Vous êtes sur la page 1sur 58

&LYLOL]DWLRQDQG,WV'LVFRQWHQWV

6LJPXQG)UHXG
::1RUWRQ 

5DWLQJ
7DJV 3V\FKRORJ\ 0RYHPHQWV 3V\FKRDQDO\VLV
%HKDYLRULVP
3V\FKRORJ\WWW 0RYHPHQWVWWW 3V\FKRDQDO\VLVWWW
%HKDYLRULVPWWW

)UHXGVVHPLQDOYROXPHRIWZHQWLHWKFHQWXU\ FXOWXUDOWKRXJKWJURXQGHGLQSV\ FKRDQDO\ WLFWKHRU\QRZZLWKDQHZLQWURGXFWLRQE\ &KULVWRSKHU+LWFKHQV

:ULWWHQLQWKHGHFDGHEHIRUH)UHXGVGHDWK&LYLOL]DWLRQDQG,WV'LVFRQWHQWVPD\ EHKLVPRVWIDPRXVDQGPRVWEULOOLDQWZRUN,WKDVEHHQSUDLVHGGLVVHFWHGODPEDVWHGLQWHUSUHWHGDQG
UHLQWHUSUHWHG2ULJLQDOO\ SXEOLVKHGLQLWVHHNVWRDQVZHUVHYHUDOTXHVWLRQVIXQGDPHQWDOWRKXPDQVRFLHW\ DQGLWVRUJDQL]DWLRQ:KDWLQIOXHQFHVOHGWRWKHFUHDWLRQRIFLYLOL]DWLRQ"
:K\ DQGKRZGLGLWFRPHWREH":KDWGHWHUPLQHVFLYLOL]DWLRQVWUDMHFWRU\ ")UHXGVWKHRULHVRQWKHHIIHFWRIWKHNQRZOHGJHRIGHDWKRQKXPDQH[LVWHQFHDQGWKHELUWKRIDUWDUHFHQWUDO
WRKLVZRUN2IWKHYDULRXV(QJOLVKWUDQVODWLRQVRI)UHXGVPDMRUZRUNVWRDSSHDULQKLVOLIHWLPHRQO\ 1RUWRQV6WDQGDUG(GLWLRQXQGHUWKHJHQHUDOHGLWRUVKLSRI-DPHV6WUDFKH\ZDV
DXWKRUL]HGE\ )UHXGKLPVHOI7KLVQHZHGLWLRQLQFOXGHVERWKDQLQWURGXFWLRQE\ WKHUHQRZQHGFXOWXUDOFULWLFDQGZULWHU&KULVWRSKHU+LWFKHQVDVZHOODV3HWHU*D\ VFODVVLFELRJUDSKLFDO
QRWHRQ)UHXG

,WVWDQGVDVDEULOOLDQWVXPPDU\ RIWKHYLHZVRQFXOWXUHIURPDSV\ FKRDQDO\ WLFSHUVSHFWLYHWKDWKHKDGEHHQGHYHORSLQJVLQFHWKHWXUQRIWKHFHQWXU\,WLVERWKZLWQHVVDQGWULEXWHWRWKH


ODWHWKHRU\ RIPLQGWKHVRFDOOHGVWUXFWXUDOWKHRU\ZLWKLWVVWUHVVRQDJJUHVVLRQLQGHHGWKHGHDWKGULYHDVWKHSLWLOHVVDGYHUVDU\ RIHURV&LYLOL]DWLRQDQG,WV'LVFRQWHQWVLVRQHRIWKH
ODVWRI)UHXG
VERRNVZULWWHQLQWKHGHFDGHEHIRUHKLVGHDWKDQGILUVWSXEOLVKHGLQ*HUPDQLQ,QLWKHVWDWHVKLVYLHZVRQWKHEURDGTXHVWLRQRIPDQ
VSODFHLQWKHZRUOGDSODFH
)UHXGGHILQHVLQWHUPVRIFHDVHOHVVFRQIOLFWEHWZHHQWKHLQGLYLGXDO
VTXHVWIRUIUHHGRPDQGVRFLHW\
VGHPDQGIRUFRQIRUPLW\)UHXG
VWKHPHLVWKDWZKDWZRUNVIRUFLYLOL]DWLRQGRHVQ
W
QHFHVVDULO\ ZRUNIRUPDQ0DQE\ QDWXUHDJJUHVVLYHDQGHJRWLVWLFDOVHHNVVHOIVDWLVIDFWLRQ%XWFXOWXUHLQKLELWVKLVLQVWLQFWXDOGULYHV7KHUHVXOWLVDSHUYDVLYHDQGIDPLOLDUJXLOW2IWKH
YDULRXV(QJOLVKWUDQVODWLRQVRI)UHXG
VPDMRUZRUNVWRDSSHDULQKLVOLIHWLPHRQO\ RQHZDVDXWKRUL]HGE\ )UHXGKLPVHOI7KH6WDQGDUG(GLWLRQRIWKH&RPSOHWH3V\ FKRORJLFDO:RUNVRI
6LJPXQG)UHXGXQGHUWKHJHQHUDOHGLWRUVKLSRI-DPHV6WUDFKH\)UHXGDSSURYHGWKHRYHUDOOHGLWRULDOSODQVSHFLILFUHQGHULQJVRINH\ ZRUGVDQGSKUDVHVDQGWKHDGGLWLRQRIYDOXDEOH
QRWHV IURP ELEOLRJUDSKLFDO DQG H[SODQDWRU\ 0DQ\  RI WKH WUDQVODWLRQV ZHUH GRQH E\  6WUDFKH\  KLPVHOI WKH UHVW ZHUH SUHSDUHG XQGHU KLV VXSHUYLVLRQ 7KH UHVXOW ZDV WR SODFH WKH
6WDQGDUG(GLWLRQLQDSRVLWLRQRIXQTXHVWLRQHGVXSUHPDF\ RYHUDOORWKHUH[LVWLQJYHUVLRQV
7DEOHRI&RQWHQWV

&LYLOL]DWLRQDQG,WV'LVFRQWHQWV&RYHU3DJH &LYLOL]DWLRQDQG,WV'LVFRQWHQWV
,
%\
,,

,,,
6,*081')5(8'
,9

9 
9,

9,,

9,,,
&LYLOL]DWLRQDQG,WV'LVFRQWHQWV

7+( LPSUHVVLRQ IRUFHV LWVHOI XSRQ RQH WKDW PHQ PHDVXUH E\


IDOVH VWDQGDUGV WKDW HYHU\RQH VHHNV SRZHU VXFFHVV ULFKHV IRU
KLPVHOIDQGDGPLUHVRWKHUVZKRDWWDLQWKHPZKLOHXQGHUYDOXLQJ
WKHWUXO\SUHFLRXVWKLQJVLQOLIH$QG\HWLQPDNLQJDQ\JHQHUDO
MXGJPHQW RI WKLV NLQG RQH LV LQ GDQJHU RI IRUJHWWLQJ WKH
PDQLIROG YDULHW\ RI KXPDQLW\ DQG LWV PHQWDO OLIH 7KHUH DUH
FHUWDLQ PHQ IURP ZKRP WKHLU FRQWHPSRUDULHV GR QRW ZLWKKROG
YHQHUDWLRQ DOWKRXJK WKHLU JUHDWQHVV UHVWV RQ DWWULEXWHV DQG
DFKLHYHPHQWV ZKLFK DUH FRPSOHWHO\ IRUHLJQ WR WKH DLPV DQG
LGHDOV RI WKH PXOWLWXGH 2QH PLJKW ZHOO EH LQFOLQHG WR VXSSRVH
WKDWDIWHUDOOLWLVRQO\DPLQRULW\ZKRDSSUHFLDWHWKHVHJUHDWPHQ
ZKLOH WKH PDMRULW\ FDUHV QRWKLQJ IRU WKHP %XW WKH GLVFUHSDQF\
EHWZHHQPHQVRSLQLRQVDQGWKHLUEHKDYLRXULVVRZLGHDQGWKHLU
GHVLUHVVRPDQ\VLGHGWKDWWKLQJVDUHSUREDEO\QRWVRVLPSOH

2QH RI WKHVH H[FHSWLRQDO PHQ FDOOV KLPVHOI P\ IULHQG LQ KLV
OHWWHUV WR PH , KDG VHQW KLP P\ OLWWOH ERRN ZKLFK WUHDWV RI
UHOLJLRQ DV DQ LOOXVLRQ DQG KH DQVZHUHG WKDW KH DJUHHG HQWLUHO\
ZLWK P\ YLHZV RQ UHOLJLRQ EXW WKDW KH ZDV VRUU\ , KDG QRW
SURSHUO\DSSUHFLDWHGWKHXOWLPDWHVRXUFHRIUHOLJLRXVVHQWLPHQWV
7KLV FRQVLVWV LQ D SHFXOLDU IHHOLQJ ZKLFK QHYHU OHDYHV KLP
SHUVRQDOO\ZKLFKKHILQGVVKDUHGE\PDQ\RWKHUVDQGZKLFKKH
PD\VXSSRVHPLOOLRQVPRUHDOVRH[SHULHQFH,WLVDIHHOLQJZKLFK ZKHWKHU LW KDV EHHQ FRUUHFWO\ LQWHUSUHWHG DQG ZKHWKHU LW LV
KH ZRXOG OLNH WR FDOO D VHQVDWLRQ RI HWHUQLW\ D IHHOLQJ DV RI HQWLWOHGWREHDFNQRZOHGJHGDVWKHIDQVHWRULJRRIWKHZKROH
VRPHWKLQJ OLPLWOHVV XQERXQGHG VRPHWKLQJ RFHDQLF ,W LV KH QHHGIRUUHOLJLRQ
VD\V D SXUHO\ VXEMHFWLYH H[SHULHQFH QRW DQ DUWLFOH RI EHOLHI LW
LPSOLHVQRDVVXUDQFHRISHUVRQDOLPPRUWDOLW\EXWLWLVWKHVRXUFH  &KULVWLDQ *UDEEH +DQQLEDO -D DXV GHU :HOW ZHUGHQ ZLU
RI WKH UHOLJLRXV VSLULW DQG LV WDNHQ KROG RI E\ WKH YDULRXV QLFKWIDOOHQ:LUVLQGHLQPDOGDULQ
&KXUFKHV DQG UHOLJLRXV V\VWHPV GLUHFWHG E\ WKHP LQWR GHILQLWH
FKDQQHOVDQGDOVRQRGRXEWXVHGXSLQWKHP2QHPD\ULJKWO\ 6RXUFHDQGRULJLQ
FDOORQHVHOIUHOLJLRXVRQWKHJURXQGRIWKLVRFHDQLFIHHOLQJDORQH
HYHQWKRXJKRQHUHMHFWDOOEHOLHIVDQGDOOLOOXVLRQV7KHVHYLHZV
H[SUHVVHG E\ P\ IULHQG ZKRP , VR JUHDWO\ KRQRXU DQG ZKR , KDYH QRWKLQJ WR VXJJHVW ZKLFK FRXOG HIIHFWLYHO\ VHWWOH WKH
KLPVHOIRQFHLQSRHWU\GHVFULEHGWKHPDJLFRILOOXVLRQSXWPHLQ VROXWLRQ RI WKLV SUREOHP 7KH LGHD WKDW PDQ VKRXOG UHFHLYH
D GLIILFXOW SRVLWLRQ , FDQQRW GLVFRYHU WKLV RFHDQLF IHHOLQJ LQ LQWLPDWLRQ RI KLV FRQQHFWLRQ ZLWK WKH VXUURXQGLQJ ZRUOG E\ D
P\VHOI,WLVQRWHDV\WRGHDOVFLHQWLILFDOO\ZLWKIHHOLQJV2QHPD\ GLUHFWIHHOLQJZKLFKDLPVIURPWKHRXWVHWDWVHUYLQJWKLVSXUSRVH
DWWHPSWWRGHVFULEHWKHLUSK\VLRORJLFDOVLJQV VRXQGV VR VWUDQJH DQG LV VR LQFRQJUXRXV ZLWK WKH VWUXFWXUH RI
RXU SV\FKRORJ\ WKDW RQH LV MXVWLILHG LQ DWWHPSWLQJ D SV\FKR
:KHUHWKDWLVLPSRVVLEOH,DPDIUDLGWKHRFHDQLFIHHOLQJWRRZLOO DQDO\WLF WKDW LV JHQHWLF H[SODQDWLRQ RI VXFK D IHHOLQJ
GHI\WKLVNLQGRIFODVVLILFDWLRQQRWKLQJUHPDLQVEXWWRWXUQWRWKH :KHUHXSRQ WKH IROORZLQJ OLQHV RI WKRXJKW SUHVHQW WKHPVHOYHV
LGHDWLRQDO FRQWHQW ZKLFK PRVW UHDGLO\ DVVRFLDWHV LWVHOI ZLWK WKH 1RUPDOO\WKHUHLVQRWKLQJZHDUHPRUHFHUWDLQRIWKDQWKHIHHOLQJ
IHHOLQJ ,I , KDYH XQGHUVWRRG P\ IULHQG DULJKW KH PHDQV WKH RIRXUVHOIRXURZQHJR,WVHHPVWRXVDQLQGHSHQGHQWXQLWDU\
VDPH WKLQJ DV WKDW FRQVRODWLRQ RIIHUHG E\ DQ RULJLQDO DQG WKLQJ VKDUSO\ RXWOLQHG DJDLQVW HYHU\WKLQJ HOVH 7KDW WKLV LV D
VRPHZKDW XQFRQYHQWLRQDO ZULWHU WR KLV KHUR FRQWHPSODWLQJ GHFHSWLYH DSSHDUDQFH DQG WKDW RQ WKH FRQWUDU\ WKH HJR H[WHQGV
VXLFLGH2XWRIWKLVZRUOGZHFDQQRWIDOO6RLWLVDIHHOLQJRI LQZDUGV ZLWKRXW DQ\ VKDUS GHOLPLWDWLRQ LQWR DQ XQFRQVFLRXV
LQGLVVROXEOHFRQQHFWLRQRIEHORQJLQJLQVHSDUDEO\WRWKHH[WHUQDO PHQWDO HQWLW\ ZKLFK ZH FDOO WKH LG DQG WR ZKLFK LW IRUPV D
ZRUOG DV D ZKROH 7R PH SHUVRQDOO\ , PD\ UHPDUN WKLV VHHPV IDFDGHZDVILUVWGLVFRYHUHGE\SV\FKRDQDO\WLFUHVHDUFKDQGWKH
VRPHWKLQJPRUHLQWKHQDWXUHRIDQLQWHOOHFWXDOMXGJPHQWQRWLW ODWWHUVWLOOKDVPXFKWRWHOOXVDERXWWKHUHODWLRQVRIWKHHJRWRWKH
LVWUXHZLWKRXWDQ\DFFRPSDQ\LQJIHHOLQJWRQHEXWZLWKRQHRI LG %XW WRZDUGV WKH RXWHU ZRUOG DW DQ\ UDWH WKH HJR VHHPV WR
DNLQGZKLFKFKDUDFWHUL]HVRWKHUHTXDOO\IDUUHDFKLQJUHIOHFWLRQV NHHS LWVHOI FOHDUO\ DQG VKDUSO\ RXWOLQHG DQG GHOLPLWHG 7KHUH LV
DV ZHOO , FRXOG QRW LQ P\ RZQ SHUVRQ FRQYLQFH P\VHOI RI WKH RQO\ RQH VWDWH RI PLQG LQ ZKLFK LW IDLOV WR GR WKLVDQ XQXVXDO
SULPDU\ QDWXUH RI VXFK D IHHOLQJ %XW , FDQQRW RQ WKDW DFFRXQW VWDWHLWLVWUXHEXWQRWRQHWKDWFDQEHMXGJHGDVSDWKRORJLFDO$W
GHQ\WKDWLWLQIDFWRFFXUVLQRWKHUSHRSOH2QHFDQRQO\ZRQGHU LWV KHLJKW WKH VWDWH RI EHLQJ LQ ORYH WKUHDWHQV WR REOLWHUDWH WKH
ERXQGDULHVEHWZHHQHJRDQGREMHFW$JDLQVWDOOWKHHYLGHQFHRI REMHFW ILUVW SUHVHQWV LWVHOI WR WKH HJR DV VRPHWKLQJ H[LVWLQJ
KLVVHQVHVWKHPDQLQORYHGHFODUHVWKDWKHDQGKLVEHORYHGDUH RXWVLGH ZKLFK LV RQO\ LQGXFHG WR DSSHDU E\ D SDUWLFXODU DFW $
RQHDQGLVSUHSDUHGWREHKDYHDVLILWZHUHDIDFW$WKLQJWKDW IXUWKHUVWLPXOXVWRWKHJURZWKDQGIRUPDWLRQRIWKHHJRVRWKDW
FDQEHWHPSRUDULO\HIIDFHGE\DSK\VLRORJLFDOIXQFWLRQPXVWDOVR LW EHFRPHV VRPHWKLQJ PRUH WKDQ D EXQGOH RI VHQVDWLRQV L H
RI FRXUVH EH OLDEOH WR GLVWXUEDQFH E\ PRUELG SURFHVVHV )URP UHFRJQL]HV DQ RXWVLGH WKH H[WHUQDO ZRUOG LV DIIRUGHG E\ WKH
SDWKRORJ\ ZH KDYH FRPH WR NQRZ D ODUJH QXPEHU RI VWDWHV LQ IUHTXHQW XQDYRLGDEOH DQG PDQLIROG SDLQV DQG XQSOHDVDQW
ZKLFK WKH ERXQGDU\ OLQH EHWZHHQ HJR DQG RXWHU ZRUOG EHFRPH VHQVDWLRQV ZKLFK WKH SOHDVXUHSULQFLSOH VWLOO LQ XQUHVWULFWHG
XQFHUWDLQ RU LQ ZKLFK WKH\ DUH DFWXDOO\ LQFRUUHFWO\ GRPLQDWLRQ ELGV LW DEROLVK RU DYRLG 7KH WHQGHQF\ DULVHV WR
SHUFHLYHGFDVHV LQ ZKLFK SDUWV RI D PDQV RZQ ERG\ HYHQ GLVVRFLDWH IURP WKH HJR HYHU\WKLQJ ZKLFK FDQ JLYH ULVH WR SDLQ
FRPSRQHQW SDUWV RI KLV RZQ PLQG SHUFHSWLRQV WKRXJKWV WR FDVW LW RXW DQG FUHDWH D SXUH SOHDVXUHHJR LQ FRQWUDVW WR D
IHHOLQJVDSSHDUWRKLPDOLHQDQGQRWEHORQJLQJWRKLPVHOIRWKHU WKUHDWHQLQJ RXWVLGH QRWVHOI 7KH OLPLWV RI WKLV SULPLWLYH
FDVHV LQ ZKLFK D PDQ DVFULEHV WR WKH H[WHUQDO ZRUOG WKLQJV WKDW SOHDVXUHHJR FDQQRW HVFDSH UHDGMXVWPHQW WKURXJK H[SHULHQFH
FOHDUO\RULJLQDWHLQKLPVHOIDQGWKDWRXJKWWREHDFNQRZOHGJHG 0XFK WKDW WKH LQGLYLGXDO ZDQWV WR UHWDLQ EHFDXVH LW LV SOHDVXUH
E\ KLP 6R WKH HJRV FRJQL]DQFH RI LWVHOI LV VXEMHFW WR JLYLQJ LV QHYHUWKHOHVV SDUW QRW RI WKH HJR EXW RI DQ REMHFW DQG
GLVWXUEDQFHDQGWKHERXQGDULHVEHWZHHQLWDQGWKHRXWHUZRUOG PXFKWKDWKHZLVKHVWRHMHFWEHFDXVHLWWRUPHQWVKLP\HWSURYHV
DUHQRWLPPRYDEOH WREHLQVHSDUDEOHIURPWKHHJRDULVLQJIURPDQLQQHUVRXUFH+H
OHDUQVDPHWKRGE\ZKLFKWKURXJKGHOLEHUDWHXVHRIWKHVHQVRU\
RUJDQV DQG VXLWDEOH PXVFXODU PRYHPHQWV KH FDQ GLVWLQJXLVK
)XUWKHU UHIOHFWLRQ VKRZV WKDW WKH DGXOWV VHQVH RI KLV RZQ HJR EHWZHHQ LQWHUQDO DQG H[WHUQDO ZKDW LV SDUW RI WKH HJR DQG ZKDW
FDQQRW KDYH EHHQ WKH VDPH IURP WKH EHJLQQLQJ ,W PXVW KDYH RULJLQDWHV LQ WKH RXWHU ZRUOGDQG WKXV KH PDNHV WKH ILUVW VWHS
XQGHUJRQH D GHYHORSPHQW ZKLFK QDWXUDOO\ FDQQRW EH WRZDUGV WKH LQWURGXFWLRQ RI WKH UHDOLW\SULQFLSOH ZKLFK LV WR
GHPRQVWUDWHG EXW ZKLFK DGPLWV RI UHFRQVWUXFWLRQ ZLWK D IDLU FRQWUROKLVGHYHORSPHQWIXUWKHU7KLVFDSDFLW\IRUGLVWLQJXLVKLQJ
GHJUHH RI SUREDELOLW\  :KHQ WKH LQIDQW DW WKH EUHDVW UHFHLYHV ZKLFK KH OHDUQV RI FRXUVH VHUYHV D SUDFWLFDO SXUSRVH WKDW RI
VWLPXOLKHFDQQRWDV\HWGLVWLQJXLVKZKHWKHUWKH\FRPHIURPKLV HQDEOLQJKLPWRGHIHQGKLPVHOIDJDLQVWSDLQIXOVHQVDWLRQVIHOWE\
HJRRUIURPWKHRXWHUZRUOG+HOHDUQVLWJUDGXDOO\DVWKHUHVXOW KLPRUWKUHDWHQLQJKLP$JDLQVWFHUWDLQSDLQIXOH[FLWDWLRQVIURP
RIYDULRXVH[LJHQFLHV,WPXVWPDNHWKHVWURQJHVWLPSUHVVLRQRQ ZLWKLQ WKH HJR KDV RQO\ WKH VDPH PHDQV RI GHIHQFH DV WKDW
KLP WKDW PDQ\ VRXUFHV RI H[FLWDWLRQ ZKLFK ODWHU RQ KH ZLOO HPSOR\HG DJDLQVW SDLQ FRPLQJ IURP ZLWKRXW DQG WKLV LV WKH
UHFRJQL]HDVKLVRZQERGLO\RUJDQVFDQSURYLGHKLPDWDQ\WLPH VWDUWLQJSRLQWRILPSRUWDQWPRUELGGLVWXUEDQFHV
ZLWK VHQVDWLRQV ZKHUHDV RWKHUV EHFRPH WHPSRUDULO\ RXW RI KLV
UHDFKDPRQJVW WKHVH ZKDW KH ZDQWV PRVW RI DOO KLV PRWKHUV  &I WKH FRQVLGHUDEOH YROXPH RI ZRUN RQ WKLV WRSLF GDWLQJ
EUHDVWDQGUHDSSHDURQO\DVDUHVXOWRIKLVFULHVIRUKHOS7KXVDQ IURPWKDWRI)HUHQF]L 6WDJHVLQWKH'HYHORSPHQWRIWKH
6HQVH RI 5HDOLW\   XS WR )HGHUQV FRQWULEXWLRQV  RQO\WKURXJKUHFRQVWUXFWLRQ,QWKHUHDOPRIPLQGRQWKHRWKHU
DQGODWHU KDQGWKHSULPLWLYHW\SHLVVRFRPPRQO\SUHVHUYHGDORQJVLGHWKH
WUDQVIRUPDWLRQV ZKLFK KDYH GHYHORSHG RXW RI LW WKDW LW LV
,QWKLVZD\WKHHJRGHWDFKHVLWVHOIIURPWKHH[WHUQDOZRUOG,WLV VXSHUIOXRXVWRJLYHLQVWDQFHVLQSURRIRILW:KHQWKLVKDSSHQV
PRUHFRUUHFWWRVD\2ULJLQDOO\WKHHJRLQFOXGHVHYHU\WKLQJODWHU LW LV XVXDOO\ WKH UHVXOW RI D ELIXUFDWLRQ LQ GHYHORSPHQW 2QH
LWGHWDFKHVIURPLWVHOIWKHH[WHUQDOZRUOG7KHHJRIHHOLQJZHDUH TXDQWLWDWLYH SDUW RI DQ DWWLWXGH RU DQ LPSXOVH KDV VXUYLYHG
DZDUH RI QRZ LV WKXV RQO\ D VKUXQNHQ YHVWLJH RI D IDU PRUH XQFKDQJHGZKLOHDQRWKHUKDVXQGHUJRQHIXUWKHUGHYHORSPHQW
H[WHQVLYH IHHOLQJD IHHOLQJ ZKLFK HPEUDFHG WKH XQLYHUVH DQG
H[SUHVVHGDQLQVHSDUDEOHFRQQHFWLRQRIWKHHJRZLWKWKHH[WHUQDO
ZRUOG,IZHPD\VXSSRVHWKDWWKLVSULPDU\HJRIHHOLQJKDVEHHQ 7KLV EULQJV XV YHU\ FORVH WR WKH PRUH JHQHUDO SUREOHP RI
SUHVHUYHG LQ WKH PLQGV RI PDQ\ SHRSOHWR D JUHDWHU RU OHVVHU FRQVHUYDWLRQ LQ WKH PLQG ZKLFK KDV VR IDU KDUGO\ EHHQ
H[WHQW LW ZRXOG FRH[LVW OLNH D VRUW RI FRXQWHUSDUW ZLWK WKH GLVFXVVHG EXW LV VR LQWHUHVWLQJ DQG LPSRUWDQW WKDW ZH PD\ WDNH
QDUURZHUDQGPRUHVKDUSO\RXWOLQHGHJRIHHOLQJRIPDWXULW\DQG WKH RSSRUWXQLW\ WR SD\ LW VRPH DWWHQWLRQ HYHQ WKRXJK LWV
WKH LGHDWLRQDO FRQWHQW EHORQJLQJ WR LW ZRXOG EH SUHFLVHO\ WKH UHOHYDQFHLVQRWLPPHGLDWH6LQFHWKHWLPHZKHQZHUHFRJQL]HG
QRWLRQ RI OLPLWOHVV H[WHQVLRQ DQG RQHQHVV ZLWK WKH XQLYHUVHWKH WKH HUURU RI VXSSRVLQJ WKDW RUGLQDU\ IRUJHWWLQJ VLJQLILHG
VDPH IHHOLQJ DV WKDW GHVFULEHG E\ P\ IULHQG DV RFHDQLF  %XW GHVWUXFWLRQ RU DQQLKLODWLRQ RI WKH PHPRU\WUDFH ZH KDYH EHHQ
KDYH ZH DQ\ ULJKW WR DVVXPH WKDW WKH RULJLQDO W\SH RI IHHOLQJ LQFOLQHG WR WKH RSSRVLWH YLHZ WKDW QRWKLQJ RQFH IRUPHG LQ WKH
VXUYLYHVDORQJVLGHWKHODWHURQHZKLFKKDVGHYHORSHGIURPLW" PLQGFRXOGHYHUSHULVKWKDWHYHU\WKLQJVXUYLYHVLQVRPHZD\RU
RWKHU DQG LV FDSDEOH XQGHU FHUWDLQ FRQGLWLRQV RI EHLQJ EURXJKW
WROLJKWDJDLQDVIRULQVWDQFHZKHQUHJUHVVLRQH[WHQGVEDFNIDU
8QGRXEWHGO\ ZH KDYH WKHUH LV QRWKLQJ XQXVXDO LQ VXFK D HQRXJK 2QH PLJKW WU\ WR SLFWXUH WR RQHVHOI ZKDW WKLV
SKHQRPHQRQZKHWKHULQWKHSV\FKRORJLFDORULQRWKHUVSKHUHV DVVXPSWLRQVLJQLILHVE\DFRPSDULVRQWDNHQIURPDQRWKHUILHOG
:KHUH DQLPDOV DUH FRQFHUQHG ZH KROG WKH YLHZ WKDW WKH PRVW /HW XV FKRRVH WKH KLVWRU\ RI WKH (WHUQDO &LW\ DV DQ H[DPSOH
KLJKO\ GHYHORSHG KDYH DULVHQ IURP WKH ORZHVW <HW ZH VWLOO ILQG +LVWRULDQV WHOO XV WKDW WKH ROGHVW 5RPH RI DOO ZDV WKH 5RPD
DOO WKH VLPSOH IRUPV DOLYH WRGD\ 7KH JUHDW VDXULDQV DUH H[WLQFW TXDGUDWD D IHQFHG VHWWOHPHQW RQ WKH 3DODWLQH 7KHQ IROORZHG
DQG KDYH PDGH ZD\ IRU WKH PDPPDOV EXW D W\SLFDO WKH SKDVH RI WKH 6HSWLPRQWLXP ZKHQ WKH FRORQLHV RQ WKH
UHSUHVHQWDWLYH RI WKHP WKH FURFRGLOH LV VWLOO OLYLQJ DPRQJ XV GLIIHUHQWKLOOVXQLWHGWRJHWKHUWKHQWKHWRZQZKLFKZDVERXQGHG
7KHDQDORJ\PD\EHWRRUHPRWHDQGLWLVDOVRZHDNHQHGE\WKH E\WKH6HUYLDQZDOODQGODWHUVWLOODIWHUDOOWKHWUDQVIRUPDWLRQVLQ
IDFW WKDW WKH VXUYLYLQJ ORZHU VSHFLHV DUH QRW DV D UXOH WKH WUXH WKHSHULRGVRIWKHUHSXEOLFDQGWKHHDUO\&DHVDUVWKHFLW\ZKLFK
DQFHVWRUV RI WKH SUHVHQWGD\ PRUH KLJKO\ GHYHORSHG W\SHV 7KH WKH(PSHURU$XUHOLDQHQFORVHGE\KLVZDOOV:HZLOOQRWIROORZ
LQWHUPHGLDWHPHPEHUVKDYHPRVWO\GLHGRXWDQGDUHNQRZQWRXV WKH FKDQJHV WKH FLW\ ZHQW WKURXJK DQ\ IXUWKHU EXW ZLOO DVN
RXUVHOYHVZKDWWUDFHVRIWKHVHHDUO\VWDJHVLQLWVKLVWRU\DYLVLWRU KXPDQGZHOOLQJSODFHEXWDPHQWDOHQWLW\ZLWKMXVWDVORQJDQG
WR5RPHPD\VWLOOILQGWRGD\LIKHJRHVHTXLSSHGZLWKWKHPRVW YDULHGDSDVWKLVWRU\WKDWLVLQZKLFKQRWKLQJRQFHFRQVWUXFWHG
FRPSOHWHKLVWRULFDODQGWRSRJUDSKLFDONQRZOHGJH KDG SHULVKHG DQG DOO WKH HDUOLHU VWDJHV RI GHYHORSPHQW KDG
VXUYLYHGDORQJVLGHWKHODWHVW7KLVZRXOGPHDQWKDWLQ5RPHWKH
SDODFHVRIWKH&DHVDUVZHUHVWLOOVWDQGLQJRQWKH3DODWLQHDQGWKH
$FFRUGLQJWR7KH&DPEULGJH$QFLHQW+LVWRU\9RO9,, 6HSWL]RQLXP RI 6HSWLPLXV 6HYHUXV ZDV VWLOO WRZHULQJ WR LWV ROG
 7KH)RXQGLQJRI5RPHE\+XJK/DVW KHLJKW WKDW WKH EHDXWLIXO VWDWXHV ZHUH VWLOO VWDQGLQJ LQ WKH
FRORQQDGH RI WKH &DVWOH RI 6W $QJHOR DV WKH\ ZHUH XS WR LWV
VLHJHE\WKH*RWKVDQGVRRQ%XWPRUHVWLOOZKHUHWKH3DOD]]R
([FHSW IRU D IHZ JDSV KH ZLOO VHH WKH ZDOO RI $XUHOLDQ DOPRVW &DIIDUHOOL VWDQGV WKHUH ZRXOG DOVR EH ZLWKRXW WKLV EHLQJ
XQFKDQJHG +H FDQ ILQG VHFWLRQV RI WKH 6HUYLDQ UDPSDUW DW UHPRYHG WKH 7HPSOH RI -XSLWHU &DSLWROLQXV QRW PHUHO\ LQ LWV
FHUWDLQSRLQWVZKHUHLWKDVEHHQH[FDYDWHGDQGEURXJKWWROLJKW ODWHVWIRUPPRUHRYHUDVWKH5RPDQVRIWKH&DHVDUVVDZLWEXW
,I KH NQRZV HQRXJKPRUH WKDQ SUHVHQWGD\ DUFKDHRORJ\KH PD\ DOVR LQ LWV HDUOLHVW VKDSH ZKHQ LW VWLOO ZRUH DQ (WUXVFDQ GHVLJQ
SHUKDSVWUDFHRXWLQWKHVWUXFWXUHRIWKHWRZQWKHZKROHFRXUVH DQGZDVDGRUQHGZLWKWHUUDFRWWDDQWLIL[DH:KHUHWKH&ROLVHXP
RIWKLVZDOODQGWKHRXWOLQHRI5RPDTXDGUDWD2IWKHEXLOGLQJV VWDQGV QRZ ZH FRXOG DW WKH VDPH WLPH DGPLUH 1HURV *ROGHQ
ZKLFK RQFH RFFXSLHG WKLV DQFLHQW JURXQGSODQ KH ZLOO ILQG +RXVH RQ WKH 3LD]]D RI WKH 3DQWKHRQ ZH VKRXOG ILQG RXW RQO\
QRWKLQJRUEXWPHDJUHIUDJPHQWVIRUWKH\H[LVWQRORQJHU:LWK WKH 3DQWKHRQ RI WRGD\ DV EHTXHDWKHG WR XV E\ +DGULDQ EXW RQ
WKH EHVW LQIRUPDWLRQ DERXW 5RPH RI WKH UHSXEOLFDQ HUD WKH WKH VDPH VLWH DOVR $JULSSDV RULJLQDO HGLILFH LQGHHG WKH VDPH
XWPRVWKHFRXOGDFKLHYHZRXOGEHWRLQGLFDWHWKHVLWHVZKHUHWKH JURXQG ZRXOG VXSSRUW WKH FKXUFK RI 6DQWD 0DULD VRSUD 0L
WHPSOHVDQGSXEOLFEXLOGLQJVRIWKDWSHULRGVWRRG7KHVHSODFHV QHUYD DQG WKH ROG WHPSOH RYHU ZKLFK LW ZDV EXLOW $QG WKH
DUH QRZ RFFXSLHG E\ UXLQV EXW WKH UXLQV DUH QRW WKRVH RI WKH REVHUYHU ZRXOG QHHG PHUHO\ WR VKLIW WKH IRFXV RI KLV H\HV
HDUO\ EXLOGLQJV WKHPVHOYHV EXW RI UHVWRUDWLRQV RI WKHP LQ ODWHU SHUKDSV RU FKDQJH KLV SRVLWLRQ LQ RUGHU WR FDOO XS D YLHZ RI
WLPHV DIWHU ILUHV DQG GHPROLWLRQV ,W LV KDUGO\ QHFHVVDU\ WR HLWKHUWKHRQHRUWKHRWKHU
PHQWLRQWKDWDOOWKHVHUHPDLQVRIDQFLHQW5RPHDUHIRXQGZRYHQ
LQWRWKHIDEULFRIDJUHDWPHWURSROLVZKLFKKDVDULVHQLQWKHODVW 7KHUHLVFOHDUO\QRREMHFWLQVSLQQLQJWKLVIDQWDV\IXUWKHULWOHDGV
IHZ FHQWXULHV VLQFH WKH 5HQDLVVDQFH 7KHUH LV DVVXUHGO\ PXFK WR WKH LQFRQFHLYDEOH RU HYHQ WR DEVXUGLWLHV ,I ZH WU\ WR
WKDW LV DQFLHQW VWLOO EXULHG LQ WKH VRLO RU XQGHU WKH PRGHUQ UHSUHVHQWKLVWRULFDOVHTXHQFHLQVSDWLDOWHUPVLWFDQRQO\EHGRQH
EXLOGLQJV RI WKH WRZQ 7KLV LV WKH ZD\ LQ ZKLFK ZH ILQG E\ MX[WDSRVLWLRQ LQ VSDFH WKH VDPH VSDFH ZLOO QRW KROG WZR
DQWLTXLWLHVVXUYLYLQJLQKLVWRULFFLWLHVOLNH5RPH FRQWHQWV 2XU DWWHPSW VHHPV OLNH DQ LGOH JDPH LW KDV RQO\ RQH
MXVWLILFDWLRQ LW VKRZV XV KRZ IDU DZD\ IURP PDVWHULQJ WKH
LGLRV\QFUDVLHVRIPHQWDOOLIHZHDUHE\WUHDWLQJWKHPLQWHUPVRI
1RZOHWXVPDNHWKHIDQWDVWLFVXSSRVLWLRQWKDW5RPHZHUHQRWD
YLVXDOUHSUHVHQWDWLRQ UHSUHVHQW D SKHQRPHQRQ RI WKLV NLQG LQ YLVXDO WHUPV 3HUKDSV
ZHDUHJRLQJWRRIDUZLWKWKLVFRQFOXVLRQ3HUKDSVZHRXJKWWR
7KHUHLVRQHREMHFWLRQWKRXJKWRZKLFKZHPXVWSD\DWWHQWLRQ EH FRQWHQW ZLWK WKH DVVHUWLRQ WKDW ZKDW LV SDVW LQ WKH PLQG FDQ
,WTXHVWLRQVRXUFKRRVLQJLQSDUWLFXODUWKHSDVWKLVWRU\RIDFLW\ VXUYLYH DQG QHHG QRW QHFHVVDULO\ SHULVK ,W LV DOZD\V SRVVLEOH
WR OLNHQ WR WKH SDVW RI WKH PLQG (YHQ IRU PHQWDO OLIH RXU WKDWHYHQLQWKHPLQGPXFKWKDWLVROGPD\EHVRIDUREOLWHUDWHG
DVVXPSWLRQWKDWHYHU\WKLQJSDVWLVSUHVHUYHGKROGVJRRGRQO\RQ RU DEVRUEHGZKHWKHU QRUPDOO\ RU E\ ZD\ RI H[FHSWLRQWKDW LW
FRQGLWLRQ WKDW WKH RUJDQ RI WKH PLQG UHPDLQV LQWDFW DQG LWV FDQQRWEHUHVWRUHGRUUHDQLPDWHGE\DQ\PHDQVRUWKDWVXUYLYDO
VWUXFWXUH KDV QRW EHHQ LQMXUHG E\ WUDXPDV RU LQIODPPDWLRQ RILWLVDOZD\VFRQQHFWHGZLWKFHUWDLQIDYRXUDEOHFRQGLWLRQV,WLV
'HVWUXFWLYHLQIOXHQFHVFRPSDUDEOHWRWKHVHPRUELGDJHQFLHVDUH SRVVLEOHEXWZHNQRZQRWKLQJDERXWLW:HFDQRQO\EHVXUHWKDW
QHYHUODFNLQJLQWKHKLVWRU\RIDQ\WRZQHYHQLILWKDVKDGDOHVV LW LV PRUH WKH UXOH WKDQ WKH H[FHSWLRQ IRU WKH SDVW WR VXUYLYH LQ
FKHTXHUHG SDVW WKDQ 5RPH HYHQ LI OLNH /RQGRQ LW KDV KDUGO\ WKHPLQG
HYHUEHHQSLOODJHGE\DQHQHP\'HPROLWLRQVDQGWKHHUHFWLRQRI
QHZEXLOGLQJVLQWKHSODFHRIROGRFFXULQFLWLHVZKLFKKDYHKDG 7KXV ZH DUH HQWLUHO\ ZLOOLQJ WR DFNQRZOHGJH WKDW WKH RFHDQLF
WKHPRVWSHDFHIXOH[LVWHQFHWKHUHIRUHDWRZQLVIURPWKHRXWVHW IHHOLQJH[LVWVLQPDQ\SHRSOHDQGZHDUHGLVSRVHGWRUHODWHLWWR
XQVXLWHG IRU WKH FRPSDULVRQ , KDYH PDGH RI LW ZLWK D PHQWDO DQ HDUO\ VWDJH LQ HJRIHHOLQJ WKH IXUWKHU TXHVWLRQ WKHQ DULVHV
RUJDQLVP ZKDW FODLP KDV WKLV IHHOLQJ WR EH UHJDUGHG DV WKH VRXUFH RI WKH
QHHGIRUUHOLJLRQ7RPHWKLVFODLPGRHVQRWVHHPYHU\IRUFLEOH
:H DGPLW WKLV REMHFWLRQ ZH ZLOO DEDQGRQ RXU VHDUFK IRU D 6XUHO\DIHHOLQJFDQRQO\EHDVRXUFHRIHQHUJ\ZKHQLWLVLWVHOI
VWULNLQJ HIIHFW RI FRQWUDVW DQG WXUQ WR ZKDW LV DIWHU DOO D FORVHU WKH H[SUHVVLRQ RI D VWURQJ QHHG 7KH GHULYDWLRQ RI D QHHG IRU
REMHFW RI FRPSDULVRQ WKH ERG\ RI DQ DQLPDO RU KXPDQ EHLQJ UHOLJLRQIURPWKHFKLOGVIHHOLQJRIKHOSOHVVQHVVDQGWKHORQJLQJLW
%XW KHUH WRR ZH ILQG WKH VDPH WKLQJ 7KH HDUO\ VWDJHV RI HYRNHV IRU D IDWKHU VHHPV WR PH LQFRQWURYHUWLEOH HVSHFLDOO\
GHYHORSPHQW DUH LQ QR VHQVH VWLOO H[WDQW WKH\ KDYH EHHQ VLQFH WKLV IHHOLQJ LV QRW VLPSO\ FDUULHG RQ IURP FKLOGKRRG GD\V
DEVRUEHG LQWR WKH ODWHU IHDWXUHV IRU ZKLFK WKH\ VXSSOLHG WKH EXW LV NHSW DOLYH SHUSHWXDOO\ E\ WKH IHDU RI ZKDW WKH VXSHULRU
PDWHULDO 7KH HPEU\R FDQQRW EH GHPRQVWUDWHG LQ WKH DGXOW WKH SRZHU RI IDWH ZLOO EULQJ , FRXOG QRW SRLQW WR DQ\ QHHG LQ
WK\PXV JODQG RI FKLOGKRRG LV UHSODFHG DIWHU SXEHUW\ E\ FKLOGKRRG VR VWURQJ DV WKDW IRU D IDWKHUV SURWHFWLRQ 7KXV WKH
FRQQHFWLYHWLVVXHEXWQRORQJHUH[LVWVLWVHOILQWKHPDUURZERQH SDUW SOD\HG E\ WKH RFHDQLF IHHOLQJ ZKLFK , VXSSRVH VHHNV WR
RIDJURZQPDQ,FDQLWLVWUXHWUDFHWKHRXWOLQHRIWKHFKLOGLVK UHLQVWDWHOLPLWOHVVQDUFLVVLVPFDQQRWSRVVLEO\WDNHWKHILUVWSODFH
ERQHVWUXFWXUH EXW WKLV ODWWHU QR ORQJHU VXUYLYHV LQ LWVHOILW 7KHGHULYDWLRQRIWKHUHOLJLRXVDWWLWXGHFDQEHIROORZHGEDFNLQ
OHQJWKHQHGDQGWKLFNHQHGXQWLOLWUHDFKHGLWVILQDOIRUP7KHIDFW FOHDU RXWOLQH DV IDU DV WKH FKLOGV IHHOLQJ RI KHOSOHVVQHVV 7KHUH
LVWKDWDVXUYLYDORIDOOWKHHDUO\VWDJHVDORQJVLGHWKHILQDOIRUPLV PD\ EH VRPHWKLQJ HOVH EHKLQG WKLV EXW IRU WKH SUHVHQW LW LV
RQO\ SRVVLEOH LQ WKH PLQG DQG WKDW LW LV LPSRVVLEOH IRU XV WR ZUDSSHGLQREVFXULW\
, FDQ LPDJLQH WKDW WKH RFHDQLF IHHOLQJ FRXOG EHFRPH FRQQHFWHG
ZLWKUHOLJLRQODWHURQ7KDWIHHOLQJRIRQHQHVVZLWKWKHXQLYHUVH
ZKLFKLVLWVLGHDWLRQDOFRQWHQWVRXQGVYHU\OLNHDILUVWDWWHPSWDW ,,
WKH FRQVRODWLRQV RI UHOLJLRQ OLNH DQRWKHU ZD\ WDNHQ E\ WKH HJR
RI GHQ\LQJ WKH GDQJHUV LW VHHV WKUHDWHQLQJ LW LQ WKH H[WHUQDO
ZRUOG,PXVWDJDLQFRQIHVVWKDW,ILQGLWYHU\GLIILFXOWWRZRUN ,1P\)XWXUHRIDQ,OOXVLRQ,ZDVFRQFHUQHGPXFKOHVVZLWK
ZLWKWKHVHLQWDQJLEOHTXDQWLWLHV$QRWKHUIULHQGRIPLQHZKRVH WKH GHHSHVW VRXUFHV RI UHOLJLRXV IHHOLQJ WKDQ ZLWK ZKDW WKH
LQVDWLDEOH VFLHQWLILF FXULRVLW\ KDV LPSHOOHG KLP WR WKH PRVW RXW RUGLQDU\ PDQ XQGHUVWDQGV E\ KLV UHOLJLRQ WKDW V\VWHP RI
RIWKHZD\ UHVHDUFKHV DQG WR WKH DFTXLVLWLRQ RI HQF\FORSDHGLF GRFWULQHVDQGSOHGJHVWKDWRQWKHRQHKDQGH[SODLQVWKHULGGOHRI
NQRZOHGJH KDV DVVXUHG PH WKDW WKH <RJL E\ WKHLU SUDFWLFHV RI WKLV ZRUOG WR KLP ZLWK DQ HQYLDEOH FRPSOHWHQHVV DQG RQ WKH
ZLWKGUDZDO IURP WKH ZRUOG FRQFHQWUDWLQJ DWWHQWLRQ RQ ERGLO\ RWKHU DVVXUHV KLP WKDW D VROLFLWRXV 3URYLGHQFH LV ZDWFKLQJ RYHU
IXQFWLRQV SHFXOLDU PHWKRGV RI EUHDWKLQJ DFWXDOO\ DUH DEOH WR KLP DQG ZLOO PDNH XS WR KLP LQ D IXWXUH H[LVWHQFH IRU DQ\
SURGXFH QHZ VHQVDWLRQV DQG GLIIXVHG IHHOLQJV LQ WKHPVHOYHV VKRUWFRPLQJVLQWKLVOLIH7KHRUGLQDU\PDQFDQQRWLPDJLQHWKLV
ZKLFK KH UHJDUGV DV UHJUHVVLRQV WR SULPRUGLDO GHHSO\ EXULHG 3URYLGHQFHLQDQ\RWKHUIRUPKXWWKDWRIDJUHDWO\H[DOWHGIDWKHU
PHQWDOVWDWHV+HVHHVLQWKHPDSK\VLRORJLFDOIRXQGDWLRQVRWR IRU RQO\ VXFK D RQH FRXOG XQGHUVWDQG WKH QHHGV RI WKH VRQV RI
VSHDN RI PXFK RI WKH ZLVGRP RI P\VWLFLVP 7KHUH ZRXOG EH PHQRUEHVRIWHQHGE\WKHLUSUD\HUVDQGSODFDWHGE\WKHVLJQVRI
FRQQHFWLRQVWREHPDGHKHUHZLWKPDQ\ WKHLU UHPRUVH 7KH ZKROH WKLQJ LV VR SDWHQWO\ LQIDQWLOH VR
LQFRQJUXRXVZLWKUHDOLW\WKDWWRRQHZKRVHDWWLWXGHWRKXPDQLW\
LVIULHQGO\LWLVSDLQIXOWRWKLQNWKDWWKHJUHDWPDMRULW\RIPRUWDOV
ZLOOQHYHUEHDEOHWRULVHDERYHWKLVYLHZRIOLIH,WLVHYHQPRUH
REVFXUHPRGLILFDWLRQVRIPHQWDOOLIHVXFKDVWUDQFHDQGHFVWDV\ KXPLOLDWLQJWRGLVFRYHUZKDWDODUJHQXPEHURIWKRVHDOLYHWRGD\
%XW,DPPRYHGWRH[FODLPLQWKHZRUGVRI6FKLOOHUVGLYHU ZKRPXVWVHHWKDWWKLVUHOLJLRQLVQRWWHQDEOH\HWWU\WRGHIHQGLW
LQFK E\ LQFK DV LI ZLWK D VHULHV RI SLWLDEOH UHDUJXDUG DFWLRQV
2QH ZRXOG OLNH WR FRXQW RQHVHOI DPRQJ WKH EHOLHYHUV VR DV WR
:KREUHDWKHVRYHUKHDGLQWKHURVHWLQWHGOLJKWPD\EHJODG DGPRQLVK WKH SKLORVRSKHUV ZKR WU\ WR SUHVHUYH WKH *RG RI
UHOLJLRQE\VXEVWLWXWLQJIRUKLPDQLPSHUVRQDOVKDGRZ\DEVWUDFW
SULQFLSOHDQGVD\7KRXVKDOOQRWWDNHWKHQDPHRIWKH/RUGWK\
*RGLQYDLQ6RPHRIWKHJUHDWPHQRIWKHSDVWGLGWKHVDPHEXW
WKDWLVQRMXVWLILFDWLRQIRUXVZHNQRZZK\WKH\KDGWRGRVR
 /RQGRQ+RJDUWK3UHVV  SHRSOHVKRXOGFXOWLYDWHWKHLUJDUGHQVVFLHQWLILFZRUNLVDQRWKHU
GHIOHFWLRQRIWKHVDPHNLQG7KHVXEVWLWXWHJUDWLILFDWLRQVVXFKDV
DUW RIIHUV DUH LOOXVLRQV LQ FRQWUDVW WR UHDOLW\ EXW QRQH WKH OHVV
:H ZLOO QRZ JR EDFN WR WKH RUGLQDU\ PDQ DQG KLV UHOLJLRQWKH VDWLVI\LQJWRWKHPLQGRQWKDWDFFRXQWWKDQNVWRWKHSODFHZKLFK
RQO\ UHOLJLRQ WKDW RXJKW WR EHDU WKH QDPH 7KH ZHOONQRZQ SKDQWDV\KDVUHVHUYHGIRUKHUVHOILQPHQWDOOLIH7KHLQWR[LFDWLQJ
ZRUGV RI RQH RI RXU JUHDW DQG ZLVH SRHWV FRPH WR PLQG LQ VXEVWDQFHVDIIHFWRXUERG\DOWHULWVFKHPLFDOSURFHVVHV,WLVQRW
ZKLFKKHH[SUHVVHVKLVYLHZRIWKHUHODWLRQRIUHOLJLRQWRDUWDQG VRVLPSOHWRILQGWKHSODFHZKHUHUHOLJLRQEHORQJVLQWKLVVHULHV
VFLHQFH7KH\UXQ :HPXVWORRNIXUWKHUDILHOG

*RHWKH=DKPHQ;HQLHQ,; *HGLFKWHDXVGHP1DFKODVV 
+HZKRKDV6FLHQFHDQGKDV$UW
5HOLJLRQWRRKDVKH :LOKHOP%XVFKLQ'LHIURPPH+HOHQHVD\VWKHVDPHWKLQJ
:KRKDVQRW6FLHQFHKDVQRW$UW
RQDORZHUOHYHO7KHPDQZKRKDVFDUHVKDVEUDQG\
/HWKLPUHOLJLRXVEH WRR

2Q WKH RQH KDQG WKHVH ZRUGV FRQWUDVW UHOLJLRQ ZLWK WKH WZR 7KH TXHVWLRQ :KDW LV WKH SXUSRVH RI KXPDQ OLIH" KDV EHHQ
KLJKHVWDFKLHYHPHQWVRIPDQDQGRQWKHRWKHUWKH\GHFODUHWKDW DVNHGWLPHVZLWKRXWQXPEHULWKDVQHYHUUHFHLYHGDVDWLVIDFWRU\
LQUHVSHFWRIWKHLUYDOXHLQOLIHWKH\FDQUHSUHVHQWRUUHSODFHHDFK DQVZHU SHUKDSV LW GRHV QRW DGPLW RI VXFK DQ DQVZHU 0DQ\ D
RWKHU,IZHZLVKWRGHSULYHHYHQWKHRUGLQDU\PDQWRRRIKLV TXHVWLRQHU KDV DGGHG WKDW LI LW VKRXOG DSSHDU WKDW OLIH KDV QR
UHOLJLRQ ZH VKDOO FOHDUO\ QRW KDYH WKH DXWKRULW\ RI WKH SRHW RQ SXUSRVH WKHQ LW ZRXOG ORVH DOO YDOXH IRU KLP %XW WKHVH WKUHDWV
RXU VLGH :H ZLOO VHHN WR JHW LQ WRXFK ZLWK WKH PHDQLQJ RI KLV DOWHUQRWKLQJ,WORRNVRQWKHFRQWUDU\DVWKRXJKRQHKDGDULJKW
XWWHUDQFHE\DVSHFLDOZD\/LIHDVZHILQGLWLVWRRKDUGIRUXVLW WRGLVPLVVWKLVTXHVWLRQIRULWVHHPVWRSUHVXSSRVHWKDWEHOLHILQ
HQWDLOV WRR PXFK SDLQ WRR PDQ\ GLVDSSRLQWPHQWV LPSRVVLEOH WKHVXSHULRULW\RIWKHKXPDQUDFHZLWKZKLFKZHDUHDOUHDG\VR
WDVNV :H FDQQRW GR ZLWKRXW SDOOLDWLYH UHPHGLHV :H FDQQRW IDPLOLDU LQ LWV RWKHU H[SUHVVLRQV 1RERG\ DVNV ZKDW LV WKH
GLVSHQVHZLWKDX[LOLDU\FRQVWUXFWLRQVDV7KHRGRU)RQWDQHVDLG SXUSRVH RI WKH OLYHV RI DQLPDOV XQOHVV SHUDGYHQWXUH WKH\ DUH
7KHUHDUHSHUKDSVWKUHHRIWKHVHPHDQVSRZHUIXOGLYHUVLRQVRI GHVLJQHGWREHRIVHUYLFHWRPDQ%XWWKLVWRRZLOOQRWKROGIRU
LQWHUHVWZKLFKOHDGXVWRFDUHOLWWOHDERXWRXUPLVHU\VXEVWLWXWLYH ZLWKPDQ\DQLPDOVPDQFDQGRQRWKLQJH[FHSWGHVFULEHFODVVLI\
JUDWLILFDWLRQZKLFKOHVVHQLWDQGLQWR[LFDWLQJVXEVWDQFHVZKLFK DQG VWXG\ WKHP DQG FRXQWOHVV VSHFLHV KDYH GHFOLQHG WR EH SXW
PDNH XV LQVHQVLWLYH WR LW 6RPHWKLQJ RI WKLV NLQG LV HYHQ WR WKLV XVH E\ OLYLQJ DQG G\LQJ DQG EHFRPLQJ H[WLQFW
LQGLVSHQVDEOH  9ROWDLUH LV DLPLQJ DW D GLYHUVLRQ RI LQWHUHVW EHIRUH PHQ KDG VHW H\HV XSRQ WKHP 6R DJDLQ RQO\ UHOLJLRQ LV
ZKHQ KH EULQJV KLV &DQGLGH WR D FORVH ZLWK WKH DGYLFH WKDW
DEOH WR DQVZHU WKH TXHVWLRQ RI WKH SXUSRVH RI OLIH 2QH FDQ UHVXOWV LQ D IHHOLQJ RQO\ RI PLOG FRPIRUW ZH DUH VR FRQVWLWXWHG
KDUGO\JRZURQJLQFRQFOXGLQJWKDWWKHLGHDRIDSXUSRVHLQOLIH WKDW ZH FDQ RQO\ LQWHQVHO\ HQMR\ FRQWUDVWV PXFK OHVV LQWHQVHO\
VWDQGVDQGIDOOVZLWKWKHUHOLJLRXVV\VWHP VWDWHV LQ WKHPVHOYHV  2XU SRVVLELOLWLHV RI KDSSLQHVV DUH WKXV
OLPLWHG IURP WKH VWDUW E\ RXU YHU\ FRQVWLWXWLRQ ,W LV PXFK OHVV
GLIILFXOW WR EH XQKDSS\ 6XIIHULQJ FRPHV IURP WKUHH TXDUWHUV
:HZLOOWXUQWKHUHIRUHWRWKHOHVVDPELWLRXVSUREOHPZKDWWKH IURPRXURZQERG\ZKLFKLVGHVWLQHGWRGHFD\DQGGLVVROXWLRQ
EHKDYLRXURIPHQWKHPVHOYHVUHYHDOVDVWKHSXUSRVHDQGREMHFW DQG FDQQRW HYHQ GLVSHQVH ZLWK DQ[LHW\ DQG SDLQ DV GDQJHU
RIWKHLUOLYHVZKDWWKH\GHPDQGRIOLIHDQGZLVKWRDWWDLQLQLW VLJQDOVIURPWKHRXWHUZRUOGZKLFKFDQUDJHDJDLQVWXVZLWKWKH
7KHDQVZHUWRWKLVFDQKDUGO\EHLQGRXEWWKH\VHHNKDSSLQHVV PRVW SRZHUIXO DQG SLWLOHVV IRUFHV RI GHVWUXFWLRQ DQG ILQDOO\
WKH\ ZDQW WR EHFRPH KDSS\ DQG WR UHPDLQ VR 7KHUH DUH WZR IURPRXUUHODWLRQVZLWKRWKHUPHQ7KHXQKDSSLQHVVZKLFKKDV
VLGHVWRWKLVVWULYLQJDSRVLWLYHDQGDQHJDWLYHLWDLPVRQWKHRQH WKLVODVWRULJLQZHILQGSHUKDSVPRUHSDLQIXOWKDQDQ\RWKHUZH
KDQG DW HOLPLQDWLQJ SDLQ DQG GLVFRPIRUW RQ WKH RWKHU DW WKH WHQGWRUHJDUGLWPRUHRUOHVVDVDJUDWXLWRXVDGGLWLRQDOWKRXJKLW
H[SHULHQFHRILQWHQVHSOHDVXUHV,QLWVQDUURZHUVHQVHWKHZRUG FDQQRW EH DQ\ OHVV DQ LQHYLWDEOH IDWH WKDQ WKH VXIIHULQJ WKDW
KDSSLQHVVUHODWHVRQO\WRWKHODVW7KXVKXPDQDFWLYLWLHVEUDQFK SURFHHGVIURPRWKHUVRXUFHV
RIILQWZRGLUHFWLRQVFRUUHVSRQGLQJWRWKLVGRXEOHJRDODFFRUGLQJ
WR ZKLFK RI WKH WZR WKH\ DLP DW UHDOL]LQJ HLWKHU SUHGRPLQDQWO\ *RHWKHHYHQZDUQVXVWKDWQRWKLQJLVVRKDUGWREHDUDVD
RUHYHQH[FOXVLYHO\ WUDLQ RI KDSS\ GD\V  7KLV PD\ EH DQ H[DJJHUDWLRQ DOO WKH
VDPH
$VZHVHHLWLVVLPSO\WKHSOHDVXUHSULQFLSOHZKLFKGUDZVXSWKH
SURJUDPPH RI OLIHV SXUSRVH 7KLV SULQFLSOH GRPLQDWHV WKH
RSHUDWLRQRIWKHPHQWDODSSDUDWXVIURPWKHYHU\EHJLQQLQJWKHUH ,W LV QR ZRQGHU LI XQGHU WKH SUHVVXUH RI WKHVH SRVVLELOLWLHV RI
FDQEHQRGRXEWDERXWLWVHIILFLHQF\DQG\HWLWVSURJUDPPHLVLQ VXIIHULQJ KXPDQLW\ LV ZRQW WR UHGXFH LWV GHPDQGV IRU
FRQIOLFWZLWKWKHZKROHZRUOGZLWKWKHPDFURFRVPDVPXFKDV KDSSLQHVVMXVWDVHYHQWKHSOHDVXUHSULQFLSOHLWVHOIFKDQJHVLQWR
ZLWKWKHPLFURFRVP,WVLPSO\FDQQRWEHSXWLQWRH[HFXWLRQWKH WKHPRUHDFFRPPRGDWLQJUHDOLW\SULQFLSOHXQGHUWKHLQIOXHQFHRI
ZKROHFRQVWLWXWLRQRIWKLQJVUXQVFRXQWHUWRLWRQHPLJKWVD\WKH H[WHUQDO HQYLURQPHQW LI D PDQ WKLQNV KLPVHOI KDSS\ LI KH KDV
LQWHQWLRQ WKDW PDQ VKRXOG EH KDSS\ LV QRW LQFOXGHG LQ WKH PHUHO\ HVFDSHG XQKDSSLQHVV RU ZHDWKHUHG WURXEOH LI LQ JHQHUDO
VFKHPH RI &UHDWLRQ :KDW LV FDOOHG KDSSLQHVV LQ LWV QDUURZHVW WKH WDVN RI DYRLGLQJ SDLQ IRUFHV WKDW RI REWDLQLQJ SOHDVXUH LQWR
VHQVH FRPHV IURP WKH VDWLVIDFWLRQPRVW RIWHQ LQVWDQWDQHRXVRI WKH EDFNJURXQG 5HIOHFWLRQ VKRZV WKDW WKHUH DUH YHU\ GLIIHUHQW
SHQWXS QHHGV ZKLFK KDYH UHDFKHG JUHDW LQWHQVLW\ DQG E\ LWV ZD\VRIDWWHPSWLQJWRSHUIRUPWKLVWDVNDQGDOOWKHVHZD\VKDYH
YHU\ QDWXUH FDQ RQO\ EH D WUDQVLWRU\ H[SHULHQFH :KHQ DQ\ EHHQUHFRPPHQGHGE\WKHYDULRXVVFKRROVRIZLVGRPLQWKHDUW
FRQGLWLRQ GHVLUHG E\ WKH SOHDVXUHSULQFLSOH LV SURWUDFWHG LW RI OLIH DQG SXW LQWR SUDFWLFH E\ PHQ 8QEULGOHG JUDWLILFDWLRQ RI
DOO GHVLUHV IRUFHV LWVHOI LQWR WKH IRUHJURXQG DV WKH PRVW DOOXULQJ SOHDVXUDEOHVHQVDWLRQVEXWDOVRVRFKDQJHWKHFRQGLWLRQVRIRXU
JXLGLQJ SULQFLSOH LQ OLIH EXW LW HQWDLOV SUHIHUULQJ HQMR\PHQW WR SHUFHSWLYLW\ WKDW ZH EHFRPH LQVHQVLEOH RI GLVDJUHHDEOH
FDXWLRQ DQG SHQDOL]HV LWVHOI DIWHU VKRUW LQGXOJHQFH 7KH RWKHU VHQVDWLRQV 7KH WZR HIIHFWV QRW RQO\ WDNH SODFH VLPXOWDQHRXVO\
PHWKRGV LQ ZKLFK DYRLGDQFH RI SDLQ LV WKH PDLQ PRWLYH DUH WKH\ VHHP WR EH FORVHO\ ERXQG XS ZLWK HDFK RWKHU %XW WKHUH
GLIIHUHQWLDWHG DFFRUGLQJ WR WKH VRXUFH RI WKH VXIIHULQJ DJDLQVW PXVW EH VXEVWDQFHV LQ WKH FKHPLFDO FRPSRVLWLRQ RI RXU ERGLHV
ZKLFK WKH\ DUH PDLQO\ GLUHFWHG 6RPH RI WKHVH PHDVXUHV DUH ZKLFK FDQ GR WKH VDPH IRU ZH NQRZ RI DW OHDVW RQH PRUELG
H[WUHPHDQGVRPHPRGHUDWHVRPHDUHRQHVLGHGDQGVRPHGHDO VWDWH WKDW RI PDQLD LQ ZKLFK D FRQGLWLRQ VLPLODU WR WKLV
ZLWKVHYHUDODVSHFWVRIWKHPDWWHUDWRQFH9ROXQWDU\ORQHOLQHVV LQWR[LFDWLRQ DULVHV ZLWKRXW DQ\ GUXJ EHLQJ DEVRUEHG %HVLGHV
LVRODWLRQ IURP RWKHUV LV WKH UHDGLHVW VDIHJXDUG DJDLQVW WKH WKLV RXU QRUPDO PHQWDO OLIH VKRZV YDULDWLRQV DFFRUGLQJ WR
XQKDSSLQHVV WKDW PD\ DULVH RXW RI KXPDQ UHODWLRQV :H NQRZ ZKLFKSOHDVXUHLVH[SHULHQFHGZLWKPRUHRUOHVVHDVHDQGDORQJ
ZKDW WKLV PHDQV WKH KDSSLQHVV IRXQG DORQJ WKLV SDWK LV WKDW RI ZLWKWKLVJRHVDGLPLQLVKHGRULQFUHDVHGVHQVLWLYLW\WRSDLQ,WLV
SHDFH$JDLQVWWKHGUHDGHGRXWHUZRUOGRQHFDQGHIHQGRQHVHOI JUHDWO\WREHUHJUHWWHGWKDWWKLVWR[LFDVSHFWRIPHQWDOSURFHVVHV
RQO\E\WXUQLQJDZD\LQVRPHRWKHUGLUHFWLRQLIWKHGLIILFXOW\LV KDV VR IDU HOXGHG VFLHQWLILF UHVHDUFK 7KH VHUYLFHV UHQGHUHG E\
WR EH VROYHG VLQJOHKDQGHG 7KHUH LV LQGHHG DQRWKHU DQG EHWWHU LQWR[LFDWLQJ VXEVWDQFHV LQ WKH VWUXJJOH IRU KDSSLQHVV DQG LQ
ZD\ WKDW RI FRPELQLQJ ZLWK WKH UHVW RI WKH KXPDQ FRPPXQLW\ ZDUGLQJ RII PLVHU\ UDQN VR KLJKO\ DV D EHQHILW WKDW ERWK
DQGWDNLQJXSWKHDWWDFNRQQDWXUHWKXVIRUFLQJLWWRREH\KXPDQ LQGLYLGXDOV DQG UDFHV KDYH JLYHQ WKHP DQ HVWDEOLVKHG SRVLWLRQ
ZLOOXQGHUWKHJXLGDQFHRIVFLHQFH2QHLVZRUNLQJWKHQZLWK ZLWKLQWKHLUOLELGRHFRQRP\,WLVQRWPHUHO\WKHLPPHGLDWHJDLQ
DOO IRU WKH JRRG RI DOO %XW WKH PRVW LQWHUHVWLQJ PHWKRGV IRU LQSOHDVXUHZKLFKRQHRZHVWRWKHPEXWDOVRDPHDVXUHRIWKDW
DYHUWLQJ SDLQ DUH WKRVH ZKLFK DLP LQ LQIOXHQFLQJ WKH RUJDQLVP LQGHSHQGHQFHRIWKHRXWHUZRUOGZKLFKLVVRVRUHO\FUDYHG0HQ
LWVHOI,QWKHODVWDQDO\VLVDOOSDLQLVEXW NQRZWKDWZLWKWKHKHOSWKH\FDQJHWIURPGURZQLQJWKHLUFDUHV
WKH\FDQDWDQ\WLPHVOLSDZD\IURPWKHRSSUHVVLRQRIUHDOLW\DQG
ILQGDUHIXJHLQDZRUOGRIWKHLURZQZKHUHSDLQIXOIHHOLQJVGR
QRW HQWHU :H DUH DZDUH WKDW LW LV MXVW WKLV SURSHUW\ ZKLFK
VHQVDWLRQLWRQO\H[LVWVLQVRIDUDVZHIHHOLWDQGZHIHHOLWRQO\ FRQVWLWXWHV WKH GDQJHU DQG LQMXULRXVQHVV RI LQWR[LFDWLQJ
LQFRQVHTXHQFHRIFHUWDLQFKDUDFWHULVWLFVRIRXURUJDQLVP VXEVWDQFHV ,Q FHUWDLQ FLUFXPVWDQFHV WKH\ DUH WR EODPH ZKHQ
YDOXDEOHHQHUJLHVZKLFKFRXOGKDYHEHHQXVHGWRLPSURYHWKHORW
RIKXPDQLW\DUHXVHOHVVO\ZDVWHG
7KHFUXGHVWRIWKHVHPHWKRGVRILQIOXHQFLQJWKHERG\EXWDOVR
WKHPRVWHIIHFWLYHLVWKHFKHPLFDORQHWKDWRILQWR[LFDWLRQ,GR 7KH FRPSOLFDWHG VWUXFWXUH RI RXU PHQWDO DSSDUDWXV DGPLWV
QRWWKLQNDQ\RQHHQWLUHO\XQGHUVWDQGVWKHLURSHUDWLRQEXWLWLVD KRZHYHU RI D ZKROH VHULHV RI RWKHU NLQGV RI LQIOXHQFH 7KH
IDFWWKDWWKHUHDUHFHUWDLQVXEVWDQFHVIRUHLJQWRWKHERG\ZKLFK JUDWLILFDWLRQRILQVWLQFWVLVKDSSLQHVVEXWZKHQWKHRXWHUZRUOG
ZKHQ SUHVHQW LQ WKH EORRG RU WLVVXHV GLUHFWO\ FDXVH XV
OHWVXVVWDUYHUHIXVHVXVVDWLVIDFWLRQRIRXUQHHGVWKH\EHFRPH DQDLGLQWKLV,WVVXFFHVVLVJUHDWHVWZKHQDPDQNQRZVKRZWR
WKH FDXVH RI YHU\ JUHDW VXIIHULQJ 6R WKH KRSH LV ERUQ WKDW E\ KHLJKWHQ VXIILFLHQWO\ KLV FDSDFLW\ IRU REWDLQLQJ SOHDVXUH IURP
LQIOXHQFLQJ WKHVH LPSXOVHV RQH PD\ HVFDSH VRPH PHDVXUH RI PHQWDO DQG LQWHOOHFWXDO ZRUN )DWH KDV OLWWOH SRZHU DJDLQVW KLP
VXIIHULQJ7KLVW\SHRIGHIHQFHDJDLQVWSDLQQRORQJHUUHODWHVWR WKHQ7KLVNLQGRIVDWLVIDFWLRQVXFKDVWKHDUWLVWVMR\LQFUHDWLRQ
WKHVHQVRU\DSSDUDWXVLWVHHNVWRFRQWUROWKHLQWHUQDOVRXUFHVRI LQ HPERG\LQJ KLV SKDQWDVLHV RU WKH VFLHQWLVWV LQ VROYLQJ
RXU QHHGV WKHPVHOYHV $Q H[WUHPH IRUP RI LW FRQVLVWV LQ SUREOHPV RU GLVFRYHULQJ WUXWK KDV D VSHFLDO TXDOLW\ ZKLFK ZH
DQQLKLODWLRQRIWKHLQVWLQFWVDVWDXJKWE\WKHZLVGRPRIWKH(DVW VKDOO FHUWDLQO\ RQH GD\ EH DEOH WR GHILQH PHWDSV\FKRORJLFDOO\
DQG SUDFWLVHG E\ WKH <RJL :KHQ LW VXFFHHGV LW LV WUXH LW 8QWLOWKHQZHFDQRQO\VD\PHWDSKRULFDOO\LWVHHPVWRXVKLJKHU
LQYROYHV JLYLQJ XS DOO RWKHU DFWLYLWLHV DV ZHOO VDFULILFLQJ WKH DQGILQHU EXW FRPSDUHG ZLWK WKDW RI JUDWLI\LQJ JURVV SULPLWLYH
ZKROHRIOLIH DQGDJDLQE\DQRWKHUSDWKWKHRQO\KDSSLQHVVLW LQVWLQFWV LWV LQWHQVLW\ LV WHPSHUHG DQG GLIIXVHG LW GRHV QRW
EULQJVLVWKDWRISHDFH7KHVDPHZD\LVWDNHQZKHQWKHDLPLV RYHUZKHOP XV SK\VLFDOO\ 7KH ZHDN SRLQW RI WKLV PHWKRG
OHVV H[WUHPH DQG RQO\ FRQWURO RI WKH LQVWLQFWV LV VRXJKW :KHQ KRZHYHULVWKDWLWLVQRWJHQHUDOO\DSSOLFDEOHLWLVRQO\DYDLODEOH
WKLVLVVRWKHKLJKHUPHQWDOV\VWHPVZKLFKUHFRJQL]HWKHUHDOLW\ WRWKHIHZ,WSUHVXSSRVHVVSHFLDOJLIWVDQGGLVSRVLWLRQVZKLFKDUH
SULQFLSOHKDYHWKHXSSHUKDQG7KHDLPRIJUDWLILFDWLRQLVE\QR QRW YHU\ FRPPRQO\ IRXQG LQ D VXIILFLHQW GHJUHH $QG HYHQ WR
PHDQV DEDQGRQHG LQ WKLV FDVH D FHUWDLQ GHJUHH RI SURWHFWLRQ WKHVH IHZ LW GRHV QRW VHFXUH FRPSOHWH SURWHFWLRQ DJDLQVW
DJDLQVW VXIIHULQJ LV VHFXUHG LQ WKDW ODFN RI VDWLVIDFWLRQ FDXVHV VXIIHULQJLWJLYHVQRLQYXOQHUDEOHDUPRXUDJDLQVWWKHDUURZVRI
OHVVSDLQZKHQWKHLQVWLQFWVDUHNHSWLQFKHFNWKDQZKHQWKH\DUH IDWH DQG LW XVXDOO\ IDLOV ZKHQ D PDQV RZQ ERG\ EHFRPHV D
XQEULGOHG 2Q WKH RWKHU KDQG WKLV EULQJV ZLWK LW DQ XQGHQLDEOH VRXUFHRIVXIIHULQJWRKLP
UHGXFWLRQLQWKHGHJUHHRIHQMR\PHQWREWDLQDEOH7KHIHHOLQJRI
KDSSLQHVVSURGXFHGE\LQGXOJHQFHRIDZLOGXQWDPHGFUDYLQJLV :KHQWKHUHLVQRVSHFLDOGLVSRVLWLRQLQDPDQLPSHUDWLYHO\
LQFRPSDUDEO\ PRUH LQWHQVH WKDQ LV WKH VDWLVI\LQJ RI D FXUEHG SUHVFULELQJWKHGLUHFWLRQRIKLVOLIHLQWHUHVWWKH
GHVLUH 7KH LUUHVLVWLELOLW\ RI SHUYHUWHG LPSXOVHV SHUKDSV WKH RUGLQDU\ ZRUN DOO FDQ GR IRU D OLYHOLKRRG FDQ SOD\ WKH SDUW
FKDUP RI IRUELGGHQ WKLQJV JHQHUDOO\ PD\ LQ WKLV ZD\ EH ZKLFK9ROWDLUHZLVHO\DGYRFDWHGLWVKRXOGGRLQRXUOLYHV
H[SODLQHGHFRQRPLFDOO\ ,W LV QRW SRVVLEOH WR GLVFXVV WKH VLJQLILFDQFH RI ZRUN IRU WKH
HFRQRPLFVRIWKHOLELGRDGHTXDWHO\ZLWKLQWKHOLPLWV
RI D VKRUW VXUYH\ /D\LQJ VWUHVV XSRQ LPSRUWDQFH RI ZRUN
$QRWKHUPHWKRGRIJXDUGLQJDJDLQVWSDLQLVE\XVLQJWKHOLELGR KDVDJUHDWHUHIIHFWWKDQDQ\RWKHUWHFKQLTXHRIOLYLQJLQ
GLVSODFHPHQWVWKDWRXUPHQWDOHTXLSPHQWDOORZVRIE\ZKLFKLW WKHGLUHFWLRQRIELQGLQJWKHLQGLYLGXDOPRUHFORVHO\WRUHDOLW\
JDLQVVRJUHDWO\LQIOH[LELOLW\7KHWDVNLVWKHQRQHRIWUDQVIHUULQJ LQKLVZRUNKHLVDWOHDVWVHFXUHO\DWWDFKHGWRDSDUW
WKH LQVWLQFWXDO DLPV LQWR VXFK GLUHFWLRQV WKDW WKH\ FDQQRW EH RI UHDOLW\ WKH KXPDQ FRPPXQLW\ :RUN LV QR OHVV YDOXDEOH
IUXVWUDWHGE\WKHRXWHUZRUOG6XEOLPDWLRQRIWKHLQVWLQFWVOHQGV IRUWKHRSSRUWXQLW\LWDQGWKHKXPDQUHODWLRQVFRQQHFWHG
ZLWKLWSURYLGHIRUDYHU\FRQVLGHUDEOHGLVFKDUJHRIOLELGLQDO DUW DIIHFWV XV EXW DV D PLOG QDUFRWLF DQG FDQ SURYLGH QR PRUH
FRPSRQHQWLPSXOVHVQDUFLVVLVWLFDJJUHVVLYHDQGHYHQ WKDQ D WHPSRUDU\ UHIXJH IRU XV IURP WKH KDUGVKLSV RI OLIH LWV
HURWLF WKDQ EHFDXVH LW LV LQGLVSHQVDEOH IRU VXEVLVWHQFH DQG LQIOXHQFHLVQRWVWURQJHQRXJKWRPDNHXVIRUJHWUHDOPLVHU\
MXVWLILHVH[LVWHQFHLQDVRFLHW\7KHGDLO\ZRUNRIHDUQLQJ
D OLYHOLKRRG DIIRUGV SDUWLFXODU VDWLVIDFWLRQ ZKHQ LW KDV EHHQ &I)RUPXODWLRQVUHJDUGLQJWKH7ZR3ULQFLSOHVLQ0HQWDO
VHOHFWHGE\IUHHFKRLFHLHZKHQWKURXJKVXEOLPDWLRQ )XQFWLRQLQJ  &ROOHFWHG3DSHUV,9DQG*HQHUDO
LW HQDEOHV XVH WR EH PDGH RI H[LVWLQJ LQFOLQDWLRQV RI ,QWURGXFWLRQWR3V\FKR$QDO\VLV  /HFWXUH;;,,,
LQVWLQFWXDOLPSXOVHVWKDWKDYHUHWDLQHGWKHLUVWUHQJWKRUDUH
PRUHLQWHQVHWKDQXVXDOIRUFRQVWLWXWLRQDOUHDVRQV$QG\HW $QRWKHU PHWKRG RSHUDWHV PRUH HQHUJHWLFDOO\ DQG WKRURXJKO\ LW
DVDSDWKWRKDSSLQHVVZRUNLVQRWYDOXHGYHU\KLJKO\ UHJDUGVUHDOLW\DVWKHVRXUFHRIDOOVXIIHULQJDVWKHRQHDQGRQO\
E\ PHQ 7KH\ GR QRW UXQ DIWHU LW DV WKH\ GR DIWHU RWKHU HQHP\ZLWKZKRPOLIHLVLQWROHUDEOHDQGZLWKZKRPWKHUHIRUH
RSSRUWXQLWLHVIRUJUDWLILFDWLRQ7KHJUHDWPDMRULW\ZRUNRQO\ DOOUHODWLRQVPXVWEHEURNHQRIILIRQHLVWREHKDSS\LQDQ\ZD\
ZKHQ IRUFHG E\ QHFHVVLW\ DQG WKLV QDWXUDO KXPDQ DYHUVLRQ DW DOO 7KH KHUPLW WXUQV KLV EDFN RQ WKLV ZRUOG KH ZLOO KDYH
WRZRUNJLYHVULVHWRWKHPRVWGLIILFXOWVRFLDOSUREOHPV QRWKLQJWRGRZLWKLW%XWRQHFDQGRPRUHWKDQWKDWRQHFDQWU\
WR UHFUHDWH LW WU\ WR EXLOG XS DQRWKHU LQVWHDG IURP ZKLFK WKH
7KLV EHKDYLRXU UHYHDOV FOHDUO\ HQRXJK LWV DLPWKDW RI PDNLQJ PRVW XQEHDUDEOH IHDWXUHV DUH HOLPLQDWHG DQG UHSODFHG E\ RWKHUV
RQHVHOI LQGHSHQGHQW RI WKH H[WHUQDO ZRUOG E\ ORRNLQJ IRU FRUUHVSRQGLQJ WR RQHV RZQ ZLVKHV +H ZKR LQ KLV GHVSDLU DQG
KDSSLQHVVLQWKHLQQHUWKLQJVRIWKHPLQGLQWKHQH[WPHWKRGWKH GHILDQFH VHWV RXW RQ WKLV SDWK ZLOO QRW DV D UXOH JHW YHU\ IDU
VDPH IHDWXUHV DUH HYHQ PRUH PDUNHG 7KH FRQQHFWLRQ ZLWK UHDOLW\ ZLOO EH WRR VWURQJ IRU KLP +H EHFRPHV D PDGPDQ DQG
UHDOLW\ LV ORRVHU VWLOO VDWLVIDFWLRQ LV REWDLQHG WKURXJK LOOXVLRQV XVXDOO\ ILQGV QR RQH WR KHOS KLP LQ FDUU\LQJ WKURXJK KLV
ZKLFKDUHUHFRJQL]HGDVVXFKZLWKRXWWKHGLVFUHSDQF\EHWZHHQ GHOXVLRQ ,W LV VDLG KRZHYHU WKDW HDFK RQH RI XV EHKDYHV LQ
WKHPDQGUHDOLW\EHLQJDOORZHGWRLQWHUIHUHZLWKWKHSOHDVXUHWKH\ VRPH UHVSHFW OLNH WKH SDUDQRLDF VXEVWLWXWLQJ D ZLVKIXOILOPHQW
JLYH 7KHVH LOOXVLRQV DUH GHULYHG IURP WKH OLIH RI SKDQWDV\ IRU VRPH DVSHFW RI WKH ZRUOG ZKLFK LV XQEHDUDEOH WR KLP DQG
ZKLFK DW WKH WLPH ZKHQ WKH VHQVH RI UHDOLW\ GHYHORSHG ZDV FDUU\LQJWKLVGHOXVLRQWKURXJKLQWRUHDOLW\:KHQDODUJHQXPEHU
H[SUHVVO\H[HPSWHGIURPWKHGHPDQGVRIWKHUHDOLW\WHVWDQGVHW RISHRSOHPDNHWKLVDWWHPSWWRJHWKHUDQGWU\WRREWDLQDVVXUDQFH
DSDUW IRU WKH SXUSRVH RI IXOILOOLQJ ZLVKHV ZKLFK ZRXOG EH YHU\ RI KDSSLQHVV DQG SURWHFWLRQ IURP VXIIHULQJ E\ D GHOXVLRQDO
KDUGWRUHDOL]H$WWKHKHDGRIWKHVHSKDQWDV\SOHDVXUHVVWDQGVWKH WUDQVIRUPDWLRQ RI UHDOLW\ LW DFTXLUHV VSHFLDO VLJQLILFDQFH 7KH
HQMR\PHQWRIZRUNVRIDUWZKLFKWKURXJKWKHDJHQF\RIWKHDUWLVW UHOLJLRQVRIKXPDQLW\WRRPXVWEHFODVVLILHGDVPDVVGHOXVLRQV
LVRSHQHGWRWKRVHZKRFDQQRWWKHPVHOYHVFUHDWH7KRVHZKR RI WKLV NLQG 1HHGOHVV WR VD\ QR RQH ZKR VKDUHV D GHOXVLRQ
DUH VHQVLWLYH WR WKH LQIOXHQFH RI DUW GR QRW NQRZ KRZ WR UDWH LW UHFRJQL]HVLWDVVXFK
KLJKHQRXJKDVDVRXUFHRIKDSSLQHVVDQGFRQVRODWLRQLQOLIH<HW
, GR QRW VXSSRVH WKDW , KDYH HQXPHUDWHG DOO WKH PHWKRGV E\ ZH KDYH ORVW RXU ORYHREMHFW RU LWV ORYH %XW WKLV GRHV QRW
ZKLFK PHQ VWULYH WR ZLQ KDSSLQHVV DQG NHHS VXIIHULQJ DW ED\ FRPSOHWHWKHVWRU\RIWKDWZD\RIOLIHZKLFKEDVHVKDSSLQHVVRQ
DQG , NQRZ WRR WKDW WKH PDWHULDO PLJKW KDYH EHHQ DUUDQJHG ORYHWKHUHLVPXFKPRUHWREHVDLGDERXWLW
GLIIHUHQWO\ 2QH RI WKHVH PHWKRGV , KDYH QRW \HW PHQWLRQHG DW
DOOQRWEHFDXVH,KDGIRUJRWWHQLWEXWEHFDXVHLWZLOOLQWHUHVWXVLQ
DQRWKHUFRQQHFWLRQ+RZZRXOGLWEHSRVVLEOHWRIRUJHWWKLVZD\ :H PD\ KHUH JR RQ WR FRQVLGHU WKH LQWHUHVWLQJ FDVH LQ ZKLFK
RIDOORWKHUVRISUDFWLVLQJWKHDUWRIOLIH,WLVFRQVSLFXRXVIRULWV KDSSLQHVVLQOLIHLVVRXJKWILUVWDQGIRUHPRVWLQWKHHQMR\PHQWRI
UHPDUNDEOHFDSDFLW\WRFRPELQHFKDUDFWHULVWLFIHDWXUHV1HHGOHVV EHDXW\ ZKHUHYHU LW LV WR EH IRXQG E\ RXU VHQVHV DQG RXU
WRVD\LWWRRVWULYHVWREULQJDERXWLQGHSHQGHQFHRIIDWHDVZH MXGJPHQW WKH EHDXW\ RI KXPDQ IRUPV DQG PRYHPHQWV RI
PD\ EHVW FDOO LWDQG ZLWK WKLV REMHFW LW ORRNV IRU VDWLVIDFWLRQ QDWXUDO REMHFWV RI ODQGVFDSHV RI DUWLVWLF DQG HYHQ VFLHQWLILF
ZLWKLQ WKH PLQG DQG XVHV WKH FDSDFLW\ IRU GLVSODFLQJ OLELGR FUHDWLRQV $V D JRDO LQ OLIH WKLV DHVWKHWLF DWWLWXGH RIIHUV OLWWOH
ZKLFKZHPHQWLRQHGEHIRUHEXWLWGRHVQRWWXUQDZD\IURPWKH SURWHFWLRQ DJDLQVW WKH PHQDFH RI VXIIHULQJ EXW LW LV DEOH WR
RXWHU ZRUOG RQ WKH FRQWUDU\ LW WDNHV D ILUP KROG RI LWV REMHFWV FRPSHQVDWHIRUDJUHDWGHDO7KHHQMR\PHQWRIEHDXW\SURGXFHV
DQG REWDLQV KDSSLQHVV IURP DQ HPRWLRQDO UHODWLRQ WR WKHP 1RU D SDUWLFXODU PLOGO\ LQWR[LFDWLQJ NLQG RI VHQVDWLRQ 7KHUH LV QR
LV LW FRQWHQW WR VWULYH IRU DYRLGDQFH RI SDLQWKDW JRDO RI ZHDU\ YHU\ HYLGHQW XVH LQ EHDXW\ WKH QHFHVVLW\ RI LW IRU FXOWXUDO
UHVLJQDWLRQ UDWKHU LW SDVVHV WKDW E\ KHHGOHVVO\ DQG KROGV IDVW WR SXUSRVHV LV QRW DSSDUHQW DQG \HW FLYLOL]DWLRQ FRXOG QRW GR
WKH GHHSURRWHG SDVVLRQDWH VWULYLQJ IRU D SRVLWLYH IXOILOPHQW RI ZLWKRXW LW 7KH VFLHQFH RI DHVWKHWLFV LQYHVWLJDWHV WKH FRQGLWLRQV
KDSSLQHVV 3HUKDSV LW UHDOO\ FRPHV QHDUHU WR WKLV JRDO WKDQ DQ\ LQ ZKLFK WKLQJV DUH UHJDUGHG DV EHDXWLIXO LW FDQ JLYH QR
RWKHU PHWKRG , DP VSHDNLQJ RI FRXUVH RI WKDW ZD\ RI OLIH H[SODQDWLRQRIWKHQDWXUHRURULJLQRIEHDXW\DVXVXDOLWVODFNRI
ZKLFK PDNHV ORYH WKH FHQWUH RI DOO WKLQJV DQG DQWLFLSDWHV DOO UHVXOWV LV FRQFHDOHG XQGHU D IORRG RI UHVRXQGLQJ DQG
KDSSLQHVVIURPORYLQJDQGEHLQJORYHG7KLVDWWLWXGHLVIDPLOLDU PHDQLQJOHVVZRUGV8QIRUWXQDWHO\SV\FKRDQDO\VLVWRRKDVOHVV
HQRXJK WR DOO RI XV RQH RI WKH IRUPV LQ ZKLFK ORYH PDQLIHVWV WRVD\DERXWEHDXW\WKDQDERXWPRVWWKLQJV,WVGHULYDWLRQIURP
LWVHOI VH[XDO ORYH JLYHV XV RXU PRVW LQWHQVH H[SHULHQFH RI DQ WKHUHDOPVRIVH[XDOVHQVDWLRQLVDOOWKDWVHHPVFHUWDLQWKHORYH
RYHUZKHOPLQJ SOHDVXUDEOH VHQVDWLRQ DQG VR IXUQLVKHV D RIEHDXW\LVDSHUIHFWH[DPSOHRIDIHHOLQJZLWKDQLQKLELWHGDLP
SURWRW\SHIRURXUVWULYLQJVDIWHUKDSSLQHVV:KDWLVPRUHQDWXUDO %HDXW\ DQG DWWUDFWLRQ DUH ILUVW RI DOO WKH DWWULEXWHV RI D VH[XDO
WKDQWKDWZHVKRXOGSHUVLVWLQVHHNLQJKDSSLQHVVDORQJWKHSDWK REMHFW,WLVUHPDUNDEOHWKDWWKHJHQLWDOVWKHPVHOYHVWKHVLJKWRI
E\ZKLFKZHILUVWHQFRXQWHUHGLW"7KHZHDNVLGHRIWKLVZD\RI ZKLFK LV DOZD\V H[FLWLQJ DUH KDUGO\ HYHU UHJDUGHG DV EHDXWLIXO
OLYLQJLVFOHDUO\HYLGHQWDQGZHUHLWQRWIRUWKLVQRKXPDQEHLQJ WKH TXDOLW\ RI EHDXW\ VHHPV RQ WKH RWKHU KDQG WR DWWDFK WR
ZRXOG HYHU KDYH WKRXJKW RI DEDQGRQLQJ WKLV SDWK WR KDSSLQHVV FHUWDLQVHFRQGDU\VH[XDOFKDUDFWHUV
LQ IDYRXU RI DQ\ RWKHU :H DUH QHYHU VR GHIHQFHOHVV DJDLQVW
VXIIHULQJDVZKHQZHORYHQHYHUVRIRUORUQO\XQKDSS\DVZKHQ
,Q VSLWH RI WKH LQFRPSOHWHQHVV RI WKHVH FRQVLGHUDWLRQV , ZLOO
YHQWXUHRQDIHZUHPDUNVLQFRQFOXVLRQRIWKLVGLVFXVVLRQ7KH ZLVGRP ZRXOG SUREDEO\ DGPRQLVK XV DOVR QRW WR DQWLFLSDWH DOO
JRDO WRZDUGV ZKLFK WKH SOHDVXUHSULQFLSOH LPSHOV XV RI RXUKDSSLQHVVIURPRQHTXDUWHUDORQH6XFFHVVLVQHYHUFHUWDLQ
EHFRPLQJKDSS\LVQRWDWWDLQDEOH\HWZHPD\QRWQD\FDQQRWJLYH LWGHSHQGVRQWKHFRRSHUDWLRQRIPDQ\IDFWRUVSHUKDSVRQQRQH
XSWKHHIIRUWWRFRPHQHDUHUWRUHDOL]DWLRQRILWE\VRPHPHDQV PRUHWKDQWKHFDSDFLW\RIWKHPHQWDOFRQVWLWXWLRQWRDGDSWLWVHOI
RU RWKHU 9HU\ GLIIHUHQW SDWKV PD\ EH WDNHQ WRZDUGV LW VRPH WR WKH RXWHU ZRUOG DQG WKHQ XWLOL]H WKLV ODVW IRU REWDLQLQJ
SXUVXH WKH SRVLWLYH DVSHFW RI WKH DLP DWWDLQPHQW RI SOHDVXUH SOHDVXUH $Q\ RQH ZKR LV ERUQ ZLWK D VSHFLDOO\ XQIDYRXUDEOH
RWKHUV WKH QHJDWLYH DYRLGDQFH RI SDLQ %\ QRQH RI WKHVH ZD\V LQVWLQFWXDOFRQVWLWXWLRQDQGZKRVHOLELGRFRPSRQHQWVGRQRWJR
FDQ ZH DFKLHYH DOO WKDW ZH GHVLUH ,Q WKDW PRGLILHG VHQVH LQ WKURXJK WKH WUDQVIRUPDWLRQ DQG PRGLILFDWLRQ QHFHVVDU\ IRU
ZKLFKZHKDYHVHHQLWWREHDWWDLQDEOHKDSSLQHVVLVDSUREOHPRI VXFFHVVIXO DFKLHYHPHQW LQ ODWHU OLIH ZLOO ILQG LW KDUG WR REWDLQ
WKH HFRQRPLFV RI WKH OLELGR LQ HDFK LQGLYLGXDO 7KHUH LV QR KDSSLQHVV IURP KLV H[WHUQDO HQYLURQPHQW HVSHFLDOO\ LI KH LV
VRYHUHLJQ UHFLSH LQ WKLV PDWWHU ZKLFK VXLWV DOO HDFK RQH PXVW IDFHG ZLWK WKH PRUH GLIILFXOW WDVNV 2QH ODVW SRVVLELOLW\ RI
ILQGRXWIRUKLPVHOIE\ZKLFKSDUWLFXODUPHDQVKHPD\DFKLHYH GHDOLQJ ZLWK OLIH UHPDLQV WR VXFK SHRSOH DQG LW RIIHUV WKHP DW
IHOLFLW\ $OO NLQGV RI GLIIHUHQW IDFWRUV ZLOO RSHUDWH WR LQIOXHQFH OHDVW VXEVWLWXWHJUDWLILFDWLRQV LW WDNHV WKH IRUP RI WKH IOLJKW LQWR
KLVFKRLFH,WGHSHQGVRQKRZPXFKUHDOJUDWLILFDWLRQKHLVOLNHO\ QHXURWLF LOOQHVV DQG WKH\ PRVWO\ DGRSW LW ZKLOH WKH\ DUH VWLOO
WR REWDLQ LQ WKH H[WHUQDO ZRUOG DQG KRZ IDU KH ZLOO ILQG LW \RXQJ7KRVHZKRVHHIIRUWVWRREWDLQKDSSLQHVVFRPHWRQRXJKW
QHFHVVDU\WRPDNHKLPVHOILQGHSHQGHQWRILWILQDOO\WRRRQWKH LQODWHU\HDUVVWLOOILQG
EHOLHI KH KDV LQ KLPVHOI RI KLV SRZHU WR DOWHU LW LQ DFFRUGDQFH
ZLWKKLVZLVKHV(YHQDWWKLVVWDJHWKHPHQWDOFRQVWLWXWLRQRIWKH
LQGLYLGXDO ZLOO SOD\ D GHFLVLYH SDUW DVLGH IURP DQ\ H[WHUQDO
FRQVLGHUDWLRQV 7KH PDQ ZKR LV SUHGRPLQDQWO\ HURWLF ZLOO FRQVRODWLRQLQWKHSOHDVXUHRIFKURQLFLQWR[LFDWLRQRUHOVHWKH\
FKRRVH HPRWLRQDO UHODWLRQVKLSV ZLWK RWKHUV EHIRUH DOO HOVH WKH HPEDUNXSRQWKDWGHVSDLULQJDWWHPSWDWUHYROWSV\FKRVLV
QDUFLVVLVWLF W\SH ZKR LV PRUH VHOIVXIILFLHQW ZLOO VHHN KLV
HVVHQWLDOVDWLVIDFWLRQVLQWKHLQQHUZRUNLQJVRIKLVRZQVRXOWKH
PDQRIDFWLRQZLOOQHYHUDEDQGRQWKHH[WHUQDOZRUOGLQZKLFKKH 5HOLJLRQFLUFXPVFULEHVWKHVHPHDVXUHVRIFKRLFHDQGDGDSWDWLRQ
FDQ HVVD\ KLV SRZHU 7KH LQWHUHVWV RI QDUFLVVLVWLF W\SHV ZLOO EH E\XUJLQJXSRQHYHU\RQHDOLNHLWVVLQJOHZD\RIDFKLHYLQJ
GHWHUPLQHGE\WKHLUSDUWLFXODUJLIWVDQGWKHGHJUHHRILQVWLQFWXDO KDSSLQHVVDQGJXDUGLQJDJDLQVWSDLQ,WVPHWKRGFRQVLVWVLQ
VXEOLPDWLRQ RI ZKLFK WKH\ DUH FDSDEOH :KHQ DQ\ FKRLFH LV GHFU\LQJWKHYDOXHRIOLIHDQGSURPXOJDWLQJDYLHZRIWKHUHDO
SXUVXHG WR DQ H[WUHPH LW SHQDOL]HV LWVHOI LQ WKDW LW H[SRVHV WKH ZRUOGWKDWLVGLVWRUWHGOLNHDGHOXVLRQDQGERWKRIWKHVHLPSO\D
LQGLYLGXDO WR WKH GDQJHUV DFFRPSDQ\LQJ DQ\ RQH H[FOXVLYH OLIH SUHOLPLQDU\LQWLPLGDWLQJLQIOXHQFHXSRQLQWHOOLJHQFH$WVXFKD
LQWHUHVW ZKLFK PD\ DOZD\V SURYH LQDGHTXDWH -XVW DV D FDXWLRXV FRVWE\WKHIRUFLEOHLPSRVLWLRQRIPHQWDOLQIDQWLOLVPDQG
EXVLQHVVPDQ DYRLGV LQYHVWLQJ DOO KLV FDSLWDO LQ RQH FRQFHUQ VR LQGXFLQJDPDVVGHOXVLRQUHOLJLRQVXFFHHGVLQVDYLQJPDQ\
SHRSOHIURPLQGLYLGXDOQHXURVHV%XWOLWWOHPRUH7KHUHDUHDV
ZHKDYHVDLGPDQ\SDWKVE\ZKLFKWKHKDSSLQHVVDWWDLQDEOHIRU
PDQFDQEHUHDFKHGEXWQRQHZKLFKLVFHUWDLQWRWDNHKLPWRLW
1RUFDQUHOLJLRQNHHSKHUSURPLVHVHLWKHU:KHQWKHIDLWKIXO
ILQGWKHPVHOYHVUHGXFHGLQWKHHQGWRVSHDNLQJRI*RGV
LQVFUXWDEOHGHFUHHWKH\WKHUHE\DYRZWKDWDOOWKDWLVOHIWWRWKHP ,,,
LQWKHLUVXIIHULQJVLVXQFRQGLWLRQDOVXEPLVVLRQDVDODVW
UHPDLQLQJFRQVRODWLRQDQGVRXUFHRIKDSSLQHVV$QGLIDPDQLV
285GLVFXVVLRQRIKDSSLQHVVKDVVRIDUQRWWDXJKWXVPXFKWKDW
ZLOOLQJWRFRPHWRWKLVKHFRXOGSUREDEO\KDYHDUULYHGWKHUHE\
LV QRW DOUHDG\ FRPPRQ NQRZOHGJH 1RU GRHV WKH SURVSHFW RI
DVKRUWHUURDG
GLVFRYHULQJ DQ\WKLQJ QHZ VHHP PXFK JUHDWHU LI ZH JR RQ ZLWK
WKH SUREOHP RI ZK\ LW LV VR KDUG IRU PDQNLQG WR EH KDSS\ :H
JDYH WKH DQVZHU EHIRUH ZKHQ ZH FLWHG WKH WKUHH VRXUFHV RI
KXPDQ VXIIHULQJV QDPHO\ WKH VXSHULRU IRUFH RI QDWXUH WKH
GLVSRVLWLRQ WR GHFD\ RI RXU ERGLHV DQG WKH LQDGHTXDF\ RI RXU
PHWKRGV RI UHJXODWLQJ KXPDQ UHODWLRQV LQ WKH IDPLO\ WKH
FRPPXQLW\ DQG WKH VWDWH ,Q UHJDUG WR WKH ILUVW WZR RXU
MXGJPHQWFDQQRWKHVLWDWHLWIRUFHVXVWRUHFRJQL]HWKHVHVRXUFHV
RI VXIIHULQJ DQG WR VXEPLW WR WKH LQHYLWDEOH :H VKDOO QHYHU
FRPSOHWHO\VXEGXHQDWXUHRXUERG\WRRLVDQRUJDQLVPLWVHOID
SDUWRIQDWXUHDQGZLOODOZD\VFRQWDLQWKHVHHGVRIGLVVROXWLRQ
ZLWKLWVOLPLWHGSRZHURIDGDSWDWLRQDQGDFKLHYHPHQW7KHHIIHFW
RIWKLVUHFRJQLWLRQLVLQQRZD\GLVKHDUWHQLQJRQWKHFRQWUDU\LW
SRLQWVRXWWKHGLUHFWLRQIRURXUHIIRUWV,IZHFDQQRWDEROLVKDOO
VXIIHULQJ \HW D JUHDW GHDO RI LW ZH FDQ DQG FDQ PLWLJDWH PRUH
WKH H[SHULHQFH RI VHYHUDO WKRXVDQG \HDUV KDV FRQYLQFHG XV RI
WKLV7RWKHWKLUGWKHVRFLDOVRXUFHRIRXUGLVWUHVVHVZHWDNHXS
D GLIIHUHQW DWWLWXGH :H SUHIHU QRW WR UHJDUG LW DV RQH DW DOO ZH
FDQQRW VHH ZK\ WKH V\VWHPV ZH KDYH RXUVHOYHV FUHDWHG VKRXOG
QRW UDWKHU HQVXUH SURWHFWLRQ DQG ZHOOEHLQJ IRU XV DOO 7R EH
VXUH ZKHQ ZH FRQVLGHU KRZ XQVXFFHVVIXO RXU HIIRUWV WR
VDIHJXDUG DJDLQVW VXIIHULQJ LQ WKLV SDUWLFXODU KDYH SURYHG WKH
VXVSLFLRQ GDZQV XSRQ XV WKDW D ELW RI XQFRQTXHUDEOH QDWXUH
OXUNVFRQFHDOHGEHKLQGWKLVGLIILFXOW\DVZHOOLQWKHVKDSHRIRXU WKLVRSLQLRQRQPDQ\SRLQWVLQVHYHUDOLQVWDQFHVWKHHDVHRIOLIH
RZQPHQWDOFRQVWLWXWLRQ ZDV GXH WR WKH ERXQW\ RI QDWXUH DQG WKH SRVVLELOLWLHV RI UHDG\
VDWLVIDFWLRQ IRU WKH JUHDW KXPDQ QHHGV EXW LW ZDV HUURQHRXVO\
:KHQ ZH VWDUW WR FRQVLGHU WKLV SRVVLELOLW\ ZH FRPH DFURVV D DWWULEXWHG WR WKH DEVHQFH RI WKH FRPSOLFDWHG FRQGLWLRQV RI
SRLQW RI YLHZ ZKLFK LV VR DPD]LQJ WKDW ZH ZLOO SDXVH RYHU LW FLYLOL]DWLRQ 7KH ODVW RI WKH WZR KLVWRULFDO HYHQWV LV HVSHFLDOO\
$FFRUGLQJWRLWRXUVRFDOOHGFLYLOL]DWLRQLWVHOILVWREODPHIRUD IDPLOLDU WR XV LW ZDV ZKHQ SHRSOH EHJDQ WR XQGHUVWDQG WKH
JUHDWSDUWRIRXUPLVHU\DQGZHVKRXOGEHPXFKKDSSLHULIZH QDWXUH RI WKH QHXURVHV ZKLFK WKUHDWHQ WR XQGHUPLQH WKH
ZHUHWRJLYHLWXSDQGJREDFNWRSULPLWLYHFRQGLWLRQV,FDOOWKLV PRGLFXPRIKDSSLQHVVRSHQWRFLYLOL]HGPDQ,WZDVIRXQGWKDW
DPD]LQJEHFDXVHKRZHYHURQHPD\GHILQHFXOWXUHLWLVXQGHQLDEOH PHQEHFRPHQHXURWLFEHFDXVHWKH\FDQQRWWROHUDWHWKHGHJUHHRI
WKDW HYHU\ PHDQV E\ ZKLFK ZH WU\ WR JXDUG RXUVHOYHV DJDLQVW SULYDWLRQ WKDW VRFLHW\ LPSRVHV RQ WKHP LQ YLUWXH RI LWV FXOWXUDO
PHQDFHVIURPWKHVHYHUDOVRXUFHVRIKXPDQGLVWUHVVLVDSDUWRI LGHDOV DQG LW ZDV VXSSRVHG WKDW D UHWXUQ WR JUHDWHU SRVVLELOLWLHV
WKLVVDPHFXOWXUH RI KDSSLQHVV ZRXOG HQVXH LI WKHVH VWDQGDUGV ZHUH DEROLVKHG RU
JUHDWO\UHOD[HG
+RZ KDV LW FRPH DERXW WKDW VR PDQ\ SHRSOH KDYH DGRSWHG WKLV
VWUDQJH DWWLWXGH RI KRVWLOLW\ WR FLYLOL]DWLRQ" ,Q P\ RSLQLRQ LW
DURVHIURPDEDFNJURXQGRISURIRXQGORQJVWDQGLQJGLVFRQWHQW $QG WKHUH H[LVWV DQ HOHPHQW RI GLVDSSRLQWPHQW LQ DGGLWLRQ ,Q
ZLWK WKH H[LVWLQJ VWDWH RI FLYLOL]DWLRQ ZKLFK ILQDOO\ FU\VWDOOL]HG WKH ODVW JHQHUDWLRQV PDQ KDV PDGH H[WUDRUGLQDU\ VWULGHV LQ
LQWRWKLVMXGJPHQWDVDUHVXOWRIFHUWDLQKLVWRULFDOKDSSHQLQJV, NQRZOHGJH RI WKH QDWXUDO VFLHQFHV DQG WHFKQLFDO DSSOLFDWLRQ RI
EHOLHYH , FDQ LGHQWLI\ WKH ODVW WZR RI WKHVH , DP QRW OHDUQHG WKHP DQG KDV HVWDEOLVKHG KLV GRPLQLRQ RYHU QDWXUH LQ D ZD\
HQRXJKWRWUDFHWKHOLQNVLQWKHFKDLQEDFNLQWRWKHKLVWRU\RIWKH QHYHUEHIRUHLPDJLQHG7KHGHWDLOVRIWKLVIRUZDUGSURJUHVVDUH
KXPDQ VSHFLHV $W WKH WLPH ZKHQ &KULVWLDQLW\ FRQTXHUHG WKH XQLYHUVDOO\ NQRZQ LW LV XQQHFHVVDU\ WR HQXPHUDWH WKHP
SDJDQ UHOLJLRQV VRPH VXFK DQWDJRQLVP WR FXOWXUH PXVW DOUHDG\ 0DQNLQGLVSURXGRILWVH[SORLWVDQGKDVDULJKWWREH%XWPHQ
KDYH EHHQ DFWLYHO\ DW ZRUN ,W LV FORVHO\ UHODWHG WR WKH ORZ DUH EHJLQQLQJ WR SHUFHLYH WKDW DOO WKLV QHZO\ZRQ SRZHU RYHU
HVWLPDWLRQ SXW XSRQ HDUWKO\ OLIH E\ &KULVWLDQ GRFWULQH 7KH VSDFH DQG WLPH WKLV FRQTXHVW RI WKH IRUFHV RI QDWXUH WKLV
HDUOLHU RI WKH ODVW WZR KLVWRULFDO GHYHORSPHQWV ZDV ZKHQ DV D IXOILOPHQWRIDJHROGORQJLQJVKDVQRWLQFUHDVHGWKHDPRXQWRI
UHVXOW RI YR\DJHV RI GLVFRYHU\ PHQ FDPH LQWR FRQWDFW ZLWK SOHDVXUH WKH\ FDQ REWDLQ LQ OLIH KDV QRW PDGH WKHP IHHO DQ\
SULPLWLYH SHRSOHV DQG UDFHV 7R WKH (XURSHDQV ZKR IDLOHG WR KDSSLHU 7KH YDOLG FRQFOXVLRQ IURP WKLV LV PHUHO\ WKDW SRZHU
REVHUYHWKHPFDUHIXOO\DQGPLVXQGHUVWRRGZKDWWKH\VDZWKHVH RYHUQDWXUHLVQRWWKHRQO\FRQGLWLRQRIKXPDQKDSSLQHVVMXVWDV
SHRSOH VHHPHG WR OHDG VLPSOH KDSS\ OLYHVZDQWLQJ IRU QRWKLQJ LW LV QRW WKH RQO\ JRDO RI FLYLOL]DWLRQV HIIRUWV DQG WKHUH LV QR
VXFK DV WKH WUDYHOOHUV ZKR YLVLWHG WKHP ZLWK DOO WKHLU VXSHULRU JURXQGIRULQIHUULQJWKDWLWVWHFKQLFDOSURJUHVVLVZRUWKOHVVIURP
FXOWXUH ZHUH XQDEOH WR DFKLHYH /DWHU H[SHULHQFH KDV FRUUHFWHG WKHVWDQGSRLQWRIKDSSLQHVV,WSURPSWVRQHWRH[FODLP,VLWQRW
WKHQDSRVLWLYHSOHDVXUHDQXQHTXLYRFDOJDLQLQKDSSLQHVVWREH ,W VHHPV WR EH FHUWDLQ WKDW RXU SUHVHQWGD\ FLYLOL]DWLRQ GRHV QRW
DEOH WR KHDU ZKHQHYHU , OLNH WKH YRLFH RI D FKLOG OLYLQJ LQVSLUH LQ XV D IHHOLQJ RI ZHOOEHLQJ EXW LW LV YHU\ GLIILFXOW WR
KXQGUHGV RI PLOHV DZD\ RU WR NQRZ GLUHFWO\ D IULHQG RI PLQH IRUPDQRSLQLRQZKHWKHULQHDUOLHUWLPHVSHRSOHIHOWDQ\KDSSLHU
DUULYHV DW KLV GHVWLQDWLRQ WKDW KH KDV FRPH ZHOO DQG VDIHO\ DQG ZKDW SDUW WKHLU FXOWXUDO FRQGLWLRQV SOD\HG LQ WKH TXHVWLRQ
WKURXJKWKHORQJDQGWURXEOHVRPHYR\DJH"$QGLVLWQRWKLQJWKDW :H DOZD\V WHQG WR UHJDUG WURXEOH REMHFWLYHO\ L H WR SODFH
PHGLFDO VFLHQFH KDV VXFFHHGHG LQ HQRUPRXVO\ UHGXFLQJ WKH RXUVHOYHV ZLWK RXU RZQ ZDQWV DQG RXU RZQ VHQVLELOLWLHV LQ WKH
PRUWDOLW\RI\RXQJFKLOGUHQWKHGDQJHUVRILQIHFWLRQIRUZRPHQ VDPH FRQGLWLRQV VR DV WR GLVFRYHU ZKDW RSSRUWXQLWLHV IRU
LQ FKLOGELUWK LQGHHG LQ YHU\ FRQVLGHUDEO\ SURORQJLQJ WKH KDSSLQHVVRUXQKDSSLQHVVZHVKRXOGILQGLQWKHP7KLVPHWKRG
DYHUDJH OHQJWK RI KXPDQ OLIH" $QG WKHUH LV VWLOO D ORQJ OLVW RQH RI FRQVLGHULQJ WKH SUREOHP ZKLFK DSSHDUV WR EH REMHFWLYH
FRXOG DGG WR WKHVH EHQHILWV WKDW ZH RZH WR WKH PXFKGHVSLVHG EHFDXVH LW LJQRUHV WKH YDULHWLHV RI VXEMHFWLYH VHQVLWLYLW\ LV RI
HUD RI VFLHQWLILF DQG SUDFWLFDO SURJUHVVEXW D FULWLFDO SHVVLPLVWLF FRXUVH WKH PRVW VXEMHFWLYH SRVVLEOH IRU E\ DSSO\LQJ LW RQH
YRLFH PDNHV LWVHOI KHDUG VD\LQJ WKDW PRVW RI WKHVH DGYDQWDJHV VXEVWLWXWHVRQHVRZQPHQWDODWWLWXGHIRUWKHXQNQRZQDWWLWXGHRI
IROORZWKHPRGHORIWKRVHFKHDSSOHDVXUHVLQWKHDQHFGRWH2QH RWKHU PHQ +DSSLQHVV RQ WKH FRQWUDU\ LV VRPHWKLQJ HVVHQWLDOO\
JHWV WKLV HQMR\PHQW E\ VWLFNLQJ RQHV EDUH OHJ RXWVLGH WKH VXEMHFWLYH +RZHYHU ZH PD\ VKULQN LQ KRUURU DW WKH WKRXJKW RI
EHGFORWKHVRQDFROGZLQWHUVQLJKWDQGWKHQGUDZLQJLWLQDJDLQ FHUWDLQ VLWXDWLRQV WKDW RI WKH JDOOH\VODYHV LQ DQWLTXLW\ RI WKH
,I WKHUH ZHUH QR UDLOZD\ WR PDNH OLJKW RI GLVWDQFHV P\ FKLOG SHDVDQWV LQ WKH 7KLUW\ <HDUV :DU RI WKH YLFWLPV RI WKH
ZRXOG QHYHU KDYH OHIW KRPH DQG , VKRXOG QRW QHHG WKH ,QTXLVLWLRQRIWKH-HZVDZDLWLQJDSRJURPLWLVVWLOOLPSRVVLEOH
WHOHSKRQHWRKHDUKLVYRLFH,IWKHUHZHUHQRYHVVHOVFURVVLQJWKH IRU XV WR IHHO RXUVHOYHV LQWR WKH SRVLWLRQ RI WKHVH SHRSOH WR
RFHDQ P\ IULHQG ZRXOG QHYHU KDYH HPEDUNHG RQ KLV YR\DJH LPDJLQH WKH GLIIHUHQFHV ZKLFK ZRXOG EH EURXJKW DERXW E\
DQG,VKRXOGQRWQHHGWKHWHOHJUDSKWRUHOLHYHP\DQ[LHW\DERXW FRQVWLWXWLRQDO REWXVHQHVV RI IHHOLQJ JUDGXDO VWXSHIDFWLRQ WKH
KLP:KDWLVWKHXVHRIUHGXFLQJWKHPRUWDOLW\RIFKLOGUHQZKHQ FHVVDWLRQ RI DOO DQWLFLSDWLRQ DQG E\ DOO WKH JURVVHU DQG PRUH
LW LV SUHFLVHO\ WKLV UHGXFWLRQ ZKLFK LPSRVHV WKH JUHDWHVW VXEWOH ZD\V LQ ZKLFK LQVHQVLELOLW\ WR ERWK SOHDVXUDEOH DQG
PRGHUDWLRQRQXVLQEHJHWWLQJWKHPVRWKDWWDNHQDOOURXQGZH SDLQIXO VHQVDWLRQV FDQ EH LQGXFHG 0RUHRYHU RQ RFFDVLRQV
GR QRW UHDU PRUH FKLOGUHQ WKDQ LQ WKH GD\V EHIRUH WKH UHLJQ RI ZKHQWKHPRVWH[WUHPHIRUPVRIVXIIHULQJKDYHWREHHQGXUHG
K\JLHQH ZKLOH DW WKH VDPH WLPH ZH KDYH FUHDWHG GLIILFXOW VSHFLDO PHQWDO SURWHFWLYH GHYLFHV FRPH LQWR RSHUDWLRQ ,W VHHPV
FRQGLWLRQVIRUVH[XDOOLIHLQPDUULDJHDQGSUREDEO\FRXQWHUDFWHG WR PH XQSURILWDEOH WR IROORZ XS WKLV DVSHFW RI WKH SUREOHP
WKHEHQHILFLDOHIIHFWVRIQDWXUDOVHOHFWLRQ"$QGZKDWGRZHJDLQ IXUWKHU
E\DORQJOLIHZKHQLWLVIXOORIKDUGVKLSDQGVWDUYHGRIMR\VDQG
VRZUHWFKHGWKDWZHFDQRQO\ZHOFRPHGHDWKDVRXUGHOLYHUHU" ,WLVWLPHWKDWZHVKRXOGWXUQRXUDWWHQWLRQWRWKHQDWXUHRIWKLV
FXOWXUHWKHYDOXHRIZKLFKLVVRPXFKGLVSXWHGIURPWKHSRLQW
RI YLHZ RI KDSSLQHVV 8QWLO ZH KDYH OHDUQW VRPHWKLQJ E\
H[DPLQLQJLWIRURXUVHOYHVZHZLOOQRWORRNURXQGIRUIRUPXODV ZKLFK OLNH KLV PXVFOHV KH FDQ HPSOR\ LQ DQ\ GLUHFWLRQ VKLSV
ZKLFKH[SUHVVLWVHVVHQFHLQDIHZZRUGV:HZLOOEHFRQWHQWWR DQGDLUFUDIWKDYHWKHHIIHFWWKDWQHLWKHUDLUQRUZDWHUFDQSUHYHQW
UHSHDW WKDW WKH ZRUG FXOWXUH GHVFULEHV WKH VXP RI WKH KLV WUDYHUVLQJ WKHP :LWK VSHFWDFOHV KH FRUUHFWV WKH GHIHFWV RI
DFKLHYHPHQWVDQGLQVWLWXWLRQVZKLFKGLIIHUHQWLDWHRXUOLYHVIURP WKH OHQV LQ KLV RZQ H\HV ZLWK WHOHVFRSHV KH ORRNV DW IDU
WKRVH RI RXU DQLPDO IRUHEHDUV DQG VHUYH WZR SXUSRVHV QDPHO\ GLVWDQFHV ZLWK WKH PLFURVFRSH KH RYHUFRPHV WKH OLPLWDWLRQV LQ
WKDWRISURWHFWLQJKXPDQLW\DJDLQVWQDWXUHDQGRIUHJXODWLQJWKH YLVLELOLW\GXHWRWKHVWUXFWXUHRIKLVUHWLQD:LWKWKHSKRWRJUDSKLF
UHODWLRQV RI KXPDQ EHLQJV DPRQJ WKHPVHOYHV ,Q RUGHU WR OHDUQ FDPHUD KH KDV FUHDWHG DQ LQVWUXPHQW ZKLFK UHJLVWHUV WUDQVLWRU\
PRUHWKDQWKLVZHPXVWEULQJWRJHWKHUWKHLQGLYLGXDOIHDWXUHVRI YLVXDO LPSUHVVLRQV MXVW DV WKH JUDPRSKRQH GRHV ZLWK HTXDOO\
FXOWXUHDVWKH\DUHPDQLIHVWHGLQKXPDQFRPPXQLWLHV:HVKDOO WUDQVLHQWDXGLWRU\RQHVERWKDUHDWERWWRPPDWHULDOL]DWLRQVRIKLV
KDYH QR KHVLWDWLRQ LQ DOORZLQJ RXUVHOYHV WR EH JXLGHG E\ WKH RZQ SRZHU RI PHPRU\ :LWK WKH KHOS RI WKH WHOHSKRQH KH FDQ
FRPPRQXVDJHVRIODQJXDJHRUDVRQHPLJKWVD\WKHIHHOLQJRI KHDU DW GLVWDQFHV ZKLFK HYHQ IDLU\WDOHV ZRXOG WUHDW DV
ODQJXDJH FRQILGHQW WKDW ZH VKDOO WKXV WDNH LQWR DFFRXQW LQQHU LQVXSHUDEOH ZULWLQJ WR EHJLQ ZLWK ZDV WKH YRLFH RI WKH DEVHQW
DWWLWXGHVZKLFKVWLOOUHVLVWH[SUHVVLRQLQDEVWUDFWWHUPV GZHOOLQJV ZHUH D VXEVWLWXWH IRU WKH PRWKHUV ZRPE WKDW ILUVW
DERGH LQ ZKLFK KH ZDV VDIH DQG IHOW VR FRQWHQW IRU ZKLFK KH
&I7KH)XWXUHRIDQ,OOXVLRQ SUREDEO\\HDUQVHYHUDIWHU

7KH EHJLQQLQJ LV HDV\ :H UHFRJQL]H DV EHORQJLQJ WR FXOWXUH DOO  3V\FKRDQDO\WLF PDWHULDO DV \HW LQFRPSOHWH DQG QRW
WKHDFWLYLWLHVDQGSRVVHVVLRQVZKLFKPHQXVHWRPDNHWKHHDUWK FDSDEOHRIXQHTXLYRFDOLQWHUSUHWDWLRQQHYHUWKHOHVVDGPLWV
VHUYLFHDEOH WR WKHP WR SURWHFW WKHP DJDLQVW WKH W\UDQQ\ RI RIDVXUPLVHZKLFKVRXQGVIDQWDVWLFHQRXJKDERXWWKHRULJLQ
QDWXUDO IRUFHV DQG VR RQ 7KHUH LV OHVV GRXEW DERXW WKLV DVSHFW RIWKLVKXPDQIHDW,WLVDVLISULPLWLYHPDQKDG
RIFLYLOL]DWLRQWKDQDQ\RWKHU,IZHJREDFNIDUHQRXJKZHILQG KDG WKH LPSXOVH ZKHQ KH FDPH LQ FRQWDFW ZLWK ILUH WR
WKDWWKHILUVWDFWVRIFLYLOL]DWLRQZHUHWKHXVHRIWRROVWKHJDLQLQJ JUDWLI\ DQ LQIDQWLOH SOHDVXUH LQ UHVSHFW RI LW DQG SXW LW RXW
RI SRZHU RYHU ILUH DQG WKH FRQVWUXFWLRQ RI GZHOOLQJV $PRQJ ZLWK
WKHVH WKH DFTXLVLWLRQ RI SRZHU RYHU ILUH VWDQGV RXW DV D TXLWH D VWUHDP RI XULQH 7KH OHJHQGV WKDW ZH SRVVHVV OHDYH QR
H[FHSWLRQDODFKLHYHPHQWZLWKRXWDSURWRW\SHZKLOHWKHRWKHU GRXEWWKDWIODPHVVKRRWLQJXSZDUGVOLNHWRQJXHVZHUH
WZR RSHQHG XS SDWKV ZKLFK KDYH HYHU VLQFH EHHQ SXUVXHG E\ RULJLQDOO\ IHOW WR KDYH D SKDOOLF VHQVH 3XWWLQJ RXW ILUH E\
PDQ WKH VWLPXOXV WRZDUGV ZKLFK LV HDVLO\ LPDJLQHG %\ PHDQV XULQDWLQJZKLFKLVDOVRLQWURGXFHGLQWKHODWHUIDEOHVRI
RIDOOKLVWRROVPDQPDNHVKLVRZQRUJDQVPRUHSHUIHFWERWKWKH *XOOLYHU LQ /LOOLSXW DQG 5DEHODLVV *DUJDQWXDWKHUHIRUH
PRWRU DQG WKH VHQVRU\RU HOVH UHPRYHV WKH REVWDFOHV LQ WKH ZD\ UHSUHVHQWHGDVH[XDODFWZLWKDPDQDQHQMR\PHQWRI
RIWKHLUDFWLYLW\0DFKLQHU\SODFHVJLJDQWLFSRZHUDWKLVGLVSRVDO PDVFXOLQH SRWHQF\ LQ KRPRVH[XDO ULYDOU\ :KRHYHU ZDV WKH
ILUVWWRGHQ\KLPVHOIWKLVSOHDVXUHDQGVSDUHWKHILUH OLH LV HQWLWOHG WR FRQVROH KLPVHOI ZLWK WKH WKRXJKW WKDW WKLV
ZDV DEOH WR WDNH LW ZLWK KLP DQG EUHDN LW LQ WR KLV RZQ HYROXWLRQ ZLOO QRW FRPH WR DQ HQG LQ $ '  )XWXUH DJHV
VHUYLFH%\FXUELQJWKHILUHRIKLVRZQVH[XDOSDVVLRQKHZDV ZLOO SURGXFH IXUWKHU JUHDW DGYDQFHV LQ WKLV UHDOP RI FXOWXUH
DEOH WR WDPH ILUH DV D IRUFH RI QDWXUH 7KLV JUHDW FXOWXUDO SUREDEO\LQFRQFHLYDEOHQRZDQGZLOOLQFUHDVHPDQVOLNHQHVVWR
YLFWRU\ZDVWKXVDUHZDUGIRUUHIUDPLQJIURPJUDWLILFDWLRQ DJRGVWLOOPRUH%XWZLWKWKHDLPRIRXUVWXG\LQPLQGZHZLOO
RIDQLQVWLQFW)XUWKHULWLVDVLIPDQKDGSODFHGZRPDQE\ QRW IRUJHW DOO WKH VDPH WKDW WKH KXPDQ EHLQJ RI WRGD\ LV QRW
WKHKHDUWKDVWKHJXDUGLDQRIWKHILUHKHKDGWDNHQ KDSS\ZLWKDOOKLVOLNHQHVVWRDJRG
FDSWLYHEHFDXVHKHUDQDWRP\PDNHVLWLPSRVVLEOHIRUKHUWR
\LHOGWRVXFKDWHPSWDWLRQ,WLVUHPDUNDEOHKRZ
UHJXODUO\ DQDO\WLF ILQGLQJV WHVWLI\ WR WKH FORVH FRQQHFWLRQ 7KXV ZH UHFRJQL]H WKDW D FRXQWU\ KDV DWWDLQHG D KLJK OHYHO RI
EHWZHHQWKHLGHDVRIDPELWLRQILUHDQGXUHWKUDOHURWLVP FLYLOL]DWLRQZKHQZHILQGWKDWHYHU\WKLQJLQLWWKDWFDQEHKHOSIXO
LQ H[SORLWLQJ WKH HDUWK IRU PDQV EHQHILW DQG LQ SURWHFWLQJ KLP
,W VRXQGV OLNH D IDLU\WDOH EXW QRW RQO\ WKDW WKLV VWRU\ RI ZKDW DJDLQVW QDWXUHHYHU\WKLQJ LQ VKRUW WKDW LV XVHIXO WR KLPLV
PDQE\KLVVFLHQFHDQGSUDFWLFDOLQYHQWLRQVKDVDFKLHYHGRQWKLV FXOWLYDWHG DQG HIIHFWLYHO\ SURWHFWHG ,Q VXFK D FRXQWU\ WKH
HDUWKZKHUHKHILUVWDSSHDUHGDVDZHDNO\PHPEHURIWKHDQLPDO FRXUVH RI ULYHUV ZKLFK WKUHDWHQ WR RYHUIORZ WKHLU EDQNV LV
NLQJGRPDQGRQZKLFKHDFKLQGLYLGXDORIKLVVSHFLHVPXVWHYHU UHJXODWHG WKHLU ZDWHUV JXLGHG WKURXJK FDQDOV WR SODFHV ZKHUH
DJDLQ DSSHDU DV D KHOSOHVV LQIDQW LQFK RI QDWXUH LV D GLUHFW WKH\DUHQHHGHG7KHVRLOLVLQGXVWULRXVO\FXOWLYDWHGDQGSODQWHG
IXOILOPHQW RI DOO RU RI PRVW RI WKH GHDUHVW ZLVKHV LQ KLV IDLU\ ZLWKWKHYHJHWDWLRQVXLWHGWRLWWKHPLQHUDOZHDOWKLVEURXJKWXS
WDOHV $+ WKHVH SRVVHVVLRQV KH KDV DFTXLUHG WKURXJK FXOWXUH DVVLGXRXVO\ IURP WKH GHSWKV DQG ZURXJKW LQWR WKH LPSOHPHQWV
/RQJ DJR KH IRUPHG DQ LGHDO FRQFHSWLRQ RI RPQLSRWHQFH DQG DQGXWHQVLOVWKDWDUHUHTXLUHG7KHPHDQVRIFRPPXQLFDWLRQVDUH
RPQLVFLHQFHZKLFKKHHPERGLHGLQKLVJRGV:KDWHYHUVHHPHG IUHTXHQW UDSLG DQG UHOLDEOH ZLOG DQG GDQJHURXV DQLPDOV KDYH
XQDWWDLQDEOH WR KLV GHVLUHVRU IRUELGGHQ WR KLPKH DWWULEXWHG WR EHHQH[WHUPLQDWHGWKHEUHHGLQJRIWDPHGDQGGRPHVWLFDWHGRQHV
WKHVH JRGV 2QH PD\ VD\ WKHUHIRUH WKDW WKHVH JRGV ZHUH WKH SURVSHUV %XW ZH GHPDQG RWKHU WKLQJV EHVLGHV WKHVH RI
LGHDOVRIKLVFXOWXUH1RZKHKDVKLPVHOIDSSURDFKHGYHU\QHDU FLYLOL]DWLRQ DQG FXULRXVO\ HQRXJK ZH H[SHFW WR ILQG WKHP
WR UHDOL]LQJ WKLV LGHDO KH KDV QHDUO\ EHFRPH D JRG KLPVHOI %XW H[LVWLQJLQWKHVDPHFRXQWULHV$VLIZHZLVKHGWRUHSXGLDWHWKH
RQO\ LW LV WUXH LQ WKH ZD\ WKDW LGHDOV DUH XVXDOO\ UHDOL]HG LQ WKH ILUVW UHTXLVLWLRQ ZH PDGH ZH FRXQW LW DOVR DV SURRI RI D KLJK
JHQHUDO H[SHULHQFH RI KXPDQLW\ 1RW FRPSOHWHO\ LQ VRPH OHYHO RI FLYLOL]DWLRQ ZKHQ ZH VHH WKDW WKH LQGXVWU\ RI WKH
UHVSHFWVQRWDWDOOLQRWKHUVRQO\E\KDOYHV0DQKDVEHFRPHD LQKDELWDQWVLVDSSOLHGDVZHOOWRWKLQJVZKLFKDUHQRWLQWKHOHDVW
JRGE\PHDQVRIDUWLILFLDOOLPEVVRWRVSHDNTXLWHPDJQLILFHQW XVHIXO DQG RQ WKH FRQWUDU\ VHHP WR EH XVHOHVV H J ZKHQ WKH
ZKHQ HTXLSSHG ZLWK DOO KLV DFFHVVRU\ RUJDQV EXW WKH\ GR QRW SDUNV DQG JDUGHQV LQ D WRZQ ZKLFK DUH QHFHVVDU\ DV
JURZRQKLPDQGWKH\VWLOOJLYHKLPWURXEOHDWWLPHV+RZHYHU SOD\JURXQGV DQG DLUUHVHUYRLUV DOVR EHDU IORZHULQJ SODQWV RU
ZKHQ WKH ZLQGRZV RI GZHOOLQJV DUH DGRUQHG ZLWK IORZHUV :H LQJUDLQHG LWVHOI IURP WKH VWDUW DQG ZLWKRXW RSSRVLWLRQ LQWR DOO
VRRQ EHFRPH DZDUH WKDW WKH XVHOHVV WKLQJ ZKLFK ZH UHTXLUH RI KXPDQ DFWLYLWLHV DQG RQH PD\ ZHOO ZRQGHU WKDW WKLV KDV QRW
FLYLOL]DWLRQ LV EHDXW\ ZH H[SHFW D FXOWXUHG SHRSOH WR UHYHUH KDSSHQHG DQG WKDW RQ WKH FRQWUDU\ KXPDQ EHLQJV PDQLIHVW DQ
EHDXW\ ZKHUH LW LV IRXQG LQ QDWXUH DQG WR FUHDWH LW LQ WKHLU LQERUQ WHQGHQF\ WR QHJOLJHQFH LUUHJXODULW\ DQG
KDQGLZRUNVRIDUDVWKH\DUHDEOH%XWWKLVLVIDUIURPH[KDXVWLQJ XQWUXVWZRUWKLQHVV LQ WKHLU ZRUN DQG KDYH WR EH ODERULRXVO\
ZKDW ZH UHTXLUH RI FLYLOL]DWLRQ %HVLGHV ZH H[SHFW WR VHH WKH WUDLQHGWRLPLWDWHWKHH[DPSOHRIWKHLUFHOHVWLDOPRGHOV
VLJQV RI FOHDQOLQHVV DQG RUGHU :H GR QRW WKLQN KLJKO\ RI WKH
FXOWXUDO OHYHO RI DQ (QJOLVK FRXQWU\ WRZQ LQ WKH WLPH RI
6KDNHVSHDUH ZKHQ ZH UHDG WKDW WKHUH ZDV D WDOO GXQJKHDS LQ %HDXW\FOHDQOLQHVVDQGRUGHUFOHDUO\RFFXS\DSHFXOLDUSRVLWLRQ
IURQWRIKLVIDWKHUVKRXVHLQ6WUDWIRUGZHDUHLQGLJQDQWDQGFDOO DPRQJ WKH UHTXLUHPHQWV RI FLYLOL]DWLRQ 1R RQH ZLOO PDLQWDLQ
LW EDUEDURXV  ZKLFK LV WKH RSSRVLWH RI FLYLOL]HG ZKHQ ZH ILQG WKDW WKH\ DUH DV HVVHQWLDO WR OLIH DV WKH DFWLYLWLHV DLPHG DW
WKHSDWKVLQWKH:LHQHU:DOGOLWWHUHGZLWKSDSHU'LUWRIDQ\NLQG FRQWUROOLQJ WKH IRUFHV RI QDWXUH DQG DV RWKHU IDFWRUV ZKLFK ZH
VHHPV WR XV LQFRPSDWLEOH ZLWK FLYLOL]DWLRQ ZH H[WHQG RXU KDYH \HW WR PHQWLRQ DQG \HW QR RQH ZRXOG ZLOOLQJO\ UHOHJDWH
GHPDQGVIRUFOHDQOLQHVVWRWKHKXPDQERG\DOVRDQGDUHDPD]HG WKHPWRWKHEDFNJURXQGDVWULYLDOPDWWHUV%HDXW\LVDQLQVWDQFH
WRKHDUZKDWDQREMHFWLRQDEOHRGRXUHPDQDWHGIURPWKHSHUVRQ ZKLFK SODLQO\ VKRZV WKDW FXOWXUH LV QRW VLPSO\ XWLOLWDULDQ LQ LWV
RI WKH 5RL 6ROHLO ZH VKDNH RXU KHDGV ZKHQ ZH DUH VKRZQ WKH DLPV IRU WKH ODFN RI EHDXW\ LV D WKLQJ ZH FDQQRW WROHUDWH LQ
WLQ\ ZDVKEDVLQ RQ WKH ,VROD %HOOD ZKLFK 1DSROHRQ XVHG IRU KLV FLYLOL]DWLRQ 7KH XWLOLWDULDQ DGYDQWDJHV RI RUGHU DUH TXLWH
GDLO\DEOXWLRQV,QGHHGZHDUHQRWVXUSULVHGLIDQ\RQHHPSOR\V DSSDUHQWZLWKUHJDUGWRFOHDQOLQHVVZHKDYHWRUHPHPEHUWKDWLW
WKHXVHRIVRDSDVDGLUHFWPHDVXUHRIFLYLOL]DWLRQ,WLVWKHVDPH LV UHTXLUHG RI XV E\ K\JLHQH DQG ZH PD\ VXUPLVH WKDW HYHQ
ZLWK RUGHU ZKLFK OLNH FOHDQOLQHVV UHODWHV HQWLUHO\ WR PDQV EHIRUHWKHGD\VRIVFLHQWLILFSURSK\OD[LVWKHFRQQHFWLRQEHWZHHQ
KDQGLZRUN%XWZKHUHDVZHFDQQRWH[SHFWFOHDQOLQHVVLQQDWXUH WKH WZR ZDV QRW DOWRJHWKHU XQVXVSHFWHG E\ PDQNLQG %XW WKHVH
RUGHU KDV RQ WKH FRQWUDU\ EHHQ LPLWDWHG IURP QDWXUH PDQV DLPVDQGHQGHDYRXUVRIFXOWXUHDUHQRWHQWLUHO\WREHH[SODLQHG
REVHUYDWLRQV RI WKH JUHDW DVWURQRPLFDO SHULRGLFLWLHV QRW RQO\ RQ XWLOLWDULDQ OLQHV WKHUH PXVW EH VRPHWKLQJ HOVH DW ZRUN
IXUQLVKHGKLPZLWKDPRGHOEXWIRUPHGWKHJURXQGSODQRIKLV EHVLGHV
ILUVW DWWHPSWV WR LQWURGXFH RUGHU LQWR KLV RZQ OLIH 2UGHU LV D
NLQG RI UHSHWLWLRQFRPSXOVLRQ E\ ZKLFK LW LV RUGDLQHG RQFH IRU
DOOZKHQZKHUHDQGKRZDWKLQJVKDOOEHGRQHVRWKDWRQHYHU\ $FFRUGLQJ WR JHQHUDO RSLQLRQ KRZHYHU WKHUHLV RQH IHDWXUH RI
VLPLODU RFFDVLRQ GRXEW DQG KHVLWDWLRQ VKDOO EH DYRLGHG 7KH FXOWXUH ZKLFK FKDUDFWHUL]HV LW EHWWHU WKDQ DQ\ RWKHU DQG WKDW LV
EHQHILWVRIRUGHUDUHLQFRQWHVWDEOHLWHQDEOHVXVWRXVHVSDFHDQG WKH YDOXH LW VHWV XSRQ WKH KLJKHU PHQWDO DFWLYLWLHVLQWHOOHFWXDO
WLPH WR WKH EHVW DGYDQWDJH ZKLOH VDYLQJ H[SHQGLWXUH RI PHQWDO VFLHQWLILFDQGDHVWKHWLFDFKLHYHPHQWWKHOHDGLQJSDUWLWFRQFHGHV
HQHUJ\ 2QH ZRXOG EH MXVWLILHG LQ H[SHFWLQJ WKDW LW ZRXOG KDYH WR LGHDV LQ KXPDQ OLIH )LUVW DQG IRUHPRVW DPRQJ WKHVH LGHDV
FRPHWKHUHOLJLRXVV\VWHPVZLWKWKHLUFRPSOLFDWHGHYROXWLRQRQ
ZKLFK , KDYH HOVHZKHUH HQGHDYRXUHG WR WKURZ D OLJKW QH[W WR VSHFLILFDOO\ FXOWXUDO KHUH 3HUKDSV RQH PLJKW EHJLQ ZLWK WKH
WKHP FRPH SKLORVRSKLFDO VSHFXODWLRQV DQG ODVW WKH LGHDOV PDQ VWDWHPHQWWKDWWKHILUVWDWWHPSWHYHUPDGHWRUHJXODWHWKHVHVRFLDO
KDV IRUPHG KLV FRQFHSWLRQV RI WKH SHUIHFWLRQ SRVVLEOH LQ DQ UHODWLRQV DOUHDG\ FRQWDLQHG WKH HVVHQWLDO HOHPHQW RI FLYLOL]DWLRQ
LQGLYLGXDO LQ D SHRSOH LQ KXPDQLW\ DV D ZKROH DQG WKH +DG QR VXFK DWWHPSW EHHQ PDGH WKHVH UHODWLRQV ZRXOG EH
GHPDQGV KH PDNHV RQ WKH EDVLV RI WKHVH FRQFHSWLRQV 7KHVH VXEMHFW WR WKH ZLOOV RI LQGLYLGXDOV WKDW LV WR VD\ WKH PDQ ZKR
FUHDWLRQVRIKLVPLQGDUHQRWLQGHSHQGHQWRIHDFKRWKHURQWKH ZDVSK\VLFDOO\VWURQJHVWZRXOGGHFLGHWKLQJVLQDFFRUGDQFHZLWK
FRQWUDU\ WKH\ DUH FORVHO\ LQWHUZRYHQ DQG WKLV FRPSOLFDWHV WKH KLV RZQ LQWHUHVWV DQG GHVLUHV 7KH VLWXDWLRQ ZRXOG UHPDLQ WKH
DWWHPSW WR GHVFULEH WKHP DV ZHOO DV WKDW WR WUDFH WKHLU VDPHHYHQWKRXJKWKLVVWURQJPDQVKRXOGLQKLVWXUQPHHWZLWK
SV\FKRORJLFDO GHULYDWLRQ ,I ZH DVVXPH DV D JHQHUDO K\SRWKHVLV DQRWKHU ZKR ZDV VWURQJHU WKDQ KH +XPDQ OLIH LQ FRPPXQLWLHV
WKDW WKH IRUFH EHKLQG DOO KXPDQ DFWLYLWLHV LV D VWULYLQJ WRZDUGV RQO\EHFRPHVSRVVLEOHZKHQDQXPEHURIPHQXQLWHWRJHWKHULQ
WKH WZR FRQYHUJHQW DLPV RI SURILW DQG SOHDVXUH ZH PXVW WKHQ VWUHQJWK VXSHULRU WR DQ\ VLQJOH LQGLYLGXDO DQG UHPDLQ XQLWHG
DFNQRZOHGJHWKLVDVYDOLGDOVRIRUWKHVHRWKHUPDQLIHVWDWLRQVRI DJDLQVWDOOVLQJOHLQGLYLGXDOV7KHVWUHQJWKRIWKLVXQLWHGERG\LV
FXOWXUH DOWKRXJK LW FDQ EH SODLQO\ UHFRJQL]HG DV WUXH RQO\ LQ WKHQ RSSRVHG DV ULJKW DJDLQVW WKH VWUHQJWK RI DQ\ LQGLYLGXDO
UHVSHFW RI VFLHQFH DQG DUW ,W FDQQRW EH GRXEWHG KRZHYHU WKDW ZKLFK LV FRQGHPQHG DV EUXWH IRUFH 7KLV VXEVWLWXWLRQ RI WKH
WKHUHPDLQGHUWRRFRUUHVSRQGWRVRPHSRZHUIXOQHHGLQKXPDQ SRZHURIDXQLWHGQXPEHUIRUWKHSRZHURIDVLQJOHPDQLVWKH
EHLQJVSHUKDSVWRRQHZKLFKGHYHORSVIXOO\RQO\LQDPLQRULW\RI GHFLVLYH VWHS WRZDUGV FLYLOL]DWLRQ 7KH HVVHQFH RI LW OLHV LQ WKH
SHRSOH 1RU PD\ ZH DOORZ RXUVHOYHV WR EH PLVOHG E\ RXU RZQ FLUFXPVWDQFHWKDWWKHPHPEHUVRIWKHFRPPXQLW\KDYHUHVWULFWHG
MXGJPHQWV FRQFHUQLQJ WKH YDOXH RI DQ\ RI WKHVH UHOLJLRXV RU WKHLU SRVVLELOLWLHV RI JUDWLILFDWLRQ ZKHUHDV WKH LQGLYLGXDO
SKLORVRSKLFDOV\VWHPVRURIWKHVHLGHDOVZKHWKHUZHORRNXSRQ UHFRJQL]HG QR VXFK UHVWULFWLRQV 7KH ILUVW UHTXLVLWH RI FXOWXUH
WKHPDVWKHKLJKHVWDFKLHYHPHQWRIWKHKXPDQPLQGRUZKHWKHU WKHUHIRUH LV MXVWLFH WKDW LV WKH DVVXUDQFH WKDW D ODZ RQFH PDGH
ZHGHSORUHWKHPDVIDOODFLHVRQHPXVWDFNQRZOHGJHWKDWZKHUH ZLOO QRW EH EURNHQ LQ IDYRXU RI DQ\ LQGLYLGXDO 7KLV LPSOLHV
WKH\ H[LVW DQG HVSHFLDOO\ ZKHUH WKH\ DUH LQ WKH DVFHQGDQW WKH\ QRWKLQJ DERXW WKH HWKLFDO YDOXH RI DQ\ VXFK ODZ 7KH IXUWKHU
WHVWLI\WRDKLJKOHYHORIFLYLOL]DWLRQ FRXUVHRIFXOWXUDOGHYHORSPHQWVHHPVWRWHQGWRZDUGVHQVXULQJ
WKDW WKH ODZ VKDOO QR ORQJHU UHSUHVHQW WKH ZLOO RI DQ\ VPDOO
:HQRZKDYHWRFRQVLGHUWKHODVWDQGFHUWDLQO\E\QRPHDQVWKH ERG\FDVWH WULEH VHFWLRQ RI WKH SRSXODWLRQZKLFK PD\ EHKDYH
OHDVWLPSRUWDQWRIWKHFRPSRQHQWVRIFXOWXUHQDPHO\WKHZD\V OLNH D SUHGDWRU\ LQGLYLGXDO WRZDUGV RWKHU VXFK JURXSV SHUKDSV
LQZKLFKVRFLDOUHODWLRQVWKHUHODWLRQVRIRQHPDQWRDQRWKHUDUH FRQWDLQLQJ ODUJHU QXPEHUV 7KH HQGUHVXOW ZRXOG EH D VWDWH RI
UHJXODWHGDOOWKDWKDVWRGRZLWKKLPDVDQHLJKERXUDVRXUFHRI ODZ WR ZKLFK DOOWKDW LV DOO ZKR DUH FDSDEOH RI XQLWLQJKDYH
KHOS D VH[XDO REMHFW WR RWKHUV D PHPEHU RI D IDPLO\ RU RI D FRQWULEXWHGE\PDNLQJVRPHVDFULILFHRIWKHLURZQGHVLUHVDQG
VWDWH ,W LV HVSHFLDOO\ GLIILFXOW LQ WKLV PDWWHU WR UHPDLQ XQELDVHG ZKLFKOHDYHVQRQHDJDLQZLWKWKHVDPHH[FHSWLRQDWWKHPHUF\RI
E\ DQ\ LGHDO VWDQGDUGV DQG WR DVFHUWDLQ H[DFWO\ ZKDW LV EUXWHIRUFH
RXUVHOYHVDJDLQVWDFFHSWLQJWKHPLVFRQFHSWLRQWKDWFLYLOL]DWLRQLV
7KH OLEHUW\ RI WKH LQGLYLGXDO LV QRW D EHQHILW RI FXOWXUH ,W ZDV V\QRQ\PRXVZLWKEHFRPLQJSHUIHFWLVWKHSDWKE\ZKLFKPDQLV
JUHDWHVW EHIRUH DQ\ FXOWXUH WKRXJK LQGHHG LW KDG OLWWOH YDOXH DW RUGDLQHG WR UHDFK SHUIHFWLRQ %XW QRZ D FHUWDLQ SRLQW RI YLHZ
WKDW WLPH EHFDXVH WKH LQGLYLGXDO ZDV KDUGO\ LQ D SRVLWLRQ WR SUHVVHV IRU FRQVLGHUDWLRQ LW ZLOO OHDG SHUKDSV LQ DQRWKHU
GHIHQG LW /LEHUW\ KDV XQGHUJRQH UHVWULFWLRQV WKURXJK WKH GLUHFWLRQ 7KH HYROXWLRQ RI FXOWXUH VHHPV WR XV D SHFXOLDU NLQG
HYROXWLRQ RI FLYLOL]DWLRQ DQG MXVWLFH GHPDQGV WKDW WKHVH RI SURFHVV SDVVLQJ RYHU KXPDQLW\ RI ZKLFK VHYHUDO DVSHFWV
UHVWULFWLRQVVKDOODSSO\WRDOO7KHGHVLUHIRUIUHHGRPWKDWPDNHV VWULNHXVDVIDPLOLDU:HFDQGHVFULEHWKLVSURFHVVLQWHUPVRIWKH
LWVHOI IHOW LQ D KXPDQ FRPPXQLW\ PD\ EH D UHYROW DJDLQVW VRPH PRGLILFDWLRQV LW HIIHFWV RQ WKH NQRZQ KXPDQ LQVWLQFWXDO
H[LVWLQJ LQMXVWLFH DQG VR PD\ SURYH IDYRXUDEOH WR D IXUWKHU GLVSRVLWLRQVZKLFKLWLVWKHHFRQRPLFWDVNRIRXUOLYHVWRVDWLVI\
GHYHORSPHQWRIFLYLOL]DWLRQDQGUHPDLQFRPSDWLEOHZLWKLW%XWLW 6RPH RI WKHVH LQVWLQFWV EHFRPH DEVRUEHG DV LW ZHUH VR WKDW
PD\DOVRKDYHLWVRULJLQLQWKHSULPLWLYHURRWVRIWKHSHUVRQDOLW\ VRPHWKLQJ DSSHDUV LQ SODFH RI WKHP ZKLFK LQ DQ LQGLYLGXDO ZH
VWLOOXQIHWWHUHGE\FLYLOL]LQJLQIOXHQFHVDQGVREHFRPHDVRXUFH FDOO D FKDUDFWHUWUDLW 7KH PRVW UHPDUNDEOH H[DPSOH RI WKLV
RI DQWDJRQLVP WR FXOWXUH 7KXV WKH FU\ IRU IUHHGRP LV GLUHFWHG SURFHVVLVIRXQGLQUHVSHFWRIWKHDQDOHURWLVPRI\RXQJKXPDQ
HLWKHU DJDLQVW SDUWLFXODU IRUPV RU GHPDQGV RI FXOWXUH RU HOVH EHLQJV 7KHLU SULPDU\ LQWHUHVW LQ WKH H[FUHWRU\ IXQFWLRQ LWV
DJDLQVW FXOWXUH LWVHOI ,W GRHV QRW VHHP DV LI PDQ FRXOG EH RUJDQV DQG SURGXFWV LV FKDQJHG LQ WKH FRXUVH RI WKHLU JURZWK
EURXJKWE\DQ\VRUWRILQIOXHQFHWRFKDQJHKLVQDWXUHLQWRWKDWRI LQWRDJURXSRIWUDLWVWKDWZHNQRZZHOOWKULIWLQHVVRUGHUOLQHVV
WKH DQWV KH ZLOO DOZD\V RQH LPDJLQHV GHIHQG KLV FODLP WR DQG FOHDQOLQHVVYDOXDEOH DQG ZHOFRPH TXDOLWLHV LQ WKHPVHOYHV
LQGLYLGXDOIUHHGRPDJDLQVWWKHZLOORIWKHPXOWLWXGH$JUHDWSDUW ZKLFKKRZHYHUPD\EHLQWHQVLILHGWLOOWKH\YLVLEO\GRPLQDWHWKH
RI WKH VWUXJJOHV RI PDQNLQG FHQWUHV URXQG WKH VLQJOH WDVN RI SHUVRQDOLW\ DQG SURGXFH ZKDW ZH FDOO WKH DQDO FKDUDFWHU +RZ
ILQGLQJ VRPH H[SHGLHQW LH VDWLVI\LQJ  VROXWLRQ EHWZHHQ WKHVH WKLV KDSSHQV ZH GR QRW NQRZ EXW WKHUH LV QR GRXEW DERXW WKH
LQGLYLGXDOFODLPVDQGWKRVHRIWKHFLYLOL]HGFRPPXQLW\LWLVRQH DFFXUDF\RIWKLVFRQFOXVLRQ
RI WKH SUREOHPV RI PDQV IDWH ZKHWKHU WKLV VROXWLRQ FDQ EH
DUULYHG DW LQ VRPH SDUWLFXODU IRUP RI FXOWXUH RU ZKHWKHU WKH 1RZZHKDYHVHHQWKDWRUGHUDQGFOHDQOLQHVVDUHHVVHQWLDOO\
FRQIOLFWZLOOSURYHLUUHFRQFLODEOH FXOWXUDOGHPDQGVDOWKRXJKWKHQHFHVVLW\RIWKHPIRUVXUYLYDOLV
QRW SDUWLFXODUO\ DSSDUHQW DQ\ PRUH WKDQ WKHLU VXLWDELOLW\ DV
VRXUFHVRISOHDVXUH$WWKLVSRLQWZHPXVWEHVWUXFNIRUWKHILUVW
:H KDYH REWDLQHG D FOHDU LPSUHVVLRQ RI WKH JHQHUDO SLFWXUH WLPH ZLWK WKH VLPLODULW\ EHWZHHQ WKH SURFHVV RI FXOWXUDO
SUHVHQWHG E\ FXOWXUH WKURXJK DGRSWLQJ WKH FRPPRQ YLHZ DV WR GHYHORSPHQW DQG WKDW RI WKH OLELGLQDO GHYHORSPHQW LQ DQ
ZKLFK DVSHFWV RI KXPDQ OLIH DUH WR EH FDOOHG FXOWXUDO EXW LW LV LQGLYLGXDO 2WKHU LQVWLQFWV KDYH WR EH LQGXFHG WR FKDQJH WKH
WUXHWKDWVRIDUZHKDYHGLVFRYHUHGQRWKLQJWKDWLVQRWFRPPRQ FRQGLWLRQV RI WKHLU JUDWLILFDWLRQ WR ILQG LW DORQJ RWKHU SDWKV D
NQRZOHGJH :H KDYH KRZHYHU DW WKH VDPH WLPH JXDUGHG SURFHVVZKLFKLVXVXDOO\LGHQWLFDOZLWKZKDWZHNQRZVRZHOODV
VXEOLPDWLRQ RIWKHDLPRIDQLQVWLQFW EXWZKLFKFDQVRPHWLPHV FRPSDUDEOH WR WKH QRUPDO JURZWK RI DQ LQGLYLGXDO WR PDWXULW\
EH GLIIHUHQWLDWHG IURP WKLV 6XEOLPDWLRQ RI LQVWLQFW LV DQ ZH PXVW FOHDUO\ DWWDFN DQRWKHU SUREOHP DQG SXW WKH TXHVWLRQ
HVSHFLDOO\FRQVSLFXRXVIHDWXUHRIFXOWXUDOHYROXWLRQWKLVLWLVWKDW :KDWDUHWKHLQIOXHQFHVWRZKLFKWKHHYROXWLRQRIFXOWXUHRZHV
PDNHV LW SRVVLEOH IRU WKH KLJKHU PHQWDO RSHUDWLRQV VFLHQWLILF LWVRULJLQKRZGLGLWDULVHDQGZKDWGHWHUPLQHGLWVFRXUVH"
DUWLVWLF LGHRORJLFDO DFWLYLWLHV WR SOD\ VXFK DQ LPSRUWDQW SDUW LQ
FLYLOL]HG OLIH ,I RQH ZHUH WR \LHOG WR D ILUVW LPSUHVVLRQ RQH
ZRXOG EH WHPSWHG WR VD\ WKDW VXEOLPDWLRQ LV D IDWH ZKLFK KDV
EHHQ IRUFHG XSRQ LQVWLQFWV E\ FXOWXUH DORQH %XW LW LV EHWWHU WR
UHIOHFWRYHUWKLVDZKLOHORQJHU7KLUGO\DQGODVWO\DQGWKLVVHHPV
PRVW LPSRUWDQW RI DOO LW LV LPSRVVLEOH WR LJQRUH WKH H[WHQW WR
ZKLFK FLYLOL]DWLRQ LV EXLOW XS RQ UHQXQFLDWLRQ RI LQVWLQFWXDO
JUDWLILFDWLRQV WKH GHJUHH WR ZKLFK WKH H[LVWHQFH RI FLYLOL]DWLRQ
SUHVXSSRVHV WKH QRQJUDWLILFDWLRQ VXSSUHVVLRQ UHSUHVVLRQ RU
VRPHWKLQJHOVH" RISRZHUIXOLQVWLQFWXDOXUJHQFLHV7KLVFXOWXUDO
SULYDWLRQ GRPLQDWHV WKH ZKROH ILHOG RI VRFLDO UHODWLRQV EHWZHHQ
KXPDQ EHLQJV ZH NQRZ DOUHDG\ WKDW LW LV WKH FDXVH RI WKH
DQWDJRQLVPDJDLQVWZKLFKDOOFLYLOL]DWLRQKDVWRILJKW,WVHWVKDUG
WDVNVIRURXUVFLHQWLILFZRUNWRRZHKDYHDJUHDWGHDOWRH[SODLQ
KHUH,WLVQRWHDV\WRXQGHUVWDQGKRZLWFDQEHFRPHSRVVLEOHWR
ZLWKKROG VDWLVIDFWLRQ IURP DQ LQVWLQFW 1RU LV LW E\ DQ\ PHDQV
ZLWKRXW ULVN WR GR VR LI WKH GHSULYDWLRQ LV QRW PDGH JRRG
HFRQRPLFDOO\ RQH PD\ EH FHUWDLQ RI SURGXFLQJ VHULRXV
GLVRUGHUV

&I&KDUDFWHUDQG$QDO(URWLVP  &ROOHFWHG3DSHUV


,,DOVRQXPHURXVFRQWULEXWLRQVWRWKHVXEMHFWE\(UQHVW
-RQHVDQGRWKHUV

%XW QRZ LI ZH ZLVK WR NQRZ ZKDW XVH LW LV WR XV WR KDYH
UHFRJQL]HG WKH HYROXWLRQ RI FXOWXUH DV D VSHFLDO SURFHVV
OHG IURP WKLV IDPLO\OLIH WR WKH VXFFHHGLQJ SKDVH RI FRPPXQDO
H[LVWHQFH LQ WKH IRUP RI D EDQG RI EURWKHUV %\ RYHUSRZHULQJ
WKH IDWKHU WKH VRQV KDG GLVFRYHUHG WKDW VHYHUDO PHQ XQLWHG FDQ
EH VWURQJHU WKDQ D VLQJOH PDQ 7KH WRWHPLF VWDJH RI FXOWXUH LV
,9 IRXQGHG XSRQ WKH UHVWULFWLRQV WKDW WKH EDQG ZHUH REOLJHG WR
LPSRVH RQ RQH DQRWKHU LQ RUGHU WR PDLQWDLQ WKH QHZ V\VWHP
7KHVH WDERRV ZHUH WKH ILUVW ULJKW RU ODZ 7KH OLIH RI KXPDQ
7+,6WDVNVHHPVWRRELJDRQHRQHPD\ZHOOFRQIHVVRQHVHOI
EHLQJVLQFRPPRQWKHUHIRUHKDGDWZRIROGIRXQGDWLRQLHWKH
GLIILGHQW+HUHIROORZVZKDWOLWWOH,KDYHEHHQDEOHWRHOLFLWDERXW
FRPSXOVLRQ WR ZRUN FUHDWHG E\ H[WHUQDO QHFHVVLW\ DQG WKH
LW
SRZHU RI ORYH FDXVLQJ WKH PDOH WR ZLVK WR NHHS KLV VH[XDO
REMHFWWKHIHPDOHQHDUKLPDQGWKHIHPDOHWRNHHSQHDUKHUWKDW
2QFH SULPLWLYH PDQ KDG PDGH WKH GLVFRYHU\ WKDW LW OD\ LQ KLV SDUWRIKHUVHOIZKLFKKDVEHFRPHGHWDFKHGIURPKHUKHUFKLOG
RZQ KDQGVVSHDNLQJ OLWHUDOO\ WR LPSURYH KLV ORW RQ HDUWK E\ (URV DQG $QDQNH ZHUH WKH SDUHQWV RI KXPDQ FXOWXUH WRR 7KH
ZRUNLQJ LW FDQQRW KDYH EHHQ D PDWWHU RI LQGLIIHUHQFH WR KLP ILUVWUHVXOWRIFXOWXUHZDVWKDWDODUJHUQXPEHURIKXPDQEHLQJV
ZKHWKHU DQRWKHU PDQ ZRUNHG ZLWK KLP RU DJDLQVW KLP 7KH FRXOG WKHQ OLYH WRJHWKHU LQ FRPPRQ $QG VLQFH WKH WZR JUHDW
RWKHU DFTXLUHG WKH YDOXH RI D IHOORZZRUNHU DQG LW ZDV SRZHUVZHUHKHUHFRRSHUDWLQJWRJHWKHURQHPLJKWKDYHH[SHFWHG
DGYDQWDJHRXV WR OLYH ZLWK KLP (YHQ HDUOLHU LQ KLV DSHOLNH WKDW IXUWKHU FXOWXUDO HYROXWLRQ ZRXOG KDYH SURFHHGHG VPRRWKO\
SUHKLVWRU\ PDQ KDG DGRSWHG WKH KDELW RI IRUPLQJ IDPLOLHV KLV WRZDUGVHYHQJUHDWHUPDVWHU\RYHUWKHH[WHUQDOZRUOGDVZHOODV
ILUVWKHOSHUVZHUHSUREDEO\WKHPHPEHUVRIKLVIDPLO\2QHPD\ WRZDUGVJUHDWHUH[WHQVLRQLQWKHQXPEHUVRIPHQVKDULQJWKHOLIH
VXSSRVH WKDW WKH IRXQGLQJ RI IDPLOLHV ZDV LQ VRPH ZD\ LQFRPPRQ1RULVLWHDV\WRXQGHUVWDQGKRZWKLVFXOWXUHFDQEH
FRQQHFWHGZLWKWKHSHULRGZKHQWKHQHHGIRUJHQLWDOVDWLVIDFWLRQ IHOWDVDQ\WKLQJEXWVDWLVI\LQJE\WKRVHZKRSDUWDNHRILW
QR ORQJHU DSSHDULQJ OLNH DQ RFFDVLRQDO JXHVW ZKR WXUQV XS
VXGGHQO\DQGWKHQYDQLVKHVZLWKRXWOHWWLQJRQHKHDUDQ\WKLQJRI  7KH RUJDQLF SHULRGLFLW\ RI WKH VH[XDO SURFHVV KDV
KLP IRU ORQJ LQWHUYDOV KDG VHWWOHG GRZQ ZLWK HDFK PDQ OLNH D SHUVLVWHGLWLVWUXHEXWLWVHIIHFWRQPHQWDOVH[XDOH[FLWDWLRQ
SHUPDQHQW ORGJHU :KHQ WKLV KDSSHQHG WKH PDOH DFTXLUHG D KDV
PRWLYHIRUNHHSLQJWKHIHPDOHRUUDWKHUKLVVH[XDOREMHFWVQHDU EHHQ DOPRVW UHYHUVHG 7KLV FKDQJH LV FRQQHFWHG SULPDULO\
KLPZKLOHWKHIHPDOHZKRZDQWHGQRWWREHVHSDUDWHGIURPKHU ZLWKWKHGLPLQLVKLQJLPSRUWDQFHRIWKHROIDFWRU\VWLPXOL
KHOSOHVV\RXQJLQWKHLULQWHUHVWVWRRKDGWRVWD\E\WKHVWURQJHU E\ PHDQV RI ZKLFK WKH PHQVWUXDO SURFHVV SURGXFHG VH[XDO
PDOH,QWKLVSULPLWLYHIDPLO\RQHHVVHQWLDOIHDWXUHRIFXOWXUH H[FLWHPHQWLQWKHPLQGRIWKHPDOH7KHLUIXQFWLRQZDV
LVODFNLQJWKHZLOORIWKHIDWKHUWKHKHDGRILWZDVXQIHWWHUHG, WDNHQ RYHU E\ YLVXDO VWLPXOL ZKLFK FRXOG RSHUDWH
KDYH HQGHDYRXUHG LQ 7RWHP DQG 7DERR WR VKRZ KRZ WKH ZD\ SHUPDQHQWO\ LQVWHDG RI LQWHUPLWWHQWO\ OLNH WKH ROIDFWRU\
RQHV7KH DSSUHFLDWHG 7KH LPSXOVH WRZDUGV FOHDQOLQHVV RULJLQDWHV LQ
WDERRRIPHQVWUXDWLRQKDVLWVRULJLQLQWKLVRUJDQLFUHSUHVVLRQ WKHVWULYLQJWRJHWULGRIH[FUHWLRQVZKLFKKDYHEHFRPH
ZKLFKDFWHGDVDEDUULHUDJDLQVWDSKDVHRI XQSOHDVDQW WR WKH VHQVHSHUFHSWLRQV :H NQRZ WKDW WKLQJV
GHYHORSPHQW WKDW KDG EHHQ VXUSDVVHG DOO LWV RWKHU DUHGLIIHUHQWLQWKHQXUVHU\([FUHWDDURXVHQRDYHUVLRQ
PRWLYDWLRQV DUH SUREDEO\ RI D VHFRQGDU\ QDWXUH &I & ' LQ FKLOGUHQ WKH\ VHHP SUHFLRXV WR WKHP DV EHLQJ SDUWV RI
'DO\ WKHLURZQERGLHVZKLFKKDYHEHHQGHWDFKHGIURPWKHP
+LQGXP\WKRORJLH XQG .DVWUDWLRQVNRPSOH[  ,PDJR 9RO ;,,, 7KH WUDLQLQJ RI FKLOGUHQ LV YHU\ HQHUJHWLF LQ WKLV SDUWLFXODU
 7KLVSURFHVVLVUHSHDWHGRQDGLIIHUHQWOHYHO LWVREMHFWLVWRH[SHGLWHWKHGHYHORSPHQWWKDWOLHVDKHDG
ZKHQ WKH JRGV RI D IRUHJRQH FXOWXUDO HSRFK DUH FKDQJHG RI WKHP DFFRUGLQJ WR ZKLFK WKH H[FUHWD DUH WR EHFRPH
LQWRGHPRQVLQWKHQH[W7KHGLPLQXWLRQLQLPSRUWDQFHRI ZRUWKOHVVGLVJXVWLQJKRUULEOHDQGGHVSLFDEOHWRWKHP6XFK
ROIDFWRU\ VWLPXOL VHHPV LWVHOI KRZHYHU WR EH D FRQVHTXHQFH D UHYHUVDO RI YDOXHV ZRXOG EH DOPRVW LPSRVVLEOH WR EULQJ
RIPDQVHUHFWLQJKLPVHOIIURPWKHHDUWKRIKLV DERXWZHUHLWQRWWKDWWKHVHVXEVWDQFHVH[SHOOHGIURPWKH
DGRSWLRQ RI DQ XSULJKW JDLW ZKLFK PDGH KLV JHQLWDOV WKDW ERG\ DUH GHVWLQHG E\ WKHLU VWURQJ RGRXUV WR VKDUH WKH IDWH
EHIRUHKDGEHHQFRYHUHGYLVLEOHDQGLQQHHGRISURWHFWLRQ WKDWRYHUWRRNWKHROIDFWRU\VWLPXOLDIWHUPDQKDGHUHFWHG
DQG VR HYRNHG IHHOLQJV RI VKDPH 0DQV HUHFW SRVWXUH KLPVHOI IURP WKH JURXQG $QDO HURWLVP WKHUHIRUH LV IURP
WKHUHIRUHZRXOGUHSUHVHQWWKHEHJLQQLQJRIWKHPRPHQWRXV WKHILUVWVXEMHFWHGWRWKHRUJDQLFUHSUHVVLRQZKLFKRSHQHG
SURFHVV RI FXOWXUDO HYROXWLRQ 7KH FKDLQ RI GHYHORSPHQW XS WKH ZD\ WR FXOWXUH 7KH VRFLDO IDFWRU ZKLFK KDV EHHQ
ZRXOGUXQIURPWKLVRQZDUGWKURXJKWKHGLPLQXWLRQLQ DFWLYHLQWKHIXUWKHUPRGLILFDWLRQVRIDQDOHURWLVPFRPHV
WKH LPSRUWDQFH RI ROIDFWRU\ VWLPXOL DQG WKH LVRODWLRQ RI LQWRSOD\ZLWKWKHIDFWWKDWLQVSLWHRIDOOPDQVHYROXWLRQDU\
ZRPHQDWWKHLUSHULRGVWRDWLPHZKHQYLVXDOVWLPXOL SURJUHVVWKHVPHOORIKLVRZQH[FUHWLRQVLVVFDUFHO\
EHFDPH SDUDPRXQW WKH JHQLWDOV EHFDPH YLVLEOH IXUWKHU WLOO GLVDJUHHDEOH WR KLP \HW EXW VR IDU RQO\ WKDW RI WKH
VH[XDOH[FLWDWLRQEHFDPHFRQVWDQWDQGWKHIDPLO\ZDV HYDFXDWLRQV RI RWKHUV 7KH PDQ ZKR LV QRW FOHDQ L H ZKR
IRXQGHG DQG VR WR WKH WKUHVKROG RI KXPDQ FXOWXUH 7KLV LV GRHV
RQO\DWKHRUHWLFDOVSHFXODWLRQEXWLWLVLPSRUWDQWHQRXJK QRWHOLPLQDWHKLVH[FUHWLRQVWKHUHIRUHRIIHQGVRWKHUVVKRZV
WR EH ZRUWK FKHFNLQJ FDUHIXOO\ E\ WKH FRQGLWLRQV REWDLQLQJ QRFRQVLGHUDWLRQIRUWKHPDIDFWZKLFKLVH[HPSOLILHG
DPRQJWKHDQLPDOVFORVHO\DOOLHGWRPDQ LQ WKH FRPPRQHVW DQG PRVW IRUFLEOH WHUPV RI DEXVH ,W
ZRXOGEHLQFRPSUHKHQVLEOHWRRWKDWPDQVKRXOGXVHDVDQ
7KHUHLVDQXQPLVWDNDEOHVRFLDOIDFWRUDWZRUNLQWKHLPSXOVH DEXVLYH HSLWKHW WKH QDPH RI KLV PRVW IDLWKIXO IULHQG LQ WKH
RIFLYLOL]DWLRQWRZDUGVFOHDQOLQHVVZKLFKKDVEHHQ DQLPDOZRUOGLIGRJVGLGQRWLQFXUWKHFRQWHPSWRIPHQ
VXEVHTXHQWO\ MXVWLILHG E\ FRQVLGHUDWLRQV RI K\JLHQH EXW KDG WKURXJK WZR RI WKHLU FKDUDFWHULVWLFV L H WKDW WKH\ DUH
QHYHUWKHOHVVIRXQGH[SUHVVLRQEHIRUHWKH\ZHUH FUHDWXUHVRIVPHOODQGKDYHQRKRUURURIH[FUHPHQWDQG
VHFRQGO\ WKDW WKH\ DUH QRW DVKDPHG RI WKHLU VH[XDO WKHPVHOYHVE\WKLVSURFHVVDQXQFKDQJHDEOHXQGHYLDWLQJWHQGHU
IXQFWLRQV DWWLWXGHKDVOLWWOHVXSHUILFLDOOLNHQHVVWRWKHVWRUP\YLFLVVLWXGHVRI
JHQLWDOORYHIURPZKLFKLWLVQHYHUWKHOHVVGHULYHG,WVHHPVWKDW
%HIRUH ZH JR RQ WR HQTXLUH ZKHUH WKH GLVWXUEDQFHV LQ LW DULVH 6DLQW )UDQFLV RI $VVLVL PD\ KDYH FDUULHG WKLV PHWKRG RI XVLQJ
ZHZLOOOHWRXUVHOYHVGLJUHVVIURPWKHSRLQWWKDWORYHZDVRQHRI ORYHWRSURGXFHDQLQQHUIHHOLQJRIKDSSLQHVVDVIDUDVDQ\RQH
WKH IRXQGHUV RI FXOWXUH DQG VR ILOO D JDS OHIW LQ RXU SUHYLRXV ZKDW ZH DUH WKXV FKDUDFWHUL]LQJ DV RQH RI WKH SURFHGXUHV E\
GLVFXVVLRQ :H VDLG WKDW PDQ KDYLQJ IRXQG E\ H[SHULHQFH WKDW ZKLFKWKHSOHDVXUHSULQFLSOHIXOILOVLWVHOIKDVLQIDFWEHHQOLQNHG
VH[XDO JHQLWDO  ORYH DIIRUGHG KLP KLV JUHDWHVW JUDWLILFDWLRQ VR XS LQ PDQ\ ZD\V ZLWK UHOLJLRQ WKH FRQQHFWLRQ EHWZHHQ WKHP
WKDWLWEHFDPHLQHIIHFWDSURWRW\SHRIDOOKDSSLQHVVWRKLPPXVW PD\ OLH LQ WKRVH UHPRWH IDVWQHVVHV RI WKH PLQG ZKHUH WKH
KDYHEHHQWKHUHE\LPSHOOHGWRVHHNKLVKDSSLQHVVIXUWKHUDORQJ GLVWLQFWLRQV EHWZHHQ WKH HJR DQG REMHFWV DQG EHWZHHQ WKH
WKH SDWK RI VH[XDO UHODWLRQV WR PDNH JHQLWDO HURWLVP WKH FHQWUDO YDULRXV REMHFWV EHFRPH PDWWHUV RI LQGLIIHUHQFH )URP RQH
SRLQWRIKLVOLIH:HZHQWRQWRVD\WKDWLQVRGRLQJKHEHFRPHV HWKLFDO VWDQGSRLQW WKH GHHSHU PRWLYDWLRQ RI ZKLFK ZLOO ODWHU
WR D YHU\ GDQJHURXV GHJUHH GHSHQGHQW RQ D SDUW RI WKH RXWHU EHFRPH FOHDU WR XV WKLV LQFOLQDWLRQ WRZDUGV DQ DOOHPEUDFLQJ
ZRUOGQDPHO\RQKLVFKRVHQORYHREMHFWDQGWKLVH[SRVHVKLP ORYHRIRWKHUVDQGRIWKHZRUOGDWODUJHLVUHJDUGHGDVWKHKLJKHVW
WR PRVW SDLQIXO VXIIHULQJV LI KH LV UHMHFWHG E\ LW RU ORVHV LW VWDWHRIPLQGRIZKLFKPDQLVFDSDEOH(YHQDWWKLVHDUO\VWDJHLQ
WKURXJK GHDWK RU GHIHFWLRQ 7KH ZLVH PHQ RI DOO DJHV KDYH WKH GLVFXVVLRQ , ZLOO QRW ZLWKKROG WKH WZR SULQFLSDO REMHFWLRQV
FRQVHTXHQWO\ ZDUQHG XV HPSKDWLFDOO\ DJDLQVW WKLV ZD\ RI OLIH ZH KDYH WR UDLVH DJDLQVW WKLV YLHZ $ ORYH WKDW GRHV QRW
EXW LQ VSLWH RI DOO LW UHWDLQV LWV DWWUDFWLRQ IRU D JUHDW QXPEHU RI GLVFULPLQDWHVHHPVWRXVWRORVHVRPHRILWVRZQYDOXHVLQFHLW
SHRSOH GRHV DQ LQMXVWLFH WR LWV REMHFW $QG VHFRQGO\ QRW DOO PHQ DUH
ZRUWK\RIORYH
$VPDOOPLQRULW\DUHHQDEOHGE\WKHLUFRQVWLWXWLRQQHYHUWKHOHVV
WRILQGKDSSLQHVVDORQJWKHSDWKRIORYHEXWIDUUHDFKLQJPHQWDO
WUDQVIRUPDWLRQV RI WKH HURWLF IXQFWLRQ DUH QHFHVVDU\ EHIRUH WKLV 7KH ORYH WKDW LQVWLWXWHG WKH IDPLO\ VWLOO UHWDLQV LWV SRZHU LQ LWV
LVSRVVLEOH7KHVHSHRSOHPDNHWKHPVHOYHVLQGHSHQGHQWRIWKHLU RULJLQDOIRUPLWGRHVQRWVWRSVKRUWRIGLUHFWVH[XDOVDWLVIDFWLRQ
REMHFWV DFTXLHVFHQFH E\ WUDQVIHUULQJ WKH PDLQ YDOXH IURP WKH DQG LQ LWV PRGLILHG IRUP DV DLPLQKLELWHG IULHQGOLQHVV LW
IDFW RI EHLQJ ORYHG WR WKHLU RZQ DFW RI ORYLQJ WKH\ SURWHFW LQIOXHQFHV RXU FLYLOL]DWLRQ ,Q ERWK WKHVH IRUPV LW FDUULHV RQ LWV
WKHPVHOYHV DJDLQVW ORVV RI LW E\ DWWDFKLQJ WKHLU ORYH QRW WR WDVNRIELQGLQJPHQDQGZRPHQWRRQHDQRWKHUDQGLWGRHVWKLV
LQGLYLGXDO REMHFWV EXW WR DOO PHQ HTXDOO\ DQG WKH\ DYRLG WKH ZLWK JUHDWHU LQWHQVLW\ WKDQ FDQ EH DFKLHYHG WKURXJK WKH LQWHUHVW
XQFHUWDLQWLHV DQG GLVDSSRLQWPHQWV RI JHQLWDO ORYH E\ WXUQLQJ RI ZRUN LQ FRPPRQ 7KH FDVXDO DQG XQGLIIHUHQWLDWHG ZD\ LQ
DZD\ IURP LWV VH[XDO DLP DQG PRGLI\LQJ WKH LQVWLQFW LQWR DQ ZKLFK WKH ZRUG ORYH LV HPSOR\HG E\ ODQJXDJH KDV LWV JHQHWLF
LPSXOVH ZLWK DQ LQKLELWHG DLP 7KH VWDWH ZKLFK WKH\ LQGXFH LQ MXVWLILFDWLRQ,QJHQHUDOXVDJHWKHUHODWLRQEHWZHHQDPDQDQGD
ZRPDQZKRVHJHQLWDOGHVLUHVKDYHOHGWKHPWRIRXQGDIDPLO\LV 2QH JHWV WKH LPSUHVVLRQ WKDW WKHVH GLIILFXOWLHV IRUP DQ LQWHJUDO
FDOOHGORYH EXW WKH SRVLWLYH DWWLWXGH RI IHHOLQJ EHWZHHQ SDUHQWV SDUWRIHYHU\SURFHVVRIPHQWDOHYROXWLRQDQGLQGHHGDWERWWRP
DQG FKLOGUHQ EHWZHHQ EURWKHUV DQG VLVWHUV LQ D IDPLO\ LV DOVR RIHYHU\RUJDQLFGHYHORSPHQWWRR
FDOOHGORYHDOWKRXJKWRXVWKLVUHODWLRQPHULWVWKHGHVFULSWLRQRI
DLPLQKLELWHGORYHRUDIIHFWLRQ/RYHZLWKDQLQKLELWHGDLPZDV 7KH QH[W GLVFRUG LV FDXVHG E\ ZRPHQ ZKR VRRQ EHFRPH
LQGHHG RULJLQDOO\ IXOO VHQVXDO ORYH DQG LQ PHQV XQFRQVFLRXV DQWLWKHWLFDO WR FXOWXUDO WUHQGV DQG VSUHDG DURXQG WKHP WKHLU
PLQGVLVVRVWLOO%RWKRIWKHPWKHVHQVXDODQGWKHDLPLQKLELWHG FRQVHUYDWLYHLQIOXHQFHWKHZRPHQZKRDWWKHEHJLQQLQJODLGWKH
IRUPVUHDFKRXWEH\RQGWKHIDPLO\DQGFUHDWHQHZERQGVZLWK IRXQGDWLRQV RI FXOWXUH E\ WKH DSSHDO RI WKHLU ORYH :RPHQ
RWKHUV ZKR EHIRUH ZHUH VWUDQJHUV *HQLWDO ORYH OHDGV WR WKH UHSUHVHQWWKHLQWHUHVWVRIWKHIDPLO\DQGVH[XDOOLIHWKHZRUNRI
IRUPLQJRIQHZIDPLOLHVDLPLQKLELWHGORYHWRIULHQGVKLSVZKLFK FLYLOL]DWLRQ KDV EHFRPH PRUH DQG PRUH PHQV EXVLQHVV LW
DUH YDOXDEOH FXOWXUDOO\ EHFDXVH WKH\ GR QRW HQWDLO PDQ\ RI WKH FRQIURQWV WKHP ZLWK HYHU KDUGHU WDVNV FRPSHOV WKHP WR
OLPLWDWLRQVRIJHQLWDOORYHIRULQVWDQFHLWVH[FOXVLYHQHVV%XWWKH VXEOLPDWLRQV RI LQVWLQFW ZKLFK ZRPHQ DUH QRW HDVLO\ DEOH WR
LQWHUUHODWLRQV EHWZHHQ ORYH DQG FXOWXUH ORVH WKHLU VLPSOLFLW\ DV DFKLHYH 6LQFH PDQ KDV QRW DQ XQOLPLWHG DPRXQW RI PHQWDO
GHYHORSPHQW SURFHHGV 2Q WKH RQH KDQG ORYH RSSRVHV WKH HQHUJ\ DW KLV GLVSRVDO KH PXVW DFFRPSOLVK KLV WDVNV E\
LQWHUHVWV RI FXOWXUH RQ WKH RWKHU FXOWXUH PHQDFHV ORYH ZLWK GLVWULEXWLQJ KLV OLELGR WR WKH EHVW DGYDQWDJH :KDW KH HPSOR\V
JULHYRXVUHVWULFWLRQV IRU FXOWXUDO SXUSRVHV KH ZLWKGUDZV WR D JUHDW H[WHQW IURP
ZRPHQ DQG KLV VH[XDO OLIH KLV FRQVWDQW DVVRFLDWLRQ ZLWK PHQ
7KLV ULIW EHWZHHQ WKHP VHHPV LQHYLWDEOH WKH FDXVH RI LW LV QRW DQG KLV GHSHQGHQFH RQ KLV UHODWLRQV ZLWK WKHP HYHQ HVWUDQJH
LPPHGLDWHO\ UHFRJQL]DEOH ,W H[SUHVVHV LWVHOI ILUVW LQ D FRQIOLFW KLPIURPKLVGXWLHVDVKXVEDQGDQGIDWKHU:RPDQILQGVKHUVHOI
EHWZHHQ WKH IDPLO\ DQG WKH ODUJHU FRPPXQLW\ WR ZKLFK WKH WKXV IRUFHG LQWR WKH EDFNJURXQG E\ WKH FODLPV RI FXOWXUH DQG
LQGLYLGXDO EHORQJV :H KDYH VHHQ DOUHDG\ WKDW RQH RI FXOWXUHV VKHDGRSWVDQLQLPLFDODWWLWXGHWRZDUGVLW
SULQFLSDOHQGHDYRXUVLVWRFHPHQWPHQDQGZRPHQWRJHWKHULQWR
ODUJHUXQLWV%XWWKHIDPLO\ZLOOQRWJLYHXSWKHLQGLYLGXDO7KH 7KHWHQGHQF\RIFXOWXUHWRVHWUHVWULFWLRQVXSRQVH[XDOOLIHLVQR
FORVHUWKHDWWDFKPHQWEHWZHHQWKHPHPEHUVRILWWKHPRUHWKH\ OHVV HYLGHQW WKDQ LWV RWKHU DLP RI ZLGHQLQJ LWV VSKHUH RI
RIWHQ WHQG WR UHPDLQ DORRI IURP RWKHUV DQG WKH KDUGHU LW LV IRU RSHUDWLRQV(YHQWKHHDUOLHVWSKDVHRILWWKHWRWHPLFEURXJKWLQ
WKHP WR HQWHU LQWR WKH ZLGHU FLUFOH RI WKH ZRUOG DW ODUJH 7KDW LWVWUDLQWKHSURKLELWLRQDJDLQVWLQFHVWXRXVREMHFWFKRLFHSHUKDSV
IRUP RI OLIH LQ FRPPRQ ZKLFK LV SK\ORJHQHWLFDOO\ ROGHU DQG LV WKHPRVWPDLPLQJZRXQGHYHULQIOLFWHGWKURXJKRXWWKHDJHVRQ
LQ FKLOGKRRG LWV RQO\ IRUP UHVLVWV EHLQJ GLVSODFHG E\ WKH W\SH WKHHURWLFOLIHRIPDQ)XUWKHUOLPLWDWLRQVDUHODLGRQLWE\WDERRV
WKDW EHFRPHV DFTXLUHG ODWHU ZLWK FXOWXUH 'HWDFKPHQW IURP WKH ODZVDQGFXVWRPVZKLFKWRXFKPHQDVZHOODVZRPHQ9DULRXV
IDPLO\KDVEHFRPHDWDVNWKDWDZDLWVHYHU\DGROHVFHQWDQGRIWHQ W\SHVRIFXOWXUHGLIIHULQWKHOHQJWKVWRZKLFKWKH\FDUU\WKLVDQG
VRFLHW\ KHOSV KLP WKURXJK LW ZLWK SXEHUWDO DQG LQLWLDWRU\ ULWHV WKHPDWHULDOVWUXFWXUHRIWKHVRFLDOIDEULFDOVRDIIHFWVWKHPHDVXUH
RIVH[XDOIUHHGRPWKDWUHPDLQV:HKDYHVHHQWKDWFXOWXUHREH\V JLYHVXVSODLQO\WRXQGHUVWDQGWKDWVH[XDOUHODWLRQVDUHSHUPLWWHG
WKH ODZV RI SV\FKRORJLFDO HFRQRPLF QHFHVVLW\ LQ PDNLQJ WKH RQO\ RQ WKH EDVLV RI D ILQDO LQGLVVROXEOH ERQG EHWZHHQ D PDQ
UHVWULFWLRQV IRU LW REWDLQV D JUHDW SDUW RI WKH PHQWDO HQHUJ\ LW DQGZRPDQWKDWVH[XDOLW\DVDVRXUFHRIHQMR\PHQWIRULWVRZQ
QHHGVE\VXEWUDFWLQJLWIURPVH[XDOLW\&XOWXUHEHKDYHVWRZDUGV VDNH LV XQDFFHSWDEOH WR LW DQG WKDW LWV LQWHQWLRQ LV WR WROHUDWH LW
VH[XDOLW\LQWKLVUHVSHFWOLNHDWULEHRUDVHFWLRQRIWKHSRSXODWLRQ RQO\ DV WKH KLWKHUWR LUUHSODFHDEOH PHDQV RI PXOLSO\LQJ WKH
ZKLFKKDVJDLQHGWKHXSSHUKDQGDQGLVH[SORLWLQJWKHUHVWWRLWV KXPDQUDFH
RZQ DGYDQWDJH )HDU RI D UHYROW DPRQJ WKH RSSUHVVHG WKHQ
EHFRPHV D PRWLYH IRU HYHQ VWULFWHU UHJXODWLRQV $ KLJKZDWHU
PDUN LQ WKLV W\SH RI GHYHORSPHQW KDV EHHQ UHDFKHG LQ RXU 7KLV RI FRXUVH UHSUHVHQWV DQ H[WUHPH (YHU\RQH NQRZV WKDW LW
:HVWHUQ(XURSHDQFLYLOL]DWLRQ3V\FKRORJLFDOO\LWLVIXOO\MXVWLILHG KDV SURYHG LPSRVVLEOH WR SXW LW LQWR H[HFXWLRQ HYHQ IRU VKRUW
LQ EHJLQQLQJ E\ FHQVXULQJ DQ\ PDQLIHVWDWLRQV RI WKH VH[XDO OLIH SHULRGV 2QO\ WKH ZHDNOLQJV KDYH VXEPLWWHG WR VXFK
RI FKLOGUHQ IRU WKHUH ZRXOG EH QR SURVSHFW RI FXUELQJ WKH FRPSUHKHQVLYH LQWHUIHUHQFH ZLWK WKHLU VH[XDO IUHHGRP DQG
VH[XDOGHVLUHVRIDGXOWVLIWKHJURXQGKDGQRWEHHQSUHSDUHGIRU VWURQJHU QDWXUHV KDYH GRQH VR RQO\ XQGHU RQH FRPSHQVDWRU\
LWLQFKLOGKRRG1HYHUWKHOHVVWKHUHLVQRVRUWRIMXVWLILFDWLRQIRU FRQGLWLRQ RI ZKLFK PHQWLRQ PD\ EH PDGH ODWHU &LYLOL]HG
WKH OHQJWKV EH\RQG WKLV WR ZKLFK FLYLOL]HG VRFLHW\ JRHV LQ VRFLHW\ KDV VHHQ LWVHOI REOLJHG WR SDVV RYHU LQ VLOHQFH PDQ\
DFWXDOO\GHQ\LQJWKHH[LVWHQFHRIWKHVHPDQLIHVWDWLRQVZKLFKDUH WUDQVJUHVVLRQV ZKLFK E\ LWV RZQ RUGLQDQFHV LW RXJKW WR KDYH
QRW PHUHO\ GHPRQVWUDEOH EXW SRVLWLYHO\ JODULQJ :KHUH VH[XDOO\ SHQDOL]HG 7KLV GRHV QRW MXVWLI\ DQ\RQH KRZHYHU LQ OHDQLQJ
PDWXUHSHUVRQVDUHFRQFHUQHGREMHFWFKRLFHLVIXUWKHUQDUURZHG WRZDUGV WKH RWKHU VLGH DQG DVVXPLQJ WKDW EHFDXVH LW GRHV QRW
GRZQWRWKHRSSRVLWHVH[DQGPRVWRIWKHH[WUDJHQLWDOIRUPVRI DFKLHYH DOO LW DLPV DW VXFK DQ DWWLWXGH RQ WKH SDUW RI VRFLHW\ LV
VDWLVIDFWLRQ DUH LQWHUGLFWHG DV SHUYHUVLRQV 7KH VWDQGDUG ZKLFK DOWRJHWKHUKDUPOHVV7KHVH[XDOOLIHRIFLYLOL]HGPDQLVVHULRXVO\
GHFODUHV LWVHOI LQ WKHVH SURKLELWLRQV LV WKDW RI D VH[XDO OLIH GLVDEOHG ZKDWHYHU ZH PD\ VD\ LW VRPHWLPHV PDNHV DQ
LGHQWLFDO IRU DOO LW SD\V QR KHHG WR WKH GLVSDULWLHV LQ WKH LQERUQ LPSUHVVLRQ RI EHLQJ D IXQFWLRQ LQ SURFHVV RI EHFRPLQJ
DQG DFTXLUHG VH[XDO FRQVWLWXWLRQV RI LQGLYLGXDOV DQG FXWV RII D DWURSKLHGMXVWDVRUJDQVOLNHRXUWHHWKDQGRXUKDLUVHHPWREH
FRQVLGHUDEOH QXPEHU RI WKHP IURP VH[XDO HQMR\PHQW WKXV 2QH LV SUREDEO\ ULJKW LQ VXSSRVLQJ WKDW WKH LPSRUWDQFH RI
EHFRPLQJ D FDXVH RI JULHYRXV LQMXVWLFH 7KH HIIHFW RI WKHVH VH[XDOLW\DVDVRXUFHRISOHDVXUDEOHVHQVDWLRQVLHDVDPHDQV
UHVWULFWLYH PHDVXUHV PLJKW SUHVXPDEO\ EH WKDW DOO WKH VH[XDO RI IXOILOOLQJ WKH SXUSRVH RI OLIH KDV SHUFHSWLEO\ GHFUHDVHG 
LQWHUHVW RI WKRVH ZKR DUH QRUPDO DQG QRW FRQVWLWXWLRQDOO\ 6RPHWLPHV RQH LPDJLQHV RQH SHUFHLYHV WKDW LW LV QRW RQO\ WKH
KDQGLFDSSHG FRXOG IORZ ZLWKRXW IXUWKHU IRUIHLWXUH LQWR WKH RSSUHVVLRQ RI FXOWXUH EXW VRPHWKLQJ LQ WKH QDWXUH RI WKH
FKDQQHO OHIW RSHQ WR LW %XW WKH RQO\ RXWOHW QRW WKXV FHQVXUHG IXQFWLRQ LWVHOI WKDW GHQLHV XV IXOO VDWLVIDFWLRQ DQG XUJHV XV LQ
KHWHURVH[XDO JHQLWDO ORYH LV IXUWKHU FLUFXPVFULEHG E\ WKH RWKHUGLUHFWLRQV7KLVPD\EHDQHUURULWLVKDUGWRGHFLGH
EDUULHUV RI OHJLWLPDF\ DQG PRQRJDP\ 3UHVHQWGD\ FLYLOL]DWLRQ
 7KHUH LV D VKRUW VWRU\ ZKLFK , YDOXHG ORQJ DJR E\ D SRVVLELOLW\ WKDW WKHVH QHHGV ZLOO QRW ERWK EH JUDWLILHG RQ WKH
KLJKO\VHQVLWLYHZULWHUWKH(QJOLVKPDQ-RKQ*DOVZRUWK\ VDPHREMHFWDQGWKDWWKH\ZLOOLQWHUIHUHZLWKHDFKRWKHU
ZKRWRGD\HQMR\VJHQHUDOUHFRJQLWLRQLWLVFDOOHG7KH$SSOH LIWKH\FDQQRWEHNHSWDSDUWVRWKDWHDFKLPSXOVHIORZVLQWR
7UHH,WVKRZVLQDYHU\PRYLQJDQGIRUFLEOHZD\ DVSHFLDOFKDQQHOVXLWHGIRULW$QRWKHUGLIILFXOW\DULVHV
KRZWKHUHLVQRORQJHUDQ\SODFHLQSUHVHQWGD\FLYLOL]HGOLIH IURP WKH FLUFXPVWDQFH WKDW VR RIWHQ D PHDVXUH RI GLUHFW
IRUDVLPSOHQDWXUDOORYHEHWZHHQWZRKXPDQEHLQJV DJJUHVVLYHQHVVLVFRXSOHGZLWKDQHURWLFUHODWLRQVKLSRYHU
DQGDERYHLWVLQKHUHQWVDGLVWLFFRPSRQHQWV7KHORYHREMHFW
 7KH IROORZLQJ FRQVLGHUDWLRQV ZRXOG VXSSRUW WKH YLHZ GRHVQRWDOZD\VYLHZWKHVHFRPSOLFDWLRQVZLWKWKH
H[SUHVVHGDERYH0DQWRRLVDQDQLPDOZLWKDQ GHJUHH RI XQGHUVWDQGLQJ DQG WROHUDQFH PDQLIHVWHG E\ WKH
XQPLVWDNDEO\ ELVH[XDO GLVSRVLWLRQ 7KH LQGLYLGXDO UHSUHVHQWV SHDVDQWZRPDQZKRFRPSODLQHGWKDWKHUKXVEDQGGLG
DIXVLRQRIWZRV\PPHWULFDOKDOYHVRIZKLFK QRWORYHKHUDQ\PRUHEHFDXVHKHKDGQRWEHDWHQKHUIRUD
DFFRUGLQJWRPDQ\DXWKRULWLHVRQHLVSXUHO\PDOHWKHRWKHU ZHHN
IHPDOH,WLVHTXDOO\SRVVLEOHWKDWHDFKKDOIZDV
RULJLQDOO\ KHUPDSKURGLWLF 6H[ LV D ELRORJLFDO IDFW ZKLFK LV 7KH FRQMHFWXUH ZKLFK OHDGV IXUWKHVW KRZHYHU LV WKDW DQG
KDUGWRHYDOXDWHSV\FKRORJLFDOO\DOWKRXJKLWLVRI KHUHZHFRPHEDFNWRWKHUHPDUNVLQIRRWQRWHWKH
H[WUDRUGLQDU\LPSRUWDQFHLQPHQWDOOLIH:HDUHDFFXVWRPHG ZKROH RI VH[XDOLW\ DQG QRW PHUHO\ DQDO HURWLVP LV
WRVD\WKDWHYHU\KXPDQEHLQJGLVSOD\VERWKPDOHDQG WKUHDWHQHGZLWKIDOOLQJDYLFWLPWRWKHRUJDQLFUHSUHVVLRQ
IHPDOH LQVWLQFWXDO LPSXOVHV QHHGV DQG DWWULEXWHV EXW WKH FRQVHTXHQW XSRQ PDQV DGRSWLRQ RI WKH HUHFW SRVWXUH DQG
FKDUDFWHULVWLFVRIZKDWLVPDOHDQGIHPDOHFDQRQO\EH WKHORZHULQJLQYDOXHRIWKHVHQVHRIVPHOOVRWKDWVLQFH
GHPRQVWUDWHGLQDQDWRP\DQGQRWLQSV\FKRORJ\:KHUHWKH WKDW WLPH WKH VH[XDO IXQFWLRQ KDV EHHQ DVVRFLDWHG ZLWK D
ODWWHULVFRQFHUQHGWKHDQWLWKHVLVRIVH[IDGHVDZD\LQWR UHVLVWDQFHQRWVXVFHSWLEOHRIIXUWKHUH[SODQDWLRQZKLFKSXWV
WKDWRIDFWLYLW\DQGSDVVLYLW\DQGZHIDUWRRUHDGLO\LGHQWLI\ REVWDFOHV LQ WKH ZD\ RI IXOO VDWLVIDFWLRQ DQG IRUFHV LW DZD\
DFWLYLW\ZLWKPDVFXOLQLW\DQGSDVVLYLW\ZLWKIHPLQLQLW\ IURPLWVVH[XDODLPWRZDUGVVXEOLPDWLRQVDQG
D VWDWHPHQW ZKLFK LV E\ QR PHDQV XQLYHUVDOO\ FRQILUPHG LQ GLVSODFHPHQWV RI OLELGR , DP DZDUH WKDW %OHXOHU LQ 'HU
WKHDQLPDOZRUOG7KHWKHRU\RIELVH[XDOLW\LVVWLOOYHU\ 6H[XDOZLGHUVWDQG-DKUEXFKIXUSV\FKRDQDO\WLVFKHXQG
REVFXUHDQGLQSV\FKRDQDO\VLVZHPXVWEHSDLQIXOO\DZDUH SV\FKRSDWKRORJLVFKH )RUVFKXQJHQ 9RO 9   RQFH
RIWKHGLVDGYDQWDJHZHDUHXQGHUDVORQJDVLWVWLOO SRLQWHGRXWWKHH[LVWHQFHRIDIXQGDPHQWDOWHQGHQF\RIWKLV
UHPDLQV XQFRQQHFWHG ZLWK WKH WKHRU\ RI LQVWLQFWV +RZHYHU NLQG WRZDUGV UHMHFWLQJ VH[XDO OLIH $OO QHXURWLFV DQG PDQ\
WKLVPD\EHLIZHDVVXPHLWWREHDIDFWWKDWHDFK RWKHUVWRRWDNHH[FHSWLRQWRWKHIDFWWKDWLQWHUXULQDVHW
LQGLYLGXDO KDV ERWK PDOH DQG IHPDOH GHVLUHV ZKLFK QHHG IDHFHVQDVFLPXU>:HDUHERUQDPRQJXULQHDQGIDHFHV@7KH
VDWLVIDFWLRQLQKLVVH[XDOOLIHZHVKDOOEHSUHSDUHGIRUWKH JHQLWDOVWRRH[FLWHWKHROIDFWRU\VHQVHVWURQJO\LQDZD\
WKDW PDQ\ SHRSOH FDQQRW WROHUDWH DQG ZKLFK VSRLOV VH[XDO
LQWHUFRXUVHIRUWKHP7KXVZHVKRXOGILQGDVWKHGHHSHVW
URRWRIWKHVH[XDOUHSUHVVLRQWKDWPDUFKHVZLWKFXOWXUHWKH
RUJDQLFGHIHQFHRIWKHQHZIRUPRIOLIHWKDWEHJDQZLWK
WKH HUHFW SRVWXUH DJDLQVW WKH HDUOLHVW W\SH RI DQLPDO 9
H[LVWHQFHDUHVXOWRIVFLHQWLILFUHVHDUFKHVWKDWFRLQFLGHVLQD
FXULRXV ZD\ ZLWK RIWHQ H[SUHVVHG YXOJDU SUHMXGLFHV $W WKH
36<&+2$1$/<7,& ZRUN KDV VKRZQ WKDW WKHVH IUXVWUDWLRQV
SUHVHQWWLPHQHYHUWKHOHVVWKHVHUHVXOWVDUHEXW
LQ UHVSHFW RI VH[XDO OLIH DUH HVSHFLDOO\ XQHQGXUDEOH WR WKH VR
XQFRQILUPHGSRVVLELOLWLHVQRW\HWVFLHQWLILFDOO\VXEVWDQWLDWHG
FDOOHG QHXURWLFV DPRQJ XV 7KHVH SHUVRQV PDQXIDFWXUH
1RUVKRXOGZHIRUJHWWKDWLQVSLWHRIWKHXQGHQLDEOH
VXEVWLWXWHJUDWLILFDWLRQV IRU WKHPVHOYHV LQ WKHLU V\PSWRPV
GLPLQXWLRQLQWKHLPSRUWDQFHRIROIDFWRU\VWLPXOLWKHUHH[LVW
ZKLFKKRZHYHUDUHHLWKHUSDLQIXOLQWKHPVHOYHVRUEHFRPHWKH
HYHQLQ(XURSHUDFHVZKRSUL]HKLJKO\DVDSKURGLVLDFV
FDXVH RI VXIIHULQJ RZLQJ WR WKH GLIILFXOWLHV WKH\ FUHDWH ZLWK WKH
WKHVWURQJJHQLWDORGRXUVVRREMHFWLRQDEOHWRXVDQGZKRZLOO
SHUVRQV HQYLURQPHQW DQG VRFLHW\ DW ODUJH ,W LV HDV\ WR
QRWUHQRXQFHWKHP &IWKHUHSRUWVRIIRONORULVWLF
XQGHUVWDQGWKHODWWHUIDFWEXWWKHIRUPHUSUHVHQWVXVZLWKDQHZ
LQIRUPDWLRQ REWDLQHG E\ ,ZDQ %ORFKV 4XHVWLRQQDLUH
SUREOHP %XW FXOWXUH GHPDQGV RWKHU VDFULILFHV EHVLGHV WKDW RI
DSSHDULQJXQGHUWKHWLWOHRI8EHUGHQ*HUXFKVVLQQLQGHU
VH[XDOJUDWLILFDWLRQV
YLWD VH[XDOLV LQ YDULRXV YROXPHV RI )ULHGULFK 6 .UDXVV
$QWKURSRSK\WHLD
:H KDYH UHJDUGHG WKH GLIILFXOWLHV LQ WKH GHYHORSPHQW RI
FLYLOL]DWLRQ DV SDUW RI WKH JHQHUDO GLIILFXOW\ DFFRPSDQ\LQJ DOO
HYROXWLRQ IRU ZH KDYH WUDFHG WKHP WR WKH LQHUWLD RI OLELGR LWV
GLVLQFOLQDWLRQ WR UHOLQTXLVK DQ ROG SRVLWLRQ LQ IDYRXU RI D QHZ
RQH,WLVPXFKWKHVDPHWKLQJLIZHVD\WKDWWKHFRQIOLFWEHWZHHQ
FLYLOL]DWLRQ DQG VH[XDOLW\ LV FDXVHG E\ WKH FLUFXPVWDQFH WKDW
VH[XDO ORYH LV D UHODWLRQVKLS EHWZHHQ WZR SHRSOH LQ ZKLFK D
WKLUGFDQRQO\EHVXSHUIOXRXVRUGLVWXUELQJZKHUHDVFLYLOL]DWLRQ
LVIRXQGHGRQUHODWLRQVEHWZHHQODUJHUJURXSVRISHUVRQV:KHQ
DORYHUHODWLRQVKLSLVDWLWVKHLJKWQRURRPLVOHIWIRUDQ\LQWHUHVW
LQ WKH VXUURXQGLQJ ZRUOG WKH SDLU RI ORYHUV DUH VXIILFLHQW XQWR
WKHPVHOYHVGRQRWHYHQQHHGWKHFKLOGWKH\KDYHLQFRPPRQWR
PDNHWKHPKDSS\,QQRRWKHUFDVHGRHV(URVVRSODLQO\EHWUD\
WKH FRUH RI KLV EHLQJ KLV DLP RI PDNLQJ RQH RXW RI PDQ\ EXW
ZKHQKHKDVDFKLHYHGLWLQWKHSURYHUELDOZD\WKURXJKWKHORYH DOO KRZ FDQ ZH GR VXFK D WKLQJ" +RZ FRXOG LW SRVVLEO\ EH
RIWZRKXPDQEHLQJVKHLVQRWZLOOLQJWRJRIXUWKHU GRQH"0\ORYHVHHPVWRPHDYDOXDEOHWKLQJWKDW,KDYHQRULJKW
WRWKURZDZD\ZLWKRXWUHIOHFWLRQ,WLPSRVHVREOLJDWLRQVRQPH
)URPDOOWKLVZHPLJKWZHOOLPDJLQHWKDWDFLYLOL]HGFRPPXQLW\ ZKLFK , PXVW EH SUHSDUHG WR PDNH VDFULILFHV WR IXOILO ,I , ORYH
FRXOG FRQVLVW RI SDLUV RI LQGLYLGXDOV VXFK DV WKLV OLELGLQDOO\ VRPHRQHKHPXVWEHZRUWK\RILWLQVRPHZD\RURWKHU ,DP
VDWLVILHGLQHDFKRWKHUDQGOLQNHGWRDOOWKHRWKHUVE\ZRUNDQG OHDYLQJRXWRIDFFRXQWQRZWKHXVHKHPD\EHWRPHDVZHOODV
FRPPRQ LQWHUHVWV ,I WKLV ZHUH VR FXOWXUH ZRXOG QRW QHHG WR KLV SRVVLEOH VLJQLILFDQFH WR PH DV D VH[XDO REMHFW QHLWKHU RI
OHY\ HQHUJ\ IURP VH[XDOLW\ %XW VXFK D GHVLUDEOH VWDWH RI WKLQJV WKHVH WZR NLQGV RI UHODWLRQVKLS EHWZHHQ XV FRPH LQWR TXHVWLRQ
GRHV QRW H[LVW DQG QHYHU KDV H[LVWHG LQ DFWXDOLW\ FXOWXUH LV QRW ZKHUH WKH LQMXQFWLRQ WR ORYH P\ QHLJKERXU LV FRQFHUQHG  +H
FRQWHQWZLWKVXFKOLPLWHGWLHVDVWKHVHZHVHHWKDWLWHQGHDYRXUV ZLOOEHZRUWK\RILWLIKHLVVROLNHPHLQLPSRUWDQWUHVSHFWVWKDW
WR ELQG WKH PHPEHUV RI WKH FRPPXQLW\ WR RQH DQRWKHU E\ , FDQ ORYH P\VHOI LQ KLP ZRUWK\ RI LW LI KH LV VR PXFK PRUH
OLELGLQDO WLHV DV ZHOO WKDW LW PDNHV XVH RI HYHU\ PHDQV DQG SHUIHFWWKDQ,WKDW,FDQORYHP\LGHDORIP\VHOILQKLP,PXVW
IDYRXUVHYHU\DYHQXHE\ZKLFKSRZHUIXOLGHQWLILFDWLRQVFDQEH ORYHKLPLIKHLVWKHVRQRIP\IULHQGVLQFHWKHSDLQP\IULHQG
FUHDWHG DPRQJ WKHP DQG WKDW LW H[DFWV D KHDY\ WROO RI DLP ZRXOGIHHOLIDQ\WKLQJXQWRZDUGKDSSHQHGWRKLPZRXOGEHP\
LQKLELWHGOLELGRLQRUGHUWRVWUHQJWKHQFRPPXQLWLHVE\ERQGVRI SDLQ, VKRXOG KDYH WR VKDUH LW %XW LI KH LV D VWUDQJHU WR PH DQG
IULHQGVKLS EHWZHHQ WKH PHPEHUV 5HVWULFWLRQV XSRQ VH[XDO OLIH FDQQRW DWWUDFW PH E\ DQ\ YDOXH KH KDV LQ KLPVHOI RU DQ\
DUHXQDYRLGDEOHLIWKLVREMHFWLVWREHDWWDLQHG%XWZHFDQQRWVHH VLJQLILFDQFHKHPD\KDYHDOUHDG\DFTXLUHGLQP\HPRWLRQDOOLIH
WKHQHFHVVLW\WKDWIRUFHVFXOWXUHDORQJWKLVSDWKDQGJLYHVULVHWR LWZLOOEHKDUGIRUPHWRORYHKLP,VKDOOHYHQEHGRLQJZURQJLI
LWV DQWDJRQLVP WR VH[XDOLW\ ,W PXVW EH GXH WR VRPH GLVWXUELQJ ,GRIRUP\ORYHLVYDOXHGDVDSULYLOHJHE\DOOWKRVHEHORQJLQJ
LQIOXHQFHQRW\HWGHWHFWHGE\XV WRPHLWLVDQLQMXVWLFHWRWKHPLI,SXWDVWUDQJHURQDOHYHOZLWK
WKHP%XWLI,DPWRORYHKLP ZLWKWKDWNLQGRIXQLYHUVDOORYH
VLPSO\EHFDXVHKHWRRLVDGHQL]HQRIWKHHDUWKOLNHDQLQVHFWRU
:HPD\ILQGWKHFOXHLQRQHRIWKHVRFDOOHGLGHDOVWDQGDUGVRI DQ HDUWKZRUP RU D JUDVVVQDNH WKHQ , IHDU WKDW EXW D VPDOO
FLYLOL]HG VRFLHW\ ,W UXQV 7KRX VKDOW ORYH WK\ QHLJKERXU DV PRGLFXPRIORYHZLOOIDOOWRKLVORWDQGLWZRXOGEHLPSRVVLEOH
WK\VHOI  ,W LV ZRUOGUHQRZQHG XQGRXEWHGO\ ROGHU WKDQ IRU PH WR JLYH KLP DV PXFK DV E\ DOO WKH ODZV RI UHDVRQ , DP
&KULVWLDQLW\ ZKLFK SDUDGHV LW DV LWV SURXGHVW SURIHVVLRQ \HW HQWLWOHG WR UHWDLQ IRU P\VHOI :KDW LV WKH SRLQW RI DQ LQMXQFWLRQ
FHUWDLQO\QRWYHU\ROGLQKLVWRULFDOWLPHVPHQVWLOONQHZQRWKLQJ SURPXOJDWHGZLWKVXFKVROHPQLW\LIUHDVRQGRHVQRWUHFRPPHQG
RI LW :H ZLOO DGRSW D QDLYH DWWLWXGH WRZDUGV LW DV LI ZH ZHUH LWWRXV"
PHHWLQJ LW IRU WKH ILUVW WLPH 7KHUHXSRQ ZH ILQG RXUVHOYHV
XQDEOH WR VXSSUHVV D IHHOLQJ RI DVWRQLVKPHQW DV DW VRPHWKLQJ :KHQ , ORRN PRUH FORVHO\ , ILQG VWLOO IXUWKHU GLIILFXOWLHV 1RW
XQQDWXUDO:K\VKRXOGZHGRWKLV":KDWJRRGLVLWWRXV"$ERYH PHUHO\LVWKLVVWUDQJHURQWKHZKROHQRWZRUWK\RIORYHEXWWR
EH KRQHVW , PXVW FRQIHVV KH KDV PRUH FODLP WR P\ KRVWLOLW\ VHYHQ RI P\ HQHPLHV KDQJLQJ IURP WKHVH WUHHV :LWK P\
HYHQ WR P\ KDWUHG +H GRHV QRW VHHP WR KDYH WKH OHDVW WUDFH RI KHDUWIXOORIGHHSHPRWLRQ,VKDOOIRUJLYHWKHPEHIRUHWKH\
ORYHIRUPHGRHVQRWVKRZPHWKHVOLJKWHVWFRQVLGHUDWLRQ,ILW GLHDOOWKHZURQJWKH\GLGPHLQWKHLUOLIHWLPHWUXHRQHPXVW
ZLOOGRKLPDQ\JRRGKHKDVQRKHVLWDWLRQLQLQMXULQJPHQHYHU IRUJLYHRQHVHQHPLHVEXWQRWXQWLOWKH\DUHEURXJKW
HYHQ DVNLQJ KLPVHOI ZKHWKHU WKH DPRXQW RI DGYDQWDJH KH JDLQV WRH[HFXWLRQ+HLQH*HGDQNHQXQG(LQIDOOH
E\LWEHDUVDQ\SURSRUWLRQWRWKHDPRXQWRIZURQJGRQHWRPH
:KDWLVPRUHKHGRHVQRWHYHQQHHGWRJHWDQDGYDQWDJHIURPLW ,LPDJLQHQRZ,KHDUDYRLFHJUDYHO\DGMXULQJPH-XVWEHFDXVH
LIKHFDQPHUHO\JHWDOLWWOHSOHDVXUHRXWRILWKHWKLQNVQRWKLQJ WK\ QHLJKERXU LV QRW ZRUWK\ RI WK\ ORYH LV SUREDEO\ IXOO RI
RIMHHULQJDWPHLQVXOWLQJPHVODQGHULQJPHVKRZLQJKLVSRZHU HQPLW\ WRZDUGV WKHH WKRX VKRXOGVW ORYH KLP DV WK\VHOI  , WKHQ
RYHU PH DQG WKH PRUH VHFXUH KH IHHOV KLPVHOI RU WKH PRUH SHUFHLYHWKHFDVHWREHOLNHWKDWRI&UHGRTXLGDEVXUGXP
KHOSOHVV , DP ZLWK VR PXFK PRUH FHUWDLQW\ FDQ , H[SHFW WKLV
EHKDYLRXUIURPKLPWRZDUGVPH,IKHEHKDYHGGLIIHUHQWO\LIKH
VKRZHGPHFRQVLGHUDWLRQDQGGLGQRWPROHVWPH,VKRXOGLQDQ\ ,EHOLHYHLWEHFDXVHLWLVDEVXUG
FDVH ZLWKRXW WKH DIRUHVDLG FRPPDQGPHQW EH ZLOOLQJ WR WUHDW
KLPVLPLODUO\,IWKHKLJKVRXQGLQJRUGLQDQFHKDGUXQ/RYHWK\
QHLJKERXU DV WK\ QHLJKERXU ORYHV WKHH  , VKRXOG QRW WDNH 1RZLWLVRIFRXUVHYHU\SUREDEOHWKDWP\QHLJKERXUZKHQKH
REMHFWLRQWRLW$QGWKHUHLVDVHFRQGFRPPDQGPHQWWKDWVHHPV LV FRPPDQGHG WR ORYH PH DV KLPVHOI ZLOO DQVZHU H[DFWO\ DV ,
WR PH HYHQ PRUH LQFRPSUHKHQVLEOH DQG DURXVHV VWLOO VWURQJHU KDYHGRQHDQGUHMHFWPHIRUWKHVDPHUHDVRQV,KRSHKHZLOOQRW
RSSRVLWLRQ LQ PH ,W LV /RYH WKLQH HQHPLHV  :KHQ , WKLQN LW KDYHWKHVDPHREMHFWLYHJURXQGVIRUGRLQJVREXWKHZLOOKRSH
RYHUKRZHYHU,DPZURQJLQWUHDWLQJLWDVDJUHDWHULPSRVLWLRQ VR DV ZHOO (YHQ VR WKHUH DUH YDULDWLRQV LQ PHQV EHKDYLRXU
,WLVDWERWWRPWKHVDPHWKLQJ ZKLFK HWKLFV GLVUHJDUGLQJ WKH IDFW WKDW WKH\ DUH GHWHUPLQHG
FODVVLILHV DV JRRG DQG HYLO $V ORQJ DV WKHVH XQGHQLDEOH
 $ JUHDW SRHW PD\ SHUPLW KLPVHOI DW OHDVW LQ MHVW WR JLYH YDULDWLRQV KDYH QRW EHHQ DEROLVKHG FRQIRUPLW\ WR WKH KLJKHVW
XWWHUDQFHWRSV\FKRORJLFDOWUXWKVWKDWDUHKHDYLO\ HWKLFDOVWDQGDUGVFRQVWLWXWHVDEHWUD\DORIWKHLQWHUHVWVRIFXOWXUH
FHQVXUHG 7KXV +HLQH 0LQH LV WKH PRVW SHDFHDEOH IRU LW SXWV D GLUHFW SUHPLXP RQ ZLFNHGQHVV 2QH LV LUUHVLVWLEO\
GLVSRVLWLRQ 0\ ZLVKHV DUH D KXPEOH GZHOOLQJ ZLWK D UHPLQGHG KHUH RI DQ LQFLGHQW LQ WKH )UHQFK &KDPEHU ZKHQ
WKDWFKHG FDSLWDOSXQLVKPHQWZDVEHLQJGLVFXVVHGWKHVSHHFKRIDPHPEHU
URRI EXW D JRRG EHG JRRG IRRG PLON DQG EXWWHU RI WKH ZKR KDG SDVVLRQDWHO\ VXSSRUWHG LWV DEROLWLRQ ZDV EHLQJ
IUHVKHVWIORZHUVDWP\ZLQGRZVVRPHILQHWDOOWUHHVEHIRUH DSSODXGHG ZLWK ORXG DFFODPDWLRQ ZKHQ VXGGHQO\ D YRLFH ZDV
P\GRRUDQGLIWKHJRRG*RGZDQWVWRPDNHPHFRPSOHWHO\ KHDUGFDOOLQJRXWIURPWKHEDFNRIWKHURRP4XHPHVVLHXUVOHV
KDSS\KHZLOOJUDQWPHWKHMR\RIVHHLQJVRPHVL[RU DVVDVVLQVFRPPHQFHQW
0DQLVWRPDQDZROI
/HWWKHPXUGHUHUVEHJLQ

7KHH[LVWHQFHRIWKLVWHQGHQF\WRDJJUHVVLRQZKLFKZHFDQGHWHFW
7KHELWRIWUXWKEHKLQGDOOWKLVRQHVRHDJHUO\GHQLHGLVWKDWPHQ LQ RXUVHOYHV DQG ULJKWO\ SUHVXPH WR EH SUHVHQW LQ RWKHUV LV WKH
DUH QRW JHQWOH IULHQGO\ FUHDWXUHV ZLVKLQJ IRU ORYH ZKR VLPSO\ IDFWRUWKDWGLVWXUEVRXUUHODWLRQVZLWKRXUQHLJKERXUVDQGPDNHV
GHIHQG WKHPVHOYHV LI WKH\ DUH DWWDFNHG EXW WKDW D SRZHUIXO LW QHFHVVDU\ IRU FXOWXUH WR LQVWLWXWH LWV KLJK GHPDQGV &LYLOL]HG
PHDVXUH RI GHVLUH IRU DJJUHVVLRQ KDV WR EH UHFNRQHG DV SDUW RI VRFLHW\ LV SHUSHWXDOO\ PHQDFHG ZLWK GLVLQWHJUDWLRQ WKURXJK WKLV
WKHLULQVWLQFWXDOHQGRZPHQW7KHUHVXOWLVWKDWWKHLUQHLJKERXULV SULPDU\KRVWLOLW\RIPHQWRZDUGVRQHDQRWKHU7KHLULQWHUHVWVLQ
WR WKHP QRW RQO\ D SRVVLEOH KHOSHU RU VH[XDO REMHFW EXW DOVR D WKHLUFRPPRQZRUNZRXOGQRWKROGWKHPWRJHWKHUWKHSDVVLRQV
WHPSWDWLRQ WR WKHP WR JUDWLI\ WKHLU DJJUHVVLYHQHVV RQ KLP WR RI LQVWLQFW DUH VWURQJHU WKDQ UHDVRQHG LQWHUHVWV &XOWXUH KDV WR
H[SORLW KLV FDSDFLW\ IRU ZRUN ZLWKRXW UHFRPSHQVH WR XVH KLP FDOO XS HYHU\ SRVVLEOH UHLQIRUFHPHQW LQ RUGHU WR HUHFW EDUULHUV
VH[XDOO\ ZLWKRXW KLV FRQVHQW WR VHL]H KLV SRVVHVVLRQV WR DJDLQVW WKH DJJUHVVLYH LQVWLQFWV RI PHQ DQG KROG WKHLU
KXPLOLDWHKLPWRFDXVHKLPSDLQWRWRUWXUHDQGNLOOKLP+RPR PDQLIHVWDWLRQV LQ FKHFN E\ UHDFWLRQIRUPDWLRQV LQ PHQV PLQGV
KRPLQLOXSXVZKRKDVWKHFRXUDJHWRGLVSXWHLWLQWKHIDFHRI +HQFHLWVV\VWHPRIPHWKRGVE\ZKLFKPDQNLQGLVWREHGULYHQ
DOO WKH HYLGHQFH LQ KLV RZQ OLIH DQG LQ KLVWRU\" 7KLV DJJUHVVLYH WRLGHQWLILFDWLRQVDQGDLPLQKLELWHGORYHUHODWLRQVKLSVKHQFHWKH
FUXHOW\XVXDOO\OLHVLQZDLWIRUVRPHSURYRFDWLRQRUHOVHLWVWHSV UHVWULFWLRQVRQVH[XDOOLIHDQGKHQFHWRRLWVLGHDOFRPPDQGWR
LQWRWKHVHUYLFHRIVRPHRWKHUSXUSRVHWKHDLPRIZKLFKPLJKW ORYH RQHV QHLJKERXU DV RQHVHOI ZKLFK LV UHDOO\ MXVWLILHG E\ WKH
DV ZHOO KDYH EHHQ DFKLHYHG E\ PLOGHU PHDVXUHV ,Q IDFW WKDW QRWKLQJ LV VR FRPSOHWHO\ DW YDULDQFH ZLWK RULJLQDO
FLUFXPVWDQFHV WKDW IDYRXU LW ZKHQ WKRVH IRUFHV LQ WKH PLQG KXPDQ QDWXUH DV WKLV :LWK DOO LWV VWULYLQJ WKLV HQGHDYRXU RI
ZKLFK RUGLQDULO\ LQKLELW LW FHDVH WR RSHUDWH LW DOVR PDQLIHVWV FXOWXUHVKDVVRIDUQRWDFKLHYHGYHU\PXFK&LYLOL]DWLRQH[SHFWV
LWVHOIVSRQWDQHRXVO\DQGUHYHDOVPHQDVVDYDJHEHDVWVWRZKRP WRSUHYHQWWKHZRUVWDWURFLWLHVRIEUXWDOYLROHQFHE\WDNLQJXSRQ
WKHWKRXJKWRIVSDULQJWKHLURZQNLQGLVDOLHQ$Q\RQHZKRFDOOV LWVHOIWKHULJKWWRHPSOR\YLROHQFHDJDLQVWFULPLQDOVEXWWKHODZ
WRPLQGWKHDWURFLWLHVRIWKHHDUO\PLJUDWLRQVRIWKHLQYDVLRQE\ LVQRWDEOHWROD\KDQGVRQWKHPRUHGLVFUHHWDQGVXEWOHIRUPVLQ
WKH+XQVRUE\WKHVRFDOOHG0RQJROVXQGHU-HQJKL].KDQDQG ZKLFKKXPDQDJJUHVVLRQVDUHH[SUHVVHG7KHWLPHFRPHVZKHQ
7DPXUODQHRIWKHVDFNRI-HUXVDOHPE\WKHSLRXV&UXVDGHUV HYHU\ RQH RI XV KDV WR DEDQGRQ WKH LOOXVRU\ DQWLFLSDWLRQV ZLWK
ZKLFKLQRXU\RXWKZHUHJDUGHGRXUIHOORZPHQDQGZKHQZH
UHDOL]H KRZ PXFK KDUGVKLS DQG VXIIHULQJ ZH KDYH EHHQ FDXVHG
LQ OLIH WKURXJK WKHLU LOOZLOO ,W ZRXOG EH XQIDLU KRZHYHU WR
HYHQLQGHHGWKHKRUURUVRIWKHODVW:RUOG:DUZLOOKDYHWRERZ UHSURDFK FXOWXUH ZLWK WU\LQJ WR HOLPLQDWH DOO GLVSXWHV DQG
KLVKHDGKXPEO\EHIRUHWKHWUXWKRIWKLVYLHZRIPDQ FRPSHWLWLRQ IURP KXPDQ FRQFHUQV 7KHVH WKLQJV DUH
XQGRXEWHGO\ LQGLVSHQVDEOH EXW RSSRVLWLRQ LV QRW QHFHVVDULO\ RI D PRWKHU WR KHU PDOH FKLOG 6XSSRVH WKDW SHUVRQDO ULJKWV WR
HQPLW\RQO\LWPD\EHPLVXVHGWRPDNHDQRSHQLQJIRULW PDWHULDO JRRGV DUH GRQH DZD\ ZLWK WKHUH VWLOO UHPDLQ
SUHURJDWLYHV LQ VH[XDO UHODWLRQVKLSV ZKLFK PXVW DURXVH WKH
7KH&RPPXQLVWVEHOLHYHWKH\KDYHIRXQGDZD\RIGHOLYHULQJXV VWURQJHVW UDQFRXU DQG PRVW YLROHQW HQPLW\ DPRQJ PHQ DQG
IURPWKLVHYLO0DQLVZKROHKHDUWHGO\JRRGDQGIULHQGO\WRKLV ZRPHQZKRDUHRWKHUZLVHHTXDO/HWXVVXSSRVHWKLVZHUHDOVR
QHLJKERXU WKH\ VD\ EXW WKH V\VWHP RI SULYDWH SURSHUW\ KDV WR EH UHPRYHG E\ LQVWLWXWLQJ FRPSOHWH OLEHUW\ LQ VH[XDO OLIH VR
FRUUXSWHG KLV QDWXUH 7KH SRVVHVVLRQ RI SULYDWH SURSHUW\ JLYHV WKDW WKH IDPLO\ WKH JHUPFHOO RI FXOWXUH FHDVHG WR H[LVW RQH
SRZHU WR WKH LQGLYLGXDO DQG WKHQFH WKH WHPSWDWLRQ DULVHV WR LOO FRXOG QRW LW LV WUXH IRUHVHH WKH QHZ SDWKV RQ ZKLFK FXOWXUDO
WUHDW KLV QHLJKERXU WKH PDQ ZKR LV H[FOXGHG IURP WKH GHYHORSPHQW PLJKW WKHQ SURFHHG EXW RQH WKLQJ RQH ZRXOG EH
SRVVHVVLRQRISURSHUW\LVREOLJHGWRUHEHOLQKRVWLOLW\DJDLQVWWKH ERXQG WR H[SHFW DQG WKDW LV WKDW WKH LQHIIDFHDEOH IHDWXUH RI
RSSUHVVRU,ISULYDWHSURSHUW\ZHUHDEROLVKHGDOOYDOXDEOHVKHOG KXPDQQDWXUHZRXOGIROORZZKHUHYHULWOHG
LQ FRPPRQ DQG DOO DOORZHG WR VKDUH LQ WKH HQMR\PHQW RI WKHP
LOOZLOODQGHQPLW\ZRXOGGLVDSSHDUIURPDPRQJPHQ6LQFHDOO  $Q\RQH ZKR KDV EHHQ WKURXJK WKH PLVHU\ RI SRYHUW\ LQ
QHHGVZRXOGEHVDWLVILHGQRQHZRXOGKDYHDQ\UHDVRQWRUHJDUG KLV\RXWKDQGKDVHQGXUHGWKHLQGLIIHUHQFHDQG
DQRWKHU DV DQ HQHP\ DOO ZRXOG ZLOOLQJO\ XQGHUWDNH WKH ZRUN DUURJDQFHRIWKRVHZKRKDYHSRVVHVVLRQVVKRXOGEHH[HPSW
ZKLFK LV QHFHVVDU\ , KDYH QR FRQFHUQ ZLWK DQ\ HFRQRPLF IURPWKHVXVSLFLRQWKDWKHKDVQRXQGHUVWDQGLQJRIRU
FULWLFLVPV RI WKH FRPPXQLVWLF V\VWHP  FDQQRW HQTXLUH LQWR JRRGZLOO WRZDUGV WKH HQGHDYRXUV PDGH WR ILJKW WKH
ZKHWKHU WKH DEROLWLRQ RI SULYDWH SURSHUW\ LV DGYDQWDJHRXV DQG HFRQRPLF LQHTXDOLW\ RI PHQ DQG DOO WKDW LW OHDGV WR 7R EH
H[SHGLHQW%XW,DPDEOHWRUHFRJQL]HWKDWSV\FKRORJLFDOO\LWLV VXUH
IRXQGHGRQDQXQWHQDEOHLOOXVLRQ%\DEROLVKLQJSULYDWHSURSHUW\ LI DQ DWWHPSW LV PDGH WR EDVH WKLV ILJKW XSRQ DQ DEVWUDFW
RQH GHSULYHV WKH KXPDQ ORYH RI DJJUHVVLRQ RI RQH RI LWV GHPDQGIRUHTXDOLW\IRUDOOLQWKHQDPHRIMXVWLFHWKHUHLV
LQVWUXPHQWV D VWURQJ RQH XQGRXEWHGO\ EXW DVVXUHGO\ QRW WKH D YHU\ REYLRXV REMHFWLRQ WR EH PDGH QDPHO\ WKDW QDWXUH
VWURQJHVW,WLQQRZD\DOWHUVWKHLQGLYLGXDOGLIIHUHQFHVLQSRZHU EHJDQWKHLQMXVWLFHE\WKHKLJKO\XQHTXDOZD\LQZKLFK
DQGLQIOXHQFHZKLFKDUHWXUQHGE\DJJUHVVLYHQHVVWRLWVRZQXVH VKH HQGRZV LQGLYLGXDOV SK\VLFDOO\ DQG PHQWDOO\ IRU ZKLFK
QRU GRHV LW FKDQJH WKH QDWXUH RI WKH LQVWLQFW LQ DQ\ ZD\ 7KLV WKHUHLVQRKHOS
LQVWLQFWGLGQRWDULVHDVWKHUHVXOWRISURSHUW\LWUHLJQHGDOPRVW 0HQFOHDUO\GRQRWILQGLWHDV\WRGRZLWKRXWVDWLVIDFWLRQRIWKLV
VXSUHPH LQ SULPLWLYH WLPHV ZKHQ SRVVHVVLRQV ZHUH VWLOO WHQGHQF\ WR DJJUHVVLRQ WKDW LV LQ WKHP ZKHQ GHSULYHG RI
H[WUHPHO\ VFDQW\ LW VKRZV LWVHOI DOUHDG\ LQ WKH QXUVHU\ ZKHQ VDWLVIDFWLRQRILWWKH\DUHLOODWHDVH7KHUHLVDQDGYDQWDJHQRWWR
SRVVHVVLRQVKDYHKDUGO\JURZQRXWRIWKHLURULJLQDODQDOVKDSH EH XQGHUYDOXHG LQ WKH H[LVWHQFH RI VPDOOHU FRPPXQLWLHV
LW LV DW WKH ERWWRP RI DOO WKH UHODWLRQV RI DIIHFWLRQ DQG ORYH WKURXJK ZKLFK WKH DJJUHVVLYH LQVWLQFW FDQ ILQG DQ RXWOHW LQ
EHWZHHQKXPDQEHLQJVSRVVLEO\ZLWKWKHVLQJOHH[FHSWLRQRIWKDW HQPLW\WRZDUGVWKRVHRXWVLGHWKHJURXS,WLVDOZD\VSRVVLEOHWR
XQLWHFRQVLGHUDEOHQXPEHUVRIPHQLQORYHWRZDUGVRQHDQRWKHU HQWLUHO\
VR ORQJ DV WKHUH DUH VWLOO VRPH UHPDLQLQJ DV REMHFWV IRU
DJJUHVVLYH PDQLIHVWDWLRQV , RQFH LQWHUHVWHG P\VHOI LQ WKH ,I FLYLOL]DWLRQ UHTXLUHV VXFK VDFULILFHV QRW RQO\ RI VH[XDOLW\ EXW
SHFXOLDUIDFWWKDWSHRSOHVZKRVHWHUULWRULHVDUHDGMDFHQWDQGDUH DOVR RI WKH DJJUHVVLYH WHQGHQFLHV LQ PDQNLQG ZH FDQ EHWWHU
RWKHUZLVHFORVHO\UHODWHGDUHDOZD\VDWIHXGZLWKDQGULGLFXOLQJ XQGHUVWDQGZK\LWVKRXOGEHVRKDUGIRUPHQWRIHHOKDSS\LQLW
HDFK RWKHU DV IRU LQVWDQFH WKH 6SDQLDUGV DQG WKH 3RUWXJXHVH ,QDFWXDOIDFWSULPLWLYHPDQZDVEHWWHURIILQWKLVUHVSHFWIRUKH
WKH1RUWKDQG6RXWK*HUPDQVWKH(QJOLVKDQGWKH6FRWFKDQG NQHZ QRWKLQJ RI DQ\ UHVWULFWLRQV RQ KLV LQVWLQFWV $V D VHWRII
VR RQ , JDYH LW WKH QDPH RI QDUFLVVLVP LQ UHVSHFW RI PLQRU DJDLQVW WKLV KLV SURVSHFWV RI HQMR\LQJ KLV KDSSLQHVV IRU DQ\
GLIIHUHQFHVZKLFKGRHVQRWGRPXFKWRH[SODLQLW2QHFDQQRZ OHQJWK RI WLPH ZHUH YHU\ VOLJKW &LYLOL]HG PDQ KDV H[FKDQJHG
VHH WKDW LW LV D FRQYHQLHQW DQG UHODWLYHO\ KDUPOHVV IRUP RI VRPHSDUWRIKLVFKDQFHVRIKDSSLQHVVIRUDPHDVXUHRIVHFXULW\
VDWLVIDFWLRQ IRU DJJUHVVLYH WHQGHQFLHV WKURXJK ZKLFK FRKHVLRQ :H ZLOO QRW IRUJHW KRZHYHU WKDW LQ WKH SULPDO IDPLO\ RQO\ WKH
DPRQJVW WKH PHPEHUV RI D JURXS LV PDGH HDVLHU 7KH -HZLVK KHDG RI LW HQMR\HG WKLV LQVWLQFWXDO IUHHGRP WKH RWKHU PHPEHUV
SHRSOH VFDWWHUHG LQ DOO GLUHFWLRQV DV WKH\ DUH KDYH LQ WKLV ZD\ OLYHG LQ VODYLVK WKUDOGRP 7KH DQWLWKHVLV EHWZHHQ D PLQRULW\
UHQGHUHGVHUYLFHVZKLFKGHVHUYHUHFRJQLWLRQWRWKHGHYHORSPHQW HQMR\LQJ FXOWXUDO DGYDQWDJHV DQG D PDMRULW\ ZKR DUH UREEHG RI
RIFXOWXUHLQWKHFRXQWULHVZKHUHWKH\VHWWOHGEXWXQIRUWXQDWHO\ WKHP ZDV WKHUHIRUH PRVW H[WUHPH LQ WKDW SULPHYDO SHULRG RI
QRW DOO WKH PDVVDFUHV RI -HZV LQ WKH 0LGGOH $JHV VXIILFHG WR FXOWXUH :LWK UHJDUG WR WKH SULPLWLYH KXPDQ W\SHV OLYLQJ DW WKH
SURFXUH SHDFH DQG VHFXULW\ IRU WKHLU &KULVWLDQ FRQWHPSRUDULHV SUHVHQW WLPH FDUHIXO LQYHVWLJDWLRQ KDV UHYHDOHG WKDW WKHLU
2QFHWKHDSRVWOH3DXOKDGODLGGRZQXQLYHUVDOORYHEHWZHHQDOO LQVWLQFWXDO OLIH LV E\ QR PHDQV WR EH HQYLHG RQ DFFRXQW RI LWV
PHQDVWKHIRXQGDWLRQRIKLV&KULVWLDQFRPPXQLW\WKHLQHYLWDEOH IUHHGRP LW LV VXEMHFW WR UHVWULFWLRQV RI D GLIIHUHQW NLQG EXW
FRQVHTXHQFHLQ&KULVWLDQLW\ZDVWKHXWPRVWLQWROHUDQFHWRZDUGV SHUKDSV HYHQ PRUH ULJRURXV WKDQ LV WKDW RI PRGHUQ FLYLOL]HG
DOO ZKR UHPDLQHG RXWVLGH RI LW WKH 5RPDQV ZKR KDG QRW PDQ
IRXQGHG WKHLU VWDWH RQ ORYH ZHUH QRW JLYHQ WR ODFN RI UHOLJLRXV
WROHUDWLRQ DOWKRXJK UHOLJLRQ ZDV D FRQFHUQ RI WKH VWDWH DQG WKH ,QULJKWO\ILQGLQJIDXOWDVZHWKXVGRZLWKRXUSUHVHQWVWDWHRI
VWDWHZDVSHUPHDWHGWKURXJKDQGWKURXJKZLWKLW1HLWKHUZDVLW FLYLOL]DWLRQ IRU VR LQDGHTXDWHO\ SURYLGLQJ XV ZLWK ZKDW ZH
DQ XQDFFRXQWDEOH FKDQFH WKDW WKH GUHDP RI D *HUPDQ ZRUOG UHTXLUHWRPDNHXVKDSS\LQOLIHDQGIRUWKHDPRXQWRIVXIIHULQJ
GRPLQLRQ HYRNHG D FRPSOHPHQWDU\ PRYHPHQW WRZDUGV DQWL RI D SUREDEO\ DYRLGDEOH QDWXUH LW OD\V XV RSHQ WRLQ GRLQJ RXU
VHPLWLVPDQGLWLVTXLWHLQWHOOLJLEOHWKDWWKHDWWHPSWWRHVWDEOLVKD XWPRVWWROD\EDUHWKHURRWVRILWVGHILFLHQFLHVE\RXUXQVSDULQJ
QHZ FRPPXQLVWLF W\SH RI FXOWXUH LQ 5XVVLD VKRXOG ILQG FULWLFLVPVZHDUHXQGRXEWHGO\H[HUFLVLQJRXUMXVWULJKWVDQGQRW
SV\FKRORJLFDO VXSSRUW LQ WKH SHUVHFXWLRQ RI WKH ERXUJHRLV 2QH VKRZLQJRXUVHOYHVHQHPLHVRIFXOWXUH:HPD\H[SHFWWKDWLQWKH
RQO\ ZRQGHUV ZLWK VRPH FRQFHUQ KRZHYHU KRZ WKH 6RYLHWV FRXUVHRIWLPHFKDQJHVZLOOEHFDUULHGRXWLQRXUFLYLOL]DWLRQVR
ZLOO PDQDJH ZKHQ WKH\ KDYH H[WHUPLQDWHG WKHLU ERXUJHRLV WKDWLWEHFRPHVPRUHVDWLVI\LQJWRRXUQHHGVDQGQRORQJHURSHQ
WRWKHUHSURDFKHVZHKDYHPDGHDJDLQVWLW%XWSHUKDSVZHVKDOO
DOVR DFFXVWRP RXUVHOYHV WR WKH LGHD WKDW WKHUH DUH FHUWDLQ
GLIILFXOWLHVLQKHUHQWLQWKHYHU\QDWXUHRIFXOWXUHZKLFKZLOOQRW
\LHOGWRDQ\HIIRUWVDWUHIRUP2YHUDQGDERYHWKHREOLJDWLRQVRI 9,
SXWWLQJ UHVWULFWLRQV XSRQ RXU LQVWLQFWV ZKLFK ZH VHH WR EH
LQHYLWDEOH ZH DUH LPPLQHQWO\ WKUHDWHQHG ZLWK WKH GDQJHUV RI D
VWDWH RQH PD\ FDOO OD PLVHUH SV\FKRORJLTXH RI JURXSV 7KLV 1(9(5 EHIRUH LQ DQ\ RI P\ SUHYLRXV ZULWLQJV KDYH , KDG WKH
GDQJHU LV PRVW PHQDFLQJ ZKHUH WKH VRFLDO IRUFHV RI FRKHVLRQ IHHOLQJ VR VWURQJO\ DV , KDYH QRZ WKDW ZKDW , DP GHVFULELQJ LV
FRQVLVWSUHGRPLQDQWO\RILGHQWLILFDWLRQVRIWKHLQGLYLGXDOVLQWKH FRPPRQNQRZOHGJHWKDW,DPUHTXLVLWLRQLQJSDSHUDQGLQNDQG
JURXS ZLWK RQH DQRWKHU ZKLOVW OHDGLQJ SHUVRQDOLWLHV IDLO WR LQGXHFRXUVHWKHODERXURIFRPSRVLWRUVDQGSULQWHUVLQRUGHUWR
DFTXLUHWKHVLJQLILFDQFHWKDWVKRXOGIDOOWRWKHPLQWKHSURFHVVRI H[SRXQGWKLQJVWKDWLQWKHPVHOYHVDUHREYLRXV)RUWKLVUHDVRQ
JURXSIRUPDWLRQ 7KH VWDWH RI FLYLOL]DWLRQ LQ $PHULFD DW WKH LILWVKRXOGDSSHDUWKDWWKHUHFRJQLWLRQRIDVSHFLDOLQGHSHQGHQW
SUHVHQWGD\RIIHUVDJRRGRSSRUWXQLW\IRUVWXG\LQJWKLVLQMXULRXV LQVWLQFWRIDJJUHVVLRQZRXOGHQWDLODPRGLILFDWLRQRIWKHSV\FKR
HIIHFW RI FLYLOL]DWLRQ ZKLFK ZH KDYH UHDVRQ WR GUHDG %XW , ZLOO DQDO\WLFDO WKHRU\ RI LQVWLQFWV , VKRXOG EH JODG HQRXJK WR VHL]H
UHVLVW WKH WHPSWDWLRQ WR HQWHU XSRQ D FULWLFLVP RI $PHULFDQ XSRQWKHLGHD
FXOWXUH , KDYH QR GHVLUH WR JLYH WKH LPSUHVVLRQ WKDW , ZRXOG
HPSOR\$PHULFDQPHWKRGVP\VHOI :H VKDOO VHH WKDW WKLV LV QRW VR WKDW LW LV PHUHO\ D PDWWHU RI
FRPLQJ WR FORVHU TXDUWHUV ZLWK D FRQFOXVLRQ WR ZKLFK ZH ORQJ
&I*URXS3V\FKRORJ\DQG$QDO\VLVRIWKH(JR DJR FRPPLWWHG RXUVHOYHV DQG IROORZLQJ LW RXW WR LWV ORJLFDO
FRQVHTXHQFHV 7KH ZKROH RI DQDO\WLF WKHRU\ KDV HYROYHG
JUDGXDOO\HQRXJKEXWWKHWKHRU\RILQVWLQFWVKDVJURSHGLWVZD\
IRUZDUGXQGHUJUHDWHUGLIILFXOWLHVWKDQDQ\RWKHUSDUWRILW$QG
\HW D WKHRU\ RI LQVWLQFWV ZDV VR LQGLVSHQVDEOH IRU WKH UHVW WKDW
VRPHWKLQJ KDG WR EH DGRSWHG LQ SODFH RI LW ,Q P\ XWWHU
SHUSOH[LW\DWWKHEHJLQQLQJ,WRRNDVP\VWDUWLQJSRLQWWKHSRHW
SKLORVRSKHU 6FKLOOHUV DSKRULVP WKDW KXQJHU DQG ORYH PDNH WKH
ZRUOGJRURXQG+XQJHUZRXOGVHUYHWRUHSUHVHQWWKRVHLQVWLQFWV
ZKLFK DLP DW SUHVHUYDWLRQ RI WKH LQGLYLGXDO ORYH VHHNV IRU
REMHFWV LWV FKLHI IXQFWLRQ ZKLFK LV IDYRXUHG LQ HYHU\ ZD\ E\
QDWXUH LV SUHVHUYDWLRQ RI WKH VSHFLHV 7KXV ILUVW DURVH WKH
FRQWUDVW EHWZHHQ HJR LQVWLQFWV DQG REMHFW LQVWLQFWV )RU WKH
HQHUJ\ RI WKH ODWWHU LQVWLQFWV DQG H[FOXVLYHO\ IRU WKHP ,
LQWURGXFHG WKH WHUP OLELGR DQ DQWLWKHVLV ZDV WKXV IRUPHG WKH HJR WR JXDUG LWVHOI DJDLQVW VH[XDOLW\ EXW WKH FRQFHSW RI WKH
EHWZHHQ WKH HJR LQVWLQFWV DQG WKH OLELGLQDO LQVWLQFWV GLUHFWHG OLELGRZDVMHRSDUGL]HG6LQFHWKHHJRLQVWLQFWVZHUHIRXQGWREH
WRZDUGV REMHFWV L H ORYH LQ LWV ZLGHVW VHQVH 2QH RI WKHVH OLELGLQDO DV ZHOO LW VHHPHG IRU D WLPH LQHYLWDEOH WKDW OLELGR
REMHFWLQVWLQFWVWKHVDGLVWLFFHUWDLQO\VWRRGRXWIURPWKHUHVWLQ VKRXOG EHFRPH V\QRQ\PRXV ZLWK LQVWLQFWXDO HQHUJ\ LQ JHQHUDO
WKDW LWV DLP ZDV VR YHU\ XQORYLQJ PRUHRYHU LW FOHDUO\ DOOLHG DV&*-XQJKDGSUHYLRXVO\DGYRFDWHG<HWWKHUHVWLOOUHPDLQHG
LWVHOILQPDQ\RILWVDVSHFWVZLWKWKHHJRLQVWLQFWVDQGLWVFORVH LQ PH D NLQG RI FRQYLFWLRQ IRU ZKLFK DV \HW WKHUH ZHUH QR
NLQVKLS ZLWK LQVWLQFWV RI PDVWHU\ ZLWKRXW DQ\ OLELGLQDO SXUSRVH JURXQGVWKDWWKHLQVWLQFWVFRXOGQRWDOOEHRIWKHVDPHQDWXUH,
FRXOG QRW EH FRQFHDOHG EXW WKHVH DPELJXLWLHV FRXOG EH PDGH WKH QH[W VWHS LQ %H\RQG WKH 3OHDVXUH 3ULQFLSOH  
RYHUFRPH LQ VSLWH RI WKHP VDGLVP SODLQO\ EHORQJHG WR VH[XDO ZKHQ WKH UHSHWLWLRQFRPSXOVLRQ DQG WKH FRQVHUYDWLYH FKDUDFWHU
OLIHWKHJDPHRIFUXHOW\FRXOGWDNHWKHSODFHRIWKHJDPHRIORYH RI LQVWLQFWXDO OLIH ILUVW VWUXFN PH 2Q WKH EDVLV RI VSHFXODWLRQV
1HXURVLV DSSHDUHG DV WKH RXWFRPH RI D VWUXJJOH EHWZHHQ WKH FRQFHUQLQJ WKH RULJLQ RI OLIH DQG RI ELRORJLFDO SDUDOOHOV , GUHZ
LQWHUHVWVRIVHOISUHVHUYDWLRQDQGWKHFODLPVRIOLELGRDVWUXJJOH WKH FRQFOXVLRQ WKDW EHVLGH WKH LQVWLQFW SUHVHUYLQJ WKH RUJDQLF
LQ ZKLFK WKH HJR ZDV YLFWRULRXV EXW DW WKH SULFH RI JUHDW VXEVWDQFH DQG ELQGLQJ LW LQWR HYHU ODUJHU XQLWV  WKHUH PXVW
VXIIHULQJDQGUHQXQFLDWLRQV H[LVWDQRWKHULQDQWLWKHVLVWRWKLVZKLFKZRXOGVHHNWRGLVVROYH
WKHVHXQLWVDQGUHLQVWDWHWKHLUDQWHFHGHQWLQRUJDQLFVWDWH7KDWLV
WR VD\ D GHDWK LQVWLQFW DV ZHOO DV (URV WKH SKHQRPHQD RI OLIH
(YHU\DQDO\VWZLOODGPLWWKDWQRQHRIWKLVHYHQQRZUHDGVOLNHD ZRXOGWKHQEHH[SOLFDEOHIURPWKHLQWHUSOD\RIWKHWZRDQGWKHLU
VWDWHPHQW ORQJ VLQFH UHFRJQL]HG DV HUURQHRXV $OO WKH VDPH FRXQWHUDFWLQJHIIHFWVRQHDFKRWKHU,WZDVQRWHDV\KRZHYHUWR
PRGLILFDWLRQVKDGWREHPDGHDVRXUUHVHDUFKHVDGYDQFHGIURP GHPRQVWUDWHWKHZRUNLQJRIWKLVK\SRWKHWLFDOGHDWKLQVWLQFW7KH
WKH UHSUHVVHG WR WKH UHSUHVVLQJ IURP WKH REMHFW LQVWLQFWV WR WKH PDQLIHVWDWLRQV RI (URV ZHUH FRQVSLFXRXV DQG DXGLEOH HQRXJK
HJR$FDUGLQDOSRLQWLQWKLVDGYDQFHZDVWKHLQWURGXFWLRQRIWKH RQHPLJKWDVVXPHWKDWWKHGHDWKLQVWLQFWZRUNHGVLOHQWO\ZLWKLQ
FRQFHSWRIQDUFLVVLVPLHWKHLGHDWKDWOLELGRFDWKHFWVWKHHJR WKHRUJDQLVPWRZDUGVLWVGLVLQWHJUDWLRQEXWWKDWRIFRXUVHZDV
LWVHOI WKDW LWV ILUVW GZHOOLQJSODFH ZDV LQ WKH HJR DQG WKDW WKH QR SURRI 7KH LGHD WKDW SDUW RI WKH LQVWLQFW EHFDPH GLUHFWHG
ODWWHU UHPDLQV WR VRPH H[WHQW LWV SHUPDQHQW KHDGTXDUWHUV 7KLV WRZDUGVWKHRXWHUZRUOGDQGWKHQVKRZHGLWVHOIDVDQLQVWLQFWRI
QDUFLVVLVWLF OLELGR WXUQV LQ WKH GLUHFWLRQ RI REMHFWV WKXV DJJUHVVLRQDQGGHVWUXFWLRQFDUULHGXVDVWHSIXUWKHU7KHLQVWLQFW
EHFRPLQJ REMHFWOLELGR DQG FDQ WUDQVIRUP LWVHOI EDFN LQWR ZRXOGWKXVLWVHOIKDYHEHHQSUHVVHGLQWRWKHVHUYLFHRI(URVLQ
QDUFLVVLVWLFOLELGR7KHFRQFHSWRIQDUFLVVLVPPDGHLWSRVVLEOHWR WKDW WKH RUJDQLVP ZRXOG EH GHVWUR\LQJ VRPHWKLQJ DQLPDWH RU
FRQVLGHU WKH WUDXPDWLFQHXURVHV DV ZHOO DV PDQ\ GLVHDVHV LQDQLPDWH RXWVLGH LWVHOI LQVWHDG RI LWVHOI &RQYHUVHO\ DQ\
ERUGHULQJRQWKHSV\FKRVHVDQGDOVRWKHODWWHUWKHPVHOYHVIURP FHVVDWLRQ RI WKLV IORZ RXWZDUGV PXVW KDYH WKH HIIHFW RI
WKH SV\FKRDQDO\WLF DQJOH ,W ZDV QRW QHFHVVDU\ WR DEDQGRQ WKH LQWHQVLI\LQJWKHVHOIGHVWUXFWLRQZKLFKLQDQ\FDVHZRXOGDOZD\V
YLHZ WKDW WKH WUDQVIHUHQFHQHXURVHV DUH DWWHPSWV RQ WKH SDUW RI EHJRLQJRQZLWKLQ)URPWKLVH[DPSOHRQHFRXOGWKHQVXUPLVH
WKDW WKH WZR NLQGV RI LQVWLQFWV VHOGRPSHUKDSV QHYHUDSSHDU LQ XQGHUVWDQG KRZ ZH FRXOG KDYH RYHUORRNHG WKH XQLYHUVDOLW\ RI
LVRODWLRQ EXW DOZD\V PLQJOH ZLWK HDFK RWKHU LQ GLIIHUHQW YHU\ QRQHURWLF DJJUHVVLRQ DQG GHVWUXFWLRQ DQG FRXOG KDYH RPLWWHG
YDU\LQJSURSRUWLRQVDQGVRPDNHWKHPVHOYHVXQUHFRJQL]DEOHWR WR JLYH LW LWV GXH VLJQLILFDQFH LQ RXU LQWHUSUHWDWLRQ RI OLIH ,W LV
XV 6DGLVP ORQJ VLQFH NQRZQ WR XV DV D FRPSRQHQWLQVWLQFW RI WUXHWKDWWKHGHVWUXFWLYHWUHQGWKDWLVGLUHFWHGLQZDUGVZKHQLWLV
VH[XDOLW\ZRXOGUHSUHVHQWDSDUWLFXODUO\VWURQJDGPL[WXUHRIWKH QRW HURWLFDOO\ WLQJHG XVXDOO\ HOXGHV RXU SHUFHSWLRQV  , FDQ
LQVWLQFW RI GHVWUXFWLRQ LQWR WKH ORYH LPSXOVH ZKLOH LWV UHPHPEHU P\ RZQ GHIHQVLYH DWWLWXGH ZKHQ WKH LGHD RI DQ
FRXQWHUSDUWPDVRFKLVPZRXOGEHDQDOOLDQFHEHWZHHQVH[XDOLW\ LQVWLQFW RI GHVWUXFWLRQ ILUVW PDGH LWV DSSHDUDQFH LQ SV\FKR
DQG WKH GHVWUXFWLRQ DW ZRUN ZLWKLQ WKH VHOI LQ FRQVHTXHQFH RI DQDO\WLFDO OLWHUDWXUH DQG KRZ ORQJ LW WRRN XQWLO , EHFDPH
ZKLFK WKH RWKHUZLVH LPSHUFHSWLEOH GHVWUXFWLYH WUHQG EHFDPH DFFHVVLEOH WR LW 7KDW RWKHUV VKRXOG KDYH VKRZQ WKH VDPH
GLUHFWO\HYLGHQWDQGSDOSDEOH UHVLVWDQFH DQG VWLOO VKRZ LW VXUSULVHV PH OHVV 7KRVH ZKR ORYH
IDLU\WDOHV GR QRW OLNH LW ZKHQ SHRSOH VSHDN RI WKH LQQDWH
WHQGHQFLHV LQ PDQNLQG WRZDUGV DJJUHVVLRQ GHVWUXFWLRQ DQG LQ
 7KH FRQWUDGLFWLRQ EHWZHHQ WKH WLUHOHVV WHQGHQF\ RI (URV DGGLWLRQ FUXHOW\ )RU *RG KDV PDGH WKHP LQ KLV RZQ LPDJH
WRVSUHDGHYHUIXUWKHUDQGWKHJHQHUDOFRQVHUYDWLYHQDWXUH ZLWK KLV RZQ SHUIHFWLRQV QR RQH ZDQWV WR EH UHPLQGHG KRZ
RIWKHLQVWLQFWVKHUHEHFRPHVYHU\QRWLFHDEOHLWZRXOGVHUYH KDUGLWLVWRUHFRQFLOHWKHXQGHQLDEOHH[LVWHQFHLQVSLWHRIDOOWKH
DVWKHVWDUWLQJSRLQWRIHQTXLULHVLQWRIXUWKHUSUREOHPV SURWHVWDWLRQV RI &KULVWLDQ 6FLHQFHRI HYLO ZLWK +LV RPQLSRWHQFH
DQGVXSUHPHJRRGQHVV7KHGHYLOLVLQIDFWWKHEHVWZD\RXWLQ
7KH DVVXPSWLRQ RI WKH H[LVWHQFH RI D GHDWK LQVWLQFW RU D DFTXLWWDORI*RGKHFDQEHXVHGWRSOD\WKHVDPHHFRQRPLFUROH
GHVWUXFWLRQ LQVWLQFW KDV URXVHG RSSRVLWLRQ HYHQ LQ DQDO\WLFDO RIRXWOHWDV-HZVLQWKHZRUOGRI$U\DQLGHDOV%XWHYHQVRRQH
FLUFOHV,NQRZWKDWWKHUHLVDJUHDWWHQGHQF\WRDVFULEHDOOWKDWLV FDQ MXVW DV ZHOO KROG *RG UHVSRQVLEOH IRU WKH H[LVWHQFH RI WKH
GDQJHURXVDQGKRVWLOHLQORYHUDWKHUWRDIXQGDPHQWDOELSRODULW\ GHYLODVIRUWKHHYLOKHSHUVRQLILHV,QYLHZRIWKHVHGLIILFXOWLHV
LQ LWV RZQ QDWXUH 7KH FRQFHSWLRQV , KDYH VXPPDUL]HG KHUH , LW LV H[SHGLHQW IRU HYHU\ PDQ WR PDNH KXPEOH REHLVDQFH RQ
ILUVWSXWIRUZDUGRQO\WHQWDWLYHO\EXWLQWKHFRXUVHRIWLPHWKH\ VXLWDEOHRFFDVLRQVLQKRQRXURIWKHKLJKPLQGHGQDWXUHRIPHQ
KDYHZRQVXFKDKROGRYHUPHWKDW,FDQQRORQJHUWKLQNLQDQ\ LWZLOODVVLVWKLPWREHFRPHXQLYHUVDOO\EHORYHGDQGPXFKVKDOO
RWKHU ZD\ 7R P\ PLQG WKH\ DUH WKHRUHWLFDOO\ IDU PRUH IUXLWIXO EHIRUJLYHQXQWRKLPRQDFFRXQWRILW
WKDQ DQ\ RWKHUV LW LV SRVVLEOH WR HPSOR\ WKH\ SURYLGH XV ZLWK
WKDW VLPSOLILFDWLRQ ZLWKRXW HLWKHU LJQRULQJ RU GRLQJ YLROHQFH WR ,Q*RHWKHV0HSKLVWRSKHOHVZHKDYHDTXLWHH[FHSWLRQDOO\
WKH IDFWV ZKLFK LV ZKDW ZH VWULYH DIWHU LQ VFLHQWLILF ZRUN , VWULNLQJLGHQWLILFDWLRQRIWKHSULQFLSOHRIHYLOZLWK
NQRZWKDWZHKDYHDOZD\VKDGEHIRUHRXUH\HVPDQLIHVWDWLRQVRI WKHLQVWLQFWRIGHVWUXFWLRQ
WKH GHVWUXFWLRQ LQVWLQFW IXVHG ZLWK HURWLVP GLUHFWHG RXWZDUGV
DQG LQZDUGV LQ VDGLVP DQG PDVRFKLVP EXW , FDQ QR ORQJHU $OOHQWLWLHVWKDWEH'HVHUYHWKHLUHQGQRQHQWLW\
LQLWVDLP DQGGLUHFWHGWRZDUGVREMHFWVLVFRPSHOOHGWRSURYLGH
6RDOOWKDW\RXQDPHVLQGHVWUXFWLRQ WKHHJRZLWKVDWLVIDFWLRQRILWVQHHGVDQGZLWKSRZHURYHU
:LFNHGQHVVEULHIO\SURYHVWREH QDWXUH6LQFHWKHDVVXPSWLRQRILWVH[LVWHQFHLVEDVHGHVVHQWLDOO\
7KHQDWLYHHOHPHQWIRUPH RQWKHRUHWLFDOJURXQGVLWPXVWEHFRQIHVVHGWKDWLWLVQRWHQWLUHO\
SURRIDJDLQVWWKHRUHWLFDOREMHFWLRQV%XWWKLVLVKRZWKLQJV
$VKLVDGYHUVDU\WKHGHYLOKLPVHOIFLWHVQRWZKDWLVKRO\DQG DSSHDUWRXVQRZLQWKHSUHVHQWVWDWHRIRXUNQRZOHGJHIXWXUH
JRRGEXWWKHSRZHULQQDWXUHZRUNLQJWRZDUGVWKH UHVHDUFKDQGUHIOHFWLRQZLOOXQGRXEWHGO\EULQJIXUWKHUOLJKW
FUHDWLRQDQGUHQHZDORIOLIHWKDWLV(URV ZKLFKZLOOGHFLGHWKHTXHVWLRQ

)URPDLUIURPZDWHUJHUPVLQWKRXVDQGV
$VIURPWKHVRLOEUHDNIRUWKEUHDNIUHH  2XU SUHVHQW SRLQW RI YLHZ FDQ EH URXJKO\ H[SUHVVHG LQ
'U\ZHWZDUPFROGDSXOOXODWLRQ WKHVWDWHPHQWWKDWOLELGRSDUWLFLSDWHVLQHYHU\LQVWLQFWXDO
+DG,QRWODLGRQIODPHDUHVHUYDWLRQ PDQLIHVWDWLRQEXWWKDWQRWHYHU\WKLQJLQWKDWPDQLIHVWDWLRQ
1RWKLQJZHUHVHWDSDUWIRUPH LVOLELGR

,QDOOWKDWIROORZV,WDNHXSWKHVWDQGSRLQWWKDWWKHWHQGHQF\WR
7KHQDPHOLELGRFDQDJDLQEHXVHGWRGHQRWHWKHPDQLIHVWDWLRQV DJJUHVVLRQ LV DQ LQQDWH LQGHSHQGHQW LQVWLQFWXDO GLVSRVLWLRQ LQ
RIWKHSRZHURI(URVLQFRQWUDGLVWLQFWLRQWRWKHHQHUJ\RIWKH PDQDQG,FRPHEDFNQRZWRWKHVWDWHPHQWWKDWLWFRQVWLWXWHVWKH
GHDWKLQVWLQFW:HPXVWFRQIHVVWKDWLWLVPRUHGLIILFXOWIRUXV PRVWSRZHUIXOREVWDFOHWRFXOWXUH$WRQHSRLQWLQWKHFRXUVHRI
WRGHWHFWWKHODWWHUDQGWRDJUHDWH[WHQWZHFDQPHUHO\ WKLVGLVFXVVLRQWKHLGHDWRRNSRVVHVVLRQRIXVWKDWFXOWXUHZDVD
FRQMHFWXUHLWVH[LVWHQFHDVDEDFNJURXQGWR(URVDOVRWKDWLW SHFXOLDUSURFHVVSDVVLQJRYHUKXPDQOLIHDQGZHDUHVWLOOXQGHU
HOXGHVXVZKHUHYHULWLVQRWEHWUD\HGE\DIXVLRQZLWK(URV,Q WKH LQIOXHQFH RI WKLV LGHD :H PD\ DGG WR WKLV WKDW WKH SURFHVV
VDGLVPZKHUHLWEHQGVWKHHURWLFDLPWRLWVRZQZLOODQG\HWDW SURYHV WR EH LQ WKH VHUYLFH RI (URV ZKLFK DLPV DW ELQGLQJ
WKHVDPHWLPHJUDWLILHVWKHVH[XDOFUDYLQJFRPSOHWHO\ZHFDQ WRJHWKHU VLQJOH KXPDQ LQGLYLGXDOV WKHQ IDPLOLHV WKHQ WULEHV
REWDLQWKHFOHDUHVWLQVLJKWLQWRLWVQDWXUHDQGLWVUHODWLRQWR(URV UDFHV QDWLRQV LQWR RQH JUHDW XQLW\ WKDW RI KXPDQLW\ :K\ WKLV
%XWHYHQZKHUHLWVKRZVLWVHOIZLWKRXWDQ\VH[XDOSXUSRVHHYHQ KDVWREHGRQHZHGRQRWNQRZLWLVVLPSO\WKHZRUNRI(URV
LQWKHEOLQGHVWIUHQ]\RIGHVWUXFWLYHQHVVRQHFDQQRWLJQRUHWKH 7KHVHPDVVHVRIPHQPXVWEHERXQGWRRQHDQRWKHUOLELGLQDOO\
IDFWWKDWVDWLVIDFWLRQRILWLVDFFRPSDQLHGE\DQH[WUDRUGLQDULO\ QHFHVVLW\ DORQH WKH DGYDQWDJHV RI FRPPRQ ZRUN ZRXOG QRW
LQWHQVHQDUFLVVLVWLFHQMR\PHQWGXHWRWKHIXOILOPHQWLWEULQJVWR KROG WKHP WRJHWKHU 7KH QDWXUDO LQVWLQFW RI DJJUHVVLYHQHVV LQ
WKHHJRRILWVROGHVWRPQLSRWHQFHZLVKHV7KHLQVWLQFWRI PDQWKHKRVWLOLW\RIHDFKRQHDJDLQVWDOODQGRIDOODJDLQVWHDFK
GHVWUXFWLRQZKHQWHPSHUHGDQGKDUQHVVHG DVLWZHUHLQKLELWHG RQH RSSRVHV WKLV SURJUDP RI FLYLOL]DWLRQ 7KLV LQVWLQFW RI
DJJUHVVLRQLVWKHGHULYDWLYHDQGPDLQUHSUHVHQWDWLYHRIWKHGHDWK
LQVWLQFWZHKDYHIRXQGDORQJVLGHRI(URVVKDULQJKLVUXOHRYHU
WKHHDUWK$QGQRZLWVHHPVWRPHWKHPHDQLQJRIWKHHYROXWLRQ
RI FXOWXUH LV QR ORQJHU D ULGGOH WR XV ,W PXVW SUHVHQW WR XV WKH 9,,
VWUXJJOH EHWZHHQ (URV DQG GHDWK EHWZHHQ WKH LQVWLQFWV RI OLIH
DQG WKH LQVWLQFWV RI GHVWUXFWLRQ DV LW ZRUNV LWVHOI RXW LQ WKH
KXPDQVSHFLHV7KLVVWUXJJOHLVZKDWDOOOLIHHVVHQWLDOO\FRQVLVWV :+< GR WKH DQLPDOV NLQ WR RXUVHOYHV QRW PDQLIHVW DQ\ VXFK
RIDQGVRWKHHYROXWLRQRIFLYLOL]DWLRQPD\EHVLPSO\GHVFULEHG FXOWXUDO VWUXJJOH" 2K ZH GRQW NQRZ 9HU\ SUREDEO\ FHUWDLQ RI
DVWKHVWUXJJOHRIWKHKXPDQVSHFLHVIRUH[LVWHQFH$QGLWLV WKHP EHHV DQWV WHUPLWHV KDG WR VWULYH IRU WKRXVDQGV RI
WKLV EDWWOH RI WKH 7LWDQV WKDW RXU QXUVHV DQG JRYHUQHVVHV WU\ WR FHQWXULHV EHIRUH WKH\ IRXQG WKH ZD\ WR WKRVH VWDWH LQVWLWXWLRQV
FRPSRVHZLWKWKHLUOXOODE\VRQJRI+HDYHQ WKDW GLYLVLRQ RI IXQFWLRQV WKRVH UHVWULFWLRQV XSRQ LQGLYLGXDOV
ZKLFK ZH DGPLUH WKHP IRU WRGD\ ,W LV FKDUDFWHULVWLF RI RXU
 $QG ZH PD\ SUREDEO\ DGG PRUH SUHFLVHO\ WKDW LWV IRUP SUHVHQWVWDWHWKDWZHNQRZE\RXURZQIHHOLQJVWKDWZHVKRXOG
ZDVQHFHVVDULO\GHWHUPLQHGDIWHUVRPHGHILQLWHHYHQW QRW WKLQN RXUVHOYHV KDSS\ LQ DQ\ RI WKHVH FRPPXQLWLHV RI WKH
ZKLFKVWLOOUHPDLQVWREHGLVFRYHUHG DQLPDOZRUOGRULQDQ\RIWKHUROHVWKH\GHOHJDWHWRLQGLYLGXDOV
:LWK RWKHU DQLPDO VSHFLHV LW PD\ EH WKDW D WHPSRUDU\ GHDGORFN
KDV EHHQ UHDFKHG EHWZHHQ WKH LQIOXHQFHV RI WKHLU HQYLURQPHQW
DQG WKH LQVWLQFWV FRQWHQGLQJ ZLWKLQ WKHP VR WKDW D FHVVDWLRQ RI
GHYHORSPHQWKDVWDNHQSODFH,QSULPLWLYHPDQDIUHVKDFFHVVRI
OLELGRPD\KDYHNLQGOHGDQHZVSXUWRIHQHUJ\RQWKHSDUWRIWKH
LQVWLQFW RI GHVWUXFWLRQ 7KHUH DUH D JUHDW PDQ\ TXHVWLRQV LQ DOO
WKLVWRZKLFKDV\HWZHKDYHQRDQVZHU

$QRWKHU TXHVWLRQ FRQFHUQV XV PRUH FORVHO\ QRZ :KDW PHDQV


GRHVFLYLOL]DWLRQPDNHXVHRIWRKROGLQFKHFNWKHDJJUHVVLYHQHVV
WKDW RSSRVHV LW WR PDNH LW KDUPOHVV SHUKDSV WR JHW ULG RI LW"
6RPHRIWKHVHPHDVXUHVZHKDYHDOUHDG\FRPHWRNQRZWKRXJK
QRW \HW WKH RQH WKDW LV DSSDUHQWO\ WKH PRVW LPSRUWDQW :H FDQ
VWXG\LWLQWKHHYROXWLRQRIWKHLQGLYLGXDO:KDWKDSSHQVLQKLP
WRUHQGHUKLVFUDYLQJIRUDJJUHVVLRQLQQRFXRXV"6RPHWKLQJYHU\
FXULRXV WKDW ZH VKRXOG QHYHU KDYH JXHVVHG DQG WKDW \HW VHHPV
VLPSOH HQRXJK 7KH DJJUHVVLYHQHVV LV LQWURMHFWHG LQWHUQDOL]HG
LQIDFWLWLVVHQWEDFNZKHUHLWFDPHIURPLHGLUHFWHGDJDLQVW JLYHLWSOHDVXUH$QH[WUDQHRXVLQIOXHQFHLVHYLGHQWO\DWZRUNLW
WKH HJR ,W LV WKHUH WDNHQ RYHU E\ D SDUW RI WKH HJR WKDW LVWKLVWKDWGHFLGHVZKDWLVWREHFDOOHGJRRGDQGEDG6LQFHWKHLU
GLVWLQJXLVKHVLWVHOIIURPWKHUHVWDVDVXSHUHJRDQGQRZLQWKH RZQIHHOLQJVZRXOGQRWKDYHOHGPHQDORQJWKHVDPHSDWKWKH\
IRUP RI FRQVFLHQFH H[HUFLVHV WKH VDPH SURSHQVLW\ WR KDUVK PXVWKDYHKDGDPRWLYHIRUREH\LQJWKLVH[WUDQHRXVLQIOXHQFH,W
DJJUHVVLYHQHVVDJDLQVWWKHHJRWKDWWKHHJRZRXOGKDYHOLNHGWR LV HDV\ WR GLVFRYHU WKLV PRWLYH LQ PDQV KHOSOHVVQHVV DQG
HQMR\ DJDLQVW RWKHUV 7KH WHQVLRQ EHWZHHQ WKH VWULFW VXSHUHJR GHSHQGHQFHXSRQRWKHUVLWFDQEHVWEHGHVLJQDWHGWKHGUHDGRI
DQG WKH VXERUGLQDWH HJR ZH FDOO WKH VHQVH RI JXLOW LW PDQLIHVWV ORVLQJ ORYH ,I KH ORVHV WKH ORYH RI RWKHUV RQ ZKRP KH LV
LWVHOIDVWKHQHHGIRUSXQLVKPHQW&LYLOL]DWLRQWKHUHIRUHREWDLQV GHSHQGHQW KH ZLOO IRUIHLW DOVR WKHLU SURWHFWLRQ DJDLQVW PDQ\
WKHPDVWHU\RYHUWKHGDQJHURXVORYHRIDJJUHVVLRQLQLQGLYLGXDOV GDQJHUVDQGDERYHDOOKHUXQVWKHULVNWKDWWKLVVWURQJHUSHUVRQ
E\ HQIHHEOLQJ DQG GLVDUPLQJ LW DQG VHWWLQJ XS DQ LQVWLWXWLRQ ZLOOVKRZKLVVXSHULRULW\LQWKHIRUPRISXQLVKLQJKLP:KDWLV
ZLWKLQ WKHLU PLQGV WR NHHS ZDWFK RYHU LW OLNH D JDUULVRQ LQ D EDG LV WKHUHIRUH WR EHJLQ ZLWK ZKDWHYHU FDXVHV RQH WR EH
FRQTXHUHGFLW\ WKUHDWHQHGZLWKDORVVRIORYHEHFDXVHRIWKHGUHDGRIWKLVORVV
RQH PXVW GHVLVW IURP LW 7KDW LV ZK\ LW PDNHV OLWWOH GLIIHUHQFH
$V WR WKH RULJLQ RI WKH VHQVH RI JXLOW DQDO\VWV KDYH GLIIHUHQW ZKHWKHURQHKDVDOUHDG\FRPPLWWHGWKHEDGGHHGRURQO\LQWHQGV
YLHZVIURPWKRVHRIWKHSV\FKRORJLVWVQRULVLWHDV\IRUDQDO\VWV WR GR VR LQ HLWKHU FDVH WKH GDQJHU EHJLQV RQO\ ZKHQ WKH
WR H[SODLQ LW HLWKHU )LUVW RI DOO ZKHQ RQH DVNV KRZ D VHQVH RI DXWKRULW\ KDV IRXQG LW RXW DQG WKH ODWWHU ZRXOG EHKDYH LQ WKH
JXLOWDULVHVLQDQ\RQHRQHLVWROGVRPHWKLQJRQHFDQQRWGLVSXWH VDPHZD\LQERWKFDVHV
SHRSOH IHHO JXLOW\ SLRXV SHRSOH FDOO LW VLQIXO  ZKHQ WKH\ KDYH
GRQH VRPHWKLQJ WKH\ NQRZ WR EH EDG %XW WKHQ RQH VHHV KRZ
OLWWOH WKLV DQVZHU WHOOV RQH 3HUKDSV DIWHU VRPH KHVLWDWLRQ RQH :HFDOOWKLVVWDWHRIPLQGDEDGFRQVFLHQFHEXWDFWXDOO\LWGRHV
ZLOODGGWKDWDSHUVRQZKRKDVQRWDFWXDOO\FRPPLWWHGDEDGDFW QRW GHVHUYH WKLV QDPH IRU DW WKLV VWDJH WKH VHQVH RI JXLOW LV
EXWKDVPHUHO\EHFRPHDZDUHRIWKHLQWHQWLRQWRGRVRFDQDOVR REYLRXVO\RQO\WKHGUHDGRIORVLQJORYHVRFLDODQ[LHW\,QDOLWWOH
KROG KLPVHOI JXLOW\ DQG WKHQ RQH ZLOO DVN ZK\ LQ WKLV FDVH WKH FKLOGLWFDQQHYHUEHDQ\WKLQJHOVHEXWLQPDQ\DGXOWVWRRLWKDV
LQWHQWLRQ LV FRXQWHG DV HTXLYDOHQW WR WKH GHHG ,Q ERWK FDVHV RQO\FKDQJHGLQVRIDUDVWKHODUJHUKXPDQFRPPXQLW\WDNHVWKH
KRZHYHURQHLVSUHVXSSRVLQJWKDWZLFNHGQHVVKDVDOUHDG\EHHQ SODFHRIWKHIDWKHURURIERWKSDUHQWV&RQVHTXHQWO\VXFKSHRSOH
UHFRJQL]HG DV UHSUHKHQVLEOH DV VRPHWKLQJ WKDW RXJKW QRW WR EH KDELWXDOO\ SHUPLW WKHPVHOYHV WR GR DQ\ EDG GHHG WKDW SURFXUHV
SXW LQWR H[HFXWLRQ +RZ LV WKLV MXGJPHQW DUULYHG DW" 2QH PD\ WKHPVRPHWKLQJWKH\ZDQWLIRQO\WKH\DUHVXUHWKDWQRDXWKRULW\
UHMHFW WKH VXJJHVWLRQ RI DQ RULJLQDODV RQH PLJKW VD\ ZLOOGLVFRYHULWRUPDNH
QDWXUDOFDSDFLW\IRUGLVFULPLQDWLQJEHWZHHQJRRGDQGHYLO(YLOLV
RIWHQQRWDWDOOWKDWZKLFKZRXOGLQMXUHRUHQGDQJHUWKHHJRRQ
WKHFRQWUDU\LWFDQDOVREHVRPHWKLQJWKDWLWGHVLUHVWKDWZRXOG
WKHPVXIIHUIRULWWKHLUDQ[LHW\UHODWHVRQO\WRWKHSRVVLELOLW\RI
GHWHFWLRQ3UHVHQWGD\VRFLHW\KDVWRWDNHLQWRDFFRXQWWKH WR FRQVFLHQFH DQG JXLOW PRUHRYHU LV FRPPRQ NQRZOHGJH
SUHYDOHQFHRIWKLVVWDWHRIPLQG DQGSUDFWLFDOO\XQGLVSXWHG

$W WKLV VHFRQG VWDJH RI GHYHORSPHQW FRQVFLHQFH H[KLELWV D


2QHLVUHPLQGHGRI5RXVVHDXVIDPRXVPDQGDULQ SHFXOLDULW\ZKLFKZDVDEVHQWLQWKHILUVWDQGLVQRWYHU\HDV\WR
DFFRXQWIRU7KDWLVWKHPRUHULJKWHRXVDPDQLVWKHVWULFWHUDQG
PRUH VXVSLFLRXV ZLOO KLV FRQVFLHQFH EH VR WKDW XOWLPDWHO\ LW LV
$ JUHDW FKDQJH WDNHV SODFH DV VRRQ DV WKH DXWKRULW\ KDV EHHQ SUHFLVHO\ WKRVH SHRSOH ZKR KDYH FDUULHG KROLQHVV IDUWKHVW ZKR
LQWHUQDOL]HG E\ WKH GHYHORSPHQW RI D VXSHUHJR 7KH UHSURDFK WKHPVHOYHV ZLWK WKH GHHSHVW VLQIXOQHVV 7KLV PHDQV
PDQLIHVWDWLRQVRIFRQVFLHQFHDUHWKHQUDLVHGWRDQHZOHYHOWREH WKDWYLUWXHIRUIHLWVVRPHRIKHUSURPLVHGUHZDUGWKHVXEPLVVLYH
DFFXUDWHRQHVKRXOGQRWFDOOWKHPFRQVFLHQFHDQGVHQVHRIJXLOW DQG DEVWHPLRXV HJR GRHV QRW HQMR\ WKH WUXVW DQG FRQILGHQFH RI
EHIRUH WKLV  $W WKLV SRLQW WKH GUHDG RI GLVFRYHU\ FHDVHV WR LWV PHQWRU DQG DV LW VHHPV VWULYHV LQ YDLQ WR HDUQ LW 1RZ WR
RSHUDWHDQGDOVRRQFHIRUDOODQ\GLIIHUHQFHEHWZHHQGRLQJHYLO WKLVVRPHSHRSOHZLOOEHUHDG\WRREMHFWWKDWWKHVHGLIILFXOWLHVDUH
DQGZLVKLQJWRGRLWVLQFHQRWKLQJLVKLGGHQIURPWKHVXSHUHJR DUWLILFLDOLWLHV $ UHODWLYHO\ VWULFW DQG YLJLODQW FRQVFLHQFH LV WKH
QRW HYHQ WKRXJKWV 7KH UHDO VHULRXVQHVV RI WKH VLWXDWLRQ KDV YHU\ VLJQ RI D YLUWXRXV PDQ DQG WKRXJK VDLQWV PD\ SURFODLP
YDQLVKHGLWLVWUXHIRUWKHQHZDXWKRULW\WKHVXSHUHJRKDVQR WKHPVHOYHV VLQQHUV WKH\ DUH QRW VR ZURQJ LQ YLHZ RI WKH
PRWLYHDVIDUDVZHNQRZIRULOOWUHDWLQJWKHHJRZLWKZKLFKLW WHPSWDWLRQV RI LQVWLQFWXDO JUDWLILFDWLRQV WR ZKLFK WKH\ DUH
LV LWVHOI FORVHO\ ERXQG XS %XW WKH LQIOXHQFH RI WKH JHQHWLF SHFXOLDUO\ OLDEOHVLQFH DV ZH NQRZ WHPSWDWLRQV GR EXW LQFUHDVH
GHULYDWLRQRIWKHVHWKLQJVZKLFKFDXVHVZKDWKDVEHHQRXWOLYHG XQGHU FRQVWDQW SULYDWLRQ ZKHUHDV WKH\ VXEVLGH DW DQ\ UDWH
DQG VXUPRXQWHG WR EH UHOLYHG PDQLIHVWV LWVHOI VR WKDW RQ WKH WHPSRUDULO\LIWKH\DUHVRPHWLPHVJUDWLILHG7KHILHOGRIHWKLFVLV
ZKROH WKLQJV UHPDLQ DV WKH\ ZHUH DW WKH EHJLQQLQJ 7KH VXSHU ULFK LQ SUREOHPV DQG DQRWKHU RI WKH IDFWV ZH ILQG KHUH LV WKDW
HJRWRUPHQWVWKHVLQIXOHJRZLWKWKHVDPHIHHOLQJVRIGUHDGDQG PLVIRUWXQH LH H[WHUQDO GHSULYDWLRQ JUHDWO\ LQWHQVLILHV WKH
ZDWFKHVIRURSSRUWXQLWLHVZKHUHE\WKHRXWHUZRUOGFDQEHPDGH VWUHQJWK RI FRQVFLHQFH LQ WKH VXSHUHJR $V ORQJ DV WKLQJV JR
WRSXQLVKLW ZHOOZLWKDPDQKLVFRQVFLHQFHLVOHQLHQWDQGOHWVWKHHJRGRDOO
NLQGV RI WKLQJV ZKHQ VRPH FDODPLW\ EHIDOOV KH KROGV DQ
 (YHU\ UHDVRQDEOH SHUVRQ ZLOO XQGHUVWDQG DQG WDNH LQWR LQTXLVLWLRQ ZLWKLQ GLVFRYHUV KLV VLQ KHLJKWHQV WKH VWDQGDUGV RI
DFFRXQWWKDWLQWKLVGHVFULSWLYHVXUYH\WKLQJVWKDWLQ KLV FRQVFLHQFH LPSRVHV DEVWLQHQFHV RQ KLPVHOI DQG SXQLVKHV
UHDOLW\ RFFXU E\ JUDGXDO WUDQVLWLRQV DUH VKDUSO\ KLPVHOIZLWKSHQDQFHV:KROHSHRSOHVKDYHDFWHGLQWKLVZD\
GLIIHUHQWLDWHGDQGWKDWWKHPHUHH[LVWHQFHRIDVXSHUHJRLV DQG VWLOO GR VR %XW WKLV LV HDVLO\ H[SODLQHG IURP WKH RULJLQDO
QRWWKH LQIDQWLOH VWDJH RI FRQVFLHQFH ZKLFK DV ZH WKXV VHH LV QRW
RQO\ IDFWRU FRQFHUQHG EXW DOVR LWV UHODWLYH VWUHQJWK DQG DEDQGRQHGDIWHUWKHLQWURMHFWLRQLQWRWKHVXSHUHJREXWSHUVLVWV
VSKHUHRILQIOXHQFH$OOWKDWKDVEHHQVDLGDERYHLQUHJDUG
DORQJVLGHDQGEHKLQGWKHODWWHU)DWHLVIHOWWREHDVXEVWLWXWHIRU FRQFHDOHG IURP WKH VXSHUHJR :H KDYH DOVR KHDUG KRZ WKH
WKHDJHQF\RIWKHSDUHQWVDGYHUVLW\PHDQVWKDWRQHLVQRORQJHU VHYHULW\ RI WKH VXSHUHJR WKH ULJRXU RI FRQVFLHQFH LV WR EH
ORYHGE\WKLVKLJKHVWSRZHURIDOODQGWKUHDWHQHGE\WKLVORVVRI H[SODLQHG,WVLPSO\FDUULHVRQWKHVHYHULW\RIH[WHUQDODXWKRULW\
ORYHRQHKXPEOHVRQHVHOIDJDLQEHIRUHWKHUHSUHVHQWDWLYHRIWKH ZKLFKLWKDVVXFFHHGHGDQGWRVRPHH[WHQWUHSODFHG:HVHHQRZ
SDUHQWVLQWKHVXSHUHJRZKLFKLQKDSSLHUGD\VRQHKDGWULHGWR KRZ UHQXQFLDWLRQ RI LQVWLQFWXDO JUDWLILFDWLRQ LV UHODWHG WR WKH
GLVUHJDUG7KLVEHFRPHVHVSHFLDOO\FOHDUZKHQGHVWLQ\LVORRNHG VHQVH RI JXLOW 2ULJLQDOO\ LW LV WUXH UHQXQFLDWLRQ LV WKH
XSRQLQWKHVWULFWO\UHOLJLRXVVHQVHDVWKHH[SUHVVLRQRI*RGVZLOO FRQVHTXHQFH RI D GUHDG RI H[WHUQDO DXWKRULW\ RQH JLYHV XS
DQGQRWKLQJHOVH7KHSHRSOHRI,VUDHOEHOLHYHGWKHPVHOYHVWREH SOHDVXUHV VR DV QRW WR ORVH LWV ORYH +DYLQJ PDGH WKLV
*RGV IDYRXULWH FKLOGUHQ DQG ZKHQ WKH JUHDW )DWKHU KXUOHG UHQXQFLDWLRQRQHLVTXLWVZLWKDXWKRULW\VRWRVSHDNQRIHHOLQJ
YLVLWDWLRQDIWHUYLVLWDWLRQXSRQWKHPLWVWLOOQHYHUVKRRNWKHPLQ RI JXLOW VKRXOG UHPDLQ %XW ZLWK WKH GUHDG RI WKH VXSHUHJR WKH
WKLV EHOLHI RU FDXVHG WKHP WR GRXEW +LV SRZHU DQG +LV MXVWLFH FDVH LV GLIIHUHQW 5HQXQFLDWLRQ RI JUDWLILFDWLRQ GRHV QRW VXIILFH
WKH\SURFHHGHGLQVWHDGWREULQJWKHLUSURSKHWVLQWRWKHZRUOGWR KHUH IRU WKH ZLVK SHUVLVWV DQG LV QRW FDSDEOH RI EHLQJ KLGGHQ
GHFODUH WKHLU VLQIXOQHVV WR WKHP DQG RXW RI WKHLU VHQVH RI JXLOW IURP WKH VXSHUHJR ,Q VSLWH RI WKH UHQXQFLDWLRQV PDGH IHHOLQJV
WKH\ FRQVWUXFWHG WKH VWULQJHQW FRPPDQGPHQWV RI WKHLU SULHVWO\ RI JXLOW ZLOO EH H[SHULHQFHG DQG WKLV LV D JUHDW GLVDGYDQWDJH
UHOLJLRQ ,W LV FXULRXV KRZ GLIIHUHQWO\ D VDYDJH EHKDYHV ,I KH HFRQRPLFDOO\ RI WKH HUHFWLRQ RI WKH VXSHUHJR RU DV RQH PD\
KDV KDG EDG IRUWXQH KH GRHV QRW WKURZ WKH EODPH RQ KLPVHOI VD\RIWKHIRUPDWLRQRIFRQVFLHQFH5HQXQFLDWLRQQRORQJHUKDVD
EXWRQKLVIHWLVKZKRKDVSODLQO\QRWGRQHKLVGXW\E\KLPDQG FRPSOHWHO\ DEVROYLQJ HIIHFW YLUWXRXV UHVWUDLQW LV QR ORQJHU
KHEHODERXUVLWLQVWHDGRISXQLVKLQJKLPVHOI UHZDUGHG E\ WKH DVVXUDQFH RI ORYH D WKUHDWHQHG H[WHUQDO
XQKDSSLQHVVORVV RI ORYH DQG SXQLVKPHQW PHWHG RXW E\ H[WHUQDO
7KLVLQFUHDVHGVHQVLWLYLW\RIPRUDOVLQFRQVHTXHQFHRILOO DXWKRULW\KDVEHHQH[FKDQJHGIRUDODVWLQJLQQHUXQKDSSLQHVVWKH
OXFNKDVEHHQLOOXVWUDWHGE\0DUN7ZDLQLQDGHOLFLRXV WHQVLRQRIDVHQVHRIJXLOW
OLWWOH VWRU\ 7KH )LUVW 0HORQ , HYHU 6WROH 7KLV PHORQ DV LW
KDSSHQHGZDVXQULSH,KHDUG0DUN7ZDLQWHOOWKHVWRU\ 7KHVHLQWHUUHODWLRQVDUHVRFRPSOLFDWHGDQGDWWKHVDPHWLPHVR
KLPVHOILQRQHRIKLVOHFWXUHV$IWHUKHKDGJLYHQRXWWKHWLWOH LPSRUWDQW WKDW LQ VSLWH RI WKH GDQJHUV RI UHSHWLWLRQ , ZLOO
KHVWRSSHGDQGDVNHGKLPVHOILQDGRXEWIXOZD\ FRQVLGHU WKHP DJDLQ IURP DQRWKHU DQJOH 7KH FKURQRORJLFDO
:DVLWWKHILUVW"7KLVZDVWKHZKROHVWRU\ VHTXHQFH ZRXOG WKXV EH DV IROORZV ILUVW LQVWLQFWUHQXQFLDWLRQ
+HQFHZHNQRZRIWZRVRXUFHVIRUIHHOLQJVRIJXLOWWKDWDULVLQJ GXH WR GUHDG RI DQ DJJUHVVLRQ E\ H[WHUQDO DXWKRULW\WKLV LV RI
IURPWKHGUHDGRIDXWKRULW\DQGWKHODWHURQHIURPWKHGUHDGRI FRXUVH WDQWDPRXQW WR WKH GUHDG RI ORVV RI ORYH IRU ORYH LV D
WKH VXSHUHJR 7KH ILUVW RQH FRPSHOV XV WR UHQRXQFH LQVWLQFWXDO SURWHFWLRQ DJDLQVW WKHVH SXQLWLYH DJJUHVVLRQV 7KHQ IROORZV WKH
JUDWLILFDWLRQ WKH RWKHU SUHVVHV RYHU DQG DERYH WKLV WRZDUGV HUHFWLRQRIDQLQWHUQDODXWKRULW\DQGLQVWLQFWXDOUHQXQFLDWLRQGXH
SXQLVKPHQWVLQFHWKHSHUVLVWHQFHRIIRUELGGHQZLVKHVFDQQRWEH WR GUHDG RI LWWKDW LV GUHDG RI FRQVFLHQFH ,Q WKH VHFRQG FDVH
WKHUH LV WKH HTXLYDOHQFH RI ZLFNHG DFWV DQG ZLFNHG LQWHQWLRQV IXUWKHUUHGXFHG,QRUGHUWRVWDWHWKHSUREOHPPRUHHDVLO\OHWXV
KHQFH FRPHV WKH VHQVH RI JXLOW WKH QHHG IRU SXQLVKPHQW 7KH VHOHFW WKH H[DPSOH RI WKH LQVWLQFW RI DJJUHVVLRQ DQG OHW XV
DJJUHVVLYHQHVV RI FRQVFLHQFH FDUULHV RQ WKH DJJUHVVLYHQHVV RI VXSSRVH WKDW WKH UHQXQFLDWLRQ LQ TXHVWLRQ LV DOZD\V D
DXWKRULW\7KXVIDUDOOVHHPVWREHFOHDUEXWKRZFDQZHILQGD UHQXQFLDWLRQ RI DJJUHVVLRQ 7KLV LV RI FRXUVH PHUHO\ D
SODFHLQWKLVVFKHPHIRUWKHHIIHFWSURGXFHGE\PLVIRUWXQH LH SURYLVLRQDODVVXPSWLRQ7KHHIIHFWRILQVWLQFWXDOUHQXQFLDWLRQRQ
UHQXQFLDWLRQV H[WHUQDOO\ LPSRVHG  IRU WKH HIIHFW LW KDV RI FRQVFLHQFH WKHQ RSHUDWHV DV IROORZV HYHU\ LPSXOVH RI
LQFUHDVLQJ WKH ULJRXU RI FRQVFLHQFH" +RZ DFFRXQW IRU WKH DJJUHVVLRQZKLFKZHRPLWWRJUDWLI\LVWDNHQRYHUE\WKHVXSHU
H[FHSWLRQDOVWULQJHQF\RIFRQVFLHQFHLQWKHEHVWPHQWKRVHOHDVW HJRDQGJRHVWRKHLJKWHQLWVDJJUHVVLYHQHVV DJDLQVWWKHHJR ,W
JLYHQ WR UHEHO DJDLQVW LW" :H KDYH DOUHDG\ H[SODLQHG ERWK WKHVH GRHV QRW ILW LQ ZHOO ZLWK WKLV WKDW WKH RULJLQDO DJJUHVVLYHQHVV RI
SHFXOLDULWLHV RI FRQVFLHQFH EXW SUREDEO\ ZH VWLOO KDYH DQ FRQVFLHQFH VKRXOG UHSUHVHQW D FRQWLQXDQFH RI WKH ULJRXU RI
LPSUHVVLRQ WKDW WKHVH H[SODQDWLRQV GR QRW JR WR WKH URRW RI WKH H[WHUQDODXWKRULW\DQGVRKDYHQRWKLQJWRGRZLWKUHQXQFLDWLRQ
PDWWHUDQGWKDWWKH\OHDYHVRPHWKLQJVWLOOXQH[SODLQHG$QGKHUH %XWZHFDQJHWULGRIWKLVGLVFUHSDQF\LIZHSUHVXPHDGLIIHUHQW
DW ODVW FRPHV LQ DQ LGHD ZKLFK LV TXLWH SHFXOLDU WR SV\FKR RULJLQ IRU WKH ILUVW TXDQWXP RI DJJUHVVLYHQHVV ZLWK ZKLFK WKH
DQDO\VLV DQG DOLHQ WR RUGLQDU\ ZD\V RI WKLQNLQJ ,WV QDWXUH VXSHUHJRZDVHQGRZHG
HQDEOHV XV WR XQGHUVWDQG ZK\ WKH ZKROH PDWWHU QHFHVVDULO\
VHHPHG VR FRQIXVHG DQG REVFXUH WR XV ,W WHOOV XV WKLV LQ WKH
EHJLQQLQJ FRQVFLHQFH PRUH FRUUHFWO\ WKH DQ[LHW\ ZKLFK ODWHU :KHQ DXWKRULW\ SUHYHQWHG WKH FKLOG IURP HQMR\LQJ WKH ILUVW EXW
EHFDPH FRQVFLHQFH  ZDV WKH FDXVH RI LQVWLQFWXDO UHQXQFLDWLRQ PRVW LPSRUWDQW JUDWLILFDWLRQV RI DOO DJJUHVVLYH LPSXOVHV RI
EXW ODWHU WKLV UHODWLRQ LV UHYHUVHG (YHU\ UHQXQFLDWLRQ WKHQ FRQVLGHUDEOHLQWHQVLW\PXVWKDYHEHHQHYRNHGLQLWLUUHVSHFWLYH
EHFRPHV D G\QDPLF IRXQW RI FRQVFLHQFH HYHU\ IUHVK RIWKHSDUWLFXODUQDWXUHRIWKHLQVWLQFWXDOGHSULYDWLRQVFRQFHUQHG
DEDQGRQPHQW RI JUDWLILFDWLRQ LQFUHDVHV LWV VHYHULW\ DQG 7KH FKLOG PXVW QHFHVVDULO\ KDYH KDG WR JLYH XS WKH VDWLVIDFWLRQ
LQWROHUDQFH DQG LI ZH FRXOG RQO\ EULQJ LW EHWWHU LQWR KDUPRQ\ RIWKHVHUHYHQJHIXODJJUHVVLYHZLVKHV,QWKLVVLWXDWLRQLQZKLFK
ZLWK ZKDW ZH DOUHDG\ NQRZ DERXW WKH GHYHORSPHQW RI LW LV HFRQRPLFDOO\ VR KDUG SUHVVHG LW KDV UHFRXUVH WR FHUWDLQ
FRQVFLHQFH ZH VKRXOG EH WHPSWHG WR PDNH WKH IROORZLQJ PHFKDQLVPVZHOONQRZQWRXVE\WKHSURFHVVRILGHQWLILFDWLRQLW
SDUDGR[LFDO VWDWHPHQW &RQVFLHQFH LV WKH UHVXOW RI LQVWLQFWXDO DEVRUEV LQWR LWVHOI WKH LQYXOQHUDEOH DXWKRULW\ ZKLFK WKHQ
UHQXQFLDWLRQRU5HQXQFLDWLRQ H[WHUQDOO\LPSRVHG JLYHVULVHWR EHFRPHV WKH VXSHUHJR DQG FRPHV LQWR SRVVHVVLRQ RI DOO WKH
FRQVFLHQFHZKLFKWKHQGHPDQGVIXUWKHUUHQXQFLDWLRQV DJJUHVVLYHQHVV ZKLFK WKH FKLOG ZRXOG JODGO\ KDYH H[HUFLVHG
DJDLQVWLW7KHFKLOGVHJRKDVWRFRQWHQWLWVHOIZLWKWKHXQKDSS\
7KH FRQWUDGLFWLRQ EHWZHHQ WKLV SURSRVLWLRQ DQG RXU SUHYLRXV UROHRIWKHDXWKRULW\WKHIDWKHUZKRKDVEHHQWKXVGHJUDGHG,WLV
NQRZOHGJH DERXW WKH JHQHVLV RI FRQVFLHQFH LV QRW LQ DFWXDO IDFW DV VR RIWHQ D UHYHUVDO RI WKH RULJLQDO VLWXDWLRQ ,I , ZHUH IDWKHU
VR YHU\ JUHDW DQG ZH FDQ VHH D ZD\ LQ ZKLFK LW PD\ EH VWLOO DQG\RXP\FKLOG,ZRXOGWUHDW\RXEDGO\7KHUHODWLRQEHWZHHQ
VXSHUHJRDQGHJRLVDUHSURGXFWLRQGLVWRUWHGE\DZLVKRIWKH FRQWUDU\ LW LV WKH LQYDULDEOH DHWLRORJLFDO FRQGLWLRQ RI DOO VXFK
UHDOUHODWLRQVEHWZHHQWKHHJREHIRUHLWZDVVXEGLYLGHGDQGDQ SURFHVVHV
H[WHUQDO REMHFW 7KDW LV DOVR W\SLFDO 7KH HVVHQWLDO GLIIHUHQFH
KRZHYHULVWKDWWKHRULJLQDOVHYHULW\RIWKHVXSHUHJRGRHVQRWRU
QRW VR PXFKUHSUHVHQW WKH VHYHULW\ ZKLFK KDV EHHQ H[SHULHQFHG  $V KDV ULJKWO\ EHHQ HPSKDVL]HG E\ 0HODQLH .OHLQ DQG
RU DQWLFLSDWHG IURP WKH REMHFW EXW H[SUHVVHV WKH FKLOGV RZQ RWKHU(QJOLVKZULWHUV
DJJUHVVLYHQHVV WRZDUGV WKH ODWWHU ,I WKLV LV FRUUHFW RQH FRXOG
WUXO\DVVHUWWKDWFRQVFLHQFHLVIRUPHGLQWKHEHJLQQLQJIURPWKH
VXSSUHVVLRQ RI DQ DJJUHVVLYH LPSXOVH DQG VWUHQJWKHQHG DV WLPH  ,Q KLV 3V\FKRDQDO\VH GHU *HVDPWSHUVRQOLFKNHLW 
JRHVRQE\HDFKIUHVKVXSSUHVVLRQRIWKHNLQG )UDQ]$OH[DQGHUKDVLQFRQQHFWLRQZLWK$LFKKRUQVVWXG\
RI GLVVRFLDO EHKDYLRXU LQ FKLOGUHQ GLVFXVVHG WKH WZR PDLQ
W\SHVRISDWKRJHQLFPHWKRGVRIWUDLQLQJWKDWRIH[FHVVLYH
1RZ ZKLFK RI WKHVH WZR WKHRULHV LV WKH WUXH RQH" 7KH HDUOLHU VHYHULW\ DQG RI VSRLOLQJ 7KH XQGXO\ OHQLHQW DQG LQGXOJHQW
ZKLFKVHHPHGJHQHWLFDOO\VRXQDVVDLODEOHRUWKHQHZRQHZKLFK IDWKHUIRVWHUVWKHGHYHORSPHQWRIDQRYHUVWULFWVXSHUHJR
URXQGVRIIRXUWKHRULHVLQVXFKDZHOFRPHPDQQHU"&OHDUO\WKH\ EHFDXVHLQIDFHRIWKHORYHZKLFKLVVKRZHUHGRQLWWKHFKLOG
DUH ERWK MXVWLILHG DQG E\ WKH HYLGHQFH WRR RI GLUHFW KDVQRRWKHUZD\RIGLVSRVLQJRILWVDJJUHVVLYHQHVV
REVHUYDWLRQ WKH\ GR QRW FRQWUDGLFW HDFK RWKHU DQG HYHQ WKDQWRWXUQLWLQZDUGV,QQHJOHFWHGFKLOGUHQZKRJURZXS
FRLQFLGH DW RQH SRLQW IRU WKH FKLOGV UHYHQJHIXO DJJUHVVLYHQHVV ZLWKRXWDQ\ORYHWKHWHQVLRQEHWZHHQHJRDQGVXSHUHJR
ZLOOEHLQSDUWSURYRNHGE\WKHDPRXQWRISXQLVKLQJDJJUHVVLRQ LV ODFNLQJ WKHLU DJJUHVVLRQV FDQ EH GLUHFWHG H[WHUQDOO\
WKDW LW DQWLFLSDWHV IURP WKH IDWKHU ([SHULHQFH KDV VKRZQ $SDUWIURPDQ\FRQVWLWXWLRQDOIDFWRUZKLFKPD\EHSUHVHQW
KRZHYHU WKDW WKH VHYHULW\ ZKLFK D FKLOGV VXSHUHJR GHYHORSV LQ WKHUHIRUH RQH PD\ VD\ WKDW D VWULFW FRQVFLHQFH DULVHV IURP
QRZD\FRUUHVSRQGVWRWKHVHYHULW\RIWKHWUHDWPHQWLWKDVLWVHOI WKHFRRSHUDWLRQRIWZRIDFWRUVLQWKHHQYLURQPHQWWKH
H[SHULHQFHG,WVHHPVWREHLQGHSHQGHQWRIWKHODWWHUDFKLOG GHSULYDWLRQ RI LQVWLQFWXDO JUDWLILFDWLRQ ZKLFK HYRNHV WKH
ZKLFK KDV EHHQ YHU\ OHQLHQWO\ WUHDWHG FDQ DFTXLUH D YHU\ VWULFW FKLOGVDJJUHVVLYHQHVVDQGWKHORYHLWUHFHLYHVZKLFKWXUQV
FRQVFLHQFH %XW LW ZRXOG DOVR EH ZURQJ WR H[DJJHUDWH WKLV WKLV DJJUHVVLYHQHVV LQZDUGV ZKHUH LW LV WDNHQ RYHU E\ WKH
LQGHSHQGHQFH LW LV QRW GLIILFXOW WR DVVXUH RQHVHOI WKDW VWULFW VXSHUHJR
XSEULQJLQJ DOVR KDV D VWURQJ LQIOXHQFH RQ WKH IRUPDWLRQ RI D
FKLOGV VXSHUHJR ,W FRPHV WR WKLV WKDW WKH IRUPDWLRQ RI WKH
VXSHUHJRDQGWKHGHYHORSPHQWRIFRQVFLHQFHDUHGHWHUPLQHGLQ ,W PD\ DOVR EH VDLG WKDW ZKHQ D FKLOG UHDFWV WR WKH ILUVW JUHDW
SDUWE\LQQDWHFRQVWLWXWLRQDOIDFWRUVDQGLQSDUWE\WKHLQIOXHQFH LQVWLQFWXDO GHSULYDWLRQV ZLWK DQ H[FHVVLYH DJJUHVVLYHQHVV DQG D
RIWKHDFWXDOHQYLURQPHQWDQGWKDWLVLQQRZD\VXUSULVLQJRQWKH FRUUHVSRQGLQJVWULFWQHVVRILWVVXSHUHJRLWLVWKHUHE\IROORZLQJ
D SK\ORJHQHWLF SURWRW\SH XQKHHGIXO RI ZKDW UHDFWLRQ ZRXOG LQ
UHDOLW\EHMXVWLILHGIRUWKHIDWKHURISULPLWLYHWLPHVZDVFHUWDLQO\ RQHDFWDQGFOHDUO\LWSUHVXSSRVHVWKDWFRQVFLHQFHWKHFDSDFLW\
WHUULI\LQJ DQG RQH PD\ VDIHO\ DWWULEXWH WKH XWPRVW GHJUHH RI IRU IHHOLQJV RI JXLOW ZDV DOUHDG\ LQ H[LVWHQFH EHIRUH WKH GHHG
DJJUHVVLYHQHVVWRKLP7KHGLIIHUHQFHVEHWZHHQWKHWZRWKHRULHV 5HPRUVH RI WKLV NLQG FDQ WKHUHIRUH QHYHU KHOS XV WR ILQG RXW
RIWKHJHQHVLVRIFRQVFLHQFHDUHWKXVVWLOOIXUWKHUGLPLQLVKHGLI WKHVRXUFHRIFRQVFLHQFHDQGIHHOLQJVRIJXLOWLQJHQHUDO,QWKHVH
RQH SDVVHV IURP LQGLYLGXDO WR SK\ORJHQHWLF GHYHORSPHQW %XW HYHU\GD\LQVWDQFHVWKHFRXUVHRIHYHQWVLVXVXDOO\DVIROORZVDQ
WKHQ RQ WKH RWKHU KDQG ZH ILQG D QHZ LPSRUWDQW GLIIHUHQFH LQVWLQFWXDO QHHG DFTXLUHV WKH VWUHQJWK WR DFKLHYH IXOILOPHQW LQ
EHWZHHQWKHWZRSURFHVVHV:HFDQQRWGLVUHJDUGWKHFRQFOXVLRQ VSLWH RI FRQVFLHQFH WKH VWUHQJWK RI ZKLFK DOVR KDV LWV OLPLWV
WKDW PDQV VHQVH RI JXLOW KDV LWV RULJLQ LQ WKH 2HGLSXV FRPSOH[ ZKHUHXSRQWKHLQHYLWDEOHUHGXFWLRQRIWKHQHHGDIWHUVDWLVIDFWLRQ
DQGZDVDFTXLUHGZKHQWKHIDWKHUZDVNLOOHGE\WKHDVVRFLDWLRQ UHVWRUHV WKH HDUOLHU EDODQFH RI IRUFHV 3V\FKRDQDO\VLV LV TXLWH
RIWKHEURWKHUV$WWKDWWLPHWKHDJJUHVVLRQZDVQRWVXSSUHVVHG MXVWLILHG WKHUHIRUH LQ H[FOXGLQJ WKH FDVH RI D VHQVH RI JXLOW
EXW FDUULHG RXW DQG LW LV WKLV VDPH DFW RI DJJUHVVLRQ ZKRVH WKURXJK UHPRUVH IURP WKLV GLVFXVVLRQ KRZHYHU IUHTXHQWO\ LW
VXSSUHVVLRQ LQ WKH FKLOG ZH UHJDUG DV WKH VRXUFH RI IHHOLQJV RI PD\RFFXUDQGKRZHYHUJUHDWLWVLPSRUWDQFHPD\EHSUDFWLFDOO\
JXLOW1RZ,VKRXOGQRWEHVXUSULVHGLIDUHDGHUZHUHWRFU\RXW
DQJULO\ 6R LW PDNHV QR GLIIHUHQFH ZKHWKHU RQH GRHV NLOO RQHV %XWLIPDQVVHQVHRIJXLOWJRHVEDFNWRWKHPXUGHURIWKHIDWKHU
IDWKHURUGRHVQRWRQHJHWVDIHHOLQJRIJXLOWLQHLWKHUFDVH+HUH WKDWZDVXQGRXEWHGO\DQLQVWDQFHRIUHPRUVHDQG\HWDUHZHWR
,VKRXOGWKLQNRQHPD\EHDOORZHGVRPHGRXEWV(LWKHULWLVQRW VXSSRVHWKDW WKHUH ZHUH QR FRQVFLHQFH DQG IHHOLQJV RI JXLOW
WUXHWKDWJXLOWLVHYRNHGE\VXSSUHVVHGDJJUHVVLYHQHVVRUHOVHWKH EHIRUH WKH DFW RQ WKDW RFFDVLRQ" ,I VR ZKHUH GLG WKH UHPRUVH
ZKROHVWRU\DERXWWKHIDWKHUPXUGHULVDURPDQFHDQGSULPHYDO FRPHIURPWKHQ"7KLVLQVWDQFHPXVWH[SODLQWRXVWKHULGGOHRI
PDQ GLG QRW NLOO KLV IDWKHU DQ\ PRUH RIWHQ WKDQ SHRSOH GR WKHVHQVHRIJXLOWDQGVRPDNHDQHQGRIRXUGLIILFXOWLHV$QGLW
QRZDGD\V %HVLGHV WKLV LI LW LV QRW D URPDQFH EXW D SODXVLEOH ZLOOGRVRDV,EHOLHYH7KLVUHPRUVHZDVWKHUHVXOWRIWKHYHU\
SLHFH RI KLVWRU\ LW ZRXOG RQO\ EH DQ LQVWDQFH RI ZKDW ZH DOO HDUOLHVW SULPDO DPELYDOHQFH RI IHHOLQJV WRZDUGV WKH IDWKHU WKH
H[SHFWWRKDSSHQQDPHO\WKDWRQHIHHOVJXLOW\EHFDXVHRQHKDV VRQV KDWHG KLP EXW WKH\ ORYHG KLP WRR DIWHU WKHLU KDWH DJDLQVW
UHDOO\ GRQH VRPHWKLQJ ZKLFK FDQQRW EH MXVWLILHG $QG ZKDW ZH KLPKDGEHHQVDWLVILHGE\WKHLUDJJUHVVLYHDFWVWKHLUORYHFDPH
DUH DOO ZDLWLQJ IRU LV IRU SV\FKRDQDO\VLV WR JLYH XV DQ WRH[SUHVVLRQLQWKHLUUHPRUVHDERXWWKHGHHGVHWXSWKHVXSHU
H[SODQDWLRQRIWKLVUHDFWLRQZKLFKDWDQ\UDWHLVVRPHWKLQJWKDW HJRE\LGHQWLILFDWLRQZLWKWKHIDWKHUJDYHLWWKHIDWKHUVSRZHUWR
KDSSHQVHYHU\GD\ SXQLVK DV KH ZRXOG KDYH GRQH WKH DJJUHVVLRQ WKH\ KDG
SHUIRUPHG DQG FUHDWHG WKH UHVWULFWLRQV ZKLFK VKRXOG SUHYHQW D
7KLVLVWUXHDQGZHPXVWPDNHJRRGWKHRPLVVLRQ7KHUHLVQR UHSHWLWLRQRIWKHGHHG$QGVLQFHLPSXOVHVWRDJJUHVVLRQVDJDLQVW
JUHDWP\VWHU\DERXWLWHLWKHU:KHQRQHKDVIHHOLQJVRIJXLOWDIWHU WKHIDWKHUZHUHUHSHDWHGLQWKHQH[WJHQHUDWLRQVWKHIHHOLQJVRI
RQH KDV FRPPLWWHG VRPH FULPH DQG EHFDXVH RI LW WKLV IHHOLQJ JXLOW WRR SHUVLVWHG DQG ZHUH IXUWKHU UHLQIRUFHG HYHU\ WLPH DQ
VKRXOG PRUH SURSHUO\ EH FDOOHG UHPRUVH ,W UHODWHV RQO\ WR WKH DJJUHVVLRQ ZDV VXSSUHVVHG DQHZ DQG PDGH RYHU WR WKH VXSHU
HJR$WWKLVSRLQWLWVHHPVWRPHZHFDQDWODVWFOHDUO\SHUFHLYH 7KHQOHDYHXVERZHGEHQHDWKRXUORDG
WKHSDUWSOD\HGE\ORYHLQWKHRULJLQRIFRQVFLHQFHDQGWKHIDWDO )RUHDUWKLWVHYHU\GHEWHQIRUFHV
LQHYLWDEOHQHVV RI WKH VHQVH RI JXLOW ,W LV QRW UHDOO\ D GHFLVLYH
PDWWHUZKHWKHURQHKDVNLOOHGRQHVIDWKHURUDEVWDLQHGIURPWKH *RHWKH:LOKHOP0HLVWHU7KH6RQJRIWKH+DUSHU
GHHG RQH PXVW IHHO JXLOW\ LQ HLWKHU FDVH IRU JXLOW LV WKH
H[SUHVVLRQ RI WKH FRQIOLFW RI DPELYDOHQFH WKH HWHUQDO VWUXJJOH
EHWZHHQ(URVDQGWKHGHVWUXFWLYHRUGHDWKLQVWLQFW7KLVFRQIOLFW $QGRQHPD\KHDYHDVLJKDWWKHWKRXJKWWKDWLWLVYRXFKVDIHGWR
LV HQJHQGHUHG DV VRRQ DV PDQ LV FRQIURQWHG ZLWK WKH WDVN RI DIHZZLWKKDUGO\DQHIIRUWWRVDOYHIURPWKHZKLUOSRRORIWKHLU
OLYLQJ ZLWK KLV IHOORZV DV ORQJ DV KH NQRZV QR RWKHU IRUP RI RZQ HPRWLRQV WKH GHHSHVW WUXWKV WR ZKLFK ZH RWKHUV KDYH WR
OLIHLQFRPPRQEXWWKDWRIWKHIDPLO\LWPXVWH[SUHVVLWVHOILQWKH IRUFHRXUZD\FHDVHOHVVO\JURSLQJDPLGWRUWXULQJXQFHUWDLQWLHV
2HGLSXV FRPSOH[ FDXVH WKH GHYHORSPHQW RI FRQVFLHQFH DQG
FUHDWHWKHILUVWIHHOLQJVRIJXLOW:KHQPDQNLQGWULHVWRLQVWLWXWH
ZLGHU IRUPV RI FRPPXQDO OLIH WKH VDPH FRQIOLFW FRQWLQXHV WR
DULVH LQ IRUPV GHULYHG IURP WKH SDVWDQG LQWHQVLILHG VR WKDW D
IXUWKHUUHLQIRUFHPHQWRIWKHVHQVHRIJXLOWUHVXOWV6LQFHFXOWXUH
REH\VDQLQQHUHURWLFLPSXOVHZKLFKELGVLWELQGPDQNLQGLQWRD
FORVHO\NQLW PDVV LW FDQ DFKLHYH WKLV DLP RQO\ E\ PHDQV RI LWV
YLJLODQFH LQ IRPHQWLQJ DQ HYHULQFUHDVLQJ VHQVH RI JXLOW 7KDW
ZKLFK EHJDQ LQ UHODWLRQ WR WKH IDWKHU HQGV LQ UHODWLRQ WR WKH
FRPPXQLW\,IFLYLOL]DWLRQLVDQLQHYLWDEOHFRXUVHRIGHYHORSPHQW
IURP WKH JURXS RI WKH IDPLO\ WR WKH JURXS RI KXPDQLW\ DV D
ZKROHWKHQDQLQWHQVLILFDWLRQRIWKHVHQVHRIJXLOWUHVXOWLQJIURP
WKH LQQDWH FRQIOLFW RI DPELYDOHQFH IURP WKH HWHUQDO VWUXJJOH
EHWZHHQWKHORYHDQGWKHGHDWKWUHQGVZLOOEHLQH[WULFDEO\ERXQG
XS ZLWK LW XQWLO SHUKDSV WKH VHQVH RI JXLOW PD\ VZHOO WR D
PDJQLWXGHWKDWLQGLYLGXDOVFDQKDUGO\VXSSRUW2QHLVUHPLQGHG
RI WKH WHOOLQJ DFFXVDWLRQ PDGH E\ WKH JUHDW SRHW DJDLQVW WKH
KHDYHQO\IRUFHV

<HVHWRXUIHHWRQWKLVOLIHVURDG
<HZDWFKRXUJXLOW\HUULQJFRXUVHV
PDODGLHV WKH REVHVVLRQDO QHXURVLV WKH VHQVH RI JXLOW PDNHV
LWVHOI ORXGO\ KHDUG LQ FRQVFLRXVQHVV LW GRPLQDWHV WKH FOLQLFDO
SLFWXUH DV ZHOO DV WKH SDWLHQWV OLIH DQG OHWV KDUGO\ DQ\WKLQJ HOVH
DSSHDUDORQJVLGHRILW%XWLQPRVWRIWKHRWKHUW\SHVDQGIRUPV
9,,, RIQHXURVLVLWUHPDLQVFRPSOHWHO\XQFRQVFLRXVZLWKRXWLWVHIIHFW
EHLQJ DQ\ OHVV JUHDW KRZHYHU 2XU SDWLHQWV GR QRW EHOLHYH XV
ZKHQZHDVFULEHDQXQFRQVFLRXVVHQVHRIJXLOWWRWKHPLQRUGHU
21UHDFKLQJ WKH HQG RI VXFK D MRXUQH\ DV WKLV WKH DXWKRU PXVW
WR EHFRPH HYHQ PRGHUDWHO\ LQWHOOLJLEOH WR WKHP ZH KDYH WR
EHJKLVUHDGHUVWRSDUGRQKLPIRUQRWKDYLQJEHHQDPRUHVNLOIXO
H[SODLQWKDWWKHVHQVHRIJXLOWH[SUHVVHVLWVHOILQDQXQFRQVFLRXV
JXLGH QRW VSDULQJ WKHP EOHDN VWUHWFKHV RI FRXQWU\ DW WLPHV DQG
VHHNLQJIRUSXQLVKPHQW%XWLWVFRQQHFWLRQZLWKWKHIRUPRIWKH
ODERULRXVGHWRXUVDWRWKHUV7KHUHLVQRGRXEWWKDWLWFRXOGKDYH
QHXURVLV LV QRW WR EH RYHUHVWLPDWHG HYHQ LQ WKH REVHVVLRQDO
EHHQGRQHEHWWHU,ZLOOQRZWU\WRPDNHVRPHDPHQGV
QHXURVLV WKHUH DUH SHRSOH ZKR DUH QRW DZDUH RI WKHLU VHQVH RI
JXLOWRUZKRSHUFHLYHLWRQO\DVDWRUPHQWLQJXQHDVLQHVVRUNLQG
)LUVW RI DOO , VXVSHFW WKH UHDGHU IHHOV WKDW WKH GLVFXVVLRQ DERXW
RI DQ[LHW\ DQG WKHQ QRW XQWLO WKH\ DUH SUHYHQWHG IURP FDUU\LQJ
WKH VHQVH RI JXLOW RYHUVWHSV LWV SURSHU ERXQGDULHV LQ WKLV HVVD\
RXW FHUWDLQ DFWLRQV :H RXJKW VRPH GD\ WR EH DEOH DW ODVW WR
DQG WDNHV XS WRR PXFK VSDFH VR WKDW WKH UHVW RI WKH VXEMHFW
XQGHUVWDQG WKHVH WKLQJV DV \HW ZH FDQQRW +HUH SHUKDSV LV WKH
PDWWHU ZKLFK LV QRW DOZD\V FORVHO\ FRQQHFWHG ZLWK LW JHWV
SODFHWRUHPDUNWKDWDWERWWRPWKHVHQVHRIJXLOWLVQRWKLQJEXWD
SXVKHGWRRQHVLGH7KLVPD\KDYHVSRLOWWKHFRPSRVLWLRQRIWKH
WRSRJUDSKLFDO YDULHW\ RI DQ[LHW\ DQG WKDW LQ LWV ODWHU SKDVHV LW
ZRUN EXW LW IDLWKIXOO\ FRUUHVSRQGV WR P\ LQWHQWLRQ WR UHSUHVHQW
FRLQFLGHV FRPSOHWHO\ ZLWK WKH GUHDG RI WKH VXSHUHJR 7KH
WKHVHQVHRIJXLOWDVWKHPRVWLPSRUWDQWSUREOHPLQWKHHYROXWLRQ
UHODWLRQ RI DQ[LHW\ WR FRQVFLRXVQHVV PRUHRYHU LV FKDUDFWHUL]HG
RIFXOWXUHDQGWRFRQYH\WKDWWKHSULFHRISURJUHVVLQFLYLOL]DWLRQ
E\WKHVDPHH[WUDRUGLQDU\YDULDWLRQV6RPHZKHUHRURWKHUWKHUH
LV SDLG LQ IRUIHLWLQJ KDSSLQHVV WKURXJK WKH KHLJKWHQLQJ RI WKH
LV DOZD\V DQ[LHW\ KLGGHQ EHKLQG DOO V\PSWRPV DW RQH PRPHQW
VHQVHRIJXLOW:KDWVRXQGVSX]]OLQJLQWKLVVWDWHPHQWZKLFK
KRZHYHU LW VZHHSV LQWR FRQVFLRXVQHVV GURZQLQJ HYHU\WKLQJ
LV WKH ILQDO FRQFOXVLRQ RI RXU ZKROH LQYHVWLJDWLRQ LV SUREDEO\
HOVH ZLWK LWV FODPRXU DQG DW WKH QH[W LW VHFUHWHV LWVHOI VR
GXH WR WKH TXLWH SHFXOLDU UHODWLRQDV \HW FRPSOHWHO\ XQH[SODLQHG
FRPSOHWHO\WKDWZHDUHIRUFHGWRVSHDNRIXQFRQVFLRXVDQ[LHW\RU
WKHVHQVHRIJXLOWKDVWRRXUFRQVFLRXVQHVV,QWKHFRPPRQFDVHV
LI ZH ZDQW WR KDYH D FOHDQHU FRQVFLHQFH SV\FKRORJLFDOO\ VLQFH
RI UHPRUVH ZKLFK ZH WKLQN QRUPDO LW EHFRPHV FOHDUO\
DQ[LHW\ LV DIWHU DOO RQO\ D SHUFHSWLRQRI SRVVLELOLWLHV RI DQ[LHW\
SHUFHSWLEOH WR FRQVFLRXVQHVV LQGHHG ZH RIWHQ VSHDN RI
&RQVHTXHQWO\LWLVYHU\OLNHO\WKDWWKHVHQVHRIJXLOWSURGXFHGE\
FRQVFLRXVQHVVRIJXLOWLQVWHDGRIVHQVHRIJXLOW,QRXUVWXG\RI
FXOWXUH LV QRW SHUFHLYHG DV VXFK DQG UHPDLQV WR D JUHDW H[WHQW
WKHQHXURVHVLQZKLFKZHKDYHIRXQGLQYDOXDEOHFOXHVWRZDUGV
XQFRQVFLRXV RU FRPHV WR H[SUHVVLRQ DV D VRUW RI XQHDVLQHVV RU
DQ XQGHUVWDQGLQJ RI QRUPDO SHRSOH ZH ILQG VRPH YHU\
GLVFRQWHQWIRUZKLFKRWKHUPRWLYDWLRQVDUHVRXJKW7KHGLIIHUHQW
FRQWUDGLFWRU\ VWDWHV RI DIIDLUV LQ WKLV UHVSHFW ,Q RQH RI WKHVH
UHOLJLRQVDWDQ\UDWHKDYHQHYHURYHUORRNHGWKHSDUWSOD\HGE\
WKH VHQVH RI JXLOW LQ FLYLOL]DWLRQ :KDW LV PRUH WKH\ FRPH
IRUZDUG ZLWK D FODLP ZKLFK , KDYH QRW FRQVLGHUHG HOVHZKHUH
WRVDYHPDQNLQGIURPWKLVVHQVHRIJXLOWZKLFKWKH\FDOOVLQ 7RWHPDQG7DERR  
:HLQGHHGKDYHGUDZQRXUFRQFOXVLRQVIURPWKHZD\LQZKLFK
LQ &KULVWLDQLW\ WKLV VDOYDWLRQ LV ZRQWKH VDFULILFLDO GHDWK RI RQH
ZKRWKHUHZLWKWDNHVWKHZKROHRIWKHFRPPRQJXLOWRIDOOXSRQ ,W ZLOO QRW EH YHU\ LPSRUWDQW EXW LW PD\ EH MXVW DV ZHOO WR JR
KLPVHOIDERXW WKH RFFDVLRQ RQ ZKLFK WKLV SULPDO VHQVH RI JXLOW PRUHSUHFLVHO\LQWRWKHPHDQLQJRIFHUWDLQZRUGVOLNHVXSHUHJR
ZDV ILUVW DFTXLUHG WKDW LV WKH RFFDVLRQ ZKLFK ZDV DOVR WKH FRQVFLHQFHVHQVHRIJXLOWQHHGIRUSXQLVKPHQWUHPRUVHZKLFK
LQFHSWLRQRIFXOWXUH ZH KDYH SHUKDSV RIWHQ XVHG WRR ORRVHO\ DQG LQ SODFH RI RQH
DQRWKHU 7KH\ DOO UHODWH WR WKH VDPH VLWXDWLRQ EXW WKH\ GHQRWH
7KXVFRQVFLHQFHGRHVPDNHFRZDUGVRIXVDOO7KDWWKH GLIIHUHQWDVSHFWVRILW7KHVXSHUHJRLVDQDJHQF\RULQVWLWXWLRQ
XSEULQJLQJRI\RXQJSHRSOHDWWKHSUHVHQWGD\ LQ WKH PLQG ZKRVH H[LVWHQFH ZH KDYH LQIHUUHG &RQVFLHQFH LV D
FRQFHDOVIURPWKHPWKHSDUWVH[XDOLW\ZLOOSOD\LQWKHLUOLYHV IXQFWLRQZHDVFULEHDPRQJRWKHUVWRWKHVXSHUHJRLWFRQVLVWVRI
LVQRWWKHRQO\UHSURDFKZHDUHREOLJHGWREULQJDJDLQVW ZDWFKLQJRYHUDQGMXGJLQJWKHDFWLRQVDQGLQWHQWLRQVRIWKHHJR
LW ,W RIIHQGV WRR LQ QRW SUHSDULQJ WKHP IRU WKH DJJUHVVLRQV H[HUFLVLQJ WKH IXQFWLRQV RI D FHQVRU 7KH VHQVH RI JXLOW WKH
RIZKLFKWKH\DUHGHVWLQHGWREHFRPHWKHREMHFWV6HQGLQJ VHYHULW\ RI WKH VXSHUHJR LV WKHUHIRUH WKH VDPH WKLQJ DV WKH
WKH \RXQJ RXW LQWR OLIH ZLWK VXFK D IDOVH SV\FKRORJLFDO ULJRXU RI FRQVFLHQFH LW LV WKH SHUFHSWLRQ WKH HJR KDV WKDW LW LV
RULHQWDWLRQLVDVLIRQHZHUHWRHTXLSSHRSOHJRLQJRQD3RODU ZDWFKHG LQ WKLV ZD\ WKH HJRV DSSUHFLDWLRQ RI WKH WHQVLRQ
H[SHGLWLRQ ZLWK VXPPHU FORWKLQJ DQG PDSV RI WKH ,WDOLDQ EHWZHHQLWVVWULYLQJVDQGWKHVWDQGDUGVRIWKHVXSHUHJRDQGWKH
ODNHV2QHFDQFOHDUO\VHHWKDWHWKLFDOVWDQGDUGVDUHEHLQJ DQ[LHW\ WKDW OLHV EHKLQG DOO WKHVH UHODWLRQV WKH GUHDG RI WKDW
PLVXVHG LQ D ZD\ 7KH VWULFWQHVV RI WKHVH VWDQGDUGV ZRXOG FULWLFDO LQVWLWXWLRQ WKH QHHG IRU SXQLVKPHQW LV DQ LQVWLQFWXDO
QRWGRPXFKKDUPLIHGXFDWLRQZHUHWRVD\7KLVLVKRZ PDQLIHVWDWLRQ RQ WKH SDUW RI WKH HJR ZKLFK KDV EHFRPH
PHQ RXJKW WR EH LQ RUGHU WR EH KDSS\ DQG PDNH RWKHUV PDVRFKLVWLF XQGHU WKH LQIOXHQFH RI WKH VDGLVWLF VXSHUHJR L H
KDSS\EXW\RXKDYHWRUHFNRQZLWKWKHLUQRWEHLQJVR ZKLFK KDV EURXJKW D SDUW RI WKH LQVWLQFW RI GHVWUXFWLRQ DW ZRUN
,QVWHDGRIWKLVWKH\RXQJDUHPDGHWREHOLHYHWKDWHYHU\RQH ZLWKLQLWVHOILQWRWKHVHUYLFHRIDQHURWLFDWWDFKPHQWWRWKHVXSHU
HOVHFRQIRUPVWRWKHVWDQGDUGRIHWKLFVLHWKDW HJR:HRXJKWQRWWRVSHDNRIFRQVFLHQFHEHIRUHDVXSHUHJRLV
HYHU\RQHHOVHLVJRRG$QGWKHQRQWKLVLVEDVHGWKHGHPDQG GHPRQVWUDEOHDVWRFRQVFLRXVQHVVRIJXLOWZHPXVWDGPLWWKDWLW
WKDWWKH\RXQJVKDOOEHVRWRR FRPHV LQWR EHLQJ EHIRUH WKH VXSHUHJR WKHUHIRUH EHIRUH
FRQVFLHQFH$WWKDWWLPHLWLVWKHGLUHFWH[SUHVVLRQRIWKHGUHDGRI
,PHDQLQ7KH)XWXUHRIDQ,OOXVLRQ H[WHUQDODXWKRULW\WKHUHFRJQLWLRQRIWKHWHQVLRQEHWZHHQWKHHJR
DQG WKLV ODWWHU LW LV WKH GLUHFW GHULYDWLYH RI WKH FRQIOLFW EHWZHHQ
WKH QHHG IRU SDUHQWDO ORYH DQG WKH XUJHQF\ WRZDUGV LQVWLQFWXDO KDVDFWXDOO\EHHQFRPPLWWHGDVDOOWKHZRUOGNQRZV7KHFRQIOLFW
JUDWLILFDWLRQDQGLWLVWKHWKZDUWLQJRIWKLVXUJHQF\WKDWSURYRNHV RIDPELYDOHQFHEHWZHHQWKHWZRSULPDOLQVWLQFWVOHDYHVWKHVDPH
WKH WHQGHQF\ WR DJJUHVVLRQ ,W LV EHFDXVH WKHVH WZR GLIIHUHQW LPSUHVV RQ WKH SV\FKRORJLFDO VLWXDWLRQ LUUHVSHFWLYH RI WKH
YHUVLRQV RI WKH VHQVH RI JXLOWRQH DULVLQJ IURP GUHDG RI WKH FKDQJH WKDW KDV WDNHQ SODFH LQ WKLV $ WHPSWDWLRQ DULVHV WR ORRN
H[WHUQDO DQG WKH RWKHU IURP GUHDG RI WKH LQQHU DXWKRULW\ DUH KHUH IRU DQ H[SODQDWLRQ RI WKH P\VWHU\ RI WKH YDU\LQJ UHODWLRQ
VXSHULPSRVHGRQHRQWKHRWKHUWKDWRXULQVLJKWLQWRWKHUHODWLRQV EHWZHHQWKHVHQVHRIJXLOWDQGFRQVFLRXVQHVV7KHVHQVHRIJXLOW
RIFRQVFLHQFHKDVEHHQKDPSHUHGLQVRPDQ\ZD\V5HPRUVHLV ZKLFKLVGXHWRUHPRUVHIRUDQHYLOGHHGPXVWDOZD\VKDYHEHHQ
D JHQHUDO WHUP GHQRWLQJ WKH HJRV UHDFWLRQ XQGHU D VSHFLDO IRUP FRQVFLRXVWKDWGXHWRDSHUFHSWLRQRIDQHYLOLPSXOVHFRXOGKDYH
RI WKH VHQVH RI JXLOW LW LQFOXGHV WKH DOPRVW XQDOWHUHG VHQVRU\ UHPDLQHG XQFRQVFLRXV %XW LW FDQQRW EH DV VLPSOH DV WKDW WKH
PDWHULDOEHORQJLQJWRWKHDQ[LHW\WKDWLVDWZRUNEHKLQGWKHVHQVH REVHVVLRQDO QHXURVLV FRQWUDGLFWV LW HPSKDWLFDOO\ 7KH VHFRQG
RI JXLOW LW LV LWVHOI D SXQLVKPHQW DQG PD\ LQFOXGH WKH QHHG IRU FRQWUDGLFWLRQ ZDV WKDW WKH DJJUHVVLYH HQHUJ\ ZLWK ZKLFK RQH
SXQLVKPHQW LW WRR WKHUHIRUH PD\ RFFXU EHIRUH FRQVFLHQFH KDV LPDJLQHG WKH VXSHUHJR WR EH HQGRZHG ZDV DFFRUGLQJ WR RQH
GHYHORSHG YLHZPHUHO\DFRQWLQXDWLRQRIWKHSXQLWLYHHQHUJ\EHORQJLQJWR
H[WHUQDODXWKRULW\SUHVHUYHGZLWKLQWKHPLQGZKHUHDVDFFRUGLQJ
WR DQRWKHU YLHZ LW FRQVLVWHG RQ WKH FRQWUDU\ RI DJJUHVVLYH
)XUWKHU LW ZLOO GR QR KDUP IRU XV WR UHYLHZ RQFH PRUH WKH HQHUJ\ RULJLQDWLQJ LQ WKH VHOI OHYHOOHG DJDLQVW WKLV LQKLELWLQJ
FRQWUDGLFWLRQV ZKLFK KDYH FRQIXVHG XV DW WLPHV GXULQJ RXU DXWKRULW\EXWQRWDOORZHGWRGLVFKDUJHLWVHOILQDFWLRQV7KHILUVW
HQTXLULHV 7KH VHQVH RI JXLOW ZH VDLG DW RQH SRLQW ZDV WKH YLHZ VHHPHG WR DFFRUG EHWWHU ZLWK WKH KLVWRU\ RI WKH VHQVH RI
FRQVHTXHQFHRIXQFRPPLWWHGDJJUHVVLRQVEXWDQRWKHUWLPHDQG JXLOWWKHVHFRQGZLWKWKHWKHRU\RILW0RUHVHDUFKLQJUHIOHFWLRQ
LQSDUWLFXODULQWKHFDVHRILWVKLVWRULFDOEHJLQQLQJWKHPXUGHURI KDV UHVROYHG WKLV DSSDUHQWO\ LUUHFRQFLODEOH FRQWUDGLFWLRQ DOPRVW
WKH IDWKHU LW ZDV WKH FRQVHTXHQFH RI DQ DJJUHVVLRQ WKDW ZDV WRRFRPSOHWHO\ZKDWUHPDLQHGDVHVVHQWLDODQGFRPPRQWRERWK
FDUULHG RXW :H DOVR IRXQG D ZD\ RXW RI WKLV GLIILFXOW\ 7KH ZDV WKDW LQ ERWK FDVHV ZH ZHUH GHDOLQJ ZLWK DQ DJJUHVVLRQ WKDW
GHYHORSPHQWRIWKHLQQHUDXWKRULW\WKHVXSHUHJRZDVSUHFLVHO\ KDG EHHQ WXUQHG LQZDUG &OLQLFDO REVHUYDWLRQ PRUHRYHU UHDOO\
ZKDWUDGLFDOO\DOWHUHGWKHZKROHVLWXDWLRQ%HIRUHWKLVWKHVHQVH SHUPLWVXVWRGLVWLQJXLVKWZRVRXUFHVIRUWKHDJJUHVVLYHQHVVZH
RIJXLOWFRLQFLGHGZLWKUHPRUVHZHREVHUYHLQVD\LQJWKLVWKDW DVFULEHWRWKHVXSHUHJRHDFKRIZKLFKLQDQ\JLYHQFDVHPD\EH
WKHWHUPUHPRUVHLVWREHUHVHUYHGIRUWKHUHDFWLRQDIWHUDQDFWXDO RSHUDWLQJ SUHGRPLQDQWO\ EXW ZKLFK XVXDOO\ DUH ERWK DW ZRUN
SHUIRUPDQFH RI DQ DJJUHVVLYH GHHG $IWHU WKLV WKH RPQLVFLHQFH WRJHWKHU
RI WKH VXSHUHJR UREEHG WKH GLVWLQFWLRQ EHWZHHQ LQWHQGHG
DJJUHVVLRQV DQG DJJUHVVLRQV FRPPLWWHG RI LWV VLJQLILFDQFH D 7KLV , WKLQN LV WKH SODFH WR VXJJHVW WKDW D SURSRVDO ZKLFK ,
PHUHLQWHQWLRQWRFRPPLWDQDFWRIYLROHQFHFRXOGWKHQHYRNHD SUHYLRXVO\ SXW IRUZDUG DV D SURYLVLRQDO DVVXPSWLRQ VKRXOG EH
VHQVHRIJXLOWDVSV\FKRDQDO\VLVKDVIRXQGDVZHOODVRQHZKLFK WDNHQ LQ HDUQHVW ,Q WKH ODWHVW DQDO\WLFDO OLWHUDWXUH  D
SUHGLOHFWLRQ KDV EHHQ VKRZQ IRU WKH YLHZ WKDW DQ\ NLQG RI IRUPXODWLRQZKHQDQLQVWLQFWXDOWUHQGXQGHUJRHVUHSUHVVLRQLWV
SULYDWLRQ DQ\ WKZDUWHG LQVWLQFWXDO JUDWLILFDWLRQ UHVXOWV LQ D OLELGLQDO HOHPHQWV DUH WUDQVIRUPHG LQWR V\PSWRPV DQG LWV
KHLJKWHQLQJ RI WKH VHQVH RI JXLOW RU PD\ GR VR , EHOLHYH RQH DJJUHVVLYH FRPSRQHQWV LQWR D VHQVH RI JXLOW (YHQ LI WKLV
REWDLQV D JUHDW VLPSOLILFDWLRQ RI WKHRU\ LI RQH UHJDUGV WKLV DV VWDWHPHQW LV RQO\ DFFXUDWH DV DQ DSSUR[LPDWLRQ LW PHULWV RXU
YDOLG RQO\ IRU WKH DJJUHVVLYH LQVWLQFWV DQG WKDW OLWWOH ZLOO EH LQWHUHVW
IRXQG WR FRQWUDGLFW WKLV DVVXPSWLRQ +RZ WKHQ LV LW WR EH
H[SODLQHG G\QDPLFDOO\ DQG HFRQRPLFDOO\ WKDW D KHLJKWHQLQJ RI  ,Q SDUWLFXODU LQ FRQWULEXWLRQV E\ (UQHVW -RQHV 6XVDQ
WKHVHQVHRIJXLOWVKRXOGDSSHDULQSODFHRIDQXQIXOILOOHGHURWLF ,VDDFV0HODQLH.OHLQDOVRDV,XQGHUVWDQGLQWKRVHRI5HLN
GHVLUH" 7KLV FDQ VXUHO\ RQO\ KDSSHQ LQ D URXQGDERXW ZD\ WKH DQG$OH[DQGHU
WKZDUWLQJ RI WKH HURWLF JUDWLILFDWLRQ SURYRNHV DQ DFFHVV RI
DJJUHVVLYHQHVV DJDLQVW WKH SHUVRQ ZKR LQWHUIHUHG ZLWK WKH
JUDWLILFDWLRQDQGWKHQWKLVWHQGHQF\WRDJJUHVVLRQLQLWVWXUQKDV 6RPH UHDGHUV RI WKLV HVVD\ WRR PD\ EH XQGHU WKH LPSUHVVLRQ
LWVHOIWREHVXSSUHVVHG6RWKHQLWLVDIWHUDOORQO\WKHDJJUHVVLRQ WKDW WKH IRUPXOD RI WKH VWUXJJOH EHWZHHQ (URV DQG WKH GHDWK
ZKLFKLVFKDQJHGLQWRJXLOWE\EHLQJVXSSUHVVHGDQGPDGHRYHU LQVWLQFW KDV EHHQ UHLWHUDWHG WRR RIWHQ ,W LV VXSSRVHG WR
WR WKH VXSHUHJR , DP FRQYLQFHG WKDW YHU\ PDQ\ SURFHVVHV ZLOO FKDUDFWHUL]HWKHFXOWXUDOSURFHVVZKLFKHYROYHVLQKXPDQLW\EXW
DGPLWRIPXFKVLPSOHUDQGFOHDUHUH[SODQDWLRQLIZHUHVWULFWWKH LW KDV EHHQ UHODWHG DOVR WR WKH GHYHORSPHQW RI WKH LQGLYLGXDO
ILQGLQJV RI SV\FKRDQDO\VLV LQ UHVSHFW RI WKH RULJLQ RI WKH VHQVH DQG EHVLGHV WKLV LV VXSSRVHG WR KDYH UHYHDOHG WKH VHFUHW RI
RI JXLOW WR WKH DJJUHVVLYH LQVWLQFWV 5HIHUHQFH WR WKH FOLQLFDO RUJDQLF OLIH LQ JHQHUDO ,W EHFRPHV QHFHVVDU\ IRU XV WR H[DPLQH
PDWHULDO KHUH JLYHV XV QR XQHTXLYRFDO DQVZHU EHFDXVH WKH UHODWLRQ RI WKHVH WKUHH SURFHVVHV WR RQH DQRWKHU 1RZ WKH
DFFRUGLQJ WR RXU RZQ K\SRWKHVLV WKH WZR NLQGV RI LQVWLQFWV UHSHWLWLRQRIWKHVDPHIRUPXODLVYLQGLFDWHGE\WKHFRQVLGHUDWLRQ
KDUGO\HYHUDSSHDULQDSXUHIRUPXQPL[HGZLWKHDFKRWKHUEXW WKDW WKH FXOWXUDO SURFHVVHV ERWK LQ KXPDQLW\ DQG LQ WKH
WKH LQYHVWLJDWLRQ RI H[WUHPH FDVHV ZRXOG SUREDEO\ SRLQW LQ WKH GHYHORSPHQW RI DQ LQGLYLGXDO DUH OLIHSURFHVVHV FRQVHTXHQWO\
GLUHFWLRQ,DQWLFLSDWH,DPWHPSWHGWRH[WUDFWRXUILUVWDGYDQWDJH WKH\ PXVW ERWK SDUWDNH RI WKH PRVW XQLYHUVDO FKDUDFWHULVWLF RI
IURPWKLVQDUURZHUFRQFHSWLRQE\DSSO\LQJLWWRWKHUHSUHVVLRQ OLIH 2Q WKH RWKHU KDQG HYLGHQFH RI WKH SUHVHQFH RI WKLV
SURFHVV 7KH V\PSWRPV RI QHXURVLV DV ZH KDYH OHDUQHG DUH XQLYHUVDOFKDUDFWHULVWLFGRHVQRWKHOSXVWRGLVFULPLQDWHXQOHVVLW
HVVHQWLDOO\ VXEVWLWXWLYH JUDWLILFDWLRQV IRU XQIXOILOOHG VH[XDO LV IXUWKHU QDUURZHG GRZQ E\ VSHFLDO TXDOLILFDWLRQV :H FDQ
ZLVKHV,QWKHFRXUVHRIRXUDQDO\WLFZRUNZHKDYHIRXQGWRRXU WKHUHIRUH VHW RXU PLQGV DW UHVW RQO\ LI ZH VD\ WKDW WKH FXOWXUDO
VXUSULVHWKDWSHUKDSVHYHU\QHXURVLVPDVNVDFHUWDLQDPRXQWRI SURFHVV LV WKH SDUWLFXODU PRGLILFDWLRQ XQGHUJRQH E\ WKH OLIH
XQFRQVFLRXV VHQVH RI JXLOW ZKLFK LQ LWV WXUQ UHLQIRUFHV WKH SURFHVVXQGHUWKHLQIOXHQFHRIWKHWDVNVHWEHIRUHLWE\(URVDQG
V\PSWRPV E\ H[SORLWLQJ WKHP DV SXQLVKPHQW 2QH LV QRZ VWLPXODWHGE\$QDQNHH[WHUQDOQHFHVVLW\DQGWKLVWDVNLVWKDWRI
LQFOLQHG WR VXJJHVW WKH IROORZLQJ VWDWHPHQW DV D SRVVLEOH XQLWLQJ VLQJOH KXPDQ EHLQJV LQWR D ODUJHU XQLW\ ZLWK OLELGLQDO
DWWDFKPHQWV EHWZHHQ WKHP :KHQ KRZHYHU ZH FRPSDUH WKH FXOWXUDO RQH XVXDOO\ FRQWHQWV LWVHOI ZLWK LQVWLWXWLQJ UHVWULFWLRQV
FXOWXUDOSURFHVVLQKXPDQLW\ZLWKWKHSURFHVVRIGHYHORSPHQWRU %XW WKLQJV DUH GLIIHUHQW LQ WKH GHYHORSPHQW RI FXOWXUH KHUH IDU
XSEULQJLQJ LQ DQ LQGLYLGXDO KXPDQ EHLQJ ZH VKDOO FRQFOXGH WKH PRVW LPSRUWDQW DLP LV WKDW RI FUHDWLQJ D VLQJOH XQLW\ RXW RI
ZLWKRXWPXFKKHVLWDWLRQWKDWWKHWZRDUHYHU\VLPLODULQQDWXUH LQGLYLGXDO PHQ DQG ZRPHQ ZKLOH WKH REMHFWLYH RI KDSSLQHVV
LI QRW LQ IDFW WKH VDPH SURFHVV DSSOLHG WR D GLIIHUHQW NLQG RI WKRXJK VWLOO SUHVHQW LV SXVKHG LQWR WKH EDFNJURXQG LW DOPRVW
REMHFW 7KH FLYLOL]LQJ SURFHVV LQ WKH KXPDQ VSHFLHV LV QDWXUDOO\ VHHPVDVLIKXPDQLW\FRXOGEHPRVWVXFFHVVIXOO\XQLWHGLQWRRQH
PRUH RI DQ DEVWUDFWLRQ WKDQ WKH GHYHORSPHQW RI DQ LQGLYLGXDO JUHDWZKROHLIWKHUHZHUHQRQHHGWRWURXEOHDERXWWKHKDSSLQHVV
DQGWKHUHIRUHKDUGHUWRDSSUHKHQGLQFRQFUHWHWHUPVQRUVKRXOG RILQGLYLGXDOV7KHSURFHVVRIGHYHORSPHQWLQLQGLYLGXDOVPXVW
WKHGLVFRYHU\RIDQDORJLHVEHSXVKHGWRH[WUHPHVEXWLQYLHZRI WKHUHIRUH EH DGPLWWHG WR KDYH LWV VSHFLDO IHDWXUHV ZKLFK DUH QRW
WKHVLPLODUFKDUDFWHURIWKHDLPVRIWKHWZRSURFHVVHVLQRQHWKH UHSHDWHGLQWKHFXOWXUDOHYROXWLRQRIKXPDQLW\WKHWZRSURFHVVHV
LQFRUSRUDWLRQ RI DQ LQGLYLGXDO DV D PHPEHU RI D JURXS DQG LQ RQO\ QHFHVVDULO\ FRLQFLGH LQ VR IDU DV WKH ILUVW DOVR LQFOXGHV WKH
WKH RWKHU WKH FUHDWLRQ RI D VLQJOH JURXS RXW RI PDQ\ DLPRILQFRUSRUDWLRQLQWRWKHFRPPXQLW\
LQGLYLGXDOVWKH VLPLODULW\ RI WKH PHDQV HPSOR\HG DQG RI WKH
UHVXOWVREWDLQHGLQWKHWZRFDVHVLVQRWVXUSULVLQJ,QYLHZRILWV
H[FHSWLRQDOLPSRUWDQFHZHPXVWQRORQJHUSRVWSRQHPHQWLRQRI -XVWDVDSODQHWFLUFOHVURXQGLWVFHQWUDOERG\ZKLOHDWWKHVDPH
RQH IHDWXUH GLIIHUHQWLDWLQJ WKH WZR SURFHVVHV 7KH GHYHORSPHQW WLPH URWDWLQJ RQ LWV RZQ D[LV VR WKH LQGLYLGXDO PDQ WDNHV KLV
RIWKHLQGLYLGXDOLVRUGHUHGDFFRUGLQJWRWKHSURJUDPODLGGRZQ SDUW LQ WKH FRXUVH RI KXPDQLW\V GHYHORSPHQW DV KH JRHV RQ KLV
E\ WKH SOHDVXUHSULQFLSOH QDPHO\ WKH DWWDLQPHQW RI KDSSLQHVV ZD\ WKURXJK OLIH %XW WR RXU GXOO H\HV WKH SOD\ RI IRUFHV LQ WKH
DQG WR WKLV PDLQ REMHFWLYH LW KROGV ILUPO\ WKH LQFRUSRUDWLRQ RI KHDYHQV VHHPV VHW IDVW LQ D QHYHUYDU\LQJ VFKHPH WKRXJK LQ
WKHLQGLYLGXDODVDPHPEHURIDFRPPXQLW\RUKLVDGDSWDWLRQWR RUJDQLF OLIH ZH FDQ VWLOO VHH KRZ WKH IRUFHV FRQWHQG ZLWK RQH
LW VHHPV OLNH DQ DOPRVW XQDYRLGDEOH FRQGLWLRQ ZKLFK KDV WR EH DQRWKHU DQG WKH UHVXOWV RI WKH FRQIOLFW FKDQJH IURP GD\ WR GD\
ILOOHG EHIRUH KH FDQ DWWDLQ WKLV REMHFWLYH RI KDSSLQHVV ,I KH 6R LQ HYHU\ LQGLYLGXDO WKH WZR WUHQGV RQH WRZDUGV SHUVRQDO
FRXOG DFKLHYH LW ZLWKRXW IXOILOOLQJ WKLV FRQGLWLRQ LW ZRXOG KDSSLQHVVDQGWKHRWKHUWRZDUGVXQLW\ZLWKWKHUHVWRIKXPDQLW\
SHUKDSV EH EHWWHU 7R H[SUHVV LW GLIIHUHQWO\ ZH PD\ VD\ PXVW FRQWHQG ZLWK HDFK RWKHU VR PXVW WKH WZR SURFHVVHV RI
,QGLYLGXDOGHYHORSPHQWVHHPVWRXVDSURGXFWRIWKHLQWHUSOD\RI LQGLYLGXDO DQG RI FXOWXUDO GHYHORSPHQW RSSRVH HDFK RWKHU DQG
WZRWUHQGVWKHVWULYLQJIRUKDSSLQHVVJHQHUDOO\FDOOHGHJRLVWLF GLVSXWH WKH JURXQG DJDLQVW HDFK RWKHU 7KLV VWUXJJOH EHWZHHQ
DQGWKHLPSXOVHWRZDUGVPHUJLQJZLWKRWKHUVLQWKHFRPPXQLW\ LQGLYLGXDO DQG VRFLHW\ KRZHYHU LV QRW GHULYHG IURP WKH
ZKLFK ZH FDOO DOWUXLVWLF 1HLWKHU RI WKHVH GHVFULSWLRQV JRHV IDU DQWDJRQLVP RI WKH SULPDO LQVWLQFWV (URV DQG GHDWK ZKLFK DUH
EHQHDWKWKHVXUIDFH,QLQGLYLGXDOGHYHORSPHQWDVZHKDYHVDLG SUREDEO\ LUUHFRQFLODEOH LW LV D GLVVHQVLRQ LQ WKH FDPS RI WKH
WKH PDLQ DFFHQW IDOOV RQ WKH HJRLVWLF WUHQG WKH VWULYLQJ IRU OLELGR LWVHOI FRPSDUDEOH WR WKH FRQWHVW EHWZHHQ WKH HJR DQG LWV
KDSSLQHVV ZKLOH WKH RWKHU WHQGHQF\ ZKLFK PD\ EH FDOOHG WKH REMHFWVIRUDVKDUHRIWKHOLELGRDQGLWGRHVHYHQWXDOO\DGPLWRI
DVROXWLRQLQWKHLQGLYLGXDODVZHPD\KRSHLWZLOODOVRGRLQWKH FRQVFLRXVQHVVZKHQWKH\SURFHHGIURPWKHJURXSWKDQWKH\FDQ
IXWXUHRIFLYLOL]DWLRQKRZHYHUJUHDWO\LWPD\RSSUHVVWKHOLYHVRI EH LQ WKH LQGLYLGXDO ,Q WKH ODWWHU ZKHQ WHQVLRQ DULVHV WKH
LQGLYLGXDOVDWWKHSUHVHQWWLPH DJJUHVVLRQVRIWKHVXSHUHJRYRLFLQJLWVQRLV\UHSURDFKHVDUHDOO
WKDW LV SHUFHLYHG ZKLOH LWV LQMXQFWLRQV WKHPVHOYHV RIWHQ UHPDLQ
7KH DQDORJ\ EHWZHHQ WKH SURFHVV RI FXOWXUDO HYROXWLRQ DQG WKH XQFRQVFLRXV LQ WKH EDFNJURXQG ,I ZH EULQJ WKHP WR WKH
SDWK RI LQGLYLGXDO GHYHORSPHQW PD\ EH FDUULHG IXUWKHU LQ DQ NQRZOHGJHRIFRQVFLRXVQHVVZHILQGWKDWWKH\FRLQFLGHZLWKWKH
LPSRUWDQWUHVSHFW,WFDQEHPDLQWDLQHGWKDWWKHFRPPXQLW\WRR GHPDQGV RI WKH SUHYDLOLQJ FXOWXUDO VXSHUHJR $W WKLV SRLQW WKH
GHYHORSVDVXSHUHJRXQGHUZKRVHLQIOXHQFHFXOWXUDOHYROXWLRQ WZR SURFHVVHV WKDW RI WKH HYROXWLRQ RI WKH JURXS DQG WKH
SURFHHGV ,W ZRXOG EH DQ HQWLFLQJ WDVN IRU DQ DXWKRULW\ RQ GHYHORSPHQW RI WKH LQGLYLGXDO DUH DOZD\V ILUPO\ PRUWLVHG
KXPDQ V\VWHPV RI FXOWXUH WR ZRUN RXW WKLV DQDORJ\ LQ VSHFLILF WRJHWKHU VR WR VSHDN &RQVHTXHQWO\ PDQ\ RI WKH HIIHFWV DQG
FDVHV , ZLOO FRQILQH P\VHOI WR SRLQWLQJ RXW FHUWDLQ VWULNLQJ SURSHUWLHVRIWKHVXSHUHJRFDQEHPRUHHDVLO\GHWHFWHGWKURXJK
GHWDLOV 7KH VXSHUHJR RI DQ\ JLYHQ HSRFK RI FLYLOL]DWLRQ LWVRSHUDWLRQVLQWKHJURXSWKDQLQWKHLQGLYLGXDO
RULJLQDWHVLQWKHVDPHZD\DVWKDWRIDQLQGLYLGXDOLWLVEDVHGRQ
WKH LPSUHVVLRQ OHIW EHKLQG WKHP E\ JUHDW OHDGLQJ SHUVRQDOLWLHV
PHQ RI RXWVWDQGLQJ IRUFH RI PLQG RU PHQ LQ ZKRP VRPH RQH 7KH FXOWXUDO VXSHUHJR KDV HODERUDWHG LWV LGHDOV DQG HUHFWHG LWV
KXPDQ WHQGHQF\ KDV GHYHORSHG LQ XQXVXDO VWUHQJWK DQG SXULW\ VWDQGDUGV7KRVHRILWVGHPDQGVZKLFKGHDOZLWKWKHUHODWLRQVRI
RIWHQIRUWKDWUHDVRQYHU\GLVSURSRUWLRQDWHO\,QPDQ\LQVWDQFHV KXPDQEHLQJVWRRQHDQRWKHUDUHFRPSULVHGXQGHUWKHQDPHRI
WKH DQDORJ\ JRHV VWLOO IXUWKHU LQ WKDW GXULQJ WKHLU OLYHV RIWHQ HWKLFV7KHJUHDWHVWYDOXHKDVDWDOOWLPHVEHHQVHWXSRQV\VWHPV
HQRXJKHYHQLIQRWDOZD\VVXFKSHUVRQVDUHULGLFXOHGE\RWKHUV RI HWKLFV DV LI PHQ KDG H[SHFWHG WKHP LQ SDUWLFXODU WR DFKLHYH
LOOXVHGRUHYHQFUXHOO\GRQHWRGHDWKMXVWDVKDSSHQHGZLWKWKH VRPHWKLQJ HVSHFLDOO\ LPSRUWDQW $QG HWKLFV GRHV LQ IDFW GHDO
SULPDO IDWKHU ZKR DOVR URVH DJDLQ WR EHFRPH D GHLW\ ORQJ DIWHU SUHGRPLQDQWO\ ZLWK WKH SRLQW ZKLFK LV HDVLO\ VHHQ WR EH WKH
KLVGHDWKE\YLROHQFH7KHPRVWVWULNLQJH[DPSOHRIWKLVGRXEOH VRUHVW RI DOO LQ DQ\ VFKHPH RI FLYLOL]DWLRQ (WKLFV PXVW EH
IDWH LV WKH ILJXUH RI -HVXV &KULVW LI LQGHHG LW GRHV QRW LWVHOI UHJDUGHG WKHUHIRUH DV D WKHUDSHXWLF HIIRUW DV DQ HQGHDYRXU WR
EHORQJWRWKHUHDOPRIP\WKRORJ\ZKLFKFDOOHGLWLQWREHLQJRXW DFKLHYHVRPHWKLQJWKURXJKWKHVWDQGDUGVLPSRVHGE\WKHVXSHU
RI D GLP PHPRU\ RI WKDW SULPRUGLDO HYHQW $QRWKHU SRLQW RI HJR ZKLFK KDG QRW EHHQ DWWDLQHG E\ WKH ZRUN RI FLYLOL]DWLRQ LQ
DJUHHPHQW LV WKDW WKH FXOWXUDO VXSHUHJR MXVW OLNH WKDW RI DQ RWKHU ZD\V :H DOUHDG\ NQRZLW LV ZKDW ZH KDYH EHHQ
LQGLYLGXDOVHWVXSKLJKLGHDOVDQGVWDQGDUGVDQGWKDWIDLOXUHWR GLVFXVVLQJWKDW WKH TXHVWLRQ LV KRZ WR GLVORGJH WKH JUHDWHVW
IXOILO WKHP LV SXQLVKHG E\ ERWK ZLWK DQ[LHW\ RI FRQVFLHQFH ,Q REVWDFOH WR FLYLOL]DWLRQ WKH FRQVWLWXWLRQDO WHQGHQF\ LQ PHQ WR
WKLV SDUWLFXODU LQGHHG ZH FRPH DFURVV WKH UHPDUNDEOH DJJUHVVLRQV DJDLQVW RQH DQRWKHU DQG IRU WKDW YHU\ UHDVRQ WKH
FLUFXPVWDQFH WKDW WKH PHQWDO SURFHVVHV FRQFHUQHG KHUH DUH FRPPDQGPHQW WR ORYH RQHV QHLJKERXU DV RQHVHOISUREDEO\ WKH
DFWXDOO\ PRUH IDPLOLDU WR XV DQG PRUH DFFHVVLEOH WR PRVW UHFHQW RI WKH FXOWXUDO VXSHUHJRV GHPDQGVLV HVSHFLDOO\
LQWHUHVWLQJ WR XV ,Q RXU LQYHVWLJDWLRQV DQG RXU WKHUDS\ RI WKH 1DWXUDOHWKLFVDVLWLVFDOOHGKDVQRWKLQJWRRIIHUKHUHEH\RQG
QHXURVHVZHFDQQRWDYRLGILQGLQJIDXOWZLWKWKHVXSHUHJRRIWKH WKHQDUFLVVLVWLFVDWLVIDFWLRQRIWKLQNLQJRQHVHOIEHWWHUWKDQRWKHUV
LQGLYLGXDO RQ WZR FRXQWV LQ FRPPDQGLQJ DQG SURKLELWLQJ ZLWK 7KH YDULHW\ RI HWKLFV WKDW OLQNV LWVHOI ZLWK UHOLJLRQ EULQJV LQ DW
VXFKVHYHULW\LWWURXEOHVWRROLWWOHDERXWWKHKDSSLQHVVRIWKHHJR WKLV SRLQW LWV SURPLVHV RI D EHWWHU IXWXUH OLIH , VKRXOG LPDJLQH
DQGLWIDLOVWRWDNHLQWRDFFRXQWVXIILFLHQWO\WKHGLIILFXOWLHVLQWKH WKDW DV ORQJ DV YLUWXH LV QRW UHZDUGHG LQ WKLV OLIH HWKLFV ZLOO
ZD\ RI REH\LQJ LWWKH VWUHQJWK RI LQVWLQFWXDO FUDYLQJV LQ WKH LG SUHDFK LQ YDLQ , WRR WKLQN LW XQTXHVWLRQDEOH WKDW DQ DFWXDO
DQGWKHKDUGVKLSVRIH[WHUQDOHQYLURQPHQW&RQVHTXHQWO\LQRXU FKDQJH LQ PHQV DWWLWXGH WR SURSHUW\ ZRXOG EH RI PRUH KHOS LQ
WKHUDS\ ZH RIWHQ ILQG RXUVHOYHV REOLJHG WR GR EDWWOH ZLWK WKH WKLV GLUHFWLRQ WKDQ DQ\ HWKLFDO FRPPDQGV EXW DPRQJ WKH
VXSHUHJRDQGZRUNWRPRGHUDWHLWVGHPDQGV([DFWO\WKHVDPH 6RFLDOLVWV WKLV SURSRVDO LV REVFXUHG E\ QHZ LGHDOLVWLF
REMHFWLRQV FDQ EH PDGH DJDLQVW WKH HWKLFDO VWDQGDUGV RI WKH H[SHFWDWLRQV GLVUHJDUGLQJ KXPDQ QDWXUH ZKLFK GHWUDFW IURP LWV
FXOWXUDO VXSHUHJR ,W WRR GRHV QRW WURXEOH HQRXJK DERXW WKH YDOXHLQDFWXDOSUDFWLFH
PHQWDOFRQVWLWXWLRQRIKXPDQEHLQJVLWHQMRLQVDFRPPDQGDQG
QHYHU DVNV ZKHWKHU RU QRW LW LV SRVVLEOH IRU WKHP WR REH\ LW ,W
SUHVXPHV RQ WKH FRQWUDU\ WKDW D PDQV HJR LV SV\FKRORJLFDOO\ ,WVHHPVWRPHWKDWWKHSRLQWRIYLHZZKLFKVHHNVWRIROORZWKH
FDSDEOH RI DQ\WKLQJ WKDW LV UHTXLUHG RI LWWKDW KLV HJR KDV SKHQRPHQD RI FXOWXUDO HYROXWLRQ DV PDQLIHVWDWLRQV RI D VXSHU
XQOLPLWHGSRZHURYHUKLVLG7KLVLVDQHUURUHYHQLQVRFDOOHG HJR SURPLVHV WR \LHOG VWLOO IXUWKHU GLVFRYHULHV , DP FRPLQJ
QRUPDO SHRSOH WKH SRZHU RI FRQWUROOLQJ WKH LG FDQQRW EH TXLFNO\WRDQHQG7KHUHLVRQHTXHVWLRQKRZHYHUZKLFK,FDQ
LQFUHDVHG EH\RQG FHUWDLQ OLPLWV ,I RQH DVNV PRUH RI WKHP RQH KDUGO\ LJQRUH ,I WKH HYROXWLRQ RI FLYLOL]DWLRQ KDV VXFK D
SURGXFHV UHYROW RU QHXURVLV LQ LQGLYLGXDOV RU PDNHV WKHP IDUUHDFKLQJ VLPLODULW\ ZLWK WKH GHYHORSPHQW RI DQ LQGLYLGXDO
XQKDSS\ 7KH FRPPDQG WR ORYH RXU QHLJKERXUV DV RXUVHOYHV LV DQG LI WKH VDPH PHWKRGV DUH HPSOR\HG LQ ERWK ZRXOG QRW WKH
WKHVWURQJHVWGHIHQFHWKHUHLVDJDLQVWKXPDQDJJUHVVLYHQHVVDQG GLDJQRVLVEHMXVWLILHGWKDWPDQ\V\VWHPVRIFLYLOL]DWLRQRUHSRFKV
LWLVDVXSHUODWLYHH[DPSOHRIWKHXQSV\FKRORJLFDODWWLWXGHRIWKH RILWSRVVLEO\HYHQWKHZKROHRIKXPDQLW\KDYHEHFRPH QHXURWLF
FXOWXUDOVXSHUHJR7KHFRPPDQGLVLPSRVVLEOHWRIXOILOVXFKDQ XQGHUWKHSUHVVXUHRIWKHFLYLOL]LQJWUHQGV"7RDQDO\WLFGLVVHFWLRQ
HQRUPRXV LQIODWLRQ RI ORYH FDQ RQO\ ORZHU LWV YDOXH DQG QRW RI WKHVH QHXURVHV WKHUDSHXWLF UHFRPPHQGDWLRQV PLJKW IROORZ
UHPHG\ WKH HYLO &LYLOL]DWLRQ SD\V QR KHHG WR DOO WKLV LW PHUHO\ ZKLFKFRXOGFODLPDJUHDWSUDFWLFDOLQWHUHVW,ZRXOGQRWVD\WKDW
SUDWHV WKDW WKH KDUGHU LW LV WR REH\ WKH PRUH ODXGDEOH WKH VXFK DQ DWWHPSW WR DSSO\ SV\FKRDQDO\VLV WR FLYLOL]HG VRFLHW\
REHGLHQFH 7KH IDFW UHPDLQV WKDW DQ\RQH ZKR IROORZV VXFK ZRXOGEHIDQFLIXORUGRRPHGWRIUXLWOHVVQHVV%XWLWEHKRRYHVXV
SUHDFKLQJLQWKHSUHVHQWVWDWHRIFLYLOL]DWLRQRQO\SXWVKLPVHOIDW WREHYHU\FDUHIXOQRWWRIRUJHWWKDWDIWHUDOOZHDUHGHDOLQJRQO\
D GLVDGYDQWDJH EHVLGH DOO WKRVH ZKR VHW LW DW QDXJKW :KDW DQ ZLWK DQDORJLHV DQG WKDW LW LV GDQJHURXV QRW RQO\ ZLWK PHQ EXW
RYHUZKHOPLQJ REVWDFOH WR FLYLOL]DWLRQ DJJUHVVLRQ PXVW EH LI WKH DOVR ZLWK FRQFHSWV WR GUDJ WKHP RXW RI WKH UHJLRQ ZKHUH WKH\
GHIHQFHDJDLQVWLWFDQFDXVHDVPXFKPLVHU\DVDJJUHVVLRQLWVHOI RULJLQDWHG DQG KDYH PDWXUHG 7KH GLDJQRVLV RI FROOHFWLYH
QHXURVHVPRUHRYHUZLOOEHFRQIURQWHGE\DVSHFLDOGLIILFXOW\,Q FXOWXUDOGHYHORSPHQWDQGVD\IRULQVWDQFHWKDWWKHWHQGHQF\WR
WKH QHXURVLV RI DQ LQGLYLGXDO ZH FDQ XVH DV D VWDUWLQJSRLQW WKH LQVWLWXWH UHVWULFWLRQV XSRQ VH[XDO OLIH RU WR FDUU\ KXPDQLWDULDQ
FRQWUDVWSUHVHQWHGWRXVEHWZHHQWKHSDWLHQWDQGKLVHQYLURQPHQW LGHDOV LQWR HIIHFW DW WKH FRVW RI QDWXUDO VHOHFWLRQ DUH
ZKLFK ZH DVVXPH WR EH QRUPDO 1R VXFK EDFNJURXQG DV WKLV GHYHORSPHQWDO WUHQGV ZKLFK LW LV LPSRVVLEOH WR DYHUW RU GLYHUW
ZRXOG EH DYDLODEOH IRU DQ\ VRFLHW\ VLPLODUO\ DIIHFWHG LW ZRXOG DQG WR ZKLFK LW LV EHVW IRU XV WR VXEPLW DV WKRXJK WKH\ ZHUH
KDYHWREHVXSSOLHGLQVRPHRWKHUZD\$QGZLWKUHJDUGWRDQ\ QDWXUDOQHFHVVLWLHV,NQRZWRRWKHREMHFWLRQWKDWFDQEHUDLVHG
WKHUDSHXWLF DSSOLFDWLRQ RI RXU NQRZOHGJH ZKDW ZRXOG EH WKH DJDLQVWWKLVWKDWWHQGHQFLHVVXFKDVWKHVHZKLFKDUHEHOLHYHGWR
XVH RI WKH PRVW DFXWH DQDO\VLV RI VRFLDO QHXURVHV VLQFH QR RQH KDYHLQVXSHUDEOHSRZHUEHKLQGWKHPKDYHRIWHQLQWKHKLVWRU\RI
SRVVHVVHVSRZHUWRFRPSHOWKHFRPPXQLW\WRDGRSWWKHWKHUDS\" PDQEHHQWKURZQDVLGHDQGUHSODFHGE\RWKHUV0\FRXUDJHIDLOV
,Q VSLWH RI DOO WKHVH GLIILFXOWLHV ZH PD\ H[SHFW WKDW RQH GD\ PHWKHUHIRUHDWWKHWKRXJKWRIULVLQJXSDVDSURSKHWEHIRUHP\
VRPHRQH ZLOO YHQWXUH XSRQ WKLV UHVHDUFK LQWR WKH SDWKRORJ\ RI IHOORZPHQ DQG , ERZ WR WKHLU UHSURDFK WKDW , KDYH QR
FLYLOL]HGFRPPXQLWLHV FRQVRODWLRQ WR RIIHU WKHP IRU DW ERWWRP WKLV LV ZKDW WKH\ DOO
GHPDQGWKH IUHQ]LHG UHYROXWLRQDU\ DV SDVVLRQDWHO\ DV WKH PRVW
SLRXVEHOLHYHU
)RUYDULRXVUHDVRQVLWLVYHU\IDUIURPP\LQWHQWLRQWRH[SUHVV
DQ\ RSLQLRQ FRQFHUQLQJ WKH YDOXH RI KXPDQ FLYLOL]DWLRQ , KDYH
HQGHDYRXUHG WR JXDUG P\VHOI DJDLQVW WKH HQWKXVLDVWLF SDUWLDOLW\ 7KH IDWHIXO TXHVWLRQ RI WKH KXPDQ VSHFLHV VHHPV WR PH WR EH
ZKLFKEHOLHYHVRXUFLYLOL]DWLRQWREHWKHPRVWSUHFLRXVWKLQJWKDW ZKHWKHU DQG WR ZKDW H[WHQW WKH FXOWXUDO SURFHVV GHYHORSHG LQ LW
ZH SRVVHVV RU FRXOG DFTXLUH DQG WKLQNV LW PXVW LQHYLWDEO\ OHDG ZLOO VXFFHHG LQ PDVWHULQJ WKH GHUDQJHPHQWV RI FRPPXQDO OLIH
XVWRXQGUHDPHGRIKHLJKWVRISHUIHFWLRQ,FDQDWDQ\UDWHOLVWHQ FDXVHGE\WKHKXPDQLQVWLQFWRIDJJUHVVLRQDQGVHOIGHVWUXFWLRQ
ZLWKRXWWDNLQJXPEUDJHWRWKRVHFULWLFVZKRDYHUWKDWZKHQRQH ,Q WKLV FRQQHFWLRQ SHUKDSV WKH SKDVH WKURXJK ZKLFK ZH DUH DW
VXUYH\VWKHDLPVRIFLYLOL]DWLRQDQGWKHPHDQVLWHPSOR\VRQHLV WKLVPRPHQWSDVVLQJGHVHUYHVVSHFLDOLQWHUHVW0HQKDYHEURXJKW
ERXQG WR FRQFOXGH WKDW WKH ZKROH WKLQJ LV QRW ZRUWK WKH HIIRUW WKHLUSRZHUVRIVXEGXLQJWKHIRUFHVRIQDWXUHWRVXFKDSLWFKWKDW
DQGWKDWLQWKHHQGLWFDQRQO\SURGXFHDVWDWHRIWKLQJVZKLFKQR E\ XVLQJ WKHP WKH\ FRXOG QRZ YHU\ HDVLO\ H[WHUPLQDWH RQH
LQGLYLGXDOZLOOEHDEOHWREHDU0\LPSDUWLDOLW\LVDOOWKHHDVLHUWR DQRWKHUWRWKHODVWPDQ7KH\NQRZWKLVKHQFHDULVHVDJUHDWSDUW
PHVLQFH,NQRZYHU\OLWWOHDERXWWKHVHWKLQJVDQGDPVXUHRQO\ RI WKHLU FXUUHQW XQUHVW WKHLU GHMHFWLRQ WKHLU PRRG RI
RIRQHWKLQJWKDWWKHMXGJPHQWVRIYDOXHPDGHE\PDQNLQGDUH DSSUHKHQVLRQ$QGQRZLWPD\EHH[SHFWHGWKDWWKHRWKHURIWKH
LPPHGLDWHO\GHWHUPLQHGE\WKHLUGHVLUHVIRUKDSSLQHVVLQRWKHU WZRKHDYHQO\IRUFHVHWHUQDO(URVZLOOSXWIRUWKKLVVWUHQJWKVR
ZRUGV WKDW WKRVH MXGJPHQWV DUH DWWHPSWV WR SURS XS WKHLU DV WR PDLQWDLQ KLPVHOI DORQJVLGH RI KLV HTXDOO\ LPPRUWDO
LOOXVLRQV ZLWK DUJXPHQWV , FRXOG XQGHUVWDQG LW YHU\ ZHOO LI DGYHUVDU\
DQ\RQH ZHUH WR SRLQW WR WKH LQHYLWDEOH QDWXUH RI WKH SURFHVV RI
7DEOHRI&RQWHQWV
7DEOHRI&RQWHQWV
,,
,,,
,9
9
9,
9,,
9,,,

Vous aimerez peut-être aussi