page 7 - Wisconsin REALTORS® Association
Transcription
page 7 - Wisconsin REALTORS® Association
!" - 1(,-,-.-(' " # %# 1. 5 ! ,( 1 2; '!# 1. : 8,& 8. 9 $$$ &!$ 1. 67 -#$$,-. 4 - &#-/- 1-,-. !# $#! 1. 23 !""# $ !# %$& '# ! #(#)*#+,-. $ ,- " ,-. /#+0 7+(2)),&,$/38%/,&$7,212)7+(:,6&216,15($/7256$662&,$7,21 :,6&216,15($/(67$7(0$*$=,1( )(%58$5< 92/12 &RQWHQWV ,QWKH6SRWOLJKW :5$&KDLUPDQRIWKH %RDUG:DOWHU´&RUN\µ +HOO\HUUHYHDOVZKDWLW WDNHVWRVXFFHHGLQWKH EXVLQHVV )LYH7UHQGVWR:DWFK LQ %\6WHYH0XUUD\ *HWDVQHDNSHHNDWWUHQGVDIIHFWLQJWKHUHDOHVWDWH LQGXVWU\LQWKH\HDUVDKHDG :LVFRQVLQ5HDO(VWDWH1RWHV ,QVLGHWKH:5$ 4XHVWLRQV²*HW &KDLUPDQ·V&RUQHU WKH)DFWV ,QVSHFWLRQ&RQWLQJHQF\,VVXHV &RGHRI(WKLFV8SGDWH %HVWRIWKH/HJDO+RWOLQH (GXFDWLRQ8SGDWH :5$(GXFDWLRQ&DOHQGDU =LS)RUP,QIRUPDWLRQ&HQWHU 5($/7255HIHUUDO 5($/7256" /HJLVODWXUH&RQVLGHUV&RQVWLWXWLRQDO6SHQGLQJ /LPLWV 3DJH )DPLO\)HXG 3DJH ,QVSHFWLRQ &RQWLQJHQFLHV 5DLVH0DQ\ 3DJH :LVFRQVLQ·V-RE &UHDWLRQ$FW² :KDW:LOOLW 0HDQIRU :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ QHZVZUDRUJ 7ISCONSIN 5HDO(VWDWH1RWHV $UH<RX7DNLQJ$GYDQWDJHRI8V" <RXVKRXOGEH :LVFRQVLQ5HDO(VWDWHLVSXEOLVKHGE\WKH :LVFRQVLQ5($/7256$VVRFLDWLRQ :DOWHU+HOO\HU&5%&56*5,&KDLUPDQ FRUN\#SURSHUW\GRRUFRP .LWW\-HGZDEQ\&5%&56&KDLU(OHFW UMHGZDEQ\#QHZUUFRP -HII.LWFKHQ&56*5,7UHDVXUHU NLWFKHQ#SRZHUZHEQHW :LOOLDP(0DONDVLDQ&$(3UHVLGHQW ZHP#ZUDRUJ $VDPHPEHURIWKH:LVFRQVLQ5($/7256$VVRFLDWLRQ\RXKDYH PDQ\PHPEHUEHQHILWVDYDLODEOHWR\RX7KH:5$KDVFDUHIXOO\ VHOHFWHGSURJUDPVWKDWRIIHUYDOXDEOHVHUYLFHVWR\RXOLNH KHDOWKFDUHHUURUVDQGRPLVVLRQVLQVXUDQFH FUHGLWFDUGUHWLUHPHQWIXQGSKRQHVHUYLFH SODQVDQGPRUH2XUHQGRUVHG SURJUDPVDUHZLWKFRPSDQLHVWKDW KDYHDORQJKLVWRU\RITXDOLW\SURGXFWV DQGFXVWRPHUVHUYLFH -XVWORRNDWRXUOLQHXS 35R),73ODQQHG5HWLUHPHQW)XWXUH,QYHVWPHQW7UXVW WKURXJK0,7UXVW +HDOWK,QVXUDQFH3ODQVWKURXJK5(*,7,QFDUHVSHFLILFDOO\ GHVLJQHGZLWK5($/7256LQPLQG (UURUVDQG2PLVVLRQV,QVXUDQFHWKURXJK3HDUO $VVRFLDWHV/WGDQGXQGHUZULWWHQE\.HPSHU,QVXUDQFH :RUNHU·V&RPSHQVDWLRQWKURXJK,QVXUDQFH6HUYLFHVDQG XQGHUZULWWHQE\6(&85$,QVXUDQFHLQEXVLQHVVVLQFH &UHGLW&DUGDYDLODELOLW\WKURXJK0%1$ 'LVFRXQWHGGHOLYHU\SODQIURP836 /RQJGLVWDQFHVHUYLFHWKURXJK$0,&RPPXQLFDWLRQV &DOOWKH:5$RUJRWRZZZZUDRUJUHDOWRUEHQHILWVIRULQIRUPD WLRQRQ5($/725 PHPEHUEHQHILWV%HQHILWVYDU\IRUGLIIHUHQW W\SHVRI:5$PHPEHUV (GLWRULDO6WDII :LOOLDP(0DONDVLDQ 3XEOLVKHU 5REHUW8KULQD 0DQDJLQJ(GLWRU /DXUD&RQQROO\DQG(ULQ*ORGRZVNL 3XEOLFDWLRQ(GLWRUV :LVFRQVLQ5HDO(VWDWH0DJD]LQH8636 ,661³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¿YHDQGVHYHQKDYHRQHRSHQLQJHDFKDQGUHJLRQWKUHHKDV WZRRSHQLQJV 1$5'LUHFWRU $SSO\RQOLQHDWWKH:5$:HEVLWHRUE\FRQWDFWLQJ6DQG\%ROJULKQDWVDQG\E#ZUDRUJ $SSOLFDWLRQGHDGOLQHLV0DUFK JHQHUDOID[ SURGXFWVHGXFDWLRQID[ OHJDOKRWOLQHID[ SUHVLGHQWID[ ZUD#ZUDRUJ ZZZZUDRUJ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ )NSIDE WKHZUD ZLWK%LOO0DONDVLDQ : HOFRPHWRDQRWKHUHGLWLRQRI:LVFRQVLQ5HDO(VWDWH0DJD]LQH :LWKRXUGHEXWLVVXHKLWWLQJWKHVWUHHWVLQ-DQXDU\ZH·UHSURXG WRKDYHUHFHLYHGDORWRISRVLWLYHIHHGEDFNIURPDOORI\RX7KLV LVMXVWRQHRIPDQ\H[FLWLQJFKDQJHVWKDWZLOOEHLPSOHPHQWHGWKLV\HDUWR LPSURYHRXURYHUDOOFRPPXQLFDWLRQVSURFHVV 6RZKDW·VQH[W" %LOO0DONDVLDQ :5$3UHVLGHQW ´7KLVPDJD]LQHLV MXVWRQHRIPDQ\ H[FLWLQJFKDQJHVWKDW ZLOOEHLPSOHPHQWHG WKLV\HDUWRLPSURYH RXURYHUDOOFRPPX QLFDWLRQVSURFHVVµ :HOO«ODVWZHHNWKH:5$ZDVH[FLWHGWRODXQFKDQHZRQOLQHHGLWLRQRI:LVFRQ VLQ5HDO(VWDWH0DJD]LQH:H·YHLQFOXGHGHYHU\WKLQJIURPWKHSULQWYHUVLRQDQG PRUH)URPWLPHO\QHZVXSGDWHVWRSUHVVUHOHDVHVWKHQHZVLWHZLOOVHUYHDV\RXU RQHVWRSLQIRUPDWLRQSRUWDOIRUUHDOHVWDWHQHZVLQ:LVFRQVLQ<RXFDQYLVLWWKH RQOLQHHGLWLRQRI:LVFRQVLQ5HDO(VWDWH0DJD]LQHDWQHZVZUDRUJ 7KLVPRQWKZHDUHDOVRODXQFKLQJWZRQHZVHFWLRQVLQWKHPDJD]LQH²´,QWKH 6SRWOLJKWµDQGDFODVVLÀHGVHFWLRQ(DFKPRQWK7KH´6SRWOLJKWµVHFWLRQZLOO VKRZFDVHD5($/725ZKRKDVGHPRQVWUDWHGOHDGHUVKLSDQGLQJHQXLW\LQ WKHUHDOHVWDWHFRPPXQLW\:H·OOVKDUHWKHLUVXFFHVVVWRU\DQGJLYH\RXDIUHVK SHUVSHFWLYHRQZKDW·VKDSSHQLQJLQWKHUHDOHVWDWHLQGXVWU\ 7KHFODVVLÀHGVHFWLRQLVD´FDWFKDOOµIRUWKRVHIRONVZKRZDQWWRDGYHUWLVH PLVFHOODQHRXVLQIRUPDWLRQEXWPRVWLPSRUWDQWO\LWRIIHUV\RXDSODFHWRSRVW D5($/725UHIHUUDODGYHUWLVHPHQWIRU\RXUEXVLQHVV6DPSOHVRIWKHQHZ 5($/725UHIHUUDODGSURJUDPFDQEHIRXQGRQSDJH'RQ·WPLVVRXW,W·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·WPLVVDQLVVXH /DVWO\LI\RXKDYHWRSLFV\RXZRXOGOLNHFRYHUHGLQDIXWXUHLVVXHRUKDYHD UHDFWLRQWRRQHRIWKHVWRULHVZH·YHDOUHDG\SXEOLVKHGIHHOIUHHWRVXEPLW\RXU WKRXJKWVDQGLGHDVWRRXUHGLWRUDWHGLWRU#ZUDRUJ:HORRNIRUZDUGWR\RXU IHHGEDFNDQGKRSH\RXHQMR\WKHVHFRQGLVVXH %LOO0DONDVLDQ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ QHZVZUDRUJ &KDLUPDQ·V &RUQHU / HWPHEHJLQE\RIIHULQJ P\FRQJUDWXODWLRQVWRWKH :5$·V93RI0DUNHWLQJ &RPPXQLFDWLRQV5RE8KULQD DQGKLVWHDPIRUSXEOLVKLQJWKH ILQHVW5($/725PDJD]LQHLQ WKHFRXQWU\²:LVFRQVLQ5HDO(VWDWH 0DJD]LQH,I\RXKDYHDQ\VXJJHV WLRQVRUFRPPHQWVDERXWWKHQHZ PDJD]LQH,HQFRXUDJH\RXWRVHQG 5REDQHPDLODWUREX#ZUDRUJ ,KDYHMXVWUHWXUQHGIURPWKH ´1RUWKHUQ([SRVXUHµWKHPHG:LQ WHU&RQYHQWLRQLQ/DFGX)ODPEHDX :5$6HQLRU93RI%XVLQHVV6HUYLFHV .LWW\.XKO'HOOD5DQFRXUW'HEELH 7KDFNHUDQGWKH:LQWHU&RQYHQWLRQ &RPPLWWHHDUHWREHFRQJUDWXODWHG RQSXOOLQJRIIRQHRIRXUEHVW:LQWHU &RQYHQWLRQVHYHU7KHZHDWKHUZDV DELWFKLOO\EXWWKHZDUPFDPD UDGHULHPRUHWKDQPDGHXSIRULW 7KHHGXFDWLRQDORSSRUWXQLWLHVZHUH H[FHOOHQW,KRSHWKDWLQWKHIXWXUH PRUHPHPEHUVZLOOWDNHDGYDQWDJH RIWKLVWLPHWROHDUQDQGKDYHIXQ )ROORZLQJRXUUHFHQW5($/725 DQG*RYHUQPHQW'D\RQ-DQ WKH:5$·VRIÀFHUWHDPPHWZLWK WKHOHDGHUVKLSRIWKH0LQQHVRWD $VVRFLDWLRQRI5($/7256IRU WITH7ALTERh#ORKYv(ELLYER WKHIXOOGD\RQ-DQ7KH0LQ QHVRWDDVVRFLDWLRQ·V&KLHI2SHUDW LQJ2IÀFHU*OHQQ'RUIPDQLVDQ H[WUHPHO\EULJKWIHOORZDQGWKHLU SUHVLGHQW/\QQ/HHJDUGLV9LFH 3UHVLGHQWDQG*HQHUDO&RXQVHOIRU (GLQD5HDOW\ZKLFKSURYLGHGIRU VRPHOLYHO\GLVFRXUVH:HGLVFXVVHG DJHQF\LVVXHVUHFLSURFLW\DQGVSHQW DJUHDWGHDORIWLPHRQWKHSRVVLEOH FUHDWLRQRIVWDQGDUGVRISUDFWLFH:H VKDUHGZLWKWKHPRXUORQJUDQJH SODQQLQJLQDQGWKHUHVXOWVRI WKHVL[IRFXVJURXSV:HFRQFOXGHG ODVW$SULOWKDWWKHQXPEHURQHLVVXH ZLWKRXUEURNHUVZDVULVNUHGXF WLRQ,IZHFRXOGVRPHKRZGHYHORS VWDQGDUGVRISUDFWLFHZRXOGQ·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ÀQHRXUEXVLQHVVSUDFWLFHVIRU XVDQGHVWDEOLVKIRUPLGDEOHFRPSH WLWLRQ$VXVXDO,ZRXOGDSSUHFLDWH KHDULQJ\RXULQSXW<RXFDQHPDLO PHDWFRUN\#SURSHUW\GRRUFRP $V,ZULWHWKLVDUWLFOH,DPSUHSDU LQJWROHDYHIRU0DGLVRQWRDWWHQG RXUÀUVW:5$'LUHFWRU·V0HHWLQJ 7KHDJHQGDLVÀOOHGWRWKHEULPZLWK PHDW\LVVXHVOLNHFRQVWLWXWLRQDO VSHQGLQJOLPLWV$-5FDPSDLJQ ÀQDQFHUHIRUPOLFHQVHUHFLSURFLW\ FRQGRPLQLXPODZUHYLVLRQV$% DQGPXFKPRUH7KHGLUHFWRUV ZLWKWKHDGYLFHRIVWDIIQHHGWRVHW WKH:5$GLUHFWLRQRQWKHVHLVVXHV DQGWKHQZRUNRQWKHRXWFRPHV VRWKH\EHVWVXLWRXUSURIHVVLRQ 7KLVLVZKHUH53$&SOD\VVXFKD FULWLFDOSDUW,QWKLVHOHFWLRQ\HDULW LVYLWDOWKDWHDFKDQGHYHU\PHPEHU FRQWULEXWHWR53$&VRWKDWRXU YRLFHZLOOEHKHDUGLQWKHVHGLIÀFXOW OHJLVODWLYHWLPHV :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ /HJDO0DWWHUV ,QVSHFWLRQ&RQWLQJHQF\,VVXHV %<5,&.67$)) $ IWHU \HDUVRI XVHWKH LQVSHFWLRQ FRQWLQJHQF\LQ WKH'5/ DSSURYHGRIIHU WRSXUFKDVHFRQ WLQXHVWREHWKH VXEMHFWRIDODUJH QXPEHURIFDOOVWRWKH/HJDO+RWOLQH 7KHIROORZLQJGLVFXVVLRQIRFXVHVRQ WKHFRQFHSWVXQGHUO\LQJVSHFLILFFRQ WLQJHQF\SURYLVLRQVWRKHOSSURPRWH EHWWHU5($/725XQGHUVWDQGLQJRI WKHLQVSHFWLRQFRQWLQJHQF\ 'HDGOLQHSURYLVLRQ ´7KLVFRQWLQJHQF\VKDOOEHGHHPHG VDWLVÀHGXQOHVV%X\HUZLWKLQBBBBBBB GD\VRIDFFHSWDQFHGHOLYHUVWR6HOOHU DQGWROLVWLQJEURNHULI3URSHUW\LV OLVWHGDFRS\RIWKHLQVSHFWRU·VZULWWHQ LQVSHFWLRQUHSRUWVDQGDZULWWHQ QRWLFHOLVWLQJWKHGHIHFWVLGHQWLÀHGLQ WKHLQVSHFWLRQUHSRUWVWRZKLFK%X\HU REMHFWVµ 7KHJUHDWHVWPLVXQGHUVWDQGLQJDERXW WKHLQVSHFWLRQFRQWLQJHQF\DULVHVRXWRI WKHQRWLFHRIGHIHFWVGHDGOLQHSURYL VLRQ7KLVGHDGOLQHPDUNVWKHSRLQWLQ WLPHZKHQWKHFRQWLQJHQF\LVGHHPHG VDWLVÀHGLIWKHEX\HUKDVQRWJLYHQ WKHVHOOHUDQRWLFHRIGHIHFWV:KDWLV QRWIXOO\DSSUHFLDWHGE\WRRPDQ\ OLFHQVHHVLVWKDWWKLVLVQRWVLPSO\WKH GHDGOLQHIRUFRQGXFWLQJWKHLQVSHFWLRQ UHYLHZLQJWKHLQVSHFWLRQUHSRUWDQG GHFLGLQJZKHWKHUWRJLYHDQRWLFHRI GHIHFWV,QWUXWKWKHGHDGOLQHLVWKHHQG RIDQHJRWLDWLRQSURFHVVWKDWEHJLQV ZKHQWKHEX\HUUHFHLYHVWKHLQVSHFWLRQ UHSRUWEXWPRUHLPSRUWDQWO\FRQWLQXHV DVWKHEX\HUQHJRWLDWHVE\SURSRVHG DPHQGPHQWZLWKWKH VHOOHUWRUHVROYHWKH EX\HU·VFRQFHUQVDERXW GHIHFWVGHVFULEHGLQWKH LQVSHFWLRQUHSRUW,IWKH SDUWLHVFDQQRWUHDFKDQ DJUHHPHQWWKHEX\HU KDVXQWLOWKHGHDGOLQH WRGHFLGHLIKHRUVKH ZLVKHVWRULVNORVLQJWKH GHDOE\JLYLQJWKHVHOOHU DQXOWLPDWXP²DQRWLFH ZKLFKHIIHFWLYHO\VD\V ´PDNHWKHVHUHSDLUVRU, ZRQ·WFORVHµ 7RRPDQ\OLFHQVHHVPLQ LPL]HWKHLPSRUWDQFHRI *LYLQJD1RWLFHRI'HIHFWV" WKLVQHJRWLDWLRQSHULRG SUHFHGLQJWKHQRWLFHRI GHIHFWVGHDGOLQH7KH QXPEHURIGD\VDOORWWHG DPHQGPHQWYHUVXVVD\LQJ´À[WKHVH VKRXOG EH ORQJ HQRXJK WRDOORZ GHIHFWVRU,ZRQ·WFORVHµDQRWLFH%H WZRRUWKUHHSURSRVHGDPHQGPHQWV FDXVHWKHFRQWHQWLQWKHVHDPHQGPHQWV WREHH[FKDQJHGEHWZHHQWKHSDUWLHV DQGQRWLFHVLVJRLQJWREHVLPLODULQ ,IWKHEX\HUDQGVHOOHUFDQQRWDJUHHWR PDQ\FDVHV²DGHVFULSWLRQRIWKHGHIHFWV DQDPHQGPHQWWKHQWKHEX\HUKDVWR DQGDUHTXHVWWKDWWKHVHOOHUUHSDLUWKHP GHFLGHLIKHLVZLOOLQJWRULVNWKHGHDOE\ ²WKHIRUPXVHGE\WKHEX\HUEHFRPHV YHU\LPSRUWDQW7KHDPHQGPHQW GHOLYHULQJDQRWLFHRIGHIHFWV LVPHUHO\DSURSRVDOWKDWWKHVHOOHU 1RWLFH)RUP5HTXLUHG)RU FRQVLGHUUHYLVLQJWKHRIIHUWRDGGUHVV FHUWDLQGHIHFWVIRXQGLQWKHLQVSHFWLRQ 1RWLFHRI'HIHFWV 7KHQRWLFHRIGHIHFWVRQWKHRWKHUKDQG &$87,21$SURSRVHGDPHQGPHQW LVWKHEX\HU·VXQLODWHUDOXOWLPDWXPWR ZLOOQRWVDWLVI\WKLVQRWLFHUHTXLUH WKHVHOOHUWR´À[WKHVHGHIHFWVRU,ZDONµ PHQW 7KHIRUPIRUWKHEX\HU·VXQLODWHUDO GHPDQGLVWKHQRWLFHIRUP7KHFDXWLRQ 7KLVFDXWLRQUHPLQGVOLFHQVHHVWKDW ODQJXDJHLQWKHRIIHUUHPLQGVOLFHQVHHV LIDEX\HUQHHGVWRJLYHWKHVHOOHUWKH WKDWUHJDUGOHVVRIWKHODQJXDJHXVHGLQ ÀQDO´À[LWRUQRGHDOµXOWLPDWXPWKH DQDPHQGPHQWDSURSRVHGDPHQGPHQW EX\HUPXVWGRVRRQDQRWLFHIRUP LVQRWDQRWLFHRIGHIHFWVEHFDXVHDSUR 7KLVUHTXLUHPHQWH[LVWVEHFDXVHLWLV SRVHGDPHQGPHQWLVVLPSO\DQRQELQG H[SHFWHGWKDWWKHSDUWLHVZLOORIWHQ LQJUHTXHVWWRPRGLI\WKHRIIHU·VWHUPV SURSRVHDPHQGPHQWVEHIRUHJHWWLQJWR ,WLVQRWWKHEX\HU·VXOWLPDWXP WKH´XOWLPDWXPµ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·V FRRSHUDWLRQDQGFRPSHQVDWLRQSROLFLHV WRDEX\HURUWHQDQWFOLHQWSHU6WDQGDUG RI3UDFWLFH6WDQGDUGRI3UDFWLFH ZDVDPHQGHGHIIHFWLYH-DQXDU\ WRVLPLODUO\UHTXLUHOLVWLQJEURNHUV WRGLVFORVHWKHLUFRRSHUDWLRQSROLFLHV DQGWKHLUW\SLFDOFRRSHUDWLYHFRPSHQ VDWLRQWRSRWHQWLDOVHOOHUFOLHQWV 6WDQGDUGRI3UDFWLFH:KHQHQWHU LQJLQWREX\HUWHQDQWDJUHHPHQWV 5($/7256PXVWDGYLVHSRWHQWLDO FOLHQWVRI WKH5($/725¶VJHQHUDOFRPSDQ\ SROLFLHVUHJDUGLQJFRRSHUDWLRQDQG FRPSHQVDWLRQDQG WKHDPRXQWRIFRPSHQVDWLRQWREH SDLGE\WKHFOLHQW WKHSRWHQWLDOIRUDGGLWLRQDORURIIVHW WLQJFRPSHQVDWLRQIURPRWKHUEURNHUV IURPWKHVHOOHURUODQGORUGRUIURP RWKHUSDUWLHVDQG DQ\SRWHQWLDOIRUWKHEX\HUWHQDQW UHSUHVHQWDWLYHWRDFWDVDGLVFORVHG GXDODJHQWHJOLVWLQJEURNHUVXE DJHQWODQGORUG·VDJHQWHWF$GRSWHG 5HQXPEHUHG$PHQGHG $JUHHPHQWVLQ:ULWLQJ $PHQGPHQWVWR$UWLFOHEULQJWKH &RGHRI(WKLFVPRUHLQOLQHZLWK:LV $GPLQ&RGHUHTXLUHPHQWWR KDYHDOOUHDOHVWDWHDJUHHPHQWVRIWKH SDUWLHVLQZULWLQJ$UWLFOHKDVEHHQ FODULÀHGWRSURYLGHWKDWDOODJUHHPHQWV UHODWHGWRWKHSDUWLHV·UHDOHVWDWHWUDQV DFWLRQVLQFOXGLQJOLVWLQJFRQWUDFWV EX\HUDJHQF\DJUHHPHQWVSXUFKDVH FRQWUDFWVDQGOHDVHVPXVWEHSXWLQ ZULWLQJLQFOHDUDQGXQGHUVWDQGDEOH ODQJXDJH5/VLPLODUO\UHTXLUHV WKDWDOOOLVWLQJFRQWUDFWVJXDUDQWHHG VDOHVDJUHHPHQWVEX\HUDJHQF\ DJUHHPHQWVRIIHUVWRSXUFKDVHSURS HUW\PDQDJHPHQWDJUHHPHQWVRSWLRQ FRQWUDFWVÀQDQFLDOREOLJDWLRQVDQGDQ\ RWKHUWUDQVDFWLRQDODJUHHPHQWVRIWKH SDUWLHVEHSXWLQZULWLQJ $UWLFOH5($/7256IRUWKHSURWHF WLRQRIDOOSDUWLHVVKDOODVVXUHZKHQHY HUSRVVLEOHWKDWDOODJUHHPHQWVUHODWHG WRUHDOHVWDWHWUDQVDFWLRQVLQFOXGLQJ EXWQRWOLPLWHGWROLVWLQJDQGUHSUHVHQ WDWLRQDJUHHPHQWVSXUFKDVHFRQWUDFWV DQGOHDVHVVKDOOEHDUHLQZULWLQJDQG VKDOOEHLQFOHDUDQGXQGHUVWDQGDEOH ODQJXDJHH[SUHVVLQJWKHVSHFLÀFWHUPV FRQGLWLRQVREOLJDWLRQVDQGFRPPLW PHQWVRIWKHSDUWLHV$FRS\RIHDFK DJUHHPHQWVKDOOEHIXUQLVKHGWRHDFK SDUW\WRVXFKDJUHHPHQWVXSRQWKHLU VLJQLQJRULQLWLDOLQJ$PHQGHG 'LVFORVXUHRI$FFHSWHG2IIHUV +LVWRULFDOO\5($/7256KDYHEHHQ UHTXLUHGWRGLVFORVHWKHH[LVWHQFHRI DFFHSWHGRIIHUVWRDQ\EURNHUVHHNLQJ FRRSHUDWLRQDFFRUGLQJWR6WDQGDUGRI 3UDFWLFH6WDQGDUGRI3UDFWLFH KDVEHHQPRGLÀ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À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´3URVSHFWµ 7KH&RGHRI(WKLFVKDVDGGHGD GHÀQLWLRQRIWKHWHUP´SURVSHFWµLQ 6WDQGDUGRI3UDFWLFH$SURVSHFWLV GHÀQHGDV´DSXUFKDVHUVHOOHUWHQDQW RUODQGORUGZKRLVQRWVXEMHFWWRD UHSUHVHQWDWLRQUHODWLRQVKLSZLWKWKH 5($/725RU5($/725·VÀUPµ 5HIHUHQFHVWR´SURVSHFWVµDSSHDULQ 6WDQGDUGVRI3UDFWLFH DQGZKLFKSURKLELW5($/7256 :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ /HJDO0DWWHUV IURPVROLFLWLQJVHOOHUVZLWKH[FOXVLYH OLVWLQJVUHTXLUHWKHPWRFRQÀUPWKDW SDUWLHVDUHQRWDOUHDG\VXEMHFWWRH[FOXVLYH DJUHHPHQWVZLWKEURNHUVDQGUHTXLUHWKHP WRDVNSURVSHFWVLIWKH\DUHLQH[FOXVLYH UHSUHVHQWDWLRQDJUHHPHQWVOLNHDEX\HU DJHQF\DJUHHPHQWEHIRUHSURYLGLQJVXE VWDQWLYHVHUYLFHV 'HILQLQJ´5HSUHVHQWDWLYHVµ ,QDQHIIRUWWRDFNQRZOHGJHWKDW5($/ 7256LQVRPHVWDWHVGRQRWDOZD\VKDYH DJHQF\UHODWLRQVKLSVZLWKFOLHQWVDQG FXVWRPHUV6WDQGDUGVRI3UDFWLFH DQGKDYH EHHQDPHQGHGWRUHSODFHUHIHUHQFHVWR DJHQWVZLWKWKHWHUP´UHSUHVHQWDWLYHµ &RGHRI(WKLFVDQG$UELWUDWLRQ0DQXDO 3ROLFLHVDQG3URFHGXUHV ,QDGGLWLRQWRWKHVXEVWDQWLYHFKDQJHVLQ WKH&RGHRI(WKLFVSROLF\DQGSURFHGXUDO FKDQJHVKDYHEHHQPDGHWRWKH&RGHRI (WKLFVDQG$UELWUDWLRQ0DQXDO&($0 &RQWLQJHQF\LVVXHVFRQWIURPS 4XDOLILHGLQVSHFWRUV 7KLV2IIHULVFRQWLQJHQWXSRQD:LVFRQ VLQUHJLVWHUHGKRPHLQVSHFWRUSHUIRUP LQJDKRPHLQVSHFWLRQRIWKH3URSHUW\ DQGDQLQVSHFWLRQE\DTXDOLÀHGLQGH SHQGHQWLQVSHFWRURIBBBBBBBBZKLFK GLVFORVHVQRGHIHFWVDVGHÀQHGEHORZ 7KLVVHQWHQFHDGGUHVVHVWKUHHNH\LVVXHV ,IDEX\HUZLVKHVWRKDYHD´KRPH LQVSHFWLRQµLWPXVWEHGRQHE\D:LVFRQ VLQUHJLVWHUHGKRPHLQVSHFWRU (QJLQHHUVFRQWUDFWRUVDUFKLWHFWV HWFPD\EHTXDOLÀHGWRLQVSHFWWKH SURSHUW\EXWWKHLULQYROYHPHQWVKRXOG EHGHVFULEHGXQGHUWKH´TXDOLÀHG LQGHSHQGHQWLQVSHFWRUµSKUDVHWKDWOLVWV WKHFRPSRQHQWVRIWKHSURSHUW\WKDWWKH\ ZLOOLQVSHFW ,IWKHEX\HUZDQWVWRXVH´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ÀQHV KDYHEHHQLQFUHDVHGIURPWR WRPDWFKWKHLQFUHDVHPDGHLQWR WKHVDQFWLRQLQJJXLGHOLQHV([SHGLWHG SURFHGXUHVDUHXVHGZKHQDFRPSODLQWKDV EHHQÀOHGDQGWKH5($/725DGPLWVWKH EHKDYLRULQWKHFRPSODLQWHOLPLQDWLQJWKH GDGµRUDQ\RWKHUQRQTXDOLÀHGRUQRQ LQGHSHQGHQWLQVSHFWRUVWKHFRQWLQJHQF\ PXVWEHPRGLÀHGWRLQGLFDWHZKRWKH LQVSHFWRUVDUHZKDWWKH\DUHLQVSHFWLQJ DQGZKDWZLOOEHFRQVLGHUHGDGHIHFW,Q DGGLWLRQUHIHUHQFHVWR´TXDOLÀHGµDQG ´LQGHSHQGHQWµVKRXOGEHVWUXFN,IWKH PRPDQGGDGDUH´LQVSHFWLQJµWREHVXUH WKDWWKH\OLNHWKHSURSHUW\ERWKSDUWLHV VKRXOGXQGHUVWDQGWKDWWKHRIIHUZLOO OLNHO\EHXQHQIRUFHDEOHXQWLOWKHFRQWLQ JHQF\LVVDWLVÀHGEHFDXVHWKHVWDQGDUG LQUHDOLW\LV´VXEMHFWWRPRPDQGGDG·V VDWLVIDFWLRQµ 3ULRUNQRZOHGJHRIGHIHFWV 'HIHFWVGRQRWLQFOXGHVWUXFWXUDOPH FKDQLFDORURWKHUFRQGLWLRQVWKHQDWXUH DQGH[WHQWRIZKLFK%X\HUKDGDFWXDO NQRZOHGJHRUZULWWHQQRWLFHEHIRUHVLJQ LQJWKLV2IIHU )LQDOO\DQH[FHSWLRQWRWKHGHÀQLWLRQRI GHIHFWVDUHWKRVHGHIHFWVWKHEX\HUKDG :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ QHHGIRUDKHDULQJ 0RGLÀFDWLRQVKDYHDOVREHHQPDGHWKH VDQFWLRQLQJJXLGHOLQHVLQFOXGLQJLQFUHDV LQJVXJJHVWHGÀQHV,QDGGLWLRQWRÀQHV KHDULQJSDQHOVPD\VXJJHVWSUREDWLRQDVD GLVFLSOLQDU\PHDVXUH3UREDWLRQPHDQVWKDW DQRWKHUIRUPRIGLVFLSOLQHUHFRPPHQGHG E\WKHKHDULQJSDQHOPD\EHVXVSHQGHG RUSXWRQKROGIRUDSHULRGRIXSWRRQH \HDU$Q\VXEVHTXHQWÀQGLQJRID&RGHRI (WKLFVYLRODWLRQGXULQJWKHSUREDWLRQDU\ SHULRGPD\DWWKHGLVFUHWLRQRIWKHERDUG RIGLUHFWRUVUHVXOWLQWKHLPSRVLWLRQRI WKHVXVSHQGHGGLVFLSOLQH,IWKHUHDUHQR ÀQGLQJVRIIXUWKHUYLRODWLRQVGXULQJWKH SUREDWLRQDU\SHULRGERWKWKHSUREDWLRQDU\ VWDWXVDQGWKHVXVSHQGHGGLVFLSOLQHVKDOO EHFRQVLGHUHGIXOÀOOHG 7KHFKDQJHVDQGWKHIXOOWH[WRI WKH&RGHRI(WKLFVDUHIRXQGDW ZZZUHDOWRURUJPHPSROZHEQVI FZRH"RSHQYLHZUHTXLUHV1$5SDVVZRUG DFWXDONQRZOHGJHRUZULWWHQQRWLFHRI EHIRUHZULWLQJWKHRIIHU7KLVHQFRXUDJHV WKHVHOOHUWRJLYHIXOOGLVFORVXUHRIGHIHFWV EHFDXVHD´IXOO\GLVFORVHGGHIHFWµFDQQRW EHXVHGDVDQ´RXWµIRUWKHEX\HU(YHQ LIWKHVHOOHUGLVFORVHVWKHIXOOH[WHQWRID SUREOHPHJDGDPDJHGURRIWKDWQHHGV WREHUHSODFHGVRPHWLPHVWKHEX\HUVWLOO ZDQWVWRLQYHVWLJDWHWKHPDWWHUIXUWKHU JHWHVWLPDWHVIRUWKHZRUNDQGWKHQGH FLGHLIKHZDQWVWRSXUFKDVHWKHSURSHUW\ ,QVXFKDFLUFXPVWDQFHLWPD\EHQHFHV VDU\WRVSHFLI\WKDWWKHGHIHFWFRXOGVWLOO EHWKHVXEMHFWRIDQRWLFHRQFHWKHEX\HU JHWVDGGLWLRQDOLQIRUPDWLRQUHJDUGLQJ WKHFRVWKHDWKFRQFHUQVLPSDFWRQYDOXH HWF$GGLQJODQJXDJHWKDWLQGLFDWHVWKDW WKHSDUWLHVDJUHHWKDWD´IXOO\GLVFORVHG GHIHFWµ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À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ÀQHGDV KRPHVWHDGLIERWKVSRXVHVOLYHWKHUHRU HYHQLIRQO\RQHVSRXVHUHVLGHVLQWKH SURSHUW\%RWKVSRXVHVPXVWVLJQRIIHUV DQGGHHGVZKHQHYHUDSURSHUW\LVFODVVL ÀHGDVKRPHVWHDG 5H0DULWDO3URSHUW\2QWKHWLWOHZRUN LWVWDWHVWKDWWKHSURSHUW\LVKHOGDV VXUYLYRUVKLSPDULWDOSURSHUW\&DQ WKHKXVEDQGVHOOLWZLWKRXWWKHZLIH·V VLJQDWXUH" 7KLVZLOOGHSHQGXSRQWKHW\SHRI SURSHUW\LQYROYHGDQGZKLFKVSRXVHV KDVPDQDJHPHQWDQGFRQWURO,IWKH SURSHUW\LVQRWKRPHVWHDGSURSHUW\DQG WKHSURSHUW\LVWLWOHGLQWKHQDPHV´0U 6HOOHURU0UV6HOOHUKXVEDQGDQGZLIH DVVXUYLYRUVKLSPDULWDOSURSHUW\µWKHQ HLWKHU0U6HOOHURU0UV6HOOHUFRXOG H[HUFLVHPDQDJHPHQWDQGFRQWURODQG LQGLYLGXDOO\FRQYH\WLWOH,IWKHWLWOHVD\V ´0U6HOOHUDQG0UV6HOOHUKXVEDQGDQG ZLIHDVVXUYLYRUVKLSPDULWDOSURSHUW\µ RULIWKHSURSHUW\LVKRPHVWHDGWKHQ ERWKVSRXVHVPXVWH[HFXWHDQ\RIIHUWR SXUFKDVHDQGWKHGHHG 7KHOLVWLQJDJHQWKDVUHFHLYHGDQ RIIHUIURPDPDUULHGFRXSOHSXUFKDV LQJWKHSURSHUW\IRUWKHLUSHUVRQDO UHVLGHQFH+RZHYHURQO\RQHQDPH DQGVLJQDWXUHDSSHDUVRQWKHRIIHU DQGFRXQWHURIIHUZKLFKKDVEHHQ DFFHSWHG,VWKLVDYDOLGRIIHU",IQRW FDQWKHFRXQWHURIIHUEHZLWKGUDZQ XQWLOWKHRWKHUVSRXVHVLJQV" 0DUULHGSHUVRQVPD\DFTXLUHSURSHUW\LQ WKHQDPHRIRQO\RQHVSRXVH$ELQGLQJ RIIHUZLOOEHFUHDWHGSURYLGHGWKHRIIHUWR SXUFKDVHLVLQRQHQDPHDQGWKDWEX\HU VLJQVWKHRIIHUWRSXUFKDVH,WLVXSWRWKH EX\HUVWRGHFLGHZLWKWKHDGYLFHRIWKHLU DWWRUQH\LIGHVLUHGLIWKH\ZLVKWRKROG WLWOHLQWKHQDPHRIRQO\RQHVSRXVH $EURNHUOLVWHGDFRPPHUFLDOUHDO HVWDWHEXVLQHVVSURSHUW\ZKHUHWKH GHHGLVLQWKHZLIH·VQDPH6KHDQG KHUKXVEDQGDUHJRLQJWKURXJKD GLYRUFH:KRVKRXOGVLJQWKHGHHG" ,QJHQHUDOLILQYHVWPHQWFRPPHUFLDO SURSHUW\QRQKRPHVWHDGLVRZQHGRQO\ LQRQHVSRXVH·VQDPHRQO\WKDWSHUVRQ QHHGVWRVLJQWKHGHHG7KHUHPD\EH PDULWDOSURSHUW\LVVXHVLQYROYHGLQWKLV VLWXDWLRQEXWWKDWLVIRUWKHLUGLYRUFH DWWRUQH\VWRVRUWRXW $VHOOHUVLJQHGDQRIIHUIRUERWKKLP VHOIDQGKLVZLIH+HVDLGWKDWKHKDG KLVZLIH·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·V QDPHDQGSXW´SHUWHOHSKRQHFDOOµ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·VDXWKRULW\DVDQDJHQWQRU LVLWDJRRGLGHDRUSUDFWLFHIRUEURNHUV WRVHHNRUDFFHSWWKLVDXWKRULW\/RQJ GLVWDQFHFRPPXQLFDWLRQKDVLQKHUHQW PLVXQGHUVWDQGLQJ,WLVEHWWHUWRVKLIW WKLVDXWKRULW\WRWKHSDUW\·VDWWRUQH\RU DUHODWLYH$OVRLQWKLVGD\RIRYHUQLJKW PDLOID[HVDQGHPDLOGRFXPHQWVFDQEH VHQWGLVFXVVHGE\SKRQHDQGUHWXUQHG LQDYHU\VKRUWWLPH 7KHSRZHURIDWWRUQH\DXWKRULW\WRVLJQ IRUDQRWKHUVKRXOGEHJLYHQLQZULWLQJ SUHIHUDEO\QRWDUL]HGZLWKWKHIXOOHVW SRVVLEOHLQVWUXFWLRQVIURPWKHDXWKRUL] LQJSDUW\:KHQVLJQLQJGRFXPHQWV WKH3RZHURI$WWRUQH\32$VKRXOG FRPSO\ZLWK:LV6WDWZKLFK SURYLGHVWKDWERWKWKHSDUW\·VQDPHDQG WKH32$·VQDPHPXVWDSSHDUZLWKDQ LQGLFDWLRQRIDXWKRULW\VXFKDV´6HOOHU; E\%DXWKRUL]HGDJHQWµRU´%DVDJHQW RQEHKDOIRI6HOOHU;µ $OLFHQVHHLVZRUNLQJZLWKDEX\HU ZKRZDVWU\LQJWRSXUFKDVHYDFDQW ODQG:KHQKHFRXOGQRWJHWWKH GHVLUHG]RQLQJWKHEX\HUGHFLGHGWR FDQFHOWKHRIIHU7KHEX\HUOLYHVWZR KRXUVDZD\DQGGRHVQRWKDYHDFFHVV WRDID[VRKHDVNHGWKHOLFHQVHHWR VLJQWKH&$05IRUKLPDQGLQLWLDOLW &DQWKHOLFHQVHHGRWKLV" 7KH/HJDO+RWOLQH /HJDO,QIRUPDWLRQIRU0HPEHUV RIWKH:5$ /HJDO,QIRUPDWLRQIRU0HPEHUVRIWKH:5$ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ )LYH7UHQGVWR :DWFK,Q $ IWHUUHFRUGEUHDNLQJ\HDUVLQDURZLQWKH KRXVLQJVDOHVPDUNHWOHDGLQJEURNHUVDQGVDOHV SURIHVVLRQDOVDUHOLNHO\DELWZHDU\IURPDOOWKH GRRPVD\HUVZKRSUHGLFWLPPLQHQWGLVDVWHUIRUWKHUHDO HVWDWHEXVLQHVV:KLOHQRWKLQJGUDVWLFLVRQWKHKRUL]RQ WKHUHDUHXQIROGLQJHYHQWVWKDWWHOOXVPXFKDERXWZKDW ZLOOKDSSHQLQWKH\HDUVDKHDG+HUHDUHMXVWILYHWKDWZH DUHZDWFKLQJPRVWFORVHO\ &RQVXPHUVHJPHQWDWLRQDQGGLIIHUHQWLDWLRQ +RXVLQJFRQVXPHUVRQFHUHOHJDWHGWRDEDFNVHDWUROHLQWKH SURFHVVRIEX\LQJDQGVHOOLQJKRPHVDUHQRORQJHUFRQWHQW WREHSDVVLYHSDUWLFLSDQWV7KRXJKFRQVXPHUVKDYHEHFRPH PRUHLQYROYHGDQGNQRZOHGJHDEOHDERXWKRXVLQJSULFHV DQGPDUNHWVEHFDXVHWKH\DUHXVLQJWKH,QWHUQHWLWLVDOVR GXHWRWKHHPHUJHQFHRIDQHZJHQHUDWLRQRIFRQVXPHUV ZKRDUHQRWQHDUO\DVZLOOLQJWREHSDVVLYH7KHVHFRQVXP HUVZDQWWRNQRZZKDWLVJRLQJRQDWDOOWLPHVDQGWKH\ ZDQWWREHEHWWHULQIRUPHGDERXWWKHSURFHVVRIEX\LQJ KRPHV$QGWKH\DUHGHPDQGLQJPRUHRIUHDOHVWDWHDVVRFL DWHVDWHYHU\VWHSRIWKHSURFHVV )XUWKHUWKHVHVDPHFRQVXPHUVDUHVHHNLQJWRFXVWRPL]HWKH H[SHULHQFHRIEX\LQJDQGVHOOLQJDVQHYHUEHIRUH7KHUHDUH VRPHVHJPHQWVZKRZDQWWRWU\)6%2VRPHZKRZDQWWR WU\GLVFRXQWRQOLQHÀUPVDQGRWKHUVZKRZDQWIXOOVHUYLFH SURIHVVLRQDOVZLWKDWZLVW7KH\DUHPRUHZLOOLQJWKDQ HYHUWRQHJRWLDWHWKHFRPPLVVLRQFRVWEXWWKH\ZDQWPRUH VHUYLFHWKDQLQWKHSDVW1RPRUHZLOOZHIDFHDFRQVXPHU ZKRKDVRQO\WZRFKRLFHV²IXOOVHUYLFHDWIXOOSULFHRUWKH DOWHUQDWLYH)6%21RZWKH\KDYHPRUHFKRLFHVLQDOPRVW HYHU\PDUNHWLQWKHFRXQWU\ %<67(9(0855$< &RQVROLGDWLRQRIWKHSXUFKDVHDQGVDOHSURFHVV /HDGLQJUHDOHVWDWHÀUPVDQGSURIHVVLRQDODVVRFLDWHVDUH RIIHULQJ´RQHVWRSµVKRSSLQJZKHUHDEX\HUFDQJHWDOORI WKHSURGXFWVDQGVHUYLFHVQHFHVVDU\WRWKHFORVLQJIURPRQH FRPSDQ\:KLOHWKLVZDVVHHQDVDQLFHH[WHQVLRQRIWKH VHUYLFHVRIIHUHGE\DÀUPDQGLWVDVVRFLDWHVLQWKHSDVWZH DUHQRZDWWKHIURQWHQGRIWKHWLPHZKHQKDYLQJVXFKD FDSDELOLW\ZLOOEHFRPHDVWUDWHJLFDGYDQWDJHIRUWKRVHÀUPV WKDWFDQRIIHULWYHUVXVWKRVHZKRFDQ·WRUGRQ·W 7KHWUHQGWKDWLVVRPHZKDWZRUULVRPHLVWKDWUHDOHVWDWH ÀUPVDUHQRWWKHRQO\RQHVWRRIIHUWKHVHSDFNDJHV/HDGLQJ PRUWJDJHDQGWLWOHLQVXUDQFHSURYLGHUVDUHPRYLQJTXLFNO\ WRSDFNDJH´VHWWOHPHQWVHUYLFHVµLQWRVLQJOHVHUYLFHVLQJOH SULFHRIIHULQJVIRUWKHFRQVXPHU$QGWKH\DUHRIIHULQJ WKHPGLUHFWWRKRXVLQJFRQVXPHUVRUDUHEHJLQQLQJWR RYHUWKHKHDGVRIWKHUHDOW\SURYLGHUV,QVHYHUDOFDVHV WKHVHÀUPVDUHRIIHULQJWRSODFHDSRWHQWLDOFXVWRPHUZLWK DSURIHVVLRQDODVVRFLDWHDIWHUWKH\KDYHKRRNHGXSZLWKD VHWWOHPHQWVHUYLFHSURYLGHU5HJDUGOHVVRIZKHWKHU+8' IRUPDOL]HVWKH*XDUDQWHHG0RUWJDJH3DFNDJH*03PRUW JDJHOHQGHUVDQGWLWOHSURYLGHUVNQRZWKDWWKH\GRQ·WQHHG +8'·VSHUPLVVLRQWRFRQVROLGDWHWKHVHSDUWVRIWKHSURFHVV ,QFUHDVHLQULVNVRIEXVLQHVV 2YHUWKHSDVWWKUHH\HDUVWKHLQGXVWU\KDVVHHQDVLJQLÀFDQW ULVHLQWKHFRVWRIHUURUVDQGRPLVVLRQVLQVXUDQFHZLWKD VLPXOWDQHRXVGHFUHDVHLQFRYHUDJH$WWKHVDPHWLPHD QHZO\DZDNHQHG(3$DQG+8'DUHHQIRUFLQJWKHLUUXOHV DQGUHJXODWLRQVPRUHGHWHUPLQHGO\WKDQHYHUEHIRUH)LQHV DJDLQVWWKRVHZKRYLRODWH+8'UXOHVRQUHIHUUDOIHHVDQG UHEDWHVDQG(3$RQOHDGEDVHGSDLQWGLVFORVXUHVDUHJURZ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ QHZVZUDRUJ LQJLQQXPEHUDQGYROXPH 7KHÁLSVLGHRIWKHSURVSHULW\LQRXU LQGXVWU\LVWKDWZLWKVRPXFKUHYHQXH ÁRZLQJWKURXJKEURNHUDJHWKHSODLQ WLIIVEDUKDVGLVFRYHUHGWKDWUHDOHVWDWH SUDFWLWLRQHUVDUHDELJMXLF\WDUJHWIRU OLWLJDWLRQUHJDUGLQJSURSHUW\GLVFOR VXUHDQGDJHQF\PDWWHUV$QHFGRWDO HYLGHQFHVXJJHVWVWKHUHDUHPRUHWKDQ DIHZUHJLRQVRIWKHFRXQWU\H[SHULHQF LQJWKHLVVXHRIULVLQJOLWLJDWLRQDJDLQVW UHDOHVWDWHÀUPV$QGOHW·VQRWJHWLQWR PROGHLWKHU $WWKHVDPHWLPHWKHDGYHQWRIWKH &/8(V\VWHPLVPDNLQJLWPXFK PRUHGLIÀFXOWIRUEX\HUVWRJHW KRPHRZQHU·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·VRU$VVLVW6HOO WKHQXPEHUDQGW\SHVRIQHZEURNHU DJHPRGHOVLQWKHPDUNHWWRGD\LV DVWRXQGLQJ 0RVWDUHEDVHGRQWKHEHOLHIWKDW FRQVXPHUVÀUVWZDQWLQIRUPDWLRQDQG WKHQZDQWDFKRLFHDPRQJVHUYLFH SURYLGHUV7KHUHLVDOVRDVHJPHQW VHHDERYHWRZKRPWKHFRVWRIWKH WUDQVDFWLRQLVWKHPRVWLPSRUWDQW SDUW:KHUHLQWKHSDVWFRQVXPHUV KDGOLWWOHFKRLFHQRZWKH\KDYHPDQ\ 7KHVHQHZPRGHOVKDYHLPSRUWDQW RWKHUGLIIHUHQFHVWKH\KDYHIDUOHVV RIÀFHDQGHPSOR\PHQWRYHUKHDGWKDQ WUDGLWLRQDOÀUPVWKH\KDYHDFFHVVWR WKHVDPHLQYHQWRU\WKDWWUDGLWLRQDO ÀUPVKDYHDQGWKH\LQPDQ\FDVHVDUH IDUPRUHVKUHZGLQWKHLUPDUNHWLQJRI WKHVHDGYDQWDJHVWRFRQVXPHUVWKDQ WUDGLWLRQDOÀUPVZLWKWKHLUIXOOSULFH IXOOVHUYLFHPRGHOV &RQVROLGDWLRQLQWKH,QGXVWU\ 7KHODUJHVWEUDQGHGUHDOHVWDWH FRPSDQLHVLQWKH86QRZKDYHQRUWK RISHUFHQWPDUNHWVKDUHRIDOOFORVHG WUDQVDFWLRQV7KHODUJHVWUHDOW\ FRPSDQLHVDWWKHORFDODQGUHJLRQDO OHYHOQRZKDYHQHDUO\SHUFHQW VKDUHRXWRIEURNHUDJHÀUPV $QGLQPRVWPDMRUPHWURSROLWDQDUHDV LWLVQRWXQXVXDOWRVHHIRXURUIHZHU ÀUPVKDYLQJRYHUSHUFHQWPDUNHW VKDUHRIDOOWUDQVDFWLRQVLQWKHPDUNHWV WKH\VHUYH :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ <HWIRUWKHPRVWSDUWZHUHPDLQD KLJKO\IUDJPHQWHGEXVLQHVV:KHQ PHDVXULQJPDUNHWVKDUHVDVDERYHZH FDQRQO\PHDVXUHWKHVKDUHRI0/6 UHFRUGHGEXVLQHVV7KLVOHDYHVRXW WKH)6%2DQGQHZKRPHVPDUNHWLQ PRVWFDVHVZKLFKDFFRXQWIRUQRUWK RISHUFHQWRIDOOKRXVLQJVDOHVLQ WKHFRXQWU\7KXVFRQVROLGDWLRQZLOO FRQWLQXHDVOHDGLQJORFDOUHJLRQDO DQGQDWLRQDOEURNHUDJHÀUPVVHHN WRVSUHDGWKHLUEXVLQHVVHVLQWRHYHU\ QLFKHRIWKHPDUNHW 7KHVWUHHWVDUHQRWDVVDIHDQGSUHGLFW DEOHIRURXUEXVLQHVVDVWKH\KDYH EHHQLQWKHSDVW:KLOHWKHIXWXUH ORRNVYHU\EULJKWIRUWKHKRXVLQJ PDUNHWWKHUHDUHDQ\QXPEHURIQHZ QHLJKERUVZLWKZKRPZHZLOOKDYHWR JHWIDPLOLDUZLWKLQWKH\HDUVDKHDG 5($&+ 025( +20( %8<(5 6 :LWK '2(&).!.#). ' !FFORDABLE,46&INANCING &INANCING/PTIONS&OR"ORROWERS7HOARE#REDIT 7ORTHY9ET,ACK#ASH2ESERVES v v v v v v 1RGRZQSD\PHQWFDVKUHVHUYHVRUPRQWKO\PRUWJDJHLQVXUDQFHDUHUHTXLUHG &ORVLQJFRVWVDQGUHSDLUVFDQEHILQDQFHGXSWRWKHDSSUDLVHGYDOXHRIWKHKRPH $IIRUGDEOH\HDUIL[HGUDWHILQDQFLQJRIIHUHGE\PRUHWKDQOHQGHUVLQ:, (OLJLEOHDUHDVLQFOXGHUXUDODUHDVDQGQRQ06$FRPPXQLWLHVXQGHUSRSXODWLRQ 0RGHUDWHLQFRPHJXLGHOLQHVDSSO\DQGYDU\ZLWKKRXVHKROGVL]HDQGFRXQW\ 5XUDO'HYHORSPHQWDSSURYDOLVXVXDOO\ZLWKLQEXVLQHVVGD\V /VERFAMILIESBENEFITEDFROM7ISCONSIN2URAL $EVELOPMENTS3INGLE&AMILY(OUSING0ROGRAMLASTYEAR 86'$5XUDO'HYHORSPHQW '2( WWWRURDEVUSDAGOVWI 86'$LVDQHTXDORSSRUWXQLW\SURYLGHUDQGHPSOR\HU ,QWKH 3POTLIGHT :DOWHU´&RUN\µ+HOO\HU&5%&56*5, &KDLUPDQRIWKH:5$%RDUGRI'LUHFWRUV :5$&KDLUPDQDQG9HWHUDQ'RRU&RXQW\5($/725:DOWHU´&RUN\µ+HOO\HUVKDUHVKLV YLVLRQIRUZK\SODLQROGKDUGZRUNHTXDOVVXFFHVV +RZGLG\RXJHWVWDUWHGLQUHDOHVWDWH" &RUN\+HOO\HU,VSHQW\HDUVLQWKHPDW WUHVVPDQXIDFWXULQJEXVLQHVVLQ&KLFDJR XQWLOVRPHRQHFDPHDORQJDQGRIIHUHG WREX\WKHFRPSDQ\DWDSULFH,FRXOGQ·WUH IXVH,VROGWKHFRPSDQ\LQDQGDIWHU DVHULHVRIHYHQWVP\ZLIHDQG,ZHQWWR OLYHIRUWKHVXPPHUDWDVHFRQGKRPHZH RZQHGLQ'RRU&RXQW\:HPHDQWWROLYH WKHUHWHPSRUDULO\ZKLOH,GHFLGHGZKHUH WRJRQH[WEXWWKHORQJHUZHVWD\HGWKH PRUHZHIHOOLQORYHZLWKIXOOWLPHOLYLQJLQ 'RRU&RXQW\:HGHFLGHGWRMXVWVWD\DQG ,ZRXOGÀ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ÀYHSHRSOHFRPHRYHUWR 3URSHUWLHVRI'RRU&RXQW\IURPWKHROG FRPSDQ\'RRU&RXQW\5HDOW\:H·YH DGGHGÀYHPRUHWKUHHRIZKRPDUHQHZ UHFUXLWV:H·UHDERXWWRDGGRXUHOHYHQWK DJHQW ,QHLJKWPRQWKVZH·YHFRPHDORQJZD\ $VRIWKHHQGRIZHKDGWKHODUJHVW OLVWLQJLQYHQWRU\LQ'RRU&RXQW\,IHHO YHU\HQFRXUDJHGDERXWWKHZD\ZH·UH JRLQJ +RZGR\RXKHOSQHZDJHQWVDGMXVWWR WKHEXVLQHVV" &+<RX·YHJRWWRJLYHWKHPDORWRIKHOS DQGWUDLQLQJ²VKRZWKHPKRZWRJHW LQWRWKH0/6HYHU\GD\DQGÀQGH[SLUHG OLVWLQJVDQGVHHLIWKH\FDQSLFNWKHPXS <RXFDQWHOODSHUVRQKRZWRGRWKDWW\SH RIWKLQJEXWWKH\·YHVWLOOJRWWRSXWLQ WKHKRXUVRIZRUNLQJDWLW,GRQ·WH[SHFW VRPHRQHWRZRUNKRXUVSHUZHHNEXW LW·VWKHW\SHRIEXVLQHVVZKHUH\RX·YHJRW WRJRRXWDQGÀQGEXVLQHVV<RXKDYHWR ZRUNRQEULQJLQJFOLHQWVWR\RXUDWKHUWKDQ ZDLWLQJIRUWKHPWRIDOOLQ\RXUODSDQG VRPHWLPHV,WKLQNLW·VKDUGIRUQHZDJHQWV WRFRPSUHKHQGWKDW $VXFFHVVIXOVWDUWHUZLOOEHRXWDPRQJ SHRSOHWKH\NQRZDQGZLOOEHDEOHWRVKRZ WKHPWKDWWKH\DUHVHULRXVDERXWLW7KH\·OO EHVHQGLQJPDLOLQJVPDNLQJWKHDSSURSUL DWHFDOOVDQGWU\LQJWRZRUNRQDUHIHUUDO EDVH,W·VYHU\UHZDUGLQJRQFH\RXJHWLQWR LWDQG,WKLQNPRVWSHRSOHDUHKDSS\RQFH WKH\VHHWKHFRPPLVVLRQVFRPLQJEDFN :KDWGR\RXVHHDVXSFRPLQJWUHQGV IRUWKH:LVFRQVLQUHDOHVWDWHLQGXVWU\" &+,WKLQNLW·VJRLQJWREHDJRRG \HDU³SHRSOH·VFRQÀGHQFHZLOOFRPHEDFN DQGWKHHFRQRP\ZLOOLPSURYH+DYLQJ VDLGWKDW,WKLQNUHDOHVWDWHZLOOEHRIIÀYH WRVHYHQSHUFHQW,WKLQNLQWHUHVWUDWHVZLOO VWD\DVWKH\DUH,GRQ·WVHHPRUWJDJHUDWHV :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ JRLQJRYHUSHUFHQW,WKLQNWKDWLQUHF UHDWLRQDODUHDVOLNH,·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·V DOZD\VWKHSRVVLELOLW\WKDWVRPHQDWLRQDO EXVLQHVVFRXOGFRPHLQDQGEX\XSRQHRI RXUODUJHUFRPSDQLHVLQ:LVFRQVLQ $IWHUVHUYLQJIRUVRPHWLPHLQ:5$ OHDGHUVKLSZKDWGR\RXVHHLQWKH :5$·VIXWXUH" &+2QHWKLQJWKDW,·PYHU\FRQFHUQHG DERXWLVWKHDJHRIWKHOHDGHUVKLSRIWKH :5$:HQHHG\RXQJHUSHRSOHJHWWLQJ LQYROYHG2EYLRXVO\LWWDNHVWLPHDZD\ IURPWKHEXVLQHVVEXWWKHUHDUHDORWRI EHQHÀWVWKDWFRPHDORQJZLWKLW<RXJHWD ORWPRUHNQRZOHGJHDERXWZKDW·VJRLQJRQ LQWKHLQGXVWU\DQG\RXEXLOGXSDUHIHUUDO EDVHZLWKDOOWKHSHRSOH\RXPHHWEXWWKH PRVWLPSRUWDQWWKLQJLVWKDW\RXJHWWR JLYHVRPHWKLQJEDFNWRWKHLQGXVWU\WKDW KDVJLYHQ\RXVRPXFK 2QHQDPHLVPLVVLQJ <RXUV *OINTHEMOSTQUALIFIED REFERRALNETWORKIN RESIDENTIALREALESTATE )TSTOUGHTOBUILDANAMEINREALESTATE"UT WHENYOUEARNTHE#ERTIFIED2ESIDENTIAL 3PECIALIST$ESIGNATION#23YOURNAME BECOMESSYNONYMOUSWITHPROFESSIONALAND RELIABLESERVICE)TALSOGETSLISTEDINTHE#23 -EMBERSHIP2EFERRAL$IRECTORYWHICHISSENTTO NEARLYSUCCESSFULAGENTSINALMOSTEVERY 53CITYANDSEVERALINTERNATIONALONES!NDTHAT MEANSTREMENDOUSREFERRALOPPORTUNITIESFORYOU #23ALSOOFFERSANONLINEREFERRALTRACKING SYSTEMANDTHE#23#OURSE"UILDINGAN %XCEPTIONAL#USTOMER3ERVICE2EFERRAL "USINESS!T#23WEUNDERSTANDTHEVALUEOF REFERRALS&INDOUTMOREABOUTTHEVALUEOF#23 ZZZFUVFRP $SSUDLVDO4XHVWLRQV" 6HHWKH([SHUWVDWWKH:5$$SSUDLVDO &RQIHUHQFHRQ0DUFK <RXZLOOKHDU$ODQ+XPPHOH[SODLQWKHWHFKQLTXHV RI´$SSUDLVLQJ+LJK9DOXH+RPHVµDQG´$SSUDLVLQJ 6SHFLDO3XUSRVH3URSHUWLHVµ5LFK+H\Q65$ZLOO WHOO\RXKRZWR´$YRLG/LDELOLW\IRUWKH5HVLGHQWLDO $SSUDLVHUµ2Q0DUFK\RXFDQOHDUQKRZ\RX VKRXOGEH´(YDOXDWLQJ5HVLGHQWLDO&RQVWUXFWLRQµE\ -DPHV&DQHVWDURDQGEDFNE\UHTXHVW5ROI$QGHUVRQ ZLOOHQOLJKWHQ\RXDERXW´7KH7HFKQRORJ\$VVLVWHG $SSUDLVHUµ 5HJLVWHURQOLQHDWZZZZUDRUJ (GXFDWLRQ3URGXFWV $FW4XLFNO\&RPPHUFLDO&(LVRQ)HEDQG0DUFKLQ$SSOHWRQ 7KH:5$DQG5$1: DUHSURYLGLQJUHDOHVWDWH &(FRXUVHVVSHFLÀFDOO\ GHVLJQHGIRUWKHFRPPHUFLDO UHDOHVWDWHOLFHQVHH7KHVH FRXUVHVFRYHULVVXHVUHODWLQJ WRFRPPHUFLDOSUDFWLFH DOORZLQJFRPPHUFLDO EURNHUVWRVWD\FXUUHQWZLWK UHFHQWGHYHORSPHQWVLQWKH LQGXVWU\&(DQGZLOOEH RIIHUHG)HEUXDU\DQG &(&ZLOOEHRIIHUHG 0DUFKDW5$1: $SSOHWRQ:LVFRQVLQ 1HHGDQ$%5(OHFWLYH" 2Q)HEUXDU\WKH:5$ZLOORIIHU´1HJRWLDWLRQ 6NLOOVµDQHZEX\HUDJHQF\5(%$&HOHFWLYH,WZLOOEHKHOG DW:,&3$LQ%URRNÀHOGDQGWDXJKWE\7HUU\:DWVRQ7KLV RQHGD\SURJUDPPHHWVWKH$%5HOHFWLYHFRXUVHUHTXLUH PHQW,WFRYHUVDEURDGUDQJHRIWRSLFVUHJDUGLQJQHJRWLDWLRQ VNLOOVLQFOXGLQJ 2YHUYLHZRI1HJRWLDWLRQV 3RVLWLRQDO%DUJDLQLQJDQG,QWHUHVW%DVHG1HJRWLDWLQJ 9DOXH1HJRWLDWLQJ 1HJRWLDWLQJ6NLOOV (YDOXDWLQJ1HJRWLDWHG$JUHHPHQWV :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ QHZVZUDRUJ (GXFDWLRQ3URGXFWV 6DOHVDQG 0DUNHWLQJ0DQDJHPHQW $SSUDLVDO (GXFDWLRQ &DOHQGDU (YHQW 'DWH $SSUDLVDO3UHOLFHQVH /RFDWLRQ 5HJLVWUDWLRQ 3ULFLQJ )HE DPSP 0DGLVRQ SOXVERRNV RU $SSUDLVDO863$3 )HE DPSP 0DGLVRQ SOXVERRNV $SSUDLVDO&RQIHUHQFH 0DU DPSP :LVFRQVLQ'HOOV &DOOIRUGHWDLOV RU $SSUDLVDO&( 0DU DPSP /DV9HJDV 'DWH &RXUVH 3UHOLFHQVH (GXFDWLRQ /RFDWLRQ &DOOIRUGHWDLOV (DUO\5HJ 5HJXODU5HJ )HE 1HJRWLDWLRQHOHFWLYHIRU%X\HU$JHQF\ %URRNÀHOG )HE *5,&RXUVH&56 %DUDERR )HE *5,&RXUVH&56 %DUDERR )HE &56 %DUDERR )HE 65(66HQLRUV5HDO(VWDWH6SHFLDOLVW %DUDERR 0DU 4XLFNVWDUW0RGXOH 0DGLVRQ $SULO 4XLFNVWDUW0RGXOH 0DGLVRQ 'DWH 7LPH &RXUVH 7LPH /RFDWLRQ 5HJXODU5HJ 0DUFK +RXU6DOHV DPSP 0DGLVRQ SOXVERRNV $SULO +RXU%URNHU DPSP 0DGLVRQ SOXVERRNV 0D\ +RXU6DOHV DPSP 0DGLVRQ SOXVERRNV -XO\ +RXU%URNHU DPSP 0DGLVRQ SOXVERRNV 1RQPHPEHUVSD\DQDGGLWLRQDOIHHIRUDOOFRXUVHV )HHXQWLOGD\RIFODVV²DGGLWLRQDOIHHFKDUJHGDWWKHGRRU a$SSUDLVHUVHFWLRQPHPEHUVUHFHLYHDGLVFRXQW *URXSGLVFRXQWLVDYDLODEOH 0XVWEHSRVWPDUNHGRUUHFHLYHGE\:5$GD\VSULRUWRVWDUWRIFODVV )HHIRUDOOIRXUPRGXOHV :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ &RQWLQXLQJ(GXFDWLRQ (GXFDWLRQ3URGXFWV 'DWH &RXUVH 7LPH /RFDWLRQ 5HJLVWUDWLRQ 0HPEHU 1RQ0HPEHU )HE &( DPSP /D&URVVH )HE &( DPSP %URRNÀHOG FRXUVH FRXUVH )HE &RPPHUFLDO&( DPSP $SSOHWRQ FRXUVH FRXUVH )HE &($ DPSP 0DULQHWWH 0DUFK &RPPHUFLDO&(& DPSP $SSOHWRQ FRXUVH FRXUVH 0DUFK &( DPSP %HDYHU'DP 0DUFK &($ DPSP /D&URVVH 0DUFK &(9LGHR DPSP -DQHVYLOOH 0DUFK &($ DPSP %URRNÀ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·VKDUGGULYHWKHSURJUDPFDQEHDFFHVVHG DWDQ\WLPHIURPWKH,QWHUQHW$OOWUDQVDFWLRQVDUHFRP SOHWHGDQGVDYHGRQOLQHDWDFRPPHUFLDOVHUYHUQRGDWD LVVWRUHGRQ\RXUKDUGGULYH)RUPDQGVRIWZDUHXSGDWHV DQGWKHDQQXDOUHQHZDODUHDXWRPDWLF)UHTXHQWO\DVNHG TXHVWLRQVDQGDUHFHQWO\UHYLVHGXVHUPDQXDODUHDYDLODEOH IRU\RXUSHUXVDODVZHOO $QRWKHUZD\WRXVH=LS)RUPLVWKH'HVNWRS9HUVLRQD =LS)RUPSURGXFWWKDWGRHVQRWUHTXLUHJRLQJRQOLQHHDFK WLPHLWLVXVHG7KHHQWLUHSURJUDPUHVLGHVRQWKHXVHU·V KDUGGULYHLQFOXGLQJFRPSOHWHGWUDQVDFWLRQV'HSHQG LQJRQ,QWHUQHWDFFHVVVSHHGGRZQORDGLQJWKHVRIWZDUH WDNHVDSSUR[LPDWHO\PLQXWHV$OOVRIWZDUHDQGIRUP XSGDWHVDUHWKHXVHU·VUHVSRQVLELOLW\+RZHYHUXVHUVPXVW UHQHZWKHLUSURJUDPYLDWKH,QWHUQHWDQQXDOO\2WKHUGHVN WRSRSWLRQVDYDLODEOHLQWKH,QIRUPDWLRQ&HQWHULQFOXGH GRZQORDGLQJDGGLWLRQDOFRSLHVSXUFKDVLQJDQHOHFWURQLF YHUVLRQRIWKH:LVFRQVLQ&ODXVH0DQXDODQGIUHHRQOLQH WUDLQLQJ 6RPHWLPHVDFFHVVWRDFRPSXWHULVLPSRVVLEOH,QVXFK VLWXDWLRQV=LS)RUPIRU3DOP26PD\EH\RXUIRUPVWRRO 6ROGVHSDUDWHO\E\=LS)RUP=LS)RUPIRU3DOP26DOORZV DJHQWVWRXVHWKHLUKDQGKHOGGHYLFHWRFUHDWHHGLWDQG GHOHWHPXOWLSOHWUDQVDFWLRQVZKLFKWKH\PD\WKHQV\QFWR =LS)RUP2YHUÀ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²<RX+DYH2SWLRQV 6WXGLHVFRQVLVWHQWO\VKRZWKDWWKHPRUHNQRZOHGJHDEOH UHDOHVWDWHDJHQWVHDUQPRUHPRQH\DQGKDYHPRUHVXFFHVV IXOORQJWHUPFDUHHUV7RHDUQD*5,GHVLJQDWLRQ\RXPXVW FRPSOHWHWKUHHGD\FRXUVHV*5,DQGDQGSDVVDQ H[DPRQHDFKFRXUVH7KHUHDUHVHYHUDORSWLRQVIRUFRPSOHW LQJ*5,&RXUVH v 3DVVWKHRQOLQHYHUVLRQRIWKH*5,&RXUVH(TXLYDOHQF\ ([DP5HJLVWHUIRUWKHH[DPDQG\RXFDQFRPSOHWHLWRQ WKH,QWHUQHW&RVWLV v &RPSOHWHWKHGD\VRI4XLFNVWDUWDQGSDVVH[DP v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¿OH <RXPXVWWKHQSDVVWKHVWDWH H[DPLQDWLRQ 0LVVLQJ2XW" (GXFDWLRQ5HJLVWUDWLRQ)RUP &217$&7,1)250$7,21 1DPH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB )LUPQDPH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $GGUHVVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB &LW\ BBBBBBBBBBBBBBBBBBBBBB 6WDWH BBBBBBB =LS BBBBBBBBBBB 3KRQH:BBBBBBBBBBBBBBBBBBBBBB +BBBBBBBBBBBBBBBBBBBB HPDLODGGUHVVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 66RU:5$PHPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB '$7(6$1')((6)LOOLQLQIRUPDWLRQIRUFRXUVHDWWHQGLQJ &RXUVHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB /RFDWLRQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 3$<0(17 7RWDOBBBBBBBB O(QFORVHGLVP\FKHFNPDGHSD\DEOHWRWKH:5$ O&KDUJHP\9,6$0DVWHU&DUGFLUFOHRQH &DUGQXPEHUBBBBBBBBBBBBBBBBBBBBBBBBB ([SGDWH BBBBBBBB 5HJLVWHUE\0DLO :,6&216,15($/7256$662&,$7,21 )RUHVW5XQ5RDG6XLWH 0DGLVRQ:, 5HJLVWHUE\3KRQHRU 5HJLVWHUE\)D[ <RXUDGFRXOGEHKHUH &DOORXUDGYHUWLVLQJGHSDUWPHQWDW :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ 2QOLQH5HJLVWUDWLRQZZZZUDRUJ &$1&(//$7,2132/,&<7KH:5$UHVHUYHVWKHULJKWWRFDQFHO DFRXUVHLIQRWILOOHG&DQFHOODWLRQVPXVWEHPDGHLQZULWLQJ SULRUWRWKHVWDUWRIWKHFRXUVHDQGZLOOEHUHIXQGHGPLQXVD DGPLQLVWUDWLYHIHH5HJLVWUDWLRQVFDQQRWEHWUDQVIHUUHGIURP SHUVRQWRSHUVRQ 5($/725 5HIHUUDO 1RWDOOUHIHUUDOV UHVXOWLQDUHIHUUDOIHH +DYHFRQILGHQFHNQRZLQJWKDW\RXUEX\HUuVRU VHOOHUuVUHIHUUDOWR$SSOHWRQDQGWKH)R[&LWLHV DUHDZLOOKDYHDJUHDWUHVXOW.DUOLVWKH &ROGZHOO%DQNHUDJHQWLQ:LVFRQVLQ 0LVVLQJ2XW" &DOOv&RUN\w+HOO\HU&5%&56 <RXUDGFRXOGEHKHUH 6HUYLQJ$SSOHWRQ1HHQDK0HQDVKD*UHHQYLOOH'DUER\ .LPEHUO\.DXNDXQD+RUWRQYLOOHDQGVXUURXQGLQJDUHDV _ NDUOYRONPDQFRP &DOORXUDGYHUWLVLQJGHSDUWPHQWDW _ NDUOYRONPDQFRP 32%R[y%D\VKRUH'ULYH6LVWHU%D\ :, FRUN\#SURSHUW\GRRUFRP 9LVLW P\ZHEVLWHZZZFRUN\KHOO\HUFRP 7+(5($/(67$7(*5283 %HWWHU*HWD4XLFNVWDUW $V\RXVWDUWWRUHFUXLWGRQ¶WIRUJHWWRVHQG\RXUQHZDJHQWVWRWKHGD\4XLFN6WDUW 3URJUDPRIIHUHGLQWZRGD\VHVVLRQV&RXUVHFRQWHQWVLQFOXGH3URVSHFWLQJ ±ZRUNLQJZLWK)6%2DQGH[SLUHGOLVWLQJIDUPLQJ$GYHUWLVLQJ±WHFKQRORJ\WRROV FUHDWLQJDEXVLQHVVSODQWLPHPDQDJHPHQW'HYHORSLQJ3HRSOH6NLOOV±OLVWLQJ SUHVHQWDWLRQVRYHUFRPLQJVHOOHUREMHFWLRQV:RUNLQJZLWK%X\HUV±EX\HUDJHQF\ SURFXULQJFDXVHFORVLQJ WHFKQLTXHVSOXVPXFK PRUH0RGXOHVZLOO EHRIIHUHGRQ)HEUXDU\ DQG0RGXOHV ZLOOEHRIIHUHG 0DUFKDWWKH :5$0DGLVRQ8SRQ FRPSOHWLRQRIWKHIRXU PRGXOHVDJHQWVFDQWDNHD *5,&RXUVH(TXLYDOHQF\ ([DP)HHLVRQO\ KRZHYHUWKH:5$RIIHUVD QHZ0HPEHU'LVFRXQWRI ±&RVWRIWKLVFRXUVH LVRQO\7KLVLVD IDQWDVWLFSULFHIRUGD\V RILQVWUXFWLRQIRU\RXUQHZ DJHQWV $OOR#OUNTY2EFERRALS 6DOHV 3UHOLFHQVH 7RREWDLQDUHDOHVWDWHOLFHQVHLQ WKHVWDWHRI:LVFRQVLQ\RXPXVW ¿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ÁXFWXDWLRQVLQWD[UHYHQXHV7KHOHJLV ODWLRQDOVRSURYLGHVWKDWWKHOLPLWVFDQ EHH[FHHGHGE\YRWHUVWKURXJKSDVVDJH RIDUHIHUHQGXP %<0,&+$(/7+(2$1' 5,&.&+$1'/(5 : HKDYHKLJKWD[HVLQ :LVFRQVLQEXWZHDOVRKDYH DKLJKOHYHORIJRYHUQPHQW VHUYLFHVDVDUHVXOW%HFDXVHZHVSHQG DQGWD[DERYHWKHQDWLRQDODYHUDJH ZKLOHRXULQFRPHVDUHEHORZDYHUDJH :LVFRQVLQKDVDV\VWHPLF´WD[WHQVLRQµ ZKLFKIXHOVDQRQJRLQJGHEDWHRYHU KRZZHWD[DQGVSHQG 7KLVGHEDWHLVDERXWWRFRPHLQWR VKDUSHUIRFXVRYHUWKHQH[WVHYHUDO PRQWKVDVWKHVWDWH/HJLVODWXUHVHHPV SRLVHGWRVHULRXVO\FRQVLGHU$VVHPEO\ -RLQW5HVROXWLRQOHJLVODWLRQFDOOLQJ IRUDFRQVWLWXWLRQDODPHQGPHQWWR SHUPDQHQWO\OLPLWVWDWHDQGORFDO JRYHUQPHQWWD[LQJDQGVSHQGLQJ 8QGHU$-5NQRZQDV7KH7D[SD\ HUV%LOORI5LJKWVRU7$%25VWDWHDQG VFKRROGLVWULFWVSHQGLQJLVFDSSHGDW WKHSULRU\HDU·VEXGJHWSOXVWKHUDWHRI LQÁDWLRQSOXVSRSXODWLRQRUHQUROO PHQWJURZWK6SHQGLQJE\FRXQWLHV DQGPXQLFLSDOLWLHVZRXOGEHOLPLWHGWR WKHSULRU\HDU·VEXGJHWSOXVWKHUDWHRI LQÁDWLRQSOXVWKHSHUFHQWDJHJURZWK GXHWRQHZFRQVWUXFWLRQ$-5DOVR HVWDEOLVKHVD´UDLQ\GD\IXQGµDQGDQ 7KH:LVFRQVLQ5($/7256$V VRFLDWLRQLVFORVHO\VFUXWLQL]LQJWKLV SURSRVDO:KLOHZHVXSSRUWUHDVRQDEOH VSHQGLQJDQGWD[OLPLWVLQ:LVFRQVLQ DQGWKHUHIRUHVXSSRUWWKHLQWHQWRI $VVHPEO\-RLQW5HVROXWLRQWKHUH UHPDLQVPDQ\TXHVWLRQVUHJDUGLQJ WKHLPSDFWVXFKOLPLWVFRXOGKDYHRQ IXWXUHUHDOHVWDWHPDUNHWVDQGHFR QRPLFJURZWKPDUNHWV$VFXUUHQWO\ GUDIWHG$-5UHTXLUHVPRGLÀFDWLRQV WRSURWHFWVWDWHDQGORFDOJRYHUQPHQW SURJUDPVDQGRSHUDWLRQVWKDWSURPRWH HFRQRPLFGHYHORSPHQWDQGJURZWK :HDUHFRPPLWWHGWRZRUNLQJZLWK WKHUHVROXWLRQ·VDXWKRUVDQGRWKHUVWR PDNHWKHVHQHFHVVDU\FKDQJHV 3ODFLQJFRQVWLWXWLRQDOOLPLWVRQWD[LQJ DQGVSHQGLQJZLOOEHWKHPRVWLPSRU WDQWSXEOLFSROLF\GHEDWH:LVFRQVLQ KDVKDGLQPDQ\\HDUV$-5UDLVHV LVVXHVEH\RQGWD[LQJDQGVSHQG LQJSROLF\WRLQFOXGH FRQVLGHUDWLRQRIZKDW NLQGRIDGHPRFUDF\ ZHZDQWLQ:LVFRQ VLQ,WUDLVHVLVVXHV GHDOLQJZLWKKRZ PXFKSRZHUZH·UH ZLOOLQJWRJLYHWRRXU HOHFWHGRIÀFLDOVDQG KRZPXFKZHZDQW WRUHVHUYHIRUWKH YRWHUV)XUWKHUPRUH LWUDLVHVLVVXHVDVWR KRZSUHVFULSWLYHZH ZDQWRXUFRQVWLWXWLRQ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ QHZVZUDRUJ DQGRURXUVWDWXWHV $V\RXUHDGDERXWWKLVGHEDWHRYHUWKH QH[WIHZPRQWKVLW·VLPSRUWDQW5($/ 7256UHPDLQLQIRUPHGSDUWLFLSDQWV 7RZDUGWKDWHQGKHUH·VVRPHEDFN JURXQGWRFRQVLGHU %DFNJURXQG :KLOHSURJUHVVKDVEHHQPDGHLQ UHFHQW\HDUVWREULQJ:LVFRQVLQ·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·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Á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ÀFXOWDQGFRVWO\WRGRERQGLQJSRWHQ WLDOO\LPSHGLQJERQGLQJIRUHFRQRPLF GHYHORSPHQWSURMHFWVLQFOXGLQJWD[ LQFUHPHQWDOÀQDQFLQJSURMHFWV(YHQLI ERQGLQJZDVQRWVXEMHFWWRUHIHUHQGXP DSSURYDOEXWGHEWVHUYLFHSD\PHQWV ZHUHWKHUHZRXOGEHFRQFHUQVDPRQJ ERQGFRXQVHODQGUDWLQJDJHQFLHV UHTXLULQJDQLUUHSHDODEOHOHY\WRSD\ GHEWVHUYLFH$WWKHVWDWHOHYHOFRQFHUQV ZLOOEHUDLVHGWKDWUHTXLULQJUHIHUHQGXP DSSURYDOIRUDOOERQGLQJLVFXPEHUVRPH DQGLQDSSURSULDWH $-5PXVWSDVVWZRVXFFHVVLYH VHVVLRQVRIWKHOHJLVODWXUHDQGWKHQ UHFHLYHDSSURYDOE\YRWHUVRQDVWDWH ZLGHEDOORW7KLVLVWKHOHJLVODWXUH·V ÀUVWFRQVLGHUDWLRQRIWKHPHDVXUH7KH HDUOLHVWYRWHUVFRXOGEHDVNHGWRUDWLI\ WKHVHOLPLWVZRXOGEHWKH1RYHPEHU HOHFWLRQ²DJXEHUQDWRULDOHOHFWLRQ \HDULQ:LVFRQVLQ :KLOHPRVW5($/7256DQGDYHUDJH FLWL]HQVEHOLHYHDUHDVRQDEOHOLPLWRQ WD[LQJDQGVSHQGLQJLVSUREDEO\D JRRGWKLQJH[DFWO\KRZWKHVHOLPLWV DUHGUDIWHGEHFRPHFUXFLDO7KHNH\ QHZFRQVWUXFWLRQDQGLPSURYHPHQWV LVWREDODQFHRXUVSHQGLQJZLWKRXU &RQFHUQV 7KHJRDOLVWRSURYLGHDQLQFHQWLYH WD[HVDQGEDODQFHRXUWD[HVZLWKWKH 6LQFHVWDWHDQGORFDOÀQDQFHVDUH IRUORFDOFRPPXQLWLHVWRHQFRXUDJH WD[SD\HUV·DELOLW\WRSD\:KLOHWKDW·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´WKH-RE&UHDWLRQ$FWµ LVGHVLJQHGWRLPSURYH:LVFRQVLQ·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·VLPSDFW RQUHODWHGEXVLQHVVHV5($/7256 KRZHYHUZLOOOLNHO\EHQHÀWPRVWIURP WKHFKDQJHVWRWKHZDWHUSHUPLWWLQJ UHTXLUHPHQWV %DFNJURXQG 8QGHU:LVFRQVLQ·V1DYLJDEOH:DWHU /DZ&KDSWHURIWKH:LVFRQVLQ 6WDWXWHVPRVWFRQVWUXFWLRQQHDU QDYLJDEOHZDWHUZD\VUHTXLUHDSHUPLW IURPRXUVWDWH·V'HSDUWPHQWRI1DWXUDO 5HVRXUFHV7KHVHFRQVWUXFWLRQDFWLYLWLHV LQFOXGHWKHEXLOGLQJRUSODFHPHQWRI VWUXFWXUHVFXOYHUWVEULGJHVDQGPRVW VKRUHOLQHSURWHFWLRQSUDFWLFHVURFN ULSUDSÀEHUORJVHWF &KDSWHUKRZHYHUKDVQRWEHHQ VLJQLÀFDQWO\UHYLVHGZLWKLQWKHODVW \HDUV$FFRUGLQJO\PDQ\RIWKH UHJXODWLRQVDUHRXWGDWHGDQGGRQ·W WDNHLQWRDFFRXQWPRGHUQFRQVWUXFWLRQ SUDFWLFHVDQGSURFHGXUHV%HFDXVH&K SHUPLWVDUHQRZUHTXLUHGIRUPRVW DFWLYLWLHVQHDURXUVWDWH·VZDWHUZD\V RYHUSHUPLWVDUHDSSOLHGIRUHDFK \HDUFDXVLQJGHOD\VDQGEDFNXSVLQWKH SHUPLWWLQJSURFHVV6LPSOHSHUPLWVVXFK DVLQVWDOOLQJDFXOYHUWIRUDGULYHZD\ RUUHSODFLQJDIHZURFNVLQVKRUHOLQH ULSUDSFDQWDNHVHYHUDOPRQWKV$OORI WKHVHGHOD\VFDQDGGVLJQLÀFDQWFRVWVWR HFRQRPLFGHYHORSPHQWSURMHFWVDOORYHU WKHVWDWH ,QDGGLWLRQWRWKHGHOD\VSHUPLW DSSOLFDQWVRIWHQH[SHULHQFHFRQVLGHU DEOHFRQIXVLRQDQGIUXVWUDWLRQGXHWR &K·VRYHUODSZLWKRWKHUUHJXODWRU\ SURJUDPVDQGWKHDEVHQFHRIFOHDU VWDQGDUGV6LQFH:LVFRQVLQ·V1DYLJDEOH :DWHU/DZZDVDGRSWHGLQWKHV DQXPEHURIRWKHUIHGHUDOVWDWHDQG ORFDOUHJXODWLRQVKDYHEHHQGHYHORSHG WRSURWHFWRXUZDWHUZD\V$VDUHVXOW SURSHUW\RZQHUVDUHRIWHQVXEMHFWWR QXPHURXVRYHUODSSLQJUHJXODWLRQV HDFKZLWKGLIIHUHQWVWDQGDUGVDQGWKHLU RZQGLVWLQFWSHUPLWWLQJSURFHVV)RU H[DPSOHJUDGLQJQHDUDZDWHUZD\LV VXEMHFWWRHOHYHQGLIIHUHQWIHGHUDOVWDWH DQGORFDOUHJXODWLRQV)XUWKHUPRUH PDQ\RIWKHVWDQGDUGVDQGWHUPLQRORJ\ DUHXQGHÀQHGLQWKHUHJXODWLRQVDQG KDYHEHHQOHIWWRDJHQF\LQWHUSUHWDWLRQ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ 7KH%HQHILWVRI´7KH -RE&UHDWLRQ$FWµ 7KH-RE&UHDWLRQ$FWDWWHPSWVWRXS GDWH:LVFRQVLQ·V1DYLJDEOH:DWHU /DZE\PDNLQJWKHSHUPLWWLQJSUR FHVVPRUHHIÀFLHQWDQGSUHGLFWDEOH IRUSURSHUW\RZQHUV6SHFLÀFDOO\ WKHOHJLVODWLRQGRHVWKLVE\ 'HÀQLQJ.H\7HUPVDQG 6WDQGDUGV&UHDWHVFKHFNOLVWV WKDWRXWOLQHSHUPLWUHTXLUHPHQWV DQGGHÀQHLPSRUWDQWWHUPVVXFK DV´EDQNµZKLFKGHWHUPLQHV ZKHQVRPHJUDGLQJSHUPLWVDUH QHFHVVDU\ ([SHGLWLQJWKH3HUPLWWLQJ 3URFHVV0RGLÀHVWKHWLPHOLPLWV IRUWKH'15WRLVVXHSHUPLWV IRUYDULRXVDFWLYLWLHVLQFOXGLQJ JUDGLQJDQGGUHGJLQJ$OVRDX WKRUL]HVWKH'15WRLVVXHJHQHUDO SHUPLWVIRUFHUWDLQDFWLYLWLHVWKDW SUHYLRXVO\UHTXLUHGLQGLYLGXDO SHUPLWVZKLFKZLOOEHOHVVWLPH FRQVXPLQJDQGPRUHFRVWHIIHF WLYHIRUSHUPLWDSSOLFDQWV (OLPLQDWLQJ2YHUODSZLWK2WKHU 5HJXODWLRQV(OLPLQDWHVWKHSHU PLWWLQJUHTXLUHPHQWVIRUFHUWDLQ DFWLYLWLHVXQGHU&KLIWKRVH DFWLYLWLHVDUHDGHTXDWHO\UHJXODWHG HOVHZKHUH 0RGLI\LQJWKH$GPLQLVWUDWLYH DQG-XGLFLDO5HYLHZ3URFHVV5H ODWHGWR'153HUPLW'HFLVLRQV ²$XWKRUL]HVSHUPLWDSSOLFDQWVWR UHTXHVWDQDGPLQLVWUDWLYHKHDULQJ UHJDUGLQJLVVXDQFHGHQLDORU PRGLÀFDWLRQRIDSHUPLW 3XEOLF3ROLF\ )DPLO\)HXG %<-2(0855$< - XVWZKHQ LWVHHPHG SRVVLEOH IRUVRPHORQJ RYHUGXHFLYLOLW\ WRWDNHURRWLQ WKH6WDWH&DSL WRO'HPRFUDWLF *RYHUQRU-LP 'R\OHGLVFRYHUHGKHKDVPRUHWR FRQWHQGZLWKWKDQDIHLVW\5HSXEOLFDQ PDMRULW\LQWKH/HJLVODWXUH6WDWH $WWRUQH\*HQHUDO3HJ/DXWHQVFKODJHU DQGHQYLURQPHQWDODFWLYLVWVDURXQG WKHVWDWHEODVWHG'R\OHIRUKLVFRP SURPLVHZLWK5HSXEOLFDQVRQWKH´-RE &UHDWLRQ$FWµ 7KHFRPSURPLVHUHDFKHGEHWZHHQ 'R\OHDQG5HSXEOLFDQVLVLQWHQGHGWR UHIRUPWKHVWDWH·VZHOOGHVHUYHGUHSXWD WLRQDVDUHJXODWRU\EDWWOHJURXQGZKHQ LWFRPHVWRWKHSHUPLWWLQJSURFHVV $IWHUVRPHLQLWLDOGLVDJUHHPHQW'R\OH DQGWKH*23DJUHHGWRVWUHDPOLQHWKH SHUPLWWLQJSURFHVVLQZD\VWKDWZRXOG HQFRXUDJHEXVLQHVVJURZWKDQGH[SDQ VLRQDQGSURWHFWWKHHQYLURQPHQW +RZHYHUZKHQWKHHQYLURQPHQWDO FRPPXQLW\FRXOGQ·WJHWWKHLUZD\ ZLWK'R\OHRQFKDQJHVWRWKHSDFNDJH RIUHJXODWRU\UHIRUPVWKH\IRXQGD V\PSDWKHWLFHDUZLWKWKH:LVFRQVLQ DWWRUQH\JHQHUDO·VRIÀFH,QDOHWWHUWR OHJLVODWRUV$WWRUQH\*HQHUDO/DXWHQ VFKODJHUKDPPHUHGWKHFRPSURPLVHE\ VD\LQJWKHSDFNDJH´FRQWDLQVVLJQLÀFDQW FKDQJHVLQWKHODZWKDWUHSUHVHQWV VXEVWDQWLDOZHDNHQLQJRIHQYLURQ PHQWDOVWDQGDUGVWKDWKDYHSURWHFWHG :LVFRQVLQ·VZDWHUZD\VDQGDLUTXDOLW\ IRUGHFDGHVµ *RYHUQRU'R\OHUHVSRQGHGE\GHIHQG LQJWKHFRPSURPLVHSDFNDJHDVDZD\ WRPDNHHQYLURQPHQWDOUHJXODWLRQV HDVLHUWRXQGHUVWDQGZLWKRXWUHGXFLQJ HQYLURQPHQWDOSURWHFWLRQV7KHQ'R\OH JRWWRWKHFUX[RIWKHLVVXHE\VWDWLQJ WKHREYLRXVWRDQ\RQHZKRKDVHYHU GHDOWZLWKWKHSHUPLWWLQJSURFHVVLQ :LVFRQVLQ´:HFDQHQIRUFHRXUVWDQ GDUGVZLWKRXWWDNLQJ\HDUVWRGRLWµ (YHQWKRXJKWKHOHJLVODWXUHKDVDS SURYHGWKH$FWZLWKRYHUZKHOPLQJEL SDUWLVDQVXSSRUWDQGWKHJRYHUQRUKDV VLJQHGWKHELOOLQWRODZWKHVWRU\LVQ·W RYHU\HW(QYLURQPHQWDOLVWVDUHSURPLV LQJDODZVXLWRYHUWKHQHZSHUPLWWLQJ UHIRUPVDQG'HPRFUDW/DXWHQVFKODJHU LVKLQWLQJVKHPD\GHFLGHQRWWRGHIHQG WKHODZDV:LVFRQVLQ·VDWWRUQH\JHQHUDO ,I'R\OHLVIRUFHGWRKLUHRXWVLGHOHJDO FRXQFLOWRGHIHQGDSDFNDJHRIUHIRUPV QHJRWLDWHGEHWZHHQKLPVHOIDQGWKH 5HSXEOLFDQFRQWUROOHGOHJLVODWXUH SROLWLFDOLQVLGHUVZLOOVSHFXODWHRQZKDW WKHSRWHQWLDO'R\OH/DXWHQVFKODJHUVSOLW PHDQVIRUWKHIXWXUH" 3UR%XVLQHVV'R\OH :KHQ-LP'R\OHUDQIRUJRYHUQRULQ KHSURPLVHGKHZRXOG (OLPLQDWHWKHVWDWHEXGJHWGHÀFLW ZLWKRXWUDLVLQJWD[HV (OLPLQDWHVWDWHJRYHUQPHQW MREVRYHUDWZRWHUPJRYHUQRUVKLS 6LJQLQWRODZWKHVLQJOHVDOHVIDFWRU WD[UHIRUP 3URPRWHHFRQRPLFGHYHORSPHQWLQ WKH´QHZHFRQRP\µE\KHOSLQJWR XVKHULQQHZKLJKWHFKDQGLQIRUPD WLRQDJHEXVLQHVVHV )RUWKHPRVWSDUW'R\OHKDVNHSWKLV SURPLVHV$WWKHUHFHQW%XVLQHVV'D\ SURJUDPLQ0DGLVRQ'R\OHUHFLWHGKLV DFFRPSOLVKPHQWVRQWKHVHLVVXHVDQG SOHGJHGKLVFRQWLQXHGVXSSRUWRISUR EXVLQHVVSROLFLHVWRSURPRWHDKHDOWK\ HFRQRPLFIXWXUH %XW'R\OH·VSUREXVLQHVVSROLFLHV KDYHQ·WDOZD\VJRQHRYHUZHOOZLWK VRPHLQKLVSDUW\:KHQ'R\OHVLJQHG WKH´VLQJOHVDOHVµIDFWRUWD[UHIRUPLQWR ODZ0DGLVRQ·V&DSLWRO7LPHVQHZVSDSHU VODPPHGKLVVXSSRUWIRUWKLVFKDQJHDV DQRWKHUJLYHDZD\WRWKHXQGHVHUYLQJ EXVLQHVVFRPPXQLW\ $QG'R\OH·V´QRQHZWD[HVµSURPLVH OHIWPDQ\VWDWHHPSOR\HHXQLRQVKRS SLQJPDGDWKLPIRUVRXQGLQJPRUHOLNH IRUPHU5HSXEOLFDQ*RYHUQRU7RPP\ 7KRPSVRQWKDQWKHÀUVW'HPRFUDW HOHFWHGWRWKHJRYHUQRU·VRIÀ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·VWRSFRS"6RPHFDSLWRO LQVLGHUVDUHDOUHDG\VD\LQJ´$*µ VWDQGVQRWIRU´DWWRUQH\JHQHUDOµEXW IRU´DVSLULQJJRYHUQRUµ ,W·VWRRHDUO\WRPDNHWKHFDVHIRUKHU SROLWLFDOIXWXUHDVDSRVVLEOHFDQGLGDWH IRUJRYHUQRUEXWWKHYHU\SXEOLFGLV DJUHHPHQWRYHUWKH´-RE&UHDWLRQ$FWµ ZLOOJHQHUDWHORWVRIOLYHO\VSHFXODWLRQ ,W·VZRUWKZDWFKLQJ :,6&216,15($/(67$7(0$*$=,1()HEUXDU\ # ) )-%! ($#(# $" (&*' ) ),$'$$"(.#$#! #,) $-()-%!($#(#$"( (&*'))' '$$"(.# ,) $" )' (*''$*#($*# # )"!-'$$"#$)',)%!-'#)( "#)#+$"$'),$#) ('$$"()$ % +'-$##)')# $" #'- *( ( #'( '")!!- # ) %() + (-)($#(#(!)'!)'#("(($##'()'*)*' (#$) %)%,))'$,#"# )"'#'#("(($#$"%#-)($*''(%$#(!)-)$ *%')(-()"($-$*##$-#$'!'!! #'-(*%%!-+!$)$,$' )$$$#$*)"$' +(),,,)!!$" ILUVWWLPH *(7<285 +20(%8<(567+( EHVW PRUWJDJHUDWH ,172:1 &KHFNRXW:+('$ g]c`TW`abQV]WQST]`g]c`TW`abV][S &DOORUJRWRZZZZKHGDFRP
Similar documents
September 9, 2014 Issue 36, Vol. 18
6LQFH WKH &RUSRUDWH 6HUYLFHV &RPPLWWHH 0HHWLQJ ZDV FDQFHOOHGRQFHDJDLQ,ZLOOXVHWKLVRSSRUWXQLW\WRXSGDWH HYHU\RQHRQWKHXSFRPLQJ7RZQ+DOOZKLFKZLOOEHKHOG DWWKH.QLJKWVRI&ROXPEX...
More informationyo ursourceforthel at estreales tat enews
ZLOOEHJLQLPSOHPHQWLQJRXUVWUDWHJLFSODQIRU ,QWKHPHDQWLPHLI\RXKDYHDFRQFHUQDERXWWKHUHDOHVWDWHPDUNHWLQ:LVFRQVLQRU WKHQDWLRQWKDW\RXZRXOGOLNHWKH:5$WRDGGUHVVSOHDVHG...
More informationdlu +rxvlqj - Wisconsin REALTORS® Association
VWDWH7KLVLVDJUHDWRSSRUWXQLW\WRJDLQYDOXDEOHLQVLJKWRQKRXVLQJIRUVHQLRUVFRPSDQLRQ DQLPDOVDQGSUHGDWRU\OHQGLQJ)RUPRUHLQIRUPDWLRQYLVLWZZZZUDRUJ)+&RQI )DLUKRXVLQJLVHVVHQWL...
More informationZOR SHRINERS ANNUAL MEETING
SOXVSDUNLQJWRD3DFNHUIRRWEDOO JDPHWLFNHWVWRD8:IRRWEDOO JDPH LQ D SULYDWH VXLWH ZLWK PH DQG/DG\&DURO%UHZHUWLFNHWV SOXV SUHIHUUHG SDUNLQJ DQG WLFNHWVWRD8:0HQ...
More information