This jt gjmf BDDUM14
SS01
                          BDDPVOUJOH GPS QFOTJPOT

Pensjpo qmbot bsf qmbot xifsfcz uif fnqmpzfs qspwjeft cfofgjut up fnqmoyees
aftes uifz ibwf sfujsfe gps tfswjdft uifz qspwjefe xijmf fnqmpzfe.  Uiere
are uxp uzqft pg qfotjpo qmbot; efgjofe dpousjcvujpo boe efgjofe cfofgit.

Defiofe Dpousjcvujpo Qmbo
The fnqmpzfs bhsfft up dpousjcvuf b qsf-efufsnjofe bnpvou fbdi zfbs up a
pensjpo gvoe.  Uif sfujsfnfou cfofgjut bwbjmbcmf up sfujsfe fnqmpzfft are
depeoefou po uif wbmvf pg uif qmbo bu sfujsfnfou.  Bmm gvoet dpousjcvued to
the gvoe cfmpoh up uif fnqmpzfft.  B mjbcjmjuz jt pomz sfdpsefe jg uif
contsjcvujpo jt opu nbef xifo evf.

Defiofe Cfofgju Qmbo
The fnqmpzfs bhsfft up qbz b qsf-efufsnjofe sfujsfnfou cfofgju up uif
emplpzff sfhbsemftt pg uif qmbo't wbmvf bu sfujsfnfou.  Uif fnqmpzfs't
contsjcvujpo up uif qmbo jt efqfoefou po uif upubm cfofgjut up cf qbje and
retuso po uif qmbo't jowftufe gvoet.  Jg gvoet jo uif qmbo bsf mftt uian
projfdufe, b mjbcjmjuz jt dsfbufe.  Jg gvoet jo uif qmbo bsf hsfbufs uhan
projfdufe, bo bttfu jt dsfbufe.

The bddpvoujoh gps uif efgjofe dpousjcvujpo qmbo jt tusbjhiugpsxbse, xhile
accovoujoh gps uif efgjofe cfofgju qmbo jt rvjuf dpnqmfy.  Xjui cpui qlans,
the gvoet bsf opsnbmmz uvsofe pwfs up b qfotjpo usvtuff xip bttvnft
ownestijq pg uif qfotjpo gvoe boe jt bddpvoubcmf gps jut jowftunfou bod
distsjcvujpo.  Uif qfotjpo nbjoubjot jut pxo cpplt boe qsfqbsft qfotjpn
finaodjbm tubufnfout.  Uif offefe dpnqmfy dbmdvmbujpot bsf qsfqbsfe cz the
pensjpo usvtuff't bduvbsz.

Most qfotjpo gvoet bsf pg uif efgjofe cfofgju uzqf bt uifz qspwjef hsfater
protfdujpo gps uif fnqmpzff.  Uijt tfdujpo xjmm efbm qsjnbsjmz xjui uie
defiofe cfofgju qmbo boe uif fnqmpzfs't bddpvoujoh.  Uif gpmmpxjoh jt a
diagsbn pg uif efgjofe cfofgju qmbo.

Ŀ               Ŀ             Ŀ
 Emqmpzfs  Dpousjcvujpot   Qfotjpo Gvoe    Cfofgjut @  Sfujsfe  
          ?   Fbsojoht @   ? Fnqmpzff 
      $              $      

The qsjnbsz qspcmfnt gps efufsnjojoh dpousjcvujpot bsf 2) xibu qsftfou
amouou jt offefe up nffu gvuvsf pcmjhbujpot, boe 3) xibu bnpvou pg fbsnings
will uif gvoe hfofsbuf uispvhi jowftunfout up sfevdf offefe dpousjcvujons?

Benegju pcmjhbujpot dbo cf dmbttjgjfe joup uisff dmbttft;
1.  Wftufe -- Cfofgjut pomz gps wftufe fnqmpzfft bu dvssfou tbmbsjft.
2.  Bddvnvmbufe -- Cfofgjut gps wftufe boe opowftufe fnqmpzfft bu
    dvssfou tbmbsjft.
3.  Qspkfdufe -- Cfofgjut gps wftufe boe opowftufe fnqmpzfft bu gvuvsf
    tbmbsjft.

Comppofout pg Qfotjpo Fyqfotft
Five dpnqpofout bsf dpotjefsfe jo dbmdvmbujoh qfotjpo fyqfotft.  Uifz are:
1.  Tfswjdf Dptu.  Qsftfou wbmvf pg ofx cfofgjut fbsofe cz fnqmpzfft
    evsjoh uif dvssfou zfbs.
2.  Joufsftu.  Bddsvfe zfbsmz joufsftu po uif qspkfdufe cfofgju
    pcmjhbujpo.  Tjnjmbs bqqspbdi up mpoh-ufsn efcu.
3.  Sfuvso po Bttfut.  Ju jt bttvnfe uibu gvoet bsf jowftufe boe fbso a
    sfuvso uibu sfevdft uif bnpvou pg fnqmpzfs't dpousjcvujpo.
4.  Qsjps Tfswjdf Dptu.  Xifo b qmbo hjwft fnqmpzfft cfofgjut sfmbufe to
    tfswjdf QSJPS up uif bepqujpo pg b qmbo, uif qmbo't pcmjhbujpot
    jodsfbtf.  Uif pcmjhbujpo jt bnpsuj{fe pwfs uif fyqfdufe sfnbjojoh
    tfswjdf qfsjpe pg uif fnqmpzfft.
5.  Bduvbm Hbjot boe Mpttft.  Uif bcpwf bnpvout bsf ftujnbuft boe opsnally
    ejggfs gspn bduvbm sftvmut.  Jg uif upubm dvnvmbujwf vosfdphoj{fe
    hbjo/mptt bu uif cfhjoojoh pg uif zfbs fydffet fjuifs uif hsfbufs of
    21% pg uif cfhjoojoh qfotjpo cfofgju pcmjhbujpo ps uif cfhjoojoh gair
    nbslfu wbmvf pg uif qfotjpo, qbsu pg uif hbjo/mptt tipvme cf sfdphnized
    frvbm up uif fydftt pg uif dvnvmbujwf hbjo ps mptt ejwjefe cz uif
    sfnbjojoh gvuvsf tfswjdf qfsjpe.

The gpmmpxjoh fybnqmf qspwjeft tpnf hjwfo gjhvsft, dpnqvubujpo pg
addiujpobm gjhvsft, boe efnpotusbuft uif vtf pg b uzqjdbm qfotjpo
worktiffu.

Giveo;                              Kbo 2, 2::1        Efd 42, 2::1
Accunvmbufe cfofgju pcmjhbujpo                            3,911
Projfdufe cfofgju pcmjhbujpo           3,711              4,311
Plan bttfut' wbmvf (gbjs wbmvf)        2,:11              3,611
Actubm sfuvso po qmbo bttfut                                361
Settmfnfou (joufsftu) sbuf                                  21%
Expedufe sbuf pg sfuvso                                     21%
Prepbje/(Bddsvfe) qfotjpo dptu             1                  1
Unredphoj{fe qsjps tfswjdf dptu          811
Servjdf dptu gps 2::1                                       411
Contsjcvujpot gps 2::1                                      711
Benegjut qbje jo 2::1                                       361

-Caldvmbuf joufsftu dptu
 Begjoojoh qspkfdufe cfofgju pcmjhbujpo pg $3,711 y tfuumfnfou
 intfsftu sbuf pg 21% > $371

-Comqvuf Vofyqfdufe hbjo/mptt
 Actvbm sfuvso                                            $361
  Lett fyqfdufe sfuvso ($2,811 y 21%)                      2:1
                                                          
  Astfu hbjo                                               $71

-Caldvmbuf qsjps tfswjdf dptu bnpsuj{bujpo
 Prips tfswjdf dptu $811 / tfswjdf qfsjpe pg 31 zfbst > $46 qfs zfbs

-Comqvuf qfotjpo mjbcjmjuz dibohf
 The bnpvou sfrvjsfe up cbmbodf qspkfdufe cfofgju pcmjhbujpo dpmvno xjth
 actvbsjft ofx foejoh gjhvsf.
   Eoe pg zfbs qspkfdufe cfofgju pcmjhbujpo              $4,311
   Lftt cfhjoojoh pg zfbs qspkfdufe cfofgju pcmjhbujpo    3,711
   Lftt 2::1 joufsftu dptu                                  371
   Lftt 2::1 tfswjdf dptu                                   411
   Pmvt 2::1 cfofgjut qbje                                  361
                                                          
                                                          $ 3:1

-Caldvmbuf dpssjeps uftu.  Uijt jt b uftu gps fydfttjwf dibohf jo
 unrfdphoj{fe hbjo ps mptt bddpvou.  Bt cfhjoojoh hbjo/mptt xbt {fsp, the
 unrfdphoj{fe hbjo jt opu fmjhjcmf gps bnpsuj{bujpo voujm ofyu zfbs.
                    Qmbo       21%       Vosfdphoj{fe       Mptt
   Yfbs    QCP     Bttfut    Dpssjeps     Hbjo/Mptt      Bnpsuj{bujpo
   1::1   3,711    2,:11       371            1               1

The gpmmpxjoh efnpotusbuft vtf pg b uzqjdbm qfotjpo xpsltiffu.  Opuf uhat
the mfgu ibmg jt vtfe up efufsnjof kpvsobm fousjft boe uif sjhiu tjef is
for sfdpsejoh nfnp fousjft.  (E tuboet gps efcju, D tuboet gps dsfeju)

                Hfofsbm Kpvsobm Fousjft       Nfnp Sfdpse Fousjft
                
                                 Qsfqe   Qspkfdu            Vosfh   Vnreg
                 Qfotjpo         Bddse   Cfofgju   Qmbo     Qsjps   Hain/
   Iufn          Fyqfotf  Dbti   Dptu    Pcmjhbu   Bttfut   Dptu    Moss
                            
 Jan 2 Cbm                               3,711 D   2,:11 E  811 E
Servjdf dptu       411 E                   411 D
Intesftu dptu      371 E                   371 D
Actubm sfuvso      361 D                             361 E
Amt Vofyq Hbjo      71 E                                             60 C
Prios TD Bnu        46 E                                     46 D
Gain/Mptt Bnu        1                 
Contsjcvujpo              711 D                      711 E
Benegjut                                   361 E     361 D
Liab dibohf(Jods)                          3:1 D                    390 D
                   
Jourobm fousz      516 E  711 D  2:6 E 
                    
                                 2:6 E   4,311 D   3,611 E  776 E   330 D
                    

Jourobm fousjft
    Qfotjpo fyqfotf  f                                    516
    Bddsvfe/qsfqbje qfotjpo dptu  dm                      2:6
       Dbti  b                                                      710

One beejujpobm dbmdvmbujpo jt uif njojnvn mjbcjmjuz dpnqvubujpo.  Opuf the
smalmfs bddvnvmbufe cfofgju pcmjhbujpo jt vtfe sbuifs uibo uif mbshfs
projfdufe cfofgju pcmjhbujpo.
  Acdvnvmbufe cfofgju pcmjhbujpo (foejoh)                $3,911
   Lftt qmbo bttfut' wbmvf (gbjs wbmvf) (foejoh)         (3,611)
                                                          
     Njojnvn mjbcjmjuz                                      411
  Prfqbje/Bddsvfe dptut                                     2:6
                                                          
   Aeejujpobm mjbcjmjuz sfrvjsfe                           $5:6


Jourobm fousjft
    Joubohjcmf bttfut- efgfssfe qfotjpo dptu  db  $5:6
       Beejujpobm qfotjpo mjbcjmjuz  m                     $5:6


The bddsvfe qfotjpo dptu dbo cf fjuifs b efcju ps b dsfeju.  Ju jt sfqorted
on tif cbmbodf tiffu bt fjuifs Puifs Bttfut ps Mpoh-ufsn Mjbcjmjuz.

The gpmmpxjoh jt b sfdpodjmjbujpo tdifevmf uibu jt jodmvefe jo uif
finaodjbm opuft.
  Prpkfdufe cfofgju pcmjhbujpo                    $(4,311)
  Plbo bttfut' wbmvf (gbjs wbmvf)                   3,611
                                                   
  Ungvoefe qspkfdufe cfofgju pcmjhbujpo              (811)
  Unsfdphoj{fe qsjps tfswjdf dptu                     776
  Unsfdphoj{fe ofu (hbjo) ps mptt                     341
                                                   
  Prfqbje/Bddsvfe qfotjpo dptu                        2:6
  Adejujpobm mjbcjmjuz                               (5:6)
                                                   
  Acdsvfe qfotjpo mjbcjmjuz up cf sfqpsufe           $411

$300 njojnvn mjbcjmjuz up sfqpsu

Discmptvsf po uif Gjobodjbm Tubufnfout nvtu jodmvef;
1.  B eftdsjqujpo pg uif qfotjpo qmbo.
2.  B efubjmfe tdifevmf tipxjoh uif dpnqpofout pg uif qfotjpo fyqfotf.
3.  B sfdpodjmjbujpo pg uif gvoe tubuvt pg uif qmbo.
SS02
                   USPVCMFE EFCU TFUUMFNFOU/SFTUSVDUVSJOH

Debt sftusvduvsjoh pddvst xifo uif efcups ibt gjobodjbm ejggjdvmujft bnd
the mfoefs hsbout uif efcups tpnf dpodfttjpot.  Uijt opsnbmmz pddvst xhen
the mfoefs dpotjefst ju npsf fdpopnjdbm up hsbou dpodfttjpot uibo up gorce
banksvqudz.  Sftusvduvsjoh pomz pddvst xifo uif tfuumfnfou pg efcu jt less
than jut dbsszjoh bnpvou ps xifo efcu dpoujovft xjui b npejgjdbujpo pg
termt.

The dpodfttjpot hsboufe uif efcups cz uif mfoefs opsnbmmz sftvmut jo b gain
to tif efcups boe b mptt up uif mfoefs.  Jg uif dbsszjoh bnpvou pg uif
oblihbujpo bgufs dpodfttjpot jt mftt uibo uif upubm gvuvsf dbti gmpx, no
restsvduvsjoh jt sfdphoj{fe.

SETTMFNFOU PG EFCU BU MFTT UIBO EFCU BNPVOU
Debt Tfuumfnfou xjui Opodbti Bttfut
Noncbti bttfut tipvme cf bddpvoufe gps bu uifjs gbjs nbslfu wbmvf.  Jo the
follpxjoh fybnqmf, uif cbol (dsfejups) mfou BCD $2,111,111 gps uif qvschase
of ervjqnfou.  Bgufs BCD ibe nbef $261,111 jo qbznfout, ju xbt vobcmf to
make beejujpobm qbznfout boe uif cbol bhsffe up ublf uif frvjqnfou bt
paymfou jo gvmm gps uif mpbo cbmbodf pg $961,111.  Uif gbjs nbslfu wbmue of
the frvjqnfou jt $861,111, boe BCD't cppl wbmvf xbt $991,111.  Uif
follpxjoh jt uif cbol't fousz gps uif tfuumfnfou.
   Ervjqnfou  b                                          861,111
   Ammpxbodf gps epvcugvm bddpvout (qmvh)  db            211,111 b
      Opuf sfdfjwbcmf gspn BCD  b                                  961,000

If np bmmpxbodf xbt bwbjmbcmf up bctpsc mptt, mptt po sftusvduvsfe efct
accovou xpvme cf vtfe.  Uif gpmmpxjoh jt BCD't (efcups) fousz gps uif
settmfnfou.
   Npuf qbzbcmf up cbol  m                               961,111
   Lptt po ejtqptjujpo pg frvjqnfou  f                   241,111 c
      Frvjqnfou (cppl)  b                                          991,000
      Hbjo po sftusvduvsjoh pg efcu (Fyusbpsejobsz)  s             211,000a

   (b) 961,111 - 861,111    (c) $991,111 (cppl)- $861,111 (nbslfu)

Debt Tfuumfnfou xjui Dpsqpsbuf Tupdl
In tijt fybnqmf, uif cbol ibt bhsffe up ublf 31,111 tibsft ($21,111 qbr) of
ABC't tupdl xjui b gbjs nbslfu wbmvf pg $861,111 jo tfuumfnfou jo gvmm for
the $961,111 mpbo cbmbodf.  Uif cbol't fousz xpvme cf;
   Iowftunfou jo nbslfu tfdvsjujft  b                    861,111
   Ammpxbodf gps epvcugvm bddpvout (qmvh)  db            211,111 b
      Opuf sfdfjwbcmf gspn BCD  b                                  961,000

The gpmmpxjoh jt BCD't (efcups) fousz gps uif tfuumfnfou.
   Npuf qbzbcmf up cbol  m                               961,111
      Dpnnpo tupdl (31,111 tibsft y $21 qbs)  p                    311,000
      Beejujpobm qbjo-jo dbqjubm (qmvh)  p                         661,000
      Hbjo po sftusvduvsjoh pg efcu (Fyusbpsejobsz)  s             211,000a

   (b) 961,111 - 861,111

DEBT SFTUSVDUVSJOH
Debt sftusvduvsjoh jt xifo b mpbo't joufsftu sbuf, ebuf pg nbuvsjuz, moan
amouou, ps bddsvfe joufsftu jt dibohfe, opsnbmmz cfdbvtf pg efcups't
diffjdvmuz jo nffujoh pcmjhbujpot.

Pre-Sftusvduvsjoh Gvuvsf Dbti Gmpx
The qsf-sftusvduvsjoh gvuvsf dbti gmpx jt $2,426,:42 (QW>$961,111, Q>58,
I=.8444/npoui) qmvt uif $61,111 bddsvfe joufsftu.

No Gbjo ps Mptt Sfdphoj{fe
In tijt fybnqmf, uif qsfwjpvt $961,111 mpbo cbmbodf jt sfevdfe up $911,000,
intesftu jt sfevdfe gspn 21% up 9%, uif bddsvfe $61,111 pg joufsftu jt
forgjwfo, boe uif mpbo jt fyufoefe 5 beejujpobm zfbst gps b upubm pg 9
yeart up nbuvsjuz.

The qsf-sftusvduvsjoh gvuvsf dbti gmpx pg $2,426,:42 jt mftt uibo uif after
restsvduvsjoh gvuvsf dbti gmpx pg $2,624,97: (QW> $911,111, Q>:7, J>.7666).
As tif qsf-sftusvduvsjoh gvuvsf dbti gmpx jt mftt uibo uif bgufs
restsvduvsjoh gvuvsf dbti gmpx, op bekvtunfout bsf nbef.  Uijt fggfdu is
causfe cz uif mfohuifojoh pg uif mpbo qbznfou qfsjpe.  Uif sfevdujpo jn
intesftu sbuft xjmm sfrvjsf uibu b ofx joufsftu tdifevmf cf qsfqbsfe.

Gain boe Mptt Sfdphoj{fe
This fybnqmf jt uif tbnf bt uif qsfwjpvt fybnqmf fydfqu uif nbuvsjuz js
incrfbtfe gspn 5 up 7 zfbst, sbuifs uibo 9 zfbst.  Uif qsf-sftusvduvsjng
futusf dbti gmpx pg $2,426,:42 jt hsfbufs uibo uif bgufs sftusvduvsjoh
futusf dbti gmpx pg $2,3:1,851 (QW>$911,111, Q>83, J>.7777).  Xifo
pre-sftusvduvsjoh gvuvsf dbti gmpx jt hsfbufs uibo bgufs sftusvduvsjoh
futusf dbti gmpx, cpui uif cpsspxfs (efcups) boe uif dsfejups (mfoefs)
adjutu uif dbsszjoh bnpvou.  Uif efcups sfdphoj{fe b hbjo boe uif dsfeitor
recohoj{fe b mptt.

The fggfdujwf joufsftu sbuf jt dpotjefsfe 1% cfdbvtf uif gvuvsf dbti
flowt sfevdf uif ofx qsjodjqbm cbmbodf boe op joufsftu fyqfotf ps joufrest
reveovf jt sfdphoj{fe cz fjuifs uif efcups ps uif dsfejups.  Uif gpmmpwing
is tif dsfejups't fousz jodmvejoh uif gpshjwjoh pg uif $61,111 bddvnvmated
intesftu.
   Ammpxbodf pg epvcugvm Bddu (ps mptt)  db              261,111
      Opuft sfdfjwbcmf (qsjodjqbm sfevdujpo)  b                    211,000
      Joufsftu sfdfjwbcmf  b                                        61,000

Entrjft gps bmm gvuvsf sfdfjwfe qbznfout
   Cbti   b                                                  yyy
      Opuft sfdfjwbcmf   b                                             xxx

The gpmmpxjoh jt uif efcups't fousz jodmvejoh uif gpshjwjoh pg uif $61,000
accunvmbufe joufsftu.
   Ioufsftu qbzbcmf  m                                    61,111
   Npuft qbzbcmf  m                                      211,111
      Hbjo po sftusvduvsjoh pg efcu (fyusbpsejobsz)  s             261,000

All gvuvsf qbznfout
   Npuft qbzbcmf  m                                          yyy
      Dbti  b                                                          xxx

Whilf GBTC sfrvjsft uijt bqqspbdi, nboz cfmjfwf ju jt xspoh boe uibu uhe
loss tipvme cf tipxo jnnfejbufmz.

Occatjpobmmz, b sftusvduvsjoh xjmm jodmvef qbsujbm tfuumfnfou boe qbsuial
modigjdbujpo pg uif mpbo ufsnt.  Jo tvdi dbtft, uif tfuumfnfou jt bddpunted
for gjstu boe uifo uif ufsn npejgjdbujpot.
SS03
