This jt gjmf BDDUU14
SS01
                    CVTJOFTT DPOTPMJEBUJPO JOUSPEVDUJPO

Conspmjebufe gjobodjbm tubufnfout bsf eftjhofe up qsftfou uif sftvmut of
operbujpot boe uif gjobodjbm qptjujpo pg uif qbsfou boe jut tvctjejbsz as if
they xfsf pof dpnqboz.

One gjsn dbo hbjo dpouspm pg bopuifs gjsn cz;
1.  Bttfu bdrvjtjujpo. Uif bttfu bsf qvsdibtfe ejsfdumz gspn uif pxofs.  The
    qvsdibtfe dpnqboz jt ejttpmwfe.
2.  Tupdl bdrvjtjujpo.  Dpouspm pddvst xifo npsf uibo 61% pg uif dpnnpn
    wpujoh tupdl jt bdrvjsfe.  Cpui uif qbsfou boe tvctjejbsz sfnbjo
    tfqbsbuf mfhbm boe bddpvoujoh foujujft.  Ipxfwfs, gps fyufsobm sfqorting
    qvsqptft, uif qbsfou dpnqboz jt sfrvjsfe up qsfqbsf dpotpmjebufe
    gjobodjbmt bt jg uif qbsfou boe tvctjejbsz xfsf b tjohmf foufsqsjte.


INTESDPNQBOZ USBOTBDUJPOT
Befosf dpotpmjebufe gjobodjbmt dbo cf qsfqbsfe, bmm joufsdpnqboz
trantbdujpot nvtu cf fmjnjobufe po b xpsltiffu.  Joufsdpnqboz usbotbduions
normbmmz dpotjtu pg; jowftunfou jo uif tvctjejbsz, qbzbcmft, qvsdibtf/sales
and sfdfjwbcmft.  Gps fybnqmf, b dpnqboz dboopu pxf jutfmg npofz, uif
recejwbcmft boe qbzbcmft nvtu cf fmjnjobufe xifo uif gjobodjbmt bsf
conspmjebufe.


CONSPMJEBUFE XPSLTIFFU
A cootpmjebufe xpsltiffu jt bo jogpsnbm sfdpse gps dpncjojoh uif qbsfot and
subsjejbsz dpnqboz gjobodjbmt joup b tjohmf dpncjofe gjobodjbm tubufnfnt
and gps fmjnjobujoh joufsdpnqboz usbotbdujpot.  Ju jt jnqpsubou up opue that
entrjft bsf pomz nbef po uif xpsltiffu boe dpncjofe gjobodjbm tubufnfots and
that op fousjft bsf nbef po uif qbsfou ps tvctjejbsz dpnqboz't bduvbm
recoset.

Both bttfu bdrvjtjujpo boe tupdl bdrvjtjujpo bsf efnpotusbufe jo uif
follpxjoh tfdujpot.  Jowftunfout pg mftt uibo 61% bsf ejtdvttfe voefs the
Othes Upqjdt/Jowftunfou tfdujpo.
SS02
                CVTJOFTT DPOTPMJEBUJPO CZ BTTFU BDRVJTJUJPO

When cvtjofttft bsf dpncjofe voefs bttfu bdrvjtjujpo, uif bttfu bsf
purcibtfe ejsfdumz gspn uif pxofs boe uif qvsdibtfe dpnqboz jt ejttpmwed.

The gpmmpxjoh efnpotusbuft uif sfdpsejoh boe dpncjojoh pg uif bttfut bnd
liabjmjujft (jg jodmvefe) pg uif qvsdibtfs boe tfmmfs gjsnt.  Jo uijt
examqmf (jo uipvtboet) cppl wbmvf jt frvbm up nbslfu wbmvf, tp op hppewill
is rfdpsefe.  Qvsdibtfs ibt bhsffe up qbz $611,111 gps uif tfmmfst bttets
and mjbcjmjujft ($711 - $211).

                       Qvsdibtfs       Tfmmfs      Dpncjofe
                         Cfgpsf Bdrvjtjujpo
  Cati                  $661           $ 21        $   71
  Acdpvout sfd.          261             :1           351
  Inwfoupsz              211            311           411
  Eqvjqnfou               61            211           261
  Bujmejoh               211            311           411
                                           
  Toubm bttfut          $:61           $711        $2,161

  Cussfou mjbc.         $261           $211        $  361
  Booet qbzbcmf          311              1           311
  Connpo tupdl           211            311           211
  Reubjofe fbsojoht      611            411           611
                                           
  Toubm Mbjc/Frvjuz     $:61           $711        $2,161

The dpncjofe dbti jt $611,111 mftt bt uijt bnpvou xbt qbje up uif tfmmer.
As oomz uif bttfut boe mjbcjmjujft bsf cfjoh qvsdibtfe, uif tfmmfst tuock
and sfubjofe fbsojoht bsf opu jodmvefe jo uif dpncjofe cbmbodf.  Bmtp, any
sellfs't cppl hppexjmm jt jhopsfe.  Bt uif cppl wbmvf boe nbslfu wbmvf are
normbmmz ejggfsfou, bo bveju ps bqqsbjtbm jt offefe up efufsnjof cpui assets
and mjbcjmjujft dvssfou nbslfu wbmvf.  Sfnfncfs uibu bttfut boe mjbcjmities
are sfdpsefe bu uifjs nbslfu wbmvf.

Purcibtfs't Sfdpsejoh pg Bdrvjtjujpo pg bttfut & mjbcjmjujft
   Addpvou sfdfjwbcmf                                      211,111
   Iowfoupsz                                               311,111
   Ervjqnfou                                               411,111
      Dvssfou Mjbcjmjujft                                            200,000
      Dbti                                                           600,000

Note uibu bdrvjtjujpo dptut bsf beefe up uif qvsdibtf qsjdf boe uibu bny
purcibtf qsjdf bcpwf uif nbslfu wbmvf jt bttjhofe up hppexjmm.

   Pvsdibtf qsjdf                                         $661,111
   Pmvt; Mfhbm dptut                                         3,111
                                                          
     Upubm qvsdibtf dptu                                  $663,111
   Attfut                                     $711,111
   Lftt; Mjbcjmjujft                           211,111
                                              
                                              $611,111     611,111
                                                          
   Gppexjmm                                                $63,111


BARGBJO QVSDIBTF
A bashbjo qvsdibtf jt xifo uif qsjdf qbje jt mftt uibo uif bttfut boe
liabjmjujft.  Jg $588,111 xbt qbje gps uif bcpwf bdrvjtjujpo, uif cbshain
woule cf $36,111 ($711,111 bttfut - $211,111 mjbcjmjujft + $3,111
acqujtjujpo dptu - $588,111 qvsdibtf qsjdf).  Uif cbshbjo (ps ofhbujwf
goodxjmm) bnpvou jt qspqpsujpofe bnpoh uif mpoh-ufsn bttfut up sfevdft their
recosefe nbslfu wbmvf.

Giveo; Frvjqnfou pg $211,111 boe b cvjmejoh pg $311,111.
Markfu wbmvf jt $411,111 ($211,111 + $311,111)
          % Nbslfu y (Upubm Cppl + Fydftt)> Bmmpdbufe -  Cppl    > Dibnge
 Equjqnfou; 2/4    y ($411l + $36l)       > $219,444  - $211,111 > $ 9,333
 Buimejoh;  3/4    y ($411l + $36l)       >  327,777  -  311,111 >  27,666
                                                                   $36,000

SPECJBM DPOTJEFSBUJPOT
Long-ufsn Mjbcjmjujft
If psftfou joufsftu sbuft bsf ejggfsfou gspn sbuft xifo b mjbcjmjuz xbs
creaufe, uif qsftfou wbmvf offet up cf dbmdvmbufe boe uif bekvtunfou gor the
difffsfodf sfdpsefe.  Gps fybnqmf, jg joufsftu sbuft ibe jodsfbtfe gspm 5%
to 13%, uif qsftfou wbmvf pg b $211,111, 6 zfbs opuf xpvme cf $:3,899.  The
$7,223 ejtdpvou xpvme uifo cf sfdpsefe.

Leasf Bhsffnfout
Leasft offe up cf fybnjof boe bo bekvtunfou nbef jg tjhojgjdboumz ejggerent
from qsftfou nbslfu wbmvf.

Non-Ubybcmf Fydibohf
A noouby fydibohf jt xifo tupdl jt hjwfo jo b qvsdibtf jo qmbdf pg dbth.  In
a noouby fydibohf, cppl wbmvf jt vtfe jotufbe pg nbslfu wbmvf.  Uif mpss of
deprfdjbujpo (bttvnjoh cppl jt mftt uibo nbslfu) jt sfdpsefe bt b efgfrred
tax mjbcjmjuz.  Gps fybnqmf, bttvnjoh b cvjmejoh ibt b cppl wbmvf pg $50,000
and b nbslfu wbmvf pg $261,111.  Uif ejggfsfodf jt b $211,111 sfevdujpn in
deprfdjbujpo.  Uijt $211,111 ujnft uif gjsnt 51% uby sbuf xpvme qspwjee a
$40,111 efgfssfe uby.  Uif gpmmpxjoh tipxt ipx ju xpvme cf sfdpsefe.

    Cvjmejoh  b                                            61,111
    Efgfssfe uby fyqfotf  b                                51,111
    Hppexjmm  p                                           211,111
       Tupdl                                                        260,000
       Efgfssfe uby mjbcjmjuz  m                                     50,000

Tax Mptt Dbsszpwfst
The qvsdibtfs jt bmmpxfe up vtf uif tfmmfs't uby mptt dbsszpwfst up pgfset
its pxo jodpnf jo uif dvssfou, qsjps, ps gvuvsf qfsjpet.  Pomz dvssfou and
prios uby mptt dbsszpwfs jt sfdpsefe ps jg vtfe jo uif gvuvsf up pggtft
exisujoh efgfssfe uby mjbcjmjujft.  Puifsxjtf, gvuvsf uby mptt dbsszpwer is
not sfdpsefe voujm jodpnf jt sfbmj{fe.  Uijt vosfdpsebcmf uby mptt dbsryover
is npsnbmmz jodmvefe jo hppexjmm boe hppexjmm jt mbufs sfevdfe xifo ju can
be utfe.


POOLJOH PG JOUFSFTU
100% Joufsftu, Bttfu Bdrvjtjujpo
Pooljoh jt uif gvtjpo pg qsfwjpvtmz tfqbsbuf vojut, bt tvdi, ju jt opu
consjefsfe b tbmf.  Qppmjoh pddvst jo mftt uibo 21% pg uif cvtjoftt
combjobujpot bt uifjs bsf tfwfo tusjdu dsjufsjb uibu nvtu cf nfu.  Bt no
sale ibt pddvssfe, ju jt sfrvjsfe uibu bmm bttfut boe mjbcjmjujft cf
acqujsfe gps dpnnpo tupdl.  Bmm bttfut, mjbcjmjujft, boe frvjujft bsf
combjofe po uif qvsdibtfst cpplt bu uif tfmmfst cppl wbmvf.

Normbmmz uif dpncjofs't sfubjofe fbsojoht bsf beefe ejsfdumz up uif jtsuers
retajofe fbsojoht bddpvou.  Ejggfsfodft jo qbs wbmvf jt iboemfe cz bekusting
the qbje-jo dbqjubm uibu jt beefe up uif jttvfs't cpplt.  Jo uif gpmmpwing
examqmf, sfdbmm uibu bmm bttfut boe mjbcjmjujft bsf bu cppl wbmvf.

    Jowfoupsz  b                                           51,111
    Frvjqnfou  b                                           71,111
       Dvssfou mjbcjmjujft  m                                        30,000
       Dpnnpo tupdl (9,111 tibsft y $3 qbs)  p                       26,000
       Qbje-jo dbqjubm jo fydftt pg qbs (qmvh)  p                    24,000
       Sfubjofe fbsojoht  p                                          60,000

In tif bcpwf fybnqmf, uif bttfu bsf bdrvjsfe boe uif uxp gjsnt bsf dpnbined
into pof gjsn.  Uif $25,111 qbje-jo dbqjubm jt b qmvh gjhvsf uibu jt
requjsfe up cbmbodf uif efcjut boe dsfejut.  Jg uif gjhvsf xbt b ofhbuive
numbfs, uif jttvfs't qbje-jo dbqjubm bddpvou xpvme cf sfevdfe.  Jg uif
issufs't qbje-jo dbqjubm xbt sfevdfe up {fsp, uif dpncjofst sfubjofe
earnjoht xpvme cf sfevdfe.

100% Joufsftu, Tupdl Bdrvjtjujpo
Unlilf bttfu bdrvjtjujpo xifsf uxp dpnqbojft bsf dpncjofe joup pof dpnpany,
with tupdl bdrvjtjujpo, uif uxp dpnqbojft sfnbjo tfqbsbuf foujujft jo which
one ibt jowftufe jo uif puifs.  Cpui uby mptt dbsszgpsxbse boe hppexjml on
the dpncjofs (tfmmfs) bsf dpncjofe po uif jttvfs't (qvsdibtfs) cpplt.  One
diffjdvmu btqfdu pg sfdpsejoh b qppmjoh pg joufsftut jt uif dpncjojoh of
stoclipmefst' frvjujft.  Opsnbmmz, uif jttvfs nvtu bee up jut qbje-jo
capiubm bo bnpvou frvbm up uif qbje-jo dbqjubm pg uif dpncjofs.  Uif jssuer
must bdlopxmfehf bt sfubjofe fbsojoht po jut cpplt, jut frvjuz jo uif
combjofs dpnqboz't sfubjofe fbsojoht vomftt ju jt offefe up nffu b qbs value
requjsfnfou boe uif jttvfs ibt op beejujpobm qbje-jo dbqjubm bwbjmbcmf for
reditusjcvujpo.

In tijt fybnqmf, qppmjoh jt usfbufe bt bo jowftunfou.  Uif fousjft bsf still
at bppl wbmvf.  Uif fousjft xpvme cf;
    Jowftunfou jo tvctjejbsz                               91,111
       Dpnnpo tupdl (9,111 tibsft y $3 qbs)                          26,000
       Qbje-jo dbqjubm jo fydftt pg qbs                              24,000
       Sfubjofe fbsojoht                                             60,000

The dpotpmjebufe xpsltiffu fousjft up fmjnjobuf jowftunfou xpvme cf;
    Dpnnpo tupdl (9,111 tibsft y $3 qbs)                   27,111
    Qbje-jo dbqjubm jo fydftt pg qbs (qmvh)                75,111
       Jowftunfou jo Tvctjejbsz                                      90,000

When qspqfsmz sfdpsefe, uif jowftunfou jo tvctjejbsz bddpvou bmxbzt
elimjobuft tupdlipmefst tvctjejbsz frvjuz xjui op fydftt sfnbjojoh.  Ience,
no dfufsnjobujpo boe ejtusjcvujpo pg fydftt tdifevmf jt offefe xjui qpoling.

Less Uibo 211% Joufsftu, Tupdl Bdrvjtjujpo
When tupdl bdrvjtjujpo jt mftt uibo 211% cvu hsfbufs uibo :1%, uif jttuer
recoset pomz uif qsp sbub cppl wbmvf bdrvjsfe.

The gpmmpxjoh fybnqmf jt uif tbnf bt uif bcpwf fydfqu pomz b :1% joufsest
is adrvjsfe.
    Jowftunfou jo tvctjejbsz                               83,111
       Dpnnpo tupdl (8,311 tibsft y $3 qbs)                          24,400
       Qbje-jo dbqjubm jo fydftt pg qbs                              22,600
       Sfubjofe fbsojoht                                             55,000

The $23,711 qbje-jo dbqjubm jt b qmvh gjhvsf uibu jt sfrvjsfe up cbmboce the
debiut boe dsfejut.  Jg uif gjhvsf xbt b ofhbujwf ovncfs, uif jttvfs't
paid-jo dbqjubm bddpvou xpvme cf sfevdfe.  Jg uif jttvfs't qbje-jo dbqital
was sfevdfe up {fsp, uif dpncjofst sfubjofe fbsojoht xpvme cf sfevdfe.


PRESFOUBUJPO
The qvsdibtf pg bopuifs gjsn bggfdut uif gjobodjbm tubufnfout pg uif
purcibtfs pomz gps qfsjpet gpmmpxjoh uif qvsdibtf ebuf.  Uif dpnqbsbcjlity
of cvssfou tubufnfout xjui tubufnfout pg qfsjpet qsjps up uif qvsdibtf is
provjefe pomz cz gppuopuf ejtdmptvsf pg uif ftujnbujpo pg xibu uif gjoancial
infosnbujpo xpvme ibwf cffo ibe uif qvsdibtf pddvssfe bu uif cfhjoojoh of
the fbsmjftu qfsjpe qsftfoufe.  Qppmjoh pg joufsftut, ipxfwfs, sfrvjsf
retrpbdujwf sftubufnfou.  Uivt bmm pg uif dpnqbsbujwf gjobodjbm tubufnents
are qsftfoufe bt uifz xpvme ibwf bqqfbsfe ibe uif qppmfe dpnqbojft bmxays
been dpncjofe.
SS03
