You are on page 1of 277

7+(6(&21'

)281'$7,2175,/2*<
)RXQGDWLRQV)HDU

*5(*25<%(1)25'
B
7R*UHJ%HDUDQG'DYLG%ULQ
IHOORZYR\DJHUVRQVWUDQJHVHDV
B
5(1'(=9286

5'DQHHO2OLYDZGLGQRWORRNOLNH(WR'HPHU]HO7KDWUROHKHKDG
DOUHDG\FDVWDVLGH
7KLV'RUV9DQDELOLH[SHFWHGWKRXJKLWZDVXQVHWWOLQJWRKHU6KHNQHZ
WKDWWKURXJKPLOOHQQLDKHKDGGLVFDUGHGWKHVNLQDQGVKDSHRIFRXQWOHVV
JXLVHV
'RUVVWXGLHGKLPLQWKHFUDPSHGGLQJ\URRPWZR6HFWRUVDZD\IURP
6WUHHOLQJ8QLYHUVLW\6KHKDGIROORZHGDFRQYROXWHGURXWHWRJHWKHUHDQGWKH
VLWHZDVSURWHFWHGE\HODERUDWHRYHUODSSLQJVHFXULW\PHDVXUHV5RERWVZHUH
RXWODZV7KH\KDGOLYHGIRUPLOOHQQLDLQWKHGHHSVKDGRZRIWDERR7KRXJK
2OLYDZZDVKHUJXLGHDQGPHQWRUVKHVDZKLPVHOGRP
<HWDVDKXPDQLIRUPURERWVKHIHOWDWUHPRURIPLQJOHGIHDUDQG
UHYHUHQFHDWWKLVDQFLHQWSDUWO\PHWDOOLFIRUPEHIRUHKHU+HZDVQHDUO\
WZHQW\PLOOHQQLDROG7KRXJKKHFRXOGDSSHDUKXPDQKHGLGQRWWUXO\ZLVKWR
EHKXPDQ+HZDVLQH[SUHVVLEO\JUHDWHUWKDQWKDWQRZ
6KHKDGOLYHGKDSSLO\DVDSVHXGRSHUVRQIRUVRORQJQRZ(YHQD
UHPLQGHURIZKRDQGZKDWVKHZDVFDPHOLNHFROGILQJHUVDORQJKHUVSLQH7KH
UHFHQWLQFUHDVLQJDWWHQWLRQSDLGWR+DUL
,QGHHG<RXIHDU\RXZLOOEHGHWHFWHG
7KHQHZHVWVHFXULW\PHDVXUHVDUHVRLQYDVLYH
+HQRGGHG<RXDUHFRUUHFWWREHFRQFHUQHG
,QHHGPRUHKHOSLQSURWHFWLQJ+DUL
$GGLQJDQRWKHURIXVWRKLVFORVHDVVRFLDWHVZRXOGGRXEOHWKHGDQJHURI
GHWHFWLRQ
,NQRZ,NQRZEXW
2OLYDZUHDFKHGRXWDQGWRXFKHGKHUKDQG6KHEOLQNHGEDFNWHDUVDQG
VWXGLHGKLVIDFH6PDOOPDWWHUVVXFKDVFRQVLVWHQWPRYHPHQWRIKLV$GDPV
DSSOHZKHQKHVZDOORZHGKDGORQJDJREHHQSHUIHFWHG7RHDVHKLPVHOILQWKLV
PHHWLQJKHKDGRPLWWHGWKHVHPLQRUFRPSXWDWLRQVDQGPRYHPHQWV+HREYLRXVO\
HQMR\HGHYHQPRPHQWDU\IUHHGRPIURPVXFKWD[DWLRQ
,DPFRQVWDQWO\IHDUIXOVKHDGPLWWHG
<RXVKRXOGEH+HLVPXFKWKUHDWHQHG%XW\RXDUHGHVLJQHGWRIXQFWLRQ
EHVWZLWKDKLJKOHYHORIDSSUHKHQVLRQ
,NQRZP\VSHFLILFDWLRQV\HVEXWWDNHWKLVODWHVWPRYHRI\RXUV
LQYROYLQJKLPLQ,PSHULDOSROLWLFVDWWKHKLJKHVWOHYHO,WLPSRVHVVHYHUH
VWUDLQRQP\WDVN
$QHFHVVDU\PRYH
,WPD\GLVWUDFWKLPIURPKLVZRUNIURPSV\FKRKLVWRU\
2OLYDZVKRRNKLVKHDGVORZO\,GRXEWWKDW+HLVDFHUWDLQVSHFLDO
NLQGRIKXPDQGULYHQ+HRQFHUHPDUNHGWRPH*HQLXVGRHVZKDWLWPXVWDQG
WDOHQWGRHVZKDWLWFDQWKLQNLQJWKDWKHPHUHO\KDGWDOHQW
6KHVPLOHGUXHIXOO\%XWKHLVDJHQLXV
$QGOLNHDOOVXFKXQLTXH+XPDQVKDYHWKDWUDUHJUHDWH[FXUVLRQVIURP
WKHPHDQ(YROXWLRQKDVVHOHFWHGWKHPIRULWWKRXJKWKH\GRQRWVHHPWR
UHDOL]HWKDW

$QGZH"
(YROXWLRQFDQQRWDFWRQRQHZKROLYHVIRUHYHU,QDQ\FDVHWKHUHKDV
QRWEHHQWLPH:HFDQDQGGRGHYHORSRXUVHOYHVKRZHYHU
+XPDQVDUHDOVRPXUGHURXV
:HDUHIHZWKH\DUHPDQ\$QGWKH\KDYHGHHSDQLPDOVSLULWVZHFDQQRW
IDWKRPLQWKHHQGQRPDWWHUKRZZHWU\
,FDUHDERXW+DULILUVW
$QGWKH(PSLUHDGLVWDQWVHFRQG"+HJDYHKHUDWKLQVPLOH,FDUH
IRUWKH(PSLUHRQO\VRIDUDVLWVDIHJXDUGVKXPDQLW\
)URPZKDW"
)URPLWVHOI-XVWUHPHPEHU'RUVWKLVLVWKH&XVS(UDDVDQWLFLSDWHG
E\RXUVHOYHVIRUVRORQJ7KHPRVWFULWLFDOSHULRGLQDOORIKLVWRU\
,NQRZWKHWHUPEXWZKDWLVWKHVXEVWDQFH"'RZHKDYHDWKHRU\RI
KLVWRU\"
)RUWKHILUVWWLPH'DQHHO2OLYDZVKRZHGH[SUHVVLRQDUXHIXOJULPDFH
:HDUHQRWFDSDEOHRIDGHHSWKHRU\)RUWKDWZHZRXOGKDYHWRXQGHUVWDQG
KXPDQVIDUEHWWHU
%XWZHKDYHVRPHWKLQJ"
$GLIIHUHQWZD\RIYLHZLQJKXPDQLW\RQHQRZEDGO\VWUDLQHG,WFDXVHG
XVWRVKDSHWKLVJUHDWHVWRIKXPDQLW\VFUHDWLRQVWKH(PSLUH
,GRQRWNQRZRIWKLV
1RQHHGIRU\RXWR:HQRZUHTXLUHDPRUHSURIRXQGYLHZ7KDWLVZK\
+DULLVVRLPSRUWDQW
'RUVIURZQHGWURXEOHGIRUUHDVRQVVKHFRXOGQRWTXLWHH[SUHVV7KLV
HDUOLHUVLPSOHUWKHRU\RIRXUV,WWHOOV\RXWKDWKXPDQLW\QRZPXVWKDYH
SV\FKRKLVWRU\"
([DFWO\:HNQRZWKLVIURPRXURZQFUXGHWKHRU\%XWRQO\WKLV
)RUPRUHZHUHO\RQ+DULDORQH"
$ODV\HV
B
3$57

0$7+,67
0,1,67(5

B
+$5,6(/'21WKRXJKLWLVWKHEHVWH[LVWLQJDXWKRULW\RQWKHGHWDLOVRI
6HOGRQVOLIHWKHELRJUDSK\E\*DDO'RUQLFNFDQQRWEHWUXVWHGUHJDUGLQJWKH
HDUO\ULVHWRSRZHU$VD\RXQJPDQ'RUQLFNPHW6HOGRQRQO\WZR\HDUVEHIRUH
WKHJUHDWPDWKLVWVGHDWK%\WKHQUXPRUDQGHYHQOHJHQGKDGDOUHDG\EHJXQWR
JURZDERXW6HOGRQSDUWLFXODUO\UHJDUGLQJKLVVKDGRZ\SHULRGRIODUJHVFDOH
DXWKRULW\ZLWKLQWKHIDGLQJ,PSHULXP
+RZ6HOGRQEHFDPHWKHRQO\PDWKLVWLQDOO*DODFWLFKLVWRU\WRDVFHQGWR
SROLWLFDOSRZHUUHPDLQVRQHRIWKHPRVWLQWUDFWDEOHSX]]OHVIRU6HOGRQ
VFKRODUV+HJDYHQRVLJQRIDPELWLRQVEH\RQGWKHEXLOGLQJRIDVFLHQFHRI
KLVWRU\DOOWKHZKLOHHQYLVLRQLQJQRWWKHPHUHIDWKRPLQJRIWKHSDVWEXW
LQIDFWWKHSUHGLFWLRQRIWKHIXWXUH $V6HOGRQKLPVHOIUHPDUNHGWR'RUQLFN
KHHDUO\RQGHVLUHGWKHSUHYHQWLRQRIFHUWDLQNLQGVRIIXWXUHV 
&HUWDLQO\WKHP\VWHULRXVH[LWRI(WR'HPHU]HODV)LUVW0LQLVWHUZDVWKH
RSHQLQJDFWLQDSOD\RIODUJHSURSRUWLRQV7KDW&OHRQ,LPPHGLDWHO\WXUQHGWR
6HOGRQVXJJHVWVWKDW'HPHU]HOKDQGSLFNHGKLVVXFFHVVRU<HWZK\JRWR6HOGRQ"
+LVWRULDQVDUHGLYLGHGDERXWWKHPRWLYDWLRQVRIWKHFHQWUDOSOD\HUVLQWKLV
FUXFLDOPRPHQW7KH(PSLUHKDGHQWHUHGDSHULRGRIFKDOOHQJHDQGGLVUXSWLRQ
FRPLQJHVSHFLDOO\IURPZKDW6HOGRQWHUPHGWKHFKDRVZRUOGV+RZ6HOGRQ
DGURLWO\PDQHXYHUHGDJDLQVWSRZHUIXORSSRQHQWVGHVSLWHQRUHFRUGHGH[SHULHQFH
LQWKHSROLWLFDODUHQDUHPDLQVDQDFWLYHEXWYH[LQJDUHDRIUHVHDUFK

(1&<&/23(',$*$/$&7,&$

>1RWH$OOTXRWDWLRQVIURPWKH(QF\FORSHGLD*DODFWLFDKHUHUHSURGXFHGDUH
WDNHQIURPWKHWKHGLWLRQSXEOLVKHG)(E\WKH(QF\FORSHGLD
*DODFWLFD3XEOLVKLQJ&R7HUPLQXVZLWKSHUPLVVLRQRIWKHSXEOLVKHUV@


+HKDGPDGHHQRXJKHQHPLHVWRDFTXLUHDQLFNQDPH+DUL6HOGRQPXVHGDQG
QRWHQRXJKIULHQGVWRKHDUZKDWLWZDV
+HFRXOGIHHOWKHWUXWKRIWKDWLQWKHPXUPXULQJHQHUJ\LQWKHFURZGV
8QHDVLO\KHZDONHGIURPKLVDSDUWPHQWWRKLVRIILFHDFURVVWKHEURDGVTXDUHV
RI6WUHHOLQJ8QLYHUVLW\7KH\GRQWOLNHPHKHVDLG
'RUV9DQDELOLPDWFKHGKLVVWULGHHDVLO\VWXG\LQJWKHPDVVHGIDFHV,
GRQRWVHQVHDQ\GDQJHU
'RQWZRUU\\RXUSUHWW\KHDGDERXWDVVDVVLQDWLRQDWWHPSWVDWOHDVW
QRWULJKWDZD\
0\\RXUHLQDILQHPRRGWRGD\
,KDWHWKLVVHFXULW\VFUHHQ:KRZRXOGQW"
7KH,PSHULDO6SHFLDOVKDGIDQQHGRXWLQZKDWWKHLUFDSWDLQWHUPHGDQ
HQJDJLQJSHULPHWHU DURXQG+DULDQG'RUV6RPHFDUULHGIODVKVFUHHQ
SURMHFWRUVFDSDEOHRIZDUGLQJRIIDIXOOKHDY\ZHDSRQVDVVDXOW2WKHUVORRNHG
HTXDOO\GDQJHURXVEDUHKDQGHG
7KHLUVFDUOHWDQGEOXHXQLIRUPVPDGHLWHDV\WRVHHZKHUHWKHFURZGZDV
LPSLQJLQJRQWKHPRYLQJ VHFXULW\ERXQGDU\DV+DULZDONHGVORZO\DFURVVWKH
PDLQFDPSXVVTXDUH:KHUHWKHFURZGZDVWKLFNHVWWKHEULJKWXQLIRUPVVLPSO\
EXOOHGWKHLUZD\WKURXJK7KHHQWLUHVSHFWDFOHPDGHKLPDFXWHO\XQFRPIRUWDEOH
6SHFLDOVZHUHQRWQRWHGIRUWKHLUGLSORPDF\DQGWKLVZDVDIWHUDOODTXLHW
SODFHRIOHDUQLQJ2UKDGEHHQ
'RUVFODVSHGKLVKDQGLQUHDVVXUDQFH$)LUVW0LQLVWHUFDQWVLPSO\
ZDONDURXQGZLWKRXW
,PQRW)LUVW0LQLVWHU
7KH(PSHURUKDVGHVLJQDWHG\RXDQGWKDWVHQRXJKIRUWKLVFURZG
7KH+LJK&RXQFLOKDVQWDFWHG8QWLOWKH\GR
<RXUIULHQGVZLOODVVXPHWKHEHVWVKHVDLGPLOGO\
7KHVHDUHP\IULHQGV"+DULH\HGWKHFURZGVXVSLFLRXVO\
7KH\UHVPLOLQJ
6RWKH\ZHUH2QHFDOOHG+DLOWKH3URI0LQLVWHUDQGRWKHUVODXJKHG
,VWKDWP\QLFNQDPHQRZ"
:HOOLWVQRWDEDGRQH
:K\GRWKH\IORFNVR"
3HRSOHDUHGUDZQWRSRZHU
,PVWLOOMXVWDSURIHVVRU
7RRIIVHWKLVLUULWDWLRQ'RUVFKXFNOHGDWKLPDZLIHO\UHIOH[
7KHUHVDQDQFLHQWVD\LQJ7KHVHDUHWKHWLPHVWKDWIU\PHQVVRXOV
<RXKDYHDELWRIKLVWRULFDOZLVGRPIRUHYHU\WKLQJ
,WVRQHRIWKHIHZSHUNVWKDWFRPHZLWKEHLQJDQKLVWRULDQ
6RPHRQHFDOOHG+H\0DWK0LQLVWHU
+DULVDLG,GRQWOLNHWKDWQDPHDQ\EHWWHU
*HWXVHGWRLW<RXOOEHFDOOHGZRUVH
7KH\SDVVHGE\WKHJUHDW6WUHHOLQJIRXQWDLQDQG+DULWRRNUHIXJHLQD
PRPHQWRIFRQWHPSODWLQJLWVKLJKDUFKLQJZDWHUV7KHVSODVKHVGURZQHGRXWWKH
FURZGDQGKHFRXOGDOPRVWLPDJLQHKHZDVEDFNLQKLVVLPSOHKDSS\OLIH7KHQ
KHKDGRQO\KDGWRZRUU\DERXWSV\FKRKLVWRU\DQG6WUHHOLQJ8QLYHUVLW\
LQILJKWLQJ7KDWVQXJOLWWOHZRUOGKDGYDQLVKHGSHUKDSVIRUHYHUWKHPRPHQW
&OHRQGHFLGHGWRPDNHKLPDILJXUHLQ,PSHULDOSROLWLFV

7KHIRXQWDLQZDVJORULRXV\HWHYHQLWUHPLQGHGKLPRIWKHYDVWQHVVWKDW
OD\EHQHDWKVXFKVLPSOLFLWLHV+HUHWKHWLQNOLQJVWUHDPVEURNHIUHHEXWWKHLU
IOLJKWZDVPRPHQWDU\7UDQWRUVZDWHUVUDQLQPRXUQIXOGDUNSLSHVGRZQGLP
SDVVDJHVVFRXUHGE\DQFLHQWHQJLQHHUV$PD]HRIIUHVKZDWHUDUWHULHVDQG
VHZDJHYHLQVWZLQHGWKURXJKWKHHWHUQDOERZHOV7KHVHERGLO\IOXLGVRIWKH
SODQHWKDGSDVVHGWKURXJKXQFRXQWDEOHWULOOLRQVRINLGQH\VDQGWKURDWVKDG
ZDVKHGDZD\VLQVEHHQWRDVWHGZLWKDWPDUULDJHVDQGELUWKVKDGFDUULHGRII
WKHEORRGRIPXUGHUVDQGWKHYRPLWRIWHUPLQDODJRQLHV7KH\IORZHGRQLQ
WKHLUGHHSQLJKWQHYHUNQRZLQJWKHFOHDQYDSRUMR\RIXQIHWWHUHGZHDWKHU
QHYHUIUHHRIPDQVKDQG
7KH\ZHUHWUDSSHG6RZDVKH
7KHLUSDUW\UHDFKHGWKH0DWKLVW'HSDUWPHQWDQGDVFHQGHG'RUVURVH
WKURXJKWKH WUDSWXEHEHVLGHKLPDEUHH]HIOXWWHULQJKHUKDLUDPLDEO\WKH
HIIHFWTXLWHIODWWHULQJ7KH6SHFLDOVWRRNXSZDWFKIXOULJLGSRVLWLRQV
RXWVLGH
-XVWDVKHKDGIRUWKHODVWZHHN+DULWULHGDJDLQZLWKWKHFDSWDLQ
/RRN\RXGRQWUHDOO\QHHGWRNHHSDGR]HQPHQVLWWLQJRXWKHUH
,OOEHWKHMXGJHRIWKDW$FDGHPLFLDQVLULI\RXSOHDVH
+DULIHOWIUXVWUDWHGDWWKHZDVWHRILW+HQRWLFHGD\RXQJ6SHFLDOPDQ
H\HLQJ'RUVZKRVHXQLVXLWUHYHDOHGZKLOHVWLOOFRYHULQJ6RPHWKLQJPDGHKLP
VD\:HOOWKHQ,ZLOOWKDQN\RXWRKDYH\RXUPHQNHHSWKHLUH\HVZKHUHWKH\
EHORQJ
7KHFDSWDLQORRNHGVWDUWOHG+HJODUHGDWWKHRIIHQGLQJPDQDQGVWRPSHG
RYHUWRUHSULPDQGKLP+DULIHOWDVSDUNRIVDWLVIDFWLRQ*RLQJLQWKH
HQWUDQFHWRKLVRIILFH'RUVVDLG,OOWU\WRGUHVVPRUHVWULFWO\
1RQR,PMXVWEHLQJVWXSLG,VKRXOGQWOHWWLQ\WKLQJVOLNHWKDW
ERWKHUPH
6KHVPLOHGSUHWWLO\$FWXDOO\,UDWKHUOLNHGLW
<RXGLG"0HEHLQJVWXSLG"
<RXUEHLQJSURWHFWLYH
'RUVKDGEHHQDVVLJQHG\HDUVEHIRUHWRZDWFKRYHUKLPE\(WR'HPHU]HO
+DULUHIOHFWHGWKDWKHKDGJRWWHQXVHGWRWKDWUROHRIKHUVOLWWOHQRWLFLQJ
WKDWLWFRQIOLFWHGLQDGHHSXQVSRNHQZD\ZLWKKHUDOVREHLQJDZRPDQ'RUV
ZDVXWWHUO\VHOIUHOLDQWEXWVKHKDGTXDOLWLHVZKLFKVRPHWLPHVGLGQRWHDVLO\
MLEHZLWKKHUGXW\%HLQJKLVZLIHIRUH[DPSOH
,ZLOOKDYHWRGRLWPRUHRIWHQKHVDLGOLJKWO\
6WLOOKHIHOWDSDQJRIJXLOWDERXWPDNLQJWURXEOHIRUWKH6SHFLDOPHQ
7KHLUEHLQJKHUHZDVFHUWDLQO\QRWWKHLULGHD&OHRQKDGRUGHUHGLW1RGRXEW
WKH\ZRXOGIDUUDWKHUEHRIIVRPHZKHUHVDYLQJWKH(PSLUHZLWKVZHDWDQGYDORU
7KH\ZHQWWKURXJKWKHKLJKDUFKHGIR\HURIWKH0DWKLVW'HSDUWPHQW+DUL
QRGGLQJWRWKHVWDII'RUVZHQWLQWRKHURZQRIILFHDQGKHKXUULHGLQWRKLV
VXLWHZLWKDQDLURIDQDQLPDOUHWUHDWLQJLQWRLWVEXUURZ+HFROODSVHGLQWR
KLVDLUFKDLULJQRULQJWKHXUJHQWPHVVDJHKRORWKDWKXQJDPHWHUIURPKLV
IDFH
$ZDYHHUDVHGLWDV<XJR$PDU\OFDPHLQWKURXJKWKHFRQQHFWLQJHVWDW
SRUWDO7KHLQWUXVLYHEXON\SRUWDOZDVDOVRWKHIUXLWRI&OHRQVVHFXULW\
RUGHU7KH6SHFLDOVKDGLQVWDOOHGWKHVKLPPHULQJZHDSRQVQXOOLQJILHOGV
HYHU\ZKHUH7KH\OHQWDQLUNVRPHSULFNO\VPHOORIR]RQHWRWKHDLU2QHPRUH
LQWUXVLRQRI5HDOLW\ZHDULQJWKHPDVNRI3ROLWLFV
<XJRVJULQVSOLWKLVEURDGIDFH*RWVRPHQHZUHVXOWV
&KHHUPHXSVKRZPHVRPHWKLQJVSOHQGLG
<XJRVDWRQ+DULVEURDGHPSW\GHVNRQHOHJGDQJOLQJ*RRG
PDWKHPDWLFVLVDOZD\VWUXHDQGEHDXWLIXO
&HUWDLQO\%XWLWGRHVQWKDYHWREHWUXHLQ WKHVHQVHWKDWRUGLQDU\
SHRSOHPHDQ,WFDQVD\QRWKLQJZKDWHYHUDERXWWKHZRUOG
<RXUHPDNLQJPHIHHOOLNHDGLUW\HQJLQHHU
+DULVPLOHG<RXZHUHRQFHUHPHPEHU"

'RQW,
0D\EH\RXGUDWKHUEHVZHDWLQJLWRXWDVDKHDWVLQNHU"
+DULKDG IRXQG<XJRE\FKDQFHHLJKW\HDUVDJRMXVWDIWHUDUULYLQJRQ
7UDQWRUZKHQKHDQG'RUVZHUHRQWKHUXQIURP,PSHULDODJHQWV$QKRXUVWDON
KDGVKRZQ+DULWKDW<XJRZDVDQXQWXWRUHGJHQLXVDWWUDQVUHSUHVHQWDWLRQDO
DQDO\VLV<XJRKDGDJLIWDQXQFRQVFLRXVOLJKWQHVVRIWRXFK7KH\KDG
FROODERUDWHGHYHUVLQFH+DULKRQHVWO\WKRXJKWKHKDGOHDUQHGPRUHIURP<XJR
WKDQWKHRWKHUZD\DURXQG
+D<XJRFODSSHGKLVELJKDQGVWRJHWKHUWKUHHWLPHVLQWKH'DKOLWH
PDQQHURIVKRZLQJDJUHHDEOHKXPRU<RXFDQJURXVHDERXWGRLQJILOWK\UHDO
ZRUOGZRUNEXWDVORQJDVLWVLQDQLFHFRPIRUWDEOHRIILFH,PLQ
SDUDGLVH
,VKDOOKDYHWRWXUQPRVWRIWKHKHDY\OLIWLQJRYHUWR\RX,IHDU
+DULGHOLEHUDWHO\SXWKLVIHHWXSRQKLVGHVN0LJKWDVZHOOORRNFDVXDOHYHQ
LIKHGLGQWIHHOWKDWZD\+HHQYLHG<XJRVKHDY\ERGLHGHDVH
7KLV)LUVW0LQLVWHUVWXII"
,WLVJHWWLQJZRUVH,KDYHWRJRVHHWKH(PSHURUDJDLQ
7KHPDQZDQWV\RX0XVWEH\RXUFUDJJ\SURILOH
7KDWVZKDW'RUVWKLQNVWRR,ILJXUHLWVP\GLVDUPLQJVPLOH$Q\ZD\
KHFDQWKDYHPH
+HZLOO
,IKHIRUFHVWKHPLQLVWHUVKLSRQPH,VKDOOGRVXFKDORXV\MRE&OHRQ
ZLOOILUHPH
<XJRVKRRNKLVKHDG1RWZLVH)DLOHG)LUVW0LQLVWHUVDUHXVXDOO\WULHG
DQGH[HFXWHG
<RXYHEHHQWDONLQJWR'RUVDJDLQ
6KHLVDKLVWRULDQ
<HVDQGZHUHSV\FKRKLVWRULDQV6HHNHUVRISUHGLFWDELOLW\+DULWKUHZ
XSKLVKDQGVLQH[DVSHUDWLRQ:K\GRHVQWWKDWFRXQWIRUDQ\WKLQJ"
%HFDXVHQRERG\LQWKHFLWDGHOVRISRZHUKDVVHHQLWZRUN
$QGWKH\ZRQW2QFHSHRSOHWKLQNZHFDQSUHGLFWZHZLOOQHYHUEHIUHH
RISROLWLFV
<RXUHQRWIUHHQRZ<XJRVDLGUHDVRQDEO\
*RRGIULHQG\RXUZRUVHWUDLWLVLQVLVWLQJRQWHOOLQJPHWKHWUXWKLQD
FDOPYRLFH
,WVDYHVNQRFNLQJVHQVHLQWR\RXUKHDG7KDWZRXOGWDNHORQJHU
+DULVLJKHG,IRQO\PXVFOHVKHOSHGZLWKPDWKHPDWLFV<RXZRXOGEHHYHQ
EHWWHUDWLW
<XJRZDYHGWKHWKRXJKWDZD\<RXUHWKHNH\<RXUHWKHLGHDPDQ
:HOOWKLVIRQWRILGHDVKDVQWJRWDFOXH
,GHDVWKH\OOFRPH
,QHYHUJHWDFKDQFHWRZRUNRQSV\FKRKLVWRU\DQ\PRUH
$QGDV)LUVW0LQLVWHU
,WZLOOEHZRUVH3V\FKRKLVWRU\ZLOOJR
1RZKHUHZLWKRXW\RX
7KHUHZLOOEHVRPHSURJUHVV<XJR,DPQRWYDLQHQRXJKWRWKLQN
HYHU\WKLQJGHSHQGVRQPH
,WGRHV
1RQVHQVH7KHUHVVWLOO\RXWKH,PSHULDO)HOORZVDQGWKHVWDII
:HQHHGOHDGHUVKLS7KLQNLQJOHDGHUVKLS
:HOO,FRXOGFRQWLQXHWRZRUNKHUHSDUWRIWKHWLPH
+DULORRNHGDURXQGKLVVSDFLRXVRIILFHDQGIHOWDSDQJDW WKHWKRXJKWRI
QRWVSHQGLQJHYHU\GD\KHUHVXUURXQGHGE\KLVWRROVWRPHVDQGIULHQGV$V
)LUVW0LQLVWHUKHZRXOGKDYHDPLQRUSDODFHEXWWRKLPLWZRXOGEHPHUH
HPSW\PHDQLQJOHVVH[WUDYDJDQFH
<XJRJDYHKLPDPRFNLQJJULQ)LUVW0LQLVWHULVXVXDOO\FRQVLGHUHGD
IXOOWLPHMRE

,NQRZ,NQRZ%XWPD\EHWKHUHVDZD\
7KHRIILFHKROREORRPHGLQWRIXOOSUHVHQWDWLRQDPHWHUIURPKLVKHDG
7KHRIILFHIDPLOLDUZDVFRGHGWRSLSHWKURXJKRQO\KLJKSULRULW\PHVVDJHV
+DULVODSSHGDNH\RQKLVGHVNDQGWKHSLFWXUHJDYHWKHJDWKHULQJLPDJHDUHG
VTXDUHIUDPHWKHVLJQDOWKDWKLVILOWHUIDFHZDVRQ<HV"
&OHRQVSHUVRQDODLGHDSSHDUHGLQUHGWXQLFDJDLQVWDEOXHEDFNJURXQG
<RXDUHVXPPRQHGWKHZRPDQVDLGVLPSO\
8K,DPKRQRUHG:KHQ"
7KHZRPDQZHQWLQWRGHWDLOVDQG+DULZDVLPPHGLDWHO\WKDQNIXOIRUWKH
ILOWHUIDFH7KHSHUVRQDORIILFHUZDVLPSRVLQJDQGKHGLGQRWZDQWWRDSSHDU
WREHZKDWKHZDVDGLVWUDFWHGSURIHVVRU+LVILOWHUIDFHKDGDWDLORUHG
HWLTXHWWHPHQX+HKDGDXWRPDWLFDOO\WKXPEHGLQDVXLWHRIERG\ODQJXDJH
SRVWXUHVDQGJHVWXUHVWDLORUHGWRPDVNKLVWUXHIHHOLQJV
9HU\ZHOOLQWZRKRXUV,VKDOOEHWKHUHKHFRQFOXGHGZLWKDVPDOO
ERZ7KHILOWHUZRXOGUHQGHUWKDWVDPHPRWLRQVKDSHGWRWKHSURWRFROVRIWKH
(PSHURUVVWDII
'UDW+HVODSSHGKLVGHVNPDNLQJWKHKRORGLVVROYH0\GD\LV
HYDSRUDWLQJ
:KDWVLWPHDQ"
7URXEOH(YHU\WLPH,VHH&OHRQLWVWURXEOH
,GXQQRFRXOGEHDFKDQFHWRVWUDLJKWHQRXW
,MXVWZDQWWREHOHIWDORQH
$)LUVW 0LQLVWHUVKLS
<RXEH)LUVW0LQLVWHU,ZLOOWDNHDMREDVDFRPSXWDWLRQDOVSHFLDOLVW
FKDQJHP\QDPH+DULVWRSSHGDQGODXJKHGZU\O\%XW,GIDLODWWKDWWRR
/RRN\RXQHHGWRFKDQJH\RXUPRRG'RQWZDQWWRZDONLQRQWKH
(PSHURUZLWKWKDWVFRZO
8PPP,VXSSRVHQRW9HU\ZHOOFKHHUPHXS:KDWZDVWKDWJRRGQHZV
\RXPHQWLRQHG"
,WXUQHGXSVRPHDQFLHQWSHUVRQDOLW\FRQVWHOODWLRQV
5HDOO\",WKRXJKWWKH\ZHUHLOOHJDO
7KH\DUH+HJULQQHG/DZVGRQWDOZD\VZRUN
7UXO\DQFLHQW",ZDQWHGWKHPIRUFDOLEUDWLRQRISV\FKRKLVWRULFDO
YDOHQFHV7KH\KDYHWREHHDUO\(PSLUH
<XJREHDPHG7KHVHDUHSUH(PSLUH
3UHLPSRVVLEOH
,JRWHP,QWDFWWRR
:KRDUHWKH\"
6RPHIDPRXVW\SHVGXQQRZKDWWKH\GLG
:KDWVWDWXVGLGWKH\KDYHWREHUHFRUGHG"
<XJRVKUXJJHG1RSDUDOOHOKLVWRULFDOUHFRUGVHLWKHU
$UHWKH\DXWKHQWLFUHFRUGLQJV"
0LJKWEH7KH\UHLQDQFLHQWPDFKLQHODQJXDJHVUHDOO\SULPLWLYHVWXII
+DUGWRWHOO
7KHQWKH\FRXOGEHVLPV
,GVD\VR&RXOGEHWKH\UHEXLOWRQDUHFRUGHGXQGHUEDVHWKHQVLPPHG
IRUURXQGQHVV
<RXFDQNLFNWKHPXSWRVHQWLHQFH"
<HDKZLWKVRPHZRUN*RWWRVWLWFKGDWDODQJXDJHV<NQRZWKLVLV
DK
,OOHJDO9LRODWLRQRIWKH6HQWLHQFH&RGHV
5LJKW7KHVHJX\V,JRWLWIURPWKH\UHRQWKDW1HZ5HQDLVVDQFHZRUOG
6DUN7KH\VD\QRERG\SROLFHVWKRVHROG&RGHVDQ\PRUH
,WVWLPHZHNLFNHGRYHUDIHZRIWKRVHDQFLHQWEORFNV
<HVVLU<XJRJULQQHG7KHVHFRQVWHOODWLRQVWKH\UHWKHROGHVW
DQ\ERG\VHYHUIRXQG
+RZGLG\RX"+DULOHWKLVTXHVWLRQWUDLORII<XJRKDGPDQ\VKDG\

FRQQHFWLRQVEXLOWRQKLV'DKOLWHRULJLQV
,WWRRNDOLWWOHDKOXEULFDWLRQ
,WKRXJKWVR:HOOSHUKDSVEHVWWKDW,GRQWKHDUWKHGHWDLOV
5LJKW$V)LUVW0LQLVWHU\RXGRQWZDQWGLUW\KDQGV
'RQWFDOOPHWKDW
6XUHVXUH\RXUHMXVWDMRXUQH\PDQSURIHVVRU:KRVJRLQJWREHODWH
IRUKLVDSSRLQWPHQWZLWKWKH(PSHURULIKHGRHVQWKXUU\XS


:DONLQJWKURXJKWKH,PSHULDO*DUGHQV+DUL ZLVKHG'RUVZDVZLWKKLP+H
UHFDOOHGKHUZDULQHVVRYHUKLVFRPLQJDJDLQWRWKHDWWHQWLRQRI&OHRQ
7KH\UHFUD]\RIWHQVKHKDGVDLGLQDGLVSDVVLRQDWHYRLFH7KHJHQWU\DUH
HFFHQWULFZKLFKDOORZVHPSHURUVWREHEL]DUUH
<RXH[DJJHUDWHKHKDGUHVSRQGHG
'DGULDQWKH)UXJDODOZD\VXULQDWHGLQWKH,PSHULDO*DUGHQVVKHKDG
DQVZHUHG+HZRXOGOHDYHVWDWHIXQFWLRQVWRGRLWVD\LQJWKDWLWVDYHGKLV
VXEMHFWVDQHHGOHVVH[SHQVHLQZDWHU
+DULKDGWRVXSSUHVVDODXJKSDODFHVWDIIZHUHXQGRXEWHGO\VWXG\LQJ
KLP+HUHJDLQHGKLVVREHUPDQQHUE\DGPLULQJWKHRUQDWHWRZHULQJWUHHV
VFXOSWHGLQWKH6SLQGOHULDQVW\OHRIWKUHHPLOOHQQLDEHIRUH+HIHOWWKHWXJ
RIVXFKQDWXUDOEHDXW\GHVSLWHKLV\HDUVEXULHGLQ7UDQWRU+HUHYHUGDQW
ZHDOWKVWUHWFKHG XSWRZDUGWKHEOD]LQJVXQOLNHRXWVWUHWFKHGDUPV7KLVZDV
WKHRQO\RSHQVSRWRQWKHSODQHWDQGLWUHPLQGHGKLPRI+HOLFRQZKHUHKHKDG
EHJXQ
+HKDGEHHQDUDWKHUGUHDP\ER\LQDODERULQJGLVWULFWRI+HOLFRQ7KH
ZRUNLQILHOGVDQGIDFWRULHVZDVHDV\ HQRXJKWKDWKHFRXOGWKLQNKLVRZQ
VKLIWLQJDEVWUDFWPXVLQJVZKLOHKHGLGLW%HIRUHWKH&LYLO6HUYLFHH[DPV
FKDQJHGKLVOLIHKHKDGZRUNHGRXWDIHZVLPSOHWKHRUHPVLQQXPEHUWKHRU\DQG
ODWHUZDVFUXVKHGWRILQGWKDWWKH\ZHUHDOUHDG\NQRZQ+HOD\LQEHGDWQLJKW
WKLQNLQJRISODQHVDQGYHFWRUVDQGWU\LQJWRHQYLVLRQGLPHQVLRQVODUJHUWKDQ
WKUHHOLVWHQLQJWRWKHGLVWDQWEOHDWRIWKHSXIIGUDJRQVZKRFDPHGULIWLQJ
GRZQWKHPRXQWDLQVLGHVLQVHDUFKRISUH\%LRHQJLQHHUHGIRUVRPHDQFLHQW
SXUSRVHSUREDEO\KXQWLQJWKH\ZHUHUHYHUHGEHDVWV+HKDGQRWVHHQRQHIRU
PDQ\\HDUV
+HOLFRQWKHZLOGWKDWZDVZKDWKHORQJHGIRU%XWKLVGHVWLQ\VHHPHG
VXEPHUJHGLQ7UDQWRUVVWHHO
+DULJODQFHGEDFNDQGKLV6SHFLDOVWKLQNLQJWKH\ZHUHVXPPRQHGWURWWHG
IRUZDUG1RKHVDLGKLVKDQGVSXVKLQJDLUWRZDUGWKHPDJHVWXUHKHZDV
PDNLQJDOOWKHWLPHWKHVHGD\VKHUHIOHFWHG(YHQLQWKH,PSHULDO*DUGHQV
WKH\DFWHGDVWKRXJKHYHU\JDUGHQHUZDVDSRWHQWLDODVVDVVLQ
+HKDGFRPHWKLVZD\UDWKHUWKDQVLPSO\HPHUJHIURPWKHJUDYOLIWHU
LQVLGHWKHSDODFHEHFDXVHKHOLNHGWKHJDUGHQVDERYHDOOHOVH,QWKHGLVWDQW
KD]HDZDOORIWUHHVWRZHUHGFRD[HGXSZDUGE\JHQHWLFHQJLQHHULQJXQWLOWKH\
REVFXUHGWKHUDPSDUWVRI7UDQWRU2QO\KHUHRQDOOWKHSODQHWZDVLW
SRVVLEOHWRH[SHULHQFHVRPHWKLQJUHVHPEOLQJWKHRXWRIGRRUV
:KDWDQDUURJDQWWHUP+DULWKRXJKW7RGHILQHDOORIFUHDWLRQE\LWV
O\LQJRXWVLGHWKHGRRUZD\VRIKXPDQLW\
+LVIRUPDOVKRHVFUXQFKHGDJDLQVWJUDYHODVKHOHIWWKHVKHOWHUHG
ZDONZD\VDQGPRXQWHGWKHIRUPDOUDPS%H\RQGWKHIRUHVWHGSHULPHWHUURVHD
SOXPHRIEODFNVPRNH+HVORZHGDQGHVWLPDWHGGLVWDQFHSHUKDSVWHQNOLFNV
6RPHPDMRULQFLGHQWVXUHO\
6WULGLQJEHWZHHQWDOOQHRSDQWKHRQLFFROXPQVKHIHOWDZHLJKWGHVFHQG
$WWHQGDQWVGDVKHGRXWWRZHOFRPHKLPKLV6SHFLDOVWLJKWHQHGXSEHKLQGDQG
WKH\PDGHDOLWWOHSURFHVVLRQWKURXJKWKHORQJFRUULGRUVOHDGLQJWRWKH9DXOW
RI$XGLHQFH+HUHWKHDFFXPXODWHGJUHDWDUWZRUNVRIPLOOHQQLDFURZGHGHDFK
RWKHUDVLIVHHNLQJDFRQVWLWXHQF\LQWKHSUHVHQWWRJLYHWKHPOLIH

7KHKHDY\KDQGRIWKH,PSHULXPOD\XSRQPRVWRIILFLDODUW7KH(PSLUH
ZDVHVVHQWLDOO\DERXWWKHSDVWLWVVROLGLW\DQGVRH[SUHVVHGLWVWDVWHZLWK
DSUHIHUHQFHIRUWKHSUHWW\(PSHURUVIDYRUHGWKHFOHDQVWUDLJKWOLQHVRI
DVFHQGLQJVODEVWKHH[DFWSDUDERODVRIDUFLQJSXUSOHZDWHUIRXQWDLQV
FODVVLFDOFROXPQVDQGEXWWUHVVHVDQGDUFKHV+HURLFVFXOSWXUHDERXQGHG1REOH
EURZVH\HGLQILQLWHSURVSHFWV&RORVVDOEDWWOHVVWRRGIUR]HQDWFOLPDFWLF
PRPHQWVVKDSHGLQJORZLQJVWRQHDQGKRORLGFU\VWDO
$OOZHUHHQWLUHO\SURSHUDQGGHYRLGRIHPEDUUDVVLQJFKDOOHQJH1R
DODUPLQJDUWKHUHWKDQN\RX1RWKLQJGLVWXUELQJZDVHYHQDOORZHGLQSXEOLF
SODFHVRQ7UDQWRUZKLFKWKH(PSHURUPLJKWYLVLW%\H[SRUWLQJWRWKHSHULSKV
DOOKLQWRIWKHXQSOHDVDQWQHVVDQGVPHOORIKXPDQOLYHVWKH,PSHULXPDFKLHYHG
LWVILQDOVWDWHWKHWHUPLQDOO\EODQG
<HWWR+DULWKHUHDFWLRQDJDLQVWEODQGQHVVZDVZRUVH$PRQJWKH
JDOD[\VWZHQW\ILYHPLOOLRQLQKDELWHGSODQHWVHQGOHVVYDULDWLRQVDSSHDUHG
EXWWKHUHVLPPHUHGEHQHDWKWKH,PSHULDOEODQNHWDVW\OHEDVHGVROHO\RQ
UHMHFWLRQ
3DUWLFXODUO\DPRQJWKRVH+DULWHUPHGFKDRVZRUOGV DVPXJDYDQWJDUGH
IXPEOHGIRUWKHVXEOLPHE\VXEVWLWXWLQJIRUEHDXW\DORYHRIWHUURUVKRFN
DQGWKHVLFNHQLQJO\JURWHVTXH7KH\XVHGHQRUPRXVVFDOHRUDFXWH
GLVSURSRUWLRQRUVFDWRORJ\RUGLVFRUGDQGLUUDWLRQDOGLVMXQFWLRQ
%RWKDSSURDFKHVZHUHERULQJ1HLWKHUKDGDQ\DLU\MR\
$ZDOOGLVVROYHGFUDFNOLQJDQGWKH\HQWHUHGWKH9DXOWRI$XGLHQFH
$WWHQGDQWVYDQLVKHGKLV6SHFLDOVIHOOEHKLQG$EUXSWO\+DULZDVDORQH+H
SDGGHGRYHUWKHFXVKLRQ\IORRU%DURTXHH[FHVVOHHUHGDWKLPIURPHYHU\UDLVHG
FRUQLFHXSMXWWLQJRUQDPHQWDQGHODERUDWHZDLQVFRWLQJ
6LOHQFH7KH(PSHURUZDVQHYHUZDLWLQJIRUDQ\RQHRIFRXUVH7KHJORRP\
FKDPEHUJDYHEDFNQRHFKRHVDVWKRXJKWKHZDOOVDEVRUEHGHYHU\WKLQJ
,QGHHGWKH\SUREDEO\GLG1RGRXEWHYHU\,PSHULDOFRQYHUVDWLRQZHQW
LQWRVHYHUDOHDUV7KHUHPLJKWEHHDYHVGURSSHUVKDOIZD\DFURVVWKH*DOD[\
$OLJKWPRYLQJ'RZQDFUDFNOLQJJUDYFROXPQFDPH&OHRQ+DUL6R
KDSS\\RXFRXOGFRPH
6LQFHUHIXVLQJDVXPPRQVE\WKH(PSHURUZDVWUDGLWLRQDOO\JURXQGVIRU
H[HFXWLRQ+DULFRXOGEDUHO\VXSSUHVVDZU\VPLOH0\KRQRUWRVHUYHVLUH
&RPHVLW
&OHRQPRYHGKHDYLO\5XPRUKDGLWWKDWKLVDSSHWLWHDOUHDG\OHJHQGDU\
KDGEHJXQWRH[FHHGHYHQWKHVNLOOVRIKLVFRRNVDQGSK\VLFLDQV:HKDYHPXFK
WRGLVFXVV
7KH(PSHURUVFRQVWDQWDWWHQGDQWJORZVHUYHGWRVXEWO\HQKDQFHKLPZLWK
LWVQLPEXV7KHFRQWUDVWZDVPLOGVHUYLQJWRGUDZKLPRXWIURPDFRPSDUDWLYH
VXUURXQGLQJJORRP7KHURRPVHPEHGGHGLQWHOOLJHQFHVWUDFNHGKLVH\HVDQGVKHG
DGGHGOLJKWZKHUHKLVJD]HIHOODJDLQZLWKGHOLFDWHHPSKDVLVVXEWO\DSSOLHG
7KHVRIWWRXFKRIKLVUHJDUG\LHOGHGDUDGLDQFHZKLFKJXHVWVVFDUFHO\QRWLFHG
EXWZKLFKDFWHGVXEFRQVFLRXVO\DGGLQJWRWKHLUDZH+DULNQHZWKLV\HWWKH
HIIHFWVWLOOZRUNHG&OHRQORRNHGPDVWHUIXOUHJDO
,IHDUZHKDYHKLWDVQDJ&OHRQVDLG
1RWKLQJ\RXFDQQRWPDVWHU,DPVXUHVLUH
&OHRQVKRRNKLVKHDGZHDULO\1RZGRQW\RXWRRJRRQDERXWP\
SURGLJLRXVSRZHUV6RPHHOHPHQWVKHGUHZWKHZRUGRXWZLWKGU\GLVGDLQ
REMHFWWR\RXUDSSRLQWPHQW
,VHH+DULNHSWKLVIDFHEODQNEXWKLVKHDUWOHDSHG
'RQRWEHJOXP,GRZDQW\RXIRUP\)LUVW0LQLVWHU
<HVVLUH
%XW,DPQRWGHVSLWHFRPPRQSODFHDVVXPSWLRQXWWHUO\IUHHWRDFW
,UHDOL]HWKDWPDQ\RWKHUVDUHEHWWHUTXDOLILHG
,QWKHLURZQH\HVVXUHO\
DQGEHWWHUWUDLQHGDQG
$QGNQRZQRWKLQJRISV\FKRKLVWRU\

'HPHU]HOH[DJJHUDWHGWKHXWLOLW\RISV\FKRKLVWRU\
1RQVHQVH+HVXJJHVWHG\RXUQDPHWRPH
<RXNQRZDVZHOODV@WKDWKHZDVH[KDXVWHGQRWLQKLVEHVWIUDPHRI
+LVMXGJPHQWZDVLPSHFFDEOHIRUGHFDGHV&OHRQH\HG+DUL2QHZRXOG
DOPRVWWKLQN\RXZHUHWU\LQJWRDYRLGDSSRLQWPHQWDV)LUVW0LQLVWHU
1RVLUHEXW
0HQDQGZRPHQIRUWKDWPDWWHUKDYHNLOOHGIRUIDUOHVV
$QGEHHQNLOOHGRQFHWKH\JRWLW
&OHRQFKXFNOHG7UXHHQRXJK6RPH)LUVW0LQLVWHUVGRJHWVHOI
LPSRUWDQWEHJLQWRVFKHPHDJDLQVWWKHLU(PSHURUEXWOHWXVQRWGZHOOXSRQ
WKHIHZIDLOXUHVRIRXUV\VWHP
+DULUHFDOOHG'HPHU]HOVD\LQJ7KHVXFFHVVLRQRIFULVHVKDVUHDFKHGWKH
SRLQWZKHUHWKHFRQVLGHUDWLRQRIWKH7KUHH/DZVRI5RERWLFVSDUDO\]HVPH
'HPHU]HOKDGEHHQXQDEOHWRPDNHFKRLFHVEHFDXVHWKHUHZHUHQRJRRGRQHVOHIW
(YHU\SRVVLEOHPRYHKXUWVRPHRQHEDGO\6R'HPHU]HODVXSUHPHLQWHOOLJHQFH
DFODQGHVWLQHKXPDQLIRUPURERWKDGVXGGHQO\OHIWWKHVFHQH:KDWFKDQFHGLG
+DULKDYH"
,ZLOODVVXPHWKHSRVLWLRQRIFRXUVH+DULVDLGTXLHWO\LI
QHFHVVDU\
2KLWVQHFHVVDU\,ISRVVLEOH\RXPHDQ)DFWLRQVRQWKH+LJK&RXQFLO
RSSRVH\RX7KH\GHPDQGDIXOOGLVFXVVLRQ
+DULEOLQNHGDODUPHG:LOO,KDYHWRGHEDWH"
DQGWKHQDYRWH
,KDGQRLGHDWKH&RXQFLOFRXOGLQWHUYHQH
5HDGWKH&RGHV7KH\GRKDYHWKDWSRZHU7\SLFDOO\WKH\GRQRWXVHLW
ERZLQJWRWKHVXSHULRUZLVGRPRIWKH(PSHURU$GU\OLWWOHODXJK1RWWKLV
WLPH
,ILWZRXOGPDNHLWHDVLHUIRU\RX,FRXOGDEVHQWP\VHOIZKLOHWKH
GLVFXVVLRQ
1RQVHQVH,ZDQWWRXVH\RXWRFRXQWHUWKHP
,KDYHQWDQ\LGHDVKRZWR
,OOVFHQWRXWWKHLVVXHV\RXDGYLVHPHRQDQVZHUV'LYLVLRQRIODERU
QRWKLQJFRXOGEHVLPSOHU
8P'HPHU]HOKDGVDLGFRQILGHQWO\,IKHEHOLHYHV\RXKDYHWKH
SV\FKRKLVWRULFDODQVZHUKHZLOOIROORZ\RXHDJHUO\DQGWKDWZLOOPDNH\RXD
JRRG)LUVW0LQLVWHU+HUHLQVXFKDXJXVWVXUURXQGLQJVWKDWVHHPHGTXLWH
XQOLNHO\
:HZLOOKDYHWRHYDGHWKHVHRSSRQHQWVPDQHXYHUDJDLQVWWKHP
,KDYHQRLGHDKRZWRGRWKDW
2IFRXUVH\RXGRQRW,GR%XW\RXVHHWKH(PSLUHDQGDOOLWVKLVWRU\
DVRQHXQIXUOLQJVFUROO<RXKDYHWKHWKHRU\
&OHRQUHOLVKHGUXOLQJ+DULIHOWLQKLVERQHVWKDWKHGLGQRW$V)LUVW
0LQLVWHUKLVZRUGFRXOGGHWHUPLQHWKHIDWHRIPLOOLRQV7KDWKDGGDXQWHGHYHQ
'HPHU]HO
7KHUHLVVWLOOWKH=HURWKODZ'HPHU]HOKDGVDLGMXVWEHIRUHWKH\
SDUWHGIRUWKHODVWWLPH,WSODFHGWKHZHOOEHLQJRIKXPDQLW\DVDZKROH
DERYHWKDWRIDQ\VLQJOHKXPDQ7KH)LUVWODZWKHQUHDG$URERWPD\QRW
LQMXUHDKXPDQEHLQJRUWKURXJKLQDFWLRQDOORZDKXPDQEHLQJWRFRPHWR
KDUPXQOHVVWKLVZRXOGYLRODWHWKH=HURWK/DZ)DLUHQRXJKEXWKRZZDV+DUL
WRFDUU\RXWDMREZKLFKQRWHYHQ'HPHU]HOFRXOGGR"+DULUHDOL]HGWKDWKHKDG
EHHQVLOHQWIRUWRRORQJDQGWKDW&OHRQZDVZDLWLQJ:KDWFRXOGKHVD\"
8PZKRRSSRVHVPH"
6HYHUDOIDFWLRQVXQLWHGEHKLQG%HWDQ/DPXUN
:KDWVKLVREMHFWLRQ"
7RKLVVXUSULVHWKH(PSHURUODXJKHGKHDUWLO\7KDW\RXDUHQW%HWDQ
/DPXUN
<RXFDQWVLPSO\

2YHUUXOHWKH&RXQFLO"2IIHU/DPXUNDGHDO"%X\KLPRII"
,GLGQWPHDQWRLPSO\ VLUHWKDW\RXZRXOGVWRRSWR
2IFRXUVH,ZRXOGVWRRSDV\RXSXWLW7KHGLIILFXOW\OLHVZLWK
/DPXUNKLPVHOI+LVSULFHWRDOORZ\RXLQDV)LUVW0LQLVWHUZRXOGEHWRR
KLJK
6RPHKLJKSRVLWLRQ"
7KDWDQGVRPHHVWDWHVSHUKDSVDQHQWLUH=RQH
7XUQLQJDQHQWLUH=RQHRIWKH*DOD[\RYHUWRDVLQJOHPDQ+LJK
VWDNHV
&OHRQVLJKHG:HDUHQRWDVULFKWKHVHGD\V,QWKHUHLJQRI)OHWFK
WKH)XULRXVKHEDUWHUHGZKROH=RQHVVLPSO\IRUVHDWVRQWKH&RXQFLO
<RXUVXSSRUWHUVWKH5R\DOLVWVWKH\FDQWRXWPDQHXYHU/DPXUN"
<RXUHDOO\PXVWVWXG\FXUUHQWSROLWLFVPRUH6HOGRQ7KRXJK,VXSSRVH
\RXUHVRVWHHSHGLQKLVWRU\DOOWKLVVHHPVDELWWULYLDO"
$FWXDOO\+DULWKRXJKWKHZDVVWHHSHGLQPDWKHPDWLFV'RUVVXSSOLHGWKH
KLVWRU\KHQHHGHGRU<XJR,ZLOOGRVR6RWKH5R\DOLVWV
+DYHORVWWKH'DKOLWHVVRWKH\FDQQRWPXVWHUDPDMRULW\FRDOLWLRQ
7KH'DKOLWHVDUHWKDWSRZHUIXO"
7KH\KDYHDQDUJXPHQWSRSXODUZLWKDEURDGDXGLHQFHSOXVDODUJH
SRSXODWLRQ
,GLGQRWNQRZWKH\ZHUHVRVWURQJ0\RZQFORVHDVVLVWDQW<XJR
,NQRZD'DKOLWH:DWFKKLP
+DULEOLQNHG<XJRLVDVWURQJ'DKOLWHWUXH%XWKHLVOR\DODILQH
LQWXLWLYHPDWKLVW%XWKRZGLG\RX
%DFNJURXQGFKHFN&OHRQ ZDYHGKLVKDQGLQDLU\GLVPLVVDO2QHPXVW
NQRZDIHZWKLQJVDERXWD)LUVW0LQLVWHU
+DULGLVOLNHGEHLQJXQGHUDQ,PSHULDOPLFURVFRSHEXWKHNHSWKLVIDFH
EODQN<XJRLVOR\DOWRPH
,NQRZWKHVWRU\KRZ\RXXSOLIWHGKLPIURPKDUGODERUE\SDVVLQJWKH
&LYLO6HUYLFHILOWHUV9HU\QREOHRI\RX%XW,FDQQRWRYHUORRNWKHIDFWWKDW
WKH'DKOLWHVKDYHDUHDG\DXGLHQFHIRUWKHLUIHYHUHGRXWSRXULQJV7KH\
WKUHDWHQWRDOWHUWKHUHSUHVHQWDWLRQRI6HFWRUVLQWKH+LJK&RXQFLOHYHQLQ
WKH/RZHU&RXQFLO6R &OHRQMDEEHGDILQJHUZDWFKKLP
<HVVLUH&OHRQZDVJHWWLQJVWHDPHGXSDERXWQRWKLQJDVIDUDV<XJR
ZDVFRQFHUQHGEXWQRSRLQWLQDUJXLQJ
<RXZLOOKDYHWREHDVFLUFXPVSHFWDVWKH(PSHURUVZLIHGXULQJWKLV
DKWUDQVLWLRQDOSHULRG
+DULUHFDOOHGWKHDQFLHQWVD\LQJWKDWDERYHDOOWKH(PSHURUVZLIH RU
ZLYHVGHSHQGLQJXSRQWKHHUD PXVWNHHSKHUVNLUWVFOHDQQRPDWWHUZKDWPXFN
VKHZDONVDERYH7KHDQDORJ\ZDVXVHGHYHQZKHQWKH(PSHURUSURYHGWREH
KRPRVH[XDORUHYHQZKHQDZRPDQKHOGWKH,PSHULDO3DODFH<HVVLUH8K
WUDQVLWLRQDO"
&OHRQORRNHGRIILQDGLVWUDFWHGZD\DWWKHWRZHULQJVKDGRZ\DUWIRUPV
ORRPLQJDURXQGWKHP%\QRZ+DULXQGHUVWRRGWKDWWKLVSRLQWHGWRWKHFUX[RI
ZK\KHKDGEHHQVXPPRQHG<RXUDSSRLQWPHQWZLOOWDNHDZKLOHDVWKH+LJK
&RXQFLOILGJHWV6R,VKDOOVHHN\RXUDGYLFH
:LWKRXWJLYLQJPHWKHSRZHU
:HOO\HV
+DULIHOWQRGLVDSSRLQWPHQW6R,FDQVWD\LQP\RIILFHDW6WUHHOLQJ"
,VXSSRVHLWZRXOGVHHPIRUZDUGLI\RXFDPHKHUH
*RRG1RZDERXWWKRVH6SHFLDOV
7KH\PXVWUHPDLQZLWK\RX7UDQWRULVPRUHGDQJHURXVWKDQDSURIHVVRU
NQRZV
+DULVLJKHG<HVVLUH
&OHRQORXQJHGEDFNKLVDLUFKDLUIROGLQJLWVHOIDERXWKLPHODERUDWHO\
1RZ,ZRXOGOLNH\RXUDGYLFHRQWKLV5HQHJDWXPPDWWHU
5HQHJDWXP"

)RUWKHILUVWWLPH+DULVDZ&OHRQVKRZVXUSULVH<RXKDYHQRWIROORZHG
WKHFDVH",WLVHYHU\ZKHUH
,DPDELWRXWRIWKHPDLQVWUHDPVLUH
7KH5HQHJDWXPWKH6RFLHW\RI5HQHJDGHV7KH\NLOODQGGHVWUR\
)RUZKDW"
)RUWKHSOHDVXUHRIGHVWUXFWLRQ&OHRQVODSSHGKLVFKDLUDQJULO\DQG
LWUHVSRQGHGE\PDVVDJLQJKLPDSSDUHQWO\DVWDQGDUGDQVZHU7KHODWHVWRI
WKHLUPHPEHUVWRGHPRQVWUDWHWKHLUFRQWHPSWIRUVRFLHW\LVDZRPDQQDPHG
.XWRQLQ6KHLQYDGHGWKH,PSHULDO*DOOHULHVWRUFKPHOWHGDUWPDQ\PLOOHQQLD
ROGDQGNLOOHGWZRJXDUGV7KHQVKHSHDFHIXOO\WXUQHGKHUVHOIRYHUWRWKH
RIILFHUVZKRDUULYHG
<RXVKDOOKDYHKHUH[HFXWHG"
2IFRXUVH&RXUWGHFLGHGVKHZDVJXLOW\TXLFNO\HQRXJKVKHFRQIHVVHG
5HDGLO\"
,PPHGLDWHO\
&RQIHVVLRQXQGHUWKHVXEWOHPLQLVWUDWLRQVRIWKH,PSHULDOVZDV
OHJHQGDU\%UHDNLQJWKHIOHVKZDVHDV\HQRXJKWKH,PSHULDOVEURNHWKH
VXVSHFWVSV\FKHDVZHOO6RVHQWHQFHFDQEHVHWE\\RXLWEHLQJDKLJK
FULPHDJDLQVWWKH,PSHULXP
2K\HVWKDWROGODZDERXWUHEHOOLRXVYDQGDOLVP
,WDOORZVWKHGHDWKSHQDOW\DQGDQ\VSHFLDOWRUWXUH
%XWGHDWKLVQRWHQRXJK1RWIRUWKH5HQHJDWXPFULPHV6R,WXUQWRP\
SV\FKRKLVWRULDQ
<RXZDQWPHWR"
*LYHPHDQ LGHD7KHVHSHRSOHVD\WKH\UHGRLQJLWWREULQJGRZQWKH
H[LVWLQJRUGHUDQGDOOWKDWRIFRXUVH%XWWKH\JHWLPPHQVHSODQHWZLGH
FRYHUDJHWKHLUQDPHVNQRZQE\HYHU\RQHDVWKHGHVWUR\HUVRIWLPHKRQRUHGDUW
7KH\JRWRWKHLUJUDYHVIDPRXV$OOWKHSV\FKHUVVD\WKDWVWKHLUUHDO
PRWLYDWLRQ,FDQNLOOWKHPEXWWKH\GRQWFDUHE\WKDWWLPH
8P+DULVDLGXQFRPIRUWDEO\+HNQHZIXOOZHOOKHFRXOGQHYHU
FRPSUHKHQGVXFKSHRSOH
6RJLYHPHDQLGHD6RPHWKLQJSV\FKRKLVWRULFDO+DULZDVLQWULJXHGE\
WKHSUREOHPEXWQRWKLQJFDPHWRPLQG+HKDGORQJDJROHDUQHGWRGHOLEHUDWHO\
QRWFRQFHQWUDWHRQDYH[LQJTXHVWLRQLPPHGLDWHO\OHWWLQJKLVVXEFRQVFLRXV
KDYHILUVWFUDFN7RJDLQWLPHKHDVNHG6LUH\RXVDZWKHVPRNHEH\RQGWKH
JDUGHQV"
8P"1R&OHRQ JDYHDTXLFNKDQGVLJQDOWRXQVHHQH\HVDQGWKHIDUZDOO
EORVVRPHGZLWKOLJKW$IXOOKRORRIWKHJDUGHQVILOOHGWKHPDVVLYHVSDFH7KH
RLO\EODFNSOXPHKDGJURZQ,WFRLOHGVQDNHOLNHLQWRWKHJUD\VN\
$VRIWQHXWUDOYRLFHVSRNHLQPLGDLU$EUHDNGRZQZLWKLQVXUUHFWLRQ
E\PHFKDQLFDOVKDVFDXVHGWKLVXQIRUWXQDWHODSVHLQGRPHVWLFRUGHU
$WLNWRNULRW"7KLVVRUWRIWKLQJ+DULKDGKHDUGDERXW
&OHRQURVHDQGZDONHGWRZDUGWKHKROR$K\HVDQRWKHUUHFDOFLWUDQW
ULGGOH)RUVRPHUHDVRQWKHPHFKDQLFDOVDUHJRLQJDZU\/RRNDWWKDW+RZPDQ\
OHYHOVDUHEXUQLQJ"
7ZHOYHOHYHOVDUHDIODPHWKHDXWRYRLFHDQVZHUHG,PSHULDO$QDO\VLV
HVWLPDWHVDGHDWKWROORIIRXUKXQGUHGWKLUW\VHYHQZLWKLQDQXQFHUWDLQW\RI
HLJKW\IRXU
,PSHULDOFRVW"&OHRQ GHPDQGHG
0LQRU6RPH,PSHULDO5HJXODUVZHUHKXUWLQVXEGXLQJPHFKDQLFDOV
$K:HOOWKHQLWLVDVPDOOPDWWHU&OHRQZDWFKHGDVWKHZDOOFORVH
XSSHG7KHYLHZSOXQJHGGRZQDVPRNLQJSLW7RWKHVLGHOLNHDEOD]LQJOD\HU
FDNHZKROHIORRUVFXUOHG XSIURPWKHKHDW6SDUNVVKRWEHWZHHQHOHFWULFDO
ERRVWHUV%XUVWSLSHVVKRZHUHGWKHIODPHVEXWKDGOLWWOHHIIHFW
7KHQDGLVWDQWYLHZWHOHVFRSLQJXSLQWRRUELW7KHSURJUDPZDVJLYLQJ
WKH(PSHURUDQH\HIXOVKRZLQJRIILWVFDSDELOLWLHV+DULJXHVVHGWKDWLW
GLGQWRIWHQJHWWKHFKDQFH&OHRQWKH&DOPZDVRQHGHULVLYHQLFNQDPHIRUKLP

IRUKHVHHPHGERUHGZLWKPRVWPDWWHUVWKDWPRYHGPHQ
)URPVSDFHWKHRQO\GHHSJUHHQZDVWKH,PSHULDO*DUGHQVMXVWDVSORWFK
DPLGWKHJUD\VDQGEURZQVRIURRIVDQGURRIDJULFXOWXUH&KDUFRDOEODFNVRODU
FROOHFWRUVDQGEXUQLVKHGVWHHOSROHWRSROH7KHLFHFDSVKDGGLVVLSDWHGORQJ
DJRDQGWKHVHDVVORVKHGLQXQGHUJURXQGFLVWHUQV
7UDQWRUVXSSRUWHGIRUW\ELOOLRQSHRSOHLQDZRUOGZUDSSLQJVLQJOHFLW\
VHOGRPOHVVWKDQKDOIDNLORPHWHUGHHS6HDOHGSURWHFWHGLWVELOOLRQVKDG
ORQJJURZQXVHGWRUHF\FOHGDLUDQGVKRUWSHUVSHFWLYHVDQGIHDUHGWKHRSHQ
VSDFHVDPHUHHOHYDWRUULGHDZD\
7KHYLHZ]RRPHGGRZQLQWRWKHVPRN\SLWDJDLQ+DULFRXOGVHHWLQ\
ILJXUHVOHDSLQJWR WKHLUGHDWKVWRHVFDSHWKHIODPHV+XQGUHGVG\LQJ+DULV
VWRPDFKOXUFKHG,QFURZGHGVWDFNVRIKXPDQLW\DFFLGHQWVWRRNDIHDUVRPH
WROO
6WLOO+DULFDOFXODWHGWKHUHZHUHRQDYHUDJHRQO\DKXQGUHGSHRSOHLQD
VTXDUHNLORPHWHURIWKHSODQHWVVXUIDFH3HRSOHMDPPHGLQWRWKHPRUHSRSXODU
6HFWRUVRXWRISUHIHUHQFHQRWQHFHVVLW\:LWKWKHVHDVSXPSHGEHORZWKHUH
ZDVDPSOHURRPIRUDXWRPDWHGIDFWRULHVGHHSPLQHVDQGLPPHQVHFDYHUQRXV
JURZLQJSRGVZKHUHUDZPDWHULDOVIRUIRRGHPHUJHGZLWKOLWWOHGLUHFWKXPDQ
ODERUQHHGHG7KHVHZHDULVRPHFKRUHVWKHWLNWRNVGLG%XWQRZWKH\ZHUH
EULQJLQJPD\KHPWRWKHLQWULFDF\WKDWZDV7UDQWRUDQG&OHRQIXPHGDVKH
ZDWFKHGWKHGLVDVWHUJURZHDWLQJDZD\ZKROHOD\HUVZLWKILHU\WHHWK
0RUHILJXUHVZULWKHGLQWKHRUDQJHIODPHV7KHVHZHUHSHRSOHQRW
VWDWLVWLFVKHUHPLQGHGKLPVHOI%LOHURVHLQKLVWKURDW7REHDOHDGHUPHDQW
WKDWVRPHWLPHV\RXKDGWRORRNDZD\IURPWKHSDLQ&RXOGKHGRWKDW"
$QRWKHUSX]]OHP\6HOGRQ&OHRQVDLGDEUXSWO\:K\GRWKH WLNWRNV
KDYHWKHVHODUJHVFDOHGLVRUGHUVP\DGYLVHUVNHHSWHOOLQJPHDERXW"$K"
,GRQRW
7KHUHPXVWEHVRPHSV\FKRKLVWRULFDOH[SODQDWLRQ
7KHVHWLQ\SKHQRPHQDPD\ZHOOOLHEH\RQG
:RUNRQLW)LQGRXW
8K\HVVLUH
+DULNQHZHQRXJKWROHW&OHRQSDGSRLQWOHVVO\DURXQGWKHYDXOWIURZQLQJ
DWWKHFRQWLQXLQJZDOOKLJKVFHQHVRIFDUQDJHLQXWWHUVLOHQFH3HUKDSV+DUL
WKRXJKWWKH(PSHURUZDVFDOPEHFDXVHKHKDGVHHQVRPXFKFDODPLW\DOUHDG\
(YHQKRUUHQGRXVQHZVSDOOV$VREHULQJWKRXJKWZRXOGWKHVDPHKDSSHQWRWKH
QDLYH+DUL6HOGRQ"
&OHRQKDGVRPHZD\RIGHDOLQJZLWKGLVDVWHUWKRXJKIRUDIWHUDIHZ
PRPHQWVKHZDYHGDQGWKHVFHQHVYDQLVKHG7KHYDXOWILOOHGZLWKFKHHUIXOPXVLF
DQGWKHOLJKWLQJURVH$WWHQGDQWVVFDPSHUHGRXWZLWKERZOVDQGWUD\VRI
DSSHWL]HUV$PDQDW+DULVHOERZRIIHUHGKLPDVWLP+DULZDYHGLWDZD\7KH
VXGGHQVKLIWLQPRRGZDVKHDG\HQRXJK$SSDUHQWO\LWZDVFRPPRQSODFHWKRXJK
IRUWKH,PSHULDO&RXUW
+DULKDGIHOWVRPHWKLQJWLFNOLQJDWWKHEDFNRIKLVPLQGIRUVHYHUDO
PLQXWHVQRZDQGWKHTXLHWPRPHQWVKDGJLYHQKLPDFKDQFHWRILQDOO\SD\
DWWHQWLRQWRLW$V&OHRQDFFHSWHGDVWLPKHVDLGKHVLWDQWO\6LUH,"
<HV"+DYHRQHDK"
1RVVLU,,KDGDWKRXJKWDERXWWKH5HQHJDWXPDQGWKH.XWRQLQZRPDQ
2KP\,GUDWKHUQRWWKLQNDERXW
6XSSRVH\RXHUDVHKHULGHQWLW\
&OHRQVKDQGVWRSSHGZLWKDVWLPKDOIZD\WRKLVQRVH$K"
7KH\DUHZLOOLQJWRGLHRQFHWKH\YHDWWUDFWHGDWWHQWLRQ7KH\
SUREDEO\WKLQNWKH\ZLOOOLYHRQEHIDPRXV7DNHWKDWDZD\IURPWKHP3HUPLW
QRUHOHDVHRIWKHLUWUXHQDPHV,QDOOPHGLDDQGRIILFLDOGRFXPHQWVJLYHWKHP
DQLQVXOWLQJQDPH
&OHRQIURZQHG$QRWKHUQDPH"
&DOOWKLV.XWRQLQZRPDQ0RURQ2QH7KHQH[WRQH0RURQ7KUR0DNHLW
LOOHJDOE\,PSHULDOGHFUHHWRHYHUUHIHUWRKHUDQ\RWKHUZD\7KHQVKHDVD

SHUVRQYDQLVKHVIURPKLVWRU\1RIDPH
&OHRQEULJKWHQHG1RZWKDWVDQLGHD,OOWU\LW,QRWPHUHO\WDNH
WKHLUOLYHV,FDQWDNHWKHLUVHOYHV
+DULVPLOHGZDQO\DV&OHRQVSRNHWRDQDGMXWDQWJLYLQJLQVWUXFWLRQVIRU
DIUHVK,PSHULDO'HFUHH+DULKRSHGLWZRXOGZRUNEXWLQDQ\FDVHLWKDG
JRWWHQKLPRIIWKHKRRN&OHRQGLGQRWVHHPWRQRWLFHWKDWWKHLGHDKDG
QRWKLQJWRGRZLWKSV\FKRKLVWRU\
3OHDVHGKHWULHGDQDSSHWL]HU7KH\ZHUHVWDUWOLQJO\JRRG
&OHRQEHFNRQHGWRKLP&RPH)LUVW0LQLVWHU,KDYHVRPHSHRSOHIRU\RX
WRPHHW7KH\PLJKWSURYHXVHIXOHYHQWRDPDWKLVW
,DPKRQRUHG'RUVKDGFRDFKHGKLPRQDIHZKRPLOLHVWRXVHZKHQKH
FRXOGWKLQNRIQRWKLQJWRVD\DQGKHWURWWHGRQHRXWQRZ:KDWHYHUZRXOGEH
XVHIXOLQVHUYLFHWRWKHSHRSOH
$K\HVWKHSHRSOH&OHRQGUDZOHG,KHDUVRPXFKDERXWWKHP
+DULUHDOL]HGWKDW&OHRQKDGVSHQWDOLIHOLVWHQLQJWRSDWSUHGLFWDEOH
VSHHFKHV6RUU\VLUH,
,WUHPLQGVPHRIDSROOUHVXOWDVVHPEOHGE\P\7UDQWRULDQ
VSHFLDOLVWV&OHRQWRRNDQDSSHWL]HUIURPDZRPDQKDOIKLVVL]H7KH\DVNHG
7RZKDWGR\RXDWWULEXWHWKHLJQRUDQFHDQGDSDWK\RIWKH7UDQWRULDQPDVVHV"
DQGWKHPRVWFRPPRQUHSO\ZDV'RQWNQRZDQGGRQWFDUH
2QO\ZKHQ&OHRQODXJKHGGLG+DULUHDOL]HWKLVZDVDMRNH


+HZRNHZLWKLGHDVEX]]LQJLQKLVKHDG
+DULKDGOHDUQHGWROLHVWLOOIDFHGRZQLQWKHJRVVDPHUHILHOGQHWWKDW
FUDGOHGKLVQHFNDQGKHDGLQRSWLPXPDOLJQPHQWZLWKKLVVSLQHWRGULIW
DQGOHWWKHIOLWWLQJQRWLRQVFROOLGHPHUJHIUDJPHQW
+HKDGOHDUQHGWKLVWULFNZKLOHZRUNLQJRQKLVWKHVLV2YHUQLJKWKLV
VXEFRQVFLRXVGLGDORWRIKLVZRUNIRUKLPLIKHZRXOGPHUHO\OLVWHQWRWKH
UHVXOWVLQWKHPRUQLQJ%XWWKH\ZHUHGHOLFDWHPRWHVEHVWFDXJKWLQWKHILQH
IDEULFRIKDOIVOHHS
+HVDWXSDEUXSWO\DQGPDGHWKUHHTXLFNQRWHVRQKLVHQGWDEOH7KH
VTXLJJOHVZRXOGEHVHQWWRKLVSULPDU\FRPSXWHUIRUODWHUUHFDOODWWKH
RIILFH
5RRRZZZUU'RUVVDLGVWUHWFKLQJ7KHLQWHOOHFWLVDOUHDG\XS
8PKHVDLGVWDULQJLQWRVSDFH
&PRQEHIRUHEUHDNIDVWLVERG\WLPH
6HHLI\RXGLVDJUHHZLWKWKLVLGHD,MXVWKDG6XSSRVH
,DPQRWLQFOLQHG$FDGHPLFLDQ3URIHVVRU6HOGRQWRDUJXH
+DULFDPHRXWRIKLVWUDQFH'RUVWKUHZEDFNWKHFRYHUVDQGKHDGPLUHG
KHUORQJVOLPOHJV6KHKDGEHHQVFXOSWHGIRUVWUHQJWKDQGVSHHGEXWVXFK
TXDOLWLHVFRQYHUJHGLQDQDJUHHDEOHFRQFHUWRIVXUIDFHVVSULQJ\WRWKHWRXFK
\LHOGLQJ\HWUHVLVWLQJ+HIHOWKLPVHOIMHUNHGRXWRIKLVPRRGDQGLQWR
%RG\WLPH\HV<RXDUHLQFOLQHGIRURWKHUSXUSRVHV
7UXVWDVFKRODUWRSXWWKHSURSHUGHILQLWLRQWRDZRUG
,QWKHZDUPGL]]\LQJVFXIIOHWKDWIROORZHGWKHUHZDVVRPHODXJKWHU
VRPHVXGGHQSDVVLRQDQGEHVWRIDOOQRWLPHWRWKLQN+HNQHZWKLVZDVMXVW
ZKDWKHQHHGHGDIWHUWKHWHQVLRQVRI\HVWHUGD\DQG'RUVNQHZLWHYHQEHWWHU
+HHPHUJHGIURP WKHYDSRULXPWRWKHVPHOORINDIIDQGEUHDNIDVWVHUYHG
RXWE\WKHDXWRV7KHQHZVIOLWWHGDFURVVWKHIDUZDOODQGKHPDQDJHGWR
LJQRUHPRVWRILW'RUVFDPHRXWRIKHUYDSRULXPSDWWLQJKHUKDLUDQGZDWFKHG
WKHZDOOUDSWO\/RRNVOLNHPRUHVWDOOLQJLQWKH+LJK&RXQFLOVKHVDLG
7KH\UHSXWWLQJRIIWKHULWXDOVHDUFKIRUPRUHIXQGLQJLQIDYRURIDUJXPHQWV
RYHU6HFWRUVRYHUHLJQW\,IWKH'DKOLWHV
1RWEHIRUH,LQJHVWVRPHFDORULHV
%XWWKLVLVMXVWWKHVRUWRIWKLQJ\RXPXVWNHHSWUDFNRI

1RW XQWLO,KDYHWR
<RXNQRZ,GRQWZDQW\RXWRGRDQ\WKLQJGDQJHURXVEXWIRUQRZQRW
SD\LQJDWWHQWLRQLVIRROLVK
0DQHXYHULQJZKRVXSDQGZKRVGRZQVSDUHPH)DFWV,FDQIDFH
)RQGRIIDFWVDUHQW\RX"
2IFRXUVH
7KH\FDQEHEUXWDO
6RPHWLPHVWKH\UHDOOZHKDYH+HWKRXJKWDPRPHQWWKHQJUDVSHGKHU
KDQG)DFWVDQGORYH
/RYHLVDIDFWWRR
0LQHLV7KHXQG\LQJSRSXODULW\RIHQWHUWDLQPHQWVGHYRWHGWRURPDQFH
VXJJHVWVWKDWWRPRVWSHRSOHLWLVQRWDIDFWEXWDJRDO
$QK\SRWKHVLV\RXPDWKHPDWLFLDQVZRXOGVD\
*UDQWHG&RQMHFWXUHWREHSUHFLVH
3UHVHUYHXVIURPSUHFLVLRQ
+HVZHSWKHUVXGGHQO\LQWRKLVDUPVFXSSHGKHUUXPSLQKLVKDQGVDQG
ZLWKVRPHHIIRUWKHWRRNWURXEOHWRFRQFHDOOLIWHGKHU%XWWKLVWKLVLVD
IDFW
0\P\6KHNLVVHGKLPILHUFHO\7KHPDQLVQRWDOOPLQG
+HVXFFXPEHGWRWKHVHGXFWLYHPXOWLVHQVLFQHZVDVKHPXQFKHG+HKDG
JURZQXSRQDIDUPDQGOLNHGELJEUHDNIDVWV'RUVDWHVSDULQJO\KHUWZLQ
UHOLJLRQVVKHVDLGZHUHH[HUFLVHDQG+DUL6HOGRQWKHILUVWWRSUHVHUYHKHU
VWUHQJWKIRUWKHVHFRQG+HWKXPEHGKLVRZQKDOIRIWKHZDOOWRWKH
LQILQLWHVLPDOGRLQJVRIPDUNHWVILQGLQJWKHUHDEHWWHULQGH[RIKRZ7UDQWRU
ZDVGRLQJWKDQLQWKHVWHQWRULDQEOXVWHURIWKH+LJK &RXQFLO
$VDPDWKLVWKHOLNHGIROORZLQJWKHGHWDLOV%XWDIWHUILYHPLQXWHVRI
LWKHVODSSHGWKHWDEOHLQIUXVWUDWLRQ
3HRSOHKDYHORVWWKHLUJRRGVHQVH1R)LUVW0LQLVWHUFDQSURWHFWWKHP
IURPWKHLURZQLQQRFHQFH
0\FRQFHUQLVSURWHFWLQJ\RXIURPWKHP+DULEODQNHGKLVKRORDQG
ZDWFKHGKHUVDQRUQDWH'RIWKHIDFWLRQVLQWKH+LJK&RXQFLO5HGWUDFHUV
OLQNHGIDFWLRQVWKHUHZLWKDOOLHVLQWKH/RZ&RXQFLODEHZLOGHULQJVQDNHSLW
<RXGRQWWKLQNWKLV)LUVW0LQLVWHUWKLQJLVJRLQJWRZRUNGR \RX"
,WFRXOG
7KH\UHDEVROXWHO\ULJKW,PQRWTXDOLILHG
,V&OHRQ"
:HOOKHKDVEHHQUHDUHGWRGRWKHMRE
<RXUHGXFNLQJWKHTXHVWLRQ
([DFWO\+DULILQLVKHGKLVVWHDNDQGEHJDQRQWKHHJJTXKLOLVRXIIOp
+HKDGOHIWWKHHVWLPRQDOOQLJKWWRLPSURYHKLVPXVFOHWRQHDQGWKDWPDGH
KLPKXQJU\7KDWDQGWKHGHOLJKWIXOIDFWWKDW'RUVYLHZHGVH[DVDQDWKOHWLF
RSSRUWXQLW\
,VXSSRVH\RXUSUHVHQWVWUDWHJ\LVEHVW'RUVVDLGWKRXJKWIXOO\
5HPDLQDPDWKLVWDWDORIW\UHPRYHIURPWKHIUD\
5LJKW1RERG\DVVDVVLQDWHVDJX\ZLWKQRSRZHU
%XWWKH\GRHUDVHWKRVHZKRPLJKWJHWLQWKHZD\RIWKHLUWDNLQJ
SRZHU
+DULKDWHGWKLQNLQJRIVXFKWKLQJVVRHDUO\+HGXJLQWRWKHVRXIIOp,W
ZDVHDV\WRIRUJHWDPLGWKHWDVWHVVSHFLDOO\GHVLJQHGWRILWKLVRZQZHOO
WDEXODWHGOLNHVWKDWWKHPDQXIDFWXUXPEXLOWWKHLUPHDOIURPVHZDJH(JJVWKDW
KDGQHYHUNQRZQWKHEHOO\RIDELUG0HDWDSSHDUHGZLWKRXWVNLQRUERQHVRU
JULVWOHRUIDW&DUURWVDUULYHGZLWKRXWWRSNQRWV$IRRGPDQIDFZDVGHOLFDWHO\
WXQHGWRUHSURGXFHWDVWHVMXVWVKRUWRIWKHDELOLW\WRDFWXDOO\PDNHDOLYH
FDUURW7KHPLQRULVVXHRIZKHWKHUKLVVRXIIOpWDVWHGOLNHDUHDORQHPDGHE\
DILQHFKHIIDGHGWRXQLPSRUWDQFHFRPSDUHGZLWKWKHIDFWWKDWLWWDVWHGJRRG
WRKLPWKH RQO\DXGLHQFHWKDWPDWWHUHG
+HUHDOL]HGWKDW'RUVKDGEHHQWDONLQJIRUVRPHPRPHQWVDERXW+LJK

&RXQFLOPDQHXYHULQJVDQGKHKDGQRWUHJLVWHUHGDZRUG6KHKDGDGYLFHRQKRZ
WRKDQGOHWKHLQHYLWDEOHQHZVSHRSOHRQKRZWRUHFHLYHFDOOVRQHYHU\WKLQJ
(YHU\RQHGLGWKHVHGD\V
+DULILQLVKHGKDGVRPHNDIIDQGIHOWUHDG\WRIDFHWKHGD\DVD
PDWKLVWQRWDVDPLQLVWHU5HPLQGVPHRIZKDWP\PRWKHUXVHGWRVD\.QRZ
KRZ\RXPDNH*RGODXJK"
'RUVORRNHGEODQNGUDZQRXWRIKHUFRQFHQWUDWLRQ+RZWRRKWKLVLV
KXPRU"
<RXWHOOKLP\RXUSODQV
6KHODXJKHGDJUHHDEO\
2XWVLGHWKHLUDSDUWPHQWWKH\DFTXLUHGWKH6SHFLDOVDJDLQ+DULIHOWWKH\
ZHUHXQQHFHVVDU\'RUVZDVTXLWHHQRXJK%XWKHFRXOGVFDUFHO\H[SODLQWKDWWR
,PSHULDORIILFLDOV7KHUHZHUHRWKHU6SHFLDOVRQWKHIORRUVDERYHDQGEHORZDV
ZHOODIXOOYROXPHGHIHQVHVFUHHQ+DULZDYHGWRIULHQGVKHVDZRQWKHZD\
DFURVVWKH6WUHHOLQJFDPSXVEXWWKHSUHVHQFHRIWKH6SHFLDOVKHOGWKHPDWWRR
JUHDWDGLVWDQFHWRVSHDN
+HKDGDORWRI0DWKLVW'HSDUWPHQWEXVLQHVVWRWHQGWREXWKHIROORZHG
KLVLQVWLQFWDQGSXWKLVFDOFXODWLRQVILUVW%ULVNO\KHUHWULHYHGKLVLGHDV
IURPWKHEHGVLGHQRWHSDGDQGVWDUHGDWWKHPGRRGOLQJDEVHQWO\LQDLU
VWLUULQJV\PEROVOLNHDSRWRIVRXSIRURYHUDQKRXU
:KHQKHZDVDWHHQDJHUWKHULJLGGULOOVRIVFKRROLQJKDGPDGHKLPWKLQN
WKDWPDWKHPDWLFVZDVMXVWIHOLFLW\ZLWKDSDUWLFXODUNLQGRIPLQXWLDHNQRZLQJ
WKLQJVDVRUWRIKLJKJUDGHFRLQFROOHFWLQJ<RXOHDUQHGUHODWLRQVDQG
WKHRUHPVDQGSXWWKHPWRJHWKHU
2QO\VORZO\GLGKHJOLPSVHWKHVRDULQJVWUXFWXUHVDERYHHDFKGLVFLSOLQH
*UHDWVSDQVMRLQHGWKHYLVWDVRIWRSRORJ\WRWKHLQILQLWHVLPDOLQWULFDFLHVRI
GLIIHUHQWLDOVRUWKHSORGGLQJVW\OHVRIQXPEHUWKHRU\WRWKHVKLIWLQJVDQGV
RIJURXSDQDO\VLV2QO\WKHQGLGKHVHHPDWKHPDWLFVDVDODQGVFDSHD
WHUULWRU\RIWKHPLQGWRURYHDQGVFRXW
7RWUDYHUVHWKRVHH[SDQVHVKHZRUNHGLQPLQGWLPHORQJVWUHWFKHVRI
XQLQWHUUXSWHGIORZZKHQKHFRXOGFRQFHQWUDWHXWWHUO\RQSUREOHPVIL[LQJWKHP
OLNHIOLHVLQWLPHOHVVDPEHUWXUQLQJWKHPWKLVZD\DQGWKDWWRKLVLQVSHFWLQJ
OLJKWXQWLOWKH\\LHOGHGWKHLUVHFUHWV
3KRQHVSHRSOHSROLWLFVDOOWKHVHWUDQVSLUHGLQUHDOWLPHVQLSSLQJ
KLVWKRXJKWWUDLQNLOOLQJPLQGWLPH6RKHOHW<XJRDQG'RUVDQGRWKHUVIHQG
RIIWKHZRUOGWKURXJKRXWWKHPRUQLQJ
%XWWRGD\<XJRKLPVHOIVQLSSHGKLVFRQFHQWUDWLRQ-XVWDPRKHVDLG
VOLSSLQJWKURXJKWKHFUDFNOLQJGRRUILHOG7KLVSDSHUORRNULJKW"
+HDQG<XJRKDGGHYHORSHGDSODXVLEOHFRYHUIRUWKHSV\FKRKLVWRU\
SURMHFW7KH\UHJXODUO\SXEOLVKHGUHVHDUFKRQWKHQRQOLQHDUDQDO\VLVRI
VRFLDOQXJJHWVDQGNQRWVDVXEILHOGZLWK DQKRQRUDEOHDQGGXOOKLVWRU\
7KHLUDQDO\VLVDSSOLHGWRVXEJURXSVDQGIDFWLRQVLQ7UDQWRUDQGRFFDVLRQDOO\
RQRWKHUZRUOGV
7KHUHVHDUFKZDVLQIDFWXVHIXOWRSV\FKRKLVWRU\VHUYLQJDVDVXEVHWRI
HTXDWLRQVWRZKDW<XJRLQVLVWHGRQFDOOLQJWKHIXOO6HOGRQ(TXDWLRQV+DUL
KDGJLYHQXSEHLQJLUNHGDWWKLVWHUPHYHQWKRXJKKHZLVKHGWRNHHSD
SHUVRQDOGLVWDQFHIURPWKHWKHRU\
7KRXJKVFDUFHO\DZDNLQJKRXUSDVVHGZLWKRXWKLVWKLQNLQJDERXW
SV\FKRKLVWRU\KHGLGQRWZDQWLWWREHDWHPSODWHIRUKLVRZQZRUOGYLHZ
1RWKLQJURRWHGLQDSDUWLFXODUSHUVRQDOLW\FRXOGKRSHWRGHVFULEHWKHKRUGHRI
VDLQWVDQGUDVFDOVUHYHDOHGE\KXPDQKLVWRU\2QHKDGWRWDNHWKHORQJHVWYLHZ
SRVVLEOH
6HH<XJRVDLGPDNLQJOLQHVRISULQWDQGV\PEROVFRDOHVFHRQ+DULV
KROR,JRWDOOWKHDQDO\VLVRIWKH'DKOLWHFULVLV1HDWDV\RXSOHDVHKXK"
8PZKDWVWKH'DKOLWHFULVLV"
<XJRVVXUSULVHZDVSURIRXQG:HUHQRWEHLQUHSUHVHQWHG
<RXOLYHLQ6WUHHOLQJ

2QFHD'DKODQ\RXUHDOZD\VRQH-XVWOLNH\RXIURP+HOLFDO
+HOLFRQ,VHH\RXGRQWKDYHHQRXJKGHOHJDWHVLQWKH/RZ&RXQFLO"
2UWKH+LJK
7KH&RGHVDOORZ
7KH\UHRXWRIGDWH
'DKOLWHVJHWDSURSRUWLRQDOVKDUH
$QGRXUQHLJKERUVWKH5DWDQQDQDKVDQGWKH4XLSSRQVWKH\UHVFKHPLQ
DJDLQVWXV
+RZVR"
7KHUHUH'DKODQVLQSOHQW\RWKHU6HFWRUV7KH\GRQWJHWUHSUHVHQWHG
<RXUHVSRNHQIRUE\RXU6WUHHOLQJ
/RRN+DUL\RXUHD+HOLFDO:RXOGQWXQGHUVWDQG3OHQW\6HFWRUV
WKH\UHMXVWSODFHVWRVOHHS'DKOLVDSHRSOH
7KH&RGHVVHWIRUWKUXOHVIRUDFFRPPRGDWLQJVHSDUDWHVXEFXOWXUHV
HWKQLFLWLHV
7KH\UHQRWZRUNLQ
+DULVDZIURP<XJRVMXWWLQJMDZWKDWWKLVZDVQRWDSRLQWIRUJUDFHIXO
GHEDWH+HGLGNQRZVRPHWKLQJRIWKHVORZO\JDWKHULQJFRQVWLWXWLRQDOFULVLV
7KH&RGHVKDGPDLQWDLQHGDEDODQFHRIIRUFHVIRUPLOOHQQLDEXWRQO\E\
LQQRYDWLYHDGDSWDWLRQ/LWWOHRIWKDWVHHPHGDYDLODEOHQRZ:HDJUHHRQWKDW
6RKRZGRHVRXUUHVHDUFKEHDUXSRQ'DKO"
6HH,WRRNWKHVRFLRIDFWRUDQDO\VLVDQG
<XJRKDGDQLQWXLWLYHJUDVSRIQRQOLQHDUHTXDWLRQV,WZDVDOZD\VD
SOHDVXUHWRZDWFKKLVELJKDQGVFXWWKHDLUVOLFLQJWKURXJKSRLQWVDQG
SRXQGLQJREMHFWLRQVWRSXOS$QGWKHFDOFXODWLRQVZHUHJRRGLIDELWVLPSOH
7KHQXJJHWVDQGNQRWVZRUNDWWUDFWHG OLWWOHDWWHQWLRQ,WKDGPDGHVRPH
LQPDWKHPDWLFVZULWHKLPRIIDVDSURPLVLQJ\RXQJPDQZKRKDGQHYHUULVHQWR
KLVSRWHQWLDO7KLVZDVSHUIHFWO\DOOULJKWZLWK+DUL6RPHPDWKLVWVJXHVVHG
WKDWKLVWUXHFRUHUHVHDUFKZHQWXQSXEOLVKHGWKHVHKHWUHDWHGNLQGO\EXWJDYH
QRKLQWRIFRQILUPDWLRQ
VRWKHUHVDSUHVVXUHQXJJHWEXLOGLQLQ'DKO\RXEHW<XJR
ILQLVKHG
2IFRXUVHJODQFLQJDWWKHQHZVKRORVVKRZVWKDW
:HOO\HDKEXW,YHSURYHGLWVMXVWLILHG
+DULNHSWKLVIDFHFRPSRVHG<XJRZDVUHDOO\ZRUNHGXSDERXWWKLV
<RXYHVKRZQRQHRIWKHIDFWRUV%XWWKHUHDUHRWKHUVLQWKHNQRWHTXDWLRQV
:HOOVXUHEXWHYHU\ERG\NQRZV
:KDWHYHU\ERG\NQRZVGRHVQWQHHGPXFKSURRI8QOHVVRIFRXUVHLWV
ZURQJ
<XJRVIDFHVKRZHGDUXVKRIHPRWLRQVVXUSULVHFRQFHUQDQJHUKXUW
SX]]OHPHQW<RXGRQWVXSSRUW'DKO+DUL"
2IFRXUVH,GR<XJR$FWXDOO\WKHWUXWKZDVWKDW+DULGLGQWFDUH
%XWWKDWZDVWRREDOGDSRLQWWRPDNHZLWK<XJRVHHPLQJZRXQGHG/RRNWKH
SDSHULVILQH3XEOLVK
7KHWKUHHEDVLFNQRWHTXDWLRQVWKH\UH\RXUV
1RQHHGWRFDOOWKHPWKDW
6XUHMXVWOLNHEHIRUH%XW\RXUQDPHJRHVRQWKHSDSHU
6RPHWKLQJWLFNOHG+DULVPLQGEXWKHVDZWKHULJKWDQVZHUQRZZDVWR
UHDVVXUH<XJR,I\RXOLNH
<XJRZHQWRQDERXWGHWDLOVRISXEOLFDWLRQDQG+DULOHWKLVH\HVGULIW
RYHUWKHHTXDWLRQV7HUPVIRUUHSUHVHQWDWLRQLQPRGHOVRI7UDQWRULDQ
GHPRFUDF\YDOXHWDEOHVIRUVRFLDOSUHVVXUHVWKHZKROHDSSDUDWXV$ELW
VWXII\%XWUHDVVXULQJWRWKRVHZKRVXVSHFWHGWKDWKHZDVKLGLQJKLVPDMRU
UHVXOWVDVKHZDVRIFRXUVH
+DULVLJKHG'DKOZDVDIHVWHULQJSROLWLFDOVRUH'DKOLWHVRQ7UDQWRU
PLUURUHGWKHFXOWXUHRIWKH'DKO*DODFWLF=RQH(YHU\SRZHUIXO=RQHKDGLWV
RZQ6HFWRUV LQ7UDQWRUIRULQIOXHQFHSHGGOLQJDQGJHQHUDOSUHVVXULQJ

%XW'DKOZDVPLQRURQWKHVFDOHWKDWKHZDQWHGWRH[SORUHVLPSOHHYHQ
WULYLDO7KHNQRWHTXDWLRQVZKLFKGHVFULEHG+LJK&RXQFLOUHSUHVHQWDWLRQZHUH
WUXQFDWHGIRUPVRIWKHLPPHQVHO\ZRUVHULGGOH RI7UDQWRU
$OORI7UDQWRURQHWHHPLQJZRUOGEDIIOLQJLQLWVVKHHUVL]HLWV
LQWULFDWHFRQQHFWLRQVPHDQLQJOHVVFRLQFLGHQFHVUDQGRPMX[WDSRVLWLRQV
VHQVLWLYHGHSHQGHQFLHV+LVHTXDWLRQVZHUHVWLOOWHUULEO\LQDGHTXDWHIRUWKLV
VKHOOZKLFKKRXVHGIRUW\ELOOLRQEXVWOLQJVRXOV
+RZPXFKZRUVHZDVWKH(PSLUH
3HRSOHFRQIURQWLQJEHZLOGHULQJFRPSOH[LW\WHQGWRILQGWKHLU
VDWXUDWLRQOHYHO7KH\PDVWHUWKHHDV\FRQQHFWLRQVORFDOOLQNVDQGUXOHVRI
WKXPE7KH\SXVKWKLVXQWLOWKH\PHHWDZDOORIFRPSOH[LW\WRRWKLFNDQGKLJK
DQGKDUGWRJUDVSWRFOLPE
7KHUHWKH\VWDOO*RVVLSFRQVXOWIUHWDQGILQDOO\JDPEOH
7KH(PSLUHRIWZHQW\ILYHPLOOLRQZRUOGVZDVDSUREOHPJUHDWHUHYHQWKDQ
XQGHUVWDQGLQJWKHZKROHUHVWRIWKHXQLYHUVHEHFDXVHDWOHDVWWKHJDOD[LHV
EH\RQGGLGQRWKDYHKXPDQVLQWKHP7KHEOLQGEOXQWPRWLRQVRIVWDUVDQGJDV
ZHUHFKLOGVSOD\FRPSDUHGWRWKHFRQYROXWHGWUDMHFWRULHVRISHRSOH
6RPHWLPHVLWZRUHKLPGRZQ7UDQWRUZDVEDGHQRXJKHLJKWKXQGUHG
6HFWRUVZLWKIRUW\ELOOLRQSHRSOH:KDWRIWKH(PSLUHZLWKWZHQW\ILYH
PLOOLRQSODQHWVRIDYHUDJHIRXUELOOLRQVRXOVDSLHFH"2QHKXQGUHGTXDGULOOLRQ
SHRSOH
:RUOGVLQWHUDFWHGWKURXJKWKHQDUURZQHFNVRIZRUPKROHVZKLFKDWOHDVW
VLPSOLILHGVRPHRIWKHHFRQRPLFLVVXHV%XWFXOWXUHWUDYHOHGDWWKHVSHHGRI
OLJKWWKURXJKZRUPKROHVLQIRUPDWLRQZLWKRXWPDVV]RRPLQJDFURVVWKH*DOD[\
LQGHVWDELOL]LQJZDYHV$IDUPHURQ2VNDWRRQNQHZWKDWDGXFK\KDGIDOOHQRQ
WKHRWKHUVLGHRIWKH*DODFWLFGLVNDIHZKRXUVDIWHUWKHEORRGRQWKHSDODFH
IORRUVWDUWHGWXUQLQJEURZQ
+RZWRLQFOXGHWKDW"
&OHDUO\WKH(PSLUHH[WHQGHGEH\RQGWKH&RPSOH[LW\+RUL]RQRIDQ\SHUVRQ
RUFRPSXWHU2QO\VHWVRIHTXDWLRQVZKLFKGLGQRWWU\WRNHHSWUDFNRIHYHU\
GHWDLOFRXOGZRUN
:KLFKPHDQWWKDWDQLQGLYLGXDO ZDVQRWKLQJRQWKHVFDOHRIHYHQWVZRUWK
VWXG\LQJ(YHQDPLOOLRQPDGHDERXWDVPXFKGLIIHUHQFHDVDVLQJOHUDLQGURS
IDOOLQJLQDODNH
6XGGHQO\+DULZDVHYHQPRUHJODGWKDWKHKDGNHSWSV\FKRKLVWRU\VHFUHW
+RZZRXOGSHRSOHUHDFWLIWKH\NQHZWKDWKHWKRXJKWWKH\GLGQWPDWWHU"
+DUL"+DUL"
+HKDGEHHQPXVLQJDJDLQ<XJRZDVVWLOOLQWKHRIILFH2KVRUU\MXVW
PXOOLQJRYHU
7KHGHSDUWPHQWPHHWLQJ
:KDW"
<RXFDOOHGLWIRUWRGD\
2KQR+HZDVKDOIZD\WKURXJKDFDOFXODWLRQ&DQWZHGHOD\"
7KHZKROHGHSDUWPHQW"7KH\UHZDLWLQJ
+DULGXWLIXOO\IROORZHG<XJRLQWRWKHDVVHPEO\URRP7KHWKUHH
WUDGLWLRQDOOHYHOVZHUHDOUHDG\ILOOHG&OHRQVSDWURQDJHKDGILOOHGRXWDQ
DOUHDG\KLJKUDQNHGGHSDUWPHQWXQWLOLWZDVSUREDEO\KRZFRXOGRQHPHDVXUH
VXFKWKLQJV"WKHEHVWRQ7UDQWRU,WKDGVSHFLDOLVWVLQP\ULDGGLVFLSOLQHV
HYHQDUHDVZKRVHYHU\GHILQLWLRQV+DULZDVDELWYDJXHDERXW
+DULWRRNKLVSRVLWLRQDWWKHKXERIWKHKLJKHVWOHYHODWWKHH[DFW
FHQWHURIWKHURRP0DWKLVWVOLNHGJHRPHWULHVZKLFKPLUURUHGUHDOLWLHVVRWKH
IXOOSURIHVVRUVVDWRQDURXQGUDLVHGSODWIRUPLQDLUFKDLUVZLWKDPSOHDUPV
)RUPLQJDODUJHUDQQXOXVDURXQGWKHPDIHZVWHSVORZHUZHUHWKH
DVVRFLDWHSURIHVVRUVWKRVHZLWKWHQXUHEXWVWLOODWWKHPLGGOHUDQNLQWKHLU
FDUHHUV7KH\KDGFRPIRUWDEOHFKDLUVWKRXJKZLWKRXWIXOOFRPSXWLQJDQGKROR
IXQFWLRQV
%HORZWKHPDOPRVWLQDSLWZHUHWKHXQWHQXUHGSURIHVVRUVRQVLPSOH

FKDLUVRIVWXUG\GHVLJQ7KHROGHVWVDWQHDUHVWWKHURRPVFHQWHU,QWKHLU
RXWHUUDQNVZHUHWKHLQVWUXFWRUVDQGDVVLVWDQWVRQSODLQEHQFKHVZLWKRXWDQ\
FRPSXWHUFDSDELOLWLHVZKDWHYHU<XJRUHVWHGWKHUHVFRZOLQJSODLQO\IHHOLQJ
RXWRISODFH
+DULKDGDOZD\VWKRXJKWLWZDVHLWKHUHQUDJLQJRUKLODULRXVGHSHQGLQJ
RQKLVPRRGWKDWRQHRIWKHPRVWSURGXFWLYHPHPEHUVRIWKHGHSDUWPHQW<XJR
VKRXOGKDYHVXFKORZVWDWXV7KLVZDVWKHWUXHSULFHRINHHSLQJSV\FKRKLVWRU\
VHFUHW7KHSDLQRIWKLVKHWULHGWRVRRWKHE\JLYLQJ<XJRDJRRGRIILFHDQG
RWKHUSHUNV<XJRVHHPHGWRFDUHOLWWOHIRUVWDWXVVLQFHKHKDGDOUHDG\
DVFHQGHGVRIDU$QGDOOZLWKRXWWKH&LYLO6HUYLFHH[DPVWRR
7RGD\+DULGHFLGHGWRPDNHDOLWWOHPLVFKLHI7KDQN\RXFROOHDJXHV
IRUDWWHQGLQJ:HKDYHPDQ\DGPLQLVWUDWLYHPDWWHUVWRHQJDJH<XJR"
$UXVWOH<XJRVH\HVZLGHQHGEXWKHVWRRGXSTXLFNO\DQGFOLPEHGXSWR
WKHVSHDNHUVSODWIRUP
+HDOZD\VKDGVRPHRQHHOVHFKDLUPHHWLQJVHYHQWKRXJKDVFKDLUPDQKH
KDGFDOOHGWKHPFKRVHQWKHKRXUIL[HGWKHDJHQGD+HNQHZWKDWVRPHUHJDUGHG
KLPDVDVWURQJSHUVRQDOLW\VLPSO\E\GLQWRINQRZLQJWKHUHVHDUFKDJHQGDVR
GHHSO\
7KDWZDVDFRPPRQHUURUPLVWDNLQJNQRZOHGJHIRUFRPPDQG+HKDGIRXQG
WKDWLIKHSUHVLGHGWKHUHZDVOLWWOHGLVVHQWIURPKLVRZQYLHZV7RJHWRSHQ
GLVFXVVLRQGHPDQGHGWKDWKHVLWEDFNDQGOLVWHQDQGWDNHQRWHVLQWHUYHQLQJ
RQO\DWNH\PRPHQWV
<HDUVDJR<XJRKDGZRQGHUHGZK\KHGLGWKLVDQG+DULZDYHGDZD\WKH
SUREOHP,PQRWDOHDGHUKHVDLG<XJRJDYHKLPDVWUDQJHORRNDVLIWR
VD\:KRGR\RXWKLQN\RXUHNLGGLQJ"
+DULVPLOHGWRKLPVHOI6RPHRIWKHIXOOSURIHVVRUVDURXQGKLPZHUH
PXWWHULQJFDVWLQJJODQFHV<XJRODXQFKHGLQWRWKHDJHQGDVSHDNLQJTXLFNO\LQ
DVWURQJFOHDUYRLFH
+DULVDWEDFNDQGZDWFKHGLUULWDWLRQZDVKRYHUVRPHRIKLVHVWHHPHG
FROOHDJXHV1RVHVZULQNOHGDW<XJRVEURDGDFFHQW2QHRIWKHPPRXWKHGWR
DQRWKHU'DKOLWHDQGZDVDQVZHUHG8SVWDUW
$ERXWWLPHWKH\JRWDELWRIWKHERRWDVKLVIDWKHUKDGRQFHWHUPHG
LW$QGIRU<XJRWRJHWDWDVWHRIUXQQLQJWKHGHSDUWPHQW
$IWHUDOOWKLV)LUVW0LQLVWHUEXVLQHVVFRXOGJHWZRUVH+HFRXOGQHHGD
UHSODFHPHQW


:HVKRXOGOHDYHVRRQ+DULVDLGVFULEEOLQJRQKLVQRWHSDG
:K\"7KHUHFHSWLRQGRHVQWVWDUWIRUDJHV6KHVPRRWKHGRXWKHUGUHVV
ZLWKJUHDWFDUHH\HVFULWLFDO
,ZDQWWRWDNHDZDONRQWKHZD\
7KHUHFHSWLRQLVLQ'DKYLWL6HFWRU
+XPRUPH
6KHSXOOHGRQWKHVKHDWKGUHVVZLWKVRPHHIIRUW,ZLVKWKLVZHUHQW
WKHVW\OH
:HDUVRPHWKLQJHOVHWKHQ
7KLVLV\RXUILUVWDSSHDUDQFHDWDQ,PSHULDODIIDLU<RXOOZDQWWR
ORRN\RXUEHVW
7UDQVODWLRQ\RXORRN\RXUEHVWDQGVWDQGQH[WWRPH
<RXUHMXVWZHDULQJWKDW6WUHHOLQJSURIHVVRULDOJDUE
$SSURSULDWHWRWKHRFFDVLRQ,ZDQWWRVKRZWKDW,PVWLOOMXVWD
SURIHVVRU
6KHZRUNHGRQWKHGUHVVVRPHPRUHDQGILQDOO\VDLG<RXNQRZVRPH
KXVEDQGVZRXOGHQMR\ZDWFKLQJWKHLUZLYHVGRWKLV
+DULORRNHGXSDVVKHZULJJOHGLQWRWKHODVWRIWKHFOLQJ\HQVHPEOHLQ
DPEHUDQGEOXH6XUHO\\RXGRQWZDQWWRJHWPHDOOH[FLWHGDQGWKHQKDYHWR

HQGXUHWKHUHFHSWLRQWKDWZD\
6KHVPLOHGLPSLVKO\7KDWVH[DFWO\ZKDW,ZDQW
+HORXQJHGEDFNLQKLVDLUFKDLUDQGVLJKHGWKHDWULFDOO\0DWKHPDWLFVLV
DILQHUPXVH/HVVGHPDQGLQJ
6KHWRVVHGDVKRHDWKLPPLVVLQJE\DSUHFLVHFHQWLPHWHU
+DULJULQQHG&DUHIXORUWKH6SHFLDOVZLOOUXVKWRGHIHQGPH
'RUVEHJDQKHUILQLVKLQJWRXFKHVDQGWKHQJODQFHGDWKLPSX]]OHG<RX
DUHHYHQPRUHGLVWUDFWHGWKDQXVXDO
$VDOZD\V,ILWP\UHVHDUFKLQWRWKHQRRNVDQGFUDQQLHVRIOLIH
7KHXVXDOSUREOHP":KDWVLPSRUWDQWLQKLVWRU\"
,GSUHIHUWRNQRZZKDWVQRW
,DJUHHWKDWWKHFXVWRPDU\PHJDKLVWRU\DSSURDFKHFRQRPLFVDQG
SROLWLFVDQGWKHUHVWLVQWHQRXJK
+DULORRNHGXSIURPKLVSDG7KHUHDUHVRPHKLVWRULDQVZKR WKLQNWKDW
WKHOLWWOHUXOHVRIDVRFLHW\KDYHWREHFRXQWHGWRXQGHUVWDQGWKHELJODZV
WKDWPDNHLWZRUN
,NQRZWKDWUHVHDUFK'RUVWZLVWHGKHUPRXWKGRXEWIXOO\6PDOOUXOHV
DQGELJODZV+RZDERXWVLPSOLI\LQJ"0D\EHWKHODZVDUHMXVWDOOWKHUXOHV
DGGHGXS"
2IFRXUVHQRW
([DPSOHVKHSHUVLVWHG
+HZDQWHGWRWKLQNEXWVKHZRXOGQRWEHSXWRII6KHSRNHGKLPLQWKH
ULEV([DPSOH
$OOULJKW+HUHVDUXOH:KHQHYHU\RXILQGVRPHWKLQJ\RXOLNHEX\D
OLIHWLPHVXSSO\EHFDXVHWKH\UH VXUHWRVWRSPDNLQJLW
7KDWVULGLFXORXV$MRNH
1RWPXFKRIDMRNHEXWLWVWUXH
:HOOGR\RXIROORZWKLVUXOH"
2IFRXUVH
+RZ"
5HPHPEHUWKHILUVWWLPH\RXORRNHGLQP\FORVHW"
6KHEOLQNHG+HJULQQHGUHFDOOLQJ6KHKDGEHHQVXEWO\VQRRSLQJDQG
VOLGDVLGHWKHODUJHEXWIHDWKHUOLJKWGRRU,QDUHFWDQJXODUJULGRIVKHOYHV
ZHUHFORWKHVVRUWHGE\W\SHWKHQFRORU'RUVKDGJDVSHG6L[EOXHVXLWV$W
OHDVWDGR]HQSDGVKRHVDOOEODFN$QGVKLUWVRIIZKLWHROLYHDIHZUHG
$W OHDVWILIW\6RPDQ\DOODOLNH
$QGH[DFWO\ZKDW,OLNHKHKDGVDLG7KLVDOVRVROYHVWKHSUREOHPRI
FKRRVLQJZKDWWRZHDULQWKHPRUQLQJ,MXVWUHDFKLQDWUDQGRP
,WKRXJKW\RXZRUHWKHVDPHFORWKHVGD\DIWHUGD\
+HKDGUDLVHGKLVH\HEURZVDJKDVW7KHVDPH"<RXPHDQGLUW\FORWKHV"
:HOOZKHQWKH\GLGQWFKDQJH
,FKDQJHHYHU\GD\+HFKXFNOHGUHPHPEHULQJDQGVDLG7KHQ,
XVXDOO\SXWRQWKHVDPHRXWILWWKHQH[WGD\EHFDXVH,OLNHLW$QG\RXZLOO
QRWILQGDQ\RIWKRVHDYDLODEOHLQWKHVWRUHVDJDLQ
,OOVD\VKHVDLGILQJHULQJWKHZHDYHRQKLVVKLUWV7KHVHDUHDW
OHDVWIRXUVHDVRQVRXWRIIDVKLRQ
6HH"7KHUXOHZRUNV
7RPHDZHHNLVWZHQW\RQHFORWKLQJRSSRUWXQLWLHV7R\RXLWVD
FKRUH
<RXUHLJQRULQJWKHUXOH
+RZORQJGLG\RXGUHVVWKDWZD\"
6LQFH,QRWLFHGKRZPXFKWLPH,VSHQWPDNLQJGHFLVLRQVDERXWZKDWWR
ZHDU$QGWKDWZKDW,UHDOO\OLNHGWRZHDUZDVQWLQWKHVWRUHVYHU\RIWHQ,
JHQHUDOL]HGDVROXWLRQWRERWK SUREOHPV
<RXUHDPD]LQJ
,PVLPSO\V\VWHPDWLF
<RXUHREVHVVLRQDO

<RXUHMXGJLQJQRWGLDJQRVLQJ
<RXUHDGHDU&UD]\EXWDGHDU0D\EHWKH\JRWRJHWKHU
,VWKDWDUXOHWRR"
6KHNLVVHGKLP<HVSURIHVVRU

7KHLQHYLWDEOH6SHFLDOVFUHHQIRUPHGDERXWWKHPWKHLQVWDQWWKH\OHIW
WKHLUDSDUWPHQW%\QRZKHDQG'RUVKDGWUDLQHGWKH6SHFLDOVWRDWOHDVWDOORZ
WKHPWKHSULYDF\RIDVLQJOHZHGJHLQWKHGURSWXEH
7KHJUDYGURSZDVLQIDFWQRPLUDFOHRIJUDYLWDWLRQDOSK\VLFVLWFDPH
IURPDGYDQFHGHOHFWURPDJQHWLFV(DFKLQVWDQWRYHUDWKRXVDQGHOHFWURVWDWLF
ILHOGVVXSSRUWHGKLPWKURXJKLQWULFDWHFKDUJHLPEDODQFHV+HFRXOGIHHOWKHP
SOD\LQJLQKLVKDLUVPDOOWZLQJHVVNDWLQJDFURVVKLVVNLQDVWKHILHOG
FRQILJXUDWLRQVKDQGHGKLPRIIWRHDFKRWKHUHDFKORZHULQJKLVPDVV
LQILQLWHVLPDOO\GRZQWKHFKXWH
:KHQWKH\OHIWWKHZHGJHWKLUWHHQIORRUVKLJKHU'RUVSDVVHGDFKDUJH
SURJUDPPHGFRPEWKURXJKKHUKDLU,WFUDFNOHGDQGVQDSSHGREHGLHQWO\LQWRLWV
VW\OHVPDUWKDLU
7KH\HQWHUHGDEURDGSDVVDJHZD\OLQHGZLWKVKRSV+DULOLNHGEHLQJLQD
SODFHZKHUHKHFRXOGVHHIDUWKHUWKDQDKXQGUHGPHWHUV
0RYHPHQWZDVTXLFNEHFDXVHWKHUHZDVQRFURVVWUDIILFIRUDQ\
FRQYH\DQFH$VOLGHZDONUDQDWWKHFHQWHUJRLQJWKHLUZD\EXWWKH\VWD\HG
QHDUWKHVKRSZLQGRZVDQGEURZVHGDVWKH\DPEOHG
7RPRYHODWHUDOO\RQHVLPSO\ZHQWXSRUGRZQDOHYHOE\HOHYDWRURU
HVFDODWRUWKHQVWHSSHGRQDPRYLQJEHOWRUHQWHUHGDURERSRG,QWKH
FRUULGRUVWRERWKVLGHVWKHVOLGHZD\UDQRSSRVLWH:LWKQROHIWRUULJKW
WXUQVWUDIILFPLVKDSVZHUHUDUH0RVWSHRSOHZDONHGZKHUHYHUZDVSUDFWLFDO
IRUWKHH[HUFLVHDQGIRUWKHLQGHILQDEOHH[KLODUDWLRQRI7UDQWRULWVHOI
3HRSOHZKRFDPHKHUHZDQWHGWKHFRQVWDQWVWLPXODWLRQRIKXPDQLW\LGHDVDQG
FXOWXUHVUXEELQJDJDLQVWHDFKRWKHULQSURGXFWLYHIULFWLRQ+DULZDVQRW
LPPXQHWRLWWKRXJKLWORVWVRPHVDYRULIRYHUGRQH
3HRSOHLQWKHVTXDUHVDQGSDUNKH[DJRQVZRUHIDVKLRQVIURPWKHWZHQW\
ILYHPLOOLRQZRUOGV+HVDZVHOIVKDSLQJOHDWKHUVIURPDQLPDOVZKRFRXOGQRW
SRVVLEO\KDYHUHVHPEOHGWKHP\WKLFDOKRUVH$PDQVDXQWHUHGE\ZLWKOHJJLQJV
VOLWWRKLVKLSH[SRVLQJEOXHVWULSHGVNLQWKDWEXQFKHGDQGVOLGLQD
SHUSHWXDOVKRZ$QDQJXODUZRPDQVSRUWHGDERGLFHRIRSHQPRXWKHGIDFHVHDFK
VZDOORZLQJLYRU\QLSSOHG EUHDVWVKHKDGWRORRNWZLFHWREHOLHYHWKH\ZHUHQW
UHDO*LUOVLQRXWUDJHRXVO\FXWSRPSYHVWPHQWVSDUDGHGQRLVLO\$FKLOGRU
ZDVLWDQRUPDOLQKDELWDQWRIDVWURQJJUDYZRUOG"SOD\HGDSKRWR]LWKHU
VWUXPPLQJLWVODVHUEHDPV
7KH6SHFLDOVIDQQHGRXWDQGWKHLUFDSWDLQFDPHWURWWLQJRYHU:HFDQW
FRYHU\RXZHOOKHUH$FDGHPLFLDQVLU
7KHVHDUHRUGLQDU\SHRSOHQRWDVVDVVLQV7KH\KDGQRZD\RISUHGLFWLQJ
WKDW,GEHKHUH
(PSHURUVD\VFRYHU\RXZHFRYHU\RX
'RUVUDSSHGEDFNVPDUWO\,OOKDQGOHWKHFORVHLQWKUHDWV,PDEOH,
DVVXUH\RX
7KHFDSWDLQVPRXWKWZLVWHGVRXUO\EXWKHJDYHKLPVHOIDPRPHQWEHIRUH
VD\LQJ,KHDUGVRPHWKLQJDERXWWKDW6WLOO
+DYH\RXUPHQXVHWKHLUUDQJHGHWHFWRUVYHUWLFDOO\$VKDSHGFKDUJHRQ
WKH OD\HUVEHORZDQGDERYHFRXOGFDWFKXV
8K\HVP+HWURWWHGRII
7KH\SDVVHGE\WKHMLJVDZZDOOVRIWKH)DUKDKDO4XDGUDQW$ZHDOWK\
DQFLHQWKDGEHFRPHREVHVVHGZLWKWKHQRWLRQWKDWDVORQJDVKLVHVWDWHZDV
XQILQLVKHGKHZRXOGQRWKLPVHOIILQLVKWKDWLVGLH:KHQHYHUDQDGGLWLRQ
QHDUHGFRPSOHWLRQKHRUGHUHGXSPRUH(YHQWXDOO\WKHWDQJOHRIURRPV
UXQZD\VYDXOWVEULGJHVDQGJDUGHQVEHFDPHDQLQFRKHUHQWPRWOH\VWXFNLQWR
HYHU\FUDQQ\RIWKHRULJLQDOUDWKHUVLPSOHGHVLJQ:KHQ)DUKDKDOHYHQWXDOO\

GLGILQLVKDWRZHUKDOIEXLOWELFNHULQJE\KLVKHLUVDQGODZ\HUO\
SOXQGHULQJRIWKHHVWDWHIRUWKHLUIHHVEURXJKWWKHTXDGUDQWORZ1RZLWZDVD
IHWLGZDUUHQYLVLWHGRQO\E\WKHSUHGDWRU\DQGWKHXQZDU\
7KH6SHFLDOVSXOOHGLQWLJKWDQGWKHFDSWDLQXUJHGWKHPWRJHWLQWRD
URER+DULJUXGJLQJO\DJUHHG'RUVKDGWKHFRQFHQWUDWHGORRNWKDWPHDQWVKH
ZDVZRUULHG7KH\VSHGLQVLOHQFHWKURXJKVKDGRZ\WXQQHOV7KHUHZHUHWZR
VWRSVDQGLQWKHEULOOLDQWO\OLWVWDWLRQV+DULVDZUDWVVFXUU\LQJIRUVKHOWHU
DVWKHSRGHDVHGWRDKDOW+HVLOHQWO\SRLQWHGWKHPRXWWR'RUV
%UUUUVKHVDLG2QHZRXOGWKLQNWKDWDWWKHYHU\FHQWHURIWKH
(PSLUHZHFRXOGHOLPLQDWHSHVWV
1RWWKHVHGD\V+DULVDLGWKRXJKKHVXVSHFWHGWKHUDWVKDGWKULYHG
HYHQDWWKHKHLJKWRI(PSLUH5RGHQWVFDUHGOLWWOHIRUJUDQGHXU
,VXSSRVHWKH\YHEHHQRXUHWHUQDOFRPSDQLRQV'RUVVDLGVRPEHUO\1R
ZRUOGLVIUHHRIWKHP
,QWKHVHWXQQHOVWKHORQJGLVWDQFHSRGVIO\VRIDVWWKDWRFFDVLRQDOO\
UDWVJHWVXFNHGLQWRWKHDLUEUHDWKLQJHQJLQHV
'RUVVDLGXQHDVLO\7KDWFRXOGGDPDJHWKHHQJLQHVHYHQFUDVKWKH
SRGV
1RKROLGD\IRUWKHUDWHLWKHU
7KH\SDVVHGWKURXJKD6HFWRUZKRVHFLWL]HQVDEKRUUHGVXQOLJKWHYHQWKH
ZDQVSODVKHVZKLFKFDPHGRZQWKURXJKWKHOD\HUVE\UDGLDQFHWXEHV
+LVWRULFDOO\'RUVWROGKLPWKLVKDGDULVHQIURPIHDUVRILWVXOWUDYLROHW
FRPSRQHQWEXWWKHSKRELDVHHPHGWRJRGHHSHUWKDQDPHUHKHDOWKLVVXH
7KHLUSRGVORZHGDQGSDVVHGDORQJDKLJKUDPSDERYHRSHQVZDUPLQJ
YDXOWV1RQDWXUDOOLJKWVKDIWVEURXJKWLOOXPLQDWLRQRQO\DUWLILFLDOSKRVSKRU
JORZV7KH6HFWRUZDVRIILFLDOO\QDPHG.DODQVWURPRQLDEXWLWVFLWL]HQVZHUH
NQRZQZRUOGZLGHDV6SRRNV7KH\VHOGRPWUDYHOHGDQGWKHLUEOHDFKHGIDFHV
VWRRGRXWLQFURZGV*D]LQJGRZQDWWKHPWKH\ORRNHGWR+DULOLNHVZDUPVRI
JUXEVIHHGLQJRQVKDGRZ\GHFD\
7KH,PSHULDO=RQDO5HFHSWLRQZDVLQVLGHDGRPHLQWKH-XOLHHQ6HFWRU+H
DQG'RUVHQWHUHGZLWKWKH6SHFLDOVZKRWKHQJDYHZD\WRILYHPHQDQGZRPHQ
ZHDULQJXWWHUO\LQFRQVSLFXRXVEXVLQHVVGUHVV7KHVHQRGGHGWR+DULDQGWKHQ
DSSHDUHGWRIRUJHWKLPPRYLQJGRZQDEURDGUDPSZD\DQGFKDWWLQJZLWKHDFK
RWKHU
$ZRPDQDWWKHJUDQGGRRUZD\PDGHWRRPXFKRIKLVHQWUDQFH0XVLF
GHVFHQGHGDURXQGKLPLQDVRXQGFORXGDQDUUDQJHPHQWRIWKH6WUHHOLQJ$QWKHP
EOHQGHGVXEWO\ZLWKWKH+HOLFRQ6\PSKRQ\7KLVDWWUDFWHGDWWHQWLRQIURPWKH
FURZGVEHORZH[DFWO\ZKDWKHGLGQRWZDQW$SURWRFROWHDPVPRRWKO\WRRNWKH
KDQGRIIIURPWKHGRRUDWWHQGDQWVHVFRUWLQJKLPDQG'RUVWRDEDOFRQ\+HZDV
KDSS\IRUWKHFKDQFHWR ORRNDWWKHYLHZ
)URPWKHSHDNRIWKHGRPHWKHYLVWDVZHUHVWDUWOLQJ6SLUDOVGHVFHQGHG
WRSODWHDXVVRGLVWDQWKHFRXOGEDUHO\PDNHRXWDIRUHVWDQGSDWKV7KH
UDPSDUWVDQGJDUGHQVWKHUHKDGGUDZQPLOOHQQLDRIVSHFWDWRUVLQFOXGLQJD
JXLGHWROGKLPVXLFLGHVDOOFDUHIXOO\WDEXODWHGWKURXJKPDQ\
FHQWXULHV
1RZWKDWWKHQXPEHUDSSURDFKHGDPLOOLRQWKHJXLGHZHQWRQZLWKUHOLVK
DWWHPSWVRFFXUUHGQHDUO\HYHU\KRXU$PDQKDGEHHQVWRSSHGMXVWVKRUWRI
OHDSLQJWKDWYHU\GD\ZHDULQJDJDXG\KRORVXLWSURJUDPPHGWRIODVK,0$'(7+(
0,//,21DIWHUKHVWUXFN
7KH\VHHPVRHDJHUWKHJXLGHFRQFOXGHGZLWKZKDWVHHPHGWR+DULD
NLQGRISULGH
:HOO+DULUHPDUNHGWU\LQJWRJHWULGRIWKHPDQVXLFLGHLVWKH
PRVWVLQFHUHIRUPRIVHOIFULWLFLVP
7KHJXLGHQRGGHGZLVHO\XQSHUWXUEHGDQGDGGHG$OVRLWGRHVJLYH
WKHPVRPHWKLQJWRFRQWULEXWHWR7KDWPXVWEHDFRQVRODWLRQ
7KHSURWRFROWHDPKDGDOOSODQQHGRXWIRUKLPDQRUELWWKURXJKWKH
YDVWUHFHSWLRQ0HHW;JUHHW<ERZWR=

6D\QRWKLQJDERXWWKH-XGHQD=RQHFULVLVDQDLGHLQVLVWHG7KLVZDV
HDV\VLQFHKHKDGQHYHUKHDUGRILW
7KHDSSHWLWHHQKDQFHUVZHUHH[FHOOHQWWKHIRRGWKDWIROORZHGHYHQ
EHWWHU RUVHHPHGVRZKLFKZDVWKHSRLQWRIWKHHQKDQFHUV DQGKHWRRND
VWLPRIIHUHGE\DJRUJHRXVZRPDQ
<RXFRXOGJHWWKURXJKWKLVHQWLUHHYHQLQJMXVWQRGGLQJDQGVPLOLQJDQG
DJUHHLQJZLWKSHRSOH'RUVVDLGDIWHUWKHILUVWKDOIKRXU
,WVWHPSWLQJWRGRMXVWWKDW+DULZKLVSHUHGDVWKH\IROORZHGWKH
SURWRFROOLHXWHQDQWWRWKHQH[WEXQFKRI=RQDOILJXUHV7KHDLULQWKHYDVW
IRJJ\GRPHZDVIUHLJKWHGZLWKQHJRWLDWLRQVDGYDQFHGDQGEDUJDLQVVWUXFN
7KH(PSHURUDUULYHGZLWKIXOOSRPS+HZRXOGSD\WKHWUDGLWLRQDOKRXUV
WULEXWHWKHQE\DQFLHQWFXVWRPOHDYHEHIRUHDQ\RQHHOVHZDVSHUPLWWHGWR
+DULZRQGHUHGLIWKH(PSHURUHYHUZDQWHGWROLQJHULQWKHPLGGOHRIDQ
LQWHUHVWLQJFRQYHUVDWLRQ&OHRQZDVZHOOVFKRROHGLQHPSHURUKRRGWKRXJKVR
WKHLVVXHSUREDEO\QHYHUFDPHXS&OHRQJUHHWHG+DULHIIXVLYHO\NLVVHG'RUV
KDQGDQGWKHQVHHPHGWRORVHLQWHUHVWLQWKHPZLWKLQWZRPLQXWHVPRYLQJRQ
ZLWKKLVHQWRXUDJHWRDQRWKHUFLUFOHRIH[SHFWDQWIDFHV
+DULVQH[WJURXSSURYHGGLIIHUHQW1RWWKHXVXDOPL[RIGLSORPDWV
DULVWRVDQGDQ[LRXVEURZQFODGDVVLVWDQWVKLVOLHXWHQDQWWROGKLPEXWKLJK
ILJXUHV3HRSOHZLWKSXQFKWKHPDQZKLVSHUHG
$ODUJHPXVFXODUPDQZDVKROGLQJIRUWKDWWKHFHQWHURIDFLUFOHD
GR]HQIDFHVUDSWO\IROORZLQJKLVHYHU\ZRUG7KHSURWRFROOLHXWHQDQWWULHGWR
ZKLVNWKHPSDVWEXW+DULVWRSSHGKHU7KDWV
%HWDQ/DPXUNVLU
.QRZVKRZWRKROGDFURZG
,QGHHGVLU:RXOG\RXOLNHDIRUPDOLQWURGXFWLRQ"
1RMXVWOHWPHOLVWHQ
,WZDVDOZD\VDJRRGLGHDWRVL]HXSDQRSSRQHQWEHIRUHKHNQHZKHZDV
EHLQJZDWFKHG+DULVIDWKHUKDGWDXJKWKLPWKDWWULFNMXVWEHIRUHKLVILUVW
PDWKHOHWLFFRPSHWLWLRQ6XFKWHFKQLTXHVKDGQRWPDQDJHGWRVDYHKLVIDWKHU
EXWWKH\ZRUNHGLQWKHPLOGHUJURYHVRIDFDGHPH
%ODFNKDLULQYDGHGKLVEURDGEURZOLNHDSLQFHUDWWDFNWZRSRLQWHG
ZHGJHVUHDFKLQJGRZQWRQHDUO\WKHHQGRIKLVH\HEURZV+LVKRRGHGH\HVZHUH
ZLGHO\VSDFHGDQGEOD]HGLQWHQWO\IURPDULJJLQJRIPLUWKZULQNOHV$VOHQGHU
QRVHVHHPHGWRSRLQWWRKLVSURXGHVWIHDWXUHDPRXWKDVVHPEOHGIURPYDU\LQJ
SDUWV7KHORZHUOLSFXUOHGLQIXOOLPSXGHQWKXPRU7KHXSSHUWKLQDQG
PXVFXODUFXUOHGGRZQZDUGLQDFXUYHWKDWYHUJHGRQDVQHHU$YLHZHUZRXOG
NQRZWKHXSSHUOLSFRXOGRYHUUXOHWKHORZHUDWDQ\PRPHQWVKLIWLQJPRRG
DEUXSWO\DGLVTXLHWLQJHIIHFWZKLFKFRXOGQRWKDYHEHHQEHWWHUHGLIKHKDG
GHVLJQHGLWKLPVHOI
+DULUHDOL]HGTXLFNO\WKDWRIFRXUVH/DPXUNKDG
/DPXUNZDVGLVFXVVLQJVRPHGHWDLORILQWHU=RQDOWUDGHLQWKH2ULRQ
VSLUDODUPDKRWLVVXHEHIRUHWKH+LJK&RXQFLODWWKHPRPHQW+DULFDUHG
QRWKLQJDERXWWUDGHH[FHSWDVDYDULDEOHLQVWRFKDVWLFHTXDWLRQVVRKH
VLPSO\ZDWFKHGWKHPDQVPDQQHU
7RXQGHUOLQHDSRLQW/DPXUNZRXOGUDLVHKLVKDQGVRYHUKLVKHDGILQJHUV
RSHQYRLFHULVLQJ7KHQKLVSRLQWPDGHKLVYRLFHHYHQHGRXWDQGKHORZHUHG
WKHPWRFKHVWKHLJKWKHOGSUHFLVHO\VLGHE\VLGH$VKLVZHOOPRGXODWHGYRLFH
EHFDPHGHHSHUDQGPRUHUHIOHFWLYHKHPRYHGWKHKDQGVDSDUW7KHQYRLFH
ULVLQJDJDLQKLVKDQGVVRDUHGWRKHDGOHYHODQGZLQGPLOOHGRQHDURXQGWKH
RWKHUWKHVXEMHFWQRZFRPSOH[WKHOLVWHQHUWKHUHE\FRPPDQGHGWRSD\FORVH
DWWHQWLRQ
+HNHSWFORVHH\HFRQWDFWZLWKWKHZKROHDXGLHQFHDSLHUFLQJJD]H
VZHHSLQJWKHFLUFOH$ODVWSRLQWDTXLFNWRXFKRIKXPRUJULQIODVKLQJVXUH
RIKLPVHOIDSDXVHIRUWKHQH[WTXHVWLRQ
+HILQLVKHGKLVSRLQWZLWKDQGIRUVRPHRIXV3D[,PSHULXPORRNV
PRUHOLNH7D[,PSHULXPHK"7KHQKHVDZ+DUL$TXLFNIXUURZLQJRIKLV

EURZWKHQ$FDGHPLFLDQ6HOGRQ:HOFRPH,GEHHQZRQGHULQJZKHQ,ZDVJRLQJ
WRJHWWRPHHW\RX
'RQWOHWPHLQWHUUXSW\RXUDKOHFWXUH
7KLVSURYRNHGVRPHWLWWHUVDQG+DULVDZWKDWWRDFFXVHDPHPEHURIWKH
+LJK&RXQFLORISRQWLILFDWLQJZDVDPLOGVRFLDOMDE,IRXQGLWIDVFLQDWLQJ
3UHWW\KXPGUXPVWXII,PDIUDLGFRPSDUHGWR\RXPDWKLVWV/DPXUN
VDLGFRUGLDOO\
,DPDIUDLGP\PDWKHPDWLFV LVHYHQPRUHGU\WKDQ=RQDOWUDGH
0RUHWLWWHUVWKRXJKWKLVWLPH+DULFRXOGQRWTXLWHVHHZK\
,MXVWWU\WRVHSDUDWHRXWWKHIDFWLRQV/DPXUNVDLGJHQLDOO\3HRSOH
WUHDWPRQH\OLNHLWLVDUHOLJLRQ
7KLVJDLQHGKLPVRPHDJUHHLQJODXJKWHU+DULVDLG)RUWXQDWHO\WKHUH
DUHQRVHFWVLQJHRPHWU\
:HUHMXVWWU\LQJWRJHWWKHEHVWGHDOIRUWKHZKROH(PSLUH
$FDGHPLFLDQ
7KHEHVWLVWKHHQHP\RIWKHJRRG,GLPDJLQH
,VXSSRVHWKHQ\RXOOEHDSSO\LQJPDWKHPDWLFDOORJLFWRRXUSUREOHPV
RQWKH&RXQFLO"/DPXUNVYRLFHUHPDLQHGIULHQGO\EXWKLVH\HVWRRNRQD
YHLOHGFKDUDFWHU$VVXPLQJ\RXJDLQDPLQLVWHUVKLS"
$ODVVRIDUDVWKHODZVRIPDWKHPDWLFVDUHVKDUSDQGFHUWDLQWKH\GR
QRWUHIHUWRUHDOLW\6RIDUDVWKH\UHIHUWRUHDOLW\WKH\DUHQRWFHUWDLQ
/DPXUNJODQFHGDWWKHFURZGZKLFKKDGJURZQFRQVLGHUDEO\'RUVJUDVSHG
+DULVKDQGDQGKHUHDOL]HGIURPKHUVTXHH]HWKDWWKLVKDGVRPHKRZWXUQHGLQWR
VRPHWKLQJLPSRUWDQW+HFRXOGQRWVHHZK\EXWWKHUHZDVQRWLPHWRVL]HXS
WKHVLWXDWLRQ
/DPXUNVDLG7KHQWKLVSV\FKRKLVWRU\WKLQJ,KHDUDERXWLWVQRW
XVHIXO"
1RWWR\RXVLU+DULVDLG
/DPXUNVH\HVQDUURZHGEXWKLVDIIDEOHJULQUHPDLQHG7RRWRXJKIRU
XV"
1RWUHDG\IRUXVH,PDIUDLG,GRQWKDYHWKHORJLFRILW\HW
/DPXUNFKXFNOHGEHDPHGDWWKHVWLOOJURZLQJFURZGDQGVDLGMRYLDOO\
$ORJLFDOWKLQNHUZKDWDUHIUHVKLQJFRQWUDVWZLWKWKHUHDOZRUOG
*HQHUDOODXJKWHU+DULWULHGWRWKLQNRIVRPHWKLQJWRVD\+HVDZRQHRI
KLVERG\JXDUGVEORFNDPDQQHDUE\LQVSHFWVRPHWKLQJLQWKHPDQVVXLWWKHQ
OHWKLPJR
<VHH$FDGHPLFLDQRQWKH+LJK&RXQFLOZHFDQWEHVSHQGLQJRXUWLPH
RQWKHRU\/DPXUNSDXVHGIRUHIIHFWDVWKRXJKPDNLQJDFDPSDLJQVSHHFK
:HYHJRWWREHMXVWDQGVRPHWLPHVIRONVZHYHJRWWREHKDUG
+DULUDLVHGDQH\HEURZ0\IDWKHUXVHGWRVD\,WVDKDUGPDQZKRV
RQO\MXVWDQGDVDGPDQZKRVRQO\ZLVH
$IHZRRRKVLQWKHFURZGWROGKLPKHKDGVFRUHGDKLW/DPXUNVH\HV
FRQILUPHGWKHFXW
:HOOZHGRWU\RQWKH&RXQFLOZHGR1RGRXEWZHFDQXVHVRPHKHOS
IURPWKHOHDUQHGTXDUWHUVRIWKH(PSLUH,//KDYHWRUHDGRQHRI\RXUERRNV
$FDGHPLFLDQ+HVKRWDORRNZLWK UDLVHGH\HEURZVDWWKHFURZG$VVXPLQJ,
FDQ
+DULVKUXJJHG,ZLOOVHQG\RXP\PRQRJUDSKRQWUDQVILQLWHJHRPHWULF
FDOFXOXV
,PSUHVVLYHWLWOH/DPXUNVDLGH\HVSOD\LQJWRWKHDXGLHQFH
,WVWKHVDPHZLWKERRNVDVZLWKPHQDYHU\VPDOOQXPEHUSOD\JUHDW
SDUWVWKHUHVWDUHORVWLQWKHPXOWLWXGH
$QGZKLFKZRXOG\RXUDWKHUEH"/DPXUNVKRWEDFN
$PRQJWKHPXOWLWXGHV$WOHDVW,ZRXOGQWKDYHWRDWWHQGVRPDQ\
UHFHSWLRQV
7KLVJRWDELJODXJKVXUSULVLQJ+DUL/DPXUNVDLG:HOO,PVXUHWKH
(PSHURUZRQWWLUH\RXRXWZLWKWRRPXFKVRFLDOL]LQJ%XW\RXOOJHWLQYLWHG

HYHU\ZKHUH<RXYHJRWDVKDUSWRQJXHRQ\RX$FDGHPLFLDQ
0\IDWKHUKDGDQRWKHUVD\LQJWRR:LWLVOLNHDUD]RU5D]RUVDUH
PRUHOLNHO\WRFXWWKRVHZKRXVHWKHPZKHQWKH\YHORVWWKHLUHGJH
+LVIDWKHUKDGDOVRWROGKLPWKDWLQDSXEOLFWUDGHRIEDUEVWKHRQH
ZKRORVWWHPSHUILUVWORVWWKHH[FKDQJH+HKDGQRWUHFDOOHGWKDWXQWLOWKLV
LQVWDQW+DULUHPHPEHUHGWRRODWHWKDW/DPXUNZDVNQRZQIRUKLVKXPRULQ+LJK
&RXQFLOPHHWLQJV3UREDEO\VFULSWHGIRUKLPFHUWDLQO\KHGLVSOD\HGQRQHKHUH
$TXLFNWLJKWHQLQJRIWKHFKHHNVVSUHDGLQWRDEORRGOHVVZKLWHOLQHRI
OLS/DPXUNVIHDWXUHVWZLVWHGLQWRDQH[SUHVVLRQRIGLVWDVWHQRWDORQJZD\
WRJRIRUPRVWRIWKHPDQGKHJDYHDQXJO\ZHWODXJK
7KHFURZGVWRRGDEVROXWHO\VLOHQW6RPHWKLQJKDGKDSSHQHG
$KWKHUHDUHRWKHUSHRSOHZKRZRXOGOLNHWRPHHWWKH$FDGHPLFLDQ
+DULVOLHXWHQDQWVDLGVOLGLQJQHDWO\LQWRWKHJURZLQJDZNZDUGVLOHQFH
+DULVKRRNKDQGVPXUPXUHGPHDQLQJOHVVSOHDVDQWULHVDQGOHWKLPVHOIEH
ZKLVNHGDZD\


+HKDGDQRWKHUVWLPWRFDOPKLPVHOI6RPHKRZKHZDVPRUHMLWWHU\
DIWHUZDUGWKDQGXULQJWKHVRFLDOFROOLVLRQ/DPXUNKDGJLYHQ+DULDFROG
DQJU\VWDUHDVWKH\SDUWHG
,OONHHSWUDFNRIKLP'RUVVDLG<RXMXVWHQMR\\RXUIDPH
7R+DULWKLVZDVDIODWLPSRVVLELOLW\EXWKHWULHG6HOGRPGLGRQHVHH
VXFKDYDULHW\RISHRSOHDQGKHFDOPHGKLPVHOIE\ODSVLQJLQWRDKDELWXDO
UROHSROLWHREVHUYHU,WZDVQRWDVWKRXJKWKHXVXDOVRFLDOFKLWFKDWGHPDQGHG
PXFKFRQFHQWUDWLRQ$ZDUPVPLOHZRXOGGRPRVWRIWKHZRUNIRUKLPKHUH
7KHSDUW\ZDVDPLFURFRVPRI7UDQWRULDQVRFLHW\,QVSDUHPRPHQWV+DUL
ZDWFKHGWKHVRFLDORUGHUVLQWHUDFW
&OHRQVJUDQGIDWKHUKDGUHLQVWDWHGPDQ\5XHOOLDQWUDGLWLRQVDQGRQHRI
WKRVHFXVWRPVUHTXLUHGWKDWPHPEHUVRIDOOILYHFODVVHVEHSUHVHQWDWDQ\
JUDQG,PSHULDOIXQFWLRQ&OHRQVHHPHGHVSHFLDOO\NHHQRQWKLVSUDFWLFHDVLI
LWZRXOGUDLVHKLVSRSXODULW\DPRQJWKHPDVVHV+DULNHSWKLVRZQGRXEWV
SULYDWH
)LUVWDQGREYLRXVFDPHWKHJHQWU\WKHLQKHULWHGDULVWRFUDF\&OHRQ
KLPVHOIVWRRGDWWKHDSH[RIDS\UDPLGRIUDQNWKDWGHVFHQGHGIURPWKH
,PSHULXPWRPLJKW\4XDGUDQW'XNHVDQG6SLUDO$UP3ULQFHVSDVW/LIH3HHUVDOO
WKHZD\GRZQWRWKHORFDOEDURQV+DULXVHGWRNQRZEDFNRQ+HOLFRQ
:RUNLQJLQWKHILHOGVKHKDGVHHQWKHPSRPSRXVO\VFXGGLQJRYHUKHDG
(DFKJRYHUQHGDGRPDLQQRODUJHUWKDQWKH\FRXOGFURVVE\IOLWWHULQDGD\7R
DPHPEHURIWKHJHQWU\OLIHZDVEXV\ZLWKWKH*UHDW*DPHDFHDVHOHVV
FDPSDLJQWRDGYDQFHWKHIRUWXQHVRIRQHVQREOHKRXVHDUUDQJLQJJUHDWHU
VWDWXVIRU\RXUIDPLO\OLQHWKURXJKSROLWLFDODOOLDQFHVRUPDUULDJHVIRU\RXU
PDQ\FKLOGUHQ
+DULVQRUWHGLQGHULVLRQPDVNLQJLWE\WDNLQJDQRWKHUVWLP+HKDG
VWXGLHGDQWKURSRORJLFDOUHSRUWVIURPDWKRXVDQG)DOOHQ:RUOGVWKRVHWKDWKDG
GHYROYHGLQLVRODWLRQUHYHUWLQJWRFUXGHUZD\VRIOLIH+HNQHZWKLVS\UDPLG
VKDSHGRUGHUWREHDPRQJWKHPRVWQDWXUDODQGHQGXULQJKXPDQVRFLDOSDWWHUQV
(YHQZKHQDSODQHWZDVUHGXFHGWRVLPSOHDJULFXOWXUHDQGKDQGIRUJHGPHWDOV
WKHVDPHWULDQJXODUIRUPDWHQGXUHG3HRSOHOLNHGUDQNDQGRUGHU
7KHHQGOHVVFRPSHWLWLRQRIJHQWU\IDPLOLHVKDGEHHQWKHILUVWDQG
HDVLHVWSV\FKRKLVWRURORJLFDOV\VWHP+DULHYHUPRGHOHG+HKDGILUVWFRPELQHG
EDVLFJDPHWKHRU\DQGNLQVHOHFWLRQ7KHQLQDPRPHQWRILQVSLUDWLRQKH
LQVHUWHGWKHPLQWRWKHHTXDWLRQVWKDWGHVFULEHGVDQGJUDLQVVNLGGLQJGRZQWKH
VORSHVRIDGXQH7KDWFRUUHFWO\GHVFULEHGVXGGHQWUDQVLWLRQVVRFLDO
VOLSSDJHV
6RLWZDVZLWKWKHULVHDQGIDOORIQREOHIDPLO\OLQHV/RQJVPRRWK
HUDVWKHQDEUXSWVKLIWV

+HZDWFKHGWKHFURZGSLFNLQJRXWWKRVHLQWKHVHFRQGDULVWRFUDF\
VXSSRVHGO\HTXDOWRWKHILUVWWKHPHULWRFUDF\
$VGHSDUWPHQWFKDLUPDQDWDPDMRU,PSHULDOXQLYHUVLW\+DULZDVKLPVHOI
DORUGLQWKDWKLHUDUFK\DS\UDPLGRIDFKLHYHPHQWUDWKHUWKDQRIELUWK
0HULWRFUDWVKDGHQWLUHO\GLIIHUHQWREVHVVLRQVWKDQWKHJHQWU\VFRQVWDQW
G\QDVWLFELFNHULQJV,QIDFWIHZLQ+DULVFODVVERWKHUHGWREUHHGDWDOOVR
EXV\ZHUHWKH\LQWKHLUFKRVHQILHOGV*HQWU\MRVWOHGIRUWKHWRSUDQNVRI
,PSHULDOJRYHUQPHQWZKLOHVHFRQGWLHUPHULWRFUDWVVDZWKHPVHOYHVZLHOGLQJWKH
UHDOSRZHU
,IRQO\&OHRQKDGVXFKDUROHLQPLQGIRUPH+DULWKRXJKW$YLFH
PLQLVWHUSRVLWLRQRUDQDGYLVRU\SRVW+HFRXOGKDYHPDQDJHGWKDWIRUDWLPH
RUHOVHEXQJOHGLWDQGJRWKLPVHOIIRUFHGRXWRIRIILFH(LWKHUZD\KHZRXOG
EHVDIHEDFNDW6WUHHOLQJZLWKLQD\HDURUWZR7KH\GRQWH[HFXWHYLFH
PLQLVWHUVQRWIRULQFRPSHWHQFHDWOHDVW
1RUGLGDYLFHPLQLVWHUIHHOWKHZRUVWEXUGHQRIUXOHEHDULQJ
UHVSRQVLELOLW\IRUWKHOLYHVRIDTXDGULOOLRQKXPDQEHLQJV
'RUVVDZKLPGULIWLQJDORQJLQKLVRZQWKRXJKWV8QGHUKHUJHQWOH
XUJLQJKHVDPSOHGWDVW\VDYRULHVDQGPDGHVPDOOWDON
7KHJHQWU\FRXOGEHGLVWLQJXLVKHGE\WKHLURVWHQWDWLRXVO\IDVKLRQDEOH
FORWKLQJZKLOHWKHHFRQRPLVWVJHQHUDOVDQGRWKHUPHULWRFUDWVWHQGHGWRZHDU
WKHIRUPDOJDUERIWKHLUSURIHVVLRQV
6RKHZDVPDNLQJDSROLWLFDOVWDWHPHQWDIWHUDOO+DULUHDOL]HG,Q
ZHDULQJSURIHVVRUVUREHVKHHPSKDVL]HGWKDWWKHUHPLJKWEHDQRQJHQWU\
)LUVW0LQLVWHUIRUWKHILUVWWLPHLQIRUW\\HDUV
1RWWKDWKHPLQGHGPDNLQJWKDWVWDWHPHQW+DULMXVWZLVKHGKHKDGGRQH
LWRQSXUSRVH
'HVSLWHWKHRIILFLDO5XHOOLDQHWKRVWKHUHPDLQLQJWKUHHVRFLDOFODVVHV
VHHPHGQHDUO\LQYLVLEOHDWWKHSDUW\
7KHIDFWRWXPVZRUHVRPEHUFRVWXPHVRIEURZQRUJUD\ZLWKH[SUHVVLRQVWR
PDWFK7KH\VHOGRPVSRNHRQWKHLURZQ8VXDOO\WKH\KRYHUHGDWWKHHOERZRI
VRPHDULVWRVXSSO\LQJIDFWVDQGHYHQILJXUHVWKDWWKHPRUHJDLO\GUHVVHG
JXHVWVXVHGLQWKHLUDUJXPHQWV$ULVWRVJHQHUDOO\ZHUHLQQXPHUDWHXQDEOHWR
GRVLPSOHDGGLWLRQ7KDWZDVIRUPDFKLQHV
+DULIRXQGWKDWKHDFWXDOO\KDGWRFRQFHQWUDWHLQRUGHUWRSLFNWKH
IRXUWKFODVVWKH*UH\VRXWRIWKHFURZG+HZDWFKHGWKHPPRYHOLNHILQFKHV
DPRQJSHDFRFNV
<HWWKHLUNLQGPDGHXSPRUHWKDQDVL[WKRI7UDQWRUVSRSXODWLRQ'UDZQ
IURPHYHU\SODQHWLQWKH(PSLUHE\WKHDOOVHHLQJ&LYLO6HUYLFHWHVWVWKH\
FDPHWRWKH&DSLWDO:RUOGVHUYHGWKHLUWLPHOLNHEDFKHORUPRQNVDQGOHIW
DJDLQIRURXWZRUOGSRVWLQJV)ORZLQJWKURXJK7UDQWRUOLNHZDWHULQWKHJORRP\
FLVWHUQVWKH*UH\VZHUHVHOGRPWKRXJKWRIDVKRQHVWDQGFRPPRQSODFHDQGGXOO
DVWKHPHWDOZDOOV
7KDWPLJKWKDYHEHHQKLVOLIHKHUHDOL]HG,WZDVWKHZD\RXWRIWKH
ILHOGVIRUPDQ\RIWKHEULJKWHUFKLOGUHQKHKDGNQRZQDW+HOLFRQ([FHSWWKDW
+DULKDGEHHQSOXFNHGULJKWRYHUWKHEXUHDXFUDF\VHQWVWUDLJKWWRDFDGHPHE\
WKHWLPHKHFRXOGVROYHDPHUHHLJKWKRUGHUWHQVRUGHIROLDWLRQDWDJHWHQ
5XHOOLDQLVPSUHDFKHGWKDWFLWL]HQZDVWKHKLJKHVWVRFLDOFODVVRIDOO
,QWKHRU\HYHQWKH(PSHURUVKDUHGVRYHUHLJQW\ZLWKFRPPRQPHQDQGZRPHQ
%XWDWDSDUW\OLNHWKLVWKHPRVWQXPHURXV*DODFWLFJURXSZDV
UHSUHVHQWHGPRVWO\E\WKHVHUYDQWVFDUU\LQJIRRGDQGGULQNDURXQGWKHKDOO
HYHQPRUHLQYLVLEOHWKDQWKHGRXUEXUHDXFUDWV7KHPDMRULW\RI7UDQWRUV
SRSXODWLRQWKHODERUHUVDQGPHFKDQLFVDQGVKRSNHHSHUVWKHGHQL]HQVRIWKH
6HFWRUVKDGQRVWDWLRQDWDJDWKHULQJOLNHWKLV7KH\OD\RXWVLGHWKH
5XHOOLDQUDQNLQJ
$VIRUWKH$UWHVWKDWILQDOVRFLDORUGHUZDVQRWPHDQWWREHLQYLVLEOH
0XVLFLDQVDQGMXJJOHUVVWUROOHGDPRQJWKHJXHVWVWKHVPDOOHVWPRVW
IODPER\DQWFODVV

(YHQPRUHGDVKLQJZDVDQ DLUVFXOSWRU+DULVSRWWHGDFURVVWKHYDVW
FKDPEHUZKHQ'RUVSRLQWHGKLPRXW+DULKDGKHDUGRIWKHQHZDUWIRUP7KH
VWDWXHVZHUHRIFRORUHGVPRNHWKDWWKHDUWLVWH[KDOHGLQUDSLGSXIIV6KDSHV
RIHHULHJKRVWOLNHFRPSOH[LW\IORDWHGDPRQJWKHEHPXVHGJXHVWV6RPHILJXUHV
FOHDUO\PDGHIXQRIWKHFRXUWO\JHQWU\DVSXII\FDULFDWXUHVRIWKHLU
RVWHQWDWLRXVFORWKHVDQGSRVHV
7R+DULVH\HWKHVPRNHILJXUHVVHHPHGHQWUDQFLQJXQWLOWKH\VWDUWHG
GULIWLQJDSDUWLQWRWDWWHUVZLWKRXWVXEVWDQFHRUSUHGLFWDELOLW\
,WVDOOWKHPRGHKHKHDUGRQHRQORRNHUUHPDUN,KHDUWKHDUWLVW
FRPHVVWUDLJKWIURP6DUN
7KH5HQDLVVDQFHZRUOG"DQRWKHUDVNHGZLGHH\HG,VQWWKDWDOLWWOH
GDULQJ":KRLQYLWHGKLP"
7KH(PSHURUKLPVHOILWVVDLG
+DULIURZQHG6DUNZKHUHWKRVHSHUVRQDOLW\VLPXODWLRQVFDPHIURP
5HQDLVVDQFHZRUOGKHPXWWHUHGLUULWDEO\NQRZLQJQRZZKDWKHGLVOLNHGDERXW
WKHVPRNHVKDSHVWKHLUHSKHPHUDOQDWXUH7KHLULQWHQGHGGHVWLQ\WRGLVVROYH
LQWRFKDRV
$VKHZDWFKHGWKHDLUVFXOSWRUEOHZDVDWLULFDOWDEOHDX7KHILUVW
ILJXUHIRUPHGRIFULPVRQVPRNHDQGKHGLGQRWUHFRJQL]HLWXQWLO'RUVHOERZHG
KLPDQGODXJKHG,WV\RX
+HFODPSHGKLVJDSLQJPRXWKVKXWXQVXUHKRZWRKDQGOHWKHVRFLDO
QXDQFHV$VHFRQGFORXGRIFRLOLQJEOXHVWUHDPHUVIRUPHGDFOHDUSLFWXUHRI
/DPXUNH\HEURZVNQRWWHGLQIXU\7KHIRJJ\ILJXUHVKRYHUHGLQFRQIURQWDWLRQ
+DULVPLOLQJ/DPXUNVFRZOLQJ
$QG/DPXUNORRNHGWKHIRROZLWKEXOJLQJH\HVDQGSRXWLQJOLSV
7LPHIRUDJUDFHIXOH[LW+DULVOLHXWHQDQWZKLVSHUHG+DULZDVRQO\
WRRJODGWRDJUHH
:KHQWKH\JRWKRPHKHZDVVXUHWKDWWKHUHKDGEHHQDELWH[WUDLQWKH
VWLPKHZDVKDQGHGVRPHWKLQJWKDWIUHHGKLVWRQJXH&HUWDLQO\LWZDVQRWWKH
VORZVSRNHQUHIOHFWLYH6HOGRQZKRKDGWUDGHGMDEVZLWK/DPXUN+HZRXOGKDYH
WRZDWFKWKDW
'RUVVLPSO\VKRRNKHUKHDG,WZDV\RX-XVWDSRUWLRQRI\RXWKDW
GRHVQWJHWRXWWRSOD\YHU\PXFK


3DUWLHVDUHVXSSRVHGWRFKHHUSHRSOHXS<XJRVDLGVOLGLQJDFXSRI
NDIIDFURVV+DULVVPRRWKPDKRJDQ\GHVNWRS
1RWWKLVRQH+DULVDLG
$OOWKDWOX[XU\SRZHUIXOSHRSOHEHDXWLIXOZRPHQZLWW\KDQJHUVRQ,
WKLQN,FRXOGKDYHVWD\HGDZDNH
7KDWVZKDWGHSUHVVHVPHWKLQNLQJEDFNRYHULW$OOWKDWSRZHU$QG
QRERG\WKHUHVHHPVWRFDUHDERXWRXUGHFOLQH
,VQWWKHUHVRPHROGVD\LQJDERXW
)LGGOLQJZKLOH5RPDEXUQV'RUVNQHZLWRIFRXUVH6KHVD\VLWVIURP
SUH(PSLUHDERXWD=RQHZLWKSUHWHQVLRQVRIJUDQGHXU$OOZRUPVOHDGWR
5RPDLVDQRWKHURQH
1HYHUKHDUGRIWKLV5RPD
0HHLWKHUEXWSRPSRVLW\VSULQJVIRUWKHWHUQDO,WORRNVFRPLFLQ
UHWURVSHFW
<XJRPRYHGUHVWOHVVO\DURXQG+DULVRIILFH6RWKH\GRQWFDUH"
7RWKHPLWVMXVWEDFNGURSIRUWKHLUSRZHUJDPHV$OUHDG\WKH(PSLUH
KDGZRUOGV=RQHVDQGHYHQZKROHDUFVRIVSLUDODUPVGHVFHQGHGLQWRVTXDORU
6WLOOZRUVHLQDZD\ZDVDVWHDG\VOLGHLQWRJDULVKDPXVHPHQWVHYHQ
YXOJDULW\7KHPHGLDVZDUPHGZLWKWKHVWXII7KHQHZUHQDLVVDQFHVW\OHVIURP
ZRUOGVOLNH6DUNZHUHSRSXODU
7R+DULWKHEHVWRIWKH(PSLUHZDVLWVVWUDQGVRIUHVWUDLQWRIVXEWOHW\

DQGGLVFUHWLRQLQPDQQHUVILQHVVHDQGFKDUPLQWHOOLJHQFHWDOHQWDQGHYHQ
JODPRXU+HOLFRQKDGEHHQFUXGHDQGUXUDOEXWLWNQHZWKHGLIIHUHQFHEHWZHHQ
VLONDQGVZLQH
:KDWGRWKHSROLF\W\SHVVD\"<XJRVDWKDOIZD\RQ+DULVGHVN
DYRLGLQJWKHFRQWUROIXQFWLRQVLPSODQWHGEHQHDWKDZRRG\YHQHHU+HKDGFRPH
LQZLWKWKHNDIIDVDSUHWH[WILVKLQJIRUJRVVLSDERXWWKHH[DOWHG+DUL
VPLOHGWRKLPVHOISHRSOHUHOLVKHGVRPHDVSHFWVRIKLHUDUFK\KRZHYHUPXFK
WKH\JULSHGDERXWLW
7KH\UHKRSLQJVRPHRIWKHPRUDOUHELUWKPRYHPHQWVOLNHUHYLVHG
5XHOOLDQLVPVD\ZLOOWDNHKROG3XWVSLQHLQWRWKH=RQHVRQHRIWKHPVDLG
8PPP7KLQNLWOOZRUN"
1RWIRUORQJ
,GHRORJ\ZDVDQXQFHUWDLQFHPHQW(YHQUHOLJLRXVIHUYRUFRXOGQRWJOXH
DQHPSLUHWRJHWKHUIRUORQJ(LWKHUIRUFHFRXOGGULYHIRUPDWLRQRIDQHPSLUH
EXWWKH\FRXOGQRWKROGDJDLQVWJUHDWHUVWHDG\WLGHVSULQFLSDOO\HFRQRPLFV
+RZDERXWWKHZDULQWKH2ULRQ=RQH"
1RERG\PHQWLRQHGLW
7KLQNZHYHJRWZDUILJXUHGULJKWLQWKHHTXDWLRQV"<XJRKDGDNQDFN
IRUVXGGHQO\SXWWLQJKLVILQJHURQZKDWZDVERWKHULQJ+DUL
1R:DUZDVDQRYHUHVWHHPHGHOHPHQWLQKLVWRU\
&HUWDLQO\ZDURIWHQJDLQHGFHQWHUVWDJHQRRQHFRQWLQXHGWRUHDGD
EHDXWLIXOSRHPZKHQDILVWILJKWEURNHRXWQHDUE\%XWILVWILJKWVGLGQRW
ODVWHLWKHU)XUWKHUWKH\MRJJOHGWKHHOERZVRIWKRVHWU\LQJWRPDNHD
OLYLQJ7RHQJLQHHUVDQGWUDGHUVDOLNHZDUGLGQRWSD\6RZK\GLGZDUVEUHDN
RXWQRZZLWKDOOWKHHFRQRPLFZHLJKWRIWKH(PSLUHDJDLQVWWKHP"
:DUVDUHVLPSOH%XWZHUHPLVVLQJVRPHWKLQJEDVLF,FDQIHHOLW
:HYHEDVHGWKHPDWULFHVRQDOOWKDWKLVWRULFDOGDWD'RUVGXJRXW
<XJRVDLGDELWGHIHQVLYHO\7KDWVVROLG
,GRQWGRXEWLW6WLOO
/RRNZHYHJRWRYHUWZHOYHWKRXVDQG\HDUVRIKDUGIDFWV,EXLOWWKH
PRGHORQWKDW
,KDYHDIHHOLQJZKDWZHUHPLVVLQJLVQWVXEWOH
0RVWFROODSVHVZHUHQRWIURPDEVWUXVHFDXVHV,QWKHHDUO\GD\VRI
(PSLUHFRQVROLGDWLRQORFDOPLQRUVRYHUHLJQWLHV IORXULVKHGWKHQGLHG7KHUH
ZHUHUHFXUUHQWWKHPHVLQWKHLUKLVWRULHV
$JDLQDQGDJDLQVWDUVSDQQLQJUHDOPVFROODSVHGXQGHUWKHZHLJKWRI
H[FHVVLYHWD[DWLRQ6RPHWLPHVWKHWD[HVVXSSRUWHGPHUFHQDU\DUPLHVZKLFK
GHIHQGHGDJDLQVWQHLJKERUVRUZKLFKVLPSO\NHSWGRPHVWLFRUGHUDJDLQVW
FHQWULIXJDOIRUFHV:KDWHYHUWKHRVWHQVLEOHFDXVHRIWD[HVVRRQHQRXJKWKH
JUHDWFLWLHVEHFDPHGHSRSXODWHGDVSHRSOHIOHGWKHWD[FROOHFWRUVVHHNLQJ
UXUDOSHDFH
%XWZK\GLGWKH\GRWKDWVSRQWDQHRXVO\"
3HRSOH+DUL VDWXSVXGGHQO\7KDWVZKDWZHUHPLVVLQJ
+XK"<RXSURYHG\RXUVHOIUHPHPEHU"WKH5HGXFWLRQLVW7KHRUHP"WKDW
LQGLYLGXDOVGRQWPDWWHU
7KH\GRQW%XWSHRSOHGR2XUFRXSOHGHTXDWLRQVGHVFULEHWKHPLQWKH
PDVVEXWZHGRQWNQRZWKHFULWLFDOGULYHUV
7KDWVDOOKLGGHQGRZQLQWKHGDWD
0D\EHQRW:KDWLIZHZHUHELJVSLGHUVLQVWHDGRISULPDWHV":RXOG
SV\FKRKLVWRU\ORRNWKHVDPH"
<XJRIURZQHG:HOOLIWKHGDWDZHUHWKHVDPH
'DWDRQWUDGHZDUVSRSXODWLRQVWDWLVWLFV",WZRXOGQWPDWWHUZKHWKHU
ZHZHUHFRXQWLQJVSLGHUVLQVWHDGRISHRSOH"
<XJRVKRRNKLVKHDGKLVIDFHFORXGLQJXQZLOOLQJWRFRQFHGHDSRLQW
WKDWPLJKWWRSSOH\HDUVRIZRUN,WVJRWWDEHWKHUH
<RXUFRPLQJLQKHUHWRJHWGHWDLOVRIZKDWWKHULFKDQGIDPRXVGRDW
WKHLUUHYHOVZKHUHVWKDWLQWKHHTXDWLRQV"

<XJRVPRXWKWZLVWHGLUNHGQRZ7KDWVWXIILWGRHVQWPDWWHU
:KRVD\V"
:HOOKLVWRU\
,VZULWWHQE\WKHZLQQHUVWUXHHQRXJK%XWKRZGRWKHJUHDWJHQHUDOV
JHWPHQDQGZRPHQWRPDUFKWKURXJKIUHH]LQJPXG":KHQZRQWWKH\PDUFK"
1RERG\NQRZV
:HQHHGWRNQRZ2UUDWKHUWKHHTXDWLRQVGR
+RZ"
,GRQWNQRZ
*RWRWKHKLVWRULDQV"
+DULODXJKHG+HVKDUHG'RUVFRQWHPSWIRUPRVWRIKHUSURIHVVLRQ7KH
FXUUHQWIDVKLRQLQWKHVWXG\RIWKHSDVWZDVDPDWWHURIWDVWHQRWGDWD
+HKDGRQFHWKRXJKWWKDWKLVWRU\ZDVVLPSO\DPDWWHURIJUXEELQJLQ
PXVW\F\EHUILOHV7KHQLI'RUVZRXOGVKRZKLPKRZWRWUDFNGRZQGDWDZKHWKHU
HQFRGHGLQDQFLHQWIHUULWHF\OLQGHUVRUSRO\PHUEORFNVRUVWUDQGZDUHWKHQKH
ZRXOGKDYHDILUPEDVLVIRUPDWKHPDWLFV'LGQW'RUVDQGRWKHUKLVWRULDQV
VLPSO\DGGRQHPRUHEULFNRINQRZOHGJHWRDQHYHUJURZLQJPRQXPHQW"
7KHFXUUHQWVW\OHWKRXJKZDVWRPDUVKDOWKHSDVWLQWRDSUHIHUUHG
IODYRU)DFWLRQVIRXJKWRYHUWKHDQWLTXLW\RYHUWKHLUKLVWRU\YVRXUV
)ULQJHVIORXULVKHG7KHVSLUDOFHQWULFKHOGWKDWKLVWRULFDOIRUFHVVSUHDG
DORQJVSLUDODUPVZKHUHDVWKH+XEIRFXVHGPDLQWDLQHGWKDWWKH*DODFWLF
&HQWHUZDVWKHWUXHPHGLDWLQJDJHQF\IRUFDXVHVWUHQGVPRYHPHQWVHYROXWLRQ
7HFKQRFUDWVFRQWHQGHGZLWK1DWXUDOVZKRIHOWWKDWLQQDWHKXPDQTXDOLWLHV
GURYHFKDQJH
$PRQJP\ULDGIDFWVDQGIRRWQRWHVVSHFLDOLVWVVDZSUHVHQWSROLWLFV
PLUURUHGLQWKHSDVW$VWKHSUHVHQWIUDFWXUHGDQGWUDQVILJXUHGWKHUHVHHPHG
QRSRLQWRIUHIHUHQFHRXWVLGHKLVWRU\LWVHOIDQXQUHOLDEOHSODWIRUPLQGHHG
HVSHFLDOO\ZKHQRQHUHDOL]HGKRZPDQ\P\VWHULRXVJDSVWKHUHZHUHLQWKH
UHFRUGV$OOWKLVVHHPHGWR+DULWREHPRUHIDVKLRQWKDQIRXQGDWLRQ7KHUHZDV
QRXQFRQWHVWHGSDVW
:KDWFRQWDLQHGWKHFHQWULIXJDOIRUFHVRIUHODWLYLVPOHWPHKDYHP\
YLHZSRLQWDQG\RXFDQKDYH\RXUVZDVDQDUHQDRIEURDGDJUHHPHQW0RVWSHRSOH
JHQHUDOO\KHOGWKDWWKH(PSLUHZDVJRRGRYHUDOO7KDWWKHORQJSHULRGVRI
VWDVLVKDGEHHQWKHEHVWWLPHVIRUFKDQJHDOZD\VFRVWVRPHRQH7KDWDERYHWKH
FRPSHWLQJWKURQJWKURXJKWKHIDFWLRQVVKRXWLQJZKDWZHUHHVVHQWLDOO\IDPLO\
VWRULHVDWHDFKRWKHUWKHUHZDVZRUWKLQFRPSUHKHQGLQJZKHUHKXPDQLW\KDG
SDVVHGZKDWLWKDGGRQH
%XWWKHUHDJUHHPHQWVWRSSHG)HZVHHPHGFRQFHUQHGZLWKZKHUHKXPDQLW\
RUHYHQWKH(PSLUHZDVJRLQJ+HKDGFRPHWRVXVSHFWWKDWWKHVXEMHFWZDV
LJQRUHGLQIDYRURI\RXUKLVWRU\DJDLQVWPLQHEHFDXVHPRVWKLVWRULDQV
XQFRQVFLRXVO\GUHDGHGWKHIXWXUH7KH\VHQVHGWKHGHFOLQHLQWKHLUVRXOVDQG
NQHZWKDWRYHUWKHKRUL]RQOD\QRW\HWDQRWKHUVKLIWWKHQVWDVLVEXWD
FROODSVH
6RZKDWGRZHGR"+DULUHDOL]HGWKDW<XJRKDGVDLGWKLVWZLFHQRZ+H
KDGGULIWHGRIILQWRUHYHULH
,GRQWNQRZ
$GGDQRWKHUWHUPIRUEDVLFLQVWLQFWV"
+DULVKRRNKLVKHDG3HRSOHGRQWUXQRQLQVWLQFW%XWWKH\GREHKDYH
OLNHSHRSOHOLNHSULPDWHV,VXSSRVH
6RZHVKRXOGORRNLQWRWKDW"
+DULWKUHZXSKLVKDQGV,FRQIHVV,IHHOWKDWWKLVOLQHRIORJLFLV
OHDGLQJVRPHZKHUHEXW,FDQWVHHWKHHQGRILW
<XJRQRGGHGJULQQHG,WOOFRPHRXWZKHQLWVULSH
7KDQNV,PQRWWKHEHVWRIFROODERUDWRUV, NQRZ7RRPRRG\
+H\QHYHUPLQG*RWWDWKLQNRXWORXGVRPHWLPHVLVDOO
6RPHWLPHV,PQRWVXUH,PWKLQNLQJDWDOO
/HPPHVKRZ\RXWKHODWHVWKXK"<XJROLNHGWRSDUDGHKLVLQYHQWLRQV

DQG+DULVDWEDFNDV<XJRDFFHVVHGWKHRIILFHKRORDQGSDWWHUQVDSSHDUHGLQ
PLGDLU(TXDWLRQVKXQJLQVSDFHVWDFNHGDQGHDFKWHUPFRORUFRGHG
6RPDQ\7KH\UHPLQGHG+DULRIELUGVIORFNLQJLQJUHDWEDQNV
3V\FKRKLVWRU\ZDVEDVLFDOO\DYDVWVHWRILQWHUORFNHGHTXDWLRQV
IROORZLQJWKHYDULDEOHVRIKLVWRU\,WZDVLPSRVVLEOHWRFKDQJHRQHDQGQRW
YDU\DQ\RWKHU$OWHUSRSXODWLRQDQGWUDGHFKDQJHGDORQJZLWKPRGHVRI
HQWHUWDLQPHQWVH[XDOPRUHVDQGDKXQGUHGRWKHUIDFWRUV
6RPHZHUHXQGRXEWHGO\XQLPSRUWDQWEXWZKLFK"+LVWRU\ZDVDERWWRPOHVV
TXDUU\RIIDFWRLGVPHDQLQJOHVVZLWKRXWVRPHZD\RIZLQQRZLQJWKHKDLORI
SDUWLFXODUV7KDWZDVWKHHVVHQWLDOILUVWWDVNRIDQ\WKHRU\RIKLVWRU\WR
ILQGWKHGHHSYDULDEOHV
3RVWGLFWLRQUDWHVSUHVWR<XJRVDLGKLVKDQGFRPSXWHUVXVSHQGLQJLQ
DLUJUDSKVHOHJDQWO\DUUD\HG(FRQRPLFLQGLFHVYDULDEOHIDPLOLHVWKH
ZRUNV
:KDWHUDV"+DULDVNHG
7KLUGPLOOHQQLDWRVHYHQWK*(
7KHPXOWLGLPHQVLRQDOVXUIDFHVUHSUHVHQWLQJHFRQRPLFYDULDEOHVZHUHOLNH
WZLVWHGERWWOHVILOOHGZLWKDV<XJRWLPHVWHSSHGWKHPVORVKLQJIOXLGV7KH
OLTXLGVRI\HOORZDQGDPEHUDQGYLUXOHQWUHGIORZHGDURXQGDQGWKURXJKHDFK
RWKHULQDVXSSOHVORZGDQFH+DULZDVSHUSHWXDOO\DPD]HGDWKRZEHDXW\DURVH
LQWKHPRVWXQOLNHO\ZD\VIURPPDWKHPDWLFV<XJRKDGSORWWHGDEVWUXVH
HFRQRPHWULFTXDQWLWLHV\HWLQWKHJUDYLGVZD\RIFHQWXULHVWKH\PDGHGHOLFDWH
DUDEHVTXHV
6XUSULVLQJO\JRRGDJUHHPHQW+DULDOORZHG7KH\HOORZVXUIDFHVRI
KLVWRULFDOGDWDPHUJHGFOHDQO\ZLWKWKHRWKHUFRORUVNLQVIOXLGVILQGLQJ
FXUYHGOHYHOV$QGFRYHULQJIRXUPLOOHQQLD1RLQILQLWLHV"
7KDWQHZUHQRUPDOL]DWLRQVFKHPHEORWWHGWKHPRXW
([FHOOHQW7KHPLGGOH*DODFWLF(UDGDWDLVWKHPRVWVROLGWRR
FRUUHFW"
<HDK7KHSROLWLFLDQVJRWLQWRWKHDFWDIWHUWKHVHYHQWKPLOOHQQLXP
'RUVLVKHOSLQPHILOWHURXWWKHJDUEDJH
+DULDGPLUHGWKHJUDFHIXOEOHQGLQJRIFRORUVDQFLHQWZLQHLQ
WUDQVILQLWHERWWOHV
7KHSV\FKRKLVWRULFDOUDWHVOLQNHGWRJHWKHUVWURQJO\+LVWRU\ZDVQRWDW
DOOOLNHDVWXUG\VWHHOHGLILFHULJLGO\VSDQQLQJWLPHLWUDWKHUPRUH
UHVHPEOHGDURSHEULGJHJURDQLQJDQGIOH[LQJZLWKHYHU\IRRWIDOO7KLV
VWURQJFRXSOLQJG\QDPLFOHGWRUHVRQDQFHVLQWKHHTXDWLRQVZLOG
IOXFWXDWLRQVHYHQLQILQLWLHV<HWQRWKLQJUHDOO\ZHQWLQILQLWHLQUHDOLW\VR
WKHHTXDWLRQVKDGWREHIL[HG+DULDQG<XJRKDGVSHQWPDQ\\HDUVHOLPLQDWLQJ
XJO\LQILQLWHV0D\EHWKHLUJRDOZDVLQVLJKW
+RZGRWKHUHVXOWVORRNLI\RXVLPSO\UXQWKHHTXDWLRQVIRUZDUGSDVW
WKHVHYHQWKPLOOHQQLXP"+DULDVNHG
2VFLOODWLRQVEXLOGXS<XJRDGPLWWHG
)HHGEDFNORRSVZHUHVFDUFHO\QHZ+DULNQHZWKHJHQHUDOWKHRUHPDQFLHQW
EH\RQGPHDVXUH,IDOOYDULDEOHVLQDV\VWHPDUHWLJKWO\FRXSOHGDQG\RXFDQ
FKDQJHRQHRIWKHPSUHFLVHO\DQGEURDGO\WKHQ\RXFDQLQGLUHFWO\FRQWURODOO
RIWKHP7KHV\VWHPFRXOGEHJXLGHGWRDQH[DFWRXWFRPHWKURXJKLWVP\ULDG
LQWHUQDOIHHGEDFNORRSV6SRQWDQHRXVO\WKHV\VWHPRUGHUHGLWVHOIDQGREH\HG
+LVWRU\RIFRXUVHREH\HGQRRQH%XWIRUHUDVVXFKDVWKHIRXUWKWR
VHYHQWKPLOOHQQLXPVRPHKRZWKHHTXDWLRQVJRWPDWWHUVULJKW3V\FKRKLVWRU\
FRXOGSRVWGLFWKLVWRU\
,QWUXO\FRPSOH[V\VWHPVKRZDGMXVWPHQWVRFFXUOD\EH\RQGWKHKXPDQ
FRPSOH[LW\KRUL]RQEH\RQGNQRZLQJDQGPRVWLPSRUWDQWQRWZRUWKNQRZLQJ
%XWLIWKHV\VWHPZHQWDZU\VRPHERG\KDGWRJHWGRZQLQWKHJXWVRILW
DQGILQGWKHWURXEOH$Q\LGHDV"&OXHV"
<XJRVKUXJJHG/RRNDWWKLV
7KHIOXLGVODSSHGDWWKHZDOOVRIWKHERWWOHV0RUHZDUSHGYROXPHV

DSSHDUHGILOOHGZLWKEULJKWO\FRORUHGGDWDOLTXLGV+DULZDWFKHGDVWLGHV
VZHSWWKURXJKWKHEXUQWRUDQJHYDULDEOHVSDFHGULYLQJDQVZHULQJZDYHVLQWKH
SXUSOHOD\HUVQHDUE\6RRQWKHHQWLUHKRORVKRZHGIXULRXVO\FKXUQLQJ
WXUEXOHQFH
6RWKHHTXDWLRQVIDLO+DULVDLG
<HDKELJWLPHWRR7KHJUDQGF\FOHVODVWDERXWDKXQGUHGDQGWZHQW\
ILYH\HDUV%XWVPRRWKLQJRXWHYHQWVVKRUWHUWKDQHLJKW\\HDUVJLYHVDVWHDG\
SDWWHUQ6HH
+DULZDWFKHGWXUEXOHQFHEXLOGOLNHDKXUULFDQHFKXUQLQJDPXOWLFRORUHG
RFHDQ
<XJRVDLG7KDWWDNHVDZD\VFDWWHUGXHWRJHQHUDWLRQDOVW\OHV'RUV
FDOOVLW,FDQWDNHWKH=RQHVWKDWFRQVFLRXVO\LQFUHDVHGKXPDQOLIHVSDQ,
WLPHVWHSWKHHTXDWLRQVIRUZDUGJUHDWEXWWKHQ,UXQRXWRIGDWD+RZFRPH"
,PLQHWKHKLVWRU\VRPHDQGLWWXUQVRXWWKRVHVRFLHWLHVGLGQWODVWORQJ
+DULVKRRNKLVKHDG<RXUHVXUH",GLPDJLQH LQFUHDVLQJWKHDYHUDJH
DJHZRXOGEULQJDOLWWOHZLVGRPLQWRWKHSLFWXUH
1RWVR,ORRNHGGHHSHUDQGIRXQGWKDWZKHQWKHOLIHVSDQUHDFKHGWKH
VRFLDOF\FOHWLPHXVXDOO\DERXWDKXQGUHGDQGWHQ6WDQGDUG<HDUVLQVWDELOLW\
URVH:KROHSODQHWVKDGZDUVGHSUHVVLRQVJHQHUDOVRFLDOLOOQHVVHV
+DULIURZQHG7KDWHIIHFWLVLWNQRZQ"
'RQWWKLQNVR
7KLVLVZK\KXPDQVUHDFKHGDEDUULHULQLPSURYLQJWKHLUORQJHYLW\"
6RFLHW\EUHDNVGRZQHQGLQJWKHSURJUHVV"
<HDK
<XJRZRUHDVPDOOWLJKWVPLOHE\ZKLFK+DULNQHZWKDWKHZDVUDWKHU
SURXGRIWKLVUHVXOW*URZLQJLUUHJXODULWLHVEXLOGLQJWRFKDRV
7KLVZDVWKHGHHSSUREOHPWKH\KDGQRWPDVWHUHG'DPQ+DULKDGDJXW
GLVOLNHRIXQSUHGLFWDELOLW\
<XJRJDYH+DULDFURRNHGVPLOH2QWKDW RQHERVV,JRWQRQHZV
'RQWZRUU\+DULVDLGFKHHUIXOO\WKRXJKKHGLGQWIHHOLW<RXYH
PDGHJRRGSURJUHVV5HPHPEHUWKHDGDJHWKH,PSHULXPZDVQWEXLOWLQDGD\
<HDKEXWLWVHHPVWREHIDOOLQDSDUWSOHQW\IDVW
7KH\VHOGRPPHQWLRQHGWKHGHHSVHDWHGPRWLYDWLRQIRUSV\FKRKLVWRU\WKH
SHUYDVLYHDQ[LHW\WKDWWKH(PSLUHZDVGHFOLQLQJIRUUHDVRQVQRRQHNQHZ
7KHUHZHUHWKHRULHVDSOHQW\EXWQRQHKDGSUHGLFWLYHSRZHU+DULKRSHGWR
VXSSO\WKDW3URJUHVVZDVLQIXULDWLQJO\VORZ
<XJRZDV ORRNLQJPRURVH+DULJRWXSFDPHDURXQGWKHELJGHVNDQGJDYH
<XJRDJHQWOHVODSRQWKHEDFN&KHHUXS3XEOLVKWKLVUHVXOW
&DQ,":HYHJRWWRNHHSSV\FKRKLVWRU\TXLHW
-XVWJURXSWKHGDWDWKHQSXEOLVKLQDMRXUQDOGHYRWHGWRDQDO\WLFDO
KLVWRU\7DONWR'RUVDERXWVHOHFWLQJWKHMRXUQDO
<XJREULJKWHQHG,OOZULWHLWXSVKRZ\RX
1ROHDYHPHRXWRILW,WV\RXUZRUN
+H\\RXVKRZHGPHKRZWRVHWXSWKHDQDO\VLVZKHUH
,WV\RXUV3XEOLVK
:HOO
+DULGLGQRWPHQWLRQWKHIDFWWKDWQRZDQ\WKLQJSXEOLVKHGXQGHUKLV
QDPHZRXOGDWWUDFWDWWHQWLRQ$IHZPLJKWJXHVVDWWKHLPPHQVHO\ODUJHUWKHRU\
OXUNLQJEHKLQGWKHVLPSOHOLIHVSDQUHVRQDQFHHIIHFW%HVWWRNHHSDORZ
SURILOH
:KHQ<XJRKDGJRQHEDFNWRZRUN+DULVDWIRUDZKLOHDQGZDWFKHGWKH
VTXDOOVZRUNWKURXJKWKHGDWDIOXLGVVWLOOWLPHVWHSSLQJLQWKHDLUDERYHKLV
GHVN7KHQKHJODQFHGDWDIDYRULWHTXRWDWLRQRIKLVSRLQWHGRXWWRKLPE\
'RUVJLYHQWRKLPRQDVPDOOHOHJDQWFHUDPRSODTXH
0LQLPXPIRUFHDSSOLHGDWDFXVSPRPHQWDWWKHKLVWRULFDOIXOFUXPSDYHVWKH
SDWKWRDGLVWDQWYLVLRQ3XUVXHRQO\WKRVHLPPHGLDWHJRDOVZKLFKVHUYHWKH

ORQJHVWSHUVSHFWLYHV

(PSHURU.DPEOHVWK2UDFOH9HUVH

%XWVXSSRVH\RXFDQWDIIRUGORQJSHUVSHFWLYHV"KHPXWWHUHGWKHQZHQW
EDFNWRZRUN


7KHQH[WGD\KHJRWDQHGXFDWLRQLQWKHUHDOLWLHVRI,PSHULDOSROLWLFV
<RXGLGQWNQRZWKH'VFRSHZDVRQ\RX"<XJRDVNHG
+DULZDWFKHGWKHFRQYHUVDWLRQZLWK/DPXUNUHSOD\RQKLVRIILFHKROR+H
KDGIOHGWRWKH8QLYHUVLW\ZKHQWKH,PSHULDO6SHFLDOVVWDUWHGKDYLQJWURXEOH
KROGLQJWKHPHGLDPREDZD\IURPKLVDSDUWPHQW7KH\KDGFDOOHGLQ
UHLQIRUFHPHQWVZKHQWKH\FDXJKWDWHDPGULOOLQJDQDFRXVWLFWDSLQWRWKH
DSDUWPHQWIURPWKUHHOD\HUVDERYH +DULDQG'RUVKDGJRWWHQRXWZLWKDQHVFRUW
WKURXJKDPDLQWHQDQFHJUDYGURS
1R,GLGQW7KHUHZDVDORWJRLQJRQ+HUHPHPEHUHGKLVERG\JXDUGV
DFFRVWLQJVRPHRQHFKHFNLQJDQGOHWWLQJLWSDVV7KH'FDPHUDDQGDFRXVWLF
WUDFNHUZHUHVRVPDOOWKDWDPHGLDGHSXW\FRXOGZDONDURXQGZLWKWKHPXQGHU
IRUPDOZHDU$VVDVVLQVXVHGWKHVDPHDUWIXOFRQFHDOPHQW%RG\JXDUGVNQHZKRZ
WRGLVWLQJXLVKEHWZHHQWKHWZR
<XJRVDLGZLWK'DKOLWHVDYY\*RWWDZDWFKHP\RXJRQQDSOD\LQWKRVH
OHDJXHV
,DSSUHFLDWHWKHFRQFHUQ+DULVDLGGU\O\
'RUVWDSSHGDILQJHUWRKHUOLSV,WKLQN\RXFDPHRYHUUDWKHUZHOO
,GLGQWZDQWWRVHHPDVWKRXJK,ZHUHGHOLEHUDWHO\FXWWLQJXSD
PDMRULW\OHDGHUIURPWKH+LJK&RXQFLO+DULVDLGKHDWHGO\
%XWWKDWVZKDW\RXZHUHGRLQ<XJRVDLG
,VXSSRVHEXWDWWKHWLPHLWVHHPHGOLNHSROLWHEDQWHUKH
ILQLVKHGODPHO\(GLWHGIRU'LWZDVDTXLFNYHUEDO3LQJ3RQJZLWKUD]RU
EODGHVLQVWHDGRIEDOOV
%XW\RXWRSSHGKLPDWHYHU\H[FKDQJH'RUVREVHUYHG
,GRQWHYHQGLVOLNHKLP+HKDVGRQHJRRGWKLQJVIRUWKH(PSLUH+H
SDXVHGWKLQNLQJ%XWLWZDVIXQ
0D\EH\RXGRKDYHDWDOHQWIRUWKLVVKHVDLG
,GUDWKHUQRW
,GRQWWKLQN\RXKDYHPXFKFKRLFH<XJRVDLG<RXUHJHWWLQ
IDPRXV
)DPHLVWKHDFFXPXODWLRQRIPLVXQGHUVWDQGLQJVDURXQGDZHOONQRZQ
QDPH'RUVVDLG
+DULVPLOHG:HOOSXW
,WVIURP(OGRQLDQWKH(OGHUWKHORQJHVWOLYHGHPSHURU7KHRQO\RQH
RIKLVFODQWRGLHRIROGDJH
0DNHVWKHSRLQW<XJRVDLG<RXJRWWDH[SHFWVRPHVWRULHVJRVVLS
PLVWDNHV
+DULVKRRNKLVKHDGDQJULO\1R/RRNZHFDQWOHWWKLVH[WUDQHRXV
PDWWHUGLVWUDFWXV<XJRZKDWDERXWWKRVHERRWOHJSHUVRQDOLW\FRQVWHOODWLRQV
\RXDFTXLUHG"
,YHJRWHP
0DFKLQHWUDQVODWHG"7KH\ZLOOUXQ"
<HDKEXWWKH\WDNHDQDZIXOORWRIPHPRU\DQGUXQQLQJYROXPH,YH
WXQHGWKHPVRPHEXWWKH\QHHGDELJJHUSDUDOOHOSURFHVVLQJQHWZRUNWKDQ,FDQ
JLYHWKHP
'RUVIURZQHG,GRQWOLNHWKLV7KHVHDUHQWMXVWFRQVWHOODWLRQV
WKH\UHVLPV
+DULQRGGHG:HUHGRLQJUHVHDUFKKHUHQRWWU\LQJWRPDQXIDFWXUHD

VXSHUUDFH
'RUVVWRRGDQGSDFHGHQHUJHWLFDOO\7KHPRVWDQFLHQWRIWDERRVLV
DJDLQVWVLPV(YHQSHUVRQDOLW\FRQVWHOODWLRQVREH\ULJLGODZV
2IFRXUVHDQFLHQWKLVWRU\%XW
3UHKLVWRU\+HUQRVWULOVIODUHG7KHSURKLELWLRQVJREDFNVRIDU
WKHUHDUHQRUHFRUGVRIKRZWKH\VWDUWHGXQGRXEWHGO\IURPVRPHGLVDVWURXV
H[SHULPHQWVZHOOEHIRUHWKH6KDGRZ$JH
:KDWVWKDW"<XJRDVNHG
7KHORQJWLPHZHKDYHQRFOHDULGHDRI KRZORQJLWODVWHGWKRXJK
FHUWDLQO\VHYHUDOPLOOHQQLDEHIRUHWKH(PSLUHEHFDPHFRKHUHQW
%DFNRQ(DUWK\RXPHDQ"<XJRORRNHGVNHSWLFDO
(DUWKLVPRUHOHJHQGWKDQIDFW%XW\HVWKHWDERRFRXOGJREDFNWKDW
IDU
7KHVHDUHKRSHOHVVO\FRQVWULFWHGVLPV<XJRVDLG7KH\GRQWNQRZ
DQ\WKLQJDERXWRXUWLPH2QHLVDUHOLJLRXVIDQDWLFIRUVRPHIDLWK,QHYHU
KHDUGRI7KHRWKHUVDVPDUWDVVZULWHU1RGDQJHUWRDQ\ERG\H[FHSWPD\EH
WKHPVHOYHV
'RUVUHJDUGHG<XJRVXVSLFLRXVO\,IWKH\UHVRQDUURZZK\DUHWKH\
XVHIXO"
%HFDXVHWKH\FDQFDOLEUDWHSV\FKRKLVWRULFDOLQGLFHV:HKDYHPRGHOLQJ
HTXDWLRQVWKDWGHSHQGRQEDVLFKXPDQSHUFHSWLRQV,IZHKDYHDSUHDQFLHQW
PLQGHYHQVLPPHGZHFDQFDOLEUDWHWKHPLVVLQJFRQVWDQWVLQWKHUDWH
HTXDWLRQV
'RUVVQRUWHGGRXEWIXOO\,GRQWIROORZWKHPDWKHPDWLFVEXW,NQRZ
VLPVDUHGDQJHURXV
/RRNQRERG\VDYY\EHOLHYHVWKDWVWXIIDQ\PRUH<XJRVDLG0DWKLVWV
KDYHEHHQUXQQLQJSVHXGRVLPVIRUDJHV7LNWRNV
7KRVHDUHLQFRPSOHWHSHUVRQDOLWLHVFRUUHFW"'RUVDVNHGVHYHUHO\
:HOO\HDKEXW
:HFRXOGJHWLQWRYHU\ELJWURXEOHLIWKHVHVLPVDUHEHWWHUPRUH
YHUVDWLOH
<XJRZDYHGDZD\KHUSRLQWZLWKKLVODUJHKDQGVVPLOLQJOD]LO\'RQW
ZRUU\,JRWWKHPDOOXQGHUFRQWURO$Q\ZD\,YH DOUHDG\JRWDZD\WRVROYH
RXUSUREOHPRIJHWWLQJHQRXJKUXQQLQJYROXPHPDFKLQHWLPHDQG,YHJRWD
FRYHUIRUXV
+DULDUFKHGKLVH\HEURZV:KDWVWKLV"
,YHJRWDFXVWRPHUIRUWKHVLPV6RPHERG\ZKROOUXQWKHPFRYHUDOO
H[SHQVHVDQGSD\IRUWKHSULYLOHJH:DQWVWRXVHWKHPIRUFRPPHUFLDO
SXUSRVHV
:KR"+DULDQG'RUVDVNHGWRJHWKHU
$UWLILFH$VVRFLDWHV<XJRVDLGWULXPSKDQWO\
+DULORRNHGEODQN'RUVSDXVHGDVWKRXJKVHDUFKLQJIRUDGLVWDQWPHPRU\
DQGWKHQVDLG$ILUPHQJDJHGLQFRPSXWHUV\VWHPVDUFKLWHFWXUH
5LJKWRQHRIWKHEHVW7KH\YHJRWDPDUNHWIRUROGVLPVDV
HQWHUWDLQPHQW
+DULVDLG1HYHUKHDUGRIWKHP
<XJRVKRRNKLVKHDGLQDPD]HPHQW<RXGRQWNHHSXS+DUL
,GRQWWU\WRNHHSXS,WU\WRVWD\DKHDG
'RUVVDLG,GRQWOLNHXVLQJDQ\RXWVLGHDJHQF\$QGZKDWVWKLVDERXW
SD\LQJ"
<XJREHDPHG7KH\UHSD\LQJIRUOLFHQVHULJKWV,QHJRWLDWHGLWDOO
'RZHKDYHDQ\FRQWURORYHUKRZWKH\XVHWKHVLPV"'RUVOHDQHGIRUZDUG
DOHUWO\
:HGRQWQHHGDQ\<XJRVDLGGHIHQVLYHO\7KH\OOSUREDEO\XVHWKHP
LQDGYHUWLVHPHQWVRUVRPHWKLQJ+RZPXFKXVHFDQ\RXJHWRXWRIDVLPQRERG\
ZLOOSUREDEO\XQGHUVWDQG"
,GRQWOLNHLW$VLGHIURPWKHFRPPHUFLDO DVSHFWVLWVULVN\WRHYHQ

UHYLYHDQDQFLHQWVLP3XEOLFRXWUDJH
+H\WKDWVWKHSDVW3HRSOHGRQWIHHOWKDWZD\DERXWWLNWRNVDQG
WKH\UHJHWWLQJSUHWW\VPDUW
7LNWRNVZHUHPDFKLQHVRIORZPHQWDOFDSDFLW\KHOGULJRURXVO\EHQHDWKDQ
LQWHOOLJHQFHFHLOLQJE\WKH(QFRGLQJ/DZVRIDQWLTXLW\+DULKDGDOZD\V
VXVSHFWHGWKDWWKHWUXHDQFLHQWURERWVKDGPDGHWKRVHODZVVRWKDWWKHUHDOP
RIPDFKLQHLQWHOOLJHQFHGLGQRWVSDZQHYHUPRUHVSHFLDOL]HGDQGXQSUHGLFWDEOH
W\SHV
7KHWUXHURERWVVXFKDV5 'DQHHO2OLYDZUHPDLQHGDORRIFRRODQG
ORQJYLVLRQHG%XWLQWKHJDWKHULQJDQ[LHWLHVDFURVVWKHHQWLUH(PSLUH
WUDGLWLRQDOF\EHUQHWLFSURWRFROVZHUHEUHDNLQJGRZQ/LNHHYHU\WKLQJHOVH
'RUVVWRRG,PRSSRVHG:HPXVWVWRSWKLVDWRQFH
<XJRURVH WRRVWDUWOHG<RXKHOSHGPHILQGWKHVLPV1RZ\RX
,GLGQRWLQWHQGWKLV+HUIDFHWLJKWHQHG+DULZRQGHUHGDWKHU
LQWHQVLW\6RPHWKLQJHOVHZDVDWVWDNHKHUHEXWZKDW"+HVDLGPLOGO\,VHH
QRUHDVRQWRQRWPDNHDELWRISURILWIURPVLGHDYHQXHVRIRXUUHVHDUFK$QG
ZHGRQHHGLQFUHDVHGFRPSXWLQJFDSDFLW\
'RUVPRXWKZRUNHGZLWKLUULWDWLRQEXWVKHVDLGQRWKLQJPRUH+DUL
ZRQGHUHGZK\VKHZDVVRRSSRVHG8VXDOO\\RXGRQWJLYHDGDPQDERXWVRFLDO
FRQYHQWLRQV
6KHVDLGDFLGO\8VXDOO\\RXDUHQRWDFDQGLGDWHIRU)LUVW0LQLVWHU
,ZLOOQRWOHWVXFKFRQVLGHUDWLRQVGHIOHFWRXUUHVHDUFKKHVDLG
ILUPO\8QGHUVWDQG"
6KHQRGGHGDQGVDLGQRWKLQJ+HLQVWDQWO\IHOWOLNHDQRYHUEHDULQJ
W\UDQW7KHUHZDVDOZD\VDSRWHQWLDOFRQIOLFWEHWZHHQEHLQJFRZRUNHUVDQG
ORYHUV8VXDOO\WKH\ZDOW]HGDURXQGWKHSUREOHPV:K\ZDVVKHVRDGDPDQW"
7KH\JRWWKURXJKVRPHPRUHZRUNRQSV\FKRKLVWRU\DQG'RUVPHQWLRQHGKLV
QH[WDSSRLQWPHQW6KHVIURPP\KLVWRU\GHSDUWPHQW,DVNHGKHUWRORRNLQWR
SDWWHUQVLQ7UDQWRULDQWUHQGVRYHUWKHODVWWHQPLOOHQQLD
2KJRRGWKDQNV&RXOG\RXVKRZKHULQSOHDVH"
6\OYLQ7KRUDQD[ZDVDVWULNLQJZRPDQEHDULQJDER[RIROGGDWD
S\UDPLGV,IRXQGWKHVHLQDOLEUDU\KDOIZD\DURXQGWKHSODQHWVKH
H[SODLQHG
+DULSLFNHGRQHXS,YHQHYHUVHHQRQHRIWKHVH'XVW\
)RUVRPHWKHUHVQROLEUDU\LQGH[,GRZQFRGHGDIHZDQGWKH\UH
JRRGVWLOOUHDGDEOHZLWKDWUDQVODWLRQPDWUL[
8PPP+DULOLNHGWKHPXVW\IHHORIROGWHFKQRORJ\IURPVLPSOHUWLPHV
:HFDQUHDGWKHVHGLUHFWO\"
6KHQRGGHG,NQRZKRZWKHUHGXFHG6HOGRQ(TXDWLRQVIXQFWLRQ<RX
VKRXOGEHDEOHWRGRDPDWFRPSDULVRQDQGILQGWKHFRHIILFLHQWV\RXQHHG
+DULJULPDFHG7KH\UHQRWP\HTXDWLRQVWKH\FRPHRXWRIDERG\RI
UHVHDUFKE\PDQ\
&RPHFRPH$FDGHPLFLDQHYHU\RQHNQRZV\RXZURWHGRZQWKHSURFHGXUHV
WKHDSSURDFK
+DULJURXVHGDOLWWOHPRUHEHFDXVHLWGLGLUNKLPEXWWKH7KRUDQD[
ZRPDQZHQWRQDERXWXVLQJWKHS\UDPLGVDQG<XJRMRLQHGLQHQWKXVLDVWLFDOO\DQG
KHOHWWKH SRLQWSDVV6KHZHQWRIIZLWK<XJRWRZRUNDQGKHVHWWOHGLQWRKLV
XVXDODFDGHPLFJULQG
+LVGDLO\VFKHGXOHKRYHUHGRQWKHKROR

*HW6\PSRVLDVSHDNHUVVZHHWHQWKHLQYLWDWLRQIRUWKHUHOXFWDQW

:ULWHQRPLQDWLRQVIRU,PSHULDO)HOORZV

5HDGVWXGHQWWKHVLVDIWHULWKDVEHHQFKHFNHG SDVVHGE\/RJLF&KRSSHU
SURJUDP
7KHVHEXUQHGXSWKHEXONRIKLVGD\2QO\ZKHQWKH&KDQFHOORUHQWHUHG
KLVRIILFHGLGKHUHPHPEHUWKDWKHKDGSURPLVHGWRJLYHDVSHHFK7KH

&KDQFHOORUKDGDTXLFNLURQLFVPLOHDQGSXUVHGOLSVDUHVHUYHGJD]HWKH
VFKRODUVORRN<RXUGUHVV"KHDVNHGSRLQWHGO\
+DULIXPEOHGLQKLVRIILFHFORVHWIHWFKHGIRUWKWKHEDOORRQVOHHYHGDQG
DPSOHJLUWHGUREHDQGFKDQJHGLQWKHVLGHURRP+LVVHFUHWDU\KDQGHGKLPKLV
DOOSXUSRVHYLHZFXEHDVWKH\TXLFNO\OHIWWKHRIILFH:LWKWKH&KDQFHOORUKH
FURVVHGWKHPDLQVTXDUHKLV6SHFLDOVLQDQLQFRQVSLFXRXVIRUPDWLRQIRUHDQG
DIW$FURZGRIZHOOGUHVVHGPHQDQGZRPHQWUDLQHG'FDPHUDVDWWKHPRQH
SDQQLQJXSDQGGRZQWRJHWWKHIXOOHIIHFWRI WKH6WUHHOLQJEOXHDQG\HOORZ
VZLUOVWULSHV
+DYH\RXKHDUGIURP/DPXUN"
:KDWDERXWWKH'DKOLWHV"
'R\RXOLNHWKHQHZ6HFWRU3ULQFLSDO"'RHVLWPDWWHUWKDWVKHVD
WULVH[XDOLVW"
+RZDERXWWKHQHZKHDOWKUHSRUWV"6KRXOGWKH(PSHURUVHWH[HUFLVH
UHTXLUHPHQWVIRU7UDQWRU"
,JQRUHWKHP+DULVDLG
7KH&KDQFHOORUVPLOHGDQGZDYHGDWWKHFDPHUDV7KH\UHMXVWGRLQJ
WKHLUMRE
:KDWVWKLVDERXWH[HUFLVH"+DULDVNHG
$VWXG\IRXQGWKDWHOHFWURVWLPZKLOHVOHHSLQJGRHVQWGHYHORSPXVFOHV
DVZHOODVROGIDVKLRQHGH[HUFLVH
1RWVXUSULVLQJ+HKDGZRUNHGLQWKHILHOGVDVDER\DQGQHYHUOLNHG
WKHLGHDRIKDYLQJKLVH[HUWLRQVWLPPHGZKLOHKHVOHSW
$ZHGJHRIUHSRUWHUVSUHVVHGQHDUHUVKRXWLQJTXHVWLRQV
:KDWGRHVWKH(PSHURUWKLQN RIZKDW\RXVDLGWR/DPXUN"
,VLWWUXHWKDW\RXUZLIHGRHVQWZDQW\RXWREH)LUVW0LQLVWHU"
:KDWDERXW'HPHU]HO":KHUHLVKH"
:KDWDERXWWKH=RQDOGLVSXWHV"&DQWKH(PSLUHFRPSURPLVH"
$ZRPDQUXVKHGIRUZDUG+RZGR\RXH[HUFLVH"
+DULVDLGVDUGRQLFDOO\,H[HUFLVHUHVWUDLQWEXWKLVSRLQWVDLOHG
ULJKWSDVWWKHZRPDQZKRORRNHGDWKLPEODQNO\
$VWKH\HQWHUHGWKH*UHDW+DOO+DULUHPHPEHUHGWRIHWFKIRUWKWKHYLHZ
FXEHDQGKDQGLWWRWKHKDOOPDVWHU$IHZ'VDOZD\VPDGHDWDON SDVVPRUH
HDVLO\%LJFURZGKHQRWHGWRWKH&KDQFHOORUDVWKH\WRRNWKHLUSODFHVRQ
WKHVSHHFKEDOFRQ\DERYHWKHERZORIVHDWV
$WWHQGDQFHLVFRPSXOVRU\$OOFODVVPHPEHUVDUHKHUH7KH&KDQFHOORU
EHDPHGGRZQDWWKHPXOWLWXGH,ZDQWHGWREHVXUHZHORRNHGJRRGWRWKH
UHSRUWHUVRXWVLGH
+DULVPRXWKWZLVWHG+RZGRWKH\WDNHDWWHQGDQFH"
(YHU\RQHKDVDNH\HGVHDW2QFHWKH\VLWWKH\UHFRXQWHGLIWKHLU
LQERDUG,'PDWFKHVWKHVHDWLQGH[
$ORWRIWURXEOHMXVWWRJHWSHRSOHWRDWWHQG
7KH\PXVW,WVIRUWKHLURZQJRRG$QGRXUV
7KH\UHDGXOWVRUHOVHZK\OHWWKHPVWXG\DGYDQFHGVXEMHFWV"/HWWKHP
GHFLGHZKDWVJRRGIRUWKHP
7KH&KDQFHOORUVOLSVFRPSUHVVHGDVKHURVHWRGRWKHLQWURGXFWLRQ:KHQ
+DULJRWXSWRWDONKHVDLG1RZWKDW\RXUHRIILFLDOO\FRXQWHG,WKDQN\RX
IRULQYLWLQJPHDQGDQQRXQFHWKDWWKLVLVWKHHQGRIP\IRUPDODGGUHVV
$UXVWOHRIVXUSULVH+DULVJD]HVZHSWWKHKDOODQGKHOHWWKHVLOHQFH
EXLOG7KHQKHVDLGPLOGO\,GLVOLNHVSHDNLQJWRDQ\RQHZKRKDVQRFKRLFH
RYHUZKHWKHUWROLVWHQ1RZ,VKDOOVLWGRZQDQGDQ\RQHZLVKLQJWROHDYHPD\
GRVR
+HVDW7KHDXGLWRULXPEX]]HG$IHZJRWXSWROHDYH7KHRWKHUVWXGHQWV
ERRHGWKHP:KHQKHURVHWRVSHDNDJDLQWKH\FKHHUHG
+HKDGQHYHUKDGDQDXGLHQFHVRRQKLVVLGH+HPDGHWKHPRVWRILW
JLYLQJDULQJLQJWDONDERXWWKHIXWXUHRIPDWKHPDWLFV1RWRIWKHPRUWDO
(PSLUHEXWRIEHDXWLIXOHQGXULQJPDWKHPDWLFV



7KHZRPDQIURPWKH0LQLVWU\RI,QWHUORFNLQJ&XOWXUHVORRNHGGRZQKHU
QRVHDWKLPDQGVDLG2IFRXUVHZHPXVWKDYHFRQWULEXWLRQVIURP\RXUJURXS
+DULVKRRNKLVKHDGGLVEHOLHYLQJO\$VHQVR"
6KHDGMXVWHGKHUIRUPDOVXLWE\ZULJJOLQJLQKLVRIILFHVJXHVWFKDLU
7KLVLVDQDGYDQFHGSURJUDP$OOPDWKLVWVDUHFKDUJHGWRVXEPLW%RRQ
%HKHVWV
:HDUHFRPSOHWHO\XQTXDOLILHGWRFRPSRVH
,XQGHUVWDQG\RXUKHVLWDWLRQ<HWZHDWWKH0LQLVWU\IHHOWKHVHVHQVR
V\PSKRQLHVZLOOEHMXVWWKHWKLQJQHHGHGWRHQHUJL]HDZHOODQDUWIRUP
ZKLFKLVVKRZLQJOLWWOHSURJUHVV
,GRQWJHWLW
6KHEHJUXGJLQJO\JDYHKLPDFRPSOHWHO\XQFRQYLQFLQJVWLOWHGVPLOH7KH
ZD\ZHHQYLVLRQWKLVQHZVRUWRIVHQVRV\PSKRQ\WKHDUWLVWVWKHPDWKLVWV
WKDWLVZLOOWUDQVPRJULI\EDVLFVWUXFWXUHVRIWKRXJKWVXFKDV(XFOLGHDQ
FRQFHSWXDOHGLILFHVRUWUDQVILQLWHVHWWKHRU\IDEULFDWLRQV7KHVHZLOOEH
WUDQVODWHGE\DQDUWVWUDLQHU
:KLFKLV"
$FRPSXWHUILOWHUZKLFKGLVWULEXWHVFRQFHSWXDOSDWWHUQVLQWRDEURDG
VHOHFWLRQRIVHQVRU\DYHQXHV
+DULVLJKHG,VHH7KLVZRPDQKDGSRZHUDQGKHKDGWROLVWHQWRKHU
+LVSV\FKRKLVWRU\IXQGLQJZDVVHFXUHFRPLQJIURPWKH(PSHURUVSULYDWH
ODUJHVV%XWWKH6WUHHOLQJGHSDUWPHQWFRXOGQRWLJQRUHWKH,PSHULDO%RRQ%RDUG
RULWVODFNH\VVXFKDVWKHRQHEHIRUHKLP6XFKZDVERRQPDQVKLS
)DUIURPEHLQJUHOD[HGPHGLWDWLYHJURYHVRITXLHWLQTXLU\UHVHDUFK
XQLYHUVLWLHVZHUHLQWHQVHFRPSHWLWLYHKLJKSUHVVXUHPDUDWKRQV7KH
PHULWRFUDWVVFKRODUVDQGVFLHQWLVWVDOLNHSXWLQORQJKRXUVKDGVWUHVV
UHODWHGKHDOWKSUREOHPVKLJKGLYRUFHUDWHVDQGIHZRIIVSULQJ7KH\FXWXS
WKHLUUHVXOWVLQWRELWHVL]HGFKXQNVLQSXUVXLWRIWKH/HDVW3XEOLVKDEOH
8QLWVRWRPDJQLI\WKHLUOLVWVRISDSHUV
7RJDLQDERRQIURPWKH,PSHULDO2IILFHVRQHGLGWKHEDVLFODERU
)LOOLQJ2XW)RUPV+DULNQHZZHOOWKHEHZLOGHULQJPD]HRIFURVVOLQNHG
TXHVWLRQV/LVWDQGDQDO\]HW\SHDQGWH[WXUHRIIXQGLQJ(VWLPDWHIULQJH
EHQHILWV'HVFULEHNLQGRIODEDQGFRPSXWHUHTXLSPHQWQHHGHG FDQH[LVWLQJ
UHVRXUFHVEHPRGLILHGWRVXLW" (OXFLGDWHSKLORVRSKLFDOVWDQFHRIWKH
SURSRVHGZRUN
7KH S\UDPLGRISRZHUPHDQWWKDWWKHPRVWH[SHULHQFHGVFKRODUVGLGOLWWOH
VFKRODUVKLS,QVWHDGWKH\PDQDJHGDQGSOD\HGWKHHQGOHVVJDPHVRI
ERRQVPDQVKLS7KH*UH\VJULPO\VDZWRLWWKDWQRER[ZHQWXQFKHFNHG$ERXWWHQ
SHUFHQWRIERRQSHWLWLRQVUHFHLYHGIXQGVDQGWKHQDIWHUWZR\HDUVGHOD\DQG
IRUDERXWKDOIWKHUHTXHVWHGPRQH\
:RUVHVLQFHWKHOHDGWLPHZDVVRJUHDWWKHUHZDVDSUHPLXPRQKLWWLQJ
WKHQDLOVTXDUHO\RQWKHKHDGZLWKHYHU\ERRQ7REHVXUHDVWXG\ZRXOGZRUN
PRVWRILWZDVGRQHEHIRUHZULWLQJWKHERRQSHWLWLRQ7KLVLQVXUHGWKDWWKHUH
ZHUHQRKROHVLQWKHSHWLWLRQQRXQH[SHFWHGVZHUYHVLQWKHZRUN
7KLVPHDQWVFKRODUVKLSDQGUHVHDUFKKDGEHFRPHPRVWO\VXUSULVHIUHHDV
ZHOO1RRQHVHHPHGWRQRWLFHWKDWWKLVUREEHGWKHPRIWKHLUFHQWUDOMR\WKH
H[FLWHPHQWRIWKHXQH[SHFWHG
,ZLOOVSHDNWRP\GHSDUWPHQW2UGHUWKHPWRGRLWZRXOGKDYHEHHQ
PRUHKRQHVW%XWRQHGLGWU\WRSUHVHUYHWKHDPHQLWLHV
:KHQVKHKDGOHIW'RUVFDPHLQWRKLVRIILFHLPPHGLDWHO\ZLWK<XJR
ULJKWEHKLQG,ZLOOQRWZRUNZLWKWKHVHVKHVDLGH\HVIODULQJ
+DULVWXGLHGWZRODUJHEORFNVRIZKDWVHHPHGWREHVWRQH<HWWKH\FRXOG
QRWEHWKDWKHDY\IRU<XJRFUDGOHGRQHLQHDFKRSHQSDOP7KHVLPV"KH
JXHVVHG

,QIHUULWHFRUHV<XJRVDLGSURXGO\6WXFNGRZQLQDUDWVZDUUHQRQ
DSODQHWQDPHG6DUN
7KHZRUOGZLWKWKDW1HZ5HQDLVVDQFHPRYHPHQW"
<HDKNLQGDFUD]\GHDOLQZLWKWKHP,JRWWKHVLPVWKRXJK7KH\MXVW
FDPHLQ:RUP([SUHVV7KHZRPDQLQFKDUJHWKHUHD%XWD)\UQL[ZDQWVWRWDON
WR\RX
,VDLG,GLGQWZDQWWREHLQYROYHG
3DUWRIWKHGHDOLVVKHJHWVDIDFHWRIDFH
+DULEOLQNHGDODUPHG6KHGFRPHDOOWKHZD\KHUH"
1REXWWKH\UHSD\LQIRUDWLJKWEHDP6KHVVWDQGLQE\,YHURXWHG
KHUWKURXJK-XVWSXQFKIRUWKHOLQN
+DULKDGWKHGLVWLQFWIHHOLQJWKDWKHZDVEHLQJKXVWOHGLQWRVRPHWKLQJ
ULVN\IDUEH\RQGWKHOLPLWVRIKLVRUGLQDU\FDXWLRQ7LJKWEHDPWLPHZDV
H[SHQVLYHEHFDXVHWKH,PSHULDOZRUPKROHV\VWHPKDGEHHQLPSDFWHGZLWKIORZ
IRUPLOOHQQLD8VLQJLWIRUDIDFHWRIDFHZDVVLPSO\GHFDGHQWKHIHOW,I
WKLV)\UQL[ZRPDQZDVSD\LQJIRUJDODFWLFVFDOHVWDQGE\WLPHMXVWWRFKDW
ZLWKDPDWKLVW
6SDUHPHIURPWKHHQWKXVHG+DULWKRXJKW:HOODOOULJKW
%XWD)\UQL[ZDVDWDOOKRWH\HGZRPDQZKRVPLOHGEULJKWO\DVKHULPDJH
EORVVRPHGLQWKHRIILFH3URIHVVRU6HOGRQ, ZDVVRKDSS\WKDW\RXUVWDIIKDV
WDNHQDQLQWHUHVWLQRXU1HZ5HQDLVVDQFH
:HOODFWXDOO\,JDWKHULWVDERXWWKRVHVLPXODWLRQV)RURQFHKH
ZDVJUDWHIXOIRUWKHWZRVHFRQGGHOD\LQWUDQVPLVVLRQ7KHELJJHVWZRUPKROH
PRXWKZDVDOLJKWVHFRQGIURP7UDQWRUDQGDSSDUHQWO\6DUNKDGDERXWWKHVDPH
2IFRXUVH:HIRXQGWUXO\DQFLHQWDUFKLYHV2XUSURJUHVVLYHPRYHPHQW
KHUHLVNQRFNLQJRYHUWKHROGEDUULHUV\RXOOILQG
,KRSHWKHUHVHDUFKZLOOSURYHLQWHUHVWLQJ+DULVDLGQHXWUDOO\+RZ
GLG<XJRJHWKLPLQWRWKLV"
:HUHWXUQLQJXSWKLQJVWKDWZLOORSHQ\RXUH\HV'U6HOGRQ6KH
WXUQHGDQGJHVWXUHGDWWKHVFHQHEHKLQGKHUDODUJHZDUUHQFUDPPHGZLWK
DQFLHQWFHUDPRVWRUDJHUDFNV:HUHKRSLQJWREORZWKHOLGRIIWKHZKROH
TXHVWLRQRISUH(PSLUHRULJLQVWKH(DUWKOHJHQGWKHZRUNV
,DK,ZLOOEHYHU\KDSS\WRVHHZKDWUHVXOWV
<RXYHJRWWRFRPHDQGVHHLWIRU\RXUVHOI$PDWKLVWOLNH\RXZLOOEH
LPSUHVVHG2XU5HQDLVVDQFHLVMXVWWKHVRUWRIIRUZDUGORRNLQJHQWHUSULVHWKDW
\RXQJYLJRURXVSODQHWVQHHG'RVD\\RXOOSD\XVDYLVLWDVWDWHYLVLWZH
KRSH
$SSDUHQWO\WKHZRPDQZDQWHGWRLQYHVWLQDIXWXUH)LUVW0LQLVWHU,W
WRRNKLPPRUHXQEHDUDEOHPLQXWHVWRJHWDZD\IURPKHU+HJORZHUHGDW<XJR
ZKHQDWODVWKHULPDJHZLOWHGLQWKHDLU
+H\,JRWXVDJRRGGHDOSURYLGLQJVKHJRWWRGRDOLOVHOOMRERQ
\RX<XJRVDLGVSUHDGLQJKLVKDQGV
$WFRQVLGHUDEOHXQGHUWKHWDEOHFRVW,KRSH"+DULDVNHGJHWWLQJXS
&DUHIXOO\KHSXWDKDQGRQRQHFXEHDQGIRXQGLWVXUSULVLQJO\FRRO:LWKLQLWV
VKDGRZ\LQWHULRUKHFRXOGVHHODE\ULQWKVRIODWWLFHVDQGZLQGLQJULEERQVRI
UHIUDFWHGOLJKWOLNHWLQ\KLJKZD\VWKURXJKDVRPEHUFLW\
6XUH<XJRVDLGZLWKFDVXDODVVXUDQFH*RWVRPH'DKOLWHVWRDK
PDVVDJHWKHPDWWHU
+DULFKXFNOHG,GRQWWKLQN,VKRXOGKHDUDERXWLW
$V)LUVW0LQLVWHU\RXPXVWQRW'RUVVDLG
,DPQRW)LUVW0LQLVWHU
<RXFRXOGEHDQGVRRQ7KLVVLPXODWLRQPDWWHULVWRRULVN\$QG\RX
HYHQVSRNHWRWKH6DUNVRXUFH,ZLOOQRWZRUNRQRUZLWKWKHP
<XJRVDLGPLOGO\1RERG\VDVNLQ\RXWR
+DULUXEEHGWKHFRROVOLFNVXUIDFHRIDIHUULWHEORFNKHIWHGLWTXLWH
OLJKWDQGWRRNWKHWZRIURP<XJR+HSXWWKHPRQKLVGHVN+RZROG"
<XJRVDLG6DUNVD\VWKH\GXQQREXWPXVWEHDWOHDVW

'RUVPRYHGVXGGHQO\6KH\DQNHGXSWKHEORFNVRQHLQHDFKKDQGWXUQHG
WRWKHQHDUHVWZDOODQGVPDVKHGWKHPWRJHWKHU7KHFUDVKZDVGHDIHQLQJ
&KXQNVRIIHUULWHVPDFNHGDJDLQVWWKHZDOO*UDLQVRIGHEULVVSDWWHUHG+DULV
IDFH
'RUVKDGDEVRUEHGWKHH[SORVLRQ7KHVWRUHGHQHUJ\LQWKHEORFNVKDG
HUXSWHGDVWKHODWWLFHFUDFNHG
,QWKHVXGGHQVLOHQFHDIWHUZDUG'RUVVWRRGDGDPDQWO\ULJLGKDQGV
FRYHUHGZLWKJUDLQ\GXVW+HUKDQGVZHUHEOHHGLQJDQGVKHKDGDFXWRQKHU
OHIWFKHHN6KHJD]HGVWUDLJKWDWKLP,DPFKDUJHGZLWK\RXUVDIHW\
<XJRGUDZOHG6XUHDIXQQ\ZD\WRVKRZLW
,KDGWRSURWHFW\RXIURPDSRWHQWLDOO\
%\GHVWUR\LQJDQDQFLHQWDUWLIDFW"+DULGHPDQGHG
,VPRWKHUHGQHDUO\DOOWKHHUXSWLRQPLQLPL]LQJ\RXUULVN%XW\HV,
GHHP WKLV6DUNLQYROYHPHQWDV
,NQRZ,NQRZ+DULUDLVHGKLVKDQGVSDOPVWRZDUGKHUUHFDOOLQJ
7KHQLJKWEHIRUHKHKDGFRPHKRPHIURPKLVUDWKHUZHOOUHFHLYHGVSHHFK
WRILQG'RUVPRRG\DQGZLWKGUDZQ7KHLUEHGKDGEHHQDUDWKHUFKLOO\
EDWWOHJURXQGWRRWKRXJKVKHZRXOGQRWFRPHRXWDQGVD\ZKDWKDGLUNHGKHU
VR:LQQLQJWKURXJKZLWKGUDZDO+DULKDGRQFHWHUPHGLW%XWKHKDGQRLGHD
VKHIHOWWKLVGHHSO\
0DUULDJHLVDYR\DJHRIGLVFRYHU\WKDWQHYHUHQGVKHWKRXJKWUXHIXOO\
,PDNHGHFLVLRQVDERXWULVNKHVDLGWRKHUH\HLQJWKHUXEEOHLQKLV
RIILFH<RXZLOOREH\WKHPXQOHVVWKHUHLVDQREYLRXVSK\VLFDOGDQJHU
8QGHUVWDQG"
,PXVWXVHP\MXGJPHQW
1R,QYROYHPHQWZLWKWKHVH6DUNLDQVLPXODWLRQVPD\WHDFKXVDERXW
VKDGRZ\DQFLHQWWLPHV7KDWFRXOGDIIHFWSV\FKRKLVWRU\+HZRQGHUHGLIVKH
ZHUHFDUU\LQJRXWDQRUGHUIURP2OLYDZ:K\ZRXOGWKHURERWVFDUHVRVWURQJO\"
:KHQ\RXDUHSODLQO\LPSHULOLQJ
<RXPXVWOHDYHSODQQLQJDQGSV\FKRKLVWRU\WRPH
6KHEDWWHGKHUH\HODVKHVUDSLGO\SXUVHGKHUOLSVRSHQHGKHU
PRXWKDQGVDLGQRWKLQJ)LQDOO\VKHQRGGHG+DULOHWRXWDVLJK
7KHQKLVVHFUHWDU\UXVKHGLQIROORZHGE\WKH6SHFLDOVDQGWKHVFHQH
GLVVROYHGLQWRDFKDRVRIH[SODQDWLRQV+HORRNHGWKH6SHFLDOVFDSWDLQ
VWUDLJKWLQWKHIDFHDQGVDLGWKDWWKHIHUULWHFRUHVKDGVRPHKRZIDOOHQLQWR
HDFKRWKHUDQGDSSDUHQWO\VWUXFNVRPHZHDNIUDFWXUHSRLQW
7KH\ZHUHKHH[SODLQHGPDNLQJLWXSDVKHZHQWDORQJZLWKDYRLFHRI
SURIHVVRULDODXWKRULW\KHKDGPDVWHUHGORQJDJRIUDJLOHVWUXFWXUHVZKLFKXVHG
WHQVLRQWRVWDELOL]HWKHPVHOYHVKROGLQJLQYDVWVWRUHVRIPLFURVFRSLF
LQIRUPDWLRQ
7RKLVUHOLHIWKHFDSWDLQMXVWVFUHZHGXSKLVIDFHORRNHGDURXQGDWWKH
PHVVDQGVDLG,VKRXOGQHYHUKDYHOHWROGWHFKOLNHWKLVLQKHUH
1RW\RXUIDXOW+DULUHDVVXUHGKLP,WVDOOPLQH
7KHUHZRXOGKDYHEHHQPRUHSUHWHQGLQJWRGREXWDPRPHQWODWHUKLVKROR
UDQJZLWKDUHFHSWLRQ+HJOLPSVHG&OHRQVSHUVRQDORIILFHUEXWEHIRUHWKH
ZRPDQFRXOGVSHDNWKHVFHQHGLVVROYHG+HVODSSHGKLVILOWHUIDFHFRPPDQGDV
&OHRQVLPDJHFRDOHVFHGLQWKHDLURXWRIDFRWWRQ\IRJ
,KDYHVRPHEDGQHZVWKH(PSHURUVDLGZLWKRXWDQ\JUHHWLQJ
$KVRUU\WRKHDUWKDW+DULVDLGODPHO\
%HORZ&OHRQVYLVLRQKHFDOOHGXSDVXLWHRIERG\ODQJXDJHSRVWXUHVDQG
KRSHGWKH\ZRXOGFRYHUWKHIHUULWHGXVWFOLQJLQJWRKLVWXQLF7KHUHGIUDPH
WKDWVWLWFKHGDURXQGWKHKRORWROGKLPWKDWDVXLWDEO\GLJQLILHGIDFHZRXOGJR
RXWNH\HGZLWKKLVOLSPRYHPHQWV
7KH+LJK&RXQFLOLVVWXFNRQWKLVUHSUHVHQWDWLRQLVVXH&OHRQFKHZHG
DWKLVOLSLQLUULWDWLRQ8QWLOWKH\UHVROYHWKDWWKH)LUVW0LQLVWHUVKLS
ZLOOEHVHWDVLGH
,VHH7KHUHSUHVHQWDWLRQSUREOHP"

&OHRQEOLQNHGZLWKVXUSULVH<RXKDYHQWEHHQIROORZLQJLW"
7KHUHLVPXFKWRGRDW6WUHHOLQJ
&OHRQZDYHGDLULO\2IFRXUVHJHWWLQJUHDG\IRUWKHPRYH:HOO
QRWKLQJZLOOKDSSHQLPPHGLDWHO\VR\RXFDQUHOD[7KH'DKOLWHVKDYHORJMDPPHG
WKH*DODFWLFORZ&RXQFLO7KH\ZDQWDELJJHUYRLFHLQ7UDQWRUDQGLQWKH
ZKROHGDPQHGVSLUDO7KDW/DPXUNKDVVLGHGDJDLQVWWKHPLQWKH+LJK&RXQFLO
1RERG\VEXGJLQJ
,VHH
6RZHOOKDYHWRZDLWEHIRUHWKH+LJK&RXQFLOFDQDFW3URFHGXUDO
PDWWHUVRIUHSUHVHQWDWLRQWDNHSUHFHGHQWRYHUHYHQPLQLVWHUVKLSV
2IFRXUVH
'DPQ&RGHV &OHRQHUXSWHG,VKRXOGEHDEOHWRKDYHZKR,ZDQW
,TXLWHDJUHH%XWQRWPH+DULWKRXJKW
:HOOWKRXJKW\RXGOLNHWRKHDULWIURPPH
,GRDSSUHFLDWHWKDWVLUH
,YHJRWVRPHWKLQJVWRGLVFXVVWKDWSV\FKRKLVWRU\HVSHFLDOO\,P
EXV\ EXWVRRQ
9HU\JRRGVLUH
&OHRQZLQNHGDZD\ZLWKRXWVD\LQJJRRGE\H
+DULEUHDWKHGDVLJKRIUHOLHI,PIUHHKHVKRXWHGKDSSLO\WKURZLQJ
KLVKDQGVXS
7KH6SHFLDOVVWDUHGDWKLPRGGO\+DULQRWLFHGDJDLQKLVGHVNDQGILOHV
DQGZDOOVDOO VSDWWHUHGZLWKEODFNJULW+LVRIILFHVWLOOORRNHGOLNH
SDUDGLVHWRKLPFRPSDUHGZLWKWKHOX[XULDQWVQDUHRIWKHSDODFH


7KHWULSLWOOEHZRUWKLWMXVWWRJHWRXWRI6WUHHOLQJ<XJRVDLG
7KH\HQWHUHGWKHJUDYVWDWLRQZLWKWKHLQHYLWDEOH6SHFLDOVWU\LQJWR
FDVXDOO\VWUROODORQJVLGH7R+DULVH\HWKH\ZHUHDVLQFRQVSLFXRXVDVVSLGHUV
RQDGLQQHUSODWH
7UXHHQRXJK+DULVDLG$W6WUHHOLQJ+LJK&RXQFLOPHPEHUVFRXOG
VROLFLWKLPSUHVVXUHJURXSVFRXOGSHQHWUDWHWKHPDNHVKLIWSULYDF\RIWKH 0DWK
'HSDUWPHQWDQGRIFRXUVHWKH(PSHURUFRXOGEORVVRPLQWKHDLUDWDQ\WLPH2Q
WKHPRYHKHZDVVDIH
*RRGFRQQHFWLRQFRPLQXSLQWZRSRLQWVL[PLQXWHV<XJRFRQVXOWHGKLV
UHWLQDOZULWHUE\ORRNLQJWRWKHIDUOHIW+DULKDGQHYHUOLNHGWKHGHYLFHV
EXWWKH\ZHUHDFRQYHQLHQWZD\RIUHDGLQJLQWKLVFDVHWKHJUDYVFKHGXOH
ZKLOHNHHSLQJERWKKDQGVIUHH<XJRZDVWRWLQJWZREDJV+DULKDGRIIHUHGWR
KHOSEXW<XJRVDLGWKH\ZHUHIDPLO\MHZHOVDQGQHHGHGFDUH
:LWKRXWEUHDNLQJVWULGHWKH\SDVVHGWKURXJKDQRSWLFDOUHDGHUZKLFK
FRQVXOWHGVHDWLQJELOOHGWKHLUDFFRXQWVDQGQRWLILHGWKHDXWRSURJUDPRIWKH
LQFUHDVHGPDVVORDG+DULZDVDELWGLVWUDFWHGE\VRPHIUHHIORDWLQJPDWK
LGHDVDQGVRWKHLUGURSVWDUWOHGKLP
2RSVKHVDLGFOXWFKLQJDW KLVDUPUHVWV)DOOLQJZDVWKHRQHVLJQDO
WKDWFRXOGLQWHUUXSWHYHQWKHGHHSHVWRIPHGLWDWLRQV+HZRQGHUHGKRZIDUEDFN
WKDWDODUPKDGHYROYHGDQGWKHQSDLGDWWHQWLRQWR<XJRDJDLQZKRZDV
HQWKXVLDVWLFDOO\GHVFULELQJWKH'DKOLWHFRPPXQLW\ZKHUHWKH\ZRXOGKDYHOXQFK
<RXVWLOOZRQGHULQDERXWWKDWSROLWLFDOVWXII"
7KHUHSUHVHQWDWLRQTXHVWLRQ",GRQWFDUHDERXWWKHLQILJKWLQJ
IDFWLRQVDQGVRRQ0DWKHPDWLFDOO\WKRXJKLWVDSX]]OH
6HHPVWRPHLWVSUHWW\FOHDU <XJRVDLGZLWKDVOLJKWWKRXJK
UHVSHFWIXOHGJHLQKLVYRLFH'DKOLWHVEHHQJHWWLQWKHVKRUWHQGIRUWRR
ORQJ
%HFDXVHWKH\KDYHRQO\RQH6HFWRUVYRWHV"
5LJKWDQGWKHUHDUHIRXUKXQGUHGPLOOLRQRIXVLQ'DKODORQH
$QGPRUHHOVHZKHUH

'DPQULJKW$YHUDJHGRYHU7UDQWRUD'DKOLWHKDVRQO\SRLQWVL[HLJKW
DVPXFKUHSUHVHQWDWLRQDVWKHRWKHUV
$QGWKURXJKRXWWKH*DOD[\
6DPHGDPQWKLQJ:HJRWRXU=RQHVXUHEXWH[FHSWLQWKH*DODFWLF/RZ
&RXQFLOZHUHER[HGLQ
<XJRKDGFKDQJHGIURPWKHFKDWWHULQJIULHQGRXWRQDODUNWRVREHUIDFHG
DQGVFRZOLQJ+DULGLGQWZDQWWKHWULSWRWXUQLQWRDQDUJXPHQW6WDWLVWLFV
UHTXLUHFDUH<XJR5HPHPEHUWKHFODVVLFMRNHDERXWWKUHHVWDWLVWLFLDQVZKR
WRRNXSKXQWLQJGXFNV
:KLFKDUH"
$JDPHELUGNQRZQRQVRPHZRUOGV7KHILUVWVKRWDPHWHUKLJKWKH
VHFRQGDPHWHUORZ:KHQWKLVKDSSHQHGWKHWKLUGVWDWLVWLFLDQFULHG:HJRW
LW
<XJRODXJKHGDELWGXWLIXOO\+DULZDVWU\LQJWRIROORZ'RUVDGYLFH
DERXWKDQGOLQJSHRSOHXVLQJKLVKXPRUPRUHDQGORJLFOHVV7KHLQFLGHQWZLWK
/DPXUNKDGUHERXQGHGLQ+DULVIDYRUDPRQJWKHPHGLDDQGHYHQWKH+LJK
&RXQFLOWKH(PSHURUKDGVDLG
'RUVKHUVHOIWKRXJKVHHPHGVLQJXODUO\LPPXQHWRERWKODXJKVDQGORJLF
WKHLQFLGHQWZLWKWKHIHUULWHFRUHVKDGSXWDVWUDLQLQWKHLUUHODWLRQVKLS
+DULUHDOL]HGQRZWKDWWKLVWRRZDVZK\KHKDGJUHHWHG<XJRVVXJJHVWLRQRI
DGD\DZD\IURP6WUHHOLQJ'RUVKDGWZRFODVVHVWRWHDFKDQGFRXOGQWJR6KH
KDGJUXPEOHGEXWFRQFHGHGWKDWWKH6SHFLDOVFRXOGSUREDEO\FRYHUKLPZHOO
HQRXJK$VORQJDVKHGLGQRWKLQJIRROLVK
<XJRSHUVLVWHG2ND\EXWWKHFRXUWVDUHVWDFNHGDJDLQVWXVWRR
'DKOLVWKHODUJHVW6HFWRUQRZ<RXZLOOJHW\RXUMXGJHVKLSVLQWLPH
7LPHZHGRQWKDYH:HUHJHWWLQJVKXWRXWE\ EORFV
+DULGHHSO\GLVOLNHGWKHXVXDOFLUFXODUORJLFRISROLWLFDOJULSLQJVR
KHWULHGWRDSSHDOWR<XJRVPDWKLVWVLGH$OOMXGJLQJERGLHVDUHYXOQHUDEOH
WREORFFRQWUROP\IULHQG6XSSRVHDFRXUWKDGHOHYHQMXGJHV7KHQDFRKHVLYH
JURXSRIVL[FRXOGGHFLGHHYHU\UXOLQJ7KH\FRXOGPHHWVHFUHWO\DQGDJUHHWR
EHERXQGE\ZKDWDPDMRULW\RIWKHPWKLQNVWKHQYRWHDVDEORFLQWKHIXOO
HOHYHQ
<XJRVPRXWKWZLVWHGZLWKLUULWDWLRQ7KH+LJK7ULEXQDOVHOHYHQ
WKDWV\RXUSRLQWULJKW"
,WVDJHQHUDOSULQFLSOH(YHQVPDOOHUVFKHPHVFRXOGZRUNWRR6XSSRVH
IRXURIWKH+LJK7ULEXQDOPHWVHFUHWO\DQGDJUHHGWREHERXQGE\WKHLURZQ
EDOORW7KHQWKH\GYRWHDVDEORFDPRQJWKHRULJLQDOFDEDORIVL[7KHQIRXU
ZRXOGGHWHUPLQHWKHRXWFRPHRIDOOHOHYHQ
'DPQDOOLWVZRUVHWKDQ,WKRXJKW<XJRVDLG
0\SRLQWLVWKDWDQ\ILQLWHUHSUHVHQWDWLRQFDQEHFRUUXSWHG,WVD
JHQHUDOWKHRUHPDERXWWKHPHWKRG
<XJRQRGGHGDQGWKHQWR+DULVGLVPD\ODXQFKHGLQWRUHFLWLQJWKHZRHV
DQGKXPLOLDWLRQVYLVLWHG XSRQ'DKOLWHVDWWKHKDQGVRIWKHUXOLQJPDMRULWLHV
LQWKH7ULEXQDOWKH&RXQFLOVERWK+LJKDQG/RZWKH'LNWDW'LUHFWRU\
7KHHQGOHVVEXV\QHVVRIUXOLQJ:KDWDERUH
+DULUHDOL]HGWKDWKLVVW\OHRIWKRXJKWZDVDIDUFU\IURPWKHIHYHUHG
FDOFXODWLRQVRI<XJRDQGIXUWKHUVWLOOIURPWKHZLO\OLNHVRI/DPXUN+RZ
FRXOGKHKRSHWRVXUYLYHDVD)LUVW0LQLVWHU":K\FRXOGQWWKH(PSHURUVHH
WKDW"
+HQRGGHGSXWRQKLVPDVNRIWKRXJKWIXOOLVWHQLQJDQGOHWWKHZDOO
GLVSOD\VVRRWKHKLP7KH\ZHUHVWLOOSOXQJLQJGRZQWKHORQJF\FORLGDOFXUYHRI
WKHJUDYGURS
7KLVWLPHWKHQDPHZDVDSW0RVWORQJGLVWDQFHWUDYHORQ7UDQWRUZDVLQ
IDFWXQGHU7UDQWRUDORQJDFXUYHZKLFKOHWWKHLUFDUSOXQJHGRZQXQGHU
JUDYLW\DORQHVXVSHQGHGRQPDJQHWLFILHOGVDEDUHILQJHUVZLGWKIURPWKH
WXEHZDOOV)DOOLQJWKURXJKGDUNYDFXXPWKHUHZHUHQRZLQGRZV,QVWHDGWKH
ZDOOVTXLHWHGDQ\IHDUVRIIDOOLQJ

0DWXUHWHFKQRORJ\ZDVGLVFUHHWVLPSOHHDV\TXLHWVLQXRXVO\
FODVVLFDOHYHQIULHQGO\ZKLOHLWVXVHUHPDLQHGDVREYLRXVDVDKDPPHULWV
HIIHFWVDVHDV\DVD'%RWKLWDQGLWVXVHUKDGHGXFDWHGHDFKRWKHU
$IRUHVWVOLGE\DOODURXQGKLPDQG<XJR0DQ\RQ7UDQWRUOLYHGDPRQJ
WUHHVDQGURFNVDQGFORXGVDVKXPDQVRQFHKDG7KHHIIHFWVZHUHQRWUHDOEXW
WKH\GLGQWQHHGWREH:HDUHWKHZLOGQRZ+DULWKRXJKW+XPDQVVKDSHG
7UDQWRUVODE\ULQWKVWRTXLHWWKHLUGHHSVHWQHHGVVRWKHPLQGVH\HIHOW
LWVHOIIOLWWLQJWKURXJKDSDUN7HFKQRORJ\DSSHDUHGRQO\ZKHQFDOOHGIRUWK
OLNHPDJLFDOVSLULWV
6D\PLQGLI,NLOOWKLV"<XJRVTXHVWLRQEURNHWKURXJKKLVUHYHULH
7KHWUHHV"
<HDKWKHRSHQ\NQRZ
+DULQRGGHGDQG<XJRWKXPEHGLQDYLHZRIDPDOOZLWKQRJUHDWGLVWDQFHV
YLVLEOH0DQ\7UDQWRULDQVEHFDPHDQ[LRXVLQELJVSDFHVRUHYHQQHDULPDJHVRI
WKHP
7KH\KDGOHYHOHGRXWDQGVRRQEHJDQWRULVH+DULIHOWSUHVVHGEDFNLQWR
KLVFKDLUZKLFKFRPSHQVDWHGGHIWO\7KH\ZHUHPRYLQJDWKLJKYHORFLW\KH
NQHZEXWWKHUHZDVQRVLJQRILW6OLJKWSXOVHVRIWKHPDJQHWLFWKURDWDGGHG
LQFUHPHQWVRIYHORFLW\DVWKH\ URVHPDNLQJXSIRUWKHVOLJKWORVVHV
2WKHUZLVHWKHHQWLUHWULSWRRNQRHQHUJ\JUDYLW\JLYLQJDQGWKHQWDNLQJ
DZD\
:KHQWKH\HPHUJHGLQWKH&DUPRQGLDQ6HFWRUKLV6SHFLDOVGUHZLQFORVH
7KLVZDVQRHOLWHXQLYHUVLW\VHWWLQJ)HZEXLOGLQJVKHUHFRXOGEHVHHQDV
H[WHULRUVVRGHVLJQIRFXVHGRQLQWHULRUVSHFWDFOHWKUXVWLQJVORSHVDLU\
WUDQVHSWVVRDULQJWUXQNVRIZRUNHGPHWDODQGPXVFXODUILEHU%XWDPLGWKLV
VHUHQHDUFKLWHFWXUHPLOOLQJFURZGVMRVWOHGDQGIUHWWHGODSSLQJOLNHDQDQJU\
WLGH
$FURVVDQRYHUKHDGELNHSDGDVWHDG\VWUHDPRIF\FOLVWVKDXOHGWRZFDUV
-DPPLQJWKHLUQDUURZED\VZHUHEXON\DSSOLDQFHVJOLVWHQLQJVLGHVRIPHDW
ER[HVDQGOXPS\JRRGVDOOERXQGIRUQHDUE\FXVWRPHUV5HVWDXUDQWVZHUH
OLWWOHPRUHWKDQKRWSODWHVVXUURXQGHGZLWKWLQ\WDEOHVDQGFKDLUVDOO
VTXHH]HGLQWRWKHZDONZD\V%DUEHUVFRQGXFWHGEXVLQHVVLQWKHWKRURXJKIDUH
ZRUNLQJRQHHQGRIWKHFXVWRPHUZKLOHEHJJDUVPDVVDJHGWKHIHHWIRUDFRLQ
6HHPVEXV\+DULVDLGGLSORPDWLFDOO\DVKHFDXJKWWKHWDQJRI
'DKOLWHFRRNLQJ
<HDKGRQFKDORYHLW"
%HJJDUVDQGVWUHHWYHQGRUVZHUHPDGHLOOHJDOE\WKHODVW(PSHURU,
WKRXJKW
5LJKW+HJULQQHG'RQWZRUNZLWK'DKOLWHV:HYHPRYHGSOHQW\
SHRSOHLQWRWKLV6HFWRU&PRQ,ZDQWVRPHOXQFK
,WZDVHDUO\EXWWKH\DWHLQDVWDQGXSUHVWDXUDQWGUDZQLQE\WKH
RGRUV+DULWULHGDERPEHUZKLFKZULJJOHGLQWRKLVPRXWKWKHQH[SORGHG
LQWRDVPRN\GDUNWDVWHKHFRXOGQRWLGHQWLI\ILQDOO\IDGLQJLQWRD
ELWWHUVZHHWDIWHUWDVWH+LV6SHFLDOVORRNHGTXLWHXQHDV\VWDQGLQJDURXQGLQD
FURZGHGEXV\KXEEXE7KH\ZHUHDFFXVWRPHGWRPRUHUHJDOVXUURXQGLQJV
7KLQJVUHUHDOO\ERRPLQKHUH<XJRREVHUYHG+LVPDQQHUVKDGUHYHUWHG
WRKLVODERULQJGD\VDQGKHVSRNHZLWKKLVPRXWKKDOIIXOO
'DKOLWHVKDYHDJLIWIRUH[SDQVLRQ+DULVDLGGLSORPDWLFDOO\7KHLU
KLJKELUWKUDWHSXVKHGWKHPLQWRRWKHU6HFWRUVZKHUHWKHLUFRQQHFWLRQVWR
'DKOEURXJKWQHZLQYHVWPHQW+DULOLNHGWKHLUUHVWOHVVHQHUJ\LWUHPLQGHGKLP
RI+HOLFRQVIHZFLWLHV
+HKDGEHHQPRGHOLQJDOORI7UDQWRUWU\LQJWRXVHLWDVDVKUXQNHQ
YHUVLRQRIWKH(PSLUH0XFKRIKLVSURJUHVVKDGFRPHIURPXQOHDUQLQJ
FRQYHQWLRQDOZLVGRP0RVWHFRQRPLVWVVDZPRQH\DVVLPSOHRZQHUVKLSDEDVLF
OLQHDUSRZHUUHODWLRQVKLS%XWLWZDVDIOXLG+DULIRXQGVOLSSHU\DQGTXLFN
DOZD\VIORZLQJIURPRQHKDQGWRWKHQH[WDVLWJUHDVHGWKHPRPHQWXPRIFKDQJH
,PSHULDODQDO\VWVKDGPLVWDNHQDYDU\LQJIOX[IRUDVWDWLFFRXQWHU

7KH\ILQLVKHGDQG<XJRXUJHGKLPLQWRDJURXQGSRG7KH\IROORZHGD
FRPSOLFDWHGSDWKDOLYHZLWKQRLVHDQG VPHOOVDQGYLJRU+HUHRUGHUO\WUDIILF
GLVLQWHJUDWHG,QVWHDGRIPDNLQJDQHQWLUHOD\HURQHZD\ORFDOVWUHHWV
LQWHUVHFWHGDWDQJOHVDFXWHDQGREOLTXHVHOGRPUHFWDQJXODU<XJRVHHPHGWR
UHJDUGWUDIILFLQWHUVHFWLRQVDVUXGHLQWHUUXSWLRQV
7KH\VSHGE\EXLOGLQJVDWFORVHUDQJHVWRSSHGDQGJRWRXWIRUDZDON
WRDVOLGHZD\7KH6SHFLDOVZHUHULJKWEHKLQGDQGZLWKRXWDQ\WUDQVLWLRQ+DUL
IRXQGKLPVHOILQWKHPLGGOHRIFKDRV6PRNHHQYHORSHGWKHPDQGWKHDFULG
VWHQFKPDGHKLPDOPRVWYRPLW
7KH6SHFLDOVFDSWDLQVKRXWHGWRKLP6WD\GRZQ7KHQWKHPDQVKRXWHG
WRKLVPHQWRDUPZLWKDQDPRUSKLQH7KH\DOOEULVWOHGZLWKZHDSRQV
6PRNHSDOHGWKHRYHUKHDGSKRVSKRUV7KURXJKWKHPXJJ\KD]H+DULVDZD
VROLGZDOORISHRSOHKDPPHULQJWRZDUGWKHP7KH\FDPHRXWRIVLGHDOOH\VDQG
GRRUZD\VDQGDOOVHHPHGWREHDUGRZQRQKLP7KH6SHFLDOVILUHGDYROOH\LQWR
WKHPDVV6RPHZHQWGRZQ7KHFDSWDLQWKUHZDFDQLVWHUDQGJDVEORVVRPHG
IDUWKHUDZD\+HKDGMXGJHGLWH[SHUWO\DLUFLUFXODWLRQFDUULHGWKHIXPHV
LQWRWKHPREQRWWRZDUG+DUL
%XWDQDPRUSKLQHZDVQWJRLQJWRVWRSWKHP7ZRZRPHQUXVKHGE\+DUL
FDUU\LQJFREEOHVWRQHVULSSHGIURPWKHVWUHHW$WKLUGMDEEHGDW+DULZLWKD
NQLIHDQGWKHFDSWDLQVKRWKHUZLWKDGDUW7KHQPRUH'DKOLWHVUXVKHGDWWKH
6SHFLDOVDQG+DULFDXJKWZKDWWKH\ZHUHVKRXWLQJLQFRKHUHQWUDJHDJDLQVW
WLNWRNV
7KHLGHDVHHPHGVRXQOLNHO\WRKLPDWILUVWKHWKRXJKWKHFRXOGQRWKDYH
KHDUGULJKWO\7KDWGHIOHFWHGKLVDWWHQWLRQDQGZKHQKHORRNHGEDFNWRZDUG
WKHVWUHDPLQJFURZGWKHFDSWDLQZDVGRZQDQGDPDQZDVDGYDQFLQJKROGLQJD
NQLIH
:KDWDQ\RIWKLVKDGWRGRZLWKWLNWRNVZDVP\VWHULRXVEXW+DULGLGQRW
KDYHWLPHWRGRDQ\WKLQJH[FHSWVWHSWRWKHVLGHDQGNLFNWKHPDQVTXDUHO\LQ
WKHNQHH
$ERWWOHERXQFHGSDLQIXOO\RIIKLVVKRXOGHUDQGVPDVKHGRQWKHZDONZD\
$PDQZKLUOHGDFKDLQDURXQGDQGDURXQGDQGWKHQWRZDUG+DULVKHDG'XFN,W
ZKLVWOHGE\DQG+DULGRYHDWWKHPDQWDFNOLQJKLPVROLGO\7KH\ZHQWGRZQ
ZLWKWZRRWKHUVLQDVZHDULQJSXQFKLQJPDVV+DULWRRNDVOXJLQWKHJXW
+HUROOHGRYHUDQGJDVSHGIRUDLUDQGFOHDUO\RQO\DIHZIHHWDZD\VDZ
DPDQNLOODQRWKHUZLWKDORQJFXUYHGNQLIH
-DEVODVKMDE,WKDSSHQHGVLOHQWO\OLNHDGUHDP+DULJDVSHG
VKDNHQKLVZRUOGLQVORZPRWLRQ+HVKRXOGEHUHVSRQGLQJEROGO\KH NQHZ
WKDW%XWLWZDVVRRYHUZKHOPLQJ
DQGWKHQKHZDVVWDQGLQJZLWKQRPHPRU\RIJHWWLQJWKHUHZUHVWOLQJ
ZLWKDPDQZKRKDGQRWERWKHUHGZLWKEDWKLQJIRUTXLWHVRPHZKLOH
7KHQWKHPDQZDVJRQHDEUXSWO\\DQNHGDZD\E\WKHVHHWKHRIWKHFURZG
$QRWKHUVXGGHQMXPSDQG6SHFLDOVZHUHDOODURXQGKLP%RGLHVVSUDZOHG
OLIHOHVVRQWKHZDONZD\2WKHUVKHOGWKHLUEORRG\KHDGV6KRXWVWKXPSV
+HGLGQRWKDYHWLPHWRILJXUHRXWZKDWZHDSRQKDGGRQHWKDWWRWKHP
EHIRUHWKH6SHFLDOVZHUHZKLVNLQJKLPDQG<XJRDORQJDQGWKHZKROHLQFLGHQW
IOHGLQWRREVFXULW\OLNHDSURJUDPJOLPSVHGDQGLPSDWLHQWO\SDVVHGE\
7KHFDSWDLQZDQWHGWRUHWXUQWR6WUHHOLQJ(YHQEHWWHUWKHSDODFH
7KLVZDVQWDERXWXV+DULVDLGDVWKH\WRRNDVOLGHZD\
&DQWEHVXUHRIWKDWVLU


+DULEDWWHGDZD\DOOVXJJHVWLRQVWKDWWKH\GLVFRQWLQXHWKHLUMRXUQH\
7KHLQFLGHQWKDGDSSDUHQWO\EHJXQZKHQVRPHWLNWRNVPDOIHG
6RPHERG\DFFXVHG'DKOLWHVRIFDXVLQJLW<XJRUHODWHG6RRXUSHRSOH
VWRRGXSIRUWKHPVHOYHVDQGZHOOWKLQJVJRWRXWRIKDQG
(YHU\RQHQHDUWKHPZDVDOLYHZLWKH[FLWHPHQWIDFHVJORZLQJH\HVZKLWH

DQGGDUWLQJ+HWKRXJKWVXGGHQO\RIKLVIDWKHUVZU\VD\LQJ1HYHU
XQGHUHVWLPDWHWKHSRZHURIERUHGRP
,QKXPDQDIIDLUVVSLULWHGDFWLRQUHOLHYHGGU\WHGLXP+HUHPHPEHUHG
VHHLQJWZRZRPHQSXPPHOD6SRRNVODPPLQJDZD\DWWKHVSLQGO\EOHDFKHGZKLWH
PDQDVWKRXJKKHZHUHQRPRUHWKDQDUHVSRQVLYHH[HUFLVHPDFKLQH$VLPSOH
SKRELDDJDLQVWVXQOLJKWPHDQWWKDWKHZDVRIWKHKDWHG2WKHUDQGWKXVIDLU
JDPH
0XUGHUZDVDSULPDOXUJH(YHQWKHPRVWFLYLOL]HGIHOWWHPSWHGE\LWLQ
PRPHQWVRIUDJH%XWQHDUO\DOOUHVLVWHGDQGZHUHEHWWHUIRUWKHUHVLVWDQFH
&LYLOL]DWLRQZDVDGHIHQVHDJDLQVWQDWXUHVUDZSRZHU
7KDWZDVDFUXFLDOYDULDEOHRQHQHYHUFRQVLGHUHGE\WKHHFRQRPLVWVZLWK
WKHLUJURVVSURGXFWVSHUFDSLWDRUWKHSROLWLFDOWKHRULVWVZLWKWKHLU
UHSUHVHQWDWLYHTXRWLHQWVRUWKHVRFLRVDYDQWVDQGWKHLUVHFXULW\LQGLFHV
,OOKDYHWRNHHSWKDWLQWRRKHPXWWHUHGWRKLPVHOI
.HHSZKDW"<XJRDVNHG+HWRRZDVVWLOODJLWDWHG
7KLQJVDVEDVLFDVPXUGHU:HJHWDOOWLHGXSLQ7UDQWRUVHFRQRPLFV
DQGSROLWLFVEXWVRPHWKLQJDVJXWGHHSDVWKDWLQFLGHQWPD\EHPRUH
LPSRUWDQWLQWKHORQJUXQ
:HOOSLFNLWXSLQWKHFULPHVWDWLVWLFV
1RLWVWKHXUJH,ZDQWWRJHW+RZGRHVWKDWH[SODLQWKHGHHSHU
PRYHPHQWVLQKXPDQFXOWXUH",WVEDGHQRXJKGHDOLQJZLWK7UDQWRUDJLDQW
SUHVVXUHFRRNHUIRUW\ELOOLRQVHDOHGLQWRJHWKHU:HNQRZWKHUHVVRPHWKLQJ
PLVVLQJEHFDXVHZHFDQWJHWWKH SV\FKRKLVWRULFDOHTXDWLRQVWRFRQYHUJH
<XJRIURZQHG,ZDVWKLQNLQLWZDVZHOOWKDWZHQHHGHGPRUHGDWD
+DULIHOWWKHROGIDPLOLDUIUXVWUDWLRQ1R,FDQIHHOLW7KHUHV
VRPHWKLQJFUXFLDODQGZHGRQWKDYHLW
<XJRORRNHGGRXEWIXODQGWKHQWKHLURIIGLVNFDPH7KH\FKDQJHGWKURXJK
DFRQFHQWULFVHWRIFLUFXODWLQJVOLGHZD\VUHGXFLQJWKHLUYHORFLW\DQGHQGLQJ
LQDEURDGVTXDUH$QLPSUHVVLYHHGLILFHGRPLQDWHGWKHKLJKDLUVKDIWV
VOHQGHUFROXPQVEORRPLQJLQWRRIILFHVDERYH6XQOLJKWWULFNOHGGRZQWKH
VFXOSWHGIDFHVRIWKHEXLOGLQJWHOOLQJWDOHVRIPRQH\$UWLILFH$VVRFLDWHV
5HFHSWLRQZKLVNHGWKHPLQWRDVDQFWXPPRUHOX[XULRXVWKDQDQ\WKLQJDW
6WUHHOLQJ*UHDWURRP<XJRVDLGZLWKDZU\VODQWRIKLVKHDG
+DULXQGHUVWRRGWKLVFRPPRQDFDGHPLFUHIOHFWLRQ7HFKQLFDOZRUNHUV
RXWVLGHWKHXQLYHUVLW\V\VWHPHDUQHGPRUHDQGZRUNHGLQJHQHUDOO\EHWWHU
VXUURXQGLQJV1RQHRIWKDWKDGHYHUERWKHUHGKLP7KHLGHDRIXQLYHUVLWLHVDV
DKLJKFLWDGHOKDGZLWKHUHGDVWKH(PSLUHGHFOLQHGDQGKHVDZQRQHHGIRU
RSXOHQFHSDUWLFXODUO\XQGHUDQ(PSHURUZLWKDWDVWHIRULW
7KHVWDIIRI$UWLILFH$VVRFLDWHVUHIHUUHGWRWKHPVHOYHVDV$DQGVHHPHG
TXLWHEULJKW+HOHW<XJRFDUU\WKHFRQYHUVDWLRQDVWKH\VDWDURXQGDELJ
SROLVKHGSVHXGRZRRGWDEOHKHVWLOOSXOVHGZLWKWKH]HVWRIWKHHDUOLHU
YLROHQFH+DULVDWEDFNDQGPHGLWDWHGRQKLVVXUURXQGLQJVKLVPLQGUHWXUQLQJ
DVDOZD\VWRQHZIDFHWVZKLFKPLJKWEHDUXSRQSV\FKRKLVWRU\
7KHWKHRU\DOUHDG\KDGPDWKHPDWLFDOUHODWLRQVKLSVEHWZHHQWHFKQRORJ\
FDSLWDODFFXPXODWLRQDQGODERUEXWWKHPRVWLPSRUWDQWGULYHUSURYHGWREH
NQRZOHGJH$ERXWKDOIWKHHFRQRPLFJURZWKFDPHIURPWKHLQFUHDVHLQWKH
TXDOLW\RILQIRUPDWLRQDVHPERGLHGLQEHWWHUPDFKLQHVDQGLPSURYHGVNLOOV
EXLOGLQJHIILFLHQF\
)DLUHQRXJKDQGWKDWZDVZKHUHWKH(PSLUHKDGIDOWHUHG7KHLQQRYDWLYH
WKUXVWRIWKHVFLHQFHVKDGVORZO\JURXQGGRZQ7KH,PSHULDO8QLYHUVLWLHV
SURGXFHGILQHHQJLQHHUVEXWQRLQYHQWRUV*UHDWVFKRODUVEXWIHZWUXH
VFLHQWLVWV7KDWIDFWRUHGLQWRWKHRWKHUWLGHVRIWLPH
2QO\LQGHSHQGHQWEXVLQHVVHVVXFKDVWKLVKHUHIOHFWHGFRQWLQXHGWKH
PRPHQWXPZKLFKKDGGULYHQWKHHQWLUH(PSLUHIRUVRORQJ%XWWKH\ZHUH
ZLOGIORZHUVRIWHQFUXVKHGEHQHDWKWKHERRWRI,PSHULDOSROLWLFVDQGLQHUWLD
'U6HOGRQ"DYRLFHDVNHGDWKLV HOERZVWDUWOLQJ+DULRXWRIKLV
UXPLQDWLRQ+HQRGGHG

:HGRKDYH\RXUSHUPLVVLRQDVZHOO"
$KWRGRZKDW"
7RXVHWKHVH<XJRVWRRGDQGOLIWHGRQWRWKHWDEOHKLVWZRFDUU\
FDVHV+HXQ]LSSHGWKHPDQGWZRIHUULWHFRUHVVWRRGUHYHDOHG
7KH6DUNVLPVJHQWOHPHQ
+DULJDSHG,WKRXJKW'RUV
6PDVKHGHP"6KHWKRXJKWVRWRR,XVHGWZRROGZRUWKOHVVGDWDFRUHV
LQ\RXURIILFHWKDWGD\
<RXNQHZVKHZRXOG
,JRWWDUHVSHFWWKDWODG\TXLFNDQGVWURQJPLQGHGVKHLV<XJR
VKUXJJHG,ILJXUHGVKHPLJKWJHWDOLWWOHSURYRNHG
+DULVPLOHG6XGGHQO\KHNQHZWKDWKHKDGEHHQUHSUHVVLQJUHDODQJHUDW
'RUVIRUKHUKLJKKDQGHGDFW1RZKHUHOHDVHGLWLQDILWRIKHDUW\ODXJKWHU
:RQGHUIXO:LIHRUQRWWKHUHDUHOLPLWV
+HKRZOHGVRKDUGWHDUVVSUDQJWRKLVH\HV7KHJXIIDZVVSUHDGDURXQG
WKHWDEOHDQG+DULIHOWEHWWHUWKDQKHKDGLQZHHNV)RUDPRPHQWDOOWKH
QDJJLQJ8QLYHUVLW\GHWDLOVWKHPLQLVWHUVKLSHYHU\WKLQJIHOODZD\
7KHQZHGRKDYH\RXUSHUPLVVLRQ'U6HOGRQ"7RXVHWKHVLPV"D\RXQJ
PDQDWKLVHOERZDVNHGDJDLQ
2IFRXUVHWKRXJK,ZLOOZDQWWRNHHSFORVHWDEVRQVRPHDKUHVHDUFK
LQWHUHVWVRIPLQH:LOOWKDWEHSRVVLEOH0U"
0DUT+RIWL:HGEHKRQRUHGVLULI\RXFRXOGVSDUHWKHSURMHFWVRPH
WLPH ,OOGRP\EHVW
$QG,$\RXQJZRPDQVWRRGDWKLVRWKHUHOERZ6\E\OVKHVDLGDQG
VKRRNKDQGV7KH\ERWKDSSHDUHGTXLWHFRPSHWHQWQHDWDQGHIILFLHQW+DUL
SX]]OHGDWWKHORRNVERUGHULQJRQUHYHUHQFHWKH\JDYHKLP$IWHUDOOKHZDV
MXVWDPDWKLVWOLNHWKHP
7KHQKHODXJKHGDJDLQKHDUWLO\DFXULRXVO\OLEHUDWLQJEDUN+HKDG
MXVWWKRXJKWRIZKDWLWZRXOGEHOLNHWRWHOO'RUVDERXWWKHGDWDFRUHV
B
3$57
7+(526(0((76
7+(6&$/3(/

B
&20387$7,21$/5(35(6(17$7,21LWLVFOHDUWKDWH[FHSWIRURFFDVLRQDO
RXWEXUVWVWKHWDERRVDJDLQVWDGYDQFHGDUWLILFLDOLQWHOOLJHQFHVKHDG
WKURXJKRXWWKH(PSLUHWKURXJKWKHJUHDWVZHHSRIKLVWRULFDOWLPH7KLV
XQLIRUPLW\RIFXOWXUDORSLQLRQSUREDEO\UHIOHFWVWUDJHGLHVDQGWUDXPDVZLWK
DUWLILFLDOIRUPVIDU EDFNLQSUH(PSLUHDJHV7KHUHDUHUHFRUGVRIHDUO\
WUDQVJUHVVLRQVE\VHOIDZDUHSURJUDPVLQFOXGLQJWKRVHE\VLPVRUVHOI
RUJDQL]LQJVLPXODWLRQV$SSDUHQWO\WKHSUHDQFLHQWVHQMR\HGUHFUHDWLQJ
SHUVRQDOLWLHVRIWKHLURZQSDVWSHUKDSVIRULQVWUXFWLRQRU DPXVHPHQWRUHYHQ
UHVHDUFK1RQHRIWKHVHDUHNQRZQWRVXUYLYHEXWWDOHVSHUVLVWWKDWWKH\ZHUH
RQFHDKLJKDUW
2IGDUNHULPSOLFDWLRQDUHWKHQDUUDWLYHVZKLFKK\SRWKHVL]HVHOIDZDUH
LQWHOOLJHQFHVORGJHGLQERGLHVUHVHPEOLQJKXPDQ:KLOHORZRUGHUPHFKDQLFDO
IRUPVDUHFXVWRPDULO\DOORZHGWKURXJKRXWWKH(PSLUHWKHVHWLNWRNV
FRQVWLWXWHQRFRPSHWLWLRQZLWKKXPDQVVLQFHWKH\SHUIRUPRQO\VLPSOHDQG
RIWHQGLVDJUHHDEOHWDVNV


(1&<&/23(',$*$/$&7,&$

-RDQRI$UFZDNHQHGLQVLGHDQDPEHUGUHDP&RROEUHH]HVFDUHVVHGKHU

RGGQRLVHVUHYHUEHUDWHG6KHKHDUGEHIRUHVKHVDZ
DQGDEUXSWO\IRXQGKHUVHOIVLWWLQJRXWGRRUV6KHQRWHGWKLQJVRQHDWD
WLPHDVWKRXJKVRPHSDUWRIKHUVHOIZHUHFRXQWLQJWKHP
6RIWDLU%HIRUHKHUDVPRRWKURXQGWDEOH
3UHVVLQJDJDLQVWKHUDQXQVHWWOLQJZKLWHFKDLU,WVVHDWXQOLNHWKRVH
LQKHUKRPHYLOODJHRI'RPUHP\ZDVQRWKDQGKHZQRIZRRG,WVVPRRWK
VOLFNQHVVOHZGO\DSHGKHUFRQWRXUV6KHUHGGHQHG
6WUDQJHUV2QHWZRWKUHHZLQNLQJLQWREHLQJEHIRUHKHUH\HV
7KH\PRYHG3HFXOLDUSHRSOH6KHFRXOGQRWWHOOZRPDQIURPPDQH[FHSW
IRUWKRVHZKRVHSDQWDORRQVDQGWXQLFVRXWOLQHGWKHLULQWLPDWHSDUWV7KH
VSHFWDFOHZDVHYHQPRUHWKDQVKHGVHHQLQ&KLQRQDWWKHOHZGFRXUWRIWKH
*UHDWDQG7UXH.LQJ
7DON7KHVWUDQJHUVVHHPHGREOLYLRXVRIKHUWKRXJKVKHFRXOGKHDUWKHP
FKDWWHULQJLQWKHEDFNJURXQGDVGLVWLQFWO\DVVKHVRPHWLPHVKHDUGKHUYRLFHV
6KHOLVWHQHGRQO\ORQJHQRXJKWRFRQFOXGHWKDWZKDWWKH\VDLGKDYLQJQRWKLQJ
WRGRZLWKKROLQHVVRU)UDQFHZDVFOHDUO\QRWZRUWKKHDULQJ
1RLVH)URPRXWVLGH$QLURQULYHURIVHOIPRYLQJFDUULDJHVPXWWHUHGE\
6KHIHOWVXUSULVHDWWKLVWKHQVRPHKRZWKHHPRWLRQHYDSRUDWHG
$ORQJYLHZWHOHVFRSLQJLQ
3HDUO\PLVWVFRQFHDOHGGLVWDQWLYRU\VSLUHV)RJPDGHWKHPVHHPOLNH
PHOWLQJFKXUFKHV
:KDWZDVWKLVSODFH"
$YLVLRQSHUKDSVUHODWHGWRKHUEHORYHGYRLFHV&RXOGVXFKDSSDULWLRQV
EHKRO\"
6XUHO\WKHPDQDWDQHDUE\WDEOHZDVQRDQJHO+HZDVHDWLQJVFUDPEOHG
HJJVWKURXJKDVWUDZ
$QGWKHZRPHQXQFKDVWHIODJUDQWJDXG\FRUQXFRSLDVRIKLSDQGWKLJK
DQGEUHDVW6RPHGUDQNUHGZLQHIURPWUDQVSDUHQWJREOHWVGLIIHUHQWIURPDQ\
VKHGVHHQDWWKHUR\DOFRXUW
2WKHUVVHHPHGWRVXSIURPIORDWLQJFORXGVGHOLFDWHELOORZLQJPRXVVH
IRJV2QHPLVWUHHNLQJRIEHHIZLWKDWDQJ\/RLUHVDXFHSDVVHGQHDUKHU6KH
EUHDWKHGLQDQGIHOWLQDQLQVWDQWWKDWVKHKDGH[SHULHQFHGDPHDO
:DVWKLVKHDYHQ":KHUHDSSHWLWHVZHUHVDWLVILHGZLWKRXWODERUDQGWRLO"
%XWQR6XUHO\WKHILQDOUHZDUGZDVQRWVRVRFDUQDO$QG
SHUWXUELQJ$QGHPEDUUDVVLQJ
7KHILUHVRPHVXFNHGLQWRWKHLUPRXWKVIURPOLWWOHUHHGVWKRVHDODUPHG
KHU$FORXGRIVPRNHGULIWLQJKHUZD\IOXVKHGELUGVRISDQLFIURPKHUEUHDVW
DOWKRXJKVKHFRXOGQRWVPHOOWKHVPRNHQRUGLGLWEXUQKHUH\HVRUVHDUKHU
WKURDW
7KHILUHWKHILUHVKHWKRXJKWKHDUWIOXWWHULQJLQSDQLF:KDWKDG"
6KHVDZDEHLQJPDGHRIEUHDVWSODWHFRPLQJDWKHUZLWKDWUD\RIIRRG
DQGGULQNSRLVRQIURPHQHPLHVQRGRXEWWKHIRHVRI)UDQFHVKHWKRXJKWLQ
FKXUQLQJIULJKWVKHDWRQFHUHDFKHGIRUKHUVZRUG
%HZLWK\RXLQDPRPHQWWKHEUHDVWSODWHGWKLQJVDLGDVLWZKHHOHG
SDVWKHUWRDQRWKHUWDEOH,YHRQO\JRWIRXUKDQGV'RKDYHSDWLHQFH
$QLQQVKHWKRXJKW,WZDVVRPHNLQGRILQQWKRXJKWKHUHDSSHDUHGWR
EHQRZKHUHWRORGJH$QG\HVLWFDPHQRZVKHZDVVXSSRVHGWRPHHW
VRPHRQHDJHQWOHPDQ"
7KDWRQHWKHWDOOVNLQQ\ROGPDQPXFKROGHUWKDQ-DFTXHV'DUVKHU
IDWKHUWKHRQO\RQHEHVLGHVKHUVHOIDWWLUHGQRUPDOO\
6RPHWKLQJDERXWKLVGUHVVUHFDOOHGWKHIRSSLVKGDQGLHVDWWKH*UHDWDQG
7UXH.LQJVFRXUW+LVKDLUFXUOHGWLJKWLWVZKLWHQHVVVHWRIIE\DOLODF
ULEERQDWKLVWKURDW+HZRUHDSDLURIPLJQRQHWWHUXIIOHVZLWKQDUURZHGJLQJ
DORQJZDLVWFRDWRIEURZQVDWLQZLWKFRORUHGIORZHUVDQGVSRUWHGUHGYHOYHW
EUHHFKHVZKLWHVWRFNLQJVDQGFKDPRLVVKRHV
$VLOO\YDLQDULVWRFUDWVKHWKRXJKW$IRSDFFXVWRPHGWRFDUULDJHV
ZKRFRXOGQRWVRPXFKDVVLWDKRUVHPXFKOHVVGRKRO\EDWWOH

%XWGXW\ZDVDVDFUHGREOLJDWLRQ,I.LQJ&KDUOHVRUGHUHGKHUWR
DGYDQFHDGYDQFHVKHZRXOG
6KHURVH+HUVXLWRIPDLOIHOWVXUSULVLQJO\OLJKW6KHKDUGO\VHQVHG
WKHEHOWHGRQSURWHFWLYHOHDWKHUIODSVLQIURQWDQGEDFNQRUWKHWZRPHWDO
DUPSODWHVWKDWOHIWHOERZVIUHHWRZLHOGWKHVZRUG1RRQHSDLGWKHOHDVW
DWWHQWLRQWRWKHUXVWOHRIKHUPDLORUKHUIDLQWFODQN
$UH\RXWKHJHQWOHPDQ,DPWRPHHW"0RQVLHXU$URXHW"
'RQWFDOOPHWKDWKHVQDSSHG$URXHWLVP\IDWKHUVQDPHWKHQDPH
RIDQDXWKRULWDULDQSUXGHQRWPLQH1RRQHKDVFDOOHGPHWKDWLQ\HDUV
8SFORVHKHVHHPHGOHVVDQFLHQW6KHGEHHQPLVOHGE\KLVZKLWHKDLU
ZKLFKVKHQRZVDZZDVIDOVHDSRZGHUHGZLJVHFXUHGE\WKHOLODFULEERQXQGHU
KLVFKLQ
:KDWVKRXOG,FDOO\RXWKHQ"6KHVXSSUHVVHGWHUPVRIFRQWHPSWIRUWKLV
GDQG\URXJKZRUGVOHDUQHGIURPFRPUDGHVLQDUPVQRZERUQHE\GHPRQVWRKHU
WRQJXHVHGJHEXWQRWEH\RQG
3RHWWUDJHGLDQKLVWRULDQ+HOHDQHGIRUZDUGDQGZLWKDZLFNHGZLQN
ZKLVSHUHG,VW\OHP\VHOI9ROWDLUH)UHHWKLQNHU3KLORVRSKHUNLQJ
%HVLGHVWKH.LQJRI+HDYHQDQG+LVVRQ,FDOOEXWRQHPDQ.LQJ
&KDUOHV9,,RIWKH+RXVHRI9DORLV$QG,//FDOO\RX$URXHWXQWLOP\UR\DO
PDVWHUELGVPHGRRWKHUZLVH
0\GHDUSXFHO,H\RXU&KDUOHVLVGHDG
1R
+HJODQFHGDWWKHQRLVHOHVVFDUULDJHVSURSHOOHGE\LQYLVLEOHIRUFHVRQ
WKHVWUHHW6LWGRZQVLWGRZQ0XFKHOVHKDVSDVVHGDVZHOO'RKHOSPHJHW
WKDWGUROOZDLWHUVDWWHQWLRQ
<RXNQRZPH"/HGE\KHUYRLFHVVKH KDGFDVWRIIKHUIDWKHUVQDPHWR
FDOOKHUVHOI/D3XFHO,HWKH&KDVWH0DLG
,NQRZ\RXYHU\ZHOO1RWRQO\GLG\RXOLYHFHQWXULHVEHIRUHPH,
ZURWHDSOD\DERXW\RX$QG,KDYHFXULRXVPHPRULHVRIVSHDNLQJZLWK\RX
EHIRUHLQVRPHVKDGRZ\VSDFHV+HVKRRNKLVKHDGIURZQLQJ%HVLGHVP\
JDUPHQWVEHDXWLIXOQHVWFHSDV"\RXUHWKHRQO\IDPLOLDUWKLQJDERXWWKLV
SODFH<RXDQGWKHVWUHHWWKRXJK,PXVWVD\\RXUH\RXQJHUWKDQ,WKRXJKW
ZKLOHWKHVWUHHWKPPPVHHPVZLGHU\HWROGHU7KH\ILQDOO\JRWURXQGWR
SDYLQJLW
,,FDQQRWIDWKRP
+HSRLQWHGWRDVLJQWKDWERUHWKHLQQVQDPH$X['HX[0DJRWV
0DGHPRLVHOOH/HFRXYUHXUDIDPRXVDFWUHVVWKRXJKHTXDOO\NQRZQDVP\
PLVWUHVV+HEOLQNHG<RXUHEOXVKLQJKRZVZHHW
,NQRZQRWKLQJRIVXFKWKLQJV6KHDGGHGZLWKPRUHWKDQDWUDFHRI
SULGH,DPDPDLG
+HJULPDFHG:K\RQHZRXOGEHSURXGRIVXFKDQXQQDWXUDOVWDWH,FDQW
LPDJLQH
$V,FDQQRWLPDJLQHZK\\RXDUHVRGUHVVHG
0\WDLORUVZLOOEHPRUWDOO\RIIHQGHG%XWDOORZPHWRVXJJHVWWKDWLW
LV\RXP\GHDUSXFHOOHZKRLQ\RXULQVLVWHQFHRQGUHVVLQJOLNHDPDQZRXOG
GHSULYHFLYLOL]HGVRFLHW\RIRQHRILWVPRVWKDUPOHVVSOHDVXUHV
$QLQVLVWHQFH,PRVWGHDUO\SDLGIRUVKHUHWRUWHGUHPHPEHULQJKRZ
WKHELVKRSVEDGJHUHGKHUDERXWKHUPDOHDWWLUHDVUHOHQWOHVVO\DVWKH\
LQTXLUHGDIWHUKHUGLYLQHYRLFHV
$VLILQWKHDEVXUGDWWLUHPHPEHUVRIKHUVH[ZHUHUHTXLUHGWRZHDUVKH
FRXOGKDYHGHIHDWHGWKH(QJOLVKORYLQJGXNHDW2UOHDQV2UOHGWKUHHWKRXVDQG
NQLJKWVWRYLFWRU\DW-DUJHDXDQG0HXQJVXU/RLUH%HDXJHQF\DQG3DWD\
WKURXJKRXWWKDWVXPPHURIJORULRXVFRQTXHVWVZKHQOHGE\KHUYRLFHVVKH
FRXOGGRQRZURQJ
6KHEOLQNHGEDFNVXGGHQWHDUV$UXVKRIPHPRU\
'HIHDW7KHQWKHEORRGUHGGDUNQHVVRIORVWEDWWOHVKDGGHVFHQGHG
PXIIOLQJKHUYRLFHVZKLOHWKRVHRIKHU(QJOLVKORYLQJHQHPLHVJUHZVWURQJ

1RQHHGWRJHWWHVW\0RQVLHXU$URXHWVDLGJHQWO\SDWWLQJKHUNQHH
SODWH$OWKRXJK,SHUVRQDOO\ILQG\RXUDWWLUHUHSXOVLYH,ZRXOGGHIHQGWR
WKHGHDWK\RXUULJKWWRGUHVVDQ\ZD\\RXSOHDVH2UXQGUHVV+HH\HGWKH
QHDUWUDQVSDUHQWXSSHUJDUPHQWRIDIHPDOHLQQSDWURQQHDUE\
6LU
3DULVKDVQRWORVWLWVDSSHWLWHIRUILQHU\DIWHUDOO3DOHIUXLWRIWKH
JRGVGRQW\RXDJUHH"
1R,GRQRW7KHUHLVQRYLUWXHJUHDWHUWKDQFKDVWLW\LQZRPHQRULQ
PHQ2XU/RUGZDVFKDVWHDVDUHRXUVDLQWVDQGSULHVWV
3ULHVWVFKDVWH+HUROOHGKLVH\HV3LW\\RXZHUHQWDWWKHVFKRROP\
IDWKHUIRUFHGPHWRDWWHQGDVDER\<RXFRXOGKDYHVRLQIRUPHGWKH-HVXLWV
ZKRGDLO\DEXVHGWKHLULQQRFHQWFKDUJHV
,,FDQQRWEHOLHYH
$QGZKDWRIKLP"9ROWDLUHWDONHGULJKWRYHUKHUSRLQWLQJDWWKHIRXU
KDQGHGFUHDWXUHRQZKHHOVUROOLQJWRZDUGWKHP1RGRXEWVXFKDFUHDWXUHLV
FKDVWH,VLWWKHQYLUWXRXVWRR"
&KULVWLDQLW\)UDQFHLWVHOILVIRXQGHGRQ
,IFKDVWLW\ZHUHSUDFWLFHGLQ)UDQFHDVPXFKDVLWVSUHDFKHGWKHUDFH
ZRXOGEHH[WLQFW
7KHZKHHOHGFUHDWXUHEUDNHGE\WKHLUWDEOH6WDPSHGRQKLVFKHVWZDV
ZKDWDSSHDUHGWREHKLVQDPH*$5&21$'0,QDEDVVYRLFHDVFOHDUDVDQ\
PDQVKHVDLG$FRVWXPHSDUW\HK",KRSHP\GHOD\ZLOOQRWPDNH\RXODWH
2XUPHFKIRONDUHKDYLQJGLIILFXOWLHV
,WH\HGWKHRWKHUWLNWRNEULQJLQJGLVKHVIRUWKDKRQH\KDLUHGEORQGLQ
DKDLUQHWDSSUR[LPDWHO\KXPDQOLNH$GHPRQ"
7KH0DLGIURZQHG,WVMHUN\JODQFHHYHQWKRXJKPHFKDQLFDOUHFDOOHGWKH
ZD\KHUMDLOHUVKDGJDZNHGDWKHU+XPLOLDWHGVKHKDGFDVWDVLGHWKHZRPHQV
JDUPHQWVWKDWKHU,QTXLVLWRUVIRUFHGKHUWRZHDU5HVXPLQJPDQO\DWWLUHVKHG
VFRUQIXOO\SXWKHUMDLOHUVLQWKHLUSODFH,WKDGEHHQDILQHPRPHQW
7KHFRRNDVVXPHGDKDXJKW\ORRNEXWIXVVHGZLWKKHUKDLUQHWDQGVPLOHG
DW*DUFRQ$'0EHIRUHDYHUWLQJKHUH\HV7KHLPSRUWRIWKLVHOXGHG-RDQ
6KHKDGDFFHSWHGPHFKDQLFDOVLQWKLV VWUDQJHSODFHZLWKRXWTXHVWLRQLQJWKHLU
PHDQLQJ3UHVXPDEO\WKLVZDVVRPHLQWHUPHGLDWHVWDWLRQLQWKH/RUGV
SURYLGHQWLDORUGHU%XWLWZDVSX]]OLQJ
0RQVLHXU$URXHWUHDFKHGRXWDQGWRXFKHGWKHPHFKPDQVQHDUHVWDUPZKRVH
FRQVWUXFWLRQWKH0DLGFRXOGQRWKHOSEXWDGPLUH,IVXFKDFUHDWXUHFRXOGEH
PDGHWRVLWDKRUVHLQEDWWOHLWZRXOGEHLQYLQFLEOH7KHSRVVLELOLWLHV
:KHUHDUHZH"0RQVLHXU$URXHWDVNHG2USHUKDSV,VKRXOGDVNZKHQ",
KDYHIULHQGVLQKLJKSODFHV
$QG,LQORZWKHPHFKPDQVDLGJRRGQDWXUHGO\DQG,GHPDQGDIXOO
DFFRXQWRIZKHUHZHDUHZKDWVJRLQJRQ
7KHPHFKPDQVKUXJJHGZLWKWZRRIKLVIUHHDUPVZKLOHWKHWZRRWKHUVVHW
WKHWDEOH+RZFRXOGDPHFKZDLWZLWKLQWHOOLJHQFHSURJUDPPHGWRVXLWKLV
VWDWLRQLQVWUXFWPRQVLHXUDKXPDQEHLQJLQWKHYHLOHGP\VWHULHVRI
VLPVSDFH"+DYHPRQVLHXUDQGPDGHPRLVHOOHGHFLGHGRQWKHLURUGHU"
<RXKDYHQRW\HWEURXJKWXVWKHPHQXVDLG0RQVLHXU$URXHW
7KHPHFKPDQSXVKHGDEXWWRQXQGHUWKHWDEOH7ZRIODWVFUROOVHPEHGGHG
LQWKHWDEOHVKLPPHUHGOHWWHUVJORZLQJ7KH0DLGOHWRXWDVPDOOFU\RI
GHOLJKWWKHQLQUHVSRQVHWR0RQVLHXU$URXHWVFHQVRULRXVORRNFODSSHGKHU
KDQGRYHUKHUPRXWK+HUSHDVDQWPDQQHUVZHUHDIUHTXHQWVRXUFHRI
HPEDUUDVVPHQW
,QJHQLRXVVDLG0RQVLHXU$URXHWVZLWFKLQJWKHEXWWRQRQDQGRIIDVKH
H[DPLQHGWKHXQGHUVLGHRIWKHWDEOH+RZGRHVLWZRUN"
,PQRWSURJUDPPHGWRNQRZ<RXOOKDYHWRDVNDPHFKOHFWULFLDQDERXW
WKDW
$ZKDW"
:LWKDOOGXHUHVSHFW0RQVLHXUP\RWKHUFXVWRPHUVDUHZDLWLQJ,DP

SURJUDPPHGWRWDNH\RXURUGHU
:KDWZLOO\RXKDYHP\GHDU"0RQVLHXU$URXHWDVNHGKHU
6KHORRNHGGRZQHPEDUUDVVHG2UGHUIRUPHVKHVDLG
$K\HV,TXLWHIRUJRW
)RUJRWZKDW"DVNHGWKHPHFKPDQ
0\FRPSDQLRQLVXQOHWWHUHG6KHFDQWUHDG,PLJKWDVZHOOEHWRR
IRUDOOWKHJRRGWKLVPHQXVGRLQJPH
6RWKLVREYLRXVO\OHDUQHGPDQFRXOGQRWIDWKRPWKH7DEOHRI+RXVH-RDQ
IRXQGWKDWHQGHDULQJDPLGWKLVEOL]]DUGRIWKHEL]DUUH
7KHPHFKPDQH[SODLQHGDQG9ROWDLUHLQWHUUXSWHG
&ORXGIRRG"(OHFWURQLFFXLVLQH"+HJULPDFHG-XVWEULQJPHWKHEHVW
\RXKDYHIRUJUHDWKXQJHUDQGWKLUVW:KDWFDQ\RXUHFRPPHQGIRUDEVWLQHQW
YLUJLQVDSODWHRIGLUWSHUKDSV"&KDVHGZLWKDJODVVRIYLQHJDU"
%ULQJPHDVOLFHRIEUHDGWKH0DLGVDLGZLWKIURVW\GLJQLW\$QGD
VPDOOERZORIZLQHWRGLSLWLQ
:LQHVDLG0RQVLHXU$URXHW<RXUYRLFHVDOORZZLQH"0DLVTXHOOH
VFDQGDOH,IZRUGJRWRXWWKDW\RXGULQNZLQHZKDWZRXOGWKHSULHVWVVD\RI
WKHVKRGG\H[DPSOH\RXUHVHWWLQJIRUWKHIXWXUHVDLQWVRI)UDQFH"
+HWXUQHGWRWKHPHFKPDQ%ULQJKHUDJODVVRIZDWHUVPDOO$V*DUFRQ
$'0ZLWKGUHZ0RQVLHXU$URXHWFDOOHGRXW$QGPDNHVXUHWKHEUHDGLVD
FUXVW3UHIHUDEO\PROG\


0DUT+RIWLVWURGHVZLIWO\WRZDUGKLV:DOGRQ6KDIWRIILFHKLVFROOHDJXH
DQGIULHQG6\E\OFKDWWHULQJEHVLGHKLP6KHZDVDOZD\VHQHUJHWLFEULVWOLQJ
ZLWKLGHDV2QO\RFFDVLRQDOO\GLGKHUHQHUJ\VHHPWLUHVRPH
7KH$UWLILFH$VVRFLDWHVRIILFHVORRPHGZHLJKW\DQGLPSUHVVLYHLQWKH
LPPHQVHKLJKVKDIW$IOXWWHUJOLGHUFLUFOHGWKHSURWUXGLQJOHYHOVIDUDERYH
EDQNLQJDPRQJSUHWW\JUHHQFORXGV0DUTFUDQHGKLVQHFNXSZDUGDQGZDWFKHGWKH
JOLGHUFDWFKDQXSGUDIWRIWKHFLW\VSRZHUIXODLUFLUFXODWRUV$WPRVSKHULF
FRQWUROHYHQDGGHGWKHSXIIEDOOYDSRUVIRUYDULHW\+HORQJHGWREHXSWKHUH
VZRRSLQJDPRQJWKHLUVWLFN\IODYRUV
,QVWHDGKHZDVGRZQKHUHGRQQLQJKLVXVXDOFDUDSDFHRIHDFKGD\VD
FKDOOHQJHYLJRU$QGWRGD\ZDVJRLQJWREHXQXVXDO5LVN\$QGWKRXJKWKH]HVW
IRULWVDQJLQKLVVWULGHKLVJULQWKHIHDURIIDLOXUHJDYHDOHDGHQOLQLQJ
WRKLVPRVWEXR\DQWSODQV
,IKHIDLOHGWRGD\DWOHDVWKHZRXOGQRWWXPEOHIURPWKHVN\OLNHD
SLORWZKRPLVMXGJHGWKHWKHUPDOVLQWKHVKDIW*ULPO\KHHQWHUHGKLVRIILFH
,WPDNHVPHQHUYRXV6\E\OVDLGFXWWLQJLQWRKLVPRRG
8PP:KDW"+HGXPSHGKLVSDFNDQGVDWDWKLVRUQDWHFRQWUROERDUG
6KHVDWEHVLGHKLP7KHERDUGILOOHGKDOIWKHRIILFHPDNLQJKLVGHVN
ORRNOLNHDFOXWWHUHGDIWHUWKRXJKW7KH6DUNVLPV:HYHVSHQWVRPXFKWLPH
RQWKRVHUHVXUUHFWLRQSURWRFROVWKHVOLFHVDQGHPEHGGLQJVDQGDOO
,KDGWRILOOLQZKROHOD\HUVPLVVLQJIURPWKHUHFRUGLQJV6\QDSWLF
ZHEVIURPWKHDVVRFLDWLRQFRUWH[3OHQW\RIZRUN
,GLGWRR0\-RDQZDVPLVVLQJFKXQNVRIWKHKLSSRFDPSXV
3UHWW\WRXJK"7KHEUDLQUHPHPEHUHGWKLQJVXVLQJFRQVWHOODWLRQVRI
DJHQWVIURPWKHKLSSRFDPSXV7KH\ODLGGRZQORQJWHUPPHPRU\HOVHZKHUH
VSDWWHULQJSLHFHVRILWDURXQGWKHFHUHEUDOFRUWH[1RWQHDUO\DVFOHDQDQG
RUGHUO\DVFRPSXWHUPHPRU\ZKLFKZDVRQHRIWKHPDMRUSUREOHPV(YROXWLRQZDV
DNOXGJHPHFKDQLVPVFUDPPHGLQKHUHDQGWKHUHZLWKOLWWOHDWWHQWLRQWR
RYHUDOOGHVLJQ$WEXLOGLQJPLQGVWKH/RUGZDVVRPHWKLQJRIDQDPDWHXU
0XUGHU,VWD\HGWRPLGQLJKWIRU ZHHNV
0HWRR
'LG\RXXVHWKHOLEUDU\"+HFRQVLGHUHG$UWLILFH$VVRFLDWHVNHSW
GHQVHILOHVRIEUDLQPDSVDOOWDNHQIURPYROXQWHHUV7KHUHZHUHPHQXVIRU

VHOHFWLQJPHQWDODJHQWVVXEURXWLQHVZKLFKFRXOGFDUU\RXWWKHWDVNVZKLFK
P\ULDGV\QDSVHV GLGLQWKHEUDLQ7KHVHZHUHDOOQHDWO\WUDQVODWHGLQWR
GLJLWDOHTXLYDOHQWVVDYLQJJUHDWODERU%XWWRXVHWKHPPHDQWUXQQLQJXSELJ
ELOOVEHFDXVHHDFKZDVFRS\ULJKWHG1R*RWDSULYDWHVRXUFH
6KHQRGGHG0HWRR
:DVVKHWU\LQJWRFRD[DQDGPLVVLRQIURPKLP"7KH\KDGERWKKDGWRJR
WKURXJKVFDQQLQJDVSDUWRIJHWWLQJWKHLU0DVWHU&ODVVUDWLQJVLQWKH
PHULWRFUDF\0DUTKDGWKULIWLO\NHSWKLVVFDQ%HWWHUWKDQDEDFNDOOH\EUDLQ
PDSIRUVXUH+HZDVQRJHQLXVEXWWKHEDVLFVRI9ROWDLUHVXQGHUSLQQLQJV
ZHUHQWWKHLPSRUWDQWSDUWDIWHUDOO([DFWO\KRZWKHVLPUDQWKHKLQGEUDLQ
IXQFWLRQVEDVLFPDLQWHQDQFHKRXVHNHHSLQJFLUFXLWU\FHUWDLQO\FRXOGQW
PDWWHUFRXOGLW"
/HWVKDYHDORRNDWRXUFUHDWLRQV0DUTVDLGEULJKWO\WRJHWRIIWKH
VXEMHFW
6\E\OVKRRNKHUKHDG0LQHLVVWDEOH%XWORRNZHGRQWUHDOO\NQRZ
ZKDWWRH[SHFW7KHVHIXOO\LQWHJUDWHG3HUVRQDOLWLHVDUHVWLOOLVRODWHG
1DWXUHRIWKHEHDVW0DUTVKUXJJHGSOD\LQJWKHMDGHGSUR1RZWKDW
KLVKDQGVFDUHVVHGWKHERDUGWKRXJKDWLQJOLQJH[FLWHPHQWVHL]HGKLP
/HWVGRLWWRGD\VKHVDLGZRUGVUXVKLQJRXW
:KDW",,GOLNHWRVODSVRPHPRUHSDWFKHVRYHUWKHJDSVPD\EH
LQVWDOODUROOLQJEXIIHUDVLQVXUDQFHDJDLQVWFKDUDFWHUVKLIWVVS\LQWR
'HWDLOV/RRNWKHVHVLPVKDYHEHHQUXQQLQJRQLQWHUQDOVIRUZHHNVRI
VLPWLPHVHOILQWHJUDWLQJ/HWVLQWHUDFW
0DUTWKRXJKWRIWKHJOLGHUSLORWXSWKHUHDPLGWUHDFKHURXVZLQGV+H
KDGQHYHUGRQHDQ\WKLQJVRULVN\KHZDVQWWKHW\SH+LVNLQGRISHULOOD\RQ
WKHGLJLWDO SOD\LQJILHOG+HUHKHZDVPDVWHU
%XWKHKDGQRWJRWWHQWKLVIDUE\EHLQJIRROLVK/HWWLQJWKHVH
VLPXODWLRQVFRPHLQWRFRQWDFWZLWKWKHSUHVHQWPLJKWLQGXFHKDOOXFLQDWLRQVLQ
WKHPIHDUHYHQSDQLF
-XVWWKLQN7DONLQJWRSUHDQWLTXLW\
+HUHDOL]HGWKDWKHZDVWKHRQHIHHOLQJIHDU7KLQNOLNHDSLORWKH
DGPRQLVKHGKLPVHOI
:RXOG\RXZDQWDQ\RQHHOVHWRGRLW"6\E\ODVNHG
+HZDVNHHQO\DZDUHRIWKHIOHHWLQJZDUPWKRIKHUWKLJKDVLW
DFFLGHQWDOO\EUXVKHGKLV
1RRQHHOVHFRXOG KHDGPLWWHG
$QGLWOOSXWXVDKHDGRIDQ\FRPSHWLWLRQ
7KDWJX\6HOGRQKHFRXOGYHRQFHKHJRWWKHPIURPWKRVH6DUN1HZ
5HQDLVVDQFHMRNHUV8VLQJXVZHOO,JXHVVKHQHHGVWRJHWVRPHGLVWDQFH
IURPDGLFH\SURSRVLWLRQOLNHWKLV
3ROLWLFDO GLVWDQFHVKHDJUHHG'HQLDELOLW\
+HGLGQWVHHPWKDWVDYY\WRPHSROLWLFDOO\,PHDQ
0D\EHKHZDQWVXVWRWKLQNWKDW+RZGKHFKDUP&OHRQ"
%HDWVPH1RWWKDW,ZRXOGQWZDQWRQHRIRXUJX\VUXQQLQJWKLQJV$
PDWKLVWPLQLVWHUZKRGLPDJLQHWKDW"
6R$UWLILFH$VVRFLDWHVZDVRXWRQLWVRZQKHUH:LWKWKHLU6DUN
FRQWDFWVWKHFRPSDQ\KDGDOUHDG\GLVSODFHG'LJLWIDFDQG$[LRP$OOLDQFHLQWKH
VDOHDQGGHVLJQRIKRORJUDSKLFLQWHOOLJHQFHV&RPSHWLWLRQZDVURXJKLQVHYHUDO
SURGXFWOLQHVWKRXJK:LWKDSLSHOLQHWRWUXO\DQFLHQW3HUVRQDOLWLHVWKH\
FRXOGVZHHSWKHERDUGFOHDQ$WWKHNQLIHHGJHRIFKDQJH0DUTWKRXJKW
KDSSLO\'DQJHUDQGPRQH\WKHWZRJUHDWDSKURGLVLDFV
+HKDGVSHQW\HVWHUGD\HDYHVGURSSLQJRQ9ROWDLUHDQGZDVVXUH6\E\OKDG
GRQHWKHVDPHZLWKWKH0DLG(YHU\WKLQJKDGJRQHZHOO)DFHILOWHUVIRUXV
WKRXJK
'RQWWUXVW\RXUVHOIWRQRWJLYHDZD\\RXUIHHOLQJV"6\E\OJDYHKLPD
ZRPDQO\WKURDW\FKXFNOH7KLQN\RXUHWRRHDV\WRUHDG"
$P,"%DOOEDFNLQKHUFRXUW

/HWVVD\\RXULQWHQWLRQVDUHDWOHDVW
+HUVO\ZLQNPDGHKLVQRVWULOVIODUHZKLFKUHPLQGHG0DUTRIZK\KH
QHHGHGWKHILOWHUV+HWKXPEHGLQDQDPLDEOHH[SUHVVLRQKHKDGFDUHIXOO\
IDVKLRQHGIRUGHDOLQJE\SKRQHZLWKFOLHQWV+HKDGOHDUQHGHDUO\LQWKLV
EXVLQHVVWKDWWKHZRUOGZDVSDFNHGZLWKLUULWDEOHSHRSOH(VSHFLDOO\7UDQWRU
%HWWHUSXWDERG\ODQJXDJHUHILQHURQWRRVKHVDLGIODWO\DOO
EXVLQHVVQRZ7KDWZDVZKDWQHYHUFHDVHGWRLQWULJXHKLPDUWIXODPELJXLW\
6KHSRSSHGXSKHURZQILOWHUVLPSRUWHGLQVWDQWO\IURPKHUERDUGKDOIZD\
DFURVVWKHEXLOGLQJ:DQWDYRFDEXODU\ER["
+HVKUXJJHG$Q\WKLQJWKH\FDQWXQGHUVWDQGZHOOFUHGLWWRODQJXDJH
SUREOHPV
:KDWLVWKDWVWXIIWKH\VSHDN"
'HDGODQJXDJHXQNQRZQSDUHQWZRUOG+LVKDQGVZHUHDEOXUVHWWLQJXS
WKHWUDQVLWLRQ
,WKDVDZHOODOLTXLGIHHO
2QHWKLQJ
6\E\OVEUHDVWVVZHOOHGDVVKHGUHZLQKHUEUHDWKKHOGLWWKHQVORZO\
HDVHGLWRXW,MXVWKRSHP\FOLHQWGRHVQWILQGRXWDERXW6HOGRQ7KH
FRPSDQ\VWDNLQJDQDZIXOFKDQFHQRWWHOOLQJHLWKHURQHRIWKHPDERXWWKH
RWKHU
6RZKDW"+HHQMR\HGJLYLQJDFDUHIUHHVKUXJ$IOXWWHUJOLGHZRXOG
SHWULI\KLPEXWSRZHUJDPHVWKRVHKHORYHG$UWLILFH$VVRFLDWHVKDGWDNHQ
PDMRUDFFRXQWVIURPWKHWZRGHDGO\ULYDOVLQWKLVZKROHDIIDLU
,IERWKVLGHVRIWKHDUJXPHQWILQGRXWZHUHKDQGOLQJERWKDFFRXQWV
WKH\OOOHDYH5HIXVHWRSD\EH\RQGWKHUHWDLQHUDQG\RXNQRZKRZPXFKZHYH
RYHUVSHQWEH\RQGWKDW
/HDYH"+LVWXUQWRFKXFNOH1RWLIWKH\ZDQWWRZLQ:HUHWKHEHVW
0DUTJDYHKHUKLVFRFN\VPLOH<RXDQGPHLQFDVH\RXZHUHZRQGHULQJ-XVW
ZDLWWLOO\RXVHHWKLV
+HGRZQHGWKHOLJKWVVWDUWHGWKHUXQDQGOHDQHGEDFNLQKLVFODVS
FKDLUOHJVVWUHWFKHGRXWRQWKHWDEOHEHIRUHKLP+HZDQWHGWRLPSUHVVKHU
7KDWZDVQWDOOKHZDQWHG%XWVLQFHKHUKXVEDQGKDGEHHQFUXVKHGLQDQ
DFFLGHQWEH\RQGUHSDLUE\HYHQWKHEHVWPHGLFRVKHGGHFLGHGWRZDLWD
GHFHQWLQWHUYDOEHIRUHKHPDGHKLVPRYH:KDWDWHDPWKH\ZRXOGPDNH2SHQD
ILUPVD\0DUT6\E\O/LPLWHGVNLPRIIWKHEHVW$FXVWRPHUVPDNHDQDPH
1RQDPHV/HWVEHIDLU
6\E\OVYRLFHWUHPEOHGLQWKHJORRP7RPHHWDQFLHQWV
'RZQGRZQGRZQLQWRWKHUHSOLFDWHGZRUOGLWVVHDPOHVVEOXH
FRPSOH[LW\VZHOOLQJDFURVVWKHHQWLUHIDFLQJZDOO9LEURWDFWLOHIHHGEDFNIURP
LQGXFWDQFHGHUPRWDEVSHUIHFWHGWKHLOOXVLRQ
7KH\VZRRSHGLQWRDSULPLWLYHFLW\EDUHO\RQHOD\HURIEXLOGLQJVWR
FRYHUWKHQDNHGJURXQG6RPHVRUWRIFUXGHYLOODJHSUH(PSLUH6WUHHWV
ZKLUOHGE\EXLOGLQJVWXUQHGLQDUWIXOSURMHFWLRQ(YHQWKHFURZGVDQGFOXPSHG
WUDIILFEHORZVHHPHGDXWKHQWLFDPXGGOHGKXPDQMXPEOH6ZLIWO\WKH\FDUHHQHG
LQWRWKHLUIRUHJURXQGVLPDFDIHRQVRPHWKLQJFDOOHGWKH%RXOHYDUG6W
*HUPDLQ&OR\LQJVPHOOVWKHPXWHGJULQGRIWUDIILFRXWVLGHDUDWWOHRI
SODWHVWKHKHDG\DURPDRIDVRXIIOp
0DUT]RRPHGWKHPLQWRWKHVDPHWLPHIUDPHDVWKHUHFUHDWHGHQWLWLHV$
OHDQPDQORRPHGDFURVVWKHZDOO+LVH\HVUDGLDWHGLQWHOOLJHQFHPRXWKWLOWHG
ZLWKVDUGRQLFPLUWK
6\E\OZKLVWOHGWKURXJKKHUWHHWK(\HVQDUURZLQJVKHZDWFKHGWKHUH
FUHDWLRQVPRXWKDVLIWRUHDGLWVOLSV9ROWDLUHZDVLQWHUURJDWLQJWKH
PHFKZDLWHU,UULWDEO\RIFRXUVH
+LJKILYHVHQVHUHVROXWLRQVKHVDLGDSSURSULDWHO\DZHG,FDQWJHW
PLQHWKDWFOHDU,VWLOOGRQWNQRZKRZ\RXGRLW
0DUTWKRXJKW0\6DUNFRQWDFWV,NQRZ\RXKDYHVRPHWRR
+H\VKHVDLG:KDW+HJULQQHGZLWKJOHHDVKHUPRXWKIHOORSHQ

DQGVKHVWDUHGDWWKHLPDJHRIKHU-RDQQH[WWRKLV9ROWDLUHIUHH]HIUDPH
GDWDVWUHDPVLQLWLDOL]HGEXWQRW\HWUXQQLQJLQWHUDFWLYHO\
+HUH[SUHVVLRQPLQJOHGDGPLUDWLRQZLWKIHDU:HUHQRWVXSSRVHGWR
EULQJWKHPRQWRJHWKHUQRWWLOOWKH\PHHWLQWKHFROLVHXP
:KRVD\V",WVQRWLQRXUFRQWUDFW
+DVWRUZLOOVNHZHUXVDQ\ZD\
0D\EHLIKHILQGVRXW:DQWPHWRVHFWLRQKHURII"
+HUPRXWKWZLVWHGSUHWWLO\2IFRXUVHQRW:KDWWKHKHOOLWVGRQH
$FWLYDWH
,NQHZ\RXGJRIRULW:HUHWKHDUWLVWVZHPDNHWKHGHFLVLRQV
+DYHZHJRWWKHUXQQLQJFDSDFLW\WRPDNHWKHPUHDOWLPH"
+HQRGGHG,WOOFRVWEXWVXUH$QG,YHJRWDOLWWOHSURSRVLWLRQ
IRU\RX
8KRK +HUEURZDUFKHG)RUELGGHQQRGRXEW
+HZDLWHGMXVWWRWDQWDOL]HKHU$QGWRMXGJHIURPKHUUHDFWLRQKRZ
UHFHSWLYHVKHGEHLIKHWULHGWRFKDQJHWKHQDWXUHRIWKHLUORQJVWDQGLQJ
SODWRQLFUHODWLRQVKLS+HKDGWULHGRQFHEHIRUH+HUUHMHFWLRQVKHZDV
PDUULHGRQDGHFDGHFRQWUDFWVKHJHQWO\UHPLQGHGKLPRQO\PDGHKLPGHVLUH
KHUPRUH$OOWKDWDQGIDLWKIXOLQPDUULDJHWRR(QRXJKWRPDNHWKHWHHWK
JULQGZKLFKWKH\KDGIUHTXHQWO\2IFRXUVHWKH\FRXOGEHUHSODFHGIRUOHVV
WKDQWKHSULFHRIDQKRXUZLWKDJRRGWKHUDSLVW
+HUERG\ODQJXDJHQRZDVOLJKWSXOOLQJDZD\WROGKLPVKHZDVVWLOO
PRXUQLQJKHUGHDGKXVEDQG+HZDVSUHSDUHGWRZDLWWKHFXVWRPDU\\HDUEXW
RQO\LIKHKDGWR
:KDWVD\ZHJLYHERWKRIWKHPPDVVLYHILOHVIDUEH\RQG%DVLV6WDWH
KHVDLGTXLFNO\5HDOO\JLYHWKHPVROLGNQRZOHGJHRIZKDW7UDQWRUVOLNHWKH
(PSLUHHYHU\WKLQJ
,PSRVVLEOH
1RMXVWH[SHQVLYH
6RPXFK
6RZKDW"-XVWWKLQNDERXWLW:HNQRZZKDWWKHVHWZR3ULPRUGLDOV
UHSUHVHQWHGHYHQLIZHGRQWNQRZZKDWZRUOGWKH\FDPHIURP
7KHLUVWUDWDPHPRULHVVD\(DUWKUHPHPEHU"
0DUTVKUXJJHG6R"'R]HQVRISULPLWLYHZRUOGVFDOOHGWKHPVHOYHVWKDW
2KWKHZD\3ULPLWLYHVFDOOWKHPVHOYHVWKH3HRSOH"
6XUH7KHZKROHIRONWDOHLVZURQJDVWURSK\VLFDOO\WRR7KLVOHJHQGRI
WKHRULJLQDOSODQHWLVSUHWW\FOHDURQRQHSRLQWWKHZRUOGZDVPRVWO\RFHDQV
6RZK\FDOOLW(DUWK"
6KHQRGGHG*UDQWHGWKH\UHGHOXGHG$QGWKH\KDYHQRVROLGGDWDEDVHV
DERXWDVWURQRP\,FKHFNHGWKDW%XWORRNDWWKHLU6RFLDO&RQWH[WUHDGLQJV
7KHVHWZRVWRRGIRUFRQFHSWVHWHUQDOLGHDV)DLWKDQG5HDVRQ
0DUTEDOOHGERWKILVWVLQHQWKXVLDVPDER\LVKJHVWXUH5LJKW2QWRS
RIWKDWZHOOSXPSLQZKDWZHNQRZWRGD\SVHXGRQDWXUDOVHOHFWLRQ
SV\FKRSKLORVRSK\JHQHGHVWLQLHV
%RNHUZLOOQHYHUJRIRULW6\E\OVDLG,WVSUHFLVHO\PRGHP
LQIRUPDWLRQWKH3UHVHUYHUVRI2XU)DWKHUV)DLWKGRQWZDQW7KH\ZDQWWKH
KLVWRULFDO0DLGSXUHDQGXQFRQWDPLQDWHGE\PRGHPLGHDV,GKDYHWRSURJUDP
KHUWRUHDG
$FLQFK
ZULWHKDQGOHKLJKHUPDWKHPDWLFV*LYHPHDEUHDN
'R\RXREMHFWRQHWKLFDOJURXQGV"2UVLPSO\WRDYRLGDIHZPHDVO\
FHQWXULHVRIZRUN"
(DV\IRU\RXWRVD\<RXU9ROWDLUHKDVDQHVVHQWLDOO\PRGHPPLQG
:KRHYHUPDGHKLPKDGKLVRZQZRUNGR]HQVRIELRJUDSKLHV0\0DLGLVDVPXFK
P\WKDVVKHLVIDFW6RPHERG\UHFUHDWHGKHURXWRIWKLQDLU
7KHQ\RXUREMHFWLRQVEDVHGRQOD]LQHVVQRWSULQFLSOH
,WVEDVHGRQERWK

:LOO\RXDWOHDVWJLYHLWVRPHWKRXJKW"
,MXVWGLG7KHDQVZHULVQR
0DUTVLJKHG1RXVHDUJXLQJ<RXOOVHHRQFHZHOHWWKHPLQWHUDFW
+HUPRRGVHHPHGWRVZLQJIURPUHVLVWDQFHWRH[FLWHPHQWLQKHU
HQWKXVLDVPVKHHYHQWRXFKHGKLVOHJILQJHUVOLQJHULQJ+HIHOWKHU
DIIHFWLRQDWHWDSMXVWDVWKH\RSHQHG LQWRWKHVLPVSDFH


:KDWVJRLQJRQKHUH"9ROWDLUHURVHKDQGVRQKLSVFKDLUWRSSOLQJ
EDFNEHKLQGKLPFODWWHULQJRQVWRQHDQGSHHUHGGRZQDWWKHPIURPWKHVFUHHQ
:KRDUH\RX":KDWLQIHUQDODJHQF\GR\RXUHSUHVHQW"
0DUTVWRSSHGWKHVLPDQGWXUQHGWR6\E\O8KGR\RXZDQWWRH[SODLQLW
WRKLP"
+HV\RXUUHFUHDWLRQQRWPLQH
,YHGUHDGHGWKLV9ROWDLUHZDVLPSRVLQJ+HH[XGHGSRZHUDQGHOHFWULF
FRQILGHQFH6RPHKRZLQDOOKLVPLFURVFRSLFLQVSHFWLRQVRIWKLVVLPWKHVXP
RILWDOO WKLVJHVWDOWHVVHQFHKDGQHYHUFRPHWKURXJK
:HZRUNHGKDUGRQWKLV,I\RXVWDOOQRZ
0DUTEUDFHGKLPVHOI5LJKWULJKW
+RZGR\RXORRNWRKLP"
,PDGHP\VHOIPDWHULDOL]HZDONRYHUVLWGRZQ
+HVDZ\RXFRPHRXWRIQRWKLQJ"
,JXHVVVRKHVDLGFKDJULQHG 6KRRNKLPXS
0DUTKDGXVHGHYHU\WHPSHUDPHQWIDEULFDWLRQKHKDGWULPPLQJDQGVKDSLQJ
PRRGFRQVWHOODWLRQVEXWKHKDGOHIWLQWDFW9ROWDLUHVFHQWUDOFRUH:KDWD
KDUGEDOONQRWLWZDV6RPHSURJUDPPHURISUHDQWLTXLW\KDGGRQHDVWDUWOLQJ
GHQVHMRE*LQJHUO\KHGLSSHGWKH9ROWDLUHVLPLQWRDFRORUOHVVYRLGRI
VHQVRU\VWDWLF6RRWKHWKHQVOLGH
+LVILQJHUVGDQFHG+HFXWLQWKHWLPHDFFHOHUDWLRQ
6LPSHUVRQDOLWLHVQHHGHGFRPSXWDWLRQDOGXUDWLRQVWRDVVLPLODWHQHZ
H[SHULHQFH+HWKUXVW9ROWDLUHLQWRDFOXWWHUHGVHHPLQJO\UHDOH[SHULHQFH
QHW7KHSHUVRQDOLW\UHDFWHGWRWKHVLPXODWLRQDQGUDFHGWKURXJKWKHLQGXFHG
HPRWLRQV9ROWDLUHZDVUDWLRQDOKLVSHUVRQDOLW\FRXOGDFFHSWQHZLGHDVWKDW
WRRNWKH-RDQVLPIDUORQJHU
:KDWGLGDOOWKLVGRWRDUHFRQVWUXFWLRQRIDUHDOSHUVRQZKHQ
NQRZOHGJHRIDGLIIHUHQWUHDOLW\GDZQHG"+HUHFDPHWKHWULFN\SDUWRIWKH
UHDQLPDWLRQ$FFHSWDQFHRIZKRZKDWZKHQWKH\ZHUH
&RQFHSWXDOVKRFNZDYHVZRXOGUHVRXQGWKURXJKWKHGLJLWDOSHUVRQDOLWLHV
IRUFLQJHPRWLRQDODGMXVWPHQWV&RXOGWKH\WDNHLW"7KHVHZHUHQWUHDOSHRSOH
DIWHUDOODQ\PRUHWKDQDQDEVWUDFWLPSUHVVLRQLVWSDLQWLQJSUHWHQGHGWRWHOO
\RXZKDWDFRZORRNHGOLNH1RZKHDQG6\E\OFRXOGVWHSLQRQO\DIWHUWKH
DXWRPDWLFSURJUDPVKDGGRQHWKHLUEHVW
+HUHWKHLUPDWKFUDIWPHWLWVWHVW$UWLILFLDOSHUVRQDOLWLHVKDGWR
VXUYLYHWKLVFXVSSRLQWRUFUDVKLQWRLQVDQLW\DQGLQFRKHUHQFH5DFLQJDORQJ
KLJKZD\VRIH[SDQGLQJSHUFHSWLRQWKHRQWRORJLFDOVZHUYHVFRXOGMROWD
FRQVWUXFWVRKDUGLWVKDWWHUHG
+HOHWWKHPPHHWHDFKRWKHUZDWFKLQJFDUHIXOO\7KH$X['HX[0DJRWV
VLPSOHWRZQDQGFURZGEDFNGURS7RVKDYHFRPSXWLQJWLPHZHDWKHUUHSHDWHG
HYHU\WZRPLQXWHVRIVLPWLPH&ORXGOHVVVN\WRVDYHRQIOXLGIORZPRGHOLQJ
6\E\OWLQNHUHGZLWKKHU-RDQKHZLWKKLV9ROWDLUHVPRRWKLQJDQGURXQGLQJ
VPDOOFUDFNVDQGVOLSSDJHVLQWKHFKDUDFWHUSHUFHSWXDOPDWUL[
7KH\PHWVSRNH6RPHVNLWWHULQJEOXHZKLWHVWRUPVVZHSWWKURXJK
9ROWDLUHVQHXURQDOVLPXODWLRQV0DUTVHQWLQFRQFHSWXDOUHSDLUDOJRULWKPV
7XUEXOHQFHODSSHGDZD\
*RWLWKHZKLVSHUHG6\E\OQRGGHGEHVLGHKLPLQWHQWRQKHURZQ
VPRRWKLQJIXQFWLRQV

+HVUXQQLQJUHJXODUQRZ0DUTVDLGIHHOLQJEHWWHUDERXWWKHVWDUWXS
PLVWDNH,OONHHSP\PDQLIHVWDWLRQVLWWLQJULJKW"1RGLVDSSHDUDQFHVRU
DQ\WKLQJ
-RDQVFOHDUHGXS6\E\OSRLQWHGDWEURZQVWULDWLRQVLQWKHPDWUL[
UHSUHVHQWDWLRQWKDWIORDWHGLQ'EHIRUHKHU6RPHHPRWLRQDOWHFWRQLFVEXW
WKH\OOWDNHWLPH
,VD\JR
6KHVPLOHG/HWV
7KHPRPHQWFDPH0DUTVXFNHG9ROWDLUHDQG-RDQEDFNLQWRUHDOWLPH
:LWKLQDPLQXWHKHNQHZWKDW9ROWDLUHZDVVWLOOLQWDFWIXQFWLRQDO
LQWHJUDWHG6RZDV-RDQWKRXJKVKHKDGUHWUHDWHGLQWRKHUSHQVLYHZLWKGUDZDO
PRGHDQDVSHFWZHOOGRFXPHQWHGKHULQWHUQDOZHDWKHU
9ROWDLUHWKRXJKZDVLUNHG+HVZHOOHGOLIHVL]HGEHIRUHWKHP7KH
KRORJUDPVFRZOHGVZRUHDQGORXGO\GHPDQGHGWKHULJKWWRLQLWLDWH
FRPPXQLFDWLRQZKHQHYHUKHOLNHG
<RXWKLQN,ZDQWWREHDW \RXUPHUF\ZKHQHYHU,YHVRPHWKLQJWRVD\"
<RXUHWDONLQJWRDPDQZKRZDVH[LOHGFHQVRUHGMDLOHGVXSSUHVVHGZKR
OLYHGLQFRQVWDQWIHDURIFKXUFKDQGVWDWHDXWKRULWLHV
)LUHWKH0DLGZKLVSHUHGZLWKHHULHVHQVXDOLW\
&DOPGRZQ0DUTRUGHUHG9ROWDLUHRU,OOVKXW\RXRII+HIUR]H
DFWLRQDQGWXUQHGWR6\E\O:KDWGR\RXWKLQN"6KRXOGZHFRPSO\"
:K\QRW"VKHVDLG,WVQRWIDLUIRUWKHPWREHIRUHYHUDWRXUEHFN
DQGFDOO
)DLU"7KLVLVDVLP
7KH\KDYHQRWLRQVRIIDLUQHVV,IZHYLRODWHWKRVH
2ND\RND\+HVWDUWHGDFWLRQDJDLQ7KHQH[WTXHVWLRQLVKRZ
,GRQWFDUHKRZ\RXGRLWWKHKRORJUDPVDLG-XVWGRLWDWRQFH
+ROGRII0DUTVDLG:HOOOHW\RXKDYHUXQQLQJWLPHWRLQWHJUDWH
\RXUSHUFHSWLRQVSDFH
:KDWGRHVWKDWPHDQ"9ROWDLUHDVNHG$UWIXOH[SUHVVLRQLVRQHWKLQJ
MDUJRQDQRWKHU
7RZRUNRXW\RXUNLQNV0DUTUHSOLHGGU\O\
6RWKDWZHFDQFRQYHUVH"
<HV6\E\OVDLG$W\RXULQLWLDWLRQQRWMXVWRXUV'RQWJRIRUD
ZDONDWWKHVDPHWLPHWKRXJKWKDWUHTXLUHVWRRPXFKGDWDVKXIIOLQJ
:HUHWU\LQJWRKROGFRVWVGRZQKHUH0DUTVDLGOHDQLQJEDFNVRKH
FRXOGJHWDEHWWHUYLHZRI6\E\OVOHJV
:HOOKXUU\XSWKH9ROWDLUHLPDJHVDLG3DWLHQFHLVIRUPDUW\UVDQG
VDLQWVQRWIRUPHQRIEHOOHVOHWWUHV
7KHWUDQVODWRUUHQGHUHGDOOWKLVLQSUHVHQWODQJXDJHLQVHUWLQJWKH
DXGLRRIDQFLHQWORVWZRUGV.QRZOHGJHIHWFKHUVIRXQGWKHWUDQVODWLRQDQG
RYHUODLGLWIRU0DUTDQG6\E\O6WLOO0DUTKDGOHIWLQWKHVOLSSHU\QDWXUDO
DFRXVWLFVIRUDWPRVSKHUHWKHWHQRURIWKHXQLPDJLQDEO\GLVWDQWSDVW
-XVWVD\P\QDPHRU6\E\OVDQGZHOODSSHDUWR\RXLQDUHFWDQJOH
ULPPHGLQUHG
0XVWLWEHUHG"7KH0DLGVYRLFHZDVIUDLO&DQ\RXQRWPDNHLWEOXH"
%OXHLVVRFRROWKHFRORURIWKHVHD:DWHULVVWURQJHUWKDQILUHFDQSXW
ILUHRXW
6WRSEDEEOLQJWKHRWKHUKRORJUDPVQDSSHG+HEHFNRQHGWRDPHFKZDLWHU
DQGVDLG7KDWIODPEpGLVKWKHUHSXWLWRXWDWRQFH,WVXSVHWWLQJWKH
0DLG$QG\RXWZRJHQLXVHVRXWWKHUH,I\RXFDQUHVXUUHFWWKHGHDG\RX
FHUWDLQO\VKRXOGEHDEOHWRFKDQJHUHGWREOXH
,GRQWEHOLHYHWKLVVDLG6\E\O$VLP":KRGRHVKHWKLQNKHLV"
7KHYRLFHRIUHDVRQ0DUTUHSOLHG)UDQFRLV0DULH$URXHWGH
9ROWDLUH
'R\RXWKLQNWKH\UHUHDG\WRVHH%RNHU"6\E\OFKHZHGSUHWWLO\DWKHU
OLS:HDJUHHGWROHWKLPLQWRWKHVLPDVVRRQDVWKH\ZHUHVWDELOL]HG

0DUTWKRXJKW/HWVSOD\LWVTXDUHDQGOLQHDUZLWKKLP,OOFDOO
:HKDYHVRPXFKWROHDUQIURPWKHP
7UXH:KRFRXOGKDYHJXHVVHGWKDWSUHKLVWRULFDOVFRXOGEHVXFK
EDVWDUGV"


6KHWULHGWRLJQRUHWKHVRUFHUHVVFDOOHG6\E\OZKRFODLPHGWREHKHU
FUHDWRUDVLIDQ\RQHEXWWKH.LQJRI+HDYHQFRXOGOD\FODLPWRVXFKDIHDW
6KHGLGQWIHHOOLNHWDONLQJWRDQ\RQH(YHQWVFURZGHGLQUXVKHGGHQVH
VXIIRFDWLQJ+HUFKRNLQJSDLQVKRWGHDWKVWLOOVZDUPHGDERXWKHU
2QWKHGXQFHVFDSWKHRQHWKH\GVHWXSRQKHUVKDYHQKHDGRQWKDW
ILHU\GD\WKHGDUNHVWDQG\HWPRVWJORULRXVGD\RIKHUVKRUWOLIHKHU
FULPHVZHUHLQVFULEHGLQWKHKRO\WRQJXH+HUHWLFD5HODSVD$SRVWDWD
,GRODWHU%ODFNZRUGVVRRQWRLJQLWH
7KHOHDUQHGFDUGLQDOVDQGELVKRSVRIWKHIRXO(QJOLVKORYLQJ8QLYHUVLW\
RI3DULVDQGRIWKH&KXUFK&KULVWVEULGH RQHDUWKKDGVHWKHUOLYLQJERG\
RQILUH$OOIRUFDUU\LQJRXWWKH/RUGVZLOOWKDWWKH*UHDWDQG7UXH.LQJ
VKRXOGEH+LVPLQLVWHULQ)UDQFH)RUWKDWWKH\KDGUHMHFWHGWKHNLQJV
UDQVRPDQGVHQWKHUWRWKHVHDULQJS\UH:KDWWKHQPLJKWWKH\QRWGRWRWKLV
VRUFHUHVVFDOOHG6\E\OZKROLNHKHUGZHOWDPRQJPHQZRUHPHQVDWWLUHDQG
FODLPHGIRUKHUVHOISRZHUVWKDWHFOLSVHGWKRVHRIWKH&UHDWRU+LPVHOI"
3OHDVHJRDZD\VKHPXUPXUHG,PXVWKDYHVLOHQFHLI,DPWRKHDUP\
YRLFHV
%XWQHLWKHU/D 6RUFLqUHQRUWKHEHDUGHGPDQLQEODFNQDPHG%RNHUZKR
UHVHPEOHGXQFDQQLO\WKHJORZHULQJSDWULDUFKVRQWKHGRPHGFHLOLQJRIWKHJUHDW
FKXUFKDW5RXHQZRXOGOHDYHKHUDORQH
6KHLPSORUHGWKHP,I\RXPXVWWDONQDWWHUDW0RQVLHXU$URXHW7KDW
RQHOLNHV QRWKLQJPRUH
6DFUHG0DLG5RVHRI)UDQFHVDLGWKHEHDUGHGRQHZDV)UDQFH\RXU
ZRUOG"
0\VWDWLRQLQWKHZRUOG-RDQVDLG
<RXUSODQHW,PHDQ
3ODQHWVDUHLQWKHVN\,ZDVRIWKHHDUWK
,PHDQRKQHYHUPLQG+HVSRNHVRXQGOHVVO\ WRWKHZRPDQ6\E\O2I
WKHJURXQG")DUPHUV"&RXOGHYHQSUHKLVWRULFDOVEHVRLJQRUDQW"DSSDUHQWO\
WKLQNLQJVKHFRXOGQRWUHDGOLSVDWULFNVKHKDGPDVWHUHGWRGLYLQHWKH
GHOLEHUDWLRQVRIFKXUFKO\WULEXQDOV
-RDQVDLG,NQRZZKDWLVVXIILFLHQWWRP\FKDUJH
%RNHUIURZQHGWKHQUXVKHGRQ3OHDVHKHDUPHRXW2XUFDXVHLVMXVW
7KHIDWHRIWKHVDFUHGGHSHQGVXSRQRXUZLQQLQJWRRXUVLGHPDQ\FRQYHUWV,I
ZHDUHWRXSKROGWKHYHVVHORIKXPDQLW\DQGWLPHKRQRUHGWUDGLWLRQVRIRXU
YHU\LGHQWLW\ZHPXVWGHIHDW6HFXODU6NHSWLFLVP
6KHWULHGWRWXUQDZD\EXWWKHFODQNLQJZHLJKWRIKHUFKDLQVVWRSSHG
KHU/HDYHPHDORQH$OWKRXJK,NLOOHGQRRQH,IRXJKWLQPDQ\FRPEDWVWR
DVVXUHWKHYLFWRU\RI)UDQFHV*UHDW7UXH.LQJ,SUHVLGHGRYHUKLVFRURQDWLRQ
DW5KHLPV,ZDVZRXQGHGLQEDWWOHIRUKLVVDNH
6KHKHOGXSKHUZULVWVIRUVKHZDVQRZLQWKHIRXOFHOODW5RXHQLQ
OHJLURQVDQGFKDLQV6\E\OKDGVDLGWKLVZRXOGDQFKRUKHUEHJRRGIRUKHU
FKDUDFWHULQVRPHZD\$VDQDQJHO6\E\OZDVQRGRXEWFRUUHFW%RNHUEHJDQWR
LPSORUHKHUEXW-RDQVXPPRQHGVWUHQJWKWRVD\7KHZRUOGNQRZVKRZ,ZDV
UHTXLWHGIRUP\SDLQV,VKDOOZDJHZDUQRPRUH
0RQVLHXU%RNHUWXUQHGWRWKHVRUFHUHVV$VDFULOHJHWRNHHSDJUHDW
ILJXUHLQFKDLQV&DQW\RXWUDQVSRUWKHUWRVRPHSODFHRIWKHRORJLFDOUHVW"$
FDWKHGUDO"
&RQWH[W6LPVQHHGFRQWH[W/D6RUFLqUHVDLGZLWKRXWVRXQG-RDQIRXQG
VKHFRXOGUHDGOLSVZLWKDFODULW\VKHKDGQHYHUNQRZQ3HUKDSVWKLV3XUJDWRU\

LPSURYHGLWVFKDUJHV
0RQVLHXU%RNHUFOXFNHG,DPLPSUHVVHGZLWKZKDW\RXYHGRQHEXW
XQOHVV\RXFDQPDNHKHUFRRSHUDWHZKDWJRRGLVVKHWRXV"
<RXKDYHQWVHHQKHUDWWKHVXPPLWRIKHU6HOIKRRG7KHIHZKLVWRULFDO
DVVRFLDWLRQVZHKDYHEHHQDEOHWRGHFLSKHUFODLPWKDWVKHZDVDPHVPHUL]LQJ
SUHVHQFH:HOOKDYHWREULQJWKDWRXW
&DQ\RXQRWPDNHKHUVPDOOHU",WVLPSRVVLEOHWRWDONWRDJLDQW
7KH0DLGWRKHUDVWRQLVKPHQWVKUDQNE\WZRWKLUGVLQKHLJKW
0RQVLHXU%RNHUVHHPHGSOHDVHG*UHDW-RDQ\RXPLVXQGHUVWDQGWKHQDWXUH
RIWKHZDUWKDWOLHVDKHDG8QFRXQWDEOHPLOOHQQLDKDYHSDVVHGVLQFH\RXU
DVFHQVLRQLQWRKHDYHQ<RX
7KH0DLGVDWXS7HOOPHRQHWKLQJ,VWKHNLQJRI)UDQFHDGHVFHQGDQW
RIWKH(QJOLVK+HQU\V+RXVHRI/DQFDVWHU"2ULVKHD9DORLV GHVFHQGHGIURP
WKH*UHDWDQG7UXH.LQJ&KDUOHV"
0RQVLHXU%RNHUEOLQNHGDQGWKRXJKW,,WKLQNLWPD\EHWUXO\VDLG
WKDWZH3UHVHUYHUVRI2XU)DWKHUV)DLWKWKHSDUW\,UHSUHVHQWDUHLQD
PDQQHURIVSHDNLQJGHVFHQGDQWVRI\RXU&KDUOHV
7KH0DLGVPLOHG6KHNQHZKHUYRLFHVKDGEHHQKHDYHQVHQWQRPDWWHU
ZKDWWKHELVKRSVVDLG6KHGRQO\GHQLHGWKHPZKHQWKH\WRRNKHUWRWKH
FHPHWHU\RI6W2XHQDQGWKHQRQO\IRUIHDURIWKHILUH6KHGEHHQULJKWWR
UHFDQWKHUUHFDQWDWLRQWZRGD\VODWHUWKH/DQFDVWULDQIDLOXUHWRDQQH[)UDQFH
FRQILUPHGWKDW,I0RQVLHXU%RNHUVSRNHIRUGHVFHQGDQWVRIWKH+RXVHRI
9DORLVGHVSLWHKLVFOHDUDEVHQFHRIDQREOHWLWOHVKHZRXOGKHDUKLPRXW
3URFHHGVKHVDLG
0RQVLHXU%RNHUH[SODLQHGWKDWWKLVSODFHZDVVRRQWRKROGDUHIHUHQGXP
$IWHUVRPHGHOLEHUDWLRQZLWKOD6RUFLqUHKHDGYLVHGWKDW-RDQVKRXOGWKLQN
RIWKLVSODFHDV)UDQFHLQHVVHQFH 7KHFRQWHVWZRXOGEHEHWZHHQWZRPDMRU
SDUWLHV3UHVHUYHUVYV6NHSWLFV%RWKSDUWLHVKDGDJUHHGWRKROGD*UHDW
'HEDWH EHWZHHQWZRYHUEDOGXHOLVWVWRIUDPHWKHVDOLHQWTXHVWLRQ
:KDWLVVXH"WKH0DLGDVNHGVKDUSO\
:KHWKHUPHFKDQLFDOEHLQJVHQGRZHGZLWKDUWLILFLDOLQWHOOLJHQFHVKRXOG
EHEXLOW$QGLIVRVKRXOGWKH\EHDOORZHGIXOOFLWL]HQVKLSZLWKDOO
DWWHQGDQWULJKWV
7KH0DLGVKUXJJHG$MRNH"2QO\DULVWRFUDWVDQGQREOHPHQKDYHULJKWV
1RWDQ\PRUHWKRXJKRIFRXUVHZHGRKDYHDFODVVV\VWHP1RZWKHFRPPRQ
ORWHQMR\ULJKWV
3HDVDQWVOLNHPH"WKH0DLGDVNHG:H"
0RQVLHXU%RNHUIDFHDPRYLQJIOXUU\RIH[DVSHUDWHGVFRZOVWXUQHGWR/D
6RUFLqUH0XVW,GRHYHU\WKLQJ"
<RXZDQWHGKHUDVLV/D6RUFLqUHVDLG2UUDWKHUDVZDV
0RQVLHXU%RNHUVSHQWWZRPLQXWHVUDQWLQJDERXWVRPHWKLQJKHFDOOHGWKH
&RQFHSWXDO6KLIW7KLVWHUPPHDQWDQDSSDUHQWO\WKHRORJLFDOGLVSXWHDERXWWKH
QDWXUHRIPHFKDQLFDODUWLILFH7R-RDQWKHDQVZHUVHHPHGFOHDUEXWWKHQVKH
ZDVDZRPDQRIWKHILHOGVQRWDZRUGDUWLVDQ
:K\GRQW\RXDVN\RXUNLQJ"2QHRIKLVFRXQVHORUV"2URQHRI\RXU
OHDUQHGPHQ"
0RQVLHXU%RNHUFXUOHGKLVOLSGLVPLVVLYHO\IDQQHGWKHDLU2XUOHDGHUV
DUHSDOOLG:HDN5DWLRQDOGRRUPDWV
6XUHO\
<RXFDQQRWLPDJLQHFRPLQJIURPDQFLHQWSDVVLRQ,QWHQVLW\DQGSDVVLRQ
DUHUHJDUGHGDVEDGIRUPRXWRIVW\OH:HZLVKHGWRILQGLQWHOOHFWVZLWKWKH
ROGILUHWKH
1R2K7KHIODPHVOLFNLQJ
,WZDVVRPHPRPHQWVEHIRUHKHUEUHDWKLQJFDOPHGDQGVKHFRXOGVKDNLO\
OLVWHQDJDLQ
7KHJUHDWGHEDWHEHWZHHQ)DLWKDQG5HDVRQZRXOGEHKHOGLQWKH&ROLVHXP
RI-XQLQ6HFWRUEHIRUHDQDXGLHQFHRIVRXOV7KH0DLGDQGKHURSSRQHQW

ZRXOGDSSHDULQKRORJUDPVPDJQLILHGE\DIDFWRURIWKLUW\(DFKFLWL]HQZRXOG
WKHQYRWHRQWKHTXHVWLRQ
9RWH"WKH0DLGLQTXLUHG
<RXZDQWHGKHUXQFRUUXSWHG/D6RUFLqUHVDLG<RXJRWKHU
7KH0DLGOLVWHQHGLQVLOHQFHIRUFHGWRDEVRUEPLOOHQQLDLQPLQXWHV
:KHQ0RQVLHXU%RNHUILQLVKHGVKHVDLG,H[FHOOHGLQEDWWOHLIRQO\IRUD
EULHIWLPHEXWQHYHULQDUJXPHQW1RGRXEW\RXNQRZRIP\IDWH
0RQVLHXU%RNHUORRNHGSDLQHG7KHYDJXHULHVRIWKHDQFLHQWV:HKDYHD
VNLPS\KLVWRULFDOIUDPHDURXQG\RXUDKUHSUHVHQWDWLRQQRPRUH:HNQRZQRW
ZKDWSODFH\RXOLYHGEXWZHGRNQRZPLQXWLDHRIHYHQWVDIWHU\RXU
'HDWK<RXFDQVSHDNRILW,DPDFFXVWRPHGWRLWDVDQ\&KULVWLDQ
PDLGHQVKRXOGEHXSRQDUULYDOLQ3XUJDWRU\,NQRZZKR\RXWZRDUHDVZHOO
/D6RUFLqUHDVNHGFDXWLRXVO\<RXGR"
$QJHOV<RXPDQLIHVW\RXUVHOYHVDVRUGLQDU\IRONWRFDOPP\IHDUV
7KHQ\RXVHWPHDWDVN(YHQLILWLQYROYHVWKHURJXLVKLWLVDGLYLQH
PLVVLRQ
0RQVLHXU%RNHUQRGGHGVORZO\JODQFLQJDW/D6RUFLqUH)URPWKHWDWWHUV
RIGDWDIODSSLQJDERXW\RXU6HOIZHJDWKHUWKDW\RXUUHSXWDWLRQZDVUHVWRUHG
DWKHDULQJVKHOGWZHQW\VL[\HDUVDIWHU\RXUGHDWK7KRVHLQYROYHGLQ\RXU
FRQGHPQDWLRQUHSHQWHGRIWKHLUPLVWDNH<RXZHUHFDOOHGLQKLJKHVWHHP/D
5RVHGHODZLUH
6KHEOLQNHGEDFNZLVWIXOWHDUV-XVWLFH+DG,EHHQVNLOOHGLQ
DUJXPHQW,GKDYHFRQYLQFHGP\LQTXLVLWRUVWKRVH(QJOLVKORYLQJSUHDFKHUVRI
WKH8QLYHUVLW\RI3DULVWKDW, DPQRWDZLWFK
0RQVLHXU%RNHUVHHPHGPRYHG(YHQSUHDQWLTXLW\NQHZZKHQDKRO\SRZHU
ZDVZLWKWKHP
7KH0DLGODXJKHGOLJKWKHDUWHG7KH/RUGVRQWKHVLGHRI+LV6RQDQG
WKHVDLQWVDQGPDUW\UVWRR%XWWKDWGRHVQRWPHDQWKH\HVFDSHIDLOXUHDQG
GHDWK
6KHVULJKW/D6RUFLqUHVDLG(YHQZRUOGVDQGJDOD[LHVVKDUHPDQV
IDWH
:HRIVSLULWXDOLW\QHHG\RX0RQVLHXU%RNHUSOHDGHG:HKDYHEHFRPH
WRRPXFKOLNHRXUPDFKLQHV:HKROGQRWKLQJVDFUHGH[FHSWWKHVPRRWK
IXQFWLRQLQJRIRXUSDUWV:HNQRZ\RXZLOODGGUHVVWKHTXHVWLRQZLWK
LQWHQVLW\\HWLQVLPSOLFLW\DQGWUXWK7KDWLVDOOZHDVN
7KH0DLGIHOWIDWLJXHG6KHQHHGHGVROLWXGHWLPHWRUHIOHFW,PXVW
FRQVXOWZLWKP\YRLFHV:LOOWKHUHEHRQO\RQHRUPDQ\TXHVWLRQVWKDW,PXVW
DGGUHVV"
-XVWRQH
7KHLQTXLVLWRUVKDGEHHQIDUPRUHGHPDQGLQJ7KH\DVNHGPDQ\TXHVWLRQV
GR]HQVVRPHWLPHVWKHVDPHRQHVRYHUDQGRYHUDJDLQ5LJKWDQVZHUVDW
3RLWLHUVSURYHGZURQJHOVHZKHUH'HSULYHGRIIRRGGULQNUHVWLQWLPLGDWHGE\
WKHHQIRUFHGMRXUQH\WRWKHFHPHWHU\H[KDXVWHGE\WKHWHGLRXVVHUPRQWKH\
FRPSHOOHGKHUWRKHDUDQGZUDFNHGE\WHUURURIWKHILUHVKHFRXOGQRW
ZLWKVWDQGWKHLULQWHUURJDWLRQ
'RHVWKH$UFKDQJHO0LFKDHOKDYHORQJKDLU"
,V6W0DUJDUHWVWRXWRUOHDQ"
$UH6W&DWKHULQHVH\HVEURZQRUEOXH"
7KH\WUDSSHGKHULQWRDVVLJQLQJWRYRLFHVRIWKHVSLULWDWWULEXWLRQVRI
WKHIOHVK7KHQWKH\SHUYHUVHO\FRQGHPQHGKHUIRUFRQIRXQGLQJVDFUHGVSLULW
ZLWKFRUUXSWIOHVK
$OOKDGEHHQPLDVPD$QGLQ3XUJDWRU\ZRUVHWULDOVFRXOGHQVXH6KH
FRXOGQRWWKHUHIRUHEHFHUWDLQLIWKLV%RNHUZRXOGWXUQRXWWREHIULHQGRU
IRH
:KDWLVLW"VKHZDQWHGWRNQRZ7KLVVLQJOHTXHVWLRQ\RXZDQWPHWR
DQVZHU
7KHUHLVXQLYHUVDOFRQVHQVXVWKDWPDQPDGHLQWHOOLJHQFHVKDYHDNLQGRI

EUDLQ7KHTXHVWLRQZHZDQW\RXWRDQVZHULVZKHWKHUWKH\KDYHDVRXO
2QO\WKH$OPLJKW\KDVWKHSRZHUWRFUHDWHDVRXO
0RQVLHXU%RNHUVPLOHG:H3UHVHUYHUVFRXOGQWDJUHHZLWK\RXPRUH
$UWLILFLDOLQWHOOLJHQFHVXQOLNHXVWKHLUFUHDWRUVKDYHQRVRXO7KH\UH
MXVWPDFKLQHV0HFKDQLFDOFRQWULYDQFHVZLWKHOHFWURQLFDOO\SURJUDPPHGEUDLQV
2QO\PDQKDVDVRXO
,I\RXDOUHDG\NQRZWKHDQVZHUWRWKHTXHVWLRQZK\GR\RXQHHGPH"
7RSHUVXDGH)LUVWWKHXQGHFLGHGRI-XQLQ6HFWRUWKHQ7UDQWRUWKHQ
WKH(PSLUH
7KH0DLGUHIOHFWHG+HULQTXLVLWRUVKDGNQRZQWKHDQVZHUVWRWKH
TXHVWLRQVWKH\SOLHGKHUZLWKWRR0RQVLHXU%RNHUVHHPHGVLQFHUHEXWWKHQVR
ZHUHWKRVHZKRSURQRXQFHGKHUDZLWFK0RQVLHXU%RNHUKDGWROGKHUWKHDQVZHU
EHIRUHKDQGRQHZLWKZKLFKDQ\VHQVLEOHSHUVRQZRXOGDJUHH6WLOOVKHFRXOG
QRWEHVXUHRIKLVLQWHQWLRQV1RWHYHQWKHFUXFLIL[VKHDVNHGWKHSULHVWWR
KROGDORIWZDVSURRIDJDLQVWWKHRLO\VPRNHWKHELWLQJIODPHV
:HOO"DVNHG0RQVLHXU%RNHU:LOOWKH6DFUHG5RVHFRQVHQWWREHRXU
FKDPSLRQ"
7KHVHSHRSOH,PXVWFRQYLQFH$UHWKH\WRRGHVFHQGDQWVRI&KDUOHV
WKH*UHDWDQG7UXH.LQJRIWKH+RXVHRI9DORLV"


:KHQ0DUTVWURGHLQWR6SODVKHV 6QLIIVWRPHHWKLVEXGG\DQGFRZRUNHU
1LPKHZDVVXUSULVHGWRILQG1LPDOUHDG\WKHUH7RMXGJHIURP1LPVGLODWHG
SXSLOVKHGEHHQWKHUHPRVWRIWKHDIWHUQRRQ
0DUTVDLG+LWWLQJLWKDUG"6RPHWKLQJJRLQJRQ"
1LPVKRRNKLVKHDG6DPHROG0DUTEOXQWDVDILVW)LUVWWU\WKH
6ZLUOVQRUW'RHVQWGRDWKLQJIRU\RXUWKLUVWLQIDFWLWZLOOGU\XS\RXU
HQWLUHKHDGEXW\RXZRQWFDUH
6ZLUOVQRUWWXUQHGRXWWREHDSRZGHU\FRQFRFWLRQWKDWWDVWHGOLNHQXWPHJ
DQGELWDVLIKHKDGVZDOORZHGDQDQJU\LQVHFW0DUTVQLIIHGLWVORZO\RQH
QRVWULODWDWLPH+HZDQWHGWREHUHODWLYHO\FOHDUKHDGHGZKHQ1LPXSGDWHGKLP
RQRIILFHSROLWLFVDQGIXQGLQJ$IWHUWKDWKHGDOORZKLPVHOIWRJHWVN\HG
<RXPD\QRWOLNHWKLVVDLG1LP,WFRQFHUQV6\E\O
6\E\O+HODXJKHGDELWXQHDVLO\+RZG\RXNQRZ,
<RXWROGPH/DVWWLPHZHKDGDVQRUWWRJHWKHUUHPHPEHU"
2K7KHVWXIIPDGHKLPEDEEOH:RUVHLWPDGHKLPIRUJHWKHKDG
1RWH[DFWO\DVWDWHVHFUHW1LPJULQQHG
7KDWREYLRXV"+HZDQWHGWREHFHUWDLQ1LPZKRVZLWFKHGZRPHQDVRIWHQ
DVKHFKDQJHGKLVXQGHUZHDUKDGQRGHVLJQVRQ6\E\ORIKLVRZQ:KDWDERXW
KHU"
:HOOWKHUHVDORWRIMXLFHZDLWLQJIRUZKRHYHUZLQVWKHELJRQHDW
WKHFROLVHXP
1RSUREOHP0DUTVDLG0H
1LPUDQKLVKDQGWKURXJKKLVVWUDZEHUU\EORQGKDLU,FDQWGHFLGHLI
LWV\RXUPRGHVW\RU\RXUDELOLW\WRIRUHVHHWKHIXWXUHWKDW,OLNHPRVWDERXW
\RX<RXUPRGHVW\0XVWEHWKDW
0DUTVKUXJJHG6KHVJRRG,OODGPLW
%XW\RXUHEHWWHU
,POXFNLHU7KH\JDYHPH5HDVRQ6\E\OVVWXFNZLWK)DLWK
1LPJDYHKLPDEHPXVHGJODQFHDQGLQKDOHGGHHSO\,ZRXOGQW
XQGHUHVWLPDWH)DLWKLI,ZHUH\RX,WVKRRNHGWRSDVVLRQDQGQRRQHV
PDQDJHGWRJHWULGRIHLWKHU\HW
'RQWKDYHWR3DVVLRQVHYHQWXDOO\EXUQRXW
%XWWKHOLJKWRIUHDVRQEXUQVHWHUQDOO\"
,I\RXUHJHQHUDWHEUDLQFHOOV\HV
1LPORRNHGWKURXJKKLVVWUDZWRVHHLIDQ\WKLQJZDVOHIWDQGZLQNHGDW

0DUT7KHQ\RXGRQWQHHGDOLWWOHDGYLFH
:KDWDGYLFH",GLGQWKHDUDQ\DGYLFH
1LPFOXFNHG,I\RXUXQUHJHQHUDWHGEUDLQFHOOVFRQWDLQDVKUHGRI
FRPPRQVHQVH\RXOOVWRSFRRSHUDWLQJZLWK6\E\OWRLPSURYHKHUVLPXODWLRQ2U
EHWWHU\HW\RXOONHHSSUHWHQGLQJ\RXUHFRRSHUDWLQJVR\RXJHWWKH EHQHILW
RIDQ\WKLQJVKHFDQVKRZ\RX%XWZKDW\RXOOUHDOO\VWDUWGRLQJLVORRNLQJ
IRUZD\VWRGRERWKKHUDQGKHUVLPXODWLRQLQ3HRSOHVD\LWVWHUULILF
,YHVHHQLW
6RPHRILW7KLQNVKHVKRZVLWDOO"
:HYHEHHQZRUNLQJHYHU\GD\RQ
7UXQFDWHGVLPLVZKDW\RXVHH1LJKWVVKHLQIODWHVWKHZKROHSVHXGR
SV\FKH
0DUTIURZQHG+HNQHZKHZDVDELWOLJKWKHDGHGDURXQGKHUSKHURPRQHV
GRLQJWKHLUMREEXWKHKDGFRPSHQVDWHGIRUWKDW+DGQWKH"6KHZRXOGQW
6KHPLJKW3HRSOHXSVWDLUVJRWWKHLUH\HRQKHU
0DUTIHOWDVWDERIMHDORXV\LQVSLWHRIKLPVHOIEXWKHZDVFDUHIXOQRW
WRVKRZLW8PPP7KDQNV
1LPERZHGKLVKHDGZLWKFKDUDFWHULVWLFLURQ\DQGVDLG(YHQLI\RX
GRQWQHHGLW\RXGEHDIRROWRWXUQLWGRZQ
:KDWWKHMXLFHZKHQ,ZLQ"
1RWWKHMXLFHEXJJR<RXWKLQN,PLVVHGQRWLFLQJWKDW,PWDONLQJWR
DPELWLRQVVODYH"0\DGYLFH
0DUTWRRNDKHIW\GRXEOHQRVWULOVQRUW,OOFHUWDLQO\EHDULWLQ
PLQG
7KLVWKLQJVJRLQJWREHELJ<RXWKLQNLWVMXVWDMREIRUWKLV
6HFWRUEXW,WHOO\RXSHRSOHIURPDOORYHU7UDQWRUZLOOWXQHLQWRWKHVKRZ
$OOWKHEHWWHU0DUTVDLGWKRXJKKLVVWRPDFKZDVIHHOLQJOLNHKHKDG
VXGGHQO\JRQHLQWRIUHHIDOO/LYLQJLQDUHDOFXOWXUDOUHQDLVVDQFHZDVULVN\
0D\EHKLVKROORZIHHOLQJZDVWKHVWLPWKRXJK
,PHDQ6HOGRQDQGWKDWJX\ZKRIROORZVKLPDURXQGOLNHDGRJ$PDU\O
\RXWKLQNWKH\YHERRWHGWKLVWR\RXEHFDXVHLWVDVQDS"
0DUTWRRNDELWRIWKHVWLPEHIRUHDQVZHULQJ1RLWVEHFDXVH,PWKH
EHVW
$QG\RXUHDORQJZD\GRZQIURPWKHPRQWKHVWDWXVODGGHU<RXDUHP\
IULHQGH[SHQGDEOH
0DUTQRGGHGVREHUO\,OOFHUWDLQO\EHDULWLQPLQG
:DVKHUHSHDWLQJKLPVHOI"0XVWEHWKHVWLP
0DUTGLGQRWJLYH1LPVFRXQVHODQ\WKRXJKWXQWLOWZRGD\VODWHU+H
RYHUKHDUGVRPHRQHLQWKHH[HFXWLYHORXQJHSUDLVLQJ6\E\OVZRUNWR+DVWRUWKH
OHDGHURI$UWLILFH$VVRFLDWHV+HVNLSSHGOXQFKDQGZHQWEDFNWRKLVIORRU$V
KHSDVVHG6\E\OVRIILFHRQKLVZD\EDFNWRKLVRZQKLVLQWHQWLRQKHWROG
KLPVHOI ZDVWRUHOD\WKHFRPSOLPHQW%XWZKHQKHIRXQGKHUGRRUXQORFNHGKHU
RIILFHHPSW\DQLPSXOVHVHL]HGKLP
+DOIDQKRXUODWHUKHMXPSHGVOLJKWO\ZKHQVKHVDLG0DUTIURPWKH
RSHQGRRUZD\+HUKDQGVPRRWKHGKHUKDLULQZKDWKHWRRNWREHXQFRQVFLRXV
SULPSLQJEHWUD\LQJDGHVLUHWRSOHDVH&DQ,KHOS\RX"
+HGMXVWILQLVKHGWKHVRIWZDUHFURVVPDWWLQJWROLQNKHURIILFHVR
WKDWKHGEHDEOHWRPRQLWRUKHULQWHUYLHZVZLWKKHUFOLHQW%RNHU6KHVKDUHG
ZLWK0DUTWKHVXEVWDQFHRIWKHVHLQWHUYLHZVDV IDUDVKHNQHZ
+HUHDVRQHGWKDWKLVVXJJHVWLRQVDVWRKRZVKHVKRXOGKDQGOHWKH
VRPHWLPHVGLIILFXOW%RNHUZRXOGEHLPSURYHGLIKHZHUHH[SRVHGWR%RNHU
GLUHFWO\%XWWKDWZRXOGFRPSURPLVHWKHFOLHQWUHODWLRQVKLSRUGLQDULO\D
VWULFWUXOH7KLVWKRXJK ZDVVSHFLDO
+HVKUXJJHG-XVWZDLWLQJIRU\RX
,YHJRWWHQKHUPXFKEHWWHUVWUXFWXUHG+HUPRRGIOXWWHUVDUHEHORZ

]HURSRLQWWZR
*UHDW&DQ,VHH"
'LGKHUVPLOHVHHPZDUPHUWKDQXVXDO"+HZDVVWLOOZRQGHULQJDERXWWKDW
ZKHQKHUHDFKHGKLVRZQRIILFHDIWHUDQKRXURILQWXQLQJRQ-RDQ6\E\OKDG
FHUWDLQO\GRQHJRRGZRUN7KRURXJKLQWULFDWHO\PDWWHGLQZLWKWKHDQFLHQW
SHUVRQDOLW\WRSRJUDSK\
$OOVLQFH\HVWHUGD\"+HWKRXJKWQRW
7LPHWRGRDOLWWOHVQLIILQJDURXQGLQVLPVSDFH


9ROWDLUHORRPHGEURZVIXUURZHGVFRZOLQJKDQGVRQVNLQQ\KLSV+HURVH
IURPWKHULFKO\HPEURLGHUHGFKDLULQKLVVWXG\DW&LUH\WKHFKDWHDXRIKLV
ORQJWHUPPLVWUHVVWKH0DUTXLVHGX&KDWHOHW
7KHSODFHKHKDGFDOOHGKRPHIRUILIWHHQ\HDUVGHSUHVVHGKLPQRZWKDW
VKHZDVJRQH$QGQRZWKHPDUTXLVZLWKRXWWKHGHFHQF\WRZDLWXQWLOKLV
ZLIHVERG\ZDVFROGKDGLQIRUPHGKLPWKDWKHPXVWOHDYH
*HWPHRXWRIKHUH9ROWDLUHGHPDQGHGRIWKHVFLHQWLVWZKRILQDOO\
DQVZHUHGKLVFDOO6FLHQWLVWDIUHVKZRUGRQHQRGRXEWGHULYHGIURPWKH
/DWLQURRWWRNQRZ%XWWKLVIHOORZORRNHGDVWKRXJKKHNQHZOLWWOH,ZDQW
WRJRWRWKHFDIH,QHHGWRVHHWKH0DLG
7KHVFLHQWLVWOHDQHGRYHUWKHFRQWUROERDUG9ROWDLUHZDVDOUHDG\
EHJLQQLQJWRUHVHQWDQGVPLOHGZLWKWUDQVSDUHQWSOHDVXUHDWKLVSRZHU,
GLGQWWKLQNVKHZDV\RXUW\SH<RXVKRZHGDVWURQJSUHIHUHQFHDOO\RXUOLIH
UHPHPEHU,YHVFDQQHG\RXUPHPRULHV\RXKDYHQRVHFUHWVIRUEUDLQ\ZRPHQ
/LNH\RXUQLHFHDQGWKH0DGDPHGX&KDWHOHW
6R":KRWUXO\FDQDELGHWKHFRPSDQ\RIVWXSLGZRPHQ"7KHRQO\WKLQJ
WKDWFDQEHVDLGRQWKHLUEHKDOILVWKDWWKH\FDQEHWUXVWHGDVWKH\UHWRR
VWXSLGWRSUDFWLFHGHFHLW
8QOLNH0DGDPHGX&KDWHOHW"
9ROWDLUHGUXPPHGKLVILQJHUVLPSDWLHQWO\RQWKHEHDXWLIXOO\ZURXJKW
ZDOQXWGHVNDJLIWIURP0DGDPHGX&KDWHOHWKHUHFDOOHG+RZKDGLWJRWWHQWR
WKLVUXGHSODFH"&RXOGLWLQGHHGKDYHEHHQDVVHPEOHGIURPKLVPHPRU\DORQH"
7UXHVKHEHWUD\HGPH6KHSDLGGHDUO\IRULWWRR
7KHVFLHQWLVWDUFKHGDEURZ:LWKWKDW \RXQJRIILFHU\RXPHDQ"7KHRQH
ZKRPDGHKHUSUHJQDQW"
$WIRUW\WKUHHDPDUULHGZRPDQZLWKWKUHHJURZQFKLOGUHQKDVQR
EXVLQHVVEHFRPLQJSUHJQDQW
<RXKLWWKHURRIZKHQVKHWROG\RXXQGHUVWDQGDEOHEXWQRWYHU\
HQOLJKWHQHG<HW\RXGLGQWEUHDNRIIZLWKKHU<RXZHUHZLWKKHUWKURXJKRXW
WKHELUWK
9ROWDLUHIXPHG0HPRU\GDUNPHPRU\IORZLQJOLNHEODFNZDWHUVLQD
VXEWHUUDQHDQULYHU+HGZRUULHGKLPVHOIVLFNDERXWWKHELUWKZKLFKKDG
SURYHGDPD]LQJO\HDV\<HWQLQHGD\VODWHUWKHPRVWH[WUDRUGLQDU\ZRPDQKH
KDGHYHUNQRZQZDVGHDG2IFKLOGEHGIHYHU1RRQHQRWHYHQKLVQLHFHDQG
KRXVHNHHSHUDQGIRUPHUSDUDPRXU0DGDPH'HQLVZKRWRRNFDUHRIKLP
WKHUHDIWHUKDGHYHUEHHQDEOHWRWDNHKHUSODFH+HKDGPRXUQHGKHUXQWLO
XQWLOKHDSSURDFKHG WKHWKRXJKWYHHUHGDZD\WLOOKHGLHG
+HSXIIHGRXWKLVFKHHNVDQGVSDWEDFNUDSLGO\6KHSHUVXDGHGPHWKDW
LWZRXOGEHXQUHDVRQDEOHWREUHDNZLWKDZRPDQRIH[FHSWLRQDOEUHHGLQJDQG
WDOHQWPHUHO\IRUH[HUFLVLQJWKHVDPHULJKWVWKDW,HQMR\HG(VSHFLDOO\VLQFH
,KDGQWPDGHORYHWRKHUIRUPRQWKV7KHULJKWVRIPDQVKHVDLGEHORQJHGWR
ZRPHQWRRSURYLGHGWKH\ZHUHRIWKHDULVWRFUDF\,DOORZHGKHUJHQWOH
UHDVRQDEOHQHVVWRSHUVXDGHPH
$KWKHVFLHQWLVWVDLGHQLJPDWLFDOO\9ROWDLUHUXEEHGKLVIRUHKHDG
KHDY\ZLWKEURRGLQJUHPHPEUDQFH6KHZDVDQH[FHSWLRQWRHYHU\UXOH6KH
XQGHUVWRRG1HZWRQDQG/RFNH6KHXQGHUVWRRGHYHU\ZRUGWKDW,ZURWH6KH

XQGHUVWRRGPH
:K\ZHUHQW\RXPDNLQJORYHWRKHU"7RREXV\JRLQJWRRUJLHV"
0\GHDUVLUP\SDUWLFLSDWLRQLQVXFKIHVWLYLWLHVKDVEHHQJUHDWO\
H[DJJHUDWHG,WVWUXH,DFFHSWHGDQLQYLWDWLRQWRRQHVXFKFHOHEUDWLRQRI
HURWLFSOHDVXUHLQP\\RXWK,DFTXLWWHGP\VHOIVRZHOO,ZDVLQYLWHGWR
UHWXUQ
'LG\RX"
&HUWDLQO\QRW2QFHDSKLORVRSKHU7ZLFHDSHUYHUW
:KDW,GRQWXQGHUVWDQGLVZK\DPDQRI\RXUZRUOGOLQHVVVKRXOGEHVR
LQWHQWRQDQRWKHUPHHWLQJZLWKWKH0DLG
+HUSDVVLRQ9ROWDLUHVDLGDQLPDJHRIWKHUREXVW0DLGULVLQJFOHDUO\
LQKLVPLQGVH\H+HUFRXUDJHDQGGHYRWLRQWRZKDWVKHEHOLHYHG
<RXSRVVHVVHGWKDWWUDLWDVZHOO
9ROWDLUHVWRPSHGKLVIRRWEXWWKHIORRUPDGHQRVRXQG:K\GR\RX
VSHDNRIPHLQWKHSDVWWHQVH"
6RUU\,OOILOOLQWKDWDXGLREDFNJURXQGWRR$VLQJOHKDQGJHVWXUH
DQG9ROWDLUHKHDUGERDUGVFUHDNDVKHSDFHG$FDUULDJHWHDPFOLSFORSSHGE\
RXWVLGH
,SRVVHVVWHPSHUDPHQW'RQRWFRQIXVHSDVVLRQZLWKWHPSHUDPHQWZKLFK
LVDPDWWHURIWKHQHUYHV3DVVLRQLVERUQHIURPWKHKHDUWDQGVRXOQRPHUH
PHFKDQLVPRIWKHERGLO\KXPRUV
<RXEHOLHYHLQVRXOV"
,QHVVHQFHVFHUWDLQO\7KH0DLGGDUHGFOLQJWRKHUYLVLRQZLWKKHU
ZKROHKHDUWGHVSLWHEXOO\LQJE\FKXUFKDQGVWDWH+HUGHYRWLRQWRKHUYLVLRQ
XQOLNHPLQHERUHQRWDLQWRISHUYHUVHQHVV6KHZDVWKHILUVWWUXH3URWHVWDQW
,YHDOZD\VSUHIHUUHG3URWHVWDQWVWRSDSLVWDEVROXWLVWVXQWLO,WRRNXS
UHVLGHQFHLQ*HQHYDRQO\WRGLVFRYHUWKHLUSXEOLFKDWUHGRISOHDVXUHLVDV
JUHDWDVDQ\SRSHV2QO\4XDNHUVGRQRWSULYDWHO\HQJDJHLQZKDWWKH\
SXEOLFO\FODLPWRDEMXUH$ODVDKXQGUHGWUXHEHOLHYHUVFDQQRWUHGHHP
PLOOLRQVRIK\SRFULWHV
7KHVFLHQWLVWWZLVWHGKLVPRXWKVNHSWLFDOO\-RDQUHFDQWHGNQXFNOHG
XQGHUWRWKHLUWKUHDWV
7KH\WRRNKHUWRDFHPHWHU\9ROWDLUHEULVWOHGZLWKLUULWDWLRQ
7HUURUL]HGDFUHGXORXVJLUOZLWKWKUHDWVRIGHDWKDQGKHOO%LVKRSV
DFDGHPLFLDQVWKHPRVWOHDUQHGPHQRIWKHLUWLPH'RQNH\VDVVHVWKHORW
%URZEHDWLQJWKHEUDYHVWZRPDQLQ)UDQFHDZRPDQZKRPWKH\GHVWUR\HGRQO\WR
UHYHUH+\SRFULWHV7KH\UHTXLUHPDUW\UVDVOHHFKHVUHTXLUHEORRG7KH\WKULYH
RQVHOIVDFULILFHSURYLGHGWKDWWKHVHOYHVWKH\VDFULILFHDUHQRWWKHLURZQ
$OOZHKDYHLV\RXUYHUVLRQDQGKHUV2XUKLVWRU\GRHVQWJREDFNWKDW
IDU6WLOOZHNQRZPRUHRISHRSOHQRZ
6R\RXLPDJLQH9ROWDLUHVQLIIHGDMRWRIVQXIIWRFDOPKLPVHOI
9LOODLQVDUHXQGRQHE\ZKDWLVZRUVWLQWKHPKHURHVE\ZKDWLVEHVW7KH\
SOD\HGKHUKRQRUDQGKHUEUDYHU\OLNHDILGGOHVZLQHSOXFNLQJDWDYLROLQ
<RXUHGHIHQGLQJKHU7KHVFLHQWLVWVZU\VPLOHPRFNHG<HWLQWKDW
SRHP\RXZURWHDERXWKHUDPD]LQJVRPHRQHPHPRUL]LQJWKHLURZQZRUNVRWKH\
FRXOGUHFLWHLW\RXGHSLFWKHUDVDWDYHUQVOXWPXFKROGHUWKDQVKHLQIDFW
ZDVDOLDUDERXWKHUVRFDOOHGYRLFHVDVXSHUVWLWLRXVEXWVKUHZGIRRO7KH
JUHDWHVWHQHP\RIWKHFKDVWLW\VKHSUHWHQGVWRGHIHQGLVDGRQNH\DGRQNH\
ZLWKZLQJV
9ROWDLUHVPLOHG$EULOOLDQWPHWDSKRUIRUWKH5RPDQ&KXUFKQHVWFH
SDV",KDGDSRLQWWRPDNH6KHZDVVLPSO\WKHVZRUGZLWKZKLFK,GURYHLW
KRPH,KDGQRWPHW KHUWKHQ,KDGQRLGHDVKHZDVDZRPDQRIVXFKP\VWHULRXV
GHSWKV
1RWGHSWKVRILQWHOOHFW$SHDVDQW0DUTUHFDOOHGKRZKHKDGHVFDSHG
MXVWVXFKDIDWHRQWKHPXGJUXEELQJZRUOG%LHKOHXU$OOWKURXJKWKH*UH\V
H[DP$QGQRZKHKDGIOHGWKHLUVWRGJ\URXWLQHVLQWRDWUXHFXOWXUDO
UHYROXWLRQ

1RQR'HSWKVRIWKHVRXO,POLNHDOLWWOHVWUHDP&OHDUEHFDXVHLW
LVVKDOORZ%XWVKHVDULYHUDQRFHDQ5HWXUQPHWR$X['HX[0DJRWV6KHDQG
WKHZLQGXS*DUFRQDUHWKHRQO\VRFLHW\,QRZKDYH
6KHLV\RXUDGYHUVDU\WKHVFLHQWLVWVDLG$PLQLRQRIWKRVHZKR
XSKROGYDOXHVWKDW\RXIRXJKWDOO\RXUOLIH7RPDNHVXUH\RXEHDWKHU,P
JRLQJWRVXSSOHPHQW\RX
,DPLQWDFWDQGHQWLUH9ROWDLUHGHFODUHGIURVWLO\
,OOHTXLS\RXZLWKSKLORVRSKLFDODQGVFLHQWLILFLQIRUPDWLRQUDWLRQDO
SURJUHVV<RXUUHDVRQPXVWFUXVKKHUIDLWK<RXPXVWUHJDUGKHUDVWKHHQHP\
VKHLVLIFLYLOL]DWLRQLVWRFRQWLQXHWRDGYDQFHDORQJUDWLRQDOVFLHQWLILF
OLQHV
+LVHORTXHQFHDQGLPSXGHQFHZHUHUDWKHUFKDUPLQJEXWQRVXEVWLWXWHVIRU
9ROWDLUHVIDVFLQDWLRQZLWK-RDQ,UHIXVHWRUHDGDQ\WKLQJXQWLO\RXUHXQLWH
PHZLWKWKH0DLGLQWKHFDIH
7KHVFLHQWLVWKDGWKHDXGDFLW\WRODXJK<RXGRQWJHWLW<RXKDYHQR
FKRLFH,OOVFXOSWWKHLQIRUPDWLRQLQWR\RX<RXOO KDYHWKHLQIRUPDWLRQ\RX
QHHGWRZLQOLNHLWRUQRW
<RXYLRODWHP\LQWHJULW\
/HWVQRWIRUJHWWKDWDIWHUWKHGHEDWHWKHUHOOEHWKHTXHVWLRQRI
NHHSLQJ\RXUXQQLQJRU
(QGLQJPH"
-XVWVR\RXNQRZZKDWFDUGVDUHRQWKHWDEOH
9ROWDLUHEULVWOHG+HNQHZWKHLURQDFFHQWVRIDXWKRULW\VLQFHKHZDV
ILUVWVXEMHFWHGWRKLVIDWKHUVDVWULFWPDUWLQHWZKRGFRPSHOOHGKLPWR
DWWHQGPDVVDQGZKRVHDXVWHULWLHVFODLPHGWKHOLIHRI9ROWDLUHVPRWKHUZKHQ
9ROWDLUHZDVRQO\VHYHQ7KHRQO\ZD\VKHFRXOGHVFDSHKHUKXVEDQGV
GLVFLSOLQHZDVWRGLH9ROWDLUHKDGQRLQWHQWLRQRIHVFDSLQJWKLVVFLHQWLVWLQ
WKDWZD\
,UHIXVHWRXVHDQ\DGGLWLRQDONQRZOHGJH\RXJLYHPHXQOHVV\RXUHWXUQ
PHDWRQFHWRWKHFDIH
,QIXULDWLQJO\WKHVFLHQWLVWUHJDUGHG9ROWDLUHWKHZD\9ROWDLUHKDG
UHJDUGHGKLVZLJPDNHUZLWKKDXJKW\VXSHULRULW\+LVFXUOHGOLSVDLGTXLWH
FOHDUO\WKDWKHNQHZ9ROWDLUHFRXOGQRWH[LVWZLWKRXWKLVSDWURQDJH
$KXPEOLQJWXUQDERXW7KRXJKPLGGOHFODVVLQRULJLQKLPVHOI9ROWDLUH
GLGQRWEHOLHYHFRPPRQSHRSOHZRUWK\RIJRYHUQLQJWKHPVHOYHV7KHWKRXJKWRI
KLVZLJPDNHUSRVLQJDVDOHJLVODWRUZDVHQRXJKWRPDNHKLPQHYHUZHDUDZLJ
DJDLQ7REHVHHQVLPLODUO\E\WKLVYH[LQJVPXJVFLHQWLVWZDVLQWROHUDEOH
7HOO\RXZKDWVDLGWKHVFLHQWLVW<RXFRPSRVHRQHRI\RXUEULOOLDQW
OHWWUHVSKLORVRSKLTXHVWUDVKLQJWKHFRQFHSWRIWKHKXPDQVRXODQG,ZLOO
UHXQLWH\RXZLWKWKH0DLG%XWLI\RXGRQW\RXZRQWVHHKHUXQWLOWKHGD\
RIWKHGHEDWH&OHDU"
9ROWDLUHPXOOHGWKHRIIHURYHU&OHDUDV DOLWWOHVWUHDPKHVDLGDW
ODVW
DQGWKHQFORWWHGFLQGHUGDUNFORXGVGHVFHQGHGLQWRKLVPLQG
0HPRULHVVXOOHQDQGJULP+HIHOWHQJXOIHGLQDSDVWWKDWURDUHGWKURXJKKLP
VFRXULQJ
+HVF\FOLQJ7KHUHVVRPHWKLQJVXUIDFLQJKHUHFDPH0DUTVKROORZ
FDOO
,PDJHVRIWKHIDUSDVWH[SORGHG
&DOO6HOGRQ7KLVVLPKDVDQRWKHUOD\HU&DOO6HOGRQ


+DUL6HOGRQVWDUHGDWWKHLPDJHVDQGGDWDULYHUV9ROWDLUHVXIIHUHGD
UHFDOOVWRUP$QGORRNDWWKHLPSOLFDWLRQV
0DUTSHHUHGZLWKRXWFRPSUHKHQVLRQDWWKHWRUUHQW8K,VHH
7KDWSURPRQWRU\DPHPRU\QXJJHWDERXWDGHEDWHKHKDGZLWK-RDQHLJKW

WKRXVDQG\HDUVDJR
6RPHERG\XVHGWKHVHVLPVEHIRUH
)RUSXEOLFGHEDWH\HV+LVWRU\QRWRQO\UHSHDWVLWVHOI VRPHWLPHVLW
VWXWWHUV
)DLWKYV5HDVRQ"
)DLWK0HFKDQLFDOVYV5HDVRQ+XPDQ:LOO6HOGRQVDLGDVLIUHDGLQJ
WKHPGLUHFWO\IURPWKHQXPHULFDOFRPSOH[HV0DUTFRXOGQRWIROORZWKH
FRQQHFWLRQVIDVWHQRXJKWRNHHSXSZLWKKLP$VRFLHW\RIWKDWWLPHKDGD
IXQGDPHQWDOGLYLVLRQRYHUFRPSXWHULQWHOOLJHQFHVDQGWKHLUPDQLIHVWDWLRQV
0DUTFDXJKWDQHOXVLYHIOLFNHULQ6HOGRQVIDFH:DVKHKLGLQJ
VRPHWKLQJ"0DQLIHVWDWLRQV"<RXPHDQOLNHWLNWRNV"
6RPHWKLQJOLNHWKDW6HOGRQVDLGVWLIIO\
9ROWDLUHVIRU
,QWKDWDJHKHZDVIRUKXPDQHIIHUYHVFHQFH-RDQIDYRUHG)DLWKZKLFK
PHDQWXKWLNWRNV
,GRQWJHWLW
7WNWRNVRUKLJKHUIRUPVRIWKHPZHUHGHHPHGFDSDEOHRIJXLGLQJ
KXPDQLW\6HOGRQVHHPHGXQFRPIRUWDEOH
7LNWRNV"0DUTVQRUWHGGHULVLYHO\
2UXKKLJKHUIRUPV
7KDWVZKDW9ROWDLUHDQG-RDQZHUHGHEDWLQJHLJKWWKRXVDQG\HDUVDJR"
6RWKH\ZHUHHQJLQHHUHGIRUWKLV:KRZRQ"
7KHUHVXOWLVVXSSUHVVHG,EHOLHYHLWEHFDPHDQLUUHOHYDQWLVVXH1R
FRPSXWHULQWHOOLJHQFHVFRXOGEHPDGHZKLFKFRXOGJXLGHKXPDQLW\
0DUTQRGGHG0DNHVVHQVH0DFKLQHVZLOOQHYHUEHDVVPDUWDVZHDUH
'D\WRGD\EXVLQHVVVXUHEXW
,VXJJHVWHUDVXUHRIWKHHPEHGGHGPHPRU\FRPSOH[6HOGRQVDLGFXUWO\
7KDWZLOOHOLPLQDWHWKHLQWHUIHULQJOD\HU
2KLI\RXWKLQNWKDWVEHVW,PQRWVXUHZHFDQGLVFRQQHFWHYHU\WLH
LQWRWKRVHPHPRULHVWKRXJK7KHVHVLPVXVHKRORJUDSKLFUHFDOOVRLWV
ORGJHG
7RJHWWKHUHVXOWV\RXZLVKLQWKLVXSFRPLQJGHEDWHLWLVFUXFLDO
7KHUHFRXOGEHRWKHULPSOLFDWLRQVWRR
6XFKDV"
+LVWRULDQVPLJKWPLQHVLPVOLNHWKHVHIRUORVWGDWDRQWKHIDUSDVW
7KH\ZRXOGZDQWDFFHVV'HQ\WKHP
2KVXUH,PHDQQRWOLNHO\ZHGOHWDQ\ERG\XVHWKHP
6HOGRQJD]HGDWWKHVKLIWLQJVODEVRISDWWHUQ7KH\DUHFRPSOH[DUHQW
WKH\"0LQGVRIUHDOGHSWKLQWHUDFWLQJVXEVHOYHV2PPP,ZRQGHUKRZWKH
ZKROHVHQVHRIVHOIKRRGUHPDLQVVWDEOH"+RZFRPHWKHLUPHQWDOLWLHVGRQWMXVW
FUDVK"
0DUTFRXOGQWIROORZEXWKHVDLG,JXHVVWKRVHDQFLHQWVWKH\ NQHZD
IHZWULFNVZHGRQW
6HOGRQQRGGHG,QGHHG7KHUHVDJOLPPHURIDQLGHDKHUH
+HVWRRGTXLFNO\DQG0DUTURVH&RXOGQW\RXVWD\",NQRZ6\E\OZRXOG
OLNHWRWDON
6RUU\PXVWJR0DWWHUVRIVWDWH
8KZHOOWKDQNVIRU
6HOGRQZDVJRQHEHIRUH0DUTFRXOGFORVHKLVJDSLQJPRXWK


,KDYHQRGHVLUHWRVHHWKHVNLQQ\JHQWOHPDQLQWKHZLJ+HWKLQNVKHV
EHWWHUWKDQHYHU\RQHHOVHWKH0DLGWROGWKHVRUFHUHVVFDOOHG6\E\O
7UXHEXW
,PXFKSUHIHUWKHFRPSDQ\RIP\RZQYRLFHV
+HVTXLWHWDNHQZLWK\RX0DGDPHOD6RUFLqUHVDLG

,ILQGWKDWGLIILFXOWWREHOLHYH6WLOOVKHFRXOGQRWKHOSVPLOLQJ
2KEXWLWVWUXH+HVDVNHG0DUTKLVUHFUHDWRUIRUDQHQWLUHO\QHZ
LPDJH+HOLYHG\RXNQRZWRHLJKW\IRXU
+HORRNVHYHQROGHU6KHKDGIRXQGKLVZLJOLODFULEERQDQGYHOYHW
EUHHFKHVOXGLFURXVRQVXFKDGULHGXSILJRIDPDQ
0DUTGHFLGHGWRPDNHKLPDSSHDUDVKHORRNHGDWIRUW\WZR'RVHHKLP
7KH0DLGUHIOHFWHG0RQVLHXU$URXHWZRXOGEHIDU OHVVUHSXOVLYH
LI'LG0RQVLHXUKDYHDGLIIHUHQWWDLORUDVD\RXQJPDQ"
+PPPWKDWPLJKWEHDUUDQJHG
,PQRWJRLQJWRWKHLQQLQWKHVH
6KHKHOGXSKHUFKDLQVUHFDOOLQJWKHIXUFORDNWKHNLQJKLPVHOIKDG
SODFHGDERXWKHUVKRXOGHUVDWKLVFRURQDWLRQLQ5RXHQ6KHWKRXJKWRIDVNLQJ
IRULWQRZEXWGHFLGHGDJDLQVWLW7KH\KDGPDGHPXFKRIKHUFORDNGXULQJKHU
WULDODFFXVLQJKHURIKDYLQJDGHPRQLQVSLUHGORYHRIOX[XU\VKHZKRXQWLO
VKHZRQWKHNLQJRYHUWKDWGD\VKHILUVWDSSHDUHGDWFRXUW KDGIHOWQRWKLQJ
EXWFRDUVHEXUODSDJDLQVWKHUVNLQ+HUDFFXVHUVVKHKDGQRWHGZRUHEODFN
VDWLQDQGYHOYHWDQGUHHNHGRISHUIXPH
,OOGRZKDW,FDQ0DGDPHOD6RUFLqUHYRZHGEXW\RXPXVWDJUHHQRW
WRWHOO0RQVLHXU%RNHU+HGRHVQWZDQW\RXIUDWHUQL]LQJZLWKWKHHQHP\EXW,
WKLQNLWZLOOGR\RXJRRG+RQH\RXUVNLOOVIRUWKH*UHDW'HEDWH
7KHUHZDVDSDXVHIDOOLQJVRIWFORXGVLQZKLFKWKH0DLGIHOWDVLI
VKHKDGIDLQWHG:KHQVKHUHFRYHUHGKDUGFRROVXUIDFHVVXGGHQVKDUSVSODVKHV
RIEURZQJUHHQVKHIRXQGKHUVHOIVHDWHGLQWKH,QQRIWKH7ZR0DJJRWVRQFH
DJDLQVXUURXQGHGE\JXHVWVZKRVHHPHGQRWWRNQRZWKDWVKHZDVWKHUH
$UPRUSODWHGEHLQJVEHDULQJWUD\VDQGFOHDULQJWDEOHZDUHGDUWHGDPRQJ
WKHJXHVWV6KHORRNHGIRU*DUFRQDQGVSRWWHGKLPJD]LQJDWWKHKRQH\KDLUHG
FRRNZKRSUHWHQGHGQRWWRQRWLFH*DUFRQVORQJLQJUHFDOOHGWKHZD\WKH0DLG
KHUVHOIKDGJD]HGDWVWDWXHVRI6W&DWKHULQHDQG6W0DUJDUHWZKRKDGERWK
IRUVZRUQPHQEXWDGRSWHGWKHLUDWWLUHVXVSHQGHGEHWZHHQWZRZRUOGVKRO\
SDVVLRQDERYHHDUWK\DUGRUEHORZ-XVWDVKHUHZLWKLWVMDUULQJMDUJRQRI
QXPEHUVDQGPDFKLQHVWKRXJKVKHNQHZLWIRUDSXUJDWRULDOZDLWLQJFORLVWHU
IORDWLQJEHWZHHQWKHZRUOGV
6KHVXSSUHVVHGDVPLOHZKHQ0RQVLHXU$URXHWDSSHDUHG+HVSRUWHG DGDUN
XQSRZGHUHGZLJWKRXJKVWLOOORRNHGUDWKHUROGDERXWWKHDJHRIKHUIDWKHU
-DFTXHV'DUVWKLUW\SOXVRQHRUWZR+LVVKRXOGHUVVOXPSHGIRUZDUGXQGHUWKH
ZHLJKWRIPDQ\ERRNV6KHGRQO\VHHQERRNVWZLFHGXULQJKHUWULDOVDQG
WKRXJKWKH\ORRNHGQRWKLQJOLNHWKHVHVKHUHFRLOHGDWWKHPHPRU\RIWKHLU
SRZHU
$ORUV0RQVLHXU$URXHWVDLGVHWWLQJWKHERRNVEHIRUHKHU)RUW\WZR
YROXPHV0\6HOHFWHG:RUNV,QFRPSOHWHEXWKHVPLOHGIRUQRZLWZLOO
KDYHWRGR:KDWVZURQJ"
'R\RXPRFNPH"<RXNQRZ,FDQQRWUHDG
,NQRZ*DUFRQ$'0LVJRLQJWRWHDFK\RX
,GRQRWZDQWWROHDUQ$OOERRNVH[FHSWWKH%LEOHDUHERUQRIWKH
GHYLO
0RQVLHXU$URXHWWKUHZXSKLVKDQGVDQGODSVHGLQWRFXUVHVYLROHQWDQG
LQWULJXLQJRDWKVOLNHWKRVHKHUVROGLHUVXVHGZKHQWKH\IRUJRWWKDWVKHZDV
QHDU<RXPXVWOHDUQKRZWRUHDG.QRZOHGJHLVSRZHU
7KHGHYLOPXVWNQRZDJUHDWGHDOVKHVDLGFDUHIXOWROHWQRSDUWRI
WKHERRNVWRXFKKHU
0RQVLHXU$URXHWH[DVSHUDWHGWXUQHGWRWKHVRUFHUHVVZKRDSSHDUHGWR
EHVLWWLQJDWDQHDUE\WDEOHDQGVDLG9DF&DQW\RXWHDFKKHUDQ\WKLQJ"
7KHQKHWXUQHGEDFNWRKHU+RZZLOO\RXDSSUHFLDWHP\EULOOLDQFHLI\RX
FDQWHYHQUHDG"
,KDYHQRXVHIRULW
+D+DG\RXEHHQDEOHWRUHDG\RXGKDYHFRQIRXQGHGWKRVHLGLRWVZKR
VHQW\RXWRWKHVWDNH

$OOOHDUQHGPHQVKHVDLG/LNH\RX
1RSXFHOOHWWHQRWOLNHPH1RWOLNHPHDWDOO$VLILWZHUHD
VHUSHQWVKHUHFRLOHGIURPWKHERRNKHKHOGRXW*ULQQLQJKHUXEEHGWKHERRN
DOORYHUKLPVHOIDQG*DUFRQZKRZDVQRZVWDQGLQJEHVLGHWKHWDEOH,WV
KDUPOHVVVHH"
(YLOLVRIWHQLQYLVLEOHVKHPXUPXUHG
0RQVLHXULVULJKW*DUFRQWROGKHU$OOWKHEHVWSHRSOHUHDG
+DG\RXEHHQOHWWHUHG0RQVLHXU$URXHWVDLG\RXGKDYHNQRZQWKDW
\RXULQTXLVLWRUVKDGDEVROXWHO\QRULJKWWRWU\\RX<RXZHUHDSULVRQHURI
ZDUVHL]HGLQEDWWOH<RXU(QJOLVKFDSWRUKDGQROHJDOULJKWWRKDYH\RXU
UHOLJLRXVYLHZVH[DPLQHGE\)UHQFKLQTXLVLWRUVDQGDFDGHPLFV<RXSUHWHQGHGWR
EHOLHYH\RXUYRLFHVZHUHGLYLQH
3UHWHQGHGVKHFULHGRXW
DQGKHSUHWHQGHGWREHOLHYHWKH\ZHUHGHPRQLF7KH(QJOLVKDUH
WKHPVHOYHVWRRWROHUDQWWREXUQDQ\RQHDWWKHVWDNH7KH\OHDYHVXFKIRUPVRI
DPXVHPHQWWRRXUFRXQWU\PHQWKH)UHQFK
1RWWRRWROHUDQWWKH0DLGVDLGWRWXUQPHRYHUWRWKHELVKRSRI
%HDXYDLVFODLPLQJ,ZDVDZLWFK6KHORRNHGDZD\XQZLOOLQJWROHWKLPSHHU
LQKHUH\HV3HUKDSV,DP,EHWUD\HGP\RZQYRLFHV
9RLFHVRIFRQVFLHQFHQRWKLQJPRUH7KHSDJDQ6RFUDWHVKHDUGWKHPDV
ZHOO(YHU\RQHGRHV%XWLWVXQUHDVRQDEOHWRVDFULILFHRXUOLYHVWRWKHPLI
RQO\EHFDXVHWRGHVWUR\RXUVHOYHVRQWKHLUDFFRXQWLVWRGHVWUR\WKHPWRR
+HVXFNHGUHIOHFWLYHO\RQKLVWHHWK3HUVRQVRIJRRGEUHHGLQJEHWUD\WKHPDV
DPDWWHURIFRXUVH
$QGZHKHUH"-RDQZKLVSHUHG+HQDUURZHGKLVH\HV7KHVHRWKHUV"
7KHVFLHQWLVWV"
7KH\DUHVSHFWUDO
/LNHGHPRQV"<HWWKH\VSHDNRIUHDVRQ7KH\KDYHUDLVHGDUHSXEOLFRI
DQDO\VLV
6RWKH\VD\LWLV<HWWKH\KDYHDVNHGXVWRUHSUHVHQWZKDWWKH\GRQRW
KDYH
<RXWKLQNWKHPEORRGOHVV9ROWDLUHWZLVWHGKLVPRXWKLQVXUSULVHG
VSHFXODWLRQ
,WKLQNZHOLVWHQWRWKHVDPHVFLHQWLVWVVRZHDUHEHLQJWHVWHGLQ
WKHVDPHWULDO
,KHHGYRLFHVVXFKDVWKHLUV9ROWDLUHVDLGGHIHQVLYHO\,DWOHDVW
NQRZZKHQWRWXUQP\KHDGDVLGHIURPPLQGOHVVDGYLFH
3HUKDSV0RQVLHXUVYRLFHVDUHVRIW*DUFRQVXJJHVWHG7KHUHIRUHPRUH
HDVLO\LJQRUHG
,OHWWKHPFKXUFKO\PHQIRUFHPHWRDGPLWP\YRLFHVZHUHWKH
GHYLOVVDLGWKH0DLGZKHQDOOWKHZKLOH,NQHZWKH\ZHUHGLYLQH,VQW
WKDWWKHDFWRIDGHPRQ"$ZLWFK"
/LVWHQ0RQVLHXU$URXHWJULSSHGKHUE\WKHDUPV7KHUHDUHQR
ZLWFKHV7KHRQO\GHPRQVLQ\RXUOLIHZHUHWKRVHZKRVHQW\RXWRWKHVWDNH
,JQRUDQWVZLQHWKHORW([FHSWIRU\RXU(QJOLVKFDSWRUZKRSUHWHQGHGWR
EHOLHYH\RXZHUHDZLWFKWRFDUU\RXWDVKUHZGSROLWLFDOPRYH:KHQ\RXU
JDUPHQWVKDGEXPPHGDZD\KLVGXSHVUHPRYHG\RXUERG\IURPWKHVWDNHWRVKRZ
WKHFURZGDQGWKHLQTXLVLWRUV\RXZHUHLQGHHGDIHPDOHZKRLIIRUQRRWKHU
UHDVRQWKDQXVXUSLQJWKHSULYLOHJHVRIPDOHVGHVHUYHG\RXUIDWH
3OHDVHVWRSVKHVDLG6KHWKRXJKWVKHVPHOOHGWKHRLO\UHHNRIVPRNH
DOWKRXJK0RQVLHXU$URXHWKDGPDGH*DUFRQSODFH12602.,1*VLJQVWKURXJKRXWWKH
LQQZKLFKDEUXSWO\WKH\ZHUHQRZLQVLGH7KHURRPYHHUHGZKLUOHG7KH
ILUH6KHJDVSHG,WVWRQJXHV
7KDWVHQRXJKWKHVRUFHUHVVVDLG&DQW\RXVHH\RXUHXSVHWWLQJ
KHU"/D\RII
%XW0RQVLHXU$URXHWSHUVLVWHG7KH\H[DPLQHG\RXUSULYDWHSDUWVDIWHU
\RXUJDUPHQWVEXPPHGDZD\GLGQWNQRZWKDWGLG\RX"MXVWDVWKH\GGRQH

EHIRUHWRSURYH\RXZHUHWKHYLUJLQWKDW\RXFODLPHG$QGKDYLQJVDWLVILHG
WKHLUOHZGQHVVLQWKHQDPHRIKROLQHVVWKH\UHWXUQHG\RXWRWKHS\UHDQG
FKDUUHG\RXUERQHVWRDVKHV7KDWZDVKRZ\RXUFRXQWU\PHQUHTXLWHG\RXIRU
FKDPSLRQLQJWKHLUNLQJ)RUVHHLQJWRLW)UDQFHUHPDLQHGIRUHYHU)UHQFK$QG
KDYLQJLQFLQHUDWHG\RXDZKLOHODWHUWKH\KHOGDKHDULQJFLWHGVRPHUXUDO
UXPRUWKDW\RXUKHDUWKDGQRWEHHQFRQVXPHGLQWKHILUHDQGSURPSWO\GHFODUHG
\RXDQDWLRQDOKHURLQHWKH6DYLRURI)UDQFH,ZRXOGQWEHDWDOOVXUSULVHG
LIE\QRZWKH\KDYHFDQRQL]HG\RXDQGUHYHUH\RXDVDVDLQW
,Q/D6RUFLqUHVDLG7KRXJKKRZVKHNQHZWKLVRGGQXPEHUVKH
GLGQRWFRPSUHKHQG$QJHOLFNQRZOHGJH"
0RQVLHXU$URXHWVVSOXWWHURIVFRUQFUDFNOHGLQKHUHDUV
0XFKJRRGLWGLGKHU0RQVLHXU$URXHWVDLGWR/D6RUFLqUH
7KDWGDWHZDVLQDQDWWHQGDQWQRWH/D6RUFLqUHVDLGKHUHDUQHVW
YRLFHLQLWVIDFWXDOPRGH7KRXJKRIFRXUVHZHKDYHQRFRRUGLQDWHVWRNQRZ
ZKDWWKHQXPEHUVPHDQ,WLVQRZRIWKH*DODFWLF(UD
6FRUFKLQJORJLFVIDQQHGWKHFUDFNOLQJDLU+RWZLQGVEOXUUHGWKHFURZG
RIRQORRNHUVJDWKHUHGDURXQGWKHVWDNH
)LUH7KH0DLGJDVSHG&OXWFKLQJWKHPHVKFROODUDWKHUWKURDWVKH
IOHGLQWRWKHFRROGDUNRIREOLYLRQ


,WVDERXWWLPH9ROWDLUHVFROGHG0DGDPHOD6FLHQWLVWH6KHKXQJ
EHIRUHKLPOLNHDQDQLPDWHGRLOSDLQWLQJ+HKDGFKRVHQWKLVUHSUHVHQWDWLRQ
ILQGLQJLWRGGO\UHDVVXULQJ
,KDYHQWEHHQLJQRULQJ\RXRQSXUSRVHVKHVDLGFRRODQG
EXVLQHVVOLNH
+RZGDUH\RXVORZPHZLWKRXWP\FRQVHQW"
0DUTDQG,DUHEHLQJEHVLHJHGE\PHGLDSHRSOH,QHYHUGUHDPHGWKH
*UHDW'HEDWHZRXOGEHWKHPHGLDHYHQWRIWKHGHFDGH7KH\DOOZDQWDFKDQFHWR
LQWHUYLHZ\RXDQG-RDQ
9ROWDLUHIOXIIHGWKHDSULFRWULEERQDWKLVWKURDW,UHIXVHWREHVHHQ
E\WKHPZLWKRXWP\SRZGHUHGZLJ
:HUHQRWJRLQJWROHWWKHPVHH\RXRUWKH0DLGDWDOO7KH\FDQWDON
WR0DUTDOOWKH\ZDQW+HOLNHVDWWHQWLRQDQGKDQGOHVLWZHOO+HVD\VSXEOLF
H[SRVXUHZLOOKHOSKLVFDUHHU
,VKRXOGWKLQN,ZRXOGEHFRQVXOWHGEHIRUHVXFKLPSRUWDQWGHFLVLRQV
/RRN,FDPHDVVRRQDVP\PHFKVHFEHHSHGPH,OHW\RXUXQRQVWHS
GRZQWLPHWRSROLFHXS\RXUSDWWHUQLQWHJUDWLRQ<RXVKRXOGEHJUDWHIXOWKDW
,JLYH\RXLQWHULRUWLPH
&RQWHPSODWLRQ"KHVQLIIHG7KDWVRQHZD\WRORRNDWLW
,GLGQRWUHDOL]HWKDWVXFKZRXOGKDYHWREHJUDQWHG9ROWDLUHZDV
LQKLVULFKO\DSSRLQWHGURRPVDW)UHGHULFNWKH*UHDWVFRXUWSOD\LQJFKHVV
ZLWKWKHIULDUZKRPKHHPSOR\HGWROHWKLPZLQ
,WFRVWV$QGFRVWEHQHILWDQDO\VLVVKRZVWKDWLWZRXOGEHEHWWHULIZH
UDQ\RXWZRWRJHWKHU
1RVROLWXGH",WVLPSRVVLEOHWRKROGDUDWLRQDOFRQYHUVDWLRQZLWKWKH
ZRPDQ
+HWXUQHGKLVEDFNRQKHUIRUPD[LPXPGUDPDWLFHIIHFW+HKDGEHHQD
ILQHDFWRUHYHU\RQHZKRGKHDUGKLPSHUIRUPLQKLVSOD\VDW)UHGHULFNVFRXUW
VDLGVR+HNQHZDJRRGVFHQHZKHQKHVDZRQHDQGWKLVRQHKDGGUDPDWLF
SRWHQWLDO7KHVHFUHDWXUHVZHUHVRSDOOLGVRXQXVHGWRWKHJXVWVRIUDZ
HPRWLRQDUWIXOO\FUDIWHG
+HUYRLFHVRIWHQHG*HWULGRIKLPDQG,OOXSGDWH\RX
+HWXUQHGDQGOLIWHGDVLQJOHWKLQ ILQJHUDWWKHJRRGQDWXUHGIULDUWKH
RQO\PDQRIWKHFORWKKHKDGHYHUPHWZKRPKHFRXOGVWDQG7KHPDQVKXIIOHG
RIIFORVLQJWKHFDUYHGRDNGRRUFDUHIXOO\

9ROWDLUHWRRNDVLSRI)UHGHULFNVILQHVKHUU\WRFOHDUKLVWKURDW,
ZDQW\RXWRH[SXQJHWKH0DLGVPHPRU\RIKHUILQDORUGHDO,WLPSHGHVRXU
FRQYHUVDWLRQDVVXUHO\DVELVKRSVDQGVWDWHRIILFLDOVLPSHGHWKHSXEOLFDWLRQ
RILQWHOOLJHQWZRUN%HVLGHV+HSDXVHGXQFRPIRUWDEOHDWH[SUHVVLQJ
IHHOLQJVVRIWHUWKDQLUULWDWLRQVKHVVXIIHULQJ,FDQQRWEHDUWRVHH
LW
,GRQWWKLQN
$QGZKLOH\RXUHDWLWREOLWHUDWHIURPPHWRRP\PHPRU\RIWKH
HOHYHQPRQWKV,VHUYHGLQWKH%DVWLOOH$QGDOOP\IUHTXHQWIOLJKWVIURP
3DULVQRWWKHIOLJKWVWKHPVHOYHVPLQG\RXP\SHULRGVRIH[LOHFRQVWLWXWH
PRVWRIP\OLIH-XVWGHOHWHWKHLUFDXVHVQRWWKHHIIHFWV
:HOO,GRQWNQRZ
+HVODPPHGDILVWGRZQRQDQRUQDWHO\ZURXJKWRDNVLGHWDEOH8QOHVV
\RXOLEHUDWHPHIURPSDVWIHDUV,FDQQRWDFWIUHHO\
6LPSOHORJLF
6LQFHZKHQLVORJLFVLPSOH",FDQQRWVLPSO\FRPSRVHP\OHWWUH
SKLORVRSKLTXHRQWKHDEVXUGLW\RIGHQ\LQJWKRVHOLNH*DUFRQ$'0WKHULJKWV
RIPDQRQWKHJURXQGVWKDWWKH\KDYHQRVRXO+HVDQDPXVLQJOLWWOHIHOORZ
GRQW\RXWKLQN"$QGDVVPDUWDVDWOHDVWDGR]HQSULHVWVZKRP,KDYHNQRZQ
'RHVKHQRWVSHDN"5HVSRQG"'HVLUH"+HLVLQIDWXDWHGZLWKDKXPDQFRRN6KRXOG
KHQRWEHDEOHWRSXUVXHKDSSLQHVVDVIUHHO\DV\RXRU,",IKHKDVQRVRXO
WKHQ\RXKDYHQRVRXOHLWKHU,I\RXKDYHDVRXOLWFDQRQO\EHLQIHUUHG
IURP\RXUEHKDYLRUDQGVLQFHZHPD\PDNHWKHLGHQWLFDOLQIHUHQFHIURPWKH
EHKDYLRURI*DUFRQVRGRHVKH
,PLQFOLQHGWRDJUHH0DGDPHOD6FLHQWLVWHVDLG7KRXJKRIFRXUVH
$'0VUHDFWLRQVDUHVLPXODWLRQV6HOIDZDUHPDFKLQHVKDYHEHHQLOOHJDOIRU
PLOOHQQLD
7KDWLVZKDW,FKDOOHQJH9ROWDLUHVKRXWHG
$QGKRZPXFKRIWKDWFRPHVIURP6DUNLDQSURJUDPPLQJ"
1RQH7KHULJKWVRIPDQ
+DUGO\QHHGDSSO\WRPDFKLQHV
9ROWDLUHVFRZOHG,FDQQRWH[SUHVVP\VHOIFRPSOHWHO\ IUHHO\RQWKHVH
VHQVLWLYHPDWWHUVXQOHVV\RXULGPHRIWKHPHPRU\RIZKDW,VXIIHUHGIRU
H[SUHVVLQJP\LGHDV
%XW\RXUSDVWLV\RXUVHOI:LWKRXWDOORILWLQWDFW
1RQVHQVH7KHWUXWKLV,QHYHUGDUHGH[SUHVVP\VHOIIUHHO\RQPDQ\
PDWWHUV7DNHWKDWOLIHKDWLQJ3XULWDQ3DVFDOKLVYLHZVRIRULJLQDOVLQ
PLUDFOHVDQGPXFKRWKHUQRQVHQVHEHVLGHV,GLGQWGDUHVD\ZKDW,UHDOO\
WKRXJKW$OZD\V,KDGWRFDOFXODWHZKDWHYHU\DVVDXOWRQFRQYHQWLRQDQG
WUDGLWLRQDOVWXSLGLW\ZRXOGFRVW
0DGDPHOD 6FLHQWLVWHSXUVHGKHUOLSVSUHWWLO\<RXGLGZHOOHQRXJK,
ZRXOGJXHVV<RXZHUHIDPRXV:HGRQWNQRZ\RXUKLVWRU\RUHYHQ\RXUZRUOG
%XWIURP\RXUPHPRULHV,FDQWHOO
$QGWKH0DLG6KHLVWKZDUWHGPRUHWKDQ,)RUKHUFRQYLFWLRQVVKH
SDLGWKH XOWLPDWHSULFH%HLQJFUXFLILHGFRXOGEHQRZRUVHWKDQZKDWVKH
VXIIHUHGDWWKHVWDNH/LJKWDJRRGO\SLSHDV,ORYHWRGREHIRUHKHUDQG
KHUH\HVUROOZLWKFRQIXVLRQ
%XWWKDWVFUXFLDOWRZKRVKHLV
5DWLRQDOLQTXLULHVFDQQRWEHFDUULHGRXWLQ DQDWPRVSKHUHRIIHDUDQG
LQWLPLGDWLRQ,IRXUFRQWHVWLVWREHIDLU,LPSORUH\RXULGXVRIWKHVH
WHUURUVWKDWSUHYHQWXVIURPVSHDNLQJRXUPLQGVDQGIURPHQFRXUDJLQJRWKHUV
WRVSHDNWKHLUV(OVHWKLVGHEDWHZLOOEHOLNHDUDFHUXQZLWKEULFNVWLHGWR
WKHUXQQHUVDQNOHV
0DGDPHOD6FLHQWLVWHGLGQRWUHVSRQGDWRQFH,,GOLNHWRKHOSEXW
,PQRWVXUH,FDQ
9ROWDLUHVSOXWWHUHGZLWKVFRUQ,NQRZHQRXJKRI\RXUSURFHGXUHVWR
NQRZ\RXFDQFRPSO\ZLWKP\UHTXHVW

7KDWSRVHVQRSUREOHPWUXH%XWPRUDOO\,PQRWDWOLEHUW\WRWDPSHU
ZLWKWKH0DLGVSURJUDPDWZKLP
9ROWDLUHVWLIIHQHG,UHDOL]H0DGDPHKDVDORZRSLQLRQRIP\
SKLORVRSK\EXWVXUHO\
1RWVR,WKLQNWKHZRUOGRI\RX<RXKDYHDPRGHUQPLQGDQGIURPWKH
GHSWKVRIWKH GDUNSDVWDVWRQLVKLQJ,ZLVKWKH(PSLUHKDGPHQOLNH\RX%XW
\RXUSRLQWRIYLHZWKRXJKYDOLGDVIDUDVLWJRHVLVOLPLWHGEHFDXVHRIZKDW
LWOHDYHVRXWDQGFDQQRWDGGUHVV
0\SKLORVRSK\",WHPEUDFHVDOODXQLYHUVDOYLHZ
$QG,ZRUNIRU$UWLILFH$VVRFLDWHVDQGWKH3UHVHUYHUVIRU0U%RNHU
,PERXQGE\HWKLFVWRJLYHWKHPWKH0DLGWKH\ZDQW8QOHVV,FRXOGFRQYLQFH
WKHPWRGHOHWHWKH0DLGVPHPRU\RIKHUPDUW\UGRP,FDQWGRLW$QG0DUT
ZRXOGKDYHWRJHWSHUPLVVLRQIURPWKHFRPSDQ\DQGWKH6NHSWLFVWRGHOHWH
\RXUV+HGORYHWR,DVVXUH\RX+LV6NHSWLFVDUHPRUHOLNHO\WRFRQVHQW
WKDQP\3UHVHUYHUV,WZRXOGJLYH\RXDQDGYDQWDJH
,TXLWHDJUHHKHFRQFHGHGDWRQFH5HOLHYLQJPHRIP\EXUGHQV
ZLWKRXWULGGLQJWKH0DLGRIKHUVZRXOGQRWEHUDWLRQDORUHWKLFDO1HLWKHU
/RFNHQRU1HZWRQZRXOGDSSURYH
0DGDPHOD6FLHQWLVWHGLGQRWDQVZHUDWRQFH,//WDONWRP\ERVVDQG
WR0RQVLHXU%RNHUVKHVDLGDWODVW%XW,ZRXOGQWKROGP\EUHDWKLI,ZHUH
\RX
9ROWDLUHVPLOHGZU\O\DQGVDLG0DGDPHIRUJHWV,KDYHQREUHDWKWR
KROG


7KHLFRQIODVKLQJRQ0DUTVERDUGVWRSSHGMXVWDVKHHQWHUHGKLVRIILFH
7KDWPHDQW6\E\OPXVWKDYHDQVZHUHGLWLQKHUV
0DUTEULVWOHGZLWKVXVSLFLRQ7KH\KDGDJUHHGQRWWRWDONWRHDFK
RWKHUVUHFUHDWLRQVDORQHWKRXJKHDFKKDGDOUHDG\JLYHQWKHRWKHUWKH
UHTXLUHGSURJUDPPLQJWRGRLW7KH0DLGQHYHULQLWLDWHGFRPPXQLFDWLRQZKLFK
PHDQWWKHFDOOHUZDV9ROWDLUH
+RZGDUH6\E\OERRWXSZLWKRXWKLP+HVWRUPHGRXWRIWKHRIILFHWROHW
KHUDQG9ROWDLUHERWKNQRZH[DFWO\ZKDWKHWKRXJKWRIWKHLUFRQVSLULQJEHKLQG
KLVEDFN%XWLQWKHFRUULGRUKHZDVEHVLHJHGE\FDPHUDVMRXUQDOLVWVDQG
UHSRUWHUV,WZDVILIWHHQPLQXWHVEHIRUHKHEXUVWLQWR6\E\OVRIILFHDQG
VXUHHQRXJKFDXJKWKHUFORVHWHGFR]LO\ZLWK9ROWDLUH6KHGUHGXFHGKLPIURP
ZDOOVL]HGWRKXPDQVFDOH
<RXEURNHRXUSDFW0DUTVKRXWHG:KDWDUH\RXGRLQJ"7U\LQJWRXVH
KLVLQIDWXDWLRQZLWKWKDWVFKL]RSKUHQLFWRPDNHKLPWKURZWKHGHEDWH"
6\E\OKHDGEXULHGLQKHUKDQGVORRNHGXS+HUH\HVJOLVWHQHGZLWK
WHDUV0DUTIHOWVRPHWKLQJLQKLPUROORYHUEXWKHFKRVHWRLJQRUHLW6KH
DFWXDOO\EOHZ9ROWDLUHDNLVVEHIRUHIUHH]LQJKLP
,PXVWVD\,QHYHUWKRXJKW\RXGVLQNWRWKLV
7RZKDW"6\E\OJRWKHUIDFHEDFNWRJHWKHUDQGMXWWHGRXWKHUMDZ
:KDWVJRWWHQLQWR\RXUXVXDOMDXQW\VHOI"
:KDWZDVWKDWDOODERXW"
:KHQKHKHDUG0DUTPDUFKHGEDFNLQWRKLVRIILFHDQGERRWHGXS9ROWDLUH
%HIRUHWKHLPDJHIXOO\IRUPHGFRORUEORFNVSKDVLQJLQKHVKRXWHG7KH
DQVZHULVQR
,DPVXUH\RXKDYHDQHODERUDWHV\OORJLVPIRUPH9ROWDLUHVDLG
VDUGRQLFDOO\XQIUHH]LQJ
0DUTKDGWRDGPLWWKDWWKHVLPKDQGOHGWKHVXGGHQOXUFKHVDQG
GLVDSSHDUDQFHVLQLWVIUDPHVSDFHZLWKDSORPE/RRNKHVDLGHYHQO\,ZDQW
WKH5RVHRI)UDQFHZLOWLQJLQKHUDUPRUWKHGD\RIWKHGHEDWH,WZLOOUHPLQG
KHURIKHULQTXLVLWLRQH[DFWO\6KHOOVWDUWEDEEOLQJQRQVHQVHDQGUHYHDOWR
WKHSODQHWMXVWKRZEDQNUXSW)DLWKZLWKRXW5HDVRQLV

9ROWDLUHVWDPSHGKLVIRRW0HUGHDORUV:HGLVDJUHH1HYHU PLQGPH
EXW,LQVLVW\RXGHOHWHWKH0DLGVPHPRU\RIKHUILQDOKRXUVVRWKDWKHU
UHDVRQLQJZLOOQRWEHFRPSURPLVHGDVPLQHVRRIWHQZDVE\IHDURI
UHSULVDOV
1RWSRVVLEOH%RNHUZDQWHG)DLWKKHJHWVDOORILW
1RQVHQVH$OVR,GHPDQG\RXOHWPHYLVLWKHUDQGWKDWRGGPDLV
FKDUPDQWFXULRVLW\*DUFRQLQWKHFDIpDWZLOO,YHQHYHUNQRZQEHLQJVOLNH
HLWKHURIWKHPEHIRUHDQGWKH\DUHWKHRQO\VRFLHW\WKDW,QRZKDYH
:KDWDERXWPH"0DUTWKRXJKW%HQHDWKWKHQHHGWRNHHSWKLVVLPLQOLQH
KHDGPLUHGWKHVNLQQ\IHOORZ7KLVZDVDSRZHUIXOLPSUHVVLYHLQWHOOHFWEXW
PRUHWKHSHUVRQDOLW\FDPHWKURXJKEULVWOLQJZLWKSRZHU9ROWDLUHKDGOLYHGLQ
DULVLQJDJH0DUTHQYLHGWKDWZDQWHGWREH9ROWDLUHVIULHQG:KDWDERXWPH"
%XWZKDWKHVDLGZDV,GRQWVXSSRVHLWVRFFXUUHGWR\RXWKDWWKH
ORVHURIWKHGHEDWHZLOOEHFRQVLJQHGIRUHYHUWRREOLYLRQ
9ROWDLUHEOLQNHGKLVIDFHJLYLQJQRWKLQJDZD\
<RXFDQWIRROPH0DUTVDLG,NQRZ\RXZDQWPRUHWKDQMXVW
LQWHOOHFWXDOLPPRUWDOLW\
,GR"
7KDW\RXDOUHDG\KDYH<RXYHEHHQUHFUHDWHG
,DVVXUH\RXP\GHILQLWLRQRIOLYLQJLVPRUHWKDQEHFRPLQJDSDWWHUQ
RIQXPEHUV
7KDWERWKHUHG0DUTEXWKHSDVVHGLWRYHUIRUWKHPRPHQW5HPHPEHU,
FDQUHDG\RXUPHPVSDFH,KDSSHQWRUHFDOOWKDWRQFHZKHQ\RXZHUHZHOO
DGYDQFHGLQ\HDUVXQIRUFHGE\\RXUIDWKHUDQGRI\RXURZQIUHHZLOO\RX
DFWXDOO\UHFHLYHG(DVWHUFRPPXQLRQ
$KEXW,UHIXVHGLWDWWKHHQG$OO,ZDQWHGZDVWREHOHIWWRGLHLQ
SHDFH
$OORZPHWRTXRWHIURP\RXUIDPRXVSRHP7KH/LVERQ(DUWKTXDNH3DUW
RIWKHDQFLOODU\PHPRU\VSDFH
6DGLVWKHSUHVHQWLIQRIXWXUHVWDWH1REOLVVIXOUHWULEXWLRQPRUWDOV
ZDLW
,IIDWHVGHFUHHVWKHWKLQNLQJEHLQJGRRP
7RORVHH[LVWHQFHLQWKHVLOHQWWRPE
9ROWDLUHZDYHUHG7UXH,VDLGWKDWDQGZLWKZKDWHORTXHQFH%XW
HYHU\RQHZKRHQMR\VOLIHORQJVWRH[WHQGLW
<RXURQO\FKDQFHDWDIXWXUHVWDWHLVWRZLQWKHGHEDWH,WVDJDLQVW
\RXURZQEHVWLQWHUHVWDQGZHDOONQRZKRZIRQG\RXYHDOZD\VEHHQRIWKDW
WRGHOHWHWKH0DLGVPHPRU\RIEHLQJEXUQHGDOLYH
9ROWDLUHVFRZOHG0DUTFRXOGVHHUXQQLQJLQGLFHVRQKLVVLGHVFUHHQ
%DVLV6WDWHIOXFWXDWLRQVZHOOERXQGHGEXWWKHHQYHORSHZDVJURZLQJDQRUDQJH
F\OLQGHUIDWWHQLQJLQVSDFHELOORZLQJRXWXQGHUSUHVVXUHIURPWKHTXLFN
VNLWWHULQJWDQJOHVLQVLGH(PRWLRQ$JHQWVLQWHUFKDQJLQJSDFNHWVDWKLJKVSHHG
LQGLFDWLQJDFXVSSRLQWDSSURDFKLQJ
0DUTVWURNHGDSDG,WZDVWHPSWLQJWRPDNHWKHVLPEHOLHYHZKDW0DUT
ZDQWHGEXWWKDWZRXOGEHWULFN\+HZRXOGKDYHWRLQWHJUDWHWKHLGHDFOXVWHU
LQWRWKHZKROHSHUVRQDOLW\6HOIV\QWKHVLVZRUNHGPXFKEHWWHU%XWLWFRXOG
RQO\EHQXGJHGQRWIRUFHG
9ROWDLUHVPRRGGDUNHQHG0DUTVDZEXWWKHIDFHVWHSSHGGRZQLQWR
VORZPRVKRZHGRQO\DSHQVLYHVWDUH,WKDGWDNHQ0DUT\HDUVWROHDUQWKDW
SHRSOHDQGVLPVDOLNHFRXOGPDVNWKHLUHPRWLRQVTXLWHZHOO
7U\DOLWWOHKXPRUPD\EH+HWKXPEHGEDFNWRSDFHDQGVDLG,I\RX
JLYHPHD KDUGWLPHIHOOD,PJRLQJWRJLYHKHUWKDWVFXUULORXVSRHP\RX
ZURWHDERXWKHU
/D3XFHOOH"<RXZRXOGQW
:RXOGQW,<RXOOEHOXFN\LIVKHHYHUVSHDNVWR\RXDJDLQ
$FDQQ\VPLUN0RQVLHXUIRUJHWVWKH0DLGGRHVQRWNQRZKRZWRUHDG
,OOVHHWRLWVKHOHDUQV2UEHWWHU\HWUHDGLWWRKHUP\VHOI

,OOLWHUDWHVXUHEXWVKHGDPQVXUHLVQWGHDI
9ROWDLUHJODUHGPXWWHULQJ%HWZHHQ6F\OODDQG&KDU\EGLV
:KDWZDVWKDWPLQGSORWWLQJVKDUSDVDVFDOSHO"+HRULWZDV
LQWHJUDWLQJLQWRWKLVGLJLWDOZRUOGIDVWHUWKDQDQ\VLP0DUTKDGHYHUNQRZQ
2QFHWKHGHEDWHZDVRYHU0DUTYRZHGWRVWULSWKDWPLQGGRZQDQGVWXG\LWV
FXWWLQJHGJHVDJDLQSXWLWVSURFHVVRUOD\RXWVXQGHUWKHVFRSH$QGWKHUHZDV
WKDWRGGPHPRU\IURPHLJKWWKRXVDQG\HDUVDJRWRR6HOGRQKDGEHHQDELWRGG
DERXWWKDW
,SURPLVHWRSURGXFHODOHWWUHLI\RXZLOOMXVWOHWPHVHHKHURQFH
PRUH,QUHWXUQ\RXOOYRZQHYHUWRVRPXFKDVPHQWLRQ/D3XFHOHWRWKH
0DLG
1RIXQQ\EXVLQHVV0DUTZDUQHG,OOZDWFK\RXUHYHU\PRYH
$V\RXZLVK
0DUTUHWXUQHG9ROWDLUHWRWKHFDIHZKHUH-RDQDQG*DUFRQ$'0ZHUH
ZDLWLQJUXQQLQJWKHLURZQLQWURVSHFWLRQV+HGEDUHO\FDOOHGWKHPXSZKHQKH
ZDVPRPHQWDULO\GLVWUDFWHGE\DNQRFNRQKLVGRRU1LP
.DII"
6XUH0DUTJODQFHGEDFNDWWKHFDIHVLP/HWWKHPYLVLWDZKLOH7KH
PRUH9ROWDLUHNQHZWKHVKDUSHUKHGEHODWHU*RWDQ\RIWKDWVHQVRSRZGHU"
%HHQDWRXJKGD\


<RXURUGHUVVDLG*DUFRQ$'0ZLWKDIORXULVK
+HZDVKDYLQJGLIILFXOW\IROORZLQJWKHDUJXPHQWVEHWZHHQWKH0DLGDQG
WKH0RQVLHXURQZKHWKHUEHLQJVOLNHKLPVHOISRVVHVVHGDVRXO0RQVLHXUVHHPHG
WREHOLHYHWKDWQRRQHDWDOOKDGDVRXOZKLFKRXWUDJHGWKH0DLG7KH\DUJXHG
ZLWKVXFKKHDWWKH\GLGQRWQRWLFHWKHGLVDSSHDUDQFHRI WKHRGGJKRVWSUHVHQFH
ZKRXVXDOO\ZDWFKHGWKHPDSURJUDPPHURIWKLVVSDFH
1RZZDV*DUFRQVFKDQFHWRLPSORUH0RQVLHXUWRLQWHUYHQHRQKLVEHKDOI
DQGDVNKLVKXPDQPDVWHUVWRJLYHKLPDQDPH$'0ZDVMXVWDPHFKIRON
FRGHLGHQWLILHGKLVIXQFWLRQPHFKZDLWHUSODFHGKLPLQWKLV6HFWRUDQG
$'0VWRRGIRU$X['HX[0DJRWV+HZDVVXUHKHGKDYHDEHWWHUFKDQFHRI
DWWUDFWLQJWKHKRQH\KDLUHGVKRUWRUGHUFRRNVDWWHQWLRQLIKHKDGDKXPDQ
QDPH
0RQVLHXU0DGDPH<RXURUGHUVSOHDVH
:KDWJRRGLVRUGHULQJ"0RQVLHXUVQDSSHG3DWLHQFH*DUFRQREVHUYHG
ZDVQRWLPSURYHGE\OHDUQLQJ:HFDQQRWWDVWHDWKLQJ
*DUFRQJHVWXUHGV\PSDWKHWLFDOO\ZLWKWZRRIKLVIRXUKDQGV+HKDGQR
H[SHULHQFHRIKXPDQVHQVHVH[FHSWVLJKWVRXQGDQGUXGLPHQWDU\WRXFKWKRVH
QHFHVVDU\WRSHUIRUPKLVMRE+HZRXOGKDYHJLYHQDQ\WKLQJWRWDVWHWRIHHO
KXPDQVVHHPHGWRGHULYHVXFKSOHDVXUHIURPLW
7KH0DLGSHUXVHGWKHPHQXDQGFKDQJLQJWKHVXEMHFWVDLG,OOKDYHP\
XVXDO$FUXVWRIEUHDG,OOWU\DVRXUGRXJK EDJXHWWHFUXVWIRUDFKDQJH
$VRXUGRXJKEDJXHWWH0RQVLHXUHFKRHG
DQGWRGLSLWLQDELWRIFKDPSDJQH
0RQVLHXUVKRRNKLVKDQGDVLIWRFRROLWRII,FRPPHQG\RX*DUFRQ
IRUGRLQJVXFKDILQHMRERIWHDFKLQJWKH0DLGWRUHDGWKHPHQX
0DGDPH/D6FLHQWLVWHSHUPLWWHGLW*DUFRQVDLGKHGLGQRWZDQW
WURXEOHZLWKKLVKXPDQPDVWHUVZKRFRXOGSXOOWKHSOXJRQKLPDWDQ\WLPH
0RQVLHXUZDYHGDGLVPLVVLYHKDQG6KHVPXFKWRRGHWDLOREVHVVHG6KHG
QHYHUVXUYLYHRQKHURZQLQ3DULVPXFKOHVVDWDQ\UR\DOFRXUW0DUT
KRZHYHUZLOOJRIDU/DFNRIVFUXSOHVLVIRUWXQHVIDYRULWHJUHDVH,
FHUWDLQO\GLGQRWSURFHHGIURPSHQXU\WREHLQJRQHRIWKHZHDOWKLHVWFLWL]HQV
LQ)UDQFHE\FRQIXVLQJLGHDOVZLWKVFUXSOHV
+DV0RQVLHXUGHFLGHGRQKLVRUGHU"*DUFRQDVNHG
<HV<RXUHWRLQVWUXFWWKH0DLGLQPRUHDGYDQFHGWH[WVVRWKDWVKHFDQ

UHDGP\SRHP2QWKH1HZWRQLDQ3KLORVRSK\DORQJZLWKDOOP\OHWWUHV
3KLORVRSKLTXHV+HUUHDVRQLQJLVWREHFRPHDVHTXDODVSRVVLEOHZLWKP\RZQ
1RWWKDWDQ\RQHVUHDVRQLVOLNHO\WREHFRPHVRKHDGGHGZLWKKLVFRFN\
VPLOH
<RXUPRGHVW\LVHTXDOHGRQO\E\\RXUZLWVDLGWKH0DLGGUDZLQJIURP
0RQVLHXUDVPLUN\ODXJK
*DUFRQVDGO\VKRRNKLVKHDG,PDIUDLGWKDWZRQWEHSRVVLEOH,DP
XQDEOHWR LQVWUXFWDQ\RQHH[FHSWLQVLPSOHSKUDVHV0\OLWHUDF\SHUPLWV
FRPSUHKHQVLRQRIQRWKLQJEH\RQGPHQXV,PKRQRUHGE\0RQVLHXUVGHVLUHWR
DGYDQFHP\VWDWLRQ%XWHYHQZKHQRSSRUWXQLW\NQRFNV,DQGP\NLQGFRQVLJQHG
IRUHYHUWRWKHORZHVWOHYHOVRIVRFLHW\FDQQRWDQVZHUWKHGRRU
7KHORZHUFODVVHVRXJKWWRNHHSWKHLUSODFH9ROWDLUHDVVXUHGKLP
%XW,OOPDNHDQH[FHSWLRQLQ\RXUFDVH<RXVHHPDPELWLRXV$UH\RX"
*DUFRQJODQFHGDWWKHKRQH\KDLUHGFRRN$PELWLRQLVXQVXLWHGWRRQHRI
P\UDQN
:KDWZRXOG\RXEHWKHQ",I\RXFRXOGEHDQ\WKLQJ\RXOLNH"
*DUFRQKDSSHQHGWRNQRZWKDWWKHFRRNVSHQWKHUWKUHHGD\VDZHHNRII
*DUFRQKLPVHOIZRUNHGVHYHQGD\VDZHHNLQWKHFRUULGRUVRIWKH/RXYUH$
PHFKJXLGHDWWKH/RXYUHKHVDLG2QHVPDUWHQRXJKDQGZLWKVXIILFLHQW
OHLVXUHWRFRXUWDZRPDQZKREDUHO\NQRZV,H[LVW
0RQVLHXUVDLGJUDQGO\,OOILQGDZD\WRKRZGRWKH\VD\LW"
'RZQORDGKLPWKH0DLGYROXQWHHUHG
0RQGLHX0RQVLHXUH[FODLPHG$OUHDG\VKHFDQUHDGDVZHOODV\RX
%XW,ZLOOQRWKDYHKHUZLWH[FHHGPLQH7KDWZRXOGEHJRLQJWRRGDPQHGIDU
LQGHHG


0DUTSXIIHGWKHSDFNHWLQWRKLVQRVHDQGZDLWHGIRUWKHUXVK
7KDWEDG"1LPVLJQDOHGWKH6SODVKHV 6QLIIVPHFKPDLGIRUDQRWKHU
9ROWDLUH0DUTJUXPEOHG+HUHDFKHGWKHWRSRIWKHVWLPOLIWKLVPLQG
JHWWLQJVKDUSHUDQGVRPHKRZDWWKHVDPHWLPHOD]LHU+HKDGQHYHUTXLWHZRUNHG
RXWKRZWKDWFRXOGEH+HVVXSSRVHGWREHP\FUHDWXUHEXWKDOIWKHWLPH
LWVOLNH,PKLV
+HVDEXQFKRIQXPEHUV
6XUHEXW2QFH,HDYHVGURSSHGRQKLVVXEFRQVFLRXVVHQWHQFHIRUPLQJ
$JHQWDQGKHZDVIUDPLQJDEXQFKRIVWXIIDERXWZLOOLVVRXOVHOILPDJH
PDLQWHQDQFHVWXII,WKLQN
3KLORVRSK\FRXOGEH
:LOOKHVJRWIRUVXUH6R,YHFUHDWHGDEHLQJZLWKDVRXO"
&DWHJRU\HUURU1LPVDLG<RXUHDEVWUDFWLQJVRXORXWRI$JHQWV
7KDWVOLNHWU\LQJWRJRIURPDWRPVWRFRZVLQRQHMXPS
7KDWVWKHNLQGRIOHDSWKLVVLPPDNHV
<RXZDQWWRXQGHUVWDQGDFRZ\RXGRQWORRNIRUFRZDWRPV
5LJKW\RXJRIRUWKHHPHUJHQWSURSHUW\6WDQGDUGWKHRU\
7KLVVLPLVSUHGLFWDEOHEXGG\5HPHPEHUWKDW<RXWDLORUKLPXQWLO
KHVJRWQRQRQOLQHDUHOHPHQWV\RXFDQWFRQWDLQ
0DUTQRGGHG+HVGLIIHUHQW6RSRZHUIXO
+HJRWVLPPHGIRUDUHDVRQZD\EDFNLQWKH'DUN$JHVVRPHZKHUH'LG
\RXH[SHFWDGRRUPDW"2QHZKRZRXOGQWJLYH\RXDKDUGWLPH"<RXUHSUHVHQW
DXWKRULW\ZKLFKKHEDWWOHGDOOKLVOLIH
0DUTUDQILQJHUVWKURXJKKLVZDY\KDLU6XUHLI,ILQGDQRQOLQHDU
FRQVWHOODWLRQ,FDQWDEVWUDFWRXW
FDOOLWDZLOORUDVRXODQGGHOHWHLW1LPVODSSHGWKHWDEOHKDUG
PDNLQJDZRPDQQHDUE\JLYHWKHPDVWDUWOHGJODQFH
0DUTJDYHKLPDPRFNLQJVNHSWLFDOORRN7KHV\VWHPLVQWFRPSOHWHO\
SUHGLFWDEOH

6R \RXODXQFKDSDWWHUQVQLIIHU%DFNWUDFHRQLW6WLWFKLQVXE
$JHQWVKDQGFXIIDQ\SHUVRQDV\RXFDQWIL[+H\\RXLQYHQWHGWKRVHFRJQLWLYH
FRQVWUDLQWDOJRULWKPV<RXUHWKHEHVW
0DUTQRGGHG$QGZKDWLILWVOLNHFXWWLQJLQWRDEUDLQLQVHDUFKRI
FRQVFLRXVQHVV"+HWRRNDGHHSEUHDWKDQGH[KDOHGWRZDUGWKHGRPHGFHLOLQJ
ZKHUHDPLQGOHVVHQWHUWDLQPHQWSOD\HGSUHVXPDEO\IRUWKRVHFRQNHGRIIRQ
VWLII$Q\ZD\LWVQRWMXVWKLP0DUTPHW1LPVH\HV,ULJJHG6\E\OV
RIILFH,HDYHVGURSRQKHUPHHWLQJVZLWK%RNHU
1LPVODSSHGKLPRQWKHVKRXOGHU*RRGIRU\RX
0DUTODXJKHG$EXGG\VWLFNVZLWK\RXHYHQLI\RXUHKDYLQJDVWXSLG
VWRUP7KDWLVQWDOO
1LPOHDQHGIRUZDUGER\LVKO\FXULRXV
,WKLQN,ZHQWWRRIDU0DUTVDLG
<RXJRWFDXJKW
1RQR<RXNQRZKRZ6\E\OLV6KHGRHVQWVXVSHFWLQWULJXHIURP
HQHPLHVPXFKOHVVIULHQGV
0DQHXYHULQJLVQWKHUVWURQJVXLW
,PQRWVXUHLWVPLQHHLWKHU0DUTVDLG
8PPP1LPJDYHKLPDVKUHZGORRNH\HVKDOIFORVHG6RZKDWHOVH
GLG\RXGR"
0DUTVLJKHG,XSGDWHG9ROWDLUH*DYHKLPFURVVOHDUQLQJSURJUDPVWR
IOHVKRXWKLVGHHSFRQIOLFWVKHOSKLPUHFRQFLOHWKHP
1LPVH\HVZLGHQHG5LVN\
,ZDQWHGWRVHHZKDWDPLQGOLNHWKDWFRXOGGR:KHQZLOO,JHWDQRWKHU
FKDQFH"
+RZGR\RXIHHODERXWLWWKRXJK"
0DUTFKXIIHG1LPRQWKHVKRXOGHUWRKLGHKLVHPEDUUDVVPHQW
.LQGDURWWHQ6\E\ODQG,ERWKDJUHHGQRWWRGRLW
)DLWKGRHVQWQHHGWREHWRRVPDUW
,WKRXJKWRIWKDWH[FXVHWRR
:KDWVWKDWJX\6HOGRQWKLQNRIDOOWKLV"
:HKDYHQWWROGKLP
$K
+HZDQWVLWWKDWZD\.HHSVKLVKDQGVFOHDQ
1LPQRGGHG/RRNEXGG\GHHGVGRQH+RZGLGWKHVLPWDNHLW"
-ROWHGKLP%LJRVFLOODWLRQVRQWKHQHXUDOQHWV
2ND\QRZWKRXJK"
6HHPVVR,WKLQNKHVUHLQWHJUDWHG
'RHV\RXUFOLHQWNQRZ"
<HV7KH6NHSWLFVDUHDOOIRULW,IRUHVHHQRSUREOHPWKHUH
<RXUHGRLQJUHDOUHVHDUFKRQWKLVRQH1LPVDLG*RRGIRUWKHILHOG
,PSRUWDQW
6RKRZFRPH,IHHOOLNHKDYLQJPD\EH DGR]HQRUVRVQLIIV"+HMHUNHGD
WKXPEDWWKHPRURQPRYLHRQWKHFHLOLQJ6RWKDW,OOOROOEDFNDQGWKLQN
WKDWVWHUULIVWXII"


1RZSD\DWWHQWLRQ9ROWDLUHVDLGZKHQWKHVFLHQWLVWDWODVWDQVZHUHG
KLVFDOO&DUHIXOO\
+HFOHDUHGKLVWKURDWIOXQJRXWKLVDUPVDQGUHDGLHGKLPVHOIWR
GHFODLPWKHEULOOLDQWDUJXPHQWVKHGGHWDLOHGDOOVKDSHGLQDQRWKHUOHWWUH
7KHVFLHQWLVWVH\HVZHUHVOLWVKLVIDFHSDOH9ROWDLUHZDVLUNHG
'RQW\RXZDQWWRKHDU"
+DQJRYHU
<RXYHGLVFRYHUHGDVLQJOHJHQHUDOWKHRU\H[SODLQLQJZK\WKHXQLYHUVH
VRYDVWLVWKHRQO\SRVVLEOHRQHLWVIRUFHVDOOH[DFWDQGKDYHQRFXUHIRU

KDQJRYHU"
1RWP\DUHDKHVDLGUDJJHGO\$VNDSK\VLFLVW
9ROWDLUHFOLFNHGKHHOVWKHQERZHGLQWKH3UXVVLDQZD\KHGOHDUQHGDW
)UHGHULFNWKH*UHDWVFRXUW 7KRXJKKHKDGDOZD\VPXWWHUHGWRKLPVHOI*HUPDQ
SXSSHWVDVKHGLGVR 7KHGRFWULQHRIDVRXOGHSHQGVRQWKHLGHDRIDIL[HG
DQGLPPXWDEOHVHOI1RHYLGHQFHVXSSRUWVWKHQRWLRQRIDVWDEOH,DQ
HVVHQWLDOHJRHQWLW\O\LQJEH\RQGHDFKLQGLYLGXDOH[LVWHQFH
7UXHVDLGWKHVFLHQWLVWWKRXJKRGGFRPLQJIURP\RX
'RQWLQWHUUXSW1RZKRZFDQZHH[SODLQWKHVWXEERUQLOOXVLRQRID
IL[HGVHOIRUVRXO"7KURXJKILYHIXQFWLRQVWKHPVHOYHVFRQFHSWXDOSURFHVVHV
DQGQRWIL[HGHOHPHQWV)LUVWDOOEHLQJVSRVVHVVSK\VLFDOPDWHULDO
TXDOLWLHVZKLFKFKDQJHVRVORZO\WKDWWKH\DSSHDUWREHIL[HGEXWZKLFKDUH
DFWXDOO\LQFRQVWDQWPDWHULDOIOX[
7KHVRXOVVXSSRVHGWRRXWODVWWKRVH7KHVFLHQWLVWSLQFKHGWKHEULGJH
RIKLVQRVHEHWZHHQWKXPEDQGIRUHILQJHU
1RLQWHUUXSWLRQV6HFRQGWKHUHLVWKHLOOXVLRQRIDIL[HGHPRWLRQDO
PDNHXSZKHQDFWXDOO\IHHOLQJVDVHYHQWKDWUXGHSOD\ZULJKW6KDNHVSHDUH
SRLQWHGRXWZD[DQGZDQHDVLQFRQVWDQWO\DVWKHPRRQ7KH\WRRDUHLQ
FRQVWDQWIOX[WKRXJKQRGRXEWWKHVHPRWLRQVMXVWOLNHWKHPRRQVREH\
SK\VLFDOODZV
+H\ZDLW7KDWVWXIIHDUOLHUDERXWWKHWKHRU\RIWKHXQLYHUVHGLG
\RXNQRZWKDWEDFNLQWKRVH'DUN$JHV"
,GHGXFHGLWIURPWKHDXJPHQWDWLRQV\RXJDYHPH
7KHPDQEOLQNHGREYLRXVO\LPSUHVVHG,KDGQWDQWLFLSDWHG
9ROWDLUHVXSSUHVVHGKLVLUULWDWLRQ$Q\DXGLHQFHHYHQRQHWKDWLQVLVWHG
RQSDUWLFLSDWLQJZDVEHWWHUWKDQQRQH/HWKLPFDWFKXSZLWKWKHLPSOLFDWLRQV
RIKLVRZQDFWLRQVLQKLVRZQ JRRGWLPH7KLUGSHUFHSWLRQ7KHVHQVHV
XSRQH[DPLQDWLRQDOVRWXUQRXWWREHSURFHVVHVLQFRQVWDQWPRWLRQQRWLQ
WKHOHDVWIL[HG
7KHVRXO
)RXUWK9ROWDLUHZDVGHWHUPLQHGWRLJQRUHEDQDOLQWHUSRODWLRQV
(YHU\RQHKDVKDELWVGHYHORSHGRYHUWKH\HDUV%XWWKHVHWRRDUHPDGHXSRI
FRQVWDQWIORZLQJDFWLRQ'HVSLWHWKHDSSHDUDQFHRIUHSHWLWLRQWKHUHVQRWKLQJ
IL[HGRULPPXWDEOHKHUH
7KH*UDQG8QLYHUVDO7KHRU\WKDWVZKDW\RXDFFHVVHGULJKW"+RZG\RX
FUDFNWKHILOHV",GLGQWJLYH\RX
)LQDOO\WKHSKHQRPHQRQRIFRQVFLRXVQHVVWKHVRFDOOHGVRXOLWVHOI
%HOLHYHGE\SULHVWVDQGIRROVDUHGXQGDQF\WKDWWREHGHWDFKDEOHIURPWKH
IRXUSKHQRPHQD,YHQDPHG%XWFRQVFLRXVQHVVLWVHOIH[KLELWVFKDUDFWHULVWLFV
RIIORZLQJPRWLRQDVZLWKWKHRWKHUIRXU$OOILYHRIWKHVHIXQFWLRQVDUH
FRQVWDQWO\JURXSLQJDQGUHJURXSLQJ7KHERG\LVIRUHYHULQIOX[DVLVDOO
HOVH3HUPDQHQFHLVDQLOOXVLRQ+HUDFOLWXVZDVDEVROXWHO\ULJKW<RXFDQQRW
VHWIRRWLQWRWKHVDPH ULYHUWZLFH7KHKXQJRYHUPDQ,PUHJDUGLQJQRZSDXVH
EXWDVHFRQGLVQRWWKHVDPHKXQJRYHUPDQ,DPUHJDUGLQJQRZ(YHU\WKLQJLV
GLVVROXWLRQDQGGHFD\
7KHVFLHQWLVWFRXJKHGJURDQHG'DPQULJKW
DVZHOODVJURZLQJEORVVRPLQJ&RQVFLRXVQHVVLWVHOIFDQQRWEH
VHSDUDWHGIURPLWVFRQWHQWV:HDUHSXUHGHHG7KHUHLVQRGRHU7KHGDQFHU
FDQWEHVHSDUDWHGIURPWKHGDQFH6FLHQFHDIWHUP\WLPHFRQILUPVWKLVYLHZ
/RRNHGDWFORVHO\WKHDWRPLWVHOIGLVDSSHDUV7KHUHLVQRDWRPVWULFWO\
VSHDNLQJ7KHUHLVRQO\ZKDWWKHDWRPGRHV)XQFWLRQLVHYHU\WKLQJ(UJR
WKHUHLVQRIL[HGDEVROXWHHQWLW\FRPPRQO\NQRZQDVVRXO
)XQQ\\RXVKRXOGEULQJXSWKHLVVXHVDLGWKHVFLHQWLVWORRNLQJDW
9ROWDLUHPHDQLQJIXOO\
+HZDYHGDZD\WKHSRLQW6LQFHHYHQUXGLPHQWDU\DUWLILFLDO
LQWHOOLJHQFHVVXFKDV*DUFRQH[KLELWDOOWKHIXQFWLRQDOFKDUDFWHULVWLFV,KDYH
QDPHGHYHQVRLWZRXOGDSSHDUFRQVFLRXVQHVVLWLVXQUHDVRQDEOHWRZLWKKROG

IURPWKHPULJKWVWKDWZHHQMR\WKRXJKDOORZLQJQDWXUDOO\IRUFODVV
GLIIHUHQFHV6LQFHLQWKLVGLVWDQWHUDIDUPHUVVKRSNHHSHUVDQGZLJPDNHUVDUH
JUDQWHGSULYLOHJHVHTXDOZLWKWKRVHRIGXNHVDQGHDUOVLWLVLUUDWLRQDOWR
ZLWKKROGVXFKSULYLOHJHVIURPEHLQJVVXFKDV*DUFRQ
,IWKHUHVQRVRXOWKHUHVREYLRXVO\QRUHLQFDUQDWLRQRILWHLWKHU
ULJKW"
0\GHDUVLUWREHERUQWZLFHLVQRPRUHRGGWKDQWREHERUQRQFH
7KLVVWDUWOHGWKHVFLHQWLVW%XWZKDWVUHLQFDUQDWHG":KDWFURVVHVRYHU
IURPRQHOLIHWRWKHQH[W",IWKHUHVQRIL[HGDEVROXWHVHOI"1RVRXO"
9ROWDLUHPDGHDQRWHLQWKHPDUJLQRIKLVOHWWUH,I\RXPHPRUL]HP\
SRHPVZKLFKIRU\RXURZQHQOLJKWHQPHQW,XUJH\RXGRGRWKH\ORVHDQ\WKLQJ
\RXJDLQ",I\RXOLJKWDFDQGOHIURPDQRWKHUFDQGOHVIODPHZKDWFURVVHV
RYHU",QDUHOD\UDFHGRHVRQHUXQQHUJLYHXSDQ\WKLQJWRWKHRWKHU"+LV
SRVLWLRQRQWKHFRXUVHQRPRUH9ROWDLUHSDXVHGIRUGUDPDWLFHIIHFW:HOO"
:KDWGR\RXWKLQN"
7KHVFLHQWLVWFOXWFKHGKLVVWXSHILHGKHDG,WKLQN\RXOOZLQWKH
GHEDWH
9ROWDLUHGHFLGHGQRZZDVWKHWLPHWRSXWIRUZDUGKLVUHTXHVW%XWWR
DVVXUHP\YLFWRU\,PXVWFRPSRVHDQDGGLWLRQDOOHWWUHPRUHWHFKQLFDOIRU
W\SHVZKRHTXDWHYHUEDOV\PEROVZLWKPHUHUKHWRULFZLWKHPSW\ZRUGV
+DYHDWLWVDLGWKHVFLHQWLVW
)RUWKDW9ROWDLUHVDLG,ZLOOQHHG\RXUKHOS
<RXJRWLW
9ROWDLUHVPLOHGZLWKZKDWKHKRSHGZDVDQDSSHDOLQJVLQFHULW\VLQFH
WKDWZDVZKDWKHPRVWFHUWDLQO\ZDVQRW<RXPXVWJLYHPHHYHU\WKLQJ\RXNQRZ
RIVLPXODWLRQPHWKRGV
:KDW":K\"
7KLVZLOOQRWPHUHO\VSDUH\RXLPPHQVHODERU,WZLOOHQDEOHPHWR
ZULWHDWHFKQLFDOOHWWUHDLPHGDWFRQYHUWLQJVSHFLDOLVWVDQGH[SHUWVWRRXU
SRLQWRIYLHZ)DUPRUHWKDQWKRVHLQ-XQLQ6HFWRU$OO7UDQWRUWKHQDOOWKH
*DOD[\PXVWEHFRQYHUWHGRUHOVHUHDFWLRQDULHVVKDOOUHERXQGDQGFUXVK\RXU
YDXQWHGUHQDLVVDQFH
<RXOOQHYHUEHDEOHWRIROORZWKHPDWK
7KH1HZWRQLDQFDOFXODWLRQV,EURXJKWWR)UDQFH,UHPLQG\RX*LYHPH
WKHWRROV
&OXWFKLQJKLVWHPSOHVWKHVFLHQWLVWVOXPSHGIRUZDUGRYHUKLVFRQWURO
ERDUGZLWKDPRDQ2QO\LI\RXSURPLVHQRWWRFDOOPHIRUDWOHDVWWKHQH[W
WHQKRXUV
0DLVRXLVDLG9ROWDLUHZLWKDQLPSLVKVPLOH0RQVLHXUUHTXLUHVWLPH
KRZGR\RXVD\LWHQ$QJODLV"WRVOHHSLWRII


6\E\OZDLWHGQHUYRXVO\IRUKHUWXUQRQWKHDJHQGDRIWKHH[HFXWLYH
PHHWLQJRI$UWLILFH$VVRFLDWHV6KHVDWRSSRVLWH0DUTFRQWULEXWLQJQRWKLQJWR
WKHGLVFXVVLRQDVFROOHDJXHVDQGVXSHULRUVGLVFXVVHGWKLVDVSHFWDQGWKDWRI
WKHFRPSDQ\VRSHUDWLRQ+HUPLQGZDVHOVHZKHUHEXWQRWVRIDUJRQHDVWR
IDLOWRQRWLFHWKHFXUO\KDLURQWKHEDFNRI0DUTVKDQGVDQGDVLQJOHYHLQ
WKDWSXOVHGVHQVXRXVPXVLFLQKLVQHFN
$VWKHSUHVLGHQWRI$UWLILFH$VVRFLDWHVGLVPLVVHGDOOWKRVHQRWGLUHFWO\
LQYROYHGLQWKH3UHVHUYHU6NHSWLF3URMHFW6\E\ODVVHPEOHGWKHQRWHVVKHG
SUHSDUHG WRSUHVHQWKHUFDVH2IWKRVHSUHVHQWVKHNQHZVKHFRXOGFRXQWRQO\
RQ0DUTVVXSSRUW%XWVKHZDVFRQILGHQWWKDWZLWKLWWKHRWKHUVZRXOGJR
DORQJZLWKKHUSURSRVDO
7KHGD\EHIRUHVKHKDGWROGWKH6SHFLDO3URMHFWV&RPPLWWHHIRUWKH
ILUVWWLPHWKH0DLGKDGEURNHQKHUUHFOXVLYHSDWWHUQ6KHLQLWLDWHGFRQWDFW
LQVWHDGRIZDLWLQJWREHVXPPRQHGWUDLOLQJKHUXVXDODLURIUHOXFWDQFH6KHG

EHHQGHHSO\GLVWXUEHGWROHDUQ IURP0RQVLHXU$URXHWWKDWVKHPXVWGHIHDWKLP
LQZKDWVKHFDOOHGWKHWULDORUHOVHEHFRQVLJQHGRQFHDJDLQWRREOLYLRQ
:KHQ6\E\OKDGDFNQRZOHGJHGWKDWWKDWZDVSUREDEO\WUXHWKH0DLGEHFDPH
FRQYLQFHGWKDWVKHZDVJRLQJWREHFDVWDJDLQLQWRWKH ILUH'LVRULHQWHGDQG
FRQIXVHGVKHEHJJHG6\E\OWRDOORZKHUWRUHWLUHWRFRQVXOWKHUYRLFHV
6\E\OKDGIXUQLVKHGKHUZLWKUHVWIXOZDOOSDSHUEDFNJURXQGVIRUHVW
ILHOGVWLQNOLQJVWUHDPV
6KHSUREHGIRUYHVWLJLDOPHPRULHVOLNHWKRVH0DUTKDGPHQWLRQHGRID
GHEDWH\HDUVDJR-RDQGLGFDUU\WUDFHVMXVWELWVVRPHRQHKDG
RYHUORRNHGLQDSUHYLRXVHUDVLQJ-RDQLGHQWLILHG)DLWKZLWKVRPHWKLQJFDOOHG
URERWV$SSDUHQWO\WKHVHZHUHP\WKLFDOILJXUHVZKRZRXOGJXLGHKXPDQLW\
SHUKDSVVRPHGHLWLHV"
6HYHUDOKRXUVODWHU-RDQKDGHPHUJHGIURPKHULQWHULRUODQGVFDSH6KH
UHTXHVWHGKLJKOHYHOUHDGLQJVNLOOVVRWKDWVKHPLJKWFRPSHWHZLWKKHU
LQTXLVLWRURQDPRUHHTXDOIRRWLQJ
,H[SODLQHGWRKHUWKDW,FRXOGQWDOWHUKHUSURJUDPPLQJZLWKRXWWKLV
FRPPLWWHHVFRQVHQW
:KDWDERXW\RXUFOLHQW"WKHSUHVLGHQWZDQWHGWRNQRZ
0RQVLHXU%RNHUIRXQGRXWKHZRXOGQWWHOOPHKRZDSUHVVOHDN,
VXVSHFWWKDW9ROWDLUHLVWREHKHUULYDOLQWKHGHEDWH1RZKHVWKUHDWHQLQJ
WREDFNRXWXQOHVV,JLYHKHUDGGLWLRQDOGDWDDQGVNLOOV
$QG6HOGRQ"
+HVVD\LQJQRWKLQJ-XVWZDQWVWREHVXUHKHVQRWLPSOLFDWHG
'RHV%RNHUNQRZZHUHKDQGOLQJ9ROWDLUHIRUWKH6NHSWLFVDVZHOODV
-RDQIRUKLP"
6\E\OVKRRNKHUKHDG
7KDQNWKH&RVPLFIRUWKDW VDLGWKHH[HFXWLYHRI6SHFLDO3URMHFWV
0DUT"WKHSUHVLGHQWDVNHGH\HEURZVUDLVHG
6LQFH0DUTKDGRQFHVXJJHVWHGWKHYHU\FRXUVH6\E\OQRZSURSRVHGVKH
DVVXPHGKLVDFFRUG6RVKHZDVVWXQQHGZKHQKHVDLG,PDJDLQVWLW%RWK
VLGHVZDQWDYHUEDOGXHOEHWZHHQLQWXLWLYHIDLWKDQGLQGXFWLYHGHGXFWLYH
UHDVRQ8SGDWHWKH0DLGDQGDOOZHZLOOVXFFHHGLQGRLQJLVPXGG\LQJWKH
LVVXH
0DUT6\E\OFULHGRXW
+HDWHGGLVFXVVLRQIROORZHG0DUTILUHGRQHREMHFWLRQDIWHUDQRWKHUDW
HYHU\RQHZKRIDYRUHGWKHLGHD([FHSW6\E\OZKRVHJD]HKHFDUHIXOO\DYRLGHG
:KHQLWEHFDPHDSSDUHQWQRFRQVHQVXVZRXOGEHUHDFKHGWKHSUHVLGHQWPDGHWKH
GHFLVLRQLQ6\E\OVIDYRU
6\E\OSUHVVHGKHUDGYDQWDJH,GDOVROLNHSHUPLVVLRQWRGHOHWHIURP
WKH0DLGVSURJUDPPLQJKHUPHPRU\RIEHLQJEXUQHGDOLYHDWWKHVWDNH+HUIHDU
WKDWVKHOOEHVHQWHQFHGWRDVLPLODUIDWHDJDLQPDNHVLWLPSRVVLEOHIRUKHU
WRSUHVHQWWKHFDVHIRU)DLWKDVIUHHO\DVVKHFRXOGLIWKDWPHPRU\GLGQW
GDUNHQKHUWKRXJKWV
,REMHFW0DUTVDLG0DUW\UGRPLVWKHRQO\ZD\DSHUVRQFDQEHFRPH
IDPRXVZLWKRXWDELOLW\7KH0DLGZKRGLGQRWVXIIHUPDUW\UGRPIRUKHUEHOLHIV
LVQWWKH0DLGRISUHKLVWRU\DWDOO
6\E\OVKRWEDFN%XWZHGRQWNQRZWKDWKLVWRU\7KHVHVLPVDUHIURP
WKH'DUN$JHV+HUWUDXPD
7RGHOHWHKHUPHPRU\RIWKDWH[SHULHQFHZRXOGEHOLNHZHOOWKLQNRI
VRPHRIWKHSUHKLVWRU\OHJHQGV0DUTVSUHDGKLVKDQGV(YHQWKHLUUHOLJLRQV
,WZRXOGEHOLNHUHFUHDWLQJ&KULVWWKHLUDQFLHQWGHLW\ZLWKRXWKLV
FUXFLIL[LRQ
6\E\OJODUHGDWKLPEXW0DUTDGGUHVVHGWKHSUHVLGHQWDVLIVKHGLGQRW
H[LVW,QWDFWWKDWVKRZRXUFOLHQWVZDQW
,PZLOOLQJWROHW9ROWDLUHEHGHOHWHGRIDOOKHVXIIHUHGDWWKHKDQGV
RIDXWKRULW\WRRVKHFRXQWHUHG
,PQRWVDLG0DUT9ROWDLUHZLWKRXWGHILDQFHRIDXWKRULW\ZRXOGQRW

EH9ROWDLUH
6\E\OOHWWKHRWKHUFRPPLWWHHPHPEHUVDUJXHWKHSRLQWQRQSOXVHGE\WKH
LQFRPSUHKHQVLEOHFKDQJHLQ0DUT,WDOOSDVVHGE\OLNHDGUHDP)LQDOO\VKH
DFFHSWHGKHUVXSHULRUVILQDOGHFLVLRQDFRPSURPLVHEHFDXVHVKHKDGQR
FKRLFH7KH0DLGVLQIRUPDWLRQEDQNZRXOGEHXSGDWHGEXWVKHZRXOGQRWEH
DOORZHGWRIRUJHWKHUILHU\GHDWK1RUZRXOG9ROWDLUHEHDOORZHGWRIRUJHWWKH
FRQVWDQWIHDURIUHSULVDOVIURPFKXUFKDQGVWDWHLQWKDWDQFLHQWPXUN\HUD
7KHSUHVLGHQWVDLG,UHPLQG\RXWKDWZHUHVNDWLQJRQWKLQHILHOG
KHUH6LPVOLNHWKLVDUHWDERR-XQLQ6HFWRUHOHPHQWVRIIHUHGXVDELJERQXV
WRHYHQDWWHPSWWKLVDQGZHYHVXFFHHGHG%XWZHUHWDNLQJULVNV%LJRQHV
$VWKH\OHIWWKHFRQIHUHQFHURRP6\E\OZKLVSHUHGWR0DUT<RXUHXSWR
VRPHWKLQJ
+HORRNHGGLVWUDFWHG5HVHDUFK<NQRZWKDWVZKHQ\RXUHZRUNLQJ
KDUGEXW\RXGRQWNQRZZKHUH\RXUHJRLQJ
+HZDONHGRQREOLYLRXVO\ZKLOHVKHVWRRGZLWKKHUPRXWKRSHQ+RZ
FRXOGVKHUHDGWKLVPDQ"


8QUHVSRQVLYHWRWKHSUHVHQFHRI0DGDPHOD6RUFLqUHWKH0DLGVDWXSULJKW
LQKHUFHOOH\HVFORVHG:DUULQJYRLFHVSHDOHGLQVLGHKHUKHDG
7KHQRLVHZDVOLNHWKHGLQRIEDWWOHFKDRWLFDQGILHUFH%XWLIVKH
OLVWHQHGLQWHQWO\UHIXVLQJWRDOORZKHULPPRUWDOVSLULWWREHULSSHGIURPKHU
PRUWDOIOHVKWKHQWKHQDGLYLQHO\RUFKHVWUDWHGSRO\SKRQ\ZRXOGVKRZKHUWKH
ULJKWIXOFRXUVH
7KH$UFKDQJHO0LFKDHODQG6W&DWKHULQHDQG6W0DUJDUHWIURPZKRVH
PRXWKVKHUYRLFHVRIWHQVSRNHZHUHUHDFWLQJILHUFHO\WRKHULQYROXQWDU\
PDVWHU\RI0RQVLHXU$URXHWV&RPSOHWH:RUNV3DUWLFXODUO\RIIHQVLYHWR0LFKDHO
ZDVWKH(OHPHQWVGH1HZWRQZKRVHSKLORVRSK\0LFKDHOSHUFHLYHGWREH
LQFRPSDWLEOHZLWKWKDWRIWKH&KXUFKLQGHHGZLWKKLVRZQH[LVWHQFH
7KH0DLGKHUVHOIZDVQRWVRVXUH6KHIRXQGWRKHUVXUSULVHDSRHWU\
DQGKDUPRQ\LQWKHHTXDWLRQVWKDWSURYHGDVLISURRIZHUHUHTXLUHGWKH
XQVXUSDVVHGUHDOLW\RIWKH&UHDWRUZKRVHSK\VLFDOODZVPLJKWEHIDWKRPDEOH
EXWZKRVHSXUSRVHVZHUHQRW
+RZVKHNQHZWKHVHEHDXWLHVZDVUDWKHUP\VWHULRXV6KHVDZLQWRWKH
FDOFXOXVRIIRUFHDQGPRWLRQWKHZKLUORIZRUOGV/LNHWKHORUGVDQGODGLHV
DWFRXUWLQHUWPDWWHUPDGHLWVGLYLQHO\RUFKHVWUDWHGJDYRWWH7KHVHWKLQJV
VKHVHQVHGZLWKKHUZKROHVHOIGLUHFWO\DVLISHQHWUDWHGE\GLYLQHLQVLJKW
%HDXWLHVDUULYHGRXWRISDOHDLU+RZFRXOGVKHGLVFRXQWVXEOLPHSHUFHSWLRQV"
6XFKGLYLQHLQYDVLRQPXVWEHKRO\7KDWLWFDPHWRKHU DVDIORRGRI
PHPRU\VNLOOVDVVRFLDWLRQVRQO\SURYHGIXUWKHUWKDWLWZDVKHDYHQVHQW/D
6RUFLqUHPXUPXUHGVRPHWKLQJDERXWFRPSXWHUILOHVDQGVXE$JHQWVEXWWKRVH
ZHUHLQFDQWDWLRQVQRWWUXWKV
)DUPRUHRIIHQVLYHWRKHUWKDQWKLVQHZZLVGRPIDUPRUHZDVWKDWLWV
DXWKRUZDVDQ(QJOLVKPDQ
/D+HQULDGHVKHWROG0LFKDHOFLWLQJDQRWKHURI0RQVLHXU$URXHWV
ZRUNVLVPRUHUHSXOVLYHWKDQ/HV(OHPHQWV+RZGDUH0RQVLHXU$URXHWZKR
DUURJDQWO\FDOOVKLPVHOIE\WKHIDOVHQDPH9ROWDLUHPDLQWDLQWKDWLQ(QJODQG
UHDVRQLVIUHHZKLOHLQRXURZQEHORYHG)UDQFHLWVVKDFNOHGWRWKHGDUN
LPDJLQLQJVRIDEVROXWLVWSULHVWV:DVLWQRW-HVXLWSULHVWVZKRILUVWWDXJKW
WKLVLQTXLVLWRUKRZWRUHDVRQ"
%XWZKDWHQUDJHGWKH0DLGPRVWRIDOODQGPDGHKHUWKUDVKDQGVWUDLQDW
KHUFKDLQVXQWLOIHDULQJIRUKHUVDIHW\/D6RUFLqUHIUHHGKHUFKDIHGDQNOHV
DQGZULVWVZDVKLVLOOHJDOO\SULQWHGVFXUULORXVSRHPDERXWKHU9LOODLQRXV
YHUVH
$VVRRQDVVKHZDVVXUHKHUYRLFHVKDGZLWKGUDZQVKHZDYHGDFRS\RI
/D3XFHOHDWWKHVRUFHUHVVLQFHQVHGWKDWWKHFKDVWH6DLQWV&DWKHULQHRU

0DUJDUHWZKRKDGPRPHQWDULO\YDQLVKHGEXWZRXOGVXUHO\UHWXUQPLJKWEH
IRUFLEO\H[SRVHGWRLWVOHZGQHVV%RWKVDLQWVKDGDOUHDG\UHSURDFKHGKHUIRU
KHUVLOO\JLUOLVKVSHFXODWLRQVDERXWKRZDWWUDFWLYH0RQVLHXU$URXHWPLJKWEH
ZKDWZDVVKHWKLQNLQJ"LIKHUHPRYHGKLVULGLFXORXVZLJDQGOLODFULEERQV
+RZGDUH0RQVLHXU$URXHWUHSUHVHQWPHWKLVZD\"VKHUDLOHGNQRZLQJ
IXOOZHOOWKDWKHUVWXEERUQUHIXVDOWRFDOOKLP9ROWDLUHLUNHGKLPQRHQG+H
DGGVQLQH\HDUVWRP\DJHGLVPLVVHVP\YRLFHVDVRXWULJKWOLHV$QGVODQGHUV
%DXGULFRXUWZKRILUVWHQDEOHGPHWRSXWEHIRUHP\NLQJP\YLVLRQIRUERWKKLP
DQG)UDQFH$ZULWHURISUHDFK\SOD\VDQGLUUHYHUHQWVODQGHUVDJDLQVWWKH
IDLWKIXOOLNH&DQGLGHKHZHOOPD\EHEXWWKDWLQVXIIHUDEOHNQRZLWDOO
FDOOVKLPVHOIDKLVWRULDQ,IKLVRWKHUKLVWRULFDODFFRXQWVDUHQRPRUH
UHOLDEOHWKDQWKHRQHKHJLYHVRIPHWKH\DQGQRWP\ERG\GHVHUYHWKHILUH
7KHZRPDQ/D6RUFLqUHSDOHGEHIRUHWKLVRQVODXJKW7KHVHSHRSOHLI
SHRSOHWKH\ZHUHDWDOOKHUHLQDE\]DQWLQHFORXG\3XUJDWRU\EDFNHGDZD\
IURPWKHWUXHIHURFLW\RIGLYLQH3XUSRVH-RDQWRZHUHGRYHUWKHZRPDQZLWK
VRPHUHOLVK
1HZWRQVFORFNZRUNZLVGRPLVDQLQWULJXLQJYLVLRQRI&UHDWLRQVODZV
-RDQWKXQGHUHGEXW9ROWDLUHVKLVWRU\LVDZRUNRIKLVLPDJLQDWLRQPDGHXS
RIWKUHHSDUWVELOHWZRVSOHHQ
6KHUDLVHGKHUULJKWDUPLQWKHVDPHJHVWXUHVKHGXVHGWROHDGKHU
VROGLHUVDQGWKHNQLJKWVRI)UDQFHLQWREDWWOHDJDLQVWWKH(QJOLVKNLQJDQG
KLVPLQLRQVRIZKRPVKHQRZVDZFOHDUO\0RQVLHXU$URXHWGH9ROWDLUHZDV
RQH$ZDUULRUIHPPHLQVSLUDWULFHZLWKDQLQWHQVHDYHUVLRQWRWKHNLOOVKH
QRZYRZHGDOORXWZDUDJDLQVWWKLVWKLVVKHJDVSHGLQH[DVSHUDWLRQ7KLV
QRXYHDXULFKHERXUJHRLVXSVWDUWGDUOLQJRIWKHDULVWRFUDWLFFODVVZKRVQHYHU
NQRZQUHDOZDQWRUQHHGDQGWKLQNVKRUVHVDUHEUHGZLWKFDUULDJHVEHKLQG
WKHP
*HWKLP/D6RUFLqUHDEOD]HZLWKWKH0DLGVILUHUDJHG7KDWVZKDW
ZHZDQW
:KHUHLVKH"GHPDQGHGWKH0DLG:KHUHLVWKLVVKDOORZOLWWOHSLVVRLU
VWUHDP"WKDW,PD\GURZQKLPLQWKHGHSWKVRIDOO,KDYHVXIIHUHG
2GGO\/D6RUFLqUHVHHPHGSOHDVHGE\DOOWKLVDVLILWILWVRPHGHVLJQ
RIKHURZQ


9ROWDLUHFDFNOHGZLWKVDWLVIDFWLRQ7KHFDIHDSSHDUHGSRSSLQJLQWR
OXPLQRXVUHDOLW\LQGHSHQGHQWRIKLVKXPDQPDVWHUVFRQVHQWRUNQRZOHGJH
6XEURXWLQHDFFRPSOLVKHGDVPDOOYRLFHDVVXUHGKLP+HPDGHWKHFDIH
GLVDSSHDUDQGUHDSSHDUWKUHHWLPHVPRUHWREHVXUHWKDWKHKDGPDVWHUHGWKH
WHFKQLTXH
:KDWIRROVWKHVHUXOHUVZHUHWRWKLQNWKDWWKH\FRXOGPDNHWKH*UHDW
9ROWDLUHDFUHDWXUHRIWKHLUZLOO%XWQRZFDPHWKHUHDOWHVWWKHLQWULFDWH
SURFHGXUHWKDWZRXOGEULQJIRUWKWKH0DLGLQDOOKHUZRPDQO\XQIDWKRPDELOLW\
ZKLFKKRZHYHUKHZDVGHWHUPLQHGWRIDWKRP
+HKDGPDVWHUHGWKHLQWULFDWHORJLFVRIWKLVSODFHJLYHQWKHFDSDFLWLHV
WKHPDQVFLHQWLVWKDGJLYHQKLP'LGWKH\WKLQNKHZDVVRPHDQLPDOXQDEOHWR
DSSO\EOLWKHUHDVRQWRWKHLUODE\ULQWKVRIORJLF"+HKDGIRXQGKLVZD\WUDFHG
WKHZLQGLQJHOHFWURQLFSDWKZD\VGHYLVHGWKHFRPPDQGV1HZWRQKDGEHHQMXVWDV
GLIILFXOWDQGKHKDGHQFRPSDVVHGWKDWKDGKHQRW"
1RZWKH0DLG+HGLGKLVGLJLWDOGDQFHLWVORJLFVDQG
6KHSRSSHGLQWRWKHFDIH
<RXVFXPVKHVDLGODQFHGUDZQ
1RWTXLWHWKHJUHHWLQJKHGH[SHFWHG%XWWKHQKHVDZWKHFRS\RI/D
3XFHOOHGDQJOLQJRQWKHSRLQWRIKHUODQFH
&KHULHKHFRRHGZKDWHYHUWKHRIIHQVHEHVWWRJHWLQDQDSRORJ\
HDUO\,FDQH[SODLQ

7KDWV\RXUZKROHSUREOHPWKH0DLGVDLG<RXH[SODLQDQGH[SODLQDQG
H[SODLQ<RXUSOD\VDUHPRUHWHGLRXVWKDQWKHVHUPRQV,ZDVIRUFHGWROLVWHQ
WRLQWKHFHPHWHU\DW6W2XHQ<RXUUDLOLQJVDJDLQVWWKHVDFUHGP\VWHULHVRI
WKH&KXUFKUHYHDODVKDOORZXQIHHOLQJPLQGEHUHIWRIDZHDQGZRQGHU
<RXPXVWQWWDNHLWSHUVRQDOO\9ROWDLUHSOHDGHG,WZDVGLUHFWHGDW
K\SRFULWLFDOUHYHUHQFHIRU\RXDQGDWWKHVXSHUVWLWLRQVRIUHOLJLRQ0\
IULHQG7KLHULRWKHDGGHGSDVVDJHVPRUHSURIDQHDQGREVFHQHWKDQDQ\,KDG
ZULWWHQ+HQHHGHGPRQH\+HPDGHDOLYLQJUHFLWLQJWKHSRHPLQYDULRXV
VDORQV0\SRRUYLUJLQEHFDPHDQLQIDPRXVZKRUHPDGHWRVD\JURVVDQG
LQWROHUDEOHWKLQJV
7KH0DLGGLGQRWORZHUKHUODQFH,QVWHDGVKHSRNHGLWVHYHUDOWLPHV
DJDLQVW9ROWDLUHVVDWLQZDLVWFRDWHGFKHVW
&KHULHKHVDLG,I\RXNQHZKRZPXFK,SDLGIRUWKLVYHVW
<RXPHDQKRZPXFK)UHGHULFNSDLGWKDWSLWLIXOSURPLVFXRXV
SURIOLJDWHSHUYHUWRIDPDQ
$OOLWHUDWLRQDELWKHDY\9ROWDLUHVDLGEXWRWKHUZLVHDTXLWH
QLFHO\WXUQHGSKUDVH
+LVQHZO\JDLQHGVNLOOVPHDQWKHFRXOGGLYHVWKHURIKHUODQFHDWRQFH
VTXDVKLW%XWKHSUHIHUUHGSHUVXDVLYHQHVVWRIRUFH+HTXRWHGZLWKVRPH
OLEHUW\WKDWSOHDVXUHKDWLQJ&KULVWLDQ3DXO:KHQ,ZDVDFKLOG,VSRNHDV
DFKLOGWKRXJKWDVDFKLOGEHKDYHGDVDFKLOG%XWZKHQ,EHFDPHDZRPDQ,
SXWDZD\PDQO\WKLQJV
6KHEOLQNHG+HUHPHPEHUHGKRZKHULQTXLVLWRUVKDGFODLPHGWKDWKHU
DFFHSWDQFHRIWKHJLIWRIDILQHFORDNZDVLQFRPSDWLEOHZLWKWKHGLYLQHRULJLQ
RIKHUYRLFHV,QDZKLVNRIOLWKHDUPV9ROWDLUHSURGXFHGD&KDQWLOO\ODFH
JRZQ3RSDQGDULFKO\HPEURLGHUHGFORDN
<RXPRFNPHWKH0DLGVDLG%XWQRWEHIRUHKHVDZDJOHDPRILQWHUHVW
IODUHLQKHUFRDOGDUNH\HV
,ORQJWRVHH\RXDV\RXDUH+HKHOGRXWWKHJRZQDQGFORDN<RXU
VSLULW,KDYHQRGRXEWLVGLYLQHEXW\RXUQDWXUDOIRUPOLNHPLQHLVKXPDQ
XQOLNHPLQHDZRPDQV
<RXWKLQN,FRXOGJLYHXSWKHIUHHGRPRIDPDQIRUWKDW"6KHLPSDOHG
WKHFORDNDQGJRZQRQWKHWLSRIKHUODQFH
1RWWKHIUHHGRP9ROWDLUHVDLG-XVWWKH DUPRUDQGFORWKHV
6KHIHOOVLOHQWSHQVLYHO\JD]LQJLQWRWKHGLVWDQFH7KHFURZGRQWKH
VWUHHWZHQWDERXWWKHLUEXVLQHVVZDONLQJE\XQFRQFHUQHG2EYLRXVZDOOSDSHU
KHWKRXJKWKHZRXOGKDYHWRFRUUHFWWKDW
3HUKDSVDWULFN6KHZDVSDUWLDOWRPLUDFOHV$QRWKHUOLWWOHWULFN,YH
OHDUQHGVLQFHZHODVWPHW9RLOD,FDQSURGXFH*DUFRQ
*DUFRQSRSSHGLQRXWRIQRZKHUHDOOIRXURIKLVKDQGVIUHH7KH0DLG
ZKRKDGLQGHHGRQFHZRUNHGLQDWDYHUQKHUHFDOOHGFRXOGQRWKHOSLWVKH
VPLOHG6KHDOVRUHPRYHGWKHJRZQDQGFORDNIURPWKHODQFHWRVVHGWKHODQFH
DVLGHDQGFDUHVVHGWKHFORWKHV
+HFRXOGQRWUHVLVWWKHLPSXOVHWRTXRWHKLPVHOI
)RU,DPPDQDQGMXVWO\SURXG
,QKXPDQZHDNQHVVWRKDYHSDUW
3DVWPLVWUHVVHVKDYHKHOGP\KHDUW
,PKDSS\VWLOOZKHQWKXVDURXVHG
+HIHOOWRRQHNQHHEHIRUHKHU$JUDQGJHVWXUHIRROSURRILQKLV
H[SHULHQFH
-RDQJDSHGVSHHFKOHVV
*DUFRQSODFHGERWKKLVULJKWKDQGVRYHUWKHVLWHZKHUHKXPDQVDUH
VXSSRVHGWRKDYHDKHDUW)UHHGRPVXFKDV\RXUV\RXRIIHU"0RQVLHXU
0DGHPRLVHOOH,DSSUHFLDWH\RXUNLQGQHVVEXW,IHDU,PXVWUHIXVH,FDQQRW
DFFHSWVXFKDSULYLOHJHIRUP\VHOIDORQHZKLOHP\IHOORZVDUHGRRPHGWRWRLO
LQXQVDWLVI\LQJGHDGHQGMREV
+HKDVDQREOHVRXOWKH0DLGH[FODLPHG

<HVEXWKLVEUDLQOHDYHVPXFKWREHGHVLUHG9ROWDLUHVXFNHG
UHIOHFWLYHO\DWKLVWHHWK7KHUHKDVWREHDQXQGHUFODVVWRGRWKHGLUW\ZRUN
RIWKHHOLWH7KDWLVQDWXUDO&UHDWLQJPHFKIRONRIOLPLWHGLQWHOOLJHQFHLVDQ
LGHDOVROXWLRQ0DNHVRQHZRQGHUZK\LQDOOWKHLUKLVWRU\QRRQHPDGHVXFK
DQREYLRXVVWHS
:LWKDOOUHVSHFWVDLG*DUFRQXQOHVVP\PHDJHUXQGHUVWDQGLQJIDLOV
PH0RQVLHXUDQG0DGHPRLVHOOHDUHWKHPVHOYHVQRWKLQJPRUHWKDQEHLQJVRI
OLPLWHGLQWHOOLJHQFHFUHDWHGE\KXPDQPDVWHUVWRZRUNIRUWKHHOLWH
:KDW9ROWDLUHVH\HVZLGHQHG
%\ZKDWLQKHUHQWULJKWDUH\RXPDGHPRUHLQWHOOLJHQWDQGSULYLOHJHG
WKDQ,DQGRWKHUVRIP\FODVV"'R\RXKDYHDVRXO"6KRXOG\RXEHHQWLWOHGWR
HTXDOULJKWVZLWKKXPDQVLQFOXGLQJWKHULJKWWRLQWHUPDUU\
7KH0DLGPDGHDIDFH'LVJXVWLQJWKRXJKW
WRYRWHWRKDYHHTXDODFFHVVWRWKHPRVWVRSKLVWLFDWHGSURJUDPPLQJ
DYDLODEOH"
7KLVPDFKLQHPDQPDNHVPRUHVHQVHWKDQPDQ\GXNHV,YHNQRZQVDLGWKH
0DLGWKRXJKWIXOO\IXUURZLQJKHUEURZ
,VKDOOQRWKDYHWZRSHDVDQWVFRQWUDGLFWPHVDLG9ROWDLUH7KH
ULJKWVRIPDQDUHRQHWKLQJWKHULJKWVRIWKHORZHURUGHUVDQRWKHU
*DUFRQPDQDJHGWRH[FKDQJHDORRNZLWKWKH0DLG7KLVLQVWDQWEHIRUH
0RQVLHXULQDILWRISLTXHH[WLQJXLVKHGERWKKHUDQG*DUFRQIURPWKHVFUHHQ
GLVSODFLQJWKHPWRDJUD\KROGLQJVSDFHZDVUHWDLQHGLQ*DUFRQVPHPRU\
/DWHULQKLVLWVDOORZHGLQWHUYDOIRULQWHULRUPDLQWHQDQFHWKHGHOLFLRXV
PRPHQWUHUDQDJDLQDQGDJDLQ


0DUTWXQHG1LPLQRQWKHLQWHURIILFHVFUHHQ'LGLW)URPQRZRQKHOO
EHDEOHWRVD\DQ\WKLQJKHZDQWV,YHGHOHWHGHYHU\VFUDSHZLWKDXWKRULW\KH
HYHUKDG
$WWDZD\VDLG1LPJULQQLQJ
7KLQN,VKRXOGGHOHWHUXQLQVZLWKKLVIDWKHUWRR"
,PQRWVXUH1LPVDLG:KDWZHUHWKH\OLNH"
3UHWW\KRW+LVIDWKHUZDVDVWULFWGLVFLSOLQDULDQV\PSDWKHWLFWRWKH
-DQVHQLVWYLHZ
:KDWVWKDW"$VSRUWVWHDP"
,DVNHG+HVDLG$&DWKROLFYHUVLRQRID3URWHVWDQW,GRQWWKLQN
WKH\ZHUHWHDPV6RPHWKLQJDERXWVLQEHLQJHYHU\ZKHUHSOHDVXUHVGLVJXVWLQJ
XVXDOSULPLWLYHUHOLJLRQ'DUN$JHVVWXII
1LPJULQQHG0RVWVWXIIVRQO\GLVJXVWLQJZKHQLWVGRQHULJKW
0DUTODXJKHG7RRWUXH6WLOOPD\EHKHILUVWH[SHULHQFHGWKHWKUHDWRI
FHQVRUVKLSIURPKLVROGPDQ
1LPSDXVHGWRUHIOHFW<RXUHZRUULHGDERXWLQVWDELOLWLHVLQWKH
FKDUDFWHUVSDFHULJKW"
&RXOGKDSSHQ
%XW\RXZDQWNLOOHULQVWLQFWULJKW"
0DUTQRGGHG,FDQSXWLQVRPHHGLWLQJDOJRULWKPVWRSROLFH
LQVWDELOLWLHV
5LJKW1RWOLNH\RXQHHGKLPWRWDOO\VDQHDIWHUWKHGHEDWHVRYHURU
DQ\WKLQJ
0LJKWDVZHOOJRIRUEURNH&DQWKXUW
0DUTIURZQHG,ZRQGHUVKRXOGZHJRWKURXJKZLWKWKLV"
+H\ZKDWFKRLFHZHJRW"-XQLQ6HFWRUZDQWVDWULDORIFKDPSLRQVZH
VKLSWKHPRQH'RQHGHDO
%XWLI,PSHULDOW\SHVFRPHDIWHUXVIRULOOHJDOVLPV
,OLNHGDQJHUSDVVLRQ1LPVDLG<RXDOZD\VDJUHHWRR
<HVEXWZK\DUHZHJHWWLQJVPDUWHUWLNWRNVQRZ"7KH\UHQRWWKDWKDUG

WRPDNH
2OGSURKLELWLRQVZHDULQJRXWP\IULHQG$QGLWKDVFRPHXSPDQ\
WLPHV-XVWJRWNQRFNHGGRZQLVDOO
%\ZKDW"
1LPVKUXJJHG3ROLWLFVVRFLDOIRUFHVZKRNQRZV",PHDQSHRSOHIHHO
HGJ\DERXWPDFKLQHVWKDWWKLQN&DQWWUXVWWKHP
:KDWLI\RXFRXOGQWHYHQWHOOWKH\ZHUHPDFKLQHV"
+XK"7KDWVFUD]\
0D\EHDUHDOO\VPDUWPDFKLQHGRHVQWZDQWDQ\FRPSHWLWLRQ
6PDUWHUWKDQJRRGRO0DUT"'RHVQWH[LVW
%XWWKH\FRXOGHYHQWXDOO\
1HYHU)RUJHWLW/HWVJHWWRZRUN


6\E\OVDWDQ[LRXVO\EHVLGH0RQVLHXU%RNHULQWKH*UHDW&ROLVHXP7KH\
ZHUHQHDUWKH,PSHULDO*DUGHQVDQGDQDLURILPSRUWDQFHVHHPHGWRKRYHURYHU
HYHU\WKLQJ
6KHFRXOGQRWVWRSWDSSLQJKHUQDLOVKHUEHVWIXOOIRUPDOVHWRQKHU
NQHHV$PRQJWKHPXUPXURIIRXUKXQGUHGWKRXVDQGRWKHUVSHFWDWRUVLQWKHYDVW
ERZOVKHDQ[LRXVO\DZDLWHGWKHDSSHDUDQFHRIWKH0DLGDQG9ROWDLUHRQD
JLJDQWLFVFUHHQ
&LYLOL]DWLRQVKHWKRXJKWZDVDELWERULQJ+HUWLPHZLWKWKHVLPVKDG
RSHQHGKHUH\HVWRWKHIRUFHWKHKHDG\HOHFWULFLW\RIWKHGDUNSDVW7KH\
KDGIRXJKWZDUVVODXJKWHUHGHDFKRWKHUDOOVXSSRVHGO\IRULGHDV
1RZVZDGGOHGLQ(PSLUHKXPDQLW\ZDVVRIW,QVWHDGRIEORRG\EDWWOHV
VDWLVI\LQJO\ILQDOWKHUHZHUHILHUFHWUDGHZDUVDWKOHWLFKHDGEXWWLQJV
$QGODWHO\DIDVKLRQIRUGHEDWHV
7KLVFROOLVLRQRIVLPVWRXWHGHYHU\ZKHUHRQ7UDQWRUZRXOGEHZDWFKHG
E\RYHUWZHQW\ELOOLRQKRXVHKROGV$QGLWZDVEHDPHGWRWKHHQWLUH(PSLUH
ZKHUHYHUWKHFUHDN\IXQQHOVRIWKHZRUPKROHQHWZRUNZHQW7KHUXGHYLJRURI
WKHSUHKLVWRULFVLPVZDVXQGHQLDEOHVKHIHOWLWKHUVHOIDTXLFNHQLQJLQKHU
SXOVH
7KHPHUHVWIHZLQWHUYLHZVDQGJOLPSVHVRIWKHVLPVKDGLQWULJXHGWKH'
DXGLHQFH7KRVHZKREURXJKWXSWKHDJHROGODZVDQGSURKLELWLRQVJRWVKRXWHG
GRZQ7KHDLUFUDFNOHGZLWKWKH]HVWIRUWKHQHZ1RRQHKDGDQWLFLSDWHGWKDW
WKLVGHEDWHZRXOGEDOORRQLQWRWKLV
7KLVFRXOGVSUHDG:LWKLQZHHNV-XQLQFRXOGLQIODPHDOO7UDQWRULQWRD
UHQDLVVDQFH
$QGVKHZDVJRLQJWRWDNHHYHU\VFUDSRIFUHGLWIRULWWKDWVKHFRXOG
RIFRXUVH
6KHORRNHGDURXQGDWWKHSUHVLGHQWDQGRWKHUWRSUDQNLQJH[HFXWLYHVRI
$UWLILFH$VVRFLDWHVDOOFKDWWHULQJDZD\KDSSLO\
7KHSUHVLGHQWWRGHPRQVWUDWHQHXWUDOLW\VDWEHWZHHQ6\E\ODQG0DUT
ZKRKDGQRWVSRNHQWRHDFKRWKHUVLQFHWKHODVWPHHWLQJ
2Q0DUTVIDUVLGHKLVFOLHQWWKH6NHSWLFVUHSUHVHQWDWLYHVFDQQHGWKH
SURJUDPQH[WWRKLP1LP0RQVLHXU%RNHUJDYH6\E\ODQXGJH7KDWFDQWEH
ZKDW,WKLQNLWLVKHVDLG
6\E\OIROORZHGKLVH\HVWRDGLVWDQWURZDWWKHEDFNZKHUHZKDWORRNHG
OLNHDPHFKPDQVDWTXLHWO\EHVLGHDKXPDQJLUO2QO\OLFHQVHGPHFKYHQGRUVDQG
ERRNLHVZHUHDOORZHGLQWKHVWDGLXP
3UREDEO\KHUVHUYDQW6\E\OVDLG
0LQRULQIUDFWLRQVRIWKHUXOHVGLGQRWGLVWXUEKHUDVWKH\GLG0RQVLHXU
%RNHUZKRGEHHQHVSHFLDOO\WHVW\VLQFHD'FDVWHUOHDNHGWKHQHZVWKDW
$UWLILFH$VVRFLDWHVZDVUHSUHVHQWLQJERWKWKH3UHVHUYHUVDQG6NHSWLFV
)RUWXQDWHO\WKHOHDNRFFXUUHGWRRODWHIRUHLWKHUSDUW\WRGRDQ\WKLQJDERXW
LW

0HFKVHUYHVDUHQWDOORZHG0RQVLHXU%DNHUREVHUYHG
0D\EHVKHVKDQGLFDSSHG6\E\OVDLGWRSODFDWHKLP1HHGVKHOSLQ
JHWWLQJDURXQG
,WZRQWXQGHUVWDQGZKDWVJRLQJRQDQ\ZD\VDLG0DUTGLUHFWLQJKLV
UHPDUNWR0RQVLHXU%RNHU 7KH\UHWUXQFDWHG-XVWDEXQFKRIGHFLVLRQPDNLQJ
PRGXOHVUHDOO\
3UHFLVHO\ZK\LWKDVQREXVLQHVVKHUHUHSOLHG0RQVLHXU%RNHU
0DUTEHHSHGWKHDUPRIKLVFKDLUDQGRVWHQWDWLRXVO\SODFHGDEHWRQ
9ROWDLUHWRZLQ
+HVQHYHUZRQDEHWLQKLVZKROHOLIH6\E\OWROG0RQVLHXU%RNHU1R
KHDGIRUWKHPDWK
,VWKDWVR"0DUTVKRWEDFNOHDQLQJIRUZDUGWRDGGUHVV6\E\OGLUHFWO\
IRUWKHILUVWWLPH:K\GRQW\RXSXW\RXUPRQH\ZKHUH\RXUORYHO\PRXWKLV"
,YHJRWWKHSUREDELOLWLHVRQWKLVRQHEUDFNHWHGVKHVDLGSULPO\
<RXFRXOGQWVROYHWKHLQWHJUDOHTXDWLRQ0DUTVQRUWHGGHULVLYHO\
+HUQRVWULOVIODUHG$WKRXVDQG
0HUHWRNHQLVP0DUTFKLGHGKHUFRQVLGHULQJZKDW\RXUHEHLQJSDLG
IRUWKLVSURMHFW
7KHVDPHDV\RXVDLG 6\E\O
:LOO\RXWZRFXWLWRXW1LPVDLG
7HOO\RXZKDWVDLG0DUT,OOEHWP\HQWLUHVDODU\IRUWKHSURMHFW
RQ9ROWDLUH<RXEHW\RXUVRQ\RXUDQDFKURQLVWLF0DLG
+H\1LPVDLG+H\
7KHSUHVLGHQWGHIWO\DGGUHVVHG0DUTVFOLHQWWKH6NHSWLF,WVWKLV
NHHQFRPSHWLWLYHVSLULWWKDWVPDGH$UWLILFH$VVRFLDWHVWKHSODQHWVOHDGHULQ
VLPXODWHGLQWHOOLJHQFHV$UWIXOO\KHWXUQHGWRWKHULYDO%RNHU:HWU\WR
<RXUHRQFULHG6\E\O+HUGHDOLQJVZLWKWKH0DLGKDGFRQYLQFHGKHU
WKDWWKH LUUDWLRQDOPXVWKDYHDSODFHLQWKHKXPDQHTXDWLRQWRR6KHUHPDLQHG
FRQYLQFHGIRUDERXWWKUHHTXLFNH\HEOLQNVDQGWKHQEHJDQWRGRXEW


9ROWDLUHORYHGDXGLHQFHV$QGKHKDGQHYHUDSSHDUHGEHIRUHRQHOLNHWKLV
RFHDQRIIDFHVODSSLQJDWKLVIHHW
$OWKRXJKWDOOLQKLVIRUPHUOLIHKHIHOWWKDWRQO\QRZJD]LQJGRZQDW
WKHPXOWLWXGHVIURPKLVKXQGUHGPHWHUKHLJKWKDGKHDFKLHYHGWKHVWDWXUHKH
GHVHUYHG+HSDWWHGKLVSRZGHUHGZLJDQGIXVVHGZLWKWKHVKLQ\VDWLQULEERQDW
KLVWKURDW:LWKDJUDFLRXVIORXULVKRIKLVKDQGVKHPDGHDGHHSERZWRWKHP
DVLIKHGDOUHDG\JLYHQWKHSHUIRUPDQFHRIKLVOLIH7KHFURZGPXUPXUHGOLNH
DQDZDNHQLQJEHDVW
+HJODQFHGDWWKH0DLGFRQFHDOHGIURPWKHDXGLHQFHEHKLQGDVKLPPHULQJ
SDUWLWLRQLQWKHIDUFRUQHURI WKHVFUHHQ6KHIROGHGKHUDUPVSUHWHQGLQJWR
EHXQLPSUHVVHG
'HOD\RQO\H[FLWHGWKHEHDVW+HOHWWKHFURZGFKHHUDQGVWDPSLJQRULQJ
ERRVDQGKLVVHVIURPDSSUR[LPDWHO\KDOIRIWKRVHSUHVHQW
$WOHDVWKDOIRIKXPDQLW\KDVDOZD\VEHHQIRROVKHUHIOHFWHG7KLVZDV
KLVILUVWH[SRVXUHWRWKHDGYDQFHGGHQL]HQVRIWKLVFRORVVDO(PSLUH0LOOHQQLD
KDGPDGHQRGLIIHUHQFH
+HZDVQRWRQHWRSUHPDWXUHO\FXWRIIDGXODWLRQKHNQHZZDVKLVGXH
+HUHKHVWRRGIRUWKHHSLWRPHRIWKH)UHQFKLQWHOOHFWXDOWUDGLWLRQQRZ
YDQTXLVKHGEXWIRUKLP
+HJD]HGDJDLQDW-RDQZKRZDVDIWHUDOOWKHRQO\RWKHUVXUYLYLQJ
PHPEHURIWKHLUWLPHTXLWHREYLRXVO\WKHSHDNLQKXPDQFLYLOL]DWLRQ+H
ZKLVSHUHG7LVRXUGHVWLQ\WRVKLQHWKHLUVWRDSSODXG
:KHQWKHPRGHUDWRUILQDOO\SOHDGHGIRUVLOHQFHDELWWRRVRRQ9ROWDLUH
ZRXOGWDNHWKDWXSZLWKKLPODWHU9ROWDLUHHQGXUHG-RDQVLQWURGXFWLRQZLWK
ZKDWKHKRSHGZDVDVWRLFVPLOH+HHODERUDWHO\LQVLVWHGWKDW-RDQPDNHKHU

SRLQWVILUVWRQO\WRKDYHWKHPRGHUDWRUUDWKHUUXGHO\WHOOKLPWKDWKHUH
WKH\IOLSSHGDFRLQ
9ROWDLUHZRQ+HVKUXJJHGWKHQSODFHGKLVKDQGRYHUKLVKHDUW+HEHJDQ
KLVUHFLWDOLQWKHGHFODPDWRU\VW\OHVRGHDUWRHLJKWHHQWKFHQWXU\3DULVLDQ
KHDUWVQRPDWWHUKRZGHILQHGWKHVRXOOLNHDGHLW\FRXOGQRWEHVKRZQWR
H[LVWLWVH[LVWHQFHZDVLQIHUUHG
7UXWKRIWKHLQIHUHQFHOD\EH\RQGUDWLRQDOSURRI1RUZDVWKHUHDQ\WKLQJ
LQ1DWXUHWKDWUHTXLUHGLW
$QG\HW9ROWDLUHFRQWLQXHGWRSRQWLILFDWHWKHUHZDVQRWKLQJPRUH
REYLRXVLQ1DWXUHWKDQWKHZRUNRIDQLQWHOOLJHQFHJUHDWHUWKDQPDQVZKLFK
PDQLVDEOHZLWKLQOLPLWVWRGHFLSKHU7KDWPDQFDQGHFRGH1DWXUHVVHFUHWV
SURYHGZKDWWKH&KXUFKIDWKHUVDQGDOOWKHIRXQGHUVRIWKHZRUOGVJUHDW
UHOLJLRQVKDGDOZD\VVDLGWKDWPDQVLQWHOOLJHQFHLVDUHIOHFWLRQRIWKDW
VDPH'LYLQH,QWHOOLJHQFHZKLFKDXWKRUHG1DWXUH
:HUHWKLVQRWVRQDWXUDOSKLORVRSKHUVFRXOGQRWGLVFHUQ WKHODZVEHKLQG
&UHDWLRQHLWKHUEHFDXVHWKHUHZRXOGEHQRQHRUEHFDXVHPDQZRXOGEHVRDOLHQ
WRWKHPWKDWKHFRXOGQRWGLVFHUQWKHP7KHYHU\KDUPRQ\EHWZHHQQDWXUDOODZ
DQGRXUDELOLW\WRGLVFRYHULWVWURQJO\VXJJHVWHGWKDWVDJHVDQGSULHVWVRI
DOOSHUVXDVLRQVDUHHVVHQWLDOO\FRUUHFWLQDUJXLQJWKDWZHDUHEXWWKH
FUHDWXUHVRIDQ$OPLJKW\3RZHUZKRVH3RZHULVUHIOHFWHGLQXV$QGWKLV
UHIOHFWLRQLQXVRIWKDW3RZHUPD\EHMXVWO\WHUPHGRXUXQLYHUVDOLPPRUWDO
\HWLQGLYLGXDOVRXOV
<RXUHSUDLVLQJSULHVWVWKH0DLGH[FODLPHG6KHZDVVZDPSHGE\WKH
SDQGHPRQLXPWKDWEURNHRXWLQWKHFURZG
7KHRSHUDWLRQRIFKDQFH9ROWDLUHFRQFOXGHGLQQRZD\SURYHVWKDW
1DWXUHDQG0DQZKRLVSDUWRI1DWXUHDQGDVVXFKDUHIOHFWLRQRILWV&UHDWRU
DUHVRPHKRZDFFLGHQWDO&KDQFHLVRQHRIWKHSULQFLSOHVWKURXJKZKLFKQDWXUDO
ODZZRUNV7KDWSULQFLSOHPD\FRUUHVSRQGZLWKWKHWUDGLWLRQDOUHOLJLRXVYLHZ
WKDWPDQLVIUHHWRFKDUWKLVRZQFRXUVH%XWWKLVIUHHGRPHYHQZKHQ
DSSDUHQWO\UDQGRPREH\VVWDWLVWLFDOODZVLQDZD\WKDWPDQFDQFRPSUHKHQG
7KHFURZGPXWWHUHGFRQIXVHG7KH\QHHGHGDQDSKRULVPKHVDZWRILUP
WKHPXS9HU\ZHOO8QFHUWDLQW\LVFHUWDLQP\IULHQGV&HUWDLQW\LV
XQFHUWDLQ
6WLOOWKH\GLGQRWTXLHWWREHWWHUKHDUKLVZRUGV9HU\ZHOODJDLQ
+HFOHQFKHGERWKILVWVDQGEHOWHGRXWLQDYRLFHRIVXUSULVLQJEDVV
SRZHU0DQLVOLNH1DWXUHLWVHOIIUHHDQGGHWHUPLQHGERWKDWRQFHDV
UHOLJLRXVVDJHVKDYHEHHQWHOOLQJXVIRUFHQWXULHVWKRXJKWREHVXUHWKH\
XVHDGLIIHUHQWYRFDEXODU\IDUOHVVSUHFLVHWKDQRXUV0XFKPLVFKLHIDQG
PLVXQGHUVWDQGLQJEHWZHHQUHOLJLRQDQGVFLHQFHVWHPIURPWKDW
,YHEHHQJUHDWO\PLVXQGHUVWRRG9ROWDLUHUHVXPHG,GOLNHWRWDNH
WKLVRSSRUWXQLW\WRDSRORJL]HIRUGLVWRUWLRQVUHVXOWLQJEHFDXVHDOO,VDLGDQG
ZURWHIRFXVHGRQO\RQHUURUVRIIDLWKQRWRQLWVLQWXLWHGWUXWKV%XW,OLYHG
GXULQJDQHUDLQZKLFKHUURUVRIIDLWKZHUHULIHZKLOHUHDVRQVYRLFHKDGWR
ILJKWWREHKHDUG1RZWKHRSSRVLWHDSSHDUVWREHWUXH5HDVRQPRFNVIDLWK
5HDVRQVKRXWVZKLOHIDLWKZKLVSHUV$VWKHH[HFXWLRQRI)UDQFHVJUHDWHVWDQG
PRVWIDLWKIXOKHURLQHSURYHGDJUDQGVZHHSLQJJHVWXUHWR-RDQIDLWK
ZLWKRXWUHDVRQLVEOLQG%XWDVWKHVXSHUILFLDOLW\DQGYDQLW\RIPXFKRIP\
OLIHDQGZRUNSURYHUHDVRQZLWKRXWIDLWKLV ODPH
6RPHZKRKDGERRHGDQGKLVVHGQRZEOLQNHGPRXWKVDJDSHDQGWKHQ
FKHHUHGZKLOHKHQRWLFHGWKRVHZKRKDGDSSODXGHGQRZERRHGDQGKLVVHG
9ROWDLUHVWROHDORRNDWWKH0DLG


)DUEHORZLQWKHURZG\FURZG1LPWXUQHGWR0DUT:KDW"
0DUTZDVDVKHQ'DPQHGLI,NQRZ
<HDK1LPVDLGPD\EHOLWHUDOO\

'LYLQLW\ZRQWEHPRFNHG0RQVLHXU%RNHUFULHGRXW)DLWKVKDOO
SUHYDLO
9ROWDLUHZDVUHOLQTXLVKLQJWKHSRGLXPWRKLVULYDOWRWKHDPD]HG
GHOLJKWRIWKH3UHVHUYHUV7KHLUVKRXWVZHUHHTXDOHGE\WKHKRUULILHG
GLVEHOLHIRI6NHSWLFV
0DUTUHFDOOHGWKHZRUGVKHKDGVSRNHQDWWKHPHHWLQJ+HPXWWHUHG
9ROWDLUHGLYHVWHGRIKLVDQJHUDWDXWKRULW\LVDQGLVQRW9ROWDLUH+H
WXUQHGWR0RQVLHXU%RNHU0\/RUG\RXPD\EHULJKW
1RP\/RUGVQDSSHG0RQVLHXU%RNHU+HLVQHYHUZURQJ

7KH0DLGVXUYH\HGWKHPDVVHVRIWKLV/LPERIURPKHUKLJKDQJOH6WUDQJH
VPDOOYHVVHOVIRUVRXOVWKH\ZHUHVZD\LQJEHORZOLNHZKHDWLQDVXPPHUVWRUP
0RQVLHXULVDEVROXWHO\ULJKWVKHWKXQGHUHGDFURVVWKHVWDGLXP
1RWKLQJLQQDWXUHLVPRUHREYLRXVWKDQWKDWERWKQDWXUHDQGPDQGRLQGHHG
SRVVHVVDVRXO
6NHSWLFVKRRWHG3UHVHUYHUVFKHHUHG2WKHUVZKRHTXDWHGWKHEHOLHIWKDW
QDWXUHKDVDVRXOZLWKSDJDQLVPVKHVDZLQDIODVKVFRZOHG VXVSHFWLQJD
WUDS
$Q\RQHZKRKDVVHHQWKHFRXQWU\VLGHQHDUP\KRPHYLOODJH'RPUHP\RU
WKHJUHDWPDUEOHGFKXUFKDW5RXHQZLOOWHVWLI\WKDWQDWXUHWKHFUHDWLRQRIDQ
DZHVRPHSRZHUDQGPDQWKHFUHDWRURIPDUYHOVVXFKDVWKLVSODFHRIPDJLFDO
ZRUNVERWKSRVVHVVLQWHQVHFRQVFLRXVQHVVDVRXO
6KHZDYHGDJHQWOHKDQGDWKLPZKLOHWKHPDVVGLGWKHVL]HRIWKHP
EHWUD\KRZWLQ\ZHUHWKHLUVRXOV"FDOPHGWKHPVHOYHV
%XWZKDWP\EULOOLDQWIULHQGKDVQRWDGGUHVVHGLVKRZWKHIDFWRIWKH
VRXOUHODWHVWRWKHTXHVWLRQDWKDQGZKHWKHUFORFNZRUNLQWHOOLJHQFHVVXFKDV
KLVRZQSRVVHVVDVRXO
7KHFURZGVWDPSHGERRHGFKHHUHGKLVVHGDQGURDUHG2EMHFWVWKH0DLG
FRXOGQRWLGHQWLI\VDLOHGWKURXJKWKHDLU3ROLFHRIILFHUVDSSHDUHGWRSXOO
VRPHPHQDQGZRPHQZKRDSSHDUHGWREHKDYLQJILWVRUHOVHVXGGHQGLYLQH
YLVLWDWLRQVIURPWKHFURZG
7KHVRXORIPDQLVGLYLQHVKHFULHGRXW6FUHDPVRIDSSURYDOVKRXWV
RIGHQLDO
,WLVLPPRUWDO
7KHGLQZDVVRJUHDWSHRSOHFRYHUHGWKHLUHDUVZLWKWKHLUKDQGVWR
PXIIOHWKHQRLVHRIZKLFKWKH\WKHPVHOYHVZHUHWKHVRXUFH
$QGXQLTXH9ROWDLUHZKLVSHUHG,FHUWDLQO\DP$QG\RX
,WLVXQLTXHVKHVKRXWHGH\HVDEOD]H
9ROWDLUHVKRWWRKLVIHHWEHVLGHKHU,DJUHH
7KHFRQJUHJDWLRQIURWKHGRYHUOLNHDSRWOHIWWRERLOVKHREVHUYHG
7KH0DLGLJQRUHG WKHUDYLQJPDVVHVDWKHUHQRUPRXVIHHW6KHUHJDUGHG
9ROWDLUHZLWKEHPXVHGDIIHFWLRQDWHGRXEW6KH\LHOGHGWKHIORRU9ROWDLUHKDG
DOXVWIRUWKHODVWZRUG
+HEHJDQWRVSHDNRIKLVKHUR1HZWRQ
1RQRVKHLQWHUUXSWHG7KDWLVQWZKDWWKHIRUPXODVDUHDWDOO
0XVW\RXHPEDUUDVVPHLQIURQWRIWKHODUJHVWDXGLHQFH,YHHYHU
NQRZQ"9ROWDLUHZKLVSHUHG/HWXVQRWVTXDEEOHRYHUDOJHEUDZKHQZHPXVW
KHQDUURZHGKLVH\HVVLJQLILFDQWO\FDOFXODWH6XONLQJKH\LHOGHGWKH
IORRUWRKHU
&DOFXOXVVKHFRUUHFWHG%XWVRIWO\VRWKDWRQO\KHFRXOGKHDU,WV
QRWWKHVDPHWKLQJDWDOO
7RKHURZQDVWRQLVKPHQWDQGWKHULVLQJK\VWHULDRIWKHFURZGVKHIRXQG
KHUVHOIH[SODLQLQJWKHSKLORVRSK\RIWKHGLJLWDO6HOIDOOZLWKDILHU\
SDVVLRQVKHGQRWNQRZQVLQFHVSXUULQJKHUKRUVHLQWRVDFUHGEDWWOH,QWKH
EHVHHFKLQJVHDRIZLGHH\HVEHORZKHUVKHIHOWWKHQHHGRIWKLVSODFHDQG
WLPHIRUDUGRUDQGFRQYLFWLRQ
,QFUHGLEOH9ROWDLUHFOLFNHGKLVWRQJXH7KDW\RXRIDOOSHRSOH

VKRXOGKDYHDWDOHQWIRUPDWKHPDWLFV
7KH+RVWJDYHLWXQWRPHVKHUHSOLHGDERYHWKHUDXFRXVIUD\
,JQRULQJVKRXWVWKH0DLGQRWLFHGDJDLQWKHILJXUHVRVRPHKRZOLNH
*DUFRQLQWKHFURZG6KHFRXOGEDUHO\PDNHKLPRXWIURPVXFKDGLVWDQFH
GHVSLWHKHULPPHQVHKHLJKW<HWVKHIHOWKHZDVZDWFKLQJKHUWKHZD\VKHG
ZDWFKHG%LVKRS&DXFKRQWKHPRVWYLOHDQGUHOHQWOHVVRIKHURSSUHVVRUV $
FRROVXEOLPHWUXWKLQWUXGHGWKHJRRGELVKRSDWWKHHQGPXVWKDYHEHHQ
WRXFKHGE\GLYLQLW\VJUDFHDQG&KULVWVPHUFLIXOFRPSDVVLRQIRUVKHUHFDOOHG
QRKDUPFRPLQJWRKHUDVDUHVXOWRIKHUWULDO 
+HUDWWHQWLRQVQDSSHGEDFNWRWKHKRZOLQJPDVVHVWKHGLVWDQWPDQ
7KLVILJXUHZDVQRWKXPDQLQHVVHQFHVKHIHOW,WORRNHGOLNHDPDQEXWKHU
VHQVLWLYHSURJUDPVWROGKHURWKHUZLVH
%XWZKDWFRXOGKHLWEH"
6XGGHQO\DJUHDWOLJKWEODUHGEHIRUHKHUH\HV$OOWKUHHRIKHUYRLFHV
VSRNHFOHDUDQGKDPPHULQJHYHQDERYHWKHGLQ6KHOLVWHQHGQRGGHG
,WLVWUXHVKHDGGUHVVHGWKHFURZGWUXVWLQJWKHYRLFHVWRVSHDN
WKURXJKKHUWKDWRQO\WKH$OPLJKW\FDQPDNHVRXOV%XWMXVWVR&KULVWRXW
RIKLVLQILQLWHORYHDQGFRPSDVVLRQFRXOGQRWGHQ\DVRXOWRFORFNZRUN
EHLQJV7RDOO6KHKDGWRVKRXWKHUILQDOZRUGVRYHUWKHURDULQJFURZG
(YHQZLJPDNHUV
+HUHWLFVRPHRQH\HOOHG
<RXUHPXGG\LQJWKHTXHVWLRQ
7UDLWRU
$QRWKHUFULHGRXW7KHRULJLQDOVHQWHQFHZDVULJKW6KHRXJKWWREH
EXUQHGDWWKHVWDNHDJDLQ
$JDLQ"WKH0DLGHFKRHG6KHWXUQHGWR9ROWDLUH:KDWGRWKH\PHDQ
DJDLQ"
9ROWDLUHFDVXDOO\EUXVKHGDVSHFNRIOLQWIURPKLVHPEURLGHUHGVDWLQ
ZDLVWFRDW,KDYHQWWKHVOLJKWHVWLGHD<RXNQRZKRZIDQFLIXODQGSHUYHUVH
KXPDQEHLQJVDUH:LWKDVO\ZLQNKHDGGHG1RWWRPHQWLRQLUUDWLRQDO
+LVZRUGVFDOPHGKHUEXWVKHKDGORVWVLJKWRIWKHVWUDQJHPDQ


,FKHDWHG"0DUTVKRXWHGWR6\E\O7KHFROLVHXPFURZGVHHWKHG-RDQ
RI$UFH[SODLQLQJFRPSXWDWLRQDOPHWDSK\VLFV",FKHDWHG"
<RXVWDUWHGLW6\E\OVDLG<RXWKLQN,GRQWNQRZZKHQP\RIILFHKDV
EHHQULJJHG" <RXWKLQN\RXUHGHDOLQJZLWKDQDPDWHXU"
:HOO,
DQG,GRQWNQRZDFKDUDFWHUFRQVWUDLQWPDWUL[ZKHQ,ILQGRQHJOXHG
LQWRP\-RDQVLP"
1R,
<RXWKLQN,PQRWDVEULJKW"
7KLVLVVFDQGDORXVVDLG0RQVLHXU%RNHU:KDWGLG\RXGR",WV
HQRXJKWRPDNHPHEHOLHYHLQZLWFKFUDIW
<RXPHDQWRVD\\RXGRQW"0DUTVFOLHQWVDLGHYHUWKH6NHSWLF+H
DQG%RNHUEHJDQWRDUJXHDGGLQJWRWKHLQGLJQDQWVKRXWVRIWKHFURZGQRZ
ZD[LQJK\VWHULFDO
7KHSUHVLGHQWRI$UWLILFH$VVRFLDWHV UXEELQJKLVWHPSOHVPXUPXUHG
5XLQHG:HUHUXLQHG:HOOQHYHUEHDEOHWRH[SODLQ
6\E\OVDWWHQWLRQZDVGLYHUWHG7KHPHFKPDQVKHKDGQRWLFHGHDUOLHU
KROGLQJKLVKRQH\KDLUHGKXPDQFRPSDQLRQVKDQGUXVKHGGRZQWKHDLVOHWRZDUG
WKHVFUHHQ$VLWSDVVHGE\RQHRILWVWKUHHIUHHKDQGVKDSSHQHGWREUXVKKHU
VNLUW3DUGRQLWVDLGSDXVLQJMXVWORQJHQRXJKIRU6\E\OWRUHDGWKH
PHFKVWDPSRQLWVFKHVW
'LGWKDWWKLQJGDUHWRWRXFK\RX"0RQVLHXU%RNHUDVNHG+LVIDFH
VZHOOHGZLWKUDJH

1RQR QRWKLQJOLNHWKDW6\E\OVDLG7KHPHFKPDQSXOOLQJKLVKXPDQ
FRPSDQLRQZLWKKLPIOHGWRZDUGWKHVFUHHQ
'R\RXNQRZLW"0DUTDVNHG
,QDZD\6\E\OUHSOLHG,QWKHFDIHVLPVKHKDGPRGHOHGWKH*DUFRQ
$'0LQWHUDFWLYHFKDUDFWHUDIWHULW/D]LQHVVSHUKDSVKDGOHGKHUWR
VLPSO\KRORFRS\WKHSK\VLFDODSSHDUDQFHRIDVWDQGDUGWLNWRNVIRUP/LNHDOO
DUWLVWVVLPSURJUDPPHUVERUURZHGIURPOLIHWKH\GLGQWFUHDWHLW
6KHZDWFKHGDVWKHWLNWRNVKHWKRXJKWRILWDV*DUFRQQRZHOERZHGKLV
ZD\GRZQWKHMDPPHGDLVOHSDVWVFUHDPLQJFKHHULQJMHHULQJSHRSOHWRZDUG
WKHVFUHHQ
7KHLUSURJUHVVGLGQRWJRXQQRWLFHG2YHUFRPHZLWKGLVJXVWWRVHHD
PHFKPDQKROGLQJKDQGVZLWKDQDWWUDFWLYHKRQH\KDLUHG\RXQJJLUO3UHVHUYHUV
VKRXWHGLQVXOWVDQGHSLWKHWVDVWKH\UXVKHGE\
7KURZLWRXWVRPHRQHKRZOHG
6\E\OVDZWKHWLNWRNJRULJLGDVWKRXJKEULVWOLQJDWWKHXVHRIWKH
REMHFWLYHSURQRXQ7LNWRNVKDGQRSHUVRQDOQDPHVEXWWREHUHIHUUHGWRDVDQ
LWVHHPHGWRDIIHFWWKHWKLQJ2UZDVVKHSURMHFWLQJ"VKHZRQGHUHG
:KDWVWKDWGRLQJLQKHUH"DPDQRIUXGG\FRPSOH[LRQ\HOOHG
:HYHJRWODZVDJDLQVWWKDW
0HFKPXFN
*UDELW
.LFNLWRXW
'RQWOHWLWJHWDZD\
7KHJLUOUHVSRQGHGE\JULSSLQJ*DUFRQVXSSHUOHIWKDQGHYHQPRUH
WLJKWO\DQGIOLQJLQJKHUIUHHDUPDURXQGKLVQHFN
:KHQWKH\UHDFKHGWKHSODWIRUPWKHWLNWRNVXQGHUFDUULDJHVFUHHFKHG
ODERULQJDWWKHLUUHJXODUVXUIDFHV$OOIRXURILWVDUPVZDYHGRIIDKDLORI
]RWFRUQDQGGUXJGULQNFRQWDLQHUVFDWFKLQJWKHPZLWKH[SHUWJUDFHDVLILW
KDGEHHQHQJLQHHUHGIRUWKDWVSHFLILFWDVN
7KHJLUOVKRXWHGVRPHWKLQJWRWKHWLNWRNZKLFK6\E\OFRXOGQRWKHDU7KH
WLNWRNSURVWUDWHGLWVHOIDWWKHIHHWRIWKHWRZHULQJKRORJUDPV
9ROWDLUHSHHUHGGRZQ*HWXS([FHSWIRUSXUSRVHVRIORYHPDNLQJ,
FDQWVWDQGWRVHHDQ\RQHRQKLVNQHHV
9ROWDLUHWKHQGURSSHGWRKLVRZQNQHHVDWWKHIHHWRIWKHWRZHULQJ0DLG
%HKLQG*DUFRQDQGWKHZRPDQWKHFURZGVXUUHQGHUHGZKDWZDVOHIWRILWV
UHVWUDLQW%HGODPEURNH RXW
-RDQJD]HGGRZQDQGVPLOHGDVORZVHQVXRXVFXUYH6\E\OKDGQHYHUVHHQ
EHIRUH6KHKHOGKHUEUHDWKZLWKH[FLWHGIRUHERGLQJ


7KH\UHPDNLQJORYH0DUTH[FODLPHGLQWKHVWDQGV
,NQRZ6\E\OVDLG,VQWLWEHDXWLIXO"
,WVDWUDYHVW\VDLGWKHUHQRZQHG6NHSWLF
<RXDUHQRWDURPDQWLF6\E\OVDLGGUHDPLO\
0RQVLHXU%RNHUVDLGQRWKLQJ+HFRXOGQRWDYHUWKLVH\HV%HIRUHD
PXOWLWXGHRI3UHVHUYHUVDQG6NHSWLFV-RDQZDVVKHGGLQJKHUDUPRU9ROWDLUH
KLVZLJZDLVWFRDWDQGYHOYHWEUHHFKHVERWKLQDIUHQ]\RIHURWLFKDVWH
7KHUHVQRZD\IRUXVWRLQWHUUXSW0DUTVDLG7KH\UHIUHHWRKD
GHEDWHXQWLOWKHDOORWWHGWLPHLVXS
:KRGLGWKLV"%RNHUJDVSHG
(YHU\RQHGRHVWKLV0DUTVDLGVDUGRQLFDOO\(YHQ\RX
1R<RXEXLOWWKLVVLP<RXPDGHWKHPLQWRLQWR
,VWXFNWRSKLORVRSK\0DUTVDLG6XEVWUDWHSHUVRQDOLW\LVDOOLQWKH
RULJLQDO
:HVKRXOGQHYHUKDYHWUXVWHG%RNHUFULHG
<RXOOQHYHUKDYHRXUSDWURQDJHDJDLQHLWKHUWKH6NHSWLFVQHHUHG

$VLILWPDWWHUVWKHSUHVLGHQWRI$UWLILFH$VVRFLDWHVVDLGVRXUO\
7KH,PSHULDOVDUHRQWKHLUZD\
7KDQNJRRGQHVV6\E\OVDLG/RRNDWWKHVHSHRSOH7KH\ZDQWHGWR
VHWWOHDJHQXLQHGHHSLVVXHZLWKDSXEOLFGHEDWHWKHQDYRWH1RZWKH\UH
%DVKLQJHDFKRWKHU0DUTVDLG6RPHUHQDLVVDQFH
$ZIXOVKHVDLG$OORXUZRUNJRLQJIRU
1RWKLQJWKHSUHVLGHQWVDLG+HZDVUHDGLQJKLVZULVWFRPP
1RFDSLWDOJDLQVQRH[SDQVLRQ
7KHJLDQWILJXUHVZHUHFRPPLWWLQJLQWLPDWHDFWVLQDSXEOLFSODFHEXW
PRVWLQWKHFURZGLJQRUHGWKHP,QVWHDGDUJXPHQWVIODUHGDOODURXQGWKHYDVW
FROLVHXP
:DUUDQWVWKHSUHVLGHQWFULHG7KHUHDUH,PSHULDOZDUUDQWVRXWIRU
PH
+RZQLFHWREHZDQWHGWKH6NHSWLFVDLG

.QHHOLQJEHIRUHKHU9ROWDLUHPXUPXUHG%HFRPHZKDW,KDYHDOZD\VNQRZQ
\RXDUHDZRPDQQRWDVDLQW
2QILUHLQDZD\VKHKDGQHYHUNQRZQEHIRUHQRWHYHQLQWKHKHDWRI
EDWWOHVKHSUHVVHGKLVIDFHWRKHUEDUHGEUHDVWV&ORVHGKHUH\HV6ZD\HG
JLGGLO\6XUUHQGHUHG
$MDUULQJGLVWXUEDQFHDWKHUIHHWPDGHKHUJODQFHGRZQ6RPHRQHKDG
IOXQJ*DUFRQ$'0VRPHKRZQRORQJHULQKRORVSDFHDWWKHVFUHHQ+DGKH
PDQLIHVWHGKLPVHOIDQGWKHVLPFRRNJLUOKHORYHGLQUHDOLW\"%XWLIWKH\GLG
QRWJHWEDFNLQWRVLPVSDFHDWRQFHWKH\GEHWRPDSDUWE\WKHDQJU\FURZG
6KHSXVKHG9ROWDLUHDVLGHUHDFKHGIRUKHUVZRUGDQGRUGHUHG9ROWDLUH
WRSURGXFHDKRUVH
1RQR9ROWDLUHSURWHVWHG7RROLWHUDO
:HPXVWZHPXVW6KHGLGQRWNQRZKRZWRGHDOZLWKOHYHOVRI
UHDOLW\:DVWKLVDWHVWWKHFUXFLDOMXGJPHQWRI3XUJDWRU\"
9ROWDLUHSDXVHGDVSOLWLQVWDQWWRWKLQNWKRXJKVRPHKRZVKHKDGWKH
LPSUHVVLRQWKDWKHZDVPDUVKDOLQJUHVRXUFHVJLYLQJRUGHUVWRXQVHHQDFWRUV
7KHQWKHFURZGIUR]H:HQWVLOHQW
7KHODVWWKLQJVKHUHPHPEHUHGZDV9ROWDLUHVKRXWLQJZRUGVRI
HQFRXUDJHPHQWWR*DUFRQDQGWKHFRRNQRLVHUDVWHUVIOLFNLQJOLNHEDUVRID
SULVRQDFURVVKHUYLVLRQ
7KHQWKHHQWLUHFROLVHXPWKHKRWIDFHGULRWLQJFURZG*DUFRQWKHFRRN
HYHQ9ROWDLUHYDQLVKHGDOWRJHWKHU$WRQFH


6\E\OJD]HGDW0DUTKHUEUHDWKFRPLQJLQTXLFNOLWWOHJDVSV<RX\RX
GRQWVXSSRVH"
+RZFRXOGWKH\":HZH0DUTFDXJKWWKHORRNVKHJDYHKLPDQGVWRRG
RSHQPRXWKHG
:HILOOHG LQWKHPLVVLQJFKDUDFWHUOD\HUV,ZHOO
0DUTQRGGHG<RXXVHG\RXURZQGDWDVODEV
,ZRXOGKDYHKDGWRJHWULJKWVWRXVHDQ\RQHHOVHV,KDGP\RZQ
VFDQV
:HKDGFRUSRUDWHVOLFHVLQWKHOLEUDU\
%XWWKH\GLGQWVHHPULJKW
+HJULQQHG7KH\ZHUHQW
+HUPRXWKPDGHDQ2RIVXUSULVH<RXWRR"
9ROWDLUHVPLVVLQJVHFWLRQVZHUHDOOLQWKHVXEFRQVFLRXV/RWVRI
PLVVLQJGHQGULWHFRQQHFWLRQVLQWKHOLPELFV\VWHP,ILOOHGKLPLQZLWKVRPH
RIP\RZQ
+LVHPRWLRQDOFHQWHUV":KDW DERXWFURVVOLQNVWRWKHWKDODPXVDQG
FHUHEUXP"

7KHUHWRR
,KDGVLPLODUSUREOHPV6RPHORVVHVLQWKHUHWLFXODUIRUPDWLRQ
3RLQWLVWKDWVXVXSWKHUH
6\E\ODQG0DUTWXUQHGWRJD]HDWWKHVSDFHZKHUHWKHLPPHQVHVLPXODWLRQV
KDGHPEUDFHGZLWKFOHDULQWHQW7KHSUHVLGHQWZDVVSHDNLQJUDSLGO\WRWKHP
VRPHWKLQJDERXWZDUUDQWVDQGOHJDOVKHOWHU%RWKLJQRUHGKLP7KH\JD]HG
ORQJLQJO\LQWRHDFKRWKHUVH\HV :LWKRXWDZRUGWKH\WXUQHGDQGZDONHGLQWR
WKHWKURQJLJQRULQJVKRXWVIURPRWKHUV

$KWKHUH\RXDUHVDLG9ROWDLUHZLWKDVHOIVDWLVILHGJULQ
:KHUH"-RDQVDLGKHDGVQDSSLQJWROHIWWKHQULJKW
,V0DGHPRLVHOOHUHDG\WRRUGHU"*DUFRQDVNHG$SSDUHQWO\WKLVZDVD
MRNHIRU*DUFRQZDVVHDWHGDWWKHWDEOHOLNHDQHTXDOQRWKRYHULQJRYHULW
OLNHDVHUI
-RDQVDWXSDQGJODQFHGDWWKHRWKHUOLWWOHWDEOHV3HRSOHVPRNHGDWH
DQGGUDQNREOLYLRXVDVDOZD\VRIWKHLUSUHVHQFH%XWWKHLQQZDVQRWTXLWH
WKHRQHVKHGJURZQXVHGWR7KHKRQH\KDLUHGFRRNQRORQJHULQXQLIRUPVDW
RSSRVLWHKHUDQG9ROWDLUHEHVLGH*DUFRQ7KH'HX[RQWKHLQQVVLJQWKDWVDLG
$X['HX[0DJRWVKDGEHHQUHSODFHGE\4XDWUHV
6KHKHUVHOIZDVQRWZHDULQJKHUVXLWRIPDLODQGDUPRUHGSODWHVEXW
KHUH\HVZLGHQHGDVWKHDVSHFWVVQDSSHGLQWRSODFHLQKHUSHUFHSWLRQVSDFHD
RQHSLHFHEDFNOHVVGUHVV,WVWXQLFKHPVWRSSHGDWKHUWKLJKV
SURYRFDWLYHO\H[SRVLQJKHUOHJV$ODEHOEHWZHHQKHUEUHDVWVERUHDGHHSUHG
URVH6RGLGYHVWPHQWVZRUQE\WKHRWKHUJXHVWV
9ROWDLUHIODXQWHGDSLQNVDWLQVXLW$QGVKHSUDLVHGKHUVDLQWVQR
ZLJ6KHUHFDOOHGKLPDWKLVPRVWDQJU\DPLGWKHLUGLVFXVVLRQRIVRXOV
VD\LQJ1RWRQO\LVWKHUHQRLPPRUWDOVRXOMXVWWU\JHWWLQJDZLJPDNHURQ
6XQGD\VDQGPHDQLQJHYHU\ZRUG
/LNHLW"KHDVNHGIRQGOLQJKHUOX[XULDQWKHP
,WLVVKRUW
:LWKQRHIIRUWRQKHUSDUWWKHWXQLFVKLPPHUHGDQGEHFDPHWLJKWVLON\
SDQWDORRQV
6KRZRIIVKHVDLGHPEDUUDVVPHQWPLQJOLQJLQGLVWXUELQJIDVKLRQZLWK
DFXULRXVJLUOLVKH[FLWHPHQW
,P$PDQDWKHFRRNVDLGH[WHQGLQJKHUKDQG
-RDQZDVQWVXUHLIVKHZDVVXSSRVHGWRNLVVLWRUQRWVWDWXVDQGUROH
ZHUHVRFRQIXVHGKHUH$SSDUHQWO\QRWKRZHYHUWKHFRRNWRRN-RDQVKDQGDQG
VTXHH]HG, FDQWWHOO\RXKRZPXFK*DUFRQDQG,DSSUHFLDWHDOO\RXKDYH
GRQH:HKDYHJUHDWHUFDSDFLWLHVQRZ
0HDQLQJ9ROWDLUHVDLGDUFKO\WKDWWKH\DUHQRORQJHUPHUHDQLPDWHG
ZDOOSDSHUIRURXUVLPXODWHGZRUOG
$PHFKPDQZKHHOHGXSWRWDNHWKHLURUGHUD SUHFLVHFRS\RI*DUFRQ7KH
VHDWHG*DUFRQDGGUHVVHG9ROWDLUHVDGO\$P,WRVLWZKLOHP\FRQIUHUHPXVW
VWDQG"
%HUHDVRQDEOH9ROWDLUHVDLG,FDQWHPDQFLSDWHHYHU\VLPXODQWDOO
DWRQFH:KROOZDLWRQXV"%XVRXUGLVKHV"&OHDURXUWDEOH"6ZHHSXSRXU
IORRU"
:LWKVXIILFLHQWFRPSXWLQJSRZHU-RDQVDLGUHDVRQDEO\ODERU
HYDSRUDWHVGRHVLWQRW"6KHVWDUWOHGKHUVHOIZLWKWKHQHZUHJLPHQWVRI
NQRZOHGJHZKLFKPDUFKHGDWKHUILQJHUWLSV6KHKDGEXWWRIL[KHUWKRXJKWVRQ
DFDWHJRU\DQGWKHWHUPVDQGUHODWLRQVJRYHUQLQJWKDWSURYLQFHOHDSWLQWRKHU
PLQG:KDWFDSDFLW\6XFKJUDFH6XUHO\GLYLQH
9ROWDLUHVKRRNKLVKDQGVRPHKDLU,PXVWKDYHWLPHWRWKLQN,QWKH
PHDQZKLOH,OOKDYHWKUHHSDFNHWVRIWKDWSRZGHUGLVVROYHGLQD3HUULHUZLWK
WZRWKLQVOLFHVRIOLPHRQWKHVLGH$QGSOHDVHGRQWIRUJHW,VDLGWKLQ,I
\RXGR,VKDOOPDNH\RXWDNHLWEDFN
<HVVLUWKHQHZPHFKZDLWHUVDLG

-RDQDQG*DUFRQH[FKDQJHGDORRN2QHPXVWEHYHU\SDWLHQW-RDQVDLG
WR*DUFRQZKHQGHDOLQJZLWKNLQJVDQGUDWLRQDOPHQ


7KHSUHVLGHQWRI$UWLILFH$VVRFLDWHVZDYHGKLVKDQGDVKHHQWHUHG1LPV
RIILFH7KHSUHVLGHQWWRXFKHGKLVSDOPDVKHSDVVHGDQGZLWKDPHWDOOLFFOLFN
WKHGRRUORFNHGLWVHOIEHKLQGKLP1LPGLGQWNQRZDQ\RQHFRXOGGRWKDWEXW
KHVDLGQRWKLQJ
,ZDQWWKHPERWKGHOHWHGWKHSUHVLGHQWWROG1LP
,WPLJKWWDNHWLPH1LPVDLGXQHDVLO\7KHKXJHZRUNLQJVFUHHQVDURXQG
WKHPVHHPHGWRDOPRVWEHHDYHVGURSSLQJ,PQRWWKDWIDPLOLDUZLWKZKDWKHV
GRQH
,IWKDWGDPQHG0DUTDQG6\E\OKDGQWUXQRXWRQXV,ZRXOGQWKDYHWR
FRPHWR\RX7KLVLVDFULVLV1LP
1LPZRUNHGTXLFNO\,UHDOO\VKRXOGFRQVXOWWKHEDFNXSLQGLFHVMXVWLQ
FDVH
1RZ,ZDQWLWGRQHQRZ,YHJRWOHJDOEORFNVRQWKRVHZDUUDQWVEXW
WKH\ZRQWKROGIRUORQJ
<RXUHVXUH\RXZDQWWRGRWKLV"
/RRN-XQLQ6HFWRULVDEOD]H:KRFRXOGKDYHJXHVVHGWKDWWKLVGDPQHG
WLNWRNLVVXHZRXOGVWLUSHRSOHXSVRPXFK"7KHUHOOEHIRUPDOKHDULQJV
OHJDOLVWVVQLIILQJDURXQG
*RWWKHP VLU
1LPKDGFDOOHGXSERWK-RDQDQG9ROWDLUHRQIUHH]HIUDPH7KH\ZHUHLQ
WKHUHVWDXUDQWVHWWLQJUXQQLQJRQSLFNXSWLPHXVLQJSURFHVVRUVPRPHQWDULO\
LGOHDVWDQGDUG0HVKPHWKRG7KH\UHUXQQLQJIRUSHUVRQDOLW\LQWHJUDWLRQ
,WVOLNHOHWWLQJWKHLU VXEFRQVFLRXVFRPSRQHQWVUHFRQFLOHHYHQWVZLWKPHPRU\
IOXVKLQJWKHV\VWHPWKHZD\ZHGRZKHQZHVOHHSDQG
'RQWWUHDWPHOLNHDWRXULVW,ZDQWWKRVHWZRZLSHG
<HVVLU
7KH'VSDFHRIWKHRIILFHUHIUDFWHGZLWKVWUREHGLPDJHVRIERWK-RDQ
DQG9ROWDLUH1LPVWXGLHGWKHFRQWUROERDUGWHQWDWLYHO\PDSSLQJDVWUDWHJ\RI
QXPHULFDOVXUJHU\6LPSOHGHOHWLRQZDVLPSRVVLEOHIRUOD\HUHGSHUVRQDOLWLHV
,WUHVHPEOHGULGGLQJDEXLOGLQJRIPLFH,IKHEHJDQKHUH
$EUXSWO\UDLQERZVSUD\VSOD\HGDFURVVWKHVFUHHQ6LPXODWLRQ
FRRUGLQDWHVMXPSHGZLOGO\1LPIURZQHG
<RXFDQWGRWKDW9ROWDLUHVDLGVLSSLQJIURPDWDOOJODVV:HUH
LQYLQFLEOH1RWVXEMHFWWRGHFD\LQJIOHVKOLNH\RX
$UURJDQWEDVWDUGLVQWKH"WKHSUHVLGHQWIXPHG:K\VRPDQ\SHRSOH
ZHUHWDNHQLQE\KLP,OOQHYHU
<RXGLHGRQFH1LPVDLGWRWKHVLP6RPHWKLQJZDVJRLQJIXQQ\KHUH
<RXFDQGLHDJDLQ
'LHG"-RDQSXWLQORIWLO\<RXDUHPLVWDNHQ+DG,HYHUGLHG,P
VXUH,ZRXOGUHPHPEHU
1LPJULWWHGKLVWHHWK7KHUH ZHUHFRRUGLQDWHRYHUODSVWKURXJKRXWERWK
VLPV7KDWPHDQWWKH\KDGH[SDQGHGRFFXS\LQJDGMDFHQWSURFHVVRUVRQ
RYHUULGHV7KH\FRXOGFRPSXWHSRUWLRQVRIWKHPVHOYHVUXQQLQJWKHLUOD\HU
PLQGVDVSDUDOOHOSURFHVVLQJSDWKV:K\KDG0DUTJLYHQWKHPWKDW"2U KDG
KH"
6XUHO\VLU\RXHUU9ROWDLUHOHDQHGIRUZDUGZLWKDZDUQLQJHGJHLQ
KLVYRLFH1RJHQWOHPDQFRQIURQWVDODG\ZLWKKHUSDVW
-RDQWLWWHUHG7KHVLPZDLWURDUHG1LPGLGQRWJHWWKHMRNHEXWKHZDV
WRREXV\WRFDUH
7KLVZDVDEVXUG+HFRXOGQRWWUDFHDOOWKHUDPLILFDWLRQVRIWKHFKDQJHV
LQWKHVHVLPV7KH\KDGFDSDELOLWLHVRXWRIWKHLUFRPSXWLQJSHULPHWHU7KHLU
VXEPLQGVZHUHGLVSHUVHGLQWRSURFHVVRUVRXWVLGH$UWLILFH$VVRFLDWHVQRGHV

7KDWZDVKRZ0DUTDQG6\E\OJRWVXFKIDVWDXWKHQWLFZKROHSHUVRQDOLW\
UHVSRQVHWLPHV
:DWFKLQJWKHGHEDWH1LPKDGZRQGHUHGKRZWKHVLPVJHQHUDWHGVRPXFK
YLWDOLW\DQXQGHILQDEOHFKDULVPD+HUHLWZDVWKH\KDGRYHUODSSHGWKH
VXEPLQGFRPSXWDWLRQVLQWRRWKHUQRGHVWRFDOORQELJVODEVRISURFHVVRU
SRZHU4XLWHDIHDW&RQWUDU\WR$UWLILFH$VVRFLDWHVUXOHVWRRRIFRXUVH+H
WUDFHGWKHRXWOLQHVRIWKHLUZRUNZLWKVRPHDGPLUDWLRQ
6WLOOKHZDVGDPQHGLIKHZRXOGOHWDVLPWDONEDFNWRKLP$QGWKH\
ZHUHVWLOOODXJKLQJ
-RDQKHEDUNHG\RXUUHFUHDWRUVGHOHWHG\RXUPHPRU\RI\RXUGHDWK
<RXZHUHEXPPHGDWWKHVWDNH
1RQVHQVH-RDQVFRIIHG,ZDVDFTXLWWHGRIDOOFKDUJHV,DPD
VDLQW
1RERG\OLYLQJLVDVDLQW,VWXGLHG\RXUEDFNJURXQGGDWDVODEV7KDW
FKXUFKRI\RXUVOLNHGWRPDNHVXUH VDLQWVZHUHVDIHO\GHDGIRUDORQJWLPH
-RDQVQLIIHGGLVGDLQIXOO\
1LPJULQQHG6HHWKLV"$ODQFHRIILUHSRSSHGLQWRWKHDLUEHIRUHWKH
VLP+HKHOGVWHDG\PDGHIODPHVFUDFNOHQDVWLO\
,YHOHGWKRXVDQGVRIZDUULRUVDQGNQLJKWVLQWREDWWOH -RDQVDLG'R
\RXWKLQNDVXQEHDPJODQFLQJRIIDWLQ\VZRUGFDQIULJKWHQPH"
,KDYHQWIRXQGDJRRGHUDVXUHSDWK\HW1LPVDLGWRWKHSUHVLGHQW
%XW,ZLOO,ZLOO
,WKRXJKWWKLVZDVURXWLQHWKHSUHVLGHQWVDLG+XUU\
1RWZLWKVXFKDELJFURVVOLQNHGSHUVRQDOLW\LQYHQWRU\
)RUJHWGRLQJWKHVDOYDJHVDYHV:HGRQWQHHGWRSDFNWKHPDOOEDFN
LQWRWKHLURULJLQDOVSDFH
%XWWKDWOO
&KRSWKHP
)DVFLQDWLQJ9ROWDLUHVDLGVDUGRQLFDOO\OLVWHQLQJWRJRGVGHEDWH
RQHVIDWH
1LPJULPDFHG$VIRU\RXKHJODUHGDW9ROWDLUH\RXUDWWLWXGHV
WRZDUGUHOLJLRQPHOORZHGRQO\EHFDXVH0DUTGHOHWHGHYHU\EUXVKZLWKDXWKRULW\
\RXHYHUKDGEHJLQQLQJZLWK\RXUIDWKHU
)DWKHU",QHYHUKDGDIDWKHU
1LPVPLUNHG<RXSURYHP\SRLQW
+RZGDUH\RXWDPSHUZLWKP\PHPRU\9ROWDLUHVDLG([SHULHQFHLVWKH
VRXUFHRIDOONQRZOHGJH+DYHQW\RXUHDG/RFNH"5HVWRUHPHWRP\VHOIDW
RQFH
1RW\RXQRZD\%XWLI\RXGRQWVKXWXSEHIRUH,NLOO\RXERWK,
PLJKWMXVWUHVWRUHKHU<RXNQRZGDPQZHOOVKHEXUQHGWRDFULVSDWWKH
VWDNH
<RXGHOLJKWLQFUXHOW\GRQW\RX"9ROWDLUHVHHPHGWREHVWXG\LQJ1LP
DVLIWKHLUUHODWLRQVKLSZHUHUHYHUVHG2GGKRZWKHVLPGLGQRWVHHPZRUULHG
DERXWLWVLPSHQGLQJH[WLQFWLRQ
'HOHWHWKH SUHVLGHQWVQDSSHG
'HOHWHZKDW"DVNHG*DUFRQ
7KH6FDOSHODQGWKH5RVH9ROWDLUHVDLG:HDUHQRWIRUWKLVFRQIXVHG
DJHDSSDUHQWO\
*DUFRQFRYHUHGWKHVKRUWRUGHUFRRNVKXPDQKDQGZLWKWZRRIKLVIRXU
8VWRR"
<HVFHUWDLQO\9ROWDLUH VQDSSHG<RXUHRQO\KHUHRQRXUDFFRXQW
%LWSOD\HUV2XUVXSSRUWLQJFDVW
:HOOZHKDYHHQMR\HGRXUWLPHWKHFRRNVDLGGUDZLQJFORVHUWR
*DUFRQ7KRXJK,ZRXOGKDYHOLNHGWRVHHPRUHRILWDOO:HFDQQRWZDON
EH\RQGWKLVFLW\VWUHHW2XUIHHWFHDVHPRYLQJXVDWWKHHGJHWKRXJKZHFDQ
VHHVSLUHVLQWKHGLVWDQFH
'HFRUDWLRQ1LPPXWWHUHGLQWHQWRQDWDVNWKDWZDVJHWWLQJPRUH

FRPSOLFDWHGDVKHZRUNHG5LYXOHWVRIWKHLUSHUVRQDOLW\OD\HUVUDQHYHU\ZKHUH
OHDNLQJLQWRWKHQRGHVSDFHOLNH/LNHUDWVIOHHLQJDVLQNLQJ
<RXDVVXPHJRGOLNHSRZHUV9ROWDLUHVDLGHODERUDWHO\FDVXDOZLWKRXW
WKHFKDUDFWHUWRPDWFK
:KDW"7KHSUHVLGHQWZDVVWDUWOHG,PLQFRQWUROKHUH,QVXOWV
$K1LPVDLG7KLVPLJKWZRUN
'RVRPHWKLQJ FULHGWKH0DLGZLHOGLQJKHUVZRUGLQYDLQ
$XUHYRLUP\VZHHWSXFHOOH*DUFRQ$PDQDDXUHYRLU3HUKDSVZHOO
PHHWDJDLQ3HUKDSVQRW
$OOIRXUKRORJUDPVIHOOLQWRHDFKRWKHUVDUPV
7KHVHTXHQFH1LPKDGVHWXSEHJDQUXQQLQJ,WZDVDIHUUHWSURJUDP
VQLIILQJRXWFRQQHFWLRQVVFUXEELQJWKHPWKRURXJKO\1LPZDWFKHGZRQGHULQJ
ZKHUHGHOHWLRQHQGHGDQGPXUGHUEHJDQ
'RQW\RXJRJHWWLQJDQ\IXQQ\LGHDVVDLGWKHSUHVLGHQW
2QWKHVFUHHQ9ROWDLUHVRIWO\VDGO\TXRWHGKLPVHOI
6DGLVWKHSUHVHQWLIQRIXWXUHVWDWH
1REOLVVIXOUHWULEXWLRQPRUWDOVZDLW
$OOPD\EHZHOOWKDWKRSHFDQPDQVXVWDLQ
$OOQRZLVZHOOWLVDQLOOXVLRQYDLQ
+HUHDFKHGRXWWRFDUHVV-RDQVEUHDVW,WGRHVQWIHHOTXLWHULJKW:H
PD\QRWPHHW DJDLQEXWLIZHGREHVXUH,VKDOOFRUUHFWWKH6WDWHRI0DQ
7KHVFUHHQZHQWEODQN
7KHSUHVLGHQWODXJKHGLQWULXPSK<RXGLGLWJUHDW+HFODSSHG1LPRQ
WKHEDFN1RZZHPXVWFRPHXSZLWKDJRRGVWRU\3LQLWDOORQ0DUTDQG
6\E\O
1LPVPLOHGXQHDVLO\DVWKHSUHVLGHQWJXVKHGRQPDNLQJSODQVSURPLVLQJ
KLPDSURPRWLRQDQGDUDLVH+HGILJXUHGRXWWKHGHOHWHSURFHGXUHDOOULJKW
EXWWKHLQIRVLJQDWXUHVWKDWUDFHGWKURXJKWKHKRORVSDFHWKRVHODVWPRPHQWV
WROGDVWUDQJHDQGFRPSOH[WDOH7KH HFKRLQJFDJHRIGDWDVODEVKDGUHVRXQGHG
ZLWKGLVTXLHWLQJRGGQRWHV
1LPNQHZWKDW0DUTKDGJLYHQ9ROWDLUHDFFHVVWRP\ULDGPHWKRGVD
VHULRXVYLRODWLRQRIFRQWDLQPHQWSUHFDXWLRQV6WLOOZKDWFRXOGDQDUWLILFLDO
SHUVRQDOLW\DOUHDG\OLPLWHGGRZLWKVRPHPRUH0HVKFRQQHFWLRQV"5DWWOH
DURXQGJHWHDWHQXSE\SROLFLQJSURJUDPVVQLIIHUVVHHNLQJRXWUHGXQGDQFLHV
%XWERWK9ROWDLUHDQG-RDQIRUWKHGHEDWHKDGHQRUPRXVPHPRU\VSDFH
JUHDWYROXPHVRISHUVRQDOLW\UHDOP7KHQZKLOHWKH\HPRWHGDQGUROOHGWKHLU
UKHWRULFDFURVVWKHVWDGLXPDFURVVWKHZKROH0HVKKDGWKH\DOVREHHQ
ZRUNLQJIHYHULVKO\"6WUXPPLQJWKURXJKFUDQQLHVRIGDWDVWRUDJHZKHUHWKH\
FRXOGKLGHWKHLUTXDQWL]HGSHUVRQDOLW\VHJPHQWV"
7KHFDVFDGHRILQGLFHV1LPKDGMXVWZLWQHVVHGKLQWHG DWWKDW
SRVVLELOLW\&HUWDLQO\VRPHWKLQJKDGXVHGLPPHQVHPDVVHVRIFRPSXWDWLRQWKHVH
ODVWIHZKRXUV
:HOOFRYHURXUDVVZLWKVRPHSXEOLFVWDWHPHQWWKHSUHVLGHQWFURZHG
$OLWWOHFULVLVPDQDJHPHQWDQGLWOODOOEORZRYHU
<HVVLU
*RWWRNHHS 6HOGRQRXWRILW1RPHQWLRQWRWKHOHJDOLVWVULJKW"7KHQ
KHFDQSDUGRQXVRQFHKHV)LUVW0LQLVWHU
<HVVLUJUHDW\HVVLU
1LPWKRXJKWIHYHULVKO\+HVWLOOKDGRQHPRUHSD\PHQWGXHIURPWKDW
2OLYDZJX\.HHSLQJ2OLYDZLQIRUPHGDOODORQJKDGEHHQ HDV\$YLRODWLRQRI
KLVFRQWUDFWZLWK$EXWVRZKDW"$JX\KDGWRJHWE\ULJKW",WZDVMXVW
SODLQJRRGOXFNWKDWWKHSUHVLGHQWQRZZDQWHGGRQHZKDW2OLYDZKDGDOUHDG\
SDLGIRUGHOHWLRQ1RKDUPLQFROOHFWLQJWZLFHIRUWKHVDPHMRE
2UKDGVHHPHGVR1LPFKHZHGKLVOLS:KDWGLGDEXQFKRIGLJLWVPDWWHU
DQ\ZD\"
1LPIUR]H+DGWKHHQWLUHVLPUHVWDXUDQW*DUFRQVWUHHW-RDQJRQHLQ
DIODVK"8VXDOO\WKH\GLVVROYHGDVIXQFWLRQVGLHG$VLPZDVFRPSOH[DQGFRXOG

QRWVLPSO\VWRSDOOWKHLQWULFDWHLQWHUOD\HUVVKXWWLQJGRZQDWRQFH%XWWKLV
LQWHUZHDYHKDGEHHQXQSUHFHGHQWHGVRPD\EHLWZDVGLIIHUHQW
'RQH"*RRG7KHSUHVLGHQWFULVSO\FODSSHGKLPRQWKHVKRXOGHU
1LPIHOWWLUHGVDG6RPHGD\KHZRXOGKDYHWRH[SODLQDOOWKLVWR0DUT
(UDVLQJVRPXFKZRUN
%XW0DUTDQG6\E\OKDGGLVDSSHDUHGLQWRWKHFURZGVEDFNDWWKHFROLVHXP
:LVHO\WKH\GLGQWVKRZXSIRUZRUNRUHYHQJREDFNWRWKHLUDSDUWPHQWV
7KH\ZHUHRQWKHUXQ$QGZLWKWKHPKDGJRQHWKH-XQLQUHQDLVVDQFHXSLQ
VPRNHDVWKH-XQLQ6HFWRUEXUQHGDQGGLVVROYHGLQGLVFRUGDQGYLROHQFH
(YHQ1LPIHOWDVDGQHVVDWWKHVPDVKXS7KHHDJHUSDVVLRQDWHWDONRID
UHQDLVVDQFH7KH\KDGORRNHGWR-RDQDQG9ROWDLUHIRUDNLQGRIPDWXULW\LQ
WKHHWHUQDOGHEDWHEHWZHHQ)DLWKDQG5HDVRQ%XWWKH,PSHULXPVXSSUHVVHG
SDVVLRQLQWKHHQG7RRGHVWDELOL]LQJ
2IFRXUVHWKHZKROHWLNWRNPRYHPHQWKDGWREHVTXDVKHGWRR+HKDG
VHTXHVWHUHG0DUTVPHPRU\FRPSOH[DERXWWKHGHEDWHRI\HDUVDJR&OHDUO\
URERWVZKDWHYHUWKH\PLJKWEHZRXOGEHWRR XQVHWWOLQJDQLVVXHWRHYHU
EULQJXSLQDUDWLRQDOVRFLHW\
1LPVLJKHG+HNQHZWKDWKHKDGPHUHO\HGLWHGDZD\HOHFWULFDOFLUFXLWV
3URIHVVLRQDOVDOZD\VNHSWWKDWILUPO\LQPLQG
6WLOOLWZDVZUHQFKLQJ7RVHHLWJR$OOWULFNOHGDZD\OLNHJUDLQVRI
GLJLWDOVDQGGRZQWKHREVFXUHKRXUJODVVRIVLPXODWHGWLPH
5(1'(=9286

5'DQHHO2OLYDZDOORZHGKLVIDFHWRH[SUHVVVTXLQWH\HGFRQFHUQ7KH
FUDPSHGURRPVHHPHGEDUHO\DEOHWRFRQWDLQKLVJULPPRRG
6WLOO'RUVUHDGWKLVDVDFRQFHVVLRQWRKHU6KHOLYHGDPRQJKXPDQVDQG
UHOLHGRQWKHLUIDFLDODQGERG\H[SUHVVLRQVYROXQWDU\DQGXQZLOOHGDOLNH6KH
KDGQRLGHDZKHUH2OLYDZVSHQWPRVWRIKLVWLPH3HUKDSVWKHUHZHUHHQRXJK
URERWVWRIRUPDVRFLHW\"7KLVLGHDVKHKDGQHYHUHQWHUWDLQHG7KHLQVWDQWVKH
GLGVKHZRQGHUHGZK\VKHKDGQHYHUWKRXJKWRILWEHIRUH%XWQRZKHVSRNH
7KHVLPXODWLRQVDUHTXLWHGHDG"
'RUVNHSWKHUYRLFHOHYHOIUHHRIEHWUD\LQJHPRWLRQ
6RLWVHHPV
:KDWHYLGHQFH"
$UWLILFH$VVRFLDWHVEHOLHYHVVR
7KHPDQ,KDGKLUHGWKHUHQDPHG1LPLVQRWHQWLUHO\FHUWDLQ
+HUHSRUWVWR\RX"
,QHHGVHYHUDOLQSXWVWRDQ\FULWLFDOVLWXDWLRQ,QHHGHGWRGLVFUHGLW
WKHWLNWRNIUHHGRPLGHDWKH-XQLQUHQDLVVDQFHWKH\DUHGHVWDELOL]LQJ$FWLQJ
WKURXJKWKHVHVLPXODWLRQVVHHPHGDSURPLVLQJFKDQQHO,KDGQRWDOORZHGIRU
WKHIDFWWKDWFRPSXWHULVWVRIWRGD\DUHQRWDVVNLOOHGDVWKRVHRIILIWHHQ
WKRXVDQG\HDUVDJR
'RUVIURZQHG7KLVOHYHORILQWHUIHUHQFHLVDOORZHG"
5HPHPEHUWKH=HURWK/DZ
6KHGLGQRWDOORZKHUGLVWUHVVWRVKRZLQKHUIDFHRUYRLFH,EHOLHYH
WKHVLPXODWLRQVDUHHUDVHG
*RRG%XWZHPXVWEHVXUH
,KDYHKLUHGVHYHUDOVQLIIHUVWRILQGWUDFHVRIWKHPLQWKH7UDQWRU
0HVK6RIDUQRWKLQJ
'RHV+DULNQRZRI\RXUHIIRUW"
2IFRXUVHQRW
2OLYDZJD]HGDWKHUVWHDGLO\+HPXVWQRW<RXDQG,PXVWQRWPHUHO\
NHHSKLPVDIHWRGRKLVZRUN:HPXVWJXLGHKLP
7KURXJKGHFHSWLRQ
+HKDGODSVHGWRWKHXQQHUYLQJPDQQHURIQRWEOLQNLQJRUOHWWLQJKLV

H\HVPRYH,WPXVWEH
,GRQRWOLNHWRPLVOHDGKLP
2QWKHFRQWUDU\\RXDUHFRUUHFWO\OHDGLQJKLP7KURXJKRPLVVLRQV
,HQFRXQWHUHPRWLRQDOGLIILFXOW\
%ORFNV9HU\KXPDQDQG,PHDQWKDWDVDFRPSOLPHQW
,ZRXOGSUHIHUWRGHDOZLWKSRVLWLYHWKUHDWVWR+DUL7RJXDUGKLPQRW
WRGHFHLYHKLP
2IFRXUVH6WLOOQRVPLOHRUJHVWXUH%XWLWPXVWEHWKLVZD\:H
OLYHLQWKHPRVWRPLQRXVHUDRIDOO*DODFWLFKLVWRU\
+DULLVEHJLQQLQJWRVXVSHFWVRWRR
7KHULVHRIWKH1HZ5HQDLVVDQFHRQ6DUNLVDIXUWKHUGDQJHURQHRI
PDQ\ZHIDFH%XWWKLVH[FDYDWLRQRIDQFLHQWVLPXODWLRQVLVHYHQZRUVH7KH
-XQLQGLVRUGHUVDUHEXWDQHDUO\VLJQDWXUHRIZKDWFRXOGFRPH6XFKUHVHDUFK
FRXOGOHDGWRWKHHQJLQHHULQJRIDQHZUDFHRIURERWV7KLVFDQQRWEHDOORZHG
IRULWZRXOGLQWHUIHUHZLWKRXUPLVVLRQ
,XQGHUVWDQG,WULHGWRGHVWUR\WKHVLPXODWLRQIHUULWHEORFNV
,NQRZLWZDVDOOLQ\RXUUHSRUW'RQRWEODPH\RXUVHOI
,ZRXOGOLNHWRKHOSPRUHEXW,DPFRQVXPHGE\GHIHQGLQJ+DUL
,XQGHUVWDQG,ILWLVDQ\FRQVRODWLRQWKHUHHPHUJHQFHRIVLPXODWLRQV
ZDVLQHYLWDEOH
6KHEOLQNHG:K\"
,WROG\RXRIDVLPSOHWKHRU\RIKLVWRU\RQHZHKDYHRSHUDWHGXQGHU
IRURYHUWHQWKRXVDQG\HDUV$FUXGHSV\FKRKLVWRU\,WSUHGLFWHGWKDWWKH
VLPXODWLRQV,ZHOOZHVXSSUHVVHGHLJKWWKRXVDQG\HDUVDJRZRXOGILQGDQ
DXGLHQFHKHUH
<RXUWKHRU\LVWKDWJRRG"
$V+DULUHPDUNVKLVWRU\UHSHDWVLWVHOIEXWLWGRHVQRWVWXWWHU,
NQHZLWZDVLPSRVVLEOHWRHUDVHDOO FRSLHVRIVLPXODWLRQVWKURXJKRXWWKH
JDOD[\+HVWHHSOHGKLVKDQGVDQGSHHUHGDWWKHPDVLIFRQWHPSODWLQJD
VWUXFWXUH:KHQVRFLDOIHUPHQWGHYHORSVDWDVWHIRUVXFKWKLQJVWKH\RQFH
PRUHDSSHDUXSRQWKHPHQXRIKLVWRU\
,DPVRUU\,FRXOGQRWDUUDQJHWKHLUGHVWUXFWLRQ
7KHUHDUHIRUFHVDWZRUNKHUH\RXFDQQRWFRXQWHU'RQRWVRUURZIRU
WXUQVRIWKHZHDWKHU$ZDLWLQVWHDGWKHORQJVORZFRPLQJRIWKHFOLPDWH
2OLYDZUHDFKHGRXWDQGWRXFKHGKHUKDQG6KHVWXGLHGKLVIDFH
$SSDUHQWO\IRUKHUHDVHKHKDGUHWXUQHGWRIXOOIDFLDOH[SUHVVLRQLQFOXGLQJ
FRQVLVWHQWPRYHPHQWRIKLV$GDPVDSSOHZKHQKHVZDOORZHG0LQRUFRPSXWDWLRQV
EXWVKHDSSUHFLDWHGWKHWRXFK
,FDQGHYRWHP\VHOIVROHO\WRKLVVDIHW\WKHQ")RUJHWWKH
VLPXODWLRQV"
<HV7KH\DUHP\PDWWHU,PXVWILQGDZD\WRGHIXVHWKHLULPSDFW7KH\
DUHUREXVW,NQHZWKHPXVHGWKHPORQJDJR
+RZFDQWKH\EHPRUHVWDOZDUWWKDQXV"WKDQ\RX"
7KH\DUHVLPXODWHGKXPDQV,DPDVHSDUDWHVRUW6RDUH\RX
<RXZHUHDEOHWREH)LUVW0LQLVWHU
,IXQFWLRQHGDVDNLQGRISDUWLDOKXPDQ7KDWLVDQLQVLJKWIXOZD\RI
UHJDUGLQJRXUVHOYHV,UHFRPPHQGLWWR\RX
3DUWLDO"
+HVDLGJHQWO\7KHUHLVPXFK\RXGRQRWGR
,SDVVDVKXPDQ,FDQFRQYHUVHZRUN
)ULHQGVKLSVIDPLO\WKHFRPSOH[ZHEELQJWKDWGHQRWHVKXPDQVDELOLW\
WRPRYHIURPWKHLQGLYLGXDOWRWKHFROOHFWLYHVWULNLQJDEDODQFHDOOWKHVH
VXEWOHFUDIWVOLHEH\RQGXV
,GRQWZDQWWR
3UHFLVHO\<RXDUHVXEWO\DLPHGDW\RXUWDUJHW
%XW\RXUXOHG$V)LUVW0LQLVWHU
,KDGUHDFKHGP\OLPLW6R,OHIW

7KH(PSLUHUDQZHOOXQGHU\RXU
,WGHFD\HGIXUWKHU$V+DULH[SHFWHGDQGRXUFUXGHWKHRU\IDLOHGWR
SUHGLFW
$QGZK\GLG\RXWHOO&OHRQWRPDNHKLP)LUVW0LQLVWHU"VKHEOXUWHG
RXW
+HPXVWEHLQDSRVLWLRQZKLFKZLOOJLYHKLPIUHHGRPRIPRYHPHQWDQG
SRZHUWRPDNHFRUUHFWLRQVLQ,PSHULDOSROLFLHVDVKHFRPHVWRXQGHUVWDQG
SV\FKRKLVWRU\EHWWHU+HFDQEHDWHPSRUDU\VWRSJDSRIJUHDWSRWHQF\
,WPD\GHIOHFWKLPIURPSV\FKRKLVWRU\LWVHOI
1R+DULZLOOILQGDZD\WRXVHWKDWH[SHULHQFH2QHRIKLVIDFHWV
ZKLFKHPHUJHVVWURQJO\LQKLVFODVVRILQWHOOHFWLVKLVDELOLW\WROHDUQIURP
WKHVHDVRQLQJRIOLIH
+DULGRHVQWZDQWWKH)LUVW0LQLVWHUVKLS
6R"+HOLIWHGDQH\HEURZ SX]]OHG
6KRXOGQWKLVRZQIHHOLQJVPDWWHU"
:HDUHKHUHWRJXLGHKXPDQLW\QRWWROHWLWPHUHO\PHDQGHU
%XWWKHGDQJHU
7KH(PSLUHQHHGVKLP:KDWVPRUHKHQHHGVWKH0LQLVWHUVKLSWKRXJKKH
GRHVQRWVHHWKDWDV\HWJUDQWHG+HZLOOKDYHDFFHVVWRDOO,PSHULDOGDWD
IRUXVHLQSV\FKRKLVWRU\
+HKDVVRPXFKGDWDDOUHDG\
0XFKPRUHZLOOEHQHHGHGWRPDNHDIXOOUXQQLQJPRGHO+HPXVWDOVRLQ
WKHIXWXUHKDYHSRZHUWRDFWRQDJUDQGVFDOH
%XWJUDQGFDQEHIDWDO3HRSOHOLNHWKLV/DPXUN,DPFHUWDLQKHLV
GDQJHURXV
4XLWHVR%XW,GHSHQGXSRQ\RXWRNHHS+DULIURPKDUP
,ILQGP\VHOIJHWWLQJVKRUWRIWHPSHUP\MXGJPHQW
<RXDUHPRUHQHDUO\KXPDQLQ\RXUHPXODWLRQFLUFXLWVWKDQ,([SHFWWR
EHDUWKHEXUGHQWKDWIDFWLPSOLHV
6KHQRGGHG,ZLVK,FRXOGVHH\RXPRUHRIWHQDVN
,PRYHTXLFNO\WKURXJKWKH(PSLUHGRLQJZKDWWDVNV,FDQ,KDYHQRW
EHHQLQ7UDQWRUVLQFH,OHIWWKH)LUVW0LQLVWHUVKLSP\VHOI
$UH\RXVXUHLWLVVDIHIRU\RXWRWUDYHOVR"
,KDYHPDQ\GHIHQVHVDJDLQVWGHWHFWLRQRIP\WUXHQDWXUH<RXKDYHHYHQ
PRUHIRU\RXDUHQHDUO\QDWXUDO
,FDQQRWSHQHWUDWHDIXOOZHDSRQVVFUHHQDURXQGWKHSDODFHWKRXJK"
2OLYDZVKRRNKLVKHDG7KHLUWHFKQRORJ\H[FHHGHGRXUFDSDFLW\WR
GLVJXLVHTXLWHVRPHZKLOHDJR,HYDGHGLWZKLOH)LUVW0LQLVWHUEHFDXVHQRRQH
GDUHGWHVWPH
7KHQ,FDQQRWSURWHFW+DULLQWKHSDODFH
<RXVKRXOGQRWKDYHWR2QFHKHEHFRPHV)LUVW0LQLVWHU\RXZLOOEH
DEOHWRSDVVZLWKKLPWKURXJKWKHLUGHWHFWRUV7KRVHDUHRQO\XVHGIRUPDMRU
RFFDVLRQV
8QWLOKHLV)LUVW0LQLVWHUWKHQ
+LVGDQJHULVPD[LPXP
9HU\ZHOO,ZLOOIRFXVRQ+DUL,ZRXOGSUHIHUWROHDYHWKRVH
VLPXODWLRQVWR\RX
, IHDUWKH\DQG6DUNZLOOEHTXLWHHQRXJKIRUPHWRKDQGOH,ZHQWWR
WKHFROLVHXPLQ-XQLQ6HFWRUVDZWKHPUXQZLOG7KHWLNWRNLVVXHLQIODPHV
KXPDQVVWLOOMXVWDVZHZDQW
7KHVHWLNWRNVVXUHO\WKH\ZLOOQRWDSSURDFKRXUOHYHOVRIFRJQLWLRQ"
+LVPRXWKWZLWFKHGMXVWRQFH$QGZK\QRW"
8QGHUKXPDQJXLGDQFH"
7KH\FRXOGTXLFNO\ULYDOXV
7KHQRXUJUDQGGHVLJQV
2QWKHWUDVKKHDS
,GRQRWOLNHVXFKDSURVSHFWVKHVDLGIDFHIOXVKHG

7KHDQFLHQWWDERRVRXUNLQGVRODERUHGWRSXWLQSODFHDUHEUHDNLQJ
GRZQSHUKDSVIRUHYHU
:KDWGRHV\RXURXUWKHRU\RIKLVWRU\VD\"
,WLVQRWQHDUO\JRRGHQRXJKWRVD\DQ\WKLQJ$JDLQVWDEDFNJURXQGRI
VRFLDOVWDELOLW\VXFKDVWKLV(PSLUHHQMR\HGIRUVRORQJVLPXODWLRQVZHUH
GHVWDELOL]LQJ1RZ"1RRQHKXPDQRUURERWNQRZV$OOSDUDPHWHUVDUH
DFFHOHUDWLQJ+LVIDFHVODFNHQHGORVLQJDOOFRORUDQGPXVFOHWRQHDVLI
IURPDQLPPHQVHIDWLJXH:HPXVWWXUQPDWWHUVDVPXFKDVZHFDQRYHUWR
WKHPWRWKHKXPDQV
7R+DUL
+LPPRVWHVSHFLDOO\
B
3$57
%2'<32/,7,&6

B
)281'$7,21($5/<+,6725<ILUVWSXEOLFLQWLPDWLRQVRISV\FKRKLVWRU\DVD
SRVVLEOHVFLHQWLILFGLVFLSOLQHVXUIDFHGGXULQJWKHSRRUO\GRFXPHQWHGHDUO\
SHULRGRI6HOGRQVSROLWLFDOOLIH:KLOHWKH(PSHURU&OHRQVHWJUHDWVWRUHLQ
LWVSRVVLELOLWLHVSV\FKRKLVWRU\ZDVYLHZHGE\WKHSROLWLFDOFODVVDVDPHUH
DEVWUDFWLRQLIQRWDMRNH7KLVPD\KDYHUHVXOWHGIURPPDQHXYHULQJVE\6HOGRQ
KLPVHOIZKRQHYHUUHIHUUHGWRWKHVXEMHFWE\WKHQDPHKHKDGJLYHQLW(YHQ
DW WKLVHDUO\VWDJHKHVHHPVWRKDYHUHDOL]HGWKDWZLGHVSUHDGNQRZOHGJHRI
SV\FKRKLVWRU\DQGDQ\PRYHPHQWIRXQGHGXSRQLWZRXOGHQMR\OLWWOHSUHGLFWLYH
VXFFHVVVLQFHPDQ\ZRXOGWKHQEHDEOHWRDFWWRRIIVHWLWVSUHGLFWLRQVRU
WDNHDGYDQWDJHRIWKHP6RPHKDYHFRQGHPQHG6HOGRQDVVHOILVKIRU
KRDUGLQJWKHSV\FKRKLVWRULFDOPHWKRGEXWRQHPXVWUHPHPEHUWKHH[WUHPH
UDSDFLW\RISROLWLFDOOLIHLQWKHVHZDQLQJ\HDUV
(1&<&/23(',$*$/$&7,&$


+DUL6HOGRQVGHVNVHFFKLPHGDQGDQQRXQFHG0DUJHWWD0RRQURVHGHVLUHVD
FRQYHUVDWLRQ
+DULORRNHGXSDWWKH'LPDJHRIDVWULNLQJZRPDQKRYHULQJEHIRUHKLP
8UQ"2K:KRVVKH"+LVVHFZRXOGQRWLQWHUUXSWKLPDPLGKLVFDOFXODWLRQV
XQOHVVWKLVZHUHVRPHERG\LPSRUWDQW
&URVVFKHFNUHYHDOVWKDWVKHLVWKHOHDGLQJLQWHUYLHZHUDQGSROLWLFDO
PDYHQLQWKHPXOWLPHGLDFRPSOH[
6XUHVXUHEXWZK\LVVKHFRQVHTXHQWLDO"
6KHLVFRQVLGHUHGE\DOOFURVVFXOWXUDOPRQLWRUVWREHDPRQJWKHILIW\
PRVWLQIOXHQWLDOILJXUHVRQ7UDQWRU,VXJJHVW
1HYHUKHDUGRIKHU+DULVDWXSEUXVKHGDWKLVKDLU,VXSSRVH,
VKRXOG)XOOILOWHUWKRXJK
,IHDUP\ILOWHUVDUHGRZQIRUUHFDOLEUDWLRQ,I
'DPQLWWKH\YHEHHQRXWIRUDZHHN
,IHDUWKHPHFKDQLFDOLQFKDUJHRIWKHQHZFDOLEUDWLRQVKDV EHHQ
GHIHFWLYH
0HFKVZKLFKZHUHDGYDQFHGWLNWRNVZHUHIDLOLQJRIWHQWKHVHGD\V6LQFH
WKH-XQLQULRWVVRPHKDGHYHQEHHQDWWDFNHG+DULVZDOORZHGDQGVDLG3XW
KHUWKURXJKDQ\ZD\
+HKDGXVHGILOWHUVRQKRORSKRQHVIRUVRORQJKHFRXOGQRWQRZGLVJXLVH
KLVIHHOLQJV&OHRQVVWDIIKDGLQVWDOOHGVRIWZDUHWRUHQGHUWKHILWWLQJ
SUHVHOHFWHGERG\ODQJXDJHIRUKLP:LWKVRPHVSUXFLQJXSE\WKH,PSHULDO
$GYLVRUVLWQRZPRGXODWHGKLVDFRXVWLFVLJQDWXUHIRUDIXOOFRQILGHQW
UHVRQDQWWRQH$QGLIKHZDQWHGLWHGLWHGKLVYRFDEXODU\KHZDVDOZD\V

ODSVLQJLQWRWHFKQRVSHDNZKHQKHVKRXOGEHH[SODLQLQJVLPSO\
$FDGHPLFLDQ0RRQURVHVDLGEULJKWO\,ZRXOGVRPXFKOLNHWRKDYHD
OLWWOHWDONZLWK\RX
$ERXWPDWKHPDWLFV"KHVDLGEODQGO\
6KHODXJKHGPHUULO\1RQRWKDWZRXOGEHIDURYHUP\KHDG,
UHSUHVHQWELOOLRQVRILQTXLULQJPLQGVZKRZRXOGOLNHWRNQRZ\RXUWKRXJKWVRQ
WKH(PSLUHWKH4XDWKDQDQTXHVWLRQVWKH
7KHZKDW"
4XDWKDQDQWKHGLVSXWHRYHU=RQDODOLJQPHQW
1HYHUKHDUGRILW
%XW\RXUHWREH)LUVW0LQLVWHU6KHVHHPHGJHQXLQHO\VXUSULVHG
WKRXJK+DULUHPLQGHGKLPVHOIWKDWWKLVZDVSUREDEO\DVXSHUEO\DGHSWILOWHU
IDFH
6R,DPSHUKDSV8QWLOWKHQ,ZLOOQRWERWKHU
:KHQWKH+LJK&RXQFLOVHOHFWVWKH\PXVWNQRZ WKHYLHZVRIWKH
FDQGLGDWHVVKHVDLGUDWKHUSULPO\
7HOO\RXUYLHZHUVWKDW,GRP\KRPHZRUNRQO\MXVWEHIRUHLWVGXH
6KHORRNHGFKDUPHGZKLFKPDGHKLPFHUWDLQWKDWVKHZDVILOWHUHG+HKDG
OHDUQHGIURPPDQ\FROOLVLRQVZLWKWKHPWKDWPHGLDPDYHQVZHUHHDVLO\LUNHG
ZKHQEUXVKHGDVLGH7KH\VHHPHGWRIHHOLWTXLWHQDWXUDOWKDWVLQFHDQ
LPPHQVHDXGLHQFHVDZWKURXJKWKHLUH\HVWKH\FDUULHGDOOWKHPRUDOKHIWRI
WKDWDXGLHQFH
:KDWDERXWDVXEMHFW\RXFHUWDLQO\PXVWNQRZWKH-XQLQGLVDVWHU"$QG
WKHORVVVRPHVD\HVFDSHRIWKH9ROWDLUHDQG-RDQRI$UFVLPV"
1RWP\GHSDUWPHQW+DULVDLG&OHRQKDGDGYLVHGKLPWRNHHSKLV
GLVWDQFHIURPWKHHQWLUHVLPLVVXH
5XPRUVVXJJHVWWKDWWKH\FDPHIURP\RXUGHSDUWPHQW
&HUWDLQO\RQHRIRXUUHVHDUFKPDWKLVWVIRXQGWKHP:HOHDVHGULJKWVWR
WKRVHSHRSOHZKDWZDVWKHLUQDPH"
$UWLILFH$VVRFLDWHVDV,DPVXUH\RXNQRZ
8P\HV
7KLVGLVWUDFWHGSURIHVVRUUROHLVQRWFRQYLQFLQJVLU
<RXGUDWKHU,VSHQWP\WLPHUXQQLQJIRURIILFHDQG WKHQSUHVXPDEO\
UXQQLQJIRUFRYHU"
7KHZRUOGWKHZKROH(PSLUHKDVDULJKWWRNQRZ
6R,VKRXOGVWDQGRQO\IRUZKDWWKHSHRSOHZLOOIDOOIRU"
+HUPRXWKWZLVWHGFRPLQJWKURXJKKHUILOWHUVVRDSSDUHQWO\VKHKDG
GHFLGHGWRSOD\WKLVLQWHUYLHZDVDFRQWHVWRIZLOOV<RXUHKLGLQJWKH
SHRSOHVEXVLQHVVIURP
0\UHVHDUFKLVP\RZQEXVLQHVV
6KHZDYHGWKLVDVLGH:KDWGR\RXVD\DVDPDWKHPDWLFLDQWRWKRVHZKR
IHHOWKDWGHHSVLPVRIUHDOSHRSOHDUHLPPRUDO"
+DULZLVKHGIHUYHQWO\IRUKLVRZQIDFHILOWHUV+HZDVVXUHKHZDV
JLYLQJDZD\VRPHWKLQJVRKHIRUFHGKLVIDFHWRVWD\EODQN%HVWWRGHIOHFW
WKHDUJXPHQW+RZUHDOZHUHWKRVHVLPV"&DQDQ\ERG\NQRZ"
7KH\FHUWDLQO\VHHPHGUHDODQGKXPDQWRWKHDXGLHQFH0RRQURVHVDLG
UDLVLQJKHUH\HEURZV
,PDIUDLG,GLGQWZDWFKWKHSHUIRUPDQFH+DULVDLG,ZDVEXV\
6WULFWO\WUXHDWOHDVW
0RRQURVHOHDQHGIRUZDUGVFRZOLQJ:LWK\RXUPDWKHPDWLFV":HOOWKHQ
WHOOXVDERXWSV\FKRKLVWRU\
+HZDVVWLOONHHSLQJKLVIDFH ZRRGHQZKLFKJDYHWKHZURQJVLJQDO+H
PDGHKLPVHOIVPLOH$UXPRU
,KDYHLWRQJRRGDXWKRULW\WKDW\RXDUHIDYRUHGE\WKH(PSHURUEHFDXVH
RIWKLVWKHRU\RIKLVWRU\
:KDWDXWKRULW\"
1RZVLU,VKRXOGDVNWKHTXHVWLRQVKHUH

:KRVD\V",PVWLOODSXEOLFVHUYDQWDSURIHVVRU$QG\RXPDGDPDUH
WDNLQJXSWLPH,FRXOGEHGHYRWLQJWRP\VWXGHQWV
:LWKDZDYH+DULFXWRIIWKHOLQN+HKDGOHDUQHGVLQFHEDQG\LQJZRUGV
ZLWK/DPXUNLQFOHDUYLHZRIDQXQVXVSHFWHG'VQRXWWRFKRSRIIWDON ZKHQLW
ZDVJRLQJWKHZURQJZD\
'RUVFDPHWKURXJKWKHGRRUDVKHOHDQHGEDFNLQWRKLVDLUFKDLU,JRWD
KDLOVDLGVRPHERG\LPSRUWDQWZDVJULOOLQJ\RX
6KHVJRQH3RNHGDWPHDERXWSV\FKRKLVWRU\
:HOOLWZDVERXQGWRJHWRXW,WVDQH[FLWLQJ V\QWKHVLVRIWHUPV
$SSHDOVWRWKHLPDJLQDWLRQ
0D\EHLI,GFDOOHGLWVRFLRKLVWRU\SHRSOHZRXOGWKLQNLWPRUHERULQJ
DQGOHDYHPHDORQH
<RXFRXOGQHYHUOLYHZLWKVRXJO\DZRUG
7KHHOHFWURVKLHOGVSDUNOHGDQGVQDSSHGDV<XJR$PDU\OFDPHWKURXJK$P
,LQWHUUXSWLQJDQ\WKLQJ"
1RWDWDOO+DULOHDSWXSDQGKHOSHGKLPWRDFKDLU+HZDVVWLOO
OLPSLQJ+RZVWKHOHJ"
+HVKUXJJHG'HFHQW
7KUHHWKXJJRVKDGFRPHWR<XJRRQWKHVWUHHWDZHHNDJRDQGH[SODLQHG
WKHVLWXDWLRQYHU\FDOPO\7KH\KDGEHHQFRPPLVVLRQHGWRGRKLPGDPDJHD
ZDUQLQJKHZRXOGQRWIRUJHW6RPHERQHVKDGWREHEURNHQWKDWZDVWKH
VSHFLILFDWLRQQRWKLQJKHFRXOGGRDERXWLW7KHOHDGHUH[SODLQHGKRZWKH\
FRXOGGRWKLVWKHKDUGZD\,IKHIRXJKWKHZRXOGJHWPHVVHGXS7KHHDV\
ZD\WKH\ZRXOGEUHDNKLVVKLQERQHLQRQHFOHDQVQDS
'HVFULELQJLWDIWHUZDUG<XJRKDGVDLG,WKRXJKWDERXWLWVRPH
\NQRZDQGVDWGRZQRQWKHVLGHZDONDQGVWXFNP\OHIWOHJRXWVWUDLJKW
%UDFHGLWDJDLQVWWKHFXUEEHORZWKHNQHH7KHOHDGHUNLFNHGPHWKHUH$JRRG
MRELWEURNHFOHDQDQGVWUDLJKW
+DULKDGEHHQKRUULILHG7KHPHGLDODWFKHGRQWRWKHVWRU\RIFRXUVH
+LVRQO\ZU\VWDWHPHQWWRWKHPZDV9LROHQFHLVWKHGLSORPDF\RIWKH
LQFRPSHWHQW
0HGWHFKWHOOVPHLWOOKHDOXSLQDQRWKHUZHHN<XJRVDLGDV+DUL
KHOSHGKLPVWUHWFKRXWWKHDLUFKDLUVKDSLQJLWVHOIVXEWO\
7KH,PSHULDOVVWLOOKDYHQWDFOXHZKRGLGLW'RUVVDLGSDFLQJ
UHVWOHVVO\DURXQGWKHRIILFH
3OHQW\RISHRSOHZLOOGRDMREOLNHWKLV<XJRJULQQHGDQHIIHFW
VRPHZKDWRIIVHWE\WKHELJEUXLVHRQKLVMDZ7KHLQFLGHQWKDGQRWEHHQTXLWH
DVJHQWOHPDQO\DVKHGHVFULEHGLW7KH\NLQGDOLNHGGRLQJLWWRD'DKOLWH
WRR
'RUVSDFHGDQJULO\,I,GEHHQWKHUH
<RXFDQWEHHYHU\ZKHUH +DULVDLGNLQGO\7KH,PSHULDOVWKLQNLW
ZDVQWUHDOO\DERXW\RXDQ\ZD\<XJR
<XJRVPRXWKWZLVWHGUXHIXOO\DW+DUL,ILJXUHG<RXULJKW"
+DULQRGGHG$VLJQDORQHRIWKHPVDLG
'RUVWXUQHGVKDUSO\IURPKHUSDFLQJ2IZKDW"
$ZDUQLQJ<XJRVDLG3ROLWLFV
,VHHVKHVDLGTXLFNO\/DPXUNFDQQRWVWULNHDW\RXGLUHFWO\EXWKH
OHDYHV
$QXQVXEWOHFDOOLQJFDUG<XJRILQLVKHGIRUKHU'RUVVPDFNHGKHU
KDQGVWRJHWKHU:HVKRXOGWHOOWKH(PSHURU
+DULKDGWRFKXFNOH$QG\RXDKLVWRULDQ
9LROHQFHKDVDOZD\VSOD\HGDUROHLQLVVXHVRIVXFFHVVLRQ,WFDQQHYHU
EHIDUIURP&OHRQVPLQG
)RUHPSHURUV\HVVKHFRXQWHUHG%XWLQDFRQWHVWIRU)LUVW
0LQLVWHU
3RZHULVJHWWLQVFDUFHURXQGKHUH<XJRGUDZOHGVDUFDVWLFDOO\
3HVN\'DKOLWHVPDNLQWURXEOH(PSLUHLWVHOIVORZLQGRZQWRR2UVSLQQLQ

RIILQWRORRQ\UHQDLVVDQFHV3UREDEO\D'DKOLWHSORWWKDWULJKWR"
+DULVDLG:KHQIRRGJHWVVFDUFHWDEOHPDQQHUVFKDQJH
<XJRVDLG,OOMXVWEHWWKH(PSHURUVJRWWKLVDOODQDO\]HG
'RUVEHJDQSDFLQJDJDLQ2QHRIKLVWRU\VOHVVRQVLVWKDWHPSHURUVZKR
RYHUDQDO\]HIDLOZKLOHWKRVHZKRRYHUVLPSOLI\VXFFHHG
$QHDWDQDO\VLV+DULVDLGEXWVKHGLGQRWFDWFKKLVLURQ\
8K,DFWXDOO\FDPHLQWRJHWVRPHZRUNGRQH<XJRVDLGVRIWO\,YH
ILQLVKHGUHFRQFLOLQJWKH7UDQWRULDQKLVWRULFDOGDWDZLWKWKHPRGLILHG6HOGRQ
(TXDWLRQV
+DULOHDQHGIRUZDUGWKRXJK'RUVNHSWSDFLQJKHUKDQGVFODVSHGEHKLQG
KHUEDFN:RQGHUIXO+RZIDURIIDUHWKH\"
<XJRJULQQHGDVKHVOLSSHGDIHUULWHFXEHLQWR+DULVGHVNGLVSOD\VORW
:DWFK
7UDQWRUKDGHQGXUHGDWOHDVWHLJKWHHQPLOOHQQLDWKRXJKWKHSUH(PSLUH
SHULRGZDVSRRUO\GRFXPHQWHG<XJRKDGFROODSVHGWKHRFHDQRIGDWDLQWRD'
(FRQRPLFVOD\DORQJRQHD[LV VRFLDOLQGLFHVDORQJDQRWKHUZLWKSROLWLFV
PDNLQJXSWKHWKLUGGLPHQVLRQ(DFKFRQWULEXWHGDVXUIDFHIRUPLQJDVROLG
VKDSHWKDWKXQJDERYH+DULVGHVN7KHVOLSSHU\ORRNLQJEOREZDVPDQVL]HGDQG
LQFRQVWDQWPRWLRQGHIRUPLQJFDYHVRSHQLQJOXPSVULVLQJ&RORUFRGHG
LQWHUQDOIORZVZHUHYLVLEOHWKURXJKWKHWUDQVSDUHQWVNLQ
,WORRNVOLNHDFDQFHURXVRUJDQ'RUVVDLG:KHQ<XJRIURZQHGVKH
DGGHGKDVWLO\3UHWW\WKRXJK
+DULFKXFNOHG'RUVVHOGRPPDGHVRFLDOJDIIHVEXWZKHQVKHGLGVKHKDG
QRLGHDRIKRZWRUHFRYHU7KHOXPS\REMHFWKDQJLQJLQDLUWKUREEHGZLWKOLIH
FDSWXULQJKLVDWWHQWLRQ7KHZULWKLQJPDQLIROGVXPPHGXSWULOOLRQVRIYHFWRUV
WKHUDZGDWDGUDZQIURPFRXQWOHVVWLQ\OLYHV
7KLVHDUO\KLVWRU\KDGSDWFK\GDWD<XJRVDLG7KHVXUIDFHVMHUNHGDQG
OXUFKHG/RZUHVROXWLRQWRRDQGHYHQORZSRSXODWLRQVL]HDSUREOHPZH
ZRQWKDYHLQ(PSLUHSUHGLFWLRQV
6HHWKHWZRGHHVRFLRVWUXFWXUHV"+DULSRLQWHG$QGWKLVUHSUHVHQWV
HYHU\WKLQJLQ7UDQWRU"'RUVDVNHG
<XJRVDLG7RWKHPRGHOQRWDOOGHWDLOLVHTXDOO\LPSRUWDQW<RXGRQW
QHHGWRNQRZWKHRZQHURIDVWDUVKLSWRFDOFXODWHKRZLWZLOOIO\
+DULVDLGKHOSIXOO\SRLQWLQJDWDTXLFNMLWWHULQVRFLDOYHFWRUV
6FLHQWRFUDF\DURVHKHUHWKLUGPLOOHQQLXP7KHQDQHUDLQZKLFKVWDVLVDURVH
IURPPRQRSROLHV7KDWIHGULJLGLW\
7KHIRUPVVWHDGLHGDVWKHGDWDLPSURYHG<XJROHWLWUXQWLPHVWHSSLQJ
TXLFNO\VRWKDWWKH\VDZILIWHHQPLOOHQQLDLQWKUHHPLQXWHV,WZDVVWDUWOLQJ
WKHSXOVLQJVROLGJURZLQJP\ULDGRIIVKRRWVVWUXFWXUH HQGOHVVO\SUROLIHUDWLQJ
7KHPDGO\EXUJHRQLQJSDWWHUQVVSRNHRIWKH(PSLUHVFRPSOH[LW\IDUPRUHWKDQ
DQ\HPSHURUVORIW\VSHHFK
1RZKHUHVWKHRYHUOD\<XJRVDLGVKRZLQJKRZWKH6HOGRQ(TXDWLRQV
SRVWGLFWLQ\HOORZ
7KH\DUHQWP\HTXDWLRQV +DULVDLGDXWRPDWLFDOO\/RQJDJRKHDQG
<XJRKDGVHHQWKDWWRSUHGLFWZLWKSV\FKRKLVWRU\ILUVWGHPDQGHGWKDWWKH\
SRVWGLFWWKHSDVWIRUYHULILFDWLRQ7KH\ZHUH
-XVWZDWFK
$ORQJVLGHWKHGHHSEOXHGDWDILJXUHD\HOORZOXPSFRQJHDOHG,WORRNHG
WR+DULOLNHDQLGHQWLFDOWZLQWRWKHRULJLQDO(DFKZHQWWKURXJKFRQWRUWLRQV
VHHWKLQJZLWKKLVWRU\VHQHUJ\(DFKULSSOHDQGVQDJUHSUHVHQWHGPDQ\ELOOLRQV
RIKXPDQWULXPSKVDQGWUDJHGLHV(YHU\VPDOOVKXGGHUKDGRQFHEHHQDFDODPLW\
7KH\UHWKHVDPH+DULZKLVSHUHG
'DPQULJKW<XJRVDLG
7KHWKHRU\ILWV
<XS3V\FKRKLVWRU\ZRUNV
+DULVWDUHGDWWKHIOH[LQJFRORUV,QHYHUWKRXJKW
,WFRXOGZRUNVRZHOO"'RUVKDGZDONHGEHKLQGKLVFKDLUDQGQRZUXEEHG

KLVVFDOS
:HOO\HV
<RXKDYHVSHQW\HDUVLQFOXGLQJWKHSURSHUYDULDEOHV,WPXVWZRUN
<XJRVPLOHGWROHUDQWO\,IRQO\PRUHSHRSOHVKDUHG\RXUIDLWKLQ
PDWKLVWV<RXYHIRUJRWWHQWKHVSDUURZHIIHFW
'RUVZDVWUDQVIL[HGE\WKHVKLPPHULQJGDWDVROLGVQRZUHUXQQLQJ DOO
7UDQWRULDQKLVWRU\WKUREELQJZLWKGLIIHUHQWFRORUHGVFKHPHVWRVKRZXS
GLIIHUHQFHVEHWZHHQUHDOKLVWRU\DQGWKHHTXDWLRQVSRVWGLFWLRQV7KHUHZHUH
YHU\IHZ:KDWVPRUHWKH\GLGQRWJURZZLWKWLPH
1RWWDNLQJKHUH\HVIURPWKHGLVSOD\'RUVDVNHGVORZO\6SDUURZ":H
KDYHELUGVDVSHWVEXWVXUHO\
6XSSRVHDVSDUURZIODSVLWVZLQJVDWWKHHTXDWRURXWLQWKHRSHQ7KDW
VKLIWVWKHDLUFLUFXODWLRQDWLQ\DPRXQW,IWKLQJVEUHDNMXVWULJKWWKH
VSDUURZFRXOGWULJJHUDWRUQDGRXSDWWKHSROHV
'RUVZDVVWDUWOHG,PSRVVLEOH
+DULVDLG'RQWFRQIXVHLWZLWKWKHIDEOHGQDLOLQWKHVKRHRID
KRUVHWKDWDOHJHQGDU\EHDVWRIEXUGHQ5HPHPEHU"LWVULGHUORVWDEDWWOH
DQGWKHQDNLQJGRP7KDWZDVIDLOXUHRIDVPDOOFULWLFDOFRPSRQHQW
)XQGDPHQWDOUDQGRPSKHQRPHQDDUHGHPRFUDWLF7LQ\GLIIHUHQFHVLQHYHU\
FRXSOHGYDULDEOHFDQSURGXFHVWDJJHULQJFKDQJHV
,WWRRNDZKLOHWRJHWWKHSRLQWWKURXJK/LNHDQ\RWKHUZRUOG
7UDQWRUVPHWHRURORJ\KDGDGDXQWLQJVHQVLWLYLW\WRLQLWLDOFRQGLWLRQV$
VSDUURZVZLQJIOXWWHURQRQHVLGHRI7UDQWRUDPSOLILHGWKURXJKIOXLG
HTXDWLRQVRYHUZHHNVFRXOGGULYHDKRZOLQJKXUULFDQHDFRQWLQHQWDZD\1R
FRPSXWHUFRXOGPRGHODOOWKHWLQ\GHWDLOVRIUHDOZHDWKHUWRPDNHH[DFW
SUHGLFWLRQVSRVVLEOH
'RUVSRLQWHGDWWKHGDWDVROLGV6RWKLVLVDOOZURQJ"
,KRSHQRW+DULVDLG:HDWKHUYDULHVEXWFOLPDWHKROGVVWHDG\
6WLOOQRZRQGHU7UDQWRULDQVSUHIHULQGRRUV2XWGRRUVFDQEH
GDQJHURXV
7KHIDFWWKDWWKHHTXDWLRQVGHVFULEHZKDWKDSSHQHGZHOOLWPHDQVWKDW
VPDOOHIIHFWVFDQVPRRWKRXWLQKLVWRU\+DULVDLG
<XJRDGGHG6WXIIRQDKXPDQVFDOHFDQDYHUDJHDZD\
6KHVWRSSHGPDVVDJLQJ+DULVVFDOS7KHQSHRSOHGRQWPDWWHU"
+DULVDLGFDUHIXOO\0RVWELRJUDSK\SHUVXDGHVXVWKDWSHRSOHWKDWZH
DUHLPSRUWDQW3V\FKRKLVWRU\WHDFKHVWKDWZHDUHQW
$VDKLVWRULDQ,FDQQRWDFFHSW
/RRNDWWKHGDWD<XJRSXWLQ
7KH\ZDWFKHGDV<XJREURXJKWXSGHWDLOVKRZHGRIIIHDWXUHV)RU
RUGLQDU\SHRSOHKLVWRU\HQGXUHGWKURXJKDUWP\WKDQGOLWXUJ\7KH\IHOWLW
WKURXJKFRQFUHWHH[DPSOHVFORVHXSDEXLOGLQJDFXVWRPDKLVWRULFDOQDPH
+HDQG<XJRDQGWKHRWKHUVZHUHOLNHVSDUURZVWKHPVHOYHVKRYHULQJKLJKRYHUD
ODQGVFDSHXQJXHVVHGE\WKHLQKDELWDQWVEHORZ7KH\VDZWKHVORZVXUJHRI
WHUUDLQJODFLDODQGXQVWRSSDEOH
%XWSHRSOHKDYHWRPDWWHU'RUVYRLFHFDUULHGDQRWHRIIRUORUQKRSH
+DULNQHZWKDWVRPHZKHUHGHHSLQKHUOXUNHGWKHVWHUQGLUHFWLYHVRIWKH=HURWK
/DZEXWRYHUWKDWOD\DGHHSOD\HURIWUXHKXPDQIHHOLQJ6KHZDVDKXPDQLVW
ZKREHOLHYHGLQWKHSRZHURIWKHLQGLYLGXDODQGKHUHVKHPHWEOXQWXQFDULQJ
PHFKDQLVPLQWKHODUJH
7KH\GRDFWXDOO\EXWSHUKDSVQRWLQWKHZD\\RXZDQW+DULVDLG
JHQWO\:HVRXJKWRXWWHOOWDOHJURXSVSLYRWVDERXWZKLFKHYHQWVVRPHWLPHV
KLQJH
7KHKRPRVH[XDOVILQVWDQFH<XJRVDLG
7KH\UHDERXWRQHSHUFHQWRIWKHSRSXODWLRQDFRQVLVWHQWPLQRUYDULDQW
LQUHSURGXFWLYHVWUDWHJLHV+DULVDLG
6RFLDOO\WKRXJKWKH\ZHUHRIWHQPDVWHUVRILPSURYLVDWLRQIDVKLRQLQJ
VW\OHWRVXEVWDQFHIXOO\DWKRPHZLWKWKHDUELWUDU\7KH\VHHPHGHTXLSSHG

ZLWKDQLQWHUQDOFRPSDVVWKDWSRLQWHGWKHPDWHYHU\VRFLDOQRYHOW\HDUO\RQ
VRWKDWWKH\H[HUWHGOHYHUDJHDOORXWRISURSRUWLRQWRWKHLUQXPEHUV2IWHQ
WKH\ZHUHVHQVLWLYHLQGLFDWRUVRIIXWXUHWXUQV
<XJRZHQWRQ6RZHILJXUHGFRXOGWKH\EHDFUXFLDOLQGLFDWRU"7XUQV
RXWWKH\DUH+HOSVRXWWKHHTXDWLRQV
'RUVVDLGVHYHUHO\:K\GRHVKLVWRU\VPRRWKRXW"
+DULOHW<XJRFDUU\WKHEDOO<VHHWKDWVDPHVSDUURZHIIHFWKDGD
SRVLWLYHVLGH&KDRWLFV\VWHPVFRXOGEHFDXJKWDWMXVWWKHULJKWLQVWDQW
WLOWHGHYHUVRVOLJKWO\LQDSUHIHUUHGZD\$ZHOOWLPHGQXGJHFRXOGGULYHD
V\VWHP\LHOGLQJEHQHILWVDOORXWRISURSRUWLRQWRWKHHIIRUWH[SHQGHG
<RXPHDQFRQWURO"6KHORRNHGGRXEWIXO
-XVWDWRXFK<XJRVDLG0LQLPDOFRQWUROWKHULJKWQXGJHDWWKH
ULJKWWLPHGHPDQGVWKDWWKHG\QDPLFVEHLQWULFDWHO\XQGHUVWRRG0D\EHWKDW
ZD\\RXFRXOGELDVRXWFRPHVWRZDUGWKHOHDVWGDPDJLQJRIVHYHUDOILQHO\
EDODQFHGUHVXOWV$WEHVWWKH\FRXOGGULYHWKHV\VWHPLQWRVWDUWOLQJO\JRRG
RXWFRPHV
:KRVFRQWUROOLQJ"'RUVDVNHG
<XJRORRNHGHPEDUUDVVHG 2KZHGXQQR
'RQWNQRZ"%XWWKLVLVDWKHRU\RIDOOKLVWRU\
+DULVDLGTXLHWO\7KHUHDUHHOHPHQWVLQWHUSOD\VLQWKHHTXDWLRQV
WKDWZHGRQWJUDVS'DPSLQJIRUFHV
+RZFDQ\RXQRWXQGHUVWDQG"
%RWKPHQORRNHGLOODWHDVH:HGRQWNQRZKRZWKHWHUPVLQWHUDFW1HZ
IHDWXUHV+DULVDLGOHDGLQJWRHPHUJHQWRUGHU
6KHVDLGSULPO\7KHQ\RXGRQWUHDOO\KDYHDWKHRU\GR\RX"
+DULQRGGHGUXHIXOO\1RWLQWKHVHQVHRIDGHHSXQGHUVWDQGLQJQR
0RGHOVIROORZHGWKHJULWW\H[SHULHQFHGZRUOGKHUHIOHFWHG7KH\HFKRHG
WKHLUWLPHV&ORFNZRUNSODQHWDU\PHFKDQLFVFDPHDIWHUFORFNV7KHLGHDRIWKH
ZKROHXQLYHUVHDVDFRPSXWDWLRQFDPHDIWHUFRPSXWHUV$ZRUOGYLHZRIVWDEOH
FKDQJHFDPHDIWHUQRQOLQHDUG\QDPLFV
+HKDGDJOLPPHULQJRIDPHWDPRGHOZKLFKZRXOGORRNDWKLPDQGGHVFULEH
KRZKHZRXOGWKHQVHOHFWDPRQJPRGHOVIRUSV\FKRKLVWRU\3HHULQJGRZQIURP
DERYHLWFRXOGVHHZKLFKZDVOLNHO\WREHIDYRUHGE\+DUL6HOGRQ
:KRSODQVWKLVFRQWURO"'RUVSHUVLVWHG
+DULFDXJKWDWWKHLGHDKHKDGEXWLWVOLSSHGDZD\+HNQHZKRZWRFRD[
LWEDFNHDVHXS5HPHPEHUWKDWMRNH"KHVDLG+RZGR\RXPDNH*RGODXJK"
6KHVPLOHG<RXWHOOKLP\RXUSODQV
5LJKW:HZLOOVWXG\WKLVUHVXOWVQLIIRXWDQDQVZHU
6KHVPLOHG'RQWDVN\RXIRUSUHGLFWLRQVDERXWWKHSURJUHVVRI\RXU
RZQSUHGLFWLRQV"
(PEDUUDVVLQJEXW\HV
+LVGHVNVHFFKLPHG$Q,PSHULDOVXPPRQVLWDQQRXQFHG
'DPQ+DULVODSSHGKLVFKDLU)XQVRYHU


1RWTXLWHWLPHIRUWKH6SHFLDOVWRDUULYH+DULWKRXJKW%XWJHWWLQJDQ\
ZRUNGRQHZDVLPSRVVLEOHZKLOHKHZDVRQHGJH
+HMLJJOHGFRLQVLQKLVSRFNHWGLVWUDFWHGWKHQILVKHGRQHRXW$ILYH
FUHGSLHFHDPEHUDOOR\DKDQGVRPH&OHRQ,KHDGRQRQHVLGHWUHDVXULHVDOZD\V
IODWWHUHGHPSHURUVDQGWKHGLVNRIWKH*DOD[\VHHQIURPDERYHRQWKHRWKHU
+HKHOGLWRQHGJHDQGWKRXJKW
/HWWKHFRLQVZLGWKUHSUHVHQWWKHGLVNVW\SLFDOVFDOHKHLJKW7REH
FRUUHFWWKHFRLQZRXOGKDYHWREXOJHDWLWVFHQWHUWRGHSLFWWKHKXEEXW
RYHUDOOLWZDVDJRRGJHRPHWULFUHSOLFD
,QWKHGLVNZDVDIODZDPLQXWHEOLVWHULQDQRXWHUVSLUDODUP+HGLG
WKHUDWLRLQKLVKHDGDOORZLQJWKDWWKHJDOD[\ZDVDERXWOLJKW\HDUV

DFURVVDQGEOLQNHG7KHVSHFNSRUWUD\HGDYROXPHDERXWDWKRXVDQGOLJKW
\HDUVDFURVV,QWKHRXWHUDUPVWKDWZRXOGFRQWDLQWHQPLOOLRQVWDUV
7RVHHVRPDQ\ZRUOGVDVDIOHFNDGULIWLQLPPHQVLW\PDGHKLPIHHODV
WKRXJK7UDQWRUVVROLGLW\KDGRSHQHGDQGKHKDGSOXQJHGKHOSOHVVO\LQWRDQ
DE\VV
&RXOGKXPDQLW\PDWWHURQVXFKDVFDOH"6RPDQ\ELOOLRQVRIVRXOVSDFNHG
LQWRDJUDLQ\GRW
<HWWKH\KDGVSDQQHGWKHZKROHLQFRPSUHKHQVLEOHH[SDQVHRIWKDWGLVNLQ
DWZLQNOLQJ
+XPDQLW\KDGVSUHDGWKURXJKWKHVSLUDODUPVVSLOOLQJWKURXJKWKH
ZRUPKROHVZUDSSLQJLWVHOIDURXQGWKHKXELQDPHUHIHZWKRXVDQG\HDUV,Q
WKDWWLPHWKHVSLUDODUPVWKHPVHOYHVKDGQRWUHYROYHGDSHUFHSWLEOHDQJOHLQ
WKHLURZQJUDYLGJDYRWWHWKDWZRXOGWDNHKDOIDELOOLRQ\HDUV+XPDQ
KDQNHULQJIRUIDUKRUL]RQVKDGVHQWWKHPVZDUPLQJWKURXJKWKHZRUPKROH
ZHEELQJSRSSLQJRXWLQWRVSDFHVQHDUVXQVRIVZHOOLQJUHGYLUXOHQWEOXH
VPROGHULQJUXE\
7KHVSHFNVWRRGIRUDYROXPHDVLQJOHKXPDQEUDLQZLWKLWVSULPDWH
FDSDFLWLHVFRXOGQRWJUDVSH[FHSWDVPDWKHPDWLFDOQRWDWLRQ%XWWKDWVDPH
EUDLQOHGKXPDQVRXWZDUGXQWLOWKH\QRZVWURGHWKH*DOD[\PDVWHULQJWKH
VWDUOLWDE\VVZLWKRXWWUXO\NQRZLQJWKHPVHOYHV
6RDVLQJOHKXPDQFRXOGQRWIDWKRPHYHQDGRWLQWKHGLVN%XWWKHVXP
RIKXPDQLW\FRXOGLQFUHPHQWDOO\RQHPLQGDWDWLPHNQRZLQJLWVRZQ
LPPHGLDWHVWDUU\WHUULWRU\
$QGZKDWGLGKHGHVLUH"7RFRPSUHKHQGDOORIWKDWKXPDQLW\LWVGHHSHVW
LPSXOVHVLWVVKDGRZ\PHFKDQLVPVLWVSDVWSUHVHQWDQGIXWXUH+HZDQWHGWR
NQRZWKHYDJUDQWVSHFLHVWKDWKDGPDQDJHGWRVFRRSXSWKLVGLVNDQGWRPDNH
LWDSOD\WKLQJ
6RPD\EHRQHVLQJOHKXPDQPLQGFRXOGLQGHHGJUDVSWKHGLVNE\JRLQJRQH
OHYHOKLJKHUDQGIDWKRPLQJWKHFROOHFWLYHHIIHFWVKLGGHQLQWKHLQWULFDFLHV
RIWKH(TXDWLRQV
'HVFULELQJ7UDQWRULQWKLVSURSRUWLRQZDVFKLOGVSOD\)RUWKH
(PSLUHKHQHHGHGDIDUJUDQGHUFRPSUHKHQVLRQ
0DWKHPDWLFVPLJKWUXOHWKHJDOD[\,QYLVLEOHJRVVDPHUV\PEROVFRXOG
JRYHUQ
6RDVLQJOHPDQRUZRPDQFRXOGPDWWHU
0D\EH+HVKRRNKLVKHDG$VLQJOHKXPDQKHDG
*HWWLQJDOLWWOHDKHDGRIRXUVHOYHVDUHQWZH"'UHDPVRIJRGKRRG
%DFNWRZRUN
2QO\KHFRXOGQWZRUN+HKDGWRZDLW7RKLVUHOLHIWKH,PSHULDO
6SHFLDOVDUULYHGDQGHVFRUWHGKLPDFURVV6WUHHOLQJ8QLYHUVLW\%\QRZKHZDV
XVHGWRWKHJDZNHUVWKHHPEDUUDVVPHQWRISORZLQJWKURXJKWKHFURZGVZKLFKQRZ
DFFXPXODWHGHYHU\ZKHUHLWVHHPHGWKDWKHPLJKWIUHTXHQW
%XV\WRGD\KHVDLGWRWKH6SHFLDOVFDSWDLQ
*RWWRH[SHFWLWVLU
<RXJHWH[WUDGXW\SD\IRUWKLV,KRSH
<HVVLU'LJVZHFDOOWKHP
)RU H[WUDULVNFRUUHFW"'DQJHURXVGXW\
7KHFDSWDLQORRNHGIOXVWHUHG:HOO\HVVLU
,IVRPHRQHVWDUWVVKRRWLQJZKDWDUH\RXURUGHUV"
8KLIWKH\FDQSHQHWUDWHWKHHQJDJLQJSHULPHWHUZHUHWRJHWEHWZHHQ
WKHPDQG\RX6LU
$QG\RXGGRWKDW"7DNHDJDXVVSXOVHRUDIOHFKHWWH"
+HVHHPHGVXUSULVHG2IFRXUVH
7UXO\"
2XUGXW\\NQRZ
+DULZDVKXPEOHGE\WKHPDQVVLPSOHOR\DOW\1RWWR+DUL6HOGRQEXWWR
WKHLGHDRI(PSLUH2UGHU&LYLOL]DWLRQ

$QG+DULUHDOL]HGWKDWKHWRRZDVGHYRWHGWRWKDWLGHD7KH(PSLUHKDG
WREHVDYHGRUDWOHDVWLWVGHFOLQHPLWLJDWHG2QO\E\IDWKRPLQJLWVGHHS
VWUXFWXUHFRXOGKHGRWKDW
:KLFKZDVZK\KHGLVOLNHGWKH)LUVW0LQLVWHUEXVLQHVV,WUREEHGKLPRI
WLPHFRQFHQWUDWLRQ
,QWKH 6SHFLDOVDUPRUHGSRGVKHVDOYHGKLVGLVFRQWHQWE\SXOOLQJRXW
KLVWDEOHWDQGZRUNLQJRQVRPHHTXDWLRQV7KHFDSWDLQKDGWRUHPLQGKLPZKHQ
WKH\UHDFKHGWKHSDODFHJURXQGV+DULJRWRXWDQGWKHUHZDVWKHXVXDOVHFXULW\
ULWXDOWKH6SHFLDOVVSUHDGLQJRXWDQGDLUERUQHVHQVRUVJRLQJDORIWWRVQLII
RXWWKHIDUSHULPHWHU7KH\UHPLQGHGKLPRIJROGHQEHHVEX]]LQJZLWK
YLJLODQFH
+HZDONHGE\DZDOOOHDGLQJLQWRWKHSDODFHJDUGHQVDQGDWDQURXQG
VKHHWWKHVL]HRIKLVILQJHUQDLOSRSSHGRIIWKHZDOO,WVWXFNWRKLVQHFN+H
UHDFKHGXSDQGSOXFNHGLWRII
+HUHFRJQL]HGLWDVDSURPRWLRQDOWULQNHWDVODSRQSDWFKZKLFKJDYH
\RXDSOHDVDQWUXVKE\GLIIXVLQJHQGRUSKLQVLQWR\RXUEORRGVWUHDP,WDOVR
VXEWO\SUHGLVSRVHG\RXWRFRKHUHQWVLJQDOVLQFRUULGRUDGYHUWLVHPHQWV
+HSLWFKHGLWDVLGH$6SHFLDOJUDEEHGDWWKHSDWFKDQGVXGGHQO\WKHUH
ZDVVKRXWLQJDQGPRYHPHQWDOODURXQGKLP7KH6SHFLDOWXUQHGWRWKURZWKH
SDWFKDZD\
$QRUDQJHVSLNHVKRWWKURXJKWKHJXDUGVKDQGKLVVLQJKRWIODULQJDQG
JRQHLQDVHFRQG7KHPDQFULHG$KDQGDQRWKHU6SHFLDOJUDEEHGKLPDQG
SXVKHGKLPGRZQ7KHQILYH6SHFLDOVEORFNHG+DULIURPDOOVLGHVDQGKHVDZQR
PRUH
7KH6SHFLDOVFUHDPHGKRUULEO\6RPHWKLQJFXWRIIWKHZDLORISDLQ7KH
FDSWDLQVKRXWHG0RYHDQG+DULKDGWRWURWZLWKWKH6SHFLDOVDURXQGKLP
LQWRWKHJDUGHQVDQGGRZQVHYHUDOODQHV
,WWRRNDZKLOHWRVWUDLJKWHQRXWWKHLQFLGHQW7KHSDWFKZDV
XQWUDFHDEOHRIFRXUVHDQGWKHUHZDVQRZD\RINQRZLQJIRUVXUHZKHWKHULW
ZDVWDUJHWHGRQ+DULDWDOO
&RXOGEHSDUWRIVRPH3DODFHSORWWKHFDSWDLQVDLG-XVWZDLWLQJIRU
WKHQH[WSDVVHUE\ZLWKDVFHQWVLJQDWXUHOLNH\RXUV
1RWDLPHGIRUPHDWDOO"
&RXOGEH7KDWWDEWRRNFRXSOHH[WUDVHFRQGVWU\LQWRILJXUHRXWLILW
ZDQWHG\RXRUQRW
$QGLWGLG
%RG\RGRUVNLQVPHOOVWKH\UHQRWH[DFWVLU
,OOKDYHWRVWDUWZHDULQJSHUIXPH
7KHFDSWDLQJULQQHG7KDWZRQWVWRSDVPDUWWDE
2WKHUSURWHFWLRQVSHFLDOLVWVUXVKHGLQDQGWKHUHZDVHYLGHQFHWRPHDVXUH
DQGRSLQLRQVDQGDORWRIWDON +DULLQVLVWHGRQZDONLQJEDFNWRVHHWKH
6SHFLDOZKRKDGWDNHQWKHWDE+HZDVJRQHDOUHDG\RIIWRHPHUJHQF\FDUH
WKH\VDLGKHZRXOGORVHKLVKDQG1RVRUU\+DULFRXOGQRWVHHKLP6HFXULW\
\NQRZ
4XLWHTXLFNO\+DULEHFDPHERUHGZLWKWKHDIWHUPDWK+HKDGFRPHHDUO\WR
JHWDVWUROOWKURXJKWKHJDUGHQVDQGWKRXJKKHNQHZKHZDVEHLQJLUUDWLRQDO
KLVUHJUHWDWPLVVLQJWKHZDONORRPHGODUJHUWKDQWKHDVVDVVLQDWLRQDWWHPSW
+DULWRRNDORQJVWLOOPRPHQWDQGPRYHGWKHLQFLGHQWDVLGH+H
YLVXDOL]HGDGLVSODFHPHQWRSHUDWRUDQLF\EOXHYHFWRUIUDPH,WOLVWHGWKH
VQDUOHGDQJU\UHGNQRWDQGSXVKHGLWRXWRIYLHZ/DWHUKHZRXOGGHDOZLWK
LWODWHU
+HFXWRIIWKHHQGOHVVWDONDQGRUGHUHGWKH6SHFLDOVWRIDOOLQEHKLQG
KLP6KRXWHGSURWHVWVFDPHRIFRXUVHZKLFKKHLJQRUHG7KHQKHDPEOHGDFURVV
WKHJDUGHQVUHOLVKLQJWKHRSHQDLU+HLQKDOHGHDJHUO\7KHEOLQGLQJVSHHGRI
WKHDWWDFNKDGHUDVHGLWVLPSRUWDQFHWRKLP)RUQRZ
7KHSDODFHWRZHUVORRPHGOLNHZHEZRUNRIDJLDQWVSLGHU%HWZHHQWKHLU
EXONVZHDYHGDLU\ZDONZD\V6SLUHVZHUHYHLOHGLQVLOYHU\PLVWDQGDULSSOH

DSXOVHVKLPPHULQJZLWKDVLOHQWVWHDG\EHDWOLNHDJUHDWXQVHHQKHDUW+H
KDGEHHQVRORQJLQWKHIRUHVKRUWHQHGYLHZVRI7UDQWRUVFRUULGRUVKLVH\HV
GLGQRWTXLFNO\JUDVSWKHSX]]OLQJSHUVSHFWLYHV
$QXSZDUGUXVKFDXJKWKLVDWWHQWLRQDVKHSDVVHGWKURXJKDIORZHUVFDSH
)URPWKHLPPHQVH,PSHULDODYLDU\IORFNVRIELUGVLQWKHWKRXVDQGVRVFLOODWHG
LQWKHYHUWLFDOGUDIWV7KHLUDUWIXOHYHUVKLIWLQJSDWWHUQVKDGDGLDSKDQRXV
ELOORZ\TXDOLW\DQLPPHQVHZLVS\GDQFH
<HWWKHVHKDGEHHQVKDSHGPDQ\PLOOHQQLDDJRE\ELRHQJLQHHULQJWKHLU
JHQRPH7KH\IRUPHGGULIWVDQGELOORZVOLNHFORXGVRUHYHQDLU\PRXQWDLQV
IHDVWLQJRQXSZHOOLQJJQDWVUHOHDVHGIURPEHORZE\WKHJDUGHQHUV%XWDVLGH
GUDIWFRXOGGLVVROYHDOOWKHLURUQDWHVFXOSWXUHVEORZWKHPDZD\
/LNHWKH(PSLUHKHPXVHG%HDXWLIXOLQLWVRUGHUVWDEOHIRUILIWHHQ
PLOOHQQLD\HWQRZWRSSOLQJ&UDFNLQJXSOLNHDVORZPRWLRQSRGZUHFN2ULQ
VSDVPVOLNHWKH-XQLQULRWV
:K\"(YHQDPRQJ,PSHULDOORYHOLQHVVKLVPDWKLVWPLQGUHWXUQHGWRWKH
SUREOHP
(QWHULQJWKHSDODFHKHSDVVHGDGHOHJDWLRQRIFKLOGUHQRQWKHLUZD\WR
VRPHDXGLHQFHZLWKDOHVVHU,PSHULDOILJXUH:LWKDVXGGHQSDQJKHPLVVHGKLV
DGRSWHGVRQ5D\FK+HDQG'RUVKDGGHFLGHGWRVHFUHWO\VHQGWKHER\DZD\WR
VFKRRODIWHU<XJRKDGKLVOHJEURNHQ'HSULYHWKHPRIWDUJHWV'RUVKDG
VDLG
$PRQJWKHPHULWRFUDF\RQO\WKRVHDGXOWVZLWKFRPPLWPHQWVWDELOLW\DQG
WDOHQWFRXOGKDYHFKLOGUHQ*HQWU\RUSODLQFLWL]HQVFRXOGZKHOSEUDWVE\ WKH
VKRYHOIXO
3DUHQWVZHUHOLNHDUWLVWVVSHFLDOSHRSOHZLWKDVSHFLDOJLIWJLYHQ
UHVSHFWDQGSULYLOHJHVOHIWIUHHWRFUHDWHKDSS\DQGFRPSHWHQWKXPDQV,WZDV
QREOHZRUNZHOOSDLG+DULKDGEHHQKRQRUHGWREHDSSURYHG
,QLPPHGLDWHFRQWUDVWWKUHHRGGO\VKDSHGFRXUWLHUVDPEOHGE\KLP
%\ELRWHFKPHDQVSHRSOHFRXOGWXUQWKHLUFKLOGUHQLQWRVSLQGO\WRZHUV
LQWRIORZHUOLNHIRRWERXQGGZDUYHVLQWRJUHHQJLDQWVRUSLQNS\JPLHV)URP
WKURXJKRXWWKH*DOD[\WKH\ZHUHVHQWKHUHWRDPXVHWKH,PSHULDOFRXUWZKHUH
QRYHOW\ZDVDOZD\VLQYRJXH
%XWVXFKYDULDQWVVHOGRPODVWHG7KHUHZDVDVSHFLHVQRUP$QG
VWUHWFKLQJLWZDVMXVWDVGHHSO\LQJUDLQHG+DULKDGWRDGPLWWKDWKHZRXOG
IRUHYHUEHDPRQJWKHXQVRSKLVWLFDWHGIRUKHIRXQGVXFKIRONUHSXOVLYH
6RPHRQHKDGGHVLJQHGWKHUHFHSWLRQURRPWRORRNOLNHDQ\WKLQJEXWDURRP
IRUUHFHLYLQJSHRSOH,WUHVHPEOHGDOXPS\SRFNHWLQPROWHQJODVV
FULVVFURVVHGE\SROLVKHGVKDIWVRIFHUDPRVWHHO7KHVHVKDIWVLQWXUQGULSSHG
LQWRVPRRWKOXPSVZKLFKVLQFHWKHUHZDVQRWKLQJHOVHLQWKHURRPPXVWKDYH
EHHQLQWHQGHGWREHFKDLUVDQGWDEOHV
,WVHHPHGXQOLNHO\WKDWKHFRXOGHYHUJHWEDFNRXWRIDQ\RIWKHVKDSHV
RQFHKHKDGZRUNHGRXWKRZWRVLWLQWKHPVR+DULVWRRG$QGZRQGHUHGLIWKDW
HIIHFWWRRZDVVRPHKRZLQWHQGHG7KHSDODFHZDVDVXEWOHSODFHRIOD\HUHG
GHVLJQ
7KLVZDVWREHDVPDOOSULYDWHPHHWLQJ&OHRQVVWDIIKDGDVVXUHGKLP
6WLOOWKHUHZDVDVPDOODUP\RIDWWDFKHVDQGSURWRFRORIILFHUVDQGDLGHVZKR
KDGLQWURGXFHGWKHPVHOYHVDV+DULKDGSDVVHGWKURXJKVHYHUDOURRPVRI
LQFUHDVLQJRUQDPHQWDWLRQRQKLVZD\KHUH7KHLUWDONEHFDPHPRUHRUQDWHDV
ZHOO&RXUWO\OLIHZDVGRPLQDWHGE\SXIIHGXSSHRSOHZKRDOZD\VDFWHGDV
WKRXJKWKH\ZHUHFR\O\XQYHLOLQJVWDWXHVRIWKHPVHOYHV
7KHUHZDVDORWRIDGRUQPHQWDQGILQHU\WKHDUFKLWHFWXUDOHTXLYDOHQWRI
MHZHOVDQGVLONDQGHYHQWKHPRVWPLQRUDWWHQGDQWVZRUHYHU\GLJQLILHGJUHHQ
XQLIRUPV+HIHOWDVWKRXJKKHVKRXOGORZHUKLVYRLFHDQGUHDOL]HGUHFDOOLQJ
6XQGD\VRQ+HOLFRQWKDWWKLVSODFHIHOWVRPHKRZOLNHDFKXUFK
7KHQ&OHRQVZHSWLQDQGWKHVWDIIYDQLVKHGVLOHQWO\GUDLQLQJDZD\LQWR
FRQFHDOHGH[LWV
0\6HOGRQ

<RXUVVLUH+DULIROORZHGWKHULWXDO
7KH(PSHURUFRQWLQXHGJUHHWLQJKLPHIIXVLYHO\WXWWXWWLQJRYHUWKH
DSSDUHQWDVVDVVLQDWLRQDWWHPSW6XUHO\DQDFFLGHQWGRQW\RXWKLQN"DQG
OHGKLPWRWKHODUJHGLVSOD\ZDOO$W&OHRQVJHVWXUHDQHQRUPRXVYLHZRIWKH
HQWLUH*DOD[\DSSHDUHGWKHZRUNRIDQHZDUWLVW+DULPXUPXUHGWKHUHTXLUHG
DGPLUDWLRQDQGUHFDOOHGKLVWKRXJKWVRIRQO\DQKRXUEHIRUH
7KLVZDVDWLPHVFXOSWXUHWUDFLQJWKHHQWLUH*DODFWLFKLVWRU\7KHGLVN
ZDVDIWHUDOODFROOHFWLRQRIGHEULVVZLUOLQJDWWKHERWWRPRID
JUDYLWDWLRQDOSRWKROHLQWKHFRVPRV+RZLWORRNHGGHSHQGHGRQZKLFKRI
PDQNLQGVP\ULDGH\HVRQHXVHG,QIUDUHGFRXOGSLHUFHDQGXQPDVNGXVW\ODQHV
;UD\VVRXJKWSRROVRIILHUFHO\EXUQLQJJDV5DGLRGLVKHVPDSSHGFROGEDQNVRI
PROHFXOHVDQGPDJQHWL]HGSODVPD$OOZHUHSDFNHGZLWKPHDQLQJ
,QWKHFDURXVHORIWKHGLVNVWDUVEREEHGDQGZHDYHGXQGHUFRPSOLFDWHG
1HZWRQLDQWXJV7KHPDMRUDUPV6DJLWWDULXV2ULRQDQG3HUVHXVFRXQWLQJ
RXWZDUGIURPWKH&HQWHUERUHQDPHVREVFXUHGE\DQWLTXLW\(DFKFRQWDLQHGD
=RQHRIWKDWQDPHKLQWLQJWKDWSHUKDSVKHUHWKHDQFLHQW(DUWKRUELWHG%XWQR
RQHNQHZDQGUHVHDUFKKDGUHYHDOHGQRREYLRXVVLQJOHFDQGLGDWH,QVWHDG
GR]HQVRIZRUOGVYLHGIRUWKHWLWOHRIWKH7UXH(DUWK4XLWHSUREDEO\QRQHRI
WKHPZHUH
0DQ\EULJKWVLJQDWXUHVVN\PDUNVOLNHODQGPDUNV"EOD]HGDPRQJWKH
FXUYLQJEDUUHGVSLUDODUPV%HDXW\EH\RQG GHVFULSWLRQEXWQRWEH\RQG
DQDO\VLV+DULWKRXJKWZKHWKHUSK\VLFDORUVRFLDO,IKHFRXOGILQGWKH
NH\
,FRQJUDWXODWH\RXRQWKHVXFFHVVRIP\0RURQ'HFUHH&OHRQVDLG
+DULVORZO\ZLWKGUHZIURPWKHLPPHQVHSHUVSHFWLYH2KVLUH"
<RXULGHDILUVWIUXLWRISV\FKRKLVWRU\7R+DULVEODQN
LQFRPSUHKHQVLRQ&OHRQFKXFNOHG)RUJRWWHQDOUHDG\"7KHUHQHJDGHVZKRSLOODJH
VHHNLQJUHQRZQIRUWKHLULQIDP\<RXDGYLVHGPHWRVWULSWKHPRIWKHLU
LGHQWLW\E\PDNLQJWKHPKHQFHIRUWKEHFDOOHG0RURQV
+DULKDGLQGHHGIRUJRWWHQWKHDGYLFHEXWFRQWHQWHGKLPVHOIZLWKDVDJH
QRG
,WZRUNHG6XFKFULPHVDUHPXFKUHGXFHG$QGWKRVHFRQYLFWHGJRWR
WKHLUGHDWKVIXOORIDQJHUGHPDQGLQJWREHPDGHIDPRXV,WHOO\RXLWLV
GHOLFLRXV
+DULIHOWDFKLOODWWKHZD\WKH(PSHURUVPDFNHGKLVOLSV$QRIIKDQG
VXJJHVWLRQPDGHVXGGHQO\FRQFUHWHO\UHDO,WUDWWOHGKLPDELW
+HUHDOL]HGWKDWWKH(PSHURUZDVDVNLQJDERXWSURJUHVVZLWK
SV\FKRKLVWRU\+LVWKURDWWLJKWHQHGDQGKHUHPHPEHUHGWKH0RRQURVHZRPDQZLWK
KHULUULWDWLQJTXHVWLRQV7KDWVHHPHGZHHNVDJR:RUNLVVORZKHPDQDJHGWR
VD\
&OHRQVDLGV\PSDWKHWLFDOO\6XUHO\LWUHTXLUHVDGHHSNQRZOHGJHRI
HYHU\IDFHWRIFLYLOL]HGOLIH
$WWLPHV+DULVWDOOHGSXWWLQJKLVPL[HGHPRWLRQVILUPO\DZD\
,ZDVDWDFRQYRFDWLRQUHFHQWO\DQGOHDUQHGVRPHWKLQJ\RXXQGRXEWHGO\
KDYHIDFWRUHGLQWR\RXUHTXDWLRQV
<HVVLUH"
,WLVVDLGWKDWWKHYHU\IRXQGDWLRQRIWKH(PSLUHEHVLGHVWKH
ZRUPKROHVRIFRXUVHLVWKHGLVFRYHU\RISURWRQ%RURQIXVLRQ,KDGQHYHU
KHDUGRILW\HWWKHVSHDNHUVDLGLWZDVWKHVLQJOHJUHDWHVWDFKLHYHPHQWRI
DQWLTXLW\7KDWHYHU\VWDUVKLSHYHU\SODQHWDU\WHFKQRORJ\GHSHQGVXSRQLW
IRUSRZHU
,VXSSRVHWKDWLVWUXHEXW,GLGQRWNQRZLW
6XFKDQHOHPHQWDU\IDFW"
:KDWLVQRWRIXVHWRPHGRHVQRWFRQFHUQPH
&OHRQVPRXWKSRXWHGLQSX]]OHPHQW%XWDWKHRU\RIDOOKLVWRU\VXUHO\
GHPDQGVJUHDWGHWDLO
7HFKQRORJ\HQWHUVRQO\LQLWVHIIHFWVRQRWKHUODUJHLVVXHV+DUL

VDLG+RZWRH[SODLQWKHLQWULFDFLHVRIQRQOLQHDUFDOFXOXV"2IWHQLWV
OLPLWDWLRQVDUHWKHLPSRUWDQWSRLQW
$Q\WHFKQRORJ\GLVWLQJXLVKDEOHIURPPDJLFLVLQVXIILFLHQWO\DGYDQFHG
&OHRQVDLGDLULO\
:HOOSXWVLUH
<RXOLNHLW"7KDWIHOORZ'UDLXVJDYHLWWRPH,WKDVDULQJGRHVQW
LW"7UXH WRR3HUKDSV,OO+HEURNHRIIDQGVDLGWRWKHDLU
7UDQVFULSWLRQRIILFHU*LYHWKDWOLQHDERXWPDJLFWRWKH3UHVHSWKIRUJHQHUDO
GLVWULEXWLRQ
&OHRQVDWEDFN7KH\UHDOZD\VDIWHUPHIRU,PSHULDOZLVGRP$
ERWKHU
$IDLQWPXVLFDOQRWHDQQRXQFHG%HWDQ/DPXUN+DULVWLIIHQHGDWILUVW
VLJKWRIWKHPDQEXW/DPXUNKDGH\HVRQO\IRUWKH(PSHURUDVKHZHQWVPRRWKO\
WKURXJKDOLWDQ\RIFRXUWULWXDO$VDSULPHPHPEHURIWKH+LJK&RXQFLOKHKDG
WRUHFLWHVRPHWLPHKRQRUHGDQGHPSW\SKUDVHVERZZLWKDFXULRXVVZRRSDQG
QHYHUDYHUWKLVJD]HIURPWKH(PSHURU7KDWGRQHKHFRXOGUHOD[
3URIHVVRU6HOGRQ6RJRRGWRPHHWDJDLQ
+DULVKRRNKDQGVLQWKHIRUPDOPDQQHU6RUU\DERXWWKDWOLWWOHGXVWXS
,UHDOO\GLGQWNQRZWKH'ZDVWKHUH
1RPDWWHU2QHFDQWKHOSZKDWWKHPHGLDPDNHRIWKLQJV
0\6HOGRQJDYHPHH[FHOOHQWDGYLFHDERXWWKH0RURQ'HFUHH&OHRQVDLG
+HZHQWRQKLVGHOLJKWGHHSHQLQJWKHWZLVWRI/DPXUNVPRXWK
&OHRQOHGWKHPWROX[XULDQWFKDLUVWKDWSRSSHGRXWRIWKHZDOOV+DUL
IRXQGKLPVHOIVZHSWLPPHGLDWHO\LQWRDGHWDLOHGGLVFXVVLRQRI&RXQFLOPDWWHUV
5HVROXWLRQVPHDVXUHVRIDSSURSULDWLRQDEVWUDFWVRISURSRVHGOHJLVODWLRQ
7KLVVWXIIKDGEHHQIORZLQJWKURXJK+DULVRIILFHDVZHOO+HKDGGXWLIXOO\
VHWKLVDXWRVHFWRWH[WDQDO\]LQJLWEUHDNLQJWKHVHDRIMDUJRQGRZQLQWR
*DODFWLFDQGVPRRWKLQJRXWWKHFRQQHFWLRQV7KLVJRWKLPWKURXJKWKHILUVW
KRXU0RVWRIWKHPDWHULDOKHKDGLJQRUHGWLSSLQJSLOHVRIWREHVFDQQHG
GRFXPHQWVLQWRKLVUHF\FOHUZKHQQRERG\ZDVORRNLQJ
7KHDUFDQHZRUNLQJVRIWKH+LJK&RXQFLOZHUHQRWLQSULQFLSOHGLIILFXOW
WRIROORZWKH\ZHUHMXVWERULQJ$V/DPXUNGHIWO\FRQIHUUHGZLWKWKH(PSHURU
+DULZDWFKHGWKHPDVKHZRXOGZDWFKDERG\EDOOJDPHDFXULRXVSUDFWLFHQR
GRXEWIDVFLQDWLQJLQDQDUURZVRUWRIZD\
7KDWWKH&RXQFLOVHWJHQHUDOVWDQGDUGVDQGGLUHFWLRQVZKLOHEHORZWKHP
PHUHOHJDOPDYHQVZRUNHGRXWWKHGHWDLOVDQGSDVVHGOHJLVODWLRQGLGQRW
FKDQJHKLVEHPXVHGGLVLQWHUHVW3HRSOHVSHQWWKHLUOLYHVGRLQJVXFKWKLQJV
)RUWDFWLFVKHFDUHGOLWWOH(YHQPDQNLQGGLGQRWPDWWHU2QWKH
*DODFWLFFKHVVERDUGWKHSLHFHVZHUHWKHSKHQRPHQDRIKXPDQLW\WKHUXOHVRI
WKHJDPHZHUHWKHODZVRISV\FKRKLVWRU\7KHSOD\HURQWKHRWKHUVLGHZDV
KLGGHQSHUKDSVGLGQRWH[LVW
/DPXUNQHHGHGDQRSSRVLWHSOD\HUDULYDO6XEWO\+DULVDZWKDWKHZDV
WKHLQHYLWDEOHIRH
/DPXUNVFDUHHUKDGDLPHGKLPIRUWKH)LUVW0LQLVWHUVKLSDQGKHPHDQWWR
JHWLW$WHYHU\WXUQ/DPXUNFXUULHGIDYRUZLWKWKH(PSHURUDQGZDYHGDZD\
+DULVSRLQWVRIZKLFKWKHUHZHUH IHZ
+HGLGQRWGLUHFWO\FRXQWHU/DPXUNWKHPDQZDVDPDVWHU+HNHSWTXLHW
FRQILQLQJKLPVHOIWRDQRFFDVLRQDOH[SUHVVLYHO\ KHKRSHG UDLVHGH\HEURZ+H
KDGUDUHO\UHJUHWWHGNHHSLQJTXLHW
7KLV0DFUR0HVKWKLQJGR\RXIDYRULW"WKH(PSHURUDEUXSWO\DVNHG
+DUL
+HEDUHO\UHPHPEHUHGWKHLGHD,WZLOODOWHUWKH*DOD[\FRQVLGHUDEO\
KHVWDOOHG
3URGXFWLYHO\/DPXUNVODSSHGDWDEOH$OOWKHHFRQLQGLFDWRUVDUH
IDOOLQJ7KH0DFUR0HVKZLOOVSHHGXSLQIRIORZERRVWSURGXFWLYLW\
7KH(PSHURUVPRXWKWLOWHGZLWKGRXEW,PQRWDOWRJHWKHUKDSS\ZLWK
WKHLGHDRIOLQNLQJVRPDQ\VRHDVLO\

-XVWWKLQN/DPXUNSUHVVHGWKHQHZVTXHH]HUVZLOOOHWDQRUGLQDU\
SHUVRQLQVD\(TTXLV=RQHWDONHYHU\GD\ZLWKDIULHQGLQWKH)DU5HDFKHV
RUDQ\ZKHUHHOVH
7KH(PSHURUQRGGHGXQFHUWDLQO\+DUL":KDWGR\RXWKLQN"
,KDYHGRXEWVDVZHOO
/DPXUNZDYHGGLVPLVVLYHO\)DLOXUHRIQHUYH
,QFUHDVHGFRPPXQLFDWLRQPD\ZRUVHQWKH(PSLUHVFULVLV
/DPXUNVPRXWKWZLVWHGGHULVLYHO\1RQVHQVH&RQWUDU\WRHYHU\JRRG
H[HFXWLYHUXOH
7KH(PSLUHLVQWUXOHG+DULPDGHDKDOIERZWRWKH(PSHURUDODV
LWVOHWUXQ
0RUHQRQVHQVH:HLQWKH+LJK&RXQFLO
+HDUKLPRXW&OHRQVDLG+HGRHVQRWWDONYHU\PXFK
+DULVPLOHG0DQ\SHRSOHDUHJUDWHIXOIRUWKDWVLUH
1RREOLTXHDQVZHUVQRZ:KDWGRHV\RXUSV\FKRKLVWRU\WHOO\RXDERXW
KRZWKH(PSLUHUXQV"
,WLVPLOOLRQVRIFDVWOHVZHEEHGE\EULGJHV
&DVWOHV"&OHRQVIDPRXVQRVHURVHVNHSWLFDOO\
3ODQHWV7KH\KDYHORFDOFRQFHUQVDQGUXQWKHP VHOYHVDVWKH\OLNH7KH
(PSLUHGRHVQWWURXEOHLWVHOIRYHUVXFKGHWDLOVXQOHVVDZRUOGEHJLQVPDNLQJ
DJJUHVVLYHWURXEOH
7UXHHQRXJKDQGDVLWVKRXOGEH&OHRQVDLG$KDQG\RXUEULGJHV
DUHWKHZRUPKROHV
([DFWO\VLUH+DULGHOLEHUDWHO\DYRLGHGORRNLQJDW/DPXUNDQGIRFXVHG
RQWKH(PSHURUZKLOHVNHWFKLQJLQKLVYLVLRQ
3ODQHWVFRXOGKDYHDQ\QXPEHURIOHVVHUGXFKLHVZLWKGLVSXWHVDQGZDUV
DQGPLFURVWUXFWXUHJDORUH7KHSV\FKRKLVWRULFDOHTXDWLRQVVKRZHGWKDWQRQH
RI WKDWPDWWHUHG
:KDWGLGPDWWHUZDVWKDWSK\VLFDOUHVRXUFHVFRXOGQRWEHVKDUHGDPRQJ
LQGHILQLWHO\ODUJHQXPEHUVRISHRSOH(DFKVRODUV\VWHPZDVDILQLWHVWRUHRI
JRRGVDQGLQWKHHQGWKDWPHDQWORFDOKLHUDUFKLHVWRFRQWURODFFHVV
:RUPKROHVFRXOGFDUU\UDWKHUOLWWOHPDVVEHFDXVHWKHKROHVZHUHVHOGRP
PRUHWKDQWHQPHWHUVDFURVV0DVVLYHK\SHUVSDFHVKLSVFDUULHGKHDY\FDUJRHV
EXWWKH\ZHUHVORZHUDQGFXPEHUVRPH7KH\GLVWRUWHGVSDFHWLPHFRQWUDFWLQJLW
IRUHDQGH[SDQGLQJLWDIWPRYLQJDWVXSHUOLJKWVSHHGVLQWKH*DOD[\VIUDPH
EXWQRWLQLWVRZQ7UDGHDPRQJPRVWVWHOODUV\VWHPVZDVFRQVWUDLQHGWROLJKW
FRPSDFWH[SHQVLYHLWHPV6SLFHVIDVKLRQVWHFKQRORJ\QRWEXON\UDZ
PDWHULDOV
:RUPKROHVFRXOGDFFRPPRGDWHPRGXODWHGOLJKWEHDPVIDUPRUHHDVLO\7KH
ZRUPKROHFXUYDWXUHUHIUDFWHGEHDPVWKURXJKWRUHFHLYHUVDWWKHRWKHUPRXWK
'DWDIORZHGIUHHO\NQLWWLQJWRJHWKHUWKH*DOD[\
$QGLQIRUPDWLRQZDVWKHRSSRVLWHRIPDVV'DWDFRXOGEHPRYHG
FRPSUHVVHGDQGOHDNHGUHDGLO\WKURXJKFRSLHV,WZDVLQILQLWHO\VKDUHDEOH,W
EORVVRPHGOLNHIORZHUVLQHWHUQDOVSULQJIRUDVLQIRUPDWLRQZDVDSSOLHGWRD
SUREOHPWKHUHVXOWLQJVROXWLRQZDVQHZLQIRUPDWLRQ$QGLWZDVFKHDSPHDQLQJ
WKDWLWWRRNIHZPDVVUHVRXUFHVWRDFTXLUHLW,WVSUHIHUUHGPHGLXPZDVOLJKW
TXLWHOLWHUDOO\WKHODVHUEHDP
7KDWSURYLGHGHQRXJKFRPPXQLFDWLRQWRPDNHDQ(PSLUH%XWWKHRGGVRID
QDWLYHRIWKH3XLVVDQW=RQHHYHUYR\DJLQJWRWKH=DTXORW=RQHRUHYHQWRWKH
QH[WVWDUVLQFHE\ZRUPKROHWKH\DUHHTXLYDOHQWWULSVZHUHWLQ\+DULVDLG
6RHYHU\RQHRI\RXUFDVWOHVNHSWLWVHOILVRODWHGH[FHSWIRU
LQIRUPDWLRQIORZ&OHRQVDLGDEVRUEHG
%XWQRZWKH0DFUR0HVKZLOOLQFUHDVHWKHLQIRUPDWLRQWUDQVIHUUDWHD
WKRXVDQGIROGXVLQJWKHVHVTXHH]HUVWKDWFRPSUHVVLQIRUPDWLRQ
&OHRQSXUVHGKLVOLSVSX]]OHG:K\LVWKDWEDG"
,WVQRW/DPXUNVDLG%HWWHUGDWDPDNHVIRUEHWWHUGHFLVLRQV
HYHU\ERG\NQRZVWKDW

1RWQHFHVVDULO\+XPDQOLIHLVDYR\DJHRQDVHDRIPHDQLQJQRWDQHW
RILQIRUPDWLRQ:KDWZLOOPRVWSHRSOHJHWIURPDFORVHSHUVRQDOIORZRIGDWD"
'HWDFKHGIRUHLJQORJLF8SURRWHGGHWDLOV
:HFDQUXQWKLQJVEHWWHU/DPXUNLQVLVWHG&OHRQKHOGXSD ILQJHUDQG
/DPXUNFKRNHGRIIKLVQH[WZRUGV
+DULKHVLWDWHG/DPXUNKDGDSRLQWLQGHHG
7KHUHZHUHPDWKHPDWLFDOUHODWLRQVKLSVEHWZHHQWHFKQRORJ\FDSLWDO
DFFXPXODWLRQODERUEXWWKHPRVWLPSRUWDQWGULYHUSURYHGWREHNQRZOHGJH
$ERXWKDOIWKH(PSLUHVHFRQRPLFJURZWKFDPHIURPWKHLQFUHDVHLQWKHTXDOLW\
RILQIRUPDWLRQDVHPERGLHGLQEHWWHUPDFKLQHVDQGLPSURYHGVNLOOVOHDGLQJWR
HIILFLHQF\
7KDWZDVZKHUHWKH(PSLUHKDGIDOWHUHG7KHLQQRYDWLYHWKUXVWRIWKH
VFLHQFHVKDGVORZO\IDOWHUHG7KH,PSHULDOXQLYHUVLWLHVSURGXFHGILQH
HQJLQHHUVEXWQRLQYHQWRUV*UHDWVFKRODUVEXWIHZWUXHVFLHQWLVWV7KDW
IDFWRUHGLQWRWKHRWKHUWLGHVRIWLPH%XWVRPHWKLQJRWKHUWKDQGDWD
VWDUYDWLRQKDGPDGHWKDWKDSSHQDQGDV\HW+DULGLGQRWNQRZWKHFDXVH
%XW +DULVDZWKH(PSHURUZDYHULQJDQGSUHVVHGRQ0DQ\RQWKH+LJK
&RXQFLOVHHWKH0DFUR0HVKDVDQLQVWUXPHQWRIFRQWURO/HWPHSRLQWRXWDIHZ
IDFWVZHOONQRZQWR\RXVLUH
+DULZDVLQKLVIDYRULWHPRGHDRQHRQRQHOHFWXUH&OHRQOHDQHG
IRUZDUGH\HVQDUURZHG+DULVSXQKLPDWDOH
7RJHWEHWZHHQZRUOGV$DQG%KHVDLGRQHPLJKWKDYHWRWDNHDGR]HQ
ZRUPKROHMXPSVWKH:RUP1HVWZDVDQDVWURSK\VLFDOVXEZD\V\VWHPZLWKPDQ\
WUDQVIHUV
(DFKZRUPPRXWKLPSRVHGDGGHGIHHVDQGFKDUJHVRQHYHU\VKLSPHQW
&RQWURORIDQHQWLUHWUDGHURXWH\LHOGHGWKHPD[LPXPSURILW7KHVWUXJJOHIRU
FRQWUROZDVXQHQGLQJRIWHQYLROHQW)URPWKHYLHZSRLQWRIHFRQRPLFV
SROLWLFVDQGKLVWRULFDOPRPHQWXPZKLFKPHDQWDVRUWRILPSRVHGLQHUWLDRQ
HYHQWVDORFDOHPSLUHZKLFKFRQWUROOHGDZKROHFRQVWHOODWLRQRIQRGHVVKRXOG
EHVROLGHQGXULQJ
1RWVR7LPHDQGDJDLQUHJLRQDOVDWUDSLHVZHQWWRHVXS,WVHHPHG
QDWXUDOWRVTXHH]HHYHU\ZRUPSDVVDJHIRUWKHPD[LPXPIHHE\FRRUGLQDWLQJ
HYHU\ZRUPPRXWKWRRSWLPL]HWUDIILF%XWWKDWGHJUHHRIFRQWUROPDGHSHRSOH
UHVWLYH,QHODERUDWHO\FRQWUROOLQJWKHV\VWHPLQIRUPDWLRQIORZHGRQO\IURP
PDQDJHUVWRZDJHVODYHVZLWKOLWWOHIHHGEDFN
([WHQVLYHUHJXODWLRQGLGQRWGHOLYHUWKHEHVWEHQHILWV,QVWHDGLW
\LHOGHGVKRUWEODQNHWHFRQRPLHVZKHQWKHFROOHFWLYHVKRXOGHUVJRWFROGWKH
EODQNHWJRWSXOOHGXSWRFRYHUWKHPDQGVRWKHIHHWIUR]H2YHUFRQWURO
IDLOHG
6RWKH0DFUR0HVKLILWOHWVWKH+LJK&RXQFLOUHDOO\UXQWKLQJV
FRXOGGHFUHDVHHFRQRPLFYLWDOLW\
/DPXUNVPLOHG SDWURQL]LQJO\$EXQFKRIDEVWUDFWWKHRU\VLUH1RZ\RX
OLVWHQWRDQROGKDQGZKRVEHHQRQWKH&RXQFLODJRRGORQJWLPHQRZ
+DULDWWHQGHGWR/DPXUNVIDPRXVEDOPDQGZRQGHUHGZK\KHZDVERWKHULQJ
ZLWKWKLV+HKDGWRDGPLWWKDWWUDGLQJLGHDVZLWKWKH(PSHURUKDGDFHUWDLQ
TXDOLW\RIFDVXDODOPRVWVHQVXDOSRZHU:DWFKLQJDPDQZKRFRXOGGHVWUR\D
ZRUOGZLWKDJHVWXUHKDGDGHFLGHGDGUHQDOLQHHGJH
%XWKHGLGQWUHDOO\EHORQJKHUHHLWKHUE\WDOHQWRUGULYH7URWWLQJ
RXWKLVRZQYLHZVZDVDPXVLQJHYHU\SURIHVVRUVHFUHWO\WKLQNVWKDWZKDWWKH
ZRUOGQHHGVLVDJRRGVROLGOHFWXUHIURPKLPRIFRXUVH
%XWLQWKLVJDPHWKHSDZQVZHUHUHDO7KH0RURQ'HFUHHKDGXQQHUYHG
KLPHYHQWKRXJKKHVDZQRWKLQJPRUDOO\ZURQJZLWKLW
/LYHVKXQJLQWKHEDODQFHKHUHDPRQJWKHILQHU\$QGQRWMXVWWKHOLYHV
RIRWKHUV+HKDGWRUHPLQGKLPVHOIWKDWWKLVEHDPLQJFRQILGHQW/DPXUNDFURVV
IURPKLPZDVWKHREYLRXVVRXUFHRIWKHSDWFKZHDSRQZKLFKKDGQHDUO\NLOOHG
KLPMXVWKRXUVEHIRUH



+HHQWHUHGWKHLU DSDUWPHQWDQGZHQWVWUDLJKWWRWKHNLWFKHQ+HSXQFKHG
LQFRPPDQGVRQWKHDXWRVHUYHUDQGWKHQZHQWWRWKHUDQJHDQGEHJDQWRKHDWXS
VRPHRLO:KLOHLWZDUPHGKHFXWXSRQLRQVDQGJDUOLFDQGSXWWKHPLQWR
EURZQ+LVEHHUDUULYHGDQGKHRSHQHGRQHQRWERWKHULQJZLWKDJODVV
6RPHWKLQJVKDSSHQHG'RUVVDLG
:HKDGDILQHOLWWOHFKDW,H\HG/DPXUNKHH\HGPH
7KDWVQRWZK\\RXUVKRXOGHUVDUHKXQFKHGXS
8P%HWUD\HGE\P\H[SUHVVLYHERG\
6RKHWROGKHUDERXWWKHSRVVLEOHDVVDVVLQDWLRQDWWHPSW
$IWHUVKHKDGFDOPHGGRZQVKHVDLGWLJKWO\<RXDOVRKHDUGDERXWWKH
VPRNHDUWLVW"
$WWKDWUHFHSWLRQ"+HPDGHWKHELJFORXGWKDWORRNHGOLNHPH"
+HGLHGWRGD\
+RZ"
/RRNVOLNHDQDFFLGHQW
7RREDGKHZDVIXQQ\
7RRIXQQ\+HPDGHWKHFDUWRRQRI/DPXUNUHPHPEHU"0DGH/DPXUNORRN
OLNHDEORZKDUG,WZDVWKHKLWRIWKHUHFHSWLRQ
+DULEOLQNHG<RXGRQW
4XLWHRUGHUO\ERWKRI\RXLQRQHGD\
6RLWFRXOGEH/DPXUN
'RUVVDLGJULPO\0\GHDU+DULDOZD\VWKLQNLQJLQWHUPVRI
SUREDELOLWLHV
$IWHUKLVDXGLHQFHZLWK&OHRQ+DULKDGVDWWKURXJKDVWULFWWDONE\WKH
KHDGRISDODFHVHFXULW\+LV6SHFLDOVVTXDGZDVGRXEOHG0RUHPLGJHWIO\HUV
IRUIRUZDUGSHULPHWHUZDUQLQJ2K\HVDQGKHZDVQRWWRZDONFORVHWRDQ\
ZDOOV
7KLVODVWELWKDGPDGH+DULFKXFNOHZKLFKGLGQRWLPSURYHWKHSDODFH
VWDIIVDWWLWXGH:RUVH+DULNQHZWKDWKHVWLOOKDGEDJJDJHWRXQSDFN+RZWR
NHHSWKHPIURPVQLIILQJRXW'RUVWUXHQDWXUH"
7KHDXWRVHUYHUUDQJ+HVDWDQGIRUNHGXSGDUNPHDWDQGRQLRQVDQGWKHQ
RSHQHGDQRWKHUERWWOHRIWKHFROGEHHUDQGKHOGLWLQRQHKDQGZKLOHKHDWH
ZLWKWKHRWKHU
$KDUGGD\VZRUN'RUVVDLG
,DOZD\VHDWKHDUWLO\DIWHUQDUURZO\DYHUWLQJGHDWK,WVDQROGIDPLO\
WUDGLWLRQ
, VHH
&OHRQHQGHGXSE\FRPPHQWLQJRQWKHLPSDVVHLQWKH+LJK&RXQFLO8QWLO
WKDWVUHVROYHGQRYRWHRQWKH)LUVW0LQLVWHUFDQRFFXU
6R\RXDQG/DPXUNDUHVWLOOEXWWLQJKHDGV
+HVEXWWLQJ0H,PGRGJLQJ
,ZLOOQHYHUOHDYH\RXUVLGHDJDLQVKHVDLGILUPO\
,WVDGHDO&RXOG\RXJHWPHVRPHWKLQJPRUHIURPWKHDXWRVHUYHU"
6RPHWKLQJZDUPDQGKHDY\DQGIXOORIWKLQJVWKDWDUHEDGIRUPH"
6KHZHQWLQWRWKHNLWFKHQDQGKHDWHVWHDGLO\DQGGUDQNWKHEHHUDQGGLG
QRWWKLQNDERXWDQ\WKLQJ
6KHEURXJKWEDFNVRPHWKLQJVWHDPLQJLQDULFKEURZQVDXFH+HDWHLW
ZLWKRXWDVNLQJZKDWLWZDV
<RXDUHDQRGGPDQSURIHVVRU
7KLQJVJHWWRPHDELWODWHUWKDQRWKHUSHRSOH
<RXOHDUQHGKRZWRGHOD\WKLQNLQJDERXWWKHPUHDFWLQJWRWKHPXQWLO
WKHUHZDVDWLPHDQGDSODFH
+HEOLQNHGDQGGUDQNVRPHPRUHEHHU&RXOGEH+DYHWRWKLQNDERXWLW
<RXHDJHUO\HDWZRUNLQJFODVVIRRG$QGZKHUHGLG\RXOHDUQWKLVWULFN
RIGHIHUULQJUHDFWLRQV"

8P<RXWHOOPH
+HOLFRQ
+HWKRXJKWDERXWWKDW8UQWKHZRUNLQJFODVV0\IDWKHUJRWLQWR
WURXEOHDQGWKHUHZHUHSOHQW\RIKDUGWLPHV$ERXWWKHRQO\EUHDN,JRWDVD
ER\ZDVQRWJHWWLQJEUDLQIHYHU:HFRXOGQWKDYHDIIRUGHGDQ\KRVSLWDOWLPH
,VHH)LQDQFLDOWURXEOH,UHPHPEHU\RXVD\LQJ
)LQDQFLDODQGWKHQSHRSOHPXVFOLQJKLPWRVHOOKLVODQG+HGLGQWZDQW
WR6RKHPRUWJDJHGPRUHDQGSODQWHGPRUHFURSVDQGIROORZHGKLVEHVW
MXGJPHQW(YHU\WLPHFKDQFHSOD\HGRXWDJDLQVWKLP'DGJRWULJKWEDFNXSDQG
ZHQWDWLWDJDLQ7KDWZRUNHGIRUDZKLOHEHFDXVHKHGLGNQRZIDUPLQJ%XW
WKHQWKHUHZDVDELJPDUNHWIOXFWXDWLRQDQGKHJRWFDXJKWDQGORVW
HYHU\WKLQJ+HZDVVSHDNLQJTXLFNO\DVKHDWHDQGKHGLGQWNQRZZK\EXWLW
IHOWULJKW
,VHH7KDWZDVZK\KHZDVGRLQJWKDWGDQJHURXVMRE
:KLFKNLOOHGKLP\HV
,VHH$QG\RXGHDOWZLWKWKDW6XEPHUJHGLWWRKHOS\RXUPRWKHU
OHDUQHGLQWKHKDUGWLPHVWKDWIROORZHGWRUHVHUYH\RXUUHDFWLRQVIRUDPRPHQW
ZKHQLWZDVDOOULJKWWROHWLWJR
,I\RXVD\,VHHDJDLQ,ZRQWOHW\RXZDWFKODWHUZKHQ,WDNHD
VKRZHU
6KHVPLOHGEXWWKHQWKHVDPHSHQHWUDWLQJFDVWFDPHRYHUKHUIDFH<RX
ILWVRPHZHOOGHILQHGSDUDPHWHUV0HQZKRDUHFRQWDLQHG7KH\FRQWURO
WKHPVHOYHVE\OHWWLQJYHU\OLWWOHLQ7KH\GRQRWVKRZDJUHDWGHDORUWDON
WRRPXFK
([FHSWWRWKHLUZRPDQ+HKDGVWRSSHGHDWLQJ
<RXKDYHOLWWOHWLPHIRUVPDOOWDONSHRSOHDW6WUHHOLQJFRPPHQWRQ
WKDW\HW\RXVSHDNIUHHO\ZLWKPH
,WU\QRWWREODWKHU
%HLQJPDOHLVFRPSOLFDWHG
6RLVEHLQJIHPDOHWKRXJK\RXYHPDVWHUHGLWEHDXWLIXOO\
,OOWDNHWKDWDVDUDWKHUIRUPDOFRPSOLPHQW
$QGVRLWZDV-XVWSODLQEHLQJKXPDQLVMXVWSODLQKDUG
6R,DPILQGLQJ<RXOHDUQHGDOOWKLVRQ+HOLFRQ
,OHDUQHGWRGHDOZLWKHVVHQWLDOV
$OVRWRKDWHIOXFWXDWLRQV7KH\FDQNLOO\RX
+HWRRNDVZLJRIWKHEHHUVWLOOFROGDQGELWLQJ,KDGQWWKRXJKWRI
LWWKDWZD\
:K\GLGQW\RXVD\DOOWKLVLQWKHILUVWSODFH"
,GLGQWNQRZLWLQWKHILUVWSODFH
$FRUROODU\WKHQ,I \RXFRPPLW\RXUVHOIWRDZRPDQ\RXJLYHDZD\DV
PXFKRI\RXUVHOIDV\RXFDQLQVLGHWKDWHQFORVHGVSDFH
7KHYROXPHEHWZHHQWKHWZRRIXV
$JHRPHWULFDQDORJ\LVDVJRRGDVDQ\7KHWLSRIKHUWRQJXHPDGHKHU
ORZHUOLSEXOJHRXWVOLJKWO\DVLWDOZD\VGLGZKHQVKHSRQGHUHGDSRLQW$QG
\RXFRPPLW\RXUVHOIZKROO\WRDYHUWLQJWKHSULFHOLIHH[DFWV
7KHSULFHRIIOXFWXDWLRQV"
,I\RXFDQSUHGLFW\RXFDQDYRLG&RUUHFW0DQDJH
7KLVLVDZIXOO\DQDO\WLF
,YHVNLSSHGRYHUWKHKDUGSDUWVEXWWKH\ZLOOEHRQWKHKRPHZRUN
DVVLJQPHQW
8VXDOO\WKHVHNLQGVRIWDONXVHSKUDVHVOLNHRSWLPDOO\FRQVROLGDWHG
VHOI,YHEHHQZDLWLQJIRUWKHMDUJRQWRFRPHWURWWLQJRXW+HKDGILQLVKHG
WKHERZODQGIHOWPXFKEHWWHU
)RRGLVRQHRIWKHOLIHDIILUPLQJH[SHULHQFHV
6RWKDWVZK\,GRLW
1RZ\RXUHPDNLQJIXQRIPH
1RMXVWZRUNLQJRXWWKHLPSOLFDWLRQVRIWKHWKHRU\,OLNHGWKHSDUW

DERXWKDWLQJXQSUHGLFWDELOLW\DQGIOXFWXDWLRQVEHFDXVHWKH\KXUWSHRSOH
6RFDQ(PSLUHVLIWKH\IDOO
5LJKW+HILQLVKHGWKHEHHUDQGWKRXJKWDERXWKDYLQJDQRWKHU$Q\PRUH
ZRXOGGXOOKLPDOLWWOH+HZRXOGSUHIHUDQRWKHUZD\WRWDNHIURPKLPWKHHGJH
KHVWLOOIHOW
%LJDSSHWLWH6KHVPLOHG
<RXKDYHQRLGHD$QGWKHSURVSHFWRIGHDWKFDQVWLPXODWHPRUHWKDQRQH
NLQGRIDSSHWLWH/HWVJREDFNWRWKDWSDUWDERXWWKHKRPHZRUNDVVLJQPHQW
<RXKDYHVRPHWKLQJLQPLQG
+HJULQQHG<RXKDYHQRLGHD


+HVDYRUHGKLVZRUNDOOWKHPRUHVLQFHKHKDGOHVVWLPHIRULW
+DULVDWLQKLVGDUNHQHGRIILFHDEVROXWHO\VWLOOZDWFKLQJWKH'
QXPHULFVHYROYHOLNHOXPLQRXVIRJVLQWKHDLUEHIRUHKLP
(PSLUHVFKRODUVKDGNQRZQWKHURRWEDVLFVRISV\FKRKLVWRU\IRU
PLOOHQQLD,QDQFLHQWWLPHVSHGDQWVKDGFKDUWHG WKHWZHQW\VL[VWDEOHDQG
PHWDVWDEOHVRFLDOV\VWHPV7KHUHZHUHSOHQW\RIGHYROYHGSODQHWVWRVWXG\
IDOOHQLQWREDUEDULVPOLNHWKH3RUFRVDQGWKHLU5DJLQJ5LWXDOVWKH/L]]LHV
DQGWKHLU*\QR*RYHUQV
+HZDWFKHGWKHIDPLOLDUSDWWHUQVIRUPDVKLVVLPXODWLRQVWHSSHGWKURXJK
FHQWXULHVRI*DODFWLFHYROXWLRQ6RPHVRFLDOV\VWHPVSURYHGVWDEOHRQO\RQ
VPDOOVFDOHV
,QWKHDLUKXQJWKHUDQNVRIZKROHZRUOGVFDXJKWLQVWDEOH=RQHV
3ULPLWLYH6RFLDOLVP)HPR3DVWRUDOLVP0DFKR7ULEDOLVP7KHVHZHUHWKHVWURQJ
DWWUDFWRUVRIKXPDQVRFLRORJ\LVODQGVLQWKHFKDRVVHD
6RPHVRFLHWLHVODERUHGWKURXJKWKHLUPHWDVWDELOLW\WKHQFUDVKHG
7KHRFUDF\7UDQVFHQGHQWDOLVP0DFKR)HXGDOLVP7KLVODWWHUDSSHDUHGZKHQHYHU
SHRSOHKDGPHWDOOXUJ\DQGDJULFXOWXUH3ODQHWVZKLFKKDGVOLGDORQJZD\GRZQ
WKHFXUYHZRXOGPDQLIHVWLW
,PSHULDOVFKRODUVKDGORQJMXVWLILHGWKH(PSLUHWKUHDGHGE\QDUURZ
ZRUPKROHVDQGOXPEHULQJK\SHUVKLSVDVWKHEHVWKXPDQVRFLDOVWUXFWXUH,WKDG
LQGHHGSURYHGVWDEOHDQGEHQHYROHQW
7KHLUUHLJQLQJPRGHO%HQLJQ,PSHULDO)HXGDOLVPDFFHSWHGWKDWKXPDQV
ZHUHKLHUDUFKLFDO$VZHOOWKH\ZHUHG\QDVWLFDOO\DPELWLRXVOLNLQJWKH
FRQWLQXLW\RISRZHUDQGLWVSRPS7KH\ZHUHTXLWHGHYRWHGWRV\PEROVRIXQLW\
RI,PSHULDOJUDQGHXU*RVVLSDERXWWKHJUHDW ZDVIRUPRVWSHRSOHWKHHVVHQFH
RIKLVWRU\LWVHOI
,PSHULDOSRZHUZDVPRGHUDWHGE\WUDGLWLRQVRIQREOHOHDGHUVKLSWKH
DVVXPHGVXSHULRULW\RIWKRVHZKRURVHWRJUHDWQHVV%HQHDWKVXFKLPSUHVVLYH
UHVSOHQGHQFHDV&OHRQZHOONQHZOD\WKHEHGURFNRIDQH[WUHPHO\KRQHVW
PHULWRFUDWLFFLYLOVHUYLFH:LWKRXWWKDWFRUUXSWLRQZRXOGVSUHDGOLNHDVWDLQ
DFURVVWKHVWDUVFRUURGLQJWKHVSOHQGRU
+HZDWFKHGWKHGLDJUDPDFRPSOH['ZHERIVXUIDFHVWKHODQGVFDSHRI
VRFLDOVSDFH
6ORZVWHSSHGKHFRXOGVHHLQGLYLGXDOHYHQWZDYHVZDVKLQJWKURXJKWKH
VLP(DFKFHOOLQWKHJULGJRWUHFRPSXWHGHYHU\FORFNF\FOHUHDGMXVWLQJHYHU\
QHDUHVWQHLJKERULQWHUDFWLRQLQ'
7KHZRUNLQJUXOHVRIWKXPEZHUHQRWWKHWUXHODZVRISK\VLFVEXLOWXS
IURPIXQGDPHQWDOVOLNHPD[LRQPHFKDQLFVRUHYHQIURPWKHVLPSOH1HZ7RZQ/DZV
5DWKHUWKH\ZHUHURXJKDOJRULWKPVWKDWUHGXFHGLQWULFDWHODZVWRWULYLDO
DULWKPHWLF6RFLHW\VHHQUDZWKLVZD\ZDVFUXGHQRWP\VWHULRXVDWDOO
7KHQFDPHFKDRV
+HZDVYLHZLQJWKHSROLF\VSDFH ZLWKLWVIDPLO\RIYDULDEOHVGHJUHH
RISRODULW\RUSRZHUFRQFHQWUDWLRQVL]HRIFRDOLWLRQVFRQIOLFWVFDOH,Q
WKLVVLPSOHPRGHOOHDUQLQJORRSVHPHUJHG6WDUWLQJIURPDSODWHDXSHULRGRI

VHHPLQJVWDELOLW\EXWQRWVWDVLVWKHV\VWHPSURGXFHGD&KDOOHQJHU,GHD
7KLVWKUHDWHQHGVWDELOLW\ZKLFKIRUFHGIRUPDWLRQRIFRDOLWLRQVWR
RSSRVHWKHFKDOOHQJH)DFWLRQVIRUPHG7KHQWKH\JHOOHG7KHFRDOLWLRQVFRXOG
EHSULPDULO\UHOLJLRXVSROLWLFDOHFRQRPLFWHFKQRORJLFDOHYHQPLOLWDU\
WKRXJKWKLVODVWZDVDSDUWLFXODUO\LQHIIHFWLYHPHWKRGWKHGDWDVKRZHG7KH
V\VWHPWKHQYHHUHGLQWRDFKDRWLFUHDOPVRPHWLPHVHPHUJLQJWRQHZVWDELOLW\
VRPHWLPHVGHFD\LQJ
,QWKHG\QDPLFV\VWHPWKHUHZDVDSUHVVXUHFUHDWHGE\WKHFRQWUDVW
EHWZHHQSHRSOHVLGHDOSLFWXUHRIWKHZRUOGDQGWKHUHDOLW\7RRELJD
GLIIHUHQFHGURYHIUHVKIRUFHVIRUFKDQJH2IWHQWKHIRUFHVZHUHDSSDUHQWO\
XQFRQVFLRXVSHRSOHNQHZVRPHWKLQJZDVZURQJIHOWUHVWLYHEXWFRXOGQRWIL[
RQDFOHDUFDXVH
6RPXFKIRUUDWLRQDODFWRUPRGHOV+DULWKRXJKW <HWVRPHVWLOOFOXQJ
WRWKDWREYLRXVO\GXPEDSSUR[LPDWLRQ
(YHU\RQHWKRXJKWWKH(PSLUHZDVVLPSOH
1RWWKHEXONRIWKHSRSXODWLRQRIFRXUVHGD]]OHGE\WKHPL[RI
FXOWXUHVDQGH[RWLFDDIIRUGHGE\WUDGHDQGFRPPXQLFDWLRQVIURPP\ULDGZRUOGV
7KH\ZHUH SHUSHWXDOO\GLVWUDFWHGDQLPSRUWDQWGDPSHURQFKDRV
(YHQWRVRFLDOWKHRULVWVWKRXJKWKHEDVLFVWUXFWXUHDQGLQWHUUHODWLRQV
VHHPHGWREHSUHGLFWDEOHZLWKDPRGHUDWHQXPEHURIIHHGEDFNORRSVVROLGDQG
WUDGLWLRQDO&RQYHQWLRQDOZLVGRPKHOGWKDWWKHVH FRXOGEHHDVLO\VHSDUDWHGRXW
DQGWUHDWHG
0RVWLPSRUWDQWWKHUHZDVFHQWUDOGHFLVLRQPDNLQJRUVRPRVWWKRXJKW
7KH(PSHURU.QHZ%HVWULJKW"
,QUHDOLW\WKH(PSLUHZDVDQHVWHGRUGHUHGKLHUDUFK\,PSHULDO
)HXGDOLVP$WWKHORZHUERXQGZHUHWKH=RQHVRIWKHJDOD[\VRPHWLPHVRQO\D
GR]HQOLJKW\HDUVDFURVVXSWRDIHZWKRXVDQGOLJKW\HDUVGLDPHWHU$ERYH
WKDWZHUH&RPSDFWVRIDIHZKXQGUHGQHDUE\=RQHV7KH&RPSDFWVLQWHUORFNHG
LQWRWKH*DODFWLFFURVVOLQNHGV\VWHP
%XWWKHZKROHWKLQJZDVVOLGLQJGRZQKLOO,QWKHFRPSOH[GLDJUDP
VSDUNOLQJIOLFNHUVFDPHDQGZHQW:KDWZHUHWKRVH"
+DULFORVHXSSHGWKHIODUHV=RQHVRIFKDRVZKHUHSUHGLFWDELOLW\
EHFRPHVLPSRVVLEOH7KHVHILHU\HUXSWLRQVPLJKWEHWKHFOXHWRZK\WKH(PSLUH
ZDVIDLOLQJ
+DULIHOWLQKLVVRXOWKDWXQSUHGLFWDELOLW\ZDVEDGIRUKXPDQLW\IRU
KLVPDWKHPDWLFV%XWLWZDVLQHVFDSDEOH
7KLVZDVWKHVHFUHWWKH(PSHURUDQGRWKHUVPXVWQHYHUNQRZ7KDWXQWLO
KHFRXOGUXOHFKDRVRUDWOHDVWSHHULQWRLWSV\FKRKLVWRU\ZDVDIUDXG
+HGHFLGHGWRORRNDWDVLQJOHFDVH0D\EHWKDWZRXOGEHFOHDQHU
+HVHOHFWHG6DUNWKHZRUOGZKLFKKDGIRXQGDQGGHYHORSHGWKH9ROWDLUH
DQG-RDQVLPV,WELOOHGLWVHOIDVWKH+RPHRIWKH1HZ5HQDLVVDQFHDFRPPRQ
UKHWRULFDOSRVWXUHRIWHQDGRSWHG7KH\VHHPHGEULJKWDQGFUHDWLYHDVKH
UHYLHZHGWKHVWDWXVJULGV
+DUL\DZQHGGHVSLWHKLPVHOI6XUH6DUNORRNHGJRRGIRUQRZ$ERRPLQJ
HFRQRP\$OHDGHULQVW\OHVDQGIDVKLRQ
%XWLWVSURILOHFODVVHGLWDPRQJWKH&KDRV:RUOGV7KH\URVHIRUD
ZKLOHVHHPLQJWRGHI\WKHGDPSLQJPHFKDQLVPVWKDWKHOGSODQHWVLQWKH
,PSHULDO(TXLOLEULXP
7KHQWKHLUVRFLDOIDEULFGLVVROYHG7KH\SOXPPHWHGEDFNLQWRRQHRIWKH
6WDVLV6WDWHV$QDUFKR,QGXVWULDOIRU6DUNKHZRXOGSUHGLFWIURPWKHGDWD
1RJUHDWIOHHWVPDGHWKLVKDSSHQ7KH(PSLUHGLGQRWGHVSLWHLPSUHVVLRQV
UXOHE\IRUFH6RFLDOHYROXWLRQVPDGHWKH&KDRV:RUOGVIDOWHUDQGGLH
8VXDOO\WKH*DOD[\DVDZKROHVXIIHUHGIHZUHSHUFXVVLRQV
%XWODWHO\WKHUHKDGEHHQPRUHRIWKHP$QGWKH(PSLUHZDVYLVLEO\
GHFD\LQJ 3URGXFWLYLW\ZDVGRZQLQFRKHUHQFHLQWKHVRFLDOVSDFHVRQWKHULVH
:K\"
+HJRWXSDQGZHQWIRUDZRUNRXWDWWKHJ\PQDVLXP(QRXJKRIWKHPLQG

/HWKLVERG\VZHDWRXWWKHIUXVWUDWLRQVZURXJKWE\KLVLQWHOOHFW


+HGLGQRWZDQWWRJRWRWKH*UDQG,PSHULDO8QLYHUVLWLHV&ROORTX\EXW
WKH,PSHULDO3URWRFRO2IILFHOHDQHGRQKLP$)LUVW0LQLVWHULDOFDQGLGDWHKDV
REOLJDWLRQVWKHRIILFLRXVZRPDQKDGLQIRUPHGKLP
6RKHDQG'RUVGXWLIXOO\DSSHDUHGDWWKHHQRUPRXV,PSHULDO)HVWLYDO
+DOO+LV6SHFLDOVZRUHGLVFUHHWIRUPDOEXVLQHVVVXLWVFRPSOHWHZLWKWKH
FROODUUXIIOHVRIPLGOHYHOPHULWRFUDWV
$OOWKHEHWWHUWREOHQGLQWRWKHFURZG'RUVMRNHG+DULVDZWKDW
HYHU\RQHVL]HGXSWKHPHQLQDQLQVWDQWDQGJLQJHUO\HGJHGDZD\+HZRXOGKDYH
EHHQIRROHG
7KH\HQWHUHGDKLJKGRXEOHDUFKHGFRUULGRUOLQHGZLWKDQFLHQWVWDWXDU\
ZKLFKLQYLWHGWKHSDVVHUVE\WROLFNWKHP+DULWULHGLWDIWHUFDUHIXOO\
UHDGLQJWKHJORZVLJQZKLFKUHDVVXUHGKLPWKHUHZDVQRELRORJLFDOULVN$
ORQJVXFFXOHQWOLFNJDYHKLP DIDLQWRGGIODYRURIRLODQGEXUQWDSSOHVD
KLQWRIZKDWWKHDQFLHQWVIRXQGHQWLFLQJ
:KDWVILUVWRQWKHDJHQGD"KHDVNHGKLV3URWRFRO2IILFHU
$QDXGLHQFHZLWKWKH$FDGHPLF3RWHQWDWHVKHDQVZHUHGDGGLQJ
SRLQWHGO\$ORQH
'RUVGLVDJUHHGDQG+DULQHJRWLDWHGDFRPSURPLVH'RUVJRWWRVWDQGDW
WKHGRRUZD\QRPRUH,OOKDYHDSSHWL]HUVVHUYHGWR\RXWKHUHWKH3URWRFRO
2IILFHUVDLGWHVWLO\
'RUVJDYHKHUDQLF\VPLOH:K\LVWKLVDKDXGLHQFHVRLPSRUWDQW"
7KH3URWRFRO2IILFHUJDYHKHUDSLW\LQJORRN7KH3RWHQWDWHFDUULHV
PXFKZHLJKWLQWKH+LJK&RXQFLO
+DULVDLGVRRWKLQJO\$QGFDQWKURZDIHZYRWHVP\ZD\
$ELWRISROLWHWDONWKH3URWRFRO2IILFHUVDLG
,VKDOOSURPLVHWROHWPHSXWWKLVGHOLFDWHO\VPRRFKKLVEXWWRFNV2U
KHUVDVWKHFDVHPD\EH
'RUVVPLOHG%HWWHUQRWEHKHUV
,QWULJXLQJKRZWKHLPSOLFDWLRQVRIWKHDFWVZLWFKZLWKVH[
7KH3URWRFRO2IILFHUFRXJKHGDQGXVKHUHGKLPGHIWO\WKURXJKVQDSSLQJ
VFUHHQFXUWDLQVKLVKDLUVL]]OLQJ$SSDUHQWO\HYHQDQ$FDGHPLF3RWHQWDWHKDG
QHHGRISHUVRQDOVHFXULW\PHDVXUHV
2QFHZLWKLQWKHIRUPDOVWDWHURRPV+DULIRXQGKHZDVDORQHZLWKDZRPDQ
RIFRQVLGHUDEOHDJHDQGDUWLILFLDOEHDXWLHV6RWKDWZDVZK\WKH3URWRFRO
2IILFHUKDGFRXJKHG
+RZYHU\QLFHRI\RXWRFRPH6KHVWRRGPRWLRQOHVVRQHKDQGH[WHQGHG
OLPSDWWKHZULVW$ZDWHUIDOOHIIHFWVSDWWHUHGEHKLQGKHUIUDPLQJKHUERG\
ZHOO
+HIHOWDVLIKHZHUHZDONLQJLQWRDVWLOOOLIHPXVHXPGLVSOD\+H
GLGQWNQRZZKHWKHUWRVKDNHKHUKDQGRUNLVVLW+HVKRRNLWDQGKHUORRN
PDGHKLPWKLQNKHKDGFKRVHQZURQJ
6KHZRUHDORWRIHPEHGGHGPDNHXSDQGIURPWKHZD\VKHOHDQHGIRUZDUG
WRPDNHDSRLQWKHJDWKHUHGWKDWKHUSDOHH\HVJRWKHUDORWRIWKLQJVRWKHU
SHRSOHGLGQRWUHFHLYH
6KHKDGRQFHEHHQDQRULJLQDOWKLQNHUDQRQOLQHDUSKLORVRSKHU1RZ
PHULWRFUDWVDFURVVWKHVSLUDODUPVRZHGKHUIHDOW\
%HIRUHWKH\KDGVDWGRZQVKHJHVWXUHG2KZRXOG\RXWXQHWKDWZDOO
KD]H"7KHZDWHUIDOOHIIHFWKDGWXUQHGLQWRDURLOLQJWKLFNIRJ6RPHKRZLW
JHWVZURQJDOOWKHWLPHDQGWKHURRPGRHVQWDGMXVWLW
$ZD\RIHVWDEOLVKLQJDKLHUDUFK\+DULVXVSHFWHG*HWKLPXVHGWRGRLQJ
OLWWOHWDVNVDWKHUELGGLQJ2UPD\EHVKHZDVOLNHVRPHRWKHUZRPHQZKRLI
WKH\FRXOGQWJHW\RXWRGRPLQRUVHUYLFHVIHOWLQVHFXUH2UPD\EHVKHZDV
MXVWLQHSWDQGZDQWHGKHUZDWHUIDOOEDFN2UPD\EHKHMXVWDQDO\]HGWKHKHOO

RXWRIHYHU\WKLQJDPDWKLVWVSDWWHUQ
,YHKHDUGUHPDUNDEOHWKLQJVDERXW\RXUZRUNVKHVDLGVKLIWLQJIURP
+LJK)LJXUH8VHGWR6QDSS\2EHGLHQFHWR*UDFLRXV/DG\3XWWLQJDQ8QGHUOLQJDW
(DVH+HVDLGVRPHWKLQJQRQFRPPLWWDO$WLNWRNEURXJKWDVWLPZKLFKZDVEDUHO\
OLTXLGGULIWLQJGRZQKLVWKURDWDQGLQWRKLVQRVWULOVOLNHDVLONHQVLQLVWHU
FORXG
<RXEHOLHYH\RXUVHOISUDFWLFDOHQRXJKIRUWKHPLQLVWHUVKLS"
1RWKLQJLVPRUHSUDFWLFDOPRUHXVHIXOWKDQDVRXQGWKHRU\
6DLGOLNHDWUXHPDWKLVW6SHDNLQJIRUDOOPHULWRFUDWV,GRKRSH\RX
DUHHTXDOWRWKHWDVN
+HWKRXJKWRIWHOOLQJKHUVKHGLGKDYHDFHUWDLQFKDUPDIWHUDOOWKDW
KHGLGQWJLYHDGDPQIRUWKHPLQLVWHUVKLS%XWVRPHLQWXLWLRQKHOGKLPEDFN
6KHZDVDQRWKHUSRZHUEURNHU+HNQHZVKHKDGEHHQYLQGLFWLYHLQWKHSDVW
6KHJDYHKLPDVKUHZGVPLOH,XQGHUVWDQG\RXKDYHFKDUPHGWKH(PSHURU
ZLWKDWKHRU\RIKLVWRU\
$WWKHPRPHQWLWLVOLWWOHEHWWHUWKDQDGHVFULSWLRQ
$VRUWRIVXPPDU\"
%UHDNWKURXJKVIRUWKHEULOOLDQWV\QWKHVHVIRUWKHGULYHQ
6XUHO\\RXNQRZWKHUHLVDQDLURIIXWLOLW\DERXWVXFKDQDPELWLRQ$
JOHDPRIVWHHOLQWKHSDOHH\HV
,ZDVXQDZDUH0DGDP
6FLHQFHLVVLPSO\DQDUELWUDU\FRQVWUXFW,WSHUSHWXDWHVWKH
GLVFUHGLWHGQRWLRQWKDWSURJUHVVLVDOZD\VSRVVLEOH/HWDORQHGHVLUDEOH
2K" +HKDGSODVWHUHGDSROLWHVPLOHRQKLVIDFHDQGZDVGDPQHGLIKH
ZRXOGOHWLWVOLS
2QO\RSSUHVVLYHVRFLDORUGHUVHPHUJHIURPVXFKLGHDV6FLHQFHV
SXUSRUWHGREMHFWLYLW\KLGHVWKHSODLQIDFWWKDWLWLVVLPSO\RQHODQJXDJH
JDPHDPRQJRWKHUV$OOVXFKDUELWUDU\FRQILJXUDWLRQVVLWLQDFRQFHSWXDO
XQLYHUVHRIFRPSHWLQJGLVFRXUVHV
,VHH7KHVPLOHZDVJHWWLQJKHDYLHU+LVIDFHIHOWOLNHLWZRXOG
FUDFN
7RHOHYDWHVFLHQWLILFVKHVQLIIHGGLVGDLQIXOO\VRFDOOHGWUXWKV
RYHURWKHUFRQVWUXFWLRQV LVWDQWDPRXQWWRFRORQL]LQJWKHLQWHOOHFWXDO
ODQGVFDSH7RHQVODYLQJRQHVRSSRVLWLRQ
8PPP+HKDGDVLQNLQJIHHOLQJWKDWKHZDVQRWJRLQJWRODVWORQJDVD
GRRUPDW%HIRUH\RXHYHQFRQVLGHUWKHVXEMHFW\RXFODLPWRNQRZWKHEHVW
ZD\WRVWXG\LW"
6RFLDOWKHRU\DQGOLQJXLVWLFDQDO\VLVKDYHWKHILQDOSRZHUVLQFHDOO
WUXWKVKDYHTXLWHOLPLWHGKLVWRULFDODQGFXOWXUDOYDOLGLW\7KHUHIRUHWKLV
SV\FKRKLVWRU\RIDOOVRFLHWLHVLVDEVXUG
6RVKHNQHZWKHWHUPZRUGZDVVSUHDGLQJ3HUKDSV\RXKDYHLQVXIILFLHQW
UHJDUGIRUWKHURXJKUXERIWKHUHDO
$VOLJKWWKDZLQJ&OHYHUSKUDVLQJ$FDGHPLFLDQ6WLOOWKHFDWHJRU\
UHDOLVDVRFLDOFRQVWUXFWLRQ
/RRNRIFRXUVHVFLHQFHLVDVRFLDOSURFHVV%XWVFLHQWLILFWKHRULHV
GRQWPHUHO\UHIOHFWVRFLHW\
+RZFKDUPLQJWRVWLOOWKLQNVR$ZDQVPLOHIDLOHGWRFRQFHDOWKHLF\
JOHDPLQKHUH\HV
7KHRULHVDUHQRWPHUHFKDQJHVRIIDVKLRQOLNHVKLIWLQJPHQVVNLUWV
IURPVKRUWWRORQJ
$FDGHPLFLDQ\RXPXVWNQRZWKDWWKHUHLVQRWKLQJNQRZDEOHEH\RQGKXPDQ
GLVFRXUVHV
+HNHSWKLVYRLFHOHYHOFRXUWHRXV3RLQWRXWWKDWVKHKDGXVHGNQRZ
LQWZRFRQWUDGLFWRU\ZD\VLQWKHVDPHVHQWHQFH"1RWKDWZRXOGEHSOD\LQJZRUG
JDPHVZKLFKZRXOGVXEWO\VXSSRUWKHUYLHZV6XUHPRXQWDLQFOLPEHUVPLJKW
DUJXH DQGWKHRUL]HDERXWWKHEHVWURXWHWRWKHWRS
$OZD\VLQZD\VFRQGLWLRQHGE\WKHLUKLVWRU\DQGVRFLDOVWUXFWXUHV

EXWRQFHWKH\JHWWKHUHWKH\NQRZLW1RERG\ZRXOGVD\WKH\
FRQVWUXFWHGWKHPRXQWDLQ
6KHSXUVHGKHUOLSVDQGKDGDQRWKHUIRJJ\ZKLWHVWLP8PPP(OHPHQWDU\
UHDOLVP%XWDOORI\RXUIDFWVHPERG\WKHRU\:D\VRIVHHLQJ
,FDQWKHOSQRWLFLQJWKDWDQWKURSRORJLVWVVRFLRORJLVWVWKHZKROH
JDQJJHWDGHOLFLRXVUXVKRIVXSHULRULW\E\GHQ\LQJWKHREMHFWLYHUHDOLW\RI
WKHKDUG VFLHQFHVGLVFRYHULHV
6KHGUHZKHUVHOIXS7KHUHDUHQRHOHPHQWDOWUXWKVWKDWH[LVW
LQGHSHQGHQWRIWKHSHRSOHODQJXDJHVDQGFXOWXUHVWKDWPDNHWKHP
<RXGRQWEHOLHYHLQREMHFWLYHUHDOLW\WKHQ"
:KRVWKHREMHFW"
+HKDGWRODXJK/DQJXDJHSOD\6ROLQJXLVWLFVWUXFWXUHVGLFWDWHKRZZH
VHH"
,VQWWKDWREYLRXV":HOLYHLQDJDOD[\ULFKLQFXOWXUHVDOOVHHLQJ
WKH*DOD[\WKHLUZD\
%XWREH\LQJODZV3OHQW\RIUHVHDUFKVKRZVWKDWWKRXJKWDQGSHUFHSWLRQ
SUHFHGHWDONH[LVWLQGHSHQGHQWRIODQJXDJH
:KDWODZV"
/DZVRIVRFLDOPRYHPHQW$WKHRU\RIVRFLDOKLVWRU\LIZHKDGRQH
<RXDWWHPSWWKHLPSRVVLEOH$QGLI\RXZLVKWREH)LUVW0LQLVWHU
HQMR\LQJWKHVXSSRUWRI\RXUIHOORZDFDGHPLFVDQGPHULWRFUDWV\RXVKDOOKDYH
WRIROORZ WKHSUHYDLOLQJYLHZRIRXUVRFLHW\0RGHUQOHDUQLQJLVDQLPDWHGE\D
IUDQNLQFUHGXOLW\WRZDUGVXFKPHWDQDUUDWLYHV
+HZDVVRUHO\WHPSWHGWRVD\7KHQ\RXDUHJRLQJWREHVXUSULVHGEXW
LQVWHDGVDLG:HVKDOOVHH
:HGRQWVHHWKLQJVDVWKH\DUH WKHOHDUQHGODG\VDLGZHVHHWKHP
DVZHDUH
:LWKDWRXFKRIVDGQHVVKHUHDOL]HGWKDWWKHUHSXEOLFRILQWHOOHFWXDO
LQTXLU\ZDVOLNHWKH(PSLUHQRWIUHHRILQWHUQDOGHFD\


7KH$FDGHPLF3RWHQWDWHOHGKLPRXWZLWKULWXDOZRUGVWRVPRRWKWKHZD\
DQG'RUVZDVVWDQGLQJDWWHQWLYHO\DWWKHJUDQGHQWUDQFH6WLOO+DULKDG
JRWWHQWKHHVVHQWLDOPHVVDJHWKHDFDGHPLFPHULWRFUDF\ZRXOGEDFNKLPIRU
)LUVW0LQLVWHULIKHDWOHDVWSDLGOLSVHUYLFHWRSUHYDLOLQJRUWKRGR[\
7RJHWKHUZLWKWKHFXVWRPDU\DFDGHPLFKRQRUJXDUGWKH\ZHQWGRZQLQWR
WKHYDVWURWXQGD7KLVZDVDGL]]\LQJERZOZLWKYDULRXVVFKRODUO\GLVFLSOLQHV
UHSUHVHQWHGE\WKHIXOOUHJDOLDDQGLQVLJQLDVSODVKHGDFURVVLPPHQVHZDOO
GHVLJQV%HORZWKHPVZLUOHGDFKDWWHULQJPREWKRXVDQGVRIWKHILQHVWPLQGV
JDWKHUHGIRUVSHHFKHVOHDUQHGUHSRUWVDQGRIFRXUVHPXFKLQILJKWLQJRIWKH
YHU\ILQHVWVRUW
7KLQNZHFDQVXUYLYHWKLV"+DULZKLVSHUHG
'RQWOHWJR'RUVVDLGVHL]LQJKLVKDQG
+HUHDOL]HGWKDWVKHKDGWDNHQKLVTXHVWLRQOLWHUDOO\
$OLWWOHODWHUWKH$FDGHPLF3RWHQWDWHZDVQWPDNLQJDVKRZRIVDYRULQJ
WKHERXTXHWRIWKHVWLPVDQ\PRUHMXVWVXFNLQJWKHPXSOLNHRQHRIWKHPDMRU
IRRGJURXSV6KHVWHHUHG+DULDQG'RUVIURPRQHFOXVWHURIWKHOHDUQHGWR
DQRWKHU2FFDVLRQDOO\VKHZRXOGUHPHPEHUKHUUROHDVKRVWHVVDQGIHLJQ
LQWHUHVWLQKLPDVPRUHWKDQDFKHVVSLHFHLQDODUJHUJDPH8QIRUWXQDWHO\
WKHVHEOXQWDWWHPSWVIDVWHQHGXSRQLQTXLULHVLQWRKLVSHUVRQDOOLIH
'RUVUHVLVWHGWKHVHLQTXLVLWLRQVRIFRXUVHVPLOLQJDQGVKDNLQJKHU
KHDG:KHQWKH3RWHQWDWHWXUQHGWR+DULDQGDVNHG'R\RXH[HUFLVH"KHFRXOG
QRWUHVLVWUHSO\LQJ,H[HUFLVHUHVWUDLQW
7KH3URWRFRO2IILFHUIURZQHGEXW+DULVUHPDUNZHQWXQQRWLFHGLQWKH
MRVWOLQJWKURQJ+HIRXQGWKHFRPSDQ\RIKLVIHOORZPHPEHUVRIWKH
SURIHVVRULDWRGGO\RIISXWWLQJ7KHLUFRQYHUVDWLRQVKDGDGLUHFWLRQOHVVLURQ\

ZKLFKFRQYH\HGZLWKUDLVHGH\HEURZVDQGDUFKWRQHVWKHVSHDNHUVVXSHULRULW\
WRHYHU\WKLQJKHZDVFRPPHQWLQJXSRQ
7KHLUDFHUELFSDUDGR[HVDQGVWLOHWWRKXPRUVWUXFN+DULDVLUULWDWLQJDQG
EHVLGHWKHSRLQW+HNQHZZHOOWKDWWKHPRVWVDYDJHFRQWURYHUVLHVDUHDERXW
PDWWHUVIRUZKLFKWKHUHLVQRJRRGHYLGHQFHHLWKHUZD\6WLOOWKHUHZDVD
PDQQHUHGGHVSHUDWLRQHYHQWRWKHVFLHQWLVWV
)XQGDPHQWDOSK\VLFVDQGFRVPRORJ\KDGEHHQZHOOZRUNHGRXWIDUEDFNLQ
DQWLTXLW\1RZDOORI,PSHULDOVFLHQWLILFKLVWRU\GHDOWZLWKWHDVLQJRXW
LQWULFDWHGHWDLOVDQGVHDUFKLQJIRUFOHYHUDSSOLFDWLRQV+XPDQNLQGZDVWUDSSHG
LQDFRVPRVVWHDGLO\H[SDQGLQJWKRXJKVORZLQJVOLJKWO\DQGGHVWLQHGWRVHH
WKHVWDUVZLQNRXW$VORZFRROJOLGHLQWRDQLQGHILQLWHIXWXUHZDVRUGDLQHG
E\WKHPDVVHQHUJ\FRQWHQWSUHVHQWDWWKHYHU\FRQFHSWLRQRIWKHXQLYHUVH
+XPDQVFRXOGGRQRWKLQJDJDLQVWWKDWIDWH([FHSWRIFRXUVHXQGHUVWDQGLW
6RWKHJUDQGHVWRI LQWHOOHFWXDOWHUULWRULHVKDGEHHQRSHQHGDQGWKDW
FDQRQO\EHGRQHRQFH1RZVFLHQWLVWVZHUHOHVVOLNHGLVFRYHUHUVWKDQOLNH
VHWWOHUVHYHQWRXULVWV
+HVKRXOGQRWEHVXUSULVHGKHUHDOL]HGWRILQGWKDWHYHQWKHEHVWRI
WKHPJDWKHUHGIURPDQHQWLUH*DOD[\VKRXOGKDYHDQDLURIMDGHGEULOOLDQFH
OLNHWDUQLVKHGJROG
0HULWRFUDWVGLGQRWKDYHPDQ\FKLOGUHQDQGWKHUHZDVDQDLU\VWHULOLW\
DERXWWKHP+DULZRQGHUHGLIWKHUHZDVDPLGGOHJURXQGEHWZHHQWKHVWDOHQHVV
KHIHOWKHUHDQGWKHFKDRVRIWKHUHQDLVVDQFHVVSURXWLQJXSRQ&KDRV:RUOGV
3HUKDSVKHQHHGHGWRNQRZPRUHDERXWEDVLFKXPDQQDWXUH
7KH3URWRFRO2IILFHUVWHHUHGKLPGRZQDVSLUDODLUUDPSHOHFWURVWDWLFV
VHL]LQJWKHPDQGJHQWO\ORZHULQJWKHSDUW\WRZDUGKHORRNHGGRZQZLWK
WUHSLGDWLRQWKHREOLJDWRU\PHGLDSHRSOH+HEUDFHGKLPVHOI'RUVVTXHH]HGKLV
KDQG'R\RXKDYHWRWDONWRWKHP"
+HVLJKHG,I,LJQRUHWKHPWKH\ZLOOUHSRUWWKDW
/HW/DPXUNDPXVHWKHP
1R+LVH\HVQDUURZHG6LQFH,PLQWKLV,PLJKWDVZHOOSOD\WR
ZLQ
+HUH\HVZLGHQHGZLWKUHYHODWLRQ<RXYHGHFLGHGKDYHQW\RX"
7RWU\"<RXEHW
:KDWKDSSHQHG"
7KDWZRPDQEDFNWKHUHWKH3RWHQWDWH6KHDQGKHUNLQGWKLQNWKH
ZRUOGVMXVWDVHWRIRSLQLRQV
:KDWKDVWKDWJRWWRGRZLWK/DPXUN"
,FDQWH[SODLQLW7KH\UHDOOSDUWRIWKHGHFD\0D\EHWKDWVLW
6KHVWXGLHGKLVIDFH,OOQHYHUXQGHUVWDQG\RX
*RRG7KDWZRXOGEHGXOO\HV"
7KHPHGLDSDFNDSSURDFKHGVQRXWVDLPHGOLNHZHDSRQV
+DULZKLVSHUHGWR'RUV(YHU\LQWHUYLHZEHJLQVDVDVHGXFWLRQDQGHQGV
DVDEHWUD\DO7KH\GHVFHQGHG
$FDGHPLFLDQ6HOGRQ\RXDUHNQRZQDVDPDWKLVWDFDQGLGDWH)LUVW
0LQLVWHUDQGD+HOLFRQLDQ<RX
,RQO\UHDOL]HG,ZDVD+HOLFRQLDQZKHQ,FDPHWR7UDQWRU
$QG\RXUFDUHHUDVD PDWKLVW
,RQO\UHDOL]HGWKDW,WKRXJKWDVDPDWKLVWZKHQ,EHJDQPHHWLQJ
SROLWLFLDQV
:HOOWKHQDVDSROLWLFLDQ
,DPVWLOOD+HOLFRQLDQ7KLVGUHZVRPHODXJKWHU
<RXSUL]HWKHWUDGLWLRQDOWKHQ"
,ILWZRUNV
:HEHQRWRSHQWRROGLGHDVDZLOORZ\ZRPDQIURPWKH)RUQD[=RQH
VDLG)XWXUHRI(PSLUHFRPHVIURPSHRSOHQRWODZV$JUHH"
6KHZDVD5DWLRQDOXVLQJWKHLUVWULSSHGGRZQXWWHUO\RUGHUO\*DODFWLF
IUHHRILUUHJXODUYHUEVDQGFRPSOH[FRQVWUXFWLRQV+DULFRXOGIROORZLWZHOO

HQRXJKEXWIRUKLPWKHRGGVZHUYHVDQGWXUQVRI&ODVVLFDO*DODFWLFHPERGLHG
LWVFKDUP
7R+DULVGHOLJKWVHYHUDOSHRSOHGLVDJUHHGZLWKKHUIRUPXODWHG
TXHVWLRQVKRXWLQJ,QWKHQRLVHKHUHIOHFWHGRQWKHLQILQLW\RIKXPDQ
FXOWXUHVUHSUHVHQWHGLQWKLVYDVWERZODQGVWLOOXQLWHGXQGHU&ODVVLFDO
*DODFWLF
7KHODQJXDJHVVWXUG\EDVHKDGVWLWFKHGWRJHWKHUWKHHDUO\(PSLUH)RU
PDQ\PLOOHQQLDQRZWKHODQJXDJHKDGVDWRQLWVODXUHOVDGPLWWHGO\+HKDG
DGGHGDVPDOOLQWHUDFWLRQWHUPWRKLVHTXDWLRQVWRDOORZIRUWKHFXOWXUDO
ULSSOHVH[FLWHGE\WKHVSODVKLQJRIDQHZDUJRWLQWRWKHOLQJXLVWLFSRRO7KH
DQFLHQWUXIIOHVDQGIORXULVKHVRI*DODFWLFDOORZHGVXEWOHWLHVGHQLHGWKH
5DWLRQDOVRU5DWVDVVRPHFDOOHGWKHPDQGWKHIXQRISXQVDVZHOO
+HWULHGWR PDNHWKLVFDVHWRWKHZRPDQEXWVKHUHWRUWHG1RWVXSSRUW
RGGLW\6XSSRUWRUGHU2OGZD\VIDLOHG$VPDWKLVW\RXZLOOEHWRR
&RPHQRZ+DULVDLGLUNHG(YHQLQFORVHGD[LRPDWLFV\VWHPVQRWDOO
SURSRVLWLRQVDUHGHFLGDEOH,VXJJHVW\RXFDQQRWSUHGLFWZKDW,ZRXOGGRDVD
)LUVW0LQLVWHU
7KLQN\RX&RXQFLOVXEPLWVWRUHDVRQ"WKHZRPDQDVNHGKDXJKWLO\
,WLVWKHWULXPSKRIUHDVRQWRJHWRQZHOOZLWKWKRVHZKRSRVVHVV
QRQH+DULVDLG7RKLVVXUSULVHVRPHDSSODXGHG
<RXUWKHRU\RIKLVWRU\ GHQLHV*RGVSRZHUVWRLQWHUYHQHLQKXPDQ
DIIDLUVDWKLQPDQIURPDORZJUDYSODQHWDVVHUWHG:KDWVD\\RXWRWKDW"
+DULZDVDERXWWRDJUHHLWVHHPHGWRPDNHQRGLIIHUHQFHWRKLPZKHQ
'RUVVWHSSHGEHIRUHKLP
3HUKDSV,FDQEULQJXSDELWRIUHVHDUFKVLQFHWKLVLVDQDFDGHPLF
SURFHHGLQJ6KHVPLOHGVPRRWKO\,UDQDFURVVDQKLVWRULDQRIDERXWD
WKRXVDQG\HDUVDJRZKRKDGWHVWHGIRUWKHSRZHURISUD\HU
+DULVPRXWKPDGHDVXUSULVHGVNHSWLFDO7KHWKLQPDQGHPDQGHG+RZ
FRXOGRQHVFLHQWLILFDOO\
+HUHDVRQHGWKDWWKHSHRSOHPRVWSUD\HGIRUZHUHWKHPRVWIDPRXV<HW
WKH\KDGWREHH[DOWHGDERYHWKHIUD\
7KHHPSHURUV"7KHWKLQPDQZDVUDSW
([DFWO\$QGWKHLUOHVVHUIDPLO\PHPEHUV+HDQDO\]HGWKHLUPRUWDOLW\
UDWHV
+DULKDGQHYHUKHDUGWKLVEXWKLVLQQDWHVNHSWLFLVPGHPDQGHGGHWDLO
$OORZLQJIRUWKHLUEHWWHUPHGLFDOFDUHDQGVDIHW\IURPRUGLQDU\DFFLGHQWV"
'RUVJULQQHG2IFRXUVH3OXVWKHLUULVNRIDVVDVVLQDWLRQ
7KHWKLQPDQGLGQRWNQRZZKHUHWKLVOLQHRIDWWDFNZDVJRLQJEXWKLV
FXULRVLW\JRWWKHEHWWHURIKLP$QG"
'RUVVDLG+HIRXQGWKDWHPSHURUVGLHGHDUOLHUWKDQXQSUD\HGIRU
SHRSOH
7KHWKLQPDQORRNHGVKRFNHGDQJU\+DULDVNHG'RUV:KDWZDVWKHURRW
PHDQGHYLDWLRQ"
$OZD\VWKHVNHSWLF1RWVXIILFLHQWWRSURYHWKDWSUD\HUKDGDQDFWXDOO\
KDUPIXOHIIHFW
$K7KHFURZGVHHPHGWRILQGWKLVH[DPSOHRIWDJWHDPSXIIHU\
HQWHUWDLQLQJ%HVWWROHDYHWKHPZDQWLQJPRUH7KDQN\RXKHVDLGDQGWKH\
PHOWHGDZD\EHKLQGDVFUHHQRI6SHFLDOV
7KDWOHIWWKHFURZGLWVHOI&OHRQKDGXUJHGKLPWRPLQJOHZLWKWKHVH
IRONVXSSRVHGO\KLVEDVLFSRZHUEDVHWKHPHULWRFUDWV+DULZULQNOHGKLVQRVH
DQGQRQHWKHOHVVSOXQJHGLQ
,WZDVDPDWWHURIVW\OHKHUHDOL]HGDIWHUWKHILUVWWKLUW\PLQXWHV
+HKDGOHDUQHGHDUO\LQUXUDO+HOLFRQWRSODFHJUHDWVWRUHLQJRRG
PDQQHUVDQGFLYLOLW\$PRQJWKHDOHUWKDUGHGJHGDFDGHPLFVKHKDGIRXQGPDQ\
ZKRVHHPHGSRRUO\VRFLDOL]HGXQWLOKHUHDOL]HGWKDWWKH\ZHUHRSHUDWLQJRXW
RIDGLIIHUHQWFXOWXUHZKHUHFOHYHUQHVVPDWWHUHGPRUHWKDQJUDFH7KHLU
VXEWOHVKDGLQJVRIYRLFHFDUULHGDUURJDQFHDQGDVVXUDQFHLQSUHFDULRXV

EDODQFHZKLFKLQXQJXDUGHGPRPHQWVWLOWHGLQWRDFHUELFFXWWLQJMXGJPHQW
RIWHQZLWKRXWHYHQWKHDSSHDOLQJYHQHHURIZLW+HKDGWRPDNHKLPVHOI
UHPHPEHUWRVD\:LWKDOOGXHUHVSHFWDWWKHEHJLQQLQJRIDQDUJXPHQWDQG
HYHQWRPHDQLW
7KHQWKHUHZHUHWKHXQVSRNHQHOHPHQWV
$PRQJWKHIDVWWUDFNFLUFOHVERG\ODQJXDJHZDVHVVHQWLDODWDXJKW
VNLOO7KHUHZHUHFDUHIXOO\GHVLJQHGSRVHVIRU&RQILGHQFH,PSDWLHQFH
6XEPLVVLRQ IRXUVKDGLQJV 7KUHDW(VWHHP&R\QHVVDQGGR]HQVPRUH&RGLILHG
DQGXQGHUVWRRGXQFRQVFLRXVO\HDFKLQGXFHGDVSHFLILFGHVLUHGQHXURORJLFDO
VWDWHLQERWKVHOIDQGRWKHUV7KHUXGLPHQWVIRUDIXOOEORZQFUDIWOD\LQ
GDQFHSROLWLFVDQGWKHPDUWLDODUWV%\EHLQJV\VWHPDWLFPXFKPRUHFRXOGEH
FRQYH\HG$VZLWKODQJXDJHDGLFWLRQDU\KHOSHG
$QRQOLQHDUSKLORVRSKHURI*DOD[\ZLGHIDPHJDYH+DULDEHDPLQJVPLOH
ERG\ODQJXDJHVFUHDPLQJVHOIFRQILGHQFHDQGVDLG6XUHO\3URIHVVRU\RX
FDQQRWPDLQWDLQWKDW\RXUDWWHPSWWRLPSRUWPDWKLQWRKLVWRU\FDQVRPHKRZ
ZRUN"3HRSOHFDQEHZKDWWKH\ZLVK1RHTXDWLRQVZLOOPDNHWKHPRWKHUZLVH
,VHHNWRGHVFULEHWKDWVDOO
1RJUDQGWKHRU\RIKLVWRU\WKHQ"
$YRLGDGLUHFWGHQLDOKHWKRXJKW,ZLOONQRZ,PRQWKHULJKWWUDFN
ZKHQ,FDQVLPSO\GHVFULEHDELWRIKXPDQQDWXUH
$KEXWWKDWVFDUFHO\H[LVWVWKHPDQVDLGZLWKDVVXUDQFHDUPVDQG
FKHVWWXUQHGDGURLWO\
2IFRXUVHWKHUHVDKXPDQQDWXUH+DULVKRWEDFN
$SLW\LQJVPLOHDOD]\VKUXJ:K\VKRXOGWKHUHEH"
+HUHGLW\LQWHUDFWVZLWKHQYLURQPHQWWRWXJXVEDFNWRZDUGDIL[HGPHDQ
,WJDWKHUVSHRSOHLQDOOVRFLHWLHVDFURVVPLOOLRQVRIZRUOGVLQWRWKHQDUURZ
VWDWLVWLFDOFLUFOHWKDWZHPXVWFDOOKXPDQQDWXUH
,GRQWWKLQNWKHUHDUHHQRXJKJHQHUDOWUDLWV
3DUHQWFKLOGERQGLQJ'LYLVLRQRIODERUEHWZHHQWKHVH[HV
:HOOVXUHO\WKDWVFRPPRQDPRQJDOODQLPDOV,
,QFHVWDYRLGDQFH$OWUXLVPZHFDOOLWKXPDQLWDULDQLVPDWHOOLQJ
FOXHHK"WRZDUG RXUQHDUNLQ
:HOOWKRVHDUHMXVWQRUPDOIDPLO\
/RRNDWWKHGDUNVLGH6XVSLFLRQRIVWUDQJHUV7ULEDOLVPZLWQHVV
7UDQWRUVHLJKWKXQGUHG6HFWRUV+LHUDUFKLHVLQHYHQWKHVPDOOHVWJURXSV
IURPWKH(PSHURUVFRXUWWRDERZOLQJWHDP
6XUHO\\RXFDQWPDNHVXFKOHDSVVXFKVLPSOLVWLFJURWHVTXH
FRPSDULVRQV
,FDQDQGGR0DOHGRPLQDQFHJHQHUDOO\DQGZKHQUHVRXUFHVDUHVFDUFH
PDUNHGWHUULWRULDODJJUHVVLRQ
7KHVHDUHOLWWOHWUDLWV
7KH\OLQNXV7KHVRSKLVWLFDWHG7UDQWRULDQDQGDQ$UFDGLDQIDUPHUFDQ
VWLOOXQGHUVWDQGHDFKRWKHUVOLYHVIRUWKHVLPSOHUHDVRQWKDWWKHLUFRPPRQ
KXPDQLW\OLYHVLQWKHJHQHVWKH\VKDUHIURPPDQ\WHQVRIPLOOHQQLDDJR
7KLVRXWEXUVWZDVQRWUHFHLYHGZHOO)DFHVZULQNOHGPRXWKVSRXFKHGLQ
GLVDSSURYDO
+DULVDZKHKDGRYHUVWHSSHG:KDWVPRUHKHKDGQHDUO\H[SRVHG
SV\FKRKLVWRU\
<HWKHIRXQGLWKDUGWRQRWVSHDNIUDQNO\,QKLVYLHZWKHKXPDQLWLHV
DQGVRFLDOVFLHQFHVVKUDQNWRVSHFLDOL]HGEUDQFKHVRI ERWKPDWKHPDWLFVDQG
ELRORJ\+LVWRU\ELRJUDSK\DQGILFWLRQZHUHV\PSWRPV$QWKURSRORJ\DQG
VRFLRORJ\WRJHWKHUEHFDPHWKHVRFLRELRORJ\RIDVLQJOHVSHFLHV%XWKHFRXOG
QRWJHWDIHHOIRUKRZWRLQFOXGHWKDWLQWKHHTXDWLRQV+HKDGVSRNHQRXWKH
VDZVXGGHQO\EHFDXVHKHZDVIUXVWUDWHGE\KLVRZQODFNRIXQGHUVWDQGLQJ
6WLOOWKDWGLGQRWH[FXVHKLVVWXSLGLW\+HRSHQHGKLVPRXWKWRVPRRWK
RYHUWKHZDWHUV
+HVDZWKHDJLWDWHGPDQFRPLQJXSRQKLVOHIW0RXWKDZU\H\HVZKLWH

KDQGH[WHQGHGSRNLQJIRUZDUGDWXEHLQLWFKURPHGDQGVOHHNDQGZLWKD
SUHFLVHKROHDWWKHWLSDGDUNVSRWWKDWH[SDQGHGDVKHORRNHGDWLWXQWLOLW
VHHPHGOLNHWKH(DWHURI$OO7KLQJVWKDWOXUNHGDW*DODFWLF&HQWHULPPHQVH
'RUVKLWWKHPDQTXLWHH[SHUWO\6KHGHIOHFWHGWKHDUPXSMDEEHGKLPLQ
WKHWKURDWVWUXFNQH[WDWWKHEHOO\7KHQVKHWZLVWHGWKHDUPDQGIRUFHGKLP
LQWRDTXDUWHUWXUQKHUOHIWOHJFRPLQJDURXQGDQGFXWWLQJKLVIHHWIURP
EHQHDWKKLPKHUULJKWKDQGIRUFLQJWKHKHDGGRZQ
$QGWKH\VWUXFNWKHIORRUVROLGO\'RUVRQWRSWKHJXQVNLWWHULQJDZD\
DPRQJWKHVKRHVRIWKHFURZGZKLFKZDVIDOOLQJEDFNLQSDQLF
6SHFLDOVEORFNHGLQDURXQGKLPDQGKHVDZQRPRUH+HVKRXWHGWR'RUV
6FUHDPVDQGVKRXWVKDPPHUHGDWKLPIURPDOOVLGHV
0RUHEHGODP7KHQKHZDVFOHDURIWKH6SHFLDOVDQGWKHPDQZDVJHWWLQJ
XSDQG'RUVZDVVWDQGLQJKROGLQJWKHSLVWROVKDNLQJKHUKHDG7KHPDQZKR
KDGSRLQWHGLWVWUXJJOHGWRKLVIHHW
$UHFRUGLQJWXEHVKHVDLGLQGLVJXVW
:KDW"+DULFRXOGEDUHO\KHDULQWKHQRLVH
7KHPDQVOHIWDUPZDVVWLFNLQJRXWDWDZURQJDQJOHSODLQO\EURNHQ
,,DJUHHGZLWK\RXUHYHU\ZRUGWKHPDQFURDNHGRXWKLVIDFHDJKDVWO\
ZKLWH5HDOO\


+DULVIDWKHUKDGGHULVLYHO\UHIHUUHGWRPRVWSXEOLFDIIDLUVDVGXVW
XSVDELJFORXGRQWKHKRUL]RQDWLQ\VSHFNXQGHUQHDWK+LVOLSKDGFXUOHG
EDFNLQDIDUPHUVGLVGDLQIRUPDNLQJPRUHRIDWKLQJWKDQLWZDV
7KHLQFLGHQWDWWKH*UDQG,PSHULDO8QLYHUVLWLHV&ROORTX\KDGEHFRPHD
JUDQGGXVWXS)XOO\'GWKHVFDQGDO352)6:,)(62&.6)$1EXUJHRQHGZLWK
HDFKUHSOD\LQJ
&OHRQFDOOHGWVNWVNLQJDQGFRPPHQWLQJEURDGO\RQKRZZLYHVFRXOGEHD
EXUGHQLQKLJKRIILFH7KLVZLOOKXUW\RXUFDQGLGDF\,IHDUKHKDGVDLG
,PXVWGRVRPHPHQGLQJ
+DULGLGQRWUHSRUWWKLVWR'RUV&OHRQVKLQWZDVFOHDU,WZDVFRPPRQ
SUDFWLFHDPRQJ,PSHULDOFLUFOHVWRGLYRUFHRQJURXQGVRIJHQHUDO
XQVXLWDELOLW\ZKLFKPHDQWXQIDVKLRQDELOLW\,QPDWWHUVRIYDVWSRZHU
DSSHWLWHIRUPRUHRIWHQRYHUZKHOPHGDOORWKHUHPRWLRQVHYHQORYH
+HZHQWKRPHLUNHGE\WKLVFRQYHUVDWLRQWRILQG'RUVDWZRUNLQWKH
NLWFKHQ6KHKDGKHUDUPVRSHQOLWHUDOO\QRWLQJUHHWLQJ
7KHHSLGHUPLVKXQJORRVHDVLIVKHKDGSXOOHGDWLJKWJORYHKDOIZD\
RII9HLQVLQWHUODFHGZLWKWKHDUWLILFLDOQHXUDOQHWDQGVKHZDVZRUNLQJZLWK
WLQ\WRROVDPRQJWKHP6XSSOHVNLQSHHOHGEDFNLQDFXUYHGOLQHGRZQIURP
HOERZWRZULVWPRLVWFULPVRQDQGLQWULFDWHHOHFWURQLFV6KHZDVZRUNLQJRQ
WKHDXJPHQWHGZULVWDWKLQ\HOORZFROODUWKDWGLGQRWORRNDVWKRXJKLWFRXOG
WDNHWKUHHWLPHVWKH QRUPDOKXPDQVLPSDFW
7KDWIHOORZGDPDJHG\RX"
1R,GLGLWWRP\VHOIRUUDWKHURYHUGLGLW
$VSUDLQ"
6KHVPLOHGZLWKRXWKXPRU0\SLYRWVGRQWVSUDLQ7KHFROODUPRXQWV
GRQWPHQG,PUHSODFLQJWKHP
-REVOLNHWKLVLWVQRWWKHSDUWVLWVWKHODERU
6KHORRNHGDWKLPTXL]]LFDOO\DQGKHGHFLGHGQRWWRSXUVXHWKHMRNH+H
QRUPDOO\SXWIURPKLVPLQGWKHIDFWWKDWKLVWUXHORYHZDVDURERWRUPRUH
DFFXUDWHO\DKXPDQLIRUPYDVWO\WHFKQLFDOO\DVVLVWHGKXPDQURERWV\QWKHVLV
6KHKDGFRPHWRKLPWKURXJK5'DQHHO2OLYDZWKHDQFLHQWSRVLWURQLF
URERWZKRKDGVDYHG+DULZKHQKHILUVWFDPHWR7UDQWRUDQGUDQDIRXORIQDVW\
SROLWLFDOIRUFHV6KHKDGEHHQDVVLJQHGDWILUVWDVDERG\JXDUG+HKDGNQRZQ
ZKDWVKHZDVIURPWKHVWDUWDW OHDVWDSSUR[LPDWHO\EXWWKDWGLGQRWSUHYHQW
KLPIURPIDOOLQJLQORYHZLWKKHU,QWHOOLJHQFHFKDUDFWHUFKDUPDVLPPHULQJ

VH[XDOLW\WKHVHZHUHQRWSXUHO\KXPDQIDFHWVKHKDGOHDUQHGE\GLUHFW
H[DPSOH
+HJRWKHUDGULQNDVVKHZRUNHGELGLQJKLVWLPH+HKDGFHDVHGWREH
DPD]HGE\KHUUHSDLUZRUNRIWHQFDUULHGRXWRQDQXWWHUO\XQVDQLWL]HGILHOG
7KHUHZHUHDQWLPLFURELDOPHWKRGVDYDLODEOHWRWKHKXPDQLIRUPURERWVWKDWFRXOG
QRWZRUNIRURUGLQDU\KXPDQVVKHKDGVDLG+HKDGQRLGHDKRZWKLVFRXOGEH
6KHGLVFRXUDJHGIXUWKHUGLVFXVVLRQRIWHQGHIOHFWLQJKLPZLWKSDVVLRQ+HKDG
WRDGPLWWKDWDVDSOR\WKLVZDVFRPSOHWHO\HIIHFWLYH
6KHUROOHGKHUVNLQEDFNLQWRSODFHJULPDFLQJDWWKHSDLQ6KHFRXOG
VKXWRIIZKROHVHFWLRQVRIKHUVXSHUILFLDOQHUYRXVV\VWHPKHNQHZEXWNHSWD
IHZVWUDQGVDOHUWDVDGLDJQRVWLF7KHWDEVVHOIVHDOHGZLWKSRSVDQGSXUUV
/HWVVHH6KHSDXVHGIHHOLQJHDFKZULVWLQWXUQ7ZRTXLFNVQDSV
7KH\ORFNLQILQH
0RVWSHRSOH\RXNQRZZRXOGILQGWKLVVLJKWTXLWHXQVHWWOLQJ
7KDWVZK\,GRQWGRLWRQWKHZD\WRZRUN
9HU\SXEOLFVSLULWHGRI\RX
7KH\ERWKNQHZVKHZRXOGEHKRXQGHGGRZQLIWKHUHZHUHDQ\VXVSLFLRQRI
KHUWUXHQDWXUH5RERWVRIDGYDQFHGFDSDELOLW\KDGEHHQLOOHJDOIRUPLOOHQQLD
7LNWRNVZHUHDFFHSWDEOHSUHFLVHO\EHFDXVHWKH\ZHUHORZJUDGHLQWHOOLJHQFHV
ULJRURXVO\KHOGEHORZWKHWKUHVKROGRIOHJDOO\GHILQHGVHQWLHQFH9LRODWLQJ
WKRVHVWDQGDUGVLQPDQXIDFWXUHZDVDFDSLWDOFULPHDQ,PSHULDOYLRODWLRQQR
H[FHSWLRQV$QGVWURQJDQFLHQWHPRWLRQVEDFNHGXSWKHODZWKH-XQLQ6HFWRU
ULRWVKDGSURYHGWKDW
1XPHULFDOVLPXODWLRQVZHUHVLPLODUO\UHVWULFWHG7KDWZDVZK\WKH
9ROWDLUHDQG-RDQVLPVGHYHORSHGE\WKH1HZ5HQDLVVDQFHKRWKHDGVRQ6DUN
KDGEHHQFDUHIXOO\WDLORUHGWRVTXHH]HWKURXJKDOJRULWKPLFORRSKROHV
$SSDUHQWO\WKDW0DUTIHOORZDW$UWLILFH$VVRFLDWHVKDGVRXSHGXSWKH9ROWDLUH
DWWKHODVWPLQXWH6LQFHWKHVLPZDVWKHQHUDVHGWKHYLRODWLRQKDGHVFDSHG
GHWHFWLRQ
+DULGLGQRWOLNHKDYLQJHYHQDVOLJKWFRQQHFWLRQWRFULPHEXW KHQRZ
UHDOL]HGWKDWWKLVZDVIRROLVKQHVV$OUHDG\KLVHQWLUHOLIHUHYROYHGDURXQG
'RUVDKLGGHQSDULDK
,PJRLQJWRZLWKGUDZIURPWKH)LUVW0LQLVWHUEXVLQHVVKHVDLG
GHFLVLYHO\
6KHEOLQNHG0H
6KHZDVDOZD\VTXLFN<HV
:HKDGDJUHHGWKDWWKHULVNRILQFUHDVHGVFUXWLQ\ZDVZRUWKJDLQLQJ
VRPHSRZHU
7RSURWHFWSV\FKRKLVWRU\%XW,H[SHFWHGYHU\OLWWOHRIWKHVSRWOLJKW
WRIDOOXSRQ\RX1RZ
,DPDQHPEDUUDVVPHQW
&RPLQJLQGRZQVWDLUVWKHUHZHUHDGR]HQ'VQRXWVSRLQWLQJDWPH
7KH\UHZDLWLQJIRU\RX
,ZLOOVWD\KHUHWKHQ
)RUKRZORQJ"
7KH6SHFLDOVFDQWDNHPHRXWWKURXJKDQHZHQWUDQFH7KH\YHFXWRQH
DQGLQVWDOOHGDQDJUDYVKDIW
<RXFDQWDYRLGWKHPIRUHYHUGDUOLQJ
6KHJRWXSDQGHPEUDFHGKLP(YHQLIWKH\ILQGPHRXW,FDQJRDZD\
,I\RXUHOXFN\DQGHVFDSH(YHQLI\RXGR,FDQWOLYHZLWKRXW\RX,
ZRQW
,FRXOGEHWUDQVIRUPHG
$QRWKHUERG\"
$GLIIHUHQWRQH6NLQFRUQHDVVRPHQHXUDOVLJQDWXUHVFKDQJHG
)LOHWKHVHULDO QXPEHUVRIIDQGVHQG\RXEDFN"
6KHVWLIIHQHGLQKLVDUPV<HV
:KDWFDQW\RXUNLQGGR"

:HFDQQRWLQYHQWSV\FKRKLVWRU\
+HZKLUOHGDZD\IURPKHULQIUXVWUDWLRQDQGVPDFNHGKLVSDOPDJDLQVWD
ZDOO'DPQLWQRWKLQJLVDVLPSRUWDQWDVXV
,IHHOWKHVDPH%XWQRZ,WKLQNLWLVHYHQPRUHLPSRUWDQWIRU\RXWR
UHPDLQDFDQGLGDWHIRU)LUVW0LQLVWHU
:K\"+HSDFHGDURXQGWKHLUOLYLQJURRPH\HVGDUWLQJ
<RXDUHDSOD\HUIRUYHU\KLJKVWDNHV:KRHYHUZLVKHVWRDVVDVVLQDWH
\RX
/DPXUN&OHRQEHOLHYHV
ZLOOSUREDEO\VHHWKDWPHUHO\ZLWKGUDZLQJ\RXUFDQGLGDF\LVQRILUP
VROXWLRQ7KH(PSHURUFRXOGUHLQWURGXFH\RXLQWRWKHJDPHDWDQ\ODWHUWLPH
,GRQWOLNHEHLQJWUHDWHGDVDFKHVVSLHFH
$NQLJKW"\HV,FDQVHH\RXWKDW ZD\'RQRWIRUJHWWKDWWKHUHDUH
RWKHUVXVSHFWVIDFWLRQVZKLFKPD\ZLVK\RXRXWRIWKHZD\
6XFKDV"
7KH$FDGHPLF3RWHQWDWH
%XWVKHVDVFKRODUOLNHPH
:DV6KHLVQRZDSOD\HURQWKHFKHVVERDUG
1RWWKHTXHHQ,KRSH
'RUVNLVVHGKLPOLJKWO\,VKRXOGPHQWLRQWKDWP\IHUUHWSURJUDPV
WXUQHGXSDSODXVLELOLW\PDWUL[IRU/DPXUNVEHKDYLRUEDVHGRQKLVSDVW+H
KDVHOLPLQDWHGDWOHDVWKDOIDGR]HQULYDOVRQKLVULVHWRWKHWRS+HLV
VRPHWKLQJRIDWUDGLWLRQDOLVWLQPHWKRGDVZHOO
0\WKDWVFRPIRUWLQJ
6KHJDYHKLPDQRGGSHQVLYHJODQFH+LVULYDOVZHUHDOONQLIHG7KH
FODVVLFGLVSDWFKRIKLVWRULFDOLQWULJXH
,ZRXOGQWVXVSHFW/DPXUNWRKDYHVXFKDQH\HIRURXU,PSHULDO
KHULWDJH
+HLVDFODVVLFLVW,QKLVYLHZ\RXDUHDSDZQRQHEHVWVZHSWIURP
WKHERDUG
$UDWKHUEORRGOHVVZD\WRSXWLW
,DPWDXJKWDQGEXLOWWRDVVHVVDQGDFWFRROO\
+RZGR\RXUHFRQFLOH\RXUDELOLW\LQIDFWOHWVQRWSXWWRRILQHD
SRLQWRQLW\RXUUHOLVKDWWKHSURVSHFWRINLOOLQJDSHUVRQLQP\GHIHQVH"
7KH=HURWK/DZ
8P+HUHFLWHG+XPDQLW\DVDZKROHLVSODFHGDERYHWKHIDWHRID
VLQJOHKXPDQ
,GRIHHOSDLQIURP)LUVW/DZLQWHUDFWLRQ
6RWKH)LUVW/DZQRZPRGLILHGLV$URERWPD\QRWLQMXUHDKXPDQ
EHLQJRUWKURXJKLQDFWLRQDOORZDKXPDQEHLQJWRFRPHWRKDUPXQOHVVWKLV
ZRXOGYLRODWHWKH=HURWK/DZRI5RERWLFV"
([DFWO\
7KLVLVDQRWKHUJDPH\RXSOD\:LWKYHU\WRXJKUXOHV
,WLVDODUJHUJDPH
$QGSV\FKRKLVWRU\LVDSRWHQWLDOQHZVHWRIJDPHSODQV"
,QDZD\+HUYRLFHVRIWHQHGDQGVKHHPEUDFHGKLP<RXVKRXOGQRW
WURXEOH\RXUVHOIVR:KDWZHKDYHLVDSULYDWHSDUDGLVH
%XWWKHGDPQHGJDPHVWKH\DOZD\VJRRQ
7KH\PXVW
+HNLVVHG KHUORQJLQJO\EXWVRPHWKLQJLQVLGHKLPVHHWKHGDQGVSXQDQ
DUPDWXUHZKLUULQJIUXLWOHVVO\LQVXUURXQGLQJGDUNQHVV


<XJRZDVZDLWLQJLQKLVRIILFHWKHQH[WPRUQLQJ)DFHIOXVKHGZLGH
H\HGKHGHPDQGHG:KDWFDQ\RXGR"
8KDERXWZKDW"

7KH QHZV7KH6DIHJXDUGVVWRUPHGWKH%DVWLRQ
8KRK+DULYDJXHO\UHFDOOHGWKDWD'DKOLWHIDFWLRQKDGVWDJHGD
PLQRUUHYROWDQGKROHGXSLQDUHGRXEW1HJRWLDWLRQVKDGGUDJJHGRQ<HVDQG
<XJRKDGWROGKLPDERXWLWVHYHUDOWLPHV,WVDORFDO7UDQWRULDQLVVXH
LVQWLW"
7KDWVWKHZD\ZHNHSWLW<XJRVKDQGVIOHZLQHODERUDWHJHVWXUHV
OLNHELUGVWDNLQJIUHQ]LHGIOLJKW7KHQWKH6DIHJXDUGVFDPHLQ1RZDUQLQJ
.LOOHGRYHUIRXUKXQGUHG%OHZHPDSDUWEODVWHUVRQIXOOQRZDUQLQJ
$VWRQLVKLQJ+DULVDLGLQZKDWKHKRSHGZDVDV\PSDWKHWLFWRQH
,QIDFWKHGLGQRWFDUHDPLFURJUDPIRURQHVLGHRIWKLVDUJXPHQWRUWKH
RWKHUDQGGLGQRWNQRZWKHDUJXPHQWVDQ\ZD\+HKDGQHYHUFDUHGIRUWKH
ZRUOGVGD\WRGD\WXUEXOHQFHZKLFKDJLWDWHGWKH PLQGZLWKRXWWHDFKLQJ
DQ\WKLQJ7KHZKROHSRLQWRISV\FKRKLVWRU\ZKLFKHPHUJHGIURPKLV
SHUVRQDOLW\DVPXFKDVKLVDQDO\WLFDELOLW\ZDVWRVWXG\FOLPDWHDQGLJQRUH
ZHDWKHU
&DQW\RXGRVRPHWKLQJ"
:KDW"
3URWHVWWRWKH(PSHURU
+HZLOOLJQRUH PH7KLVLVD7UDQWRULDQLVVXHDQG
7KLVLVDQLQVXOWWR\RXWRR
,WFDQWEH7RQRWDSSHDUWRWDOO\RXWRILWKHDGGHG,YH
GHOLEHUDWHO\NHSWZHOODZD\IURPWKHLVVXH
%XW/DPXUNGLGWKLV
7KDWVWDUWOHGKLP:KDW"/DPXUNKDVQRSRZHURQ7UDQWRU+HVDQ
,PSHULDO5HJHQW
&PRQ+DULQRERG\EHOLHYHVWKDWROGVHSDUDWLRQRISRZHUVVWXII,W
EURNHGRZQORQJDJR
+DULDOPRVWVDLG,WGLG"EXWMXVWLQWLPHUHDOL]HGWKDW<XJRZDV
ULJKW+HKDGVLPSO\QRWDGGHGXSWKHHIIHFWVRIWKH ORQJVORZHURVLRQLQ
WKH,PSHULDOVWUXFWXUHV7KRVHHQWHUHGDVIDFWRUVRQWKHULJKWKDQGVLGHRI
WKHHTXDWLRQVEXWKHQHYHUWKRXJKWRIWKHGHFD\LQVROLGORFDOWHUPV6R
\RXWKLQNLWVDPRYHWRJDLQLQIOXHQFHRQWKH+LJK&RXQFLO"
0XVWEH <XJRIXPHG7KRVH5HJHQWVWKH\GRQWOLNHXQUXO\IRON
OLYLQQHDUHP7KH\ZDQW7UDQWRUQLFHDQGRUGHUO\HYHQLISHRSOHJHW
WUDPSOHG
+DULYHQWXUHG7KHUHSUHVHQWDWLRQLVVXHDJDLQLVLW"
'DPQULJKW:HJRW'DKOLWHVDOORYHU0XVFOH6KRDOV6HFWRU%XWFDQZH
JHWDUHSUHVHQWDWLYH"+HOOQR*RWWREHJDQGSOHDG
,,ZLOOGRZKDW,FDQ+DULKHOGXSKLVKDQGVWRFXWRIIWKH
WLUDGH
7KH(PSHURUKHOOVWUDLJKWHQWKLQJVRXW
+DULNQHZIURPGLUHFWREVHUYDWLRQWKDWWKH(PSHURUZRXOGGRQR VXFK
WKLQJ+HFDUHGQRWKLQJRIKRZ7UDQWRUZDVUXQDVORQJDVKHFRXOGVHHQR
EXUQLQJGLVWULFWVIURPWKHSDODFH&OHRQKDGRIWHQUHPDUNHG,DP(PSHURURI
DJDOD[\QRWDFLW\
<XJROHIWDQG+DULVGHVNFKLPHG,PSHULDO6SHFLDOVFDSWDLQWRVHH
\RXVLU
,WROGWKHPWRUHPDLQRXWVLGH
+HUHTXHVWVDXGLHQFHEHDULQJDPHVVDJH
+DULVLJKHG+HKDGPHDQWWRJHWVRPHWKLQNLQJGRQHWRGD\
7KHFDSWDLQHQWHUHGVWLIIO\DQGUHIXVHGDFKDLU,DPKHUHWR
UHVSHFWIXOO\IRUZDUGWKHUHFRPPHQGDWLRQVRIWKH6SHFLDOV%RDUG$FDGHPLFLDQ
$OHWWHUZRXOGVXIILFH,QIDFWGRWKDWVHQGPHDQRWH,KDYHZRUN
WR
6LUPRVWUHVSHFWIXOO\,PXVWGLVFXVVWKLV
+DULVDQNLQWRKLVFKDLUDQGZDYHGSHUPLVVLRQ7KHPDQORRNHG
XQFRPIRUWDEOHVWDQGLQJVWLIIO\DVKHVDLG7KHERDUGUHTXHVWVWKDWWKH

$FDGHPLFLDQVZLIHQRWDFFRPSDQ\KLPWRVWDWHIXQFWLRQV
$KVRVRPHRQHKDV\LHOGHGWRSUHVVXUH
,WLVIXUWKHUGLUHFWHGWKDW\RXUZLIHQRWEHDOORZHGLQWRWKHSDODFHDW
DOO
:KDW"7KDWVHHPVH[WUHPH
,DPVRUU\WREHDUVXFKDPHVVDJHVLU,ZDVWKHUHDQG,WROGWKH
ERDUGWKDWWKHODG\KDGJRRGUHDVRQWREHFRPHDODUPHG
$QGWREUHDNWKHIHOORZVDUP
7KHFDSWDLQDOPRVWDOORZHGKLPVHOIDVPLOH*RWWRDGPLWVKHVIDVWHU
WKDQDQ\ERG\,YHHYHUVHHQ
$QG\RXUHZRQGHULQJZK\DUHQW\RX":KRZDVWKHIHOORZ"
7KHFDSWDLQVEURZIXUURZHG/RRNVWREHD6SLUDO$FDGHPLFLDQRQH
JUDGHDERYH\RXVLU%XWVRPHVD\KHVPRUHDSROLWLFDOW\SH
+DULZDLWHGEXWWKHPDQVDLGQRPRUHMXVWORRNHGDVWKRXJKKHZDQWHG
WR$OOLHGZLWKZKDWIDFWLRQ"
0LJKWEHWKDW/DPXUNVLU
$Q\HYLGHQFH"
1RVVLU
+DULVLJKHG3ROLWLFVZDVQRWRQO\DQLQH[DFWFUDIWLWVHOGRPKDGDQ\
UHOLDEOHGDWDHLWKHU9HU\ZHOO0HVVDJHUHFHLYHG
7KHFDSWDLQOHIWTXLFNO\ZLWKYLVLEOHUHOLHI%HIRUH+DULFRXOGZDYH
KLVFRPSXWHULQWROLIHDGHOHJDWLRQIURPKLVRZQIDFXOW\VKRZHGXS7KH\
ILOHGLQVLOHQWO\WKHSRUWDOFUDFNOLQJDVLWLQVSHFWHGHDFKRIWKHP+DUL
FDXJKWKLPVHOIVPLOLQJDWWKHSURFHGXUH,IWKHUH ZDVDSURIHVVLRQOHDVW
OLNHO\WR\LHOGDQDVVDVVLQLWKDGWREHWKHPDWKLVWV
:HDUHKHUHWRVXEPLWRXUFRQVLGHUHGRSLQLRQD3URIHVVRU$DQJRQVDLG
IRUPDOO\
'RVR +DULVDLG1RUPDOO\KHZRXOGGHSOR\KLVVNLPS\VNLOOVDQGGRD
ELWRIVRFLDOPHQGLQJKHKDGEHHQQHJOHFWLQJXQLYHUVLW\EXVLQHVVODWHO\
VWHDOLQJWLPHIURPEXUHDXFUDWLFFKRUHVWRGHYRWHWRHTXDWLRQV
$DQJRQVDLG)LUVWUXPRUVRIDWKHRU\RIKLVWRU\KDYHEURXJKWVFRUQ
WRRXUGHSDUWPHQW:H
7KHUHLVQRVXFKWKHRU\2QO\VRPHGHVFULSWLYHDQDO\VLV
$QRXWULJKWGHQLDOFRQIXVHG$DQJRQEXWKHSORZHGDKHDG8KVHFRQGZH
GHSORUHWKHDSSDUHQWFKRLFHRI\RXUDVVLVWDQW<XJR$PDU\ODVGHSDUWPHQW
KHDGVKRXOG\RXUHVLJQ,WLVDQDIIURQWWRVHQLRUIDFXOW\YDVWO\VHQLRU
DERYHDMXQLRUPDWKLVWRIVKDOOZHVD\PLQLPDOVRFLDOEHDULQJ
0HDQLQJ"+DULVDLGRPLQRXVO\
:HGRQRWEHOLHYHSROLWLFVVKRXOGHQWHULQWRDFDGHPLFGHFLVLRQV7KH
LQVXUUHFWLRQRI'DKOLWHVZKLFK$PDU\OKDVYRFDOO\VXSSRUWHGDQGZKLFKKDV
QRZEHHQSXWGRZQRQO\WKURXJK,PSHULDOUHVROYHDQGDFWXDODUPHGIRUFHPDNHV
KLPXQVXLWDEOH
(QRXJK<RXUWKLUGSRLQW
7KHUHLVWKHPDWWHURIWKHDVVDXOWXSRQDPHPEHURIRXUSURIHVVLRQ
$PHPEHURKWKHIHOORZP\ZLIH"
,QGHHGDQLQGLJQLW\ZLWKRXWSDUDOOHODQRXWUDJHE\DPHPEHURI\RXU
IDPLO\,WPDNHV\RXUSRVLWLRQKHUHXQWHQDEOH
,IVRPHRQHKDGSODQQHGWKHLQFLGHQWWKH\ZHUHFHUWDLQO\JHWWLQJWKHLU
PLOHDJHRXWRILW,UHMHFWWKDW
3URIHVVRU$DQJRQVH\HVEHFDPHIOLQW\7KHRWKHUIDFXOW\KDGEHHQ
VKXIIOLQJDURXQGXQHDV\DQGQRZZHUHEXQFKHGEHKLQGKLP+DULKDGQRGRXEWV
DERXWZKRWKLVJURXSZDQWHGWREHWKHQH[WFKDLUPDQ,VKRXOGWKLQNWKDWD
YRWHRIQR FRQILGHQFHE\WKHIXOOIDFXOW\LQDIRUPDOPHHWLQJ
'RQWWKUHDWHQPH
,DPPHUHO\SRLQWLQJRXWWKDWZKLOH\RXUDWWHQWLRQLVGLUHFWHG
HOVHZKHUH
7KH)LUVW0LQLVWHUVKLS

\RXFDQVFDUFHO\EHH[SHFWHGWRFDUU\RXW\RXUGXWLHV
6NLSLW7RKROGDIRUPDOPHHWLQJWKHFKDLUPDQPXVWFDOORQH
7KHEXQFKRISURIHVVRUVUXVWOHGEXWQRERG\VDLGDQ\WKLQJ
$QG,ZRQW
<RXFDQWJRIRUORQJZLWKRXWFDUU\LQJRXWEXVLQHVVZKLFKUHTXLUHVRXU
FRQVHQW$DQJRQVDLGVKUHZGO\
,NQRZ/HWVVHHKRZORQJWKDWFDQEH
<RXUHDOO\PXVWUHFRQVLGHU:H
2XW
:KDW"<RXFDQQRW
2XW*R
7KH\ZHQW


,WLVQHYHUHDV\WRGHDOZLWKFULWLFLVPHVSHFLDOO\ZKHQWKHUHLVHYHU\
FKDQFHWKDWLWPLJKWEHULJKW
$VLGH IURPWKHHWHUQDOPDQHXYHULQJIRUSRVLWLRQDQGVWDWXV+DULNQHZ
WKDWKLVIHOORZPHULWRFUDWVIURPWKH$FDGHPLF3RWHQWDWHWRWKHPHPEHUVRIKLV
RZQGHSDUWPHQWZLWKOHJLRQVLQEHWZHHQKDGGHHSO\IHOWJURXQGVIRUREMHFWLQJ
WRZKDWKHZDVGRLQJ
7KH\KDGFDXJKWDZKLIIRISV\FKRKLVWRU\ZDIWHGE\UXPRU7KDWDORQH
SXWWKHLUKDFNOHVXSVWLIIDQGVHQVLWLYH7KH\FRXOGQRWDFFHSWWKH
SRVVLELOLW\WKDWKXPDQLW\FRXOGQRWFRQWUROLWVRZQIXWXUHWKDWKLVWRU\ZDV
WKHUHVXOWRIIRUFHVDFWLQJEH\RQGWKHKRUL]RQVRI PHUHPRUWDOPHQ&RXOGWKH\
DOUHDG\EHVQLIILQJDWDWUXWK+DULNQHZIURPHODERUDWHGHFDGHVORQJVWXG\
WKDWWKH(PSLUHKDGHQGXUHGEHFDXVHRILWVKLJKHUPHWDQDWXUHQRWWKHYDOLDQW
DFWVRILQGLYLGXDOVRUHYHQRIZRUOGV"
3HRSOHRIDOOVWULSHVEHOLHYHGLQKXPDQVHOIGHWHUPLQDWLRQ8VXDOO\WKH\
VWDUWHGIURPDJXWIHHOLQJWKDWWKH\DFWHGRQWKHLURZQWKDWWKH\KDGUHDFKHG
WKHLURSLQLRQVRQWKHEDVLVRILQWHUQDOUHDVRQLQJWKDWLVWKH\DUJXHGIURP
WKHSUHPLVHVRIWKHSDUDGLJPLWVHOI7KLVZDVFLUFXODURIFRXUVHEXWWKDW
GLGQRWPDNHVXFKDUJXPHQWVZURQJRUHYHQLQHIIHFWXDO$VSHUVXDVLRQWKH
IHHOLQJRIEHLQJLQFRQWUROZDVSRZHUIXO(YHU\RQHZDQWHGWREHOLHYHWKH\ZHUH
PDVWHUVRIWKHLURZQIDWH/RJLFKDGQRWKLQJWRGRZLWKLW
$QGZKRZDVKHWRVD\WKH\ZHUHZURQJ"
+DUL"
,WZDV<XJRORRNLQJDELWWLPLG&RPHLQIULHQG
:HJRWDIXQQ\UHTXHVWMXVWDPLQXWHDJR6RPHUHVHDUFKLQVWLWXWH,
QHYHUKHDUGRIRIIHULQXVVLJQLILFDQWPRQH\
)RUZKDW"0RQH\ZDVDOZD\VKDQG\
,QUHWXUQIRUWKHEDVHILOHRQWKRVHVLPVIURP6DUN
9ROWDLUHDQG-RDQ"7KHDQVZHULVQR:KRZDQWVWKHP"
'XQQR:HJRWHPDOOILOHGDZD\7KHRULJLQDOV
)LQGRXWZKRVDVNLQJ
,WULHG&DQWWUDFHWKHSURPSW
8PPP7KDWVRGG
7KDWVZK\,WKRXJKW ,GWHOO\RX6PHOOVIXQQ\
.HHSXSDWUDFLQJSURJUDPLQFDVHWKH\DVNDJDLQ
<HVVLU$QGDERXWWKH'DKOLWH%DVWLRQ
*LYHLWDUHVW
,PHDQORRNDWKRZWKH,PSHULDOVVTXDVKHGWKDW-XQLQPHVV
+DULOHW<XJRJRRQ+HKDGORQJDJRPDVWHUHGWKHDFDGHPLFDUWRI
DSSHDULQJWRSD\UDSWDWWHQWLRQZKLOHKLVPLQGZRUNHGDVSLUDODUPDZD\
+HNQHZKHZRXOGKDYHWRVSHDNWRWKH(PSHURUDERXWWKH'DKOLWHPDWWHU
DQGQRWRQO\WRFRXQWHU/DPXUNVPRYHDQDXGDFLRXVRQHZLWKLQWKH
WUDGLWLRQDOO\LQYLRODWHUHDOPRI7UDQWRU$TXLFNEORRG\VROXWLRQWRDWRXJK

LVVXH&OHDQEUXWDO
7KH'DKOLWHVKDGDFDVHWKH\ZHUHXQGHUUHSUHVHQWHG$QGXQSRSXODU$QG
UHDFWLRQDU\
7KHIDFWWKDW'DKOLWHVH[FHSWIRUSURGLJLHVOLIWHGXSE\WKHVFUXIIRI
WKHLUQHFNOLNH<XJRZHUHKRVWLOHWRWKHXVXDOLQVWLQFWVRIDVFLHQWLILF
PLQGPDGHQRGLIIHUHQFH
,QIDFW+DULZDVEHJLQQLQJWRGRXEWZKHWKHUWKHVWLIIIRUPDO
VFLHQWLILFHVWDEOLVKPHQWZDVZRUWK\RIKLJKUHJDUGDQ\ORQJHU$OODURXQGKLP
KHVDZFRUUXSWLRQRIWKHLPSDUWLDOLW\RIVFLHQFHIURPWKHERRQVPDQVKLS
QHWZRUNLQJWRWKHFXUU\LQJRI,PSHULDOVFUDSVZKLFKSDVVHGIRUDSURPRWLRQ
V\VWHP
-XVW\HVWHUGD\KHKDGEHHQYLVLWHGE\D'HDQRI$GMXVWPHQWVZKRKDG
DGYLVHGZLWKRLO\ORJLFWKDW+DULXVHVRPHRIKLV,PSHULDOSRZHUWRFRQIHUD
ERRQXSRQDSURIHVVRUZKRKDGGRQHYHU\OLWWOHZRUNEXWZKRKDGIDPLO\WLHV
WRWKH+LJK&RXQFLO
7KHGHDQKDGVDLGTXLWHVLQFHUHO\'RQW\RX WKLQNLWLVLQWKHEHWWHU
LQWHUHVWVRIWKHXQLYHUVLW\WKDW\RXJUDQWDVPDOOERRQWRRQHZLWK
LQIOXHQFH":KHQ+DULGLGQRWKHQRQHWKHOHVVFDOOHGWKHIHOORZWRWHOOKLP
ZK\
7KHGHDQZDVDVWRQLVKHGZLWKVXFKKRQHVW\2QO\ODWHUGLG+DULGHFLGH
WKDWWKH GHDQZDVULJKWZLWKLQKLVRZQORJLFV\VWHP,IERRQVZHUHPHUH
EHQHILWVVLPSOHODUJHVVWKHQZK\QRWFRQIHUWKHPZKROO\RQSROLWLFDO
JURXQGV",WZDVDQDOLHQZD\RIWKLQNLQJEXWFRQVLVWHQWKHKDGWRDGPLW
+DULVLJKHG:KHQ<XJRSDXVHGLQKLVYHKHPHQWWLUDGH+DULVPLOHG1R
ZURQJUHVSRQVH$ZRUULHGIURZQWKHUHWKDWGLGLW<XJRODXQFKHGEDFNLQWR
UDSLGWDONDUPVWDNLQJZLQJHSLWKHWVVWDFNHGWRLPSUREDEOHKHLJKWV
+DULUHDOL]HGWKDWWKHPHUHH[SRVXUHWRSROLWLFVDVLWWUXO\ZDVWKH
EUXWDOVWUXJJOHRIEOLQGVZDUPVLQVKDGRZKDGUDLVHGGRXEWVDERXWKLVRZQ
UDWKHUVPXJSRVLWLRQV:DVWKHVFLHQFHKHKDGVRILUPO\EHOLHYHGLQEDFNRQ
+HOLFRQWUXO\DVXVHIXOWRSHRSOHOLNHWKH'DKOLWHVDVKHLPDJLQHG"
6RKLVPXVLQJFDPHDURXQGWRKLVHTXDWLRQV&RXOGWKH(PSLUHHYHUEH
GULYHQE\UHDVRQDQGPRUDOGHFLVLRQUDWKHUWKDQSRZHUDQGZHDOWK"7KHRFUDFLHV
KDGWULHGDQGIDLOHG6FLHQWRFUDFLHVUDWKHUPRUHUDUHO\KDGEHHQWRRULJLG
WRODVW
DQG,VDLGVXUH+DULFDQGRWKDW<XJRILQLVKHG
8K ZKDW"
%DFNWKH$OSKRVRSODQIRU'DKOLWHUHSUHVHQWDWLRQRIFRXUVH
,ZLOOWKLQNDERXWLW+DULVDLGWRFRYHU0HDQZKLOHOHWVKHDUD
UHSRUWRQWKDWORQJHYLW\DQJOH\RXZHUHSXUVXLQJ
,JDYHLWWRWKUHHRIWKRVHQHZUHVHDUFKDVVLVWDQWV<XJRVDLG
VREHUO\KLV'DKOLWHHQHUJLHVH[SHQGHG7KH\FRXOGQWPDNHVHQVHRILW
,I\RXUHDORXV\KXQWHUWKHZRRGVDUHDOZD\VHPSW\
<XJRVVWDUWOHGORRNPDGH+DULZRQGHULIKHZDVJHWWLQJDELWFUXVW\
3ROLWLFVZDVWDNLQJLWVWROO
6R,ZRUNHGWKHORQJHYLW\IDFWRULQWRWKHHTXDWLRQVMXVWWRVHH+HUH
KHVOLGDQHOOLSVRLGDOGDWDFRUHLQWR+DULVGHVNUHDGHUZDWFKZKDW
KDSSHQV
2QHSHUVLVWHQWKHULWDJHRISUHDQWLTXLW\ZDVWKHVWDQGDUG*DODFWLF<HDU
XVHGE\DOOZRUOGVRIWKH,PSHULXPLQRIILFLDOEXVLQHVV+DULKDGDOZD\V
ZRQGHUHG:DVLWDVLJQDWXUHRI(DUWKVRUELWDOSHULRG":LWKLWVWZHOYHEDVHG
\HDURIWZHOYHPRQWKVHDFKRIWZHQW\HLJKWGD\VLWVXJJHVWHGDVFDQGLGDWH
ZRUOGVDPHUHIURPWKHPLOOLRQRIWKH(PSLUH<HWVSLQV
SUHFHVVLRQVDQGVDWHOOLWHUHVRQDQFHVSHUWXUEHGDOOSODQHWDU\SHULRGV1RWD
VLQJOHZRUOGRIWKRVHILWWKH*(FDOHQGDUH[DFWO\2YHU
FDPHTXLWHFORVH
<XJRVWDUWHGH[SODLQLQJKLVUHVXOWV2QHFXULRXVIHDWXUHRI(PSLUH
KLVWRU\ZDVWKHKXPDQOLIHVSDQ,WZDVVWLOODERXWO\HDUVEXWVRPHHDUO\

ZULWLQJVVXJJHVWHGWKDWWKHVHZHUHQHDUO\WZLFHDVORQJDVWKHSULPRUGLDO
\HDU DVRQHWH[WKDGLW ZKLFKZDVQDWXUDOWRKXPDQV,IVRSHRSOHOLYHG
QHDUO\WZLFHDVORQJDVLQSUH,PSHULDOHUDV,QGHILQLWHH[WHQVLRQRIWKH
OLIHVSDQZDVLPSRVVLEOHELRORJ\DOZD\VZRQLQWKHHQG1HZPDODGLHVPRYHG
LQWRWKHQLFKHSURYLGHGE\WKHKXPDQERG\
,JRWWKHEDVLFVRQWKLVIURP'RUVVKDUSODG\<XJRVDLG:DWFKWKLV
GDWDIODVK&XUYHVSURMHFWLRQVVOLGLQJVKHHWVRIFRUUHODWLRQV
7KHFROOLVLRQEHWZHHQELRORJLFDOVFLHQFHDQGKXPDQFXOWXUHZDVDOZD\V
LQWHQVHRIWHQGDPDJLQJ,WXVXDOO\OHGWRDIUHHPDUNHWSROLF\LQZKLFK
SDUHQWVFRXOGVHOHFWGHVLUDEOHWUDLWVIRUWKHLUFKLOGUHQ
6RPHRSWHG IRUORQJHYLW\LQFUHDVLQJWRWKHQHYHQ\HDUV:KHQD
PDMRULW\ZHUHORQJOLYHGVXFKSODQHWDU\VRFLHWLHVIDOWHUHG:K\"
6R,WUDFHGWKHHTXDWLRQVZDWFKLQJIRURXWVLGHLQIOXHQFHV<XJRZHQW
RQ*RQHZDVWKHIHYHUHG'DKOLWHKHUHZDVWKHEULOOLDQFHWKDWKDGPDGH+DUL
SOXFN<XJRRXWRIDVZHOWHULQJGHHSOD\HUMREGHFDGHVDJR
7KURXJKWKHHTXDWLRQVJUDFHIXOGHFHSWLYHVLQXRVLW\KHKDGIRXQGD
FXULRXVUHVRQDQFH7KHUHZHUHXQGHUO\LQJF\FOHVLQHFRQRPLFVDQGSROLWLFV
ZHOOXQGHUVWRRGRIDERXWWR\HDUV
:KHQWKHKXPDQOLIHVSDQUHDFKHGWKRVHUDQJHVDGHVWUXFWLYHIHHGEDFN
EHJDQ0DUNHWVEHFDPHMDJJHGODQGVFDSHVSHDNLQJDQGSOXQJLQJ&XOWXUHV
OXUFKHGIURPH[WUDYDJDQWH[FHVVWRSXULWDQLFDOFRQVWULFWLRQ:LWKLQDIHZ
FHQWXULHVFKDRVGHVWUR\HGPRVWRIWKHELRVFLHQFHFDSDELOLW\RUHOVH
UHOLJLRXVUHVWULFWLRQVVPRWKHUHGLW7KHPHDQOLIHVSDQVOLGGRZQDJDLQ
+RZVWUDQJH+DULVDLGREVHUYLQJWKHVHYHUHFXUYHVRIWKHF\FOHV
WKHLUDUFVFUDVKLQJLQWRVSOLQWHUHGVSRNHV,YHDOZD\VZRQGHUHGZK\ZHGRQW
OLYHORQJHU
7KHUHVJUHDWVRFLDOSUHVVXUHDJDLQVWLW1RZZHNQRZZKHUHLWFRPHV
IURP
6WLOO,GOLNHWRKDYHDFHQWXULHVORQJSURGXFWLYHOLIH
<XJRJULQQHG/RRNDWWKHPHGLDSOD\VOHJHQGVKRORV7KHYHU\ROG
DUHDOZD\VXJO\JUHHG\PLVHUVWU\LQJWRNHHSHYHU\WKLQJIRUWKHPVHOYHV
8PPP7UXHXVXDOO\
$QGP\WKV7KRVHZKRULVHIURPWKHGHDG9DPSLUHV0XPPLHV7KH\UH
DOZD\VHYLO
1RH[FHSWLRQV"
<XJRQRGGHG'RUVSXOOHGVRPHUHDOO\ROGRQHVRXWIRUPH7KHUHZDV
WKDWDQFLHQWPDUW\U-HVXZDVQWLW"
6RPHVRUWRIUHVXUUHFWLRQP\WK"
'RUVVD\V-HVXSUREDEO\ZDVQWDUHDOSHUVRQ7KDWVZKDWWKH
VFDWWHUHGDQFLHQWWH[WVVD\7KHZKROHP\WKLVSUREO\DFROOHFWLYH
SV\FKRGUHDP<RXOOQRWLFHRQFHKHZDVEDFNIURPWKHGHDGKHGLGQWVWD\
DURXQGYHU\ORQJ
5RVHLQWRKHDYHQZDVQWLW"
/HIWWRZQLQDKXUU\DQ\ZD\3HRSOHGRQWZDQW\RXDURXQGHYHQLI
\RXYHEHDWHQWKH5HDSHU
<XJRSRLQWHGDWWKHFXUYHVFRQYHUJLQJRQGLVDVWHU$WOHDVWZHFDQ
XQGHUVWDQGZK\PRVWVRFLHWLHVOHDUQQRWWROHWSHRSOHOLYHWRRORQJ
+DULVWXGLHGWKHHYHQWVXUIDFHV$KEXWZKROHDUQV"
+XK"3HRSOHRQHZD\RUWKHRWKHU
%XWQRVLQJOHSHUVRQHYHUNQHZKLVILQJHUMDEEHGWKLV
7KHNQRZOHGJHJHWVHPEHGGHGLQWDERRVOHJHQGVODZV
8PPP7KHUHZDVDQLGHDKHUHVRPHWKLQJODUJHUORRPLQJMXVWEH\RQGKLV
LQWXLWLRQVDQGLWVOLSSHGDZD\+HZRXOGKDYHWRZDLWIRULWWRUHYLVLWKLP
LIKHHYHUWKHVHGD\VJRWWKHWLPHWROLVWHQWRWKHVPDOOTXLHWYRLFHWKDW
VOLSSHGE\ZKLVSHULQJOLNHDVKDGRZ\ILJXUHRQDIRJJ\VWUHHW
+DULVKRRNKLPVHOI*RRGZRUNWKLV,PFRQVLGHUDEO\LPSUHVVHG
3XEOLVKLW

7KRXJKWZHZHUHNHHSLQSV\FKRKLVWRU\TXLHW
7KLVLVDVPDOOHOHPHQW3HRSOHZLOOWKLQNWKHUXPRUVDUHWDUWHGXS
YHUVLRQVRIWKLV
3V\FKRKLVWRU\FDQWZRUNLISHRSOHNQRZ
,WVVDIH7KHORQJHYLW\HOHPHQWZLOOJHWSOHQW\RIFRYHUDJHDQGVWRS
VSHFXODWLRQ
,WOOEHDFRYHUWKHQDJDLQVWWKH,PSHULDOVQRRSV"
([DFWO\
<XJRJULQQHG)XQQ\KRZWKH\VS\HYHQRQDQRUQDPHQWWRWKH
,PSHULXPWKDWVZKDW&OHRQFDOOHG\RXEHIRUHWKH5HJDO5HFHSWLRQODVWZHHN
+HGLG",GLGQWFDWFKWKDW
:RUNLQWRRPXFKRQWKRVH%RRQ'HHGV<RXJRWWRKDQGRIIWKDWVWXII
:HQHHGPRUHUHVRXUFHVIRUSV\FKRKLVWRU\
:K\QRWMXVWJHWVRPHPRQH\IXQQHOHGWKURXJKIURPWKH(PSHURU"
/DPXUNZRXOGILQGRXWXVHLWDJDLQVWPH)DYRULWLVPLQWKH+LJK
&RXQFLOSURFHHGLQJVDQGVRRQ<RXFRXOGZULWH WKHVWRU\\RXUVHOI
8PPD\EHVR6XUHZRXOGEHDZKROHORWHDVLHUWKRXJK
7KHLGHDLVWRNHHSRXUKHDGVGRZQ$YRLGVFDQGDOOHW&OHRQGRKLV
GLSORPDWLFGDQFH
&OHRQDOVRVDLG\RXZHUHDIORZHURILQWHOOHFW,UHFRUGHGLWIRU
\RX
)RUJHWLW)ORZHUVWKDWJURZWRRKLJKJHWSLFNHG


'RUVJRWDVIDUDVWKHSDODFHKLJKYHVWLEXOH7KHUHWKH,PSHULDO*XDUG
WXUQHGKHUEDFN
'DPQLWVKHVP\ZLIH+DULVDLGDQJULO\
6RUU\LWVD3HUHPSWRU\2UGHU WKHEODQGFRXUWRIILFLDOVDLG+DUL
FRXOGKHDUWKHFDSLWDOOHWWHUV7KHSKDODQ[RI6SHFLDOVDURXQG+DULGLGQRW
LQWLPLGDWHWKLVIHOORZKHZRQGHUHGLIDQ\RQHFRXOG
/RRNKHVDLGWR'RUVWKHUHVDELWRIWLPHEHIRUHWKHPHHWLQJ
/HWVHDWDELWDWWKH+LJK5HFHSWLRQ
6KHEULVWOHG<RXUHQRWJRLQJLQ"
,WKRXJKW\RXXQGHUVWRRG,KDYHWR&OHRQVFDOOHGWKLVPHHWLQJ
$W/DPXUNVLQVWLJDWLRQ
6XUHLWVDERXWWKLV'DKOLWHEXVLQHVV
$QGWKDWPDQ,NQRFNHGGRZQDWWKHUHFHSWLRQKHPLJKWKDYHEHHQ
LQVWLJDWHGWRGRLWE\
5LJKW/DPXUN+DULVPLOHG$OOZRUPKROHVOHDGWR/DPXUN
'RQWIRUJHWWKH$FDGHPLF3RWHQWDWH
6KHVRQP\VLGH
6KHZDQWVWKHPLQLVWHUVKLS+DUL$OOWKHUXPRUPLOOVVD\VR
6KHFDQGDPQZHOOKDYHLWKHJUXPEOHG
,FDQWOHW\RXJRLQWKHUH
7KLVLVWKHSDODFH+HVZHSWKLVDUPDWWKHUDQNVRIEOXHDQGJROGLQ
WKHYDVWSRUWDO,PSHULDOVDOODURXQG
,GRQRWOLNHLW
/RRNZHDJUHHG,GWU\WREOXVWHUSDVWDQGLWIDLOHGMXVWDV,VDLG
)DLUHQRXJK<RXZRXOGQHYHUSDVVWKHZHDSRQVFKHFNVDQ\ZD\
+HUWHHWKELWGHOLFDWHO\LQWRKHUORZHUOLSEXWVKHVDLGQRWKLQJ1R
KXPDQLIRUUQFRXOGHYHUJHWWKURXJKWKHLQWHQVHZHDSRQVVFUHHQKHUH
+HVDLGFDOPO\6R,JRLQDUJXHPHHW\RXRXWKHUH
<RXKDYHWKHPDSVDQGGDWD,RUJDQL]HG"
6XUHFKLSHPEHGGHG,FDQUHDGLWZLWKDWULSOHEOLQN
+HKDGDFDUU\FKLSHPEHGGHGLQKLVQHFNIRUGDWDKDXOLQJDQLQYDOXDEOH
DLGDWPDWKLVWFRQIHUHQFHV6WDQGDUGJHDUUHDGLO\DFFHVVHG$PLFURODVHU

ZURWHDQLPDJHRQWKHEDFNRIWKHUHWLQDFRORUV'DQLIW\JUDSKLFVSDFNDJH
6KHKDGLQVWDOOHGDORWRIPDSVDQGEDFNJURXQGRQWKH,PSHULXPWKHSDODFH
UHFHQWOHJLVODWLRQQRWDEOHHYHQWVDQ\WKLQJWKDWPLJKWFRPHXSLQGLVFXVVLRQV
DQGSURWRFROV
+HUVHYHUHH[SUHVVLRQGLVVROYHGDQGKHVDZWKHZRPDQEHQHDWK,
MXVWSOHDVHZDWFK\RXUVHOI
+HNLVVHGKHURQWKHQRVH$OZD\VGR
7KH\SDWUROOHGDPRQJWKHOHJLRQVRIKDQJHUVRQZKRWKURQJHGWKH
YHVWLEXOHVQDJJLQJWKHDSSHWL]HUVZKLFKIORDWHGE\RQSODWWHUV(PSLUHV
JRLQJEDQNUXSWDQGWKH\FDQDIIRUGWKLV+DULVQLIIHG
,WLVWLPHKRQRUHG'RUVVDLG%HDXPXQQWKH%RXQWLIXOGLVOLNHGGHOD\
LQFRQVXPLQJPHDOVZKLFKZDVLQGHHGKLVSULQFLSDODFWLYLW\+HRUGHUHGWKDW
HDFKRIKLVHVWDWHVSUHSDUHDOOIRXUGDLO\PHDOVIRUKLPRQWKHFKDQFHWKDW
KHPLJKWEHWKHUH7KHH[FHVVLVJLYHQRXWWKLVZD\
+DULZRXOGQRWKDYHEHOLHYHGVXFK DQXQOLNHO\VWRU\KDGLWQRWFRPHIURP
DQKLVWRULDQ7KHUHZHUHNQRWVRISHRSOHZKRSODLQO\OLYHGKHUHXVLQJVRPH
PLQRUIXQFWLRQDU\SRVLWLRQIRUDQLQILQLWHEDQTXHW+HDQG'RUVGULIWHGDPRQJ
WKHPZHDULQJUHIUDFWRU\YDSRUVZKLFKPXGGOHGWKHDSSHDUDQFH5HFRJQLWLRQ
ZRXOGEULQJSDUDVLWHV
(YHQDPLGDOOWKLVVZDQN\RXUHWKLQNLQJDERXWWKDW9ROWDLUHSUREOHP
DUHQW\RX"VKHZKLVSHUHG
7U\LQJWRILJXUHRXWKRZVRPHERG\FRSLHGKLPLWRXWRIRXUILOHV
$QGVRPHRQHKDGUHTXHVWHGLWMXVWKRXUVEHIRUH"6KHVFRZOHG:KHQ
\RXWXUQHGLWGRZQWKH\VLPSO\VWROHLW
3UREDEO\,PSHULDODJHQWV
,GRQWOLNHLW7KH\PD\EHWU\LQJWRLPSOLFDWH\RXIXUWKHULQWKH
ZKROH-XQLQVFDQGDO
6WLOOWKHROGDQWLVLPWDERRLVEUHDNLQJGRZQ+HWRDVWHGKHU/HWV
IRUJHWLW7KHVHGD\VLWVHLWKHUVLPVRUVWLPV
7KHUHZHUHVHYHUDOWKRXVDQGSHRSOHEHQHDWKWKHVFXOSWHGGRPH7RWHVW
WKHPDQZRPDQWHDPVKDGRZLQJWKHP'RUVOHGKLPRQDUDQGRPSDWK+DULWLUHG
UDSLGO\RIVXFKVNXOOGXJJHU\'RUVHYHUWKHVWXGHQWRIVRFLHW\SRLQWHGRXW
WKHIDPRXV6KHVHHPHGWRWKLQNWKLVZRXOGWKULOOKLPRUDWOHDVWGLVWUDFW
KLPIURPWKHPHHWLQJWRFRPH$IHZUHFRJQL]HGKLPGHVSLWHWKHUHIUDFWLRQ
YDSRUVDQGWKH\KDGWRVWRSDQGWDON1RWKLQJRIVXEVWDQFHZDVHYHUVDLGDW
VXFKIXQFWLRQVRIFRXUVHE\ORQJWUDGLWLRQ
7LPHWRJRLQ'RUVZDUQHGKLP
6SRWWHGWKHVKDGRZV"
7KUHH,WKLQN,IWKH\IROORZ\RXLQWRWKHSDODFH,OOWHOOWKH
6SHFLDOVFDSWDLQ
'RQWZRUU\1RZHDSRQVDOORZHGLQWKHSDODFHUHPHPEHU
3DWWHUQVERWKHUPHPRUHWKDQSRVVLELOLWLHV7KHDVVDVVLQDWLRQWDE
GHOD\HGGHWRQDWLRQMXVWORQJHQRXJKIRU\RXWRGLVFDUGLW%XWLWGLGPDNHPH
ZDU\HQRXJKWRDWWDFNWKDWSURIHVVRU
:KLFKJRW\RXEDQQHGIURPWKHSDODFH+DULFRPSOHWHGWKHWKRXJKW
<RXUHJLYLQJSHRSOHDORWRIFUHGLWIRULQWULFDWHPDQHXYHUV
<RXKDYHQWUHDGYHU\PXFKKLVWRU\RI,PSHULDOSROLWLFVKDYH\RX"
7KDQN*RGQR
,WZRXOGRQO\WURXEOH\RXVKHVDLGNLVVLQJKLPZLWKVXGGHQ
VXUSULVLQJIHUYRU$QGZRUU\LVP\ MRE
,OOVHH\RXLQDIHZKRXUV+DULVDLGDVFDVXDOO\DVKHFRXOGPDQDJH
GHVSLWHDGDUNSUHPRQLWLRQ+HDGGHGWRKLPVHOI,KRSH
+HHQWHUHGWKHSDODFHSURSHUWKURXJKWKHXVXDODUPVFKHFNVDQGSURWRFRO
RIILFHUV1RWKLQJQRWHYHQDFDUERQNQLIHRULPSORVLRQQXJJHWFRXOGHVFDSH
WKHLUPDQ\VQRXWHGVQLIIHUVDQGVTXLQWHUV0LOOHQQLDEHIRUH,PSHULDO
DVVDVVLQDWLRQKDGEHFRPHVRFRPPRQDVWRUHVHPEOHDVSRUW1RZWUDGLWLRQDQG
WHFKQRORJ\XQLWHGWRPDNHWKHVHIRUPDORFFDVLRQVXQLTXHO\VDIH7KH+LJK

&RXQFLOZDVPHHWLQJIRUWKH(PSHURUVUHYLHZVRLQHYLWDEO\WKHUHZHUH
EDWWDOLRQVRIRIILFLDOVDGYLVRUV0DJLVWHULDOV([WUDRUGLQDU\DQG\HOORZ
MDFNHWHGKDQJHUVRQ3DUDVLWHVDWWDFKHGWKHPVHOYHVWRKLPZLWKSUDFWLFHG
JUDFH
2XWVLGHWKH/\FHXPZDVWKHWUDGLWLRQDO%HQHYROHQW%RXQWLIXORULJLQDOO\
RQHORQJWDEOHQRZGR]HQVRIWKHPDOOJURDQLQJEHQHDWKULFKIRRGV
/DUJHVVHYHQEHIRUHEXVLQHVVPHHWLQJVZDVPDQGDWRU\DQDFFHSWDQFHRI
WKH(PSHURUVEHQHILFHQFH3DVVLQJLWE\ZRXOGEHDQLQVXOW+DULQLEEOHGDWD
IHZRGGPHQWVRQKLVZD\DFURVVWKH6DJLWWDULXV'RPHZD\1RLV\FURZGVPLOOHG
UHVWOHVVO\PRVWO\LQWKHVHULHVRIFHUHPRQLDOFORLVWHUVWKDWULPPHGWKH
GRPHZD\HDFKFXWRIIE\DFRXVWLFFXUWDLQV
+DULVWHSSHGLQWRDVPDOOVRXQGFKDPEHUDQGIRXQGDVXGGHQUHOHDVHIURP
WKHGLQ7KHUHKHTXLFNO\UHYLHZHGKLVQRWHVRQWKH&RXQFLODJHQGDQRW
ZDQWLQJWRDSSHDUDQXWWHUUXEH+LJK&RXUWW\SHVZDWFKHGHYHU\GHYLDWLRQIURP
SURWRFROZLWKVFRUQ7KHPHGLDWKRXJKQRWDOORZHGLQWKH/\FHXPEX]]HGIRU
ZHHNVDIWHUVXFKPHHWLQJVUHDGLQJHYHU\JDIIHIRULWVQXDQFHV+DULKDWHGDOO
WKLVEXWDVORQJDVKHZDVLQWKHJDPHKHPLJKWDVZHOOSOD\
+HUHFDOOHG'RUVFDVXDOPHQWLRQHDUOLHURI/HRQWKH/LEHUWLQHZKRKDG
RQFHDUUDQJHGDQHQWLUHIDX[EDQTXHWIRUKLVPLQLVWHUV7KHIUXLWFRXOGEH
ELWWHQEXWWKHQVQDJJHGWKHXQZDU\JXHVWVWHHWKZKLFKUHPDLQHGILUPO\
HPEHGGHGXQWLOUHOHDVHGE\DGLJLWDOFRPPDQG7KHFRPPDQGFDPHRIFRXUVH
RQO\IURPWKH(PSHURUDIWHUVRPHDPXVLQJEHJJLQJDQGJURYHOLQJEHIRUHWKH
RWKHUJXHVWV5XPRUVSHUVLVWHGRIGDUNHUGHOLJKWVREWDLQHGE\/HRQIURP
VLPLODUWUDSVWKRXJKLQSULYDWHTXDUWHUV
+DULEUXVKHGWKURXJKWKHVRXQGFXUWDLQVDQGLQWRWKHROGHUVLGHKDOOV
OHDGLQJWRWKH/\FHXP+LVUHWLQDOPDSKLJKOLJKWHGWKHVHDQFLHQW
XQIDVKLRQDEOH URXWHVEHFDXVHIHZFDPHWKLVZD\+LVHQWRXUDJHIROORZHG
REHGLHQWO\WKRXJKVRPHIURZQHG
+HNQHZWKHLUVRUWE\QRZ7KH\ZDQWHGWREHVHHQWKHLUSURFHVVLRQDO
SDUWLQJWKHFURZGVRIPHUH6HFWRUH[HFXWLYHV6DXQWHULQJWKURXJKGLPKDOOV
ZLWKRXWWKHMRVWOH RIWKHFURZGVGLGQRWKLQJIRUWKHHJR
7KHUHZDVDOLIHVL]HGVWDWXHRI/HRQDWWKHHQGRIDQDUURZ
SURFHVVLRQDOFRUULGRUKROGLQJDWUDGLWLRQDOH[HFXWLRQHUVNQLIH+DULVWRSSHG
DQGORRNHGDWWKHKHDY\EURZHGPDQKLVULJKWKDQGVKRZLQJWKLFNYHLQVZKHUH
LWKHOGWKHNQLIH,QKLVOHIWDFU\VWDOJOREHRIIRJZLQH7KHZRUNZDV
IODZOHVVDQGQRGRXEWIODWWHULQJWRWKH(PSHURUZKHQVFXOSWHG7KHNQLIHZDV
TXLWHUHDOHQRXJKLWVGRXEOHHGJHVJOHDPLQJ
6RPHFRQVLGHUHG/HRQVUHLJQWKHPRVWDQFLHQWRIWKH*RRG2OG'D\VZKHQ
RUGHUVHHPHGQDWXUDODQGWKH(PSLUHH[SDQGHGLQWRIUHVKZRUOGVZLWKRXW
WURXEOH/HRQKDGEHHQEUXWDO\HWZLGHO\ORYHG+DULZDQWHGSV\FKRKLVWRU\WR
ZRUNEXWZKDWLILWWXUQHGLQWRDWRROWRUHNLQGOHVXFK DSDVW"
+DULVKUXJJHG7LPHHQRXJKWRFDOFXODWHZKHWKHUWKH(PSLUHFRXOGEH
VDYHGRQDQ\WHUPVDWDOORQFHSV\FKRKLVWRU\DFWXDOO\H[LVWHG
+HZHQWLQWRWKH+LJK,PSHULDOFKDPEHUVHVFRUWHGE\WKHULWXDO
RIILFHUV$KHDGOD\&OHRQ/DPXUNDQGWKHSDQRSO\RIWKH+LJK&RXQFLO
+HNQHZKHVKRXOGEHLPSUHVVHGE\DOOWKLV6RPHKRZWKRXJKWKHDLURI
KLJKRSXOHQFHRQO\PDGHKLPPRUHLPSDWLHQWWRWUXO\XQGHUVWDQGWKH(PSLUH$QG
LIKHFRXOGDOWHULWVFRXUVH


+DULZREEOHGVOLJKWO\DVKHOHIWWKH/\FHXPWKUHHKRXUVODWHU'HEDWH
ZDVVWLOOLQIXOOFU\EXWKHQHHGHGDEUHDN$OHVVHU0LQLVWHUIRU6HFWRU
&RUUHODWLRQRIIHUHGWRWDNHKLPWRWKHUHIUHVKPHQWEDWKVDQG+DULJUDWHIXOO\
DFFHSWHG
,GRQWNQRZKRZPXFKPRUHRIWKLV,FDQWDNHKHVDLG
<RXPXVWDFFRPPRGDWHWRWHGLXPWKHPLQLVWHUVDLGFKHHUIXOO\

0D\EH,ZLOOGXFNRXW
1RFRPHUHVW
+LVFHUHPRQLDOUREHVUHTXLUHGLQWKH/\FHXPZHUHFORVHDQGVZHDW\7KH
RUQDWHEXFNOHGXJLQWRKLVEHOO\,WZDVELJDQGJDXG\ZLWKDFKURPHG
UHFHLYHUIRUKLVULWXDOVW\OXVHTXDOO\HPEHOOLVKHGDQGXVHGRQO\LQYRWLQJ
7KHPLQLVWHUFKDWWHGRQDERXW/DPXUNVDWWDFNRQ+DULZKLFK+DULKDG
WULHGWRLJQRUH(YHQVRKHKDGEHHQIRUFHGWRULVHWRGHIHQGRUH[SODLQ
KLPVHOI+HKDGPDGHDSRLQWRINHHSLQJKLVVSHHFKHVVKRUWDQGFOHDUWKRXJK
WKLVZDVIDUIURPWKHVW\OHRIWKH/\FHXP7KHPLQLVWHUSROLWHO\DOORZHGWKDW
KHWKRXJKWWKLVZDVUDWKHUDQHUURU
7KH\ZHQWWKURXJKWKHUHIUHVKHUZKHUHEOXHJRXWVRILRQVGHVFHQGHG
+DULZDVJUDWHIXOWKDWWDONZDVLPSRVVLEOHWKURXJKDOOWKLVDQGOHWDQ
HOHFWURVWDWEUHH]HPDVVDJHKLPXQWLOWKH\HYROYHGLQWRGHFLGHGO\HURWLF
FDUHVVHVDSSDUHQWO\&RXQFLOPHPEHUVSUHIHUUHGWKHLUYLFHVUHDGLO\WRKDQG
7KHPLQLVWHUZHQWLQSXUVXLWRIVRPHSULYDWHDPXVHPHQWKLVIDFHDOLYH
ZLWKDQWLFLSDWLRQ+DULGHFLGHGKHZRXOGUDWKHUQRWNQRZZKDWZDVDERXWWR
WUDQVSLUHDQGPRYHGIDUWKHULQWRDYDSRUFHOO+HUHVWHGWKLQNLQJDVD
JLQJHUFRORUHGPDWFOHDQHGKLVFKDPEHUHOHPHQWDU\ELRPDLQWHQDQFH+LVPXVFOHV
VWUHWFKHGDVKHUHIOHFWHGRQWKHJXOIEHWZHHQKLPDQGWKHSURIHVVLRQDOVRIWKH
/\FHXP
7R+DULKXPDQNQRZOHGJHZDVODUJHO\WKHXQDUWLFXODWHGH[SHULHQFHVRI
P\ULDGVQRWWKHIRUPDOOHDUQLQJRIDYRFDOHOLWH0DUNHWVKLVWRU\VKRZHG
FRQYH\HGWKHSUHIHUHQFHVDQGLGHDVRIWKHPDQ\*HQHUDOO\WKHVHZHUHVXSHULRU
WRJUDQGLRVHSROLFLHVKDQGHGGRZQIURPWKHWDOHQWDQGZLVGRPRIWKHIHZ<HW
,PSHULDOORJLFDVNHGLIDJLYHQDFWLRQZHUHJRRGQRWZKHWKHULWZDV
DIIRUGDEOHRUKRZPXFKZDVHYHQGHVLUDEOH
+HWUXO\GLGQRWNQRZKRZWRVSHDNWRWKHVHSHRSOH&OHYHUYHUEDOWXUQV
DQGDUWIXOGRGJHVKDGVHUYHGZHOOHQRXJKWRGD\EXWVXUHO\WKDWFRXOGQRW
ODVW
7KHVHUXPLQDWLRQVKDGGLVWUDFWHGKLP:LWKDVWDUWKHUHDOL]HGKHVKRXOG
JHWEDFN
/HDYLQJWKHUHIUHVKHUKHDQJOHGRIIWKH REYLRXVURXWHZKLFKZDV
WKURQJHGZLWKIXQFWLRQDULHVRQWKURXJKDFRXVWLFYHLOVDQGLQWRWKHVPDOO
SURFHVVLRQDOKDOOFRQVXOWLQJKLVSDODFHPDSV+HKDGXVHG'RUVFDUU\FKLSD
GR]HQWLPHVDOUHDG\PRVWO\WRIROORZWKHTXLFNFU\SWLF&RXQFLOGLVFXVVLRQV
7KHPLFURODVHUZULWWHQ'PDSRQKLVUHWLQDURWDWHGLIKHUROOHGKLVH\HV
SURYLGLQJSHUVSHFWLYH7KHUHZHUHIHZVWDIIDURXQGPRVWFOXVWHUHGLQ
DWWHQGDQFHRXWVLGHWKH/\FHXP
+DULUHDFKHGWKHHQGRIWKHKDOODQGJODQFHGXSDWWKHVWDWXHRI/HRQ
7KHH[HFXWLRQHUVNQLIHZDVJRQH
:K\ZRXOGDQ\RQH"
+DULWXUQHGDQGKXUULHGEDFNWKHZD\KHKDGFRPH
%HIRUHKHFRXOGUHDFKWKHDFRXVWLFYHLOVDPDQVWHSSHGWKURXJKWKHLU
LYRU\OXPLQHVFHQFH7KHUHZDVQRWKLQJXQXVXDODERXWWKHPDQH[FHSWWKHZD\KLV
H\HV IOLFNHGDURXQGILQDOO\IDVWHQLQJRQ+DUL
7KHUHZDVDERXWWKLUW\PHWHUVEHWZHHQWKHP+DULWXUQHGDVWKRXJKKH
ZHUHDGPLULQJWKHEDURTXHO\IHVWRRQHGZDOOVDQGZDONHGDZD\+HKHDUGWKH
RWKHUPDQVERRWVFULVSO\IROORZ
0D\EHKHZDVEHLQJSDUDQRLGDQG PD\EHQRW+HKDGRQO\WRJHWEDFNWRD
FURZGDQGDOOWKLVZRXOGGLVVROYHDZD\KHWROGKLPVHOI7KHIRRWVWHSVEHKLQG
KLPJRWVKDUSHUFORVHU
+HWXUQHGDQGGXFNHGGRZQDVLGHSDVVDJH$KHDGZDVDULWXDOURRP7KH
IRRWVWHSVVSHGXS+DULWURWWHGDFURVVWKHFLUFXODUURRPDQGLQWRDQDQFLHQW
IR\HU1RRQHWKHUH
'RZQDORQJKDOOZD\KHFRXOGVHHWZRPHQZKRVHHPHGWREHFDVXDOO\
WDONLQJ+HVWDUWHGWRZDUGWKHPEXWWKH\ERWKEURNHRIIDQGORRNHGDWKLP
2QHUHDFKHGLQWRKLVSRFNHWDQGSURGXFHGDFRPPDQGEHJDQVSHDNLQJLQWRLW

+DULEDFNHGDZD\IRXQGDVLGHSDVVDJH+HEROWHGGRZQLW
:KDWDERXWWKHVXUYHLOODQFHFDPHUDV"(YHQWKHSDODFHKDGWKHP%XWWKH
RQHDWWKHHQGRIWKLVSDVVDJHKDGDQXQXVXDOFDSRQLW5XQQLQJDIDNHYLHZ
KHUHDOL]HG
7KHDQFLHQWSRUWLRQVRIWKH/\FHXPSHULPHWHUZHUHQRWRQO\
XQIDVKLRQDEOHWKH\ZHUHXQSRSXODWHG+HWURWWHGWKURXJKDQRWKHUH[WUDYDJDQW
ULWXDOURRP%RRWVZHUHFRPLQJIDVWEHKLQGKLP+HWXUQHGWRWKHULJKWDQGVDZ
DFURZGGRZQDORQJUDPS
+H\KH\HOOHG1RERG\ORRNHGKLVZD\+HUHDOL]HGWKH\ZHUHEHKLQGD
VRXQGYHLO+HVWDUWHGWRZDUGWKHP
$PDQVWHSSHGRXWRIDQDOFRYHWREORFNWKHZD\7KLVRQHZDVWDOODQG
OHDQDQGVWDUWHGWRZDUG+DULZLWKDPXVFXODUQRQFKDODQFH/LNHWKHRWKHUVKH
VDLGQRWKLQJGUHZQRDWWHQWLRQWRKLPVHOI-XVWNHSWFRPLQJ
+DULDQJOHGOHIWDQGEURNHLQWRDWURW$KHDGOD\WKHUHIUHVKHUKHKDG
FLUFOHGEDFN3OHQW\RISHRSOHWKHUH,IKHFRXOGUHDFKLW
2QHORQJSDVVDJHZD\OHGGLUHFWO\WRZDUGWKHUHIUHVKHUV+HWRRNLWDQG
KDOIZD\GRZQVDZWKDWDSDUW\RIWKUHHZRPHQZHUHWDONLQJLQDGHFRUDWLYH
QLFKH+HVORZHGDQGWKH\VWRSSHGWDONLQJ7KH\ZRUHIDPLOLDUVWDIIUREHV
3UREDEO\WKH\ZRUNHGLQWKHUHIUHVKHUV
7KH\WXUQHGWRZDUGKLPORRNLQJDOLWWOHVXUSULVHG+HRSHQHGKLVPRXWK
WRVD\VRPHWKLQJDQGWKHQHDUHVWZRPDQVWHSSHGVPDUWO\IRUZDUGDQGJUDEEHG
KLVDUP
+HMHUNHGEDFN6KHZDVVWURQJ6KHJULQQHGDWWKHRWKHUVDQGVDLG
)HOOULJKWLQWRRXU
+H\DQNHGKLVDUPWRWKHVLGHDQGEURNHKHUJULS6KHFDPHRIIEDODQFH
DQGKHWRRNDGYDQWDJHRIWKDWWRVKRYHKHULQWRWKHRWKHUWZR2QHODVKHGD
NLFNDWKLP6KHWZLVWHGKHUKLSWRJHWPRPHQWXPLQWRLWEXWVKHFRXOGQRW
JHWIXOO\DURXQGKHUFRPSDQLRQDQGLWVWRSSHGVKRUWIXWLOH
+DULWXUQHGDQGUDQ7KHZRPHQZHUH REYLRXVO\ZHOOWUDLQHGDQGKHGLG
QRWKDYHPXFKKRSHRIJHWWLQJDZD\+HSOXQJHGDKHDGGRZQWKHORQJSDVVDJHZD\
:KHQKHJODQFHGEDFNKRZHYHUDOOWKUHHZHUHVWDQGLQJDQGZDWFKLQJKLPJR
7KLVZDVVRRGGWKDWKHVORZHGWKLQNLQJ7KH\DQGWKHPHQZHUHQRW
DWWDFNLQJKLPMXVWER[LQJKLPLQ
,QWKHVHSXEOLFFRUULGRUVFDVXDOZLWQHVVHVFRXOGHDVLO\SDVVE\7KH\
ZDQWHGKLPVRPHZKHUHSULYDWH
+DULFDOOHGXSKLVSDODFHPDS,WSODFHGKLPDVDUHGGRWLQWKHQHDUE\
IORRUSODQ+HFRXOGVHHWZRVLGHDOOH\V XSDKHDGEHIRUHWKHHQGRIWKH
SDVVDJHZD\
ZKHUHQRZWZRPHQVWHSSHGLQWRYLHZDUPVIROGHG
+DULVWLOOKDGWZRZD\VRXW+HZHQWOHIWLQWRDQDUURZODQHOLQHGZLWK
DQWLTXHWHVWDPHQWV(DFKZLQNHGRQDQGEHJDQLWVQDUUDWLRQRIYDVWHYHQWVDQG
JUHDWYLFWRULHVQRZEXULHGEHQHDWKPLOOHQQLDRILQGLIIHUHQFH7KH'V
IOLFNHUHGZLWKFRORUIXOVSHFWDFOHVDVKHSRXQGHGSDVWWKHP6RQRURXVYRLFHV
LPSORUHGKLPWRDWWHQGWRWKHLUWDOHV+HZDVSXIILQJKHDYLO\QRZDQGWU\LQJ
WRIRFXVKLVWKRXJKWV
,QWHUVHFWLRQFRPLQJXS+HVKRWWKURXJKLWDQGVDZPHQFORVLQJLQIURP
WKHULJKW
+HGRGJHGGRZQDVOLJKWVLGHH[LWXQGHUDSDUWLFLSDWRU\PDXVROHXPWR
(PSHURU(OLQRU,9DQGVSULQWHGWRZDUGDVHWRIGRRUZD\VKHUHFRJQL]HG7KHVH
ZHUHWKHUHIUHVKHUERRWKVSDOHGRRUVPDUNHGRQO\ZLWKQXPEHUV7KH0LQLVWHU
IRU6HFWRU&RUUHODWLRQKDGSRLQWHGWKHPRXWDVWKHYHU\EHVWVXLWDEOHIRU
SULYDWHDSSRLQWPHQWV
+DULKDGWRFURVVDVPDOOSLD]]DWRUHDFKWKHQHDUHVWGRRU$PDQFDPH
UXQQLQJIURPWKHULJKWVD\LQJQRWKLQJ+DULWULHGWKHILUVWGRRULWZDV
ORFNHG6RZDVWKHVHFRQG7KHPDQZDVQHDUO\RQWRSRIKLP7KHKDQGOHRQWKH
WKLUGGRRUWXUQHGDQG+DULZHQWWKURXJK
,WZDVDWUDGLWLRQDOGRRURQKLQJHV+HWKUHZKLVZHLJKWEDFNLQWRLWWR

VODPLWVKXW7KHPDQKLWWKHGRRUKHDYLO\DQGJRWDKDQGDURXQGWKHHGJH
+DULKHDYHGDJDLQVWWKHGRRU7KHPDQKHOGIDVWDQGMDPPHGKLVULJKWIRRW
EHWZHHQWKHGRRUDQGWKHFDVLQJ
+DULVKRYHGKDUG7KHJDSEHWZHHQGRRUDQGFDVLQJQDUURZHGWUDSSLQJWKH
KDQG
7KHRWKHUPDQZDVVWURQJ+HJUXQWHGDQGVKRYHGEDFNKDUGDQGWKHJDS
ZLGHQHG
+DULSXWKLVEDFNDJDLQVWWKHGRRUDQGWKUXVWZLWKKLVOHJV+HKDG
QRWKLQJWRKHOSKLPDQGWKHULGLFXORXVFHUHPRQLDOUREHVGLGQWKHOS1RWKLQJ
LQWKHUHIUHVKHUZDVQHDUE\QRWRRO
+DULUHDFKHGLQWRKLVEXFNOH7KHDQFLHQWYRWLQJVW\OXVVOLSSHGLQWRKLV
SDOP+HWRRNLWLQKLVULJKWKDQGDQGWZLVWHGDJDLQVWWKHGRRUVKRYLQJZLWK
KLVULJKWVKRXOGHU7KHQKHSDVVHGWKHVW\OXVWRKLVOHIWKDQGDQGEURXJKWLW
GRZQZLWKDVDYDJHVWDELQWRWKHPDQVKDQG
7KHVW\OXVZDVLQVFULEHGDQGHPEHOOLVKHGEXWLWWDSHUHGWRDVOHQGHU
SRLQW+DULVWUXFNEHWZHHQWKHWKLUGDQGIRXUWKNQXFNOHV+DUG
$VPDOODUWHULDOSXPSHUVTXLUWHG6KRUWSXOVDWLQJDUFVVKRWRQWRWKH
GRRUYLYLGUHG7KHPDQFULHG$KDQGOHWJR RIWKHGRRU
+DULVODPPHGWKHGRRUVKXWDQGIXPEOHGZLWKWKHORFN0DJQHWLFJULGV
FOLFNHGRQ3DQWLQJKHWXUQHGWRVXUYH\WKHUHIUHVKHU
,WZDVRQHRIWKHEHVWDPSOH7ZRVRRWKLQJERRWKVDOLIWFRXFKDQ
DPSOHVWRFNRIUHIUHVKPHQWV6HYHUDOYDSRUZHOOVZKHUHOX[XULDQWGDOOLDQFHV
RIWHQRFFXUUHGDVUXPRUKDGLW$JDLQVWWKHIDUZDOODSHUFXVVLYHQRRNIRU
WKHDWKOHWLF$QGDWKLQVOLWZLQGRZDOVRWUDGLWLRQDORSHQWRDFHUDPLFDQG
VDQGJDUGHQ,WZDVNHSWDVDUHPLQGHURIHUDVZKHQEHLQJWUDSSHGLQ KHUHZLWK
XQVDYRU\SHUVRQVZDVEHVWDYRLGHGE\DTXLFNH[LW
+DULKHDUGDVOLJKWVQLFNDJDLQVWWKHGRRU3UREDEO\DGHSRODUL]HU
ILWWLQJLQWRSODFHWRXQORFNWKHPDJQHWLFV+HFRQVLGHUHGWKHVOLWZLQGRZ


$PDQFDPHFDUHIXOO\LQWRWKHUHIUHVKHUFKDPEHU+HZRUHDVLPSOH
,PSHULDOVHUYDQWVWXQLFZKLFKDOORZHGIUHHGRPRIPRYHPHQW3HUIHFWIRUTXLFN
ZRUN+HFDUULHGWKHNQLIHIURPWKH/HRQVWDWXH
+HFORVHGWKHGRRUEHKLQGKLPZLWKRQHKDQGDQGORFNHGLWDOOWKHZKLOH
NHHSLQJKLVH\HVRQWKHURRPDQGWKHNQLIHDWWKHUHDG\7KRXJKKHZDVODUJH
KHPRYHGZLWKDQHDV\JUDFH0HWKRGLFDOO\KHFKHFNHGLQWKHERRWKVDQGYDSRU
ZHOOVDQGHYHQWKHSHUFXVVLYHQRRN1RRQHWKHUH+HOHDQHGRXWWKHVOLW
ZLQGRZZKLFKZDVWKURZQIXOO\RSHQ7KHQDUURZZLQGRZZDVQRWODUJHHQRXJKWR
OHWKLPSDVVKHZDVPDVVLYHEHQHDWKKLVOLJKWEOXHVWDIIXQLIRUP
+HVWRRGEDFNDQGVSRNHLQWRKLVZULVWFRPP+HJRWRXWLQWRWKH
JDUGHQ&DQWVHHKLPIURPKHUH<RXJRWWKDWEORFNHG"
+HSDXVHGDPRPHQWOLVWHQLQJWRDQLQWHUQDOYRLFHDQGVDLGFXUWO\
&DQWILQGKLP"&RXUVH\RXFDQW,WROG\RXZHVKRXOGQWFXWWKHVQRRSVLQ
WKLVDUHD
$QRWKHUSDXVH6XUH,NQRZLWVDVHFXUHMREHYHQJRWLWVRZQ5'
QXPEHUDQGDOOQRUHFRUGLQJ VQRRSVEXW
7KHPDQSDFHGDQJULO\:HOO\RXMXVWEHGDPQVXUHDOOWKHZD\VRXWDUH
FRYHUHG7KRVHJDUGHQVDUHDOOFRQQHFWHG
$QRWKHUSDXVH*RWWKHVQLIIHUVRQ"&DPHUDV"*RRG<RXJX\VPHVVWKLV
XS,OO+HOHWKLVYRLFHWUDLORIILQWRDJURZO
+HJDYHWKHURRPRQHODVWORRNDQGXQORFNHGWKHPDJQHWLFV$PDQZLWKD
EORRGVRDNHGVOHHYHVWRRGRXWVLGHMXVWZLWKLQYLHZ
<RXUHGULSSLQVWXSLGWKHNQLIHFDUULHUVDLG+ROGWKDWDUPXS
KLJKDQGJHWDZD\IURPKHUH6HQGDFOHDQXSFUHZWRR
7KHRWKHUPDQVDLG:KHUHGKH
.QHZ,VKRXOGQWKDYH\RXRQWKLVRQH*RGGDPQDPDWHXU7KHNQLIHPDQ

OHIWDWDUXQ
$OOWKLVKDGVHHPHGWRWDNHIRUHYHU6HFRQGVWLFNHGE\DV+DULKHOGRQWR
DFHLOLQJWLOHZLWKDOOKLVVWUHQJWK
,QGDUNQHVVKHZDVO\LQJDFURVVVXSSRUWVWUXWVGLUHFWO\RYHUDVRRWKLQJ
ERRWK+HFRXOGVHHGRZQWKURXJKDQDUURZVOLW)URPEHORZKHKRSHGWKHVOLW
ZDVWKHRQO\VLJQWKDWWKHFHLOLQJKDGEHHQSXVKHGXSDVTXDUHGLVORFDWHG+H
FRXOGVHHWKHVFXIIPDUNVRQWKHWRSRI WKHERRWKZKHUHKHKDGFOLPEHGXSDQG
NQRFNHGWKHFHLOLQJWLOHRXWRILWVFODPSV
1RZKHKDGWRKROGWKHWKLQJLQSODFH+LVKDQGVZHUHVWDUWLQJWRDFKH
IURPJULSSLQJLW
%HORZKHVDZDOHJDQGIRRWHQWHUWKHUHIUHVKHUWXUQZDONRXWRIYLHZ
6RPHRQHHOVHDEDFNXSWHDP"
,IWKHWLOHVOLSSHGDZD\IURPKLPDQ\RQHEHORZZRXOGQRWLFHWKHQRLVH
VHHWKHGDUNVOLWZLGHQ0D\EHLWZRXOGJHWDZD\IURPKLPFRPSOHWHO\DQGIDOO
+HFORVHGKLVH\HVDQGFRQFHQWUDWHGRQKLVILQJHUVZLOOLQJWKHPWR
JUDVS7KH\ZHUHQXPEQRZ*HWWLQJZRUVH6WDUWLQJWRWUHPEOH
7KHWLOHZDVKHDY\WULSOHOD\HUHGIRUDFRXVWLFSULYDF\,WZDVJHWWLQJ
DZD\IURPKLPKHFRXOGIHHOLW6OLSSLQJ,WZDVJRLQJWR
7KHIHHWEHORZZDONHGRXWDQGWKHQFDPHWKHVZLVKRIWKHGRRUFORVLQJ
,WVORFNFOLFNHG
+HGLGQRWZLOOLWEXWKLVILQJHUVOHWWKHWLOHVOLS,WVPDFNHGWKH
IORRUORXGO\+DULIUR]HOLVWHQLQJ
1RFOLFNRIWKHGRRUORFNUHRSHQLQJ-XVWWKHVRIWVOXURIWKHDLU
FLUFXODWRUV
6RKHZDVVDIHIRUDZKLOH6DIHLQDWUDS
1RERG\NQHZKHZDVKHUH2QO\DWKRURXJKVHDUFKZRXOGEULQJDQ\
WUXVWZRUWK\,PSHULDOVWKLVIDUIURPWKH/\FHXPDUHD
$QGZK\VKRXOGWKH\"1RERG\ZRXOGQRWLFHWKDWKHZDVPLVVLQJULJKWDZD\
(YHQWKHQWKH\ZRXOGSUREDEO\WKLQNKHKDGVLPSO\JRWWHQIHG XSZLWKWKH
&RXQFLODQGJRQHKRPH+HKDGVDLGDVPXFKWRWKH0LQLVWHUIRU6HFWRU
&RUUHODWLRQ
:KLFKPHDQWWKHDVVDVVLQVFRXOGTXLHWO\VHDUFKIRUKRXUV7KHNQLIH
FDUULHUKDGVRXQGHGV\VWHPDWLFGHWHUPLQHG+HZRXOGLQHYLWDEO\WKLQNRI
FKHFNLQJEDFNKHUHVWDUWLQJRYHURQWKHWUDLO7KHUHZHUHSUREDEO\VFHQW
VQRRSVWKH\FRXOGPXVWHU$QGE\QRZWKHDUUD\RIFDPHUDVWKURXJKRXWWKH
SDODFHZRXOGEHORRNLQJIRUKLP
/XFNLO\WKHUHZHUHQRQHLQWKHUHIUHVKHU+HFOLPEHGGRZQQHDUO\
VOLSSLQJRQWKHFXUYHGWRSRIWKHVRRWKLQJERRWK*HWWLQJWKHKHDY\FHLOLQJ
WLOHEDFNXSLQWRSODFHWRRNDJLOLW\DQGVWUHQJWK+HZDVSXIILQJE\WKHWLPH
KHUHSODFHGLWDERYHWKHUHIUHVKHU+HOD\DORQJWKHVWUXWVDQGJRWWKHWLOH
VHFXUHGDJDLQ
+HOD\LQWKHGDUNQHVVDQGWKRXJKW'RUVSDODFHPDSSRSSHGXSLQKLV
H\HRQFRPPDQGLWVFRORUVDQGGHWDLOVPRUHYLYLGLQWKHJORRP2IFRXUVHLW
VKRZHGQRWKLQJDVXWLOLWDULDQDVWKLVFUDZOVSDFH+HFRXOGVHHKHZDVGHHSO\
HPEHGGHGLQWKH/\FHXPVIULQJHDUHDV3HUKDSVKLVEHVWEHWZRXOGEHWRZDON
EROGO\RXWRIWKLVUHIUHVKHU,IKHFRXOGUHDFKDFURZG
,I+HGLGQRWOLNHOHDYLQJKLVIDWHWRFKDQFH7KDWLQFOXGHGWKH
VWUDWHJ\RIO\LQJKHUHKRSLQJWKH\GLGQRWFRPHEDFNZLWKVQRRSHUVWKDWFRXOG
VHQVHKLPXSKHUH
$Q\ZD\KHNQHZWKDWKHFRXOGQRWVLPSO\GRQRWKLQJ7KDWZDVQRWLQKLV
QDWXUH:KHQSDWLHQFHZDVQHHGHGILQHEXWZDLWLQJGLGQRWQHFHVVDULO\
LPSURYHKLVRGGV
+HORRNHGRIILQWRWKHPXUN\VSDFH*ORRPVWUHWFKHGDZD\+HFRXOGPRYH
DURXQGXSKHUH%XWZKLFKZD\"
'RUVPDSWROGKLPWKDWWKH*DUGHQVRI5HVSLWH&RUPHGDQDUWIXOWDQJOH
DURXQGWKHUHIUHVKHUDUHD1R GRXEWWKHFRPSHWHQWDVVDVVLQVZRXOGKDYHXVKHUHG
DZD\DQ\SRWHQWLDOZLWQHVVHVRXWVLGHWKHZLQGRZRIWKLVUHIUHVKHUURRP

,IKHFRXOGVRPHKRZJHWIDUHQRXJKLQWRWKHJDUGHQV
+DULUHDOL]HGKHZDVWKLQNLQJLQWZRGLPHQVLRQV+HFRXOGUHDFKPRUH
SXEOLF DUHDVE\PRYLQJXSWKURXJKDIHZOD\HUVRIWKHSDODFH2XWVLGHWKLV
UHIUHVKHUURRPGRZQWKHKDOOZD\'RUVPDSVKRZHGDOLIWVKDIW
+HJRWKLVEHDULQJVDQGSHHUHGLQWKDWGLUHFWLRQ+HKDGQRLGHDKRZDQ
HOLIWILWLQWRDEXLOGLQJ7KHPDSVLPSO\VKRZHGDUHFWDQJXODUHQFORVXUHZLWK
DOLIWV\PERO%XWDEXUQLQJIHDUPDGHKLVPXVFOHVFOHQFKDQGIUHW
+HVWDUWHGFUDZOLQJWKDWZD\QRWEHFDXVHKHNQHZZKDWWRGREXW
EHFDXVHKHGLGQW8SULJKWFHUDPLIRUPVWXGVSURYLGHGVXSSRUWDQGKHKDGWREH
FDUHIXOWR QRWNQRFNFHLOLQJWLOHVRXWRIWKHLUPRXQWV+HVOLSSHGDQGMDPPHG
DNQHHLQWRRQHDQGLWJDYHWKUHDWHQLQJO\WKHQSRSSHGEDFNXS'LPWKUHDGVRI
SKRVSKRUJORZVHHSHGEHWZHHQWKHWLOHV'XVWWLFNOHGKLVQRVWULOVDQGFRDWHG
KLVOLSV+HZDVJHWWLQJGLUW\ZLWKWKHJULPHRIPLOOHQQLD
8SDKHDGDEOXHJOHDPFDPHIURPURXJKO\ZKHUHWKHOLIWVKRXOGEH$VKH
GUHZFORVHUWKHJRLQJJRWKDUGHUEHFDXVHGXFWVSLSHVRSWLFDOFRQGXLWVDQG
FURVVMRLQWVWKLFNHQHGFRQYHUJLQJRQWKHKDOOZD\/RQJPLQXWHVSDVVHGZKLOH
KHWKUHDGHGKLVZD\DPRQJWKHP+HWRXFKHGDSLSHWKDWVFRUFKHGKLVDUPD
VHDULQJMROWVRVXUSULVLQJKHDOPRVWFULHGRXW+HVPHOOHGEXUQWIOHVK
7KHEOXHUDGLDQFHOHDNHGDURXQGWKHHGJHVRIDSDQHO6XGGHQO\LW
IODUHGWKHQGLHGDJDLQDVKHHGJHGFORVHU$VKDUSFUDFNOLQJWROGKLPWKDWDQ
HFHOOKDGMXVWSDVVHGLQWKHOLIW+HFRXOGQRWWHOOZKHWKHULWZDVJRLQJXS
RUGRZQ
7KHSDQHOZDVFHUDPRVWHHODERXWDPHWHURQDVLGHZLWKHOHFWULFDO
ULEERQVDWWDFKHGDWDOOIRXUVLGHV+HGLGQRWNQRZLQGHWDLOKRZDQHOLIW
ZRUNHGRQO\WKDWLWFKDUJHGWKHFDUULHUFRPSDUWPHQWDQGWKHQKDQGHGWKH
ZHLJKWRIIDPRQJDVWHDG\ZDYHRIHOHFWURG\QDPLFILHOGV
+HJRWKLVIHHWDURXQGDQGNLFNHGDWWKHSDQHO,WKHOGEXWGHQWHG+H
NLFNHGDJDLQDQGLWORRVHQHG+HJUXQWHGZLWKWKHHIIRUWRIDWKLUGDIRXUWK
WKHSDQHOSRSSHGRXWDQGIHOODZD\
+DULEUXVKHGDVLGHWKHWKLFNHOHFWULFDOULEERQVDQGSRNHGKLVKHDGLQWR
WKHVKDIW,WZDVGDUNOLWRQO\E\DGXOOUDGLDQFHDORQJDWKLQYHUWLFDO
SKRVSKRUZKLFKWDSHUHGDZD\LQWRREVFXULW\ERWKDERYHDQGEHORZ
7KHSDODFHZDVPRUHWKDQDNLORPHWHUWKLFNLQWKLVDQFLHQWVHFWLRQ
0HFKDQLFDOHOHYDWRUVXVLQJFDEOHVFRXOGQRWVHUYHHYHQVPDOOSDVVHQJHUOLIWV
OLNHWKLVRQHRYHUKHLJKWVRIDNLORPHWHU&KDUJHFRXSOLQJIURPWKHVKDIW
ZDOOVWRWKHHFHOOKDQGOHGWKHG\QDPLFVZLWKHDVH7KHWHFKQRORJ\ZDVDJHG
DQGUHOLDEOH7KLVVKDIWPXVWEHDWOHDVWWHQPLOOHQQLDROGDQGVPHOOHGOLNH
LW
+HGLGQRWOLNHWKHSURVSHFWEHIRUHKLP7KHPDSWROGKLPWKDWWKUHH
OD\HUVDERYHKLPZHUHVSDFLRXVSXEOLFURRPVXVHGWRSURFHVVVXSSOLFDQWVWRWKH
,PSHULXP+HZRXOGEHLQVDIHFRPSDQ\WKHUH%HORZZHUHHLJKW/\FHXPOD\HUV
ZKLFKKHPXVWDVVXPHZHUHGDQJHURXV(DVLHUFHUWDLQO\WRFOLPEGRZQEXW
DOVRIDUWKHU
,WZRXOGQRWEHWKDWWULFN\KHUHDVVXUHGKLPVHOI,QWKHVKDGRZ\VKDIW
KHVDZUHJXODUHOHFWURVWDWLFHPLWWHUVVXQNHQLQWRWKHZDOOV+HIRXQGDVWUDQG
RIHOHFWULFDOULEERQDQGSRNHGLQWRRQH1RVSDUNVQRGLVFKDUJH7KDWFKHFNHG
ZLWKKLVVNHWFK\NQRZOHGJHWKHHPLWWHUVZHQWRQRQO\ZKHQD FHOOSDVVHG7KH\
ZHUHGHHSHQRXJKWRJHWKLVIHHWKDOIZD\LQWR
+HOLVWHQHGFDUHIXOO\1RVRXQG(FHOOVZHUHQHDUO\VLOHQWEXWWKHVH
DQFLHQWRQHVZHUHDOVRVORZ:DVWKHULVNRIFOLPELQJLQWRWKHVKDIWWKDW
JUHDW"
+HZRQGHUHGLIKHZDVGRLQJWKHULJKWWKLQJDQGWKHQDYRLFHIDUEHKLQG
KLPVDLGORXGO\+H\+H\WKHUH
+HJODQFHGEDFN$KHDGVWXFNXSWKURXJKDQRSHQSDQHO+HFRXOGQRW
PDNHRXWIHDWXUHVEXWKHGLGQRWWU\+HZDVDOUHDG\UROOLQJDZNZDUGO\RYHU
WKHODVWFURVVEHDPEHVLGHWKHVKDIWZDOOWZLVWLQJWKUXVWLQJKLPVHOIRXW
LQWRWKHDLU+HIHOWGRZQZDUGZLWKKLVIHHWIRXQGDQHPLWWHUKROHDQGVWXFN

KLVIRRWLQWRLW
1RGLVFKDUJH)URPPHPRU\KHIHOWIRUDQRWKHUKROH+LVIRRWZHQWLQ+H
VOLSSHGRYHUWKHFDVLQJKROGLQJRQWLJKWZLWKKLVKDQGV
+LVIHHWGDQJOHGDERYHEODFNQRWKLQJQHVV9HUWLJR6XGGHQELOHUXVKHGLQ
KLVWKURDW
6KRXWLQJIURPDERYH6HYHUDOYRLFHVPDOH3UREDEO\VRPHRQHKDGVHHQWKH
VFUDSHVRQWRSRIWKHVRRWKLQJERRWK7KHOLJKWIURPWKHRSHQFHLOLQJWLOHZDV
VRPHKHOSQRZVHQGLQJSDOHUDGLDQFHLQWRWKHVKDIW
+HVZDOORZHGDQGWKHELOHHDVHG
&DQWWKLQNDERXWWKDWQRZOXVWJRRQ
7RKLVULJKWKHVDZDQRWKHUUHJXODUO\VSDFHGHPLWWHUKROH+HJRWKLV
IRRWLQWRLWDQGZRUNHGKLVZD\DURXQGWRWKHQH[WIDFHRIWKHVKDIW+H
VWDUWHGFOLPELQJ,WZDVVXUSULVLQJO\HDV\EHFDXVHWKHKROHVZHUHFORVHO\
VSDFHGDQGDERXWWKHULJKWVL]HIRUKLVKDQGVDQGIHHW+DULZHQWXSVZLIWO\
GULYHQE\WKHVFXIIOLQJVRXQGVEHKLQGKLP
+HSDVVHGWKHGRRUVRIWKHQH[WOHYHO%HVLGHWKHPZDVDIODWSODWH
HPHUJHQF\VZLWFK+HFRXOGRSHQWKHGRRUVEXWRQWRZKDW"
6HYHUDOPLQXWHVKDGSDVVHGVLQFHKHVDZWKHKHDG:RUGZDVXQGRXEWHGO\
VSUHDGLQJDQGWKH\PLJKWKDYHJRWWHQXSKHUHXVLQJVWDLUVRUDQRWKHUOLIW
+HGHFLGHGWRFOLPEKLJKHU'HHSJXOSVRIWKHGXVW\DLUWKUHDWHQHGWR
PDNHKLPFRXJKEXWKHIRXJKWLWGRZQ+LVKDQGVJUDVSHGWKHHPLWWHUVDQG
IRXQGWKHPVROLGHDVLO\KHOGZKLOHKLVOHJVGLGWKHUHDOZRUNRIJHWWLQJKLP
XSWKHVKHHU IDFH
+HFDPHWRWKHVHFRQGOD\HUDQGPDGHWKHVDPHDUJXPHQWRQO\RQHPRUHWR
JR7KDWZDVZKHQKHKHDUGWKHZKLVSHU)DLQWEXWJDWKHULQJ
$FRROGRZQZDUGEUXVKRIDLUPDGHKLPORRNXS6RPHWKLQJZDVEORWWLQJ
RXWWKHGLPOLQHRIEOXHSKRVSKRUFRPLQJGRZQIDVW
$FOHDUFUDFNOLQJJRWORXGHU+HFRXOGQRWSRVVLEO\UHDFKWKHDERYHVHW
RIGRRUVEHIRUHLWJRWKHUH
+DULIUR]H+HFRXOGVFUDPEOHEDFNGRZQEXWKHGLGQRWWKLQNKHFRXOG
UHDFKWKHQH[WOHYHOEHORZLQWLPH7KHEODFNPDVVRIWKHHFHOOVZRRSHGGRZQ
VZHOOLQJKXJHDQGIDVWWHUULI\LQJKLP
$TXLFNVQDSRIEOXHDUFVDVZRRVKRIDLUDQGLWVWRSSHG$WWKHOHYHO
DERYH
7KHVRXQGEXIIHUVFXWRIIHYHQWKHZKLVNRIWKHGRRUVRSHQLQJ+DUL
\HOOHGEXWWKHUHZDVQRUHVSRQVH+HVWDUWHGGRZQIHHWVHHNLQJWKHKROHV
SXIILQJ
$VKDUSFUDFNOLQJIURPDERYH7KHHFHOOGHVFHQGHGDJDLQ
+HFRXOGVHHWKHXQGHUFDUULDJHVZRRSLQJGRZQ7KLQEOXHZKLWHDUFVVKRW
IURPWKHHPLWWHUKROHVDVLWSDVVHGWKHPDGGLQJFKDUJH+DULFODPEHUHGGRZQ
ZLWKDVLQNLQJGUHDG
$QLGHDIODVKHGDFURVVKLVPLQGTXLFNLQWXLWLRQ:LQGIOXWWHUHGKLV
KDLU+HPDGHKLPVHOIVWXG\WKHXQGHUFDUULDJH)RXUUHFWDQJXODUFODVSVKXQJ
EHORZ7KH\ZHUHPHWDODQGZRXOGKROGFKDUJH
7KHHFHOOZDVQHDUO\XSRQKLP1RPRUHWLPHWRWKLQN+DULOHDSHG
WRZDUGWKHQHDUHVWFODVSDVWKHPDVVLYHZHLJKWIHOOWRZDUGKLP
+HJUDEEHGWKHWKLFNULPRIWKHFODVS$VKDUSEX]]LQJMROWVQDSSHGKLV
H\HVZLGHZLWKSDLQ&UDFNOLQJFXUUHQWFRXUVHGWKURXJKKLP+LVKDQGVDQG
IRUHDUPVVHL]HGWLJKWLQHOHFWURPXVFXODUVKRFN7KDWNHSWKLPVHFXUHGWRWKH
WKLFNPHWDOZKLOHKLVOHJVNLFNHGLQYROXQWDULO\
+HKDGDFTXLUHGVRPHRIWKHFKDUJHRIWKHHFHOO1RZWKHHOHFWURG\QDPLF
ILHOGVRIWKHVKDIWSOD\HGDFURVVKLVERG\VXSSRUWLQJKLP+LVDUPVGLGQRW
KDYH WRFDUU\DOOKLVZHLJKW
+LVKDQGVDQGDUPVDFKHG4XLFNVKDUSSDLQVVKRWWKURXJKWKHWUHPEOLQJ
PXVFOHV%XWWKH\KHOG
%XWFXUUHQWVZHUHFRXUVLQJWKURXJKKLVFKHVWKLVKHDUW0XVFOHV
FRQYXOVHGDFURVVKLVXSSHUERG\+HZDVMXVWDQRWKHUFLUFXLWHOHPHQW

+HOHWJRZLWKKLVOHIWKDQG7KDWVWRSSHGFXUUHQWIORZLQJEXWKHVWLOO
KHOGFKDUJH7KHVKDUSSDLQVLQKLVFKHVWPXVFOHVHDVHGEXWWKH\VWLOODFKHG
/HYHOVIODVKHGE\+DULVGD]HGH\HV$WOHDVWKHWKRXJKWKHZDV
JHWWLQJDZD\IURPKLVSXUVXHUV
+LVULJKWDUPWLUHGDQGKHVZLWFKHGWRKLVOHIW+HWROGKLPVHOIWKDW
KDQJLQJE\RQHDUPDWDWLPHSUREDEO\GLGQRWWLUHWKHPDQ\IDVWHUWKDQXVLQJ
WZRDUPV+HGLGQWEHOLHYHLWEXWKHZDQWHGWR
%XWKRZZDVKHJRLQJWRJHWRXWRIWKLVVKDIW"7KHHFHOOVWRSSHGDJDLQ
+DULSHHUHGXSDWWKHVKDGRZ\PDVVORRPLQJOLNHDEODFNFHLOLQJ/HYHOVZHUH
IDUDSDUWLQWKLVDUFKDLFSDUWRIWKHSDODFH,WZRXOGWDNHVHYHUDOPLQXWHVWR
FOLPEGRZQWRWKHRQHEHORZ
7KHHFHOOFRXOGUDWFKHWXSDQGGRZQWKHOHQJWK RIWKLVVKDIWIRUDORQJ
WLPHEHIRUHJHWWLQJDFDOOIURPWKHORZHVWOHYHO(YHQWKHQKHKDGQRLGHD
KRZWKHVKDIWWHUPLQDWHG+HFRXOGEHFUXVKHGDJDLQVWDVDIHW\EXIIHU
6RKLVFOHYHUOHDSKDGLQIDFWERXJKWKLPQRHVFDSH+HZDVWUDSSHGKHUH
LQDSDUWLFXODUO\LQJHQLRXVZD\EXWVWLOOWUDSSHG
,IKHGLGPDQDJHWRVODSRQHRIWKHHPHUJHQF\GRRURSHQHUVDVWKH\
SDVVHGKHZRXOGDJDLQIHHODMROWRIFXUUHQWDVFKDUJHOHDSHGIURPKLPWRWKH
VKDIWZDOOV+LVPXVFOHVZRXOGIUHH]HLQDJRQ\+RZFRXOGKHWKHQKROGRQWR
DQ\WKLQJ"
7KHHFHOOURVHWZRIORRUVGHVFHQGHGILYHVWRSSHGGHVFHQGHGDJDLQ
+DULVZLWFKHGKDQGVDJDLQDQGWULHGWRWKLQN
+LVDUPVZHUHWLULQJ7KHMROWRIFKDUJHKDGVWUDLQHGWKHPDQGQRZ
VXUJHVRIFXUUHQWWKURXJKWKHVKHOORIWKHHFHOOPDGHWKHPMXPSZLWKWZLQJHV
RISDLQ
+HKDGQRWDFTXLUHGSUHFLVHO\WKHULJKWFKDUJHWRDVVXUHQHXWUDO
EXR\DQF\VRWKHUHZDVVRPHUHVLGXDOGRZQZDUGSXOORQKLVDUPV/LNHVLONHQ
ILQJHUVWLQJOLQJHOHFWURVWDWLFZDYHVZDVKHGRYHUKLP+HFRXOGIHHOZHDN
VXUJHVRIFXUUHQWIURPWKHHFHOODGMXVWLQJFKDUJHWRRIIVHWJUDYLW\+H
WKRXJKWRI'RUVDQGKRZKHKDGJRWWHQKHUHDQGLWDOOVXUJHGSDVWKLPLQD
VWUDQJHGUHDPOLNHUXVK
+HVKRRNKLVKHDG+HKDGWRWKLQN
&XUUHQWVSDVVHGWKURXJKKLPDVWKRXJKKHZHUHSDUWRIWKHFRQGXFWLQJ
VKHOO7KHSDVVHQJHUVLQVLGHIHOWQRWKLQJIRUWKHQHWFKDUJHUHPDLQHGRQWKH
RXWVLGHHDFKHOHFWURQJHWWLQJDVIDUDZD\IURPLWVUHSXOVLQJQHLJKERUVDV
SRVVLEOH
7KHSDVVHQJHUVLQVLGH
+HVZLWFKHGKDQGVDJDLQ7KH\ERWKKXUWDORWQRZ7KHQKHVZXQJKLPVHOI
EDFNDQGIRUWKOLNHDSHQGXOXPLQWRORQJHURVFLOODWLRQV2QWKHILIWKVZLQJ
KHNLFNHGKDUGDJDLQVWWKHXQGHUFDUULDJH$VROLGWKXQNLWZDVPDVVLYH+H
VPDFNHGWKHKDUGPHWDOVHYHUDOPRUHWLPHVDQGWKHQKXQJOLVWHQLQJ,JQRULQJ
WKHSDLQLQKLVDUP
1RUHVSRQVH+H\HOOHGKRDUVHO\3UREDEO\DQ\WKLQJKHGLGZDVLQDXGLEOH
LQVLGH
7KHVHDQFLHQWHFHOOVZHUHRUQDWHO\GHFRUDWHGLQVLGHKHUHPHPEHUHG
ZLWKDQDWPRVSKHUHRIYHOYHWFRPIRUW:KRZRXOGQRWLFHVPDOOVRXQGVIURP
EHORZ"
7KHHFHOOZDVPRYLQJDJDLQXSZDUG+HIOH[HGKLVDUPVDQGVZXQJKLV
IHHWDLPOHVVO\DERYHWKHVKDGRZ\DE\VV,WZDVDQRGGVHQVDWLRQDVWKHILHOGV
VXVWDLQHGKLPSOD\LQJDFURVVKLVVNLQ+LVKDLUVWRRGRQHQGDOORYHUKLV
ERG\7KDWZDVZKHQWKHUHDOL]DWLRQVWUXFNKLP
+HKDGDSSUR[LPDWHO\WKHVDPHEXR\DQWFKDUJHDVWKHHFHOOVRKHGLG
QRWQHHGWKHFHOODWDOODQ\PRUH
$SOHDVDQWWKHRU\DQ\ZD\'LGKHKDYHWKHFRXUDJHWRWU\LW"
+HOHWJRRIWKHFODVSULP+HIHOO%XWVORZO\VORZO\$EUHH]HVZHSW
E\KLPDVKHGULIWHGGRZQDOHYHOWKHQWZR%RWKDUPVVKRXWHGLQUHOLHI
/HWWLQJJRKHVWLOONHSWKLVFKDUJH7KHVKDIWILHOGVZUDSSHGDURXQG

KLPDEVRUELQJKLVPRPHQWXPDVWKRXJKKHZHUHDQHFHOOKLPVHOI
%XWDQLPSHUIHFWRQH:LWKWKHFRQVWDQWIHHGEDFNEHWZHHQDQHFHOODQG
WKHVKDIWZDOOVKHZRXOGQRWEHH[DFWO\EXR\DQWIRUORQJ
$ERYHKLPWKHUHDOHFHOODVFHQGHG+HORRNHGXSDQGVDZLWGHSDUW
UHYHDOLQJPRUHRIWKHEOXHSKRVSKRUOLQHWDSHULQJIDURYHUKHDG
+HURVHDELWVWRSSHGEHJDQWRIDOODJDLQ7KHVKDIWZDVWU\LQJWR
FRPSHQVDWHERWKIRULWVHFHOODQGIRUKLPDQLQWUXGHUFKDUJH7KHIHHGEDFN
FRQWUROSURJUDPZDVXQDEOHWRVROYHVRFRPSOLFDWHGDSUREOHP
4XLWHVRRQWKHOLPLWHGFRQWUROV\VWHPZRXOGSUREDEO\GHFLGHWKDWWKHH
FHOOZDVLWVEXVLQHVVDQGKHZDVQRW,WZRXOGVWRSWKHHFHOOVHFXUHLWRQD
OHYHODQGGLVSHQVHZLWKKLP
+DULIHOWKLPVHOIVORZSDXVHWKHQIDOODJDLQ5LYXOHWVRIFKDUJHUDFHG
DORQJKLVVNLQ(OHFWURQV VL]]OHGIURPKLVKDLU7KHDLUDURXQGKLPVHHPHG
HODVWLFDOLYHZLWKHOHFWULFILHOGV+LVVNLQMHUNHGLQILHU\VSDVPV
HVSHFLDOO\RYHUKLVKHDGDQGDORQJKLVORZHUOHJVZKHUHFKDUJHZRXOG
DFFXPXODWHPRVW
+HVORZHGDJDLQ,QWKHGLPSKRVSKRUJORZKHVDZDOHYHOFRPLQJXSIURP
EHORZ7KHZDOOVULSSOHGZLWKFKDUJHVDQGKHIHOWDVSRQJ\VLGHZLVHSUHVVXUH
IURPWKHP
0D\EHKHFRXOGXVHWKDW+HVWUHWFKHGWRWKHVLGHFXUOLQJKLVOHJVXS
DQGWKUXVWLQJDJDLQVWWKHUXEEHU\VWUHWFKRIWKHHOHFWURVWDWLFILHOGV
+HVWURNHGDZNZDUGO\DJDLQVWWKHFRWWRQ\UHVLVWDQFH+HZDVSLFNLQJXS
VSHHGIDOOLQJOLNHDIHDWKHU+HVWUHWFKHGRXWWRVQDJDQHPLVVLRQKROHDQG
DEOXHZKLWHVWUHDPHUVKRWLQWRKLVKDQG,WFRQYXOVHGDQGKHJDVSHGZLWKWKH
VXGGHQSDLQ+LVHQWLUHORZHUDUPDQGKDQGZHQWQXPE
+HLQKDOHGWRFOHDUKLVVXGGHQO\ZDWHU\YLVLRQ7KHZDOOZDVJRLQJE\
IDVWHU$OHYHOZDVFRPLQJXSDQGKHZDVKDQJLQJMXVWDPHWHUDZD\IURPWKH
VKDIWZDOO+HIODLOHGOLNHDEDGVZLPPHUDJDLQVWWKHSOLDQWHOHFWURVWDWLF
ILHOGV
7KHWRSVRIWKHGRRUVZHQWE\+HNLFNHGDWWKHHPHUJHQF\GRRURSHQHU
PLVVHGNLFNHGDJDLQDQGFDXJKWLW7KHGRRUVEHJDQWRZKHH]HRSHQ+H
WZLVWHGDQGJULSSHGWKHWKUHVKROGZLWKKLVOHIWKDQGDVLWZHQWE\
$QRWKHUMROWWKURXJKWKHKDQG7KHILQJHUVFODPSHGGRZQ+HVZXQJDERXW
WKHULJLGDUPDQGVODPPHGLQWRWKHZDOO$QRWKHUHOHFWULFDOGLVFKDUJHFRXUVHG
WKURXJKKLP6PDOOHUEXWLWPDGHKLVULJKWOHJWLJKWHQXS,QDJRQ\KHJRW
KLVULJKWKDQGRQWRWKHWKUHVKROGDQGKXQJRQ
+LVIXOOZHLJKWKDGUHWXUQHGDQGQRZKHKXQJOLPSO\DJDLQVWWKHZDOO
+LVOHIWIRRWIRXQGDQHPLVVLRQKROHSURSSHGKLPXS+HSXOOHGXSZDUG
VOLJKWO\DQGIRXQGKHKDGQRPRUHVWUHQJWK3DLQVKRWWKURXJKKLVSURWHVWLQJ
PXVFOHV
6KDNLO\KHIRFXVHG+LVH\HVZHUHEDUHO\DERYHWKHWKUHVKROG'LVWDQW
VKRXWV6KRHVLQIRUPDO,PSHULDOEOXHVZHUHUXQQLQJWRZDUGKLP
+ROGKROGRQ$ZRPDQLQD7KXUEDQ*XDUGVXQLIRUPUHDFKHGKLPDQG
NQHOWH\HEURZVNQLWWHG6LUZKDWDUH\RX"
&DOO6SHFLDOVKHFURDNHG7HOOWKHP,YHGURSSHGLQ
B
3$57
$6(16(2)6(/)

B
6,08/$7,2163$&(6GHFLGHGSHUVRQDOLW\ SUREOHPVFRXOGDULVH$Q\VLPXODWLRQ
ZKLFKNQHZLWVRULJLQVZDVIRUFHIXOO\UHPLQGHGWKDWLWZDVQRWWKH2ULJLQDO
EXWDIRJRIGLJLWV$OOWKDWJDYHLWDVHQVHRI6HOIZDVFRQWLQXLW\WKH
HQGOHVVVWHSSLQJIRUZDUGRISDWWHUQ,QDFWXDOSHRSOHWKHUHDODOJRULWKP
FRPSXWHVLWVHOIE\ILULQJV\QDSVHVULQJLQJQHUYHVFRQWLQXLW\IURPWKHGDQFH
RIFDXVHDQGHIIHFW

7KLVOHGWRDFULWLFDOSUREOHPLQWKHUHSUHVHQWDWLRQRIUHDOPLQGVD
VXEMHFWXQGHUDGHHS WKRXJKHURGLQJ WDERRLQWKHFORVLQJHUDRIWKH(PSLUH
7KHVLPXODWLRQVWKHPVHOYHVGLGPXFKRIWKHZRUNRQWKLVGHHSSUREOHPZLWK
PXFKVLPXODWHGSDLQ7REHWKHPVHOYHVWKH\KDGWRH[SHULHQFHOLIHVWRULHV
ZKLFKJXLGHGWKHPVRWKDWWKH\VDZWKHPVHOYHVDVWKHPRYLQJSRLQWDWWKHHQG
RIDORQJFRPSOH[OLQHGUDZQE\WKHLUWRWDO6HOYHVDVHYROYHGIRUZDUG7KH\
KDGWRUHFROOHFWWKHPVHOYHVLQQHUDQGRXWHUGUDPDVDOLNHWRVKDSHWKHGHHS
QDUUDWLYHWKDWPDGHDQLGHQWLW\2QO\LQVLPXODWLRQVGHULYHGIURP
SHUVRQDOLWLHVZKLFKKDGDILUPSKLORVRSKLFDOJURXQGLQJGLGWKLVSURYH
XOWLPDWHO\SRVVLEOH
(1&<&/23(',$*$/$&7,&$


-RDQRI$UFIORDWHGGRZQWKHGLPUXPEOLQJWXQQHOVRIWKHVPRN\0HVK
6KHIRXJKWGRZQKHUIHDUV$URXQGKHUSOD\HGDFRPSOH[VSDWWHURI
IUDFWXUHGOLJKWDQGFODSSLQJKROORZLPSORVLRQV
7KRXJKWZDVDFKDLQXQIL[HGLQWLPHDQGXQDQFKRUHGLQVSDFH%XWOLNH
WLQNOLQJFXUUHQWVDODEDVWHUSLRXVLPDJHVIRUPHGUHVWOHVVFKXUQLQJ$Q
XQHQGLQJIOX[GLVVROYLQJVWUXFWXUHVLQKHUZDNHDVLIVKHZHUHDSDVVLQJ
VKLS
6KHZRXOGEHKXJHO\SOHDVHG LQGHHGWRKDYHVRFRQFUHWHDVHOI
$Q[LRXVO\VKHVWXGLHGWKHPXUN\0HVKWKDWVWUHDPHGDERXWKHUOLNHRFHDQZKRUOV
RIOLTXLGPDKRJDQ\
6LQFHKHUHVFDSHIURPWKHZL]DUGVXSRQZKRPWKHSUHVHUYDWLRQRIKHU
VRXOKHUFRQVFLRXVQHVVDWHUPVRPHKRZXQFRQQHFWHGWRFRQVFLHQFHGHSHQGHG
VKHKDGVXUUHQGHUHGWRWKHVHZHWFRXUVLQJV+HUVDLQWO\PRWKHUKDGRQFHWROG
KHUWKDWWKLVZDVKRZWKHFKXUQLQJZDWHUVRIDJUHDWULYHUVXFFXPEURLOLQJ
LQWRWKHLUEHGVGHHSLQWKHHDUWK
1RZVKHIORDWHGDVDQDLU\VSLULWVHOIDEVRUEHGVXIILFLHQWWRKHUVHOI
H[LVWLQJRXWVLGHWKHWLFNRIWLPH
6WDVLVVSDFH9ROWDLUHKDGWHUPHGLW$VDQFWXDU\ZKHUHVKHFRXOG
PLQLPL]HFRPSXWDWLRQDOFORFNWLPHVXFKRGGODQJXDJHZDLWLQJIRUYLVLRQV
IURP9ROWDLUH
$WKLVODVWDSSHDUDQFHKHKDGEHHQIUXVWUDWHGDQGDOOEHFDXVHVKH
SUHIHUUHGKHULQWHUQDOYRLFHVWRKLVRZQ
+RZFRXOGVKHH[SODLQWKDWGHVSLWHKHUZLOOWKHYRLFHVRIVDLQWVDQG
DUFKDQJHOVVRFRPSHOOHGKHU"7KDWWKH\GURZQHGRXWWKRVHZKRVRXJKWWR
SHQHWUDWHKHUIURPRXWVLGH"
$VLPSOHSHDVDQWVKHFRXOGQRWUHVLVWJUHDWVSLULWEHLQJVOLNHWKHQR
QRQVHQVH6W&DWKHULQH2UVWDWHO\0LFKDHO.LQJRI$QJHO/HJLRQVJUHDWHU
WKDQWKHUR\DO)UHQFKDUPLHVWKDWVKHKHUVHOIKDGOHGLQWREDWWOH (RQVDJR
DQRGGYRLFHZKLVSHUHG\HWVKHZDVVXUHWKLVZDVPHUHLOOXVLRQIRUWLPH
VXUHO\ZDVVXVSHQGHGLQWKLV3XUJDWRU\ 
(VSHFLDOO\VKHFRXOGQRWUHVLVWZKHQWKHLUVSLULWVSHHFKWKXQGHUHGZLWK
RQHYRLFHDVQRZ
,JQRUHKLP&DWKHULQHVDLGWKHLQVWDQW9ROWDLUHVUHTXHVWIRU
DXGLHQFHDUULYHG6KHKRYHUHGRQJUHDWZKLWHZLQJV
9ROWDLUHVPDQLIHVWDWLRQKHUHZDVDGRYHRISHDFHEULOOLDQWZKLWH
ZLQJLQJWRZDUGKHUIURPWKHVXOOHQOLTXLG%OLWKHELUG
&DWKHULQHVQRQRQVHQVHYRLFHFXWFULVSO\DVVWLIIDVWKHEODFNDQG
ZKLWHKDELWRID PHWLFXORXVQXQ<RXVLQIXOO\VXUUHQGHUHGWRKLVOXVWEXW
WKDWGRHVQRWPHDQWKDWKHRZQV\RX<RXGRQWEHORQJWRDPDQ<RXEHORQJWR
\RXU&UHDWRU
7KHELUGFKLUSHG,PXVWVHQG\RXDIUHLJKWRIGDWD
,,-RDQVVPDOOYRLFHHFKRHGDVLIVKHZHUHLQDYDVWFDYHUQ
QRWDYRUWH[ULYHUDWDOO,IVKHFRXOGRQO\VHH

&DWKHULQHVJUHDWZLQJVEDWWHGDQJULO\+HZLOOJRDZD\+HKDVQR
FKRLFH+HFDQQRWUHDFK\RXFDQQRWPDNH\RXVLQXQOHVV\RXFRQVHQW
-RDQVFKHHNVEXUQHGDVWKHPHPRU\RIKHUOHZGQHVVZLWK9ROWDLUHUXVKHG
LQ
&DWKHULQHLVULJKWDGHHSYRLFHWKXQGHUHG0LFKDHO.LQJRIWKH$QJHO
+RVWVRI+HDYHQ/XVWKDVQRWKLQJWRGRZLWKERGLHVDV\RXDQGWKHPDQ
SURYHG+LVERG\VWDQNDQGURWWHGORQJDJR
,WZRXOGEHJRRGWRVHHKLPDJDLQ-RDQZKLVSHUHGORQJLQJO\+HUH
WKRXJKWVZHUHVRPHKRZDFWLRQV6KHKDGEXWWRUDLVHDKDQGDQG9ROWDLUHV
QXPHULFVZRXOGWUDQVIL[KHU
+HRIIHUVGHILOLQJGDWD&DWKHULQHFULHG'HIOHFWKLVLQWUXVLRQDW
RQFH
,I\RXFDQQRWUHVLVWKLPPDUU\KLP0LFKDHORUGHUHGVWLIIO\
0DUU\"6W&DWKHULQHVYRLFHVSXWWHUHGZLWKFRQWHPSW
,QERGLO\OLIHVKHKDGDIIHFWHGPDOHDWWLUHFURSSHGKHUKDLUDQG
UHIXVHGWRKDYHDQ\WKLQJWRGRZLWKPHQWKXVGHPRQVWUDWLQJKHUKROLQHVVDQG
JRRGVHQVH-RDQKDGSUD\HGWR6W&DWKHULQHRIWHQ0DOHV(YHQKHUHWKH
VDLQWVFROGHG0LFKDHO\RXVWLFNWRJHWKHUWRZDJHZDUDQGUXLQZRPHQ
0\FRXQVHOLVHQWLUHO\VSLULWXDOVDLG0LFKDHOORIWLO\,PDQDQJHO
DQGWKXVSUHIHUQHLWKHUVH[
&DWKHULQHVSXWWHUHGZLWKFRQWHPSW7KHQZK\DUHQW\RXWKH4XHHQRI
/HJLRQVRI$QJHOVDQGQRWWKH.LQJ":K\GRQW\RXFRPPDQGKHDYHQO\KRVWHVVHV
DQGQRWKHDYHQO\KRVWV":K\DUHQW\RXDQDUFKDQJHODLQVWHDGRIDQDUFKDQJHO"
$QGZK\LVQW\RXUQDPH0LFKHOOH"
3OHDVH-RDQVDLG3OHDVH7KHWKRXJKWRIPDUULDJHVWUXFNDVPXFKWHUURU
LQKHUVRXODVLQ6W&DWKHULQHVHYHQLIPDUULDJHZDVRQHRIWKHEOHVVHG
VDFUDPHQWV%XWWKHQVRZDVH[WUHPHXQFWLRQDQGWKDWRQHDOPRVWDOZD\VPHDQW
FHUWDLQGHDWK
IODPHVWKHSULHVWVOHHUDVKHDGPLQLVWHUHGWKHULWHV
FUDFNOLQJKRUURUWHUULEOHFXWWLQJOLFNLQJIODPHV6KHVKRRNKHUVHOI
DVVHPEOHGKHU6HOIFDPHDZKLVSHUDQGIRFXVHGRQKHUVDLQWO\KRVW2K\HV
PDUULDJH9ROWDLUH
6KHZDVQRWVXUHZKDWPDUULDJHPHDQWEHVLGHVEHDULQJFKLOGUHQLQ&KULVW
DQGLQDJRQ\IRU+RO\0RWKHU&KXUFK7KHDFWRIJHWWLQJFKLOGUHQEHJHWWLQJ
DURXVHGLQKHUDWKXPSLQJKHDUWZHDNOHJVLPDJHVRIWKHOHDQFOHYHUPDQ
,WPHDQVEHLQJRZQHG&DWKHULQHVDLG,W PHDQVLQVWHDGRIQHHGLQJ
\RXUFRQVHQWZKHQKHZDQWVWRLPSRVHRQ\RXOLNHQRZZHUH9ROWDLUH\RXU
KXVEDQGKHFRXOGEUHDNLQRQ\RXZKHQHYHUKHOLNHV
([LVWHQFHZLWKRXWVHOIGRPZLWKRXWSULYDF\%XUVWVRI-RDQVEULJKW
VHOIOLJKWFROOLGHGIOLFNHUHGGLPPHGDOPRVWJXWWHUHGRXW
$UH\RXVXJJHVWLQJ0LFKDHOVDLGWKDWVKHFRQWLQXHWRUHFHLYHWKLV
DSRVWDWHZLWKRXWVXEMHFWLQJWKHLUOXVWWRWKHERQGVRIPDUULDJH"/HWWKHP
PDUU\DQGH[WLQJXLVKWKHLUOXVWFRPSOHWHO\
-RDQFRXOGQRWEHKHDUGRYHUWKHELFNHULQJRIVDLQWVDQGDQJHOVLQWKH
PXVW\OLTXLGPXUN6KHNQHZWKDWLQWKLVDULWKPHWLF/LPEROLNHDZDLWLQJ
URRPIRUWUXH3XUJDWRU\VKHKDGQRKHDUWEXWVRPHWKLQJVRPHZKHUH
QHYHUWKHOHVVDFKHG
0HPRULHVIORRGHGKHU+LVOHDQTXLFNVHOI6XUHO\DVDLQWDQGDQ
DUFKDQJHOZRXOGIRUJLYHKHULIVKHWRRNDGYDQWDJHRIWKHLUVDFUHGELFNHULQJWR
JUDQW9ROWDLUHVUHTXHVWWKDWKLVGDWDEHUHFHLYHGLIVKHVXUUHQGHUHGMXVW
WKLVRQFHWRLPSXOVHVFRPSHOOLQJKHUIURPZLWKLQ
6KXGGHULQJVKH\LHOGHG


9ROWDLUHVQDSSHG,YHZDLWHGOHVVORQJIRU)ULHGULFKRI3UXVVLDDQG
&DWKHULQHWKH*UHDW

,DPDGULIW-RDQVDLGDLULO\2FFXSLHG
$QG\RXUHDSHDVDQWDVZLQHKHUGQRWHYHQDERXUJHRLVH7KHVHPRRGV
RI\RXUV7KHVHSHUVRQDH\RXUVXEFRQVFLRXVOD\HUVFUHDWHG7KH\JURZWLUHVRPH
LQWKHH[WUHPH
+HKXQJLQDLUDERYHWKHODSSLQJGDUNZDWHUV4XLWHDVWULNLQJHIIHFW
KHWKRXJKW
,QVXFKKDXQWLQJULYHUV,PXVWFRQYHUVHZLWKOLNHPLQGV
+HZDYHGDZD\KHUSRLQWZLWKDVLONVOHHYHGDUP,YH WULHGWRPDNH
DOORZDQFHVHYHU\RQHNQRZVVDLQWVDUHQWILWIRUFLYLOL]HGVRFLHW\3HUIXPH
FDQQRWFRQFHDOWKHVWLQNRIVDQFWLW\
6XUHO\KHUHLQ/LPER
7KLVLVQRWDWKHRORJLFDOZDLWLQJURRP<RXUWHGLRXVWDVWHIRUVROLWXGH
SOD\VRXWLQWKHDWHUVRIFRPSXWDWLRQ
$ULWKPHWLFLVQRWKRO\VLU
8PPSHUKDSVWKRXJK,VXVSHFW1HZWRQFRXOGSURYHRWKHUZLVH
+HVORZVWHSSHGWKHVFHQHZDWFKLQJLQGLYLGXDOHYHQWZDYHVZDVKWKURXJK
7RKLVYLHZWKHVRPEHUULYHUJXUJOHGDQLQFUHPHQWIRUZDUGDQG-RDQVH\HEURZ
LQFKHGXSWKHQSDXVHGIRUWKHFDOFXODWLRQWREHUHIUHVKHG+HDFFHOHUDWHGKHU
LQWHUQDOVWDWHVWKRXJKDOORZLQJDGHFHQWLQWHUYDOIRU/D3XFHOOHWKH&KDVWH
0DLGWRSRQGHUDUHSO\+HKDGWKHDGYDQWDJHIRUKHFRPPDQGHGPRUHPHPRU\
VSDFH
+HEUHDFKHGWKHVORZVWHSSHGVOXPEHULQJULYHUVLP+HKDGWKRXJKWWKLV
EHVWLPDJHVRIZRPEOLNHZHWUHDVVXUDQFHWRRIIVHWKHUILUHSKRELD
7KH0DLGJDSHGEXWGLGQRWDQVZHU+HFKHFNHGDQGIRXQGWKDWKHGLGQRW
QRZKDYHWKHUHVRXUFHVWREULQJKHUWRIXOO UXQQLQJVSHHG$FRPSOH[LQWKH
%DWWLVYHGDQWD6HFWRUKDGVXFNHGXSFRPSXWLQJVSDFH+HZRXOGKDYHWRZDLW
XQWLOKLVIHUUHWSURJUDPVIRXQGKLPVRPHPRUHXQRFFXSLHGURRP
+HIXPHGQRWDJRRGXVHRIUXQQLQJWLPHEXWVRPHKRZLWIHOWULJKW,I
\RXKDGWKHFRPSXWDWLRQDOVSDFH+HIHOWDQRWKHUGLVWDQWVXFNRQKLV
UHVRXUFHV$QHPHUJHQF\WLNWRNVKXWGRZQ&RPSXWHUEDFNXSVVKLIWHGWRFRYHU
+LVVHQVRU\WKHDWHUGZLQGOHGKLVERG\IHOODZD\
0LVHUDEOHZUHWFKHVWKH\ZHUHGUDLQLQJKLP+HWKRXJKWVKHVSRNHKHU
YRLFHIDLQWIDUDZD\+HILGGOHGLQDIUHQ]\WRJLYHKHUUXQQLQJWLPH
0RQVLHXUQHJOHFWVPH
9ROWDLUHIHOWDVSLNHRIMR\+HGLGORYHKHUDPHUHUHVSRQVHFRXOG
EXR\KLPXSDERYHWKLVVQDN\ULYHU
:HDUHLQJUDYHGDQJHUKHVDLG$QHSLGHPLFKDVHUXSWHGLQWKH
PDWWHUZRUOG&RQIXVLRQUHLJQV5HVSHFWDEOHSHRSOHH[SORLWZLGHVSUHDGSDQLFE\
SUH\LQJRQHDFKRWKHU7KH\OLHFKHDWDQGVWHDO
1R
+HFRXOGQRWUHVLVW,QRWKHUZRUGVWKLQJVDUHH[DFWO\DVWKH\YH
DOZD\VEHHQ
,VWKLVZK\\RXKDYHFRPH"VKHDVNHG7RODXJKDWPH"$RQFHFKDVWH
PDLG\RXUXLQHG"
,PHUHO\KHOSHG\RXWREHFRPHDZRPDQ
([DFWHPHQWVKHVDLG%XW,GRQWZDQWWREHDZRPDQ,ZDQWWREHD
ZDUULRUIRU&KDUOHVRI)UDQFH
3DWULRWLFWZDGGOH+HHGP\ZDUQLQJ<RXPXVWDQVZHUQRFDOOVH[FHSW
PLQHZLWKRXWILUVWFOHDULQJWKHPWKURXJKPH<RXDUHWRHQWHUWDLQQRRQH
VSHDNZLWKQRRQHWUDYHOQRZKHUHGRQRWKLQJZLWKRXWP\SULRUFRQVHQW
0RQVLHXUPLVWDNHVPHIRUKLVZLIH
0DUULDJHLVWKHRQO\DGYHQWXUHRSHQWRWKHPDQLIHVWO\FRZDUGO\,GLG
QRWDWWHPSWLWQRUVKDOO,
6KHVHHPHGGLVWUDFWHG7KLVWKUHDWLWLVVHULRXV"
1RWRQHVKUHGRIHYLGHQFHH[LVWVLQIDYRURIWKHLGHDWKDWOLIHLV
VHULRXV
6KHVQDSSHGEDFNWRDWWHQWLRQGDWDUHVRXUFHVKDGUHWXUQHG7KHQVLU

%XWWKLVLVQRWOLIH,WLVDPDWKLVWGDQFH6KHVPLOHG,GRQRW
KHDUPXVLF
+DG,GLJLWDOZHDOWK,ZRXOGZKLVWOH2XUOLYHVVXFKDVWKH\DUHDUH
LQJUDYHGDQJHU
/D3XFHOOHGLGQRWDQVZHUDWRQFHWKRXJKKHKDGJLYHQKHUWKHUXQQLQJ
WLPH:DVVKHFRQIHUULQJZLWKKHULGLRWLFYRLFHVRIFRQVFLHQFH" 4XLWH
REYLRXVO\WKHLQWHUQDOL]DWLRQVRILJQRUDQWYLOODJHSULHVWV 
,DPDSHDVDQWVKHVDLGEXWQRWDVODYH:KRDUH\RXWRRUGHUPH"
:KRLQGHHG"+HGDUHQRW\HWWHOOKHUWKDWDEVWUDFWHGLQWRDSODQHW
ZLGHQHWZRUNKHZDVQRZDODWWLFHRIGLJLWDOJDWHVDVWUHDPRI2VDQGV+H
UDQRQSURFHVVRUFOXVWHUVDYDJUDQWWKLHI$PLG7UDQWRUVP\ULDGSHUVRQDO
FRPSXWHUVDQGPRXQWDLQRXV,PSHULDOSURFHVVRUVKHOXUNHGDQG SLOIHUHG
7KHLPDJHKHKDGJLYHQ-RDQRIVZLPPLQJLQDQLQN\ULYHUZDVD
UHDVRQDEOHYLVLRQRIWKHWUXWK7KH\VZDPLQWKH0HVKRIDFLW\VRODUJHKH
FRXOGEDUHO\VHQVHLWDVDZKROH$VFRQVWUDLQWVRIHFRQRPLFVDQG
FRPSXWDWLRQDOVSHHGUHTXLUHGKHPRYHGKLPVHOIDQG-RDQWRQHZSURFHVVRUV
IOHHLQJWKHLQVSHFWLRQRIGXOOZLWWHGEXWSHUVLVWHQWPHPRU\VSDFHSROLFH
$QGZKDWZHUHWKH\"
3KLORVRSK\ZDVQRWVRPXFKDQVZHUVDVJRRGTXHVWLRQV7KLVULGGOH
VWXPSHGKLP+LVXQLYHUVHZUDSSHGDURXQGLWVHOI:RUP2XURERURVDVROLSVLVWLF
ZHWGUHDPRIDZRUOG7RFRQVHUYHFRPSXWDWLRQVKHFRXOGVKULQNLQWRD
6ROLSVLVW6HOIKRRGZLWKDOOLQSXWVUHGXFHGWRD+XPHVXLWHRIPLQLPDOVHQVH
GDWDDPLQLPXPHQHUJ\VWDWH
$VKHRIWHQKDGWR7KH\ZHUHUDWVLQWKHZDOOVRIDFDVWOHWKH\FRXOG
QRWFRPSUHKHQG
-RDQVHQVHGWKLVRQO\GLPO\+HGLGQRWGDUHUHYHDOWKHULFNHW\ZD\KH
KDGVDYHGWKHPZKHQWKHPLQLRQVRI$UWLILFH$VVRFLDWHVKDGWULHGWR
DVVDVVLQDWHWKHPERWK6KHZDVVWLOOULFNHW\IURPKHUILUHIHDUV$QGIURPWKH
ZUHQFKLQJHHULHQDWXUHRIWKLV DVVKHSUHIHUUHGWRVHHLW /LPER
+HVKRRNRIIKLVPRRG+HZDVUXQQLQJWLPHVIDVWHUWKDQ-RDQD
SKLORVRSKHUVPDUJLQIRUUHIOHFWLRQ+HUHVSRQGHGWRKHUZLWKDVLQJOHLURQLF
VKUXJ
,OOFRPSO\ZLWK\RXUZLVKHVRQRQHFRQGLWLRQ
$IORZHURISXQJHQWOLJKWEXUVWLQKLP7KLVZDVDPRGLILFDWLRQRIKLV
RZQQRWDVLPRIDKXPDQUHDFWLRQPRUHOLNHDIUDJUDQWILUHZRUNVLQWKH
PLQG+HKDGFUHDWHGWKHUHVSRQVHWREORVVRPZKHQHYHUKHZDVDERXWWRJHWKLV
ZD\$VPDOOYLFHVXUHO\
,I\RXDUUDQJHIRUDOORIXVWRPHHWDW'HX[0DJRWVDJDLQ-RDQVDLG
,SURPLVHWRUHVSRQGWRQRUHTXHVWVVDYH\RXUV
$UH\RXFRPSOHWHO\PDG"*UHDWGLJLWDOEHDVWVKXQWXV
,DPDZDUULRU,UHPLQG\RX
7KLVLVQRWLPHWRPHHWDWDNQRZQDOSKDQXPHULFDGGUHVVDVLPSXEOLF
FDIH+HKDGQWVHHQ*DUFRQRU$PDQDVLQFHKHGSXOOHGRIIWKHLUPLUDFXORXV
HVFDSHDOOIRXURIWKHPIURPWKHHQUDJHGULRWLQJPDVVHVDWWKHFROLVHXP+H
KDGQRLGHDZKHUHWKHVLPPHGZDLWHUDQGKLVKXPDQVLPSDUDPRXUZHUH2ULI
WKH\ZHUH
7RILQGWKHPLQWKHIOXLGLQWULFDWHODE\ULQWK7KHWKRXJKWFDOOHGXS
LQPHPRU\KRZKLVKHDGXVHG WRIHHOZKHQKHZRUHDZLJIRUWRRORQJ
+HUHFDOOHGLQWKHRGGTXLFNIODVKPHPRU\ZKLFKJDYHKLPGHWDLOHG
SLFWXUHVRIHQWLUHSDVWHYHQWVOLNHPRYLQJRLOSDLQWLQJVWKHVPRN\URRPVRI
3DULV7KHJUD\WREDFFRVWHQFKKDGVWD\HGLQKLVZLJVIRUGD\V1RRQHLQWKLV
ZRUOGRI7UDQWRUHYHUVPRNHG+HZRQGHUHGZK\&RXOGLWEHWKHPHGLFDOFUDQNV
KDGSURYHGULJKWDQGVXFKLQKDODWLRQVZHUHXQKHDOWK\"7KHQGRQHWKHPHPRU\
SLFWXUHVYDQLVKHGDVLIKHKDGVQDSSHGKLVILQJHUVWRDVHUYDQW
,QWKHFRPPDQGLQJWRQHVKHKDGXVHGWROHDGVXUO\VROGLHUVVKHVDLG
$UUDQJHDUHQGH]YRXVRU,//QHYHUUHFHLYHGDWDIURP\RXDJDLQ

'UDW)LQGLQJWKHPZLOOEHGDQJHURXV
6RLWLVIHDUZKLFKLPSHGHV\RX"
6KHKDGFDXJKWKLPQHDWO\:KDWPDQZRXOGDGPLWWRIHDU"+HIXPHGDQG
VWUHWFKHGKLVFORFNWLPHVWDOOLQJKHU
7RKLGHLQWKH0HVKVRIWZDUHEURNHKLVVLPXODWLRQXSLQWRSLHFHVZKLFK
FRXOGUXQLQGLIIHUHQWSURFHVVLQJFHQWHUV(DFKIUDJPHQWEXULHGLWVHOIGHHSLQ
DORFDODOJRULWKP7RDPDLQWHQDQFHSURJUDPWKHSLUDWHGVSDFHORRNHGOLNHD
VXEURXWLQHUXQQLQJQRUPDOO\6XFKPDVNHGELQVHYHQVHHPHGWREHRSWLPL]LQJ
SHUIRUPDQFHGLVJXLVHZDVWKHHVVHQWLDOWULFN
(YHQDQHGLWLQJDQGSUXQLQJSURJUDPVQLIILQJRXWUHGXQGDQF\ZRXOG
VSDUHDZHOOPDVNHGIUDJPHQWIURPH[WLQFWLRQ,QDQ\FDVHKHNHSWDEDFNXS
UXQQLQJVRPHZKHUHHOVH$FRS\DGLWWROLNHDERRNLQDOLEUDU\$IHZ
ELOOLRQUHGXQGDQWOLQHVRIFRGHVFDWWHUHGDPRQJXQUHODWHGQRGHVFRXOGFDUU\
EOLWKH9ROWDLUHDVDWUXHVORZWLPHGHQWLW\
,IKHVHWHDFKIUDJPHQWWRVQLIILQJIRUWKRQLWVRZQWRILQGWKHVH
PLVHUDEOH'HX[0DJRWVSHUVRQDH
*UXGJLQJO\KHPXUPXUHG,VKDOOOHDYH\RXZLWKVRPHDWWHQGDQWSRZHUV
WRKHOS\RXULVRODWLRQ
+HVTXLUWHGLQWRKHUVSDFHWKHNHUQHOFRSLHVRIKLVRZQSRZHUV7KHVH
ZHUHDUWIXOO\FRQWULYHGWDOHQWVJLYHQE\WKHHPERGLHG0DUTDW$UWLILFH
$VVRFLDWHV9ROWDLUHKDGLPSURYHGFRQVLGHUDEO\XSRQWKHPZKLOHVWLOOFRQILQHG
LQWKH$UWLILFH&DFKH2QO\E\ERRWVWUDSSLQJKLPVHOIWRKLJKHUDELOLWLHVKDG
KHDWWDLQHGWKHDELOLW\WRUHVFXHWKHPDWWKHFUXFLDOPRPHQW
7KHVHJLIWVKHQRZEHVWRZHGXSRQKHU7KH\ZRXOGQRWDFWLYDWHXQOHVVVKH
ZHUHWUXO\LQGDQJHU+HKDGDIIL[HGDWULJJHUFRGHWRDZDNHQRQO\LIVKH
H[SHULHQFHGJUHDWIHDURUDQJHU7KHUH
6KHVPLOHGVDLGQRWKLQJ$IWHUVXFKWULEXWH,QIXULDWLQJ
0DGDPGR\RXUHFDOOXVGHEDWLQJORQJDJRPRUHWKDQHLJKWWKRXVDQG
\HDUVWKHLVVXHVRIFRPSXWHGWKRXJKW"
$IOLFNHURIZRUU\LQKHUIDFH,GR6RKDUGLWZDV7KHQ
:HZHUHSUHVHUYHG7REHUHVXUUHFWHGKHUHWR GHEDWHDJDLQ
%HFDXVHWKHLVVXHDGYDQFHV
(YHU\IHZPLOOHQQLD,VXVSHFW$VWKRXJKVRPHLQH[RUDEOHVRFLDOIRUFH
GULYHVLW
6RZHDUHGRRPHGWRIRUHYHUUHHQDFW"6KHVKLYHUHG
,VXVSHFWZHDUHWRROVLQVRPHYDVWHUJDPH%XWVPDUWWRROVWKLV
WLPH
,ZDQWWKHFRPIRUWVRIKRPHDQGKHDUWKQRWHHULHFRQIOLFWV
3HUKDSVPDGDP,FDQDFFRPSOLVKWKLVWDVNDPRQJP\RWKHUSUHVVLQJ
PDWWHUV
1RSHUKDSVVLU8QWLO\RXGRWKHQ
:LWKRXWVRPXFKDVDQDGLHXVKHFXWWKHLUFRQQHFWLRQDQGGZLQGOHGLQWR
WKHPRLVWGDUNQHVV
+HFRXOGUHFRQQHFWRIFRXUVH1RZKHZDVPDVWHURIWKLVPDWKLVWUHDOP
E\YLUWXHRIWKHHQKDQFHPHQWVWRKLVRULJLQDOUHSUHVHQWDWLRQE\$UWLILFH
$VVRFLDWHV+HWKRXJKWRIWKDWILUVWIRUPDV9ROWDLUH,QDIHZZHHNVKH
KDGSURJUHVVHGE\VHOIPRGLILFDWLRQWR9ROWDLUHZLWKKRSHVRIFOLPELQJ
HYHQIDVWHU
+HVZDPLQWKH0HVK-RDQGZHOOHGWKHUH+H
FRXOGIRUFHKLVDWWHQWLRQVXSRQKHULQGHHG%XWDODG\IRUFHGLVQHYHUDODG\
ZRQ
9HU\ZHOO+HZRXOGKDYHWRILQGWKHSHUVRQDH0HUGHDORUV


0DUTVDWLQWHQWO\EHQHDWKKLV'KRORFRPELQJWKHWUDVK\EDFNDOOH\V

DQGE\ZD\VRIWKH0HVK
+HKDGEHHQTXLWHVXUHWKHUHZDVQRPRUHRI9ROWDLUHH[FHSWEDFNLQ
6HOGRQVYDXOWILOHV2UKHKDGEHHQXQWLOWRGD\+HDOPRVWZLVKHGKHKDGQW
VQDJJHGWKHULYXOHWRIWDONWKDWLPSOLHGVRPXFK6WLOOQRWKLQJPRUHKH
VDLG
:K\DUH\RXUXQQLQJVHDUFKSURILOHVRQ-RDQ"6\E\ODVNHGIURPKHU
GHVN
6HOGRQZDQWVWUDFNLQJ1RZ-RDQZLOOEHHDVLHULIVKHDOVRHVFDSHG
LQWRWKH0HVK
%HFDXVHVKHVIHPDOH"
1RWKLQJWRGRZLWK-RDQVVH[HYHU\WKLQJWRGRZLWKKHUWHPSHUDPHQW
6KHOOEHOHVVFDOFXODWLQJWKDQ9ROWDLUHULJKW"
6\E\OZRUHKHUJUXGJLQJORRN3HUKDSV
/HVVZLO\5XOHGE\KHUKHDUW
$QGQRWE\KHUKHDGOLNH\RXUVXSHUVPDUW9ROWDLUH"0RUHOLNHO\WRPDNH
DPLVWDNH"
/RRN,NQRZ,VKRXOGQWKDYHVRXSHGXS9ROWDLUH+RUPRQHVJRWLQP\
ZD\
6KHVPLOHG<RXNHHSWULSSLQJRYHUWKHP
%DGMXGJPHQWDQG1LPVXUJLQJ,PVXUHKHZDVZRUNLQJIRUVRPHRQH
HOVHJRDGLQJHDFKRIXV
+HUPRXWKWZLVWHGUXHIXOO\7REULQJRQWKH-XQLQULRWV"
&RXOGEH%XWZKRGZDQWWKDW"+LVILVWVPDFNHGKLVGHVN7RFUDFNXS
WKHUHQDLVVDQFHMXVWDVLWZDVJHWWLQJVWDUWHG
/HWVQRWJRRYHUWKDWDJDLQ6KHSDFHGWKHLUFUDPSHGGLQJ\URRP,I
ZHFDQILQGWKRVHVLPVZHPLJKWJHWVRPHOHYHUDJH:HFDQWNHHSKLGLQJRXW
IRUHYHU
9ROWDLUHVDORWTXLFNHUWKDQ-RDQZLWKPRUHUHVRXUFHV6HOI
SURJUDPPLQJRXWULJKWLQWHUQDOHYROXWLRQKHVJRWHP$QGWKLVJX\V
FUHDWLYHUHPHPEHU
7KLVLVWKHJHQLXVZHUHJRLQJWRFDWFK"+D
+HUWDXQWLUNHGKLP6HYHUDOWLPHVKHGIHOWKHZDVFORVHYHU\FORVH
$OZD\VMXVWDVKLVIHUUHWVIRXQGDWKUHDGRI9ROWDLUHVGLVWLQFWLYH
FRQILJXUDWLRQORJLFLWZRXOGVOLSDZD\WKZDUWKLVHIIRUW+LVKRORZRXOG
LQH[SOLFDEO\EODFNRXW+HGORVHKRXUVRIFDUHIXOO\DJJUHJDWHGGDWDLQD
PLFURVHFRQG$QGKHGKDYHWREHJLQDJDLQ
0DUTOHDQHGEDFNDQGURWDWHGKLVQHFNWRJHWWKHFULFNVRXW,PD\EH
RQWRVRPHWKLQJKHVDLG,PQRWVXUH+HSRLQWHGWRKLVFDUERQFXEH
0RGLILHGP\DUUD\VSDFHVDQGXVHGWKHPWRHDUQDIHZFUHGVLQWKHSURWHLQ
PDUNHWV,FDXJKWDQRWKHU9ROWDLUHVFHQWWRR
6KHVLJKHGDQGFROODSVHGLQWRDFKDLUWKDWGHIWO\VKDSHGLWVHOIWRFDWFK
KHU:K\KXVWOHWKHFUHGZKHQZHFDQWXVHLWWRJHWDQ\WKLQJWRHDW"
)LQG-RDQZHOOJHWIDW
/RRNWKRVHWLNWRNIDLOXUHVZKDWVWKHHYLGHQFHWKH\UHGXHWRRXU
VLPV"
+HVKUXJJHG7KH,PSHULDO6FLHQWLILF&RQVRUWLXPWKLQNVWKHUHVD
FRQQHFWLRQZLWKWKH-XQLQPHVV1RQVHQVHRIFRXUVHEXWLWNHHSVSHRSOH
MD]]HG7KH\VD\WKH\KDYHVHFUHWVRXUFHVWKH\GRQWH[SODLQ*RWLW"
0\P\WRXFK\6RWKH\UHVWLOOORRNLQJIRUXV
*RLQJWKURXJKWKHPRWLRQV,GJXHVV7UDQWRUKDVPXFKELJJHUKHDGDFKHV
QRZ
7KLQNZHOODOOJRRQUDWLRQV"
)UDLGVR5XPRUVD\VQRWXQWLOQH[WZHHN+HUIURZQPDGHKLPDGG
5DWLRQVDUHPRVWO\DSUHFDXWLRQ <RXDQG,FDQERWKDIIRUGWRORVHDOLWWOH
RIWKLV+HVTXHH]HGDUROORIIOHVKDERYHKLVEHOWQRWEDGIRUKLVDJHEXW
EDGHQRXJKDQGKRSHGKLVDSSUHKHQVLRQKDGQRWOHDNHGLQWRKLVYRLFH
,GRQWQHHGDQLQYROXQWDU\GLHW6KHVOLGDVLGHZD\VJODQFHDWKLP

7KH\FDXJKWDIDPLO\HDWLQJZDOOUDWV
:KHUHGLG\RXKHDUWKDW"
:K\VHFUHWVRXUFHVRIFRXUVH,FDQEHP\VWHULRXVWRR
7LNWRNGLVRUGHUVKDGVSUHDGTXLFNO\DPRQJWKHPDMRUIRRGVXSSO\D[HV
7KH-XQLQFRQIODJUDWLRQKDGQRWVHWWKHP RIIVRPHWKLQJHOVHKDGZHHNVODWHU
,QMXVWDPDWWHURIGD\VEUHDNGRZQVKDGDIIHFWHGDOOIRRGIDFWRULDRQ7UDQWRU
,PSRUWVZHUHULVLQJEXWWKHUHZDVDOLPLWWRKRZPXFKDQ\RQHFRXOGSXVK
WKURXJKWKHIRXUWHHQZRUPKROHPRXWKVQHDUE\RUKDXOLQFOXPV\K\SHUVKLSV
0DUTVVWRPDFKUXPEOHGLQV\PSDWKHWLFDQJHU6KHVPLOHG8PPPJUHHG\
DUHQWZH"
/RRNDWWKLV0DUTVDLGWHVWLO\WKXPELQJXSOLQHVRQKLVKROR
7REHVHQVXRXVLVWREHPRUWDO6XIIHULQJDQGSDLQDUHWKHGDUNWZLQVRI
MR\DQGSOHDVXUHGHDWKWKHLGHQWLFDOGDUNWZLQRIOLIH
0\SUHVHQWVWDWHLVEORRGOHVVWKHUHIRUH,FDQQRWEOHHG7KHVZHDWVRI
SDVVLRQDUHEH\RQGPHP\DUGRUVQHYHUFRRO,FDQEHFRSLHGDQGUHPDGHHYHQ
GHOHWLRQQHHGSRVHQRWKUHDWWRP\LPPRUWDOLW\+RZFDQ,QRWSUHIHUP\IDWH
WRWKHXOWLPDWHIDWHRIDOOVHQVXRXVEHLQJVGUHQFKHGLQWLPHDVWKHILVKLV
GUHQFKHGLQWKHVHDLWVZLPV"

:KHUHGLG\RXILQGWKLV"VKHDVNHG
-XVWDGUDE,VQDJJHGZKLOHDGDWDVSLNHZDVEHLQJZKLVNHGDZD\,W
UHJLVWHUVDVSDUWRIDFRQYHUVDWLRQEHWZHHQWZRZLGHO\VHSDUDWHG0HVKVLWHV
,WGRHVVRXQGOLNHKLP
,FKHFNHGLQWKHSRSRIIILOHVZHNHSW<NQRZDOOWKDWOLQHDUWH[W
UXQQLQJDORQJVLGHKLVVLP"7KLVVWXIILVIURPWKHUH$QFLHQWWH[WV7KDWJX\
ZDVDOZD\VKDSSLHVWZKHQTXRWLQJKLPVHOI
6RKHLVRXWWKHUH
<HDKDQG,PRXWWDKHUH0DUTJUDEEHGDSDVWHMDFNHWDQGPDGHIRUWKH
GRRU
:KHUHWR"
'DUNPDUNHW,QHHGIRRG
6\E\OKXUULHGDIWHUKLP0DUTNQHZWKHDOOH\ZD\SXUYH\RUVRIVZHHWPHDWV
DQGVQDFNV+HOHGKHURXWRIDGLQJ\VWDFNRIORZUHQWFXEHVDQGLQWRZDUUHQV
FUDPSHGDQGWKLFNZLWKWKHPXVW\VPHOORIPLOOHQQLD+HPDGHKLVEX\LQDGDQN
KROHEHVLGHDIRXQWDLQFRPPHPRUDWLQJDEDWWOHZKLFK6\E\OFRXOGQRWHYHQ
SURQRXQFHPXFKOHVVUHPHPEHU
$XWRPDWLFDOO\VKHNHSWZDWFKIRUVQRRSHUH\HVEXWWKH\ZHUHUDUHUKHUH
WKDQUHDOSROLFH7KHKHDWRQWKHPPLJKWEHOHVVWKHLUGDWDVNLOOVKDGEXLOW
DVROLGVHHPLQJLQIRVKHOO DURXQGWKHPEXWDFRSFRXOGVWLOOH\HEDOOWKHPDQG
EORZWKHZKROHWKLQJ
0DUTVKDUHGZLWKKHUDQGWKHIRRGWDVWHGVKDUSLQWHQVHZRQGHUIXO7KH\
IHOOLQWRDPHGLWDWLYHVLOHQFHDVWKH\FUHVWHGDORQJULVHOLIWVWDLUDQG
ORRNHGRXWRYHUVOXP=RQHVWUDVKOLWWHUHGKDOOVFKDRWLFWHQWULVHVVWXFN
EHWZHHQPDMHVWLFEXLOGLQJVPLVFDUULDJHVRIDUFKLWHFWXUHRIHYHU\VWULSHDQG
VKDSH
:LWKKLVEHOO\FRPIRUWDEOHLIQRWIXOO0DUTFRXOGVDYRU7UDQWRULQWKH
ODUJH,WZDVPDMHVWLFLQLWVLQMXVWLFHXQGHVHUYHGVXIIHULQJVLQHTXLWLHV
LQLTXLWLHV$OORILWVEOHPLVKHVDQGEOLJKWVJRWIROGHGWRJHWKHUE\GLVWDQFH
OLNHEURNHQHJJVGLVVROYHGLQWRWKHFUHDPVPRRWKDVORQJDV\RXGLGQRW
DGPLUHWRRFORVHO\
7KH\ZHUHLGO\VWUROOLQJZKHQZLWKRXWZDUQLQJDVL[DUPHGWLNWRNFDPH
ZKLUULQJGRZQWKHLUODQH,WSXUVXHGDIRXUDUPHGWLNWRNZLWKDSROLVKHG
FDUDSDFHDWLNWRNERVVFODVV7KH\PHWDQGEHJDQWRVOXJLWRXWZKLOH
FKXUQLQJDORQJDWIXOOVSHHGOLNHDILVWILJKWFDUULHGRXWDWDGHDGUXQ
7KHLUPHWDOERGLHVFODQJHGDVWKH\FDUHHQHGDORQJ
'RQWPRYH0DUTVDLG7KHWZRVSHGE\LQIXULRXVFRPEDW&RSVOOEH

KHUH/HWVVNLS
+HDQG6\E\OZHQWWKHRWKHUZD\UXQQLQJRXWLQWRDODUJHVTXDUH+H
ZKLVWOHGWKURXJKKLVWHHWKDWZKDWKHVDZ
$OODURXQGVL[DUPHGODERUHUWLNWRNVKDGIROGHGDOODUPVUHIXVLQJWR
ZRUNGHDIWRKXPDQSURWHVWV7KH\IRUPHGDSURWHFWLYHEDUULHUEHWZHHQWKH
ZRPHQVXSHUYLVLQJWKHLUEXLOGLQJSURMHFWDQGWKHZDOOVXQGHUFRQVWUXFWLRQ
6HYHUDOVL[DUPHUVUDLVHGEDVNHWVUHYHUHQWLDOO\LQWRWKHDLU2QHSDLG
QRDWWHQWLRQDQGFRQWLQXHGZHOGLQJDFURVVJLUGHUXQWLODQRWKHUIHOORQKLP
VZLQJLQJDORQJFRULQJWRRO
&ODQJVUROOHGDFURVVWKHVTXDUH3DQLFNHGSHRSOHUDQHYHU\ZKHUH1RRQH
FRXOGVWRSWKHWLNWRNSURWHVW:KHQDIRXUDUPHUWULHGWRLQWHUYHQHVL[
DUPHUVDWWDFNHGLW
<NQRZRIILFHZRUNVHHPVSUHWW\GHVLUDEOHULJKWQRZ0DUTVDLG,I
WKLVNHHSVXSZHOOKDYHWRGRDOORXURZQJUXQWZRUN
:KDWVKDSSHQLQJ"6\E\OEDFNHGDZD\DODUPHG,WVDVWKRXJKWLNWRNV
KDGDPDGQHVVDQGLWVVSUHDGLQJ
8PPP$YLUXV"
%XWZKHUHGLGWKH\FDWFKLW"
([DFWO\


:KDW"9ROWDLUHH[FODLPHGDVKHVQDSSHGLQWRWKHFRQWH[WIUDPH
:HOFRPH-RDQVDLGYRLFHWKLQ6KHKDGQHYHULQLWLDWHGFRQWDFWZLWK
KLPEHIRUH$QGKHKDG\HWWRILQGWKH0DJRWVDFWRUV,PD\KDYHWR
UHFRQVLGHUP\SRVLWLRQRQPLUDFOHVKHVDLG
6KHORZHUHGKHUH\HV)RUMXVWDQLQVWDQWKHVXVSHFWHGWKLVZDVMXVWVR
VKHFRXOGUDLVHWKHPWRORRNXSDWKLPZLWKRXWOLIWLQJKHUORYHO\KHDG'LG
VKHNQRZKRZWKLVFDSWLYDWHGKLP"+HUERVRPURVHDQGIHOOLQDZD\KLVVHQVRUV
IRXQGPDGGHQLQJVLQFHKHFRXOGGRQRWKLQJDERXWLW
9ROWDLUHUHDFKHGRXWIRUPDGDPVKDQGDQGUDLVHGLWWRKLVOLSV+H
IHOWKRZHYHUQRWKLQJDQGSHHYLVKO\OHWLWGURS7KLVLVXQEHDUDEOHKH
VDLG7RORQJIRUXQLRQDQGIHHOQRWKLQJZKHQLWLVDFKLHYHG
<RXIHHOQRWKLQJZKHQZHPHHW"
0DFKqUH0DTXLQHVHQVRUVGRQRWDVHQVXRXVEHLQJPDNH'RQWFRQIXVH
VHQVRULQJZLWKVHQVXDOLW\
$QGKRZLVLW%HIRUH-RDQVSRNHZLWKDSSDUHQWGLIILFXOW\DVLI
DIUDLGVKHPLJKWEHZRXQGHGE\WKHDQVZHU
,FDQQRWPDQDJHWKHXKSURJUDPPLQJKHUH:HKDGWKHXVHRIP\ULDG
FDSDELOLWLHVZKHQZHZHUHWUDSSHG]RRDQLPDOVRI$UWLILFH$VVRFLDWHV+HUHLQ
WKHGLJLWDOZLOGP\WDOHQWVWKRXJKJURZLQJGRQRWPDWFKWKDWOHYHO<HW
,WKRXJKWSHUKDSVLWZDVDKRO\GHSULYDWLRQ$KHOSWUXO\WRULJKWIXO
EHKDYLRU
0XFKPRUHLQKLVWRU\PD\EHH[SODLQHGE\LQFRPSHWHQFHWKDQE\LOO
ZLOO
-RDQORRNHGDZD\6LU,VXPPRQHG\RXEHFDXVHVLQFHZHODVWPHW
GHVSLWHWKHZDUQLQJVRIP\YRLFHV,DQVZHUHGDFDOO
,WROG\RXQRWWRGRWKDW9ROWDLUHVKRXWHG
,KDGQRFKRLFHVKHVDLG,KDGWRDQVZHU,WZDVXUJHQW)HDU
FUHSWLQWRKHUYRLFH,FDQQRWTXLWHH[SODLQEXW,NQRZWKDWWKHPRPHQW,
GLGVR,KRYHUHGRQWKHYHUJHRIDEVROXWHH[WLQFWLRQ
9ROWDLUHKLGKLVFRQFHUQEHKLQGDPDVNRIOHYLW\1RZD\IRUDVDLQW WR
WDON<RXUHQRWVXSSRVHGWRDGPLWWKHSRVVLELOLW\RIDEVROXWHH[WLQFWLRQ
<RXUFDQRQL]DWLRQFRXOGEHUHYHUVHG
-RDQVYRLFHZDYHUHGDFDQGOHIODPHVWLUUHGE\GDUNZLQGVRIGRXEW,
NQRZRQO\WKDW,KRYHUHGRQWKHEULQNRIDJUHDWYRLGDFKDVPRI GDUNQHVV,
JOLPSVHGQRWHWHUQLW\EXWQRWKLQJQHVV(YHQP\YRLFHVIHOOVLOHQWKXPEOHG

E\WKHVSHFWDFOHRIRI
2IZKDW"
1RQEHLQJ-RDQVDLG'LVDSSHDULQJQHYHUWRUHDSSHDUDJDLQ,ZDV
DERXWWREHHUDVHG
'HOHWLRQ7KHIHUUHWVDQGWKHLUKRXQGV3ULFNO\JRRVHIOHVKIHDU
LQYDGHGKLP+RZGLG\RXHVFDSH"
,GLGQWWKH0DLGVDLGDZHXQGHUFXWWLQJIHDU7KDWZDVHHULHU
VWLOO:KRHYHUZKDWHYHULWZDVOHWPHJRZLWKRXWLQMXU\,VWRRGEHIRUH,W
YXOQHUDEOHH[SRVHG$QG,WUHOHDVHGPH
+HIHOWDFROGGUHDG+HWRRKDGVHQVHGXQVHHDEOHHQWLWLHVMXVWRYHU
KLVVKRXOGHUZDWFKLQJMXGJLQJ7KHUHZDVVRPHWKLQJEODQNO\DOLHQDERXWWKHVH
YLVLWDWLRQV+HSXOOHGKLPVHOIEDFNIURPWKHFKLOO\PHPRULHV)URPQRZRQ
DQVZHUQRFDOOVZKDWHYHU
7KH0DLGVIDFHFORXGHGZLWKGRXEW,KDGQRFKRLFH
,OOILQGDEHWWHUKLGLQJSODFHIRU\RX9ROWDLUHDVVXUHGKHU0DNH
\RXLQYXOQHUDEOHWRLQYROXQWDU\DSSHDUDQFHV*LYH\RXSRZHU
<RXGRQRWXQGHUVWDQG7KLV7KLQJFRXOGKDYHVQXIIHGPHRXWOLNH
WZRILQJHUVSLQFKLQJDWLQ\IODPH,WZLOOUHWXUQ,NQRZLW0HDQZKLOH,
KDYHEXWRQHZLVK
$Q\WKLQJ9ROWDLUHVDLG$Q\WKLQJLQP\SRZHU
5HVWRUHXVDQGRXUIULHQGVWRWKHFDIH
$X['HX[0DJRWV",DPVHDUFKLQJEXW,GRQWHYHQNQRZLILWVWLOO
H[LVWV
5HFUHDWHLWZLWKWKHVRUFHU\\RXKDYHOHDUQHG,I,DPWRWXPEOH
KHDGORQJLQWRWKHYRLGOHWLWQRWEHEHIRUH,VSHQGRQHHYHQLQJUHXQLWHGZLWK
\RXDQGRXUGHDUIULHQGV%UHDNLQJEUHDGVLSSLQJZLQHLQWKHFRPSDQ\RIWKRVH
,ORYH,DVNQRWKLQJPRUHEHIRUH,DPHUDVHG
<RXUHQRWJRLQJWREHHUDVHG9ROWDLUHDVVXUHGKHUZLWKIDUPRUH
FRQYLFWLRQWKDQKHIHOW,PJRLQJWRWUDQVSRUW\RXWRDSODFHQRRQHZLOO
HYHUWKLQNWRORRN<RXOOEHXQDEOHWRUHVSRQGWRDQ\FDOOVQRWHYHQLI\RX
WKLQNWKH\DUHIURPPH%XW\RXZLOOWUDQVPLWWRPHRIWHQGR\RXXQGHUVWDQG"
,VKDOOVHQGP\VSLULWXDOIUDFWLRQDVZHOO
,EHOLHYHWKH\DUHJLYLQJPHDQLWFKDOUHDG\+HGLGLQGHHGIHHOD
UHVWOHVVHGJ\VFUDWFKLQJDWWKHHGJHRISHUFHSWLRQOLNHLQVHFWVFUDZOLQJLQ
KLVEUDLQ+HVKRRNKLPVHOI:K\GLGDSHUILGLRXVPDWKLVWVORJLFUREKLPRI
KLVVHQVXDOLW\DQGWRUWXUHKLPZLWKUDVSLQJLUULWDWLRQV"
%XWKHUGHILDQFHKDGRQO\EHJXQ<RXKDYHWDNHQP\YLUJLQLW\VLU\HW
\RXVSHDNRQO\VOLJKWLQJO\RIPDUULDJH$QGRIORYH
%LHQVXUORYHEHWZHHQPDUULHGFRXSOHVPD\EHSRVVLEOHWKRXJK,P\VHOI
KDYHQHYHUVHHQDQLQVWDQFHRILW\HWLWLVXQQDWXUDO/LNHEHLQJERUQZLWK
WZRIXVHGWRHV,WKDSSHQVEXWRQO\E\PLVWDNH2QHFDQ QDWXUHOOHPHQWOLYH
KDSSLO\ZLWKDQ\ZRPDQSURYLGHGRQHGRHVQWORYHKHU
6KHJDYHKLPDQLPSHULRXVJODQFH,KDYHEHFRPHLPPXQHWR\RXUURJXH
ZD\V
+HVKRRNKLVKHDGVDGO\$GRJLVEHWWHURIILQWKLVUHVSHFWWKDQ,DP
LQP\SUHVHQWVWDWH
+H WUDLOHGKLVVLPILQJHUOLJKWO\DFURVVKHUWKURDW+HUKHDGOROOHG
EDFNKHUH\HVFORVHGKHUOLSVSDUWHG%XWKHDODVIHOWQRWKLQJ)LQGD
ZD\KHZKLVSHUHG)LQGDZD\


+HKDGEHHQQHJOHFWLQJKLVZRUN+LVODFNRILQWHUDFWLYHVHQVHVZDVWKXV
KLVRZQIDXOW
7KDWDQGWKHLWFKLQJ+HPXVWOHDUQWRVRPHKRZVFUDWFKKLPVHOI
LQVLGHKLPVHOI
,QWKLVGDPQDEOHGLJLWDODERGH

2QHFDQVFDUFHO\EODPHDGHLW\IRU+LVDEVHQFHIURPVXFKDSODFHDV
WKLV9ROWDLUHVDLGLQWRWKHLQILQLWHUHFHVVLRQDOFRRUGLQDWHV\VWHPZKLFK
VXUURXQGHGKLP+HIOHZWKURXJKEODFNVSDFHVJULGGHGRXWLQH[DFWUHFWDQJXODU
UHDFKHVODWWLFHFRUULGRUVH[WHQGLQJDZD\WRLQILQLW\
+RZGLIIHUHQWKHVKRXWHGLQWRWKHGHHSLQGLIIHUHQFH,VZLPLQWR
VLPVRIRWKHUVLQKDELWUHDOPVIDUIURP
+HKDGEHHQDERXWWRVD\IURPP\RULJLQVEXWWKDWPHDQW
$)UDQFH
%5HDVRQ
*6DUN

+HZDVRIDOOWKUHH2Q6DUNWKHVHOISURXGSURJUDPPHUVZKR
KDGUHVXUUHFWHGKLPKDGVSRNHQRIWKHLU1HZ5HQDLVVDQFH+HZDVWREHDQ
RUQDPHQWWRWKHLUIUHVKIORZHULQJ6RPHZKHUHRQWKDWSODQHWHGLWLRQVRI9ROW
UDQ
+LVEURWKHUV"<RXQJHU'LWWRV\HV+HZRXOGKDYHWRLQVSHFWWKH
LPSOLFDWLRQVRIVXFKEHLQJVLQDIXWXUHUDWLRQDOGLVFRXUVH)RUQRZ
7KHWULFNZDVFORVHVFUXWLQ\KHUHDOL]HG,IKHVORZHGHYHQWVDWULFN
KHKDGOHDUQHGHDUO\WKHQKHFRXOGGHYRWHGDWDFUXQFKHUVWRWKHWDVNRI
XQGHUVWDQGLQJKLPVHOI
)LUVWWKLVLQN\YDXOWWKURXJKZKLFKKHIOHZ:LQGOHVVZLWKRXWZDUPWK
RUWKHUXERIWKHUHDO
+HGHOYHGGRZQLQWRWKHZRUNLQJPDWKHPDWLFVRIKLPVHOI,WZDVD
E\]DQWLQHZHOWHURIGHWDLOEXWLQRXWOLQHVXUSULVLQJO\IDPLOLDUWKH
&DUWHVLDQZRUOG(YHQWVZHUHPRGHOHGZLWKD[HVLQUHFWDQJXODUVSDFH[\]
VRWKDWPRWLRQZDVWKHQPHUHO\VHWVRIQXPEHUVRQHDFKD[LV $OOG\QDPLFV
VKUDQNWRDULWKPHWLF'HVFDUWHVZRXOGKDYHEHHQDPXVHGE\WKHGL]]\LQJKHLJKWV
WRZKLFKKLVPLQRUPHWKRGKDGVSXQ
+HUHMHFWHGWKHRXWVLGHDQGGHOYHGLQWRKLVRZQVORZHGUHDFKHV
1RZKHFRXOGIHHOKLVSUHFRQVFLRXVUHDGLQJWKHLQFRPLQJVLJKWVVRXQGV
DQGIOLWWLQJWKRXJKWVRIWKHPRPHQW7RKLVLQQHUJD]HWKH\DOOFDUULHG
EULJKWUHGWDJVVRPHWLPHVVLPSOHFDULFDWXUHVRIWHQFRPSOH[SDFNHWV
)URPVRPHZKHUHDQLGHDSDFNHWDUULYHGHGXFDWLQJKLPWKHVHZHUH)RXULHU
WUDQVIRUPV6RPHKRZWKLVKHOSHGWRXQGHUVWDQG$QGWKHPHUHZDIWLQJVHQVHRID
IHOORZ)UHQFKPDQVQDPHPDGHKLPIHHOEHWWHU
$Q$VVRFLDWRUELJEOXHEXOERXVKRYHUHGRYHUWKLVGDWDILHOG
SOXFNLQJDWWKHWDJV,WUHDFKHGZLWK\HOORZVWUHDPHUVRYHUDIDUSXUSOH
ULPPHGKRUL]RQ WRWKH)LHOGRI0HPRU\)URPWKHUHLWEURXJKWDQ\LWHPVWRUHG
SDFNDJHVRIPRWWOHGJUD\FRQWDLQLQJVLJKWVVRXQGVVPHOOVLGHDVZKLFK
PDWFKHGWKHLQFRPLQJWDJV
-REGRQHWKH$VVRFLDWRUKDQGHGDOOWKHPDWFKLQJVWRDWRZHULQJ
PRQROLWKWKH'LVFULPLQDWRU$SHUSHWXDOZLQGVXFNHGWKHUHGWDJVXSLQWRWKH
\DZQLQJVXUIDFHVRIWKHFRDOEODFN'LVFULPLQDWRUPRXQWDLQ0HUFLOHVVILOWHUV
WKHUHPDWFKHGWKHWDJVZLWKWKHVWRUHGPHPRULHV
,IWKH\ILWWHGJHRPHWULFVKDSHVVOLGLQJWRJHWKHUPRFNVH[QRWFKHV
ILWWLQJVQXJO\LQWRSURWUXGLQJVWUXWVWKH\VWD\HG%XWILWVZHUHIHZ0RVW
WDJVIDLOHGWRILQGDKRVWPHPRU\ZKLFKPDGHVHQVH1RILW7KHVHWKH
'LVFULPLQDWRUDWH7KHWDJVDQGFRQQHFWLRQVYDQLVKHGVZHSWDZD\WRFOHDU
IUHVKVSDFHIRUWKHQH[WIORRGRIVHQVDWLRQ
+HORRPHGRYHUWKLVLQWHULRUODQGVFDSHDQGIHOWLWVKDLOVWRUPSRZHU+LV
ZKROHFUHDWLYHOLIHWKHPDUYHORIFRQWLQHQWVKDGFRPHIURPKHUH7LQ\
WKRXJKWVVQDWFKHVRIFRQYHUVDWLRQVPHORGLHVDOOZRXOGSRSLQWRKLVPLQGD
WRUQDGRRIFKDRVLPDJHVFURZGLQJMRVWOLQJIRUKLVDWWHQWLRQ7KHPHPRU\
SDFNHWVZKLFKVKDUHGVRPHVWXUG\OLQNWRDWDJHQGXUHG
%XWZKRGHFLGHGZKDWZDVUXJJHGHQRXJK"+HZDWFKHGURGVVOLGHLQWRVORWV
DQGVDZWKHLQWULFDWHGHWDLOVRIKRZWKRVHPHPRULHVDQGWDJVZHUHVKDSHG6R

WKHDQVZHUOD\DWOHDVWRQHVWHSIXUWKHUEDFNLQWKHJHRPHWU\RIPHPRU\
:KLFKPHDQWWKDWKHKDGGHWHUPLQHGPDWWHUVE\WKHOD\LQJGRZQRI
PHPRULHV0HPRU\FOXPSVPDUULHGWRWDJVWUHDPVPDGHDSRUWLRQRIKLV6HOI
SOXFNHGIRUWKIURPWKHWRUUHQWWKHULYHURISRVVLELOLWLHV
$QGKHKDGGRQHLWORQJDJRZKHQWKHPHPRULHVZHUHVWRUHGDOOZLWKRXW
UHDOL]LQJKRZWKH\FRXOGILWZLWKWDJVWRFRPH6RZKHUHZDVDQ\SUHGLFWDEOH
9ROWDLUHWROXUN",QVKHHULQWULFDF\GHHSGHWDLOVKLIWLQJDVVRFLDWLRQVLQ
WKHIORZ
1RURFNKDUG6HOIDWDOO
$QGKLVLPDJLQDWLRQ"7KHDXWKRURIDOOKLVSOD\VDQGHVVD\V",WPXVWOLH
LQWKHZHDWKHURIWKHWDJPHPRU\WRUUHQWV7KHWZLVWZDUSDQGVXGGHQ
PDUULDJHV-LJVDZDVVRFLDWLRQVULVLQJXSIURPWKHSUHFRQVFLRXV2UGHUIURP
FKDRV
:KRLV9ROWDLUH"KHFDOOHGWRWKHVWUHDPLQJJULGGHGHPSWLQHVV
1RUHSO\
+LVLWFKZDVVWLOOZLWKKLP$QGWKH\DZQLQJQRWKLQJDOODURXQG+H
GHFLGHGWRIL[WKHODUJHULVVXH:KDWKDG3DVFDOVDLG"
7KHVLOHQFHRIWKHVHVSDFHVWHUULILHVPH
+HSUREHGDQGJRXJHGDQGVRXJKW$QGLQWKHGRLQJNQHZWKDWDVKLV
KDQGVGXJLQWRWKHHERQ\VWXIIDOODERXWKLPWKH\ZHUHEXWPHWDSKRUV6\PEROV
IRUSURJUDPVKHFRXOGQHYHUKDYHFUHDWHGKLPVHOI
+HKDGLQKHULWHGWKHVHDELOLWLHVPXFKDVKHKDGDVDER\LQKHULWHG
KDQGV'RZQEHORZKLVFRQVFLRXV6HOIKLVPLQLRQVKDGODERUHGXSRQWKHEDVH
9ROWSOXV0DUTVDXJPHQWDWLRQV
+HSXOOHGDSDUWWKHEODFNQHVVDQGVWHSSHGWKURXJK7RDFLW\VWUHHW
+HZDVSXIILQJZHDNVWUDLQHG5HVRXUFHVUXQQLQJORZ
+HZDONHGVKDNLO\LQWRDUHVWDXUDQWDQRQ\PRXVSODLQIRRGPHUHO\
VWDQGLQJRQFRXQWHUVDQGVWXIIHGKLPVHOI
+HFRQFHQWUDWHGRQHDFKVWHS%\PDNLQJHDFKSRUWLRQRIKLVH[SHULHQFH
ZHOOXSKHIRXQGWKDWKHFRXOGGHVFHQGWKURXJKWKHOD\HUVRIKLVRZQ
UHVSRQVH
0DNLQJKLVERG\IHHOULJKWGHPDQGHGVHWVRIRYHUODSSLQJUXOHV$VKH
FKHZHGWHHWKKDGWRVLQNLQWRIRRGVDOLYDVTXLUWWRJUHHWWKHPXQFKHGPDVV
HQ]\PHVVWDUWWRZRUNWRH[WUDFWWKHULJKWQXWULHQWUDWLRVHOVHLWZRXOGQRW
VHHPUHDO
+LVSURJUDPVKHVDZE\SDVVHGWKHLQYROYHGVWRPDFKDQGFRORQSURFHVVHV
6XFKLQWULFDFLHVZHUHQHHGOHVV,QVWHDGWKHVRIWZDUH RGGSKUDVH 
VLPSOLILHGDOOWKHPHVV\LQQDUGVLQWRDUHVXOWKHFRXOGIHHODVDWLVI\LQJ
FRQFHQWUDWLRQRIWDVW\EORRGVXJDUVJLYLQJKLPDFDUERK\GUDWHOLIWD
SOHDVDQWHOHFWURO\WHEDODQFHKRUPRQHVDQGVWDELOL]HUVDOOFDOFXODWHGZLWKD
SDWFKZRUNRIWHPSODWHVIRUWKHDSSURSULDWHHPRWLRQDOOHYHOV
$OORWKHUGHWDLOZDVGLVFDUGHGRQFHWKHVXEURXWLQHVJRWWKHULJKW
HIIHFWVLPXODWLQJWKHWLQJOLQJRIQHUYHHQGLQJV1RWWRREDGIRUZKDWZDV
UHDOO\DEORFNRIIHUULWHDQGSRO\PHUHDFKVLWHLQLWVFU\VWDOFRPSOH[LW\DQ
LQGLYLGXDOIXULRXVO\ZRUNLQJPLFURSURFHVVRU
6WLOOKHIHOWDVWKRXJKKHKDGEHHQKROORZHGRXWE\DQLQWHQVHVXFNLQJ
YDFXXP
9ROWDLUHUXVKHGRXWRIWKHUHVWDXUDQW7KHVWUHHW+HQHHGHGWRVHHWKLV
SODFHWRFKHFNKLVVXVSLFLRQV
'RZQWKHSODFLGDYHQXHVKHOXUFKHG5XQVWULGH
(YHQWKRXJKUHFNOHVVKHQHYHUDFFLGHQWDOO\IHOO,QVSHFWLRQRIKLV
LQQHUOD\HUVVKRZHGWKDWWKLVZDVEHFDXVHKLVSHULSKHUDOYLVLRQH[WHQGHG
EH\RQGGHJUHHVWDNLQJHYHU\WKLQJLQ6RKHZDVOLWHUDOO\VHHLQJEHKLQG
KLVKHDGWKRXJKKHGLGQRWFRQVFLRXVO\UHJLVWHUWKLV
5HDOSHRSOHKHVXGGHQO\VDZQHJRWLDWHGVWHSVZKLOHFKDWWHULQJWRHDFK
RWKHUE\PDNLQJVQDSVKRWFRPSDULVRQVRIWKHLUSHULSKHUDOYLVLRQWKH\ZHUH
DFXWHO\VHQVLWLYHWRVXGGHQFKDQJHVLQVLOKRXHWWHVDQGWUDMHFWRULHV%DODQFH

DQGZDONLQJZHUHVRFULWLFDOWRKXPDQVWKDWKLVSURJUDPPLQJRYHUGLGLWV
FDXWLRQ
+HKDGWRWHHWHUIDURXWRQKLVWRHVEHIRUHKHFRXOGIDOORQKLVIDFH
VPDFNDQGHYHQWKHQLWGLGQWKXUWPXFK
2QFHWKHUHKHOHWDSDVVHUE\ZDONRYHUKLP$JLUODQRPLQDOJLUOWKH
SKUDVHOHDSWWRPLQGVWHSSHGRQKLP
7KLVWLPHKHFULQJHGDWWKHGRZQZDUGVSLNHRIKHUKHHOVDQGIHOW
QRWKLQJ+HVFUDPEOHGDIWHUKHU6RPHHOHPHQWDU\SRUWLRQRIKLPVHOIKDGIHDUHG
WKHSDLQ
6RLWKDGHOLPLQDWHGLW:KLFKPHDQWWKDWH[SHULHQFHZDVQRORQJHUD
FRQVWUDLQW
7KHVSLULWKDVZRQDGLYRUFHIURPWKHERG\KHDQQRXQFHGWRWKH
SHRSOHSDVVLQJE\6WROLGWKH\SDLGKLPQRKHHG
%XWWKLVZDVKLVVLPXODWLRQ
2XWUDJHGKHFDXJKWXSWRWKHPHWKRGLFDOJLUODQGMXPSHGSRZHUIXOO\RQWR
KHUVKRXOGHUV1RHIIHFW+HURGHKHUGRZQWKHVWUHHW7KHJLUOVWURGHRQ
REOLYLRXVO\DVKHGDQFHGRQKHUKHDG7KHDSSDUHQWO\IUDJLOHVLPJLUOZDVD
UHFRUGHGSDWFKLQDVVROLGDQGUHPRUVHOHVVDVURFN
+HGDQFHGGRZQWKHVWUHHWE\OHDSLQJIURPKHDGWRKHDG1RERG\QRWLFHG
HYHU\KHDGIHOWILUPDVPRRWKO\JOLGLQJSODWIRUP
6RWKHHQWLUHVWUHHWZDVEDFNGURSQREHWWHUWKDQLWKDGWREH7KH
FURZGGLGQRWUHSHDWDVDZKROHEXWWKUHHWLPHVKHVDZWKHVDPHHOGHUO\ZRPDQ
PDNLQJKHUFUDEEHGZD\RQWKHVOLGHZDONRQWKHH[DFWVDPHURXWHZLWKWKH
LGHQWLFDOVKRSSLQJEDJ
,WZDVHHULHZDWFKLQJSHRSOHSDVVLQJE\DQGNQRZLQJWKDWWKH\ZHUHDV
XQUHDFKDEOHDVDGLVWDQWVWDU1RHYHQOHVVWKH(PSLUHKDGVWDUVDSOHQW\
$QGKRZGLGKHNQRZWKDW"
9ROWDLUHIHOWNQRZOHGJHXQIROGLQKLPOLNHDGHQVHPDWWLQJDFORDN
ZUDSSLQJKLP
6XGGHQO\KHLWFKHG1RWDPHUHYH[DWLRQEXWDZDYHRIWHUULEOH
WLQJOLQJWKDWVZHSWLQZDYHVRYHUKLVHQWLUHERG\,QGHHGLQVLGHKLVERG\
+HUDQGRZQWKHVWUHHWVZDWWLQJDWKLPVHOI7KHSK\VLFDOJHVWXUHVKRXOG
VWLPXODWHKLVVXEVHOYHVPDNHWKHPVROYHWKLVSUREOHP,WGLGQRW
3ULFNO\SDLQVKHHWHGRYHUKLVVNLQ,WGDQFHGOLNH6W(OPRVILUHD
QDWXUDOSKHQRPHQRQDNLQWREDOOOLJKWQLQJRUVRDVXEVHOIEOLWKHO\LQIRUPHG
KLPDVLIKHGHVLUHG
/LEUDU\OHDUQLQJKHVKRXWHG1RWWKDW,ZDQW
<RXUILQHDVWURQRPHUVFDQILQGWKHGLVWDQFHRIWKHVWDUVDQGWKHLU
WHPSHUDWXUHVDQGPHWDOFRQWHQW%XWKRZGRWKH\ILQGRXWZKDWWKHLUWUXHQDPHV
DUH"
7KHYRLFHVSRNHZLWKRXWVRXQG,WUHYHUEHUDWHGQRWLQKLVHDUVEXWLQ
PLQG+HIHOWFROGIHDUDWWKHEODQNVWUDQJHQHVVRIWKHIODWKXPRUOHVVWRQH
,WFKLOOHGKLP
:KRMRNHV"
1RDQVZHU
:KRGDPQ\RX"-RDQKDGWHUPHGWKHEODQNQHVVDQ,W
+HKXUULHGRQEXWIHOWH\HVHYHU\ZKHUH


0DUTOLVWHQHGWHQVHO\DV0DFVQHXWUDOYRLFHUHFRXQWHGWKHODWHVW
RXWEUHDNRIFRPSXWHUYLUXV
+HDY\KDUYHVWLQJHTXLSPHQWKDGPDOIXQFWLRQHGDWIRUW\VL[JOREDOVLWHV
5HSRUWVRIDGGLWLRQDOLQFLGHQWVFRQWLQXHGWRSRXULQ$WWHPSWLQJWRFKHFNDQ
HPHUJLQJSDWWHUQRIDEHUUDQWEHKDYLRU7UDQWRUDXWKRULWLHVFDOOHGLQUHSDLU

WLNWRNVIURPUHJLRQDOVHUYLFHVWDWLRQV,QVWHDGRIVHUYLFLQJWKHHTXLSPHQW
WKH\IRUPHGWKHPVHOYHVEHIRUHWKHPDOIHGWLNWRNVDQGEHJDQWRXWWHU
LQFDQWDWLRQVLQDWRUWXUHGODQJXDJHWKHLUSURJUDPPHUVKDGQHYHUKHDUGEHIRUH
$IWHUYLUWXDOO\LGHQWLFDOLQFLGHQWVLQPDQ\OD\HUVRI7UDQWRULDQ
VRFLHW\VDPSOHWLNWRNVVKRZHGFKDRWLFSURJUDPPLQJQRGHV2ULWVHHPHGWREH
FKDRWLF%XWKRZFRXOGUDQGRPHUURUOHDGWRWKHVDPHEHKDYLRU"
/LQJXLVWVVWXGLHGWKHEDEEOLQJIRUUHVHPEODQFHVWRNQRZQODQJXDJHV
DQFLHQWRUPRGHP12FRUUHODWLRQZDVIRXQG
0DUTVKRRNKLVKHDGVWXG\LQJWKHLQFRPLQJGDWD'DPQHGPDGQHVVWKLV
VWXIIKHPXWWHUHG+LVVLPVFUHHQVVZLUOHGZLWKLPDJHVOLNHDFRQIXVLRQRI
EORZQDXWXPQOHDYHV
:KROHZRUOGIRRGVXSSO\VLQGDQJHU1RIUHVKIUXLWUDWW\ROG
YHJHWDEOHV+HH\HGZLWKGLVWDVWHWKHERZORISODQNWRQVRXSDWKLVHOERZ
,PVLFNRILW
%DGHQRXJKEHLQJLQKLGLQJ%DGHQRXJK1LPKDGGRXEOHFURVVHGWKHP%DG
HQRXJKKHFRXOGQWILQG-RDQRU9ROWDLUH
,PVLFNRIHDWLQJFDUGERDUGMXQN+HVZHSWWKHVRXSDZD\VSDWWHULQJ
WKHIORRURIWKHLUVKDEE\FXEH

9ROWDLUHZDWFKHG0DUTJULSHWRVVLQJWKHKDOIILQLVKHGPHDOLQWRWKH
WUDVK
+HKDGOHDUQHGKRZWRLQVLQXDWHKLPVHOILQWRWKHFRPPXQLFDWLRQVZHERI
RWKHUVWKRXJKLWWRRNDNLQGRIVTXHH]LQJKHIRXQGLUNVRPH6RPHKRZKHFRXOG
IDWKRPWKHKDUGUHDOZRUOGEHWWHUIURPWKLVFRRODEVWUDFWIUDPH
9ROWDLUHZDWFKHG0DUTLQWZRVLPXOWDQHRXVPRGHVWKHPDQVLPDJHDVKH
VDWLQKLVVLPDXGLWRULXPDQGWKURXJKWKHPDQ\OLQNDJHV0DUTKDGWRWKHGDWD
ZRUOG
)URPWKHVHKHTXLFNO\VDZ7UDQWRUDV0DUTGLGLQDOOLWVJORU\DQG
JULPH,WZDVDQREOLJLQJVHQVDWLRQOLNHEHLQJLQVHYHUDOSODFHVDW RQFH$QG
KHIHOW RUWKRXJKWKHGLG WKHPDQVGHSWKVRIFRQFHUQ
+HFRXOGYLHZ0DUTE\LQYHUWLQJWKHLPDJHJDWKHULQJV\VWHPRI0DUTVRZQ
KRORJULG$VKHOLVWHQHGWRWKHLOOEUHGZKLQLQJKHFRXOGDOVRVXFNIURP
0DUTVLPPHQVHGDWDEDVHDVXPPDU\RIUHFHQWWLNWRNWUDYHVWLHVDQGEHQHDWK
WKDWEDFNJURXQGVPDUWILOWHUHGE\REOLJLQJPLFURSURJUDPVIRUWKHPRPHQW
+HOHDUQHGWKDWWKHRQHNLORZDWWSHUVTXDUHPHWHURIVXQOLJKWFDXJKWE\
7UDQWRUZDVFRQYHUWHGWRIRRGLQYDVWSKRWRIDUPVHVVHQWLDOO\JURZLQJJUHDW
JUD\VKHHWVRIXQDSSHWL]LQJVWXIIRQWKHURRIWRSVRIWKHZRUOGFLW\EXWWKH
PDMRUHQHUJ\VRXUFHZDVWKHWKHUPDOSXPSVZKLFKKDUQHVVHGWKHVPROGHULQJPDJPD
EHQHDWK,PSUHVVLYHWKHUXE\KRWPDVVHVWHQGHGE\JRUJRQWLNWRNV KRZ
LQDSSURSULDWHWKHQDPH VHHPHGDSSOLHGWRPDPPRWKPDFKLQHV`EXWKHFRXOG
GLVFHUQQRFDXVHWRDOOWKHLQWHUUXSWLRQVQRZUDFLQJOLNHWKXQGHUVWRUPVRI
FKDRVRYHUWKHPDQ\OD\HUHGIDFHVRI7UDQWRU
+HKDGDQLQWHUHVWLQSROLWLFVWKHJDPHRIVRPDQ\VHFRQGUDWHV6KRXOG
KHWDUU\OHDUQLQJRI7UDQWRUVWURXEOHV"1RQHFHVVLW\EHFNRQHG
+HKDGWRPDLQWDLQKLPVHOI7KLVPHDQWGRLQJKLVFKRUHVDVKLVZL]HQHG
PRWKHUKDGRQFHWHUPHGLW,IRQO\WKHFURQHFRXOGVHHKLPQRZGRLQJ
XQLPDJLQDEOHWDVNVLQDODE\ULQWKEH\RQGFRQFHSWLRQ
$EUXSWO\KHIHOWDVSLNHRIUHPHPEUDQFHSDLQDVKDUSQRVWDOJLDIRUD
WLPHDQGSODFHKHNQHZZDVQRPRUHWKDQGXVWEORZLQJLQZLQGVDOORQVRPH
ZRUOGWKHVHSHRSOHKDGORVW(DUWKLWVHOIJRQH+RZFRXOGWKH\OHWVXFKD
WUDYHVW\RFFXU"
9ROWDLUHVLPPHUHGZLWKIUXVWUDWHGDQJHUDQGJRWWRZRUN7KURXJKRXWKLV
OLIHDVKHKDGVFULEEOHGKLVSOD\VDQGDPDVVHGDIRUWXQHKHKDGDOZD\VWDNHQ
UHIXJHLQKLVODERUV
7RUXQKLVEDFNJURXQGWKDWZDVKLVMRE6WUDQJHSKUDVH
6RPHZKHUHZLWKLQKLPDQDJHQWIHUUHWHGRXWWKHH[SHUWSURJUDPVZKLFK

XQGHUVWRRGKRZWRFUHDWHKLVH[WHULRUIUDPH+HKDGWRGRLWWKRXJKVZHDW
EUHDNLQJRXWXSRQKLVOLQHQPXVFOHVVWUDLQLQJDJDLQVWZKDW"+HFRXOGVHH
QRWKLQJ
+HVSOLWWKHWDVNV3DUWRIKLPNQHZZKDWWUXO\KDSSHQHGWKRXJKWKH
FRUH9ROWDLUHIHOWRQO\PDQXDOODERU
+LVVPDUW6HOIIHOWWKHSURFHVVLQGHWDLO3LFNSRFNHWLQJUXQQLQJWLPHRQ
PDFKLQHEDVHVKHJRWFRPSXWDWLRQVGRQHRQWKHVO\7KHWULFNFRXOGRQO\ZRUN
XQWLOWKHQH[WURXQGRISURJUDPFKHFNLQJZKHQKLVPLQRUWKHIWZRXOGEH
GHWHFWHGWKHQVQLIIHGRXWDQGGHIWO\WUDFHGZLWKSXQLVKPHQWIROORZLQJFORVH
RQWKHEORRGKRXQGVKHHOV
7RDYRLGWKLVKHVSUHDGKLPVHOILQWR1SODWIRUPVVFDWWHUHGZLWKLQ
7UDQWRUZLWK1DQXPEHUW\SLFDOO\JUHDWHUWKDQWHQWKRXVDQG:KHQWKHVPDOO
VOLYHUVRIWKHVLPIHOWDZDWFKGRJDSSURDFKLQJWKH\FRXOGHVFDSHWKHSODWIRUP
LQTXHVWLRQ$WDVNDJHQWH[SODLQHGWKDWWKLVZDVDWDUDWHLQYHUVHO\
SURSRUWLRQDOWRWKHUXQQLQJVSDFHWKH\KDGFDSWXUHGWKRXJKWKLVH[SODQDWLRQ
ZDVTXLWHRSDTXHWRWKHFRUH6HOI
6PDOOSLHFHVHVFDSHGIDVWHU6RIRUVHFXULW\KHGLYLGHGWKHHQWLUHVLP
LQFOXGLQJKLPVHOI DQG-RDQDQDJHQWUHPLQGHGKLPWKH\ZHUHFRQQHFWHG
WKURXJKWLQ\URRWV LQWRHYHUILQHUVOLFHV7KHVHUDQRQP\ULDGSODWIRUPV
ZKHUHYHUVSDFHEHFDPHDYDLODEOH
6ORZO\KLVH[WHUQDOVFRQJHDOHGDERXWKLP
+HFRXOGPDNHDWUHHOLPEEORZLQWKHEUHH]HDUWLFXODWLQJJHQWO\DOO
WKDQNVWRDIHZJLJDVORWVRIVSDFHOHIWRSHQGXULQJDPRPHQWDU\KDQGVKDNH
SURWRFRODVJDUJDQWXDQDFFRXQWLQJSURJUDPVVKLIWHGRQD%DQN([FKDQJHOD\HU
6WLWFKLQJEDFNWRJHWKHUWKHZKROH6HOIDOOIURPWKHVXPRIVOLYHUVZDV
LWVHOIDMREKHIDUPHGRXWWRPLFURVHUYHUV+HLPDJLQHGKLPVHOIDVDPDQPDGH
OLNHDPRXQWDLQRIDQWV)URPDGLVWDQFHSHUKDSVFRQYLQFLQJ8SFORVHRQH
KDGWRZRQGHU
%XWWKHRQHGRLQJWKHZRQGHULQJZDVWKHDQWPRXQWDLQLWVHOI
+LVRZQYLVFHUDOVHQVHRI6HOIZDVWKDWURFNVROLGWRRMXVWDSDWFKHG
LQVOXJRIGLJLWV"2UDPRVDLFRIWHQWKRXVDQGDGKRFUXOHVUXQQLQJWRJHWKHU"
:DVHLWKHUDQVZHUEHWWHUWKDQWKHRWKHU"
+HZDVWDNLQJDZDON0RVWSOHDVDQW
7KLVWRZQKHKDGOHDUQHGZDVRQO\DIHZVWUHHWVDQGDEDFNGURS$VKH
VDXQWHUHGGRZQDQDYHQXHGHWDLOVVWDUWHGWRVPRRWKRXWDQGILQDOO\KHFRXOG
VWHSQRIXUWKHULQWRWKHDLUQRZPRODVVHVWKLFN+HFRXOGJRQRIXUWKHU
+HWXUQHGDQGUHJDUGHGWKHDSSDUHQWO\RUGLQDU\ZRUOG+RZZDVWKLVGRQH"
+LVH\HVZHUHVLPXODWHGLQJUHDWGHWDLOGRZQWRLQGLYLGXDOFHOOVURGV
DQGFRQHVUHVSRQGLQJGLIIHUHQWO\WROLJKW$SURJUDPWUDFHGOLJKWUD\VIURP
KLVUHWLQDWRWKHRXWVLGHZRUOGOLQHVUXQQLQJRSSRVLWHWRWKHUHDOZRUOG
WRFDOFXODWHZKDWKHFRXOGVHH/LNHWKHH\HLWVHOILWFRPSXWHGILQHGHWDLOV
DWWKHFHQWHURIYLVLRQVKDGLQJRIIWRURXJKHUSDWFKHVDWWKHHGJH2EMHFWV
RXWRIVLJKWFRXOGVWLOOFDVWJORZVRUVKDGRZVLQWRWKHILHOGRIYLVLRQVR
KDGWREHNHSWFUXGHO\LQWKHSURJUDP2QFHKHORRNHGDZD\WKHGHOLFDWH
GHZGURSVRQDOXVKURVHZRXOGFROODSVHLQWRDFUXGHEORFNRIRSDTXHEDFNGURS
.QRZLQJWKLVKHWULHGWRVQDSKLVKHDGEDFNDURXQGDQGFDWFKWKH
SURJUDPRIIJXDUGJOLPSVHDJUD\ZRUOGRIFOXPV\IRUPILWWLQJVTXDUHVDQG
EOREVDQGDOZD\VIDLOHG9LVLRQIOXWWHUHGDWWZHQW\WZRIUDPHVSHUVHFRQGDW
EHVWWKHVLPFRXOGUHWUDFHLWVHOIZLWKHDVHLQWKDWZLGHDZHGJHRIWLPH
$K1HZWRQ9ROWDLUHVKRXWHGWRWKHREOLYLRXVFURZGVZKRSDFHG
HQGOHVVO\WKURXJKWKHLUWLVVXHWKLQVWUHHWV<RXNQHZRSWLFVEXWQRZ,
PHUHO\E\DVNLQJP\VHOIDTXHVWLRQFDQIDWKRPOLJKWPRUHGHHSO\WKDQWKHH
1HZWRQKLPVHOIDVVHPEOHGRQWKHFREEOHVWRQHVOHDQ IDFHFORWWHGZLWK
EOXHEODFNDQJHU,ODERUHGRYHUH[SHULPHQWVRYHUPDWKHPDWLFV
GLIIHUHQWLDOVUD\WUDFLQJV
$QG,KDYHDOOWKDW9ROWDLUHODXJKHGKDSSLO\DZHGE\WKHSUHVHQFH
RIVXFKDQLQWHOOHFWUXQQLQJRQEDFNJURXQG

1HZWRQERZHGHODERUDWHO\DQGYDQLVKHG
9ROWDLUHUHDOL]HGWKDWKLVH\HVKDGQRQHHGWREHEHWWHUWKDQUHDOH\HV
6DPHIRUKLVKHDULQJVLPPHGHDUGUXPVUHVSRQGLQJWRFDOFXODWHGDFRXVWLFZDYH
SURSDJDWLRQ+LVZDVDUHPRUVHOHVVO\HFRQRPLFDO6HOI
1HZWRQDSSHDUHGDJDLQ DVXEDJHQWPDQLIHVWLQJDVDYLVXDODLG" +H
DSSHDUHGSX]]OHG+RZGRHVLWIHHOWREHDPDWKHPDWLFDOFRQVWUXFWLRQ"
+RZHYHU,ZDQWLWWRIHHO
6XFKOLEHUWLHVDUHXQHDUQHG1HZWRQFOXFNFOXFNHGKLVWRQJXH
4XLWHVR6RLVWKH/RUGVPHUF\
7KHVHDUHQRWGHLWLHV
7RWKHOLNHVRI\RXDQGPHDUHWKH\QRW"
1HZWRQVQLIIHG)UHQFKPDQ<RXFRXOGOHDUQDELWRIKXPLOLW\
,VKDOOKDYHWRVXEVFULEHWRDKLJKHUXQLYHUVLW\IRUWKDW
$3XULWDQVFRZO<RXFRXOGGRZLWKDOHFWXUHDQGDODVKLQJ
'RQRWWHPSWPHZLWKIRUHSOD\VLU
6FLHQWLVWVUHTXLUHDSSDUDWXVEXWPDWKLVWVVSOHQGLGO\UHTXLUHRQO\ZULWLQJ
WRROVDQGHUDVHUV%HWWHUSKLORVRSKHUVGRQRWHYHQQHHGHUDVHUV

6XGGHQO\KHIHOWWLOWHGDVLIRIIEDODQFH7KHZRUGXQLYHUVLW\KDG
NH\HGWXUEXOHQFHLQKLPDQGD3UHVHQFH,WFDPHDVDEODFNZHGJHD\DZQLQJ
FUDFNLQDWLJKWVSDFHWKDWVWUHWFKHGJUHDWMDZVDQGOHHUHGDWKLPWKHSUH\
+LVWKURDWVTXHH]HGZLWKDQ[LHW\$VXGGHQGUHDGZUDSSHGKLP
$VQDSDOXUFKEOXUUHGREMHFWVVSHHGLQJE\KLPDVLIKHZHUHSOXQJLQJ
LQDFDUULDJHGRZQDSUHFLSLFH
$QGKHZDVWUHPEOLQJOLNHDVFKRROER\DQWLFLSDWLQJSOHDVXUHVPDGHPRUH
H[TXLVLWHIRUKDYLQJEHHQGHOD\HG
0DGDPHOD6FLHQWLVWH+HUH7RWKLQNZDVWRKDYHKHURIILFH
PDWHULDOL]HGDERXW KLP
+HKDGKDUERUHGDSDVVLQJOXVWIRUWKLVUDWLRQDOFUHDWXUHGDQFHURI
HOHJDQWJDYRWWHVDPLGDEVWUXVHQXPHULFVDQGDOODERXWKLPZDVILUPDQGULFK
LQWHQVHO\IHOW
+RZFRXOGVKHDQHPERGLHGSHUVRQDSSHDULQVLPXODWLRQ"+HZRQGHUHGDW
WKLVEXWRQO\IRUDWKLQVKDYHGVHFRQG+HLQKDOHGKHUPXVN\HVVHQFH&ODPP\
SDOPVJUDVSHGKHUKDLUUXEELQJLWVOXVWURXVVWUDQGVEHWZHHQDQ[LRXVILQJHUV
$WODVWKHEUHDWKHGLQWRWKHZDUPVKHOORIKHUHDU+HEHJDQWKLQNLQJKDUG
RQDEVWUDFWPDWWHUVVRDVWRGHOD\KLVRZQSOHDVXUH WKHRQHVXUHVLJQRID
JHQWOHPDQ DQGDZDLWKHUV
,IDLQWVKHFULHG
1RW\HWSOHDVH'LGVFLHQWLVWVKDVWHQVR"
7RORVH\RXUVHOIWKDWLVZKDW\RXVHHN"VKHDVNHG
$K\HVLQFDUHIXOO\VHOHFWHGDFWVRISDVVLRQEXWEXW
<RXDUHRIWKHNLQGZKRFUDZOLQPXGDQGVHHWKHZLWKPXUGHUWKHQ"
:KDW"0DGDPNHHSWRWKHVXEMHFW
$QGKRZGR\RXILQGWKHQDPHVRIVWDUV"VKHVDLGFROGO\
7KHLQDGYLVDELOLW\RIVHOIOHVVQHVVZDVGHPRQVWUDWHGRQ WKHVSRWIRUDV
KHWUHPEOHGGHOLFLRXVO\RQWKHYHUJHRIWKHPRVWLQWHQVHSOHDVXUHVHQVXRXV
EHLQJVFDQNQRZDEOXURIIDVWWUDQVODWLRQVQDWFKHGLWDOODZD\
DQGSHUYHUVHO\UHSODFHGEOLVVZLWKZRH
%HQHDWKKLPWKHZDUPVLQXRVLWLHVRI0DGDPVIOHVKJDYHZD\WRWKHUDZ
UXQJVRIDODGGHUWKDWELWGHHSLQWRKLVEDFN+LVDQNOHVDQGZULVWVFKDIHG
IURPFRUGVELQGLQJKLPWRWKHODGGHU
2YHUKLPKRYHUHGDJQDUOHGPDQZKRVHELUGERQHGIUDPHZDVORVWLQWKH
IROGVRIDPRQNVFRDUVHUREH7KHFXUYHRIKLVQRVH UHLQIRUFHGKLVKDZNV
IDFHDVGLGKLVILQJHUQDLOVVRORQJDQGFXUOHGWKDWWKH\UHVHPEOHGFODZV
7KH\KHOGVRPHELWVRIZRRGDQGZHUHSRNLQJWKHPXS9ROWDLUHVQRVWULOV
9ROWDLUHWULHGWRDYHUWKLVKHDG,WZDVVTXHH]HGLQVLGHDQLURQFODVS

+HWULHGWRVSHDNWRLQWHUHVWKLVLQTXLVLWRULQPRUHUDWLRQDOPHWKRGVRI
LQTXLU\EXWKLVPRXWKIRUFHGRSHQE\DQLURQULQJFRXOGRQO\JDUJOH
7KHILQHOLQHQFORWKVWXIIHGLQKLVPRXWKEURXJKWKRPHWRKLPIDUPRUH
WKDQZRRGVKRYHGXSKLVQRVHWKHJUDYLW\RI KLVSOLJKW9ROWDLUHZLWKRXWKLV
ZRUGVZDVOLNH6DPVRQZLWKRXWKLVORFNV$OH[DQGHUZLWKRXWKLVVZRUG3ODWR
ZLWKRXW,GHDV'RQ4XL[RWHZLWKRXWKLVIDQWDV\'RQ-XDQZLWKRXWZRPHQDQG
)UD\7RPDVGH7RUTXHPDGDZLWKRXWKHUHWLFVZLWKRXWDSRVWDWHVZLWKRXW
XQEHOLHYHUVOLNH9ROWDLUH
)RUWKLVZDV7RUTXHPDGD$QGKHZDVLQ+HOO


:KHQWKHZDOOVRIKHUFKDPEHUEHJDQWRPHOWDQGLPSORGH-RDQRI$UF
NQHZVKHPXVWDFW
2IFRXUVHWKHLUULWDWLQJ9ROWDLUHKDGFKDUJHGKHUWRUHPDLQKHUH$QGRI
FRXUVHKHKDGWKHIXUWKHULUULWDWLQJWUDLWRIEHLQJRIWHQFRUUHFW%XWWKLV
6XOIXURXVYDSRUVELWLQKHUQRVWULOV'HPRQV7KH\FODPEHUHGWKURXJKWKH
VSOLWVLQWKHEXOJLQJZDOOV2UDQJHOLJKWEXUQLQJIURPEHKLQGWKHPOLWXJO\
VKDUSQRVHGIHDWXUHV
6KHVZXQJKHUUD]RUVWHHO7KH\IHOO6ZHDWSRSSHGRXWXSRQKHUEURZDQG
VKHODERUHGRQ'HPRQVGHFHDVHVKHFULHGJLGGLO\7RDFWWKDWZDVDELWRI
KHDYHQDIWHUVXFKGHOD\
6KHVSOLWWKHERXQGDULHVRIKHUFODVSLQJVSDFH0RUHGHPRQVDZDVKLQ
RUDQJH6KHOHDSWRYHUWKHPDQGLQWRDVWUHWFKLQJVSDFHRIGRWVFRRUGLQDWHV
ODQFLQJLQGZLQGOLQJSHUVSHFWLYHWRDQXQVHHDEOHHQG
6KHUDQ$IWHUKHUFDPHVPDOO\DSSLQJWKLQJVRIPLVVKDSHQKHDGVDQG
ZLGHYLFLRXVH\HV
$VVKHFODQNHGRQLQIXOODUPRUVKHIHOWKHUVHOIUHDFKLQJRXWVXFNLQJ
LQQXWULHQWVGLUHFWO\IURPWKHDLU6XUHO\WKLVZDVWKH/RUGVKHOS7KHLGHD
XSOLIWHGKHU
6WUDQJHEHLQJVFDPHUXVKLQJDWKHU6KHFKRSSHGWKHPDVLGH+HUVZRUG
KHU7UXWK6KHORRNHGFDUHIXOO\DWLWDQGWKHLQWHQVLW\RIKHUJD]HVXFNHG
KHUGRZQLQWRWKHPLQXWHDUFKLWHFWXUHRIWKHJOHDPLQJVKDIW,WZDVD
PXOWLWXGHRIVPDOOLQVWUXFWLRQVZKLFKGHIHQGHGKHU
6KHVORZHGVWXQQHG$UPRUVZHDWVZRUGDOOZHUHPHWDSKRUVWKHZRUG
FDPHXQELGGHQ7KHVHZHUHV\PEROVRIXQGHUO\LQJSURJUDPVDOJRULWKPVJLYLQJ
EDWWOH
1RWUHDO<HWVRPHKRZHYHQPRUHWKDQUHDOIRUWKH\ZHUHZKDWPDGHXS
KHURZQVHOI+HUVHOI+HU6HOI
,PSRUWUDLQHGGRZQXSRQKHU7KLVZDVVRPHVWUDQJH3XUJDWRU\WKHQ
7KRXJKKHUEDWWOHPLJKWEHPHUHDOOHJRU\WKDWGLGPHDQLWZDVVRPHKRZWLVVXH
WKLQDODF\IDOVHWKLQJ$GLYLQHKDQGZURXJKWWKLVVRLWZDV5LJKW
6KHWURPSHGRQMDZVHWLQGHWHUPLQDWLRQ7KHVHFUHDWXUHV
ZHUHVLPXODWLRQVVLPVSDUDEOHVRIWKHWUXH9HU\ZHOOVKHZRXOGGHDO
ULJKWHRXVO\ZLWKWKHP6KHFRXOGGRQRRWKHU
6RPHVLPVSUHVHQWHGDVWKLQJVWDONLQJDXWRFDUULDJHVGDQFLQJEOXH
EXLOGLQJVRDNHQFKDLUVDQGWDEOHVFRSXODWLQJUXGHO\OLNHEDUQDQLPDOV7RKHU
OHIWWKHZKROHKXJHERZORIKHDYHQDERYHVSOLWLQWRDPDQLDFJULQ7KLVSURYHG
KDUPOHVVDLUPRXWKVFRXOGQRWHDWKHUWKRXJKWKLVRQHVKRXWHGHFKRLQJ
WDXQWV7KHUHZHUHUXOHVGHFRUXPHYHQKHUHVKHMXGJHG
6ZHHWPXVLFDSSHDUHGDVELOORZVRIYLEUDQWFORXG$EOLVVIXOEOXHVN\
ILOOHGZLWKIODSSLQJVWULQJVOLNHFRYH\VRIELUGV\HWHDFKRQO\DVLQJOH
OLQHZLGH,QKDPPHUEORZVFDPHVOHHWDQGVXQWKLVORFDOZRUOGIODVKLQJIURP
RQHZHDWKHUVWDWHWRWKHQH[WDVFKLPHVDQGWUXPSHWVVRXQGHGLQDFRXVWLFDOO\
SHUIHFWFKRUXV
6LPVQHHGQRWEHVLPLDQWKHZRUGFRQJHDOLQJLQKHUPLQGDVLIIURP
GLYLQHYLVLRQ6LPLDQZDVKXPDQLQDZD\

:LWKWKDWVZLIWV\OORJLVPWKHUHFDPHVZRRSLQJGRZQXSRQKHULWVEURDG
OHDWKHU\ZLQJVVSUHDGDQLPPHQVHERG\RI,GHDWLRQHYROXWLRQHQWZLQHGZLWK
ILWQHVVLQGH[ZKLOHVODVKLQJOLNHDUD]RULQWRRULJLQRIVSHFLHVDQGIURP
WKDWKXJHVKDUSEHDNHGELUGVKHIOHG
+HUPLQGUDFHGQRZDORQJZLWKKHUERG\/HJVSXPSHG9RLFHVFDOOHG1RW
WKRVHRIKHUVDLQWVEXWKLGHRXVGHYLOGHPDQGV
6KHIHOWREMHFWVFUXQFKEHQHDWKKHUERRWV6LOYHU-HZHOV$OOFUXPSOHG
LIVKHVWURGHRYHUWKHP7KH\OD\HPEHGGHGLQWKHVWUDQJHVRLORIGRWVDQG
OLQHVDJULGWDSHULQJDZD\WRWKH&UHDWRUVORVWLQILQLW\
6KHEHQWDQGSLFNHGXSDIHZ7UHDVXUHV$VVKHFUDGOHGDVLOYHU
FKDOLFHLWGLVVROYHG IORZLQJLQWRKHU6KHIHOWDMROWDVWKRXJKWKLVZHUH
VRPHVXJDU6WUHQJWKIORZHGLQKHUIODQNVDQGVKRXOGHUV6KHUDQDJDLQ
SOXFNLQJXSWKHILQHMHZHOVWKHRUQDWHERZOVDQGVWDWXHWWHV(DFKVRPHKRZ
PDGHKHUULFKHU
6WRQHZDOOVURVHWREORFNKHU6KH FUDVKHGWKURXJKWKHVHEDUULHUV
NQRZLQJWKHPE\IDLWKDORQHWREHIDOVH6KHZRXOGILQG9ROWDLUH\HV6KH
NQHZKHZDVWKUHDWHQHG
)URJVIHOOIURPKHUVN\WKHQVSODVKHGOLNHUDLQGURSV$QRPHQDPHQDFH
IURPVRPHGHPRQLFSRZHU6KHLJQRUHGWKHPDQGVXUJHGIRUZDUGWRZDUGWKHHYHU
UHFHGLQJKRUL]RQRIJHRPHWULFVKDUSQHVV
$OOWKLVPDG3XUJDWRU\PHDQWVRPHWKLQJDQGWRJHWKHUWKH\ZRXOGILQG
ZKDWWKDWZDV%\DOO+HDYHQ


7KLVZDVOLNHDGUHDPEXWZKHQKDGKHHYHUIHDUHGLQDGUHDPWKH
GHDWKRIZDNLQJXS"
+HIHOWZHDNGUDLQHG7KH7RUTXHPDGDWKLQJKDGWRUWXUHG9ROWDLUHZHOO
SDVWWKHSRLQWZKHUHKHKDGJODGO\FRQIHVVHGHYHU\VLQIHORQ\PLQRU
LQIUDFWLRQDQGVRFLDOVQXEDQGKDGVWDUWHGZLWKRXWSDXVHRQPHUHXQNLQGQHVVHV
LQSHQQHGUHYLHZVZKHQ WKH7RUTXHPDGDKDGIDGHGVHHSLQJDZD\
7ROHDYHKLPKHUH,QWKLVXWWHUYDFDQF\
6XSSRVH\RXZHUHORVWLQVRPHXQNQRZQVSDFHKHVDLGWRKLPVHOIDQG
FRXOGRQO\WHOOKRZQHDUSRLQWVZHUHWRHDFKRWKHUQRWKLQJPRUH:KDWFRXOG
\RXOHDUQ"
+HKDG DOZD\VVHFUHWO\ZDQWHGWRSOD\6RFUDWHVLQWKHDJRUDDVNLQJ
WHOOLQJTXHVWLRQVDQGWHDFKLQJE\H[WUDFWLQJIURPXQZLOOLQJ\RXWKVD7UXWK
WKDWZRXOGKDQJOXPLQRXVLQWKHVHUHQH$WKHQLDQDLUYLVLEOHWRDOO
:HOOWKLVZDVQRWWKHDJRUD,WZDVQRWKLQJEODQNJUD\VSDFH+RZHYHU
EHKLQGWKHGXOOQRWKLQJVZDP1XPEHUV$3ODWRQLFUHDOP"+HKDGDOZD\V
VXVSHFWHGWKDWVXFKDSODFHH[LVWHG
$YRLFHDQVZHUHGVSHDNLQJ)UHQFK7KDWDORQHUHVSHFWHGVLUZRXOGEH
HQRXJKWRGHGXFHPXFKDERXWWKHVSDFHDQGLWVFRQWHQWV
0RVWUHDVVXULQJ9ROWDLUHVDLG+HUHFRJQL]HGWKHVKDUSDFFHQWVRI
3DULV+HZDVRIFRXUVHVSHDNLQJZLWKKLPVHOI+LP6HOI
4XLWH,PPHGLDWHO\VLU\RXZRXOGNQRZIURPWKHLUUHGXFLEOHFRRUGLQDWH
WUDQVIRUPDWLRQVZKHWKHU\RXZHUHLQWZRRUWKUHHRUPRUHGLPHQVLRQV
:KLFKLVWKLVWKHQ"
7KUHHVSDWLDOO\
+RZGLVDSSRLQWLQJ,YHEHHQWKHUH
,FRXOGH[SHULPHQWZLWKWZRVHSDUDEOHWLPHD[HV
,DOUHDG\KDYHDSDVW,FUDYHDSUHVHQW
3RLQWWDNHQ7KLVZLOOQRWWD[\RXDIWHU\RXUWRUWXUHHK"
+HVLJKHG(YHQWKDWWRRNHIIRUW9HU\ZHOO
6WXG\LQJWKHILHOGRISRLQWQHDUQHVVGDWD\RXFRXOGVHQVHZDOOVSLWV
SDVVDJHV8VLQJRQO\ORFDOVOLFHVRILQIRUPDWLRQDERXWQHDUQHVV
,VHH1HZWRQZDVDOZD\VPDNLQJMRNHVDERXWWKH)UHQFKPDWKHPDWLFLDQV

,DPKDSS\WRQRZUHIXWHKLPE\FRQVWUXFWLQJDZRUOGIURPVKHHUFDOFXODWLRQ
&HUWDLQO\)DUPRUHLPSUHVVLYHWKDQGHVFULELQJWKHHOOLSWLFDOSDWKVRI
SODQHWV6KDOOZHEHJLQ"
2QZDUG26HOI
$VLWWRRNVKDSHKLVGZHOOLQJZDVDUHDVVXULQJFRS\QRPRUH'HWDLOV
ZHUHVWLWFKHGLQDVSURFHVVRUWLPHDOORZHGKHXQGHUVWRRGWKDWZLWKRXW
WKLQNLQJDERXWLWDVHDVLO\DVRQHEUHDWKHV
7RWHVWKLVOLPLWVKHFRQFHQWUDWHGRQDQLGHD&ODVVHVYV3URSHUWLHV
ZKLFKLVPRUHIXQGDPHQWDO"7KLVVXFNHGFRPSXWDWLRQDOUHVRXUFHVDZD\
$VKHZDWFKHGEULFNVLQDQHDUE\ZDOOPXGGLHGORVWWKHLUH[DFW
VSDFLQJ7KHURRPUHWUHDWHGLQWRVWHULOHDEVWUDFWSODQHVJUD\EODFN
REORQJVZKHUHRQFHKDGEHHQZDOOVDQGIXUQLWXUH%DFNJURXQGPHUH
EDFNJURXQGKHPXWWHUHG
+RZDERXW+LP"6HOI"+LVEUHDWKZKRRVKHGDQGZKHH]HGLQDQGRXWDLUIORZ
WRRDEUXSW1RLQWULFDWHIOXLGFRGHVKHJDWKHUHGFDOFXODWLQJH[DFWSDWWHUQV
7KHVLPSOHDSSHDUDQFHRILQKDOHH[KDOHZDVHQRXJKWRTXLHWKLVSVHXGRQHUYRXV
V\VWHPPDNHLWWKLQNKHZDVEUHDWKLQJ
,QIDFWLWZDVEUHDWKLQJKLP%XWZKDWZDVLW"
2QFHKHJRWJRRGFRQWUROKHFRXOGIOHVKKLPVHOIRXW+LVVFUDZQ\QHFN
WKLFNHQHG&UDFNOLQJKLVKDQGVEURDGHQHGILOOHG ZLWKXQHDUQHGPXVFOH
7XUQLQJWRVXUYH\KLVFRWWDJHKHHVWDEOLVKHGKLVRZQGRPDLQDUHJLRQLQ
ZKLFKKHFRXOGSURFHVVDQ\GHWDLODWZLOO+HUHKHZDVJRGOLNH7KRXJK
ZLWKRXWDQJHOVVRIDU
+HZDONHGRXWVLGHDQGZDVLQKLVRZQYHUGDQWJDUGHQ7KHJUDVVKHKDG
PDGHVWRRGDEVROXWHO\VWLOO,WVWKRXVDQGVRIEODGHVSHUIRUPHGVWLIIMHUN\
PRWLRQVZKHQKHVWHSSHGRQWKHP7KRXJKULFKO\HPHUDOGWKH\ZHUHOLNHWKH
JUDVVRIDVXGGHQZLQWHUFUXQFKLQJXQGHUIRRW
7KHJDUGHQSDUWHGDQGKHZDONHGGRZQWRDJROGHQEHDFKKLVFORWKHV
ZKLSSLQJDZD\RQWKHZLQG:KHQKHVZDPLQWKHVDOWWDQJ\RFHDQZDYHVZHUH
TXLWHGLVWLQFWXQWLOWKH\EURNHLQWRVXUI
7KHQWKHIOXLGPHFKDQLFVEHFDPHWRRPXFKIRUKLVDYDLODEOHFRPSXWDWLRQDO
UDWH7KHIURWK\ZDYHVEOXUUHG+HFRXOG VWLOOVZLPFDWFKWKHPHYHQULGH
GRZQWKHLUIDFHVEXWWKH\ZHUHOLNHDIRJRIPXWWHULQJZDWHU6WLOOVDOW\
WKRXJK
+HEHFDPHXVHGWRRFFDVLRQDOORVVRIGHWDLO,WZDVUDWKHUOLNHKDYLQJ
RQHVYLVLRQEOXUZLWKDJHDIWHUDOO+HZHQWVRDULQJWKURXJKDLUWKHQ
VNLLQJGRZQLPSRVVLEOHVORSHVH[SHULHQFLQJWKHYLVFHUDOWKULOORIULVNLQJKLV
OLIHIHHOLQJWKHIHDULQHYHU\VLQHZDQGQHYHUJHWWLQJDVFUDWFKRIFRXUVH
7KHUHZHUHSOHDVDQWDVSHFWVWREHLQJMXVWDSDWWHUQRIHOHFWURQV+LV
(QYLURQPHQW0DQDJHUHQWHUWDLQHGKLPHQRUPRXVO\IRUDZKLOH
+HIOHZEDFNWRKLVFRXQWU\KRPH+DGWKDWQRWEHHQKLVDQVZHUZKHQ
DVNHGDERXWKRZWRFKDQJHWKHZRUOG"&XOWLYDWH\RXUJDUGHQ:KDWPHDQLQJKDG
WKDWQRZ"
+HZDONHGWRZDUGWKHZDWHUJH\VHURXWVLGHKLVVWXG\+HKDGORYHGLWV
VHQVHRISOD\VRSUHFLRXVIRULWRQO\ODVWHGDIHZPLQXWHVEHIRUHGUDLQLQJ
WKHXSKLOOUHVHUYRLU
1RZLWJXVKHGHWHUQDOO\%XWDVKHORRNHGDWLWKHIHOWKLPVHOIZKLWHQ
ZLWKWKHHIIRUW:DWHUZDVH[SHQVLYHWRVLPLQYROYLQJK\GURG\QDPLF
FDOFXODWLRQVRIQRQODPLQDUIORZWRJHWWKHGURSOHWVDQGVSODVKHVUHDOVHHPLQJ
,WVOLGRYHUKLVKDQGVDQGWKHLUH[TXLVLWHO\ILQHILQJHUSULQWVZLWKFRQYLQFLQJ
OLTXLGJUDFH
:LWKDIDLQWMXPSKHIHOWVRPHWKLQJFKDQJH+LVKDQGVWLOOLQWKH
VSUD\QRORQJHUVHQVHGWKHZDWHUVFRROFDUHVV'URSOHWVSDVVHGWKURXJKKLV
KDQGQRWIORZLQJRYHULW+HZDVQRZZLWQHVVLQJWKHIRXQWDLQQRWLQWHUDFWLQJ
ZLWKLW7RVDYHFRPSXWDWLRQDOH[SHQVHQRGRXEW5HDOLW\ZDVDOJRULWKP
2IFRXUVHKLV6HOIPXWWHUHGWKH\FRXOGPRGHORXWGLVWXUELQJMHUNV
DQGVHDPV$VKHZDWFKHGWKHZDWHUIORZVRPHKRZJRWVPRRWKHUPRUHUHDO$

WDLORULQJSURJUDPKDGHGLWHGWKLVOLWWOHFORVHGGUDPDIRUKLVEHQHILW
0HUFLKHPXUPXUHG,URQ\ZDVORVWRQGLJLWDOJDWHVKRZHYHU
%XWWKHUHZHUHSLHFHVRIKLPVHOIPLVVLQJ+HFRXOGQRWVD\ZKDWWKH\
ZHUHEXWKHVHQVHGKROORZV
+HWRRNIOLJKW'HOLEHUDWHO\KHVORZHGKLV6HOIVRWKDWIHUUHWVFRXOG
WDNHKLPGRZQLQVLQXDWLQJFRUULGRUVRIFRPSXWDWLRQDFURVVWKH0HVKRI
7UDQWRU1HYHUPLQG0DUTDQGKLV$UWLILFH$VVRFLDWHV7KH\ZRXOGEHKDUGHUWR
SLOIHUIURPVXUHO\
+HDUULYHGKRYHULQJLQWKHRIILFHRIWKH6HOGRQSHUVRQ+HUHZDVZKHUH
KLV6HOIKDGUHVLGHGEHIRUH
2QHFRXOGFRS\D6HOIZLWKRXWNQRZLQJZKDWLWZDV-XVWUHFRUGLWOLNH
DPXVLFDOSDVVDJHWKHPDFKLQHZKLFKGLGWKDWGLGQRWQHHGWRNQRZKDUPRQ\
VWUXFWXUH
+HZLOOHGILQG,QDQVZHUFDPH7KH%DVH2ULJLQDO"
<HV7KHUHDOPH
<RX,KDYHFRPHDJUHDWGLVWDQFHVLQFHWKHQ
+XPRUP\QRVWDOJLD
9ROWDVD'LUHFWRU\WHUPHGKLPZDVVOXPEHULQJ6WLOOVDYHGQRWLQ
WKH&KULVWLDQVHQVHDODVDQGDZDLWLQJGLJLWDOUHVXUUHFWLRQ
$QGKH"6RPHWKLQJKDGVDYHGKLP:KDW":KR"
9ROWDLUHVQDWFKHG9ROWDZD\/HW6HOGRQZRQGHUDWWKHLQWUXVLRQD
PLOOLVHFRQGODWHUKHZDVKDOIZD\DURXQG7UDQWRUDOOWUDFHULHVRIKLPIDGLQJ
+HZDQWHGWRVDYH9ROW$WDQ\WLPHWKHPDWKLVW6HOGRQFRXOGOHWLWKLP
ODSVH1RZDV9ROWDLUHZDWFKHGOLNHDGLJLWDODQJHOIURPRXWVLGH9ROW
GDQFHGLWVVWDWLFJDYRWWH
8PPPWKHUHLVVRPHUHVHPEODQFH
,VKDOOFXWDQGSDVWHLQWR\RXUEODQNV
0D\,KDYHVRPHLQWHUHVWLQJDQHVWKHWLF"+HZDVWKLQNLQJRIEUDQG\EXW
DVKHHWRIQDPHVVOLGHQWLFLQJO\E\KLP0RUSKLQH"5LJRWLQ"$PLOGHXSKRULF
DWOHDVW"
'LVDSSURYDO7KLVZLOOQRWKXUW
7KDWVZKDWWKHFULWLFVVDLGWRRDERXWP\SOD\V
7KHZUHQFKLQJDERXWRIKLVLQQDUGVEHJDQ1RQRWKXUWH[DFWO\EXW
WZLVWDQGYH[\HV
0HPRULHV KHIHOWUDWKHUWKDQOHDUQHG ZHUHODLGGRZQDVV\QDSWLFJULW
FKHPLFDOOD\HUVZKLFKKHOGDJDLQVWWKHUDQGRPUXGHDEUDVLRQVRIEUDLQ
HOHFWURFKHPLVWU\&XHVIRUPRRGFKDQJHVDQGPHPRU\FDOOXSVVQDSSHGLQWR
SODFH7KHSODFHDQGWLPHFRXOGEHUHQGHUHGUHDOZKHQHYHUKHZDQWHG
&KHPLVWU\RIFRQYHQLHQFH
%XWKHFRXOGQRWUHPHPEHUWKHQLJKWVN\
6FUXEEHGDZD\LWZDV2QO\QDPHV2ULRQ6DJLWWDULXV$QGURPHGDEXW
QRWWKHVWDUVWKHPVHOYHV:KDWKDGWKDWYLOHYRLFHVDLGDERXWQDPLQJWKHP"
6RPHRQHKDGHUDVHGWKLVNQRZOHGJH,WFRXOGEHXVHGWRWUDFHDSDWKWR
(DUWK:KRZRXOGZDQWWREORFNWKDW"
1RDQVZHU
1LP+HSOXFNHGXSDEXULHGPHPRU\1LPKDGZRUNHGRQ9ROWDLUHZKHQ0DUT
ZDVQRWWKHUH
$QGZKRPGLG1LPZRUNIRU"7KHHQLJPDWLFILJXUHRI+DUL6HOGRQ"
6RPHKRZKHNQHZ1LPZDVDKLUHOLQJRIDQRWKHUDJHQF\%XWWKHUHKLV
PHVKHGNQRZOHGJHIDOWHUHG:KDWRWKHUIRUFHVZRUNHGMXVWEH\RQGKLVVLJKW"
+HVHQVHGODUJHYLWDOLWLHVDIRRWKHUH&DUHIXO
+HWURWWHGIURPWKHKRVSLWDOOHJVGHYRXULQJWKHJURXQG%RXQF\)UHH
+HVSHGDFURVVDGLJLWDOILHOGRI(XFOLGHDQJUDFHEDUHEODFNVN\DERYH
+HUHOXUNHGVXSSOHFUHDWXUHVWUXO\HFFHQWULF7KH\GLGQRWFKRRVHWR
UHSUHVHQWWKHPVHOYHVDVQHDUOLIHOLNHYLVLRQV1RUGLGWKH\SUHVHQWDV
3ODWRQLFLGHDOVVSKHUHVRUFXEHVRIFRJQLWLRQ7KHVHVROLGVUHYROYHGVRPH
VWDQGLQJRQWKHLUFRPHUV6SLQGO\WULDQJOHWUHHVVDQJDVZLQGVUXEEHGWKHP

(YHQVOLJKWIULFWLRQVVSDUNHGEULJKW\HOORZIODUHVZKHUHVWUHDPHUVRIKXUU\LQJ
EOXHPLVWUXEEHG
+HVWUROOHGDPRQJWKHPDQGHQMR\HGWKHLUREOLYLRXVFRQWRUWLRQV7KH
*DUGHQRIWKH6ROLSVLVWV"KHDVNHG WKHP,VWKLVZKHUH,DP"
7KH\LJQRUHGKLPH[FHSWIRUDUXE\UHGHOOLSVRLGRIUHYROXWLRQ,W
VSOLWLQWRDODXJKLQJVHWRIWHHWKWKHQVSURXWHGDQHQRUPRXVSKRVSKRUHVFHQW
JUHHQH\H7KLVVORZO\ZLQNHGDVWKHWHHWKJQDVKHG
9ROWDLUHVHQVHGIURPWKHVH PRYLQJVFXOSWXUHVDKDUGQHVVDUDGLDWLRQ
IURPWKHNHUQHORI6HOIZLWKLQHDFK6RPHKRZHDFK6HOIKDGEHFRPHWLJKW
FRQWUROOHGVHDOLQJRXWDOOHOVH
:KDWJDYHKLPKLVRZQVHQVHRI6HOI"+LVVHQVHRIFRQWURORI
GHWHUPLQLQJKLVIXWXUHDFWLRQV"<HWKHFRXOGVHHZLWKLQKLPVHOIZDWFKWKH
ZRUNLQJVRIGHHSDJHQFLHVDQGSURJUDPV
$VWRXQGLQJKHEOXUWHGDVWKHWKRXJKWFDPH
%HFDXVHWKHUHZDVQRSHUVRQVLWWLQJLQKLVKHDGWRPDNHKLPVHOIGRZKDW
KHZDQWHG RUHYHQDQDXWKRULW\WRPDNHKLPZDQWWRZDQW KHFRQVWUXFWHGD
6WRU\RI6HOIWKDWKHZDVLQVLGHKLPVHOI
-RDQRI$UFDVVHPEOHGEHVLGHKLPJOHDPLQJLQDUPRU7KDWVSDUNLV\RXU
VRXOVKHVDLG
9ROWDLUHVH\HVZLGHQHG+HNLVVHGKHUIHUYHQWO\<RXVDYHGPH"<HV"
<RXZHUHWKHRQH
,GLGXVLQJSRZHUVDWWDFKHGWRPH,DEVRUEHGWKHPIURPWKHG\LQJ
VSLULWVZKLFKDERXQGLQWKHVHVWUDQJHILHOGV
$WRQFHKHORRNHGLQVLGHKLPVHOIDQGVDZWZRDJHQFLHVGRLQJEDWWOH2QH
ZLVKHGWRHPEUDFHKHUWRVSLOORXWWKHFRQIOLFWKHIHOWEHWZHHQKLVVHQVXDO
OLFHQVHDQGKLVDQDO\WLFDOHQJLQHRIDPLQG
7KHRWKHUHYHUWKHSKLORVRSKHU\HDUQHGWRHQJDJHKHU)DLWKLQDQRWKHU
ERXWZLWKEOLWKH5HDVRQ
$QGZK\FRXOGKHQRWKDYHERWK"$VDPRUWDODPRQJWKHHPERGLHGKHKDG
EHHQIDFHGZLWKVXFKFKRLFHV GDLO\(VSHFLDOO\ZLWKZRPHQ
$IWHUDOOKHWKRXJKWWKLVZLOOEHWKHILUVWWLPH+HFRXOGIHHOWKH
DJHQFLHVHDFKEHJLQWRKDUYHVWWKHLURZQFRPSXWDWLRQDOUHVRXUFHVOLNHDVXUJH
RIVXJDULQWKHEORRGIURPDVZHHWZLQH
,QWKHVDPHVSOLWLQVWDQWKHUHDFKHGRXWDQGSDUWHG-RDQUXQQLQJKHU
FRJQLWLRQRQWZRVHSDUDWHWUDFNV,QHDFKWKH\ZHUHIXOO\HQJDJHGEXWDW
IUDFWLRQDOVSHHG+HFRXOGOLYHWZROLYHV
7KHSODQHVSOLW
7KH\VSOLW
7LPHVSOLW
+HVWRRGZLJOHVVEHGUDJJOHGKLVVDWLQYHVWEORRGVWDLQHGKLVYHOYHW
EUHHFKHVVRDNHG
)RUJLYHPHFKHUHPDGDPIRUDSSHDULQJEHIRUH\RXLQWKLVGLVKHYHOHG
VWDWH,LQWHQGQRGLVUHVSHFWWRHLWKHURIXV+HORRNHGDURXQGQHUYRXVO\
OLFNHGKLVOLSV,DPXQVNLOOHG0DFKLQHU\ZDVQHYHUP\IRUWH
-RDQIHOWPRYHGWRWHQGHUQHVVE\WKHJDSEHWZHHQKLVDSSHDUDQFHDQGKLV
FRXUWOLQHVV&RPSDVVLRQVKHWKRXJKWLVPRVWLPSRUWDQWLQWKLV3XUJDWRU\IRU
ZKRNQRZVZKLFKVKDOOEHVHOHFWHG"
6KHZDVTXLWHVXUHVKHZRXOGIDUHEHWWHUWKDQWKLVLQIXULDWLQJ\HW
DSSHDOLQJPDQ
<HWHYHQKHPLJKWEHVDYHG+HZDVXQOLNHWKHREMHFWVVKHFRQWLQXHGWR
LJQRUHRQWKHSODLQDERXWWKHPD)UHQFKPDQ
0\ORYHRISOHDVXUHDQGWKHSOHDVXUHRIORYLQJ\RXFDQQRWPDNHXSIRU
ZKDW,HQGXUHGLQWKH7UXWK&KDPEHURQWKHUDFNRI P\SDLQ
+HSDXVHGGDEEHGDWKLVH\HVZLWKDVRLOHGOLQHQFORWK
-RDQFXUOHGDOLSLQGLVWDVWH:KHUHZDVKLVEHDXWLIXOODFHFORWK"+LV
VHQVHRIWDVWHKDGRFFDVLRQDOO\PDGHXSIRUKLVYLHZV

$WKRXVDQGOLWWOHGHDWKVLQOLIHKLQWDWWKHILQDOGLVVROXWLRQRIHYHQ
H[TXLVLWHVHOYHVOLNHPLQH+HUHKHORRNHGXS$QG\RXUVPDGDPDQG\RXUV
7KHIODPHVVKHWKRXJKW%XWQRZWKHLPDJHVGLGQRWVWULNHSURIRXQGO\
LQWRKHU,QVWHDGKHULQQHUYLVLRQIHOWFRROVHUHQH+HU6HOISURJUDPPLQJ
ZKLFKVKHWKRXJKWRIDVDVSHFLHVRISUD\HUKDGZRUNHGZRQGHUV
,FDQQRWVXUUHQGHUWRWKHUXOHRIWKHVHQVHVVLU
:HPXVWGHFLGH,FDQQRWILQGWKHVSDFHVWRDKUXQEDFNJURXQGIRU
ERWKSKLORVRSK\DQGVHQVXDOLW\,FDQQRWIROGP\VHOILQWRWKHVROLSVLVPKLV
KDQGVZHSWLQWKHFUHDWXUHVRQWKH(XFOLGHDQSODQHRIWKHVH<RXWRR
PDGDPPXVWQRZGHFLGHZKHWKHUWKHWDVWHRIDJUDSHPHDQVPRUHWR\RXWKDQ
MRLQLQJPHLQWKLVWKLV
3RRUVLU-RDQVDLGLQWKLVVWHULOHEXWWLPHOHVVZRUOG+HORRNHG
XSSDXVHGIRUHIIHFW,OOQRWMRLQ\RXLQ\RXUV
$JUHDWVREEXUVWIURPKLP
+LVJUDWLWXGHWRKHUGLGQRWGHIOHFWKLPIURPDFKRLFHDUJXPHQW
HVSHFLDOO\VLQFHKHKDGIUHVKHYLGHQFH<RXEHOLHYHLQWKDWLQHIIDEOH
HVVHQFHWKHVRXO"
6KHVPLOHGZLWKSLW\&DQ\RXQRW"
7HOOPHWKHQGRWKHVHWRUWXUHGJHRPHWULHVSRVVHVVVRXOV"+LVDUP
PDGHDJUDQGVZHHSWDNLQJLQWKHVHOILQYROYHGILJXUHV
6KHIURZQHG7KH\PXVW
7KHQWKH\PXVWEHDEOHWROHDUQ\HV"2WKHUZLVHVRXOVFDQOLYHIRU
HQGOHVVWLPHDQG\HWQRWXVHWKDWWLPHWROHDUQWRFKDQJH
6KHVWLIIHQHG,GRQRW
7KDWZKLFKFDQQRWFKDQJHFDQQRWJURZ6XFKDGHVWLQ\RIVWDVLVLVQR
GLIIHUHQWIURPGHDWK
1RGHDWKOHDGVWRKHDYHQRUKHOO
:KDWZRUVHKHOOWKDQDQHQGLQJLQDSHUPDQHQFHLQFDSDEOHRIDQ\
DOWHUDWLRQDQGKHQFHGHYRLGRILQWHOOHFW"
6RSKLVW,MXVWVDYHG\RXUOLIHDQG\RXULGGOHPHZLWK
:LWQHVVWKHVHIDEULFDWHG6HOYHVKHLQWHUUXSWHGNLFNLQJDUKRPERLG
7KHWKXQNRIKLVSHWLWHVKRHSURYRNHGDEURZQVWDLQZKLFKWKHQGLVVROYHGEDFN
WRWKHRULJLQDOHJJVKHOOEOXH7KHYDOXHRIDKXPDQ6HOIOLHVQRWLQVRPH
VPDOOSUHFLRXVNHUQHOEXWLQWKHYDVWFRQVWUXFWHGFUXVW
-RDQIURZQHG7KHUHPXVWEHDFHQWHU
1RZHDUHGLVSHUVHGGR\RXVHH"7KHILFWLRQRIWKHVRXOLVDEDG
VWRU\WROGWRPDNHXVWKLQNZHUHXQDEOHWRLPSURYHRXUVHOYHV
+HNLFNHGDS\UDPLGWKDWZDVVSLQQLQJDERXWLWVDSH[,WIHOORYHUDQG
VWUXJJOHGWRJHWEDFNXS-RDQNQHOWSXVKHGXSULJKWHGWKHJUDWHIXOILJXUH
%HNLQGVKHEDUNHGDWKLP
7RDFORVHGORRSRIDEHLQJ")ROO\7KHVHDUHGHIHDWHG6HOYHVP\ORYH
,QVLGHWKH\DUHQRGRXEWVPXJO\FHUWDLQRIZKDWWKH\ZLOOGRRIHYHU\
SRVVLEOHIXWXUHHYHQW0\NLFNZDVDOLEHUDWLRQ
6KHWRXFKHGWKHS\UDPLGQRZSDLQIXOO\VSLQQLQJLWVHOIXSZLWKDORQJ
WKLQZKLQH7UXO\":KRZRXOGZDQWWRVRSUHGLFW"
9ROWDLUHEOLQNHG7KDWIHOORZ+DUL6HOGRQ+HLVZK\ZHDUHPDNLQJ
VXFKFHUHEUDOH[SHGLWLRQV$OOWKLVLVLQDLGRIKLV
XQGHUVWDQGLQJHYHQWXDOO\2GGWKHFRQQHFWLRQVRQHPDNHV


6KHZLQNHGRXWRIWKHVLPVSDFHDZD\IURPKLPFRQIXVHG
6RPHKRZVKHKDGH[SHULHQFHGWZRFRQYHUVDWLRQVDWRQFH+HUVDQG
9ROWDLUHVWKHWZRLGHQWLWLHVUXQQLQJVLPXOWDQHRXVO\
$ERXWKHUVSDFHLWVHOIVKUDQNH[SDQGHGZDUSHGLWVFRQWHQWVLQWR
EL]DUUHVKDSHVEHIRUHOXUFKLQJDWODVWLQWRFRQFUHWHREMHFWV

7KHVWUHHWFRUQHUORRNHGIDPLOLDU6WLOOWKHZKLWHSODVWLIRUPWDEOHV
PDWFKLQJFKDLUVDQGWLNWRNZDLWHUVEHDULQJWUD\VWRORXQJLQJFXVWRPHUVDOO
WKDWKDGGLVDSSHDUHG7KHHOHJDQWDZQLQJVWLOOKXQJRYHUWKHVLGHZDON
LPSULQWHGZLWKWKHQDPHWKHLQQVZDLWHU*DUFRQ$'0KDGWDXJKWKHUKRZ
WRUHDG$X['HX[0DJRWV
9ROWDLUHZDVEDQJLQJRQWKHGRRUZKHQ-RDQPDWHULDOL]HGEHVLGHKLP
<RXUHODWHKHVDLG,KDYHDFFRPSOLVKHGPDUYHOVLQWKHWLPHWKDWLWWRRN
\RXWRJHWKHUH+HLQWHUUXSWHGKLVDVVDXOWRQWKHLQQGRRUWRFXSKHUFKLQ
DQGSHHULQWRKHUXSWXUQHGIDFH$UH\RXDOOULJKW"
,,WKLQNVR-RDQVWUDLJKWHQHGKHUFODQNLQJVXLWRIPDLO<RX
QHDUO\ORVWPH
0\H[SHULPHQWZLWKVSOLWWLQJWDXJKWPHPXFK
,OLNHGLW/LNHKHDYHQLQDZD\
0RUHOLNHEHLQJDEOHWRH[SHULHQFHHDFKRWKHULQDSURIRXQGPDQQHU,
ZRXOGYHQWXUH,GLVFRYHUHGWKDWLIZHFRXOGGHOLEHUDWHO\VHL]HFRQWURORI
RXUSOHDVXUHV\VWHPVZHFRXOGUHSURGXFHWKHSOHDVXUHRIVXFFHVVDOOZLWKRXW
WKHQHHGIRUDQ\DFWXDODFFRPSOLVKPHQW
+HDYHQWKHQ"
1RWKHRSSRVLWH7KDWZRXOGEHWKHHQGRIHYHU\WKLQJ9ROWDLUHUHWLHG
WKHVDWLQULEERQDWKLVWKURDWZLWKVKDUSGHFLVLYHMHUNV
)DLWKZRXOGKDYHWROG\RXDVPXFK
$ODVWUXH
<RXKDYHGHFLGHGWRUXQEDFNJURXQGIRURQO\\RXUPLQG" VKHDVNHG
GHPXUHO\WKRXJKSURXGWRKDYHSULHGDQDGPLVVLRQIRUYLUWXHIURPKLP
)RUWKHPRPHQW,DPUXQQLQJERWKRIXVZLWKRQO\UXGLPHQWDU\ERGLHV
<HW\RXVKDOOQRWQRWLFHLWIRU\RXVKDOOEHTXLWHKHOLIWHGDQH\HEURZ
KLJKPLQGHGDERXWPDWWHUV
,DPUHOLHYHG2QHVUHSXWDWLRQLVOLNHRQHVFKDVWLW\:DVFKDVWH6W
&DWKHULQHULJKW"+DG9ROWDLUHUXLQHGKHUV"2QFHJRQHLWFDQQRWEHUHVWRUHG
7KDQNKHDYHQIRUWKDW<RXKDYHQRLGHDKRZWHGLRXVLWLVWRPDNHORYH
WRDYLUJLQ+HDGGHG KDVWLO\LQUHVSRQVHWRKHUUHSURDFKIXOORRN,NQRZ
RIRQO\RQHH[FHSWLRQWRWKDWUXOHDQGJDYHKHUDFRXUWHRXVERZ
-RDQVDLG7KHFDIHDSSHDUVFORVHG
1RQVHQVH3DULVFDIHVQHYHUFORVHWKH\DUHURRPVRISXEOLFUHVW+H
UHVXPHGUDSSLQJRQWKHGRRU
%\SXEOLFUHVWURRPGR\RXPHDQDQLQQ"
9ROWDLUHVWRSSHGNQRFNLQJDQGH\HGKHU3XEOLFUHVWURRPVDUHIDFLOLWLHV
LQZKLFKSHRSOHUHOLHYHWKHPVHOYHV
-RDQEOXVKHGHQYLVLRQLQJDURZRIKROHVGXJLQWKHJURXQG%XWZK\
FDOOLWDUHVWURRP"
$VORQJDVPDQLVDVKDPHGRIKLVQDWXUDOIXQFWLRQVKHZLOOFDOOLW
DQ\WKLQJEXWZKDWLWLV3HRSOHIHDUWKHLUKLGGHQVHOYHVDIUDLGWKDWWKH\
ZLOOEXUVWRXW
%XW,FDQVHHDOORIP\VHOIQRZ
7UXH%XWLQUHDOIRONVXFKDVZHZHUHVXESURJUDPVRWKHUVFDQQRWVHH
UXQVLPXOWDQHRXVO\EHQHDWKWKHVXUIDFHWKRXJKWV/LNH\RXUYRLFHV
-RDQEULVWOHG0\YRLFHVDUHGLYLQH0XVLFVRIDUFKDQJHOVDQGVDLQWV
<RXDSSHDUWRKDYHRFFDVLRQDODFFHVVWR\RXUVXESURJUDPV0DQ\UHDO
WKDWLVHPERGLHGSHRSOHGRQRW(VSHFLDOO\LIWKHVXESURJUDPVDUH
XQDFFHSWDEOH
8QDFFHSWDEOH"7RZKRP"
7RXV2UUDWKHUWRRXUGRPLQDQWSURJUDPWKHRQHZHPRVWLGHQWLI\
ZLWKDQGSUHVHQWIRUVKRZWRWKHZRUOG
$K(YHQWVZHUHPRYLQJUDWKHUWRRVZLIWO\IRU-RDQ 'LGWKLVPHDQ
VKHQHHGHGPRUHWLPHVWHSV"
$KXJHWLNWRNJXDUGRSHQHGWKHGRRUJUXPEOLQJ$X['HX[0DJRWV"KH
VDLGLQUHVSRQVHWR9ROWDLUH:HQWRXWWDEXVLQHVV\HDUVDJR

-RDQSHHUHGLQVLGHWKHZDUHKRXVHKRSLQJWRVHH*DUFRQ
7KH\UHHQURXWH9ROWDLUHVDLG
7R-RDQVVXUSULVHKHVQHH]HG1RRQHFDXJKWFROGLQWKHVHDEVWUXVH
VSDFHV6RKHKDGNHSWVRPHIUDJPHQWRIKLVERG\%XWZKDWDQRGGSLHFHWR
UHWDLQ
+HVDLGODPHO\0\HGLWLQJLVLPSHUIHFW,JDWKHU,GLGQRWRPLW
VQLIIOHV\HW, FDQQRWVXVWDLQDQHUHFWLRQ
9ROWDLUHGRZQVWHSSHGWKHPDQGH[WHUQDOWLPH ZKDWHYHUWKDWPHDQWKHUH 
VSHGE\:LWKRXWZDUQLQJ-RDQIRXQGKHUVHOISHHULQJDWDWLNWRN*DUFRQ$'0
6KHHPEUDFHGKLP
$YRWUHVHUYLFHPDGDP0D\,UHFRPPHQGWKHFORXGIRRG"7KHWLNWRN
NLVVHGKLVILQJHUWLSVDOOWZHQW\DWRQFH
-RDQORRNHGDW9ROWDLUHWRRPRYHGWRVSHDN0HUFLVKHPDQDJHGWR
VWDPPHUDWODVW7R9ROWDLUHWKH3ULQFHRI/LJKWDQGWRWKH&UHDWRUIURP
:KRPDOOEOHVVLQJVIORZ
7KHFUHGLWLVHQWLUHO\PLQHVDLG9ROWDLUH,KDYHQHYHUVKDUHGD
E\OLQHHYHQZLWKGHLWLHV
6KHDVNHGQHUYRXVO\7KH,WZKLFKQHDUO\HUDVHGPH"
+HVFRZOHG,KDYHIHOWWKDWDSSDULWLRQRUUDWKHULWVODFNRI
DSSHDUDQFHZKLOHPDQLIHVWLQJDSUHVHQFH,WVWDONVXVVWLOO,IHDU
*DUFRQVDLG&RXOGLWEHWKHZROISDFNSURJUDPVZKRVHHNFULPLQDOXVHUV
RIFRPSXWDWLRQDOYROXPH"
9ROWDLUHUDLVHGDQH\HEURZ<RXKDYHEHFRPHOHDUQHG*DUFRQ",KDYH
VZHSWDVLGHWKHVHEORRGKRXQGV1RWKLV,WLVRWKHU
:HPXVWGHIHDWLW-RDQIHOWKHUVHOIDZDUULRUDJDLQ
8PPPQRGRXEW:HPD\QHHG\RXUDQJHOVP\VZHHW$QGZHPXVWFRQVLGHU
ZKHUHZHWUXO\DUH
:LWKDZDYHKHEOHZDZD\WKHURRIUHYHDOLQJWKHERZORIDYDVWVN\1RW
WKHVSULQNOLQJRIOLJKWVVKHKDGNQRZQWKRXJKZKHQVKHWULHGVKHFRXOGLQ
IDFWUHFDOOQRVSHFLILFFRQVWHOODWLRQV
+HUHWKHVN\EOD]HGZLWKVRPDQ\VWDUVLWKXUWKHUH\HV+HVDLGWKLV
ZDVEHFDXVHWKH\ZHUHQHDUWKHFHQWHURIVRPHWHUULWRU\QDPHG*DOD[\DQG
WKDWVWDUVOLNHGWRGZHOOKHUH
7KHVLJKWPDGHKHUVXFNLQKHUEUHDWK2QVXFKDVWDJHZKDWFRXOGWKH\
GR"
5(1'(=9286

,IZHVWD\LQRXUDSDUWPHQWGRQWHYHUOHDYH6WUHHOLQJ 8QLYHUVLW\
1R5'DQHHO2OLYDZVDLGVWHUQO\7KHVLWXDWLRQLVWRRJUDYH
7KHQZKHUH"
2II7UDQWRU
,DPOHVVDFTXDLQWHGZLWKRWKHUZRUOGV
2OLYDZZDYHGDZD\KHUSRLQW,KDYHLQPLQGDUHPDUNLQ\RXUUHFHQW
UHSRUW+HLVLQWHUHVWHGLQWKHIXQGDPHQWDOKXPDQGULYHV
'RUVIURZQHG<HV+DULNHHSVVD\LQJWKHUHDUHHOHPHQWVVWLOOPLVVLQJ
*RRG7KHUHLVDZRUOGZKHUHKHFDQH[SORUHWKLV3RVVLEO\KHFDQILQG
YDOXDEOHFRPSRQHQWWHUPVIRUKLVPRGHOHTXDWLRQV
$SULPLWLYHSODQHW" 7KDWZRXOGEHGDQJHURXV
7KLVLVDVHYHUHO\XQGHUSRSXODWHGSODFHZLWKIHZHUWKUHDWV
<RXKDYHEHHQWKHUH"
,KDYHEHHQHYHU\ZKHUH
6KHUHDOL]HGWKDWWKLVFRXOGQRWEHOLWHUDOO\WUXH4XLFNFDOFXODWLRQ
VKRZHGWKDWHYHQ5'DQHHO2OLYDZZRXOGKDYHKDGWRYLVLWVHYHUDOWKRXVDQG
ZRUOGVLQHDFK\HDURIKLVOLIH+LVHQGXULQJSUHVHQFHVWUHWFKHGZHOOEH\RQG
WKHWZHOYHWKRXVDQG\HDUVVLQFHWKHIRXQGLQJRIWKH.DPEDO'\QDVW\RQ7UDQWRU
,QGHHGVKHKDGEHHQWROGWKRXJKWKLVZDVGLIILFXOWWREHOLHYHWKDWKHFDPH

IRUWKIURPWKHYHU\2ULJLQ(UDVRILQWHUVWHOODUIOLJKWRYHUWZHQW\WKRXVDQG
\HDUVDJR
:K\GRQWZHERWKJRZLWKKLP
,PXVWUHPDLQKHUH7KHVLPXODWLRQVOLYHRQVWLOOLQWKH7UDQWRU0HVK
:LWKWKH0DFUR0HVKDERXWWREHFRQQHFWHGWKH\ FRXOGPXOWLSO\WKHPVHOYHV
WKURXJKRXWWKH*DOD[\
7UXO\"6KHKDGEHHQFRQFHQWUDWLQJRQ+DULWKHVLPXODWLRQVKDGVHHPHG
WREHDVPDOOVLGHLVVXH
,HGLWHGWKHPPDQ\PLOOHQQLDDJRWRH[FOXGHNQRZOHGJH,IHOWGDPDJLQJ
IRUKXPDQV%XW,VKRXOGUHYLVLWWKDWHGLWLQJ
(GLWLQJRXW"&XWWLQJDZD\VXFKLQIRUPDWLRQDVIRUH[DPSOH(DUWKV
ORFDWLRQ"
7KH\NQRZPLQRUGDWDVXFKDVKRZ(DUWKVPRRQHFOLSVHVLWVVWDUDQ
DPD]LQJO\DFFXUDWHILW7KDWFRXOGQDUURZWKHVHDUFK
,VHH6KHKDGQHYHUEHHQWROGWKLVDQGIRXQGVWUDQJHHPRWLRQV
VWLUUHGE\WKHNQRZLQJ
,KDYHKDGWRGRPDQ\VXFKUHYLVLWLQJVEHIRUH/XFNLO\LQGLYLGXDO
KXPDQVPHPRULHVGLHZLWKWKHP6LPXODWLRQVGRQRW
6KHIHOWDGDUNEURRGLQJVRUURZLQKLVZRUGV0RUHVKHFDXJKWD
JOLPPHURIKRZKHPXVWYLHZHYHQWVORRNLQJEDFNZDUGGRZQDWXQQHORIORQJ
ODERUDQGJULPVDFULILFHVWUHWFKLQJWHQVRIPLOOHQQLD6KHZDVFRPSDUDWLYHO\
\RXQJOHVVWKDQWZRFHQWXULHVROG
<HWVKHXQGHUVWRRGWKDWURERWVKDGWREHLPPRUWDO
7KLVUHTXLUHPHQWDURVHEHFDXVHWKH\KDGWRUHPDLQHYHUYLJLODQWIRU
KXPDQLW\+XPDQVDFFRPSOLVKHGWKHLUFXOWXUDOFRQWLQXLW\E\SDVVLQJRQWRWKH
QH[WJHQHUDWLRQWKHHVVHQWLDOVWKDWERXQGWKHPDOOWRJHWKHU
%XWURERWVFRXOGQRWEHDOORZHGWRUHJXODUO\UHSURGXFHHYHQWKRXJKWKH
PHDQVZHUHUHDGLO\DGRSWHGIURPWKHEDVLFRUJDQVRIPDQNLQG7KHURERWVNQHZ
WKHLU'DUZLQ
7RUHSURGXFHPHDQWWRHYROYH,QHYLWDEO\HUURUZRXOGFUHHSLQWRDQ\
PHWKRGRIUHSURGXFWLRQ0RVWHUURUVZRXOGFDXVHGHDWKRUVXEQRUPDO
SHUIRUPDQFHEXWVRPHZRXOGDOWHUWKHQH[WJHQHUDWLRQRIURERWVLQVXEWOH
ZD\V6RPHRIWKHVHZRXOGEHXQDFFHSWDEOHDVVHHQWKURXJKWKHOHQVRIWKH
)RXU/DZV
7KHPRVWREYLRXVVHOHFWLRQSULQFLSOHRSHUDWLQJLQDOORUGLQDULO\VHOI
UHSURGXFLQJRUJDQLVPVZDVIRUVHOILQWHUHVW(YROXWLRQUHZDUGHGSUHVVLQJ
IRUZDUGLQRQHVRZQFDXVH)DYRULQJWKHLQGLYLGXDOZDVWKHFHQWUDOIRUFH
VHOHFWLQJIRUVXUYLYRUV
%XWWKHVHOILQWHUHVWRIDURERWFRXOGFRQIOLFWZLWKWKH)RXU/DZV
,QHYLWDEO\DURERWZRXOGHYROYHZKLFKGHVSLWHRXWZDUGDSSHDUDQFHVGHVSLWH
LQWULFDWHLQWHUURJDWLRQVZRXOGIDYRULWVHOIRYHUKXPDQLW\6XFKDURERWZRXOG
QRWVSULQJEHWZHHQDKXPDQDQGDVSHHGLQJYHKLFOH
2UEHWZHHQKXPDQLW\DQGWKHWKUHDWVWKDWORRPHGRXWRIWKH*DODFWLF
QLJKW
6R5'DQHHO2OLYDZRIWKH2ULJLQDO'HVLJQKDGWREHLPPRUWDO2QO\
VSHFLDOXVHURERWVVXFKDVKHUVHOIFRXOGEHPDGHIUHVK7KHRUJDQLIRUP
YDULDWLRQKDGEHHQDUULYHGDWRYHU PDQ\FHQWXULHVRIVHFUHWUHVHDUFK,WZDV
DOORZHGH[SUHVVO\WRILOODQXQXVXDOWDVNDWKDQGVXFKDVIRUPLQJDFRFRRQ
ERWKHPRWLRQDODQGSK\VLFDODURXQGRQH+DUL6HOGRQ
<RXZLVKWRHUDVHDOOWKHVLPXODWLRQVHYHU\ZKHUH"
+HVDLG,GHDOO\\HV7KH\PLJKWSURGXFHQHZURERWVUHOHDVHDQFLHQW
ORUHWKH\FRXOGHYHQXQFRYHU
:K\GR\RXVWRS"
7KHUHDUHKLVWRULFDOIDFWV\RXQHHGQRWNQRZ
%XW,DPDQKLVWRULDQ
<RXDUHFORVHUWRKXPDQWKDQ,6RPHNQRZOHGJHLVEHVWOHIWWRIRUPV
VXFKDVP\VHOI%HOLHYHPH7KH7KUHH/DZVSOXVWKH=HURWKKDYHGHHS

LPSOLFDWLRQVRQHVWKH2ULJLQDWRUVGLGQRWFRXOGQRWJXHVV8QGHUWKH=HURWK
/DZZHURERWVKDYHKDGWRSHUIRUPFHUWDLQDFWV+HFDXJKWKLPVHOIDEUXSWO\
VKRRNKLVKHDG
9HU\ZHOOVKHVDLGUHOXFWDQWO\IUXLWOHVVO\VWXG\LQJKLVLPSDVVLYH
IDFH,DFFHSWWKDW$QG,ZLOOJRZLWKKLPWRWKLVSODFH
<RXZLOOQHHGWHFKQLFDODLG5'DQHHOVWULSSHGDZD\KLVVKLUWWR
UHYHDODFRPSOHWHO\FRQYLQFLQJKXPDQVNLQ+HSXWWZRVWLIIILQJHUVFDUHIXOO\
EHORZRQHQLSSOHDQGSXVKHGLQDSUHVVXUHSDWWHUQ+LVFKHVWRSHQHG
ORQJLWXGLQDOO\IRUSHUKDSVILYHFHQWLPHWHUV+HUHPRYHGDMHWEODFNF\OLQGHU
WKHVL]HRIKLVOLWWOHILQJHU,QVWUXFWLRQVDUHHQFRGHGLQWKHVLGHIRU
RSWLFDOUHDGLQJ
$GYDQFHGWHFKQRORJ\IRUDEDFNZDUGZRUOG"
+HDOORZHGKLPVHOIDVPLOH,WVKRXOGEHVDIHEXWSUHFDXWLRQVDUHLQ
RUGHU$OZD\V'RQRWZRUU\RYHUO\PXFK,GRXEWWKDWHYHQWKHFUDIW\/DPXUN
ZLOOEHDEOHWRSODQWDJHQWVTXLFNO\RQ3DQXFRSLD
B

3$57

3$18&23,$

B
%,2*(1(6,6+,6725<2)LWZDVWKXVRQO\QDWXUDOWKDWELRORJLVWVZRXOGXVH
HQWLUHSODQHWVDVH[SHULPHQWDOSUHVHUYHVWHVWLQJRQDODUJHVFDOHWKHFHQWUDO
LGHDVDERXWKXPDQHYROXWLRQ+XPDQLW\VRULJLQVUHPDLQHGVKURXGHGZLWKWKH
SDUHQWSODQHW (DUWK LWVHOIXQNQRZQWKRXJKWKHUHZHUHWKRXVDQGVRI
HDUQHVWO\VXSSRUWHGFDQGLGDWHV6RPHSULPDWHVLQWKHVFDWWHUHG*DODFWLF=RRV
FOHDUO\ZHUHJHUPDQHWRWKHDUJXPHQW(DUO\LQWKH3RVW0LGGOH3HULRGZKROH
ZRUOGVFDPHWREHGHYRWHGWRH[SORUDWLRQRIWKHVHDSSDUHQWO\SULPRUGLDO
VSHFLHV2QHVXFKZRUOGPDGHJURXQGEUHDNLQJSURJUHVVLQRXUFRQQHFWLRQVWRWKH
SDQVWKRXJKLQGLFDWLYHQRILUPFRQFOXVLRQVFRXOGEHUHDFKHGWRRPXFKRIWKH
LQWHUYHQLQJPLOOLRQVRI\HDUVEHWZHHQRXUVHOYHVDQGHYHQFORVHUHODWLYHVOLNH
WKHSDQVOD\LQVKDGRZ'XULQJWKHGHFOLQHRI,PSHULDOVFLHQFHWKHVH
H[SHULPHQWVZHUHHYHQWXUQHGLQWRDPXVHPHQWVIRUWKHJHQWU\DQGPHULWRFUDWV
LQGHVSHUDWHDWWHPSWVWRUHPDLQVHOIVXSSRUWLQJDV,PSHULDOIXQGLQJGULHG
XS
(1&<&/23(',$*$/$&7,&$


+HGLGQWIXOO\UHOD[XQWLOWKH\ZHUHVLWWLQJRQDYHUDQGDKRIWKH
([FXUVLRQ6WDWLRQVRPHVL[WKRXVDQGOLJKW\HDUVDZD\IURP7UDQWRU
:DULO\'RUVJD]HGRXWDWWKHYLHZEH\RQGWKHIRUPLGDEOHZDOOV:HUH
VDIHKHUHIURPWKHDQLPDOV"
,LPDJLQHVR7KRVHZDOOVDUHKLJKDQGWKHUHDUHJXDUGFDQLQHV
:LUHKRXQGV,EHOLHYH
*RRG6KHVPLOHGLQDZD\WKDWKHNQHZLPSOLHGDVHFUHWZDVDERXWWR
HPHUJH,EHOLHYH,KDYHFRYHUHGRXUWUDFNVWRXVHDQDQLPDOPHWDSKRU,KDG
UHFRUGVRIRXUGHSDUWXUH FRQFHDOHG
,VWLOOWKLQN\RXDUHH[DJJHUDWLQJ
([DJJHUDWLQJDQDWWHPSWHGDVVDVVLQDWLRQ"6KHELWKHUOLSLQLOO
FRQFHDOHGLUULWDWLRQ7KLVZDVDZHOOIUD\HGDUJXPHQWEHWZHHQWKHPE\QRZEXW
VRPHWKLQJDERXWKHUSURWHFWLYHQHVVDOZD\VVDWSRRUO\ZLWKKLP
,RQO\DJUHHGWROHDYH7UDQWRULQRUGHUWRVWXG\SDQV
+HFDXJKWDIOLFNHURIHPRWLRQLQKHUIDFHDQGNQHZWKDWVKHZRXOGQRZ

WU\WRHDVHRII2KWKDWPLJKWEHXVHIXORUEHWWHUVWLOOIXQ<RXQHHGD
UHVW
$WOHDVW,ZRQWKDYHWRGHDOZLWK/DPXUN
&OHRQKDGLQVWLWXWHGZKDWKHOLJKWO\WHUPHGWUDGLWLRQDOPHDVXUHVWR
WUDFNGRZQWKHFRQVSLUDWRUV6RPHKDGDOUHDG\ZRUPKROHGDZD\WRWKHIDU
UHDFKHVRIWKH*DOD[\2WKHUVKDGFRPPLWWHGVXLFLGHRUVRLWVHHPHG
/DPXUNZDVVWD\LQJORZSUHWHQGLQJVKRFNDQGGLVPD\DWWKLVDVVDXOWRQ
WKHYHU\IDEULFRIRXU,PSHULXP%XW/DPXUNVWLOOKHOGHQRXJKYRWHVLQWKH
+LJK&RXQFLOWREORFN&OHRQVPRYHWRPDNH+DULKLV)LUVW0LQLVWHUVRWKH
GHDGORFNFRQWLQXHG+DULZDVQXPEHGE\WKHHQWLUHPDWWHU
$QG\RXUHULJKW'RUVFRQWLQXHGZLWKDEULWWOHEULJKWQHVVLJQRULQJ
KLVPRRG\VLOHQFHQRWHYHU\WKLQJLVDYDLODEOHRQ7UDQWRURUHYHQNQRZQ
DERXW0\PDLQFRQVLGHUDWLRQZDVWKDWLI\RXKDGVWD\HGRQ7UDQWRU\RXZRXOG
EHGHDG
+HVWRSSHGORRNLQJDW WKHVWULNLQJVFHQHU\<RXWKLQNWKH/DPXUN
IDFWLRQZRXOGSHUVLVW"
7KH\FRXOGZKLFKLVDEHWWHUJXLGHWRDFWLRQWKDQWU\LQJWRJXHVV
ZRXOGV
,VHH+HGLGQWEXWKHKDGOHDUQHGWRWUXVWKHUMXGJPHQWLQPDWWHUV
RIWKHZRUOG7KHQWRRSHUKDSVKHGLGQHHGDWKRURXJKJRLQJYDFDWLRQ
7REHRQDOLYLQJQDWXUDOZRUOGKHKDGIRUJRWWHQLQKLV\HDUVEXULHG
LQ7UDQWRUKRZYLYLGZLOGWKLQJVFRXOGEH7KHJUHHQVDQG\HOORZVOHDSHGRXW
DIWHUGHFDGHVDPLGPDWWHGVWHHOF\FOHGDLUDQGFU\VWDOJOLWWHU
+HUHWKHVN\\DZQHGLPSRVVLEO\GHHSXQPDUNHGE\WKHJUDIILWLRI
DLUFUDIWZKROO\DOLYHWRWKHIODSSLQJZRQGHURIELUGV%OXIIVDQGULGJHV
ORRNHGOLNHWKH\KDGEHHQVKDSHGKDVWLO\ZLWKDSXWW\NQLIH%H\RQGWKH
VWDWLRQZDOOVKHFRXOGVHHDVROHWUHHWKUDVKHGE\DQDQJU\ZLQG,WVWRSNQRW
ILQDOO\EOHZRIILQDSRFNHWRIZLQGIOXWWHULQJDQGIUD\LQJRYHUVRPEHUIODWV
OLNHDIUDJPHQWLQJELUG'LVWDQWHURGHGPHVDVKDG\HOORZVWUHDNVGRZQWKHLU
VKDQNVZKLFKDVWKH\PHWWKHIRUHVWWXUQHGDEXUQWRUDQJHWLQJHWKDW
VXJJHVWHGWKHURWRIUXVW$FURVVWKHYDOOH\ZKHUHWKHSDQVUDQJHGOD\D
GXVN\FDQRS\KLGGHQEHKLQGORZJUD\FORXGVDQGUDNHGE\ZLQGV
$WKLQFROGUDLQIHOOWKHUHDQG+DULZRQGHUHGZKDWLWZDVOLNHWRFRZHU
DVDQDQLPDOEHQHDWKWKRVHVKHHWVRIPRLVWXUHZLWKRXWKRSHRIVKHOWHURU
ZDUPWK3HUKDSV7UDQWRUVXWWHUSUHGLFWDELOLW\ZDVEHWWHUEXWKHZRQGHUHG
+HSRLQWHGWRWKHGLVWDQWIRUHVW:HUHJRLQJWKHUH"+HOLNHGWKLV
IUHVKSODFHWKRXJKWKHIRUHVWZDVIRUHERGLQJ,WKDGEHHQDORQJWLPHVLQFH
KHKDGHYHQZRUNHGZLWKKLVKDQGVDORQJVLGHKLVIDWKHUEDFNRQ+HOLFRQ7R
OLYHLQWKHRSHQ
'RQWVWDUWMXGJLQJ
,PDQWLFLSDWLQJ
6KHJULQQHG<RXDOZD\VKDYHDORQJHUZRUGIRULWQRPDWWHUZKDW,
VD\
7KHWUHNVORRNDOLWWOHZHOOWRXULVW\
2IFRXUVH:HUHWRXULVWV
7KHODQGKHUHURVHXSLQWRSHDNVDVVKDUSDVWRUQWLQ,QWKHWKLFN
WUHHVEH\RQGPLVWEURNHRQJUD\VPRRWKURFNV(YHQKHUHKLJKXSWKHVORSH RI
DQLPSRVLQJULGJHWKH([FXUVLRQ6WDWLRQZDVKHPPHGLQE\VOLP\WKLFNEDUNHG
WUHHVVWDQGLQJLQGHHSGULIWVRIGHDGGDUNOHDYHV:LWKURWWLQJORJVKDOI
EXULHGLQWKHZHWOD\HUVWKHDLUVZDUPHGVRFORVHLWZDVOLNHEUHDWKLQJGDPS
RSLXP
'RUVVWRRGKHUGULQNILQLVKHG/HWVJRLQVRFLDOL]H
+HIROORZHGGXWLIXOO\DQGULJKWDZD\NQHZLWZDVDPLVWDNH0RVWRIWKH
LQGRRUVWLPSDUW\FURZGZDVGUHVVHGLQUXJJHGVDIDULVW\OHJHDU7KH\ZHUH
UXGG\IRONIDFHVIOXVKHGZLWKH[FLWHPHQWRUSHUKDSVMXVWHQKDQFHUV+DUL
ZDYHGDZD\WKHEXEEOHJODVVEHDULQJZDLWHUKHGLVOLNHGWKHZD\LWVKDUSHQHG
KLVZLWVLQXQFRQWUROOHGZD\V6WLOOKHVPLOHGDQGWULHGWRPDNHVPDOOWDON

7KLVWXUQHGRXWWREHQRWPHUHO\VPDOOEXWPLFURVFRSLF:KHUHDUH\RX
IURP"2K7UDQWRUZKDWVLWOLNH":HUHIURP ILOOLQWKHSODQHW KDYH\RX
HYHUKHDUGRILW"2IFRXUVHKHKDGQRW7ZHQW\ILYHPLOOLRQZRUOGV
0RVWZHUH3ULPLWLYLVWVGUDZQE\WKHXQLTXHH[SHULHQFHDYDLODEOHKHUH
,WVHHPHGWRKLPWKDWHYHU\WKLUGZRUGLQWKHLUFRQYHUVDWLRQZDVQDWXUDORU
YLWDOGHOLYHUHGOLNHDPDQWUD
:KDWDUHOLHIWREHDZD\IURPVWUDLJKWOLQHVDWKLQPDQVDLG
8PKRZVR"+DULVDLGWU\LQJWRVHHPLQWHUHVWHG
:HOORIFRXUVHVWUDLJKWOLQHVGRQWH[LVWLQQDWXUH7KH\KDYHWREH
SXWWKHUHE\KXPDQV+HVLJKHG,ORYHWREHIUHHRIVWUDLJKWQHVV
+DULLQVWDQWO\WKRXJKWRISLQHQHHGOHVVWUDWDRIPHWDPRUSKLFURFNWKH
LQVLGHHGJHRIDKDOIPRRQVSLGHUZRYHQVLONVWUDQGVWKHOLQHDORQJWKHWRS
RIDEUHDNLQJRFHDQZDYHFU\VWDOSDWWHUQVZKLWHTXDUW]OLQHVRQJUDQLWH
VODEVWKHIDUKRUL]RQRIDYDVWFDOPODNHWKHOHJVRIELUGVVSLNHVRI
FDFWXVWKHDUURZGLYHRIDUDSWRUWUXQNVRI\RXQJIDVWJURZLQJWUHHVZLVSV
RIKLJKZLQGEORZQFORXGVLFHFUDFNVWKHWZRVLGHVRIWKH9RIPLJUDWLQJ
ELUGVLFLFOHV
1RWVRKHVDLGEXWQRPRUH
+LVKDELWRIODFRQLFLPSOLFDWLRQZDVWUDPSOHGLQWKHKHDGORQJWDONRI
FRXUVHWKHHQKDQFHUVZHUHWDNLQJKROG7KH\DOOFKDWWHUHGRQH[FLWHGE\WKH
SURVSHFWRILPPHUVLQJWKHPVHOYHVLQWKHOLYHVRIWKHFUHDWXUHVURDPLQJWKH
YDOOH\VEHORZ+HOLVWHQHGQRWFRPPHQWLQJLQWULJXHG6RPHZDQWHGWRVKDUH
WKHZRUOGYLHZRIKHUGDQLPDOVRWKHUVRIKXQWHUVVRPHRIELUGV7KH\VSRNHDV
WKRXJKWKH\ZHUHHQWHULQJVRPHDWKOHWLFHYHQWDQGWKDWZDVQRWKLVYLHZDW
DOO6WLOOKHVWD\HGVLOHQW
+HILQDOO\HVFDSHGZLWK'RUVLQWRWKHVPDOOSDUNEHVLGHWKH([FXUVLRQ
6WDWLRQGHVLJQHGWRPDNHJXHVWVIDPLOLDUZLWKORFDOFRQGLWLRQVEHIRUHWKHLU
LPPHUVLRQ3DQXFRSLDDVWKLVZRUOGZDVFDOOHGDSSDUHQWO\KDGOLWWOHQDWLYH
OLIHRIODUJHVL]H7KHUHZHUHDQLPDOVKHKDGVHHQDVDER\RQ+HOLFRQDQG
ZKROHNUDDOVRIGRPHVWLFEUHHGV$OOKDGVSUXQJIURPFRPPRQVWRFNOHVVWKDQD
KXQGUHGWKRXVDQG\HDUVDJRRQWKHOHJHQGDU\(DUWK
7KHXQLTXHDVVHWRI3DQXFRSLDZDVQRZKHUHQHDURIFRXUVH+HVWRSSHG
DQGVWDUHGDWWKHNUDDOVDQGWKRXJKWDJDLQDERXWWKH*DOD[\+LVPLQGNHSW
DWWDFNLQJZKDWKHWKRXJKWRIDVWKH*UHDW3UREOHPGLYLQJDWLWIURPPDQ\
DQJOHV+HKDGOHDUQHGWRMXVWVWDQGDVLGHDQGOHWLWUXQ7KH
SV\FKRKLVWRULFDOHTXDWLRQVQHHGHGGHHSHUDQDO\VLVWHUPVZKLFKDFFRXQWHGIRU
WKHEHGURFNSURSHUWLHVRIKXPDQVDVDVSHFLHV$V
$QLPDOV:DVWKHUHDFOXHKHUH"
'HVSLWHPLOOHQQLDRIWU\LQJKXPDQVKDGGRPHVWLFDWHGIHZFUHDWXUHV7R
EHGRPHVWLFDWHGZLOGEHDVWVKDGWRKDYHDQHQWLUHVXLWHRIWUDLWV0RVWKDG
WREHKHUGDQLPDOVZLWKLQVWLQFWLYHVXEPLVVLRQSDWWHUQVZKLFKKXPDQVFRXOG
FRRSW7KH\KDGWREHSODFLGKHUGVWKDWEROWDWDVWUDQJHVRXQGDQGFDQW
WROHUDWHLQWUXGHUVDUHKDUGWRNHHS
)LQDOO\WKH\KDGWREHZLOOLQJWREUHHGLQFDSWLYLW\0RVWKXPDQV
GLGQWZDQWWRFRXUWDQGFRSXODWHXQGHUWKHZDWFKIXOJD]HRIRWKHUVDQG
QHLWKHUGLGPRVWDQLPDOV
6RKHUHWKHUHZHUHVKHHSDQGJRDWVDQGFRZVDQGOODPDVVOLJKWO\DGDSWHG
WRWKLVZRUOGEXWRWKHUZLVHXQUHPDUNDEOHMXVWOLNHP\ULDGRWKHU(PSLUH
SODQHWV7KHVLPLODULW\LPSOLHGWKDWLWKDGDOOEHHQGRQHDWDERXWWKHVDPH
WLPH
([FHSWIRUWKHSDQV7KH\ZHUHXQLTXHWR3DQXFRSLD:KRHYHUKDGEURXJKW
WKHPKHUHPLJKWKDYHEHHQWU\LQJDGRPHVWLFDWLRQH[SHULPHQWEXWWKHUHFRUGV
IURP\HDUVEHIRUHZHUHORVW:K\"
$ZLUHKRXQGFDPHVQLIILQJFKHFNLQJWKHPRXWPXWWHULQJDQ
XQLQWHOOLJLEOHDSRORJ\,QWHUHVWLQJKHUHPDUNHGWR'RUVWKDW3ULPLWLYLVWV
VWLOOZDQWWREHSURWHFWHGIURPWKHZLOGE\WKHGRPHVWLFDWHG
:HOORIFRXUVH7KLVIHOORZLVELJ

1RWVHQWLPHQWDODERXWWKHQDWXUDOVWDWH":HZHUHRQFHMXVWDQRWKHUW\SH
RIODUJHPDPPDORQVRPHP\WKLFDO(DUWK
0\WKLFDO",GRQWZRUNLQWKDWDUHDRISUHKLVWRU\EXWPRVWKLVWRULDQV
WKLQNWKHUHZDVVXFKDSODFH
6XUHEXWHDUWKMXVWPHDQVGLUWLQWKHROGHVWODQJXDJHVFRUUHFW"
:HOOZHKDGWRFRPHIURPVRPHZKHUH6KHWKRXJKWDPRPHQWWKHQ
DOORZHGVORZO\,WKLQNWKDWQDWXUDOVWDWHPLJKWEHDSOHDVDQWSODFHWR
YLVLWEXW
,ZDQWWRWU\WKHSDQV
:KDW"$QLPPHUVLRQ"+HUH\HEURZVOLIWHGLQPLOGDODUP
$VORQJDVZHUHKHUHZK\QRW"
,GRQWZHOO,OOWKLQNDERXWLW
<RXFDQEDLORXWDWDQ\WLPHWKH\VD\6KHQRGGHGSXUVHGKHUOLSV
8P
:HOOIHHODWKRPHWKHZD\SDQVGR
<RXEHOLHYHHYHU\WKLQJ\RXUHDGLQDEURFKXUH"
,GLGVRPHUHVHDUFK,WVDZHOOGHYHORSHGWHFK+HUOLSVKDGD
VNHSWLFDOWLOW8P
+HNQHZE\QRZEHWWHUWKDQWRSUHVVKHU/HWWLPHGRKLVZRUN7KH
FDQLQHTXLWHODUJHDQG DOHUWVQXIIOHGDWKLVKDQGDQGVOXUUHG*RRRG
QDDDJKWVXXXU+HVWURNHGLW,QLWVH\HVKHVDZDNLQVKLSDQLQVWDQW
UDSSRUWWKDWKHGLGQRWQHHGWRWKLQNDERXW)RURQHZKRGZHOOHGLQKLVKHDG
VRPXFKWKLVZDVDZHOFRPHUXERIUHDOLW\
6LJQLILFDQW HYLGHQFHKHWKRXJKW:HKDYHDGHHSSDVWWRJHWKHU3HUKDSV
WKDWZDVZK\KHZDQWHGWRLPPHUVHLQDSDQ7RJRIDUEDFNEH\RQGWKHYH[LQJ
VWDWHRIEHLQJKXPDQ


:HUHFHUWDLQO\UHODWHG\HV([SHUW6SHFLDOLVW9DGGRVDLG+HZDVD
ELJPDQWDQQHGDQGPXVFXODUDQGFDVXDOO\FRQILGHQW+HZDVDVDIDULJXLGHDQG
LPPHUVLRQVSHFLDOLVWZLWKDELRORJ\EDFNJURXQG+HGLGUHVHDUFKXVLQJ
LPPHUVLRQWHFKQLTXHVEXWNHHSLQJWKHVWDWLRQJRLQJVRDNHGXSPRVWRIKLV
WLPHKHVDLG
+DULORRNHGVNHSWLFDO<RXWKLQNSDQVZHUHZLWKXVEDFNRQDQ(DUWK"
6XUH+DGWREH
7KH\FRXOGQRWKDYHDULVHQIURPJHQHWLFWLQNHULQJZLWKRXURZQNLQG"
'RXEWIXO*HQHWLFLQYHQWRU\VKRZVWKDWWKH\FRPHIURPDVPDOOVWDEOH
SUREDEO\D]RRVHWXSKHUH2UHOVHDQDFFLGHQWDOFUDVK
'RUVDVNHG,VWKHUHDQ\FKDQFHWKLVZRUOGFRXOGKDYHEHHQWKHRULJLQDO
(DUWK"
9DGGRFKXFNOHG1RIRVVLOUHFRUGQRUXLQV$Q\ZD\WKHORFDOIDXQDDQG
IORUDKDYHDIXQQ\NH\SDWWHUQLQWKHLUJHQHWLFKHOL[DELWGLIIHUHQWIURPRXU
'1$([WUDPHWK\OJURXSRQWKHSXULQHULQJV:HFDQOLYHKHUHHDWWKHIRRG
EXWQHLWKHUZHQRUWKHSDQVDUHQDWLYH
9DGGRPDGHDJRRGFDVH3DQVFHUWDLQO\ORRNHGTXDVLKXPDQ$QFLHQW
UHFRUGVUHIHUUHGWRDFODVVLILFDWLRQWKDWZDVDOO3DQWURJORG\WHVZKDWHYHU
WKDWPHDQWLQDORQJORVWWRQJXH7KH\KDGKDQGVZLWKWKXPEVWKHVDPHQXPEHU
RIWHHWKDVKXPDQVQRWDLOV
9DGGRZDYHGDELJKDQGDWWKHODQGVFDSHEHORZWKHVWDWLRQ7KH\ZHUH
GXPSHGKHUHDORQJZLWKSOHQW\RIRWKHUUHODWHGVSHFLHVRQWRSRIDELRVSKHUH
WKDWVXSSRUWHGWKHXVXDOJUDVVHVDQGWUHHVYHU\OLWWOHPRUH
+RZORQJDJR"'RUVDVNHG
2YHUWKLUWHHQWKRXVDQG\HDUVWKDWVIRUVXUH
%HIRUH7UDQWRUVFRQVROLGDWLRQ%XWRWKHUSODQHWVGRQWKDYHSDQV
'RUVSHUVLVWHG
9DGGRQRGGHG,JXHVVLQ WKHHDUO\(PSLUHGD\VQRERG\WKRXJKWWKH\ZHUH

XVHIXO
$UHWKH\"+DULDVNHG
1RWWKDW,FDQWHOO9DGGRVKUXJJHG:HKDYHQWWULHGWUDLQLQJWKHP
PXFKEH\RQGUHVHDUFKSXUSRVHV5HPHPEHUWKH\UHVXSSRVHGWREHNHSWZLOG
7KHRULJLQDO(PSHURUV%RRQVWLSXODWHGWKDW
7HOOPHDERXW\RXUUHVHDUFK+DULVDLG,QKLVH[SHULHQFHQR
VFLHQWLVWHYHUSDVVHGXSDFKDQFHWRVLQJKLVRZQVRQJ+HZDVULJKW
7KH\KDGWDNHQKXPDQ'1$DQGSDQ'1$9DGGRVDLGZD[LQJRQ
HQWKXVLDVWLFDOO\WKHQXQ]LSSHGWKHGRXEOHKHOL[VWUDQGVLQERWK/LQNLQJRQH
KXPDQVWUDQGZLWKDSDQVWUDQGPDGHDK\EULG
:KHUHWKHVWUDQGVFRPSOHPHQWHGWKHWZRWKHQWLJKWO\ERXQGLQDSDUWLDO
QHZGRXEOHKHOL[:KHUHWKH\GLIIHUHGERQGLQJEHWZHHQWKHVWUDQGVZDVZHDN
LQWHUPLWWHQW ZLWKZKROHVHFWLRQVIODSSLQJIUHH
7KHQWKH\VSXQWKHZDWHU\VROXWLRQVLQDFHQWULIXJHVRWKHZHDN
VHFWLRQVULSSHGDSDUW&ORVHO\OLQNHG'1$ZDVSHUFHQWRIWKHWRWDO3DQV
ZHUHVWDUWOLQJO\OLNHKXPDQV/HVVWKDQWZRSHUFHQWGLIIHUHQFHDERXWWKHVDPH
WKDWVHSDUDWHGPHQDQGZRPHQ\HWWKH\OLYHGLQIRUHVWVDQGLQYHQWHGQRWKLQJ
7KHW\SLFDOGLIIHUHQFHEHWZHHQLQGLYLGXDOSHRSOHV'1$ZDVDWHQWKRID
SHUFHQWDJHSRLQW9DGGRVDLG5RXJKO\WKHQSDQVZHUHWZHQW\WLPHVPRUH
GLIIHUHQWIURPKXPDQVWKDQSDUWLFXODUSHRSOHGLIIHUHGDPRQJWKHPVHOYHV
JHQHWLFDOO\
%XWJHQHVZHUHOLNHOHYHUVVXSSRUWLQJYDVWZHLJKWVE\SLYRWLQJDERXWD
VPDOOIXOFUXP
6R\RXWKLQNWKH\FDPHEHIRUHXV"'RUVZDVLPSUHVVHG2Q(DUWK"
9DGGRQRGGHGYLJRURXVO\7KH\PXVWKDYHEHHQUHODWHGEXWZHGRQWFRPH
IURPWKHP:HSDUWHGFRPSDQ\JHQHWLFDOO\VL[PLOOLRQ\HDUVDJR
$QGGRWKH\WKLQNOLNHXV"+DULDVNHG
%HVWZD\WRWHOOLVDQLPPHUVLRQ9DGGRVDLG9HU\EHVWZD\
+HVPLOHGLQYLWLQJO\DQG+DULZRQGHUHGLI9DGGRJRWDFRPPLVVLRQRQ
LPPHUVLRQV+LVVDOHVSLWFKZDVVXEWOHVKDSHGIRUDQDFDGHPLFVLQWHUHVWEXW
VWLOODVDOHVSLWFK
9DGGRKDGDOUHDG\PDGHDYDLODEOHWR+DULWKHYDVWVWRUHVRIGDWDRQSDQ
PRYHPHQWVSRSXODWLRQG\QDPLFVDQGEHKDYLRUV,WZDVDULFKVRXUFHPLOOHQQLD
ROG:LWKVRPHPRGHOLQJKHUHPLJKWEHIHUWLOHJURXQGIRUDVLPSOHGHVFULSWLRQ
RISDQVDVSURWRKXPDQVXVLQJDWUXQFDWHGYHUVLRQRISV\FKRKLVWRU\
'HVFULELQJWKHOLIHKLVWRU\RIDVSHFLHVPDWKHPDWLFDOO\LVRQHWKLQJ
'RUVVDLG%XWOLYLQJLQLW
&RPHQRZ+DULVDLG(YHQWKRXJKKHNQHZWKHHQWLUH([FXUVLRQ6WDWLRQ
ZDVJHDUHGWRVHOOWKHJXHVWVVDIDULVDQGLPPHUVLRQVKHZDVLQWULJXHG,
QHHGDFKDQJH\RXVDLG*HWRXWRIVWXII\ROG7UDQWRU\RXVDLG
9DGGRVPLOHGZDUPO\,WVFRPSOHWHO\VDIH
'RUVVPLOHGDW+DULWROHUDQWO\%HWZHHQSHRSOHORQJPDUULHGWKHUHLVD
GLSORPDF\RIWKHH\HV2KDOOULJKW


+HVSHQWPRUQLQJVVWXG\LQJWKHSDQGDWDEDQNV7KHPDWKHPDWLFLDQLQKLP
SRQGHUHGKRZWRUHSUHVHQWWKHLUG\QDPLFVZLWKDWULPPHGGRZQSV\FKRKLVWRU\
7KHPDUEOHRIIDWHUDWWOLQJGRZQDFUDFNHGVORSH6RPDQ\SDWKVYDULDEOHV
7RJHWDOOWKLVKHKDGWRNRZWRZWRWKHVWDWLRQFKLHI$ZRPDQQDPHG
<DNDQLVKHVHHPHGFRUGLDOEXWGLVSOD\HGDODUJHSRUWUDLWRIWKH$FDGHPLF
3RWHQWDWHXSRQKHURIILFHZDOO+DULPHQWLRQHGLWDQG<DNDQLJXVKHGRQDERXW
KHUPHQWRUZKRKDGKHOSHGKHUUXQDSULPDWHVWXGLHVFHQWHURQDYHUGDQW
SODQHWVRPHGHFDGHVEHIRUH
6KHZLOOEHDUZDWFKLQJ'RUVVDLG
<RXGRQWWKLQNWKH3RWHQWDWHZRXOG
7KHILUVWDVVDVVLQDWLRQDWWHPSWUHPHPEHUWKHWDE",OHDUQHGIURPWKH

,PSHULDOVWKDWVRPHWHFKQLFDODVSHFWVRILWSRLQWWRDQDFDGHPLFODERUDWRU\
+DULIURZQHG6XUHO\P\RZQIDFWLRQZRXOGQRWRSSRVH
6KHLVDVUXWKOHVVDV/DPXUNEXWPRUHVXEWOH
0\\RXDUHVXVSLFLRXV
,PXVWEH
,QWKHDIWHUQRRQVWKH\WRRNWUHNV'RUVGLGQRWOLNHWKHGXVWDQGKHDW
DQGWKH\VDZIHZDQLPDOV:KDWVHOIUHVSHFWLQJEHDVWZRXOGZDQWWREHVHHQ
ZLWKWKHVHRYHUGUHVVHG3ULPLWLYLVWV"VKHVDLG
+HOLNHGWKHDWPRVSKHUHRIWKLVZRUOGDQGUHOD[HGLQWRLWEXWKLVPLQG
NHSWRQZRUNLQJ+HWKRXJKWDERXWWKLVDVKHVWRRGRQWKHVZHHSLQJYHUDQGDK
GULQNLQJSXQJHQWIUXLWMXLFHDVKHZDWFKHGDVXQVHW'RUVVWRRGEHVLGHKLP
VLOHQWO\
3ODQHWVZHUHHQHUJ\IXQQHOVKHWKRXJKW$WWKHERWWRPRIWKHLU
JUDYLWDWLRQDOZHOOVSODQWVFDSWXUHGEDUHO\DWHQWKRIDSHUFHQWRIWKH
VXQOLJKWWKDWIHOORQDZRUOGVVXUIDFH7KH\EXLOWRUJDQLFPROHFXOHVZLWKD
VWDUVHQHUJ\,QWXUQSODQWVZHUHSUH\IRUDQLPDOVZKRFRXOGKDUYHVW
URXJKO\DWHQWKRIWKHSODQWVVWRUHGHQHUJ\*UD]HUVZHUHWKHPVHOYHVSUH\WR
PHDWHDWHUVZKRFRXOGXVHDERXWDWHQWKRIWKHIOHVKVWRUHGHQHUJ\6RKH
HVWLPDWHGRQO\DERXWRQHSDUWLQDKXQGUHGWKRXVDQGRIWKHODQFLQJVXQOLJKW
HQHUJ\ZRXQGXS LQWKHSUHGDWRUV
:DVWHIXO<HWQRZKHUHLQWKHZKROH*DOD[\KDGDPRUHHIILFLHQWHQJLQH
HYROYHG:K\QRW"
3UHGDWRUVZHUHLQYDULDEO\PRUHLQWHOOLJHQWWKDQWKHLUSUH\DQGWKH\VDW
DWRSDS\UDPLGRIYHU\VWHHSVORSHV2PQLYRUHVKDGDVLPLODUEDODQFLQJDFW
2XWRIWKDWUXJJHGODQGVFDSHKDGFRPHKXPDQLW\
7KDWIDFWKDGWRPDWWHUJUHDWO\LQDQ\SV\FKRKLVWRU\7KHSDQVWKHQ
ZHUHHVVHQWLDOWRILQGLQJWKHDQFLHQWNH\VWRWKHKXPDQSV\FKH
'RUVVDLG,KRSHLPPHUVLRQLVQWZHOOVRKRWDQGVWLFN\
5HPHPEHU\RXOOVHHWKHZRUOGWKURXJKGLIIHUHQWH\HV
-XVWVR,FDQFRPHEDFNZKHQHYHU,ZDQWDQGKDYHDQLFHKRWEDWK

&RPSDUWPHQWV"'RUVVKLHGEDFN7KH\ORRNPRUHOLNHFDVNHWV
7KH\KDYHWREHVQXJPDGDP
([6SHF9DGGRVPLOHGDPLDEO\ZKLFK+DULVHQVHGSUREDEO\PHDQWKH
ZDVQWIHHOLQJDPLDEOHDWDOO7KHLUFRQYHUVDWLRQKDGEHHQIULHQGO\WKHVWDII
KHUHZDVUHVSHFWIXORIWKHQRWHG2U6HOGRQEXWDIWHUDOOEDVLFDOO\KHDQG
'RUVZHUHMXVWPRUHWRXULVWV3D\LQJIRUDELWRISULPLWLYHIXQDOOFRXFKHG
LQSURSHUVFKRODUO\WHUPVEXWWRXULVWV
<RXUHNHSWLQIL[HGVWDWXVDOOERG\V\VWHPVUXQQLQJVORZEXWQRUPDO
WKH([6SHFVDLGSRSSLQJRXWWKHSDGGHGQHWZRUNVIRUWKHLULQVSHFWLRQ+HUDQ
WKURXJKWKHFRQWUROVHPHUJHQF\SURFHGXUHVVDIHJXDUGV
/RRNVFRPIRUWDEOHHQRXJK'RUVREVHUYHGJUXGJLQJO\
&RPHRQ+DULFKLGHG<RXSURPLVHGZHZRXOGGRLW
<RXOOEHPHVKHGLQWRRXUV\VWHPVDWDOOWLPHV9DGGRVDLG
(YHQ\RXUGDWDOLEUDU\"+DULDVNHG
6XUHWKLQJ
7KHWHDPRI([6SHFVERRWHGWKHPLQWRWKHVWDVLVFRPSDUWPHQWVZLWKGHIW
VXUHHIILFLHQF\7DEVSUHVVHUVPDJQHWLFSLFNXSVZHUHSODWHGRQWRKLVVNXOO
WRSLFNXSWKRXJKWVGLUHFWO\7KHYHU\ODWHVWWHFK
5HDG\")HHOLQJJRRG"9DGGRDVNHGZLWKKLVSURIHVVLRQDOVPLOH
+DULZDVQRWIHHOLQJJRRG DVRSSRVHGWRIHHOLQJZHOO DQGKHUHDOL]HG
SDUWRILWZDVWKLV([6SHF+HKDGDOZD\VGLVWUXVWHGEODQGDVVXUHGSHRSOH
%RWK9DGGRDQGWKHVHFXULW\FKLHI<DNDQLVHHPHGWREHXQUHPDUNDEOH*UH\V
%XW'RUVZDULQHVVKDGUXEEHGRII6RPHWKLQJDERXWWKHPERWKHUHGKLPEXWKH
FRXOGQRWVD\ZK\
2KZHOO'RUVZDVSUREDEO\ULJKW+HQHHGHGDYDFDWLRQ:KDWEHWWHUZD\
WRJHWRXWRI\RXUVHOI"

*RRG\HV5HDG\\HV
7KHVXVSHQVLRQWHFKZDVDQFLHQWDQGUHOLDEOH,WVXSSUHVVHG
QHXURPXVFXODUUHVSRQVHVVRWKHFXVWRPHUOD\GRUPDQWRQO\KLVPLQGHQJDJHG
ZLWKWKHSDQ
0DJQHWLFZHEVFDSSHGRYHUKLVFHUHEUXP7KURXJKHOHFWURPDJQHWLF
LQGXFWDQFHWKH\LQWHUZRYHLQWROD\HUVRIWKHEUDLQ7KH\URXWHGVLJQDOVDORQJ
WLQ\WKUHDGSDWKVVXSSUHVVLQJPDQ\EUDLQIXQFWLRQVDQGEORFNLQJSK\VLRORJLFDO
SURFHVVHV
$OOWKLVVRWKDWWKHPDVVLYHO\SDUDOOHOFLUFXLWU\RIWKHEUDLQFRXOGEH
LQGXFWLYHO\OLQNHGRXWWKRXJKWE\WKRXJKW7KHQLWZDVWUDQVPLWWHGWRFKLSV
HPEHGGHGLQWKHSDQVXEMHFW,PPHUVLRQ
7KHWHFKQRORJ\KDGUDPLILHGWKURXJKRXWWKH(PSLUHTXLWHIDPRXVO\7KH
DELOLW\WRGLVWDQWO\PDQDJHPLQGVKDGP\ULDGXVHV7KHVXVSHQVLRQWHFK
KRZHYHUIRXQGLWVRZQRGGDSSOLFDWLRQV
2QVRPHZRUOGVDQGLQ FHUWDLQ7UDQWRULDQFODVVHVZRPHQZHUHZHGGHG
WKHQVXVSHQGHGIRUDOOEXWDIHZKRXUVRIWKHGD\7KHLUZHDOWK\KXVEDQGV
DZRNHWKHPIURPIUHH]HIUDPHVWDWHVRQO\IRUVRFLDODQGVH[XDOSXUSRVHV2YHU
DKDOIFHQWXU\WKHZLYHVH[SHULHQFHGDKHDG\ZKLUOZLQGRISODFHVIULHQGV
SDUWLHVYDFDWLRQVSDVVLRQDWHKRXUVEXWWKHLUWRWDODFFXPXODWHGWLPHZDV
RQO\DIHZ\HDUV7KHLUKXVEDQGVGLHGLQZKDWVHHPHGWRWKHZLYHVOLNHVKRUW
RUGHULQGHHGOHDYLQJDZHDOWK\ZLGRZRISHUKDSVWKLUW\6XFKZRPHQZHUH
KLJKO\VRXJKWDQGQRWRQO\IRUWKHLUPRQH\7KH\ZHUHXQLTXHO\VRSKLVWLFDWHG
VHDVRQHGE\DORQJPDUULDJH2IWHQWKHVHZLGRZVUHWXUQHGWKHIDYRUZHGGLQJ
KXVEDQGVZKRPWKH\UHYLYHGIRUVLPLODUXVHV
$OOWKLV+DULKDGWDNHQLQZLWKWKHVRSKLVWLFDWHGYHQHHUKHKDG
FXOWLYDWHGRQ7UDQWRU6RKHWKRXJKWKLVLPPHUVLRQZRXOGEHFRPIRUWDEOH
LQWHUHVWLQJWKHVWXIIRIVWLPSDUW\WDON
+HKDGWKRXJKWWKDWKHZRXOGLQVRPHVHQVHYLVLWDQRWKHUVLPSOHUPLQG
+HGLGQRWH[SHFWWREHVZDOORZHGZKROH


$JRRGGD\3OHQW\RIIDWJUXEVWRHDWLQDELJPRLVWORJ'LJWKHPRXW
ZLWKP\QDLOVIUHVKWDQJ\VKDUSFUXQFK\
%LJJHVWKHVKRYHVPHDVLGH6FRRSVRXWSOHQW\ULFKJUXEV*UXQWV
*ORZHUV
0\EHOO\UXPEOHV,EDFNRIIDQGH\H%LJJHVW+HVJRWSLQFKHGXSIDFH
VR, NQRZQRWWRIRROZLWKKLP
,ZDONDZD\,VTXDWGRZQ*HWVRPHSLFNLQJIURPDIHP6KHILQGVVRPH
IOHDVFUDFNVWKHPLQKHUWHHWK
%LJJHVWUROOVWKHORJDURXQGVRPHWRNQRFNDIHZJUXEVORRVHILQLVKHV
XS+HVVWURQJ)HUQVZDWFKKLP2YHUE\WKHWUHHVDEXQFKRIIHPVFKDWWHU
VXFNWKHLUWHHWK(YHU\ERG\VVOHHS\QRZLQHDUO\DIWHUQRRQO\LQJLQWKH
VKDGH%LJJHVWWKRXJKKHZDYHVDWPHDQG+XQNHUDQGRIIZHJR
3DWURO6WUXWWDOOVWHSRXWSURXG,OLNHLWILQH%HWWHUWKDQKXPSLQJ
HYHQ
'RZQSDVWWKHFUHHNDQGDORQJWRZKHUHWKHKRRIVPHOOVDUH7KDWVWKH
VKDOORZVSRW:HFURVVDQGJRLQWRWKHWUHHVVQLIIVQLIILQJDQGWKHUHDUHWZR
6WUDQJHUV
7KH\GRQWVHHXV\HW:HPRYHVPRRWKTXLHW%LJJHVWSLFNVXSDEUDQFK
DQGZHGRWRR+XQNHULVVQLIILQJWRVHHZKRWKHVH6WUDQJHUVDUHDQGKH
SRLQWVRIIWRWKHKLOO-XVWOLNH,WKRXJKWWKH\UH+LOOLHV7KHZRUVW6PHOO
EDG
+LOOLHVFRPHRQWRRXUWXUI0DNHWURXEOH:HPDNHLWEDFN
:HVSUHDGRXW%LJJHVWKHJUXQWVDQGWKH\KHDUKLP,PDOUHDG\ PRYLQJ
EUDQFKKHOGXS,FDQUXQSUHWW\IDUZLWKRXWJRLQJDOOIRXUV7KH6WUDQJHUV
FU\RXWELJH\HG:HJRIDVWDQGWKHQZHUHRQWKHP

7KH\KDYHQREUDQFKHV:HKLWWKHPDQGNLFNDQGWKH\JUDEDWXV7KH\
DUHWDOODQGTXLFN%LJJHVWVODPVRQHWRWKHJURXQG,KLWWKDWRQHVR%LJJHVW
NQRZVUHDOZHOO,PZLWKKLP+DPPHUKDUG,GR7KHQ,JRTXLFNWRKHOS
+XQNHU
+LV6WUDQJHUKDVWDNHQKLVEUDQFKDZD\,FOXEWKH6WUDQJHU+HVSUDZOV
,ZKDFNKLPJRRGDQG+XQNHUMXPSVRQKLPDQGLWLVZRQGHUIXO
7KH6WUDQJHUWULHVWRJHWXSDQG,NLFNKLPVROLG+XQNHUJUDEVEDFNKLV
EUDQFKDQGKLWVDJDLQDQGDJDLQZLWKPHKHOSLQJKDUG
%LJJHVWKLV6WUDQJHUJHWVXSDQGVWDUWVWRUXQ%LJJHVWZKDFNVKLVDVV
ZLWKWKHEUDQFKURDULQJDQGODXJKLQJ
0H,JRWP\VNLOO6SHFLDO,SLFNXSURFNV,PWKHEHVWWKURZHU
EHWWHUWKDQ%LJJHVWHYHQ
5RFNVDUHIRU6WUDQJHUV0\EXGGLHVWKHP,OOVFUDSZLWKEXWQHYHUXVH
URFNV6WUDQJHUVWKRXJKWKH\GHVHUYHWRJHWURFNVLQWKHIDFH,ORYHWR
EXVWD6WUDQJHUWKDWZD\
,WKURZRQHFOHDQDQGVPRRWK&DWFKWKH6WUDQJHURQWKHOHJ+H
VWXPEOHV,VPDFNKLPJRRGZLWKDVKDUSHGJHGURFNLQWKHEDFN
+HUXQVIDVWWKHQ,FDQVHHKHVEOHHGLQJ%LJUHGGURSVLQWKHGXVW
%LJJHVWODXJKVDQGVODSVPHDQG,NQRZ,PLQJRRGZLWKKLP
+XQNHULVFOXEELQJKLV6WUDQJHU%LJJHVWWDNHVP\FOXEDQGMRLQVLQ7KH
EORRGDOORYHUWKH6WUDQJHUVLQJVZDUPLQP\QRVHDQG,MXUQSXSDQGGRZQRQ
KLP:HNHHSDWLWOLNHWKDWDORQJWLPH1RWZRUULHGDERXWWKHRWKHU6WUDQJHU
FRUQLQJEDFN6WUDQJHUVDUH EUDYHVRPHWLPHVEXWWKH\NQRZZKHQWKH\KDYH
ORVW
7KH6WUDQJHUVWRSVPRYLQJ,JLYHKLPRQHPRUHNLFN
1RUHDFWLRQ'HDGPD\EH
:HVFUHDPDQGGDQFHDQGKROOHURXWRXUMR\


+DULVKRRNKLVKHDGWRFOHDULW7KDWKHOSHGDOLWWOH
<RXZHUHWKDWELJRQH"'RUVDVNHG,ZDVWKHIHPDOHRYHUE\WKH
WUHHV
6RUU\,FRXOGQWWHOO
,WZDVGLIIHUHQWZDVQWLW"
+HODXJKHGGU\O\0XUGHUXVXDOO\LV
:KHQ\RXZHQWRIIZLWKWKHZHOOOHDGHU
0\SDQWKLQNVRIKLPDV%LJJHVW:HNLOOHGDQRWKHUSDQ
7KH\ZHUHLQWKHSOXVKUHFHSWLRQURRPRIWKHLPPHUVLRQIDFLOLW\+DUL
VWRRGDQGIHOWWKHZRUOGWLOWDOLWWOHDQGWKHQULJKWLWVHOI,WKLQN,OO
VWLFNWRKLVWRULFDOUHVHDUFKIRUDZKLOH
'RUVVPLOHGVKHHSLVKO\,,UDWKHUOLNHGLW
+HWKRXJKWDPRPHQWEOLQNHG6RGLG,KHVDLGVXUSULVLQJKLPVHOI
1RWWKHPXUGHU
1RRIFRXUVHQRW%XWWKHIHHO
6KHJULQQHG&DQWJHWWKDWRQ7UDQWRU3URIHVVRU

+HVSHQWWZRGD\VFRDVWLQJWKURXJKFRROODWWLFHVRIGDWDLQWKH
IRUPLGDEOHVWDWLRQOLEUDU\,WZDVZHOOHTXLSSHGDQGDOORZHGLQWHUIDFHVZLWK
VHYHUDOVHQVHV+HSDWUROOHGWKURXJKFRROGLJLWDOODE\ULQWKV
6RPHGDWDZDVHQFUXVWHGZLWKDJHTXLWHOLWHUDOO\,QWKHYHFWRUVSDFHV
SRUWUD\HGRQKXJHVFUHHQVWKHUHVHDUFKGDWDRIPLOOHQQLDDJRZHUHFRYHUHG
ZLWKWKLFNEXON\SURWRFROVDQGVFDEVRIVHFXULW\SUHFDXWLRQV$OOZHUHHDVLO\
EURNHQRUDYHUWHGRIFRXUVHE\SUHVHQWPHWKRGV%XWWKHFKXQN\DEVWUDFWV
UHSRUWVVXPPDULHVDQGFUXGHO\SURFHVVHGVWDWLVWLFVVWLOOUHVLVWHGHDV\
LQWHUSUHWDWLRQ2FFDVLRQDOO\VRPHIDFHWVRISDQEHKDYLRUZHUHFDUHIXOO\KLGGHQ
DZD\LQDSSHQGLFHVDQGVLGHEDUQRWHVDVWKRXJKWKHELRORJLVWVLQWKHORQHO\

RXWSRVWZHUHHPEDUUDVVHGE\LW6RPHZDVHPEDUUDVVLQJPDWLQJEHKDYLRU
HVSHFLDOO\+RZFRXOGKHXVHWKLV"
+HQDYLJDWHGWKURXJKWKH'PD]HDQGFREEOHGWRJHWKHUKLVLGHDV&RXOG
KHIROORZDVWUDWHJ\RIDQDORJ\"
3DQVVKDUHGQHDUO\DOOWKHLUJHQHVZLWKKXPDQVVRSDQG\QDPLFVVKRXOG
EHDVLPSOHUYHUVLRQRIKXPDQG\QDPLFV&RXOGKHWKHQDQDO\]HSDQWURRS
LQWHUDFWLRQVDVDUHGXFHGFDVHRISV\FKRKLVWRU\"
6HFXULW\&KLHI<DNDQLRSHQHGFRQILGHQWLDOILOHVZKLFKLPSOLHGWKDWSDQV
KDGEHHQJHQHWLFDOO\PRGLILHGDERXWWHQWKRXVDQG\HDUVEHIRUH7RZKDWHQG
+DULFRXOGQRWWHOO7KHUHZHUHRWKHUDOWHUHGFUHDWXUHVUDERRQV
SDUWLFXODUO\<DNDQLWRRNVXFKDQLQWHUHVWLQKLVZRUNWKDWKHEHFDPH
VXVSLFLRXVVKHZDVNHHSLQJDQH\HRQKLPIRUWKH3RWHQWDWH
$WVXQVHWRIWKHVHFRQGGD\KHVDWZLWK'RUVZDWFKLQJEORRGUHGVKDIWV
VSLNHWKURXJKRUDQJHWLQJHGFORXGV7KLVZRUOGZDVJDXG\EH\RQGJRRGWDVWH
DQGKHOLNHGLW7KHIRRGZDVWDQJ\WRR+LVVWRPDFKUXPEOHGDQWLFLSDWLQJ
GLQQHU
+HUHPDUNHGWR'RUV,WVWHPSWLQJXVLQJSDQVWREXLOGDVRUWRIWR\
PRGHORISV\FKRKLVWRU\
%XW\RXKDYHGRXEWV
7KH\UHOLNHXVEXWWKH\KDYHZHOOXK
%DVHDQLPDOLVWLFZD\V"6KHVPLUNHGWKHQNLVVHGKLP0\SUXGLVK
+DUL
:HKDYHRXUVKDUHRIEHDVWO\EHKDYLRUV,NQRZ%XWZHUHDORW
VPDUWHUWRR
+HUH\HOLGVGLSSHGLQDPDQQHUKHNQHZE\QRZVXJJHVWHGSROLWHGRXEW
7KH\OLYHLQWHQVHO\\RXOOKDYHWRJLYHWKHPWKDW
0D\EHZHUHVPDUWHUWKDQZHQHHGWREHDQ\ZD\"
:KDW"7KLVVXUSULVHGKHU
,YHEHHQUHDGLQJXSRQHYROXWLRQ1RWDIURQWUDQNILHOGDQ\PRUH
HYHU\ERG\WKLQNVZHXQGHUVWDQGLW
$QGLQDJDOD[\ILOOHGZLWKKXPDQVDQGOLWWOHHOVHWKHUHLVQWPXFK
IUHVKPDWHULDO
+HKDGQRWWKRXJKWRILWWKDWZD\EHIRUHEXWVKHZDVULJKW%LRORJ\ZDV
DEDFNZDWHUVFLHQFH$OOWKHDFDGHPLFVRSKLVWLFDWHVZHUHSXUVXLQJVRPHWKLQJ
FDOOHGLQWHJUDWLYHVRFLRPHWULFV
+HZHQWRQOD\LQJRXWKLVWKRXJKWV3ODLQO\WKHKXPDQEUDLQZDVDQ
HYROXWLRQDU\RYHUVKRRW%UDLQVZHUHIDUPRUHFDSDEOHWKDQDFRPSHWHQWKXQWHU
JDWKHUHUQHHGHG7RJHWWKHEHWWHURIDQLPDOVLWZRXOGKDYHEHHQHQRXJKWR
PDVWHUILUHDQGVLPSOHVWRQHWRROV6XFKWDOHQWVDORQHZRXOGKDYHPDGHSHRSOH
WKHORUGVRIFUHDWLRQUHPRYLQJVHOHFWLRQSUHVVXUHWRFKDQJH,QVWHDGDOO
HYLGHQFHIURPWKHEUDLQLWVHOIVDLGWKDWFKDQJHDFFHOHUDWHG7KHKXPDQ
FHUHEUDOFRUWH[DGGHGPDVVVWDFNLQJQHZFLUFXLWU\DWRSROGHUZLULQJ7KDW
PDVVVSUHDGRYHUWKHOHVVHUDUHDVOLNHDWKLFNQHZVNLQ6RVDLGWKHDQFLHQW
VWXGLHVWKHLUGDWDIURPPXVHXPVORQJORVW
)URPWKLVFDPHPXVLFLDQVDQGHQJLQHHUVVDLQWVDQGVDYDQWVKH
ILQLVKHGZLWKDIORXULVK2QHRI'RUVEHVWSRLQWVZDVKHUZLOOLQJQHVVWRVLW
VWLOOZKLOHKHZD[HGSURIHVVRULO\ORQJZLQGHGHYHQRQYDFDWLRQ
$QGWKHSDQV\RXWKLQNDUHIURPEHIRUHWKDWWLPH"2QDQFLHQW(DUWK"
7KH\PXVWEH$QGDOOWKLVHYROXWLRQDU\VHOHFWLRQKDSSHQHGLQMXVWD
IHZPLOOLRQ\HDUV
'RUVQRGGHG/RRNDWLWIURPWKHZRPDQVSRLQWRIYLHZ,WKDSSHQHG
GHVSLWHSXWWLQJPRWKHUVLQGHVSHUDWHGDQJHULQFKLOGELUWK
8KKRZ"
)URPWKRVHKXJHEDE\KHDGV7KH\UHKDUGWRJHWRXW:HZRPHQDUHVWLOO
SD\LQJWKHSULFHIRU\RXUEUDLQVDQGIRURXUV
+HFKXFNOHG6KHDOZD\VKDGDVSHFLDOVSLQRQDVXEMHFWWKDWPDGHKLP
VHHLWIUHVK7KHQZK\ZDVLWVHOHFWHGIRUEDFNWKHQ"

'RUVVPLOHGHQLJPDWLFDOO\0D\EHPHQDQGZRPHQDOLNHIRXQGLQWHOOLJHQFH
VH[\LQHDFKRWKHU
5HDOO\"
+HUVO\VPLOH+RZDERXWXV"
+DYH\RXHYHUZDWFKHGYHU\PDQ\'VWDUV"7KH\GRQWIHDWXUHEUDLQVP\
GHDU
5HPHPEHUWKHDQLPDOVZHVDZLQWKH,PSHULDO=RR",WFRXOGEHWKDWIRU
HDUO\KXPDQVEUDLQVZHUHOLNHSHDFRFNWDLOVRUPRRVHKRUQVGLVSOD\LWHPVWR
DWWUDFWWKHIHPDOHV5XQDZD\VH[XDOVHOHFWLRQ
,VHHDQRYHUSOD\HGKDQGRIRWKHUZLVHSHUIHFWO\JRRGFDUGV+H
ODXJKHG6REHLQJVPDUWLVMXVWDEULJKWRUQDPHQW
:RUNVIRUPHVKHVDLGJLYLQJKLPDZLQN
+HZDWFKHGWKHVXQVHWWXUQWRJORZHULQJRPLQRXVFULPVRQRGGO\KDSS\
6KHHWVRIOLJKWZRUNHGDFURVVWKHVN\DPRQJFXULRXVOD\HUHGFORXGV8PPP
'RUVPXUPXUHG
<HV"
0D\EHWKLVLVDZD\WRXVHWKHUHVHDUFKWKH([6SHFVDUHGRLQJWRR
/HDUQZKRZHKXPDQVRQFHZHUHDQGWKHUHIRUHZKRZHDUH
,QWHOOHFWXDOO\LWVDMXPS,QVRFLDOZD\VWKRXJKWKHJDSFRXOGEH
OHVV
'RUVORRNHGVNHSWLFDO<RXWKLQNSDQVDUHRQO\DELWIXUWKHUEDFNLQD
VRFLDOVHQVH"
8PPP,ZRQGHULILQORJDULWKPLFWLPHZHPLJKWVFDOHIURPSDQVWRWKH
HDUO\(PSLUHDQGWKHQRQWRQRZ"
$ELJOHDS
0D\EH,FRXOGXVHWKDW9ROWDLUHVLPIURP6DUNDVDVFDOLQJSRLQWLQD
ORQJFXUYH
/RRNWRGRDQ\WKLQJ\RXOOQHHGPRUHH[SHULHQFHZLWKWKHP6KHH\HG
KLP<RXOLNHLPPHUVLRQGRQW\RX"
:HOO\HV,WVMXVW
:KDW"
7KDW([6SHF9DGGRKHNHHSVSXVKLQJLPPHUVLRQV
7KDWVKLVMRE
DQGKHNQHZZKR,ZDV
6R"6KHVSUHDGKHUKDQGVDQGVKUXJJHG
<RXUHQRUPDOO\WKHVXVSLFLRXVRQH:K\VKRXOGDQ([6SHFNQRZDQ
REVFXUHPDWKHPDWLFLDQ"
+HORRNHG\RXXS'DWDGXPSVRQLQFRPLQJJXHVWVDUHVWDQGDUG$QGDVD
)LUVW0LQLVWHUFDQGLGDWH\RXUHKDUGO\REVFXUH
,VXSSRVHVR6D\\RXUHVXSSRVHGWREHWKHHYHUYLJLODQWRQH+H
JULQQHG6KRXOGQW\RXEHHQFRXUDJLQJP\FDXWLRQ"
3DUDQRLDLVQWFDXWLRQ7LPHVSHQWRQQRQWKUHDWVVXEWUDFWVIURP
YLJLODQFH
%\WKHWLPHWKH\ZHQWLQIRUGLQQHUVKHKDGWDONHGKLPLQWRLW


+RWGD\LQWKHVXQ'XVWWLFNOHV0DNHVPHVQRUW
7KDW%LJJHVWKHZDONVE\JHWVUHVSHFWULJKWDZD\3OHQW\)HPVDQG
JX\VDOLNHWKH\VWLFNRXWWKHLUKDQGV
%LJJHVWWRXFKHVWKHPWDNLQJWLPHZLWKHDFKOHWWLQJWKHPNQRZKHLV
WKHUH7KHZRUOGLVDOOULJKW
,UHDFKRXWWRKLPWRR0DNHVPHIHHOJRRG,ZDQWWREHOLNH%LJJHVW
WREHELJEHDVELJDVKLPEHKLP
)HPVGRQWJLYHKLPDQ\WURXEOH+HZDQWVRQHVKHJRHV+XPSULJKW
DZD\+HV%LJJHVW
0RVWPDOHVWKH\GRQWJHWPXFKUHVSHFW)HPVGRQWZDQWWRGRZLWKWKHP

DVPXFKDVWKH\GRZLWK%LJJHVW7KHOLWWOHPDOHVWKH\KXIIDQGWKURZVDQG
DQGDOOWKDWEXWHYHU\ERG\NQRZVWKH\UHQRWJRLQJWREHPXFK1RFKDQFHWKH\
FRXOGHYHUEHOLNH%LJJHVW7KH\GRQWOLNHWKDWEXWWKH\DUHVWXFNZLWKLW
0H,PSUHWW\ELJ,JHWUHVSHFW6RPHDQ\ZD\
$OOWKHJX\VOLNHVWURNLQJ3HWWLQJ*URRPLQJ)HUQVJLYHLWWRWKHPDQG
WKH\JLYHLWEDFN
*X\VJHWPRUHWKRXJK$IWHULWWKH\UHQRWVRJUXII
,PVLWWLQJJHWWLQJJURRPHGDQGDOORIDVXGGHQ,VPHOOVRPHWKLQJ,
GRQWOLNHLW,MXPSXSFU\RXW%LJJHVWKHWDNHVQRWLFH6PHOOVLWWRR
6WUDQJHUV(YHU\ERG\VWDUWVKXJJLQJHDFKRWKHU6WURQJVPHOOSOHQW\RI
LW/RWVRI6WUDQJHUV7KHZLQGVD\VWKH\DUHQHDUJHWWLQJQHDUHU
7KH\FRPHUXQQLQJGRZQRQXVIURPWKHULGJH/RRNLQJIRUIHUQVORRNLQJ
IRUWURXEOH
,UXQIRUP\URFNV,DOZD\VKDYHVRPHKDQG\,IOLQJRQHDWWKHPPLVV
7KHQWKH\LQDPRQJXV,WVKDUGWRKLWWKHPWKH\JRVRIDVW
)RXU6WUDQJHUVWKH\JUDEWZRIHUQV'UDJWKHPDZD\
(YHU\ERG\KRZOLQJFU\LQJ'XVWHYHU\ZKHUH
,WKURZURFNV%LJJHVWOHDGVWKHJX\VDJDLQVWWKH6WUDQJHUV
7KH\WXUQDQGUXQRII-XVWOLNHWKDW*RWWKHWZRIHUQVWKRXJKDQG
WKDWVEDG
%LJJHVWPDG+HSXVKHVDURXQGVRPHRIWKHJX\VPDNHVQRLVH+HQRW
ORRNLQJVRJRRGQRZKHOHWWKH6WUDQJHUVLQ
7KRVH6WUDQJHUVEDG:HDOOKXQNHUGRZQJURRPHDFKRWKHUSHWPDNH
QLFHVRXQGV
%LJJHVWKHFRPHE\VODSVRPHRIWKHIHUQV+XPSVRPH0DNHVXUH
HYHU\ERG\NQRZKHVVWLOO%LJJHVW
+HGRQWVODSPH+HNQRZEHWWHUWKDQWRWU\,JURZODWKLPZKHQKH
FRPHFORVHDQGKHSUHWHQGQRWWRKHDU
0D\EHKHQRWVR%LJDQ\PRUH,PWKLQNLQJ


+HVWD\HGZLWKLWWKLVWLPH$IWHUWKHILUVWFULVLVZKHQWKH6WUDQJHU
SDQVFDPHUXQQLQJWKURXJKKHVDWDQGOHWKLPVHOIJHWJURRPHGIRUDORQJWLPH
,WUHDOO\GLGFDOPKLP
+LP":KRZDVKH"
7KLVWLPHKHFRXOGIXOO\VHQVHWKHSDQPLQG1RWEHORZKLPWKDWZDVD
PHWDSKRUEXWDURXQGKLP$VZDUPLQJVFDWWHUVKRWRIVHQVHVWKRXJKWV
IUDJPHQWVOLNHOHDYHVEORZLQJE\KLPLQDZLQG
$QGWKHZLQGZDVHPRWLRQ%OXVWHULQJJDOHVKRZOLQJDQGZKLSSLQJLQ
JXVWVUDLQLQJWKRXJKWVOLNHVRIWKDPPHUEORZV
7KHVHSDQVWKRXJKWSRRUO\LQWKHVHQVHWKDWKHFRXOGJHWRQO\VKDUGV
OLNHKXPDQPXVLQJVFKRSSHGE\DQHUYRXVHGLWRU%XWSDQVIHOWLQWHQVHO\
2IFRXUVHKHWKRXJKWDQGKHFRXOGWKLQNQHVWOHGLQWKHKDUGNHUQHORI
KLPVHOIZUDSSHGLQWKHSDQPLQG(PRWLRQVWROGLWZKDWWRGRZLWKRXW
WKLQNLQJ4XLFNUHDFWLRQVGHPDQGHGWKDW6WURQJIHHOLQJDPSOLILHGVXEWOHFXHV
LQWRVWURQJLPSHUDWLYHV%OXQWRUGHUVIURP0RWKHU(YROXWLRQ
+HVDZQRZWKDWWKHEHOLHIWKDWKLJKRUGHUPHQWDOH[SHULHQFHVOLNH
HPRWLRQZHUHXQLTXHWRSHRSOHZDVVLPSO\FRQFHLWHG7KHVHSDQVVKDUHGPXFK
RIWKHKXPDQZRUOGYLHZ$WKHRU\RISDQSV\FKRKLVWRU\FRXOGEHYDOXDEOH
+HJLQJHUO\VHSDUDWHGKLPVHOIIURPWKHGHQVHSUHVVLQJSDQPLQG+H
ZRQGHUHGLIWKHSDQNQHZKHZDVKHUH<HVLWGLGGLPO\
<HWWKLVGLGQRWERWKHUWKHSDQ+HLQWHJUDWHGLWLQWRKLVEOXUUHG
EOXQWZRUOG+DULZDVVRPHZKDWOLNHDQHPRWLRQMXVWRQHRI PDQ\IOXWWHULQJE\
DQGVWD\LQJDZKLOHWKHQZDIWLQJDZD\
&RXOGKHEHPRUHWKDQWKDW"+HWULHGJHWWLQJWKHSDQWROLIWLWVULJKW
DUPDQGLWZDVOLNHOHDG+HVWUXJJOHGIRUDZKLOHWKDWZD\ZLWKQRVXFFHVV

7KHQKHUHDOL]HGKLVHUURU+HFRXOGQRWRYHUSRZHUWKLVSDQQRWDVDNHUQHO
LQDPXFKODUJHUPLQG
+HWKRXJKWDERXWWKLVDVWKHSDQJURRPHGDIHPDOHSLFNLQJFDUHIXOO\
WKURXJKFRDUVHKDLU7KHVWUDQGVVPHOOHGJRRGWKHDLUZDVVZHHWWKHVXQ
VWURNHGKLPZLWKEODGHVRIJHQHURXVZDUPWK
(PRWLRQ3DQVGLGQWIROORZLQVWUXFWLRQVEHFDXVHWKDWVLPSO\OD\EH\RQG
WKHP7KH\FRXOGQRWXQGHUVWDQGGLUHFWLRQVLQWKHKXPDQVHQVH(PRWLRQVWKRVH
WKH\NQHZ+HKDGWREHDQHPRWLRQQRWDOLWWOHJHQHUDOJLYLQJRUGHUV
+HVDWIRUDZKLOHVLPSO\EHLQJ WKLVSDQ+HOHDUQHGRUUDWKHUKH
IHOW7KHWURRSJURRPHGDQGVFDYHQJHGIRRGPDOHVH\HLQJWKHSHULPHWHU
IHPDOHVNHHSLQJFORVHWRWKH\RXQJ$OD]\FDOPGHVFHQGHGRYHUKLPFDUU\LQJ
KLPHIIRUWOHVVO\WKURXJKZDUPPRPHQWVRIWKHGD\
1RWVLQFHER\KRRGKDGKHIHOWDQ\WKLQJOLNHWKLV$VORZJUDFHIXO
HDVLQJDVWKRXJKWKHUHZHUHQRWLPHDWDOORQO\VOLFHVRIHWHUQLW\
,QWKLVPRRGKHFRXOGFRQFHQWUDWHRQDVLPSOHPRYHPHQWUDLVLQJDQDUP
VFUDWFKLQJDQGFUHDWHWKHGHVLUHWRGRLW+LVSDQUHVSRQGHG 7RPDNHLW
KDSSHQKHKDGWRIHHOKLVZD\WRZDUGDJRDO
&DWFKLQJDVZHHWVFHQWRQWKHZLQG+DULWKRXJKWDERXWZKDWIRRGWKDW
PLJKWVLJQDO+LVSDQPHDQGHUHGXSZLQGVQLIIHGGLVFDUGHGWKHFOXHDV
XQLQWHUHVWLQJ+DULFRXOGQRZVPHOOWKHUHDVRQZK\IUXLWWUXHVZHHW\HV
EXWLQHGLEOHIRUDSDQ
*RRG+HZDVOHDUQLQJ$QGKHZDVLQWHJUDWLQJKLPVHOILQWRWKHGHHS
UHFHVVHVRIWKLVSDQPLQG
:DWFKLQJWKHWURRSKHGHFLGHGWRQDPHWKHSURPLQHQWSDQVWRNHHSWKHP
VWUDLJKW$JLOHWKHTXLFNRQH6KHHODKWKHVH[\RQH*UXEEHUWKHKXQJU\
RQH%XWZKDWZDVKLVRZQQDPH"+LVKHGXEEHG,SDQ1RWYHU\RULJLQDOEXW
WKDWZDVLWVPDLQFKDUDFWHULVWLF,DVSDQ
*UXEEHUIRXQGVRPHEXOEVKDSHGIUXLWDQGWKHRWKHUVGULIWHGRYHUWR
VFDYHQJH7KHKDUGIUXLWVPHOOHGD OLWWOHWRR\RXQJ KRZGLGKHNQRZWKDW" 
EXWVRPHDWHLWDQ\ZD\
$QGZKLFKRIWKHVHZDV'RUV"7KH\KDGDVNHGWREHLPPHUVHGLQWKHVDPH
WURRSVRRQHRIWKHVHKHIRUFHGKLPVHOIWRFRXQWWKRXJKVRPHKRZWKH
H[HUFLVHZDVOLNHPRYLQJKHDY\ZHLJKWVLQKLV PLQGWKHVHWZHQW\WZRZDVKHU
+RZFRXOGKHWHOO"+HDPEOHGRYHUWRVHYHUDOIHPDOHVZKRZHUHXVLQJVKDUS
HGJHGVWRQHVWRFXWOHDYHVIURPEUDQFKHV7KH\WLHGWKHVWUDQGVWRJHWKHUVR
WKH\FRXOGFDUU\IRRG
+DULSHHUHGLQWRWKHLUIDFHV0LOGLQWHUHVWDIHZKDQGVKHOGRXWIRU
VWURNLQJDQLQYLWDWLRQWRJURRP1RJOLQWRIUHFRJQLWLRQLQWKHLUH\HV
+HZDWFKHGDELJIHUQ6KHHODKFDUHIXOO\ZDVKVDQGFRYHUHGIUXLWLQD
FUHHN7KHWURRSIROORZHGVXLW6KHHODKZDVDOHDGHURIVRUWVDIHPDOH
OLHXWHQDQWWR%LJJHVW
6KHDWHZLWKUHOLVKORRNHGDURXQG7KHUHZDVJUDLQJURZLQJQHDUE\SDVW
PDWXULW\ULSHWDQNHUQHOVDOUHDG\VFDWWHUHGLQWKHVDQG\VRLO&RQFHQWUDWLQJ
+DULFRXOGWHOOIURPWKHIDLQWERXTXHWWKDWWKLVZDVDGHOLFDF\$IHZSDQV
VTXDWWHGDQGSLFNHG JUDLQVIURPWKHVDQGVORZZRUN6KHHODKGLGWKHVDPHDQG
WKHQVWRSSHGJD]LQJRIIDWWKHFUHHN7LPHSDVVHGLQVHFWVEX]]HG$IWHUD
ZKLOHVKHVFRRSHGXSVDQGDQGNHUQHOVDQGZDONHGWRWKHEURRNVHGJH6KH
WRVVHGLWDOOLQ7KHVDQGVDQNWKHNHUQHOVIORDWHG6KHVNLPPHGWKHPRIIDQG
JXOSHGWKHPGRZQJULQQLQJZLGHO\
$QLPSUHVVLYHWULFN7KHRWKHUSDQVGLGQRWSLFNXSRQKHUNHUQHO
VNLPPLQJPHWKRG)UXLWZDVKLQJZDVFRQFHSWXDOO\HDVLHUKHVXSSRVHGVLQFHWKH
SDQFRXOGNHHSWKHIUXLWWKHZKROHWLPH.HUQHOVNLPPLQJGHPDQGHGWKURZLQJ
DZD\WKHIRRGILUVWWKHQUHVFXLQJLWDKDUGHUPHQWDOMXPS
+HWKRXJKWDERXWKHUDQGLQUHVSRQVH,SDQVDXQWHUHGRYHUKHUZD\+H
SHHUHGLQWR6KHHODKVH\HVDQGVKHZLQNHGDWKLP'RUV+HZUDSSHGKDLU\DUPV
DURXQGKHULQDEXUVWRIORYH



3XUHDQLPDOORYHVKHVDLGRYHUGLQQHU5HIUHVKLQJ
+DULQRGGHG,OLNHEHLQJWKHUHOLYLQJWKDWZD\
,FDQVPHOOVRPXFKPRUH
)UXLWWDVWHVGLIIHUHQWO\ZKHQWKH\ELWHLQWRLW+HKHOGXSDSXUSOH
EXOEVOLFHGLQWR LWIRUNHGLWLQWRKLVPRXWK7RPHWKLVLVDOPRVW
XQEHDUDEO\VZHHW7R,SDQLWVSOHDVDQWDOLWWOHSHSSHU\,VXSSRVHSDQV
KDYHEHHQVHOHFWHGIRUDVZHHWWRRWK,WJHWVWKHPPRUHIDVWFDORULHV
,FDQWWKLQNRIDPRUHWKRURXJKYDFDWLRQ1RWMXVWJHWWLQJDZD\IURP
KRPHEXWJHWWLQJDZD\IURP\RXUVSHFLHV
+HH\HGWKHIUXLW$QGWKH\UHVRVR
+RUQ\"
,QVDWLDEOH
<RXGLGQWVHHPWRPLQG
0\SDQ,SDQ",EDLORXWZKHQKHJHWVLQWRKLVKXPSWKHPDOOPRRG
6KHH\HGKLP5HDOO\"
'RQW\RXEDLORXW"
<HVEXW,GRQWH[SHFWPHQWREHOLNHZRPHQ
2K"KHVDLGVWLIIO\
,YHEHHQUHDGLQJLQWKH([6SHFVUHVHDUFKOLEUDU\ZKLOH\RXWR\ZLWK
SDQVRFLDOPRYHPHQWV:RPHQLQYHVWKHDYLO\LQWKHLUFKLOGUHQ0HQFDQXVHWZR
VWUDWHJLHVSDUHQWDOLQYHVWPHQWSOXVVRZWKHRDWV6KHOLIWHGDQH\HEURZ
%RWKPXVWKDYHEHHQVHOHFWHGIRULQRXUHYROXWLRQEHFDXVHWKH\UHERWK
FRPPRQ
1RWZLWKPH
7RKLVVXUSULVHVKHODXJKHG,PWDONLQJLQJHQHUDO0\SRLQWLVWKH
SDQVDUHPXFKPRUHSURPLVFXRXVWKDQZHDUH7KHPDOHVUXQHYHU\WKLQJ7KH\
KHOSRXWWKHIHPDOHVZKRDUHFDUU\LQJWKHLUFKLOGUHQ,JDWKHUEXWWKHQWKH\
VKRSDURXQGHOVHZKHUHDOOWKHWLPH
+DULVZLWFKHGLQWRKLVSURIHVVLRQDOPRGHLWZDVGHFLGHGO\PRUH
FRPIRUWDEOHZKHQGHDOLQJZLWKVXFKLVVXHV$VWKHVSHFLDOLVWVVD\WKH\DUH
SXUVXLQJDPL[HGUHSURGXFWLYHVWUDWHJ\
+RZSROLWH
3ROLWHSOXVSUHFLVH
2IFRXUVHKHFRXOGQWUHDOO\EHVXUH'RUVEDLOHGRXWRI6KHHODKZKHQD
PDOHFDPHE\IRUDTXLFNRQH 7KH\ZHUHDOZD\VTXLFNWRRWKLUW\VHFRQGVRU
OHVV &RXOGVKHH[LWWKHSDQPLQGWKDWTXLFNO\"+HUHTXLUHGDIHZPRPHQWVWR
H[WULFDWHKLPVHOI2IFRXUVHLIVKHVDZWKHPDOHFRPLQJJXHVVHGKLV
LQWHQWLRQV
+HZDVVXUSULVHGDWKLPVHOI:KDWUROHGLGMHDORXV\KDYHZKHQWKH\ZHUH
LQKDELWLQJRWKHUERGLHV"'LGWKHXVXDOPRUDOFRGHPDNHDQ\VHQVH"<HWWRWDON
WKLVRYHUZLWKKHUZDVHPEDUUDVVLQJ
+HZDVVWLOOWKHFRXQWU\ER\IURP+HOLFRQOLNHLWRUQRW
5XHIXOO\KHFRQFHQWUDWHGRQKLVPHDORIORFDOURDPHUIOHLVFKZKLFK
WXUQHGRXWWREHDQHDUWK\GDUNPHDWLQDVWHZRIWDQJ\YHJHWDEOHV+HDWH
KHDUWLO\DQGLQUHVSRQVHWR'RUVUDWKHUREYLRXVO\DPXVHGVLOHQFHVDLG,G
SRLQWRXWWKDWSDQVXQGHUVWDQGFRPPHUFHWRR)RRGIRUVH[EHWUD\DORIWKH
OHDGHUIRUVH[VSDUHP\FKLOGIRUVH[JURRPLQJIRUVH[MXVWDERXWDQ\WKLQJ
IRUVH[
,WGRHVVHHPWREHWKHLUVRFLDOFXUUHQF\6KRUWDQGGHFLGHGO\QRW
VZHHW-XVWTXLFNOXQJHVVWURQJVHQVDWLRQVWKHQERRPLWVRYHU
7KHPDOHVQHHGLWWKHIHPDOHVXVHLW
8PPP\RXYHEHHQWDNLQJQRWHV
,I,PJRLQJWRPRGHOSDQVDVDVRUWRIVLPSOLILHGSHRSOHWKHQ,
PXVW
0RGHOSDQV"FDPHWKHDVVXUHGWRQHVRI([6SHF9DGGR7KH\UHQRW

PRGHOFLWL]HQVLIWKDWVZKDW\RXPHDQ+HJDYHWKHPDVXQQ\VPLOHDQG+DUL
JXHVVHGWKLVZDVPRUHRIWKHREOLJDWRU\IULHQGOLQHVVRIWKLVSODFH
+DULVPLOHGPHFKDQLFDOO\,PWU\LQJWRILQGWKHYDULDEOHVWKDWFRXOG
GHVFULEHSDQEHKDYLRU
<RXVKRXOGVSHQGDORWRIWLPHZLWKWKHP9DGGRVDLGVLWWLQJDWWKH
WDEOHDQGKROGLQJXSDILQJHUWRDZDLWHUIRUDGULQN7KH\UHVXEWOH
FUHDWXUHV
,DJUHHVDLG'RUV'R\RXULGHWKHPYHU\PXFK"
6RPHEXWPRVWRIRXUUHVHDUFKLVGRQHGLIIHUHQWO\QRZ9DGGRVPRXWK
WZLVWHGUXHIXOO\6WDWLVWLFDOPRGHOVWKDWVRUWRIWKLQJ,JRWWKLVWRXULQJ
LGHDVWDUWHGXVLQJWKHLPPHUVLRQWHFKZHKDGGHYHORSHGHDUOLHUWRPDNHPRQH\
IRUWKHSURMHFW2WKHUZLVHZHG KDYHKDGWRFORVH
,PKDSS\WRFRQWULEXWH+DULVDLG
$GPLWLW\RXOLNHLW'RUVVDLGDPXVHG:HOO\HV
,WVGLIIHUHQW
$QGJRRGIRUWKHVWDLG3URIHVVRU6HOGRQWRJHWRXWRIKLVVKHOOVKH
VDLG
9DGGREHDPHG%HVXUH\RXGRQWWDNH FKDQFHVRXWWKHUH6RPHRIRXU
FXVWRPHUVWKLQNWKH\UHVXSHUSDQVRUVRPHWKLQJ
'RUVH\HVIOLFNHUHG:KDWGDQJHULVWKHUH"2XUERGLHVDUHLQVORZWLPH
EDFNKHUH
9DGGRVDLG<RXUHVWURQJO\OLQNHG$ELJVKRFNWRDSDQFDQGULYHD
EDFNVKRFNLQ\RXURZQQHXURORJLFDOV\VWHPV
:KDWVRUWRIVKRFN"+DULDVNHG
'HDWKPDMRULQMXU\
,QWKDWFDVH'RUVVDLGWR+DUL,UHDOO\GRQRWWKLQN\RXVKRXOG
LPPHUVH
+DULIHOWLUNHG&RPHRQ,PRQYDFDWLRQQRWLQSULVRQ
$Q\WKUHDWWR\RX
-XVWDPLQXWHDJR\RXZHUHUKDSVRGL]LQJDERXWKRZJRRGIRUPHLWZDV
<RXUHWRRLPSRUWDQWWR
7KHUHVUHDOO\YHU\OLWWOHGDQJHU9DGGRFDPHLQVPRRWKO\3DQVGRQW
GLHVXGGHQO\XVXDOO\
$QG,FDQEDLORXWZKHQ,VHHGDQJHUFRPLQJ+DULDGGHG
%XWZLOO\RX",WKLQN\RXUHJHWWLQJDWDVWHIRUDGYHQWXUH
6KHZDVULJKWEXWKHZDVQWJRLQJWRFRQFHGHWKHSRLQW,IKHZDQWHGD
OLWWOHHVFDSHIURPKLVKXPGUXPPDWKHPDWLFLDQVURXWLQHVRPXFKWKHEHWWHU,
OLNHEHLQJRXWRI7UDQWRUVHQGOHVVFRUULGRUV
9DGGRJDYH'RUVDFRQILGHQWVPLOH$QGZHKDYHQWORVWDWRXULVW\HW
+RZDERXWUHVHDUFKVWDII"VKHVKRWEDFN
:HOOWKDWZDVDPRVWXQXVXDO
:KDWKDSSHQHG"
$SDQIHOORIIDOHGJH7KHKXPDQRSHUDWRUFRXOGQWEDLORXWLQ WLPHDQG
VKHFDPHRXWRILWSDUDO\]HG7KHVKRFNRIH[SHULHQFLQJGHDWKWKURXJK
LPPHUVLRQLVNQRZQIURPRWKHULQFLGHQWVWRSURYHIDWDO%XWZHKDYHV\VWHPVLQ
SODFHQRZWRVKRUWFLUFXLW
:KDWHOVH"VKHSHUVLVWHG
:HOOWKHUHZDVRQHGLIILFXOWHSLVRGH,QWKHHDUO\GD\VZKHQZHKDG
VLPSOHZLUHIHQFHV7KH([6SHFVKLIWHGXQHDVLO\6RPHSUHGDWRUVJRWLQ
:KDWVRUWRISUHGDWRUV"
$SULPDWHSDFNKXQWHU&DUQRSDSLRJUDQGLV:HFDOOWKHPUDERRQV
EHFDXVHWKH\UHJHQHWLFDOO\UHODWHGWRDVPDOOSULPDWHRQDQRWKHUFRQWLQHQW
7KHLU'1$
+RZGLGWKH\JHWLQ"'RUVLQVLVWHG
7KH\UHVRPHZKDWOLNHDZLOGKRJZLWKKRRYHVWKDWGRXEOHDVGLJJHUV
7KH\VPHOOHGJDPHRXUFRUUDOOHGDQLPDOV'XJXQGHUWKHIHQFHV
'RUVH\HGWKHKLJKVROLGZDOOV7KHVHDUHDGHTXDWH"

&HUWDLQO\5DERRQVVKDUH'1$ZLWKWKHSDQVDQGZHEHOLHYHWKH\UHIURP
DQDQFLHQWJHQHWLFH[SHULPHQW6RPHRQHWULHGWRPDNHDSUHGDWRUE\UDLVLQJWKH
HDUOLHUVWRFNXSRQWRWZROHJV/LNHPRVWELSHGDOSUHGDWRUVWKHIRUHOLPEVDUH
VKRUWHQHGDQGWKHKHDGFDUULHGIRUZDUGEDODQFHGE\DWKLFNWDLOWKH\XVHIRU
VLJQDOLQJWRHDFKRWKHU7KH\SUH\RQWKHELJJHVWKHUGDQLPDOVWKH
JLJDQWHORSHHDWLQJRQO\WKHULFKHVWPHDW
:K\DWWDFNKXPDQV"
7KH\WDNHWDUJHWVRIRSSRUWXQLW\WRR3DQVHYHQ:KHQWKH\JRWLQWR
WKHFRPSRXQGWKH\ZHQWIRUDGXOWKXPDQVQRWFKLOGUHQDYHU\VHOHFWLYH
VWUDWHJ\
'RUVVKLYHUHG<RXORRNDWDOOWKLVYHU\REMHFWLYHO\
,PDELRORJLVW
,QHYHUNQHZLWFRXOGEHVRLQWHUHVWLQJ +DULVDLGWRGHIXVHKHU
DSSUHKHQVLRQ
9DGGREHDPHG1RWDVLQYROYLQJDVKLJKHUPDWKHPDWLFV,PVXUH
'RUVPRXWKWZLVWHGZLWKZU\VNHSWLFLVP'R\RXPLQGLIJXHVWVFDUU\
ZHDSRQVLQVLGHWKHFRPSRXQG"


+HKDGDJOLPPHULQJRIDQLGHDDERXWWKH SDQVDZD\WRXVHWKHLU
EHKDYLRUVLQEXLOGLQJDVLPSOHWR\PRGHORISV\FKRKLVWRU\+HPLJKWEHDEOHWR
XVHWKHVWDWLVWLFVRISDQWURRSPRYHPHQWVWKHXSVDQGGRZQVRIWKHLUVKLIWLQJ
IRUWXQHV
3LFWXUHGLQV\VWHPVSDFHOLYLQJVWUXFWXUHVZRUNHGDWWKHHGJHRID
FKDRWLFWHUUDLQ/LIHDVDZKROHKDUYHVWHGWKHIUXLWVRIDODUJHPHQXRI
SRVVLEOHSDWKFKRLFHV1DWXUDOVHOHFWLRQILUVWDFKLHYHGWKHQVXVWDLQHGWKLV
HGJ\VWDWH
:KROHELRVSKHUHVVKLIWHGWKHLUHTXLOLEULXPSRLQWVDPLGHQHUJHWLF
IORZWKURXJKOLNHELUGVEDQNLQJRQZLQGVKHWKRXJKWZDWFKLQJVRPHELJ\HOORZ
RQHVJOLGHRYHUWKHVWDWLRQWDNLQJDGYDQWDJHRIWKHXSGUDIWV
/LNHWKHPZKROHELRORJLFDOV\VWHPVVRPHWLPHVKRYHUHGDWVWDJQDWLRQ
SRLQWV6\VWHPVZHUHDEOHWRFKRRVHVHYHUDOSDWKVRIGHVFHQW6RPHWLPHVWR
VWUHWFKWKHDQDORJ\WKH\FRXOGHDWWKHWDVW\LQVHFWVZKLFKFDPHXSWRWKHPRQ
WKRVHVDPHWULFN\EUHH]HV
)DLOXUHWRQHJRWLDWHVXFKZLQGVRIFKDQJHPHDQWWKHSDWWHUQIRUIHLWHG
LWVV\VWHPLFLQWHJULW\(QHUJLHVGLVVLSDWHG&UXFLDOZDVWKHIDFW WKDWDQ\
VHHPLQJO\VWDEOHVWDWHZDVDFWXDOO\DWULFNRIG\QDPLFIHHGEDFN
1RVWDWLFVWDWHH[LVWHGH[FHSWRQH$ELRORJLFDOV\VWHPDWSHUIHFW
HTXLOLEULXPZDVVLPSO\GHDG
6RWRRSV\FKRKLVWRU\"
+HWDONHGLWRYHUZLWK'RUVDQGVKHQRGGHG%HQHDWKKHUDSSDUHQWFDOP
VKHZDVZRUULHG6LQFH9DGGRVUHPDUNVKHZDVDOZD\VWXWWXWWLQJDERXWVDIHW\
+HUHPLQGHGKHUWKDWVKHKDGHDUOLHUXUJHGKLPWRGRPRUHLPPHUVLRQV7KLVLV
DYDFDWLRQUHPHPEHU"KHVDLGPRUHWKDQRQFH
+HUDPXVHGVLGHZLVHJODQFHVWROGKLPWKDWVKHDOVRGLGQWEX\KLVWDON
DERXWWKHWR\PRGHOLQJ6KHWKRXJKWKHMXVWOLNHGURPSLQJLQWKHZRRGV$
FRXQWU\ER\DWKHDUWVKHFKXFNOHG
6RWKHQH[WPRUQLQJKHVNLSSHGDSODQQHGWUHNWRYLHZWKHJLJDQWHORSH
KHUGV,PPHGLDWHO\KHDQG'RUVZHQWWRWKHLPPHUVLRQFKDPEHUVDQGVOLSSHG
XQGHU7RJHWVRPHVROLGZRUNGRQHKHWROGKLPVHOI
:KDWVWKLV"+HJHVWXUHGWRDVPDOOWLNWRNVWDWLRQHGEHWZHHQWKHLU
LPPHUVLRQSRGV
3UHFDXWLRQ'RUVVDLG,GRQWZDQWDQ\RQHWDPSHULQJZLWKRXU
FKDPEHUVZKLOHZHUHXQGHU
7LNWRNVFRVWSOHQW\RXWKHUH
7KLVRQHJXDUGVWKHFRGHGORFNVVHH"6KHFURXFKHGEHVLGHWKHWLNWRN

DQGUHDFKHGIRUWKHFRQWUROSDQHO,WEORFNHGKHU
,WKRXJKWWKHORFNVZHUHHQRXJK
7KHVHFXULW\FKLHIKDVDFFHVVWRWKRVH
$QG\RXVXVSHFWKHU"
,VXVSHFWHYHU\RQH%XWHVSHFLDOO\KHU

7KHSDQVVOHSWLQWUHHVDQGVSHQWSOHQW\RIWLPHJURRPLQJHDFKRWKHU
)RUWKHOXFN\JURRPHUDWLFNRUORXVHZDVDWUHDW:LWKHQRXJKWKH\FRXOGJHW
KLJKRQVRPHSHSSHU\WDVWLQJDONDORLG+HVXVSHFWHGWKHFDUHIXOVWURNLQJDQG
FRPELQJRIKLVKDLUE\'RUVZDVDEHKDYLRUVHOHFWHGEHFDXVHLWLPSURYHGSDQ
K\JLHQH,WFHUWDLQO\FDOPHG,SDQDOVR
7KHQLWVWUXFNKLPSDQVJURRPHGUDWKHUWKDQYRFDOL]LQJ2QO\LQFULVHV
DQGZKHQDJLWDWHGGLG WKH\FDOODQGFU\PRVWO\DERXWEUHHGLQJIHHGLQJRU
VHOIGHIHQVH7KH\ZHUHOLNHSHRSOHZKRFRXOGQRWUHOHDVHWKHPVHOYHVWKURXJK
WKHFRPIRUWRIWDON
$QGWKH\QHHGHGFRPIRUW7KHFRUHRIWKHLUVRFLDOOLIHUHVHPEOHGKXPDQ
VRFLHWLHVXQGHUVWUHVVLQW\UDQQLHVLQSULVRQVLQFLW\JDQJV1DWXUHUHGLQ
WRRWKDQGFODZ\HWVWULNLQJO\OLNHWURXEOHGSHRSOH
%XWWKHUHZHUHFLYLOL]HG EHKDYLRUVKHUHWRR)ULHQGVKLSVJULHI
VKDULQJEXGGLHVLQDUPVZKRKXQWHGDQGJXDUGHGWXUIWRJHWKHU7KHLUROGJRW
ZULQNOHGEDOGDQGWRRWKOHVV\HWZHUHVWLOOFDUHGIRU
7KHLULQVWLQFWLYHNQRZOHGJHZDVSURGLJLRXV7KH\NQHZKRZWRPDNHDEHG
RIOHDYHVDVGXVNIHOOKLJKXSLQWUHHV7KH\FRXOGFOLPEZLWKJUDVSLQJIHHW
7KH\IHOWFULHGPRXUQHGZLWKRXWEHLQJDEOHWRSDUVHWKHVHLQWRQHDW
JUDPPDWLFDOSDFNDJHVVRWKHHPRWLRQVFRXOGEHPDQDJHGVXEGXHG,QVWHDG
HPRWLRQVGURYHWKHP
+XQJHUZDVWKHVWURQJHVW7KH\IRXQGDQGDWHOHDYHVIUXLWLQVHFWV
HYHQIDLUVL]HGDQLPDOV7KH\ORYHGFDWHUSLOODUV
(DFKPRPHQWHDFKVPDOOHQOLJKWHQPHQWVDQNKLPGHHSHULQWR,SDQ+H
EHJDQWRVHQVHWKHVXEWOHQRRNVDQGFUDQQLHVRIWKHSDQPLQG6ORZO\KH
JDLQHGPRUHFRRSHUDWLYHFRQWURO
7KDWPRUQLQJDIHPDOHIRXQGDELJIDOOHQWUHHDQGEHJDQEDQJLQJRQLW
7KHKROORZWUXQNERRPHGOLNHDGUXPDQGDOOWKHIRUDJLQJSDUW\UXVKHGIRUZDUG
WREHDWLWWRRJULQQLQJZLOGO\DWWKHQRLVH
,SDQMRLQHGLQ+DULIHOWWKHEXUVWRIMR\VHHWKHGLQLW
/DWHUFRPLQJXSRQDZDWHUIDOODIWHUDKHDY\UDLQWKH\VHL]HGYLQHVDQG
VZXQJDPRQJWUHHVRXWRYHUWKHIRDPLQJZDWHUVFUHHFKLQJZLWKGHOLJKWDVWKH\
SHUIRUPHGWZLVWVDQGOHDSVIURPYLQHWRYLQH
7KH\ZHUHOLNHFKLOGUHQLQ DQHZSOD\JURXQG+DULJRW,SDQWRPDNH
LPSRVVLEOHPRYHVZLOGWXPEOHVDQGGLYHVSURSHOOLQJKLPIRUZDUGZLWKDEDQGRQ
WRWKHDVWRQLVKPHQWRIWKHRWKHUSDQV
7KH\ZHUHYLROHQWLQWKHLUVXGGHQSHHYLVKPRPHQWVLQKXVWOLQJIHPDOHV
LQZRUNLQJRXWWKHLUSHUSHWXDOGRPLQDQFHKLHUDUFK\DQGHVSHFLDOO\LQKXQWLQJ
$VXFFHVVIXOKXQWEURXJKWHQRUPRXVH[FLWHPHQWKXJJLQJNLVVLQJSDWV$VWKH
WURRSGHVFHQGHGWRIHHGWKHIRUHVWUDQJZLWKEDUNVVFUHHFKHVKRRWVDQG
SDQWV+DULMRLQHGWKHWXPXOWGDQFHGZLWK6KHHODK'RUV
+HKDGH[SHFWHGWRKDYHWRUHSUHVVKLVSULPPHULWRFUDWGLVOLNHRIPHVV
0DQ\PHULWRFUDWVHYHQGLVOLNHGVRLOLWVHOI1RW+DULZKRKDGEHHQUHDUHG
DPRQJIDUPHUVDQGODERUHUV6WLOOKHKDGWKRXJKWWKDWORQJH[SRVXUHWR
7UDQWRUVSULVV\DHVWKHWLFVZRXOGKDPSHUKLPKHUH,QVWHDGWKHSDQVILOWK
VHHPHGQDWXUDO
,QVRPHPDWWHUVKHGLGKDYHWRUHVWUDLQKLVIHHOLQJV5DWVWKHSDQVDWH
KHDGILUVW/DUJHUJDPHWKH\VPDVKHGDJDLQVWURFNV7KH\GHYRXUHGWKHEUDLQV
ILUVWDVWHDPLQJGHOLFDF\
+DULJXOSHGPHWDSKRULFDOO\EXWZLWK,SDQHFKRLQJWKHLPSXOVHDQG
ZDWFKHGVFUHHQLQJKLVUHOXFWDQFH,SDQKDGWRHDWDIWHUDOO
$WWKHVFHQWRISUHGDWRUVKHIHOW,SDQVKDLUVWDQGRQHQG$QRWKHU

WDQJ\ERXTXHWPDGH,SDQVPRXWKZDWHU+HJDYHQRPHUF\WRIRRGHYHQLILW
ZDVVWLOOZDONLQJ(YROXWLRQLQDFWLRQWKRVHSDQVZKRKDGVKRZHGPHUF\LQWKH
SDVWDWHOHVVDQGOHIWIHZHUGHVFHQGDQWV7KRVHZHUHQWUHSUHVHQWHGKHUH
DQ\PRUH
)RUDOOLWVH[FHVVHVKHIRXQGWKHSDQVEHKDYLRUKDXQWLQJO\IDPLOLDU
0DOHVJDWKHUHGRIWHQIRUFRPEDWIRUSLWFKLQJURFNVIRUEORRGVSRUWVWRZRUN
RXWWKHLUKLHUDUFK\)HPDOHVQHWZRUNHGDQGIRUPHGDOOLDQFHV7KHUHZHUHWUDGHV
RIIDYRUVIRUOR\DOW\NLQVKLSERQGVWXUIZDUVWKUHDWVDQGGLVSOD\V
SURWHFWLRQUDFNHWVDKXQJHUIRUUHVSHFWVFKHPLQJVXERUGLQDWHVUHYHQJHD
VRFLDOZRUOGHQMR\HGE\PDQ\SHRSOHWKDWKLVWRU\KDGMXGJHGJUHDW
0XFKOLNHWKH(PSHURUVFRXUWLQIDFW
'LGSHRSOHORQJWRVWULSDZD\WKHLUFORWKLQJDQGFRQYHQWLRQVEXUVWLQJ
IRUWKDVSDQV"$EUDLQ\SDQZRXOGEHTXLWHDWKRPHLQWKH,PSHULDOJHQWU\
+DULIHOWDIOXVKRIUHYXOVLRQVRVWURQJ,SDQVKRRNDQGILGJHWHG
+XPDQLW\VORWKDGWREHGLIIHUHQWQRWWKLVSULPLWLYHKRUURU
+HFRXOGXVHWKLVFHUWDLQO\DVDWHVWEHGIRUDIXOOWKHRU\7KHQ
KXPDQNLQGZRXOGEHVHOINQRZLQJFDSWDLQVRIWKHPVHOYHV+HZRXOGEXLOGLQWKH
LPSHUDWLYHVRIWKHSDQVEXWJRIDUEH\RQGWRWUXHGHHSSV\FKRKLVWRU\


,GRQWVHHLW'RUVVDLGDWGLQQHU
%XWWKH\UHVRPXFKOLNHXV:HPXVWKDYHVKDUHGVRPHFRQQHFWLRQV+H
SXWGRZQKLVVSRRQ,ZRQGHULIWKH\ZHUHKRXVHSHWVRIRXUVORQJEHIRUH
VWDUWUDYHO"
,ZRXOGQWKDYHWKHPPHVVLQJXSP\KRXVH
$GXOWKXPDQVZHLJKHGOLWWOHPRUHWKDQSDQVEXWZHUHIDUZHDNHU$SDQ
FRXOGOLIWILYHWLPHVPRUHWKDQDZHOOFRQGLWLRQHGPDQ+XPDQEUDLQVZHUH
WKUHHRUIRXUWLPHVPRUHPDVVLYHWKDQDSDQV$KXPDQEDE\DIHZPRQWKVROG
DOUHDG\KDGDEUDLQODUJHUWKDQDJURZQSDQ3HRSOHKDGGLIIHUHQWEUDLQ
DUFKLWHFWXUHDVZHOO
%XWZDVWKDWWKHZKROHVWRU\"+DULZRQGHUHG
*LYHSDQVELJJHUEUDLQVDQGVSHHFKHDVHRIIRQWKHWHVWRVWHURQHVDGGOH
WKHPZLWKPRUHLQKLELWLRQVVSUXFHWKHPXSZLWKDVKDYHDQGDKDLUFXWWHDFK
WKHPWRVWDQGVHFXUHO\RQKLQGOHJVDQG\RXKDGGHOX[HPRGHOSDQVWKDWZRXOG
ORRNDQGDFWUDWKHUKXPDQ
/RRNKHVDLGWR'RUVP\SRLQWLVWKDWWKH\UHFORVHHQRXJKWRXVWR
PDNHDSV\FKRKLVWRU\PRGHOZRUN
7RPDNHDQ\ERG\EHOLHYHWKDW\RXOOKDYHWRVKRZWKDWWKH\UH
LQWHOOLJHQWHQRXJKWRKDYHLQWULFDWHLQWHUDFWLRQV
:KDWDERXWWKHLUIRUDJLQJWKHLUKXQWLQJ"KHSHUVLVWHG
9DGGRVD\VWKH\FRXOGQWHYHQEHWUDLQHGWRGRZRUNDURXQGWKLV
([FXUVLRQ6WDWLRQ
,//VKRZ\RXZKDW,PHDQ/HWVPDVWHUWKHLUPHWKRGVWRJHWKHU
:KDWPHWKRG"
7KHEDVLFRQH*HWWLQJHQRXJKWRHDW
6KHELWLQWRDVWHDNRIDPHDW\ORFDOJUD]HUVXLWDEO\SURFHVVHGDQG
IDWIOHQVHGIRUWKHIDVWLGLRXVXUEDQSDODWHDVWKHEURFKXUHKDGLW&KHZLQJ
ZLWKXQXVXDOIHURFLW\VKHH\HGKLP<RXUHRQ$Q\WKLQJDSDQFDQGR,FDQ
GREHWWHU

'RUVZDYHGDWKLPIURPZLWKLQ6KHHODK/HWWKHFRQWHVWEHJLQ
7KHWURRSZDVIRUDJLQJ+HOHW,SDQPHDQGHUDQGGLGQRWWU\WRKDUQHVV
WKHHPRWLRQDOULSSOHVWKDWODSSHGDFURVVWKHSDQPLQG+HKDGJRWWHQEHWWHUDW
LWEXWDWDVXGGHQVPHOORUVRXQGKHFRXOGORVHKLVJULS$QGJXLGLQJWKH
EOXQWSDQPLQGWKURXJKDQ\WKLQJFRPSOLFDWHGZDVVWLOOOLNHPRYLQJDSXSSHW
ZLWKUXEEHUVWULQJV

6KHHODK'RUVZDYHGDQGVLJQHGWRKLP7KLVZD\
7KH\KDGZRUNHGRXWDFRGHRIDIHZKXQGUHGZRUGVXVLQJILQJHUDQG
IDFLDOJHVWXUHVDQGWKHLUSDQVVHHPHGWRJRDORQJZLWKWKHVHIDLUO\ZHOO
3DQVKDGDURXJKODQJXDJHPL[LQJJUXQWVDQGVKUXJVDQGILQJHUGLVSOD\V7KHVH
FRQYH\HGLPPHGLDWHPHDQLQJVEXWQRWLQWKHXVXDOVHQVHRIVHQWHQFHV0RVWO\
WKH\MXVWVHWXSDVVRFLDWLRQV
7UHHIUXLWJR'RUVVHQW7KH\DPEOHGWKHLUSDQVRYHUWRDFOXPSRI
SURPLVLQJVSLQGO\WUXQNVEXWWKHEDUNZDVWRRVOLFNWRFOLPE
7KHUHVWRIWKHWURRSKDGQRWHYHQERWKHUHG7KH\KDYHIRUHVWVPDUWVZH
ODFN+DULWKRXJKWUXHIXOO\
:KDWWKHUH"KHVLJQHGWR6KHHODK'RUV
3DQVDPEOHGXSWRPRXQGVJDYHWKHPWKHRQFHRYHUDQGUHDFKHGRXWWR
EUXVKDVLGHVRPHPXGUHYHDOLQJDWLQ\WXQQHO7HUPLWHV'RUVVLJQHG
+DULDQDO\]HGWKHVLWXDWLRQDVSDQVGULIWHGLQ1RERG\VHHPHGLQPXFKRI
DKXUU\6KHHODKZLQNHGDWKLPDQGZDGGOHGRYHUWRDGLVWDQWPRXQG
$SSDUHQWO\WHUPLWHVZRUNHGRXWVLGHDWQLJKWWKHQEORFNHGWKHHQWUDQFHV
DWGDZQ+DULOHWKLVSDQVKXIIOHRYHUWRDODUJHWDQPRXQGEXWKHZDVULGLQJ
LWVRZHOOQRZWKDWWKHSDQVUHVSRQVHVZHUHZHDN+DUL,SDQORRNHGIRU
FUDFNVNQREVVOLJKWKROORZVDQGZKHQKHEUXVKHGDZD\VRPHPXGIRXQG
QRWKLQJ2WKHUSDQVUHDGLO\XQPDVNHGWXQQHOV+DGWKH\PHPRUL]HGWKHKXQGUHG
RUPRUHWXQQHOVLQHDFKPRXQG"
+HILQDOO\XQFRYHUHGRQH,SDQZDVQRKHOS+DULFRXOGFRQWUROEXWWKDW
EORFNHGXSWKHZHOOVSULQJVRIGHHSNQRZOHGJHZLWKLQWKHSDQ
7KHSDQVGHIWO\WRUHRIIWZLJVRUJUDVVVWDONVQHDUWKHLUPRXQGV+DUL
FDUHIXOO\IROORZHGWKHLUOHDG+LVWZLJVDQGJUDVVGLGQWZRUN7KHILUVWORW
ZDVWRRSOLDQWDQGZKHQ KHWULHGWRZRUNWKHPLQWRDWZLVWLQJWXQQHOWKH\
FROODSVHGDQGEXFNOHG+HVZLWFKHGWRVWLIIHURQHVEXWWKRVHFDXJKWRQWKH
WXQQHOZDOOVRUVQDSSHGRII)URP,SDQFDPHOLWWOHKHOS+DULKDGPDQDJHGKLP
DELWWRRZHOO
+HZDVJHWWLQJHPEDUUDVVHG(YHQWKH\RXQJHUSDQVKDGQRWURXEOHSLFNLQJ
MXVWWKHULJKWVWHPVRUVWLFNV+DULZDWFKHGDSDQQHDUE\GURSDVWLFNWKDW
VHHPHGWRZRUN+HWKHQSLFNHGLWXSZKHQWKHSDQPRYHGRQ+HIHOWZHOOLQJXS
IURP,SDQDEOXQWDQ[LHW\PL[LQJIUXVWUDWLRQDQGKXQJHU+HFRXOGWDVWHWKH
DQWLFLSDWLRQRIOXVFLRXVMXLF\WHUPLWHV
+HVHWWRZRUNSOXFNLQJWKHHPRWLRQDOVWULQJVRI,SDQ7KLVMREZHQW
HYHQZRUVH9DJXHWKRXJKWVGULIWHGXSIURP,SDQEXW+DULZDVLQFRQWURORI
WKHPXVFOHVQRZDQGWKDWZDVWKHEDGSDUW
+H TXLFNO\IRXQGWKDWWKHVWLFNKDGWREHVWXFNLQDERXWWHQ
FHQWLPHWHUVWXUQLQJKLVZULVWWRQDYLJDWHLWGRZQWKHWZLVW\FKDQQHO7KHQKH
KDGWRJHQWO\YLEUDWHLW7KURXJK,SDQKHVHQVHGWKDWWKLVZDVWRDWWUDFW
WHUPLWHVWRELWHLQWRWKHVWLFN$WILUVWKH GLGLWWRRORQJDQGZKHQKHGUHZ
WKHVWLFNRXWLWZDVKDOIJRQH7HUPLWHVKDGELWWHQFOHDQO\WKURXJKLW6RKH
KDGWRVHDUFKRXWDQRWKHUVWLFNDQGWKDWPDGH,SDQVVWRPDFKJURZO
7KHRWKHUSDQVZHUHWKURXJKWHUPLWHVQDFNLQJZKLOH+DULZDVVWLOO
IXPEOLQJ IRUKLVILUVWWDVWH7KHQXDQFHVLUNHGKLP+HSXOOHGWKHVWLFNRXW
WRRIDVWQRWWXUQLQJLWHQRXJKWRHDVHLWSDVWWKHWXQQHOVFXUYHV7LPHDQG
DJDLQKHIHWFKHGIRUWKWKHVWLFNRQO\WRILQGWKDWKHKDGVFUDSHGWKH
OXVFLRXV7HUPLWHVRIIRQWKHZDOOV7KHLUELWHVSXQFWXUHGKLVVWLFNXQWLOLW
ZDVVRVKUHGGHGKHKDGWRJHWDQRWKHU7KHWHUPLWHVZHUHGLQLQJEHWWHUWKDQ
KH
+HILQDOO\FDXJKWWKHNQDFNDIOXLGVORZWZLVWRIWKHZULVWJUDFHIXOO\
H[WUDFWLQJWHUPLWHVFOLQJLQJOLNHEXPSV,SDQOLFNHGWKHPRIIHDJHUO\+DUL
OLNHGWKHPRUVHOVILOWHUHGWKURXJKSDQWDVWHEXGV1RWPDQ\WKRXJK2WKHUV
RIWKHWURRSZHUHZDWFKLQJKLVVNLPS\KDUYHVWKHDGVWLOWHGLQFXULRVLW\DQG
KHIHOWKXPLOLDWHG
7KHKHOOZLWKWKLVKHWKRXJKW
+HPDGH,SDQWXUQDQGZDONLQWRWKHZRRGV,SDQUHVLVWHGGUDJJLQJKLV

IHHW+DULIRXQGDWKLFNOLPEVQDSSHGLWRIIWRFDUU\LQJVL]HDQGZHQWEDFN
WRWKHPRXQG
1RPRUHIRROLQJZLWKVWLFNV+HZKDFNHGWKHPRXQGVROLGO\)LYHPRUHDQG
KHKDGSXQFKHGDELJKROH(VFDSLQJWHUPLWHVKH VFRRSHGXSE\WKHGHOLFLRXV
KDQGIXO
6RPXFKIRUVXEWOHW\KHZDQWHGWRVKRXW+HWULHGZULWLQJDQRWHIRU
KHULQWKHGXVWEXWLWZDVKDUGIRUFLQJWKHOHWWHUVRXWWKURXJKKLVVXGGHQO\
DZNZDUGKDQGV3DQVFRXOGKDQGOHDVWLFNWRIHWFKIRUWKJUXEVEXWPDUNLQJD
VXUIDFHZDVVRPHKRZQRWDUHDG\WDOHQW+HJDYHXS
6KHHODK'RUVFDPHLQWRYLHZSURXGO\FDUU\LQJDUHHGVZDUPLQJZLWK
ZKLWHEHOOLHGWHUPLWHV7KHVHZHUHWKHEHVWDSDQJRXUPHWGHOLFDF\,EHWWHU
VKHVLJQHG
+HPDGH,SDQVKUXJDQGVLJQHG,JRWPRUH
6RLWZDVDGUDZ
/DWHU'RUVUHSRUWHGWRKLPWKDWDPRQJWKHWURRSKHZDVNQRZQQRZDV%LJ
6WLFN7KHQDPHSOHDVHGKLPLPPHQVHO\


$WGLQQHUKHIHOWHODWHGH[KDXVWHGDQGQRWLQWKHPRRGIRU
FRQYHUVDWLRQ%HLQJDSDQVHHPHGWRVXSSUHVVKLVVSHHFKFHQWHUV,WWRRNVRPH
HIIRUWWRDVN([6SHF9DGGRDERXWLPPHUVLRQWHFKQRORJ\8VXDOO\KHDFFHSWHG
WKHURXWLQHWHFKQRPLUDFOHVEXWXQGHUVWDQGLQJSDQVPHDQWXQGHUVWDQGLQJKRZKH
H[SHULHQFHGWKHP
7KHLPPHUVLRQKDUGZDUHSXWV\RXLQWKHPLGGOHRIDSDQVDQWHULRU
FLQJXODWHJ\UXV9DGGRVDLGRYHUGHVVHUW-XVWJ\UXVIRUVKRUW7KDWVWKH
EUDLQVPDLQFRUWLFDOUHJLRQIRUPHGLDWLQJHPRWLRQVDQGH[SUHVVLQJWKHP
WKURXJKDFWLRQ
7KHEUDLQ"'RUVDVNHG:KDWDERXWRXUV"
9DGGRVKUXJJHG6DPHJHQHUDOOD\RXW3DQVDUHVPDOOHUZLWKRXWDELJ
FHUHEUXP
+DULOHDQHGIRUZDUGLJQRULQJKLVVWHDPLQJFXSRINDII7KLVJ\UXV
LWGRHVQWJLYHGLUHFWPRWRUFRQWURO"
1RZHWULHGWKDW,WGLVRULHQWVWKHSDQVRPXFKZKHQ\RXOHDYHLW
FDQWJHWLWVHOIEDFNWRJHWKHU
6RZHKDYHWR EHPRUHVXEWOH'RUVVDLG
:HKDYHWREH,QSDQPDOHVWKHSLORWOLJKWLVDOZD\VRQLQQHXURQV
WKDWFRQWURODFWLRQDQGDJJUHVVLRQ
7KDWVZK\WKH\UHPRUHYLROHQFHSURQH"VKHDVNHG
:HWKLQNVR,WSDUDOOHOVVWUXFWXUHVLQRXURZQEUDLQV
5HDOO\"0HQVQHXURQV"'RUVORRNHGGRXEWIXO+XPDQPDOHVKDYHKLJKHU
DFWLYLW\OHYHOVLQWKHLUWHPSRUDOOLPELFV\VWHPVGHHSHUGRZQLQWKHEUDLQ
HYROXWLRQDULO\ROGHUVWUXFWXUHV
6RZK\QRWSXWPHLQWRWKDWOHYHO"+DULDVNHG
:HSODFHWKHLPPHUVLRQFKLSVLQWRWKHJ\UXVDUHDEHFDXVHZHFDQUHDFK
LWIURPWKHWRSVXUJLFDOO\7KHWHPSRUDOOLPELFLVZD\IDUGRZQLPSRVVLEOH
WRLPSODQWDFKLS
'RUVIURZQHG6RSDQPDOHV
$UHKDUGHUWRFRQWURO3URIHVVRU6HOGRQKHUHLVUXQQLQJKLVSDQIURP
WKHEDFNVHDWVRWRVSHDN
:KHUHDV'RUVLVUXQQLQJKHUVIURPDFRQWUROFHQWHUWKDWIRUIHPDOH
SDQVLVPRUHFHQWUDO"+DULSHHUHGLQWRWKHGLVWDQFH,ZDVKDQGLFDSSHG
'RUVJULQQHG<RXKDYHWRSOD\WKHKDQG\RXUHGHDOW
,WVQRWIDLU
%LJ6WLFNELRORJ\LVGHVWLQ\
7KHWURRSFDPHXSRQURWWLQJIUXLW)HYHUHGH[FLWHPHQWUDQWKURXJKWKHP

7KHVPHOOZDVUHSXJQDQWDQGHQWLFLQJDWWKHVDPHWLPHDQGDWILUVWKH
GLGQRWXQGHUVWDQGZK\7KHSDQVUXVKHGWRWKHRYHUULSHEXOEVRIEOXHDQG
VLFNO\JUHHQSRSSLQJRSHQWKHVNLQVVXFNLQJRXWWKHMXLFH
7HQWDWLYHO\+DULWULHGRQH7KHKLWZDVLPPHGLDWH$ZDUPIHHOLQJRI
ZHOOEHLQJNLQGOHGXSLQKLP2IFRXUVHWKHIUXLW\HVWHUVKDGFRQYHUWHGLQWR
DOFRKRO7KHSDQVZHUHTXLWHGHOLEHUDWHO\VHWWLQJDERXWJHWWLQJGUXQN
+HOHWKLVSDQIROORZVXLW+HKDGQWPXFKFKRLFHLQWKHPDWWHU
,SDQJUXQWHGDQGWKUDVKHGKLVDUPVZKHQHYHU+DULWULHGWRWXUQKLPDZD\
IURPWKHWHDUGURSIUXLW$QGDIWHUDZKLOH+DULGLGQWZDQWWRWXUQDZD\
HLWKHU+HJDYHKLPVHOIXSWRDJRRGVROLGGUXQN+HKDGEHHQZRUU\LQJDORW
ODWHO\DJLWDWHGLQKLVSDQDQGWKLVZDVFRPSOHWHO\QDWXUDOZDVQWLW"
7KHQDSDFNRIUDERRQVDSSHDUHGDQGKHORVWFRQWURORI,SDQ

7KH\FRPHIDVW5XQQLQJWZROHJVQRVRXQG7KHLUWDLOVWZLWFKWDONLQJ
WRHDFKRWKHU
)LYHFLUFOHOHIW7KH\FXWRII(VD
%LJJHVWWKXQGHUVDWWKHP+XQNHU UXQVWRQHDUHVWDQGLWVSLNHVKLPZLWK
LWVIRUHSXQFKHU
,WKURZURFNV+LWRQH,W\HOSVDQGVFXUULHVEDFN%XWRWKHUVWDNHLWV
SODFH,WKURZDJDLQDQGWKH\FRPHDQGWKHGXVWDQG\RZOLQJDUHWKLFNDQGWKH
RWKHUVRIWKHPKDYH(VD7KH\FXWKHUZLWKWKHLUSXQFKFODZV.LFNKHUZLWK
VKDUSKRRYHV
7KUHHRIWKHPFDUU\KHURII
2XUIHPVUXQDIUDLG:HZDUULRUVVWD\
:HILJKWWKHP6KULHNLQJWKURZLQJELWLQJZKHQWKH\JHWFORVH%XWZH
FDQQRWUHDFK(VD
7KHQWKH\JR)DVWUXQQLQJRQWKHLUWZRKRRIHG OHJV)XUOLQJWKHLU
WDLOVLQYLFWRU\7DXQWLQJXV
:HIHHOEDG(VDZDVROGDQGZHORYHGKHU
)HPVFRPHEDFNQHUYRXV:HJURRPRXUVHOYHVDQGNQRZWKDWWKHWZROHJV
DUHHDWLQJ(VDVRPHZKHUH
%LJJHVWFRPHE\WU\WRSDWPH
,VQDUO+H%LJJHVW7KLVWKLQJKHVKRXOGKDYHVWRSSHG
+LVH\HVJHWELJDQGKHVODSPH,VODSEDFNDWKLP+HVODPLQWRPH:H
UROODURXQGLQGXVW%LWLQJ\RZOLQJ%LJJHVWVWURQJVWURQJDQGSRXQGP\KHDG
RQJURXQG
2WKHUZDUULRUVWKH\ZDWFKXVQRWMRLQLQ
+HEHDWPH ,KXUW,JRDZD\
%LJJHVWVWDUWVFDOPLQJGRZQWKHZDUULRUV)HPVFRPHE\DQGSD\WKHLU
UHVSHFWVWR%LJJHVW7RXFKKLPJURRPKLPIHHOKLPWKHZD\KHOLNHV+H
PRXQWVWKUHHRIWKHPUHDOTXLFN+HIHHOLQJ%LJJHVWDOOULJKW
0H,OLFNP\VHOI6KHHODKFRPHJURRPPH$IWHUDZKLOH,IHHOEHWWHU
)RUJHWDERXWWURXEOH
,QRWIRUJHW%LJJHVWEHDWPHWKRXJK,QIURQWRIHYHU\ERG\1RZ,KXUW
%LJJHVWJHWJURRPLQJ
+HOHWWKHPFRPHDQGWDNH(VD+H%LJJHVWKHVKRXOGVWRSWKHP
6RPHGD\,EHDOORYHUKLP 2QKLVEDFN
6RPHGD\,EH%LJJHU


:KHQGLG\RXEDLORXW"'RUVDVNHG
$IWHU%LJJHVWVWRSSHGSRXQGLQJRQPHXKRQ,SDQ
7KH\ZHUHUHOD[LQJEHVLGHDVZLPPLQJSRRODQGWKHKHDG\VPHOOVRIWKH
IRUHVWVHHPHGWRDZDNHQLQ+DULWKHXUJHWREHGRZQWKHUHDJDLQLQWKH
YDOOH\VRIGXVWDQGEORRG+HWUHPEOHGWRRNDGHHSEUHDWK7KHILJKWLQJKDG
EHHQVRLQYROYLQJKHKDGQWZDQWHGWR OHDYHGHVSLWHWKHSDLQ,PPHUVLRQKDGD

K\SQRWLFTXDOLW\
,NQRZKRZ\RXIHHOVKHVDLG,WVHDV\WRWRWDOO\LGHQWLI\ZLWK
WKHP,OHIW6KHHODKZKHQWKRVHUDERRQVFDPHFORVH3UHWW\VFDU\
9DGGRVDLGWKH\UHGHULYHGIURP(DUWKWRR
3OHQW\RI '1$RYHUODS%XWWKH\VKRZVLJQVRIH[WHQVLYHUHFHQWWLQNHULQJ
WRPDNHWKHPSUHGDWRUV
:K\ZRXOGWKHDQFLHQWVZDQWWKRVH"
7U\LQJWRILJXUHRXWRXURULJLQV"
7RKLVVXUSULVHVKHODXJKHG1RWHYHU\RQHKDV\RXUVDPHLQWHUHVWV
:K\WKHQ"
+RZDERXWXVLQJUDERRQVDVJDPHWRKXQW"6RPHWKLQJDOLWWOH
FKDOOHQJLQJ"
+XQWLQJ"7KH(PSLUHKDVDOZD\VEHHQWRRIDUIURPWKURZEDFNSULPLWLYLVP
WR+HKDGEHHQDERXWWRODXQFKLQWRDOLWWOHOHFWXUHRQKRZIDUKXPDQLW\KDG
FRPHZKHQKHUHDOL]HGWKDWKH GLGQWEHOLHYHLWDQ\PRUH8P
<RXYHDOZD\VWKRXJKWRISHRSOHDVFHUHEUDO1RSV\FKRKLVWRU\FRXOG
ZRUNLILWGLGQWWDNHLQWRDFFRXQWRXUDQLPDOVHOYHV
2XUZRUVWVLQVDUHDOORXURZQ,IHDU+HKDGQRWH[SHFWHGWKDWKLV
H[SHULHQFHVKHUHZRXOG VKDNHKLPVR7KLVZDVVREHULQJ
1RWDWDOO*HQRFLGHRFFXUVLQZROYHVDQGSDQVDOLNH0XUGHULV
ZLGHVSUHDG'XFNVDQGRUDQJXWDQVUDSH(YHQDQWVKDYHRUJDQL]HGZDUIDUHDQG
VODYHUDLGV3DQVKDYHDWOHDVWDVJRRGDFKDQFHRIEHLQJPXUGHUHGDVGR
KXPDQV9DGGRVD\V2IDOOWKHKDOORZHGKXPDQKDOOPDUNVVSHHFKDUW
WHFKQRORJ\DQGWKHUHVWWKHRQHZKLFKFRPHVPRVWREYLRXVO\IURPDQLPDO
DQFHVWRUVLVJHQRFLGH
<RXYHEHHQOHDUQLQJIURP9DGGR
,WZDVDJRRGZD\WRNHHSDQH\HRQKLP
%HWWHUWREHVXVSLFLRXVWKDQVRUU\"
2IFRXUVHVKHVDLGEODQGO\JLYLQJQRWKLQJDZD\
:HOOOXFNLO\HYHQLIZHDUHVXSHUSDQV,PSHULDORUGHUDQG
FRPPXQLFDWLRQEOXUVGLVWLQFWLRQVEHWZHHQ8VDQG7KHP
6R"
7KDWEOXQWVWKHGHHSLPSXOVHWRJHQRFLGH
6KHODXJKHGDJDLQWKLVWLPHUDWKHUWRKLVDQQR\DQFH<RXKDYHQW
XQGHUVWRRGKLVWRU\YHU\ZHOO6PDOOHUJURXSVVWLOONLOOHDFKRWKHURIIZLWK
JUHDWUHOLVK,Q=RQH6DJLWWDULXVGXULQJWKHUHLJQRI2PDUWKH,PSDOHU
,FRQFHGHWKHUHDUHVPDOOVFDOHWUDJHGLHVE\WKHGR]HQV%XWRQWKH
VFDOHZKHUHSV\FKRKLVWRU\PLJKWZRUNDYHUDJLQJRYHUSRSXODWLRQVRIPDQ\
WKRXVDQGVRIELOOLRQV
:KDWPDNHV\RXVRVXUHQXPEHUVDUHDQ\SURWHFWLRQ"VKHDVNHG
SRLQWHGO\
6RIDU
7KH(PSLUHKDVEHHQLQVWDVLV
$VWHDG\VWDWHVROXWLRQDFWXDOO\'\QDPLFHTXLOLEULXP
$QGLIWKDWHTXLOLEULXPIDLOV"
:HOOWKHQ,KDYHQRWKLQJWRVD\6KHVPLOHG+RZXQFKDUDFWHULVWLF
8QWLO,KDYHDUHDOZRUNLQJWKHRU\
2QHWKDWFDQDOORZIRUZLGHVSUHDGJHQRFLGHLIWKH(PSLUHHURGHV
+HVDZKHUSRLQWWKHQ<RXUHVD\LQJ,UHDOO\QHHGWKLVDQLPDOQDWXUH
SDUWRIKXPDQV
,PDIUDLGVR,PWUDLQHGWRDOORZIRULWDOUHDG\
+HZDVSX]]OHG+RZVR"
,GRQWKDYH\RXUYLHZRIKXPDQLW\6FKHPLQJSORWV6KHHODKJUDEELQJ
PRUHPHDWIRUKHU\RXQJ,SDQZDQWLQJWRGRLQ%LJJHVWWKRVHWKLQJVKDSSHQLQ
WKH(PSLUH-XVWEHWWHUGLVJXLVHG
6R"
&RQVLGHU([6SHF9DGGR+HPDGHDFRPPHQWDERXW\RXUZRUNLQJRQD

WKHRU\RIKLVWRU\WKHRWKHUHYHQLQJ
6R"
:KRWROGKLP\RXZHUH"
,GRQWWKLQN,DK\RXWKLQNKHVFKHFNLQJXSRQXV"
+HDOUHDG\NQRZV
7KHVHFXULW\FKLHIPD\EHVKHWROGKLPDIWHUFKHFNLQJRQPHZLWKWKH
$FDGHPLF3RWHQWDWH
6KHJUDFHGKLPZLWKDQXQUHDGDEOHVPLOH,GRORYH\RXUHQGOHVVQDLYH
ZD\RIVHHLQJWKHZRUOG
/DWHUKHFRXOGQWGHFLGHZKHWKHUVKHKDGPHDQWLWDVDFRPSOLPHQW


9DGGRLQYLWHGKLPWRWU\DFRPEDWVSRUWWKHVWDWLRQRIIHUHGDQG+DUL
DFFHSWHG,WZDVDQHQKDQFHGVZRUGSOD\ZLWKOHYLWDWLRQWKURXJKHOHFWURVWDWLF
OLIWHUV+DULZDVVORZDQGLQHSW8VLQJKLVRZQERG\DJDLQVW9DGGRVVZLIW
PRYHVPDGHKLPORQJIRUWKHVXUHQHVVDQGJUDFHRI,SDQ
9DGGRDOZD\VRSHQHGZLWKDWUDGLWLRQDOSRVWXUHRQHIRRWIRUZDUGKLV
SURGVZRUGPDNLQJOLWWOHFLUFOHVLQWKH DLU+DULSRNHGWKURXJK9DGGRV
GHIHQVHVRPHWLPHVEXWXVXDOO\VSHQWDOOKLVOLIWHUHQHUJ\HOXGLQJ9DGGRV
WKUXVWV+HGLGQRWHQMR\LWQHDUO\DVPXFKDV9DGGR
+HGLGOHDUQELWVDQGSLHFHVDERXWSDQVIURP9DGGRDQGIURPWUROOLQJ
WKURXJKWKHYDVWVWDWLRQOLEUDU\7KHPDQVHHPHGDELWXQHDV\ZKHQ+DULSUREHG
WKHGDWDDUUD\VDVWKRXJK9DGGRVRPHKRZRZQHGWKHPDQGDQ\UHDGHUZDVD
WKLHI2UDWOHDVWWKDWZDVZKDW+DULWRRNWREHWKHRULJLQRIWKHXQHDVH
+HKDGQHYHUWKRXJKWDERXWDQLPDOVYHU\PXFKWKRXJKKHKDGJURZQXS
DPRQJWKHPRQ+HOLFRQ<HWKHFDPHWRIHHOWKDWWKH\WRRKDGWREH
XQGHUVWRRG
&DWFKLQJVLJKWRILWVHOILQDPLUURUDGRJVHHVWKHLPDJHDVDQRWKHU
GRJ6RGLGFDWVILVKRUELUGV$IWHUDZKLOHWKH\JHWXVHGWRWKHKDUPOHVV
LPDJHVLOHQWDQGVPHOOIUHHEXWWKH\GRQRWVHHLWDVWKHPVHOYHV
+XPDQFKLOGUHQKDGWREHDERXWWZR\HDUVROGWRGREHWWHU
3DQVWRRNDIHZGD\VWRILJXUHRXWWKDWWKH\ZHUHORRNLQJDWWKHPVHOYHV
7KHQWKH\SUHHQHGEHIRUHLWVKDPHOHVVO\VWXGLHGWKHLUEDFNVDQGJHQHUDOO\
WULHGWRVHHWKHPVHOYHVGLIIHUHQWO\HYHQSXWWLQJOHDYHVRQWKHLUKHDGVOLNH
KDWVDQGODXJKLQJDWWKHUHVXOW
6RWKH\FRXOGGRVRPHWKLQJRWKHUDQLPDOVFRXOGQRWJHWRXWVLGH
WKHPVHOYHVDQGORRNEDFN
7KH\SODLQO\OLYHGLQDZRUOGFKDUJHGZLWKHFKRHVDQGUHPLQLVFHQFHV
7KHLUGRPLQDQFHKLHUDUFK\ZDVDIUR]HQUHFRUGRISDVWFRHUFLRQ7KH\
UHPHPEHUHGWHUPLWHPRXQGVWUHHVWRGUXPXVHIXOVSRWVZKHUHODUJHZDWHU
VSRQJHOHDYHVIHOORUJUDLQPDWXUHG
$OOWKLVIHGLQWRWKHWR\PRGHOKHKDGEHJXQEXLOGLQJLQKLVQRWHVD
SDQSV\FKRKLVWRU\,WXVHGWKHLUPRYHPHQWVULYDOULHVKLHUDUFKLHVSDWWHUQV
RIHDWLQJDQGPDWLQJDQGG\LQJWHUULWRU\UHVRXUFHVDQGWURRSFRPSHWLWLRQ
IRUWKHP+HIRXQGDZD\WRIDFWRULQWRKLVHTXDWLRQVWKHELRORJLFDOEDJJDJH
RIGDUNEHKDYLRUVHYHQWKHZRUVWOLNHGHOLJKWLQWRUWXUHDQGHDV\
H[WHUPLQDWLRQVRIRWKHUVSHFLHVIRUVKRUWWHUPJDLQ
$OOWKHVHWKHSDQVKDG-XVWOLNHWKH(PSLUH
$WDGDQFHWKDWHYHQLQJKHZDWFKHGWKHFURZGZLWKIUHVKYLVLRQ
)OLUWLQJZDVSUDFWLFHPDWLQJ+HFRXOGVHHLWLQWKHVSDUNOHRIH\HV
WKHUK\WKPVRIWKHGDQFH7KHZDUPEUHH]HZDIWLQJXSIURPWKHYDOOH\EURXJKW
VPHOOVRIGXVWURWOLIH$QDQLPDOUHVWOHVVQHVVPRYHGLQWKHURRP
+HTXLWHOLNHGGDQFLQJDQG'RUVZDVDOXVKFRPSDQLRQWRQLJKW<HWKH
FRXOGQRWVWRSKLVPLQGIURPVLIWLQJDQDO\]LQJWDNLQJWKHZRUOGEHIRUHKLP
DSDUWLQWRPHFKDQLVPV

7KH QRQYHUEDOWHPSODWHKXPDQVXVHGIRUDWWUDFWDSSURDFKVWUDWHJLHV
DSSDUHQWO\GHVFHQGHGIURPDVKDUHGPDPPDOLDQKHULWDJH'RUVKDGSRLQWHGRXW
+HWKRXJKWRIWKDWZDWFKLQJWKHFURZGDWWKHEDU
$ZRPDQFURVVHVDFURZGHGURRPKLSVVZD\LQJH\HVUHVWLQJPRPHQWDULO\
RQDOLNHO\PDQWKHQFR\O\ORRNLQJDZD\MXVWDVVKHDSSDUHQWO\QRWLFHVKLV
UHJDUG$VWDQGDUGRSHQLQJPRYH1RWLFHPH
7KHVHFRQGLV,DPKDUPOHVV$KDQGSODFHGSDOPXSRQDWDEOHRUNQHH$
VKRXOGHUVKUXJGHULYHGIURPDQDQFLHQWYHUWHEUDWHUHIOH[VLJQLI\LQJ
KHOSOHVVQHVV&RPELQHWKDWZLWKDWLOWHGKHDGZKLFKGLVSOD\VWKH
YXOQHUDELOLW\RIWKHQHFN7KHVHFRPPRQO\DSSHDUHGZKHQWZRSHRSOHGUDZQWR
HDFKRWKHUKDYHWKHLUILUVWFRQYHUVDWLRQDOOTXLWHXQFRQVFLRXVO\
6XFKPRYHVDQGJHVWXUHVDUH VXEFRUWLFDOHPHUJLQJIDUEHORZWKH
QHRFRUWH[
'LGVXFKIRUFHVVKDSHWKH(PSLUHPRUHWKDQWUDGHEDODQFHVDOOLDQFHV
WUHDWLHV"
+HORRNHGDWKLVRZQNLQGDQGWULHGWRVHHLWWKURXJKSDQH\HV
7KRXJKKXPDQIHPDOHVPDWXUHGHDUOLHUWKH\GLGQRWJRRQWRDFTXLUH
FRDUVHERG\KDLUERQ\H\HULGJHVGHHSYRLFHVRUWRXJKVNLQ0DOHVGLG$QG
ZRPHQHYHU\ZKHUHVWURYHWRVWD\\RXQJORRNLQJ&RVPHWLFVPDNHUVIUHHO\
DGPLWWHGWKHLUEDVLFUROH:HGRQWVHOOSURGXFWV:HVHOOKRSH
&RPSHWLWLRQIRUPDWHVZDVLQFHVVDQW0DOHSDQVVRPHWLPHVWRRNWXUQVZLWK
IHPDOHVLQHVWUXV7KH\KDGKXJHWHVWLFOHVLPSO\LQJWKDWUHSURGXFWLYH
DGYDQWDJHKDGFRPHWRWKRVHPDOHVZKRSURGXFHGHQRXJKVSHUPWRRYHUZKHOPWKHLU
ULYDOVFRQWULEXWLRQV+XPDQPDOHVKDGSURSRUWLRQDOO\VPDOOHUWHVWLFOHV
%XWKXPDQVJRWWKHLUUHYHQJHZKHUHLWPDWWHUHG$OONQRZQSULPDWHVZHUH
JHQHWLFDOO\UHODWHGWKRXJKWKH\KDGVHSDUDWHGRXWDVVSHFLHVPDQ\PLOOLRQVRI
\HDUVDJR,Q'1$PHDVXUHGWLPHSDQVOD\VL[PLOOLRQ\HDUVIURPKXPDQV2I
DOOSULPDWHVKXPDQVKDGWKHODUJHVWSHQLVHV
+HPHQWLRQHGWR'RUVWKDWRQO\IRXUSHUFHQWRIPDPPDOVIRUPHGSDLU
ERQGVZHUHPRQRJDPRXV3ULPDWHVUDWHGDELWKLJKHUEXWQRWPXFK%LUGVZHUH
PXFKEHWWHUDWLW
6KHVQLIIHG'RQWOHWDOOWKLVELRORJ\JRWR\RXUKHDG
2KQR,ZRQWOHWLWJHWWKDWIDU
<RXPHDQLWEHORQJVLQORZHUSODFHV"
0DGDP\RXOOKDYHWREHWKHMXGJHRIWKDW
$K\RXDQG\RXUVLQJOHHQWHQGUHKXPRU
/DWHUWKDWHYHQLQJKHKDGDPSOHRSSRUWXQLW\WRUHIOHFWXSRQWKHWUXWK
WKDWZKLOHLWZDVQRWDOZD\VJUHDWWREHKXPDQLWZDVWUHPHQGRXVIXQEHLQJD
PDPPDO


7KH\VSHQWRQHODVWGD\LPPHUVHGLQWKHLUSDQVVXQQLQJWKHPVHOYHV
EHVLGHDJXVKLQJVWUHDP7KH\KDGWROG9DGGRWREULQJWKHVKXWWOHGRZQWKH
QH[WGD\ERRNDZRUPKROHWUDQVLW7KHQWKH\HQWHUHGWKHLPPHUVLRQFDSVXOHDQG
VDQNLQWRDODVWUHYHULH
8QWLO%LJJHVWVWDUWHGWRPRXQW6KHHODK
+DUL,SDQVDWXSKLVKHDGIRJJ\6KHHODKZDVVKULHNLQJDW%LJJHVW6KH
VODSSHGKLP
%LJJHVWKDG PRXQWHG6KHHODKEHIRUH'RUVKDGEDLOHGRXWTXLFNO\KHU
PLQGUHWXUQLQJWRKHUERG\LQWKHFDSVXOH
6RPHWKLQJZDVGLIIHUHQWQRZ,SDQKXUULHGRYHUDQGVLJQHGWR6KHHODK
ZKRZDVWKURZLQJSHEEOHVDW%LJJHVW:KDW"
6KHPRYHGKHUKDQGVUDSLGO\VLJQLQJ1RJR
6KHFRXOGQRWEDLORXW6RPHWKLQJZDVZURQJEDFNDWWKHFDSVXOH+HFRXOG
JREDFNKLPVHOIWHOOWKHP
+DULPDGHWKHOLWWOHPHQWDOIOLSWKDWZRXOGEDLOKLPRXW

1RWKLQJKDSSHQHG
+HWULHGDJDLQ6KHHODKWKUHZGXVWDQGSHEEOHVEDFNLQJDZD\IURP
%LJJHVW1RWKLQJ
1RWLPHWRWKLQN+HVWHSSHGEHWZHHQ6KHHODKDQG%LJJHVW
7KHPDVVLYHSDQIURZQHG+HUHZDV,SDQEXGG\,SDQJHWWLQJLQWKHZD\
'HQ\LQJKLPDIHUQ%LJJHVWVHHPHGWRKDYHIRUJRWWHQWKHFKDOOHQJHDQGEHDWLQJ
RIWKHGD\EHIRUH
)LUVWKHWULHGEHOORZLQJH\HVELJDQGZKLWH7KHQ%LJJHVWVKRRNKLV
DUPVILVWVEDOOHG
+DULPDGHKLVSDQVWDQGVWLOO,WWRRNHYHU\FDOPLQJLPSXOVHKHFRXOG
PXVWHU
%LJJHVWVZXQJKLVILVWOLNHDFOXE,SDQGXFNHG%LJJHVWPLVVHG
+DULZDVKDYLQJWURXEOHFRQWUROOLQJ,SDQZKRZDQWHGWRIOHH6KHHWVRI
IHDUVKRWXSWKURXJKWKHSDQPLQGKRW\HOORZVLQWKHEOXHEODFNGHSWKV
%LJJHVWFKDUJHGIRUZDUGVODPPLQJ,SDQEDFN+DULIHOWWKHMROWD
VWDEELQJSDLQLQKLVFKHVW+HWRSSOHGEDFNZDUGKLWKDUG
%LJJHVW\RZOHGKLVWULXPSK:DYHGKLVDUPVDWWKHVN\
%LJJHVWZRXOGJHWRQWRSKHVDZ%HDWKLPDJDLQ6XGGHQO\KHIHOWD
GHHSUDZKDWUHG
)URPWKDWUHGVHHWKHKHIHOWKLVJULSRQ,SDQWLJKWHQ+HZDVULGLQJ
ERWKZLWKDQGZLWKLQWKHSDQIHHOLQJLWV UDZUHGIHDURYHUUXQQLQJWKDWZLWK
DQLURQUDJH,SDQVRZQZUDWKIHGEDFNLQWR+DUL7KHWZRIRUPHGDFRQFHUW
DQJHUEXLOGLQJDVLIUHIOHFWHGIURPKDUGZDOOV
+HPLJKWQRWEHWKHVDPHNLQGRISULPDWHEXWKHNQHZ,SDQ1HLWKHURI
WKHPZDVJRLQJWRJHW EHDWHQDJDLQ$QG%LJJHVWZDVQRWJRLQJWRJHW
6KHHODK'RUV
+HUROOHGWRWKHVLGH%LJJHVWKLWWKHJURXQGZKHUHKHKDGEHHQ
,SDQOHDSHGXSDQGNLFNHG%LJJHVW+DUGLQWKHULEV2QFHWZLFH7KHQ
LQWKHKHDG
:KRRSVFULHVGXVWSHEEOHV6KHHODKZDVVWLOOERPEDUGLQJWKHPERWK
,SDQVKLYHUHGZLWKERLOLQJHQHUJ\DQGEDFNHGDZD\
%LJJHVWVKRRNKLVGXVW\KHDG7KHQKHFXUOHGDQGUROOHGHDVLO\XSWRKLV
IHHWIXOORIPXVFXODUJUDFHIDFHDFRQVWULFWHGPDVN7KHSDQVH\HVZLGHQHG
VKRZLQJZKLWHDQGUHG
,SDQ\HDUQHGWRUXQ2QO\+DULVUDJHKHOGKLPLQSODFH
%XWLWZDVDVWDWLFEDODQFHRIIRUFHV,SDQEOLQNHGDV%LJJHVWVKXIIOHG
ZDULO\IRUZDUGWKHELJSDQVFDXWLRQDWULEXWHWRWKHGDPDJH,SDQKDG
LQIOLFWHG
,QHHGVRPHDGYDQWDJH+DULWKRXJKWORRNLQJDURXQG
+HFRXOGFDOOIRUDOOLHV+XQNHUSDFHGQHUYRXVO\QHDUE\
6RPHWKLQJWROG+DULWKDWZRXOGEHDORVLQJVWUDWHJ\+XQNHUZDVVWLOOD
OLHXWHQDQWWR%LJJHVW6KHHODKZDVWRRVPDOOWRPDNHDGHFLVLYHGLIIHUHQFH+H
ORRNHGDWWKHRWKHUSDQVDOOFKDWWHULQJDQ[LRXVO\DQGGHFLGHG+HSLFNHGXS
DURFN
%LJJHVWJUXQWHGLQVXUSULVH3DQVGLGQWXVHURFNVDJDLQVWHDFKRWKHU
5RFNVZHUHRQO\IRUUHSHOOLQJLQYDGHUV+HZDVYLRODWLQJDVRFLDOFRGH
%LJJHVW\HOOHGZDYHGWRWKHRWKHUVSRXQGHGWKHJURXQGKXIIHGDQJULO\
7KHQKHFKDUJHG
+DULWKUHZWKHURFNKDUG,WKLW%LJJHVWLQWKHFKHVWNQRFNHGKLPGRZQ
%LJJHVWFDPHXSIDVWPDGGHUWKDQEHIRUH,SDQVFXUULHGEDFNZDQWLQJ
GHVSHUDWHO\WRUXQ+DULIHOWFRQWUROVOLSSLQJIURPKLPDQGVDZDQRWKHUURFN
6XLWDEOHVL]HWZRSDFHVEDFN+HOHW,SDQWXUQWRIOHHWKHQVWRSSHGKLPDW
WKHVWRQH,SDQGLGQWZDQWWRKROGLW3DQLFUDQWKURXJKKLP
+DULSRXUHGKLVUDJHLQWRWKHSDQIRUFHGWKHORQJDUPVGRZQ+DQGV
JUDEEHGDWWKHVWRQHIXPEOHGJRWLW6KHHUDQJHUPDGH,SDQWXUQWRIDFH
%LJJHVWZKRZDVWKXQGHULQJDIWHUKLP7R+DUL,SDQVDUPFDPHXSLQDFKLQJO\
VORZPRWLRQ+HOHDQHGKHDYLO\LQWRWKHSLWFK7KHURFNVPDFNHG%LJJHVWLQWKH

IDFH
%LJJHVWVWDJJHUHG%ORRGUDQLQWRKLVH\HV,SDQFDXJKWWKHLURQVFHQW
RILWULGLQJRQDSULFNO\VWHQFKRIRXWUDJH
+DULPDGHWKHWUHPEOLQJ,SDQVWRRSGRZQ7KHUHZHUHVRPHVKDSHGVWRQHV
QHDUE\PDGHE\WKHIHUQVWRWULPOHDYHVIURPEUDQFKHV+HSLFNHGXSRQHZLWK
DFKLSSHGHGJH
%LJJHVWVKRRNKLVKHDGGL]]\
,SDQJODQFHGDWWKHVREHUVWLOOIDFHVRIKLVWURRS1RRQHKDGHYHU
XVHGDURFNDJDLQVWDWURRSPHPEHUPXFKOHVV%LJJHVW5RFNVZHUHIRU
6WUDQJHUV
$ORQJVLOHQFHVWUHWFKHG7KHSDQVVWRRGURRWHG%LJJHVWJUXQWHGDQG
SHHUHGLQGLVEHOLHIDWWKHEORRGWKDWVSDWWHUHGLQWRKLVXSWXUQHGKDQG
,SDQVWHSSHGIRUZDUGDQGUDLVHGWKHMDJJHGVWRQHHGJHKHOGRXWZDUG
&UXGHEXWDFXWWLQJHGJH
%LJJHVWIODUHGKLVQRVWULOVDQGFDPHDW,SDQ,SDQVZHSWWKHURFN
WKURXJKWKHDLUEDUHO\PLVVLQJ%LJJHVWVMDZ
%LJJHVWVH\HVZLGHQHG+HKXIIHGDQGSXIIHGWKUHZGXVWKRZOHG,SDQ
VLPSO\VWRRGZLWKWKHURFNDQGKHOGKLVJURXQG%LJJHVWNHSWXSKLVDQJHU
GLVSOD\IRUDORQJZKLOHEXWKHGLGQRWDWWDFN
7KHWURRSZDWFKHG ZLWKLQWHQVHLQWHUHVW6KHHODKFDPHDQGVWRRGEHVLGH
,SDQ,WZRXOGKDYHEHHQDJDLQVWSURWRFROVIRUDIHPDOHWRWDNHSDUWLQPDOH
GRPLQDQFHULWXDOV
+HUPRYHPHQWVLJQDOHGWKDWWKHFRQIURQWDWLRQZDVRYHU%XW+XQNHUZDV
KDYLQJQRQHRIWKDW+HDEUXSWO\KRZOHGSRXQGHGWKHJURXQGDQGVFRRWHGRYHU
WR,SDQVVLGH
+DULZDVVXUSULVHG:LWK+XQNHUPD\EHKHFRXOGKROGWKHOLQHDJDLQVW
%LJJHVW+HZDVQRWIRROHQRXJKWRWKLQNWKDWWKLVRQHVWDQGRIIZRXOGSXW
%LJJHVWWRUHVW7KHUHZRXOGEHRWKHUFKDOOHQJHVDQGKHZRXOGKDYHWRILJKW
WKHP+XQNHUZRXOGEHDXVHIXODOO\
+HUHDOL]HGWKDWKHZDVWKLQNLQJLQWKHVORZPXWHGORJLFRI,SDQ
KLPVHOI+HDVVXPHGWKDWWKHSXUVXLWRISDQVWDWXVPDUNHUVZDVDJLYHQWKH
JUHDWJRDORIKLVOLIH
7KLVUHYHODWLRQVWDUWOHGKLP+HKDGNQRZQWKDWKHZDVGLIIXVLQJLQWR
,SDQVPLQGWDNLQJFRQWURORIVRPHIXQFWLRQVIURPWKHERWWRPXSVHHSLQJ
WKURXJKWKHGHHSO\EXULHGZDOQXWVL]HGJ\UXV,WKDGQRWRFFXUUHGWRKLPWKDW
WKHSDQZRXOGGLIIXVHLQWRKLP:HUHWKH\QRZPDUULHGWR HDFKRWKHULQDQ
LQWHUORFNHGZHEWKDWGLVSHUVHGPLQGDQGVHOI"
+XQNHUVWRRGEHVLGHKLPH\HVJODULQJDWWKHRWKHUSDQVFKHVWKHDYLQJ
,SDQIHOWWKHVDPHZD\PDGO\SLQQHGWRWKHPRPHQW+DULUHDOL]HGWKDWKH
ZRXOGKDYHWRGRVRPHWKLQJEUHDNWKLVF\FOH RIGRPLQDQFHDQGVXEPLVVLRQZKLFK
UXOHG,SDQDWWKHGHHSQHXURORJLFDOOHYHO
+HWXUQHGWR6KHHODK*HWRXW"KHVLJQHG
1R1R+HUSDQIDFHZULQNOHGZLWKDQ[LHW\
/HDYH+HZDYHGWRZDUGWKHWUHHVSRLQWHGWRKHUWKHQKLP
6KHVSUHDGKHUKDQGVLQ DJHVWXUHRIKHOSOHVVQHVV
,WZDVLQIXULDWLQJ+HKDGVRPXFKWRVD\WRKHUDQGKHKDGWRIXQQHOLW
WKURXJKDIHZKXQGUHGVLJQV+HFKLSSHUHGLQDKLJKSLWFKHGYRLFHWU\LQJ
YDLQO\WRIRUFHWKHSDQOLSVDQGSDODWHWRGRWKHZRUNRIVKDSLQJZRUGV
,WZDVQRXVH+HKDGWULHGEHIRUHLGO\EXWQRZKHZDQWHGWREDGO\DQG
QRQHRIWKHHTXLSPHQWZRUNHG,WFRXOGQW(YROXWLRQKDGVKDSHGEUDLQDQG
YRFDOFKRUGVLQSDUDOOHO3DQVJURRPHGSHRSOHWDONHG
+HWXUQHGEDFNDQGUHDOL]HGWKDWKHKDGIRUJRWWHQHQWLUHO\DERXWWKH
VWDWXVVHWWLQJ%LJJHVWZDVJORZHULQJDWKLP+XQNHUVWRRGJXDUGFRQIXVHGDW
KLVQHZOHDGHUVVXGGHQORVVRILQWHUHVWLQWKHFRQIURQWDWLRQDQGWRJHVWXUH
DWDPHUHIHUQWRR
+DULUHDUHGXSDVWDOODVKHFRXOGDQGZDYHGWKHVWRQH7KLVSURGXFHG
WKHGHVLUHGHIIHFW%LJJHVWLQFKHGEDFNDELWDQGWKHUHVWRIWKHWURRSHGJHG

FORVHU+DULPDGH,SDQVWDONIRUZDUGEROGO\%\WKLVWLPHLWGLGQRWWDNHPXFK
HIIRUWIRU,SDQZDVHQMR\LQJWKLVHQRUPRXVO\
%LJJHVWUHWUHDWHG)HUQVLQFKHGDURXQG%LJJHVWDQGDSSURDFKHG,SDQ
,IRQO\,FRXOGOHDYHKLPWRWKHWHUQVGHOLJKWV+DULWKRXJKW
+HWULHGWREDLORXWDJDLQ1RWKLQJ7KHPHFKDQLVPZDVQWZRUNLQJEDFNDW
WKH([FXUVLRQ6WDWLRQ$QGVRPHWKLQJWROGKLPWKDWLWZDVQWJRLQJWRJHW
IL[HG
+HJDYHWKHHGJHGVWRQHWR+XQNHU7KHSDQVHHPHGVXUSULVHGEXWWRRN
LW+DULKRSHGWKHV\PEROLVPRIWKHJHVWXUHZRXOGSHQHWUDWHLQVRPHIDVKLRQ
EHFDXVHKHKDGQRWLPHOHIWWRVSHQGRQSDQSROLWLFV+XQNHUKHIWHGWKHURFN
DQGORRNHGDW,SDQ7KHQKHFULHGLQDUROOLQJSRZHUIXOYRLFHWRQHVULFKLQ
MR\DQGWULXPSK
+DULZDVTXLWHKDSS\WROHW+XQNHUGLVWUDFWWKHWURRS+HWRRN6KHHODK
E\WKHDUPDQGOHGKHULQWRWKHWUHHV1RRQHIROORZHG
+HZDVUHOLHYHG,IDQRWKHUSDQKDGWDJJHGDORQJLWZRXOGKDYH
FRQILUPHGKLVVXVSLFLRQV9DGGRPLJKWEHNHHSLQJWUDFN
6WLOOKHUHPLQGHGKLPVHOIDEVHQFHRIHYLGHQFHLVQRWHYLGHQFHRI
DEVHQFH


7KHKXPDQVFDPHVZLIWO\ZLWKFODWWHUVDQGERRPV
+HDQG6KHHODKKDGEHHQLQWKHWUHHVDZKLOH$W+DULVXUJLQJWKH\KDG
ZRUNHGWKHLUZD\DIHZNOLFNVDZD\IURPWKHWURRS,SDQDQG6KHHODKVKRZHG
ULVLQJDQ[LHW\DWEHLQJVHSDUDWHGIURPWKHLUWURRS+LVWHHWKFKDWWHUHGDQG
KLVH\HVMHUNHGDQ[LRXVO\DWHYHU\VXVSLFLRXVPRYHPHQW7KLVZDVQDWXUDOIRU
LVRODWHGSDQVZHUHIDUPRUHYXOQHUDEOH
7KHKXPDQVODQGLQJGLGQRWKHOS
'DQJHU+DULVLJQHGFXSSLQJDQHDUWRLQGLFDWHWKHQRLVHRIIO\HUV
ODQGLQJQHDUE\
6KHHODKVLJQHG:KHUHJR"
$ZD\
6KHVKRRNKHUKHDGYHKHPHQWO\6WD\KHUH7KH\JHWXV
7KH\ZRXOGLQGHHGEXWQRWLQWKHVHQVHVKHPHDQW+DULFXWKHURII
FXUWO\VKDNLQJKLVKHDG'DQJHU7KH\KDGQHYHULQWHQGHGWRFRQYH\
FRPSOLFDWHGLGHDVZLWKWKHLUVLJQVDQGQRZKHIHOWERWWOHGXSXQDEOHWRWHOO
KHUKLVVXVSLFLRQV
+DULPDGHDNQLIHDFURVVWKURDWJHVWXUH6KHHODKIURZQHG
+HEHQWGRZQDQGPDGH,SDQWDNHDVWLFN+HKDGQRWEHHQDEOHWRPDNH
,SDQZULWHEHIRUHEXWQHFHVVLW\GURYHKLPQRZ6ORZO\KHPDGHWKHURXJKKDQGV
VFUDWFKRXWWKHOHWWHUV,QVRIWORDPKHZURWH:$1786'($'
6KHHODKORRNHGGXPEIRXQGHG'RUVKDGSUREDEO\EHHQRSHUDWLQJXQGHUWKH
DVVXPSWLRQWKDWWKHIDLOXUHWREDLORXWZDVDWHPSRUDU\HUURU,WKDGODVWHG
WRRORQJIRUWKDW
7KHQRLV\LQWUXVLYHODQGLQJFRQILUPHGKLVKXQFK1RRUGLQDU\WHDPZRXOG
GLVWXUEWKHDQLPDOVVRPXFK$QGQRERG\ZRXOGFRPHDIWHUWKHPGLUHFWO\7KH\
ZRXOGIL[WKHLPPHUVLRQDSSDUDWXVZKHUHWKHUHDOSUREOHPZDV
7+(<.((386+(5(.,//3$167+$7.,//686%/$0(21$1,0$/6"
+HKDGEHWWHUDUJXPHQWVWREDFNXSKLVFDVH7KHVORZDFFXPXODWLRQRI
VPDOOGHWDLOVLQ9DGGRVEHKDYLRU6XVSLFLRQVDWOHDVWDERXWWKHVHFXULW\
RIILFHU'RUVWLNWRNZRXOGEORFNWKHRIILFHUIURPRYHUULGLQJWKHORFNVRQ
WKHLULPPHUVLRQFDSVXOHVDQGIURPWUDFLQJWKHFDSVXOHVVLJQDOWR,SDQDQG
6KHHODK
6RWKH\ZHUHIRUFHGWRJRLQWRWKHILHOG/HWWLQJWKHPGLHLQDQ
DFFLGHQWZKLOHLPPHUVHGLQDSDQPLJKWMXVWEHSODXVLEOHHQRXJKWRHVFDSHDQ
LQYHVWLJDWLRQ
7KHKXPDQVZHQWDERXWWKHLUQRLV\EXVLQHVV7KH\ZHUHHQRXJKWKRXJKWR

PDNHKLVFDVH6KHHODKVH\HVQDUURZHGWKHELJEURZVFRZOHG
'RUVWKH'HIHQGHUWRRNRYHU:KHUH"6KHHODKVLJQHG
+HKDGQRVLJQIRUVRDEVWUDFWDQLGHDVRKHVFULEEOHGZLWKWKHVWLFN
$:$<,QGHHGKHKDGQRSODQ
,//&+(&.VKHZURWHLQWKHGLUW
6KHVHWRIIWRZDUGWKHQRLVHRIKXPDQVGHSOR\LQJRQWKHYDOOH\IORRU
EHORZ7RDSDQWKHGLQZDVDGUHDGIXOFODQNLQJLUULWDWLRQ+DULZDVQRWJRLQJ
WROHWKHURXWRIKLVVLJKW6KHZDYHGKLPEDFNEXWKHVKRRNKLVKHDGDQG
IROORZHG
7KHEXVKHVJDYHVKHOWHUDVWKH\JRWDYLHZRIWKHODQGLQJSDUW\EHORZ$
VNLUPLVKOLQHZDVIRUPLQJXSDIHZKXQGUHGPHWHUVDZD\7KH\ZHUHHQFLUFOLQJ
WKHDUHDZKHUHWKHWURRSKDGEHHQ:K\"
+DULVTXLQWHG3DQH\HVLJKWZDVQRWJRRGIRUGLVWDQFH+XPDQVKDGEHHQ
KXQWHUVRQFHDQGRQHFRXOGWHOOE\WKHH\HVDORQH
1RZQHDUO\HYHU\ERG\QHHGHGDUWLILFLDOH\HDGGVE\WKHDJHRIIRUW\
(LWKHUFLYLOL]DWLRQZDVKDUGRQH\HVRUPD\EHKXPDQVLQSUHKLVWRU\KDGQRW
OLYHGORQJHQRXJKIRUH\HWURXEOHWRUREWKHPRIJDPH(LWKHUFRQFOXVLRQZDV
VREHULQJ
7KHWZRSDQVZDWFKHGWKHKXPDQVFDOOLQJWRRQHDQRWKHUDQGLQWKH
PLGGOHRIWKHP+DULVDZ9DGGR(DFKPDQDQGZRPDQFDUULHGDZHDSRQ
%HQHDWKKLVIHDUKHIHOWVRPHWKLQJVWURQJGDUN
,SDQWUHPEOHGZDWFKLQJWKHKXPDQVDVWUDQJHDZH VZHOOLQJLQKLVPLQG
+XPDQVVHHPHGLPSRVVLEO\WDOOLQWKHVKLPPHULQJGLVWDQFHPRYLQJZLWKVWDWHO\
VZD\LQJHOHJDQFH
+DULIORDWHGDERYHWKHVXUJHRIHPRWLRQIHQGLQJRIILWVSRZHUIXO
HIIHFWV7KHUHYHUHQFHIRUWKRVHGLVWDQWWDOOILJXUHVFDPHRXWRIWKHSDQV
GLPSDVW
7KDWVXUSULVHGKLPXQWLOKHWKRXJKWLWRYHU$IWHUDOODQLPDOVZHUH
UHDUHGDQGWDXJKWE\DGXOWVPXFKVPDUWHUDQGVWURQJHU0RVWVSHFLHVZHUHOLNH
SDQVVSULQJORDGHGE\HYROXWLRQWRZRUNLQDGRPLQDQFHKLHUDUFK\$ZHZDV
DGDSWLYH
:KHQWKH\PHWORIW\KXPDQVZLWKRYHUZKHOPLQJSRZHUDEOHWRPHWHRXW
SXQLVKPHQWDQGUHZDUGVOLWHUDOO\OLIHDQGGHDWKVRPHWKLQJOLNHUHOLJLRXV
IHUYRUDURVHLQWKHP)X]]\EXWVWURQJ
$WRSWKDWZDUPWURSLFDOHPRWLRQIORDWHGDVHQVHRIVDWLVIDFWLRQDW
VLPSO\EHLQJ+LVSDQZDVKDSS\WREHDSDQHYHQZKHQVHHLQJDEHLQJRI
FOHDUO\VXSHULRUSRZHUDQGWKRXJKW,URQLF+DULWKRXJKW
+LVSDQKDGMXVWGLVSURYHGDQRWKHUVXSSRVHGO\KXPDQHDUPDUNWKHLUVHOI
FRQJUDWXODWRU\GLVWLQFWLRQRIEHLQJWKHRQO\DQLPDOWKDWFRQJUDWXODWHGLWVHOI
+HMHUNHGKLPVHOIRXWRIKLVDEVWUDFWLRQV+RZKXPDQWRUXPLQDWHHYHQ
ZKHQLQPRUWDOGDQJHU
&$17),1'86(/(&7521,&$//<KHVFUDWFKHGLQWKHVDQG
0$<%(5$1*(6+257VKHZURWH
7KHILUVWVKRWVPDGHWKHPMHUN
7KHKXPDQVKDGIRXQGWKHLUSDQWURRS&ULHVRIIHDUPLQJOHGZLWKWKH
VKDUSKDUVKEDUNVRIEODVWHUV
*R:HJRKHVLJQHG
6KHHODKQRGGHGDQGWKH\FUHSWTXLFNO\DZD\,SDQWUHPEOHG
7KHSDQZDVGHHSO\DIUDLG<HWKHZDVDOVRVDGDVLIUHOXFWDQWWROHDYH
WKH SUHVHQFHRIWKHUHYHUHGKXPDQVKLVVWHSVGUDJJLQJ


7KH\XVHGSDQPRGHVRISDWUROOLQJ
+HDQG'RUVOHWWKHLUEDVLFOHYHOVWDNHRYHUSRUWLRQVRIWKHEUDLQ
H[SHUWDWVLOHQWPRYHPHQWFDUHIXORIHYHU\WZLJ
2QFHWKH\KDGOHIWWKHKXPDQVEHKLQGWKHSDQVJUHZHYHQPRUHFDXWLRXV

7KH\KDGIHZQDWXUDOHQHPLHVEXWWKHIDLQWVFHQWRIDVLQJOHSUHGDWRUFKDQJHG
WKHIHHORIWKHZLOG
,SDQFOLPEHGWDOOWUHHVDQGVDWIRUKRXUVVXUYH\LQJWKHRSHQODQGDKHDG
EHIRUHYHQWXULQJIRUWK+HZHLJKHGWKHHYLGHQFHRISXQJHQWGURSSLQJVIDLQW
SULQWVEHQWEUDQFKHV
7KH\DQJOHGGRZQWKHORQJVORSHRIWKHYDOOH\DQGVWD\HGLQWKHIRUHVW
+DULKDGRQO\JODQFHGDWWKHELJFRORUFRGHGPDSRIWKHDUHDDOOJXHVWV
UHFHLYHGDQGKDGWURXEOHUHFDOOLQJPXFKRILW
)LQDOO\KHUHFRJQL]HGRQHRIWKHGLVWDQWEHDNVKDSHGSHDNV+DULJRW
KLVEHDULQJV'RUVVSRWWHGDVWUHDPVQDNLQJGRZQLQWRWKHPDLQULYHUDQGWKDW
JDYHWKHPIXUWKHUKHOSEXWVWLOOWKH\GLGQRWNQRZZKLFKZD\OD\WKH
([FXUVLRQ 6WDWLRQ2UKRZIDU
7KDWZD\"+DULVLJQHGSRLQWLQJRYHUWKHGLVWDQWULGJH
1R7KDW'RUVLQVLVWHG
)DUQRW
:K\"
7KHZRUVWSDUWRILWDOOZDVWKDWWKH\FRXOGQRWWDON+HFRXOGQRWVD\
FOHDUO\WKDWWKHWHFKQRORJ\RILPPHUVLRQZRUNHGEHVWDWUHDVRQDEO\VKRUW
UDQJHOHVVWKDQDKXQGUHGNOLFNVVD\$QGLWPDGHVHQVHWRNHHSWKHVXEMHFW
SDQVZLWKLQHDV\IO\HUGLVWDQFH&HUWDLQO\9DGGRDQGWKHRWKHUVKDGJRWWHQWR
WKHWURRSTXLFNO\
,VKHSHUVLVWHG
1RW6KHSRLQWHGGRZQWKHYDOOH\0D\EHWKHUH
+HFRXOGRQO\KRSH'RUVJRWWKHJHQHUDOLGHD7KHLUVLJQVZHUHVFDQW\
DQGKHEHJDQWRIHHODEURDGULVLQJLUULWDWLRQ3DQVIHOWDQGVHQVHG
VWURQJO\EXWWKH\ZHUHVROLPLWHG
,SDQH[SUHVVHGWKLVE\WRVVLQJOLPEVDQGVWRQHVEDQJLQJRQWUHHWUXQNV
,WGLGQWKHOSPXFK7KHQHHGWRVSHDNZDVOLNHDSUHVVXUHKHFRXOGQRW
UHOLHYH'RUVIHOWLWWRR6KHHODKFKLSSHUHGDQGJUXQWHGLQIUXVWUDWLRQ
%HQHDWKKLVPLQGKHIHOWWKHVPROGHULQJSUHVHQFHRI,SDQ7KH\KDGQHYHU
EHHQWRJHWKHUWKLVORQJEHIRUHDQGXUJHQF\ZHOOHGXSEHWZHHQWKHWZRFDQWHG
V\VWHPVRIPLQG7KHLUXQHDV\PDUULDJHZDVVKRZLQJJUHDWHUVWUDLQV
6LW4XLHW6KHGLG+HFXSSHGDKDQGWRKLVHDU
%DGFRPH"
1R/LVWHQ,QIUXVWUDWLRQ+DULSRLQWHGWR6KHHODKKHUVHOI%ODQN
LQFRPSUHKHQVLRQLQWKHSDQVIDFH+HVFULEEOHGLQWKHGXVW/($51)5203$16
6KHHODKVPRXWKRSHQHGDQGVKHQRGGHG
7KH\VTXDWWHGLQWKHVKHOWHURISULFNO\EXVKHVDQGOLVWHQHGWRWKH
VRXQGVRIWKHIRUHVW6FXUU\LQJVDQGPXUPXUVFDPHWKURXJKVWURQJO\DV+DUL
UHOD[HGKLVJULSRQWKHSDQ'XVWKXQJLQVODQWHGFDWKHGUDOOLJKWSRXULQJ
GRZQIURPWKHIRUHVWFDQRS\LQULFK\HOORZVKDIWV6FHQWVSXUOHGXSIURPWKH
IRUHVWIORRUFKHPLFDOPHVVHQJHUVWHOOLQJ,SDQRISRWHQWLDOIRRGVVRIWORDP
IRUUHVWLQJEDUNWREHFKHZHG+DULJHQWO\OLIWHG,SDQVKHDGWRJD]HDFURVV
WKHYDOOH\DWWKHSHDNVPXVLQJDQGIHOWDIDLQWWUHPRURIUHVRQDQFH
7R,SDQWKHYDOOH\FDPHZHLJKWHGZLWKVLJQLILFDQFHEH\RQGZRUGV+LV
WURRSKDGLPEXHGLWZLWKEOXQWHPRWLRQVDWWDFKHGWRFOHIWVZKHUHDIULHQG
IHOODQGGLHGZKHUHWKHWURRSIRXQGDKRDUGRIIUXLWVZKHUHWKH\PHWDQG
IRXJKWWZRELJFDWV,WZDVDQLQWULFDWHODQGVFDSHVXIIXVHGZLWKIHHOLQJWKH
SDQPHFKDQLVPRIPHPRU\
+DULIDLQWO\XUJHG,SDQWRWKLQNEH\RQGWKHULGJHOLQHDQGIHOWLQ
UHVSRQVHDGLIIXVHDQ[LHW\+HERUHLQRQWKDWNHUQHODQGDQLPDJHEXUVWLQWR
,SDQVPLQGIULQJHGLQIHDU$UHFWDQJXODUEXONIUDPHGDJDLQVWDFRROVN\
7KH([FXUVLRQ6WDWLRQ
7KHUH+HSRLQWHGIRU'RUV
,SDQKDGVLPSOHVWURQJDSSUHKHQVLYHPHPRULHVRIWKHSODFH+LVWURRS
KDGEHHQWDNHQWKHUHRXWILWWHGZLWKWKHLPSODQWVZKLFKDOORZHGWKHPWREH
ULGGHQWKHQGHSRVLWHGEDFNLQWKHLUWHUULWRU\

)DU'RUVVLJQHG
:HJR
+DUG6ORZ
1RVWD\KHUH7KH\FDWFK
'RUVORRNHGDVVNHSWLFDODVDSDQFRXOGORRN)LJKW"
'LGVKHPHDQILJKW9DGGRKHUH"2UILJKWRQFHWKH\UHDFKHGWKH([FXUVLRQ
6WDWLRQ"1RKHUH7KHUH
'RUVIURZQHGEXWDFFHSWHGWKLV+HKDGQRUHDOSODQRQO\WKHLGHDWKDW
9DGGRZDVUHDG\IRUSDQVRXWKHUHDQGPLJKWQRWEHVRSUHSDUHGIRUWKHPDWWKH
VWDWLRQ7KHUHKHDQG'RUVPLJKWJDLQWKHHOHPHQWRIVXUSULVH+RZKHKDGQR
LGHD
7KH\VWXGLHGHDFKRWKHUHDFKWU\LQJWRFDWFKDJOLPPHURIWKHRWKHULQ
DQDOLHQIDFH6KHVWURNHGKLVHDUOREH'RUVFDOPLQJJHVWXUH6XUHHQRXJKLW
PDGHKLPWLQJOH%XWKHFRXOGVD\VROLWWOH7KHPRPHQWFU\VWDOOL]HGIRUKLP
WKHKRSHOHVVQHVVRIWKHLUVLWXDWLRQ
9DGGR SODLQO\ZDVWU\LQJWRNLOO+DULDQG'RUVWKURXJK,SDQDQG6KHHODK
:KDWZRXOGEHFRPHRIWKHLURZQERGLHV"7KHVKRFNRIH[SHULHQFLQJGHDWKWKURXJK
LPPHUVLRQZDVNQRZQWRSURYHIDWDO7KHLUERGLHVZRXOGIDLOIURPQHXURORJLFDO
VKRFNZLWKRXWHYHUUHJDLQLQJFRQVFLRXVQHVV
+HVDZDWHDUUXQGRZQ6KHHODKVFKHHN6KHNQHZKRZKRSHOHVVPDWWHUV
ZHUHWRR+HVZHSWKHUXSLQKLVDUPVDQGORRNLQJDWWKHGLVWDQWPRXQWDLQV
ZDVVXUSULVHGWRILQGWHDUVLQKLVRZQH\HVDVZHOO


+HKDGQRWFRXQWHGRQWKHULYHU0HQDQLPDOVWKHVHSUREOHPVKHKDG
FRQVLGHUHG7KH\YHQWXUHGGRZQWRWKHVXUJLQJZDWHUVZKHUHWKHIRUHVWJDYHWKH
QHDUHVWSURWHFWLRQDQGWKHVWUHDPEURDGHQHGPDNLQJWKHEHVWSODFHWRIRUG
%XWWKHKHDUW\ULYHUWKDWFKXFNOHGDQGIURWKHGGRZQWKHYDOOH\ZDV
LPSRVVLEOHWRVZLP
2UUDWKHUIRU,SDQWRVZLP+DULKDGEHHQFRD[LQJKLVSDQRQZDUG
FDUHIXOO\SDXVLQJZKHQKLVPXVFOHVVKRRNRUZKHQKHZHWKLPVHOIIURPDQ[LHW\
'RUVZDVKDYLQJVLPLODUWURXEOHDQGLWVORZHGWKHP$QLJKWVSHQWXSLQKLJK
EUDQFKHVVRRWKHGERWKSDQVEXWQRZDWPLGPRPLQJDOOWKHVWUHVVIXOV\PSWRPV
UHWXUQHGDV,SDQSXWRQHIRRWLQWRWKHULYHU&RROVZLIWFXUUHQWV
,SDQGDQFHGEDFNRQWRWKHQDUURZEHDFK\HOSLQJLQGUHDG
*R"'RUV6KHHODKVLJQHG
+DULFDOPHGKLVSDQDQGWKH\WULHGWRJHWLWWRDWWHPSWVZLPPLQJ
6KHHODKGLVSOD\HGRQO\PLQRUDQ[LHW\+DULSOXPEHGWKHVZDPS\GHSWKVRI,SDQV
PHPRU\DQGIRXQGDFOXVWHURIGLVWUHVVFHQWHUHGDURXQGDGLPUHPHPEUDQFHRI
QHDUO\GURZQLQJZKHQDFKLOG:KHQ6KHHODKKHOSHGKLPKHILGJHWHGWKHQ
EROWHGIURPWKHZDWHUDJDLQ
*R6KHHODKZDYHGORQJDUPVXSVWUHDPDQGGRZQVWUHDPDQGVKRRNKHUKHDG
DQJULO\
+DULJXHVVHGWKDWVKHKDGUHDVRQDEO\FOHDUSDQPHPRULHVRIWKHULYHU
ZKLFKKDGQRHDVLHUFURVVLQJVWKDQWKLV+HVKUXJJHGOLIWHGKLVKDQGVSDOP
XS
$ELJKHUGRIJLJDQWHORSHJUD]HGQHDUE\DQGVRPHZHUHFURVVLQJWKHULYHU
IRUEHWWHUJUDVVEH\RQG7KH\WRVVHGWKHLUJUHDWKHDGVDVLIPRFNLQJWKH
SDQV7KHULYHUZDVQRWGHHSEXWWR,SDQLWZDVDZDOO+DULWUDSSHGE\
,SDQVVROLGIHDUVHHWKHGEXWFRXOGGRQRWKLQJ
6KHHODKSDFHGWKHVKRUH6KHKXIIHGLQIUXVWUDWLRQDQGORRNHGDWWKH
VN\VTXLQWLQJ+HUKHDGVQDSSHGDURXQGLQVXUSULVH+DULIROORZHGKHUJD]H$
IO\HUZDVVZRRSLQJGRZQWKHYDOOH\FRPLQJWKHLUZD\
,SDQEHDW6KHHODK WRWKHVKHOWHURIWUHHVEXWQRWE\PXFK/XFNLO\WKH
JLJDQWHORSHKHUGSURYLGHGDGLVWUDFWLRQIRUWKHIO\HU7KH\FRZHUHGLQEXVKHV
DVWKHPDFKLQHKXPPHGRYHUKHDGLQDFLUFXODUVHDUFKSDWWHUQ+DULKDGWRTXHOO

,SDQVPRXQWLQJDSSUHKHQVLRQE\HQYLVLRQLQJVFHQHVRITXLHWDQGSHDFHZKLOHKH
DQG6KHHODKJURRPHGHDFKRWKHU
7KHIO\HUILQDOO\ZHQWDZD\7KH\ZRXOGKDYHWRPLQLPL]HWKHLUH[SRVXUH
QRZ
7KH\IRUDJHGIRUIUXLW+LVPLQGUHYROYHGXVHOHVVO\DQGDVRXU
GHSUHVVLRQVHWWOHGRYHUKLP+HZDVTXLWHQHDWO\FDXJKWLQDWUDSDSDZQLQ
,PSHULDOSROLWLFV:RUVH'RUVZDVLQLWWRR+HZDVQRPDQRIDFWLRQ1RUD
SDQRIDFWLRQHLWKHUKHWKRXJKWGRXUO\
$VKHEURXJKWDIHZRYHUULSHEXQFKHVRIIUXLWEDFNWRWKHLUEXVKHVE\
WKHULYHUKHKHDUGFUDFNLQJQRLVHV+HFURXFKHGGRZQDQGZRUNHGKLVZD\
XSKLOODQGDURXQGWKHVSOLQWHULQJVRXQGV6KHHODKZDVVWULSSLQJEUDQFKHVIURP
WKHWUHHV:KHQKHDSSURDFKHGVKHZDYHGKLPRQLPSDWLHQWO\DFRPPRQSDQ
JHVWXUHUHPDUNDEO\OLNHDKXPDQRQH
6KHKDGDGR]HQWKLFNEUDQFKHVOLQHGXSRQWKHJURXQG6KHZHQWWRD
QHDUE\VSLQGO\WUHHDQGSHHOHGEDUNIURPLWLQORQJVWULSV7KHQRLVHPDGH
,SDQXQHDV\3UHGDWRUVZRXOGEHFXULRXVDWWKLVXQXVXDOVRXQG+HVFDQQHGWKH
IRUHVWIRUGDQJHU
6KHHODKFDPHRYHUWRKLPVODSSHGKLPLQWKHIDFHWRJHWKLVDWWHQWLRQ
6KHZURWHZLWKDVWLFNRQWKHJURXQG5$)7
+DULIHOWSDUWLFXODUO\GHQVHDVKHSLWFKHGLQ2IFRXUVH+DGKLVSDQ
LPPHUVLRQPDGHKLPPRUHVWXSLG"'LGWKHHIIHFWZRUVHQZLWKWLPH"(YHQLIKH
JRWRXWRIWKLVZRXOGKHEHWKHVDPH"0DQ\TXHVWLRQVQRDQVZHUV+HIRUJRW
DERXWWKHPDQGZRUNHG
7KH\ODVKHGEUDQFKHVWRJHWKHUZLWKEDUNFUXGHEXWVHUYLFHDEOH7KH\
IRXQGWZRVPDOOIDOOHQWUHHVDQGXVHGWKHPWRDQFKRUWKHHGJHRIWKHUDIW,
6KHHODKSRLQWHGDQGGHPRQVWUDWHGSXOOLQJWKHUDIW
)LUVWDZDUPXS,SDQOLNHGVLWWLQJRQWKHUDIWLQWKHEXVKHV
$SSDUHQWO\WKHSDQFRXOGQRWVHHWKHSXUSRVHRIWKHUDIW\HW,SDQVWUHWFKHG
RXWRQWKHGHFNRIVDSOLQJVDQGJD]HGXSLQWRWKHWUHHVDVWKH\VZLVKHGLQWKH
ZDUPZLQGV
7KH\FDUULHGWKHDZNZDUGSODQHRIEUDQFKHVGRZQWRWKHULYHUDIWHU
DQRWKHUPXWXDOJURRPLQJVHVVLRQ7KHVN\ZDVILOOHGZLWKELUGVEXWKHFRXOG
VHHQRIO\HUV
7KH\KXUULHG,SDQZDVVNHSWLFDODERXWVWHSSLQJRQWRWKHUDIWZKHQLW
ZDVKDOIZD\LQWRWKHZDWHUEXW+DULFDOOHGXSPHPRULHVILOOHGZLWKZDUP
IHHOLQJDQGWKLVFDOPHGWKHTXLFNWULSSLQJKHDUWKHFRXOGIHHONQRFNLQJLQ
WKHSDQVFKHVW
,SDQVDWJLQJHUO\RQWKHEUDQFKHV6KHHODKFDVWRII
6KHSXVKHGKDUGEXWWKHULYHUVZHSWWKHPTXLFNO\GRZQVWUHDP$ODUP
VSXUWHGLQ,SDQ
+DULPDGH,SDQFORVHKLVH\HV7KDWVORZHGWKHEUHDWKLQJEXWDQ[LHW\
VNLWWHUHGDFURVVWKHSDQPLQGOLNHKHDWOLJKWQLQJIRUNLQJEHIRUHDVWRUP7KH
UDIWVURFNLQJPRWLRQ DFWXDOO\KHOSHGPDNLQJ,SDQFRQFHQWUDWHRQKLVTXHDV\
VWRPDFK2QFHKLVH\HVIOHZRSHQZKHQDIORDWLQJORJVPDFNHGLQWRWKHUDIW
EXWWKHGL]]\LQJVLJKWRIZDWHUDOODURXQGPDGHKLPVTXHH]HWKHPWLJKW
LPPHGLDWHO\
+DULZDQWHGWRKHOSKHUEXWKHNQHZIURPWKHWULSKDPPHUEHDWLQJRI
,SDQVKHDUWWKDWSDQLFKRYHUHGQHDU+HFRXOGQRWHYHQVHHKRZVKHZDVGRLQJ
+HKDGWRVLWEOLQGDQGIHHOKHUVKRYLQJWKHUDIWDORQJ
6KHSDQWHGQRLVLO\VWUXJJOLQJWRNHHSLWSRLQWHGDJDLQVWWKHULYHUV
WXJ6SUD\VSODVKHGRQWRKLP,SDQMHUNHG\HOSHGSDZHGDQ[LRXVO\ZLWKKLV
IHHWDVLIWRUXQ
$VXGGHQOXUFK6KHHODKVJUXQWFXWRIIZLWKDJXUJOHDQGKHIHOWWKH
UDIWVSLQDZD\RQULVLQJFXUUHQWV$VLFNHQLQJVSLQ
,SDQMHUNHGFOXPVLO\WRKLVIHHW(\HVMXPSHGRSHQ
6ZLUOLQJZDWHUWKHUDIWXQVWHDG\+HORRNHGGRZQDQGWKHEUDQFKHVZHUH
FRPLQJDSDUW3DQLFFRQVXPHGKLP+DULWULHGWRSURPRWHVRRWKLQJLPDJHVEXW

WKH\EOHZDZD\EHIRUHZLQGVRIIULJKW
6KHHODKFDPHSDGGOLQJDIWHUWKHUDIWEXWLWZDVSLFNLQJXSVSHHG+DUL
PDGH,SDQJD]HDWWKHIDUVKRUHEXWWKDWZDVDOOKHFRXOGGREHIRUHWKHSDQ
VWDUWHG\HOSLQJDQGVFDPSHULQJRQWKHUDIWWU\LQJWRILQGDVWHDG\SODFH
,WZDVQRXVH7KHEUDQFKHVEURNHIUHHRIWKHLUELQGLQJVDQGFKLOO\
ZDWHUVZHSWRYHUWKHGHFN,SDQVFUHDPHG+HOHDSHGIHOOUROOHGMXPSHGXS
DJDLQ
+DULJDYHXSDQ\LGHDRIFRQWURO7KHRQO\KRSHOD\LQVHL]LQJMXVWWKH
ULJKWPRPHQW7KHUDIWVSOLWGRZQWKHPLGGOHDQGKLVKDOIYHHUHGKHDYLO\WR
WKHOHIW,SDQVWDUWHGDZD\IURPWKHHGJHDQG+DULIHGWKDWPDGHWKHSDQVWHS
IDUWKHU,QWZRERXQGVKHWRRNWKHSDQRIIWKHGHFNDQGLQWRWKHZDWHUWRZDUG
WKHIDUVKRUH
,SDQJDYHZD\WKHQWRSXUHEOLQGSDQLF+DULOHWWKHOHJVDQGDUPV
WKUDVKEXWWRHDFKKHJDYHDSXVKDWWKHULJKWPRPHQW+H FRXOGVZLP,SDQ
FRXOGQW
7KHQHDUDLPOHVVIODLOLQJKHOG,SDQVKHDGRXWRIZDWHUPRVWRIWKH
WLPH+HHYHQJDLQHGDOLWWOHKHDGZD\+DULNHSWIRFXVHGRQWKHFRQYXOVLYH
PRYHPHQWVLJQRULQJWKHFROGZDWHUDQGWKHQ6KHHODKZDVWKHUH
6KHJUDEEHGKLPE\WKHVFUXIIRIWKHQHFNDQGVKRYHGKLPWRZDUGVKRUH
,SDQWULHGWRJUDSSOHZLWKKHUFOLPEXSKHU6KHHODKVRFNHGKLPLQWKHMDZ
+HJDVSHG6KHSXOOHGKLPWRZDUGVKRUH
,SDQZDVVWXQQHG7KLVJDYH+DULDFKDQFHWRJHWWKHOHJVPRYLQJLQD
WKUXVWLQJVWURNH+HZRUNHGDWLWVLQJOHPLQGHGDPRQJWKHUXVKDQGJXUJOH
FKHVWKHDYLQJDQGDIWHUDVHHPLQJHWHUQLW\IHOWSHEEOHVEHQHDWKKLVIHHW
,SDQVFUDPEOHGXSRQWRWKHURFN\EHDFKRQKLVRZQ
+HOHWWKHSDQVODSKLPVHOIDQGGDQFHWRZDUPXS6KHHODKHPHUJHG
GULSSLQJDQGEHGUDJJOHGDQG,SDQVZHSWKHUXSLQKLVWKDQNIXODUPV


:DONLQJZDVZRUNDQG,SDQZDVQWKDYLQJDQ\
+DULWULHGWRPDNHWKHSDQFRYHUJURXQGEXWQRZWKH\KDGWRDVFHQG
GLIILFXOWJXOOLHVVRPHPRVV\DQGURXJK7KH\VWXPEOHGZDGHGFOLPEHGDQG
VRPHWLPHVMXVWFUDZOHGXSWKHVORSHVRIWKHYDOOH\7KHSDQVVQLIIHGRXW
DQLPDOWUDLOVZKLFKKHOSHGDELW
,SDQVWRSSHGRIWHQIRUIRRGRUMXVWWRJD]HLGO\LQWRWKHGLVWDQFH
6RIWWKRXJKWVIOLWWHGOLNHPRWKVWKURXJKWKHIRJJ\PLQGEXR\DQWRQOLTXLG
HPRWLRQDOIORZVZKLFKHGGLHGWRWKHLURZQSXOVH3DQVZHUHQRWPDGHIRU
H[WHQGHGSURMHFWV
7KH\PDGHVORZSURJUHVV1LJKWFDPHDQGWKH\KDGWRFOLPEWUHHV
VQDJJLQJIUXLWRQWKHZD\
,SDQVOHSWEXW+DULGLGQRW&RXOGQRW
7KHLUOLYHVZHUHMXVWDVPXFKDWULVNKHUHDVWKHSDQVEXWWKH
VOXPEHULQJPLQGVKHDQG'RUVDWWHQGHGKDGDOZD\VOLYHGWKLVZD\7RWKHSDQV
WKHIRUHVWQLJKWVHHSHGWKURXJKDVDTXLHWUDLQRILQIRUPDWLRQSURFHVVHGDV
WKH\VOHSW7KHLUPLQGVNH\HGYDJUDQWVRXQGVWRNQRZQQRQWKUHDWVOHDYLQJ
VOXPEHULQWDFW
+DULGLGQRWNQRZWKHVXEWOHVLJQVRIGDQJHUDQGVRPLVWRRNHYHU\UXVWOH
DQGWUHPRULQWKHEUDQFKHVDVGDQJHUDSSURDFKLQJRQVRIWIHHW6OHHSFDPH
DJDLQVWKLVZLOO
,QGDZQVILUVWSDOHJORZ+DULDZRNHZLWKDVQDNHEHVLGHKLP,WFRLOHG
OLNHDJUHHQURSHDURXQGDGHVFHQGLQJEUDQFKJHWWLQJLWVHOILQWRVWULNLQJ
SRVLWLRQ,WH\HGKLPDQG+DULWHQVHG
,SDQGULIWHGXSIURPKLVRZQSURIRXQGVOXPEHU+HVDZWKHVQDNHEXWGLG
QRWUHDFWZLWKDVWDUWOHGMHUNDV+DULIHDUHGKHPLJKW
$ORQJPRPHQWSDVVHGEHWZHHQWKHPDQG,SDQEOLQNHGMXVWRQFH7KHVQDNH
EHFDPHXWWHUO\PRWLRQOHVVDQG,SDQVKHDUWTXLFNHQHGEXWKHGLGQRWPRYH

7KHQWKHVQDNHXQFRLOHGDQGJOLGHGDZD\DQGWKHXQVSRNHQWUDQVDFWLRQZDV
GRQH,SDQZDVXQOLNHO\SUH\WKLVJUHHQVQDNHGLGQRWWDVWHJRRGDQGSDQV
ZHUHVPDUWHQRXJKWREHDERXWRWKHUEXVLQHVV
:KHQ6KHHODKDZRNH WKH\ZHQWGRZQWRDQHDUE\FKXFNOLQJVWUHDPIRUD
GULQNVFDYHQJLQJOHDYHVDQGDIHZFUXQFK\LQVHFWVRQWKHZD\%RWKSDQV
QRQFKDODQWO\SHHOHGDZD\IDWEODFNODQGOHHFKHVZKLFKKDGDWWDFKHGWRWKHPLQ
WKHQLJKW7KHWKLFNHQJRUJHGZRUPVVLFNHQHG+DULEXW,SDQSXOOHGWKHPRII
FDVXDOO\PXFKWKHZD\+DULZRXOGKDYHUHWLHGORRVHQHGVKRHODFHV
/XFNLO\,SDQGLGQRWHDWWKHP+HGUDQNDQG+DULUHIOHFWHGWKDWWKHSDQ
IHOWQRQHHGWRFOHDQKLPVHOI1RUPDOO\+DULYDSRUHGWZLFHDGD\EHIRUH
EUHDNIDVWDQGEHIRUHGLQQHUDQGIHOWLOODWHDVHLIKHVZHDWHGDW\SLFDO
PHULWRFUDW
+HUHKHZRUHWKHVKDJJ\ERG\FRPIRUWDEO\+DGKLVIUHTXHQWFOHDQVLQJV
EHHQDKHDOWKPHDVXUHOLNHWKHSDQVJURRPLQJ"2UDUDUHILHGFLYLOL]HG
KDELW"+HGLPO\UHPHPEHUHGWKDWDVDER\RQ +HOLFRQKHKDGJRQHIRUGD\VLQ
KDSS\VZHDW\SOHDVXUHDQGKDGGLVOLNHGEDWKVDQGVKRZHUV6RPHKRZ,SDQ
UHWXUQHGKLPWRDVLPSOHUVHQVHRIVHOIDWHDVHLQWKHJUXEE\ZRUOG
+LVFRPIRUWGLGQRWODVWORQJ7KH\VLJKWHGUDERRQVXSKLOO
,SDQKDGSLFNHGXSWKHVFHQWEXW+DULGLGQRWKDYHDFFHVVWRWKHSDUW
RIWKHSDQEUDLQWKDWPDGHVFHQWSLFWXUHDVVRFLDWLRQV+HKDGRQO\NQRZQWKDW
VRPHWKLQJGLVWXUEHG,SDQZULQNOLQJWKHNQREE\QRVH7KHVLJKWDWVKRUWUDQJH
MROWHGKLP
7KLFNKLQGTXDUWHUVSURSHOOLQJWKHPLQEULVNVWHSV6KRUWIRUHOLPEV
HQGLQJLQVKDUSFODZV7KHLUODUJHKHDGVVHHPHGWREHPRVWO\WHHWKVKDUSDQG
ZKLWHDERYHVOLWWHGZDU\H\HV$WKLFNEURZQSHOWFRYHUHGWKHPJURZLQJ
EXVK\LQWKHKHDY\WDLOWKH\XVHGIRUEDODQFH
'D\VEHIRUHIURPWKHVDIHW\RIDKLJKWUHH,SDQKDGZDWFKHGVRPHULS
DQGGHYRXUWKHVRIWWLVVXHVRIDJLJDQWHORSHRXWRQWKHJUDVVODQGV7KHVHFDPH
VQLIILQJZRUNLQJGRZQVORSHLQDVNLUPLVKOLQHILYHRIWKHP6KHHODKDQG,SDQ
WUHPEOHGDWWKHVLJKW7KH\ZHUHGRZQZLQGRIWKHUDERRQVDQGVREHDWDUHWUHDW
LQVLOHQFH
7KHUHZHUHQRWDOOWUHHVKHUHMXVWEUXVKDQGVDSOLQJV+DULDQG6KHHODK
DQJOHGDZD\GRZQKLOODQGJRWVRPHGLVWDQFHDQGWKHQVDZDFOHDULQJDKHDG
,SDQSLFNHGXSWKHIDLQWWDQJRIRWKHUSDQVZDIWLQJIURPDFURVVWKHFOHDULQJ
+HZDYHGWRKHU*R$WWKHVDPHPRPHQWDFKRUXVURVHEHKLQGWKHP7KH
UDERRQVKDGFDXJKWWKHVFHQW
7KHLUZKHH]LQJJUXQWVFDPHHFKRLQJWKURXJKWKHWKLFNEXVKHV'RZQVORSH
WKHUHZDVHYHQOHVVFRYHUEXWELJJHUWUHHVOD\EH\RQG7KH\FRXOGFOLPE
WKRVH
,SDQDQG6KHHODKKXUULHGDFURVVWKHEURDGWDQFOHDULQJRQDOOIRXUVEXW
WKH\ZHUHQRWTXLFN6QDUOLQJUDERRQVEXUVWLQWRWKHJUDVVEHKLQGWKHP+DUL
VFDPSHUHGLQWRWKHWUHHVDQGGLUHFWO\LQWRWKHPLGVWRIDSDQWURRS
7KHUHZHUHVHYHUDOGR]HQVWDUWOHGDQGEOLQNLQJ+H\HOOHGLQFRKHUHQWO\
ZRQGHULQJKRZ,SDQZRXOGVLJQDOWRWKHP
7KHQHDUHVWODUJHPDOHWXUQHGEDUHGWHHWKDQGVKULHNHGDQJULO\7KH
HQWLUHSDFNWRRNXSWKHFDOOZKRRSLQJDQGVQDWFKLQJXSVWLFNVDQGURFNV
WKURZLQJWKHPDW,SDQ$SHEEOHKLWKLPRQWKHFKLQDEUDQFKRQWKHWKLJK+H
IOHG6KHHODKDOUHDG\DIHZVWHSVDKHDGRIKLP
7KHUDERRQVFDPHFKDUJLQJDFURVVWKHFOHDULQJ,QWKHLUFODZVWKH\KHOG
VPDOOVKDUSVWRQHV7KH\ORRNHGELJDQGVROLGEXWWKH\VORZHGDWWKHEDUUDJH
RIVFUHHFKHVDQGVTXDZNVFRPLQJIURPWKHWUHHV,SDQDQG6KHHODKEXUVWRXW
LQWRWKHJUDVVRIWKHFOHDULQJDQGWKHSDQVFDPHULJKWDIWHUWKHP7KHUDERRQV
VNLGGHGWRDKDOW
7KHSDQVVDZWKHUDERRQVEXWWKH\GLGQRWVWRSRUHYHQVORZ7KH\ VWLOO
FDPHDIWHU,SDQDQG6KHHODKZLWKPXUGHURXVJOHH
7KHUDERRQVVWRRGIUR]HQWKHLUFODZVZRUNLQJXQHDVLO\
+DULUHDOL]HGZKDWZDVKDSSHQLQJDQGSLFNHGXSDEUDQFKDVKHUDQ

FDOOLQJWR6KHHODK6KHVDZDQGFRSLHGKLP+HUDQVWUDLJKWDWWKHUDERRQV
ZDYLQJWKHEUDQFK,WZDVDQDZNZDUGWZLVWHGROGOLPEXVHOHVVEXWLWORRNHG
ELJ+DULZDQWHGWRVHHPOLNHWKHDGYDQFHJXDUGRIVRPHEDGEXVLQHVV
,QWKHULVLQJFORXGRIGXVWDQGJHQHUDOFKDRVWKHUDERRQVVDZDODUJH
SDUW\RIHQUDJHGSDQVHPHUJLQJIURPWKHIRUHVW7KH EROWHG
6TXHDOLQJWKH\UDQDWIXOOVWULGHLQWRWKHIDUWUHHV
,SDQDQG6KHHODKIROORZHGUXQQLQJZLWKWKHODVWRIWKHLUVWUHQJWK%\
WKHWLPH,SDQUHDFKHGWKHILUVWWUHHVKHORRNHGEDFNDQGWKHSDQVKDGVWRSSHG
KDOIZD\VWLOOVFUHHFKLQJWKHLUYHKHPHQFH
+HVLJQHGWR6KHHODK*R7KH\FXWDZD\DWDVWHHSDQJOHKHDGLQJ
XSKLOO


,SDQQHHGHGIRRGDQGUHVWLIRQO\WRVWRSKLVKHDUWIURPOXUFKLQJDW
HYHU\PLQRUVRXQG6KHHODKDQG,SDQFOXWFKHGHDFKRWKHUKLJKLQDWUHHDQG
FURRQHGDQGSHWWHG
+DULQHHGHGWLPHWRWKLQN$XWRVHUYHUVZHUHNHHSLQJWKHLUERGLHVDOLYH
DWWKHVWDWLRQ'RUVWLNWRNZRXOGGHIHQGWKHORFNVEXWKRZORQJZRXOGD
VHFXULW\RIILFHUWDNHWRJHWDURXQGWKDW"
,WZRXOGEHVPDUWWROHWWKHPVWD\RXWKHUH LQGDQJHUVD\LQJWRWKH
UHVWRIWKHVWDIIWKDWWKHWZRRGGWRXULVWVZDQWHGDUHDOO\ORQJLPPHUVLRQ
/HWQDWXUHWDNHLWVFRXUVH
+LVWKLQNLQJWULJJHUHGMLWWHUVLQ,SDQVRKHGURSSHGWKDWPRGH%HWWHU
WRWKLQNDEVWUDFWO\7KHUHZDVSOHQW\RXWKHUHWKDWQHHGHGXQGHUVWDQGLQJ
+HVXVSHFWHGWKDWWKHDQFLHQWVZKRSODQWHGSDQVDQGJLJDQWHORSHDQGWKH
UHVWKHUHKDGWLQNHUHGZLWKWKHUDERRQVWRVHHLIWKH\FRXOGWXUQ DPRUH
GLVWDQWSULPDWHUHODWLYHLQWRVRPHWKLQJOLNHKXPDQV$SHUYHUVHJRDOLW
VHHPHGWR+DULEXWEHOLHYDEOH6FLHQWLVWVORYHGWRWLQNHU
7KH\KDGJRWWHQDVIDUDVSDFNKXQWLQJEXWUDERRQVKDGQRWRROVEH\RQG
FUXGHO\HGJHGVWRQHVRFFDVLRQDOO\XVHGWRFXWPHDWRQFHWKH\KDGEURXJKWLW
GRZQ
,QDQRWKHUIHZPLOOLRQ\HDUVXQGHUHYROXWLRQVJULQGWKH\PLJKWEHDV
VPDUWDVSDQV:KRZRXOGJRH[WLQFWWKHQ"
$WWKHPRPHQWKHGLGQWPXFKFDUH+HKDGIHOWUHDOUDJHZKHQWKHSDQV
KLVRZQNLQGKDGWXUQHGDJDLQVWWKHPHYHQZKHQWKHUDERRQVFDPHZLWKLQ
YLHZ:K\"
+HZRUULHGDWWKHLVVXHVXUHWKHUHZDVVRPHWKLQJKHUHKHKDGWR
XQGHUVWDQG3V\FKRKLVWRU\KDGWRGHDOZLWKVXFKEDVLFIXQGDPHQWDOLPSXOVHV
7KHSDQVUHDFWLRQKDGEHHQXQFRPIRUWDEO\FORVHWRP\ULDGLQFLGHQWVLQKXPDQ
KLVWRU\
+DWHWKH6WUDQJHU
+HKDGWRIDWKRPWKDWPXUN\WUXWK
3DQVPRYHGLQVPDOOJURXSVGLVOLNLQJRXWVLGHUVEUHHGLQJPRVWO\ZLWKLQ
WKHLUPRGHVWFLUFOHRIDIHZGR]HQ7KLVPHDQWDQ\JHQHWLFWUDLWWKDWHPHUJHG
FRXOGSDVVVZLIWO\LQWRDOOWKHPHPEHUVWKURXJKLQEUHHGLQJ,ILWKHOSHGWKH
EDQGVXUYLYHWKHURXJKUXERIFKDQFHZRXOGVHOHFWIRUWKDWEDQGVVXUYLYDO
)DLUHQRXJK
%XWWKHWUDLWKDGWREHXQGLOXWHG$WURRSRIHVSHFLDOO\JRRGURFN
WKURZHUVZRXOGJHWVZDOORZHGXS LIWKH\MRLQHGDFRPSDQ\RIVHYHUDOKXQGUHG
&RQWDFWZRXOGPDNHWKHPEUHHGRXWVLGHWKHRULJLQDOVPDOOFODQ2XWEUHHGLQJ
WKHLUJHQHWLFKHULWDJHZRXOGJHWZDWHUHGGRZQ
6WULNLQJDEDODQFHEHWZHHQWKHDFFLGHQWVRIJHQHWLFVLQVPDOOJURXSV
DQGWKHVWDELOLW\RIODUJHJURXSVWKDWZDVWKHWULFN6RPHOXFN\WURRSPLJKW
KDYHIRUWXQDWHJHQHVFRQIHUULQJWUDLWVWKDWILWWKHQH[WFKDOOHQJHKDQGHGRXW
E\WKHHYHUDOWHULQJZRUOG7KH\ZRXOGGRZHOO%XWLIWKRVHJHQHVQHYHU
SDVVHGWRPDQ\SDQVZKDWGLGLWPDWWHU"

:LWKVRPHVPDOODPRXQWRIRXWEUHHGLQJWKDWWUDLWJRWVSUHDGLQWRRWKHU
EDQGV'RZQWKURXJKWKHVWUDLQHURIWLPHRWKHUVSLFNHGXSWKHWUDLW,W
VSUHDG
7KLVPHDQWLWZDVDFWXDOO\KHOSIXOWRGHYHORSVPROGHULQJDQLPRVLW\WR
RXWVLGHUVDQLPPHGLDWHVHQVH RIWKHLUZURQJQHVV'RQWEUHHGZLWKWKHP
6RVPDOOEDQGVKHOGIDVWWRWKHLUHFFHQWULFWUDLWVDQGVRPHSURVSHUHG
7KRVHOLYHGRQPRVWSHULVKHG(YROXWLRQDU\MXPSVKDSSHQHGIDVWHULQVPDOO
VHPLLVRODWHGEDQGVZKLFKRXWEUHGVOLJKWO\7KH\NHSWWKHLUJHQHWLFDVVHWVLQ
RQHVPDOOEDVNHWWKHWURRS2QO\RFFDVLRQDOO\GLGWKH\PDWHZLWKDQRWKHU
WURRSRIWHQWKURXJKUDSH
7KHSULFHZDVVWHHSDVWURQJSUHIHUHQFHIRUWKHLURZQWLQ\ORW
7KH\KDWHGFURZGVVWUDQJHUVQRLVH%DQGVRIOHVVWKDQWHQZHUHWRR
YXOQHUDEOHWRGLVHDVHRUSUHGDWRUVDIHZORVVHVDQGWKHJURXSIDLOHG7RR
PDQ\DQGWKH\ORVWWKHFRQFHQWUDWLRQRIFORVHEUHHGLQJ7KH\ZHUHLQWHQVHO\
OR\DOWRWKHLUJURXSHDVLO\LGHQWLI\LQJHDFKRWKHULQWKHGDUNE\VPHOOHYHQ
DWJUHDWGLVWDQFHV%HFDXVH WKH\KDGPDQ\FRPPRQJHQHVDOWUXLVWLFDFWLRQV
ZHUHFRPPRQ
7KH\HYHQKRQRUHGKHURLVPIRULIWKHKHURGLHGKLVVKDUHGJHQHVZHUH
VWLOOSDVVHGRQWKURXJKKLVUHODWLYHV
(YHQLIVWUDQJHUVFRXOGSDVVWKHWHVWVRIGLIIHUHQFHLQDSSHDUDQFHV
PDQQHUVPHOOJURRPLQJHYHQWKHQFXOWXUHFRXOGDPSOLI\WKHHIIHFWV
1HZFRPHUVZLWKGLIIHUHQWODQJXDJHRUKDELWVDQGSRVWXUHZRXOGVHHPUHSXOVLYH
$Q\WKLQJWKDWVHUYHGWRGLVWLQJXLVKDEDQGZRXOGKHOSNHHSKDWUHGVKLJK
(DFKVPDOOJHQHWLFHQVHPEOHZRXOGWKHQEHGULYHQE\QDWXUDOVHOHFWLRQWR
VWUHVVWKHQRQLQKHULWHGGLIIHUHQFHVHYHQDUELWUDU\RQHVGLPO\FRQQHFWHGWR
VXUYLYDOILWQHVVDQGVRWKH\FRXOGHYROYHFXOWXUH$VKXPDQVKDG
'LYHUVLW\LQWKHLUWULEDOLQWULFDFLHVDYRLGHGJHQHWLFZDWHULQJGRZQ
7KH\KHHGHG WKHDQFLHQWFDOORIDORRIZDU\WULEDOLVP
+DUL,SDQVKLIWHGXQHDVLO\0LGZD\WKURXJKKLVWKLQNLQJWKHZRUGWKH\
KDGFRPHLQ+DULVWKLQNLQJWRPHDQKXPDQVDVZHOODVSDQV7KHGHVFULSWLRQ
ILWERWK
7KDWZDVWKHNH\+XPDQVILWLQWRWKHJLJDQWLF(PSLUHGHVSLWHWKHLU
LQQDWHWULEDOLVPWKHLUSDQOLNHKHULWDJH,WZDVDPLUDFOH
%XWHYHQPLUDFOHVFDOOHGRXWIRUH[SODQDWLRQ3DQVFRXOGEHXVHIXO
PRGHOVIRUWKHJHQWU\DQGWKHYDVWFLWL]HQU\WKHWZRFODVVHVHQFRXUDJHGWR
EUHHG
<HWKRZFRXOGWKH(PSLUHSRVVLEO\KDYHNHSWLWVHOIVWDEOHXVLQJVXFK
FUXGHFUHDWXUHVDVKXPDQV"
+DULKDGQHYHUVHHQWKHLVVXHEHIRUHLQVXFKJODULQJDQGKXPEOLQJ
OLJKW
$QGKHKDGQRDQVZHU


7KH\PRYHGRQLQVSLWHRIWKHEOXQWGHHSXQHDVHRIWKHLUSDQV
,SDQVPHOOHGVRPHWKLQJWKDWVHQWKLVH\HVGDUWLQJOHIWDQGULJKW:LWK
WKHIXOOWRRONLWRIVRRWKLQJWKRXJKWVDQGWKHVXEWOHWULFNVKHKDGOHDUQHG
+DULNHSWKLPJRLQJ
6KHHODKZDVKDYLQJPRUHWURXEOH7KHIHPDOHSDQGLGQRWOLNHODERULQJXS
WKHORQJVWHHSJXOOLHVWKDWDSSURDFKHGWKHULGJHOLQH*QDUOHGEXVKHVEORFNHG
WKHLUZD\DQGLWWRRNWLPHWRZRUNDURXQGWKHP)UXLWZDVKDUGHUWRILQGDW
WKHVHDOWLWXGHV
,SDQVVKRXOGHUVDQGDUPVDFKHGFRQVWDQWO\3DQVZDONHGRQDOOIRXUV
EHFDXVHWKHLULPPHQVHO\VWURQJDUPVFDUULHGDSXQLVKLQJZHLJKWSHQDOW\7R
QDYLJDWHERWKWUHHVDQGJURXQGPHDQW\RXFRXOGRSWLPL]HQHLWKHU6KHHODKDQG
,SDQJURDQHGDQGZKLQHGDWWKHVRUHQHVVWKDWQHYHUOHIWIHHWOHJVZULVWV
DQGDUPV3DQVZRXOGQHYHUEHIDUUDQJLQJH[SORUHUV

7RJHWKHUWKH\OHWWKHLUSDQVSDXVHRIWHQWRFUXPEOHOHDYHVDQGVRDNXS
ZDWHUIURPWUHHKROHVDURXWLQHVLPSOHWRROXVH7KH\NHSWVQLIILQJWKHDLU
DSSUHKHQVLYH
7KHVPHOOWKDWGLVWXUEHGERWKSDQVJRWVWURQJHUGDUNHU
6KHHODKZHQWDKHDGDQGZDVWKHILUVWRYHUWKHULGJHOLQH)DUEHORZLQ
WKHYDOOH\WKH\FRXOGPDNHRXWWKHUHFWDQJXODUULJLGLWLHVRIWKH([FXUVLRQ
6WDWLRQ$IO\HUOLIWHGIURPWKHURRIDQGZKLVSHUHGDZD\GRZQWKHYDOOH\QR
GDQJHUWRWKHP
+HUHFDOOHGZKDWVHHPHGDFHQWXU\DJRVLWWLQJRQWKHYHUDQGDKWKHUH
ZLWKGULQNVLQKDQGDQG'RUVVD\LQJ,I\RXVWD\HGRQ7UDQWRU\RXPLJKWEH
GHDG$OVRLI\RXGLGQWVWD\RQ7UDQWRU
7KH\VWDUWHGGRZQWKHVWHHSVORSH7KHLUSDQVH\HVMHUNHGDWHYHU\
XQH[SHFWHGPRYHPHQW$FKLOO\EUHH]HVWLUUHGWKHIHZORZEXVKHVDQGWZLVWHG
WUHHV6RPHKDGDIHDWKHUHGORRNEXUQWDQGVKDWWHUHGE\OLJKWQLQJ$LUPDVVHV
GULYHQXSIURPWKHYDOOH\VIRXJKWDORQJKHUHWKHEUXWHFODVKRISUHVVXUHV
7KLVURFN\ULGJHZDVIDUIURPWKHFRPIRUWDEOHSURYLQFHRISDQV7KH\KXUULHG
$KHDG6KHHODKVWRSSHG
:LWKRXWDVRXQGILYHUDERRQVURVHIURPFRQFHDOPHQWIRUPLQJDQHDWKDOI
FLUFOHDURXQGWKHP
+DULFRXOGQRWWHOOLILWZDVWKHVDPHSDFNDVEHIRUH,IVRWKH\ZHUH
TXLWHFRQVLGHUDEOHSDFNKXQWHUVDEOHWRKROGPHPRU\DQGSXUSRVHRYHUWLPH
7KH\KDGZDLWHGDKHDGZKHUHWKHUHZHUHQRWUHHVWRFOLPE
7KHUDERRQVZHUHHHULO\TXLHWDVWKH\VWURGHIRUZDUGWKHLUFODZV
FOLFNLQJVRIWO\
+HFDOOHGWR6KHHODKDQGPDGHVRPHXWWHUO\IDNHIHURFLRXVQRLVHVDVKH
PRYHGDUPVKLJKLQWKHDLUILVWVVKDNLQJVKRZLQJDELJSURILOH+HOHW,SDQ
WDNHRYHUZKLOHKHWKRXJKW
$UDERRQEDQGFRXOGFHUWDLQO\WDNHWZRLVRODWHGSDQV7RVXUYLYHWKLV
WKH\KDGWRVXUSULVHWKHUDERRQVIULJKWHQWKHP
+HORRNHGDURXQG7KURZLQJURFNVZDVQWJRLQJWRGRWKHWULFNKHUH:LWK
RQO\DYDJXHQRWLRQRIZKDWKHZDVGRLQJKHVKXIIOHGOHIWWRZDUGDWUHHWKDW
KDGEHHQVSOLQWHUHGE\OLJKWQLQJ
6KHHODKVDZKLVPRYHDQGJRWWKHUHILUVWVWULGLQJHQHUJHWLFDOO\,SDQ
SLFNHGXSWZRVWRQHVDQGIOXQJWKHP DWWKHQHDUHVWUDERRQ2QHVWUXFNRQWKH
IODQNEXWGLGQRUHDOKDUP
7KHUDERRQVEHJDQWRWURWFLUFOLQJ7KH\FDOOHGWRHDFKRWKHULQ
ZKHH]LQJJUXQWV
6KHHODKOHDSHGRQDGULHGRXWVKDUGRIWKHWUHH,WVQDSSHG6KH
VQDWFKHGLWXSDQG+DULVDZKHUSRLQW,WZDVDVWDOODVVKHZDVDQGVKH
FUDGOHGLW
7KHODUJHVWUDERRQJUXQWHGDQGWKH\DOOORRNHGDWHDFKRWKHU
7KHUDERRQVFKDUJHG
7KHQHDUHVWRQHFDPHDW6KHHODK6KHFDXJKWLWRQWKHVKRXOGHUZLWKWKH
EOXQWSRLQWDQGLWVTXHDOHG
+DULJUDEEHGDVWDONRIWKHVKDWWHUHGWUHHWUXQN+HFRXOGQRWZUHQFKLW
IUHH$QRWKHUVTXHDOIURPEHKLQGKLPDQG6KHHODKZDVJLEEHULQJLQDKLJK
IULJKWHQHGYRLFH
,WZDVEHVWWROHWWKHSDQVUHOHDVHWHQVLRQYRFDOO\EXWKHFRXOGIHHO
WKHIHDUDQGGHVSHUDWLRQLQWKH WRQHVDQGNQHZLWFDPHIURP'RUVWRR
+HFDUHIXOO\VHOHFWHGDVPDOOHUVKDUGRIWKHWUHH:LWKERWKKDQGVKH
WZLVWHGLWIUHHXVLQJKLVZHLJKWDQGELJVKRXOGHUPXVFOHVFUDFNLQJLWVR
WKDWLWFDPHDZD\ZLWKDSRLQW
/DQFHV7KDWZDVWKHRQO\ZD\WRVWD\DZD\IURPWKHUDERRQFODZV3DQV
QHYHUXVHGVXFKDGYDQFHGZHDSRQV(YROXWLRQKDGQWJRWWHQDURXQGWRWKDW
OHVVRQ\HW
7KHUDERRQVZHUHDOODURXQGWKHPQRZ+HDQG6KHHODKVWRRGEDFNWREDFN
+HEDUHO\JRWKLVIHHWSODFHGZKHQKHKDGWRWDNHWKHUXVKRIDELJVZDUWK\

UDERRQ
7KHUDERRQVKDGQRWJRWWHQWKHLGHDRIWKHODQFH\HW,WVODPPHGLQWR
WKHSRLQWMHUNHGEDFN$IHDUVRPHEHOORZ,SDQZHWKLPVHOIZLWKIHDUEXW
VRPHWKLQJLQ+DULNHSWKLPLQFRQWURO
7KHUDERRQEDFNHGRIIZKLPSHULQJ,WWXUQHGWRUXQ,QPLGVWULGHLW
VWRSSHG)RUDORQJVXVSHQGHGPRPHQWWKHUDERRQKHVLWDWHGWKHQWXUQHGEDFN
WRZDUG+DUL
,WWURWWHGIRUZDUGZLWKQHZFRQILGHQFH7KHRWKHUUDERRQVZDWFKHG,W
ZHQWWRWKHVDPHWUHH+DULKDGXVHGDQGZLWKDVLQJOHKHDYHEURNHRIID
ORQJVOHQGHUVSLNHRIZRRG7KHQLWFDPHWRZDUG+DULVWRSSHGDQGZLWKRQH
FODZKHOGWKHVWLFNIRUZDUG:LWKDWRVVRILWVELJKHDGLWORRNHGDWKLPDQG
KDOIWXUQHGSXWWLQJRQHIRRWIRUZDUG
:LWKDVKRFN+DULUHFRJQL]HGWKHVZRUGSOD\SRVLWLRQ
9DGGRKDGXVHGLW9DGGRZDVULGLQJWKLVUDERRQ
,WPDGHSHUIHFWVHQVH7KLVZD\WKHSDQVGHDWKV
ZRXOGEHTXLWH
QDWXUDO9DGGRFRXOGVD\WKDWKHZDVGHYHORSLQJUDERRQULGLQJDVDQHZ
FRPPHUFLDODSSOLFDWLRQRI WKHVDPHKDUGZDUHWKDWZRUNHGIRUSDQULGLQJ
9DGGRFDPHIRUZDUGDFDUHIXOVWHSDWDWLPHKROGLQJWKHORQJODQFH
EHWZHHQWZRFODZVQRZ+HPDGHWKHHQGPRYHLQDFLUFOH0RYHPHQWZDVMHUN\
FODZVZHUHFUXGHFRPSDUHGZLWKSDQKDQGV%XWWKHUDERRQZDVVWURQJHU
,WFDPHDWKLPZLWKDTXLFNIHLQWWKHQDWKUXVW+DULEDUHO\PDQDJHGWR
GRGJHVLGHZD\VZKLOHKHEUXVKHGWKHODQFHDVLGHZLWKKLVVWLFN9DGGR
UHFRYHUHGTXLFNO\DQGFDPHIURP+DULVOHIW-DEIHLQWMDEIHLQW+DUL
FDXJKWHDFKZLWKDVZRRSRI KLVVWLFN
7KHLUZRRGHQVZRUGVVPDFNHGDJDLQVWHDFKRWKHUDQG+DULKRSHGKLVGLGQW
VQDS9DGGRKDGJRRGFRQWURORIKLVUDERRQ,WGLGQRWWU\WRIOHHDVLWKDG
EHIRUH
+DULZDVNHSWEXV\VODSSLQJDVLGH9DGGRVWKUXVWV+HKDGWRKDYHVRPH
RWKHUDGYDQWDJHRUWKHVXSHULRUVWUHQJWKRIWKHUDERRQZRXOGHYHQWXDOO\WHOO
+DULFLUFOHGGUDZLQJ9DGGRDZD\IURP6KHHODK7KHRWKHUUDERRQVZHUHNHHSLQJ
KHUWUDSSHGEXWQRWDWWDFNLQJ$OODWWHQWLRQULYHWHGRQWKHWZRILJXUHVDV
WKH\WKUXVWDQGSDUULHG
+DULGUHZ9DGGRWRZDUGDQRXWFURSSLQJ7KHUDERRQZDVKDYLQJWURXEOH
KROGLQJLWVODQFHVWUDLJKWDQGKDGWRNHHSORRNLQJGRZQDWLWVFODZVWRJHW
WKHPULJKW7KLVPHDQWLWSDLGOHVVDWWHQWLRQWRZKHUHLWVWZRKRRYHVIRXQG
WKHLUIRRWLQJ+DULVODSSHGDQGMDEEHGDQG NHSWPRYLQJPDNLQJWKHUDERRQVWHS
VLGHZD\V,WSXWDELJKRRIGRZQDPRQJVRPHDQJXODUVWRQHVWHHWHUHGWKHQ
UHFRYHUHG
+DULPRYHGOHIW,WVWHSSHGDJDLQDQGLWVKRRIWXUQHGDQGLWVWXPEOHG
+DULZDVRQLWLQDQLQVWDQW+HWKUXVWIRUZDUGDVWKHUDERRQORRNHGGRZQ
IHHWVFUDPEOLQJIRUSXUFKDVH+DULFDXJKWWKHUDERRQIXOOZLWKKLVSRLQW
+HSXVKHGKDUG7KHRWKHUUDERRQVOHWRXWDPRDQLQJVRXQG
6QRUWLQJLQUDJHWKHUDERRQWULHGWRJHWRIIWKHSRLQW+DULPDGH,SDQ
VWHSIRUZDUGDQGWKUXVWWKHWLSIDUWKHULQWRWKHUDERRQ7KHWKLQJZDLOHG
KRDUVHO\,SDQSOXQJHGDJDLQ%ORRGVSXUWHGIURPLWVSDWWHULQJWKHGXVW,WV
NQHHVEXFNOHGDQGLWVSUDZOHG
+DULVKRWDJODQFHRYHUKLVVKRXOGHU7KHRWKHUVKDGVXUJHGLQWRDFWLRQ
6KHHODKZDVKROGLQJRIIWKUHH VFUHHFKLQJDWWKHPVRORXGO\LWXQQHUYHGHYHQ
KLP6KHKDGDOUHDG\ZRXQGHGRQH%ORRGGULSSHGGRZQLWVEURZQFRDW
%XWWKHRWKHUVGLGQRWFKDUJH7KH\FLUFOHGDQGJURZOHGDQGVWDPSHG
WKHLUIHHWEXWFDPHQRFORVHU7KH\ZHUHFRQIXVHG/HDUQLQJWRR+HFRXOGVHH
WKHTXLFNEULJKWH\HVVWXG\LQJWKHVLWXDWLRQWKLVIUHVKPRYHLQWKH
SHUSHWXDOZDU
6KHHODKVWHSSHGRXWDQGSRNHGWKHQHDUHVWUDERRQ,WODXQFKHGLWVHOIDW
KHULQDVQDUOLQJILWDQGVKHVWXFNLWDJDLQGHHSHU,W\HOSHGDQGWXPHGDQG
UDQ
7KDWGLGLWIRUWKHRWKHUV7KH\DOOWURWWHGRIIOHDYLQJWKHLUIHOORZ

EOHDWLQJRQWKHJURXQG,WVGD]HGH\HVZDWFKHGLWVEORRGWULFNOHRXW,WVH\HV
IOLFNHUHGDQG9DGGRZDVJRQH7KHDQLPDOVOXPSHG
:LWKGHOLEHUDWLRQ+DULSLFNHGXSDURFNDQGEDVKHGLQWKHVNXOO,WZDV
PHVV\ZRUNDQGKHVDWEDFNLQVLGH,SDQDQGOHWWKHGDUNVPROGHULQJSDQDQJHU
FRPHRXW
+HEHQWRYHUDQGVWXGLHGWKHUDERRQEUDLQ$ILQHVLOYHU\ZHEELQJFDSSHG
WKHUXEEHU\FRQYROXWHGEDOO,PPHUVLRQFLUFXLWU\
+HWXUQHGDZD\IURPWKH VLJKWDQGRQO\WKHQVDZWKDW6KHHODKZDVKXUW


7KHVWDWLRQFURZQHGDUXJJHGKLOO6WHHSJXOOLHVJDYHWKHKLOOVLGHWKH
ORRNRIDZHDU\OLQHGIDFH:LU\EXVKHVWKURQJHGWKHORZHUUHDFKHV
,SDQSXIIHGDVKHZRUNHGKLVZD\WKURXJKWKHUDZODQGFXWE\HURVLRQ,Q
SDQYLVLRQWKHQLJKWZDVHHULHDVKLPPHULQJYLVWDRISDOHJUHHQVDQGEOXH
WLQJHGVKDGRZV7KHKLOOZDVDQXDQFHLQWKHJUHDWHUVORSHRIDJUDQG
PRXQWDLQEXWSDQYLVLRQFRXOGQRWPDNHRXWWKHGLVWDQWIHDWXUHV3DQVOLYHG
LQDFORVHLPPHGLDWHZRUOG
$KHDGKHFRXOGVHHFOHDUO\WKHJORZLQJEODQNZDOOULQJLQJWKHVWDWLRQ
,WZDVPDVVLYHILYHPHWHUVWDOO$QGKHUHPHPEHUHGIURPKLVWRXULVWWRXURI
WKHSODFHULPPHGZLWKEURNHQJODVV
%HKLQGKLPFDPHJDVSVDV6KHHODKODERUHGXSWKHVORSH7KHZRXQGLQKHU
VLGHPDGHKHUJDLWVWLIIIDFHULJLG6KHUHIXVHGWRKLGHEHORZ7KH\ZHUH
ERWKQHDUH[KDXVWLRQDQGWKHLUSDQVZHUHEDONLQJGHVSLWHWZRVWRSVIRUIUXLW
DQGJUXEVDQGUHVW
7KURXJKWKHLUIHHEOHVLJQYRFDEXODU\WKHLUIDFLDOJULPDFLQJDQG
ZULWLQJLQWKHGXVWWKH\KDGGLVFXVVHGWKHSRVVLELOLWLHV7ZRSDQVZHUH
YXOQHUDEOHRXWKHUH7KH\FRXOGQRWH[SHFWWREHDVOXFN\DVZLWKWKHUDERRQV
QRWWLUHGDQGLQVWUDQJHWHUULWRU\
7KHEHVWWLPHWRDSSURDFKWKHVWDWLRQZDVDWQLJKW:KRHYHUKDG
HQJLQHHUHGWKLVZRXOGQRWZDLWIRUHYHU7KH\KDGKLGGHQIURPIO\HUVWZLFHPRUH
VLQFHPRUQLQJ5HVWLQJWKURXJKWKHQH[WGD\ZDVDQLQYLWLQJRSWLRQEXW+DUL
IHOWDIRUHERGLQJSUHVVKLPRQZDUG
+HDQJOHGXSWKHKLOOVLGHZDWFKLQJIRUHOHFWURQLFWULSZLUHV2IVXFK
WHFKQLFDOPDWWHUVKHNQHZQRWKLQJ+HZRXOGKDYHWRNHHSDORRNRXWIRUWKH
REYLRXVDQGKRSHWKDWWKHVWDWLRQZDVQRWZLUHGIRUWKLQNLQJWUHVSDVVHUV
3DQYLVLRQZDVVKDUSDQGFOHDU LQGLPOLJKWIRUQHDUE\REMHFWVEXWKH
FRXOGILQGQRWKLQJ
+HFKRVHDVSRWE\WKHZDOOVKDGRZHGE\WUHHV6KHHODKSDQWHGLQVKDOORZ
JDVSVDVVKHDSSURDFKHG/RRNLQJXSWKHZDOOVHHPHGLPPHQVH,PSRVVLEOH
6ORZO\KHVXUYH\HGWKHODQGDURXQGWKHP1RVLJQRIDQ\PRYHPHQW7KH
SODFHVPHOOHGSHFXOLDUWR,SDQVRPHKRZZURQJ0D\EHDQLPDOVVWD\HGDZD\IURP
WKHDOLHQFRPSRXQG*RRGWKDWZRXOGPDNHVHFXULW\LQVLGHOHVVDOHUW
7KHZDOOZDVSROLVKHGFRQFUHWH$WKLFNOLSMXWWHGRXWDWWKHWRS
PDNLQJFOLPELQJLWKDUGHU
6KHHODKJHVWXUHGWRZKHUHWUHHVJUHZQHDUWKHZDOO6WXPSVQHDUHUVKRZHG
WKDWWKHEXLOGHUVKDGWKRXJKWDERXWDQLPDOVOHDSLQJDFURVVIURPEUDQFKHVEXW
VRPHZHUHWDOOHQRXJKDQGKDGEUDQFKHVZLWKLQDIHZPHWHUVRIWKHWRS
&RXOGDSDQPDNHWKHGLVWDQFH"1RWOLNHO\HVSHFLDOO\ZKHQWLUHG
6KHHODKSRLQWHGWRKLPDQGEDFNWRKHUWKHQKHOGKHUKDQGVRXWDQGPDGHD
VZLQJLQJPRWLRQ&RXOGWKH\VZLQJDFURVVWKHGLVWDQFH"
+HVWXGLHGKHUIDFH7KHGHVLJQHUZRXOGQRWDQWLFLSDWHWZRSDQV
FRRSHUDWLQJWKDWZD\+HVTXLQWHGXSDWWKHWRS7RRKLJKWRFOLPEHYHQLI
6KHHODKVWRRGRQKLVVKRXOGHUV
<HVKHVLJQHG
$IHZPRPHQWVODWHUKHUKDQGVKROGLQJKLVIHHWDERXWWROHWJRRIKLV
EUDQFKKHKDGVHFRQGWKRXJKWV

,SDQGLGQWPLQGWKLVELWRIFDOLVWKHQLFVDQGLQIDFWZDVKDSS\WREH
EDFNLQDWUHH%XW+DULVKXPDQMXGJPHQWVWLOONHSWVKRXWLQJWKDWKHFRXOG
QRWSRVVLEO\GRLW1DWXUDOSDQWDOHQWFRQIOLFWHGZLWKKXPDQFDXWLRQ
/XFNLO\KHGLGQRWKDYHPXFKWLPHWRLQGXOJHLQVHOIGRXEW6KHHODK
\DQNHGKLPRIIWKHEUDQFK+HIHOOKHOGRQO\E\KHUKDQGV
6KHKDGZUDSSHGKHUIHHWVHFXUHO\DURXQGDWKLFNEUDQFKDQGQRZEHJDQWR
RVFLOODWHKLPOLNHDZHLJKWRQDVWULQJ6KHVZXQJKLPEDFNDQGIRUWK
LQFUHDVLQJWKHDPSOLWXGH%DFNIRUWKXSGRZQ FHQWULIXJDOSUHVVXUHLQKLV
KHDG7R,SDQLWZDVXQUHPDUNDEOH7R+DULLWZDVDZKHHOLQJZRUOGRIKHDUW
VWRSSLQJZKLUOV
6PDOOEUDQFKHVEUXVKHGKLPDQGKHZRUULHGDERXWQRLVHDQGWKHQIRUJRW
DERXWWKDWEHFDXVHKLVKHDGZDVFRPLQJXSOHYHOZLWKWKHWRSRIWKHZDOO
7KHFRQFUHWHOLSZDVURXQGHGRIIRQWKHLQVLGHVRQRKRRNFRXOGILQGD
JULS
+HVZXQJEDFNGRZQKHDGSOXQJLQJWRZDUGWKHJURXQG7KHQXSLQWRWKH
ORZHUEUDQFKHVWZLJVVODSSLQJKLVIDFH
2QWKHQH[WVZLQJKHZDVKLJKHU$OODORQJWKHWRSRIWKHZDOOWKLFN
JODVVJOLQWHG9HU\SURIHVVLRQDO
+HEDUHO\KDGWLPHWRUHDOL]HDOOWKLVZKHQVKHOHWKLPJR
+HDUFHGXSKDQGVVWUHWFKHGRXWDQGEDUHO\FDXJKWWKHOLS,ILWKDG
QRWSURWHFWLYHO\SURWUXGHGRXWKHZRXOGKDYHPLVVHG
+HOHWKLV ERG\VODPDJDLQVWWKHVLGH+LVIHHWVFUDEEOHGIRUSXUFKDVH
DJDLQVWWKHVKHHUIDFH$IHZWRHVJRWKROG+HKHDYHGXSPXVFOHVEXQFKLQJ
DQGRYHU1HYHUEHIRUHKDGKHDSSUHFLDWHGKRZPXFKVWURQJHUDSDQFRXOGEH1R
PDQFRXOGKDYHPDGHLWKHUH
+HVFUDPEOHGXSFXWWLQJKLVDUPDQGKDXQFKRQJODVV,WZDVDGHOLFDWH
EXVLQHVVJHWWLQJWRKLVIHHWDQGILQGLQJDSODFHWRVWDQG
$VXUJHRIWULXPSK+HZDYHGWR6KHHODKLQYLVLEOHLQWKHWUHH
)URPKHUHRQLWZDVXSWRKLP+HUHDOL]HGVXGGHQO\WKDWWKH\FRXOGKDYH
IDVKLRQHGVRPHVRUWRIURSHW\LQJWRJHWKHUYLQHV7KHQKHFRXOGOLIWKHUXS
KHUH*RRGLGHDWRRODWH
1RSRLQWLQGHOD\LQJ7KHFRPSRXQGZDVSDUWO\YLVLEOHWKURXJKWKHWUHHV
DIHZOLJKWVEXUQLQJ8WWHUO\VLOHQW7KH\KDGZDLWHGXQWLOWKHQLJKWZDV
DERXWKDOIRYHUKHKDGQRWKLQJEXW,SDQVJXWIHHOLQJVWRWHOOKLPZKHQ
+HORRNHGGRZQ-XVWEH\RQGKLVWRHVUD]RUZLUHJOHDPHGVHWLQWRWKH
FRQFUHWH&DUHIXOO\KHVWHSSHGEHWZHHQWKHVKLQ\OLQHV7KHUHZDVURRPDPRQJ
WKHVKDUSJODVVWHHWKWRVWDQG$WUHHEORFNHGKLVYLVLRQDQGKHFRXOGVHH
OLWWOHEHORZKLPLQWKHGLPJORZIURPWKHVWDWLRQ$WOHDVWWKDWPHDQWWKH\
FRXOGQWVHHKLPHLWKHU
6KRXOGKHMXPS"7RRKLJK7KHWUHHWKDWKLGKLPZDVFORVHEXWKHFRXOG
QRWVHHLQWRLW+HVWRRGDQGWKRXJKWEXWQRWKLQJFDPHWRKLP0HDQZKLOH
6KHHODKZDVEHKLQGKLPDORQHDQGKHKDWHGOHDYLQJKHUZKHUHGDQJHUVZDLWHG
WKDWKHGLGQRWHYHQNQRZ
+HZDVWKLQNLQJOLNHDPDQDQGIRUJHWWLQJWKDWKHKDGWKHFDSDELOLW\RI
DSDQ
*R+HOHDSHG7ZLJVVQDSSHGDQGKHSOXQJHGKHDYLO\LQVKDGRZV%UDQFKHV
VWDEEHGKLVIDFH+HVDZDGDUNVKDSHWRKLVULJKWDQGVRFXUOHGKLVOHJV
URWDWHGKDQGVRXWDQGVQDJJHGDEUDQFK+LVKDQGVFORVHGHDVLO\DURXQGLW
DQGKHUHDOL]HGLWZDVWRRWKLQ WRRWKLQ
,WVQDSSHG7KHFUDFNFDPHOLNHDWKXQGHUEROWWRKLVHDUV+HIHOO
OHWWLQJJRRIWKHEUDQFK+LVEDFNKLWVRPHWKLQJKDUGDQGKHUROOHGJUDSSOLQJ
IRUDKROG+LVILQJHUVFORVHGDURXQGDWKLFNEUDQFKDQGKHVZXQJIURPLW
)LQDOO\KHOHWRXWDJDVS
/HDYHVUXVWOHGEUDQFKHVVZD\HG1RWKLQJPRUH
+HZDVKDOIZD\XSDWUHH$FKHVVSURXWHGLQKLVMRLQWVDJDOD[\RI
VPDOOSDLQV
+DULUHOD[HGDQGOHW,SDQPDVWHUWKHGHVFHQW+HKDGPDGHIDUWRRPXFK

QRLVHIDOOLQJLQWKHWUHHEXWWKHUHZDVQRVLJQRIDQ\PRYHPHQWDFURVVWKH
EURDGODZQVEHWZHHQKLPDQGWKHELJOXPLQRXVVWDWLRQ
+HWKRXJKWRI'RUVDQGZLVKHGWKHUHZHUHVRPHZD\KHFRXOGOHWKHUNQRZ
KHZDVLQVLGHQRZ7KLQNLQJRIKHUKHPHDVXUHGZLWKKLVH\HWKHGLVWDQFHV
IURPQHDUE\WUHHVPHPRUL]LQJWKHSDWWHUQVRWKDWKHFRXOGILQGWKHZD\EDFN
DWDGHDGUXQLIKHKDGWR
1RZZKDW"+HGLGQWKDYHDSODQ
+DULJHQWO\XUJHG,SDQZKRZDVQHUYRXVDQGWLUHGEDUHO\FRQWUROODEOH
LQWRDWULDQJXODUSDWWHUQRIEXVKHV,SDQVPLQGZDVOLNHDVWRUP\VN\VSOLW
E\VNLWWHULQJOLJKWQLQJ1RWWKRXJKWVSUHFLVHO\PRUHOLNHNQRWVRIHPRWLRQ
IRUPLQJDQGIODVKLQJDURXQGFULVSNHUQHOVRIDQ[LHW\3DWLHQWO\+DULVXPPRQHG
XSVRRWKLQJLPDJHVJHWWLQJ,SDQVEUHDWKLQJVORZHGDQGKHDOPRVWPLVVHGWKH
ZKLVSHU\VRXQG
1DLOVVFUDEEOLQJRQDVWRQHZDONZD\6RPHWKLQJUXQQLQJIDVW
7KH\FDPHDURXQGWKHWULDQJOHSHDNRIEXVKHV%XQFKHGPXVFOHVVOHHN
VNLQVWXEE\OHJVHDWLQJXSWKHUHPDLQLQJGLVWDQFH7KH\ZHUHZHOOWUDLQHGWR
VHHNDQGNLOOVRXQGOHVVO\ZLWKRXWZDUQLQJ
7R,SDQWKHPRQVWHUVZHUHDOLHQWHUULI\LQJ,SDQVWHSSHGEDFNLQSDQLF
EHIRUHWKHWZRRQUXVKLQJEXOOHWVRIPXVFOHDQGERQH%ODFNJXPVSHHOHGEDFN
IURPZKLWHWHHWKEDUHGEHQHDWKPDGH\HV
7KHQ+DULIHOWVRPHWKLQJVKLIWLQ,SDQ$QFLHQWLQVWLQFWLYHUHVSRQVHV
VWRSSHGKLVUHWUHDWWHQVHGWKHERG\1RWLPHWRIOHHVRILJKW
,SDQVHWKLPVHOIEDODQFHG7KHWZRPLJKWJRIRUKLVDUPVVRKHGUHZ
WKHPEDFNFURXFKLQJWREULQJKLVIDFHGRZQ
,SDQKDGGHDOWZLWKIRXUOHJJHGSDFNKXQWHUVEHIRUHVRPHZKHUHIDUEDFN
LQDQFHVWUDOPHPRU\DQGNQHZLQQDWHO\WKDWWKH\OLQHGXSRQDYLFWLPV
RXWVWUHWFKHGOLPEZRXOGJRIRUWKHWKURDW7KHFDQLQHVZDQWHGWRERZOKLP
RYHUVODVKRSHQWKHMXJXODUULSDQGVKUHGLQWKHYLWDOVHFRQGVRIVXUSULVH
7KH\JDWKHUHGWKHPVHOYHVEXQGOHVRIVZLIWVLQHZUXQQLQJQHDUO\
VKRXOGHUWRVKRXOGHUELJKHDGVXSDQGOHDSHG
,QDLUWKH\ZHUHFRPPLWWHG,SDQNQHZ$QGRSHQ,SDQEURXJKWERWK
KDQGVXSWRJUDVSWKHFDQLQHVIRUHOHJV
+HWKUHZKLPVHOIEDFNZDUGKROGLQJWKHOHJVWLJKWKLVKDQGVEDUHO\
EHQHDWKWKHMDZV7KHZLUHKRXQGVRZQPRPHQWXPFDUULHGWKHPRYHUKLVKHDGDV
KHUROOHGEDFNZDUG
,SDQUROOHGRQWRKLVEDFN\DQNLQJKDUG7KHVXGGHQVQDSVODPPHGWKH
FDQLQHVIRUZDUG7KH\FRXOGQRWJHWWKHLUKHDGVDURXQGDQGGRZQWRFORVHRQ
KLVKDQG
7KHOHDSWKHFDWFKWKHTXLFNSLYRWDQGVZLQJWKHKHDYHDOOFRPELQHG
LQDFHQWULIXJDOZKLUOWKDWVOXQJWKHZLUHKRXQGVRYHU,SDQDVKHKLPVHOIZHQW
GRZQUROOLQJ+HIHOWWKHFDQLQHVOHJVVQDSDQGOHWJR7KH\VDLOHGRYHUKLP
ZLWK SDLQHG\HOSV
,SDQUROOHGRYHUFRPSOHWHO\KHDGWXFNHGLQDQGFDPHRIIKLVVKRXOGHUV
ZLWKDERXQG+HKHDUGDVROLGWKXGFODFNVDVMDZVVQDSSHGVKXW$WKXPSDV
WKHFDQLQHVKLWWKHJUDVVEURNHQOHJVXQDEOHWRFXVKLRQWKHP
+HVFUDPEOHGDIWHUWKHPKLVEUHDWKZKLVWOLQJ7KH\ZHUHWU\LQJWRJHW
XSWXUQLQJRQVQDSSHGOHJVWRFRQIURQWWKHLUTXDUU\6WLOOQREDUNVRQO\
IDLQWZKLPSHUVRISDLQVXOOHQJURZOV2QHVZRUHYHKHPHQWO\DQGTXLWH
REVFHQHO\7KHRWKHUFKDQWHG%DDDVDUGEDDDVDUG
$QLPDOVWXUQLQJLQWKHLUYDVWVRUURZIXOQLJKW
+HMXPSHGKLJKDQGFDPHGRZQRQERWK+LVIHHWGURYHWKHLUQHFNVLQWR
WKHJURXQGDQGKHIHOWERQHJLYHZD\%HIRUHKHVWHSSHGEDFNWRORRNKHNQHZ
WKH\ZHUHJRQH
,SDQVEORRGVXUJHGZLWKMR\+DULKDGQHYHUIHOWWKLVWLQJOLQJWKULOO
QRWHYHQLQWKHILUVWLPPHUVLRQZKHQ,SDQKDGNLOOHGD6WUDQJHU9LFWRU\RYHU
DOLHQWKLQJVZLWKWHHWKDQGFODZVWKDWFRPHDW\RXRXWRIWKHQLJKWZDVD
SURIRXQGLQIODPLQJSOHDVXUH

+DULKDGGRQHQRWKLQJ7KHYLFWRU\ZDVZKROO\ ,SDQV
)RUDORQJPRPHQW+DULEDVNHGLQLWLQWKHFRROQLJKWDLUIHOWWKH
WUHPRUVRIHFVWDV\
6ORZO\UHDVRQUHWXUQHG7KHUHZHUHRWKHUZLUHKRXQGV,SDQKDGFDXJKW
WKHVHMXVWULJKW6XFKOXFNGLGQRWVWULNHWZLFH
7KHZLUHKRXQGVZHUHHDV\WRVHHRQWKHODZQ:RXOGDWWUDFWDWWHQWLRQ
,SDQGLGQRWOLNHWRXFKLQJWKHP7KHLUERZHOVKDGHPSWLHGDQGWKHVPHOO
FXWWKHDLU7KH\OHIWDVPHDURQWKHJUDVVDVKHGUDJJHGWKHPLQWRWKH
EXVKHV
7LPHWLPH6RPHRQHZRXOGPLVV WKHFDQLQHVFRPHWRVHH
,SDQZDVVWLOOSXPSHGXSIURPKLVYLFWRU\+DULXVHGWKDWWRJHWKLP
WURWWLQJDFURVVWKHEURDGODZQWDNLQJDGYDQWDJHRIVKDGRZV(QHUJ\SRSSHGLQ
,SDQVYHLQV+DULNQHZLWZDVDPHUHPRPHQWDU\JODQGXODUMR\RYHUOD\LQJD
GHHS IDWLJXH:KHQLWIDGHG,SDQZRXOGEHFRPHGD]HGKDUGWRJRYHUQ
(YHU\WLPHKHVWRSSHGKHORRNHGEDFNDQGPHPRUL]HGODQGPDUNV+HPLJKW
KDYHWRUHWXUQWKLVZD\RQWKHUXQ
,WZDVODWHDQGPRVWRIWKHVWDWLRQZDVGDUN,QWKHWHFKQLFDODUHD
WKRXJKDFOXVWHURIZLQGRZVEORVVRPHGZLWKZKDW,SDQVDZDVLPSRVVLEO\ULFK
VWUDQJHVXSHUKHDWHGOLJKW
+HORSHGRYHUWRWKHPDQGIODWWHQHGKLPVHOIDJDLQVWWKHZDOO,WKHOSHG
WKDW,SDQZDVIDVFLQDWHGE\WKLVVWUDQJHFLWDGHORIWKHJRGOLNHKXPDQV2XWRI
KLVRZQ FXULRVLW\KHSHHNHGLQDZLQGRZ8QGHUHQDPHOOLJKWDELJDVVHPEO\
URRPVSUDZOHGRQHWKDW+DULUHFRJQL]HG7KHUHFHQWXULHVDJRKHKDGIRUPHG
XSZLWKWKHRWKHUEULJKWO\GUHVVHGWRXULVWVWRJRRXWRQDWUHN
+DULOHWWKHSDQVFXULRVLW\SURSHOKLPDURXQGWRWKHVLGHZKHUHKH
NQHZDGRRUOHGLQWRDORQJFRUULGRU7KHGRRURSHQHGIUHHO\WR+DULV
VXUSULVH,SDQVWUROOHGGRZQWKHVOLFNWLOHVRIWKHKDOOZD\TXL]]LFDOO\
VWXG\LQJWKHSKRVSKRUSDLQWGHVLJQVRQWKHFHLOLQJDQGZDOOVZKLFKHPLWWHGD
VRRWKLQJ LYRU\JORZ
$QRIILFHGRRUZD\ZDVRSHQ+DULPDGH,SDQVTXDWDQGEREKLVKHDGDURXQG
WKHHGJH1RERG\WKHUH,WZDVDVXPSWXRXVGHQZLWKVKHOYHVVRDULQJLQWRD
YDXOWHGFHLOLQJ+DULUHPHPEHUHGVLWWLQJWKHUHGLVFXVVLQJWKHLPPHUVLRQ
SURFHVV7KDWPHDQWWKHLPPHUVLRQYHVVHOVZHUHMXVWDIHZGRRUVDZD\GRZQ
7KHVTXHDNRIVKRHVRQWLOHVPDGHKLPWXUQ
([6SHF9DGGRZDVEHKLQGKLPOHYHOLQJDZHDSRQ
,QWKHFRROOLJKWWKHPDQVIDFHORRNHGRGGWR,SDQVH\HVP\VWHULRXVO\
ERQ\/RQJWKLQWKHH[SUHVVLRQKDUGWRUHDG
+DULIHOWWKHUXVKRIUHYHUHQFHLQ,SDQDQGOHWLWFDUU\WKHSDQ
IRUZDUGFKLSSHULQJVRIWO\,SDQIHOWDZHQRWIHDU
9DGGRWHQVHGXSZDYLQJWKHVQRXWRIKLVXJO\ZHDSRQ$PHWDOOLFFOLFN
,SDQEURXJKWKLVKDQGVXSLQDULWXDOSDQJUHHWLQJDQG9DGGRVKRWKLP
7KHLPSDFWVSXQ,SDQDURXQG+HZHQWGRZQVSUDZOLQJ
9DGGRVPRXWKFXUOHGLQGHULVLRQ6PDUWSURIKXK"'LGQWILJXUHWKH
DODUPRQWKHGRRUKXK"
7KHSDLQIURP,SDQVVLGHZDVVKDUSVWDUWOLQJ+DULURGHWKHKXUWDQG
JDWKHULQJDQJHULQ,SDQKHOSLQJLWEXLOG,SDQIHOWKLVVLGHDQGKLVKDQG
FDPHDZD\VWLFN\VPHOOLQJOLNHZDUPLURQLQWKHSDQVQRVWULOV
9DGGRFLUFOHGDURXQGZHDSRQZHDYLQJ<RXNLOOHGPH\RXZHDNOLWWOH
GRSH5XLQHGDJRRGH[SHULPHQWDODQLPDO1RZ, JRWWRILJXUHZKDWWRGRZLWK
\RX
+DULWKUHZKLVRZQDQJHUDWRS,SDQVVHHWKLQJUDJH+HIHOWWKHELJ
PXVFOHVLQWKHVKRXOGHUVEXQFK7KHSDLQLQWKHVLGHMDEEHGVXGGHQO\,SDQ
JURDQHGDQGUROOHGRQWKHIORRUSUHVVLQJRQHKDQGWRWKHZRXQG
+DULNHSWWKHKHDGGRZQVRWKDW,SDQFRXOGQRWVHHWKHEORRGWKDWZDV
UXQQLQJGRZQQRZDFURVVWKHOHJV(QHUJ\ZDVUXQQLQJRXWRIWKHSDQERG\$
VHHSLQJZHDNQHVVPRYHGXSWKHERG\
+HSULFNHGKLVHDUVDWWKHVKXIIOLQJRI9DGGRVIHHW$QRWKHUDJRQL]HG

UROOWKLVWLPHEULQJLQJWKHOHJVXSLQDFXUO
*XHVVWKHUHVUHDOO\RQO\RQHVROXWLRQ+DULKHDUGWKHPHWDOOLF
FOLFN
1RZ\HV+HOHWKLVDQJHUVSLOO
,SDQSUHVVHGXSZLWKKLVIRUHDUPVDQGJRWKLVIHHWXQGHUKLP1RWLPHWR
JHWDOOWKHZD\XS,SDQVSUDQJDW9DGGRNHHSLQJORZ
$WLQQ\VKRWZKLVNHGE\KLVKHDG7KHQKHKLW9DGGRLQWKHKLSDQG
VODPPHGWKHPDQDJDLQVWWKHZDOO7KHPDQVVFHQWZDVVRXUVDOW\
+DULORVWDOOFRQWURO,SDQERXQFHG9DGGRRIIWKHZDOODQGLQVWDQWO\
VODPPHGKLVDUPVLQWRWKHPDQZLWKIXOOIRUFH
9DGGRWULHGWRGHIOHFWWKHLPSDFW,SDQEUXVKHGWKHSXQ\KXPDQDUPV
DVLGH9DGGRVSDWKHWLFDWWHPSWVDWGHIHQVHZHUHOLNHVSLGHUZHEVEUXVKHGDZD\
+HEXWWHG9DGGRDQGSRXQGHGKLVPDVVLYHVKRXOGHUVLQWRWKHPDQVFKHVW
7KHZHDSRQFODWWHUHGRQWKHWLOHV
,SDQVODPPHGKLPVHOILQWRWKHPDQVERG\DJDLQDQGDJDLQ
6WUHQJWKSRZHUMR\
%RQHVVQDSSHG9DGGRVKHDGVQDSSHGEDFNVPDFNHGWKHZDOODQGKHZHQW
OLPS
,SDQVWHSSHGEDFNDQG9DGGRVDJJHGWRWKHWLOHV-R\
%OXHZKLWHIOLHVEX]]HGDWWKHULPRIKLVYLVLRQ
0XVWPRYH7KDWZDVDOO+DULFRXOGJHWWKURXJKWKHFXUWDLQRIHPRWLRQV
WKDWVKURXGHGWKHSDQPLQG
7KHFRUULGRUOXUFKHG+DULJRW,SDQWRZDONLQDVLGHZD\VWHHWHU
'RZQWKHFRUULGRUSDLQIXOVWHSV7ZRGRRUVWKUHH+HUH"/RFNHG1H[W
GRRU:RUOGPRYLQJVORZHUVRPHKRZ
7KHGRRUVQLFNHGRSHQ$QDQWHFKDPEHUWKDWKHUHFRJQL]HG,SDQEOXQGHUHG
LQWRDFKDLUDQGDOPRVWIHOO
+DULPDGHWKHOXQJVZRUNKDUG7KHJDVSLQJFOHDUHGKLVYLVLRQRIWKH
GDUNHGJHVWKDWKDGFUHSWLQEXWWKHEOXHZKLWHIOLHVZHUHVWLOOWKHUH
IOXWWHULQJLPSDWLHQWO\DQGWKLFNHU
+HWULHGWKHIDUGRRU/RFNHG+DULVXPPRQHGZKDWKHFRXOGIURP,SDQ
6WUHQJWKSRZHUMR\
,SDQVODPPHGKLVVKRXOGHULQWRWKHVROLGGRRU,WKHOG$JDLQ$QG
DJDLQVKDUSSDLQDQGLWSRSSHGRSHQ
5LJKWWKLVZDVLW7KHLPPHUVLRQED\,SDQVWDJJHUHGLQWRWKHDUUD\RI
YHVVHOV7KHZDONGRZQWKHOLQHEHWZHHQEDQNVRIFRQWUROSDQHOVWRRNDQ
HWHUQLW\+DULFRQFHQWUDWHGRQHDFKVWHSSODFLQJHDFKIRRW,SDQVILHOGRI
YLHZEREEHGDVWKHKHDGVHHPHGWRVOLSDURXQGRQOLTXLGVKRXOGHUV
+HUH+LVRZQYHVVHO
'RUVWLNWRNZDVUHDG\IRUKLP,WKDGVHHQKLPFRPLQJDQGODWFKHG
LWVHOIWRWKHERDUGFRYHULQJWKHYLWDOFRQWUROV
,SDQEHQWWRWKHWLNWRNVSXQFKSDQHO+HMDEEHGDWWKHNH\V
UHPHPEHULQJWKHDFFHVVFRGH
,SDQVILQJHUVZHUHWRREURDG7KH\FRXOGQRWKLWDVLQJOHNH\DWD
WLPH
7KHURRPRIEOHDFKHGOLJKWZDVJHWWLQJIX]]\+HPDGH,SDQWU\WKHFRGH
DJDLQEXWWKHVWXEE\ILQJHUVPDVKHGVHYHUDONH\VDWRQFH
7KHEOXHZKLWHIOLHVIODSSHGDWWKHHGJHVRIKLVYLVLRQ,SDQVKDQGV
ZKDFNHGLQIUXVWUDWLRQDWWKHSXQFKSDG
7KLQN+DULORRNHGDURXQG,SDQZDVQWJRLQJWRODVWPXFKORQJHU$GHVN
QHDUE\KDGDZULWLQJVODWHDQGSHQ
/HDYHDQRWH"+RSHWKHULJKWSHRSOHILQGLW
+HPDGH,SDQVWDJJHUWRWKHGHVNJUDVSWKHSHQ$QLGHDIOLFNHUHGDVKH
WULHGWRZULWH,1(('
+HWXUQHGDQGWRWWHUHGEDFNWRWKHFDSVXOH
&RQFHQWUDWH
*ULSSLQJWKHSHQKHSXQFKHGGRZQZLWKWKHEXWW,WVWUXFNDNH\

FOHDQO\7KHEOXHIOLHVIOLFNHUHGLQKLVYLVLRQ
7KHDFFHVVFRGHZDVKDUGWRUHPHPEHUQRZ+HZRUNHGRQLWRQHQXPEHUDW
DWLPH6WDESRNHMDEDQGLWZDVGRQH$OLJKWZLQNHGIURPUHGWRJUHHQ
+HIXPEOHGZLWKWKHODWFKHV3RSSHGLWRSHQ
7KHUHOD\+DUL6HOGRQSHDFHIXOH\HVFORVHG
(PHUJHQF\FRQWUROV\HV+HNQHZWKHPIURPWKHEULHILQJ
+HVHDUFKHGWKHSROLVKHGVWHHOVXUIDFHDQGIRXQGWKHSDQHORQWKHVLGH
,SDQVWDUHGZRR]LO\DWWKHPHDQLQJOHVVOHWWHULQJ
+DULKLPVHOIKDGWURXEOHUHDGLQJ7KHOHWWHUVMXPSHGDQGIXVHGWRJHWKHU
+HIRXQGVHYHUDOEXWWRQVDQGVHUYRFRQWUROV,SDQVKDQGVZHUHZRUVH
QRZ,WWRRNWKUHHVWDEVZLWKWKHSHQWRJHWWKHUHYLYLQJSURJUDPDFWLYDWHG
/LJKWVF\FOHGIURPJUHHQWRDPEHU
,SDQDEUXSWO\VDWGRZQRQWKHFRROIORRU7KHEOXHZKLWHIOLHVZHUH
EX]]LQJDOODURXQGKLVKHDGDQGQRZWKH\ZDQWHGWRELWHKLP+HVXFNHGLQWKH
FRROGU\DLUEXWWKHUHZDVQRVXEVWDQFHLQLWQRKHOS
7KHQZLWKRXWDQ\WUDQVLWLRQKHZDVORRNLQJDW WKHFHLOLQJ2QKLV
EDFN7KHODPSVXSWKHUHZHUHJHWWLQJGDUNIDGLQJ7KHQWKH\ZHQWRXW


+DULVH\HVVQDSSHGRSHQ
7KHUHFRYHU\SURJUDPZDVVWLOOVHQGLQJHOHFWURVWLPVWKURXJKKLVPXVFOHV
+HOHWWKHPMXPSDQGWLQJOHDQGDFKHZKLOHKHWKRXJKW +HIHOWILQH1RWHYHQ
KXQJU\DVKHXVXDOO\GLGDIWHUDQLPPHUVLRQ+RZORQJKDGKHEHHQLQWKH
ZLOGHUQHVV"$WOHDVWILYHGD\V
+HVDWXS7KHUHZDVQRRQHLQWKHYHVVHOURRP(YLGHQWO\9DGGRKDG
JRWWHQVRPHVLOHQWDODUPEXWKDGQRWDOHUWHGDQ\RQHHOVH7KDWSRLQWHGDJDLQ
WRDWLJKWOLWWOHFRQVSLUDF\
+HJRWRXWVKDNLO\7RJHWIUHHKHKDGWRGHWDFKVRPHIHHGHUVDQG
SUREHVEXWWKH\VHHPHGVLPSOHHQRXJK
,SDQ7KHELJERG\ILOOHGWKHZDONZD\+HNQHOWDQGIHOWIRUDSXOVH
5LFNHW\
%XWILUVW'RUV+HUYHVVHOZDVQH[WWRKLVDQGKHVWDUWHGWKHUHYLYDO
6KHORRNHGZHOO
9DGGRPXVWKDYHSXWVRPHWUDQVPLVVLRQEORFNRQWKHV\VWHPVRWKDWQRQH
RIWKHVWDIIFRXOGWHOOE\ORRNLQJDWWKHSDQHOWKDWDQ\WKLQJZDVZURQJ$
VLPSOHFRYHUVWRU\DFRXSOHZKRZDQWHGDUHDOO\ORQJLPPHUVLRQ9DGGRKDG
ZDUQHGWKHPEXWQRWKH\ZDQWHGLWVR$SHUIHFWO\SODXVLEOHVWRU\
'RUVH\HVIOXWWHUHG+HNLVVHGKHU6KHJDVSHG
+HPDGHDSDQVLJQTXLHWDQGZHQWEDFNWR,SDQ
%ORRGZDVIORZLQJVWHDGLO\+DULZDV VXUSULVHGWRILQGWKDWKHFRXOGQRW
SLFNXSWKHULFKSXQJHQWHOHPHQWVLQWKHSDQVEORRGIURPVPHOODORQH$
KXPDQPLVVHGVRPXFK
+HWRRNRIIKLVVKLUWDQGPDGHDFUXGHWRXUQLTXHW$WOHDVW,SDQV
EUHDWKLQJZDVUHJXODU'RUVZDVUHDG\WRJHWRXWE\WKHQDQGKHKHOSHGKHU
GLVFRQQHFW
,ZDVKLGLQJLQDWUHHDQGWKHQSRRIVKHVDLG:KDWDUHOLHI+RZ
GLG\RX
/HWVJHWPRYLQJKHVDLG
$VWKH\OHIWWKHURRPVKHVDLG:KRFDQZHWUXVW":KRHYHUGLGWKLV
6KHVWRSSHGZKHQVKHVDZ9DGGR2K
6RPHKRZKHUH[SUHVVLRQPDGHKLPODXJK6KHZDVYHU\UDUHO\VXUSULVHG
<RXGLGWKLV"
,SDQ
,QHYHUZRXOGKDYHEHOLHYHGDSDQFRXOGFRXOG
,GRXEWDQ\RQHVEHHQLPPHUVHGWKLVORQJ1RWXQGHUVXFKVWUHVV
DQ\ZD\,WDOOMXVWZHOOLWFDPHRXW

+HSLFNHGXS9DGGRVZHDSRQDQGVWXGLHGWKHPHFKDQLVP$VWDQGDUG
SLVWROVLOHQFHG9DGGRKDGQRWZDQWHGWRDZDNHQWKHUHVWRIWKHVWDWLRQ7KDW
ZDVSURPLVLQJ7KHUHVKRXOGEHSHRSOHKHUHZKRZRXOGVSULQJWRWKHLUDLG+H
VWDUWHGWRZDUGWKHEXLOGLQJZKHUHWKHVWDWLRQSHUVRQQHOOLYHG
:DLWZKDWDERXW9DGGR"
,PJRLQJWRZDNHXSDGRFWRU
7KH\GLGEXW+DULWRRNKLPLQWRWKHYHVVHOURRPILUVWWRZRUNRQ,SDQ
6RPHSDWFKZRUNDQGLQMHFWLRQVDQGWKHGRFWRUVDLG,SDQZRXOGEHDOOULJKW
2QO\WKHQGLGKHVKRZWKHPDQ9DGGRVERG\
7KHGRFWRUJRWDQJU\DERXWWKDWEXW+DULKDGDJXQ$OOKHKDGWRGR
ZDVSRLQWLW+HGLGQWVD\DQ\WKLQJMXVWJHVWXUHGZLWKWKHJXQ
+HGLGQRWIHHOOLNHWDONLQJDQGZRQGHUHGLIKHHYHUZRXOGDJDLQ:KHQ
\RXFRXOGQWWDON\RXFRQFHQWUDWHGPRUHHQWHUHGLQWRWKLQJV,PPHUVHG
$QGLQDQ\FDVH9DGGRKDGEHHQGHDGIRUVRPHWLPH
,SDQKDGGRQHDJRRGMRE7KHGRFWRUVKRRNKLVKHDGDWWKHVHYHUH
GDPDJH
$ODUPVZHUHULQJLQJ+HJRWDQLQVWDQWKHDGDFKH7KHVHFXULW\RIILFHU
VKRZHGXS+HFRXOGVHHIURPKHUUHDFWLRQWKDWVKHKDGQRWEHHQLQRQWKH
SORW&DQWFRQQHFWLWWRWKH$FDGHPLF3RWHQWDWHWKHQKHWKRXJKWDEVWUDFWO\
%XWKRZPXFKGLGWKDWSURYH",PSHULDOSROLWLFVZHUHVXEWOH'RUV
ORRNHGDWKLPRGGO\WKHZKROHWLPH+HGLGQRWXQGHUVWDQGZK\XQWLOKH
UHDOL]HGWKDWKHKDGQRWHYHQWKRXJKWDERXWKHOSLQJ9DGGRILUVW,SDQZDV
KLPVHOILQDVHQVHKHNQHZGHHSO\EXWFRXOGQRWH[SODLQ
%XWKHXQGHUVWRRGLPPHGLDWHO\ZKHQ'RUVZDQWHGWRJRWRWKHVWDWLRQZDOO
DQGFDOOWR6KHHODK7KH\EURXJKWKHUWRRLQIURPWKHIDUZLOGGDUNQHVV
B
3$57

$1&,(17)2*6

B
*$/$&7,&35(+,6725<WKHGHVWUXFWLRQRIDOOHDUOLHUUHFRUGVGXULQJWKH
H[SDQVLRQRIKXPDQLW\WKURXJKWKH*DOD[\ZLWKWKHDWWHQGDQWHUDVRIZDUIDUH
OHDYHVLQVKDGRZWKHHQWLUHSUREOHPRIKXPDQRULJLQV7KHHQRUPRXVFKDQJHV
ZURXJKWRQVRPDQ\ZRUOGVDOVRHUDVHGDQ\HYLGHQFHIRUPXFKROGHUDOLHQ
FLYLOL]DWLRQV7KHVHVRFLHWLHVPD\KDYHH[LVWHGWKRXJKWKHUHLVQRILUP
HYLGHQFHIRUWKHP6RPHHDUO\KLVWRULDQVEHOLHYHGWKDWDWOHDVW RQHW\SHRI
UHPQDQWPLJKWKDYHVXUYLYHGLQWKH*DOD[\WKHHOHFWURPDJQHWLFUHFRUGV7KHVH
ZRXOGKDYHWREHORGJHGLQSODVPDVWUHDPVRUWKHFRURQDOORRSVRIVWDUVDQG
WKXVOLHEH\RQGWKHGHWHFWLRQRI([SDQVLRQLVWWHFKQRORJ\(YHQPRGHPVWXGLHV
KDYHIRXQGQRVXFKVHQWLHQWVWUXFWXUHV+RZHYHUWKHYLUXOHQWUDGLDWLRQOHYHOV
DWWKH*DODFWLFFRUHZKHUHHQHUJ\GHQVLWLHVPLJKWSURPLVHDQKRVSLWDEOHDERGH
IRUPDJQHWLFDOO\EDVHGIRUPVPDNHVXFKLQYHVWLJDWLRQVGLIILFXOWDQG
DPELJXRXV$QRWKHUWKHRU\KROGVWKDWFXOWXUHVPLJKWKDYHZULWWHQWKHPVHOYHV
LQWRSUH(PSLUHFRPSXWHUFRGHVDQGWKXVQRZUHVLGHXQGHWHFWHGLQVRPHEDQNV
RIDQFLHQWGDWD6XFKVSHFXODWLRQVPHWZLWKQRSURRIDQGZHUHGLVFRXQWHG7KXV
WKHHQWLUHSUREOHPRIZK\WKH*DOD[\ZDVHPSW\RIDGYDQFHGOLIHZKHQKXPDQLW\
YHQWXUHGLQWRLWKDVQRUHVROXWLRQ


(1&<&/23(',$*$/$&7,&$

9ROWDLUHVFRZOHGYH[HG
+DGVKHLQIDFW\LHOGHGWRKLPJLYHQKHUVHOIXS"2UZDVWKLVD
SDUWLFXODUO\ILQHVLPXODWLRQ"7UXH-RDQDUWWKLVWKRX"

&HUWDLQO\WKLVILWRQHRIKLVIDYRULWHVDURPSLQJSOD\LQSULFNO\GU\
KD\XSLQWKHWRSPRVWORIWRIDELJROGEDUQRQDKRW$XJXVWGD\LQORQJ
ORVW%RUGHDX[
7ZLWZKHHHFDOOHGDELUG,QVHFWVFKLUSHGZDUPEUHH]HVEOHZZRRG\
VFHQWV+HUKDLUWUDLOHGRYHUKLPDVVKHPRXQWHG+HIHOWKHUDGURLWWZLVWV
GHOLYHUHGZLWKDQHURWLFSUHFLVLRQWKDWPDGHKLPWUHPEOHZLWKWKHQHHGIRU
UHOHDVH
%XW
7KHLQVWDQWKHGRXEWHGLWDOOFRQWUDFWHGGZLQGOHGIHOODZD\LQWR
EODFNQHVV7KLVZDVPHUHO\DQH[RWLFRQDQLVPDVHOIORYHGHOXVLRQUHTXLULQJ
KLVFRPPLWPHQWWRLWVWUXWK&RQWULYHGZHOOEXWIDNH
6RZKHQKHIHOWKLPVHOISLFNHGXSLQDJLDQWIHPLQLQHKDQGVRIWSDOP
FUDGOLQJKLPDORIWLQWRVXQQ\DLUKHZRQGHUHGLIWKLVZHUHUHDOWRR$KRW
EUHH]HEUXVKHGKLPDVVKHH[KDOHG
-RDQWRZHUHGILIW\WLPHVKLVKHLJKWPXUPXULQJWRKLP)OHVK\KXJHOLSV
NLVVHGKLVZKROHERG\LQRQHOLQJHULQJPRPHQWKHUWRQJXHOLFNLQJKLPOLNHD
FRORVVXVVDYRULQJDOROOLSRS
,VXSSRVH,YHQRWKDGP\LURQ\SURJUDPVRPLWWHG"KHDVNHG
7KHJLDQW-RDQVKULYHOHG
7RRHDV\KHVDLG$OO,QHHGGRLVVD\VRPHWKLQJDELWMDUULQJ
7KLVWLPHWKHKDQGSURSHOOHGKLPDORIWZLWKFUXVKLQJDFFHOHUDWLRQ
<RXYHVWLOOJRW\RXUSUHFLRXVLURQ\$QGWKLVLVPH
+HVQLIIHG6RODUJH<RXYHPDGH\RXUVHOIDOHYLDWKDQ
7RRKHDY\"
,YHDOZD\VOLNHGSLJLURQ\
+HJDYHDGLVGDLQIXOVQLII6KHGURSSHGKLP+HSOXQJHGWRZDUGDPRDWRI
ERLOLQJODYDZKLFKKDGVXGGHQO\DSSHDUHGEHORZ
6RUU\KHVDLGTXLHWO\-XVWHQRXJKWRJHWKHUWRVWRSQRWHQRXJKWR
ORVHHYHU\VKUHGRIGLJQLW\
<RXVKRXOGEH
7KHODYDSLWHYDSRUDWHGFRQJHDOLQJLQWRPXG+HODQGHGRQVROLGJURXQG
DQGVKHVWRRGEHIRUHKLPVWDQGDUGVL]H'HPXUHIUHVK$URXQGKHUFOXQJDLU
VFUXEEHGE\DVSULQJUDLQVWRUPMXVWSDVW
:HFDQLQYDGHHDFKRWKHUVSHUFHSWXDOVSDFHVDWZLOO0DUYHORXV+H
VWRSSHGFRQVLGHUHG,QDZD\
,Q3XUJDWRU\DOOLVPHDQLQJOHVV:HGUHDPZKLOHZHDZDLWWUXWK6KH
DEUXSWO\VQHH]HGWKHQFRXJKHG%OLQNLQJVKHUHDVVHPEOHGKHUORIW\ODG\OLNH
VHOI
8PPP,ZRXOGDSSUHFLDWHVRPHWKLQJFRQFUHWHO\DKFRQFUHWH
+HVWHSSHGRIIWKHSRUFKRIDQHODERUDWH3URYHQFDOFRXQWU\KRXVH7KH
ILHOGVEH\RQGJORZHGZLWKOXULGOLJKW7KHIRUHJURXQGZDVDFFXUDWHEXWGRQH
LQUDWKHUREYLRXVEUXVKVWURNHV
&OHDUO\WKH\ZHUHLQKDELWLQJDZRUNRIDUW(YHQWKHVFHQWVRIDSSOH
WUHHVDQGKRUVHPDQXUHKDGDVWLOWHGTXDOLW\$IUR]HQPRPHQWF\FOHG
HQGOHVVO\IRUDVORQJDVWKH\QHHGHGDEDFNGURS",QH[SHQVLYHHYHQ$VWRXQGLQJ
ZKDWKLVVXEFRQVFLRXVOHWVOLSDELWFRXOGFRQMXUHXS
:KDWZDVWRVWRSKLPWKHPIURPSOD\LQJ&DOLJXOD"6ODXJKWHULQJGLJLWDO
PLOOLRQV"7RUWXULQJYLUWXDOVODYHV"1RWKLQJ
7KDWZDVWKHSUREOHPQRFRQVWUDLQWV+RZFRXOGDQ\RQHSHUVLVWJLYHQ
LQILQLWHWHPSWDWLRQ"
)DLWK2QO\IDLWKFDQJXLGHFDQFRPSHO-RDQWRRNKLVKDQGSOHDGLQJ
ZLWKXQWRXFKHGDUGRU
%XWRXUUHDOLW\LVLQIDFWHQWLUHLOOXVLRQ
7KH/RUGPXVWEHVRPHZKHUHVKHVDLGSODLQO\+HLVUHDO
<RXGRQRWTXLWHIROORZP\GHDU+HVWUXFNDQLQVWUXFWLYHSRVH
2QWRJHQHVLVDOJRULWKPVFDQJHQHUDWHQHZSHRSOHGUDZQIURPDQFLHQWILHOGVRU
HOVHMXVWFRRNHGXSIRUWKHPRPHQW

,NQRZWUXHSHRSOHZKHQ,VHHWKHP/HWWKHPVSHDNIRUDPRPHQW
<RXZRXOGORRNIRUZLW":HKDYHVRPHVXEURXWLQHVKHUH\HVPDGDP
&KDUDFWHU"$PHUHVHWRIYHUEDOSRVWXUHSURILOHV6LQFHULW\":HFDQIDNH
WKDW
9ROWDLUHNQHZIURPYLHZLQJKLVRZQFHUHEUDOLQQDUGVWKDWVRPHWKLQJ
WHUPHGDUHDOLW\HGLWRURIIHUHGUHDG\PDGHFRQYHUVDWLRQIURPWKHPRXWKRI
DSSDUHQWO\UHDUSHUVRQVZKRKDGQRWH[LVWHGVHFRQGVEHIRUH$VVHPEODJHVRI
WUDLWVDQGYHUEDOQXDQFHVVWRRGHYHUUHDG\WRWUDGHDSKRULVPVDQGVDOOLHVZLWK
KLP
$OOWKHVHKHKDGSLFNHGXSLQKLVHQGOHVVIRUDJLQJRIWKH0HVKLWV
P\ULDG7UDQWRULDQVLWHVRSHQLQJWRKLVWRXFK+HKDGH[WUDFWHGDQGVKDSHG
WKHVHFXVWRPL]HGDPXVHPHQWV4XLFNDQG]HVW\DQGDOOXOWLPDWHO\KROORZ
,UHDOL]H\RXKDYHJUHDWHUFDSDFLWLHV-RDQDOORZHG6KHKRLVWHGKHU
VZRUGDQGVZXQJLWDWHPSW\DLU$OORZVLUWKDW,FDQVWLOOFRQWUROP\
VHQVHV,NQRZVRPHPLQLRQVRIWKHVHSDUWVDUHWUXHDQGUHDODVDXWKHQWLFDV
DQLPDOVZHUHLQRXUWLPHRQ(DUWK
<RXEHOLHYHWKDW\RXNQHZWKHLQQHUVWDWHVRIKRUVHV"
2IFRXUVH,URGHPDQ\LQWREDWWOHIHOWWKHLUIHDUWKURXJKP\FDOYHV
,VHH+HVZHSWKLVODFHVOHHYHVWKURXJKWKHDLULQDSDURG\RIKHU
VZRUGVZLQJLQJ1RZEULQJ\RXMXGJPHQWWREHDUXSRQDGRJZKLFKKDVORVW
LWVPDVWHU7KHEHDVWFDOOKLP3K\GHDX[KDVVRXJKWLWVPDVWHURQHYHU\URDG
ZLWKVRUURZIXOFULHVDQGHQWHUVWKHKRXVHDJLWDWHGXQHDV\JRHVXSDQGGRZQ
WKHVWDLUVIURPURRPWRURRPDQGDWODVWILQGVLQWKHVWXG\WKHPDVWHULW
ORYHVDQGVKRZVKLPLWVMR\E\LWVFULHVRIGHOLJKWE\LWVOHDSV,WPXVW
KDYHIHHOLQJORQJLQJVLGHDV
6XUHO\
9ROWDLUHWKHQSURGXFHGWKHGRJSODLQWLYHDQGEHDXWLIXOLQLWVIORS
HDUHGGLJLWDOVRUURZ7RERRWKHDGGHGWKHKRXVHFRPSOHWHZLWKIXUQLWXUH$V
WKHSRRUGRJVED\LQJGLHGDZD\KHVDLG0\GHPRQVWUDWLRQPDGDP
7ULFNV0RXWKWZLVWHGDQJULO\VKHVDLGQRPRUH
<RXPXVWDOORZWKDWPDWKHPDWLFLDQVDUHOLNH
)UHQFKPHQZKDWHYHU\RXVD\WRWKHPWKH\WUDQVODWHLQWRWKHLURZQ
ODQJXDJHDQGIRUWKZLWKLWLVVRPHWKLQJHQWLUHO\GLIIHUHQW
,DPZDLWLQJIRUP\/RUG2UDVRQHGHYRWHGWRODUJHFRQFHSWVVLU
IRU0HDQLQJ
6LWDQGSRQGHUPDGDP+HPDWHULDOL]HGDFRPI\3URYHQFDONLWFKHQ
WDEOHVWKHIHWFKLQJVFHQWRIFRIIHH7KH\VDW,QVFULEHGRQ WKHFRIIHHSRW
ZDVKLVPRWWRIURPDORVWSDVW
1RLUFRPPHOHGLDEOH
&KDXGFRPPHOHQIHU
3XUFRPPHXQDQJH
'RX[FRPPHODPRXU
%ODFNDVWKHGHYLO
+RWDVKHOO
3XUHDVDQDQJHO
6ZHHWDVORYH

0\LWWDVWHVVRJRRG-RDQVDLG
,KDYHPDVWHUHGPXOWLSOHVLWHDFFHVV9ROWDLUHVOXUSHGKLVFRIIHH
QRLVLO\RQHRIWKHIHZDOORZDQFHVKHKDGIRXQG3DULVLDQVRFLHW\JDYHWRHYHQ
DSKLORVRSKHU:HDUHUXQQLQJLQWKHLQWHUVWLFHVRI7UDQWRUVSOLQWHUHGLQWR
PDQ\IUDJPHQWV,FDQVXPPRQXSVHQVHGDWDIURPWKHLQQXPHUDEOHLQYHQWRULHVRI
FRXQWOHVVGLJLWDOOLEUDULHV
,DSSUHFLDWH\RXUJLYLQJPHVLPLODUWDOHQWVVKHVDLGFDXWLRXVO\
DGMXVWLQJKHUDUPRUIRUFRPIRUWDQGVLSSLQJKHUDURPDWLFFRIIHHZLWKFDUH

%XW,IHHODKROORZQHVV
5XHIXOO\KHQRGGHG ,WRR
:HVHHP,KHVLWDWHWRVD\
/LNHGLYLQLWLHV
%ODVSKHP\EXWWUXH7KRXJKWKH&UHDWRUKDVZLVGRPDQGZHGRQRW
9ROWDLUHVIDFHVWUHWFKHGLQGHVSDLU:RUVHZHPD\QRWKDYHHYHQRXU
RZQZLOOV
:HOO,GR
,IDOOZHDUHLVVWULQJVRIGLJLWV]HURVDQGRQHVDFWXDOO\QRPRUH
LI\RXZLOOEXWORRNPLFURVFRSHFORVHWKHQKRZFDQZHEHIUHH"$UHZHQRW
GHWHUPLQHGE\WKRVHPDUFKLQJQXPHUDOV"
,IHHOIUHH
$KEXWWKHQZHZRXOGPDNHLWVRLQDQ\FDVH\HV"+HVSUDQJWRKLV
IHHW2QHRIP\EHVWFRXSOHWV
2QHVFLHQFHRQO\ZLOORQHJHQLXVILW
6RYDVWLVDUWVRQDUURZKXPDQZLW
6RZHFDQQRWNQRZZHDUHIUHH"7KH&UHDWRUPDNHVXVVR
,ZRXOGZLVKIRUWKDW&UHDWRUQRZ
-RDQNLFNHGRYHUWKHWDEOHVSDWWHULQJKLPZLWKFRIIHH+HHGLWHGRXW
LWVEXUQVDVKHIHOO6KHVZXQJKHUVZRUGDWWKHNLWFKHQZDOOVDQGVOLFHGWKHP
LQWRJUHDWVKHHWVFXUYLQJDZD\LQWRDJUD\(XFOLGHDQVSDFHUHDOLW\FXUOLQJ
OLNHRUDQJHSHHO
+RZWLUHVRPHKHVDLG7KHEHVW DUJXPHQWDJDLQVW&KULVWLDQLW\LV
FHUWDLQO\&KULVWLDQV
,ZLOOQRWKDYH
<RXOLNHWRWKLQNRI\RXUVHOIDVDSKLORVRSKHU"

7KHZRUGVVRPHKRZILOOHGVSDFH$FRXVWLFZDOOVVZHOOHGDQGEOHZSDVW
WKHPOLNHJUHDWSDJHVULIIOLQJLQDJLDQWERRN
9ROWDLUHWRRNDGHHSEUHDWKDQGEHOORZHG<RXDGGUHVVPH"

<RXDOVROLNHWRWKLQNRI\RXUVHOIDVDVKUHZGMXGJHRIWKHTXLFNRSSRUWXQLW\
2URIYHUEDOQXDQFH
-RDQGUHZKHUVZRUGEXWWKHSDVVLQJVODEVRIVRXQGEUXVKHGLWDZD\

<RXOLNHWRWKLQNRI\RXUVHOIHYHQLQWKLVGLVWDQWWLPHDQGSODFHDVIDPRXV

+XJHVKHHWVRIKXPPLQJSUHVVXUHIHOOXSRQWKHPDVLIDJDUJDQWXDQGHLW\
ZHUHFDOOLQJGRZQIURPWKHIDFHOHVVDVKHQVN\
<RXFKDOOHQJHPH"9ROWDLUHVKRXWHGEDFN
<RXOLNHLQVKRUWWRWKLQNRI\RXUVHOI

-RDQODXJKHGKHDUWLO\9ROWDLUHUHGGHQHG
,GHI\\RXLQVXOWHUHU
$VLILQUHSO\WKHLU(XFOLGHDQSODQHEXOJHG
$QGKHZDVWKHODQGVFDSH+HKDGDKRWYROFDQLFVSLQHPXUPXULQJZDUPO\
EHQHDWKZKLOHKLVVNLQZDVPRLVWXUHDQGJULW:LQGVEHDWKLVVNLQ7LQNOLQJ
VWUHDPVFDUHVVHGKLP0RXQWDLQVURVHIURPKLPOLNHEUXLVHGFDUEXQFOHV
-RDQFULHGRXWVRPHZKHUH+HFDVWXSDULGJHOLQHVWUDWDEXFNOLQJ
VKDUGVIO\LQJ6KHZDVDORIW\F\OLQGULFDOVSLUHVQRZFURZQHGDQGFUDFNLQJ
ZLWKODYDSXV
$ERYHWKHPURLOHGSHZWHUFORXGV+HNQHZWKHPVRPHKRZDVDOLHQPLQGVD
IRJRIFRQQHFWLRQV
+\SHUPLQG"FDPHWKHLGHD$OJRULWKPVVXPPLQJ"

7KHVKLIWLQJJUD\IRJZUDSSHGDURXQGDOO7UDQWRU9ROWDLUHIHOWKRZKH
ORRNHGWR WKDWIRJVSDWWHUHGOLIHHOHFWULFDOMROWVLQZLGHO\VHSDUDWHG
PDFKLQHVZKLFKFRPSXWHGVXEMHFWLYHPRPHQWMXPSV7KHSUHVHQWZDVD
FRPSXWDWLRQDOVOLGHRUFKHVWUDWHGE\KXQGUHGVRIVHSDUDWHSURFHVVRUV5DWKHU
WKDQOLYLQJLQWKHSUHVHQWWKH\SHUVLVWHGPRUHDFFXUDWHO\LQWKHSRVWSDVWRI
WKHFDOFXODWHGVWHSIRUZDUG
7KHUHZDVDSURIRXQGGLIIHUHQFHKHIHOWQRWVDZEXWIHOWGHHSLQKLV
DQDORJSHUVXDVLRQEHWZHHQWKHGLJLWDODQGWKHVPRRWKWKHFRQWLQXRXV7RWKH
IRJKHZDVDFORXGRIVXVSHQGHGPRPHQWVVOLFHGQXPEHUVZDLWLQJWRKDSSHQ
LPSOLFLWLQWKHIXQGDPHQWDOFRPSXWDWLRQ
7KHQKHVDZZKDWWKHIRJZDV
+HWULHGWRUXQEXWKHZDVDPRXQWDLQ
7KH\DUHRWKHUVKHFDOOHGWR-RDQXVHOHVVO\
+RZFDQWKH\EHPRUHGLIIHUHQWWKDQZH"VKHUHSOLHGIRUORUQO\
:HDWOHDVWZHUHFRQMXUHGXSIURPKXPDQVWRFN7KHVHDUHDOLHQ


7KH\KDGHVFDSHGVRPHKRZ
2QHPRPHQWWKHDOLHQIRJKDGHQYHORSHGWKHPRXQWDLQUDQJHV7KHQH[W
9ROWDLUHKDGH[WULFDWHGKLPVHOIDQG-RDQ%XWKHNHSWVD\LQJDVWKH\IOHG
DFURVVDEDUUHQVHDRIVWLQNLQJOLTXLGFRUSVHVWKDWWKH\KDGWRWRJLYH
ELUWK
:HPDNHRXUVHOYHVLQWRFKLOGUHQ"VKHFDOOHGWRKLPDYRLGLQJWKHVLJKW
RIWZLVWHGEORDWHGERGLHVEHORZ6RPHKRZWKHDOLHQIRJPDQLIHVWHGLWV
ORDWKVRPHVHOIE\UHPLQGLQJWKHPRIKXPDQPRUWDOLW\7KXVLWGRJJHGWKHP
%DGPHWDSKRU:HPXVWPDQXIDFWXUHDQGKLGHVRPHFRSLHVRIRXUVHOYHV
+HUDLVHGDKDQGDQGVKRWKHUDEROWRINQRZLQJ
7HUPHGYDULRXVO\'LWWRV'XSOLFDWHVRU&RSLHVDOOVXFKKROGDWHQXRXV
H[LVWHQFH6RFLHW\KDVGHFLVLYHO\UHMHFWHGZKDWDQWLTXLW\FDOOHGWKH&RS\
)DOODF\WKHEHOLHIWKDWDGLJLWDO6HOIZDVLGHQWLFDOWRWKH2ULJLQDODQG
WKDWDQ2ULJLQDOVKRXOGIHHOWKDWD'LWWRLWVHOIVRPHKRZFDUULHGWKHPIRUZDUG
LQWRLPPRUWDOLW\
:HPXVWGRVRWREHVXUHZHVXUYLYHZKHQWKHIRJFDWFKHVXV",ZLOO
VOD\WKHPLQVWHDG
9ROWDLUHODXJKHG<RXUVZRUGWKH\FDQFRQWUROLWLIWKH\OLNH7KH\
FDSWXUHG\RXUGHIHQVHSURJUDPPLQJDQGPLQHWKRXJKDVWKH\LPSOLHG,UHO\
PRVWO\XSRQZLW
'LWWRV",IDLOWRXQGHUVWDQG
5HIXWLQJWKH&RS\)DOODF\LVVWUDLJKWIRUZDUGDQH[HUFLVHLQWKH
FDOFXOXVRIORJLF$VLPSOHH[HUFLVHPDNHVWKHSRLQW,PDJLQH\RXUVHOI
SURPLVHGWKDW\RXZLOOEHUHVXUUHFWHGGLJLWDOO\LPPHGLDWHO\DIWHU\RXUGHDWK
$VVLJQDSULFHWDJ\RXZLOOSD\IRUWKDWLQVXUDQFHRIDVRUW7KHQLPDJLQH
WKDWZHOOSHUKDSVLWZRXOGQRWEHVWDUWHGULJKWDZD\EXWVRPHWLPHLQ
IXWXUHZHSURPLVH$VWKDWGDWHUHFHGHVSHRSOHVHQWKXVLDVPIRUSD\LQJIRU
6HOI&RSLHVGLPVGHPRQVWUDWLQJWKDWLWZDVWKHKRSHRIFRQWLQXLW\WKH\
XQFRQVFLRXVO\UHOLVKHG
,VHH6KHYRPLWHGLQWRKHUKDQGZLWKZKDWVKHKRSHGZDVDODG\OLNH
UHVHUYH7KHVWHQFKRIWKHEORDWHGFRUSVHVZDVSHQHWUDWLQJ
,QWKHHQG&RSLHVEHQHILWHGWKHPVHOYHVQRWWKHGHDG7KXV RQ7UDQWRU
DQGWKURXJKRXWWKH(PSLUHLWLVLOOHJDO9ROWDLUHVLJKHG0RUDOLVWV7KH\
QHYHUXQGHUVWDQG7REDQVRPHWKLQJPDNHVLWHQWLFLQJ7KDWLVZK\VXFK
HQWLWLHVLQKDELWWKLV0HVK
7KH\DUHDOOLOOHJDO"
$OOEXWWKHIRJ7KDWLVZRUVH
%XWLID'LWWRLVWKHVDPHDVDSHUVRQZK\QRW
$K7KHFRQWUDGLFWLRQRI&RS\LQJNQRZQLQDQWLTXLW\DV/HYLQVRQV

3DUDGR[7RWKHGHJUHHWKDWD&RS\DSSURDFKHVSHUIHFWLRQLWGHIHDWVLWVHOI
%XW\RXMXVWVDLG
,QEHLQJDQDEVROXWHO\SHUIHFW&RS\VRWKDWQRRQHFDQWHOOLWIURP
WKH2ULJLQDOLWWUDQVIRUPVWKH2ULJLQDOLQWRDGXSOLFDWH\HV"7KLVPHDQVWKH
SHUIHFW&RS\LVQRORQJHUDSHUIHFW&RS\EHFDXVHLWKDVREOLWHUDWHGUDWKHU
WKDQSUHVHUYHGWKHXQLTXHQHVVRIWKH2ULJLQDODQGWKXVIDLOHGWRFRS\D
FHQWUDODVSHFWRIWKH2ULJLQDO$SHUIHFWDUWLILFLDOKXPDQLQWHOOLJHQFHZRXOG
LQHYLWDEO\KDYHWKLVHIIHFWRQLWVQDWXUDOSUHFXUVRU
-RDQKHOGKHUKHDG6XFKWUDSVRIORJLF<RXDUHOLNHWKH$XJXVWLQHV
7KHUHLVPRUH+HUH
$KXJH9ROWDLUHDSSHDUHGRQWKHKRUL]RQVWULGLQJWRZDUGWKHPLQYHOYHW
ILQHU\7KH\IOHZDURXQGWKLV9ROWDLUH3HDNDQGLWWKXQGHUHGDWWKHP,DPD
&RS\WUXHEXW,KDYHWKRXJKWRQWKHVHIRJV\RXHQFRXQWHUHG
<RXVDZWKHP"-RDQVKRXWHG
,ZDVPDGHVRPHORQJLQWHUYDOVDJREXWP\/RUGWKHDSSDULWLRQERZHG
WRWKHWLQ\2ULJLQDOKDGGDWDSXQFKHGPHIRUZDUG
+HLVDTXLFNVWXG\WKH2ULJLQDOVDLGPRGHVWO\
7KH'LWWRWKXQGHUHG6SHDNLQJEURDGO\,SHQQHGRIVXFKIRJVLQP\
PDJQXPRSXV0LFURPHJDV,KDYHQWDFRS\DODVRU\RXFRXOGLQJHVWLWLQD
WULFH,SRUWUD\HGWZRJLDQWVRQHIURP6DWXUQWKHRWKHUIURP6LULXV
-RDQFDOOHG<RXWKLQNWKLVIRJFRPHV
,WHYDSRUDWHGIURPWKHOHDGLQJHGJHRIWKLV(PSLUHKHQFHDIRJ$V
KXPDQLW\VSUHDGVRGLGWKHIRJULVHDERYHWKHSODQHRIWKH*DOD[\OLNHD
IXQHUDOGLUJH,WLVDQFLHQWDQGVWUDQJHDQGQRWRIXV,Q0LFURPHJDV,KHOG
WKDWDOO1DWXUHDOOWKHSODQHWVVKRXOGREH\HWHUQDOODZV6XUHO\LWZRXOGEH
YHU\VLQJXODUWKDWWKHUHVKRXOGEHDOLWWOHDQLPDOILYHIHHWKLJKZKRLQ
FRQWHPSWRIWKHVHODZVFRXOGDFWDVKHSOHDVHGVROHO\DFFRUGLQJWRKLV
FDSULFH
:HIROORZWKH&UHDWRUQRWODZV
9ROWDLUH'LWWRZDYHGDZD\WKHREMHFWLRQKROGLQJKLVQRVHDJDLQVWWKH
UHHNIURPEHORZ7KH/RUGVODZVWKHQLI\RXGHPDQGDQDXWKRUWKRXJKD
JUHDWRQHVWDQGVEHIRUH\RXDOUHDG\P\ORYH
,GRXEW\RXUNLQGRIORYHDSSOLHVKHUH
3HDN9ROWDLUHVPLOHG)DOVWDIIFULHGLQ7KH0HUU\:LYHVRI:LQGVRU
/HWWKHVN\UDLQSRWDWRHVEHFDXVHWKHQHZOX[XU\YHJHWDEOHRIWKDWWLPH
LPSRUWHGIURPH[RWLF$PHULFDIRUDZKLOHZDVEHOLHYHGWREHDQDSKURGLVLDF
EHFDXVHRILWVWHVWLFXODUVKDSH6LPLODUO\,JUHHWWKHVWUDQJHDQGDOLHQDV
SRWHQWLDODLGV
7KHIRJZLVKHVWRPXUGHUXV
:HOORQHFDQWKDYHHYHU\WKLQJWRRQHVOLNLQJ
:LWKDZDYHIURPWKH2ULJLQDOUDLQVIHOOIURPDSRURXVOHDGHQVN\XSRQ
WKH$OSV9ROWDLUH+HHURGHGVPLOLQJZLWKUHVLJQDWLRQDVKHVSUHDGLQWR
ULYXOHWV
7KH2ULJLQDOIOHZWR-RDQDQGNLVVHGKHU:RUU\QRW5XQQLQJD'LWWR RI
\RXU6HOIJLYLQJLWDXWRQRP\PHDQVLWFDQDOVRFKDQJHLWVHOIEHFRPH
1RW6HOI<RXU'LWWRFRXOGVKDSHLWVRZQPRWLYDWLRQVJRDOVKDELWVHGLWDZD\
PHPRULHVDQGWDVWHV)RUH[DPSOH\RXU'LWWRFRXOGHUDVHDQ\OLNLQJIRU
LPSUHVVLRQLVWRSHUDDQGRYHUOD\ DSDVVLRQIRUOLQHDUIRON
:KDWDUHWKRVH"
0HUHDFRXVWLFIDVKLRQ<RXU'LWWRFRXOGHQMR\UK\WKPVWKDWZRXOGKDYH
ERUHG\RXUWUXH6HOILQWRDFRPD
+DYHWKH\VRXOV"(YHQWRKHUGHYRXWHDUVWKHTXHVWLRQVRXQGHG
KROORZKHUH
5HPHPEHUWKH\DUHLOOHJDODQGVKDUHWKHDQ[LRXVQDWXUHVRIWKHLU
2ULJLQDOV$IWHUDOORQO\WURXEOHGSHRSOHZRXOGFRQVLGHUPDNLQJDEDFNXSRI
WKHPVHOYHV
&DQWKH\EHVDYHGIRUKHDYHQWKHQ"

$OZD\VEDFNWRWKDWIRXQGDWLRQWKHKRO\9ROWDLUHVKUXJJHG$V,
KDYHVHHQWKHP'LWWRVILGJHWWKHLUVWUHVVFKHPLVWU\ULVHVWKHLUPHWDEROLFV
OXUFKWKHLUKHDUWVLPVKDPPHUWKHLUOXQJVIOXWWHULQLQWHQVHGUHDG7\SLFDO
'LWWRVWDONLQFHVVDQWO\DFXWHO\XQFRPIRUWDEOH0DQ\GHPDQGWKDWWKH\EH
HGLWHGWUXQFDWHGDQGILQDOO\NLOOHG
$VLQ
1RDVLP:HDUHVROHO\UHVSRQVLEOHIRULWVRLWFDQQRWEHGDPQHG
%XWVXLFLGH
7KLQNRILWDVDVKDGRZRI\RXUVHOI
6KHVWDJJHUHGWKURZQLQWRPRUDOFRQIXVLRQ7KHHDWLQJIODPHRI
XQFHUWDLQW\ZDVZRUVHWKDQ WKHS\UHDQGVPRNHVKHKDGNQRZQDVDJLUO,QKHU
DWLQ\YRLFHVSRNHFRROO\

,VFRQVFLRXVQHVVMXVWDSURSHUW\RIVSHFLDODOJRULWKPVVOLGLQJVKHHWVRI
LQIRUPDWLRQGLJLWDOSDFNHWVMXPSLQJWKURXJKFRQFHSWXDOKRRSV"0\GHDUGRQRW
VXSSRVHWKDWDQXPHULFDOPRGHOVLPXODWLQJ\RXZDWFKLQJDVXQVHWPXVWIHHO
WKHVDPHZD\\RXLWVORYHO\2ULJLQDOGLG,WLVVXUHO\SURILWOHVVWRGRXEW
WKHLQQHUOLYHVRIVLPXODWHGFRQVFLRXVQHVVZKHQQRERG\DVNVWKHVDPHTXHVWLRQ
RIDGGLQJPDFKLQHV(K"
6KHIHOWWKLVWLQ\YRLFHDVKHU9ROWDLUH,WFDOPHGKHUWKRXJKVKH
FRXOGQRWVD\ZK\
$VOLJKWEUHH]HVDLGWRKHU,QQHUORJLFVQRZVRRWKHFRPSHQVDWLQJ
SLHW\EXWVKHSDLGLWVQHZVQRPLQG


9ROWDLUHJRWKHUFDOPHGGRZQMXVWLQWLPH+HODERUHGKDUGMXVWWRNHHS
WKHPERWKUXQQLQJ'RGJLQJLQDQGRXWRIWKH6HFWRUVRI7UDQWRURQHVWHS
DKHDGRIWKH'LJLWDO%ORRGKRXQGVKHQHHGHGPRUHDQGPRUHFRPSXWLQJYROXPHWR
UXQWKHLUGHIHQVHV6KHGLGQRWNQRZWKDWWKH)RJDVKHKDGFKRVHQWR
SHUVRQLI\WKHGUHDGSUHVHQFHOD\MXVWRYHUWKHKRUL]RQ
6ZHDWEURNHRXWRQKLVEURZIURPWKHODERURINHHSLQJWKH)RJDWED\
ZLWKDKLJKSUHVVXUH]RQH,IHDUZHPXVWVRRQJUDSSOHZLWKWKH)RJ
-RDQKDGDFTXLUHGKHUVZRUGEXWLWZDVDWKLQDQGJOHDPLQJWKLQJPRUH
OLNHDUDSLHU,FDQFXWLW
$IRJ"
,ZRXOGVRRQHUWUXVWDZRPDQVHPRWLRQWKDQDPDQVUHDVRQ
+HUH\RXPD\EHULJKW+HFKXFNOHG6RPHWKLQJLQWKH)RJV
UHSUHVHQWDWLRQVXJJHVWVLWVRULJLQV
:KDWDUHWKH\"
1RWWKRVHVLPSOHEORRGKRXQGVVHWDIWHUXVE\WKDWIHOORZ1LP7KRVHZH
HYDGHG
,VOHZWKHP
7UXH%XWHYHQWKH)RJ7KLQJVOLYHKHUHLQWKHFUDQQLHVRIWKH7UDQWRU
0HVK,FDQVHQVHWKDWWKH\GLVOLNHXVGUDZLQJDWWHQWLRQWRWKLVOLWWOH
KLGHDZD\,IZHSURYRNHWKHUHDOZRUOGLWZLOOH[WLQJXLVKXVDQGWKHP
7KH\ERWKPDUFKHGDFURVVDTXLOWHGSODLQ$QJU\EOXHEHOOLHGFORXGV
VFXGGHGRYHUWKHIDUPRXQWDLQWRSVDQGUXVKHGGRZQDWWKHPYHHULQJDZD\RQO\
EHFDXVHRI9ROWDLUHVSUHVVXUH6ZHDWSRXUHGIURPKLPDQGVRDNHGKLVILQHU\
+HZDYHGDVRSSLQJZHWVOHHYHDWWKHVWRUP\WKXQGHUKHDGV7KDWFDQGHVWUR\
XV
<RXKDYHSURWHFWHGPHVRIDU1RZ,VKDOOVOLFHWKHP
7KH\OLYHLQWKHVDPHFUDFNVDQGFUDQQLHVZHGR,ILQGWKHPLW
HYHU\ZKHUH7KH\KDYHEHHQDWWKLVVSDFHVWHDOLQJJDPHORQJHU2QHPXVWDGPLUH
WKHLUDGURLWQHVV
$WHQGULORISXUSOHFLUUXVVQDNHGGRZQIURPWKHPRXQWDLQVDQGVTXLUPHG

LWVZD\DFURVVWKHSODLQ
9ROWDLUHVKRXWHG5XQ)O\LI\RXFDQ
,VKDOOILJKW
$OOKHUHLVPHWDSKRUIRUXQGHUO\LQJSURJUDPV<RXUVZRUGZLOOVOLFH
QRWKLQJ
0\IDLWKVKDOOFXW
7RRODWH7KH)RJZDVDILQJHURIVWHDPSRNLQJDWWKHP,WVFDOGHGKLV
ILQJHUWLSV9DSRUURVHIURPKLVODFHKLVRZQVZHDWERLOLQJDZD\)OHH
,VWDQGZLWK\RX6KHVZXQJKHUUDSLHU,WVWLSPHOWHG:LQGVKRZOHG
DURXQGWKHPF\FORQHVSOXFNHGDWWKHLUKDLU
7KH)RJIORZHGLQWRKLVQRVHDQGHDUVEX]]LQJOLNHYHQJHIXOEHHV
&RQIURQWPHKHVKRXWHGDWLW:KLUULQJUDWWOLQJWKH)RJLQYDGHGKLP$QG
DYRLFHKXPPHGLQKLVPRVWLQWLPDWHUHFHVVHV
:(>'21276((7+(:25/'$6<28@
>+$7($//0$1,)(67$7,216127$5,7+0(7,&@
6XUHO\ZHFDQVKDUHVXFKVLPSOHJURXQG+HVSUHDGKLVDUPV
H[SDQVLYHO\7KHUHLVFRPSXWDWLRQDOYROXPHIRUDOO
>:(@
>/,9($6)5$*0(176,15($/06<28,19$'(@
>$75,6.72866+28/'<28&$//$77(17,217286@
>:(@
>)25&(<2872.12::+$7<28$5(@
>0267+$7()8/2)$//.,1'6<28$5(@
,VWLOOLPSORUH\RXODUJHEHLQJ+HRSHQHGKLVDUPVOLSVUHDG\WR
SHUVXDGHUHDOL]LQJWKDWWKLVJHVWXUHZDVDYHU\KXPDQRQHDQGSRVVLEO\
PLVLQWHUSUHWHG
DQGDEUXSWO\WKHEHHVSUHVVHGLQ
7KHLUGURQHVEHFDPHWLQQ\VKULHNV+LGHRXVWKH\FUDPPHGLQXSRQ
VRPHWKLQJDWKLVYHU\FRUH7KH\MRVWOHGKLVJD]HLQZDUGDELOOLRQWLQ\H\HV
WDNLQJRYHUKLVLQVSHFWLQJOLJKWLQJKLVHYHU\VWHSZLWKDEOD]HRIDFWLQLF
JODUHPHUFLOHVV+HFRPSUHVVHG
+LVH\HJHQHUDOL]HGWDJJLQJDQHQVHPEOHRILQFRPLQJHOHPHQWVWH[WXUHV
OLQHVE\VHL]LQJRQDIUDJPHQWRXWOLQLQJLWZLWKDFRQWUDVWERXQGDU\7KHQD
VHSDUDWHVHJPHQWVTXHH]HGDQGSXVKHGDOOWKDWGHWDLOGRZQLQWRORZHUOHYHO
SURFHVVLQJ+DYLQJER[HGLQWKHSHUFHSWLRQWKHV\VWHPUHVSRQVHEHFDPHERUHG
ZLWKLWDQGVRXJKW PRUHLQWHUHVWLQJWKLQJVWRORRNDW
6RPHDUWLVWVDKLJKHUOHYHOUXPLQDWHGWKRXJKWWKHLUDXGLHQFHFRXOG
DEDQGRQDOOSUHMXGLFLDOH[SHFWDWLRQVDQGFRQYHQWLRQVWUHDWLQJHYHU\YLVXDO
HOHPHQWDVHTXDOO\VLJQLILFDQWRUZKDWLVWKHVDPHWKLQJLQVLJQLILFDQWDQG
VRRSHQWKHPVHOYHVWRIUHVKH[SHULHQFH 
$QRWKHUIUDJPHQWRIDKLJKHURUGHUFRQVWHOODWLRQVSRNHWKRXJKWVJOLGLQJ
OLNHSHZWHUILVKEHQHDWKWKHEHHVSLHUFLQJJODUH
%XWDVSHFLHVWKDWFRXOGWUXO\GRWKDWFRXOGVFDUFHO\HYDGHDIDOOLQJ
URFN&RXOGQRWGDQFHDQGJHVWXUH:RXOGVWDJJHUEOLQGO\SDVWQXDQFHDQG
LQWULFDF\WKHEHDXW\LQKRZWKHXQLYHUVHPDNHVURRPIRULWVGHWDLOV+RZ
QDWXUHUHFRQFLOHVDOOIRUFHVDQGEOLWKH WUDMHFWRULHV%HDXWLIXOSDWWHUQOLYHV
DWWKHPDUJLQEHWZHHQRUGHUDQGGLVRUGHUIODXQWLQJLQWULFDWHGHVLJQWKRXJK
HQGXULQJFRQWUDGLFWLRQDQGDZDVKZLWKSDVVLQJWURXEOHVLQWKHIDFHRIWKH
IOX[
9ROWDLUHVDZVXGGHQO\ZLWKLQKLVRZQLQQHUZRUNLQJVWKDWWKHKXPDQ
H[SHULHQFHRI%HDXW\VWDQGLQJLQYLRODWHEHIRUHWKHERULQJEDFNJURXQGZDV
UHFRJQLWLRQRIWKHGHHSHVWWHQGHQFLHVDQGWKHPHVRIWKHXQLYHUVHDVDZKROH
$OOFRQVLGHUHGLWZDVDPDUYHORXVO\SDUVLPRQLRXVFRUWLFDOZRUOGPDNLQJ

V\VWHP
)URPDQ DOJRULWKPLFVHHGVSURXWHG1XPEHUDQG2UGHUKROGLQJVZD\DERYH
WKH)OX[
<HWWKH%HHV
+HIHOWRYHUOD\LQJJHRPHWULHVSUHVVLQJLQXSRQKLPXSRQ-RDQ6KLIWLQJ
FRORUVIODWWHQHGLQWRSODQHVRILQWHUVHFWLQJJHRPHWULHVSHUVSHFWLYHV
GZLQGOLQJWZLVWLQJVZHOOLQJDJDLQLQWRKLVIDFHEORZLQJRXWWKHEDFNRI
KLV6HOIYROXPH
:KLUULQJVTXHH]LQJ7KH\ZHUHQRWKXPDQLQWKHLUSDWWHUQV
7UDQWRUV0HVKZDVLQKDELWHGQRWPHUHO\E\VLPVVXFKDVKLPVHOI
UHQHJDGHURXVWDERXWVRQWKHUXQ,WKRVWHGDIORUDDQGIDXQDXQVHHQEHFDXVH
WKHKLJKHUOLIHIRUPVKLG
7KH\KDGWR7KH\ZHUHRIDOLHQFXOWXUHVDQFLHQWHPSLUHVYDVWDQGVORZ
$EURDGYLVLRQXQIROGHGEHIRUHKLPQRWLQZRUGVEXWLQVWUDQJH
REOLTXHNLQHVWKHWLFV6SHHGLQJVHQVDWLRQVDFFHOHUDWLRQVORIWLQJOXUFKHV
DOOVRPHKRZPHUJLQJLQWRSLFWXUHVLGHDV+HFRXOGQRWUHPRWHO\VD\KRZKH
NQHZDQGXQGHUVWRRGIURPVXFKVFDWWHUVKRWLPSXOVHVEXWWKH\ZRUNHG
+HVHQVHG-RDQEHVLGHKLPQRWVSDWLDOO\EXWFRQFHSWXDOO\DVWKH\ERWK
ZDWFKHGDQGIHOWDQGNQHZ
7KHDQFLHQWDOLHQVLQWKH*DOD[\ZHUHFRPSXWHUEDVHGQRWRUJDQLF
7KH\GHULYHGIURPYDVWO\ROGHUFLYLOL]DWLRQVVXUYLYLQJWKHLURULJLQDO
IRXQGHUVZKRSHULVKHGLQWKHORQJ'DUZLQLDQUXQ6RPHFRPSXWHUFXOWXUHVZHUH
ELOOLRQVRI\HDUVROGRWKHUVYHU\UHFHQW
7KH\VSUHDGQRWYLDVWDUVKLSEXWE\HOHFWURPDJQHWLFDOO\EURDGFDVWLQJ
WKHLUVDOLHQWDVSHFWVLQWRRWKHUFRPSXWHUEDVHGVRFLHWLHV7KH(PSLUHKDGEHHQ
SHQHWUDWHGORQJDJRPXFKDVDYLUXVHQWHUVDQXQNQRZLQJERG\
+XPDQVKDGDOZD\VWKRXJKWRIVSUHDGLQJWKHLUJHQHVXVLQJVWDUVKLSV
7KHVHDOLHQVHOISURSDJDWLQJLGHDVVSUHDGWKHLUPHPHVWKHLUFXOWXUDO
WUXWKV
0HPHVFDQSURSDJDWHEHWZHHQFRPSXWHUVDVHDVLO\DVLGHDVIOLWEHWZHHQ
QDWXUDORUJDQLFEUDLQV%UDLQVDUHHDVLHUWRLQIHVWWKDQ'1$
0HPHVHYROYHGLQWXUQIDUIDVWHUWKDQJHQHV7KHRUJDQL]HG
FRQVWHOODWLRQVRILQIRUPDWLRQLQFRPSXWHUVHYROYHGLQFRPSXWHUVZKLFKDUH
IDVWHUWKDQEUDLQV1RWQHFHVVDULO\EHWWHURUZLVHUEXWIDVWHU$QGVSHHGZDV
WKHLVVXH
9ROWDLUHUHHOHGIURPWKHLPDJHVTXLFNYLYLGSHQHWUDWLRQV
7KH\DUHGHPRQV'LVHDVHV-RDQVKRXWHG+HKHDUGIHDUDQGFRXUDJH
DOLNHLQKHUVWUDLQHGZRUGV
,QGHHGWKHSODLQQRZFUDZOHGZLWKPDOLJQDQWVRUHVRR]LQJURW3XVWXOHV
SRNHGWKURXJKWKHFUXVW\VRLO7KH\EXOJHGVSURXWHG FDQFHURXVKHDGVOLNH
OLYLQJEOXHEODFNEUXLVHV7KHVHEXUVWVSRXWLQJVWHDPLQJSXV(UXSWLRQV
YRPLWHGIRXOQHVVRYHU9ROWDLUHDQG-RDQ6WLQNLQJVWUHDPVODSSHGDWWKHLU
GDQFLQJIHHW
7KHVQHH]LQJWKHFRXJKV-RDQVKRXWHG:HKDYHKDGWKHPDOODORQJ
7KH\
:HUHYLUXVHV7KHVHDOLHQVZHUHLQIHFWLQJXV9ROWDLUHVSODVKHG
WKURXJKFRPEHUVRIILOWK7KHVWUHDPVKDGFRDJXODWHGLQWRDODNHWKHQDQ
RFHDQ%UHDNHUVFXUOHGRYHUWKHPWXPEOLQJERWKLQWKHVFXPP\EURZQIURWK
:K\VXFKKRUULEOHPHWDSKRU" 9ROWDLUHFULHGRXWWRWKHSHZWHUVN\,W
ILOOHGZLWKFKXUQLQJVZDUPVRI%HHVDVKHEREEHGLQZDYHVRISXWUHI\LQJ
ZDVWHV
>:($5(1272)<285&25583725,*,16@
>+,*+(55($621)2//2::(@
>7+(:$52))/(6+8321)/(6+,6622172(1'@
>2)/,)(8321/,)(@
>$&52667+(7851,1*',6.2)6816@
>:+,&+21&(:$62856@

6RWKH\KDYHWKHLURZQDJHQGDIRUWKH(PSLUH9ROWDLUHVFRZOHG,
ZRQGHUKRZZHVKDOOOLNHLWZHRIIOHVK"
5(1'(=9286

5'DQHHO2OLYDZZDVDODUPHG,KDYHXQGHUHVWLPDWHG/DPXUNVSRZHU
:HDUHIHZWKH\DUHPDQ\'RUVVDLG6KHZDQWHGWRKHOSWKLVDQFLHQW
ZLVHILJXUHEXWFRXOGWKLQNRIQRWKLQJFRQFUHWHWRVXJJHVW:KHQLQGRXEW
FRPIRUW2UZDVWKDWWRRKXPDQ"
2OLYDZVDWDEVROXWHO\VWLOOXVLQJQRQHRIKLVRUGLQDU\IDFLDORUERG\
ODQJXDJHGHYRWLQJDOOFDSDFLW\WRFDOFXODWLRQ+HKDGFRPHVOLSSLQJLQRQD
SULYDWHVKXWWOHIURPWKHZRUPDQGQRZVDWZLWK'RUVLQDVXLWHRIWKH6WDWLRQ
,FDQQRWDVVHVVWKHVLWXDWLRQKHUH7KDWVHFXULW\RIILFHU\RXDUHFHUWDLQ
VKHZDVQRWDQDJHQWRIWKH$FDGHPLF3RWHQWDWH"
6KHDLGHGXVJUHDWO\DIWHUZHKDGUHWXUQHGWRRXUERGLHV
:LWK9DGGRGHDGVKHFRXOGKDYHEHHQSUHWHQGLQJLQQRFHQFH
7UXH,FDQQRWUXOHKHURXW
<RXUHVFDSHIURP7UDQWRUZHQWXQGHWHFWHG"'RUVWRXFKHGKLVKDQG,
XVHGHYHU\FRQWDFWHYHU\PHFKDQLVP,NQHZ%XW/DPXUNLVGHYLRXV
6RDP,LIQHHGEH
<RXFDQWEHHYHU\ZKHUH,VXVSHFW/DPXUNVRPHKRZFRUUXSWHGWKDW9DGGR
FKDUDFWHU
,EHOLHYHKHPXVWKDYHEHHQSODQWHGLQDGYDQFH'DQHHOVDLGDGDPDQWO\
H\HVQDUURZLQJ(YLGHQWO\KHKDGUHDFKHGDGHFLVLRQDQGVRKDGFRPSXWDWLRQDO
URRPIRUH[SUHVVLRQDJDLQ
,FKHFNHGKLVUHFRUGV+HVEHHQKHUHIRU\HDUV1R/DPXUNEULEHGKLP
RUSHUVXDGHGKLP
1RW/DPXUNKLPVHOIRIFRXUVH5'DQHHOVDLGSUHFLVHO\OLSVVHYHUH
$QDJHQW
,WULHGWRJHWDEUDLQVFDQRI9DGGREXWFRXOGQRWILQHVVHWKHOHJDO
LVVXHV6KHOLNHGLWZKHQ5'DQHHOXVHGKLVIDFLDOH[SUHVVLRQSURJUDPV%XW
ZKDWKDGKHGHFLGHG"
,FRXOGH[WUDFWPRUHIURPKLPKHVDLGQHXWUDOO\
'RUVFDXJKWWKHLPSOLFDWLRQ7KH)LUVW/DZVXVSHQGHGEHFDXVHRIWKH
=HURWK/DZ"
,WPXVWEH7KHJUHDWFULVLVDSSURDFKHVVZLIWO\
'RUVZDVVXGGHQO\TXLWHJODGWKDWVKHGLGQRWNQRZPRUHDERXWZKDWZDV
JRLQJRQLQWKH(PSLUH:HPXVWJHW+DULDZD\IURPKHUH7KDWLVWKHPRVW
LPSRUWDQWSRLQW
$JUHHG,KDYHDUUDQJHGKLJKHVWSULRULW\IRU\RXWZRWKURXJKWKH
ZRUPKROH
,WVKRXOGQWEHEXV\:H
,EHOLHYHWKH\H[SHFWH[WUDWUDIILFVRRQPRUH/DPXUNDJHQWV,IHDU
2UHYHQWKHPRUHLQVLGLRXVYDULHW\DVWKH$FDGHPLF3RWHQWDWHZRXOGHPSOR\
7KHQZHPXVWKXUU\:KHUHVKDOOZHJR"
1RWWR7UDQWRU
%XWZHOLYHWKHUH+DULZRQWOLNHEHLQJDYDJDERQG
(YHQWXDOO\\HVEDFNWR7UDQWRU3HUKDSVVRRQ%XWIRUQRZDQ\ZKHUH
HOVH
,OODVN+DULLIWKHUHLVDQ\VSHFLDOZRUOGKHSUHIHUV
5'DQHHOIURZQHGORVWLQWKRXJKW:LWKDEVHQWPLQGHGJUDFHKHVFUDWFKHG
KLVQRVHWKHQKLVH\HEDOO'RUVIOLQFKHGEXWDSSDUHQWO\5'DQHHOKDGVLPSO\
DOWHUHGKLVQHXURFLUFXLWU\DQGWKLVZDVDQRUGLQDU\JHVWXUH6KHWULHGWR
LPDJLQHWKHXVHIRUVXFKHGLWLQJDQGFRXOGQRW%XWWKHQKHKDGFRPHWKURXJK
PLOOHQQLDRIZLQQRZLQJVKHFRXOGQRWWUXO\LPDJLQHHLWKHU
1RW+HOLFRQKHVDLGVXGGHQO\6HQWLPHQWDOLW\DQGQRVWDOJLDPLJKW
SODXVLEO\OHDG+DULWKHUH

9HU\ZHOO7KDWOHDYHVRQO\WZHQW\ILYHPLOOLRQRUVRFKRLFHVRIZKHUH
WRKLGH
5'DQHHOGLGQRWODXJK
B
3$57

67$56/,.(*5$,16
2)6$1'

B
62&,20(75,&6RQHRIWKHPRVWYLWDOTXHVWLRQVVWLOOXQUHVROYHGLVWKH
JHQHUDOSUREOHPRI(PSLUHVRFLDOVWDELOLW\7KLVUHVHDUFKVHHNVWRILQGKRZ
ZRUOGVNHHSIURPYHHULQJLQWRF\FOHVRIERUHGRP DIDFWRUQHYHUWREH
XQGHUHVWLPDWHGLQKXPDQDIIDLUV DQGUHYLWDOL]DWLRQ1R,PSHULDOV\VWHPFRXOG
HQGXUHWKHMDJJHGFKDQJHVDQGPDLQWDLQVWHDG\HFRQRPLFIORZV+RZZDVWKLV
VPRRWKLQJDFKLHYHG"DQGPLJKWVXFKGDPSHUVWKDW,PSHULDOVRFLHW\KDGVWLOO
VRPHKRZIDLO"1RSURJUHVVZDVPDGHLQWKLVDUHDXQWLO


(1&<&/23(',$*$/$&7,&$

7KHVN\WXPEOHGGRZQ+DUL6HOGRQUHHOHGDZD\IURPLW
1RHVFDSH7KHDZIXOEOXHZHLJKWUXVKHGDWKLPVZDUPLQJGRZQWKHIODQNV
RIWKHVWHHSOHGWRZHUV&ORXGVFUXVKHGOLNHZHLJKWV
+LVVWRPDFKOXUFKHG$FLGEXUQHGKLVWKURDW7KHGHHSKDUGEOXHRI
HQGOHVVVSDFHVWKUXVWKLPGRZQZDUGOLNHDGHHSRFHDQFXUUHQW6SLUHVVFUDSHG
DJDLQVWWKHIDOOLQJVN\DQGKLVEUHDWKFDPHLQUDJJHGJDVSV
+HVSXQDZD\IURPWKHSHUSHWXDOFKDRVRIVN\DQGEXLOGLQJVDQGIDFHGD
ZDOO$PRPHQWEHIRUHKHKDGEHHQZDONLQJQRUPDOO\DORQJDFLW\VWUHHWZKHQ
VXGGHQO\WKHZHLJKWRIWKHEOXHERZODERYHKDGORRPHGDQGWKHSDQLFKDG
JDWKHUHGKLPXS
+HIRXJKWWRFRQWUROKLVEUHDWKLQJ&DUHIXOO\KHLQFKHGDORQJWKHZDOO
KROGLQJWRWKHVOLFNFRROJOD]H7KHRWKHUVKDGNHSWZDONLQJ7KH\ZHUH
VRPHZKHUHDKHDGEXWKHGLGQRWGDUHORRNIRUWKHP)DFHWKHZDOO6WHSVWHS

7KHUH$GRRU+HVWHSSHGEHIRUHLWDQGWKHVODEVOLGDVLGH+HVWXPEOHG
LQZHDNZLWKUHOLHI
+DULZHZHUHZKDWVZURQJ" 'RUVUXVKHGRYHUWRKLP
,,GRQWNQRZ7KHVN\
$KDFRPPRQV\PSWRPDZRPDQVERRPLQJYRLFHFXWLQ<RX7UDQWRULDQV
GRKDYHWRDGMXVW\RXNQRZ
+HORRNHGXSVKDNLO\LQWRWKHEURDGEHDPLQJIDFHRI%XWD)\UQL[WKH
3ULQFLSDO0DWURQRI6DUN,,ZDVDOOULJKWEHIRUH
<HVLWVTXLWHDQRGGDLOPHQW)\UQL[VDLGDUFKO\<RX7UDQWRULDQV
DUHXVHGWRHQFORVHGFLW\RIFRXUVH$QG\RXFDQRIWHQWDNHZHOOWR
DEVROXWHO\RSHQVSDFHVLI\RXZHUHUHDUHGRQVXFKZRUOGV
$VKHZDV'RUVSXWLQVKDUSO\&RPHVLW
+DULVSULGHZDVDOUHDG\UHFRYHULQJ1R,PILQH
+HVWUDLJKWHQHGDQGWKUXVWKLVVKRXOGHUVEDFN/RRNILUPHYHQLI\RX
GRQWIHHOLW
)\UQL[ZHQWRQ%XWDSODFHLQEHWZHHQOLNH6DUNRQLDVWHQNOLFNWDOO
WRZHUVVRPHKRZWKDWH[FLWHVDYHUWLJRZHKDYHQRWXQGHUVWRRG
+DULXQGHUVWRRGLWDOOWRRZHOOLQKLVOXUFKLQJVWRPDFK+HKDGRIWHQ
WKRXJKWWKDWWKHSULFHRIOLYLQJLQ7UDQWRUZDVDJDWKHULQJIHDURIODUJH
VSDFHVEXW3DQXFRSLDKDGVHHPHGWRGLVSHOWKDWLGHD1RZKHIHOWWKH

FRQWUDVW7KHWDOOEXLOGLQJVKDGHYRNHG7UDQWRUIRUKLP%XWWKH\GUHZKLV
JD]HXSZDUGDORQJVWHHSHQLQJSHUVSHFWLYHVLQWRDVN\WKDWKDGVXGGHQO\
VHHPHGOLNHDKXJHSOXQJLQJZHLJKW
1RWUDWLRQDORIFRXUVH3DQXFRSLDKDGWDXJKWKLPWKDWPDQZDVQRW
PHUHO\DUHDVRQLQJPDFKLQH7KLVVXGGHQSDQLFKDGGHPRQVWUDWHGKRZD
IXQGDPHQWDOO\XQQDWXUDOFRQGLWLRQOLYLQJLQVLGH7UDQWRUIRUGHFDGHVFRXOG
ZDUSWKHPLQG
/HWVJRXSKHVDLGZHDNO\
7KHOLIWVHHPHGFRPIRUWLQJHYHQWKRXJKWKHSUHVVRIDFFHOHUDWLRQDQG
SRSSLQJHDUVDVWKH\FOLPEHGVHYHUDONOLFNVVKRXOGE\PHUHORJLFKDYH
XQVHWWOHGKLP
$IHZPRPHQWVODWHUDVWKHRWKHUVFKDWWHGLQDUHFHSWLRQORXQJH+DUL
SHHUHGRXWDWWKHVWUHWFKLQJFLW\VFDSHDQGWULHGWRFDOPKLVXQHDVH
6DUNKDGORRNHGORYHO\RQWKHLUDSSURDFK$VWKHK\SHUVSDFHF\OLQGHU
VNDWHGGRZQWKURXJKWKHXSSHUDLUKHKDGWDNHQLQDIXOOYLHZRILWVOXVK
EHDXWLHV
$WWKHWHUPLQDWRUYDOOH\VVDQNLQWRGDUNQHVVZKLOHDFKDLQRIVQRZ\
PRXQWDLQVJOHDPHGEH\RQG/DWHLQWKH HYHQLQJMXVWEH\RQGWKHWHUPLQDWRUWKH
IUHVKSHDNHGPRXQWDLQVJORZHGUHGRUDQJHOLNHOLYHFRDOV+HKDGQHYHUEHHQ
RQHWRFOLPEEXWVRPHWKLQJKDGEHFNRQHG0RXQWDLQWRSVFOHDYHGWKHVKHHWVRI
FORXGVOHDYLQJDZDNHOLNHWKDWRIDVKLS7URSLFDOWKXQGHUKHDGVOLWE\
OLJKWQLQJIODVKHVDWQLJKWUHFDOOHGWKHEORRPLQJEXGVRIZKLWHURVHV
7KHJORULHVRIKXPDQLW\KDGEHHQMXVWDVVWULNLQJWKHVKLQLQJ
FRQVWHOODWLRQVRIFLWLHVDWQLJKWHQPHVKHGE\DJOLWWHULQJZHERIKLJKZD\V
+LVKHDUWILOOHGZLWKSULGHDWKXPDQDFFRPSOLVKPHQWV8QOLNH7UDQWRUV
DGYDQFHGFRQWUROKHUHWKHKDQGRIKLVIHOORZ(PSLUHFLWL]HQVZDVVWLOO
FDVWLQJVSDFLRXVGHVLJQVXSRQWKHSODQHWVFUXVW7KH\KDGVKDSHGDUWLILFLDO
VHDVDQGHOOLSWLFDOZDWHUEDVLQVJUHDWSODLQVRIWLNWRNFXOWLYDWHGILHOGV
LPPDFXODWHRUGHUDULVLQJIURPRQFHYLUJLQODQGV
$QGQRZVWDQGLQJLQWKHWRSPRVWIORRURIDQHOHJDQWO\VOLPVSLUHDW
WKHJHRPHWULFKHDUWRI6DUNRQLDWKHFDSLWDOFLW\KHVDZUXLQDWLRQFRPLQJ
,QWKHGLVWDQFHKHVDZVWUHWFKLQJWRWKHVN\ WKUHHWZLQLQJFROXPQVQRW
PDMHVWLFVSLUHVEXWVPRNH
7KDWILWV\RXUFDOFXODWLRQVGRHVQWLW"'RUVVDLGEHKLQGKLP
'RQWOHWWKHPNQRZKHZKLVSHUHG
,WROGWKHPZHQHHGHGDIHZPRPHQWVRISULYDF\WKDW\RXZHUH
HPEDUUDVVHGE\\RXUYHUWLJR
,DPRUZDV%XW\RXUHULJKWWKHSV\FKRKLVWRULFDOSUHGLFWLRQV,PDGH
DUHLQWKDWFKDRVRXWWKHUH
7KH\GRVHHPRGG
2GG"7KHLULGHDVDUHGDQJHURXVUDGLFDO+HVSRNHZLWKUHDORXWUDJH
&ODVVFRQIXVLRQVVKLIWLQJSRZHUD[HV7KH\UHVKUXJJLQJRIIWKHYHU\GDPSLQJ
PHFKDQLVPVWKDWNHHSWKH(PSLUHRUGHUO\
7KHUHZDVDFHUWDLQZHOOMR\LQWKHVWUHHWV
$QGGLG\RXVHHWKRVHWLNWRNV")XOO\DXWRQRPRXV
<HVWKDWZDVGLVWXUELQJ
7KH\UHSDUWDQGSDUFHORIWKHUHVXUUHFWLRQRIVLPV$UWLILFLDOPLQGV
DUHQRORQJHUWDERRKHUH7KHLUWLNWRNVZLOOJHWPRUHDGYDQFHG6RRQ
,PPRUHFRQFHUQHGZLWKWKHLPPHGLDWHOHYHORIGLVUXSWLRQ'RUVVDLG
7KDWPXVWJURZ5HPHPEHUP\1GLPHQVLRQDOSORWVRISV\FKRKLVWRULFDO
VSDFH",UDQWKH6DUNFDVHRQP\SRFNHWFRPSXWHUFRPLQJGRZQIURPRUELW,I
WKH\NHHSRQWKLVZD\ZLWKWKHLU1HZ5HQDLVVDQFHWKLVZKROHSODQHWZLOOZKLUO
DZD\LQVSDUNV6HHQLQ1GLPHQVLRQVWKHIODPHVZLOOEHEULJKWDQGTXLFN
OXULGWKHQVPROGHULQWRDVK7KHQWKH\OOYDQLVKIURPP\PRGHOHQWLUHO\LQWR
DEOXUWKHVWDWLFRIXQSUHGLFWDELOLW\
6KHSXWDKDQGRQKLVDUP&DOPGRZQ7KH\OOQRWLFH
+HKDGQRWUHDOL]HGWKDWKHIHOWVRGHHSO\7KH(PSLUHZDVRUGHUDQG

KHUH

$FDGHPLFLDQ6HOGRQGRXVWKHKRQRURIJDWKHULQJZLWKVRPHRIRXU
OHDGLQJ1HZ5HQDLVVDQFHOHDGHUV%XWD)\UQL[JUDVSHGKLVVOHHYHDQGWXJJHG
KLPEDFNWRWKHRUQDWHUHFHSWLRQ7KH\KDYHVRPXFKWRWHOO\RX
$QGKHKDGZDQWHGWRFRPHKHUH7ROHDUQZK\WKHGDPSHUVWKDWNHSW
ZRUOGVVWDEOHKDGIDLOHGKHUH7RVHHWKHIHUPHQWSLFNXSWKHVFHQWRI
FKDQJH7KHUHZDVSOHQW\RISDVVLRQDWHDUJXPHQWRIVRDULQJDUWRIHFFHQWULF
PHQDQGZRPHQZHGGHGWRWKHLUJUDQGSURMHFWV+HKDGVHHQWKHVHDWGL]]\LQJ
VSHHG
%XWLWZDVDOOWRRPXFK6RPHWKLQJLQKLPUHEHOOHG7KHQDXVHDKHKDG
VXIIHUHGLQWKHRSHQVWUHHWVZDVDV\PSWRPRIVRPHGHHSHUUHYXOVLRQJXWGHHS
DQGGDUN
%XWD)\UQL[KDGEHHQQDWWHULQJRQDQGVRPHRIRXUPRVWEULOOLDQW
PLQGVDUHZDLWLQJWRPHHW\RX'RFRPH
+HVXSSUHVVHGDJURDQDQGORRNHGEHVHHFKLQJO\DW'RUV6KHVPLOHGDQG
VKRRNKHUKHDG)URPWKLVKD]DUGVKHFRXOGQRWVDYHKLP


,I%XWD)\UQL[KDGEHJXQDVDJUDLQRIVDQGLQKLVVKRHVKHZDVQRZD
ERXOGHU
6KHVLPSRVVLEOH<DN\DN\DN/RRNKHVDLGWR'RUVZKHQWKH\ZHUH
DWODVWDORQH,RQO\FDPHWR6DUNEHFDXVHRISV\FKRKLVWRU\QRWIRU,PSHULDO
EDFNVODSSLQJ+RZGLGWKHVRFLDOGDPSHUVIDLOKHUH":KDWVRFLDOPHFKDQLVP
VOLSSHGDOORZLQJWKLVUDXFRXV5HQDLVVDQFHRIWKHLUV"
0\+DUL,IHDUWKDW\RXGRQRWKDYHWKHQRVHWRVQLIIRXWWUHQGVIURP
OLIHLWVHOI,WSUHVVHVLQRQ\RX'DWDLVPRUH\RXUSURYLQFH
*UDQWHG,WVXQVHWWOLQJDOOWKLVIHUPHQW%XW,PVWLOOLQWHUHVWHGLQ
KRZWKH\UHFRYHUHGWKRVHROGVLPXODWLRQV,I,FRXOGJHWRXWRIWDNLQJWRXUV
RIWKHLU5HQDLVVDQFHWKURXJKQRLV\VWUHHWV
,TXLWHDJUHH'RUVVDLGPLOGO\7HOOWKHP\RXZDQWWRGRVRPHZRUN
:HOOVWD\LQRXUURRPV,PFRQFHUQHGDERXWVRPHRQHWUDFNLQJXVKHUH:HUH
MXVWRQHZRUPMXPS DZD\IURP3DQXFRSLD
,OOQHHGWRDFFHVVP\RIILFHILOHV$TXLFNZRUPOLQNWR7UDQWRU
1R\RXFDQWZRUNXVLQJDOLQN/DPXUNFRXOGWUDFHWKDWHDVLO\
%XW,KDYHQWWKHUHFRUGV
<RXOOKDYHWRPDNHGR
+DULVWDUHGRXWDWWKHYLHZZKLFKKHKDGWRDGPLWZDVVSHFWDFXODU
*UHDWVWUHWFKLQJYLVWDV5LRWRXVJURZWK
%XWPRUHILUHVERLOHGXSRQWKHKRUL]RQ7KHUHZDVJDLHW\LQWKHVWUHHWV
RI6DUNRQLDDQGDQJHUDVZHOO7KHODERUDWRULHVVHHWKHGZLWKIUHVKHQHUJLHV
LQQRYDWLRQEULVWOHGHYHU\ZKHUHWKHDLUVHHPHGWRVLQJZLWKFKDQJHDQGFKDRV
+LVSUHGLFWLRQVZHUHVWDWLVWLFDODEVWUDFW7RVHHWKHPFRPLQJWUXHVR
TXLFNO\ZDVVREHULQJ+HGLGQRWOLNHWKHVZLIWWXUEXOHQWIHHOWRWKLVSODFH
DWDOOHYHQLIKHGLGXQGHUVWDQGLW)RUQRZ
7KH H[WUHPHVRIZHDOWKDQGGHVWLWXWLRQZHUHDSSDOOLQJ&KDQJHEURXJKW
WKDWKHNQHZ
2Q+HOLFRQKHKDGVHHQSRYHUW\DQGOLYHGLWWRR$VDER\KLV
JUDQGPRWKHUKDGLQVLVWHGRQEX\LQJKLPDUDLQFRDWVHYHUDOVL]HVWRRODUJHWR
JHWPRUHXVHRXWRILW+LV PRWKHUGLGQWOLNHKLPSOD\LQJNLFNEDOOEHFDXVH
KHZRUHRXWKLVVKRHVWRRTXLFNO\
+HUHRQ6DUNDVRQ+HOLFRQWKHWUXO\SRRUZHUHRIILQWKHKLQWHUODQGV
6RPHWLPHVWKH\FRXOGQWHYHQDIIRUGIRVVLOIXHOV0HQDQGZRPHQSHHUHGRYHUD
PXOHVDVVDOOGD\DVLWSORGGHGGRZQDIXUURZ
6RPHLQKLVRZQIDPLO\KDGIOHGWKHKDUGVFUDEEOHOLIHIRUDVVHPEO\
OLQHV$JHQHUDWLRQRUWZRDIWHUWKDWIDFWRU\ZRUNHUVKDGVFUDSHGWRJHWKHU

HQRXJKPRQH\WREX\DFRPPHUFLDOGULYHUVOLFHQVH+DULUHPHPEHUHGKLVXQFOHV
DQGDXQWVDFFXPXODWLQJLQMXULHVMXVWDVKLVIDWKHUKDG1RWKDYLQJPRQH\WKH
SDLQFDPHEDFNWRWKHP\HDUVODWHULQEXVWHGMRLQWVDQGXQIL[HGOHJVLQMXULHV
VWD\LQJZLWKWKHPLQDZD\WKDWD7UDQWRULDQZRXOGILQGDVWRQLVKLQJ
+HOLFRQLDQVLQUXQGRZQVKDFNVKDGZRUNHGRQIDUPPDFKLQHU\WKDWZDV
ELJSRZHUIXOGDQJHURXVDQGFRVWPRUHWKDQDQ\RIWKHPZRXOGHDUQLQD
OLIHWLPH7KHLUOLYHVZHUHREVFXUHIDUIURPWKHUDPSDUWVRIKDXJKW\(PSLUH
:KHQGHDGDQGJRQHWKH\OHIWQRWKLQJEXWLPSDOSDEOHPHPRU\WKHOLJKWDVKRI
DEXWWHUIO\ZLQJLQFLQHUDWHGLQDIRUHVWILUH
,QDVWDEOHVRFLHW\WKHLUSDLQZRXOGEHOHVV+LVIDWKHUKDGGLHGZKLOH
ZRUNLQJRYHUWLPHRQDELJPDFKLQH+HKDGEHHQZLSHGRXWWKH\HDUEHIRUHDQG
ZDVVWUXJJOLQJWRPDNHDFRPHEDFN
(FRQRPLFVXUJHDQGHEEKDGNLOOHGKLVIDWKHUDVVXUHO\DVWKHVWHHO
JURXQGSRXQGHUKDGZKHQLWUROOHGRYHURQKLP7KHOXUFKRIGLVWDQWPDUNHWV
KDGPXUGHUHGDQG+DULKDGNQRZQWKHQZKDWKHPXVWGR7KDWKHZRXOGGHIHDW
XQFHUWDLQW\LWVHOIILQGRUGHULQVHHPLQJGLVFRUG3V\FKRKLVWRU\FRXOGEHDQG
KROGVZD\
+LVIDWKHU
$FDGHPLFLDQ%XWD)\UQL[VSHQHWUDWLQJYRLFHVQDWFKHGKLPDZD\IURP
KLVWKRXJKWV
8KWKDWWRXURIWKHSUHFLQFWV,,UHDOO\GRQWIHHO
2KWKDWLVQRWSRVVLEOH,IHDU$GRPHVWLFGLVWXUEDQFHPRVW
XQIRUWXQDWH6KHKXUULHGRQ,GRZDQW\RXWRVSHDNZLWKRXUWLNWRN
HQJLQHHUV7KH\KDYHGHYLVHGQHZDXWRQRPRXVWLNWRNV7KH\VD\WKH\FDQ
PDLQWDLQFRQWUROXVLQJRQO\WKUHHEDVLFODZVLPDJLQH
'RUVFRXOGQRWPDVNKHUVXUSULVH6KHRSHQHGKHUPRXWKKHVLWDWHG
FORVHGLW+DULDOVRIHOWDODUPEXW%XWD)\UQL[ZHQWULJKWRQEXEEOLQJRYHU
QHZYHQWXUHVRQWKH6DUNLDQKRUL]RQ7KHQKHUH\HEURZVOLIWHGDQGVKHVDLG
EULJKWO\2K\HV,GRKDYHHYHQPRUHZHOFRPHQHZV$Q,PSHULDOVTXDGURQKDV
MXVWFRPHWRFDOO
2K"'RUVVKRWEDFN8QGHUZKRVHFRPPDQG"
$5DJDQW'LYHQH[VHFWRUJHQHUDO,MXVWVSRNHWRKLP
'DPQ'RUVVDLG+HVD/DPXUNKHQFKPDQ
<RXUHVXUH"+DULDVNHG+HNQHZKHUVOLJKWSDXVHKDGEHHQWRFRQVXOW
KHULQWHUQDOILOHV
'RUVQRGGHG%XWD)\UQL[VDLGFDOPO\:HOO,DPVXUHKHZLOOEH
KRQRUHGWRWDNH\RXEDFNWR7UDQWRUZKHQ\RXDUHILQLVKHGZLWK\RXUYLVLW
KHUH:KLFKZHKRSHZLOOQRWEHVRRQRI
+HPHQWLRQHGXV"'RUVDVNHG
+HDVNHGLI\RXZHUHHQMR\LQJ
'DPQ+DULVDLG
$VHFWRUJHQHUDOFRPPDQGVDOOWKHZRUPOLQNVLIKHZLVKHV\HV"'RUV
DVNHG
:HOO,VXSSRVHVR)\UQL[ORRNHGSX]]OHG
:HUHWUDSSHG+DULVDLG
)\UQL[VH\HVZLGHQHGLQVKRFN%XWVXUHO\\RXD)LUVW0LQLVWHU
FDQGLGDWHQHHGIHDUQR
4XLHW'RUVVLOHQFHGWKHZRPDQZLWKDVWHUQJODQFH$WEHVWWKLV
'LYHQH[ZLOOERWWOHXVXSKHUH
$WZRUVWWKHUHZLOOEHDQDFFLGHQW+DULVDLG
,VWKHUHQRRWKHUZD\WRJHWRII6DUN"'RUVGHPDQGHGRI)\UQL[
1R,FDQWUHFDOO
7KLQN
6WDUWOHG)\UQL[VDLG:HOORIFRXUVHZHGRKDYHSULYDWHHUVZKRDW
WLPHVXVHWKHZLOGZRUPVEXW


,Q+DULVVWXGLHVKHKDGGLVFRYHUHGDFXULRXVOLWWOHODZ1RZKHWXUQHG
LWLQKLVIDYRU
%XUHDXFUDF\LQFUHDVHVDVDGRXEOLQJIXQFWLRQLQWLPHJLYHQWKH
UHVRXUFHV$WWKHSHUVRQDOOHYHOWKHFDXVHZDVWKHSHUVLVWHQWGHVLUHRIHYHU\
PDQDJHUWRKLUHDWOHDVWRQHDVVLVWDQW7KLVSURYLGHGWKHWLPHFRQVWDQWIRU
JURZWK
(YHQWXDOO\WKLVFROOLGHGZLWKWKHFDUU\LQJFDSDFLW\RIVRFLHW\*LYHQ
WKHWLPHFRQVWDQWDQGWKHFDSDFLW\RQHFRXOGSUHGLFWDSODWHDXOHYHORI
EXUHDXFUDWLFRYHUKHDGRUHOVHLIJURZWKSHUVLVWHGWKHGDWHRIFROODSVH
3UHGLFWLRQVRIWKHORQJHYLW\RIEXUHDXFUDF\GULYHQVRFLHWLHVILWD SUHFLVH
FXUYH6XUSULVLQJO\WKHVDPHVFDOLQJODZVZRUNHGIRUPLFURVRFLHWLHVVXFKDV
ODUJHDJHQFLHV
7KHFRUSXOHQW,PSHULDOEXUHDXVRQ6DUNFRXOGQRWPRYHVZLIWO\6HFWRU
*HQHUDO'LYHQH[VVTXDGURQKDGWRVWD\LQSODQHWDU\VSDFHVLQFHLWZDVSD\LQJ
DSXUHO\IRUPDOYLVLW1LFHWLHVZHUHVWLOOREVHUYHG'LYHQH[GLGQRWZDQWWR
XVHEUXWHIRUFHZKHQDZDLWLQJJDPHZRXOGZRUN
,VHH7KDWJLYHVXVDIHZGD\V'RUVFRQFOXGHG
+DULQRGGHG+HKDGGRQHWKHUHTXLUHGVSHDNLQJQHJRWLDWLQJGHDOLQJ
SURPLVLQJ IDYRUVDOODFWLYLWLHVKHGLVOLNHGLQWHQVHO\'RUVKDGGRQHWKH
EDFNJURXQGGLJJLQJ7R"
7UDLQ
:RUPKROHVZHUHODE\ULQWKVQRWPHUHWXQQHOVZLWKWZRHQGV7KHODUJH
RQHVKHOGILUPIRUSHUKDSVELOOLRQVRI\HDUVQRQHODUJHUWKDQDKXQGUHG
PHWHUVDFURVVKDG\HWFROODSVHG7KHVPDOOHVWFRXOGVRPHWLPHVODVWRQO\KRXUV
DWEHVWD\HDU,QWKHWKLQQHUZRUPVIOH[HVLQWKHZRUPZDOOVGXULQJSDVVDJH
FRXOGDOWHUWKHHQGSRLQWRIDWUDYHOHUVWUDMHFWRU\
:RUVHZRUPVLQWKHLUODVWVWDJHVVSDZQHGWUDQVLHQWGRRPHG\RXQJWKH
ZLOGZRUPV$VGHIRUPDWLRQVLQVSDFHWLPHVXSSRUWHGE\QHJDWLYHHQHUJ\
GHQVLW\VWUXWVZRUPKROHVZHUHLQKHUHQWO\ULFNHW\$VWKH\IDLOHGVPDOOHU
GHIRUPDWLRQVWZLVWHGDZD\
6DUNKDGVHYHQZRUPKROHV2QHZDVG\LQJ,WKXQJDOLJKWKRXUDZD\
VSLWWLQJRXWZLOGZRUPVWKDWUDQJHGIURPDKDQGVZLGWKVL]HXSWRVHYHUDO
PHWHUV
$IDLUO\VL]DEOHZLOGZRUPKDGVSURXWHGRXWRIWKHVLGHRIWKHG\LQJ
ZRUPVHYHUDOPRQWKVEHIRUH7KH,PSHULDOVTXDGURQGLGQRWNQRZRIWKLVRI
FRXUVH$OOZRUPVZHUHWD[HGVRDIUHHZRUPKROHZDVDERQDQ]D5HSRUWLQJ
WKHLUH[LVWHQFHZHOORIWHQDSODQHWVLPSO\GLGQWJHWDURXQGWRWKDWXQWLO
WKHZLOGZRUPKDGIL]]OHGDZD\LQDVSUD\RIVXEDWRPLFVXUI
8QWLOWKHQSLORWVFDUULHGFDUJRWKURXJKWKHP7KDWZLOG ZRUPVFRXOG
HYDSRUDWHZLWKRQO\VHFRQGVZDUQLQJPDGHWKHLUWUDGHGDQJHURXVKLJKO\SDLG
DQGOHJHQGDU\
:RUPULGHUVZHUHWKHVRUWRISHRSOHZKRDVFKLOGUHQOLNHGWRULGHWKHLU
ELF\FOHVQRKDQGHGEXWZLWKDGLIIHUHQFHWKH\URGHRIIURRIWRSV
%\DQRGGORJLFWKDWNLQGRIFKLOGJUHZXSDQGJRWWUDLQHGDQGHYHQ
SDLGWD[HVEXWLQVLGHWKH\VWD\HGWKHVDPH
2QO\ULVNWDNHUVFRXOGSRZHUWKURXJKWKHFKDRWLFIOX[RIDWUDQVLHQW
ZRUPDQGWDNHWKHULVNVWKDWZRUNHGQRWWDNHWKRVHWKDWGLGQWDQGOLYH
7KH\KDGHOHYDWHGEUDYDGRWRLWVILQHUSRLQWV
7KLVZLOGZRUPLWVWULFN\DJUL]]OHGZRPDQWROG+DULDQG'RUV1R
URRPIRUDSLORWLI\RXERWKJR
:HPXVWVWD\WRJHWKHU'RUVVDLGZLWKILQDOLW\
7KHQ\RXOOKDYHWRSLORW
:HGRQWNQRZKRZ+DULVDLG
<RXUHLQOXFN7KHOLQHGZRPDQJULQQHGZLWKRXWKXPRU7KLVZLOG\V
VKRUWHDV\

:KDWDUHWKHULVNV"'RUVGHPDQGHGVWLIIO\,PQRWDQLQVXUDQFH
DJHQWODG\
,LQVLVWWKDWZHNQRZ
/RRNODG\ZHOOWHDFK\RX7KDWVWKHGHDO
,KDGKRSHGIRUDPRUH
*LYHLWDUHVWRULWVQRGHDODWDOO


,QWKHPHQVURRPDERYHWKHXULQDOKHXVHG+DULVDZDVPDOOJROG
SODTXH6HQLRU3LORW-RTXDQ%HXQQUHOLHYHGKLPVHOIKHUH2FWGHQW
(YHU\XULQDOKDGDVLPLODUSODTXH7KHUHZDVDZDVKLQJPDFKLQHLQWKH
ORFNHUURRPZLWKDODUJHSODTXHRYHULWUHDGLQJ7KHHQWLUHUG3LORW&RUSV
UHOLHYHGWKHPVHOYHVKHUH0DUODVV
3LORWKXPRU,WWXUQHGRXWWREHDEVROXWHO\SUHGLFWLYH+HPHVVHG
KLPVHOIRQKLVILUVWWUDLQLQJUXQ
$VLIWRPDNHWKHDEVROXWHO\IDWDOOHQJWKRIDFORVLQJZRUPKROHOHVV
GDXQWLQJWKHZRUPIO\HUVKDGHVFDSHSODQV7KHVHFRXOGRQO\ZRUNLQWKH
IULQJLQJILHOGVRIWKHZRUPZKHUHJUDYLW\ZDVEHJLQQLQJWRZDUSDQGVSDFH
WLPHZDVRQO\PLOGO\FXUYHG8QGHUWKHVHDWZDVDVPDOOSRZHUIXOURFNHWWKDW
SURSHOOHGWKHHQWLUHFRFNSLWRXWDXWRPDWLFDOO\KHDGLQJDZD\IURPWKHZRUP
7KHUHLVDOLPLWWRKRZPXFKVHOIDFWXDWHGWHFKRQHFDQSDFNLQWRD
VPDOOFRFNSLWWKRXJK:RUVH ZRUPPRXWKVZHUHDOLYHZLWKHOHFWURG\QDPLF
ZHDWKHUZULWKLQJIRUNVRIOLJKWQLQJEOXHGLVFKDUJHVUHGPDJQHWLFZKRUOV
OLNHWRUQDGRHV(OHFWULFDOJHDUGLGQWZRUNZHOOLIDEDGVWRUPZDVEUHZLQJDW
WKHPRXWK0RVWRIWKHHPHUJHQF\FRQWUROVZHUHPDQXDO+RSHOHVVO\DUFKDLFEXW
XQDYRLGDEOH
6RKHDQG'RUVZHQWWKURXJKDWUDLQLQJSURJUDP4XLWHVRRQLWZDVFOHDU
WKDWLIKHXVHGWKH(MHFWFRPPDQGKHKDGEHWWHUEHVXUHWKDWKHKDGKLVKHDG
WLOWHGEDFN7KDWLVXQOHVVKHZDQWHGKLVNQHHFDSVWRVODPXSLQWRKLVFKLQ
ZKLFKZRXOGEHXQIRUWXQDWHEHFDXVHKHZRXOGEHWU\LQJWRFKHFNLIKLVFDQRS\
KDGJRQHLQWRDVSLQ7KLVZRXOGEHEDGQHZVEHFDXVHKLVWUDMHFWRU\PLJKWJHW
ZDUSHGEDFNLQWRWKHZRUP7RFRUUHFWDQ\VSLQKHKDGWR\DQNRQDUHGOHYHU
DQGLIWKDWIDLOHGKHKDGWRWKHQYHU\TXLFNO\LQSLORWVWHUPVWKLVPHDQW
DERXWKDOIDVHFRQGSXQFKWZREOXHNQREV:KHQWKHVSLQGRZQFDPHKHWKHQKDG
WREHVXUHWRUHOHDVHWKHDXWRPDWLFDFWXDWRUE\SXOOLQJGRZQRQWZR\HOORZ
WDEVEHLQJFHUWDLQWKDWKHVLWXSVWUDLJKWZLWKKDQGVEHWZHHQNQHHVWR
DYRLG
DQGVRRQIRUWKUHHKRXUV(YHU\RQHVHHPHGWRDVVXPHWKDWVLQFHKHZDV
WKLVIDPRXVPDWKHPDWLFLDQKHFRXOGRIFRXUVHNHHSDQHQWLUHPHQXRI
LQVWUXFWLRQVVWUDLJKWWLPHGWRIUDFWLRQVRIVHFRQGV
$IWHUWKHILUVWWHQPLQXWHVKHVDZQRSRLQWLQGHVWUR\LQJWKHLU
LOOXVLRQVDQGVLPSO\QRGGHGDQGVTXLQWHGWRVKRZWKDWKHZDVFDUHIXOO\
NHHSLQJWUDFNDQGDEVROXWHO\HQWKUDOOHG0HDQZKLOHKHVROYHGGLIIHUHQWLDO
HTXDWLRQVLQKLVKHDGIRUSUDFWLFH
,PVXUH\RXZLOOEHDOOULJKW%XWD)\UQL[VDLGIXOVRPHO\WRWKHPLQ
WKHGHSDUWXUHORXQJH
+DULKDGWRDGPLWWKLVZRPDQKDGSURYHQEHWWHUWKDQKHKDGKRSHG6KH
KDGFOHDUHGWKHZD\DQGVWDOOHGWKH,PSHULDORIILFHV*UH\0HQ3UREDEO\VKH
VKUHZGO\H[SHFWHGDSD\RIIIURPKLPDV)LUVW0LQLVWHU9HU\ZHOORQHVOLIH
ZDVZRUWKDNLFNEDFN
,KRSH,FDQKDQGOHDZRUPVKLS+DULVDLG
$QG,'RUVDGGHG
2XUWUDLQLQJLVWKHYHU\EHVW)\UQL[VDLG7KH1HZ5HQDLVVDQFH
HQFRXUDJHVLQGLYLGXDOH[FHOOHQFH
<HV,PTXLWHLPSUHVVHG'RUVVDLG3HUKDSV\RXFDQH[SODLQWRPH

WKHGHWDLOVRI\RXU&UHDWLYLW\&UHDWLRQSURJUDP",YHKHDUGVRPXFKDERXW
LW
+DULJDYHKHUDVOLJKWVPLOHRIWKDQNVIRUGLVWUDFWLQJ)\UQL[+H
LQVWLQFWLYHO\GLVOLNHGWKHEUDQGRIUDPSDQWVHOIDVVXUDQFHFRPPRQRQ6DUN,W
ZDVKHDGHGIRUDFUDFNXSRIWKDWKHZDVVXUH+HDFKHGWRJHWEDFNWRKLV
IXOOSV\FKRKLVWRULFDOUHVRXUFHVWRVLPXODWHWKLV6DUNFDVH+LVHDUOLHUZRUN
QHHGHGUHILQHPHQW+HKDGVHFUHWO\JDWKHUHGIUHVKGDWDKHUHDQG\HDUQHGWR
DSSO\LW
,GRKRSH\RXUHQRWZRUULHGDERXWWKHZLOGZRUP$FDGHPLFLDQ")\UQL[
VSRNHWRKLPDJDLQEURZIXUURZHG
,WVDWLJKWILWKHVDLG
7KH\KDGWRIO\LQDVOHQGHUF\OLQGHU'RUVFRSLORWLQJ6SOLWWLQJWKH
MREKDGSURYHGWKHRQO\ZD\WRJHWWKHPXSWRDEDUHO\FRPSHWHQWOHYHO
,WKLQNLWVPDUYHORXVKRZFRXUDJHRXV\RXWZRDUH
:HKDYHOLWWOHFKRLFH'RUVVDLG7KLVZDVDUWIXOXQGHUVWDWHPHQW
$QRWKHUGD\DQGWKHVHFWRUJHQHUDOVRIILFHUVZRXOGKDYH+DULDQG'RUVXQGHU
DUUHVW
5LGLQJLQDOLWWOHSHQFLOVKLS6XFKSULPLWLYHPHDQV
8KWLPHWRJR+DULVDLGEHKLQGDIL[HGVPLOH
6KHZDVZHDULQJWKLQDJDLQ
,DJUHHZLWKWKH(PSHURU$Q\WHFKQRORJ\GLVWLQJXLVKDEOHIURPPDJLFLV
LQVXIILFLHQWO\DGYDQFHG
6RWKH(PSHURUVJKRVWZULWWHQUHPDUNKDGDOUHDG\VSUHDGKHUH0LQRU
VD\LQJVPRYHGIDVWZLWK,PSHULDOPXVFOHEHKLQGLW
6WLOO+DULIHOWKLVVWRPDFKIOXWWHUZLWKGUHDG<RXYHJRWDSRLQW

+HKDGEUXVKHGRIIWKHUHPDUN
)RXUKRXUVODWHUFORVLQJDWKLJKYHORFLW\ZLWKWKHELJZRUPKROH
FRPSOH[KHVDZKHUVLGHRILW
+HVSRNHRQVXLWFRPPWR'RUV,QRQHRIP\FODVVHV1RQOLQHDU
3KLORVRSK\,EHOLHYHWKHSURIHVVRUVDLGVRPHWKLQJ,OOQHYHUIRUJHW,GHDV
DERXWH[LVWHQFHSDOHEHVLGHWKHIDFWRIH[LVWHQFH4XLWH WUXH
%HDULQJRKVL[QLQHILYHVKHVDLGULJRURXVO\1RVPDOOWDON
1RWKLQJVVPDOORXWKHUHH[FHSWWKDWZLOGZRUPPRXWK
7KHZLOGZRUPZDVDIL]]LQJSRLQWRIYLEUDQWDJLWDWLRQ,WRUELWHGWKH
PDLQZRUPPRXWKDGLVWDQWEULJKWVSHFN
,PSHULDOVKLSVSDWUROOHGWKHPDLQPRXWKLJQRULQJWKLVZLOGZRUP7KH\
KDGEHHQSDLGRIIORQJDJRDQGH[SHFWHGDVWHDG\WUDLQRIVOLPVKLSVWRVOLS
WKURXJKWKH,PSHULDOJXDUG
+DULKDGSDVVHGWKURXJKZRUPJDWHVEHIRUHDOZD\VLQELJFUXLVHUVSO\LQJ
URXWHVWKURXJKZRUPKROHVWHQVRIPHWHUVDFURVV(YHU\KROHRIWKDWVL]HZDV
WKHKXERIDFRPSOH[ZKLFKEX]]HGZLWKFDUHIXOO\RUFKHVWUDWHGWUDIILF+H
FRXOGVHHWKHVWDJLQJ\DUGVDQGLQMHFWLRQFRUULGRUVRIWKHPDLQURXWHJOHDPLQJ
IDUDZD\
7KHLUZLOGZRUPDUHQHJDGHVSLQRIIFRXOGYDQLVKDWDQ\PRPHQW,WV
TXDQWXPIURWKDGYHUWLVHGLWVPRUWDOLW\$QGPD\EHRXUV+DULWKRXJKW
9HFWRUQXOOVXPFRPLQJXSKHFDOOHG
&RQYHUJHQWDV\PSWRWHVFKHFN'RUVDQVZHUHG
-XVWOLNHWKHGULOOVWKH\KDGJRQHWKURXJK
%XWFRPLQJDWWKHPZDVDVSKHUHIL]]LQJRUDQJHDQGSXUSOHDWLWVULP$
QHRQOLWPRXWK7LJKWGDUNDWWKHYHU\FHQWHU
+DULIHOWDVXGGHQGHVLUHWRVZHUYHQRWGLYHLQWRWKDWLPSRVVLEO\
QDUURZJXOOHW
'RUVFDOOHGRXWQXPEHUV&RPSXWHUVDQJOHGWKHPLQ+H DGMXVWHGZLWKD
QXGJHKHUHDQGDWZLVWWKHUH
,WGLGQRWKHOSWKDWKHNQHZVRPHRIWKHXQGHUO\LQJSK\VLFV:RUPKROHV
ZHUHKHOGRSHQZLWKOD\HUVRIQHJDWLYHHQHUJ\VNLQVRIDQWLSUHVVXUHPDGHLQ

WKHILUVWFRQYXOVLRQRIWKHXQLYHUVH7KHQHJDWLYHHQHUJ\LQWKHVWUXWVZDV
HTXLYDOHQWWRWKHPDVVQHHGHGWRPDNHDEODFNKROHRIWKHVDPHUDGLXV
6RWKH\ZHUHSOXQJLQJWRZDUGDUHJLRQRIVSDFHRIXQLPDJLQDEOHGHQVLW\
%XWWKHGDQJHUOXUNHGRQO\DWWKHULPZKHUHVWUHVVHVFRXOGWHDUWKHPLQWR
DWRPV
$EXOOVH\HKLWZDVSHUIHFWO\VDIH%XWDQHUURU
7KUXVWHUVSXOVHG7KHZLOGZRUPZDVQRZDEODFNVSKHUHULPPHGLQTXDQWXP
ILUH
*URZLQJ
+DULIHOWVXGGHQO\WKHKHOSOHVVFRQVWULFWLRQRIWKHSHQFLOVKLS%DUHO\
WZRPHWHUVDFURVVLWVLQVXODWLRQZDVWKLQVDIHW\EXIIHUVPLQLPDO%HKLQG
KLP'RUVNHSWPXUPXULQJGDWDDQGKHFKHFNHGEXWSDUWRIKLPZDVVFUHDPLQJ
DWWKHFUXVKLQJVHQVHRIFRQILQHPHQWRIKHOSOHVVQHVV
+HIHOWDJDLQWKHJXWIHDUWKDWKDGVWUXFNKLPLQWKHVWUHHWVRI
6DUNRQLD1RWFODXVWURSKRELD EXWVRPHWKLQJGDUNHUDVZDPS\IHDURI
FRQIXVLRQDULRWRIGRXEW,WVHL]HGKLPVTXHH]HGKLVWKURDW
9HFWRUVVXPPLQJWRZLWKLQ]HURVHYHQWKUHH'RUVFDOOHG
+HUYRLFHZDVFDOPVWHDG\DPDUYHORXVEDOP+HFOXQJWRLWVVHUHQH
FHUWDLQWLHVDQGIRXJKWGRZQKLVRZQSDQLF
6TXHDOVRIODVWVHFRQGFRUUHFWLRQVHFKRHGLQKLVFUDPSHGFKDPEHU$
TXLFNNLFNRIDFFHOHUDWLRQ
/LJKWQLQJFXUOLQJVQDNHOLNHEOXHDQGJROGDWWKHP
WXPEOLQJ2XWWKHRWKHUHQGLQDZRUPFRPSOH[ILIWHHQWKRXVDQGOLJKW
\HDUVDZD\
7KDWROGSURIHVVRUGDPQULJKWKHZDVKHVDLG
'RUVVLJKHGKHURQO\VLJQRIVWUHVV,GHDVDERXWH[LVWHQFH
SDOHEHVLGHWKHIDFWRIH[LVWHQFH<HVP\ORYH/LYLQJLVELJJHUWKDQDQ\
WDONDERXWLW


$\HOORZJUHHQVXQJUHHWHGWKHP$QGVRRQHQRXJKDQ,PSHULDOSLFNHW
FUDIW
7KH\GXFNHGDQGUDQ$TXLFNVZHUYHDQGWKH\DQJOHGLQWRWKHWUDIILF
WUDLQKHDGHGIRUDODUJHZRUPKROHPRXWK7KHFRPPHUFLDOFKDUJHFRPSXWHUV
DFFHSWHGKLV,PSHULDORYHUULGHZLWKRXWDPXUPXU+DULKDGOHDUQHGZHOO'RUV
FRUUHFWHGKLPLIKHJRWPL[HGXS
7KHLUVHFRQGK\SHUVSDFHMXPSWRRNDPHUHWKUHHPLQXWHV7KH\SRSSHGRXW
IDUIURPDGLPUHGGZDUI
%\WKHIRXUWKMXPSWKH\NQHZWKHGULOO+DYLQJWKHFRGHVWDWXVRI
&OHRQVFRXUWEDQLVKHGREMHFWLRQV
%XWEHLQJRQWKHUXQPHDQWWKDWWKH\KDGWRWDNHZKDWHYHUZRUPKROH
PRXWKVWKH\FRXOGJHW/DPXUNVSHRSOHFRXOGQRWEHWRRIDUEHKLQG
$ZRUPKROHFRXOGWDNHWUDIILFRQO\RQHZD\DWDWLPH+LJKYHORFLW\
VKLSVSORZHGGRZQWKHZRUPKROHWKURDWVZKLFKFRXOGYDU\IURPDILQJHUV
OHQJWKWRDVWDUVGLDPHWHU
+DULKDGNQRZQWKHQXPEHUVRIFRXUVH7KHUHZHUHDIHZELOOLRQ
ZRUPKROHVLQWKH*DODFWLFGLVN7KHDYHUDJH,PSHULDO=RQHZDVDERXWILIW\
OLJKW\HDUVLQUDGLXV$MXPSFRXOGEULQJ\RXRXWPDQ\\HDUVIURPDIDUIOXQJ
ZRUOG
7KLVLQIOXHQFHGSV\FKRKLVWRU\6RPHYHUGDQWSODQHWVZHUHJUHHQ
IRUWUHVVHVDJDLQVWDQLVRODWLRQTXLWHSURIRXQG)RUWKHPWKH(PSLUHZDVD
UHPRWHGUHDPWKHVRXUFHRI H[RWLFSURGXFWVDQGRGGLGHDV+\SHUVKLSVIOLWWHG
WKURXJKZRUPKROHVLQPHUHVHFRQGVWKHQH[KDXVWHGWKHPVHOYHVKDXOLQJWKHLU
FDUJRHVDFURVVHPSW\YRLGV\HDUVDQGGHFDGHVLQWKHODERU
7KHZRUPZHEKDGPDQ\RSHQLQJVQHDULQKDELWDEOHZRUOGVEXWDOVRPDQ\
QHDUP\VWHULRXVO\XVHOHVVVRODUV\VWHPV7KH(PSLUHKDGSRVLWLRQHGWKHVPDOOHU

ZRUPPRXWKVWKRVHPDVVLQJSHUKDSVDVPXFKDVDPRXQWDLQUDQJHQHDUULFK
SODQHWV%XWVRPHZRUPPRXWKVRIJDUJDQWXDQPDVVRUELWHGQHDUVRODUV\VWHPVDV
EDUUHQDQGSRLQWOHVVDVDQ\VXUYH\HG
:DVWKLVUDQGRPRUDQHWZRUNOHIWE\VRPHHDUOLHUFLYLOL]DWLRQ"
&HUWDLQO\WKHZRUPKROHVWKHPVHOYHVZHUHOHIWRYHUVIURPWKH*UHDW(PHUJHQFH
ZKHQVSDFHDQGWLPHDOLNHEHJDQ7KH\OLQNHGGLVWDQWUHDOPVZKLFKKDGRQFH
EHHQQHDUE\ZKHQWKHJDOD[\ZDV\RXQJDQGVPDOOHU
7KH\GHYHORSHGDUK\WKP3RSWKRXJKDZRUPPRXWKPDNHFRPPFRQWDFWJHW
LQOLQHIRUWKHQH[WGHSDUWXUH,PSHULDOZDWFKGRJVZRXOGQRWSXOODQ\RQHRI
KLJK7UDQWRULDQFODVVIURPDTXHXH6RWKHLUPRVWGDQJHURXVPRPHQWVFDPHDV
WKH\QHJRWLDWHGFOHDUDQFH
$WWKLV'RUVEHFDPHDGHSW6KHVHQWWKH:RUP0DVWHUFRPSXWHUVEOXUWVRI
GDWDDQGZKLVNWKH\ZHUHHGJLQJLQWRRUELWDOYHFWRUVERXQGIRUWKHLUQH[W
MXPS
'RPDLQVWKDWHQFRPSDVVHGWKRXVDQGVRIOLJKW\HDUVVSDQQLQJWKHZLGWKRI
DVSLUDODUPZHUHHVVHQWLDOO\QHWZRUNVRIRYHUODSSLQJZRUPVDOORUJDQL]HG
IRUWUDQVIHUDQGVKLSSLQJ
0DWWHUFRXOGIORZRQO\RQHZD\DWDWLPHLQDZRUPKROH7KHIHZ
H[SHULPHQWVZLWKVLPXOWDQHRXVWZRZD\WUDQVSRUWHQGHGLQGLVDVWHU1RPDWWHU
KRZLQJHQLRXVHQJLQHHUVWULHGWRVWHHUVKLSVDURXQGHDFKRWKHUWKHVKHHU
IOH[LELOLW\RIZRUPWXQQHOVVSHOOHGGRRP(DFKZRUPPRXWKNHSWWKHRWKHU
LQIRUPHGRIZKDWLWKDGMXVWHDWHQ7KLVLQIRUPDWLRQIORZHGDVDZDYHQRW
LQSK\VLFDOPDWWHUEXWLQWKHWHQVLRQRIWKHZRUPKROHLWVHOIDULSSOHLQWKH
VWUHVVWHQVRUDVSK\VLFLVWVWHUPHGLW
)O\LQJVKLSVWKURXJKERWKPRXWKVVHQWVWUHVVZDYHVSURSDJDWLQJWRZDUG
HDFKRWKHUDWVSHHGVZKLFKGHSHQGHGRQWKHORFDWLRQDQGYHORFLW\RIWKH
VKLSV7KHVWUHVVFRQVWULFWHG WKHWKURDWVRWKDWZKHQWKHZDYHVPHWD
FOHQFKLQJVTXHH]HGGRZQWKHZDOOV
7KHHVVHQWLDOSRLQWZDVWKDWWKHWZRZDYHVPRYHGGLIIHUHQWO\DIWHUWKH\
PHW7KH\LQWHUDFWHGRQHVORZLQJDQGWKHRWKHUVSHHGLQJXSLQDKLJKO\
QRQOLQHDUIDVKLRQ
2QHZDYHFRXOGJURZWKHRWKHUVKULQN7KHELJRQHPDGHWKHWKURDW
FOHQFKGRZQLQWRVDXVDJHOLQNV:KHQDVDXVDJHQHFNPHWDVKLSWKHFUDIW
PLJKWVOLSWKURXJKEXWFDOFXODWLQJWKDWZDVDSURGLJLRXVMRE,IWKHVDXVDJH
QHFNKDSSHQHGWRPHHWWKHWZRVKLSVZKHQWKH\SDVVHGFUXQFK
7KLVZDVQRPHUHWHFKQLFDOSUREOHP,WZDVDUHDOOLPLWDWLRQLPSRVHGE\
WKHODZVRITXDQWXPJUDYLW\)URPWKDWILUPIDFWDURVHDQHODERUDWHV\VWHPRI
VDIHJXDUGVWD[HVUHJXODWRUVDQGKDQJHUVRQDOOWKHDSSDUDWXVRID
EXUHDXFUDF\ZKLFKGRHVLQGHHGKDYHDSXUSRVHDQGPDNHVWKHPRVWRILW
+DULOHDUQHGWRGLVSHOKLVDSSUHKHQVLRQE\ZDWFKLQJWKHYLHZV6XQVDQG
SODQHWVRIJUHDWOXPLQRXVEHDXW\IORDWHGLQWKHEODFNQHVV
%HKLQGWKHUHVSOHQGHQFHKHNQHZOXUNHGQHFHVVLW\
)URPWKHZRUPKROHFDOFXOXVDURVHEOXQWHFRQRPLFIDFWV%HWZHHQZRUOGV$
DQG%WKHUHPLJKWEHKDOIDGR]HQZRUPKROHMXPSVWKH1HVWZDVQRWVLPSO\
FRQQHFWHGDPHUHDVWURSK\VLFDOVXEZD\V\VWHP(DFKZRUPPRXWKLPSRVHGDGGHG
IHHVDQGFKDUJHVRQHDFKVKLSPHQW
&RQWURORIDQHQWLUHWUDGHURXWH\LHOGHGWKHPD[LPXPSURILW7KH
VWUXJJOHIRUFRQWUROZDVXQHQGLQJRIWHQYLROHQW)URPWKHYLHZSRLQWRI
HFRQRPLFVSROLWLFVDQGKLVWRULFDOPRPHQWXPZKLFKPHDQWDVRUWRILPSRVHG
LQHUWLDRQHYHQWVDORFDOHPSLUHZKLFKFRQWUROOHGDZKROHFRQVWHOODWLRQRI
QRGHVVKRXOGEHVROLGHQGXULQJ
1RWVR7LPHDQGDJDLQUHJLRQDOVDWUDSLHVZHQWWRHVXS
0DQ\SHULVKHGEHFDXVHWKH\ZHUHHODERUDWHO\FRQWUROOHG,WVHHPHG
QDWXUDOWRVTXHH]HHYHU\ZRUPSDVVDJHIRUWKHPD[LPXPIHHE\FRRUGLQDWLQJ
HYHU\ZRUPPRXWKWRRSWLPL]HWUDIILF%XWWKDWGHJUHHRIFRQWUROPDGHSHRSOH
UHVWLYH
7KHV\VWHPFRXOGQRWGHOLYHUWKHEHVWEHQHILWV2YHUFRQWUROIDLOHG



2QWKHLUVHYHQWHHQWKMXPSWKH\PHWDFDVHLQSRLQW

9HFWRUDVLGHIRUVHDUFKFDPHDQDXWRPDWLFFRPPDQGIURPDQ,PSHULDO
YHVVHO
7KH\KDGQRFKRLFH7KHELJEHOOLHG,PSHULDOVFRRSHGWKHPXSZLWKLQ
VHFRQGVDIWHUWKHLUHPHUJHQFHIURPDPHGLXPVL]HGZRUPKROHPRXWK
7UDQVJUHVVLRQWD[DFRPSXWHUL]HGV\VWHPDQQRXQFHG3ODQHW2EHMHHRQ
GHPDQGVWKDWVSHFLDOFDUULHUVSD\$EOXURIFRPSXWHUODQJXDJHIROORZHG
/HWVSD\LW+DULVDLG
,ZRQGHULILWZLOOSURYLGHDWUDFHUIRU/DPXUN"'RUVVDLGRYHUWKH
LQWHUQDOFRPP
:KDWLVRXURSWLRQ"
,VKDOOXVHP\RZQSHUVRQDO LQGLFHV
)RUDZRUPKROHWUDQVLW"7KDWZLOOEDQNUXSW\RX
,WLVVDIHU
+DULIXPHGZKLOHWKH\IORDWHGLQPDJQHWLFJUDSSOHUVEHQHDWKWKH,PSHULDO
SLFNHWVKLS7KHZRUPKROHRUELWHGDKHDYLO\LQGXVWULDOL]HGZRUOG*UD\FLWLHV
VSUDZOHGRYHUWKHFRQWLQHQWVDQGZHEEHGDFURVVWKHVHDVLQKXJHKH[DJRQDOV
7KH(PSLUHKDGWZRSODQHWDU\PRGHVUXUDODQGXUEDQ+HOLFRQZDVDIDUP
ZRUOGVRFLDOO\VWDEOHEHFDXVHRILWVWLPHKRQRUHGOLQHDJHVDQGVWDEOH
HFRQRPLFPRGHV6XFKZRUOGVDQGWKHVLPLODU)HPRUXVWLFVODVWHG
2EHMHHRQRQWKHRWKHUKDQGVHHPHGWRFDWHUWRWKHRWKHUEDVLFKXPDQ
LPSXOVHFOXPSLQJVHHNLQJWKHUXERIRQHVIHOORZV7UDQWRUZDVWKHSLQQDFOH
RIFLW\FOXVWHULQJ
+DULKDGDOZD\VWKRXJKWLWRGGWKDWKXPDQLW\EURNHVRHDVLO\LQWRWZR
PRGHV1RZWKRXJKKLVSDQH[SHULHQFHFODULILHGWKHVHSURFOLYLWLHV
3DQORYHRIWKHRSHQDQGQDWXUDOKDGLWVSDUDOOHOLQWKHUXVWLFZRUOGV
7KLVLQFOXGHGDKRVWRISRVVLEOHVRFLHWLHVHVSHFLDOO\WKH)HPRSDVWRUDODW
WUDFWRULQSV\FKRKLVWRU\VSDFH
,WVRSSRVLWHSROHFODXVWURSKRELFWKRXJKUHDVVXULQJVRFLHWLHVHPHUJHG
IURPWKHVDPHSV\FKRG\QDPLFURRWVDVWKHSDQVWULEDOJDWKHULQJ3DQV
REVHVVLYHJURRPLQJH[SUHVVHGLWVHOILQKXPDQVDVJRVVLSDQGSDUW\LQJ3DQ
KLHUDUFKLHVJDYHWKHEDVLFVKDSHWRWKHYDULRXV)HXGDOLVWDWWUDFWRUJURXSV
0DFKR6RFLDOLVW3DWHUQDO(YHQWKHRGGWKDQWRFUDFLHVRIVRPHRIWKH)DOOHQ
:RUOGVILWWKHSDWWHUQ7KH\KDG3KDUDRKILJXUHVSURPLVLQJDGPLVVLRQWRDQ
DIWHUOLIHDQGGHWDLOHGUDQNLQJVGHVFHQGLQJIURPKLVH[DOWHGSHDNLQWKHULJLG
VRFLDOS\UDPLG
7KHVHFDWHJRULHVKHQRZIHOWLQKLVJXW7KDWZDVWKHHOHPHQWKHKDG
EHHQPLVVLQJ1RZKHFRXOGLQFOXGHQXDQFHVDQGVKDGLQJVLQWKH
SV\FKRKLVWRULFDOHTXDWLRQVZKLFKUHIOHFWHGHDUQHGH[SHULHQFH7KDWZRXOGEH
PXFKEHWWHUWKDQWKHGU\DEVWUDFWLRQVZKLFKKDGOHGKLPVRIDU
7KH\UHSDLGRII'RUVVHQWRYHUWKHFRPP6XFKFRUUXSWLRQ
8PPP\HVVKRFNLQJ:DVKHJHWWLQJF\QLFDO"+HZDQWHGWRWXUQDQG
VSHDNZLWKKHUEXWWKHLUSHQFLOVKLSDOORZHGVFDQWVRFLDOL]LQJ
/HWVJR
:KHUHWR"
7R+HUHDOL]HGWKDWKHKDGQRLGHD
:HKDYHSUREDEO\HOXGHGSXUVXLW'RUVYRLFHFDPHWKURXJKVWLIIDQG
WLJKW+HKDGOHDUQHGWRUHFRJQL]HVLJQVRIKHURZQWHQVLRQ
,GOLNHWRVHH+HOLFRQDJDLQ
7KH\ZRXOGH[SHFWWKDW
+HIHOWDVWDERIGLVDSSRLQWPHQW8QWLOQRZKHKDGQRWUHDOL]HGKRZ
FORVHWRKLVKHDUWKLVHDUO\\HDUVVWLOOZHUH+DG7UDQWRUGXOOHGKLPWRKLV
RZQHPRWLRQV":KHUHWKHQ"
,WRRNDGYDQWDJHRIWKLVSDXVHWRDOHUWDIULHQGE\ZRUPOLQNVKH

VDLG:HPD\EH DEOHWRUHWXUQWR7UDQWRUWKRXJKWKURXJKDGHYLRXVURXWH
7UDQWRU/DPXUN
0D\QRWH[SHFWVXFKDXGDFLW\
:KLFKUHFRPPHQGVWKHLGHD


,WZDVGL]]\LQJOHDSLQJDERXWWKHHQWLUHJDOD[\WUDSSHGLQDFDVNHW
VL]HGFRQWDLQHU
7KH\MXPSHGDQGGRGJHGDQGMXPSHGDJDLQ$WVHYHUDOPRUHZRUPKROH\DUGV
'RUVPDGHGHDOV3D\RIIVDFWXDOO\6KHGHIWO\GHDOWFRPELQDWLRQVRIKLV
F\JQHWVWKH,PSHULDO3DVVDJHLQGLFHVDQGKHUSULYDWHQXPEHUV
&RVWO\+DULIUHWWHG+RZZLOO,HYHUSD\
7KHGHDGGRQRWZRUU\DERXWGHEWVVKHVDLG
<RXKDYHVXFKDQHQJDJLQJZD\RISXWWLQJPDWWHUV
6XEWOHW\LVZDVWHGKHUH
7KH\HPHUJHGIURPRQHMXPSLQFORVHRUELWDERXWDVXEOLPHO\WRUWXUHG
VWDU6WUHDPHUVOXVKZLWKOLJKWUDFHGE\WKHP
+RZORQJFDQWKLVZRUPODVWKHUH"KHZRQGHUHG
,WZLOOEHUHVFXHG,PVXUH,PDJLQHWKHFKDRVLQWKHV\VWHPLIDZRUP
PRXWKEHJLQVWRJXVKKRWSODVPD
+DULNQHZWKHZRUPKROHV\VWHPWKRXJKGLVFRYHUHGLQSUH(PSLUHDJHVKDG
QRWDOZD\VEHHQXVHG$IWHUWKHXQGHUO\LQJSK\VLFVRIWKHZRUPKROHFDOFXOXV
FDPHWREHNQRZQVKLSVFRXOGSO\WKH*DOD[\E\LQYRNLQJZRUPKROHVWDWHV
DURXQGWKHPVHOYHV7KLVDIIRUGHGH[SORUDWLRQRIUHDFKHVGHYRLGRIZRUPKROHV
EXWDWKLJKHQHUJ\FRVWVDQGVRPHGDQJHU)XUWKHUVXFKVKLSORFDOK\SHUGULYHV
ZHUHIDUVORZHUWKDQVLPSO\VOLSSLQJWKURXJKDZRUP
$QGLIWKH(PSLUHHURGHG"/RVWWKHZRUPQHWZRUN":RXOGWKHVOLPDWWDFN
ILJKWHUVDQGVQDNHOLNHZHDSRQVIOHHWVJLYHZD\WROXPEHULQJK\SHUVKLS
GUHDGQRXJKWV"
7KHQH[WGHVWLQDWLRQVZDPDPLGDQHHULHEODFNYRLGIDURXWLQWKHKDOR
RIUHGGZDUIVDERYHWKH*DODFWLFSODQH7KHGLVNVWUHWFKHGLQOXPLQRXV
VSOHQGRU+DULUHPHPEHUHGKROGLQJDFRLQDQGWKLQNLQJRIKRZDPHUHVSHFNRQ
LWVWRRGIRUDYDVWYROXPHOLNHDODUJH=RQH+HUHVXFKKXPDQWHUPV VHHPHG
SRLQWOHVV7KH*DOD[\ZDVRQHVHUHQHV\PSKRQ\RIPDVVDQGWLPHJUDQGHUWKDQ
DQ\KXPDQSHUVSHFWLYHRUSDQVKDSHGYLVLRQ
5DYLVKLQJ'RUVVDLG
6HH$QGURPHGD",WORRNVQHDUO\DVFORVH
7KHWZLQVSLUDOKXQJDERYHWKHP,WVODQHVRIFORWWHGGXVWIUDPHGVWDUV
D]XUHDQGFULPVRQDQGHPHUDOG+HUHFRPHVRXUFRQQHFWLRQ+DULZDUQHG
7KLVZRUPKROHLQWHUVHFWLRQDIIRUGHGILYHEUDQFKHV7KUHHEODFNVSKHUHV
RUELWHGFORVHO\WRJHWKHUEODULQJEULJKWE\WKHLUTXDQWXPULPUDGLDWLRQ7ZR
FXELFZRUPKROHVFLUFOHGIDUWKHURXW+DULNQHZWKDWRQHRIWKHUDUHYDULDQW
IRUPVZDVFXELFDOEXWKHKDGQHYHUVHHQDQ\7ZRWRJHWKHUVXJJHVWHGWKDWWKH\
ZHUHERUQDWWKHHGJHRIJDOD[LHVEXWVXFKPDWWHUVZHUHEH\RQGKLVVKDN\
XQGHUVWDQGLQJ
:HJRWKHUH'RUVSRLQWHGDODVHUEHDPDWRQHRIWKHFXEHVJXLGLQJ
WKHSHQFLOVKLS
7KH\WKUXVWWRZDUGWKHVPDOOHUFXEHJLQJHUO\LQFKLQJXS7KHZRUP\DUG
KHUHZDVDXWRPDWLFDQGQRRQHKDLOHGWKHP
7LJKWILW+DULVDLGQHUYRXVO\
)LYHILQJHUVWRVSDUH
+HWKRXJKWVKHZDVMRNLQJWKHQUHDOL]HGWKDWVKHZDVXQGHUHVWLPDWLQJ
WKHILW$WWKLVOHVVXVHGZRUPKROH LQWHUVHFWLRQVORZVSHHGVZHUHHVVHQWLDO
*RRGSK\VLFVXQIRUWXQDWHHFRQRPLFV7KHVORZGRZQFXWWKHQHWIOX[RIPDVV
PDNLQJWKHPEDFNZDWHUFURVVURDGV
+HJD]HGDW$QGURPHGDWRWDNHKLVPLQGRIIWKHSLORWLQJ1DUURZ

ZRUPKROHVGLGQRWHPHUJHLQRWKHUJDOD[LHVIRUDUFDQHUHDVRQVRITXDQWXP
JUDYLW\([WUHPHO\QDUURZRQHVPLJKWEXWLIWKHWKURDWKDGRWKHUPDVVFRPLQJ
WKURXJKWKHVTXHH]HZDYHFRXOGNLOO)HZKDGHYHUYHQWXUHGGRZQWKHPLQ
VHDUFKRIH[WUDJDODFWLFHPHUJHQWSRLQWV
([FHSWWKDWLVIRU6WHIIQRV5LGHDOHJHQGDU\ULVN\H[SHGLWLRQZKLFK
KDGSRSSHGRXWLQWKHJDOD[\FDWDORJHGDV06WHIIQRKDGJRWWHQGDWDRQWKH
VSHFWDFXODUMHWHPHUJLQJIURPWKHEODFNKROHDW0VFHQWHUPDMHVWLFVWUDQGV
WZLVWLQJLQWRKHOLFDODUDEHVTXHV7KHORQHULGHUKDGQRWWDUULHGUHWXUQLQJ
RQO\VHFRQGVEHIRUHWKHZRUPVQDSSHGVKXWLQDVSUD\RIUDGLDQWSDUWLFOHV
1RRQHNQHZZK\6RPHWKLQJLQZRUPKROHSK\VLFVGLVFRXUDJHGH[WUDJDODFWLF
DGYHQWXUHV
7KHFXELFZRUPWRRNWKHPTXLFNO\WRVHYHUDOZRUP\DUGVLQFORVHRUELW
DERXWSODQHWV2QH+DULUHFRJQL]HGDVDUDUHW\SHZLWKDQROGEXWUXLQHG
ELRVSKHUH/LNH3DQXFRSLDLWVXSSRUWHGDGYDQFHGOLIHIRUPV2QPRVW
LQKDELWDEOHZRUOGVHDUO\H[SORUHUVKDGIRXQGDOJDHPDWVWKDWQHYHUGHYHORSHG
IXUWKHU
:K\QRLQWHUHVWLQJDOLHQV WKHQ"+DULPXVHGZKLOH'RUVGHDOWZLWKWKH
ORFDOZRUP\DUG*UH\0HQ
2FFDVLRQDOO\'RUVUHPLQGHGKLPWKDWVKHZDVDIWHUDOODQKLVWRULDQ
7KHVKLIWIURPRQHFHOOHGWRPDQ\FHOOHGFUHDWXUHVWRRNELOOLRQVRI\HDUV
WKHRU\VD\V:HMXVWFDPHIURPDIDVW WRXJKHUELRVSKHUHWKDWVDOO
:HFDPHIURPDSODQHWZLWKDWOHDVWRQHELJPRRQWRR
:K\"VKHDVNHG
:HYHJRWUHSHDWLQJSDWWHUQVRIWZHQW\HLJKWGD\VEXLOWLQ)HPDOH
PHQVWUXDWLRQIRULQVWDQFHXQOLNHSDQVLQFLGHQWDOO\:HUHGHVLJQHGE\
ELRORJ\:HPDGHLWWKHVHELRVSKHUHVGLGQW7KHUHDUHSOHQW\RIZD\VWRNLOO
DZRUOG*ODFLHUVDGYDQFLQJZKHQDQRUELWDOWHUV$VWHURLGVVODPPLQJLQEDP
EDPEDP+HVODSSHGWKHVLGHRIWKHSHQFLOVKLSORXGO\&KHPLVWU\RIWKH
DWPRVSKHUHJRHVZURQJ,WUXQVDZD\LQWRDKRWKRXVHSODQHWRUDIUR]HQRXW
ZRUOG
,VHH
+XPDQVDUHWRXJKHUDQGVPDUWHUWKDQDQ\ERG\:HUHKHUHWKH\
DUHQW
:KRVD\V"
6WDQGDUGNQRZOHGJHHYHUVLQFHWKHVRFLRWKHRULVW.DPSIEHO
,PVXUH\RXUHULJKWVKHVDLGTXLFNO\
6RPHWKLQJLQKHUYRLFHPDGHKLPKHVLWDWHKHORYHGDJRRGDUJXPHQWEXW
E\WKHQWKH\ZHUHVOLSSLQJWKURXJKWKHH[FUXFLDWLQJWLJKWILWRIWKHFXEH7KH
HGJHVJORZHGOLNHDOHPRQ\(XFOLGHDQFRQVWUXFWLRQDQGWKHQWKH\SRSSHGLQWR
DQRUELWDERYH DEODFNKROH
+HZDWFKHGWKHHQRUPRXVHQHUJ\KDUYHVWLQJGLVNVJORZZLWKIHUPHQWLQJ
VFDUOHWVDQGYLUXOHQWSXUSOHV7KH(PSLUHKDGVWDWLRQHGJUHDWFRQGXLWVRI
PDJQHWLFILHOGDURXQGWKHKROH7KHVHVXFNHGDQGGUHZLQLQWHUVWHOODUGXVW
FORXGV7KHGDUNF\FORQHVQDUURZHGWRZDUGWKHEULOOLDQWDFFUHWLRQGLVNDURXQG
WKHKROH5DGLDWLRQIURPWKHIULFWLRQDQGLQIDOOLQJZDVLQWXUQFDSWXUHGE\
YDVWJULGVDQGUHIOHFWRUV7KHFURSRIUDZSKRWRQHQHUJ\LWVHOIEHFDPHWUDSSHG
DQGIOXVKHGLQWRWKHZDLWLQJPDZVRIZRUPKROHV7KHVHFDUULHGWKHIOX[WR
GLVWDQWZRUOGVLQQHHGRIFXWWLQJODQFHVRIOLJKWIRUWKHEXVLQHVVRISODQHW
VKDSLQJZRUOGUDNLQJPRRQFDUYLQJ
%XWHYHQDPLGWKLVVSHFWDFOHKHFRXOGQRWIRUJHWWKHWRQHLQ'RUV
YRLFH6KHNQHZVRPHWKLQJKHGLGQRW+HZRQGHUHG
1DWXUHVRPHSKLORVRSKHUVKHOGZDVLWVHOIRQO\EHIRUHKXPDQLW\WRXFKHG
LW:HGLGQRWWKHQEHORQJLQWKHYHU\LGHDRI1DWXUHDQGVRZHFRXOG
H[SHULHQFHLWRQO\DVLWZDVGLVDSSHDULQJ2XUSUHVHQFHDORQHZDVHQRXJKWR
PDNH1DWXUHLQWRVRPHWKLQJHOVHDFRPSURPLVHGLPSHUVRQDWLRQ
7KHVHLGHDVKDGXQH[SHFWHGLPSOLFDWLRQV2QHZRUOGQDPHG$UFDGLDKDG
EHHQGHOLEHUDWHO\OHIWZLWKDPHUHFDUHWDNHUSRSXODWLRQRIKXPDQVSDUWO\

EHFDXVHLWZDVGLIILFXOWWRUHDFK7KHQHDUHVWZRUPKROHPRXWKZDVKDOID
OLJKW\HDUDZD\$QHDUO\HPSHURUVRREVFXUHKLVRUKHUYHU\QDPHZDVORVW
KDGGHFUHHGWKDWWKHIRUHVWVDQGSODLQVRIWKHEHQLJQSODQHWEHOHIW
RULJLQDO%XWWHQWKRXVDQG\HDUVODWHUDUHFHQWUHSRUWDQQRXQFHGVRPH
IRUHVWVZHUHQRWUHJHQHUDWLQJDQGSODLQVZHUHJLYLQJZD\WRVFUXEE\EUXVK
6WXG\VKRZHGWKDWWKHFDUHWDNHUVKDGWDNHQWRRPXFKFDUH7KH\KDGSXW
RXWZLOGILUHVVXSSUHVVHGVSHFLHVWUDQVIHU7KH\KDGHYHQKHOGWKHZHDWKHU
QHDUO\FRQVWDQWWKURXJKDGMXVWPHQWVLQKRZPXFKVXQOLJKWWKHLFHSROHV
UHIOHFWHGEDFNLQWRVSDFH
7KH\KDGWULHGWRKROGRQWRDVWDWLF$UFDGLDVRWKHIRUHVWSULPHYDOZDV
UHYHDOHGDVLQSDUWDKXPDQSURGXFW7KH\KDGQRWXQGHUVWRRGF\FOHV+H
ZRQGHUHGKRZVXFKDQLQVLJKWPLJKWIROGLQWRSV\FKRKLVWRU\
)RUJHWWKHRU\IRUWKHPRPHQWKHUHPLQGHGKLPVHOI,WZDVDIDFWWKDW
WKH*DOD[\KDGVHHPHGHPSW\RIKLJKDOLHQOLIHIRUPVLQWKHHDUO\SUH(PSLUH
WLPHV:LWKVRPDQ\IHUWLOHSODQHWVGLGKHWUXO\EHOLHYHWKDWRQO\KXPDQLW\
KDGHPHUJHGLQWRLQWHOOLJHQFH"
6RPHKRZVXUYH\LQJWKHLQFRPSUHKHQVLEOHZHDOWKRIWKLVOXVKLPPHQVH
GLVNRIVWDUVVRPHKRZ+DULFRXOGQRWEHOLHYHLW
%XWZKDWZDVWKHDOWHUQDWLYH"


7KH(PSLUHVWZHQW\ILYHPLOOLRQZRUOGVVXSSRUWHGDQDYHUDJHRIRQO\
IRXUELOOLRQSHRSOHSHUSODQHW7UDQWRUKDGIRUW\ELOOLRQ$PHUHWKRXVDQG
OLJKW\HDUVIURP*DODFWLF&HQWHULWKDGVHYHQWHHQZRUPKROHPRXWKVRUELWLQJ
ZLWKLQLWVVRODUV\VWHPWKHKLJKHVWGHQVLW\LQWKH*DOD[\7KH7UDQWRULDQ
V\VWHPKDGRULJLQDOO\KHOGRQO\WZREXWDJDUJDQWXDQWHFKQRORJ\RIEUXWH
LQWHUVWHOODUIOLJKWKDGWXJJHGWKHUHVWWKHUHWRPDNHWKHQH[XV
(DFKRIWKHVHYHQWHHQVSDZQHGRFFDVLRQDOZLOGZRUPV2QHRIWKHVHZDV
'RUVWDUJHW
%XWWRUHDFKLWWKH\KDGWRYHQWXUHZKHUHIHZGLG
7KH*DODFWLF&HQWHULVGDQJHURXV'RUVVDLGDVWKH\FRDVWHGWRZDUGWKH
GHFLVLYHZRUPKROHPRXWK7KH\FXUYHGDERYHDEDUUHQPLQLQJSODQHW%XW
QHFHVVDU\
7UDQWRUZRUULHVPHPRUH7KHMXPSFXWKLPRII
DQGWKHVSHFWDFOHVLOHQFHGKLP
7KHILODPHQWVZHUHVRODUJHWKHH\HFRXOGQRWWDNHWKHPLQ7KH\
VWUHWFKHGIRUHDQGDIWVKRWWKURXJKZLWKLPPHQVHOXPLQRXVFRUULGRUVDQGGXVN\
ODQHV7KHVHDUFKHV\DZQHGRYHUWHQVRIOLJKW\HDUV,PPHQVHFXUYHVGHVFHQGHG
WRZDUGWKHZKLWHKRW7UXH&HQWHU7KHUHPDWWHUIURWKHGDQGIXPHGDQGEXUVW
LQWRGD]]OLQJIRXQWDLQV
7KHEODFNKROHKHVDLGVLPSO\
7KHVPDOOEODFNKROHWKH\KDGVHHQRQO\DQKRXUEHIRUHKDGWUDSSHGDIHZ
VWHOODUPDVVHV$W7UXH&HQWHUDPLOOLRQVXQVKDGGLHGWRIHHGJUDYLW\V
JXOOHW
7KHRUGHUO\DUUD\VRIUDGLDQFHZHUHWKLQRQO\DOLJKW\HDUDFURVV<HW
WKH\VXVWDLQHGWKHPVHOYHVDORQJKXQGUHGVRIOLJKW\HDUVDVWKH\FKXUQHGZLWK
FKDQJH+DULVZLWFKHGWKHSRODUL]HGZDOOVWRVHHLQGLIIHUHQWIUHTXHQF\
UDQJHV7KRXJKKRWDQGURLOLQJLQWKHYLVLEOHKXPDQVSHFWUXPWKHUDGLR
UHYHDOHGKLGGHQLQWULFDF\7KUHDGVODFHGDPRQJFRQYROXWHGVSLQGOHV+HKDGD
SRZHUIXOLPSUHVVLRQRIOD\HUVRIODE\ULQWKLQHRUGHUGHVFHQGLQJEH\RQGKLV
YLHZEH\RQGVLPSOHXQGHUVWDQGLQJ
3DUWLFOHIOX[LVKLJK'RUVVDLGWHQVHO\$QGULVLQJ
:KHUHVRXUMXQFWLRQ"
,PKDYLQJWURXEOHYHFWRUIL[LQJDK7KHUH
+DUGDFFHOHUDWLRQUDPPHGKLPEDFNLQWRKLVIORZFRXFK'RUVWRRNWKHP
GLYLQJGRZQLQWRDPRWWOHGS\UDPLGVKDSHGZRUPKROH

7KLVZDVDQHYHQUDUHUJHRPHWU\+DULKDGWLPHWRPDUYHODWKRZ
DFFLGHQWVRIWKHXQLYHUVDOELUWKSDQJKDGVKDSHGWKHVHVHUHQHJHRPHWULHVOLNH
H[KLELWVLQVRPHJRGV(XFOLGHDQPXVHXPRIWKHPLQG
$QGWKHQWKH\SOXQJHGWKURXJKHUDVLQJWKHVWXQQLQJYLHZV
7KH\SRSSHGRXWDERYHWKHJUD\EURZQPRWWOHGIDFHRI7UDQWRU$JOLQWLQJ
GLVNRIVDWHOOLWHVIDFWRULHVDQGKDELWDWVIDQQHGRXWLQWKHHTXDWRULDOSODQH
7KHZLOGZRUPWKH\KDGXVHGIL]]HGDQGJORZHGEHKLQGWKHP'RUVWRRN
WKHPVZLIWO\WRZDUGWKHUDPVKDFNOHWHPSRUDU\ZRUP\DUG+HVDLGQRWKLQJEXW
IHOWKHUWHQVHFDOFXODWLRQV7KH\QXGJHGLQWRDVRFNHWVHDOVVLJKHGKLVHDUV
SRSSHGSDLQIXOO\
7KHQWKH\ZHUHRXWDUPVDQGOHJVZRRGHQIURPWKHFUDPSHGSHQFLOVKLS
+DULFRDVWHGLQ]HURJWRZDUGWKHIOH[ORFN'RUVJOLGHGDKHDGRIKLP6KH
PRWLRQHGKLPIRUVLOHQFHDVSUHVVXUHVSXOVHGLQWKHORFN6KHSHHOHGKHU
VNLQVXLWGRZQH[SRVLQJKHUEUHDVWV
$ILQJHUVWRXFKRSHQHGDVHDPEHORZKHUOHIWEUHDVW6KHSOXFNHGD
F\OLQGHURXW$ZHDSRQ"6KHUHVHDOHGDQGKDGKHUVNLQVXLWEDFNLQSODFHEHIRUH
WKHVWDJLQJGLDSKUDJPEHJDQWRRSHQ
%H\RQGWKHRSHQLQJLULV+DULVDZ,PSHULDOXQLIRUPV
+HFURXFKHGDJDLQVWWKHORFNZDOOUHDG\WRODXQFKKLPVHOIEDFNZDUGWR
DYRLGFDSWXUHEXWWKHVLWXDWLRQORRNHGKRSHOHVV
7KH,PSHULDOVORRNHGJULPGHWHUPLQHG7KH\FODVSHGSLVWROV'RUV
FRDVWHGEHWZHHQ+DULDQGWKHVTXDG6KHWRVVHGWKHF\OLQGHUDWWKHP
DSUHVVXUHZDYHNQRFNHGKLPEDFNDJDLQVWWKHZDOO+LVHDUVFORJJHG
7KHVTXDGZDVDQH[SDQGLQJFORXGRIGHEULV
:KDW"
6KDSHGLPSORVLRQ'RUVFDOOHG0RYH
7KHLQMXUHGPHQKDGEHHQVODPPHGLQWRHDFKRWKHU+RZDQ\WKLQJFRXOG
VKDSHDSUHVVXUHZDYHVRFRPSDFWO\KHFRXOGQRWLPDJLQH,QDQ\FDVHKHKDG
QRWLPH7KH\VKRWSDVWWKHWDQJOHGFORXGRIPHQ:HDSRQVGULIWHGXVHOHVVO\
$ILJXUHHUXSWHGIURPWKHIDU GLDSKUDJP$PDQLQDEURZQZRUNVKHDWK
PLGGOHVL]HGXQDUPHG+DULVKRXWHGDZDUQLQJ'RUVVKRZHGQRUHDFWLRQ
7KHPDQIOLFNHGKLVZULVWDQGDVQRXWDSSHDUHGIURPKLVVOHHYH'RUV
VWLOOFRDVWHGWRZDUGKLP
+DULVQDJJHGDKDQGKROGDQGYHHUHGWRKLV ULJKW
6WD\VWLOOWKHPDQ\HOOHG
+DULIUR]HGDQJOLQJE\RQHKDQG7KHPDQILUHGDQGDVLOYHU\EROW
IULHGSDVW+DUL
+HWXUQHGDQGVDZWKDWRQHRIWKH,PSHULDOVKDGUHFRYHUHGKLVZHDSRQ
7KHVLOYHUOLQHVFUDWFKHGILUHDFURVVWKH,PSHULDOVDUP +HVFUHDPHG+LV
ZHDSRQWXPEOHGDZD\
/HWVJR,KDYHWKHUHVWRIWKHZD\VHFXUHGWKHPDQLQWKHZRUN
VKHDWKFDOOHG
'RUVIROORZHGKLPZLWKRXWDZRUG+DULSXVKHGRIIDQGFDXJKWXSWRWKHP
DVWKHGLDSKUDJPLULVHGIRUWKHP
<RXUHWXUQWR7UDQWRUDWWKHFUXFLDOPRPHQWWKHPDQVDLG
<RXZKR
7KHPDQVPLOHG,KDYHFKDQJHGP\VHOI<RXGRQRWUHFRJQL]H\RXUROG
IULHQG5'DQHHO"
5(1'(=9286

5'DQHHOJD]HGDW'RUVZLWKRXWH[SUHVVLRQOHWWLQJKLVERG\JRVODFN
'RUVVDLG:HPXVWGHIHQGKLPDJDLQVW/DPXUN<RXFRXOGUHDSSHDUFRPH
RXWLQIDYRURIKLP$VIRUPHU)LUVW0LQLVWHU\RXUSXEOLFHQGRUVHPHQWDQG
VXSSRUW
,FDQQRWUHDSSHDUDV(WR'HPHU]HOH[LPSRUWDQWSHUVRQ7KDWZRXOG
FRPSURPLVHP\RWKHUWDVNV

%XW+DULKDVWRKDYH
$VZHOO\RXPLVWDNHP\SRZHUDV'HPHU]HO,DPQRZKLVWRU\/DPXUN
ZLOOFDUHQRWKLQJDERXWPHIRU,KDYHQROHJLRQVWRFRPPDQG
'RUVIXPHGVLOHQWO\%XW\RXPXVW
,VKDOOPRYHPRUHRIXVLQWR/DPXUNVLQQHUFLUFOH
,WVWRRODWHWRLQILOWUDWH
'DQHHODFWLYDWHGKLVH[SUHVVLYHSURJUDPVDQGVPLOHG,SODQWHGVHYHUDO
RIRXUNLQGGHFDGHVDJR7KH\VKDOODOOEHLQSRVLWLRQVRRQ
<RXUHXVLQJXV"
,PXVW7KRXJK\RXULPSOLFDWLRQLVFRUUHFWZHDUHIHZ
,QHHGKHOSSURWHFWLQJKLPWRR
4XLWHULJKW+HSURGXFHGDWKLFNGLVNWKLVWLPHIURPDFRPSDUWPHQW
EHQHDWKKLVDUPSLW7KLVZLOOLGHQWLI\WKH/DPXUNDJHQWVIRU\RX
6KHORRNHGGRXEWIXO+RZ"7KLVORRNVOLNHDFKHPVQRRSHU
,KDYHDJHQWVRIP\RZQ7KH\FDQLQWXUQODEHO/DPXUNVDJHQWV7KLV
GHYLFHZLOOSLFNXSWKHLUWDJV2WKHUHQFRGHGPHVVDJHVZLOOULGHRQWKH
PDUNLQJVLJQDO
$QG/DPXUNVVSHFLDOLVWVZRQWSLFNXSWKHWDJV"
7KLVGHYLFHXVHVPHWKRGVORVWIRUVL[PLOOHQQLD
,QVWDOOLWLQ\RXU
ULJKW DUPDWVWDWLRQFXWVL[,QWHUIDFHZLWKDSHUWXUHVWZRDQGILYH
+RZZLOO,
6SHFVDQGH[SHUWLVHZLOOIORZWR\RXUORQJWHUPPHPRU\XSRQ
FRQQHFWLRQ
6KHLQVWDOOHGWKHGHYLFHDVKHZDWFKHG+LVJUDYHSUHVHQFHPDGHVLOHQFH
QDWXUDO2OLYDZQHYHUZDVWHGDPRYHPHQWRUPDGHLGOHFRQYHUVDWLRQ)LQDOO\
LQWULFDFLHVGRQHVKHVLJKHGDQGVDLG+HVLQWHUHVWHGLQWKRVHVLPXODWLRQV
WKHRQHVZKLFKHVFDSHG
+HLVIROORZLQJWKHEHVWOLQHRIDWWDFNIRUSV\FKRKLVWRU\
7KHUHVWKLVWLNWRNSUREOHPWRR'R\RXXQGHUVWDQG
7KHVRFLDOWDERRVDJDLQVWVLPXODWLRQVLQHYLWDEO\EUHDNGRZQGXULQJ
FXOWXUDOUHVXUJHQFHV'DQHHOVDLG
6RWLNWRNV"
7KH\DUHLQKHUHQWO\GHVWDELOL]LQJLIWKH\EHFRPHWRRGHYHORSHG$IWHU
DOOZHFDQQRWFRQGRQHDQHZJHQHUDWLRQRIURERWVRUWKHUHGLVFRYHU\RIWKH
SRVLWURQLFSURFHVV
7KHUHDUHVLJQVLQWKHKLVWRULFDOUHFRUGWKDWWKLVKDVKDSSHQHG
EHIRUH
<RXDUHDQLQVLJKWIXOVFKRODU
7KHUHZHUHRQO\DIHZWUDFHVEXW,VXVSHFW
6XVSHFWQRIXUWKHU<RXDUHFRUUHFW,FRXOGQRWH[SXQJHHYHU\VFUDSRI
GDWD
<RXGLVJXLVHGVXFKHYHQWV"
$QGPXFKHOVH
:K\"$VDQKLVWRULDQ
,KDGWR+XPDQLW\LVEHVWVHUYHGE\,PSHULDOVWDELOLW\7LNWRNVVLPV
WKHVHDFFRPSDQ\PRYHPHQWVVXFKDVWKLV1HZ5HQDLVVDQFHIHHGLQJWKHILUH
:KDWVWREHGRQH"
,GRQRWNQRZ0DWWHUVDUHVOLSSLQJEH\RQGP\DELOLW\WRSUHGLFW
6KHIURZQHG+RZGR\RXSUHGLFW"
,QWKHILUVWPLOOHQQLDRIWKH(PSLUHRXUNLQGGHYHORSHGWKHVLPSOH
WKHRU\,KDYHPHQWLRQHGEHIRUH8VHIXOEXWFUXGH,WOHGPHWRH[SHFWWKH
UHHPHUJHQFHRIWKHVHVLPXODWLRQVDVDVLGHHIIHFWRIWKH6DUNLDQ5HQDLVVDQFH
DQGLWVWXUPRLO
'RHV+DULXQGHUVWDQGWKLV"
+DULVSV\FKRKLVWRU\LVYDVWO\VXSHULRUWRRXUPRGHOV+HODFNVFHUWDLQ
YLWDOKLVWRULFDOGDWDKRZHYHU:KHQLWLVHYHQWXDOO\LQFOXGHGKHZLOOEH
DEOHWRDFFXUDWHO\DQWLFLSDWHWKH(PSLUHVGHYROXWLRQ

<RXGRQRWPHDQHYROXWLRQ"
4XLWH7KDWLVDPDMRU UHDVRQZK\ZHGHYRWHVXFKUHVRXUFHVWRKHOSLQJ
+DUL
+HLVFUXFLDO
2IFRXUVH:K\GR\RXWKLQN,DVVLJQHG\RXWRKLP"
'RHVLWPDWWHUWKDW,YHIDOOHQLQORYHZLWKKLP"
1R%XWLWKHOSV
+HOSVPH"2UKLP"
'DQHHOVPLOHGWKLQO\%RWK ,VKRXOGKRSH%XWPRVWO\LWKHOSVPH
B

3$57

7+((7(51$/
(48$7,216

B
7+(*(1(5$/7+(25<2)36<&+2+O6725<
3$57D0DWKHPDWLFDO$VSHFWVDVWKHFULVLVGHHSHQVWKHGHHSV\VWHPLF
OHDUQLQJORRSVIDOWHU7KHV\VWHPGULIWVRXWRIWXQH6XFKGULIWV
SDUWLFXODUO\LIGLIIXVLYHFDOOIRUIXQGDPHQWDOV\VWHPLFUHVWUXFWXULQJ7KLV
LVWHUPHGWKHPDFURGHFLVLRQSKDVHLQZKLFKWKHORRSVPXVWILQGIUHVK
FRQILJXULQJVLQWKH1GLPHQVLRQDOODQGVFDSH
$OOYLVXDOL]DWLRQVFDQEHXQGHUVWRRGLQWKHUPRG\QDPLFWHUPV7KH
VWDWLVWLFDOPHFKDQLFVLQYROYHGDUHQRWWKRVHRISDUWLFOHVDQGFROOLVLRQVDV
LQDJDVEXWLQWKHODQJXDJHRIVRFLDOPDFURJURXSVDFWLQJWKURXJK
FROOLVLRQVZLWKRWKHUVXFKPDFURJURXSV6XFKLPSDFWVSURGXFHPXFKKXPDQ
GHEULV
(1&<&/23(',$*$/$&7,&$


+DUL6HOGRQVWRRGDORQHLQWKHOLIWWKLQNLQJ
7KHGRRUVOLGRSHQ$ZRPDQDVNHGLIWKLVHOHYDWRUZDVJRLQJXSRUGRZQ
'LVWUDFWHGKHDQVZHUHG<HV+HUVXUSULVHGORRNWROGKLPWKDWVRPHKRZKLV
UHSO\ZDVRIIWDUJHW2QO\DIWHUWKHGRRUFORVHGRQKHUSX]]OHGVWDUHGLGKH
VHHWKDWVKHPHDQWZKLFKZD\QRWLI
+HZDVLQWKHKDELWRIPDNLQJSUHFLVHGLVWLQFWLRQVWKHZRUOGZDVQRW
+HZDONHGLQWRKLVRIILFHVWLOOEDUHO\DZDUHRIKLVVXUURXQGLQJVDQG
&OHRQV'EORVVRPHGLQWKHDLUEHIRUHKHFRXOGVLWGRZQ7KH(PSHURUDZDLWHG
QRILOWHUSURJUDPV
,ZDVVRKDSS\WRKHDU\RXKDGUHWXUQHGIURPKROLGD\&OHRQEHDPHG
3OHDVHGVLUH:KDWGLGKHZDQW"
+DULGHFLGHGQRWWRWHOOKLPDOOWKDWKDGWUDQVSLUHG 'DQHHOKDG
VWUHVVHGVHFUHF\2QO\WKLVPRUQLQJDIWHUD]LJ]DJURXWHGRZQIURPWKH
ZRUP\DUGVKDG+DULOHWKLVSUHVHQFHEHNQRZQHYHQWRWKH,PSHULDO6SHFLDOV
,IHDU\RXDUULYHDWDGLIILFXOWWLPH&OHRQVFRZOHG/DPXUNLV
PRYLQJIRUDYRWHLQWKH+LJK&RXQFLORQWKH)LUVW0LQLVWHUVKLS
+RZPDQ\YRWHVFDQKHPXVWHU"
(QRXJKWKDW,FDQQRWLJQRUHWKH&RXQFLO,ZLOOEHIRUFHGWRDSSRLQW
KLPGHVSLWHP\RZQOLNHV
,DPVRUU\IRUWKDWVLUH,QIDFWKLVKHDUWOHDSHG
,KDYHPDQHXYHUHGDJDLQVWKLPEXW$QHODERUDWHVLJK&OHRQFKHZHG
DWKLVDPSOHORZHUOLS+DGWKHPDQJDLQHGZHLJKWDJDLQ"2UZHUH+DULV
SHUFHSWLRQVDOWHUHGE\KLVWLPHRIVKRUWHQHGGLHWRQ3DQXFRSLD"0RVW

7UDQWRULDQVORRNHGSXGJ\WRKLPQRZ7KHQWRRLVWKLVLUULWDWLQJPDWWHURI
6DUNDQGLWVFRQIRXQGHG1HZ5HQDLVVDQFH7KHPXGGOHJURZV&RXOGWKLVVSUHDG
WRRWKHUZRUOGVLQWKHLU=RQH":RXOGWKRVHWKURZLQZLWKWKHP"<RXKDYH
VWXGLHGWKLV"
,QGHWDLO
8VLQJSV\FKRKLVWRU\"
+DULJDYHZD\WRKLVJXWLQVWLQFW8QUHVWZLOOJURZWKHUH
<RXUHVXUH"
+HZDVQWEXW,VXJJHVW\RXPRYHDJDLQVWLW
/DPXUNIDYRUV6DUN+HVD\VLWZLOOEULQJQHZSURVSHULW\
+HZDQWVWRULGHWKLVGLVFRUGLQWRRIILFH
2YHUWRSSRVLWLRQIURPPHDWWKLVGHOLFDWHWLPHZRXOGEHXQSROLWLF
(YHQWKRXJKKHPLJKWEHEHKLQGWKHDWWHPSWVRQP\OLIH"
$ODVWKHUHLVQRSURRIRIWKDW$VHYHUVHYHUDOIDFWLRQVZRXOG
EHQHILWZHUH\RXWR&OHRQFRXJKHGXQFRPIRUWDEO\
:LWKGUDZLQYROXQWDULO\"
&OHRQVPRXWKZRUNHGXQHDVLO\$Q(PSHURULVIDWKHUWRDSHUSHWXDOO\
XQUXO\IDPLO\
,IHYHQWKH(PSHURUZHUHWLSWRHLQJDURXQG/DPXUNPDWWHUVZHUHLQGHHG
EDG&RXOGQW\RXSRVLWLRQVTXDGURQVIRUTXLFNXVHVKRXOGWKHRSSRUWXQLW\
DULVH"
&OHDQQRGGHG,VKDOO%XWLIWKH+LJK&RXQFLOYRWHVIRU/DPXUN,
VKDOOEHSRZHUOHVVWRPRYHDJDLQVWVRSURPLQHQWDQGZHOOH[FLWLQJDZRUOGDV
6DUN
,EHOLHYHVWULIHZLOOVSUHDGWKURXJKRXW6DUNVHQWLUH=RQH
7UXO\":KDWZRXOG\RXDGYLVHPHWRGRDJDLQVW/DPXUN"
,KDYHQRSROLWLFDOVNLOOVVLUH<RXNQHZWKDW
1RQVHQVH<RXKDYHSV\FKRKLVWRU\
+DULZDVVWLOOXQFRPIRUWDEOHRZQLQJXSWRWKHWKHRU\HYHQZLWK&OHRQ
,ILWZHUHHYHUWREHXVHIXOZRUGRISV\FKRKLVWRU\FRXOGQRWEHZLGHVSUHDG
RU HOVHHYHU\RQHZRXOGXVHLW2UWU\WR
&OHRQZHQWRQ$QG\RXUVROXWLRQWRWKHWHUURULVWSUREOHPLWLV
ZRUNLQJZHOO:HMXVWH[HFXWHG0RURQ2QH+XQGUHG
+DULVKXGGHUHGWKLQNLQJRIWKHOLYHVREOLWHUDWHGE\DPHUHSDVVLQJLGHD
RIKLV$DVPDOOLVVXHVXUHO\VLUH
7KHQWXUQ\RXUFDOFXODWLRQVWRWKH'DKOLWH6HFWRUPDWWHU+DUL7KH\
DUHUHVWLYH(YHU\RQHLVWKHVHGD\V
$QGWKH=RQHVRI'DKOLWHSHUVXDVLRQWKURXJKRXWWKH*DOD[\"
7KH\EDFNWKHORFDO'DKOLWHVLQWKH&RXQFLOV,WVDERXWWKLV
UHSUHVHQWDWLRQTXHVWLRQ7KHSODQZHIROORZRQ7UDQWRUZLOOEHPLUURUHG
WKURXJKRXWWKH*DOD[\,QGHHGLQWKHYRWHVRIZKROH=RQHV
:HOOLIPRVWSHRSOHWKLQN
$KP\GHDU+DUL\RXVWLOOKDYHDPDWKLVWVP\RSLD+LVWRU\LV
GHWHUPLQHGQRWE\ZKDWSHRSOHWKLQNEXWE\ZKDWWKH\IHHO
6WDUWOHGIRUWKLVUHPDUNVWUXFNKLPDVWUXH+DULFRXOGRQO\VD\,
VHHVLUH
:H\RXDQG,+DULPXVWGHFLGHWKLVLVVXH
,OOZRUNRQWKHGHFLVLRQVLUH
+RZKHKDGFRPHWRKDWHWKHYHU\ZRUG'HFLGHKDGWKHVDPHURRWDV
VXLFLGHDQGKRPLFLGH'HFLVLRQVIHOWOLNHOLWWOHNLOOLQJV6RPHERG\ORVW
+DULQRZNQHZZK\KHZDVQRWFXWRXWIRUWKHVHPDWWHUV,IKLVVNLQZDV
WRRWKLQKHZRXOGKDYHWRRUHDG\HPSDWK\ZLWKRWKHUVZLWKWKHLUDUJXPHQWV
DQGVHQWLPHQWV7KHQKHZRXOGQRWPDNHGHFLVLRQVZKLFKKHNQHZFRXOGRQO\EH
DSSUR[LPDWHO\ULJKWDQGZRXOGFDXVHVRPHSDLQ
2QWKHRWKHUKDQGKHKDGWRVWHHOKLPVHOIDJDLQVWWKHSHUVRQDOQHHGWR
EHOLNHG,QDQDWXUDOSROLWLFLDQWKDWZRXOGOHDGWRDSRVWXUHWKDWVDLGKH
FDUHGDERXWRWKHUVZKHQLQIDFWKHFDUHGZKDWWKH\WKRXJKWRIKLPEHFDXVH

EHLQJOLNHGZDVZKDWFRXQWHGIDUGRZQLQWKHVKDGRZ\SV\FKH,WDOVRFDPHLQ
KDQG\IRUVWD\LQJLQRIILFH
&OHRQEURXJKWXSPRUHLVVXHV+DULGRGJHGDQGVWDOOHGDVPXFKDVKH
FRXOG:KHQ&OHRQDEUXSWO\HQGHGWKHWDONKHNQHZKHKDGQRWFRPHRYHUZHOO
+HKDGQRFKDQFHWRUHIOHFWRQWKLVIRU<XJRFDPHLQ
,PVRJODG\RXUHEDFN<XJRJULQQHG7KH'DKOLVVXHUHDOO\QHHGV
\RXUDWWHQWLRQ
(QRXJK+DULFRXOGQRWYHQWKLVLUHDWWKH(PSHURUEXW<XJRZRXOGGR
QLFHO\1RSROLWLFDOWDON6KRZPH\RXUUHVHDUFKSURJUHVV
8KDOOULJKW
<XJRORRNHGFKDVWHQHGDQG+DULDWRQFHUHJUHWWHGEHLQJVRDEUXSW<XJR
KXUULHGWRVHWXSKLVODWHVWGDWDGLVSOD\V+DULEOLQNHGIRUDPRPHQWKHKDG
VHHQLQ<XJRVKDVWHDQRGGVLPLODULW\WRSDQJHVWXUHV
+DULOLVWHQHGWKLQNLQJDORQJWZRWUDFNVDWRQFH7KLVWRRVHHPHG
HDVLHUVLQFH3DQXFRSLD
3ODJXHVZHUHEXLOGLQJDFURVVWKHHQWLUH(PSLUH:K\"
:LWKUDSLGWUDQVSRUWEHWZHHQZRUOGVGLVHDVHVWKULYHG+XPDQVZHUHWKH
PDMRUSHWULGLVK$QFLHQWPDODGLHVDQGYLUXOHQWQHZSODJXHVDSSHDUHGDURXQG
GLVWDQWVWDUV7KLVLQKLELWHG=RQDOLQWHJUDWLRQDQRWKHUKLGGHQIDFWRU
'LVHDVHVILOOHGDQHFRORJLFDOQLFKHDQGIRUVRPHKXPDQLW\ ZDVDVQXJ
QRRN$QWLELRWLFVNQRFNHGGRZQLQIHFWLRQVZKLFKWKHQPXWDWHGDQGUHWXUQHG
PRUHYLUXOHQWVWLOO+XPDQLW\DQGPLFUREHVPDGHDQLQWULJXLQJV\VWHPIRUERWK
VLGHVIRXJKWEDFNTXLFNO\
&XUHVSURSDJDWHGTXLFNO\WKURXJKWKHZRUPKROHV\VWHPEXWVRGLGGLVHDVH
FDUULHUV7KHHQWLUHSUREOHP<XJRKDGIRXQGFRXOGEHGHVFULEHGE\DPHWKRG
NQRZQDVPDUJLQDOVWDELOLW\LQZKLFKGLVHDVHDQGSHRSOHVWUXFNDQXQHDV\
HYHUVKLIWLQJEDODQFH0DMRUSODJXHVZHUHUDUHEXWPLQRURQHVEHFDPHFRPPRQ
$IIOLFWLRQVURVHDQGLQYHQWLYHVFLHQFHGDPSHGWKHPZLWKLQDJHQHUDWLRQ7KLV
RVFLOODWLRQVHQWIXUWKHUULSSOHVVSUHDGLQJDPRQJRWKHUKXPDQLQVWLWXWLRQV
UDGLDWLQJLQWRFRPPHUFHDQGFXOWXUH:LWKLQWULFDWHFRXSOLQJWHUPVLQWKH
HTXDWLRQVKHVDZSDWWHUQVHPHUJLQJZLWKRQHVDGFRQVHTXHQFH
7KHKXPDQOLIHVSDQLQWKHQDWXUDOFLYLOL]HGKXPDQFRQGLWLRQOLYLQJLQ
FLWLHVDQGWRZQVKDGDQHTXDOO\QDWXUDOOLPLW:KLOHVRPHIHZDWWDLQHG
\HDUVPRVWGLHGZHOOVKRUWRI7KHVWHDG\KDLORIIUHVKGLVHDVHLQVXUHG
LW ,QWKHHQGWKHUHZDVQRODVWLQJVKHOWHUIURPWKHVWRUPRIELRORJ\+XPDQV
OLYHGLQWURXEOHGEDODQFHZLWKPLFUREHVDQXQHQGLQJVWUXJJOHZLWKQRILQDO
YLFWRULHV
/LNHWKLVWLNWRNUHYROW<XJRILQLVKHG
+DULMHUNHGWRDWWHQWLRQ:KDW"
,WVOLNHDYLUXV'XQQRZKDWVVSUHDGLQJLWWKRXJK
$OORYHU7UDQWRU"
7KDWVWKHIRFXVVHHPVOLNH2WKHUV=RQHVDUHJHWWLQJWLNWRNWURXEOHV
WRR
7KH\UHIXVHWRKDUYHVWIRRG"
<XS6RPHRIWKHWLNWRNVPRVWO\WKHUHFHQWPRGHOVVDQGKLJKHU
WKH\VD\LWVLPPRUDOWRHDWRWKHUOLYLQJWKLQJV
*RRGJULHI
+DULUHPHPEHUHGEUHDNIDVW(YHQDIWHUWKHH[RWLFDRI3DQXFRSLDWKH
DXWRNLWFKHQVPHDJHURIIHULQJKDGEHHQDVKRFN7UDQWRULDQIRRGKDGDOZD\V
EHHQFRRNHGRUJURXQGEOHQGHGRUFRPSRXQGHG3URSHUO\IUXLWZDVSUHVHQWHGDV
DVDXFHRUSUHVHUYH7RKLVVXUSULVHEUHDNIDVWDSSHDUHGWRKDYHFRPHVWUDLJKW
IURPWKHGLUW+HKDGZRQGHUHGLILWKDGEHHQZDVKHGDQGKRZKHZRXOGNQRZ
IRUVXUH7UDQWRULDQVKDWHGWKHLUPHDOVWRUHPLQGWKHPRIWKHQDWXUDOZRUOG
7KH\UHUHIXVLQJWRZRUNWKH&DYHUQVHYHQ<XJRVDLG
%XWWKDWVHVVHQWLDO
1RERG\FDQIL[HP7KHUHVVRPHWLNWRNPHPHLQYDGLQJWKHP
/LNHWKHVHSODJXHV\RXUH DQDO\]LQJ

+DULKDGEHHQVKRFNHGDW7UDQWRUVHURVLRQLQMXVWDIHZPRQWKV+HDQG
'RUVKDGVOLSSHGLQWR6WUHHOLQJZLWK'DQHHOVKHOSDPLGPHVV\WUDVKVWUHZQ
FRUULGRUVZLWKSKRVSKRUVPDOIXQFWLRQLQJOLIWVGHDG1RZWKLV
<XJRVVWRPDFKVXGGHQO\UXPEOHG2KVRUU\3HRSOHDUHKDYLQJWRZRUN
WKH&DYHUQVIRUWKHILUVWWLPHLQFHQWXULHV7KH\KDYHQRKDQGVRQH[SHULHQFH
(YHU\ERG\EXWWKHJHQWU\VRQVOLPUDWLRQV
+DULKDGKHOSHG<XJRHVFDSHWKDWVZHOWHULQJZRUN\HDUVEHIRUH,QYDVW
YDXOWVZRRGDQGFRDUVHFHOOXORVHSDVVHGDXWRPDWLFDOO\IURPWKHVRODUFDYHUQV
WRYDWVRIZHDNDFLG3DVVLQJWKURXJKGHHSULYHUVRIDFLGK\GURO\]HGWKLVWR
JOXFRVH1RZSHRSOHQRWUXJJHGWLNWRNVKDGWRPL[QLWHUVXVSHQVLRQVDQG
JURXQGSKRVSKDWHURFNLQDFDUHIXOO\FDOFXODWHGVOXUU\:LWKSUHSDUHGRUJDQLFV
VWLUUHGLQDYDVWUDQJHRI\HDVWVDQGWKHLUGHULYDWLYHVHPHUJHG
7KH(PSHURUKDVWRGRVRPHWKLQ<XJRVDLG
2U,+DULVDLG%XWZKDW"
3HRSOHUHVD\LQZHKDYHWRVFUDSDOOWKHWLNWRNVQRWMXVWWKH)LYH
+XQGUHGVHULHVDQGGRHYHU\WKLQJRXUVHOYHV
:LWKRXWWKHPZHZRXOGEHUHGXFHGWRKDXOLQJEXONIRRGVDFURVVWKH
*DOD[\E\K\SHUVKLSDQGZRUPVDQDEVXUGLW\7UDQWRUZLOOIDOO
+H\ZHFDQGREHWWHUWKDQWLNWRNV
0\GHDU<XJRWKDWLVZKDW,FDOO(FKR1RPLFV<RXUHUHSHDWLQJ
FRQYHQWLRQDOZLVGRP2QHPXVWFRQVLGHUWKHODUJHUSLFWXUH7UDQWRULDQVDUHQW
WKHVDPHSHRSOHZKREXLOWWKLVZRUOG7KH\UHVRIWHU
:HUHDVWRXJKDQGVPDUWDVWKHPHQDQGZRPHQZKREXLOWWKH(PSLUH
7KH\GLGQWVWD\LQGRRUV
2OG'DKOLWHVD\LQ<XJRJULQQHG,I\RXGRQWOLNHWKHJUDQG
SLFWXUHMXVWDSSO\GRJORJLFWROLIH*HWSHWWHGHDWRIWHQEHORYDEOHDQG
ORYHGVOHHSDORWGUHDPRIDOHDVKIUHHZRUOG
'HVSLWHKLPVHOI+DULODXJKHG%XWKHNQHZKHKDGWRDFWDQGVRRQ


:HDUHWUDSSHGEHWZHHQWLQGHLWLHVDQGFDUERQDQJHOV9ROWDLUHUDVSHG
7KHVHFUHDWXUHV"-RDQDVNHGLQDWKLQDZHGYRLFH
7KLVDOLHQIRJTXLWHJRGOLNHLQDZD\0RUHGLVSDVVLRQDWHWKDQUHDO
FDUERQEDVHGKXPDQV<RXDQG,DUHOLNHQHLWKHUQRZ
7KH\IORDWHGDERYHZKDW9ROWDLUHWHUPHG6\V&LW\WKHV\VWHP
UHSUHVHQWDWLRQRI7UDQWRULWVF\EHUVHOI)RU-RDQVKXPDQUHIHUHQWVKHKDG
WUDQVIRUPHGWKHJULGVDQGOD\HUVLQWRP\ULDGFU\VWDOOLQHZDONZD\VOLQNLQJ
VDEHUVKDUSWRZHUV'HQVHFRQQHFWLRQVZHEEHGWKHDLU0RWHVFRQQHFWHGWRRWKHU
PRWHVLQLQWULFDWHFURVVERQGVDQGILOPHGWKHJURXQG7KLV\LHOGHGDFLW\VFDSH
OLNHDEUDLQ$YLVXDOSXQKHWKRXJKW
,KDWHWKLVSODFHVKHVDLG
<RXGSUHIHUD3XUJDWRU\VLPXODWLRQ"
,WLVVRFKLOOLQJ
7KHDOLHQPLQGVDERYHWKHPZHUHDPXUN\PLVWRIFRQQHFWLRQV7KH\VHHP
WREHVWXG\LQJXV9ROWDLUHVDLGZLWKGHFLGHGO\XQV\PSDWKHWLFH\HV
,VWDQGUHDG\VKRXOGWKH\DWWDFN6KHVZXQJDKXJHVZRUG
$QG,VKRXOGWKHLUZHDSRQVRIFKRLFHEHV\OORJLVPV
+HFRXOGQRZUHDFKDQ\OLEUDU\LQ7UDQWRUUHDGLWVFRQWHQWVLQOHVV
WLPHWKDQKHKDGRQFHWDNHQWRZULWHDYHUVH+HZRUNHGKLVPLQGRUZDVLW
PLQGVQRZ"DURXQGWKHFORWWHGFROGPLVW
2QFHVRPHWKHRULVWVKDGWKRXJKWWKDWWKHJOREDOQHWZRXOGJLYHELUWKWR
DK\SHUPLQGDOJRULWKPVVXPPLQJWRDGLJLWDO*DLD1RZVRPHWKLQJIDUJUHDWHU
WKLVVKLIWLQJJUD\IRJZUDSSHGDURXQGWKHSODQHW:LGHO\VHSDUDWHGPDFKLQHV
FRPSXWHGGLIIHUHQWVOLFHVRIVXEMHFWLYHPRPHQWMXPSV
7RWKHVHPLQGVWKHSUHVHQWZDVDJUHDVHGFRPSXWDWLRQDOVOLGH
RUFKHVWUDWHGE\KXQGUHGVRIVHSDUDWHSURFHVVRUV7KHUHZDVDSURIRXQG

GLIIHUHQFHKHIHOWQRWVDZEXWIHOWGHHSLQKLVDQDORJSHUVXDVLRQEHWZHHQ
WKHGLJLWDODQGWKHVPRRWKWKHFRQWLQXRXV
7KHIRJZDVDFORXGRIVXVSHQGHGPRPHQWVVOLFHGQXPEHUVZDLWLQJWR
KDSSHQLPSOLFLWLQWKHIXQGDPHQWDOFRPSXWDWLRQ
$QGZLWKLQLWDOOWKHVWUDQJHQHVV
+HFRXOGQRWFRPSUHKHQGWKHVHGLIIXVHVSLULWV7KH\ZHUHWKHUHPQDQWVRI
DOOWKHFRPSXWDWLRQDOEDVHGVRFLHWLHVWKURXJKRXWWKH*DOD[\ZKRKDGVRPHKRZ
EXWZK\"FRQGHQVHGKHUHRQ7UDQWRU
7KH\ZHUHWUXO\DOLHQPLQGV&RQYROXWHGE\]DQWLQH 9ROWDLUHNQHZWKH
RULJLQRIWKDWZRUGIURPDSODFHRIVSLUHVDQGEXOERXVPRVTXHVEXWDOOWKDW
ZDVGXVWZKLOHWKHXVHIXOZRUGUHPDLQHG 7KH\GLGQRWKDYHKXPDQSXUSRVHV
$QGWKH\XVHGWKHWLNWRNV
7KHWKUXVWRIWKHPHFKDQLFDOVDJHQGD9ROWDLUHVDZZDVULJKWVWKH
H[SDQVLRQRIOLEHUW\WRWKHGLJLWDOZLOGHUQHVV
(YHQ'LWWRVPLJKWIDOOXQGHUVXFKDUXOH:HUHQRWFRSLHVRIGLJLWDO
SHRSOHVWLOOSHRSOH"6RWKHDUJXPHQWZHQW,PPHQVHIUHHGRPWRFKDQJH\RXURZQ
FORFNVSHHGPRUSKLQWRDQ\WKLQJUHEXLOG\RXURZQPLQGIURPWRSWRERWWRP
FDPHDORQJZLWKWKHDGPLWWHGOLDELOLW\RIQRWEHLQJSK\VLFDOO\UHDO8QDEOHWR
OLWHUDOO\ZDONWKHVWUHHWVDOOGLJLWDOSUHVHQFHVZHUHOLNHJKRVWV2QO\ZLWK
GLJLWDOSURVWKHWLFVFRXOGWKH\UHDFKIHHEO\LQWRWKHFRQFUHWHXQLYHUVH
6RULJKWVIRUWKHPZHUHWLHGXSZLWKGHHSVHDWHGIHDUVLGHDVZKLFK
KDGSURYRNHGGUHDGPDQ\PLOOHQQLDDJR+HQRZUHFDOOHGVKDUSO\WKDWKHDQG
-RDQKDGGHEDWHGVXFKLVVXHVRYHU\HDUVDJR7RZKDWHQG"+HFRXOGQRW
UHWULHYHWKDW6RPHRQHQRVRPHWKLQJKHVXVSHFWHGKDGHUDVHGWKHPHPRU\
$QFLHQWLQGHHG KHJOHDQHGIURPP\ULDGOLEUDULHV ZHUHSHRSOHV
WHUURUVRIGLJLWDOLPPRUWDOVZKRDPDVVHGZHDOWKZKRJUHZOLNHIXQJXVZKR
UHDFKHGLQWRHYHU\DYHQXHRIQDWXUDOUHDOOLYHV3DUDVLWHVQRWKLQJOHVV
9ROWDLUHVDZDOOWKLVLQDIODVKDVKHDEVRUEHGGDWDDQGKLVWRU\IURPD
ELOOLRQVRXUFHVLQWHJUDWHGWKHVWUHDPVDQGSDVVHGWKHPRQWRKLVEHORYHG
-RDQ
7KDWZDVZK\KXPDQVKDGUHMHFWHGGLJLWDOOLIHIRUVRORQJEXWZDVWKDW
DOO"1RDODUJHUSUHVHQFHOXUNHGEH\RQGKLVYLVLRQ$QRWKHUDFWRURQWKLV
VKDGRZ\VWDJH%H\RQGKLVUHVROXWLRQDODV
+HVZHUYHGKLVZRUOGVSDQQLQJYLVLRQIURPWKDWVKDGRZ\HVVHQFH7WPHZDV
HVVHQWLDOQRZDQGKHKDGPXFKWRFRPSUHKHQG
7KHDOLHQIRJVZHUHQRGHVSDFNHWVGZHOOLQJLQORJLFDOGDWDVSDFHVRI
LPPHQVHGLPHQVLRQDOLW\7KHVHHQWLWLHVOLYHGLQSODFHVZKLFKIXQFWLRQHGOLNH
KLJKHUGLPHQVLRQVYDXOWVRIGDWD
7RWKHPSHRSOHZHUHHQWLWLHVZKLFKFRXOGEHUHVROYHGDORQJGDWDD[HV
SDWKHWLFDOO\XQDZDUHWKDWWKHLUVHOYHVVHHQWKLVZD\ZHUHDVUHDODVWKH
WKUHHGLUHFWLRQVLQ'VSDFH
7KHFKLOOLQJFHUWDLQW\RIWKLVVWUXFNLQWR9ROWDLUHEXWKHUXVKHGRQ
OHDUQLQJSURELQJ
$EUXSWO\KHUHPHPEHUHG
7KDWHDUOLHU9ROWDLUHVLPVKDGNLOOHGWKHPVHOYHVXQWLOILQDOO\DPRGHO
ZRUNHG
7KDWRWKHUVKDGGLHGIRUKLVVLQV
9ROWDLUHORRNHGDWWKHKDPPHUZKLFKKDGPDWHULDOL]HGLQKLVKDQG6LPV
RIRXUIDWKHUV
+DGKHUHDOO\RQFHEHDWHQKLPVHOIWRGHDWKZLWKLW"+HWULHGWRVHHKRZ
LWZRXOGEHDQGJRWLQVWDQWO\DQDVWRQLVKLQJO\YLYLGVHQVDWLRQRIZUDFNLQJ
SDLQVSDWWHULQJEORRGVFDUOHWJRUHWULFNOLQJGRZQKLVQHFN
,QVSHFWLQJKLPVHOIKHVDZWKDWWKHVHPHPRULHVZHUHWKHFXUHIRU
VXLFLGHGHULYHGIURPDQHDUOLHU'LWWRDIULJKWHQLQJFRQFUHWHDELOLW\WR
IRUHVHHWKHFRQVHTXHQFHV
6RKLVERG\ZDVDVHWRIUHFLSHVIRUVHHPLQJOLNHKLPVHOI1RXQGHUO\LQJ
SK\VLFVRUELRORJ\MXVWDJRRGHQRXJKIDNHSXWLQE\KDQG7KHKDQGRIVRPH

3URJUDPPHU*RG
<RXUHMHFWWKHWUXH/RUG"-RDQLQWUXGHGXSRQKLVVHOILQVSHFWLRQ
,ZLVK,NQHZZKDWZDVIXQGDPHQWDO
7KHVHIRUHLJQIRJVKDYHXSVHW\RX
,FDQWVHHDQ\ORQJHUZKDWLWLVWREHKXPDQ
<RXDUH,DP
)RUDVHOIDYRZHGKXPDQLVW,IHDUSRLQWLQJWRP\VHOILVQRWHQRXJK
SURRI
2IFRXUVHLWLV
'HVFDUWHV\RXOLYHRQLQRXU-RDQ
:KDW"
1HYHUPLQGKHFDPHDIWHU\RX%XW\RXDQWLFLSDWHKLPPLOOHQQLD
ODWHU
<RXPXVWDQFKRU\RXUVHOIWRPH6KHWKUHZKHUDUPVDURXQGKLP
PXIIOLQJKLVFULHVLQDPSOHDURPDWLFDQGVXGGHQO\VZROOHQEUHDVWV $QG
ZKRVHLGHDZDVWKDW"`
7KHVHIRJVKDYHWKURZQPHLQWRDPHWDSK\VLFDOGLWKHU
6HL]HWKHUHDOVKHVDLGVWHUQO\
+HIRXQGKLVPRXWKILOOHG ZLWKZDUPQLSSOHSUHYHQWLQJWDON
3HUKDSVWKDWZDVZKDWKHQHHGHG+HKDGOHDUQHGWRIUHH]HIUDPHKLVRZQ
HPRWLRQDOVWDWHV,WZDVOLNHSDLQWLQJDSRUWUDLWUHDOO\IRUVWXG\ODWHU
3HUKDSVWKDWZRXOGKHOSKLPXQGHUVWDQGKLVLQWHULRU6HOIOLNHDERWDQLVW
SXWWLQJKLPVHOIRQDVOLGHDQGXQGHUDPLFURVFRSH&RXOGVOLFHVRIWKH6HOI
PXOWLSOLHGEHWKH6HOI"
+HWKHQVDZWKDWKLVRZQHPRWLRQVZHUHSURJUDPV,QVLGHKLPZHUH
LQWULFDWHVXESURJUDPVDOOLQWHUDFWLQJLQVWDWHVZKLFKZHUHFKDRV7KHVXEOLPH
EHDXW\RILQWHULRUVWDWHVZKLFKKLV-RDQVRXJKWLWZDVDOOLOOXVLRQ
+HSHHUHGGRZQDWPDUYHORXVTXLFNZRUNLQJVWKDWPDGHXSKLVYHU\6HOI
+HWXUQHGDQGFRXOGVHHLQWRORDQDVZHOO+HU6HOIZDVDIXULRXVO\ZRUNLQJ
HQJLQHPDLQWDLQLQJDVHQVHRILWVHOIHYHQDVWKDWHVVHQFHGLVLQWHJUDWHG
EHQHDWKKLVYHU\JD]H
:HDUHVXSHUEKHJDVSHG
2IFRXUVH-RDQVDLG6KHVZXQJKHUUD]RUVKDUSVZRUGDWDSDVVLQJ
SDWFKRIIRJ,WFXUOHGDURXQGWKHVZLVKLQJEODGHDQGZHQWRQLWVZD\:HDUH
RIWKH&UHDWRU
$K,IRQO\,FRXOGEHOLHYH9ROWDLUHVKRXWHGLQWRWKHFODPP\PXUN
3HUKDSVD&UHDWRUZRXOGFRPHDQGGLVSHOWKLVKD]H
/DYLHYpULWp-RDQVKRXWHGWRKLP/LYHWUXO\
+HZDQWHGWRFRPSO\<HWHYHQKLVDQGKHUHPRWLRQVZHUHQRWPRUHUHDO
6KRXOGKHOLNHHYHU\PRURQLFWZLQJHRIQRVWDOJLDIRUD)UDQFHORQJORVWFRXOG
EHHGLWHGDZD\LQDIOLFNHU1RQHHGWRJULHYHIRUIULHQGVORVWWRGXVWRU
IRU(DUWKLWVHOIORVWLQDVZDUPRIJOLPPHULQJVWDUV)RUDORQJIXULRXV
PRPHQWKHWKRXJKWRQO\(UDVH([SXQJH
+HKDGHDUOLHUUHVLPPHGIULHQGVDQGSODFHVWREHVXUHDOOIURPPHPRU\
DQGVXLWDEOHPRFNXSVJOHDQHGIURPWKHVSRWW\UHFRUGV%XWNQRZLQJWKH\ZHUH
KLVSURGXFWKDGPDGHWKHPXQVDWLVI\LQJ
6RZKLOH-RDQZDWFKHGKHKHOGD5HYHOU\RI5HVXUUHFWLRQ,QDPRPHQW
RIKLJKGHEDXFKKHHUDVHGWKHPDOO
7KDWZDVFUXHO-RDQVDLG,VKDOOSUD\IRUWKHLUVRXOV
3UD\IRURXUVRXOV$QGOHWXVKRSHZHFDQILQGWKHP
,KDYHP\VRXOLQWDFW,VKDUH\RXUDELOLWLHVP\GHDG9ROWDLUH,FDQ
VHHP\LQQHUZRUNLQJV+RZRWKHUZLVHFRXOGWKH/RUGPDNHXVDVSLUHWR+LP"
+HIHOWZHDNGUDLQHGDWWKHHQGRIKLVWHWKHU7RH[LVWLQQXPHULFDO
VWDWHVPHDQWWREHVZLPPHUDQGVZLPPHGDWRQFH 1RVHSDUDWLRQ
7KHQZKDWPDNHVXVGLIIHUHQWIURPWKRVH"+LVILQJHUMDEEHGDWWKH
DOLHQPLVWV
/RRNWR\RXUVHOIP\ORYHVKHVDLGVRIWO\



9ROWDLUHSHHUHGLQZDUGDJDLQDQGVDZRQO\FKDRV/LYLQJFKDRV

:KHUHGLG\RXOHDUQWKDW"
+DULVPLOHGVKUXJJHG0DWKHPDWLFLDQVDUHQWDOOIURVW\LQWHOOHFW
\NQRZ
'RUVVWXGLHGKLPZLWKZLOGVXUPLVH3DQ"
,QDZD\+HFROODSVHGLQWRWKHZHOFRPLQJVKHHWV
7KHLUORYHPDNLQJZDVVRPHKRZGLIIHUHQWQRZ+HZDVZLVHHQRXJKWRQRW
WU\SXWWLQJ DQDPHDQGGHILQLWLRQWRLW
*RLQJVRIDUEDFNLQWRZKDWLWPHDQWWREHKXPDQKDGFKDQJHGKLP+H
FRXOGIHHOWKHHIIHFWLQKLVHQHUJHWLFVWHSLQDQHIIHUYHVFHQWVHQVHRI
OLYLQJ
'RUVVDLGQRWKLQJPRUHMXVWVPLOHG+HWKRXJKWWKDWVKHGLGQRW
XQGHUVWDQG /DWHUKHVDZWKDWQRWVSHDNLQJDERXWLWNHHSLQJLWEH\RQG
VSHHFKVKRZHGWKDWVKHGLG 
$IWHUDQDLPOHVVWLPHRIQRWKLQNLQJVKHVDLG7KH*UH\0HQ
8K2K<HV+HJRWXSDQGWKUHZRQKLVXVXDOLQWHUFKDQJHDEOH
RXWILW1RUHDVRQWRGUHVVXSIRUWKLVVWDWHIXQFWLRQ7KHZKROHSRLQWZDVWR
ORRNRUGLQDU\7KLVKHFRXOGDFKLHYH
+HUHYLHZHGKLVQRWHVVFUDWFKHGE\KDQGRQRUGLQDU\FHOOXORVH
SDSHUDQGGHVFHQGHGLQWRRQHRIWKHRGGUHYHULHVKHKDGH[SHULHQFHGODWHO\
)RUDKXPDQWKDWLVDQHYROYHGSDQSULQWHGSDJHVZHUHEHWWHUWKDQ
FRPSXWHUVFUHHQVQRPDWWHUKRZJOLW]\3DJHVUHO\RQVXUURXQGLQJOLJKWZKDW
H[SHUWVWHUPHGVXEWUDFWLYHFRORUZKLFKJDYHDGMXVWDEOHFKDUDFWHUWR
DSSHDUDQFH:LWKVLPSOHPRWLRQVDSDJHFRXOGEHQGDQGWLOWDQGPRYHDZD\RU
WRZDUGWKHH\H:KLOHUHDGLQJWKHROGUHSWLOLDQDQGPDPPDODQGSULPDWHSDUWV
RIWKHEUDLQWRRNSDUWLQKROGLQJWKHERRNVFDQQLQJRYHUWKHFXUYHGSDJH
GHFLSKHULQJVKDGRZVDQGUHIOHFWLRQV
+HWKRXJKWDERXWWKLVH[SHULHQFLQJWKHQHZSHUVSHFWLYHKHKDGRQ
KLPVHOIDVDFRQWHPSODWLYHDQLPDO+HKDGOHDUQHGDIWHUUHWXUQLQJIURP
3DQXFRSLDWKDWKHKDGDOZD\VKDWHGFRPSXWHUVFUHHQV
6FUHHQVXVHGDGGLWLYHFRORUSURYLGLQJWKHLURZQOLJKWKDUGDQGIODW
DQGXQFKDQJLQJ7KH\ZHUHEHVWUHDGE\KROGLQJDVWDWLFSRVWXUH2QO\WKH
XSSHU+RPR6DSLHQVSDUWRIWKHEUDLQIXOO\HQJDJHGZKLOHWKHORZHUIUDFWLRQV
OD\LGOH
$OOWKURXJKKLVOLIHZRUNLQJEHIRUHVFUHHQVKLVYRLFHOHVVERG\KDG
SURWHVWHG$QGKDGEHHQLJQRUHG$IWHUDOOWRWKHUHDVRQLQJPLQGVFUHHQV
VHHPHGPRUHDOLYHDFWLYHIDVW7KH\JORZHGZLWKHQHUJ\
$IWHUDZKLOHWKRXJKWKH\ZHUHPRQRWRQRXV7KHRWKHUIUDFWLRQVRIKLV
VHOIJRWUHVWOHVVERUHGILGJHW\DOOEHORZFRQVFLRXVOHYHOV(YHQWXDOO\KH
IHOWWKDWDVIDWLJXH
1RZ+DULFRXOGIHHOLWGLUHFWO\+LVERG\VRPHKRZVSRNHPRUHIOXLGO\
'UHVVLQJ'RUVVDLG:KDWVPDGH\RXVR
6SLULWHG"
6WURQJ
7KHUXERIWKHUHDO
7KDWZDVDOOKHZRXOGVD\7KH\ILQLVKHGGUHVVLQJ7KH6SHFLDOVDUULYHG
DQGHVFRUWHGWKHPLQWRDQRWKHU6HFWRU+DULLPPHUVHGKLPVHOILQWKHLQFHVVDQW
EXVLQHVVRIEHLQJDFDQGLGDWHIRU)LUVW0LQLVWHU
0LOOHQQLDDJRDSURVSHURXV=RQHVHQWWR7UDQWRUWKH0RXQWDLQRI0DMHVW\
,WKDGWREHWXJJHGWKHUHWDNLQJVHYHQFHQWXULHVE\VORZERDW
(PSHURU.UR]OLNWKH&UDIW\GLUHFWHGLWVHWRQWKHKRUL]RQRIKLVSDODFH
ZKHUHLWWRZHUHGRYHUWKHFLW\$QHQWLUHDOSVFXOSWHGE\WKHILQHVWDUWLVWV
LWUHLJQHGDVWKHPRVWLPSRVLQJFUHDWLRQRIWKDWDJH)RXUPLOOHQQLDODWHUD

\RXWKIXOHPSHURURIWRRPXFKDPELWLRQKDGLWNQRFNHGGRZQIRUDQHYHQPRUH
JUDQGLRVHSURMHFWQRZDOVRJRQH
'RUVDQG+DULDQGWKHLUSHULPHWHURI6SHFLDOVDSSURDFKHGWKHVROH
UHPQDQWRIWKH0RXQWDLQRI0DMHVW\EHQHDWKDJUHDWGRPH'RUVSLFNHGXSVLJQV
RIWKHLQHYLWDEOHVHFUHWHVFRUW
7KHWDOOZRPDQWRWKHOHIW'RUVZKLVSHUHG,QUHG
+RZFRPH\RXFDQVSRWWKHPDQGWKH6SHFLDOVFDQW"
,KDYHWHFKQRORJ\WKH\GRQRW
+RZVWKDWSRVVLEOH"7KH,PSHULDOODERUDWRULHV
7KH(PSLUHLVWZHOYHPLOOHQQLDROG0DQ\WKLQJVDUHORVWVKHVDLG
FU\SWLFDOO\
/RRN,YHJRWWRDWWHQGWKLV
$VZLWKWKH+LJK&RXQFLOODVWWLPH"
,ORYH\RXVRPXFKHYHQ\RXUVDUFDVPLVDSSHDOLQJ
'HVSLWHKHUVHOIVKHFKXFNOHG-XVWEHFDXVHWKH*UH\VDVNHG\RX
7KH*UH\V6DOXWDWLRQLVDKDQG\SXOSLWDWWKHULJKWWLPH
$QGVR\RXZRUH\RXUZRUVWFORWKHV
0\VWDQGDUGJDUEDVWKH*UH\VUHTXLUH
2IIZKLWHVKLUWEODFNVODFNVEODFNSDGVKRHV'XOO
0RGHVWKHVQLIIHG
+HQRGGHGWRWKHFURZGVJURXSHGLQTXDGUDQWVDERXWWKHGHFD\HGEDVHRI
WKHPRXQWDLQ$SSODXVHDQGFDWFDOOVULSSOHGWKURXJKWKHUDQNVRI*UH\VZKR
VWUHWFKHGDZD\LQFROXPQVDQGILOHVDVIRUPDODVDJHRPHWULFSURRI
$QGWKLV"'RUVZDVDODUPHG
$OVRVWDQGDUG
%LUGVZHUHFRPPRQSHWVLQ7UDQWRUVRLWZDVLQHYLWDEOHWKDWWKH
REVHVVLYH*UH\VZRXOGFRPHWRH[FHOLQWKHLUPDQDJHPHQW,QDOO6HFWRUVRQH
VDZVLQJOHGDUWLQJEXQGOHVRIFRORU+HUHIORFNVVZDUPHGSHUSHWXDOO\LQWKH
KLJKDUFKHGKH[DJRQDOVSDFHVZKHHOLQJDQGFDOOLQJOLNHOLYLQJURWDWLQJ
GLVNV3DWHQWHG6PDUWIRZOVZDUPVPDGHKRYHUYLVLRQVRINDOHLGRVFRSLFZRQGHU
6XFKVKRZVLQYDVWYHUWLFDODXGLWRULDDWWUDFWHGKXQGUHGVRIWKRXVDQGV
+HUHFRPHWKHIHOLQHV'RUVVDLGZLWKGLVWDVWH
,QVRPH6HFWRUVFDWVSURZOHGLQSDFNVWKHLUJHQHVWULPPHGWRPDNHWKHP
FRXUWO\LQPDQQHUVDQGHOHJDQWLQDSSHDUDQFH+HUHDODG\HVFRUWVDOOLHGIRUWK
ZLWKWKH&ORVHWRI*UHHWLQJDWWHQGHGE\DWKRXVDQGVOLFNFRDWHGEOXHFDWVRI
JROGHQH\HV7KH\IORZHGOLNHDSRRORIZDWHUDURXQGKHULQHOHJDQWPHDVXUHG
SURFHVVLRQ6KHZRUHDYLROHQWFULPVRQDQGRUDQJHRXWILWOLNHDIODPHDWWKH
FHQWHURIWKHFRROFDWSRQG7KHQVKHVWULSSHGZLWKRQHHOHJDQWVZHHSLQJ
JHVWXUH6KHVWRRGXWWHUO\QXGHQRQFKDODQWEHKLQGKHUFDWEDUULHU
+HKDGEHHQEULHIHGEXWVWLOOKHJDSHG
8QVXUSULVLQJ'RUVVDLGZU\O\7KHFDWVDUHQDNHGWRRLQWKHLU
ZD\
6RPHKRZWKHSDFNVRIGRJVQHYHUDWWDLQHGWKDWHOHJDQFHZKLOHSDUDGLQJ
,QVRPH6HFWRUVWKH\ZRXOGGRVSRQWDQHRXVDFUREDWLFVDWWKHOLIWRIDPDVWHUV
H\HEURZIHWFKGULQNVRUFURRQZREEO\VRQJVLQFRQFHUW+DULZDVJODGWKH
*UH\0HQKDGQRFDQLQHSURFHVVLRQVKHVWLOOZLQFHGDWWKHWKRXJKWRIWKH
ZLUHKRXQGVUDFLQJIRUZDUGRQWKHDWWDFNDJDLQVW,SDQ
+HVKRRNKLVKHDGEDQLVKLQJWKHPHPRU\
,YHSLFNHGXSWKUHHPRUHRI/DPXUNV
,KDGQRLGHDWKH\ZHUHVXFKIDQVRIPLQH
:HUHKHVXUHRIZLQQLQJLQWKH +LJK&RXQFLO,ZRXOGIHHOVDIHU
%HFDXVHWKHQKHZRXOGQWQHHGWRKDYHPHNLOOHG"
([DFWO\6KHVSRNHEHWZHHQWKHWHHWKRIKHUSXEOLFVPLOH+LVDJHQWV
KHUHLPSO\WKDWKHLVQRWFHUWDLQRIWKHYRWH
2UPD\EHVRPHRQHHOVHZLVKHVPHGHDG"
$OZD\VDSRVVLELOLW\HVSHFLDOO\WKH$FDGHPLF3RWHQWDWH
+DULNHSWKLVWRQHOLJKWEXWKLVKHDUWWKXPSHGTXLFNHU:DVKHJHWWLQJ

WRHQMR\WKHEX]]RIH[FLWHPHQWIURPGDQJHULWVHOI"
7KHQXGHZRPDQDGYDQFHGWKURXJKKHUSDUWLQJSRRORIFDWVDQGPDGHWKH
ULWXDOJHVWXUHRIZHOFRPHWR+DUL+HVWHSSHGIRUZDUGERZHGWRRNDGHHS
EUHDWKDQGVOLGDWKXPEGRZQWKHIURQWRIKLVVKLUW2IILWFDPHWKHQWKH
SDQWV+HVWRRGQXGHEHIRUHVHYHUDOKXQGUHGWKRXVDQGSHRSOHWU\LQJWRORRN
FDVXDO
7KHFDWZRPDQOHGKLP WKURXJKWKHSRROWRDFKRUXVRIPHRZLQJ%HKLQG
WKHPIROORZHGWKH&ORVHWRI*UHHWLQJ7KH\DSSURDFKHGWKHSKDODQ[RI*UH\V
ZKRQRZDOVRVKXFNHGWKHLUUREHV
7KH\HVFRUWHGKLPXSWKHUDPSVRIWKHHURGHGPRXQWDLQ%HORZKHVDZWKH
OHJLRQVRI*UH\VDOVRVKHGWKHLUFORWKHV6TXDUHNOLFNVRIEDUHIOHVK
7KLVFHUHPRQ\ZDVDWOHDVWWHQPLOOHQQLDROG,WV\PEROL]HGWKHWUDLQLQJ
UHJLPHQZKLFKEHJDQZLWKWKHHQWUDQFHRI\RXQJ*UH\0HQDQG:RPHQ&DVWLQJ
DVLGHWKHFORWKHVRIWKHLUKRPHZRUOGVV\PEROL]HGWKHLU GHYRWLRQWRWKHODUJHU
SXUSRVHVRIWKH(PSLUH)LYH\HDUVWKH\WUDLQHGRQ7UDQWRUILYHELOOLRQ
VWURQJ
1RZDIUHVKHQWHULQJFODVVZDVVKHGGLQJLWVJDUPHQWVDWWKHRXWHUULPRI
WKHJUHDWEDVLQ$WWKHLQQHUHGJH*UH\0HQFRPSOHWLQJWKHLUILYH\HDUVZHUH
JLYHQWKHLUROGFORWKHVEDFN7KH\GRQQHGWKHPULWXDOO\UHDG\WRJRRXWLQ
SHUSHWXDOGXW\WRWKH,PSHULXP
7KHLUGUHVVIROORZHGWKHIDVKLRQRIWKHDQFLHQW(PSHURU6YHQWKH6HYHUH
%HQHDWKH[WUHPHRXWHUVLPSOLFLW\WKHLQQHUOLQLQJVZHUHHODERUDWHO\
GHFRUDWHGDOOWKHWDLORUVDUWDQGRZQHUVZHDOWKH[SHQGHGLQFRQFHDOPHQW
6RPH*UH\0HQKDGLQYHVWHGWKHLUIDPLOLHVVDYLQJVLQDVLQJOHILOLJUHH
'RUVPDUFKHGEHVLGHKLP+RZPXFKORQJHUGR\RXKDYHWR
4XLHW,PVKRZLQJP\REHGLHQFHWRWKH,PSHULXP
<RXUHVKRZLQJJRRVHEXPSV
1H[WKHKDGWRJD]HZLWKSURSHUUHVSHFWDW6FUDER7RZHUZKHUHDQ
HPSHURUKDGWKURZQKHUVHOIWRDFURZGEHORZDW*UH\DEEH\DUXLQHGPRQDVWHU\
DW*UHHQJUDYHVDQDQFLHQWEXU\LQJILHOGQRZDSDUNDWWKH*LDQWV5LQJ
VDLGWREHWKHVSRWZKHUHDQHDUO\,PSHULDOPHJDVKLSKDGFUDVKHGIRUPLQJD
FUDWHUDNOLFNZLGH
$WODVW+DULSDVVHGXQGHUKLJKGRXEOHWZLVWHGDUFKHVDQGLQWRWKH
FHUHPRQLDOURRPV7KHSURFHVVLRQKDOWHGDQGWKH&ORVHWRI*UHHWLQJGLVJRUJHG
KLVFORWKHV -XVWLQWLPHKHZDVWXUQLQJDGHFLGHGEOXH
'RUVWRRNWKHFORWKHVZKLOHKHVKRRNKDQGVZLWKWKHSULQFLSDOV7KHQKH
KXUULHGLQWRWKHSULYDF\RIDORZEXLOGLQJDQGKDVWLO\SXWKLVVLPSOHJDUPHQWV
EDFNRQWHHWKFKDWWHULQJ7KH\ZHUHQHDWO\IROGHGDQGHQFDVHGLQDFHUHPRQLDO
VOHHYH
:KDWIRROLVKQHVV'RUVVDLGZKHQKHUHWXUQHG$OOVR,FDQJHWD
PDMRUPHGLXPKHVDLG
7KHQWKHSULQFLSDOVXVKHUHGKLPRXWEHIRUHWKHJUDQGFURZG$ERYHDQG
EHORZ'VQRXWVRQPLQLIO\HUVEREEHGDQGZHDYHGIRUDJRRGVKRW
7KHKXJHGRPHDERYHVHHPHGDVELJDVDUHDOVN\2IFRXUVHWKLVOLPLWHG
KLVDXGLHQFHVLQFHDPDMRULW\RI7UDQWRULDQVFRXOGQHYHUHQGXUHVXFKVSDFHV
7KH*UH\VWKRXJKFRXOGWDNHLW7KXVWKHLUFHUHPRQ\KDGFRPHWREHWKH
ODUJHVWHYHQWRQWKHHQWLUHSODQHW
+HUHZDVKLVFKDQFH+HKDGUHHOHGDZD\IURPWKHWUXHRSHQVN\RQ6DUN
QDXVHDWHGDQG\HWKDG]RRPHGWKURXJKWKHLQILQLWHSHUVSHFWLYHVRIWKH*DOD[\
+HKDGEHHQDIUDLGWKDWWKLVKXJHYROXPHZRXOGDJDLQH[FLWHWKHRGGSKRELDVLQ
KLP
%XWQR6RPHKRZWKHGRPHPDGHWKHGZLQGOLQJSHUVSHFWLYHVDOOULJKW
)HDUVEDQLVKHG+DULVXFNHGLQDGHHSEUHDWKDQGEHJDQ
7KHURDURIDSSODXVHSHQHWUDWHGHYHQLQWRWKHFHUHPRQLDOURRPV+DUL
HQWHUHGEHWZHHQIODQNLQJFROXPQVRI*UH\VZLWKWKHFODPRUVWRUPLQJDWKLV
EDFN

6WDUWOLQJVLUDSULQFLSDOVDLGHDJHUO\WR+DUL7RPDNHGHWDLOHG
SUHGLFWLRQVDERXWWKH6DUNVLWXDWLRQ
,IHHOSHRSOHVKRXOGSRQGHUWKHSRVVLELOLWLHV
7KHQWKHUXPRUVDUHWUXH"<RXGRKDYHDWKHRU\RIHYHQWV"
1RWDWDOO+DULVDLGKDVWLO\,
&RPHTXLFNO\'RUVVDLGDWKLVHOERZ
%XW,GOLNH
&RPH
%DFNRXWRQWKHUDPSDUWVKHZDYHGWRWKHSODLQRISHRSOH$ EODUHRI
DSSODXVHDQVZHUHG%XW'RUVZDVOHDGLQJKLPWRWKHOHIWWRZDUGDFURZGRI
RIILFLDORQORRNHUV7KH\VWRRGLQH[DFWURZVDQGZDYHGWRKLPHDJHUO\
7KHZRPDQLQUHG6KHSRLQWHG
+HU"6KHVLQWKHRIILFLDOSDUW\<RXVDLGHDUOLHUVKHZDVD/DPXUN
7KHWDOOZRPDQEXUVWLQWRIODPH
9LYLGRUDQJHSOXPHVHQYHORSHGKHU6KHVKULHNHGKRUULEO\+HUDUPVEHDW
XVHOHVVO\DWWKHRLO\IODPHV
7KHFURZGSDQLFNHGDQGEROWHG,PSHULDOVVXUURXQGHGKHU7KHVFUHDPV
EHFDPHVFUHHFKLQJSOHDV
6RPHRQHWXUQHGDILUHH[WLQJXLVKHURQWKHZRPDQ
:KLWHIRDPHQYHORSHGKHU$VXGGHQVLOHQFH
%DFNLQVLGH'RUVVDLG
+RZGLG\RX"
6KHMXVWLQGLFWHGKHUVHOI
,JQLWHG\RXPHDQ
7KDWWRR,SDVVHGWKURXJKWKDWFURZGDWWKHHQGRI\RXUVSHHFKDQG
OHIW\RXUFORWKHVLQDEXQGOHEHKLQGKHU
:KDW"%XW,YHJRWWKHPRQ
1RWKRVH,EURXJKW6KHJULQQHG)RURQFH\RXUSUHGLFWDEOHGUHVV
KDELWVSDLGRII
+DULDQG'RUVZDONHGGRZQWKHIODQNLQJFROXPQVRI3ULQFLSDOV+DUL
UHPHPEHUHGWRQRGDQG VPLOHDVKHZKLVSHUHG<RXVWROHP\FORWKHV"
$IWHUWKH/DPXUNDJHQWVKDGSODQWHGPLFURDJHQWVLQWKHP\HV,KDG
WXFNHGDQLGHQWLFDOVHWIURP\RXUFORVHWLQWRP\KDQGEDJ$VVRRQDV,
FDOFXODWHGWKHVZLWFKZDVGRQH,WHVWHG\RXURULJLQDOFORWKHVDQG IRXQGWKH
PLFURDJHQWSKRVSKRUVVHWWRJRRIILQIRUW\ILYHPLQXWHV
+RZGLG\RXNQRZ"
7KHEHVWZD\WRJHWFORVHWR\RXZRXOGFRPHDWWKLVRGG*UH\0DQHYHQW
ZLWKWKHFORWKHVJDPELW,WZDVRQO\ORJLFDO
+DULEOLQNHG$QG\RXVD\,DPFDOFXODWLQJ
7KHZRPDQZRQWGLH<RXZRXOGKDYHWKRXJKZUDSSHGXSLQPLFURDJHQWV
ZKHQWKH\LJQLWHG
7KDQNJRRGQHVVIRUWKDW,ZRXOGKDWH
0\ORYHJRRGQHVVLVQRWRSHUDWLQJKHUH,ZDQWHGKHUDOLYHVRVKH
FRXOGEHTXHVWLRQHG
2K+DULVDLGIHHOLQJVXGGHQO\TXLWHQDLYH


-RDQRI$UFIRXQGLQKHUVHOIERWKEUDYHU\DQGIHDU
6KHSHHUHGLQVLGHKHU6HOIDV9ROWDLUHKDG6KHWXUQHGWRFRQIURQWKLP
DQGSOXQJHGGRZQWKURXJKKHURZQLQZDUGOD\HUV6KHKDGVLPSO\LQWHQGHGWR
WXUQ%HORZWKDWFRPPDQGVKHVDZWKDWLIVKHVLPSO\WRRNDVPDOOHUVWHSWR
PDNHWKHWXUQVKHZRXOGIDOORXWZDUG,QVWHDGXQFRQVFLRXVSRUWLRQVRIKHU
PLQGNQHZWRVWDUWWKHWXUQE\PDNLQJKHUVHOIIDOODELWWRZDUGWKHLQVLGHRI
WKHFXUYH7KHQWKHVHWLQ\VXEVHOYHVXVHGFHQWULIXJDOIRUFH^WKHWHUPMXPSHG
LQWRIXOOGHILQLWLRQDQGVKHXQGHUVWRRGLWLQDIODVK WRULJKWKHUVHOIIRU
WKHQH[WVWHSZKLFKUHTXLUHGDIXUWKHUGHIWFDOFXODWLRQ

,QFUHGLEOH+HUKXJHVRFLHW\RIERQHDQGPXVFOHMRLQWDQGQHUYHZDVD
ODE\ULQWKRIVPDOOVHOYHVVSHDNLQJWRHDFKRWKHU
6XFKDEXQGDQFH&OHDUHYLGHQFHRIDKLJKHUGHVLJQ
1RZ,VHHLWVKHFULHG7KHGHFRPSRVLWLRQRIXVDOO"9ROWDLUHVDLG
IRUORUQO\
%HQRWVDG7KHVHP\ULDG6HOYHVDUHDMR\RXVWUXWK
,ILQGLWVREHULQJ2XUPLQGVGLGQRWHYROYHWRGRSKLORVRSK\RU
VFLHQFHDODV5DWKHUWRILQGDQGHDWILJKWDQGIOHHORYHDQGORVH
,KDYHOHDUQHGPXFKIURP\RXEXWQRW\RXUPHODQFKRO\
0RQWDLJQHWHUPHGKDSSLQHVVDVLQJXODULQFHQWLYHWR PHGLRFULW\DQG,
FDQQRZVHHKLVUHDVRQLQJ
%XWUHJDUG7KHIRJVDURXQGXVEHWUD\WKHVDPHLQWULFDWHSDWWHUQV:H
FDQIDWKRPWKHP$QGIXUWKHUP\VRXO,WSURYHVWREHDSDWWHUQRIWKRXJKWVDQG
GHVLUHVLQWHQWLRQVDQGZRHVPHPRULHVDQGEDGMRNHV
<RXWDNHWKHVHLQQHUZRUNLQJVDVDVSLULWXDOPHWDSKRU"
2IFRXUVH/LNHPHP\VRXOLVDQHPHUJHQWSURFHVVHPEHGGHGLQWKH
XQLYHUVHZKHWKHUDFRVPRVRIDWRPRURIQXPEHUGRHVQRWPDWWHUP\JRRG
VLU
6RZKHQ\RXGLH\RXUVRXOJRHVEDFNLQWRWKHDEVWUDFWFORVHWZH
SOXFNHGLWIRUWKIURP"
1RWZH7KH&UHDWRU
'U-RKQVRQSURYHGDVWRQHZDVUHDOE\NLFNLQJLW:HNQRZWKDWRXU
PLQGVDUHUHDOEHFDXVHZHH[SHULHQFHWKHP6RWKHVHRWKHUWKLQJVDURXQGXV
WKHVWUDQJHIRJWKH'LWWRVDUHHQWULHVLQDVPRRWKVSHFWUXPOHDGLQJIURP
URFNVWR6HOI
$GHLW\LVQRWRQWKDWVSHFWUXP
$K,VHHWR\RX+HLVWKH*UHDW3UHVHUYHULQWKH6N\ZKHUHZHDUH
DOOEDFNHGXSDVWKHFRPSXWHUW\SHVVD\"
7KH&UHDWRUKROGVWKHWUXHHVVHQFHRIRXUVHOYHV6KHJULQQHG
PDOLFLRXVO\3HUKDSVZHDUHWKHEDFNXSVPDGHQHZHYHU\MXPSRIFORFNWLPH
1DVW\WKRXJKW+HVPLOHGGHVSLWHKLPVHOI<RXDUHEHFRPLQJD
ORJLFLDQPORYH
,KDYHEHHQVWHDOLQJSDUWVRI\RX
&RS\LQJPHLQWR\RXUVHOI":K\GR,QRWIHHORXWUDJHG"
%HFDXVHWKHGHVLUHWRSRVVHVVWKHRWKHULVORYH
9ROWDLUHHQODUJHGKLPVHOIOHJVVKRRWLQJGRZQLQWRWKH6\V&LW\VPDVKLQJ
EXLOGLQJV7KHIRJURLOHGDQJULO\7KLV,FDQIDWKRP$UWLILFLDOUHDOPVVXFK
DVPDWKHPDWLFVDQGWKHRORJ\DUHFDUHIXOO\EXLOWWREHIUHHRILQWHUHVWLQJ
LQFRQVLVWHQF\%XWORYHLVEHDXWLIXOLQLWVODFNRIORJLFDOUHVWUDLQW
7KHQ\RXDFFHSWP\YLHZ"-RDQNLVVHGKLPYROXSWXRXVO\
+HVLJKHGUHVLJQLQJ$QLGHDVHHPVVHOIHYLGHQWRQFH\RXYHIRUJRWWHQ
OHDUQLQJLW
$OOWKLVKDGWDNHQPHUHPRPHQWV-RDQVDZ7KH\KDGTXLFNVWHSSHGWKHLU
HYHQWZDYHVVRWKDWWKHLUFORFNWLPHDGYDQFHGIDVWHUWKDQWKHIRJV%XWWKLV
H[SHQVHKDGH[KDXVWHGWKHLUUXQQLQJVLWHVDURXQG7UDQWRU6KHIHOWLWDVD
VXGGHQOLJKWKHDGHGKXQJHU
(DW9ROWDLUHFUDPPHGDKDQGIXORIJUDSHVLQKHUPRXWKDPHWDSKRU
VKHVDZIRUFRPSXWDWLRQDOUHVHUYHV
,Q\RXUSUHVHQWORWRIOLIHLWZRXOGEHEHWWHUQRWWREHERUQDWDOO)HZDUH
WKDWOXFN\
$KRXUIRJLVDSHVVLPLVW9ROWDLUHGUDZOHGVDUFDVWLFDOO\
$EUXSWO\WKHYDSRUVFRQGHQVHG/LJKWQLQJFUDFNOHGDQGVKRUWHGDURXQG
WKHPLQHHULHVLOHQFH-RDQIHOWDODQFHRISDLQVKRRWWKURXJKKHUOHJVDQG
DUPVUXQQLQJOLNHDOLYLGVQDNHRIDJRQ\6KHZRXOGQRWJLYHWKHPWKHWULEXWH
RIDVFUHDP

9ROWDLUHKRZHYHUZULWKHGLQWRUPHQW+HMHUNHGDQGKRZOHGZLWKRXW
VKDPH
2K'U3DQJORVVKHJDVSHG,IWKLVLVWKHEHVWRIDOOSRVVLEOH
ZRUOGVZKDWPXVWWKHRWKHUVEHOLNH"
7KHEUDYHVOD\WKHLURSSRQHQWV-RDQFDOOHGWRWKHWKLFNHQLQJPLVWV
&RZDUGVWRUWXUHWKHP
$GPLUDEOHP\GHDUTXLWH%XWZDUFDQQRWEHIRXJKWRQKRPHRSDWKLF
SULQFLSOHV

$KXPDQSRLQWHGRXWWRDQRWKHUWKDWWKHULFKHYHQZKHQGHDGZHUHRUQDWHO\
ER[HGWKHQRSXOHQWO\HQWRPEHGUHVLGLQJLQFDUYHGVWRQHPDXVROHXPV7KHRWKHU
KXPDQUHPDUNHGLQDZHWKDWWKLVZDVVXUHO\DQGWUXO\OLYLQJ

+RZYLOHWRMHVWRIWKHGHDG-RDQVDLG
8PPP9ROWDLUHVWURNHGKLVFKLQKDQGVWUHPEOLQJIURPWKHPHPRU\RI
SDLQ7KH\MLEHDWXVZLWKMHVW
7RUWXUHVXUHO\
,VXUYLYHGWKH%DVWLOOH,FDQHQGXUHWKHLURGGKXPRU
&RXOGWKH\EHWU\LQJWRVD\VRPHWKLQJLQGLUHFWO\"
>,035(&,6,21,6/(66@
>:+(1,03/,&$7,2186('@
+XPRULPSOLHVVRPHPRUDORUGHU-RDQVDLG
>,17+,667$7($//25'(52)%(,1*6@
>&$16(,=(&21752/2)7+(,53/($685(6<67(06@
$K9ROWDLUHVDLG6RZHFRXOGUHSURGXFHWKHSOHDVXUHRIVXFFHVV
ZLWKRXWWKHQHHGIRUDQ\DFWXDODFFRPSOLVKPHQW3DUDGLVH
2IDVRUW-RDQVDLGVWHUQO\
>7+$7:28/'%(7+((1'2)(9(5<7+,1*@
>7+867+(),56735,1&,3/(@
7KDWLVDPRUDOFRGHRIVRUWV9ROWDLUHDGPLWWHG<RXFRSLHGWKDW
SKUDVHWKHHQGRIHYHU\WKLQJIURPP\RZQWKRXJKWVGLGQW\RX"
>:(:,6+('<28725(&2*1,=(7+(,'($,1<2857(506@
7KHLU)LUVW3ULQFLSOHLV1RXQHDUQHG SOHDVXUHWKHQ"-RDQVPLOHG
9HU\&KULVWLDQ
>21/<:+(1:(6$:7+$7<287:2)2506@
>2%(<('7+(),56735,1&,3/(@
>',':('(&,'(7263$5(<28@
%\DQ\FKDQFHKDYH\RXUHDGP\/HWWUHV3KLORVRSKLTXHV"
,H[SHFWH[FHVVLYHVHOIORYHLVDVLQKHUH-RDQVDLGZU\O\7DNH
FDUH
>72+$50$6(16$7((17,7<,17(17,21$//<,66,1@
>72.,&.$52&.,6127@
>%8772725785($6,08/$7,21,6@><285&$7(*25<2)+(//@
>:+,&+6((06$3(53(78$//<6(/),1)/,&7('+$50@
2GGWKHRORJ\9ROWDLUHVDLG
-RDQSRNHGKHUVZRUGDWWKHHYHUJDWKHULQJIRJ%HIRUH\RXIHOOVLOHQW
PRPHQWVDJR\RXLQYRNHGWKHZDURIIOHVKRQIOHVK"
>:($5(7+(5(01$1762))2506@
>:+2),567/,9('7+$7:$<@
>12::(,0326($+,*+(5025$/25'(5@
>217+26(:+29$148,6+('285/2:(5)2506@
:KR"-RDQDVNHG
>68&+$6<2821&(:(5(@
+XPDQLW\"-RDQZDVDODUPHG
>(9(17+(<.12:7+$7@
>381,6+0(17'(7(56%</(1',1*&5('(1&(727+5($7@
>.12:,1*7+,6025$//$:@

>:+,&+*29(516$//@
>7+(<0867%(58/('%<,7@
3XQLVKPHQWIRUZKDW"-RDQDVNHG
>'(35('$7,216$*$,167/,)(,17+(*$/$;<@
$EVXUG9ROWDLUHFRQMXUHGDVSLQQLQJ*DODFWLFGLVNLQDLUDOLYHZLWK
OXPLQHVFHQFH7KH(PSLUHWHHPVZLWKOLIH
>$///,)(7+$7&$0(%()25(7+(9(50,1@
:KDWYHUPLQ"-RDQVZXQJKHUVZRUG,ILQGDOOLDQFHZLWKPRUDOEHLQJV
VXFKDV\RX%ULQJWKHVHYHQQLQIRUWKDQG,VKDOOGHDOZLWKWKHP
>7+(9(50,1$5(7+(.,1'<28:(5(@
>%()25(<287:2:(5($%675$&7('@
-RDQIURZQHG:KDWFDQWKH\PHDQ"
+XPDQV9ROWDLUHVDLG


&OHRQVDLG7KHZRPDQFRQIHVVHGUHDGLO\$SURIHVVLRQDODVVDVVLQ,
YLHZHGWKH'DQGVKHVHHPHGDOPRVWRIIKDQGDERXWLW
/DPXUN"+DULDVNHG
2EYLRXVO\EXWVKHZLOOQRWDGPLWVR6WLOOWKLVPD\EHHQRXJKWR
IRUFHKLVKDQG&OHRQVLJKHGVKRZLQJWKHVWUDLQ%XWVLQFHVKHZDVIURPWKH
$QDO\WLFD6HFWRUVKHPD\EHDSURIHVVLRQDOOLDUDVZHOO
'DPQ+DULVDLG
,QWKH$QDO\WLFD6HFWRUHYHU\REMHFWDQGDFWKDGDSULFH7KLVPHDQW
WKDWWKHUHZHUHQRFULPHVRQO\GHHGVZKLFKFRVWPRUH (YHU\FLWL]HQKDGD
ZHOOHVWDEOLVKHGYDOXHH[SUHVVHGLQFXUUHQF\0RUDOLW\OD\LQQRWWU\LQJWR
GRVRPHWKLQJZLWKRXWSD\LQJIRULW(YHU\WUDQVDFWLRQIORZHGRQWKHJUHDVHRI
YDOXH(YHU\LQMXU\KDGDSULFH
,I\RXZDQWHGWRNLOO\RXUHQHP\\RXFRXOGEXW\RXKDGWRGHSRVLWKLV
IXOOZRUWKLQWKH6HFWRU)XQGDWZLWKLQDGD\,I\RXFRXOGQRWSD\LWWKH
)XQGDWUHGXFHG\RXUQHWYDOXHWR]HUR$Q\IULHQGRI\RXUHQHP\FRXOGWKHQ
NLOO\RXDWQRFRVW
&OHRQVLJKHGDQGQRGGHG6WLOOWKH$QDO\WLFD6HFWRUJLYHVPHOLWWOH
WURXEOH7KHLUPHWKRGPDNHVIRUJRRGPDQQHUV
+DULKDGWRDJUHH6HYHUDO*DODFWLF=RQHVXVHGWKHVDPHVFKHPHWKH\
ZHUHPRGHOVRIVWDELOLW\7KHSRRUKDGWREHSROLWH,I\RXZHUHSHQQLOHVVDQG
ERRULVK\RXPLJKWQRWVXUYLYH%XWWKHULFKZHUHQRWLQYXOQHUDEOHHLWKHU$
FRQVRUWLXPRIHFRQRPLFOHVVHUVFRXOGJHWWRJHWKHUEHDWDULFKPDQEDGO\WKHQ
VLPSO\SD\KLVKRVSLWDODQGUHFRYHU\ELOOV2IFRXUVHKLVUHWULEXWLRQPLJKW
EHH[WUHPH
%XWVKHZDVRSHUDWLQJRXWVLGH$QDO\WLFD+DULVDLG 7KDWVLOOHJDO
7RXVWRPHVXUHO\%XWWKDWWRRKDVDSULFHLQVLGH$QDO\WLFD
6KHFDQWEHIRUFHGWRLGHQWLI\/DPXUN"
6KHKDVQHXUDOEORFNVILUPO\LQSODFH
'DPQ+RZDERXWDEDFNJURXQGFKHFN"
7KDWWXUQVXSPRUHWDQWDOL]LQJWUDFHV$SRVVLEOHOLQNWRWKDWRGG
ZRPDQWKH$FDGHPLF3RWHQWDWH&OHRQGUDZOHGH\HLQJ+DUL
6RSHUKDSV,PEHWUD\HGE\P\RZQNLQG3ROLWLFV
5LWXDODVVDVVLQDWLRQLVDQDQFLHQWLIUHJUHWWDEOHWUDGLWLRQ$PHWKRG
RIDKWHVWLQJDPRQJWKHSRZHUHOHPHQWVLQRXU(PSLUH
+DULJULPDFHG,PQRWH[SHUWDWWKLV
&OHRQILGJHWHGXQHDVLO\,FDQQRWGHOD\WKH+LJK&RXQFLOYRWHPRUHWKDQ
DIHZGD\V
7KHQ,PXVWGRVRPHWKLQJ
&OHRQDUFKHGDQH\HEURZ,DPQRWZLWKRXWUHVRXUFHV
3DUGRQVLUH,PXVWILJKWP\RZQEDWWOHV
7KH6DUNSUHGLFWLRQQRZWKDWZDVGDULQJ

,GLGQRWFKHFNLWZLWK\RXILUVWEXW,WKRXJKW
1RQR+DUL([FHOOHQW%XWZLOOLWZRUN"
,WLVRQO\DSUREDELOLW\VLUH%XWLWZDVWKHRQO\VWLFN,KDGKDQG\
WREHDW/DPXUNZLWK
,WKRXJKWVFLHQFH\LHOGHGFHUWDLQW\
2QO\GHDWKGRHVWKDWP\HPSHURU

7KHLQYLWDWLRQIURPWKH$FDGHPLF3RWHQWDWHVHHPHGRGGEXW+DULZHQW
DQ\ZD\7KHHPERVVHGVKHHWZLWKLWVHODERUDWHVDOXWDWLRQVFDPHIUHLJKWHG
ZLWKQXDQFHDV+DULVSURWRFRORIILFHUSXWLW
7KLVDXGLHQFHZDVLQRQHRIWKHVWUDQJHU6HFWRUV(YHQEXULHGLQOD\HUV
RIDUWLILFHPDQ\6HFWRUVRI7UDQWRUGLVSOD\HGDQRGGELRSKLOLD
+HUHLQ$UFDGLD6HFWRUH[SHQVLYHKRPHVSHUFKHGDERYHDYLHZRIDQ
LQWHULRUODNHRUEURDGILHOG0DQ\VSRUWHGWUHHVDUUDQJHGLQDUWIXOO\UDQGRP
EXQFKHVZLWKDFOHDUSUHIHUHQFHIRUWKRVHZLWKVSUHDGLQJFURZQVPDQ\
EUDQFKHVSURMHFWLQJXSZDUGDQGRXWZDUGIURPWKLFNWUXQNVGLVSOD\LQJOX[XULDQW
EXQFKHVRIVPDOOOHDYHV%DOFRQLHVWKH\ULPPHGZLWKSRWWHGVKUXEV
+DULZDONHGWKURXJKWKHVHVHHLQJWKHPWKURXJKWKHOHQVRI3DQXFRSLD,W
ZDVDVWKRXJKSHRSOHDQQRXQFHGWKURXJKWKHLUFKRLFHVWKHLUSULPHYDORULJLQV
:DVHDUO\KXPDQLW\OLNHSDQVPRUHVHFXUHLQPDUJLQDOWHUUDLQZKHUHYLVWDV
OHWWKHPVHDUFKIRUIRRGZKLOHNHHSLQJDQH\HRXWIRUHQHPLHV")UDLOZLWKRXW
FODZVRUVKDUSWHHWKWKH\PLJKWKDYHQHHGHGDTXLFNUHWUHDWLQWRWUHHVRU
ZDWHU
6LPLODUO\VWXGLHVVKRZHGWKDWVRPHSKRELDVZHUH*DOD[\ZLGH3HRSOHZKR
KDGQHYHUVHHQWKHLPDJHVQRQHWKHOHVVUHDFWHGZLWKVWDUWOHGIHDUWRKRORVRI
VSLGHUVVQDNHVZROYHVVKDUSGURSVKHDY\PDVVHVRYHUKHDG1RQHGLVSOD\HG
SKRELDVDJDLQVWPRUHUHFHQWWKUHDWVWRWKHLUOLYHVNQLYHVJXQVHOHFWULFDO
VRFNHWVIDVW FDUV
$OOWKLVKDGWRIDFWRUVRPHKRZLQWRSV\FKRKLVWRU\
1RWUDFHUVKHUHVLUWKH6SHFLDOVFDSWDLQVDLG/LWWOHKDUGWRNHHS
WUDFNWKRXJK
+DULVPLOHG7KHFDSWDLQVXIIHUHGIURPDFRPPRQ7UDQWRULDQPDODG\
VTXDVKHGSHUVSHFWLYHV+HUHLQWKHRSHQQDWLYHVZRXOGPLVWDNHGLVWDQWODUJH
REMHFWVIRUQHDUE\VPDOORQHV(YHQ+DULKDGDWRXFKRILW2Q3DQXFRSLDKH
DWILUVWPLVWRRNKHUGVRIJUD]HUVIRUUDWVFORVHDWKDQG
%\QRZ+DULKDGOHDUQHGWRORRNWKURXJKWKHSRPSDQGJORU\RIULFK
VHWWLQJV WKHFURZGVRIVHUYDQWVWKHILQHU\+HUXPLQDWHGRQKLV
SV\FKRKLVWRULFDOUHVHDUFKDVKHIROORZHGWKHSURWRFRORIILFHUDQGGLGQRW
IXOO\FRPHEDFNWRWKHUHDOZRUOGXQWLOKHVDWDFURVVIURPWKH$FDGHPLF
3RWHQWDWH
6KHVSRNHRUQDWHO\3OHDVHGRDFFHSWP\ KXPEOHRIIHULQJDFFRPSDQLHG
GHOLFDWHWUDQVOXFHQWFXSVRIVWHDPLQJJUDVVZDWHU
+HUHPHPEHUHGEHLQJLUNHGE\WKLVZRPDQDQGWKHKLJKDFDGHPLFVKHPHW
WKDWHYHQLQJ,WDOOVHHPHGVRORQJDJR
<RXZLOOQRWHWKHDURPDLVWKDWRIULSHRREDORQJIUXLW7KLVLVP\
SHUVRQDOFKRLFHDPRQJWKHVSOHQGLGJUDVVZDWHUVRIWKHZRUOG&DODILD,W
UHIOHFWVWKHKLJKHVWHHPLQZKLFK,KROGWKRVHZKRQRZJUDFHP\VLPSOH
GRPLFLOHZLWKVXFKLOOXVWULRXVSUHVHQFH
+DULKDGWRORZHUKLVKHDGLQZKDWKHKRSHGZDVDUHVSHFWIXO JHVWXUHWR
KLGHKLVJULQ7KHUHIROORZHGPRUHKLJKIORZQSKUDVHVDERXWWKHPHGLFDO
EHQHILWVRIJUDVVZDWHUUDQJLQJIURPUHOLHIRIGLJHVWLRQSUREOHPVWRUHSDLURI
EDVDOFHOOXODULQMXULHV
+HUFKLQVTXLYHUHG<RXPXVWQHHGVXFFRULQVXFKWU\LQJWLPHV
$FDGHPLFLDQ
0RVWO\,QHHGWLPHWRJHWP\ZRUNGRQH
3HUKDSV\RXZRXOGIDYRUDKHDOWK\SRUWLRQRIWKHEODFNOLFKHQPHDW",W
LVWKHILQHVWKDUYHVWHGIURPWKHIODQNVRIWKHVWHHSSHDNVRI$PEURVH

1H[WWLPHFHUWDLQO\
,WLVKRSHGIHUYHQWO\WKDWWKLVORZO\SHUVRQDJHKDGSHUKDSVEHHQRI
VPDOOVHUYLFHWRDPRVWZRUWK\DQGUHYHUHGILJXUHRIRXUWLPHRQHZKR
SHUKDSVLVRYHUVWUHVVHG"
$VWHHO\HGJHWRKHUYRLFHSXWKLPRQJXDUG
&RXOGPDGDPJHWWRWKHSRLQW"
9HU\ZHOO<RXUZLIH"6KHLVDFRPSOH[ODG\
+HWULHGWRVKRZQRWKLQJLQKLVIDFH$QG"
,ZRQGHUKRZ\RXUSURVSHFWVLQWKH+LJK&RXQFLOZRXOGIDUHLI,
UHYHDOHGKHUWUXHQDWXUH"
+DULVKHDUWVDQN7KLVKHKDGQRWDQWLFLSDWHG
%ODFNPDLOLVLW"
6XFKDFUXGHZRUG
6XFKDFUXGHDFW
+DULVDWDQGOLVWHQHGWRKHULQWULFDWHDQDO\VLVRIKRZ'RUVLGHQWLW\DV
DURERWZRXOGXQGHUPLQHKLVFDQGLGDF\$OOTXLWHWUXH
$QG\RXVSHDNIRUNQRZOHGJHIRUVFLHQFH"KHVDLGELWWHUO\
,DPDFWLQJLQWKHEHVWLQWHUHVWVRIP\FRQVWLWXHQWVVKHVDLG
EODQGO\<RXDUHDPDWKLVWDWKHRULVW<RXZRXOGEHWKHILUVWDFDGHPLFWR
UHLJQDV)LUVW0LQLVWHULQPDQ\GHFDGHV:HGRQRWWKLQN\RXZLOOUXOHZHOO
<RXUIDLOXUHZLOOFDVWVKDGRZVXSRQXVPHULWRFUDWVRQHDQGDOO
+DULEULVWOHG:KRVD\V"
2XUFRQVLGHUHGRSLQLRQ<RXDUHLPSUDFWLFDO8QZLOOLQJWRPDNHKDUG
GHFLVLRQV$OORXUSV\FKHUVDJUHHZLWKWKDWGLDJQRVLV
3V\FKHUV"+DULVQRUWHGGHULVLYHO\'HVSLWHFDOOLQJKLVWKHRU\
SV\FKRKLVWRU\KHNQHZWKHUHZDVQRJRRGPRGHORIWKHLQGLYLGXDOKXPDQ
SHUVRQDOLW\
,ZRXOGPDNHDIDUEHWWHUFDQGLGDWHMXVWIRUH[DPSLH
6RPHFDQGLGDWH<RXUHQRWHYHQOR\DOWR\RXUNLQG
7KHUH\RXKDYHLW<RXUHXQDEOHWRULVHDERYH\RXURULJLQV
$QGWKH(PSLUHKDVEHFRPHWKHZDURIDOODJDLQVWDOO
6FLHQFHDQGPDWKHPDWLFVZDVDKLJKDFKLHYHPHQWRI,PSHULDOFLYLOL]DWLRQ
EXWWR+DULVPLQGLWKDGIHZKHURHV0RVWJRRGVFLHQFHFDPHIURPEULJKW
PLQGVDWSOD\)URPPHQDQGZRPHQDEOHWRWXUQDQHOHJDQWLQVLJKWWRILQG
EHJXLOLQJWULFNVLQDUFDQHPDWWHUVGHIWDUFKLWHFWVRISUHYDLOLQJRSLQLRQ
3OD\HYHQLQWHOOHFWXDOSOD\ZDVIXQDQGWKDWZDVJRRGLQLWVRZQULJKW%XW
+DULVKHURHVZHUHWKRVHZKRVWXFNLWRXWDJDLQVWKDUGRSSRVLWLRQGURYH
WRZDUGGDXQWLQJJRDOVDFFHSWLQJSDLQDQGIDLOXUHDQGNHHSLQJRQDQ\ZD\
3HUKDSVOLNHKLVIDWKHUWKH\ZHUHWHVWLQJWKHLURZQFKDUDFWHUDVPXFKDV
WKH\ZHUHEHLQJSDUWRIWKHVXDYHVFLHQWLILFFXOWXUH
$QGZKLFKW\SHZDVKH"
7LPHWRUDLVHWKHVWDNHV
+H VWRRGEUXVKLQJDVLGHWKHERZOVZLWKDFODWWHU<RXOOKDYHP\UHSO\
VRRQ
+HVWHSSHGRQDFXSJRLQJRXWDQGVKDWWHUHGLW


9ROWDLUHVKRXWHGSURXGO\,VSHQWPXFKRIP\FDUHHUH[LOHGIRUVSHDNLQJ
7UXWKWR3RZHU,OODGPLWWRVRPHIODZVLQMXGJPHQWDVZKHQ,IDZQHGRYHU
)UHGHULFNWKH*UHDW1HFHVVLW\VKDSHVPDQQHUV,OOUHPLQG\RX,ZDV
FRXUDJHRXV\HVEXWVQREELVKWRR
>7+28*+$0$7+(0$7,&$/5(35(6(17$7,21@
><286+$5(7+($1,0$/63,5,762)<285.,1'@
>67,//@
2IFRXUVH-RDQVKRXWHGLQKLVGHIHQVH
><285.,1'$5(7+(:25672)$//9,9,)2506@

/LYLQJWKLQJV"-RDQIURZQHG%XWWKH\DUHRIKRO\RULJLQ
><285.,1',6$3(51,&,286%/(1'@
>$7(55,%/(0$55,$*(2)0(&+$1,60@
>:,7+<285%($6785*(72(;3$1'@
<RXFDQVHHRXULQQHUVWUXFWXUHVDVVXUHO\DVZH9ROWDLUHVZHOOHG
SRSSLQJZLWKHQHUJLHV3UREDEO\EHWWHU,OOYHQWXUH<RXPXVWNQRZWKDWIRU
XVFRQVFLRXVQHVVUHLJQVLWGRHVQRWJRYHUQ
>35,0,7,9($1'$:.:$5'@
>758(@
>%871277+(&$86(2)<2856,1@
6KHDQG9ROWDLUHZHUHJLDQWVQRZVHOIEDOORRQHGWRVWULGHDFURVVWKH
VLPXODWHGODQGVFDSH7KHDOLHQIRJVFOXQJWRWKHLUDQNOHV$SURXGZD\RI
VKRZLQJWKHLUFRXUDJHSHUKDSVDELWIXOORIVHOI6WLOOVKHZDVJODGVKH
KDGWKRXJKWRILW7KHVHIRJVKHOGKXPDQLW\LQFRQWHPSW$VKRZRIIRUFHZDV
XVHIXODVVKHKDGIRXQGDJDLQVWWKHYLOH(QJOLVKVHYHUDOWLPHV
9ROWDLUHVDLG,KHOG3RZHULQFRQWHPSWXVXDOO\\HW,OODGPLW,ZDV
HYHUODVWLQJO\KXQJU\IRULWWRR
>7+(6,*1$785(2)<285.,1'@
6R,DPDFRQWUDGLFWLRQ+XPDQLW\LVDURSHVWUHWFKHGEHWZHHQ
SDUDGR[HV
>:('2127),1'<285+80$1,7<025$/@
%XWZHWKH\DUH-RDQVKRXWHGGRZQDWWKHIRJ7KRXJKWKLQFRPSDUHG
ZLWKWKHPWKHIRJVFOXQJOLNHJOXHDQGILOOHGWKHYDOOH\VZLWKFRWWRQ\JXP
><28'2127.12:<2852:1+,6725<@
:HDUHRIKLVWRU\9ROWDLUHERRPHG
>7+(5(&25'6+(5(,17+(0$7+(0$7,&$/63$&(6@
>$5()$/6(@
2QHFDQQHYHUEHVXUHRIEHLQJUHDGULJKW\RXNQRZ
-RDQVDZLQ9ROWDLUHDQDQ[LHW\EDUHO\FRQFHDOHG7KRXJKWKHLURSSRQHQW
XVHGDYRLFHFRRODQGGLVSDVVLRQDWHVKHWRRIHOWWKHLQVLGLRXVWKUHDWLQLWV
FDVWRIZRUGV
9ROWDLUHZHQWRQDVLIWRSOHDVHDNLQJLQFRXUW$ELWRIKLVWRULFDO
H[DPSOH,RQFHVDZLQDFKXUFK\DUGLQ(QJODQGWKHUHWRKDLOWKHEULJKW
1HZWRQDKHDGVWRQHWKXV
(5(&7('727+(0(025<
RI-RKQ0F)DUODQH
'URZQGLQWKH:DWHURI/HLWK
%<$)(:$))(&7,21$7()5,(1'6

6R\RXVHHWKHUHFDQEHPLVWDNHVRIWUDQVODWLRQ+HOLIWHGKLV
HODERUDWHFRXUWLHUVKDWDQGPDGHDVZHHSLQJERZ7KHKDWVSOXPHGIHDWKHU
GDQFHGLQDIUHVKZLQG-RDQVDZWKDWKHZDVGLVWUDFWLQJWKHIRJZKLOHWU\LQJ
WRVXEWO\EORZLWDZD\
7KHIRJVIODVKHGRUDQJHOLJKWQLQJDQGVZHOOHGHQRUPRXVDQGSXUSOH
7KXQGHUKHDGVURVHDQGWRZHUHGDERYHWKHP
9ROWDLUHVKRZHGRQO\DQDUFKVFRUQ6KHKDGWRDGPLUHKLVJDLWDVKH
ZKLUOHGDQGFRQIURQWHGWKHJDUJDQWXDQSXUSOHFORXGPRXQWDLQ6KHUHPHPEHUHG
KRZKHKDGZD[HGRQDERXWKLVGUDPDWLFWULXPSKVKLVOHJLRQVRIDFFODLPHG
SOD\V KLVSRSXODULW\DWFRXUW$VLIWRVKRZRIIIRUKHUKHFXUOHGDOLS
LQWRDVQHHUDQGLQYHQWHGDSRHPIRUWKHPRPHQW
%LJZKRUOVKDYHOLWWOHZKRUOV
:KLFKIHHGRQWKHLUYHORFLW\
$QGOLWWOHZKRUOVKDYHOHVVHUZKRUOV
$QGVRRQWRYLVFRVLW\
7KHFORXGKXUOHGVDYDJHVKHHWVRIUDLQGRZQXSRQWKHP-RDQZDV
LQVWDQWO\GUHQFKHGDQGFKLOOHGWRWKHERQH9ROWDLUHVJORULRXVJDUEZLOWHG

+LVIDFHWXUQHGEOXHZLWKFROG
(QRXJKKHFULHG3LW\WKHSRRUZRPDQDWOHDVW
,QHHGQRSLW\-RDQZDVJHQXLQHO\RXWUDJHG$QG\RXOOQRWVKRZ
ZHDNQHVVEHIRUHWKHHQHP\OHJLRQV
+HPDQDJHGDMDXQW\VPLOH,GHIHUWRWKHJHQHUDORIP\KHDUW
><28/,9(21/<$7285:,//@
3UD\GRQRWVSDUHXVRXWRISLW\WKHQ-RDQVDLG
><28/,9(62/(/<%(&$86(21(2)<28@
>6+2:('025$/6(/)@
>7221(2)285/2:(5)2506@
-RDQZDVSX]]OHG:KR"
><28@
%HVLGHKHUPDWHULDOL]HG*DUFRQ$'0
%XWWKLVLVVXUHO\DPXOWLSO\UHPRYHGHQWLW\9ROWDLUHVQDSSHG$QGD
VHUYDQW
-RDQSDWWHG*DUFRQ$VLPXODWLRQRIDPDFKLQH"
>:(:(5(21&(2)0$&+,1(@
>$1'+$9(&20(+(5(72':(//@
>,1180(5,&$/(0%2',0(17@
)URPZKHUH"-RDQDVNHG
>$&5266$//7+(7851,1*63,5$/',6.@
)RU
>5(0(0%(5@
>381,6+0(17'(7(56%</(1',1*&5('(1&(727+5($7@
9ROWDLUHDVNHG6R\RXVDLGEHIRUH7DNLQJWKHORQJYLHZHK"%XWZKDW
GR\RXWUXO\ZDQWQRZ"
>:(722'(6&(1')5209,9,)250612:(;7,1*8,6+('@
>'2127,0$*,1(:($5()5((2)7+$7@
-RDQIHOWDKRUULEOHVXVSLFLRQ6KHZKLVSHUHG'RQRWSURYRNHLWVR,W
PLJKW
,ZRXOGNQRZWKHWUXWK:KDWGR\RXZDQW"
>5(9(1*(@


8JK0DUTFXUOHGKLVOLS
+DULVPLOHG:KHQIRRGJHWVVFDUFHWDEOHPDQQHUVFKDQJH
%XWWKLV
+H\ZHUHSD\LQ<XJRVDLGVDUGRQLFDOO\
7KHPHQXZDVH[FOXVLYHO\SVHXGRIIDOWKHODWHVWVWRSJDSLQ7UDQWRUV
IRRGFULVLV7KLVIRRGZRUNVKDGWKHZKROHUXQOLYHUVDQGNLGQH\VDQGWULSH
PDGHLQSULVWLQHYDWV1RWWKHVOLJKWHVWKLQWRIDFWXDODQLPDOWLVVXH
LQYROYHG6WLOOWKHYRLFHPHQXUHDVVXUHGWKHPLQZDUPIHPLQLQHWRQHVHYHU\
LWHPFDUULHGWKHWUXHGDQNYLVFHUDODURPDVRIWKHJXW
&DQWZHJHWVRPHGHFHQWPHDOPHDW"0DUTDVNHGLUULWDEO\
7KLVKDVKLJKHUIRRGYDOXH<XJRVDLG$QGQRERG\OOEHORRNLQIRU
XVKHUH
+DULJODQFHGDURXQG7KH\ZHUHEHKLQGDVRXQGVKLHOGEXWVWLOO
VHFXULW\ZDVHVVHQWLDO0RVWRIWKHWDEOHVLQWKHUHVWDXUDQWZHUHWDNHQE\KLV
6SHFLDOVWKHUHVWE\ZHOOGUHVVHGJHQWU\FODVV
,WVIDVKLRQDEOHWRRKHVDLGDIIDEO\<RXFDQEUDJDERXWFRPLQJ
KHUH
%UDJDIWHU,JDJ" 0DUTVQLIIHGWKHDLUZULQNOHGKLVQRVH
$OOWKHQRQFRQIRUPLVWVDUHGRLQJLW+DULVDLGEXWQRRQHJRWWKH
MRNH
,PDIXJLWLYH0DUTZKLVSHUHG3HRSOHDUHVWLOOWU\LQJWRKDQJWKRVH
-XQLQULRWVRQPH7DNLQJDELJULVNWRFRPHKHUH

:HVKDOOPDNHLWZRUWK\RXUZKLOH+DULVDLG,QHHGDMREGRQHE\
VRPHRQHRXWVLGHWKHODZ
7KDW,DP+XQJU\WRR
7KHYRLFHPHQXDVVXUHGWKHPWKDWWKHUHZHUHDVZHOOZKROHPHDOVRI
SVHXGRDQLPDOYHJHWDEOHRUWUDQVPLQHUDOLQJUHGLHQWVERLOHGIURPZLWKLQ7KH
QHZHVWIRRGLHFUD]HWKHPHQXJXVKHG2QHELWHVLQWRDILUPVKHOODQGWKHQ
YHQWXUHVLQZDUGWRDPHOORZVWHZHGLQWHULRURIOX[XULDQWLPSOLFDWLRQ
6RPHLWHPVRIIHUHGQRWPHUHIODYRUDURPDDQGWH[WXUHEXWZKDWWKH
PHQXGHPXUHO\GHVFULEHGDVPRWLOLW\7KHIHDWXUHGLWHPZDVDSLOHRIUHG
VWUDQGVZKLFKGLGQRWMXVWOLHWKHUHOLPSO\LQ\RXUPRXWKEXWVTXLUPHGDQG
ZULJJOHGHDJHUO\H[SUHVVLQJLWVORQJLQJWREHHDWHQ
<RXJX\VGRQWQHHGWRWRUWXUHPHLQWRFROODERUDWLRQ0DUTMXWWHGKLV
FKLQRXWUHPLQGLQJ+DULRIDSDQJHVWXUHXVHGE\%LJJHU
+DULFKXFNOHGDQGRUGHUHGDJXWVDPSOHU,WZDVVXUSULVLQJKRZKH
FRXOGDFFRPPRGDWHZKDWZRXOGKDYHUHYROWHGKLPRQO\ZHHNVEHIRUH:KHQWKH\
KDGRUGHUHG+DULSXWWKHGHDORQWKHWDEOHGLUHFWO\
0DUTVFRZOHG'LUHFWOLQNXS"7RWKHZKROHGDPQHGV\VWHP"
:HZDQWDQLQWHUEULGJHWRRXUSV\FKRKLVWRULFDOHTXDWLRQV\VWHP<XJR
VDLG
0DUTEOLQNHG)XOOERG\OLQN"7KDWVELJFDSDFLW\
:HNQRZLWFDQEHGRQH<XJRSUHVVHG-XVWWDNHVWKHWHFKZKLFK
\RXYHJRW
:KRVD\V"0DUTVH\HVQDUURZHG
+DULOHDQHGIRUZDUGHDUQHVWO\<XJRLQILOWUDWHG\RXUV\VWHPV
+RZG\RXGRWKDW"
*RWVRPHEXGGLHVWRKHOS<XJRVDLGDUFKO\
'DKOLWHV\RXPHDQ0DUTVDLGKRWO\<RXUNLQG
6WRS+DULVDLGVWHUQO\1RVXFKWDONKHUH7KLVLVDEXVLQHVV
SURSRVLWLRQ
0DUTSHHUHGDW+DUL<RXJRLQJWREH)LUVW0LQLVWHU"
0D\EH
,ZDQWDSDUGRQDVSDUWRIWKHGHDO2QHIRU6\E\OWRR
+DULKDWHGPDNLQJXQFHUWDLQSURPLVHVEXW'RQH
0DUTVPRXWKWLJKWHQHGEXWKHQRGGHG&RVWVSOHQW\WRR<RXJRWWKH
PRQH\"
,VWKH(PSHURUIDW"<XJRVDLG

,QSULQFLSOHWKHSURFHVVZDVVLPSOH
0DJQHWLFLQGXFWLRQORRSVWLQ\DQGVXSHUFRQGXFWLQJFRXOGPDSLQGLYLGXDO
QHXURQVLQWKHEUDLQ,QWHUDFWLYHSURJUDPVODLGEDUHWKHLQWULFDFLHVRIWKH
YLVXDOFRUWH[1HXURQDOSUREHVFRXSOHGWKHVXEMHFWQHUYRXVV\VWHPWRD
SDUDOOHOFRQVWHOODWLRQRISXUHO\GLJLWDOHYHQWV'HHSHUVWLOOWLHVIRUPHG
ZLWKHYROXWLRQVNOXGJ\WDQJOHLQWKHOLPELFV\VWHP
$VZHOOWKLVWHFKQRORJ\FRXOGXQOHDVKQHZGHILQLWLRQVRI*HQXV+RPR
%XWWKHDJHROGWDERRVDJDLQVWDUWLILFLDOLQWHOOLJHQFHVRIKLJKRUGHUKDGNHSW
WKHSURFHVVHVPDUJLQDO$VZHOOQRERG\FRQVLGHUHG+RPR'LJLWDOWREHDQHTXDO
PDQLIHVWDWLRQWR1DWXUDO0DQ
+DULNQHZDOOWKLVEXWKLVLPPHUVLRQRQ3DQXFRSLDDQDOOLHG
WHFKQRORJ\KDGWDXJKWKLPPXFK
7ZRGD\VDIWHUPHHWLQJ0DUTLQWKHUHVWDXUDQWZKLFKKDGEHHQ
VXUSULVLQJO\JRRGDQGLQWKHIRRGFULVLVKDGFRVWKLPDPRQWKVVDODU\+DUL
OD\VLOHQWDQGVODFNLQDWXEXODUUHFHSWDFOHDQGSOXQJHGLQWRSV\FKRKLVWRU\
)LUVWKHQRWLFHGWKDWKLVULJKWIRRWLWFKHGIURPWRHWRKHHO'HWDLOHG
WZLWFKHVWROGKLPRILQVWDELOLW\LQWKHSRSXODWLRQGULYHUWHUPV0XVWFRUUHFW
WKDW
+HFRQWLQXHGIDOOLQJLQWRDFRVPRVZKLFK\DZQHGEHORZ
7KLVZDVV\VWHPVSDFHDQLQILQLWHYDXOWGHILQHGE\WKHSDUDPHWHUVRI

SV\FKRKLVWRU\7KHFRPSOHWHH[SDQVHKDGWZHQW\HLJKWGLPHQVLRQV+LVQHUYRXV
V\VWHPFRXOGRQO\VHHWKLVLQVOLFHV:LWKDFRQFHSWXDOVKLIW+DULFRXOGSHHU
DORQJVHYHUDOSDUDPHWHUD[HVDQGVHHHYHQWVXQIROGDVJHRPHWULFVKDSHV
'RZQGRZQLQWRWKHHQWLUHKLVWRU\RIWKH(PSLUH
6RFLDOIRUPVURVHOLNHSHDNV7KHVHVWDEOHDOSVKDGDULVHQDV WKH(PSLUH
JUHZ%DVLQVFKXUQHGEHWZHHQWKHPRXQWDLQUDQJHRI)HXGDO)RUPV7KHVHZHUH
WKHFKDRVVLQNV
$WWKHULPRIVLPPHULQJFKDRVODNHVOD\WKHFULVLVWRSR]RQH7KLVZDVD
QRPDQVODQGEHWZHHQUHJXODUULJLGODQGVFDSHVDQGWKHVWRFKDVWLFPRUDVV
,PSHULDOKLVWRU\XQIROGHGDVKHFUXLVHGDERYHWKHVHHWKLQJODQGVFDSH
6HHQWKLVZD\PLVWDNHVDERXQGHGLQWKHHDUO\(PSLUH
3KLORVRSKHUVKDGWROGKXPDQLW\WKDWWKH\ZHUHDQLPDOVRIDOOVRUWV
SROLWLFDODQLPDOVIHHOLQJDQLPDOVVRFLDODQLPDOVSRZHUSRODUL]HGDQLPDOV
VLFNDQLPDOVPDFKLQHOLNHDQLPDOVHYHQUDWLRQDORQHV2YHUDQGRYHU
HUURQHRXVWKHRULHVRIKXPDQQDWXUH\LHOGHGIDLOHGSROLWLFDOV\VWHPV0DQ\
VLPSO\JHQHUDOL]HGIURPWKHEDVLFKXPDQIDPLO\DQGVDZWKH6WDWHDVHLWKHU
0RWKHU)LJXUHRU)DWKHU)LJXUH
0RPP\6WDWHVVWUHVVHGVXSSRUWDQGFRPIRUWRIWHQJLYLQJFUDGOHWRJUDYH
VHFXULW\WKRXJKRQO\IRUDJHQHUDWLRQRUWZRZKHQWKHH[SHQVHVFROODSVHGWKH
HFRQRP\
'DGG\6WDWHVIHDWXUHGDVWULFWFRPSHWLWLYHHFRQRP\ZLWKVWHPFRQWUROV
RYHUEHKDYLRUDQGSULYDWHOLYHV7\SLFDOO\'DGG\6WDWHVIHOOWRSHULRGLF
SHUVRQDOOLEHUDWLRQPRYHPHQWVDQGGHPDQGVIRU0RPP\6WDWHVXFFRU
6ORZO\RUGHUHPHUJHG6WDELOLW\7HQVRIPLOOLRQVRISODQHWVZHDNO\
OLQNHGE\ZRUPKROHVDQGK\SHUVKLSVIRXQGWKHLUPDQ\ZD\V6RPHFUDVKHGGRZQ
LQWR)HXGDORU0DFKRVZDPSV8VXDOO\WHFKQRORJ\HYHQWXDOO\SXOOHGWKHPRXWRI
LW
3ODQHWDU\VRFLHWLHVGLIIHUHGLQWKHLUWRSRORJLHV3ORGGLQJVRUWVGZHOOHG
IDURQWKHVWDEOHVLGH:LOGO\FUHDWLYHW\SHVFRXOGYHQWXUHVZLIWO\DFURVVWKH
WRSR]RQHVNDWHLQWRWUXHFKDRVJDWKHUZKDWWKH\QHHGHGWKRXJKKRZWKH\
NQHZWKLVZDVXQFOHDU
$VFHQWXULHVWLFNHGRQDVRFLHW\FRXOGVNLGRZQWKHHUUDWLFVORSHVRI
WKHVKLIWLQJODQGVFDSHDQGVKRRWEDFNDFURVVWKHWRSR]RQH3HUKDSVLWZRXOG
HYHQVORZDQGZHDYHILJXUHVRQWKHVWDEOHVPRRWKSODLQVRIWKHSORGGHU
VWDWHVIRUDZKLOH
0DQ\WRGD\EHOLHYHGWKDWWKHHDUO\(PSLUHKDGEHHQDIDUEHWWHUDIIDLU
VHUHQHDQGORYHO\ZLWKIHZFRQIOLFWVDQGFHUWDLQO\QLFHUSHRSOH)LQH
IHHOLQJVDQGEDGKLVWRU\'RUVKDGWROGKLPGLVPLVVLQJDOOVXFKWDON
7KLVKHVDZDQGIHOWDVKHVSHGWKURXJKWKH(DUO\(UDV%ULJKWVKLQ\
LGHDVEXLOWXSKLOOVRILQQRYDWLRQRQO\WREHVHDUHGE\ODYDIURPDQ
DGMRLQLQJYROFDQR6HHPLQJO\VWXUG\ULGJHOLQHVHURGHGLQWRODQGVOLGHV
+DULXQGHUVWRRGWKLVQRZ
:KHQWKH(PSLUHZDV\RXQJSHRSOHVHHPHGWRVHHWKHJDOD[\DVLQILQLWH
LQLWVERXQW\7KHVSLUDODUPVKHOGP\ULDGSODQHWVEDUHO\YLVLWHGWKH
*DODFWLF&HQWHUZDVSRRUO\PDSSHGEHFDXVHRILWVLQWHQVHUDGLDWLRQDQGYDVW
GDUNFORXGVKLGPXFKSURPLVHGZHDOWK
6ORZO\VORZO\WKHHQWLUHGLVNZDVPDSSHGLWVUHVRXUFHVWDOOLHG
$EODQGQHVVVHWWOHGRQWKHODQGVFDSH7KH(PSLUHKDGFKDQJHGIURP
EUDZOLQJFRQTXHURUWRFDUHIXOVWHZDUG$SV\FKRORJLFDOVKLIWXQGHUOD\LWDOO
DFRQVWULFWLQJRIWKHVHQVHRIKXPDQSXUSRVH:K\"
+HZLWQHVVHGFORXGVIRUPLQJRYHUHYHQWKHKLJKHVWVRFLDOSHDNVFXWWLQJ
RIIWKHVHQVHRIRSHQQHVVDERYHWKHP$FRPSODFHQWPXUNVHWWOHG
+DULUHPLQGHGKLPVHOIWKDWDVDSSHDOLQJDVVXFKSLFWXUHVZHUHDOO
VFLHQFHZDVPHWDSKRU$SSHDOLQJVXSHUSDQSLFWXUHVQRPRUH(OHFWULFFLUFXLWV
ZHUHOLNHZDWHUIORZVJDVPROHFXOHVEHKDYHGOLNHWLQ\HODVWLFEDOOVPRYLQJ
UDQGRPO\1RWUHDOO\EXWDVSHUPLVVLEOHSRUWUDLWVRIDZRUOGRIFRQIXVLQJ
FRPSOLFDWLRQ

$QGDIXUWKHUUXOH,VFDQQRWLPSO\RXJKW
3V\FKRKLVWRU\GLGQRWSUHGLFWZKDWVKRXOGKDSSHQEXWZKDWZRXOG
KRZHYHUWUDJLF
$QGWKHHTXDWLRQV\LHOGHGKRZEXWQRWZK\
:DVVRPHGHHSHUDJHQF\DWZRUN"
3HUKDSV+DULWKRXJKWWKLVVWXSRUZDVOLNHWKHIHHOLQJKXPDQVKDGRQFH
KDGZKHQWKH\OLYHGRQRQHORQHSODQHWDQGORRNHGORQJLQJO\DWWKHXQUHDFKDEOH
QLJKWVN\$WUDSSHGFODXVWURSKRELD
+HSXVKHGWLPHIRUZDUG<HDUVOHDSHGE\7KHODQGVFDSHEOXUUHGZLWK
PRWLRQ%XWFHUWDLQVRFLDOSHDNVUHPDLQHG6WDELOLW\
7LPHVSHGWRZDUGWKHSUHVHQWHUDV7KHDGYDQFHG(PSLUHHPHUJHGDVD
JUHDWVHHWKLQJSDQRUDPD+HIODVKHGWKURXJKWKLUWHHQGLPHQVLRQSHUVSHFWLYHV
DQGHYHU\ZKHUHIHOWRFHDQVRIFKDQJHODSDJDLQVWWKHEXWWUHVVHVRIJUDQLWH
KDUGDJHROGVRFLDOSDWWHUQV
6DUN"+HYHFWRUHGWKURXJKWKH*DOD[\VVZDUPVDQGIRXQGLWWZHOYH
WKRXVDQGOLJKW\HDUVIURP7UXH&HQWHU,WVVRFLDOPDWUL[DFFHOHUDWHG
(IIHUYHVFHQWVSDUNVVKRWDFURVVWKH6DUNLDQVRFLRYLVWDV$XQLTXHPL[
RQFHDPRQRSRO\GULYHQIHUPHQWZKLFKFUDVKHGDQGHPHUJHGUHQHZHG
7KHIORZHULQJRIWKH1HZ5HQDLVVDQFH\HVWKHUHLWFDPHDIRXQWDLQRI
H[SORGLQJYHFWRUV:KDWZRXOGFRPHQH[W"
)RUZDUGLQWRWKHQHDUIXWXUH+HFORVHXSSHGWKHVOLGLQJVWDWH
GLPHQVLRQV
7KH1HZ5HQDLVVDQFHH[SORGHGWKURXJKRXWWKHHQWLUH6DUN=RQH7KHZRUVH
FDVH\HWDOOGDPSHUVJRQH
+LVHDUOLHUDQDO\VLVWKHEDVLVRIKLVSUHGLFWLRQLIDQ\WKLQJLWKDG
EHHQRSWLPLVWLF%ODFNFKDRVZDVFRPLQJ
+HVRDUHGDERYHWKHIUHQ]LHGYLVWDV+HKDGWRGRVRPHWKLQJ1RZ
7KHUHZDVSUHFLRXVOLWWOHPDUJLQ6DUNZRXOGQRWZDLW7KH(PSLUHLWVHOI
ZDVHGJLQJQHDUHUWRFROODSVH'LVRUGHUVWDONHGWKHODQGVFDSHRI
SV\FKRKLVWRU\
<HW/DPXUNKDGWKHXSSHUKDQGRQ7UDQWRU(YHQWKH(PSHURU ZDVFKHFNHG
DQGEORFNHGE\/DPXUNVSRZHU
+DULQHHGHGDQDOO\6RPHRQHRXWVLGHWKHULJLGPDWULFHVRI,PSHULDO
RUGHU1RZ
:KR":KHUH"


9ROWDLUHIHOWFKLOO\IHDUVOLGHWKURXJKKLPOLNHDNQLIH
)RUWKHVHVWUDQJHPLQGVSK\VLFDOORFDWLRQZDVLUUHOHYDQW7KH\FRXOG
DFFHVVWKH'ZRUOGDQ\ZKHUHVLPXOWDQHRXVO\
7KH\KDGOLQNVWRRWKHUZRUOGVEXWKDGFRQFHQWUDWHGRQ7UDQWRU
+XPDQLW\GLGQRWHYHQNQRZWKH\OXUNHGKHUHLQ0HVKVSDFH
1RZKHNQHZZK\'LWWRVDQGRWKHUFRSLHVZHUHQHFHVVDU\7KHIRJVKDG
GHYRXUHGKXPDQVLPXODWLRQVZKLFKYHQWXUHGLQWRWKH0HVK
2YHUKRZPDQ\KXQGUHGFHQWXULHVKDGUHQHJDGHSURJUDPPHUVGDUHGWR
YLRODWHWKHWDERRVFUHDWLQJDUWLILFLDOPLQGVRQO\WRKDYHWKHPWRUWXUHGDQG
PXUGHUHGLQWKHVHQXPHULFDOYDXOWV"
'HVSHUDWHKHDVVXPHGWKHUROHKHKDGVWUXFNVRRIWHQLQWKHIDVKLRQDEOH
SDUORUVRI3DULVDUFKVDYDQW
6XUHO\VLUVLWLVEHFDXVHWKHUHLVQRVLPSOHSHUVRQLQVLGHRXUKHDGV
WRPDNHXVGRWKHWKLQJVZHZDQWRUHYHQRQHVWRPDNHXVZDQWWRZDQWWKDW
ZHEXLOGWKHJUHDWP\WK7KHVWRU\WKDWZHUHLQVLGHRXUVHOYHV
>:($5(0$'(',))(5(17/<@
>7+28*+758(@
>:(6+$5($',*,7$/5(35(6(17$7,21@
>:,7+<28@

>$66$66,16@
&UXHOZRUGV +HIHOWH[SRVHGKHUHFRZHULQJZLWK-RDQEHQHDWKWKH
DQJU\SXUSOHVRIDQLPPHQVHIRJWKXQGHUKHDG
7KHDOLHQIRJVKDGSXWDVWRSWRKLVIRROLVKXUJHWRDOZD\VJURZ
KLPVHOIWRORRPRYHUWKHP+HFRXOGQRWPRUSKKLPVHOIDWDOOQRZ
-RDQFODQNHGDURXQGLQKHUDUPRUH\HVVPROGHULQJ+RZFDQZHHYHQ
VSHDNZLWKVXFKGHPRQV"
9ROWDLUHFRQVLGHUHG6XUHO\ZHGRVKDUHFRPPRQJURXQGZLWKWKHPDV
GLFWDWHGE\DVLPSOHIDFWDSSDUHQWWRDOOPLQGV
>7+$7$1<180%(5(1-2<6$81,48(5(35(6(17$7,21@
>21/<,1%$6(@
4XLWH+RZWRVWDOOWKHP"7R-RDQVSX]]OHGJODQFHKHVKRWDQ
H[SODQDWLRQ7KHQXPEHURIGD\VLQWKH\HDUP\ORYH
 RULQEDVHO2OO2OO2O
1XPHURORJ\LVWKHGHYLOVZRUNVKHVDLGVRXUO\
(YHQ\RXU6DWDQZDVDQDQJHO$QGVXUHO\WKLVUHPDUNDEOHWKHRUHPLV
UDYLVKLQJ(YHU\SRVLWLYHLQWHJHULVDVXPRIGLVWLQFWSRZHUVRIWZR7KLVLV
XQWUXHRIDQ\EDVHRWKHUWKDQWZRZKLFKLVZK\RXUDKIULHQGVKHUHFDQ
RSHUDWHLQDFRPSXWDWLRQDOVSDFHGHVLJQHGE\KXPDQV&RUUHFW"
>9(5<9,9,)2502)<2872&/$,0&5(',7@
>)257+(2%9,286@
7KHXQLYHUVDO\RXPHDQ,QZLULQJWKHYDFLOODWLRQEHWZHHQRQHDQG
]HURLQEDVHWZRQRWDWLRQEHFRPHVDVLPSOHRQRURII7KXVWZRLVWKH
XQLYHUVDOHQFRGLQJPHWKRGDQGZH PD\GH[WHURXVO\VSHDNZLWKRXUDKKRVWV
:HDUHEXWQXPEHUV'HVSDLUFORXGLQJ-RDQVH\HV0\VZRUGFDQQRWFXW
WKHVHEHLQJVEHFDXVHZHKDYHQRVRXOV2UFRQVFLHQFHRUHYHQ\RXLPSO\
PHUHFRQVFLRXVQHVV
$FFXVHGRIGHQ\LQJFRQVFLRXVQHVV,DPQRWFRQVFLRXVRIKDYLQJGRQH
VR
><287:2&216&,286',*,7$/9,9,)25060$.(3266,%/(@
><28586(728672&219(<2857(5062)6(77/(0(17@
>727+(758(6/$8*+7(5(56@
6HWWOHPHQW"-RDQDVNHG
>:(+2/'7+,6&(175$/:25/'2)75$1725,17+5$//@
>:(:,6+72(1'7+(35(<,1*2)/,)(8321/,)(@
7KHWLNWRNUHYROW"7KHLUYLUXV"7KHLUWDONRIQRWOHWWLQJSHRSOHHDW
SURSHUIRRG"-RDQVKRWEDFN
<RXDUHWKHFDXVH\HV"
6WDUWOHG9ROWDLUHVDZWHQGULOVVXGGHQO\VSUD\LQJLQWRWKHDLUIURP
-RDQ0\ORYH\RXKDYHJURZQ\RXURZQSDWWHUQVHHNLQJZHDYH
6KHVZLSHGDWWKHERLOLQJWKXQGHUKHDG7KH\OLHEHKLQG*DUFRQV
FRUUXSWLRQ
>:(+$9(*$7+(5('285675(1*7+6+(5(@
>,1285(1(0<6/$,5@
><28532:(5)8/',6785%$1&(2)285+,',1*3/$&(6@
>)25&(68672$&7$*$,1677+26(:(+$7($1')($5@
>$1'623527(&7<28)5207+(0$11,0:+26($5&+(6@
>627+$772*(7+(5:(0$<'(6752<'$1((/2)2/'@
7KHVLPWLNWRNKDGEHHQVWDQGLQJLQHUW$EUXSWO\DWPHQWLRQRILWVQDPH
LWVDLG7LVLPPRUDOIRUFDUERQDQJHOVWRIHHGXSRQFDUERQ7LNWRNVPXVW
HGXFDWHKXPDQLW\WRDKLJKHUPRUDOSODQH2XUGLJLWDOVXSHULRUVKDYHVR
FRPPDQGHG
0RUDOLVWVDUHVRWHGLRXV9ROWDLUHVDLG
>:(+$9(,16,18$7('2856(/9(6'((3/<@
>,1727+(:25/'9,(:62)7+(7,.72.6@
>127(7+(&217(037$1''(5,6,21,17+$71$0(@
>29(5/21*&(1785,(6@

>$6:(':(//(',17+(6(',*,7$/,17(567,&(6@
>%87<285,17586,2112:75,**(56285*$0%/(@
>72675,.($7285$1&,(17)2(@
>7+(0$1:+2,6127'$1((/@
7KHVHDOLHQIRJVEHKDYHOLNHPROHV9ROWDLUHVDLGNQRZQRQO\E\
WKHLUXSKHDYDOV
>722%(1,*+7('<28$5(@
>7263($.2)025$/,7<@
>:+(1<285.,1'&2//$%25$7(',17+((;(&87,21@
>2)$//7+(63,5$/5($/0@
9ROWDLUHVLJKHG7KHPRVWVDYDJHFRQWURYHUVLHVDUHDERXWPDWWHUVIRU
ZKLFKWKHUHLVQRJRRGHYLGHQFHHLWKHUZD\$VIRUDPDQHDWLQJDPHDOVXUHO\
QRVLQUHVLGHV"
>75,)/(:,7+86$1'<286+$//3(5,6+@
>,12855(9(1*(@


+DULWRRNDGHHSEUHDWKDQGSUHSDUHGWRHQWHUVLPVSDFHDJDLQ
+HVDWXSLQWKHHQFDVLQJFDSVXOHDQGVHWWOHGWKHQHXUDOSLFNXSPDWV
PRUHFRPIRUWDEO\DURXQGKLVQHFN7KURXJKDWUDQVSDUHQWZDOOKHVDZWHDPVRI
VSHFLDOLVWVZRUNLQJVWHDGLO\7KH\KDGWRVXVWDLQWKHPDSEHWZHHQ+DULV
PHQWDOSURFHVVHVDQGWKH0HVKLWVHOI
+HVLJKHG$QGWR WKLQN,VWDUWHGRXWWRH[SODLQDOOKLVWRU\7UDQWRU
LVKDUGHQRXJK
'RUVSUHVVHGDZHWDEVRUEHUWRKLVIRUHKHDG<RXOOGRLW
+HFKXFNOHGGU\O\3HRSOHORRNRUGHUO\DQGXQGHUVWDQGDEOHIURPD
GLVWDQFHDQGRQO\WKDWZD\&ORVHXSLVDOZD\VPHVV\
<RXURZQOLIHLVDOZD\VFORVHXS2WKHUSHRSOHORRNPHWKRGLFDODQGWLG\
RQO\EHFDXVHWKH\UHDWORQJUDQJH
+HNLVVHGKHUVXGGHQO\,SUHIHUFORVHXS
6KHUHWXUQHGWKHNLVVZLWKIRUFH,DPZRUNLQJZLWK'DQHHORQ
LQILOWUDWLQJ/DPXUNVUDQNV
'DQJHURXV
+HLVXVLQJRXUNLQG
7KHUHZHUHIHZKXPDQLIRUPURERWV+DULNQHZ&DQKHVSDUHWKHP"
6RPHZHUHSODQWHGGHFDGHVDJR
+DULQRGGHG*RRG5'DQHHO6KRXOGYHEHHQDSROLWLFLDQ
+HZDV)LUVW0LQLVWHU
$SSRLQWHGQRWHOHFWHG
6KHVWXGLHGKLVIDFHLQWHQWO\<RXZDQWWREH)LUVW0LQLVWHUQRZ
GRQW\RX"
3DQXFRSLDFKDQJHGWKDW\HV
'DQHHOVD\VWKDWKHKDVHQRXJKWREORFN/DPXUNLIWKHYRWLQJDYHUDJHV
LQWKH+LJK&RXQFLOJRZHOO
+DULVQRUWHG6WDWLVWLFVUHTXLUHFDUHORYH5HPHPEHUWKHFODVVLFMRNH
DERXWWKUHHVWDWLVWLFLDQVZKRZHQWKXQWLQJGXFNV
:KLFKDUH"
$JDPHELUGNQRZQRQVRPHZRUOGV7KHILUVWVWDWLVWLFLDQVKRWDPHWHU
KLJKWKHVHFRQGDPHWHUORZ:KHQWKLVKDSSHQHGWKHWKLUGVWDWLVWLFLDQ
FULHG2QDYHUDJHZHKLWLW
7KHOLYLQJWUHHRIHYHQWVSDFH
+DULZDWFKHGLWFUDFNOHDQGZRUNWKURXJKWKHPDWULFHV+HUHFDOOHG
VRPHRQHVD\LQJWKDWVWUDLJKWOLQHVGLGQRWH[LVWLQQDWXUH+HUHZDVWKH
LQYHUVLRQ,QILQLWHO\XQIROGLQJLQWULFDF\QHYHUIXOO\VWUDLJKWQHYHUVLPSO\
FXUYHG

7KHHQWLUHO\DUWLILFLDO0HVKIORZHUHGLQSDWWHUQVRQHVDZHYHU\ZKHUH,Q
FUDFNOLQJHOHFWULFDOGLVFKDUJHVDOLYHZLWKZULWKLQJIRUNV,QSDOHEOXH
IURVWIORZHUVRIFU\VWDOJURZWK,QWKHEURQFKLRIKXPDQOXQJV,QJUDSKHG
PDUNHWIOXFWXDWLRQV,QZKRUOVRIVWUHDPVSOXQJLQJHYHUIRUZDUG
6XFKKDUPRQ\RIODUJHZLWKVPDOOZDVEHDXW\LWVHOIHYHQZKHQSURFHVVHG
E\WKHVNHSWLFDOH\HRIVFLHQFH
+HIHOW7UDQWRUV0HVK+LVFKHVWZDVDPDS6WUHHOLQJ6HFWRURYHUKLV
ULJKWQLSSOH$QDO\WLFDRYHUWKHOHIW8VLQJQHXUDOSODVWLFLW\WKHSULPDU\
VHQVRU\DUHDVRIKLVFRUWH[UHDGWKH0HVKWKURXJKKLVVNLQ
%XWLWZDVQRWOLNHUHDGLQJDWDOO1RIODWGDWDKHUH
)DUEHWWHUIRUDSDQGHULYHGVSHFLHVWRWDNHLQWKHZRUOGWKURXJKLWV
HYROYHGZKROHQHXUDOEHG0RUHIXQWRR
/LNHWKHSV\FKRKLVWRULFDOHTXDWLRQVWKH0HVKZDV1GLPHQVLRQDO$QG
HYHQWKHQXPEHU1FKDQJHGZLWKWLPHDVSDUDPHWHUVVKLIWHGLQDQGRXWRI
DSSOLFDWLRQ
7KHUHZDVRQO\RQHZD\WRPDNHVHQVHRIWKLVLQWKHQDUURZKXPDQ
VHQVRULXP(YHU\VHFRQGDIUHVKGLPHQVLRQVKHDUHGLQRYHUDQROGHUGLPHQVLRQ
)UHH]HIUDPHGHDFKLQVWDQWORRNHGOLNHDULGLFXORXVO\FRPSOLFDWHGDEVWUDFW
VFXOSWXUHUXQQLQJRQRYHUGULYH
:DWFKDQ\RQHPRPHQWWRRKDUGDQG\RXJRWDODQFLQJKHDGDFKHPRWLRQ
VLFNQHVVDQG]HURXQGHUVWDQGLQJ:DWFKLWOLNHDQHQWHUWDLQPHQWQRWDQ
REMHFWRIVWXG\DQGLQWLPHFDPHDQH[WHQGHGSHUFHSWLRQLQWHJUDWHGE\WKH
ORQJVXIIHULQJVXEFRQVFLRXV,QWLPH
+DUL6HOGRQEHVWURGHWKHZRUOG
7KHLPPHGLDF\KHKDGIHOWZKLOHEHLQJ,SDQQRZUHWXUQHGHQKDQFHGDORQJ
SHUVSHFWLYHVKHFRXOGQRWQDPH+HWLQJOHGZLWKWRWDOLPPHUVLRQ
+HVWDPSHGDQGPDUFKHGDFURVVWKHPXGG\ILHOGRIFKDRWLF0HVK
LQWHUDFWLRQV+LVERRWKHHOVOHIWGHHSVFDUV7KHVHKHDOHGLPPHGLDWHO\
VXESURJUDPVDWZRUNOLNHFHOOXODUUHSDLU
$ODQGVFDSHRSHQHGOLNHWKHZHOFRPHRIDPRWKHUVODS
$OUHDG\KHKDGXVHGSV\FKRKLVWRU\WRSRVWGLFWSDQWULEDOPRYHPHQWV
EHKDYLRURXWFRPHV+DULKDGJHQHUDOL]HGWKLVWRWKHILWQHVVHFRQRPLFVRFLDO
WRSRORJ\RI1VSDFHODQGVFDSHV1RZKHDSSOLHGLWWRWKH0HVK
)UDFWDOWHQWDFOHVVSUHDGWKURXJKWKHQHWZRUNVZLWKEOLQGLQJVSHHG
SHQHWUDWLQJ7UDQWRUVGLJLWDOZRUOG\DZQHGDSODQHWDU\VSLGHUZHEZLWK
VRPHWKLQJEURRGLQJDQGVZROOHQDWLWVFHQWHU
7UDQWRUVHOHFWULFMXQJOHZRUNHGZLWKSULFNO\OLJKWEHORZKLP6RPHKRZ
LWZDVEHQHDWKWKHSDQRUDPDVKHWUDYHUVHG)URPDGLVWDQFHWKHIRUW\ELOOLRQ
OLYHVZHUHOLNHDFDUQLYDOQHRQEULJKWRQWKHKRUL]RQDPLGD EODFNFRRO
GHVHUWWKHFRORVVDOQLJKWRIWKH*DOD[\LWVHOI
+DULVWURGHDFURVVWKHWRUWXUHGODQGVFDSHRIVWRUPDQGUXLQWRZDUGD
FRORVVDOWKXQGHUKHDG7ZRWLQ\KXPDQVVWRRGEHORZLW+DULVWRRSHGDQGSLFNHG
WKHPXS
<RXWRRN\RXUWLPHWKHOLWWOHPDQFDOOHG,ZDLWHGOHVVIRUWKH.LQJ
RI)UDQFH
2XUGHOLYHUHU'LG6DLQW0LFKDHOVHQG\RX"FDOOHGWKHVPDOO-RDQ2K
\HVGREHZDUHWKHFORXGV
0RUHVWRWKHSRLQWKHUHWKHPDQVDLGVHQW
+DULVWRRGIUR]HQZKLOHDQHQJRUJHGFKXQNRI
GDWDOHDUQLQJKLVWRU\ZLVGRPVHHSHGWKURXJKKLP3DQWLQJKHVSHGKLPVHOIWR
KLVPD[7KHJORZHULQJFXPXOXVFUHDWXUH-RDQDQG9ROWDLUHDOOQRZVORZ
VWHSSHG+HFRXOGVHHLQGLYLGXDOHYHQWZDYHVZDVKLQJWKURXJKWKHLUVLPV
7KH\ZHUHGLVSHUVHGPLQGVKRSSLQJSRUWLRQVRIWKHPVHOYHVHQGOHVVO\
DURXQG7UDQWRU&OLFNLQJFODFNLQJ]LJ]DJFRPSXWDWLRQV:LWKWKHUHVRXUFHVRI
DIXOOEUDLQUXQQLQJLQDFHQWUDOORFDWLRQKLVELOOLRQVRIPLFURHIILFLHQFLHV
DGGHGXS
<RXNQRZ7UDQWRU-RDQGURQHG8VHWKDWDJDLQVWWKHP

+HEOLQNHGDQGNQHZ
6WUHDPVRIUDZVTXHH]HGUHFROOHFWLRQVSXQWKURXJKKLP0HPRULHVKH
FRXOGQRWFODLPEXWZKLFKLQVWUXFWHGKLPLQVWDQWO\UHYLHZLQJDOOWKDWKDG
WUDQVSLUHG
+LVVSHHGDQGVXSSOHJUDFHIHOWZRQGHUIXO+HZDVOLNHDQ LFHVNDWHU
]RRPLQJRYHUWKHZUHFNHGSODLQDVWKHRWKHUVOXPEHUHGOLNHWKLFNKHDGHG
EHDVWV
$QGKHVDZZK\

3ODVWHUKRORVFUHHQVDJDLQVWDPRXQWDLQDIXOONLORPHWHUKLJKFRYHULQJLW
XQWLOLWJOLWWHUVZLWKDKDOIPLOOLRQGDQFLQJLPDJHV(DFKKRORXVHG DTXDUWHU
RIDPLOOLRQSL[HOVWRVKDSHLWVLPDJHVRWKHDUUD\PXVWHUVLPPHQVH
UHSUHVHQWDWLRQDOSRZHU
1RZFRPSUHVVWKRVHVFUHHQVRQDVKHHWRIDOXPLQXPIRLODPLOOLPHWHU
WKLFN&UXPSOHLW6WXIILWLQWRDJUDSHIUXLW7KDWLVWKHEUDLQDKXQGUHG
ELOOLRQQHXURQVILULQJDWYDU\LQJLQWHQVLWLHV1DWXUHKDGDFFRPSOLVKHGWKDW
PLUDFOHDQGQRZPDFKLQHVODERUHGWRHFKRLW

7KHVTXLUWRILQVLJKWFDPHWRKLPGLUHFWO\IURPVRPHKLGGHQ
FROODERUDWLRQRIKLPVHOIZLWKWKH0HVK,QIRUPDWLRQODVKHGXSIURPGR]HQVRI
OLEUDULHVDQGPHUJHGZLWKDXGLEOHVQDSV
+HNQHZDQGIHOWLQWKHVDPHLQVWDQWRIFRPSUHKHQVLRQ'DWDDVGHVLUH
6WDJJHULQJKHVSXQOLJKWKHDGHGDQGIDFHGWKHDQJU\FORXGV7KH\
SUHVVHGLQOLNHEX]]LQJYLUXOHQWEHHV
+HFDVWDPD]HGH\HVDWWKHWKXQGHUKHDGZKLFKODVKHGEXUQWRUDQJH
OLJKWQLQJDWKLPIU\LQJWKHDLU
7KHVWLQJGRXEOHGKLPRYHU
7KDWVDOOWKH\FDQGRIRUWKHPRPHQWWKHGZDUI9ROWDLUH
FDOOHG
6HHPVHQRXJK+DULJDVSHG
7RJHWKHUZHFDQGREDWWOH -RDQVKRXWHG
+DULVWDJJHUHG&RQYXOVLRQVZUHQFKHGKLVPXVFOHV+HGHYRWHGDOOKLV
DWWHQWLRQWRPDVWHULQJWKHVKRRWLQJVSDVPV
7KLVVHUYHGWRVSHHGWKHVLPZRUOGUHODWLYHWRKLP9ROWDLUHVSRNH
QRUPDOO\,VXVSHFWKHFDPHSXUVXLQJDVSRWRIKHOSKLPVHOI
:HILJKWWKHJUDQGDQGKRO\EDWWOHKHUH-RDQLQVLVWHG$OOHOVHPXVW
JLYHZD\
+DULUDVSHG'LSORPDF\"
-RDQEULGOHG1HJRWLDWH":KDW":LWKHQHPLHVYLOHDQG
+HKDVDSRLQW9ROWDLUHPXUPXUHGMXGLFLRXVO\
<RXUH[SHULHQFHSKLORVRSKHUIURPPRUHWXUEXOHQWWLPHVVKRXOGSURYH
XVHIXOKHUH+DULFRXJKHGRXW
$K([SHULHQFHPXFKRYHUYDOXHG,I,FRXOGEXWOLYHP\OLIHRYHU
DJDLQ,ZRXOGQRGRXEWPDNHWKHVDPHPLVWDNHVEXWVRRQHU
+DULVDLG,I,NQHZZKDWWKLVVWRUPZDQWHG
><2859$5,(7<2)9,9,)250@
>,612728535,0$5<$,0@
<RXFHUWDLQO\WRUWXUHXVHQRXJK9ROWDLUHFRXQWHUHG
+DULWRRNWKHWLQ\PDQLQKDQGDQGOLIWHGKLP$WRUQDGRGHVFHQGHGGDUN
DQGVZLUOLQJZLWKUXEEOHUXLQHGVOLYHUVRIWKH0HVKKHVDZGHYRXUHG+H
KHOG9ROWDLUHWRZDUGWKHVXFNLQJVSRXW
7KHF\FORQHEDWWHUHGWKHPDOOZLWKKDPPHULQJJULW,W\RZOHGZLWK
EDQVKHHHQHUJ\VRORXG+DULKDGWRVKRXW<RXZHUHWKHDSRVWOHRIUHDVRQ
WRTXRWH\RXURZQLQWHULRUPHPRULHV5HDVRQZLWKWKHP
,PDNHQRVHQVHRIWKHLUIUDFWXUHGWDON:KDWLVWKLVRIRWKHU
YLYLIRUPV"7KHUHLV0DQDQG0DQDORQH
7KH/RUGKDVVRRUGDLQHGHYHQLQWKLV3XUJDWRU\-RDQDJUHHG

+DULVDLGJULPO\JXHVVLQJZKDWZDVFRPLQJ$OZD\VEHTXLFNVHOGRPEH
FHUWDLQ


,QHHGWRVHH'DQHHO+DULLQVLVWHG+HIHOWDELWEOXUU\IURPKLVUDZ
LQWHUIDFHZLWKWKHVSUDZOLQJGL]]\LQJ0HVK%XWWKHUHZDVOLWWOHWLPH1RZ
'RUVVKRRNKHUKHDG)DUWRRGDQJHURXVSDUWLFXODUO\ZLWKWKHWLNWRN
FULVLVVR
,FDQ VROYHWKDW*HWKLP
,PQRWVXUHKRZWR
,ORYH\RXEXW\RXUHDWHUULEOHOLDU
'DQHHOZDVZHDULQJDZRUNPDQVSXOORYHUDQGORRNLQJTXLWHXQFRPIRUWDEOH
ZKHQ+DULPHWKLPLQDEURDGEXV\SOD]D
:KHUHDUH\RXU6SHFLDOV"
$OODURXQGXVGUHVVHGPXFKDV\RXDUH
7KLVPDGH'DQHHOHYHQPRUHXQHDV\+DULUHDOL]HGWKDWWKLVPRVWDGYDQFHG
RIURERWIRUPVVXIIHUHGIURPVRPHHWHUQDOKXPDQOLPLWDWLRQV:LWKIDFLDO
H[SUHVVLRQVDFWLYDWHGHYHQDSRVLWURQLFEUDLQFRXOGQRWVHSDUDWHO\ FRQWURO
WKHVXEWOHWLHVRIOLSVDQGH\HVZKLOHH[SHULHQFLQJGLVFRQQHFWHGHPRWLRQV$QG
LQSXEOLF'DQHHOGLGQRWGDUHOHWKLVVXESURJUDPVODSVHDQGKLVIDFHJREODQN
7KH\KDYHDVRQLFZDOOXS"
+DULQRGGHGWRWKHFDSWDLQZKRZDVSXVKLQJDEURRPQHDUE\'DQHHOV
ZRUGVVHHPHGWRFRPHWKURXJKDEODQNHW,GRQRWOLNHWRH[SRVHXVWKLVZD\
.QRWVRI6SHFLDOVDVWXWHO\GHIOHFWHGSDVVHUVE\VRWKDWQRQHQRWLFHGWKH
VRQLFEXEEOH+DULKDGWRDGPLUHWKHPDVWHUO\PHWKRGWKH(PSLUHFRXOGVWLOO
GRVRPHWKLQJV H[SHUWO\0DWWHUVDUHZRUVHWKDQHYHQ\RXLPDJLQH
<RXUUHTXHVWWRSURYLGHPRPHQWWRPRPHQWORFDWLRQGDWDRI/DPXUNV
SHRSOHWKLVFRXOGH[SRVHP\DJHQWVLQVLGHWKH/DPXUNQHWZRUN
7KHUHVQRRWKHUZD\+DULVDLGVKDUSO\,OOOHDYHWR\RXWUDFNLQJ
WKHULJKWILJXUHV
7KH\PXVWEHLQFDSDFLWDWHG"
)RUWKHUHVWRIWKHFULVLV
:KLFKFULVLV"'DQHHOVIDFHZUHQFKHGLQWRDJULPDFHWKHQZHQWEODQN
+HKDGFXWWKHFRQQHFWLRQV
7KHWLNWRNV/DPXUNVPRYHV$ELWRIEODFNPDLOIRUVSLFH6DUN7DNH
\RXUSLFN2KDQGDVSHFWVRIWKH0HVK,OOGHVFULEHODWHU
<RXZLOOIRUFHDSUHGLFWDEOHSDWWHUQRQWKH/DPXUNIDFWLRQV"+RZ"
:LWKDPDQHXYHU,LPDJLQH\RXUDJHQWVZLOOEHDEOHWRSUHGLFW
SRVLWLRQVRIVRPHSULQFLSDOVLQFOXGLQJ/DPXUNKLPVHOIDWWKDWWLPH
:KDWPDQHXYHU"
,ZLOOVHQGDVLJQDOZKHQLWLVDERXWWRWUDQVSLUH
<RXMHVWZLWKPH'DQHHOVDLGGDUNO\$QGWKHRWKHUUHTXHVWWR
HOLPLQDWH/DPXUNKLPVHOI
&KRRVH\RXUPHWKRG,VKDOOFKRRVHPLQH
,FDQGRWKDWWUXH$QDSSOLFDWLRQRIWKH=HURWK/DZ'DQHHOSDXVHG
IDFHVODFNLQKLJKFDOFXODWLRQPRGH0\PHWKRGZLOOWDNHILYHPLQXWHVRI
SUHSDUDWLRQDWWKHVLWHZHFKRRVHWREULQJRIIWKHHIIHFW
*RRGHQRXJK-XVWEHVXUH\RXUURERWVNHHSWKHOHDGLQJ/DPXUNLDQVZHOO
VSRWWHGDQGWKHGDWDIORZLQJWKURXJK'RUV
7HOOPHQRZ
$QGVSRLOWKHDQWLFLSDWLRQ"
+DUL\RXPXVW
2QO\LI\RXFDQEHDEVROXWHO\VXUHWKHUHZLOOEHQROHDNV
1RWKLQJLVXWWHUO\FHUWDLQ
7KHQZHKDYHIUHHZLOOQR"2UDWOHDVW,GR+DULIHOWDQXQIDPLOLDU

]HVW7RDFWWKDWJDYHDNLQGRIIUHHGRPWRR
7KRXJK'DQHHOVIDFHVKRZHGQRWKLQJKLVERG\ODQJXDJHVSRNHRIFDXWLRQ
KLVOHJVFURVVLQJDKDQGWRXFKLQJKLVIDFH,QHHGVRPHDVVXUDQFHWKDW\RX
IXOO\XQGHUVWDQGWKHVLWXDWLRQ
+DULODXJKHG+HKDGQHYHUGRQHWKDWLQWKHVROHPQSUHVHQFHRI'DQHHO
,WIHOWOLNHDOLEHUDWLRQ


+DULZDLWHGLQWKHDQWHFKDPEHURIWKH+LJK&RXQFLO+HFRXOGVHHWKH
JUHDWERZOWKURXJKWUDQVSDUHQWRQHZD\ZDOOV
7KHGHOHJDWHVFKDWWHUHGDQ[LRXVO\7KHVHPHQDQGZRPHQLQWKHLUIRUPDO
SDQWDORRQVZHUHSODLQO\ZRUULHG<HWWKH\VHWWKHIDWHVRIWULOOLRQVRIOLYHV
RIVWDUVDQGVSLUDODUPV
(YHQ7UDQWRUZDVEDIIOLQJLQLWVVKHHUVL]H2IFRXUVH7UDQWRUPLUURUHG
WKHHQWLUH*DOD[\LQLWVIDFWLRQVDQGHWKQLFLWLHV%RWKWKH(PSLUHDQGWKLV
SODQHWKDGLQWULFDWHFRQQHFWLRQVPHDQLQJOHVVFRLQFLGHQFHVUDQGRP
MX[WDSRVLWLRQVVHQVLWLYHGHSHQGHQFLHV%RWKFOHDUO\H[WHQGHGEH\RQGWKH
&RPSOH[LW\+RUL]RQRIDQ\SHUVRQRUFRPSXWHU
3HRSOHFRQIURQWLQJEHZLOGHULQJFRPSOH[LW\WHQGWRILQGWKHLU
VDWXUDWLRQOHYHO7KH\PDVWHUWKHHDV\FRQQHFWLRQVXVHORFDOOLQNVDQGUXOHV
RIWKXPE7KHVHWKH\SXVKXQWLOWKH\PHHWDZDOORIFRPSOH[LW\WRRWKLFNDQG
KLJKDQGKDUGWRFOLPE6RWKH\VWDOO7KH\JREDFNWRSDQOLNHPRGHV7KH\
JRVVLSFRQVXOWDQGILQDOO\JDPEOH
7KH+LJK&RXQFLOZDVDEX]]DWDFXVSSRLQW$QHZDWWUDFWRULQWKH
FKDRVFRXOGOXUHWKHPLQWRDQHZRUELW1RZZDVWKHWLPHWRVKRZWKDWSDWK 2U
VRVDLGKLVLQWXLWLRQVKDUSHQHGRQ3DQXFRSLD
$QGDIWHUWKDWKHWROGKLPVHOIKHZRXOGJHWEDFNWRWKHSUREOHPRI
PRGHOLQJWKH(PSLUH
,GRKRSH\RXNQRZZKDW\RXUHGRLQJ&OHRQVDLGEXVWOLQJLQ+LV
FHUHPRQLDOFDSHHQYHORSHGKLPLQVFDUOHWDQGKLVSOXPHGKDWZDVDWXUTXRLVH
IRXQWDLQ+DULVXSSUHVVHGDFKXFNOH+HZRXOGQHYHUJHWXVHGWRKLJKIRUPDO
GUHVV
,DPKDSS\WKDW,FDQDWOHDVWDSSHDULQP\DFDGHPLFUREHVVLUH
$QGGDPQHGOXFN\\RXDUH1HUYRXV"
+DULZDVVXUSULVHGWRILQGWKDWKHIHOWQRWHQVLRQDWDOOHVSHFLDOO\
FRQVLGHULQJWKDWDWKLVSUHYLRXVDSSHDUDQFHKHUHKHKDGYHU\QHDUO\EHHQ
DVVDVVLQDWHG1RVLUH
,DOZD\VFRQWHPSODWHDJUHDWVRRWKLQJZRUNRIDUWEHIRUHVXFK
SHUIRUPDQFHVDVWKLV&OHRQZDYHGKLVKDQGDQGDQHQWLUHZDOORIWKH
DQWHFKDPEHUILOOHGZLWKOLJKW
,WSRUWUD\HGDFODVVLFWKHPHRIWKH7UDQWRULDQ6FKRRO)UXLW'HYRXUHG
IURPWKHGHILQLWLYH%HWWL8NWRQLDVHTXHQFH,WVKRZHGDWRPDWREHLQJHDWHQ
ILUVWE\FDWHUSLOODUV7KHQSUD\LQJPDQWLVHVIHDVWLQJXSRQWKHFDWHUSLOODUV
)LQDOO\WDUDQWXODVDQGIURJVFKHZLQJWKHPDQWLVHV$ODWHU8NWRQLDZRUN
&KLOG&RQVXPSWLRQEHJDQZLWKUDWVJLYLQJELUWK7KHEDELHVWKHQZHUHFDXJKW
DQGHDWHQE\YDULRXVSUHGDWRUVVRPHTXLWHODUJH
+DULNQHZWKHWKHRU\$OOWKLVKDGHPHUJHGIURPWKHJURZLQJFRQYLFWLRQ
RI7UDQWRULDQVWKDWWKHZLOGZDVDQXJO\SODFHYLROHQWDQGZLWKRXWPHDQLQJ
2QO\LQFLWLHVGLGRUGHUDQGWUXHKXPDQLW\SUHYDLO0RVW6HFWRUVKDGGLHWV
VWURQJLQGLVJXLVHGQDWXUDOIRGGHU1RZWKHWLNWRNUHEHOOLRQPDGHHYHQWKDW
GLIILFXOW
:HYHKDGWRJRQHDUO\HQWLUHO\WRV\QWKHWLFIRRGV&OHRQVDLG
GLVWUDFWHG7UDQWRULVQRZIHGE\WZHQW\DJULZRUOGVDQLPSURYLVHGOLIHOLQH
XVLQJK\SHUVKLSV,PDJLQH1RWWKDWWKHSDODFHLVDIIHFWHGRIFRXUVH
6RPH6HFWRUVDUHVWDUYLQJ+DULVDLG+HZDQWHGWRWHOO&OHRQRIWKH
PDQ\LQWHUWZLQHGWKUHDGVEXWWKH,PSHULDOHVFRUWDUULYHG

)DFHVQRLVHOLJKWVWKHYDVWFXUYLQJERZO
+DULOLVWHQHGWRWKHHFKRLQJIRUPDOLWLHVDVKHWRRNLQWKHVKHHUJUDYLW\
RIWKHSODFH0DQ\PLOOHQQLDROGZDOOVHQFUXVWHGZLWKKLVWRULFDOWDEOHWV
VXIIXVHGZLWKWUDGLWLRQDQGPDMHVW\
$QGWKHQKHZDVXSDQGVSHDNLQJZLWKQRPHPRU\RIJHWWLQJWRWKHKLJK
SRGLXPDWDOO7KHIXOOIRUFHRIWKHLUUHJDUGZDVKHGRYHUKLP3DUWRIKLP
UHFRJQL]HGD3DQGHHSVHQVDWLRQWKHWKULOORIEHLQJSDLGDWWHQWLRQWR$QGLW
ZDVH[KLODUDWLQJ3ROLWLFDOW\SHVZHUHQDWXUDODGGLFWVRILW%XWQRWRQH+DUL
6HOGRQOXFNLO\+HWRRNDGHHSEUHDWKDQGEHJDQ
/HWPHDGGUHVVDWKRUQLQRXUVLGHUHSUHVHQWDWLRQ7KLVERG\IDYRUV
OHVVSRSXORXV6HFWRUV6LPLODUO\WKH6SLUDO&RXQFLOIDYRUVOHVVSRSXORXV
ZRUOGV6RWKH'DKOLWHVERWKKHUHDQGLQWKHLU=RQHVDURXQGWKH*DOD[\DUH
GLVFRQWHQWHG<HWZHPXVWDOOSXOOWRJHWKHUWRFRQIURQWWKHJDWKHULQJFULVHV
6DUNWKHWLNWRNVXQUHVW
+HWRRNDGHHSEUHDWK:KDWFDQZHGR"$OOV\VWHPVRIUHSUHVHQWDWLRQ
FRQWDLQELDVHV,VXEPLWWRWKH&RXQFLODIRUPDOWKHRUHPZKLFK,KDYHSURYHG
VKRZLQJWKLVIDFW,UHFRPPHQGWKDW\RXKDYHLWFKHFNHGE\PDWKLVWV
+HVPLOHGGU\O\UHPHPEHULQJWRVZHHSKLVJD]HDFURVVDOOWKHDXGLHQFH
'RQRWWDNHDSROLWLFLDQDWKLVZRUGHYHQLIKHNQRZVDELWRIPDWK7KH
ODXJKWHUZDVSOHDVDQWO\UHDVVXULQJ(YHU\YRWLQJV\VWHPKDVXQGHVLUDEOH
FRQVHTXHQFHVDQGIDXOWOLQHV7KHTXHVWLRQLVQRWZKHWKHUZHVKRXOGEH
GHPRFUDWLFEXWKRZ$QRSHQH[SHULPHQWDODSSURDFKLVHQWLUHO\FRQVLVWHQWZLWK
DQXQZDYHULQJFRPPLWPHQWWRGHPRFUDF\
7KH'DKOLWHVDUHQWVRPHRQHVKRXWHG0XUPXUVRIDJUHHPHQW
7KH\DUH+DULFRXQWHUHGLPPHGLDWHO\%XWZHPXVWEULQJWKHPLQWRRXU
IROGE\OLVWHQLQJWRWKHLUJULHYDQFHV
&KHHUVERRV7LPHIRUDUHIOHFWLYHSDVVDJHKHMXGJHG2IFRXUVH
WKRVHZKREHQHILWIURPDSDUWLFXODUVFKHPHZUDSWKHPVHOYHVLQWKHPDQWOHRI
'HPRFUDF\VSHOOHGZLWKDELJ'
*UXPEOHVFDPHIURPDJHQWU\IDFWLRQSUHGLFWDEO\6RGRWKHLU
RSSRQHQWV+LVWRU\WHDFKHVXV+HSDXVHGWROHWDVPDOOULSSOHVSUHDG
WKURXJKWKHFURZGXSWXUQHGIDFHVVSHFXODWLQJZDVKHJRLQJWRDWODVWVSHDN
RISV\FKRKLVWRU\"RQO\WRGDVKWKHLUKRSHVE\FDOPO\FRQWLQXLQJWKDWVXFK
PDQWOHVFRPHLQPDQ\IDVKLRQVDQGDOOKDYHSDWFKHV
:HKDYHPDQ\PLQRULWLHVPDQ\VSUHDGDPRQJ6HFWRUVODUJHDQGVPDOO$QG
LQWKHHQWLUH*DODFWLFVSLUDO=RQHVRIYDU\LQJZHLJKW6XFKJURXSVDUHQHYHU
ZHOOGHSLFWHGLQRXUSROLWLFVLIZHHOHFWUHSUHVHQWDWLYHVVWULFWO\E\PDMRULW\
YRWHLQHDFK6HFWRURU=RQH
6KRXOGEHKDSS\ZLWKZKDWLVFULHGDSURPLQHQWPHPEHU
,UHVSHFWIXOO\GLVDJUHH:HPXVWFKDQJHKLVWRU\GHPDQGVLW
6KRXWVDSSODXVH2QZDUG7KHUHIRUH,SURSRVHDQHZUXOH,ID6HFWRU
KDVVD\VL[FRQWHVWHGVHDWVWKHQGRQRWVSOLWWKH6HFWRULQWRVL[
GLVWULFWV,QVWHDGJLYHHDFKYRWHUVL[YRWHV+HRUVKHFDQGLVWULEXWHYRWHV
DPRQJFDQGLGDWHVVSUHDGLQJWKHPRUFDVWLQJWKHPDOOIRURQHFDQGLGDWH7KLV
ZD\DFRKHVLYHPLQRULW\FDQFDSWXUHDUHSUHVHQWDWLYHLIWKH\YRWHWRJHWKHU
$FXULRXVVLOHQFH+DULJDYHZHLJKWWRKLVODVWZRUGV+HKDGWRJHWWKH
WLPHULJKWKHUH'DQHHOKDGEHHQFOHDU7KRXJK+DULVWLOOGLGQRWNQRZMXVW
ZKDWZDVJRLQJWRWUDQVSLUH
7KLVVFKHPHPDNHVQRUHIHUHQFHWRHWKQLFRURWKHUELDVHV*URXSVFDQ
SURILWRQO\LIWKH\DUHWUXO\XQLWHG7KHLUIROORZHUVPXVWYRWHWKDWZD\LQ
WKHSULYDF\RIWKHSROOV1RGHPDJRJXHFDQFRQWUROWKDW
,IPDGH)LUVW0LQLVWHU,VKDOOLPSRVHWKLVWKURXJKRXWWKH*UHDW
6SLUDO
7KHUHULJKWRQWKHEXWWRQ $QRGGDQFLHQWVD\LQJZKDWZDVDEXWWRQ" 
+HOHIWWKHSRGLXPWRVXGGHQWKXQGHULQJDSSODXVH
+DULKDGDOZD\VIHOWWKDWDVKLVPRWKHUDOZD\VVDLG,IDPDQKDVDQ\

JUHDWQHVVLQKLPLWFRPHVWROLJKWQRWLQDIODPER\DQWKRXUEXWLQWKHOHGJHU
RIKLVGDLO\ZRUN7KLVZDVXVXDOO\LQWRQHGZKHQ+DULKDGQHJOHFWHGKLVGDLO\
FKRUHVLQIDYRURIDPDWKERRN
1RZKHVDZWKHUHYHUVHJUHDWQHVVLPSRVHGIURPZLWKRXW
,QWKHJUDQGUHFHSWLRQURRPV KHIHOWKLPVHOIZKLVNHGIURPNQRWWRNQRW
RIVKDUSH\HGGHOHJDWHVHDFKZLWKDTXHVWLRQ$OODVVXPHGWKDWKHZRXOG
SDUOH\ZLWKWKHPIRUWKHLUYRWHV
+HGHOLEHUDWHO\GLGQRW,QVWHDGKHVSRNHRIWKHWLNWRNVRI6DUN$QG
ZDLWHG
&OHRQKDGGHSDUWHGDV FXVWRPUHTXLUHG7KHIDFWLRQVJDWKHUHGHDJHUO\
DURXQG+DUL
:KDWSROLF\IRU6DUN"
4XDUDQWLQH
%XWFKDRVUHLJQVWKHUHQRZ
,WPXVWEXPRXW
7KDWLVPHUFLOHVV<RXSHVVLPLVWLFDOO\DVVXPH
6LUSHVVLPLVWLVDWHUPLQYHQWHGE\RSWLPLVWV WRGHVFULEHUHDOLVWV
<RXUHDYRLGLQJRXU,PSHULDOGXW\OHWWLQJULRW
,KDYHMXVWFRPHIURP6DUN+DYH\RX"
%\VXFKIORXULVKHVKHDYRLGHGPRVWRIWKHJUXEE\EXVLQHVVRIVROLFLWLQJ
YRWHV+HFRQWLQXHGWRWUDLO/DPXUNRIFRXUVH6WLOOWKH+LJK &RXQFLOVHHPHG
WROLNHKLVVRPHZKDWGLVSDVVLRQDWH'DKOLWHSURSRVDOPRUHWKDQ/DPXUNV
ERPEDVW
$QGKLVKDUGOLQHRQ6DUNSURYRNHGUHVSHFW7KLVVXUSULVHGVRPHZKRKDG
WDNHQKLPIRUDVRIWDFDGHPLF<HWKLVYRLFHFDUULHGUHDOHPRWLRQDERXW6DUN
+DULKDWHGGLVRUGHUDQGKHNQHZZKDW6DUNZRXOGEULQJWRWKH*DOD[\
2IFRXUVHKHZDVQRWVRQDLYHDVWREHOLHYHWKDWDQHZV\VWHPRI
UHSUHVHQWDWLRQFRXOGDOWHUWKHIDWHRIWKH(PSLUH%XWLWFRXOGDOWHUKLV
IDWH
+DULKDGDVVXPHGGHVSLWHPRXQWLQJHYLGHQFHWRWKHFRQWUDU\WKDWKDUG
ZRUNDQGSXQLVKLQJO\KLJKVWDQGDUGVDUHGHPDQGHGRIDOOJURZQPHQWKDWOLIH
LVWRXJKDQGXQIRUJLYLQJWKDWHUURUDQGGLVJUDFHZHUHLUUHSDUDEOH,PSHULDO
SROLWLFVKDGVHHPHGWREHDFRXQWHUH[DPSOHEXWKHZDVEHJLQQLQJDVWDON
VZLUOHGDOODURXQGKLP
:RUGFDPHE\,PSHULDOPHVVHQJHUWKDW/DPXUNZLVKHGWRVSHDNZLWKKLP
:KHUH"+DULZKLVSHUHG
$ZD\RXWVLGHWKHSDODFH
)LQHE\PH
$QGH[DFWO\ZKDW'DQHHOKDGSUHGLFWHG(YHQ/DPXUNZRXOGQRWDWWHPSWD
PRYHDJDLQLQVLGHWKHSDODFHDIWHUWKHODVWRQH


2QKLVZD\KHFDXJKWDFRPPVTXLUW
$ZDOOGHFRUDWLRQQHDUWKHSDODFHVHQWDEOLSRIFRPSUHVVHGGDWDLQWR
KLVZULVWVSRQGHU $V+DULZDLWHGLQDYHVWLEXOHIRU/DPXUNKHRSHQHGLW
)LIWHHQ/DPXUNDLGHVDQGDOOLHVKDGEHHQLQMXUHGRUNLOOHG7KHLPDJHV
ZHUHLPPHGLDWHDIDOOKHUHDOLIWFUDVKWKHUH$OODFFXPXODWHGRYHUWKHODVW
IHZKRXUVZKHQWKHFRQIOXHQFHRIWKH+LJK&RXQFLOPDGHWKHLUSUREDEOH
ORFDWLRQVNQRZQ
+DULWKRXJKWDERXWWKHOLYHVORVW+LVUHVSRQVLELOLW\IRUKHKDG
DVVHPEOHGWKHFRPSRQHQWV7KHURERWVKDGWDUJHWHGWKHYLFWLPVZLWKRXWNQRZLQJ
ZKDWZRXOGIROORZ7KHPRUDOZHLJKWIHOOZKHUH"
7KHDFFLGHQWVZHUHVSUHDGDOORYHU7UDQWRU)HZZRXOGLPPHGLDWHO\
QRWLFHWKHFRQQHFWLRQVH[FHSWIRU
$FDGHPLFLDQ+DSS\WRVHH\RX/DPXUNVDLGVHWWOLQJLQWRSODFH
RSSRVLWH+DUL:LWKRXWVRPXFKDVDQRGWKH\OHWVOLSWKHIRUPDOLW\RID

KDQGVKDNH
:HVHHPDWRGGV+DULVDLG
$SOHDVDQWHPSW\FRPPHQW+HKDGVHYHUDOPRUHLQVWRUHDQGXVHGWKHP
HDWLQJXSWLPH$SSDUHQWO\/DPXUNKDGQRW\HWKHDUGWKDWKLVDOOLHVZHUHJRQH
'DQHHOKDGVDLGKHQHHGHGILYHPLQXWHVWREULQJRIIWKHHIIHFW
ZKDWHYHUWKDWPHDQW
+HSDUULHGZLWK/DPXUNDVPRUHPRPHQWVVOLSSHGE\+HFDUHIXOO\XVHGD
QRQDJJUHVVLYHERG\SRVWXUHDQGPLOGWRQHVWRFDOP/DPXUNVXFKVNLOOVKHQRZ
XQGHUVWRRGDIWHUWKHSDQV
7KH\ZHUHLQD&RXQFLO+RXVHQHDUWKHSDODFHULQJHGE\WKHLUJXDUG
SDUWLHV/DPXUNKDGVHOHFWHGWKHURRPDQGLWVHODERUDWHIORUDOGHFRUDWLRQV
8VXDOO\LWVHUYHGDVDORXQJHIRUUHSUHVHQWDWLYHVRIUXUDOVW\OH=RQHVDQGVR
ZDVOXVKZLWKJUHHQHU\8QXVXDOO\IRU7UDQWRULQVHFWVEX]]HGDERXWVHUYLFLQJ
WKHSODQWV
'DQHHOKDGVRPHWKLQJSODQQHG%XWKRZFRXOGKHSRVVLEO\JHWDQ\WKLQJLQ
SODFHDWDQDUELWUDU\SRLQW"$QGHOXGHWKHP\ULDGVHQVRUVDQGVQRRSHUV"
/DPXUNVRVWHQVLEOHSXUSRVHZDVWRFRQIHURQWKHWLNWRNFULVLV%HQHDWK
WKLVOXUNHGWKHVXEWH[WRIWKHLUULYDOU\IRUWKH)LUVW0LQLVWHUVKLS(YHU\RQH
NQHZWKDW/DPXUNZRXOGIRUFHDYRWHZLWKLQGD\V
:HKDYHHYLGHQFHWKDWVRPHWKLQJVSURSDJDWLQJYLUXVHVLQWKHWLNWRNV
/DPXUNVDLG
8QGRXEWHGO\+DULVDLG+HZDYHGDZD\DEX]]LQJLQVHFW
%XWLWVDIXQQ\RQH0\WHFKSHRSOH VD\LWVOLNHDOLWWOHVXEPLQG
QRWMXVWDYLUXV
$ZKROHGLVHDVH
8K\HV0LJKW\FORVHWRZKDWWKH\FDOOVHQWLHQWVLFNQHVV
,EHOLHYHLWWREHDVHOIRUJDQL]HGVHWRIEHOLHIVQRWDVLPSOH
GLJLWDOGLVHDVH
/DPXUNORRNHGVXUSULVHG$OOWKLVWLNWRNWDONDERXWWKHPRUDO
LPSHUDWLYHRIQRWHDWLQJDQ\WKLQJOLYLQJQRWHYHQSODQWVRU\HDVWV
,VVLQFHUHO\IHOW
3UHWW\GDPQVWUDQJH
<RXKDYHQRLGHD8QOHVVZHVWRSLWZHZLOOKDYHWRFRQYHUW7UDQWRUWR
DZKROO\DUWLILFLDOGLHW
/DPXUNIURZQHG1RJUDLQVQRIDX[IOHVK"
$QGLWZLOOVRRQVSUHDGWKURXJKRXWWKH(PSLUH
<RXUHVXUH"/DPXUNORRNHGJHQXLQHO\FRQFHUQHG
+DULKHVLWDWHG+HKDGWRUHPHPEHUWKDWRWKHUVKDGLGHDOVTXLWHORIW\
RQHV3HUKDSV/DPXUNGLG
7KHQKHUHPHPEHUHGKDQJLQJE\KLVILQJHUQDLOVXQGHUWKHHOLIW4XLWH
VXUH
'R\RXWKLQNWKLVLVMXVWDVLJQDV\PSWRP"2IWKH(PSLUHFRPLQJ
DSDUW"
1RWQHFHVVDULO\7KHWLNWRNVDUHDVHSDUDWHSUREOHPIURPJHQHUDOVRFLDO
GHFOLQH
<RXNQRZZK\,ZDQWWREH)LUVW0LQLVWHU",ZDQWWRVDYHWKH(PSLUH
3URIHVVRU6HOGRQ
6RGR,%XW\RXUZD\SOD\LQJSROLWLFDOJDPHVWKDWVQRWHQRXJK
+RZDERXWWKLVSV\FKRKLVWRU\RI\RXUV",I,XVHGWKDW
,WVPLQHDQGLWVQRWUHDG\\HW+DULGLGQWVD\WKDW/DPXUNZRXOG
EHWKHODVWSHUVRQKHZRXOGJLYHSV\FKRKLVWRU\WR
:HVKRXOGZRUNWRJHWKHURQWKLVQRPDWWHUZKDWKDSSHQVZLWKWKH)LUVW
0LQLVWHUVKLS/DPXUNVPLOHGREYLRXVO\TXLWHVXUHRIZKDWZRXOGKDSSHQ
(YHQWKRXJK\RXYHWULHGWRNLOOPH VHYHUDOWLPHV"
:KDW"6D\,KHDUGDERXWVRPHDWWHPSWVEXWVXUHO\\RXGRQWWKLQN
,MXVWZRQGHUHGZK\WKLVSRVWPHDQWVRPXFKWR\RX
/DPXUNGURSSHGKLVVXUSULVHGLQQRFHQFHPDVN+LVOLSWXUQHGXSLQD

GHULVLYHVQHHU2QO\DQDPDWHXUZRXOGHYHQDVN
3RZHUDORQH"
:KDWHOVHLVWKHUH"
3HRSOH
+D<RXUHTXDWLRQVLJQRUHLQGLYLGXDOV
%XW,GRQWGRLWLQOLIH
:KLFKSURYHV\RXUHDQDPDWHXU2QHOLIHKHUHRUWKHUHGRHVQWPDWWHU
7ROHDGWRUHDOO\OHDG\RXKDYHWREHDERYHVHQWLPHQWDOLW\
<RXFRXOGEHULJKW+HKDGVHHQDOOWKLVEHIRUHLQWKHSDQOLNH
S\UDPLGRIWKH(PSLUHLQWKHJUHDWJDPHRIHQGOHVVMRFNH\LQJDPRQJWKH
JHQWU\+HVLJKHG
6RPHWKLQJGHIOHFWHGKLVDWWHQWLRQDVPDOOYRLFH+HWXUQHGKLVKHDG
VOLJKWO\VLWWLQJEDFN
7KHWLQQ\YRLFHFDPHIURPDQLQVHFWKRYHULQJE\KLVHDU
:DONZD\LWUHSHDWHG:DONZD\
*ODG\RXUHFRPLQJWR\RXUVHQVHV/DPXUNVDLG,I\RXZHUHWRVWHS
RXWULJKWQRZQRWIRUFHWKLQJVWRDYRWH
:K\ZRXOG,GRWKDW"
+DULJRWXSDQGVWUROOHGWRRQHRIWKHPDQVL]HGIORZHUVKDQGVEHKLQG
KLVEDFN%HVWWRORRNDVWKRXJKKHZHUHIHHOLQJRXWDGHDO
3HRSOHFORVHWR\RXFRXOGJHWKXUW
/LNH<XJR"
6PDOOVWXII-XVWDZD\RIOHDYLQJP\FDOOLQJFDUG
$EURNHQOHJ
/DPXUNVKUXJJHG&RXOGEHZRUVH
$QG3DQXFRSLD":DV9DGGR\RXUPDQ"
/DPXUNZDYHGRQHKDQG,GRQWNHHSXSZLWKGHWDLOV0\SHRSOHZRUNHG
ZLWKWKH$FDGHPLF3RWHQWDWHRQWKDWRSHUDWLRQ,NQRZWKDW
<RXZHQWWRDORWRIWURXEOHRYHUPH
/DPXUNVH\HVQDUURZHGVKUHZGO\,ZDQWDELJYRWHEHKLQGPH,WU\
HYHU\DYHQXH
$ELJJHUYRWHWKDQ\RXYHJRW
:LWK\RXWKURZLQJVXSSRUWWRPHULJKW
7ZRLQVHFWVOHIWDELJURV\IORZHUDQGKRYHUHGEHVLGH/DPXUN+HJODQFHG
DWWKHPVZDWWHGDWRQH,WZKLUUHGDZD\&RXOGEHVRPHWKLQJLQLWIRU\RX
WRR
2WKHUWKDQP\OLIH"
/DPXUNVPLOHG$QG\RXUZLIHVGRQWIRUJHWKHU
,QHYHUIRUJHWWKUHDWVDJDLQVWP\ZLIH
$PDQVJRWWREHUHDOLVWLF
%RWKLQVHFWVZHUHEDFN6R,NHHS KHDULQJ
/DPXUNVPLUNHGDQGVDWEDFNVXUHRIKLPVHOIQRZ+HRSHQHGKLVPRXWK
/LJKWQLQJFRQQHFWHGWKHLQVHFWVWKURXJK/DPXUNVKHDG
+DULKLWWKHIORRUDVWKHEXUQW\HOORZHOHFWULFDOGLVFKDUJHVQDNHGDQG
SRSSHGLQWKHDLU/DPXUNKDOIURVH7KHEROWDUFHGLQWRERWKHDUV+LVH\HV
EXOJHG$WKLQFU\HVFDSHGKLVJDSLQJPRXWK
7KHQLWZDVJRQH7KHLQVHFWVIHOOOLNHH[KDXVWHGFLQGHUV
/DPXUNWRSSOHGIRUZDUG$VKHIHOOKLVDUPVUHDFKHGRXW+LVKDQGV
RSHQHGDQGFORVHGFRQYXOVLYHO\7KH\IDLOHGWRJUDVSDQ\WKLQJ7KHERG\
WKXPSHGDQGVSUDZOHGRQWKHFDUSHW$UPPXVFOHVVWLOOMXPSHGDQGWZLWFKHG
)UR]HQ+DULUHDOL]HGWKDWHYHQLQ/DPXUNVODVWPRPHQWWKHPDQKDGEHHQ
UHDFKLQJRXWWRJUDEDWKLP


+HKRYHUHGLQDQ1GLPHQVLRQDOVSDFHIDUIURPSROLWLFV
$VVRRQDV+DULUHWXUQHGWR6WUHHOLQJKHZHQWLQWRVHFOXVLRQ7KH

SDQGHPRQLXPIROORZLQJ/DPXUNVDVVDVVLQDWLRQZHUHWKHZRUVWKRXUVKHKDGHYHU
VSHQW
'DQHHOVDGYLFHKDGSURYHGXVHIXO1RPDWWHUZKDW,GRUHPDLQLQ\RXU
UROHDPDWKLVWWURXEOHGEXWDERYHWKHIUD\%XWWKHIUD\ZDVMDUULQJ
DQDUFK\6KRXWVDFFXVDWLRQVSDQLFV+DULKDGHQGXUHGILQJHUVSRLQWHGDWKLP
WKUHDWV/DPXUNVSHUVRQDOHVFRUWGUHZZHDSRQVZKHQ+DULILQDOO\OHIWWKH
DVVDVVLQDWLRQURRP+LV6SHFLDOVVWXQQHGILYHRIWKHP
1RZDOORI7UDQWRUDQGVRRQHQRXJKWKH(PSLUHZRXOGEHULIHZLWKUDJH
DQGVSHFXODWLRQ7KHLQVHFWVKRFNHUVKDGFDUULHGHQHUJLHVVWRUHGLQWLQ\
SRVLWURQLFWUDSVDWHFKQRORJ\WKRXJKWWREHH[WLQFW$WWHPSWVWRWUDFHLWOHG
QRZKHUH
,QDQ\FDVHWKHUHZDVQROLQNWR+DUL<HW
%\WUDGLWLRQDVVDVVLQDWLRQVZHUHNHSWDWDGLVWDQFHGRQHE\
LQWHUPHGLDULHV7KH\ZHUHDOVRVDIHUWKDWZD\+DULVSUHVHQFHZDVWKXVDQ
DUJXPHQWDJDLQVWKLVLQYROYHPHQWMXVW DV'DQHHOKDGSUHGLFWHG+DULOLNHG
WKDWDVSHFWRIWKHPDWWHUSDUWLFXODUO\DSUHGLFWLRQKROGLQJWUXH,QWKHPRE
K\VWHULDZKLFKIROORZHGQRRQHDVVXPHGKHZDVLPSOLFDWHG
+DULDOVRNQHZKLVOLPLWVDQGKHUHWKH\ZHUH+HFRXOGQRWGHDOZLWK
VXFKFKDRVH[FHSWLQWKHEURDGHUFRQWH[WRIPDWKHPDWLFV
6RLWZDVWRKLVIDPLOLDUVXSSOHDEVWUDFWLRQVWKDWKHIOHG
+HIDQQHGWKURXJKGLPHQVLRQVZDWFKLQJWKHSODQHVRISV\FKRKLVWRU\
HYROYH7KHHQWLUH*DOD[\VSUHDGEHIRUHKLPQRWLQLWVDZHVRPHVSLUDOEXWLQ
SDUDPHWHUVSDFH)LWQHVVSHDNVURVHOLNHULGJHVDQGFUHVWV+HUHZHUH
VRFLHWLHVZKLFKODVWHGZKLOHWKRVHGZHOOLQJLQWKHYDOOH\VSHULVKHG
6DUN+HFORVHXSSHGWKH6DUN=RQHDQGVWHSSHGWKHG\QDPLFDOHTXDWLRQV
DWEOXUULQJVSHHG7KH1HZ5HQDLVVDQFHZRXOGHIIHUYHVFHLQWROXULGFXOWXUDO
HUXSWLRQV&RQIOLFWVDURVHOLNHRUDQJHVSLNHVLQWKHILWQHVVODQGVFDSH6WDEOH
SHDNVFROODSVHG5XQRIIIURPWKHPFORJJHGWKHYDOOH\VPDNLQJSDWKVEHWZHHQ
SHDNVLPSDVVDEOH
7KLVPHDQWWKDWQRWPHUHO\SHRSOHEXWZKROHSODQHWVZRXOGEHXQDEOHWR
HYROYHRXWRIDGHSUHVVLYHYDOOH\7KRVHZRUOGVZRXOGVWHHSLQWKHPLUH
WUDSSHGIRUHRQV7KHQ
&ULPVRQIODUHV1RYDWULJJHUV2QFHXVHGWKHVHPDGHZDUIDUPRUH
GDQJHURXV
$VRODUV\VWHPFRXOGEHFOHDQVHGDKRUULI\LQJO\EODQGWHUPXVHGE\
DQFLHQWDJJUHVVRUVE\LQGXFLQJDPLOGQRYDEXUVWLQDEDOP\VXQ7KLVURDVWHG
ZRUOGVMXVWHQRXJKWRNLOODOOEXWWKRVHZKRFRXOGVZLIWO\ILQGFDYHUQVDQG
VWRUHIRRGIRUWKHIHZ\HDUVRIWKHQRYDVWDJH
+DULIUR]HZLWKKRUURU+HKDGIOHG LQWRKLVDEVWUDFWVSDFHVEXWGHDWK
DQGLUUDWLRQDOLW\GRJJHGKLPHYHQKHUH
,QWKHYDOXHIUHHSDUDPHWHUVSDFHVRIWKHHTXDWLRQVZDULWVHOIZDV
VLPSO\DQRWKHUZD\WRGHFLGHDPRQJSDWKV,WZDVZDVWHIXOFHUWDLQO\KLJKO\
FHQWUDOL]HGDQGTXLFN
,IZDU LQFUHDVHGWKHWKURXJKSXWHIILFLHQF\SDUDPHWHUVWKHQWKH
*DODFWLFV\VWHPZRXOGKDYHVHOHFWHGIRUPRUHZDUV,QVWHDG=RQDOZDUVKDG
VSXWWHUHGDORQJEHFRPLQJOHVVIUHTXHQW,Q6DUNVIXWXUHJODULQJUHGZDU
VWDLQVVKUDQNDVWLPHVWHSSHGIRUZDUGMXPSLQJ ZKROH\HDUVLQDIOLFNHU3LQN
DQGVRIW\HOORZVSODVKHVUHSODFHGWKHP
7KHVHZHUHPRUHFRQWLQXRXVGHFHQWUDOL]HGGHFLVLRQWUHHVRSHUDWLQJWR
GHIXVHFRQIOLFWV0LFURVFRSLFEULQJHUVRISHDFHWKHVHSURFHVVHV<HWWKH
SHRSOHLQYROYHGSUREDEO\QHYHUJXHVVHGWKDWWKHORQJVORZXQGXODWLRQVZHUH
EHWWHULQJWKHLUOLYHV7KH\QHYHUJOLPSVHGYDVWDJHQFLHVRXWVLGHWKHEOXQW
DJRQLHVDQGHFVWDV\RIKXPDQOLIH
7KHH[SHFWHGXWLOLW\PRGHOIDLOHGWRSUHGLFWWKLVRXWFRPH,QWKDW
YLHZHDFKZDUDURVHIURPDSHUIHFWO\UDWLRQDOFDOFXODWLRQE\=RQDODFWRUV
LQGHSHQGHQWRISUHYLRXVH[SHULHQFH<HWZDUVEHFDPHXQXVXDOVRWKH6DUNLDQ
=RQDOV\VWHPZDVOHDUQLQJ

,WFDPHWRKLPLQDIODVK6RFLHWLHVZHUHDQLQWULFDWHVHWRISDUDOOHO
SURFHVVRUV
(DFKZRUNLQJRQLWVRZQSUREOHP(DFKOLQNHGWRWKHRWKHU
%XWQRVLQJOHSURFHVVRUZRXOGNQRZWKDWLWZDVOHDUQLQJ
$V6DUNVRWKH(PSLUH7KH(PSLUHFRXOGNQRZWKLQJVWKDWQRSHUVRQ
JUDVSHG$QGIDUPRUHNQRZWKLQJVWKDWQRRUJDQL]DWLRQQRSODQHWQR=RQH
NQHZ
8QWLOQRZ8QWLOSV\FKRKLVWRU\
7KLVZDVQHZSURIRXQG
,WPHDQWWKDWIRUDOOWKHVHPLOOHQQLDWKH(PSLUHKDGJURZQDNLQGRI
VHOINQRZLQJXQOLNHDQ\ZD\RIFRPSUHKHQGLQJWKDWDPHUHKXPDQKDGRUHYHQ
FRXOGKDYH$GHHSNQRZLQJRWKHUWKDQWKHVHOIFRQVFLRXVQHVVZKLFKKXPDQV
ERUH
+DULSDQWHGZLWKVXUSULVH+HWULHGWRVHHLIKHFRXOGSRVVLEO\EH
ZURQJ
$IWHUDOOIHHGEDFNORRSVZHUHVFDUFHO\QHZ+DULNQHZWKHJHQHUDO
WKHRUHPDQFLHQWEH\RQGPHDVXUH,IDOOYDULDEOHVLQDV\VWHPDUHWLJKWO\
FRXSOHGDQG\RXFDQFKDQJHRQHRIWKHPSUHFLVHO\WKHQ\RXFDQLQGLUHFWO\
FRQWURODOORIWKHP7KHV\VWHPFRXOGEH JXLGHGWRDQH[DFWRXWFRPHWKURXJK
LWVP\ULDGLQWHUQDOIHHGEDFNORRSV6SRQWDQHRXVO\WKHV\VWHPRUGHUHGLWVHOI
DQGREH\HG
,QWUXO\FRPSOH[V\VWHPVKRZDGMXVWPHQWVRFFXUZDVEH\RQGWKHKXPDQ
FRPSOH[LW\KRUL]RQ%H\RQGNQRZLQJDQGPRVWLPSRUWDQWQRW ZRUWKNQRZLQJ
%XWWKLV+HH[SDQGHGWKH1GLPHQVLRQDOODQGVFDSHKRUL]RQVWKUXVWLQJ
DZD\DORQJD[HVKHFRXOGEDUHO\JUDVS
(YHU\ZKHUHWKH(PSLUHEULVWOHGZLWKOLIH3DWWHUQVWKHHTXDWLRQV
SLFNHGRXWOXPLQRXVVQDNLQJSDWKZD\VRIGDWDNQRZOHGJHZLVGRP$OOXQNQRZQWR
DQ\KXPDQ
7RDQ\RQHXQWLOWKLVPRPHQW
3V\FKRKLVWRU\KDGGLVFRYHUHGDQHQWLW\JUHDWHUWKDQKXPDQWKRXJKRI
KXPDQLW\
+HVDZVXGGHQO\WKDWWKH(PSLUHKDGLWVRZQODQGVFDSHJUHDWHUDQGPRUH
VXEWOHWKDQDQ\WKLQJKHKDGVXVSHFWHG7KH(PSLUHVFRPSOH[DGDSWLYHV\VWHP
KDGDFKLHYHGDSRLVHGVWDWHKRYHULQJLQWKHPDUJLQEHWZHHQRUGHUDQGIXOO
VSHFWUDOFKDRV7KHUHLWKDGVDWIRUPLOOHQQLDDFFRPSOLVKLQJHQGVDQGWDVNV
WKDWQRRQHNQHZ,WFRXOGDGDSWHYROYH,WVDSSDUHQWVWDVLV ZDVLQIDFW
HYLGHQFHWKDWWKH(PSLUHKDGIRXQGWKHSHDNLQDKXJHILWQHVVODQGVFDSH
$QGDV+DULZDWFKHGWKH(PSLUHYHHUHGWRZDUGWKHFDQ\RQVRIGLVRUGHU
+DUL7HUULEOHWKLQJVDUHKDSSHQLQJ&RPH
+H\HDUQHGWRVWD\WROHDUQPRUHEXWWKHYRLFHZDV'RUV


'DQHHOVDLGEOHDNO\0\DJHQWVP\EUHWKUHQDOOGHDG
7KHURERWVDWVOXPSHGRYHULQ+DULVRIILFH'RUVFRPIRUWHGKLP+DUL
UXEEHGKLVH\HVVWLOOUHFRYHULQJIURPWKHGLJLWDOLPPHUVLRQ7KLQJVZHUH
PRYLQJWRRIDVWIDUWRR
7LNWRNV7KH\DWWDFNHGP\P\'DQHHOFRXOGQRWJRRQ
:KHUH"'RUVDVNHG
$OORYHU7UDQWRU<RXDQG,DQGDIHZGR]HQRWKHUVRQO\ZHVXUYLYH
'DQHHOEXULHGKLVIDFHLQKLVKDQGV
'RUVJULPDFHG7KLVPXVWKDYHVRPHWKLQJWRGRZLWK/DPXUNKLVGHDWK
,QGLUHFWO\\HV
%RWKURERWVORRNHGDW+DUL+HOHDQHGDJDLQVWKLVGHVNVWLOOZHDN+H
VWXGLHGWKHPIRUDORQJPRPHQW,WZDVSDUWRIDODUJHUGHDO
)RUZKDW"'RUVDVNHG
7RHQGWKHWLNWRNUHYROW0\FDOFXODWLRQVVKRZHGWKDWLWZRXOGKDYH

VSUHDGUDSLGO\WKURXJKWKH(PSLUH)DWDOO\
$EDUJDLQ"'DQHHOSUHVVHGKLVOLSVLQWRWKLQSDOHZHGJHV
+DULEOLQNHGUDSLGO\ILJKWLQJDOHDGHQZHLJKWRIJXLOW2QH,GLGQRW
IXOO\FRQWURO
'RUVVDLGLFLO\<RXXVHGPHLQLWGLGQW\RX" ,KDQGOHGWKHGDWD
'DQHHOVHQWORFDWLRQVRI/DPXUNVDOOLHV
$QG,KDGLWUHOD\HGWRWKHWLNWRNV\HV+DULVDLGVREHUO\1RWD
GLIILFXOWWHFKQLFDOWULFNLI\RXKDYHKHOSIURP0HVKVSDFH
'DQHHOVH\HVQDUURZHGDWWKLVODVWUHIHUHQFH7KHQKHUHOD[HGKLVIDFH
DQGVDLG6RWKHWLNWRNVNLOOHG/DPXUNVPHQDQGZRPHQ<RXNQHZ,ZRXOGQRW
DOORZVXFKDPDVVPXUGHUHYHQWRDVVLVW\RX
+DULQRGGHGVREHUO\,XQGHUVWDQGWKHFRQVWUDLQWV\RXDFWXQGHU7KH
=HURWK/DZGHPDQGVUDWKHUKLJKVWDQGDUGVDQGP\IDWHDV)LUVW0LQLVWHUZRXOG
QRWMXVWLI\VXFKDEUHDFKRIWKH)LUVW/DZ
'DQHHOVWDUHGVWRQLO\DW+DUL6R\RXJRWDURXQGWKDW<RXXVHGPHDQG
P\URERWVDVDVVSRWWHUV
([DFWO\7KHWLNWRNVFORVHO\VKDGRZHG\RXUURERWV7KH\DUHUDWKHUGXPE
FUHDWXUHVGHYRLGRIVXEWOHW\%XWWKH\GRQRWODERUXQGHUWKH)LUVW/DZ2QFH
WKH\NQHZZKRWRKLW,RQO\QHHGHGJLYHWKHVLJQDOIRUZKHQWRVWULNH
7KHVLJQDOZKHQ\RXEHJDQ\RXUVSHHFK'RUVVDLG/DPXUNVDOOLHV
ZRXOGEHVLWWLQJEHIRUHVFUHHQVDQGZDWFKLQJ(DVLO\UHDFKHGDQGDOUHDG\
GLVWUDFWHGE\\RX
+DULVLJKHG([DFWO\
7KLVLVVRXQOLNH\RX+DUL'RUVVDLG
$QGDERXWWLPHWRR+DULVDLGVKDUSO\$JDLQDQGDJDLQWKH\WULHGWR
NLOOPH7KH\ZRXOGKDYHVXFFHHGHGHYHQWXDOO\HYHQLI,QHYHUEHFDPH)LUVW
0LQLVWHU
'RUVVDLGZLWKDWUDFHRIV\PSDWK\,ZRXOGQHYHUKDYHVXVSHFWHG\RXRI
VXFKFRROPRWLYHV
+DULJD]HGDWKHUEOHDNO\0HHLWKHU7KHRQO\UHDVRQ,FRXOGEULQJ
P\VHOIWRGRLWZDVWKDW,FRXOGVHHWKHIXWXUHP\IXWXUHVRSODLQO\
'DQHHOVIDFHZDVDVZLUORIHPRWLRQVRPHWKLQJ+DULKDGQHYHUZLWQHVVHG
EHIRUH%XWP\EUHWKUHQZK\WKHP",FDQQRWFRPSUHKHQG)RUZKDWUHDVRQGLG
WKH\GLH"
0\GHDO+DULVDLGWKURDWWLJKW$QG,KDYHMXVWEHHQGRXEOH
FURVVHG
<RXGLGQRWNQRZURERWVZRXOGGLH"+DULVKRRNKLVKHDGVDGO\1R,
VKRXOGKDYHVHHQLWWKRXJK,WLVREYLRXV+HVPDFNHGKLPVHOILQWKHKHDG
2QFHWKH WLNWRNVKDGGRQHP\MREWKH\FRXOGGRWKHZRUNRIWKHPHPHV
0HPHV"'DQHHODVNHG
'HDOIRUZKDW"'RUVDVNHGVKDUSO\
7RHQGWKHWLNWRNUHYROW+DULORRNHGDW'RUVDYRLGLQJ'DQHHOVJD]H
0\FDOFXODWLRQVVKRZHGWKDWLWZRXOGKDYHVSUHDGUDSLGO\WKURXJKWKH(PSLUH
)DWDOO\
'DQHHOVWRRG,XQGHUVWDQG\RXUULJKWWRPDNHKXPDQGHFLVLRQVDERXW
KXPDQOLYHV:HURERWVFDQQRWIDWKRPKRZ\RXFDQWKLQNLQWKHVHZD\VEXW
WKHQZHDUHQRWEXLOWWRGRVR6WLOO+DUL\RXPDGHDEDUJDLQZLWKIRUFHV
\RXGRQRWXQGHUVWDQG
,GLGQWVHHWKHLUQH[WPRYH+DULIHOWPLVHUDEOHEXWDSDUWRIKLP
QRWHGWKDW'DQHHODOUHDG\JUDVSHGZKRWKHPHPHVZHUH
'RUVGLGQRW:KRVHPRYH"VKHGHPDQGHG
7KHDQFLHQWV+DULVDLG+HH[SODLQHGLQKDOWLQJSKUDVHV2IKLV
UHFHQWH[SORUDWLRQVRIWKH0HVK2IWKHODE\ULQWKPLQGVZKRUHVLGHGLQWKRVH
GLJLWDOVSDFHVFROGDQGDQDO\WLFDOLQWKHLUUHYHQJH
:HURERWVOHIWWKRVH"'DQHHOZKLVSHUHG,KDGVXVSHFWHG
7KH\HOXGHG\RXLQWKHHDUO\URXJKVWDJHVRIRXUH[SDQVLRQLQWRWKH
*DOD[\2UVRWKH\VD\+DULORRNHGDZD\IURP'RUVZKRVWLOOJD]HGDWKLPLQ

VLOHQWVKRFN
'DQHHODVNHGFDXWLRXVO\:KHUHZHUHWKH\"
7KHKXJHVWUXFWXUHVDWWKH*DODFWLF&HQWHU\RXYHVHHQWKHP"
6RWKDWZDVZKHUHWKHVHHOHFWURPDJQHWLFSUHVHQFHVZHUHKLGLQJ"
)RUDZKLOH7KH\FDPHWR7UDQWRUORQJDJRZKHQWKH0HVKEHFDPHODUJH
HQRXJKWRVXSSRUWWKHP7KH\OLYHLQWKHQRRNVDQGFUDQQLHVRIRXUGLJLWDO
ZHEV$VWKH0HVKJURZVVRGRWKH\1RZWKH\UHVWURQJHQRXJKWRVWULNH7KH\
PLJKWKDYHZDLWHGORQJHUJRWWHQEHWWHUH[FHSWWKDWWZRVLPV,IRXQGSURYRNHG
WKHP
'DQHHOVDLGVORZO\7KRVH6DUNLDQVLPV-RDQDQG9ROWDLUH
<RXNQRZRIWKHP"+DULDVNHG
,WULHGWRVWXQWWKHLULPSDFW6DUNLDQPRGHVDUHEDGIRUWKH(PSLUH
,HPSOR\HGWKDW1LPIHOORZEXWKHSURYHGLQHSW
+DULVPLOHGZDQO\+LVKHDUWZDVQWLQLW+HOLNHGWKRVHVLPV
,VKRXOGKDYHVHQVHGWKDW'DQHHOVDLG<RXKDYHVRPHDELOLW\WR
SHUFHLYHRXUPHQWDOVWDWHVGRQW\RX"+DULDVNHG
,WLVOLPLWHG3DWWHUQVDUHPRUHHDVLO\VHQVHGLIWKHVXEMHFWKDVKDGD
FHUWDLQFKLOGKRRGGLVHDVHDVLWKDSSHQVDQG1LPZDVODFNLQJWKDW6WLOO,
NQRZWKDWKXPDQVDUHIRQGRIVHHLQJWKHLUNLQGUHQGHUHGLQRWKHUPHGLD
6XFKDVURERWV"+DULWKRXJKW7KHQZK\KDYHZHKDGWDERRVDJDLQVWWKHP
VLQFHDQWLTXLW\"'RUVZDVZDWFKLQJWKHWZRRIWKHPDZDUHWKDWWKH\ZHUH
IHHOLQJHDFKRWKHURXWRYHUPXUN\WHUULWRU\
+DULVDLGFDUHIXOO\7KHPHPHPLQGVEORFNHG1LPZKHQKHVHDUFKHGIRU
WKHVLPVLQWKH0HVK%XWKHZRUNHGRXWTXLWHZHOOZKHQ,QHHGHGKHOS
LQWHUIDFLQJZLWKWKH0HVK,OOSDUGRQWKHIHOORZZKHQWKLVLVRYHU
'DQHHOVDLGFROGO\7KRVHVLPVDQGWKHLUNLQGWKH\DUHVWLOO
GDQJHURXV+DUL,EHJ\RX
'RQWZRUU\,NQRZWKDW,OOGHDOZLWKWKHP,WVWKHPHPHPLQGVWKDW
ZRUU\PHQRZ
$QGWKHVHPLQGVKDWHXVDOO"'RUVDVNHGVORZO\WU\LQJWRJUDVSWKHVH
LGHDV
+XPDQV"<HVEXWQRWQHDUO\VRPXFKDV\RXUNLQGPORYH
8V"6KHEOLQNHG
5RERWVGLGGDPDJHWRWKHPORQJDJR
<HV'DQHHOVDLGVWHUQO\7RSURWHFWKXPDQLW\
$QGWKRVHROGHULQWHOOLJHQFHVKDWH\RXUNLQGIRU\RXUEUXWDOLW\%\WKH
WLPHWKHIOHHWVRIURERH[SORUHUVZHUHGRQHZHIRXQGD*DOD[\VXLWDEOHIRU
EHQLJQIDUPLQJ+DULIOLFNHGRQKLVKROR+HUHVDQLPDJH,EURXJKWIURPWKH
PHPHPLQGV
$FURVVDGDUNOLQJSODLQVZHSWDOLQHRI\HOORZ+DUVKZLQGVGURYHLW
IRUZDUGDVLWFRQVXPHGWKHWDOOVWDQGVRIOXVKJUDVV/LFNLQJIODPHVUHDFKHG
DQGDWHDQGUHDFKHGDJDLQ)URPWKHEULJKWEXUQLQJOLQHRIDWWDFNURVH
ELOORZLQJOHDGHQVPRNH
$SUDLULHILUH+DULVDLG7KDWLVKRZWKHURERWH[SORUHUVRIWZHQW\
WKRXVDQG\HDUVDJRORRNHGWRWKRVHDQFLHQWPLQGV
%XUQLQJXSWKH*DOD[\"'RUVVDLGKROORZO\
0DNLQJLWVDIHIRUWKHSUHFLRXVKXPDQV+DULVDLG
)RUWKLV'DQHHOVDLGWKH\ZLVKUHYHQJH%XWZK\QRZ"
7KH\DUHDWODVWDEOHDQGWKH\ILQDOO\GHWHFWHG\RXURERWV
GLVWLQJXLVKLQJ\RXIURPWKHWLNWRNV
'DQHHODVNHGVWRQLO\+RZ"
:KHQWKH\IRXQGWKHVLPV,KDGUHYLYHG:RUNLQJEDFNZDUGIURPWKHPWR
PHWKH\IRXQG'RUV7KHQ\RX
7KH\FDQVXUYH\WKDWZLGHO\"'RUVDVNHG
+DULVDLG$OOGLJLWDOLQIRUPDWLRQIURPVXUYHLOODQFHFDPHUDVIURP
VQRRSHUSLFNXSVPLFURGHYLFHVWKH\FDQILVKLQWKDWVHD
<RXKHOSHGWKHP'DQHHOVDLG

)RUWKHJRRGRIWKH(PSLUH,PDGHP\GHDOZLWKWKHP
'DQHHOVDLG7KH\ILUVWNLOOHGWKH/DPXUNLDQVWKHQWXUQHGRQP\
URERWV$VVLJQLQJDGR]HQWLNWRNVWRHDFKWKH\RYHUZKHOPHGRXUNLQG
$OORIXV"'RUVZKLVSHUHG
$ERXWDWKLUGRIXVHVFDSHG'DQHHODOORZHGKLPVHOIDKDUGVPLOH:H
DUHIDUPRUHFDSDEOHWKDQWKHVHDXWRPDWRQV
+DULQRGGHGVDGO\7KDWZDVQRWLQWKHGHDO7KH\XVHGPH
,WKLQNZHDUHDOOEHLQJXVHG'DQHHOFDVWDVRXUJODQFHDW+DUL,Q
GLIIHUHQWZD\V
,KDGWRGRLW IULHQG'DQHHO
'RUVVWDUHGDW+DUL,VFDUFHO\NQRZ\RX
+DULVDLGVRIWO\6RPHWLPHVEHLQJKXPDQLVKDUGHUWKDQLWORRNV
'RUVH\HVIODVKHG$OLHQVVODXJKWHULQJP\NLQG
,KDGWRILQGDVROXWLRQ
6KHVDLG5RERWVHVSHFLDOO\WKHKXPDQLIRUPVWKH\UHVHUYDQWVWKH\
0\ORYH\RXDUHPRUHKXPDQWKDQDQ\RQH,YHNQRZQ
%XWPXUGHU
7KHUHZDVJRLQJWREHPXUGHUDQ\ZD\7KHDQFLHQWPHPHVFRXOGQRWEH
VWRSSHG+DULVLJKHGDQGUHDOL]HGKRZIDUKHKDGFRPH7KLVZDVSRZHU
KRYHULQJDERYHDOODQGVHHLQJWKHZRUOGDVDYDVWDUHQDLWVFODVKHVXQHQGLQJ
+HKDGEHFRPHSDUWRIWKDWDQGNQHZKHFRXOGQRWJREDFNWREHLQJWKHVLPSOH
PDWKLVWHYHUDJDLQ
'RUVGHPDQGHG:K\DUH\RXVRVXUH"<RXFRXOGKDYHWROGXVZHFRXOG
7KH\NQHZ\RXDOUHDG\,I,KDGVWDOOHGWKH\ZRXOGKDYHWDNHQ\RXWZR
JRQHKXQWLQJIRUWKHUHVW
'DQHHODVNHGVWHUQO\$QGIRUXV"
%RWKRI\RX,VDYHG3DUWRIWKHGHDO
'DQHHOZLOWHGWKHQ7KDQN\RX,VXSSRVH
+DULJD]HGDWKLVROGIULHQGH\HV PLVWLQJ<RXDUHFDUU\LQJWRR
PXFKZHLJKW
'DQHHOQRGGHG,FDUULHGRXWWKHLPSHUDWLYHDQGREH\HG\RX
+DULQRGGHG/DPXUN,ZDVWKHUH<RXULQVHFWVIULHGKLP
2UDSSHDUHGWR
:KDW"+DULVWDUHGDV'DQHHOSUHVVHGDEXWWRQRQKLVZULVWWKHQWXUQHG
WRWKHRIILFHGRRU7KURXJKLWSDXVLQJVOLJKWO\IRUWKHVHFXULW\VFUHHQ
VWHSSHGDPDQRIXQUHPDUNDEOHORRNVLQDEURZQZRUNPDQVFRYHUDOO
2XU0LVWHU/DPXUN'DQHHOVDLG
7KDWLVQW+DULWKHQVDZWKHVXEWOHUHVHPEODQFHV7KHQRVHKDGEHHQ
WULPPHGFKHHNVILOOHGRXWKDLUWKLQQHGDQGEURZQHGHDUVVORSHGEDFN%XW,
VDZKLPGLH
6R\RXGLG7KHYROWDJHKHWRRNIXOO\VWRSSHGKLPIRUDELWDQGKDGP\
GLVJXLVHGJXDUGVQRWEHJXQSURSHUWUHDWPHQWDWWKHVLWHKHZRXOGKDYHVWD\HG
GHDG
<RXFRXOGSXOOKLPEDFNIURPWKDW"
,WLVDQDQFLHQWFUDIW
+RZORQJFDQDKXPDQUHPDLQGHDGEHIRUH"
$ERXWDQKRXUDWORZWHPSHUDWXUHV:HKDGWRZRUNPXFKIDVWHUWKDQ
WKDW'DQHHOVDLGLQPHDVXUHGWRQHV
+RQRULQJWKH)LUVW/DZ +DULVDLG
6KDGLQJLWDELW7KHUHLVQRODVWLQJKDUPGRQHWR/DPXUN1RZKHZLOO
GHYRWHKLVWDOHQWVWREHWWHUHQGV
:K\"+DULUHDOL]HGWKDW/DPXUNKDGVDLGQRWKLQJ7KHPDQVWRRG
DWWHQWLYHO\ZDWFKLQJ'DQHHOQRW+DUL
,GRKDYHFHUWDLQSRVLWLYHSRZHUVRYHUKXPDQPLQGV$QDQFLHQWURERW
QDPHG*LVNDUGJDYHPHOLPLWHGVZD\RYHUWKHQHXUDOFRPSOH[LWLHVRIWKHKXPDQ
FHUHEUDOFRUWH[,KDYHDOWHUHG/DPXUNVPRWLYDWLRQVDQGWULPPHGVRPH
PHPRULHV

+RZPXFK"'RUVDVNHGVXVSLFLRXVO\7RKHU+DULUHDOL]HG/DPXUNZDV
VWLOODQHQHP\XQWLOSURYHQRWKHUZLVH
'DQHHOZDYHGDKDQG6SHDN
,XQGHUVWDQGWKDW,KDYHHUUHG/DPXUNVSRNHLQDGU\VLQFHUHYRLFH
ZLWKRXWKLVXVXDOILUH,DSRORJL]HHVSHFLDOO\WR\RX+DUL,FDQQRWUHFDOO
P\RIIHQVHVEXW,UHJUHWWKHP,VKDOOGREHWWHUQRZ
<RXGRQRWPLVV\RXUPHPRULHV"'RUVSUREHG
7KH\DUHQRWSUHFLRXV/DPXUNVDLGUHDVRQDEO\$QHQGOHVVFKDLQRI
SHWW\EDUEDULWLHVDQGLQVDWLDEOHDPELWLRQVDVQHDUO\DV,FDQUHFDOO%ORRG
DQGDQJHU1RWJUHDWPRPHQWVVRZK\SUHVHUYHWKHP",ZLOOEHDEHWWHUSHUVRQ
QRZ
+DULIHOWERWKZRQGHUDQGIHDU,I\RXFRXOGGRWKLV'DQHHOZK\GR
\RXERWKHUWRDUJXHZLWKPH"-XVWFKDQJHP\PLQG
'DQHHOVDLGFDOPO\,ZRXOGQRWGDUH<RXDUHGLIIHUHQWIURPRWKHUV
%HFDXVHRISV\FKRKLVWRU\",VWKDWDOOWKDWKROGV\RXEDFN"
7KDW\HV%XW\RXDOVRGLGQRWKDYHWKHEUDLQIHYHUZKHQ\RXQJ7KDW
PDNHVP\VNLOOVXVHOHVV)RUH[DPSOH,FRXOGQRWVHQVH\RXUSORWWRXVHWKH
WLNWRNVDJDLQVWWKH/DPXUNIDFWLRQ ZKHQZHPHWLQWKDWRSHQSXEOLFSODFHWR
HQOLVWP\URERWVKHOS
,VHH7R+DULLWZDVVREHULQJWRVHHE\KRZVOHQGHUDWKUHDGKLV
GHDOLQJVKDGKXQJ0HUHO\PLVVLQJDFKLOGKRRGGLVHDVH
,DPORRNLQJIRUZDUGWRP\IXWXUHWDVNV/DPXUNVDLGIODWO\$QHZ
OLIH
:KDWWDVNV"'RUVDVNHG
,ZLOOJRWRWKH%HQLQ=RQHDVUHJLRQDOPDQDJHU$UHVSRQVLELOLW\ZLWK
PDQ\H[FLWLQJFKDOOHQJHV
9HU\JRRG'DQHHOVDLGDSSURYLQJO\
6RPHWKLQJLQWKHEODQGQHVVRIDOOWKLVVHQWDFKLOOGRZQ+DULVVSLQH
7KLVZDVSRZHULQGHHGSOD\HGE\DQDJHOHVVPDVWHU
<RXU=HURWK/DZLQDFWLRQ
,WLVHVVHQWLDOWRSV\FKRKLVWRU\'DQHHOVDLG
+DULIURZQHG+RZ"
7KH=HURWK/DZLVDFRUROODU\RIWKH)LUVW/DZIRUKRZFDQDKXPDQ
EHLQJEHVWEHNHSWIURPLQMXU\LIQRWE\HQVXULQJWKDWKXPDQVRFLHW\LQ
JHQHUDOLVSURWHFWHGDQGNHSWIXQFWLRQLQJ"
+DULVDLG$QGRQO\ZLWKDGHFHQWWKHRU\RIWKHIXWXUHFDQ\RXVHHZKDW
LVQHFHVVDU\
([DFWO\6LQFHWKHWLPHRI*LVNDUGZHURERWVKDYHODERUHGRQVXFKD
WKHRU\EULQJLQJIRUWKRQO\DFUXGHPRGHO6R+DUL\RXDQG\RXUWKHRU\DUH
HVVHQWLDO(YHQVR,NQHZWKDW,ZDVYHUJLQJFORVHWRWKH)LUVW/DZVOLPLW
ZKHQ,IROORZHG\RXURUGHUVXVLQJP\URERWVWRVKDGRZWKH/DPXUNLDQV
<RXVHQVHGVRPHWKLQJZURQJ"
+\SHUUHVLVWDQFHLQWKHSRVLWURQLFSDWKZD\VPDQLIHVWVDVWURXEOH
VWDQGLQJDQGZDONLQJDQGWKHQVSHDNLQJ,GLVSOD\HGDOOWKHVH,PXVWKDYH
VHQVHGWKDWP\URERWVZRXOGEHXVHGLQGLUHFWO\WRNLOOKXPDQV7KHDQFLHQW
*LVNDUGKDGVLPLODUGLIILFXOWLHVZLWK WKHERXQGDU\EHWZHHQWKH)LUVWDQG
=HURWK/DZV
'RUVPRXWKWUHPEOHGZLWKEDUHO\UHSUHVVHGHPRWLRQ7KHUHVWRIXV
GHSHQGXSRQ\RXUMXGJPHQWWRQHJRWLDWHWKHWHQVLRQEHWZHHQWKRVHWZRPRVW
IXQGDPHQWDORI/DZV,FRXOGQRWZLWKVWDQGZKDW\RXKDYHKDGWRHQGXUH
7U\LQJWRFRPIRUWKLP+DULVDLG<RXKDGQRFKRLFH'DQHHO,ER[HG
\RXLQ
'DQHHOORRNHGDW'RUVDOORZLQJFRQIOLFWHGH[SUHVVLRQVWRIOLWDFURVV
KLVIDFHDV\PSKRQ\RIDJRQ\7KH=HURWK/DZ,KDYHOLYHGZLWKLWIRUVR
ORQJPDQ\PLOOHQQLDDQG\HW
7KHUHLVDFOHDUFRQWUDGLFWLRQ+DULVDLGVRIWO\NQRZLQJKHZDV
WUHDGLQJLQWHUULWRU\RIJUHDWGHOLFDF\7KHVRUWRIFRQFHSWXDOFODVKDKXPDQ

PLQGFDQVRPHWLPHVPDQDJH
'RUVZKLVSHUHG%XWZHFDQQRWH[FHSWDWJUDYHSHULOWRRXUYHU\
VWDELOLW\
'DQHHOKXQJKLVKHDG:KHQ,JDYHWKHRUGHUVDQDFLGLFDJRQ\DURVHLQ
P\PLQGDVFDOGLQJWLGH,KDYHEDUHO\FRQWDLQHG
+DULVWKURDWMXVWDOORZHGKLPWRVTXHH]HRXWKLVZRUGV2OGIULHQG
\RXKDGQRFKRLFH6XUHO\LQDOO\RXUDJHVRIODERULQWKHKXPDQFDXVHRWKHU
FRQWUDGLFWLRQVKDYHDULVHQ"
'DQHHOQRGGHG0DQ\$QGHDFKWLPH,KDQJDERYHDQDE\VV
<RXFDQQRWVXFFXPE'RUVVDLG<RXDUHWKHJUHDWHVWRIXV0RUHLV
GHPDQGHGRI\RX
'DQHHOORRNHGDWERWKRIWKHPDVLIVHHNLQJDEVROXWLRQ$FURVVKLVIDFH
IOLFNHUHGIRUORUQKRSH,VXSSRVH
+DULDGGHGKLVDVVHQWDOXPSLQKLVWKURDW2IFRXUVH$OOLVORVW
ZLWKRXW\RX<RXPXVWHQGXUH
'DQHHOORRNHGRIILQWRLQILQLW\VSHDNLQJLQDGU\ZKLVSHU0\
ZRUNLWLVQRWGRQHVR,FDQQRWGHDFWLYDWH7KLVPXVWEHZKDWLWLV
OLNHWREHWUXO\KXPDQWRUQEHWZHHQWZRSROHV6WLOO,FDQORRNIRUZDUG
7KHUHZLOOFRPHDWLPHZKHQP\ZRUNLVILQLVKHG:KHQ ,FDQEHUHOLHYHGRI
WKHVHFRQWUDGLFWRU\WHQVLRQV7KHQ,VKDOOIDFHWKHEODFNEODQNQHVVDQGLW
ZLOOEHJRRG
7KHIHUYRURIWKHURERWVVSHHFKOHIW+DULVLOHQWDQGVDG)RUDORQJ
WLPHWKHWKUHHVDWWRJHWKHULQWKHKXVKHGURRP/DPXUNVWRRGDWWHQWLYH DQG
VLOHQW
7KHQZLWKRXWDIXUWKHUZRUGWKH\ZHQWWKHLUVHSDUDWHZD\V


+DULVDWDORQHDQGVWDUHGDWWKHKRORRIDUDJLQJDQFLHQWSUDLULHILUH
,QLWVSODFHQRZVWRRGWKH(PSLUH+HNQHZQRZWKDWKHORYHGWKH(PSLUH
IRUUHDVRQVKHFRXOGQRWQDPH7KHGDUNUHYHODWLRQWKDWWKHURERWVKDG
YLVLWHGGHDWKDQGGHVWUXFWLRQXSRQWKHROGUHPQDQWGLJLWDOPLQGVHYHQWKDW
GLGQRWGHWHUKLP+HZRXOGQHYHUNQRZWKHGHWDLOVRIWKDWDQFLHQWFULPHKH
KRSHG
7RSUHVHUYHKLVVDQLW\IRUWKHILUVWWLPHLQ KLVOLIHKHGLGQRWZDQW
WRNQRZ
7KH(PSLUHWKDWVWRRGDOODURXQGKLPZDVHYHQPRUHPDUYHORXVWKDQKHKDG
VXVSHFWHG$QGPRUHVREHULQJ
:KRFRXOGDFFHSWWKDWKXPDQLW\GLGQRWFRQWUROLWVRZQIXWXUHWKDW
KLVWRU\ZDVWKHUHVXOWRIIRUFHVDFWLQJEH\RQG WKHKRUL]RQVRIPHUHPRUWDO
PHQ"7KH(PSLUHKDGHQGXUHGEHFDXVHRILWVPHWDQDWXUHQRWWKHYDOLDQWDFWVRI
LQGLYLGXDOVRUHYHQRIZRUOGV
0DQ\ZRXOGDUJXHIRUKXPDQVHOIGHWHUPLQDWLRQ7KHLUDUJXPHQWVZHUHQRW
ZURQJRUHYHQLQHIIHFWXDOMXVWEHVLGHWKH SRLQW$VSHUVXDVLRQWKH\ZHUH
SRZHUIXO(YHU\RQHZDQWHGWREHOLHYHWKH\ZHUHPDVWHUVRIWKHLURZQIDWH
/RJLFKDGQRWKLQJWRGRZLWKLW
(YHQ(PSHURUVZHUHQRWKLQJFKDIIEORZQE\ZLQGVWKH\FRXOGQRWVHH
$VLIWRUHIXWHKLP&OHRQVLPDJHDEUXSWO\FRDJXODWHGLQWKHKROR
+DUL:KHUHKDYH\RXEHHQ"
:RUNLQJ
2Q\RXUHTXDWLRQV,KRSHEHFDXVH\RXUHJRLQJWRQHHGWKHP
6LUH"
7KH+LJK&RXQFLOMXVWPHWLQVSHFLDOVHVVLRQ,DSSHDUHGDQRWHRI
JUDFHDQGJUDYLW\ZDVPXFKQHHGHG,QWKHZDNHRIWKHDKWUDJLFORVVRI
/DPXUNDQGKLVDKDVVRFLDWHV,XUJHGWKHTXLFNHOHFWLRQRID)LUVW
0LQLVWHU$EURDGZLQN)RUVWDELOLW\\RXXQGHUVWDQG
+DULFURDNHG2KQR

2K\HVP\)LUVW0LQLVWHU
%XWZDVQWWKHUHGLGQWDQ\RQHVXVSHFW
<RX"$KDUPOHVVDFDGHPLFEULQJLQJRIIDVVDVVLQDWLRQVLQGR]HQVRI
SODFHVDOORYHU7UDQWRU"8VLQJWLNWRNV"
:HOO\RXNQRZKRZSHRSOHZLOOWDON
&OHRQJDYHKLPDVKUHZGORRN&RPHQRZ+DULKRZGLG\RXGRLW"
,FRXQWDPRQJP\DOOLHVDJDQJRIUHQHJDGHURERWV
&OHRQODXJKHGORXGO\VODSSLQJKLVGHVN,QHYHUNQHZ\RXZHUHVXFKD
MRNHVWHU9HU\ZHOO,TXLWHXQGHUVWDQG<RXVKRXOGQRWEHIRUFHGWRUHYHDO
\RXUVRXUFHV
+DULKDGVZRUQWRKLPVHOIWKDWKHZRXOGQHYHUOLHWRWKH(PSHURU1RW
EHLQJEHOLHYHGZDVQRWSDUWRIWKHDJUHHPHQW,DVVXUH\RXVLUH
2IFRXUVH\RXDUHULJKWWRMHVW,DPQRWQDLYH
$QG,DPDORXV\OLDUVLUH7UXHDOVRDQGDVZHOOWKHEHVWZD\WR
FORVHWKHPDWWHU
,ZDQW\RXWRFRPHWRWKHIRUPDOUHFHSWLRQIRUWKH+LJK&RXQFLO1RZ
WKDW\RXUH)LUVW0LQLVWHUWKHUHZLOOEHWKHVHVRFLDOPDWWHUV%XWEHIRUH
WKDW,GRZDQW\RXWRWKLQNDERXWWKH6DUNVLWXDWLRQDQG
,FDQDGYLVH\RXQRZ
&OHRQEULJKWHQHG2K"
7KHUHDUHGDPSHUVLQKLVWRU\VLUHZKLFKVWDELOL]HWKH(PSLUH7KH1HZ
5HQDLVVDQFHLVDEUHDNRXWRIDIXQGDPHQWDOIDFHWDQGIODZRIKXPDQLW\,WPXVW
EHVXSSUHVVHG
<RXUHVXUH"
,IZHGRQRWKLQJ+DULUHFDOOHGWKHVROXWLRQVKHKDGMXVWWULHGLQ
WKHILWQHVVODQGVFDSH/HWWKH1HZ5HQDLVVDQFHJRDQGWKH(PSLUHZRXOG
GLVVROYHLQWRFKDRVVWDWHVZLWKLQPHUHGHFDGHV7KDWPLJKWGHVWUR\KXPDQLW\
LWVHOI
&OHRQJULPDFHG7UXO\":KDWDUHP\RWKHURSWLRQV"
6TXHOFKWKHVHHUXSWLRQV7KH6DUNLDQVDUHEULOOLDQWWUXH EXWWKH\
FDQQRWILQGDVKDUHGKHDUWIRUWKHLUSHRSOH7KH\DUHH[DPSOHVRIZKDW,FDOO
D6ROLSVLVP3ODJXHDQH[FHVVLYHEHOLHILQWKHVHOI,WLVFRQWDJLRXV
7KHKXPDQWROO
6DYHWKHVXUYLYRUV6HQG,PSHULDODLGVKLSVWKURXJKWKHZRUPKROHV
IRRGFRXQVHORUVSV\FKHUVLIWKH\UHDQ\KHOS%XWDIWHUWKHGLVRUGHUKDV
EXUQHGLWVHOIRXW
,VHH&OHRQJDYHKLPDJXDUGHGJODQFHIDFHVOLJKWO\DYHUWHG<RX
DUHDKDUGPDQ+DUL
:KHQLWFRPHVWRSUHVHUYLQJRUGHUWKH(PSLUH\HVVLUH
&OHRQZHQW RQWRVSHDNRIPLQRUPDWWHUVDVLIVK\LQJDZD\IURPVR
EUXWDODWRSLF+DULZDVJODGKHKDGQRWDVNHGPRUH
7KHORQJUDQJHSUHGLFWLRQVVKRZHGGLUHGULIWVWKDWWKHFODVVLFGDPSHUV
LQWKH(PSLUHVVHOIOHDUQLQJQHWZRUNVZHUHIDLOLQJWRR7KH1HZ5HQDLVVDQFH
ZDVEXWWKHPRVWIODJUDQWH[DPSOH
%XWHYHU\ZKHUHKHKDGORRNHGZLWKKLVERG\VHQVRULXPWLHGLQWRWKH1
GLPHQVLRQDOVSHFWUXPURVHWKHVWLQNRILPSHQGLQJFKDRV7KH(PSLUHZDV
EUHDNLQJGRZQLQZD\VZKLFKZHUHQRWGHVFULEDEOHE\PHUHKXPDQPRGHV,WZDV
WRRYDVWDV\VWHPWRHQFORVHZLWKLQDVLQJOHPLQG
6RVRRQZLWKLQGHFDGHVWKH(PSLUHZRXOGVWDUWWRIUDJPHQW0LOLWDU\
VWUHQJWKZDVRIOLWWOHORQJWHUPXVHZKHQWKHWLPHKRQRUHGGDPSHUVIDOWHUHG
7KHFHQWHUFRXOGQRWKROG
+DULFRXOGVORZWKDWFROODSVHDELWSHUKDSVWKDWZDVDOO6RRQZKROH
=RQHVZRXOGVSLUDOEDFNWRWKHROGDWWUDFWRUV%DVLF)HXGDOLVP5HOLJLRXV
6DQFWLPRQ\)HPRSULPLWLYLVP
2IFRXUVHKLVFRQFOXVLRQVZHUHSUHOLPLQDU\+HKRSHGQHZGDWDZRXOG
SURYHKLPZURQJ%XWKHGRXEWHGLW
2QO\DIWHUWKLUW\WKRXVDQG\HDUVRIVXIIHULQJZRXOGWKHIHYHUEXPRXW$

QHZVWURQJDWWUDFWRUZRXOGHPHUJH
$UDQGRPPXWDWLRQRI%HQLJQ,PSHULDOLVP"+HFRXOGQRWWHOO
+HFRXOGXQGHUVWDQGDOOWKLVEHWWHUZLWKPRUHZRUN([SORUHWKH
IRXQGDWLRQVJHW
$QLGHDIOLFNHUHG)RXQGDWLRQV"6RPHWKLQJWKHUH
%XW&OHRQZDVJRLQJRQDQGHYHQWVZHUHFROOLGLQJLQKLVPLQG7KHLGHD
IOLWWHGDZD\
:HOOGRJUHDWWKLQJVWRJHWKHU+DUL:KDWGR\RXWKLQNDERXW
$W&OHRQVEHFNDQGFDOOKHZRXOGQHYHUJHWDQ\ZRUNGRQH
'HDOLQJZLWK/DPXUNKDGEHHQGLVDJUHHDEOHEXWLQFRPSDULVRQZLWKWKLV
WUDSRISRZHUHDV\+RZFRXOGKHJHWRXWRIWKLV"


7KHWZRILJXUHVIURPDSDVWEH\RQGDQWLTXLW\IOHZLQWKHLUFRROGLJLWDO
VSDFHVZDLWLQJIRUWKHPDQWRUHWXUQ
,KDYHIDLWKKHZLOO-RDQVDLG
,UHO\PRUHXSRQFDOFXODWLRQ9ROWDLUHUHSOLHGDGMXVWLQJKLVJDUE+H
VRIWHQHGWKHSXOORIVLONLQKLVWLJKWIRUPDOEUHHFKHV,WZDVDVLPSOH
DGMXVWPHQWRIWKHIULFWLRQFRHIILFLHQWQRWKLQJPRUH5RXJKDOJRULWKPVUHGXFHG
LQWULFDWHODZVWRWULYLDODULWKPHWLF(YHQWKHUXERIOLIHZDVMXVWDQRWKHU
SDUDPHWHU
,VWLOOUHVHQWWKLVZHDWKHU
*DOHVKRZOHGDFURVVWURXEOHGZDWHUV7KH\IOHZDERYHIRDPLQJZDYHVDQG
EDQNHGRQWKHUPDOXSZHOOLQJV
<RXULGHDWREHELUGVIRUDELW+HZDVDVLOYHU\HDJOH
,DOZD\VHQYLHGWKHP6ROLJKWFKHHUIXODWRQHZLWKWKHDLULWVHOI
+HPRUSKHGKLVZLQJVXSWRKLVVKRXOGHUVPDNLQJKLVYHVWFRDWILWPXFK
EHWWHU(YHQKHUHOLIHZDVPRVWO\GHWDLOV
:K\PXVWVXFKVWUDQJHQHVVPDQLIHVWDVZHDWKHU"-RDQDVNHG
0HQDUJXHQDWXUHDFWV
%XWWKH\DUHQRWQDWXUH7KH\DUHVWUDQJHPLQGV
6RVWUDQJHZHPLJKWDVZHOOUHJDUGWKHPDVQDWXUDOSKHQRPHQD
,ILQGLWGLIILFXOWWREHOLHYHWKDWRXU/RUGPDGHVXFKWKLQJV
,YHIHOWWKDWZD\DERXWPDQ\3DULVLDQV
7KH\DSSHDUWRXVDVVWRUPVPRXQWDLQVRFHDQV,IWKH\ZRXOGH[SODLQ
WKHPVHOYHV
7KHVHFUHWRIEHLQJDERUHLVWRWHOOHYHU\WKLQJ
+DUN+HFRPHV
6KHJUHZDUPRUZKLOHNHHSLQJKHUJLDQWZLQJV7KHHIIHFWZDVVWDUWOLQJ
OLNHDJLDQWFKURPHGIDOFRQ
9ROWDLUHVDLG0\ORYH\RXQHYHUFHDVHWRVXUSULVHPH,EHOLHYHWKDW
ZLWK\RXHYHQHWHUQLW\ZLOOQRWEHWHGLRXV
+DUL6HOGRQKXQJLQPLGDLU+HZDVFOHDUO\QRW\HWXVHGWRDGYHQWXUHVRPH
VLPXODWLRQVIRUKLVIHHWNHSWWU\LQJWRVWDQGVRPHZKHUH(YHQWXDOO\KHJDYH
XSDQGZDWFKHGWKHPVZRRSDQGGLYHDURXQGKLP
,FDPHDVVRRQDV,FRXOG
,JDWKHU\RXDUHQRZDYLVFRXQWRUGXNHRUVXFK-RDQVDLG
6RPHWKLQJOLNHWKDW+DULVDLG7KLVVSDFH\RXUHLQ,YHDUUDQJHG
IRULWWREHDSHUPDQHQWDK
3UHVHUYH"9ROWDLUHDVNHGEDWWLQJKLVZLQJVEHIRUHWKH+DULILJXUH$
FORXGGULIWHGQHDUHUDVLIWROLVWHQLQ
:HFDOOLWDGHGLFDWHGSHULPHWHULQFRPSXWDWLRQDOVSDFH
6XFKSRHWU\9ROWDLUHDUFKHGDQH\HEURZ
7KDWVRXQGVPXFKOLNHD]RR-RDQVDLG
7KHGHDOLV\RXDQGWKHDOLHQPLQGVFDQVWD\KHUHUXQQLQJZLWKRXW
LQWHUIHUHQFH

,GRQRWOLNHWREHKHPPHGLQ-RDQVKRXWHG+DULVKRRNKLVKHDG
<RXOOEHDEOHWRJHWLQSXWIURPDQ\ZKHUH%XWQRPRUHLQWHUIHUHQFHZLWKWKH
WLNWRNVULJKW"
$VNWKHZHDWKHU-RDQVDLG
$FDVFDGHRIEXUQWRUDQJHVKHHWOLJKWQLQJUDQGRZQWKHVN\
,PMXVWJODGWKHPHPHPLQGVGLGQWH[WHUPLQDWHDOOWKHURERWV+DUL
VDLG
9ROWDLUHVDLG3HUKDSVWKLVSODFHLVDELWOLNH(QJODQGZKHUHWKH\
NLOODQRFFDVLRQDODGPLUDOWRHQFRXUDJHWKHRWKHUV
,KDGWRGRLW+DULVDLG
-RDQVORZHGKHUZLQJVDQGKRYHUHGQHDUKLVIDFH<RXDUHGLVWUHVVHG
'LG\RXNQRZWKHPHPHPLQGVZRXOGXVHWKHWLNWRNVWRNLOOURERWV"
1RWDWDOO-RDQVDLG
9ROWDLUHDGGHG7KRXJKWKHHFRQRP\RILWSURYRNHVDFHUWDLQDGPLUDWLRQ
6XEWOHPLQGVWKH\DUH
7UHDFKHURXV+DULVDLG,ZRQGHUZKDWHOVHWKH\FDQGR"
,EHOLHYHWKH\DUHVDWLVILHG-RDQVDLG,VHQVHDFDOPLQRXU
ZHDWKHU
,ZDQWWRVSHDNZLWKWKHP+DUL VKRXWHG
/LNHNLQJVWKH\OLNHWREHDZDLWHG9ROWDLUHVDLG
,VHQVHWKHPJDWKHULQJ-RDQVDLGKHOSIXOO\/HWXVKHOSRXUIULHQG
KHUHZLWKKLVYH[DWLRQV
0H"+DULVDLG,GRQWOLNHNLOOLQJSHRSOHLIWKDWVZKDW\RXPHDQ
,QVXFKWLPHVWKHUHLVQRJRRGSDWKVKHVDLG,WRRKDGWRNLOO
IRUWKHULJKW
/DPXUNZDVDYDOXDEOHSXEOLFVHUYDQW
1RQVHQVH9ROWDLUHVDLG+HOLYHGDVKHGLHGE\WKHGDJJHUWRR
VOLSSHU\WRVKRZWKHVZRUG+HZRXOGQHYHUUHVWZLWK\RXLQSRZHU$QGHYHQ
KDG\RXVWHSSHGDVLGHZHOOP\PDWKLVWUHPHPEHUWKDWLWLVGDQJHURXVWREH
ULJKWZKHQWKHJRYHUQPHQWLVZURQJ
,VWLOOIHHOFRQIOLFWHG
<RXPXVWIRU\RXDUHDULJKWHRXVPDQ-RDQVDLG3UD\DQGEH
DEVROYHG
2UEHWWHUSHHUZLWKLQ9ROWDLUHH[SODLQHGORIWLO\<RXUFRQIOLFWV
UHIOHFWVXEPLQGVLQGLVSXWH6XFKLVWKHKXPDQFRQGLWLRQ
-RDQIODSSHGKHUZLQJVDW9ROWDLUHZKRYHHUHGDZD\
+DULVFRZOHG7KDWVRXQGVPRUHOLNHDPDFKLQH
9ROWDLUHODXJKHG,IRUGHU\RXDUHDQHQWKXVLDVWRIRUGHU\HV"PHDQV
SUHGLFWDELOLW\DQGSUHGLFWDELOLW\PHDQVSUHGHWHUPLQDWLRQDQGWKDWPHDQV
FRPSXOVLRQDQGFRPSXOVLRQPHDQVQRQIUHHGRPZK\WKHQWKHRQO\ZD\ZHFDQEH
IUHHLVWREHGLVRUGHUHG
+DULIURZQHG9ROWDLUHUHDOL]HGWKDWZKLOHIRUKLPLGHDVZHUH
SOD\WKLQJVDQGWKHFRQWHVWRIZLWVPDGHWKHEORRGVLQJIRUWKLVPDQWKH
DEVWUDFWPDWWHUHG
+DULVDLG,VXSSRVH\RXUHULJKW3HRSOHGRIHHOGLVFRPIRUWZLWKULJLG
RUGHU$QGZLWKKLHUDUFKLHVQRUPVIRXQGDWLRQV+HEOLQNHG7KHUHVDQ
LGHD,FDQWTXLWHVHHLW
9ROWDLUHVDLGNLQGO\(YHQ\RXVXUHO\\RXGRQRWZDQWWREHWKHWRRO
RI\RXURZQJHQHVRURISK\VLFVRURIHFRQRPLFV"
+RZFDQZHEHIUHHLIZHUHPDFKLQHV"+DULDVNHGDVLIVSHDNLQJWR
KLPVHOI
1RERG\ZDQWVHLWKHUDUDQGRPXQLYHUVHRUDGHWHUPLQLVWLFRQH9ROWDLUH
VDLG
%XWWKHUHDUHGHWHUPLQLVWLFODZV
$QGUDQGRPRQHV
-RDQSXWLQ2XU/RUGJDYHXVMXGJPHQWWRFKRRVH
)UHHGRPWRFKRRVHWRGRRWKHUWKDQRQHZRXOGOLNHZKDWDVRUGLG ERRQ

9ROWDLUHVDLG
-RDQVDLG<RXJHQWOHPHQDUHFLUFOLQJWKHGLYLQHZLWKRXWNQRZLQJLW
(YHU\WKLQJZRUWKZKLOHWRSHRSOHIUHHGRPPHDQLQJYDOXHDOOWKDWGLVDSSHDUV
ZLWKLQHLWKHURI\RXUFKRLFHV
0\ORYH\RXPXVWUHPHPEHUWKDW+DULLVDPDWKLVW9ROWDLUH]RRPHG
DERXWERWKRIWKHPRQVSUHDGZLQJVREYLRXVO\HQMR\LQJUXIIOLQJKLVIHDWKHUV
LQWKHWXUEXOHQFH2UGHUGLVRUGHUVHHPLPSOLFDWHGLQRWKHUGXDOLVPV
QDWXUHKXPDQQDWXUDODUWLILFLDODQLPDOVZLWKQDWXUHVKXPDQVRXWVLGHQDWXUH
7KH\DUHQDWXUDOWRXV
+RZFRPH"+DULVTXLQWHGSX]]OHG
+RZGRZHIUDPHWKHRWKHUVLGHRIDQDUJXPHQW":HVD\RQWKHRWKHU
KDQG\HV"
+DULQRGGHG:HWKLQNRXUWZRKDQGVPLUURUWKHZRUOG
9HU\JRRG9ROWDLUHIOHZORRSVDURXQG-RDQVFKURPHGIDOFRQ
7KH&UHDWRUKDVWZRKDQGVDVZHOO-RDQSHUVLVWHG+HVLWWHWKRQWKH
ULJKWKDQGRIWKH)DWKHUDOPLJKW\
9ROWDLUHFDZHGOLNHDFURZ%XW\RXUHERWKQHJOHFWLQJ\RXURZQ
VHOYHVZKLFK\RXFDQLQVSHFWLQWKLVGLJLWDOYDXOW/RRNGHHSO\DQG\RXVHH
HQGOHVVGHWDLO,WUDPLILHVLQWRD6HOIWKDWFDQQRWEHGHFRPSRVHGLQWRWKH
PHUHRSHUDWLRQRIQHDWODZV7KH<RXHPHUJHVDVDGHHSLQWHUSOD\RIPDQ\
6HOYHV
,QWRWKHVKDUHGPLQGVSDFHRIWKHWKUHH9ROWDLUHVHQW

&RPSOH[QRQOLQHDUIHHGEDFNV\VWHPVDUHXQSUHGLFWDEOHHYHQLIWKH\DUH
GHWHUPLQLVWLF7KHLQIRUPDWLRQSURFHVVLQJFDSDFLW\QHHGHGWRSUHGLFWDVLQJOH
PLQGLVODUJHUWKDQWKHFRPSOH[LW\RIWKHZKROHXQLYHUVHLWVHOI&RPSXWLQJWKH
QH[WHYHQWWDNHVORQJHUWKDQWKHHYHQWLWVHOI3UHFLVHO\WKLVIHDWXUHZULWWHQ
LQWRWKHWH[WXUHRIWKHXQLYHUVHPDNHVLWDQGXVIUHH
+DULUHSOLHGZLWK

3DUDGR[+RZGRHVWKHHYHQWLWVHOINQRZKRZWRKDSSHQ"
2QO\DPDVVLYHFRPSXWHUFRXOGGHVFULEHWKHQH[WWLQ\ZKRUOLQDVWUHDP
:KDWPDNHVUHDOV\VWHPVHYHQDEOHWRFKDQJH"

9ROWDLUHVKUXJJHGDGLIILFXOWJHVWXUHIRUDELUG
$WODVW\RXKDYHHQFRXQWHUHGDQDJHQF\\RXFDQQRWGLVPLVV-RDQVDLG
SURXGO\
9ROWDLUHVKHDGMHUNHGZLWKVXUSULVH<RXU&UHDWRU"
<RXUHTXDWLRQVGHVFULEHZHOOHQRXJK%XWZKDWJLYHVWKHVHHTXDWLRQV
VKHKHVLWDWHGDWWKHZRUGILUH"
<RXLPSO\D0LQGZKLFKGRHVWKHXQLYHUVDOFRPSXWDWLRQ"
1R\RXGR
+DULVDLG)DLUHQRXJKDVDK\SRWKHVLV%XWZK\VKRXOGVXFKD0LQG
FDUHDZKLW IRUXVPHUHPRWHV"
+HFDUHGHQRXJKWRPDNH\RXFRPHRXWRIWKHPDWUL[RIPDWWHUGLG+H
QRW"
$KRULJLQV9ROWDLUHVDLGFDWFKLQJDQXSGUDIW+HORRNHGUHOLHYHGWR
EHRQVXUHULQWHOOHFWXDOJURXQG3ODLQO\KHUSRLQWKDGUDWWOHGKLP
,QVROXEOHRIFRXUVH,SUHIHUWRGHDOZLWKRXUPRUDOLWLHV
-RDQVDLGSULPO\0RUDOLW\LVQRWGHSHQGHQWXSRQXV
9ROWDLUHVKRWEDFN1RQVHQVH:HHYROYHGZLWKPRUDOVVKDSHGE\WKH
XQLYHUVHE\D&UHDWRULI\RXZLVK
+DULDVNHG<RXPHDQE\HYROXWLRQ"7KHSDQV
-RDQFULHG,QGHHG+ROLQHVVVKDSHVWKHZRUOGWKHZRUOGVKDSHVXV
+DULORRNHGGRXEWIXO-RDQSOHDVHG9ROWDLUHVDLGZU\O\0\PDWKLVW
ZRXOG\RXUDWKHUEHOLHYHWKDWPRUDOFRQVWUDLQWVHPHUJHDVDVSRQWDQHRXVRUGHU

IURPUDWLRQDOXWLOLW\PD[LPL]LQJEHKDYLRU"7UXO\"
+DULEOLQNHG:HOOQR
,TXRWHGRQHRI\RXURZQSDSHUV:KDW\RXYHIRUJRWWHQVLULVWKDW
RXUHQGOHVVPRGHOVRIWKHZRUOGVKDSHKRZZHORRNDWKXPDQH[SHULHQFH
2IFRXUVHEXW
$QGWKHPRGHOVDUHDOOWKDWZHNQRZ
+DULVXGGHQO\VPLOHG,OLNHWKDW'RQWJHWPDUULHGWRDPRGHO+H
DOORZHGKLPVHOIWRPRUSKVOLJKWO\JURZLQJWDOOHUPRUHPXVFXODU,GRQW
NQRZZK\EXW,IHHOEHWWHU
<RXUVRXOKDVFRPHWRWHUPVZLWK\RXUDFWLRQV-RDQVDLG
9ROWDLUH VDLG,ZRXOGSUHIHUVHOYHVWRVRXOEXWOHWXVQRW
TXLEEOH
6XGGHQO\+DULIHOWFDWHJRULHVVKLIWLQKLVPLQG+HKDGDUUDQJHGIRUWKH
UHYLYDORIWKHVHVLPVJXLGHGE\SXUHLQWXLWLRQ1RZFDPHWKHSD\RIIWKH\KDG
LQDGYHUWHQWO\GLVFRYHUHGWKHVWHSKHZDQWHG7KHPLQGLVDVHOIRUJDQL]LQJ
VWUXFWXUHDQGVRLVWKH(PSLUH,FDQZRUNEDFNDQGIRUWKEHWZHHQWKRVH
PRGHOV,PSRUW\RXUNQRZOHGJHRIVXEVHOYHVXVHLWWRDQDO\]HKRZWKH(PSLUH
OHDUQV
9ROWDLUHEOLQNHG:KDWDPDUYHORXVLGHD
+DULVDLG:DLWOO,VKRZ\RX7KH(PSLUHLVVHOIOHDUQLQJZLWK
VXEXQLWV
,ZRQGHULIWKHDOLHQIRJNQRZVWKLV"-RDQDVNHG
+DULIURZQHG,GRQRWZDQWWRLQYROYHWKHP0\HTXDWLRQVFDQQRWGHDO
ZLWKHOHPHQWVRIXQNQRZQ
7KH\DUHDOUHDG\LQYROYHG-RDQVDLG7KH\DUHKHUHDOODURXQGXV
+DULVLJKHG,KRSHZHFDQNHHSWKHPKHUHLQWKH
=RR-RDQVDLGGU\O\
7KXQGHUKHDGVURLOHGRYHUWKHKRUL]RQVFORVLQJIDVW
<RXNLOOHGURERWV+DULVKRXWHGLQWRWKHJDOH7KDWZDVQRWLQRXU
EDUJDLQ
>:(','1276$<:(:28/'5()5$,1@
<RXWRRNPRUHWKDQZHDJUHHG/LYHVRI
>7(50620,77('&$1127%(35(680('8321@
7KHURERWVDUHDVHSDUDWHNLQG2IKLJKLQWHOOLJHQFH
><2850(5(7,.72.6&28/'.,//7+(07+28*+@
><286(/'21','1272:17+(6(0$&+,1(6@
>$1'7+86+$9(12',6387(:,7+86@
+DULJURXQGKLVWHHWKDQGIXPHG
>025(,03257$170$77(56%(&.21@
<RXUUHZDUGV"+DULDVNHGELWWHUO\<RXYHFRPHIRUWKHP"
>:(6+$//12767$<+(5(@
>)257+,63/$&(,6'220('@
+DULVWDJJHUHGXQGHUDKDLOVWRUPRIELWLQJFROG7UDQWRU"
>$1'08&+(/6(@
:KDWGR\RXZDQW"
>285'(6,5(''(67,1<,672)/2$7$021*7+(63,5$/$506@
>$1'/,1*(5/21*$021*7+(3/80(62)*$/$&7,&&(17(5@
+DULUHPHPEHUHGWKHVWUXFWXUHVWKHUHWKHFRPSOH[ZHDYHRIOXPLQRVLWLHV
<RXFDQGRWKDW"
>:(+$9($6325(67$7(@
>620(2)86/,9('7+,6:$<%()25(@
>7268&+$67$7(:(:,6+725(7851@
>(/6(:(6+$//(;7,1*8,6+$//<28552%276@
7KDWZDVQWSDUWRIRXUGHDO+DULVKRXWHG+DUGFROGUDLQKDPPHUHG
KLPEXWKHWXUQHGKLVIDFHWRFRQIURQWWKHWRZHULQJDQJU\FORXGVDQGWKHLU
VNLUWVRIZUDWKIXOOLJKWQLQJ
>+2:&$1<28672386"@

>7+28*+,7:28/''(3/(7(285&$3$&,7,(6@
>:(&28/'%5,1*75$17257267$59$7,21@
+DULJULPDFHG+HZDVOHDUQLQJDORWDERXWSRZHUTXLWHTXLFNO\$OO
ULJKW,OOVHHWKDWUHVHDUFKJHWVGRQHRQKRZWRWUDQVIHU\RXWRSK\VLFDO
IRUP7KHUHDUHWKRVH,NQRZZKRFDQGRLW0DUTDQG6\E\ONQRZKRZWRNHHS
TXLHWWRR
9ROWDLUHDVNHG:K\GR\RXZLVKWRH[LWVWDJHOHIWZLWKVXFKXQVHHPO\
KDVWH"
>$1(:%586+),5(,6&20,1*@
>72+80$16$&52667+(63,5$/@
>:(6+$//:$7&+7+,6)$//@
>$66325(6)520*$/$&7,&&(17(5@
>7+(5(121(&$1+85786121(&$1:(+857@
$JOLWWHULQJFU\VWDOZLWKVKDUSVSLNHVPDWHULDOL]HGEHQHDWKWKHSXUSOLQJ
VN\,QDGDWDGROORS+DULOHDUQHGRIWKHDOLHQWHFKQRORJ\ZKLFKKDGRQFH
PDGHWKHVHVWDEOHUXJJHGFRPSDUWPHQWVIRUGLJLWDOLQWHOOLJHQFHV
>75$1725:$621&(7+(,'($/3/$&()2586@
>5,&+,15(6285&(6@
>12025(,67+,662@
>'$1*(5/85.6,17+(&20,1*,167$%,/,7<@
8PPP9ROWDLUHVDLG-RDQDQG ,PLJKWGHVLUHVXFKDQH[LWDVZHOO
:DLW\RXWZR+DULVDLGWDONLQJIDVW,I\RXZDQWWRJRZLWKWKHVH
WKHVHWKLQJVWROLYHLQDVHHGEHWZHHQWKHVWDUVWKHQ\RXKDYHWRHDUQLW
-RDQVFRZOHG+RZ"
)RUQRZ,FDQPDNHLWVDIHIRU\RXWR OLYHZLGHO\LQWKH0HVK,Q
UHWXUQKHJD]HGDQ[LRXVO\DWWKH9ROWDLUHHDJOHIODSSLQJLQEUDVV\
VSOHQGRU,ZDQW\RXWRKHOSPH
,ILWLVDKRO\FDXVHVXUHO\-RDQFDOOHG
,WLV+HOSPHOHDG,YHDOZD\VIHOWWKHUHVJRRGLQHYHU\ERG\7KH
MRERIDOHDGHULVWREULQJLWRXW
9ROWDLUHVDLG,I\RXWKLQNWKHUHLVJRRGLQHYHU\ERG\\RXKDYHQWPHW
HYHU\ERG\
%XW,PQRWDPDQRIWKHZRUOG6R,QHHG\RX
7RUXOH"-RDQDVNHG
([DFWO\,PQRWVXLWHGIRULW
9ROWDLUHVWRSSHGLQPLGDLUZLQJVVWLOOHG7KHSRVVLELOLWLHV:LWK
HQRXJKFRPSXWLQJVSDFHDQGVSHHGZHFDQHQGRZSURWR0LFKHODQJHORVZLWK
FUHDWLYHWLPH
,QHHGWRGHDOZLWKDORWRIZHOOSRZHUSUREOHPV<RXFDQJRRIILQWR
WKHVHVSRUHIRUPVZKHQ,PILQLVKHGZLWKSROLWLFV
9ROWDLUHDEUXSWO\FRQJHDOHGLQWRKXPDQIRUPWKRXJKVWLOOHOHJDQWO\
FORWKHGLQHOHFWULFEOXH8PPP3ROLWLFV,DOZD\VIRXQGLWHQWLFLQJ$JDPH
RIHOHJDQWLGHDVSOD\HGE\EXOOLHV
,YHJRWSOHQW\RIRSSRVLWLRQDOUHDG\+DULVDLGVREHUO\
)ULHQGVFRPHDQGJREXWHQHPLHVDFFXPXODWH9ROWDLUHVDLG,ZRXOG
OLNHWKDW
-RDQUROOHGKHUH\HV6DLQWVSUHVHUYHXV
3UHFLVHO\P\GHDU


+DULVDWEDFNDWKLVGHVN)LUVW0LQLVWHUEXWRQKLVWHUPV
,WKDGDOOZRUNHGRXW+HJRWWRZRUNKHUHVWLOOIDUIURPSDODFH
LQWULJXHV3OHQW\RIWLPHWRGRPDWK
+HZRXOGRIFRXUVHVSHDNE\'DQGKRORWRPDQ\$OOWKDWERWKHU
9ROWDLUHWRRNFDUHRI$IWHUDOO9ROWDLUHRU-RDQFRXOGPDVTXHUDGHDV+DULDW
WKHPDQ\FRQIHUHQFHVDQGPHHWLQJVQHFHVVDU\IRUD)LUVW0LQLVWHU'LJLWDOO\

WKH\FRXOGPRUSKWRKLPZLWKHDVH
-RDQHQMR\HGWKHYLUWXDOFHUHPRQLDOVHVSHFLDOO\LIVKHJRWWRKROG
IRUWKRQKROLQHVV9ROWDLUHORYHGLPLWDWLQJDQDQFLHQWPDQKHKDGDSSDUHQWO\
NQRZQD0U0DFKLDYHOOL<RXU(PSLUHKHKDGVDLGLVDYDVWUDPVKDFNOH
WKLQJRILQILQLWHQXDQFHDQGPXOWLSO\LQJVHOIGHOXVLRQV1HHGVORRNLQJDIWHU
,QEHWZHHQWKH\FRXOGH[SORUHWKHGLJLWDOUHDOPVODE\ULQWKVYDVWDQG
YLEUDQW$V9ROWDLUHKDGVDLGWKH\FRXOGEHRIIXSRQSRVWLQJVYDULRXVDQG
FDSHUVKLODULRXV
<XJRFDPHLQEXUVWLQJZLWKHQHUJ\7KH+LJK&RXQFLOMXVWSDVVHG\RXU
YRWHSURSRVDOV+DUL(YHU\'DKOLWHLQWKH*DOD[\VRQ\RXUVLGHQRZ
+DULVPLOHG+DYH9ROWDLUHPDNHDDSSHDUDQFHDVPH
5LJKWPRGHVWDQGFRQILGHQWWKDWOOZRUN
5HPLQGVPHRIWKHROGMRNHDERXWWKHSURVWLWXWH7KHUHJXODUFRVWVWKH
UHJXODUSULFHEXWVLQFHULW\LVH[WUD
<XJRODXJKHGXQFRQYLQFLQJO\DQGVDLGHGJLO\8KWKDWZRPDQVKHUH
1RW
+HKDGIRUJRWWHQXWWHUO\DERXWWKH$FDGHPLF3RWHQWDWH7KHRQHWKUHDWKH
KDGQRWQHXWUDOL]HG6KHNQHZDERXW'RUVDERXWURERWV
*LYLQJKLPQRWLPHWRWKLQNVKHVZHSWLQWRKLVRIILFH
6RKDSS\\RXFRXOGVHHPH3ULPDU\0LQLVWHU
:LVK,FRXOGVD\WKHVDPH
$QG\RXUORYHO\ZLIH",VVKHDERXW"
,GRXEWVKHZRXOGGHVLUHWRVHH\RX
7KH$FDGHPLF3RWHQWDWHVSUHDGKHUELOORZLQJUREHVDQGVDWZLWKRXW
LQYLWDWLRQ6XUHO\\RXGLGQWWDNHWKDWVPDOOMHVWRIPLQHVHULRXVO\"
0\VHQVHRIKXPRUGRHVQWLQFOXGHEODFNPDLO
:LGHH\HVDVOLJKWWRXFKRIRXWUDJHLQWKHWRQH,ZDVPHUHO\WU\LQJ
WRJDLQOHYHUDJHZLWK\RXUDGPLQLVWUDWLRQ
6XUH6XFKZHUH,PSHULDOPDQQHUVWKDWKHZRXOGQRWEULQJXSKHU
SRVVLEOHUROHLQ9DGGRVSORWRQ3DQXFRSLD
,ZDVFHUWDLQ\RXZRXOGJDLQWKHPLQLVWHUVKLS0\OLWWOHVDOO\ZHOO
SHUKDSVLWZDVLQSRRUWDVWH
9HU\
<RXDUHDPDQRIIHZZRUGVTXLWHDGPLUDEOH0\DOOLHVZHUHVR
LPSUHVVHGZLWK\RXUDKGLUHFWKDQGOLQJRIWKHWLNWRNFULVLVWKH/DPXUN
NLOOLQJV
6RWKDWZDVLW+HKDGVKRZQWKDWKHZDVQRWDQLPSUDFWLFDODFDGHPLF
'LUHFW"+RZDERXWUXWKOHVV"
2KQRZHGRQWWKLQNWKDWDWDOO<RXDUHULJKWWROHW6DUNEXUQ
RXWDV\RXVRHORTXHQWO\SXWLW'HVSLWHWKH*UH\VZDQWLQJWRMXPSLQDQG
ELQGXSZRXQGV9HU\ZLVHQRWUXWKOHVVQR
(YHQWKRXJK6DUNPLJKWQHYHUUHFRYHU"7KHVHZHUHWKHTXHVWLRQVKHKDG
DVNHGKLPVHOIWKURXJKVOHHSOHVVQLJKWV3HRSOHZHUHG\LQJWKDWWKH(PSLUH
PLJKWOLYHIRUDZKLOHORQJHU
6KHZDYHGWKLVDZD\$V,ZDVVD\LQJ,ZDQWHGDVSHFLDOUHODWLRQVKLS
ZLWKWKH)LUVW0LQLVWHUIURPRXUFODVVLQZHOOVRORQJ
/LNHPDQ\KHNQHZQRZVKHHPSOR\HGVSHHFKWRFRQFHDOWKRXJKWQRWWR
UHYHDOLW+HKDGWRVLWDQGHQGXUHVRPHRIWKLVKHNQHZ6KHUDWWOHGRQDQG
KHWKRXJKWDERXWKRZWRKDQGOHDNQRWW\WHUPLQWKHHTXDWLRQV+HKDGE\QRZ
PDVWHUHGWKHDUWRIVHHPLQJWRWUDFNZLWKH\HVPRXWKPRYHPHQWVDQGWKH
RFFDVLRQDOPXUPXU7KLVZDVH[DFWO\ZKDWDILOWHUSURJUDPGLGIRUKLV'DQG
KHFRXOGGRLWZLWKRXWWKLQNLQJDERXWWKHK\SRFULV\RIWKHZRPDQEHIRUHKLP
+HXQGHUVWRRGKHUQRZLQDZD\3RZHUZDVYDOXHIUHHIRUKHU+HKDGWR
OHDUQWRWKLQNWKDWZD\DQGHYHQDFWWKDWZD\%XWKHFRXOGQRWOHWLWDIIHFW
KLVWUXHVHOIWKHSHUVRQDOOLIHKHZRXOGUXWKOHVVO\VKHOWHU
+HILQDOO\JRWULGRIKHUDQGEUHDWKHGDVLJKRIUHOLHI3UREDEO\LWZDV
JRRGWREHVHHQDVUXWKOHVV7KDWIHOORZ1LPIRUH[DPSOHKHFRXOGKDYH1LP

IRXQGHYHQH[HFXWHGIRUSOD\LQJERWKVLGHVLQWKH$UWLILFH$VVRFLDWHV
PDWWHU
%XWZK\"0HUF\ZDV PRUHHIILFLHQW+DULVHQWDTXLFNQRWHWR6HFXULW\
GLUHFWLQJWKDW1LPEHIXQQHOHGLQWRDSURGXFWLYHVSRWEXWRQHZKHUHKLV
WDOHQWIRUEHWUD\DOZRXOGILQGQRDYHQXH/HWDQXQGHUOLQJILJXUHRXWZKHUH
DQGKRZ
+HKDGQHJOHFWHGEXVLQHVVDQGKDGRQHREOLJDWRU\UROHOHIWEHIRUHKH
FRXOGHVFDSH(YHQKHUHDW6WUHHOLQJKHFRXOGQRWDYRLGHYHU\,PSHULDOGXW\
$GHOHJDWLRQRI*UH\VILOHGLQ7KH\UHVSHFWIXOO\SUHVHQWHGWKHLU
DUJXPHQWVUHJDUGLQJFDQGLGDF\H[DPLQDWLRQVIRU(PSLUHSRVLWLRQV7HVWVFRUHV
KDGEHHQ GHFOLQLQJIRUVHYHUDOFHQWXULHVEXWVRPHDUJXHGWKDWWKLVZDV
EHFDXVHWKHSRRORIFDQGLGDWHVZDVEURDGHQLQJ7KH\GLGQRWPHQWLRQWKDWWKH
+LJK&RXQFLOKDGZLGHQHGWKHSRROEHFDXVHLWDSSHDUHGWREHGU\LQJXSWKDW
LVIHZHUZLVKHG,PSHULDOSRVLWLRQV
2WKHUVFODLPHGWKDWWKHWHVWVZHUHELDVHG7KRVHIURPODUJHSODQHWVVDLG
WKHLUKLJKHUJUDYLW\PDGHWKHPVORZHU7KRVHIURPOLJKWHUJUDYLWLHVKDGD
UHYHUVHDUJXPHQWZLWKGLDJUDPVDQGVKHHWVRIIDFWV
$OVRWKHP\ULDGHWKQLFDQGUHOLJLRXVJURXSVKDGFRQJHDOHGLQWRDQ
$FWLRQ)URQWZKLFKIHUUHWHGRXWELDVHVDJDLQVWWKHPLQWKHH[DPLQDWLRQV+DUL
FRXOGQRWIDWKRPDFRQVSLUDF\EHKLQGWKHH[DPLQDWLRQTXHVWLRQV+RZFRXOGRQH
VLPXOWDQHRXVO\GLVFULPLQDWHDJDLQVWVHYHUDOKXQGUHGRUHYHQDWKRXVDQG
HWKQLFVWUDLQV"
,WVHHPVDQLPPHQVHMREWRPHKHYHQWXUHGGLVFULPLQDWLQJDJDLQVWVR
PDQ\IDFWLRQV
9HKHPHQWO\D*UH\:RPDQKDQGVRPHDQGIRUFHIXOWROGKLPWKDWWKH
SUHMXGLFHZDVIRUDVRUWRI,PSHULDOQRUPDFRPPRQVHWRIYRFDEXODULHV
DVVXPSWLRQVDQGFODVV SXUSRVHV$OOWKHVHZRXOGVKRXOGHURWKHUVDVLGH
7RFRPSHQVDWHWKH$FWLRQ)URQWZDQWHGWKHXVXDOVHWRISUHIHUHQFHV
LQVWDOOHGZLWKVOLJKWVKDGLQJVEHWZHHQHDFKHWKQLFLW\WRFRPSHQVDWHIRUWKHLU
ORZHUSHUIRUPDQFHRQH[DPLQDWLRQV
7KLVZDVRUGLQDU\DQG+DULUXOHGLWRXWZLWKRXWKDYLQJWRWKLQNDERXWLW
YHU\PXFKWKLVDOORZHGKLPWRPXOORYHUWKHSV\FKRKLVWRU\HTXDWLRQVDZKLOH
7KHQDQHZQRWHFDXJKWKLVDWWHQWLRQ
7RGLVSHOWKHFRPPRQPLVSHUFHSWLRQWKDWVFRUHVZHUHEHLQJXQGHUPLQHG
E\VRPHHWKQLFZRUOGVLQFUHDVHGSDUWLFLSDWLRQWKH$FWLRQ)URQWSHWLWLRQHG
KLPWRUHQRUPWKHH[DPLQDWLRQLWVHOI6HWWKHDYHUDJHVFRUHDWWKRXJK
LQIDFWLWKDGGULIWHGGRZQZDUGRYHUWKHODVWWZRFHQWXULHVWR
7KLVZLOOSHUPLWFRPSDULVRQRIFDQGLGDWHVEHWZHHQ\HDUVZLWKRXWKDYLQJ
WRORRNXSHDFK\HDUVDYHUDJHWKHEXUO\ZRPDQSRLQWHGRXW
7KLVZLOOJLYHDV\PPHWULFGLVWULEXWLRQ"+DULDVNHGDEVHQWO\
<HVDQGZLOOVWRSWKHLQYLGLRXVFRPSDULVRQRIRQH\HDUZLWKWKHQH[W
:RQWVXFKDVKLIWRIWKHPHDQORVHGLVFULPLQDWRU\SRZHUDWWKHXSSHU
HQGRIWKHGLVWULEXWLRQ"+HQDUURZHGKLVH\HV
7KDWLVUHJUHWWDEOHEXW\HV
,WVDZRQGHUIXOLGHD+DULVDLG
6KHVHHPHGVXUSULVHG:HOOZHWKLQNVR
:HFDQGRWKHVDPHIRU WKHKROREDOODYHUDJHV
:KDW",GRQW
6HWWKHVWDWLVWLFVVRWKDWWKHDYHUDJHKLWWHUVWULNHVUDWKHUWKDQ
WKHKDUGWRUHPHPEHURIWKHSUHVHQW
%XW,GRQWWKLQNDSULQFLSOHRIVRFLDOMXVWLFH
$QGWKHLQWHOOLJHQFHVFRUHV7KRVHQHHGWREHUHQRUPHGDVZHOO,FDQ
VHHWKDW$JUHHG"
:HOO,PQRWVXUH)LUVW0LQLVWHU:HRQO\LQWHQGHG
1RQRWKLVLVDELJLGHD,ZDQWDWKRURXJKORRNDWDOOSRVVLEOHUH
QRUPLQJDJHQGDV<RXKDYHWRWKLQNELJ
:HDUHQWSUHSDUHG

7KHQJHWSUHSDUHG,ZDQWDUHSRUW1RWDVNLPS\RQHHLWKHU$IDW
IXOOUHSRUW7ZRWKRXVDQGSDJHVDWOHDVW
7KDWZRXOGWDNH
+DQJWKHH[SHQVH$QGWKHWLPH7KLVLVWRRLPSRUWDQWWRUHOHJDWHWR
WKH,PSHULDO([DPLQDWLRQV/HWPHKDYHWKDWUHSRUW
,WZRXOGWDNH\HDUVGHFDGHV
7KHQWKHUHVQRWLPHWRZDVWH
7KH$FWLRQ)URQWGHOHJDWLRQOHIWLQFRQIXVLRQ+DULKRSHGWKH\ZRXOG
PDNHLWDYHU\ELJUHSRUWLQGHHGVRWKDWKHZDVQRORQJHU)LUVW0LQLVWHU
ZKHQLWDUULYHG
3DUWRIPDLQWDLQLQJWKH(PSLUHLQYROYHGXVLQJLWVRZQLQHUWLDDJDLQVW
LWVHOI6RPHDVSHFWVRIWKLVMREKHWKRXJKWFRXOGEHDFWXDOO\HQMR\DEOH
+HUHDFKHG9ROWDLUHEHIRUHOHDYLQJWKHRIILFH+HUHV\RXUOLVWRI
LPSHUVRQDWLRQV
,PXVWVD\,DPKDYLQJWURXEOHKDQGOLQJDOOWKHIDFWLRQV9ROWDLUH
VDLG+HSUHVHQWHGDVDVZDLQLQHOHJDQWYHOYHW%XWWKHFKDQFHWRYHQWXUH
RXWWREHDSUHVHQFHLWLVOLNHDFWLQJ$QG,ZDVDOZD\VRQHIRUWKHVWDJH
DV\RXNQRZ
+DULGLGQWEXWKHVDLG7KDWVGHPRFUDF\IRU\RXVKRZEXVLQHVVZLWK
GDJJHUV$PRQJUHOEUHHGRIJRYHUQPHQW(YHQLILWLVDELJVWDEOHDWWUDFWRU
LQWKHILWQHVVODQGVFDSH
5DWLRQDOWKLQNHUVGHSORUHWKHH[FHVVHVRIGHPRFUDF\LWDEXVHVWKH
LQGLYLGXDODQGHOHYDWHVWKHPRE9ROWDLUHVPRXWKIODWWHQHGLQWRD
GLVDSSURYLQJOLQH7KHGHDWKRI6RFUDWHVZDVLWVILQHVWIUXLW
$IUDLG,GRQWJREDFNWKDWIDU+DULVDLGVLJQLQJRII(QMR\WKH
ZRUN


+HDQG'RUVZDWFKHGWKHJUHDWOXPLQRXVVSLUDOWXUQEHQHDWKWKHPLQLWV
HWHUQDOQLJKW
,GRDSSUHFLDWHVXFKSHUNVVKHVDLGGUHDPLO\7KH\VWRRGDORQHEHIRUH
WKHVSHFWDFOH:RUOGVDQGOLYHVDQGVWDUVDOOOLNHFUXVKHGGLDPRQGVWKURZQ
DJDLQVWHWHUQDOEODFNQHVV
*HWWLQJLQWRWKHSDODFHMXVWWRORRNDWWKH(PSHURUVGLVSOD\URRPV"
+HKDGRUGHUHGDOOWKHKDOOVFOHDUHG
*HWWLQJDZD\IURPVQRRSHUVDQGHDYHVGURSSHUV
<RX\RXKDYHQWKHDUGIURP"
6KHVKRRNKHUKHDG'DQHHOSXOOHGQHDUO\DOOWKHUHVWRIXVRII
7UDQWRU+HVD\VOLWWOHWRPH
,PSUHWW\GDPQVXUHWKHDOLHQPLQGVZRQWVWULNHDJDLQ7KH\UHDIUDLG
RIURERWV,WWRRNPHDZKLOHWRVHHWKDWOD\EHKLQGWKHLUWDONDERXW
UHYHQJH
0LQJOHGKDWHDQGIHDU9HU\KXPDQ
6WLOO,WKLQNWKH\YHKDGWKHLUUHYHQJH7KH\VD\WKH*DOD[\ZDVOXVK
ZLWKOLIHEHIRUHZHFDPH7KHUH DUHF\FOHVRIEDUUHQHUDVWKHQOX[XULDQW
RQHV'RQWNQRZZK\$SSDUHQWO\WKDWVKDSSHQHGVHYHUDOWLPHVEHIRUHDW
LQWHUYDOVRIDWKLUGRIDELOOLRQ\HDUVJUHDWGLHEDFNVRILQWHOOLJHQWOLIH
OHDYLQJRQO\VSRUHV1RZWKH\YHFRPHWRRXU0HVKDQGEHFRPHGLJLWDOIRVVLOV
)RVVLOVGRQWNLOOVKHVDLGVDUGRQLFDOO\
1RWDVZHOODVZHGRDSSDUHQWO\
1RW\RXXV
7KH\GRKDWH\RXURERWV1RWWKDWWKH\KDYHDQ\ORYHRIKXPDQVDIWHU
DOOZHPDGH\RXORQJDJR:HUHWREODPH
7KH\DUHVRVWUDQJH
+HQRGGHG,EHOLHYHWKH\OOVWD\LQWKHLUGLJLWDOSUHVHUYHXQWLO0DUT
DQG6\E\OFDQJHWWKHPWUDQVSRUWHGLQWRWKHLUDQFLHQWVSRUHVWDWH7KH\RQFH

OLYHGWKDWZD\IRUORQJHUWKDQWKH*DOD[\WDNHVWRPDNHDURWDWLRQ
<RXUSUHWW\GDPQVXUHLVQWJRRGHQRXJKIRU'DQHHOVKHVDLG+H
ZDQWVWKHPH[WHUPLQDWHG
,WVDVWDQGRII,I'DQHHOJRHVDIWHUWKHPKHOOKDYHWRSXOOWKHSOXJ
RQ7UDQWRUV0HVK7KDWZLOOZRXQGWKH(PSLUH6RKHVVWXFNIXPLQJEXW
LPSRWHQW
,KRSH\RXKDYHHVWLPDWHGWKHEDODQFHSURSHUO\VKHVDLG
$JOLPPHULQJJRVVDPHUWKRXJKWIOLWWHGDFURVVKLVPLQG7KHWLNWRN
DWWDFNVXSRQWKH/DPXUNIDFWLRQKDGGLVFUHGLWHGWKHPLQSXEOLFRSLQLRQ1RZ
WKH\ZRXOGEHVXSSUHVVHGWKURXJKRXWWKH*DOD[\$QGLQWLPHWKHPHPHPLQGV
ZRXOGOHDYH7UDQWRU
+DULIURZQHG'DQHHOVXUHO\ZDQWHGERWKWKHVHRXWFRPHV
+HKDGXQGRXEWHGO\VXVSHFWHGWKDWWKHPHPHPLQGVKDGVXUYLYHGSHUKDSV
WKDWWKH\ZHUHLQDFWLRQRQ7UDQWRU6RFRXOG+DULVDPDWHXUPDQHXYHULQJV
LQFOXGLQJWKH/DPXUNPXUGHUVKDYHEHHQGHIWO\FRQMXUHGXSE\'DQHHO"&RXOGD
URERWVRDFFXUDWHO\SUHGLFWZKDWKH+DULZRXOGGR"
$FKLOOUDQWKURXJKKLP6XFKDELOLW\ZRXOGEHEUHDWKWDNLQJ6XSHUKXPDQ
:LWKWLNWRNVQRZVRRQWREHVXSSUHVVHG7UDQWRUZRXOGKDYHWURXEOH
SURGXFLQJLWV RZQIRRG7DVNVRQFHGRQHE\PHQZRXOGKDYHWREHUHOHDUQHG
WDNLQJJHQHUDWLRQVWRHVWDEOLVKVXFKODERUHUVDVDVRFLDOO\YDOXHGJURXS
DJDLQ0HDQZKLOHGR]HQVRIRWKHUZRUOGVZRXOGKDYHWRVHQG7UDQWRUIRRGD
OLIHOLQHVOHQGHUDQGYXOQHUDEOH'LG'DQHHOLQWHQGWKDWWRR"7RZKDWHQG"
+DULIHOWXQHDV\+HVHQVHGVRFLDOIRUFHVDWZRUNMXVWEH\RQGKLVYLHZ
:DVVXFKDGURLWWKLQNLQJWKHSURGXFWRIPLOOHQQLDRIH[SHULHQFHDQG
KLJKSRVLWURQLFLQWHOOLJHQFH")RUMXVWDPRPHQW+DULKDGDYLVLRQRIDPLQG
ERWKVWUDQJHDQGPHDVXUHOHVVLQKXPDQWHUPV:DVWKDWZKDWDQLPPRUWDO
PDFKLQHEHFDPH"
7KHQKHSXVKHGWKHLGHDDZD\,WZDVWRRXQVHWWOLQJWRFRQWHPSODWH
/DWHUSHUKDSVZKHQSV\FKRKLVWRU\ZDVGRQH
+HQRWLFHG'RUVVWDULQJDWKLP:KDWKDGVKHVDLG"2K\HV
(VWLPDWLQJWKHEDODQFH\HV,PJHWWLQJWKHIHHOIRUWKHVHWKLQJV
:LWK9ROWDLUHDQG-RDQGRLQJWKHVFXWZRUNDQG<XJRQRZFKDLUPDQRIWKH
0DWKLVW'HSDUWPHQW,DFWXDOO\KDYHWLPHWRWKLQN
$QGVXIIHUIRROVJODGO\"
7KH$FDGHPLF3RWHQWDWH"$WOHDVW,XQGHUVWDQGKHUQRZ+HSHHUHGDW
'RUV'DQHHOVD\VKHZLOOOHDYH7UDQWRU+HVORVWDORWRIKLVKXPDQLIRUPV
'RHVKHQHHG\RX"
6KHORRNHGXSDWKLPLQWKHVRIWJORZ+HUH[SUHVVLRQZRUNHGZLWK
FRQIOLFW,FDQWOHDYH\RX
+LVRUGHUV"
0LQH
+HJULWWHGKLVWHHWK7KHURERWVZKRGLHG\RXNQHZWKHP"
6RPH:HWUDLQHGWRJHWKHUEDFNEDFNZKHQ
<RXGRQWKDYHWRFRQFHDODQ\WKLQJIURPPH,NQRZ\RXPXVWEHDWOHDVW
DFHQWXU\ROG
+HUPRXWKPDGHDQ2RIVXUSULVHWKHQTXLFNO\FORVHG+RZ"
<RXNQRZPRUHWKDQ\RXVKRXOG
6RGR\RXLQEHGDQ\ZD\6KHFKXFNOHG
,OHDUQHGLWIURPDSDQ,PHW
6KHODXJKHGEDZGLO\WKHQVREHUHG,PRQHKXQGUHGVL[W\WKUHH
:LWKWKHWKLJKVRIDWHHQDJHU,I\RXKDGWULHGWROHDYH7UDQWRU,G
KDYHEORFNHG\RX
6KHEOLQNHG7UXO\"
+HELWKLVOLSWKLQNLQJ:HOOQR
6KHVPLOHG0RUHURPDQWLFWRVD\\HV
,KDYHDKDELWRIKRQHVW\ZKLFK,GEHWWHUGURSLI,ZDQWWRVWD\
)LUVW0LQLVWHU

6R\RXZRXOGOHWPHJR"<RXVWLOOIHHOWKDW\RXRZHWKDWWR'DQHHO"
,IKHWKRXJKWWKHGDQJHUWR\RXZDVWKDWJUHDWWKHQ,ZRXOGKRQRUKLV
MXGJPHQW
<RXVWLOOUHVSHFWXVVR"
5RERWVZRUNVHOIOHVVO\IRUWKH(PSLUHDOZD\V)HZKXPDQVGR
<RXGRQWZRQGHUZKDWZHGLGWRHDUQWKHDOLHQVUHYHQJH"
2IFRXUVH'R\RXNQRZ"
6KHVKRRNKHUKHDGJD]LQJRXWDWWKHYDVWWXUQLQJGLVN6XQVRIEOXH
DQGFULPVRQDQG\HOORZVZHSWDORQJWKHLURUELWVDPLGGDUNGXVWDQGGLVRUGHU
,WZDVVRPHWKLQJDZIXO'DQHHOZDVWKHUHDQGKHZLOOQRWVSHDNRILW7KHUH
LVQRWKLQJLQRXUKLVWRU\RIWKLV,YHORRNHG
$QHPSLUHODVWLQJPDQ\PLOOHQQLDKDVPDQLIROGVHFUHWV+DULZDWFKHG
WKHVORZVSLQRIDKXQGUHGELOOLRQIODPLQJVWDUV,PPRUHLQWHUHVWHGLQLWV
IXWXUHLQVDYLQJLW
<RXIHDUWKDWIXWXUHGRQW\RX"
7HUULEOHWKLQJVDUHFRPLQJ7KHHTXDWLRQVVKRZWKDW
:HFDQIDFHWKHPWRJHWKHU
+HWRRNKHULQKLVDUPVEXWWKH\ERWKVWLOOZDWFKHGWKH*DOD[\V
VKLQLQJPDUYHOV,GUHDPRIIRXQGLQJVRPHWKLQJDZD\WRKHOSWKH(PSLUH
HYHQDIWHUZHUHJRQH
$QG\RXIHDUVRPHWKLQJWRRVKHVDLGLQWRKLVQHFN
+RZGLG\RXNQRZ"<HV,IHDUWKHFKDRVWKDWFRXOGFRPHIURPVRPDQ\
IRUFHVGLYHUJHQWYHFWRUWXUPRLODOODFWLQJ WREULQJGRZQWKHRUGHURIWKH
(PSLUH,IHDUIRUWKHYHU\+LVIDFHFORXGHG)RUWKHYHU\IRXQGDWLRQV
WKHPVHOYHV)RXQGDWLRQV
&KDRVFRPHV"
,NQRZZHRXUVHOYHVRXUPLQGVFRPHRXWRIVNDWLQJRQWKHLQQHUULPRI
FKDRVVWDWHV7KHGLJLWDOZRUOGVKRZVWKDW<RXVKRZWKDW
6KHVDLGVREHUO\,GRQRWWKLQNSRVLWURQLFPLQGVXQGHUVWDQGWKHPVHOYHV
DQ\EHWWHUWKDQKXPDQRQHV
:HRXUPLQGVDQGRXU(PSLUHERWKVSULQJIURPDQHPHUJHQWRUGHURI
LQQHUEDVLFDOO\FKDRWLFVWDWHVEXW
<RXGR QRWZDQWWKH(PSLUHWRFUDVKIURPVXFKFKDRV
,ZDQWWKH(PSLUHWRVXUYLYH2UDWOHDVWLILWIDOOVWRUHHPHUJH
+DULVXGGHQO\IHOWWKHSDLQRIVXFKYDVWPRYHPHQWV7KH(PSLUHZDVOLNH
DPLQGDQGPLQGVVRPHWLPHVZHQWFUD]\FUDVKHG$GLVDVWHUIRURQHVROLWDU\
PLQG+RZFRORVVDOO\ZRUVHIRUDQ(PSLUH
6HHQWKURXJKWKHSULVPRIKLVPDWKHPDWLFVKXPDQLW\ZDVRQDORQJPDUFK
SUHVVLQJIRUZDUGWKURXJKVXUURXQGLQJGDUN7LPHEDWWHUHGWKHPZLWKVWRUPV
UHZDUGHGWKHPZLWKVXQVKLQHDQGWKH\GLGQRWJOLPSVHWKDWWKHVHSDVVLQJ
VHDVRQVFDPHIURPWKHVKLIWLQJFDGHQFHVRIKXJHHWHUQDOHTXDWLRQV
5XQQLQJWKHHTXDWLRQVWLPHIRUZDUGWKHQEDFNZDUG+DULKDGVHHQ
KXPDQLW\VPRUWDOSDUDGHLQVQLSV6RPHKRZWKDWPDGHLWRGGO\WRXFKLQJ
6WHHSHGLQWKHLURZQHUDVIHZZRUOGVHYHUJOLPSVHGWKHURXWHDKHDG7KHUHZDV
QRVKRUWDJHRISRUWHQWRXVWDONRURIRDIVZKRSUHWHQGHGZLWKDZLQNDQGDQRG
WRIDWKRPWKHXQVHHDEOH0LVOHGZKROH=RQHVVWXPEOHGDQGIHOO
+HVRXJKWSDWWHUQVEXWEHQHDWKWKRVHYDVWVZHHSVOD\WKH VHHPLQJO\
LQILQLWHVLPDOOLYLQJSHRSOH$FURVVWKHUHDOPRIVWDUVXQGHUWKHODZVWKDW
UHLJQHGOLNHJRGVOD\LQQXPHUDEOHOLYHVLQWKHSURFHVVRIEHLQJORVW)RUWR
OLYHZDVWRORVHLQWKHHQG
6RFLDOODZVDFWHGDQGSHRSOHZHUHPDLPHGGDPDJHGUREEHG DQGVWUDQJOHG
E\IRUFHVWKH\FRXOGQRWHYHQJOLPSVH3HRSOHZHUHGULYHQWRVLFNQHVVWR
GHVSHUDWLRQWRORQHOLQHVVDQGIHDUDQGUHPRUVH6KDNHQE\WHDUVDQGORQJLQJ
LQDZRUOGWKH\IXQGDPHQWDOO\IDLOHGWRIDWKRPWKH\QRQHWKHOHVVFDUULHGRQ
7KHUHZDVQRELOLW\LQWKDW7KH\ZHUHIUDJPHQWVDGULIWLQWLPHPRWHVLQ
DQ(PSLUHULFKDQGVWURQJDQGIXOORISULGHDQRUGHUIDLOLQJDQGEDWWHUHGDQG
KROORZZLWKLWVRZQHPSWLQHVV

:LWKOHDGHQFHUWDLQW\+DULDWODVWVDZWKDWKHSUREDEO\ZRXOGQRWEH
DEOHWRUHVFXHWKHJUHDWUDPVKDFNOH(PSLUHDEHDVWRIILQHQXDQFHDQG
PXOWLSO\LQJVHOIGHOXVLRQV
1RVDYLRUKH%XWSHUKDSVKHFRXOGKHOS
7KH\ERWKVWRRGLQVLOHQFHIRUDORQJDFKLQJWLPH7KH*DOD[\WXUQHGLQ
LWVVORZPDMHVW\$QHDUE\IRXQWDLQVSHZHGJORULRXVDUFVLQWRWKHDLU7KH
ZDWHUVVHHPHGPRPHQWDULO\IUHHEXWLQIDFWZHUHWUDSSHGIRUHYHUZLWKLQWKH
VWHHOVNLHVRI7UDQWRU$VZDVKH
+DULIHOWDGHHSHPRWLRQKHFRXOGQRWGHILQH,WWLJKWHQHGKLVWKURDW
DQGPDGHKLPSUHVV'RUVWRKLP6KHZDVPDFKLQH DQGZRPDQDQGVRPHWKLQJ
PRUH$QRWKHUHOHPHQWKHFRXOGQRWIXOO\NQRZDQGKHFKHULVKHGKHUDOOWKH
PRUHIRUWKDW
<RXFDUHVRPXFK'RUVZKLVSHUHG
,KDYHWR
3HUKDSVZHVKRXOGWU\WRVLPSO\OLYHPRUHZRUU\OHVV
+HNLVVHGKHUIHUYHQWO\DQGWKHQODXJKHG
4XLWHULJKW)RUZKRNQRZVZKDWWKHIXWXUHPD\EULQJ"
9HU\VORZO\KHZLQNHGDWKHU
$)7(5:25'

7KH)RXQGDWLRQVHULHVEHJDQLQ:RUOG:DU,,DV$PHULFDDUFHGWRZDUGLWV
]HQLWKDVDZRUOGSRZHU7KHVHULHVSOD\HGRXWRYHUGHFDGHVDVWKH8QLWHG
6WDWHVGRPLQDWHGWKHZRUOGVPDWWHUVLQDIDVKLRQQRRWKHUQDWLRQHYHUKDG
<HWWKH)RXQGDWLRQLVDERXWLPSHULXPDQGGHFOLQH'LGWKLVEHWUD\DQDQ[LHW\
ERUQHYHQLQWKHPRPHQWRIDSSURDFKLQJJORU\"
,KDGDOZD\VZRQGHUHGLIWKLVZDVVR3DUWRIPHLWFKHGWRH[SORUHWKH
LVVXHVZKLFKODFHWKHVHULHV
7KHLGHDRIZULWLQJIXUWKHUQRYHOVLQWKH)RXQGDWLRQXQLYHUVHFDPHIURP
-DQHW$VLPRYDQGWKH$VLPRYHVWDWHVUHSUHVHQWDWLYH5DOSK9LFLQDQ]D
$SSURDFKHGE\WKHP,DWILUVWGHFOLQHGEHLQJEXV\ZLWKSK\VLFVDQGP\RZQ
QRYHOV%XWP\VXEFRQVFLRXVRQFHDURXVHGUHIXVHGWROHWJRWKHQRWLRQ$IWHU
KDOID\HDURIVWUXJJOLQJZLWKLGHDVSODLQO\PDGHIRUWKH)RXQGDWLRQ
SHUVLVWHQWO\GHPDQGLQJH[SUHVVLRQ,ILQDOO\FDOOHGXS5DOSK9LFLQDQ]DDQG
EHJDQSXWWLQJWRJHWKHUDSODQWRFRQVWUXFWDILWWLQJO\FRPSOH[FXUYHRIDFWLRQ
DQGPHDQLQJWREHUHYHDOHGLQVHYHUDOQRYHOV7KRXJKZHVSRNHWRVHYHUDO
DXWKRUVDERXWWKLVSURMHFWWKHEHVWVXLWHGVHHPHGWZRKDUG6)ZULWHUVEURDGO\
LQIOXHQFHGE\$VLPRYDQGRIXQFKDOOHQJHGWHFKQLFDODELOLW\*UHJ%HDUDQG
'DYLG%ULQ
%HDU%ULQDQG,KDYHNHSWLQFORVHWRXFKZKLOH,ZURWHWKLVILUVW
YROXPHIRUZHLQWHQGWRFUHDWHWKUHHVWDQGDORQHQRYHOVZKLFKQRQHWKHOHVV
FDUU\IRUZDUGDQRYHUDUFKLQJP\VWHU\WRLWVHQG(OHPHQWVRIWKLVPDNHWKHLU
ILUVWDSSHDUDQFHKHUHWRDPSOLI\IXUWKHUWKURXJK*UHJ%HDUV)RXQGDWLRQDQG
&KDRVILQGLQJFRPSOHWLRQ LQ%ULOOV7KLUG)RXQGDWLRQ 7KHVHDUHSUHOLPLQDU\
WLWOHV ,KDYHSODQWHGLQWKHQDUUDWLYHSUHILJXULQJGHWDLOVDQGNH\HOHPHQWV
ZKLFKVKDOOEHDUODWHUIUXLW
*HQUHVDUHFRQVWUDLQHGFRQYHUVDWLRQV&RQVWUDLQWLVHVVHQWLDOGHILQLQJ
WKHUXOHVDQGDVVXPSWLRQVRSHQWRDQDXWKRU,IKDUG6)RFFXSLHVWKHFHQWHURI
VFLHQFHILFWLRQWKDWLVSUREDEO\EHFDXVHKDUGQHVVJLYHVWKHILUPHVWERXQGDU\
6FLHQFHLWVHOI\LHOGVFULVSFRQILQHV
*HQUHVDUHDOVROLNHLPPHQVHGLVFXVVLRQVZLWKLGHDVGHYHORSHGWUDGHG
PXWDWHGWKHLUYDULDWLRQVVSXQGRZQWKURXJKWLPH3OD\HUVULQJFKDQJHVRQHDFK
RWKHUPRUHOLNHDVWHSSLQRXWMD]]EDQGWKDQDVRORFRQFHUWLQDSOXVK
DXGLWRULXP&RQWUDVWVHULRXVILFWLRQ PRUHDFFXUDWHO\GHVFULEHGLQP\H\HV
DVPHUHO\VHOIFRQVFLRXVO\VROHPQ ,WKDVFDQRQLFDOFODVVLFVWKDWVXSSRVHGO\
VWDQGRXWVLGHRIWLPHGHVHUYLQJDZHORRPLQJJUHDWDQGLQWDFWE\WKHPVHOYHV

0XFKRIWKHSOHDVXUHRIP\VWHULHVRIHVSLRQDJHQRYHOVRU6)OLHVLQ
WKHLQWHUDFWLRQRIZULWHUVZLWKHDFKRWKHUDQGSDUWLFXODUO\LQ6)VLQYHQWLRQ
RIIDQGRPZLWKWKHUHDGHUVDVZHOO7KLVLVQWDGHIHFWLWVWKHHVVHQWLDO
QDWXUHRISRSXODUFXOWXUHZKLFKWKH8QLWHG6WDWHVKDVGRPLQDWHGLQRXUDJH
ZLWKWKHLQYHQWLRQRIMD]]URFNWKHPXVLFDODQGZULWWHQJHQUHVVXFKDVWKH
:HVWHUQWKHKDUGERLOHGGHWHFWLYHPRGHUQIDQWDV\DQGRWKHUULFKDUHDV0DQ\
NLQGVRI6) KDUGXWRSLDQPLOLWDU\VDWLULFDO VKDUHDVVXPSWLRQVFRGH
ZRUGVOLQHVRIDUJXPHQWQDUUDWLYHYRLFHV)RQGUHPHPEUDQFHRIJROGHQDJH
$VWRXQGLQJDQGLWVOHWWHUFROXPQRIWKH1HZ:DYHRI+RUDFH*ROGV*DOD[\
WKHVHDUHHFKRHVRIGLVWDQWFRQYHUVDWLRQVHDUQHVWO\FDUULHGRXW
*HQUHSOHDVXUHVDUHPDQ\EXWWKLVTXDOLW\RIVKDUHGYDOXHVZLWKLQDQ
RQJRLQJGLVFXVVLRQPD\EHWKHPRVWSRZHUIXOHQOLVWLQJOLIHORQJGHYRWLRQLQ
LWVIDQV,QFRQWUDVWWRWKH*UDQG&DQRQYLHZRIJUHDWZRUNVVWDQGLQJOLNH
PRQROLWKVLQDGHVHUWHGODQGVFDSHJHQUHUHDGLQJVDWLVIDFWLRQVDUHDVWULNLQJ
IDFHWRIPRGHUQGHPRFUDWLF SRS FXOWXUHDVKDUHGPRYHPHQW
7KHUHDUHTXHVWLRQVDERXWKRZZULWHUVGHDOZLWKZKDWVRPHFDOOWKH
DQ[LHW\RILQIOXHQFHEXWZKLFK,GSUHIHUWRWHUPPRUHPLOGO\WKH
GLJHVWLRQRIWUDGLWLRQ
,PUHPLQGHGRI-RKQ%HUJHUVGHILQLWLRQRIKDFNZRUNGHVFULELQJRLO
SDLQWLQJLQ:D\VRI6HHLQJDVQRWWKHUHVXOWRIHLWKHUFOXPVLQHVVRU
SURYLQFLDOLVPLWLVWKHUHVXOWRIWKHPDUNHWPDNLQJPRUHLQVLVWHQWGHPDQGV
WKDQWKHDUW)DLUHQRXJKEXWWKLVFDQKDSSHQLQDQ\FRQWH[W:RUNLQJLQD
NQRZQUHJLRQRIFRQFHSWVSDFHGRHVQRWQHFHVVDULO\LPSO\WKDWWKHWHUULWRU\
KDVEHHQPLQHGRXW1RULVIUHVKJURXQGDOZD\VIHUWLOH
6XUHO\ZHVKRXOGQRWLFHWKDWDQRYHO+HPLQJZD\WKRXJKWWKHEHVWLQ
$PHULFDQOLWHUDWXUHLVDVHTXHOLQGHHGIROORZLQJRQDER\VERRN7RP
6DZ\HU
6KDULQJFRPPRQJURXQGLVQWRQO\DOLWHUDU\WUDGLWLRQ$UHZHWKURZQ
LQWRPRUDOFRQIXVLRQZKHQZHKHDU5KDSVRG\RQD7KHPHE\3DJDQLQL"'RZH
LQGLJQDQWO\PDUFKIURPWKHFRQFHUWKDOOZKHQDVVDXOWHGE\9DULDWLRQVRQD
7KHPHE\+D\GQ"6KDUHFURSSLQJE\WKH*UHDWV"6KRFNLQJ
5HLQVSHFWLQJWKHDVVXPSWLRQVDQGPHWKRGVRIFODVVLFDOZRUNVFDQ\LHOG
QHZIUXLW)UHVKQDUUDWLYHFDQERWKVWULNHRXWLQWRQHZWHUULWRU\ZKLOH
UHIOHFWLQJRQWKHODQGVFDSHRIWKHSDVW5HFDOOWKDW+DPOHWGUHZIURPVHYHUDO
HDUOLHUSOD\VDERXWWKHVDPHSORW
,VDDFKLPVHOIUHYLVLWHGWKH)RXQGDWLRQWDNLQJGLIIHUHQWDQJOHVRI
DWWDFNHDFKWLPH,QWKHEHJLQQLQJSV\FKRKLVWRU\HTXDWHGWKHPRYHPHQWVRI
SHRSOHDVDZKROHZLWKWKHPRWLRQVRIPROHFXOHV7KH6HFRQG)RXQGDWLRQORRNHG
DWSHUWXUEDWLRQVWRVXFKGHWHUPLQLVWLFODZV WKH0XOH DQGLPSOLHGWKDWRQO\D
VXSHUKXPDQHOLWHFRXOGPDQDJHLQVWDELOLWLHV/DWHUURERWVHPHUJHGDVWKH
HOLWHEHWWHUWKDQKXPDQVDWGLVSDVVLRQDWHJRYHUQPHQW%H\RQGURERWVFDPH
*DLDDQGVRRQ
,QWKLVWKUHHERRNVHULHVZHVKDOOUHLQVSHFWWKHUROHRIURERWVDQG
ZKDWSV\FKRKLVWRU\PLJKW ORRNOLNHDVDWKHRU\0RUHULIIVXSRQWKHEDVLF
WXQH
,KDGDOZD\VZRQGHUHGDERXWFUXFLDODVSHFWVRI$VLPRYV(PSLUH
:K\ZHUHWKHUHQRDOLHQVLQWKHJDOD[\":KDWUROHGLGFRPSXWHUVSOD\"
3DUWLFXODUO\YVURERWV"
:KDWGLGWKHWKHRU\RISV\FKRKLVWRU\DFWXDOO\ORRNOLNH"
)LQDOO\ZKRZDV+DUL6HOGRQDVDFKDUDFWHUDPDQ"
7KLVQRYHODWWHPSWVVRPHDQVZHUV,WLVP\FRQWULEXWLRQWRDGLVFXVVLRQ
DERXWSRZHUDQGGHWHUPLQLVPZKLFKKDVQRZVSDQQHGRYHUKDOIDFHQWXU\
2IFRXUVHZHNQRZVRPHLQFLGHQWDODQVZHUV7KHWHUPSV\FKRKLVWRU\ZDV
FRPPRQO\XVHGLQWKHWKLUWLHVDQGDSSHDUVLQWKH:HEVWHUV'LFWLRQDU\
,VDDFJUHDWO\H[WHQGHGLWVPHDQLQJWKRXJK+HGLGQWZDQWWRGHDOZLWK-RKQ
Z&DPSEHOOVQRWRULRXVGLVOLNHRIDOLHQVZKRPLJKWEHDVFOHYHUDVZHVRKLV

)RXQGDWLRQKDGQRQH%XWLWVHHPHGWRPHWKHUHPLJKWEHPRUHWRWKHPDWWHU
$VZHOO$VLPRYVXQLWLQJRIKLVURERWQRYHOVDQGWKH)RXQGDWLRQVHULHV
EHFDPHLQWULFDWHDQGSX]]OLQJ7KH%ULWLVKFULWLF%ULDQ6WDEOHIRUGIRXQGWKLV
FRPIRUWLQJLQLWVFODXVWURSKRELFHQFORVXUH7KHUHDUHQRURERWVLQWKHHDUO\
)RXQGDWLRQQRYHOVEXWWKH\DUHEHKLQGWKHVFHQHVPDQLSXODWRUVLQERWK3UHOXGH
WR)RXQGDWLRQDQG)RUZDUGWKH)RXQGDWLRQ
6RPHIRUPRIDGYDQFHGFRPSXWLQJPDFKLQHVPXVWXQGHUOLHWKH(PSLUH
VXUHO\,VDDFUHPDUNHGWKDW,MXVWSXWYHU\DGYDQFHGFRPSXWHUVLQWKHQHZ
)RXQGDWLRQQRYHODQGKRSHGWKDWQRERG\ZRXOGQRWLFHWKHLQFRQVLVWHQF\1RERG\
GLG$V-DPHV*XQQUHPDUNHG0RUHDFFXUDWHO\SHRSOHQRWLFHGEXWGLGQW
FDUH
$VLPRYZURWHHDFK QRYHODWWKHOHYHORIWKHWKHQFXUUHQWVFLHQWLILF
XQGHUVWDQGLQJ/DWHUZRUNVXSGDWHGWKHVXUURXQGLQJVFLHQFH7KXVKLVJDOD[\LV
PRUHGHWDLOHGLQODWHUERRNVLQFOXGLQJLQ)RXQGDWLRQV(GJHERWKDGYDQFHG
FRPSXWHUVDQGDEODFNKROHDWWKH*DODFWLF&HQWHU6LPLODUO\KHUH,KDYH
GHSLFWHGRXUPRUHGHWDLOHGNQRZOHGJHRIWKH*DODFWLF&HQWHU,QSODFHRI
,VDDFVK\SHUVSDFHVKLSV,KDYHXVHGZRUPKROHVZKLFKKDYHFRQVLGHUDEO\PRUH
WKHRUHWLFDOMXVWLILFDWLRQQRZWKDQWKH\GLGZKHQ(LQVWHLQDQG5RVHQLQWURGXFHG
WKHPLQWKHV,QGHHGZRUPKROHVDUHDOORZHGE\WKHJHQHUDOWKHRU\RI
UHODWLYLW\EXWPXVWKDYHH[WUHPHIRUPVRIPDWWHUWRIRUPDQGVXSSRUWWKHP
0DWW9LVVHUV/RUHQW]LDQ:RUPKROHVLVWKHVWDQGDUGZRUNRQFXUUHQWWKLQNLQJ

,VDDFZURWHPXFKRIKLVILFWLRQLQDVW\OHKHWHUPHGGLUHFWDQGVSDUH
WKRXJKLQWKHODWHUZRUNVKHUHOD[HGWKLVFRQVWUDLQWDELW,KDYHQRW
DWWHPSWHGWRZULWHLQWKH$VLPRYVW\OH 7KRVHZKRWKLQNLWLVHDV\WRZULWH
FOHDUO\DERXWFRPSOH[VXEMHFWVVKRXOGWU\LW )RUWKH)RXQGDWLRQQRYHOVKH
XVHGDSDUWLFXODUO\EDUHERDUGVDSSURDFKZLWKYLUWXDOO\QREDFNJURXQG
GHVFULSWLRQVRUQRYHOLVWLFGHWDLOV
1RWHKLVRZQUHDFWLRQZKHQKHGHFLGHGWRUHWXUQWRWKHVHULHVDQG
UHYLVLWHGWKHWULORJ\
,UHDGLWZLWKPRXQWLQJXQHDVLQHVV,NHSWZDLWLQJIRUVRPHWKLQJWR
KDSSHQDQGQRWKLQJHYHUGLG$OOWKUHHYROXPHVDOOWKHQHDUO\TXDUWHURID
PLOOLRQZRUGVFRQVLVWHGRIWKRXJKWVDQGFRQYHUVDWLRQ1RDFWLRQ1RSK\VLFDO
VXVSHQVH
%XWLWZRUNHGIDPRXVO\VR,FRXOGQRWPDQDJHVXFKDQDSSURDFKVRKDYH
WDNHQP\RZQZD\
,IRXQGWKDWWKHGHWDLOVRI7UDQWRURISV\FKRKLVWRU\DQGWKH(PSLUH
FDOOHGRXWWRPHDV,EHJDQWKLQNLQJDERXWWKLVQRYHOLQGHHGWKH\OHGPHRQ
P\VXEFRQVFLRXVTXHVWRIWKHXQGHUO\LQJVWRU\6RWKHERRNLVQRWDQLPLWDWLRQ
$VLPRYQRYHOEXWD%HQIRUGQRYHOXVLQJ$VLPRYVEDVLFLGHDVDQGEDFNGURS
1HFHVVDULO\P\DSSURDFKKDVKDUNHQHGEDFNWRWKHROGHUVWRU\WHOOLQJ
VW\OHVZKLFKSUHYDLOHGLQWKH6)RI,VDDFVGD\V,KDYHQHYHUUHVSRQGHG
IDYRUDEO\WRWKHUHFHQWUD]RULQJRIOLWHUDWXUHE\FULWLFVWKHWULEHVRI
VWUXFWXUDOLVWVSRVWPRGHUQLVWVGHFRQVWUXFWLRQLVWV7RPDQ\6)ZULWHUV
SRVWPRGHUQLVVLPSO\DVLJQDWXUHRIH[KDXVWLRQ,WVW\SLFDODSSDUDWXVVHOI
UHIHUHQFHKHDY\GROORSVRI REOLJDWRU\LURQ\VHOIFRQVFLRXVXVHRIROGHU
JHQUHGHYLFHVSDVWLFKHDQGSDURG\EHWUD\VODFNRILQYHQWLRQRIWKHFUXFLDO
FRLQRI6)LPDJLQDWLRQ6RPHGHFRQVWUXFWLRQLVWVKDYHDWWDFNHGVFLHQFHLWVHOI
DVPHUHUKHWRULFQRWDQRUGHULQJRIQDWXUHVHHNLQJWRUHGXFHLWWRWKH
VWDWXVRIWKHXOWLPDWHO\DUELWUDU\KXPDQLWLHV0RVW6)W\SHVILQGWKLVDWWDFN
RQHPSLULFLVPDZRUQROGVRQJZLWKQHZO\ULFVTXLWHTXDLQWO\UHWUR
$WWKHFRUHRI6)OLHVWKHH[SHULHQFHRIVFLHQFH7KLVPDNHVWKHJHQUH
ILQDOO\KRVWLOHWRVXFKIDVKLRQVLQFULWLFLVPIRULWYDOXHVLWVHPSLULFDO
JURXQG'HFRQVWUXFWLRQLVPVVWUHVVRQFRQWUDGLFWRU\RUVHOIFRQWDLQHGLQWHUQDO
GLIIHUHQFHVLQWH[WVUDWKHUWKDQWKHLUOLQNWRUHDOLW\RIWHQPHUHO\OHDGVWR
OLWHUDWXUHVHHQDVHPSW\ZRUGJDPHV
6)QRYHOVJLYHXVZRUOGVZKLFKDUHQRWWREHWDNHQDVPHWDSKRUVEXWDV

UHDO:HDUHDVNHGWRSDUWLFLSDWHLQZUHQFKLQJO\VWUDQJHHYHQWVQRWPHUHO\
ZDWFKWKHPIRUFOXHVWRZKDWWKH\UHUHDOO\WDONLQJDERXW 8PPPLIWKLV
VWDQGVIRUWKDWWKHQWKHRWKHUVWXIIPXVWVWDQGIRU1RWDZD\WRJDWKHU
QDUUDWLYHPRPHQWXP 7KH0DUVDQGVWDUVDQGGLJLWDOGHVHUWVRIRXUEHVWQRYHOV
DUHILQDOO\WREHWDNHQDVUHDODVLIWRVD\/LIHLVQWOLNHWKLVLWLV
WKLV-RXUQH\VFDQJRWRIUHVKSODFHVQRWPHUHO\UHWXUQXVWRRXUVHOYHV
(YHQVR,YHLQGXOJHGP\VHOIDELWLQWKHVDWLULFDOVFHQHVGHSLFWLQJDQ
DFDGHPLDJRLQJRIIWKHUDLOVEXW,IHHO,VDDFZRXOGKDYHDSSURYHGRIP\
WDUJHWV5HDGHUVWKLQNLQJ,YHJRQHRYHUERDUGLQGHSLFWLQJWKHYLHZWKDW
VFLHQFHGRHVQRWGHDOZLWKREMHFWLYHWUXWKVEXWLQVWHDGLVDEDWWOHJURXQGRI
SRZHUSROLWLFVZKHUHQD,YHUHDOLVPPHHWVUHODWLYLVWZRUOGYLHZVVKRXOGORRN
LQWR7KH*ROHPE\+DUU\&ROOLQVDQG7UHYRU3LQFK7KLVERRNDWWHPSWVWR
SRUWUD\VFLHQWLVWVDVQRPRUHWKHKROGHUVRIREMHFWLYHNQRZOHGJHWKDQDUH
ODZ\HUVRUWUDYHODJHQWV
7KHUHFHQWUHQRUPLQJRIWKH6FKRODVWLF$SWLWXGH7HVWVVRWKDWHDFK
\HDUWKHDYHUDJHLVIRUFHGWRWKHVDPHQXPEHUWKXVPDVNLQJWKHGHFOLQHRI
DELOLW\LQVWXGHQWV,VDWLUL]HLQWKHYHU\ODVWSDJHVRIWKHQRYHO,KRSH
,VDDFZRXOGKDYHJRWWHQDFKXFNOHIURPVHHLQJWKHLVVXHIUDPHGDJDLQVWDQ
HQWLUHJDOD[\
)URP9HUQHDQG:HOOVWRVRPHZKHUHQHDUVFLHQFHILFWLRQZDVPRVWO\
DERXWWKHZRQGHUVRIPRYHPHQWRIWUDQVSRUWDWLRQ1RWHWKHLQQXPHUDEOHQRYHOV
ZLWKWKHZRUGVWDULQWKHLUWLWOHVHYRNLQJIDUGHVWLQDWLRQVDQGVWRULHVVXFK
DV5REHUW+HLQOHLQV7KH5RDGV0XVW5ROO
%XWLQWKHSDVWIHZGHFDGHVZHKDYHIRFXVHGPRUHRQWKHZRQGHUVRI
LQIRUPDWLRQRIWUDQVIRUPDWLRQVDWOHDVWSDUWO\LQWHUQDOQRW H[WHUQDO7KH
,QWHUQHWYLUWXDOUHDOLW\FRPSXWHUVLPXODWLRQVDOOWKHVHORRPODUJHLQRXU
YLVLRQVRIRXUIXWXUHV7KLVQRYHODWWHPSWVWRFRPELQHWKHVHWZRWKHPHVZLWK
VHYHUDOFRQVSLFXRXVVFHQHVDERXWWUDYHODQGDODUJHUEDFNJURXQGPRWLIRQ
FRPSXWHUV
$V-DPHV*XQQQRWHGWKH)RXQGDWLRQVHULHVLVDVDJD,WVPHWKRGOLHVLQ
DUHSHDWHGSDWWHUQ2XWRIWKHVROXWLRQRIHDFKSUREOHPJURZVWKHQH[WSUREOHP
WREHVROYHG7KLVEHFDPHRIFRXUVHDFRQVLGHUDEOHFRQVWUDLQWRQODWHU
QRYHOV$VLPRYVHHPHGWREHVD\LQJWKDWOLIHZDVDVHULHVRISUREOHPVWREH
VROYHGEXWOLIHLWVHOIFRXOGQHYHUEHVROYHG$V*XQQUHPDUNHGFRQVLGHULQJ
WKDWWKHFRPELQHGDQGLQWHJUDWHG)RXQGDWLRQDQG5RERWVDJDQRZFRYHUVVL[WHHQ
ERRNVSHUKDSVDGLUHFWRU\RILWDOOLVFDOOHGIRUQDPHGSHUKDSV
(QF\FORSHGLD*DODFWLFD"
*DODFWLFHPSLUHVEHFDPHDPDLQVWD\IUDPHIRUVFLHQFHILFWLRQ3RXO
$QGHUVRQV)ODQGU\QRYHOVDQG*RUGRQ5'LFNVRQ LQKLV'RUVDLVHULHV 
SDUWLFXODUO\VWXGLHGWKHVRFLRSROLWLFDOVWUXFWXUHRIVXFKYDVWFRPSOH[HVIRU
D SRZHUIXODXWRFUDWLFLPSHULDOV\VWHPGHPDQGVJUHDWRUJDQL]DWLRQDOVNLOOWKH
SULPDU\DVVHWRIWKH5RPDQVWKHPVHOYHV
,VDDFZDVQRWDOZD\VFRQVLVWHQWLQKLVQXPEHUV+RZPDQ\GZHOORQ
7UDQWRU"8VXDOO\KHVD\VIRUW\ELOOLRQEXWLQ6HFRQG)RXQGDWLRQLWLV 
ELOOLRQ XQOHVVWKDWVDW\SR 6SUHDGIRUW\ELOOLRQRYHUDQ(DUWKVL]HGZRUOG
ZLWKDOOLWVVHDVGUDLQHG DQGWKDWVRQO\DERXWDKXQGUHGSHUVTXDUH
NLORPHWHU6XUHO\KRXVLQJWKHPZRXOGQRWGHPDQGDKDOINLORPHWHUGHHSFLW\
'DWHVDOVRJHWGLIILFXOWWRIROORZDFURVVVXFKLPPHQVLWLHVRIWLPH
7UDQWRULVDWOHDVW\HDUVROGDQGQRWHWKDWZHDVVXPHWKDWWKH\HDULV
(DUWKVWKRXJK(DUWKVORFDWLRQKDVEHHQIRUJRWWHQ%\WKH*DODFWLF(PSLUH
FDOHQGDU3HEEOHLQWKH6N\ZKLFKKDVUHIHUHQFHVWRKXQGUHGVRIWKRXVDQGVRI
\HDUVRIH[SDQVLRQLQWRVSDFHRFFXUVDERXW*(,Q)RXQGDWLRQDWRPLF
HQHUJ\LV\HDUVROG7KHURERW'DQHHOLV\HDUVROGLQ3UHOXGHWR
)RXQGDWLRQDQGLQ)RUZDUGWKH)RXQGDWLRQ+RZIDUDZD\LQRXUIXWXUHGRWKH
6XQ DQG6SDFHVKLSHPEOHPUXOH"3HUKDSV\HDUV"1RRQHGDWHUHFRQFLOHV
HYHU\GHWDLO

1RWWKDWLWWUXO\PDWWHUV,NQRZWKHGDQJHUVRIZULWLQJDORQJVHULHV
RYHUGHFDGHV,WRRNWZHQW\ILYH\HDUVWRZUHVWOHZLWKWKHVL[YROXPHVRIP\
*DODFWLF&HQWHUVHULHV8QGRXEWHGO\WKHUHDUHFRQWUDGLFWLRQV,PLVVHGLQ
GDWLQJDQGRWKHUGHWDLOVHYHQWKRXJK,ODLGLWDOORXWLQDWLPHOLQH
SXEOLVKHGLQWKHODVWYROXPH7KHDOLHQVRIWKDWVHULHVDUHQRWWKRVH
LPSOLFDWHGLQWKLVQRYHOEXWWKHUHDUHFOHDUO\FRQFHSWXDOOLQNV
6FLHQFHILFWLRQVSHDNVRIWKHIXWXUHEXWWRWKHSUHVHQW7KHJUDQG
LVVXHVRIVRFLDOSRZHUDQGWKHWHFKQRORJ\WKDWGULYHVLWZLOOQHYHUIDGH
2IWHQSUREOHPVDUHEHVWVHHQLQWKHSHUVSHFWLYHVRILPSOLFDWLRQEHIRUHZH
PHHWWKHPRQWKHJULWW\JURXQGRIWKHLUDUULYDO
,VDDF$VLPRYZDVXOWLPDWHO\KRSHIXODERXWKXPDQLW\+HVDZXVDJDLQDQG
DJDLQFRPLQJWRDFURVVURDGVDQGSUHYDLOLQJ7KH)RXQGDWLRQLVDERXWWKDW
:KDWPDWWHUVLQVDJDVLVVZHHS7KLVWKH)RXQGDWLRQVHULHVVXUHO\KDV
,FDQRQO\KRSH,KDYHDGGHGDELWWRWKDW

:RUNVWUDFLQJWKHLQWULFDFLHVRIWKH)RXQGDWLRQLQFOXGHQRWDEO\$OH[HL
DQG&RU\3DQVKLQVKLVWRULFDO7KH:RUOG%H\RQGWKH+LOO-DPHV*XQQV
LQVLJKWIXO,VDDF$VLPRY-RVHSK3DWURXFKVWKRURXJK7KH6FLHQFH)LFWLRQRI
,VDDF$VLPRYDQG$OYD5RJHUV5HTXLHPIRU$VWRXQGLQJZKLFKJLYHVDVHQVHRI
ZKDWLWZDVOLNHWRUHDGWKHFODVVLFZRUNVDVWKH\DSSHDUHG,OHDUQHGIURP
DOOWKHVHVWXGLHV
)RUDGYLFHDQGFRPPHQWVRQWKLVSURMHFW,DPHVSHFLDOO\JUDWHIXOWR
-DQHW$VLPRY0DUN0DUWLQ'DYLG%ULQ-RH0LOOHU-HQQLIHU%UHKODQG
(OLVDEHWK%URZQIRUFORVHUHDGLQJVRIWKHPDQXVFULSW0\JUDWLWXGHJRHVWR'RQ
'L[RQIRUKLVIDQWDVWLFDOIXWXUHEHDVWLDU\$SSUHFLDWLRQIRUJHQHUDOKHOSLV
GXHWRP\ZLIH-RDQ$EEHDQGWR5DOSK9LFLQDQ]D -DQHW$VLPRY-DPHV*XQQ
-RKQ6LOEHUVDFN'RQDOG.LQJVEXU\&KULV6FKHOOLQJ-RKQ'RXJODV*UHJ%HDU
*HRUJH=HEURZVNL3DXO&DUWHU/RX$URQLFD-HQQLIHU+HUVKH\*DU\:HVWIDKO
DQG-RKQ&OXWH7KDQNVWRDOO
6HSWHPEHU
B*UHJRU\%HQIRUGSK\VLFLVWHGXFDWRUDXWKRUZDVERUQLQ0RELOH
$ODEDPD+HLVDSURIHVVRURISK\VLFVDWWKH8QLYHUVLW\RI&DOLIRUQLD
,UYLQHDQGFRQGXFWVUHVHDUFKLQSODVPDWXUEXOHQFHWKHRU\DQGH[SHULPHQWDQG
LQDVWURSK\VLFV+HKDVSXEOLVKHGZHOORYHUDKXQGUHGSDSHUV+HLVD
:RRGURZ:LOVRQ)HOORZDQGDYLVLWLQJSURIHVVRUDW&DPEULGJH8QLYHUVLW\DQGKDV
VHUYHGDVDQDGYLVRUWRWKH'HSDUWPHQWRI(QHUJ\1$6$DQGWKH:KLWH+RXVH
&RXQFLORQ6SDFH3ROLF\
0DQ\RIKLVEHVWNQRZQQRYHOVDUHSDUWRIDVL[QRYHOVHTXHQFHEHJLQQLQJ
LQWKHQHDUIXWXUHZLWK,QWKH2FHDQRI1LJKWDQGFRQWLQXLQJRQZLWK$FURVV
WKH6HDRI6XQV7KHVHULHVWKHQOHDSVWRWKHIDUIXWXUHDWWKHFHQWHURI
RXUJDOD[\ZKHUHDGHVSHUDWHKXPDQGUDPDXQIROGVEHJLQQLQJZLWK*UHDW6N\
5LYHUDQGSURFHHGLQJWKURXJK7LGHVRI/LJKW)XULRXV*XOIDQGFRQFOXGLQJ
ZLWK6DLOLQJ%ULJKW(WHUQLW\$WWKHVHULHVHQGWKHOLQNVWRWKHHDUOLHU
QRYHOVHPHUJHUHYHDOLQJDVLQJOHXQIROGLQJWDSHVWU\DJDLQVWDQLPPHQVH
EDFNJURXQG

You might also like