You are on page 1of 81

The PDF format of this book was created and distributed by the:

This PDF file may 'NOT' be redistributed on any website other than that of
the Varangian Kindreds.

This PDF file may 'NOT' be sold on any form of media (Floppy, CD, DVD,
etc...), except by the Varangian Kindreds.

If you purchased some form of media from anyone other than the Varangian
Kindreds and you find one of our PDFs included, contact us immediately so
that legal actions can be taken against the seller.

Enjoy the book.


0<7+6$1'0<7+0$.(562/'7$/(6
$1'683(567,7,216,17(535(7('%<
&203$5$7,9(0<7+2/2*<
%<-2+1),6.(

/DP\WKRORJLHFHWWHVFLHQFHWRXWHQRXYHOOHTXLQRXVIDLW
VXLYUHOHVFUR\DQFHVGHQRVSHUHVGHSXLVOHEHUFHDXGXPRQGH
MXVTX¶DX[VXSHUVWLWLRQVGHQRVFDPSDJQHV²('021'6&+(5(5

720<'($5)5,(1':,//,$0'($1+2:(//6,15(0(0%5$1&(2)
3/($6$17$87801(9(1,1*663(17$021*:(5(:2/9(6$1'752//6$1'1,;,(6,
GHGLFDWH7+,65(&25'2)285$'9(1785(6

35()$&(
,1SXEOLVKLQJWKLVVRPHZKDWUDPEOLQJDQGXQV\VWHPDWLFVHULHVRISDSHUVLQZKLFK,KDYHHQGHDYRXUHGWRWRXFKEULHIO\
XSRQDJUHDWPDQ\RIWKHPRVWLPSRUWDQWSRLQWVLQWKHVWXG\RIP\WKRORJ\,WKLQNLWULJKWWRREVHUYHWKDWLQRUGHUWR
DYRLGFRQIXVLQJWKHUHDGHUZLWKLQWULFDWHGLVFXVVLRQV,KDYHVRPHWLPHVFXWWKHPDWWHUVKRUWH[SUHVVLQJP\VHOIZLWK
GRJPDWLFGHILQLWHQHVVZKHUHDVFHSWLFDOYDJXHQHVVPLJKWSHUKDSVKDYHVHHPHGPRUHEHFRPLQJ,QWUHDWLQJRISRSXODU
OHJHQGVDQGVXSHUVWLWLRQVWKHSDWKVRILQTXLU\DUHFLUFXLWRXVHQRXJKDQGVHOGRPFDQZHUHDFKDVDWLVIDFWRU\FRQFOXVLRQ
XQWLOZHKDYHWUDYHOOHGDOOWKHZD\DURXQG5RELQ+RRG¶VEDUQDQGEDFNDJDLQ,DPVXUHWKDWWKHUHDGHUZRXOGQRWKDYH
WKDQNHGPHIRUREVWUXFWLQJWKHVHFURRNHGODQHVZLWKWKHWKRUQVDQGEUDPEOHVRISKLORORJLFDODQGDQWLTXDULDQGLVFXVVLRQ
WRVXFKDQH[WHQWDVSHUKDSVWRPDNHKLPGHVSDLURIHYHUUHDFKLQJWKHKLJKURDG,KDYHQRWDWWHPSWHGWRUHYLHZ
RWKHUZLVHWKDQLQFLGHQWDOO\WKHZRUNVRI*ULPP0XOOHU.XKQ%UHDO'DVHQWDQG7\ORUQRUFDQ,SUHWHQGWRKDYH
DGGHGDQ\WKLQJRIFRQVHTXHQFHVDYHQRZDQGWKHQVRPHELWRIH[SODQDWRU\FRPPHQWWRWKHUHVXOWVREWDLQHGE\WKH
ODERXURIWKHVHVFKRODUVEXWLWKDVUDWKHUEHHQP\DLPWRSUHVHQWWKHVHUHVXOWVLQVXFKDZD\DVWRDZDNHQJHQHUDO
LQWHUHVWLQWKHP$QGDFFRUGLQJO\LQGHDOLQJZLWKDVXEMHFWZKLFKGHSHQGVXSRQSKLORORJ\DOPRVWDVPXFKDV
DVWURQRP\GHSHQGVXSRQPDWKHPDWLFV,KDYHRPLWWHGSKLORORJLFDOFRQVLGHUDWLRQVZKHUHYHULWKDVEHHQSRVVLEOHWRGR
VR1HYHUWKHOHVV,EHOLHYHWKDWQRWKLQJKDVEHHQDGYDQFHGDVHVWDEOLVKHGZKLFKLVQRWQRZJHQHUDOO\DGPLWWHGE\
VFKRODUVDQGWKDWQRWKLQJKDVEHHQDGYDQFHGDVSUREDEOHIRUZKLFKGXHHYLGHQFHFDQQRWEHSURGXFHG<HWDPRQJPDQ\
SRLQWVZKLFKDUHSURYHGDQGPDQ\RWKHUVZKLFKDUHSUREDEOHWKHUHPXVWDOZD\VUHPDLQPDQ\RWKHUIDFWVRIZKLFKZH
FDQQRWIHHOVXUHWKDWRXURZQH[SODQDWLRQLVWKHWUXHRQHDQGWKHVWXGHQWZKRHQGHDYRXUVWRIDWKRPWKHSULPLWLYH
WKRXJKWVRIPDQNLQGDVHQVKULQHGLQP\WKRORJ\ZLOOGRZHOOWREHDULQPLQGWKHPRGHVWZRUGVRI-DFRE*ULPP
KLPVHOIWKHJUHDWHVWVFKRODUDQGWKLQNHUZKRKDVHYHUGHDOWZLWKWKLVFODVVRIVXEMHFWV³,VKDOOLQGHHGLQWHUSUHWDOOWKDW,
FDQEXW,FDQQRWLQWHUSUHWDOOWKDW,VKRXOGOLNH´
3(7(56+$06HSWHPEHU
&217(176

,7+(25,*,162))2/./25(

,,7+('(6&(172)),5(

,,,:(5(:2/9(6$1'6:$10$,'(16

,9/,*+7$1''$5.1(66

90<7+62)7+(%$5%$5,&:25/'

9,-89(1786081',

9,,7+(35,0(9$/*+267:25/'

127(

0<7+6$1'0<7+0$.(56

,7+(25,*,162))2/./25(
)(:PHGLDHYDOKHURHVDUHVRZLGHO\NQRZQDV:LOOLDP7HOO+LVH[SORLWVKDYHEHHQFHOHEUDWHGE\RQHRIWKHJUHDWHVW
SRHWVDQGRQHRIWKHPRVWSRSXODUPXVLFLDQVRIPRGHUQWLPHV7KH\DUHGRXEWOHVVIDPLOLDUWRPDQ\ZKRKDYHQHYHU
KHDUGRI6WDXIIDFKHURU:LQNHOULHGZKRDUHTXLWHLJQRUDQWRIWKHSURZHVVRI5RODQGDQGWRZKRP$UWKXUDQG
/DQFHORWQD\HYHQ&KDUOHPDJQHDUHEXWHPSW\QDPHV
1HYHUWKHOHVVLQVSLWHRIKLVYDVWUHSXWDWLRQLWLVYHU\OLNHO\WKDWQRVXFKSHUVRQDV:LOOLDP7HOOHYHUH[LVWHGDQGLWLV
FHUWDLQWKDWWKHVWRU\RIKLVVKRRWLQJWKHDSSOHIURPKLVVRQ¶VKHDGKDVQRKLVWRULFDOYDOXHZKDWHYHU,QVSLWHRIWKH
ZUDWKRIXQOHDUQHGEXWSDWULRWLF6ZLVVHVSHFLDOO\RIWKRVHRIWKHFLFHURQHFODVVWKLVFRQFOXVLRQLVIRUFHGXSRQXVDV
VRRQDVZHEHJLQWRVWXG\WKHOHJHQGLQDFFRUGDQFHZLWKWKHFDQRQVRIPRGHUQKLVWRULFDOFULWLFLVP,WLVXVHOHVVWRSRLQW
WR7HOO¶VOLPHWUHHVWDQGLQJWRGD\LQWKHFHQWUHRIWKHPDUNHWSODFHDW$OWGRUIRUWRTXRWHIRURXUFRQIXVLRQKLV
FURVVERZSUHVHUYHGLQWKHDUVHQDODW=XULFKDVXQLPSHDFKDEOHZLWQHVVHVWRWKHWUXWKRIWKHVWRU\,WLVLQYDLQWKDWZH
DUHWROG³7KHEULFNVDUHDOLYHWRWKLVGD\WRWHVWLI\WRLWWKHUHIRUHGHQ\LWQRW´7KHVHSURRIVDUHQRWPRUHYDOLGWKDQWKH
KDQGNHUFKLHIRI6W9HURQLFDRUWKHIUDJPHQWVRIWKHWUXHFURVV)RULIUHOLFVDUHWREHUHFHLYHGDVHYLGHQFHZHPXVW
QHHGVDGPLWWKHWUXWKRIHYHU\PLUDFOHQDUUDWHGE\WKH%ROODQGLVWV
7KHHDUOLHVWZRUNZKLFKPDNHVDQ\DOOXVLRQWRWKHDGYHQWXUHVRI:LOOLDP7HOOLVWKHFKURQLFOHRIWKH\RXQJHU0HOFKLRU
5XVVZULWWHQLQ$VWKHVKRRWLQJRIWKHDSSOHZDVVXSSRVHGWRKDYHWDNHQSODFHLQWKLVOHDYHVDQLQWHUYDORI
RQHKXQGUHGDQGHLJKW\VL[\HDUVGXULQJZKLFKQHLWKHUD7HOOQRUD:LOOLDPQRUWKHDSSOHQRUWKHFUXHOW\RI*HVVOHU
UHFHLYHGDQ\PHQWLRQ,WPD\DOVREHREVHUYHGSDUHQWKHWLFDOO\WKDWWKHFKDUWHUVRI.XVVHQDFKZKHQH[DPLQHGVKRZ
WKDWQRPDQE\WKHQDPHRI*HVVOHUHYHUUXOHGWKHUH7KHFKURQLFOHUVRIWKHILIWHHQWKFHQWXU\)DEHUDQG+DPPHUOLQ
ZKRPLQXWHO\GHVFULEHWKHW\UDQQLFDODFWVE\ZKLFKWKH'XNHRI$XVWULDJRDGHGWKH6ZLVVWRUHEHOOLRQGRQRWRQFH
PHQWLRQ7HOO¶VQDPHRUEHWUD\WKHVOLJKWHVWDFTXDLQWDQFHZLWKKLVH[SORLWVRUZLWKKLVH[LVWHQFH,QWKH=XULFKFKURQLFOH
RIKHLVQRWDOOXGHGWR%XWZHKDYHVWLOOEHWWHUQHJDWLYHHYLGHQFH-RKQRI:LQWHUWKXURQHRIWKHEHVWFKURQLFOHUV
RIWKH0LGGOH$JHVZDVOLYLQJDWWKHWLPHRIWKHEDWWOHRI0RUJDUWHQ  DWZKLFKKLVIDWKHUZDVSUHVHQW+HWHOOVXV
KRZRQWKHHYHQLQJRIWKDWGUHDGIXOGD\KHVDZ'XNH/HRSROGKLPVHOILQKLVIOLJKWIURPWKHIDWDOILHOGKDOIGHDGZLWK
IHDU+HGHVFULEHVZLWKWKHORYLQJPLQXWHQHVVRIDFRQWHPSRUDU\DOOWKHLQFLGHQWVRIWKH6ZLVVUHYROXWLRQEXWQRZKHUH
GRHVKHVD\DZRUGDERXW:LOOLDP7HOO7KLVLVVXIILFLHQWO\FRQFOXVLYH7KHVHPHGLDHYDOFKURQLFOHUVZKRQHYHUIDLOHG
WRJRRXWRIWKHLUZD\DIWHUDELWRIWKHHSLJUDPPDWLFDQGPDUYHOORXVZKRWKRXJKWIDUPRUHRIDSRLQWHGVWRU\WKDQRI
KLVWRULFDOFUHGLELOLW\ZRXOGQHYHUKDYHNHSWVLOHQWDERXWWKHDGYHQWXUHVRI7HOOLIWKH\KDGNQRZQDQ\WKLQJDERXW
WKHP
$IWHUWKLVLWLVQRWVXUSULVLQJWRILQGWKDWQRWZRDXWKRUVZKRGHVFULEHWKHGHHGVRI:LOOLDP7HOODJUHHLQWKHGHWDLOVRI
WRSRJUDSK\DQGFKURQRORJ\6XFKGLVFUHSDQFLHVQHYHUIDLOWRFRQIURQWXVZKHQZHOHDYHWKHVROLGJURXQGRIKLVWRU\DQG
EHJLQWRGHDOZLWKIORDWLQJOHJHQGV<HWLIWKHVWRU\EHQRWKLVWRULFDOZKDWFRXOGKDYHEHHQLWVRULJLQ"7RDQVZHUWKLV
TXHVWLRQZHPXVWFRQVLGHUDEO\H[SDQGWKHGLVFXVVLRQ
7KHILUVWDXWKRURIDQ\FHOHEULW\ZKRGRXEWHGWKHVWRU\RI:LOOLDP7HOOZDV*XLOOLPDQQLQKLVZRUNRQ6ZLVV
$QWLTXLWLHVSXEOLVKHGLQ+HFDOOVWKHVWRU\DSXUHIDEOHEXWQHYHUWKHOHVVHDWLQJKLVZRUGVFRQFOXGHVE\
SURFODLPLQJKLVEHOLHILQLWEHFDXVHWKHWDOHLVVRSRSXODU8QGRXEWHGO\KHDFWHGDZLVHSDUWIRULQDVZHDUH
WROG8ULHO)UHXGHQEHUJHUZDVFRQGHPQHGE\WKHFDQWRQRI8ULWREHEXUQWDOLYHIRUSXEOLVKLQJKLVRSLQLRQWKDWWKH
OHJHQGRI7HOOKDGD'DQLVKRULJLQ>@
>@6HH'HOHSLHUUH+LVWRULFDO'LIILFXOWLHVS
7KHEROGKHUHWLFZDVVXEVWDQWLDOO\ULJKWKRZHYHUOLNHVRPDQ\RWKHUKHUHWLFVHDUOLHUDQGODWHU7KH'DQLVKDFFRXQWRI
7HOOLVJLYHQDVIROORZVE\6D[R*UDPPDWLFXV
³$FHUWDLQ3DOQDWRNLIRUVRPHWLPHDPRQJ.LQJ+DUROG¶VERG\JXDUGKDGPDGHKLVEUDYHU\RGLRXVWRYHU\PDQ\RI
KLVIHOORZVROGLHUVE\WKH]HDOZLWKZKLFKKHVXUSDVVHGWKHPLQWKHGLVFKDUJHRIKLVGXW\7KLVPDQRQFHZKHQWDONLQJ
WLSVLO\RYHUKLVFXSVKDGERDVWHGWKDWKHZDVVRVNLOOHGDQDUFKHUWKDWKHFRXOGKLWWKHVPDOOHVWDSSOHSODFHGDORQJZD\
RIIRQDZDQGDWWKHILUVWVKRWZKLFKWDONFDXJKWXSDWILUVWE\WKHHDUVRIEDFNELWHUVVRRQFDPHWRWKHKHDULQJRIWKH
NLQJ1RZPDUNKRZWKHZLFNHGQHVVRIWKHNLQJWXUQHGWKHFRQILGHQFHRIWKHVLUHWRWKHSHULORIWKHVRQE\
FRPPDQGLQJWKDWWKLVGHDUHVWSOHGJHRIKLVOLIHVKRXOGEHSODFHGLQVWHDGRIWKHZDQGZLWKDWKUHDWWKDWXQOHVVWKH
DXWKRURIWKLVSURPLVHFRXOGVWULNHRIIWKHDSSOHDWWKHILUVWIOLJKWRIWKHDUURZKHVKRXOGSD\WKHSHQDOW\RIKLVHPSW\
ERDVWLQJE\WKHORVVRIKLVKHDG7KHNLQJ¶VFRPPDQGIRUFHGWKHVROGLHUWRSHUIRUPPRUHWKDQKHKDGSURPLVHGDQG
ZKDWKHKDGVDLGUHSRUWHGE\WKHWRQJXHVRIVODQGHUHUVERXQGKLPWRDFFRPSOLVKZKDWKHKDG127VDLG<HWGLGQRW
KLVVWHUOLQJFRXUDJHWKRXJKFDXJKWLQWKHVQDUHRIVODQGHUVXIIHUKLPWROD\DVLGHKLVILUPQHVVRIKHDUWQD\KH
DFFHSWHGWKHWULDOWKHPRUHUHDGLO\EHFDXVHLWZDVKDUG6R3DOQDWRNLZDUQHGWKHER\XUJHQWO\ZKHQKHWRRNKLVVWDQGWR
DZDLWWKHFRPLQJRIWKHKXUWOLQJDUURZZLWKFDOPHDUVDQGXQEHQWKHDGOHVWE\DVOLJKWWXUQRIKLVERG\KHVKRXOG
GHIHDWWKHSUDFWLVHGVNLOORIWKHERZPDQDQGWDNLQJIXUWKHUFRXQVHOWRSUHYHQWKLVIHDUKHWXUQHGDZD\KLVIDFHOHVWKH
VKRXOGEHVFDUHGDWWKHVLJKWRIWKHZHDSRQ7KHQWDNLQJWKUHHDUURZVIURPWKHTXLYHUKHVWUXFNWKHPDUNJLYHQKLP
ZLWKWKHILUVWKHILWWHGWRWKHVWULQJ%XW3DOQDWRNLZKHQDVNHGE\WKHNLQJZK\KHKDGWDNHQPRUHDUURZVIURPWKH
TXLYHUZKHQLWKDGEHHQVHWWOHGWKDWKHVKRXOGRQO\WU\WKHIRUWXQHRIWKHERZ21&(PDGHDQVZHUµ7KDW,PLJKW
DYHQJHRQWKHHWKHVZHUYLQJRIWKHILUVWE\WKHSRLQWVRIWKHUHVWOHVWSHUFKDQFHP\LQQRFHQFHPLJKWKDYHEHHQ
SXQLVKHGZKLOH\RXUYLROHQFHHVFDSHGVFRWIUHH¶³>@
>@6D[R*UDPPDWLFXV%N;SHG)UDQNI
7KLVUXWKOHVVNLQJLVQRQHRWKHUWKDQWKHIDPRXV+DUROG%OXHWRRWKDQGWKHRFFXUUHQFHLVSODFHGE\6D[RLQWKH\HDU
%XWWKHVWRU\DSSHDUVQRWRQO\LQ'HQPDUNEXWLQ)LQJODQGLQ1RUZD\LQ)LQODQGDQG5XVVLDDQGLQ3HUVLDDQG
WKHUHLVVRPHUHDVRQIRUVXSSRVLQJWKDWLWZDVNQRZQLQ,QGLD,Q1RUZD\ZHKDYHWKHDGYHQWXUHVRI3DQVDWKH6SOD\
IRRWHGDQGRI+HPLQJUDYDVVDORI+DUROG+DUGUDGDZKRLQYDGHG(QJODQGLQ,Q,FHODQGWKHUHLVWKHNLQGUHG
OHJHQGRI(JLOEURWKHURI:D\ODQG6PLWKWKH1RUVH9XOFDQ,Q(QJODQGWKHUHLVWKHEDOODGRI:LOOLDPRI&ORXGHVOHH
ZKLFKVXSSOLHG6FRWWZLWKPDQ\GHWDLOVRIWKHDUFKHU\VFHQHLQ³,YDQKRH´
+HUHVD\VWKHGDXQWOHVVERZPDQ
³,KDYHDVRQQHVHYHQ\HDUVROG
+HHLVWRPHIXOOGHHUH
,ZLOOW\HKLPWRDVWDNH²
$OOVKDOOVHHKLPWKDWEHHKHUH²
$QGOD\DQDSSOHXSRQKLVKHDG
$QGJRHVL[SDFHVKLPIURH
$QG,P\VHOIZLWKDEURDGDUURZH
6KDOOFOHDYHWKHDSSOHLQWRZH´
,QWKH0DOOHXV0DOHILFDUXPDVLPLODUVWRU\LVWROG3XQFKHUDIDPRXVPDJLFLDQRQWKH8SSHU5KLQH7KHJUHDW
HWKQRORJLVW&DVWUHQGXJXSWKHVDPHOHJHQGLQ)LQODQG,WLVFRPPRQDV'U'DVHQWREVHUYHVWRWKH7XUNVDQG
0RQJROLDQV³DQGDOHJHQGRIWKHZLOG6DPR\HGVZKRQHYHUKHDUGRI7HOORUVDZDERRNLQWKHLUOLYHVUHODWHVLW
FKDSWHUDQGYHUVHRIRQHRIWKHLUPDUNVPHQ´)LQDOO\LQWKH3HUVLDQSRHPRI)DULG8GGLQ$WWDUERUQLQZHUHDG
DVWRU\RIDSULQFHZKRVKRRWVDQDSSOHIURPWKHKHDGRIDEHORYHGSDJH,QDOOWKHVHVWRULHVQDPHVDQGPRWLYHVRI
FRXUVHGLIIHUEXWDOOFRQWDLQWKHVDPHHVVHQWLDOLQFLGHQWV,WLVDOZD\VDQXQHUULQJDUFKHUZKRDWWKHFDSULFLRXV
FRPPDQGRIDW\UDQWVKRRWVIURPWKHKHDGRIVRPHRQHGHDUWRKLPDVPDOOREMHFWEHLWDQDSSOHDQXWRUDSLHFHRI
FRLQ7KHDUFKHUDOZD\VSURYLGHVKLPVHOIZLWKDVHFRQGDUURZDQGZKHQTXHVWLRQHGDVWRWKHXVHKHLQWHQGHGWRPDNH
RIKLVH[WUDZHDSRQWKHLQYDULDEOHUHSO\LV³7RNLOOWKHHW\UDQWKDG,VODLQP\VRQ´1RZZKHQDPDUYHOORXV
RFFXUUHQFHLVVDLGWRKDYHKDSSHQHGHYHU\ZKHUHZHPD\IHHOVXUHWKDWLWQHYHUKDSSHQHGDQ\ZKHUH3RSXODUIDQFLHV
SURSDJDWHWKHPVHOYHVLQGHILQLWHO\EXWKLVWRULFDOHYHQWVHVSHFLDOO\WKHVWULNLQJDQGGUDPDWLFRQHVDUHUDUHO\UHSHDWHG
7KHIDFWVKHUHFROOHFWHGOHDGLQHYLWDEO\WRWKHFRQFOXVLRQWKDWWKH7HOOP\WKZDVNQRZQLQLWVJHQHUDOIHDWXUHVWRRXU
$U\DQDQFHVWRUVEHIRUHHYHUWKH\OHIWWKHLUSULPLWLYHGZHOOLQJSODFHLQ&HQWUDO$VLD
,WPD\LQGHHGEHXUJHGWKDWVRPHRQHRIWKHVHZRQGHUIXOPDUNVPHQPD\UHDOO\KDYHH[LVWHGDQGKDYHSHUIRUPHGWKH
IHDWUHFRUGHGLQWKHOHJHQGDQGWKDWKLVWUXHVWRU\FDUULHGDERXWE\KHDUVD\WUDGLWLRQIURPRQHFRXQWU\WRDQRWKHUDQG
IURPDJHWRDJHPD\KDYHIRUPHGWKHWKHPHIRUDOOWKHYDULDWLRQVDERYHPHQWLRQHGMXVWDVWKHIDEOHVRI/D)RQWDLQH
ZHUHSDWWHUQHGDIWHUWKRVHRI$(VRSDQG3KDHGUXVDQGMXVWDVPDQ\RI&KDXFHU¶VWDOHVZHUHFRQVFLRXVO\DGRSWHGIURP
%RFFDFFLR1RGRXEWWKHUHKDVEHHQDJRRGGHDORIERUURZLQJDQGOHQGLQJDPRQJWKHOHJHQGVRIGLIIHUHQWSHRSOHVDV
ZHOODVDPRQJWKHZRUGVRIGLIIHUHQWODQJXDJHVDQGSRVVLEO\HYHQVRPHSLFWXUHVTXHIUDJPHQWRIHDUO\KLVWRU\PD\
KDYHQRZDQGWKHQEHHQFDUULHGDERXWWKHZRUOGLQWKLVPDQQHU%XWDVWKHSKLORORJLVWFDQZLWKDOPRVWXQHUULQJ
FHUWDLQW\GLVWLQJXLVKEHWZHHQWKHQDWLYHDQGWKHLPSRUWHGZRUGVLQDQ\$U\DQODQJXDJHE\H[DPLQLQJWKHLUSKRQHWLF
SHFXOLDULWLHVVRWKHVWXGHQWRISRSXODUWUDGLWLRQVWKRXJKZRUNLQJZLWKIDUOHVVSHUIHFWLQVWUXPHQWVFDQVDIHO\DVVHUW
ZLWKUHIHUHQFHWRDYDVWQXPEHURIOHJHQGVWKDWWKH\FDQQRWKDYHEHHQREWDLQHGE\DQ\SURFHVVRIFRQVFLRXV
ERUURZLQJ7KHGLIILFXOWLHVLQVHSDUDEOHIURPDQ\VXFKK\SRWKHVLVZLOOEHFRPHPRUHDQGPRUHDSSDUHQWDVZHSURFHHG
WRH[DPLQHDIHZRWKHUVWRULHVFXUUHQWLQGLIIHUHQWSRUWLRQVRIWKH$U\DQGRPDLQ
$VWKH6ZLVVPXVWJLYHXSKLV7HOOVRPXVWWKH:HOVKPDQEHGHSULYHGRIKLVEUDYHGRJ*HOOHUWRYHUZKRVHFUXHOIDWH,
FRQIHVVWRKDYLQJVKHGPRUHWHDUVWKDQ,VKRXOGUHJDUGDVZHOOEHVWRZHGXSRQWKHPLVIRUWXQHVRIPDQ\DKXPDQKHURRI
URPDQFH(YHU\RQHNQRZVKRZWKHGHDUROGEUXWHNLOOHGWKHZROIZKLFKKDGFRPHWRGHYRXU/OHZHOO\Q¶VFKLOGDQG
KRZWKHSULQFHUHWXUQLQJKRPHDQGILQGLQJWKHFUDGOHXSVHWDQGWKHGRJ¶VPRXWKGULSSLQJEORRGKDVWLO\VOHZKLV
EHQHIDFWRUEHIRUHWKHFU\RIWKHFKLOGIURPEHKLQGWKHFUDGOHDQGWKHVLJKWRIWKHZROI¶VERG\KDGUHFWLILHGKLVHUURU7R
WKLVGD\WKHYLVLWRUWR6QRZGRQLVWROGWKHWRXFKLQJVWRU\DQGVKRZQWKHSODFHFDOOHG%HWK*HOOHUW>@ZKHUHWKHGRJ¶V
JUDYHLVVWLOOWREHVHHQ1HYHUWKHOHVVWKHVWRU\RFFXUVLQWKHILUHVLGHORUHRIQHDUO\HYHU\$U\DQSHRSOH8QGHUWKH
*HOOHUWIRUPLWVWDUWHGLQWKH3DQFKDWDQWUDDFROOHFWLRQRI6DQVNULWIDEOHVDQGLWKDVHYHQEHHQGLVFRYHUHGLQD&KLQHVH
ZRUNZKLFKGDWHVIURP$'8VXDOO\WKHKHURLVDGRJEXWVRPHWLPHVDIDOFRQDQLFKQHXPRQDQLQVHFWRUHYHQ
DPDQ,Q(J\SWLWWDNHVWKHIROORZLQJFRPLFDOVKDSH³$:DOLRQFHVPDVKHGDSRWIXOORIKHUEVZKLFKDFRRNKDG
SUHSDUHG7KHH[DVSHUDWHGFRRNWKUDVKHGWKHZHOOLQWHQWLRQHGEXWXQIRUWXQDWH:DOLZLWKLQDQLQFKRIKLVOLIHDQGZKHQ
KHUHWXUQHGH[KDXVWHGZLWKKLVHIIRUWVDWEHODERXULQJWKHPDQWRH[DPLQHWKHEURNHQSRWKHGLVFRYHUHGDPRQJVWWKH
KHUEVDSRLVRQRXVVQDNH´>@1RZWKLVVWRU\RIWKH:DOLLVDVPDQLIHVWO\LGHQWLFDOZLWKWKHOHJHQGRI*HOOHUWDVWKH
(QJOLVKZRUG)$7+(5LVZLWKWKH/DWLQSDWHUEXWDVQRRQHZRXOGPDLQWDLQWKDWWKHZRUGIDWKHULVLQDQ\VHQVH
GHULYHGIURPSDWHUVRLWZRXOGEHLPSRVVLEOHWRUHSUHVHQWHLWKHUWKH:HOVKRUWKH(J\SWLDQOHJHQGDVDFRS\RIWKH
RWKHU2EYLRXVO\WKHFRQFOXVLRQLVIRUFHGXSRQXVWKDWWKHVWRULHVOLNHWKHZRUGVDUHUHODWHGFROODWHUDOO\KDYLQJ
GHVFHQGHGIURPDFRPPRQDQFHVWUDOOHJHQGRUKDYLQJEHHQVXJJHVWHGE\RQHDQGWKHVDPHSULPHYDOLGHD
>@$FFRUGLQJWR0U,VDDF7D\ORUWKHQDPHLVUHDOO\GHULYHGIURP³6W&HOHUWD:HOVKVDLQWRIWKHILIWKFHQWXU\WR
ZKRPWKHFKXUFKRI/ODQJHOOHULVFRQVHFUDWHG´ :RUGVDQG3ODFHVS
>@&RPSDUH.ULORI¶VVWRU\RIWKH*QDWDQGWKH6KHSKHUGLQ0U5DOVWRQ¶VH[FHOOHQWYHUVLRQ.ULORIDQGKLV)DEOHVS
0DQ\SDUDOOHOH[DPSOHVDUHFLWHGE\0U%DULQJ*RXOG
&XULRXV0\WKV9RO,SS6HHDOVRWKHVWRU\RI
)ROOLFXOXV6ZDQ*HVWD5RPDQRUXPDG:ULJKW9RO,S
O[[[LL
&ORVHO\FRQQHFWHGZLWKWKH*HOOHUWP\WKDUHWKHVWRULHVRI)DLWKIXO-RKQDQGRI5DPDDQG/X[PDQ,QWKH*HUPDQ
VWRU\)DLWKIXO-RKQDFFRPSDQLHVWKHSULQFHKLVPDVWHURQDMRXUQH\LQTXHVWRIDEHDXWLIXOPDLGHQZKRPKHZLVKHVWR
PDNHKLVEULGH$VWKH\DUHFDUU\LQJKHUKRPHDFURVVWKHVHDV)DLWKIXO-RKQKHDUVVRPHFURZVZKRVHODQJXDJHKH
XQGHUVWDQGVIRUHWHOOLQJWKUHHGDQJHUVLPSHQGLQJRYHUWKHSULQFHIURPZKLFKKLVIULHQGFDQVDYHKLPRQO\E\
VDFULILFLQJKLVRZQOLIH$VVRRQDVWKH\ODQGDKRUVHZLOOVSULQJWRZDUGWKHNLQJZKLFKLIKHPRXQWVLWZLOOEHDUKLP
DZD\IURPKLVEULGHIRUHYHUEXWZKRHYHUVKRRWVWKHKRUVHDQGWHOOVWKHNLQJWKHUHDVRQZLOOEHWXUQHGLQWRVWRQHIURP
WRHWRNQHH7KHQEHIRUHWKHZHGGLQJDEULGDOJDUPHQWZLOOOLHEHIRUHWKHNLQJZKLFKLIKHSXWVLWRQZLOOEXUQKLP
OLNHWKH1HVVRVVKLUWRI+HUDNOHVEXWZKRHYHUWKURZVWKHVKLUWLQWRWKHILUHDQGWHOOVWKHNLQJWKHUHDVRQZLOOEHWXUQHG
LQWRVWRQHIURPNQHHWRKHDUW)LQDOO\GXULQJWKHZHGGLQJIHVWLYLWLHVWKHTXHHQZLOOVXGGHQO\IDOOLQDVZRRQDQG
³XQOHVVVRPHRQHWDNHVWKUHHGURSVRIEORRGIURPKHUULJKWEUHDVWVKHZLOOGLH´EXWZKRHYHUGRHVVRDQGWHOOVWKHNLQJ
WKHUHDVRQZLOOEHWXUQHGLQWRVWRQHIURPKHDGWRIRRW7KXVIRUHZDUQHG)DLWKIXO-RKQVDYHVKLVPDVWHUIURPDOOWKHVH
GDQJHUVEXWWKHNLQJPLVLQWHUSUHWVKLVPRWLYHLQEOHHGLQJKLVZLIHDQGRUGHUVKLPWREHKDQJHG2QWKHVFDIIROGKH
WHOOVKLVVWRU\DQGZKLOHWKHNLQJKXPEOHVKLPVHOILQDQDJRQ\RIUHPRUVHKLVQREOHIULHQGLVWXUQHGLQWRVWRQH
,QWKH6RXWK,QGLDQWDOH/X[PDQDFFRPSDQLHV5DPDZKRLVFDUU\LQJKRPHKLVEULGH/X[PDQRYHUKHDUVWZRRZOV
WDONLQJDERXWWKHSHULOVWKDWDZDLWKLVPDVWHUDQGPLVWUHVV)LUVWKHVDYHVWKHPIURPEHLQJFUXVKHGE\WKHIDOOLQJOLPERI
DEDQ\DQWUHHDQGWKHQKHGUDJVWKHPDZD\IURPDQDUFKZKLFKLPPHGLDWHO\DIWHUJLYHVZD\%\DQGE\DVWKH\UHVW
XQGHUDWUHHWKHNLQJIDOOVDVOHHS$FREUDFUHHSVXSWRWKHTXHHQDQG/X[PDQNLOOVLWZLWKKLVVZRUGEXWDVWKHRZOV
KDGIRUHWROGDGURSRIWKHFREUD¶VEORRGIDOOVRQWKHTXHHQ¶VIRUHKHDG$V/X[PDQOLFNVRIIWKHEORRGWKHNLQJVWDUWV
XSDQGWKLQNLQJWKDWKLVYL]LHULVNLVVLQJKLVZLIHXSEUDLGVKLPZLWKKLVLQJUDWLWXGHZKHUHXSRQ/X[PDQWKURXJKJULHI
DWWKLVXQNLQGLQWHUSUHWDWLRQRIKLVFRQGXFWLVWXUQHGLQWRVWRQH>@
>@6HH&R[0\WKRORJ\RIWKH$U\DQ1DWLRQV9RO,SS

)RUIXUWKHULOOXVWUDWLRQZHPD\UHIHUWRWKH1RUVHWDOHRIWKH³*LDQWZKRKDGQR+HDUWLQKLV%RG\´DVUHODWHGE\'U
'DVHQW7KLVEXUO\PDJLFLDQKDYLQJWXUQHGVL[EURWKHUVZLWKWKHLUZLYHVLQWRVWRQHWKHVHYHQWKEURWKHU²WKHFUDIW\
%RRWVRUPDQ\ZLWWHG2G\VVHXVRI(XURSHDQIRONORUH²VHWVRXWWRREWDLQYHQJHDQFHLIQRWUHSDUDWLRQIRUWKHHYLOGRQH
WRKLVNLWKDQGNLQ2QWKHZD\KHVKRZVWKHNLQGQHVVRIKLVQDWXUHE\UHVFXLQJIURPGHVWUXFWLRQDUDYHQDVDOPRQDQG
DZROI7KHJUDWHIXOZROIFDUULHVKLPRQKLVEDFNWRWKHJLDQW¶VFDVWOHZKHUHWKHORYHO\SULQFHVVZKRPWKHPRQVWHU
NHHSVLQLUNVRPHERQGDJHSURPLVHVWRDFWLQEHKDOIRI%RRWVWKHSDUWRI'HOLODKDQGWRILQGRXWLISRVVLEOHZKHUHKHU
ORUGNHHSVKLVKHDUW7KHJLDQWOLNHWKH-HZLVKKHURILQDOO\VXFFXPEVWRIHPLQLQHEODQGLVKPHQWV³)DUIDUDZD\LQD
ODNHOLHVDQLVODQGRQWKDWLVODQGVWDQGVDFKXUFKLQWKDWFKXUFKLVDZHOOLQWKDWZHOOVZLPVDGXFNLQWKDWGXFNWKHUH
LVDQHJJDQGLQWKDWHJJWKHUHOLHVP\KHDUW\RXGDUOLQJ´%RRWVWKXVLQVWUXFWHGULGHVRQWKHZROI¶VEDFNWRWKHLVODQG
WKHUDYHQIOLHVWRWKHWRSRIWKHVWHHSOHDQGJHWVWKHFKXUFKNH\VWKHVDOPRQGLYHVWRWKHERWWRPRIWKHZHOODQGEULQJV
XSWKHHJJIURPWKHSODFHZKHUHWKHGXFNKDGGURSSHGLWDQGVR%RRWVEHFRPHVPDVWHURIWKHVLWXDWLRQ$VKHVTXHH]HV
WKHHJJWKHJLDQWLQPRUWDOWHUURUEHJVDQGSUD\VIRUKLVOLIHZKLFK%RRWVSURPLVHVWRVSDUHRQFRQGLWLRQWKDWKLV
EURWKHUVDQGWKHLUEULGHVVKRXOGEHUHOHDVHGIURPWKHLUHQFKDQWPHQW%XWZKHQDOOKDVEHHQGXO\HIIHFWHGWKH
WUHDFKHURXV\RXWKVTXHH]HVWKHHJJLQWZRDQGWKHJLDQWLQVWDQWO\EXUVWV
7KHVDPHVWRU\KDVODWHO\EHHQIRXQGLQ6RXWKHUQ,QGLDDQGLVSXEOLVKHGLQ0LVV)UHUH¶VUHPDUNDEOHFROOHFWLRQRIWDOHV
HQWLWOHG³2OG'HFFDQ'D\V´,QWKH+LQGXYHUVLRQWKHVHYHQGDXJKWHUVRIDUDMDKZLWKWKHLUKXVEDQGVDUHWUDQVIRUPHG
LQWRVWRQHE\WKHJUHDWPDJLFLDQ3XQFKNLQDOOVDYHWKH\RXQJHVWGDXJKWHUZKRP3XQFKNLQNHHSVVKXWXSLQDWRZHU
XQWLOE\WKUHDWVRUFRD[LQJKHPD\SUHYDLOXSRQKHUWRPDUU\KLP%XWWKHFDSWLYHSULQFHVVOHDYHVDVRQDWKRPHLQWKH
FUDGOHZKRJURZVXSWRPDQKRRGXQPROHVWHGDQGILQDOO\XQGHUWDNHVWKHUHVFXHRIKLVIDPLO\$IWHUORQJDQGZHDU\
ZDQGHULQJVKHILQGVKLVPRWKHUVKXWXSLQ3XQFKNLQ¶VWRZHUDQGSHUVXDGHVKHUWRSOD\WKHSDUWRIWKHSULQFHVVLQWKH
1RUVHOHJHQG7KHWULFNLVHTXDOO\VXFFHVVIXO³+XQGUHGVRIWKRXVDQGVRIPLOHVDZD\WKHUHOLHVDGHVRODWHFRXQWU\
FRYHUHGZLWKWKLFNMXQJOH,QWKHPLGVWRIWKHMXQJOHJURZVDFLUFOHRISDOPWUHHVDQGLQWKHFHQWUHRIWKHFLUFOHVWDQG
VL[MDUVIXOORIZDWHUSLOHGRQHDERYHDQRWKHUEHORZWKHVL[WKMDULVDVPDOOFDJHZKLFKFRQWDLQVDOLWWOHJUHHQSDUURWRQ
WKHOLIHRIWKHSDUURWGHSHQGVP\OLIHDQGLIWKHSDUURWLVNLOOHG,PXVWGLH´>@7KH\RXQJSULQFHILQGVWKHSODFHJXDUGHG
E\DKRVWRIGUDJRQVEXWVRPHHDJOHWVZKRPKHKDVVDYHGIURPDGHYRXULQJVHUSHQWLQWKHFRXUVHRIKLVMRXUQH\WDNH
KLPRQWKHLUFURVVHGZLQJVDQGFDUU\KLPWRWKHSODFHZKHUHWKHMDUVDUHVWDQGLQJ+HLQVWDQWO\RYHUWXUQVWKHMDUVDQG
VHL]LQJWKHSDUURWREWDLQVIURPWKHWHUULILHGPDJLFLDQIXOOUHSDUDWLRQ$VVRRQDVKLVRZQIULHQGVDQGDVWDWHO\
SURFHVVLRQRIRWKHUUR\DORUQREOHYLFWLPVKDYHEHHQVHWDWOLEHUW\KHSURFHHGVWRSXOOWKHSDUURWWRSLHFHV$VWKHZLQJV
DQGOHJVFRPHDZD\VRWXPEOHRIIWKHDUPVDQGOHJVRIWKHPDJLFLDQDQGILQDOO\DVWKHSULQFHZULQJVWKHELUG¶VQHFN
3XQFKNLQWZLVWVKLVRZQKHDGURXQGDQGGLHV
>@7KHVDPHLQFLGHQWRFFXUVLQWKH$UDELDQVWRU\RI6H\IHO0XORRNDQG%HGHHDHO-HPDOZKHUHWKH-LQQL¶VVRXOLV
HQFORVHGLQWKHFURSRIDVSDUURZDQGWKHVSDUURZLPSULVRQHGLQDVPDOOER[DQGWKLVHQFORVHGLQDQRWKHUVPDOOER[
DQGWKLVDJDLQLQVHYHQRWKHUER[HVZKLFKDUHSXWLQWRVHYHQFKHVWVFRQWDLQHGLQDFRIIHURIPDUEOHZKLFKLVVXQNLQ
WKHRFHDQWKDWVXUURXQGVWKHZRUOG6H\IHO0XORRNUDLVHVWKHFRIIHUE\WKHDLGRI6XOH\PDQ¶VVHDOULQJDQGKDYLQJ
H[WULFDWHGWKHVSDUURZVWUDQJOHVLWZKHUHXSRQWKH-LQQL¶VERG\LVFRQYHUWHGLQWRDKHDSRIEODFNDVKHVDQG6H\IHO
0XORRNHVFDSHVZLWKWKHPDLGHQ'ROHW.KDWRRQ6HH/DQH¶V$UDELDQ1LJKWV9RO,,,S
7KHVWRU\LVDOVRWROGLQWKHKLJKODQGVRI6FRWODQGDQGVRPHSRUWLRQVRILWZLOOEHUHFRJQL]HGE\WKHUHDGHUDVLQFLGHQWV
LQWKH$UDELDQWDOHRIWKH3ULQFHVV3DUL]DGH7KHXQLRQRIFORVHFRUUHVSRQGHQFHLQFRQFHSWLRQZLWKPDQLIHVW
LQGHSHQGHQFHLQWKHPDQDJHPHQWRIWKHGHWDLOVRIWKHVHVWRULHVLVVWULNLQJHQRXJKEXWLWLVDSKHQRPHQRQZLWKZKLFK
ZHEHFRPHTXLWHIDPLOLDUDVZHSURFHHGLQWKHVWXG\RI$U\DQSRSXODUOLWHUDWXUH7KHOHJHQGRIWKH0DVWHU7KLHILVQR
OHVVUHPDUNDEOHWKDQWKDWRI3XQFKNLQ,QWKH6FDQGLQDYLDQWDOHWKH7KLHIZLVKLQJWRJHWSRVVHVVLRQRIDIDUPHU¶VR[
FDUHIXOO\KDQJVKLPVHOIWRDWUHHE\WKHURDGVLGH7KHIDUPHUSDVVLQJE\ZLWKKLVR[LVLQGHHGVWUXFNE\WKHVLJKWRIWKH
GDQJOLQJERG\EXWWKLQNVLWQRQHRIKLVEXVLQHVVDQGGRHVQRWVWRSWRLQWHUIHUH1RVRRQHUKDVKHSDVVHGWKDQWKH7KLHI
OHWVKLPVHOIGRZQDQGUXQQLQJVZLIWO\DORQJDE\SDWKKDQJVKLPVHOIZLWKHTXDOSUHFDXWLRQWRDVHFRQGWUHH7KLVWLPH
WKHIDUPHULVDVWRQLVKHGDQGSX]]OHGEXWZKHQIRUWKHWKLUGWLPHKHPHHWVWKHVDPHXQZRQWHGVSHFWDFOHWKLQNLQJWKDW
WKUHHVXLFLGHVLQRQHPRUQLQJDUHWRRPXFKIRUHDV\FUHGHQFHKHOHDYHVKLVR[DQGUXQVEDFNWRVHHZKHWKHUWKHRWKHU
WZRERGLHVDUHUHDOO\ZKHUHKHWKRXJKWKHVDZWKHP:KLOHKHLVIUDPLQJK\SRWKHVHVRIZLWFKFUDIWE\ZKLFKWRH[SODLQ
WKHSKHQRPHQRQWKH7KLHIJHWVDZD\ZLWKWKHR[,QWKH+LWRSDGHVDWKHVWRU\UHFHLYHVDILQHUSRLQW³$%UDKPDQZKR
KDGYRZHGDVDFULILFHZHQWWRWKHPDUNHWWREX\DJRDW7KUHHWKLHYHVVDZKLPDQGZDQWHGWRJHWKROGRIWKHJRDW
7KH\VWDWLRQHGWKHPVHOYHVDWLQWHUYDOVRQWKHKLJKURDG:KHQWKH%UDKPDQZKRFDUULHGWKHJRDWRQKLVEDFN
DSSURDFKHGWKHILUVWWKLHIWKHWKLHIVDLGµ%UDKPDQZK\GR\RXFDUU\DGRJRQ\RXUEDFN"¶7KH%UDKPDQUHSOLHGµ,WLV
QRWDGRJLWLVDJRDW¶$OLWWOHZKLOHDIWHUKHZDVDFFRVWHGE\WKHVHFRQGWKLHIZKRVDLGµ%UDKPDQZK\GR\RXFDUU\D
GRJRQ\RXUEDFN"¶7KH%UDKPDQIHOWSHUSOH[HGSXWWKHJRDWGRZQH[DPLQHGLWWRRNLWXSDJDLQDQGZDONHGRQ
6RRQDIWHUKHZDVVWRSSHGE\WKHWKLUGWKLHIZKRVDLGµ%UDKPDQZK\GR\RXFDUU\DGRJRQ\RXUEDFN"¶7KHQWKH
%UDKPDQZDVIULJKWHQHGWKUHZGRZQWKHJRDWDQGZDONHGKRPHWRSHUIRUPKLVDEOXWLRQVIRUKDYLQJWRXFKHGDQ
XQFOHDQDQLPDO7KHWKLHYHVWRRNWKHJRDWDQGDWHLW´7KHDGURLWQHVVRIWKH1RUVH.LQJLQ³7KH7KUHH3ULQFHVVHVRI
:KLWHODQG´VKRZVEXWSRRUO\LQFRPSDULVRQZLWKWKHNHHQSV\FKRORJLFDOLQVLJKWDQGF\QLFDOVDUFDVPRIWKHVH+LQGX
VKDUSHUV,QWKHFRXUVHRIKLVWUDYHOVWKLVSULQFHPHWWKUHHEURWKHUVILJKWLQJRQDORQHO\PRRU7KH\KDGEHHQILJKWLQJ
IRUDKXQGUHG\HDUVDERXWWKHSRVVHVVLRQRIDKDWDFORDNDQGDSDLURIERRWVZKLFKZRXOGPDNHWKHZHDUHULQYLVLEOH
DQGFRQYH\KLPLQVWDQWO\ZKLWKHUVRHYHUKHPLJKWZLVKWRJR7KH.LQJFRQVHQWVWRDFWDVXPSLUHSURYLGHGKHPD\
RQFHWU\WKHYLUWXHRIWKHPDJLFJDUPHQWVEXWRQFHFORWKHGLQWKHPRIFRXUVHKHGLVDSSHDUVOHDYLQJWKHFRPEDWDQWVWR
VLWGRZQDQGVXFNWKHLUWKXPEV1RZLQWKH³6HDRI6WUHDPVRI6WRU\´ZULWWHQLQWKHWZHOIWKFHQWXU\E\6RPDGHYDRI
&DVKPHUHWKH,QGLDQ.LQJ3XWUDNDZDQGHULQJLQWKH9LQGK\D0RXQWDLQVVLPLODUO\GLVFRPILWVWZREURWKHUVZKRDUH
TXDUUHOOLQJRYHUDSDLURIVKRHVZKLFKDUHOLNHWKHVDQGDOVRI+HUPHVDQGDERZOZKLFKKDVWKHVDPHYLUWXHDV
$ODGGLQ¶VODPS³:K\GRQ¶W\RXUXQDUDFHIRUWKHP"´VXJJHVWV3XWUDNDDQGDVWKHWZREORFNKHDGVVWDUWIXULRXVO\RII
KHTXLHWO\SLFNVXSWKHERZOWLHVRQWKHVKRHVDQGIOLHVDZD\>@
>@7KHVDPHLQFLGHQWLVUHSHDWHGLQWKHVWRU\RI+DVVDQRI(O%DVUDK6HH/DQH¶V$UDELDQ1LJKWV9RO,,,S
,WLVXQQHFHVVDU\WRFLWHIXUWKHULOOXVWUDWLRQV7KHWDOHVKHUHTXRWHGDUHIDLUVDPSOHVRIWKHUHPDUNDEOHFRUUHVSRQGHQFH
ZKLFKKROGVJRRGWKURXJKDOOWKHYDULRXVVHFWLRQVRI$U\DQIRONORUH7KHK\SRWKHVLVRIODWHUDOGLIIXVLRQDVZHPD\
FDOOLWPDQLIHVWO\IDLOVWRH[SODLQFRLQFLGHQFHVZKLFKDUHPDLQWDLQHGRQVXFKDQLPPHQVHVFDOH,WLVTXLWHFUHGLEOHWKDW
RQHQDWLRQPD\KDYHERUURZHGIURPDQRWKHUDVROLWDU\OHJHQGRIDQDUFKHUZKRSHUIRUPVWKHIHDWVRI7HOODQG
3DOQDWRNLEXWLWLVXWWHUO\LQFUHGLEOHWKDWWHQWKRXVDQGVWRULHVFRQVWLWXWLQJWKHHQWLUHPDVVRIKRXVHKROGP\WKRORJ\
WKURXJKRXWDGR]HQVHSDUDWHQDWLRQVVKRXOGKDYHEHHQKDQGHGIURPRQHWRDQRWKHULQWKLVZD\1RRQHZRXOGYHQWXUH
WRVXJJHVWWKDWWKHROGJUDQQLHVRI,FHODQGDQG1RUZD\WRZKRPZHRZHVXFKVWRULHVDVWKH0DVWHU7KLHIDQGWKH
3ULQFHVVHVRI:KLWHODQGKDGHYHUUHDG6RPDGHYDRUKHDUGRIWKHWUHDVXUHVRI5KDPSVLQLWRV$ODUJHSURSRUWLRQRIWKH
WDOHVZLWKZKLFKZHDUHGHDOLQJZHUHXWWHUO\XQNQRZQWROLWHUDWXUHXQWLOWKH\ZHUHWDNHQGRZQE\*ULPPDQG)UHUHDQG
&DVWUHQDQG&DPSEHOOIURPWKHOLSVRILJQRUDQWSHDVDQWVQXUVHVRUKRXVHVHUYDQWVLQ*HUPDQ\DQG+LQGXVWDQLQ
6LEHULDDQG6FRWODQG<HWDV0U&R[REVHUYHVWKHVHROGPHQDQGZRPHQVLWWLQJE\WKHFKLPQH\FRUQHUDQG
VRPHZKDWWLPLGO\UHFRXQWLQJWRWKHOLWHUDU\H[SORUHUWKHVWRULHVZKLFKWKH\KDGOHDUQHGLQFKLOGKRRGIURPWKHLURZQ
QXUVHVDQGJUDQGPDV³UHSURGXFHWKHPRVWVXEWOHWXUQVRIWKRXJKWDQGH[SUHVVLRQDQGDQHQGOHVVVHULHVRIFRPSOLFDWHG
QDUUDWLYHVLQZKLFKWKHRUGHURILQFLGHQWVDQGWKHZRUGVRIWKHVSHDNHUVDUHSUHVHUYHGZLWKDILGHOLW\QRZKHUH
SDUDOOHOHGLQWKHRUDOWUDGLWLRQRIKLVWRULFDOHYHQWV,WPD\VDIHO\EHVDLGWKDWQRVHULHVRIVWRULHVLQWURGXFHGLQWKHIRUP
RIWUDQVODWLRQVIURPRWKHUODQJXDJHVFRXOGHYHUWKXVKDYHILOWHUHGGRZQLQWRWKHORZHVWVWUDWDRIVRFLHW\DQGWKHQFH
KDYHVSUXQJXSDJDLQOLNH$QWDLRVZLWKJUHDWHUHQHUJ\DQGKHLJKWHQHGEHDXW\´7KHUHLVLQGHHGQRDOWHUQDWLYHIRUXV
EXWWRDGPLWWKDWWKHVHILUHVLGHWDOHVKDYHEHHQKDQGHGGRZQIURPSDUHQWWRFKLOGIRUPRUHWKDQDKXQGUHGJHQHUDWLRQV
WKDWWKHSULPLWLYH$U\DQFRWWDJHUDVKHWRRNKLVHYHQLQJPHDORI\DYDDQGVLSSHGKLVIHUPHQWHGPHDGOLVWHQHGZLWKKLV
FKLOGUHQWRWKHVWRULHVRI%RRWVDQG&LQGHUHOODDQGWKH0DVWHU7KLHILQWKHGD\VZKHQWKHVTXDW/DSODQGHUZDVPDVWHU
RI(XURSHDQGWKHGDUNVNLQQHG6XGUDZDVDV\HWXQPROHVWHGLQWKH3XQMDE2QO\VXFKFRPPXQLW\RIRULJLQFDQH[SODLQ
WKHFRPPXQLW\LQFKDUDFWHUEHWZHHQWKHVWRULHVWROGE\WKH$U\DQ¶VGHVFHQGDQWVIURPWKHMXQJOHVRI&H\ORQWRWKH
KLJKODQGVRI6FRWODQG
7KLVFRQFOXVLRQHVVHQWLDOO\PRGLILHVRXUYLHZRIWKHRULJLQDQGJURZWKRIDOHJHQGOLNHWKDWRI:LOOLDP7HOO7KHFDVH
RIWKH7HOOOHJHQGLVUDGLFDOO\GLIIHUHQWIURPWKHFDVHRIWKHEOLQGQHVVRI%HOLVDULXVRUWKHEXUQLQJRIWKH$OH[DQGULDQ
OLEUDU\E\RUGHURI2PDU7KHODWWHUDUHLVRODWHGVWRULHVRUEHOLHIVWKHIRUPHULVRQHRIDIDPLO\RIVWRULHVRUEHOLHIV
7KHODWWHUDUHXQWUXVWZRUWK\WUDGLWLRQVRIGRXEWIXOHYHQWVEXWLQGHDOLQJZLWKWKHIRUPHUZHDUHIDFHWRIDFHZLWKD
0<7+
:KDWWKHQLVDP\WK"7KHWKHRU\RI(XKHPHURVZKLFKZDVVRIDVKLRQDEOHDFHQWXU\DJRLQWKHGD\VRIWKH$EEH
%DQLHUKDVORQJVLQFHEHHQVRXWWHUO\DEDQGRQHGWKDWWRUHIXWHLWQRZLVEXWWRVOD\WKHVODLQ7KHSHFXOLDULW\RIWKLV
WKHRU\ZDVWKDWLWFXWDZD\DOOWKHH[WUDRUGLQDU\IHDWXUHVRIDJLYHQP\WKZKHUHLQGZHOWLWVLQPRVWVLJQLILFDQFHDQGWR
WKHGXOODQGXVHOHVVUHVLGXXPDFFRUGHGWKHGLJQLW\RISULPHYDOKLVWRU\,QWKLVZD\WKHP\WKZDVORVWZLWKRXW
FRPSHQVDWLRQDQGWKHVWXGHQWLQVHHNLQJJRRGGLJHVWLEOHEUHDGIRXQGEXWWKHKDUGHVWRISHEEOHV&RQVLGHUHGPHUHO\
DVDSUHWW\VWRU\WKHOHJHQGRIWKHJROGHQIUXLWZDWFKHGE\WKHGUDJRQLQWKHJDUGHQRIWKH+HVSHULGHVLVQRWZLWKRXWLWV
YDOXH%XWZKDWPHULWFDQWKHUHEHLQWKHJUDWXLWRXVVWDWHPHQWZKLFKGHJUDGLQJWKHJUDQG'RULFKHURWRDOHYHOZLWKDQ\
YXOJDUIUXLWVWHDOHUPDNHV+HUDNOHVEUHDNDFORVHZLWKIRUFHDQGDUPVDQGFDUU\RIIDFURSRIRUDQJHVZKLFKKDGEHHQ
JXDUGHGE\PDVWLIIV",WLVVWLOOZRUVHZKHQZHFRPHWRWKHPRUHKRPHO\IRONORUHZLWKZKLFKWKHVWXGHQWRIP\WKRORJ\
QRZKDVWRGHDO7KHWKHRULHVRI%DQLHUZKLFKOLPSHGDQGVWXPEOHGDZNZDUGO\HQRXJKZKHQLWZDVRQO\DTXHVWLRQRI
+HUPHVDQG0LQRVDQG2GLQKDYHIDOOHQQHYHUWRULVHDJDLQVLQFHWKHSUREOHPVRI3XQFKNLQDQG&LQGHUHOODDQGWKH
%OXH%HOWKDYHEHJXQWRGHPDQGVROXWLRQ7KHFRQFOXVLRQKDVEHHQJUDGXDOO\IRUFHGXSRQWKHVWXGHQWWKDWWKH
PDUYHOORXVSRUWLRQRIWKHVHROGVWRULHVLVQRLOOHJLWLPDWHH[WUHVFHQFHEXWZDVUDWKHUWKHSLWKDQGFHQWUHRIWKH
ZKROH>@LQGD\VZKHQWKHUHZDVQRVXSHUQDWXUDOEHFDXVHLWKDGQRW\HWEHHQGLVFRYHUHGWKDWWKHUHZDVVXFKDWKLQJDV
QDWXUH7KHUHOLJLRXVP\WKVRIDQWLTXLW\DQGWKHILUHVLGHOHJHQGVRIDQFLHQWDQGPRGHUQWLPHVKDYHWKHLUFRPPRQURRW
LQWKHPHQWDOKDELWVRISULPHYDOKXPDQLW\7KH\DUHWKHHDUOLHVWUHFRUGHGXWWHUDQFHVRIPHQFRQFHUQLQJWKHYLVLEOH
SKHQRPHQDRIWKHZRUOGLQWRZKLFKWKH\ZHUHERUQ
>@³5HWUDQFKHUOHPHUYHLOOHX[G¶XQP\WKHF¶HVWOHVXSSULPHU´²%UHDO+HUFXOHHW&DFXVS
7KDWSURVDLFDQGFROGO\UDWLRQDOWHPSHUZLWKZKLFKPRGHUQPHQDUHZRQWWRUHJDUGQDWXUDOSKHQRPHQDZDVLQHDUO\
WLPHVXQNQRZQ:HKDYHFRPHWRUHJDUGDOOHYHQWVDVWDNLQJSODFHUHJXODUO\LQVWULFWFRQIRUPLW\WRODZZKDWHYHURXU
RIILFLDOWKHRULHVPD\EHZHLQVWLQFWLYHO\WDNHWKLVYLHZRIWKLQJV%XWRXUSULPLWLYHDQFHVWRUVNQHZQRWKLQJDERXWODZV
RIQDWXUHQRWKLQJDERXWSK\VLFDOIRUFHVQRWKLQJDERXWWKHUHODWLRQVRIFDXVHDQGHIIHFWQRWKLQJDERXWWKHQHFHVVDU\
UHJXODULW\RIWKLQJV7KHUHZDVDWLPHLQWKHKLVWRU\RIPDQNLQGZKHQWKHVHWKLQJVKDGQHYHUEHHQLQTXLUHGLQWRDQG
ZKHQQRJHQHUDOL]DWLRQVDERXWWKHPKDGEHHQIUDPHGWHVWHGRUHVWDEOLVKHG7KHUHZDVQRFRQFHSWLRQRIDQRUGHURI
QDWXUHDQGWKHUHIRUHQRGLVWLQFWFRQFHSWLRQRIDVXSHUQDWXUDORUGHURIWKLQJV7KHUHZDVQREHOLHILQPLUDFOHVDV
LQIUDFWLRQVRIQDWXUDOODZVEXWWKHUHZDVDEHOLHILQWKHRFFXUUHQFHRIZRQGHUIXOHYHQWVWRRPLJKW\WRKDYHEHHQ
EURXJKWDERXWE\RUGLQDU\PHDQV7KHUHZDVDQXQOLPLWHGFDSDFLW\IRUEHOLHYLQJDQGIDQF\LQJEHFDXVHIDQF\DQGEHOLHI
KDGQRW\HWEHHQFKHFNHGDQGKHDGHGRIILQYDULRXVGLUHFWLRQVE\HVWDEOLVKHGUXOHVRIH[SHULHQFH3K\VLFDOVFLHQFHLVD
YHU\ODWHDFTXLVLWLRQRIWKHKXPDQPLQGEXWZHDUHDOUHDG\VXIILFLHQWO\LPEXHGZLWKLWWREHDOPRVWFRPSOHWHO\
GLVDEOHGIURPFRPSUHKHQGLQJWKHWKRXJKWVRIRXUDQFHVWRUV³+RZ)LQQFRVPRJRQLVWVFRXOGKDYHEHOLHYHGWKHHDUWK
DQGKHDYHQWREHPDGHRXWRIDVHYHUHGHJJWKHXSSHUFRQFDYHVKHOOUHSUHVHQWLQJKHDYHQWKH\RONEHLQJHDUWKDQGWKH
FU\VWDOVXUURXQGLQJIOXLGWKHFLUFXPDPELHQWRFHDQLVWRXVLQFRPSUHKHQVLEOHDQG\HWLWUHPDLQVDIDFWWKDWWKH\GLGVR
UHJDUGWKHP+RZWKH6FDQGLQDYLDQVFRXOGKDYHVXSSRVHGWKHPRXQWDLQVWREHWKHPRXOGHULQJERQHVRIDPLJKW\-RWXQ
DQGWKHHDUWKWREHKLVIHVWHULQJIOHVKZHFDQQRWFRQFHLYH\HWVXFKDWKHRU\ZDVVROHPQO\WDXJKWDQGDFFHSWHG+RZ
WKHDQFLHQW,QGLDQVFRXOGUHJDUGWKHUDLQFORXGVDVFRZVZLWKIXOOXGGHUVPLONHGE\WKHZLQGVRIKHDYHQLVEH\RQGRXU
FRPSUHKHQVLRQDQG\HWWKHLU9HGDFRQWDLQVLQGLVSXWDEOHWHVWLPRQ\WRWKHIDFWWKDWWKH\ZHUHVRUHJDUGHG´:HKDYH
RQO\WRUHDG0U%DULQJ*RXOG¶VERRNRI³&XULRXV0\WKV´IURPZKLFK,KDYHMXVWTXRWHGRUWRGLSLQWR0U7KRUSH¶V
WUHDWLVHRQ³1RUWKHUQ0\WKRORJ\´WRUHDOL]HKRZYDVWLVWKHGLIIHUHQFHEHWZHHQRXUVWDQGSRLQWDQGWKDWIURPZKLFKLQ
WKHODWHU0LGGOH$JHVRXULPPHGLDWHIRUHIDWKHUVUHJDUGHGWKLQJV7KHIULJKWIXOVXSHUVWLWLRQRIZHUHZROYHVLVDJRRG
LQVWDQFH,QWKRVHGD\VLWZDVILUPO\EHOLHYHGWKDWPHQFRXOGEHDQGZHUHLQWKHKDELWRIEHLQJWUDQVIRUPHGLQWR
ZROYHV,WZDVEHOLHYHGWKDWZRPHQPLJKWEULQJIRUWKVQDNHVRUSRRGOHGRJV,WZDVEHOLHYHGWKDWLIDPDQKDGKLVVLGH
SLHUFHGLQEDWWOH\RXFRXOGFXUHKLPE\QXUVLQJWKHVZRUGZKLFKLQIOLFWHGWKHZRXQG³$VODWHDVD*HUPDQZULWHU
ZRXOGLOOXVWUDWHDWKXQGHUVWRUPGHVWUR\LQJDFURSRIFRUQE\DSLFWXUHRIDGUDJRQGHYRXULQJWKHSURGXFHRIWKHILHOG
ZLWKKLVIODPLQJWRQJXHDQGLURQWHHWK´
1RZLIVXFKZDVWKHFRQGLWLRQRIWKHKXPDQLQWHOOHFWRQO\WKUHHRUIRXUFHQWXULHVDJRZKDWPXVWLWKDYHEHHQLQWKDW
GDUNDQWLTXLW\ZKHQQRWHYHQWKHFUXGHVWJHQHUDOL]DWLRQVRI*UHHNRURI2ULHQWDOVFLHQFHKDGEHHQUHDFKHG"7KHVDPH
PLJKW\SRZHURILPDJLQDWLRQZKLFKQRZUHVWUDLQHGDQGJXLGHGE\VFLHQWLILFSULQFLSOHVOHDGVXVWRGLVFRYHULHVDQG
LQYHQWLRQVPXVWWKHQKDYHZLOGO\UXQULRWLQP\WKRORJLFILFWLRQVZKHUHE\WRH[SODLQWKHSKHQRPHQDRIQDWXUH
.QRZLQJQRWKLQJZKDWHYHURISK\VLFDOIRUFHVRIWKHEOLQGVWHDGLQHVVZLWKZKLFKDJLYHQHIIHFWLQYDULDEO\IROORZVLWV
FDXVHWKHPHQRISULPHYDODQWLTXLW\FRXOGLQWHUSUHWWKHDFWLRQVRIQDWXUHRQO\DIWHUWKHDQDORJ\RIWKHLURZQDFWLRQV
7KHRQO\IRUFHWKH\NQHZZDVWKHIRUFHRIZKLFKWKH\ZHUHGLUHFWO\FRQVFLRXVWKHIRUFHRIZLOO$FFRUGLQJO\WKH\
LPDJLQHGDOOWKHRXWZDUGZRUOGWREHHQGRZHGZLWKYROLWLRQDQGWREHGLUHFWHGE\LW7KH\SHUVRQLILHGHYHU\WKLQJ
VN\FORXGVWKXQGHUVXQPRRQRFHDQHDUWKTXDNHZKLUOZLQG>@7KHFRPSDUDWLYHO\HQOLJKWHQHG$WKHQLDQVRIWKHDJH
RI3HULNOHVDGGUHVVHGWKHVN\DVDSHUVRQDQGSUD\HGWRLWWRUDLQXSRQWKHLUJDUGHQV>@$QGIRUFDOOLQJWKHPRRQD
PDVVRIGHDGPDWWHU$QD[DJRUDVFDPHQHDUORVLQJKLVOLIH7RWKHDQFLHQWVWKHPRRQZDVQRWDOLIHOHVVEDOORIVWRQHV
DQGFORGVLWZDVWKHKRUQHGKXQWUHVV$UWHPLVFRXUVLQJWKURXJKWKHXSSHUHWKHURUEDWKLQJKHUVHOILQWKHFOHDUODNHRU
LWZDV$SKURGLWHSURWHFWUHVVRIORYHUVERUQRIWKHVHDIRDPLQWKH(DVWQHDU&\SUXV7KHFORXGVZHUHQRERGLHVRI
YDSRUL]HGZDWHUWKH\ZHUHFRZVZLWKVZHOOLQJXGGHUVGULYHQWRWKHPLONLQJE\+HUPHVWKHVXPPHUZLQGRUJUHDW
VKHHSZLWKPRLVWIOHHFHVVODLQE\WKHXQHUULQJDUURZVRI%HOOHURSKRQWKHVXQRUVZDQPDLGHQVIOLWWLQJDFURVVWKH
ILUPDPHQW9DON\ULHVKRYHULQJRYHUWKHEDWWOHILHOGWRUHFHLYHWKHVRXOVRIIDOOLQJKHURHVRUDJDLQWKH\ZHUHPLJKW\
PRXQWDLQVSLOHGRQHDERYHDQRWKHULQZKRVHFDYHUQRXVUHFHVVHVWKHGLYLQLQJZDQGRIWKHVWRUPJRG7KRUUHYHDOHG
KLGGHQWUHDVXUHV7KH\HOORZKDLUHGVXQ3KRLERVGURYHZHVWHUO\DOOGD\LQKLVIODPLQJFKDULRWRUSHUKDSVDV
0HOHDJURVUHWLUHGIRUDZKLOHLQGLVJXVWIURPWKHVLJKWRIPHQZHGGHGDWHYHQWLGHWKHYLROHWOLJKW 2LQRQH,ROH 
ZKLFKKHKDGIRUVDNHQLQWKHPRUQLQJVDQNDV+HUDNOHVXSRQDEOD]LQJIXQHUDOS\UHRUOLNH$JDPHPQRQSHULVKHGLQ
DEORRGVWDLQHGEDWKRUDVWKHILVKJRG'DJRQVZDPQLJKWO\WKURXJKWKHVXEWHUUDQHDQZDWHUVWRDSSHDUHDVWZDUG
DJDLQDWGD\EUHDN6RPHWLPHV3KDHWKRQKLVUDVKLQH[SHULHQFHGVRQZRXOGWDNHWKHUHLQVDQGGULYHWKHVRODUFKDULRW
WRRQHDUWKHHDUWKFDXVLQJWKHIUXLWVWRSHULVKDQGWKHJUDVVWRZLWKHUDQGWKHZHOOVWRGU\XS6RPHWLPHVWRRWKHJUHDW
DOOVHHLQJGLYLQLW\LQKLVZUDWKDWWKHLPSLHW\RIPHQZRXOGVKRRWGRZQKLVVFRUFKLQJDUURZVFDXVLQJSHVWLOHQFHWR
VSUHDGRYHUWKHODQG6WLOORWKHUFRQFHSWLRQVFOXVWHUHGDURXQGWKHVXQ1RZLWZDVWKHZRQGHUIXOWUHDVXUHKRXVHLQWR
ZKLFKQRRQHFRXOGORRNDQGOLYHDQGDJDLQLWZDV,[LRQKLPVHOIERXQGRQWKHILHU\ZKHHOLQSXQLVKPHQWIRUYLROHQFH
RIIHUHGWR+HUHWKHTXHHQRIWKHEOXHDLU
>@³1RGLVWLQFWLRQEHWZHHQWKHDQLPDWHDQGLQDQLPDWHLVPDGHLQWKHODQJXDJHVRIWKH(VNLPRVWKH&KRFWDZVWKH
0XVNRJKHHDQGWKH&DGGR2QO\WKH,URTXRLV&KHURNHHDQGWKH$OJRQTXLQ/HQDSHKDYHLWVRIDUDVLVNQRZQDQG
ZLWKWKHPLWLVSDUWLDO´$FFRUGLQJWRWKH)LMLDQV³YHJHWDEOHVDQGVWRQHVQD\HYHQWRROVDQGZHDSRQVSRWVDQGFDQRHV
KDYHVRXOVWKDWDUHLPPRUWDODQGWKDWOLNHWKHVRXOVRIPHQSDVVRQDWODVWWR0EXOXWKHDERGHRIGHSDUWHGVSLULWV´²
0¶/HQQDQ7KH:RUVKLSRI$QLPDOVDQG3ODQWV)RUWQLJKWO\5HYLHZ9RO;,,S
>@0DUFXV$XUHOLXV9
7KLVWKHRU\RIDQFLHQWP\WKRORJ\LVQRWRQO\EHDXWLIXODQGSODXVLEOHLWLVLQLWVHVVHQWLDOSRLQWVGHPRQVWUDWHG,WVWDQGV
RQDVILUPDIRXQGDWLRQDV*ULPP¶VODZLQSKLORORJ\RUWKHXQGXODWRU\WKHRU\LQPROHFXODUSK\VLFV,WLVSKLORORJ\
ZKLFKKDVKHUHHQDEOHGXVWRUHDGWKHSULPLWLYHWKRXJKWVRIPDQNLQG$ODUJHQXPEHURIWKHQDPHVRI*UHHNJRGVDQG
KHURHVKDYHQRPHDQLQJLQWKH*UHHNODQJXDJHEXWWKHVHQDPHVRFFXUDOVRLQ6DQVNULWZLWKSODLQSK\VLFDOPHDQLQJV
,QWKH9HGDZHILQG=HXVRU-XSLWHU '\DXVSLWDU PHDQLQJWKHVN\DQG6DUDPHLDVRU+HUPHVPHDQLQJWKHEUHH]HRID
VXPPHUPRUQLQJ:HILQG$WKHQH $KDQD PHDQLQJWKHOLJKWRIGD\EUHDNDQGZHDUHWKXVHQDEOHGWRXQGHUVWDQGZK\
WKH*UHHNGHVFULEHGKHUDVVSUXQJIURPWKHIRUHKHDGRI=HXV7KHUHWRRZHILQG+HOHQD 6DUDPD WKHILFNOHWZLOLJKW
ZKRPWKH3DQLVRUQLJKWGHPRQVZKRVHUYHDVWKHSURWRW\SHVRIWKH+HOOHQLF3DULVVWULYHWRVHGXFHIURPKHU
DOOHJLDQFHWRWKHVRODUPRQDUFK(YHQ$FKLOOHXV $KDU\X DJDLQFRQIURQWVXVZLWKKLVFDSWLYH%ULVHLV %ULVD\D¶V
RIIVSULQJ DQGWKHILHUFH.HUEHURV &DUYDUD EDUNVRQ9HGLFJURXQGLQVWULFWFRQIRUPLW\WRWKHODZVRISKRQHWLFV>@
1RZZKHQWKH+LQGXWDONHGDERXW)DWKHU'\DXVRUWKHVOHHNNLQHRI6LYDKHWKRXJKWRIWKHSHUVRQLILHGVN\DQG
FORXGVKHKDGQRWRXWJURZQWKHSULPLWLYHPHQWDOKDELWVRIWKHUDFH%XWWKH*UHHNLQZKRVHODQJXDJHWKHVHSK\VLFDO
PHDQLQJVZHUHORVWKDGORQJEHIRUHWKH+RPHULFHSRFKFRPHWRUHJDUG=HXVDQG+HUPHV$WKHQH+HOHQD3DULVDQG
$FKLOOHXVDVPHUHSHUVRQVDQGLQPRVWFDVHVWKHRULJLQDOVRIKLVP\WKVZHUHFRPSOHWHO\IRUJRWWHQ,QWKH9HGDVWKH
7URMDQ:DULVFDUULHGRQLQWKHVN\EHWZHHQWKHEULJKWGHLWLHVDQGWKHGHPRQVRIQLJKWEXWWKH*UHHNSRHWLQIOXHQFHG
SHUKDSVE\VRPHGLPKLVWRULFDOWUDGLWLRQKDVORFDWHGWKHFRQWHVWRQWKHVKRUHRIWKH+HOOHVSRQWDQGLQKLVPLQGWKH
DFWRUVWKRXJKVXSHUKXPDQDUHVWLOOFRPSOHWHO\DQWKURSRPRUSKLF2IWKHWUXHRULJLQRIKLVHSLFVWRU\KHNQHZDVOLWWOH
DV(XKHPHURVRU/RUG%DFRQRUWKH$EEH%DQLHU
>@6RPHRIWKHVHHW\PRORJLHVDUHDWWDFNHGE\0U0DKDII\LQKLV3UROHJRPHQDWR$QFLHQW+LVWRU\S$IWHUORQJ
FRQVLGHUDWLRQ,DPVWLOOGLVSRVHGWRIROORZ0D[0XOOHULQDGRSWLQJWKHPZLWKWKHSRVVLEOHH[FHSWLRQRI$FKLOOHXV:LWK
0U0DKDII\VVXJJHVWLRQ S WKDWPDQ\RIWKH+RPHULFOHJHQGVPD\KDYHFOXVWHUHGDURXQGVRPHKLVWRULFDOEDVLV,
IXOO\DJUHHDVZLOODSSHDUIXUWKHURQIURPP\SDSHURQ³-XYHQWXV0XQGL´
$IWHUWKHVHLOOXVWUDWLRQVZHVKDOOUXQQRULVNRIEHLQJPLVXQGHUVWRRGZKHQZHGHILQHDP\WKDVLQLWVRULJLQDQ
H[SODQDWLRQE\WKHXQFLYLOL]HGPLQGRIVRPHQDWXUDOSKHQRPHQRQQRWDQDOOHJRU\QRWDQHVRWHULFV\PEROIRUWKH
LQJHQXLW\LVZDVWHGZKLFKVWULYHVWRGHWHFWLQP\WKVWKHUHPQDQWVRIDUHILQHGSULPHYDOVFLHQFHEXWDQH[SODQDWLRQ
3ULPLWLYHPHQKDGQRSURIRXQGVFLHQFHWRSHUSHWXDWHE\PHDQVRIDOOHJRU\QRUZHUHWKH\VXFKVRUU\SHGDQWVDVWRWDON
LQULGGOHVZKHQSODLQODQJXDJHZRXOGVHUYHWKHLUSXUSRVH7KHLUPLQGVZHPD\EHVXUHZRUNHGOLNHRXURZQDQG
ZKHQWKH\VSRNHRIWKHIDUGDUWLQJVXQJRGWKH\PHDQWMXVWZKDWWKH\VDLGVDYHWKDWZKHUHZHSURSRXQGDVFLHQWLILF
WKHRUHPWKH\FRQVWUXFWHGDP\WK>@$WKLQJLVVDLGWREHH[SODLQHGZKHQLWLVFODVVLILHGZLWKRWKHUWKLQJVZLWKZKLFK
ZHDUHDOUHDG\DFTXDLQWHG7KDWLVWKHRQO\NLQGRIH[SODQDWLRQRIZKLFKWKHKLJKHVWVFLHQFHLVFDSDEOH:HH[SODLQWKH
RULJLQSURJUHVVDQGHQGLQJRIDWKXQGHUVWRUPZKHQZHFODVVLI\WKHSKHQRPHQDSUHVHQWHGE\LWDORQJZLWKRWKHUPRUH
IDPLOLDUSKHQRPHQDRIYDSRUL]DWLRQDQGFRQGHQVDWLRQ%XWWKHSULPLWLYHPDQH[SODLQHGWKHVDPHWKLQJWRKLVRZQ
VDWLVIDFWLRQZKHQKHKDGFODVVLILHGLWDORQJZLWKWKHZHOONQRZQSKHQRPHQDRIKXPDQYROLWLRQE\FRQVWUXFWLQJD
WKHRU\RIDJUHDWEODFNGUDJRQSLHUFHGE\WKHXQHUULQJDUURZVRIDKHDYHQO\DUFKHU:HFRQVLGHUWKHQDWXUHRIWKHVWDUV
WRDFHUWDLQH[WHQWH[SODLQHGZKHQWKH\DUHFODVVLILHGDVVXQVEXWWKH0RKDPPHGDQFRPSLOHURIWKH³0LVKNDWXO
0D¶VDELK´ZDVFRQWHQWWRH[SODLQWKHPDVPLVVLOHVXVHIXOIRUVWRQLQJWKH'HYLO1RZDVVRRQDVWKHROG*UHHN
IRUJHWWLQJWKHVRXUFHRIKLVFRQFHSWLRQEHJDQWRWDONRIDKXPDQ2LGLSRXVVOD\LQJDOHRQLQH6SKLQ[DQGDVVRRQDVWKH
0XVVXOPDQEHJDQLIKHHYHUGLGWRWHOOKLVFKLOGUHQKRZWKH'HYLORQFHJRWDJRRGSHOWLQJZLWKJROGHQEXOOHWVWKHQ
ERWKWKHRQHDQGWKHRWKHUZHUHWDONLQJSXUHP\WKRORJ\
>@/HVIDFXOWHVTXLHQJHQGUHQWODP\WKRORJLHVRQWOHVPHPHVTXHFHOOHVTXLHQJHQGURQWODSKLORVRSKLHHWFHQ¶HVWSDV
VDQVUDLVRQTXHO¶,QGHHWOD*UHFHQRXVSUHVHQWHQWOHSKHQRPHQHGHODSOXVULFKHP\WKRORJLHDFRWHGHODSOXVSURIRQGH
PHWDSK\VLTXH³/DFRQFHSWLRQGHODPXOWLSOLFLWHGDQVO¶XQLYHUVF¶HVWOHSRO\WKHLVPHFKH]OHVSHXSOHVHQIDQWVF¶HVWOD
VFLHQFHFKH]OHVSHXSOHVDUULYHVDO¶DJHPXU²5HQDQ+LVWGHV/DQJXHV6HPLWLTXHV7RP,S
:HDUHMXVWLILHGDFFRUGLQJO\LQGLVWLQJXLVKLQJEHWZHHQDP\WKDQGDOHJHQG7KRXJKWKHZRUGVDUHHW\PRORJLFDOO\
SDUDOOHODQGWKRXJKLQRUGLQDU\GLVFRXUVHZHPD\XVHWKHPLQWHUFKDQJHDEO\\HWZKHQVWULFWDFFXUDF\LVUHTXLUHGLWLV
ZHOOWRNHHSWKHPVHSDUDWH$QGLWLVSHUKDSVQHHGOHVVVDYHIRUWKHVDNHRIFRPSOHWHQHVVWRVD\WKDWERWKDUHWREH
GLVWLQJXLVKHGIURPVWRULHVZKLFKKDYHEHHQGHVLJQHGO\IDEULFDWHG7KHGLVWLQFWLRQPD\RFFDVLRQDOO\EHVXEWOHEXWLV
XVXDOO\EURDGHQRXJK7KXVWKHVWRU\WKDW3KLOLS,,PXUGHUHGKLVZLIH(OL]DEHWKLVDPLVUHSUHVHQWDWLRQEXWWKHVWRU\
WKDWWKHVDPH(OL]DEHWKZDVFXOSDEO\HQDPRXUHGRIKHUVWHSVRQ'RQ&DUORVLVDOHJHQG7KHVWRU\WKDW4XHHQ(OHDQRU
VDYHGWKHOLIHRIKHUKXVEDQG(GZDUG,E\VXFNLQJDZRXQGPDGHLQKLVDUPE\DSRLVRQHGDUURZLVDOHJHQGEXWWKH
VWRU\WKDW+HUFXOHVNLOOHGDJUHDWUREEHU&DFXVZKRKDGVWROHQKLVFDWWOHFRQFHDOVDSK\VLFDOPHDQLQJDQGLVDP\WK
:KLOHDOHJHQGLVXVXDOO\FRQILQHGWRRQHRUWZRORFDOLWLHVDQGLVWROGRIQRWPRUHWKDQRQHRUWZRSHUVRQVLWLV
FKDUDFWHULVWLFRIDP\WKWKDWLWLVVSUHDGLQRQHIRUPRUDQRWKHURYHUDODUJHSDUWRIWKHHDUWKWKHOHDGLQJLQFLGHQWV
UHPDLQLQJFRQVWDQWZKLOHWKHQDPHVDQGRIWHQWKHPRWLYHVYDU\ZLWKHDFKORFDOLW\7KLVLVSDUWO\GXHWRWKHLPPHQVH
DQWLTXLW\RIP\WKVGDWLQJDVWKH\GRIURPDSHULRGZKHQPDQ\QDWLRQVQRZZLGHO\VHSDUDWHGKDGQRW\HWFHDVHGWR
IRUPRQHSHRSOH7KXVPDQ\HOHPHQWVRIWKHP\WKRIWKH7URMDQ:DUDUHWREHIRXQGLQWKH5LJ9HGDDQGWKHP\WKRI
6W*HRUJHDQGWKH'UDJRQLVIRXQGLQDOOWKH$U\DQQDWLRQV%XWZHPXVWQRWDOZD\VLQIHUWKDWP\WKVKDYHDFRPPRQ
GHVFHQWPHUHO\EHFDXVHWKH\UHVHPEOHHDFKRWKHU:HPXVWUHPHPEHUWKDWWKHSURFHHGLQJVRIWKHXQFXOWLYDWHGPLQG
DUHPRUHRUOHVVDOLNHLQDOOODWLWXGHVDQGWKDWWKHVDPHSKHQRPHQRQPLJKWLQYDULRXVSODFHVLQGHSHQGHQWO\JLYHULVHWR
VLPLODUVWRULHV>@7KHP\WKRI-DFNDQGWKH%HDQ6WDONLVIRXQGQRWRQO\DPRQJSHRSOHRI$U\DQGHVFHQWEXWDOVR
DPRQJWKH=XOXVRI6RXWK$IULFDDQGDJDLQDPRQJWKH$PHULFDQ,QGLDQV:KHQHYHUZHFDQWUDFHDVWRU\LQWKLVZD\
IURPRQHHQGRIWKHZRUOGWRWKHRWKHURUWKURXJKDZKROHIDPLO\RINLQGUHGQDWLRQVZHDUHSUHWW\VDIHLQDVVXPLQJ
WKDWZHDUHGHDOLQJZLWKDWUXHP\WKDQGQRWZLWKDPHUHOHJHQG
>@&DVHVFRPLQJXQGHUWKLVKHDGDUHGLVFXVVHGIXUWKHURQLQP\SDSHURQ³0\WKVRIWKH%DUEDULF:RUOG´
$SSO\LQJWKHVHFRQVLGHUDWLRQVWRWKH7HOOP\WKZHDWRQFHREWDLQDYDOLGH[SODQDWLRQRILWVRULJLQ7KHFRQFHSWLRQRI
LQIDOOLEOHVNLOOLQDUFKHU\ZKLFKXQGHUOLHVVXFKDJUHDWYDULHW\RIP\WKVDQGSRSXODUIDLU\WDOHVLVRULJLQDOO\GHULYHG
IURPWKHLQHYLWDEOHYLFWRU\RIWKHVXQRYHUKLVHQHPLHVWKHGHPRQVRIQLJKWZLQWHUDQGWHPSHVW$UURZVDQGVSHDUV
ZKLFKQHYHUPLVVWKHLUPDUNVZRUGVIURPZKRVHEORZQRDUPRXUFDQSURWHFWDUHLQYDULDEO\WKHZHDSRQVRIVRODU
GLYLQLWLHVRUKHURHV7KHVKDIWVRI%HOOHURSKRQQHYHUIDLOWRVOD\WKHEODFNGHPRQRIWKHUDLQFORXGDQGWKHEROWRI
3KRLERV&KU\VDRUGHDOVVXUHGHVWUXFWLRQWRWKHVHUSHQWRIZLQWHU2G\VVHXVZDUULQJDJDLQVWWKHLPSLRXVQLJKWKHURHV
ZKRKDYHHQGHDYRXUHGWKURXJKRXWWHQORQJ\HDUVRUKRXUVRIGDUNQHVVWRVHGXFHIURPKHUDOOHJLDQFHKLVWZLOLJKWEULGH
WKHZHDYHURIWKHQHYHUILQLVKHGZHERIYLROHWFORXGV2G\VVHXVVWULSSHGRIKLVEHJJDU¶VUDLPHQWDQGHQGRZHGZLWK
IUHVK\RXWKDQGEHDXW\E\WKHGDZQJRGGHVV$WKHQHHQJDJHVLQQRGRXEWIXOFRQIOLFWDVKHUDLVHVWKHERZZKLFKQRQH
EXWKLPVHOIFDQEHQG1RULVWKHUHOHVVYLUWXHLQWKHVSHDURI$FKLOOHXVLQWKHVZRUGVRI3HUVHXVDQG6LJXUGLQ
5RODQG¶VVWRXWEODGH'XUDQGDORULQWKHEUDQG([FDOLEXUZLWKZKLFK6LU%HGLYHUHZDVVRORDWKWRSDUW$OOWKHVHDUH
VRODUZHDSRQVDQGVRWRRDUHWKHDUURZVRI7HOODQG3DOQDWRNL(JLODQG+HPLQJUDQG:LOOLDPRI&ORXGHVOHHZKRVH
VXUQDPHSURFODLPVKLPDQLQKDELWDQWRIWKH3KDLDNLDQODQG:LOOLDP7HOOZKHWKHURI&ORXGODQGRURI$OWGRUILVWKH
ODVWUHIOHFWLRQRIWKHEHQHILFHQWGLYLQLW\RIGD\WLPHDQGVXPPHUFRQVWUDLQHGIRUDZKLOHWRREH\WKHFDSULFHRIWKH
SRZHUVRIFROGDQGGDUNQHVVDV$SROORVHUYHG/DRPHGRQDQG+HUDNOHVGLGWKHELGGLQJRI(XU\VWKHXV+LVVRODU
FKDUDFWHULVZHOOSUHVHUYHGHYHQLQWKHVHTXHORIWKH6ZLVVOHJHQGLQZKLFKKHDSSHDUVQROHVVVNLOIXODVDVWHHUVPDQ
WKDQDVDQDUFKHUDQGLQZKLFKDIWHUWUDYHUVLQJOLNH'DJRQWKHWHPSHVWXRXVVHDRIQLJKWKHOHDSVDWGD\EUHDNLQ
UHJDLQHGIUHHGRPXSRQWKHODQGDQGVWULNHVGRZQWKHRSSUHVVRUZKRKDVKHOGKLPLQERQGDJH
%XWWKHVXQWKRXJKHYHUYLFWRULRXVLQRSHQFRQWHVWZLWKKLVHQHPLHVLVQHYHUWKHOHVVQRWLQYXOQHUDEOH$WWLPHVKH
VXFFXPEVWRWUHDFKHU\LVERXQGE\WKHIURVWJLDQWVRUVODLQE\WKHGHPRQVRIGDUNQHVV7KHSRLVRQHGVKLUWRIWKH
FORXGILHQG1HVVRVLVIDWDOHYHQWRWKHPLJKW\+HUDNOHVDQGWKHSURZHVVRI6LHJIULHGDWODVWIDLOVWRVDYHKLPIURPWKH
FUDIWRI+DJHQ,Q$FKLOOHXVDQG0HOHDJURVZHVHHWKHXQKDSS\VRODUKHURGRRPHGWRWRLOIRUWKHSURILWRIRWKHUVDQGWR
EHFXWRIIE\DQXQWLPHO\GHDWK7KHPRUHIRUWXQDWH2G\VVHXVZKROLYHVWRDULSHROGDJHDQGWULXPSKVDJDLQDQG
DJDLQRYHUDOOWKHSRZHUVRIGDUNQHVVPXVWQHYHUWKHOHVV\LHOGWRWKHFUDYLQJGHVLUHWRYLVLWQHZFLWLHVDQGORRNXSRQ
QHZZRUNVRIVWUDQJHPHQXQWLODWODVWKHLVVZDOORZHGXSLQWKHZHVWHUQVHD7KDWWKHXQULYDOOHGQDYLJDWRURIWKH
FHOHVWLDORFHDQVKRXOGGLVDSSHDUEHQHDWKWKHZHVWHUQZDYHVLVDVLQWHOOLJLEOHDVLWLVWKDWWKHKRUQHG9HQXVRU$VWDUWH
VKRXOGULVHIURPWKHVHDLQWKHIDUHDVW,WLVSHUKDSVOHVVREYLRXVWKDWZLQWHUVKRXOGEHVRIUHTXHQWO\V\PEROL]HGDVD
WKRUQRUVKDUSLQVWUXPHQW$FKLOOHXVGLHVE\DQDUURZZRXQGLQWKHKHHOWKHWKLJKRI$GRQLVLVSLHUFHGE\WKHERDU¶V
WXVNZKLOH2G\VVHXVHVFDSHVZLWKDQXJO\VFDUZKLFKDIWHUZDUGVVHFXUHVKLVUHFRJQLWLRQE\KLVROGVHUYDQWWKHGDZQ
Q\PSK(XU\NOHLD6LJXUGLVVODLQE\DWKRUQDQG%DOGHUE\DVKDUSVSULJRIPLVWOHWRHDQGLQWKHP\WKRIWKH6OHHSLQJ
%HDXW\WKHHDUWKJRGGHVVVLQNVLQWRKHUORQJZLQWHUVOHHSZKHQSULFNHGE\WKHSRLQWRIWKHVSLQGOH,QKHUFRVPLF
SDODFHDOOLVORFNHGLQLF\UHSRVHQDXJKWWKULYLQJVDYHWKHLY\ZKLFKGHILHVWKHFROGXQWLOWKHNLVVRIWKHJROGHQKDLUHG
VXQJRGUHDZDNHQVOLIHDQGDFWLYLW\
7KHZLQWU\VOHHSRIQDWXUHLVV\PEROL]HGLQLQQXPHUDEOHVWRULHVRIVSHOOERXQGPDLGHQVDQGIDLUIHDWXUHG\RXWKVVDLQWV
PDUW\UVDQGKHURHV6RPHWLPHVLWLVWKHVXQVRPHWLPHVWKHHDUWKWKDWLVVXSSRVHGWRVOXPEHU$PRQJWKH$PHULFDQ
,QGLDQVWKHVXQJRG0LFKDERLVVDLGWRVOHHSWKURXJKWKHZLQWHUPRQWKVDQGDWWKHWLPHRIWKHIDOOLQJOHDYHVE\ZD\RI
FRPSRVLQJKLPVHOIIRUKLVQDSKHILOOVKLVJUHDWSLSHDQGGLYLQHO\VPRNHVWKHEOXHFORXGVJHQWO\IORDWLQJRYHUWKH
ODQGVFDSHILOOWKHDLUZLWKWKHKD]HRI,QGLDQVXPPHU,QWKH*UHHNP\WKWKHVKHSKHUG(QG\PLRQSUHVHUYHVKLV
IUHVKQHVVLQDSHUHQQLDOVOXPEHU7KH*HUPDQ6LHJIULHGSLHUFHGE\WKHWKRUQRIZLQWHULVVOHHSLQJXQWLOKHVKDOOEH
DJDLQFDOOHGIRUWKWRILJKW,Q6ZLW]HUODQGE\WKH9LHUZDOGVWDWWHUVHHWKUHH7HOOVDUHDZDLWLQJWKHKRXUZKHQWKHLU
FRXQWU\VKDOODJDLQQHHGWREHGHOLYHUHGIURPWKHRSSUHVVRU&KDUOHPDJQHLVUHSRVLQJLQWKH8QWHUVEHUJVZRUGLQKDQG
ZDLWLQJIRUWKHFRPLQJRI$QWLFKULVW2OJHU'DQVNHVLPLODUO\GUHDPVDZD\KLVWLPHLQ$YDOORQDQGLQDORIW\PRXQWDLQ
LQ7KXULQJLDWKHJUHDW(PSHURU<UHGHULF%DUEDURVVDVOXPEHUVZLWKKLVNQLJKWVDURXQGKLPXQWLOWKHWLPHFRPHVIRU
KLPWRVDOO\IRUWKDQGUDLVH*HUPDQ\WRWKHILUVWUDQNDPRQJWKHNLQJGRPVRIWKHZRUOG7KHVDPHVWRU\LVWROGRI2ODI
7U\JJYHVVRQRI'RQ6HEDVWLDQRI3RUWXJDODQGRIWKH0RRULVK.LQJ%RDEGLO7KH6HYHQ6OHHSHUVRI(SKHVXVKDYLQJ
WDNHQUHIXJHLQDFDYHIURPWKHSHUVHFXWLRQVRIWKHKHDWKHQ'HFLXVVOHSWRQHKXQGUHGDQGVL[W\IRXU\HDUVDQGDZRNH
WRILQGD&KULVWLDQHPSHURURQWKHWKURQH7KHPRQNRI+LOGHVKHLPLQWKHOHJHQGVREHDXWLIXOO\UHQGHUHGE\
/RQJIHOORZGRXEWLQJKRZZLWK*RGDWKRXVDQG\HDUVDJRFRXOGEHDV\HVWHUGD\OLVWHQHGWKUHHPLQXWHVHQWUDQFHGE\
WKHVLQJLQJRIDELUGLQWKHIRUHVWDQGIRXQGRQZDNLQJIURPKLVUHYHU\WKDWDWKRXVDQG\HDUVKDGIORZQ7RWKHVDPH
IDPLO\RIOHJHQGVEHORQJWKHQRWLRQWKDW6W-RKQLVVOHHSLQJDW(SKHVXVXQWLOWKHODVWGD\VRIWKHZRUOGWKHP\WKRIWKH
HQFKDQWHU0HUOLQVSHOOERXQGE\9LYLHQWKHVWRU\RIWKH&UHWDQSKLORVRSKHU(SLPHQLGHVZKRGR]HGDZD\ILIW\VHYHQ
\HDUVLQDFDYHDQG5LS9DQ:LQNOH¶VQDSLQWKH&DWVNLOOV>@
>@$FROOHFWLRQRIWKHVHLQWHUHVWLQJOHJHQGVPD\EHIRXQGLQ%DULQJ*RXOG¶V³&XULRXV0\WKVRIWKH0LGGOH$JHV´RI
ZKLFKZRUNWKLVSDSHUZDVRULJLQDOO\DUHYLHZ
:HPLJKWJRRQDOPRVWLQGHILQLWHO\FLWLQJKRXVHKROGWDOHVRIZRQGHUIXOVOHHSHUVEXWRQWKHSULQFLSOHRIWKHDVVRFLDWLRQ
RIRSSRVLWHVZHDUHKHUHUHPLQGHGRIVXQGU\FDVHVRIPDUYHOORXVOLIHDQGZDNHIXOQHVVLOOXVWUDWHGLQWKH:DQGHULQJ
-HZWKHGDQFHUVRI.ROEHFN-RVHSKRI$ULPDWKDHDZLWKWKH+RO\*UDLOWKH:LOG+XQWVPDQZKRWRDOOHWHUQLW\FKDVHV
WKHUHGGHHUWKH&DSWDLQRIWKH3KDQWRP6KLSWKHFODVVLF7LWKRQRVDQGWKH0DQLQWKH0RRQ
7KHOXQDUVSRWVKDYHDIIRUGHGDULFKVXEMHFWIRUWKHSOD\RIKXPDQIDQF\3OXWDUFKZURWHDWUHDWLVHRQWKHPEXWWKH
P\WKPDNHUVKDGEHHQEHIRUHKLP³(YHU\RQH´VD\V0U
%DULQJ*RXOG³NQRZVWKDWWKHPRRQLVLQKDELWHGE\DPDQZLWK
DEXQGOHRIVWLFNVRQKLVEDFNZKRKDVEHHQH[LOHGWKLWKHU
IRUPDQ\FHQWXULHVDQGZKRLVVRIDURIIWKDWKHLVEH\RQG
WKHUHDFKRIGHDWK+HKDVRQFHYLVLWHGWKLVHDUWKLIWKH
QXUVHU\UK\PHLVWREHFUHGLWHGZKHQLWDVVHUWVWKDW
µ7KH0DQLQWKH0RRQ
&DPHGRZQWRRVRRQ
$QGDVNHGKLVZD\WR1RUZLFK¶

EXWZKHWKHUKHHYHUUHDFKHGWKDWFLW\WKHVDPHDXWKRULW\GRHVQRWVWDWH´'DQWHFDOOVKLP&DLQ&KDXFHUKDVKLPSXWXS
WKHUHDVDSXQLVKPHQWIRUWKHIWDQGJLYHVKLPDWKRUQEXVKWRFDUU\6KDNHVSHDUHDOVRORDGVKLPZLWKWKHWKRUQVEXWE\
ZD\RIFRPSHQVDWLRQJLYHVKLPDGRJIRUDFRPSDQLRQ2UGLQDULO\KRZHYHUKLVRIIHQFHLVVWDWHGWRKDYHEHHQQRW
VWHDOLQJEXW6DEEDWKEUHDNLQJDQLGHDGHULYHGIURPWKH2OG7HVWDPHQW/LNHWKHPDQPHQWLRQHGLQWKH%RRNRI
1XPEHUVKHLVFDXJKWJDWKHULQJVWLFNVRQWKH6DEEDWKDQGDVDQH[DPSOHWRPDQNLQGKHLVFRQGHPQHGWRVWDQG
IRUHYHULQWKHPRRQZLWKKLVEXQGOHRQKLVEDFN,QVWHDGRIDGRJRQH*HUPDQYHUVLRQSODFHVZLWKKLPDZRPDQ
ZKRVHFULPHZDVFKXUQLQJEXWWHURQ6XQGD\6KHFDUULHVKHUEXWWHUWXEDQGWKLVEULQJVXVWR0RWKHU*RRVHDJDLQ
³-DFNDQG-LOOZHQWXSWKHKLOOWRJHWDSDLORIZDWHU
-DFNIHOOGRZQDQGEURNHKLVFURZQ
$QG-LOOFDPHWXPEOLQJDIWHU´
7KLVPD\UHDGOLNHPHUHQRQVHQVHEXWWKHUHLVDSRLQWRIYLHZIURPZKLFKLWPD\EHVDIHO\VDLGWKDWWKHUHLVYHU\OLWWOH
DEVROXWHQRQVHQVHLQWKHZRUOG7KHVWRU\RI-DFNDQG-LOOLVDYHQHUDEOHRQH,Q,FHODQGLFP\WKRORJ\ZHUHDGWKDW-DFN
DQG-LOOZHUHWZRFKLOGUHQZKRPWKHPRRQRQFHNLGQDSSHGDQGFDUULHGXSWRKHDYHQ7KH\KDGEHHQGUDZLQJZDWHULQD
EXFNHWZKLFKWKH\ZHUHFDUU\LQJE\PHDQVRIDSROHSODFHGDFURVVWKHLUVKRXOGHUVDQGLQWKLVDWWLWXGHWKH\KDYHVWRRG
WRWKHSUHVHQWGD\LQWKHPRRQ(YHQQRZWKLVH[SODQDWLRQRIWKHPRRQVSRWVLVWREHKHDUGIURPWKHPRXWKVRI6ZHGLVK
SHDVDQWV7KH\IDOODZD\RQHDIWHUWKHRWKHUDVWKHPRRQZDQHVDQGWKHLUZDWHUSDLOV\PEROL]HVWKHVXSSRVHG
FRQQHFWLRQRIWKHPRRQZLWKUDLQVWRUPV2WKHUIRUPVRIWKHP\WKRFFXULQ6DQVNULW
7KHPRRQJRGGHVVRU$SKURGLWHRIWKHDQFLHQW*HUPDQVZDVFDOOHG+RUVHORU8UVXODZKRILJXUHVLQ&KULVWLDQ
PHGLDHYDOP\WKRORJ\DVDSHUVHFXWHGVDLQWDWWHQGHGE\DWURRSRIHOHYHQWKRXVDQGYLUJLQVZKRDOOVXIIHUPDUW\UGRPDV
WKH\MRXUQH\IURP(QJODQGWR&RORJQH7KHPHDQLQJRIWKHP\WKLVREYLRXV,Q*HUPDQP\WKRORJ\(QJODQGLVWKH
3KDLDNLDQODQGRIFORXGVDQGSKDQWRPVWKHVXFFXEXVOHDYLQJKHUORYHUEHIRUHGD\EUHDNH[FXVHVKHUVHOIRQWKHSOHD
WKDW³KHUPRWKHULVFDOOLQJKHULQ(QJODQG´>@7KHFRPSDQLRQVRI8UVXODDUHWKHSXUHVWDUVZKROHDYHWKHFORXGODQG
DQGVXIIHUPDUW\UGRPDVWKH\DSSURDFKWKHUHJLRQVRIGD\,QWKH&KULVWLDQWUDGLWLRQ8UVXODLVWKHSXUH$UWHPLVEXWLQ
DFFRUGDQFHZLWKKHUDQFLHQWFKDUDFWHUVKHLVOLNHZLVHWKHVHQVXDO$SKURGLWHZKRKDXQWVWKH9HQXVEHUJDQGWKLVEULQJV
XVWRWKHVWRU\RI7DQQKDXVHU
>@6HH3URFRSLXV'H%HOOR*RWKLFR,99LOOHPDUTXH%DU]DV%UHL],$VDFKLOG,ZDVLQVWUXFWHGE\DQROG
QXUVHWKDW9DV'LHPHQ¶V/DQGLVWKHKRPHRIJKRVWVDQGGHSDUWHGVSLULWV
7KH+RUVHOEHUJRUPRXQWDLQRI9HQXVOLHVLQ7KXULQJLDEHWZHHQ(LVHQDFKDQG*RWKD+LJKXSRQLWVVORSH\DZQVD
FDYHUQWKH+RUVHOORFKRUFDYHRI9HQXVZLWKLQZKLFKLVKHDUGDPXIIOHGURDUDVRIVXEWHUUDQHDQZDWHU)URPWKLV
FDYHLQROGWLPHVWKHIULJKWHQHGLQKDELWDQWVRIWKHQHLJKERXULQJYDOOH\ZRXOGKHDUDWQLJKWZLOGPRDQVDQGFULHV
LVVXLQJPLQJOHGZLWKSHDOVRIGHPRQOLNHODXJKWHU+HUHLWZDVEHOLHYHGWKDW9HQXVKHOGKHUFRXUW³DQGWKHUHZHUHQRW
DIHZZKRGHFODUHGWKDWWKH\KDGVHHQIDLUIRUPVRIIHPDOHEHDXW\EHFNRQLQJWKHPIURPWKHPRXWKRIWKHFKDVP´>@
7DQQKDXVHUZDVD)UDQNLVKNQLJKWDQGIDPRXVPLQQHVLQJHUZKRWUDYHOOLQJDWWZLOLJKWSDVWWKH+RUVHOEHUJ³VDZD
ZKLWHJOLPPHULQJILJXUHRIPDWFKOHVVEHDXW\VWDQGLQJEHIRUHKLPDQGEHFNRQLQJKLPWRKHU´/HDYLQJKLVKRUVHKH
ZHQWXSWRPHHWKHUZKRPKHNQHZWREHQRQHRWKHUWKDQ9HQXV+HGHVFHQGHGWRKHUSDODFHLQWKHKHDUWRIWKH
PRXQWDLQDQGWKHUHSDVVHGVHYHQ\HDUVLQFDUHOHVVUHYHOU\7KHQVWULFNHQZLWKUHPRUVHDQG\HDUQLQJIRUDQRWKHU
JOLPSVHRIWKHSXUHOLJKWRIGD\KHFDOOHGLQDJRQ\XSRQWKH9LUJLQ0RWKHUZKRWRRNFRPSDVVLRQRQKLPDQGUHOHDVHG
KLP+HVRXJKWDYLOODJHFKXUFKDQGWRSULHVWDIWHUSULHVWFRQIHVVHGKLVVLQZLWKRXWREWDLQLQJDEVROXWLRQXQWLOILQDOO\
KHKDGUHFRXUVHWRWKH3RSH%XWWKHKRO\IDWKHUKRUULILHGDWWKHHQRUPLW\RIKLVPLVGRLQJGHFODUHGWKDWJXLOWVXFKDV
KLVFRXOGQHYHUEHUHPLWWHGVRRQHUVKRXOGWKHVWDIILQKLVKDQGJURZJUHHQDQGEORVVRP³7KHQ7DQQKDXVHUIXOORI
GHVSDLUDQGZLWKKLVVRXOGDUNHQHGZHQWDZD\DQGUHWXUQHGWRWKHRQO\DV\OXPRSHQWRKLPWKH9HQXVEHUJ%XWOR
WKUHHGD\VDIWHUKHKDGJRQH3RSH8UEDQGLVFRYHUHGWKDWKLVSDVWRUDOVWDIIKDGSXWIRUWKEXGVDQGKDGEXUVWLQWRIORZHU
7KHQKHVHQWPHVVHQJHUVDIWHU7DQQKDXVHUDQGWKH\UHDFKHGWKH+RUVHOYDOHWRKHDUWKDWDZD\ZRUQPDQZLWKKDJJDUG
EURZDQGERZHGKHDGKDGMXVWHQWHUHGWKH+RUVHOORFK6LQFHWKHQ7DQQKDXVHUKDVQRWEHHQVHHQ´ S
>@%DULQJ*RXOG&XULRXV0\WKV9RO,S
$V0U%DULQJ*RXOGULJKWO\REVHUYHVWKLVVDGOHJHQGLQLWV&KULVWLDQL]HGIRUPLVGRXEWOHVVGHVFULSWLYHRIWKHVWUXJJOH
EHWZHHQWKHQHZDQGWKHROGIDLWKV7KHNQLJKWO\7DQQKDXVHUVDWLDWHGZLWKSDJDQVHQVXDOLW\WXUQVWR&KULVWLDQLW\IRU
UHOLHIEXWUHSHOOHGE\WKHK\SRFULV\SULGHDQGODFNRIV\PSDWK\RILWVPLQLVWHUVJLYHVXSLQGHVSDLUDQGUHWXUQVWR
GURZQKLVDQ[LHWLHVLQKLVROGGHEDXFKHU\
%XWWKLVLVQRWWKHSULPLWLYHIRUPRIWKHP\WKZKLFKUHFXUVLQWKHIRONORUHRIHYHU\SHRSOHRI$U\DQGHVFHQW:KR
LQGHHGFDQUHDGLWZLWKRXWEHLQJDWRQFHUHPLQGHGRI7KRPDVRI(UFHOGRXQH RU+RUVHOKLOO HQWUDQFHGE\WKH
VRUFHUHVVRIWKH(LOGHQRIWKHQLJKWO\YLVLWVRI1XPDWRWKHJURYHRIWKHQ\PSK(JHULDRI2G\VVHXVKHOGFDSWLYHE\WKH
/DG\.DO\SVRDQGODVWEXWQRWOHDVWRIWKHGHOLJKWIXO$UDELDQWDOHRI3ULQFH$KPHGDQGWKH3HUL%DQRX"2QKLV
ZHVWZDUGMRXUQH\2G\VVHXVLVHQVQDUHGDQGNHSWLQWHPSRUDU\ERQGDJHE\WKHDPRURXVQ\PSKRIGDUNQHVV.DO\SVR
NDOQSWZWRYHLORUFRYHU 6RWKH]RQHRIWKHPRRQJRGGHVV$SKURGLWHLQYHLJOHVDOOVHHLQJ=HXVWRWUHDFKHURXV
VOXPEHURQ0RXQW,GDDQGE\DVLPLODUVRUFHU\7DVVR¶VJUHDWKHURLVOXOOHGLQXQVHHPO\LGOHQHVVLQ$UPLGD¶VJROGHQ
SDUDGLVHDWWKHZHVWHUQYHUJHRIWKHZRUOG7KHGLVDSSHDUDQFHRI7DQQKDXVHUEHKLQGWKHPRRQOLWFOLIIOXUHGE\9HQXV
8UVXODWKHSDOHJRGGHVVRIQLJKWLVDSUHFLVHO\SDUDOOHOFLUFXPVWDQFH
%XWVRODUDQGOXQDUSKHQRPHQDDUHE\QRPHDQVWKHRQO\VRXUFHV
RISRSXODUP\WKRORJ\2SSRVLWHP\ZULWLQJWDEOHKDQJVDTXDLQW
*HUPDQSLFWXUHLOOXVWUDWLQJ*RHWKH¶VEDOODGRIWKH(UONLQJ
LQZKLFKWKHZKROHZLOGSDWKRVRIWKHVWRU\LVFRPSUHVVHGLQWR
RQHVXSUHPHPRPHQWZHVHHWKHIHDUIXOKDOIJOLGLQJUXVKRI
WKH(UONLQJKLVORQJVSHFWUDODUPVRXWVWUHWFKHGWRJUDVSWKH
FKLOGWKHIUDQWLFJDOORSRIWKHKRUVHWKHDODUPHGIDWKHU
FODVSLQJKLVGDUOLQJWRKLVERVRPLQFRQYXOVLYHHPEUDFHWKH
VLUHQOLNHHOYHVKRYHULQJRYHUKHDGWROXUHWKHOLWWOHVRXO
ZLWKWKHLUZHLUGKDUSV7KHUHFDQEHQREHWWHULOOXVWUDWLRQ
WKDQLVIXUQLVKHGE\WKLVWHUULEOHVFHQHRIWKHPDJLFSRZHURI
P\WKRORJ\WRLQYHVWWKHVLPSOHVWSK\VLFDOSKHQRPHQDZLWKWKH
PRVWLQWHQVHKXPDQLQWHUHVWIRUWKHWUXHVLJQLILFDQFHRIWKH
ZKROHSLFWXUHLVFRQWDLQHGLQWKHIDWKHU¶VDGGUHVVWRKLV
FKLOG
³6HLUXKLJEOHLEHUXKLJPHLQ.LQG
,QGXUUHQ%ODWWHUQVDXVHOWGHU:LQG´
7KHVWRU\RIWKH3LSHURI+DPHOLQZHOONQRZQLQWKHYHUVLRQRI5REHUW%URZQLQJOHDGVWRWKHVDPHFRQFOXVLRQ,Q
WKHJRRGSHRSOHRI+DPHOLQFRXOGREWDLQQRUHVWQLJKWRUGD\E\UHDVRQRIWKHGLUHIXOKRVWRIUDWVZKLFKLQIHVWHG
WKHLUWRZQ2QHGD\FDPHDVWUDQJHPDQLQDEXQWLQJVXLWDQGRIIHUHGIRUILYHKXQGUHGJXLOGHUVWRULGWKHWRZQRIWKH
YHUPLQ7KHSHRSOHDJUHHGZKHUHXSRQWKHPDQWRRNRXWDSLSHDQGSLSHGDQGLQVWDQWO\DOOWKHUDWVLQWRZQLQDQDUP\
ZKLFKEODFNHQHGWKHIDFHRIWKHHDUWKFDPHIRUWKIURPWKHLUKDXQWVDQGIROORZHGWKHSLSHUXQWLOKHSLSHGWKHPWRWKH
ULYHU:HVHUZKHUHWKH\DOOVMXPSHGLQDQGZHUHGURZQHG%XWDVVRRQDVWKHWRUPHQWZDVJRQHWKHWRZQVIRONUHIXVHG
WRSD\WKHSLSHURQWKHJURXQGWKDWKHZDVHYLGHQWO\DZL]DUG+HZHQWDZD\YRZLQJYHQJHDQFHDQGRQ6W-RKQ¶VGD\
UHDSSHDUHGDQGSXWWLQJKLVSLSHWRKLVPRXWKEOHZDGLIIHUHQWDLU:KHUHDWDOOWKHOLWWOHSOXPSURV\FKHHNHGJROGHQ
KDLUHGFKLOGUHQFDPHPHUULO\UXQQLQJDIWHUKLPWKHLUSDUHQWVVWDQGLQJDJKDVWQRWNQRZLQJZKDWWRGRZKLOHKHOHG
WKHPXSDKLOOLQWKHQHLJKERXUKRRG$GRRURSHQHGLQWKHPRXQWDLQVLGHWKURXJKZKLFKKHOHGWKHPLQDQGWKH\QHYHU
ZHUHVHHQDJDLQVDYHRQHODPHER\ZKRKREEOHGQRWIDVWHQRXJKWRJHWLQEHIRUHWKHGRRUVKXWDQGZKRODPHQWHGIRU
WKHUHVWRIKLVOLIHWKDWKHKDGQRWEHHQDEOHWRVKDUHWKHUDUHOXFNRIKLVFRPUDGHV,QWKHVWUHHWWKURXJKZKLFKWKLV
SURFHVVLRQSDVVHGQRPXVLFZDVHYHUDIWHUZDUGVDOORZHGWREHSOD\HG)RUDORQJWLPHWKHWRZQGDWHGLWVSXEOLF
GRFXPHQWVIURPWKLVIHDUIXOFDODPLW\DQGPDQ\DXWKRULWLHVKDYHWUHDWHGLWDVDQKLVWRULFDOHYHQW>@6LPLODUVWRULHVDUH
WROGRIRWKHUWRZQVLQ*HUPDQ\DQGVWUDQJHWRVD\LQUHPRWH$E\VVLQLDDOVR:HVOH\DQSHDVDQWVLQ(QJODQGEHOLHYH
WKDWDQJHOVSLSHWRFKLOGUHQZKRDUHDERXWWRGLHDQGLQ6FDQGLQDYLD\RXWKVDUHVDLGWRKDYHEHHQHQWLFHGDZD\E\WKH
VRQJVRIHOIPDLGHQV,Q*UHHFHWKHVLUHQVE\WKHLUPDJLFOD\DOOXUHGYR\DJHUVWRGHVWUXFWLRQDQG2USKHXVFDXVHGWKH
WUHHVDQGGXPEEHDVWVWRIROORZKLP+HUHZHUHDFKWKHH[SODQDWLRQ)RU2USKHXVLVWKHZLQGVLJKLQJWKURXJKXQWROG
DFUHVRISLQHIRUHVW³7KHSLSHULVQRRWKHUWKDQWKHZLQGDQGWKHDQFLHQWVKHOGWKDWLQWKHZLQGZHUHWKHVRXOVRIWKH
GHDG´7RWKLVGD\WKH(QJOLVKSHDVDQWU\EHOLHYHWKDWWKH\KHDUWKHZDLORIWKHVSLULWVRIXQEDSWL]HGFKLOGUHQDVWKHJDOH
VZHHSVSDVWWKHLUFRWWDJHGRRUV7KH*UHHN+HUPHVUHVXOWHGIURPWKHIXVLRQRIWZRGHLWLHV+HLVWKHVXQDQGDOVRWKH
ZLQGDQGLQWKHODWWHUFDSDFLW\KHEHDUVDZD\WKHVRXOVRIWKHGHDG6RWKH1RUVH2GLQZKROLNH+HUPHVILOOILOVD
GRXEOHIXQFWLRQLVVXSSRVHGWRUXVKDWQLJKWRYHUWKHWUHHWRSV³DFFRPSDQLHGE\WKHVFXGGLQJWUDLQRIEUDYHPHQ¶V
VSLULWV´$QGUHDGHUVRIUHFHQW)UHQFKOLWHUDWXUHFDQQRWIDLOWRUHPHPEHU(URNPDQQ&KDWULDQ¶VWHUULEOHVWRU\RIWKHZLOG
KXQWVPDQ9LWWLNDEDQGKRZKHVSHGWKURXJKWKHIRUHVWFDUU\LQJDZD\D\RXQJJLUO¶VVRXO
>@+HQFHSHUKDSVWKHDGDJH³$OZD\VUHPHPEHUWRSD\WKHSLSHU´
7KXVDV7DQQKDXVHULVWKH1RUWKHUQ8O\VVHVVRLV*RHWKH¶V(UONLQJQRQHRWKHUWKDQWKH3LSHURI+DPHOLQ$QGWKH
SLSHULQWXUQLVWKHFODVVLF+HUPHVRU2USKHXVWKHFRXQWHUSDUWRIWKH)LQQLVK:DLQDPRLQHQDQGWKH6DQVNULW
*XQDGK\D+LVZRQGHUIXOSLSHLVWKHKRUQRI2EHURQWKHO\UHRI$SROOR ZKROLNHWKHSLSHUZDVDUDWNLOOHU WKHKDUS
VWROHQE\-DFNZKHQKHFOLPEHGWKHEHDQVWDONWRWKHRJUH¶VFDVWOH>@$QGWKHIDWKHULQ*RHWKH¶VEDOODGLVQRPRUH
WKDQULJKWZKHQKHDVVXUHVKLVFKLOGWKDWWKHVLUHQYRLFHZKLFKWHPSWVKLPLVEXWWKHUXVWOHRIWKHZLQGDPRQJWKHGULHG
OHDYHVIRUIURPVXFKDVLPSOHFODVVRISKHQRPHQDDURVHWKLVHQWLUHIDPLO\RIFKDUPLQJOHJHQGV
>@$QGLWUHDSSHDUVDVWKHP\VWHULRXVO\UHRIWKH*DHOLF
PXVLFLDQZKR
³&RXOGKDUSDILVKRXWR¶WKHZDWHU
2UEOXLGRXWRIDVWDQH
2UPLONRXWRIDPDLGHQ¶VEUHDVW
7KDWEDLUQVKDGQHYHUQDQH´

%XWZK\GRHVWKHSLSHUZKRLVDOHDGHURIVRXOV
3V\FKRSRPSRV DOVRGUDZUDWVDIWHUKLP",QDQVZHULQJWKLVZHVKDOOKDYHRFFDVLRQWRQRWHWKDWWKHDQFLHQWVE\QR
PHDQVVKDUHGWKDWFXULRXVSUHMXGLFHDJDLQVWWKHEUXWHFUHDWLRQZKLFKLVLQGXOJHGLQE\PRGHUQDQWL'DUZLQLDQV,Q
PDQ\FRXQWULHVUDWVDQGPLFHKDYHEHHQUHJDUGHGDVVDFUHGDQLPDOVEXWLQ*HUPDQ\WKH\ZHUHWKRXJKWWRUHSUHVHQWWKH
KXPDQVRXO2QHVWRU\RXWRIDKXQGUHGPXVWVXIILFHWRLOOXVWUDWHWKLV³,Q7KXULQJLDDW6DDOIHOGDVHUYDQWJLUOIHOO
DVOHHSZKLOVWKHUFRPSDQLRQVZHUHVKHOOLQJQXWV7KH\REVHUYHGDOLWWOHUHGPRXVHFUHHSIURPKHUPRXWKDQGUXQRXWRI
WKHZLQGRZ2QHRIWKHIHOORZVSUHVHQWVKRRNWKHVOHHSHUEXWFRXOGQRWZDNHKHUVRKHPRYHGKHUWRDQRWKHUSODFH
3UHVHQWO\WKHPRXVHUDQEDFNWRWKHIRUPHUSODFHDQGGDVKHGDERXWVHHNLQJWKHJLUOQRWILQGLQJKHULWYDQLVKHGDWWKH
VDPHPRPHQWWKHJLUOGLHG´>@7KLVFRPSOHWHVWKHH[SODQDWLRQRIWKHSLSHUDQGLWDOVRIXUQLVKHVWKHNH\WRWKH
KRUULEOHVWRU\RI%LVKRS+DWWR
>@%DULQJ*RXOG&XULRXV0\WKV9RO,,S
7KLVZLFNHGSUHODWHOLYHGRQWKHEDQNRIWKH5KLQHLQWKHPLGGOHRIZKLFKVWUHDPKHSRVVHVVHGDWRZHUQRZSRLQWHG
RXWWRWUDYHOOHUVDVWKH0RXVH7RZHU,QWKH\HDUWKHUHZDVDGUHDGIXOIDPLQHDQGSHRSOHFDPHIURPIDUDQGQHDU
FUDYLQJVXVWHQDQFHRXWRIWKH%LVKRS¶VDPSOHDQGZHOOILOOHGJUDQDULHV:HOOKHWROGWKHPDOOWRJRLQWRWKHEDUQDQG
ZKHQWKH\KDGJRWLQWKHUHDVPDQ\DVFRXOGVWDQGKHVHWILUHWRWKHEDUQDQGEXUQWWKHPDOOXSDQGZHQWKRPHWRHDWD
PHUU\VXSSHU%XWZKHQKHDURVHQH[WPRUQLQJKHKHDUGWKDWDQDUP\RIUDWVKDGHDWHQDOOWKHFRUQLQKLVJUDQDULHVDQG
ZDVQRZDGYDQFLQJWRVWRUPWKHSDODFH/RRNLQJIURPKLVZLQGRZKHVDZWKHURDGVDQGILHOGVGDUNZLWKWKHPDVWKH\
FDPHZLWKIHOOSXUSRVHVWUDLJKWWRZDUGKLVPDQVLRQ,QIUHQ]LHGWHUURUKHWRRNKLVERDWDQGURZHGRXWWRWKHWRZHULQWKH
ULYHU%XWLWZDVRIQRXVHGRZQLQWRWKHZDWHUPDUFKHGWKHUDWVDQGVZDPDFURVVDQGVFDOHGWKHZDOOVDQGJQDZHG
WKURXJKWKHVWRQHVDQGFDPHVZDUPLQJLQDERXWWKHVKULHNLQJ%LVKRSDQGDWHKLPXSIOHVKERQHVDQGDOO1RZ
EHDULQJLQPLQGZKDWZDVVDLGDERYHWKHUHFDQEHQRGRXEWWKDWWKHVHUDWVZHUHWKHVRXOVRIWKRVHZKRPWKH%LVKRS
KDGPXUGHUHG7KHUHDUHPDQ\YHUVLRQVRIWKHVWRU\LQGLIIHUHQW7HXWRQLFFRXQWULHVDQGLQVRPHRIWKHPWKHDYHQJLQJ
UDWVRUPLFHLVVXHGLUHFWO\E\DVWUDQJHPHWDPRUSKRVLVIURPWKHFRUSVHVRIWKHYLFWLPV6W*HUWUXGHPRUHRYHUWKH
KHDWKHQ+ROGDZDVV\PEROL]HGDVDPRXVHDQGZDVVDLG*ROHDGDQDUP\RIPLFHVKHZDVWKHUHFHLYHURIFKLOGUHQ¶V
VRXOV2GLQDOVRLQKLVFKDUDFWHURID3V\FKRSRPSRVZDVIROORZHGE\DKRVWRIUDWV>@
>@3HUKDSVZHPD\WUDFHEDFNWRWKLVVRXUFHWKHIUDQWLFWHUURUZKLFK,ULVKVHUYDQWJLUOVRIWHQPDQLIHVWDWVLJKWRID
PRXVH
$VWKHVRXOVRIWKHGHSDUWHGDUHV\PEROL]HGDVUDWVVRLVWKHSV\FKRSRPSKLPVHOIRIWHQILJXUHGDVDGRJ6DUDPHLDVWKH
9HGLFFRXQWHUSDUWRI+HUPHVDQG2GLQVRPHWLPHVDSSHDUVLQYHVWHGZLWKFDQLQHDWWULEXWHVDQGFRXQWOHVVRWKHU
H[DPSOHVJRWRVKRZWKDWE\WKHHDUO\$U\DQPLQGWKHKRZOLQJZLQGZDVFRQFHLYHGDVDJUHDWGRJRUZROI$VWKH
IHDUIXOEHDVWZDVKHDUGVSHHGLQJE\WKHZLQGRZVRURYHUWKHKRXVHWRSWKHLQPDWHVWUHPEOHGIRUQRQHNQHZEXWKLV
RZQVRXOPLJKWIRUWKZLWKEHUHTXLUHGRIKLP+HQFHWRWKLVGD\DPRQJLJQRUDQWSHRSOHWKHKRZOLQJRIDGRJXQGHU
WKHZLQGRZLVVXSSRVHGWRSRUWHQGDGHDWKLQWKHIDPLO\,WLVWKHIOHHWJUH\KRXQGRI+HUPHVFRPHWRHVFRUWWKHVRXOWR
WKHULYHU6W\[>@
>@,Q3HUVLDDGRJLVEURXJKWWRWKHEHGVLGHRIWKHSHUVRQZKRLVG\LQJLQRUGHUWKDWWKHVRXOPD\EHVXUHRIDSURPSW
HVFRUW7KHVDPHFXVWRPH[LVWVLQ,QGLD%UHDO+HUFXOHHW&DFXVS
%XWWKHZLQGJRGLVQRWDOZD\VVRWHUULEOH1RWKLQJFDQEHPRUHWUDQVSDUHQWWKDQWKHSKUDVHRORJ\RIWKH+RPHULF
+\PQLQZKLFK+HUPHVLVGHVFULEHGDVDFTXLULQJWKHVWUHQJWKRIDJLDQWZKLOH\HWDEDEHLQWKHFUDGOHDVVDOO\LQJRXW
DQGVWHDOLQJWKHFDWWOH FORXGV RI$SROORDQGGULYLQJWKHPKHOWHUVNHOWHULQYDULRXVGLUHFWLRQVWKHQDVFUDZOLQJ
WKURXJKWKHNH\KROHDQGZLWKDPRFNLQJODXJKVKULQNLQJLQWRKLVFUDGOH+HLVWKH0DVWHU7KLHIZKRFDQVWHDOWKH
EXUJRPDVWHU¶VKRUVHIURPXQGHUKLPDQGKLVZLIH¶VPDQWOHIURPRIIKHUEDFNWKHSURWRW\SHQRWRQO\RIWKHFUDIW\
DUFKLWHFWRI5KDPSVLQLWRVEXWHYHQRIWKHXQJUDWHIXOVODYHZKRUREV6DQFKRRIKLVPXOHLQWKH6LHUUD0RUHQD+H
IXUQLVKHVLQSDUWWKHFRQFHSWLRQVRI%RRWVDQG5H\QDUGKHLVWKHSURWRW\SHRI3DXO3U\DQGSHHSLQJ7RPRI&RYHQWU\
DQGLQYLUWXHRIKLVDELOLW\WRFRQWUDFWRUH[SDQGKLPVHOIDWSOHDVXUHKHLVERWKWKH'HYLOLQWKH1RUVH7DOH>@ZKRP
WKHODGSHUVXDGHVWRHQWHUDZDOQXWDQGWKH$UDELDQ(IUHHWZKRPWKHILVKHUPDQUHOHDVHVIURPWKHERWWOH
>@7KH'HYLOZKRLVSURYHUELDOO\³DFWLYHLQDJDOHRIZLQG´LVQRQHRWKHUWKDQ+HUPHV
7KHYHU\LQWHUHVWLQJVHULHVRIP\WKVDQGSRSXODUVXSHUVWLWLRQVVXJJHVWHGE\WKHVWRUPFORXGDQGWKHOLJKWQLQJPXVWEH
UHVHUYHGIRUDIXWXUHRFFDVLRQ:KHQFDUHIXOO\H[DPLQHGWKH\ZLOOULFKO\LOOXVWUDWHWKHFRQFOXVLRQZKLFKLVWKHUHVXOWRI
WKHSUHVHQWLQTXLU\WKDWWKHPDUYHOORXVWDOHVDQGTXDLQWVXSHUVWLWLRQVFXUUHQWLQHYHU\$U\DQKRXVHKROGKDYHDFRPPRQ
RULJLQZLWKWKHFODVVLFOHJHQGVRIJRGVDQGKHURHVZKLFKIRUPHUO\ZHUHDORQHWKRXJKWZRUWK\RIWKHVWXGHQW¶VVHULRXV
DWWHQWLRQ7KHVHVWRULHV²VRPHRIWKHPIDPLOLDUWRXVLQLQIDQF\RWKHUVWKHGHOLJKWRIRXUPDWXUHU\HDUV²FRQVWLWXWHWKH
GHEULVRUDOOXYLXPEURXJKWGRZQE\WKHVWUHDPRIWUDGLWLRQIURPWKHGLVWDQWKLJKODQGVRIDQFLHQWP\WKRORJ\
6HSWHPEHU

,,7+('(6&(172)),5(
,1WKHFRXUVHRIP\ODVWVXPPHU¶VYDFDWLRQZKLFKZDVVSHQWDWDVPDOOLQODQGYLOODJH,FDPHXSRQDQXQH[SHFWHG
LOOXVWUDWLRQRIWKHWHQDFLW\ZLWKZKLFKFRQFHSWLRQVGHVFHQGHGIURPSUHKLVWRULFDQWLTXLW\KDYHQRZDQGWKHQNHSWWKHLU
KROGXSRQOLIH:KLOHVLWWLQJRQHHYHQLQJXQGHUWKHWUHHVE\WKHURDGVLGHP\DWWHQWLRQZDVFDOOHGWRWKHXQXVXDO
FRQGXFWRIKDOIDGR]HQPHQDQGER\VZKRZHUHVWDQGLQJRSSRVLWH$QHOGHUO\PDQZDVPRYLQJVORZO\XSDQGGRZQ
WKHURDGKROGLQJZLWKERWKKDQGVDIRUNHGWZLJRIKD]HOVKDSHGOLNHWKHOHWWHU<LQYHUWHG:LWKKLVSDOPVWXUQHG
XSZDUGKHKHOGLQHDFKKDQGDEUDQFKRIWKHWZLJLQVXFKDZD\WKDWWKHVKDQNSRLQWHGXSZDUGEXWHYHU\IHZ
PRPHQWVDVKHKDOWHGRYHUDFHUWDLQVSRWWKHWZLJZRXOGJUDGXDOO\EHQGGRZQZDUGVXQWLOLWKDGDVVXPHGWKHOLNHQHVV
RID<LQLWVQDWXUDOSRVLWLRQZKHUHLWZRXOGUHPDLQSRLQWLQJWRVRPHWKLQJLQWKHJURXQGEHQHDWK2QHE\RQHWKH
E\VWDQGHUVSURFHHGHGWRWU\WKHH[SHULPHQWEXWZLWKQRYDULDWLRQLQWKHUHVXOW6RPHWKLQJLQWKHJURXQGVHHPHGWR
IDVFLQDWHWKHELWRIKD]HOIRULWFRXOGQRWSDVVRYHUWKDWVSRWZLWKRXWEHQGLQJGRZQDQGSRLQWLQJWRLW
0\WKRXJKWVUHYHUWHGDWRQFHWR-DFTXHV$\PDUDQG
'RXVWHUVZLYHODV,SHUFHLYHGWKDWWKHVHPHQZHUHHQJDJHGLQVRUFHU\'XULQJWKHORQJGURXJKWPRUHWKDQKDOIWKHZHOOV
LQWKHYLOODJHKDGEHFRPHGU\DQGKHUHZDVDQDWWHPSWWRPDNHJRRGWKHORVVE\WKHDLGRIWKHJRG7KRU7KHVHPHQ
ZHUHVHHNLQJZDWHUZLWKDGLYLQLQJURG+HUHDOLYHEHIRUHP\H\HVZDVDVXSHUVWLWLRXVREVHUYDQFHZKLFK,KDG
VXSSRVHGORQJVLQFHGHDGDQGIRUJRWWHQE\DOOPHQH[FHSWVWXGHQWVLQWHUHVWHGLQP\WKRORJ\
$V,FURVVHGWKHURDGWRWDNHSDUWLQWKHFHUHPRQ\DIDUPHU¶V
ER\FDPHXSVWRXWO\DIILUPLQJKLVLQFUHGXOLW\
DQGRIIHULQJWRVKRZWKHFRPSDQ\KRZKHFRXOGFDUU\WKHURGPRWLRQOHVVDFURVVWKHFKDUPHGVSRW%XWZKHQKHFDPH
WRWDNHWKHZHLUGWZLJKHWUHPEOHGZLWKDQLOOGHILQHGIHHOLQJRILQVHFXULW\DVWRWKHVRXQGQHVVRIKLVFRQFOXVLRQVDQG
ZKHQKHVWRRGRYHUWKHVXSSRVHGULYXOHWWKHURGEHQWLQVSLWHRIKLPDVZDVQRWVRYHU\VWUDQJH)RUZLWKDOOKLV
YDJXHVFHSWLFLVPWKHKRQHVWODGKDGQRWDQGFRXOGQRWEHVXSSRVHGWRKDYHWKHIRLVFLHQWLILTXHRIZKLFK/LWWUH
VSHDNV>@
>@³,OIDXWTXHODFRHXUGHYLHQQHDQFLHQSDUPLOHVDQHLHQQHVFKRVHVHWODSOHQLWXGHGHO¶KLVWRLUHQHVHGHYRLOHTX¶D
FHOXLTXLGHVFHQGDLQVLGLVSRVHGDQVOHSDVVH0DLVLOIDXWTXHO¶HVSULWGHPHXUHPRGHUQHHWQ¶RXEOLHMDPDLVTX¶LOQ¶\D
SRXUOXLG¶DXWUHIRLTXHODIRLVFLHQWLILTXH¶²/,7756
+HUHXSRQ,UHTXHVWHGOHDYHWRWU\WKHURGEXWVRPHWKLQJLQP\PDQQHUVHHPHGDWRQFHWRH[FLWHWKHVXVSLFLRQDQG
VFRUQRIWKHVRUFHUHU³<HVWDNHLW´VDLGKHZLWKXQFDOOHGIRUYHKHPHQFH³EXW\RXFDQ¶WVWRSLWWKHUH¶VZDWHUEHORZ
KHUHDQG\RXFDQ¶WKHOSLWVEHQGLQJLI\RXEUHDN\RXUEDFNWU\LQJWRKROGLW´6RKHJDYHPHWKHWZLJDQGDZDLWHG
ZLWKDVPLOHZKLFKZDVPHDQWWRH[SUHVVZLWKHULQJVDUFDVPWKHGLVFRPILWXUHRIWKHVXSSRVHGVFRIIHU%XWZKHQ,
SURFHHGHGWRZDONIRXURUILYHWLPHVDFURVVWKHP\VWHULRXVSODFHWKHURGSRLQWLQJVWHDGIDVWO\WRZDUGWKH]HQLWKDOOWKH
ZKLOHRXUIULHQGEHFDPHJUDYHDQGEHJDQWRSKLORVRSKL]H³:HOO´VDLGKH³\RXVHH\RXUWHPSHUDPHQWLVSHFXOLDUWKH
FRQGLWLRQVDLQ¶WIDYRXUDEOHLQ\RXUFDVHWKHUHDUHVRPHSHRSOHZKRQHYHUFDQZRUNWKHVHWKLQJV%XWWKHUH¶VZDWHU
EHORZKHUHIRUDOOWKDWDV\RX¶OOILQGLI\RXGLJIRULWWKHUH¶VQRWKLQJOLNHDKD]HOURGIRUILQGLQJRXWZDWHU´
9HU\WUXHWKHUHDUHVRPHSHUVRQVZKRQHYHUFDQPDNHVXFKWKLQJVZRUNZKRVRPHKRZDOZD\VHQFRXQWHU
³XQIDYRXUDEOHFRQGLWLRQV´ZKHQWKH\ZLVKWRWHVWWKHPDUYHOORXVSRZHUVRIDFODLUYR\DQWZKRQHYHUFDQPDNH
³3ODQFKHWWH´PRYHLQFRQIRUPLW\WRWKHUHTXLUHPHQWVRIDQ\NQRZQDOSKDEHWZKRQHYHUVHHJKRVWVDQGQHYHUKDYH
³SUHVHQWLPHQWV´VDYHVXFKDVDUHREYLRXVO\GXHWRDVVRFLDWLRQRILGHDV7KHLOOVXFFHVVRIWKHVHSHUVRQVLVFRPPRQO\
DVFULEHGWRWKHLUODFNRIIDLWKEXWLQWKHPDMRULW\RIFDVHVLWPLJKWEHPRUHWUXO\UHIHUUHGWRWKHVWUHQJWKRIWKHLUIDLWK
IDLWKLQWKHFRQVWDQF\RIQDWXUHDQGLQWKHDGHTXDF\RIRUGLQDU\KXPDQH[SHULHQFHDVLQWHUSUHWHGE\VFLHQFH>@/DIRL
VFLHQWLILTXHLVDQH[FHOOHQWSUHYHQWLYHDJDLQVWWKDWREVFXUHWKRXJKQRWXQFRPPRQNLQGRIVHOIGHFHSWLRQZKLFK
HQDEOHVZRRGHQWULSRGVWRZULWHDQGWDEOHVWRWLSDQGKD]HOWZLJVWRWZLVWXSVLGHGRZQZLWKRXWWKHFRQVFLRXV
LQWHUYHQWLRQRIWKHSHUIRUPHU,WZDVWKLVNLQGRIIDLWKQRGRXEWZKLFKFDXVHGWKHGLVFRPILWXUHRI-DFTXHV$\PDURQ
KLVYLVLWWR3DULV>@DQGZKLFKKDVLQODWH\HDUVSUHYHQWHGSHUVRQVIURPREWDLQLQJWKHKDQGVRPHSUL]HRIIHUHGE\WKH
)UHQFK$FDGHP\IRUWKHILUVWDXWKHQWLFFDVHRIFODLUYR\DQFH
>@)RUDQDGPLUDEOHH[DPSOHRIVFLHQWLILFVHOIDQDO\VLVWUDFLQJRQHRIWKHVHLOOXVLRQVWRLWVSV\FKRORJLFDOVRXUFHVVHH
WKHDFFRXQWRI'U/D]DUXVLQ7DLQH'HO¶,QWHOOLJHQFH9RO,SS
>@6HHWKHVWRU\RI$\PDULQ%DULQJ*RXOG&XULRXV0\WKV9RO,SS7KHOHDUQHGDXWKRUDWWULEXWHVWKH
GLVFRPILWXUHWRWKHXQFRQJHQLDO3DULVLDQHQYLURQPHQWZKLFKLVDVW\OHRIUHDVRQLQJPXFKOLNHWKDWRIP\YLOODJH
VRUFHUHU,IHDU
%XWRXUYLOODJHIULHQGWKRXJKSHUKDSVFRQVWUXFWLYHO\ULJKWLQKLVSKLORVRSKL]LQJZDVFHUWDLQO\YHU\GHIHFWLYHLQKLV
DFTXDLQWDQFHZLWKWKHWLPHKRQRXUHGDUWRIUKDEGRPDQF\+DGKHH[WHQGHGKLVLQTXLULHVVRDVWRFRYHUWKHILHOGRI
,QGR(XURSHDQWUDGLWLRQKHZRXOGKDYHOHDUQHGWKDWWKHPRXQWDLQDVKWKHPLVWOHWRHWKHZKLWHDQGEODFNWKRUQWKH
+LQGXDVYDWWKDDQGVHYHUDORWKHUZRRGVDUHTXLWHDVHIILFLHQWDVWKHKD]HOIRUWKHSXUSRVHRIGHWHFWLQJZDWHULQWLPHV
RIGURXJKWDQGLQGXHFRXUVHRIWLPHKHZRXOGKDYHSHUFHLYHGWKDWWKHGLYLQLQJURGLWVHOILVEXWRQHDPRQJDODUJH
FODVVRIWKLQJVWRZKLFKSRSXODUEHOLHIKDVDVFULEHGDORQJZLWKRWKHUWDOLVPDQLFSURSHUWLHVWKHSRZHURIRSHQLQJWKH
JURXQGRUFOHDYLQJURFNVLQRUGHUWRUHYHDOKLGGHQWUHDVXUHV/HDYLQJKLPLQSHDFHWKHQZLWKKLVELWRIIRUNHGKD]HO
WRVHHNIRUFRROLQJVSULQJVLQVRPHIXWXUHWKLUVW\VHDVRQOHWXVHQGHDYRXUWRHOXFLGDWHWKHRULJLQRIWKLVFXULRXV
VXSHUVWLWLRQ
7KHGHWHFWLRQRIVXEWHUUDQHDQZDWHULVE\QRPHDQVWKHRQO\XVHWRZKLFKWKHGLYLQLQJURGKDVEHHQSXW$PRQJWKH
DQFLHQW)ULVLDQVLWZDVUHJXODUO\XVHGIRUWKHGHWHFWLRQRIFULPLQDOVDQGWKHUHSXWDWLRQRI-DFTXHV$\PDUZDVZRQE\
KLVGLVFRYHU\RIWKHSHUSHWUDWRURIDKRUULEOHPXUGHUDW/\RQV7KURXJKRXW(XURSHLWKDVEHHQXVHGIURPWLPH
LPPHPRULDOE\PLQHUVIRUDVFHUWDLQLQJWKHSRVLWLRQRIYHLQVRIPHWDODQGLQWKHGD\VZKHQWDOHQWVZHUHZUDSSHGLQ
QDSNLQVDQGEXULHGLQWKHILHOGLQVWHDGRIEHLQJH[SRVHGWRWKHULVNVRIILQDQFLDOVSHFXODWLRQWKHGLYLQLQJURGZDV
HPSOR\HGE\SHUVRQVFRYHWRXVRIWKHLUQHLJKERXUV¶ZHDOWK,I%RXODWUXHOOHKDGOLYHGLQWKHVL[WHHQWKFHQWXU\KHZRXOG
KDYHWDNHQDIRUNHGVWLFNRIKD]HOZKHQKHZHQWWRVHDUFKIRUWKHEXULHGWUHDVXUHVRI-HDQ9DOMHDQ,WKDVDOVREHHQ
DSSOLHGWRWKHFXUHRIGLVHDVHDQGKDVEHHQNHSWLQKRXVHKROGVOLNHDZL]DUG¶VFKDUPWRLQVXUHJHQHUDOJRRGIRUWXQH
DQGLPPXQLW\IURPGLVDVWHU
$VZHIROORZWKHFRQFHSWLRQIXUWKHULQWRWKHHOIODQGRISRSXODUWUDGLWLRQZHFRPHXSRQDURGZKLFKQRWRQO\SRLQWV
RXWWKHVLWXDWLRQRIKLGGHQWUHDVXUHEXWHYHQVSOLWVRSHQWKHJURXQGDQGUHYHDOVWKHPLQHUDOZHDOWKFRQWDLQHGWKHUHLQ,Q
*HUPDQOHJHQG³DVKHSKHUGZKRZDVGULYLQJKLVIORFNRYHUWKH,OVHQVWHLQKDYLQJVWRSSHGWRUHVWOHDQLQJRQKLVVWDII
WKHPRXQWDLQVXGGHQO\RSHQHGIRUWKHUHZDVDVSULQJZRUWLQKLVVWDIIZLWKRXWKLVNQRZLQJLWDQGWKHSULQFHVV>,OVH@
VWRRGEHIRUHKLP6KHEDGHKLPIROORZKHUDQGZKHQKHZDVLQVLGHWKHPRXQWDLQVKHWROGKLPWRWDNHDVPXFKJROGDV
KHSOHDVHG7KHVKHSKHUGILOOHGDOOKLVSRFNHWVDQGZDVJRLQJDZD\ZKHQWKHSULQFHVVFDOOHGDIWHUKLPµ)RUJHWQRWWKH
EHVW¶6RWKLQNLQJVKHPHDQWWKDWKHKDGQRWWDNHQHQRXJKKHILOOHGKLVKDWDOVREXWZKDWVKHPHDQWZDVKLVVWDIIZLWK
WKHVSULQJZRUWZKLFKKHKDGODLGDJDLQVWWKHZDOODVVRRQDVKHVWHSSHGLQ%XWQRZMXVWDVKHZDVJRLQJRXWDWWKH
RSHQLQJWKHURFNVXGGHQO\VODPPHGWRJHWKHUDQGFXWKLPLQWZR´>@
>@.HOO\,QGR(XURSHDQ)RON/RUHS
+HUHWKHURGGHULYHVLWVPDUYHOORXVSURSHUWLHVIURPWKHHQFORVHGVSULQJZRUWEXWLQPDQ\FDVHVDOHDIRUIORZHULVLWVHOI
FRPSHWHQWWRRSHQWKHKLOOVLGH7KHOLWWOHEOXHIORZHUIRUJHWPHQRWDERXWZKLFKVRPDQ\VHQWLPHQWDODVVRFLDWLRQV
KDYHFOXVWHUHGRZHVLWVQDPHWRWKHOHJHQGVWROGRILWVWDOLVPDQLFYLUWXHV>@$PDQWUDYHOOLQJRQDORQHO\PRXQWDLQ
SLFNVXSDOLWWOHEOXHIORZHUDQGVWLFNVLWLQKLVKDW)RUWKZLWKDQLURQGRRURSHQVVKRZLQJXSDOLJKWHGSDVVDJHZD\
WKURXJKZKLFKWKHPDQDGYDQFHVLQWRDPDJQLILFHQWKDOOZKHUHUXELHVDQGGLDPRQGVDQGDOORWKHUNLQGVRIJHPVDUH
O\LQJSLOHGLQJUHDWKHDSVRQWKHIORRU$VKHHDJHUO\ILOOVKLVSRFNHWVKLVKDWGURSVIURPKLVKHDGDQGZKHQKHWXUQVWR
JRRXWWKHOLWWOHIORZHUFDOOVDIWHUKLP³)RUJHWPHQRW´+HWXUQVEDFNDQGORRNVDURXQGEXWLVWRREHZLOGHUHGZLWKKLV
JRRGIRUWXQHWRWKLQNRIKLVEDUHKHDGRURIWKHOXFNIORZHUZKLFKKHKDVOHWIDOO+HVHOHFWVVHYHUDOPRUHRIWKHILQHVW
MHZHOVKHFDQILQGDQGDJDLQVWDUWVWRJRRXWEXWDVKHSDVVHVWKURXJKWKHGRRUWKHPRXQWDLQFORVHVDPLGWKHFUDVKLQJ
RIWKXQGHUDQGFXWVRIIRQHRIKLVKHHOV$ORQHLQWKHJORRPRIWKHIRUHVWKHVHDUFKHVLQYDLQIRUWKHP\VWHULRXVGRRU
LWKDVGLVDSSHDUHGIRUHYHUDQGWKHWUDYHOOHUJRHVRQKLVZD\WKDQNIXOOHWXVKRSHWKDWKHKDVIDUHGQRZRUVH
>@7KHVWRU\RIWKHOXFNIORZHULVZHOOWROGLQYHUVHE\0U
%DULQJ*RXOGLQKLV6LOYHU6WRUHSVHT
6RPHWLPHVLWLVDZKLWHODG\OLNHWKH3ULQFHVV,OVHZKR
LQYLWHVWKHILQGHURIWKHOXFNIORZHUWRKHOSKLPVHOIWRKHU
WUHDVXUHVDQGZKRXWWHUVWKHHQLJPDWLFDOZDUQLQJ7KH
PRXQWDLQZKHUHWKHHYHQWRFFXUUHGPD\EHIRXQGDOPRVWDQ\ZKHUH
LQ*HUPDQ\DQGRQHMXVWOLNHLWVWRRGLQ3HUVLDLQWKH
JROGHQSULPHRI+DURXQ$OUDVFKLG,QWKHVWRU\RIWKH)RUW\
7KLHYHVWKHPHUHQDPHRIWKHSODQWVHVDPHVHUYHVDVD
WDOLVPDQWRRSHQDQGVKXWWKHVHFUHWGRRUZKLFKOHDGVLQWRWKH
UREEHUV¶FDYHUQDQGZKHQWKHDYDULFLRXV&DVVLP%DEDDEVRUEHG
LQWKHFRQWHPSODWLRQRIWKHEDJVRIJROGDQGEDOHVRIULFK
PHUFKDQGLVHIRUJHWVWKHPDJLFIRUPXODKHPHHWVQREHWWHU
IDWHWKDQWKHVKHSKHUGRIWKH,OVHQVWHLQ,QWKHVWRU\RI
3ULQFH$KPHGLWLVDQHQFKDQWHGDUURZZKLFKJXLGHVWKH\RXQJ
DGYHQWXUHUWKURXJKWKHKLOOVLGHWRWKHJURWWRRIWKH3HUL
%DQRX,QWKHWDOHRI%DED$EGDOODKLWLVDQRLQWPHQWUXEEHG
RQWKHH\HOLGZKLFKUHYHDOVDWDVLQJOHJODQFHDOOWKH
WUHDVXUHVKLGGHQLQWKHERZHOVRIWKHHDUWK
7KHDQFLHQW5RPDQVDOVRKDGWKHLUURFNEUHDNLQJSODQWFDOOHG6D[LIUDJDRU³VDVVDIUDV´$QGWKHIXUWKHUZHSHQHWUDWH
LQWRWKLVFKDUPHGFLUFOHRIWUDGLWLRQVWKHPRUHHYLGHQWGRHVLWDSSHDUWKDWWKHSRZHURIFOHDYLQJURFNVRUVKDWWHULQJKDUG
VXEVWDQFHVHQWHUVDVDSULPLWLYHHOHPHQWLQWRWKHFRQFHSWLRQRIWKHVHWUHDVXUHVKRZLQJWDOLVPDQV0U%DULQJ*RXOG
KDVJLYHQDQH[FHOOHQWDFFRXQWRIWKHUDEELQLFDOOHJHQGVFRQFHUQLQJWKHZRQGHUIXOVFKDPLUE\WKHDLGRIZKLFK
6RORPRQZDVVDLGWRKDYHEXLOWKLVWHPSOH)URP$VPRGHXVSULQFHRIWKH-DQQ%HQDLDKWKHVRQRI-HKRLDGDZUHVWHG
WKHVHFUHWRIDZRUPQRELJJHUWKDQDEDUOH\FRUQZKLFKFRXOGVSOLWWKHKDUGHVWVXEVWDQFH7KLVZRUPZDVFDOOHG
VFKDPLU³,I6RORPRQGHVLUHGWRSRVVHVVKLPVHOIRIWKHZRUPKHPXVWILQGWKHQHVWRIWKHPRRUKHQDQGFRYHULWZLWKD
SODWHRIJODVVVRWKDWWKHPRWKHUELUGFRXOGQRWJHWDWKHU\RXQJZLWKRXWEUHDNLQJWKHJODVV6KHZRXOGVHHNVFKDPLUIRU
WKHSXUSRVHDQGWKHZRUPPXVWEHREWDLQHGIURPKHU´$VWKH-HZLVKNLQJGLGQHHGWKHZRUPLQRUGHUWRKHZWKH
VWRQHVIRUWKDWWHPSOHZKLFKZDVWREHEXLOWZLWKRXWVRXQGRIKDPPHURUD[HRUDQ\WRRORILURQ>@KHVHQW%HQDLDK
WRREWDLQLW$FFRUGLQJWRDQRWKHUDFFRXQWVFKDPLUZDVDP\VWLFVWRQHZKLFKHQDEOHG6RORPRQWRSHQHWUDWHWKHHDUWKLQ
VHDUFKRIPLQHUDOZHDOWK'LUHFWHGE\D-LQQLWKHZLVHNLQJFRYHUHGDUDYHQ¶VHJJVZLWKDSODWHRIFU\VWDODQGWKXV
REWDLQHGVFKDPLUZKLFKWKHELUGEURXJKWLQRUGHUWREUHDNWKHSODWH>@
>@.LQJVYL
>@&RPSDUHWKH0XVVXOPDQDFFRXQWRIWKHEXLOGLQJRIWKHWHPSOHLQ%DULQJ*RXOG/HJHQGVRIWKH3DWULDUFKVDQG
3URSKHWVSS$QGVHHWKHVWRU\RI'LRFOHWLDQ¶VRVWULFK6ZDQ*HVWD5RPDQRUXPHG:ULJKW9RO,SO[LY
6HHDOVRWKHSUHWW\VWRU\RIWKHNQLJKWXQMXVWO\LPSULVRQHGLGSFLL
,QWKHVHWUDGLWLRQVZKLFKPD\SRVVLEO\EHRI$U\DQGHVFHQWGXHWRWKHSURORQJHGLQWHUFRXUVHEHWZHHQWKH-HZVDQGWKH
3HUVLDQVDQHZIHDWXUHLVDGGHGWRWKRVHEHIRUHHQXPHUDWHG
WKHURFNVSOLWWLQJWDOLVPDQLVDOZD\VIRXQGLQWKHSRVVHVVLRQRIDELUG7KHVDPHIHDWXUHLQWKHP\WKUHDSSHDUVRQ$U\DQ
VRLO7KHVSULQJZRUWZKRVHPDUYHOORXVSRZHUVZHKDYHQRWLFHGLQWKHFDVHRIWKH,OVHQVWHLQVKHSKHUGLVREWDLQHG
DFFRUGLQJWR3OLQ\E\VWRSSLQJXSWKHKROHLQDWUHHZKHUHDZRRGSHFNHUNHHSVLWV\RXQJ7KHELUGIOLHVDZD\DQG
SUHVHQWO\UHWXUQVZLWKWKHVSULQJZRUWZKLFKLWDSSOLHVWRWKHSOXJFDXVLQJLWWRVKRRWRXWZLWKDORXGH[SORVLRQ7KH
VDPHDFFRXQWLVJLYHQLQ*HUPDQIRONORUH(OVHZKHUHDVLQ,FHODQG1RUPDQG\DQGDQFLHQW*UHHFHWKHELUGLVDQ
HDJOHDVZDOORZDQRVWULFKRUDKRRSRH
,QWKH,FHODQGLFDQG3RPHUDQLDQP\WKVWKHVFKDPLURU³UDYHQVWRQH´DOVRUHQGHUVLWVSRVVHVVRULQYLVLEOHDSURSHUW\
ZKLFKLWVKDUHVZLWKRQHRIWKHWUHDVXUHILQGLQJSODQWVWKHIHUQ>@,QWKLVUHVSHFWLWUHVHPEOHVWKHULQJRI*\JHVDVLQ
LWVGLYLQLQJDQGURFNVSOLWWLQJTXDOLWLHVLWUHVHPEOHVWKDWRWKHUULQJZKLFKWKH$IULFDQPDJULFLDQJDYHWR$ODGGLQWR
HQDEOHKLPWRGHVFHQGLQWRWKHFDYHUQZKHUHVWRRGWKHZRQGHUIXOODPS
>@³:HKDYHWKHUHFHLSWRIIHUQVHHG:HZDONLQYLVLEOH´²
6KDNHVSHDUH+HQU\,96HH5DOVWRQ6RQJVRIWKH5XVVLDQ
3HRSOHS
$FFRUGLQJWRRQH1RUWK*HUPDQWUDGLWLRQWKHOXFNIORZHUDOVRZLOOPDNHLWVILQGHULQYLVLEOHDWSOHDVXUH%XWDVWKH
P\WKVKUHZGO\DGGVLWLVDEVROXWHO\HVVHQWLDOWKDWWKHIORZHUEHIRXQGE\DFFLGHQWKHZKRVHHNVIRULWQHYHUILQGVLW
7KXVDOOFDYLOVDUHVNLOIXOO\IRUHVWDOOHGHYHQLIQRWVDWLVIDFWRULO\GLVSRVHGRI7KHVDPHNLQGRIUHDVRQLQJLVIDYRXUHGE\
RXUPRGHUQGHDOHUVLQP\VWHU\VRPHKRZWKH³FRQGLWLRQV´DOZD\VDUHDVNHZZKHQHYHUDVFLHQWLILFREVHUYHUZLVKHVWR
WHVWWKHLUSUHWHQVLRQV
,QWKH1RUWKRI(XURSHVFKDPLUDSSHDUVVWUDQJHO\DQGJURWHVTXHO\PHWDPRUSKRVHG7KHKDQGRIDPDQWKDWKDVEHHQ
KDQJHGZKHQGULHGDQGSUHSDUHGZLWKFHUWDLQZHLUGXQJXHQWVDQGVHWRQILUHLVNQRZQDVWKH+DQGRI*ORU\DQGDVLW
QRWRQO\EXUVWVRSHQDOOVDIHORFNVEXWDOVROXOOVWRVOHHSDOOSHUVRQVZLWKLQWKHFLUFOHRILWVLQIOXHQFHLWLVRIFRXUVH
LQYDOXDEOHWRWKLHYHVDQGEXUJODUV,TXRWHWKHIROORZLQJVWRU\IURP7KRUSH¶V³1RUWKHUQ0\WKRORJ\´³7ZRIHOORZV
RQFHFDPHWR+X\ZKRSUHWHQGHGWREHH[FHHGLQJO\IDWLJXHGDQGZKHQWKH\KDGVXSSHGZRXOGQRWUHWLUHWRDVOHHSLQJ
URRPEXWEHJJHGWKHLUKRVWZRXOGDOORZWKHPWRWDNHDQDSRQWKHKHDUWK%XWWKHPDLGVHUYDQWZKRGLGQRWOLNHWKH
ORRNVRIWKHWZRJXHVWVUHPDLQHGE\WKHNLWFKHQGRRUDQGSHHSHGWKURXJKDFKLQNZKHQVKHVDZWKDWRQHRIWKHPGUHZ
DWKLHI¶VKDQGIURPKLVSRFNHWWKHILQJHUVRIZKLFKDIWHUKDYLQJUXEEHGWKHPZLWKDQRLQWPHQWKHOLJKWHGDQGWKH\DOO
EXUQHGH[FHSWRQH$JDLQWKH\KHOGWKLVILQJHUWRWKHILUHEXWVWLOOLWZRXOGQRWEXUQDWZKLFKWKH\DSSHDUHGPXFK
VXUSULVHGDQGRQHVDLGµ7KHUHPXVWVXUHO\EHVRPHRQHLQWKHKRXVHZKRLVQRW\HWDVOHHS¶7KH\WKHQKXQJWKHKDQG
ZLWKLWVIRXUEXUQLQJILQJHUVE\WKHFKLPQH\DQGZHQWRXWWRFDOOWKHLUDVVRFLDWHV%XWWKHPDLGIROORZHGWKHPLQVWDQWO\
DQGPDGHWKHGRRUIDVWWKHQUDQXSVWDLUVZKHUHWKHODQGORUGVOHSWWKDWVKHPLJKWZDNHKLPEXWZDVXQDEOH
QRWZLWKVWDQGLQJDOOKHUVKDNLQJDQGFDOOLQJ,QWKHPHDQWLPHWKHWKLHYHVKDGUHWXUQHGDQGZHUHHQGHDYRXULQJWRHQWHU
WKHKRXVHE\DZLQGRZEXWWKHPDLGFDVWWKHPGRZQIURPWKHODGGHU7KH\WKHQWRRNDGLIIHUHQWFRXUVHDQGZRXOG
KDYHIRUFHGDQHQWUDQFHKDGLWQRWRFFXUUHGWRWKHPDLGWKDWWKHEXUQLQJILQJHUVPLJKWSUREDEO\EHWKHFDXVHRIKHU
PDVWHU¶VSURIRXQGVOHHS,PSUHVVHGZLWKWKLVLGHDVKHUDQWRWKHNLWFKHQDQGEOHZWKHPRXWZKHQWKHPDVWHUDQGKLV
PHQVHUYDQWVLQVWDQWO\DZRNHDQGVRRQGURYHDZD\WKHUREEHUV´7KHVDPHHYHQWLVVDLGWRKDYHRFFXUUHGDW6WDLQPRUH
LQ(QJODQGDQG7RUTXHUPDGDUHODWHVRI0H[LFDQWKLHYHVWKDWWKH\FDUU\ZLWKWKHPWKHOHIWKDQGRIDZRPDQZKRKDV
GLHGLQKHUILUVWFKLOGEHGEHIRUHZKLFKWDOLVPDQDOOEROWV\LHOGDQGDOORSSRVLWLRQLVEHQXPEHG,Q³VRPH,ULVK
WKLHYHVDWWHPSWHGWRFRPPLWDUREEHU\RQWKHHVWDWHRI0U1DSHURI/RXJKFUHZFRXQW\0HDWK7KH\HQWHUHGWKH
KRXVHDUPHGZLWKDGHDGPDQ¶VKDQGZLWKDOLJKWHGFDQGOHLQLWEHOLHYLQJLQWKHVXSHUVWLWLRXVQRWLRQWKDWDFDQGOH
SODFHGLQDGHDGPDQ¶VKDQGZLOOQRWEHVHHQE\DQ\EXWWKRVHE\ZKRPLWLVXVHGDQGDOVRWKDWLIDFDQGOHLQDGHDG
KDQGEHLQWURGXFHGLQWRDKRXVHLWZLOOSUHYHQWWKRVHZKRPD\EHDVOHHSIURPDZDNLQJ7KHLQPDWHVKRZHYHUZHUH
DODUPHGDQGWKHUREEHUVIOHGOHDYLQJWKHKDQGEHKLQGWKHP´>@
>@+HQGHUVRQ)RON/RUHRIWKH1RUWKHUQ&RXQWLHVRI(QJODQG
S
,QWKH0LGGOH$JHVWKHKDQGRIJORU\ZDVXVHGMXVWOLNHWKHGLYLQLQJURGIRUWKHGHWHFWLRQRIEXULHGWUHDVXUHV
+HUHWKHQZHKDYHDODUJHDQGPRWOH\JURXSRIREMHFWV²WKHIRUNHGURGRIDVKRUKD]HOWKHVSULQJZRUWDQGWKHOXFN
IORZHUOHDYHVZRUPVVWRQHVULQJVDQGGHDGPHQ¶VKDQGV²ZKLFKDUHIRUWKHPRVWSDUWFRPSHWHQWWRRSHQWKHZD\
LQWRFDYHUQRXVURFNVDQGZKLFKDOODJUHHLQSRLQWLQJRXWKLGGHQZHDOWK:HILQGPRUHRYHUWKDWPDQ\RIWKHVH
FKDUPHGREMHFWVDUHFDUULHGDERXWE\ELUGVDQGWKDWVRPHRIWKHPSRVVHVVLQDGGLWLRQWRWKHLUJHQHULFSURSHUWLHVWKH
VSHFLILFSRZHURIEHQXPELQJSHRSOH¶VVHQVHV:KDWQRZLVWKHFRPPRQRULJLQRIWKLVZKROHJURXSRIVXSHUVWLWLRQV"
$QGVLQFHP\WKRORJ\KDVEHHQVKRZQWREHWKHUHVXOWRISULPHYDODWWHPSWVWRH[SODLQWKHSKHQRPHQDRIQDWXUHZKDW
QDWXUDOSKHQRPHQRQFRXOGHYHUKDYHJLYHQULVHWRVRPDQ\VHHPLQJO\ZDQWRQFRQFHSWLRQV"+RSHOHVVDVWKHSUREOHP
PD\DWILUVWVLJKWVHHPLWKDVQHYHUWKHOHVVEHHQVROYHG,QKLVJUHDWWUHDWLVHRQ³7KH'HVFHQWRI)LUH´'U.XKQKDV
VKRZQWKDWDOOWKHVHOHJHQGVDQGWUDGLWLRQVDUHGHVFHQGHGIURPSULPLWLYHP\WKVH[SODQDWRU\RIWKHOLJKWQLQJDQGWKH
VWRUPFORXG>@
>@.XKQ'LH+HUDENXQIWGHV)HXHUVXQGGHV*RWWHUWUDQNV
%HUOLQ
7RXVZKRDUHQRXULVKHGIURPFKLOGKRRGRQWKHWUXWKVUHYHDOHGE\VFLHQFHWKHVN\LVNQRZQWREHPHUHO\DQRSWLFDO
DSSHDUDQFHGXHWRWKHSDUWLDODEVRUSWLRQRIWKHVRODUUD\VLQSDVVLQJWKURXJKDWKLFNVWUDWXPRIDWPRVSKHULFDLUWKH
FORXGVDUHNQRZQWREHODUJHPDVVHVRIZDWHU\YDSRXUZKLFKGHVFHQGLQUDLQGURSVZKHQVXIILFLHQWO\FRQGHQVHGDQG
WKHOLJKWQLQJLVNQRZQWREHDIODVKRIOLJKWDFFRPSDQ\LQJDQHOHFWULFGLVFKDUJH%XWWKHVHFRQFHSWLRQVDUHH[WUHPHO\
UHFRQGLWHDQGKDYHEHHQDWWDLQHGRQO\WKURXJKFHQWXULHVRISKLORVRSKL]LQJDQGDIWHUFDUHIXOREVHUYDWLRQDQGODERULRXV
H[SHULPHQW7RWKHXQWDXJKWPLQGRIDFKLOGRURIDQXQFLYLOL]HGPDQLWVHHPVIDUPRUHQDWXUDODQGSODXVLEOHWRUHJDUG
WKHVN\DVDVROLGGRPHRIEOXHFU\VWDOWKHFORXGVDVVQRZ\PRXQWDLQVRUSHUKDSVHYHQDVJLDQWVRUDQJHOVWKH
OLJKWQLQJDVDIODVKLQJGDUWRUDILHU\VHUSHQW,QSRLQWRIIDFWZHILQGWKDWWKHFRQFHSWLRQVDFWXDOO\HQWHUWDLQHGDUHRIWHQ
IDUPRUHJURWHVTXHWKDQWKHVH,FDQUHFROOHFWRQFHIUDPLQJWKHK\SRWKHVLVWKDWWKHIODPLQJFORXGVRIVXQVHWZHUH
WUDQVLHQWDSSDULWLRQVYRXFKVDIHGXVE\ZD\RIZDUQLQJRIWKDWEXUQLQJ&DOYLQLVWLFKHOOZLWKZKLFKP\FKLOGLVK
LPDJLQDWLRQKDGEHHQXQZLVHO\WHUULILHG>@DQG,KDYHNQRZQRIDIRXU\HDUROGER\ZKRWKRXJKWWKDWWKHVQRZ\
FORXGVRIQRRQGD\ZHUHWKHZKLWHUREHVRIWKHDQJHOVKXQJRXWWRGU\LQWKHVXQ>@0\OLWWOHGDXJKWHULVDQ[LRXVWR
NQRZZKHWKHULWLVQHFHVVDU\WRWDNHDEDOORRQLQRUGHUWRJHWWRWKHSODFHZKHUH*RGOLYHVRUZKHWKHUWKHVDPHHQGFDQ
EHDFFRPSOLVKHGE\JRLQJWRWKHKRUL]RQDQGFUDZOLQJXSWKHVN\>@WKH0RKDPPHGDQRIROGZDVZRUNLQJDWWKH
VDPHSUREOHPZKHQKHFDOOHGWKHUDLQERZWKHEULGJH(V6LUDWRYHUZKLFKVRXOVPXVWSDVVRQWKHLUZD\WRKHDYHQ
$FFRUGLQJWRWKHDQFLHQW-HZWKHVN\ZDVDVROLGSODWHKDPPHUHGRXWE\WKHJRGVDQGVSUHDGRYHUWKHHDUWKLQRUGHUWR
NHHSXSWKHRFHDQRYHUKHDG>@EXWWKHSODWHZDVIXOORIOLWWOHZLQGRZVZKLFKZHUHRSHQHGZKHQHYHULWEHFDPH
QHFHVVDU\WROHWWKHUDLQFRPHWKURXJK>@:LWKHTXDOSODXVLELOLW\WKH*UHHNUHSUHVHQWHGWKHUDLQ\VN\DVDVLHYHLQ
ZKLFKWKHGDXJKWHUVRI'DQDRVZHUHYDLQO\WU\LQJWRGUDZZDWHUZKLOHWRWKH+LQGXWKHUDLQFORXGVZHUHFHOHVWLDO
FDWWOHPLONHGE\WKHZLQGJRG,QSULPLWLYH$U\DQORUHWKHVN\LWVHOIZDVDEOXHVHDDQGWKHFORXGVZHUHVKLSVVDLOLQJ
RYHULWDQGDQ(QJOLVKOHJHQGWHOOVKRZRQHRIWKHVHVKLSVRQFHFDXJKWLWVDQFKRURQDJUDYHVWRQHLQWKHFKXUFK\DUGWR
WKHJUHDWDVWRQLVKPHQWRIWKHSHRSOHZKRZHUHFRPLQJRXWRIFKXUFK&KDURQ¶VIHUU\ERDWZDVRQHRIWKHVHYHVVHOVDQG
DQRWKHUZDV2GLQ¶VJROGHQVKLSLQZKLFKWKHVRXOVRIVODLQKHURHVZHUHFRQYH\HGWR9DOKDOOD+HQFHLWZDVRQFHWKH
6FDQGLQDYLDQSUDFWLFHWREXU\WKHGHDGLQERDWVDQGLQ$OWPDUNDSHQQ\LVVWLOOSODFHGLQWKHPRXWKRIWKHFRUSVHWKDWLW
PD\KDYHWKHPHDQVRISD\LQJLWVIDUHWRWKHJKRVWO\IHUU\PDQ>@,QVXFKDYHVVHOGULIWHGWKH/DG\RI6KDORWWRQKHU
IDWDOYR\DJHDQGRIVLPLODUQDWXUHZDVWKHGXVN\EDUJH³GDUNDVDIXQHUDOVFDUIIURPVWHPWRVWHUQ´LQZKLFK$UWKXU
ZDVUHFHLYHGE\WKHEODFNKRRGHGTXHHQV>@
>@³6DJDPHIRUZKDQE\WKVHRVXQQHUHDGRQDHIHQ",FWKHVHFJHIRUWKRQKHRORFDWKRQKHOOH²7HOOPHZK\LVWKH
VXQUHGDWHYHQ",WHOOWKHHEHFDXVHVKHORRNHWKRQKHOO´7KRUSH$QDOHFWD$QJOR6D[RQLFDSDSXG7\ORU
3ULPLWLYH&XOWXUH9RO,,S%DUEDULFWKRXJKWKDGSDUWO\DQWLFLSDWHGP\FKLOGLVKWKHRU\
>@³6WLOOLQ1RUWK*HUPDQ\GRHVWKHSHDVDQWVD\RIWKXQGHUWKDWWKHDQJHOVDUHSOD\LQJVNLWWOHVDORIWDQGRIWKHVQRZ
WKDWWKH\DUHVKDNLQJXSWKHIHDWKHUEHGVLQKHDYHQ´²
%DULQJ*RXOG%RRNRI:HUHZROYHVS
>@³7KH3RO\QHVLDQVLPDJLQHWKDWWKHVN\GHVFHQGVDWWKHKRUL]RQDQGHQFORVHVWKHHDUWK+HQFHWKH\FDOOIRUHLJQHUV
SDSDODQJLRUµKHDYHQEXUVWHUV¶DVKDYLQJEURNHQLQIURPDQRWKHUZRUOGRXWVLGH´²0D[0XOOHU&KLSV,,
>@³²$QGVDLGWKHJRGVOHWWKHUHEHDKDPPHUHGSODWHLQWKHPLGVWRIWKHZDWHUVDQGOHWLWEHGLYLGLQJEHWZHHQ
ZDWHUVDQGZDWHUV´*HQHVLVL
>@*HQHVLVYLL
>@6HH.HOO\,QGR(XURSHDQ)RON/RUHSZKRVWDWHVDOVRWKDWLQ%HQJDOWKH*DUURZVEXUQWKHLUGHDGLQDVPDOO
ERDWSODFHGRQWRSRIWKHIXQHUDOSLOH
,QWKHLUFKDUDFWHURIFRZVDOVRWKHFORXGVZHUHUHJDUGHGDVSV\FKRSRPSVDQGKHQFHLWLVVWLOODSRSXODUVXSHUVWLWLRQ
WKDWDFRZEUHDNLQJLQWRWKH\DUGIRUHWRNHQVDGHDWKLQWKHIDPLO\
>@7KHVXQJRG)UH\UKDGDFORXGVKLSFDOOHG6NLWKEODWKQLUZKLFKLVWKXVGHVFULEHGLQ'DVHQW¶V3URVH(GGD³6KHLV
VRJUHDWWKDWDOOWKH$(VLUZLWKWKHLUZHDSRQVDQGZDUJHDUPD\ILQGURRPRQERDUGKHU´EXW³ZKHQWKHUHLVQRQHHG
RIIDULQJRQWKHVHDLQKHUVKHLVPDGHZLWKVRPXFKFUDIWWKDW)UH\UPD\IROGKHUWRJHWKHUOLNHDFORWKDQGNHHS
KHULQKLVEDJ´7KLVVDPHYLUWXHZDVSRVVHVVHGE\WKHIDLU\SDYLOLRQZKLFKWKH3HUL%DQRXJDYHWR$KPHGWKHFORXG
ZKLFKLVQRELJJHUWKDQDPDQ¶VKDQGPD\VRRQRYHUVSUHDGWKHZKROHKHDYHQDQGVKDGHWKH6XOWDQ¶VDUP\IURPWKH
VRODUUD\V
%XWWKHIDFWWKDWDQDWXUDOSKHQRPHQRQZDVH[SODLQHGLQRQHZD\GLGQRWKLQGHULWIURPEHLQJH[SODLQHGLQDGR]HQ
RWKHUZD\V7KHIDFWWKDWWKHVXQZDVJHQHUDOO\UHJDUGHGDVDQDOOFRQTXHULQJKHURGLGQRWSUHYHQWLWVEHLQJFDOOHGDQ
HJJDQDSSOHRUDIURJVTXDWWLQJRQWKHZDWHUVRU,[LRQ¶VZKHHORUWKHH\HRI3RO\SKHPRVRUWKHVWRQHRI6LV\SKRV
ZKLFKZDVQRVRRQHUSXVKHGWRWKH]HQLWKWKDQLWUROOHGGRZQWRWKHKRUL]RQ6RWKHVN\ZDVQRWRQO\DFU\VWDOGRPHRU
DFHOHVWLDORFHDQEXWLWZDVDOVRWKH$OHLDQODQGWKURXJKZKLFK%HOOHURSKRQZDQGHUHGWKHFRXQWU\RIWKH/RWRVHDWHUV
RUDJDLQWKHUHDOPRIWKH*UDLDLEH\RQGWKHWZLOLJKWDQGILQDOO\LWZDVSHUVRQLILHGDQGZRUVKLSSHGDV'\DXVRU9DUXQD
WKH9HGLFSURWRW\SHVRIWKH*UHHN=HXVDQG2XUDQRV7KHFORXGVWRRKDGPDQ\RWKHUUHSUHVHQWDWLYHVEHVLGHVVKLSVDQG
FRZV,QDIXWXUHSDSHULWZLOOEHVKRZQWKDWWKH\ZHUHVRPHWLPHVUHJDUGHGDVDQJHOVRUKRXULVDWSUHVHQWLWPRUH
QHDUO\FRQFHUQVXVWRNQRZWKDWWKH\DSSHDUWKURXJKRXWDOO$U\DQP\WKRORJ\XQGHUWKHIRUPRIELUGV,WXVHGWREHD
PDWWHURIKRSHOHVVZRQGHUWRPHWKDW$ODGGLQ¶VLQQRFHQWUHTXHVWIRUDURF¶VHJJWRKDQJLQWKHGRPHRIKLVSDODFH
VKRXOGKDYHEHHQUHJDUGHGDVDFULPHZRUWK\RISXQLVKPHQWE\WKHORVVRIWKHZRQGHUIXOODPSWKHREVFXUHVWSDUWRIWKH
ZKROHDIIDLUEHLQJSHUKDSVWKH-LQQL¶VSDVVLRQDWHDOOXVLRQWRWKHHJJDVKLVPDVWHU³:UHWFKGRVWWKRXFRPPDQGPHWR
EULQJWKHHP\PDVWHUDQGKDQJKLPXSLQWKHPLGVWRIWKLVYDXOWHGGRPH"´%XWWKHLQFLGHQWLVWRVRPHH[WHQWFOHDUHGRI
LWVP\VWHU\ZKHQZHOHDUQWKDWWKHURF¶VHJJLVWKHEULJKWVXQDQGWKDWWKHURFLWVHOILVWKHUXVKLQJVWRUPFORXGZKLFKLQ
WKHWDOHRI6LQGEDGKDXQWVWKHVSDUNOLQJVWDUU\ILUPDPHQWV\PEROL]HGDVDYDOOH\RIGLDPRQGV>@$FFRUGLQJWRRQH
$UDELFDXWKRULW\WKHOHQJWKRILWVZLQJVLVWHQWKRXVDQGIDWKRPV%XWLQ(XURSHDQWUDGLWLRQLWGZLQGOHVIURPWKHVHKXJH
GLPHQVLRQVWRWKHVL]HRIDQHDJOHDUDYHQRUDZRRGSHFNHU$PRQJWKHELUGVHQXPHUDWHGE\.XKQDQGRWKHUVDV
UHSUHVHQWLQJWKHVWRUPFORXGDUHOLNHZLVHWKHZUHQRU³NLQJOHW´ )UHQFKURLWHOHW WKHRZOVDFUHGWR$WKHQHWKHFXFNRR
VWRUNDQGVSDUURZDQGWKHUHGEUHDVWHGURELQZKRVHQDPH5REHUWZDVRULJLQDOO\DQHSLWKHWRIWKHOLJKWQLQJJRG7KRU
,QFHUWDLQSDUWVRI)UDQFHLWLVVWLOOEHOLHYHGWKDWWKHUREELQJRIDZUHQ¶VQHVWZLOOUHQGHUWKHFXOSULWOLDEOHWREHVWUXFNE\
OLJKWQLQJ7KHVDPHEHOLHIZDVIRUPHUO\HQWHUWDLQHGLQ7HXWRQLFFRXQWULHVZLWKUHVSHFWWRWKHURELQDQG,VXSSRVHWKDW
IURPWKLVVXSHUVWLWLRQLVGHVFHQGHGWKHSUHYDOHQWQRWLRQZKLFK,RIWHQHQFRXQWHUHGLQFKLOGKRRGWKDWWKHUHLVVRPHWKLQJ
SHFXOLDUO\ZLFNHGLQNLOOLQJURELQV
>@(XKHPHULVPKDVGRQHLWVEHVWZLWKWKLVELUGUHSUHVHQWLQJLWDVDQLPPHQVHYXOWXUHRUFRQGRURUDVDUHPLQLVFHQFH
RIWKHH[WLQFWGRGR%XWD&KLQHVHP\WKFLWHGE\.ODSURWKZHOOSUHVHUYHVLWVWUXHFKDUDFWHUZKHQLWGHVFULEHVLWDV³D
ELUGZKLFKLQIO\LQJREVFXUHVWKHVXQDQGRIZKRVHTXLOOVDUHPDGHZDWHUWXQV´6HH1RXYHDX-RXUQDO$VLDWLTXH7RP
;,,S7KHELJELUGLQWKH1RUVHWDOHRIWKH³%OXH%HOW´EHORQJVWRWKHVDPHVSHFLHV
1RZDVWKHUDYHQRUZRRGSHFNHULQWKHYDULRXVP\WKVRIVFKDPLULVWKHGDUNVWRUPFORXGVRWKHURFNVSOLWWLQJZRUP
RUSODQWRUSHEEOHZKLFKWKHELUGFDUULHVLQLWVEHDNDQGOHWVIDOOWRWKHJURXQGLVQRWKLQJPRUHRUOHVVWKDQWKHIODVKRI
OLJKWQLQJFDUULHGDQGGURSSHGE\WKHFORXG³,IWKHFORXGZDVVXSSRVHGWREHDJUHDWELUGWKHOLJKWQLQJVZHUHUHJDUGHG
DVZULWKLQJZRUPVRUVHUSHQWVLQLWVEHDN7KHVHILHU\VHUSHQWVHOLNLDLJUDPPRHLGZVIHURPHQRLDUHEHOLHYHGLQWRWKLV
GD\E\WKH&DQDGLDQ,QGLDQVZKRFDOOWKHWKXQGHUWKHLUKLVVLQJ´>@
>@%DULQJ*RXOG&XULRXV0\WKV9RO,,S&RPSDUH7\ORU3ULPLWLYH&XOWXUH9RO,,SVHT
%XWWKHVHDUHQRWWKHRQO\P\WKLFDOFRQFHSWLRQVZKLFKDUHWREHIRXQGZUDSSHGXSLQWKHYDULRXVP\WKVRIVFKDPLUDQG
WKHGLYLQLQJURG7KHSHUVRQVZKRWROGWKHVHVWRULHVZHUHQRWZHDYLQJLQJHQLRXVDOOHJRULHVDERXWWKXQGHUVWRUPVWKH\
ZHUHWHOOLQJVWRULHVRUJLYLQJXWWHUDQFHWRVXSHUVWLWLRQVRIZKLFKWKHRULJLQDOPHDQLQJZDVIRUJRWWHQ7KHROGJUDQQLHV
ZKRDORQJZLWKDVWRLFDOLQGLIIHUHQFHWRWKHIDWHRITXDLOVDQGSDUWULGJHVXVHGWRLPSUHVVXSRQPHWKHZLFNHGQHVVRI
NLOOLQJURELQVGLGQRWDGGWKDW,VKRXOGEHVWUXFNE\OLJKWQLQJLI,IDLOHGWRKHHGWKHLUDGPRQLWLRQV7KH\KDGQHYHU
KHDUGWKDWWKHURELQZDVWKHELUGRI7KRUWKH\PHUHO\UHKHDUVHGWKHUHPQDQWRIWKHVXSHUVWLWLRQZKLFKKDGVXUYLYHGWR
WKHLURZQWLPHVZKLOHWKHHVVHQWLDOSDUWRILWKDGORQJVLQFHIDGHGIURPUHFROOHFWLRQ7KHUHDVRQIRUUHJDUGLQJDURELQ¶V
OLIHDVPRUHVDFUHGWKDQDSDUWULGJH¶VKDGEHHQIRUJRWWHQEXWLWOHIWEHKLQGDVZDVQDWXUDODYDJXHUHFRJQLWLRQRIWKDW
P\WKLFDOVDQFWLW\7KHSULPLWLYHPHDQLQJRIDP\WKIDGHVDZD\DVLQHYLWDEO\DVWKHSULPLWLYHPHDQLQJRIDZRUGRU
SKUDVHDQGWKHUDEELQVZKRWROGRIDZRUPZKLFKVKDWWHUVURFNVQRPRUHWKRXJKWRIWKHZULWKLQJWKXQGHUEROWVWKDQWKH
PRGHUQUHDGHUWKLQNVRIR\VWHUVKHOOVZKHQKHVHHVWKHZRUGRVWUDFLVPRUFRQVFLRXVO\EUHDWKHVDSUD\HUDVKHZULWHV
WKHSKUDVHJRRGE\H,WLVRQO\LQLWVFDOORZLQIDQF\WKDWWKHIXOOIRUFHRIDP\WKLVIHOWDQGLWVSHULRGRIOX[XULDQW
GHYHORSPHQWGDWHVIURPWKHWLPHZKHQLWVSK\VLFDOVLJQLILFDQFHLVORVWRUREVFXUHG,WZDVEHFDXVHWKH*UHHNKDG
IRUJRWWHQWKDW=HXVPHDQWWKHEULJKWVN\WKDWKHFRXOGPDNHKLPNLQJRYHUDQDQWKURSRPRUSKLF2O\PSRV7KH+LQGX
'\DXVZKRFDUULHGKLVVLJQLILFDQFHLQKLVQDPHDVSODLQO\DVWKH*UHHN+HOLRVQHYHUDWWDLQHGVXFKDQH[DOWHGSRVLWLRQ
KH\LHOGHGWRGHLWLHVRIOHVVREYLRXVSHGLJUHHVXFKDV%UDKPDDQG9LVKQX
6LQFHWKHUHIRUHWKHP\WKWHOOHUVUHFRXQWHGPHUHO\WKHZRQGHUIXOVWRULHVZKLFKWKHLURZQQXUVHVDQGJUDQGPDVKDGWROG
WKHPDQGKDGQRLQWHQWLRQRIZHDYLQJVXEWOHDOOHJRULHVRUZUDSSLQJXSDSK\VLFDOWUXWKLQP\VWLFHPEOHPVLWIROORZV
WKDWWKH\ZHUHQRWERXQGWRDYRLGLQFRQJUXLWLHVRUWRSUHVHUYHDSKLORVRSKLFDOV\PPHWU\LQWKHLUQDUUDWLYHV,QWKHJUHDW
PDMRULW\RIFRPSOH[P\WKVQRVXFKV\PPHWU\LVWREHIRXQG$VFRUHRIGLIIHUHQWP\WKLFDOFRQFHSWLRQVZRXOGJHW
ZURXJKWLQWRWKHVDPHVWRU\DQGWKHDWWHPSWWRSXOOWKHPDSDUWDQGFRQVWUXFWDVLQJOHKDUPRQLRXVV\VWHPRI
FRQFHSWLRQVRXWRIWKHSLHFHVPXVWRIWHQHQGLQLQJHQLRXVDEVXUGLW\,I2G\VVHXVLVXQTXHVWLRQDEO\WKHVXQVRLVWKHH\H
RI3RO\SKHPRVZKLFK2G\VVHXVSXWVRXW>@%XWWKH*UHHNSRHWNQHZQRWKLQJRIWKHLQFRQJUXLW\IRUKHZDVWKLQNLQJ
RQO\RIDVXSHUKXPDQKHURIUHHLQJKLPVHOIIURPDJLDQWFDQQLEDOKHNQHZQRWKLQJRI6DQVNULWRURIFRPSDUDWLYH
P\WKRORJ\DQGWKHVRXUFHVRIKLVP\WKVZHUHDVFRPSOHWHO\KLGGHQIURPKLVYLHZDVWKHVRXUFHVRIWKH1LOH
>@³,I3RO\SKHPRV¶VH\HEHWKHVXQWKHQ2G\VVHXVWKHVRODUKHURH[WLQJXLVKHVKLPVHOIDYHU\SULPLWLYHLQVWDQFHRI
VXLFLGH´0DKDII\3UROHJRPHQDS6HHDOVR%URZQ3RVHLGRQSS7KLVREMHFWLRQZRXOGEHUHOHYDQWRQO\LQ
FDVH+RPHUZHUHVXSSRVHGWREHFRQVWUXFWLQJDQDOOHJRU\ZLWKHQWLUHNQRZOHGJHRILWVPHDQLQJ,WKDVQRYDOLGLW\
ZKDWHYHUZKHQZHUHFROOHFWWKDW+RPHUFRXOGKDYHNQRZQQRWKLQJRIWKHLQFRQJUXLW\
:HQHHGQRWEHVXUSULVHGWKHQWRILQGWKDWLQRQHYHUVLRQRIWKHVFKDPLUP\WKWKHFORXGLVWKHELUGZKLFKFDUULHVWKH
ZRUPZKLOHLQDQRWKHUYHUVLRQWKHFORXGLVWKHURFNRUPRXQWDLQZKLFKWKHWDOLVPDQFOHDYHVRSHQQRUQHHGZHZRQGHU
DWLWLIZHILQGVWRULHVLQZKLFKWKHWZRFRQFHSWLRQVDUHPLQJOHGWRJHWKHUZLWKRXWUHJDUGWRDQLQFRQJUXLW\ZKLFKLQWKH
PLQGRIWKHP\WKWHOOHUQRORQJHUH[LVWV>@
>@7KH6DQVNULWP\WKWHOOHULQGHHGPL[HVXSKLVPDWHULDOVLQDZD\ZKLFKVHHPVOXGLFURXVWRD:HVWHUQUHDGHU+H
GHVFULEHV,QGUD WKHVXQJRG DVQRWRQO\FOHDYLQJWKHFORXGPRXQWDLQVZLWKKLVVZRUGEXWDOVRFXWWLQJRIIWKHLUZLQJV
DQGKXUOLQJWKHPIURPWKHVN\6HH%XUQRXI%KDJDYDWD3XUDQD9,
,QHDUO\$U\DQP\WKRORJ\WKHUHLVQRWKLQJE\ZKLFKWKHFORXGVDUHPRUHIUHTXHQWO\UHSUHVHQWHGWKDQE\URFNVRU
PRXQWDLQV6XFKZHUHWKH6\PSOHJDGHVZKLFKFKDUPHGE\WKHKDUSRIWKHZLQGJRG2USKHXVSDUWHGWRPDNHZD\IRU
WKHWDONLQJVKLS$UJRZLWKLWVFUHZRIVRODUKHURHV>@6XFKWRRZHUHWKHPRXQWDLQV2VVDDQG3HOLRQZKLFKWKH
JLDQWVSLOHGXSRQHXSRQDQRWKHULQWKHLULPSLRXVDVVDXOWXSRQ=HXVWKHORUGRIWKHEULJKWVN\$V0U%DULQJ*RXOG
REVHUYHV³7KHDQFLHQW$U\DQKDGWKHVDPHQDPHIRUFORXGDQGPRXQWDLQ7RKLPWKHSLOHVRIYDSRXURQWKHKRUL]RQ
ZHUHVROLNH$OSLQHUDQJHVWKDWKHKDGEXWRQHZRUGZKHUHE\WRGHVLJQDWHERWK>@7KHVHJUHDWPRXQWDLQVRIKHDYHQ
ZHUHRSHQHGE\WKHOLJKWQLQJ,QWKHVXGGHQIODVKKHEHKHOGWKHGD]]OLQJVSOHQGRXUZLWKLQEXWRQO\IRUDPRPHQWDQG
WKHQZLWKDFUDVKWKHFHOHVWLDOURFNVFORVHGDJDLQ%HOLHYLQJWKHVHYDSRURXVSLOHVWRFRQWDLQUHVSOHQGHQWWUHDVXUHVRI
ZKLFKSDUWLDOJOLPSVHZDVREWDLQHGE\PRUWDOVLQDPRPHQWDU\JOHDPWDOHVZHUHVSHHGLO\IRUPHGUHODWLQJWKH
DGYHQWXUHVRIVRPHZKRKDGVXFFHHGHGLQHQWHULQJWKHVHWUHDVXUHPRXQWDLQV´
>@0U7\ORURIIHUVDGLIIHUHQWDQGSRVVLEO\DEHWWHUH[SODQDWLRQRIWKH6\PSOHJDGHVDVWKHJDWHVRI1LJKWWKURXJK
ZKLFKWKHVRODUVKLSKDYLQJSDVVHGVXFFHVVIXOO\RQFHPD\KHQFHIRUWKSDVVIRUHYHU6HHWKHGHWDLOVRIWKHHYLGHQFHLQ
KLV3ULPLWLYH&XOWXUH,
>@7KH6DQVNULWSDUYDWDDEXOJLQJRULQIODWHGERG\PHDQVERWK³FORXG´DQG³PRXQWDLQ´³,QWKH(GGDWRRWKH
URFNVVDLGWRKDYHEHHQIDVKLRQHGRXWRI<PLU¶VERQHVDUHVXSSRVHGWREHLQWHQGHGIRUFORXGV,Q2OG1RUVH.ODNNU
PHDQVERWKFORXGDQGURFNQD\WKH(QJOLVKZRUG&/28'LWVHOIKDVEHHQLGHQWLILHGZLWKWKH$QJOR6D[RQFOXGURFN
6HH-XVWL2ULHQWXQG2FFLGHQW9RO,,S´0D[0XOOHU5LJ9HGD9ROS
7KLVVXGGHQIODVKLVWKHVPLWLQJRIWKHFORXGURFNE\WKHDUURZRI$KPHGWKHUHVLVWOHVVKDPPHURI7KRUWKHVSHDURI
2GLQWKHWULGHQWRI3RVHLGRQRUWKHURGRI+HUPHV7KHIRUNHGVWUHDNRIOLJKWLVWKHDUFKHW\SHRIWKHGLYLQLQJURGLQLWV
ROGHVWIRUPWKDWLQZKLFKLWQRWRQO\LQGLFDWHVWKHKLGGHQWUHDVXUHVEXWOLNHWKHVWDIIRIWKH,OVHQVWHLQVKHSKHUGEXUVWV
RSHQWKHHQFKDQWHGFU\SWDQGUHYHDOVWKHPWRWKHDVWRQLVKHGZD\IDUHU+HQFHWKHRQHWKLQJHVVHQWLDOWRWKHGLYLQLQJ
URGIURPZKDWHYHUWUHHLWEHFKRVHQLVWKDWLWVKDOOEHIRUNHG
,WLVQRWGLIILFXOWWRFRPSUHKHQGWKHUHDVRQVZKLFKOHGWKHDQFLHQWVWRVSHDNRIWKHOLJKWQLQJDVDZRUPVHUSHQWWULGHQW
DUURZRUIRUNHGZDQGEXWZKHQZHLQTXLUHZK\LWZDVVRPHWLPHVV\PEROL]HGDVDIORZHURUOHDIRUZKHQZHVHHNWR
DVFHUWDLQZK\FHUWDLQWUHHVVXFKDVWKHDVKKD]HOZKLWHWKRUQDQGPLVWOHWRHZHUHVXSSRVHGWREHLQDFHUWDLQVHQVH
HPERGLPHQWVRILWZHDUHHQWHULQJXSRQDVXEMHFWWRRFRPSOLFDWHGWREHVDWLVIDFWRULO\WUHDWHGZLWKLQWKHOLPLWVRIWKH
SUHVHQWSDSHU,WKDVEHHQVDLGWKDWWKHSRLQWRIUHVHPEODQFHEHWZHHQDFRZDQGDFRPHWWKDWERWKKDYHWDLOVZDVTXLWH
HQRXJKIRUWKHSULPLWLYHZRUGPDNHULWZDVFHUWDLQO\HQRXJKIRUWKHSULPLWLYHP\WKWHOOHU>@6RPHWLPHVWKHSLQQDWH
VKDSHRIDOHDIWKHIRUNLQJRIDEUDQFKWKHWULFOHIWFRUROODRUHYHQWKHUHGFRORXURIDIORZHUVHHPVWRKDYHEHHQ
VXIILFLHQWWRGHWHUPLQHWKHDVVRFLDWLRQRILGHDV7KH+LQGXFRPPHQWDWRUVRIWKH9HGDFHUWDLQO\OD\JUHDWVWUHVVRQWKH
IDFWWKDWWKHSDODVDRQHRIWKHLUOLJKWQLQJWUHHVLVWULGHQWOHDYHG7KHPLVWOHWRHEUDQFKLVIRUNHGOLNHDZLVKERQH>@
DQGVRLVWKHVWHPZKLFKEHDUVWKHIRUJHWPHQRWRUZLOGVFRUSLRQJUDVV6RWRRWKHOHDYHVRIWKH+LQGXILFXVUHOLJLRVD
UHVHPEOHORQJVSHDUKHDGV>@%XWLQPDQ\FDVHVLWLVLPSRVVLEOHIRUXVWRGHWHUPLQHZLWKFRQILGHQFHWKHUHDVRQV
ZKLFKPD\KDYHJXLGHGSULPLWLYHPHQLQWKHLUFKRLFHRIWDOLVPDQLFSODQWV,QWKHFDVHRIVRPHRIWKHVHVWRULHVLWZRXOG
QRGRXEWEHZDVWLQJLQJHQXLW\WRDWWHPSWWRDVVLJQDP\WKLFDORULJLQIRUHDFKSRLQWRIGHWDLO7KHRLQWPHQWRIWKH
GHUYLVHIRULQVWDQFHLQWKH$UDELDQWDOHKDVSUREDEO\QRVSHFLDOP\WKLFDOVLJQLILFDQFHEXWZDVUDWKHUVXJJHVWHGE\WKH
H[LJHQFLHVRIWKHVWRU\LQDQDJHZKHQWKHROGP\WKRORJLHVZHUHVRIDUGLVLQWHJUDWHGDQGPLQJOHGWRJHWKHUWKDWDQ\RQH
WDOLVPDQZRXOGVHUYHDVZHOODVDQRWKHUWKHSXUSRVHVRIWKHQDUUDWRU%XWWKHOLJKWQLQJSODQWVRI,QGR(XURSHDQIRON
ORUHFDQQRWEHWKXVVXPPDULO\GLVSRVHGRIIRUKRZHYHUGLIILFXOWLWPD\EHIRUXVWRSHUFHLYHDQ\FRQQHFWLRQEHWZHHQ
WKHPDQGWKHFHOHVWLDOSKHQRPHQDZKLFKWKH\UHSUHVHQWWKHP\WKVFRQFHUQLQJWKHPDUHVRQXPHURXVDQGH[SOLFLWDVWR
UHQGHULWFHUWDLQWKDWVRPHVXFKFRQQHFWLRQZDVLPDJLQHGE\WKHP\WKPDNHUV7KHVXSHUVWLWLRQFRQFHUQLQJWKHKDQGRI
JORU\LVQRWVRKDUGWRLQWHUSUHW,QWKHP\WKRORJ\RIWKH)LQQVWKHVWRUPFORXGLVDEODFNPDQZLWKDEULJKWFRSSHU
KDQGDQGLQ+LQGXVWDQ,QGUD6DYLWDUWKHGHLW\ZKRVOD\VWKHGHPRQRIWKHFORXGLVJROGHQKDQGHG7KHVHOHFWLRQRI
WKHKDQGRIDPDQZKRKDVEHHQKDQJHGLVSUREDEO\GXHWRWKHVXSHUVWLWLRQZKLFKUHJDUGHGWKHVWRUPJRG2GLQDV
SHFXOLDUO\WKHORUGRIWKHJDOORZV7KHPDQZKRLVUDLVHGXSRQWKHJDOORZVLVSODFHGGLUHFWO\LQWKHWUDFNRIWKHZLOG
KXQWVPDQZKRFRPHVZLWKKLVKRXQGVWRFDUU\RIIWKHYLFWLPDQGKHQFHWKHQRWLRQZKLFKDFFRUGLQJWR0U.HOO\LV
³YHU\FRPPRQLQ*HUPDQ\DQGQRWH[WLQFWLQ(QJODQG´WKDWHYHU\VXLFLGHE\KDQJLQJLVIROORZHGE\DVWRUP
>@,QDFFRUGDQFHZLWKWKHPHGLDHYDO³GRFWULQHRIVLJQDWXUHV´LWZDVPDLQWDLQHG³WKDWWKHKDUGVWRQ\VHHGVRIWKH
*URPZHOOPXVWEHJRRGIRUJUDYHODQGWKHNQRWW\WXEHUVRIVFURSKXODULDIRUVFURIXORXVJODQGVZKLOHWKHVFDO\SDSSXV
RIVFDOLRVDVKRZHGLWWREHDVSHFLILFLQOHSURXVGLVHDVHVWKHVSRWWHGOHDYHVRISXOPRQDULDWKDWLWZDVDVRYHUHLJQ
UHPHG\IRUWXEHUFXORXVOXQJVDQGWKHJURZWKRIVD[LIUDJHLQWKHILVVXUHVRIURFNVWKDWLWZRXOGGLVLQWHJUDWHVWRQHLQWKH
EODGGHU´3ULRU3RSXODU1DPHVRI%ULWLVK3ODQWV,QWURGS[LY6HHDOVR&KDSLHO/D'RFWULQHGHV6LJQDWXUHV3DULV

>@,QGHHGWKHZLVKERQHRUIRUNHGFODYLFOHRIDIRZOLWVHOIEHORQJVWRWKHVDPHIDPLO\RIWDOLVPDQVDVWKHGLYLQLQJ
URG
>@7KHDVKRQWKHRWKHUKDQGKDVEHHQIURPWLPHLPPHPRULDOXVHGIRUVSHDUVLQPDQ\SDUWVRIWKH$U\DQGRPDLQ
7KHZRUGRHVFPHDQWLQ$QJOR6D[RQLQGLIIHUHQWO\³DVKWUHH´RU³VSHDU´DQGWKHVDPHLVRUKDVEHHQWUXHRIWKH
)UHQFKIUHVQHDQGWKH*UHHNPHOLD7KHURRWRIRHVFDSSHDUVLQWKH6DQVNULWDV³WRWKURZ´RU³ODQFH´ZKHQFHDVD³D
ERZ´DQGDVDQD³DQDUURZ´6HH3LFWHW2ULJLQHV,QGR(XURSHHQQHV,
7KHSDWKVRIFRPSDUDWLYHP\WKRORJ\DUHGHYLRXVEXWZHKDYHQRZSXUVXHGWKHPORQJHQRXJK,EHOLHYHWRKDYH
DUULYHGDWDWROHUDEO\FOHDUXQGHUVWDQGLQJRIWKHRULJLQDOQDWXUHRIWKHGLYLQLQJURG,WVSRZHURIUHYHDOLQJWUHDVXUHVKDV
EHHQVXIILFLHQWO\H[SODLQHGDQGLWVDIILQLW\IRUZDWHUUHVXOWVVRREYLRXVO\IURPWKHFKDUDFWHURIWKHOLJKWQLQJP\WKDVWR
QHHGQRIXUWKHUFRPPHQW%XWLWVSRZHURIGHWHFWLQJFULPLQDOVVWLOOUHPDLQVWREHDFFRXQWHGIRU
,Q*UHHNP\WKRORJ\WKHEHLQJZKLFKGHWHFWVDQGSXQLVKHVFULPHLVWKH(ULQ\VWKHSURWRW\SHRIWKH/DWLQ)XU\ILJXUHG
E\ODWHZULWHUVDVDKRUULEOHPRQVWHUZLWKVHUSHQWORFNV%XWWKLVLVDGHJUDGDWLRQRIWKHRULJLQDOFRQFHSWLRQ7KHQDPH
(ULQ\VGLGQRWRULJLQDOO\PHDQ)XU\DQGLWFDQQRWEHH[SODLQHGIURP*UHHNVRXUFHVDORQH,WDSSHDUVLQ6DQVNULWDV
6DUDQ\XDZRUGZKLFKVLJQLILHVWKHOLJKWRIPRUQLQJFUHHSLQJRYHUWKHVN\$QGWKXVZHDUHOHGWRWKHVWDUWOLQJ
FRQFOXVLRQWKDWDVWKHOLJKWRIPRUQLQJUHYHDOVWKHHYLOGHHGVGRQHXQGHUWKHFRYHURIQLJKWVRWKHORYHO\'DZQRU
(ULQ\VFDPHWREHUHJDUGHGXQGHURQHDVSHFWDVWKHWHUULEOHGHWHFWRUDQGDYHQJHURILQLTXLW\<HWVWDUWOLQJDVWKH
FRQFOXVLRQLVLWLVEDVHGRQHVWDEOLVKHGODZVRISKRQHWLFFKDQJHDQGFDQQRWEHJDLQVDLG
%XWZKDWKDVWKHDYHQJLQJGD\EUHDNWRGRZLWKWKHOLJKWQLQJDQGWKHGLYLQLQJURG"7RWKHPRGHUQPLQGWKHDVVRFLDWLRQ
LVQRWDQREYLRXVRQHLQDQWLTXLW\LWZDVRWKHUZLVH0\WKVRIWKHGD\EUHDNDQGP\WKVRIWKHOLJKWQLQJRIWHQUHVHPEOH
HDFKRWKHUVRFORVHO\WKDWH[FHSWE\DGHOLFDWHSKLORORJLFDODQDO\VLVLWLVGLIILFXOWWRGLVWLQJXLVKWKHRQHIURPWKHRWKHU
7KHUHDVRQLVREYLRXV,QHDFKFDVHWKHSKHQRPHQRQWREHH[SODLQHGLVWKHVWUXJJOHEHWZHHQWKHGD\JRGDQGRQHRIWKH
GHPRQVRIGDUNQHVV7KHUHLVHVVHQWLDOO\QRGLVWLQFWLRQWRWKHPLQGRIWKHSULPLWLYHPDQEHWZHHQWKH3DQLVZKRVWHDO
,QGUD¶VEULJKWFRZVDQGNHHSWKHPLQDGDUNFDYHUQDOOQLJKWDQGWKHWKURWWOLQJVQDNH$KLRU(FKLGQDZKRLPSULVRQV
WKHZDWHUVLQWKHVWURQJKROGRIWKHWKXQGHUFORXGDQGFRYHUVWKHHDUWKZLWKDVKRUWOLYHGGDUNQHVV$QGVRWKHSRLVRQHG
DUURZVRI%HOOHURSKRQZKLFKVOD\WKHVWRUPGUDJRQGLIIHULQQRHVVHQWLDOUHVSHFWIURPWKHVKDIWVZLWKZKLFK2G\VVHXV
VODXJKWHUVWKHQLJKWGHPRQVZKRKDYHIRUWHQORQJKRXUVEHVHWKLVPDQVLRQ7KXVWKHGLYLQLQJURGUHSUHVHQWLQJDVLW
GRHVWKHZHDSRQRIWKHJRGRIGD\FRPHVOHJLWLPDWHO\HQRXJKE\LWVIXQFWLRQRIGHWHFWLQJDQGDYHQJLQJFULPH
%XWWKHOLJKWQLQJQRWRQO\UHYHDOVVWUDQJHWUHDVXUHVDQGJLYHVZDWHUWRWKHWKLUVW\ODQGDQGPDNHVSODLQZKDWLVGRLQJ
XQGHUFRYHURIGDUNQHVVLWDOVRVRPHWLPHVNLOOVEHQXPEVRUSDUDO\]HV7KXVWKHKHDGRIWKH*RUJRQ0HGXVDWXUQVLQWR
VWRQHWKRVHZKRORRNXSRQLW7KXVWKHRLQWPHQWRIWKHGHUYLVHLQWKHWDOHRI%DED$EGDOODKQRWRQO\UHYHDOVDOOWKH
WUHDVXUHVRIWKHHDUWKEXWLQVWDQWO\WKHUHDIWHUEOLQGVWKHXQKDSS\PDQZKRWHVWVLWVSRZHUV$QGWKXVWKHKDQGRIJORU\
ZKLFKEXUVWVRSHQEDUVDQGEROWVEHQXPEVDOVRWKRVHZKRKDSSHQWREHQHDULW,QGHHGIHZRIWKHIDYRXUHGPRUWDOV
ZKRZHUHDOORZHGWRYLVLWWKHFDYHUQVRSHQHGE\VHVDPHRUWKHOXFNIORZHUHVFDSHGZLWKRXWGLVDVWHU7KHPRQNLVKWDOH
RI³7KH&OHUNDQGWKH,PDJH´LQZKLFKWKHSULPHYDOP\WKLFDOIHDWXUHVDUHFXULRXVO\GLVWRUWHGZHOOLOOXVWUDWHVWKLV
SRLQW
,QWKHFLW\RI5RPHWKHUHIRUPHUO\VWRRGDQLPDJHZLWKLWVULJKWKDQGH[WHQGHGDQGRQLWVIRUHILQJHUWKHZRUGV³VWULNH
KHUH´0DQ\ZLVHPHQSX]]OHGLQYDLQRYHUWKHPHDQLQJRIWKHLQVFULSWLRQEXWDWODVWDFHUWDLQSULHVWREVHUYHGWKDW
ZKHQHYHUWKHVXQVKRQHRQWKHILJXUHWKHVKDGRZRIWKHILQJHUZDVGLVFHUQLEOHRQWKHJURXQGDWDOLWWOHGLVWDQFHIURP
WKHVWDWXH+DYLQJPDUNHGWKHVSRWKHZDLWHGXQWLOPLGQLJKWDQGWKHQEHJDQWRGLJ$WODVWKLVVSDGHVWUXFNXSRQ
VRPHWKLQJKDUG,WZDVDWUDSGRRUEHORZZKLFKDIOLJKWRIPDUEOHVWHSVGHVFHQGHGLQWRDVSDFLRXVKDOOZKHUHPDQ\
PHQZHUHVLWWLQJLQVROHPQVLOHQFHDPLGSLOHVRIJROGDQGGLDPRQGVDQGORQJURZVRIHQDPHOOHGYDVHV%H\RQGWKLVKH
IRXQGDQRWKHUURRPDJ\QDHFLXPILOOHGZLWKEHDXWLIXOZRPHQUHFOLQLQJRQULFKO\HPEURLGHUHGVRIDV\HWKHUHWRRDOO
ZDVSURIRXQGVLOHQFH$VXSHUEEDQTXHWLQJKDOOQH[WPHWKLVDVWRQLVKHGJD]HWKHQDVLOHQWNLWFKHQWKHQJUDQDULHV
ORDGHGZLWKIRUDJHWKHQDVWDEOHFURZGHGZLWKPRWLRQOHVVKRUVHV7KHZKROHSODFHZDVEULOOLDQWO\OLJKWHGE\D
FDUEXQFOHZKLFKZDVVXVSHQGHGLQRQHFRUQHURIWKHUHFHSWLRQURRPDQGRSSRVLWHVWRRGDQDUFKHUZLWKKLVERZDQG
DUURZUDLVHGLQWKHDFWRIWDNLQJDLPDWWKHMHZHO$VWKHSULHVWSDVVHGEDFNWKURXJKWKLVKDOOKHVDZDGLDPRQGKLOWHG
NQLIHO\LQJRQDPDUEOHWDEOHDQGZLVKLQJWRFDUU\DZD\VRPHWKLQJZKHUHZLWKWRDFFUHGLWKLVVWRU\KHUHDFKHGRXWKLV
KDQGWRWDNHLWEXWQRVRRQHUKDGKHWRXFKHGLWWKDQDOOZDVGDUN7KHDUFKHUKDGVKRWZLWKKLVDUURZWKHEULJKWMHZHO
ZDVVKLYHUHGLQWRDWKRXVDQGSLHFHVWKHVWDLUFDVHKDGIOHGDQGWKHSULHVWIRXQGKLPVHOIEXULHGDOLYH>@
>@&RPSDUH6SHQVHU¶VVWRU\RI6LU*X\RQLQWKH³)DHU\
4XHHQ´ZKHUHKRZHYHUWKHNQLJKWIDUHVEHWWHUWKDQWKLVSRRU
SULHVW8VXDOO\WKHVHOLJKWQLQJFDYHUQVZHUHOLNH,[LRQ¶V
WUHDVXUHKRXVHLQWRZKLFKQRQHPLJKWORRNDQGOLYH7KLV
FRQFHSWLRQLVWKHIRXQGDWLRQRISDUWRIWKHVWRU\RI
%OXH%HDUGDQGRIWKH$UDELDQWDOHRIWKHWKLUGRQHH\HG
&DOHQGHU
8VXDOO\KRZHYHUWKRXJKWKHOLJKWQLQJLVZRQWWRVWULNHGHDGZLWKLWVEDVLOLVNJODQFHWKRVHZKRUDVKO\HQWHULWV
P\VWHULRXVFDYHUQVLWLVUHJDUGHGUDWKHUDVDEHQHIDFWRUWKDQDVDGHVWUR\HU7KHIHHOLQJVZLWKZKLFKWKHP\WKPDNLQJ
DJHFRQWHPSODWHGWKHWKXQGHUVKRZHUDVLWUHYLYHGWKHHDUWKSDUDO\]HGE\DORQJGURXJKWDUHVKRZQLQWKHP\WKRI
2LGLSRXV7KH6SKLQ[ZKRVHQDPHVLJQLILHV³WKHRQHZKRELQGV´LVWKHGHPRQZKRVLWVRQWKHFORXGURFNDQG
LPSULVRQVWKHUDLQPXWWHULQJGDUNVD\LQJVZKLFKQRQHEXWWKHDOONQRZLQJVXQPD\XQGHUVWDQG7KHIODVKRIVRODUOLJKW
ZKLFKFDXVHVWKHPRQVWHUWRIOLQJKHUVHOIGRZQIURPWKHFOLIIZLWKDIHDUIXOURDUUHVWRUHVWKHODQGWRSURVSHULW\%XW
EHVLGHVWKLVWKHDVVRFLDWLRQRIWKHWKXQGHUVWRUPZLWKWKHDSSURDFKRIVXPPHUKDVSURGXFHGPDQ\P\WKVLQZKLFKWKH
OLJKWQLQJLVV\PEROL]HGDVWKHOLIHUHQHZLQJZDQGRIWKHYLFWRULRXVVXQJRG+HQFHWKHXVHRIWKHGLYLQLQJURGLQWKH
FXUHRIGLVHDVHDQGKHQFHWKHODUJHIDPLO\RIVFKDPLUP\WKVLQZKLFKWKHGHDGDUHUHVWRUHGWROLIHE\OHDYHVRUKHUEV
,Q*ULPP¶VWDOHRIWKH7KUHH6QDNH/HDYHV´DSULQFHLVEXULHGDOLYH OLNH6LQGEDG ZLWKKLVGHDGZLIHDQGVHHLQJD
VQDNHDSSURDFKLQJKHUERG\KHFXWVLWLQWKUHHSLHFHV3UHVHQWO\DQRWKHUVQDNHFUDZOLQJIURPWKHFRUQHUVDZWKHRWKHU
O\LQJGHDGDQGJRLQJDZD\VRRQUHWXUQHGZLWKWKUHHJUHHQOHDYHVLQLWVPRXWKWKHQOD\LQJWKHSDUWVRIWKHERG\
WRJHWKHUVRDVWRMRLQLWSXWRQHOHDIRQHDFKZRXQGDQGWKHGHDGVQDNHZDVDOLYHDJDLQ7KHSULQFHDSSO\LQJWKH
OHDYHVWRKLVZLIH¶VERG\UHVWRUHVKHUDOVRWROLIH´>@,QWKH*UHHNVWRU\WROGE\$(OLDQDQG$SROORGRURV3RO\LGRVLV
VKXWXSZLWKWKHFRUSVHRI*ODXNRVZKLFKKHLVRUGHUHGWRUHVWRUHWROLIH+HNLOOVDGUDJRQZKLFKLVDSSURDFKLQJWKH
ERG\EXWLVSUHVHQWO\DVWRQLVKHGDWVHHLQJDQRWKHUGUDJRQFRPHZLWKDEODGHRIJUDVVDQGSODFHLWXSRQLWVGHDG
FRPSDQLRQZKLFKLQVWDQWO\ULVHVIURPWKHJURXQG3RO\LGRVWDNHVWKHVDPHEODGHRIJUDVVDQGZLWKLWUHVXVFLWDWHV
*ODXNRV7KHVDPHLQFLGHQWRFFXUVLQWKH+LQGXVWRU\RI3DQFK3KXO5DQHHDQGLQ)RXTXH¶V³6LU(OLGRF´ZKLFKLV
IRXQGHGRQD%UHWRQOHJHQG
>@&R[0\WKRORJ\RIWKH$U\DQ1DWLRQV9ROS
:HQHHGQRWZRQGHUWKHQDWWKHH[WUDRUGLQDU\WKHUDSHXWLFSURSHUWLHVZKLFKDUHLQDOO$U\DQIRONORUHDVFULEHGWRWKH
YDULRXVOLJKWQLQJSODQWV,Q6ZHGHQVDQLWDU\DPXOHWVDUHPDGHRIPLVWOHWRHWZLJVDQGWKHSODQWLVVXSSRVHGWREHD
VSHFLILFDJDLQVWHSLOHSV\DQGDQDQWLGRWHIRUSRLVRQV,Q&RUQZDOOFKLOGUHQDUHSDVVHGWKURXJKKROHVLQDVKWUHHVLQ
RUGHUWRFXUHWKHPRIKHUQLD$VKURGVDUHXVHGLQVRPHSDUWVRI(QJODQGIRUWKHFXUHRIGLVHDVHGVKHHSFRZVDQG
KRUVHVDQGLQSDUWLFXODUWKH\DUHVXSSRVHGWRQHXWUDOL]HWKHYHQRPRIVHUSHQWV7KHQRWLRQWKDWVQDNHVDUHDIUDLGRIDQ
DVKWUHHLVQRWH[WLQFWHYHQLQWKH8QLWHG6WDWHV7KHRWKHUGD\,ZDVWROGQRWE\DQROGJUDQQ\EXWE\DPDQIDLUO\
HGXFDWHGDQGHQGRZHGZLWKDYHU\XQXVXDODPRXQWRIJRRGFRPPRQVHQVHWKDWDUDWWOHVQDNHZLOOVRRQHUJRWKURXJK
ILUHWKDQFUHHSRYHUDVKOHDYHVRULQWRWKHVKDGRZRIDQDVKWUHH([DFWO\WKHVDPHVWDWHPHQWLVPDGHE\3LQ\ZKRDGGV
WKDWLI\RXGUDZDFLUFOHZLWKDQDVKURGDURXQGWKHVSRWRIJURXQGRQZKLFKDVQDNHLVO\LQJWKHDQLPDOPXVWGLHRI
VWDUYDWLRQEHLQJDVHIIHFWXDOO\LPSULVRQHGDV8JROLQRLQWKHGXQJHRQDW3LVD,Q&RUQZDOOLWLVEHOLHYHGWKDWDEORZ
IURPDQDVKVWLFNZLOOLQVWDQWO\NLOODQ\VHUSHQW7KHDVKVKDUHVWKLVYLUWXHZLWKWKHKD]HODQGIHUQ$6ZHGLVKSHDVDQW
ZLOOWHOO\RXWKDWVQDNHVPD\EHGHSULYHGRIWKHLUYHQRPE\DWRXFKZLWKDKD]HOZDQGDQGZKHQDQDQFLHQW*UHHNKDG
RFFDVLRQWRPDNHKLVEHGLQWKHZRRGVKHVHOHFWHGIHUQOHDYHVLISRVVLEOHLQWKHEHOLHIWKDWWKHVPHOORIWKHPZRXOG
GULYHDZD\SRLVRQRXVDQLPDOV>@
>@.HOO\,QGR(XURSHDQ)RON/RUHSS
%XWWKHEHQHILFHQWFKDUDFWHURIWKHOLJKWQLQJDSSHDUVVWLOOPRUHFOHDUO\LQDQRWKHUFODVVRIP\WKV7RWKHSULPLWLYHPDQ
WKHVKDIWRIOLJKWFRPLQJGRZQIURPKHDYHQZDVW\SLFDORIWKHRULJLQDOGHVFHQWRIILUHIRUWKHEHQHILWDQGLPSURYHPHQW
RIWKHKXPDQUDFH7KH6LRX[,QGLDQVDFFRXQWIRUWKHRULJLQRIILUHE\DP\WKRIXQPLVWDNDEOHNLQVKLSWKH\VD\WKDW
³WKHLUILUVWDQFHVWRUREWDLQHGKLVILUHIURPWKHVSDUNVZKLFKDIULHQGO\SDQWKHUVWUXFNIURPWKHURFNVDVKHVFDPSHUHGXS
DVWRQ\KLOO´>@7KLVSDQWKHULVREYLRXVO\WKHFRXQWHUSDUWRIWKH$U\DQELUGZKLFKGURSVVFKDPLU%XWWKH$U\DQ
LPDJLQDWLRQKLWXSRQDIDUPRUHUHPDUNDEOHFRQFHSWLRQ7KHDQFLHQW+LQGXVREWDLQHGILUHE\DSURFHVVVLPLODUWRWKDW
HPSOR\HGE\&RXQW5XPIRUGLQKLVH[SHULPHQWVRQWKHJHQHUDWLRQRIKHDWE\IULFWLRQ7KH\ILUVWZRXQGDFRXSOHRI
FRUGVDURXQGDSRLQWHGVWLFNLQVXFKDZD\WKDWWKHXQZLQGLQJRIWKHRQHZRXOGZLQGXSWKHRWKHUDQGWKHQSODFLQJWKH
SRLQWRIWKHVWLFNDJDLQVWDFLUFXODUGLVNRIZRRGWZLUOHGLWUDSLGO\E\DOWHUQDWHSXOOVRQWKHWZRVWULQJV7KLVLQVWUXPHQW
LVFDOOHGDFKDUNDQGLVVWLOOXVHGLQ6RXWK$IULFD>@LQ$XVWUDOLDLQ6XPDWUDDQGDPRQJWKH9HGGDKVRI&H\ORQ7KH
5XVVLDQVIRXQGLWLQ.DPWFKDWNDDQGLWZDVIRUPHUO\HPSOR\HGLQ$PHULFDIURP/DEUDGRUWRWKH6WUDLWVRI
0DJHOODQ>@7KH+LQGXVFKXUQHGPLONE\DVLPLODUSURFHVV>@DQGLQRUGHUWRH[SODLQWKHWKXQGHUVWRUPD6DQVNULW
SRHPWHOOVKRZ³RQFHXSRQDWLPHWKH'HYDVRUJRGVDQGWKHLURSSRQHQWVWKH$VXUDVPDGHDWUXFHDQGMRLQHG
WRJHWKHULQFKXUQLQJWKHRFHDQWRSURFXUHDPULWDWKHGULQNRILPPRUWDOLW\7KH\WRRN0RXQW0DQGDUDIRUDFKXUQLQJ
VWLFNDQGZUDSSLQJWKHJUHDWVHUSHQW6HVKDURXQGLWIRUDURSHWKH\PDGHWKHPRXQWDLQVSLQURXQGWRDQGIURWKH
'HYDVSXOOLQJDWWKHVHUSHQW¶VWDLODQGWKH$VXUDVDWLWVKHDG´>@,QWKLVP\WKWKHFKXUQLQJVWLFNZLWKLWVIO\LQJ
VHUSHQWFRUGVLVWKHOLJKWQLQJDQGWKHDUPULWDRUGULQNRILPPRUWDOLW\LVVLPSO\WKHUDLQZDWHUZKLFKLQ$U\DQIRON
ORUHSRVVHVVHVWKHVDPHKHDOLQJYLUWXHVDVWKHOLJKWQLQJ³,Q6FODYRQLFP\WKVLWLVWKHZDWHURIOLIHZKLFKUHVWRUHVWKH
GHDGHDUWKDZDWHUEURXJKWE\DELUGIURPWKHGHSWKVRIDJORRP\FDYH´>@,WLVWKHFHOHVWLDOVRPDRUPHDGZKLFK
,QGUDORYHVWRGULQNLWLVWKHDPEURVLDOQHFWDURIWKH2O\PSLDQJRGVLWLVWKHFKDUPHGZDWHUZKLFKLQWKH$UDELDQ
1LJKWVUHVWRUHVWRKXPDQVKDSHWKHYLFWLPVRIZLFNHGVRUFHUHUVDQGLWLVWKHHOL[LURIOLIHZKLFKPHGLDHYDOSKLORVRSKHUV
WULHGWRGLVFRYHUDQGLQTXHVWRIZKLFK3RQFHGH/HRQWUDYHUVHGWKHZLOGVRI)ORULGD>@
>@%ULQWRQ0\WKVRIWKH1HZ:RUOGS
>@&DOODZD\=XOX1XUVHU\7DOHV,1RWH
>@7\ORU(DUO\+LVWRU\RI0DQNLQGS3ULPLWLYH&XOWXUH9RO,,S'DUZLQ1DWXUDOLVW¶V9R\DJHS
³-DFN\¶VQH[WSURFHHGLQJZDVWRJHWVRPHGU\VWLFNVDQGZRRGDQGSUHSDUHDILUHZKLFKWR*HRUJH¶VDVWRQLVKPHQWKH
OLJKWHGWKXV+HJRWDEORFNRIZRRGLQWKHPLGGOHRIZKLFKKHPDGHDKROHWKHQKHFXWDQGSRLQWHGDORQJVWLFNDQG
LQVHUWLQJWKHSRLQWLQWRWKHEORFNZRUNHGLWURXQGEHWZHHQKLVSDOPVIRUVRPHWLPHDQGZLWKLQFUHDVLQJUDSLGLW\
3UHVHQWO\WKHUHFDPHDVPHOORIEXUQLQJZRRGDQGVRRQDIWHULWEXUVWLQWRDIODPHDWWKHSRLQWRIFRQWDFW-DFN\FXW
VOLFHVRIVKDUNDQGURDVWHGWKHP´²5HDGH1HYHUWRR/DWHWR0HQGFKDS[[[YLLL
>@7KHSURGXFWLRQRIILUHE\WKHGULOOLVRIWHQFDOOHGFKXUQLQJHJ³+HWRRNWKHXYDWL>FKDUN@DQGVDWGRZQDQG
FKXUQHGLWDQGNLQGOHGDILUH´&DOODZD\=XOX1XUVHU\7DOHV,
>@.HOO\,QGR(XURSHDQ)RON/RUHS%XUQRXI%KDJDYDWD3XUDQD9,,,
>@%DULQJ*RXOG&XULRXV0\WKVS
>@,WLVDOVRWKHUHJHQHUDWLQJZDWHURIEDSWLVPDQGWKH³KRO\ZDWHU³RIWKH5RPDQ&DWKROLF
7KHPRVWLQWHUHVWLQJSRLQWLQWKLV+LQGXP\WKLVWKHQDPHRIWKHSHDNHGPRXQWDLQ0DQGDUDRU0DQWKDUDZKLFKWKH
JRGVDQGGHYLOVWRRNIRUWKHLUFKXUQLQJVWLFN7KHZRUGPHDQV³DFKXUQLQJVWLFN´DQGLWDSSHDUVDOVRZLWKDSUHIL[HG
SUHSRVLWLRQLQWKHQDPHRIWKHILUHGULOOSUDPDQWKD1RZ.XKQKDVSURYHGWKDWWKLVQDPHSUDPDQWKDLV
HW\PRORJLFDOO\LGHQWLFDOZLWK3URPHWKHXVWKHQDPHRIWKHEHQHILFHQW7LWDQZKRVWROHILUHIURPKHDYHQDQGEHVWRZHGLW
XSRQPDQNLQGDVWKHULFKHVWRIERRQV7KLVVXEOLPHSHUVRQDJHZDVRULJLQDOO\QRWKLQJEXWWKHFHOHVWLDOGULOOZKLFK
FKXUQVILUHRXWRIWKHFORXGVEXWWKH*UHHNVKDGVRHQWLUHO\IRUJRWWHQKLVRULJLQWKDWWKH\LQWHUSUHWHGKLVQDPHDV
PHDQLQJ³WKHRQHZKRWKLQNVEHIRUHKDQG´DQGDFFUHGLWHGKLPZLWKDEURWKHU(SLPHWKHXVRU³WKHRQHZKRWKLQNVWRR
ODWH´7KH*UHHNVKDGDGRSWHGDQRWKHUQDPHWU\SDQRQIRUWKHLUILUHGULOODQGWKXVWKHSULPLWLYHFKDUDFWHURI
3URPHWKHXVEHFDPHREVFXUHG
,KDYHVDLGDERYHWKDWLWZDVUHJDUGHGDVDEVROXWHO\HVVHQWLDOWKDWWKHGLYLQLQJURGVKRXOGEHIRUNHG7RWKLVUXOH
KRZHYHUWKHUHZDVRQHH[FHSWLRQDQGLIDQ\IXUWKHUHYLGHQFHEHQHHGHGWRFRQYLQFHWKHPRVWVFHSWLFDOWKDWWKH
GLYLQLQJURGLVQRWKLQJEXWDV\PERORIWKHOLJKWQLQJWKDWH[FHSWLRQZLOOIXUQLVKVXFKHYLGHQFH)RUWKLVH[FHSWLRQDO
NLQGRIGLYLQLQJURGZDVPDGHRIDSRLQWHGVWLFNURWDWLQJLQDEORFNRIZRRGDQGLWZDVWKHSUHVHQFHRIKLGGHQZDWHURU
WUHDVXUHZKLFKZDVVXSSRVHGWRH[FLWHWKHURWDWRU\PRWLRQ
,QWKHP\WKVUHODWLQJWR3URPHWKHXVWKHOLJKWQLQJJRGDSSHDUVDVWKHRULJLQDWRURIFLYLOL]DWLRQVRPHWLPHVDVWKHFUHDWRU
RIWKHKXPDQUDFHDQGDOZD\VDVLWVIULHQG>@VXIIHULQJLQLWVEHKDOIWKHPRVWIHDUIXOWRUWXUHVDWWKHKDQGVRIWKH
MHDORXV=HXV,QRQHVWRU\KHFUHDWHVPDQE\PDNLQJDFOD\LPDJHDQGLQIXVLQJLQWRLWDVSDUNRIWKHILUHZKLFKKHKDG
EURXJKWIURPKHDYHQLQDQRWKHUVWRU\KHLVKLPVHOIWKHILUVWPDQ,QWKH3HORSRQQHVLDQP\WK3KRURQHXVZKRLV
3URPHWKHXVXQGHUDQRWKHUQDPHLVWKHILUVWPDQDQGKLVPRWKHUZDVDQDVKWUHH,Q1RUVHP\WKRORJ\DOVRWKHJRGV
ZHUHVDLGWRKDYHPDGHWKHILUVWPDQRXWRIWKHDVKWUHH<JJGUDVLO7KHDVVRFLDWLRQRIWKHKHDYHQO\ILUHZLWKWKHOLIH
JLYLQJIRUFHVRIQDWXUHLVYHU\FRPPRQLQWKHP\WKVRIERWKKHPLVSKHUHVDQGLQYLHZRIWKHIDFWVDOUHDG\FLWHGLWQHHG
QRWVXUSULVHXV+HQFHWKH+LQGX$JQLDQGWKH1RUVH7KRUZHUHSDWURQVRIPDUULDJHDQGLQ1RUZD\WKHPRVWOXFN\
GD\RQZKLFKWREHPDUULHGLVVWLOOVXSSRVHGWREH7KXUVGD\ZKLFKLQROGWLPHVZDVWKHGD\RIWKHILUHJRG>@+HQFH
WKHOLJKWQLQJSODQWVKDYHGLYHUVYLUWXHVLQPDWWHUVSHUWDLQLQJWRPDUULDJH7KH5RPDQVPDGHWKHLUZHGGLQJWRUFKHVRI
ZKLWHWKRUQKD]HOQXWVDUHVWLOOXVHGDOORYHU(XURSHLQGLYLQDWLRQVUHODWLQJWRWKHIXWXUHORYHURUVZHHWKHDUW>@DQG
XQGHUDPLVWOHWRHERXJKLWLVDOORZDEOHIRUDJHQWOHPDQWRNLVVDODG\$YDVWQXPEHURINLQGUHGVXSHUVWLWLRQVDUH
GHVFULEHGE\0U.HOO\WRZKRP,DPLQGHEWHGIRUPDQ\RIWKHVHH[DPSOHV>@
>@,QWKH9HGDVWKHUDLQJRG6RPDRULJLQDOO\WKHSHUVRQLILFDWLRQRIWKHVDFULILFLDODPEURVLDLVWKHGHLW\ZKRLPSDUWV
WRPHQOLIHNQRZOHGJHDQGKDSSLQHVV6HH%UHDO+HUFXOHHW&DFXVS7\ORU3ULPLWLYH&XOWXUH9RO,,S
>@:HPD\SHUKDSVVHHKHUHWKHUHDVRQIRUPDNLQJWKH*UHHNILUHJRG+HSKDLVWRVWKHKXVEDQGRI$SKURGLWH
>@³2XUFRXQWU\PDLGHQVDUHZHOODZDUHWKDWWULSOHOHDYHVSOXFNHGDWKD]DUGIURPWKHFRPPRQDVKDUHZRUQLQWKH
EUHDVWIRUWKHSXUSRVHRIFDXVLQJSURSKHWLFGUHDPVUHVSHFWLQJDGLODWRU\ORYHU7KHOHDYHVRIWKH\HOORZWUHIRLODUH
VXSSRVHGWRSRVVHVVVLPLODUYLUWXHV´²+DUODQGDQG:LONLQVRQ/DQFDVKLUH)RON/RUHS
>@,Q3HUXDPLJKW\DQGIDUZRUVKLSSHGGHLW\ZDV&DWHTXLO
WKHWKXQGHUJRGKHZKRLQWKXQGHUIODVKDQGFODSKXUOV
IURPKLVVOLQJWKHVPDOOURXQGVPRRWKWKXQGHUVWRQHV
WUHDVXUHGLQWKHYLOODJHVDVILUHIHWLVKHVDQGFKDUPVWR
NLQGOHWKHIODPHVRIORYH´²7\ORURSFLW9RO,,S
7KXVZHUHDFKDWODVWWKHFRPSOHWHGFRQFHSWLRQRIWKHGLYLQLQJURGRUDVLWLVFDOOHGLQWKLVVHQVHWKHZLVKURGZLWKLWV
NLQGUHGWDOLVPDQVIURP$ODGGLQ¶VODPSDQGWKHSXUVHRI%HGUHGGLQ+DVVDQWRWKH6DQJUHDOWKHSKLORVRSKHU¶VVWRQH
DQGWKHJREOHWVRI2EHURQDQG7ULVWUDP7KHVHV\PEROVRIWKHUHSURGXFWLYHHQHUJLHVRIQDWXUHZKLFKJLYHWRWKH
SRVVHVVRUHYHU\JRRGDQGSHUIHFWJLIWLOOXVWUDWHWKHXQFXUEHGEHOLHILQWKHSRZHURIZLVKZKLFKWKHDQFLHQWPDQVKDUHG
ZLWKPRGHUQFKLOGUHQ,QWKH1RUVHVWRU\RI)URGL¶VTXHUQWKHP\WKDVVXPHVDZKLPVLFDOVKDSH7KHSURVH(GGDWHOOV
RIDSULPHYDODJHRIJROGZKHQHYHU\ERG\KDGZKDWHYHUKHZDQWHG7KLVZDVEHFDXVHWKHJLDQW)URGLKDGDPLOOZKLFK
JURXQGRXWSHDFHDQGSOHQW\DQGDEXQGDQFHRIJROGZLWKDOVRWKDWLWOD\DERXWWKHURDGVOLNHSHEEOHV7KURXJKWKH
LQH[FXVDEOHDYDULFHRI)URGLWKLVZRQGHUIXOLPSOHPHQWZDVORVWWRWKHZRUOG)RUKHNHSWKLVPDLGVHUYDQWVZRUNLQJDW
WKHPLOOXQWLOWKH\JRWRXWRISDWLHQFHDQGEHJDQWRPDNHLWJULQGRXWKDWUHGDQGZDU7KHQFDPHDPLJKW\VHDURYHUE\
QLJKWDQGVOHZ)URGLDQGFDUULHGDZD\WKHPDLGVDQGWKHTXHUQ:KHQKHJRWZHOORXWWRVHDKHWROGWKHPWRJULQGRXW
VDOWDQGVRWKH\GLGZLWKDYHQJHDQFH7KH\JURXQGWKHVKLSIXOORIVDOWDQGVDQNLWDQGVRWKHTXHUQZDVORVWIRUHYHU
EXWWKHVHDUHPDLQVVDOWXQWRWKLVGD\
0U.HOO\ULJKWO\LGHQWLILHV)URGLZLWKWKHVXQJRG)URRU)UH\UDQGREVHUYHVWKDWWKHPDJLFPLOOLVRQO\DQRWKHUIRUP
RIWKHILUHFKXUQRUFKDUN$FFRUGLQJWRDQRWKHUYHUVLRQWKHTXHUQLVVWLOOJULQGLQJDZD\DQGNHHSLQJWKHVHDVDOWDQG
RYHUWKHSODFHZKHUHLWOLHVWKHUHLVDSURGLJLRXVZKLUOSRRORUPDHOVWURPZKLFKVXFNVGRZQVKLSV
,QLWVFRPSOHWHGVKDSHWKHOLJKWQLQJZDQGLVWKHFDGXFHXVRUURGRI+HUPHV,REVHUYHGLQWKHSUHFHGLQJSDSHUWKDWLQ
WKH*UHHNFRQFHSWLRQRI+HUPHVWKHUHKDYHEHHQIXVHGWRJHWKHUWKHDWWULEXWHVRIWZRGHLWLHVZKRZHUHRULJLQDOO\
GLVWLQFW7KH+HUPHVRIWKH+RPHULF+\PQLVDZLQGJRGEXWWKHODWHU+HUPHV$JRUDLRVWKHSDWURQRIJ\PQDVLDWKH
PXWLODWLRQRIZKRVHVWDWXHVFDXVHGVXFKWHUULEOHH[FLWHPHQWLQ$WKHQVGXULQJWKH3HORSRQQHVLDQ:DULVDYHU\GLIIHUHQW
SHUVRQDJH+HLVDILUHJRGLQYHVWHGZLWKPDQ\VRODUDWWULEXWHVDQGUHSUHVHQWVWKHTXLFNHQLQJIRUFHVRIQDWXUH,QWKLV
FDSDFLW\WKHLQYHQWLRQRIILUHZDVDVFULEHGWRKLPDVZHOODVWR3URPHWKHXVKHZDVVDLGWREHWKHIULHQGRIPDQNLQG
DQGZDVVXUQDPHG3ORXWRGRWHVRU³WKHJLYHURIZHDOWK´
7KH1RUVHZLQGJRG2GLQKDVLQOLNHPDQQHUDFTXLUHGVHYHUDORIWKHDWWULEXWHVRI)UH\UDQG7KRU>@+LVOLJKWQLQJ
VSHDUZKLFKLVERUURZHGIURP7KRUDSSHDUVE\DFRPLFDOPHWDPRUSKRVLVDVDZLVKURGZKLFKZLOODGPLQLVWHUDVRXQG
WKUDVKLQJWRWKHHQHPLHVRILWVSRVVHVVRU+DYLQJFXWDKD]HOVWLFN\RXKDYHRQO\WROD\GRZQDQROGFRDWQDPH\RXU
LQWHQGHGYLFWLPZLVKKHZDVWKHUHDQGZKDFNDZD\KHZLOOKRZOZLWKSDLQDWHYHU\EORZ7KLVZRQGHUIXOFXGJHO
DSSHDUVLQ'DVHQW¶VWDOHRI³7KH/DGZKRZHQWWRWKH1RUWK:LQG´ZLWKZKLFKZHPD\FRQFOXGHWKLVGLVFXVVLRQ7KH
VWRU\LVWROGZLWKOLWWOHYDULDWLRQLQ+LQGXVWDQ*HUPDQ\DQG6FDQGLQDYLD
>@,Q3RO\QHVLD³WKHJUHDWGHLW\0DXLDGGVDQHZFRPSOLFDWLRQWRKLVHQLJPDWLFVRODUFHOHVWLDOFKDUDFWHUE\DSSHDULQJ
DVDZLQGJRG´²7\ORURSFLW9RO,,S
7KH1RUWK:LQGUHSUHVHQWLQJWKHPLVFKLHYRXV+HUPHVRQFHEOHZDZD\DSRRUZRPDQ¶VPHDO6RKHUER\ZHQWWRWKH
1RUWK:LQGDQGGHPDQGHGKLVULJKWVIRUWKHPHDOKLVPRWKHUKDGORVW³,KDYHQ¶WJRW\RXUPHDO´VDLGWKH:LQG³EXW
KHUH¶VDWDEOHFORWKZKLFKZLOOFRYHULWVHOIZLWKDQH[FHOOHQWGLQQHUZKHQHYHU\RXWHOOLWWR´6RWKHODGWRRNWKHFORWK
DQGVWDUWHGIRUKRPH$WQLJKWIDOOKHVWRSSHGDWDQLQQVSUHDGKLVFORWKRQWKHWDEOHDQGRUGHUHGLWWRFRYHULWVHOIZLWK
JRRGWKLQJVDQGVRLWGLG%XWWKHODQGORUGZKRWKRXJKWLWZRXOGEHPRQH\LQKLVSRFNHWWRKDYHVXFKDFORWKVWROHLW
DIWHUWKHER\KDGJRQHWREHGDQGVXEVWLWXWHGDQRWKHUMXVWOLNHLWLQDSSHDUDQFH1H[WGD\WKHER\ZHQWKRPHLQJUHDW
JOHHWRVKRZRIIIRUKLVPRWKHU¶VDVWRQLVKPHQWZKDWWKH1RUWK:LQGKDGJLYHQKLPEXWDOOWKHGLQQHUKHJRWWKDWGD\
ZDVZKDWWKHROGZRPDQFRRNHGIRUKLP,QKLVGHVSDLUKHZHQWEDFNWRWKH1RUWK:LQGDQGFDOOHGKLPDOLDUDQG
DJDLQGHPDQGHGKLVULJKWVIRUWKHPHDOKHKDGORVW³,KDYHQ¶WJRW\RXUPHDO´VDLGWKH:LQG³EXWKHUH¶VDUDPZKLFK
ZLOOGURSPRQH\RXWRILWVIOHHFHZKHQHYHU\RXWHOOLWWR´6RWKHODGWUDYHOOHGKRPHVWRSSLQJRYHUQLJKWDWWKHVDPH
LQQDQGZKHQKHJRWKRPHKHIRXQGKLPVHOIZLWKDUDPZKLFKGLGQ¶WGURSFRLQVRXWRILWVIOHHFH$WKLUGWLPHKH
YLVLWHGWKH1RUWK:LQGDQGREWDLQHGDEDJZLWKDVWLFNLQLWZKLFKDWWKHZRUGRIFRPPDQGZRXOGMXPSRXWRIWKHEDJ
DQGOD\RQXQWLOWROGWRVWRS*XHVVLQJKRZPDWWHUVVWRRGDVWRKLVFORWKDQGUDPKHWXUQHGLQDWWKHVDPHWDYHUQDQG
JRLQJWRDEHQFKOD\GRZQDVLIWRVOHHS7KHODQGORUGWKRXJKWWKDWDVWLFNFDUULHGDERXWLQDEDJPXVWEHZRUWK
VRPHWKLQJDQGVRKHVWROHTXLHWO\XSWRWKHEDJPHDQLQJWRJHWWKHVWLFNRXWDQGFKDQJHLW%XWMXVWDVKHJRWZLWKLQ
ZKDFNLQJGLVWDQFHWKHER\JDYHWKHZRUGDQGRXWMXPSHGWKHVWLFNDQGEHDWWKHWKLHIXQWLOKHSURPLVHGWRJLYHEDFN
WKHUDPDQGWKHWDEOHFORWK$QGVRWKHER\JRWKLVULJKWVIRUWKHPHDOZKLFKWKH1RUWK:LQGKDGEORZQDZD\2FWREHU


,,,:(5(:2/9(6$1'6:$10$,'(16
,7LVUHODWHGE\2YLGWKDW/\NDRQNLQJRI$UNDGLDRQFHLQYLWHG=HXVWRGLQQHUDQGVHUYHGXSIRUKLPDGLVKRIKXPDQ
IOHVKLQRUGHUWRWHVWWKHJRG¶VRPQLVFLHQFH%XWWKHWULFNPLVHUDEO\IDLOHGDQGWKHLPSLRXVPRQDUFKUHFHLYHGWKH
SXQLVKPHQWZKLFKKLVFULPHKDGPHULWHG+HZDVWUDQVIRUPHGLQWRDZROIWKDWKHPLJKWKHQFHIRUWKIHHGXSRQWKH
YLDQGVZLWKZKLFKKHKDGGDUHGWRSROOXWHWKHWDEOHRIWKHNLQJRI2O\PSRV)URPWKDWWLPHIRUWKDFFRUGLQJWR3OLQ\D
QREOH$UNDGLDQZDVHDFK\HDURQWKHIHVWLYDORI=HXV/\NDLRVOHGWRWKHPDUJLQRIDFHUWDLQODNH+DQJLQJKLVFORWKHV
XSRQDWUHHKHWKHQSOXQJHGLQWRWKHZDWHUDQGEHFDPHDZROI)RUWKHVSDFHRIQLQH\HDUVKHURDPHGDERXWWKH
DGMDFHQWZRRGVDQGWKHQLIKHKDGQRWWDVWHGKXPDQIOHVKGXULQJDOOWKLVWLPHKHZDVDOORZHGWRVZLPEDFNWRWKH
SODFHZKHUHKLVFORWKHVZHUHKDQJLQJSXWWKHPRQDQGUHWXUQWRKLVQDWXUDOIRUP,WLVIXUWKHUUHODWHGRIDFHUWDLQ
'HPDLQHWRVWKDWKDYLQJRQFHEHHQSUHVHQWDWDKXPDQVDFULILFHWR=HXV/\NDLRVKHDWHRIWKHIOHVKDQGZDV
WUDQVIRUPHGLQWRDZROIIRUDWHUPRIWHQ\HDUV>@
>@&RPSDUH3ODWR5HSXEOLF9,,,
7KHVHDQGRWKHUVLPLODUP\WKLFDOJHUPVZHUHGHYHORSHGE\WKHPHGLDHYDOLPDJLQDWLRQLQWRWKHKRUULEOHVXSHUVWLWLRQRI
ZHUHZROYHV
$ZHUHZROIRUORXSJDURX>@ZDVDSHUVRQZKRKDGWKHSRZHURIWUDQVIRUPLQJKLPVHOILQWRDZROIEHLQJHQGRZHG
ZKLOHLQWKHOXSLQHVWDWHZLWKWKHLQWHOOLJHQFHRIDPDQWKHIHURFLW\RIDZROIDQGWKHLUUHVLVWLEOHVWUHQJWKRIDGHPRQ
7KHDQFLHQWVEHOLHYHGLQWKHH[LVWHQFHRIVXFKSHUVRQVEXWLQWKH0LGGOH$JHVWKHPHWDPRUSKRVLVZDVVXSSRVHGWREHD
SKHQRPHQRQRIGDLO\RFFXUUHQFHDQGHYHQDWWKHSUHVHQWGD\LQVHFOXGHGSRUWLRQVRI(XURSHWKHVXSHUVWLWLRQLVVWLOO
FKHULVKHGE\SHDVDQWV7KHEHOLHIPRUHRYHULVVXSSRUWHGE\DYDVWDPRXQWRIHYLGHQFHZKLFKFDQQHLWKHUEHDUJXHG
QRUSRRKSRRKHGLQWRLQVLJQLILFDQFH,WLVWKHEXVLQHVVRIWKHFRPSDUDWLYHP\WKRORJLVWWRWUDFHWKHSHGLJUHHRIWKHLGHDV
IURPZKLFKVXFKDFRQFHSWLRQPD\KDYHVSUXQJZKLOHWRWKHFULWLFDOKLVWRULDQEHORQJVWKHWDVNRIDVFHUWDLQLQJDQG
FODVVLI\LQJWKHDFWXDOIDFWVZKLFKWKLVSDUWLFXODUFRQFHSWLRQZDVXVHGWRLQWHUSUHW
>@:HUHZROI PDQZROIZHUPHDQLQJ³PDQ´*DURXLVD*DOOLFFRUUXSWLRQRIZHUHZROIVRWKDWORXSJDURXLVD
WDXWRORJLFDOH[SUHVVLRQ
7KHPHGLDHYDOEHOLHILQZHUHZROYHVLVHVSHFLDOO\DGDSWHGWRLOOXVWUDWHWKHFRPSOLFDWHGPDQQHULQZKLFKGLYHUVP\WKLFDO
FRQFHSWLRQVDQGPLVXQGHUVWRRGQDWXUDORFFXUUHQFHVZLOOFRPELQHWRJHQHUDWHDORQJHQGXULQJVXSHUVWLWLRQ0U&R[
LQGHHGZRXOGKDYHXVEHOLHYHWKDWWKHZKROHQRWLRQDURVHIURPDQXQLQWHQWLRQDOSOD\XSRQZRUGVEXWWKHFDUHIXO
VXUYH\RIWKHILHOGZKLFKKDVEHHQWDNHQE\+HUW]DQG%DULQJ*RXOGOHDGVWRWKHFRQFOXVLRQWKDWPDQ\RWKHU
FLUFXPVWDQFHVKDYHEHHQDWZRUN7KHGHOXVLRQWKRXJKGRXEWOHVVSXUHO\P\WKLFDOLQLWVRULJLQQHYHUWKHOHVVSUHVHQWVLQ
LWVGHYHORSHGVWDWHDFXULRXVPL[WXUHRIP\WKLFDODQGKLVWRULFDOHOHPHQWV
:LWKUHJDUGWRWKH$UNDGLDQOHJHQGWDNHQE\LWVHOI0U&R[LVSUREDEO\ULJKW7KHVWRU\VHHPVWREHORQJWRWKDWODUJH
FODVVRIP\WKVZKLFKKDYHEHHQGHYLVHGLQRUGHUWRH[SODLQWKHPHDQLQJRIHTXLYRFDOZRUGVZKRVHWUXHVLJQLILFDQFHKDV
EHHQIRUJRWWHQ7KHHSLWKHW/\NDLRVDVDSSOLHGWR=HXVKDGRULJLQDOO\QRUHIHUHQFHWRZROYHVLWPHDQV³WKHEULJKW
RQH´DQGJDYHULVHWRO\FDQWKURSLFOHJHQGVRQO\EHFDXVHRIWKHVLPLODULW\LQVRXQGEHWZHHQWKHQDPHVIRU³ZROI´DQG
³EULJKWQHVV´$U\DQP\WKRORJ\IXUQLVKHVQXPHURXVRWKHULQVWDQFHVRIWKLVFRQIXVLRQ7KHVRODUGHLW\3KRLERV
/\NHJHQHVZDVRULJLQDOO\WKH³RIIVSULQJRIOLJKW´EXWSRSXODUHW\PRORJ\PDGHDNLQGRIZHUHZROIRIKLPE\
LQWHUSUHWLQJKLVQDPHDVWKH³ZROIERUQ´7KHQDPHRIWKHKHUR$XWRO\NRVPHDQVVLPSO\WKH³VHOIOXPLQRXV´EXWLWZDV
PRUHIUHTXHQWO\LQWHUSUHWHGDVPHDQLQJ³DYHU\ZROI´LQDOOXVLRQWRWKHVXSSRVHGFKDUDFWHURILWVSRVVHVVRU%D]UDWKH
QDPHRIWKHFLWDGHORI&DUWKDJHZDVWKH3XQLFZRUGIRU³IRUWUHVV´EXWWKH*UHHNVFRQIRXQGHGLWZLWKE\UVD³DKLGH´
DQGKHQFHWKHVWRU\RIWKHR[KLGHVFXWLQWRVWULSVE\'LGRLQRUGHUWRPHDVXUHWKHDUHDRIWKHSODFHWREHIRUWLILHG7KH
ROGWKHRU\WKDWWKH,ULVKZHUH3KRHQLFLDQVKDGDVLPLODURULJLQ7KHQDPH)HQDXVHGWRGHVLJQDWHWKHROG6FRWLRU,ULVK
LVWKHSOXUDORI)LRQ³IDLU´VHHQLQWKHQDPHRIWKHKHUR)LRQ*DOORU³)LQJDO´EXWWKHPRQNLVKFKURQLFOHUVLGHQWLILHG
)HQDZLWKSKRLQL[ZKHQFHDURVHWKHP\WKDQGE\DOLNHPLVXQGHUVWDQGLQJRIWKHHSLWKHW0LOHGKRU³ZDUULRU´DSSOLHG
WR)LRQE\WKH*DHOLFEDUGVWKHUHZDVJHQHUDWHGDP\WKLFDOKHUR0LOHVLXVDQGWKHVRXEULTXHW³0LOHVLDQ´FROORTXLDOO\
HPSOR\HGLQVSHDNLQJRIWKH,ULVK>@6RWKH)UDQNVH[SODLQHGWKHQDPHRIWKHWRZQ'DUDVLQ0HVRSRWDPLDE\WKH
VWRU\WKDWWKH(PSHURU-XVWLQLDQRQFHDGGUHVVHGWKHFKLHIPDJLVWUDWHZLWKWKHH[FODPDWLRQGDUDV³WKRXVKDOWJLYH´>@
WKH*UHHNFKURQLFOHU0DODODVZKRVSHOOVWKHQDPH'RUDVLQIRUPVXVZLWKHTXDOFRPSODFHQF\WKDWLWZDVWKHSODFH
ZKHUH$OH[DQGHURYHUFDPH&RGRPDQQXVZLWKGRUQ³WKHVSHDU´$FHUWDLQSDVVDJHLQWKH$OSVLVFDOOHG6FDOHWWDIURP
LWVUHVHPEODQFHWRDVWDLUFDVHEXWDFFRUGLQJWRDORFDOWUDGLWLRQLWRZHVLWVQDPHWRWKHEOHDFKLQJVNHOHWRQVRID
FRPSDQ\RI0RRUVZKRZHUHGHVWUR\HGWKHUHLQWKHHLJKWKFHQWXU\ZKLOHDWWHPSWLQJWRSHQHWUDWHLQWR1RUWKHUQ,WDO\
7KHQDPHRI$QWZHUSGHQRWHVWKHWRZQEXLOWDWD³ZKDUI´EXWLWVRXQGVYHU\PXFKOLNHWKH)OHPLVKKDQGWZHUSHQ
³KDQGWKURZLQJ´³KHQFHDURVHWKHOHJHQGRIWKHJLDQWZKRFXWRIWKHKDQGVRIWKRVHZKRSDVVHGKLVFDVWOHZLWKRXW
SD\LQJKLPEODFNPDLODQGWKUHZWKHPLQWRWKH6FKHOGW´>@,QWKHP\WKRI%LVKRS+DWWRUHODWHGLQDSUHYLRXVSDSHU
WKH0DXVHWKXUPLVDFRUUXSWLRQRIPDXWWKXUPLWPHDQV³FXVWRPVWRZHU´DQGKDVQRWKLQJWRGRZLWKPLFHRUUDWV
'RXEWOHVVWKLVHW\PRORJ\ZDVWKHFDXVHRIWKHIORDWLQJP\WKJHWWLQJIDVWHQHGWRWKLVSDUWLFXODUSODFHWKDWLWGLGQRWJLYH
ULVHWRWKHP\WKLWVHOILVVKRZQE\WKHH[LVWHQFHRIWKHVDPHWDOHLQRWKHUSODFHV6RPHZKHUHLQ(QJODQGWKHUHLVDSODFH
FDOOHG&KDWHDX9HUWWKHSHDVDQWU\KDYHFRUUXSWHGLWLQWR6KRWRYHUDQGVD\WKDWLWKDVERUQHWKDWQDPHHYHUVLQFH/LWWOH
-RKQVKRWRYHUDKLJKKLOOLQWKHQHLJKERXUKRRG>@/DWLXPPHDQV³WKHIODWODQG´EXWDFFRUGLQJWR9LUJLOLWLVWKH
SODFHZKHUH6DWXUQRQFHKLG ODWXLVVHW IURPWKHZUDWKRIKLVXVXUSLQJVRQ-XSLWHU>@
>@0H\HULQ%XQVHQ¶V3KLORVRSK\RI8QLYHUVDO+LVWRU\9RO
,S
>@$LPRLQ'H*HVWLV)UDQFRUXP,,
>@7D\ORU:RUGVDQG3ODFHVS
>@9HU\VLPLODUWRWKLVLVWKHHW\PRORJLFDOFRQIXVLRQXSRQZKLFKLVEDVHGWKHP\WKRIWKH³FRQIXVLRQRIWRQJXHV´LQ
WKHHOHYHQWKFKDSWHURI*HQHVLV7KHQDPH³%DEHO´LVUHDOO\%DE,ORU³WKHJDWHRI*RG´EXWWKH+HEUHZZULWHU
HUURQHRXVO\GHULYHVWKHZRUGIURPWKHURRWEDODO³WRFRQIXVH´DQGKHQFHDULVHVWKHP\WKLFDOH[SODQDWLRQWKDW%DEHO
ZDVDSODFHZKHUHKXPDQVSHHFKEHFDPHFRQIXVHG6HH5DZOLQVRQLQ6PLWK¶V'LFWLRQDU\RIWKH%LEOH9RO,S
5HQDQ+LVWRLUHGHV/DQJXHV6HPLWLTXHV9RO,S
'RQDOGVRQ1HZ&UDW\OXVSQRWH&ROHQVRRQWKH3HQWDWHXFK9RO,9S
>@9LOJ$(Q9,,,:LWK/DWLXPFRPSDUHSODW"V6NUSUDWK WRVSUHDGRXW (QJIODW)HUUDU&RPSDUDWLYH
*UDPPDURI*UHHN/DWLQDQG6DQVNULW9RO,S
,WZDVLQWKLVZD\WKDWWKHFRQVWHOODWLRQRIWKH*UHDW%HDUUHFHLYHGLWVQDPH7KH*UHHNZRUGDUNWRVDQVZHULQJWRWKH
6DQVNULWULNVKDPHDQWRULJLQDOO\DQ\EULJKWREMHFWDQGZDVDSSOLHGWRWKHEHDU²IRUZKDWUHDVRQLWZRXOGQRWEHHDV\
WRVWDWH²DQGWRWKDWFRQVWHOODWLRQZKLFKZDVPRVWFRQVSLFXRXVLQWKHODWLWXGHRIWKHHDUO\KRPHRIWKH$U\DQV:KHQ
WKH*UHHNVKDGORQJIRUJRWWHQZK\WKHVHVWDUVZHUHFDOOHGDUNWRLWKH\V\PEROL]HGWKHPDVD*UHDW%HDUIL[HGLQWKH
VN\6RWKDWDV0D[0XOOHUREVHUYHV³WKHQDPHRIWKH$UFWLFUHJLRQVUHVWVRQDPLVXQGHUVWDQGLQJRIDQDPHIUDPHG
WKRXVDQGVRI\HDUVDJRLQ&HQWUDO$VLDDQGWKHVXUSULVHZLWKZKLFKPDQ\DWKRXJKWIXOREVHUYHUKDVORRNHGDWWKHVH
VHYHQEULJKWVWDUVZRQGHULQJZK\WKH\ZHUHHYHUFDOOHGWKH%HDULVUHPRYHGE\DUHIHUHQFHWRWKHHDUO\DQQDOVRI
KXPDQVSHHFK´$PRQJWKH$OJRQTXLQVWKHVXQJRG0LFKDERZDVUHSUHVHQWHGDVDKDUHKLVQDPHEHLQJFRPSRXQGHG
RIPLFKL³JUHDW´DQGZDERV³DKDUH´\HWZDERVDOVRPHDQW³ZKLWH´VRWKDWWKHJRGZDVGRXEWOHVVRULJLQDOO\FDOOHG
VLPSO\³WKH*UHDW:KLWH2QH´7KHVDPHQDLYHSURFHVVKDVPDGHEHDUVRIWKH$UNDGLDQVZKRVHQDPHOLNHWKDWRIWKH
/\NLDQVPHUHO\VLJQLILHGWKDWWKH\ZHUH³FKLOGUHQRIOLJKW´DQGWKHPHWDPRUSKRVLVRI.DOOLVWRPRWKHURI$UNDVLQWRD
EHDUDQGRI/\NDRQLQWRDZROIUHVWVDSSDUHQWO\XSRQQRRWKHUIRXQGDWLRQWKDQDQHUURQHRXVHW\PRORJ\2ULJLQDOO\
/\NDRQZDVQHLWKHUPDQQRUZROIKHZDVEXWDQRWKHUIRUPRI3KRLERV/\NHJHQHVWKHOLJKWERUQVXQDQGDV0U&R[
KDVVKRZQKLVOHJHQGLVEXWDYDULDWLRQRIWKDWRI7DQWDORVZKRLQWLPHRIGURXJKWRIIHUVWR=HXVWKHIOHVKRIKLVRZQ
RIIVSULQJWKHZLWKHUHGIUXLWVDQGLVSXQLVKHGIRUKLVLPSLHW\
,WVHHPVWRPHKRZHYHUWKDWWKLVH[SODQDWLRQWKRXJKYDOLGDVIDUDVLWJRHVLVLQDGHTXDWHWRH[SODLQDOOWKHIHDWXUHVRI
WKHZHUHZROIVXSHUVWLWLRQRUWRDFFRXQWIRULWVSUHVHQFHLQDOO$U\DQFRXQWULHVDQGDPRQJPDQ\SHRSOHVZKRDUHQRWRI
$U\DQRULJLQ7KHUHFDQEHQRGRXEWWKDWWKHP\WKPDNHUVWUDQVIRUPHG/\NDRQLQWRDZROIEHFDXVHRIKLVXQOXFN\
QDPHEHFDXVHZKDWUHDOO\PHDQW³EULJKWPDQ´VHHPHGWRWKHPWRPHDQ³ZROIPDQ´EXWLWKDVE\QRPHDQVEHHQ
SURYHGWKDWDVLPLODUHTXLYRFDWLRQRFFXUUHGLQWKHFDVHRIDOOWKHSULPLWLYH$U\DQZHUHZROYHVQRUKDVLWEHHQVKRZQWR
EHSUREDEOHWKDWDPRQJHDFKSHRSOHWKHEHLQJZLWKWKHXQFDQQ\QDPHJRWWKXVDFFLGHQWDOO\FRQIRXQGHGZLWKWKH
SDUWLFXODUEHDVWPRVWGUHDGHGE\WKDWSHRSOH(W\PRORJ\DORQHGRHVQRWH[SODLQWKHIDFWWKDWZKLOH*DXOKDVEHHQWKH
IDYRXULWHKDXQWRIWKHPDQZROI6FDQGLQDYLDKDVEHHQSUHIHUUHGE\WKHPDQEHDUDQG+LQGXVWDQE\WKHPDQWLJHU7R
DFFRXQWIRUVXFKDZLGHVSUHDGSKHQRPHQRQZHPXVWVHHNDPRUHJHQHUDOFDXVH
1RWKLQJLVPRUHVWULNLQJO\FKDUDFWHULVWLFRISULPLWLYHWKLQNLQJWKDQWKHFORVHFRPPXQLW\RIQDWXUHZKLFKLWDVVXPHV
EHWZHHQPDQDQGEUXWH7KHGRFWULQHRIPHWHPSV\FKRVLVZKLFKLVIRXQGLQVRPHVKDSHRURWKHUDOORYHUWKHZRUOG
LPSOLHVDIXQGDPHQWDOLGHQWLW\EHWZHHQWKHWZRWKH+LQGXLVWDXJKWWRUHVSHFWWKHIORFNVEURZVLQJLQWKHPHDGRZDQG
ZLOORQQRDFFRXQWOLIWKLVKDQGDJDLQVWDFRZIRUZKRNQRZVEXWLWPD\KHKLVRZQJUDQGPRWKHU"7KHUHFHQW
UHVHDUFKHVRI0U0µ/HQQDQDQG0U+HUEHUW6SHQFHUKDYHVHUYHGWRFRQQHFWWKLVIHHOLQJZLWKWKHSULPHYDOZRUVKLSRI
DQFHVWRUVDQGZLWKWKHVDYDJHFXVWRPVRIWRWHPLVP>@
>@0µ/HQQDQ³7KH:RUVKLSRI$QLPDOVDQG3ODQWV´)RUWQLJKWO\5HYLHZ169RO9,SS9RO
9,,SS6SHQFHU³7KH2ULJLQRI$QLPDO:RUVKLS´,G9RO9,,SSUHSULQWHGLQKLV5HFHQW
'LVFXVVLRQVLQ6FLHQFHHWFSS
7KHZRUVKLSRIDQFHVWRUVVHHPVWRKDYHEHHQHYHU\ZKHUHWKHROGHVWV\VWHPDWL]HGIRUPRIIHWLFKLVWLFUHOLJLRQ7KH
UHYHUHQFHSDLGWRWKHFKLHIWDLQRIWKHWULEHZKLOHOLYLQJZDVFRQWLQXHGDQGH[DJJHUDWHGDIWHUKLVGHDWK7KHXQFLYLOL]HG
PDQLVHYHU\ZKHUHLQFDSDEOHRIJUDVSLQJWKHLGHDRIGHDWKDVLWLVDSSUHKHQGHGE\FLYLOL]HGSHRSOH+HFDQQRW
XQGHUVWDQGWKDWDPDQVKRXOGSDVVDZD\VRDVWREHQRORQJHUFDSDEOHRIFRPPXQLFDWLQJZLWKKLVIHOORZV7KHLPDJHRI
KLVGHDGFKLHIRUFRPUDGHUHPDLQVLQKLVPLQGDQGWKHVDYDJH¶VSKLORVRSKLFUHDOLVPIDUVXUSDVVHVWKDWRIWKHPRVW
H[WUDYDJDQWPHGLDHYDOVFKRROPHQWRKLPWKHSHUVLVWHQFHRIWKHLGHDLPSOLHVWKHSHUVLVWHQFHRIWKHUHDOLW\7KHGHDG
PDQDFFRUGLQJO\LVQRWUHDOO\GHDGKHKDVWKURZQRIIKLVERG\OLNHDKXVN\HWVWLOOUHWDLQVKLVROGDSSHDUDQFHDQG
RIWHQVKRZVKLPVHOIWRKLVROGIULHQGVHVSHFLDOO\DIWHUQLJKWIDOO+HLVQRGRXEWSRVVHVVHGRIPRUHH[WHQVLYHSRZHUV
WKDQEHIRUHKLVWUDQVIRUPDWLRQ>@DQGPD\YHU\OLNHO\KDYHDVKDUHLQUHJXODWLQJWKHZHDWKHUJUDQWLQJRUZLWKKROGLQJ
UDLQ7KHUHIRUHDUJXHVWKHXQFLYLOL]HGPLQGKHLVWREHFDMROHGDQGSURSLWLDWHGPRUHVHGXORXVO\QRZWKDQEHIRUHKLV
VWUDQJHWUDQVIRUPDWLRQ
>@7KXVLVH[SODLQHGWKHVLQJXODUFRQGXFWRIWKH+LQGXZKRVOD\VKLPVHOIEHIRUHKLVHQHP\¶VGRRULQRUGHUWR
DFTXLUHJUHDWHUSRZHURILQMXULQJKLP³$FHUWDLQ%UDKPDQRQZKRVHODQGVD.VKDWUL\DUDMDKDGEXLOWDKRXVHULSSHG
KLPVHOIXSLQUHYHQJHDQGEHFDPHDGHPRQRIWKHNLQGFDOOHG%UDKPDGDV\XZKRKDVEHHQHYHUVLQFHWKHWHUURURIWKH
ZKROHFRXQWU\DQGLVWKHPRVWFRPPRQYLOODJHGHLW\LQ.KDUDNSXU7RZDUGWKHFORVHRIWKHODVWFHQWXU\WKHUHZHUHWZR
%UDKPDQVRXWRIZKRVHKRXVHDPDQKDGZURQJIXOO\DVWKH\WKRXJKWWDNHQIRUW\UXSHHVZKHUHXSRQRQHRIWKH
%UDKPDQVSURFHHGHGWRFXWRIIKLVRZQPRWKHU¶VKHDGZLWKWKHSURIHVVHGYLHZHQWHUWDLQHGE\ERWKPRWKHUDQGVRQ
WKDWKHUVSLULWH[FLWHGE\WKHEHDWLQJRIDODUJHGUXPGXULQJIRUW\GD\VPLJKWKDXQWWRUPHQWDQGSXUVXHWRGHDWKWKH
WDNHURIWKHLUPRQH\DQGWKRVHFRQFHUQHGZLWKKLP´7\ORU3ULPLWLYH&XOWXUH9RO,,S
7KLVNLQGRIZRUVKLSVWLOOPDLQWDLQVDODQJXLGH[LVWHQFHDVWKHVWDWHUHOLJLRQRI&KLQDDQGLWVWLOOH[LVWVDVDSRUWLRQRI
%UDKPDQLVPEXWLQWKH9HGLFUHOLJLRQLWLVWREHVHHQLQDOOLWVYLJRXUDQGLQDOOLWVQDLYHVLPSOLFLW\$FFRUGLQJWRWKH
DQFLHQW$U\DQWKHSLWULVRU³)DWKHUV´ /DWSDWUHV OLYHLQWKHVN\DORQJZLWK<DPDWKHJUHDWRULJLQDO3LWULRIPDQNLQG
7KLVILUVWPDQFDPHGRZQIURPKHDYHQLQWKHOLJKWQLQJDQGEDFNWRKHDYHQERWKKLPVHOIDQGDOOKLVRIIVSULQJPXVW
KDYHJRQH7KHUHWKH\GLVWULEXWHOLJKWXQWRPHQEHORZDQGWKH\VKLQHWKHPVHOYHVDVVWDUVDQGKHQFHWKH&KULVWLDQL]HG
*HUPDQSHDVDQWILIW\FHQWXULHVODWHUWHOOVKLVFKLOGUHQWKDWWKHVWDUVDUHDQJHOV¶H\HVDQGWKH(QJOLVKFRWWDJHU
LPSUHVVHVLWRQWKH\RXWKIXOPLQGWKDWLWLVZLFNHGWRSRLQWDWWKHVWDUVWKRXJKZK\KHFDQQRWWHOO%XWWKH3LWULVDUHQRW
VWDUVRQO\QRUGRWKH\FRQWHQWWKHPVHOYHVZLWKLGO\ORRNLQJGRZQRQWKHDIIDLUVRIPHQDIWHUWKHIDVKLRQRIWKHODLVVH]
IDLUHGLYLQLWLHVRI/XFUHWLXV7KH\DUHRQWKHFRQWUDU\YHU\EXV\ZLWKWKHZHDWKHUWKH\VHQGUDLQWKXQGHUDQG
OLJKWQLQJDQGWKH\HVSHFLDOO\GHOLJKWLQUXVKLQJRYHUWKHKRXVHWRSVLQDJUHDWJDOHRIZLQGOHGRQE\WKHLUFKLHIWKH
P\VWHULRXVKXQWVPDQ+HUPHVRU2GLQ
,WKDVEHHQHOVHZKHUHVKRZQWKDWWKHKRZOLQJGRJRUZLVKKRXQGRI+HUPHVZKRVHDSSHDUDQFHXQGHUWKHZLQGRZVRI
DVLFNSHUVRQLVVXFKDQDODUPLQJSRUWHQWLVPHUHO\WKHWHPSHVWSHUVRQLILHG7KURXJKRXWDOO$U\DQP\WKRORJ\WKHVRXOV
RIWKHGHDGDUHVXSSRVHGWRULGHRQWKHQLJKWZLQGZLWKWKHLUKRZOLQJGRJVJDWKHULQJLQWRWKHLUWKURQJWKHVRXOVRI
WKRVHMXVWG\LQJDVWKH\SDVVE\WKHLUKRXVHV>@6RPHWLPHVWKHZKROHFRPSOH[FRQFHSWLRQLVZUDSSHGXSLQWKHQRWLRQ
RIDVLQJOHGRJWKHPHVVHQJHURIWKHJRGRIVKDGHVZKRFRPHVWRVXPPRQWKHGHSDUWLQJVRXO6RPHWLPHVLQVWHDGRID
GRJZHKDYHDJUHDWUDYHQLQJZROIZKRFRPHVWRGHYRXULWVYLFWLPDQGH[WLQJXLVKWKHVXQOLJKWRIOLIHDVWKDWROGZROI
RIWKHWULEHRI)HQULUGHYRXUHGOLWWOH5HG5LGLQJ+RRGZLWKKHUUREHRIVFDUOHWWZLOLJKW>@7KXVZHDUULYHDWDWUXH
ZHUHZROIP\WK7KHVWRUPZLQGRUKRZOLQJ5DNVKDVDRI+LQGXIRONORUHLV³DJUHDWPLVVKDSHQJLDQWZLWKUHGEHDUG
DQGUHGKDLUZLWKSRLQWHGSURWUXGLQJWHHWKUHDG\WRODFHUDWHDQGGHYRXUKXPDQIOHVKKLVERG\LVFRYHUHGZLWKFRDUVH
EULVWOLQJKDLUKLVKXJHPRXWKLVRSHQKHORRNVIURPVLGHWRVLGHDVKHZDONVOXVWLQJDIWHUWKHIOHVKDQGEORRGRIPHQ
WRVDWLVI\KLVUDJLQJKXQJHUDQGTXHQFKKLVFRQVXPLQJWKLUVW7RZDUGVQLJKWIDOOKLVVWUHQJWKLQFUHDVHVPDQLIROGKHFDQ
FKDQJHKLVVKDSHDWZLOOKHKDXQWVWKHZRRGVDQGURDPVKRZOLQJWKURXJKWKHMXQJOH´>@
>@+HQFHLQPDQ\SDUWVRI(XURSHLWLVVWLOOFXVWRPDU\WRRSHQWKHZLQGRZVZKHQDSHUVRQGLHVLQRUGHUWKDWWKHVRXO
PD\QRWEHKLQGHUHGLQMRLQLQJWKHP\VWLFFDYDOFDGH
>@7KHVWRU\RIOLWWOH5HG5LGLQJ+RRGLV³PXWLODWHGLQWKH(QJOLVKYHUVLRQEXWNQRZQPRUHSHUIHFWO\E\ROGZLYHVLQ
*HUPDQ\ZKRFDQWHOOWKDWWKHORYHO\OLWWOHPDLGLQKHUVKLQLQJUHGVDWLQFORDNZDVVZDOORZHGZLWKKHUJUDQGPRWKHUE\
WKHZROIWLOOWKH\ERWKFDPHRXWVDIHDQGVRXQGZKHQWKHKXQWHUFXWRSHQWKHVOHHSLQJEHDVW´7\ORU3ULPLWLYH&XOWXUH
,ZKHUHDOVRVHHWKHNLQGUHG5XVVLDQVWRU\RI9DVLOLVVDWKH%HDXWLIXO&RPSDUHWKHFDVHRI7RP7KXPEZKR³ZDV
VZDOORZHGE\WKHFRZDQGFDPHRXWXQKXUW´WKHVWRU\RI6DNWLGHYDVZDOORZHGE\WKHILVKDQGFXWRXWDJDLQLQ
6RPDGHYD%KDWWD,,DQGWKHVWRU\RI-RQDKVZDOORZHGE\WKHZKDOHLQWKH2OG7HVWDPHQW$OOWKHVHDUH
GLIIHUHQWYHUVLRQVRIWKHVDPHP\WKDQGUHIHUWRWKHDOWHUQDWHVZDOORZLQJXSDQGFDVWLQJIRUWKRI'D\E\1LJKWZKLFK
LVFRPPRQO\SHUVRQLILHGDVDZROIDQGQRZDQGWKHQDVDJUHDWILVK&RPSDUH*ULPP¶VVWRU\RIWKH:ROIDQG6HYHQ
.LGV7\ORUORFFLWDQGVHH(DUO\+LVWRU\RI0DQNLQGS+DUG\0DQXDORI%XGKLVPS
>@%DULQJ*RXOG%RRNRI:HUHZROYHVS0XLU6DQVNULW7H[WV,,
1RZLIWKHVWRUPZLQGLVDKRVWRI3LWULVRURQHJUHDW3LWULZKRDSSHDUVDVDIHDUIXOJLDQWDQGLVDOVRDSDFNRIZROYHV
RUZLVKKRXQGVRUDVLQJOHVDYDJHGRJRUZROIWKHLQIHUHQFHLVREYLRXVWRWKHP\WKRSRHLFPLQGWKDWPHQPD\EHFRPH
ZROYHVDWOHDVWDIWHUGHDWK$QGWRWKHXQFLYLOL]HGWKLQNHUWKLVLQIHUHQFHLVVWUHQJWKHQHGDV0U6SHQFHUKDVVKRZQE\
HYLGHQFHUHJLVWHUHGRQKLVRZQWULEDOWRWHPRUKHUDOGLFHPEOHP7KHEHDUVDQGOLRQVDQGOHRSDUGVRIKHUDOGU\DUHWKH
GHJHQHUDWHGHVFHQGDQWVRIWKHWRWHPRIVDYDJHU\ZKLFKGHVLJQDWHGWKHWULEHE\DEHDVWV\PERO7RWKHXQWXWRUHGPLQG
WKHUHLVHYHU\WKLQJLQDQDPHDQGWKHGHVFHQGDQWRI%URZQ%HDURU<HOORZ7LJHURU6LOYHU+\DHQDFDQQRWEH
SURQRXQFHGXQIDLWKIXOWRKLVRZQVW\OHRISKLORVRSKL]LQJLIKHUHJDUGVKLVDQFHVWRUVZKRFDUHHUDERXWKLVKXWLQWKH
GDUNQHVVRIQLJKWDVEHORQJLQJWRZKDWHYHURUGHURIEHDVWVKLVWRWHPDVVRFLDWLRQVPD\VXJJHVW
7KXVZHQRWRQO\VHHDUD\RIOLJKWWKURZQRQWKHVXEMHFWRIPHWHPSV\FKRVLVEXWZHJHWDJOLPSVHRIWKHFXULRXV
SURFHVVE\ZKLFKWKHLQWHQVHO\UHDOLVWLFPLQGRIDQWLTXLW\DUULYHGDWWKHQRWLRQWKDWPHQFRXOGEHWUDQVIRUPHGLQWR
EHDVWV)RUWKHEHOLHIWKDWWKHVRXOFDQWHPSRUDULO\TXLWWKHERG\GXULQJOLIHWLPHKDVEHHQXQLYHUVDOO\HQWHUWDLQHGDQG
IURPWKHFRQFHSWLRQRIZROIOLNHJKRVWVLWZDVEXWDVKRUWVWHSWRWKHFRQFHSWLRQRIFRUSRUHDOZHUHZROYHV,QWKH
0LGGOH$JHVWKHSKHQRPHQDRIWUDQFHDQGFDWDOHSV\ZHUHFLWHGLQSURRIRIWKHWKHRU\WKDWWKHVRXOFDQOHDYHWKHERG\
DQGDIWHUZDUGVUHWXUQWRLW+HQFHLWZDVYHU\GLIILFXOWIRUDSHUVRQDFFXVHGRIZLWFKFUDIWWRSURYHDQDOLELIRUWRDQ\
DPRXQWRIHYLGHQFHVKRZLQJWKDWWKHERG\ZDVLQQRFHQWO\UHSRVLQJDWKRPHDQGLQEHGWKHUHMRLQGHUZDVREYLRXVWKDW
WKHVRXOPD\QHYHUWKHOHVVKDYHEHHQLQDWWHQGDQFHDWWKHZLWFKHV¶6DEEDWKRUEXVLHGLQPDLPLQJDQHLJKERXU¶VFDWWOH
$FFRUGLQJWRRQHPHGLDHYDOQRWLRQWKHVRXORIWKHZHUHZROITXLWLWVKXPDQERG\ZKLFKUHPDLQHGLQDWUDQFHXQWLOLWV
UHWXUQ>@
>@,QWKRVHGD\VHYHQDQDIWHUGLQQHUQDSVHHPVWRKDYHEHHQWKRXJKWXQFDQQ\6HH'DVHQW%XUQW1MDO,[[L
7KHP\WKRORJLFDOEDVLVRIWKHZHUHZROIVXSHUVWLWLRQLVQRZ,EHOLHYHVXIILFLHQWO\LQGLFDWHG7KHEHOLHIKRZHYHUGLG
QRWUHDFKLWVFRPSOHWHGHYHORSPHQWRUDFTXLUHLWVPRVWKRUULEOHIHDWXUHVXQWLOWKHSDJDQKDELWVRIWKRXJKWZKLFKKDG
RULJLQDWHGLWZHUHPRGLILHGE\FRQWDFWZLWK&KULVWLDQWKHRORJ\7RWKHDQFLHQWWKHUHZDVQRWKLQJQHFHVVDULO\GLDEROLFDO
LQWKHWUDQVIRUPDWLRQRIDPDQLQWRDEHDVW%XW&KULVWLDQLW\ZKLFKUHWDLQHGVXFKDKRVWRISDJDQFRQFHSWLRQVXQGHU
VXFKVWUDQJHGLVJXLVHVZKLFKGHJUDGHGWKH³$OOIDWKHU´2GLQLQWRWKHRJUHRIWKHFDVWOHWRZKLFK-DFNFOLPEHGRQKLV
EHDQVWDONDQGZKLFKEOHQGHGWKHEHQHILFHQWOLJKWQLQJJRG7KRUDQGWKHPLVFKLHYRXV+HUPHVDQGWKHIDXQOLNH3DQ
LQWRWKHJURWHVTXH7HXWRQLF'HYLOGLGQRWIDLOWRLPSDUWDQHZDQGIHDUIXOFKDUDFWHUWRWKHEHOLHILQZHUHZROYHV
/\FDQWKURS\EHFDPHUHJDUGHGDVDVSHFLHVRIZLWFKFUDIWWKHZHUHZROIZDVVXSSRVHGWRKDYHREWDLQHGKLVSHFXOLDU
SRZHUVWKURXJKWKHIDYRXURUFRQQLYDQFHRIWKH'HYLODQGKXQGUHGVRISHUVRQVZHUHEXUQHGDOLYHRUEURNHQRQWKH
ZKHHOIRUKDYLQJDYDLOHGWKHPVHOYHVRIWKHSULYLOHJHRIEHDVWPHWDPRUSKRVLV7KHVXSHUVWLWLRQWKXVZLGHO\H[WHQGHG
DQGJUHDWO\LQWHQVLILHGZDVFRQILUPHGE\PDQ\VLQJXODUSKHQRPHQDZKLFKFDQQRWEHRPLWWHGIURPDQ\WKRURXJK
GLVFXVVLRQRIWKHQDWXUHDQGFDXVHVRIO\FDQWKURS\
7KHILUVWRIWKHVHSKHQRPHQDLVWKH%HUVHUNHULQVDQLW\FKDUDFWHULVWLFRI6FDQGLQDYLDEXWQRWXQNQRZQLQRWKHU
FRXQWULHV,QWLPHVZKHQNLOOLQJRQH¶VHQHPLHVRIWHQIRUPHGDSDUWRIWKHQHFHVVDU\EXVLQHVVRIOLIHSHUVRQVZHUH
IUHTXHQWO\IRXQGZKRNLOOHGIRUWKHPHUHORYHRIWKHWKLQJZLWKZKRPVODXJKWHUZDVDQHQGGHVLUDEOHLQLWVHOIQRW
PHUHO\DPHDQVWRDGHVLUDEOHHQG:KDWWKHPLVHULVLQDQDJHZKLFKZRUVKLSVPDPPRQVXFKZDVWKH%HUVHUNHULQDQ
DJHZKHQWKHFXUUHQWLGHDRIKHDYHQZDVWKDWRIDSODFHZKHUHSHRSOHFRXOGKDFNHDFKRWKHUWRSLHFHVWKURXJKDOO
HWHUQLW\DQGZKHQWKHPDQZKRUHIXVHGDFKDOOHQJHZDVSXQLVKHGZLWKFRQILVFDWLRQRIKLVHVWDWHV:LWKWKHVH
1RUWKPHQLQWKHQLQWKFHQWXU\WKHFKLHIEXVLQHVVDQGDPXVHPHQWLQOLIHZDVWRVHWVDLOIRUVRPHSOHDVDQWFRXQWU\OLNH
6SDLQRU)UDQFHDQGPDNHDOOWKHFRDVWVDQGQDYLJDEOHULYHUVKLGHRXVZLWKUDSLQHDQGPDVVDFUH:KHQDWKRPHLQWKH
LQWHUYDOVEHWZHHQWKHLUIUHHERRWLQJH[SHGLWLRQVWKH\ZHUHOLDEOHWREHFRPHSRVVHVVHGE\DVWUDQJHKRPLFLGDOPDGQHVV
GXULQJZKLFKWKH\ZRXOGDUUD\WKHPVHOYHVLQWKHVNLQVRIZROYHVRUEHDUVDQGVDOO\IRUWKE\QLJKWWRFUDFNWKH
EDFNERQHVVPDVKWKHVNXOOVDQGVRPHWLPHVWRGULQNZLWKILHQGLVKJOHHWKHEORRGRIXQZDU\WUDYHOOHUVRUORLWHUHUV
7KHVHILWVRIPDGQHVVZHUHXVXDOO\IROORZHGE\SHULRGVRIXWWHUH[KDXVWLRQDQGQHUYRXVGHSUHVVLRQ>@
>@6HH'DVHQW%XUQW1MDL9RO,S[[LL*UHWWLV6DJDE\0DJQXVVRQDQG0RUULVFKDS[L[9LJD*OXP¶V6DJDE\
6LU(GPXQG+HDGSQRWHZKHUHWKH%HUVHUNHUVDUHVDLGWRKDYHPDGGHQHGWKHPVHOYHVZLWKGUXJV'DVHQW
FRPSDUHVWKHPZLWKWKH0DOD\VZKRZRUNWKHPVHOYHVLQWRDIUHQ]\E\PHDQVRIDUUDFNRUKDVKHHVKDQGUXQDPXFN
6XFKDFFRUGLQJWRWKHXQDQLPRXVWHVWLPRQ\RIKLVWRULDQVZDVWKHFHOHEUDWHG³%HUVHUNHUUDJH´QRWSHFXOLDUWRWKH
1RUWKODQGDOWKRXJKWKHUHPRVWFRQVSLFXRXVO\PDQLIHVWHG7DNLQJQRZDVWHSLQDGYDQFHZHILQGWKDWLQ
FRPSDUDWLYHO\FLYLOL]HGFRXQWULHVWKHUHKDYHEHHQPDQ\FDVHVRIPRQVWURXVKRPLFLGDOLQVDQLW\7KHWZRPRVW
FHOHEUDWHGFDVHVDPRQJWKRVHFROOHFWHGE\0U%DULQJ*RXOGDUHWKRVHRIWKH0DUHFKDOGH5HW]LQDQGRI
(OL]DEHWKD+XQJDULDQFRXQWHVVLQWKHVHYHQWHHQWKFHQWXU\7KH&RXQWHVV(OL]DEHWKHQWLFHG\RXQJJLUOVLQWRKHUSDODFH
RQGLYHUVSUHWH[WVDQGWKHQFRROO\PXUGHUHGWKHPIRUWKHSXUSRVHRIEDWKLQJLQWKHLUEORRG7KHVSHFWDFOHRIKXPDQ
VXIIHULQJEHFDPHDWODVWVXFKDGHOLJKWWRKHUWKDWVKHZRXOGDSSO\ZLWKKHURZQKDQGVWKHPRVWH[FUXFLDWLQJWRUWXUHV
UHOLVKLQJWKHVKULHNVRIKHUYLFWLPVDVWKHHSLFXUHUHOLVKHVHDFKVLSRIKLVROG&KDWHDX0DUJDX[,QWKLVZD\VKHLVVDLG
WRKDYHPXUGHUHGVL[KXQGUHGDQGILIW\SHUVRQVEHIRUHKHUHYLOFDUHHUZDVEURXJKWWRDQHQGWKRXJKZKHQRQH
UHFROOHFWVWKHIDPRXVPHQLQEXFNUDPDQGWKHQRWRULRXVWULRRIFURZVRQHLVLQFOLQHGWRVWULNHRIIDFLSKHUDQGUHJDUG
VL[W\ILYHDVDVXIILFLHQWO\LPSRVLQJDQGIDUOHVVLPSUREDEOHQXPEHU%XWWKHFDVHRIWKH0DUHFKDOGH5HW]LVVWLOOPRUH
IULJKWIXO$PDUVKDORI)UDQFHDVFKRODUO\PDQDSDWULRWDQGDPDQRIKRO\OLIHKHEHFDPHVXGGHQO\SRVVHVVHGE\DQ
XQFRQWUROODEOHGHVLUHWRPXUGHUFKLOGUHQ'XULQJVHYHQ\HDUVKHFRQWLQXHGWRLQYHLJOHOLWWOHER\VDQGJLUOVLQWRKLV
FDVWOHDWWKHUDWHRIDERXW7:2($&+:((. " DQGWKHQSXWWKHPWRGHDWKLQYDULRXVZD\VWKDWKHPLJKWZLWQHVV
WKHLUDJRQLHVDQGEDWKHLQWKHLUEORRGH[SHULHQFLQJDIWHUHDFKRFFDVLRQWKHPRVWGUHDGIXOUHPRUVHEXWOHGRQE\DQ
LUUHVLVWLEOHFUDYLQJWRUHSHDWWKHFULPH:KHQWKLVXQSDUDOOHOHGLQLTXLW\ZDVILQDOO\EURXJKWWROLJKWWKHFDVWOHZDV
IRXQGWRFRQWDLQELQVIXOORIFKLOGUHQ¶VERQHV7KHKRUULEOHGHWDLOVRIWKHWULDODUHWREHIRXQGLQWKHKLVWRULHVRI)UDQFH
E\0LFKHOHWDQG0DUWLQ
*RLQJDVWHSIXUWKHUZHILQGFDVHVLQZKLFKWKHSURSHQVLW\WRPXUGHUKDVEHHQDFFRPSDQLHGE\FDQQLEDOLVP,QD
WDLORURI&KDORQVZDVVHQWHQFHGE\WKHSDUOLDPHQWRI3DULVWREHEXUQHGDOLYHIRUO\FDQWKURS\³7KLVZUHWFKHGPDQKDG
GHFR\HGFKLOGUHQLQWRKLVVKRSRUDWWDFNHGWKHPLQWKHJORDPLQJZKHQWKH\VWUD\HGLQWKHZRRGVKDGWRUQWKHPZLWK
KLVWHHWKDQGNLOOHGWKHPDIWHUZKLFKKHVHHPVFDOPO\WRKDYHGUHVVHGWKHLUIOHVKDVRUGLQDU\PHDWDQGWRKDYHHDWHQLW
ZLWKDJUHDWUHOLVK7KHQXPEHURIOLWWOHLQQRFHQWVZKRPKHGHVWUR\HGLVXQNQRZQ$ZKROHFDVNIXORIERQHVZDV
GLVFRYHUHGLQKLVKRXVH´>@$ERXWDEHJJDULQWKHYLOODJHRI3RORP\LDLQ*DOLFLDZDVSURYHGWRKDYHNLOOHGDQG
HDWHQIRXUWHHQFKLOGUHQ$KRXVHKDGRQHGD\FDXJKWILUHDQGEXUQWWRWKHJURXQGURDVWLQJRQHRIWKHLQPDWHVZKRZDV
XQDEOHWRHVFDSH7KHEHJJDUSDVVHGE\VRRQDIWHUDQGDVKHZDVVXIIHULQJIURPH[FHVVLYHKXQJHUFRXOGQRWUHVLVWWKH
WHPSWDWLRQRIPDNLQJDPHDORIIWKHFKDUUHGERG\)URPWKDWPRPHQWKHZDVWRUPHQWHGE\DFUDYLQJIRUKXPDQIOHVK
+HPHWDOLWWOHRUSKDQJLUODERXWQLQH\HDUVROGDQGJLYLQJKHUDSLQFKEHFNULQJWROGKHUWRVHHNIRURWKHUVOLNHLWXQGHU
DWUHHLQWKHQHLJKERXULQJZRRG6KHZDVVODLQFDUULHGWRWKHEHJJDU¶VKRYHODQGHDWHQ,QWKHFRXUVHRIWKUHH\HDUV
WKLUWHHQRWKHUFKLOGUHQP\VWHULRXVO\GLVDSSHDUHGEXWQRRQHNQHZZKRPWRVXVSHFW$WODVWDQLQQNHHSHUPLVVHGDSDLU
RIGXFNVDQGKDYLQJQRJRRGRSLQLRQRIWKLVEHJJDU¶VKRQHVW\ZHQWXQH[SHFWHGO\WRKLVFDELQEXUVWVXGGHQO\LQDWWKH
GRRUDQGWRKLVKRUURUIRXQGKLPLQWKHDFWRIKLGLQJXQGHUKLVFORDNDVHYHUHGKHDGDERZORIIUHVKEORRGVWRRGXQGHU
WKHRYHQDQGSLHFHVRIDWKLJKZHUHFRRNLQJRYHUWKHILUH>@
>@%DULQJ*RXOG:HUHZROYHVS
>@%DULQJ*RXOGRSFLWFKDS[LY
7KLVRFFXUUHGRQO\DERXWWZHQW\\HDUVDJRDQGWKHFULPLQDOWKRXJKUXOHGE\DQLQVDQHDSSHWLWHLVQRWNQRZQWRKDYH
EHHQVXEMHFWWRDQ\PHQWDOGHOXVLRQ%XWWKHUHKDYHEHHQDJUHDWPDQ\VLPLODUFDVHVLQZKLFKWKHKRPLFLGDORUFDQQLEDO
FUDYLQJKDVEHHQDFFRPSDQLHGE\JHQXLQHKDOOXFLQDWLRQ)RUPVRILQVDQLW\LQZKLFKWKHDIIOLFWHGSHUVRQVLPDJLQH
WKHPVHOYHVWREHEUXWHDQLPDOVDUHQRWSHUKDSVYHU\FRPPRQEXWWKH\DUHQRWXQNQRZQ,RQFHNQHZDSRRUGHPHQWHG
ROGPDQZKREHOLHYHGKLPVHOIWREHDKRUVHDQGZRXOGVWDQGE\WKHKRXUWRJHWKHUEHIRUHDPDQJHUQLEEOLQJKD\RU
GHOXGLQJKLPVHOIZLWKWKHSUHVHQFHRIVRGRLQJ0DQ\RIWKHFDQQLEDOVZKRVHFDVHVDUHUHODWHGE\0U%DULQJ*RXOGLQ
KLVFKDSWHURIKRUURUVDFWXDOO\EHOLHYHGWKHPVHOYHVWRKDYHEHHQWUDQVIRUPHGLQWRZROYHVRURWKHUZLOGDQLPDOV-HDQ
*UHQLHUZDVDER\RIWKLUWHHQSDUWLDOO\LGLRWLFDQGRIVWURQJO\PDUNHGFDQLQHSK\VLRJQRP\KLVMDZVZHUHODUJHDQG
SURMHFWHGIRUZDUGDQGKLVFDQLQHWHHWKZHUHXQQDWXUDOO\ORQJVRDVWRSURWUXGHEH\RQGWKHORZHUOLS+HEHOLHYHG
KLPVHOIWREHD ZHUHZROI2QHHYHQLQJPHHWLQJKDOIDGR]HQ\RXQJJLUOVKHVFDUHGWKHPRXWRIWKHLUZLWVE\WHOOLQJ
WKHPWKDWDVVRRQDVWKHVXQKDGVHWKHZRXOGWXUQLQWRDZROIDQGHDWWKHPIRUVXSSHU$IHZGD\VODWHURQHOLWWOHJLUO
KDYLQJJRQHRXWDWQLJKWIDOOWRORRNDIWHUWKHVKHHSZDVDWWDFNHGE\VRPHFUHDWXUHZKLFKLQKHUWHUURUVKHPLVWRRNIRUD
ZROIEXWZKLFKDIWHUZDUGVSURYHGWREHQRQHRWKHUWKDQ-HDQ*UHQLHU6KHEHDWKLPRIIZLWKKHUVKHHSVWDIIDQGIOHG
KRPH$VVHYHUDOFKLOGUHQKDGP\VWHULRXVO\GLVDSSHDUHGIURPWKHQHLJKERXUKRRG*UHQLHUZDVDWRQFHVXVSHFWHG
%HLQJEURXJKWEHIRUHWKHSDUOLDPHQWRI%RUGHDX[KHVWDWHGWKDWWZR\HDUVDJRKHKDGPHWWKH'HYLORQHQLJKWLQWKH
ZRRGVDQGKDGVLJQHGDFRPSDFWZLWKKLPDQGUHFHLYHGIURPKLPDZROIVNLQ6LQFHWKHQKHKDGURDPHGDERXWDVD
ZROIDIWHUGDUNUHVXPLQJKLVKXPDQVKDSHE\GD\OLJKW+HKDGNLOOHGDQGHDWHQVHYHUDOFKLOGUHQZKRPKHKDGIRXQG
DORQHLQWKHILHOGVDQGRQRQHRFFDVLRQKHKDGHQWHUHGDKRXVHZKLOHWKHIDPLO\ZHUHRXWDQGWDNHQWKHEDE\IURPLWV
FUDGOH$FDUHIXOLQYHVWLJDWLRQSURYHGWKHWUXWKRIWKHVHVWDWHPHQWVVRIDUDVWKHFDQQLEDOLVPZDVFRQFHUQHG7KHUHLV
QRGRXEWWKDWWKHPLVVLQJFKLOGUHQZHUHHDWHQE\-HDQ*UHQLHUDQGWKHUHLVQRGRXEWWKDWLQKLVRZQPLQGWKHKDOIZLWWHG
ER\ZDVILUPO\FRQYLQFHGWKDWKHZDVDZROI+HUHWKHO\FDQWKURS\ZDVFRPSOHWH
,QWKH\HDU³LQDZLOGDQGXQIUHTXHQWHGVSRWQHDU&DXGHVRPHFRXQWU\PHQFDPHRQHGD\XSRQWKHFRUSVHRID
ER\RIILIWHHQKRUULEO\PXWLODWHGDQGEHVSDWWHUHGZLWKEORRG$VWKHPHQDSSURDFKHGWZRZROYHVZKLFKKDGEHHQ
UHQGLQJWKHERG\ERXQGHGDZD\LQWRWKHWKLFNHW7KHPHQJDYHFKDVHLPPHGLDWHO\IROORZLQJWKHLUEORRG\WUDFNVWLOO
WKH\ORVWWKHPZKHQVXGGHQO\FURXFKLQJDPRQJWKHEXVKHVKLVWHHWKFKDWWHULQJZLWKIHDUWKH\IRXQGDPDQKDOI
QDNHGZLWKORQJKDLUDQGEHDUGDQGZLWKKLVKDQGVG\HGLQEORRG+LVQDLOVZHUHORQJDVFODZVDQGZHUHFORWWHGZLWK
IUHVKJRUHDQGVKUHGVRIKXPDQIOHVK´>@
>@%DULQJ*RXOGRSFLWS
7KLVPDQ-DFTXHV5RXOHWZDVDSRRUKDOIZLWWHGFUHDWXUHXQGHUWKHGRPLQLRQRIDFDQQLEDODSSHWLWH+HZDV
HPSOR\HGLQWHDULQJWRSLHFHVWKHFRUSVHRIWKHER\ZKHQWKHVHFRXQWU\PHQFDPHXS:KHWKHUWKHUHZHUHDQ\ZROYHVLQ
WKHFDVHH[FHSWZKDWWKHH[FLWHGLPDJLQDWLRQVRIWKHPHQPD\KDYHFRQMXUHGXS,ZLOOQRWSUHVXPHWRGHWHUPLQHEXWLW
LVFHUWDLQWKDW5RXOHWVXSSRVHGKLPVHOIWREHD ZROIDQGNLOOHGDQGDWHVHYHUDOSHUVRQVXQGHUWKHLQIOXHQFHRIWKH
GHOXVLRQ+HZDVVHQWHQFHGWRGHDWKEXWWKHSDUOLDPHQWRI3DULVUHYHUVHGWKHVHQWHQFHDQGFKDULWDEO\VKXWKLPXSLQD
PDGKRXVH
7KHDQQDOVRIWKH0LGGOH$JHVIXUQLVKPDQ\FDVHVVLPLODUWRWKHVHRI*UHQLHUDQG5RXOHW7KHLUVKDUHLQPDLQWDLQLQJ
WKHZHUHZROIVXSHUVWLWLRQLVXQGHQLDEOHEXWPRGHUQVFLHQFHILQGVLQWKHPQRWKLQJWKDWFDQQRWEHUHDGLO\H[SODLQHG
7KDWVWXSHQGRXVSURFHVVRIEUHHGLQJZKLFKZHFDOOFLYLOL]DWLRQKDVEHHQIRUORQJDJHVVWUHQJWKHQLQJWKRVHNLQGO\
VRFLDOIHHOLQJVE\WKHSRVVHVVLRQRIZKLFKZHDUHFKLHIO\GLVWLQJXLVKHGIURPWKHEUXWHVOHDYLQJRXUSULPLWLYHEHVWLDO
LPSXOVHVWRGLHIRUZDQWRIH[HUFLVHRUFKHFNLQJLQHYHU\SRVVLEOHZD\WKHLUIXUWKHUH[SDQVLRQE\OHJLVODWLYH
HQDFWPHQWV%XWWKLVSURFHVVZKLFKLVWUDQVIRUPLQJXVIURPVDYDJHVLQWRFLYLOL]HGPHQLVDYHU\VORZRQHDQGQRZ
DQGWKHQWKHUHRFFXUFDVHVRIZKDWSK\VLRORJLVWVFDOODWDYLVPRUUHYHUVLRQWRDQDQFHVWUDOW\SHRIFKDUDFWHU1RZDQG
WKHQSHUVRQVDUHERUQLQFLYLOL]HGFRXQWULHVZKRVHLQWHOOHFWXDOSRZHUVDUHRQDOHYHOZLWKWKRVHRIWKHPRVWGHJUDGHG
$XVWUDOLDQVDYDJHDQGWKHVHZHFDOOLGLRWV$QGQRZDQGWKHQSHUVRQVDUHERUQSRVVHVVHGRIWKHEHVWLDODSSHWLWHVDQG
FUDYLQJVRISULPLWLYHPDQKLVILHQGLVKFUXHOW\DQGKLVOLNLQJIRUKXPDQIOHVK0RGHUQSK\VLRORJ\NQRZVKRZWR
FODVVLI\DQGH[SODLQWKHVHDEQRUPDOFDVHVEXWWRWKHXQVFLHQWLILFPHGLDHYDOPLQGWKH\ZHUHH[SOLFDEOHRQO\RQWKH
K\SRWKHVLVRIDGLDEROLFDOPHWDPRUSKRVLV$QGWKHUHLVQRWKLQJVWUDQJHLQWKHIDFWWKDWLQDQDJHZKHQWKHSUHYDLOLQJ
KDELWVRIWKRXJKWUHQGHUHGWKHWUDQVIRUPDWLRQRIPHQLQWREHDVWVDQHDVLO\DGPLVVLEOHQRWLRQWKHVHPRQVWHUVRIFUXHOW\
DQGGHSUDYHGDSSHWLWHVKRXOGKDYHEHHQUHJDUGHGDVFDSDEOHRIWDNLQJRQEHVWLDOIRUPV1RULVLWVWUDQJHWKDWWKH
KDOOXFLQDWLRQXQGHUZKLFKWKHVHXQIRUWXQDWHZUHWFKHVODERXUHGVKRXOGKDYHWDNHQVXFKDVKDSHDVWRDFFRXQWWRWKHLU
IHHEOHLQWHOOLJHQFHIRUWKHH[LVWHQFHRIWKHDSSHWLWHVZKLFKWKH\ZHUHFRQVFLRXVRIQRWVKDULQJZLWKWKHLUQHLJKERXUVDQG
FRQWHPSRUDULHV,IDP\WKLVDSLHFHRIXQVFLHQWLILFSKLORVRSKL]LQJLWPXVWVRPHWLPHVEHDSSOLHGWRWKHH[SODQDWLRQRI
REVFXUHSV\FKRORJLFDODVZHOODVRISK\VLFDOSKHQRPHQD:KHUHWKHPRGHUQFDOPO\WDSVKLVIRUHKHDGDQGVD\V
³$UUHVWHGGHYHORSPHQW´WKHWHUULILHGDQFLHQWPDGHWKHVLJQRIWKHFURVVDQGFULHG³:HUHZROI´
:HVKDOOEHDVVLVWHGLQWKLVH[SODQDWLRQE\WXUQLQJDVLGHIRUDPRPHQWWRH[DPLQHWKHZLOGVXSHUVWLWLRQVDERXW
³FKDQJHOLQJV´ZKLFKFRQWULEXWHGDORQJZLWKVRPDQ\RWKHUVWRPDNHWKHOLYHVRIRXUDQFHVWRUVDQ[LRXVDQGPLVHUDEOH
7KHVHVXSHUVWLWLRQVZHUHIRUWKHPRVWSDUWDWWHPSWVWRH[SODLQWKHSKHQRPHQDRILQVDQLW\HSLOHSV\DQGRWKHUREVFXUH
QHUYRXVGLVHDVHV$PDQZKRKDVKLWKHUWRHQMR\HGSHUIHFWKHDOWKDQGZKRVHDFWLRQVKDYHEHHQFRQVLVWHQWDQGUDWLRQDO
VXGGHQO\ORVHVDOOVHOIFRQWURODQGVHHPVDFWXDWHGE\DZLOOIRUHLJQWRKLPVHOI0RGHUQVFLHQFHSRVVHVVHVWKHNH\WRWKLV
SKHQRPHQRQEXWLQIRUPHUWLPHVLWZDVH[SOLFDEOHRQO\RQWKHK\SRWKHVLVWKDWDGHPRQKDGHQWHUHGWKHERG\RIWKH
OXQDWLFRUHOVHWKDWWKHIDLULHVKDGVWROHQWKHUHDOPDQDQGVXEVWLWXWHGIRUKLPDGLDEROLFDOSKDQWRPH[DFWO\OLNHKLPLQ
VWDWXUHDQGIHDWXUHV+HQFHWKHQXPHURXVOHJHQGVRIFKDQJHOLQJVVRPHRIZKLFKDUHYHU\FXULRXV,Q,ULVKIRONORUHZH
ILQGWKHVWRU\RIRQH5LFNDUGVXUQDPHGWKH5DNHIURPKLVZRUWKOHVVFKDUDFWHU$JRRGQDWXUHGLGOHIHOORZKHVSHQW
DOOKLVHYHQLQJVLQGDQFLQJDQDFFRPSOLVKPHQWLQZKLFKQRRQHLQWKHYLOODJHFRXOGULYDOKLP2QHQLJKWLQWKHPLGVW
RIDOLYHO\UHHOKHIHOOGRZQLQDILW³+H¶VVWUXFNZLWKDIDLU\GDUW´H[FODLPHGDOOWKHIULHQGVDQGWKH\FDUULHGKLP
KRPHDQGQXUVHGKLPEXWKLVIDFHJUHZVRWKLQDQGKLVPDQQHUVRPRURVHWKDWE\DQGE\DOOEHJDQWRVXVSHFWWKDWWKH
WUXH5LFNDUGZDVJRQHDQGDFKDQJHOLQJSXWLQKLVSODFH5LFNDUGZLWKDOOKLVDFFRPSOLVKPHQWVZDVQRPXVLFLDQDQG
VRLQRUGHUWRSXWWKHPDWWHUWRDFUXFLDOWHVWDEDJSLSHZDVOHIWLQWKHURRPE\WKHVLGHRIKLVEHG7KHWULFNVXFFHHGHG
2QHKRWVXPPHU¶VGD\ZKHQDOOZHUHVXSSRVHGWREHLQWKHILHOGPDNLQJKD\VRPHPHPEHUVRIWKHIDPLO\VHFUHWHGLQ
DFORWKHVSUHVVVDZWKHEHGURRPGRRURSHQDOLWWOHZD\DQGDOHDQIR[\IDFHZLWKDSDLURIGHHSVXQNHQH\HVSHHU
DQ[LRXVO\DERXWWKHSUHPLVHV+DYLQJVDWLVILHGLWVHOIWKDWWKHFRDVWZDVFOHDUWKHIDFHZLWKGUHZWKHGRRUZDVFORVHG
DQGSUHVHQWO\VXFKUDYLVKLQJVWUDLQVRIPXVLFZHUHKHDUGDVQHYHUSURFHHGHGIURPDEDJSLSHEHIRUHRUVLQFHWKDWGD\
6RRQZDVKHDUGWKHUXVWOHRILQQXPHUDEOHIDLULHVFRPHWRGDQFHWRWKHFKDQJHOLQJ¶VPXVLF7KHQWKH³IDLU\PDQ´RI
WKHYLOODJHZKRZDVNHHSLQJZDWFKZLWKWKHIDPLO\KHDWHGDSDLURIWRQJVUHGKRWDQGZLWKGHDIHQLQJVKRXWVDOOEXUVW
DWRQFHLQWRWKHVLFNFKDPEHU7KHPXVLFKDGFHDVHGDQGWKHURRPZDVHPSW\EXWLQDWWKHZLQGRZJODUHGDILHQGLVK
IDFHZLWKVXFKIHDUIXOORRNVRIKDWUHGWKDWIRUDPRPHQWDOOVWRRGPRWLRQOHVVZLWKWHUURU%XWZKHQWKHIDLU\PDQ
UHFRYHULQJKLPVHOIDGYDQFHGZLWKWKHKRWWRQJVWRSLQFKLWVQRVHLWYDQLVKHGZLWKDQXQHDUWKO\\HOODQGWKHUHRQWKH
EHGZDV5LFNDUGVDIHDQGVRXQGDQGFXUHGRIKLVHSLOHSV\>@
>@.HQQHG\)LFWLRQVRIWKH,ULVK&HOWVS
&RPSDULQJWKLVOHJHQGZLWKQXPHURXVRWKHUVUHODWLQJWRFKDQJHOLQJVDQGVWULSSLQJRIIWKHIDQWDVWLFJDUERIIDLU\ORUH
ZLWKZKLFKSRSXODULPDJLQDWLRQKDVLQYHVWHGWKHPLWVHHPVLPSRVVLEOHWRGRXEWWKDWWKH\KDYHDULVHQIURPP\WKV
GHYLVHGIRUWKHSXUSRVHRIH[SODLQLQJWKHREVFXUHSKHQRPHQDRIPHQWDOGLVHDVH,IWKLVEHVRWKH\DIIRUGDQH[FHOOHQW
FROODWHUDOLOOXVWUDWLRQRIWKHEHOLHILQZHUHZROYHV7KHVDPHPHQWDOKDELWVZKLFKOHGPHQWRUHJDUGWKHLQVDQHRU
HSLOHSWLFSHUVRQDVDFKDQJHOLQJDQGZKLFKDOORZHGWKHPWRH[SODLQFDWDOHSV\DVWKHWHPSRUDU\GHSDUWXUHRIDZLWFK¶V
VRXOIURPLWVERG\ZRXOGHQDEOHWKHPWRDWWULEXWHDZROI¶VQDWXUHWRWKHPDQLDFRULGLRWZLWKFDQQLEDODSSHWLWHV$QG
ZKHQWKHP\WKIRUPLQJSURFHVVKDGJRWWKXVIDULWZRXOGQRWVWRSVKRUWRIDVVLJQLQJWRWKHXQIRUWXQDWHZUHWFKD
WDQJLEOHOXSLQHERG\IRUDOODQFLHQWP\WKRORJ\WHHPHGZLWKSUHFHGHQWVIRUVXFKDWUDQVIRUPDWLRQ
,WUHPDLQVIRUXVWRVXPXSWRWLHLQWRDEXQFKWKHNH\VZKLFKKDYHKHOSHGXVWRSHQHWUDWHLQWRWKHVHFUHWFDXVHVRIWKH
ZHUHZROIVXSHUVWLWLRQ,QDSUHYLRXVSDSHUZHVDZZKDWDKRVWRIP\WKVIDLU\WDOHVDQGVXSHUVWLWLRXVREVHUYDQFHVKDYH
VSUXQJIURPDWWHPSWVWRLQWHUSUHWRQHVLPSOHQDWXUDOSKHQRPHQRQWKHGHVFHQWRIILUHIURPWKHFORXGV+HUHRQWKH
RWKHUKDQGZHVHHZKDWDKHWHURJHQHRXVPXOWLWXGHRIP\WKLFDOHOHPHQWVPD\FRPELQHWREXLOGXSLQFRXUVHRIWLPHD
VLQJOHHQRUPRXVVXSHUVWLWLRQDQGZHVHHKRZFXULRXVO\IDFWDQGIDQF\KDYHFRRSHUDWHGLQNHHSLQJWKHVXSHUVWLWLRQ
IURPIDOOLQJ,QWKHILUVWSODFHWKHZRUVKLSRIGHDGDQFHVWRUVZLWKZROIWRWHPVRULJLQDWHGWKHQRWLRQRIWKH
WUDQVIRUPDWLRQRIPHQLQWRGLYLQHRUVXSHUKXPDQZROYHVDQGWKLVQRWLRQZDVFRQILUPHGE\WKHDPELJXRXVH[SODQDWLRQ
RIWKHVWRUPZLQGDVWKHUXVKLQJRIDWURRSRIGHDGPHQ¶VVRXOVRUDVWKHKRZOLQJRIZROIOLNHPRQVWHUV0HGLDHYDO
&KULVWLDQLW\UHWDLQHGWKHVHFRQFHSWLRQVPHUHO\FKDQJLQJWKHVXSHUKXPDQZROYHVLQWRHYLOGHPRQVDQGILQDOO\WKH
RFFXUUHQFHRIFDVHVRI%HUVHUNHUPDGQHVVDQGFDQQLEDOLVPDFFRPSDQLHGE\O\FDQWKURSLFKDOOXFLQDWLRQVEHLQJ
LQWHUSUHWHGDVGXHWRVXFKGHPRQLDFDOPHWDPRUSKRVLVJDYHULVHWRWKHZHUHZROIVXSHUVWLWLRQRIWKH0LGGOH$JHV7KH
HW\PRORJLFDOSURFHHGLQJVWRZKLFK0U&R[ZRXOGLQFRQWLQHQWO\DVFULEHWKHRULJLQRIWKHHQWLUHVXSHUVWLWLRQVHHPHGWR
PHWRKDYHSOD\HGDYHU\VXERUGLQDWHSDUWLQWKHPDWWHU7RVXSSRVHWKDW-HDQ*UHQLHULPDJLQHGKLPVHOIWREHD ZROI
EHFDXVHWKH*UHHNZRUGIRUZROIVRXQGHGOLNHWKHZRUGIRUOLJKWDQGWKXVJDYHULVHWRWKHVWRU\RIDOLJKWGHLW\ZKR
EHFDPHDZROIVHHPVWRPHTXLWHLQDGPLVVLEOH<HWDVIDUDVVXFKYHUEDOHTXLYRFDWLRQVPD\KDYHSUHYDLOHGWKH\
GRXEWOHVVKHOSHGWRVXVWDLQWKHGHOXVLRQ
7KXVZHQHHGQRORQJHUUHJDUGRXUZHUHZROIDVDQLQH[SOLFDEOHFUHDWXUHRIXQGHWHUPLQHGSHGLJUHH%XWDQ\DFFRXQWRI
KLPZRXOGEHTXLWHLPSHUIHFWZKLFKVKRXOGRPLWDOOFRQVLGHUDWLRQRIWKHPHWKRGVE\ZKLFKKLVFKDQJHRIIRUPZDV
DFFRPSOLVKHG%\WKHDQFLHQW5RPDQVWKHZHUHZROIZDVFRPPRQO\FDOOHGD³VNLQFKDQJHU´RU³WXUQFRDW´
YHUVLSHOOLV DQGVLPLODUHSLWKHWVZHUHDSSOLHGWRKLPLQWKH0LGGOH$JHV7KHPHGLDHYDOWKHRU\ZDVWKDWZKLOHWKH
ZHUHZROINHSWKLVKXPDQIRUPKLVKDLUJUHZLQZDUGVZKHQKHZLVKHGWREHFRPHDZROIKHVLPSO\WXUQHGKLPVHOI
LQVLGHRXW,QPDQ\WULDOVRQUHFRUGWKHSULVRQHUVZHUHFORVHO\LQWHUURJDWHGDVWRKRZWKLVLQYHUVLRQPLJKWEH
DFFRPSOLVKHGEXW,DPQRWDZDUHWKDWDQ\RQHRIWKHPHYHUJDYHDVDWLVIDFWRU\DQVZHU$WWKHPRPHQWRIFKDQJHWKHLU
PHPRULHVVHHPWRKDYHEHFRPHWHPSRUDULO\EHIRJJHG1RZDQGWKHQDSRRUZUHWFKKDGKLVDUPVDQGOHJVFXWRIIRU
ZDVSDUWLDOO\IOD\HGLQRUGHUWKDWWKHLQJURZLQJKDLUPLJKWEHGHWHFWHG>@$QRWKHUWKHRU\ZDVWKDWWKHSRVVHVVHG
SHUVRQKDGPHUHO\WRSXWRQDZROI¶VVNLQLQRUGHUWRDVVXPHLQVWDQWO\WKHOXSLQHIRUPDQGFKDUDFWHUDQGLQWKLVPD\
SHUKDSVEHVHHQDYDJXHUHPLQLVFHQFHRIWKHDOOHJHGIDFWWKDW%HUVHUNHUVZHUHLQWKHKDELWRIKDXQWLQJWKHZRRGVE\
QLJKWFORWKHGLQWKHKLGHVRIZROYHVRUEHDUV>@6XFKDZROIVNLQZDVNHSWE\WKHER\*UHQLHU5RXOHWRQWKHRWKHU
KDQGFRQIHVVHGWRXVLQJDPDJLFVDOYHRURLQWPHQW$IRXUWKPHWKRGRIEHFRPLQJDZHUHZROIZDVWRREWDLQDJLUGOH
XVXDOO\PDGHRIKXPDQVNLQ6HYHUDOFDVHVDUHUHODWHGLQ7KRUSH¶V³1RUWKHUQ0\WKRORJ\´2QHKRWGD\LQKDUYHVWWLPH
VRPHUHDSHUVOD\GRZQWRVOHHSLQWKHVKDGHZKHQRQHRIWKHPZKRFRXOGQRWVOHHSVDZWKHPDQQH[WKLPDULVH
TXLHWO\DQGJLUGKLPZLWKDVWUDSZKHUHXSRQKHLQVWDQWO\YDQLVKHGDQGDZROIMXPSHGXSIURPDPRQJWKHVOHHSHUVDQG
UDQRIIDFURVVWKHILHOGV$QRWKHUPDQZKRSRVVHVVHGVXFKDJLUGOHRQFHZHQWDZD\IURPKRPHZLWKRXWUHPHPEHULQJ
WRORFNLWXS+LVOLWWOHVRQFOLPEHGXSWRWKHFXSERDUGDQGJRWLWDQGDVKHSURFHHGHGWREXFNOHLWDURXQGKLVZDLVWKH
EHFDPHLQVWDQWO\WUDQVIRUPHGLQWRDVWUDQJHORRNLQJEHDVW-XVWWKHQKLVIDWKHUFDPHLQDQGVHL]LQJWKHJLUGOHUHVWRUHG
WKHFKLOGWRKLVQDWXUDOVKDSH7KHER\VDLGWKDWQRVRRQHUKDGKHEXFNOHGLWRQWKDQKHZDVWRUPHQWHGZLWKDUDJLQJ
KXQJHU
>@³(QD3DGRXHGLW:LHUXQKRPPHTXLVHFUR\DLWFKDQJHHQORXSFRXUDLWODFDPSDJQHDWWDTXDQWHWPHWWDQWD
PRUWFHX[TX¶LOUHQFRQWUDLW$SUHVELHQGHVGLIILFXOWHVRQSDUYLQWV¶HPSDUHUGHOXL,OGLWHQFRQILGHQFHDFHX[TXL
O¶DUUHWHUHQW-HVXLVYUDLPHQWXQORXSHWVLPDSHDXQHSDUDLWSDVHWUHFHOOHG¶XQORXSF¶HVWSDUFHTX¶HOOHHVWUHWRXUQHHHW
TXHOHVSRLOVVRQWHQGHGDQV²3RXUV¶DVVXUHUGXIDLWRQFRXSDOHPDOKHXUHX[DX[GLIIHUHQWHVSDUWLHVGXFRUSVRQOXL
HPSRUWDOHVEUDVHWOHVMDPEHV´²7DLQH'HO¶,QWHOOLJHQFH7RP,,S6HHWKHDFFRXQWRI6ODYRQLFZHUHZROYHVLQ
5DOVWRQ6RQJVRIWKH5XVVLDQ3HRSOHSS
>@0U&R[ZKRVHVFHSWLFLVPRQREVFXUHSRLQWVLQKLVWRU\UDWKHUVXUSDVVHVWKDWRI6LU*&/HZLVGLVPLVVHVZLWKD
VQHHUWKHVXEMHFWRIWKH%HUVHUNHUPDGQHVVREVHUYLQJWKDW³WKHXQDQLPRXVWHVWLPRQ\RIWKH1RUVHKLVWRULDQVLVZRUWKDV
PXFKDQGDVOLWWOHDVWKHFRQYLFWLRQVRI*ODQYLODQG+DOHRQWKHUHDOLW\RIZLWFKFUDIW´,KDYHQRWWKHVSHFLDONQRZOHGJH
UHTXLVLWHIRUSURQRXQFLQJDQRSLQLRQRQWKLVSRLQWEXW0U&R[¶VRUGLQDU\PHWKRGVRIGLVSRVLQJRIVXFKTXHVWLRQVDUH
QRWVXFKDVWRPDNHRQHIHHOREOLJHGWRDFFHSWKLVEDUHDVVHUWLRQXQDFFRPSDQLHGE\FULWLFDODUJXPHQWV7KHPDGQHVVRI
WKHEHDUVDUNVPD\QRGRXEWEHWKHVDPHWKLQJXVWKHIUHQ]\RI+HUDNOHVEXWVRPHWKLQJPRUHWKDQPHUHGRJPDWLVPLV
QHHGHGWRSURYHLW
6RPHWLPHVWKHZHUHZROIWUDQVIRUPDWLRQOHGWRXQOXFN\DFFLGHQWV$W&DVHEXUJDVDPDQDQGKLVZLIHZHUHPDNLQJ
KD\WKHZRPDQWKUHZGRZQKHUSLWFKIRUNDQGZHQWDZD\WHOOLQJKHUKXVEDQGWKDWLIDZLOGEHDVWVKRXOGFRPHWRKLP
GXULQJKHUDEVHQFHKHPXVWWKURZKLVKDWDWLW3UHVHQWO\DVKHZROIUXVKHGWRZDUGVKLP7KHPDQWKUHZKLVKDWDWLWEXW
DER\FDPHXSIURPDQRWKHUSDUWRIWKHILHOGDQGVWDEEHGWKHDQLPDOZLWKKLVSLWFKIRUNZKHUHXSRQLWYDQLVKHGDQGWKH
ZRPDQ¶VGHDGERG\OD\DWKLVIHHW
$SDUDOOHOOHJHQGVKRZVWKDWWKLVZRPDQZLVKHGWRKDYHWKHKDWWKURZQDWKHULQRUGHUWKDWVKHPLJKWEHKHQFHIRUWK
IUHHIURPKHUOLDELOLW\WREHFRPHDZHUHZROI$PDQZDVRQHQLJKWUHWXUQLQJZLWKKLVZLIHIURPDPHUU\PDNLQJZKHQ
KHIHOWWKHFKDQJHFRPLQJRQ*LYLQJKLVZLIHWKHUHLQVKHMXPSHGIURPWKHZDJRQWHOOLQJKHUWRVWULNHZLWKKHUDSURQ
DWDQ\DQLPDOZKLFKPLJKWFRPHWRKHU,QDIHZPRPHQWVDZROIUDQXSWRWKHVLGHRIWKHYHKLFOHDQGDVWKHZRPDQ
VWUXFNRXWZLWKKHUDSURQLWELWRIIDSLHFHDQGUDQDZD\3UHVHQWO\WKHPDQUHWXUQHGZLWKWKHSLHFHRIDSURQLQKLV
PRXWKDQGFRQVROHGKLVWHUULILHGZLIHZLWKWKHLQIRUPDWLRQWKDWWKHHQFKDQWPHQWKDGOHIWKLPIRUHYHU
$WHUULEOHFDVHDWDYLOODJHLQ$XYHUJQHKDVIRXQGLWVZD\LQWRWKHDQQDOVRIZLWFKFUDIW³$JHQWOHPDQZKLOHKXQWLQJ
ZDVVXGGHQO\DWWDFNHGE\DVDYDJHZROIRIPRQVWURXVVL]H,PSHQHWUDEOHE\KLVVKRWWKHEHDVWPDGHDVSULQJXSRQWKH
KHOSOHVVKXQWVPDQZKRLQWKHVWUXJJOHOXFNLO\RUXQOXFNLO\IRUWKHXQIRUWXQDWHODG\FRQWULYHGWRFXWRIIRQHRILWV
IRUHSDZV7KLVWURSK\KHSODFHGLQKLVSRFNHWDQGPDGHWKHEHVWRIKLVZD\KRPHZDUGVLQVDIHW\2QWKHURDGKHPHW
DIULHQGWRZKRPKHH[KLELWHGDEOHHGLQJSDZRUUDWKHU DVLWQRZDSSHDUHG DZRPDQ¶VKDQGXSRQZKLFKZDVD
ZHGGLQJULQJ+LVZLIH¶VULQJZDVDWRQFHUHFRJQL]HGE\WKHRWKHU+LVVXVSLFLRQVDURXVHGKHLPPHGLDWHO\ZHQWLQ
VHDUFKRIKLVZLIHZKRZDVIRXQGVLWWLQJE\WKHILUHLQWKHNLWFKHQKHUDUPKLGGHQEHQHDWKKHUDSURQZKHQWKH
KXVEDQGVHL]LQJKHUE\WKHDUPIRXQGKLVWHUULEOHVXVSLFLRQVYHULILHG7KHEOHHGLQJVWXPSZDVWKHUHHYLGHQWO\MXVW
IUHVKIURPWKHZRXQG6KHZDVJLYHQLQWRFXVWRG\DQGLQWKHHYHQWZDVEXUQHGDW5LRPLQSUHVHQFHRIWKRXVDQGVRI
VSHFWDWRUV´>@
>@:LOOLDPV6XSHUVWLWLRQVRI:LWFKFUDIWS6HHDSDUDOOHOFDVHRIDFDWZRPDQLQ7KRUSH¶V1RUWKHUQ
0\WKRORJ\,,³&HUWDLQZLWFKHVDW7KXUVRIRUDORQJWLPHWRUPHQWHGDQKRQHVWIHOORZXQGHUWKHXVXDOIRUPRIFDWV
WLOORQHQLJKWKHSXWWKHPWRIOLJKWZLWKKLVEURDGVZRUGDQGFXWRIIWKHOHJRIRQHOHVVQLPEOHWKDQWKHUHVWWDNLQJLWXS
WRKLVDPD]HPHQWKHIRXQGLWWREHD ZRPDQ¶VOHJDQGQH[WPRUQLQJKHGLVFRYHUHGWKHROGKDJLWVRZQHUZLWKEXWRQH
OHJOHIW´²7\ORU3ULPLWLYH&XOWXUH,
6RPHWLPHVDZHUHZROIZDVFXUHGPHUHO\E\UHFRJQL]LQJKLPZKLOHLQKLVEUXWHVKDSH$6ZHGLVKOHJHQGWHOOVRID
FRWWDJHUZKRRQHQWHULQJWKHIRUHVWRQHGD\ZLWKRXWUHFROOHFWLQJWRVD\KLV3DWWHU1RVWHUJRWLQWRWKHSRZHURID7UROO
ZKRFKDQJHGKLPLQWRDZROI)RUPDQ\\HDUVKLVZLIHPRXUQHGKLPDVGHDG%XWRQH&KULVWPDVHYHWKHROG7UROO
GLVJXLVHGDVDEHJJDUZRPDQFDPHWRWKHKRXVHIRUDOPVDQGEHLQJWDNHQLQDQGNLQGO\WUHDWHGWROGWKHZRPDQWKDW
KHUKXVEDQGPLJKWYHU\OLNHO\DSSHDUWRKHULQZROIVKDSH*RLQJDWQLJKWWRWKHSDQWU\WROD\DVLGHDMRLQWRIPHDWIRU
WRPRUURZ¶VGLQQHUVKHVDZDZROIVWDQGLQJZLWKLWVSDZVRQWKHZLQGRZVLOOORRNLQJZLVWIXOO\LQDWKHU³$KGHDUHVW´
VDLGVKH³LI,NQHZWKDWWKRXZHUWUHDOO\P\KXVEDQG,ZRXOGJLYHWKHHDERQH´:KHUHXSRQWKHZROIVNLQIHOORIIDQG
KHUKXVEDQGVWRRGEHIRUHKHULQWKHVDPHROGFORWKHVZKLFKKHKDGRQWKHGD\WKDWWKH7UROOJRWKROGRIKLP
,Q'HQPDUNLWZDVEHOLHYHGWKDWLIDZRPDQZHUHWRFUHHSWKURXJKDFROW¶VSODFHQWDOPHPEUDQHVWUHWFKHGEHWZHHQIRXU
VWLFNVVKHZRXOGIRUWKHUHVWRIKHUOLIHEULQJIRUWKFKLOGUHQZLWKRXWSDLQRULOOQHVVEXWDOOWKHER\VZRXOGLQVXFKFDVH
EHZHUHZROYHVDQGDOOWKHJLUOV0DUDVRUQLJKWPDUHV,QWKLVJURWHVTXHVXSHUVWLWLRQDSSHDUVWKDWFXULRXVNLQVKLS
EHWZHHQWKHZHUHZROIDQGWKHZLIHRUPDLGHQRIVXSHUQDWXUDOUDFHZKLFKVHUYHVDGPLUDEO\WRLOOXVWUDWHWKHQDWXUHRI
ERWKFRQFHSWLRQVDQGWKHHOXFLGDWLRQRIZKLFKVKDOORFFXS\XVWKURXJKRXWWKHUHPDLQGHURIWKLVSDSHU
,WLVSHUKDSVQHHGOHVVWRVWDWHWKDWLQWKHSHUVRQDOLW\RIWKHQLJKWPDUHRU0DUDWKHUHZDVQRWKLQJHTXLQH7KH0DUD
ZDVDIHPDOHGHPRQ>@ZKRZRXOGFRPHDWQLJKWDQGWRUPHQWPHQRUZRPHQE\FURXFKLQJRQWKHLUFKHVWVRU
VWRPDFKVDQGVWRSSLQJWKHLUUHVSLUDWLRQ7KHVFHQHLVZHOOHQRXJKUHSUHVHQWHGLQ)XVHOL¶VSLFWXUHWKRXJKWKHIUHQ]LHG
ORRNLQJKRUVHZKLFKWKHUHDFFRPSDQLHVWKHGHPRQKDVQRSODFHLQWKHRULJLQDOVXSHUVWLWLRQ$1HWKHUODQGLVKVWRU\
LOOXVWUDWHVWKHFKDUDFWHURIWKH0DUD7ZR\RXQJPHQZHUHLQORYHZLWKWKHVDPHGDPVHO2QHRIWKHPEHLQJ
WRUPHQWHGHYHU\QLJKWE\D0DUDVRXJKWDGYLFHIURPKLVULYDODQGLWZDVDWUHDFKHURXVFRXQVHOWKDWKHJRW³+ROGD
VKDUSNQLIHZLWKWKHSRLQWWRZDUGV\RXUEUHDVWDQG\RX¶OOQHYHUVHHWKH0DUDDJDLQ´VDLGWKLVIDOVHIULHQG7KHODG
WKDQNHGKLPEXWZKHQKHOD\GRZQWRUHVWKHWKRXJKWLWDVZHOOWREHRQWKHVDIHVLGHDQGVRKHOGWKHNQLIHKDQGOH
GRZQZDUG6RZKHQWKH0DUDFDPHLQVWHDGRIIRUFLQJWKHEODGHLQWRKLVEUHDVWVKHFXWKHUVHOIEDGO\DQGIOHGKRZOLQJ
DQGOHWXVKRSHWKRXJKWKHOHJHQGKHUHOHDYHVXVLQWKHGDUNWKDWWKLVSRRU\RXWKZKRLVVDLGWRKDYHEHHQWKHFRPHOLHU
RIWKHWZRUHYHQJHGKLPVHOIRQKLVPDOLFLRXVULYDOE\PDUU\LQJWKH\RXQJODG\
>@³7KHPDUHLQQLJKWPDUHPHDQVVSLULWHOIRUQ\PSKFRPSDUH$QJOR6D[RQZXGXUPDHUH ZRRGPDUH  HFKR´²
7\ORU3ULPLWLYH&XOWXUH9RO,,S
%XWWKH0DUDVRPHWLPHVDSSHDUHGLQOHVVUHYROWLQJVKDSHDQGEHFDPHWKHPLVWUHVVRUHYHQWKHZLIHRIVRPHPRUWDO
PDQWRZKRPVKHKDSSHQHGWRWDNHDIDQF\,QVXFKFDVHVVKHZRXOGYDQLVKRQEHLQJUHFRJQL]HG7KHUHLVDZHOOWROG
PRQNLVKWDOHRIDSLRXVNQLJKWZKRMRXUQH\LQJRQHGD\WKURXJKWKHIRUHVWIRXQGDEHDXWLIXOODG\VWULSSHGQDNHGDQG
WLHGWRDWUHHKHUEDFNDOOFRYHUHGZLWKGHHSJDVKHVVWUHDPLQJZLWKEORRGIURPDIORJJLQJZKLFKVRPHEDQGLWVKDG
JLYHQKHU2IFRXUVHKHWRRNKHUKRPHWRKLVFDVWOHDQGPDUULHGKHUDQGIRUDZKLOHWKH\OLYHGYHU\KDSSLO\WRJHWKHU
DQGWKHIDPHRIWKHODG\¶VEHDXW\ZDVVRJUHDWWKDWNLQJVDQGHPSHURUVKHOGWRXUQDPHQWVLQKRQRURIKHU%XWWKLVSLRXV
NQLJKWXVHGWRJRWRPDVVHYHU\6XQGD\DQGJUHDWO\ZDVKHVFDQGDOL]HGZKHQKHIRXQGWKDWKLVZLIHZRXOGQHYHUVWD\
WRDVVLVWLQWKH&UHGREXWZRXOGDOZD\VJHWXSDQGZDONRXWRIFKXUFKMXVWDVWKHFKRLUVWUXFNXS$OOKHUKXVEDQG¶V
FRD[LQJZDVRIQRXVHWKUHDWVDQGHQWUHDWLHVZHUHDOLNHSRZHUOHVVHYHQWRHOLFLWDQH[SODQDWLRQRIWKLVVWUDQJHFRQGXFW
$WODVWWKHJRRGPDQGHWHUPLQHGWRXVHIRUFHDQGVRRQH6XQGD\DVWKHODG\JRWXSWRJRRXWDFFRUGLQJWRFXVWRPKH
VHL]HGKHUE\WKHDUPDQGVWHUQO\FRPPDQGHGKHUWRUHPDLQ+HUZKROHIUDPHZDVVXGGHQO\FRQYXOVHGDQGKHUGDUN
H\HVJOHDPHGZLWKZHLUGXQHDUWKO\EULOOLDQF\7KHVHUYLFHVSDXVHGIRUDPRPHQWDQGDOOH\HVZHUHWXUQHGWRZDUGWKH
NQLJKWDQGKLVODG\³,Q*RG¶VQDPHWHOOPHZKDWWKRXDUW´VKRXWHGWKHNQLJKWDQGLQVWDQWO\VD\VWKHFKURQLFOHU³WKH
ERGLO\IRUPRIWKHODG\PHOWHGDZD\DQGZDVVHHQQRPRUHZKLOVWZLWKDFU\RIDQJXLVKDQGRIWHUURUDQHYLOVSLULWRI
PRQVWURXVIRUPURVHIURPWKHJURXQGFODYHWKHFKDSHOURRIDVXQGHUDQGGLVDSSHDUHGLQWKHDLU´
,QD'DQLVKOHJHQGWKH0DUDEHWUD\VKHUDIILQLW\WRWKH1L[LHVRU6ZDQPDLGHQV$SHDVDQWGLVFRYHUHGWKDWKLV
VZHHWKHDUWZDVLQWKHKDELWRIFRPLQJWRKLPE\QLJKWDVD0DUD+HNHSWVWULFWZDWFKXQWLOKHGLVFRYHUHGKHUFUHHSLQJ
LQWRWKHURRPWKURXJKDVPDOONQRWKROHLQWKHGRRU1H[WGD\KHPDGHDSHJDQGDIWHUVKHKDGFRPHWRKLPGURYHLQ
WKHSHJVRWKDWVKHZDVXQDEOHWRHVFDSH7KH\ZHUHPDUULHGDQGOLYHGWRJHWKHUPDQ\\HDUVEXWRQHQLJKWLWKDSSHQHG
WKDWWKHPDQMRNLQJZLWKKLVZLIHDERXWWKHZD\LQZKLFKKHKDGVHFXUHGKHUGUHZWKHSHJIURPWKHNQRWKROHWKDWVKH
PLJKWVHHKRZVKHKDGHQWHUHGKLVURRP$VVKHSHHSHGWKURXJKVKHEHFDPHVXGGHQO\TXLWHVPDOOSDVVHGRXWDQGZDV
QHYHUVHHQDJDLQ
7KHZHOONQRZQSDWKRORJLFDOSKHQRPHQDRIQLJKWPDUHDUHVXIILFLHQWWRDFFRXQWIRUWKHPHGLDHYDOWKHRU\RIDILHQG
ZKRVLWVXSRQRQH¶VERVRPDQGKLQGHUVUHVSLUDWLRQEXWDVZHFRPSDUHWKHVHYDULRXVOHJHQGVUHODWLQJWRWKH0DUDZH
VHHWKDWDPRUHUHFRQGLWHH[SODQDWLRQLVQHHGHGWRDFFRXQWIRUDOOKHUSHFXOLDULWLHV,QGLJHVWLRQPD\LQWHUIHUHZLWKRXU
EUHDWKLQJEXWLWGRHVQRWPDNHEHDXWLIXOZRPHQFUDZOWKURXJKNH\KROHVQRUGRHVLWEULQJZLYHVIURPWKHVSLULWZRUOG
7KH0DUDEHORQJVWRDQDQFLHQWIDPLO\DQGLQSDVVLQJIURPWKHUHJLRQVRIPRQNLVKVXSHUVWLWLRQWRWKRVHRISXUH
P\WKRORJ\ZHILQGWKDWOLNHKHUNLQVPDQWKHZHUHZROIVKHKDGRQFHVHHQEHWWHUGD\V&KULVWLDQLW\PDGHDGHPRQRI
WKH0DUDDQGDGRSWHGWKHWKHRU\WKDW6DWDQHPSOR\HGWKHVHVHGXFWLYHFUHDWXUHVDVDJHQWVIRUUXLQLQJKXPDQVRXOV
6XFKLVWKHFKDUDFWHURIWKHNQLJKW¶VZLIHLQWKHPRQNLVKOHJHQGMXVWFLWHG%XWLQWKH'DQLVKWDOHWKH0DUDDSSHDUVDV
RQHRIWKDWODUJHIDPLO\RIVXSHUQDWXUDOZLYHVZKRDUHSHUPLWWHGWROLYHZLWKPRUWDOPHQXQGHUFHUWDLQFRQGLWLRQVEXW
ZKRDUHFRPSHOOHGWRIOHHDZD\ZKHQWKHVHFRQGLWLRQVDUHEURNHQDVLVDOZD\VVXUHWREHWKHFDVH7KHHOGHVWDQGRQH
RIWKHORYHOLHVWRIWKLVIDPLO\LVWKH+LQGXQ\PSK8UYDVLZKRVHORYHDGYHQWXUHVZLWK3XUXUDYDVDUHQDUUDWHGLQWKH
3XUDQDVDQGIRUPWKHVXEMHFWRIWKHZHOONQRZQDQGH[TXLVLWH6DQVNULWGUDPDE\.DOLGDVD8UYDVLLVDOORZHGWROLYH
ZLWK3XUXUDYDVVRORQJDVVKHGRHVQRWVHHKLPXQGUHVVHG%XWRQHQLJKWKHUNLQVPHQWKH*DQGKDUYDVRUFORXG
GHPRQVYH[HGDWKHUORQJDEVHQFHIURPKHDYHQUHVROYHGWRJHWKHUDZD\IURPKHUPRUWDOFRPSDQLRQ7KH\VWROHDSHW
ODPEZKLFKKDGEHHQWLHGDWWKHIRRWRIKHUFRXFKZKHUHDWVKHELWWHUO\XSEUDLGHGKHUKXVEDQG,QUDJHDQG
PRUWLILFDWLRQ3XUXUDYDVVSUDQJXSZLWKRXWWKURZLQJRQKLVWXQLFDQGJUDVSLQJKLVVZRUGVRXJKWWKHUREEHU7KHQWKH
ZLFNHG*DQGKDUYDVVHQWDIODVKRIOLJKWQLQJDQG8UYDVLVHHLQJKHUQDNHGKXVEDQGLQVWDQWO\YDQLVKHG
7KHGLIIHUHQWYHUVLRQVRIWKLVOHJHQGZKLFKKDYHEHHQHODERUDWHO\DQDO\]HGE\FRPSDUDWLYHP\WKRORJLVWVOHDYHQR
GRXEWWKDW8UYDVLLVRQHRIWKHGDZQQ\PSKVRUEULJKWIOHHF\FORXGVRIHDUO\PRUQLQJZKLFKYDQLVKDVWKHVSOHQGRXURI
WKHVXQLVXQYHLOHG:HVDZLQWKHSUHFHGLQJSDSHUWKDWWKHDQFLHQW$U\DQVUHJDUGHGWKHVN\DVDVHDRUJUHDWODNHDQG
WKDWWKHFORXGVZHUHH[SODLQHGYDULRXVO\DV3KDLDNLDQVKLSVZLWKELUGOLNHEHDNVVDLOLQJRYHUWKLVODNHRUDVEULJKWELUGV
RIGLYHUVVKDSHVDQGKXHV7KHOLJKWIOHHF\FLUUKLZHUHUHJDUGHGDVPHUPDLGVRUDVVZDQVRUDVPDLGHQVZLWKVZDQ¶V
SOXPDJH,Q6DQVNULWWKH\DUHFDOOHG$SVDUDVRU³WKRVHZKRPRYHLQWKHZDWHU´DQGWKH(OYHVDQG0DUDVRI7HXWRQLF
P\WKRORJ\KDYHWKHVDPHVLJQLILFDQFH8UYDVLDSSHDUVLQRQHOHJHQGDVDELUGDQGD6RXWK*HUPDQSUHVFULSWLRQIRU
JHWWLQJULGRIWKH0DUDDVVHUWVWKDWLIVKHEHZUDSSHGXSLQWKHEHGFORWKHVDQGILUPO\KHOGDZKLWHGRYHZLOOIRUWKZLWK
IO\IURPWKHURRPOHDYLQJWKHEHGFORWKHVHPSW\>@
>@6HH.XKQ+HUDENXQIWGHV)HXHUVS:HEHU,QGLVFKH6WXGLHQ,:ROI%HLWUDJH]XUGHXWVFKHQ
0\WKRORJLH,,0XOOHU&KLSV,,
,QWKHVWRU\RI0HOXVLQDWKHFORXGPDLGHQDSSHDUVDVDNLQGRIPHUPDLGEXWLQRWKHUUHVSHFWVWKHOHJHQGUHVHPEOHVWKDW
RI8UYDVL5D\PRQG&RXQWGHOD)RUHWRI3RLWRXKDYLQJE\DQDFFLGHQWNLOOHGKLVSDWURQDQGEHQHIDFWRUGXULQJD
KXQWLQJH[FXUVLRQIOHGLQWHUURUDQGGHVSDLULQWRWKHGHHSUHFHVVHVRIWKHIRUHVW$OOWKHDIWHUQRRQDQGHYHQLQJKH
ZDQGHUHGWKURXJKWKHWKLFNGDUNZRRGVXQWLODWPLGQLJKWKHFDPHXSRQDVWUDQJHVFHQH$OODWRQFH³WKHERXJKVRIWKH
WUHHVEHFDPHOHVVLQWHUODFHGDQGWKHWUXQNVIHZHUQH[WPRPHQWKLVKRUVHFUDVKLQJWKURXJKWKHVKUXEVEURXJKWKLPRXW
RQDSOHDVDQWJODGHZKLWHZLWKULPHDQGLOOXPLQHGE\WKHQHZPRRQLQWKHPLGVWEXEEOHGXSDOLPSLGIRXQWDLQDQG
IORZHGDZD\RYHUDSHEEO\IORRUZLWKDVRRWKLQJPXUPXU1HDUWKHIRXQWDLQKHDGVDWWKUHHPDLGHQVLQJOLPPHULQJ
ZKLWHGUHVVHVZLWKORQJZDYLQJJROGHQKDLUDQGIDFHVRILQH[SUHVVLEOHEHDXW\´>@2QHRIWKHPDGYDQFHGWRPHHW
5D\PRQGDQGDFFRUGLQJWRDOOP\WKRORJLFDOSUHFHGHQWWKH\ZHUHEHWURWKHGEHIRUHGD\EUHDN,QGXHWLPHWKHIRXQWDLQ
Q\PSK>@EHFDPH&RXQWHVVGHOD)RUHWEXWKHUKXVEDQGZDVJLYHQWRXQGHUVWDQGWKDWDOOKHU6DWXUGD\VZRXOGEH
SDVVHGLQVWULFWHVWVHFOXVLRQXSRQZKLFKKHPXVWQHYHUGDUHWRLQWUXGHXQGHUSHQDOW\RIORVLQJKHUIRUHYHU)RUPDQ\
\HDUVDOOZHQWZHOOVDYHWKDWWKHIDLU0HOXVLQD¶VFKLOGUHQZHUHZLWKRXWH[FHSWLRQPLVVKDSHQRUGLVILJXUHG%XWDIWHUD
ZKLOHWKLVVWUDQJHZHHNO\VHFOXVLRQJRWEUXLWHGDERXWDOORYHUWKHQHLJKERXUKRRGDQGSHRSOHVKRRNWKHLUKHDGVDQG
ORRNHGJUDYHDERXWLW6RPDQ\JRVVLSLQJWDOHVFDPHWRWKH&RXQW¶VHDUVWKDWKHEHJDQWRJURZDQ[LRXVDQGVXVSLFLRXV
DQGDWODVWKHGHWHUPLQHGWRNQRZWKHZRUVW+HZHQWRQH6DWXUGD\WR0HOXVLQD¶VSULYDWHDSDUWPHQWVDQGJRLQJ
WKURXJKRQHHPSW\URRPDIWHUDQRWKHUDWODVWFDPHWRDORFNHGGRRUZKLFKRSHQHGLQWRDEDWKORRNLQJWKURXJKD
NH\KROHWKHUHKHVDZWKH&RXQWHVVWUDQVIRUPHGIURPWKHZDLVWGRZQZDUGVLQWRDILVKGLVSRUWLQJKHUVHOIOLNHD
PHUPDLGLQWKHZDWHU2IFRXUVHKHFRXOGQRWNHHSWKHVHFUHWEXWZKHQVRPHWLPHDIWHUZDUGVWKH\TXDUUHOOHGPXVW
QHHGVDGGUHVVKHUDV³DYLOHVHUSHQWFRQWDPLQDWRURIKLVKRQRXUDEOHUDFH´6RVKHGLVDSSHDUHGWKURXJKWKHZLQGRZEXW
HYHUDIWHUZDUGKRYHUHGDERXWKHUKXVEDQG¶VFDVWOHRI/XVLJQDQOLNHD%DQVKHHZKHQHYHURQHRILWVORUGVZDVDERXWWR
GLH
>@%DULQJ*RXOG&XULRXV0\WKV,,
>@7KHZRUGQ\PSKLWVHOIPHDQV³FORXGPDLGHQ´DVLVLOOXVWUDWHGE\WKHNLQVKLSEHWZHHQWKH*UHHNQXPSKDQGWKH
/DWLQQXEHV
7KHZHOONQRZQVWRU\RI8QGLQHLVVLPLODUWRWKDWRI0HOXVLQDVDYHWKDWWKHQDLDG¶VGHVLUHWRREWDLQDKXPDQVRXOLVD
FRQFHSWLRQIRUHLJQWRWKHVSLULWRIWKHP\WKDQGPDUNVWKHGHJUDGDWLRQZKLFK&KULVWLDQLW\KDGLQIOLFWHGXSRQWKH
GHQL]HQVRIIDLU\ODQG,QRQHRI'DVHQW¶VWDOHVWKHZDWHUPDLGHQLVUHSODFHGE\DNLQGRIZHUHZROI$ZKLWHEHDU
PDUULHVD\RXQJJLUOEXWDVVXPHVWKHKXPDQVKDSHDWQLJKW6KHLVQHYHUWRORRNXSRQKLPLQKLVKXPDQVKDSHEXWKRZ
FRXOGD\RXQJEULGHEHH[SHFWHGWRREH\VXFKDQLQMXQFWLRQDVWKDW"6KHOLJKWVDFDQGOHZKLOHKHLVVOHHSLQJDQG
GLVFRYHUVWKHKDQGVRPHVWSULQFHLQWKHZRUOGXQOXFNLO\VKHGURSVWDOORZRQKLVVKLUWDQGWKDWWHOOVWKHVWRU\%XWVKHLV
PRUHIRUWXQDWHWKDQSRRU5D\PRQGIRUDIWHUDWLUHVRPHMRXUQH\WRWKH³ODQGHDVWRIWKHVXQDQGZHVWRIWKHPRRQ´DQG
DQDUGXRXVZDVKLQJPDWFKZLWKDSDUFHORIXJO\7UROOVVKHZDVKHVRXWWKHVSRWVDQGHQGVKHUKXVEDQG¶V
HQFKDQWPHQW>@
>@7KLVLVVXEVWDQWLDOO\LGHQWLFDOZLWKWKHVWRULHVRI%HDXW\DQGWKH%HDVW(URVDQG3V\FKH*DQGKDUED6HQDHWF
,QWKHPDMRULW\RIWKHVHOHJHQGVKRZHYHUWKH$SVDUDVRUFORXGPDLGHQKDVDVKLUWRIVZDQ¶VIHDWKHUVZKLFKSOD\VWKH
VDPHSDUWDVWKHZROIVNLQFDSHRUJLUGOHRIWKHZHUHZROI,I\RXFRXOGJHWKROGRIDZHUHZROI¶VVDFNDQGEXUQLWD
SHUPDQHQWFXUHZDVHIIHFWHG1RGDQJHURIDUHODSVHXQOHVVWKH'HYLOIXUQLVKHGKLPZLWKDQHZZROIVNLQ6RWKHVZDQ
PDLGHQNHSWKHUKXPDQIRUPDVORQJDVVKHZDVGHSULYHGRIKHUWXQLFRIIHDWKHUV,QGR(XURSHDQIRONORUHWHHPVZLWK
VWRULHVRIVZDQPDLGHQVIRUFLEO\ZRRHGDQGZRQE\PRUWDOVZKRKDGVWROHQWKHLUFORWKHV$PDQWUDYHOOLQJDORQJWKH
URDGSDVVHVE\DODNHZKHUHVHYHUDOORYHO\JLUOVDUHEDWKLQJWKHLUGUHVVHVPDGHRIIHDWKHUVFXULRXVO\DQGGDLQWLO\
ZRYHQOLHRQWKHVKRUH+HDSSURDFKHVWKHSODFHFDXWLRXVO\DQGVWHDOVRQHRIWKHVHGUHVVHV>@:KHQWKHJLUOVKDYH
ILQLVKHGWKHLUEDWKLQJWKH\DOOFRPHDQGJHWWKHLUGUHVVHVDQGVZLPDZD\DVVZDQVEXWWKHRQHZKRVHGUHVVLVVWROHQ
PXVWQHHGVVWD\RQVKRUHDQGPDUU\WKHWKLHI,WLVQHHGOHVVWRDGGWKDWWKH\OLYHKDSSLO\WRJHWKHUIRUPDQ\\HDUVRUWKDW
ILQDOO\WKHJRRGPDQDFFLGHQWDOO\OHDYHVWKHFXSERDUGGRRUXQORFNHGZKHUHXSRQKLVZLIHJHWVEDFNKHUVZDQVKLUWDQG
IOLHVDZD\IURPKLPQHYHUWRUHWXUQ%XWLWLVQRWDOZD\VDVKLUWRIIHDWKHUV,QRQH*HUPDQVWRU\DQREOHPDQKXQWLQJ
GHHUILQGVDPDLGHQEDWKLQJLQDFOHDUSRROLQWKHIRUHVW+HUXQVVWHDOWKLO\XSWRKHUDQGVHL]HVKHUQHFNODFHDWZKLFK
VKHORVHVWKHSRZHUWRIOHH7KH\DUHPDUULHGDQGVKHEHDUVVHYHQVRQVDWRQFHDOORIZKRPKDYHJROGFKDLQVDERXW
WKHLUQHFNVDQGDUHDEOHWRWUDQVIRUPWKHPVHOYHVLQWRVZDQVZKHQHYHUWKH\OLNH$)OHPLVKOHJHQGWHOOVRIWKUHH1L[LHV
RUZDWHUVSULWHVZKRFDPHRXWRIWKH0HXVHRQHDXWXPQHYHQLQJDQGKHOSHGWKHYLOODJHUVFHOHEUDWHWKHHQGRIWKH
YLQWDJH6XFKJUDFHIXOGDQFHUVKDGQHYHUEHHQVHHQLQ)ODQGHUVDQGWKH\FRXOGVLQJDVZHOODVWKH\FRXOGGDQFH$VWKH
QLJKWZDVZDUPRQHRIWKHPWRRNRIIKHUJORYHVDQGJDYHWKHPWRKHUSDUWQHUWRKROGIRUKHU:KHQWKHFORFNVWUXFN
WZHOYHWKHRWKHUWZRVWDUWHGRIILQKRWKDVWHDQGWKHQWKHUHZDVDKXHDQGFU\IRUJORYHV7KHODGZRXOGNHHSWKHPDV
ORYHWRNHQVDQGVRWKHSRRU1L[LHKDGWRJRKRPHZLWKRXWWKHPEXWVKHPXVWKDYHGLHGRQWKHZD\IRUQH[WPRUQLQJ
WKHZDWHUVRIWKH0HXVHZHUHEORRGUHGDQGWKRVHGDPVHOVQHYHUUHWXUQHG
>@7KHIHDWKHUGUHVVUHDSSHDUVLQWKH$UDELDQVWRU\RI+DVVVQRI(O%DVUDKZKRE\VWHDOLQJLWVHFXUHVSRVVHVVLRQRI
WKH-LQQL\D6HH/DQH¶V$UDELDQ1LJKWV9RO,,,S5DOVWRQ6RQJVRIWKH5XVVLDQ3HRSOHS
,QWKH)DUR,VODQGVLWLVEHOLHYHGWKDWVHDOVFDVWRIIWKHLUVNLQVHYHU\QLQWKQLJKWDVVXPHKXPDQIRUPVDQGVLQJDQG
GDQFHOLNHPHQDQGZRPHQXQWLOGD\EUHDNZKHQWKH\UHVXPHWKHLUVNLQVDQGWKHLUVHDOQDWXUHV2IFRXUVHDPDQRQFH
IRXQGDQGKLGRQHRIWKHVHVHDOVNLQVDQGVRJRWDPHUPDLGIRUDZLIHDQGRIFRXUVHVKHUHFRYHUHGWKHVNLQDQG
HVFDSHG>@2QWKHFRDVWVRI,UHODQGLWLVVXSSRVHGWREHTXLWHDQRUGLQDU\WKLQJIRU\RXQJVHDIDLULHVWRJHWKXPDQ
KXVEDQGVLQWKLVZD\WKHEUD]HQWKLQJVHYHQFRPHWRVKRUHRQSXUSRVHDQGOHDYHWKHLUUHGFDSVO\LQJDURXQGIRU\RXQJ
PHQWRSLFNXSEXWLWEHKRRYHVWKHKXVEDQGWRNHHSDVWULFWZDWFKRYHUWKHUHGFDSLIKHZRXOGQRWVHHKLVFKLOGUHQOHIW
PRWKHUOHVV
>@7KRUSH1RUWKHUQ0\WKRORJ\,,,.HQQHG\)LFWLRQVRIWKH,ULVK&HOWVS
7KLVPHUPDLG¶VFDSKDVFRQWULEXWHGLWVTXRWDWRWKH
VXSHUVWLWLRQVRIZLWFKFUDIW$Q,ULVKVWRU\WHOOVKRZ5HG
-DPHVZDVDURXVHGIURPVOHHSRQHQLJKWE\QRLVHVLQWKH
NLWFKHQ*RLQJGRZQWRWKHGRRUKHVDZDORWRIROGZRPHQ
GULQNLQJSXQFKDURXQGWKHILUHSODFHDQGODXJKLQJDQGMRNLQJ
ZLWKKLVKRXVHNHHSHU:KHQWKHSXQFKERZOZDVHPSW\WKH\DOO
SXWRQUHGFDSVDQGVLQJLQJ
³%\\DUURZDQGUXH$QGP\UHGFDSWRR
+LHPHRYHUWR(QJODQG´
WKH\IOHZXSFKLPQH\6R-LPP\EXUVWLQWRWKHURRPDQGVHL]HGWKHKRXVHNHHSHU¶VFDSDQGZHQWDORQJZLWKWKHP
7KH\IOHZDFURVVWKHVHDWRDFDVWOHLQ(QJODQGSDVVHGWKURXJKWKHNH\KROHVIURPURRPWRURRPDQGLQWRWKHFHOODU
ZKHUHWKH\KDGDIDPRXVFDURXVH8QOXFNLO\-LPP\EHLQJXQXVHGWRVXFKJRRGFKHHUJRWGUXQNDQGIRUJRWWRSXWRQ
KLVFDSZKHQWKHRWKHUVGLG6RQH[WPRUQLQJWKHORUG¶VEXWOHUIRXQGKLPGHDGGUXQNRQWKHFHOODUIORRUVXUURXQGHGE\
HPSW\FDVNV+HZDVVHQWHQFHGWREHKXQJZLWKRXWDQ\WULDOZRUWKVSHDNLQJRIEXWDVKHZDVFDUWHGWRWKHJDOORZVDQ
ROGZRPDQFULHGRXW³$FK-LPP\DODQQD:RXOG\RXEHDIWKHUG\LQ¶LQDVWUDQJHODQGZLWKRXW\RXUUHGELUUHGK"´7KH
ORUGPDGHQRREMHFWLRQVDQGVRWKHUHGFDSZDVEURXJKWDQGSXWRQKLP$FFRUGLQJO\ZKHQ-LPP\KDGJRWWRWKH
JDOORZVDQGZDVPDNLQJKLVODVWVSHHFKIRUWKHHGLILFDWLRQRIWKHVSHFWDWRUVKHXQH[SHFWHGO\DQGVRPHZKDWLUUHOHYDQWO\
H[FODLPHG³%\\DUURZDQGUXH´HWFDQGZDVRIIOLNHDURFNHWVKRRWLQJWKURXJKWKHEOXHDLUHQURXWHIRUROG
,UHODQG>@
>@.HQQHG\)LFWLRQVRIWKH,ULVK&HOWVS
,QDQRWKHU,ULVKOHJHQGDQHQFKDQWHGDVVFRPHVLQWRWKHNLWFKHQRIDJUHDWKRXVHHYHU\QLJKWDQGZDVKHVWKHGLVKHVDQG
VFRXUVWKHWLQVVRWKDWWKHVHUYDQWVOHDGDQHDV\OLIHRILW$IWHUDZKLOHLQWKHLUH[XEHUDQWJUDWLWXGHWKH\RIIHUKLPDQ\
SUHVHQWIRUZKLFKKHPD\IHHOLQFOLQHGWRDVN+HGHVLUHVRQO\³DQRXOGFRDWWRNHHSWKHFKLOORIIRIKLPWKHVHFRXOG
QLJKWV´EXWDVVRRQDVKHJHWVLQWRWKHFRDWKHUHVXPHVKLVKXPDQIRUPDQGELGVWKHPJRRGE\DQGWKHQFHIRUWKWKH\
PD\ZDVKWKHLURZQGLVKHVDQGVFRXUWKHLURZQWLQVIRUDOOKLP
%XWZHDUHGLYHUJLQJIURPWKHVXEMHFWRIVZDQPDLGHQVDQGDUHLQGDQJHURIORVLQJRXUVHOYHVLQWKDWODE\ULQWKRI
SRSXODUIDQFLHVZKLFKLVPRUHLQWULFDWHWKDQDQ\WKDW'DLGDORVHYHUSODQQHG7KHVLJQLILFDQFHRIDOOWKHVHVHDOVNLQVDQG
IHDWKHUGUHVVHVDQGPHUPDLGFDSVDQGZHUHZROIJLUGOHVPD\EHVWEHVRXJKWLQWKHHW\PRORJ\RIZRUGVOLNHWKH*HUPDQ
OHLFKQDPLQZKLFKWKHERG\LVGHVFULEHGDVDJDUPHQWRIIOHVKIRUWKHVRXO>@,QWKHQDLYHSKLORVRSK\RISULPLWLYH
WKLQNHUVWKHVRXOLQSDVVLQJIURPRQHYLVLEOHVKDSHWRDQRWKHUKDGRQO\WRSXWRQWKHRXWZDUGLQWHJXPHQWRIWKH
FUHDWXUHLQZKLFKLWZLVKHGWRLQFDUQDWHLWVHOI:LWKUHVSHFWWRWKHPRGHRIPHWDPRUSKRVLVWKHUHLVOLWWOHGLIIHUHQFH
EHWZHHQWKHZHUHZROIDQGWKHVZDQPDLGHQDQGWKHVLPLODULW\LVQROHVVVWULNLQJEHWZHHQWKHJHQHVLVRIWKHWZR
FRQFHSWLRQV7KHRULJLQDOZHUHZROILVWKHQLJKWZLQGUHJDUGHGQRZDVDPDQOLNHGHLW\DQGQRZDVDKRZOLQJOXSLQH
ILHQGDQGWKHRULJLQDOVZDQPDLGHQLVWKHOLJKWIOHHF\FORXGUHJDUGHGHLWKHUDVDZRPDQOLNHJRGGHVVRUDVDELUG
VZLPPLQJLQWKHVN\VHD7KHRQHFRQFHSWLRQKDVEHHQSURGXFWLYHRIOLWWOHHOVHEXWKRUURUVWKHRWKHUKDVJLYHQULVHWRD
JUHDWYDULHW\RIIDQFLIXOFUHDWLRQVIURPWKHWUHDFKHURXVPHUPDLGDQGWKHILHQGLVKQLJKWPDUHWRWKHJHQWOH8QGLQHWKH
FKDUPLQJ1DXVLNDDDQGWKHVWDWHO\0XVHRIFODVVLFDQWLTXLW\
>@%DULQJ*RXOG%RRNRI:HUHZROYHVS
:HKDYHVHHQWKDWWKHRULJLQDOZHUHZROIKRZOLQJLQWKHZLQWU\EODVWLVDNLQGRISV\FKRSRPSRUOHDGHURIGHSDUWHG
VRXOVKHLVWKHZLOGDQFHVWRURIWKHGHDWKGRJZKRVHYRLFHXQGHUWKHZLQGRZRIDVLFNFKDPEHULVHYHQQRZDVRXQG
RILOORPHQ7KHVZDQPDLGHQKDVDOVREHHQVXSSRVHGWRVXPPRQWKHG\LQJWRKHUKRPHLQWKH3KDLDNLDQODQG7KH
9DON\ULHVZLWKWKHLUVKLUWVRIVZDQSOXPDJHZKRKRYHUHGRYHU6FDQGLQDYLDQEDWWOHILHOGVWRUHFHLYHWKHVRXOVRI
IDOOLQJKHURHVZHUHLGHQWLFDOZLWKWKH+LQGX$SVDUDVDQGWKH+RXULVRIWKH0XVVXOPDQEHORQJWRWKHVDPHIDPLO\
(YHQIRUWKHDQJHOVZRPHQZLWKODUJHZLQJVZKRDUHVHHQLQSRSXODUSLFWXUHVEHDULQJPRUWDOVRQKLJKWRZDUGV
KHDYHQZHFDQKDUGO\FODLPDGLIIHUHQWNLQVKLS0HOXVLQDZKHQVKHOHDYHVWKHFDVWOHRI/XVLJQDQEHFRPHVD
%DQVKHHDQGLWKDVEHHQDFRPPRQVXSHUVWLWLRQDPRQJVDLORUVWKDWWKHDSSHDUDQFHRIDPHUPDLGZLWKKHUFRPEDQG
ORRNLQJJODVVIRUHWRNHQVVKLSZUHFNZLWKWKHORVVRIDOORQERDUG
2FWREHU

,9/,*+7$1''$5.1(66
:+(10DLWODQGEODVSKHPRXVO\DVVHUWHGWKDW*RGZDVEXW³D%RJLHRIWKHQXUVHU\´KHXQZLWWLQJO\PDGHDUHPDUNDV
VXJJHVWLYHLQSRLQWRISKLORORJ\DVLWZDVFUXGHDQGUHSXOVLYHLQLWVDWKHLVP:KHQH[DPLQHGZLWKWKHOHQVHVRI
OLQJXLVWLFVFLHQFHWKH³%RJLH´RU³%XJDERR´RU³%XJEHDU´RIQXUVHU\ORUHWXUQVRXWWREHLGHQWLFDOQRWRQO\ZLWKWKH
IDLU\³3XFN´ZKRP6KDNHVSHDUHKDVLPPRUWDOL]HGEXWDOVRZLWKWKH6ODYRQLF³%RJ´DQGWKH³%DJD´RIWKH&XQHLIRUP
,QVFULSWLRQVERWKRIZKLFKDUHQDPHVIRUWKH6XSUHPH%HLQJ,IZHSURFHHGIXUWKHUDQGLQTXLUHDIWHUWKHDQFHVWUDOIRUP
RIWKHVHHSLWKHWVVRVWUDQJHO\LQFRQJUXRXVLQWKHLUVLJQLILFDWLRQVZHVKDOOILQGLWLQWKH2OG$U\DQ³%KDJD´ZKLFK
UHDSSHDUVXQFKDQJHGLQWKH6DQVNULWRIWKH9HGDVDQGKDVOHIWDPHPHQWRRILWVHOILQWKHVXUQDPHRIWKH3KU\JLDQ=HXV
³%DJDLRV´,WVHHPVRULJLQDOO\WRKDYHGHQRWHGHLWKHUWKHXQFORXGHGVXQRUWKHVN\RIQRRQGD\LOOXPLQHGE\WKHVRODU
UD\V,Q6D\DQD¶VFRPPHQWDU\RQWKH5LJ9HGD%KDJDLVHQXPHUDWHGDPRQJWKHVHYHQ RUHLJKW VRQVRI$GLWLWKH
ERXQGOHVV2ULHQWDQGKHLVHOVHZKHUHGHVFULEHGDVWKHORUGRIOLIHWKHJLYHURIEUHDGDQGWKHEULQJHURIKDSSLQHVV>@
>@0XLU¶V6DQVNULW7H[WV9RO,9S0XOOHU5LJ9HGD6DQKLWD9RO,SS)LFN:RHUWHUEXFKGHU
,QGRJHUPDQLVFKHQ*UXQGVSUDFKHSVY%KDJD
7KXVWKHVDPHQDPHZKLFKWRWKH9HGLFSRHWWRWKH3HUVLDQRIWKHWLPHRI;HU[HVDQGWRWKHPRGHUQ5XVVLDQVXJJHVWV
WKHVXSUHPHPDMHVW\RIGHLW\LVLQ(QJOLVKDVVRFLDWHGZLWKDQXJO\DQGOXGLFURXVILHQGFORVHO\DNLQWRWKDWJURWHVTXH
1RUWKHUQ'HYLORIZKRP6RXWKH\ZDVXQDEOHWRWKLQNZLWKRXWODXJKLQJ6XFKLVWKHLURQ\RIIDWHWRZDUGDGHSRVHG
GHLW\7KH*HUPDQQDPHIRULGRO²$EJRWWWKDWLV³H[JRG´RU³GHWKURQHGJRG´²VXPVXSLQDVLQJOHHW\PRORJ\WKH
KLVWRU\RIWKHKDYRFZURXJKWE\PRQRWKHLVPDPRQJWKHDQFLHQWV\PEROVRIGHLW\,QWKHKRVSLWDEOH3DQWKHRQRIWKH
*UHHNVDQG5RPDQVDQLFKHZDVDOZD\VLQUHDGLQHVVIRUHYHU\QHZGLYLQLW\ZKRFRXOGSURGXFHUHVSHFWDEOHFUHGHQWLDOV
EXWWKHWULXPSKRIPRQRWKHLVPFRQYHUWHGWKHVWDWHO\PDQVLRQLQWRD3DQGHPRQLXPSHRSOHGZLWKILHQGV7RWKH
PRQRWKHLVWDQ³H[JRG´ZDVVLPSO\DGHYLOLVKGHFHLYHURIPDQNLQGZKRPWKHWUXH*RGKDGVXFFHHGHGLQYDQTXLVKLQJ
DQGWKXVWKHZRUGGHPRQZKLFKWRWKHDQFLHQWPHDQWDGLYLQHRUVHPLGLYLQHEHLQJFDPHWREHDSSOLHGWRILHQGV
H[FOXVLYHO\7KXVWKH7HXWRQLFUDFHVZKRSUHVHUYHGWKHQDPHRIWKHLUKLJKHVWGLYLQLW\2GLQRULJLQDOO\*XRGDQE\
ZKLFKWRGHVLJQDWHWKH*RGRIWKH&KULVWLDQ>@ZHUHXQDEOHWRUHJDUGWKH%RJRIDQFLHQWWUDGLWLRQDVDQ\WKLQJEXWDQ
³H[JRG´RUYDQTXLVKHGGHPRQ
>@,QWKH1RUWK$PHULFDQ5HYLHZ2FWREHUS,KDYHFROOHFWHGDQXPEHURIIDFWVZKLFKVHHPWRPHWR
SURYHEH\RQGTXHVWLRQWKDWWKHQDPH*RGLVGHULYHGIURP*XRGDQWKHRULJLQDOIRUPRI2GLQWKHVXSUHPHGHLW\RIRXU
3DJDQIRUHIDWKHUV7KHFDVHLVH[DFWO\SDUDOOHOWRWKDWRIWKH)UHQFK'LHXZKLFKLVGHVFHQGHGIURPWKH'HXVRIWKH
SDJDQ5RPDQ
7KHPRVWVWULNLQJLOOXVWUDWLRQRIWKLVSURFHVVLVWREHIRXQGLQWKHZRUGGHYLOLWVHOI7RDUHDGHUXQIDPLOLDUZLWKWKH
HQGOHVVWULFNVZKLFKODQJXDJHGHOLJKWVLQSOD\LQJLWPD\VHHPVKRFNLQJWREHWROGWKDWWKH*\SVLHVXVHWKHZRUGGHYLO
DVWKHQDPHRI*RG>@7KLVKRZHYHULVQRWEHFDXVHWKHVHSHRSOHKDYHPDGHWKHDUFKILHQGDQREMHFWRIZRUVKLSEXW
EHFDXVHWKH*\SV\ODQJXDJHGHVFHQGLQJGLUHFWO\IURPWKH6DQVNULWKDVUHWDLQHGLQLWVSULPLWLYHH[DOWHGVHQVHDZRUG
ZKLFKWKH(QJOLVKODQJXDJHKDVUHFHLYHGRQO\LQLWVGHEDVHGDQGSHUYHUWHGVHQVH7KH7HXWRQLFZRUGVGHYLOWHXIHO
GLXYDOGMRIXOOGMHYIXOPD\DOOEHWUDFHGEDFNWRWKH=HQGGHY>@DQDPHLQZKLFKLVLPSOLFLWO\FRQWDLQHGWKHUHFRUG
RIWKHROGHVWPRQRWKHLVWLFUHYROXWLRQNQRZQWRKLVWRU\7KHLQIOXHQFHRIWKHVRFDOOHG=RURDVWULDQUHIRUPXSRQWKH
ORQJVXEVHTXHQWGHYHORSPHQWRI&KULVWLDQLW\ZLOOUHFHLYHIXUWKHUQRWLFHLQWKHFRXUVHRIWKLVSDSHUIRUWKHSUHVHQWLWLV
HQRXJKWRNQRZWKDWLWIXUQLVKHGIRUDOO&KULVWHQGRPWKHQDPHE\ZKLFKLWGHVLJQDWHVWKHDXWKRURIHYLO7RWKH3DUVHH
IROORZHURI=DUDWKXVWUDWKHQDPHRIWKH'HYLOKDVYHU\QHDUO\WKHVDPHVLJQLILFDWLRQDVWRWKH&KULVWLDQ\HWDV*ULPP
KDVVKRZQLWLVQRWKLQJHOVHWKDQDFRUUXSWLRQRIGHYDWKH6DQVNULWQDPHIRU*RG:KHQ=DUDWKXVWUDRYHUWKUHZWKH
SULPHYDO$U\DQQDWXUHZRUVKLSLQ%DFWULDWKLVQDPHPHWWKHVDPHHYLOIDWHZKLFKLQHDUO\&KULVWLDQWLPHVRYHUWRRNWKH
ZRUGGHPRQDQGIURPDV\PERORIUHYHUHQFHEHFDPHKHQFHIRUWKDV\PERORIGHWHVWDWLRQ>@%XWWKURXJKRXWWKHUHVW
RIWKH$U\DQZRUOGLWDFKLHYHGDQREOHUFDUHHUSURGXFLQJWKH*UHHNWKHRVWKH/LWKXDQLDQGLHZDVWKH/DWLQGHXVDQG
KHQFHWKHPRGHUQ)UHQFK'LHXDOOPHDQLQJ*RG
>@6HH3RWW'LH=LJHXQHU,,.XKQ%HLWUDJH,<HWLQWKHZRUVKLSRIGHZHOE\WKH*\SVLHVLVWREHIRXQG
WKHHOHPHQWRIGLDEROLVPLQYDULDEO\SUHVHQWLQEDUEDULFZRUVKLS³'HZHOWKHJUHDWJRGLQKHDYHQ GHZDGHXV LV
UDWKHUIHDUHGWKDQORYHGE\WKHVHZHDWKHUEHDWHQRXWFDVWVIRUKHKDUPVWKHPRQWKHLUZDQGHULQJVZLWKKLVWKXQGHUDQG
OLJKWQLQJKLVVQRZDQGUDLQDQGKLVVWDUVLQWHUIHUHZLWKWKHLUGDUNGRLQJV7KHUHIRUHWKH\FXUVHKLPIRXOO\ZKHQ
PLVIRUWXQHIDOOVRQWKHPDQGZKHQDFKLOGGLHVWKH\VD\WKDW'HZHOKDVHDWHQLW´7\ORU3ULPLWLYH&XOWXUH9RO,,S

>@6HH*ULPP'HXWVFKH0\WKRORJLH
>@7KH%XGGKLVWLFDVZHOODVWKH=DUDWKXVWULDQUHIRUPDWLRQGHJUDGHGWKH9HGLFJRGVLQWRGHPRQV³,Q%XGGKLVPZH
ILQGWKHVHDQFLHQWGHYDV,QGUDDQGWKHUHVWFDUULHGDERXWDWVKRZVDVVHUYDQWVRI%XGGKDDVJREOLQVRUIDEXORXV
KHURHV´0D[0XOOHU&KLSV,7KLVLVOLNHWKH&KULVWLDQFKDQJHRI2GLQLQWRDQRJUHDQGRI7KRULQWRWKH'HYLO
,IZHWUDFHEDFNWKLVUHPDUNDEOHZRUGWRLWVSULPLWLYHVRXUFHLQWKDWRQFHORVWEXWQRZSDUWLDOO\UHFRYHUHGPRWKHU
WRQJXHIURPZKLFKDOORXU$U\DQODQJXDJHVDUHGHVFHQGHGZHILQGDURRWGLYRUG\XPHDQLQJ³WRVKLQH´)URPWKH
ILUVWPHQWLRQHGIRUPFRPHVGHYDZLWKLWVQXPHURXVSURJHQ\RIJRRGDQGHYLODSSHOODWLYHVIURPWKHODWWHULVGHULYHG
WKHQDPHRI'\DXVZLWKLWVEUHWKUHQ=HXVDQG-XSLWHU,Q6DQVNULWG\XDVDQRXQPHDQV³VN\´DQG³GD\´DQGWKHUH
DUHPDQ\SDVVDJHVLQWKH5LJ9HGDZKHUHWKHFKDUDFWHURIWKHJRG'\DXVDVWKHSHUVRQLILFDWLRQRIWKHVN\RUWKH
EULJKWQHVVRIWKHHWKHUHDOKHDYHQVLVXQPLVWDNDEO\DSSDUHQW7KLVNH\XQORFNVIRUXVRQHRIWKHVHFUHWVRI*UHHN
P\WKRORJ\6RORQJDVWKHUHZDVIRU=HXVQREHWWHUHW\PRORJ\WKDQWKDWZKLFKDVVLJQHGLWWRWKHURRW]HQ³WROLYH´>@
WKHUHZDVOLWWOHKRSHRIXQGHUVWDQGLQJWKHQDWXUHRI=HXV%XWZKHQZHOHDUQWKDW=HXVLVLGHQWLFDOZLWK'\DXVWKH
EULJKWVN\ZHDUHHQDEOHGWRXQGHUVWDQG+RUDFH¶VH[SUHVVLRQ³VXE-RYHIULJLGR´DQGWKHSUD\HURIWKH$WKHQLDQV
³5DLQUDLQGHDU=HXVRQWKHODQGRIWKH$WKHQLDQVDQGRQWKHILHOGV´>@6XFKH[SUHVVLRQVDVWKHVHZHUHUHWDLQHG
E\WKH*UHHNVDQG5RPDQVORQJDIWHUWKH\KDGIRUJRWWHQWKDWWKHLUVXSUHPHGHLW\ZDVRQFHWKHVN\<HWHYHQWKH
%UDKPDQIURPZKRVHPLQGWKHSK\VLFDOVLJQLILFDQFHRIWKHJRG¶VQDPHQHYHUZKROO\GLVDSSHDUHGFRXOGVSHDNRIKLP
DV)DWKHU'\DXVWKHJUHDW3LWULRUDQFHVWRURIJRGVDQGPHQDQGLQWKLVUHYHUHQWLDOQDPH'\DXVSLWDUPD\EHVHHQWKH
H[DFWHTXLYDOHQWRIWKH5RPDQ¶V-XSLWHURU-RYHWKH)DWKHU7KHVDPHURRWFDQEHIROORZHGLQWR2OG*HUPDQZKHUH
=LRLVWKHJRGRIGD\DQGLQWR$QJOR6D[RQZKHUH7LZVGDHJRUWKHGD\RI=HXVLVWKHDQFHVWUDOIRUPRI7XHVGD\
>@=HXV²'LD²=KQD²GLRQ3ODWR.UDW\ORVS$ZLWK6WDOOEDXP¶VQRWH6HHDOVR3URNORV&RPPDG
7LPDHXP,,S6FKQHLGHUDQGFRPSDUH3VHXGR$ULVWRWOH'H0XQGRSDZKRDGRSWVWKHHW\PRORJ\
6HHDOVR'LRJHQHV/DHUWLXV9,,
>@0DUFXV$XUHOLXVY+RP,OLDG[LLFI
3HWURQLXV$UELWHU6DW[OLY
7KXVZHDJDLQUHDFKWKHVDPHUHVXOWVZKLFKZHUHREWDLQHGIURPWKHH[DPLQDWLRQRIWKHQDPH%KDJD7KHVHYDULRXV
QDPHVIRUWKHVXSUHPH$U\DQJRGZKLFKZLWKRXWWKHKHOSDIIRUGHGE\WKH9HGDVFRXOGQHYHUKDYHEHHQLQWHUSUHWHGDUH
VHHQWRKDYHEHHQRULJLQDOO\DSSOLHGWRWKHVXQLOOXPLQHGILUPDPHQW&RXQWOHVVRWKHUH[DPSOHVZKHQVLPLODUO\
DQDO\]HGVKRZWKDWWKHHDUOLHVW$U\DQFRQFHSWLRQRID'LYLQH3RZHUQRXULVKLQJPDQDQGVXVWDLQLQJWKHXQLYHUVHZDV
VXJJHVWHGE\WKHOLJKWRIWKHPLJKW\6XQZKRDVPRGHUQVFLHQFHKDVVKRZQLVWKHRULJLQDWRURIDOOOLIHDQGPRWLRQ
XSRQWKHJOREHDQGZKRPWKHDQFLHQWVGHOLJKWHGWREHOLHYHWKHVRXUFHQRWRQO\RI³WKHJROGHQOLJKW´>@EXWRI
HYHU\WKLQJWKDWLVEULJKWMR\JLYLQJDQGSXUH1HYHUWKHOHVVLQDFFHSWLQJWKLVFRQFOXVLRQDVZHOOHVWDEOLVKHGE\
OLQJXLVWLFVFLHQFHZHPXVWEHRQRXUJXDUGDJDLQVWDQHUURULQWRZKLFKZULWHUVRQP\WKRORJ\DUHYHU\OLDEOHWRIDOO
1HLWKHUVN\QRUVXQQRUOLJKWRIGD\QHLWKHU=HXVQRU$SROORQHLWKHU'\DXVQRU,QGUDZDVHYHUZRUVKLSSHGE\WKH
DQFLHQW$U\DQLQDQ\WKLQJOLNHDPRQRWKHLVWLFVHQVH7RLQWHUSUHW=HXVRU-XSLWHUDVRULJLQDOO\WKHVXSUHPH$U\DQJRG
DQGWRUHJDUGFODVVLFSDJDQLVPDVRQHRIWKHGHJUDGHGUHPQDQWVRIDSULPHYDOPRQRWKHLVPLVWRVLQDJDLQVWWKHFDQRQV
RIDVRXQGLQGXFWLYHSKLORVRSK\3KLORORJ\LWVHOIWHDFKHVXVWKDWWKLVFRXOGQRWKDYHEHHQVR)DWKHU'\DXVZDV
RULJLQDOO\WKHEULJKWVN\DQGQRWKLQJPRUH$OWKRXJKKLVQDPHEHFDPHJHQHUDOL]HGLQWKHFODVVLFODQJXDJHVLQWRGHXV
RU*RGLWLVTXLWHFHUWDLQWKDWLQHDUO\GD\VEHIRUHWKH$U\DQVHSDUDWLRQLWKDGDFTXLUHGQRVXFKH[DOWHGVLJQLILFDQFH,W
ZDVRQO\LQ*UHHFHDQG5RPH²RUZHPD\VD\DPRQJWKHVWLOOXQLWHG,WDOR+HOOHQLFWULEHV²WKDW-XSLWHU=HXVDWWDLQHG
DSUHHPLQHQFHRYHUDOORWKHUGHLWLHV7KHSHRSOHRI,UDQTXLWHUHMHFWHGKLPWKH7HXWRQVSUHIHUUHG7KRUDQG2GLQDQG
LQ,QGLDKHZDVVXSHUVHGHGILUVWE\,QGUDDIWHUZDUGVE\%UDKPDDQG9LVKQX:HQHHGQRWWKHUHIRUHORRNIRUDVLQJOH
VXSUHPHGLYLQLW\DPRQJWKHROG$U\DQVQRUPD\ZHH[SHFWWRILQGDQ\VHQVHDFWLYHRUGRUPDQWRIPRQRWKHLVPLQWKH
SULPLWLYHLQWHOOLJHQFHRIXQFLYLOL]HGPHQ>@7KHZKROHIDEULFRIFRPSDUDWLYHP\WKRORJ\DVDWSUHVHQWFRQVWLWXWHG
DQGDVGHVFULEHGDERYHLQWKHILUVWRIWKHVHSDSHUVUHVWVXSRQWKHSRVWXODWHWKDWWKHHDUOLHVWUHOLJLRQZDVSXUHIHWLFKLVP
>@³,O6ROGHOODXUHDOXFHHWHUQRIRUWH´7DVVR*HUXVDOHPPH;9HI'DQWH3DUDGLVR;
>@7KH$U\DQVZHUHKRZHYHUGRXEWOHVVEHWWHURIIWKDQWKHWULEHVRI1RUWK$PHULFD³,QQR,QGLDQODQJXDJHFRXOG
WKHHDUO\PLVVLRQDULHVILQGDZRUGWRH[SUHVVWKHLGHDRI*RG0DQLWRXDQG2NLPHDQWDQ\WKLQJHQGRZHGZLWK
VXSHUQDWXUDOSRZHUVIURPDVQDNHVNLQRUDJUHDV\,QGLDQFRQMXUHUXSWR0DQDER]KRDQG-RXVNHKD7KHSULHVWVZHUH
IRUFHGWRXVHDFLUFXPORFXWLRQµWKHJUHDWFKLHIRIPHQ¶RUµKHZKROLYHVLQWKHVN\¶³3DUNPDQ-HVXLWVLQ1RUWK
$PHULFDSO[[L[³7KH$OJRQTXLQVXVHGQRRDWKVIRUWKHLUODQJXDJHVXSSOLHGQRQHGRXEWOHVVEHFDXVHWKHLUP\WKRORJ\
KDGQREHLQJVVXIILFLHQWO\GLVWLQFWWRVZHDUE\´,ELGS
,QWKHXQV\VWHPDWLFQDWXUHZRUVKLSRIWKHROG$U\DQVWKHJRGVDUHSUHVHQWHGWRXVRQO\DVYDJXHSRZHUVZLWKWKHLU
QDWXUHDQGDWWULEXWHVGLPO\GHILQHGDQGWKHLUUHODWLRQVWRHDFKRWKHUIOXFWXDWLQJDQGRIWHQFRQWUDGLFWRU\7KHUHLVQR
WKHRJRQ\QRUHJXODUVXERUGLQDWLRQRIRQHGHLW\WRDQRWKHU7KHVDPHSDLURIGLYLQLWLHVDSSHDUQRZDVIDWKHUDQG
GDXJKWHUQRZDVEURWKHUDQGVLVWHUQRZDVKXVEDQGDQGZLIHDQGDJDLQWKH\TXLWHORVHWKHLUSHUVRQDOLW\DQGDUH
UHSUHVHQWHGDVPHUHQDWXUDOSKHQRPHQD$V0XOOHUREVHUYHV³7KHSRHWVRIWKH9HGDLQGXOJHGIUHHO\LQWKHRJRQLF
VSHFXODWLRQVZLWKRXWEHLQJIULJKWHQHGE\DQ\FRQWUDGLFWLRQV7KH\NQHZRI,QGUDDVWKHJUHDWHVWRIJRGVWKH\NQHZRI
$JQLDVWKHJRGRIJRGVWKH\NQHZRI9DUXQDDVWKHUXOHURIDOOEXWWKH\ZHUHE\QRPHDQVVWDUWOHGDWWKHLGHDWKDW
WKHLU,QGUDKDGDPRWKHURUWKDWWKHLU$JQL>/DWLQLJQLV@ZDVERUQOLNHDEDEHIURPWKHIULFWLRQRIWZRILUHVWLFNVRUWKDW
9DUXQDDQGKLVEURWKHU0LWUDZHUHQXUVHGLQWKHODSRI$GLWL´>@7KXVZHKDYHVHHQ%KDJDWKHGD\OLJKWUHSUHVHQWHG
DVWKHRIIVSULQJRI$GLWLWKHERXQGOHVV2ULHQWEXWKHKDGVHYHUDOEURWKHUVDQGDPRQJWKHPZHUH0LWUDWKHVXQ
9DUXQDWKHRYHUDUFKLQJILUPDPHQWDQG9LYDVYDWWKHYLYLI\LQJVXQ0DQLIHVWO\ZHKDYHKHUHEXWVRPDQ\GLIIHUHQW
QDPHVIRUZKDWLVDWERWWRPRQHDQGWKHVDPHFRQFHSWLRQ7KHFRPPRQHOHPHQWZKLFKLQ'\DXVDQG9DUXQDLQ%KDJD
DQG,QGUDZDVPDGHDQREMHFWRIZRUVKLSLVWKHEULJKWQHVVZDUPWKDQGOLIHRIGD\DVFRQWUDVWHGZLWKWKHGDUNQHVV
FROGDQGVHHPLQJGHDWKRIWKHQLJKWWLPH$QGWKLVFRPPRQHOHPHQWZDVSHUVRQLILHGLQDVPDQ\GLIIHUHQWZD\VDVWKH
XQUHVWUDLQHGIDQF\RIWKHDQFLHQWZRUVKLSSHUVDZILWWRGHYLVH>@
>@0XOOHU5LJ9HGD6DQKLWD,
>@&RPSDUHWKHUHPDUNVRI%UHDO+HUFXOHHW&DFXVS
7KXVZHEHJLQWRVHHZK\DIHZVLPSOHREMHFWVOLNHWKHVXQWKHVN\WKHGDZQDQGWKHQLJKWVKRXOGEHUHSUHVHQWHGLQ
P\WKRORJ\E\VXFKDKRVWRIJRGVJRGGHVVHVDQGKHURHV)RUDWRQHWLPHWKH6XQLVUHSUHVHQWHGDVWKHFRQTXHURURI
K\GUDVDQGGUDJRQVZKRKLGHDZD\IURPPHQWKHJROGHQWUHDVXUHVRIOLJKWDQGZDUPWKDQGDWDQRWKHUWLPHKHLV
UHSUHVHQWHGDVDZHDU\YR\DJHUWUDYHUVLQJWKHVN\VHDDPLGPDQ\SHULOVZLWKWKHVWHDGIDVWSXUSRVHRIUHWXUQLQJWRKLV
ZHVWHUQKRPHDQGKLVWZLOLJKWEULGHKHQFHWKHGLIIHUHQWFRQFHSWLRQVRI+HUDNOHV%HOOHURSKRQDQG2G\VVHXV1RZKH
LVUHSUHVHQWHGDVWKHVRQRIWKH'DZQDQGDJDLQZLWKHTXDOSURSULHW\DVWKHVRQRIWKH1LJKWDQGWKHILFNOHORYHURI
WKH'DZQKHQFHZHKDYHRQWKHRQHKDQGVWRULHVRIDYLUJLQPRWKHUZKRGLHVLQJLYLQJELUWKWRDKHURDQGRQWKH
RWKHUKDQGVWRULHVRIDEHDXWLIXOPDLGHQZKRLVIRUVDNHQDQGSHUKDSVFUXHOO\VODLQE\KHUWUHDFKHURXVORYHU,QGHHGWKH
6XQ¶VDGYHQWXUHVZLWKVRPDQ\GDZQPDLGHQVKDYHJLYHQKLPTXLWHDEDGFKDUDFWHUDQGWKHOHJHQGVDUHQXPHURXVLQ
ZKLFKKHDSSHDUVDVWKHSURWRW\SHRI'RQ-XDQ<HWDJDLQKLVVHSDUDWLRQIURPWKHEULGHRIKLV\RXWKLVGHVFULEHGDVGXH
WRQRIDXOWRIKLVRZQEXWWRDUHVLVWOHVVGHFUHHRIIDWHZKLFKKXUULHVKLPDZD\DV$LQHLDVZDVFRPSHOOHGWRDEDQGRQ
'LGR2UDFFRUGLQJWRDWKLUGDQGHTXDOO\SODXVLEOHQRWLRQKHLVDKHURRIDVFHWLFYLUWXHVDQGWKHGDZQPDLGHQLVD
ZLFNHGHQFKDQWUHVVGDXJKWHURIWKHVHQVXDO$SKURGLWHZKRYDLQO\HQGHDYRXUVWRVHGXFHKLP,QWKHVWRU\RI2G\VVHXV
WKHVHYDULRXVFRQFHSWLRQVDUHEOHQGHGWRJHWKHU:KHQHQWLFHGE\DUWIXOZRPHQ>@KH\LHOGVIRUDZKLOHWRWKH
WHPSWDWLRQEXWE\DQGE\KLVORQJLQJWRVHH3HQHORSHWDNHVKLPKRPHZDUGDOEHLWZLWKDUHFRUGZKLFK3HQHORSHPLJKW
QRWDOWRJHWKHUKDYHOLNHG$JDLQWKRXJKWKH6XQ³DOZD\VURDPLQJZLWKDKXQJU\KHDUW´KDVVHHQPDQ\FLWLHVDQG
FXVWRPVRIVWUDQJHPHQKHLVQHYHUWKHOHVVFRQILQHGWRDVLQJOHSDWKDFLUFXPVWDQFHZKLFKVHHPVWRKDYHRFFDVLRQHG
PXFKVSHFXODWLRQLQWKHSULPHYDOPLQG*DUFLODVRGHOD9HJDUHODWHVRIDFHUWDLQ3HUXYLDQ,QFDZKRVHHPVWRKDYH
EHHQDQ³LQILGHO´ZLWKUHIHUHQFHWRWKHRUWKRGR[P\WKRORJ\RIKLVGD\WKDWKHWKRXJKWWKH6XQZDVQRWVXFKDPLJKW\
JRGDIWHUDOOIRULIKHZHUHKHZRXOGZDQGHUDERXWWKHKHDYHQVDWUDQGRPLQVWHDGRIJRLQJIRUHYHUOLNHDKRUVHLQD
WUHDGPLOODORQJWKHVDPHFRXUVH7KH$PHULFDQ,QGLDQVH[SODLQHGWKLVFLUFXPVWDQFHE\P\WKVZKLFKWROGKRZWKH6XQ
ZDVRQFHFDXJKWDQGWLHGZLWKDFKDLQZKLFKZRXOGRQO\OHWKLPVZLQJDOLWWOHZD\WRRQHVLGHRUWKHRWKHU7KHDQFLHQW
$U\DQGHYHORSHGWKHQREOHUP\WKRIWKHODERXUVRI+HUDNOHVSHUIRUPHGLQREHGLHQFHWRWKHELGGLQJRI(XU\VWKHXV
$JDLQWKH6XQPXVWQHHGVGHVWUR\LWVSDUHQWVWKH1LJKWDQGWKH'DZQDQGDFFRUGLQJO\KLVSDUHQWVIRUHZDUQHGE\
SURSKHF\H[SRVHKLPLQLQIDQF\RURUGHUKLPWREHSXWWRGHDWKEXWKLVWUDJLFGHVWLQ\QHYHUIDLOVWREHDFFRPSOLVKHG
WRWKHOHWWHU$QGDJDLQWKH6XQZKRHQJDJHVLQTXDUUHOVQRWKLVRZQLVVRPHWLPHVUHSUHVHQWHGDVUHWLULQJPRRGLO\
IURPWKHVLJKWRIPHQOLNH$FKLOOHXVDQG0HOHDJURVKHLVVKRUWOLYHGDQGLOOIDWHGERUQWRGRPXFKJRRGDQGWREH
UHSDLGZLWKLQJUDWLWXGHKLVOLIHGHSHQGVRQWKHGXUDWLRQRIDEXUQLQJEUDQGDQGZKHQWKDWLVH[WLQJXLVKHGKHPXVWGLH
>@,WVKRXOGEHERUQHLQPLQGKRZHYHUWKDWRQHRIWKHZRPHQZKRWHPSW2G\VVHXVLVQRWDGDZQPDLGHQEXWD
JRGGHVVRIGDUNQHVV.DO\SVRDQVZHUVWR9HQXV8UVXODLQWKHP\WKRI7DQQKDXVHU.LUNHRQWKHRWKHUKDQGVHHPVWR
EHDGDZQPDLGHQOLNH0HGHLDZKRPVKHUHVHPEOHV,QKHUWKHZLVGRPRIWKHGDZQJRGGHVV$WKHQHWKHORIWLHVWRI
*UHHNGLYLQLWLHVEHFRPHVGHJUDGHGLQWRWKHDUWRIDQHQFKDQWUHVV6KHUHDSSHDUVLQWKH$UDELDQ1LJKWVDVWKHZLFNHG
4XHHQ/DEHZKRVHVRUFHU\QRQHRIKHUORYHUVFDQEDIIOHVDYH%HGHUNLQJRI3HUVLD
7KHP\WKRIWKHJUHDW7KHEDQKHUR2LGLSRXVZHOOLOOXVWUDWHVWKHPXOWLSOLFLW\RIFRQFHSWLRQVZKLFKFOXVWHUHGDERXWWKH
GDLO\FDUHHURIWKHVRODURUE+LVIDWKHU/DLRVKDGEHHQZDUQHGE\WKH'HOSKLFRUDFOHWKDWKHZDVLQGDQJHURIGHDWK
IURPKLVRZQVRQ7KHQHZO\ERUQ2LGLSRXVZDVWKHUHIRUHH[SRVHGRQWKHKLOOVLGHEXWOLNH5RPXOXVDQG5HPXVDQG
DOOLQIDQWVVLPLODUO\VLWXDWHGLQOHJHQGZDVGXO\UHVFXHG+HZDVWDNHQWR&RULQWKZKHUHKHJUHZXSWRPDQKRRG
-RXUQH\LQJRQFHWR7KHEHVKHJRWLQWRDTXDUUHOZLWKDQROGPDQZKRPKHPHWRQWKHURDGDQGVOHZKLPZKRZDV
QRQHRWKHUWKDQKLVIDWKHU/DLRV5HDFKLQJ7KHEHVKHIRXQGWKHFLW\KDUDVVHGE\WKH6SKLQ[ZKRDIIOLFWHGWKHODQG
ZLWKGURXJKWXQWLOVKHVKRXOGUHFHLYHDQDQVZHUWRKHUULGGOHV2LGLSRXVGHVWUR\HGWKHPRQVWHUE\VROYLQJKHUGDUN
VD\LQJVDQGDVDUHZDUGUHFHLYHGWKHNLQJGRPZLWKKLVRZQPRWKHU,RNDVWHDVKLVEULGH7KHQWKH(ULQ\HVKDVWHQHG
WKHGLVFRYHU\RIWKHVHGDUNGHHGV
,RNDVWHGLHGLQKHUEULGDOFKDPEHUDQG2LGLSRXVKDYLQJEOLQGHGKLPVHOIIOHGWRWKHJURYHRIWKH(XPHQLGHVQHDU
$WKHQVZKHUHDPLGIODVKLQJOLJKWQLQJDQGSHDOVRIWKXQGHUKHGLHG
2LGLSRXVLVWKH6XQ/LNHDOOWKHVRODUKHURHVIURP+HUDNOHVDQG3HUVHXVWR6LJXUGDQG:LOOLDP7HOOKHSHUIRUPVKLV
PDUYHOORXVGHHGVDWWKHEHKHVWRIRWKHUV+LVIDWKHU/DLRVLVQRQHRWKHUWKDQWKH9HGLF'DV\XWKHQLJKWGHPRQZKRLV
VXUHWREHGHVWUR\HGE\KLVVRODURIIVSULQJ,QWKHHYHQLQJ2LGLSRXVLVXQLWHGWRWKH'DZQWKHPRWKHUZKRKDGERUQH
KLPDWGD\EUHDNDQGKHUHWKHRULJLQDOVWRU\GRXEWOHVVHQGHG,QWKH9HGLFK\PQVZHILQG,QGUDWKH6XQERUQRI
'DKDQD 'DSKQH WKH'DZQZKRPKHDIWHUZDUGVLQWKHHYHQLQJWZLOLJKWPDUULHV7RWKH,QGLDQPLQGWKHVWRU\ZDV
KHUHFRPSOHWHEXWWKH*UHHNVKDGIRUJRWWHQDQGRXWJURZQWKHSULPLWLYHVLJQLILFDWLRQRIWKHP\WK7RWKHP2LGLSRXV
DQG,RNDVWHZHUHKXPDQRUDWOHDVWDQWKURSRPRUSKLFEHLQJVDQGDPDUULDJHEHWZHHQWKHPZDVDIHDUIXOFULPHZKLFK
FDOOHGIRUELWWHUH[SLDWLRQ7KXVWKHODWWHUSDUWRIWKHVWRU\DURVHLQWKHHIIRUWWRVDWLVI\DPRUDOIHHOLQJ$VWKHQDPHRI
/DLRVGHQRWHVWKHGDUNQLJKWVROLNH,ROH2LQRQHDQG,DPRVWKHZRUG,RNDVWHVLJQLILHVWKHGHOLFDWHYLROHWWLQWVRIWKH
PRUQLQJDQGHYHQLQJFORXGV2LGLSRXVZDVH[SRVHGOLNH3DULVXSRQ,GD D9HGLFZRUGPHDQLQJ³WKHHDUWK´ EHFDXVH
WKHVXQOLJKWLQWKHPRUQLQJOLHVXSRQWKHKLOOVLGH>@+HLVERUQHRQWRWKHGHVWUXFWLRQRIKLVIDWKHUDQGWKHLQFHVWXRXV
PDUULDJHZLWKKLVPRWKHUE\DQLUUHVLVWLEOH0RLUDRU)DWHWKHVXQFDQQRWEXWVOD\WKHGDUNQHVVDQGKDVWHQWRWKHFRXFK
RIWKHYLROHWWZLOLJKW>@7KH6SKLQ[LVWKHVWRUPGHPRQZKRVLWVRQWKHFORXGURFNDQGLPSULVRQVWKHUDLQVKHLVWKH
VDPHDV0HGXVD$KLRU(FKLGQDDQG&KLPDLUDDQGLVDNLQWRWKHWKURWWOLQJVQDNHVRIGDUNQHVVZKLFKWKHMHDORXV+HUH
VHQWWRGHVWUR\+HUDNOHVLQKLVFUDGOH7KHLGHDZDVQRWGHULYHGIURP(J\SWEXWWKH*UHHNVRQILQGLQJ(J\SWLDQ
ILJXUHVUHVHPEOLQJWKHLUFRQFHSWLRQRIWKH6SKLQ[FDOOHGWKHPE\WKHVDPHQDPH7KHRPQLVFLHQW6XQFRPSUHKHQGV
WKHVHQVHRIKHUGDUNPXWWHULQJVDQGGHVWUR\VKHUDV,QGUDVOD\V9ULWUDEULQJLQJGRZQUDLQXSRQWKHSDUFKHGHDUWK
7KH(ULQ\HVZKREULQJWROLJKWWKHFULPHVRI2LGLSRXVKDYHEHHQH[SODLQHGLQDSUHYLRXVSDSHUDVWKHSHUVRQLILFDWLRQ
RIGD\OLJKWZKLFKUHYHDOVWKHHYLOGHHGVGRQHXQGHUWKHFRYHURIQLJKW7KHJURYHRIWKH(ULQ\HVOLNHWKHJDUGHQRIWKH
+\SHUERUHDQVUHSUHVHQWV³WKHIDLU\QHWZRUNRIFORXGVZKLFKDUHWKHILUVWWRUHFHLYHDQGWKHODVWWRORVHWKHOLJKWRIWKH
VXQLQWKHPRUQLQJDQGLQWKHHYHQLQJKHQFHDOWKRXJK2LGLSRXVGLHVLQDWKXQGHUVWRUP\HWWKH(XPHQLGHVDUHNLQGWR
KLPDQGKLVODVWKRXULVRQHRIGHHSSHDFHDQGWUDQTXLOOLW\´>@7RWKHODVWUHPDLQVZLWKKLPKLVGDXJKWHU$QWLJRQH
³VKHZKRLVERUQRSSRVLWH´WKHSDOHOLJKWZKLFKVSULQJVXSRSSRVLWHWRWKHVHWWLQJVXQ
>@7KH3HUVLDQ&\UXVLVDQKLVWRULFDOSHUVRQDJHEXWWKHVWRU\RIKLVSHULOVLQLQIDQF\EHORQJVWRVRODUP\WKRORJ\DV
PXFKDVWKHVWRULHVRIWKHPDJLFVOHHSRI&KDUOHPDJQHDQG%DUEDURVVD+LVJUDQGIDWKHU$VW\DJHVLVSXUHO\DP\WKLFDO
FUHDWLRQKLVQDPHEHLQJLGHQWLFDOZLWKWKDWRIWKHQLJKWGHPRQ$]LGDKDNDZKRDSSHDUVLQWKH6KDK1DPHKDVWKH
ELWLQJVHUSHQW=RKDN6HH&R[0\WKRORJ\RIWKH$U\DQ1DWLRQV,,
>@,QPHGLDHYDOOHJHQGWKLVUHVLVWOHVV0RLUDLVWUDQVIRUPHGLQWRWKHFXUVHZKLFKSUHYHQWVWKH:DQGHULQJ-HZIURP
UHVWLQJXQWLOWKHGD\RIMXGJPHQW
>@&R[0DQXDORI0\WKRORJ\S
7KHVHH[DPSOHVVKRZWKDWDVWRU\URRWPD\EHDVSUROLILFRIKHWHURJHQHRXVRIIVSULQJDVDZRUGURRW-XVWDVZHILQGWKH
URRWVSDN³WRORRN´EHJHWWLQJZRUGVVRYDULRXVDVVFHSWLFELVKRSVSHFXODWHFRQVSLFVXRXVVSHFLHVDQGVSLFHZHPXVW
H[SHFWWRILQGDVLPSOHUHSUHVHQWDWLRQRIWKHGLXUQDOFRXUVHRIWKHVXQOLNHWKRVHO\ULFDOO\JLYHQLQWKH9HGDEUDQFKLQJ
RIILQWRVWRULHVDVGLYHUVLILHGDVWKRVHRI2LGLSRXV+HUDNOHV2G\VVHXVDQG6LHJIULHG,QIDFWWKHW\SHVXSRQZKLFK
VWRULHVDUHFRQVWUXFWHGDUHZRQGHUIXOO\IHZ6RPHFOHYHUSOD\ZULJKW²,EHOLHYHLWZDV6FULEH²KDVVDLGWKDWWKHUHDUH
RQO\VHYHQSRVVLEOHGUDPDWLFVLWXDWLRQVWKDWLVDOOWKHSOD\VLQWKHZRUOGPD\EHFODVVHGZLWKVRPHRQHRIVHYHQ
DUFKHW\SDOGUDPDV>@,IWKLVEHWUXHWKHDVWRQLVKLQJFRPSOH[LW\RIP\WKRORJ\WDNHQLQWKHFRQFUHWHDVFRPSDUHG
ZLWKLWVH[WUHPHVLPSOLFLW\ZKHQDQDO\]HGQHHGQRWVXUSULVHXV
>@,QKLVLQWHUHVWLQJDSSHQGL[WR+HQGHUVRQ¶V)RON/RUHRIWKH1RUWKHUQ&RXQWLHVRI(QJODQG0U%DULQJ*RXOGKDV
PDGHDQLQJHQLRXVDQGSUDLVHZRUWK\DWWHPSWWRUHGXFHWKHHQWLUHH[LVWLQJPDVVRIKRXVHKROGOHJHQGVWRDERXWILIW\
VWRU\URRWVDQGKLVOLVWWKRXJKERWKUHGXQGDQWDQGGHIHFWLYHLVQHYHUWKHOHVVDVDQHPSLULFDOFODVVLILFDWLRQYHU\
LQVWUXFWLYH
7KHH[WUHPHOLPLWVRIGLYHUJHQFHEHWZHHQVWRULHVGHVFHQGHGIURPDFRPPRQURRWDUHSUREDEO\UHDFKHGLQWKHP\WKVRI
OLJKWDQGGDUNQHVVZLWKZKLFKWKHSUHVHQWGLVFXVVLRQLVPDLQO\FRQFHUQHG7KHVXEMHFWZLOOEHEHVWHOXFLGDWHGE\WDNLQJ
DVLQJOHRQHRIWKHVHP\WKVDQGIROORZLQJLWVYDULRXVIRUWXQHVWKURXJKGLIIHUHQWUHJLRQVRIWKH$U\DQZRUOG7KHP\WK
RI+HUFXOHVDQG&DFXVKDVEHHQWUHDWHGE\0%UHDOLQDQHVVD\ZKLFKLVRQHRIWKHPRVWYDOXDEOHFRQWULEXWLRQVHYHU
PDGHWRWKHVWXG\RIFRPSDUDWLYHP\WKRORJ\DQGZKLOHIROORZLQJKLVIRRWVWHSVRXUWDVNZLOOEHDQHDV\RQH
7KHEDWWOHEHWZHHQ+HUFXOHVDQG&DFXVDOWKRXJKRQHRIWKHROGHVWRIWKHWUDGLWLRQVFRPPRQWRWKHZKROH,QGR
(XURSHDQUDFHDSSHDUVLQ,WDO\DVDSXUHO\ORFDOOHJHQGDQGLVQDUUDWHGDVVXFKE\9LUJLOLQWKHHLJKWKERRNRIWKH
$(QHLGE\/LY\DWWKHEHJLQQLQJRIKLVKLVWRU\DQGE\3URSHUWLXVDQG2YLG+HUFXOHVMRXUQH\LQJWKURXJK,WDO\DIWHU
KLVYLFWRU\RYHU*HU\RQVWRSVWRUHVWE\WKHEDQNRIWKH7LEHU:KLOHKHLVWDNLQJKLVUHSRVHWKHWKUHHKHDGHGPRQVWHU
&DFXVDVRQRI9XOFDQDQGDIRUPLGDEOHEULJDQGFRPHVDQGVWHDOVKLVFDWWOHDQGGUDJVWKHPWDLOIRUHPRVWWRDVHFUHW
FDYHUQLQWKHURFNV%XWWKHORZLQJRIWKHFRZVDURXVHV+HUFXOHVDQGKHUXQVWRZDUGWKHFDYHUQZKHUHWKHUREEHU
DOUHDG\IULJKWHQHGKDVWDNHQUHIXJH$UPHGZLWKDKXJHIOLQW\URFNKHEUHDNVRSHQWKHHQWUDQFHRIWKHFDYHUQDQG
FRQIURQWVWKHGHPRQZLWKLQZKRYRPLWVIRUWKIODPHVDWKLPDQGURDUVOLNHWKHWKXQGHULQWKHVWRUPFORXG$IWHUDVKRUW
FRPEDWKLVKLGHRXVERG\IDOOVDWWKHIHHWRIWKHLQYLQFLEOHKHURZKRHUHFWVRQWKHVSRWDQDOWDUWR-XSLWHU,QYHQWRULQ
FRPPHPRUDWLRQRIWKHUHFRYHU\RIKLVFDWWOH$QFLHQW5RPHWHHPHGZLWKUHPLQLVFHQFHVRIWKLVHYHQWZKLFK/LY\
UHJDUGHGDVILUVWLQWKHORQJVHULHVRIWKHH[SORLWVRIKLVFRXQWU\PHQ7KHSODFHZKHUH+HUFXOHVSDVWXUHGKLVR[HQZDV
NQRZQORQJDIWHUDVWKH)RUXP%RDULXPQHDULWWKH3RUWD7ULJHPLQDSUHVHUYHGWKHUHFROOHFWLRQRIWKHPRQVWHU¶VWULSOH
KHDGDQGLQWKHWLPHRI'LRGRUXV6LFXOXVVLJKWVHHUVZHUHVKRZQWKHFDYHUQRI&DFXVRQWKHVORSHRIWKH$YHQWLQH
(YHU\WHQWKGD\WKHHDUOLHUJHQHUDWLRQVRI5RPDQVFHOHEUDWHGWKHYLFWRU\ZLWKVROHPQVDFULILFHVDWWKH$UD0D[LPDDQG
RQGD\VRIWULXPSKWKHIRUWXQDWHJHQHUDOGHSRVLWHGWKHUHDWLWKHRIKLVERRW\WREHGLVWULEXWHGDPRQJWKHFLWL]HQV
,QWKLVIDPRXVP\WKKRZHYHUWKHJRG+HUFXOHVGLGQRWRULJLQDOO\ILJXUH7KH/DWLQ+HUFXOHVZDVDQHVVHQWLDOO\
SHDFHIXODQGGRPHVWLFGHLW\ZDWFKLQJRYHUKRXVHKROGVDQGHQFORVXUHVDQGQHDUO\DNLQWR7HUPLQXVDQGWKH3HQDWHV
+HGRHVQRWDSSHDUWRKDYHEHHQDVRODUGLYLQLW\DWDOO%XWWKHSXUHO\DFFLGHQWDOUHVHPEODQFHRIKLVQDPHWRWKDWRIWKH
*UHHNGHLW\+HUDNOHV>@DQGWKHPDQLIHVWLGHQWLW\RIWKH&DFXVP\WKZLWKWKHVWRU\RIWKHYLFWRU\RI+HUDNOHVRYHU
*HU\RQOHGWRWKHVXEVWLWXWLRQRI+HUFXOHVIRUWKHRULJLQDOKHURRIWKHOHJHQGZKRZDVQRQHRWKHUWKDQ-XSLWHUFDOOHG
E\KLV6DELQHQDPH6DQFXV1RZ-RKDQQHV/\GXVLQIRUPVXVWKDWLQ6DELQH6DQFXVVLJQLILHG³WKHVN\´DPHDQLQJ
ZKLFKZHKDYHDOUHDG\VHHQWREHORQJWRWKHQDPH-XSLWHU7KHVDPHVXEVWLWXWLRQRIWKH*UHHNKHURIRUWKH5RPDQ
GLYLQLW\OHGWRWKHDOWHUDWLRQRIWKHQDPHRIWKHGHPRQRYHUFRPHE\KLVWKXQGHUEROWV7KHFRUUXSWHGWLWOH&DFXVZDV
VXSSRVHGWREHLGHQWLFDOZLWKWKH*UHHNZRUGNDNRVPHDQLQJ³HYLO´DQGWKHFRUUXSWLRQZDVVXJJHVWHGE\WKHHSLWKHWRI
+HUDNOHV$OH[LNDNRVRU³WKHDYHUWHURILOO´2ULJLQDOO\KRZHYHUWKHQDPHZDV&DHFLXV³KHZKREOLQGVRUGDUNHQV´
DQGLWFRUUHVSRQGVOLWHUDOO\WRWKHQDPHRIWKH*UHHNGHPRQ.DLNLDVZKRPDQROGSURYHUESUHVHUYHGE\$XOXV*HOOLXV
GHVFULEHVDVDVWHDOHURIWKHFORXGV>@
>@7KHUHLVQRWKLQJLQFRPPRQEHWZHHQWKHQDPHV+HUFXOHVDQG+HUDNOHV7KHODWWHULVDFRPSRXQGIRUPHGOLNH
7KHPLVWRNOHVWKHIRUPHULVDVLPSOHGHULYDWLYHIURPWKHURRWRIKHUFHUH³WRHQFORVH´,I+HUDNOHVKDGDQ\HTXLYDOHQWLQ
/DWLQLWZRXOGQHFHVVDULO\EHJLQZLWK6DQGQRWZLWK+DVVHSWDFRUUHVSRQGVWRHSWDVHTXRUWRHSRPDLHWF,WVKRXOG
EHQRWHGKRZHYHUWKDW0RPPVHQLQWKHIRXUWKHGLWLRQRIKLV+LVWRU\DEDQGRQVWKLVYLHZDQGREVHUYHV³$XFKGHU
JULHFKLVFKH+HUDNOHVLVWIUXKDOV+HUFOXV+HUFROHV+HUFXOHVLQ,WDOLHQHLQKHLPLVFKXQGGRUWLQHLJHQWKXPOLFKHU:HLVH
DXIJHIDVVWZRUGHQZLHHVVFKHLQW]XQDFKVWDOV*RWWGHVJHZDJWHQ*HZLQQVXQGGHUDXVVHURUGHQWOLFKHQ
9HUPRJHQVYHUPHKUXQJ´5RPLVFKH*HVFKLFKWH,2QHZRXOGJODGO\OHDUQ0RPPVHQ¶VUHDVRQVIRUUHFXUULQJWR
WKLVDSSDUHQWO\OHVVGHIHQVLEOHRSLQLRQ
>@)RUWKHUHODWLRQVEHWZHHQ6DQFXVDQG+HUDNOHVVHH3UHOOHU5RPLVFKH0\WKRORJLHS9ROOPHU0\WKRORJLH
S
7KXVWKHVLJQLILFDQFHRIWKHP\WKEHFRPHVDSSDUHQW7KHWKUHHKHDGHG&DFXVLVVHHQWREHDQHDUNLQVPDQRI*HU\RQ¶V
WKUHHKHDGHGGRJ2UWKURVDQGRIWKHWKUHHKHDGHG.HUEHURVWKHKHOOKRXQGZKRJXDUGVWKHGDUNUHJLRQVEHORZWKH
KRUL]RQ+HLVWKHRULJLQDOZHUHZROIRU5DNVKDVDWKHILHQGRIWKHVWRUPZKRVWHDOVWKHEULJKWFDWWOHRI+HOLRVDQG
KLGHVWKHPLQWKHEODFNFDYHUQRXVURFNIURPZKLFKWKH\DUHDIWHUZDUGVUHVFXHGE\WKHVFKDPLURUOLJKWQLQJVWRQHRI
WKHVRODUKHUR7KHSK\VLFDOFKDUDFWHURIWKHP\WKLVDSSDUHQWHYHQLQWKHGHVFULSWLRQRI9LUJLOZKLFKUHDGV
ZRQGHUIXOO\OLNHD9HGLFK\PQLQFHOHEUDWLRQRIWKHH[SORLWVRI,QGUD%XWZKHQZHWXUQWRWKH9HGDLWVHOIZHILQGWKH
FRUUHFWQHVVRIWKHLQWHUSUHWDWLRQGHPRQVWUDWHGDJDLQDQGDJDLQZLWKLQH[KDXVWLEOHSURGLJDOLW\RIHYLGHQFH+HUHZH
HQFRXQWHUDJDLQWKHWKUHHKHDGHG2UWKURVXQGHUWKHLGHQWLFDOWLWOHRI9ULWUD³KHZKRVKURXGVRUHQYHORSV´FDOOHGDOVR
&XVKQD³KHZKRSDUFKHV´3DQL³WKHUREEHU´DQG$KL³WKHVWUDQJOHU´,QPDQ\K\PQVRIWKH5LJ9HGDWKHVWRU\LV
WROGRYHUDQGRYHUOLNHDPXVLFDOWKHPHDUUDQJHGZLWKYDULDWLRQV,QGUDWKHJRGRIOLJKWLVDKHUGVPDQZKRWHQGVD
KHUGRIEULJKWJROGHQRUYLROHWFRORXUHGFDWWOH9ULWUDDVQDNHOLNHPRQVWHUZLWKWKUHHKHDGVVWHDOVWKHPDQGKLGHV
WKHPLQDFDYHUQEXW,QGUDVOD\VKLPDV-XSLWHUVOHZ&DHFLXVDQGWKHFRZVDUHUHFRYHUHG7KHODQJXDJHRIWKHP\WKLV
VRVLJQLILFDQWWKDWWKH+LQGXFRPPHQWDWRUVRIWLOH9HGDKDYHWKHPVHOYHVJLYHQH[SODQDWLRQVRILWVLPLODUWRWKRVH
SURSRVHGE\PRGHUQSKLORORJLVWV7RWKHPWKHOHJHQGQHYHUEHFDPHGHYRLGRIVHQVHDVWKHP\WKRI*HU\RQDSSHDUHGWR
*UHHNVFKRODUVOLNH$SROORGRURV>@
>@%XUQRXI%KDJDYDWD3XUDQD,,,SO[[[YL%UHDORSFLWS
7KHVHFHOHVWLDOFDWWOHZLWKWKHLUUHVSOHQGHQWFRDWVRISXUSOHDQGJROGDUHWKHFORXGVOLWXSE\WKHVRODUUD\VEXWWKH
GHPRQZKRVWHDOVWKHPLVQRWDOZD\VWKHILHQGRIWKHVWRUPDFWLQJLQWKDWFDSDFLW\7KH\DUHVWROHQHYHU\QLJKWE\
9ULWUDWKHFRQFHDOHUDQG&DHFLXVWKHGDUNHQHUDQG,QGUDLVREOLJHGWRVSHQGKRXUVLQORRNLQJIRUWKHPVHQGLQJ
6DUDPDWKHLQFRQVWDQWWZLOLJKWWRQHJRWLDWHIRUWKHLUUHFRYHU\%HWZHHQWKHVWRUPP\WKDQGWKHP\WKRIQLJKWDQG
PRUQLQJWKHUHVHPEODQFHLVVRPHWLPHVVRFORVHDVWRFRQIXVHWKHLQWHUSUHWDWLRQRIWKHWZR0DQ\OHJHQGVZKLFK0D[
0XOOHUH[SODLQVDVP\WKVRIWKHYLFWRU\RIGD\RYHUQLJKWDUHH[SODLQHGE\'U.XKQDVVWRUPP\WKVDQGWKH
GLVDJUHHPHQWEHWZHHQWZRVXFKSRZHUIXOFKDPSLRQVZRXOGEHDVWDQGLQJUHSURDFKWRZKDWLVUDWKHUSUHPDWXUHO\FDOOHG
WKH6&,(1&(RIFRPSDUDWLYHP\WKRORJ\ZHUHLWQRWHDV\WRVKRZWKDWWKHGLIIHUHQFHLVPHUHO\DSSDUHQWDQGQRQ
HVVHQWLDO,WLVWKHROGVWRU\RIWKHVKLHOGZLWKWZRVLGHVDQGDFRPSDULVRQRIWKHLGHDVIXQGDPHQWDOWRWKHVHP\WKVZLOO
VKRZWKDWWKHUHLVQRYDOLGJURXQGIRUGLVDJUHHPHQWLQWKHLQWHUSUHWDWLRQRIWKHP7KHP\WKVRIVFKDPLUDQGWKH
GLYLQLQJURGDQDO\]HGLQDSUHYLRXVSDSHUH[SODLQWKHUHQGLQJRIWKHWKXQGHUFORXGDQGWKHSURFXULQJRIZDWHUZLWKRXW
HVSHFLDOUHIHUHQFHWRDQ\VWUXJJOHEHWZHHQRSSRVLQJGLYLQLWLHV%XWLQWKHP\WKRI+HUFXOHVDQG&DFXVWKHIXQGDPHQWDO
LGHDLVWKHYLFWRU\RIWKHVRODUJRGRYHUWKHUREEHUZKRVWHDOVWKHOLJKW1RZZKHWKHUWKHUREEHUFDUULHVRIIWKHOLJKWLQ
WKHHYHQLQJZKHQ,QGUDKDVJRQHWRVOHHSRUEROGO\UHDUVKLVEODFNIRUPDJDLQVWWKHVN\GXULQJWKHGD\WLPHFDXVLQJ
GDUNQHVVWRVSUHDGRYHUWKHHDUWKZRXOGPDNHOLWWOHGLIIHUHQFHWRWKHIUDPHUVRIWKHP\WK7RDFKLFNHQDVRODUHFOLSVH
LVWKHVDPHWKLQJDVQLJKWIDOODQGKHJRHVWRURRVWDFFRUGLQJO\:K\WKHQVKRXOGWKHSULPLWLYHWKLQNHUKDYHPDGHD
GLVWLQFWLRQEHWZHHQWKHGDUNHQLQJRIWKHVN\FDXVHGE\EODFNFORXGVDQGWKDWFDXVHGE\WKHURWDWLRQRIWKHHDUWK"+H
KDGQRPRUHFRQFHSWLRQRIWKHVFLHQWLILFH[SODQDWLRQRIWKHVHSKHQRPHQDWKDQWKHFKLFNHQKDVRIWKHVFLHQWLILF
H[SODQDWLRQRIDQHFOLSVH)RUKLPLWZDVHQRXJKWRNQRZWKDWWKHVRODUUDGLDQFHZDVVWROHQLQWKHRQHFDVHDVLQWKH
RWKHUDQGWRVXVSHFWWKDWWKHVDPHGHPRQZDVWREODPHIRUERWKUREEHULHV
7KH9HGDLWVHOIVXVWDLQVWKLVYLHZ,WLVFHUWDLQWKDWWKHYLFWRU\RI,QGUDRYHU9ULWUDLVHVVHQWLDOO\WKHVDPHDVKLVYLFWRU\
RYHUWKH3DQLV9ULWUDWKHVWRUPILHQGLVKLPVHOIFDOOHGRQHRIWKH3DQLV\HWWKHODWWHUDUHXQLIRUPO\UHSUHVHQWHGDV
QLJKWGHPRQV7KH\VWHDO,QGUD¶VJROGHQFDWWOHDQGGULYHWKHPE\FLUFXLWRXVSDWKVWRDGDUNKLGLQJSODFHQHDUWKH
HDVWHUQKRUL]RQ,QGUDVHQGVWKHGDZQQ\PSK6DUDPDWRVHDUFKIRUWKHPEXWDVVKHFRPHVZLWKLQVLJKWRIWKHGDUN
VWDEOHWKH3DQLVWU\WRFRD[KHUWRVWD\ZLWKWKHP³/HWXVPDNHWKHHRXUVLVWHUGRQRWJRDZD\DJDLQZHZLOOJLYH
WKHHSDUWRIWKHFRZV2GDUOLQJ´>@$FFRUGLQJWRWKHWH[WRIWKLVK\PQVKHVFRUQVWKHLUVROLFLWDWLRQVEXWHOVHZKHUH
WKHILFNOHGDZQQ\PSKLVVDLGWRFRTXHWZLWKWKHSRZHUVRIGDUNQHVV6KHGRHVQRWFDUHIRUWKHLUFRZVEXWZLOOWDNHD
GULQNRIPLONLIWKH\ZLOOEHVRJRRGDVWRJHWLWIRUKHU
7KHQVKHJRHVEDFNDQGWHOOV,QGUDWKDWVKHFDQQRWILQGWKH
FRZV+HNLFNVKHUZLWKKLVIRRWDQGVKHUXQVEDFNWRWKH
3DQLVIROORZHGE\WKHJRGZKRVPLWHVWKHPDOOZLWKKLV
XQHUULQJDUURZVDQGUHFRYHUVWKHVWROHQOLJKW)URPVXFKD
VLPSOHEHJLQQLQJDVWKLV
KDVEHHQGHGXFHGWKH*UHHNP\WKRIWKHIDLWKOHVVQHVVRI+HOHQ>@
>@0D[0XOOHU6FLHQFHRI/DQJXDJH,,
>@$V0D[0XOOHUREVHUYHV³DSDUWIURPDOOP\WKRORJLFDOFRQVLGHUDWLRQV6DUDPDLQ6DQVNULWLVWKHVDPHZRUGDV
+HOHQDLQ*UHHN´2SFLWS7KHQDPHVFRUUHVSRQGSKRQHWLFDOO\OHWWHUIRUOHWWHUDV6XU\DFRUUHVSRQGVWR+HOLRV
6DUDPH\DVWR+HUPHLDVDQG$KDU\XWR$FKLOOHXV0XOOHUKDVSODXVLEO\VXJJHVWHGWKDW3DULVVLPLODUO\DQVZHUVWRWKH
3DQLV
7KHVHQLJKWGHPRQVWKH3DQLVWKRXJKQRWDSSDUHQWO\UHJDUGHGZLWKDQ\VWURQJIHHOLQJRIPRUDOFRQGHPQDWLRQDUH
QHYHUWKHOHVVKDWHGDQGGUHDGHGDVWKHDXWKRUVRIFDODPLW\7KH\QRWRQO\VWHDOWKHGD\OLJKWEXWWKH\SDUFKWKHHDUWK
DQGZLWKHUWKHIUXLWVDQGWKH\VOD\YHJHWDWLRQGXULQJWKHZLQWHUPRQWKV$V&DHFLXVWKH³GDUNHQHU´EHFDPHXOWLPDWHO\
FKDQJHGLQWR&DFXVWKH³HYLORQH´VRWKHQDPHRI9ULWUDWKH³FRQFHDOHU´WKHPRVWIDPRXVRIWKH3DQLVZDVJUDGXDOO\
JHQHUDOL]HGXQWLOLWFDPHWRPHDQ³HQHP\´OLNHWKH(QJOLVKZRUGILHQGDQGEHJDQWREHDSSOLHGLQGLVFULPLQDWHO\WRDQ\
NLQGRIHYLOVSLULW,QRQHSODFHKHLVFDOOHG$GHYDWKH³HQHP\RIWKHJRGV´DQHSLWKHWH[DFWO\HTXLYDOHQWWRWKH3HUVLDQ
GHY
,QWKH=HQGDYHVWDWKHP\WKRI+HUFXOHVDQG&DFXVKDVJLYHQULVHWRDYDVWV\VWHPRIWKHRORJ\7KHILHQGLVK3DQLVDUH
FRQFHQWUDWHGLQ$KULPDQRU$QURPDLQ\DVZKRVHQDPHVLJQLILHVWKH³VSLULWRIGDUNQHVV´DQGZKRFDUULHVRQD
SHUSHWXDOZDUIDUHDJDLQVW2UPX]GRU$KXUDPD]GDZKRLVGHVFULEHGE\KLVRUGLQDU\VXUQDPH6SHQWRPDLQ\DVDVWKH
³VSLULWRIOLJKW´7KHDQFLHQWSRO\WKHLVPKHUHJLYHVSODFHWRDUHILQHGGXDOLVPQRWYHU\GLIIHUHQWIURPZKDWLQPDQ\
&KULVWLDQVHFWVKDVSDVVHGFXUUHQWDVPRQRWKHLVP$KULPDQLVWKHDUFKILHQGZKRVWUXJJOHVZLWK2UPX]GQRWIRUWKH
SRVVHVVLRQRIDKHUGRISHULVKDEOHFDWWOHEXWIRUWKHGRPLQLRQRIWKHXQLYHUVH2UPX]GFUHDWHVWKHZRUOGSXUHDQG
EHDXWLIXOEXW$KULPDQFRPHVDIWHUKLPDQGFUHDWHVHYHU\WKLQJWKDWLVHYLOLQLW+HQRWRQO\NHHSVWKHHDUWKFRYHUHG
ZLWKGDUNQHVVGXULQJKDOIRIWKHGD\DQGZLWKKROGVWKHUDLQDQGGHVWUR\VWKHFURSVEXWKHLVWKHDXWKRURIDOOHYLO
WKRXJKWVDQGWKHLQVWLJDWRURIDOOZLFNHGDFWLRQV/LNHKLVSURJHQLWRU9ULWUDDQGKLVRIIVSULQJ6DWDQKHLVUHSUHVHQWHG
XQGHUWKHIRUPRIDVHUSHQWDQGWKHGHVWUXFWLRQZKLFKXOWLPDWHO\DZDLWVWKHVHGHPRQVLVDOVRLQUHVHUYHIRUKLP
(YHQWXDOO\WKHUHLVWREHDGD\RIUHFNRQLQJZKHQ$KULPDQZLOOEHERXQGLQFKDLQVDQGUHQGHUHGSRZHUOHVVRUZKHQ
DFFRUGLQJWRDQRWKHUDFFRXQWKHZLOOEHFRQYHUWHGWRULJKWHRXVQHVVDV%XUQVKRSHGDQG2ULJHQEHOLHYHGZRXOGEHWKH
FDVHZLWK6DWDQ
7KLVGXDOLVPRIWKHDQFLHQW3HUVLDQVKDVH[HUWHGDSRZHUIXOLQIOXHQFHXSRQWKHGHYHORSPHQWRI&KULVWLDQWKHRORJ\7KH
YHU\LGHDRIDQDUFKILHQG6DWDQZKLFK&KULVWLDQLW\UHFHLYHGIURP-XGDLVPVHHPVHLWKHUWRKDYHEHHQVXJJHVWHGE\WKH
3HUVLDQ$KULPDQRUDWOHDVWWRKDYHGHULYHGLWVSULQFLSDOFKDUDFWHULVWLFVIURPWKDWVRXUFH7KHUHLVQRHYLGHQFHWKDWWKH
-HZVSUHYLRXVWRWKH%DE\ORQLVKFDSWLYLW\SRVVHVVHGWKHFRQFHSWLRQRID'HYLODVWKHDXWKRURIDOOHYLO,QWKHHDUOLHU
ERRNVRIWKH2OG7HVWDPHQW-HKRYDKLVUHSUHVHQWHGDVGLVSHQVLQJZLWKKLVRZQKDQGWKHJRRGDQGWKHHYLOOLNHWKH=HXV
RIWKH,OLDG>@7KHVWRU\RIWKHVHUSHQWLQ(GHQ²DQ$U\DQVWRU\LQHYHU\SDUWLFXODUZKLFKKDVFUHSWLQWRWKH
3HQWDWHXFK²LVQRWRQFHDOOXGHGWRLQWKH2OG7HVWDPHQWDQGWKHQRWLRQRI6DWDQDVWKHDXWKRURIHYLODSSHDUVRQO\LQ
WKHODWHUERRNVFRPSRVHGDIWHUWKH-HZVKDGFRPHLQWRFORVHFRQWDFWZLWK3HUVLDQLGHDV>@,QWKH%RRNRI-REDV
5HYLOOHREVHUYHV6DWDQLV³VWLOODPHPEHURIWKHFHOHVWLDOFRXUWEHLQJRQHRIWKHVRQVRIWKH(ORKLPEXWKDYLQJDVKLV
VSHFLDORIILFHWKHFRQWLQXDODFFXVDWLRQRIPHQDQGKDYLQJEHFRPHVRVXVSLFLRXVE\KLVSUDFWLFHDVSXEOLFDFFXVHUWKDW
KHEHOLHYHVLQWKHYLUWXHRIQRRQHDQGDOZD\VSUHVXSSRVHVLQWHUHVWHGPRWLYHVIRUWKHSXUHVWPDQLIHVWDWLRQVRIKXPDQ
SLHW\´,QWKLVZD\WKHFKDUDFWHURIWKLVDQJHOEHFDPHLQMXUHGDQGKHEHFDPHPRUHDQGPRUHDQREMHFWRIGUHDGDQG
GLVOLNHWRPHQXQWLOWKHODWHU-HZVDVFULEHGWRKLPDOOWKHDWWULEXWHVRI$KULPDQDQGLQWKLVVLQJXODUO\DOWHUHGVKDSHKH
SDVVHGLQWR&KULVWLDQWKHRORJ\%HWZHHQWKH6DWDQRIWKH%RRNRI-REDQGWKHPHGLDHYDO'HYLOWKHPHWDPRUSKRVLVLVDV
JUHDWDVWKDWZKLFKGHJUDGHGWKHVWHUQ(ULQ\VZKREULQJVHYLOGHHGVWROLJKWLQWRWKHGHPRQOLNH)XU\ZKRWRUPHQWV
ZURQJGRHUVLQ7DUWDUXVDQGPDNLQJDOORZDQFHIRUGLIIHUHQFHRIFLUFXPVWDQFHVWKHSURFHVVRIGHJUDGDWLRQKDVEHHQ
YHU\QHDUO\WKHVDPHLQWKHWZRFDVHV
>@³,FUHDWHHYLO´,VDLDK[LY³6KDOOWKHUHEHHYLOLQWKHFLW\DQGWKH/RUGKDWKQRWGRQHLW"´$PRVLLLFI,OLDG
[[LYDQGFRQWUDVW6DPXHO[[LYZLWK&KURQLFOHV[[L
>@1RULVWKHUHDQ\JURXQGIRUEHOLHYLQJWKDWWKHVHUSHQWLQWKH(GHQP\WKLVLQWHQGHGIRU6DWDQ7KHLGHQWLILFDWLRQLV
HQWLUHO\WKHZRUNRIPRGHUQGRJPDWLFWKHRORJ\DQGLVGXHQDWXUDOO\HQRXJKWRWKHKDELWVRFRPPRQDOLNHDPRQJ
WKHRORJLDQVDQGOD\PHQRIUHDVRQLQJDERXWWKH%LEOHDVLILWZHUHDVLQJOHERRNDQGQRWDFROOHFWLRQRIZULWLQJVRI
GLIIHUHQWDJHVDQGRIYHU\GLIIHUHQWGHJUHHVRIKLVWRULFDXWKHQWLFLW\,QDIXWXUHZRUNHQWLWOHG³$U\DQD9DHGMR´,KRSH
WRH[DPLQHDWFRQVLGHUDEOHOHQJWKWKLVLQWHUHVWLQJP\WKRIWKHJDUGHQRI(GHQ
7KHPHGLDHYDOFRQFHSWLRQRIWKH'HYLOLVDJURWHVTXHFRPSRXQGRIHOHPHQWVGHULYHGIURPDOOWKHV\VWHPVRISDJDQ
P\WKRORJ\ZKLFK&KULVWLDQLW\VXSHUVHGHG+HLVSULPDULO\DUHEHOOLRXVDQJHOH[SHOOHGIURPKHDYHQDORQJZLWKKLV
IROORZHUVOLNHWKHJLDQWVZKRDWWHPSWHGWRVFDOH2O\PSRVDQGOLNHWKHLPSLRXV(IUHHWVRI$UDELDQOHJHQGZKRUHYROWHG
DJDLQVWWKHEHQHILFHQWUXOHRI6RORPRQ$VWKHVHUSHQWSULQFHRIWKHRXWHUGDUNQHVVKHUHWDLQVWKHROGFKDUDFWHULVWLFVRI
9ULWUD$KL7\SKRQDQG(FKLGQD$VWKHEODFNGRJZKLFKDSSHDUVEHKLQGWKHVWRYHLQ'U)DXVW¶VVWXG\KHLVWKH
FODVVLFKHOOKRXQG.HUEHURVWKH9HGLF&DUYDUD)URPWKHV\OYDQGHLW\3DQKHJHWVKLVJRDWOLNHERG\KLVKRUQVDQG
FORYHQKRRIV/LNHWKHZLQGJRG2USKHXVWRZKRVHPXVLFWKHWUHHVEHQWWKHLUKHDGVWROLVWHQKHLVDQXQULYDOOHGSOD\HU
RQWKHEDJSLSHV/LNHWKRVHRWKHUZLQGJRGVWKHSV\FKRSRPS+HUPHVDQGWKHZLOGKXQWVPDQ2GLQKHLVWKHSULQFHRI
WKHSRZHUVRIWKHDLUKLVIOLJKWWKURXJKWKHPLGQLJKWVN\DWWHQGHGE\KLVWURRSRIZLWFKHVPRXQWHGRQWKHLUEURRPV
ZKLFKVRPHWLPHVEUHDNWKHERXJKVDQGVZHHSWKHOHDYHVIURPWKHWUHHVLVWKHVDPHDVWKHIXULRXVFKDVHRIWKH(UONLQJ
2GLQRUWKH%XUFNDU9LWWLNDE+HLV'LRQ\VRVZKRFDXVHVUHGZLQHWRIORZIURPWKHGU\ZRRGDOLNHRQWKHGHFNRIWKH
7\UUKHQLDQSLUDWHVKLSDQGLQ$XHUEDFK¶VFHOODUDW/HLS]LJ+HLV:D\ODQGWKHVPLWKDVNLOIXOZRUNHULQPHWDOVDQGD
ZRQGHUIXODUFKLWHFWOLNHWKHFODVVLFILUHJRG+HSKDLVWRVRU9XOFDQDQGOLNH+HSKDLVWRVKHLVODPHIURPWKHHIIHFWVRI
KLVIDOOIURPKHDYHQ)URPWKHOLJKWQLQJJRG7KRUKHREWDLQVKLVUHGEHDUGKLVSLWFKIRUNDQGKLVSRZHURYHU
WKXQGHUEROWVDQGOLNHWKDWDQFLHQWGHLW\KHLVLQWKHKDELWRIEHDWLQJKLVZLIHEHKLQGWKHGRRUZKHQWKHUDLQIDOOVGXULQJ
VXQVKLQH)LQDOO\KHWDNHVDKLQWIURP3RVHLGRQDQGIURPWKHVZDQPDLGHQVDQGDSSHDUVDVDZDWHULPSRU1L[\
ZKHQFHSUREDEO\KLVQDPHRI2OG1LFN DQGDVWKH'DY\ GHYD ZKRVH³ORFNHU´LVVLWXDWHGDWWKHERWWRPRIWKH
VHD>@
>@)RUIXUWKHUSDUWLFXODUVVHH&R[0\WKRORJ\RIWKH$U\DQ1DWLRQV9RO,,SSWRZKLFK,DPLQGHEWHGIRU
VHYHUDORIWKHGHWDLOVKHUHJLYHQ&RPSDUH:HOFNHU*ULHFKLVFKH*RWWHUOHKUH,VHT
$FFRUGLQJWRWKH6FRWFKGLYLQHVRIWKHVHYHQWHHQWKFHQWXU\WKH'HYLOLVDOHDUQHGVFKRODUDQGSURIRXQGWKLQNHU+DYLQJ
SURILWHGE\VL[WKRXVDQG\HDUVRILQWHQVHVWXG\DQGPHGLWDWLRQKHKDVDOOVFLHQFHSKLORVRSK\DQGWKHRORJ\DWKLV
WRQJXH¶VHQGDQGDVKLVVNLOOKDVLQFUHDVHGZLWKDJHKHLVIDUPRUHWKDQDPDWFKIRUPRUWDOVLQFXQQLQJ>@6XFK
KRZHYHULVQRWWKHYLHZWDNHQE\PHGLDHYDOP\WKRORJ\ZKLFKXVXDOO\UHSUHVHQWVKLVVWXSLGLW\DVHTXDOOLQJKLV
PDOLJQLW\7KHYLFWRU\RI+HUFXOHVRYHU&DFXVLVUHSHDWHGLQDKXQGUHGPHGLDHYDOOHJHQGVLQZKLFKWKH'HYLOLV
RYHUUHDFKHGDQGPDGHDODXJKLQJVWRFN7KHJHUPRIWKLVQRWLRQPD\EHIRXQGLQWKHEOLQGLQJRI3RO\SKHPRVE\
2G\VVHXVZKLFKLVLWVHOIDYLFWRU\RIWKHVXQKHURRYHUWKHQLJKWGHPRQDQGZKLFKFXULRXVO\UHDSSHDUVLQD0LGGOH
$JHVWRU\QDUUDWHGE\0U&R[³7KH'HYLODVNVDPDQZKRLVPRXOGLQJEXWWRQVZKDWKHPD\EHGRLQJDQGZKHQWKH
PDQDQVZHUVWKDWKHLVPRXOGLQJH\HVDVNVKLPIXUWKHUZKHWKHUKHFDQJLYHKLPDSDLURIQHZH\HV+HLVWROGWRFRPH
DJDLQDQRWKHUGD\DQGZKHQKHPDNHVKLVDSSHDUDQFHDFFRUGLQJO\WKHPDQWHOOVKLPWKDWWKHRSHUDWLRQFDQQRWEH
SHUIRUPHGULJKWO\XQOHVVKHLVILUVWWLJKWO\ERXQGZLWKKLVEDFNIDVWHQHGWRDEHQFK:KLOHKHLVWKXVSLQLRQHGKHDVNV
WKHPDQ¶VQDPH7KHUHSO\LV,VVL µKLPVHOI¶ :KHQWKHOHDGLVPHOWHGWKH'HYLORSHQVKLVH\HVZLGHWRUHFHLYHWKH
GHDGO\VWUHDP$VVRRQDVKHLVEOLQGHGKHVWDUWVXSLQDJRQ\EHDULQJDZD\WKHEHQFKWRZKLFKKHKDGEHHQERXQGDQG
ZKHQVRPHZRUNSHRSOHLQWKHILHOGVDVNKLPZKRKDGWKXVWUHDWHGKLPKLVDQVZHULVµ,VVLWHJJL¶ µ6HOIGLGLW¶ :LWKD
ODXJKWKH\ELGKLPOLHRQWKHEHGZKLFKKHKDVPDGHµVHOEVWJHWKDQVHOEVWKDEH¶7KH'HYLOGLHGRIKLVQHZH\HVDQG
ZDVQHYHUVHHQDJDLQ´
>@³0DQ\DPXVLQJSDVVDJHVIURP6FRWFKWKHRORJLDQVDUHFLWHGLQ%XFNOH¶V+LVWRU\RI&LYLOL]DWLRQ9RO,,S
7KHVDPHEHOLHILVLPSOLHGLQWKHTXDLQWPRQNLVKWDOHRI³&HOHVWLQXVDQGWKH0LOOHU¶V+RUVH´6HH7DOHVIURPWKH*HVWD
5RPDQRUXPS
,QKLVDWWHPSWVWRREWDLQKXPDQVRXOVWKH'HYLOLVIUHTXHQWO\IRLOHGE\WKHVXSHULRUFXQQLQJRIPRUWDOV2QFHKHDJUHHG
WREXLOGDKRXVHIRUDSHDVDQWLQH[FKDQJHIRUWKHSHDVDQW¶VVRXOEXWLIWKHKRXVHZHUHQRWILQLVKHGEHIRUHFRFNFURZ
WKHFRQWUDFWZDVWREHQXOODQGYRLG-XVWDVWKH'HYLOZDVSXWWLQJRQWKHODVWWLOHWKHPDQLPLWDWHGDFRFNFURZDQG
ZDNHGXSDOOWKHURRVWHUVLQWKHQHLJKERXUKRRGVRWKDWWKHILHQGKDGKLVODERXUIRUKLVSDLQV$PHUFKDQWRI/RXYDLQ
RQFHVROGKLPVHOIWRWKH'HYLOZKRKHDSHGXSRQKLPDOOPDQQHURIULFKHVIRUVHYHQ\HDUVDQGWKHQFDPHWRJHWKLP
7KHPHUFKDQW³WRRNWKH'HYLOLQDIULHQGO\PDQQHUE\WKHKDQGDQGDVLWZDVMXVWHYHQLQJVDLGµ:LIHEULQJDOLJKW
TXLFNO\IRUWKHJHQWOHPDQ¶µ7KDWLVQRWDWDOOQHFHVVDU\¶VDLGWKH'HYLO
µ,DPPHUHO\FRPHWRIHWFK\RX¶µ<HV\HVWKDW,NQRZYHU\ZHOO¶VDLGWKHPHUFKDQWµRQO\MXVWJUDQWPHWKHWLPHWLOO
WKLVOLWWOHFDQGOHHQGLVEXUQWRXWDV,KDYHDIHZOHWWHUVWRVLJQDQGWRSXWRQP\FRDW¶µ9HU\ZHOO¶VDLGWKH'HYLOµEXW
RQO\WLOOWKHFDQGOHLVEXUQWRXW¶µ*RRG¶VDLGWKHPHUFKDQWDQGJRLQJLQWRWKHQH[WURRPRUGHUHGWKHPDLGVHUYDQWWR
SODFHDODUJHFDVNIXOORIZDWHUFORVHWRDYHU\GHHSSLWWKDWZDVGXJLQWKHJDUGHQ7KHPHQVHUYDQWVDOVRFDUULHGHDFK
RIWKHPDFDVNWRWKHVSRWDQGZKHQDOOZDVGRQHWKH\ZHUHRUGHUHGHDFKWRWDNHDVKRYHODQGVWDQGURXQGWKHSLW
7KHPHUFKDQWWKHQUHWXUQHGWRWKH'HYLOZKRVHHLQJWKDWQRWPRUHWKDQDERXWDQLQFKRIFDQGOHUHPDLQHGVDLG
ODXJKLQJµ1RZJHW\RXUVHOIUHDG\LWZLOOVRRQEHEXUQWRXW¶µ7KDW,VHHDQGDPFRQWHQWEXW,VKDOOKROG\RXWR\RXU
ZRUGDQGVWD\WLOOLW,6EXUQW¶µ2IFRXUVH¶DQVZHUHGWKH'HYLOµ,VWLFNWRP\ZRUG¶µ,WLVGDUNLQWKHQH[WURRP¶
FRQWLQXHGWKHPHUFKDQWµEXW,PXVWILQGWKHJUHDWERRNZLWKFODVSVVROHWPHMXVWWDNHWKHOLJKWIRURQHPRPHQW¶
µ&HUWDLQO\¶VDLGWKH'HYLOµEXW,¶OOJRZLWK\RX¶+HGLGVRDQGWKHPHUFKDQW¶VWUHSLGDWLRQZDVQRZRQWKHLQFUHDVH
:KHQLQWKHQH[WURRPKHVDLGRQDVXGGHQµ$KQRZ,NQRZWKHNH\LVLQWKHJDUGHQGRRU¶$QGZLWKWKHVHZRUGVKH
UDQRXWZLWKWKHOLJKWLQWRWKHJDUGHQDQGEHIRUHWKH'HYLOFRXOGRYHUWDNHKLPWKUHZLWLQWRWKHSLWDQGWKHPHQDQG
WKHPDLGVSRXUHGZDWHUXSRQLWDQGWKHQILOOHGXSWKHKROHZLWKHDUWK1RZFDPHWKH'HYLOLQWRWKHJDUGHQDQGDVNHG
µ:HOOGLG\RXJHWWKHNH\"DQGKRZLVLWZLWKWKHFDQGOH"ZKHUHLVLW"¶µ7KHFDQGOH"¶VDLGWKHPHUFKDQWµ<HVWKH
FDQGOH¶µ+DKDKDLWLVQRW\HWEXUQWRXW¶DQVZHUHGWKHPHUFKDQWODXJKLQJµDQGZLOOQRWEHEXUQWRXWIRUWKHQH[W
ILIW\\HDUVLWOLHVWKHUHDKXQGUHGIDWKRPVGHHSLQWKHHDUWK¶:KHQWKH'HYLOKHDUGWKLVKHVFUHDPHGDZIXOO\DQGZHQW
RIIZLWKDPRVWLQWROHUDEOHVWHQFK´>@
>@7KRUSH1RUWKHUQ0\WKRORJ\9ROS
2QHGD\DIRZOHUZKRZDVDWHUULEOHEXQJOHUDQGFRXOGQ¶WKLWDELUGDWDGR]HQSDFHVVROGKLVVRXOWRWKH'HYLOLQ
RUGHUWREHFRPHD)UHLVFKXW]7KHILHQGZDVWRFRPHIRUKLPLQVHYHQ\HDUVEXWPXVWEHDOZD\VDEOHWRQDPHWKH
DQLPDODWZKLFKKHZDVVKRRWLQJRWKHUZLVHWKHFRPSDFWZDVWREHQXOOLILHG$IWHUWKDWGD\WKHIRZOHUQHYHUPLVVHGKLV
DLPDQGQHYHUGLGDIRZOHUFRPPDQGVXFKZDJHV:KHQWKHVHYHQ\HDUVZHUHRXWWKHIRZOHUWROGDOOWKHVHWKLQJVWRKLV
ZLIHDQGWKHWZDLQKLWXSRQDQH[SHGLHQWIRUFKHDWLQJWKH'HYLO7KHZRPDQVWULSSHGKHUVHOIGDXEHGKHUZKROHERG\
ZLWKPRODVVHVDQGUROOHGKHUVHOIXSLQDIHDWKHUEHGFXWRSHQIRUWKLVSXUSRVH7KHQVKHKRSSHGDQGVNLSSHGDERXWWKH
ILHOGZKHUHKHUKXVEDQGVWRRGSDUOH\LQJZLWK2OG1LFN³WKHUH¶VDVKRWIRU\RXILUHDZD\´VDLGWKH'HYLO³2IFRXUVH
,¶OOILUHEXWGR\RXILUVWWHOOPHZKDWNLQGRIDELUGLWLVHOVHRXUDJUHHPHQWLVFDQFHOOHG2OG%R\´7KHUHZDVQRKHOS
IRULWWKH'HYLOKDGWRRZQKLPVHOIQRQSOXVVHGDQGRIIKHIOHGZLWKDZKLIIRIEULPVWRQHZKLFKQHDUO\VXIIRFDWHGWKH
)UHLVFKXW]DQGKLVJRRGZRPDQ>@
>@7KRUSH1RUWKHUQ0\WKRORJ\9RO,,S,QWKH1RUVHVWRU\RI³1RWD3LQWRFKRRVHEHWZHHQWKHP´WKHROG
ZRPDQLVLQGRXEWDVWRKHURZQLGHQWLW\RQZDNLQJXSDIWHUWKHEXWFKHUKDVGLSSHGKHULQDWDUEDUUHODQGUROOHGKHURQ
DKHDSRIIHDWKHUVDQGZKHQ7UD\EDUNVDWKHUKHUSHUSOH[LW\LVDVJUHDWDVWKH'HYLO¶VZKHQIRROHGE\WKH)UHQVFKXW]
6HH'DVHQW1RUVH7DOHVS
,QWKHOHJHQGRI*DPEULQXVWKHILHQGLVVWLOOPRUHLQJORULRXVO\GHIHDWHG*DPEULQXVZDVDILGGOHUZKREHLQJMLOWHGE\
KLVVZHHWKHDUWZHQWRXWLQWRWKHZRRGVWRKDQJKLPVHOI$VKHZDVVLWWLQJRQWKHERXJKZLWKWKHFRUGDERXWKLVQHFN
SUHSDUDWRU\WRWDNLQJWKHIDWDOSOXQJHVXGGHQO\DWDOOPDQLQDJUHHQFRDWDSSHDUHGEHIRUHKLPDQGRIIHUHGKLVVHUYLFHV
+HPLJKWEHFRPHDVZHDOWK\DVKHOLNHGDQGPDNHKLVVZHHWKHDUWEXUVWZLWKYH[DWLRQDWKHURZQIROO\EXWLQWKLUW\
\HDUVKHPXVWJLYHXSKLVVRXOWR%HHO]HEXE7KHEDUJDLQZDVVWUXFNIRU*DPEULQXVWKRXJKWWKLUW\\HDUVDORQJWLPHWR
HQMR\RQH¶VVHOILQDQGSHUKDSVWKH'HYLOPLJKWJHWKLPLQDQ\HYHQWDVZHOOEHKXQJIRUDVKHHSDVIRUDODPE$LGHG
E\6DWDQKHLQYHQWHGFKLPLQJEHOOVDQGODJHUEHHUIRUERWKRIZKLFKDFKLHYHPHQWVKLVQDPHLVKHOGLQJUDWHIXO
UHPHPEUDQFHE\WKH7HXWRQ1RVRRQHUKDGWKH+RO\5RPDQ(PSHURUTXDIIHGDJDOORQRUWZRRIWKHQHZEHYHUDJH
WKDQKHPDGH*DPEULQXV'XNHRI%UDEDQWDQG&RXQWRI)ODQGHUVDQGWKHQLWZDVWKHILGGOHU¶VWXUQWRODXJKDWWKH
GLVFRPILWXUHRIKLVROGVZHHWKHDUW*DPEULQXVNHSWFOHDURIZRPHQVD\VWKHOHJHQGDQGVROLYHGLQSHDFH)RUWKLUW\
\HDUVKHVDWEHQHDWKKLVEHOIU\ZLWKWKHFKLPHVPHGLWDWLYHO\GULQNLQJEHHUZLWKKLVQREOHVDQGEXUJKHUVDURXQGKLP
7KHQ%HHO]HEXEVHQW-RFNRRQHRIKLVLPSVZLWKRUGHUVWREULQJEDFN*DPEULQXVEHIRUHPLGQLJKW%XW-RFNRZDVOLNH
6ZLYHOOHU¶V0DUFKLRQHVVLJQRUDQWRIWKHWDVWHRIEHHUQHYHUKDYLQJGUXQNRILWHYHQLQDVLSDQGWKH)OHPLVKVFKRSSHQ
ZHUHWRRPXFKIRUKLP+HIHOOLQWRDGUXQNHQVOHHSDQGGLGQRWZDNHXSXQWLOQRRQQH[WGD\DWZKLFKKHZDVVR
PRUWLILHGWKDWKHKDGQRWWKHIDFHWRJREDFNWRKHOODWDOO6R*DPEULQXVOLYHGRQWUDQTXLOO\IRUDFHQWXU\RUWZRDQG
GUDQNVRPXFKEHHUWKDWKHWXUQHGLQWRDEHHUEDUUHO>@
>@6HH'HXOLQ&RQWHVG¶XQ%XYHXUGH%LHUHSS
7KHFKDUDFWHURIJXOOLELOLW\DWWULEXWHGWRWKH'HYLOLQWKHVHOHJHQGVLVSUREDEO\GHULYHGIURPWKH7UROOVRU³QLJKWIRON´
RI1RUWKHUQP\WKRORJ\,QPRVWUHVSHFWVWKH7UROOVUHVHPEOHWKH7HXWRQLFHOYHVDQGIDLULHVDQGWKH-LQQRU(IUHHWVRI
WKH$UDELDQ1LJKWVEXWWKHLUSHGLJUHHLVOHVVKRQRXUDEOH7KHIDLULHVRU³:KLWH/DGLHV´ZHUHQRWRULJLQDOO\VSLULWVRI
GDUNQHVVEXWZHUHQHDUO\DNLQWRWKHVZDQPDLGHQVGDZQQ\PSKVDQGGU\DGVDQGWKRXJKWKHLUZUDWKZDVWREH
GUHDGHGWKH\ZHUHQRWPDOLJQDQWE\QDWXUH&KULVWLDQLW\KDYLQJQRSODFHIRUVXFKEHLQJVGHJUDGHGWKHPLQWR
VRPHWKLQJOLNHLPSVWKHPRVWFKDULWDEOHWKHRU\EHLQJWKDWWKH\ZHUHDQJHOVZKRKDGUHPDLQHGQHXWUDOGXULQJ6DWDQ¶V
UHEHOOLRQLQSXQLVKPHQWIRUZKLFK0LFKDHOH[SHOOHGWKHPIURPKHDYHQEXWKDVOHIWWKHLUXOWLPDWHIDWHXQDQQRXQFHG
XQWLOWKHGD\RIMXGJPHQW7KH-LQQDSSHDUWRKDYHEHHQVLPLODUO\GHJUDGHGRQWKHULVHRI0RKDPPHGDQLVP%XWWKH
7UROOVZHUHDOZD\VLPSVRIGDUNQHVV7KH\DUHGHVFHQGHGIURPWKH-RWXQVRU)URVW*LDQWVRI1RUWKHUQSDJDQLVPDQG
WKH\FRUUHVSRQGWRWKH3DQLVRUQLJKWGHPRQVRIWKH9HGD,QPDQ\1RUVHWDOHVWKH\DUHVDLGWREXUVWZKHQWKH\VHHWKH
ULVHQVXQ>@7KH\HDWKXPDQIOHVKDUHLJQRUDQWRIWKHVLPSOHVWDUWVDQGOLYHLQWKHGHHSHVWUHFHVVHVRIWKHIRUHVWRU
LQFDYHUQVRQWKHKLOOVLGHZKHUHWKHVXQOLJKWQHYHUSHQHWUDWHV6RPHRIWKHVHFKDUDFWHULVWLFVPD\YHU\OLNHO\KDYHEHHQ
VXJJHVWHGE\UHPLQLVFHQFHVRIWKHSULPHYDO/DSSVIURPZKRPWKH$U\DQLQYDGHUVZUHVWHGWKHGRPLQLRQRI
(XURSH>@,QVRPHOHJHQGVWKH7UROOVDUHUHSUHVHQWHGDVDQDQFLHQWUDFHRIEHLQJVQRZVXSHUVHGHGE\WKHKXPDQ
UDFH³µ:KDWVRUWRIDQHDUWKZRUPLVWKLV"¶VDLGRQH*LDQWWRDQRWKHUZKHQWKH\PHWDPDQDVWKH\ZDONHGµ7KHVHDUH
WKHHDUWKZRUPVWKDWZLOORQHGD\HDWXVXSEURWKHU¶DQVZHUHGWKHRWKHUDQGVRRQERWK*LDQWVOHIWWKDWSDUWRI
*HUPDQ\´³µ6HHZKDWSUHWW\SOD\WKLQJVPRWKHU¶FULHVWKH*LDQW¶VGDXJKWHUDVVKHXQWLHVKHUDSURQDQGVKRZVKHUD
SORXJKDQGKRUVHVDQGDSHDVDQWµ%DFNZLWKWKHPWKLVLQVWDQW¶FULHVWKHPRWKHULQZUDWKµDQGSXWWKHPGRZQDV
FDUHIXOO\DV\RXFDQIRUWKHVHSOD\WKLQJVFDQGRRXUUDFHJUHDWKDUPDQGZKHQWKHVHFRPHZHPXVWEXGJH¶³9HU\
QDWXUDOO\WKHSULPLWLYH7HXWRQSRVVHVVLQJDOUHDG\WKHFRQFHSWLRQRIQLJKWGHPRQVZRXOGDSSO\LWWRWKHVHPHQRIWKH
ZRRGVZKRPHYHQWRWKLVGD\KLVXQHGXFDWHGGHVFHQGDQWVEHOLHYHWREHVRUFHUHUVDEOHWRWXUQPHQLQWRZROYHV%XW
ZKDWHYHUFRQWULEXWLRQVKLVWRULFDOIDFWPD\KDYHDGGHGWRKLVFKDUDFWHUWKH7UROOLVRULJLQDOO\DFUHDWLRQRIP\WKRORJ\
OLNH3RO\SKHPRVZKRPKHUHVHPEOHVLQKLVXQFRXWKSHUVRQKLVFDQQLEDODSSHWLWHDQGKLVODFNRIZLW+LVUHDG\
JXOOLELOLW\LVVKRZQLQWKHVWRU\RI³%RRWVZKRDWHD0DWFKZLWKWKH7UROO´%RRWVWKHEURWKHURI&LQGHUHOODDQGWKH
FRXQWHUSDUWDOLNHRI-DFNWKH*LDQWNLOOHUDQGRI2G\VVHXVLVWKH\RXQJHVWRIWKUHHEURWKHUVZKRJRLQWRDIRUHVWWRFXW
ZRRG7KH7UROODSSHDUVDQGWKUHDWHQVWRNLOODQ\RQHZKRGDUHVWRPHGGOHZLWKKLVWLPEHU7KHHOGHUEURWKHUVIOHHEXW
%RRWVSXWVRQDEROGIDFH+HSXOOHGDFKHHVHRXWRIKLVVFULSDQGVTXHH]HGLWWLOOWKHZKH\EHJDQWRVSXUWRXW³+ROG
\RXUWRQJXH\RXGLUW\7UROO´VDLGKH³RU,¶OOVTXHH]H\RXDV,VTXHH]HWKLVVWRQH´6RWKH7UROOJUHZWLPLGDQGEHJJHG
WREHVSDUHG>@DQG%RRWVOHWKLPRIIRQFRQGLWLRQWKDWKHZRXOGKHZDOOGD\ZLWKKLP7KH\ZRUNHGWLOOQLJKWIDOO
DQGWKH7UROO¶VJLDQWVWUHQJWKDFFRPSOLVKHGZRQGHUV7KHQ%RRWVZHQWKRPHZLWKWKH7UROOKDYLQJDUUDQJHGWKDWKH
VKRXOGJHWWKHZDWHUZKLOHKLVKRVWPDGHWKHILUH:KHQWKH\UHDFKHGWKHKXWWKHUHZHUHWZRHQRUPRXVLURQSDLOVVR
KHDY\WKDWQRQHEXWD7UROOFRXOGOLIWWKHPEXW%RRWVZDVQRWWREHIULJKWHQHG³%DK´VDLGKH³'R\RXVXSSRVH,DP
JRLQJWRJHWZDWHULQWKRVHSDOWU\KDQGEDVLQV"+ROGRQWLOO,JRDQGJHWWKHVSULQJLWVHOI´³2GHDU´VDLGWKH7UROO³,¶G
UDWKHUQRWGR\RXPDNHWKHILUHDQG,¶OOJHWWKHZDWHU´7KHQZKHQWKHVRXSZDVPDGH%RRWVFKDOOHQJHGKLVQHZ
IULHQGWRDQHDWLQJPDWFKDQGW\LQJKLVVFULSLQIURQWRIKLPSURFHHGHGWRSRXUVRXSLQWRLWE\WKHODGOHIXO%\DQGE\
WKHJLDQWWKUHZGRZQKLVVSRRQLQGHVSDLUDQGRZQHGKLPVHOIFRQTXHUHG³1RQRGRQ¶WJLYHLWXS\HW´VDLG%RRWV
³MXVWFXWDKROHLQ\RXUVWRPDFKOLNHWKLVDQG\RXFDQHDWIRUHYHU´$QGVXLWLQJWKHDFWLRQWRWKHZRUGVKHULSSHGRSHQ
KLVVFULS6RWKHVLOO\7UROOFXWKLPVHOIRSHQDQGGLHGDQG%RRWVFDUULHGRIIDOOKLVJROGDQGVLOYHU
>@'DVHQW3RSXODU7DOHVIURPWKH1RUVH1R,,,DQG1R;/,,
>@6HH'DVHQW¶V,QWURGXFWLRQSF[[[L[&DPSEHOO7DOHVRIWKH:HVW+LJKODQGV9RO,9SDQG:LOOLDPV
,QGLDQ(SLF3RHWU\S
>@³$/HRSDUGZDVUHWXUQLQJKRPHIURPKXQWLQJRQRQHRFFDVLRQZKHQKHOLJKWHGRQWKHNUDDORID5DP1RZWKH
/HRSDUGKDGQHYHUVHHQD5DPEHIRUHDQGDFFRUGLQJO\DSSURDFKLQJVXEPLVVLYHO\KHVDLGµ*RRGGD\IULHQGZKDW
PD\\RXUQDPHEH"¶7KHRWKHULQKLVJUXIIYRLFHDQGVWULNLQJKLVEUHDVWZLWKKLVIRUHIRRWVDLGµ,DPD5DPZKRDUH
\RX"¶µ$/HRSDUG¶DQVZHUHGWKHRWKHUPRUHGHDGWKDQDOLYHDQGWKHQWDNLQJOHDYHRIWKH5DPKHUDQKRPHDVIDVWDV
KHFRXOG´%OHHN+RWWHQWRW)DEOHVS
2QFHWKHUHZDVD7UROOZKRVHQDPHZDV:LQGDQG:HDWKHUDQG6DLQW2ODIKLUHGKLPWREXLOGDFKXUFK,IWKHFKXUFK
ZHUHFRPSOHWHGZLWKLQDFHUWDLQVSHFLILHGWLPHWKH7UROOZDVWRJHWSRVVHVVLRQRI6DLQW2ODI7KHVDLQWWKHQSODQQHG
VXFKDVWXSHQGRXVHGLILFHWKDWKHWKRXJKWWKHJLDQWZRXOGEHIRUHYHUEXLOGLQJLWEXWWKHZRUNZHQWRQEULVNO\DQGDW
WKHDSSRLQWHGGD\QRWKLQJUHPDLQHGEXWWRILQLVKWKHSRLQWRIWKHVSLUH,QKLVFRQVWHUQDWLRQ2ODIUXVKHGDERXWXQWLOKH
SDVVHGE\WKH7UROO¶VGHQZKHQKHKHDUGWKHJLDQWHVVWHOOLQJKHUFKLOGUHQWKDWWKHLUIDWKHU:LQGDQG:HDWKHUZDV
ILQLVKLQJKLVFKXUFKDQGZRXOGEHKRPHWRPRUURZZLWK6DLQW2ODI6RWKHVDLQWUDQEDFNWRWKHFKXUFKDQGEDZOHG
RXW³+ROGRQ:LQGDQG:HDWKHU\RXUVSLUHLVFURRNHG´7KHQWKHJLDQWWXPEOHGGRZQIURPWKHURRIDQGEURNHLQWRD
WKRXVDQGSLHFHV$VLQWKHFDVHVRIWKH0DUDDQGWKHZHUHZROIWKHHQFKDQWPHQWZDVDWDQHQGDVVRRQDVWKHHQFKDQWHU
ZDVFDOOHGE\QDPH
7KHVH7UROOVOLNHWKH$UDELDQ(IUHHWVKDGDQXJO\KDELWRIFDUU\LQJRIIEHDXWLIXOSULQFHVVHV7KLVLVVWULFWO\LQNHHSLQJ
ZLWKWKHLUFKDUDFWHUDVQLJKWGHPRQVRU3DQLV,QWKHVWRULHVRI3XQFKNLQDQGWKH+HDUWOHVV*LDQWWKHQLJKWGHPRQ
FDUULHVRIIWKHGDZQPDLGHQDIWHUKDYLQJWXUQHGLQWRVWRQHKHUVRODUEUHWKUHQ%XW%RRWVRU,QGUDLQVHDUFKRIKLV
NLQVIRONE\DQGE\DUULYHVDWWKH7UROO¶VFDVWOHDQGWKHQWKHGDZQQ\PSKWUXHWRKHUILFNOHFKDUDFWHUFDMROHVWKH*LDQW
DQGHQDEOHV%RRWVWRGHVWUR\KLP,QWKHIDPRXVP\WKZKLFKVHUYHVDVWKHEDVLVIRUWKH9ROVXQJD6DJDDQGWKH
1LEHOXQJHQOLHGWKHGUDJRQ)DIQLUVWHDOVWKH9DON\ULH%U\QKLOGDQGNHHSVKHUVKXWXSLQDFDVWOHRQWKH*OLVWHQLQJ
+HDWKXQWLOVRPHFKDPSLRQVKDOOEHIRXQGSRZHUIXOHQRXJKWRUHVFXHKHU7KHFDVWOHLVDVKDUGWRHQWHUDVWKDWRIWKH
6OHHSLQJ%HDXW\EXW6LJXUGWKH1RUWKHUQ$FKLOOHXVULGLQJRQKLVGHDWKOHVVKRUVHDQGZLHOGLQJKLVUHVLVWOHVVVZRUG
*UDPIRUFHVKLVZD\LQVOD\V)DIQLUDQGUHFRYHUVWKH9DON\ULH
,QWKHSUHFHGLQJSDSHUWKH9DON\ULHVZHUHVKRZQWREHORQJWRWKHFODVVRIFORXGPDLGHQVDQGEHWZHHQWKHWDOHRI
6LJXUGDQGWKDWRI+HUFXOHVDQG&DFXVWKHUHLVQRGLIIHUHQFHVDYHWKDWWKHEULJKWVXQOLWFORXGVZKLFKDUHUHSUHVHQWHGLQ
WKHRQHDVFRZVDUHLQWKHRWKHUUHSUHVHQWHGDVPDLGHQV,QWKHP\WKRIWKH$UJRQDXWVWKH\UHDSSHDUDVWKH*ROGHQ
)OHHFHFDUULHGWRWKHIDUHDVWE\3KUL[RVDQG+HOOHZKRDUHWKHPVHOYHV1LEOXQJVRU³&KLOGUHQRIWKH0LVW´ 1HSKHOH 
DQGWKHUHJXDUGHGE\DGUDJRQ,QDOOWKHVHP\WKVDWUHDVXUHLVVWROHQE\DILHQGRIGDUNQHVVDQGUHFRYHUHGE\DKHURRI
OLJKWZKRVOD\VWKHGHPRQ$QG²UHPHPEHULQJZKDW6FULEHVDLGDERXWWKHIHZQHVVRIGUDPDWLFW\SHV²,EHOLHYHZH
DUHZDUUDQWHGLQDVVHUWLQJWKDWDOOWKHVWRULHVRIORYHO\ZRPHQKHOGLQERQGDJHE\PRQVWHUVDQGUHVFXHGE\KHURHVZKR
SHUIRUPZRQGHUIXOWDVNVVXFKDV'RQ4XL[RWHEXUQHGWRDFKLHYHDUHGHULYHGXOWLPDWHO\IURPVRODUP\WKVOLNHWKH
P\WKRI6LJXUGDQG%U\QKLOG,GRQRWPHDQWRVD\WKDWWKHVWRU\WHOOHUVZKREHJXLOHGWKHLUWLPHLQVWULQJLQJWRJHWKHU
WKHLQFLGHQWVZKLFKPDNHXSWKHVHOHJHQGVZHUHFRQVFLRXVRIWKHLUVRODUFKDUDFWHU7KH\GLGQRWJRWRZRUNZLWK
PDOLFHSUHSHQVHWRZHDYHDOOHJRULHVDQGDSRORJXHV7KH*UHHNVZKRILUVWWROGWKHVWRU\RI3HUVHXVDQG$QGURPHGDWKH
$UDELDQVZKRGHYLVHGWKHWDOHRI&RGDGDGDQGKLVEUHWKUHQWKH)OHPLQJVZKROLVWHQHGRYHUWKHLUEHHUPXJVWRWKH
DGYHQWXUHVRI&XORWWH9HUWHZHUHQRWWKLQNLQJRIVXQJRGVRUGDZQPDLGHQVRUQLJKWGHPRQVDQGQRWKHRU\RI
P\WKRORJ\FDQEHVRXQGZKLFKLPSOLHVVXFKDQH[WUDYDJDQFH0RVWRIWKHVHVWRULHVKDYHOLYHGRQWKHOLSVRIWKH
FRPPRQSHRSOHDQGLOOLWHUDWHSHUVRQVDUHQRWLQWKHKDELWRIDOOHJRUL]LQJLQWKHVW\OHRIPHGLDHYDOPRQNVRUUDEELQLFDO
FRPPHQWDWRUV%XWZKDWKDVEHHQDPSO\GHPRQVWUDWHGLVWKDWWKHVXQDQGWKHFORXGVWKHOLJKWDQGWKHGDUNQHVVZHUH
RQFHVXSSRVHGWREHDFWXDWHGE\ZLOOVDQDORJRXVWRWKHKXPDQZLOOWKDWWKH\ZHUHSHUVRQLILHGDQGZRUVKLSSHGRU
SURSLWLDWHGE\VDFULILFHDQGWKDWWKHLUGRLQJVZHUHGHVFULEHGLQODQJXDJHZKLFKDSSOLHGVRZHOOWRWKHGHHGVRIKXPDQ
RUTXDVLKXPDQEHLQJVWKDWLQFRXUVHRIWLPHLWVSULPLWLYHSXUSRUWIDGHGIURPUHFROOHFWLRQ1RFRPSHWHQWVFKRODUQRZ
GRXEWVWKDWWKHP\WKVRIWKH9HGDDQGWKH(GGDRULJLQDWHGLQWKLVZD\IRUSKLORORJ\LWVHOIVKRZVWKDWWKHQDPHV
HPSOR\HGLQWKHPDUHWKHQDPHVRIWKHJUHDWSKHQRPHQDRIQDWXUH$QGZKHQRQFHDIHZVWULNLQJVWRULHVKDGWKXV
DULVHQZKHQRQFHLWKDGEHHQWROGKRZ,QGUDVPRWHWKH3DQLVDQGKRZ6LJXUGUHVFXHG%U\QKLOGDQGKRZ2G\VVHXV
EOLQGHGWKH.\NORSVWKHQFHUWDLQP\WKLFRUGUDPDWLFW\SHVKDGEHHQFDOOHGLQWRH[LVWHQFHDQGWRWKHVHW\SHV
SUHVHUYHGLQWKHSRSXODULPDJLQDWLRQIXWXUHVWRULHVZRXOGLQHYLWDEO\FRQIRUP:HQHHGWKHUHIRUHKDYHQRKHVLWDWLRQ
LQDGPLWWLQJDFRPPRQRULJLQIRUWKHYDQTXLVKHG3DQLVDQGWKHRXWZLWWHG7UROORU'HYLOZHPD\VHFXUHO\FRPSDUHWKH
OHJHQGVRI6W*HRUJHDQG-DFNWKH*LDQWNLOOHUZLWKWKHP\WKRI,QGUDVOD\LQJ9ULWUDZHPD\VHHLQWKHLQYLQFLEOH
6LJXUGWKHSURWRW\SHRIPDQ\DGRXJKW\NQLJKWHUUDQWRIURPDQFHDQGZHPD\OHDUQDQHZWKHOHVVRQWDXJKWZLWKIUHVK
HPSKDVLVE\PRGHUQVFKRODUVKLSWKDWLQWKHGHHSHVWVHQVHWKHUHLVQRWKLQJQHZXQGHUWKHVXQ
,DPWKHPRUHH[SOLFLWRQWKLVSRLQWEHFDXVHLWVHHPVWRPHWKDWWKHXQJXDUGHGODQJXDJHRIPDQ\VWXGHQWVRI
P\WKRORJ\LVOLDEOHWRJLYHULVHWRPLVDSSUHKHQVLRQVDQGWRGLVFUHGLWERWKWKHPHWKRGZKLFKWKH\HPSOR\DQGWKH
UHVXOWVZKLFKWKH\KDYHREWDLQHG,IZHZHUHWRJLYHIXOOZHLJKWWRWKHVWDWHPHQWVZKLFKDUHVRPHWLPHVPDGHZH
VKRXOGSHUIRUFHEHOLHYHWKDWSULPLWLYHPHQKDGQRWKLQJWRGREXWWRSRQGHUDERXWWKHVXQDQGWKHFORXGVDQGWRZRUU\
WKHPVHOYHVRYHUWKHGLVDSSHDUDQFHRIGD\OLJKW%XWWKHUHLVQRWKLQJLQWKHVFLHQWLILFLQWHUSUHWDWLRQRIP\WKVZKLFK
REOLJHVXVWRJRDQ\VXFKOHQJWK,GRQRWVXSSRVHWKDWDQ\DQFLHQW$U\DQSRVVHVVHGRIJRRGGLJHVWLYHSRZHUVDQG
HQGRZHGZLWKVRXQGFRPPRQVHQVHHYHUOD\DZDNHKDOIWKHQLJKWZRQGHULQJZKHWKHUWKHVXQZRXOGFRPHEDFN
DJDLQ>@7KHFKLOGDQGWKHVDYDJHEHOLHYHRIQHFHVVLW\WKDWWKHIXWXUHZLOOUHVHPEOHWKHSDVWDQGLWLVRQO\
SKLORVRSK\ZKLFKUDLVHVGRXEWVRQWKHVXEMHFW>@7KHSUHGRPLQDQFHRIVRODUOHJHQGVLQPRVWV\VWHPVRIP\WKRORJ\
LVQRWGXHWRWKHODFNRI³WKDW7LWDQLFDVVXUDQFHZLWKZKLFKZHVD\WKHVXQ0867ULVH´>@QRUDJDLQWRWKHIDFWWKDW
WKHSKHQRPHQDRIGD\DQGQLJKWDUHWKHPRVWVWULNLQJSKHQRPHQDLQQDWXUH(FOLSVHVDQGHDUWKTXDNHVDQGIORRGVDUH
SKHQRPHQDRIWKHPRVWWHUULEOHDQGDVWRXQGLQJNLQGDQGWKH\KDYHDOOJHQHUDWHGP\WKV\HWWKHLUFRQWULEXWLRQVWRIRON
ORUHDUHVFDQW\FRPSDUHGZLWKWKRVHIXUQLVKHGE\WKHVWULIHEHWZHHQWKHGD\JRGDQGKLVHQHPLHV7KHVXQP\WKVKDYH
EHHQVRSUROLILFEHFDXVHWKHGUDPDWLFW\SHVWRZKLFKWKH\KDYHJLYHQULVHDUHRIVXUSDVVLQJKXPDQLQWHUHVW7KHGUDJRQ
ZKRVZDOORZVWKHVXQLVQRGRXEWDIHDUIXOSHUVRQDJHEXWWKHKHURZKRWRLOVIRURWKHUVZKRVOD\VK\GUDKHDGHG
PRQVWHUVDQGGULHVWKHWHDUVRIIDLUKDLUHGGDPVHOVDQGDFKLHYHVVXFFHVVLQVSLWHRILQFUHGLEOHREVWDFOHVLVDEHLQJ
ZLWKZKRPZHFDQDOOV\PSDWKL]HDQGRIZKRPZHQHYHUZHDU\RIKHDULQJ
>@,DJUHHPRVWKHDUWLO\ZLWK0U0DKDII\¶VUHPDUNV3UROHJRPHQDWR$QFLHQW+LVWRU\S
>@6LU*HRUJH*UH\RQFHWROGVRPH$XVWUDOLDQQDWLYHVDERXWWKHFRXQWULHVZLWKLQWKHDUFWLFFLUFOHZKHUHGXULQJSDUW
RIWKH\HDUWKHVXQQHYHUVHWV³7KHLUDVWRQLVKPHQWQRZNQHZQRERXQGVµ$KWKDWPXVWEHDQRWKHUVXQQRWWKHVDPH
DVWKHRQHZHVHHKHUH¶VDLGDQROGPDQDQGLQVSLWHRIDOOP\DUJXPHQWVWRWKHFRQWUDU\WKHRWKHUVDGRSWHGWKLV
RSLQLRQ´*UH\¶V-RXUQDOV,FLWHGLQ7\ORU(DUO\+LVWRU\RI0DQNLQGS
>@0D[0XOOHU&KLSV,,
:LWKPDQ\RIWKHVHOHJHQGVZKLFKSUHVHQWWKHP\WKRIOLJKWDQGGDUNQHVVLQLWVPRVWDWWUDFWLYHIRUPWKHUHDGHULV
DOUHDG\DFTXDLQWHGDQGLWLVQHHGOHVVWRUHWDLOVWRULHVZKLFKKDYHEHHQWROGRYHUDQGRYHUDJDLQLQERRNVZKLFKHYHU\
RQHLVSUHVXPHGWRKDYHUHDG,ZLOOFRQWHQWP\VHOIZLWKDZHLUG,ULVKOHJHQGQDUUDWHGE\0U3DWULFN.HQQHG\>@LQ
ZKLFKZHKHUHDQGWKHUHFDWFKJOLPSVHVRIWKHSULPLWLYHP\WKLFDOV\PEROVDVIUDJPHQWVRIJROGDUHVHHQJOHDPLQJ
WKURXJKWKHFU\VWDORITXDUW]
>@)LFWLRQVRIWKH,ULVK&HOWVSS
/RQJEHIRUHWKH'DQHVHYHUFDPHWR,UHODQGWKHUHGLHGDW0XVNHUU\D6FXOORJHRUFRXQWU\IDUPHUZKRE\GLQWRIKDUG
ZRUNDQGFORVHHFRQRP\KDGDPDVVHGHQRUPRXVZHDOWK+LVRQO\VRQGLGQRWUHVHPEOHKLP:KHQWKH\RXQJ6FXOORJH
ORRNHGDERXWWKHKRXVHWKHGD\DIWHUKLVIDWKHU¶VGHDWKDQGVDZWKHELJFKHVWVIXOORIJROGDQGVLOYHUDQGWKH
FXSERDUGVVKLQLQJZLWKSLOHVRIVRYHUHLJQVDQGWKHROGVWRFNLQJVVWXIIHGZLWKODUJHDQGVPDOOFRLQKHVDLGWRKLPVHOI
³%HGDGKRZVKDOO,HYHUEHDEOHWRVSHQGWKHOLNHVR¶WKDW´$QGVRKHGUDQNDQGJDPEOHGDQGZDVWHGKLVWLPHLQ
KXQWLQJDQGKRUVHUDFLQJXQWLODIWHUDZKLOHKHIRXQGWKHFKHVWVHPSW\DQGWKHFXSERDUGVSRYHUW\VWULFNHQDQGWKH
VWRFNLQJVOHDQDQGSHQQLOHVV7KHQKHPRUWJDJHGKLVIDUPKRXVHDQGJDPEOHGDZD\DOOWKHPRQH\KHJRWIRULWDQG
WKHQKHEHWKRXJKWKLPWKDWDIHZKXQGUHGSRXQGVPLJKWEHUDLVHGRQKLVPLOO%XWZKHQKHZHQWWRORRNDWLWKHIRXQG
³WKHGDPEURNHQDQGVFDUFHO\DWKLPEOHIXORIZDWHULQWKHPLOOUDFHDQGWKHZKHHOURWWHQDQGWKHWKDWFKRIWKHKRXVH
DOOJRQHDQGWKHXSSHUPLOOVWRQHO\LQJIODWRQWKHORZHURQHDQGDFRDWRIGXVWDQGPRXOGRYHUHYHU\WKLQJ´6RKH
PDGHXSKLVPLQGWRERUURZDKRUVHDQGWDNHRQHPRUHKXQWWRPRUURZDQGWKHQUHIRUPKLVKDELWV
$VKHZDVUHWXUQLQJODWHLQWKHHYHQLQJIURPWKLVIDUHZHOOKXQWSDVVLQJWKURXJKDORQHO\JOHQKHFDPHXSRQDQROGPDQ
SOD\LQJEDFNJDPPRQEHWWLQJRQKLVOHIWKDQGDJDLQVWKLVULJKWDQGFU\LQJDQGFXUVLQJEHFDXVHWKHULJKW:28/'ZLQ
³&RPHDQGEHWZLWKPH´VDLGKHWR6FXOORJH³)DLWK,KDYHEXWDVL[SHQFHLQWKHZRUOG´ZDVWKHUHSO\³EXWLI\RX
OLNH,¶OOZDJHUWKDWRQWKHULJKW´³'RQH´VDLGWKHROGPDQZKRZDVD'UXLG³LI\RXZLQ,¶OOJLYH\RXDKXQGUHG
JXLQHDV´6RWKHJDPHZDVSOD\HGDQGWKHROGPDQZKRVHULJKWKDQGZDVDOZD\VWKHZLQQHUSDLGRYHUWKHJXLQHDV
DQGWROG6FXOORJHWRJRWRWKH'HYLOZLWKWKHP
,QVWHDGRIIROORZLQJWKLVELWRIDGYLFHKRZHYHUWKH\RXQJIDUPHUZHQWKRPHDQGEHJDQWRSD\KLVGHEWVDQGQH[W
ZHHNKHZHQWWRWKHJOHQDQGZRQDQRWKHUJDPHDQGPDGHWKH'UXLGUHEXLOGKLVPLOO6R6FXOORJHEHFDPHSURVSHURXV
DJDLQDQGE\DQGE\KHWULHGKLVOXFNDWKLUGWLPHDQGZRQDJDPHSOD\HGIRUDEHDXWLIXOZLIH7KH'UXLGVHQWKHUWR
KLVKRXVHWKHQH[WPRUQLQJEHIRUHKHZDVRXWRIEHGDQGKLVVHUYDQWVFDPHNQRFNLQJDWWKHGRRUDQGFU\LQJ³:DNH
XSZDNHXS0DVWHU6FXOORJHWKHUH¶VD\RXQJODG\KHUHWRVHH\RX´³%HGDGLW¶VWKHYDQLWKHH>@KHUVHOI´VDLG
6FXOORJHDQGJHWWLQJXSLQDKXUU\KHVSHQWWKUHHTXDUWHUVRIDQKRXULQGUHVVLQJKLPVHOI$WODVWKHZHQWGRZQVWDLUV
DQGWKHUHRQWKHVRIDZDVWKHSUHWWLHVWODG\HYHUVHHQLQ,UHODQG1DWXUDOO\6FXOORJH¶VKHDUWEHDWIDVWDQGKLVYRLFH
WUHPEOHGDVKHEHJJHGWKHODG\¶VSDUGRQIRUWKLV'UXLGLFVW\OHRIZRRLQJDQGEHVRXJKWKHUQRWWRIHHOREOLJHGWRVWD\
ZLWKKLPXQOHVVVKHUHDOO\OLNHGKLP%XWWKH\RXQJODG\ZKRZDVDNLQJ¶VGDXJKWHUIURPDIDUFRXQWU\ZDV
ZRQGURXVO\FKDUPHGZLWKWKHKDQGVRPHIDUPHUDQGVRZHOOGLGWKH\JHWDORQJWKDWWKHSULHVWZDVVHQWIRUZLWKRXW
IXUWKHUGHOD\DQGWKH\ZHUHPDUULHGEHIRUHVXQGRZQ6DELQDZDVWKHYDQLWKHH¶VQDPHDQGVKHZDUQHGKHUKXVEDQGWR
KDYHQRPRUHGHDOLQJVZLWK/DVVD%XDLFKWWKHROGPDQRIWKHJOHQ6RIRUDZKLOHDOOZHQWKDSSLO\DQGWKH'UXLGLF
EULGHZDVDVJRRGDVVKHZDVEHDXWLIXO%XWE\DQGE\6FXOORJHEHJDQWRWKLQNKHZDVQRWHDUQLQJPRQH\IDVWHQRXJK
+HFRXOGQRWEHDUWRVHHKLVZLIH¶VZKLWHKDQGVVRLOHGZLWKZRUNDQGWKRXJKWLWZRXOGEHDILQHWKLQJLIKHFRXOGRQO\
DIIRUGWRNHHSDIHZPRUHVHUYDQWVDQGGULYHDERXWZLWK6DELQDLQDQHOHJDQWFDUULDJHDQGVHHKHUFORWKHGLQVLONDQG
DGRUQHGZLWKMHZHOV
>@$FRUUXSWLRQRI*DHOLFEKDQDWHDLJK³ODG\RIWKHKRXVH´
³,ZLOOSOD\RQHPRUHJDPHDQGVHWWKHVWDNHVKLJK´VDLG6FXOORJHWRKLPVHOIRQHHYHQLQJDVKHVDWSRQGHULQJRYHU
WKHVHWKLQJVDQGVRZLWKRXWFRQVXOWLQJ6DELQDKHVWROHDZD\WRWKHJOHQDQGSOD\HGDJDPHIRUWHQWKRXVDQGJXLQHDV
%XWWKHHYLO'UXLGZDVQRZUHDG\WRSRXQFHRQKLVSUH\DQGKHGLGQRWSOD\DVRIROG6FXOORJHEURNHLQWRDFROGVZHDW
ZLWKDJRQ\DQGWHUURUDVKHVDZWKHOHIWKDQGZLQ7KHQWKHIDFHRI/DVVD%XDLFKWJUHZGDUNDQGVWHUQDQGKHODLGRQ
6FXOORJHWKHFXUVHZKLFKLVODLGXSRQWKHVRODUKHURLQPLVIRUWXQHWKDWKHVKRXOGQHYHUVOHHSWZLFHXQGHUWKHVDPH
URRIRUDVFHQGWKHFRXFKRIWKHGDZQQ\PSKKLVZLIHXQWLOKHVKRXOGKDYHSURFXUHGDQGEURXJKWWRKLPWKHVZRUGRI
OLJKW:KHQ6FXOORJHUHDFKHGKRPHPRUHGHDGWKDQDOLYHKHVDZWKDWKLVZLIHNQHZDOO%LWWHUO\WKH\ZHSWWRJHWKHU
EXWVKHWROGKLPWKDWZLWKFRXUDJHDOOPLJKWEHVHWULJKW6KHJDYHKLPD'UXLGLFKRUVHZKLFKERUHKLPVZLIWO\RYHU
ODQGDQGVHDOLNHWKHHQFKDQWHGVWHHGRIWKH$UDELDQ1LJKWVXQWLOKHUHDFKHGWKHFDVWOHRIKLVZLIH¶VIDWKHUZKRDV
6FXOORJHQRZOHDUQHGZDVDJRRG'UXLGWKHEURWKHURIWKHHYLO/DVVD%XDLFKW7KLVJRRG'UXLGWROGKLPWKDWWKHVZRUG
RIOLJKWZDVNHSWE\DWKLUGEURWKHUWKHSRZHUIXOPDJLFLDQ)LDFK2¶'XGDZKRGZHOWLQDQHQFKDQWHGFDVWOHZKLFK
PDQ\EUDYHKHURHVKDGWULHGWRHQWHUEXWWKHGDUNVRUFHUHUKDGVODLQWKHPDOO7KUHHKLJKZDOOVVXUURXQGHGWKHFDVWOH
DQGPDQ\KDGVFDOHGWKHILUVWRIWKHVHEXWQRQHKDGHYHUUHWXUQHGDOLYH%XW6FXOORJHZDVQRWWREHGDXQWHGDQG
WDNLQJIURPKLVIDWKHULQODZDEODFNVWHHGKHVHWRXWIRUWKHIRUWUHVVRI)LDFK2¶'XGD2YHUWKHILUVWKLJKZDOOQLPEO\
OHDSHGWKHPDJLFKRUVHDQG6FXOORJHFDOOHGDORXGRQWKH'UXLGWRFRPHRXWDQGVXUUHQGHUKLVVZRUG7KHQFDPHRXWD
WDOOGDUNPDQZLWKFRDOEODFNH\HVDQGKDLUDQGPHODQFKRO\YLVDJHDQGPDGHDIXULRXVVZHHSDW6FXOORJHZLWKWKH
IODPLQJEODGH%XWWKH'UXLGLFEHDVWVSUDQJEDFNRYHUWKHZDOOLQWKHWZLQNOLQJRIDQH\HDQGUHVFXHGKLVULGHUOHDYLQJ
KRZHYHUKLVWDLOEHKLQGLQWKHFRXUW\DUG7KHQ6FXOORJHUHWXUQHGLQWULXPSKWRKLVIDWKHULQODZ¶VSDODFHDQGWKH
QLJKWZDVVSHQWLQIHDVWLQJDQGUHYHOU\
1H[WGD\6FXOORJHURGHRXWRQDZKLWHKRUVHDQGZKHQKHJRWWR)LDFK¶VFDVWOHKHVDZWKHILUVWZDOOO\LQJLQUXEELVK
+HOHDSHGWKHVHFRQGDQGWKHVDPHVFHQHRFFXUUHGDVWKHGD\EHIRUHVDYHWKDWWKHKRUVHHVFDSHGXQKDUPHG
7KHWKLUGGD\6FXOORJHZHQWRXWRQIRRWZLWKDKDUSOLNHWKDWRI2USKHXVLQKLVKDQGDQGDVKHVZHSWLWVVWULQJVWKH
JUDVVEHQWWROLVWHQDQGWKHWUHHVERZHGWKHLUKHDGV7KHFDVWOHZDOOVDOOOD\LQUXLQVDQG6FXOORJHPDGHKLVZD\
XQKLQGHUHGWRWKHXSSHUURRPZKHUH)LDFKOD\LQ'UXLGLFVOXPEHUOXOOHGE\WKHKDUS+HVHL]HGWKHVZRUGRIOLJKW
ZKLFKZDVKXQJE\WKHFKLPQH\VKHDWKHGLQDGDUNVFDEEDUGDQGPDNLQJWKHEHVWRIKLVZD\EDFNWRWKHJRRGNLQJ¶V
SDODFHPRXQWHGKLVZLIH¶VVWHHGDQGVFRXUHGRYHUODQGDQGVHDXQWLOKHIRXQGKLPVHOILQWKHJORRP\JOHQZKHUH/DVVD
%XDLFKWZDVVWLOOFU\LQJDQGFXUVLQJDQGEHWWLQJRQKLVOHIWKDQGDJDLQVWKLVULJKW
³+HUHWUHDFKHURXVILHQGWDNH\RXUVZRUGRIOLJKW´VKRXWHG6FXOORJHLQWRQHVRIWKXQGHUDQGDVKHGUHZLWIURPLWV
VKHDWKWKHZKROHYDOOH\ZDVOLJKWHGXSDVZLWKWKHPRUQLQJVXQDQGQH[WPRPHQWWKHKHDGRIWKHZUHWFKHG'UXLGZDV
O\LQJDWKLVIHHWDQGKLVVZHHWZLIHZKRKDGFRPHWRPHHWKLPZDVODXJKLQJDQGFU\LQJLQKLVDUPV1RYHPEHU

90<7+62)7+(%$5%$5,&:25/'
7+(WKHRU\RIP\WKRORJ\VHWIRUWKLQWKHIRXUSUHFHGLQJSDSHUVDQGLOOXVWUDWHGE\WKHH[DPLQDWLRQRIQXPHURXVP\WKV
UHODWLQJWRWKHOLJKWQLQJWKHVWRUPZLQGWKHFORXGVDQGWKHVXQOLJKWZDVRULJLQDOO\IUDPHGZLWKUHIHUHQFHVROHO\WRWKH
P\WKLFDQGOHJHQGDU\ORUHRIWKH$U\DQZRUOG7KHSKRQHWLFLGHQWLW\RIWKHQDPHVRIPDQ\:HVWHUQJRGVDQGKHURHV
ZLWKWKHQDPHVRIWKRVH9HGLFGLYLQLWLHVZKLFKDUHREYLRXVO\WKHSHUVRQLILFDWLRQVRIQDWXUDOSKHQRPHQDVXJJHVWHGWKH
WKHRU\ZKLFKSKLORVRSKLFDOFRQVLGHUDWLRQVKDGDOUHDG\IRUHVKDGRZHGLQWKHZRUNVRI+XPHDQG&RPWHDQGZKLFKWKH
H[KDXVWLYHDQDO\VLVRI*UHHN+LQGX.HOWLFDQG7HXWRQLFOHJHQGVKDVDPSO\FRQILUPHG/HWXVQRZEHIRUHSURFHHGLQJ
WRWKHFRQVLGHUDWLRQRIEDUEDULFIRONORUHEULHIO\UHFDSLWXODWHWKHUHVXOWVREWDLQHGE\PRGHUQVFKRODUVKLSZRUNLQJ
VWULFWO\ZLWKLQWKHOLPLWVRIWKH$U\DQGRPDLQ
,QWKHILUVWSODFHLWKDVEHHQSURYHGRQFHIRUDOOWKDWWKHODQJXDJHVVSRNHQE\WKH+LQGXV3HUVLDQV*UHHNV5RPDQV
.HOWV6ODYHVDQG7HXWRQVDUHDOOGHVFHQGHGIURPDVLQJOHDQFHVWUDOODQJXDJHWKH2OG$U\DQLQWKHVDPHVHQVHWKDW
)UHQFK,WDOLDQDQG6SDQLVKDUHGHVFHQGHGIURPWKH/DWLQ$QGIURPWKLVXQGLVSXWHGIDFWLWLVDQLQHYLWDEOHLQIHUHQFH
WKDWWKHVHYDULRXVUDFHVFRQWDLQDORQJZLWKRWKHUHOHPHQWVDUDFHHOHPHQWLQFRPPRQGXHWRWKHLU$U\DQSHGLJUHH
7KDWWKH,QGR(XURSHDQUDFHVDUHZKROO\$U\DQLVYHU\LPSUREDEOHIRULQHYHU\FDVHWKHFRXQWULHVRYHUUXQE\WKHP
ZHUHRFFXSLHGE\LQIHULRUUDFHVZKRVHEORRGPXVWKDYHPLQJOHGLQYDU\LQJGHJUHHVZLWKWKDWRIWKHLUFRQTXHURUVEXW
WKDWHYHU\,QGR(XURSHDQSHRSOHLVLQJUHDWSDUWGHVFHQGHGIURPDFRPPRQ$U\DQVWRFNLVQRWRSHQWRTXHVWLRQ
,QWKHVHFRQGSODFHDORQJZLWKDFRPPRQIXQGRIPRUDODQGUHOLJLRXVLGHDVDQGRIOHJDODQGFHUHPRQLDOREVHUYDQFHV
ZHILQGWKHVHNLQGUHGSHRSOHVSRVVHVVHGRIDFRPPRQIXQGRIP\WKVVXSHUVWLWLRQVSURYHUEVSRSXODUSRHWU\DQG
KRXVHKROGOHJHQGV7KH+LQGXPRWKHUDPXVHVKHUFKLOGZLWKIDLU\WDOHVZKLFKRIWHQFRUUHVSRQGHYHQLQPLQRU
LQFLGHQWVZLWKVWRULHVLQ6FRWWLVKRU6FDQGLQDYLDQQXUVHULHVDQGVKHWHOOVWKHPLQZRUGVZKLFKDUHSKRQHWLFDOO\DNLQWR
ZRUGVLQ6ZHGLVKDQG*DHOLF1RGRXEWPDQ\RIWKHVHVWRULHVPLJKWKDYHEHHQGHYLVHGLQDGR]HQGLIIHUHQWSODFHV
LQGHSHQGHQWO\RIHDFKRWKHUDQGQRGRXEWPDQ\RIWKHPKDYHEHHQWUDQVPLWWHGODWHUDOO\IURPRQHSHRSOHWRDQRWKHU
EXWDFDUHIXOH[DPLQDWLRQVKRZVWKDWVXFKFDQQRWKDYHEHHQWKHFDVHZLWKWKHJUHDWPDMRULW\RIOHJHQGVDQGEHOLHIV7KH
DJUHHPHQWEHWZHHQWZRVXFKVWRULHVIRULQVWDQFHDVWKRVHRI)DLWKIXO-RKQDQG5DPDDQG/X[PDQLVVRFORVHDVWR
PDNHLWLQFUHGLEOHWKDWWKH\VKRXOGKDYHEHHQLQGHSHQGHQWO\IDEULFDWHGZKLOHWKHSRLQWVRIGLIIHUHQFHDUHVRLPSRUWDQW
DVWRPDNHLWH[WUHPHO\LPSUREDEOHWKDWWKHRQHZDVHYHUFRSLHGIURPWKHRWKHU%HVLGHVZKLFKWKHHVVHQWLDOLGHQWLW\RI
VXFKP\WKVDVWKRVHRI6LJXUGDQG7KHVHXVRURI+HOHQDDQG6DUDPDFDUULHVXVEDFNKLVWRULFDOO\WRDWLPHZKHQWKH
VFDWWHUHG,QGR(XURSHDQWULEHVKDGQRW\HWEHJXQWRKROGFRPPHUFLDODQGLQWHOOHFWXDOLQWHUFRXUVHZLWKHDFKRWKHUDQG
FRQVHTXHQWO\FRXOGQRWKDYHLQWHUFKDQJHGWKHLUHSLFPDWHULDOVRUWKHLUKRXVHKROGVWRULHV:HDUHWKHUHIRUHGULYHQWRWKH
FRQFOXVLRQ²ZKLFKVWDUWOLQJDVLWPD\VHHPLVDIWHUDOOWKHPRVWQDWXUDODQGSODXVLEOHRQHWKDWFDQEHVWDWHG²WKDWWKH
$U\DQQDWLRQVZKLFKKDYHLQKHULWHGIURPDFRPPRQDQFHVWUDOVWRFNWKHLUODQJXDJHVDQGWKHLUFXVWRPVKDYHLQKHULWHG
DOVRIURPWKHVDPHFRPPRQRULJLQDOWKHLUILUHVLGHOHJHQGV7KH\KDYHSUHVHUYHG&LQGHUHOODDQG3XQFKNLQMXVWDVWKH\
KDYHSUHVHUYHGWKHZRUGVIRUIDWKHUDQGPRWKHUWHQDQGWZHQW\DQGWKHIRUPHUFDVHWKRXJKPRUHLPSRVLQJWRWKH
LPDJLQDWLRQLVVFLHQWLILFDOO\QROHVVLQWHOOLJLEOHWKDQWKHODWWHU
7KLUGO\LWKDVEHHQVKRZQWKDWWKHVHYHQHUDEOHWDOHVPD\EHJURXSHGLQDIHZSUHWW\ZHOOGHILQHGFODVVHVDQGWKDWWKH
DUFKHW\SDOP\WKRIHDFKFODVV²WKHSULPLWLYHVWRU\LQFRQIRUPLW\WRZKLFKFRXQWOHVVVXEVHTXHQWWDOHVKDYHEHHQ
JHQHUDWHG²ZDVRULJLQDOO\DPHUHGHVFULSWLRQRISK\VLFDOSKHQRPHQDFRXFKHGLQWKHSRHWLFGLFWLRQRIDQDJHZKHQ
HYHU\WKLQJZDVSHUVRQLILHGEHFDXVHDOOQDWXUDOSKHQRPHQDZHUHVXSSRVHGWREHGXHWRWKHGLUHFWZRUNLQJVRIDYROLWLRQ
OLNHWKDWRIZKLFKPHQZHUHFRQVFLRXVZLWKLQWKHPVHOYHV7KXVZHDUHOHGWRWKHVWULNLQJFRQFOXVLRQWKDWP\WKRORJ\
KDVKDGDFRPPRQURRWERWKZLWKVFLHQFHDQGZLWKUHOLJLRXVSKLORVRSK\7KHP\WKRI,QGUDFRQTXHULQJ9ULWUDZDVRQH
RIWKHWKHRUHPVRISULPLWLYH$U\DQVFLHQFHLWZDVDSURYLVLRQDOH[SODQDWLRQRIWKHWKXQGHUVWRUPVDWLVIDFWRU\HQRXJK
XQWLOH[WHQGHGREVHUYDWLRQDQGUHIOHFWLRQVXSSOLHGDEHWWHURQH,WDOVRFRQWDLQHGWKHJHUPVRIDWKHRORJ\IRUWKHOLIH
JLYLQJVRODUOLJKWIXUQLVKHGDQLPSRUWDQWSDUWRIWKHSULPHYDOFRQFHSWLRQRIGHLW\$QGILQDOO\LWEHFDPHWKHIUXLWIXO
SDUHQWRIFRXQWOHVVP\WKVZKHWKHUHPERGLHGLQWKHVWDWHO\HSLFVRI+RPHUDQGWKHEDUGVRIWKH1LEHOXQJHQOLHGRULQ
WKHKXPEOHUOHJHQGVRI6W*HRUJHDQG:LOOLDP7HOODQGWKHXELTXLWRXV%RRWV
6XFKLVWKHWKHRU\ZKLFKZDVVXJJHVWHGKDOIDFHQWXU\DJRE\WKHUHVHDUFKHVRI-DFRE*ULPPDQGZKLFKVRIDUDV
FRQFHUQVWKHP\WKRORJ\RIWKH$U\DQUDFHLVQRZYLFWRULRXVDORQJWKHZKROHOLQH,WUHPDLQVIRUXVWRWHVWWKH
XQLYHUVDOLW\RIWKHJHQHUDOSULQFLSOHVXSRQZKLFKLWLVIRXQGHGE\DEULHIDQDO\VLVRIVXQGU\OHJHQGVDQGVXSHUVWLWLRQV
RIWKHEDUEDULFZRUOG6LQFHWKHIHWLFKLVWLFKDELWRIH[SODLQLQJWKHRXWZDUGSKHQRPHQDRIQDWXUHDIWHUWKHDQDORJ\RIWKH
LQZDUGSKHQRPHQDRIFRQVFLRXVLQWHOOLJHQFHLVQRWDKDELWSHFXOLDUWRRXU$U\DQDQFHVWRUVEXWLVDVSV\FKRORJ\VKRZV
WKHLQHYLWDEOHUHVXOWRIWKHFRQGLWLRQVXQGHUZKLFKXQFLYLOL]HGWKLQNLQJSURFHHGVZHPD\H[SHFWWRILQGWKHEDUEDULF
PLQGSHUVRQLI\LQJWKHSRZHUVRIQDWXUHDQGPDNLQJP\WKVDERXWWKHLURSHUDWLRQVWKHZKROHZRUOGRYHU$QGZHQHHG
QRWEHVXUSULVHGLIZHILQGLQWKHUHVXOWLQJP\WKRORJLFVWUXFWXUHVDVWURQJUHVHPEODQFHWRWKHIDPLOLDUFUHDWLRQVRIWKH
$U\DQLQWHOOLJHQFH,QSRLQWRIIDFWZHVKDOORIWHQEHFDOOHGXSRQWRQRWHVXFKUHVHPEODQFHDQGLWDFFRUGLQJO\
EHKRRYHVXVDWWKHRXWVHWWRLQTXLUHKRZIDUDVLPLODULW\EHWZHHQP\WKLFDOWDOHVVKDOOEHWDNHQDVHYLGHQFHRIDFRPPRQ
WUDGLWLRQDORULJLQDQGKRZIDULWPD\EHLQWHUSUHWHGDVGXHPHUHO\WRWKHVLPLODUZRUNLQJVRIWKHXQWUDLQHGLQWHOOLJHQFH
LQDOODJHVDQGFRXQWULHV
$QDORJLHVGUDZQIURPWKHFRPSDULVRQRIODQJXDJHVZLOOKHUHEHRIVHUYLFHWRXVLIXVHGGLVFUHHWO\RWKHUZLVHWKH\DUH
OLNHO\WREHZLOGHUIDUPRUHWKDQWRHQOLJKWHQXV$WKHRUHPZKLFK0D[0XOOHUKDVODLGGRZQIRURXUJXLGDQFHLQWKLV
NLQGRILQYHVWLJDWLRQIXUQLVKHVXVZLWKDQH[FHOOHQWH[DPSOHRIWKHWULFNVZKLFKDVXSHUILFLDODQDORJ\PD\SOD\HYHQ
ZLWKWKHWUDLQHGVFKRODUZKHQWHPSRUDULO\RIIKLVJXDUG$FWXDWHGE\DSUDLVHZRUWK\GHVLUHWRUDLVHWKHVWXG\RIP\WKV
WRVRPHWKLQJOLNHWKHKLJKOHYHORIVFLHQWLILFDFFXUDF\DOUHDG\DWWDLQHGE\WKHVWXG\RIZRUGV0D[0XOOHUHQGHDYRXUV
WRLQWURGXFHRQHRIWKHPRVWXVHIXOFDQRQVRISKLORORJ\LQWRDGHSDUWPHQWRILQTXLU\ZKHUHLWVLQWURGXFWLRQFRXOGRQO\
ZRUNWKHPRVWKRSHOHVVFRQIXVLRQ2QHRIWKHHDUOLHVWOHVVRQVWREHOHDUQHGE\WKHVFLHQWLILFVWXGHQWRIOLQJXLVWLFVLVWKH
XVHOHVVQHVVRIFRPSDULQJWRJHWKHUGLUHFWO\WKHZRUGVFRQWDLQHGLQGHULYDWLYHODQJXDJHV)RUH[DPSOH\RXPLJKWVHWWKH
(QJOLVKWZHOYHVLGHE\VLGHZLWKWKH/DWLQGXRGHFLPDQGWKHQVWDUHDWWKHWZRZRUGVWRDOOHWHUQLW\ZLWKRXWDQ\KRSHRI
UHDFKLQJDFRQFOXVLRQJRRGRUEDGDERXWHLWKHURIWKHPOHDVWRIDOOZRXOG\RXVXVSHFWWKDWWKH\DUHGHVFHQGHGIURP
WKHVDPHUDGLFDO%XWLI\RXWDNHHDFKZRUGE\LWVHOIDQGWUDFHLWEDFNWRLWVSULPLWLYHVKDSHH[SODLQLQJHYHU\FKDQJHRI
HYHU\OHWWHUDV\RXJR\RXZLOODWODVWUHDFKWKHROG$U\DQGYDGDNDQZKLFKLVWKHSDUHQWRIERWKWKHVHVWUDQJHO\
PHWDPRUSKRVHGZRUGV>@1RUZLOOLWGRRQWKHRWKHUKDQGWRWUXVWWRYHUEDOVLPLODULW\ZLWKRXWDKLVWRULFDOLQTXLU\
LQWRWKHRULJLQRIVXFKVLPLODULW\(YHQLQWKHVDPHODQJXDJHWZRZRUGVRITXLWHGLIIHUHQWRULJLQPD\JHWWKHLUFRUQHUV
UXEEHGRIIWLOOWKH\ORRNDVOLNHRQHDQRWKHUDVWZRSHEEOHV7KH)UHQFKZRUGVVRXULVD³PRXVH´DQGVRXULVD³VPLOH´
DUHVSHOOHGH[DFWO\DOLNHEXWWKHRQHFRPHVIURP/DWLQVRUH[DQGWKHRWKHUIURP/DWLQVXEULGHUH
>@)RUWKHDQDO\VLVRIWZHOYHVHHP\HVVD\RQ³7KH*HQHVLVRI/DQJXDJH´1RUWK$PHULFDQ5HYLHZ2FWREHU
S
1RZ0D[0XOOHUWHOOVXVWKDWWKLVSULQFLSOHZKLFKLVLQGLVSHQVDEOHLQWKHVWXG\RIZRUGVLVHTXDOO\LQGLVSHQVDEOHLQ
WKHVWXG\RIP\WKV>@7KDWLV\RXPXVWQRWUDVKO\SURQRXQFHWKH1RUVHVWRU\RIWKH+HDUWOHVV*LDQWLGHQWLFDOZLWK
WKH+LQGXVWRU\RI3XQFKNLQDOWKRXJKWKHWZRFRUUHVSRQGLQHYHU\HVVHQWLDOLQFLGHQW,QERWKOHJHQGVDPDJLFLDQWXUQV
VHYHUDOPHPEHUVRIWKHVDPHIDPLO\LQWRVWRQHWKH\RXQJHVWPHPEHURIWKHIDPLO\FRPHVWRWKHUHVFXHDQGRQWKHZD\
VDYHVWKHOLYHVRIVXQGU\JUDWHIXOEHDVWVDUULYHGDWWKHPDJLFLDQ¶VFDVWOHKHILQGVDFDSWLYHSULQFHVVUHDG\WRDFFHSWKLV
ORYHDQGWRSOD\WKHSDUWRI'HOLODKWRWKHHQFKDQWHU,QERWKVWRULHVWKHHQFKDQWHU¶VOLIHGHSHQGVRQWKHLQWHJULW\RI
VRPHWKLQJZKLFKLVHODERUDWHO\KLGGHQLQDIDUGLVWDQWLVODQGEXWZKLFKWKHIRUWXQDWH\RXWKLQVWUXFWHGE\WKHDUWIXO
SULQFHVVDQGDVVLVWHGE\KLVPHQDJHULHRIJUDWHIXOEHDVWVVXFFHHGVLQREWDLQLQJ,QERWKVWRULHVWKH\RXWKXVHVKLV
DGYDQWDJHWRIUHHDOOKLVIULHQGVIURPWKHLUHQFKDQWPHQWDQGWKHQSURFHHGVWRGHVWUR\WKHYLOODLQZKRZURXJKWDOOWKLV
ZLFNHGQHVV<HWLQVSLWHRIWKLVDJUHHPHQW0D[0XOOHULI,XQGHUVWDQGKLPDULJKWZRXOGQRWKDYHXVLQIHUWKHLGHQWLW\
RIWKHWZRVWRULHVXQWLOZHKDYHWDNHQHDFKRQHVHSDUDWHO\DQGDVFHUWDLQHGLWVSULPLWLYHP\WKLFDOVLJQLILFDQFH
2WKHUZLVHIRUDXJKWZHFDQWHOOWKHUHVHPEODQFHPD\EHSXUHO\DFFLGHQWDOOLNHWKDWRIWKH)UHQFKZRUGVIRU³PRXVH´
DQG³VPLOH´
>@&KLSVIURPD*HUPDQ:RUNVKRS9RO,,S
$OLWWOHUHIOHFWLRQKRZHYHUZLOOUHOLHYHXVIURPWKLVSHUSOH[LW\DQGDVVXUHXVWKDWWKHDOOHJHGDQDORJ\EHWZHHQWKH
FRPSDULVRQRIZRUGVDQGWKHFRPSDULVRQRIVWRULHVLVXWWHUO\VXSHUILFLDO7KHWUDQVIRUPDWLRQVRIZRUGV²ZKLFKDUH
RIWHQDVWRXQGLQJHQRXJK²GHSHQGXSRQDIHZZHOOHVWDEOLVKHGSK\VLRORJLFDOSULQFLSOHVRIXWWHUDQFHDQGVLQFH
SKLORORJ\KDVOHDUQHGWRUHO\XSRQWKHVHSULQFLSOHVLWKDVEHFRPHQHDUO\DVVXUHLQLWVPHWKRGVDQGUHVXOWVDVRQHRIWKH
VRFDOOHG³H[DFWVFLHQFHV´)ROO\HQRXJKLVGRXEWOHVVFRPPLWWHGZLWKLQLWVSUHFLQFWVE\ZULWHUVZKRYHQWXUHWKHUH
ZLWKRXWWKHODERULRXVSUHSDUDWLRQZKLFKWKLVVFLHQFHPRUHWKDQDOPRVWDQ\RWKHUGHPDQGV%XWWKHSURFHHGLQJVRIWKH
WUDLQHGSKLORORJLVWDUHQRPRUHDUELWUDU\WKDQWKRVHRIWKHWUDLQHGDVWURQRPHU$QGWKRXJKWKHIRUPHUPD\VHHPWREH
VWUDLQLQJDWDJQDWDQGVZDOORZLQJDFDPHOZKHQKHFRROO\WHOOV\RXWKDWYLROLQDQGILGGOHDUHWKHVDPHZRUGZKLOH
(QJOLVKFDUHDQG/DWLQFXUDKDYHQRWKLQJWRGRZLWKHDFKRWKHUKHLVQHYHUWKHOHVVQRPRUHLQGXOJLQJLQJXHVVZRUN
WKDQWKHDVWURQRPHUZKRFRQIHVVHVKLVLJQRUDQFHDVWRWKHKDELWDELOLW\RI9HQXVZKLOHDVVHUWLQJKLVNQRZOHGJHRIWKH
H[LVWHQFHRIK\GURJHQLQWKHDWPRVSKHUHRI6LULXV7RFLWHRQHH[DPSOHRXWRIDKXQGUHGHYHU\SKLORORJLVWNQRZVWKDWV
PD\EHFRPHUDQGWKDWWKHEURDGDVRXQGPD\GZLQGOHLQWRWKHFORVHURVRXQGEXWZKHQ\RXDGGXFHVRPHSODXVLEOH
HW\PRORJ\EDVHGRQWKHDVVXPSWLRQWKDWUKDVFKDQJHGLQWRVRURLQWRDDSDUWIURPWKHGHPRQVWUDEOHLQIOXHQFHRI
VRPHDGMDFHQWOHWWHUWKHSKLORORJLVWZLOOVKDNHKLVKHDG
1RZLQWKHVWXG\RIVWRULHVWKHUHDUHQRVXFKVLPSOHUXOHVDOOFXWDQGGULHGIRUXVWRJRE\7KHUHLVQRXQLIRUP
SV\FKRORJLFDOSULQFLSOHZKLFKGHWHUPLQHVWKDWWKHWKUHHKHDGHGVQDNHLQRQHVWRU\VKDOOEHFRPHDWKUHHKHDGHGPDQLQ
WKHQH[W7KHUHLVQR*ULPP¶V/DZLQP\WKRORJ\ZKLFKGHFLGHVWKDWD+LQGXPDJLFLDQVKDOODOZD\VFRUUHVSRQGWRD
1RUZHJLDQ7UROORUD.HOWLF'UXLG7KHODZVRIDVVRFLDWLRQRILGHDVDUHQRWVRVLPSOHLQDSSOLFDWLRQDVWKHODZVRI
XWWHUDQFH,QVKRUWWKHVWXG\RIP\WKVWKRXJKLWFDQEHPDGHVXIILFLHQWO\VFLHQWLILFLQLWVPHWKRGVDQGUHVXOWVGRHVQRW
FRQVWLWXWHDVFLHQFHE\LWVHOIOLNHSKLORORJ\,WVWDQGVRQDIRRWLQJVLPLODUWRWKDWRFFXSLHGE\SK\VLFDOJHRJUDSK\RU
ZKDWWKH*HUPDQVFDOO³HDUWKNQRZOHGJH´1RRQHGHQLHVWKDWDOOWKHFKDQJHVJRLQJRQRYHUWKHHDUWK¶VVXUIDFHFRQIRUP
WRSK\VLFDOODZVEXWWKHQQRRQHSUHWHQGVWKDWWKHUHLVDQ\VLQJOHSUR[LPDWHSULQFLSOHZKLFKJRYHUQVDOOWKHSKHQRPHQD
RIUDLQIDOORIVRLOFUXPEOLQJRIPDJQHWLFYDULDWLRQDQGRIWKHGLVWULEXWLRQRISODQWVDQGDQLPDOV$OOWKHVHWKLQJVDUH
H[SODLQHGE\SULQFLSOHVREWDLQHGIURPWKHYDULRXVVFLHQFHVRISK\VLFVFKHPLVWU\JHRORJ\DQGSK\VLRORJ\$QGLQMXVW
WKHVDPHZD\WKHGHYHORSPHQWDQGGLVWULEXWLRQRIVWRULHVLVH[SODLQHGE\WKHKHOSRIGLYHUVUHVRXUFHVFRQWULEXWHGE\
SKLORORJ\SV\FKRORJ\DQGKLVWRU\7KHUHLVWKHUHIRUHQRUHDODQDORJ\EHWZHHQWKHFDVHVFLWHGE\0D[0XOOHU7ZR
XQUHODWHGZRUGVPD\EHJURXQGLQWRH[DFWO\WKHVDPHVKDSHMXVWDVDSHEEOHIURPWKH1RUWK6HDPD\EH
XQGLVWLQJXLVKDEOHIURPDQRWKHUSHEEOHRQWKHEHDFKRIWKH$GULDWLFEXWWZRVWRULHVOLNHWKRVHRI3XQFKNLQDQGWKH
+HDUWOHVV*LDQWDUHQRPRUHOLNHO\WRDULVHLQGHSHQGHQWO\RIHDFKRWKHUWKDQWZRFRUDOUHHIVRQRSSRVLWHVLGHVRIWKH
JOREHDUHOLNHO\WRGHYHORSLQWRH[DFWO\VLPLODULVODQGV
6KDOOZHWKHQVD\EROGO\WKDWFORVHVLPLODULW\EHWZHHQOHJHQGVLVSURRIRINLQVKLSDQGJRRXUZD\ZLWKRXWIXUWKHU
PLVJLYLQJV"8QIRUWXQDWHO\ZHFDQQRWGLVSRVHRIWKHPDWWHULQTXLWHVRVXPPDU\DIDVKLRQIRULWUHPDLQVWRGHFLGHZKDW
NLQGDQGGHJUHHRIVLPLODULW\VKDOOEHFRQVLGHUHGVDWLVIDFWRU\HYLGHQFHRINLQVKLS$QGLWLVMXVWKHUHWKDWGRFWRUVPD\
GLVDJUHH+HUHLVWKHSRLQWDWZKLFKRXU³VFLHQFH´EHWUD\VLWVZHDNQHVVDVFRPSDUHGZLWKWKHVLVWHUVWXG\RISKLORORJ\
%HIRUHZHFDQGHFLGHZLWKFRQILGHQFHLQDQ\FDVHDJUHDWPDVVRIHYLGHQFHPXVWEHEURXJKWLQWRFRXUW6RORQJDVZH
UHPDLQHGRQ$U\DQJURXQGDOOZHQWVPRRWKO\HQRXJKEHFDXVHDOOWKHH[WHUQDOHYLGHQFHZDVLQRXUIDYRXU:HNQHZDW
WKHRXWVHWWKDWWKH$U\DQVLQKHULWDFRPPRQODQJXDJHDQGDFRPPRQFLYLOL]DWLRQDQGWKHUHIRUHZHIRXQGQRGLIILFXOW\
LQDFFHSWLQJWKHFRQFOXVLRQWKDWWKH\KDYHLQKHULWHGDPRQJRWKHUWKLQJVDFRPPRQVWRFNRIOHJHQGV,QWKHEDUEDULF
ZRUOGLWLVTXLWHRWKHUZLVH3KLORORJ\GRHVQRWSURQRXQFHLQIDYRXURIDFRPPRQRULJLQIRUDOOEDUEDULFFXOWXUHVXFKDV
LWLV7KHQRWLRQRIDVLQJOHSULPLWLYHODQJXDJHVWDQGLQJLQWKHVDPHUHODWLRQWRDOOH[LVWLQJGLDOHFWVDVWKHUHODWLRQRIROG
$U\DQWR/DWLQDQG(QJOLVKRUWKDWRIROG6HPLWLFWR+HEUHZDQG$UDELFZDVDQRWLRQVXLWHGRQO\WRWKHLQIDQF\RI
OLQJXLVWLFVFLHQFH$VWKHFDVHQRZVWDQGVLWLVFHUWDLQWKDWDOOWKHODQJXDJHVDFWXDOO\H[LVWLQJFDQQRWEHUHIHUUHGWRD
FRPPRQDQFHVWRUDQGLWLVDOWRJHWKHUSUREDEOHWKDWWKHUHQHYHUZDVDQ\VXFKFRPPRQDQFHVWRU,DPQRWQRZUHIHUULQJ
WRWKHTXHVWLRQRIWKHXQLW\RIWKHKXPDQUDFH7KDWTXHVWLRQOLHVHQWLUHO\RXWVLGHWKHVSKHUHRISKLORORJ\7KHVFLHQFH
RIODQJXDJHKDVQRWKLQJWRGRZLWKVNXOOVRUFRPSOH[LRQVDQGQRFRPSDULVRQRIZRUGVFDQWHOOXVZKHWKHUWKHEODFN
PHQDUHEUHWKUHQRIWKHZKLWHPHQRUZKHWKHU\HOORZDQGUHGPHQKDYHDFRPPRQSHGLJUHHWKHVHTXHVWLRQVEHORQJWR
FRPSDUDWLYHSK\VLRORJ\%XWWKHVFLHQFHRIODQJXDJHFDQDQGGRHVWHOOXVWKDWDFHUWDLQDPRXQWRIFLYLOL]DWLRQLV
UHTXLVLWHIRUWKHSURGXFWLRQRIDODQJXDJHVXIILFLHQWO\GXUDEOHDQGZLGHVSUHDGWRJLYHELUWKWRQXPHURXVPXWXDOO\
UHVHPEOLQJRIIVSULQJ%DUEDULFODQJXDJHVDUHQHLWKHUZLGHVSUHDGQRUGXUDEOH$PRQJVDYDJHVHDFKOLWWOHJURXSRI
IDPLOLHVKDVLWVRZQGLDOHFWDQGFRLQVLWVRZQH[SUHVVLRQVDWSOHDVXUHDQGLQWKHFRXUVHRIWZRRUWKUHHJHQHUDWLRQVD
GLDOHFWJHWVVRVWUDQJHO\DOWHUHGDVYLUWXDOO\WRORVHLWVLGHQWLW\(YHQQXPHUDOVDQGSHUVRQDOSURQRXQVZKLFKWKH$U\DQ
KDVSUHVHUYHGIRUILIW\FHQWXULHVJHWORVWHYHU\IHZ\HDUVLQ3RO\QHVLD6LQFHWKHWLPHRI&DSWDLQ&RRNWKH7DKLWLDQ
ODQJXDJHKDVWKURZQDZD\ILYHRXWRILWVWHQVLPSOHQXPHUDOVDQGUHSODFHGWKHPE\EUDQGQHZRQHVDQGRQWKH
$PD]RQ\RXPD\DFTXLUHDIOXHQWFRPPDQGRIVRPH,QGLDQGLDOHFWDQGWKHQFRPLQJEDFNDIWHUWZHQW\\HDUVILQG
\RXUVHOIZRUVHRIIWKDQ5LS9DQ:LQNOHDQG\RXUOHDUQLQJDOODQWLTXDWHGDQGXVHOHVV+RZDEVXUGWKHUHIRUHWR
VXSSRVHWKDWSULPHYDOVDYDJHVRULJLQDWHGDODQJXDJHZKLFKKDVKHOGLWVRZQOLNHWKHROG$U\DQDQGEHFRPHWKHSUROLILF
PRWKHURIWKHWKUHHRUIRXUWKRXVDQGGLDOHFWVQRZLQH[LVWHQFH%HIRUHDGXUDEOHODQJXDJHFDQDULVHWKHUHPXVWEHDQ
DJJUHJDWLRQRIQXPHURXVWULEHVLQWRDSHRSOHVRWKDWWKHUHPD\EHQHHGRIFRPPXQLFDWLRQRQDODUJHVFDOHDQGVRWKDW
WUDGLWLRQPD\EHVWUHQJWKHQHG:KHUHYHUPDQNLQGKDYHDVVRFLDWHGLQQDWLRQVSHUPDQHQWODQJXDJHVKDYHDULVHQDQG
WKHLUGHULYDWLYHGLDOHFWVEHDUWKHFRQVSLFXRXVPDUNVRINLQVKLSEXWZKHUHPDQNLQGKDYHUHPDLQHGLQWKHLUSULPLWLYH
VDYDJHLVRODWLRQWKHLUODQJXDJHVKDYHUHPDLQHGVSRUDGLFDQGWUDQVLWRU\LQFDSDEOHRIRUJDQLFGHYHORSPHQWDQG
VKRZLQJQRWUDFHVRIDNLQVKLSZKLFKQHYHUH[LVWHG
7KHEHDULQJRIWKHVHFRQVLGHUDWLRQVXSRQWKHRULJLQDQGGLIIXVLRQRIEDUEDULFP\WKVLVREYLRXV7KHGHYHORSPHQWRID
FRPPRQVWRFNRIOHJHQGVLVRIFRXUVHLPSRVVLEOHVDYHZKHUHWKHUHLVDFRPPRQODQJXDJHDQGWKXVSKLORORJ\
SURQRXQFHVDJDLQVWWKHNLQVKLSRIEDUEDULFP\WKVZLWKHDFKRWKHUDQGZLWKVLPLODUP\WKVRIWKH$U\DQDQG6HPLWLF
ZRUOGV6LPLODUVWRULHVWROGLQ*UHHFHDQG1RUZD\DUHOLNHO\WRKDYHDFRPPRQSHGLJUHHEHFDXVHWKHSHUVRQVZKRKDYH
SUHVHUYHGWKHPLQUHFROOHFWLRQVSHDNDFRPPRQODQJXDJHDQGKDYHLQKHULWHGWKHVDPHFLYLOL]DWLRQ%XWVLPLODUVWRULHV
WROGLQ/DEUDGRUDQG6RXWK$IULFDDUHQRWOLNHO\WREHJHQHDORJLFDOO\UHODWHGEHFDXVHLWLVDOWRJHWKHUSUREDEOHWKDWWKH
(VTXLPDX[DQGWKH=XOXKDGDFTXLUHGWKHLUSUHVHQWUDFHFKDUDFWHULVWLFVEHIRUHHLWKHURIWKHPSRVVHVVHGDODQJXDJHRUD
FXOWXUHVXIILFLHQWIRUWKHSURGXFWLRQRIP\WKV$FFRUGLQJWRWKHQDWXUHDQGH[WHQWRIWKHVLPLODULW\LWPXVWEHGHFLGHG
ZKHWKHUVXFKVWRULHVKDYHEHHQFDUULHGDERXWIURPRQHSDUWRIWKHZRUOGWRDQRWKHURUKDYHEHHQLQGHSHQGHQWO\
RULJLQDWHGLQPDQ\GLIIHUHQWSODFHV
+HUHWKHPHWKRGVRISKLORORJ\VXJJHVWDUXOHZKLFKZLOORIWHQEHIRXQGXVHIXO,QFRPSDULQJWKHYRFDEXODULHVRI
GLIIHUHQWODQJXDJHVWKRVHZRUGVZKLFKGLUHFWO\LPLWDWHQDWXUDOVRXQGV²VXFKDVZKL]FUDVKFUDFNOH²DUHQRWDGPLWWHG
DVHYLGHQFHRINLQVKLSEHWZHHQWKHODQJXDJHVLQZKLFKWKH\RFFXU5HVHPEODQFHVEHWZHHQVXFKZRUGVDUHREYLRXVO\
QRSURRIRIDFRPPRQDQFHVWU\DQGWKH\DUHRIWHQPHWZLWKLQODQJXDJHVZKLFKKDYHGHPRQVWUDEO\KDGQRFRQQHFWLRQ
ZLWKHDFKRWKHU6RLQP\WKRORJ\ZKHUHZHILQGWZRVWRULHVRIZKLFKWKHSULPLWLYHFKDUDFWHULVSHUIHFWO\WUDQVSDUHQW
ZHQHHGKDYHQRGLIILFXOW\LQVXSSRVLQJWKHPWRKDYHRULJLQDWHGLQGHSHQGHQWO\7KHP\WKRI-DFNDQGKLV%HDQVWDONLV
IRXQGDOORYHUWKHZRUOGEXWWKHLGHDRIDFRXQWU\DERYHWKHVN\WRZKLFKSHUVRQVPLJKWJDLQDFFHVVE\FOLPELQJLV
RQHZKLFKFRXOGKDUGO\IDLOWRRFFXUWRHYHU\EDUEDULDQ$PRQJWKH$PHULFDQWULEHVDVZHOODVDPRQJWKH$U\DQVWKH
UDLQERZDQGWKH0LON\:D\KDYHFRQWULEXWHGWKHLGHDRID%ULGJHRIWKH'HDGRYHUZKLFKVRXOVPXVWSDVVRQWKHZD\
WRWKHRWKHUZRUOG,Q6RXWK$IULFDDVZHOODVLQ*HUPDQ\WKHKDELWVRIWKHIR[DQGRIKLVEURWKHUWKHMDFNDOKDYHJLYHQ
ULVHWRIDEOHVLQZKLFKEUXWHIRUFHLVRYHUFRPHE\FXQQLQJ,QPDQ\SDUWVRIWKHZRUOGZHILQGFXULRXVO\VLPLODUVWRULHV
GHYLVHGWRDFFRXQWIRUWKHVWXPS\WDLOVRIWKHEHDUDQGK\DHQDWKHKDLUOHVVWDLORIWKHUDWDQGWKHEOLQGQHVVRIWKHPROH
$QGLQDOOFRXQWULHVPD\EHIRXQGWKHEHOLHIVWKDWPHQPD\EHFKDQJHGLQWREHDVWVRUSODQWVRUVWRQHVWKDWWKHVXQLV
LQVRPHZD\WHWKHUHGRUFRQVWUDLQHGWRIROORZDFHUWDLQFRXUVHWKDWWKHVWRUPFORXGLVDUDYHQRXVGUDJRQDQGWKDWWKHUH
DUHWDOLVPDQVZKLFKZLOOUHYHDOKLGGHQWUHDVXUHV$OOWKHVHFRQFHSWLRQVDUHVRREYLRXVWRWKHXQFLYLOL]HGLQWHOOLJHQFH
WKDWVWRULHVIRXQGHGXSRQWKHPQHHGQRWEHVXSSRVHGWRKDYHDFRPPRQRULJLQXQOHVVWKHUHWXUQVRXWWREHDVWULNLQJ
VLPLODULW\DPRQJWKHLUPLQRUGHWDLOV2QWKHRWKHUKDQGWKHQXPHURXVP\WKVRIDQDOOGHVWUR\LQJGHOXJHKDYHGRXEWOHVV
DULVHQSDUWO\IURPUHPLQLVFHQFHVRIDFWXDOO\RFFXUULQJORFDOLQXQGDWLRQVDQGSDUWO\IURPWKHIDFWWKDWWKH6FULSWXUDO
DFFRXQWRIDGHOXJHKDVEHHQFDUULHGDOORYHUWKHZRUOGE\&DWKROLFDQG3URWHVWDQWPLVVLRQDULHV>@
>@)RUYDULRXVOHJHQGVRIDGHOXJHVHH%DULQJ*RXOG/HJHQGVRIWKH3DWULDUFKVDQG3URSKHWVSS
%\ZD\RILOOXVWUDWLQJWKHVHSULQFLSOHVOHWXVQRZFLWHDIHZRIWKH$PHULFDQP\WKVVRFDUHIXOO\FROOHFWHGE\'U
%ULQWRQLQKLVDGPLUDEOHWUHDWLVH:HVKDOOQRWILQGLQWKHP\WKRORJ\RIWKH1HZ:RUOGWKHZHDOWKRIZLWDQG
LPDJLQDWLRQZKLFKKDVVRORQJGHOLJKWHGXVLQWKHVWRULHVRI+HUDNOHV3HUVHXV+HUPHV6LJXUGDQG,QGUD7KHP\WKLF
ORUHRIWKH$PHULFDQ,QGLDQVLVFRPSDUDWLYHO\VFDQW\DQGSURVDLFDVEHILWVWKHSURGXFWRIDORZHUJUDGHRIFXOWXUHDQGD
PRUHPHDJUHLQWHOOHFW1RWRQO\DUHWKHSHUVRQDJHVOHVVFKDUDFWHULVWLFDOO\SRXUWUD\HGEXWWKHUHLVDFRQWLQXDOWHQGHQF\
WRH[WUDYDJDQFHWKHVXUHLQGH[RIDQLQIHULRULPDJLQDWLRQ1HYHUWKHOHVVDIWHUPDNLQJGXHDOORZDQFHVIRUGLIIHUHQFHVLQ
WKHDUWLVWLFPHWKRGRIWUHDWPHQWWKHUHLVEHWZHHQWKHP\WKRORJLHVRIWKH2OGDQGWKH1HZ:RUOGVDIXQGDPHQWDO
UHVHPEODQFH:HFRPHXSRQVRODUP\WKVDQGP\WKVRIWKHVWRUPFXULRXVO\EOHQGHGZLWKFXOWXUHP\WKVDVLQWKHFDVHV
RI+HUPHV3URPHWKHXVDQG.DGPRV7KH$PHULFDQSDUDOOHOVWRWKHVHDUHWREHIRXQGLQWKHVWRULHVRI0LFKDER
9LUDFRFKD,RVNHKDDQG4XHW]DOFRDWO³$VHOVHZKHUHWKHZRUOGRYHUVRLQ$PHULFDPDQ\WULEHVKDGWRWHOORIDQ
DXJXVWFKDUDFWHUZKRWDXJKWWKHPZKDWWKH\NQHZWKHWLOODJHRIWKHVRLOWKHSURSHUWLHVRISODQWVWKHDUWRISLFWXUH
ZULWLQJWKHVHFUHWVRIPDJLFZKRIRXQGHGWKHLULQVWLWXWLRQVDQGHVWDEOLVKHGWKHLUUHOLJLRQVZKRJRYHUQHGWKHPORQJ
ZLWKJORU\DEURDGDQGSHDFHDWKRPHDQGILQDOO\GLGQRWGLHEXWOLNH)UHGHULF%DUEDURVVD&KDUOHPDJQH.LQJ$UWKXU
DQGDOOJUHDWKHURHVYDQLVKHGP\VWHULRXVO\DQGVWLOOOLYHVVRPHZKHUHUHDG\DWWKHULJKWPRPHQWWRUHWXUQWRKLV
EHORYHGSHRSOHDQGOHDGWKHPWRYLFWRU\DQGKDSSLQHVV´>@(YHU\RQHLVIDPLOLDUZLWKWKHQXPHURXVOHJHQGVRI
ZKLWHVNLQQHGIXOOEHDUGHGKHURHVOLNHWKHPLOG4XHW]DOFRDWOZKRLQWLPHVORQJSUHYLRXVWR&ROXPEXVFDPHIURPWKH
IDU(DVWWRLPSDUWWKHUXGLPHQWVRIFLYLOL]DWLRQDQGUHOLJLRQWRWKHUHGPHQ%\WKRVHZKRILUVWKHDUGWKHVHVWRULHVWKH\
ZHUHVXSSRVHGZLWKQDLYH(XKHPHULVPWRUHIHUWRSUH&ROXPELDQYLVLWVRI(XURSHDQVWRWKLVFRQWLQHQWOLNHWKDWRIWKH
1RUWKPHQLQWKHWHQWKFHQWXU\%XWDVFLHQWLILFVWXG\RIWKHVXEMHFWKDVGLVVLSDWHGVXFKQRWLRQV7KHVHOHJHQGVDUHIDU
WRRQXPHURXVWKH\DUHWRRVLPLODUWRHDFKRWKHUWKH\DUHWRRPDQLIHVWO\V\PEROLFDOWRDGPLWRIDQ\VXFK
LQWHUSUHWDWLRQ%\FRPSDULQJWKHPFDUHIXOO\ZLWKHDFKRWKHUDQGZLWKFRUUHODWLYHP\WKVRIWKH2OG:RUOGWKHLUWUXH
FKDUDFWHUVRRQEHFRPHVDSSDUHQW
>@%ULQWRQ0\WKVRIWKH1HZ:RUOGS
2QHRIWKHPRVWZLGHO\IDPRXVRIWKHVHFXOWXUHKHURHVZDV0DQDER]KRRU0LFKDERWKH*UHDW+DUH:LWKHQWLUH
XQDQLPLW\VD\V'U%ULQWRQWKHYDULRXVEUDQFKHVRIWKH$OJRQTXLQUDFH³WKH3RZKDWDQVRI9LUJLQLDWKH/HQQL/HQDSH
RIWKH'HODZDUHWKHZDUOLNHKRUGHVRI1HZ(QJODQGWKH2WWDZDVRIWKHIDU1RUWKDQGWKH:HVWHUQWULEHVSHUKDSV
ZLWKRXWH[FHSWLRQVSRNHRIWKLVFKLPHULFDOEHDVW¶DVRQHRIWKHROGPLVVLRQDULHVFDOOVLWDVWKHLUFRPPRQDQFHVWRU7KH
WRWHPRUFODQZKLFKERUHKLVQDPHZDVORRNHGXSWRZLWKSHFXOLDUUHVSHFW´1RWRQO\ZDV0LFKDERWKHUXOHUDQG
JXDUGLDQRIWKHVHQXPHURXVWULEHVKHZDVWKHIRXQGHURIWKHLUUHOLJLRXVULWHVWKHLQYHQWRURISLFWXUHZULWLQJWKHUXOHU
RIWKHZHDWKHUWKHFUHDWRUDQGSUHVHUYHURIHDUWKDQGKHDYHQ³)URPDJUDLQRIVDQGEURXJKWIURPWKHERWWRPRIWKH
SULPHYDORFHDQKHIDVKLRQHGWKHKDELWDEOHODQGDQGVHWLWIORDWLQJRQWKHZDWHUVWLOOLW JUHZWRVXFKDVL]HWKDWDVWURQJ
\RXQJZROIUXQQLQJFRQVWDQWO\GLHGRIROGDJHHUHKHUHDFKHGLWVOLPLWV´+HZDVDOVROLNH1LPURGDPLJKW\KXQWHU
³2QHRIKLVIRRWVWHSVPHDVXUHGHLJKWOHDJXHVWKH*UHDW/DNHVZHUHWKHEHDYHUGDPVKHEXLOWDQGZKHQWKHFDWDUDFWV
LPSHGHGKLVSURJUHVVKHWRUHWKHPDZD\ZLWKKLVKDQGV´³6RPHWLPHVKHZDVVDLGWRGZHOOLQWKHVNLHVZLWKKLVEURWKHU
WKH6QRZRUOLNHPDQ\JUHDWVSLULWVWRKDYHEXLOWKLVZLJZDPLQWKHIDU1RUWKRQVRPHIORHRILFHLQWKH$UFWLF
2FHDQ%XWLQWKHROGHVWDFFRXQWVRIWKHPLVVLRQDULHVKHZDVDOOHJHGWRUHVLGHWRZDUGWKH(DVWDQGLQWKHKRO\
IRUPXODHRIWKHPHGDFUDIWZKHQWKHZLQGVDUHLQYRNHGWRWKHPHGLFLQHORGJHWKH(DVWLVVXPPRQHGLQKLVQDPHWKH
GRRURSHQVLQWKDWGLUHFWLRQDQGWKHUHDWWKHHGJHRIWKHHDUWKZKHUHWKHVXQULVHVRQWKHVKRUHRIWKHLQILQLWHRFHDQ
WKDWVXUURXQGVWKHODQGKHKDVKLVKRXVHDQGVHQGVWKHOXPLQDULHVIRUWKRQWKHLUGDLO\MRXUQH\V´>@)URPVXFK
DFFRXQWVDVWKLVZHVHHWKDW0LFKDERZDVQRPRUHDZLVHLQVWUXFWRUDQGOHJLVODWRUWKDQ0LQRVRU.DGPRV/LNHWKHVH
KHURHVKHLVDSHUVRQLILFDWLRQRIWKHVRODUOLIHJLYLQJSRZHUZKLFKGDLO\FRPHVIRUWKIURPLWVKRPHLQWKHHDVWPDNLQJ
WKHHDUWKWRUHMRLFH7KHHW\PRORJ\RIKLVQDPHFRQILUPVWKHRWKHUZLVHFOHDULQGLFDWLRQVRIWKHOHJHQGLWVHOI,WLV
FRPSRXQGHGRIPLFKL³JUHDW´DQGZDERVZKLFKPHDQVDOLNH³KDUH´DQG³ZKLWH´³'LDOHFWLFIRUPVLQ$OJRQTXLQIRU
ZKLWHDUHZDELZDSHZDPSLHWFIRUPRUQLQJZDSDQZDSDQFKRSDKIRUHDVWZDSDZDQEXQHWFIRUGD\ZRPSDQ
RSSDQIRUOLJKWRSSXQJ´6RWKDW0LFKDERLVWKH*UHDW:KLWH2QHWKH*RGRIWKH'DZQDQGWKH(DVW$QGWKH
HW\PRORJLFDOFRQIXVLRQE\YLUWXHRIZKLFKKHDFTXLUHGKLVVRXEULTXHWRIWKH*UHDW+DUHDIIRUGVDFXULRXVSDUDOOHOWR
ZKDWKDVRIWHQKDSSHQHGLQ$U\DQDQG6HPLWLFP\WKRORJ\DVZHVDZZKHQGLVFXVVLQJWKHVXEMHFWRIZHUHZROYHV
>@%ULQWRQRSFLWS
.HHSLQJLQPLQGWKLVVRODUFKDUDFWHURI0LFKDEROHWXVQRWHKRZIXOORIPHDQLQJDUHWKHP\WKVFRQFHUQLQJKLP,QWKH
ILUVWF\FOHRIWKHVHOHJHQGV³KHLVJUDQGVRQRIWKH0RRQKLVIDWKHULVWKH:HVW:LQGDQGKLVPRWKHUDPDLGHQGLHVLQ
JLYLQJKLPELUWKDWWKHPRPHQWRIFRQFHSWLRQ)RUWKH0RRQLVWKHJRGGHVVRIQLJKWWKH'DZQLVKHUGDXJKWHUZKR
EULQJVIRUWKWKH0RUQLQJDQGSHULVKHVKHUVHOILQWKHDFWDQGWKH:HVWWKHVSLULWRIGDUNQHVVDVWKH(DVWLVRIOLJKW
SUHFHGHVDQGDVLWZHUHEHJHWVWKHODWWHUDVWKHHYHQLQJGRHVWKHPRUQLQJ6WUDLJKWZD\KRZHYHUFRQWLQXHVWKHOHJHQG
WKHVRQVRXJKWWKHXQQDWXUDOIDWKHUWRUHYHQJHWKHGHDWKRIKLVPRWKHUDQGWKHQFRPPHQFHGDORQJDQGGHVSHUDWH
VWUXJJOH,WEHJDQRQWKHPRXQWDLQV7KH:HVWZDVIRUFHGWRJLYHJURXQG0DQDER]KRGURYHKLPDFURVVULYHUVDQG
RYHUPRXQWDLQVDQGODNHVDQGDWODVWKHFDPHWRWKHEULQNRIWKLVZRUOGµ+ROG¶FULHGKHµP\VRQ\RXNQRZP\
SRZHUDQGWKDWLWLVLPSRVVLEOHWRNLOOPH¶:KDWLVWKLVEXWWKHGLXUQDOFRPEDWRIOLJKWDQGGDUNQHVVFDUULHGRQIURP
ZKDWWLPHµWKHMRFXQGPRUQVWDQGVWLSWRHRQWKHPLVW\PRXQWDLQWRSV¶DFURVVWKHZLGHZRUOGWRWKHVXQVHWWKHVWUXJJOH
WKDWNQRZVQRHQGIRUERWKWKHRSSRQHQWVDUHLPPRUWDO"´>@
>@%ULQWRQRSFLWS
(YHQWKH9HGDQRZKHUHDIIRUGVDPRUHWUDQVSDUHQWQDUUDWLYHWKDQWKLV7KH,URTXRLVWUDGLWLRQLVYHU\VLPLODU,QLW
DSSHDUWZLQEURWKHUV>@ERUQRIDYLUJLQPRWKHUGDXJKWHURIWKH0RRQZKRGLHGLQJLYLQJWKHPOLIH7KHLUQDPHV
,RVNHKDDQG7DZLVNDUDVLJQLI\LQWKH2QHLGDGLDOHFWWKH:KLWH2QHDQGWKH'DUN2QH8QGHUWKHLQIOXHQFHRI&KULVWLDQ
LGHDVWKHFRQWHVWEHWZHHQWKHEURWKHUVKDVEHHQPDGHWRDVVXPHDPRUDOFKDUDFWHUOLNHWKHVWULIHEHWZHHQ2UPX]GDQG
$KULPDQ%XWQRVXFKLQWHQWLRQDSSHDUVLQWKHRULJLQDOP\WKDQG'U%ULQWRQKDVVKRZQWKDWQRQHRIWKH$PHULFDQ
WULEHVKDGDQ\FRQFHSWLRQRID'HYLO:KHQWKHTXDUUHOFDPHWREORZVWKHGDUNEURWKHUZDVVLJQDOO\GLVFRPILWHGDQG
WKHYLFWRULRXV,RVNHKDUHWXUQLQJWRKLVJUDQGPRWKHU³HVWDEOLVKHGKLVORGJHLQWKHIDU(DVWRQWKHKRUGHUVRIWKH*UHDW
2FHDQZKHQFHWKHVXQFRPHV,QWLPHKHEHFDPHWKHIDWKHURIPDQNLQGDQGVSHFLDOJXDUGLDQRIWKH,URTXRLV´+H
FDXVHGWKHHDUWKWREULQJIRUWKKHVWRFNHGWKHZRRGVZLWKJDPHDQGWDXJKWKLVFKLOGUHQWKHXVHRIILUH³+HLWZDVZKR
ZDWFKHGDQGZDWHUHGWKHLUFURSVµDQGLQGHHGZLWKRXWKLVDLG¶VD\VWKHROGPLVVLRQDU\TXLWHRXWRISDWLHQFHZLWKWKHLU
SXHULOLWLHVµWKH\WKLQNWKH\FRXOGQRWERLODSRW¶³7KHUHZDVPRUHLQLWWKDQSRRU%UHERXIWKRXJKWDVZHDUHIRUFLEO\
UHPLQGHGE\UHFHQWGLVFRYHULHVLQSK\VLFDOVFLHQFH(YHQFLYLOL]HGPHQZRXOGILQGLWGLIILFXOWWRERLODSRWZLWKRXWWKH
DLGRIVRODUHQHUJ\&DOOKLPZKDWZHZLOO,RVNHKD0LFKDERRU3KRLERVWKHEHQHILFHQW6XQLVWKHPDVWHUDQG
VXVWDLQHURIXVDOODQGLIZHZHUHWRUHODSVHLQWRKHDWKHQLVPOLNH(UFNPDQQ&KDWULDQ¶VLQQNHHSHUZHFRXOGQRWGR
EHWWHUWKDQWRVHOHFWKLPDVRXUFKLHIREMHFWRIZRUVKLS
>@&RUUHVSRQGLQJLQYDULRXVGHJUHHVWRWKH$VYLQVWKH'LRVNRXURLDQGWKHEURWKHUV7UXHDQG8QWUXHRI1RUVH
P\WKRORJ\
7KHVDPHSULQFLSOHVE\ZKLFKWKHVHVLPSOHFDVHVDUHH[SODLQHGIXUQLVKDOVRWKHNH\WRWKHPRUHFRPSOLFDWHGP\WKRORJ\
RI0H[LFRDQG3HUX/LNHWKHGHLWLHVMXVWGLVFXVVHG9LUDFRFKDWKHVXSUHPHJRGRIWKH4XLFKXDVULVHVIURPWKHERVRP
RI/DNH7LWLFDFDDQGMRXUQH\VZHVWZDUGVOD\LQJZLWKKLVOLJKWQLQJVWKHFUHDWXUHVZKRRSSRVHKLPXQWLOKHILQDOO\
GLVDSSHDUVLQWKH:HVWHUQ2FHDQ/LNH$SKURGLWHKHEHDUVLQKLVQDPHWKHHYLGHQFHRIKLVRULJLQ9LUDFRFKDVLJQLI\LQJ
³IRDPRIWKHVHD´DQGKHQFHWKH³:KLWH2QH´ O¶DXEH WKHJRGRIOLJKWULVLQJZKLWHRQWKHKRUL]RQOLNHWKHIRDPRQ
WKHVXUIDFHRIWKHZDYHV7KH$\PDUDVVSRNHRIWKHLURULJLQDODQFHVWRUVDVZKLWHDQGWRWKLVGD\DV'U%ULQWRQ
LQIRUPVXVWKH3HUXYLDQVFDOODZKLWHPDQ9LUDFRFKD7KHP\WKRI4XHW]DOFRDWOLVRISUHFLVHO\WKHVDPHFKDUDFWHU$OO
WKHVHVRODUKHURHVSUHVHQWLQPRVWRIWKHLUTXDOLWLHVDQGDFKLHYHPHQWVDVWULNLQJOLNHQHVVWRWKRVHRIWKH2OG:RUOG
7KH\FRPELQHWKHDWWULEXWHVRI$SROOR+HUDNOHVDQG+HUPHV/LNH+HUDNOHVWKH\MRXUQH\IURPHDVWWRZHVWVPLWLQJ
WKHSRZHUVRIGDUNQHVVVWRUPDQGZLQWHUZLWKWKHWKXQGHUEROWVRI=HXVRUWKHXQHUULQJDUURZVRI3KRLERVDQGVLQNLQJ
LQDEOD]HRIJORU\RQWKHZHVWHUQYHUJHRIWKHZRUOGZKHUHWKHZDYHVPHHWWKHILUPDPHQW2UOLNH+HUPHVLQDVHFRQG
F\FOHRIOHJHQGVWKH\ULVHZLWKWKHVRIWEUHH]HVRIDVXPPHUPRUQLQJGULYLQJEHIRUHWKHPWKHEULJKWFHOHVWLDOFDWWOH
ZKRVHXGGHUVDUHKHDY\ZLWKUHIUHVKLQJUDLQIDQQLQJWKHIODPHVZKLFKGHYRXUWKHIRUHVWVEOXVWHULQJDWWKHGRRUVRI
ZLJZDPVDQGHVFDSLQJZLWKZHLUGODXJKWHUWKURXJKYHQWVDQGFUHYLFHV7KHZKLWHVNLQVDQGIORZLQJEHDUGVRIWKHVH
$PHULFDQKHURHVPD\EHDSWO\FRPSDUHGWRWKHIDLUIDFHVDQGORQJJROGHQORFNVRIWKHLU+HOOHQLFFRPSHHUV<HOORZ
KDLUZDVLQDOOSUREDELOLW\DVUDUHLQ*UHHFHDVDIXOOEHDUGLQ3HUXRU0H[LFREXWLQHDFKFDVHWKHGHVFULSWLRQVXLWVWKH
VRODUFKDUDFWHURIWKHKHUR2QHLPSRUWDQWFODVVRILQFLGHQWVKRZHYHULVDSSDUHQWO\TXLWHDEVHQWIURPWKH$PHULFDQ
OHJHQGV:HIUHTXHQWO\VHHWKH'DZQGHVFULEHGDVDYLUJLQPRWKHUZKRGLHVLQJLYLQJELUWKWRWKH'D\EXWQRZKHUHGR
ZHUHPHPEHUVHHLQJKHUSLFWXUHGDVDORYHO\RUYDOLDQWRUFUDIW\PDLGHQDUGHQWO\ZRRHGEXWVSHHGLO\IRUVDNHQE\KHU
VRODUORYHU3HUKDSVLQQRUHVSHFWLVWKHVXSHULRUULFKQHVVDQGEHDXW\RIWKH$U\DQP\WKVPRUHPDQLIHVWWKDQLQWKLV
%U\QKLOG8UYDVL0HGHLD$ULDGQH2LQRQHDQGFRXQWOHVVRWKHUNLQGUHGKHURLQHVZLWKWKHLUEULOOLDQWOHJHQGVFRXOGQRW
EHVSDUHGIURPWKHP\WKRORJ\RIRXUDQFHVWRUVZLWKRXWOHDYLQJLWPHDJUHLQGHHG7KHVHZHUHWKHPDWHULDOVZKLFK
.DOLGDVDWKH$WWLFGUDPDWLVWVDQGWKHEDUGVRIWKH1LEHOXQJHQIRXQGUHDG\DZDLWLQJWKHLUDUWLVWLFWUHDWPHQW%XWWKH
P\WKRORJ\RIWKH1HZ:RUOGZLWKDOOLWVSUHWW\DQGDJUHHDEOHQDLYHWHDIIRUGVKDUGO\HQRXJKHLWKHURIYDULHW\LQ
VLWXDWLRQRURIFRPSOH[LW\LQPRWLYHIRUDJUDQGHSLFRUDJHQXLQHWUDJHG\
%XWOLWWOHUHIOHFWLRQLVQHHGHGWRDVVXUHXVWKDWWKHLPDJLQDWLRQRIWKHEDUEDULDQZKRHLWKHUFDUULHVDZD\KLVZLIHE\
EUXWHIRUFHRUEX\VKHUIURPKHUUHODWLYHVDVKHZRXOGEX\DFRZFRXOGQHYHUKDYHRULJLQDWHGOHJHQGVLQZKLFK
PDLGHQVDUHORYLQJO\VROLFLWHGRULQZKLFKWKHLUIDYRXULVZRQE\WKHSHUIRUPDQFHRIGHHGVRIYDORXU7KHVHVWRULHV
RZHWKHLUH[LVWHQFHWRWKHURPDQWLFWXUQRIPLQGZKLFKKDVDOZD\VFKDUDFWHUL]HGWKH$U\DQZKRVHFLYLOL]DWLRQHYHQLQ
WKHWLPHVEHIRUHWKHGLVSHUVLRQRIKLVUDFHZDVVXIILFLHQWO\DGYDQFHGWRDOORZRIKLVHQWHUWDLQLQJVXFKFRPSDUDWLYHO\
H[DOWHGFRQFHSWLRQVRIWKHUHODWLRQVEHWZHHQPHQDQGZRPHQ7KHDEVHQFHRIWKHVHP\WKVIURPEDUEDULFIRONORUHLV
WKHUHIRUHMXVWZKDWPLJKWEHH[SHFWHGEXWLWLVDIDFWZKLFKPLOLWDWHVDJDLQVWDQ\SRVVLEOHK\SRWKHVLVRIWKHFRPPRQ
RULJLQRI$U\DQDQGEDUEDULFP\WKRORJ\,IWKHUHZHUHDQ\JHQHWLFUHODWLRQVKLSEHWZHHQ6LJXUGDQG,RVNHKDEHWZHHQ
+HUDNOHVDQG0LFKDERLWZRXOGEHKDUGWRWHOOZK\%U\QKLOGDQG,ROHVKRXOGKDYHGLVDSSHDUHGHQWLUHO\IURPRQHZKROH
JURXSRIOHJHQGVZKLOHUHWDLQHGLQVRPHIRUPRURWKHUWKURXJKRXWWKHZKROHRIWKHRWKHUJURXS2QWKHRWKHUKDQG
WKHUHVHPEODQFHVDERYHQRWLFHGEHWZHHQ$U\DQDQG$PHULFDQP\WKRORJ\IDOOYHU\IDUVKRUWRIWKHUHVHPEODQFHV
EHWZHHQWKHVWRULHVWROGLQGLIIHUHQWSDUWVRIWKH$U\DQGRPDLQ1REDUEDULFOHJHQGRIJHQXLQHEDUEDULFJURZWKKDV\HW
EHHQFLWHGZKLFKUHVHPEOHVDQ\$U\DQOHJHQGDVWKHVWRU\RI3XQFKNLQUHVHPEOHVWKHVWRU\RIWKH+HDUWOHVV*LDQW7KH
P\WKVRI0LFKDERDQG9LUDFRFKDDUHGLUHFWFRSLHVVRWRVSHDNRIQDWXUDOSKHQRPHQDMXVWDVLPLWDWLYHZRUGVDUHGLUHFW
FRSLHVRIQDWXUDOVRXQGV1HLWKHUWKH5HGVNLQQRUWKH,QGR(XURSHDQKDGDQ\FKRLFHDVWRWKHPDLQIHDWXUHVRIWKH
FDUHHURIKLVVRODUGLYLQLW\+HPXVWEHERUQRIWKH1LJKWRURIWKH'DZQPXVWWUDYHOZHVWZDUGPXVWVOD\KDUDVVLQJ
GHPRQV(OLPLQDWLQJWKHVHSRLQWVRIOLNHQHVVWKHUHVHPEODQFHEHWZHHQWKH$U\DQDQGEDUEDULFOHJHQGVLVDWRQFHDWDQ
HQG6XFKDQLGHQWLW\LQSRLQWRIGHWDLOVDVWKDWEHWZHHQWKHZRRGHQKRUVHZKLFKHQWHUV,OLRQDQGWKHKRUVHZKLFKEHDUV
6LJXUGLQWRWKHSODFHZKHUH%U\QKLOGLVLPSULVRQHGDQGWKH'UXLGLFVWHHGZKLFKOHDSVZLWK6FXOORJHRYHUWKHZDOOVRI
)LDFK¶VHQFKDQWHGFDVWOHLV,EHOLHYHQRZKHUHWREHIRXQGDIWHUZHOHDYH,QGR(XURSHDQWHUULWRU\
2XUFRQFOXVLRQWKHUHIRUHPXVWEHWKDWZKLOHWKHOHJHQGVRIWKH$U\DQDQGWKHQRQ$U\DQZRUOGVFRQWDLQFRPPRQ
P\WKLFDOHOHPHQWVWKHOHJHQGVWKHPVHOYHVDUHQRWRIFRPPRQRULJLQ7KHIDFWWKDWFHUWDLQP\WKLFDOLGHDVDUHSRVVHVVHG
DOLNHE\GLIIHUHQWUDFHVVKRZVWKDWLQHDFKFDVHDVLPLODUKXPDQLQWHOOLJHQFHKDVEHHQDWZRUNH[SODLQLQJVLPLODU
SKHQRPHQDEXWLQRUGHUWRSURYHDIDPLO\UHODWLRQVKLSEHWZHHQWKHFXOWXUHRIWKHVHGLIIHUHQWUDFHVZHQHHGVRPHWKLQJ
PRUHWKDQWKLV:HQHHGWRSURYHQRWRQO\DFRPPXQLW\RIP\WKLFDOLGHDVEXWDOVRDFRPPXQLW\EHWZHHQWKHVWRULHV
EDVHGXSRQWKHVHLGHDV:HPXVWVKRZQRWRQO\WKDW0LFKDERLVOLNH+HUDNOHVLQWKRVHVWULNLQJIHDWXUHVZKLFKWKH
FRQWHPSODWLRQRIVRODUSKHQRPHQDZRXOGQHFHVVDULO\VXJJHVWWRWKHLPDJLQDWLRQRIWKHSULPLWLYHP\WKPDNHUEXWDOVR
WKDWWKHWZRFKDUDFWHUVDUHVLPLODUO\FRQFHLYHGDQGWKDWWKHWZRFDUHHUVDJUHHLQVHHPLQJO\DUELWUDU\SRLQWVRIGHWDLODV
LVWKHFDVHLQWKHVWRULHVRI3XQFKNLQDQGWKH+HDUWOHVV*LDQW7KHPHUHIDFWWKDWVRODUKHURHVDOORYHUWKHZRUOGWUDYHO
LQDFHUWDLQSDWKDQGVOD\LPSVRIGDUNQHVVLVRIJUHDWYDOXHDVWKURZLQJOLJKWXSRQSULPHYDOKDELWVRIWKRXJKWEXWLWLV
RIQRYDOXHDVHYLGHQFHIRURUDJDLQVWDQDOOHJHGFRPPXQLW\RIFLYLOL]DWLRQEHWZHHQGLIIHUHQWUDFHV7KHVDPHLVWUXHRI
WKHVDFUHGQHVVXQLYHUVDOO\DWWDFKHGWRFHUWDLQQXPEHUV'U%OLQWRQ¶VRSLQLRQWKDWWKHVDQFWLW\RIWKHQXPEHUIRXULQ
QHDUO\DOOV\VWHPVRIP\WKRORJ\LVGXHWRDSULPLWLYHZRUVKLSRIWKHFDUGLQDOSRLQWVEHFRPHVYHU\SUREDEOHZKHQZH
UHFROOHFWWKDWWKHVLPLODUSUHHPLQHQFHRIVHYHQLVDOPRVWGHPRQVWUDEO\FRQQHFWHGZLWKWKHDGRUDWLRQRIWKHVXQPRRQ
DQGILYHYLVLEOHSODQHWVZKLFKKDVOHIWLWVUHFRUGLQWKHVWUXFWXUHDQGQRPHQFODWXUHRIWKH$U\DQDQG6HPLWLF
ZHHN>@
>@6HH+XPEROGW¶V.RVPRV7RP,,,SS$IHWLFKLVWLFUHJDUGIRUWKHFDUGLQDOSRLQWVKDVQRWDOZD\VEHHQ
DEVHQWIURPWKHPLQGVRISHUVRQVLQVWUXFWHGLQDKLJKHUWKHRORJ\DVZLWQHVVDZHOONQRZQSDVVDJHLQ,UHQDHXVDQGDOVR
WKHFXVWRPZHOOQLJKXQLYHUVDOLQ(XURSHRIEXLOGLQJ&KULVWLDQFKXUFKHVLQDOLQHHDVWDQGZHVW
,QYLHZRIWKHVHFRQVLGHUDWLRQVWKHFRPSDULVRQRIEDUEDULFP\WKVZLWKHDFKRWKHUDQGZLWKWKHOHJHQGVRIWKH$U\DQ
ZRUOGEHFRPHVGRXEO\LQWHUHVWLQJDVLOOXVWUDWLQJWKHVLPLODULW\LQWKHZRUNLQJVRIWKHXQWUDLQHGLQWHOOLJHQFHWKHZRUOG
RYHU,QRXUILUVWSDSHUZHVDZKRZWKHPRRQVSRWVKDYHEHHQYDULRXVO\H[SODLQHGE\,QGR(XURSHDQVDVDPDQZLWKD
WKRUQEXVKRUDVWZRFKLOGUHQEHDULQJDEXFNHWRIZDWHURQDSROH,Q&H\ORQLWLVVDLGWKDWDV6DN\DPXQLZDVRQHGD\
ZDQGHULQJKDOIVWDUYHGLQWKHIRUHVWDSLRXVKDUHPHWKLPDQGRIIHUHGLWVHOIWRKLPWREHVODLQDQGFRRNHGIRUGLQQHU
ZKHUHXSRQWKHKRO\%XGGKDVHWLWRQKLJKLQWKHPRRQWKDWIXWXUHJHQHUDWLRQVRIPHQPLJKWVHHLWDQGPDUYHODWLWV
SLHW\,QWKH6DPRDQ,VODQGVWKHVHGDUNSDWFKHVDUHVXSSRVHGWREHSRUWLRQVRIDZRPDQ¶VILJXUH$FHUWDLQZRPDQZDV
RQFHKDPPHULQJVRPHWKLQJZLWKDPDOOHWZKHQWKHPRRQDURVHORRNLQJVRPXFKOLNHDEUHDGIUXLWWKDWWKHZRPDQ
DVNHGLWWRFRPHGRZQDQGOHWKHUFKLOGHDWRIIDSLHFHRILWEXWWKHPRRQHQUDJHGDWWKHLQVXOWJREEOHGXSZRPDQ
PDOOHWDQGFKLOGDQGWKHUHLQWKHPRRQ¶VEHOO\\RXPD\VWLOOEHKROGWKHP$FFRUGLQJWRWKH+RWWHQWRWVWKH0RRQ
RQFHVHQWWKH+DUHWRLQIRUPPHQWKDWDVVKHGLHGDZD\DQGURVHDJDLQVRVKRXOGPHQGLHDQGDJDLQFRPHWROLIH%XW
WKHVWXSLG+DUHIRUJRWWKHSXUSRUWRIWKHPHVVDJHDQGFRPLQJGRZQWRWKHHDUWKSURFODLPHGLWIDUDQGZLGHWKDW
WKRXJKWKH0RRQZDVLQYDULDEO\UHVXVFLWDWHGZKHQHYHUVKHGLHGPDQNLQGRQWKHRWKHUKDQGVKRXOGGLHDQGJRWRWKH
'HYLO:KHQWKHVLOO\EUXWHUHWXUQHGWRWKHOXQDUFRXQWU\DQGWROGZKDWKHKDGGRQHWKH0RRQZDVVRDQJU\WKDWVKH
WRRNXSDQD[HDQGDLPHGDEORZDWKLVKHDGWRVSOLWLW%XWWKHD[HPLVVHGDQGRQO\FXWKLVOLSRSHQDQGWKDWZDVWKH
RULJLQRIWKH³KDUHOLS´0DGGHQHGE\WKHSDLQDQGWKHLQVXOWWKH+DUHIOHZDWWKH0RRQDQGDOPRVWVFUDWFKHGKHUH\HV
RXWDQGWRWKLVGD\VKHEHDUVRQKHUIDFHWKHPDUNVRIWKH+DUH¶VFODZV>@
>@%OHHN+RWWHQWRW)DEOHVDQG7DOHVS&RPSDUHWKH)LMLVWRU\RI5D9XODWKH0RRQDQG5D.DODYRWKH5DW
LQ7\ORU3ULPLWLYH&XOWXUH,
$JDLQHYHU\UHDGHURIWKHFODVVLFVNQRZVKRZ6HOHQHFDVW(QG\PLRQLQWRDSURIRXQGVOXPEHUEHFDXVHKHUHIXVHGKHU
ORYHDQGKRZDWVXQGRZQVKHXVHGWRFRPHDQGVWDQGDERYHKLPRQWKH/DWPLDQKLOODQGZDWFKKLPDVKHOD\DVOHHS
RQWKHPDUEOHVWHSVRIDWHPSOHKDOIKLGGHQDPRQJGURRSLQJHOPWUHHVRYHUZKLFKFODPEHUHGYLQHVKHDY\ZLWKGDUN
EOXHJUDSHV7KLVUHSUHVHQWVWKHULVLQJPRRQORRNLQJGRZQRQWKHVHWWLQJVXQLQ/DEUDGRUDVLPLODUSKHQRPHQRQKDV
VXJJHVWHGDVRPHZKDWGLIIHUHQWVWRU\$PRQJWKH(VTXLPDX[WKH6XQLVDPDLGHQDQGWKH0RRQLVKHUEURWKHUZKRLV
RYHUFRPHE\DZLFNHGSDVVLRQIRUKHU2QFHDVWKLVJLUOZDVDWDGDQFLQJSDUW\LQDIULHQG¶VKXWVRPHRQHFDPHXSDQG
WRRNKROGRIKHUE\WKHVKRXOGHUVDQGVKRRNKHUZKLFKLV DFFRUGLQJWRWKHOHJHQG WKH(VTXLPDX[PDQQHURIGHFODULQJ
RQH¶VORYH6KHFRXOGQRWWHOOZKRLWZDVLQWKHGDUNDQGVRVKHGLSSHGKHUKDQGLQVRPHVRRWDQGVPHDUHGRQHRIKLV
FKHHNVZLWKLW:KHQDOLJKWZDVVWUXFNLQWKHKXWVKHVDZWRKHUGLVPD\WKDWLWZDVKHUEURWKHUDQGZLWKRXWZDLWLQJ
WROHDUQDQ\PRUHVKHWRRNWRKHUKHHOV+HVWDUWHGLQKRWSXUVXLWDQGVRWKH\UDQWLOOWKH\JRWWRWKHHQGRIWKHZRUOG
WKHMXPSLQJRIISODFHZKHQWKH\ERWKMXPSHGLQWRWKHVN\7KHUHWKH0RRQVWLOOFKDVHVKLVVLVWHUWKH6XQDQGHYHU\
QRZDQGWKHQKHWXUQVKLVVRRW\FKHHNWRZDUGWKHHDUWKZKHQKHEHFRPHVVRGDUNWKDW\RXFDQQRWVHHKLP>@
>@7\ORU(DUO\+LVWRU\RI0DQNLQGS
$QRWKHUVWRU\ZKLFK,FLWHIURP0U7\ORUVKRZVWKDW0DOD\VDVZHOODV,QGR(XURSHDQVKDYHFRQFHLYHGRIWKH
FORXGVDVVZDQPDLGHQV,QWKHLVODQGRI&HOHEHVLWLVVDLGWKDW³VHYHQKHDYHQO\Q\PSKVFDPHGRZQIURPWKHVN\WR
EDWKHDQGWKH\ZHUHVHHQE\.DVLPEDKDZKRWKRXJKWILUVWWKDWWKH\ZHUHZKLWHGRYHVEXWLQWKHEDWKKHVDZWKDWWKH\
ZHUHZRPHQ7KHQKHVWROHRQHRIWKHWKLQUREHVWKDWJDYHWKHQ\PSKVWKHLUSRZHURIIO\LQJDQGVRKHFDXJKW8WDKDJL
WKHRQHZKRVHUREHKHKDGVWROHQDQGWRRNKHUIRUKLVZLIHDQGVKHERUHKLPDVRQ1RZVKHZDVFDOOHG8WDKDJLIURP
DVLQJOHZKLWHKDLUVKHKDGZKLFKZDVHQGRZHGZLWKPDJLFSRZHUDQGWKLVKDLUKHUKXVEDQGSXOOHGRXW$VVRRQDVKH
KDGGRQHLWWKHUHDURVHDJUHDWVWRUPDQG8WDKDJLZHQWXSWRKHDYHQ7KHFKLOGFULHGIRULWVPRWKHUDQG.DVLPEDKD
ZDVLQJUHDWJULHIDQGFDVWDERXWKRZKHVKRXOGIROORZ8WDKDJLXSLQWRWKHVN\´+HUHZHSDVVWRWKHP\WKRI-DFNDQG
WKH%HDQVWDON³$UDWJQDZHGWKHWKRUQVRIIWKHUDWWDQVDQG.DVLPEDKDFODPEHUHGXSE\WKHPZLWKKLVVRQXSRQKLV
EDFNWLOOKHFDPHWRKHDYHQ7KHUHDOLWWOHELUGVKRZHGKLPWKHKRXVHRI8WDKDJLDQGDIWHUYDULRXVDGYHQWXUHVKHWRRN
XSKLVDERGHDPRQJWKHJRGV´>@
>@7\ORURSFLWS
,Q6LEHULDZHILQGDOHJHQGRIVZDQPDLGHQVZKLFKDOVRUHPLQGVXVRIWKHVWRU\RIWKH+HDUWOHVV*LDQW$FHUWDLQ
6DPRMHGRQFHZHQWRXWWRFDWFKIR[HVDQGIRXQGVHYHQPDLGHQVVZLPPLQJLQDODNHVXUURXQGHGE\JORRP\SLQHWUHHV
ZKLOHWKHLUIHDWKHUGUHVVHVOD\RQWKHVKRUH+HFUHSWXSDQGVWROHRQHRIWKHVHGUHVVHVDQGE\DQGE\WKHVZDQPDLGHQ
FDPHWRKLPVKLYHULQJZLWKFROGDQGSURPLVLQJWREHFRPHKLVZLIHLIKHZRXOGRQO\JLYHKHUEDFNKHUJDUPHQWRI
IHDWKHUV7KHXQJDOODQWIHOORZKRZHYHUGLGQRWFDUHIRUDZLIHEXWDOLWWOHUHYHQJHZDVQRWXQVXLWHGWRKLVZD\RI
WKLQNLQJ7KHUHZHUHVHYHQUREEHUVZKRXVHGWRSURZODERXWWKHQHLJKERXUKRRGDQGZKRZKHQWKH\JRWKRPHILQGLQJ
WKHLUKHDUWVLQWKHZD\XVHGWRKDQJWKHPXSRQVRPHSHJVLQWKHWHQW2QHRIWKHVHUREEHUVKDGNLOOHGWKH6DPRMHG¶V
PRWKHUDQGVRKHSURPLVHGWRUHWXUQWKHVZDQPDLGHQ¶VGUHVVDIWHUVKHVKRXOGKDYHSURFXUHGIRUKLPWKHVHVHYHQ
KHDUWV6RVKHVWROHWKHKHDUWVDQGWKH6DPRMHGVPDVKHGVL[RIWKHPDQGWKHQZRNHXSWKHVHYHQWKUREEHUDQGWROG
KLPWRUHVWRUHKLVPRWKHUWROLIHRQSDLQRILQVWDQWGHDWK7KHQWKHUREEHUSURGXFHGDSXUVHFRQWDLQLQJWKHROGZRPDQ¶V
VRXODQGJRLQJWRWKHJUDYH\DUGVKRRNLWRYHUKHUERQHVDQGVKHUHYLYHGDWRQFH7KHQWKH6DPRMHGVPDVKHGWKH
VHYHQWKKHDUWDQGWKHUREEHUGLHGDQGVRWKHVZDQPDLGHQJRWEDFNKHUSOXPDJHDQGIOHZDZD\UHMRLFLQJ>@
>@%DULQJ*RXOG&XULRXV0\WKV,,
6ZDQPDLGHQVDUHDOVRDFFRUGLQJWR0U%DULQJ*RXOGIRXQGDPRQJWKH0LQXVVLQLDQ7DUWDUV%XWWKHUHWKH\DSSHDUDV
IRXOGHPRQVOLNHWKH*UHHN+DUSLHVZKRGHOLJKWLQGULQNLQJWKHEORRGRIPHQVODLQLQEDWWOH7KHUHDUHIRUW\RIWKHP
ZKRGDUNHQWKHZKROHILUPDPHQWLQWKHLUIOLJKWEXWVRPHWLPHVWKH\DOOFRDOHVFHLQWRRQHJUHDWEODFNVWRUPILHQGZKR
UDJHVIRUEORRGOLNHDZHUHZROI
,Q6RXWK$IULFDZHILQGWKHZHUHZROIKLPVHOI>@$FHUWDLQ+RWWHQWRWZDVRQFHWUDYHOOLQJZLWKD%XVKZRPDQDQGKHU
FKLOGZKHQWKH\SHUFHLYHGDWDGLVWDQFHDWURRSRIZLOGKRUVHV7KHPDQEHLQJKXQJU\DVNHGWKHZRPDQWRWXUQ
KHUVHOILQWRDOLRQHVVDQGFDWFKRQHRIWKHVHKRUVHVWKDWWKH\PLJKWHDWRILWZKHUHXSRQWKHZRPDQVHWGRZQKHUFKLOG
DQGWDNLQJRIIDVRUWRISHWWLFRDWPDGHRIKXPDQVNLQEHFDPHLQVWDQWO\WUDQVIRUPHGLQWRDOLRQHVVZKLFKUXVKHGDFURVV
WKHSODLQVWUXFNGRZQDZLOGKRUVHDQGODSSHGLWVEORRG7KHPDQFOLPEHGDWUHHLQWHUURUDQGFRQMXUHGKLVFRPSDQLRQ
WRUHVXPHKHUQDWXUDOVKDSH7KHQWKHOLRQHVVFDPHEDFNDQGSXWWLQJRQWKHVNLUWPDGHRIKXPDQVNLQUHDSSHDUHGDVD
ZRPDQDQGWRRNXSKHUFKLOGDQGWKHWZRIULHQGVUHVXPHGWKHLUMRXUQH\DIWHUPDNLQJDPHDORIWKHKRUVH¶VIOHVK>@
>@6SHDNLQJRIEHOLHIVLQWKH0DOD\$UFKLSHODJR0U:DOODFHVD\V³,WLVXQLYHUVDOO\EHOLHYHGLQ/RPERFNWKDW
VRPHPHQKDYHWKHSRZHUWRWXUQWKHPVHOYHVLQWRFURFRGLOHVZKLFKWKH\GRIRUWKHVDNHRIGHYRXULQJWKHLUHQHPLHV
DQGPDQ\VWUDQJHWDOHVDUHWROGRIVXFKWUDQVIRUPDWLRQV´:DOODFH0DOD\$UFKLSHODJR9RO,S
>@%OHHN+RWWHQWRW)DEOHVDQG7DOHVS
7KHZHUHZROIDOVRDSSHDUVLQ1RUWK$PHULFDGXO\IXUQLVKHGZLWKKLVZROIVNLQVDFNEXWQHLWKHULQ$PHULFDQRULQ
$IULFDLVKHWKHJHQXLQH(XURSHDQZHUHZROILQVSLUHGE\DGLDEROLFIUHQ]\DQGUDYHQLQJIRUKXPDQIOHVK7KHEDUEDULF
P\WKVWHVWLI\WRWKHEHOLHIWKDWPHQFDQEHFKDQJHGLQWREHDVWVRUKDYHLQVRPHFDVHVGHVFHQGHGIURPEHDVWDQFHVWRUV
EXWWKHDSSOLFDWLRQRIWKLVEHOLHIWRWKHH[SODQDWLRQRIDEQRUPDOFDQQLEDOFUDYLQJVVHHPVWRKDYHEHHQFRQILQHGWR
(XURSH7KHZHUHZROIRIWKH0LGGOH$JHVZDVQRWPHUHO\DWUDQVIRUPHGPDQKHZDVDQLQVDQHFDQQLEDOZKRVH
PRQVWURXVDSSHWLWHGXHWRWKHPDFKLQDWLRQVRIWKH'HYLOVKRZHGLWVSRZHURYHUKLVSK\VLFDORUJDQLVPE\FKDQJLQJWKH
VKDSHRILW7KHEDUEDULFZHUHZROILVWKHSURGXFWRIDORZHUDQGVLPSOHUNLQGRIWKLQNLQJ7KHUHLVQRGLDEROLVPDERXW
KLPIRUEDUEDULFUDFHVZKLOHEHOLHYLQJLQWKHH[LVWHQFHRIKXUWIXODQGPDOLFLRXVILHQGVKDYHQRWDVXIILFLHQWO\YLYLG
VHQVHRIPRUDODEQRUPLW\WRIRUPWKHFRQFHSWLRQRIGLDEROLVP$QGWKHFDQQLEDOFUDYLQJZKLFKWRWKHPHGLDHYDO
(XURSHDQZDVDSKHQRPHQRQVRVWUDQJHDVWRGHPDQGDP\WKRORJLFDOH[SODQDWLRQZRXOGQRWLPSUHVVWKHEDUEDULDQDV
HLWKHUYHU\H[FHSWLRQDORUYHU\EODPHZRUWK\
,QWKHIRONORUHRIWKH=XOXVRQHRIWKHPRVWTXLFNZLWWHGDQGLQWHOOLJHQWRI$IULFDQUDFHVWKHFDQQLEDOSRVVHVVHVPDQ\
IHDWXUHVLQFRPPRQZLWKWKH6FDQGLQDYLDQ7UROOZKRDOVRKDVDOLNLQJIRUKXPDQIOHVK$VZHVDZLQWKHSUHFHGLQJ
SDSHUWKH7UROOKDVYHU\OLNHO\GHULYHGVRPHRIKLVFKDUDFWHULVWLFVIURPUHPLQLVFHQFHVRIWKHEDUEDURXVUDFHVZKR
SUHFHGHGWKH$U\DQVLQ&HQWUDODQG1RUWKHUQ(XURSH,QOLNHPDQQHUWKHORQJKDLUHGFDQQLEDORI=XOXQXUVHU\OLWHUDWXUH
ZKRLVDOZD\VUHSUHVHQWHGDVEHORQJLQJWRDGLVWLQFWUDFHKDVEHHQVXSSRVHGWREHH[SODLQHGE\WKHH[LVWHQFHRI
LQIHULRUUDFHVFRQTXHUHGDQGGLVSODFHGE\WKH=XOXV1HYHUWKHOHVVDV'U&DOODZD\REVHUYHVQHLWKHUWKHORQJKDLUHG
PRXQWDLQFDQQLEDOVRI:HVWHUQ$IULFDQRUWKH)XODKVQRUWKHWULEHVRI(JKHGDOGHVFULEHGE\%DUWK³FDQEHFRQVLGHUHG
DVDQVZHULQJWRWKHGHVFULSWLRQRIORQJKDLUHGDVJLYHQLQWKH=XOXOHJHQGVRIFDQQLEDOVQHLWKHUFRXOGWKH\SRVVLEO\
KDYHIRUPHGWKHLUKLVWRULFDOEDVLV,WLVSHUIHFWO\FOHDUWKDWWKHFDQQLEDOVRIWKH=XOXOHJHQGVDUHQRWFRPPRQPHQ
WKH\DUHPDJQLILHGLQWRJLDQWVDQGPDJLFLDQVWKH\DUHUHPDUNDEO\VZLIWDQGHQGXULQJILHUFHDQGWHUULEOHZDUULRUV´
9HU\SUREDEO\WKH\PD\KDYHDP\WKLFDORULJLQLQPRGHVRIWKRXJKWDNLQWRWKRVHZKLFKEHJRWWKH3DQLVRIWKH9HGD
DQGWKH1RUWKHUQ7UROOV7KHSDUDOOHOLVPLVSHUKDSVWKHPRVWUHPDUNDEOHRQHZKLFKFDQEHIRXQGLQFRPSDULQJEDUEDULF
ZLWK$U\DQIRONORUH/LNHWKH3DQLVDQG7UROOVWKHFDQQLEDOVDUHUHSUHVHQWHGDVWKHIRHVRIWKHVRODUKHUR
8WKODNDQ\DQDZKRLVDOPRVWDVJUHDWDWUDYHOOHUDV2G\VVHXVDQGZKRVHSUHVHQFHRIPLQGDPLGWU\LQJFLUFXPVWDQFHVLV
QRWWREHVXUSDVVHGE\WKDWRIWKHLQFRPSDUDEOH%RRWV8WKODNDQ\DQDLVDVSUHFRFLRXVDV+HUDNOHVRU+HUPHV+H
VSHDNVEHIRUHKHLVERUQDQGQRVRRQHUKDVKHHQWHUHGWKHZRUOGWKDQKHEHJLQVWRRXWZLWRWKHUSHRSOHDQGJHW
SRVVHVVLRQRIWKHLUSURSHUW\+HZRUNVELWWHUUXLQIRUWKHFDQQLEDOVZKRZLWKDOOWKHLUVWUHQJWKDQGIOHHWQHVVDUHQR
EHWWHUHQGRZHGZLWKTXLFNZLWWKDQWKH7UROOVZKRP%RRWVLQYDULDEO\YLFWLPL]HV2QRQHRIKLVMRXUQH\V
8WKODNDQ\DQDIHOOLQZLWKDFDQQLEDO7KHLUJUHHWLQJVZHUHFRUGLDOHQRXJKDQGWKH\DWHDELWRIOHRSDUGWRJHWKHUDQG
EHJDQWREXLOGDKRXVHDQGNLOOHGDFRXSOHRIFRZVEXWWKHFDQQLEDO¶VFRZZDVOHDQZKLOH8WKODNDQ\DQD¶VZDVIDW
7KHQWKHFUDIW\WUDYHOOHUIHDULQJWKDWKLVFRPSDQLRQPLJKWLQVLVWXSRQKDYLQJWKHIDWFRZWXUQHGDQGVDLG³µ/HWWKH
KRXVHEHWKDWFKHGQRZWKHQZHFDQHDWRXUPHDW<RXVHHWKHVN\WKDWZHVKDOOJHWZHW¶7KHFDQQLEDOVDLGµ<RXDUH
ULJKWFKLOGRIP\VLVWHU\RXDUHDPDQLQGHHGLQVD\LQJOHWXVWKDWFKWKHKRXVHIRUZHVKDOOJHWZHW¶8WKODNDQ\DQD
VDLGµ'R\RXGRLWWKHQ,ZLOOJRLQVLGHDQGSXVKWKHWKDWFKLQJQHHGOHIRU\RXLQWKHKRXVH¶7KHFDQQLEDOZHQWXS
+LVKDLUZDVYHU\YHU\ORQJ8WKODNDQ\DQDZHQWLQVLGHDQGSXVKHGWKHQHHGOHIRUKLP+HWKDWFKHGLQWKHKDLURIWKH
FDQQLEDOW\LQJLWYHU\WLJKWO\KHNQRWWHGLWLQWRWKHWKDWFKFRQVWDQWO\WDNLQJLWE\VHSDUDWHORFNVDQGIDVWHQLQJLWILUPO\
WKDWLWPLJKWEHWLJKWO\IDVWHQHGWRWKHKRXVH´7KHQWKHURJXHZHQWRXWVLGHDQGEHJDQWRHDWRIWKHFRZZKLFKZDV
URDVWHG³7KHFDQQLEDOVDLGµ:KDWDUH\RXDERXWFKLOGRIP\VLVWHU"/HWXVMXVWILQLVKWKHKRXVHDIWHUZDUGVZHFDQGR
WKDWZHZLOOGRLWWRJHWKHU¶8WKODNDQ\DQDUHSOLHGµ&RPHGRZQWKHQ,FDQQRWJRLQWRWKHKRXVHDQ\PRUH7KH
WKDWFKLQJLVILQLVKHG¶7KHFDQQLEDODVVHQWHG:KHQKHWKRXJKWKHZDVJRLQJWRTXLWWKHKRXVHKHZDVXQDEOHWRTXLWLW
+HFULHGRXWVD\LQJµ&KLOGRIP\VLVWHUKRZKDYH\RXPDQDJHG\RXUWKDWFKLQJ"¶8WKODNDQ\DQDVDLGµ6HHWRLW
\RXUVHOI,KDYHWKDWFKHGZHOOIRU,VKDOOQRWKDYHDQ\GLVSXWH1RZ,DPDERXWWRHDWLQSHDFH,QRORQJHUGLVSXWHZLWK
DQ\ERG\IRU,DPQRZDORQHZLWKP\FRZ¶³6RWKHFDQQLEDOFULHGDQGUDYHGDQGDSSHDOHGLQYDLQWR8WKODNDQ\DQD¶V
VHQVHRIMXVWLFHXQWLOE\DQGE\³WKHVN\FDPHZLWKKDLOVWRQHVDQGOLJKWQLQJ8WKODNDQ\DQDWRRNDOOWKHPHDWLQWRWKH
KRXVHKHVWD\HGLQWKHKRXVHDQGOLWDILUH,WKDLOHGDQGUDLQHG7KHFDQQLEDOFULHGRQWKHWRSRIWKHKRXVHKHZDV
VWUXFNZLWKWKHKDLOVWRQHVDQGGLHGWKHUHRQWKHKRXVH,WFOHDUHG8WKODNDQ\DQDZHQWRXWDQGVDLGµ8QFOHMXVWFRPH
GRZQDQGFRPHWRPH,WKDVEHFRPHFOHDU,WQRORQJHUUDLQVDQGWKHUHLVQRPRUHKDLOQHLWKHULVWKHUHDQ\PRUH
OLJKWQLQJ:K\DUH\RXVLOHQW"¶6R8WKODNDQ\DQDDWHKLVFRZDORQHXQWLOKHKDGILQLVKHGLW+HWKHQZHQWRQKLV
ZD\´>@
>@&DOODZD\=XOX1XUVHU\7DOHVSS
,QDQRWKHU=XOXOHJHQGDJLUOLVVWROHQE\FDQQLEDOVDQGVKXWXSLQWKHURFN,WVKHOLNDQWXQMDPELOLZKLFKOLNHWKHURFN
RIWKH)RUW\7KLHYHVRSHQVDQGVKXWVDWWKHFRPPDQGRIWKRVHZKRXQGHUVWDQGLWVVHFUHW6KHJHWVSRVVHVVLRQRIWKH
VHFUHWDQGHVFDSHVDQGZKHQWKHPRQVWHUVSXUVXHKHUVKHWKURZVRQWKHJURXQGDFDODEDVKIXOORIVHVDPHZKLFKWKH\
VWRSWRHDW$WODVWJHWWLQJWLUHGRIUXQQLQJVKHFOLPEVDWUHHDQGWKHUHVKHILQGVKHUEURWKHUZKRZDUQHGE\DGUHDP
KDVFRPHRXWWRORRNIRUKHU7KH\DVFHQGWKHWUHHWRJHWKHUXQWLOWKH\FRPHWRDEHDXWLIXOFRXQWU\ZHOOVWRFNHGZLWKIDW
R[HQ7KH\NLOODQR[DQGZKLOHLWVIOHVKLVURDVWLQJWKH\DPXVHWKHPVHOYHVE\PDNLQJDVWRXWWKRQJRILWVKLGH%\DQG
E\RQHRIWKHFDQQLEDOVVPHOOLQJWKHFRRNLQJPHDWFRPHVWRWKHIRRWRIWKHWUHHDQGORRNLQJXSGLVFRYHUVWKHER\DQG
JLUOLQWKHVN\FRXQWU\7KH\LQYLWHKLPXSWKHUHWRVKDUHLQWKHLUIHDVWDQGWKURZKLPDQHQGRIWKHWKRQJE\ZKLFKWR
FOLPEXS:KHQWKHFDQQLEDOLVGDQJOLQJPLGZD\EHWZHHQHDUWKDQGKHDYHQWKH\OHWJRWKHURSHDQGGRZQKHIDOOV
ZLWKDWHUULEOHFUDVK>@
>@&DOODZD\RSFLWSSFIDVLPLODUVWRU\LQZKLFKWKHOLRQLVIRROHGE\WKHMDFNDO%OHHNRSFLWS,
RPLWWKHVHTXHORIWKHWDOH
,QWKLVVWRU\WKHHQFKDQWHGURFNRSHQHGE\DWDOLVPDQLFIRUPXODEULQJVXVDJDLQLQWRFRQWDFWZLWK,QGR(XURSHDQIRON
ORUH$QGWKDWWKHFRQFHSWLRQKDVLQERWKFDVHVEHHQVXJJHVWHGE\WKHVDPHQDWXUDOSKHQRPHQRQLVUHQGHUHGSUREDEOH
E\DQRWKHU=XOXWDOHLQZKLFKWKHFDQQLEDO¶VFDYHLVRSHQHGE\DVZDOORZZKLFKIOLHVLQWKHDLU+HUHZHKDYHWKH
HOHPHQWVRIDJHQXLQHOLJKWQLQJP\WK:HVHHWKDWDPRQJWKHVH$IULFDQEDUEDULDQVDVZHOODVDPRQJRXURZQ
IRUHIDWKHUVWKHFORXGVKDYHEHHQFRQFHLYHGDVELUGVFDUU\LQJWKHOLJKWQLQJZKLFKFDQFOHDYHWKHURFNV,Q$PHULFDZH
ILQGWKHVDPHQRWLRQSUHYDOHQW7KH'DNRWDKVH[SODLQWKHWKXQGHUDV³WKHVRXQGRIWKHFORXGELUGIODSSLQJKLVZLQJV´
DQGWKH&DULEVGHVFULEHWKHOLJKWQLQJDVDSRLVRQHGGDUWZKLFKWKHELUGEORZVWKURXJKDKROORZUHHGDIWHUWKH&DULE
VW\OHRIVKRRWLQJ>@2QWKHRWKHUKDQGWKH.DPWFKDWNDQVNQRZQRWKLQJRIDFORXGELUGEXWH[SODLQWKHOLJKWQLQJDV
VRPHWKLQJDQDORJRXVWRWKHIODPHVRIDYROFDQR7KH.DPWFKDWNDQVVD\WKDWZKHQWKHPRXQWDLQJREOLQVKDYHJRWWKHLU
VWRYHVZHOOKHDWHGXSWKH\WKURZRYHUERDUGZLWKWUXHEDUEDULFVKLIWOHVVQHVVDOOWKHEUDQGVQRWQHHGHGIRULPPHGLDWH
XVHZKLFKPDNHVDYROFDQLFHUXSWLRQ6RZKHQLWLVVXPPHURQHDUWKLWLVZLQWHULQKHDYHQDQGWKHJRGVDIWHUKHDWLQJ
XSWKHLUVWRYHVWKURZDZD\WKHLUVSDUHNLQGOLQJZRRGZKLFKPDNHVWKHOLJKWQLQJ>@
>@%ULQWRQRSFLWS
>@7\ORURSFLWS
:KHQWUHDWLQJRI,QGR(XURSHDQVRODUP\WKVZHVDZWKHXQYDU\LQJXQUHVWLQJFRXUVHRIWKHVXQYDULRXVO\H[SODLQHGDV
GXHWRWKHVXEMHFWLRQRI+HUDNOHVWR(XU\VWKHXVWRWKHDQJHURI3RVHLGRQDW2G\VVHXVRUWRWKHFXUVHODLGXSRQWKH
:DQGHULQJ-HZ7KHEDUEDULFPLQGKDVZRUNHGDWWKHVDPHSUREOHPEXWWKHH[SODQDWLRQVZKLFKLWKDVJLYHQDUHPRUH
FKLOGOLNHDQGPRUHJURWHVTXH$3RO\QHVLDQP\WKWHOOVKRZWKH6XQXVHGWRUDFHWKURXJKWKHVN\VRIDVWWKDWPHQFRXOG
QRWJHWHQRXJKGD\OLJKWWRKXQWJDPHIRUWKHLUVXEVLVWHQFH%\DQGE\DQLQYHQWLYHJHQLXVQDPHG0DXLFRQFHLYHGWKH
LGHDRIFDWFKLQJWKH6XQLQDQRRVHDQGPDNLQJKLPJRPRUHGHOLEHUDWHO\+HSODLWHGURSHVDQGPDGHDVWURQJQHWDQG
DUPLQJKLPVHOIZLWKWKHMDZERQHRIKLVDQFHVWUHVV0XULUDQJDZKHQXDFDOOHGWRJHWKHUDOOKLVEUHWKUHQDQGWKH\
MRXUQH\HGWRWKHSODFHZKHUHWKH6XQULVHVDQGWKHUHVSUHDGWKHQHW:KHQWKH6XQFDPHXSKHVWXFNKLVKHDGDQGIRUH
SDZVLQWRWKHQHWDQGZKLOHWKHEURWKHUVWLJKWHQHGWKHURSHVVRWKDWWKH\FXWKLPDQGPDGHKLPVFUHDPIRUPHUF\0DXL
EHDWKLPZLWKWKHMDZERQHXQWLOKHEHFDPHVRZHDNWKDWHYHUVLQFHKHKDVRQO\EHHQDEOHWRFUDZOWKURXJKWKHVN\
$FFRUGLQJWRDQRWKHU3RO\QHVLDQP\WKWKHUHZDVRQFHDJUXPEOLQJ5DGLFDOZKRQHYHUFRXOGEHVDWLVILHGZLWKWKHZD\
LQZKLFKWKLQJVDUHPDQDJHGRQWKLVHDUWK7KLVEROG5DGLFDOVHWRXWWREXLOGDVWRQHKRXVHZKLFKVKRXOGODVWIRUHYHU
EXWWKHGD\VZHUHVRVKRUWDQGWKHVWRQHVVRKHDY\WKDWKHGHVSDLUHGRIHYHUDFFRPSOLVKLQJKLVSURMHFW2QHQLJKWDVKH
OD\DZDNHWKLQNLQJWKHPDWWHURYHULWRFFXUUHGWRKLPWKDWLIKHFRXOGFDWFKWKH6XQLQDQHWKHFRXOGKDYHDVPXFK
GD\OLJKWDVZDVQHHGIXOLQRUGHUWRILQLVKKLVKRXVH6RKHERUURZHGDQRRVHIURPWKHJRG,WXDQGLWEHLQJDXWXPQ
ZKHQWKH6XQJHWVVOHHS\DQGVWXSLGKHHDVLO\FDXJKWWKHOXPLQDU\7KH6XQFULHGWLOOKLVWHDUVPDGHDJUHDWIUHVKHW
ZKLFKQHDUO\GURZQHGWKHLVODQGEXWLWZDVRIQRXVHWKHUHKHLVWHWKHUHGWRWKLVGD\
6LPLODUVWRULHVDUHPHWZLWKLQ1RUWK$PHULFD$'RJ5LE,QGLDQRQFHFKDVHGDVTXLUUHOXSDWUHHXQWLOKHUHDFKHGWKH
VN\7KHUHKHVHWDVQDUHIRUWKHVTXLUUHODQGFOLPEHGGRZQDJDLQ1H[WGD\WKH6XQZDVFDXJKWLQWKHVQDUHDQGQLJKW
FDPHRQDWRQFH7KDWLVWRVD\WKHVXQZDVHFOLSVHG³6RPHWKLQJZURQJXSWKHUH´WKRXJKWWKH,QGLDQ³,PXVWKDYH
FDXJKWWKH6XQ´DQGVRKHVHQWXSHYHUVRPDQ\DQLPDOVWRUHOHDVHWKHFDSWLYH7KH\ZHUHDOOEXUQHGWRDVKHVEXWDW
ODVWWKHPROHJRLQJXSDQGEXUURZLQJRXWWKURXJKWKH*5281'2)7+(6.<  VXFFHHGHGLQJQDZLQJDVXQGHUWKH
FRUGVRIWKHVQDUH-XVWDVLWWKUXVWLWVKHDGRXWWKURXJKWKHRSHQLQJPDGHLQWKHVN\JURXQGLWUHFHLYHGDIODVKRIOLJKW
ZKLFKSXWLWVH\HVRXWDQGWKDWLVZK\WKHPROHLVEOLQG7KH6XQJRWDZD\EXWKDVHYHUVLQFHWUDYHOOHGPRUH
GHOLEHUDWHO\>@
>@7\ORURSFLWSS
7KHVHVXQP\WKVPDQ\PRUHRIZKLFKDUHWREHIRXQGFROOHFWHGLQ0U7\ORU¶VH[FHOOHQWWUHDWLVHRQ³7KH(DUO\+LVWRU\
RI0DQNLQG´ZHOOLOOXVWUDWHERWKWKHVLPLODULW\DQGWKHGLYHUVLW\RIWKHUHVXOWVREWDLQHGE\WKHSULPLWLYHPLQGLQ
GLIIHUHQWWLPHVDQGFRXQWULHVZKHQHQJDJHGXSRQVLPLODUSUREOHPV1RRQHZRXOGWKLQNRIUHIHUULQJWKHVHVWRULHVWRD
FRPPRQWUDGLWLRQDORULJLQZLWKWKHP\WKVRI+HUDNOHVDQG2G\VVHXV\HWERWKFODVVHVRIWDOHVZHUHGHYLVHGWRH[SODLQ
WKHVDPHSKHQRPHQRQ%RWKWRWKH$U\DQDQGWRWKH3RO\QHVLDQWKHVWHDGIDVWEXWGHOLEHUDWHMRXUQH\RIWKHVXQWKURXJK
WKHILUPDPHQWZDVDVWUDQJHFLUFXPVWDQFHZKLFKFDOOHGIRUH[SODQDWLRQEXWZKLOHWKHPHDJUHLQWHOOLJHQFHRIWKH
EDUEDULDQFRXOGRQO\DWWDLQWRWKHTXDLQWFRQFHSWLRQRIDPDQWKURZLQJDQRRVHRYHUWKHVXQ¶VKHDGWKHULFK
LPDJLQDWLRQRIWKH,QGR(XURSHDQFUHDWHGWKHQREOHSLFWXUHRI+HUDNOHVGRRPHGWRVHUYHWKHVRQRI6WKHQHORVLQ
DFFRUGDQFHZLWKWKHUHVLVWOHVVGHFUHHRIIDWH
$QRWKHUZRUOGZLGHP\WKZKLFKVKRZVKRZVLPLODUDUHWKHPHQWDOKDELWVRIXQFLYLOL]HGPHQLVWKHP\WKRIWKH
WRUWRLVH7KH+LQGXQRWLRQRIDJUHDWWRUWRLVHWKDWOLHVEHQHDWKWKHHDUWKDQGNHHSVLWIURPIDOOLQJLVIDPLOLDUWRHYHU\
UHDGHU$FFRUGLQJWRRQHDFFRXQWWKLVWRUWRLVHVZLPPLQJLQWKHSULPHYDORFHDQEHDUVWKHHDUWKRQKLVEDFNEXWE\
DQGE\ZKHQWKHJRGVJHWUHDG\WRGHVWUR\PDQNLQGWKHWRUWRLVHZLOOJURZZHDU\DQGVLQNXQGHUKLVORDGDQGWKHQWKH
HDUWKZLOOEHRYHUZKHOPHGE\DGHOXJH$QRWKHUOHJHQGWHOOVXVWKDWZKHQWKHJRGVDQGGHPRQVWRRN0RXQW0DQGDUD
IRUDFKXUQLQJVWLFNDQGFKXUQHGWKHRFHDQWRPDNHDPEURVLDWKHJRG9LVKQXWRRNRQWKHIRUPRIDWRUWRLVHDQGOD\DW
WKHERWWRPRIWKHVHDDVDSLYRWIRUWKHZKLUOLQJPRXQWDLQWRUHVWXSRQ%XWWKHVHYHUVLRQVRIWKHP\WKDUHQRW
SULPLWLYH,QWKHRULJLQDOFRQFHSWLRQWKHZRUOGLVLWVHOIDJLJDQWLFWRUWRLVHVZLPPLQJLQDERXQGOHVVRFHDQWKHIODW
VXUIDFHRIWKHHDUWKLVWKHORZHUSODWHZKLFKFRYHUVWKHUHSWLOH¶VEHOO\WKHURXQGHGVKHOOZKLFKFRYHUVKLVEDFNLVWKH
VN\DQGWKHKXPDQUDFHOLYHVDQGPRYHVDQGKDVLWVEHLQJLQVLGHRIWKHWRUWRLVH1RZDV0U7\ORUKDVSRLQWHGRXW
PDQ\WULEHVRI5HGVNLQVKROGVXEVWDQWLDOO\WKHVDPHWKHRU\RIWKHXQLYHUVH7KH\UHJDUGWKHWRUWRLVHDVWKHV\PERORI
WKHZRUOGDQGDGGUHVVLWDVWKHPRWKHURIPDQNLQG2QFHEHIRUHWKHHDUWKZDVPDGHWKHNLQJRIKHDYHQTXDUUHOOHG
ZLWKKLVZLIHDQGJDYHKHUVXFKDWHUULEOHNLFNWKDWVKHIHOOGRZQLQWRWKHVHD)RUWXQDWHO\DWRUWRLVHUHFHLYHGKHURQKLV
EDFNDQGSURFHHGHGWRUDLVHXSWKHHDUWKXSRQZKLFKWKHKHDYHQO\ZRPDQEHFDPHWKHPRWKHURIPDQNLQG7KHVHILUVW
PHQKDGZKLWHIDFHVDQGWKH\XVHGWRGLJLQWKHJURXQGWRFDWFKEDGJHUV2QHGD\D]HDORXVEXUURZHUWKUXVWKLVNQLIH
WRRIDUDQGVWDEEHGWKHWRUWRLVHZKLFKLPPHGLDWHO\VDQNLQWRWKHVHDDQGGURZQHGDOOWKHKXPDQUDFHVDYHRQH
PDQ>@,Q)LQQLVKP\WKRORJ\WKHZRUOGLVQRWDWRUWRLVHEXWLWLVDQHJJRIZKLFKWKHZKLWHSDUWLVWKHRFHDQWKH
\RONLVWKHHDUWKDQGWKHDUFKHGVKHOOLVWKHVN\,Q,QGLDWKLVLVWKHPXQGDQHHJJRI%UDKPDDQGLWUHDSSHDUVDPRQJ
WKH<RUXEDVDVDSDLURIFDODEDVKHVSXWWRJHWKHUOLNHR\VWHUVKHOOVRQHPDNLQJDGRPHRYHUWKHRWKHU,Q=XOXODQGWKH
HDUWKLVDKXJHEHDVWFDOOHG8VLORVLPDSXQGXZKRVHIDFHLVDURFNDQGZKRVHPRXWKLVYHU\ODUJHDQGEURDGDQGUHG
³LQVRPHFRXQWULHVZKLFKZHUHRQKLVERG\LWZDVZLQWHUDQGLQRWKHUVLWZDVHDUO\KDUYHVW´0DQ\EURDGULYHUVIORZ
RYHUKLVEDFNDQGKHLVFRYHUHGZLWKIRUHVWVDQGKLOOVDVLVLQGLFDWHGLQKLVQDPHZKLFKPHDQV³WKHUXJRVHRUNQRWW\
EDFNHGEHDVW´,QWKLVJURXSRIFRQFHSWLRQVPD\EHVHHQWKHRULJLQRI6LQGEDG¶VJUHDWILVKZKLFKOD\VWLOOVRORQJWKDW
VDQGDQGFOD\JUDGXDOO\DFFXPXODWHGXSRQLWVEDFNDQGDWODVWLWEHFDPHFRYHUHGZLWKWUHHV$QGODVWO\SDVVLQJIURP
EDUEDULFIRONORUHDQGIURPWKH$UDELDQ1LJKWVWRWKHKLJKHVWOHYHORI,QGR(XURSHDQLQWHOOLJHQFHGRZHQRWILQGERWK
3ODWRDQG.HSOHUDPXVLQJWKHPVHOYHVZLWKVSHFXODWLRQVLQZKLFKWKHHDUWKILJXUHVDVDVWXSHQGRXVDQLPDO"
>@7\ORURSFLWS1RYHPEHU

9,-89(1786081',
>@
>@-XYHQWXV0XQGL7KH*RGVDQG0HQRIWKH+HURLF$JH%\WKH5W+RQ:LOOLDP(ZDUW*ODGVWRQH%RVWRQ
/LWWOH%URZQ &R
7:(/9(\HDUVDJRZKHQLQFRQFOXGLQJKLV³6WXGLHVRQ+RPHU
DQGWKH+RPHULF$JH´0U*ODGVWRQHDSSOLHGWRKLPVHOIWKH
ZDUQLQJDGGUHVVHGE\$JDPHPQRQWRWKHSULHVWRI$SROOR
³/HWQRW1HPHVLVFDWFKPHE\WKHVZLIWVKLSV´
KHZRXOGVHHPWRKDYHLQWHQGHGLWDVDODVWIDUHZHOOWR
FODVVLFDOVWXGLHV<HWZKDWHYHUKLVLQWHQWLRQVPD\KDYHEHHQ
WKH\KDYH\LHOGHGWRWKHVZHHWGHVLUHRIUHYLVLWLQJIDPLOLDU
JURXQGDGHVLUHDVVWURQJLQWKHEUHDVWRIWKHFODVVLFDO
VFKRODUDVZDVWKH\HDUQLQJZKLFKOHG2G\VVHXVWRUHMHFWWKH
SURIIHUHGJLIWRILPPRUWDOLW\VRWKDWKHPLJKWEXWRQFHPRUH
EHKROGWKHZUHDWKHGVPRNHFXUOLQJDERXWWKHURRIVRIKLV
QDWLYH,WKDND,QWKLVQHZWUHDWLVHRQWKH³<RXWKRIWKH
:RUOG´0U*ODGVWRQHGLVFXVVHVWKHVDPHTXHVWLRQVZKLFKZHUH
WUHDWHGLQKLVHDUOLHUZRUNDQGWKHPDLQFRQFOXVLRQVUHDFKHG
LQWKH³6WXGLHVRQ+RPHU´DUHKHUHVROLWWOHPRGLILHGZLWK
UHIHUHQFHWRWKHUHFHQWSURJUHVVRIDUFKDHRORJLFDOLQTXLULHV
WKDWWKHERRNFDQKDUGO\EHVDLGWRKDYHKDGDQ\RWKHUUHDVRQIRUDSSHDULQJVDYHWKHGHVLUHRIORLWHULQJE\WKHVKLSVRI
WKH$UJLYHVDQGRIUHWXUQLQJWKLWKHUDVRIWHQDVSRVVLEOH
7KHWLWOHVHOHFWHGE\0U*ODGVWRQHIRUKLVQHZZRUNLVHLWKHUDYHU\DSSURSULDWHRQHRUDVWUDQJHPLVQRPHUDFFRUGLQJ
WRWKHSRLQWRIYLHZIURPZKLFKLWLVUHJDUGHG6XFKEHLQJWKHFDVHZHPLJKWUHDGLO\DFTXLHVFHLQLWVXVHDQGSDVVLWE\
ZLWKRXWFRPPHQWWUXVWLQJWKDWWKHDXWKRUXQGHUVWRRGKLPVHOIZKHQKHDGRSWHGLWZHUHLWQRWWKDWE\LQFLGHQWDO
UHIHUHQFHVDQGHVSHFLDOO\E\KLVDOOXVLRQVWRWKHOHJHQGDU\OLWHUDWXUHRIWKH-HZV0U*ODGVWRQHVKRZVWKDWKHPHDQV
PRUHE\WKHWLWOHWKDQLWFDQIDLUO\EHPDGHWRH[SUHVV$QDXWKRUZKRVHHNVWRGHWHUPLQHSUHKLVWRULFHYHQWVE\
UHIHUHQFHVWR.DGPRVDQG'DQDRVDQG$EUDKDPLVDWRQFHOLDEOHWRWKHVXVSLFLRQRIKROGLQJYHU\LQDGHTXDWHYLHZVDV
WRWKHFKDUDFWHURIWKHHSRFKZKLFKPD\SURSHUO\EHWHUPHGWKH³\RXWKRIWKHZRUOG´2IWHQLQUHDGLQJ0U*ODGVWRQH
ZHDUHUHPLQGHGRI5HQDQ¶VVWUDQJHVXJJHVWLRQWKDWDQH[SORUDWLRQRIWKH+LQGX.XVKWHUULWRU\ZKHQFHSUREDEO\FDPH
WKHSULPLWLYH$U\DQVPLJKWWKURZVRPHQHZOLJKWRQWKHRULJLQRIODQJXDJH1RWKLQJFRXOGZHOOEHPRUHIXWLOH7KH
SULPLWLYH$U\DQODQJXDJHKDVDOUHDG\EHHQSDUWO\UHFRQVWUXFWHGIRUXVLWVJUDPPDWLFDOIRUPVDQGV\QWDFWLFGHYLFHVDUH
EHFRPLQJIDPLOLDUWRVFKRODUVRQHJUHDWSKLORORJLVWKDVHYHQFRPSRVHGDWDOHLQLW\HWLQVWXG\LQJWKLVORQJEXULHG
GLDOHFWZHDUHQRWPXFKQHDUHUWKHILUVWEHJLQQLQJVRIKXPDQVSHHFKWKDQLQVWXG\LQJWKH*UHHNRI+RPHUWKH6DQVNULW
RIWKH9HGDVRUWKH8PEULDQRIWKH,JRYLQH,QVFULSWLRQV7KH$U\DQPRWKHUWRQJXHKDGSDVVHGLQWRWKHODVWRIWKHWKUHH
VWDJHVRIOLQJXLVWLFJURZWKORQJEHIRUHWKHEUHDNXSRIWKHWULEDOFRPPXQLWLHVLQ$U\DQDYDHGMRDQGDWWKDWHDUO\GDWH
SUHVHQWHGDOHVVSULPLWLYHVWUXFWXUHWKDQLVWREHVHHQLQWKH&KLQHVHRUWKH0RQJROLDQRIRXURZQWLPHV6RWKHVWDWHRI
VRFLHW\GHSLFWHGLQWKH+RPHULFSRHPVDQGZHOOLOOXVWUDWHGE\0U*ODGVWRQHLVPDQ\GHJUHHVOHVVSULPLWLYHWKDQWKDW
ZKLFKLVUHYHDOHGWRXVE\WKHDUFKDHRORJLFDOUHVHDUFKHVHLWKHURI3LFWHWDQG:LQGLVFKPDQQRURI7\ORU/XEERFNDQG
0¶/HQQDQ:HVKDOOJDWKHUHYLGHQFHVRIWKLVDVZHSURFHHG0HDQZKLOHOHWXVUHPHPEHUWKDWDWOHDVWHOHYHQWKRXVDQG
\HDUVEHIRUHWKH+RPHULFDJHPHQOLYHGLQFRPPXQLWLHVDQGPDQXIDFWXUHGSRWWHU\RQWKHEDQNVRIWKH1LOHDQGOHWXV
QRWOHDYHZKROO\RXWRIVLJKWWKDWPRUHGLVWDQWSHULRGSHUKDSVDPLOOLRQ\HDUVDJRZKHQVSDUVHWULEHVRIVDYDJHPHQ
FRQWHPSRUDQHRXVZLWKWKHPDPPRWKVRI6LEHULDDQGWKHFDYHWLJHUVRI%ULWDLQVWUXJJOHGDJDLQVWWKHLQWHQVHFROGRIWKH
JODFLDOZLQWHUV
1HYHUWKHOHVVWKRXJKWKH+RPHULFDJHDSSHDUVWREHDODWHRQHZKHQFRQVLGHUHGZLWKUHIHUHQFHWRWKHZKROHFDUHHURI
WKHKXPDQUDFHWKHUHLVDSRLQWRIYLHZIURPZKLFKLWPD\EHMXVWO\UHJDUGHGDVWKH³\RXWKRIWKHZRUOG´+RZHYHU
ORQJPDQPD\KDYHH[LVWHGXSRQWKHHDUWKKHEHFRPHVWKRURXJKO\DQGGLVWLQFWO\KXPDQLQWKHH\HVRIWKHKLVWRULDQ
RQO\DWWKHHSRFKDWZKLFKKHEHJDQWRFUHDWHIRUKLPVHOIDOLWHUDWXUH$VIDUEDFNDVZHFDQWUDFHWKHSURJUHVVRIWKH
KXPDQUDFHFRQWLQXRXVO\E\PHDQVRIWKHZULWWHQZRUGVRIDUGRZHIHHODWUXHKLVWRULFDOLQWHUHVWLQLWVIRUWXQHVDQG
SXUVXHRXUVWXGLHVZLWKDV\PSDWK\ZKLFKWKHPHUHODSVHRIWLPHLVSRZHUOHVVWRLPSDLU%XWWKHSULPHYDOPDQZKRVH
KLVWRU\QHYHUKDVEHHQDQGQHYHUZLOOEHZULWWHQZKRVHFDUHHURQWKHHDUWKGDWHOHVVDQGFKDUWOHVVFDQEHGLPO\
UHYHDOHGWRXVRQO\E\SDODHRQWRORJ\H[FLWHVLQXVDYHU\GLIIHUHQWIHHOLQJ7KRXJKZLWKWKHNHHQHVWLQWHUHVWZHUDQVDFN
HYHU\QRRNDQGFRUQHURIWKHHDUWK¶VVXUIDFHIRULQIRUPDWLRQDERXWKLPZHDUHDOOWKHZKLOHDZDUHWKDWZKDWZHDUH
VWXG\LQJLVKXPDQ]RRORJ\DQGQRWKLVWRU\2XU1HDQGHUWKDOPDQLVDVSHFLPHQQRWDFKDUDFWHU:HFDQQRWDVNKLP
WKH+RPHULFTXHVWLRQZKDWLVKLVQDPHZKRZHUHKLVSDUHQWVDQGKRZGLGKHJHWZKHUHZHIRXQGKLP+LVODQJXDJH
KDVGLHGZLWKKLPDQGKHFDQUHQGHUQRDFFRXQWRIKLPVHOI:HFDQRQO\UHJDUGKLPVSHFLILFDOO\DV+RPR$QWKURSRVD
FUHDWXUHRIELJJHUEUDLQWKDQKLVFRQJHQHU+RPR3LWKHNRVDQGRIYDVWO\JUHDWHUSURPLVH%XWWKLVZHVD\LVSK\VLFDO
VFLHQFHDQGQRWKLVWRU\
)RUWKHKLVWRULDQWKHUHIRUHZKRVWXGLHVPDQLQKLVYDULRXVVRFLDOUHODWLRQVWKH\RXWKRIWKHZRUOGLVWKHSHULRGDW
ZKLFKOLWHUDWXUHEHJLQV:HUHJDUGWKHKLVWRU\RIWKHZHVWHUQZRUOGDVEHJLQQLQJDERXWWKHWHQWKFHQWXU\EHIRUHWKH
&KULVWLDQHUDEHFDXVHDWWKDWGDWHZHILQGOLWHUDWXUHLQ*UHHFHDQG3DOHVWLQHEHJLQQLQJWRWKURZGLUHFWOLJKWXSRQWKH
VRFLDODQGLQWHOOHFWXDOFRQGLWLRQRIDSRUWLRQRIPDQNLQG7KDWJUHDWHPSLUHVULFKLQKLVWRULFDOLQWHUHVWDQGLQPDWHULDOV
IRUVRFLRORJLFDOJHQHUDOL]DWLRQVKDGH[LVWHGIRUFHQWXULHVEHIRUHWKDWGDWHLQ(J\SWDQG$VV\ULDZHGRQRWGRXEWVLQFH
WKH\DSSHDUDWWKHGDZQRIKLVWRU\ZLWKDOOWKHPDUNVRIJUHDWDQWLTXLW\EXWWKHRQO\VWHDG\KLVWRULFDOOLJKWWKURZQXSRQ
WKHPVKLQHVIURPWKHSDJHVRI*UHHNDQG+HEUHZDXWKRUVDQGWKHVHNQRZWKHPRQO\LQWKHLUODWHVWSHULRG)RU
LQIRUPDWLRQFRQFHUQLQJWKHLUHDUO\FDUHHUVZHPXVWORRNQRWWRKLVWRU\EXWWROLQJXLVWLFDUFKDHRORJ\DVFLHQFHZKLFK
FDQKHOSXVWRJHQHUDOUHVXOWVEXWFDQQRWHQDEOHXVWRIL[GDWHVVDYHLQWKHFUXGHVWPDQQHU
:HPHQWLRQWKHWHQWKFHQWXU\EHIRUH&KULVWDVWKHHDUOLHVWSHULRGDWZKLFKZHFDQEHJLQWRVWXG\KXPDQVRFLHW\LQ
JHQHUDODQG*UHHNVRFLHW\LQSDUWLFXODUWKURXJKWKHPHGLXPRIOLWHUDWXUH%XWVWULFWO\VSHDNLQJWKHHSRFKLQTXHVWLRQ
LVRQHZKLFKFDQQRWEHIL[HGZLWKDFFXUDF\7KHHDUOLHVWDVFHUWDLQDEOHGDWHLQ*UHHNKLVWRU\LVWKDWRIWKH2O\PSLDGRI
.RURLERV%&7KHUHLVQRGRXEWWKDWWKH+RPHULFSRHPVZHUHZULWWHQEHIRUHWKLVGDWHDQGWKDW+RPHULV
WKHUHIRUHVWULFWO\SUHKLVWRULF+DGWKLVIDFWEHHQGXO\UHDOL]HGE\WKRVHVFKRODUVZKRKDYHQRWDWWHPSWHGWRGHQ\LWD
YDVWDPRXQWRISURILWOHVVGLVFXVVLRQPLJKWKDYHEHHQDYRLGHG6RRQHURUODWHUDV*URWHVD\V³WKHOHVVRQPXVWEH
OHDUQWKDUGDQGSDLQIXOWKRXJKLWEHWKDWQRLPDJLQDEOHUHDFKRIFULWLFDODFXPHQZLOORILWVHOIHQDEOHXVWRGLVFULPLQDWH
IDQF\IURPUHDOLW\LQWKHDEVHQFHRIDWROHUDEOHVWRFNRIHYLGHQFH´:HGRQRWNQRZZKR+RPHUZDVZHGRQRWNQRZ
ZKHUHRUZKHQKHOLYHGDQGLQDOOSUREDELOLW\ZHVKDOOQHYHUNQRZ7KHGDWDIRUVHWWOLQJWKHTXHVWLRQDUHQRWQRZ
DFFHVVLEOHDQGLWLVQRWOLNHO\WKDWWKH\ZLOOHYHUEHGLVFRYHUHG(YHQLQHDUO\DQWLTXLW\WKHTXHVWLRQZDVZUDSSHGLQDQ
REVFXULW\DVGHHSDVWKDWZKLFKVKURXGVLWWRGD\7KHFDVHEHWZHHQWKHVHYHQRUHLJKWFLWLHVZKLFKFODLPHGWREHWKH
ELUWKSODFHRIWKHSRHWDQGZKLFK:HOFNHUKDVVRDEO\GLVFXVVHGFDQQRWEHGHFLGHG7KHIHHEOHQHVVRIWKHHYLGHQFH
EURXJKWLQWRFRXUWPD\EHMXGJHGIURPWKHIDFWWKDWWKHFODLPVRI&KLRVDQGWKHVWRU\RIWKHSRHW¶VEOLQGQHVVUHVWDOLNH
XSRQDGRXEWIXODOOXVLRQLQWKH+\PQWR$SROORZKLFK7KXN\GLGHV ,,, DFFHSWHGDVDXWKHQWLF7KHPDMRULW\RI
PRGHUQFULWLFVKDYHFRQVROHGWKHPVHOYHVZLWKWKHYDJXHFRQFOXVLRQWKDWDVEHWZHHQWKHWZRJUHDWGLYLVLRQVRIWKHHDUO\
*UHHNZRUOG+RPHUDWOHDVWEHORQJHGWRWKH$VLDWLF%XW0U*ODGVWRQHKDVVKRZQJRRGUHDVRQVIRUGRXEWLQJWKLV
RSLQLRQ+HKDVSRLQWHGRXWVHYHUDOLQVWDQFHVLQZKLFKWKHSRHPVVHHPWREHWUD\DFORVHUWRSRJUDSKLFDODFTXDLQWDQFH
ZLWK(XURSHDQWKDQZLWK$VLDWLF*UHHFHDQGFRQFOXGHVWKDW$WKHQVDQG$UJRVKDYHDWOHDVWDVJRRGDFODLPWR+RPHU
DV&KLRVRU6P\UQD
,WLVIDUPRUHGHVLUDEOHWKDWZHVKRXOGIRUPDQDSSUR[LPDWHRSLQLRQDVWRWKHGDWHRIWKH+RPHULFSRHPVWKDQWKDWZH
VKRXOGVHHNWRGHWHUPLQHWKHH[DFWORFDOLW\LQZKLFKWKH\RULJLQDWHG<HWWKHRQHTXHVWLRQLVKDUGO\OHVVREVFXUHWKDQ
WKHRWKHU'LIIHUHQWZULWHUVRIDQWLTXLW\DVVLJQHGHLJKWGLIIHUHQWHSRFKVWR+RPHURIZKLFKWKHHDUOLHVWLVVHSDUDWHG
IURPWKHPRVWUHFHQWE\DQLQWHUYDORIIRXUKXQGUHGDQGVL[W\\HDUVDSHULRGDVORQJDVWKDWZKLFKVHSDUDWHVWKH%ODFN
3ULQFHIURPWKH'XNHRI:HOOLQJWRQRUWKHDJHRI3HULNOHVIURPWKH&KULVWLDQHUD:KLOH7KHRSRPSRVTXLWH
SUHSRVWHURXVO\EULQJVKLPGRZQDVODWHDVWKHWZHQW\WKLUG2O\PSLDG.UDWHVUHPRYHVKLPWRWKHWZHOIWKFHQWXU\%&
7KHGDWHRUGLQDULO\DFFHSWHGE\PRGHUQFULWLFVLVWKHRQHDVVLJQHGE\+HURGRWRV%&<HW0U*ODGVWRQHVKRZV
UHDVRQVZKLFKDSSHDUWRPHFRQYLQFLQJIRUGRXEWLQJRUUHMHFWLQJWKLVGDWH
,UHIHUWRWKHPXFKDEXVHGOHJHQGRIWKH&KLOGUHQRI+HUDNOHVZKLFKVHHPVFDSDEOHRI\LHOGLQJDQLWHPRIWUXVWZRUWK\
WHVWLPRQ\SURYLGHGLWEHFLUFXPVSHFWO\GHDOWZLWK,GLIIHUIURP0U*ODGVWRQHLQQRWUHJDUGLQJWKHOHJHQGDVKLVWRULFDO
LQLWVSUHVHQWVKDSH,QP\DSSUHKHQVLRQ+\OORVDQG2[\ORVDVKLVWRULFDOSHUVRQDJHVKDYHQRYDOXHZKDWHYHUDQG,
IDLWKIXOO\IROORZ0U*URWHLQUHIXVLQJWRDFFHSWDQ\GDWHHDUOLHUWKDQWKH2O\PSLDGRI.RURLERV7KHWDOHRIWKH
³5HWXUQRIWKH+HUDNOHLGV´LVXQGRXEWHGO\DVXQZRUWK\RIFUHGLWDVWKHOHJHQGRI+HQJVWDQG+RUVD\HWOLNHWKHODWWHU
LWGRXEWOHVVHPERGLHVDKLVWRULFDORFFXUUHQFH2QHFDQQRWDSSURYHDVVFKRODUOLNHRUSKLORVRSKLFDOWKHVFHSWLFLVPRI
0U&R[ZKRFDQVHHLQWKHZKROHQDUUDWLYHQRWKLQJEXWDVRODUP\WK7KHUHFHUWDLQO\ZDVDWLPHZKHQWKH'RULDQ
WULEHV²GHVFULEHGLQWKHOHJHQGDVWKHDOOLHVRIWKH&KLOGUHQRI+HUDNOHV²FRQTXHUHG3HORSRQQHVRVDQGWKDWWLPHZDV
FHUWDLQO\VXEVHTXHQWWRWKHFRPSRVLWLRQRIWKH+RPHULFSRHPV,WLVLQFUHGLEOHWKDWWKH,OLDGDQGWKH2G\VVH\VKRXOG
LJQRUHWKHH[LVWHQFHRI'RULDQVLQ3HORSRQQHVRVLIWKHUHZHUH'RULDQVQRWRQO\GZHOOLQJEXWUXOLQJWKHUHDWWKHWLPH
ZKHQWKHSRHPVZHUHZULWWHQ7KHSRHPVDUHYHU\DFFXUDWHDQGULJRURXVO\FRQVLVWHQWLQWKHLUXVHRIHWKQLFDO
DSSHOODWLYHVDQGWKHLUDXWKRULQVSHDNLQJRI$FKDLDQVDQG$UJLYHVLVDVHYLGHQWO\DOOXGLQJWRSHRSOHVGLUHFWO\NQRZQ
WRKLPDVLV6KDNHVSHDUHZKHQKHPHQWLRQV'DQHVDQG6FRWFKPHQ1RZ+RPHUNQRZV$FKDLDQV$UJLYHVDQG
3HODVJLDQVGZHOOLQJLQ3HORSRQQHVRVDQGKHNQRZV'RULDQVDOVREXWRQO\DVDSHRSOHLQKDELWLQJ&UHWH 2G\VV;,;
 :LWK+RPHUPRUHRYHUWKH+HOOHQHVDUHQRWWKH*UHHNVLQJHQHUDOEXWRQO\DSHRSOHGZHOOLQJLQWKHQRUWKLQ
7KHVVDO\:KHQWKHVHSRHPVZHUHZULWWHQ*UHHFHZDVQRWNQRZQDV+HOODVEXWDV$FKDLDWKHZKROHFRXQWU\WDNLQJ
LWVQDPHIURPWKH$FKDLDQVWKHGRPLQDQWUDFHLQ3HORSRQQHVRV1RZDWWKHEHJLQQLQJRIWKHWUXO\KLVWRULFDOSHULRGLQ
WKHHLJKWKFHQWXU\%&DOOWKLVLVFKDQJHG7KH*UHHNVDVDSHRSOHDUHFDOOHG+HOOHQHVWKH'RULDQVUXOHLQ
3HORSRQQHVRVZKLOHWKHLUODQGVDUHWLOOHGE\$UJLYH+HORWVDQGWKH$FKDLDQVDSSHDURQO\DVDQLQVLJQLILFDQWSHRSOH
RFFXS\LQJWKHVRXWKHUQVKRUHRIWKH&RULQWKLDQ*XOI+RZWKLVFKDQJHWRRNSODFHZHFDQQRWWHOO7KHH[SODQDWLRQRILW
FDQQHYHUEHREWDLQHGIURPKLVWRU\WKRXJKVRPHOLJKWPD\SHUKDSVEHWKURZQXSRQLWE\OLQJXLVWLFDUFKDHRORJ\%XWDW
DOOHYHQWVLWZDVDJUHDWFKDQJHDQGFRXOGQRWKDYHWDNHQSODFHLQDPRPHQW,WLVIDLUWRVXSSRVHWKDWWKH+HOOHQR
'RULDQFRQTXHVWPXVWKDYHEHJXQDWOHDVWDFHQWXU\EHIRUHWKHILUVW2O\PSLDGIRURWKHUZLVHWKHJHRJUDSKLFDOOLPLWVRI
WKHYDULRXV*UHHNUDFHVZRXOGQRWKDYHEHHQVRFRPSOHWHO\HVWDEOLVKHGDVZHILQGWKHPWRKDYHEHHQDWWKDWGDWH7KH
*UHHNVLQGHHGVXSSRVHGLWWRKDYHEHJXQDWOHDVWWKUHHFHQWXULHVHDUOLHUEXWLWLVLPSRVVLEOHWRFROOHFWHYLGHQFHZKLFK
ZLOOHLWKHUUHIXWHRUHVWDEOLVKWKDWRSLQLRQ)RURXUSXUSRVHVLWLVHQRXJKWRNQRZWKDWWKHFRQTXHVWFRXOGQRWKDYH
WDNHQSODFHODWHUWKDQ%&DQGLIWKLVEHWKHFDVHWKH0,1,080'$7(IRUWKHFRPSRVLWLRQRIWKH+RPHULF
SRHPVPXVWEHWKHWHQWKFHQWXU\EHIRUH&KULVWZKLFKLVLQIDFWWKHGDWHDVVLJQHGE\$ULVWRWOH7KXVIDUDQGQRIDUWKHU
,EHOLHYHLWSRVVLEOHWRJRZLWKVDIHW\:KHWKHUWKHSRHPVZHUHFRPSRVHGLQWKHWHQWKHOHYHQWKRUWZHOIWKFHQWXU\
FDQQRWEHGHWHUPLQHG:HDUHMXVWLILHGRQO\LQSODFLQJWKHPIDUHQRXJKEDFNWRDOORZWKH+HOOHQR'RULDQFRQTXHVWWR
LQWHUYHQHEHWZHHQWKHLUFRPSRVLWLRQDQGWKHEHJLQQLQJRIUHFRUGHGKLVWRU\7KHWHQWKFHQWXU\%&LVWKHODWHVWGDWH
ZKLFKZLOODFFRXQWIRUDOOWKHSKHQRPHQDLQYROYHGLQWKHFDVHDQGZLWKWKLVUHVXOWZHPXVWEHVDWLVILHG(YHQRQWKLV
VKRZLQJWKH,OLDGDQG2G\VVH\DSSHDUDVWKHROGHVWH[LVWLQJVSHFLPHQVRI$U\DQOLWHUDWXUHVDYHSHUKDSVWKHK\PQVRI
WKH5LJ9HGDDQGWKHVDFUHGERRNVRIWKH$YHVWD
7KHDSSDUHQWGLIILFXOW\RISUHVHUYLQJVXFKORQJSRHPVIRUWKUHHRUIRXUFHQWXULHVZLWKRXWWKHDLGRIZULWLQJPD\VHHPDW
ILUVWVLJKWWRMXVWLI\WKHK\SRWKHVLVRI:ROIWKDWWKH\DUHPHUHFROOHFWLRQVRIDQFLHQWEDOODGVOLNHWKRVHZKLFKPDNHXS
WKH0DKDEKDUDWDSUHVHUYHGLQWKHPHPRULHVRIDGR]HQRUWZHQW\EDUGVDQGILUVWDUUDQJHGXQGHUWKHRUGHUVRI
3HLVLVWUDWRV%XWRQDFDUHIXOH[DPLQDWLRQWKLVK\SRWKHVLVLVVHHQWRUDLVHPRUHGLIILFXOWLHVWKDQLWVROYHV:KDWZDV
WKHUHLQWKHSRVLWLRQRI3HLVLVWUDWRVRURI$WKHQVLWVHOILQWKHVL[WKFHQWXU\%&VRDXWKRULWDWLYHDVWRFRPSHODOO
*UHHNVWRUHFRJQL]HWKHUHFHQVLRQWKHQDQGWKHUHPDGHRIWKHLUUHYHUHGSRHW"%HVLGHVZKLFKWKHFHOHEUDWHGRUGLQDQFHRI
6RORQUHVSHFWLQJWKHUKDSVRGHVDWWKH3DQDWKHQDLDREOLJHVXVWRLQIHUWKHH[LVWHQFHRIZULWWHQPDQXVFULSWVRI+RPHU
SUHYLRXVWR%&$V0U*URWHZHOOREVHUYHVWKHLQWHUIHUHQFHRI3HLVLVWUDWRV³SUHVXSSRVHVDFHUWDLQIRUHNQRZQ
DQGDQFLHQWDJJUHJDWHWKHPDLQOLQHDPHQWVRIZKLFKZHUHIDPLOLDUWRWKH*UHFLDQSXEOLFDOWKRXJKPDQ\RIWKH
UKDSVRGHVLQWKHLUSUDFWLFHPD\KDYHGHYLDWHGIURPLWERWKE\RPLVVLRQDQGLQWHUSRODWLRQ,QFRUUHFWLQJWKH$WKHQLDQ
UHFLWDWLRQVFRQIRUPDEO\ZLWKVXFKXQGHUVWRRGJHQHUDOW\SH3HLVLVWUDWRVPLJKWKRSHERWKWRSURFXUHUHVSHFWIRU$WKHQV
DQGWRFRQVWLWXWHDIDVKLRQIRUWKHUHVWRI*UHHFH%XWWKLVVWHSRIµFROOHFWLQJWKHWRUQERG\RIVDFUHG+RPHU¶LV
VRPHWKLQJJHQHULFDOO\GLIIHUHQWIURPWKHFRPSRVLWLRQRIDQHZ,OLDGRXWRISUHH[LVWLQJVRQJVWKHIRUPHULVDVHDV\
VXLWDEOHDQGSURPLVLQJDVWKHODWWHULVYLROHQWDQGJUDWXLWRXV´>@
>@+LVW*UHHFH9RO,,S
$VIRU:ROI¶VREMHFWLRQWKDWWKH,OLDGDQG2G\VVH\DUHWRRORQJWRKDYHEHHQSUHVHUYHGE\PHPRU\LWPD\EHPHWE\D
VLPSOHGHQLDO,WLVDVWUDQJHREMHFWLRQLQGHHGFRPLQJIURPDPDQRI:ROI¶VUHWHQWLYHPHPRU\,GRQRWVHHKRZWKH
DFTXLVLWLRQRIWKHWZRSRHPVFDQEHUHJDUGHGDVVXFKDYHU\DUGXRXVWDVNDQGLIOLWHUDWXUHZHUHDVVFDQW\QRZDVLQ
*UHHNDQWLTXLW\WKHUHDUHGRXEWOHVVPDQ\VFKRODUVZKRZRXOGORQJVLQFHKDYHKDGWKHPDWWKHLUWRQJXHV¶HQG6LU*&
/HZLVZLWKEXWOLWWOHFRQVFLRXVHIIRUWPDQDJHGWRFDUU\LQKLVKHDGDYHU\FRQVLGHUDEOHSRUWLRQRI*UHHNDQG/DWLQ
FODVVLFOLWHUDWXUHDQG1LHEXKU ZKRRQFHUHVWRUHGIURPUHFROOHFWLRQDERRNRIDFFRXQWVZKLFKKDGEHHQDFFLGHQWDOO\
GHVWUR\HG ZDVLQWKHKDELWRIUHIHUULQJWRERRNDQGFKDSWHURIDQDQFLHQWDXWKRUZLWKRXWFRQVXOWLQJKLVQRWHV1D\
WKHUHLV3URIHVVRU6RSKRFOHVRI+DUYDUG8QLYHUVLW\ZKRLI\RXVXGGHQO\VWRSDQGLQWHUURJDWHKLPLQWKHVWUHHWZLOO
WHOO\RXMXVWKRZPDQ\WLPHVDQ\JLYHQ*UHHNZRUGRFFXUVLQ7KXN\GLGHVRULQ$(VFK\ORVRULQ3ODWRDQGZLOO
REOLJLQJO\UHKHDUVHIRU\RXWKHFRQWH[W,IDOOH[WDQWFRSLHVRIWKH+RPHULFSRHPVZHUHWREHJDWKHUHGWRJHWKHUDQG
EXUQWXSWRGD\OLNH'RQ4XL[RWH¶VOLEUDU\RUOLNHWKRVH$UDELFPDQXVFULSWVRIZKLFK&DUGLQDO;LPHQHVPDGHD
ERQILUHLQWKHVWUHHWVRI*UDQDGDWKHSRHPVFRXOGYHU\OLNHO\EHUHSURGXFHGDQGRUDOO\WUDQVPLWWHGIRUVHYHUDO
JHQHUDWLRQVDQGPXFKHDVLHUPXVWLWKDYHEHHQIRUWKH*UHHNVWRSUHVHUYHWKHVHERRNVZKLFKWKHLULPDJLQDWLRQ
LQYHVWHGZLWKDTXDVLVDQFWLW\DQGZKLFKFRQVWLWXWHGWKHJUHDWHUSDUWRIWKHOLWHUDU\IXUQLWXUHRIWKHLUPLQGV,Q
;HQRSKRQ¶VWLPHWKHUHZHUHHGXFDWHGJHQWOHPHQDW$WKHQVZKRFRXOGUHSHDWERWK,OLDGDQG2G\VVH\YHUEDWLP
;HQRSK6\PSRV,,, %HVLGHVWKLVZHNQRZWKDWDW&KLRVWKHUHZDVDFRPSDQ\RIEDUGVNQRZQDV+RPHULGV
ZKRVHEXVLQHVVLWZDVWRUHFLWHWKHVHSRHPVIURPPHPRU\DQGIURPWKHHGLFWVRI6RORQDQGWKH6LN\RQLDQ.OHLVWKHQHV
+HURG9 ZHPD\LQIHUWKDWWKHFDVHZDVWKHVDPHLQRWKHUSDUWVRI*UHHFH3DVVDJHVIURPWKH,OLDGXVHGWREH
VXQJDWWKH3\WKLDQIHVWLYDOVWRWKHDFFRPSDQLPHQWRIWKHKDUS $WKHQDHXV;,9 DQGLQDWOHDVWWZRRIWKH,RQLF
LVODQGVRIWKH$(JDHDQWKHUHZHUHUHJXODUFRPSHWLWLYHH[KLELWLRQVE\WUDLQHG\RXQJPHQDWZKLFKSUL]HVZHUHJLYHQWR
WKHEHVWUHFLWHU7KHGLIILFXOW\RISUHVHUYLQJWKHSRHPVXQGHUVXFKFLUFXPVWDQFHVEHFRPHVYHU\LQVLJQLILFDQWDQGWKH
:ROILDQDUJXPHQWTXLWHYDQLVKHVZKHQZHUHIOHFWWKDWLWZRXOGKDYHEHHQQRHDVLHUWRSUHVHUYHDGR]HQRUWZHQW\VKRUW
SRHPVWKDQWZRORQJRQHV1D\WKHFRKHUHQWRUGHUO\DUUDQJHPHQWRIWKH,OLDGDQG2G\VVH\ZRXOGPDNHWKHPHYHQ
HDVLHUWRUHPHPEHUWKDQDJURXSRIVKRUWUKDSVRGLHVQRWFRQVHFXWLYHO\DUUDQJHG
:KHQZHFRPHWRLQWHUURJDWHWKHSRHPVWKHPVHOYHVZHILQGLQWKHPTXLWHFRQYLQFLQJHYLGHQFHWKDWWKH\ZHUH
RULJLQDOO\FRPSRVHGIRUWKHHDUDORQHDQGZLWKRXWUHIHUHQFHWRPDQXVFULSWDVVLVWDQFH7KH\DERXQGLQFDWFKZRUGVDQG
LQYHUEDOUHSHWLWLRQV7KH³&DWDORJXHRI6KLSV´DV0U*ODGVWRQHKDVDFXWHO\REVHUYHGLVDUUDQJHGLQZHOOGHILQHG
VHFWLRQVLQVXFKDZD\WKDWWKHHQGRIHDFKVHFWLRQVXJJHVWVWKHEHJLQQLQJRIWKHQH[WRQH,WUHVHPEOHVWKHYHUVXV
PHPRULDOHVIRXQGLQROGIDVKLRQHGJUDPPDUV%XWWKHPRVWFRQYLQFLQJSURRIRIDOOLVWREHIRXQGLQWKHFKDQJHVZKLFK
*UHHNSURQXQFLDWLRQZHQWWKURXJKEHWZHHQWKHDJHVRI+RPHUDQG3HLVLVWUDWRV³$WWKHWLPHZKHQWKHVHSRHPVZHUH
FRPSRVHGWKHGLJDPPD RUZ ZDVDQHIIHFWLYHFRQVRQDQWDQGILJXUHGDVVXFKLQWKHVWUXFWXUHRIWKHYHUVHDWWKHWLPH
ZKHQWKH\ZHUHFRPPLWWHGWRZULWLQJLWKDGFHDVHGWREHSURQRXQFHGDQGWKHUHIRUHQHYHUIRXQGDSODFHLQDQ\RIWKH
PDQXVFULSWVLQVRPXFKWKDWWKH$OH[DQGULDQFULWLFVWKRXJKWKH\NQHZRILWVH[LVWHQFHLQWKHPXFKODWHUSRHPVRI
$ONDLRVDQG6DSSKRQHYHUUHFRJQL]HGLWLQ+RPHU7KHKLDWXVDQGWKHYDULRXVSHUSOH[LWLHVRIPHWUHRFFDVLRQHGE\WKH
ORVVRIWKHGLJDPPDZHUHFRUUHFWHGE\GLIIHUHQWJUDPPDWLFDOVWUDWDJHPV%XWWKHZKROHKLVWRU\RIWKLVORVWOHWWHULV
YHU\FXULRXVDQGLVUHQGHUHGLQWHOOLJLEOHRQO\E\WKHVXSSRVLWLRQWKDWWKH,OLDGDQG2G\VVH\EHORQJHGIRUDZLGHVSDFH
RIWLPHWRWKHPHPRU\WKHYRLFHDQGWKHHDUH[FOXVLYHO\´>@
>@*URWH+LVW*UHHFH9RO,,S
0DQ\RIWKHVHIDFWVDUHRIFRXUVHIXOO\UHFRJQL]HGE\WKH:ROILDQVEXWWKHLQIHUHQFHGUDZQIURPWKHPWKDWWKH
+RPHULFSRHPVEHJDQWRH[LVWLQDSLHFHPHDOFRQGLWLRQLVDVZHKDYHVHHQXQQHFHVVDU\7KHVHSRHPVPD\LQGHHGEH
FRPSDUHGLQDFHUWDLQVHQVHZLWKWKHHDUO\VDFUHGDQGHSLFOLWHUDWXUHRIWKH-HZV,QGLDQVDQG7HXWRQV%XWLIZH
DVVLJQDSOXUDOLW\RIFRPSRVHUVWRWKH3VDOPVDQG3HQWDWHXFKWKH0DKDEKDUDWDWKH9HGDVDQGWKH(GGDZHGRVR
EHFDXVHRILQWHUQDOHYLGHQFHIXUQLVKHGE\WKHERRNVWKHPVHOYHVDQGQRWEHFDXVHWKHVHERRNVFRXOGQRWKDYHEHHQ
SUHVHUYHGE\RUDOWUDGLWLRQ,VWKHUHWKHQLQWKH+RPHULFSRHPVDQ\VXFKLQWHUQDOHYLGHQFHRIGXDORUSOXUDORULJLQDVLV
IXUQLVKHGE\WKHLQWHUODFHG(ORKLVWLFDQG-HKRYLVWLFGRFXPHQWVRIWKH3HQWDWHXFK"$FDUHIXOLQYHVWLJDWLRQZLOOVKRZ
WKDWWKHUHLVQRW$Q\VFKRODUZKRKDVJLYHQVRPHDWWHQWLRQWRWKHVXEMHFWFDQUHDGLO\GLVWLQJXLVKWKH(ORKLVWLFIURPWKH
-HKRYLVWLFSRUWLRQVRIWKH3HQWDWHXFKDQGVDYHLQWKHFDVHRIDIHZVSRUDGLFYHUVHVPRVW%LEOLFDOFULWLFVFRLQFLGHLQ
WKHVHSDUDWLRQZKLFKWKH\PDNHEHWZHHQWKHWZR%XWWKHDWWHPSWVZKLFKKDYHEHHQPDGHWREUHDNXSWKH,OLDGDQG
2G\VVH\KDYHUHVXOWHGLQQRVXFKKDUPRQLRXVDJUHHPHQW7KHUHDUHDVPDQ\V\VWHPVDVWKHUHDUHFULWLFVDQGQDWXUDOO\
HQRXJK)RUWKH,OLDGDQGWKH2G\VVH\DUHDVPXFKDOLNHDVWZRSHDVDQGWKHUHVHPEODQFHZKLFKKROGVEHWZHHQWKHWZR
KROGVDOVREHWZHHQWKHGLIIHUHQWSDUWVRIHDFKSRHP)URPWKHDSSHDUDQFHRIWKHLQMXUHG&KU\VHVLQWKH*UHFLDQFDPS
GRZQWRWKHLQWHUYHQWLRQRI$WKHQHRQWKHILHOGRIFRQWHVWDW,WKDNDZHILQGLQHDFKERRNDQGLQHDFKSDUDJUDSKWKH
VDPHVW\OHWKHVDPHSHFXOLDULWLHVRIH[SUHVVLRQWKHVDPHKDELWVRIWKRXJKWWKHVDPHTXLWHXQLTXHPDQLIHVWDWLRQVRIWKH
IDFXOW\RIREVHUYDWLRQ1RZLIWKHVW\OHZHUHFRPPRQSODFHWKHREVHUYDWLRQVORYHQO\RUWKHWKRXJKWWULYLDODVLVZRQW
WREHWKHFDVHLQEDOODGOLWHUDWXUHWKLVDUJXPHQWIURPVLPLODULW\PLJKWQRWFDUU\ZLWKLWPXFKFRQYLFWLRQ%XWZKHQZH
UHIOHFWWKDWWKURXJKRXWWKHZKROHFRXUVHRIKXPDQKLVWRU\QRRWKHUZRUNVVDYHWKHEHVWWUDJHGLHVRI6KDNHVSHDUHKDYH
HYHUEHHQZULWWHQZKLFKIRUFRPELQHGNHHQQHVVRIREVHUYDWLRQHOHYDWLRQRIWKRXJKWDQGVXEOLPLW\RIVW\OHFDQ
FRPSDUHZLWKWKH+RPHULFSRHPVZHPXVWDGPLWWKDWWKHDUJXPHQWKDVYHU\JUHDWZHLJKWLQGHHG/HWXVWDNHIRU
H[DPSOHWKHVL[WKDQGWZHQW\IRXUWKERRNVRIWKH,OLDG$FFRUGLQJWRWKHWKHRU\RI/DFKPDQQWKHPRVWHPLQHQW
FKDPSLRQRIWKH:ROILDQK\SRWKHVLVWKHVHDUHE\GLIIHUHQWDXWKRUV+XPDQVSHHFKKDVSHUKDSVQHYHUEHHQEURXJKWVR
QHDUWRWKHOLPLWRILWVFDSDFLW\RIH[SUHVVLQJGHHSHPRWLRQDVLQWKHVFHQHEHWZHHQ3ULDPDQG$FKLOOHXVLQWKHWZHQW\
IRXUWKERRNZKLOHWKHLQWHUYLHZEHWZHHQ+HNWRUDQG$QGURPDFKHLQWKHVL[WKVLPLODUO\ZHOOQLJKH[KDXVWVWKHSRZHURI
ODQJXDJH1RZWKHOLWHUDU\FULWLFKDVDULJKWWRDVNZKHWKHULWLVSUREDEOHWKDWWZRVXFKSDVVDJHVDJUHHLQJSHUIHFWO\LQ
WXUQRIH[SUHVVLRQDQGDOLNHH[KLELWLQJWKHVDPHXQDSSURDFKDEOHGHJUHHRIH[FHOOHQFHFRXOGKDYHEHHQSURGXFHGE\
WZRGLIIHUHQWDXWKRUV$QGWKHSK\VLRORJLVW²ZLWKVRPHLQZDUGPLVJLYLQJVVXJJHVWHGE\0U*DOWRQ¶VWKHRU\WKDWWKH
*UHHNVVXUSDVVHGXVLQJHQLXVHYHQDVZHVXUSDVVWKHQHJURHV²KDVDULJKWWRDVNZKHWKHULWLVLQWKHQDWXUDOFRXUVHRI
WKLQJVIRUWZRVXFKZRQGHUIXOSRHWVVWUDQJHO\DJUHHLQJLQWKHLUPLQXWHVWSV\FKRORJLFDOFKDUDFWHULVWLFVWREHSURGXFHG
DWWKHVDPHWLPH$QGWKHGLIILFXOW\WKXVUDLVHGEHFRPHVRYHUZKHOPLQJZKHQZHUHIOHFWWKDWLWLVWKHFRH[LVWHQFHRIQRW
WZRRQO\EXWDWOHDVWWZHQW\VXFKJHQLXVHVZKLFKWKH:ROILDQK\SRWKHVLVUHTXLUHVXVWRDFFRXQWIRU7KDWWKHRU\
ZRUNHGYHU\ZHOODVORQJDVVFKRODUVWKRXJKWOHVVO\DVVXPHGWKDWWKH,OLDGDQG2G\VVH\ZHUHDQDORJRXVWREDOODGSRHWU\
%XWH[FHSWLQWKHVLPSOLFLW\RIWKHSULPLWLYHGLFWLRQWKHUHLVQRVXFKDQDORJ\7KHSRZHUDQGEHDXW\RIWKH,OLDGDUH
QHYHUVRKRSHOHVVO\ORVWDVZKHQLWLVUHQGHUHGLQWRWKHVW\OHRIDPRGHUQEDOODG2QHPLJKWDVZHOODWWHPSWWRSUHVHUYH
WKHJUDQGHXURIWKHWULXPSKDQWFORVHRI0LOWRQ¶V/\FLGDVE\WXUQLQJLWLQWRWKHOLJKW$QDFUHRQWLFVRIWKHRGHWR³(URV
VWXQJE\D%HH´7KHSHFXOLDULW\RIWKH+RPHULFSRHWU\ZKLFKGHILHVWUDQVODWLRQLVLWVXQLRQRIWKHVLPSOLFLW\
FKDUDFWHULVWLFRIDQHDUO\DJHZLWKDVXVWDLQHGHOHYDWLRQRIVW\OHZKLFKFDQEHH[SODLQHGRQO\DVGXHWRLQGLYLGXDO
JHQLXV
7KHVDPHFRQFOXVLRQLVIRUFHGXSRQXVZKHQZHH[DPLQHWKHDUWLVWLFVWUXFWXUHRIWKHVHSRHPV:LWKUHJDUGWRWKH
2G\VVH\LQSDUWLFXODU0U*URWHKDVHODERUDWHO\VKRZQWKDWLWVVWUXFWXUHLVVRWKRURXJKO\LQWHJUDOWKDWQRFRQVLGHUDEOH
SRUWLRQFRXOGEHVXEWUDFWHGZLWKRXWFRQYHUWLQJWKHSRHPLQWRDPRUHRUOHVVDGPLUDEOHIUDJPHQW7KH,OLDGVWDQGVLQD
VRPHZKDWGLIIHUHQWSRVLWLRQ7KHUHDUHXQPLVWDNDEOHSHFXOLDULWLHVLQLWVVWUXFWXUHZKLFKKDYHOHGHYHQ0U*URWHZKR
XWWHUO\UHMHFWVWKH:ROILDQK\SRWKHVLVWRUHJDUGLWDVPDGHXSRIWZRSRHPVDOWKRXJKKHLQFOLQHVWRWKHEHOLHIWKDWWKH
ODWHUSRHPZDVJUDIWHGXSRQWKHHDUOLHUE\LWVRZQDXWKRUE\ZD\RIIXUWKHUHOXFLGDWLRQDQGH[SDQVLRQMXVWDV*RHWKH
LQKLVROGDJHDGGHGDQHZSDUWWR³)DXVW´$FFRUGLQJWR0U*URWHWKH,OLDGDVRULJLQDOO\FRQFHLYHGZDVSURSHUO\DQ
$FKLOOHLVLWVGHVLJQEHLQJDVLQGLFDWHGLQWKHRSHQLQJOLQHVRIWKHSRHPWRGHSLFWWKHZUDWKRI$FKLOOHXVDQGWKH
XQXWWHUDEOHZRHVZKLFKLWHQWDLOHGXSRQWKH*UHHNV7KHSORWRIWKLVSULPLWLYH$FKLOOHLVLVHQWLUHO\FRQWDLQHGLQ%RRNV,
9,,,DQG;,;;,,DQGLQ0U*URWH¶VRSLQLRQWKHUHPDLQLQJERRNVLQMXUHWKHV\PPHWU\RIWKLVSORWE\
XQQHFHVVDULO\SURORQJLQJWKHGXUDWLRQRIWKH:UDWKZKLOHWKHHPEDVV\WR$FKLOOHXVLQWKHQLQWKERRNXQGXO\
DQWLFLSDWHVWKHFRQGXFWRI$JDPHPQRQLQWKHQLQHWHHQWKDQGLVWKHUHIRUHDVDSLHFHRIEXQJOLQJZRUNWREHUHIHUUHGWR
WKHKDQGVRIDQLQIHULRULQWHUSRODWRU0U*URWHWKLQNVLWSUREDEOHWKDWWKHVHERRNVZLWKWKHH[FHSWLRQRIWKHQLQWKZHUH
VXEVHTXHQWO\DGGHGE\WKHSRHWZLWKDYLHZWRHQODUJLQJWKHRULJLQDO$FKLOOHLVLQWRDUHDO,OLDGGHVFULELQJWKHZDURI
WKH*UHHNVDJDLQVW7UR\:LWKUHIHUHQFHWRWKLVK\SRWKHVLV,JODGO\DGPLWWKDW0U*URWHLVRIDOOPHQQRZOLYLQJWKH
RQHEHVWHQWLWOHGWRDUHYHUHQWLDOKHDULQJRQDOPRVWDQ\SRLQWFRQQHFWHGZLWK*UHHNDQWLTXLW\1HYHUWKHOHVVLWVHHPVWR
PHWKDWKLVWKHRU\UHVWVVROHO\XSRQLPDJLQHGGLIILFXOWLHVZKLFKKDYHQRUHDOH[LVWHQFH,GRXEWLIDQ\VFKRODUUHDGLQJ
WKH,OLDGHYHUVRPXFKZRXOGHYHUEHVWUXFNE\WKHVHDOOHJHGLQFRQVLVWHQFLHVRIVWUXFWXUHXQOHVVWKH\ZHUHVXJJHVWHG
E\VRPHDSULRULWKHRU\$QG,IHDUWKDWWKH:ROILDQWKHRU\LQVSLWHRI0U*URWH¶VHPSKDWLFUHMHFWLRQRILWLV
UHVSRQVLEOHIRUVRPHRIWKHVHRYHUUHILQHGFULWLFLVPV(YHQDVLWVWDQGVWKH,OLDGLVQRWDQDFFRXQWRIWKHZDUDJDLQVW
7UR\,WEHJLQVLQWKHWHQWK\HDURIWKHVLHJHDQGLWGRHVQRWFRQWLQXHWRWKHFDSWXUHRIWKHFLW\,WLVVLPSO\RFFXSLHG
ZLWKDQHSLVRGHLQWKHZDUZLWKWKHZUDWKRI$FKLOOHXVDQGLWVFRQVHTXHQFHVDFFRUGLQJWRWKHSODQPDUNHGRXWLQWKH
RSHQLQJOLQHV7KHVXSSRVHGDGGLWLRQVWKHUHIRUHWKRXJKWKH\PD\KDYHJLYHQWRWKHSRHPDVRPHZKDWZLGHUVFRSH
KDYHQRWDWDQ\UDWHFKDQJHGLWVSULPLWLYHFKDUDFWHURIDQ$FKLOOHLV7RP\PLQGWKH\VHHPHYHQFDOOHGIRUE\WKH
RULJLQDOFRQFHSWLRQRIWKHFRQVHTXHQFHVRIWKHZUDWK7RKDYHLQVHUWHGWKHEDWWOHDWWKHVKLSVLQZKLFK6DUSHGRQEUHDNV
GRZQWKHZDOORIWKH*UHHNVLPPHGLDWHO\DIWHUWKHRFFXUUHQFHVRIWKHILUVWERRNZRXOGKDYHEHHQWRRDEUXSW
DOWRJHWKHU=HXVDIWHUKLVUHOXFWDQWSURPLVHWR7KHWLVPXVWQRWEHH[SHFWHGVRVXGGHQO\WRH[KLELWVXFKIHOO
GHWHUPLQDWLRQ$QGDIWHUWKHORQJVHULHVRIERRNVGHVFULELQJWKHYDORURXVGHHGVRI$LDV'LRPHGHV$JDPHPQRQ
2G\VVHXVDQG0HQHODRVWKHSRZHUIXOLQWHUYHQWLRQRI$FKLOOHXVDSSHDUVLQIDUJUDQGHUSURSRUWLRQVWKDQZRXOG
RWKHUZLVHEHSRVVLEOH$VIRUWKHHPEDVV\WR$FKLOOHXVLQWKHQLQWKERRN,DPXQDEOHWRVHHKRZWKHILQDO
UHFRQFLOLDWLRQZLWK$JDPHPQRQZRXOGEHFRPSOHWHZLWKRXWLW$V0U*ODGVWRQHZHOOREVHUYHVZKDW$FKLOOHXVZDQWV
LVQRWUHVWLWXWLRQEXWDSRORJ\DQG$JDPHPQRQRIIHUVQRDSRORJ\XQWLOWKHQLQHWHHQWKERRN,QKLVDQVZHUWRWKH
DPEDVVDGRUV$FKLOOHXVVFRUQIXOO\UHMHFWVWKHSURSRVDOVZKLFKLPSO\WKDWWKHPHUHUHWXUQRI%ULVHLVZLOOVDWLVI\KLV
ULJKWHRXVUHVHQWPHQWXQOHVVLWEHDFFRPSDQLHGZLWKWKDWSXEOLFKXPLOLDWLRQWRZKLFKFLUFXPVWDQFHVKDYHQRW\HW
FRPSHOOHGWKHOHDGHURIWKH*UHHNVWRVXEMHFWKLPVHOI$FKLOOHXVLVQRWWREHERXJKWRUFDMROHG(YHQWKHH[WUHPH
GLVWUHVVRIWKH*UHHNVLQWKHWKLUWHHQWKERRNGRHVQRWSUHYDLOXSRQKLPQRULVWKHUHDQ\WKLQJLQWKHSRHPWRVKRZWKDW
KHHYHUZRXOGKDYHODLGDVLGHKLVZUDWKKDGQRWWKHGHDWKRI3DWURNORVVXSSOLHGKLPZLWKDQHZDQGZKROO\XQIRUHVHHQ
PRWLYH,WVHHPVWRPHWKDWKLVHQWUDQFHLQWRWKHEDWWOHDIWHUWKHGHDWKRIKLVIULHQGZRXOGORVHKDOILWVSRHWLFHIIHFW
ZHUHLWQRWSUHFHGHGE\VRPHVXFKVFHQHDVWKDWLQWKHQLQWKERRNLQZKLFKKHLVUHSUHVHQWHGDVGHDIWRDOORUGLQDU\
LQGXFHPHQWV$VIRUWKHWZRFRQFOXGLQJERRNVZKLFK0U*URWHLVLQFOLQHGWRUHJDUGDVDVXEVHTXHQWDGGLWLRQQRW
QHFHVVLWDWHGE\WKHSODQRIWKHSRHP,DPDWDORVVWRVHHKRZWKHSRHPFDQEHFRQVLGHUHGFRPSOHWHZLWKRXWWKHP7R
OHDYHWKHERGLHVRI3DWURNORVDQG+HNWRUXQEXULHGZRXOGEHLQWKHKLJKHVWGHJUHHVKRFNLQJWR*UHHNUHOLJLRXVIHHOLQJV
5HPHPEHULQJWKHVHQWHQFHLQFXUUHGLQIDUOHVVVXSHUVWLWLRXVWLPHVE\WKHJHQHUDOVDW$UJLQXVDLLWLVLPSRVVLEOHWR
EHOLHYHWKDWDQ\FRQFOXVLRQZKLFKOHIW3DWURNORV¶VPDQHVXQSURSLWLDWHGDQGWKHPXWLODWHGFRUSVHRI+HNWRU
XQUDQVRPHGFRXOGKDYHVDWLVILHGHLWKHUWKHSRHWRUKLVKHDUHUV)RUIXUWKHUSDUWLFXODUV,PXVWUHIHUWKHUHDGHUWRWKH
H[FHOOHQWFULWLFLVPVRI0U*ODGVWRQHDQGDOVRWRWKHDUWLFOHRQ³*UHHN+LVWRU\DQG/HJHQG´LQWKHVHFRQGYROXPHRI
0U0LOO¶V³'LVVHUWDWLRQVDQG'LVFXVVLRQV´$FDUHIXOVWXG\RIWKHDUJXPHQWVRIWKHVHZULWHUVDQGDERYHDOOD
WKRURXJKDQGLQGHSHQGHQWH[DPLQDWLRQRIWKH,OLDGLWVHOIZLOO,EHOLHYHFRQYLQFHWKHVWXGHQWWKDWWKLVJUHDWSRHPLV
IURPEHJLQQLQJWRHQGWKHFRQVLVWHQWSURGXFWLRQRIDVLQJOHDXWKRU
7KHDUJXPHQWVRIWKRVHZKRZRXOGDWWULEXWHWKH,OLDGDQG2G\VVH\WDNHQDVZKROHVWRWZRGLIIHUHQWDXWKRUVUHVW
FKLHIO\XSRQVRPHDSSDUHQWGLVFUHSDQFLHVLQWKHP\WKRORJ\RIWKHWZRSRHPVEXWPDQ\RIWKHVHGLIILFXOWLHVKDYHEHHQ
FRPSOHWHO\VROYHGE\WKHUHFHQWSURJUHVVRIWKHVFLHQFHRIFRPSDUDWLYHP\WKRORJ\7KXVIRUH[DPSOHWKHIDFWWKDWLQ
WKH,OLDG+HSKDLVWRVLVFDOOHGWKHKXVEDQGRI&KDULVZKLOHLQWKH2G\VVH\KHLVFDOOHGWKHKXVEDQGRI$SKURGLWHKDV
EHHQFLWHGHYHQE\0U*URWHDVHYLGHQFHWKDWWKHWZRSRHPVDUHQRWE\WKHVDPHDXWKRU,WVHHPVWRPHWKDWRQHVXFK
GLVFUHSDQF\LQWKHPLGVWRIFRPSOHWHJHQHUDODJUHHPHQWZRXOGEHPXFKEHWWHUH[SODLQHGDV&HUYDQWHVH[SODLQHGKLV
RZQLQFRQVLVWHQF\ZLWKUHIHUHQFHWRWKHVWHDOLQJRI6DQFKR¶VPXOHLQWKHWZHQW\VHFRQGFKDSWHURI³'RQ4XL[RWH´
%XWWKHUHLVQRGLVFUHSDQF\$SKURGLWHWKRXJKRULJLQDOO\WKHPRRQJRGGHVVOLNHWKH*HUPDQ+RUVHOKDGEHIRUH
+RPHU¶VWLPHDFTXLUHGPDQ\RIWKHDWWULEXWHVRIWKHGDZQJRGGHVV$WKHQHZKLOHKHUOXQDUFKDUDFWHULVWLFVKDGEHHQWRD
JUHDWH[WHQWWUDQVIHUUHGWR$UWHPLVDQG3HUVHSKRQH,QKHUUHQRYDWHGFKDUDFWHUDVJRGGHVVRIWKHGDZQ$SKURGLWH
EHFDPHLGHQWLILHGZLWK&KDULVZKRDSSHDUVLQWKH5LJ9HGDDVGDZQJRGGHVV,QWKHSRVW+RPHULFP\WKRORJ\WKHWZR
ZHUHDJDLQVHSDUDWHGDQG&KDULVEHFRPLQJGLYLGHGLQSHUVRQDOLW\DSSHDUVDVWKH&KDULWHVRU*UDFHVZKRZHUH
VXSSRVHGWREHFRQVWDQWDWWHQGDQWVRI$SKURGLWH%XWLQWKH+RPHULFSRHPVWKHWZRDUHVWLOOLGHQWLFDODQGHLWKHU&KDULV
RU$SKURGLWHPD\EHFDOOHGWKHZLIHRIWKHILUHJRGZLWKRXWLQFRQVLVWHQF\
7KXVWRVXPXS,EHOLHYHWKDW0U*ODGVWRQHLVTXLWHULJKWLQPDLQWDLQLQJWKDWERWKWKH,OLDGDQG2G\VVH\DUHIURP
EHJLQQLQJWRHQGZLWKWKHH[FHSWLRQRIDIHZLQVLJQLILFDQWLQWHUSRODWLRQVWKHZRUNRIDVLQJOHDXWKRUZKRPZHKDYH
QRJURXQGIRUFDOOLQJE\DQ\RWKHUQDPHWKDQWKDWRI+RPHU,EHOLHYHPRUHRYHUWKDWWKLVDXWKRUOLYHGEHIRUHWKH
EHJLQQLQJRIDXWKHQWLFKLVWRU\DQGWKDWZHFDQGHWHUPLQHQHLWKHUKLVDJHQRUKLVFRXQWU\ZLWKSUHFLVLRQ:HFDQRQO\
GHFLGHWKDWKHZDVD*UHHNZKROLYHGDWVRPHWLPHSUHYLRXVWRWKH\HDU%&
+HUHKRZHYHU,PXVWEHJLQWRSDUWFRPSDQ\ZLWK0U*ODGVWRQHDQGVKDOOKHQFHIRUWKXQIRUWXQDWHO\KDYHIUHTXHQW
RFFDVLRQWRGLIIHUIURPKLPRQSRLQWVRIIXQGDPHQWDOLPSRUWDQFH)RU0U*ODGVWRQHQRWRQO\UHJDUGVWKH+RPHULFDJH
DVVWULFWO\ZLWKLQWKHOLPLWVRIDXWKHQWLFKLVWRU\EXWKHHYHQJRHVPXFKIXUWKHUWKDQWKLV+HZRXOGQRWRQO\IL[WKHGDWH
RI+RPHUSRVLWLYHO\LQWKHWZHOIWKFHQWXU\%&EXWKHUHJDUGVWKH7URMDQZDUDVDSXUHO\KLVWRULFDOHYHQWRIZKLFK
+RPHULVWKHDXWKHQWLFKLVWRULDQDQGWKHSUREDEOHH\HZLWQHVV1D\KHHYHQWDNHVWKHZRUGRIWKHSRHWDVSURRI
FRQFOXVLYHRIWKHKLVWRULFDOFKDUDFWHURIHYHQWVKDSSHQLQJVHYHUDOJHQHUDWLRQVEHIRUHWKH7URLNDDFFRUGLQJWRWKH
OHJHQGDU\FKURQRORJ\+HQRWRQO\UHJDUGV$JDPHPQRQ$FKLOOHXVDQG3DULVDVDFWXDOSHUVRQDJHVEXWKHDVFULEHVWKH
VDPHUHDOLW\WRFKDUDFWHUVOLNH'DQDRV.DGPRVDQG3HUVHXVDQGWDONVRIWKH3HORSLGDQG$LROLGG\QDVWLHVDQGWKH
HPSLUHRI0LQRVZLWKDVPXFKFRQILGHQFHDVLIKHZHUHGHDOLQJZLWK.DUOLQJVRU&DSHWLDQVRUZLWKWKHHSRFKRIWKH
&UXVDGHV
,WLVGLVKHDUWHQLQJDWWKHSUHVHQWGD\DQGDIWHUVRPXFKKDVEHHQILQDOO\VHWWOHGE\ZULWHUVOLNH*URWH0RPPVHQDQG
6LU*&/HZLVWRFRPHXSRQVXFKYLHZVLQWKHZRUNRIDPDQRIVFKRODUVKLSDQGLQWHOOLJHQFH2QHEHJLQVWRZRQGHU
KRZPDQ\PRUHWLPHVLWZLOOEHQHFHVVDU\WRSURYHWKDWGDWHVDQGHYHQWVDUHRIQRKLVWRULFDOYDOXHXQOHVVDWWHVWHGE\
QHDUO\FRQWHPSRUDU\HYLGHQFH3DXVDQLDVDQG3OXWDUFKZHUHDEOHPHQQRGRXEWDQG7KXN\GLGHVZDVDSURIRXQG
KLVWRULDQEXWZKDWWKHVHZULWHUVWKRXJKWRIWKH+HUDNOHLGLQYDVLRQWKHDJHRI+RPHUDQGWKHZDURI7UR\FDQKDYHQR
JUHDWZHLJKWZLWKWKHFULWLFDOKLVWRULDQVLQFHHYHQLQWKHWLPHRI7KXN\GLGHVWKHVHHYHQWVZHUHDVFRPSOHWHO\REVFXUHG
E\ODSVHRIWLPHDVWKH\DUHQRZ7KHUHLVQROLWHUDU\*UHHNKLVWRU\EHIRUHWKHDJHRI+HNDWDLRVDQG+HURGRWRVWKUHH
FHQWXULHVVXEVHTXHQWWRWKHILUVWUHFRUGHG2O\PSLDG$SRUWLRQRIWKLVSHULRGLVVDWLVIDFWRULO\FRYHUHGE\LQVFULSWLRQV
EXWHYHQWKHVHIDLOXVEHIRUHZHJHWZLWKLQDFHQWXU\RIWKLVHDUOLHVWDVFHUWDLQDEOHGDWH(YHQWKHFDUHHURIWKHODZJLYHU
/\NRXUJRVZKLFKVHHPVWREHORQJWRWKHFRPPHQFHPHQWRIWKHHLJKWKFHQWXU\%&SUHVHQWVXVIURPODFNRI
DQ\WKLQJOLNHFRQWHPSRUDU\UHFRUGVZLWKPDQ\LQVROXEOHSUREOHPV7KH+HOOHQR'RULDQFRQTXHVWDVZHKDYHVHHQ
PXVWKDYHRFFXUUHGDWVRPHWLPHRURWKHUEXWLWHYLGHQWO\GLGQRWRFFXUZLWKLQWZRFHQWXULHVRIWKHHDUOLHVWNQRZQ
LQVFULSWLRQDQGLWLVWKHUHIRUHIROO\WRLPDJLQHWKDWZHFDQGHWHUPLQHLWVGDWHRUDVFHUWDLQWKHFLUFXPVWDQFHVZKLFK
DWWHQGHGLW$QWHULRUWRWKLVHYHQWWKHUHLVEXWRQHIDFWLQ*UHHNDQWLTXLW\GLUHFWO\NQRZQWRXVWKHH[LVWHQFHRIWKH
+RPHULFSRHPV7KHEHOLHIWKDWWKHUHZDVD7URMDQZDUUHVWVH[FOXVLYHO\XSRQWKHFRQWHQWVRIWKRVHSRHPVWKHUHLVQR
RWKHULQGHSHQGHQWWHVWLPRQ\WRLWZKDWHYHU%XWWKH+RPHULFSRHPVDUHRIQRYDOXHDVWHVWLPRQ\WRWKHWUXWKRIWKH
VWDWHPHQWVFRQWDLQHGLQWKHPXQOHVVLWFDQEHSURYHGWKDWWKHLUDXWKRUZDVHLWKHUFRQWHPSRUDU\ZLWKWKH7URLNDRUHOVH
GHULYHGKLVLQIRUPDWLRQIURPFRQWHPSRUDU\ZLWQHVVHV7KLVFDQQHYHUEHSURYHG7RDVVXPHDV0U*ODGVWRQHGRHV
WKDW+RPHUOLYHGZLWKLQILIW\\HDUVDIWHUWKH7URLNDLVWRPDNHDSXUHO\JUDWXLWRXVDVVXPSWLRQ)RUDXJKWWKHZLVHVW
KLVWRULDQFDQWHOOWKHLQWHUYDOPD\KDYHEHHQILYHKXQGUHG\HDUVRUDWKRXVDQG,QGHHGWKH,OLDGLWVHOIH[SUHVVO\
GHFODUHVWKDWLWLVGHDOLQJZLWKDQDQFLHQWVWDWHRIWKLQJVZKLFKQRORQJHUH[LVWV,WLVGLIILFXOWWRVHHZKDWHOVHFDQEH
PHDQWE\WKHVWDWHPHQWWKDWWKHKHURHVRIWKH7URLNDEHORQJWRDQRUGHURIPHQQRORQJHUVHHQXSRQWKHHDUWK ,OLDG9
 0RVWDVVXUHGO\$FKLOOHXVWKHVRQRI7KHWLVDQG6DUSHGRQWKHVRQRI=HXVDQG+HOHQDWKHGDXJKWHURI=HXVDUH
QRRUGLQDU\PRUWDOVVXFKDVPLJKWKDYHEHHQVHHQDQGFRQYHUVHGZLWKE\WKHSRHW¶VJUDQGIDWKHU7KH\EHORQJWRDQ
LQIHULRURUGHURIJRGVDFFRUGLQJWRWKHSHFXOLDUDQWKURSRPRUSKLVPRIWKH*UHHNVLQZKLFKGHLW\DQGKXPDQLW\DUHVR
FORVHO\PLQJOHGWKDWLWLVGLIILFXOWWRWHOOZKHUHWKHRQHEHJLQVDQGWKHRWKHUHQGV'LRPHGHVVLQJOHKDQGHGYDQTXLVKHV
QRWRQO\WKHJHQWOH$SKURGLWHEXWHYHQWKHJRGRIEDWWOHVKLPVHOIWKHWHUULEOH$UHV1HVWRUTXDIIVOLJKWO\IURPDJREOHW
ZKLFKZHDUHWROGQRWWZRPHQDPRQJWKHSRHW¶VFRQWHPSRUDULHVFRXOGE\WKHLUXQLWHGH[HUWLRQVUDLVHDQGSODFHXSRQ
DWDEOH$LDVDQG+HNWRUDQG$LQHLDVKXUOHQRUPRXVPDVVHVRIURFNDVHDVLO\DVDQRUGLQDU\PDQZRXOGWKURZDSHEEOH
$OOWKLVVKRZVWKDWWKHSRHWLQKLVQDLYHZD\FRQFHLYLQJRIWKHVHKHURHVDVSHUVRQDJHVRIDUHPRWHSDVWZDV
HQGHDYRXULQJDVIDUDVSRVVLEOHWRDVFULEHWRWKHPWKHDWWULEXWHVRIVXSHULRUEHLQJV,IDOOWKDWZHUHGLYLQHPDUYHOORXV
RUVXSHUKXPDQZHUHWREHOHIWRXWRIWKHSRHPVWKHVXSSRVHGKLVWRULFDOUHVLGXHZRXOGKDUGO\EHZRUWKWKHWURXEOHRI
VDYLQJ$V0U&R[ZHOOREVHUYHV³,WLVRIWKHYHU\HVVHQFHRIWKHQDUUDWLYHWKDW3DULVZKRKDVGHVHUWHG2LQRQHWKH
FKLOGRIWKHVWUHDP.HEUHQDQGEHIRUHZKRP+HUH$WKHQHDQG$SKURGLWHKDGDSSHDUHGDVFODLPDQWVIRUWKHJROGHQ
DSSOHVWHDOVIURP6SDUWDWKHEHDXWLIXOVLVWHURIWKH'LRVNRXURLWKDWWKHFKLHIVDUHVXPPRQHGWRJHWKHUIRUQRRWKHU
SXUSRVHWKDQWRDYHQJHKHUZRHVDQGZURQJVWKDW$FKLOOHXVWKHVRQRIWKHVHDQ\PSK7KHWLVWKHZLHOGHURILQYLQFLEOH
ZHDSRQVDQGWKHORUGRIXQG\LQJKRUVHVJRHVWRILJKWLQDTXDUUHOZKLFKLVQRWKLVRZQWKDWKLVZUDWKLVURXVHGEHFDXVH
KHLVUREEHGRIWKHPDLGHQ%ULVHLVDQGWKDWKHQFHIRUWKKHWDNHVQRSDUWLQWKHVWULIHXQWLOKLVIULHQG3DWURNORVKDVEHHQ
VODLQWKDWWKHQKHSXWVRQWKHQHZDUPRXUZKLFK7KHWLVEULQJVWRKLPIURPWKHDQYLORI+HSKDLVWRVDQGJRHVIRUWKWR
ZLQWKHYLFWRU\7KHGHWDLOVDUHWKURXJKRXWRIWKHVDPHQDWXUH$FKLOOHXVVHHVDQGFRQYHUVHVZLWK$WKHQH$SKURGLWHLV
ZRXQGHGE\'LRPHGHVDQG6OHHSDQG'HDWKEHDUDZD\WKHOLIHOHVV6DUSHGRQRQWKHLUQRLVHOHVVZLQJVWRWKHIDURII
ODQGRIOLJKW´,QYLHZRIDOOWKLVLWLVHYLGHQWWKDW+RPHUZDVQRWGHVFULELQJOLNHDVDODULHGKLVWRULRJUDSKHUWKHVWDWHRI
WKLQJVZKLFKH[LVWHGLQWKHWLPHRIKLVIDWKHURUJUDQGIDWKHU7RKLVPLQGWKHRFFXUUHQFHVZKLFKKHGHVFULEHGZHUH
WKRVHRIDUHPRWHDZRQGHUIXODVHPLGLYLQHSDVW
7KLVFRQFOXVLRQZKLFK,KDYHWKXVIDUVXSSRUWHGPHUHO\E\UHIHUHQFHWRWKH,OLDGLWVHOIEHFRPHVLUUHVLVWLEOHDVVRRQDV
ZHWDNHLQWRDFFRXQWWKHUHVXOWVREWDLQHGGXULQJWKHSDVWWKLUW\\HDUVE\WKHVFLHQFHRIFRPSDUDWLYHP\WKRORJ\$VORQJ
DVRXUYLHZZDVUHVWULFWHGWR*UHHFHLWZDVSHUKDSVH[FXVDEOHWKDW$FKLOOHXVDQG3DULVVKRXOGEHWDNHQIRUH[DJJHUDWHG
FRSLHVRIDFWXDOSHUVRQV6LQFHWKHGD\ZKHQ*ULPPODLGWKHIRXQGDWLRQVRIWKHVFLHQFHRIP\WKRORJ\DOOWKLVKDVEHHQ
FKDQJHG,WLVQRZKHOGWKDW$FKLOOHXVDQG3DULVDQG+HOHQDDUHWREHIRXQGQRWRQO\LQWKH,OLDGEXWDOVRLQWKH5LJ
9HGDDQGWKHUHIRUHDVP\WKLFDOFRQFHSWLRQVGDWHQRWIURP+RPHUEXWIURPDSHULRGSUHFHGLQJWKHGLVSHUVLRQRIWKH
$U\DQQDWLRQV7KHWDOHRIWKH:UDWKRI$FKLOOHXVIDUIURPRULJLQDWLQJZLWK+RPHUIDUIURPEHLQJUHFRUGHGE\WKH
DXWKRURIWKH,OLDGDVE\DQH\HZLWQHVVPXVWKDYHEHHQNQRZQLQLWVHVVHQWLDOIHDWXUHVLQ$U\DQDYDHGMRDWWKDWUHPRWH
HSRFKZKHQWKH,QGLDQWKH*UHHNDQGWKH7HXWRQZHUHDV\HWRQHDQGWKHVDPH)RUWKHVWRU\KDVEHHQUHWDLQHGE\WKH
WKUHHUDFHVDOLNHLQDOOLWVSULQFLSDOIHDWXUHVWKRXJKWKH9HGDKDVOHIWLWLQWKHVN\ZKHUHLWRULJLQDOO\EHORQJHGZKLOH
WKH,OLDGDQGWKH1LEHOXQJHQOLHGKDYHEURXJKWLWGRZQWRHDUWKWKHRQHORFDWLQJLWLQ$VLD0LQRUDQGWKHRWKHULQ
1RUWKZHVWHUQ(XURSH>@
>@)RUWKHSUHFLVHH[WHQWWRZKLFK,ZRXOGLQGRUVHWKHWKHRU\WKDWWKH,OLDGP\WKLVDQDFFRXQWRIWKHYLFWRU\RIOLJKW
RYHUGDUNQHVVOHWPHUHIHUWRZKDW,KDYHVDLGDERYHRQS,GRQRWVXSSRVHWKDWWKHVWUXJJOHEHWZHHQOLJKWDQG
GDUNQHVVZDV+RPHU¶VVXEMHFWLQWKH,OLDGDQ\PRUHWKDQLWZDV6KDNHVSHDUH¶VVXEMHFWLQ³+DPOHW´+RPHU¶VVXEMHFW
ZDVWKHZUDWKRIWKH*UHHNKHURDV6KDNHVSHDUH¶VVXEMHFWZDVWKHYHQJHDQFHRIWKH'DQLVKSULQFH1HYHUWKHOHVVWKH
VWRU\RI+DPOHWZKHQWUDFHGEDFNWRLWV1RUVHRULJLQDOLVXQPLVWDNDEO\WKHVWRU\RIWKHTXDUUHOEHWZHHQVXPPHUDQG
ZLQWHUDQGWKHPRRG\SULQFHLVDVPXFKDVRODUKHURDV2GLQKLPVHOI6HH6LPURFN'LH4XHOOHQGHV6KDNHVSHDUH,
2IFRXUVH6KDNHVSHDUHNQHZQRWKLQJRIWKLVDV+RPHUNQHZQRWKLQJRIWKHRULJLQRIKLV$FKLOOHXV7KHWZR
VWRULHVWKHUHIRUHDUHQRWWREHWDNHQDVVXQP\WKVLQWKHLUSUHVHQWIRUP7KH\DUHWKHRIIVSULQJRIRWKHUVWRULHVZKLFK
ZHUHVXQP\WKVWKH\DUHVWRULHVZKLFKFRQIRUPWRWKHVXQP\WKW\SHDIWHUWKHPDQQHUDERYHLOOXVWUDWHGLQWKHSDSHURQ
/LJKWDQG'DUNQHVV>+HQFHWKHUHLVQRWKLQJXQLQWHOOLJLEOHLQWKHLQFRQVLVWHQF\²ZKLFKVHHPVWRSX]]OH0D[0XOOHU
6FLHQFHRI/DQJXDJHWK HG9RO,,SQRWH RILQYHVWLQJ3DULVZLWKPDQ\RIWKHFKDUDFWHULVWLFVRIWKH
FKLOGUHQRIOLJKW6XSSRVLQJDVZHPXVWWKDWWKHSULPLWLYHVHQVHRIWKH,OLDGP\WKKDGDVHQWLUHO\GLVDSSHDUHGLQWKH
+RPHULFDJHDVWKHSULPLWLYHVHQVHRIWKH+DPOHWP\WKKDGGLVDSSHDUHGLQWKHWLPHVRI(OL]DEHWKWKHILWJURXQGIRU
ZRQGHULVWKDWVXFKLQFRQVLVWHQFLHVDUHQRWPRUHQXPHURXV@7KHSK\VLFDOWKHRU\RIP\WKVZLOOEHSURSHUO\SUHVHQWHG
DQGFRPSUHKHQGHGRQO\ZKHQLWLVXQGHUVWRRGWKDWZHDFFHSWWKHSK\VLFDOGHULYDWLRQRIVXFKVWRULHVDVWKH,OLDGP\WK
LQPXFKWKHVDPHZD\WKDWZHDUHERXQGWRDFFHSWWKHSK\VLFDOHW\PRORJLHVRIVXFKZRUGVDVVRXOFRQVLGHUWUXWK
FRQYLQFHGHOLEHUDWHDQGWKHOLNH7KHODWH'U*LEEVRI<DOH&ROOHJHLQKLV³3KLORORJLFDO6WXGLHV´²DOLWWOHERRN
ZKLFK,XVHGWRUHDGZLWKGHOLJKWZKHQDER\GHVFULEHVVXFKHW\PRORJLHVDV³IDGHGPHWDSKRUV´,QVLPLODUZLVHZKLOH
UHIUDLQLQJIURPFKDUDFWHUL]LQJWKH,OLDGRUWKHWUDJHG\RI+DPOHW²DQ\PRUHWKDQ,ZRXOGFKDUDFWHUL]H/H-XLI(UUDQWE\
6XHRU/D0DLVRQ)RUHVWLHUHE\(UFNPDQQ&KDWULDQ²DVQDWXUHP\WKV,ZRXOGDWWKHVDPHWLPHFRQVLGHUWKHVHSRHPV
ZHOOGHVFULEHGDVHPERG\LQJ³IDGHGQDWXUHP\WKV´
,QWKH5LJ9HGDWKH3DQLVDUHWKHJHQLLRIQLJKWDQGZLQWHUFRUUHVSRQGLQJWRWKH1LEHOXQJVRU³&KLOGUHQRIWKH0LVW´
LQWKH7HXWRQLFOHJHQGDQGWRWKHFKLOGUHQRI1HSKHOH FORXG LQWKH*UHHNP\WKRIWKH*ROGHQ)OHHFH7KH3DQLVVWHDO
WKHFDWWOHRIWKH6XQ ,QGUD+HOLRV+HUDNOHV DQGFDUU\WKHPE\DQXQNQRZQURXWHWRDGDUNFDYHHDVWZDUG6DUDPD
WKHFUHHSLQJ'DZQLVVHQWE\,QGUDWRILQGDQGUHFRYHUWKHP7KH3DQLVWKHQWDPSHUZLWK6DUDPDDQGWU\WKHLUEHVWWR
LQGXFHKHUWREHWUD\KHUVRODUORUG)RUDZKLOHVKHLVSUHYDLOHGXSRQWRGDOO\ZLWKWKHP\HWVKHXOWLPDWHO\UHWXUQVWR
JLYH,QGUDWKHLQIRUPDWLRQQHHGIXOLQRUGHUWKDWKHPLJKWFRQTXHUWKH3DQLVMXVWDV+HOHQDLQWKHVOLJKWO\DOWHUHG
YHUVLRQXOWLPDWHO\UHWXUQVWRKHUZHVWHUQKRPHFDUU\LQJZLWKKHUWKHWUHDVXUHV NWHPDWD,OLDG,, RIZKLFK3DULV
KDGUREEHG0HQHODRV%XWEHIRUHWKHEULJKW,QGUDDQGKLVVRODUKHURHVFDQUHFRQTXHUWKHLUWUHDVXUHVWKH\PXVWWDNH
FDSWLYHWKHRIIVSULQJRI%ULVD\DWKHYLROHWOLJKWRIPRUQLQJ7KXV$FKLOOHXVDQVZHULQJWRWKHVRODUFKDPSLRQ$KDU\X
WDNHVFDSWLYHWKHGDXJKWHURI%ULVHV%XWDVWKHVXQPXVWDOZD\VEHSDUWHGIURPWKHPRUQLQJOLJKWWRUHWXUQWRLWDJDLQ
MXVWEHIRUHVHWWLQJVR$FKLOOHXVORVHV%ULVHLVDQGUHJDLQVKHURQO\MXVWEHIRUHKLVILQDOVWUXJJOH,QVLPLODUZLVH
+HUDNOHVLVSDUWHGIURP,ROH ³WKHYLROHWRQH´ DQG6LJXUGIURP%U\QKLOG,QVXOOHQZUDWKWKHKHURUHWLUHVIURPWKH
FRQIOLFWDQGKLV0\UPLGRQVDUHQRORQJHUVHHQRQWKHEDWWOHILHOGDVWKHVXQKLGHVEHKLQGWKHGDUNFORXGDQGKLVUD\V
QRORQJHUDSSHDUDERXWKLP<HWWRZDUGWKHHYHQLQJDV%ULVHLVUHWXUQVKHDSSHDUVLQKLVPLJKWFORWKHGLQWKHGD]]OLQJ
DUPRXUZURXJKWIRUKLPE\WKHILUHJRG+HSKDLVWRVDQGZLWKKLVLQYLQFLEOHVSHDUVOD\VWKHJUHDWVWRUPFORXGZKLFK
GXULQJKLVDEVHQFHKDGZHOOQLJKSUHYDLOHGRYHUWKHFKDPSLRQVRIWKHGD\OLJKW%XWKLVWULXPSKLVVKRUWOLYHGIRUKDYLQJ
WUDPSOHGRQWKHFORXGVWKDWKDGRSSRVHGKLPZKLOH\HWFULPVRQHGZLWKWKHILHUFHFDUQDJHWKHVKDUSDUURZRIWKHQLJKW
GHPRQ3DULVVOD\VKLPDWWKH:HVWHUQ*DWHV:HKDYHQRWVSDFHWRJRLQWRIXUWKHUGHWDLOV,Q0U&R[¶V³0\WKRORJ\RI
WKH$U\DQ1DWLRQV´DQG³7DOHVRI$QFLHQW*UHHFH´WKHUHDGHUZLOOILQGWKHHQWLUHFRQWHQWVRIWKH,OLDGDQG2G\VVH\
WKXVPLQXWHO\LOOXVWUDWHGE\FRPSDULVRQZLWKWKH9HGDWKH(GGDDQGWKH/D\RIWKH1LEHOXQJV
$QFLHQWDVWKH+RPHULFSRHPVXQGRXEWHGO\DUHWKH\DUHPRGHUQLQFRPSDULVRQZLWKWKHWDOHRI$FKLOOHXVDQG+HOHQD
DVKHUHXQIROGHG7KHGDWHRIWKHHQWUDQFHRIWKH*UHHNVLQWR(XURSHZLOOSHUKDSVQHYHUEHGHWHUPLQHGEXW,GRQRWVHH
KRZDQ\FRPSHWHQWVFKRODUFDQZHOOSODFHLWDWOHVVWKDQHLJKWKXQGUHGRUDWKRXVDQG\HDUVEHIRUHWKHWLPHRI+RPHU
%HWZHHQWKHWZRHSRFKVWKH*UHHN/DWLQ8PEULDQDQG.HOWLFODXJXDJHVKDGWLPHWRDFTXLUHGLVWLQFWLQGLYLGXDOLWLHV
)DUHDUOLHUWKHUHIRUHWKDQWKH+RPHULF³MXYHQWXVPXQGL´ZDVWKDW³\RXWKRIWKHZRUOG´LQZKLFKWKH$U\DQ
IRUHIDWKHUVNQRZLQJQRDEVWUDFWWHUPVDQGSRVVHVVLQJQRSKLORVRSK\EXWIHWLFKLVPGHOLEHUDWHO\VSRNHRIWKH6XQDQG
WKH'DZQDQGWKH&ORXGVDVSHUVRQVRUDVDQLPDOV7KH9HGDWKRXJKFRPSRVHGPXFKODWHUWKDQWKLVSHUKDSVDVODWH
DVWKH,OLDGQHYHUWKHOHVVSUHVHUYHVWKHUHFRUGRIWKHPHQWDOOLIHRIWKLVSHULRG7KH9HGLFSRHWLVVWLOOGLPO\DZDUHWKDW
6DUDPDLVWKHILFNOHWZLOLJKWDQGWKH3DQLVWKHQLJKWGHPRQVZKRVWULYHWRFRD[KHUIURPKHUDOOHJLDQFHWRWKHGD\JRG
+HNHHSVWKHVFHQHRIDFWLRQLQWKHVN\%XWWKH+RPHULF*UHHNKDGORQJVLQFHIRUJRWWHQWKDW+HOHQDDQG3DULVZHUH
DQ\WKLQJPRUHWKDQVHPLGLYLQHPRUWDOVWKHGDXJKWHURI=HXVDQGWKHVRQRIWKH=HXVGHVFHQGHG3ULDP7KH+LQGX
XQGHUVWRRGWKDW'\DXV ³WKHEULJKWRQH´ PHDQWWKHVN\DQG6DUDPD ³WKHFUHHSLQJRQH´ WKHGDZQDQGVSRNH
VLJQLILFDQWO\ZKHQKHFDOOHGWKHODWWHUWKHGDXJKWHURIWKHIRUPHU%XWWKH*UHHNFRXOGQRWNQRZWKDW=HXVZDVGHULYHG
IURPDURRWGLY³WRVKLQH´RUWKDW+HOHQDEHORQJHGWRDURRWVDU³WRFUHHS´3KRQHWLFFKDQJHWKXVKHOSHGKLPWRULVH
IURPIHWLFKLVPWRSRO\WKHLVP+LVQDWXUHJRGVEHFDPHWKRURXJKO\DQWKURSRPRUSKLFDQGKHSUREDEO\QRPRUH
UHPHPEHUHGWKDW$FKLOOHXVRULJLQDOO\VLJQLILHGWKHVXQWKDQZHUHPHPEHUWKDWWKHZRUG*RGZKLFKZHXVHWRGHQRWH
WKHPRVWYDVWRIFRQFHSWLRQVRULJLQDOO\PHDQWVLPSO\WKH6WRUPZLQG,QGHHGZKHQWKHIHWLFKLVWLFWHQGHQF\OHGWKH
*UHHNDJDLQWRSHUVRQLI\WKHSRZHUVRIQDWXUHKHKDGUHFRXUVHWRQHZQDPHVIRUPHGIURPKLVRZQODQJXDJH7KXV
EHVLGH$SROORZHKDYH+HOLRV6HOHQHEHVLGH$UWHPLVDQG3HUVHSKRQH(RVEHVLGH$WKHQH*DLDEHVLGH'HPHWHU$VD
IXUWKHUFRQVHTXHQFHRIWKLVGHFRPSRVLWLRQDQGQHZGHYHORSPHQWRIWKHROG$U\DQP\WKRORJ\ZHILQGDVPLJKWEH
H[SHFWHGWKDWWKH+RPHULFSRHPVDUHQRWDOZD\VFRQVLVWHQWLQWKHLUXVHRIWKHLUP\WKLFPDWHULDOV7KXV3DULVWKH
QLJKWGHPRQLV²WR0D[0XOOHU¶VSHUSOH[LW\²LQYHVWHGZLWKPDQ\RIWKHDWWULEXWHVRIWKHEULJKWVRODUKHURHV³/LNH
3HUVHXV2LGLSRXV5RPXOXVDQG&\UXVKHLVGRRPHGWREULQJUXLQRQKLVSDUHQWVOLNHWKHPKHLVH[SRVHGLQKLV
LQIDQF\RQWKHKLOOVLGHDQGUHVFXHGE\DVKHSKHUG´$OOWKHVRODUKHURHVEHJLQOLIHLQWKLVZD\:KHWKHUOLNH$SROOR
ERUQRIWKHGDUNQLJKW /HWR RUOLNH2LGLSRXVRIWKHYLROHWGDZQ ,RNDVWH WKH\DUHDOLNHGHVWLQHGWREULQJGHVWUXFWLRQ
RQWKHLUSDUHQWVDVWKHQLJKWDQGWKHGDZQDUHERWKGHVWUR\HGE\WKHVXQ7KHH[SRVXUHRIWKHFKLOGLQLQIDQF\
UHSUHVHQWVWKHORQJUD\VRIWKHPRUQLQJVXQUHVWLQJRQWKHKLOOVLGH7KHQ3DULVIRUVDNHV2LQRQH ³WKHZLQHFRORXUHG
RQH´ EXWPHHWVKHUDJDLQDWWKHJORDPLQJZKHQVKHOD\VKHUVHOIE\KLVVLGHDPLGWKHFULPVRQIODPHVRIWKHIXQHUDO
S\UH6DUSHGRQDOVRDVRODUKHURLVPDGHWRILJKWRQWKHVLGHRIWKH1LEOXQJVRU7URMDQVDWWHQGHGE\KLVIULHQG
*ODXNRV ³WKHEULOOLDQWRQH´ 7KH\FRPPDQGWKH/\NLDQVRU³FKLOGUHQRIOLJKW´DQGZLWKWKHPFRPHVDOVR0HPQRQ
VRQRIWKH'DZQIURPWKHILHU\ODQGRIWKH$LWKLRSHVWKHIDYRXULWHKDXQWRI=HXVDQGWKHJRGVRI2O\PSRV
7KH,OLDGP\WKPXVWWKHUHIRUHKDYHEHHQFXUUHQWPDQ\DJHVEHIRUHWKH*UHHNVLQKDELWHG*UHHFHORQJEHIRUHWKHUHZDV
DQ\,OLRQWREHFRQTXHUHG1HYHUWKHOHVVWKLVGRHVQRWIRUELGWKHVXSSRVLWLRQWKDWWKHOHJHQGDVZHKDYHLWPD\KDYH
EHHQIRUPHGE\WKHFU\VWDOOL]DWLRQRIP\WKLFDOFRQFHSWLRQVDERXWDQXFOHXVRIJHQXLQHWUDGLWLRQ,QWKLVYLHZ,DP
XSKHOGE\DPRVWVDJDFLRXVDQGDFFXUDWHVFKRODU0U($)UHHPDQZKRILQGVLQ&DUORYLQJLDQURPDQFHDQH[FHOOHQW
LOOXVWUDWLRQRIWKHSUREOHPEHIRUHXV
7KH&KDUOHPDJQHRIURPDQFHLVDP\WKLFDOSHUVRQDJH+HLVVXSSRVHGWRKDYHEHHQD)UHQFKPDQDWDWLPHZKHQ
QHLWKHUWKH)UHQFKQDWLRQQRUWKH)UHQFKODQJXDJHFDQSURSHUO\EHVDLGWRKDYHH[LVWHGDQGKHLVUHSUHVHQWHGDVD
GRXJKW\FUXVDGHUDOWKRXJKFUXVDGLQJZDVQRWWKRXJKWRIXQWLOORQJDIWHUWKH.DUROLQJLDQHUD7KHOHJHQGDU\GHHGVRI
&KDUOHPDJQHDUHQRWFRQIRUPHGWRWKHRUGLQDU\UXOHVRIJHRJUDSK\DQGFKURQRORJ\+HLVDP\WKDQGZKDWLVPRUH
KHLVDVRODUP\WKDQDYDWDURUDWOHDVWDUHSUHVHQWDWLYHRI2GLQLQKLVVRODUFDSDFLW\,ILQKLVFDVHOHJHQGZHUHQRW
FRQWUROOHGDQGUHFWLILHGE\KLVWRU\KHZRXOGEHIRUXVDVXQUHDODV$JDPHPQRQ
+LVWRU\KRZHYHUWHOOVXVWKDWWKHUHZDVDQ(PSHURU.DUO*HUPDQLQUDFHQDPHDQGODQJXDJHZKRZDVRQHRIWKH
WZRRUWKUHHJUHDWHVWPHQRIDFWLRQWKDWWKHZRUOGKDVHYHUVHHQDQGZKRLQWKHQLQWKFHQWXU\UXOHGRYHUDOO:HVWHUQ
(XURSH7RWKHKLVWRULF.DUOFRUUHVSRQGVLQPDQ\SDUWLFXODUVWKHP\WKLFDO&KDUOHPDJQH7KHOHJHQGKDVSUHVHUYHGWKH
IDFWZKLFKZLWKRXWWKHLQIRUPDWLRQVXSSOLHGE\KLVWRU\ZHPLJKWSHUKDSVVHWGRZQDVDILFWLRQWKDWWKHUHZDVDWLPH
ZKHQ*HUPDQ\*DXO,WDO\DQGSDUWRI6SDLQIRUPHGDVLQJOHHPSLUH$QGDV0U)UHHPDQKDVZHOOREVHUYHGWKH
P\WKLFDOFUXVDGHVRI&KDUOHPDJQHDUHJRRGHYLGHQFHWKDWWKHUHZHUHFUXVDGHVDOWKRXJKWKHUHDO.DUOKDGQRWKLQJ
ZKDWHYHUWRGRZLWKRQH
1RZWKHFDVHRI$JDPHPQRQPD\EHPXFKOLNHWKDWRI&KDUOHPDJQHH[FHSWWKDWZHQRORQJHUKDYHKLVWRU\WRKHOSXV
LQUHFWLI\LQJWKHOHJHQG7KH,OLDGSUHVHUYHVWKHWUDGLWLRQRIDWLPHZKHQDODUJHSRUWLRQRIWKHLVODQGVDQGPDLQODQGRI
*UHHFHZHUHDWOHDVWSDUWLDOO\VXEMHFWWRDFRPPRQVX]HUDLQDQGDV0U)UHHPDQKDVDJDLQVKUHZGO\VXJJHVWHGWKH
DVVLJQPHQWRIDSODFHOLNH0\NHQDLLQVWHDGRI$WKHQVRU6SDUWDRU$UJRVDVWKHVHDWRIWKHVX]HUDLQW\LVVWURQJ
HYLGHQFHRIWKHWUXVWZRUWKLQHVVRIWKHWUDGLWLRQ,WDSSHDUVWRVKRZWKDWWKHOHJHQGZDVFRQVWUDLQHGE\VRPH
UHPHPEHUHGIDFWLQVWHDGRIEHLQJJXLGHGE\JHQHUDOSUREDELOLW\&KDUOHPDJQH¶VVHDWRIJRYHUQPHQWKDVEHHQ
WUDQVIHUUHGLQURPDQFHIURP$DFKHQWR3DULVKDGLWUHDOO\EHHQDW3DULVVD\V0U)UHHPDQQRRQHZRXOGKDYHWKRXJKW
RIWUDQVIHUULQJLWWR$DFKHQ0RUHRYHUWKHVWRU\RI$JDPHPQRQWKRXJKXQFRQWUROOHGE\KLVWRULFUHFRUGVLVKHUHDW
OHDVWVXSSRUWHGE\DUFKDHRORJLFUHPDLQVZKLFKSURYH0\NHQDLWRKDYHEHHQDWVRPHWLPHRURWKHUDSODFHRIJUHDW
FRQVHTXHQFH7KHQDVWRWKH7URMDQZDUZHNQRZWKDWWKH*UHHNVVHYHUDOWLPHVFURVVHGWKH$(JDHDQDQGFRORQL]HGD
ODUJHSDUWRIWKHVHDFRDVWRI$VLD0LQRU,QRUGHUWRGRWKLVLWZDVQHFHVVDU\WRRXVWIURPWKHLUKRPHVPDQ\ZDUOLNH
FRPPXQLWLHVRI/\GLDQVDQG%LWK\QLDQVDQGZHPD\EHVXUHWKDWWKLVZDVQRWGRQHZLWKRXWSURORQJHGILJKWLQJ7KHUH
PD\YHU\SUREDEO\KDYHEHHQQRZDQGWKHQDOHY\HQPDVVHLQSUHKLVWRULF*UHHFHDVWKHUHZDVLQPHGLDHYDO(XURSH
DQGZKHWKHUWKHJUHDWVX]HUDLQDW0\NHQDLHYHUDWWHQGHGRQHRUQRWOHJHQGZRXOGEHVXUHWRVHQGKLPRQVXFKDQ
H[SHGLWLRQDVLWDIWHUZDUGVVHQW&KDUOHPDJQHRQDFUXVDGH
,WLVWKHUHIRUHTXLWHSRVVLEOHWKDW$JDPHPQRQDQG0HQHODRVPD\UHSUHVHQWGLPO\UHPHPEHUHGVRYHUHLJQVRUKHURHV
ZLWKWKHLUFKDUDFWHUVDQGDFWLRQVGLVWRUWHGWRVXLWWKHH[LJHQFLHVRIDQDUUDWLYHIRXQGHGXSRQDVRODUP\WK7KHFKDUDFWHU
RIWKH1LEHOXQJHQOLHGKHUHZHOOLOOXVWUDWHVWKDWRIWKH,OLDG6LHJIULHGDQG%UXQKLOG+DJHQDQG*XQWKHUVHHPWREH
PHUHSHUVRQLILFDWLRQVRISK\VLFDOSKHQRPHQDEXW(W]HODQG'LHWULFKDUHQRQHRWKHUWKDQ$WWLODDQG7KHRGRULF
VXUURXQGHGZLWKP\WKLFDODWWULEXWHVDQGHYHQWKHFRQFHSWLRQRI%UXQKLOGKDVEHHQVXSSRVHGWRFRQWDLQHOHPHQWV
GHULYHGIURPWKHWUDGLWLRQDOUHFROOHFWLRQRIWKHKLVWRULFDO%UXQHKDXOW:KHQWKHUHIRUH$FKLOOHXVLVVDLGOLNHDWUXHVXQ
JRGWRKDYHGLHGE\DZRXQGIURPDVKDUSLQVWUXPHQWLQWKHRQO\YXOQHUDEOHSDUWRIKLVERG\ZHPD\UHSO\WKDWWKH
OHJHQGDU\&KDUOHPDJQHFRQGXFWVKLPVHOILQPDQ\UHVSHFWVOLNHDVRODUGHLW\,I2G\VVHXVGHWDLQHGE\.DO\SVR
UHSUHVHQWVWKHVXQHQVQDUHGDQGKHOGFDSWLYHE\WKHSDOHJRGGHVVRIQLJKWWKHOHJHQGRI)UHGHULF%DUEDURVVDDVOHHSLQD
7KXULQJLDQPRXQWDLQHPERGLHVDSRUWLRQRIDNLQGUHGFRQFHSWLRQ:HNQRZWKDW&KDUOHPDJQHDQG)UHGHULFKDYHEHHQ
VXEVWLWXWHGIRU2GLQZHPD\VXVSHFWWKDWZLWKWKHP\WKLFDOLPSHUVRQDWLRQVRI$FKLOOHXVDQG2G\VVHXVVRPHWUDGLWLRQDO
ILJXUHVPD\EHEOHQGHG:HVKRXOGUHPHPEHUWKDWLQHDUO\WLPHVWKHVRODUP\WKZDVDVRUWRIW\SHDIWHUZKLFKDOO
ZRQGHUIXOVWRULHVZRXOGEHSDWWHUQHGDQGWKDWWRVXFKDW\SHWUDGLWLRQDOVRZRXOGEHPDGHWRFRQIRUP
,QVXJJHVWLQJWKLVYLHZZHDUHQRWRSHQLQJWKHGRRUWR(XKHPHULVP,IWKHUHLVDQ\RQHFRQFOXVLRQFRQFHUQLQJWKH
+RPHULFSRHPVZKLFKWKHODERXUVRIDZKROHJHQHUDWLRQRIVFKRODUVPD\EHVDLGWRKDYHVDWLVIDFWRULO\HVWDEOLVKHGLWLV
WKLVWKDWQRWUXVWZRUWK\KLVWRU\FDQEHREWDLQHGIURPHLWKHUWKH,OLDGRUWKH2G\VVH\PHUHO\E\VLIWLQJRXWWKHP\WKLFDO
HOHPHQW(YHQLIWKHSRHPVFRQWDLQWKHIDLQWUHPLQLVFHQFHRIDQDFWXDOHYHQWWKDWHYHQWLVLQH[WULFDEO\ZUDSSHGXSLQ
P\WKLFDOSKUDVHRORJ\VRWKDWE\QRFXQQLQJRIWKHVFKRODUFDQLWEHFRQVWUXHGLQWRKLVWRU\,QYLHZRIWKLVLWLVTXLWH
XVHOHVVIRU0U*ODGVWRQHWRDWWHPSWWREDVHKLVWRULFDOFRQFOXVLRQVXSRQWKHIDFWWKDW+HOHQDLVDOZD\VFDOOHG³$UJLYH
+HOHQ´RUWRGUDZHWKQRORJLFDOLQIHUHQFHVIURPWKHFLUFXPVWDQFHVWKDW0HQHODRV$FKLOOHXVDQGWKHUHVWRIWKH*UHHN
KHURHVKDYH\HOORZKDLUZKLOHWKH7URMDQVDUHQHYHUVRGHVFULEHG7KH$UJRVRIWKHP\WKLVQRWWKHFLW\RI
3HORSRQQHVRVWKRXJKGRXEWOHVVVRFRQVWUXHGHYHQLQ+RPHU¶VWLPH,WLV³WKHEULJKWODQG´ZKHUH=HXVUHVLGHVDQGWKH
HSLWKHWLVDSSOLHGWRKLVZLIH+HUHDQGKLVGDXJKWHU+HOHQDDVZHOODVWRWKHGRJRI2G\VVHXVZKRUHDSSHDUVZLWK
6DUDPH\DVLQWKH9HGD$VIRU\HOORZKDLUWKHUHLVQRHYLGHQFHWKDW*UHHNVKDYHHYHUFRPPRQO\SRVVHVVHGLWEXWQR
RWKHUFRORXUZRXOGGRIRUDVRODUKHURDQGLWDFFRUGLQJO\FKDUDFWHUL]HVWKHHQWLUHFRPSDQ\RIWKHPZKHUHYHUIRXQG
ZKLOHIRUWKH7URMDQVRUFKLOGUHQRIQLJKWLWLVQRWUHTXLUHG
$ZLGHUDFTXDLQWDQFHZLWKWKHUHVXOWVZKLFKKDYHEHHQREWDLQHGGXULQJWKHSDVWWKLUW\\HDUVE\WKHFRPSDUDWLYHVWXG\
RIODQJXDJHVDQGP\WKRORJLHVZRXOGKDYHOHG0U*ODGVWRQHWRUHFRQVLGHUPDQ\RIKLVYLHZVFRQFHUQLQJWKH+RPHULF
SRHPVDQGPLJKWSHUKDSVKDYHOHGKLPWRFXWRXWKDOIRUWZRWKLUGVRIKLVERRNDVKRSHOHVVO\DQWLTXDWHG7KHFKDSWHU
RQWKHGLYLQLWLHVRI2O\PSRVZRXOGFHUWDLQO\KDYHKDGWREHUHZULWWHQDQGWKHULGLFXORXVWKHRU\RIDSULPHYDO
UHYHODWLRQDEDQGRQHG2QHFDQKDUGO\SUHVHUYHRQH¶VJUDYLW\ZKHQ0U*ODGVWRQHGHULYHV$SROORIURPWKH+HEUHZ
0HVVLDKDQG$WKHQHIURPWKH/RJRV7RDFFUHGLW+RPHUZLWKDQDFTXDLQWDQFHZLWKWKHGRFWULQHRIWKH/RJRVZKLFK
GLGQRWH[LVWXQWLOWKHWLPHRI3KLORDQGGLGQRWUHFHLYHLWVDXWKRUL]HG&KULVWLDQIRUPXQWLOWKHPLGGOHRIWKHVHFRQG
FHQWXU\DIWHU&KULVWLVFHUWDLQO\DVWUDQJHSURFHHGLQJ:HVKDOOQH[WSHUKDSVEHLQYLWHGWREHOLHYHWKDWWKHDXWKRUVRIWKH
9ROVXQJD6DJDREWDLQHGWKHFRQFHSWLRQRI6LJXUGIURPWKH³7KLUW\1LQH$UWLFOHV´,WLVWUXHWKDWWKHVHGHLWLHV$WKHQH
DQG$SROORDUHZLVHUSXUHUDQGPRUHGLJQLILHGRQWKHZKROHWKDQDQ\RIWKHRWKHUGLYLQLWLHVRIWKH+RPHULF
2O\PSRV7KH\DORQHDV0U*ODGVWRQHWUXO\REVHUYHVDUHQHYHUGHFHLYHGRUIUXVWUDWHG)RUDOO+HOODV$SROORZDVWKH
LQWHUSUHWHURIIXWXULW\DQGLQWKHPDLG$WKHQHZHKDYHSHUKDSVWKHKLJKHVWFRQFHSWLRQRIGHLW\WRZKLFKWKH*UHHN
PLQGKDGDWWDLQHGLQWKHHDUO\WLPHV,QWKH9HGD$WKHQHLVQRWKLQJEXWWKHGDZQEXWLQWKH*UHHNP\WKRORJ\ZKLOH
WKHPHUHO\VHQVXRXVJORULHVRIGD\EUHDNDUHDVVLJQHGWR(RV$WKHQHEHFRPHVWKHLPSHUVRQDWLRQRIWKHLOOXPLQDWLQJDQG
NQRZOHGJHJLYLQJOLJKWRIWKHVN\$VWKHGDZQVKHLVGDXJKWHURI=HXVWKHVN\DQGLQP\WKLFODQJXDJHVSULQJVIURP
KLVIRUHKHDGEXWDFFRUGLQJWRWKH*UHHNFRQFHSWLRQWKLVLPDJHU\VLJQLILHVWKDWVKHVKDUHVPRUHWKDQDQ\RWKHUGHLW\
LQWKHERXQGOHVVZLVGRPRI=HXV7KHNQRZOHGJHRI$SROORRQWKHRWKHUKDQGLVWKHSHFXOLDUSULYLOHJHRIWKHVXQ
ZKRIURPKLVORIW\SRVLWLRQVHHVHYHU\WKLQJWKDWWDNHVSODFHXSRQWKHHDUWK(YHQWKHVHFRQGDU\GLYLQLW\+HOLRV
SRVVHVVHVWKLVSUHURJDWLYHWRDFHUWDLQH[WHQW
1H[WWRD+HEUHZ0U*ODGVWRQHSUHIHUVD3KRHQLFLDQDQFHVWU\IRUWKH*UHHNGLYLQLWLHV%XWWKHVDPHODFNRI
DFTXDLQWDQFHZLWKWKHROG$U\DQP\WKRORJ\YLWLDWHVDOOKLVFRQFOXVLRQV1RGRXEWWKH*UHHNP\WKRORJ\LVLQVRPH
SDUWLFXODUVWLQJHGZLWK3KRHQLFLDQFRQFHSWLRQV$SKURGLWHZDVRULJLQDOO\DSXUHO\*UHHNGLYLQLW\EXWLQFRXUVHRIWLPH
VKHDFTXLUHGVRPHRIWKHDWWULEXWHVRIWKH6HPLWLF$VWDUWHDQGZDVKDUGO\LPSURYHGE\WKHFKDQJH$GRQLVLVVLPSO\D
6HPLWLFGLYLQLW\LPSRUWHGLQWR*UHHFH%XWWKHVDPHFDQQRWEHSURYHGRI3RVHLGRQ>@IDUOHVVRI+HUPHVZKRLV
LGHQWLFDOZLWKWKH9HGLF6DUDPH\DVWKHULVLQJZLQGWKHVRQRI6DUDPDWKHGDZQWKHO\LQJWULFNVRPHZLQGJRGZKR
LQYHQWHGPXVLFDQGFRQGXFWVWKHVRXOVRIGHDGPHQWRWKHKRXVHRI+DGHVHYHQDVKLVFRXQWHUSDUWWKH1RUVH2GLQ
UXVKHVRYHUWKHWUHHWRSVOHDGLQJWKHKRVWRIWKHGHSDUWHG:KHQRQHVHHV,ULVWKHPHVVHQJHURI=HXVUHIHUUHGWRD
+HEUHZRULJLQDOEHFDXVHRI-HKRYDK¶VSURPLVHWR1RDKRQHLVDWDORVVWRXQGHUVWDQGWKHUHODWLRQVKLSEHWZHHQWKHWZR
FRQFHSWLRQV1RWKLQJFRXOGEHPRUHQDWXUDOWRWKH*UHHNVWKDQWRFDOOWKHUDLQERZWKHPHVVHQJHURIWKHVN\JRGWR
HDUWKGZHOOLQJPHQWRFDOOLWDWRNHQVHWLQWKHVN\E\-HKRYDKDVWKH+HEUHZVGLGZDVDYHU\GLIIHUHQWWKLQJ:HPD\
DGPLWWKHYHU\FORVHUHVHPEODQFHEHWZHHQWKHP\WKRI%HOOHURSKRQDQG$QWHLDDQGWKDWRI-RVHSKDQG=XOHLNKDEXW
WKHIDFWWKDWWKH*UHHNVWRU\LVH[SOLFDEOHIURP$U\DQDQWHFHGHQWVZKLOHWKH+HEUHZVWRU\LVLVRODWHGPLJKWSHUKDSV
VXJJHVWWKHLQIHUHQFHWKDWWKH+HEUHZVZHUHWKHERUURZHUVDVWKH\XQGRXEWHGO\ZHUHLQWKHFDVHRIWKHP\WKRI(GHQ
/DVWO\WRFRQFOXGHWKDW+HOLRVLVDQ(DVWHUQGHLW\EHFDXVHKHUHLJQVLQWKH(DVWRYHU7KULQDNLDLVZKROO\XQZDUUDQWHG
,VQRW+HOLRVSXUH*UHHNIRUWKHVXQ"DQGZKHUHVKRXOGKLVVDFUHGLVODQGEHSODFHGLIQRWLQWKH(DVW"$VIRUKLVR[HQ
ZKLFKZURXJKWVXFKGLUHGHVWUXFWLRQWRWKHFRPUDGHVRI2G\VVHXVDQGZKLFKVHHPWR0U*ODGVWRQHVRDQRPDORXV
WKH\DUHWKRVHYHU\VDPHXQKDSS\FDWWOHWKHFORXGVZKLFKZHUHVWROHQE\WKHVWRUPGHPRQ&DFXVDQGWKHZLQGGHLW\
+HUPHVDQGZKLFKIXUQLVKHGHQGOHVVPDWHULDOIRUOHJHQGVWRWKHSRHWVRIWKH9HGD
>@,KDYHQRRSLQLRQDVWRWKHQDWLRQDOLW\RIWKH(DUWKVKDNHUDQGUHJDUGLQJWKHHW\PRORJ\RIKLVQDPH,EHOLHYH
ZHFDQKDUGO\GREHWWHUWKDQDFNQRZOHGJHZLWK0U&R[WKDWLWLVXQNQRZQ,WPD\ZHOOEHGRXEWHGKRZHYHU
ZKHWKHUPXFKJRRGLVOLNHO\WRFRPHRIFRPSDULVRQVEHWZHHQ3RVHLGRQ'DJRQ2DQQHVDQG1RDKRURIGLVWLQFWLRQV
EHWZHHQWKHFKLOGUHQRI6KHPDQGWKHFKLOGUHQRI+DP6HH%URZQ¶V3RVHLGRQD/LQNEHWZHHQ6HPLWH+DPLWHDQG
$U\DQ/RQGRQDERRNZKLFKLVRSHQWRVHYHUDORIWKHFULWLFLVPVKHUHGLUHFWHGDJDLQVW0U*ODGVWRQH¶VPDQQHU
RIWKHRUL]LQJ
%XWWKHZKROHVXEMHFWRIFRPSDUDWLYHP\WKRORJ\VHHPVWREHWHUUDLQFRJQLWDWR0U*ODGVWRQH+HSXUVXHVWKHHYHQ
WHQRXURIKLVZD\LQXWWHUGLVUHJDUGRI*ULPPDQG.XKQDQG%UHDODQG'DVHQWDQG%XUQRXI+HWDNHVQRQRWHRIWKH
5LJ9HGDQRUGRHVKHVHHPWRUHDOL]HWKDWWKHUHZDVHYHUDWLPHZKHQWKHDQFHVWRUVRIWKH*UHHNVDQG+LQGXV
ZRUVKLSSHGWKHVDPHJRGV7ZRRUWKUHHWLPHVKHFLWHV0D[0XOOHUEXWPDNHVQRXVHRIWKHFRSLRXVGDWDZKLFKPLJKW
EHJDWKHUHGIURPKLP7KHRQO\ZRUNZKLFKVHHPVUHDOO\WRKDYHDWWUDFWHGKLVDWWHQWLRQLV0-DFROOLRW¶VYHU\
GLVFUHGLWDEOHSHUIRUPDQFHFDOOHG³7KH%LEOHLQ,QGLD´0U*ODGVWRQHGRHVQRWLQGHHGXQUHVHUYHGO\DSSURYHRIWKLV
ERRNEXWQHLWKHUGRHVKHDSSHDUWRVXVSHFWWKDWLWLVDGLVJUDFHIXOSLHFHRIFKDUODWDQU\ZULWWHQE\DPDQLJQRUDQWRIWKH
YHU\UXGLPHQWVRIWKHVXEMHFWZKLFKKHSURIHVVHVWRKDQGOH
0U*ODGVWRQHLVHTXDOO\RXWRIKLVGHSWKZKHQKHFRPHVWRWUHDWSXUHO\SKLORORJLFDOTXHVWLRQV2IWKHVFLHQFHRI
SKLORORJ\DVEDVHGXSRQHVWDEOLVKHGODZVRISKRQHWLFFKDQJHKHVHHPVWRKDYHQRNQRZOHGJHZKDWHYHU+HVHHPVWR
WKLQNWKDWWZRZRUGVDUHVXIILFLHQWO\SURYHGWREHFRQQHFWHGZKHQWKH\DUHVHHQWRUHVHPEOHHDFKRWKHULQVSHOOLQJRULQ
VRXQG7KXVKHTXRWHVDSSURYLQJO\DGHULYDWLRQRIWKHQDPH7KHPLVIURPDQDVVXPHGYHUEWKHP³WRVSHDN´ZKHUHDVLW
LVQRWRULRXVO\GHULYHGIURPWLTKPLDVVWDWXWHFRPHVXOWLPDWHO\IURPVWDUH+LVUHIHUHQFHRIKLHURV³DSULHVW´DQG
JHURQ³DQROGPDQ´WRWKHVDPHURRWLVXWWHUO\EDVHOHVVWKHRQHLVWKH6DQVNULWLVKLUDV³DSRZHUIXOPDQ´WKHRWKHULV
WKH6DQVNULWMDUDQ³DQROGPDQ´7KHOLVWVRIZRUGVRQSDJHVDUHGLVILJXUHGE\PDQ\VXFKHUURUVDQGLQGHHGWKH
ZKROHSXUSRVHIRUZKLFKWKH\DUHJLYHQVKRZVKRZVDGO\0U*ODGVWRQH¶VSKLORORJ\LVLQDUUHDUV7KHWKHRU\RI
1LHEXKU²WKDWWKHZRUGVFRPPRQWR*UHHNDQG/DWLQPRVWO\GHVFULSWLYHRISHDFHIXORFFXSDWLRQVDUH3HODVJLDQ²ZDV
VHUYLFHDEOHHQRXJKLQLWVGD\EXWLVQRZUHQGHUHGZKROO\DQWLTXDWHGE\WKHGLVFRYHU\WKDWVXFKZRUGVDUH$U\DQLQWKH
ZLGHVWVHQVH7KH3HODVJLDQWKHRU\ZRUNVYHU\VPRRWKO\VRORQJDVZHRQO\FRPSDUHWKH*UHHNZLWKWKH/DWLQZRUGV
DVIRULQVWDQFHVXJRQZLWKMXJXPEXWZKHQZHDGGWKH(QJOLVK\RNHDQGWKH6DQVNULW\XJDPLWLVHYLGHQWWKDWZH
KDYHJRWIDURXWRIWKHUDQJHRIWKH3HODVJRL%XWZKDWVKDOOZHVD\ZKHQZHILQG0U*ODGVWRQHFLWLQJWKH/DWLQ
WKDODPXVLQVXSSRUWRIWKLVDQWLTXDWHGWKHRU\"'RXEWOHVVWKHZRUGWKDODPXVLVRUVKRXOGEHVLJQLILFDWLYHRISHDFHIXO
RFFXSDWLRQVEXWLWLVQRWD/DWLQZRUGDWDOOH[FHSWE\DGRSWLRQ2QHPLJKWDVZHOOFLWHWKHZRUGHQVHPEOHWRSURYHWKH
RULJLQDOLGHQWLW\RUNLQVKLSEHWZHHQ(QJOLVKDQG)UHQFK
:KHQ0U*ODGVWRQHOHDYLQJWKHGDQJHURXVJURXQGRISXUHDQGDSSOLHGSKLORORJ\FRQILQHVKLPVHOIWRLOOXVWUDWLQJWKH
FRQWHQWVRIWKH+RPHULFSRHPVKHLVDOZD\VH[FHOOHQW+LVFKDSWHURQWKH³2XWHU*HRJUDSK\´RIWKH2G\VVH\LV
H[FHHGLQJO\LQWHUHVWLQJVKRZLQJDVLWGRHVKRZPXFKPD\EHREWDLQHGIURPWKHSDWLHQWDQGDWWHQWLYHVWXG\RIHYHQD
VLQJOHDXWKRU0U*ODGVWRQH¶VNQRZOHGJHRIWKH685)$&(RIWKH,OLDGDQG2G\VVH\VRWRVSHDNLVH[WHQVLYHDQG
DFFXUDWH,WLVZKHQKHDWWHPSWVWRSHQHWUDWHEHQHDWKWKHVXUIDFHDQGVXUYH\WKHWUHDVXUHVKLGGHQLQWKHERZHOVRIWKH
HDUWKWKDWKHVKRZVKLPVHOIXQSURYLGHGZLWKWKHWDOLVPDQRIWKHZLVHGHUYLVHZKLFKDORQHFDQXQORFNWKRVHP\VWHULHV
%XWPRGHUQSKLORORJ\LVDQH[DFWLQJVFLHQFHWRDSSURDFKLWVKLJKHUSUREOHPVUHTXLUHVDQDPRXQWRISUHSDUDWLRQ
VXIILFLHQWWRWHUULI\DWWKHRXWVHWDOOEXWWKHEROGHVWDQGDPDQZKRKDVKDGWRUHJXODWHWD[DWLRQDQGPDNHRXWILQDQFLDO
VWDWHPHQWVDQGOHDGDSROLWLFDOSDUW\LQDJUHDWQDWLRQPD\ZHOOEHH[FXVHGIRULJQRUDQFHRISKLORORJ\,WLVGLIILFXOW
HQRXJKIRUWKRVHZKRKDYHOLWWOHHOVHWRGREXWWRSRUHRYHUWUHDWLVHVRQSKRQHWLFVDQGWKXPEWKHLUOH[LFRQVWRNHHS
IXOO\DEUHDVWZLWKWKHODWHVWYLHZVLQOLQJXLVWLFV,QPDWWHUVRIGHWDLORQHFDQKDUGO\HYHUEURDFKDQHZK\SRWKHVLV
ZLWKRXWPLVJLYLQJVOHVWVRPHERG\LQVRPHZHHNO\MRXUQDOSXEOLVKHGLQ*HUPDQ\PD\MXVWKDYHDQWLFLSDWHGDQG
UHIXWHGLW<HWZKLOH0U*ODGVWRQHPD\EHH[FXVHGIRUEHLQJXQVRXQGLQSKLORORJ\LWLVIDUOHVVH[FXVDEOHWKDWKH
VKRXOGVLWGRZQWRZULWHDERRNDERXW+RPHUDERXQGLQJLQSKLORORJLFDOVWDWHPHQWVZLWKRXWWKHVOLJKWHVWNQRZOHGJHRI
ZKDWKDVEHHQDFKLHYHGLQWKDWVFLHQFHIRUVHYHUDO\HDUVSDVW,QVSLWHRIDOOGUDZEDFNVKRZHYHUKLVERRNVKRZVDQ
DELGLQJWDVWHIRUVFKRODUO\SXUVXLWVDQGWKHUHIRUHGHVHUYHVDFHUWDLQNLQGRISUDLVH,KRSHWKRXJKMXVWQRZWKHLGHD
VDYRXUVRIWKHOXGLFURXVWKDWWKHGD\PD\VRPHWLPHDUULYHZKHQ285&RQJUHVVPHQDQG6HFUHWDULHVRIWKH7UHDVXU\
ZLOOVSHQGWKHLUYDFDWLRQVLQZULWLQJERRNVDERXW*UHHNDQWLTXLWLHVRULQLOOXVWUDWLQJWKHPHDQLQJRI+RPHULFSKUDVHV
-XO\

9,,7+(35,0(9$/*+267:25/'
12HDUQHVWVWXGHQWRIKXPDQFXOWXUHFDQDV\HWKDYHIRUJRWWHQRUZKROO\RXWOLYHGWKHIHHOLQJRIGHOLJKWDZDNHQHGE\
WKHILUVWSHUXVDORI0D[0XOOHU¶VEULOOLDQW³(VVD\RQ&RPSDUDWLYH0\WKRORJ\´²DZRUNLQZKLFKWKHVFLHQWLILF
SULQFLSOHVRIP\WKLQWHUSUHWDWLRQWKRXJKQRWQHZO\DQQRXQFHGZHUHDWOHDVWEURXJKWKRPHWRWKHUHDGHUZLWKVXFKDQ
DPRXQWRIIUHVKDQGVWULNLQJFRQFUHWHLOOXVWUDWLRQDVWKH\KDGQRWEHIRUHUHFHLYHG<HWLWPXVWKDYHRFFXUUHGWRPRUH
WKDQRQHUHDGHUWKDWZKLOHWKHDQDO\VHVRIP\WKVFRQWDLQHGLQWKLVQREOHHVVD\DUHLQWKHPDLQVRXQGLQSULQFLSOHDQG
FRUUHFWLQGHWDLOQHYHUWKHOHVVWKHDXWKRU¶VWKHRU\RIWKHJHQHVLVRIP\WKLVH[SUHVVHGDQGPRVWOLNHO\FRQFHLYHGLQD
ZD\WKDWLVYHU\VXJJHVWLYHRIFDUHOHVVQHVVDQGIDOODF\7KHUHDUHREYLRXVUHDVRQVIRUGRXEWLQJZKHWKHUWKHH[LVWHQFHRI
P\WKRORJ\FDQEHGXHWRDQ\³GLVHDVH´DEQRUPLW\RUK\SHUWURSK\RIPHWDSKRULQODQJXDJHDQGWKHFULWLFLVPDWRQFH
DULVHVWKDWZLWKWKHP\WKPDNHUVLWZDVQRWVRPXFKWKHFKDUDFWHURIWKHH[SUHVVLRQZKLFKRULJLQDWHGWKHWKRXJKWDVLW
ZDVWKHWKRXJKWZKLFKJDYHFKDUDFWHUWRWKHH[SUHVVLRQ,WLVQRWWKDWWKHHDUO\$U\DQVZHUHP\WKPDNHUVEHFDXVHWKHLU
ODQJXDJHDERXQGHGLQPHWDSKRULWLVWKDWWKH$U\DQPRWKHUWRQJXHDERXQGHGLQPHWDSKRUEHFDXVHWKHPHQDQGZRPHQ
ZKRVSRNHLWZHUHP\WKPDNHUV$QGWKH\ZHUHP\WKPDNHUVEHFDXVHWKH\KDGQRWKLQJEXWWKHSKHQRPHQDRIKXPDQ
ZLOODQGHIIRUWZLWKZKLFKWRFRPSDUHREMHFWLYHSKHQRPHQD7KHUHIRUHLWZDVWKDWWKH\VSRNHRIWKHVXQDVDQ
XQZHDULHGYR\DJHURUDPDWFKOHVVDUFKHUDQGFODVVLILHGLQDQLPDWHQROHVVWKDQDQLPDWHREMHFWVDVPDVFXOLQHDQG
IHPLQLQH0D[0XOOHU¶VZD\RIVWDWLQJKLVWKHRU\ERWKLQWKLV(VVD\DQGLQKLVODWHU/HFWXUHVDIIRUGVRQHDPRQJ
VHYHUDOLQVWDQFHVRIWKHFXULRXVPDQQHULQZKLFKKHFRPELQHVDPDUYHOORXVSHQHWUDWLRQLQWRWKHVLJQLILFDQFHRIGHWDLOV
ZLWKDFHUWDLQORRVHQHVVRIJHQHUDOFRQFHSWLRQ>@7KHSULQFLSOHVRISKLORORJLFDOLQWHUSUHWDWLRQDUHDQLQGLVSHQVDEOH
DLGWRXVLQGHWHFWLQJWKHKLGGHQPHDQLQJRIPDQ\DOHJHQGLQZKLFKWKHSRZHUVRIQDWXUHDUHUHSUHVHQWHGLQWKHJXLVH
RIOLYLQJDQGWKLQNLQJSHUVRQVEXWEHIRUHZHFDQJHWDWWKHVHFUHWRIWKHP\WKPDNLQJWHQGHQF\LWVHOIZHPXVWOHDYH
SKLORORJ\DQGHQWHUXSRQDSV\FKRORJLFDOVWXG\:HPXVWLQTXLUHLQWRWKHFKDUDFWHULVWLFVRIWKDWSULPLWLYHVW\OHRI
WKLQNLQJWRZKLFKLWVHHPHGTXLWHQDWXUDOWKDWWKHVXQVKRXOGEHDQXQHUULQJDUFKHUDQGWKHWKXQGHUFORXGDEODFN
GHPRQRUJLJDQWLFUREEHUILQGLQJKLVULFKO\PHULWHGGRRPDWWKHKDQGVRIWKHLQGLJQDQW/RUGRI/LJKW
>@³7KHH[SUHVVLRQWKDWWKH(ULQ\V6DUDQ\XWKH'DZQILQGVRXWWKHFULPLQDOZDVRULJLQDOO\TXLWHIUHHIURP
P\WKRORJ\,70($1712025(7+$17+$7&5,0(:28/'%(%528*+772/,*+7620('$<25
27+(5,WEHFDPHP\WKRORJLFDOKRZHYHUDVVRRQDVWKHHW\PRORJLFDOPHDQLQJRI(ULQ\VZDVIRUJRWWHQDQGDVVRRQ
DVWKH'DZQDSRUWLRQRIWLPHDVVXPHGWKHUDQNRIDSHUVRQDOEHLQJ´²6FLHQFHRI/DQJXDJHWK HGLWLRQ,,7KLV
SDUDJUDSKLQZKLFKWKHLWDOLFL]LQJLVPLQHFRQWDLQV0D[0XOOHU¶VWKHRU\LQDQXWVKHOO,WVHHPVWRPHZKROO\DW
YDULDQFHZLWKWKHIDFWVRIKLVWRU\7KHIDFWVFRQFHUQLQJSULPLWLYHFXOWXUHZKLFKDUHWREHFLWHGLQWKLVSDSHUZLOOVKRZ
WKDWWKHFDVHLVMXVWWKHRWKHUZD\,QVWHDGRIWKHH[SUHVVLRQ³(ULQ\VILQGVWKHFULPLQDO´EHLQJRULJLQDOO\DPHWDSKRULW
ZDVRULJLQDOO\DOLWHUDOVWDWHPHQWRIZKDWZDVEHOLHYHGWREHIDFW7KH'DZQ QRW³DSRUWLRQRIWLPH´  EXWWKHURV\
IOXVKRIWKHPRUQLQJVN\ ZDVRULJLQDOO\UHJDUGHGDVDUHDOSHUVRQ3ULPLWLYHPHQVWULFWO\VSHDNLQJGRQRWWDONLQ
PHWDSKRUVWKH\EHOLHYHLQWKHOLWHUDOWUXWKRIWKHLUVLPLOHVDQGSHUVRQLILFDWLRQVIURPZKLFKE\VXUYLYDOLQFXOWXUHRXU
SRHWLFPHWDSKRUVDUHOLQHDOO\GHVFHQGHG+RPHU¶VDOOXVLRQWRDUROOLQJVWRQHDVHVVXPHQRVRU³\HDUQLQJ´ WRNHHSRQ
UROOLQJ LVWRXVDPHUHILJXUDWLYHH[SUHVVLRQEXWWRWKHVDYDJHLWLVWKHGHVFULSWLRQRIDIDFW
$PRQJUHFHQWWUHDWLVHVZKLFKKDYHGHDOWZLWKWKLVLQWHUHVWLQJSUREOHPZHVKDOOILQGLWDGYDQWDJHRXVWRJLYHHVSHFLDO
DWWHQWLRQWR0U7\ORU¶V³3ULPLWLYH&XOWXUH´>@RQHRIWKHIHZHUXGLWHZRUNVZKLFKDUHDWRQFHWUXO\JUHDWDQG
WKRURXJKO\HQWHUWDLQLQJ7KHOHDUQLQJGLVSOD\HGLQLWZRXOGGRFUHGLWWRD*HUPDQVSHFLDOLVWERWKIRUH[WHQWDQGIRU
PLQXWHQHVVZKLOHWKHRUGHUO\DUUDQJHPHQWRIWKHDUJXPHQWVDQGWKHHOHJDQWOXFLGLW\RIWKHVW\OHDUHVXFKDVZHDUH
DFFXVWRPHGWRH[SHFWIURP)UHQFKHVVD\ZULWHUV$QGZKDWLVVWLOOPRUHDGPLUDEOHLVWKHZD\LQZKLFKWKHHQWKXVLDVP
FKDUDFWHULVWLFRIDJHQLDODQGRULJLQDOVSHFXODWRULVWHPSHUHGE\WKHSDWLHQFHDQGFDXWLRQRIDFRROKHDGHGFULWLF
3DWLHQFHDQGFDXWLRQDUHQRZKHUHPRUHQHHGHGWKDQLQZULWHUVZKRGHDOZLWKP\WKRORJ\DQGZLWKSULPLWLYHUHOLJLRXV
LGHDVEXWWKHVHTXDOLWLHVDUHWRRVHOGRPIRXQGLQFRPELQDWLRQZLWKWKHVSHFXODWLYHEROGQHVVZKLFKLVUHTXLUHGZKHQ
IUHVKWKHRULHVDUHWREHIUDPHGRUQHZSDWKVRILQYHVWLJDWLRQRSHQHG7KHVWDWHRIPLQGLQZKLFKWKHH[SODLQLQJSRZHUV
RIDIDYRXULWHWKHRU\DUHIRQGO\FRQWHPSODWHGLVWRVRPHH[WHQWDQWDJRQLVWLFWRWKHVWDWHRIPLQGLQZKLFKIDFWVDUH
VHHQZLWKWKHH\HRILPSDUWLDOFULWLFLVPLQDOOWKHLUREVWLQDWHDQGXQFRPSURPLVLQJUHDOLW\7REHDEOHWRSUHVHUYHWKH
EDODQFHEHWZHHQWKHWZRRSSRVLQJWHQGHQFLHVLVWRJLYHHYLGHQFHRIWKHPRVWFRQVXPPDWHVFLHQWLILFWUDLQLQJ,WLVIURP
WKHZDQWRIVXFKDEDODQFHWKDWWKHUHFHQWJUHDWZRUNRI0U&R[LVDWWLPHVVRXQVDWLVIDFWRU\,WPD\,IHDUVHHPLOO
QDWXUHGWRVD\VREXWWKHHDJHUQHVVZLWKZKLFK0U&R[ZD\OD\VHYHU\DYDLODEOHLOOXVWUDWLRQRIWKHSK\VLFDOWKHRU\RI
WKHRULJLQRIP\WKVKDVQRZDQGWKHQWKHFXULRXVHIIHFWRIZHDNHQLQJWKHUHDGHU¶VFRQYLFWLRQRIWKHVRXQGQHVVRIWKH
WKHRU\)RUP\RZQSDUWWKRXJKE\QRPHDQVLQFOLQHGWRZDYHULQDGKHUHQFHWRDGRFWULQHRQFHDGRSWHGRQJRRG
JURXQGV,QHYHUIHOWVRPXFKOLNHUHEHOOLQJDJDLQVWWKHP\WKRORJLFVXSUHPDF\RIWKH6XQDQGWKH'DZQDVZKHQ
UHDGLQJ0U&R[¶VYROXPHV7KDW0U7\ORUZKLOHGHIHQGLQJWKHVDPHIXQGDPHQWDOWKHRU\DZDNHQVQRVXFKUHEHOOLRXV
IHHOLQJVLVGXHWRKLVFOHDUSHUFHSWLRQDQGUHDOL]DWLRQRIWKHIDFWWKDWLWLVLPSRVVLEOHWRJHQHUDOL]HLQDVLQJOHIRUPXOD
VXFKPDQ\VLGHGFRUUHVSRQGHQFHVDVWKRVHZKLFKSULPLWLYHSRHWU\HQGSKLORVRSK\KDYHGLVFHUQHGEHWZHHQWKHOLIHRI
PDQDQGWKHOLIHRIRXWZDUGQDWXUH:KRVRJRHVURDPLQJXSDQGGRZQWKHHOIODQGRISRSXODUIDQFLHVZLWKVROHLQWHQW
WRUHVROYHHDFKHSLVRGHRIP\WKLQWRVRPHDQVZHULQJSK\VLFDOHYHQWKLVRQO\FULWHULRQEHLQJRXWZDUGUHVHPEODQFH
FDQQRWEHWUXVWHGLQKLVFRQFOXVLRQVVLQFHZKHUHYHUKHWXUQVIRUHYLGHQFHKHLVVXUHWRILQGVRPHWKLQJWKDWFDQEHPDGH
WRVHUYHDVVXFK$V0U7\ORUREVHUYHVQRKRXVHKROGOHJHQGRUQXUVHU\UK\PHLVVDIHIURPKLVKHUPHQHXWLFV³6KRXOG
KHIRULQVWDQFHGHPDQGDVKLVSURSHUW\WKHQXUVHU\µ6RQJRI6L[SHQFH¶KLVFODLPZRXOGEHHDVLO\HVWDEOLVKHG
REYLRXVO\WKHIRXUDQGWZHQW\EODFNELUGVDUHWKHIRXUDQGWZHQW\KRXUVDQGWKHSLHWKDWKROGVWKHPLVWKHXQGHUO\LQJ
HDUWKFRYHUHGZLWKWKHRYHUDUFKLQJVN\KRZWUXHDWRXFKRIQDWXUHLWLVWKDWZKHQWKHSLHLVRSHQHGWKDWLVZKHQGD\
EUHDNVWKHELUGVEHJLQWRVLQJWKH.LQJLVWKH6XQDQGKLVFRXQWLQJRXWKLVPRQH\LVSRXULQJRXWWKHVXQVKLQHWKH
JROGHQVKRZHURI'DQDHWKH4XHHQLVWKH0RRQDQGKHUWUDQVSDUHQWKRQH\WKHPRRQOLJKWWKH0DLGLVWKHµURV\
ILQJHUHG¶'DZQZKRULVHVEHIRUHWKH6XQKHUPDVWHUDQGKDQJVRXWWKHFORXGVKLVFORWKHVDFURVVWKHVN\WKH
SDUWLFXODUEODFNELUGZKRVRWUDJLFDOO\HQGVWKHWDOHE\VQLSSLQJRIIKHUQRVHLVWKHKRXURIVXQULVH´,QDOOWKLV
LQWHUSUHWDWLRQWKHUHLVQRDSULRULLPSUREDELOLW\VDYHSHUKDSVLQLWVXQEURNHQV\PPHWU\DQGFRPSOHWHQHVV7KDWVRPH
SRLQWVDWOHDVWRIWKHVWRU\DUHWKXVGHULYHGIURPDQWLTXHLQWHUSUHWDWLRQVRISK\VLFDOHYHQWVLVLQKDUPRQ\ZLWKDOOWKDW
ZHNQRZFRQFHUQLQJQXUVHU\UK\PHV,QVKRUW³WKHWLPHKRQRXUHGUK\PHUHDOO\ZDQWVEXWRQHWKLQJWRSURYHLWDVXQ
P\WKWKDWRQHWKLQJEHLQJDSURRIE\VRPHDUJXPHQWPRUHYDOLGWKDQDQDORJ\´7KHFKDUDFWHURIWKHDUJXPHQWZKLFK
LVODFNLQJPD\EHLOOXVWUDWHGE\DUHIHUHQFHWRWKHUK\PHDERXW-DFNDQG-LOOH[SODLQHGVRPHWLPHVLQFHLQWKHSDSHURQ
³7KH2ULJLQVRI)RON/RUH´,IWKHDUJXPHQWEHWKRXJKWYDOLGZKLFKVKRZVWKHVHLOOIDWHGFKLOGUHQWREHWKHVSRWVRQWKH
PRRQLWLVEHFDXVHWKHSURRIFRQVLVWVQRWLQWKHDQDORJ\ZKLFKLVLQWKLVFDVHQRWHVSHFLDOO\REYLRXVEXWLQWKHIDFW
WKDWLQWKH(GGDDQGDPRQJLJQRUDQW6ZHGLVKSHDVDQWVRIRXURZQGD\WKHVWRU\RI-DFNDQG-LOOLVDFWXDOO\JLYHQDVDQ
H[SODQDWLRQRIWKHPRRQVSRWV7RWKHQHJOHFWRIWKLVGLVWLQFWLRQEHWZHHQZKDWLVSODXVLEOHDQGZKDWLVVXSSRUWHGE\
GLUHFWHYLGHQFHLVGXHPXFKRIWKHFUXGHVSHFXODWLRQZKLFKHQFXPEHUVWKHVWXG\RIP\WKV
>@3ULPLWLYH&XOWXUH5HVHDUFKHVLQWRWKH'HYHORSPHQWRI0\WKRORJ\3KLORVRSK\5HOLJLRQ$UWDQG&XVWRP%\
(GZDUG%7\ORUYROVYR/RQGRQ
,WLVZKHQ0U7\ORUPHUJHVWKHVWXG\RIP\WKRORJ\LQWRWKHZLGHULQTXLU\LQWRWKHFKDUDFWHULVWLFIHDWXUHVRIWKHPRGH
RIWKLQNLQJLQZKLFKP\WKVRULJLQDWHGWKDWZHFDQEHVWDSSUHFLDWHWKHSUDFWLFDOYDOXHRIWKDWXQLRQRIVSHFXODWLYH
EROGQHVVDQGFULWLFDOVREULHW\ZKLFKHYHU\ZKHUHGLVWLQJXLVKHVKLP,WLVSOHDVDQWWRPHHWZLWKDZULWHUZKRFDQWUHDWRI
SULPLWLYHUHOLJLRXVLGHDVZLWKRXWORVLQJKLVKHDGRYHUDOOHJRU\DQGV\PEROLVPDQGZKRGXO\UHDOL]HVWKHIDFWWKDWD
VDYDJHLVQRWDUDEELQLFDOFRPPHQWDWRURUDFDEDOLVWRUD5RVLFUXFLDQEXWDSODLQPDQZKRGUDZVFRQFOXVLRQVOLNH
RXUVHOYHVWKRXJKZLWKIHHEOHLQWHOOLJHQFHDQGVFDQW\NQRZOHGJH7KHP\VWLFDOOHJRU\ZLWKZKLFKVXFKPRGHUQZULWHUV
DV/RUG%DFRQKDYHLQYHVWHGWKHP\WKVRIDQWLTXLW\LVQRSDUWRIWKHLURULJLQDOFORWKLQJEXWLVUDWKHUWKHODWHSURGXFWRI
DVW\OHRIUHDVRQLQJIURPDQDORJ\TXLWHVLPLODUWRWKDWZKLFKZHVKDOOSHUFHLYHWRKDYHJXLGHGWKHP\WKPDNHUVLQWKHLU
SULPLWLYHFRQVWUXFWLRQV7KHP\WKVDQGFXVWRPVDQGEHOLHIVZKLFKLQDQDGYDQFHGVWDJHRIFXOWXUHVHHPPHDQLQJOHVV
VDYHZKHQFKDUDFWHUL]HGE\VRPHTXDLQWO\ZURXJKWGHYLFHRIV\PEROLFH[SODQDWLRQGLGQRWVHHPPHDQLQJOHVVLQWKH
ORZHUFXOWXUHZKLFKJDYHELUWKWRWKHP0\WKVOLNHZRUGVVXUYLYHWKHLUSULPLWLYHPHDQLQJV,QWKHHDUO\VWDJHWKHP\WK
LVSDUWDQGSDUFHORIWKHFXUUHQWPRGHRISKLORVRSKL]LQJWKHH[SODQDWLRQZKLFKLWRIIHUVLVIRUWKHWLPHWKHQDWXUDORQH
WKHRQHZKLFKZRXOGPRVWUHDGLO\RFFXUWRDQ\RQHWKLQNLQJRQWKHWKHPHZLWKZKLFKWKHP\WKLVFRQFHUQHG%XWE\
DQGE\WKHPRGHRISKLORVRSKL]LQJKDVFKDQJHGH[SODQDWLRQVZKLFKIRUPHUO\VHHPHGTXLWHREYLRXVQRORQJHURFFXUWR
DQ\RQHEXWWKHP\WKKDVDFTXLUHGDQLQGHSHQGHQWVXEVWDQWLYHH[LVWHQFHDQGFRQWLQXHVWREHKDQGHGGRZQIURP
SDUHQWVWRFKLOGUHQDVVRPHWKLQJWUXHWKRXJKQRRQHFDQWHOOZK\LWLVWUXH/DVWO\WKHP\WKLWVHOIJUDGXDOO\IDGHVIURP
UHPHPEUDQFHRIWHQOHDYLQJEHKLQGLWVRPHXWWHUO\XQLQWHOOLJLEOHFXVWRPRUVHHPLQJO\DEVXUGVXSHUVWLWLRXVQRWLRQ)RU
H[DPSOHWRUHFXUWRDQLOOXVWUDWLRQDOUHDG\FLWHGLQDSUHYLRXVSDSHULWLVVWLOOEHOLHYHGKHUHDQGWKHUHE\VRPH
YHQHUDEOHJUDQQ\WKDWLWLVZLFNHGWRNLOOURELQVEXWKHZKRVKRXOGDWWULEXWHWKHEHOLHIWRWKHROGJUDQQ\¶VUHILQHG
V\PSDWK\ZLWKDOOVHQWLHQWH[LVWHQFHZRXOGEHPDNLQJRQHRIWKHEOXQGHUVZKLFKDUHDOZD\VFRPPLWWHGE\WKRVHZKR
UHDVRQDSULRULDERXWKLVWRULFDOPDWWHUVZLWKRXWIROORZLQJWKHKLVWRULFDOPHWKRG$WDQHDUOLHUGDWHWKHVXSHUVWLWLRQ
H[LVWHGLQWKHVKDSHRIDEHOLHIWKDWWKHNLOOLQJRIDURELQSRUWHQGVVRPHFDODPLW\LQDVWLOOHDUOLHUIRUPWKHFDODPLW\LV
VSHFLILHGDVGHDWKDQGDJDLQVWLOOHDUOLHUDVGHDWKE\OLJKWQLQJ$QRWKHUVWHSEDFNZDUGUHYHDOVWKDWWKHGUHDGVDQFWLW\
RIWKHURELQLVRZLQJWRWKHIDFWWKDWKHLVWKHELUGRI7KRUWKHOLJKWQLQJJRGDQGILQDOO\ZHUHDFKWKDWSULPLWLYHVWDJH
RISKLORVRSKL]LQJLQZKLFKWKHOLJKWQLQJLVH[SODLQHGDVDUHGELUGGURSSLQJIURPLWVEHDNDZRUPZKLFKFOHDYHWKWKH
URFNV$JDLQWKHEHOLHIWKDWVRPHKDUPLVVXUHWRFRPHWRKLPZKRVDYHVWKHOLIHRIDGURZQLQJPDQLVXQLQWHOOLJLEOH
XQWLOLWLVUHJDUGHGDVDFDVHRIVXUYLYDOLQFXOWXUH,QWKHROGHUIRUPRIWKHVXSHUVWLWLRQLWLVKHOGWKDWWKHUHVFXHUZLOO
VRRQHURUODWHUEHGURZQHGKLPVHOIDQGWKXVZHSDVVWRWKHIHWLFKLVWLFLQWHUSUHWDWLRQRIGURZQLQJDVWKHVHL]LQJRIWKH
XQIRUWXQDWHSHUVRQE\WKHZDWHUVSLULWRUQL[\ZKRLVQDWXUDOO\DQJU\DWEHLQJGHSULYHGRIKLVYLFWLPDQGKHQFHIRUWK
EHDUVDVSHFLDOJUXGJHDJDLQVWWKHEROGPRUWDOZKRKDVWKXVGDUHGWRIUXVWUDWHKLP
7KHLQWHUSUHWDWLRQRIWKHOLJKWQLQJDVDUHGELUGDQGRIGURZQLQJDVWKHZRUNRIDVPLOLQJEXWWUHDFKHURXVILHQGDUH
SDUWVRIWKDWSULPLWLYHSKLORVRSK\RIQDWXUHLQZKLFKDOOIRUFHVREMHFWLYHO\H[LVWLQJDUHFRQFHLYHGDVLGHQWLFDOZLWKWKH
IRUFHVXEMHFWLYHO\NQRZQDVYROLWLRQ,WLVWKLVSKLORVRSK\FXUUHQWO\NQRZQDVIHWLFKLVPEXWWUHDWHGE\0U7\ORU
XQGHUWKHVRPHZKDWPRUHFRPSUHKHQVLYHQDPHRI³DQLPLVP´ZKLFKZHPXVWQRZFRQVLGHULQDIHZRILWVPRVW
FRQVSLFXRXVH[HPSOLILFDWLRQV:KHQZHKDYHSURSHUO\FKDUDFWHUL]HGVRPHRIWKHSURFHVVHVZKLFKWKHXQWUDLQHGPLQG
KDELWXDOO\JRHVWKURXJKZHVKDOOKDYHLQFLGHQWDOO\DUULYHGDWDIDLUVROXWLRQRIWKHJHQHVLVRIP\WKRORJ\
/HWXVILUVWQRWHWKHHDVHZLWKZKLFKWKHEDUEDULFRUXQFXOWLYDWHGPLQGUHDFKHVDOOPDQQHURIDSSDUHQWO\IDQFLIXO
FRQFOXVLRQVWKURXJKUHFNOHVVUHDVRQLQJIURPDQDORJ\,WLVWKURXJKWKHRSHUDWLRQRIFHUWDLQODZVRILGHDODVVRFLDWLRQ
WKDWDOOKXPDQWKLQNLQJWKDWRIWKHKLJKHVWDVZHOODVWKDWRIWKHORZHVWPLQGVLVFRQGXFWHGWKHGLVFRYHU\RIWKHODZRI
JUDYLWDWLRQDVZHOODVWKHLQYHQWLRQRIVXFKDVXSHUVWLWLRQDVWKH+DQGRI*ORU\LVDWERWWRPEXWDFDVHRIDVVRFLDWLRQRI
LGHDV7KHGLIIHUHQFHEHWZHHQWKHVFLHQWLILFDQGWKHP\WKRORJLFLQIHUHQFHFRQVLVWVVROHO\LQWKHQXPEHURIFKHFNVZKLFK
LQWKHIRUPHUFDVHFRPELQHWRSUHYHQWDQ\RWKHUWKDQWKHWUXHFRQFOXVLRQIURPEHLQJIUDPHGLQWRDSURSRVLWLRQWRZKLFK
WKHPLQGDVVHQWV&RXQWOHVVDFFXPXODWHGH[SHULHQFHVKDYHWDXJKWWKHPRGHUQWKDWWKHUHDUHPDQ\DVVRFLDWLRQVRILGHDV
ZKLFKGRQRWFRUUHVSRQGWRDQ\DFWXDOFRQQHFWLRQRIFDXVHDQGHIIHFWLQWKHZRUOGRISKHQRPHQDDQGKHKDVOHDUQHG
DFFRUGLQJO\WRDSSO\WRKLVQHZO\IUDPHGQRWLRQVWKHULJLGWHVWRIYHULILFDWLRQ%HVLGHVZKLFKWKHVDPHDFFXPXODWLRQRI
H[SHULHQFHVKDVEXLOWXSDQRUJDQL]HGVWUXFWXUHRILGHDODVVRFLDWLRQVLQWRZKLFKRQO\WKHOHVVH[WUDYDJDQWQHZO\IUDPHG
QRWLRQVKDYHDQ\FKDQFHRIILWWLQJ7KHSULPLWLYHPDQRUWKHPRGHUQVDYDJHZKRLVWRVRPHH[WHQWKLVFRXQWHUSDUW
PXVWUHDVRQZLWKRXWWKHDLGRIWKHVHPXOWLIDULRXVFKHFNV7KDWLPPHQVHPDVVRIDVVRFLDWLRQVZKLFKDQVZHUWRZKDWDUH
FDOOHGSK\VLFDOODZVDQGZKLFKLQWKHPLQGRIWKHFLYLOL]HGPRGHUQKDYHEHFRPHDOPRVWRUJDQLFKDYHQRWEHHQIRUPHG
LQWKHPLQGRIWKHVDYDJHQRUKDVKHOHDUQHGWKHQHFHVVLW\RIH[SHULPHQWDOO\WHVWLQJDQ\RIKLVQHZO\IUDPHGQRWLRQV
VDYHSHUKDSVDIHZRIWKHFRPPRQHVW&RQVHTXHQWO\WKHUHLVQRWKLQJEXWVXSHUILFLDODQDORJ\WRJXLGHWKHFRXUVHRIKLV
WKRXJKWKLWKHURUWKLWKHUDQGWKHFRQFOXVLRQVDWZKLFKKHDUULYHVZLOOEHGHWHUPLQHGE\DVVRFLDWLRQVRILGHDVRFFXUULQJ
DSSDUHQWO\DWKDSKD]DUG+HQFHWKHTXDLQWRUJURWHVTXHIDQFLHVZLWKZKLFK(XURSHDQDQGEDUEDULFIRONORUHLVILOOHGLQ
WKHIUDPLQJRIZKLFKWKHP\WKPDNHUZDVEXWUHDVRQLQJDFFRUGLQJWRWKHEHVWPHWKRGVDWKLVFRPPDQG7RWKLV
VLPSOHVWFODVVLQZKLFKWKHDVVRFLDWLRQRILGHDVLVGHWHUPLQHGE\PHUHDQDORJ\EHORQJVXFKFDVHVDVWKDWRIWKH=XOX
ZKRFKHZVDSLHFHRIZRRGLQRUGHUWRVRIWHQWKHKHDUWRIWKHPDQZLWKZKRPKHLVDERXWWRWUDGHIRUFRZVRUWKH
+HVVLDQODGZKR³WKLQNVKHPD\HVFDSHWKHFRQVFULSWLRQE\FDUU\LQJDEDE\JLUO¶VFDSLQKLVSRFNHWDV\PEROLFZD\RI
UHSXGLDWLQJPDQKRRG´>@$VLPLODUVW\OHRIWKLQNLQJXQGHUOLHVWKHPHGLDHYDOQHFURPDQFHU¶VSUDFWLFHRIPDNLQJD
ZD[HQLPDJHRIKLVHQHP\DQGVKRRWLQJDWLWZLWKDUURZVLQRUGHUWREULQJDERXWWKHHQHP\¶VGHDWKDVDOVRWKHFDVHRI
WKHPDJLFURGPHQWLRQHGLQDSUHYLRXVSDSHUE\PHDQVRIZKLFKDVRXQGWKUDVKLQJFDQEHDGPLQLVWHUHGWRDQDEVHQW
IRHWKURXJKWKHPHGLXPRIDQROGFRDWZKLFKLVLPDJLQHGWRFRYHUKLP7KHSULQFLSOHLQYROYHGKHUHLVRQHZKLFKLV
GRXEWOHVVIDPLOLDUWRPRVWFKLOGUHQDQGLVFORVHO\DNLQWRWKDWZKLFK,UYLQJVRDPXVLQJO\LOOXVWUDWHVLQKLVGRXJKW\
JHQHUDOZKRVWUXWVWKURXJKDILHOGRIFDEEDJHVRUFRUQVWDONVVPLWLQJWKHPWRHDUWKZLWKKLVFDQHDQGLPDJLQLQJ
KLPVHOIDKHURRIFKLYDOU\FRQTXHULQJVLQJOHKDQGHGDKRVWRIFDLWLIIUXIILDQV2IOLNHRULJLQDUHWKHIDQFLHVWKDWWKH
EUHDNLQJRIDPLUURUKHUDOGVDGHDWKLQWKHIDPLO\SUREDEO\EHFDXVHRIWKHGHVWUXFWLRQRIWKHUHIOHFWHGKXPDQLPDJH
WKDWWKH³KDLURIWKHGRJWKDWELW\RX´ZLOOSUHYHQWK\GURSKRELDLIODLGXSRQWKHZRXQGRUWKDWWKHWHDUVVKHGE\KXPDQ
YLFWLPVVDFULILFHGWRPRWKHUHDUWKZLOOEULQJGRZQVKRZHUVXSRQWKHODQG0U7\ORUFLWHV/RUG&KHVWHUILHOG¶VUHPDUN
³WKDWWKHNLQJKDGEHHQLOODQGWKDWSHRSOHJHQHUDOO\H[SHFWHGWKHLOOQHVVWREHIDWDOEHFDXVHWKHROGHVWOLRQLQWKH
7RZHUDERXWWKHNLQJ¶VDJHKDGMXVWGLHGµ6RZLOGDQGFDSULFLRXVLVWKHKXPDQPLQG¶³REVHUYHVWKHHOHJDQWOHWWHU
ZULWHU%XWLQGHHGDV0U7\ORUMXVWO\UHPDUNV³WKHWKRXJKWZDVQHLWKHUZLOGQRUFDSULFLRXVLWZDVVLPSO\VXFKDQ
DUJXPHQWIURPDQDORJ\DVWKHHGXFDWHGZRUOGKDVDWOHQJWKSDLQIXOO\OHDUQHGWREHZRUWKOHVVEXWZKLFKLWLVQRWWRR
PXFKWRGHFODUHZRXOGWRWKLVGD\FDUU\FRQVLGHUDEOHZHLJKWWRWKHPLQGVRIIRXUILIWKVRIWKHKXPDQUDFH´8SRQVXFK
V\PEROLVPDUHEDVHGPRVWRIWKHSUDFWLFHVRIGLYLQDWLRQDQGWKHJUHDWSVHXGRVFLHQFHRIDVWURORJ\³,WLVDQROGVWRU\
WKDWZKHQWZREURWKHUVZHUHRQFHWDNHQLOOWRJHWKHU+LSSRNUDWHVWKHSK\VLFLDQFRQFOXGHGIURPWKHFRLQFLGHQFHWKDW
WKH\ZHUHWZLQVEXW3RVHLGRQLRVWKHDVWURORJHUFRQVLGHUHGUDWKHUWKDWWKH\ZHUHERUQXQGHUWKHVDPHFRQVWHOODWLRQZH
PD\DGGWKDWHLWKHUDUJXPHQWZRXOGEHWKRXJKWUHDVRQDEOHE\DVDYDJH´6RZKHQD0DRULIRUWUHVVLVDWWDFNHGWKH
EHVLHJHUVDQGEHVLHJHGORRNWRVHHLI9HQXVLVQHDUWKHPRRQ7KHPRRQUHSUHVHQWVWKHIRUWUHVVDQGLILWDSSHDUVEHORZ
WKHFRPSDQLRQSODQHWWKHEHVLHJHUVZLOOFDUU\WKHGD\RWKHUZLVHWKH\ZLOOEHUHSXOVHG(TXDOO\SULPLWLYHDQGFKLOGOLNH
ZDV5RXVVHDX¶VWUDLQRIWKRXJKWRQWKHPHPRUDEOHGD\DW/HV&KDUPHWWHVZKHQEHLQJGLVWUHVVHGZLWKGRXEWVDVWRWKH
VDIHW\RIKLVVRXOKHVRXJKWWRGHWHUPLQHWKHSRLQWE\WKURZLQJDVWRQHDWDWUHH³+LWVLJQRIVDOYDWLRQPLVVVLJQRI
GDPQDWLRQ´7KHWUHHEHLQJDODUJHRQHDQGYHU\QHDUDWKDQGWKHUHVXOWRIWKHH[SHULPHQWZDVUHDVVXULQJDQGWKH
\RXQJSKLORVRSKHUZDONHGDZD\ZLWKRXWIXUWKHUPLVJLYLQJVFRQFHUQLQJWKLVPRPHQWRXVTXHVWLRQ>@
>@7\ORURSFLW,
>@5RXVVHDX&RQIHVVLRQV,YL)RUIXUWKHULOOXVWUDWLRQVHHHVSHFLDOO\WKHQRWHRQWKH³GRFWULQHRIVLJQDWXUHV´
VXSUDS
:KHQWKHVDYDJHZKRVHKLJKHVWLQWHOOHFWXDOHIIRUWVUHVXOWRQO\LQVSHFXODWLRQVRIWKLVFKLOGOLNHFKDUDFWHULVFRQIURQWHG
ZLWKWKHSKHQRPHQDRIGUHDPVLWLVHDV\WRVHHZKDWKHZLOOPDNHRIWKHP+LVSUDFWLFDONQRZOHGJHRISV\FKRORJ\LV
WRROLPLWHGWRDGPLWRIKLVGLVWLQJXLVKLQJEHWZHHQWKHVROLGLW\RIZDNLQJH[SHULHQFHDQGZKDWZHPD\FDOOWKH
XQVXEVWDQWLDOQHVVRIWKHGUHDP+HPD\LQGHHGKDYHOHDUQHGWKDWWKHGUHDPLVQRWWREHUHOLHGRQIRUWHOOLQJWKHWUXWK
WKH=XOXIRUH[DPSOHKDVHYHQUHDFKHGWKHSHUYHUVHWULXPSKRIFULWLFDOORJLFDFKLHYHGE\RXURZQ$U\DQDQFHVWRUVLQ
WKHVD\LQJWKDW³GUHDPVJRE\FRQWUDULHV´%XWWKH=XOXKDVQRWOHDUQHGQRUKDGWKHSULPHYDO$U\DQOHDUQHGWR
GLVUHJDUGWKHXWWHUDQFHVRIWKHGUHDPDVEHLQJSXUHO\VXEMHFWLYHSKHQRPHQD7RWKHPLQGDV\HWXQWRXFKHGE\PRGHUQ
FXOWXUHWKHYLVLRQVVHHQDQGWKHYRLFHVKHDUGLQVOHHSSRVVHVVDVPXFKREMHFWLYHUHDOLW\DVWKHJHVWXUHVDQGVKRXWVRI
ZDNLQJKRXUV:KHQWKHVDYDJHUHODWHVKLVGUHDPKHWHOOVKRZKH6$:FHUWDLQGRJVGHDGZDUULRUVRUGHPRQVODVW
QLJKWWKHLPSOLFDWLRQEHLQJWKDWWKHWKLQJVVHHQZHUHREMHFWVH[WHUQDOWRKLPVHOI$V0U6SHQFHUREVHUYHV³KLVUXGH
ODQJXDJHIDLOVWRVWDWHWKHGLIIHUHQFHEHWZHHQVHHLQJDQGGUHDPLQJWKDWKHVDZGRLQJDQGGUHDPLQJWKDWKHGLG)URP
WKLVLQDGHTXDF\RIKLVODQJXDJHLWQRWRQO\UHVXOWVWKDWKHFDQQRWWUXO\UHSUHVHQWWKLVGLIIHUHQFHWRRWKHUVEXWDOVRWKDW
KHFDQQRWWUXO\UHSUHVHQWLWWRKLPVHOI+HQFHLQWKHDEVHQFHRIDQDOWHUQDWLYHLQWHUSUHWDWLRQKLVEHOLHIDQGWKDWRIWKRVH
WRZKRPKHWHOOVKLVDGYHQWXUHVLVWKDWKLV27+(56(/)KDVEHHQDZD\DQGFDPHEDFNZKHQKHDZRNH$QGWKLV
EHOLHIZKLFKZHILQGDPRQJYDULRXVH[LVWLQJVDYDJHWULEHVZHHTXDOO\ILQGLQWKHWUDGLWLRQVRIWKHHDUO\FLYLOL]HG
UDFHV´>@
>@6SHQFHU5HFHQW'LVFXVVLRQVLQ6FLHQFHHWFS³7KH2ULJLQRI$QLPDO:RUVKLS´
/HWXVFRQVLGHUIRUDPRPHQWWKLVDVVXPSWLRQRIWKH27+(56(/)IRUXSRQWKLVLVEDVHGWKHJUHDWPDVVRIFUXGH
LQIHUHQFHZKLFKFRQVWLWXWHVWKHSULPLWLYHPDQ¶VSKLORVRSK\RIQDWXUH7KHK\SRWKHVLVRIWKH27+(56(/)ZKLFK
VHUYHVWRDFFRXQWIRUWKHVDYDJH¶VZDQGHULQJVGXULQJVOHHSLQVWUDQJHODQGVDQGDPRQJVWUDQJHSHRSOHVHUYHVDOVRWR
DFFRXQWIRUWKHSUHVHQFHLQKLVGUHDPVRISDUHQWVFRPUDGHVRUHQHPLHVNQRZQWREHGHDGDQGEXULHG7KHRWKHUVHOIRI
WKHGUHDPHUPHHWVDQGFRQYHUVHVZLWKWKHRWKHUVHOYHVRIKLVGHDGEUHWKUHQMRLQVZLWKWKHPLQWKHKXQWRUVLWVGRZQ
ZLWKWKHPWRWKHZLOGFDQQLEDOEDQTXHW7KXVDULVHVWKHEHOLHILQDQHYHUSUHVHQWZRUOGRIVRXOVRUJKRVWVDEHOLHI
ZKLFKWKHHQWLUHH[SHULHQFHRIXQFLYLOL]HGPDQJRHVWRVWUHQJWKHQDQGH[SDQG7KHH[LVWHQFHRIVRPHWULEHRUWULEHVRI
VDYDJHVZKROO\GHVWLWXWHRIUHOLJLRXVEHOLHIKDVRIWHQEHHQKDVWLO\DVVHUWHGDQGDVRIWHQFDOOHGLQTXHVWLRQ%XWWKHUHLV
QRTXHVWLRQWKDWZKLOHPDQ\VDYDJHVDUHXQDEOHWRIUDPHDFRQFHSWLRQVRJHQHUDODVWKDWRIJRGKRRGRQWKHRWKHUKDQG
QRWULEHKDVHYHUEHHQIRXQGVRORZLQWKHVFDOHRILQWHOOLJHQFHDVQRWWRKDYHIUDPHGWKHFRQFHSWLRQRIJKRVWVRU
VSLULWXDOSHUVRQDOLWLHVFDSDEOHRIEHLQJDQJHUHGSURSLWLDWHGRUFRQMXUHGZLWK,QGHHGLWLVQRWLPSUREDEOHDSULRULWKDW
WKHRULJLQDOLQIHUHQFHLQYROYHGLQWKHQRWLRQRIWKHRWKHUVHOIPD\EHVXIILFLHQWO\VLPSOHDQGREYLRXVWRIDOOZLWKLQWKH
FDSDFLW\RIDQLPDOVHYHQOHVVLQWHOOLJHQWWKDQXQFLYLOL]HGPDQ$QDXWKHQWLFFDVHLVRQUHFRUGRID6N\HWHUULHUZKR
EHLQJDFFXVWRPHGWRREWDLQIDYRXUVIURPKLVPDVWHUE\VLWWLQJRQKLVKDXQFKHVZLOODOVRVLWEHIRUHKLVSHWLQGLDUXEEHU
EDOOSODFHGRQWKHFKLPQH\SLHFHHYLGHQWO\EHVHHFKLQJLWWRMXPSGRZQDQGSOD\ZLWKKLP>@6XFKDIDFWDVWKLVLV
TXLWHLQKDUPRQ\ZLWK$XJXVWH&RPWH¶VVXJJHVWLRQWKDWVXFKLQWHOOLJHQWDQLPDOVDVGRJVDSHVDQGHOHSKDQWVPD\EH
FDSDEOHRIIRUPLQJDIHZIHWLFKLVWLFQRWLRQV7KHEHKDYLRXURIWKHWHUULHUKHUHUHVWVXSRQWKHDVVXPSWLRQWKDWWKHEDOOLV
RSHQWRWKHVDPHVRUWRIHQWUHDW\ZKLFKSUHYDLOVZLWKWKHPDVWHUZKLFKLPSOLHVQRWWKDWWKHZLVWIXOEUXWHDFFUHGLWVWKH
EDOOZLWKDVRXOEXWWKDWLQKLVPLQGWKHGLVWLQFWLRQEHWZHHQOLIHDQGLQDQLPDWHH[LVWHQFHKDVQHYHUEHHQWKRURXJKO\
HVWDEOLVKHG-XVWWKLVFRQIXVLRQEHWZHHQWKLQJVOLYLQJDQGWKLQJVQRWOLYLQJLVSUHVHQWWKURXJKRXWWKHZKROHSKLORVRSK\
RIIHWLFKLVPDQGWKHFRQIXVLRQEHWZHHQWKLQJVVHHQDQGWKLQJVGUHDPHGZKLFKVXJJHVWVWKHQRWLRQRIDQRWKHUVHOI
EHORQJVWRWKLVVDPHWZLOLJKWVWDJHRILQWHOOLJHQFHLQZKLFKSULPHYDOPDQKDVQRW\HWFOHDUO\GHPRQVWUDWHGKLV
LPPHDVXUDEOHVXSHULRULW\WRWKHEUXWHV>@
>@6HH1DWXUH9RO9,S$XJXVW7KHFLUFXPVWDQFHVQDUUDWHGDUHVXFKDVWRH[FOXGHWKHVXSSRVLWLRQ
WKDWWKHVLWWLQJXSLVLQWHQGHGWRDWWUDFWWKHPDVWHU¶VDWWHQWLRQ7KHGRJKDVIUHTXHQWO\EHHQVHHQWU\LQJWRVRIWHQWKH
KHDUWRIWKHEDOOZKLOHREVHUYHGXQDZDUHVE\KLVPDVWHU
>@³:HZRXOGKRZHYHUFRPPHQGWR0U)LVNH¶VDWWHQWLRQ0U0DUN7ZDLQ¶VGRJZKRµFRXOGQ¶WEHGHSHQGHGRQ
IRUDVSHFLDOSURYLGHQFH¶DVEHLQJQHDUHUWRWKHDFWXDOGRJRIHYHU\GD\OLIHWKDQLVWKH6N\HWHUULHUPHQWLRQHGE\D
FHUWDLQFRUUHVSRQGHQWRI1DWXUHWRZKRVHOHWWHU0U)LVNHUHIHUV7KHWHUULHULVKHOGWRKDYHKDGµDIHZIHWLFKLVWLF
QRWLRQV¶EHFDXVHKHZDVIRXQGVWDQGLQJXSRQKLVKLQGOHJVLQIURQWRIDPDQWHOSLHFHXSRQZKLFKOD\DQLQGLDUXEEHU
EDOOZLWKZKLFKKHZLVKHGWRSOD\EXWZKLFKKHFRXOGQRWUHDFKDQGZKLFKVD\VWKHOHWWHUZULWHUKHZDVHYLGHQWO\
EHVHHFKLQJWRFRPHGRZQDQGSOD\ZLWKKLP:HFRQVLGHULWPRUHUHDVRQDEOHWRVXSSRVHWKDWDGRJZKRKDGEHHQ
GULOOHGLQWRDEHOLHIWKDWVWDQGLQJXSRQKLVKLQGOHJVZDVYHU\SOHDVLQJWRKLVPDVWHUDQGZKRWKHUHIRUHKDG
DFFXVWRPHGKLPVHOIWRVWDQGRQKLVKLQGOHJVZKHQHYHUKHGHVLUHGDQ\WKLQJDQGZKRVHXVXDOZD\RIJHWWLQJZKDWKH
GHVLUHGZDVWRLQGXFHVRPHERG\WRJHWLWIRUKLPPD\KDYHVWRRGXSLQIURQWRIWKHPDQWHOSLHFHUDWKHUIURPIRUFHRI
KDELWDQGHDJHUQHVVRIGHVLUHWKDQEHFDXVHKHKDGDQ\IHWLFKLVWLFQRWLRQVRUH[SHFWHGWKHLQGLDUXEEHUEDOOWROLVWHQWR
KLVVXSSOLFDWLRQV:HDGPLWKRZHYHUWRDYRLGSROHPLFDOFRQWURYHUV\WKDWLQPDWWHURIUHOLJLRQWKHGRJLVFDSDEOHRI
DQ\WKLQJ´7KH1DWLRQ9RO;9S2FWREHU7REHVXUH,GRQRWNQRZIRUFHUWDLQZKDWZDVJRLQJRQLQ
WKHGRJ¶VPLQGDQGVROHWWLQJERWKH[SODQDWLRQVVWDQG,ZLOORQO\DGGDQRWKHUIDFWRIVLPLODULPSRUW³7KHWHQGHQF\LQ
VDYDJHVWRLPDJLQHWKDWQDWXUDOREMHFWVDQGDJHQFLHVDUHDQLPDWHGE\VSLULWXDORUOLYLQJHVVHQFHVLVSHUKDSVLOOXVWUDWHG
E\DOLWWOHIDFWZKLFK,RQFHQRWLFHGP\GRJDIXOOJURZQDQGYHU\VHQVLEOHDQLPDOZDVO\LQJRQWKHODZQGXULQJDKRW
DQGVWLOOGD\EXWDWDOLWWOHGLVWDQFHDVOLJKWEUHH]HRFFDVLRQDOO\PRYHGDQRSHQSDUDVROZKLFKZRXOGKDYHEHHQZKROO\
GLVUHJDUGHGE\WKHGRJKDGDQ\RQHVWRRGQHDULW$VLWZDVHYHU\WLPHWKDWWKHSDUDVROVOLJKWO\PRYHGWKHGRJ
JURZOHGILHUFHO\DQGEDUNHG+HPXVW,WKLQNKDYHUHDVRQHGWRKLPVHOILQDUDSLGDQGXQFRQVFLRXVPDQQHUWKDW
PRYHPHQWZLWKRXWDQ\DSSDUHQWFDXVHLQGLFDWHGWKHSUHVHQFHRIVRPHVWUDQJHOLYLQJDJHQWDQGQRVWUDQJHUKDGDULJKW
WREHRQKLVWHUULWRU\´'DUZLQ'HVFHQWRI0DQ9ROS:LWKRXWLQVLVWLQJXSRQDOOWKHGHWDLOVRIWKLVH[SODQDWLRQ
RQHPD\UHDGLO\JUDQW,WKLQNWKDWLQWKHGRJDVLQWKHVDYDJHWKHUHLVDQXQGLVWXUEHGDVVRFLDWLRQEHWZHHQPRWLRQDQG
DOLYLQJPRWRUDJHQF\DQGWKDWRXWRIDPXOWLWXGHRIMXVWVXFKDVVRFLDWLRQVFRPPRQWRERWKWKHVDYDJHZLWKKLV
JUHDWHUJHQHUDOL]LQJSRZHUIUDPHVDWUXO\IHWLFKLVWLFFRQFHSWLRQ
7KHFRQFHSWLRQRIDVRXORURWKHUVHOIFDSDEOHRIJRLQJDZD\IURPWKHERG\DQGUHWXUQLQJWRLWUHFHLYHVGHFLVLYH
FRQILUPDWLRQIURPWKHSKHQRPHQDRIIDLQWLQJWUDQFHFDWDOHSV\DQGHFVWDV\>@ZKLFKRFFXUOHVVUDUHO\DPRQJ
VDYDJHVRZLQJWRWKHLULUUHJXODUPRGHRIOLIHWKDQDPRQJFLYLOL]HGPHQ³)XUWKHUYHULILFDWLRQ´REVHUYHV0U6SHQFHU
³LVDIIRUGHGE\HYHU\HSLOHSWLFVXEMHFWLQWRZKRVHERG\GXULQJWKHDEVHQFHRIWKHRWKHUVHOIVRPHHQHP\KDVHQWHUHG
IRUKRZHOVHGRHVLWKDSSHQWKDWWKHRWKHUVHOIRQUHWXUQLQJGHQLHVDOONQRZOHGJHRIZKDWKLVERG\KDVEHHQGRLQJ"$QG
WKLVVXSSRVLWLRQWKDWWKHERG\KDVEHHQµSRVVHVVHG¶E\VRPHRWKHUEHLQJLVFRQILUPHGE\WKHSKHQRPHQDRI
VRPQDPEXOLVPDQGLQVDQLW\´6WLOOIXUWKHUDV0U6SHQFHUSRLQWVRXWZKHQZHUHFROOHFWWKDWVDYDJHVDUHYHU\JHQHUDOO\
XQZLOOLQJWRKDYHWKHLUSRUWUDLWVWDNHQOHVWDSRUWLRQRIWKHPVHOYHVVKRXOGJHWFDUULHGRIIDQGEHH[SRVHGWRIRXO
SOD\>@ZHPXVWUHDGLO\DGPLWWKDWWKHZHLUGUHIOHFWLRQRIWKHSHUVRQDQGLPLWDWLRQRIWKHJHVWXUHVLQULYHUVRUVWLOO
ZRRGODQGSRROVZLOOJRIDUWRLQWHQVLI\WKHEHOLHILQWKHRWKHUVHOI/HVVIUHTXHQWEXWXQLIRUPFRQILUPDWLRQLVWREH
IRXQGLQHFKRHVZKLFKLQ(XURSHZLWKLQWZRFHQWXULHVKDYHEHHQFRPPRQO\LQWHUSUHWHGDVWKHYRLFHVRIPRFNLQJ
ILHQGVRUZRRGQ\PSKVDQGZKLFKWKHVDYDJHPLJKWZHOOUHJDUGDVWKHXWWHUDQFHVRIKLVRWKHUVHOI
>@1RWHWKHIHWLFKLVPZUDSSHGXSLQWKHHW\PRORJLHVRIWKHVH*UHHNZRUGV&DWDOHSV\NDWDOK\LVDVHL]LQJRIWKH
ERG\E\VRPHVSLULWRUGHPRQZKRKROGVLWULJLG(FVWDV\HNVWDVLVDGLVSODFHPHQWRUUHPRYDORIWKHVRXOIURPWKH
ERG\LQWRZKLFKWKHGHPRQHQWHUVDQGFDXVHVVWUDQJHODXJKLQJFU\LQJRUFRQWRUWLRQV,WLVQRWPHWDSKRUEXWWKHOLWHUDO
EHOLHILOODJKRVWZRUOGZKLFKKDVJLYHQULVHWRVXFKZRUGVDVWKHVHDQGWRVXFKH[SUHVVLRQVDV³DPDQEHVLGHKLPVHOI
RUWUDQVSRUWHG´
>@6RPHWKLQJDNLQWRWKHVDYDJH¶VEHOLHILQWKHDQLPDWLRQRISLFWXUHVPD\EHVHHQLQ\RXQJFKLOGUHQ,KDYHRIWHQ
EHHQDVNHGE\P\WKUHH\HDUROGER\ZKHWKHUWKHGRJLQDFHUWDLQSLFWXUHZRXOGELWHKLPLIKHZHUHWRJRQHDULWDQG,
FDQUHPHPEHUWKDWLQP\RZQFKLOGKRRGZKHQUHDGLQJDERRNDERXWLQVHFWVZKLFKKDGWKHIRUPLGDEOHOLNHQHVVRID
VSLGHUVWDPSHGRQWKHFHQWUHRIWKHFRYHU,ZDVDOZD\VXQHDV\OHVWP\ILQJHUVKRXOGFRPHLQFRQWDFWZLWKWKHGUHDGHG
WKLQJDV,KHOGWKHERRN
:LWKWKHVDYDJH¶VXQZLOOLQJQHVVWRKDYHKLVSRUWUDLWWDNHQOHVWLWIDOOLQWRWKHKDQGVRIVRPHHQHP\ZKRPD\LQMXUHKLP
E\FRQMXULQJZLWKLWPD\EHFRPSDUHGWKHUHOXFWDQFHZKLFKKHRIWHQVKRZVWRZDUGWHOOLQJKLVQDPHRUPHQWLRQLQJWKH
QDPHRIKLVIULHQGRUNLQJRUWXWHODUJKRVWGHLW\,QIHWLFKLVWLFWKRXJKWWKHQDPHLVDQHQWLW\P\VWHULRXVO\DVVRFLDWHG
ZLWKLWVRZQHUDQGLWLVQRWZHOOWRUXQWKHULVNRILWVJHWWLQJLQWRKRVWLOHKDQGV$ORQJZLWKWKLVFDXWLRQJRHVWKH
VLPLODUO\RULJLQDWHGIHDUWKDWWKHSHUVRQZKRVHQDPHLVVSRNHQPD\UHVHQWVXFKPHGGOLQJZLWKKLVSHUVRQDOLW\)RUWKH
ODWWHUUHDVRQWKH'D\DNZLOOQRWDOOXGHE\QDPHWRWKHVPDOOSR[EXWZLOOFDOOLW³WKHFKLHI´RU³MXQJOHOHDYHV´WKH
/DSODQGHUVSHDNVRIWKHEHDUDVWKH³ROGPDQZLWKWKHIXUFRDW´LQ$QQDPWKHWLJHULVFDOOHG³JUDQGIDWKHU´RU³/RUG´
ZKLOHLQPRUHFLYLOL]HGFRPPXQLWLHVVXFKVD\LQJVDUHFXUUHQWDV³WDONRIWKH'HYLODQGKHZLOODSSHDU´ZLWKZKLFKZH
PD\DOVRFRPSDUHVXFKH[SUHVVLRQVDV³(XPHQLGHV´RU³JUDFLRXVRQHV´IRUWKH)XULHVDQGRWKHUOLNHHXSKHPLVPV
,QGHHGWKHPD[LPQLOPRUWXLVQLVLERQXPKDGPRVWOLNHO\DWRQHWLPHDIHWLFKLVWLFIODYRXU
,QYDULRXVLVODQGVRIWKH3DFLILFIRUERWKWKHUHDVRQVDERYHVSHFLILHGWKHQDPHRIWKHUHLJQLQJFKLHILVVRULJRURXVO\
³WDEX´WKDWFRPPRQZRUGVDQGHYHQV\OODEOHVUHVHPEOLQJWKDWQDPHLQVRXQGPXVWEHRPLWWHGIURPWKHODQJXDJH,Q
1HZ=HDODQGZKHUHDFKLHIVQDPHZDV0DULSLRU³NQLIH´LWEHFDPHQHFHVVDU\WRFDOONQLYHVQHNUDDQGLQ7DKLWLIHWX
³VWDU´KDGWREHFKDQJHGLQWRIHWLDDQGWXL³WRVWULNH´EHFDPHWLDLHWFEHFDXVHWKHNLQJ¶VQDPHZDV7X&XULRXV
IUHDNVDUHSOD\HGZLWKWKHODQJXDJHVRIWKHVHLVODQGVE\WKLVHYHUUHFXUULQJQHFHVVLW\$PRQJWKH.DILUVWKHZRPHQ
KDYHFRPHWRVSHDNDGLIIHUHQWGLDOHFWIURPWKHPHQEHFDXVHZRUGVUHVHPEOLQJWKHQDPHVRIWKHLUORUGVRUPDOH
UHODWLYHVDUHLQOLNHPDQQHU³WDEX´7KHVWXGHQWRIKXPDQFXOWXUHZLOOWUDFHDPRQJVXFKSULPHYDOQRWLRQVWKHRULJLQRI
WKH-HZ¶VXQZLOOLQJQHVVWRSURQRXQFHWKHQDPHRI-HKRYDKDQGKHQFHZHPD\SHUKDSVKDYHEHIRUHXVWKHXOWLPDWH
VRXUFHRIWKHKRUURUZLWKZKLFKWKH+HEUDL]LQJ3XULWDQUHJDUGVVXFKIRUPVRIOLJKWVZHDULQJ²³0RQ'LHX´HWF²DV
DUHVWLOOWROHUDWHGRQWKHFRQWLQHQWRI(XURSHEXWKDYHGLVDSSHDUHGIURPJRRGVRFLHW\LQ3XULWDQLF(QJODQGDQG
$PHULFD7KHUHDGHULQWHUHVWHGLQWKLVJURXSRILGHDVDQGFXVWRPVPD\FRQVXOW7\ORU(DUO\+LVWRU\RI0DQNLQGSS
0D[0XOOHU6FLHQFHRI/DQJXDJHWK HGLWLRQ9RO,,S0DFND\5HOLJLRXV'HYHORSPHQWRIWKH*UHHNV
DQG+HEUHZV9RO,S
&KDPLVVR¶VZHOONQRZQWDOHRI3HWHU6FKOHPLKOEHORQJVWRDZLGHO\GLIIXVHGIDPLO\RIOHJHQGVZKLFKVKRZWKDWD
PDQ¶VVKDGRZKDVEHHQJHQHUDOO\UHJDUGHGQRWRQO\DVDQHQWLW\EXWDVDVRUWRIVSLULWXDODWWHQGDQWRIWKHERG\ZKLFK
XQGHUFHUWDLQFLUFXPVWDQFHVLWPD\SHUPDQHQWO\IRUVDNH,WLVLQVWULFWDFFRUGDQFHZLWKWKLVLGHDWKDWQRWRQO\LQWKH
FODVVLFODQJXDJHVEXWLQYDULRXVEDUEDULFWRQJXHVWKHZRUGIRU³VKDGRZ´H[SUHVVHVDOVRWKHVRXORURWKHUVHOI
7DVPDQLDQV$OJRQTXLQV&HQWUDO$PHULFDQV$ELSRQHV%DVXWRVDQG=XOXVDUHFLWHGE\0U7\ORUDVWKXVLPSOLFLWO\
DVVHUWLQJWKHLGHQWLW\RIWKHVKDGRZZLWKWKHJKRVWRUSKDQWDVPVHHQLQGUHDPVWKH%DVXWRVJRLQJVRIDUDVWRWKLQN
³WKDWLIDPDQZDONVRQWKHULYHUEDQNDFURFRGLOHPD\VHL]HKLVVKDGRZLQWKHZDWHUDQGGUDZKLPLQ´$PRQJWKH
$OJRQTXLQVDVLFNSHUVRQLVVXSSRVHGWRKDYHKLVVKDGRZRURWKHUVHOIWHPSRUDULO\GHWDFKHGIURPKLVERG\DQGWKH
FRQYDOHVFHQWLVDWWLPHV³UHSURDFKHGIRUH[SRVLQJKLPVHOIEHIRUHKLVVKDGRZZDVVDIHO\VHWWOHGGRZQLQKLP´,IWKH
VLFNPDQKDVEHHQSOXQJHGLQWRVWXSRULWLVEHFDXVHKLVRWKHUVHOIKDVWUDYHOOHGDZD\DVIDUDVWKHEULQNRIWKHULYHURI
GHDWKEXWQRWEHLQJDOORZHGWRFURVVKDVFRPHEDFNDQGUHHQWHUHGKLP$QGDFWLQJXSRQDVLPLODUQRWLRQWKHDLOLQJ)LML
ZLOOVRPHWLPHVOLHGRZQDQGUDLVHDKXHDQGFU\IRUKLVVRXOWREHEURXJKWEDFN7KXVFRQWLQXHV0U7\ORU³LQYDULRXV
FRXQWULHVWKHEULQJLQJEDFNRIORVWVRXOVEHFRPHVDUHJXODUSDUWRIWKHVRUFHUHU¶VRUSULHVW¶VSURIHVVLRQ´>@2Q$U\DQ
VRLOZHILQGWKHQRWLRQRIDWHPSRUDU\GHSDUWXUHRIWKHVRXOVXUYLYLQJWRDODWHGDWHLQWKHWKHRU\WKDWWKHZLWFKPD\
DWWHQGWKHLQIHUQDO6DEEDWKZKLOHKHUHDUWKO\WDEHUQDFOHLVTXLHWO\VOHHSLQJDWKRPH7KHSULPHYDOFRQFHSWLRQUHDSSHDUV
FORWKHGLQELWWHUHVWVDUFDVPLQ'DQWH¶VUHIHUHQFHWRKLVOLYLQJFRQWHPSRUDULHVZKRVHVRXOVKHPHWZLWKLQWKHYDXOWVRI
KHOOZKLOHWKHLUERGLHVZHUHVWLOOZDONLQJDERXWRQWKHHDUWKLQKDELWHGE\GHYLOV
>@7\ORU3ULPLWLYH&XOWXUH,³7KH=XOXVKROGWKDWDGHDGERG\FDQFDVWQRVKDGRZEHFDXVHWKDWDSSXUWHQDQFH
GHSDUWHGIURPLWDWWKHFORVHRIOLIH´+DUGZLFN7UDGLWLRQV6XSHUVWLWLRQVDQG)RON/RUHS
7KHWKHRU\ZKLFKLGHQWLILHVWKHVRXOZLWKWKHVKDGRZDQGVXSSRVHVWKHVKDGRZWRGHSDUWZLWKWKHVLFNQHVVDQGGHDWKRI
WKHERG\ZRXOGVHHPOLDEOHWREHDWWHQGHGZLWKVRPHGLIILFXOWLHVLQWKHZD\RIYHULILFDWLRQHYHQWRWKHGLP
LQWHOOLJHQFHRIWKHVDYDJH%XWWKHSURSULHW\RILGHQWLI\LQJVRXODQGEUHDWKLVERUQHRXWE\DOOSULPHYDOH[SHULHQFH7KH
EUHDWKZKLFKUHDOO\TXLWVWKHERG\DWLWVGHFHDVHKDVIXUQLVKHGWKHFKLHIQDPHIRUWKHVRXOQRWRQO\WRWKH+HEUHZWKH
6DQVNULWDQGWKHFODVVLFWRQJXHVQRWRQO\WR*HUPDQDQG(QJOLVKZKHUHJHLVWDQGJKRVWDFFRUGLQJWR0D[0XOOHU
KDYHWKHPHDQLQJRI³EUHDWK´DQGDUHDNLQWRVXFKZRUGVDVJDVJXVWDQGJH\VHUEXWDOVRWRQXPHURXVEDUEDULF
ODQJXDJHV$PRQJWKHQDWLYHVRI1LFDUDJXDDQG&DOLIRUQLDLQ-DYDDQGLQ:HVW$XVWUDOLDWKHVRXOLVGHVFULEHGDVWKH
DLURUEUHH]HZKLFKSDVVHVLQDQGRXWWKURXJKWKHQRVWULOVDQGPRXWKDQGWKH*UHHQODQGHUVDFFRUGLQJWR&UDQ]UHFNRQ
WZRVHSDUDWHVRXOVWKHEUHDWKDQGWKHVKDGRZ³$PRQJWKH6HPLQROHVRI)ORULGDZKHQDZRPDQGLHGLQFKLOGELUWKWKH
LQIDQWZDVKHOGRYHUKHUIDFHWRUHFHLYHKHUSDUWLQJVSLULWDQGWKXVDFTXLUHVWUHQJWKDQGNQRZOHGJHIRULWVIXWXUHXVH
7KHLUVWDWHRIPLQGLVNHSWXSWRWKLVGD\DPRQJ7\UROHVHSHDVDQWVZKRFDQVWLOOIDQF\DJRRGPDQ¶VVRXOWRLVVXHIURP
KLVPRXWKDWGHDWKOLNHDOLWWOHZKLWHFORXG´>@,WLVNHSWXSWRRLQ/DQFDVKLUHZKHUHDZHOONQRZQZLWFKGLHGDIHZ
\HDUVVLQFH
³EXWEHIRUHVKHFRXOGµVKXIIOHRIIWKLVPRUWDOFRLO¶VKHPXVWQHHGV75$16)(5+(5)$0,/,$563,5,7WRVRPH
WUXVW\VXFFHVVRU$QLQWLPDWHDFTXDLQWDQFHIURPDQHLJKERXULQJWRZQVKLSZDVFRQVHTXHQWO\VHQWIRULQDOOKDVWHDQG
RQKHUDUULYDOZDVLPPHGLDWHO\FORVHWHGZLWKKHUG\LQJIULHQG:KDWSDVVHGEHWZHHQWKHPKDVQHYHUIXOO\WUDQVSLUHG
EXWLWLVFRQILGHQWO\DIILUPHGWKDWDWWKHFORVHRIWKHLQWHUYLHZWKLVDVVRFLDWH5(&(,9('7+(:,7&+¶6/$67
%5($7+,172+(50287+$1':,7+,7+(5)$0,/,$563,5,77KHGUHDGHGZRPDQWKXVFHDVHGWRH[LVW
EXWKHUSRZHUVIRUJRRGRUHYLOZHUHWUDQVIHUUHGWRKHUFRPSDQLRQDQGRQSDVVLQJDORQJWKHURDGIURP%XUQOH\WR
%ODFNEXUQZHFDQSRLQWRXWDIDUPKRXVHDWQRJUHDWGLVWDQFHZLWKZKRVHWKULIW\PDWURQQRQHLJKERXULQJIDUPHUZLOO\HW
GDUHWRTXDUUHO´>@
>@7\ORURSFLW,
>@+DUODQGDQG:LONLQVRQ/DQFDVKLUH)RON/RUHS
2IWKHWKHRU\RIHPERGLPHQWWKHUHZLOOEHRFFDVLRQWRVSHDNIXUWKHURQ$WSUHVHQWOHWXVQRWSDVVRYHUWKHIDFWWKDWWKH
RWKHUVHOILVQRWRQO\FRQFHLYHGDVVKDGRZRUEUHDWKZKLFKFDQDWWLPHVTXLWWKHERG\GXULQJOLIHEXWLVDOVRVXSSRVHG
WREHFRPHWHPSRUDULO\HPERGLHGLQWKHYLVLEOHIRUPRIVRPHELUGRUEHDVW,QGLVFXVVLQJHOVHZKHUHWKHP\WKRI%LVKRS
+DWWRZHVDZWKDWWKHVRXOLVVRPHWLPHVUHSUHVHQWHGLQWKHIRUPRIDUDWRUPRXVHDQGLQWUHDWLQJRIZHUHZROYHVZH
QRWLFHGWKHEHOLHIWKDWWKHVSLULWVRIGHDGDQFHVWRUVERUQHDORQJLQWKHQLJKWZLQGKDYHWDNHQRQWKHVHPEODQFHRI
KRZOLQJGRJVRUZROYHV³&RQVLVWHQWZLWKWKHVHTXDLQWLGHDVDUHFHUHPRQLHVLQYRJXHLQ&KLQDRIEULQJLQJKRPHLQD
FRFN OLYHRUDUWLILFLDO WKHVSLULWRIDPDQGHFHDVHGLQDGLVWDQWSODFHDQGRIHQWLFLQJLQWRDVLFNPDQ¶VFRDWWKH
GHSDUWLQJVSLULWZKLFKKDVDOUHDG\OHIWKLVERG\DQGVRFRQYH\LQJLWEDFN´>@,Q&DVWUHQ¶VJUHDWZRUNRQ)LQQLVK
P\WKRORJ\ZHILQGWKHVWRU\RIWKHJLDQWZKRFRXOGQRWEHNLOOHGEHFDXVHKHNHSWKLVVRXOKLGGHQLQDWZHOYHKHDGHG
VQDNHZKLFKKHFDUULHGLQDEDJDVKHURGHRQKRUVHEDFNRQO\ZKHQWKHVHFUHWZDVGLVFRYHUHGDQGWKHVQDNHFDUHIXOO\
NLOOHGGLGWKHJLDQW\LHOGXSKLVOLIH,QWKLV)LQQLVKOHJHQGZHKDYHRQHRIWKHWKRXVDQGSKDVHVRIWKHVWRU\RIWKH
³*LDQWZKRKDGQR+HDUWLQKLV%RG\´EXWZKRVHKHDUWZDVFRQFHDOHGIRUVDIHNHHSLQJLQDGXFN¶VHJJRULQD
SLJHRQFDUHIXOO\GLVSRVHGLQVRPHEHOIU\DWWKHZRUOG¶VHQGDPLOOLRQPLOHVDZD\RUHQFDVHGLQDZHOOQLJKLQILQLWH
VHULHVRI&KLQHVHER[HV>@6LQFHLQVSLWHRIDOOWKHVHSUHFDXWLRQVWKHSRRUJLDQW¶VKHDUWLQYDULDEO\FDPHWRJULHIZH
QHHGQRWZRQGHUDWWKH.DUHQVXSHUVWLWLRQWKDWWKHVRXOLVLQGDQJHUZKHQLWTXLWVWKHERG\RQLWVH[FXUVLRQVDV
H[HPSOLILHGLQFRXQWOHVV,QGR(XURSHDQVWRULHVRIWKHDFFLGHQWDONLOOLQJRIWKHZHLUGPRXVHRUSLJHRQZKLFKHPERGLHV
WKHZDQGHULQJVSLULW&RQYHUVHO\LWLVKHOGWKDWWKHGHWDFKPHQWRIWKHRWKHUVHOILVIUDXJKWZLWKGDQJHUWRWKHVHOIZKLFK
UHPDLQV,QWKHSKLORVRSK\RI³ZUDLWKV´DQG³IHWFKHV´WKHDSSHDUDQFHRIDGRXEOHOLNHWKDWZKLFKWURXEOHG0LVWUHVV
$IIHU\LQKHUZDNLQJGUHDPVRI0U)OLQWZLQFKKDVEHHQIURPWLPHRXWRIPLQGDVLJQDORIDODUP³,Q1HZ=HDODQGLW
LVRPLQRXVWRVHHWKHILJXUHRIDQDEVHQWSHUVRQIRULILWEHVKDGRZ\DQGWKHIDFHQRWYLVLEOHKLVGHDWKPD\HUHORQJEH
H[SHFWHGEXWLIWKHIDFHEHVHHQKHLVGHDGDOUHDG\$SDUW\RI0DRULV RQHRIZKRPWROGWKHVWRU\ ZHUHVHDWHGURXQGD
ILUHLQWKHRSHQDLUZKHQWKHUHDSSHDUHGVHHQRQO\E\WZRRIWKHPWKHILJXUHRIDUHODWLYHOHIWLOODWKRPHWKH\
H[FODLPHGWKHILJXUHYDQLVKHGDQGRQWKHUHWXUQRIWKHSDUW\LWDSSHDUHGWKDWWKHVLFNPDQKDGGLHGDERXWWKHWLPHRI
WKHYLVLRQ´>@7KHEHOLHILQZUDLWKVKDVVXUYLYHGLQWRPRGHUQWLPHVDQGQRZDQGWKHQDSSHDUVLQWKHUHFRUGVRIWKDW
UHPQDQWRISULPHYDOSKLORVRSK\NQRZQDV³VSLULWXDOLVP´DVIRUH[DPSOHLQWKHFDVHRIWKHODG\ZKR³WKRXJKWVKHVDZ
KHURZQIDWKHUORRNLQDWWKHFKXUFKZLQGRZDWWKHPRPHQWKHZDVG\LQJLQKLVRZQKRXVH´
>@7\ORURSFLW,,
>@,Q5XVVLDWKHVRXOVRIWKHGHDGDUHVXSSRVHGWREHHPERGLHGLQSLJHRQVRUFURZV³7KXVZKHQWKH'HDFRQ
7KHRGRUHDQGKLVWKUHHVFKLVPDWLFEUHWKUHQZHUHEXUQWLQWKHVRXOVRIWKHPDUW\UVDVWKHµ2OG%HOLHYHUV¶DIILUP
DSSHDUHGLQWKHDLUDVSLJHRQV,Q9ROK\QLDGHDGFKLOGUHQDUHVXSSRVHGWRFRPHEDFNLQWKHVSULQJWRWKHLUQDWLYHYLOODJH
XQGHUWKHVHPEODQFHRIVZDOORZVDQGRWKHUVPDOOELUGVDQGWRVHHNE\VRIWWZLWWHULQJRUVRQJWRFRQVROHWKHLU
VRUURZLQJSDUHQWV´5DOVWRQ6RQJVRIWKH5XVVLDQ3HRSOHS
>@7\ORURSFLW,
7KHEHOLHILQWKH³GHDWKIHWFK´OLNHWKHGRFWULQHZKLFKLGHQWLILHVVRXOZLWKVKDGRZLVLQVWUXFWLYHDVVKRZLQJWKDWLQ
EDUEDULFWKRXJKWWKHRWKHUVHOILVVXSSRVHGWRUHVHPEOHWKHPDWHULDOVHOIZLWKZKLFKLWKDVFXVWRPDULO\EHHQDVVRFLDWHG
,QYDULRXVVDYDJHVXSHUVWLWLRQVWKHPLQXWHUHVHPEODQFHRIVRXOWRERG\LVIRUFLEO\VWDWHG7KH$XVWUDOLDQIRULQVWDQFH
QRWFRQWHQWZLWKVOD\LQJKLVHQHP\FXWVRIIWKHULJKWWKXPERIWKHFRUSVHVRWKDWWKHGHSDUWHGVRXOPD\EH
LQFDSDFLWDWHGIURPWKURZLQJDVSHDU(YHQWKHKDOIFLYLOL]HG&KLQHVHSUHIHUFUXFLIL[LRQWRGHFDSLWDWLRQWKDWWKHLUVRXOV
PD\QRWZDQGHUKHDGOHVVDERXWWKHVSLULWZRUOG>@7KXVZHVHHKRZIDUUHPRYHGIURPWKH&KULVWLDQGRFWULQHRI
VRXOVLVWKHSULPHYDOWKHRU\RIWKHVRXORURWKHUVHOIWKDWILJXUHVLQGUHDPODQG6RJURVVO\PDWHULDOLVWLFLVWKHSULPLWLYH
FRQFHSWLRQWKDWWKHVDYDJHZKRFKHULVKHVLWZLOOERUHKROHVLQWKHFRIILQRIKLVGHDGIULHQGVRWKDWWKHVRXOPD\DJDLQ
KDYHDFKDQFHLILWOLNHVWRUHYLVLWWKHERG\7RWKLVGD\DPRQJWKHSHDVDQWVLQVRPHSDUWVRI1RUWKHUQ(XURSHZKHQ
2GLQWKHVSHFWUDOKXQWHUULGHVE\DWWHQGHGE\KLVIXULRXVKRVWWKHZLQGRZVLQHYHU\VLFNURRPDUHRSHQHGLQRUGHU
WKDWWKHVRXOLILWFKRRVHVWRGHSDUWPD\QRWEHKLQGHUHGIURPMRLQLQJLQWKHKHDGORQJFKDVH$QGVRDGGV0U7\ORU
DIWHUWKH,QGLDQVRI1RUWK$PHULFDKDGVSHQWDULRWRXVQLJKWLQVLQJHLQJDQXQIRUWXQDWHFDSWLYHWRGHDWKZLWKILUHEUDQGV
WKH\ZRXOGKRZOOLNHWKHILHQGVWKH\ZHUHDQGEHDWWKHDLUZLWKEUXVKZRRGWRGULYHDZD\WKHGLVWUHVVHGDQGUHYHQJHIXO
JKRVW³:LWKDNLQGOLHUIHHOLQJWKH&RQJRQHJURHVDEVWDLQHGIRUDZKROH\HDUDIWHUDGHDWKIURPVZHHSLQJWKHKRXVH
OHVWWKHGXVWVKRXOGLQMXUHWKHGHOLFDWHVXEVWDQFHRIWKHJKRVW´DQGHYHQQRZ³LWUHPDLQVD*HUPDQSHDVDQWVD\LQJWKDW
LWLVZURQJWRVODPDGRRUOHVWRQHVKRXOGSLQFKDVRXOLQLW´>@'DQWH¶VH[SHULHQFHZLWKWKHJKRVWVLQKHOODQG
SXUJDWRU\ZKRZHUHDVWRQLVKHGDWKLVZHLJKLQJGRZQWKHERDWLQZKLFKWKH\ZHUHFDUULHGLVEHOLHGE\WKHVZHHW
*HUPDQQRWLRQ³WKDWWKHGHDGPRWKHU¶VFRPLQJEDFNLQWKHQLJKWWRVXFNOHWKHEDE\VKHKDVOHIWRQHDUWKPD\EHNQRZQ
E\WKHKROORZSUHVVHGGRZQLQWKHEHGZKHUHVKHOD\´$OPRVWXQLYHUVDOO\JKRVWVKRZHYHULPSHUYLRXVWRWKUXVWRI
VZRUGRUVKRWRISLVWROFDQHDWDQGGULQNOLNH6TXLUH:HVWHUQV$QGODVWO\ZHKDYHWKHJURWHVTXHFRQFHSWLRQRIVRXOV
VXIILFLHQWO\PDWHULDOWREHNLOOHGRYHUDJDLQDVLQWKHFDVHRIWKHQHJURZLGRZVZKRZLVKLQJWRPDUU\DVHFRQGWLPH
ZLOOJRDQGGXFNWKHPVHOYHVLQWKHSRQGLQRUGHUWRGURZQWKHVRXOVRIWKHLUGHSDUWHGKXVEDQGVZKLFKDUHVXSSRVHGWR
FOLQJDERXWWKHLUQHFNVZKLOHDFFRUGLQJWRWKH)LMLWKHRU\WKHJKRVWRIHYHU\GHDGZDUULRUPXVWJRWKURXJKDWHUULEOH
ILJKWZLWK6DPXDQGKLVEUHWKUHQLQZKLFKLIKHVXFFHHGVKHZLOOHQWHU3DUDGLVHEXWLIKHIDLOVKHZLOOEHNLOOHGRYHU
DJDLQDQGILQDOO\HDWHQE\WKHGUHDGHG6DPXDQGKLVXQHDUWKO\FRPSDQ\
>@7\ORURSFLW,
>@7\ORURSFLW,,QWKHQH[WVWDJHRIVXUYLYDOWKLVEHOLHIZLOOWDNHWKHVKDSHWKDWLWLVZURQJWRVODPDGRRUQR
UHDVRQEHLQJDVVLJQHGDQGLQWKHVXFFHHGLQJVWDJHZKHQWKHFKLOGDVNVZK\LWLVQDXJKW\WRVODPDGRRUKHZLOOEH
WROGEHFDXVHLWLVDQHYLGHQFHRIEDGWHPSHU7KXVGRROGZRUOGIDQFLHVGLVDSSHDUEHIRUHWKHLQURDGVRIWKHSUDFWLFDO
VHQVH
)URPWKHFRQFHSWLRQRIVRXOVHPERGLHGLQEHDVWIRUPVDVDERYHLOOXVWUDWHGLWLVQRWDZLGHVWHSWRWKHFRQFHSWLRQRI
EHDVWVRXOVZKLFKOLNHKXPDQVRXOVVXUYLYHWKHGHDWKRIWKHWDQJLEOHERG\7KHZLGHVSUHDGVXSHUVWLWLRQVFRQFHUQLQJ
ZHUHZROYHVDQGVZDQPDLGHQVDQGWKHKDUGO\OHVVJHQHUDOEHOLHILQPHWHPSV\FKRVLVVKRZWKDWSULPLWLYHFXOWXUHKDV
QRWDUULYHGDWWKHGLVWLQFWLRQDWWDLQHGE\PRGHUQSKLORVRSK\EHWZHHQWKHLPPRUWDOPDQDQGWKHVRXOOHVVEUXWH6WLOO
PRUHGLUHFWHYLGHQFHLVIXUQLVKHGE\VXQGU\VDYDJHFXVWRPV7KH.DILUZKRKDVNLOOHGDQHOHSKDQWZLOOFU\WKDWKHGLG
Q¶WPHDQWRGRLWDQGOHVWWKHHOHSKDQW¶VVRXOVKRXOGVWLOOVHHNYHQJHDQFHKHZLOOFXWRIIDQGEXU\WKHWUXQNVRWKDWWKH
PLJKW\EHDVWPD\JRFULSSOHGWRWKHVSLULWODQG,QOLNHPDQQHUWKH6DPR\HGVDIWHUVKRRWLQJDEHDUZLOOJDWKHUDERXW
WKHERG\RIIHULQJH[FXVHVDQGOD\LQJWKHEODPHRQWKH5XVVLDQVDQGWKH$PHULFDQUHGVNLQZLOOHYHQSXWWKHSLSHRI
SHDFHLQWRWKHGHDGDQLPDO¶VPRXWKDQGEHVHHFKKLPWRIRUJLYHWKHGHHG,Q$VVDPLWLVEHOLHYHGWKDWWKHJKRVWVRI
VODLQDQLPDOVZLOOEHFRPHLQWKHQH[WZRUOGWKHSURSHUW\RIWKHKXQWHUZKRNLOOVWKHPDQGWKH.DPWFKDGDOHVH[SUHVVO\
GHFODUHWKDWDOODQLPDOVHYHQIOLHVDQGEXJVZLOOOLYHDIWHUGHDWKDEHOLHIZKLFKLQRXURZQGD\KDVEHHQLQGRUVHG
RQSKLORVRSKLFDOJURXQGVE\DQHPLQHQWOLYLQJQDWXUDOLVW>@7KH*UHHQODQGHUVWRRJLYHHYLGHQFHRIWKHVDPHEHOLHI
E\VXSSRVLQJWKDWZKHQDIWHUDQH[KDXVWLQJIHYHUWKHSDWLHQWFRPHVXSLQXQSUHFHGHQWHGKHDOWKDQGYLJRXULWLVEHFDXVH
KHKDVORVWKLVIRUPHUVRXODQGKDGLWUHSODFHGE\WKDWRID\RXQJFKLOGRUDUHLQGHHU,QDUHFHQWZRUNLQZKLFKWKH
FUXGHVWIDQFLHVRISULPHYDOVDYDJHU\DUHWKLQO\GLVJXLVHGLQDMDUJRQOHDUQHGIURPWKHVXSHUILFLDOUHDGLQJRIPRGHUQ
ERRNVRIVFLHQFH0)LJXLHUPDLQWDLQVWKDWKXPDQVRXOVDUHIRUWKHPRVWSDUWWKHVXUYLYLQJVRXOVRIGHFHDVHGDQLPDOV
LQJHQHUDOWKHVRXOVRISUHFRFLRXVPXVLFDOFKLOGUHQOLNH0R]DUWFRPHIURPQLJKWLQJDOHVZKLOHWKHVRXOVRIJUHDW
DUFKLWHFWVKDYHSDVVHGLQWRWKHPIURPEHDYHUVHWFHWF>@
>@$JDVVL](VVD\RQ&ODVVLILFDWLRQSS
>@)LJXLHU7KH7RPRUURZRI'HDWKS
7KHSUDFWLFHRIEHJJLQJSDUGRQRIWKHDQLPDORQHKDVMXVWVODLQLVLQVRPHSDUWVRIWKHZRUOGH[WHQGHGWRWKHFDVHRI
SODQWV:KHQWKH7DOHLQRIIHUVDSUD\HUWRWKHWUHHZKLFKKHLVDERXWWRFXWGRZQLWLVREYLRXVO\EHFDXVHKHUHJDUGVWKH
WUHHDVHQGRZHGZLWKDVRXORUJKRVWZKLFKLQWKHQH[WOLIHPD\QHHGWREHSURSLWLDWHG$QGWKHGRFWULQHRI
WUDQVPLJUDWLRQGLVWLQFWO\LQFOXGHVSODQWVDORQJZLWKDQLPDOVDPRQJWKHIXWXUHH[LVWHQFHVLQWRZKLFKWKHKXPDQVRXO
PD\SDVV
$VSODQWVOLNHDQLPDOVPDQLIHVWSKHQRPHQDRIOLIHWKRXJKWRDPXFKOHVVFRQVSLFXRXVGHJUHHLWLVQRW
LQFRPSUHKHQVLEOHWKDWWKHVDYDJHVKRXOGDWWULEXWHVRXOVWRWKHP%XWWKHSULPLWLYHSURFHVVRIDQWKURSRPRUSKLVDWLRQ
GRHVQRWHQGKHUH1RWRQO\WKHKRUVHDQGGRJWKHEDPERRDQGWKHRDNWUHHEXWHYHQOLIHOHVVREMHFWVVXFKDVWKH
KDWFKHWRUERZDQGDUURZVRUIRRGDQGGULQNRIWKHGHDGPDQSRVVHVVRWKHUVHOYHVZKLFKSDVVLQWRWKHZRUOGRI
JKRVWV)LMLVDQGRWKHUFRQWHPSRUDU\VDYDJHVZKHQTXHVWLRQHGH[SUHVVO\GHFODUHWKDWWKLVLVWKHLUEHOLHI³,IDQD[HRUD
FKLVHOLVZRUQRXWRUEURNHQXSDZD\IOLHVLWVVRXOIRUWKHVHUYLFHRIWKHJRGV´7KH$OJRQTXLQVWROG&KDUOHYRL[WKDW
VLQFHKDWFKHWVDQGNHWWOHVKDYHVKDGRZVQROHVVWKDQPHQDQGZRPHQLWIROORZVRIFRXUVHWKDWWKHVHVKDGRZV RU
VRXOV PXVWSDVVDORQJZLWKKXPDQVKDGRZV RUVRXOV LQWRWKHVSLULWODQG,QWKLVZHVHHKRZVLPSOHDQGFRQVLVWHQWLV
WKHORJLFZKLFKJXLGHVWKHVDYDJHDQGKRZLQHYLWDEOHLVWKHJHQHVLVRIWKHJUHDWPDVVRIEHOLHIVWRRXUPLQGVVR
DUELWUDU\DQGJURWHVTXHZKLFKSUHYDLOWKURXJKRXWWKHEDUEDULFZRUOG+RZHYHUDEVXUGWKHEHOLHIWKDWSRWVDQGNHWWOHV
KDYHVRXOVPD\VHHPWRXVLWLVQHYHUWKHOHVVWKHRQO\EHOLHIZKLFKFDQEHKHOGFRQVLVWHQWO\E\WKHVDYDJHWRZKRPSRWV
DQGNHWWOHVQROHVVWKDQKXPDQIULHQGVRUHQHPLHVPD\DSSHDULQKLVGUHDPVZKRVHHVWKHPIROORZHGE\VKDGRZVDV
WKH\DUHPRYHGDERXWZKRKHDUVWKHLUYRLFHVGXOORUULQJLQJZKHQWKH\DUHVWUXFNDQGZKRZDWFKHVWKHLUGRXEOHV
IDQWDVWLFDOO\GDQFLQJLQWKHZDWHUDVWKH\DUHFDUULHGDFURVVWKHVWUHDP>@7RPLQGVHYHQLQFLYLOL]HGFRXQWULHV
ZKLFKDUHXQXVHGWRWKHVHYHUHWUDLQLQJRIVFLHQFHQRVWURQJHUHYLGHQFHFDQEHDOOHJHGWKDQZKDWLVFDOOHG³WKH
HYLGHQFHRIWKHVHQVHV´IRULWLVRQO\ORQJIDPLOLDULW\ZLWKVFLHQFHZKLFKWHDFKHVXVWKDWWKHHYLGHQFHRIWKHVHQVHVLV
WUXVWZRUWK\RQO\LQVRIDUDVLWLVFRUUHFWO\LQWHUSUHWHGE\UHDVRQ)RUWKHWUXWKRIKLVEHOLHILQWKHJKRVWVRIPHQDQG
EHDVWVWUHHVDQGD[HVWKHVDYDJHKDVXQGHQLDEO\WKHHYLGHQFHRIKLVVHQVHVZKLFKKDYHVRRIWHQVHHQKHDUGDQG
KDQGOHGWKHVHRWKHUVHOYHV
>@+HUHDVXVXDOO\WKHGRFWULQHRIPHWHPSV\FKRVLVFRPHVLQWRFRPSOHWHWKHSURRI³0U'DUZLQVDZWZR0DOD\
ZRPHQLQ.HHOLQJ,VODQGZKRKDGDZRRGHQVSRRQGUHVVHGLQFORWKHVOLNHDGROOWKLVVSRRQKDGEHHQFDUULHGWRWKH
JUDYHRIDGHDGPDQDQGEHFRPLQJLQVSLUHGDWIXOOPRRQLQIDFWOXQDWLFLWGDQFHGDERXWFRQYXOVLYHO\OLNHDWDEOHRUD
KDWDWDPRGHUQVSLULWVHDQFH´7\ORURSFLW,,
7KHIXQHUDOFHUHPRQLHVRIXQFXOWXUHGUDFHVIUHVKO\LOOXVWUDWHWKLVFUXGHSKLORVRSK\DQGUHFHLYHIUHVKLOOXVWUDWLRQIURP
LW2QWKHSULPLWLYHEHOLHILQWKHJKRVWO\VXUYLYDORISHUVRQVDQGREMHFWVUHVWVWKHDOPRVWXQLYHUVDOFXVWRPRIVDFULILFLQJ
WKHZLYHVVHUYDQWVKRUVHVDQGGRJVRIWKHGHSDUWHGFKLHIRIWKHWULEHDVZHOODVRISUHVHQWLQJDWKLVVKULQHVDFUHG
RIIHULQJVRIIRRGRUQDPHQWVZHDSRQVDQGPRQH\$PRQJWKH.D\DQVWKHVODYHVZKRDUHNLOOHGDWWKHLUPDVWHU¶VWRPE
DUHHQMRLQHGWRWDNHJUHDWFDUHRIWKHLUPDVWHU¶VJKRVWWRZDVKDQGVKDPSRRLWDQGWRQXUVHLWZKHQVLFN2WKHUVDYDJHV
WKLQNWKDW³DOOZKRPWKH\NLOOLQWKLVZRUOGVKDOODWWHQGWKHPDVVODYHVDIWHUGHDWK´DQGIRUWKLVUHDVRQWKHWKULIW\
'D\DNVRI%RUQHRXQWLOODWHO\ZRXOGQRWDOORZWKHLU\RXQJPHQWRPDUU\XQWLOWKH\KDGDFTXLUHGVRPHSRVWPRUWHP
SURSHUW\E\SURFXULQJDWOHDVWRQHKXPDQKHDG,WLVKDUGO\QHFHVVDU\WRGRPRUHWKDQDOOXGHWRWKH)LMLFXVWRPRI
VWUDQJOLQJDOOWKHZLYHVRIWKHGHFHDVHGDWKLVIXQHUDORUWRWKHHTXDOO\ZHOONQRZQ+LQGXULWHRIVXWWHH7KRXJKDV
:LOVRQKDVVKRZQWKHODWWHUULWHLVQRWVXSSRUWHGE\DQ\JHQXLQH9HGLFDXWKRULW\EXWRQO\E\DVKDPHOHVV%UDKPDQLF
FRUUXSWLRQRIWKHVDFUHGWH[W0U7\ORULVQHYHUWKHOHVVTXLWHULJKWLQDUJXLQJWKDWXQOHVVWKHKRUULEOHFXVWRPKDG
UHFHLYHGWKHVDQFWLRQRIDSXEOLFRSLQLRQEHTXHDWKHGIURPSUH9HGLFWLPHVWKH%UDKPDQVZRXOGKDYHKDGQRPRWLYH
IRUIUDXGXOHQWO\UHYLYLQJLWDQGWKLVRSLQLRQLVYLUWXDOO\HVWDEOLVKHGE\WKHIDFWRIWKHSUHYDOHQFHRIZLGRZVDFULILFH
DPRQJ*DXOV6FDQGLQDYLDQV6ODYHVDQGRWKHU(XURSHDQ$U\DQV>@7KRXJKXQGHU(QJOLVKUXOHWKHULWHKDVEHHQ
IRUFLEO\VXSSUHVVHG\HWWKHDUFKDLFVHQWLPHQWVZKLFKVRORQJPDLQWDLQHGLWDUHQRW\HWH[WLQFW:LWKLQWKHSUHVHQW\HDU
WKHUHKDVDSSHDUHGLQWKHQHZVSDSHUVDQRWLPSUREDEOHVWRU\RIDEHDXWLIXODQGDFFRPSOLVKHG+LQGXODG\ZKRKDYLQJ
EHFRPHWKHZLIHRIDZHDOWK\(QJOLVKPDQDQGDIWHUOLYLQJVHYHUDO\HDUVLQ(QJODQGDPLGWKHLQIOXHQFHVRIPRGHUQ
VRFLHW\QHYHUWKHOHVVZHQWRIIDQGSULYDWHO\EXUQHGKHUVHOIWRGHDWKVRRQDIWHUKHUKXVEDQG¶VGHFHDVH
>@7\ORURSFLW,
7KHUHDGHUZKRWKLQNVLWIDUIHWFKHGWRLQWHUSUHWIXQHUDORIIHULQJVRIIRRGZHDSRQVRUQDPHQWVRUPRQH\RQWKHWKHRU\
RIREMHFWVRXOVZLOOSUREDEO\VXJJHVWWKDWVXFKRIIHULQJVPD\EHPHUHPHPRULDOVRIDIIHFWLRQRUHVWHHPIRUWKHGHDG
PDQ6XFKLQGHHGWKH\KDYHFRPHWREHLQPDQ\FRXQWULHVDIWHUVXUYLYLQJWKHSKDVHRIFXOWXUHLQZKLFKWKH\
RULJLQDWHGEXWWKHUHLVDPSOHHYLGHQFHWRVKRZWKDWDWWKHRXWVHWWKH\ZHUHSUHVHQWHGLQWKHEHOLHIWKDWWKHLUJKRVWV
ZRXOGEHHDWHQRURWKHUZLVHHPSOR\HGE\WKHJKRVWRIWKHGHDGPDQ7KHVWRXWFOXEZKLFKLVEXULHGZLWKWKHGHDG)LML
VHQGVLWVVRXODORQJZLWKKLPWKDWKHPD\EHDEOHWRGHIHQGKLPVHOIDJDLQVWWKHKRVWLOHJKRVWVZKLFKZLOOOLHLQDPEXVK
IRUKLPRQWKHURDGWR0EXOXVHHNLQJWRNLOODQGHDWKLP6RPHWLPHVWKHFOXELVDIWHUZDUGVUHPRYHGIURPWKHJUDYHDV
RIQRIXUWKHUXVHVLQFHLWVJKRVWLVDOOWKDWWKHGHDGPDQQHHGV,QOLNHPDQQHU³DVWKH*UHHNVJDYHWKHGHDGPDQWKH
REROXVIRU&KDURQ¶VWROODQGWKHROG3UXVVLDQVIXUQLVKHGKLPZLWKVSHQGLQJPRQH\WREX\UHIUHVKPHQWRQKLVZHDU\
MRXUQH\VRWRWKLVGD\*HUPDQSHDVDQWVEXU\DFRUSVHZLWKPRQH\LQKLVPRXWKRUKDQG´DQGWKLVLVDOVRVDLGWREHRQH
RIWKHUHJXODUFHUHPRQLHVRIDQ,ULVKZDNH2IVLPLODUSXUSRUWZHUHWKHIXQHUDOIHDVWVDQGREODWLRQVRIIRRGLQ*UHHFH
DQG,WDO\WKH³ULFHFDNHVPDGHZLWKJKHH´GHVWLQHGIRUWKH+LQGXVRMRXUQLQJLQ<DPD¶VNLQJGRPDQGWKHPHDWDQG
JUXHORIIHUHGE\WKH&KLQDPDQWRWKHPDQHVRIKLVDQFHVWRUV³0DQ\WUDYHOOHUVKDYHGHVFULEHGWKHLPDJLQDWLRQZLWK
ZKLFKWKH&KLQHVHPDNHVXFKRIIHULQJV,WLVWKDWWKHVSLULWVRIWKHGHDGFRQVXPHWKHLPSDOSDEOHHVVHQFHRIWKHIRRG
OHDYLQJEHKLQGLWVFRDUVHPDWHULDOVXEVWDQFHZKHUHIRUHWKHGXWLIXOVDFULILFHUVKDYLQJVHWRXWVXPSWXRXVIHDVWVIRU
DQFHVWUDOVRXOVDOORZWKHPDSURSHUWLPHWRVDWLVI\WKHLUDSSHWLWHDQGWKHQIDOOWRWKHPVHOYHV´>@6RLQWKH+RPHULF
VDFULILFHWRWKHJRGVDIWHUWKHGHLW\KDVVPHOOHGWKHVZHHWVDYRXUDQGFRQVXPHGWKHFXUOLQJVWHDPWKDWULVHVJKRVWOLNH
IURPWKHURDVWLQJYLDQGVWKHDVVHPEOHGZDUULRUVGHYRXUWKHUHPDLQV´>@
>@7\ORURSFLW,,,
>@$FFRUGLQJWRWKH.DUHQVEOLQGQHVVRFFXUVZKHQWKH628/2)7+((<(LVHDWHQE\GHPRQV,G,,
7KXVIDUWKHFRXUVHRIIHWLFKLVWLFWKRXJKWZKLFKZHKDYHWUDFHGRXWZLWK0U7\ORU¶VDLGLVVXFKDVLVQRWDOZD\V
REYLRXVWRWKHPRGHUQLQTXLUHUZLWKRXWFRQVLGHUDEOHFRQFUHWHLOOXVWUDWLRQ7KHUHPDLQGHURIWKHSURFHVVUHVXOWLQJLQ
WKDWV\VWHPDWLFDQGFRPSOHWHDQWKURSRPRUSKLVDWLRQRIQDWXUHZKLFKKDVJLYHQULVHWRP\WKRORJ\PD\EHPRUH
VXFFLQFWO\GHVFULEHG*DWKHULQJWRJHWKHUWKHFRQFOXVLRQVDOUHDG\REWDLQHGZHILQGWKDWGDLO\RUIUHTXHQWH[SHULHQFHRI
WKHSKHQRPHQDRIVKDGRZVDQGGUHDPVKDVFRPELQHGZLWKOHVVIUHTXHQWH[SHULHQFHRIWKHSKHQRPHQDRIWUDQFH
HFVWDV\DQGLQVDQLW\WRJHQHUDWHLQWKHPLQGRIXQFXOWXUHGPDQWKHQRWLRQRIDWZRIROGH[LVWHQFHDSSHUWDLQLQJDOLNHWR
DOODQLPDWHRULQDQLPDWHREMHFWVDVDOODOLNHSRVVHVVPDWHULDOERGLHVVRDOODOLNHSRVVHVVJKRVWVRUVRXOV1RZZKHQ
WKHWKHRU\RIREMHFWVRXOVLVH[SDQGHGLQWRDJHQHUDOGRFWULQHRIVSLULWVWKHSKLORVRSKLFVFKHPHRIDQLPLVPLV
FRPSOHWHG2QFHKDELWXDWHGWRWKHFRQFHSWLRQRIVRXOVRINQLYHVDQGWREDFFRSLSHVSDVVLQJWRWKHODQGRIJKRVWVWKH
VDYDJHFDQQRWDYRLGFDUU\LQJWKHLQWHUSUHWDWLRQVWLOOIXUWKHUVRWKDWZLQGDQGZDWHUILUHDQGVWRUPDUHDFFUHGLWHGZLWK
LQGZHOOLQJVSLULWVDNLQE\QDWXUHWRWKHVRXOZKLFKLQKDELWVWKHKXPDQIUDPH7KDWWKHPLJKW\VSLULWRUGHPRQE\ZKRVH
LPSHOOLQJZLOOWKHWUHHVDUHURRWHGXSDQGWLOHVWRUPFORXGVGULYHQDFURVVWKHVN\VKRXOGUHVHPEOHDIUHHGKXPDQVRXOLV
DQDWXUDOLQIHUHQFHVLQFHXQFXOWXUHGPDQKDVQRWDWWDLQHGWRWKHFRQFHSWLRQRISK\VLFDOIRUFHDFWLQJLQDFFRUGDQFHZLWK
XQLIRUPPHWKRGVDQGKHQFHDOOHYHQWVDUHWRKLVPLQGWKHPDQLIHVWDWLRQVRIFDSULFLRXVYROLWLRQ,IWKHILUHEXUQVGRZQ
KLVKXWLWLVEHFDXVHWKHILUHLVDSHUVRQZLWKDVRXODQGLVDQJU\ZLWKKLPDQGQHHGVWREHFRD[HGLQWRDNLQGOLHUPRRG
E\PHDQVRISUD\HURUVDFULILFH7KXVWKHVDYDJHKDVDSULRULQRDOWHUQDWLYHEXWWRUHJDUGILUHVRXODVVRPHWKLQJDNLQWR
KXPDQVRXODQGLQSRLQWRIIDFWZHILQGWKDWVDYDJHSKLORVRSK\PDNHVQRGLVWLQFWLRQEHWZHHQWKHKXPDQJKRVWDQGWKH
HOHPHQWDOGHPRQRUGHLW\7KLVLVVXIILFLHQWO\SURYHGE\WKHXQLYHUVDOSUHYDOHQFHRIWKHZRUVKLSRIDQFHVWRUV7KH
HVVHQWLDOSULQFLSOHRIPDQHVZRUVKLSLVWKDWWKHWULEDOFKLHIRUSDWULDUFKZKRKDVJRYHUQHGWKHFRPPXQLW\GXULQJOLIH
FRQWLQXHVDOVRWRJRYHUQLWDIWHUGHDWKDVVLVWLQJLWLQLWVZDUIDUHZLWKKRVWLOHWULEHVUHZDUGLQJEUDYHZDUULRUVDQG
SXQLVKLQJWUDLWRUVDQGFRZDUGV7KXVIURPWKHFRQFHSWLRQRIWKHOLYLQJNLQJZHSDVVWRWKHQRWLRQRIZKDW0U6SHQFHU
FDOOV³WKHJRGNLQJ´DQGWKHQFHWRWKHUXGLPHQWDU\QRWLRQRIGHLW\$PRQJVXFKKLJKHUVDYDJHVDVWKH=XOXVWKH
GRFWULQHRIGLYLQHDQFHVWRUVKDVEHHQGHYHORSHGWRWKHH[WHQWRIUHFRJQL]LQJDILUVWDQFHVWRUWKH*UHDW)DWKHU
8QNXOXQNXOXZKRPDGHWKHZRUOG%XWLQWKHVWUDWXPRIVDYDJHWKRXJKWLQZKLFKEDUEDULFRU$U\DQIRONORUHLVIRUWKH
PRVWSDUWEDVHGZHILQGQRVXFKH[DOWHGVSHFXODWLRQ7KHDQFHVWRUVRIWKHUXGH9HGGDVDQGRIWKH*XLQHDQHJURHVWKH
+LQGXSLWULV SDWUHV³IDWKHUV´ DQGWKH5RPDQPDQHVKDYHEHFRPHHOHPHQWDOGHLWLHVZKLFKVHQGUDLQRUVXQVKLQH
KHDOWKRUVLFNQHVVSOHQW\RUIDPLQHDULGWRZKLFKWKHLUOLYLQJRIIVSULQJDSSHDOIRUJXLGDQFHDPLGWKHYLFLVVLWXGHVRI
OLIH>@7KHWKHRU\RIHPERGLPHQWDOUHDG\DOOXGHGWRVKRZVKRZWKRURXJKO\WKHGHPRQVZKLFKFDXVHGLVHDVHDUH
LGHQWLILHGZLWKKXPDQDQGREMHFWVRXOV,Q$XVWUDODVLDLWLVDGHDGPDQ¶VJKRVWZKLFKFUHHSVXSLQWRWKHOLYHURIWKH
LPSLRXVZUHWFKZKRKDVYHQWXUHGWRSURQRXQFHKLVQDPHZKLOHFRQYHUVHO\LQWKHZHOONQRZQ(XURSHDQWKHRU\RI
GHPRQLDFDOSRVVHVVLRQLWLVDIDLU\IURPHOIODQGRUDQLPSIURPKHOOZKLFKKDVHQWHUHGWKHERG\RIWKHVXIIHUHU,QWKH
FORVHNLQVKLSPRUHRYHUEHWZHHQGLVHDVHSRVVHVVLRQDQGRUDFOHSRVVHVVLRQZKHUHWKHERG\RIWLOH3\WKLDRUWKH
PHGLFLQHPDQLVSODFHGXQGHUWKHGLUHFWFRQWURORIVRPHJUHDWGHLW\>@ZHPD\VHHKRZE\LQVHQVLEOHWUDQVLWLRQVWKH
FRQFHSWLRQRIWKHKXPDQJKRVWSDVVHVLQWRWKHFRQFHSWLRQRIWKHVSLULWXDOQXPHQRUGLYLQLW\
>@7KHIROORZLQJFLWDWLRQLVLQWHUHVWLQJDVDQLOOXVWUDWLRQRIWKHGLUHFWQHVVRIGHVFHQWIURPKHDWKHQPDQHVZRUVKLSWR
&KULVWLDQVDLQWZRUVKLS³,WLVZHOONQRZQWKDW5RPXOXVPLQGIXORIKLVRZQDGYHQWXURXVLQIDQF\EHFDPHDIWHUGHDWKD
5RPDQGHLW\SURSLWLRXVWRWKHKHDOWKDQGVDIHW\RI\RXQJFKLOGUHQVRWKDWQXUVHVDQGPRWKHUVZRXOGFDUU\VLFNO\
LQIDQWVWRSUHVHQWWKHPLQKLVOLWWOHURXQGWHPSOHDWWKHIRRWRIWKH3DODWLQH,QDIWHUDJHVWKHWHPSOHZDVUHSODFHGE\WKH
FKXUFKRI6W7KHRGRUXVDQGWKHUH'U&RQ\HUV0LGGOHWRQZKRGUHZSXEOLFDWWHQWLRQWRLWVFXULRXVKLVWRU\XVHGWR
ORRNLQDQGVHHWHQRUDGR]HQZRPHQHDFKZLWKDVLFNFKLOGLQKHUODSVLWWLQJLQVLOHQWUHYHUHQFHEHIRUHWKHDOWDURIWKH
VDLQW7KHFHUHPRQ\RIEOHVVLQJFKLOGUHQHVSHFLDOO\DIWHUYDFFLQDWLRQPD\VWLOOEHVHHQWKHUHRQ7KXUVGD\PRUQLQJV´
2SFLW,,
>@:DQWRIVSDFHSUHYHQWVPHIURPUHPDUNLQJDWOHQJWKXSRQ0U7\ORU¶VDGPLUDEOHWUHDWPHQWRIWKHSKHQRPHQDRI
RUDFXODULQVSLUDWLRQ$WWHQWLRQVKRXOGEHFDOOHGKRZHYHUWRWKHEULOOLDQWH[SODQDWLRQRIWKHLPSRUWDQFHDFFRUGHGE\DOO
UHOLJLRQVWRWKHULWHRIIDVWLQJ3URORQJHGDEVWLQHQFHIURPIRRGWHQGVWREULQJRQDPHQWDOVWDWHZKLFKLVIDYRXUDEOHWR
YLVLRQV7KHVDYDJHSULHVWRUPHGLFLQHPDQTXDOLILHVKLPVHOIIRUWKHSHUIRUPDQFHRIKLVGXWLHVE\IDVWLQJDQGZKHUH
WKLVLVQRWVXIILFLHQWRIWHQXVHVLQWR[LFDWLQJGUXJVZKHQFHWKHVDFUHGQHVVRIWKHKDVKHHVKDVDOVRRIWKH9HGLFVRPD
MXLFH7KHSUDFWLFHRIIDVWLQJDPRQJFLYLOL]HGSHRSOHVLVDQLQVWDQFHRIVXUYLYDO
7RSXUVXHWKLVOLQHRILQTXLU\WKURXJKWKHFRXQWOHVVQ\PSKVDQGGU\DGVDQGQL[LHVRIWKHKLJKHUQDWXUHZRUVKLSXSWR
WKH2O\PSLDQGLYLQLWLHVRIFODVVLFSRO\WKHLVPZRXOGEHWRHQWHUXSRQWKHKLVWRU\RIUHOLJLRXVEHOLHIDQGLQVRGRLQJWR
ORVHVLJKWRIRXUSUHVHQWSXUSRVHZKLFKKDVPHUHO\EHHQWRVKRZE\ZKDWPHQWDOSURFHVVWKHP\WKPDNHUFDQVSHDNRI
QDWXUDOREMHFWVLQODQJXDJHZKLFKLPSOLHVWKDWWKH\DUHDQLPDWHGSHUVRQV%ULHIDVRXUDFFRXQWRIWKLVSURFHVVKDVEHHQ
,EHOLHYHWKDWHQRXJKKDVEHHQVDLGQRWRQO\WRUHYHDOWKHLQDGHTXDF\RISXUHO\SKLORORJLFDOVROXWLRQV OLNHWKRVH
FRQWDLQHGLQ0D[0XOOHU¶VIDPRXV(VVD\ WRH[SODLQWKHJURZWKRIP\WKVEXWDOVRWRH[KLELWWKHYDVWLPSRUWDQFHIRU
WKLVSXUSRVHRIWKHNLQGRISV\FKRORJLFDOLQTXLU\LQWRWKHPHQWDOKDELWVRIVDYDJHVZKLFK0U7\ORUKDVVRDEO\
FRQGXFWHG,QGHHGKRZHYHUODFNLQJZHPD\VWLOOEHLQSRLQWVRIGHWDLO,WKLQNZHKDYHDOUHDG\UHDFKHGDYHU\
VDWLVIDFWRU\H[SODQDWLRQRIWKHJHQHVLVRIP\WKRORJ\6LQFHWKHHVVHQWLDOFKDUDFWHULVWLFRIDP\WKLVWKDWLWLVDQDWWHPSW
WRH[SODLQVRPHQDWXUDOSKHQRPHQRQE\HQGRZLQJZLWKKXPDQIHHOLQJVDQGFDSDFLWLHVWKHVHQVHOHVVIDFWRUVLQWKH
SKHQRPHQRQDQGVLQFHLWKDVKHUHEHHQVKRZQKRZXQFXOWXUHGPDQE\WKHEHVWXVHKHFDQPDNHRIKLVUXGHFRPPRQ
VHQVHPXVWLQHYLWDEO\FRPHDQGKDVLQYDULDEO\FRPHWRUHJDUGDOOREMHFWVDVHQGRZHGZLWKVRXOVDQGDOOQDWXUHDV
SHRSOHGZLWKVXSUDKXPDQHQWLWLHVVKDSHGDIWHUWKHJHQHUDOSDWWHUQRIWKHKXPDQVRXO,DPLQFOLQHGWRVXVSHFWWKDWZH
KDYHJRWYHU\QHDUWRWKHURRWRIWKHZKROHPDWWHU:HFDQFHUWDLQO\ILQGQRGLIILFXOW\LQVHHLQJZK\DZDWHUVSRXW
VKRXOGEHGHVFULEHGLQWKH³$UDELDQ1LJKWV´DVDOLYLQJGHPRQ³7KHVHDEHFDPHWURXEOHGEHIRUHWKHPDQGWKHUHDURVH
IURPLWDEODFNSLOODUDVFHQGLQJWRZDUGVWKHVN\DQGDSSURDFKLQJWKHPHDGRZDQGEHKROGLWZDVD-LQQLRIJLJDQWLF
VWDWXUH´:HFDQVHHZK\WKH0RVOHPFDPHOGULYHUVKRXOGILQGLWPRVWQDWXUDOWRUHJDUGWKHZKLUOLQJVLPRRPDVD
PDOLJQDQW-LQQLZHPD\XQGHUVWDQGKRZLWLVWKDWWKH3HUVLDQVHHVLQERGLO\VKDSHWKHVFDUOHWIHYHUDV³DEOXVKLQJPDLG
ZLWKORFNVRIIODPHDQGFKHHNVDOOURV\UHG´DQGZHQHHGQRWFRQVLGHULWVWUDQJHWKDWWKHSULPHYDO$U\DQVKRXOGKDYH
UHJDUGHGWKHVXQDVDYR\DJHUDFOLPEHURUDQDUFKHUDQGWKHFORXGVDVFRZVGULYHQE\WKHZLQGJRG+HUPHVWRWKHLU
PLONLQJ7KHLGHQWLILFDWLRQRI:LOOLDP7HOOZLWKWKHVXQEHFRPHVWKRURXJKO\LQWHOOLJLEOHQRUFDQZHEHORQJHU
VXUSULVHGDWWKHFRQFHSWLRQRIWKHKRZOLQJQLJKWZLQGDVDUDYHQRXVZROI:KHQSRWVDQGNHWWOHVDUHWKRXJKWWRKDYH
VRXOVWKDWOLYHKHUHDIWHUWKHUHLVQRGLIILFXOW\LQXQGHUVWDQGLQJKRZWKHEOXHVN\FDQKDYHEHHQUHJDUGHGDVWKHVLUHRI
JRGVDQGPHQ$QGWKXVDVWKHHOYHVDQGERJDUWVRISRSXODUORUHDUHLQPDQ\FDVHVGHVFHQGHGIURPDQFLHQWGLYLQLWLHV
RI2O\PSRVDQG9DOKDOODVRWKHVHLQWXUQPXVWDFNQRZOHGJHWKHLUDQFHVWRUVLQWKHVKDGRZ\GHQL]HQVRIWKHSULPHYDO
JKRVWZRUOG
$XJXVW

127(
7+(IROORZLQJDUHVRPHRIWKHPRGHUQZRUNVPRVWOLNHO\WREHRIXVHWRWKHUHDGHUZKRLVLQWHUHVWHGLQWKHOHJHQGRI
:LOOLDP7HOO
+,6(/<--'LVVHUWDWLRKLVWRULHDLQDXJXUDOLVGH2XOLHOPR7HOOLRHWF*URQLQJDH
,'(/(5-/'LH6DJHYRQGHP6FKXVVGHV7HOO%HUOLQ
+$866(5/'LH6DJHYRQ7HOODXIV1HXHNULWLVFKXQWHUVXFKW
+HLGHOEHUJ
+,6(/<--5HFKHUFKHVFULWLTXHVVXUO¶KLVWRLUHGH*XLOODXPH7HOO/DXVDQQH
/,(%(1$8+'LH7HOO6DJH]XGHP-DKUHKLVWRULVRKQDFKQHXHVWHQ4XHOOHQ$DUDX
9,6&+(5:'LH6DJHYRQGHU%HIUHLQQJGHU:DOGVWDWWHHWF1HEVWHLQHU%HLODJHGDVDOWHVWH7HOOHQVHKDXVSLHO
/HLS]LJ
%25',(5+//H*UXWOLHW*XLOODXPH7HOORXGHIHQVHGHODWUDGLWLRQYXOJDLUHVXUOHVRULJLQHVGHODFRQIHGHUDWLRQ
VXLVVH*HQHYHHW%DOH
7KHVDPH/DTXHUHOOHVXUOHVWUDGLWLRQVFRQFHUQDQWO¶RULJLQHGHODFRQIHGHUDWLRQVXLVVH*HQHYHHW%DOH
5,//,(7$/HVRULJLQHVGHODFRQIHGHUDWLRQVXLVVHKLVWRLUHHWOHJHQGHH6HGUHYXHHWFRUULJHH*HQHYHHW%DOH

7KHVDPH/HWWUHD0+HQUL%RUGLHUDSURSRVGHVDGHIHQVHGHODWUDGLWLRQYXOJDLUHVXUOHVRULJLQHVGHODFRQIHGHUDWLRQ
VXLVVH*HQHYHHW%DOH
+81*(5%8+/(5+(WXGHFULWLTXHVXUOHVWUDGLWLRQVUHODWLYHVDX[RULJLQHVGHODFRQIHGHUDWLRQVXLVVH*HQHYHHW
%DOH
0(<(5.$5/'LH7HOOVDJH>,Q%DUWVFK*HUPDQLVWLVFKH6WXGLHQ,:LHQ
6HHDOVRWKHDUWLFOHVE\06FKHUHULQ/H7HPSV)HEE\05HXVVLQWKH5HYXHFULWLTXHG¶KLVWRLUHE\
0GH:LVVLQWKH-RXUQDOGH*HQHYH-XO\DOVR5HYXHFULWLTXH-XO\-RXUQDOGH*HQHYH2FW

*D]HWWHGH/DXVDQQHIHXLOOHWRQOLWWHUDLUH1RY³/HVRULJLQHVGHODFRQIHGHUDWLRQVXLVVH´SDU06HFUHWDQ
(GLQEXUJK5HYLHZ-DQ³7KH/HJHQGRI7HOODQG5XWOL´

You might also like