12511317 Step by Step Knife Making by David Boyle

8/6/2019 12511317 Step by Step Knife Making by David Boyle

1/266


2/266


3/266


4/266


5/266


6/266

)RUHZRUG

.QLIHPDNLQJPD\VWULNH\RXDVDFXULRXVHQGHDYRU:LWKVRPDQ\JRRGNQLYHVDYDLODEOH\RXPLJKWDVNZK\ZRXOGDQ\RQHZDQWWRPDNHRQHE\KDQG"

7KDWYHU\TXHVWLRQFRXUVHGWKURXJKP\PLQGZKHQDIULHQGZKRZRUNHGLQWKHRIILFH

QH[WWRPLQHEHJDQWDONLQJWRPHDERXWWKHNQLYHVKHZDVPDNLQJ$OPRVWHYHU\GD\KHZRXOGZRUNWKHZRUGNQLIHLQWRRXUFRQYHUVDWLRQVLQVRPHZD\$QGVDPSOHVRIWKHGLIIHUHQWEODGHVKHZDVPDNLQJZRXOGEHSODFHGFDVXDOO\RQKLVGHVNXVHGDVSDSHUZHLJKWVDQGOHWWHURSHQHUV,ZDVVXUSULVHGE\WKHEHDXW\DQGHVSHFLDOO\WKHXQLTXHQHVVRIWKRVHKDQGPDGHNQLYHV7KH\ZHUHVOHHNDQGJUDFHIXOZLWKDPRUHSHUVRQDODQGPHOORZORRNWKDQFRPPHUFLDONQLYHV,NQHZWKDWP\IULHQGZDVVWULFWO\DEHJLQQHUDWWKLVFUDIW$QGKHKDGQRJUHDWDPRXQWRIH[SHULHQFHLQPHWDORUZRRGZRUNLQJHLWKHU


7/266

3UHIDFH

7KLVLVDERRNZULWWHQE\DEHJLQQHUWRKHOSRWKHUEHJLQQHUVVWDUWRXW7KHPHWKRGVGLVFXVVHGLQWKLVERRNDUHVLPSOHRQHVZKLFKHYHU\NQLIHPDNHUVKRXOGNQRZDERXW$IWHUPDVWHULQJWKHVHWHFKQLTXHV\RXFDQGHYHORSPDQ\RWKHUNQLIHPDNLQJVNLOOV7KHZKROHILHOGRIPRGHUQPHWDOOXUJ\RIIHUVRSSRUWXQLWLHVWRGHYHORSILQHUDQGILQHUEODGHV.QLYHVFDQDOVR

EHFRQVLGHUHGXVHIXOMHZHOU\DQG\RXFDQSXUVXHDGYDQFHPHQWLQWKLVDUHDDFFRUGLQJWR\RXUDHVWKHWLFVHQVLWLYLWLHV,DPFRQVWDQWO\FKDQJLQJDQGLPSURYLQJP\RZQFUDIW,WVHHPVWKDWHYHU\QHZ

EDWFKRINQLYHVLVQRWLFHDEO\LPSURYHGRYHULWVSUHGHFHVVRU,KDYHQRLGHDZKDWP\NQLYHVZLOOEHOLNHLQD\HDURUWZRRUWKUHH7KXVIRUPHDWOHDVWNQLIHPDNLQJLVJURZWKLWVHOI)UDQFLQH0DUWLQKHOSVPHLQHYHU\ZD\DQGKDVEHHQDPDMRUIDFWRULQP\NQLIHFUDIWDVZHOODVZLWKWKHERRNLWVHOI6KHDOVRKDVGRQHPRVWRIWKHHWFKLQJVRIP\NQLYHVKHOSHGJXLGHRXURWKHUDUWLVWVDQGKHOSHGWRGHYHORSRXUEXVLQHVV

'HQQLV%RGHZLW]P\IHOORZNQLIHPDNHULVJUHDWWRZRUNZLWKDQGFRQVWDQWO\XSJUDGHVWKHTXDOLW\RIRXUNQLYHV.QLIHPDNLQJLVJURZWKIRUKLPDOVR

5RVHPDULH0DQORYHKDVW\SHGDQGSURRIUHDGWKHPDQXVFULSWPDNLQJDEHDXWLIXOFRS\IURPDWDQJOHGPDVVRIVFULEEOHV:KDWZRXOGZHKDYHGRQH"5RVHPDU\%DOVOH\KDVW\SHGWKHODWHUDGGLWLRQVWRWKHPDQXVFULSW%UXFH7DQQHUKHOSHGGHYHORSRXUVKHDWKPDNLQJWHFKQLTXH/HVOLH.QRZOWRQGHYHORSHGDQGSULQWHGP\SKRWRV7KHVHDUHPRVWO\VKHDWKPDNLQJSKRWRVDQGSLFWXUHVRINQLYHV)UDQNOLQ$YHU\DOVRWRRNVRPHRIWKHSLFWXUHVRINQLYHV*UDQW+HLGULFKSKRWRJUDSKHGPRVWRIWKHNQLIHPDNLQJSURFHVVVKRWV

7KHHWFKLQJVRQWKHNQLYHVVKRZQLQWKLVERRNZHUHGRQHE\)UDQFLQH0DUWLQ-HVVLH2VWHU-R\FH6LHUUDDQG$QGUD5XGROI

,QWURGXFWLRQ

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

TXLWHDQRWKHUWRPDNHNQLYHVHYHU\ZRUNLQJGD\DVDPHDQVRIOLYHOLKRRG$ZKROHQHZVHWRIVNLOOVLVUHTXLUHGIRUWKHSURGXFWLRQRIDODUJHHQRXJKQXPEHURILQGLYLGXDOO\FUDIWHGNQLYHVWREHDEOHWRHDUQDOLYLQJ

3ULRUWRWKLVFHQWXU\WKHDUWRIPDNLQJJRRGNQLYHVDQGVZRUGVZDVDPDWWHURIJUHDWVRFLDOLPSRUWDQFH7KHSURGXFWLRQRIKLJKTXDOLW\EODGHVZDVDQHVVHQWLDODVSHFWRIZHDSRQU\DQGDJRRGVZRUGRQWKHEDWWOHILHOGZDVVWULFWO\DPDWWHURIOLIHDQGGHDWK7KHHIIHFWLYHQHVVRIJRYHUQPHQWVDQGDUPLHVZDVGHSHQGHQWXSRQWKLVDUW%HFDXVHRIWKH


8/266

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

PHWKRGVRIPDNLQJJRRGEODGHVDUHHVRWHULFDQGVRPHKRZEH\RQGWKHPDQGWKHPHPEHUVRIWKHSURIHVVLRQVXEWO\UHLQIRUFLQJWKLVJHQHUDODWWLWXGH3HUKDSVKHUHZHFDQDFFRXQWIRUVRPHRIWKHGLVSDULW\EHWZHHQWKHVXSSO\DQGGHPDQGIRUKDQGPDGHNQLYHV

:KHWKHURUQRWWKLVLVDOZD\VWUXHRQHWKLQJLVFHUWDLQLWWDNHVDORWRIKDUGZRUNWROHDUQWRPDNHRQHJRRGNQLIHDQGRQFH\RXNQRZKRZLWLVVWLOODORWRIZRUNWRPDNHRQHJRRGNQLIH

6RQRZZHFRPHWRWKHTXHVWLRQRIWKHKRXUZK\ERWKHU"7KHPRVWGLUHFWDQVZHULVWKDWLWLVSRVVLEOHWRPDNHNQLYHVWKDWDUHWHFKQLFDOO\VXSHULRUWRWKRVH\RXFDQEX\LQWKHVWRUHSURYLGHG\RXKDYHDYHU\JRRGSLHFHRIVWHHOWRVWDUWZLWKRUWKHSURSHUPHWDOVWRVPHOWHUDQGWKDW\RXKDYHWKHSURSHUWHFKQLTXHVDQGVNLOOV%XWWHFKQLFDOVXSHULRULW\LVQRWWKHPDMRUUHDVRQZK\SHRSOHKDQGPDNHNQLYHVQRULVLWZK\SHRSOHDUHZLOOLQJWRSD\UDWKHU

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

$NQLIHLVILUVWDWRRO%XWLILWLVDOVREHDXWLIXODQGFRQWDLQVZLWKLQLWVYLEUDWRU\

VWUXFWXUHWKHORYHRILWVPDNHUWKHQWKLVORYHLVSXWLQWRWKHIRRGZHHDWDQGLQWRWKHZRUNZHGR7KLVFRQVWDQWVXEWOHUHPLQGHURIORYHLQDVVRFLDWLRQZLWKWKHGDLO\IRRGDQGZRUNFDQLQIXVHDVSLULWXDOZDUPWKLQWROLIHWKDWRWKHUZLVHPLJKWKDYHEHHQRIDQLPSHUVRQDOPHFKDQLFDOQDWXUH

:LWKWKLVERRN,DPSUHVHQWLQJVRPHVLPSOHWHFKQLTXHVDQGLQVWUXFWLRQVIRUPDNLQJNQLYHV,DOVRLQFOXGHKHOSIXOLQIRUPDWLRQRQWKHVPDOOVFDOHSURGXFWLRQRIKDQGPDGHNQLYHV


9/266

7RHDVH\RXLQWRNQLIHPDNLQJOHWPHWHOO\RXDOLWWOHDERXWP\RZQH[SHULHQFHVLQVWDUWLQJRXWDVDNQLIHPDNHU,ZLOOWHOO\RXKRZ,PDGHP\ILUVWNQLIHZKLFK,VWLOOXVHDQGKRZ\RXFDQPDNHRQHOLNHLW7KLVSXWVWKHSURFHVVLQWKHVLPSOHVWSRVVLEOHWHUPVDQGZLOOVHUYHDVDVSULQJERDUGIRU\RXWRPRYHLQWRWKHPRUHDUFDQHDVSHFWVRINQLIHPDNLQJMXVWDVLWGLGIRUPH7KH)LUVW.QLIH

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

&KD WHU

6WDUWLQJ2XW


10/266

$WKUHHILQJHUHGLQFKXWLOLW\NQLIHZLWKDOLJQXPYLWDHKDQGOH


11/266

FRXOGPDNHDJRRGNQLIHRXWRIWKDWXVHOHVVVWHHO,KDGDQROG&KLQHVHFKRSSLQJNQLIHWKDW,XVHGLQWKHNLWFKHQDQG,FRQVLGHUHGLWDYDOXDEOHWRROVR,GHFLGHGWRPDNHDNQLIHRIWKDWVW\OH0\&KLQHVHNQLIHKDG D VROLG ZRRGHQ KDQGOH WKDW ZDV DWWDFKHG WR DORQJ VKDQN ZKLFK SURWUXGHG IURP WKH ERG\ RI WKHEODGH,WKDGDIXOOZLGWKRIVWHHOUXQQLQJDOOWKHZD\

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

,FXWRXWWKLVVKDSHDQGZRXQGXSZLWKDEODQN7KHUHZRXOGKDYHWREHVRPHKROHVWKURXJKWKHKDQGOHRUWDQJIRUWKHULYHWVWKDWZRXOGVHFXUHWKHKDQGOH7KDWSRVHGQRSUREOHPWKRXJK,MXVWEOHZVRPHKROHVLQWKHVWHHOZLWKWKHFXWWLQJWRUFK,ZHQWWRZRUNZLWKDEHQFKJULQGHUFOHDQLQJWKHMDJJHGHGJHVOHIWE\WKHFXWWLQJWRUFK,JURXQGWKHP

DZD\VRWKDWWKHVLOKRXHWWHRIWKHNQLIHZDVFRPSOHWHO\FOHDQVKDSHGMXVWWKHZD\,ZDQWHGLW,WRRNDQRWKHUJRRGORRNDWWKHZD\LWZDVJURXQG+RZWKLQLWZDVDQGKRZIDUXSWKHJULQGZHQW,QRWLFHGWKDWWKHEODQNVHGJHDORQJZKHUHLWZDVFXWQRORQJHUKDGDVLOYHUFRORUEXWKDGWXUQHGDEHDXWLIXOEOXHZLWKDQLFHUDLQERZHIIHFW,NQHZWKLVLQGLFDWHGWKDWWKHVWHHOKDGORVWVRPHRILWVWHPSHU


12/266

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

HQRXJK,VKDUSHQHGWKHEODGHRQWKHJULQGHUDQGLPPHGLDWHO\ZHQWLQWRWKHNLWFKHQDQGWULHGRXWWKHEODGHWRVHHLILWZDVWKHULJKWWKLFNQHVV7RP\VXUSULVHWKH&KLQHVHNQLIHZDVPXFKWKLQQHUWKDQWKHRQHWKDW,KDGJURXQGDQGVHHPHGWRFXWPXFKEHWWHUVR,SURFHHGHGWRJULQGWKHEODGHDVWKLQDV,GDUHG)RUWXQDWHO\,GLGQWJULQGLWVRWKLQWKDWLWEHFDPHEULWWOH,WKHQWRRNDORQJORRNDWWKHEODGHZKLFKZDVYHU\URXJKDQGFRDUVHFRYHUHGZLWKKHDY\JULQGLQJOLQHVDQGUXVWSLWVOHIWRYHUIURPLWVSUHYLRXVOLIHDVDUXVW\

VDZEODGH,NQHZ,KDGWRSROLVKWKHEODGHVRPHKRZVR,VWDUWHGZLWKDPHGLXPJUDGHRIVDQGSDSHU$IWHUDERXWDKDOIDQKRXU,UHDOL]HG,ZDVQWJHWWLQJDQ\ZKHUHVR,SXWGRZQWKHVDQGSDSHUDQGSRQGHUHGWKLVODWHVWSUREOHP2EYLRXVO\,QHHGHGVRPHNLQGRIJULQGHUWKDWZDVVPRRWKHUWKDQWKHVWRQHRQWKHEHQFKJULQGHUDQGPRUHSRZHUIXOWKDQKDQGSRZHUHGVDQGSDSHU,ZHQWRQDPLQRUUDPSDJHORRNLQJWKURXJKHYHU\WKLQJRQKDQGXQWLO,FDPHDFURVVDVPDOOHOHFWULFKDQGGULOOZLWKDVDQGLQJDWWDFKPHQW,


13/266

ZHQW GRZQ WR WKH ORFDO FRXQWU\ VWRUHDQG ERXJKW DSDFNHW RI VDQGLQJ GLVFV IRU LW DQG UHVXPHG P\ WDVNZLWKQHZ]HDO7KLVWLPHLWZRUNHG7KHURXJKGLVF,WULHGILUVWVORZO\UHPRYHGWKHEOHPLVKHVEXWOHIWFLUFXODUEOHPLVKHVWKDWZHUHDOPRVWDVXQVLJKWO\7KHDQVZHU

WRWKLVSUREOHPZDVULJKWLQWKHSDFNHWRIVDQGLQJGLVFVDILQHUJULWVDQGLQJGLVF,QDPHUHWZRKRXUV,ZDVDEOHWRUHPRYHDOOWKHXJO\SLWVDQGFRDUVHJULQGLQJPDUNVIURPWKHVLGHRIWKHEODGHE\XVLQJILQHUDQGILQHUJULWV,FOHDQHGWKHKDQGOHDUHDVRLWZRXOGEHFOHDQIRUWKHJOXH:KLOH,ZDVSHUIRUPLQJWKHVHVWHSV,ZDVTXLHWO\ZRQGHULQJKRZ,ZDVJRLQJWRPDNHWKHKDQGOH,GHFLGHGWRPDNHWKHKDQGOHRXWRIDQROGGU\DSSOHEUDQFKWKDWKDGEURNHQIURPDWUHHDERXWWZR\HDUVSUHYLRXVO\,NQHZWKDWZRRGZRXOGEHZHOOVHDVRQHG

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


14/266

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

WRUFKGLGQWPDWFKXSZLWKWKHKROHVLQWKHKDQGOHVODEV7KHREYLRXVDQVZHUZDVWRJOXHRQHVLGHRQILUVWGULOOWKURXJKWKHKROHVFXWLQWKHVWHHOWKHQJOXHWKHRWKHUVODERQDQGGULOOLWIURPWKHVLGHQRZGULOOHGFRUUHFWO\,ZDVDOLWWOHHPEDUUDVVHGWRGULOOWKHKROHVLQWKLVIDVKLRQDWILUVWEHFDXVHLWVHHPHGVRHOHPHQWDU\DQGDZNZDUG%XWGR\RXNQRZWRWKLVGD\,VWLOOGULOOHDFKVODEVHSDUDWHO\WKURXJKWKHKROHVLQWKHVWHHOILUVW,GULOOHGWKHKROHVWKURXJKWKHVODEVLQWKHDERYH

PHQWLRQHGPDQQHUILUVWJOXLQJDQGGULOOLQJRQHVLGHDQGWKHQWKHRWKHU,WWXUQHGRXWWKDWDVVKLQ\DVWKHWDQJORRNHGLWZDVVWLOOFRDWHGZLWKDWKLQOD\HURIRLOSUHYHQWLQJWKHFHPHQWIURPKROGLQJ,RYHUFDPHWKLVOLWWOHVHWEDFNE\XVLQJJDVROLQHDQGDIUHVKFORWKWRFOHDQRIIWKHWDQJDQGWKHLQVLGHRIWKHVODESULRUWRJOXLQJ,XVHGFREEOHUVFHPHQWWRJOXHWKHVODEVWRWKHWDQJZDLWLQJXQWLOLWGULHGWRWDSLQWKHWXELQJSLQV$IWHUDSSO\LQJWKHJOXH,FODPSHGWKHVODEVWLJKWO\


15/266

DJDLQVWWKHWDQJZLWKWZRRUWKUHH&FODPSV

$IWHUWKHJOXHGULHG,UHPRYHGWKHFODPSVDQGURXJKO\VKDSHGWKHKDQGOHXVLQJDUDVS,XVHGDYHU\FRDUVHURXQGHGRIIJULQGLQJZKHHORQWKHEHQFKJULQGHUWRVKDSHP\ILUVWKDQGOHDQGSURJUHVVLYHO\

ILQHUJULWVRIVDQGSDSHUWRILQHILQLVK:KHQ,KDGWKHKDQGOHDERXWWZRWKLUGVILQLVKHG,FDUHIXOO\IODUHGWKHHQGVRIWKHWXELQJSLQVZLWKDSXQFK$WWKLVSRLQW,GLGVRPHWKLQJWKDW,WKRXJKWZDVTXLWHFOHYHU,KDPPHUHGOLWWOHVHFWLRQVRIYHU\KHDY\FRSSHUZLUHLQWRWKHKROHVRIWKHWXELQJSLQVDQGWKHQ,JURXQGWKHPIOXVK,GLGWKLVWRDOOH[FHSWWKHRQHULYHWQHDUHVWWKHEXWWHQGRIWKHKDQGOHZKLFK,OHIWRSHQWRODFHDSLHFHRIOHDWKHUWKURXJK1H[W,EXIIHGWKHHQWLUHNQLIHKDQGOHDQGDOORQDEXIILQJZKHHOZKLFK,SXWRQWKHEHQFKJULQGHU,

XVHGVWDLQOHVVEXIILQJFRPSRXQGZKLFKLVIDVWFXWWLQJIRUVWHHODQGOHDYHVDKLJKFRORURUOXVWUHRQERWKVWHHODQGZRRG$QGILQDOO\,YHU\FDUHIXOO\JURXQGDQHGJHRQWKHEODGHILUVWXVLQJWKHJULQGVWRQHWKHQDQRUGLQDU\NLWFKHQZKHWVWRQH

:KDW,VD*RRG.QLIH"

%HIRUHZHJRDQ\IXUWKHUZHQHHGWRVWHSEDFNDQG ORRN DW WKH ZKROH SKHQRPHQRQ RI NQLYHV DQGSHRSOH$VZLWKDQ\WKLQJWKHUHPXVWEHDVPDQ\GLI

IHUHQWDWWLWXGHVDQGYDOXHVWUXFWXUHVUHJDUGLQJNQLYHVDVWKHUHDUHSHRSOH7KHUHIRUHWKLVERRNFDQRQO\EHRIPD[LPXPYDOXH LI\RXXWLOL]HWKLVLQVLJKWDQGLQIRUPDWLRQ DFFRUGLQJ WR \RXU QHHGV GHVLUHV DQGYDOXHV

.QLYHVRIFRXUVHFDQEHDQ\WKLQJIURPDVKRGG\GLPHVWRUHLWHPWRDSRZHUIXOWRRORUZHDSRQRUDQH[TXLVLWHZRUNRIIXQFWLRQDORUQRQIXQFWLRQDODUW+RZJRRGDQ\NQLIHLVGHSHQGVVROHO\XSRQWKHYDOXHVRIWKHXVHU

7KHPHULWRIDNQLIHLVUHDOO\EDVHGXSRQKRZZHOOLWOLYHVXSWR\RXUH[SHFWDWLRQV


16/266

NQLIHWKDW\RXSDLGWZRGROODUVIRUWHQ\HDUVDJRDQGWKDWKDVKHOGXSZHOOIRULWVFRVWDQG\RXPD\RQWKHRWKHUKDQGGLVOLNHDEHWWHUTXDOLW\NQLIHWKDWLVUHDOO\WRRKHDY\WRFDUU\RUWKDWGRHVQWKROGDQHGJHDVZHOODVLWVKRXOG2U\RXPLJKWSUHIHUDVLPSOHNQLIHZLWKDQROGZRRGHQKDQGOHRYHUDPRGHUQKLJKSHUIRUPDQFH

FRUURVLRQUHVLVWDQWPRGHOWKDWWR\RXDSSHDUVWREHWKHSURGXFW RI D FKURPH DQG FRPSXWHU DJH $QGREYLRXVO\ DQRWKHU NQLIH IDQFLHU FRXOG VHH LW MXVW WKHRWKHUZD\DURXQG

7KHSRLQWLVWKDW\RXWKHXVHURU\RXWKHNQLIHPDNHUDUHWKHXOWLPDWHMXGJH

'HVLJQ7KLVIDFWRULVGLVFXVVHGDWOHQJWKLQFKDSWHU6XIILFHLWWRVD\WKDWDNQLIHVKRXOGORRNEHDXWLIXOWR\RXDQGVKRXOGIHHOFRPIRUWDEOHLQ\RXUKDQGZKHQ\RXXVHLW,WVKRXOGEHVWURQJHQRXJKEXWQRWRYHUO\KHDY\([FHVVZHLJKWLVRQHRIWKHPRVWVXEWOHEXWPRVWWHOOLQJIDXOWVRIPDQ\NQLYHVHVSHFLDOO\WKRVHZKLFKDUHGHVLJQHGWREHFDUULHGHLWKHULQWKHSRFNHWRUDVKHDWK

7KH GHVLJQ RI WKH NQLIH VKRXOG EH VXFK WKDWWKHPRYHPHQWRUIORZRIOLQHVPDVVDQGZHLJKWDVZHOODVWKHSK\VLFDOVWUHQJWKRIWKHPDWHULDOVDQGWKHNHHQQHVVRIWKHHGJHVKRXOGDOOZRUNWRJHWKHUDVDWUDQVPLWWHURIHQHUJ\IURPWKHKDQGRIWKHXVHUWRWKHFXWWLQJHGJH7KHGHVLJQLVWKHSK\VLFDOH[SUHVVLRQRIWKHLQWHQGHGSXUSRVHRIWKHNQLIH

:RUNPDQVKLS:RUNPDQVKLSLVKRZZHOOWKHPDWHULDOVKDYHEHHQSUHSDUHGDQGMRLQHGWRJHWKHUWRIRUPWKHNQLIH,WDOVRLPSOLHVWKHUDQJHRIWHFKQLTXHVWKDWWKHPDNHUKDVDWKLVRUKHUGLVSRVDO+HUHDUHVRPHEDVLFSRLQWVRIJRRGZRUNPDQVKLS,ZLOOUHSHDWWKHPDVHDFKVWHSDULVHVLQWKHWH[WRIWKHERRN)LUVWWKHJULQGLQJRQWKHEODGHDVZHOODVRQDOOFRQWRXUVVKRXOGEH


17/266

VPRRWK VKDUS DQG ZHOO GHILQHG 1R REYLRXV PDUNVVKRXOGUHPDLQIURPDQ\RIWKHSURFHVVHVXQOHVVWKH\KDYHVRPH GHFRUDWLYH IXQFWLRQ 7KHUH VKRXOGEH QR ULSSOHV LQWKHEODGH

$OO MRLQWV VKRXOG EH IOXVK DQG VPRRWK 7KHUHVKRXOG EH YLUWXDOO\ QR RSHQLQJV EHWZHHQ PDWHULDOV VLQFHDQ\JDSVXFKDVEHWZHHQWKHVODEVDQGWKHWDQJFDQFROOHFWIRRG DQG PRLVWXUH ,Q DGGLWLRQ WR EHLQJ XQVLJKWO\ DQGXQVDQLWDU\ JDSV DUH D VHDWRI UXVW DQG URW ZKLFK LQWKHORQJUXQZLOOGHVWUR\WKHNQLIH

7KHNQLIHVKRXOGEHVWUDLJKWDORQJWKHEODGHOLQHIURPWKHEXWWWRWKHWLS

7KHEODGHVKRXOGEHWKHULJKWWKLFNQHVVDQGKHDWWUHDWHGSURSHUO\7KHVHDUHVRPHZKDWPRUHGLIILFXOWSRLQWVRIMXGJPHQWEXWZLWKVRPHSUDFWLFH\RXFDQOHDUQWRUHDOO\HYDOXDWHWKHPHULWVRIDEODGH

0DWHULDOV7RGLVFXVVPDWHULDOVLVWRVSHDNWHFKQLFDOO\,W

GRHVQWGRPXFKJRRGWRWHOO\RXWKDWDNQLIHVKRXOGEHPDGHRIJRRGVWHHOZLWKKDQGOHPDWHULDOVWKDWDUHEHDXWLIXOZDUPVWURQJGXUDEOHDQGPRLVWXUHUHVLVWDQW


18/266

JHQHUDOO\QRWEHXVHGIRUSUDFWLFDOZRUN7KH\DUHXVXDOO\SURPLQHQWO\RUVXEWO\GLVSOD\HG7KHERXQGDU\EHWZHHQWKHVHWZRW\SHVRINQLYHVLVTXLWHIX]]\DQGZKDWZRXOGEHDXVHUVNQLIHIRURQHSHUVRQPLJKWZHOOEHDSULPHFROOHFWRUVLWHPIRUDQRWKHU

$ . Q L I H P D N H U V 2 Y H UY L H Z ,DPJRLQJWREULHIO\RXWOLQHWKHNQLIHPDNLQJSURFHVVGHVFULEHGLQWKLVERRNVR\RXZLOOKDYHD


19/266

SHUVSHFWLYHRIZKDWZHDUHJRLQJWRFRYHUDQGVRWKDWZHKDYHVRPHWKLQJWRUHODWHWRZKHQ,GHVFULEHWKHWRROVUHFRPPHQGHGIRUWKHMRE)LUVWWKHVWHHOLVVHOHFWHGDQGFOHDQHG7KHNQLIHLVGHVLJQHGDQGWKHURXJKVKDSHLVGUDZQDQGFXWRXWHLWKHUZLWKDFXWWLQJWRUFKRUZLWKDEDQGVDZILWWHGZLWKDVSHFLDOKDUGPHWDOFXWWLQJEODGH7KHHGJHVDUHWULPPHGDQGWKHVKDSHIXUWKHUUHILQHGRQWKHJULQGVWRQH7KHQWKHHGJHLVURXJKO\JURXQGZLWKWKHJULQGVWRQHDQGUHILQHGRQDEHOWJULQGHU7KHEROVWHUDQGRUEXWWSODWHLIDQ\LVEUDLVHGRQ1H[WWKHNQLIHLVKDUGHQHGDQGWKHQDQQHDOHGLQWZRZD\V$IWHUWKDWWKHNQLIHLVIXUWKHUJURXQGDQGSROLVKHGZLWKWKHEHOWJULQGHU7KHULYHWKROHVDUHGULOOHGDQGHWFKLQJLIDQ\LVGRQHDWWKLVSRLQW7KHZRRGHQERQHRU0LFDUWDKDQGOHVDUHGULOOHGJOXHGDQGULYHWHG7KHKDQGOHLVVKDSHGRQWKHEHOWJULQGHUDQGSXWWKURXJKDVHULHVRISURJUHVVLYHO\ILQHUDEUDVLYHWUHDWPHQWVWKHHQWLUHNQLIHLVEXIIHGRQD

IODQQHOZKHHODQGWKHEODGHLVVKDUSHQHGRQDILQHEHOWDQGWKHEXIILQJZKHHO)LQDOO\WKHKDQGOHLVWUHDWHGZLWKRLODQGWKHNQLIHLVLQVSHFWHGDQGVLJQHG$FRPSOHWHOLVWRIWKHVWHSVLQYROYHGLVJLYHQRQSDJH


20/266

%DVLF6NLOOV

2QHRIWKHPDLQGLIILFXOWLHVIRUWKHSHUVRQZKRZDQWVWRPDNHRQHRUWZRNQLYHVDVZHOODVWKRVHMXVWEHJLQQLQJ WKH WUDGH LV JDLQLQJ DFFHVV WR WKH SURSHU

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

WLRQVDQGLQOHDUQLQJWRUHFRJQL]HJRRGTXDOLW\WRROV+DQGPDGHGRHVQRWPHDQLQHIILFLHQWDQGLI\RXQHHGWRPDNHDOLYLQJHYHQDPRGHVWRQH\RXKDYHJRWWR NHHS WKLQJV PRYLQJ )DFH IDFWV XQOHVV \RX DUH DQH[SHUWUHDGEDVLFWH[WVRQWKHIROORZLQJVXEMHFWVSOXVDQ\WKLQJHOVH\RXWKLQNLVUHOHYDQW

2[\DFHW\OHQHFXWWLQJDQGZHOGLQJ6LPSOHWRROPDFKLQLQJDQGPHWDOOXUJ\(OHFWULFDOZLULQJ(OHFWULFDOPRWRUV


21/266

DFWXDOO\,DPILQGLQJWKDWWKHPRUH,GHOYHLQWRWKHGLIIHUHQWFULWHULDDQGPHWDOOXUJLFDOSRVVLELOLWLHVIRUEODGHVWKHPRUHFRPSOLFDWHGWKHTXHVWLRQEHFRPHV)RUWKLVUHDVRQ,ZLOOJLYH\RXWZRDQVZHUVILUVWDVLPSOHVWUDLJKWIRUZDUGRQHWKDWZLOOVDWLVI\PRVWSHRSOHHQRXJKVRWKDWWKH\FDQJRDKHDGDQGPDNH

VRPHNQLYHV7KHQLQWKHDSSHQGL[,ZLOOSURYLGHDPRUHFRPSOHWHDQVZHULQYROYLQJVRPHRIWKHGLIIHUHQWW\SHVRIDOOR\VWHHOVDQGVRPHRIWKHPRUHVXEWOHSRVVLELOLWLHVRIVWHHOFKHPLVWU\DQGGHVLJQ7KHDSSHQGL[ZLOOJLYH\RXDQLGHDRIKRZLURQFDUERQDQGWKHYDULRXVDOOR\VDVZHOODVVRPHGLIIHUHQWKHDWWUHDWPHQWSURFHVVHVSURGXFHWKHGLIIHUHQWTXDOLWLHVLQVWHHO+HUHLVWKHVLPSOHVWUDLJKWIRUZDUGDQVZHU$JRRGEODGHPXVWILUVWEHVKDSHGSURSHUO\DQGJURXQGWRWKHSURSHUWKLFNQHVVVRWKDWLWFXWVZHOOLQWKH

RSHUDWLRQVIRUZKLFKLWLVGHVLJQHG7KHVHIDFWRUVDUHGLVFXVVHGLQFKDSWHU,WVKRXOGDOVREHQRWHGWKDWWKHIDFWRUVRIEODGHGHVLJQDQGWKLFNQHVVLQWHUDFWWRVRPHH[WHQWZLWKWKHW\SHRIVWHHODQGWKHWHPSHULQJSURFHVVHVXVHG7KHVHFRQGIDFWRULQDJRRGEODGHLVWKHFKDUDFWHURIWKHVWHHOXVHG7KHUHDUHIRXUIDFWRUVKDYLQJWRGRZLWKVWHHOVHUYLFH6LPSO\VWDWHGWKH\DUHKDUGQHVVWRXJKQHVVZHDUUHVLVWDQFHDQGUHVLVWDQFHWRFRUURVLRQ+DUGQHVVLVWKHWHQGHQF\WRUHVLVWLQGHQWDWLRQ7RXJKQHVVLVWKHHODVWLFVWUHQJWKWRUHVLVW

GHIRUPDWLRQDQGIUDFWXUH:HDUUHVLVWDQFHLVWKHDELOLW\WRVWDQGXSXQGHUDEUDVLYHSUHVVXUH&RUURVLRQUHVLVWDQFHDV\RXPLJKWKDYHJXHVVHGLVWKHDELOLW\WRVWDQGXSXQGHUFKHPLFDODWWDFNVXFKDVUXVW$QLGHDONQLIHEODGHVKRXOGEHKDUGVRWKDWLWZRQWEHFRPHGHQWHGDQGVFUDWFKHGWRXJKHQRXJKVRWKDWLWZRQWEHQGRUEUHDNDQGZHDUUHVLVWDQWHQRXJKVRWKDWLWZLOOKROGDJRRGHGJH,ILWLVWRRKDUGDQGWRRZHDUUHVLVWDQWLWZLOOEHGLIILFXOWWRVKDUSHQ$QLGHDOEODGHVKRXOGDOVREHVWDLQOHVVVRWKDWLWZRQWGDUNHQDQGUXVW


22/266

7KHVHIRXUIDFWRUVDUHLQWHUUHODWHGDQGQRLGHDOVWHHOKDV\HWEHHQGHVLJQHGWKDWSURGXFHVWKHSHUIHFWEODGH:KDW\RXKDYHLVDVHULHVRIWUDGHRIIV)RUH[DPSOHWKHKDUGHUDJLYHQVWHHOLVWHPSHUHGWKHPRUHEULWWOHLWEHFRPHV7KHVDPHLVJHQHUDOO\WUXHRIZHDUUHVLVWDQFHWKHPRUHZHDUUHVLVWDQFHWKHOHVV

WRXJKQHVV7ZRVWHHOVRIWKHVDPHKDUGQHVVPD\EHYHU\GLIIHUHQWLQWHUPVRIZHDUUHVLVWDQFHGXHWRGLIIHULQJDOOR\PDNHXSVWHHOGHVLJQ7ZRSLHFHVRIWKHVDPHDOOR\WKDWKDYHEHHQKDUGHQHGWRWKHVDPHGHJUHHFDQGLIIHULQWRXJKQHVVGXHWRGLIIHULQJKHDWWUHDWPHQWV7KHVXEMHFWLVIXUWKHUFRPSOLFDWHGZKHQ\RXVWDUWJHWWLQJLQWRFRUURVLRQUHVLVWDQFHDQGWKHVRFDOOHGVWDLQOHVVVWHHOV6R\RXVHHWKLVZKROHWKLQJLVD3DQGRUDVER[,I\RXDUHLQWHUHVWHGVNLSDKHDGWRWKHDSSHQGL[,QWURGXFWLRQWR$OOR\6WHHOV


23/266

:KDW.LQGRI6WHHO"

$VD NQLIHPDNHURQHRIWKHGHFLVLRQV\RXKDYHWR PDNH LV WKH NLQG RI VWHHO \RX ZLOO FKRRVH IRU DSDUWLFXODUNQLIH7KHUHDUHWZRYDJXHO\GHILQHGFDWHJRULHV WR FKRRVHIURP 7KH ILUVW LV RUGLQDU\ FDUERQ

VWHHO7KLVFDWHJRU\LQFOXGHVVWHHOVWKDWGLIIHULQWKHW\SHVDQGSURSRUWLRQVRIFDUERQDQGDOOR\VWKDWDUHPL[HGWRJHWKHUZLWKWKHLURQ7KHWKLQJVWKH\KDYHLQFRPPRQDUHWKDWWKH\DOOWHPSHULHEHFRPHKDUGHQHG YLD WKH VDPH EDVLF VHULHV RI WUHDWPHQWV DQGWKH\ZLOOUXVWDQGFRUURGH

7KH VHFRQG EURDG FDWHJRU\ FRXOG EH GHVFULEHGDVWKHH[RWLFRUDOOR\VWHHOV7KHVHPDWHULDOVKDYHD ZLGH YDULHW\ RI FKDUDFWHULVWLFV 2QH WKLQJ WKH\ DOOKDYH LQ FRPPRQ LV WKDW HDFK ZDV GHVLJQHG WR GRVRPHWKLQJWKDW SODLQFDUERQ VWHHOZLOOQRWGR6RPHDUH GHVLJQHG WR UHWDLQ KDUGQHVV DW KLJKHU

WHPSHUDWXUHV6RPHVXFKDVFREDOWDQGFDUELGHFDQEHPDGHKDUGHUWKDQRUGLQDU\FDUERQVWHHO6RPHDUHGHVLJQHG WRUHVLVWFRUURVLRQDQGUXVW6RPHRI WKHVHKDYH EHHQ DGDSWHG RU GHVLJQHG IRU PDNLQJ NQLIHEODGHV $OO WKHVH VWHHOV GLIIHU LQ WHUPV RI WKHWUHDWPHQWVWKDWPDNHWKHPKDUGDQGWRXJK%HFDXVHWKLVERRNLVDERXWEDVLFNQLIHPDNLQJ,KDYHGHFLGHGWROLPLWWKHEDVLFLQVWUXFWLRQVWRWKHXVHRIFDUERQVWHHO$,6,1XPEHUV:DQGVDZEODGHVWHHOZKLFKLVDOVRNQRZQDV/VWHHO:LWKWKLVWUDGLWLRQDOW\SHRIVWHHO\RXFDQSURGXFHKDQGVRPH

GXUDEOHNQLYHVRIYHU\KLJKTXDOLW\DQGDWWKHORZHVWSRVVLEOHFRVWIRUPDWHULDOV([RWLFVWHHOVDUHEULHIO\FRYHUHGLQWKHDSSHQGL[0RVWNQLIHPDNHUVEHJDQWKHLUFDUHHUVXVLQJFDUERQVWHHOIURPROGVDZEODGHVILOHVRUOHDIVSULQJVIURPFDUV6DZEODGH6WHHO

6LQFHXVHGVDZEODGHVDUHIDLUO\FRQVLVWHQWPHWDOOXUJLFDOO\FRPHLQDYDULHW\RILGHDOVL]HVDQGWKLFN


24/266

QHVVHV DQG DUH YHU\ HDV\WR REWDLQ , VXJJHVW WKDW\RXXVHWKLVZRQGHUIXOVRXUFHRIVWHHOHVSHFLDOO\LI\RXDUH D EHJLQQHU , KDYH IRXQG WKDW IRU WKH EHJLQQLQJNQLIHPDNHUDQGHYHQIRUWKHDGYDQFHGRQHVDZEODGHVWHHOLVTXLWHDGHTXDWH2QFH\RXKDYHPDVWHUHGPDNLQJNQLYHVRXWRIROGVDZEODGHV\RXPD\WKHQZLVKWR

H[SHULPHQWZLWKRWKHUVWHHOV,XVHFDUERQVDZEODGHVWRFNZKLFK,VFURXQJH

IURPOXPEHUPLOOVDQGVFUDS\DUGV7KHVHEODGHVDUHPDGHIURPWRSTXDOLW\FDUERQVWHHODQGDUHLGHDOIRUNQLIHPDNLQJ7KHIROORZLQJDUHVRPHRIWKHGLIIHUHQWW\SHV%DQGVDZEODGHVFRPHLQVHYHUDOWKLFNQHVVHVXSWRWZHOYHJDXJHZKLFKLVDOLWWOHRYHU LQFKWKLFN7KHVHEODGHVUXQWRLQFKHVZLGHDQGDSSUR[LPDWHO\IHHWORQJVRLI\RXJHWRQH\RXFDQFXWRXWDORWRINQLYHV7ZHOYHJDXJHLVDJRRGZHLJKWIRUPRVWRIWKHKHDYLHU

NLWFKHQNQLYHVDQGIRUPRVWOLJKWHUFDPSLQJDQGKXQWLQJW\SHNQLYHVWRR7KHWKLQQHUJDXJHVZKLFKDUHDOVRHDVLHUWRILQGDUHJRRGIRUILQHSDULQJVOLFLQJDQGILOOHWLQJW\SHNQLYHV'UDJVDZV ZKLFKKDYHQRWEHHQXVHGFRPPHUFLDOO\VLQFHWKHDGYHQWRIFKDLQVDZVHPSOR\DEODGHWKLFNHUWKDQWKHKHDYLHVWEDQGEODGHDSSUR[LPDWHO\96LQFK7KHVHEODGHVORRNVRPHWKLQJOLNHWKHWZRPDQKDQGVDZEXWDUHKHDYLHUDQGDUHVKDSHGGLIIHUHQWO\OLNHVR7KHVHFDQVWLOOEHIRXQGDURXQGMXQNSLOHVDQGLQVWHHO\DUGV%HFDXVHRIWKHLUSUHFLVHWKLFNQHVVWKH\DUHDQH[FHOOHQWVRXUFHRINQLIHVWHHO7KH\KDYHDJRRGZHLJKW

IRUVNLQQLQJDQGFDPSLQJNQLYHV7KH\DUHDOVRVXLWDEOHIRUKHDY\NLWFKHQNQLYHVUDQJLQJIURPYHJHWDEOHDQGFDUYLQJNQLYHVWROLJKWFOHDYHUV

7KHUHDUHORWVRIROGWZRPDQVDZVDURXQGWKDWORRNOLNHWKLV7KH\FDQEHDQ\ZKHUHIURPWRIHHWORQJ7KHWKLFNQHVVLVULJKWIRUILQHYHJHWDEOHNQLYHVILOHWNQLYHVDQGOLJKWVKHDWKNQLYHV7KHUHLVJUHDWYDULDELOLW\DPRQJWKHVHEODGHVPHWDOOXUJLFDOO\


25/266

7KHFLUFOHVDZEODGHVUXQXSWRDERXW LQFKLQWKLFNQHVV7KHVHFDQSURYLGHWKHKHDYLHUKXQWLQJDQGVNLQQLQJNQLYHVPHDWFOHDYHUVKDWFKHWVDQGRWKHUWRROVVXFKDVFKLVHOV

$QDO\VLVRI6DZEODGH6WHHO

7KH VWHHO XVHG E\ D ODUJH PDQXIDFWXUHU RI OXPEHUPLOO EODGHV VKRZV WKH IROORZLQJ FRQWHQW FDUERQ SHUFHQW VLOLFRQ SHUFHQW PDQJDQHVH SHUFHQWSRWDVVLXPSHUFHQWVXOIXUSHUFHQWFKURPHSHUFHQWDQGQLFNHO SHUFHQW7KHUHPDLQLQJSRUWLRQRIWKHVWHHOLV LURQSOXV VRPHWUDFH LPSXULWLHV6HH WKHDSSHQGL[0RVWVDZEODGHVWHHOSUREDEO\IDOOVLQWRWKH/W\SHFDWHJRU\ZKLFKLVQWVXUSULVLQJEHFDXVH/LVOLVWHGLQ

7RRO6WHHOVDVDIDYRULWHVWHHOIRUPDNLQJVDZEODGHVDQGNQLIHEODGHV)RUPRUHRQ/DQGRWKHUW\SHVRIVWHHOVHHWKHDSSHQGL[,KDYHIRXQGWKDWDOOFDUERQVWHHOVDZEODGHVSURGXFHQHDUO\WKHVDPHHGJHKROGLQJSURSHUWLHVZLWKXQLIRUPKHDWWUHDWLQJVR,KHDWWUHDWDOOEODGHVZLWKWKHVDPHSURFHVVGHVFULEHGLQWKHWHPSHULQJVHFWLRQS2QHW\SHRIVDZEODGHWKDWLVFRPPRQO\XVHGIRUNQLIHPDNLQJKRZHYHULVLQDVSHFLDOFDWHJRU\7KLVLVWKHPHFKDQLFDOKDFNVDZEODGH$OWRJHWKHUWKHVHEODGHVORRNSUHWW\PXFKDOLNHEXWWKH\DUHPDGHIURPDZLGHYDULHW\RIPHWDOVDQGDUHJHQHUDOO\QRWSODLQFDUERQVWHHO

7KHUHIRUHWKH\FDQQRWEHKHDWWUHDWHGZLWKWKHWHFKQLTXHVXVHGIRUFDUERQVWHHO8VLQJWKLVVWHHOLVDOLWWOHULVN\VLQFHLWLVGLIILFXOWWRGHWHUPLQHMXVWZKDWDSDUWLFXODUPHFKDQLFDOKDFNVDZEODGHLVPDGHRI,KDYHQRWDWWHPSWHGWRFRYHUWKHWHPSHULQJLQVWUXFWLRQVIRUWKHVHW\SHVRIVWHHO

7KLV YROXPH 7RRO 6WHHOVE\ * $ 5REHUWV - &+DPDNHU -U DQG $ 5 -RKQVRQ ILUVW SXEOLVKHG LQ

LV WKH DXWKRULWLYH ZRUN RQ WKH VXEMHFW ,


26/266

&RUURVLRQ2QHGLVDGYDQWDJHRIFDUERQVWHHOVDZEODGHVWRFNLVWKDWLWLVQRWVWDLQUHVLVWDQWDQGWKHUHIRUHLWFDQUXVWHVSHFLDOO\LIH[SRVHGWRVDOWZDWHURUVDOWDLU,WZLOO

FHUWDLQO\GDUNHQZLWKDJH7KHUHIRUHLWLVDQLQGLYLGXDOTXHVWLRQDVWRZKLFKVWHHOWRFKRRVHIRUPDNLQJDNQLIH:KRZLOOXVHLW")RUZKDWSXUSRVHDQGZKHUHZLOOLWEHXVHG",VFRVWDIDFWRU"6RPHSHRSOHSUHIHUFDUERQVWHHODHVWKHWLFDOO\IRULWVDQWLTXHORRNVLQFHLWGDUNHQVRYHUWKH\HDUVDQGRUEHFDXVHWKH\GRQRWWUXVWVWDLQOHVVVWHHO:KHQVWDLQOHVVVWHHOILUVWFDPHRXWLWZDVQRWVXLWHGIRUKROGLQJDJRRGHGJHEXWEHFDXVHRILWVQRQFRUURVLYHSURSHUWLHVPDQ\NQLYHVZHUHSURGXFHGIURPLWJLYLQJVWDLQOHVVDEDGQDPH$QGVLQFHPDQ\NQLYHVDUHPDGHIURPHYHQFKHDSHUJUDGHVRIVWDLQOHVVVWHHOWRGD\LWV

UHSXWDWLRQKDVEHFRPHV\QRQ\PRXVZLWKSRRUTXDOLW\WRWKHJHQHUDOSXEOLF6LQFHWKLVLVUHDOO\DERRNIRUEHJLQQHUV,ZLOOSUHVHQWRQHJHQHUDODSSURDFKWRZDUGPDNLQJNQLYHVIURPVKHHWVRIFDUERQVWHHO,I\RXSUHIHUWRXVHVRPHRWKHUPDWHULDOVSHUKDSVVRPHKLJKO\ZHDUUHVLVWDQWWRROVWHHORURQHRIWKHEHWWHUKLJKFDUERQVWDLQOHVVVWHHOVRQWKHPDUNHW\RXFDQVWLOOXVHWKLVERRN+RZHYHULQVWHDGRIUHIHUULQJWRWKHWHPSHULQJLQVWUXFWLRQVDQGUHFRPPHQGDWLRQVZKLFKDUHJLYHQLQFKDSWHUUHIHUWRWKHDSSHQGL[7KHJHQHUDOFKDUDFWHULVWLFVDQGKHDW

WUHDWLQJWHFKQLTXHVIRUPRVWFRPPRQO\XVHGH[RWLFVWHHOVDUHSUHVHQWHGWKHUH


27/266


28/266

&KDSWHU

7RROV2EYLRXVO\WKHVKRSDUUDQJHPHQWV\RXQHHGZLOO

EHGHWHUPLQHGLQSDUWE\WKHQXPEHUDQGWKHTXDOLW\RINQLYHV\RXSODQWRPDNH,I\RXZLVKWRPDNHMXVWDIHZNQLYHV\RXFDQSUREDEO\ERUURZRUUHQWWKHPDFKLQHV\RXGRQRWKDYH


29/266

FULWLFDOPRPHQWVEXWPRUHOLNHO\DQGPRUHGHYDVWDWLQJLVWKDWWKH\ZLOOGRDSRRUMRE%HVLGHVGXOOLQJWKHVKLQHRI\RXUFUDIWVPDQVKLSFKHDSWRROVZLOOZREEOHDQGZKLQHDQGPDNHWKHURXQGHGJHVVTXDUHDQGWKHVTXDUHRQHVURXQG$QGWKH\OOEORRG\\RXUILQJHUV

,DPJRLQJWRGHVFULEHVRPHRIWKHWRROVWKDW,XVHDQGWHOO\RXZKDW,NQRZDERXWWKHPLQWHUPVRIZKDWWKH\GRDQGKRZZHOOWKH\SHUIRUPIRUSURGXFWLRQNQLIHPDNLQJDQG\RXFDQGHWHUPLQHKRZHVVHQWLDOHDFKRQHLVWRWKHW\SHRINQLIHPDNLQJRSHUDWLRQ\RXKDYHLQPLQG%\SURGXFWLRQNQLIHPDNLQJ,PHDQEHLQJDEOHWRSURGXFHILIW\RUVRNQLYHVSHUPRQWKVLQJOHKDQGHG,ZRUNLQEDWFKHVRINQLYHVRIDERXWWHQWRWZHQW\SHUEDWFK7KLVZD\,UHSHDWHDFKRSHUDWLRQRQHDFKNQLIHLQWKHEDWFKWKHQPRYHWRWKHQH[WRSHUDWLRQ,FDQVWLOOJLYHHDFKNQLIHLQGLYLGXDODWWHQWLRQEXW,GRQWKDYHWRVWDUW

DQGVWRSWKHPDFKLQHVVRRIWHQ2[\DFHW\OHQH7RUFK7KLVLVRQHRIWKHPRVWXVHIXOWRROVLQDQ\ZRUNVKRS1RWRQO\FDQ\RXXVHLWIRUFXWWLQJRXWNQLYHVWHPSHULQJWKHPDQGDQQHDOLQJWKHPEXWWKLVWRROLVLQYDOXDEOHIRUIDEULFDWLQJDQGPRGLI\LQJRWKHUWRROVVXFKDVPDNLQJDJRRGVWDQGIRU\RXUQHZEHOWJULQGHUIRUPDNLQJDZRUNEHQFKRUKHDWLQJVRPHJHDURUEXVKLQJWKDWZRQWFRPHRIILWVVKDIWHW

FHWHUD7KHPRVWXVHIXOW\SHRIVHWXSLVWKHFRQYHUWLEOHWRUFKOLNHWKHRQHLQWKHGUDZLQJ7KHFXWWLQJDQGZHOGLQJWLSVDUHLQWHUFKDQJHDEOHRQWKHVDPHWRUFKKDQGOH2WKHUZLVHZKHQ\RXFKDQJHIURPWKHFXWWLQJWLSWRDZHOGLQJWLS\RXKDYHWRXQVFUHZWKHHQWLUHWRUFKIURPWKHJDVOLQHV,I\RXKDYHDFXWWLQJDQGDZHOGLQJDWWDFKPHQW\RXFDQXVHVWHHOIUHHO\DVDPHGLXPIURPZKLFKWRWUDQVIRUP\RXUGUHDPVLQWRUHDOLW\


30/266

0RWRUVDQG3RZHU$SSOLFDWLRQ

7KHUHDUHVHYHUDOIDFWRUVWRFRQVLGHUZKHQDSSRLQWLQJDPRWRUWRSHUIRUPDJLYHQWDVNWKHVL]HRUKRUVHSRZHU+3UDWLQJWKHGLUHFWLRQRIURWDWLRQWKH

RSHUDWLQJUHYROXWLRQVSHUPLQXWH530DQGWKHHOHFWULFDOUHTXLUHPHQWV

,KDYHPHQWLRQHGWKHJHQHUDOKRUVHSRZHUUHTXLUHPHQWVIRUWKHYDULRXVPDFKLQHVLQWKHVHFWLRQVEHORZEXWWKHVHUHTXLUHPHQWVZLOOGHSHQGJUHDWO\RQWKHSDUWLFXODUPDFKLQH\RXDUHXVLQJDQGKRZKDUG\RXDUHJRLQJWRSXVKLW0RVWPDFKLQHVDUHGULYHQE\D9EHOWGULYHPHFKDQLVPFRQVLVWLQJRIWKHEHOWRUEHOWVDQGWKHSXOOH\VRQWKHPRWRUDQGWKHPDFKLQH'HSHQGLQJRQWKHUHODWLYHVL]HRIWKHSXOOH\VWKHPRWRUZLOOSURGXFHPRUHRUOHVVVSHHGDQGLQYHUVHO\SUR

SRUWLRQDOWRUTXHWXUQLQJIRUFHLQWKHPDFKLQH7KLVZRUNVRQWKHVDPHSULQFLSOHDVWKHGLIIHUHQW

JHDUVLQDQDXWRPRELOHWUDQVPLVVLRQ(DFKPRWRUKDVDVPDOOPHWDOSODWHRQZKLFKWKH

RSHUDWLQJVSHHGDQGKRUVHSRZHUUDWLQJLVVWDPSHG0RVWPRWRUVPDQXIDFWXUHGIRUZRUNVKRSXVHUXQDWHLWKHU530RU5307KHUHIRUHWKHUHODWLYHVL]HRIWKHSXOOH\VFKRVHQWRWUDQVPLWSRZHUIURPWKHPRWRUWRWKHPDFKLQHZLOOGHSHQGRQWKHRSHUDWLQJVSHHGRIWKHPRWRUDQGWKHGHVLUHGUXQQLQJVSHHGRIWKHPDFKLQH

+RUVHSRZHULVWKHDELOLW\WRGRDFHUWDLQPHDVXUHGDPRXQWRIZRUNLQDJLYHQDPRXQWRIWLPHKRUVHSRZHULVIRRWSRXQGVRIZRUNSHUPLQXWH7KHUHIRUHLI\RXFRQQHFWDPDFKLQHVRWKDWLWLVUXQQLQJWZLFHDVIDVWDVWKHPRWRUWRUDWLRWKHQLWFDQSXOORQO\KDOIDVKDUGDJDLQVWWKHZRUNSLHFH

7KH IDFWRUV WR FRQVLGHU ZKHQ PDNLQJ D PRWRUFRQQHFWLRQDUHWKHGHVLUHGVDIHVSHHGRIWKHPDFKLQHDQG WKH SRZHU RI WKH PRWRU


31/266

EXUQRXW,ILWLVXQGHUWRRPXFKVWDUWLQJVWUDLQLWPD\RQO\EXUQRXWWKHPRWRUVWDUWLQJXQLW


32/266

$QRWKHUZD\LVWRXVHDWKLUGPHPEHURULGOHUZKHHOWRWDNHXSWKHEHOWVODFNDWWKHGLIIHUHQWVHWWLQJV7KLVWKLUGZKHHOFDQNHHSWKHEHOWWLJKWE\PHDQVRIDVSULQJRUQRWFKDGMXVWLQJPHFKDQLVP

7KHUHDUHPRUHHODERUDWHPHWKRGVWRSURGXFHDYDULDEOHVSHHGPDFKLQH)RUH[DPSOH,KDYHVHHQD

ZDVKLQJPDFKLQHPRWRUWUDQVPLVVLRQXQLWXVHGRQDLQFKVSHHGEDQGVDZ

(OHFWULF3RZHU

7KHUH DUH WKUHH IDFWRUV WR FRQVLGHU LQHOHFWULFLW\ SKDVH YROWDJH DQG DPSHUDJH 7KHO LPLWDWLRQV RI \RXU VKRS ZLULQJ DQG WKH SRZHUUHTXLUHPHQWVRI\RXUOLJKWVDQGPRWRUVPXVWIROORZVWULFWO\WKHGLFWDWHVRIWKHVHIDFWRUV,IWKHPDFKLQHVDUH QRW FRUUHFWO\ ZLUHG \RX ZLOO EORZ D IXVH RUFLUFXLWEUHDNHU%XW\RXPD\DVHDVLO\UXLQDJRRGPRWRUFDXVHDILUHRUULVNGDQJHURXVHOHFWULFVKRFN7KLVLVRQHDUHDZKHUHLWLVLPSRUWDQWWRSOD\E\WKHUXOHV7KHHOHFWULFDOUHTXLUHPHQWVRIHDFKPRWRUDUHVWDPSHGRQWKHLGHQWLILFDWLRQSODWH3KDVH

*HQHUDOO\ HOHFWULFLW\ ZLOO EH HLWKHU VLQJOHSKDVH RU WKUHHSKDVH 6LQJOHSKDVH LV XVHG IRUUHVLGHQWLDO SRZHU DQG VRPH OLJKW LQGXVWU\ 7KUHHSKDVHLVXVHGWRSRZHUSURGXFWLRQLQGXVWU\EHFDXVHLW LV PRUH HIILFLHQW :H GRQW QHHG WR JR LQWR WKHWHFKQLFDO GLIIHUHQFHV EHWZHHQ WKH WZR W\SHV RISRZHU 6XIILFH LW WR VD\ WKDW LI \RX FDQ JHW WKUHHSKDVH XVH LW %H VXUH WKDW \RX UXQ WKUHHSKDVHPRWRUV RQO\ RQ WKUHHSKDVH MXLFH DQG VLQJOHSKDVHPRWRUVRQVLQJOHSKDVHMXLFH9ROWDJH

7KLVLVDPHDVXUHRIHOHFWULFDOSUHVVXUHDYDLODEOHOLNHZDWHUSUHVVXUH0RVWUHVLGHQWLDODQGOLJKWLQGXVWULDOHOHFWULFLW\LVYROWVRUYROW'RQRWWU\WRUXQDYROWPRWRUZLWKYROWVRUYLFH


33/266

YHUVD ,I \RXU PRWRU LV YROW PDNH VXUH LW LVSURSHUO\ ZLUHG IRU WKH W\SH RI HOHFWULFLW\ DYDLODEOH WR\RXUVKRS7KHVDPHYROWPRWRUZLOOUHTXLUHWZLFHDVPXFKDPSHUDJHLILWLVXVHGDWYROWVUDWKHUWKDQDWYROWV$PSHUDJHDPS

7KLVLVDPHDVXUHRIWKHIORZRIHOHFWULFLW\,WLVDQDORJRXVWRWKHDPRXQWRIZDWHUIORZLQJWKURXJKDIDXFHW:KLOHWKHYROWDJHLQDV\VWHPLVHVVHQWLDOO\FRQVWDQWWKHDPSHUDJHYDULHVDFFRUGLQJWRWKHSXOORIWKHHOHFWULFDOIL[WXUH

(DFKFLUFXLWLVIXVHGDFFRUGLQJWRWKHDPRXQWRI DPSHUDJH LW FDQ VDIHO\ FDUU\ 7KLV PD\ EH GRQHHLWKHUZLWKIXVHVRUZLWKFLUFXLWEUHDNHUV,QHLWKHUFDVHWKH\ DUH ODEHOHG LQ DFFRUGDQFH ZLWK WKHLU PD[LPXPDPSHUDJH,I\RXGUDZPRUHWKDQWKLVWKURXJKWKHFLU

FXLWWKHIXVHZLOOEORZRUWKHEUHDNHUZLOOEUHDN1RZZKDW\RXQHHGWRGRLVFKHFNWKHDPSHUDJH

RI HDFK RI \RXU HOHFWULFDO FLUFXLWV PDNLQJ VXUH \RXUWRWDO GUDZ LV OHVV *R DURXQG DQG DGG XS WKH WRWDOQXPEHURIDPSVRQDOOWKHPRWRUVDQGOLJKWVWKDWZLOOEH UXQQLQJ VLPXOWDQHRXVO\ IURP D JLYHQ FLUFXLW )RUOLJKWVILJXUHDERXWRQHDPSIRUHYHU\ZDWWV


34/266

&XUUHQWFDUU\LQJFDSDFLWLHVIRUDYDULHW\RIJDXJHVLQFRPPRQXVH

7KHVHYDOXHVDVVXPHDPD[LPXPFDEOHOHQJWKRIIHHW*RWRWKHQH[WODUJHUJDXJHIRUHDFKIHHW8VHWKUHHZLUHFDEOHSOXJVDQGUHFHSWDFOH7KHWKLUGZLUHJUHHQDQGWKHODUJHSURQJRQWKHFRQQHFWRUDUHWKHVDIHW\JURXQG,IDKRWZLUHRQHRIWKHRWKHUWZRVRPHKRZFRPHVLQGLUHFWFRQWDFWZLWKWKHPRWRUKRXVLQJDQG\RXWRXFKWKHPRWRURUDQ\PHWDOWKDWLVWRXFKLQJWKHJURXQGLQJPRWRU\RXZLOOUHFHLYHDPHVVDJHIURPWKHDQJHOV%HVXUHWKHPRWRULVSURSHUO\FRQQHFWHGWRWKHJUHHQJURXQGZLUHDQGWKDWWKHUHFHSWDFOHLVSURSHUO\ZLUHGWRDJRRGJURXQGVXFKDVDZDWHUSLSH

+LJKVSHHG*ULQGHUV


35/266

WKLQNPD\KDYHEHHQGURSSHGRUKLW


36/266

7KHDUERUVKDIWVKRXOGEHKHDY\DLQFKRUD,


37/266

EODGHFDQEHHDVLO\ZRUNHGZKLOHKRWDQRWKHUWLPHVDYLQJDGYDQWDJH

*ULQGLQJ:KHHOV

*ULQGLQJZKHHOVDUHJUDGHGDFFRUGLQJWRWKHVL]H

RIWKHDEUDVLYHSDUWLFOHVLPEHGGHGLQ WKHERG\RIWKHZKHHO6PDOOQXPEHUV JULWVL]H UHIHU WRODUJH FRDUVHSDUWLFOHVDQGVKRXOGEHXVHGIRUIDVWURXJKJULQGLQJRSHUDWLRQV 6PDOOJULWVL]H ZKHHOV SURGXFH VORZHUILQHUJULQGLQJZRUN

*ULQGLQJ ZKHHOVDUH DOVR JUDGHGDFFRUGLQJ WRWKH KDUGQHVV RI WKH ZKHHO DQG WKLV GHWHUPLQHV KRZIDVWWKHZKHHOZLOOFXWDQGKRZORQJWKHZKHHOZLOOODVW*HQHUDOO\DYHU\VRIWZKHHOZLOOFXWYHU\IDVWEXWZLOOQRW ODVWORQJ ZKLOH D KDUGZKHHO ZLOOODVW ORQJHU EXWZLOO QRW FXW YHU\ IDVW 7KH VRIWHU ZKHHO ZHDUV DZD\IDVWHU FRQWLQXDOO\ H[SRVLQJ QHZ DQG VKDUS DEUDVLYH

SDUWLFOHV


38/266

DVLGHIURPSRZHUDWOHDVWKRUVHSRZHULVWKDWLWWUDFNVWKHEHOWVDFFXUDWHO\ 6RPHWLPHV\RX ZDQW WKHEHOWWRWUDFNSUHFLVHO\RQFHQWHUDQGVRPHWLPHV\RXZDQW WKH EHOW WR ODS RYHU RU PD\EH LQFK7KHEHOWVKRXOGRYHUODSWKHZKHHOVR\RXFDQ

ZRUN RYHUWKH HGJHRI WKH ZKHHO DQG JHW LQWR WLJKWDUHDVVXFKDVILQJHUJULSVHWFHWHUD


39/266

0\ ILUVW EHOW VDQGHU ZDV D LQFK E\ LQFKPDFKLQH , QRZ XVH ERWK D LQFK E\ LQFKPDFKLQHDQGDLQFKE\LQFKPDFKLQH$ LQFKEHOWZKLFKLVXVHIXOIRUUHDFKLQJKDUGWRUHDFKDUHDVRIWKHNQLIHLVSUHIHUDEOHRYHUPXFKZLGHUEHOWV

$EUDVLYH%HOWV

7KH DEUDVLYH TXDOLW\ RI WKH EHOWV DV ZLWKVDQGSDSHU LV FDXVHG E\ VPDOO VKDUGV RI VRPHPDWHULDO VXFK DV URFN DOXPLQXP R[LGH HPHU\ RUHYHQ GLDPRQG WKDW DUH JOXHG WR WKH VXUIDFH RI WKHFORWKRUSDSHU7KHDEUDVLYHPDWHULDOLVJUDGHGE\WKHJULW SDUWLFOH VL]H DQG E\ WKH WKLFNQHVV RI FORWK RUSDSHU6DFNLQJ8VHRQO\FORWKEHOWVIRUNQLIHPDNLQJ3DSHUSHOWVDUHWRRZHDNDQGZLOOWHDUEHIRUH\RXJHWIXOOXVHIURPWKHP

&RQVLGHUDEO\ PRUH H[SHQVLYH EHOWV KDYH DVSHFLDO FRDWLQJ WKDW HQDEOH WKHP WR EH UXQ ZHWZLWKRXW IDOOLQJ DSDUW 7KHVH EHOWV DOVR UHTXLUH DVSHFLDOO\FRQVWUXFWHGZDWHUVDQGHUWRDSSO\WKHZDWHUDQGUDWKHUWKHUXQRII7KLVPDFKLQHLVEHWWHUWKDQDGU\PDFKLQHIRUZRUNLQJWHPSHUHGEODGHVEHFDXVHWKH+DWHUNHHSVWKHEODGHVFRROVRWKH\GRQWORVHWKHLU WHPSHU 6HH :DWHUFRROHG %HOW *ULQGHU S

7KH3ODWHQRU:RUN:KHHO

7KHZKHHO\RXZRUNDJDLQVWLVFDOOHGWKHSODWHQ7KLV GUXP XQGHUQHDWK WKH EHOW VKRXOG EH FRYHUHGZLWKUXEEHUVRLWZLOOKDYHVRPHJLYHWRLWI \RXUV GRHVQRW WKHQ \RX VKRXOG FRYHU WKH ZKHHOZLWKDFRDWLQJRIIDLUO\KDUGUXEEHU2QHZD\WRGRKLV LVWRJOXHD OD\HURIKDUGUXEEHURQWR WKHZKHHOZLWK FRQWDFW FHPHQW RU HSR[\ JOXH 7KLV PXVW EHGRQHYHU\FDUHIXOO\DQGHYHQO\DQGWKHUXEEHUVHDPVKRXOG EH DW DQ DQJOH VR LW ZRQW MXPS ZKHQ \RXZRUNDJDLQVWLW

%X\VRPHKDUGUXEEHUVD\LQFKWKLFN

IURPD&ROVXSSO\KRXVHDQGJOXHWKLVWRWKHSODWHQ:KLOH


40/266

WKHHSR[\LVKDUGHQLQJZUDSWKHUXEEHUWLJKWO\DJDLQVWWKHGUXPZLWKPDQ\OD\HUVRIWZLQHWKHQUHPRYHWKHWZLQH

2QP\QHZHUPDFKLQH,KDYHWZRLQWHUFKDQJHDEOH UXEEHUFRDWHG ZKHHOV RQH YHU\ KDUG ZKLFK LVSHUIHFWO\ IODW DQG ZLWK YHU\ VTXDUH HGJHV DQG RQH

PDGHIURPVRIWHUUXEEHUZLWKDYHU\VOLJKWO\URXQGHGIDFHDQGHGJHV,XVHWKHVHZKHHOVIRUGLIIHUHQWEHOWJULQGLQJ DQGVDQGLQJRSHUDWLRQV, XVHWKHKDUGIODWIDFHG ZKHHO IRU WKH LQLWLDO JULQGLQJ UHPRYLQJ WKHVWRFN IURP WKH KROORZ JULQG DQG LQ WKRVH LQVWDQFHVZKHQ,ZDQWWRUHPRYHDORWRIVWRFNIDVW,DOVRXVHWKLVZKHHOWRFXWVKDUSOLQHVZKHUHWKHJULQGLQJVWRSVDWWKHEDVHRIWKHEODGH7KHKDUGUXEEHUZKHHOFXWVFOHDQHUFRROHUDQGPRUHGHHSO\

:KHQ,ZDQWVPRRWKJULQGLQJGXULQJWKHILQDOJULQGLQJDQGSROLVKLQJVWHSVRUZKHQ,DPZRUNLQJWKHZRRGKDQGOHVRUDQ\WLPH,DPRYHUODSSLQJWKH

EHOWWRZRUNLQWRFRUQHUV,XVHWKHVRIWHUYHU\VOLJKWO\URXQGHGZKHHO


41/266

VDQGHUPRXQWHGRQDQLQH[SHQVLYHWKUHDGHGDUERUE\PHDQVRIDGULOOFKXFN

7KLVFRQWULYDQFHZRUNVZHOOIRUPDNLQJMXVWDIHZNQLYHVVLQFHWKHDEUDVLYHVOHHYHVZHDURXWTXLFNO\DQG\RXFDQQRWJXLGHWKHWUDFNLQJRIWKHVOHHYHDV\RX

FRXOGDEHOW7KHVOHHYHVDUHDOVRTXLWHH[SHQVLYHFRPSDUHGZLWKRWKHUIRUPVRIDEUDVLYHV

$EUDVLYH6WULS'UXP6DQGHUV

$GUXPVDQGHUWKDWXVHVDVOHHYHLVPXFKOHVVHFRQRPLFDOWKDQRQHWKDWXVHVDQDEUDVLYHVWULS,QWKHODWWHUW\SHDVWULSRIDEUDVLYHLVZUDSSHGDURXQGWKHRXWVLGHRIWKHGUXPDQGFODPSHGLQZKHUHWKHZKHHOVSOLWV

7KLVDOORZVWKHNQLIHPDNHUWREX\WKHDEUDVLYHLQ IRRW UROOV DW VXEVWDQWLDO VDYLQJV VLQFH LW LV IDUFKHDSHUWKDQWKHSHUIRRWSULFHRIDEUDVLYHEHOWV


42/266

7KHUHDUHVHYHUDOGLIIHUHQWW\SHVRIIODSVDQGHUVRQWKHPDUNHW7KHPRVWHFRQRPLFDOW\SHXVHVVHSDUDWHUHSODFHDEOHUROOVRIDEUDVLYHVWULSDOORZLQJ\RXWRZLQGRXWVRPHPRUHZKHQWKHDEUDVLYHZHDUVGRZQ:KHQWKHVWULSVDUHXVHGXS\RXVLPSO\UHILOO

2WKHU(TXLSPHQW'ULOO3UHVV$QRUGLQDU\EHQFKW\SHGULOOSUHVVLVTXLWHDGHTXDWH

IRUNQLIHPDNLQJ,WLVSUHIHUDEOHIRULWWRKDYHDWOHDVWWZRVSHHGVORZVSHHGIRUPHWDODQGKLJKVSHHGIRUZRRG,I\RXGRQRWKDYHDGULOOSUHVVEXWGRKDYHDQHOHFWULFKDQGGULOO\RXFDQJHWDGULOOSUHVVIUDPHWKDWKDVDFODPSWRKROGDKDQGGULOO7KHVHDUHLQH[SHQVLYHDQGZRUNZHOOHQRXJKWRJHW\RXE\


43/266


44/266

ZKLOHJLYLQJRIIYLUWXDOO\QRIXPHVWRLPSUHJQDWHWKHVXUIDFH RI WKH VWHHO $ VPDOO JDVSRZHUHG NLOQ FRXOGSHUKDSV GR DV ZHOO EXW , KDYH QHYHU XVHG RQH ,VWDUWHG ZLWK DQ ROG WRSORDGLQJ FHUDPLFV NLOQ WKHQGHVLJQHG DQG EXLOW RQH MXVW IRU KDUGHQLQJ NQLYHV

2QFHLWLVKHDWHGIXOO\LWVKRXOGEHFDSDEOHRIEULQJLQJWKHNQLIHRUNQLYHVXSWRWHPSHUDWXUHLQILYHWRILIWHHQPLQXWHVDQGVKRXOGDOORZKDQG\SODFHPHQWDQGUHPRYDORINQLYHV8VHQRWFKHGVRIWILUHEULFNVDVUDFNVWRKROGWKHNQLYHVXSULJKWLQWKHNLOQ3ODFHWKHEODGHVLQWKHUDFNHGJHXSZDUGVIRUHYHQGLVWULEXWLRQRIWKHKHDW7KLVLVRQHSLHFHRIHTXLSPHQWWKDWLVRSWLRQDOVLQFHVRPHYHU\DGYDQFHGNQLIHPDNHUVPDQDJHWRKDUGHQZLWKDQR[\DFHW\OHQHWRUFKRUDFRDOEXUQLQJIRUJH,ZRXOGVXSSRVHKRZHYHUWKDWWKHNLOQLVSUHIHUDEOHIRUPRVWSURGXFWLRQZRUNUHTXLULQJYHU\HYHQKHDWLQJ

WHPSHUDWXUHVVXFKDVWKDWQHHGHGIRUWKHORQJVOHQGHUNQLYHVXVHGIRUERQLQJDQGILOOHWLQJ7KHSURSHUNLOQLVYHU\HDV\DQGFOHDQWRXVHDQGGRHVDSHUIHFWMREHYHU\WLPH$WHPSHUDWXUHJDXJHDQGDWKHUPRVWDWDUHYHU\KDQG\WRKDYHRQDNLOQ,IWKHNLOQWKDW\RXKDYHLVQRWHTXLSSHGZLWKWKHVHGHYLFHV\RXFDQDGGWKHPTXLWHHDVLO\7KHWHPSHUDWXUHJDXJHLVUHDOO\D WKHUPRFRXSOHZKLFKLVFRQQHFWHGWRDPLOOLYROWPHWHUZKLFKUHDGVWKHHOHFWULFFKDUJHJHQHUDWHGE\WKHKHDWHGWLSRIWKHWKHUPRFRXSOHDQGWKHPLOOLYROWVDSSHDUDVGHJUHHVRI

KHDWRQWKHJDXJHGLDO7KHDXWRPDWLFWHPSHUDWXUHFRQWUROPHFKDQLVPLVLQVWDOOHGEHWZHHQWKHLQFRPLQJKRWZLUHVDQGWKHNLOQHOHPHQWV7KLVVZLWFKLVGHVLJQHGWRPDLQWDLQDFHUWDLQVHWWHPSHUDWXUHLQVLGHWKHNLOQ6HH\RXUORFDOFHUDPLFVVXSSO\GHDOHUIRUDQ\DQGDOOWKLQJVUHODWHGWRNLOQV


45/266

DOOR\VWHHOVSULRUWRWKHKDUGHQLQJVWHSDQGWKHRWKHUWREULQJWKHEODGHVWRWKHSURSHUKDUGHQLQJWHPSHUDWXUH6HHWKHDSSHQGL[,QWURGXFWLRQWR$OOR\6WHHOV

)RUJH7KLVFRXOGEHXVHGWRWHPSHUWKHEODGHVLQSODFHRIWKHNLOQLIDKHDWLQJER[LVFRQVWUXFWHGRXWRIILUHEULFNVWRIRFXVDQGGLVWULEXWHWKHKHDWDORQJWKHOHQJWKRIWKHNQLIHVKDQN6HWWKHNQLIHLQWKHFRDOVRQHGJHZLWKWKHFXWWLQJHGJHGLUHFWHGXSZDUGVRLWZLOOEHKHDWHGHYHQO\

$IRUJHZLOODOVREHRIVRPHXVHVKRXOG\RXGHFLGHWR XVH IRUJHKDPPHULQJ DV D PHDQV RI VKDSLQJ DQGKDUGHQLQJWKHEODGHV7KHVHWHFKQLTXHVDUHQRWFRYHUHGLQWKLVERRNKRZHYHU

$QYLO

$ JRRG IODW DQYLO LV HVVHQWLDO IRU VWUDLJKWHQLQJWKH EODGHV ,W FDQ EH PDGH RXW RI D UDLOURDG WUDFN LIQHFHVVDU\ 7KH DQYLO VXUIDFH VKRXOG KDYH D VOLJKWO\FRQFDYHDUHDDOVRUHIHUUHGWRDVDYHU\VKDOORZPROGZKLFK FDQ EH XVHG IRU VWUDLJKWHQLQJ EODGHV ZLWKPLQLPDO KDPPHU IRUFH


46/266

6PDOO7RROV


47/266

ZRRGIRUNQLIHKDQGOHV+DYLQJDOOWKHVHWRROVVHWXSWKLVZD\FRPHVLQYHU\KDQG\IRUGRLQJPDQ\RWKHUWKLQJVEHVLGHVNQLIHPDNLQJ

/LJKWLQJ


48/266


49/266

&KDSWHU

'LIIHUHQW.LQGV

RI.QLYHV:HKDYHRQHPRUHDUHDWRFRYHUEHIRUHZHDFWXDOO\VWDUWPDNLQJNQLYHVNLQGVRINQLYHV


50/266

WKHZRUN%\DQGODUJH,KDYHFRPHWRUHVSHFWWKHVHVKDSHVDVXVHIXOEHDXWLIXODQGVDODEOH7KHVHDUHGHVLJQVWKDWPDQ\SHRSOHFDQUHODWHWRZLWKVSHFLILFJULQGLQJLQVWUXFWLRQVIRUHDFKNLQGRINQLIH,I\RXJHWFRQIXVHGUHDGWKHVHFWLRQVRQJULQGLQJDQGWHPSHULQJILUVWWKHQUHDGWKLVFKDSWHU

9HJHWDEOH.QLIH

7KH)UHQFKFKHIVNQLIHKDVDORQJJHQWO\FXUYLQJEODGH7KHFXUYHLVXVXDOO\PRUHSURQRXQFHGQHDUWKHWLS7KHGURSSHGHGJHJLYHVJRRGILQJHUFOHDUDQFHIRUFKRSSLQJDQGGLFLQJYHJHWDEOHVE\UDSLGO\URFNLQJWKHNQLIHXSDQGGRZQDORQJLWVHGJH7KLVLVDYHU\ROGDQGSRSXODUGHVLJQDQGHYHU\NLWFKHQVKRXOGKDYHDWOHDVWRQHRUSHUKDSVDORQJRQHDQGDVKRUWRQH%ODGHOHQJWKFDQUXQIURPWR

LQFKHVRUPRUH$JRRGVL]HIRUWKHKRPHNLWFKHQLVDERXWLQFKHV7KHGURSSHGHGJHFDQEHIURPLQFKWRDERXWLQFKHVEHORZWKHKDQGOH7KHKDQGOHRIDFKHIVNQLIHDVZHOODVDOOFKRSSLQJ

DQGFDUYLQJNQLIHKDQGOHVVKRXOGEHODUJHHQRXJKWRDFFRPPRGDWHWKHIXOOJUDVSRIDFORVHGKDQG

7KHEODGHKDVDKLJKILQHKROORZJULQGRUDILQHZHGJHVKDSH7KHILUVWLQFKRUVRRIVWHHODERYHWKHFXWWLQJHGJHVKRXOGEHDVWKLQDQGVWURQJDVSRVVLEOHIRUPLQLPXPFXWWLQJUHVLVWDQFHDVZHOODVHDVHRIVKDUSHQLQJ,ILWLVILQHO\JURXQGXSWRLQFKLWZLOO


51/266

WDNHDQHDV\HGJHHYHQDIWHUPDQ\\HDUVRIVKDUSHQLQJ,WLVEHVWWRILUVWJULQGWRRQO\DPRGHUDWHO\WKLQHGJHWKHQWHPSHUDQGFRPSOHWHWKHJULQGLQJRIWKHYHU\ ILQH HGJH RQ D EHOW JULQGHU RU D ZDWHUFRROHGJULQGHU , KDYH ZDUSHG PRUH FKHIV NQLYHV LQ WKHWHPSHULQJSURFHVVWKDQ,FDUHWRWKLQNDERXW

:KHQJULQGLQJDYHU\ILQHHGJHFKHFNLWRIWHQ

VRWKDWLWGRHVQWJHWWRRWKLQLQRQHVSRWUHPHPEHUWKLQVWHHOKHDWVXSYHU\IDVWDQGZRQWUHWHPSHUVRFRQVWDQWO\GLSWKHEODGHLQZDWHUDQGUXQ\RXUILQJHUDORQJWKHHGJHWRPDNHVXUHWKHJULQGLQJLVHYHQ8VHEDUHKDQGVQRWJORYHVWRJULQGDEODGHDIWHUWHPSHULQJVR\RXFDQIHHOWKHKHDWRIWKHEODGH

)LOHW.QLYHV

)LOHWNQLYHVVKRXOGEHIDLUO\ORQJLQFKHVWR

LQFKHVDQGYHU\WKLQQDUURZDQGIOH[LEOH


52/266

JULQGWKLVEODGHPXFKWKLQQHUZLWKRXWZDUSLQJGXULQJWKHWHPSHULQJSURFHVVEHFDXVHWKHHQWLUHEODGHLVWKLQ:KHUHDVZLWKDKROORZJURXQGFKHIVNQLIHWKHEDFNRIWKHEODGHLVWKLFNHUIRUVWUHQJWK

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


53/266

PDFKLQHOLNHDOOZHGJHEODGHVE\UXQQLQJWKHEODGH

XSDQGGRZQWKHZKHHOLQOLQHZLWKWKHEHOW$ILOHWNQLIHVKRXOGKDYHHLWKHUDJXDUGILQJHUJULSVRUVLPSO\DWKLFNDUHDLQWKHKDQGOHQHDUWKHEODGH

7KH%XWFKHU.QLIH

7KLV KHDY\GXW\ PHDW NQLIH LV XVHG IRU EXWFKHULQJODUJH KXQNV RI PHDW FXWWLQJ MRLQWV DSDUW VOLFLQJVWHDNVFKRSSLQJJULVWOHHWFHWHUD,WVEODGHLVXVXDOO\IDLUO\VWUDLJKWZLWKDFXUYHGHQG7KHEODGHZKLFKLVRULQFKHVLQZLGWKDQGWRRUPRUHLQFKHVLQOHQJWKLVPDGHZLWKPHGLXP

WKLFNVWHHO LQFKWKLFN,W LVQRWKROORZJURXQGEXWKDVDIDLUO\ILQHFRQYH[EHYHO7KHEXWFKHUNQLIHVZHLJKW UDQJHV IURP PHGLXPOLJKW WR D YHU\ KHDY\ERQH FUXQFKHU ZLWK WKH JULQGLQJ YDU\LQJFRQVLGHUDEO\ WRR IURP D ILQH VWUDLJKW EHYHO WR DEOXQWFOHDUHGJHFRQYH[EHYHO


54/266

&DUYLQJ.QLIH

0RUHVOHQGHUDQGJUDFHIXOWKDQWKHEXWFKHUNQLIHZLWKDPRUHSRLQWHGWLSWKHFDUYLQJNQLIHLVDOVRTXLWHULJLG7KHVWHHOWKLFNQHVVLVWKHVDPH VLQFK

7UDGLWLRQDOO\FDUYLQJNQLYHVDUHIDQF\ZLWKDILQJHUJXDUGDQGDERQHKDQGOH7KH\FDQEHHLWKHUKROORZJURXQGRUDVWUDLJKWEHYHO7KLVNQLIHLVDERXW

KDOIZD\EHWZHHQDFXUYHGILOHWNQLIHDQGDEXWFKHUNQLIH

&DUYLQJ)RUN

7KHIRUNLVXVXDOO\PDGHIURPWKHVDPHVWHHODQGWKHVDPHKDQGOHPDWHULDODVWKHNQLIH&XWWKHWLQHVZLWKWKHWRUFKJULQGGRZQDQGSROLVKWKHQKHDWWRDGXOOUHGZLWKWKHZHOGLQJWLSDQGEHQGWKHKHDWHGDUHDQHDUWKHWLQHVDVVKRZQ

&DUYLQJNQLYHV


55/266

8VLQJDWUHHDUHDRIWKHDEUDVLYHEHOWLHVRPHSODFHDZD\IURPWKHZKHHOJULQGEHWZHHQWKHWLQHV,I\RXGRQRWKDYHVXFKDIUHHVSDFHRQ\RXUPDFKLQHRULI\RXDUHZRUNLQJZLWKRXWDEHOWJULQGHUXVHDILOHDQGSLHFHVRIDEUDVLYHJOXHGWRDWKLQERDUG

7KH VKDSH RI WKH KDQGOH VKRXOG EH FRPIRUWDEOH

IRUHLWKHUKROGLQJXSVLGHGRZQRUULJKWVLGHXSEHFDXVHLWLVKHOGLQHLWKHUSRVLWLRQLQFDUYLQJ

%RQLQJ.QLIH

7KLVNQLIHLVORQJDQGVOHQGHUIRUFXWWLQJPHDWDZD\IURPWKHERQHEXWLWLVPRUHULJLGWKDQDILOHWNQLIH

7KHEODGHLVEHQWEDFNIURPWKHOLQHRIWKHKDQGOHVRWKHIRUFHRIWKHDUPSXVKHVGRZQKDUGHURQWKHEODGHDWWKHFXUYHGHQGJLYLQJPRUHSUHVVXUHDQGWKXVOHVVWHQGHQF\IRUWKHKDQGWRVOLSIRUZDUG0DQ\DUHPDGHEDFNZDUGVZLWKWKHFXWWLQJHGJHRSSRVLWHWKHILQJHUJULSVIRUFXWWLQJXSZDUGV7KHVHNQLYHVORRNOLNHWKH\DUHVKDUSHQHGGRZQWRDOPRVWQRWKLQJHYHQZKHQQHZEHFDXVHRIWKHVKDSHRIWKHFXWWLQJHGJH

&KRSSLQJ.QLYHV

$OVRFDOOHG&KLQHVHFKRSSLQJNQLYHVWKH\DUHXVHGWR

FKRSSLOHVRIIRRGLQVLQJOHGRZQZDUGVWURNHVRIWKHLUVWUDLJKWEODGHRUWKHEODGHLVSLYRWHGRQWKH


56/266

EDVHHGJHDQGPRYHGLQDQDZNZDUGEXWHIIHFWLYHFKRSSLQJDFWLRQDFURVVWKHIRRG7KHVTXDUHVKDSHSURYLGHVSOHQW\RIZHLJKWDORQJWKHZKROHOHQJWKRIWKHEODGH2ULHQWDOFRRNVXVHWKHPIRUYHU\SUHFLVHKLJKVSHHGFKRSSLQJ:KLOH


57/266

RQHKDQGLVFKRSSLQJWKHRWKHUKDQGLVIHHGLQJLQWKHYHJHWDEOHVDQGJXLGLQJWKHSDWKRIWKHEODGH%ODGHJULQGLQJLVLGHQWLFDOWRWKDWXVHGIRUWKH)UHQFKFKHIVEODGH

%UHDG.QLYHV

%UHDGNQLYHVVKRXOGKDYHDILQHHGJHWKLQVKDQN DQG HQRXJK OHQJWK WR FRPIRUWDEO\ VOLFH DORDI6PDOOQRWFKHVFDQEHFXWLQWRWKHHGJHZLWKDLQFK FXWRII ZKHHO WR SURGXFH D VDZ WRRWKEODGHIRUFXWWLQJKDUGFUXVW%UHDGNQLYHVDUHRIWHQXVHGWRPDNHVDQGZLFKHVVRLWLVIXQFWLRQDOWRKDYHDIDLUO\EOXQWEURDGHQGIRUVSUHDGLQJPD\RQQDLVHEXWWHUHWF

$NQLIHOLNHWKLVFDQEHFRPHDXWLOLW\NLWFKHQNQLIHVHUYLQJDVDVSDWXODLILWLVZLGHHQRXJK$O


58/266


59/266

3DULQJ.QLYHV

7KHSDULQJEODGHXVXDOO\YHU\VOHQGHULVDQ\ZKHUHIURPWRLQFKHVORQJ$NLWFKHQQHHGVVHYHUDOZLWKGLIIHUHQWOHQJWKEODGHV7KHORQJHURQHVDUHXVHGIRUVOLFLQJSHHOLQJDQGILOOHWLQJDQGWKHVKRUWHUEODGHVDUHXVHGDWWKHWLSIRUFOHDQLQJSRWDWRHVHWFHWHUD0DNHDIDLUO\ILQHHGJHRQSDULQJNQLYHV'URSWKHHGJHGRZQDERXWDLQFKRUVRIRUFXWWLQJRQDERDUG $ SDULQJ NQLIH LV UHDOO\ D OLJKWGXW\ XWLOLW\NQLIH7KHVKDSHVRIWKHRQHV,PDNHDUHVKRZQ

0HDW&OHDYHUV

0HDWFOHDYHUVDUHPDGHIURPKHDY\VWHHO&LUFXODUVDZEODGHVDUHDJRRGVRXUFHIRUWKLVWKLFNVWHHO


60/266


61/266

DPROGHGKDQGOHWKDWNHHSVEORRGDQGJUHDVHRIIWKHKDQGZKHQJXWWLQJRUVNLQQLQJDQDQLPDO

7KH VNLQQLQJ NQLIHV EODGH LV FXUYHG WR H[SRVHWKHHGJHIRUVFUDSLQJWKHKLGHEDUH0RVWVNLQQHUVDUHSDUWLFXODUO\FXUYHGQHDUWKHWLSIRUZRUNLQJWKHKLGHDZD\IURPIDWDQGJULVWOH$EXOOQRVHGVNLQQHUKDVQRWLSDWDOO,WVFXWWLQJHGJHFXUYHVFRPSOHWHO\DURXQGDEURDGEOXQWHQGDQGJRHVDQLQFKRUPRUHXSWKHEDFNRIWKHNQLIH

1DWXUDOO\ \RXOO GHVLJQ \RXU VNLQQLQJ NQLIH IRUWKH NLQG RI ZRUN \RX KDYH LQ VWRUH IRU LW ,Q IDFW

PDQ\ VNLQQLQJNQLYHVDUHXWLOLW\NQLYHVZLWK D VKRUWFXUYHGEODGHDQGILQJHUJXDUG,IWKHEODGHVFXUYHLVQRWWRRUDGLFDOLWVHUYHVWRFOHDQDQGEXWFKHUJDPHDVZHOO DV SUHSDUH IRRG ,Q VKRUW LW PDNHV D YHU\SUDFWLFDOFDPSNQLIH

0DQ\UHVSHFWHGNQLIHPDNHUVUHFRPPHQGVNLQQLQJDQGXWLOLW\NQLYHVZKLFKDUHPXFKVKRUWHULQWKHEODGHDQGOLJKWHUWKDQWKHROGWLPHNQLYHV6RPHRIWKHVKDSHVWKDWDUHVWULFWO\IRUVNLQQLQJDQGFOHDQLQJJDPHDUHVKRZQ

*ULQGWKHHGJHILQHEXWQRWIOLPV\UHPHPEHU

WKH ILQHU \RX JULQG WKH EHWWHU LW ZLOO FXW EXW WKHZHDNHU LW ZLOO EH ,I \RXSODQ WR XVH WKHNQLIH IRUKHDY\ZRUNGRQRWPDNHLWWRRWKLQ7KHJULQGDQGWKH WKLFNQHVV DUH WRWDOO\ DQ LQGLYLGXDO PDWWHU ZLWKVNLQQLQJNQLYHV

8WLOLW\.QLIH

$XWLOLW\NQLIHLVDPXOWLSXUSRVHNQLIH7KLVNQLIHLVKDQG\IRUPDQ\XVHVIRRGSUHSDUDWLRQIURPFOHDQ

LQJILVKVNLQQLQJDQGFOHDQLQJJDPHWRVOLFLQJFKHHVHRU VWULSSLQJ EDUN D NQLIH WR WDNH EDFNSDFNLQJ RQHWKDW LV VWURQJ DQG OLJKW DQG DKDQG\ NQLIH WKDWZLOOZKLWWOHDQGWULP

$QDVVRUWPHQWRIXWLOLW\NQLYHVVKDSHVWKDWKDYHEHHQLQFRPPRQXVHLVVKRZQ

,KDYHIRXQGWKHVHNQLYHVZKLFKDUHSURWRW\SHVIRUPRVWNQLYHVLQFRPPRQXVDJHWREHRYHUO\ODUJH


62/266

DQGFOXPV\7KHKDQGOHVDUHQRWILWWHGWRWKHKDQGDQGWKHEODGHVGRQRWIORZJUDFHIXOO\IURPWKHKDQGOH8WLOLW\DQGVLGHNQLYHVKDYHEHFRPHFRQVLGHUDEO\VPDOOHURYHUWKH\HDUV%DFNLQ-LP%RZLHVWLPHRQHGLGQWQHHGDJUHDWLPDJLQDWLRQWRSLFWXUHKLPVHOIKHZLQJWLPEHUIRUVKHOWHURIILJKWLQJ

8WLOLW\NQLYHV1RWHWKDWWKHEODGHDUHDQHDUWKHWLSLVDOLWWOHVWUDLJKWHURQWKHXWLOLW\NQLYHVWKDQRQWKHVNLQQLQJNQLYHV(WFKLQJVE\)UDQFLQH0DUWLQ


63/266

IRUKLVOLIHZLWKDEHDU7KHURPDQFHRIWKHPRXQWDLQPHQDQGWKHLUUHDOQHHGIRUODUJHKHDY\NQLYHVKHOSHGSURORQJWKHSRSXODULW\RIWKHELJNQLIHZHOOEH\RQGLWVSUDFWLFDOLW\0DQ\RIWKHHDUO\NQLYHVZHUHDFWXDOO\VKRUW KHDY\ VZRUGV.QLYHV SHRSOH XVH WRGD\ KDYH

EHFRPHPXFK VPDOOHU DQG OLJKWHU EHFDXVH WKH\ DUHHDVLHUWRFDUU\DQGFRQWURO7KHJHQHUDOXWLOLW\NQLIHVKRXOGEHDVKRUW

VOLJKWO\FXUYHGEODGHZLWKWKHFXWWLQJHGJHGURSSHGVOLJKWO\EHORZWKHKDQGOHIRUPLQJDQDWXUDOILQJHUJXDUGDQGOHDYLQJVRPHURRPIRUWKHILQJHUVEHWZHHQWKHKDQGOHDQGFXWWLQJERDUG

7KLVGURSSHGHGJHHQKDQFHVWKHHIIHFWLYHQHVVRIWKHNQLIHLQSUHSDULQJIRRGEHFDXVH\RXFDQFXWPHDODQGYHJHWDEOHVLQWKHPLGGOHRIDFXWWLQJERDUGLQVWHDGRIDORQJWKHHGJHDV\RXZRXOGKDYHWRZLWKREXLOWRQILQJHUJXDUG

7KH GURSSHG EODGH LVDOVR JRRG IRU EXWFKHULQJDQGVNLQQLQJEHFDXVH\RXKDYHWKHSURWHFWLRQRIWKHQDWXUDO ILQJHU JXDUG ZLWK QR EXON\ PDQXIDFWXUHGJXDUGJHWWLQJLQWKHZD\RIWKHFXWWLQJDFWLRQ6LQFHWKH HGJH LVEHORZ WKH ILQJHUV WKH\ VWD\ FOHDQHUDQGOHVV VOLSSHU\ $ LQFK RU OHVV XWLOLW\ EODGH LVDGHTXDWH IRU PRVW KXQWLQJ DQG FDPSLQJ IXQFWLRQVLQFOXGLQJIRRGSUHSDUDWLRQ7KHVWHHOIRUDNQLIHOLNHWKLVFDQYDU\EXWQHHGEHRQO\LQFKWKLFNRUOHVVWRSURYLGHSOHQW\RIVWUHQJWKDQGKHIW$QRWKHUYHU\XVHIXOIHDWXUHLQDXWLOLW\NQLIHLVD

VOLJKWFXUYHWRWKHKDQGOHPDNLQJLWFRQIRUPWRWKHKDQG,WVHYHQEHWWHUWRKDYHDOLWWOHEXPSRUKRRNDOWKHHQGRIWKHKDQGOHIRUWKHOLWWOHILQJHUWRSXVKDJDLQVW$ QXPEHU RI SRVVLEOH VKDSHV IRU XWLOLW\ NQLYHV

WKDW DUH PRUH SUDFWLFDO WKDQ WKH ODUJHU WUDGLWLRQDOXWLOLW\NQLYHVDUHVKRZQ

*ULQGLQJ WHFKQLTXHV IRUXWLOLW\NQLIHEODGHV FDQYDU\ DV PXFK DV WKH VKDSHV ,Q JHQHUDO \RX GRQWZDQWDQHGJHWREHWRRWKLQLIWKHNQLIHLVIRURXWGRRUXVH


64/266

+DWFKHW

)ROORZLQJRUGLQDU\NQLIHPDNLQJSURFHGXUHV\RXFDQ WXUQ ODUJH KHDY\ FLUFXODUVDZ EODGHV LQWR ILQHKDWFKHWV$KDWFKHWWHQGVWREHKHDY\XQOHVV\RXXVHDOLJKWSLHFHRIVWHHOVD\ VLQFKWKLFN

7KHFKRSSLQJDFWLRQLVDOLWWOHGLIIHUHQWIURPWKDWRI DQ RUGLQDU\ ZRRGHQKDQGOHG KDWFKHW ZKLFK KDVWKHFHQWHURIEDODQFHFORVHUWRWKHKHDG7KHIXOOWDQJKDWFKHWLVKLJKO\SUL]HGDPRQJKXQWHUVDQGFROOHFWRUVEHFDXVHLWLVVROLGDQGSDFNVDJRRGZDOORS7KLVWRROLVVLPLODUWRDFOHDYHUEXWZLWKDVKRUWEODGHDQGORQJJUDFHIXOO\FXUYLQJKDQGOH

7KHHGJHLVDFRQYH[EHYHO


65/266

IURP D SV\FKRORJLFDO GLVDGYDQWDJHWKDW LV VRPHSHRSOHOLNHWRVHHWKHIXOOWDQJ


66/266

2EYLRXVO\ WKHUH LV D ZLGH UDQJH RI ZD\V WRFRQVWUXFWNQLIHKDQGOHV7KLVLVRQHRIWKHIDFWRUVWKDWPDNHEHQFKPDGHNQLYHVXQLTXHWKHYDULHW\RIKDQGOHW\SHV,QWKLVERRN,DPJRLQJWRGHVFULEHWZRPDMRUPHWKRGVRIKDQGOHFRQVWUXFWLRQWKHIXOOWDQJ VFDOH KDQGOH DQG WKH KDOIWDQJ RQHSLHFH KDQGOH

7KHVHVLPSOHWRPDNHKDQGOHVFDQEHGXUDEOH DQGEHDXWLIXO,I\RXPDNHNQLYHVZLWKRQHRUERWKRIWKHVHPHWKRGVDQGWKHQZLVKWRGHYLVHVRPHRWKHUPHWKRG LW ZLOO QRW EH GLIILFXOW EHFDXVH \RX ZLOOKDYHSHQHWUDWHGWKHVHQVHRIWKHSUREOHP

'HVLJQLQJWKH.QLIH

1RZ WKDW \RX NQRZ ZKDW NLQG RI NQLIH \RXZDQW GUDZ D IXOOVFDOH RXWOLQH RQ D SLHFH RIFDUGERDUGRUSRVWHUERDUG $IWHU \RX IHHO VDWLVILHGZLWKWKHVLOKRXHWWHFXWLWRXWZLWKDUD]RUNQLIHRUEDQG VDZ3UHWHQG LW LV D UHDO NQLIH+RZGRHV LWIHHO".HHSLWDURXQGIRUDGD\RUWZRDQGVHHKRZ\RXU IHHOLQJV FKDQJH DERXW WKH VKDSH


67/266


68/266

&KDSWHU

&XWWLQJ2XWWKH%ODGH

$VVXPLQJ\RXKDYHFKRVHQ\RXUNQLIHVIXQFWLRQKDYHGHVLJQHGLWDQGFKRVHQWKHVWHHO\RXDUHUHDG\WRFXWRXWWKHURXJKVKDSH

8VH D FXWWLQJWRUFK RUDEDQGVDZ7KH FXWWLQJWRUFK OHDYHV MDJJHG HGJHV VR D ORW RI JULQGLQJ LVQHHGHGWRVPRRWKWKHPDQGWRUHILQHWKHVLOKRXHWWH0RUHRYHU LI WKH VWHHO LV QRW SURSHUO\ DQQHDOHG WKHFRQFHQWUDWHG KHDW IURP WKH WRUFK FDQ FDXVH VWUHVVOLQHVOLQHVRIZHDNQHVVWKDW\RXFDQQRWVHHWKDWZLOOODWHU EHFRPH FUDFNV %XW WKH WRUFK ZRUNV ILQH IRUFDUERQ VWHHO DQG LW PD\ EH PRUH DFFHVVLEOH WKDQ D

EDQG VDZ WKDW FDQ FXW KDUG VWHHO )XUWKHUPRUH \RXPD\ ILQG D FXWWLQJWRUFK IDVWHU WKDQ DEDQGVDZ IRUSURGXFWLRQ NQLIHZRUN HVSHFLDOO\ LI \RX DUH FXWWLQJNQLYHV IURP ODUJH SLHFHV RI VWRFN , KDYH KDG YHU\JRRG UHVXOWV XVLQJ WKH FXWWLQJ WRUFK IRU SURGXFWLRQZRUNZLWKFDUERQVWHHOVDZEODGHVWRFN/HWVDVVXPHWKHUHIRUH\RXZLOOXVHDFXWWLQJWRUFK6HHVHFWLRQRQEDQGVDZVLQ7RROVFKDSWHUS

'UDZLQJWKH.QLIHRQWRWKH6WHHO

)LUVW FOHDQ WKH VWHHO WKRURXJKO\ ,I LQIDFW\RXDUHXVLQJDQROGVDZEODGHJULQGWKHUXVWRIIZLWKDGLVFJULQGHURUVDQGSDSHUE\KDQGLIQHFHVVDU\

1H[WGUDZWKHVLOKRXHWWHRIWKHNQLIH,I\RXDUHXVLQJDFXWWLQJWRUFKWRFXWLWRXWPDNHWKHOLQHDERXWLQFKODUJHULQDOOGLUHFWLRQVWKDQ\RXZDQWWKHILQLVKHGVLOKRXHWWHWREHWRDFFRPPRGDWHIRUWKH


69/266

FOHDQXSJULQGLQJ8VHFKDONVRDSVWRQHPDUNLQJSHQRUZKDWKDYH\RXWRGUDZRXWWKHGHVLJQ,KDYHQRWIRXQG D PDUNHU WKDW ZLOO VKRZ XS RQ DOO NLQGV RIVXUIDFHVIRUH[DPSOHVPRRWKDQGSLWWHGWKHUHIRUH,

VRPHWLPHVVPRNHWKHVXUIDFHRIWKHVWHHOZLWKDORZDFHW\OHQHIODPHXQWLOWKRURXJKO\EODFNHQHGWKHQGUDZRXWWKHVKDSHVZLWKDSRLQWHGVWLFN

,IWKHNQLIHKDVDPROGHGJULSILQJHUJULSVLQWKHKDQGOHGRQRWGUDZWKHJULSVRQWRWKHVWHHOEXWOHDYHURRPIRUWKHPVRWKH\FDQEHJURXQGLQODWHU'RQRWGUDZLQWKHILQJHUJXDUGHLWKHUVLQFHWKLVZLOOEHPDGHRIEUDVV

,I\RXDUHPDNLQJDQXPEHURINQLYHVVDYHVWHHOE\GUDZLQJWKHPDVFORVHWRHDFKRWKHUDV\RXFDQ0DNHWKHHGJHVUXQORQJLWXGLQDOO\ZLWKWKHSLHFHRIVWHHOEHFDXVHWKLVLVPRVWOLNHO\WKHGLUHFWLRQRIWKH

JUDLQLQVLGHWKHVWHHO,I\RXDUHUHF\FOLQJXVHGVWHHOEHVXUHWRFKHFN

IRUDQ\FUDFNVWKDWPD\KDYHIRUPHGLQLWVSDVWOLIH

&XWWLQJRXWVRPHXWLOLW\VKHDWKEODQNVZLWKDWRUFK


70/266


71/266

ZKLFK UROO DZD\ IURP WKH IODPH RQ WKHWRSRIWKHVWHHOEHFRPHVXSHUKHDWHGDQGH[SORGH LQFUHDVH DFHW\OHQH SUHVVXUH RUGHFUHDVH R[\JHQ SUHVVXUH DW WKH WDQNUHJXODWRU

,IXVLQJDZLGHSLHFHRIVWRFNVWDUWZLWKWKLQ VKDSHV IDUWKHVW DZD\ DQG ZRUNWRZDUG \RXUVHOI RU \RX ZLOO EH FRRNLQJ\RXUKDQGVRYHUKRWVWHHO

&XWWLQJWKH6WHHOZLWKD%DQG6DZ

$OWKRXJKWKLVLVDVORZHUDQGPRUHGLIILFXOWPHWKRGRIFXWWLQJRXWWKHEODGHLWLVVXSHULRU

EHFDXVHLWLVPXFKPRUHSUHFLVHDQGWKHUHLVYHU\OLWWOHKHDWJHQHUDWHGZKLFKFRXOGVHWXSXQQHFHVVDU\VWUHVVHVLQWKHVWHHO

7R NHHS IURP UXLQLQJ DQ\ VWHHOFXWWLQJ EDQGVDZEODGHWKHILUVWUXOHLVWKDWWKHVWHHOWKDW\RXFXWPXVW EH SURSHUO\ DQQHDOHG ,I \RX EX\ IURP WKHIDFWRU\WKHVWHHOZLOOPRVWOLNHO\EHLQWKHDQQHDOHGVWDWHZKHQ\RXJHWLW,IQRWWKHQ\RXFDQWFXWLWZLWK D EDQG VDZ XQOHVV \RX DQQHDO WKH VWHHO\RXUVHOI

7R DQQHDO VDZEODGH VWHHO RU DQ\ ORZDOOR\FDUERQ VWHHO KHDW LW LQ D NLOQ WR DERXW )GXOOIDLQWUHGDQGFRROVORZO\IRUWKUHHKRXUVE\WXUQLQJWKHNLOQRIIZLWKWKHVWHHOVWLOOLQVLGH2UKHDW WKH EODGH DQG SODFH LW LQ SRZGHUHG OLPH RUILUHSODFHDVKHVWRKROGWKHKHDWLQWKHVWHHOFDXVLQJLWWRFRROYHU\VORZO\

7KH PHWDOFXWWLQJ EODGH PXVW EH RI ILQHTXDOLW\DQGZLWKWHHWKVPDOOHQRXJKVRWKDWWKUHHDUH RQ WKH ZRUNSLHFHDW DOO WLPHV 6R IRULQFKVWHHO \RX VKRXOG XVH DQ HLJKWHHQWRRWKSHULQFKEODGH

,W LV DOVR LPSRUWDQW WKDW W VDZ UXQV DW WKH

ULJKW VSHHG 8QIRUWXQDWHO\ IRU FXWWLQJ VWHHO WKHULJKWVSHHGLVYHU\YHU\VORZ$URXQG)30IRUPRVWVWHHOFXWWLQJEODGHV,KDGWRPRGLI\P\VDZZLWKDGRXEOHVHWRIODUJHDQGVPDOOSXOOH\VWRPDNHLW UXQ VORZO\ HQRXJK VR WKDW LW GLGQW NQRFN WKHWHHWKRIIWKHEODGH


72/266

8VXDOO\LI,KDYHDQXPEHURINQLYHVWRFRPSOHWH,SHUIRUPHDFKVWHSRQDOOWKHNQLYHVLQWKHIROORZLQJRUGHUFXWWKHPDOORXWFOHDQWKHVLOKRXHWWHVWKHQJULQGDOOWKHHGJHVHWFHWHUD6HHFKDSWHUS

,I\RXFXWRXWWKHNQLIHZLWKDWRUFKWKHVXEWOHDVSHFWVRIWKHIRUPDUHVKDSHGRQWKHJULQGLQJZKHHO,I\RXXVHDEDQGVDZWKHGHVLJQFDQEHPRUHQHDUO\SHUIHFWHGGXULQJWKHSURFHVVRIGUDZLQJRUWUDFLQJLWRQWRWKHVWHHO,QHLWKHUFDVH\RXZLOOOLNHO\EHUHILQLQJWKHVKDSHZLWKWKHZKHHO

5HILQLQJWKH6KDSH

$NQLIHKDVPRYHPHQWHYHQZKHQLWLVO\LQJRUWKHWDEOH7KLVPRYHPHQWLVWKHWRWDOLQWHUSOD\RIWKHIRUFHVRIWKHOLQHVWKDWGHVFULEHLW6R\RXPXVWDVN\RXUVHOIZKDWZLOOWKHNQLIHEHXVHGIRU"


73/266

JHQHUDWHDVXEWOHIHHOLQJWKDWLVWKHVRXOELUWKRIWKHNQLIHDQGWUDQVODWHWKLVIHHOLQJLQWRWKHRXWOLQHRIWKHNQLIH7KHUHDGHUPXVWXQGHUVWDQGWKDW,DPQRWWU\LQJWREHSRHWLFKHUH WKLV LV DQDFWXDONQLIHPDNLQJSURFHVVRUWHFKQLTXHWKHVXEWOHWUDQVIHURIWKHLQQHU

LPSXOVHRIWKHNQLIHIURPLQVLGH\RXUVHOIRXWWRWKHSK\VLFDOZRUOGLQWKHIRUPRIWKHNQLIH,WLVRQHRIWKH DEVROXWHO\ FUXFLDO HOHPHQWV LQ VXFFHVVIXONQLIHPDNLQJ

)LUVW JULQG RII DOO URXJK WRUFK PDUNV LI DQ\IURPDURXQGWKHHGJHOHDYLQJDFRPSOHWHO\FOHDQDQGVTXDUH HGJH DURXQG WKH HQWLUH NQLIH*ULQG LQ WKHILQJHUJULSVLIWKHNQLIHLVWRKDYHDPROGHGKDQGOH)LUVWGUDZWKHPLQSHQFLODQGWKHQJULQGDZD\WKHXQZDQWHG VWHHOXVLQJDQRYHUODSSHGURXJKDEUDVLYHEHOWRQWKHEHOWJULQGHU

+ROGWKHNQLIHDQGSUHWHQGWREHXVLQJLW6ZLQJ

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


74/266

\RXPXVWWULPRXWRQO\WKHXQQHFHVVDU\DUHDVRIVWHHOVWRFN OHDYLQJ WKRVH VWUXFWXUDO OLQHV WKDW IDLWKIXOO\FRQYH\WKHDFWLRQ


75/266


76/266

&KDSWHU

*ULQGLQJWKH%ODGH

7KLV LV RI FRXUVH WKH HVVHQWLDO VWHS LQNQLIHPDNLQJ ,W LV DOVR RQH RI WKHPRVW FUXFLDO DQGGLIILFXOW 7KHUH DUH D QXPEHU RI GLIIHUHQW ZD\V WRJULQGDEODGHJLYLQJLWDQ\WKLQJIURPDFRQYH[WRDFRQFDYHVKDSH

7\SHVRI*URXQG(GJHV

&RQVLGHUWKHVHEODGHFURVVVHFWLRQVDQGLPDJLQHWKHEHVWXVHVIRUHDFK)RUH[DPSOHEODGHNQRZQDVDFRQYH[EHYHOLVEHVWIRUFXWWLQJWKLQJVZKLFKDUH

KHDY\DQGKDUGZKHUHDODUJHDPRXQWRIIRUFHLVXVHG

*ULQGLQJDVPDOOXWLOLW\NQLIHXVLQJDZRUNUHVWDQGSUHVVXUHSODWHEHKLQGWKHEODGH


77/266

VXFKDVERQHRUZRRGEHFDXVHWKHFXWWLQJHGJHLVEDFNHGE\WKLFNKHDY\VWHHOZKLFKLVXQOLNHO\WREUHDN %ODGH NQRZQDV WKH FRQFDYH EHYHOLV VXLWHG WR VRIWHU PDWHULDOV VXFK DV YHJHWDEOHV

RUPHDWZKHUHWKHEODGHFXWVGHHSO\SURGXFLQJO LW WOH IULFW LRQ ,WV D OVR NQRZQ DV D KRO ORZJULQG EHFDXVH WKH VLGH RI WKH NQLIH LV DFWXDOO\KROORZHGRXWDORQJWKHHGJH,WFXWVPRUHHDVLO\EXWLVQRWDVVWURQJ$VWKHFXWWLQJHGJHZHDUVEDFN DIWHU PDQ\ VXEVHTXHQW VKDUSHQLQJV WKHFRQYH[ EODGH EHFRPHV WKLFNHU DQG WKLFNHU DQGWKXV KDUGHU DQG KDUGHU WR VKDUSHQ ZKLOH WKHFRQFDYHEODGHVWD\VDWDERXWWKHVDPHWKLFNQHVVIRUPDQ\PDQ\VKDUSHQLQJV

%ODGHNQRZQDVDVWUDLJKWEHYHORUVLPSOHZHGJH LV KDOIZD\ EHWZHHQ WKH RWKHU WZR

VKDSHV 7KH LQWHQGHG XVH RI WKH NQLIHGHWHUPLQHV WKH VKDSH DQG WKLFNQHVV RI WKHFXWWLQJ HGJH DV ZHOO DV WKH ZD\ LQ ZKLFK LW LVJURXQG)RUSHUFHQWRIP\NQLYHVUHJDUGOHVVRIWKHXOWLPDWHEHYHOGHVLUHG,VWDUWRXWZLWKDKROORZ JULQG ,I WKH NQLIH ZLO O KDYH D FRQYH[EHYHORUDVWUDLJKWEHYHOWKHQ,GRQRWWDNHWKHKROORZ JULQG WRR GHHS , KRO ORZJULQG PRVWNQLYHV DQG GR DERXW SHUFHQW RI WKH VWRFNUHPRYDO ZLWK WKH KHDY\ JULQGVWRQH 7KLV LV DKLJKVSHHG ZKHHO GHVFULEHG LQ WKH WRRO VHFWLRQ

6HHS

7KH3URSHU$WWLWXGH


78/266

*ULQGLQJ7HFKQLTXH

%HJLQ JULQGLQJ WKH EODGH WDNLQJ ORQJ HYHQSDVVHVDORQJWKHIXOOOHQJWKRIWKHEODGH%HFDUHIXOQRW WR VWRS LQ DQ\ RQH SODFH RU LW ZLO O EHFRPHGHHSHULQWKDWVSRW6LQFHWKLVLQHYLWDEO\KDSSHQVGHYHORSWKHFDSDFLW\WRIHHOWKHHYHQQHVVRI\RXUZRUNVR\RXDXWRPDWLFDOO\OLJKWHQXSZKHQ\RXFRPH WR D GHSUHVVLRQ RU KROG ORQJHU ZKHQ \RXFRPH WR D KLJK VSRW *ULQGLQJ O LNH O LIH LWVHOI EHFRPHV VHOIFRUUHFWLYH GXH WR WKLV LPPHGLDWHIHHGEDFNWKURXJK WKH VHQVHRI WRXFKDSURFHVVRIFRPPXQLFDWLRQ


79/266


80/266

EHOW JULQGHU XVLQJ D IUHVK FRDUVHEHOW XQOHVV\RXDUH OXFN\ HQRXJK WRKDYH DZDWHUFRROHG JULQGLQJZKHHORUDZDWHUFRROHGEHOWJULQGHULQZKLFKFDVH\RXFDQXVHWKHEHOWVDOLWWOHORQJHU

5HPHPEHULI\RXZDQWDVPRRWKMREJULQGWKH

EODGHDWOHDVWWKUHHRUIRXUPRUHWLPHVZLWKWKHEHOWJULQGHU HDFK WLPH ZLWK D SURJUHVVLYHO\ ILQHU JULWEHOW'RQW JULQG YHU\GHHSO\ ZLWK WKHZKHHO RU LWPD\EHFRPH WRR WKLQIRUEHOWJULQGLQJ2EYLRXVO\KRZGHHSO\WRJRHDFKWLPHLVDPDWWHURISUDFWLFH

*ULQGLQJWKHWLSRIWKHEODGHZKHUHWKHHGJHWDSHUVRIILVGLIILFXOWHVSHFLDOO\JHWWLQJWKHKROORZJULQG WR JR FOHDU WR WKH WLS7KLVPHDQV KDYLQJDYHU\WKLQWLSEXWQRWVRWKLQDVWREHZHDN7KHOLQHRIWKHKROORZJULQGVKRXOGEHPRVWO\SDUDOOHOZLWKWKH HGJH EXW SHUKDSV WDSHULQJ VOLJKWO\ WRZDUG WKHHGJHQHDUWKHWLS


81/266

PDNHWKHGHHSHVWFXWVDORQJWKHHGJHZKHUHWKH\DUHHDVLO\VHHQDQGIHOW6LPSO\JULQGKHDYLHVWDORQJWKHHGJHWDSHULQJDFFRUGLQJWRWKHGHVLJQRIWKHNQLIH

)LQJHU*XDUGIRU'URSSHG%ODGH

:KDWHYHU WKH W\SH RIEODGHJULQG FDUHIXOO\ DQG

HYHQO\ ,I WKH GURSSHG EODGH LV WR VHUYH DV D ILQJHUJXDUGUHPHPEHUWROHDYHXQJURXQGHGDQLQFKRUVRRQWKHHQGRIWKHEODGHQHDUHVWWKHKDQGOH0DNHVXUHWKLVDUHDZKHUHWKHJULQGLQJVWRSVDWWKHEDVHRIWKHEODGHWRIRUPDILQJHUJXDUGLVJURXQGYHU\FOHDUO\DQGVKDUSO\'RQRWOHDYHWKHXQJURXQGILQJHUJXDUGRQ FKHIV NQLYHV EHFDXVH D ILQJHU JXDUG LV QRWQHFHVVDU\DQGWKLVWKLFNDUHDZLOOUHVXOWLQDQXQHYHQHGJHDIWHUPDQ\VKDUSHQLQJV

0RUHRYHUEHVXUHWKHJULQGLQJLVHYHQRQERWKVLGHVQHDUWKHKDQGOH5HPHPEHUWRRWKDWWKLVLVWKHURXJKJULQGLQJVWHS,I\RXKDYHDJRRGEHOWJULQGHU\RXZLOOEHDEOHWRUHILQHWKHTXDOLW\DQGGHILQLWLRQRIWKHJULQGLQJDVZHOODVWKHVXUIDFHWH[WXUH$IWHU\RXILQLVKWKHJULQGLQJVKDUSHQWKHEODGH

RQWKHJULQGVWRQH


82/266


83/266

QHVVDW LQFK IURP WKH FXWWLQJHGJH DIWHU WKH\KDYHEHHQKHDWWUHDWHGDQGUHJURXQG,KDYHFRPHWR IDYRU EODGHVZLWK D IDLUO\ ILQH JULQG ERWK IRUNLWFKHQ NQLYHV DQG IRU RXWGRRU XVH 7KH RQO\H[FHSWLRQVDUHFOHDYHUV DQGKHDY\EXWFKHU NQLYHVDQGVRPHKHDY\KXQWLQJDQGVXUYLYDOW\SHNQLYHV

1RZ\RXKDYHDQLGHDRIWKHRSWLPDOWKLQQHVVRIWKHEODGHHGJHGXULQJKHDWWUHDWLQJULJKW",IVRJULQGXQWLO WKH EODGH LV DOPRVW WKDW WKLQ WKHQ XVH D EHOWJULQGHUWRILQLVKWKHEODGHIRUKDUGHQLQJ

3UHSDULQJWKH%ODGHIRU+HDWWUHDWLQJ

$ IDLUO\ VPRRWK VXUIDFH ILQLVK HVSHFLDOO\DURXQGWKHSHULPHWHURI WKHEODGHLV LPSRUWDQWWRNHHSVWUHVVHVDWDPLQLPXPGXULQJWKHKHDWWUHDWLQJSURFHVV7KHQH[WRSHUDWLRQLVWRUHILQHWKHVXUIDFHRIWKHHQWLUHEODGHPDNLQJLWVPRRWKDQGSUHFLVHO\JURXQG

5HJULQGLQJWKH%ODGH

:RUN WKH EODGH RYHU WKH ZKHHO RI WKH EHOWJULQGHUMXVWDV\RXGLGZLWKWKHVWRQH5HPHPEHULI\RXWXUQWKHSRLQWRUHGJHRIWKHEODGHLQWRWKHEHOWWKHZKHHOZLOOFDWFK WKHEODGHGRLQJGDPDJHWRWKHEHOWWKHEODGHDQGSRVVLEO\WR\RXUKDQGV%HYHU\FDUHIXODERXWWKLV:RUNZLWKDERXWDJULWEHOWWREULQJWKHEODGH

GRZQ QHDU WR LWV GHVLUHG WKLFNQHVVDQG WR WDNHRXWWKHPDUNVOHIWIURPWKHKLJKVSHHGJULQGHUOHDYLQJDILQHUVHWRIJULWWUDFNV

1RZKHUHLVRQHVXEWOHEXWLPSRUWDQWSRLQW%HVXUHWRJHWDOORIWKHJULQGHUPDUNVRXWRIWKHEODGHEHFDXVH WKH\WHQGWREHGHFHSWLYHO\GHHS,I\RXGRQRWJHW WKHP RXWZLWKWKHJULWEHOW WKH\ZLOO EH

HYHQKDUGHUWRJHWRXWZKHQ\RXVWDUWZRUNLQJZLWKDILQHU EHOW %XW LI WKH JULQGLQJPDUNV DOO UXQ LQ WKHVDPHGLUHFWLRQLWLVKDUGWRVHHZKHQ\RXKDYHWKHGHHSHUPDUNVRXW


84/266

JULQG WRR GHHSO\ \RX PDNH WKH EODGH WRR WKLQ


85/266


86/266

%XLOGLQJWKH%ROVWHU)LQJHU

*XDUGDQG%XWW3ODWH

&KDSWHU

$EROVWHULVDSLHFHRUSLHFHVRIPHWDOMRLQHGWR WKH VKDQN EHWZHHQ WKH KDQGOH DQG WKH EODGH7KLV JLYHV WKH KDQGOH PDWHULDO ZKLFK LV XVXDOO\VRIW FRPSDUHG WR VWHHO DGGLWLRQDO VXSSRUW DQGSURWHFW LRQ DQG PD\ VHUYH WR VHDO WKH FUDFNVEHWZHHQ WKH KDQGOH DQG EODGH 7KLV SUHYHQWV WKHLQWUXVLRQ RI PRLVWXUH IURP IRRG RU SRVVLEO\EORRGZKLFKFDQFROOHFWDJDLQVWRUXQGHUQHDWKWKHKDQGOH

6RPHWLPHVWKHEROVWHULVH[WHQGHGGRZQZDUGWRIRUPDILQJHUJXDUGRUDEXWWSODWHPD\EHDGGHGWRJLYHWKHKDQGOHDGGLWLRQDOVXSSRUW7KHEXWWPD\DOVREHH[WHQGHGGRZQZDUGWRIRUPDKRRNIRUDILQJHUJULS

,W LV YHU\ FRPPRQ WR VHH D KDQGOH RI VRPHZDUP PDWHULDO VXFK DV ERQHZRRG RU SODVWLFZLWK D EUDVV VWDLQOHVV RU DOXPLQXP EROVWHU DQGEXWW

7KHUH DUH PDQ\ ZD\V WR DWWDFK WKH PHWDOSLHFHV WR WKH VKDQN 7KH EROVWHU RU ILQJHU JXDUG

PD\VLPSO\EHVORWWHGRUGULOOHGDQGVOLGRYHUWKHKDQGOHRUSDUWLDOWDQJWRUHVWDJDLQVWVWRSVDWWKHWRS DQGERWWRPRI WKHEODGH DQGEH KHOG E\ WKHSUHVVXUHRIWKHKDQGOH7KLVDUUDQJHPHQWLVQHLWKHUPRLVWXUHSURRIQRUYHU\VXSSRUWLYHIRUWKHKDQGOH

7KHPHWDOVPXVWEHWLJKWO\DQGVWURQJO\ERQGHGWRJHWKHUWRPDNHDVDWLVIDFWRU\EROVWHU7KUHHSRSXODU


87/266


88/266

%UD]LQJRQWKH%ROVWHUDQGRU%XWW&DS%UD]LQJLVIXVLQJWKHEUDVVGLUHFWO\RQWRWKHVWHHOIRUPLQJDYHU\VWURQJDQGYLVXDOO\SOHDVLQJXQLRQEHWZHHQWKHWZRPHWDOV%UD]HWKHEROVWHUSULRUWRWHPSHULQJEHFDXVHWKHKHDWJHQHUDWHGUXLQVDQ\NLQGRIKDUGQHVVLQWKHFDUERQVWHHOEODGH

&RPSOHWH WKH SROLVKLQJ VWHSV XS WKURXJK WKHJULWEHOWEHIRUHEHJLQQLQJWKHEUD]LQJSURFHVVEHFDXVHWKHDGGLWLRQRIDEROVWHUPDNHVLWDZNZDUGWRSROLVK 7KH EUD]LQJ DQG WHPSHULQJ SURFHVVZLOOFDXVHVFDOHDQGGLVFRORUDWLRQEXWWKHEODGHZLOOEHFRPSOHWHO\ VKDSHG ZLWKRXW DQ\ GHHS JULQGLQJPDUNV WR UHPRYH+RZHYHU GR QRW JHW WKH EODGHWRR WKLQ RU LW ZLOO ZDUS LQ WKH TXHQFKLQJ EDWK ,IWKLVDSSHDUVOLNHO\ILQLVKWKHVLGHRIWKHEODGHZLWKWKH JULW OHDYLQJ WKH JURXQG SRUWLRQ ZLWK WKHJULWPDUNVXQWLODIWHUWHPSHULQJ

:KDW.LQGRI%UDVV"

%UDVV FDQ EH REWDLQHG YHU\ UHDVRQDEO\ DW DJRRGVFUDS\DUGRUQHZDWDQRQIHUURXVPHWDOGHDOHU8VHSLHFHVIRUEUD]LQJWKDWDUHDWOHDVWLQFKRULQFKWKLFN

0DNHVXUH\RXUEUD]LQJEUDVVFRQWDLQVQROHDG7KH EUDVV WR XVH LV D PL[WXUH RI SXUH FRSSHU DQG]LQF 2WKHU W\SHV RI EUDVVPD\ FRQWDLQ VRPH OHDGZKLFKZLOOEXEEOHGXULQJWKHEUD]LQJSURFHVVOHDYLQJWKHZRUN ULGGOHG ZLWK KROHV OLNH 6ZLVV FKHHVH 7KLVFDQEHYHU\GLVWXUELQJHVSHFLDOO\LI\RXGRQWNQRZZK\XJO\KROHVIRUPLQ\RXUNQLIHEROVWHU$OWKRXJK\RX XVXDOO\ FDQQRW VHHWKHPXQWLO \RXEHJLQWRIDLUWKHZRUNGRZQWKHVHKROHVJHWELJJHUDQGELJJHUDV\RXWU\WRJULQGWKHPDZD\

7KHUHLVDWOHDVWRQHZD\WRWHVWWKHSXULW\RIEUDVV\RXPD\EX\DWDVFUDSGHDOHUVLQFHWKHSHUVRQLQFKDUJHLVXQOLNHO\WRNQRZWKHSDUWLFXODUTXDOLW\RIDJLYHQSLHFHRIEUDVV8VHDFXWWLQJWRUFKWRKHDWDFRUQHURIWKHEUDVVWRWKHPHOWLQJSRLQW3XUHEUDVV


89/266

ZLOOIRUPDQLFHVKLQ\URXQGEXEEOHRIOLTXLGUHGKRWEUDVVZKLOHEUDVVZLWKOHDGLQLWJHWVKDUGDQGURXJKOLNH EXEEO\ ODYD DQG JLYHV RII D GHQVH EOXH JUHHQVPRNH'R QRW EUHDWKH WKH VPRNH'R QRWEX\ WKHEUDVV

%ROVWHU&RQVWUXFWLRQIRUD)XOOWDQJ6ODE+DQGOH

,I \RX DUH FRQVWUXFWLQJ D SODLQ EROVWHU FXW RXWWZREUDVVHDUVVOLJKWO\ZLGHUWKDQWKHWKLFNQHVVRIWKHVFDOHVDQGDVORQJDVWKHZLGWKRIWKHNQLIHDWWKDWSRLQW,XVXDOO\XVH LVLQFKRU LQFKEUDVVSODWH6TXDUHWKHOLWWOHSLHFHVRIIZLWKWKHEHOWVDQGHUVRWKH\ILWQHDWO\DJDLQVWWKHVKDQN

,I\RXDUHPDNLQJDFRPELQDWLRQEROVWHUDQGILQJHUJXDUGXVHRQHSLHFH&XWRXWDVORWGRZQWKHFHQWHUOLQHIURPWKHWRSWKHH[DFWWKLFNQHVVRIWKHEODGH8VHDKDFNVDZRUWKHPHWDOFXWWLQJEODGHRIWKHEDQGVDZDQGDWKLQIODWILOHWRDFFRPSOLVKWKLV


90/266

0DNHWKHQRWFKHVVOLJKWO\VD\LQFKORQJHUWKDQWKHWKLFNQHVVRIWKHEUDVVVRWKHEXLOWXSDUHDVRQWKHVLGHVZLOOPHHWWKHEUDVVILOODWWKHWRS8VLQJWKHHGJHRIWKHEHOWDJDLQVWWKHIODWVWHHOEDFNLQJSODWHRIWKHEHOWJULQGHUFXWDQRWKHUQRWFKDORQJWKHVLGHVRIWKHEODGHMRLQLQJWKHIURQWHGJHVRIWKHWRSDQGERWWRPQRWFKHV0DNHWKHVHQRWFKHVRQWKHVLGHRIWKHVKDQNYHU\FOHDQDQGVKDUS7KH\ZLOOEHILOOHGZLWKEUDVVGXULQJWKHEUD]LQJSURFHVVDQGWKHQWKHEUDVVZLOOEHEHY

HOHGRIIIOXVKZLWKWKHVWHHOULJKWDORQJWKHQRWFK7KHQRWFKPDNHVWKHIXVHGMRLQWEHWZHHQWKHEUDVVDQGWKHVWHHOSHUIHFWO\VWUDLJKWDQGHYHQ

*RRYHUWKHQRWFKHVZLWKDILOHVRWKH\DUHVKDUSDQGSUHFLVH

'XULQJWKHILUVWEUD]LQJVWHSILOOWKHWRSQRWFKZLWKEUDVVIURPWKHEUD]LQJURG7KLVLQHIIHFWMRLQVWKHWZRSLHFHV:KHQ\RXILQLVKZLWKWKHEUD]LQJWKHUHZLOOEHDVLQJOHEUDVVSLHFHJRLQJFRPSOHWHO\DURXQGWKHVKDQN


91/266

&XWWLQJEUDVVHDUVIURPPLOOHGVWULS

&XWWLQJWKHVORWGRZQWKHFHQWHURIDSURVSHFWLYHEROVWHUILQJHUJXDUGZLWKDEDQGVDZ


92/266

8VLQJWKHEHOWJULQGWRSUHFLVHO\PLOORXWRSQRWFKRQDEROVILQJHUJXDUG


93/266

%UD]LQJ7HFKQLTXH,UHFRPPHQGSRZGHUHGUDWKHUWKDQOLTXLGEUD]LQJIOX[


94/266

RQ WKH VPDOO ZRUNSLHFH OHDYLQJ D JODVV\ KDUGWRUHPRYHUHVLGXH7RSURSHUO\IOX[WKHEDUHURGKHDWLWDQGGLSLWLQWRWKHSRZGHU

&OHDQWKHEUDVVSLHFHVZLWKDILQHIUHVKEHOW&ODPSWKHWZRSLHFHVRIEUDVVEROVWHURUWKHRQHSLHFHEROVWHUILQJHUJXDUGWRWKHVKDQNZLWKDSDLURI9LVH*ULSVWKHQKROGWKH9LVH*ULSVLQDYLVHVRWKDWWKHZRUNSLHFHLVDWDJRRGDQJOHIRUEUD]LQJ

8VHDKRWIODPHIURPDVPDOOZHOGLQJWLSDQGEUD]HDFURVVWKHWRSRIWKHVKDQNEHWZHHQWKHWZREUDVVHDUV)LOOWKHQRWFKFRPSOHWHO\PDNLQJVXUHWKDW

WKHURGPHOWVLQWRWKHEUDVVDQGIORZVUHDGLO\RQWRWKHVWHHO$IWHU WKLV DUHD LV ILOOHG UHPRYH WKH KRW NQLIH

IURPWKH9LVH*ULSVDQGSUHFLVHO\DGMXVWWKHDQJOHRIWKH HDUV DQG WKHQ IRUP D ILQH DQG WLJKW EHDGDURXQGWKHIURQWVLGHRIWKHEROVWHUEHWZHHQLWDQGWKHVKDQN

7U\QRWWROHDYHDQ\DLUSRFNHWVRUFUDFNV7KLVRSHUDWLRQZLOOREYLRXVO\UHTXLUHVRPHSUDFWLFHDWEUD]LQJ


95/266

)LOOLQJWKHWRSQRWFKWKXVMRLQLQJWKHWZREUDVVHDUVRIDEROVWHU

2QFHWKHWZRHDUVKDYHEHEUD]HGDWWKHWRSFKHFNWRVHLIWKH\DUHSUHFLVHO\VWUDLJKWDORQJWKHVLGHQRWFKHV,IQRWDGMXVWWKHPE\EHQGLQJWKHP

ZLWKSOLHUVZKLOHVWLOOKRW


96/266


97/266

EUD]LQJURGWRIORZLQWKHUH2WKHUZLVHEXEEOHVZLOODSSHDUZKHQ\RXIDLUGRZQWKHEUD]HGVXUIDFH,IWKLVRFFXUVLQVSLWHRI\RXUHIIRUWVVSULQNOHRQVRPHPRUHIOX[DQGWU\JRLQJRYHUWKHEHDGDJDLQWKLVWLPHPDNLQJVXUHWRKHDWLWULJKWGRZQWRWKHYHU\ERWWRPFRUQHURIZKHUHWKHWZRPHWDOVFRPHWRJHWKHU.HHSWKHZRUNFOHDQ%UD]HWKHEUDVVSRLQWDWWKHERWWRPHGJHRIWKHWDQJDQGEHVXUHWKDWWKHEUD]LQJURGIORZVGHHSO\LQWRWKHFUDFNDWWKLVSRLQW

,IFDUERQGHSRVLWVEXLOGXSUHGXFLQJWKHEUDVVIORZVSULQNOHDOLWWOHSRZGHUHGIOX[RQWKHKRWZRUNSLHFH


98/266

WKHKDQGOHDQG\RXZRQWZDQWWRXQFRYHUDFUDFNRUDEXEEOHEHWZHHQWKHEUDVVDQGWKHVWHHO

'RQRWEUD]HWKHLQVLGHRIWKHEROVWHUZKHUHWKHKDQGOH VODEEXWWVXSDJDLQVWLW LQVWHDGOHDYHWKLVDUHDFOHDQ DQG VTXDUH /HW PH UHSHDW WKLV 'R QRW EUD]HDORQJ WKH LQVLGH RI WKHEUDVVZKHUH WKH VODEEXWWVXSDJDLQVWLWRUWKHMRLQWZLOOORRNPHVV\DQGEHKDUGWRILW

%UD]LQJWKH%XWW3LHFH

,I\RXDUHDOVREUD]LQJDEXWWSLHFHSURFHHGLQWKHVDPHPDQQHU

5HPHPEHU WR OHDYH WKH LQVLGH VXUIDFHV RI WKHEUDVV DQG WKH WDQJ QLFH DQG FOHDQ DQG VTXDUH WRUHFHLYHWKHVODEV

)DLULQJ'RZQWKH%ROVWHU

%HIRUHWHPSHULQJWKHEODGHIDLUGRZQWKHEUDVVVR WKDW LWPDNHV D VPRRWKFXUYHG WUDQVLWLRQ WR WKHVLGHRIWKHEODGH7KHEUDVVVKRXOGPHHWWKHVWHHODWWKHQRWFKRQHDFKVLGHRIWKHEODGH8VHWKHFRUQHURIWKHEHOWZKHHOZLWKWKHEHOWRYHUODSSHGDQ VLQFKWRUHDFKWKLVDUHD*ULQGWKHEUDVVHQRXJKWRVHHWKDWWKHUHDUHQREXEEOHVRUJDSVLQWKHEUD]LQJDQGJULQGWKHILOODWWKHWRSDQGERWWRPRIWKHEROVWHUIOXVKZLWKWKHWDQJ3URFHHGWRVKDSHWKHEROVWHUILQJHUJXDUG


99/266

)DLULQJGRZQWKHILOOEHWZHHQWKHVLGHRIWKHEODGHDQGWKHEROVWHU,WGRHVQWORRNOLNHLWLQWKHSLFWXUHEXWWKHVWLIIQHVVRIWKHHGJHRIWKHEHOWKDVEHHQEURNHQGRZQWRSURGXFHDURXQGHGILOOEHWZHHQWKHWZRVXUIDFHV

&RPSOHWLQJWKHDERYHRSHUDWLRQWKLVWLPHIDLULQJGRZQWKHILOODVLWUHDFKHVWKHIDFHRIWKHEROVWHU


100/266


101/266

&OHDQLQJ WKH DUHDZKHUH WKH GURSSHGEODGH IRUPV D ILQJHU JXDUG


102/266

&OHDQLQJWKHVLGHVRIWKHEROVWHULQSUHSDUDWLRQIRUKDUGHQLQJ$OVREHVXUHWKDWWKHVLGHVRIWKHEODGHKDYHEHHQFOHDQHGXSQLFHDQGVKLQ\IURPWKHEUD]LQJSURFHVV,KDYHVHHQVRPHW\SHVRIDFLGLFEUD]LQJIOX[HDWSLWVLQWKHVLGHVRIWKHEODGHGXULQJWKHKDUGHQLQJKHDWWUHDWPHQW

7ZRYLHZVVKRZLQJWKHILQJHUJXDUGEHLQJFDUYHGRXWWRILWDJDLQVWWKHILQJHUXVLQJWKHVRIWHQHGHGJHRIWKHEHOWDURXQGWKHPHWDOHGJHRIWKHEDFNVWRS


103/266

5HEUD]H WKH SLHFH LI \RX ILQG DQ\LQVXIILFLHQFLHV 5HPHPEHU \RX FDQQRW UHEUD]HRQFHWKHEODGHLVWHPSHUHGXQOHVV\RXUHWHPSHUDVZHOO

5HPRYLQJD+ROH

+ROHV FDXVHG E\ LPSXUH EUDVV FDQQRW EHUHSDLUHGZLWKRXWUHEUD]LQJLQWKHIROORZLQJPDQQHU)LUVWFRPSOHWHWKHWZRUHPDLQLQJVWHSVLQWKHKHDWWUHDWLQJSURFHVVVRWKDWWKHDUHDDURXQGWKHEROVWHULVDQQHDOHG8VLQJDVPDOOELWWKDWZLOOUHDPRXWWKHKROH GULOO D VPDOO KROH VWUDLJKW GRZQ WKURXJK WKHEXEEOHDQGLQWRWKHVWHHORIWKHNQLIHVKDQN'ULOODWOHDVW

WKUHH WLPHV GHHSHU WKDQ WKH GLDPHWHU RI WKH KROH


104/266

%XLOGLQJD%ROVWHUIRUD3DUWLDOWDQJ2QHSLHFH+DQGOH

8VXDOO\WKLVW\SHRIKDQGOHLVPDGHRIERQHRUKRUQ

,I\RXKDYHGHVLJQHGDQGVKDSHGWKHNQLIHSURSHUO\WKHUHVKRXOGEHDLQFKWDQJH[WHQGLQJDERXWLQFKHV


105/266

7KUHHYLHZVRIDILQLVKHGEROVWHUILQJHUJXDUG


106/266

QLFHDQGVTXDUHDQGUHDPRXWWKHKROHLQWKHEUDVVSLHFHZLWKDODUJHUGULOOELW1LFNRIIWKHWRSDQGSRVVLEO\WKHERWWRPFRUQHURIWKHEODGH7KLVZLOODOORZWKHEUD]LQJWREHQLFHDQGHYHQDOOWKHZD\DURXQG

,IWKHEROVWHUKDVDILQJHUJXDUG\RXGRQRWQHHGDQRWFKDWWKHERWWRPEHFDXVHWKHEUDVVLVEXLOWXSLQWKLVDUHD%UD]HWKHEROVWHUILOOLQJWKHDUHDLQWKHIURQWRIWKHEROVWHUDVGHVFULEHGLQWKHEUD]LQJWHFKQLTXHVHFWLRQ/HDYHWKHEDFNDUHDXQEUD]HG'RQRWZRUU\DERXWWKHKROHLQWKHEDFNRIWKHEROVWHUZKHUHWKHKDQGOHEXWWVXSDVLWZLOOEHILOOHGLQZLWKHSR[\)DLUGRZQDQGVKDSHWKHEROVWHURUEROVWHUILQJHUJXDUG7KHEODGHLVQRZUHDG\IRUWHPSHULQJ5HIHUWRFKDSWHUIRULQVWUXFWLRQVRQILQLVKLQJWKHKDQGOH


107/266

6LOYHUVROGHULQJWKH%ROVWHUDQG%XWW&DS0DQ\NQLIHPDNHUVSUREDEO\WKHPDMRULW\DWWDFKEUDVVRUQLFNHOVLOYHUSLHFHVWRWKHVKDQNYLDORZWHPSHUDWXUHVLOYHUVROGHU7KLVLVGRQHDIWHUWKHEODGHKDVEHHQFRPSOHWHO\KHDWWUHDWHGDQGFOHDQHGXS6LQFHVROGHUPHOWVDW)WKHZRUNFDQEHGRQHZLWKDSURSDQHWRUFKDQGLI

GRQHSURSHUO\WKHUHLVOLWWOHGDQJHURIORVLQJKDUGQHVVLQWKHVWHHO6ROGHULQJLVVLPLODUWREUD]LQJH[FHSWWKDWWKHVROGHULVQRWXVHGWRILOOODUJHDUHDVEXWDFWVDVDERQGIRUWLJKWO\ILWWLQJWKHSLHFHVRIPHWDO,KDYHQRWXVHGWKLVPHWKRGEXW,ZLOOWHOO\RXZKDW,NQRZDERXWLW

&OHDQWKHNQLIHDQGFRPSOHWHO\FOHDQWKHEUDVVSLHFHV:UDSWKHEODGHZLWKDZHWUDJWRSUHYHQWDFFL


108/266

GHQWDOKHDWLQJDQGORVVRIKDUGQHVV3ODFHWKHVKDQNLQDYLVHDQGFODPSWKHEUDVVSLHFHWRWKHVKDQNLQ

WKH SURSHU SODFH $V \RX GR WKLV SODFH D VPDOODPRXQW RI VLOYHU VROGHU EHWZHHQ HLWKHU WKHVKDQN DQG ZRUNSLHFH RU DW WKH WRS RQ WKH FUDFNEHWZHHQ WKH SLHFHV +HDW ERWK WKH VKDQN DQG WKHEROVWHU VORZO\ DQG HYHQO\ EHORZ WKH EROVWHUZLWK DYHU\ VPDOO IODPH IURP WKH ZHOGLQJ WLS RU SURSDQHWRUFKXQWLOWKHVROGHUEHJLQVWRIORZ6RPHIOX[ZLOODLGLQWKLV,IWKHEROVWHUVROGHUIRUPVDWLJKWOLWWOHEDOODQGUHIXVHVWRIORZWKHQHLWKHUWKHPHWDOLVGLUW\FRQWDPLQDWHGRU\RXKDYHKHDWHGWKHVROGHUKRWWHUWKDQWKHZRUNSLHFH

7KHSLHFHVPXVWILWWRJHWKHUSHUIHFWO\VRWKDWWKHVROGHUZLOOIORZHYHQO\DQGIRUPDFOHDQERQG7KHEXWWSLHFHLIDQ\LVPDGHDQGVROGHUHGLQWKHVDPHIDVKLRQDVWKHEROVWHU


109/266

JXDUGV7KHVHSLHFHVDUHXVXDOO\MRLQHGWRWKHVWHHOVKDQNDIWHUWHPSHULQJZLWKORZWHPSHUDWXUHVLOYHUVROGHURUE\SLQQLQJ

&RQQHFWLQJWKH%ROVWHUZLWK3LQV

+ROHVDUHGULOOHGWKURXJKWKHEUDVVDQGWKHVKDQNDQGSLQVDUHGULYHQFRPSOHWHO\WKURXJKDQGSHHQHGDWHDFKHQG3HHQLQJWKHEUDVVURGPDNHVLWDOLWWOHWKLFNHUDWHDFKHQGVRWKDWLWZLOOKROGILUPO\'ULOOWKHKROHWKHH[DFWVL]HRIWKHURGVRLWILWVVQXJO\&RXQWHUVLQNWKHKROHVDWHDFKHQGVRWKDWZKHQ\RXSHHQWKHHQGVRIWKHURGWKH\ZLOOH[SDQGVOLJKWO\DQGEHFRPHZHGJHGLQFRPSOHWHO\ILOOLQJWKHKROH,IWKLVLVSURSHUO\GRQH\RXFDQJULQGWKHZRUNIOXVKZLWKYLUWXDOO\QRVLJQRIWKHKROHDQGSLQ


110/266

+ROGLQJWKHSLHFHVWRJHWKHUZKLOHGULOOLQJLVGLIILFXOW:LWKDSDLURI9LVH*ULSVWXUQHGVLGHZD\VDQGVKLPPHGXSZLWKDSLHFHRIZRRG\RXFDQGULOORQHKROHVHWWKDWSLQWKHQWXUQWKHNQLIHDURXQGLQWKH9LVH*ULSVDQGGULOOWKHRWKHUKROH


111/266


112/266

&KDSWHU

+HDWWUHDWLQJ

WKH&DUERQ6WHHO%ODGH7HFKQLTXHV IRUPDNLQJ WKHVWHHO WRXJKDQGKDUG

DUHGHVFULEHGLQWKLVVHFWLRQ7KHUHDUHWKUHHSDUWVWRFRPSOHWHO\KHDWWUHDWLQJDFDUERQVWHHOEODGHKDUGHQLQJ ZKLFK LV KHDWLQJ WKH VWHHO WR FKHUU\ UHG DQGTXHQFKLQJ LQ RLO RU D EULQH VROXWLRQ WHPSHULQJ RUGUDZLQJ ZKLFK LV WDNLQJ RXW WKH EULWWOHQHVV E\VORZO\ KHDWLQJ WKH VWHHO LQ DQ RYHQ XQWLO LW WXUQV DFHUWDLQ SUHVFULEHG FRORU DQG DQQHDOLQJ RI WKH WDQJDQGEDFNERQHRIWKHNQLIHZKLFKLVKHDWLQJWKHVHSRU

WLRQVRIWKHVKDQNWRDGHHSEOXHFRORUIROORZHGE\VORZFRROLQJZKLFKPDNHVWKHVWHHOWRXJKDQGIOH[LEOHVRWKHEODGHFDQQRWVQDS

+DUGHQLQJWKH%ODGH

7RKDUGHQWKHVWHHOEULQJWKHHQWLUHEODGHWRDQHYHQEULJKWUHGRU WR )WKHQSOXQJHLWLQWRDTXHQFKLQJEDWK%HVXUHWKHWRQJVRUUDFNKROGLQJWKHEODGHGRQRWFRYHUDFUXFLDOHGJHDUHDRQO\HLWKHUWKHEDFNRIWKHEODGHRUWKHKDQGOHDUHD


113/266

OHQJWKRIWKHNQLIHEODGHDQGRQO\DERXWLQFKHVZLGHIRURSWLPDOKHDWLQJVSHHG$QRWKHUSRVVLEOHKHDWLQJPHWKRGLVWRPDNHDORQJQDUURZHQFORVXUHRYHUWKHJUDWHRIDIRUJHXVLQJDUDFNWRKROGWKHEODGHXSULJKW,IWKLVDUUDQJHPHQWLVSURSHUO\GRQHKHDWLQJLVTXLFNDQGHYHQEXWYHU\

FULWLFDO8VHVRIWEODFNVPLWKVFRDODVWKHIXHO6HHFKDSWHURQ7RROVS:KDWHYHUKHDWLQJPHWKRGVDUHXVHGWKHSDUWLFXODUHIIHFWVRIWKHKDUGHQLQJWUHDWPHQWZLOOEHGHWHUPLQHGE\VHYHUDOIDFWRUV

O7KHZDUSDJHRIWKHEODGHZLOOEHGHWHUPLQHGE\ WKH HYHQQHVV ZLWKZKLFK WKH KHDW LV DSSOLHGDQGWKHVWUHVVHVDOUHDG\ZLWKLQWKHVWHHO

7KHDPRXQWRIGLVFRORUDWLRQRIWKHVWHHOVVXUIDFHZLOOEHGHWHUPLQHGE\WKHSXULW\RIWKHHQYLURQPHQWZKHQWKHVWHHOLVUHGKRW

7KHDPRXQWRIVXUIDFHGHFDUEXUL]DWLRQZLOOEHGHWHUPLQHGE\WKHWLPHDQGWHPSHUDWXUHRIWKHVXSHUKHDWHGFRQGLWLRQ

7KHDPRXQWRILQWHUQDOGHFD\RIWKHVWHHOZLOOEHGHWHUPLQHGE\WKHWLPHDQGWHPSHUDWXUHRIWKHVXSHUKHDWHGFRQGLWLRQ

7KHKDUGQHVVDQGWRXJKQHVVRIWKHVWHHOZLOOEHGHWHUPLQHGE\WKHVWHHOWHPSHUDWXUHDWTXHQFKLQJWKHW\SHRIEDWKDQGLWVWHPSHUDWXUHLQDGGLWLRQWRWKHPHWDOOXUJLFDOFKDUDFWHULVWLFVRI

WKHVWHHOLWVHOI

/HWVGLVFXVVHDFKRIWKHVHIDFWRUV

:DUSDJH

:DUSLQJRFFXUVZKHQWKHDPRXQWRIVWUHVVLQRQHDUHDRIVWHHOFKDQJHVLQUHODWLRQWRWKHVWUHVVLQDQDGMRLQLQJDUHD,IDVLGHRIWKHEODGHLVKHDWHGWKH


114/266

PROHFXODUWHQVLRQRQWKDWVLGHLVUHOD[HGZKLOHWKH VWUXFWXUH RQ WKH IDU VLGH RI WKH EODGHUHPDLQV ILUP FDXVLQJ WKH LQWHUQDO VWUXFWXUH RQWKH KHDWHG VLGH WR EHJLQ WR FRPSUHVV VOLJKWO\7KLVZLOOFDXVHWKHEODGHWRVZD\DZD\IURPWKH

KHDWVRXUFH:KHQWKHVWHHOFRROVLWUHWDLQVDOORUSDUWRIWKLVZDUSDJH,PDGHDQHOHFWULFNLOQIRUWHPSHULQJWKDWKROGVXSWRWZHOYHEODGHVVLPXOWDQHRXVO\,WZRUNVDGHTXDWHO\EXWWKHEODGHVFORVHVWWRWKHKHDWLQJHOHPHQWVRFFDVLRQDOO\FRPHRXWZDUSHG7KLVLVQRWQHFHVVDULO\DIDWDOSUREOHPEHFDXVHZLWKSURSHUDQQHDOLQJDVGHVFULEHGEHORZWKHEODGHFDQXVXDOO\EHVWUDLJKWHQHG6RPHWLPHVVWHHOZLOOZDUSHYHQLIKHDWHGHYHQO\7KLVLVGXHWRXQHYHQVWUHVVDOUHDG\SUHVHQW

ZLWKLQWKHVWHHOSULRUWRKHDWLQJ/HWVVD\WKHEODGHZDVRULJLQDOO\ZDUSHGZKHQFXWRXWZLWKWKHFXWWLQJWRUFKRUSHUKDSVWKHRULJLQDOVWRFNKDGDEHQGLQLW7KLVEHQGZDVUHPRYHGE\KDPPHULQJRULQUROOLQJZKLFKGLGQRWKLQJRWKHUWKDQSODFHVWUHVVHVLQWKHVWHHOWRFRPSHQVDWHIRUWKHZDUSDJH+RZHYHUGXULQJWKHKHDWLQJWKLVVWUHVVLVUHPRYHGDQGVRPHSRUWLRQRIWKHRULJLQDOZDUSDJHZLOOWKHQEHFRPHPDQLIHVW:DUSDJHSUHVHQWDIWHUTXHQFKLQJLVWKHUHVXOWRIWKHLQWHUSOD\RIWKHVWUHVVHVZLWKLQWKHVWHHOLQUHODWLRQWRWKHTXDOLW\RIKHDWDIIHFWLQJLW

'LVFRORUDWLRQ

:KHQWKHVWHHOLVDWDKLJKWHPSHUDWXUHWKHSRUHV RU DUHDV EHWZHHQ WKH JUDLQV RI VWHHO DUHZLGH RSHQ *DVHRXV SDUWLFOHV VPDOO HQRXJK WRHQWHUWKHVHSRUHVPD\EHDEVRUEHGDQGSURGXFHXJO\ GLVFRORUDWLRQ WKDW FDQ JR GHHSHU LQWR WKHV WHHO 7KH UHGKRW EODGH DFWV DV D VSRQJH IRU IXPHVDQGJDVVHVVRVXOIXUDQGRWKHUJDVVHVZLOOEHDEVRUEHGLQWRWKHVXUIDFHRIWKHNQLIHLIWKHKHDW EHLQJ XVHG LV IURP LQFRPSOHWH GLUW\FRPEXVWLRQ)RUH[DPSOHKDUGFRDOIRUJHKHDW


115/266

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

7KHPROHFXODUVWUXFWXUHRIVWHHOEUHDNVGRZQZKHQKHOGDWDYHU\KLJKWHPSHUDWXUH7KLVUHVXOWVLQLQKHUHQWO\ZHDNVWHHODQGWKLVZHDNQHVVFDQQRWEHFRPSOHWHO\HUDVHGE\VXEVHTXHQWKHDWWUHDWPHQWV7KHPROHFXODUERQGVZLWKLQWKHVWHHOEUHDNXSDVWKHJUDLQVWUXFWXUHHQODUJHV(QODUJHGJUDLQLQVWHHOORRNVVSDUNO\ZKHUHDIUHVKEUHDNLVH[SRVHG$VWRWKHWLPHDQGKHDWUHTXLUHGIRUVLJQLILFDQWVWUXFWXUDOGDPDJH,ZRXOGVXVSHFWWKDWDQRUGLQDU\FDUERQVWHHOEODGHKHDWHGWRDEULJKWRUDQJHFRORUIRUPRUHWKDQ

ILYHPLQXWHVZRXOGEHZHDNHQHG7KHUHIRUHKHDWRQO\WRWKHSURSHUFRORUDQGTXHQFKVRRQDIWHUWKLVFRORUKDVEHHQREWDLQHGHYHQO\RYHUWKHHQWLUHEODGH6HHKHDWLQJWHPSHUDWXUHVSS

+DUGQHVV7RXJKQHVVDQG:HDU5HVLVWDQFH

:KDWDFWXDOO\JLYHVWKHVWHHOLWVZRQGHUIXOTXDOLWLHVRIKDUGQHVVWRXJKQHVVDQGZHDUUHVLVWDQFH",WLVWKHLQWHUDFWLRQRIWKHLQJUHGLHQWVRIWKHVWHHOZLWKWKHKHDWWUHDWLQJSURFHVV%XWKRZGRWKHGLIIHUHQW

KHDWWUHDWPHQWSURFHVVHVDFWXDOO\DIIHFWWKHVWHHODQGZKDWJRHVRQLQVLGHWKHVWHHOGXULQJWKHVHWUHDWPHQWV


116/266

WKDWUHVXOWVLQWKHVHVSHFLDOTXDOLWLHV"2EYLRXVO\ZHPXVWXQGHUVWDQGWKLVPDJLFSURFHVVWRVRPHGHJUHHWRKDYHDQ\FRQWURORYHUWKHPHGLXPRIVWHHO7KHPRVWEDVLFDQGXQLYHUVDOWRROVWHHOLVDPL[WXUH

RILURQDQGDERXWSHUFHQWFDUERQZLWKDIHZRWKHUDOOR\VIRUVSHFLDOSURSHUWLHVSOXVVRPHLPSXULWLHV)RURXUSXUSRVHKHUHDEDVLFXQGHUVWDQGLQJRIWKHSURFHVVHVIRUWUHDWLQJFDUERQVWHHOZLOOVXIILFH$PRUHWKRURXJKWUHDWPHQWRIWKHVXEMHFWLQFOXGLQJDOOR\VWHHOVLVIRXQGLQWKHDSSHQGL[,URQZKHQVPHOWHUHGIURPRUHKDVDERXWSHUFHQWFDUERQ7KLVPDWHULDOZKHQFDVWLQWRPROGVLVFDOOHGFDVWLURQ:KHQWKLVPDWHULDOLVIXUWKHUUHILQHGWRDVSHFLILFDQDO\VLVDQGDFHUWDLQFDUERQFRQWHQWWKHQLWLVVRPHJUDGHRIWRROVWHHODQGZLOOUHVSRQG

LQFHUWDLQVSHFLILFZD\VWRYDULRXVSUHVFULEHGKHDWWUHDWPHQWV

$FWXDOO\FDUERQVWHHOLVDFRPELQDWLRQRILURQPROHFXOHVDQGPROHFXOHVRILURQFDUELGH7KHGHWHUPLQLQJIDFWRUIRUKDUGQHVVEULWWOHQHVVDQGZHDUUHVLVWDQFHLVWKHVWDWHRIWKHLURQFDUELGHKHUHDIWHUUHIHUUHGWRDVFDUELGH

12511317 Step by Step Knife Making by David Boyle

Documents

Transcript of 12511317 Step by Step Knife Making by David Boyle