7KH0RUDYLDQ0LVVLRQ0DFKLQH

%\'HDQ7D\ORU

HYLYDO E\ LWV YHU\

WKDW WKHUH DPRQJVW WKH VWRQHV
GHQLWLRQ LPSOLHV
RI WKH IRXQGLQJ ELVKRS DQG
VRPHWKLQJ LV EURXJKW
RWKHU ZHOONQRZQ PLVVLRQDULHV
WR OLIH WKDW ZDV RQFH VOHHSLQJ
RI WKH WLPH ZHUH GLVSHUVHG WKH
RU GHDG 7KURXJKRXW KLVWRU\
VWRQHV RI QXPHURXV $PHULFDQ ,Q
*RG KDV UHSHDWHGO\ VHQW UHYLYDO
GLDQV2QHWRPEVWRQHUHDOO\FDXJKW
WRDZDNHQ+LVFKXUFKIURPVOHHS\
P\ DWWHQWLRQ ,W UHDG VLPSO\ -R
VHOILQGXOJHQFHWRDQDFWLYHZRUOG
VHSK D 0RKLFDQ 'HSDUWHG -XO\
2XU/DPEKDVFRQTXHUHG
FKDQJLQJIRUFH,WLVLQWHUHVWLQJKRZ
VW,WKRXJKW:RZVRIHZ
OHWXVIROORZ+LP
KLVWRU\UHSHDWVLWVHOIDQGLWEHFRPHV
ZRUGVEXWZKDWDVWRU\
DSSDUHQW WKDW ZH ZLOO QHYHU DUULYH DW DQ\ GHVWLQDWLRQ
$WWKHWLPHHDFKVWRQHVHHPHGWRFRQFHDODWUHDVXUH
RQWKLVHDUWKLQZKLFKZHZLOORXWJURZRXUQHHGIRUWKLV WURYHRIXQWROGPLVVLRQVWRULHVDOOVHHPLQJO\ORFNHGEH
FRQWLQXDOOLIHFKDQJLQJSKHQRPHQRQZHFDOOUHYLYDO7KH WZHHQWKHGXVW\SDJHVRIWLPH(DJHUWRNQRZPRUH,GXJ
FKXUFK OLYHV RU GLHV LQ GLUHFW SURSRUWLRQ WR WKH PHDVXUH GHHSHUDQGZKDW,GLVFRYHUHGZDVMXVWKRZHIIHFWLYHWKLV
LQZKLFKLWRSHUDWHVXQGHUWKLV+RO\6SLULWDQRLQWLQJ,Q RIWHQRYHUORRNHGPLVVLRQRXWSRVWDFWXDOO\ZDV%HWZHHQ
$FWVDQGZKHQUHYLYDOFDPHDW3HQWHFRVWLWGLGQWMXVW WKLVKXPEOHOLWWOHFRPPXQLW\LQ%HWKOHKHP3$DQGWKHLU
XVKHULQJUHDWIHHOLQJVLWZDVWKHELUWKRIWKHFKXUFKD VLVWHU FRPPXQLW\ LQ +HUUQKXW *HUPDQ\ WKHLU PLVVLRQ
JDWKHUHGFDOOHGRXWSHRSOH
DFWLYLW\ VSDQQHG DQ DPD]LQJ GLVWDQFHIRXU FRQWLQHQWV
7KHVHSHRSOHFKDQJHGWKHZRUOGDURXQGWKHP:KHQ LQXQGHU\HDUV:KDWVPRUHWKHLUFRQYHUWVZHUHVXF
\RXUHDGWKHERRNRI$FWV\RXHQFRXQWHUWKHDPD]LQJWHV
FHVVIXOO\GLVFLSOHGDQGWUDLQHGPDQ\RIWKHPJRLQJRQWR
WLPRQ\RIDSHRSOHZKRZHUHREVHVVHGZLWKWKHSURSDJD
EHFRPH SDVWRUV DQG PLVVLRQDULHV WKHPVHOYHV , ZDV LP
WLRQRIWKH.LQJGRPRI*RG7KHVHUDGLFDOEUHWKUHQVROG SUHVVHGZKHQ,UHDGWKLVEXWZKHQ,VWRSSHGWRFRQVLGHU
HYHU\WKLQJWKH\KDGDQGFKDQJHGDOOWKHLUSODQVDQGHDUWK
WKHFRQGLWLRQVRIWKHWLPHLQZKLFKWKH\OLYHG,ZDVVLP
O\DWWDFKPHQWVMXVWWREHIROORZHUVRI-HVXV7KURXJKRXW SO\DVWRXQGHG
WKH FHQWXULHVRQFH LQ D JUHDW ZKLOHLW KDSSHQV DJDLQ
 1RPRGHUQWUDQVSRUWDWLRQ
:KHQLWKDSSHQVWRDQLQGLYLGXDOLWPDNHVDJUHDWWHVWL
 1R PRGHUQ FRPPXQLFDWLRQ VXFK DV ,QWHUQHW
PRQ\EXWZKHQLWKDSSHQVWRDFKXUFKLWPDNHVKLVWRU\
HPDLOFHOOSKRQHVHWF
1RWIDUXSWKHURDGIURPPHLQ%HWKOHKHP3HQQV\O
 1RKRVSLWDOVRUDQWLELRWLFV
YDQLDDUHWKHUHPDLQVRID0RUDYLDQPLVVLRQFRPPXQLW\
IURP WKH V$ IHZ \HDUV DJR LPSUHVVHG ZLWK VRPH
 1RGHYHORSHGSRVWDOV\VWHP
0RUDYLDQOLWHUDWXUH,ZDVUHDGLQJ,GHFLGHGWRGRVRPH ,QGHHG,QRZIRXQGP\VHOIVPDFNGDELQWKHPLGGOHRI
UHVHDUFK RQ WKLV OLWWOH PLVVLRQ RXWSRVW (DUO\ RQ LQ P\ RQH RI WKH ELJJHVW WUHDVXUH WURYHV RI PLVVLRQ KLVWRULHV ,
VWXG\,FRXOGKDUGO\EHOLHYHZKDW,ZDVUHDGLQJ:KLOH, KDG HYHU UHDG , NQHZ WKLV KDG WR EH WKH ZRUN RI *RG
KDGKRSHGWRHQFRXQWHUVRPHJRRGPLVVLRQVWRULHVZKDW DPRQJDQRWKHUUHYLYHGDQGFDOOHGRXWSHRSOHEXW,DOVR
,GLVFRYHUHGZDVVRPXFKPRUHWKDQWKDW
NQHZ,QHHGHGWRNQRZPRUH$QG,NQHZWKDWLI,ZDQWHG
WRIXOO\XQGHUVWDQGWKH0RUDYLDQVRI%HWKOHKHP,ZRXOG
9LVLWWR%HWKOHKHP
UVWQHHGWRNQRZZKHUHWKH\FDPHIURP
$VVRRQDV,VWHSSHGLQWRWKHROGJUDYH\DUGLQ%HWK
OHKHPDSWO\QDPHG*RGV$FUH,LPPHGLDWHO\QRWLFHG

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

+RZGLGWKH\GRLW"
)URP0RUDYLDWR+HUUQKXW

'HVLULQJ WR EH PRUH LQWLPDWHO\ LQYROYHG ZLWK ZKDW

ZDVJRLQJRQDW+HUUQKXW/XGZLJDQGKLVZLIHHYHQWX
DOO\PRYHGLQWRWKHFRPPXQLW\DQGWKUHZLQWKHLUORWZLWK
WKH0RUDYLDQUHIXJHHV4XLFNO\VHQVLQJWKHXQUHVWDPRQJ
WKHUHIXJHHV/XGZLJDQGKLVZLIHLQYLWHGDOOWKHVHWWOHUV
WRMRLQLQWREDQGVIRULQWHUSHUVRQDOUHVSRQVLELOLW\FRQ
IHVVLRQ DQG SUD\HU 6HYHUDO WLPHV D ZHHN PHPEHUV RI
WKH EDQGVXVXDOO\ IURP WKUHH WR KDOI D GR]HQYROXQ
WDULO\PHWWRVKDUHWKHLUWKRXJKWV7KH\VKDUHGWKHLUWHPS
WDWLRQVSRLQWHGRXWIDXOWVDQGRSHQHGWKHPVHOYHVXSWR
RQHDQRWKHULQWKHSUHVHQFHRI*RG0LUDFOHVKDSSHQHG
EXW HYHQ PRUH DPD]LQJ KDSSHQLQJV ZHUH \HW WR FRPH
+RRYHU

)RUJHGLQWKHNLOQVRIFHQWXULHVRIUHYLYDOUHV0RUD
YLD ORFDWHG LQ WKH PRGHUQ GD\ &]HFK 5HSXEOLF ZDV D
PHOWLQJSRWRIUDGLFDO&KULVWLDQLW\IRURYHUDPLOOHQQLXP
)URP WKH &DWKDUL %RJRPLOL $OELJHQVHV DQG :DOGHQVL
DQVWRWKH+XVVLWHV+XWWHULWHVDQG&]HFK%UHWKUHQ8QL
WDV)UDWUXPWKLVDUHDJDYHELUWKWRDKHULWDJHRIUDGLFDO
&KULVWLDQLW\OLNHQRRWKHU
%XWLQWKHVDQHZZDYHRI&DWKROLFSHUVHFXWLRQ
FDPHXSRQWKHQRQ&DWKROLFFKXUFKDOORYHU0RUDYLD$V
DUHVXOWPDQ\UHFDQWHGDQGVRPHJUHZFROG7KRVHZKR
UHIXVHGWRUHFDQWZHUHVHYHUHO\SHUVHFXWHG7KHQLQ
DVPDOOUHPQDQWRIWKH8QLWDV)UDWUXPIHOWWKH/RUGXUJ
%URWKHUO\$JUHHPHQW
LQJ WKHP WR HH WR QHDUE\ *HUPDQ\ 2QFH LQ *HUPDQ\
7KH 0RUDYLDQ UHIXJHHV KDG FRPH IURP D FKXUFK
WKH\ HQGHG XS RQ WKH SURSHUW\ RI D \RXQJ QHZO\ PDU
KHULWDJH
WKDW EHOLHYHG WKDW WKH +RO\ 6SLULW FRXOG OHDG
ULHGFRXQWQDPHG/XGZLJYRQ=LQ]HQGRUI/XGZLJKDGD
WKH FKXUFK LQ ERWK VSLULWXDO
GHHS GHVLUH WR IROORZ &KULVW
DQG SUDFWLFDO PDWWHUV $V
LQDUDGLFDOZD\$V0RUDYL
&KULVWV LQFDUQDWHG ZLWQHVV
DQVPRYHGRQWRKLVSURSHUW\
RQ WKH HDUWK WKH\ EHOLHYHG
KH GHYHORSHG D UHODWLRQVKLS
WKDW ZKHQ WKH\&KULVWV
ZLWK WKHP 8OWLPDWHO\ /XG
FKXUFKPHW WRJHWKHU WR
ZLJ ZDV VR PRYHG E\ WKHLU
SUD\ WKH 6SLULW ZRXOG OHDG
GHYRWLRQ WR &KULVW DQG WKHLU
WKHP WR XQLW\ LQ MXVW DERXW
JRGO\ H[DPSOH WKDW KH VRRQ
HYHU\ PDWWHU ,Q 0D\ RI
MRLQHG WKHP 7RJHWKHU WKH\
 ZLWK WKH KHOS RI WKH
SURSHOOHG RQH DQRWKHU RQ WR
VHWWOHUV IURP 0RUDYLD
JUHDWHUGHYRWLRQ(YHQWXDOO\
/XGZLJ GUHZ XS D SODQ RI
*RG ZRXOG EOHVV WKHP ZLWK
EURWKHUO\DJUHHPHQW7KLV
VRPHWKLQJ WUXO\ H[WUDRUGL
DJUHHPHQWJDYHWKHJURZLQJ
QDU\
FRPPXQLW\ VRPH QHHGHG
1RW ORQJ DIWHU WKH UVW
H[SHFWDWLRQV DQG ERXQGDU
JURXS RI UHIXJHHV VHWWOHG DW
LHV 7KHQ IROORZLQJ WKHLU
$0RUDYLDQSUD\HUPHHWLQJ
+HUUQKXW &KULVWLDQ 'DYLG
DQFLHQW FXVWRP WKH SHRSOH
RQHRIWKHRULJLQDO0RUDYLDQ
DW+HUUQKXWFKRVHIRXUPHQWREHWKHLURYHUVHHUV&KULV
OHDGHUVKDGDORQJLQJWRLQYLWHPRUHRIKLVIHOORZEUHWK
WLDQ'DYLG*HRUJDQG0HOFKLRU1LWVFKPDQQDQG&KULV
UHQEDFNLQ0RUDYLDWRHVFDSHWR+HUQQKXW6XEVHTXHQWO\
WRSK +RIIPDQ 2Q 0D\   WKH\ DOO VLJQHG WKHLU
LQ$XJXVWKHUHWXUQHGWR+HUUQKXWZLWKPDQ\QHZ
QDPHV DQG VKRRN KDQGV SURPLVLQJ WR NHHS WKH UXOHV LQ
EHOLHYHUV+RZHYHUUDSLGJURZWKKDGLWVSUHGLFWDEOHHI
&KULVWV SHDFH7KLV ZDV D WLPH RI UDGLFDO DQG DW WLPHV
IHFW DQG VXEVWDQWLDOO\ VWUHVVHG WKH OLWWOH FRPPXQLW\ ,Q
HYHQSDLQIXOWUDQVSDUHQF\DQGKRQHVW\
VWHDGRIDQLG\OOLFUHWUHDWIRUWKHVSLULWXDOO\LQFOLQHGWKH
=LQ]HQGRUIZURWHLQKLVMRXUQDODERXWRQHRIWKHVHDF
VXUURXQGLQJDUHDO\LQJDVLWGLGQHDUWKHERUGHUVRI6LOHVLD
FRXQWDELOLW\ PHHWLQJV VD\LQJ 'DYLG 1LWVFKPDQQ DQG
DQG%RKHPLDEHFDPHDUDZUHIXJHHFDPS7KHUHZHUHDOO
&KULVWLDQ'DYLGVDWDWP\WDEOHWRGD\:HWRRNVWRFNRI
NLQGV RI &KULVWLDQV VKRZLQJ XS6FKZHQNIHOGHUV$QD
RXUVHOYHVDQGWROGHDFKRWKHUZKDWVWLOOUHPDLQHGWRPDU
EDSWLVWV/XWKHUDQV&DOYLQLVWVDQGPRUH
WKHLPDJHRI&KULVWLQXV)LUVW,OHWWKHPVD\ZKDWZDV
 6RPHWLPHVFDOOHG7KH8QLW\RI%URWKHUVRU7KH8QLWHG
WKHPDWWHUZLWKPHWKHQ,VDLGZKDWZDVVWLOOWKHPDWWHU
%UHWKUHQ7KLVLVQRWWREHFRQIXVHGZLWKWKHODWHUJURXS
ZLWKWKHP+RRYHU:LWKWKLVNLQGRIVLQFHULW\DQG
LQWKH86$RIWKHVDPHQDPH7KH ZDVD
KRQHVW\ D JHQXLQH XQLW\ VWDUWHG WR HPHUJH$QG LW ZDV
VPDOOEUDQFKRIWKH+XVVLWHVZKRSUDFWLFHGWKH6HUPRQRQWKH
ZLWKWKLVKHDUWRIXQLW\WKDWWKH\EHJDQWRFDOOXSRQ*RG
0RXQWPRVW+XVVLWHVGLGQRWEHJLQQLQJLQWKHHDUO\V
LQSUD\HU
 +LVOLIHLVDVWRU\LQLWVHOI
7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

3UD\HU
7KHKLVWRULFDODFFRXQWRIWKHSUD\HUOLIHRIWKHVHSHR
SOHLVWUHPHQGRXVO\FKDOOHQJLQJ2QHVXFKDFFRXQWUHDGV
 2Q -XO\ WK WKH &RXQW SRXUHG RXW KLV VRXO LQ D
SUD\HU DFFRPSDQLHG ZLWK D RRG RI  WHDUV 7KLV
SUD\HUSURGXFHGDQH[WUDRUGLQDU\HIIHFW7KHZKROH
FRPPXQLW\ EHJDQ SUD\LQJ DV QHYHU EHIRUH 2Q 
-XO\ PDQ\ RI  WKH FRPPXQLW\ FRYHQDQWHG WRJHWKHU
RQWKHLURZQDFFRUGWRPHHWRIWHQWRSRXURXWWKHLU
KHDUWVLQSUD\HUDQGK\PQV
2Q  $XJXVW WKH &RXQW VSHQW WKH ZKROH QLJKW LQ
SUD\HUZLWKDERXWWZHOYHRUIRXUWHHQRWKHUVIROORZ
LQJ D ODUJH PHHWLQJ IRU SUD\HU DW PLGQLJKW ZKHUH
JUHDW HPRWLRQ SUHYDLOHG 2Q 6XQGD\

$XJXVW3DVWRU5RWKHZKLOHOHDGLQJ
WKH VHUYLFH DW +HUUQKXW ZDV RYHUZKHOPHG E\ WKH
SRZHURI WKH/RUGDERXWQRRQ+HVDQNGRZQLQWR
WKHGXVWEHIRUH*RG6RGLGWKHZKROHFRQJUHJDWLRQ
7KH\ FRQWLQXHG WLOO PLGQLJKW LQ SUD\HU DQG VLQJLQJ
ZHHSLQJDQGSUD\LQJ*UHHQHOG

5HYLYDO
7KH/RUGKDGEOHVVHGWKHPZLWKXQLW\LQSUDFWLFDOPDW
WHUVDQGLQSUD\HU7KHQRQ$XJXVW=LQ]HQGRUI
FDOOHGIRUDVSHFLDOFRPPXQLRQVHUYLFH'XULQJWKLVVHU
YLFH*RGSRXUHGRXWDVSHFLDOEOHVVLQJRQWKHP2QHSDU
WLFLSDQWUHSRUWHG1RRQHSUHVHQWFRXOGWHOOH[DFWO\ZKDW
KDSSHQHGRQWKDW:HGQHVGD\PRUQLQJ$XJXVW
DWWKHVSHFLDOO\FDOOHG&RPPXQLRQVHUYLFH7KH\KDUGO\
NQHZLIWKH\KDGEHHQRQHDUWKRULQKHDYHQ
$QRWKHUDFFRXQWRIWKDWPRUQLQJUHDGV

/RXGZHHSLQJDQGFULHVWRKHDYHQQHDUO\GURZQHG
RXWWKHVLQJLQJ7KHVHUYLFHGLGQRWHQGXQWLODV/XG
ZLJ>=LQ]LQGRUI@GHVFULEHGLWODWHUWUXH+HU]HQVJHPHLQ
VFKDIWFRPPXQLRQRI WKHKHDUWKDGGHVFHQGHGXSRQ
WKHPDOO:KHUHWKH\KDGEHHQRQHERG\EHIRUHQRZ
WKH\ZHUHRQHLQVSLULWWKH6SLULWRI &KULVW7KRVH
ZKR KDG VHULRXVO\ DQQR\HG HDFK RWKHU QRZ HP
EUDFHGDQGSURPLVHGWRVHUYHRQHDQRWKHULQSHDFH
VRWKHZKROHFRQJUHJDWLRQFDPHEDFNWR+HUUQKXWDV
QHZERUQFKLOGUHQ+RRYHU
)ROORZLQJWKHFRPPXQLRQVHUYLFHWKHLUSUD\HUPHHWLQJV
GLG QRW VWRS EXW LQFUHDVHG LQ ERWK FRPPLWPHQW DQG
IHUYHQF\

:KHUHYHUWKH\PRYHGWKH0RUDYLDQVIRXQ
KHUH/WR5LQ6W&URL[:HVW,QGLHV*Q
WKH1DWLYH$PHULFDQV/DEUD
1RQVWRSSUD\HUEHJLQV
2QHKLVWRULDQUHFRUGVWKHEHJLQQLQJRIWKHIDPHGQRQ
VWRSSUD\HUFKDLQRIWKH0RUDYLDQV:KLOHWKHUHLVQRWK
LQJGUDPDWLFDERXWWKHDFFRXQWLWGRHVJLYHXVDJOLPSVH
RIWKHVLPSOLFLW\RIVSLULWEHKLQGWKHSUD\HUEXUGHQ7KH
WKRXJKWVWUXFNVRPHEUHWKUHQDQGVLVWHUVWKDWLWPLJKWEH
ZHOOWRVHWDSDUWFHUWDLQKRXUVIRUWKHSXUSRVHRISUD\HUDW
ZKLFKVHDVRQVDOOPLJKWEHUHPLQGHGRILWVH[FHOOHQF\DQG
EHLQGXFHGE\WKHSURPLVHVDQQH[HGWRIHUYHQWSHUVHYHU
LQJSUD\HUWRSRXURXWWKHLUKHDUWVEHIRUHWKH/RUG
6RLWZDVWKDWRQWKHWKRI$XJXVWWZHQW\IRXUPHQ
DQGWZHQW\IRXUZRPHQFRYHQDQWHGWRJHWKHUWRFRQWLQXH

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

SUD\LQJLQLQWHUYDOVRIRQHKRXUHDFKGD\DQGQLJKWHDFK
KRXUDOORFDWHGE\ORWVWRGLIIHUHQWSHRSOH2Q$XJXVWWK
WKLVQHZUHJXODWLRQRIFLDOO\EHJDQ2WKHUVMRLQHGWKHLQ
WHUFHVVRUVDQGWKHQXPEHULQYROYHGLQFUHDVHGWRVHYHQW\
VHYHQ 7KH\ DOO FDUHIXOO\ REVHUYHG WKH KRXU ZKLFK KDG
EHHQDSSRLQWHGIRUWKHP7KHLQWHUFHVVRUVKDGDZHHNO\
PHHWLQJZKHUHSUD\HUQHHGVZHUHJLYHQWRWKHP
7KHFKLOGUHQDOVRWRXFKHGSRZHUIXOO\E\*RGEHJDQ
DVLPLODUSODQDPRQJWKHPVHOYHV,WLVUHSRUWHGWKDWWKRVH
ZKRKHDUGWKHLULQIDQWVXSSOLFDWLRQVZHUHGHHSO\PRYHG
7KHFKLOGUHQVSUD\HUVDQGVXSSOLFDWLRQVKDGDSRZHUIXO
HIIHFWRQWKHZKROHFRPPXQLW\*UHHQHOG
7KH0RUDYLDQVIHOWWKDWWKHFDOOWRQRQVWRSSUD\HUZDV
OLNHQHGWRWKH2OG7HVWDPHQWW\SRORJ\RIWKHUHLQWKH
WHPSOH 7KH VDFUHG UH ZDV

QGHGPLVVLRQFRPPXQLWLHVDVVHHQ
QDGGHQKXWWHQ3HQQV\OYDQLDDPRQJ
DGRUDQG*UHHQODQG
QHYHUSHUPLWWHGWRJRRXWRQWKHDOWDU/HYLWLFXV
/LNHZLVHWKH\VDLGWKDWDFRQJUHJDWLRQLVDWHPSOHRIWKH
OLYLQJ*RGZKHUHLQKHKDVKLVDOWDUDQGUHWKHLQWHUFHV
VLRQRIKLVVDLQWVVKRXOGLQFHVVDQWO\ULVHXSWRKLP
,W LV VDLG WKDW WKLV SUD\HU PHHWLQJ FRQWLQXHG XQEUR
NHQ IRU RQH KXQGUHG \HDUV$OVR \RXQJ SHRSOH VKRXOG
QRWHKHUHWKDWWKLVSUD\HUZDWFKZDVVWDUWHGE\DJURXSRI
\RXQJ ]HDORXV EHOLHYHUV 7KH DYHUDJH DJH RI SHRSOH LQ
WKLVFRPPXQLW\ZDVDERXWWKLUW\=LQ]HQGRUIKLPVHOIZDV
RQO\WZHQW\VHYHQ7DUU

%XWWKHUHVPRUH
,IWKHUHYLYDOZRXOGKDYHVWRSSHGWKHUH,ZRXOGKDYH
EHHQLPSUHVVHGHQRXJK%XWDV,NHSWUHDGLQJ,IRXQGWKDW
ZKDWKDSSHQHGQH[WZDVHYHQPRUHH[WUDRUGLQDU\6DGO\
LWVWKLVQH[WSDUWWKDW\RXQHYHUKHDUDERXWLQWKHW\SLFDO
DFFRXQWVRIWKH0RUDYLDQVDQGIRUJRRGUHDVRQ1RWK
LQJDERXWZKDWKDSSHQHGQH[WWVLQWRRXUPRGHUQ$PHUL
FDQLGHDRIZKDWZHFDOOQRUPDOFKXUFKOLIH

'LVFODLPHU
6LQFHPRVWRIWKH0RUDYLDQVZHUHSRRUUHIXJHHVWKH\
KDGDIHZDGYDQWDJHVRYHUXV)LUVWRIDOOWKH\ZHUHDO
UHDG\VWUDQJHUVDQGSLOJULPVLQWKHLUQHZODQG7KHLUDW
WDFKPHQW WR WKHLU VXUURXQGLQJV ZDV PLQLPDO 6HFRQGO\
EHFDXVHRIWKHLUSRYHUW\WKH\ZHUHIRUFHGWRGHSHQGRQ
RQHDQRWKHUIRUHYHQWKHLUPRVWEDVLFQHHGV%HFDXVHRI
WKLVZKHQUHYLYDOKLWWKHVHSLOJULPVZHUH

SRLVHGDQGUHDG\WREHPRYHGDQ\ZKHUHWKH
/DPE ZRXOG OHDG WKHP ,W ZDV LQ WKHVH HDUO\ GD\V WKDW
WKHLUPRWWREHFDPH7KH/DPEKDVFRQTXHUHGOHWXVIRO
ORZ+LPDQGWKH\PHDQWLW

*R\HLQWRDOOWKHZRUOG
$V WKH\ NHSW SUD\LQJ DQG DVNLQJ *RG IRU PRUH LW
ZDVQWORQJEHIRUHWKH+RO\6SLULWSXWWKHPLQWRDFWLRQ
7KH\VRRQIHOWWKHFDOOWRVSUHDGWKH/DPEVNLQJGRPWR
WKHHQGVRIWKHHDUWK)HHOLQJFDOOHGWRPLVVLRQVWKHEUHWK
UHQ VHQW RXW WKHLU UVW WZR PLVVLRQDULHV WR WKH LVODQG RI
6W7KRPDV7KHVHWZR\RXQJ0RUDYLDQPLVVLRQDULHV
ZHUH QDPHG 'DYLG 1LWVFKPDQQ DQG /HRQKDUG 'REHU
 3DULV5HLGKHDGVZHOONQRZQVHUPRQ
WHOOVWKHVWRU\DOWKRXJKVRPHRI5HLGKHDGVGHWDLOVDUH
QRWDOWRJHWKHUKLVWRULFDOO\DFFXUDWH

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

7KHLUGHGLFDWLRQZDVLQFUHGLEOH,QRUGHUWRZLQWKHVRXOV
RIWKHVHVODYHVWKH\ZHUHZLOOLQJWRVHOOWKHPVHOYHVLQWR
VODYHU\ +RZHYHU WKLV ZDV QRW OHJDO EHFDXVH WKH\ ZHUH
ZKLWH EXW WKH\ HYHQWXDOO\ IRXQG D ZD\ WR JHW WR NQRZ
WKHVODYHV7KHVHPLVVLRQDULHVPLQLVWHUHGLQVRPHRIWKH
ZRUVWFRQGLWLRQV\RXFRXOGLPDJLQH
1RW ORQJ LQWR WKH ZRUN 'DYLG 1LWVFKPDQQ UHWXUQHG
WR +HUUQKXW DQG ODWHU ZDV PDGH WKH UVW ELVKRS RI 7KH
5HQHZHG 0RUDYLDQ &KXUFK ,Q D IHZ \HDUV /HRQKDUG
ZRXOG DOVR EH FDOOHG
WR UHWXUQ WR +HUUQKXW
WREHLQYROYHGLQPLQ
LVWU\ LQ (XURSH XQWLO
KLV GHDWK 7KH ZRUN
LQ 6W7KRPDV FRQWLQ
XHGWRJURZUDSLGO\DV
RWKHUVFDPHWROOWKH
QHHG (YHQWXDOO\ 'D
7KHVKLS,UHQHZDV
YLG1LWVFKPDQQZRXOG
RZQHGE\WKHFKXUFKWR OHDGWKHPLVVLRQFRP
WUDQVSRUWPLVVLRQDULHV PXQLW\ WR %HWKOHKHP
DQGFRORQLVWVWRYDULRXV 3HQQV\OYDQLD ZKHUH
KH LV QRZ EXULHG LQ
SDUWVRIWKHZRUOG
*RGV$FUH
7KHUHTXLUHPHQWWREHRQHRIWKHVHPLVVLRQDULHVZDV
QRWKLQJ VKRUW RI WRWDO VXUUHQGHU ,Q RQH LQWHUHVWLQJ DF
FRXQW D \RXQJ FRXSOH ZKR ZDQWHG WR EH PLVVLRQDULHV
WR 6W 7KRPDV ZHUH TXHVWLRQHG DERXW WKHLU GHVLUH WR EH
PLVVLRQDULHV7KHZLIHZDVFDOOHGEHIRUHWKHFRQIHUHQFH
DQGWKHIROORZLQJTXHVWLRQVZHUHDVNHG+DGVKHOLYHG
ORQJHQRXJKIRUKHUVHOI"$QVZHU6KHKDGOLYHGIRUKHU
VHOI ORQJ HQRXJK +DG VKH OLYHG ORQJ HQRXJK IRU WKH
FKXUFK"$QVZHU6KHGLGQRWNQRZ+DGVKHWKHFRXU
DJHWRGLHIRUWKLV"$QVZHU6KHKDGWKHFRXUDJHDQG
MR\ WR GR WKLV +HU KXVEDQG ZDV DVNHG WKH VDPH TXHV
WLRQVDWDODWHUWLPHVHSDUDWHO\:KHQWKH\DVNHGKLPLIKH
KDGOLYHGORQJHQRXJKIRUKLPVHOIKHVDLGWKDWKHKDGQRW
+HDOVRVDLGWKDWKHZDVXQFHUWDLQZKHWKHUKHZDVZLOOLQJ
WRGLHLQWKLVFDXVH'XHWRKLVKHVLWDQF\WKH\ZHUHERWK
GHQLHGWKHZRUN6HVVOHU
$QRWKHUUHTXLUHPHQWIRUWKRVHGHVLULQJWREHPLVVLRQDU
LHVZDVWKDWWKH\EHPDUULHG0DQ\\RXQJPHQWRRNDZLIH
IRUWKLVUHDVRQ%XWWKH\KDGDQDPHIRUWKHVHPDUULDJHV
WKH\FDOOHGWKHP6WUHLWHU(KHRUPLOLWDQWPDUULDJH(Q
JHO2QFHWKH\PHWDOORIWKHUHTXLUHPHQWVWKHLUQDPHV
ZHUHJLYHQWRWKHORWZKHUHWKH\OHWWKH/RUGGHFLGHLIWKH\
ZRXOGEHFKRVHQWRJRWRWKHPLVVLRQHOGRUQRW
2EYLRXVO\ WKHVH PLVVLRQV ZHUH YHU\ FRVWO\ %XW WKH
EUHWKUHQ EDFN KRPH QRW RQO\ IHOW OLNH WKH\ ZHUH ODERU
LQJDORQJZLWKWKHPWKH\DFWXDOO\ZHUH:KLOHWKHPLV

VLRQDULHV ZHUH DZD\ RQ WKH HOG OLYLQJ VDFULFLDOO\ WKH

SHRSOH EDFN KRPH GLGQW WKLQN LW ZDV ULJKW IRU WKHP WR
OLYHIRUWKHPVHOYHV,QDVKRUWDPRXQWRIWLPHHYHU\RQH
LQ +HUUQKXW ZDV ZRUNLQJ DQG OLYLQJ VDFULFLDOO\VR WKDW
WKH\ FRXOG FROOHFWLYHO\ SURSDJDWH WKH *RVSHO 7KHLU DF
FRXQWDELOLW\JURXSVJUHZLQWRVKDUHGOLYLQJTXDUWHUVDQG
ZRUNLQJJURXSV8OWLPDWHO\WKH\VKDUHGWKHLUOLYHVWKHLU
SUD\HUVDQGWKHLUVWXII
7KLVNLQGRIVDFULFHLVKDUGWRLPDJLQHLQRXUGD\DQG
DJH,KDYHEHHQFKDOOHQJHGPDQ\WLPHVLQWKHSDVWIURP
WKHFULHVRIPLVVLRQDULHVLQWKHHOGSUHDFKLQJWKDWLIZH
IRONVEDFNKRPHZRXOGOLYHOLNHZHZHUHRQWKHPLVVLRQ
HOG D ORW PRUH FRXOG EH DFFRPSOLVKHG IRU WKH *RVSHO
2IWHQ,SRQGHUHG:RZLIDQ\RIXVWRGD\UHDOO\KHHG
HG WKHVH FULHV IURP WKH PLVVLRQ HOG LW FRXOG UHDOO\ EH
UDGLFDO$IWHUUHDGLQJDERXWWKHVDFULFLDOKRPHOLIHRI
WKHHDUO\0RUDYLDQV,UHDOL]HGWKDWZKHQDZKROHFKXUFK
GRHVWKLVLWLVQRWKLQJVKRUWRILQYLQFLEOH
7RNHHSLQWRXFKZLWKWKRVHEDFNKRPHWKHPLVVLRQDU
LHV NHSW GHWDLOHG MRXUQDOV RI WKHLU WUDYHOV DQG SURJUHVV ,
VDZKXQGUHGVRIWKHVHMRXUQDOVZKHQ,YLVLWHGWKHYDXOWRI
WKH%HWKOHKHPDUFKLYHV,QWKHHYHQLQJVDWWKHFRPSOH
WLRQRIWKHLUW\SLFDOKRXUZRUNGD\WKHKRPHFRPPX
QLW\ZRXOGDOOJRWRWKHLUQLJKWO\SUD\HUPHHWLQJDQGWKHUH
WKH\ ZRXOG UHDG D FRS\ RI WKH MRXUQDOV 7KLV NHSW WKHP
FRQQHFWHG WR WKH ZRUN ,W PXVW KDYH PDGH  KRXUV RI
VORSSLQJWKHKRJVIHHODORWEHWWHUNQRZLQJWKDWZKDW\RX
ZHUHGRLQJZDVIRUWKHSURSDJDWLRQRIWKH*RVSHODQGWKH
.LQJGRPRI*RG$QGLWZRUNHG$VWKHUHSRUWVIURPWKH
PLVVLRQHOGODERUVVWDUWHGFRPLQJLQWKH\ERXJKWDIHZ
VKLSVDQGVWDUWHGH[SDQGLQJWKHLUPLVVLRQVWRRWKHUSODFHV

$PHULFD
%\  WKH\ IHOW WKH FDOO WR$PHULFD *HRUJLD ZDV
WKHLUUVWFKRLFH,QWHUHVWLQJO\RQWKHLUWULSRYHUWKH\PHW
D FRXSOH RI \RXQJ $QJOLFDQ SULHVWV-RKQ DQG &KDUOHV
:HVOH\,WZDVRQWKLVYR\DJHWKDW-RKQ:HVOH\UHFRUGVLQ
KLVMRXUQDOWKDWWKHVKLSUDQLQWRDKXUULFDQH$SSDUHQWO\
HYHU\RQH ZDV LQ D SDQLF LQFOXGLQJ :HVOH\HYHU\RQH
WKDWLVH[FHSWWKH0RUDYLDQV:HVOH\UHFRUGVLQKLVMRXU
QDORQWKDW6XQGD\2FW
,QWKHPLGVWRI WKH3VDOPZKHUHZLWKWKHLU>0RUDYLDQ@
VHUYLFHEHJDQWKHVHDEURNHRYHUVSOLWWKHPDLQVDLOLQ
SLHFHVFRYHUHGWKHVKLSDQGSRXUHGLQEHWZHHQWKH
GHFNVDVLI WKHJUHDWGHHSKDGDOUHDG\VZDOORZHGXV
XS$WHUULEOHVFUHDPLQJEHJDQDPRQJWKH(QJOLVK
7KH *HUPDQV >0RUDYLDQV@ FDOPO\ VDQJ RQ , DVNHG
RQH RI  WKHP DIWHUZDUG :HUH \RX QRW DIUDLG" +H
DQVZHUHG,WKDQN*RGQR,DVNHG%XWZHUHQRW
 6DGO\PRVWRIWKHPDUHQRWHYHQWUDQVODWHGLQWR(QJOLVK\HW

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

\RXUZRPHQDQGFKLOGUHQDIUDLG"+HUHSOLHGPLOGO\
GRUIDFWXDOO\VWDUWHGDWUDYHOLQJPLVVLRQFRPPXQLW\WKDW
1RRXUZRPHQDQGFKLOGUHQDUHQRWDIUDLGWRGLH
KH FDOOHG WKH 3LOJHUJHPHLQH SLOJULP FRPPXQLW\ +H
:HVOH\:RUNV
VDLG WKDW LW VKRXOG EH D VFKRRO RI SURSKHWV WKDW PRYHV
$IWHUWKH\KDGODQGHGVDIHO\LQ$PHULFDWKH0RUDYLDQV OLNHDEOHVVHGFORXGDVWKHZLQGRIWKH/RUGSXVKHVLWDQG
UHEXNHGWKH\RXQJ-RKQ:HVOH\IRUKLVODFNRIIDLWKDQG PDNHV HYHU\WKLQJ IUXLWIXO $ \HDU ODWHU DW %HWKOHKHP
WKHUHIRUHTXHVWLRQHGKLVVDOYDWLRQ:HVOH\DVNHG%LVKRS WKLV YLVLRQ FDPH WR IUXLWLRQ 7KLV SLOJULP VSLULW LV ZKDW
6SDQJHQEHUJ DERXW WKH 0RUDYLDQV IDLWK 7KH ELVKRS VKDSHG%HWKOHKHP
:KHQ,VWRSSHGWRFRQVLGHUP\RZQOLIHWKH6WDU
WRRNLWDVDQRSSRUWXQLW\WRDVN-RKQ:HVOH\VRPHKDUG
EXFNV FRIIHH KRXVHV DQG YDULRXV UHVWDXUDQWV WKDW , KDYH
TXHVWLRQVDERXWKLVIDLWK:HVOH\UHFRUGVWKHDFFRXQW
IUHTXHQWHGDORQJP\PLVVLRQWULSVDQGSUHDFKLQJHQJDJH
+H VDLG 0\ EURWKHU , PXVW UVW DVN \RX RQH RU
PHQWVZHOO,PXVWFRQIHVV,IHOWSUHWW\VKHHSLVKUHDG
WZR TXHVWLRQV +DYH \RX WKH ZLWQHVV ZLWKLQ \RXU
LQJDERXWWKHLUMRXUQH\V(YHQZKHQWKHSLOJULPFRPPX
VHOI "'RHVWKH6SLULWRI *RGEHDUZLWQHVVZLWK\RXU
QLW\ZDVVDLOLQJRQWKHZD\WR$PHULFDWKH\FRQGXFWHG
VSLULWWKDW\RXDUHDFKLOGRI *RG",ZDVVXUSULVHG
WKHPVHOYHVOLNHDPLOLWDU\HHWSUHSDUHGIRUZDU,IRXQG
DQG NQHZ QRW ZKDW WR DQVZHU +H REVHUYHG LW DQG
DJOLPSVHLQWRWKHGHGLFDWHGOLIHVW\OHRIWKHVHPLV
DVNHG'R\RXNQRZ-HVXV&KULVW",SDXVHG
VLRQDULHVIURPDOHWWHUQRZLQWKH%HWKOHKHP
DQGVDLG,NQRZ+HLVWKH6DYLRXURI WKH
DUFKLYHVWKDWJLYHVGHWDLOVRIVKLSOLIH
ZRUOG7UXHUHSOLHGKHEXWGR\RX
2QERDUGVKLSGDLO\WH[WVZHUHUHDG
NQRZ+HKDVVDYHG\RX",DQVZHUHG
(YHQZKHQWKH
DQGPHGLWDWHGXSRQDWWKHLUPRUQ
,KRSH+HKDVGLHGWRVDYHPH+H
SLOJULPFRPPXQLW\ZDV
LQJ DQG HYHQLQJ GHYRWLRQV WKH
RQO\ DGGHG 'R \RX NQRZ \RXU
VDLOLQJRQWKHZD\WR
1LJKW :DWFK RU +RXUO\ ,QWHUFHV
VHOI ",VDLG,GR%XW,IHDUWKH\
$PHULFDWKH\FRQGXFWHG
VLRQZDVREVHUYHGRQHZKROHGD\
ZHUH YDLQ ZRUGV :HVOH\ :RUNV
WKHPVHOYHVOLNHDPLOLWDU\ ZDVVHWDVLGHDVDGD\RI SUD\HUDQG

WKDQNVJLYLQJ /RYH )HDVWV ZHUH
HHWSUHSDUHGIRUZDU
1RW ORQJ LQ *HRUJLD WKH 6SDQLVK
IUHTXHQWO\ REVHUYHG 5HJXODU
VWDUWHGWRPDNHZDUDJDLQVWWKH%ULWLVK
WLPHVZHUHVHWDSDUWLQWKHVHRDWLQJ
%HFDXVH RI WKH 0RUDYLDQ QRQUHVLVWDQW
FRQJUHJDWLRQV
IRU ZRUVKLS DQG UHJXODU
VWDQG RI ORYLQJ WKHLU HQHPLHV WKH\ IHOW
LW\
DQG
SURPSWQHVV
ZHUH PHWLFXORXVO\ RE
LW EHVW WR FXW WKHLU ORVVHV DQG KHDGHG QRUWK WR
VHUYHG$WVL[RFORFNLQWKHPRUQLQJFDPHWKHFDOO
3HQQV\OYDQLD 6RPH RI WKH EUHWKUHQ KDG DOUHDG\ EHHQ
WRDULVHZDVKDQGGUHVVDWVHYHQZDVWKHPRUQLQJ
ZRUNLQJ LQ 1D]DUHWK 3HQQV\OYDQLD KHOSLQJ *HRUJH
EOHVVLQJDWHLJKWEUHDNIDVWIURPQLQHWRWZHOYHWKH
:KLWHHOGEXLOGDVFKRROIRU$IULFDQ$PHULFDQFKLOGUHQ
(QJOLVK%UHWKUHQVWXGLHGWKH*HUPDQODQJXDJHDQG
+RZHYHU QRW ORQJ DIWHU WKH\ ZHUH WKHUH WKH\ JRW LQWR
WKH*HUPDQVWKH(QJOLVKDWWZHOYHWKHQRRQPHDO
D GLVDJUHHPHQW ZLWK :KLWHHOG RYHU SUHGHVWLQDWLRQ
WKHDIWHUQRRQZDVVSHQWLQVRPHXVHIXORFFXSDWLRQ
:KLWHHOGHQGHGXSULQJWKH0RUDYLDQEURWKHUVEHFDXVH
DV VSLQQLQJ VHZLQJ PHVV GXWLHV DQG PDNLQJ KDP
RI WKHLU EHOLHI LQ IUHH ZLOO 2QFH UHOHDVHG WKH EURWKHUV
PRFNVDWVL[WKHHYHQLQJPHDODWVHYHQVRQJVHU
IRXQGWKHSORWRIODQGWKDWWKH\IHOWZRXOGEHSHUIHFWIRU
YLFHVRQHLQ*HUPDQDQGDQRWKHULQ(QJOLVKDWQLQH
WKHLUPLVVLRQRXWSRVW
DFRQIHUHQFHRI WKHRIFHUVFODVVOHDGHUVDQGVXSHU
2Q&KULVWPDV(YH&RXQW1LFRODXVYRQ=LQ]HQ
YLVRUVDQGDWWHQWKHQLJKWSUD\HUZDWFKEHJDQFRQ
GRUIDORQJZLWKDVPDOOEDQGRISLOJULPVQDPHGWKHQHZ
WLQXLQJXQWLO$07KHVHQLJKWZDWFKPHQZRUNLQJ
FRPPXQLW\%HWKOHKHP5LJKWIURPWKHVWDUWWKLVFRP
LQSDLUVDQGKRXUO\VKLIWVVSHQWWKHLUWLPHLQSUD\HU
PXQLW\ZDVEDSWL]HGZLWKODVHUVKDUSYLVLRQSXUSRVHDQG
DQGYLJLO
GHGLFDWLRQ
7KHOHWWHUFRQWLQXHV
7KHVWDUWRIWKH3LOJULP&RPPXQLW\
$V\VWHPFRYHULQJPLQXWHVWGHWDLOVZDVFDUULHGRXWWR
2QHRIWKHVHFUHWVIRUWKHLUXQSUHFHGHQWHGVXFFHVVDW
SURYLGHFOHDQOLQHVVSURSHUGHFRUXPDQGGLVFLSOLQH
%HWKOHKHPZDVGXHWRWKHLULGHDRIDSLOJULPFRPPXQLW\
%HIRUHWKHVDLOLQJRI WKHVHFRQG6HD&RQJUHJDWLRQ
$\HDUEHIRUHWKHIRXQGLQJRI%HWKOHKHP=LQ]HQGRUIZDV
 0RUDYLDQORYHIHDVWVFRQVLVWHGRIDEXQDQGDFXSRIWHD
IRUFHGRIIKLVRZQSURSHUW\LQ6D[RQ\E\WKHORFDOJRY
RUFRIIHH7KH\IHDVWHGRQWKHORYHWR*RGDQGPDQDQGQRW
HUQPHQW1HYHUORVLQJDQRSSRUWXQLW\=LQ]HQGRUIOHYHU
WKHQDWXUDOIRRG/RYHIHDVWVZHUHJHQHUDOO\DWLPHRIVLQJLQJ
DJHGWKLVVHWEDFNWRGHVLJQVRPHWKLQJSRZHUIXO=LQ]HQ
WHVWLPRQ\DQGH[KRUWDWLRQ

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

6SDQJHQEHUJZKRZDVLQ(XURSHDWWKHWLPHGLYLGHG
LWLQWRVL[JURXSVWKUHHRI PHQDQGWKUHHRI ZRPHQ
7KHZRPHQERWKPDUULHGDQGXQPDUULHGOLYHGRQ
RQHVLGHRI WKHVKLSDQGDOOWKHPHQRQWKHRWKHU
(DFKSHUVRQZDVDVVLJQHGGHQLWHGXWLHVRQHVWUXFN
WKHKRXURQDEHOOVRPHZHUHWHDFKHUVRWKHUVH[KRUW
HUVDKHDOWKFRPPLWWHHZDVDSSRLQWHGFRQVLVWLQJRI 
DGRFWRUDQGDVVLVWDQWVVRPHZHUHFKRVHQDVQXUVHV
RWKHU FRPPLWWHHV ZHUH WKH FRRN DQG KLV DVVLVWDQWV
WKHVWHZDUGDQGKLVDVVLVWDQWVWKRVHZKRKDGWRZDLW
RQWKHWDEOHVDQGQDOO\WKHVKLSFUHZDOO0RUDYLDQV
ZRUNLQJXQGHU&DSWDLQ*DUULVRQ6HVVOHU

3RVVHVVLRQV

2XW RI D EXUGHQ IRU WKH ORVW DQG D GHVLUH WR EH XVHG
RI*RGDVSLOJULPVDQGVWUDQJHUVWKHEURWKHUVDW%HWKOH
KHPGLGQRWIHHOWKH\KDGWKHWLPHWRHVWDEOLVKWKHLURZQ
HVWDWHV DQG EXVLQHVVHV 7KHUHIRUH OLNH WKH HDUO\ FKXUFK
DW3HQWHFRVWWKH\SRROHGWKHLUUHVRXUFHVDQGZRUNHGWR
JHWKHULQFRPPXQLW\7RWKHPZRUNLQJDVVRXOZLQQHUV
DQGPLVVLRQDULHVZDVWKHLUHQWLUHOLIHDQGEXVLQHVV
3HRSOH GHVLULQJ WR PRYH LQWR WKH FRPPXQLW\ KDG WR
XQGHUVWDQGWKLVW\SHRIGHGLFDWLRQ7KHIROORZLQJFRQWUDFW
IURPWKH%HWKOHKHPDUFKLYHVVKRZVZKDW0RUDYLDQQHZ
FRPHUVFKRVHWRVLJQDQGEHOLHYH
:H DOO EHORQJ WR WKH 6DYLRU DV +H LV /RUG
/LIHLQ%HWKOHKHP
DQGZKDWZHKDYHWKDWDOOEHORQJVWR+LP
1HHGOHVV WR VD\ ZKHQ WKLV FRPPLWWHG
DQG+HVKDOOGLVSRVHRI LWDVSOHDVHV+LP
:HDOOEHORQJ
JURXSRIEHOLHYHUVODQGHGLQ$PHULFDWKH\
:HGRQRWDFFRUGLQJO\UHJDUGRXUVHOYHV
WRWKH6DYLRU
KLWWKHJURXQGUXQQLQJ$V\RXFDQLPDJ
DV PHQVHUYDQWV RU PDLGVHUYDQWV
DV+HLV/RUGDQG
LQHDJURXSWKLVGHGLFDWHGKDGQRGHVLUH
ZKR VHUYH VRPH PDQ IRU WKH VDNH
ZKDWZHKDYHWKDWDOO
WRVHWWOHGRZQLQWRQRPLQDOFKXUFKOLIH
RI  ZDJH DQG ZKR PLJKW GHPDQG
RQFHWKH\DUULYHGLQ$PHULFDLQIDFW
EHORQJVWR+LPDQG+H KLUH RU SD\ IRU WKHLU ODERU EXW ZH
LW ZDV MXVW WKH RSSRVLWH )URP UHDGLQJ
VKDOOGLVSRVHRILWDV DUH KHUH DV EUHWKUHQ DQG VLVWHUV ZKR
WKHLUKLVWRU\LWDOPRVWDSSHDUVDVWKRXJK
RZHWKHPVHOYHVWRWKH6DYLRXUDQGIRU
SOHDVHV+LP
WKH\ZHUHUDFLQJHDFKRWKHUWRVHHMXVWKRZ
+LVVDNH:HGHFODUHWKHUHIRUHQRWRQO\
IDUWKH\FRXOGJR
LQ JHQHUDO EXW DOVR LQ SDUWLFXODU HDFK RQH
:KDW\RXDUHDERXWWRUHDGQH[WPD\VKRFN
IRUKLPVHOIWKDWZHGRQRWIRUWKLVWLPHQRU
\RX%HIRUH,JRRQWRWHOO\RXVRPHRIWKHZD\V
IRUWKHIXWXUHSUHWHQGWRDQ\ZDJHRUKDYHUHDVRQWR
WKH %HWKOHKHP PLVVLRQ FRPPXQLW\ FRQGXFWHG WKHP
SUHWHQGWRDQ\:HZHUHUHFHLYHGLQWRWKHVDLG(FRQ
VHOYHV,VKRXOGSUHIDFHLWZLWKDIHZLPSRUWDQWIDFWV)LUVW
RP\ZLWKQRLGHDRI KDYLQJWDNLQJRUVHHNLQJZDJH
RIDOOOLIHDW%HWKOHKHPZDVYHU\GLIIHUHQWWKDQ\RXUW\SL
WKH(FRQRP\KDYLQJGHGLFDWHGLWVHOI WRWKHVHUYLFH
FDO$PHULFDQFKXUFK1HYHUWKHOHVVWKHDPD]LQJWKLQJLV
RI WKH6DYLRXUDQGZLWKQRSURPLVHWKDWZDJHRUSD\
WKDWWKH0RUDYLDQVGLGQRWEHOLHYHWKHLUZD\RIOLIHZDV
VKRXOGEHJLYHQZHRQWKHFRQWUDU\UHJDUGLWDPDUN
WKHRQO\ZD\7KDWNLQGRIVHFWDULDQLVPZDVQRWWKHLU
RI JUDFHWKDWZHDUHKHUHDQGPD\ODERUDFFRUGLQJWR
ZD\RIWKLQNLQJDWDOO7REHKRQHVW,ZRXOGHYHQVD\WKDW
WKHDERYHVWDWHGLQWHQWLRQ6HVVOHU
E\P\WDVWHWKH\ZHUHDWWLPHVDELWWRRHFXPHQLFDO6R
:RZ QRZ WKDWV FRPPLWPHQW .HHS LQ PLQG DV , VDLG
SOHDVHNHHSWKLVVSLULWLQPLQGDV\RXUHDGWKHLUUDGLFDO
HDUOLHUWKH0RUDYLDQVGLGQRWIHHOWKDWWKHLUZD\ZDVWKH
WHVWLPRQ\
RQO\ZD\(YHQ%LVKRS6SDQJHQEHUJVSHDNLQJDERXWWKLV
)XUWKHUPRUH DV , UHDG DERXW FKXUFK OLIH DW %HWK
ZD\RIOLIHVDLG,WLVDSDUWLFXODUWKLQJDQGQRWDGYLVDEOH
OHKHP , UVW IHOW KXPEOHG DQG HYHQ D ELW DVKDPHG EXW
IRU DOO VRXOV (QJHO  1HYHUWKHOHVV DIWHU UHDGLQJ
, WKHQ IHOW LQVSLUHGLQVSLUHG DERXW ZKDW *RG FRXOG GR
WKLV \RX NLQG RI KDYH WR VD\:RZ )XUWKHUPRUH
ZLWKDFRQJUHJDWLRQWRGD\WKDWZRXOGEHWRWDOO\VROGRXWWR
OLNHWKHGLVFLSOLQHGOLIHWKH\PDLQWDLQHGRQWKHVKLSWKH
+LPLQWKHVDPHZD\WKH\ZHUH7KH0RUDYLDQVDW%HWK
EUHWKUHQNHSWORRNLQJIRUPRUHHIIHFWLYHZD\VWRDUUDQJH
OHKHP NQHZ ZKDW WKH\ ZDQWHG 7KH\ ZDQWHG WR IROORZ
WKHLUFRPPXQLW\7KH\VRRQFRPELQHGWKHLUKRXVLQJDQG
WKH /DPE DQG WKH\ ZHUHQW JRLQJ WR OHW DQ\WKLQJ JHW LQ
ZRUNLQJFRQGLWLRQVIRUXOWLPDWHSURGXFWLYLW\ZLWKWKHVROH
WKHLUZD\,WKLQNLWZDV/HRQDUG5DYHQKLOOZKRRQFHVDLG
LQWHQWZLQ PRUH VRXOV +LVWRULDQ (QJOH ZULWLQJ DERXW
WKDWLQHYHU\DJH*RGKDVJLYHQWKHFKXUFKWKHUHVRXUFHV
WKLVDUUDQJHPHQWVDLG
DQGDELOLW\WRHYDQJHOL]HWKHZKROHZRUOGLIZHZRXOG
%HFDXVH WKH\ EHOLHYHG LW WR EH PRUH FRVW HIIHFWLYH
MXVWGRLW,XVHGWRWKLQNWKDWKHZDVH[DJJHUDWLQJ%XW
WKDQIRUPLQJPDQ\VLQJOHIDPLO\KRPHVWKHSHRSOH
DIWHUUHDGLQJZKDWWKHVH0RUDYLDQEUHWKUHQZHUHZLOOLQJ
ZKREXLOW%HWKOHKHPOLYHGLQDODUJHFRPPXQLWDULDQ
WR VDFULFH IRU WKH *RVSHO , EHJDQ WR XQGHUVWDQG ZKDW
5DYHQKLOOZDVWDONLQJDERXW

 7KH(FRQRP\ZDVWKHQDPHJLYHQWRWKHZKROHV\VWHP
RIPDQDJHPHQWXQGHUZKLFK%HWKOHKHPRSHUDWHG
7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

VXVZRXQGVDQGKLVORYHWRWKH/DPELVWHQGHUWKHQ
KRXVHKROG7KRVHZKRVWD\HGLQWRZQSRROHGWKHLUOD
RQHQRWLFHVWKDWLPPHGLDWHO\LQKLVRXWZDUGFRQGXFW
ERUIRUHIFLHQF\VVDNHVRWKDWWKH\FRXOGPD[LPL]H
WKHQXPEHURI SLOJULPVLQWKHHOGDWDQ\RQHWLPH
,Q DQRWKHU SODFH %LVKRS 6SDQJHQEHUJ ZURWH HDFK
7KH\ VKDUHG GLQLQJ URRPV GRUPLWRU\VW\OH KRXV
FKLOGDPRQJXVZKHQLWLVKDUGO\IRXU\HDUVROGVSLQVRU
LQJ ZRUNVKRSV DQG RZQHUVKLS RI  EXLOGLQJV WRROV
SLFNVFRWWRQIRUWKHSLOJULPVVHUYHVWKH*RVSHO(QJHO
HOGVDQGSDVWXUHVDQGWKH\UHOLHGRQWKHLUSLHW\WR
 &RXQW =LQ]HQGRUI H[SUHVVHG LW WKLV ZD\ 2QH GRHV
UHQGHUFRPSUHKHQVLEOHDOOWKHVDFULFHVQHFHVVDU\WR
QRWZRUNRQO\VRWKDWRQHFDQOLYHEXWUDWKHURQHOLYHVVR
EXLOG D KRPH LQ WKH UXJJHG FRXQWU\ RI  QRUWKHDVW
WKDWRQHFDQZRUNDQGZKHQRQHKDVQRPRUHZRUNWRGR
HUQ 3HQQV\OYDQLD 7KH PLVVLRQDU\ SURMHFW WKXV OHG
WKHQRQHVXIIHUVRUSDVVHVDZD\(QJHO
WR0RUDYLDQFRPPXQDOLVPWKHWRZQVPRVWGLVWLQF
2QHRIP\IDYRULWHTXRWHVDERXWWKH%HWKOHKHPFRP
WLYH HFRQRPLF VWUXFWXUH DQG D GHOLEHUDWH HQGHDYRU
PXQLW\FDPHIURPP\JRRGIULHQG0LNH$WQLS+HDQG
WKDWPD[LPL]HGSURWIRUWKHVDNHRI VSUHDGLQJWKH
,ZHUHYLVLWLQJ%HWKOHKHPDQGDVZHPDUYHOHGDWDOOWKH
*RVSHO %HWKOHKHPV 2HFRQRP\ LWV FRPPXQDO
IDFWRULHVDQGYDULRXVPLOOVDQGZRUNVKRSVWKH\
KRXVHKROGHPERGLHGWKH0RUDYLDQVGHYR
XVHG VROHO\ IRU WKH SURSDJDWLRQ RI PLVVLRQV
WLRQWRWKHLUWDVNDQGZLWKLQLWPLVVLRQDU\
0LNHORRNHGDWPHDQGH[FODLPHG%HWKOH
$W%HWKOHKHP
ZRUN SURYLGHG D UHOLJLRXV FRQWH[W IRU
KHP ZDV D PLVVLRQ PDFKLQH +LV TXRWH
HYHQ WKH VPDOOHVW HFRQRPLF FKRLFHV
ZDV P\ LQVSLUDWLRQ IRU WKH WLWOH RI WKLV
WKH%UHWKUHQ
'XULQJLWVWZHQW\\HDUKLVWRU\LWZDV
DUWLFOH
DFFRXQWHGLWDQ
WKHEDVHIURPZKLFKJUHZDOORWKHU
7KLV PLVVLRQ PDFKLQH PLQGVHW
KRQRUWRFKRSZRRG
QHJRWLDWLRQV EHWZHHQ WKH VSLULWXDO
UHDOO\PDGHPHWKLQNDERXWWKHZD\,
DQG WKH PDWHULDO DPRQJ 3HQQV\OYD
IRUWKH0DVWHUV
WKLQNDERXWP\SHUVRQDOFDUHHUDQGOLIH
QLDV0RUDYLDQV(QJHO
FKRLFHV , NQRZ WKDW , ZRXOG OLNH WR VD\
VDNH
WKDW , FRQVLGHU P\ MRE DQG EDQN DFFRXQW
:RUN
FRPSOHWHO\GHGLFDWHGWRWKH/DPEEXWDIWHU
:KHQHYHUQHZPLVVLRQSURVSHFWVFDPHXS
UHDGLQJWKHZD\WKH0RUDYLDQVGLGLWZHOO,
WKH\RIWHQMXPSHGDWWKHRSSRUWXQLW\%XWWKHVH
KDGWRZRQGHU
PLVVLRQV ZHUH FRVWO\YHU\ FRVWO\$FFHSWLQJ QHZ PLV
VLRQ HOGV PHDQW PRUH ZRUN IRU HYHU\RQH EDFN KRPH 6WURQJVHQVHRIPHPEHUVKLSDQGXQLW\
%XWDJDLQWKHKRPHFRQJUHJDWLRQIHOWRQHZLWKWKHZRUN
8QOLNH \RXU W\SLFDO $PHULFDQ FKXUFK SODQW %HWKOH
$W%HWKOHKHPOLWHUDOO\HYHU\RQHZDVDPLVVLRQDU\7KH KHPZDVWREHDSODFHZKHUHWRWDOVXUUHQGHUWRWKHFDXVH
EUHWKUHQNQHZWKDWWKHPLVVLRQDULHVRYHUVHDVZHUHHQGXU
RI&KULVWZDVDSUHUHTXLVLWHWRJHWLQWKHGRRU7KHEUHWK
LQJGHSORUDEOHOLYLQJFRQGLWLRQVWKHUHIRUHWKH\ZHUHZLOO
UHQIHOWWKLVSUHUHTXLVLWHZDVFUXFLDOWRZLQQLQJWKHVRXOV
LQJWRVDFULFHEDFNKRPHDVZHOO7RWKHPZKHWKHU\RX RIWKH$PHULFDQVRIWKLVRXWSRVWERWK,QGLDQVDQG(XUR
ZHUHVORSSLQJWKHKRJVLQ%HWKOHKHPRUEXLOGLQJLJORRV SHDQVDOLNH7KH\DOVRNQHZWKDWLIWKH\ZHUHQRWVLQJOH
LQ/DEUDGRUERWKZHUHVHUYLQJWKH/DPE6SHDNLQJDERXW PLQGHGWKHZRUNZRXOGEHKXUW=LQ]HQGRUIZDVMHDORXV
WKLV XQLW\ EHWZHHQ WKH IRUHLJQ ZRUNHUV DQG WKH KRPH WR NHHS WKLV XQLW\ DQG SXULW\ (DFK SHUVRQ ZDQWLQJ WR
ZRUNHUV%LVKRS6SDQJHQEHUJZURWH
FRPHWR%HWKOHKHPKDGWREHVXUHWKDWWKH\PHDQWEXVL
QHVV DQG WKDW WKH\ FRXOG VXSSRUW WKH YLVLRQ RI WKH FRP
$W%HWKOHKHPWKH%UHWKUHQDFFRXQWHGLWDQKRQRUWR
PXQLW\FRPSOHWHO\
FKRSZRRGIRUWKH0DVWHUVVDNHDQGWKHUHPDQIHOW
6SHDNLQJDWDEURWKHUVPHHWLQJRQO\D\HDUDIWHUWKH
KLVSRVWDVLPSRUWDQWDVLI KHZHUHJXDUGLQJWKH$UN
VWDUWRIWKHFRPPXQLW\=LQ]HQGRUILVDOUHDG\UDLVLQJWKH
RI WKH&RYHQDQW7KH\PL[WKH6DYLRUDQG+LVEORRG
UHGDJWKDWWKH\ZHUHOHWWLQJSHRSOHMRLQWRRHDVLO\7KH
LQWR WKHLU KDUURZLQJ PRZLQJ ZDVKLQJ VSLQQLQJ
%HWKOHKHP'LDU\UHFRUGV
LQVKRUWLQWRHYHU\WKLQJ7KHFDWWOH\DUGEHFRPHVD
WHPSOHRI JUDFHZKLFKLVFRQGXFWHGLQDSULHVWO\PDQ
,QGHHG %UR /XGZLJ JDYH WKH ZDUQLQJ WKDW %HWKOH
QHU7KHUHIRUHLQRXU(FRQRP\WKHVSLULWXDODQG
KHPPXVWQRWEHWKZDUWHGLQLWVVWULYLQJIRUSXULW\
WKHSK\VLFDODUHDVFORVHO\XQLWHGDVDPDQVERG\DQG
+HVWDWHGWKDWKHZDVQRWVDWLVHGZLWKWKHFRQJUH
VRXODQGHDFKKDVDVWURQJLQXHQFHXSRQWKHRWKHU
JDWLRQLQWKDWWKHLQGLYLGXDOEUHWKUHQUHFHQWO\DUULYHG
$VVRRQDVDOOLVQRWZHOOLQDEURWKHUVKHDUWVRVRRQ
IURP(XURSHKDGQRWEHHQH[DPLQHGPRUHFDUHIXOO\
ZHQRWLFHLWLQKLVZRUN%XWZKHQKHLVKDSS\LQ-H
SULRUWRWKHLUKDYLQJEHHQDGPLWWHGWRWKHFRQJUHJD
WLRQ%UHWKUHQZKRDUULYHIURPDGLVWDQFHHYHQWKRVH

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

$VVRRQDVQHJOLJHQFHGHYHORSVWKHSURSHUHDUQHVW
ZKRKDYHEHHQFRQVLGHUHGRXWVWDQGLQJEUHWKUHQDQG
QHVVZLWKZKLFKFRQJUHJDWLRQDIIDLUVVKRXOGEHWUHDW
FRQIHVVRUV LQ WKH FRQJUHJDWLRQV IURP ZKLFK WKH\
HGDQGWKHDSSURSULDWHVSLULWDUHORVWDQGWKXVWKHLU
UHVSHFWLYHO\FRPHPXVWEHWHVWHGJULOOHGDQGGHDOW
GHVLJQHGSXUSRVHLVQRWPDLQWDLQHGWKH\KDGEHWWHU
ZLWKLQDQLPSDUWLDOPDQQHUDOOPXVWGHSHQGXSRQ
EHGURSSHGDQGDOORZHGWRGLVDSSHDURUWKH\VKRXOG
KXPLOLW\ DQG GLVFHUQPHQW ,Q WKLV ZD\ D FRQJUHJD
EHWHUPLQDWHGUDWKHUWKDQEHDOORZHGWRFRQWLQXHLP
WLRQ FRXOG PDLQWDLQ LWV SXULW\ $OO GHQRPLQDWLRQV
SDLUHGLQWKLVPDQQHU7KLVLVDEDVLFSULQFLSOHRI RXU
DQGVHFWVVWULYHWRJURZODUJHUDQGVWURQJHUEXWRXU
FKXUFKDQGLWNHHSVLWSXUH,QRWKHUGHQRPLQDWLRQV
UXOHPXVWUHPDLQWKDWRI NHHSLQJWKHGRRURSHQIRU
RQWKHFRQWUDU\RQFHDQ\WKLQJLVLQWURGXFHGLWHQ
HYHU\RQHWROHDYHXV\HWRI EHLQJPRUHFDXWLRXVLQ
GXUHVLQVSLWHRI WKHUHEHLQJQHLWKHUVSLULWQRUSRZHU
DGPLWWLQJ WKHP ,W LV WR EH IHDUHG WKDW LQ WLPH RXU
LQLWDQ\ORQJHU+DPLOWRQ
FKXUFKPD\VLFNHQGXHWRLWVODUJHQHVVUDWKHUWKDQLWV
VPDOOQHVV+DPLOWRQ
:KDWWKH0RUDYLDQVKDGZDVUDUHHYHQLQWKHLUGD\7KH\
ZHUH DEOH WR EH UDGLFDOO\ XQLHG LQ SXUSRVH DQG
6RXQGV OLNH WRGD\V WUHQG RI VHHNHU VHQVLWLYH
GHVLJQZLWKRXWEHLQJMXGJPHQWDOWRZDUGRWKHUV
FKXUFKHV ZLWK DOO WKHLU DPXVHPHQWV DQG
7KH 0RUDYLDQ VSLULW ZDV VXUSULVLQJO\ RSHQ
HQWLFHPHQWVZRXOGQWJRRYHUWRRZHOOZLWK
7KH
WR RWKHU VLQFHUH EHOLHYHUV 7KH\ FHUWDLQO\
&RXQW=LQ]HQGRUI
0RUDYLDQVVDZ
GLGQWIHHOWKDWWKHVHEURWKHUO\DJUHHPHQWV
6WDQGDUGV"
DGGHG WR WKHLU VDOYDWLRQ %XW DV IDU DV
WKHLUFKXUFKPRUH
&KXUFKVWDQGDUGVDUHDKRWWRSLFWKHVH LQWHUPVRID0DULQH WKHLU ORFDO FRPPXQLW\ ZDV FRQFHUQHG
GD\V 4XHVWLRQV VXFK DV ,V LW ULJKW IRU
WKH\IHOWWKH+RO\6SLULWZDQWHGWRPDNH
&RUSVWKDQDVRFLDO
D FKXUFK WR KDYH EURWKHUO\ DJUHHPHQWV
D WHVWLPRQ\ RI WKHLU XQLW\ 7KHUHIRUH
FOXE
DERXW VSHFLF WKLQJV WKDW WKH\ IHHO WKH
WKH\ VXEPLWWHG WR WKH 6SLULW LQ HYHU\WKLQJ
+RO\ 6SLULW LV WHOOLQJ WKH FRQJUHJDWLRQ"
WKH\ GLG :KHQ GRLQJ WKLV WKH\ NQHZ WKDW
:KDWGR\RXGRLIVRPHRQHGRHVQRWZDQWWR
HYHU\WKLQJPXVWEHGRQHLQIHDUDQGWUHPEOLQJ
NHHS WKH DJUHHPHQWV RI WKH EURWKHUKRRG" ,I DQ
EHIRUHD*RGZKRVHHVWRWKHKHDUW
DJUHHPHQWKDVORVWLWVPHDQLQJVKRXOGZHNHHSLWRUGLV
/LNHPH\RXPD\EHDVNLQJ6RZKDWNLQGRIWKLQJV
FDUGLW",ZDVVXUSULVHGWRGLVFRYHUWKDWTXHVWLRQVVXFKDV GLGWKH\IHHOWKH\ZDQWHGWKHFRPPXQLW\WRUHSUHVHQW"
WKHVHZHUHSUHYDOHQWLQWKHLUGD\DVZHOO
+HUH DUH D IHZ RI WKH WKLQJV WKH\ KDPPHUHG RXW LQ WKH
:KHQ , UVW VWDUWHG UHDGLQJ DERXW WKH 0RUDYLDQV , EURWKHUVPHHWLQJV:KHQ\RXUHDGWKHPUHPHPEHUWKDW
IRXQGSHRSOHVD\LQJWKDWVLQFHWKH\ZHUHRIFLDOO\FDOOHG LWZDVDEVROXWHSXUSRVHDQGGHGLFDWLRQWKH\ZHUHDIWHU
3LHWLVWVWKH\RQO\IRFXVHGRQWKHLQQHUOLIHDQGZHUHQRW ,OOPHQWLRQRQO\DIHZKHUHWRVKRZKRZWKH\GDUHGWR
SDUWLFXODUO\FRQFHUQHGDERXWH[WHUQDOWKLQJV$QGZKLOHLW VSHDNDERXWGHWDLODERXWFORWKHV
LVWUXHWKDWWKH0RUDYLDQVGLGLQGHHGVWUHVVWKHLPSRUWDQFH
 7KH EURWKHUV VKDOO QRW ZHDU DQ\ IUHVK FRORUV
RIWKHLQQHUOLIHWRVD\WKDWWKH\GLGQWFDUHDERXWH[WHU
OD\GRZQ FROODUV RU ODSHOV GRXEOHEUHDVWHG FRDWV XQ
QDOVLVGLVKRQHVWDQGPLVVHVDQLPSRUWDQWDVSHFWRIWKHLU
QHFHVVDU\SOHDWVRUVWDUFKHGJDUPHQWV%XWWKHRQHZKR
VWLOOKDVFORWKHVOLNHWKLVLVDOORZHGWRZHDUWKHPRXW
VSLULWXDOLW\ , IRXQG WKDW WKH\ VDZ WKHLU FKXUFK PRUH LQ
 7KHVLVWHUVVKDOOQRWZHDUDQ\W\SHRIODFHRU
WHUPVRID0DULQH&RUSVWKDQDVRFLDOFOXE7RWKHPHY
HPEURLGHU\RQWKHLUGUHVVHVQRUODF\YHLOV7KH\VKDOO
HU\WKLQJPDWWHUHG$WDEURWKHUVPHHWLQJLQ%HWKOHKHP
QRWXVHVKHHUPDWHULDOVIDQF\KHDGEDQGVEXWWRQVRU
=LQ]HQGRUIFRPPHQWHG
ULEERQVQRUVKDOOWKH\XVHZKLWH\DUQWRGHFRUDWHWKHLU
,QDFRQJUHJDWLRQRI -HVXVQRWKLQJVKRXOGEHGRQH
FORWKHV7KH\VKDOOQRWZHDUZKLWHJORYHVQRUZKLWH
DSDWKHWLFDOO\ DQG E\ KDOI  PHDVXUHV EXW HYHU\WKLQJ
RU FRORUHG VWRFNLQJV FRORUIXO FDSV RU DQ\ IUHVK RU
VKRXOGJRRQZLWKFRQVWDQWXQLIRUPLW\DQGFRQVFL
EULJKWFRORUVZKDWVRHYHU7KH\VKDOOXVHQRFRORUIXO
HQWLRXVQHVV
ULEERQVLQWKHLUERQQHWVEXWRQO\EODFNRUEOXHRQHV
1R 0RUDYLDQV ZHUH QRW DW DOO DIUDLG RI EURWKHUKRRG
5HGVWULSHGRUEOXHSULQWHGDSURQVDUHWREHG\HGVROLG
DJUHHPHQWV+RZHYHUWKH\DOVREHOLHYHGWKDWHYHU\WKLQJ
EOXHRQERWKVLGHV1RSULQWHGFRWWRQVKDOOEHZRUQ
ZDVGRQHIRUDUHDVRQ,IWKHVWDQGDUGORVWLWVPHDQLQJRU
H[FHSWIRUZLQWHUKHDGFRYHULQJVZKHUHSODLQEURZQ
UHDVRQIRUEHLQJWKH\IHOWWKDWLWVKRXOGEHGLVFDUGHGRU
LVDOORZHGEXWQRPXOWLFRORUHGSULQWV
FKDQJHG=LQ]HQGRUIDGGUHVVLQJZKDWVKRXOGEHGRQHLI
 3RLQWHGVKRHVDQGVOLSSHUVVKDOOQRORQJHUEH
VWDQGDUGVEHFRPHHPSW\RUVODFNUHPDUNV
ZRUQQRUVKRHVZLWKKLJKKHHOV)RUPWWLQJRUVKRUW
VOHHYHGMDFNHWVVKDOOQRWEHZRUQQRUUXIHGFORWKLQJ

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

0RUDYLDQPLVVLRQVLQWKH
$WODQWLFDUHD1RWVKRZQ
DUHWKHPLVVLRQVLQ5XVVLD
1HSDO6RXWK$IULFDDQG
PDQ\RWKHUSODFHV
$IWHUDIHZ\HDUV
6D[RQ\JRYHUQPHQW
RIFLDOVIRUEDGHDQ\PRUH
0RUDYLDQVWRVHWWOHDW
+HUUQKXWVRDZRUOGZLGH
KXQWIRUFRORQ\ORFDWLRQV
EHJDQ0L[HGZLWK
PLVVLRQDU\]HDOWKHVH
FRORQL]DWLRQVOHG0RUDYLDQV
LQWRDOOWKHZRUOG
QRUVWUDZKDWVWKDWFRVWPRUHWKDQWZR*URVFKHQ+DW
EDQGVVKDOOEHRIXQFRORUHGURXJKOLQHQRQO\&ORWK
SULQWHGRQDZKLWHEDFNJURXQGVKDOORQO\KDYHEODFN
SDWWHUQVDQGQRELJRZHUHGRUDVK\GHVLJQV
 7KHRQHZKRGRHVQRWIROORZWKLVSUHVFULEHG
PDQQHURIGUHVVLQJH[DFWO\VKDOOEHH[FOXGHGIURP
WKH *HPHLQH >FRPPXQLW\@ DQG VKRXOG QRW EH VXU
SULVHGLILQKLVVWXEERUQQHVVKHGRHVQRWJHWLQFOXGHG
LQIXWXUHDFWLYLWLHV+RRYHU
%\WRGD\VWDVWHWKHVHVWDQGDUGVRQFORWKHVPD\VHHPD
ELWRYHUWKHWRS+RZHYHU,QGLWLQWHUHVWLQJWKDWHYHQ
LQ WKHLU GD\ RWKHU JURXSV QRWLFHG WKHLU XQLW\ DQG ZURWH
DERXW LW -RKQ:HVOH\ VSHDNLQJ ODWH LQ KLV OLIH ZURWH D
VXUSULVLQJO\SDLQIXOOHWWHUDQJXLVKLQJRYHUWKHIDFWWKDWKH
KDGQRWOHGWKH0HWKRGLVWVRFLHWLHVLQWKLVFRXUVH
,DPGLVWUHVVHG,NQRZQRWZKDWWRGR,VHHZKDW
,PLJKWKDYHGRQHRQFH:LWKUHJDUGWRGUHVVLQ
SDUWLFXODU,PLJKWKDYHEHHQDVUPDQG,QRZVHHLW
ZRXOGKDYHEHHQIDUEHWWHUDVHLWKHUWKHSHRSOHFDOOHG
4XDNHUVRUWKH0RUDYLDQ%UHWKUHQ,PLJKWKDYH
VDLG7KLVLVRXUPDQQHURI GUHVVZKLFKZHNQRZLV
ERWKVFULSWXUDODQGUDWLRQDO,I \RXMRLQZLWKXV\RX
DUHWRGUHVVDVZHGREXW\RXQHHGQRWMRLQXVXQOHVV
\RXSOHDVH%XWDODV7KHWLPHLVQRZSDVWDQGZKDW
,FDQGRQRZ,FDQQRWWHOO:HVOH\6HUPRQV

3UD\HU:DWFK
$V,PHQWLRQHGHDUOLHUDSRZHUIXOZLWQHVVRISUD\HU
ZDVELUWKHGIURPWKHLURULJLQDOUHYLYDO:KHQ,VWDUWHGUH
VHDUFKLQJ WKH 0RUDYLDQV , MXVW KDG WR QG RXW ZKHWKHU
WKLV SUD\HU PHHWLQJ ZDV UHDO , ZDV EOHVVHG WR GLVFRYHU

WKDWULJKWWKHUHLQWKH%HWKOHKHPMRXUQDOVULJKWDORQJZLWK
WKHRWKHUSUDFWLFDOGHWDLOVRIFRPPXQLW\OLIHZDVWKHLULQ
VLVWHQFHRQWKHFRQWLQXLQJQHHGRISUD\HU7RP\DPD]H
PHQW,GLVFRYHUHGWKHDFWXDOQDPHVDQGWLPHVFKURQLFOLQJ
WKHIDLWKRIWKRVHVROGLHUVWKDWNHSWZDWFKWKURXJKRXWWKH
GD\DQGQLJKW$VDPDWWHURIIDFWWKHVHSUD\HUZDWFKHV
ZHUHVRLPSRUWDQWWRWKHPWKDWLI\RXZHUHQRWSDUWRIWKH
SUD\HU ZDUULRU WHDP WKHQ \RX ZHUH QRW ZHOFRPH LQ WKH
EURWKHUVPHHWLQJ+DPLOWRQ

'HWDLOHGSODQRIHYDQJHOLVP
$VVRRQDVWKHEURWKHUVDQGVLVWHUVVHWIRRWLQWR%HWK
OHKHPWKH\VWDUWHGPDNLQJSODQVIRUHYDQJHOLVP,QDG
GLWLRQ WR WKHLU H[WHQVLYH PLVVLRQIRUJLQJ HQGHDYRUV WKH
0RUDYLDQV DOVR IHOW WKDW ORFDO PLVVLRQV VKRXOG QRW EH
QHJOHFWHG 7KH %HWKOHKHP 'LDU\ UHFRUGV WKDW WKH\ KDG
GLIIHUHQWFDWHJRULHVRIHYDQJHOLVWVDOOZRUNLQJDWGLIIHU
HQWWLPHVDQGSODFHV7KHUVWFODVVLFDWLRQZDVDJURXS
FDOOHG VKHUV 7KHVH HYDQJHOLVWV ZHUH WR JR LQ WKH
FRXQWU\VLGH7KHLUMREZDVWRZLQWKHORFDOVWRWKH/RUG
ERWK,QGLDQDQGRWKHUV1H[WZHUHWKHUXUDOPLQLVWHUV
7KH\ZHUHWRJRDOLWWOHIXUWKHUIURPWKHKRPHEDVHDQG
ZHUHFRQVHTXHQWO\DZD\RQDPRUHIXOOWLPHEDVLV6RPH
RIWKHVHZHUHFRPPLVVLRQHGWRJRWRDVSHFLF,QGLDQQD
WLRQ )LQDOO\ WKH\ KDG WKHLU IDPRXV PHVVHQJHUV WR WKH
KHDWKHQZKLFKWRRNWKH*RVSHOWRWKHHQGVRIWKHHDUWK
+DPLOWRQ
:KHQWKH\VWDUWHGDQHZZRUNDPRQJWKH,QGLDQVWKH
0RUDYLDQVFRSLHGWKHFRORQ\SDWWHUQHVWDEOLVKHGDW%HWK
OHKHPDQG+HUUQKXW$OODURXQGWKHZRUOGOLWWOHPLVVLRQ
FRPPXQLWLHVVWDUWHGSRSSLQJXS2QHRIWKHJUHDWHVWDG

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

0DSRIWKHORFDORXWUHDFKHV
IURPWKHWZRPDLQ0RUDYLDQ
VHWWOHPHQWVLQWKH8QLWHG
6WDWHV
1RWVKRZQDUHWKHPDQ\
PLVVLRQVWRWKH1DWLYH
$PHULFDQV
'DYLG=HLVEHUJHUIRU
H[DPSOHKHOSHGWRIRXQG
DERXW&KULVWLDQ,QGLDQ
YLOODJHVLQ3HQQV\OYDQLD
2KLR1HZ<RUN0LFKLJDQ
DQG2QWDULR7KHVHQDWLYH
FRQYHUWVODLGWKHZDU
KDWFKHWDVLGHDQGIROORZHG
&KULVWLQQRQUHVLVWDQFH
$OFRKROZDVWRWDOO\EDQQHG
IURPWKHVHYLOODJHVDVZHOO

YDQWDJHVRIWKHVHFRPPXQLWLHVZDVWKDWWKH\FRQYHUWHG
HGXFDWHG DQG GLVFLSOHG WKH QHZ FRQYHUWV 2QFH HVWDE
OLVKHGLQWKHIDLWKWKHVHOLWWOHFRPPXQLWLHVFRQWLQXHGWKH
SDWWHUQDQGVHWXSWKHLURZQOLWWOHPLVVLRQFRPPXQLWLHV
1RWDOORIWKHVHOLWWOHQDWLYHFRORQLHVZHUHDVFRPPXQDO
DV%HWKOHKHPEXWDOORIWKHPFDUULHGWKHVDPH0RUDYLDQ
VSLULWRIFRPPXQLW\DQGFRPPRQSXUSRVHDQGWKH\ZHUH
DOOGHYRWHGWRVHUYLQJWKH/DPEZLWKHYHU\WKLQJWKH\KDG
6SHDNLQJRIWKH,QGLDQVDFFHSWDQFHRIWKLVFRORQ\VWUXF
WXUH (QJHO ZURWH 7KH 'HODZDUH DQG 0RKLFDQ ,QGLDQV
OLYHG LQ DQ H[WHQGHG VHULHV RI QHWZRUNV WKDW VWUHWFKHG
WKURXJKRXWWKHUHJLRQ7KHDGYHQWRIWKH0RUDYLDQPLV
VLRQVDVDQHZIRUPRIQDWLYHFRPPXQLW\WKXVWZLWKLQD
SDWWHUQDOUHDG\IDPLOLDUWRWKH,QGLDQV(QJHO

,WZRUNHG
2YHUWLPHWKHPLVVLRQVWRWKHORFDO$PHULFDQ,QGLDQV
SURYHGYHU\VXFFHVVIXO%\WKHUHZHUH$PHUL
FDQ,QGLDQVOLYLQJLQ%HWKOHKHPDORQHRIWKHPKDG
DFWXDOO\EHFRPHDSDUWRIWKHFRPPXQLW\(FRQRP\,Q
DGGLWLRQ WR WKHVH ,QGLDQ FRQYHUWV WKH EURWKHUKRRG DOVR
FRQWLQXHG WR JURZ DPRQJ (XURSHDQ FRQYHUWV 7RJHWKHU
ZLWKHYHU\RQHZRUNLQJDVDQDWLRQRISULHVWVWKH\JUHZ
LQSHUVRQDOKROLQHVVDQGODERUHGWRVSUHDGWKH*RVSHOWR
WKHHQWLUHZRUOG

,PDUYHODWDOOWKHSHRSOHJURXSVDQGFRXQWULHVWKHVH
OLWWOH FRPPXQLWLHV ZHUH DEOH WR UHDFK$IWHU KHDULQJ RI
WKHLUVXFFHVVIXOPLVVLRQVLWPDNHVPHDVNP\VHOI-XVW
KRZVHULRXVDP,DERXWUHDFKLQJWKHORVW",IZHDVFKXUFK
HVZHUHWKLVVHULRXVZKDWFRXOGZHDFFRPSOLVK"
+HUHDUHDIHZRIWKHPLVVLRQVHWWOHPHQWVWKDW,ZDV
DEOHWRLGHQWLI\IRUWKHDUWLFOH%HJLQQLQJZLWKWKH
PLVVLRQ WR 6W 7KRPDV WKH PLVVLRQDULHV DOVR UHDFKHG
*UHHQODQG  6XULQDPH  *HRUJLD 
6RXWK $IULFD  *ROG &RDVW  6ZLW]HUODQG
 1HZ<RUN  (QJODQG  &RQQHFWLFXW
 6RXWK $IULFD  :DOHV  0DU\ODQG
 1RUWK &DUROLQD  -DPDLFD  ,QGLD
DQGWKDWVQRWDOOFRXQWOHVVRWKHUVFRXWLQJWULSV
DQG VKRUW WHUP PLQLVWULHV ZHUH JRLQJ RQ DOO WKH WLPH LQ
PDQ\RWKHUSODFHV

6RZKDWKDSSHQHG"
$ERXW\HDUVDIWHU%HWKOHKHPVWDUWHG$PHULFDGH
FODUHGLWVLQGHSHQGHQFHZLWK(QJODQGDQGHQGHGXSLQWKH
5HYROXWLRQDU\:DU6LQFHWKH0RUDYLDQVZHUHQRQUHVLV
WDQWDQGWKHUHIRUHUHIXVHGWRJRWRZDUZLWK(QJODQGWKHLU
SDWULRWLFQHLJKERUVPLVWRRNWKHPDVOR\DOLVWVWR(QJODQG
0RUDYLDQV WKHQ EHFDPH YHU\ XQSRSXODU 7KH\ VXIIHUHG
PXFK UHSURDFK DQG VRPH SHUVHFXWLRQ 'XULQJ WKLV WLPH
VRPHRIWKHLUVWURQJQRQUHVLVWDQWLGHDVEHJDQWRZHDNHQ

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\

$OVR LQ WLPH WKHLU SUHYLRXVO\ UDGLFDO SLOJULP ZD\ 6R LI \RX HYHU PDNH LW WR %HWKOHKHP 3HQQV\OYDQLD EH
RIOLIHPDGHZD\IRUDPRUHPRGHUDWHKRXVHKROGPRGHO VXUH \RX JR WR WKH ROG JUDYH\DUG *RGV$FUH ,I \RX
(YHQWXDOO\ D PRUH PRGHUDWH RU UHOHYDQW 0RUDYLDQ KDYHDELWRIDQLPDJLQDWLRQ\RXFDQVWLOOLPDJLQHWKRVH
FKXUFKHYROYHG6RPHIHOWWKDWWKLVQHZ0RUDYLDQFKXUFK VDLQWVWKDWZDONHGWKRVHJURXQGVDIHZKXQGUHG\HDUVDJR
ZDVKHDOWKLHUDQGPRUHEDODQFHG7KH\IHOWLWZDVJRRG ,Q WKRVH GD\V RQ 5HVXUUHFWLRQ 0RUQLQJ LQ HDFK RI WKH
WKDWWKH\KDGVKHGWKHLUH[WUHPHSUDFWLFHVDQGURXJKHGJ
OLWWOHFRPPXQLWLHVDURXQGWKHZRUOGWKHZKROHFRPPXQLW\
HVRIWKHSDVW
ZRXOGFRPHRXWDQGFLUFOHWKHJUDYH\DUG$WVXQULVHWKH\
$VIRUPHZKHQ,JRWKHUH,FDQW
ZRXOG VLQJ DQG SUD\ WR WKH /DPE
KHOS EXW PRXUQ WKH ORVV , IHHO WKDW
7KH\ VDQJ LQ HDUQHVW H[SHFWDWLRQ
VRPHWKLQJUDUHDQGSUHFLRXVRQWKLV
DQWLFLSDWLQJ WKH WLPH ZKHQ WKHVH
HDUWK KDV EHHQ IRUHYHU ORVW 0DQ\
VHHGVRIWKHUHVXUUHFWLRQZRXOGRQH
RI WKH ROG EXLOGLQJV DUH VWLOO WKHUH
GD\ ULVH ZLWK WKHP $FWXDOO\ WKDWV
9LVLWRUVDUHPHWE\PXVHXPVTXDOLW\
ZK\ WKH\ FDOOHG LW *RGV $FUH
EXLOGLQJVFREEOHVWRQHVWUHHWVTXDLQW
7KH\ ZDLWHG IRU WKH KDUYHVW ZKHQ
VKRSV DQG UHVWDXUDQWV OLPHVWRQH
WKHHOGKDYLQJEHHQVHHGHGSODQWHG
URFNZRUNDQGVFDWWHUHGEOXHKLVWRUL
DQG ZDWHUHG ZRXOG ULVH DJDLQ
FDOPDUNHUVLJQVWHOOLQJRIDSHRSOH
WKH FKXUFK PLOLWDQW DQG WKH FKXUFK
FHQWXULHVDJRZKRFDUYHGRXWDKHDY
WULXPSKDQWSUDLVLQJWKHLU/DPEWKDW
$W*RGV$FUHRQ(DVWHUPRUQLQJ ZDVVODLQIRUHYHUDQGHYHUDQGHYHU
HQO\FLW\IURPWKHZLOGHUQHVV
FHOHEUDWLQJWKHUHVXUUHFWLRQ
%XW WKRVH GD\V DUH ORQJ JRQH
)LQGVRPHRIWKHROGJUDYHVWRQHV
:KLOH , FDQW VD\ IRU VXUH WKHUH DUH
RI VDLQWV OLNH 'DYLG 1LWVFKPDQQ
QRUDGLFDOLQGLYLGXDOVWKHUHWRGD\ZKRPLJKWKDYHDVLPL
7KHQFDVW\RXUJODQFHDFURVVWKHHOGDQGVXUYH\DOOWKRVH
ODURWKHUZRUOGO\PLQGVHW,FDQGHQLWHO\WHOO\RXWKHUH ,QGLDQQDPHV%XWGRQWVWRSWKHUH'DUHWRDVN\RXUVHOI
DUHQRFKXUFKHVLQH[LVWHQFHWRGD\OLNHWKHRQHZHYHMXVW D VHDUFKLQJ TXHVWLRQ :KDWV VWRSSLQJ XV IURP GRLQJ
GLVFXVVHG7KLQJVDUHGLIIHUHQWQRZ+LVWRULDQ-DFRE6HV
WKLVWRGD\LVQW*RGZRUWKLW"7KHVDLQWVRI%HWKOHKHP
VOHUFORVHVKLVKLVWRU\RIWKH%HWKOHKHP0RUDYLDQVZLWK WKRXJKW+HZDV,VWLOOORYHWKHFU\RIWKDWDQFLHQW0RUD
WKLVWKRXJKW
YLDQPRWWRJLYHQDWWKHHQGRI3DULV5HLGKHDGVVHUPRQ
7HQ 6KHNHOV DQG D 6KLUW 0D\ WKH /DPE WKDW ZDV VODLQ
:KHUH RQFH WKH 3LOJULP &RQJUHJDWLRQ ZHQW IRUWK
UHFHLYHWKHUHZDUGRI+LVVXIIHULQJ
WKHLUIHHWVKRGZLWKWKHSUHSDUDWLRQRI WKHJRVSHORI 

&RXOG LW KDSSHQ DJDLQ WRGD\" ,I *RG JLYHV \RX WKH
SHDFHWRGD\VWDQGVWKHWKULYLQJFLW\RI VWHHO 7KHVH
IDLWKWREHOLHYHWKDWLWFRXOGWKHQOHWVSUD\HDUQHVWO\WR
JURXQGVKDOORZHGE\WKHLQFDUQDWLRQRI WKH,QYLVLEOH
JHWKHU'RLWDJDLQ/RUGGRLWDJDLQa
&KXUFKKDYHEHHQGHOHGE\WKHVPRNHDQGVRUGLG
QHVVRI $PHULFDQLQGXVWU\7KHUXOHRI 6SDQJHQEHUJ
%LEOLRJUDSK\
KDVJLYHQZD\WRWKHUXOHRI 6FKZDEDQG%HWKOHKHP
(QJHO.DWKHULQH&DUWH5HOLJLRQDQG3URW0RUDYLDQVLQ
WKRXJKLWFKHULVKHVLWVUHOLJLRXVRULJLQVDVWKHVHDWRI 
(DUO\$PHULFD8QLYHUVLW\RI3HQQV\OYDQLD3UHVV
0RUDYLDQLVPQRZOLYHVRQVWHHO7KHVSLULWWKDWSUH
$YDLODEOHIURP+RSNLQV)XOOOPHQW6HUYLFHVE\FDOOLQJ
YDLOHGZKHQWKHIRRWZDVKLQJDQGWKHNLVVRI SHDFH

ZHUHVLJQLFDQWV\PEROVKDV\LHOGHGWRWKHSULQFLSOHV
*UHHQHOG-RKQ3RZHU)URPRQ+LJK8&&
RI FRPSHWLWLRQDQGPHFKDQLFDOSURJUHVVQHFHVVDULO\
+DPLOWRQ.HQQHWK*7UDQVODWHGDQG(GLWHGE\7KH%HWK
DGRSWHG E\ PRGHUQ 0RUDYLDQ EXVLQHVV PHQ 7KH
OHKHP'LDU\9ROXPH,$UFKLYHVRI0RUDYLDQ
&KXUFK
H[FOXVLYHEURWKHUKRRGKDVORVWERWKLWVIRUPHUKROL
+RRYHU3HWHU%HKROGWKH/DPE5DGLFDO5HIRUPDWLRQ%RRNV
QHVVDQGLWVFRPPXQDOUHJLPH7KHTXLHWGHYRWLRQDO
$YDLODEOHLQIUHHSGIGRZQORDGDWKWWSZZZHOFULV
DWPRVSKHUHRI WKHROG&KRLUKRXVHVVWLOOVWDQGLQJLV
WLDQLVPRSULPLWLYRFRP%HKROGWKH/DPESGI
GLVSODFHGE\WKHFODQJLQJDQGJULQGLQJRI WKHZKHHOV
/HVOLH.7DUU$3UD\HU0HHWLQJWKDW/DVWHG<HDUV
RI LQGXVWU\6HVVOHU
 %HWKOHKHPZDVNQRZQDVWKHFLW\RIVWHHOIURPWKHELJ
VWHHOIDFWRULHVDFUHVORQJ,URQLFDOO\WKHVWHHOLQGXVWU\KDV
IDGHGDZD\DQGSDUWRIWKHROGEXLOGLQJVKDVEHHQUHMXYHQDWHG
LQWRDPLOOLRQFDVLQR
 &KDUOHV06FKZDEZDVWKHKHDGRI%HWKOHKHP6WHHOIRU
PDQ\\HDUV

&KULVWLDQ+LVWRU\9RO1R
6HVVOHU-DFRE-RKQ&RPPXQDO3LHWLVPDPRQJ(DUO\$PHUL
FDQ0RUDYLDQV.HVVLQJHU3XEOLVKLQJ
:HVOH\-RKQ-RKQ:HVOH\6HUPRQV&DXVHVRIWKH
,QHIFDF\RI&KULVWLDQLW\
:HVOH\-RKQ7KH:RUNVRI-RKQ:HVOH\

7KH+HDUWEHDWRIWKH5HPQDQW-DQXDU\)HEUXDU\