221 downloads
2537 Views
2MB Size
Report
This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below!
Report copyright / DMCA form
),)7<.(<7+($75( ',5(&7256
)LIW\.H\7KHDWUH'LUHFWRUV FRYHUVWKHZRUNRISUDFWLWLRQHUVZKRKDYH VKDSHGDQGSXVKHGEDFNWKHERXQGDULHVRIWKHDWUHDQGSHUIRUPDQFH 7KHDXWKRUVSURYLGHFOHDUDQGLQVLJKWIXORYHUYLHZVRIWKHDSSURDFKHV DQGLPSDFWRIILIW\RIWKHPRVWLQIOXHQWLDOGLUHFWRUVRIWKHWZHQWLHWK DQGWZHQW\ILUVWFHQWXULHVIURPDURXQGWKHZRUOG 7KH\LQFOXGH • • • • • • • •
$QQH%RJDUW 3HWHU%URRN /HY'RGLQ 'HFODQ'RQQHOODQ -HU]\*URWRZVNL (OL]DEHWK/H&RPSWH -RDQ/LWWOHZRRG $ULDQH0QRXFKNLQH
(DFKHQWU\GLVFXVVHVDGLUHFWRU·VNH\SURGXFWLRQV LGHDVDQGUHKHDUVDO PHWKRGV HIIHFWLYHO\FRPELQLQJWKHRU\DQGSUDFWLFH 7KHUHVXOWLVDQ LGHDOJXLGHWRWKHZRUOGRIWKHDWUHIRUSUDFWLWLRQHUV WKHDWUHJRHUVDQG VWXGHQWV 6KRPLW 0LWWHU LV D IUHHODQFH ZULWHU DQG DXWKRU RI 6\VWHPV RI 5HKHDUVDO 5RXWOHGJH 0DULD 6KHYWVRYD LV 3URIHVVRU RI 'UDPD DQG 7KHDWUH $UWV DW *ROGVPLWKV&ROOHJH 8QLYHUVLW\RI/RQGRQ DQGDXWKRURI 'RGLQDQG WKH0DO\'UDPD7KHDWUH 3URFHVVWR3HUIRUPDQFH 5RXWOHGJH
),)7<.(< 7+($75( ',5(&7256
(GLWHGE\6KRPLW0LWWHUDQG 0DULD6KHYWVRYD
)LUVWSXEOLVKHG E\5RXWOHGJH 3DUN6TXDUH0LOWRQ3DUN$ELQJGRQ2[RQ2;51 6LPXOWDQHRXVO\SXEOLVKHGLQWKH86$DQG&DQDGD E\5RXWOHGJH 0DGLVRQ$YHQXH1HZ
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aster e-book ISBN
ISBN 0-203-63145-5 (Adobe eReader Format) ,6%1 ²²² KEN ,6%1 ²²²; SEN
&+52 12/2*,&$//,672) &217(176
$OSKDEHWLFDOOLVWRIFRQWHQWV 1RWHVRQFRQWULEXWRUV ,QWURGXFWLRQ
L[ [L [YLL
$QGUp$QWRLQH ² -HDQ&KRWKLD
9ODGLPLU1HPLURYLFK'DQFKHQNR ² $UNDG\2VWURYVN\
.RQVWDQWLQ6WDQLVODYVN\ ² 6KRPLW0LWWHU
(GZDUG*RUGRQ&UDLJ ² 6KRPLW0LWWHU
0D[5HLQKDUGW ² 6KRPLW0LWWHU
9VHYRORG0H\HUKROG ² 6KRPLW0LWWHU
-DFTXHV&RSHDX ² -RKQ5XGOLQ
$OH[DQGHU7DLURY ² 'DVKD.ULMDQVNDLD
(UZLQ3LVFDWRU ² 6KRPLW0LWWHU
Y
&+5212/2*,&$//,672)&217(176
$QWRQLQ$UWDXG ² 6KRPLW0LWWHU
%HUWROW%UHFKW ² 6KRPLW0LWWHU
/HH6WUDVEHUJ ² 6KRPLW0LWWHU
-HDQ9LODU ² 0DULD6KHYWVRYD
7DGHXV].DQWRU ² 0LFKDO.RELDOND
-RDQ/LWWOHZRRG ² 1DGLQH+ROGVZRUWK
<XU\/\XELPRY ² %LUJLW%HXPHUV
*LRUJLR6WUHKOHU ² 0DULD6KHYWVRYD
-XOLDQ%HFN ² 6KRPLW0LWWHU
3HWHU%URRN ² 6KRPLW0LWWHU
$XJXVWR%RDO ² 6KRPLW0LWWHU
-HU]\*URWRZVNL ² 6KRPLW0LWWHU
/XFD5RQFRQL ² 0DULD6KHYWVRYD
3HWHU6FKXPDQQ ² 6KRPLW0LWWHU
YL
&+5212/2*,&$//,672)&217(176
-RVHSK&KDLNLQ ² 6KRPLW0LWWHU
(XJHQLR%DUED ² 6KRPLW0LWWHU
<XNLR1LQDJDZD ² .D]XNR0DWVXRND
/HH%UHXHU ² *HUDOG5DENLQ
5LFKDUG)RUHPDQ ² *HUDOG5DENLQ
3HWHU6WHLQ ² 6KRPLW0LWWHU
-R$QQH$NDODLWLV ² 'HERUDK6DLYHW]
$ULDQH0QRXFKNLQH ² 0DULD6KHYWVRYD
7DGDVKL6X]XNL ² ,DQ&DUUXWKHUV
3LQD%DXVFK ² 0DULD6KHYWVRYD
5H[&UDPSKRUQ ² ,DQ0D[ZHOO
5REHUW:LOVRQ ² 6KRPLW0LWWHU
$QDWRO\9DVLO\HY ² %LUJLW%HXPHUV
3DWULFH&KpUHDX ² 0DULD6KHYWVRYD
YLL
&+5212/2*,&$//,672)&217(176
/HY'RGLQ ² 0DULD6KHYWVRYD
(OL]DEHWK/H&RPSWH ² $RLIH0RQNV
-LP6KDUPDQ ² ,DQ0D[ZHOO
$QQH%RJDUW ² 6FRWW7 &XPPLQJV
/OXtV3DVTXDO ² 0DULD0 'HOJDGR
(LPXQWDV1HNURVLXV ² %LUJLW%HXPHUV
'HFODQ'RQQHOODQ ² 0DULD6KHYWVRYD
1HLO$UPILHOG ² ,DQ0D[ZHOO
5REHUW/HSDJH ² 6KRPLW0LWWHU
6LPRQ0F%XUQH\ ² 'DYLG:LOOLDPV
3HWHU6HOODUV ² 0DULD6KHYWVRYD
'HERUDK:DUQHU ² $RLIH0RQNV
&DOL[WR%LHLWR ² 0DULD0 'HOJDGR
,QGH[
YLLL
$/3+$%(7,&$//,672) &217(176
-R$QQH$NDODLWLV $QGUp$QWRLQH 1HLO$UPILHOG $QWRQLQ$UWDXG (XJHQLR%DUED 3LQD%DXVFK -XOLDQ%HFN &DOL[WR%LHLWR $XJXVWR%RDO $QQH%RJDUW %HUWROW%UHFKW /HH%UHXHU 3HWHU%URRN -RVHSK&KDLNLQ 3DWULFH&KpUHDX -DFTXHV&RSHDX (GZDUG*RUGRQ&UDLJ 5H[&UDPSKRUQ /HY'RGLQ 'HFODQ'RQQHOODQ 5LFKDUG)RUHPDQ -HU]\*URWRZVNL 7DGHXV].DQWRU (OL]DEHWK/H&RPSWH 5REHUW/HSDJH -RDQ/LWWOHZRRG <XU\/\XELPRY 6LPRQ0F%XUQH\ 9VHYRORG0H\HUKROG $ULDQH0QRXFKNLQH
L[
$/3+$%(7,&$//,672)&217(176
(LPXQWDV1HNURVLXV 9ODGLPLU1HPLURYLFK'DQFKHQNR <XNLR1LQDJDZD /OXtV3DVTXDO (UZLQ3LVFDWRU 0D[5HLQKDUGW /XFD5RQFRQL 3HWHU6FKXPDQQ 3HWHU6HOODUV -LP6KDUPDQ .RQVWDQWLQ6WDQLVODYVN\ 3HWHU6WHLQ /HH6WUDVEHUJ *LRUJLR6WUHKOHU 7DGDVKL6X]XNL $OH[DQGHU7DLURY $QDWRO\9DVLO\HY -HDQ9LODU 'HERUDK:DUQHU 5REHUW:LOVRQ
[
&2175,%87256
%LUJLW %HXPHUV LV 6HQLRU /HFWXUHU LQ WKH 5XVVLDQ 'HSDUWPHQW DW %ULVWRO 8QLYHUVLW\ 6KH VSHFLDOLVHV LQ FRQWHPSRUDU\ 5XVVLDQ FXOWXUH HVSHFLDOO\FLQHPDDQGWKHDWUH +HUSXEOLFDWLRQVLQFOXGH<XU\/\XELPRY DWWKH7DJDQND7KHDWUH ² $PVWHUGDP +DUZRRG %XUQW E\WKH6XQ /RQGRQ ,% 7DXULV DQGKHUHGLWHG5XVVLDRQ5HHOV 7KH5XVVLDQ,GHDLQ3RVW6RYLHW&LQHPD ,% 7DXULV ,DQ &DUUXWKHUV KDV WDXJKW LQ WKH 7KHDWUH DQG 'UDPD 'HSDUWPHQW RI/D7UREH8QLYHUVLW\VLQFH +HLVDFRHGLWRU ZLWK0LQDPL 5\XWD DQG -RKQ *LOOLHV RI 3HUIRUPLQJ 6KDNHVSHDUH LQ -DSDQ &DPEULGJH 8QLYHUVLW\ 3UHVV DQG FRDXWKRU ZLWK 7DNDKDVKL
[L
&2175,%87256
0DULD 0 'HOJDGR LV 3URIHVVRU RI 'UDPD DQG 7KHDWUH $UWV DW 4XHHQ0DU\ 8QLYHUVLW\RI/RQGRQ 6KHLVDXWKRURI ¶2WKHU· 6SDQLVK 7KHDWUHV (UDVXUHDQG,QVFULSWLRQRQWKH7ZHQWLHWK&HQWXU\6SDQLVK6WDJH 0DQFKHVWHU8QLYHUVLW\3UHVV DQGFRHGLWRURI,Q&RQWDFWZLWK WKH *RGV" 'LUHFWRUV 7DON 7KHDWUH ZLWK 3DXO +HULWDJH 083 &RQGXFWLQJD/LIH 5HIOHFWLRQVRQWKH7KHDWUHRI0DULD,UHQH)RUQHV ZLWK &DULGDG 6YLFK /\PH 1+ 6PLWK .UDXV 7KH 3DULV -LJVDZ ,QWHUQDWLRQDOLVPDQGWKH&LW\·V6WDJHV ZLWK'DYLG%UDGE\ 083 7KHDWUH LQ &ULVLV" 3HUIRUPDQFH 0DQLIHVWRV IRU D 1HZ &HQWXU\ ZLWK &DULGDG 6YLFK 083 DQG %HUQDUG0DULH .ROWqV 3OD\V /RQGRQ 0HWKXHQ 6KH LV FRHGLWRU RI &RQWHPSRUDU\ 7KHDWUH 5HYLHZ DQG RI WKH 083 VHULHV ¶7KHDWUH 7KHRU\3UDFWLFH 3HUIRUPDQFH· DPHPEHURIWKHDGYLVRU\ERDUGRI7KHDWUH)RUXP DQGD FRQWULEXWLQJHGLWRUIRU:HVWHUQ(XURSHDQ6WDJHV 1DGLQH +ROGVZRUWK LV 6HQLRU /HFWXUHU LQ 7KHDWUH DQG 3HUIRUPDQFH 6WXGLHV DW WKH 8QLYHUVLW\ RI :DUZLFN 6KH KDV ZULWWHQ RQ 7KHDWUH :RUNVKRS *ODVJRZ 8QLW\ DQG FRQWHPSRUDU\ 6FRWWLVKWKHDWUH 6KHHGLWHG-RKQ0F*UDWK·V3OD\VIRU(QJODQG DQGKLV FROOHFWHG ZULWLQJV RQ WKHDWUH 1DNHG 7KRXJKWV 7KDW 5RDP $ERXW /RQGRQ 1LFN+HUQ 6KHLVFXUUHQWO\ZULWLQJDERRNRQ-RDQ /LWWOHZRRGIRUWKH5RXWOHGJH3HUIRUPDQFH3UDFWLWLRQHUVVHULHV 0LFKDO .RELDOND LV &KDLU DQG 3URIHVVRU RI 7KHDWUH DW WKH 'HSDUWPHQWRI 7KHDWUH$UWVDQG'DQFH 8QLYHUVLW\RI0LQQHVRWD +H LVWKHDXWKRURI $-RXUQH\7KURXJK2WKHU6SDFHV (VVD\VDQG0DQLIHVWRV ²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
&2175,%87256
.D]XNR 0DWVXRND LV D WKHDWUH FULWLF DQG WUDQVODWRU RI QXPHURXV 6KDNHVSHDUH SOD\V LQFOXGLQJ 5LFKDUG ,,, .LQJ /HDU DQG 3HULFOHV ,Q VKHZDVDZDUGHGWKH<XDVDDFRQYHUVDWLRQRQ6KDNHVSHDUH·VSOD\V ZLWK SV\FKRWKHUDSLVW 'U +D\DR .DZDL@ 7RN\R 6KLQFKRVKD DQG 6KDNHVSHDUH0RQR*DWDUL 7RN\R 6KLQFKRVKD ,DQ0D[ZHOO LV&KDLURIWKH'HSDUWPHQWRI3HUIRUPDQFH6WXGLHVDW WKH 8QLYHUVLW\ RI 6\GQH\ +H LV WKH DXWKRU RI ¶3KDW %HDWV 'RSH 5K\PHV· +LS +RS 'RZQ 8QGHU &RPLQ· 8SSHU 0LGGOHWRZQ &7 :HVOH\DQ 8QLYHUVLW\ 3UHVV DQ HWKQRJUDSK\ RI UDS FXOWXUH LQ 6\GQH\·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
[LLL
&2175,%87256
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¶&RSHDX· LQ 7ZHQWLHWK &HQWXU\ $FWRU 7UDLQLQJ HG $OLVRQ +RGJH 5RXWOHGJH +H KDV ZULWWHQ &RPPHGLDGHOO·DUWH DQ$FWRU·V+DQGERRN 5RXWOHGJH DQG&RPPHGLD GHOO·DUWH D5HVRXUFH%RRNIRU7URXSHV ZLWK2OO\&ULFN 5RXWOHGJH 'HERUDK 6DLYHW] LV D 1HZ
[LY
&2175,%87256
'DYLG :LOOLDPV LV 3URIHVVRU RI 7KHDWUH DW 'DUWLQJWRQ &ROOHJH RI $UWV (QJODQGDQGKDVZRUNHGDVDWHDFKHU ZULWHU WUDQVODWRU GLUHFWRU GUDPDWXUJDQGSHUIRUPHULQ$XVWUDOLDDQG(QJODQG +HKDVFRPSLOHG DQG HGLWHG 3HWHU %URRN $ 7KHDWULFDO &DVHERRN /RQGRQ 0HWKXHQ 3HWHU %URRN DQG WKH 0DKDEKDUDWD &ULWLFDO 3HUVSHFWLYHV /RQGRQ 5RXWOHGJH DQG &ROODERUDWLYH 7KHDWUH 7KH 7KpkWUH GX 6ROHLO 6RXUFHERRN 5RXWOHGJH +H LV FRQVXOWDQW HGLWRU RI 3HUIRUPDQFH 5HVHDUFK DQGDFRQWULEXWLQJHGLWRUWR:ULWLQJVRQ'DQFH
[Y
,1752'8&7,21
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¶ORRN VRPHWKLQJ XS· DQG WKH VWXGHQW DFWRU GLUHFWRU RU DQ\ RWKHU SUDFWLWLRQHU ZKR PD\ ZLVK WR UHDGLWWKURXJKIURPEHJLQQLQJWRHQG ,QRUGHUWRVDWLVI\WKHWKHDWUH JRHU VWXGHQWDQGSUDFWLWLRQHU HQWULHVVHHNWRUHODWHWKHYLVLRQRIHDFK RIWKHGLUHFWRUVGLVFXVVHGWRWKHPHDVXUHVWDNHQWRUHDOLVHKLVRUKHU [YLL
,1752'8&7,21
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·V ¶PHWKRG RI SK\VLFDO DFWLRQV· DQG 0H\HUKROG·V ¶ELR PHFKDQLFV· WR $ULDQH 0QRXFKNLQH DQG $QQH %RJDUW·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
[YLLL
),)7<.(<7+($75( ',5(&7256
$1'5e$172,1(
$1'5e$172,1( ² $QWRLQH·V YLVLRQ LQ FUHDWLQJ KLV ILUVW FRPSDQ\ WKH 7KpkWUH /LEUH ² ZDV RI D WKpkWUH G·HVVDL D ZRUNVKRS WKHDWUH ZKHUH SOD\V FRXOG EH WULHG RXW UHJDUGOHVV RI WKHLU FRPPHUFLDO SURVSHFWV +H ZRXOG SURYLGH D VWDJH IRU QHZ ZULWLQJ ZKRVH FKDOOHQJLQJ VXEMHFW PDWWHU RU IRUP KDG OHG WR LWV UHMHFWLRQ HOVHZKHUH 7KH SOD\ZULJKWV ZRXOGEHSDUWRIWKHFRPSDQ\DQGWKHFRPSDQ\ZRXOGGHYHORSLWV PHWKRGVLQWKHVHUYLFHRIWKHWH[W 7KHVWDJLQJLQWKHFRXUVHRIVHYHQ \HDUVRIVRPHSOD\V²YHUVHGUDPD V\PEROLVP EODFNIDUFH QRWR ULRXVQDWXUDOLVWSLHFHVDQGRQHDFWVOLFHVRIORZOLIH²VXJJHVWVWKDWWKH YLVLRQZDVWULXPSKDQWO\IXOILOOHG ,W ZDV HYLGHQW IURP WKH RXWVHW KRZHYHU WKDW DXGLHQFHV ZHUH FRPSHOOHG DW OHDVW DV PXFK E\ WKH PLVHHQVFqQH WKH DFWLQJ DQG WKH VHQVH RI HQVHPEOH DV E\ WKH SOD\V WKHPVHOYHV 7KLV ZDV HYHQ PRUH DSSDUHQWLQ$QWRLQH·VEHWWHUUHVRXUFHG SURIHVVLRQDOUHSHUWRU\FRPSD QLHV WKH7KpkWUH$QWRLQH ² DQGWKH7KpkWUH1DWLRQDOGH /·2GpRQ ² :KLOVWVWDXQFKO\XSKROGLQJWKHLQWHJULW\RIWKH GUDPDWLVW·VWH[W LQDQDJHRIFDVXDODGDSWDWLRQ $QWRLQHVDZKLVWDVNDV WKH DFFXUDWH LQWHUSUHWDWLRQ IRU WKH VWDJH RI WKH ZULWHU·V LPDJLQHG ZRUOG ,W ZDV SUHFLVHO\ EHFDXVH KH DWWHQGHG VR DVVLGXRXVO\ WR WKH QHHGV RI WKH SOD\ WKDW WKLV FKDPSLRQ RI WKH SOD\ZULJKWV· WKHDWUH EHFDPHRQHRIWKHLQLWLDWRUVRIWKHGLUHFWRUV· WKHDWUH $QWRLQH·V SUDFWLFH LQ PRXQWLQJ D SOD\ ZDV HVWDEOLVKHG HDUO\ DQG UHPDLQHG FRQVLVWHQW )LUVW WKH SOD\ZULJKW UHDG KLV ZRUN WR WKH IXOO FRPSDQ\ 7KHQ $QWRLQH FDVW WKH SOD\ DQG DORQH ZLWK WKH WH[W ZRUNHG RXW D SUHOLPLQDU\ PLVHHQVFqQH 7KLV LQYROYHG ORFDWLQJ WKH SOD\ LQ QXPHURXV VNHWFKHV DQG VWDJH SODQV PDUNLQJ H[LWV DQG HQWUDQFHV DQG E\ PHDQV RI FURVVHV DQG VPDOO DUURZV SORWWLQJ WKH DFWRUV· SRVLWLRQV DQG PRYHPHQWV ,Q GHYHORSLQJ WKH PLVHHQVFqQH $QWRLQHUDUHO\DOWHUHGGLDORJXH EXWKLVZRUNLQJWH[WVRIWHQVKRZWKH GUDPDWLVW·V VWDJH GLUHFWLRQV EROGO\ FURVVHG RXW DQG KLV RZQ VXEVWL WXWHG ,QWHUHVWLQJO\ QRWRQO\LVWKHUHQRUHFRUGRIDZULWHUREMHFWLQJ WRKLVDOWHUDWLRQV EXWPDQ\SOD\ZULJKWVLQFRUSRUDWHGKLVVWDJH GLUHF WLRQVLQWRVXEVHTXHQWSULQWLQJVRIWKHLUSOD\V 7KHDFWLQJVW\OHGHYHORSHGLQ$QWRLQH·VWKHDWUHVZDVHYLGHQWO\ DQ H[WHQVLRQRIKLVRZQLQWXLWLYHVHQVLELOLW\ ,WZDVGHOLEHUDWHO\ORZNH\ UHMHFWLQJ WKH ¶H[DJJHUDWHG DUWLFXODWLRQ· /H 7KpkWUH /LEUH 0D\ WDXJKWDWWKH&RQVHUYDWRLUH 7KHGLIIHUHQFHIURPWKH QRUP IUHTXHQWO\ GUHZ FRPPHQW ¶QRWKLQJ IRUFHG QRWKLQJ PHORGUD PDWLF QR HIIHFWV QR FULHV QR ELJ JHVWXUHV· /H *DXORLV 2FWREHU ¶QRWDNLQJWKHVWDJH QRSOD\LQJWRWKHJDOOHU\· *HRUJH0RRUH 3DOO 0DOO *D]HWWH )HEUXDU\ &ULWLFV SUDLVHG WKH ¶WUXWK·
$1'5e$172,1(
¶VLPSOLFLW\· DQG¶QDWXUDOQHVV· RIWKHDFWLQJEXWDOVRLWV¶LQWHOOLJHQFH· DQG ¶XQGHUVWDQGLQJ· ,WLVLQWKHFRQMXQFWLRQRIWKHVHHOHPHQWVWKDWERWK WKH SRZHU DQG WKH FRQWUDGLFWLRQV RI $QWRLQH·V SUDFWLFH OLH )RU $QWRLQH WKH SHUVXDVLYH DFWRU PXVW QRW RQO\ ORVH VHOIFRQVFLRXVQHVV DQGEHVHHQWREHFRPHWKHFKDUDFWHU EXWPXVWDOVREHWKRURXJKO\LQ FRQWURO RI WKH UROH ZLWK HYHU\ PRYHPHQW DQG LQWRQDWLRQ SUHSDUHG WKURXJKLQWHQVLYHUHKHDUVDO $QWRLQH·V UHKHDUVDOV WRRN SODFH ZKHQHYHU SRVVLEOH RQ WKH VWDJH ZLWKVHW FRVWXPHVDQGSURSVDVDYDLODEOHVRWKDWKLVDFWRUVOHDUQHGWR OLYH LQ DQG ZLWK WKHP 7KH ZRUOG RI WKH GUDPD ZDV SUHVXPHG WR FRQWLQXH EH\RQG WKH FRQILQHV RI WKH VWDJH DFWRUV DOZD\V NQHZ ZKHWKHU WKH\ ZHUH HQWHULQJ IURP WKH VWUHHW RU IURP DQRWKHU URRP (YHQ ZRUOGV DV UHPRWH DQG IDQFLIXO DV WKDW RI ePLOH %HUJHUDW·V PDJLFDO YHUVH FRPHG\ /D 1XLW %HUJDPDVTXH ZHUH VROLGO\ SUHVHQW ZLWKWKHJDUGHQVIXUQLVKHGZLWKUHDOSODQWVUDWKHUWKDQSDLQW LQJV RQ D EDFNFORWK 7KH DFWLRQ ZDV FRQFHLYHG QRW DV D VHULHV RI LQGLYLGXDOWXUQVEXWDVDQLQWHUDFWLYHSURFHVV 0XWXDOSK\VLFDODZDUH QHVV H\HFRQWDFW DQG WKH DUW RI OLVWHQLQJ ZKHQ QRW VSHDNLQJ ZHUH SDUDPRXQW 'RXEOLQJ HYHQ RI WKH VPDOOHVW UROHV ZDV QRW DOORZHG ZLWKLQ D SOD\ EHFDXVH RI WKH QHHG IRU WKH DFWRU WR¶OLYH· WKH UROH 6FHQHV ZHUH ZRUNHG RYHU DQG RYHU /LQHV JHVWXUHV DQG LQWHUDFWLRQV ZHUHH[SORUHGXQWLOWKH\EHFDPHVHFRQGQDWXUH $FWRUVZHUHVHQWRXW WRREVHUYHUHDOSHRSOH²DZRPDQLQWKHPDUNHW DSROLFHLQIRUPHU D SDWURQ RIDORFDOEDU²VRWKDWWKHEHDULQJ PRYHPHQWDQGPDQQHURI VSHHFK WKH\ DGRSWHG JHQXLQHO\ HYLQFHG WKH SK\VLFDO VRFLDO DQG SV\FKRORJLFDOEHLQJRIWKHFKDUDFWHU 2QFH$QWRLQHZDVVDWLVILHGZLWK WKH SUHOLPLQDULHV WKH PLVHHQVFqQH ZDV ZULWWHQ XS E\ WKH UpJLVVHXUV DQGKDGWREHIROORZHGVFUXSXORXVO\ 7KHSDUDGR[RIWKHDFWRUVZDV WKDWWKH\KDGWR¶OLYH· WKHLUSDUWVZLWKRXWPLVVLQJDVLQJOHSUHYLRXVO\ UHFRUGHGPRYH 7KH KDELWXDO SOD\LQJ SODFH LQ WKH )UHQFK WKHDWUH KDG EHHQ WKH IURQWRIWKHVWDJH ZLWKGLDORJXHGLUHFWHGIRUZDUGVWRWKHDXGLHQFH ,Q $QWRLQH·V WKHDWUH WKH UHODWLRQVKLS EHWZHHQ WKH VWDJH DQG WKH DXGL HQFH FKDQJHG 7KH PLGGOH RI WKH VWDJH EHFDPH WKH FHQWUH RI WKH DFWLRQ ZLWKDFWRUVUHTXLUHGWRSOD\WRHDFKRWKHUUDWKHUWKDQRXWWR WKHDXGLWRULXP 7KHDXGLWRULXPZDVGDUNHQHG IURP DQGWKH DFWRUVGLGQRWDFNQRZOHGJHWKHSUHVHQFHRIWKHDXGLHQFH 7KLVZDV RI FRXUVH QRWKLQJ OHVV WKDQ D VKLIW IURP SUHVHQWDWLRQDO WR LOOXVLRQLVW DFWLQJ $V WKH DXGLHQFH ZDV QR ORQJHU ORFDWHG DW WKH FRUH RI WKH DFWLRQ WKH\EHJDQWRH[SHULHQFHWKHLOOXVLRQRIEHLQJHDYHVGURSSHUV XQDFNQRZOHGJHG ZLWQHVVHV RI D VHOIFRQWDLQHG ZRUOG LQ ZKLFK WKH PRVW LQWLPDWH FRQFHUQV RI WKH FKDUDFWHUV ZHUH UHYHDOHG $V -RKQ
$1'5e$172,1(
-XOOLHQ SXW LW WKH EDUULHU EHWZHHQ WKH VWDJH DQG WKH DXGLHQFH ZDV QRZ¶DIRXUWKZDOO WUDQVSDUHQWIRUWKHSXEOLF RSDTXHIRUWKHDFWRU· 7KH DXGLHQFH RI FRXUVH RQO\ DSSHDUHG WR EH LJQRUHG 3UHFLVHO\ EHFDXVH KH DLPHG DW DQ HIIHFW RI FRPSOHWH UHDOLVP $QWRLQH KDG WR XVH DUWLILFH WR VXVWDLQ LW $Q LQDSSURSULDWH IL[WXUH D KDPP\ VLPXOD WLRQRIGUXQNHQQHVV DUDLQHIIHFWVWRSSLQJWRRDEUXSWO\ FRXOGGLVUXSW WKHLOOXVLRQ 6RVWDJHIXUQLVKLQJVKDGWREHSUDFWLFDODQGOLJKWLQJKDG WR EH GLUHFWHG DV LI QRW LQ IURP ZLQGRZV 7KH SHDVDQWV LQ 9HUJD·V &KHYDOHULHUXVWLTXH KDGWRVHHP6LFLOLDQ QRW)UHQFK DQGWKRVH LQ +DXSWPDQQ·V 7KH :HDYHUV KDG WR EH 6LOHVLDQ 7KH 3RZHUV RI 'DUNQHVV ZLWK LWV DQWLTXH FRVWXPHV LFRQV DQG VDPRYDUV ERUURZHGIURPWKH5XVVLDQpPLJUpFRPPXQLW\ EHFDPHDE\ZRUGIRU DXWKHQWLF VWDJLQJ %XW LQ HDFK FDVH LW ZDV WKH LPSUHVVLRQ RI DXWKHQ WLFLW\ WKDW ZDV DFKLHYHG RIWHQ E\ VOHLJKW RI KDQG 7KH ¶DXWKHQWLF· 5XVVLDQ LWHPV IRU H[DPSOH HPDQDWHG IURP D VRFLDO FODVV TXLWH GLIIHUHQWIURPWKDWRI7ROVWR\·VSOD\ 7KH¶UHDOLVWLF· OLJKWLQJZDVLQIDFW VXEWO\ERRVWHGWRJLYHWKHDFWLRQJUHDWHUFODULW\ /DQWHUQVZHUHSODFHG VRDVWRFDWFKWRUPHQWHGH[SUHVVLRQVLQDVKDIWRIOLJKW 0RVWVLJQLIL FDQWO\ WKHVHWZDVDUUDQJHGWRORRNDVQDWXUDODVSRVVLEOH²ZLWKRXW HYHUREVFXULQJWKHDFWLRQ 7KH PRUH ZLOG DQG UDQGRP D VFHQH VHHPHG WKH PRUH FDUHIXOO\ RUFKHVWUDWHGLWKDGWREH $QWRLQH·VPXFKDGPLUHGFURZGVHTXHQFHV ZHUH FUHDWHG WKURXJK D PL[WXUH RI VWUDWHJLF EORFNLQJ H[SODQDWLRQ DQG RSHUDQW FRQGLWLRQLQJ KH XVHG D IRUHPDQ·V ZKLVWOH WR WUDLQ KLV DFWRUV WR UHVSRQG SURPSWO\ +H IROORZHG WKH 0HLQLQJHU SUDFWLFH RI GLYLGLQJWKHRUPRUHH[WUDVLQWRVPDOOJURXSV HDFKRIZKLFKKDG DOHDGHUDQGZDVDOORWWHGDVSHFLILFDFWLYLW\ 6RXQGVRIPDUFKLQJIRRW VWHSV GUXPV DQG VKRWV ZHUH JHQHUDWHG EDFNVWDJH WR FUHDWH WKH LPSUHVVLRQ RI GLVWDQW WXUPRLO 7KH YRLFHV RI VPDOO JURXSV RI H[WUDV DGYDQFLQJIURPGHHSLQWKHWKHDWUHZHUHSRVLWLRQHGFORVHUDQGFORVHU WRWKHVWDJHWRVLPXODWHDQDSSURDFKLQJULRW $QWRLQH·VILUVWDWWHPSWDW FUHDWLQJ D UHYROXWLRQDU\ FURZG LQ /D 3DWULH HQ GDQJHU ZKLOVW ZRQGHUIXOO\ FRQYLQFLQJ WR WKH DXGLHQFH KDG WKH OHDGLQJ DFWRU 0pYLVWR VWUDLQLQJ VR UHDOLVWLFDOO\ DJDLQVW WKH FURZG WKDW KH ORVW KLV YRLFH ,Q WKH IRUXP VFHQH LQ -XOLXV &DHVDU JURXSV RI DFWRUV FRXJKHG PXUPXUHG DQG KXVKHG RWKHUV WKURXJK $QWRQ\·V¶)ULHQGV 5RPDQV FRXQWU\PHQ· VSHHFK JLYLQJDIOHHWLQJVHQVHRIYDULDQWRSLQ LRQVDQGDWWLWXGHVDPRQJWKHPDVVHV $QWRLQH ZDV WKH FUHDWLYH FHQWUH RI KLV WKHDWUH DQG HYHU\WKLQJ GHULYHG IURP DQG UHWXUQHG WR WKH PDQ XQLYHUVDOO\ FDOOHG¶OH SDWURQ· $OWKRXJK KH ZRUNHG FORVHO\ ZLWK DFWRUV GHVLJQHUV DQG ZULWHUV KLV SUDFWLFH ZDV IXQGDPHQWDOO\ GHVSRWLF 1R DFWRU FRQWUDGLFWHG KLV
$1'5e$172,1(
LQWHUYHQWLRQV +HKHOGKLVSRVLWLRQE\WKHIRUFHRIKLVRZQFRPPLW PHQW ,Q KLV WKHDWUHV WKH FRRUGLQDWLQJ IXQFWLRQ RI WKH ROG VWDJH PDQDJHU JDYH ZD\ WR WKH LQWHUSUHWLQJ IXQFWLRQV RI WKH PRGHUQ GLUHFWRU $FWLQJ LQ YLUWXDOO\ HYHU\ SURGXFWLRQ XQWLO KLV PRYH WR WKH 2Gp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pJLVVHXUV DOODQ[LRXVWROHDUQ )LQDOO\ LWZDV$QWRLQH·VLGHDRIDSOD\ZULJKWV· WKHDWUHWKDWZRXOG ZRUN LQGHSHQGHQWO\ RI FRPPHUFLDO FRQVLGHUDWLRQV WKDW KDG JUHDWHVW LPSDFW RQ VXEVHTXHQW WKHDWUH 7KLV ZDV WKH WKLQNLQJ WKDW KDG DQLPDWHG$QWRLQH·VILUVWSURMHFW WKH7KpkWUH/LEUH ZKLFKJHQHUDWHG VRPHQHZVSDSHUDUWLFOHVGXULQJLWVILUVWWKUHH\HDUV 0DQ\RI WKH WDFWLFV $QWRLQH GHYHORSHG WR VXVWDLQ VXFK D WKHDWUH ² D VHDVRQDO VXEVFULSWLRQ OLVW WR HQDEOH ILQDQFLDO VHFXULW\ FORVHG KRXVH SHUIRU PDQFHV WR HOXGH WKH FHQVRU VLQJOH SHUIRUPDQFH VKRZLQJV RU YHU\ VKRUW UXQV D WHDP RI DPDWHXU DFWRUV LQWHUPL[HG ZLWK PRRQOLJKWLQJ SURIHVVLRQDOV ² LQIRUPHG WKH SUDFWLFH RI D QXPEHU RI DOWHUQDWLYH WKHDWUH FRPSDQLHV VXFK DV WKH )UHLH %KQH RI %HUOLQ /XJQp 3RH·V 7KpkWUHG·°XYUH 6WULQGEHUJ·V,QWLPDWH7KHDWUHDQGWKH0RVFRZ$UW 7KHDWUH 1RWHV
$QWRLQH $QGUp ¶0RXQHW6XOO\ HW OH SDUDGR[H VXU OH FRPpGLHQ· /·,QIRUPDWLRQ -XO\ /H7KpkWUH9LYDQW 3DULV
)XUWKHUUHDGLQJ &KRWKLD - 'LUHFWRUV LQ 3HUVSHFWLYH $QGUp $QWRLQH &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV +HQGHUVRQ -$ 7KH)LUVW$YDQW*DUGH /RQGRQ /DZUHQFH9HUU\ 6WRNHV - 5HVLVWLEOH7KHDWUHV /RQGRQ (OHN -($1&+27+,$
9/$',0,51(0,529,&+'$1&+(1.2
9/$',0,51(0,529,&+'$1&+(1.2 ²
7KH0RVFRZ$UW7KHDWUHLVODUJHO\NQRZQLQWKH:HVWDVWKHWKHDWUH RI .RQVWDQWLQ 6WDQLVODYVN\ 9ODGLPLU 1HPLURYLFK'DQFKHQNR LWV FRIRXQGHU LV XVXDOO\ VHHQ DV SHUIRUPLQJ D VHFRQGDU\ UROH
9/$',0,51(0,529,&+'$1&+(1.2
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qQH WKDW ZDV¶WUXH WR OLIH· ZKLOH 1HPLURYLFK FRQFHQWUDWHG RQ FRQYH\LQJ WR WKH DXGLHQFH WKH ¶PXVLF· RI WKH SOD\ ZKLFK KH FODLPHG 6WDQLVODYVN\ GLG QRW IHHO 7KH RXWVWDQGLQJIHDWXUHRIUHKHDUVDOVZDV1HPLURYLFK·VDELOLW\WRLGHQWLI\ WKHKDOIWRQHVZLWKZKLFKWRFUHDWHD¶QDWXUDO· DWPRVSKHUH 7KLV ZDV ODWHU WR EHFRPH WKH KDOOPDUN RI 0RVFRZ $UW 7KHDWUH SURGXFWLRQV 1HPLURYLFKEURXJKWWRKLVZRUNDQDFXWHVHQVLWLYLW\WRWKHDXWKRU·V VW\OH WKH FRORXU RI D SOD\ DQG WKH WRQH WKDW LW UHTXLUHG IURP WKH DFWRUV 6WDQLVODYVN\·VXQLTXHWDOHQW RQWKHRWKHUKDQG ZDVWREHDEOH WRVHHWKHOLIHWKDWOD\EHKLQGWKHSOD\ $SOD\IRU6WDQLVODYVN\ZDVQRW VRPXFKDOLWHUDU\WH[WDVDUHFRUGRIDUHDOVLWXDWLRQWKDWFRXOGEHUH OLYHG RQ VWDJH :KHQ KH WDONHG DERXW 2WKHOOR KH WDONHG QRW DERXW 6KDNHVSHDUH·V SOD\ EXW DERXW D VWRU\ RI WKH 0RRU LQ 9HQLFH WKDW 6KDNHVSHDUHKDGVLPSO\UHFRUGHG ,Q FRQWUDVW WR 6WDQLVODYVN\ ZKR GLG QRW SRVVHVV D WUDJLF VHQVH RI WKH ZRUOG 1HPLURYLFK KDG D IHHO IRU WUDJHG\ DQG ZDV FDSDEOH RI VWDJLQJ LW VXFFHVVIXOO\ ,Q WZR \HDUV EHIRUH WKH ILUVW 5XVVLDQ 5HYROXWLRQ KHGLUHFWHG-XOLXV&DHVDU ¶DVDWUDJHG\RIKLVWRU\LWVHOI DV WKHWUDJHG\RIWKHLQHYLWDEOHPRYHPHQWRIKLVWRU\ZKLFKEULQJV WKH HQGWRWKHUHSXEOLFDQIUHHGRPVDQGEULQJVWULXPSKWRWKHHPSLUH· 7KH SURGXFWLRQ ZDV QRWDEOH IRU D YLEUDQW FRORXUIXO DQG DOO FRQVXPLQJ PRE WKDW KDG SOHQW\ RI HQHUJ\ EXW YHU\ OLWWOH UHDVRQ 5RPHZDVQRWDQLPSHULDOFDSLWDO DVLWZDVSRUWUD\HGLQQLQHWHHQWK FHQWXU\SDLQWLQJV EXWDVHHWKLQJ VRXWKHUQFLW\ DFLW\ULSHIRUVODYHU\ 7KHSURGXFWLRQWKDWEHVWH[SUHVVHG1HPLURYLFK·VIHHOIRUWUDJHG\ DVZHOODVKLVVHQVHRIOLWHUDU\VW\OHZDVKLVDGDSWDWLRQRI'RVWRHYVN\·V QRYHO 7KH%URWKHUV.DUDPD]RY 7KLVPRVWVLJQLILFDQWRI0RVFRZ$UW 7KHDWUH SURGXFWLRQV WKH OHJDF\ RI ZKLFK FDQ EH IHOW LQ PDQ\ RI WRGD\·VVWDJHDGDSWDWLRQVRIQRYHOV DSSHDUHGDOPRVWE\DFFLGHQW 7KH WKHDWUHZDVLQWKHPLGGOHRILWVZRUNRQ +DPOHW GLUHFWHGMRLQWO\E\ *RUGRQ &UDLJ DQG 6WDQLVODYVN\ ZKHQ WKH ODWWHU IHOO JUDYHO\ LOO DQG WKHSODQWRRSHQWKHVHDVRQRI ZLWK+DPOHW KDGWREHDEDQ GRQHG $IWHUDQHPHUJHQF\PHHWLQJRIWKHERDUGRIGLUHFWRUVRIWKH
9/$',0,51(0,529,&+'$1&+(1.2
0RVFRZ$UW7KHDWUH 1HPLURYLFKGHFLGHGWRRSHQWKHVHDVRQZLWKD SHUIRUPDQFHRI7KH%URWKHUV.DUDPD]RY VSUHDGRYHUWZRHYHQLQJV ,Q DOHWWHUWR6WDQLVODYVN\ 1HPLURYLFKGHVFULEHGWKHHYHQWXDOVXFFHVVRI WKH SURGXFWLRQ DV ¶QRW D WULXPSK RU D YLFWRU\ EXW VRPH FRORVVDO EORRGOHVV UHYROXWLRQ· ZKLFK LQWURGXFHG WKH 0RVFRZ $UW 7KHDWUH DQGLQGHHGWKHDWUHLQJHQHUDO WRDQHZ QRQGUDPDWLFIRUPRIOLWHUD WXUH 1RYHOVKDGREYLRXVO\EHHQGUDPDWLVHGDQGDGDSWHGIRUWKHVWDJH EHIRUH EXWQRERG\KDGHYHUDWWHPSWHGWRVWDJHDQRYHOLQLWVHQWLUHW\ ZLWKRXW ILUVW FRQYHUWLQJ LW LQWR D SOD\ ,Q WKH FDVH RI 7KH %URWKHUV .DUDPD]RY QRIL[HGGUDPDWLFWH[WHYHQH[LVWHG 1HPLURYLFKZRUNHG VWUDLJKW IURP WKH QRYHO 7KH VLJQLILFDQFH RI WKH 0RVFRZ $UW 7KHDWUH·V DFKLHYHPHQW ZDV LQ WKH IDFW WKDW E\ EUHDNLQJ DOO NQRZQ WKHDWUHFRQYHQWLRQV LWPDQDJHGWRSUHVHUYHWKHQRQGUDPDWLFVWUXF WXUH RI WKH QRYHO RQ VWDJH 1HPLURYLFK GLG QRW DGDSW WKH QRYHO IRU WKHVWDJH KHDGDSWHGWKHVWDJHIRUWKHQRYHO 1HPLURYLFK GLYLGHG 'RVWRHYVN\·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·V HQFRXQWHU ZLWK WKH GHYLO 9DVLOL\ .DFKDORY SOD\HG ERWK ,YDQ DQG WKH GHYLO )RU PLQXWHV .DFKDORY VSRNHIRUERWK,YDQDQGWKHGHYLO JLYLQJDQLPSUHVVLRQRIWKHGHYLO ZLWKMXVWDVOLJKWFKDQJHRILQWRQDWLRQRQDGDUNDQGDOPRVWHPSW\ VWDJH 7KXV LQ 7KH %URWKHUV .DUDPD]RY 1HPLURYLFK PDQDJHG WR ILQG WKDW XQLTXH FRPELQDWLRQ RI 0RVFRZ $UW 7KHDWUH SULQFLSOHV ² RI SV\FKRORJLFDOUHDOLVPDQGHOHYDWHGWUDJHG\²ZKLFK6WDQLVODYVN\DQG &UDLJKDGWULHGWRFUHDWHLQ+DPOHW 7KH %URWKHUV .DUDPD]RY ZDV WKH ILUVW WUDJHG\ WR EH VWDJHG E\ WKH 0RVFRZ$UW7KHDWUH ,WZDVIROORZHG LQ E\DGDUNDQGEXUQLQJ SURGXFWLRQ RI 'RVWRHYVN\·V 7KH 'HYLOV ,I 1HPLURYLFK·V ZRUN RQ 'RVWRHYVN\RIIHUHGWKHWKHDWUH·VDFWRUVDQRSSRUWXQLW\WRUHYHDOWKHLU WUDJLF WHPSHUDPHQW WR WKH IXOO VRPHWKLQJ WKDW &KHNKRY·V SOD\V GLG QRWDOORZWKHPWRGR LWDOVRDOORZHG1HPLURYLFKWRGHPRQVWUDWHKLV WDVWHIRUHSLF PRQXPHQWDODQGHPRWLRQDOO\FKDUJHGIRUPVRIWKHDWUH
9/$',0,51(0,529,&+'$1&+(1.2
7KLVWDVWHIRUVFDOHDQGELJ EURDGOLQHVSDUWO\HQVXUHGWKHVXFFHVVRI KLV SURGXFWLRQV LQ WKH 6RYLHW SHULRG ZKLFK LQFOXGHG *RUN\·V 7KH (QHPLHV DQG$QQD.DUHQLQD 7KH(QHPLHV ZLWKLWVFOHDU FXWGLYLVLRQLQWRHQHPLHVDQGIULHQGV KDGDGLDJRQDOOLQHGLYLGLQJWKH VWDJHLQWRWZRZRUOGV IRUWKHILUVWWLPHLQLWVKLVWRU\ WKH0RVFRZ$UW 7KHDWUH IXOO\ VKDUHG WKH SRVLWLRQ RI WKH ¶ZLQQHUV· DQG UHIXVHG WKH ¶ORVHUV· DQ\V\PSDWK\ 7KHSULQFLSOHRIELQDU\RSSRVLWLRQVDOVRGHILQHG WKH VW\OH RI $QQD .DUHQLQD ZKHUH 1HPLURYLFK GUHZ D VLPLODUO\ VWUDLJKWOLQH²WKLVWLPHEHWZHHQ$QQD IXOORIOLIHIRUFHVDQGHQJXOIHG E\XQWDPHGSDVVLRQ DQGWKHK\SRFULWLFDODQGHPRWLRQDOO\GHDGZRUOG WKDW VXUURXQGV KHU 7KH SURGXFWLRQ ZDV ZDUPO\ HPEUDFHG E\ WKH 6RYLHW JRYHUQPHQW DQG WRRN LWV SODFH DW WKH IRUHIURQW RI DUWLVWLF OLIH ZLWKLQ ZKDW ZDV WKHQ WKH 6RYLHW (PSLUH 1HPLURYLFK·V SURGXFWLRQV KDGEHFRPHH[DPSOHVRIWKHJUDQG¶FODVVLFLVW· VW\OHRIWKH V
.2167$17,167$1,6/$96.<
1RWHV
1HPLURYLFK'DQFKHQNR 9, ,]EUDQQ\H SLV·PD 9RO , HG 9 9LOHQNLQ 0RVFRZ ,VNXVVWYR ² ,ELG %DUWRVKHYLFK $ ¶-XOLXV &DHVDU· LQ 6PHO\DQN\ $0 6RORY\RYD ,1 DQG(JRVKLQD 29 HGV 0RVFRZ$UW7KHDWUH 2QH+XQGUHG
)XUWKHUUHDGLQJ /HDFK 5 DQG %RURYVN\ 9 HGV $ +LVWRU\ RI 5XVVLDQ 7KHDWUH &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV 1HPLURYLFK'DQFKHQNR 9, 0\ /LIH LQ WKH 5XVVLDQ 7KHDWUH WUDQV -RKQ&RXUQRV 1HZ
.2167$17,167$1,6/$96.< ² 'LUHFWRU DFWRU DQG GUDPD WHDFKHU .RQVWDQWLQ 6WDQLVODYVN\ ZDV D FRIRXQGHU RI WKH 0RVFRZ $UW 7KHDWUH ZKR EHOLHYHG WKDW WKH KLJKHVW FRQGLWLRQ WR ZKLFK DQ DFWRU FRXOG DVSLUH ZDV WKDW LQ ZKLFK WKHUH ZDV QR GLVWLQFWLRQ EHWZHHQ WKH VHOI DQG WKH UROH ,Q 1LNRODL *RUFKDNRY·V ORJ RI D UHKHDUVDO RI *ULER\HGRY·V FRPHG\ 0XFK:RHIURP:LVGRP 6WDQLVODYVN\H[KRUWVKLVDFWRUVWR¶ILOO WKHWH[WZLWK*ULER\HGRY·VIHHOLQJV
.2167$17,167$1,6/$96.<
)RU6WDQLVODYVN\ DFWRUVPXVW¶EHFRPH·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¶EHFRPLQJ· WKH FKDU DFWHU LV VLPSOH HQRXJK ,I WKH HVVHQFH RI WKH DFWRU·V SUREOHP LV WKDW WKHFKDUDFWHULVLQLWLDOO\DQDOLHQHQWLW\ZLWKZKRPLWLVKDUGWRLGHQ WLI\ LW VHHPV ORJLFDO WR VXJJHVW WKDW WKH DFWRU PXVW EHJLQ E\ UHVHDUFKLQJWKHFKDUDFWHU·VZRUOGZHOOHQRXJKWREHDEOHWRHQWHULWDW ZLOO $V6WDQLVODYVN\SXWVLW ¶>,@QWKHODQJXDJHRIWKHDFWRUWRNQRZ LV V\QRQ\PRXVZLWKWRIHHO· 6WDQLVODYVN\ 2QH RI 6WDQLVODYVN\·V PHWKRGV RI JHWWLQJ KLV DFWRUV WR HQWHU WKH ZRUOGRIWKHGUDPDLVWRYLVXDOLVHWKHGUDPDWLFVSDFHLQHYHU\GHWDLO >7@ZR IORRUV RI WKH DFWRU·V GUHVVLQJ URRPV EDFNVWDJH ZHUH XVHG « WR UHSUHVHQW 2UJRQ·V KRPH« :H ZHUH WROG WR HVWDEOLVKWKHORFDWLRQRIWKHSULQFLSDOURRPVRIWKHKRXVH« ¶,IWKHPLVWUHVVRIWKHKRXVHLVVLFNZRXOGVKHEHFRPIRUW DEOHLQWKHURRP\RXKDYHFKRVHQIRUKHU",WPLJKWEHYHU\ QRLV\«· :HDFWHGRXWVXFKHYHQWV 7RSRUNRY ² 2QFHWKHSK\VLFDOHQYLURQPHQWLQZKLFKWKHGUDPDWDNHVSODFHLV SURSHUO\XQGHUVWRRG WKHDFWRUVDUHLQYLWHGWRSURMHFWWKHPVHOYHVLQWR WKHDFWLRQDQGWRDVNKRZWKH\WKHPVHOYHVZRXOGUHDFWLIIDFHGZLWK VLPLODUVLWXDWLRQV 6WDQLVODYVN\·VDFWRU¶PXVWEHDEOHWRSXWKLPVHOILQWR WKH JLYHQ FLUFXPVWDQFHV $Q DFWRU PXVW DVN KLPVHOI ¶¶+RZ ZRXOG , EHKDYHLILWKDSSHQHGWRPHLQUHDOOLIH"·· · *RUFKDNRY ² ¶,I · LV D ZRUG WKDW UHFXUV LQFHVVDQWO\ LQ 6WDQLVODYVN\·V ZULWLQJV %\ XVLQJWKHZRUG¶LI · WKHDFWRULVDEOHWRDFNQRZOHGJHWKDWWKHVWDJHLV PHUHO\DVWDJHDQGQRWUHDOLW\ EXWKDYLQJGRQHVRWKHDFWRUFDQJR RQ WR DFFHVV WKDW GHHSHU OHYHO RI LGHQWLILFDWLRQ ZKLFK RFFXUV ZKHQ DFWRUVUHIHUWKHFLUFXPVWDQFHVRIWKHGUDPDWRWKHLURZQOLYHV ¶,I · LVD WULFN WKH DFWRUV SOD\ RQ WKHPVHOYHV IRU RQO\ E\ DGPLWWLQJ WKDW WKH GUDPDLVDILFWLRQFDQWKHDFWRUVFRQYHUWWKDWILFWLRQLQWRUHDOLW\
.2167$17,167$1,6/$96.<
$FKDUDFWHULVDSURGXFWQRWPHUHO\RIFLUFXPVWDQFHVEXWRILQWHQ WLRQV 7RIHHODVWKHFKDUDFWHUIHHOVDFWRUVPXVWQRWRQO\UHVHDUFKWKH FKDUDFWHU·V EDFNJURXQG EXW DOVR DSSO\ WKHPVHOYHV WR XQGHUVWDQGLQJ ZKDW WKH FKDUDFWHU LQWHQGV WR DFKLHYH HVSHFLDOO\ DV SOD\V RIWHQ GHDO ZLWK WKH H[WHQW WR ZKLFK WKHVH DPELWLRQV DUH UHDOLVHG RU WKZDUWHG 7KHVHFRQGPDMRUDVSHFWRI6WDQLVODYVN\·VDSSURDFKWRWKHSUREOHPRI FKDUDFWHULVDWLRQLQYROYHVGLYLGLQJWKHSOD\LQWRXQLWVZKLFKDUHWKHQ ODEHOOHGZLWKDYHUEWKDWGHVFULEHVZKDWSUHFLVHO\WKHFKDUDFWHUKRSHV WRDFKLHYHLQWKDWXQLWRIDFWLRQ ¶+RZZLOO\RXJHWLQWRWKHKRXVHRIWKH*RYHUQRU",QRUGHU WRJHWLQZKDWZLOO\RXQHHG"· ¶$QLQYLWDWLRQ«· ¶7KDW LV LW« 7KH ZKROH VFHQH LV IRU WKH VDNH RI WKLV (YHU\WKLQJOHDGVWRWKLV WU\WRDFKLHYHRQO\WKLV 7KLVLV\RXU WDVN«· 7RSRUNRY ² 7KH DQDO\VLV RI WKH UROH LQ WHUPV RI XQLWV DQG REMHFWLYHV KDV WKH DGYDQWDJHRIGUDZLQJDFWRUDQGFKDUDFWHUWRJHWKHULQDVLQJOHWKUXVW RIDFWLRQ %\DVVLJQLQJDPRWLYHWRWKHFKDUDFWHU WKHYHUEXVHG DOVR VXSSOLHV WKH DFWRU ZLWK D UHDVRQ IRU EHKDYLQJ DV WKH FKDUDFWHU EHKDYHV 7KH FKDUDFWHU·V PRWLYDWLRQ DQG WKH DFWRU·V MXVWLILFDWLRQ DUH EUDFNHWHGWRJHWKHULQDVLQJOHZRUG 7KHREMHFWLYHVDVVLJQHGWRHDFKVFHQHDUHWKHQDPDOJDPDWHGLQWRD VHTXHQFH WKDW VSDQV WKH HQWLUH OHQJWK RI WKH SOD\ WR FUHDWH ZKDW LV FDOOHGD¶WKURXJKOLQH· RIDFWLRQ 7KHWKURXJKOLQHLVWKHPDSRIWKH UROH DVFKHPHWKDWKHOSVWKHDFWRUORFDWHHDFKPRPHQWRIWKHSOD\LQ WHUPVRIWKHFKDUDFWHU·V¶VXSHUREMHFWLYH· RUXOWLPDWHJRDO ¶$QG ZKDW FRXOG WKH HVVHQFH RI WKLV UROH EH .RQVWDQWLQ 6HUJH\YLFK"· ¶&RXOGLWEHWRORRNDIWHU3LFNZLFN",IVR WU\WRVXERUGL QDWH DOO \RXU EHKDYLRXU WR WKLV RQH DLP WR ORRN DIWHU KLP &KRRVH ZKDW LV QHFHVVDU\ WR FDUU\ RXW WKLV DLP DQG WKURZ DZD\WKHUHVW« 7KHQWKHFKDUDFWHUZLOODFTXLUHSXUSRVHIXO DFWLYLW\LQDFFRUGDQFHZLWKWKHLQQHUOLQH· ,ELG ,W LV LPSRUWDQW WKDW WKH VXSHUREMHFWLYH WRR LV YLHZHG LQ WHUPV RIDYHUEUDWKHUWKDQDQDGMHFWLYH $QDGMHFWLYHWHOOVDQDFWRU ZKDWD
.2167$17,167$1,6/$96.<
FKDUDFWHULVOLNH EXWDYHUEWHOOVDQDFWRUZKDWWRGR )LQDOO\ LWLVIURP WKHVHLPSXOVHVWRDFWLRQWKDWWKHSOD\JHWVLWVGULYH :LWK WKH FKDUDFWHU·V SDVW PLQXWHO\ UHVHDUFKHG DQG WKH IXWXUH PDSSHGSUHFLVHO\ 6WDQLVODYVN\IHOWKLVDFWRUVVKRXOGEHZHOORQWKHLU ZD\WRDFKLHYLQJKLVYLVLRQRIFRPSOHWHLGHQWLILFDWLRQEHWZHHQ DFWRU DQGFKDUDFWHU +RZHYHU ZKHQKHSXWZKDWKHKDGZULWWHQLQWRSUDF WLFH KLV DFWRUV IDLOHG PLVHUDEO\ 7KH ILUVW WZR SURGXFWLRQV DIWHU WKH SXEOLFDWLRQ RI KLV VRFDOOHG V\VWHP +DPVXQ·V 'UDPD RI /LIH DQG$QGUH\HY·V/LIHRI0DQ ZHUHFKDUDFWHULVHGE\DFULSSOLQJ VHOIFRQVFLRXVQHVV )DPRXVO\ 1HPLURYLFK'DQFKHQNR KDGWRLQVLVW WKDW 6WDQLVODYVN\ KLPVHOI ZLWKGUDZ IURP SOD\LQJ WKH SDUW RI 5RVWDQRY WKH UROH LQ ZKLFK KH KDG KDG KLV JUHDWHVW VXFFHVV DV D \RXQJDFWRU :KHQKHORRNHGEDFNRQWKLVSHULRG6WDQLVODYVN\UHDOLVHGWKDWWKH PRUH FRQVFLRXVO\ DQ DFWRU ZRUNV RXW ZKDW D FKDUDFWHU LV DERXW WKH PRUHVHOIFRQVFLRXVKHEHFRPHV²DQGWKHOHVVDEOHKHLVWRSHUIRUP ,Q UHVSRQVH WR WKLV SUREOHP 6WDQLVODYVN\ LQVWLWXWHG WKH VRFDOOHG ¶0HWKRGRI3K\VLFDO$FWLRQV· 7KLVZDVDV\VWHPRIZRUNZKLFKZDV GLDPHWULFDOO\ RSSRVHG WR WKH¶V\VWHP· LQ WKDW LW WRRN DV LWV VWDUWLQJ SRLQW WKH DVVXPSWLRQ WKDW D UROH LV PRVW HIIHFWLYHO\ LQKDELWHG ZKHQ DSSURDFKHG QRW WKURXJK WKH PLQG WKURXJK UHVHDUFK DQG DQDO\VLV EXWWKURXJKWKHERG\ WKURXJKJDLW IRULQVWDQFH RUPDNHXS 8QGHU WKLVUHJLPH DQDFWRUXVHVWKHHDUO\VWDJHVRIUHKHDUVDOWRGHFLGHQRW ZKDWWKHFKDUDFWHU·VFKLOGKRRGKDGEHHQOLNH EXWZKDWWKHFKDUDFWHU ORRNVOLNH RUKRZKHZDONV RUZKDWVRUWRIKDLUKHKDV 7KLV KDG EHHQ 6WDQLVODYVN\·V RZQ ZD\ RI ZRUNLQJ LI KH KDG WR SOD\ DQ ROG PDQ KH ZRXOG VLPSO\ EHJLQ E\ SK\VLFDOO\ LPLWDWLQJ DQ HOGHUO\SHUVRQKHNQHZ :KDW6WDQLVODYVN\KDGGLVFRYHUHGDVDSUDF WLVLQJ DFWRU RYHU WKH \HDUV ZDV WKDW D PDVWHU\ RYHU WKH SK\VLFDO DWWULEXWHV RI WKH FKDUDFWHU DOPRVW DOZD\V OHG E\ VRPH P\VWHULRXV SURFHVVWRDVHQVHRIWKHFKDUDFWHU·VLQQHUFRQGLWLRQ 9DVLO\7RSRUNRY VSHDNV RI WKLV DV¶.RQVWDQWLQ 6HUJH\HYLFK·V VHFUHW WKDW WKURXJK WKH FRUUHFW H[HFXWLRQ RI SK\VLFDO DFWLRQV « RQH SHQHWUDWHV LQWR WKH GHHSHVW PRVWFRPSOLFDWHGIHHOLQJVDQGHPRWLRQDOH[SHULHQFHV· LELG 7KHDGYDQWDJHRIWKLVPHWKRGRIZRUNLQJLVWKDWLWDYRLGVVHOI FRQVFLRXVQHVV $FWLRQV JHQHUDWH HPRWLRQDO FRQGLWLRQV EHIRUH DFWRUV KDYHWKHRSSRUWXQLW\WRWDNHDFFRXQWRIWKLVSURFHVV $FWRUV¶EHFRPH· WKHLUFKDUDFWHUVLQVSLWHRIWKHPVHOYHV 6WDQLVODYVN\KDGXVHGWKHWHFKQLTXHRIWHQHQRXJKWRNQRZWKDWLW ZRUNHG ZKHQKHDVVXPHGWKHH[WHUQDOPDQQHULVPVRIWKHFKDUDFWHUV KHZDVSOD\LQJRIIVWDJH WKHIHHOLQJVDQGVHQVDWLRQVRIWKHFKDUDFWHU LPPHGLDWHO\DURVHLQKLP 7KHTXHVWLRQLV ZK\GLGKHQRWEDVHKLV
.2167$17,167$1,6/$96.<
V\VWHP RQ WKLV PHWKRG RI ZRUNLQJ" 3HUKDSV DV DQDO\VLV LV REYLRXVO\ LQLPLFDO WR WKH SURSHU ZRUNLQJ RI WKLV PHWKRG KH KDG QHYHU KDG UHDVRQWRZRUNRXWZK\ ¶LWLVSRVVLEOHWRDUULYHDWWKHLQQHUFKDUDFWHU LVWLFV RI D SDUW E\ ZD\ RI WKH RXWHU FKDUDFWHULVWLFV· 6WDQLVODYVN\ TXRWHGLQ0DJDUVKDFN 3HUKDSV DVWKHV\VWHPZDVLQWHQGHG WR EH D ZRUN RI H[SODQDWLRQ WKDW ZKLFK ZDV LQH[SOLFDEOH KDG QR SODFHLQLW +DYLQJGHFLGHGWRZULWHKLVV\VWHP 6WDQLVODYVN\SUREDEO\ VXFFXPEHG WR WKH GHPDQG ODQJXDJH PDNHV RQ WKH ZULWHU·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·VEDFNJURXQGDQGPRWL YDWLRQ EHIRUH JRLQJ LQWR UHKHDUVDO :KHQ WKLV IDLOHG KH HPEDUNHG XSRQWKHWKLUGSKDVH +HH[SOLFLWO\UHMHFWHGPXFKRIWKHV\VWHP DQG UHYHUWHG WR ZRUNLQJ WKURXJK WKH ERG\ ,Q D UHKHDUVDO RI 7DUWXIIH KLV ODVW SURGXFWLRQ 6WDQLVODYVN\ UHSHDWHGO\ HPSKDVLVHG WKDW ¶>Z@KHQ WKH DFWRU VWDUWV WR UHDVRQ WKH « ZLOO LV ZHDNHQHG 'RQ·W GLVFXVV MXVWGRLW· 7RSRUNRY :K\ VLW DW D WDEOH IRU PRQWKV DQG WU\ DQG IRUFH RXW \RXU GRUPDQWIHHOLQJV"«
(':$5'*25'21&5$,*
6WDQLVODYVN\ . $Q$FWRU3UHSDUHV WUDQV (OL]DEHWK5H\QROGV+DSJRRG /RQGRQ 3HQJXLQ%RRNV ³³ %XLOGLQJ D &KDUDFWHU WUDQV (OL]DEHWK 5H\QROGV +DSJRRG /RQGRQ (\UH0HWKXHQ ³³ &UHDWLQJ D 5ROH WUDQV (OL]DEHWK 5H\QROGV +DSJRRG /RQGRQ 0HWKXHQ 7RSRUNRY 92 6WDQLVODYVN\LQ5HKHDUVDO 7KH)LQDO
(':$5'*25'21&5$,* ² $V WKH VRQ RI WKH DFWUHVV (OOHQ 7HUU\ DQG KDYLQJ WRXUHG DV DQ DFWRU XQGHU WKH WXWHODJH RI WKH OHJHQGDU\ +HQU\ ,UYLQJ VLQFH WKH DJH RI VL[ (GZDUG*RUGRQ&UDLJ·VFUHGHQWLDOVDVDPDQRIWKHWKHDWUHZHUH LPSHFFDEOH
(':$5'*25'21&5$,*
UHDOLW\ DQGPDWWHU >\RX@OLIWWKHPXSRXWRI¶OLIH· LQWRWKHRQO\ OLIH XSZKHUHWKHVSLULWFDQIO\²IUHHGIURPWKLVDERPLQDEOH EDGGUHDPRIPDWWHU /HWWHUWR&UDLJ -XQH TXRWHGLQ,QQHV )RU&UDLJWKHMRERIDGLUHFWRUZDVWRZRUNZLWKPRYHPHQWDQG OLJKW WR GLVWLO WKDW VSLULWXDO HVVHQFH WR ZKLFK KH EHOLHYHG DOO DUWLVWV DVSLUHG &UDLJ·V ZDV D WKHDWUH LQ ZKLFK VXEOLPLQDO IRUPV HPERGLHG XQWDUQLVKHG HPRWLRQDO VWDWHV ,W ZDV DQ DEVWUDFW ZRUOG LQ ZKLFK WKH LQWHUSOD\ RI VWLOOQHVV DQG DFWLRQ VKDGRZV DQG OLJKW WRRN SUHFHGHQFH RYHUWULIOLQJPDWWHUVRISORWDQGFKDUDFWHU ,WZDVDYLVLRQDVORIW\DVLW ZDV FKLPHULFDO DQG &UDLJ FOXQJ WR LW ZLWK D WHQDFLW\ WKDW ZDV UDGL DQWO\LPSHUYLRXVWRUHDVRQ &RPIRUWDEOHDVZHDUHWRGD\ZLWKWKHQRWLRQRIWKHGLUHFWRUDVDQ DXWRQRPRXVDJHQW WKHLGHDZDVUDGLFDOLQ&UDLJ·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·VZRUN ZLWKWKHDFWRUVVRRQGHJHQHUDWHGLQWRDUXQQLQJILJKW« %UDXQ·VREVHUYDWLRQVRQUHKHDUVDOVRI7KH9LNLQJVDW+HOJHODQG VKRZ WKDW WKH LQGLJQLW\ RI WKH DFWRUV ZDV D IXQFWLRQ QRW PHUHO\ RI WKHLU WKHRUHWLFDO GLVDJUHHPHQW ZLWK &UDLJ EXW RI WKH LQFRQVLGHUDWH LPSUDFWLFDOLW\RI&UDLJ·VVWDJLQJ &UDLJFODVKHGZLWKKLVDFWRUVQRWPHUHO\EHFDXVHWKH\REMHFWHGWR WKHLU ORVV RI VWDWXV DV¶VWDUV· EXW DOVR EHFDXVH WKHLU WUDLQLQJ PDGH LW YLUWXDOO\ LPSRVVLEOH IRU WKHP WR JHQHUDWH WKH DEVWUDFW TXDOLW\ &UDLJ UHTXLUHG :KHUHDVDFWRUVUHYHOOHGLQWKHH[WHQWWRZKLFKWKHLUSHUIRU PDQFHV ZHUH SV\FKRORJLFDOO\ SHUFHSWLYH RU HPRWLRQDOO\ ULYHWLQJ
(':$5'*25'21&5$,*
&UDLJZDQWHGIHHOLQJVDQGSV\FKRORJ\WRJLYHZD\WRKLVRYHUULGLQJ SUHRFFXSDWLRQZLWKIRUP $OWKRXJKKHRIWHQWR\HGZLWKWKHLGHDRI WUDLQLQJDFWRUVWRDFKLHYHWKLVFRQGLWLRQRIGHSHUVRQDOLVHGPDWHULDOLW\ WKHFRQFOXVLRQWRZKLFKKHZDVLQHYLWDEO\GUDZQZDVWKDWWKHDFWRU KDG WR EH GLVSHQVHG ZLWK DOWRJHWKHU DQG UHSODFHG ZLWK ZKDW &UDLJ FDOOHG WKH ¶8EHUPDULRQHWWH· 7KH XQIRUWXQDWH FRQVHTXHQFH RI &UDLJ·V XVH RI WKH ZRUG¶PDULRQHWWH· ZDV WKDW KLV FRQIOLFW ZLWK KLV DFWRUV ZDV SRUWUD\HG PRUH DV D PDWWHU RI YDQLW\ WKDQ RI DUW ,Q IDFW &UDLJ VRXJKW QRW WR UHGXFH EXW WR HOHYDWH KLV DFWRUV WR SXSSHWV ² SXSSHWV KDG IRU KLP D VXEOLPH TXDOLW\ WKDW KXPDQ EHLQJV ODFNHG ¶'UDPD ZKLFK LV QRW WULYLDO WDNHV XV EH\RQG UHDOLW\ DQG \HW DVNV D KXPDQ IDFH WKH UHDOHVW RI WKLQJV WR H[SUHVV DOO WKDW ,W LV XQIDLU· :DOWRQ &UDLJ ZLVKHG WR ULG WKH WKHDWUH RI DFWRUV QRW EHFDXVH RI WKHLU LQVXERUGLQDWLRQ EXW EHFDXVH WKH\ ODFNHG WKH VDFUHG DQGLPSHUVRQDOTXDOLW\KHUHTXLUHG /LNHDFWRUV ZRUGV WRR IHOOIRXORI&UDLJIRUEHLQJWRRREYLRXVO\ WDLQWHG ZLWK PRUWDOLW\ ¶:RUGV DUH D EDG PHDQV RI FRPPXQLFDWLQJ LGHDV· KH ZURWH LQ KLV 'D\ERRN ¶² HVSHFLDOO\ WUDQVFHQGHQW LGHDV ² LGHDVZKLFKIO\· TXRWHGLQ,QQHV )RU&UDLJ ZRUGVZHUH E\WKHLUQDWXUH ZLQGRZVLQWRWKHYHU\ZRUOGKHZDVWU\LQJVRKDUG WR HFOLSVH 7KURXJK ODQJXDJH IHHOLQJV DQG SV\FKRORJ\ ZHUH DEOH WR LQILOWUDWH D GUDPD DQG LQKLELW LWV FDSDFLW\ WR H[SUHVV WKH LQHIIDEOH 2QO\LQKLVGHVLJQVZDV&UDLJDEOHWRUHDOLVHWKHIRUPDOSXULW\RIKLV LPDJLQDWLRQ &UDLJ·VGHVLJQV RIWHQFUHDWHGLQGHSHQGHQWO\RIWKHQHHGV RIVSHFLILFSURGXFWLRQV KDYHWKHWLPHOHVVTXDOLW\RIDOOJUHDWYLVXDODUW ¶7KH 6WHSV· IRU H[DPSOH LV D VHULHV RI GUDZLQJV WKDW H[DPLQH WKH HIIHFWRIOLJKWRQERGLHVPRYLQJWKURXJKVSDFH 7KH\DUHGUDZQZLWK DSDLQWHU·VSDVVLRQ QRWDGHVLJQHU·VHIILFLHQF\ 8QOLNH D SXUHO\ YLVXDO DUWLVW KRZHYHU &UDLJ GLG QHHG PRYHPHQW WRIXOILOKLVYLVLRQ (YHQDWKLVPRVWSRHWLFKHZDVQHYHUDQDEVWUDFW H[SUHVVLRQLVWSDLQWHU KHZDVWRRHQDPRXUHGRIWKHG\QDPLFWKUXVWRI GUDPD /RRN WKHUH WR WKH ULJKW ² VRPHWKLQJ VHHPV WR XQIROG ² VRPHWKLQJ WR IROG ² ZKDW KDV XQIROGHG ² " VORZO\ TXLFN HQLQJ ZLWKRXWKDVWH IROGDIWHUIROGORRVHQVLWVHOIDQGFODVSV DQRWKHU WLOO WKDW ZKLFK ZDV YRLG KDV EHFRPH SDOSDEOH « XQWLOWKHUHVWDQGEHIRUHXVYDVWFROXPQVRIVKDSHV« &UDLJ $V ORQJ DV &UDLJ QHHGHG D YLVLRQ WR ¶XQIROG· KH QHHGHG D VWDJH SHRSOHGZLWKDFWRUV ,WZDVQRWXQWLOYHU\ODWHLQKLVFDUHHUWKDW&UDLJ
(':$5'*25'21&5$,*
UHWUHDWHG LQWR D FRFRRQ RI SXUH WKHRU\ 8QWLO WKDW WLPH KH ZRUNHG QRWDVWKHYLVLRQDU\GUDXJKWVPDQZHKDYHFRPHVRPXFKWRDGPLUH EXWDVDPDQILHQGLVKO\SUHRFFXSLHGZLWKRYHUKDXOLQJWKHSULQFLSOHV RI VWDJLQJ 7KH PDJQLILFHQWO\ LPSUDFWLFDO &UDLJ LV WRGD\ VR PXFK DGPLUHGWKDWKLVYDVWO\LQQRYDWLYHFRQWULEXWLRQVWRWKHIXQFWLRQDO DUWRI VWDJHGHVLJQDUHVRPHWLPHVRYHUORRNHG 3HUKDSVWKHPRVWLQWHUHVWLQJ RI WKHVH LV WKH LGHD RI XVLQJ PRYLQJ VFUHHQV ZKLFK ZRXOG DV &UDLJ REVHUYHG HQDEOH WKH GLUHFWRU WR ¶SDVV IURP RQH VFHQH WR DQRWKHU ZLWKRXWDEUHDNRIDQ\NLQG· ,QQHV $VOXFNZRXOGKDYH LW WKH ILUVW WLPH &UDLJ XVHG PRYLQJ VFUHHQV ² LQ KLV 0RVFRZ $UW7KHDWUHSURGXFWLRQRI+DPOHW ²WKH\FROODSVHGLQDKHDSDQGKDG WR EH IL[HG WR WKH IORRU ,W ZDV DV LI WKH IDWHV ZHUH FRQVSLULQJ WR LPSULVRQ&UDLJZLWKLQKLVXQMXVWO\DFTXLUHGUHSXWDWLRQIRUYLVLRQDW WKHFRVWRISUDFWLFDOLW\ &UDLJ·V UHSXWDWLRQ IRU XQUHDVRQDEOH LGHDOLVP LV OHVV D IXQFWLRQ RI DQ\DSDWK\KHPD\KDYHKDGZLWKUHJDUGWRSUDFWLFDOPDWWHUVWKDQRI WKH VKHHU VFDOH RI KLV YLVLRQ 7KH GHVFULSWLRQV ZH KDYH RI OLJKWLQJ HIIHFWV XVHG E\ &UDLJ IRU LQVWDQFH EHDU ZLWQHVV WR WKH FDUH KH ODYLVKHG RQ JHWWLQJ IXQFWLRQDO GHWDLOV ULJKW ,Q WKH $FLV DQG *DODWHD IRULQVWDQFH WKHWHQWRIJUH\VWUHDPHUVVORZO\GLVDSSHDUHG DQGLQWKHYDVW H[SDQVHRIEOXHVN\D¶:DWHU*RG· JUDGXDOO\PDWHULDOL]HGLQ WKH IRUP RI D JUHDW IRXQWDLQ ZKHUH WKH VSDUNOLQJ EHDGV RI ZDWHU URVH DQG IHOO 7KLV EHDXWLIXO HIIHFW « ZDV LQ IDFW DFKLHYHGE\SLHUFLQJKROHVLQWKHEDFNFORWKDQGEDFNOLJKWLQJ WKHP WKHQ E\UHYROYLQJODUJHSHUIRUDWHGGLVFVLQIURQWRIWKH ODPSV WKH VSRWV RI OLJKW FDPH DQG ZHQW SURGXFLQJ WKH FDVFDGHHIIHFW &UDLJ )RU 7KH 9LNLQJV &UDLJ ZDV DEOH WR JHQHUDWH DQ DWPRVSKHUH RI VLQLVWHU IRUHERGLQJ E\ UHPRYLQJ WKH IRRWOLJKWV DQG KDYLQJ WKH VWDJH WRSOLWZLWKVKDIWVRIDQJXODUOLJKW 2QFHDJDLQZHKDYHWKHMX[WDSRVL WLRQ RI &UDLJ·V DWWUDFWLRQ WR XQUHDOLVDEOH LQILQLWLHV ZLWK VRXQG DQG LQYHQWLYH SUDJPDWLVP &UDLJ GLG QRW PHUHO\ JHQHUDWH IDQFLIXO VNHWFKHV KH DSSOLHG KLPVHOI DVVLGXRXVO\ WR WKH WDVN RI UHDOLVLQJ WKH HIIHFWVKHZDQWHG 7RRYHUKDXODQLQDQLPDWHPHGLXPVXFKDVVWDJHGHVLJQLVGLIILFXOW EXW QRW LPSRVVLEOH IDU PRUH GLIILFXOW LV WKH WDVN RI RUFKHVWUDWLQJ DSSURSULDWHO\ GLVFLSOLQHG PRYHPHQW IURP DFWRUV &UDLJ·V VROXWLRQ WR WKHSUREOHPRIKDYLQJKLVYLVXDOVXQIROGWRXQQDWXUDODQGVRPHWLPHV
(':$5'*25'21&5$,*
LQRUGLQDWHO\ VORZ UK\WKPV ZDV WR XVH PXVLF WR SURYLGH WKH SUHFLVH WHPSRKHUHTXLUHGIURPKLVDFWRUV ZH KHDU RXWVLGH D UXVWOLQJ DQG WKH VRXQG RI IHHW ZKLFK FUHDWH PLQJOHG IHDU DQG H[SHFWDWLRQ %DFFKDQDOV HQWHU DQG WKH PDVNHUV IOHH OLNH VWDUWOHG IDZQV $ K\PQ WR %DFFKXV IROORZV ZLWK OLYHO\ PRYHPHQW RI KDQGV DQG ERGLHV DQG DQ LQWHUZHDYLQJGDQFH :KLOHWKHH\HVDUHIHG WKHPHDVXUHRID EULJKW FRXQWU\ GDQFH HQFKDQWV WKH HDU WKH PDVTXH FORVLQJ ZLWKWKHXVXDOSURFHVVLRQ ,ELG &UDLJ·V XVH RI PXVLF LV DQRWKHU H[DPSOH RI KLV KDYLQJ FRQWULYHG WR HQVXUH WKH UHDOLVDWLRQ RI DQ LGHDO WKURXJK FRQFUHWH DQG SUDFWLFDO PHDQV &UDLJ ZDV D PDQ KXQFKHG RYHU D ZRRGFXW QRW D WKHRULVW VWDULQJYDFDQWO\DWDVKHHWRISDSHU ,QVSLWHRIDOOWKHDWWHQWLRQKLVSURGXFWLRQVUHFHLYHG &UDLJYLUWX DOO\UHWLUHGIURPDFWLYHWKHDWUHZRUNDWWKHDJHRIIRUW\ *LYHQWKDWKH GLHGDWWKHDJHRIQLQHW\IRXU KHVSHQWDQH[WUDRUGLQDU\SURSRUWLRQ RIKLVOLIHRXWVLGHWKHWKHDWUH ¶,ZDQWWLPHWRVWXG\WKH7KHDWUH· KH ZURWHLQKLV'D\ERRN ¶,GRQRWZDQWWRZDVWHWLPHSURGXFLQJSOD\V· LELG 7KHTXHVWLRQLV ZK\GLGWKLVPDQ ZKRFOHDUO\HQMR\HG SUDFWLFDO ZRUN DEDQGRQ WKH WKHDWUH DQG WDNH XS WHDFKLQJ DQG ZULWLQJ"3HUKDSV&UDLJ·VSURGXFWLRQVIHOOVKRUWRIKLVRZQYHU\KLJK VWDQGDUGIRUWKHP²QRWEHFDXVHWKH\IDLOHGWRJLYHPDWHULDOH[SUHV VLRQWRKLVYLVLRQEXWEHFDXVHWKDWYLVLRQZDVQRWVXIILFLHQWO\WDXWLQ WKH GUDPDWLF VHQVH RI WKH WHUP &UDLJ·V VSHFWDFXODU YLVXDOV GHWUDFWHG IURPWKHDFWLRQRIWKHSOD\VKHSUHVHQWHG +LVDFWRUVZHUHGZDUIHGE\ KLVVHWVDQGWKHLUFRQFHUQVZHUHUHQGHUHGWULYLDOE\WKHVFDOHRIWKHLU HQYLURQPHQW 7KHDEVWUDFWLQWHUSOD\RIPRRGVDQGSLFWXUHVODFNHGWKH KXVWOH DQG EXVWOH RI KXPDQ ZDUPWK ZKLFK D GUDPD QHHGV WR EH HQJDJLQJ 'LVVDWLVILHG ZLWK KLV ZRUN EXW XQDEOH WR ILQG D UHDVRQ IRU KLV SULYDWHVHQVHRIIDLOXUH &UDLJWRRNWREODPLQJHYHU\RQHDURXQGKLP $FFRXQWVRI&UDLJ·VEHKDYLRXULQUHKHDUVDOVDUHOLWWHUHGZLWKVWRULHVRI LPSDWLHQWRXWEXUVWVDQGGUDPDWLFVHSDUDWLRQV &UDLJDUULYHGLQWLPHIRUWKHILUVWUXQWKURXJK EXWKDOIZD\ FDXVHG VXFK D GLVWXUEDQFH ZLWK KLV VKRXWV RI GLVVDWLVIDFWLRQ WKDWKHZDVWROGWRNHHSDZD\XQWLOWKHILQDOGUHVVUHKHDUVDOV :KHQ KH ZDV DOORZHG WR UHWXUQ D ZHHN ODWHU KH DJDLQ EURXJKWWKHUHKHDUVDOWRDKDOWZLWKYLROHQWFRPSODLQWV«
0$;5(,1+$5'7
2Q DQRWKHU RFFDVLRQ &UDLJ UHSULPDQGHG D VWDJH PDQDJHU IRU DGMXVWLQJWKHKHLJKWRIDSURVFHQLXPVRVHYHUHO\WKDW'XVH ZKR KDG SURPLVHG OLIHORQJ FRRSHUDWLRQ ZLWK &UDLJ HQGHG KHU DVVRFLDWLRQ ZLWKKLP FRPPHQWLQJWKDWLWZDVLPSRVVLEOHWRZRUNZLWKVRPHRQH ZKRVH UHDFWLRQV ZHUH VR GLVSURSRUWLRQDWHO\ YHKHPHQW ,W ZDV ILYH \HDUVEHIRUH&UDLJZRUNHGRQWKHVWDJHDJDLQ &UDLJ·VVWDWHPHQWVRQWKHFRQGLWLRQRIFRQWHPSRUDU\WKHDWUHSUDF WLFH ZHUH RIWHQ LPSHULRXV DQG VZHHSLQJ LQ WKHLU FRQGHPQDWLRQ &UDLJ·V FRQWHQWLRQ WKDW ¶7R VDYH WKH WKHDWUH WKH WKHDWUH PXVW EH GHVWUR\HG WKHDFWRUVDQGDFWUHVVHVPXVWDOOGLHRIWKHSODJXH·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
%UDXQ ( 7KH'LUHFWRUDQGWKH6WDJH /RQGRQ 0HWKXHQ ,ELG ²
)XUWKHUUHDGLQJ &UDLJ (* ,QGH[ WR WKH 6WRU\ RI 0\ 'D\V &DPEULGJH &DPEULGJH 8QLYHUVLW\3UHVV ³³ *RUGRQ &UDLJ 7KH 6WRU\ RI KLV /LIH 1HZ
0$;5(,1+$5'7 ² 0D[5HLQKDUGW·VDSSHWLWHIRUWKHWKHDWUHZDVJDUJDQWXDQ $VDWKHDWUH GLUHFWRU DFWRU DQG SURGXFHU ZRUNLQJ LQLWLDOO\ LQ $XVWULD DQG *HUPDQ\DQGWKHQLQWKH8QLWHG6WDWHV KHPDQDJHGWKLUW\GLIIHUHQW FRPSDQLHVDQGGLUHFWHGPRUHWKDQSURGXFWLRQV $VHDFKRIWKHVH
0$;5(,1+$5'7
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¶WKHUHLVQRRQHIRUPRIWKHDWUH ZKLFK LV WKH RQO\ WUXH DUWLVWLF IRUP· 6W\DQ ,Q 6KHOGRQ&KHQH\UHPDUNHGWKDW5HLQKDUGW¶ZRUNHGWRRIDVWWREHWKH GHHS WKLQNHU DQG RULJLQDO FUHDWRU WKDW &UDLJ LV· LELG 7KH *HUPDQ FULWLF ,KHULQJ GHULGHG KLP IRU OHDYLQJ ¶QR VW\OH RQO\ SURGXFWLRQV « QR WKHDWUH RQO\ SHUIRUPDQFHV·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·V H[SHULHQFH PLUURUHG WKH H[SHULHQFH RI (XURSHDVDZKROHDWWKHWXUQRIWKHFHQWXU\ ZKHUHQRVLQJOHVW\OH UXOHGDQGULYDOSDUDGLJPVYLHGZLWKHDFKRWKHUIRUWKHWKHDWUHJRHU·V HQGRUVHPHQW %HUOLQ KDG IHOW WKH LQIOXHQFH ERWK RI 7KpkWUH /LEUH QDWXUDOLVP DQG WKH V\PEROLVW GUDPD RI 0DHWHUOLQFN DQG +RIPDQQVWDKO ,I RQH FRQVLGHUV LQ DGGLWLRQ WR WKLV WKH H[FLWHPHQW JHQHUDWHG E\ WKH H[SUHVVLRQLVW OHDQLQJV RI ZULWHUV OLNH %FKQHU DQG :HGHNLQG ZHKDYHDPHOWLQJSRWRIVW\OHVPRUHYDULRXVSHUKDSVWKDQ DWDQ\RWKHUWLPHLQWKHKLVWRU\RIWKHWKHDWUH 5HLQKDUGW·VDFKLHYH PHQW ZDV WR WDNH RQ ERDUG WKH LPSDFW RI HDFK RI WKHVH VFKRROV RI
0$;5(,1+$5'7
WKHDWUH DQG WR ZRUN ZLWKRXW SUHMXGLFH WR UHDOLVH WKHLU LQFRPSDWLEOH YLVLRQV 7KURXJK DOO WKLV 5HLQKDUGW KLPVHOI UHPDLQHG LPSHQHWUDEO\ WUDQVFHQGHQW DVWLOOFHQWUHEH\RQGWKHJDJJOHRIZDUULQJIDVKLRQVDQG IDFWLRQV 2QHRIWKHPRVWLQWHUHVWLQJWKLQJVDERXW5HLQKDUGW·VKDQGOLQJRI WKHYDULRXVFRQYHQWLRQVZLWKZKLFKKHUDSLGO\PDGHKLPVHOIFRQYHU VDQW LV WKDW KH RIWHQ FRPELQHG WKHP WR FUHDWH SHUIRUPDQFHV RI XQSUHFHGHQWHGLQWHQVLW\ 7KHLPSRUWDQWWKLQJDERXWKLV *KRVWV IRULQVWDQFH LVQRWWKDWLWKHOSHGFRQVROLGDWHKLVEUHDNIURPWKH2WWR %UDKPVFKRRORIQDWXUDOLVP EXWWKDWKHUHWDLQHG HOHPHQWVRIQDWXUDO LVWLF DFWLQJ RQ D VWDJH KHDY\ ZLWK VKDGRZV DQG D WKUHDWHQLQJ FODXVWURSKRELD 5HLQKDUGW·V FRPPHQWV RQ WKH VHWV ZKLFK KDG EHHQ GHVLJQHG E\ (GYDUG 0XQFK DUH UHSOHWH ZLWK UHIHUHQFHV WR WKH PDQQHU LQ ZKLFK FRORXU OLQH DQG UK\WKP GHWHUPLQH WKH HPRWLRQDO LPSDFW RI WKH GUDPD ¶WKH GDUN FRORXULQJ UHIOHFWV WKH ZKROH DWPR VSKHUHRIWKHGUDPD $QGWKHQORRNDWWKHZDOOV WKH\·UHWKHFRORXURI GLVHDVHGJXPV :HPXVWWU\WRJHWWKDWWRQH ,WZLOOSXWWKHDFWRUVLQ WKHULJKWPRRG· LELG 7KH YRFDEXODU\ KHUH ¶GDUN· ¶DWPRVSKHUH· ¶GLVHDVHG· ¶WRQH· ¶PRRG· LVDIDUFU\IURPWKHFRQFHUQZLWKDXWKHQWLFLW\WKDWKDGEHHQ WKH KDOOPDUN RI %UDKP·V QDWXUDOLVP 0XQFK·V GHVLJQV FRQFHGHG D FHUWDLQ DUWLILFLDOLW\ RI PHDQV FRORXUV ZHUH FKRVHQ QRW EHFDXVH WKH\ ZHUH SODXVLEOH EXW EHFDXVH WKH\ UHIOHFWHG GHHS DVSHFWV RI WHPSHUD PHQW DQG FLUFXPVWDQFH WKDW D PRUH H[WHUQDOO\ OLIHOLNH SRUWUD\DO ZRXOGQHYHUKDYHEHHQDEOHSURSHUO\WRFDSWXUH 7KHGHVLJQVH[WHU QDOLVHGWKHLQWHULRUZRUOGRIWKHFKDUDFWHUV 7KH\FUHDWHGLQERWKWKH DFWRUV DQG WKH DXGLHQFH D VHQVLWLYLW\ WR WKH SUHYDOHQW WHQVLRQV E\ LQILOWUDWLQJ WKH VXEFRQVFLRXV WKURXJK D QHWZRUN RI DVVRFLDWLRQV WRR FRPSOH[WRUHVLVW +RZHYHU LQVWHDGRIILOOLQJWKLVVSDFHZLWKDFRUUH VSRQGLQJ GHJUHH RI QRQQDWXUDOLVWLF DFWLQJ 5HLQKDUGW GHOLEHUDWHO\ FDVWDQXPEHURIDFWRUVVNLOOHGLQUHDOLVPVRDVWRVHFXUHZKDWKHIHOW ZRXOGEHWKHPD[LPXPLPSDFW 7KLVZDVRIFRXUVHDULVN²IRUWKH REYLRXV UHDVRQ WKDW WKH DPDOJDPDWLRQ RI VW\OHV FRXOG HDVLO\ KDYH FRQWULEXWHG WR WKH GHWULPHQW RI HDFK HOHPHQW %XW LW ZRUNHG 5HLQKDUGWKDGEURNHQIUHHRIWKHFRQVWUDLQLQJFOXWFKHVRIQDWXUDOLVP ²EXWKDGUHWDLQHGLWVDSSHDOWRWKHH[WHQWWKDWVXLWHGKLP 5HLQKDUGW KDGVHWDERXWEHFRPLQJDMDFNRIPDQ\WUDGHV²DQGPDVWHURIDOO 7KHDPDOJDPDWLRQRIVW\OHVZRUNVRQO\LIWKHGLUHFWRUFDQHQVXUH WKH LQWHJUDWLRQ RI HDFK HOHPHQW LQWR D XQLILHG ZKROH JHDUHG WR SURGXFH D VLQJOH SUHPHGLWDWHG LPSUHVVLRQ 5HLQKDUGW·V HDUO\ IRUD\V LQWRV\PEROLVPKDGHPSKDVLVHGWKHLPSRUWDQFHRIFRORXU VRXQGDQG WH[WXUH DV EHDUHUV RI GUDPDWLF PHDQLQJ 'HVLJQ ZDV WKHUHIRUH QR
0$;5(,1+$5'7
ORQJHUVHFRQGDU\ DPDWWHURIEDFNGURSVDQGORFDWLRQV EXWDSULPDU\ IDFWRULQWKHFRPPXQLFDWLRQRIDQHPRWLRQ &RUUHVSRQGLQJO\ WKHFRQWULEXWLRQRIODQJXDJHZDVGRZQSOD\HGVR DV WR DFKLHYH D SURSHU EDODQFH RI HOHPHQWV 7KH 6XPXUXQ IRU H[DPSOH KDGOLWWOHRUQRWH[W DVWKHSULQFLSDOYHKLFOHRIWKHQDUUDWLYH ZDVSDQWRPLPHDQGGDQFH 7KHDSSHDORIWKH 7KH*KRVW6RQDWD ZDVOHVVDIXQFWLRQRI6WULQGEHUJ·VSRZHUIXOO\H[SUHVVLRQLVWLFWH[WWKDQ 5HLQKDUGW·V DELOLW\ WR PHHW LW ZLWK D SOHWKRUD RI GHYLFHV DLPHG DW VXVWDLQLQJWKHPDFDEUHPRRGRIWKHSOD\ 5HLQKDUGWKDGFKXUFKEHOOV VRXQGDQGVKDGRZVIDOO FRORXUVIDGHDQGILQJHUVGUXPRQWDEOHV 7KH PXVLF HYHQ SOD\HG WKURXJK WKH LQWHUYDO VR DV WR VXVWDLQ WKH DWPR VSKHUH RI XQUHOHQWLQJ WHQVLRQ )RU WKH 7KH %HJJDU KH KDG D VSRWOLJKW SLFN RXW FKDON\ ZKLWH IDFHV LQ D SLWFK EODFN VWDJH GLVHP ERGLHG H[SUHVVLRQV UHOHDVHG IURP WKH FRQVWUDLQWV RI WLPH DQG SODFH )RUWKH 'DQWRQ·V'HDWK KHKDGVSRWOLJKWVFRPHRQDQGJRRIILQ DFFRUGDQFH ZLWK WKH UK\WKP FHUWDLQ VFHQHV UHTXLUHG :KHQ FRORXU ZDVXVHG LWZDVLQDFFRUGDQFHZLWKDSDLQWHU·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·V VXFFHVV LQ WKLV UHJDUG ZDV WKH LQVWLWXWLRQ RI WKH VRFDOOHG 5HJLHEXFK WKH GHWDLOHG EOXHSULQWRXWRIZKLFKHDFKRIKLVSURGXFWLRQVJUHZ 7KHVHH[WUDRU GLQDU\GRFXPHQWVEHWUD\DOHYHORISODQQLQJWKDWLVTXLWHEUHDWKWDNLQJ LQ VFDOH DQG GHWDLO ZLWK QRWHV QRW RQO\ RQ WKH LQDQLPDWH HOHPHQWV VXFK DV GHVLJQ DQG OLJKWLQJ EXW RQ PRYHPHQW JHVWXUH H[SUHVVLRQ HYHQWRQHVRIYRLFH 7KH5HJLHEXFK ZDVWKHVWLOOSRLQWRIFRQWURODWWKH FHQWUH RI 5HLQKDUGW·V ZRUN ,W JDYH KLP WKH FRQILGHQFH WR PRYH EHWZHHQ VW\OHV DQG FRQYHQWLRQV ZLWKRXW IHDU RI EHLQJ DVVDLOHG E\ XQIRUHVHHQKD]DUGV ,WDOVRSHUPLWWHGKLPWRDVVHPEOHSURGXFWLRQVRQ WKHVFDOHRI(YHU\PDQ DQG7KH0LUDFOH WKDWUHTXLUHGKHSOD\*RGWRDQ H[WHQWWKDWKDGQHYHURFFXUUHGEHIRUH :LWK (YHU\PDQ YLUWX DOO\ WKH ZKROH RI FHQWUDO 6DO]EXUJ EHFDPH KLV VWDJH $FWRUV HQWHUHG QRW RQO\ IURP WKH DXGLHQFH EXW IURP QHDUE\ VWUHHWV DQG KRXVHV
0$;5(,1+$5'7
9RLFHVFDOOHGRXWQRWRQO\IURPZLWKLQWKHFKXUFKLQIURQWRIZKLFK WKH SOD\ ZDV VWDJHG EXW IURP WKH WRSV RI FDVWOHV DQG FDWKHGUDOV LQ QHLJKERXULQJ VTXDUHV DQG KLOOVLGHV (YHQ WKH VXQOLJKW ZDV XVHG WR EHVW DGYDQWDJH ZLWK WKH SHUIRUPDQFH EHLQJ WLPHG VR DV WR DOORZ FUXFLDOPRPHQWVLQWKHVWRU\WREHSOD\HGLQWKHOLJKWRIWKHVHWWLQJ VXQ DQG RWKHUV WR EH JOLPSVHG LQ WKH WKLFNHQLQJ GDUNQHVV RI QLJKW 7KH YHUVLRQRI7KH0LUDFOH ZKLFK5HLQKDUGWVWDJHGDW2O\PSLD LQ/RQGRQ LQYROYHGDFWRUV DFKRLURIDQGDQRUFKHVWUD RI DOO FRQWUROOHG E\ D QHWZRUN RI PHVVHQJHUV RQ ELF\FOHV ZKR FDUULHG 5HLQKDUGW·V LQVWUXFWLRQV DURXQG D VTXDUH IHHW RI SOD\LQJVSDFH 7KLVZDV5HLQKDUGWDWKLVEHVW WKHWKHDWUHGLUHFWRUDV ILHOGPDUVKDO DQGLWLVWKLVLPDJHRI5HLQKDUGWWKDWKDVSURYHGWREH WKHPRVWGXUDEOH 5HLQKDUGW·V UHOLDQFH RQ WKH LQVWLWXWLRQ RI WKH 5HJLHEXFK VXJJHVWV WKDW ZKDW KLV EDFNJURXQG LQ QDWXUDOLVP KDG LQ FRPPRQ ZLWK KLV VXEVHTXHQWO\ PRUH H[SUHVVLRQLVWLF DQG V\PEROLVW OHDQLQJV ZDV D KHDY\ HPSKDVLV RQ GLUHFWRULDO RUFKHVWUDWLRQ %XW 5HLQKDUGW ZDV FKDPHOHRQ HQRXJK WR OHW JR HYHQ RI KLV GHWHUPLQDWLRQ WR UHJXODWH HYHU\ DVSHFW RI D SURGXFWLRQ 5HLQKDUGW UHYLYHG $ 0LGVXPPHU 1LJKW·V'UHDP PDQ\WLPHVEHWZHHQ DQG ²DQGWKHHYROX WLRQ RI WKH SURGXFWLRQ LV WKH VWRU\ RI WKH JUDGXDO UHOLQTXLVKLQJ RI FRQWURO ,Q WKH HDUO\ GD\V WKH LPSUHVVLRQ RI WKH ZRRG ZDV IRU H[DPSOH FDUHIXOO\ FXOWLYDWHG WKURXJK WKH LQWHUSOD\ RI D SOHWKRUD RI FDUHIXOO\OLWVFUHHQV 7KURXJK WKHVH VLOYHU VFUHHQV WKH PRRQ VKLQHV SDOHO\ DQG VORZO\WKHOLJKWLQFUHDVHV 7KHVFUHHQVDUHUDLVHGVORZO\RQH DIWHU DQRWKHU LQ LQGLYLGXDO WUDLOV RI PLVW 6WUHDPV WULFNOH« 2Q WKH ULJKW LV VHHQ D ODNH JOLQWLQJ EHWZHHQ WKH WUHHV« 0RRQOLJKW ZKLFK IDOOV LQ SDWFKHV RQ WKH JUDVV WKURXJK WKH OHDISDWWHUQ 7KHODNHLVOLWIURPEHKLQG ,ELG ²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
96(92/2'0(<(5+2/'
IURPZKLFKWRSO\KLVORYHDEOHPLVFKLHI 5HLQKDUGW ZKRKDGVSHQWD OLIHWLPH FRQWULYLQJ WR FUHDWH D ZKROH UDQJH RI HIIHFWV LQ D ZKROH UDQJHRIVW\OHV KDGFHDVHGWRFRQFRFW GHYLVHDQGIDVKLRQKLVSOD\LQJ HQYLURQPHQW ,W WDNHV FRXUDJH WR UHOHDVH FRQWURO HVSHFLDOO\ LI RQH KDV VSHQW D OLIHWLPHHQVXULQJWKDWRQHUHWDLQVLW $QGLWWDNHVFRXUDJHWRDVVXPH WKDW RQH ZLOO UHWDLQ RQH·V FRQWURO LQ WKH IDFH RI WKH LQVXSHUDEOH GHPDQGVPDGHE\SURGXFWLRQVRIWKHVL]HRIWKH (YHU\PDQ &RXUDJH LVDPRUDOWHUP QRWDQDHVWKHWLFRQH²EXWLWLVWKHFRUHRIZKDWLV PRVW IDVFLQDWLQJ DERXW 5HLQKDUGW ,W WDNHV FRXUDJH WR XQGHUWDNH WR ZRUN LQ HYHU\ VW\OH DQG FRQYHQWLRQ WKDW WKH GUDPDWLF IRUP KDV WR RIIHU ,QWKLVUHVSHFW5HLQKDUGW·VZRUNDVDZKROHLVLWVHOIDEDURTXH VSHFWDFOH H[HUFLVLQJDIDVFLQDWLRQWKDWKDVPRUHLQFRPPRQZLWKWKH JUHDWWDOHVRIWKHWULXPSKRIWKHKXPDQVSLULWWKDQZLWKWKHZRUNRI WKLV RU WKDW GLUHFWRU 5HLQKDUGW·V JUHDWQHVV LV D IXQFWLRQ RI KLV LQILQLWHO\FDSDFLRXVYLVLRQ KLVFDSDFLW\WRFUHDWHDVPDQ\ZRUOGVLQDV PDQ\ZD\VDVZHEHOLHYHFRXOGSRVVLEO\H[LVW )XUWKHUUHDGLQJ 6W\DQ -/ 0D[5HLQKDUGW &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV 6+20,70,77(5
96(92/2'0(<(5+2/' ² 7KH 5XVVLDQ GLUHFWRU 9VHYRORG 0H\HUKROG LV SHUKDSV WKH PRVW XQGHUUDWHGRIWKHJUHDWPRGHUQWKHDWUHGLUHFWRUV $OWKRXJKWKHDWUH SUDFWLWLRQHUV KDYH ORQJ KDLOHG 0H\HUKROG DV WKH¶IDWKHU RI PRGHUQ WKHDWUH· WKH HYHU\GD\ WKHDWUHJRHU FRQWLQXHV WR EH LJQRUDQW RI WKH VFDOH RI WKH UHYROXWLRQ 0H\HUKROG LQVWLJDWHG LQ (XURSHDQ WKHDWUH DW WKHWXUQRIWKHFHQWXU\ 7KHUHDUHWZRUHDVRQVIRUWKLV )LUVW WRGD\·V DXGLHQFHVDUHVRDFFXVWRPHGWRWKHDWULFDOLW\ WRWKHDEVHQFHRI VWDJH FXUWDLQVDQGYLVLEOHVFHQHFKDQJHV WRWKHPLQLPDOLVWXVHRIVHWVDQG VWDJH SURSHUWLHV WKDW WKH\ DUH XQDEOH WR DSSUHFLDWH MXVW KRZ UDGLFDO WKH XVH RI WKHVH GHYLFHV ZDV LQ 0H\HUKROG·V WLPH 6HFRQG D VLJQLIL FDQW SDUW RI 0H\HUKROG·V DFKLHYHPHQW LV VWLOO ZURQJO\ DWWULEXWHG WR %UHFKW 7KH EUHDN ZLWK 6WDQLVODYVNLDQ UHDOLVP WKH XVH RI HSLVRGLF VWUXFWXUHV SXQFWXDWHG ZLWK PXVLF DQG VRQJ WKH WHQGHQF\ WR GUDZ DWWHQWLRQWRWKHILFWLRQDOEDVLVRIVWDJHDFWLRQ WKHXVHRISURMHFWLRQV DQG FDSWLRQV WKH LQVWLWXWLRQ RI D FULWLFDO GLVWDQFH EHWZHHQ WKH DFWRU DQG WKH UROH DUH DOO GHYLFHV ZKLFK 0H\HUKROG XVHG ZHOO EHIRUH
96(92/2'0(<(5+2/'
%UHFKW \HWLQWKHPLQGRIWKHFDVXDOWKHDWUHORYHUWKHVHDUHDOODVVRFL DWHGSULQFLSDOO\ZLWKWKHZRUNRIWKH%HUOLQHU(QVHPEOH 0H\HUKROG ZRXOG EH WKH ILUVW WR DFNQRZOHGJH WKDW KH GLG QRW LQYHQWWKHVHGHYLFHVDVPXFKDVUHGLVFRYHUWKHWKHDWULFDOLW\WKDWKDG DOZD\VEHHQDIHDWXUHRIWKHJUHDWGUDPDWLFWUDGLWLRQVRIWKHSDVW EXW ZKLFKKDGEHHQVDFULILFHGWRWKHQLQHWHHQWKFHQWXU\SUHRFFXSDWLRQ ZLWK UHDOLVP 0H\HUKROG·V ZULWLQJV DUH UHSOHWH ZLWK UHIHUHQFHV WR DQFLHQW *UHHN DQG 6KDNHVSHDUHDQ WKHDWUH WR WKH WUDGLWLRQ RI WKH FRPPHGLD WRWKHFDUQLYDOVDQGIHVWLYDOVRIVL[WHHQWKFHQWXU\(XURSH² DOO RI ZKLFK IORXULVKHG SUHFLVHO\ EHFDXVH WKH\ ZHUH QRW WLHG WR WKH QHHGOHVVO\UHVWULFWLYHIL[DWLRQZLWKVXVWDLQLQJVWDJHLOOXVLRQ 1HLWKHU WKH DQWLTXH VWDJH QRU WKH SRSXODU VWDJH RI 6KDNHVSHDUH·VWLPHKDGDQ\QHHGIRUWKHVFHQHU\ZKLFKWKH VWULYLQJIRULOOXVLRQGHPDQGVQRZDGD\V« ,WZDVWKHVDPHLQ PHGLHYDO -DSDQ ,Q WKH 1RK SOD\V ZLWK WKHLU UHILQHG FHUH PRQ\ LQ ZKLFK PRYHPHQW GLDORJXH DQG VLQJLQJ ZHUH DOO ULJLGO\VW\OL]HG «VSHFLDOVWDJHDVVLVWDQWV NQRZQDV¶NXURJR· DQGFODGLQVSHFLDOEODFNFRVWXPHVUHVHPEOLQJFDVVRFNV XVHG WRSURPSWWKHDFWRUVLQIXOOYLHZRIWKHDXGLHQFH« %UDXQ ² ,Q 0H\HUKROG·V SURGXFWLRQ RI 7KH )DLUJURXQG %RRWK WKH SURPSWHU DQG WKH VWDJH KDQGV ZHUH YLVLEOH 0H\HUKROG·V XVH RI WKH IRUHVWDJH RI GDQFH RI WKH DEVHQFH RI HPRWLRQDO PRWLYDWLRQ DOO GHULYHGLQRQHZD\RUDQRWKHUIURPKLVEULHIH[SHULHQFHRI-DSDQHVH WKHDWUH 0H\HUKROGZDVQRW¶RULJLQDO· LQKLVXVHRIWKHVHGHYLFHV +LV DFKLHYHPHQW ZDV WR KDYH UHFRJQLVHG WKH YDOXH RI WKHVH WHFKQLTXHV ZKHQ UHDOLVP ZDV DOOSHUYDVLYH DQG WR KDYH KDG WKH FRXUDJH WR UH LQWURGXFHWKHDWULFDOLW\WRWKHWKHDWUH $WWKHFRUHRI0H\HUKROG·VUHYROXWLRQZDVDQXQGHUVWDQGLQJRIWKH PDQQHULQZKLFKWKHDWUHXVHVFRQYHQWLRQDVDPHDQVRIKHOSLQJWKH DXGLHQFHWRFRQVWUXHVWDJHDFWLRQDVUHDOLW\ ¶$UWDQGOLIHDUHJRYHUQHG E\GLIIHUHQWODZV· LELG ZULWHV0H\HUKROG ¶WKHSOD\RIWKHDFWRU GLIIHUVIURPWKHEHKDYLRXURISHRSOHLQOLIHE\LWVVSHFLDOUK\WKPDQG E\ WKH VSHFLDO GHYLFHV RI SOD\LQJ· /HDFK 7KH DXGLHQFH FRPHVWRWKHWKHDWUHHTXLSSHGQRWPHUHO\ZLWKDQXQGHUVWDQGLQJ RI WKHVH ODZV EXW ZLWK DQ DSSHWLWH IRU WKH XVH RI¶VSHFLDO GHYLFHV· WKDW FRPSULVHDQHVVHQWLDOSDUWRIWKHHQWHUWDLQPHQWWKHDWUHDIIRUGV ¶LQWKH WKHDWUHWKHVSHFWDWRU·VLPDJLQDWLRQLVDEOHWRVXSSO\WKDWZKLFKLVOHIW XQVDLG ,W LV WKLV P\VWHU\ DQG WKH GHVLUH WR VROYH LW ZKLFK GUDZ VR PDQ\SHRSOHWRWKHWKHDWUH· %UDXQ
96(92/2'0(<(5+2/'
%\QHXWUDOLVLQJWKHGLVWDQFHEHWZHHQDUWDQGOLIH QDWXUDOLVPGHQLHV WKH VSHFWDWRU WKH SOHDVXUH RI GHFRGLQJ VWDJH DFWLRQ ¶0RUH WKDQ DQ\RQH WKH0RVFRZ$UW7KHDWUHLVWREODPHIRUWKHSDVVLYLW\RI WKH VSHFWDWRU ZKRP LW KHOG LQ WKUDOO IRU VR ORQJ· LELG ZURWH 0H\HUKROG SURSRVLQJ DV DQ DOWHUQDWLYH D WKHDWUH LQ ZKLFK WKHUH ZRXOGEH¶QRSDXVHV QRSV\FKRORJ\ QR¶¶DXWKHQWLFHPRWLRQV·· · DOORI ZKLFK ZRXOG EH UHSODFHG E\¶SOHQW\ RI OLJKW SOHQW\ RI KLJK VSLULWV >DQG@ « WKH SDUWLFLSDWLRQ RI WKH DXGLHQFH LQ WKH FRUSRUDWH FUHDWLYH DFW RI WKH SHUIRUPDQFH· %UDXQ )RU RQH WXWRUHG E\ 1HPLURYLFK'DQFKHQNR DQG WKHQ UDLVHG RQ WKH KDOORZHG WUDGL WLRQVRIWKH0RVFRZ$UW7KHDWUH VXFKDSURMHFWZDVUHYROXWLRQDU\ 1RW VXUSULVLQJO\ 0H\HUKROG·V UHODWLRQVKLS ZLWK WKH VHQLRU ILJXUHV RIWKH0RVFRZ$UW7KHDWUHZDVDOPRVWDOZD\VIUDXJKWZLWKFRQIOLFW 6WDQLVODYVN\ GLGHYHQWXDOO\HQFRXUDJH0H\HUKROGWRRSHQD6WXGLR 7KHDWUHDWWKH0RVFRZ$UW7KHDWUH 3DUWRIWKHUHDVRQIRUWKLVZDV 6WDQLVODYVN\·V JURZLQJ VHQVH RI WKH IDLOXUH RI UHDOLVP WR DGGUHVV WKH VRFDOOHG¶1HZ'UDPD· RI V\PEROLVW GUDPDWLVWV VXFK DV 0DHWHUOLQFN 9HUKDHUHQDQG3U]\E\V]HZVNL $WWKHFRUHRIWKHV\PEROLVWVHQVLELOLW\ ZDV D GHVLUH WR SHQHWUDWH EHQHDWK WKH VXUIDFH RI WKLQJV WR HYRNH D UHDOLW\ WKDW FXWV DFURVV WKH DSSHDUDQFHV ZLWK ZKLFK 6WDQLVODYVN\ KDG EHHQVRIDVWLGLRXVO\LQYROYHG ,WZDVLQKLVDWWHPSWWRILQGDSSURSULDWH ZD\VRIVWDJLQJWKHQHZV\PEROLVWGUDPDWKDW0H\HUKROGIRUJHGKLV LGHQWLW\DVDUDGLFDOQHZGLUHFWRURIWKH5XVVLDQDYDQWJDUGH 7KH FRQFHSW RI WKH V\PERO LV QRW PHUHO\ VHPDQWLF ZKHUHE\ VRPHWKLQJ¶VWDQGV IRU· VRPHWKLQJ HOVH LW DOVR LPSOLHV D PHDVXUH RI HFRQRP\ZKHUHE\DODUJHDQGFRPSOH[SKHQRPHQRQLVGLVWLOOHGLQWR DVLQJOHLPDJH 7KHSOHDVXUHDV\PERO\LHOGVLVDIXQFWLRQERWKRIWKH VNLOORIWKHSRHW ZKRLVDEOHWRILQGLQDVLPSOHILJXUHWKHV\QWKHVLVRI D PRUH LQWULFDWH DQG XQVWDEOH UHDOLW\ DQG WKH LPDJLQDWLRQ RI WKH UHDGHU ZKRWUDYHOVWKLVGLVWDQFHLQUHYHUVHDQGGHFLSKHUVWKHHPEOHP ,Q WKH WKHDWUH WKLV LQYROYHV WKH GHSOR\PHQW RI D IHZ WHOOLQJ IHDWXUHV ZKLFK ZKHQ LQWHUSUHWHG GHOLYHU D PRUH HODERUDWH UHDOLW\ 7KXV IRU H[DPSOH ZKHQ 0H\HUKROG ZULWHV RI WKH VHW IRU KLV SURGXFWLRQ RI 6FKOXFN DQG -DX WKDW WKH ¶PRRG RI LGOHQHVV DQG ZKLPV\ LV FRQYH\HG E\ D URZ RI DUERXUV· WKH DUERXUV VLQJOHKDQGHGO\ VLJQLI\ ZKDW6WDQLVODYVN\ZRXOGKDYHFRPPXQLFDWHGE\FUDPPLQJKLVVWDJH IXOORIGHFDGHQWGHOLJKWV $JDLQ¶LQJLYLQJ7HVPDQDORRVHMDFNHWZLWK VORSLQJ VKRXOGHUV DQ H[DJJHUDWHGO\ ZLGH WLH DQG EURDG WURXVHUV WDSHULQJ VKDUSO\ WRZDUGV WKH ERWWRPV WKH GHVLJQHU 9DVVLO\ 0LOLRWWL KDVVRXJKWWRH[SUHVVWKHHVVHQFHRI ¶¶7HVPDQLVP·· · %UDXQ ² ZKLFK LV RI FRXUVH D IDU FU\ IURP WKH QDWXUDOLVWLF REVHVVLRQ ZLWK HVWDEOLVKLQJ¶WKHH[DFWVW\OHRIVOHHYHZRUQLQWKHWLPHRI/RXLV;9·
96(92/2'0(<(5+2/'
LELG ,QVWHDGRIOLIHOLNHH[WHUQDOV ZHJHWDQLQWHULRUSRUWUDLWRI FKDUDFWHU WKDW PXVW DFWLYHO\ EH GHFLSKHUHG 7KH V\PEROLF XVH RI VHWWLQJDQGFRVWXPHQRWRQO\DFKLHYHVDJUHDWHUGHQVLW\RIH[SUHVVLRQ ²FRPPXQLFDWLQJPRUHZLWKDJUHDWHUHFRQRP\RIPHDQV²EXWDOVR LQYROYHVWKHDXGLHQFHWRDJUHDWHUH[WHQW 6W\OLVDWLRQUHTXLUHVWKDWWKH VSHFWDWRU HQJDJH FUHDWLYHO\ ZLWK WKH DFWLRQ DQG FRPSOHWH LQ KLV RU KHUPLQG·VH\HZKDWKDVPHUHO\EHHQFU\SWLFDOO\VXJJHVWHGRQVWDJH ,Q WKH \HDUV LPPHGLDWHO\ SUHFHGLQJ WKH 5XVVLDQ 5HYROXWLRQ WKH SDUWLFLSDWLRQRIWKHDXGLHQFHLQ0H\HUKROG·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·V 7KH 'DZQ D V\PEROLVW ZRUN ZKLFK 0H\HUKROG UDSLGO\ DGDSWHG LQWR D SOD\¶ZLWK RQH DLP RQO\ WR VHUYH WKHFDXVHRIWKH5HYROXWLRQ· %UDXQ $GPLVVLRQ ZDV IUHH WKH ZDOOV ZHUH KXQJ ZLWK KRUWDWRU\ SODFDUGV DQGWKHDXGLHQFHZDVVKRZHUHGDWLQWHUYDOVGXULQJ WKHSOD\ZLWKOHDIOHWV $OVRGHULYHGIURPWKHPHHWLQJZDVWKH GHFODPDWRU\ VW\OH RI WKH DFWRUV ZKR PRVWO\ UHPDLQHG PRWLRQOHVVDQGDGGUHVVHGWKHLUVSHHFKHVVWUDLJKWDWWKHDXGL HQFH« $ IRUWQLJKW DIWHU WKH SURGXFWLRQ KDG RSHQHG WKH DFWRU SOD\LQJ WKH +HUDOG LQWHUUXSWHG KLV SHUIRUPDQFH WR GHOLYHUWKHQHZVUHFHLYHGWKHGD\EHIRUHWKDWWKH5HG$UP\ KDG PDGH D GHFLVLYH EUHDNWKURXJK LQWR WKH &ULPHD« $V WKH DSSODXVH GLHG GRZQ D VROR YRLFH EHJDQ WR VLQJ WKH 5HYROXWLRQDU\ IXQHUDO PDUFK« 7KH DFWLRQ RQ VWDJH WKHQ UHVXPHG LWV FRXUVH« 7KH 'DZQ GHSHQGHG YHU\ PXFK RQ WKHPRRGRIWKHDXGLHQFHRQWKHQLJKWIRULWVVXFFHVV 7KH DXGLHQFH ZDV QRZ D VHJPHQW RI¶WKH SHRSOH· ZKR KDG WR EH ¶VHUYHG· E\WKHWKHDWUH 0H\HUKROG VHQVLWLYHDVHYHUWRWKHVSLULWRIWKH WLPHV UHDOLVHGWKDWLWZDVQRORQJHUSRVVLEOHWRNHHSDUWDQGSROLWLFV DSDUW
96(92/2'0(<(5+2/'
:KDW 0H\HUKROG·V SROLWLFDO WKHDWUH KDG LQ FRPPRQ ZLWK KLV HDUOLHU V\PEROLVW ZRUN ZDV WKH HDVH ZLWK ZKLFK LW PHDVXUHG LWV GLVWDQFH IURP UHDOLW\ DQG GHFODUHG LWVHOI WR EH PHUHO\ DQ DUWHIDFW D SURGXFWRIKXPDQFRQWULYDQFH 7KXV0H\HUKROG·VKRXVHOLJKWVRIWHQ UHPDLQHG RQ DQG KLV VWDJH OLJKWV UHPDLQHG XQFRQFHDOHG +H ZRXOG VHDW KLV DXGLHQFH DURXQG WKH DFWLRQ DQG XVH WKH DLVOHV DQG VWHSV ZLWKLQ WKH DXGLWRULXP DV SOD\LQJ DUHDV VR WKDW VSHFWDWRUV FRXOG VHH HDFKRWKHUZDWFKLQJWKHGUDPD :KHQ0H\HUKROG·V+DUOHTXLQOHDSW WKURXJKDZLQGRZ LWWXUQHGRXWWREHRQO\DIUDPHZLWKEOXHSDSHU VWXFNWRLW 0H\HUKROG·V SUREOHP ZDV WKDW KLV DFWRUV WUDLQHG LQ WKH QDWXUDOLVW PRXOG IRXQG VXFK DUWLILFLDOLW\ H[WUHPHO\ GLIILFXOW WR VXVWDLQ 0H\HUKROG·V VROXWLRQ ZDV WR HYROYH DQ DOWHUQDWLYH V\VWHP RI DFWRU WUDLQLQJWKDWZRXOGEULQJDERXWZKDWKHFDOOHG¶WKHDGYHQWRIWKHQHZ DFWRU· %UDXQ 7KH7KHDWUH6WXGLRGHPRQVWUDWHGWRHYHU\ERG\ZKRPDGH LWVDFTXDLQWDQFHWKDWLWLVLPSRVVLEOHWREXLOGDQHZWKHDWUH RQROGIRXQGDWLRQV (LWKHURQHPXVWFRQWLQXHWKHFRQVWUXF WLRQRIWKH$QWRLQH6WDQLVODYVN\WKHDWUH RURQHPXVWEHJLQ DOORYHUDJDLQ« ,W ZDV WKHQ WKDW LW VWUXFN PH WKDW DQ DFWLQJ VFKRRO « PXVWEHRUJDQL]HGVRWKDWDQHZWKHDWUHDULVHVRXWRILW ,ELG ,Q 0H\HUKROG RSHQHG D VWXGLR WR WUDLQ DFWRUV LQ YRLFH DQG PRYHPHQWWHFKQLTXHVDORQJZLWKVRPHJURXQGLQJLQWKHKLVWRU\RI WKH SRSXODU WKHDWUH WUDGLWLRQV VXFK DV WKH FRPPHGLD $V (UDVW *DULQ UHFDOOV ¶EHJLQQLQJZLWKHOHPHQWDU\H[HUFLVHVLQPHWULFDOSDWWHUQV ZH SURJUHVVHG WR PRUH FRPSOLFDWHG WDVNV PDVWHU\ RI IUHH UK\WKPLFDO PRYHPHQW DJDLQVW D PHWULFDO SDWWHUQ DQG ILQDOO\ WR PDVWHU\ RI IUHH PRYHPHQWLQDQXQUHVWULFWHGFRXQWHUSRLQW· 6FKPLGW $ORQJ ZLWK WUDLQLQJ LQ J\PQDVWLFV 0H\HUKROG·V DFWRUV KDG WR VWXG\DQDWRP\DQGSK\VLRORJ\ 7KLVFRPELQDWLRQRIDFDGHPLFULJRXU DQG SK\VLFDO GLVFLSOLQH OHG WR WKH HYROXWLRQ RI ¶ELRPHFKDQLFV· D V\VWHP RI PRYHPHQW ZKLFK HPSOR\HG FRQIOLFWV EHWZHHQ RSSRVLQJ IRUFHVDVDPHDQVRIJHQHUDWLQJGUDPDWLFWHQVLRQLQWKHERG\ ,Q WLPH WKH GLVFLSOLQH RI ELRPHFKDQLFV FDPH WR LQIOXHQFH WKH PDQQHU LQ ZKLFK VWDJH DFWLRQ ZDV SUHVHQWHG 6HTXHQFHV RI DFWLRQ ZHUH LQWURGXFHG LQWR VFHQHV WKDW FRQWUDGLFWHG WKHLU RYHUDOO PRPHQWXP VR DV WR KHLJKWHQ WKH VLJQLILFDQFH RI WKH DFWLRQ 0H\HUKROG ZRXOG GHOLEHUDWHO\ LQWHUUXSW VFHQHV UHTXLULQJ D TXLFN
96(92/2'0(<(5+2/'
WHPSRZLWKPRPHQWVRIVORZPRYHPHQWVRDVWRFUHDWHDUK\WKPLF WHQVLRQWKDWZRXOGJULSWKHVSHFWDWRUZLWKLWVXQH[SHFWHGQHVV 6FHQHV ZRXOGDOVREHSOD\HGLQVXFKDPDQQHUWKDWRSSRVLQJHPRWLRQVZHUH SUHVHQWHGVLPXOWDQHRXVO\ %UXQR « VWRRG EHIRUH WKH DXGLHQFH KLV IDFH SDOH DQG PRWLRQOHVV DQG ZLWK XQYDU\LQJ LQWRQDWLRQ « XWWHUHG KLV JUDQGLORTXHQWPRQRORJXHV %XWDWWKHVDPHWLPHWKLV%UXQR ZDVEHLQJULGLFXOHGE\WKHDFWRUSHUIRUPLQJDFUREDWLFVWXQWV DWWKHPRVWLPSDVVLRQHGPRPHQWVRIKLVVSHHFKHV EHOFKLQJ DQG FRPLFDOO\ UROOLQJ KLV H\HV ZKLOVW HQGXULQJ WKH PRVW GUDPDWLFDQJXLVK %RULV$OSHUVLQ%UDXQ 2QH FDQ VHH KRZ ELRPHFKDQLFV GLG QRW PHUHO\ JLYH WKH DFWRU WKH SK\VLFDO PHDQV RI H[HFXWLQJ VXFK FRQWRUWLRQV EXW DOVR WKH PHQWDO GH[WHULW\WREHDEOHWRLQKDELWWZRSRVLWLRQV²WKDWRIDFWRUDQGFKDU DFWHU ² DW RQFH 7KLV ZDV 0H\HUKROG·V ¶QHZ DFWRU· RQH ZKR ZDV FDSDEOH RI UHWDLQLQJ D FULWLFDO GLVWDQFH IURP WKH FKDUDFWHU DQG ZDV DEOH DVDUHVXOW WRSHUVXDGHWKHDXGLHQFHWRGRVRDVZHOO :KHQ 0H\HUKROG·V DXGLHQFH ZDV EXIIHWHG DURXQG E\ DEUXSW FKDQJHV RI SHUVSHFWLYH LW ZDV DV PXFK WR GUDZ DWWHQWLRQ WR FHUWDLQ HOHPHQWVLQWKHGUDPDDVWRJHQHUDWHLQWKHDXGLHQFHDQH[SHULHQFH RI WKH XQFHUWDLQW\ ZKLFK LQ VSLWH RI 0H\HUKROG·V SURIHVVHG %ROVKHYLVP ZDV GHHSO\ V\PSWRPDWLF RI WKH XQSUHGLFWDEOH ZRUOG 0H\HUKROG EHOLHYHG KH LQKDELWHG 0H\HUKROG EURXJKW WKHDWUH LQWR WKHWZHQWLHWKFHQWXU\QRWPHUHO\E\UHLQWURGXFLQJWKHDWULFDOLW\EXW E\ IDVKLRQLQJ D ZRUNLQJ LPDJH RI D KHWHURJHQHRXV DQG XQFHUWDLQ ZRUOG $WEDVH ZKDWLVLQWHUHVWLQJDERXW0H\HUKROGLVQRWVRPXFK WKHLVVXHRIDUWLILFLDOLW\YHUVXVUHDOLVPDVPXFKDVWKHGDZQRIDGHHS VHDWHG LQGHWHUPLQDF\ RI D PXOWLSOLFLW\ RI YLDEOH ZRUOGYLHZV ,W ZDV LQWKLVVHQVHWKDW0H\HUKROGZDVWUXO\PRGHUQEHIRUHKLVWLPH 1RWHV
%UDXQ ( 7KH'LUHFWRUDQGWKH6WDJH /RQGRQ 0HWKXHQ 0\ LWDOLFV ,ELG ²
)XUWKHUUHDGLQJ %UDXQ ( HG 0H\HUKROGRQ7KHDWUH /RQGRQ (\UH0HWKXHQ ³³ 7KH7KHDWUHRI0H\HUKROG /RQGRQ 0HWKXHQ
-$&48(6&23($8
/HDFK 5 9VHYRORG 0H\HUKROG &DPEULGJH &DPEULGJH 8QLYHUVLW\ 3UHVV 6FKPLGW 3 HG 0H\HUKROGDW:RUN /RQGRQ $SSODXVH 6+20,70,77(5
-$&48(6&23($8 ² -XGJHG E\ KLV RZQ VWDQGDUGV &RSHDX ZDV D UHODWLYH IDLOXUH DV D GLUHFWRUDQG RQHPLJKWDGG DVDQDFWRU DSOD\ZULJKWDQGDGUDPDWLF SHGDJRJXH 7KDW MXGJHPHQW VKRXOG QRW VXUSULVH XV VLQFH KLV UROH PRGHOV ZHUH $HVFK\OXV 0ROLqUH 6KDNHVSHDUH DQG =HDPL &RSHDX·V ZULWLQJVDUHSHUPHDWHGZLWKUHJUHWWKDWKHGLGQRWOLYHLQDWLPHWKDW ZDVULSHIRUWKHDWULFDOH[SORLWDWLRQ DJROGHQDJHZKHQYLWDOVWUDQGVRI SRHWLFDQGSROHPLFFRXOGKDYHEHHQGUDZQWRJHWKHUE\DQKRPPHGH WKpkWUH RIJHQLXV SUHIHUDEO\KLVRZQ :RUNLQJDVKHGLGODUJHO\GXULQJ DQG EHWZHHQ WKH WZR ZRUOG ZDUV VXFK DQ HQGXULQJ DFKLHYHPHQW SURYHG XQDWWDLQDEOH ² HLWKHU KH ZDV QRW WKH PDQ RU LW ZDV QRW WKH KRXU RUERWK $QG3DULV ¶WKDWPRVWIDVKLRQDEOHRIFLWLHV· DVKHFDOOHG LW ZDV FHUWDLQO\ QRW WKH SODFH +H ZDV WHPSHUDPHQWDOO\ LOOGLVSRVHG WRWKHNLQGRIVXFFHVVZKLFKWKHFLW\KDGWRRIIHU 7KHWUXWKLVWKDWVXFFHVV IDUIURPJRLQJWRP\KHDG FRQWLQ XDOO\VREHUHGPH 7KDWLVEHFDXVH DV,ZDVOHDUQLQJP\FUDIW , EHFDPH DFTXDLQWHG ZLWK LWV GLIILFXOWLHV DQG LWV UHVRXUFHV WKHPRUH,ZRUNHG WKHPRUH,EHFDPHGD]]OHGE\WKHSRVVL ELOLWLHV RI P\ DUW 1HZ LGHDV ILOOHG P\ PLQG GLVFRYHULHV HQULFKHG E\ LPDJLQDWLRQ $QG QRQH RI WKHVH WKLQJV FRXOG KDYH D SODFH LQ RXU IUHQ]LHG GDLO\ ZRUN ZKLFK ZDV VORZO\ HURGLQJP\VWUHQJWKDQGWDNLQJPHDZD\IURPP\VHOI 5XGOLQDQG3DXO 7KHWKLQJVWKDWKHFRXOGZRUNRQLQFOXGHGVXFKNH\FRQFHSWVDV VDQFWLW\ RI WKH WH[W VFHQLF DUFKLWHFWXUH DV RSSRVHG WR LQGLYLGXDO SURGXFWLRQGHVLJQ WKHUHQRYDWLRQRIFODVVLFDOWKHDWUHDQGWKH VHDUFK IRU D FRQWHPSRUDU\ VW\OH RI SOD\ZULJKWLQJ +RZHYHU WKH QHZ LGHDV ZKLFK FUHDWHG IRU KLP VXFK DQ HYHUUHFHGLQJ KRUL]RQ LQFOXGHG DPRQJVWRWKHUV WKHFUHDWLRQRIDQHZLPSURYLVHGFRPHG\DQGDQHZ ¶FKRULF· WUDJHG\ HQVHPEOHSOD\LQJ LQD¶EURWKHUKRRG· DVKHFDOOHGLW DQG D TXHVW IRU D SRSXODU UHOLJLRXV WKHDWUH &RSHDX ZDV WKH ILUVW WR DGPLW WKDW KLV YLVLRQ ZDV DSRVWROLF ,Q KH ZURWH WR -HDQ 6FKOXPEHUJHU WKH ILUVW PDQDJHU RI KLV 3DULVLDQ WKHDWUH WKH 9LHX[
-$&48(6&23($8
&RORPELHU ¶6RPHKDYHDOUHDG\FDOOHGPH GHULVLYHO\RULQVXOWLQJO\ DQ DSRVWOH ,I,DPQRWWKDW ,DPQRWKLQJ·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¶F· UHSHUWRLUH RI SDVW DQG PRGHUQ FODVVLFV DQG QHZ SOD\V 'XULQJWKHZDUKHKDGZULWWHQWRRQHRIKLVSULQFLSDOFROODERUDWRUV /RXLV -RXYHW WKDW KH VRXJKW¶FRPPXQLRQ RI WKH KHDUW DQG RI WKH ZKROHEHLQJ LQDZRUNZKLFKLVDVLPSDVVLRQHG«DVVDFUHGDVWKDW RIWKHDUWLVDQVRIWKH0LGGOH$JHV DQGOLNHWKHPLQVLPSOLFLW\DQGLQ ODFN RI SUHWHQVLRQ · 0LJQRQ +H ZDQWHG QR SDUW RI WKH /LWWOH 7KHDWUH PRYHPHQW EXW DV D QHFHVVDU\ ILUVW VWHS LQ WKH UH GHYHORSPHQWRIWKHDUWRIWKHDWUH KHZDVFRQWHQWZLWKDQDXGLWRULXP RIRQO\VHDWVSURYLGHGWKHUHZDVDQDXGLHQFH¶FRPSRVHGSDUWO\RI LQWHOOLJHQW WKHDWUHORYHUV SDUWO\ RI SHRSOH ZKR QR ORQJHU ZDQW WR HQFRXUDJH WKH EDQDOLW\ DQG LQVLQFHULW\ RI FRPPHUFLDO WKHDWUH DQG SDUWO\E\DQHZFURVVVHFWLRQRIWKHSXEOLF· 5XGOLQDQG3DXO 2QHVXFKVSHFWDWRU 5DLQHU0DULD5LONH FRPPHQWHG :KDW D SOHDVXUH WR VHH ZHOOLQWHQWLRQHG IRUFHV RQ VWDJH VHHPO\ GHFHQW GHYHORSLQJ WKHLU WKRXJKWV LQ IURQW RI \RX QRWZLVKLQJWRZLQ\RXRYHUGHVSLWH\RXUVHOIE\WKHXVHRI WULFNV EXW VLPSO\ E\ EHLQJ WKHUH DV ZHOORUGHUHG KXPDQLW\ :KDW D EHDXWLIXO KHDOWK\ DQG KDSS\ FRQFHSWLRQ RI WKHDWUH DQGKRZPXFKZHDOOKDYHQHHGRILW 0LJQRQ &RSHDX·VYLVLRQRIWKH9LHX[&RORPELHUZDVDVD¶SXUHLQVWUXPHQW· DQGXQDGXOWHUDWHGPHGLXPIRUWKHEHVWGUDPDWLFSRHWU\DYDLODEOH WKDW ZDVZK\ IRULWVRSHQLQJLQ KHFUHDWHGZKDWKHFDOOHGDGLVSRVLWLI
-$&48(6&23($8
IL[H DQXQFKDQJHDEOHDUFKLWHFWXUDOVHWWLQJ +HIHOWWKDWWH[WVZHUH GH VWDELOLVHGE\FKDQJLQJGpFRU ZKHUHDV¶DJLYHQVWDJHDUFKLWHFWXUHFDOOV IRUWK GHPDQGV DQG JLYHV ULVH WR D FHUWDLQ GUDPDWLF FRQFHSWLRQ DQG VW\OH RI SUHVHQWDWLRQ· 5XGOLQ DQG 3DXO 7KH VWDJHV RI KLV PDVWHUV WKH*UHHNV WKH(OL]DEHWKDQV 0ROLqUHDQG1RK DOOKDGVXFK DQLPPXWDEOHTXDOLW\ )RULWV UHRSHQLQJ WKH9LHX[&RORPELHU VWDJHZDVUHFDVWLQFRQFUHWHZLWKIOLJKWVRIVWDLUVDQGUDPSV UHPLQLV FHQWRIWKHGHVLJQVRI$GROSKH$SSLD LQIOH[LEOH DGDPDQWLQHSODQHVRQ ZKLFK WR DFW 'XULQJ WKH VXPPHU FORVXUH LQ ZKHQ ORRNLQJ DW WKHVWDJHRQHGD\¶LQLWVQDWXUDOVWDWH· KHUHIOHFWHG¶,XQGHUVWRRGWKDW HYHU\WKLQJ WKDW KDG KDSSHQHG WR LW ODVW VHDVRQ ² SURSV FRVWXPHV DFWRUVDQGOLJKWV²KDGRQO\GLVILJXUHGLW ,WLVWKXVIURPWKHVWDJHWKDW ZHPXVWSURFHHG·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pFRU KH ZRXOG VNHWFK RXW KLV VWDJLQJ SODQ LQ WHUPV RI JURXSLQJV DQG HQWUDQFHV DQG H[LWV DQG WKHQ UHKHDUVH¶VRWWR YRFH ZLWKRXW DQ\ HORTXHQFH FDUHIXO QRW WR IRUFH WKH WH[W MXVW VNHWFKLQJ WHPSR DQG UK\WKP ZLWKRXW WU\LQJ WR DFKLHYH DQ\WKLQJ WRR HDUO\· 7KH DFWRUV ZRXOG WKHQ OHDUQ WKHLU OLQHV DQG SOXQJH LQWR WKH DFWXDO LQWHUSUHWD WLRQ :KHQ WKH\ VHHPHG WR ORVH WKHLU LQLWLDO JUDVS &RSHDX HQFRXUDJHG KLV DFWRUV WR PDLQWDLQ D SK\VLFDO VHQVH RI LGHQWLW\ ZLWK WKHLUUROHDQGQRWWRZRUU\DERXWWKHHPRWLRQVWKH\ZHUHVXSSRVHG WREHHPERG\LQJ +LVIXQFWLRQZDVWREHWKHDFWRU·V¶JXLGHDQGPDLQ VWD\· +LVPDLQWDVNZDV WR NHHS WKH DFWRU LQ OLQH DQG ZLWKLQ WKH OLPLWV RI KLV SDUW QRWRQO\WRLQGLFDWHWRKLPZKHQKHLVQHDUWKHWUXWK QRW RQO\WRFRUUHFWKLVPLVWDNH EXWDOVRWRXQGHUVWDQGWKHGLIIL FXOWLHVFRQIURQWLQJWKHDFWRUDQGWRVKRZKLPKRZWRVROYH WKRVHGLIILFXOWLHV +LV DWWLWXGH ZDV FRQILGHQWLDO HYHQ FRQIHVVLRQDO 6R LW ZDV WRR ZLWK SURSPDNHUV FRVWXPLHUV DQG WHFKQLFLDQV ² VHHPLQJO\ HYHU\
-$&48(6&23($8
GHWDLORID&RSHDXSURGXFWLRQKDGWRKDYHDGLIILFXOW\ DQGWKDWGLIIL FXOW\KDGWREHUHVROYHGE\KLP ,W ZDV KDUGO\ VXUSULVLQJ WKHUHIRUH WKDW HYHQ DIWHU WKH VHDVRQ WKH WHQVLRQ EHWZHHQ &RSHDX·V LGHDO DQG WKH DFWXDOLW\ RI ZKDWZDVSRVVLEOHEHJDQWRZHDUKLPGRZQ 7KHODVWWZR\HDUVRI WKHZDUKDGVHHQWKHFRPSDQ\LQ1HZ
-$&48(6&23($8
DXWRQRPRXV SLHFH /HV -HXQHV IHQV HW O·DUDLJQpH KH SHUFHLYHG LW QR ORQJHU HPERGLHG KLV LGHDV RU KRZ KH IHOW WKH\ VKRXOG EH SUHVHQWHG /HV&RSLDX[ LQVRPHUHOLHI FKDQJHGWKHLUQDPHWR /D&RPSDJQLHGHV TXLQ]H DQGFDUULHGRQZLWKRXWKLP ,W FDQ EH VDLG WKDW &RSHDX·V WKHDWULFDO TXHVW ZDV QRW RQO\ IRU FRPPXQLRQ EXWDOVRIRU&RPPXQLRQ +HKDGEHFRPHDSUDFWLVLQJ &DWKROLF DJDLQ LQ ,Q ODUJHVFDOH RXWGRRU SURGXFWLRQV RI UHOL JLRXVWH[WV²6DQWD8OLYD 6DYRQDUROD DQG/H0LUDFOHGX SDLQ GRUp ² DQG KLV SOD\ DERXW 6W )UDQFLV RI $VVLVL /H 3HWLW SDXYUH QHYHUSHUIRUPHGLQKLVOLIHWLPH KHZDVDEOHWRFUHDWHWKHDWUH RI )DLWK HYHQ WKRXJK KH QR ORQJHU KDG PXFK IDLWK LQ WKHDWUH +H SHUFHLYHGWKDWWKHUROHRIGUDPDZDVQRORQJHUWLHGWRWKHSURYLVLRQ RI QLJKWO\ HQWHUWDLQPHQW ² WKDW IXQFWLRQ FRXOG EH OHIW WR WKH QHZ PHGLDRIFLQHPDDQGUDGLR²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
6DLQW'HQLV 0LFKHO 7UDLQLQJ IRU WKH 7KHDWUH 1HZ
)XUWKHUUHDGLQJ 0LJQRQ 3DXO/RXLV -DFTXHV&RSHDX 3DULV -XOOLDUG 5XGOLQ -RKQ -DFTXHV &RSHDX &DPEULGJH &DPEULGJH 8QLYHUVLW\ 3UHVV 5XGOLQ -RKQ DQG 3DXO 1RUPDQ + HGV DQG WUDQV -DFTXHV &RSHDX 7H[WVRQ7KHDWUH /RQGRQ 5RXWOHGJH -2+158'/,1
$/(;$1'(57$,529
$/(;$1'(57$,529 ² 7KHVWDQGDUGLQWHUSUHWDWLRQRIWZHQWLHWKFHQWXU\5XVVLDQWKHDWUHVWLOO FDXWLRXVO\ UHJDUGV $OH[DQGHU 7DLURY DV D PDUJLQDO ILJXUH 7KH IDFW WKDW7DLURYZDVDOLHQWRERWKRIWKHPDLQVWUHDPWUDGLWLRQVRI5XVVLDQ WKHDWUH ² 6WDQLVODYVNLDQ SV\FKRORJLVP DQG WKH PRUH IRUPDO 0H\HUKROGLDQ DSSURDFK ² SURPSWV VFKRODUV WR YLHZ 7DLURY·V DUW DV D SHFXOLDU DQG H[WUDQHRXV RIIVSULQJ 7KH GLUHFWRU·V VLQJXODULW\ WKXV LPSHGHV VROLG REMHFWLYH DSSURDFKHV WR WKH OHJDF\ RI WKH 0RVFRZ .DPHUQ\WKHDWUHZKLFKZDVIRXQGHGE\7DLURYLQ DQGZDV IRU WKH QH[W WKLUW\ILYH \HDUV UHFRJQLVHG DV D PDMRU IRUFH LQ 5XVVLDQ WKHDWUH 7KH.DPHUQ\ZDVFORVHGIRUDOOHJHGFRVPRSROLWDQLVPGXULQJ RQHRIWKHODVW6WDOLQLVWFDPSDLJQV DUXWKOHVVPRYHZKLFKFRQILUPHG KRZDOLHQWKHGLUHFWRU·VIRUPDODHVWKHWLFVZHUHWRRIILFLDOO\DSSURYHG VRFLDOLVWUHDOLVP 7DLURY·V FRQWULEXWLRQ PLJKW EH YLHZHG LQ WHUPV RI IRXU LQWHUUH ODWHG FRQFHSWV WKDW FRPSULVHG WKH GLUHFWRU·V DHVWKHWLFV DHVWKHWLF WKHDWUH V\QWKHWLF SURGXFWLRQ WKH PDVWHU DFWRU DQG UK\WKP $OO IRXU DVSHFWVKDGGHHSURRWVLQWKHPRGHUQLVWFXOWXUHRIWKH5XVVLDQ6LOYHU $JH ² )URPWKLVZKLUOSRRORILGHDV LQQRYDWLRQVDQGDVSLUD WLRQVWZRPDMRUSKLORVRSKLFDOLQIOXHQFHVPXVWEHQRWHG²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·V VWDJH LQ HYHU PXWDWLQJ SDWWHUQV RI OLJKW FRORXU PRYHPHQWV DQG G\QDPLF GHVLJQV DV LI WKH GLUHFWRU FRPSOLHG ZLWK .D]LPLU 0DOHYLFK·V LGHD WKDW RQH VKRXOG ¶PDNH YLVXDO EHDXW\ VHOIVXIILFLHQW« :K\ PD\ QRW EHDXW\ H[LVW LQ QRQFRPSUHKHQVLEOH IRUPV"· %HDXW\ DV D IHPDOH SUHVHQFH PDQLIHVWHGLWVHOILQWKHWUDJLFLPDJHFUHDWHGE\$OLVD.RRQHQ 7DLURY·V OHDGLQJODG\DQGDJUHDW5XVVLDQWUDJHGLHQQH 7KLVSHUVRQLILFDWLRQRI %HDXW\ZDVFRXUDJHRXVHQRXJKWRPHHWDQLQIHULRUDQGKRVWLOHZRUOG IDFHWRIDFH²GHVSLWHKHULPSHQGLQJGRRP 7KHFHQWULSHWDOPLVHHQ VFqQH LQ ZKLFK .RRQHQ VWRRG ZLOIXOO\ FHQWUHVWDJH ² WRZHULQJ RYHU WKH ZRUOG GHWDFKHG IURP HYHU\GD\ OLIH DQG LPPHUVHG LQ WKH WUDJLF VXEOLPH ² WXUQHG RXW WR EH HPEOHPDWLF RI WKH ZKROH RI 7DLURY·V
$/(;$1'(57$,529
±XYUH $V WKH UDYLQJ ZRUOG WULHG WR GHVWUR\ KHU VKH ZDV ERWK JUDQGLRVHDQGIUDJLOH DUURJDQWDQGKHOSOHVV $OWKRXJK EHDXWLIXO DQG HQFKDQWLQJ 7DLURY·V SURGXFWLRQV RIWHQ LJQRUHG HYHU\WKLQJ WKDW VHHPHG WR KLP WRR WULYLDOO\ KXPDQ WR EH LQWHUHVWLQJ 7KH HYHU\GD\ FKDUPV RI GRPHVWLF OLIH ZHUH OHIW WR WKH 0RVFRZ $UW 7KHDWUH WR GHVFULEH 6SLULW UDWKHU WKDQ DPLW\ SUHYDLOHG RQ 7DLURY·V VWDJH 7DLURY·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¶WKHWKHDWULFDO LVDWLRQRI7KHDWUH· 7KHREMHFWLYHZDVWRV\QWKHVLVHWKHHOHPHQWVRI VSHDNLQJ VLQJLQJ GDQFLQJ SDQWRPLPHDQGFLUFXVZLWKLQDQHZW\SH RIVWDJHSURGXFWLRQWKDWZDVQRWGUDPD RSHUD EDOOHWRUSDQWRPLPH EXW ZDV UHODWHG LQVWHDG WR WKH V\QFUHWLF WKHDWUH RI $QFLHQW *UHHFH 7DLURY·VWKHDWUHDWLWVEHVW²LQFOXGLQJVXFKVKRZVDV3ULQFHVV%UDPELOOD 3KqGUH DQG *LURIOp*LURIOD 'HVLUH XQGHU WKH (OPV DQG 'D\ DQG 1LJKW 7KH 1HJUR 7KH %HJJDUV· 2SHUD DQG$Q2SWLPLVWLF7UDJHG\ ²QHYHUZDV DQGZDVQHYHUPHDQWWR EH DSXUHO\GUDPDWLFWKHDWUH 6\QWKHVLV LQ DFWLQJ HQWDLOHG WKH SUREOHP RI JHQUHV 7KH IDFW WKDW WKH HOHPHQWV RI VLQJLQJ VSHDNLQJ DQG GDQFLQJ KDG WR EH EOHQGHG WRJHWKHUQRWRQO\QHFHVVLWDWHGPRUHXQLYHUVDOFRQWHQWEXWDOVR PDGH LW LPSRVVLEOH IRU 7DLURY WR SXW RQ SV\FKRORJLFDO UHDOLVWLF DQG GRFX PHQWDU\ GUDPD 7DLURY FDPH WR LGHQWLI\ WZR VWUXFWXUHV FDSDEOH RI DFFRPPRGDWLQJ VXFK FUHDWLRQV ² QDPHO\ WUDJHG\P\VWHU\ DQG FRPHG\KDUOHTXLQDGH %RWK JHQUHV ZHUH VXLWDEOH IRU 7DLURY·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·V¶7KH %LUWK RI 7UDJHG\ )URP WKH 6SLULW RI 0XVLF· 7KH $SROORQLDQ'LRQ\VLDQ GLFKRWRP\
$/(;$1'(57$,529
DQG WKH LGHD RI PXVLF DV DQ DUW IRUP NLQGUHG WR WKHDWUH EHFDPH VHPLQDO WR 7DLURY·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²WKH$SROORQLDQSULQFLSOH RIRUGHUDQGFODULW\ 7UDJHG\PRYHGIRUZDUGDUPRXUHGLQULWXDODQG KDUOHTXLQDGHUROOHGRQDVDFDOFXODWHGFRXQWHUPHFKDQLVP 7KHFRQFHSWRIDV\QWKHWLFSURGXFWLRQEURXJKWIRUZDUGWKHWKLUG PDMRU FRPSRQHQW RI 7DLURY·V DHVWKHWLFV QDPHO\ WKH PDVWHU DFWRU ,QGHHG DVWKHXVXDOO\VHSDUDWHHOHPHQWVRIVSHDNLQJ VLQJLQJ GDQFLQJ DQG SDQWRPLPH QRZ FRQVWLWXWHG D XQLILHG PHDQV RI H[SUHVVLRQ IRU WKH DFWRU RQO\ DQ DFWRUYLUWXRVR ZDV DEOH WR UHDOLVH WKHLU XQLRQ RQ VWDJH +HQFH 7DLURY SODFHG JUHDW HPSKDVLV RQ WKH DFWRU·V FUDIWVPDQ VKLS RQ WKH YHUVDWLOLW\ ZLWK ZKLFK WKH DFWRU·V ERG\ DQG YRLFH ZHUH XVHG ,QWKHDFWLQJVFKRROKHIRXQGHGDVSDUWRIWKH.DPHUQ\WKHDWUH 7DLURYHTXLSSHGSK\VLFDOO\ILWDQGGLVFLSOLQHGDFWRUVZLWKDFRPSOHWH FRPPDQG RI SODVWLFLW\ DQG UK\WKPLF H[SUHVVLRQ 9RLFH VNLOOV VXFK DV SRHWLFGHFODPDWLRQDQGVLQJLQJZHUHUHTXLUHGDVZHOO 7KHGLUHFWRU·V SURQRXQFHPHQWDERXWDQDFWRUEHLQJ¶WKHVROHDQGVRYHUHLJQEHDUHU RIWKHWKHDWUHDUW· 7DLURY ZDVQHLWKHUDWUXLVPQRUDILJXUH RIVSHHFK 7DLURYHQFRXUDJHGKLVDFWRUVWRGHPRQVWUDWHWKHLUVNLOOV IRU KLP WKH HVVHQFH RI WKH WKHDWULFDO DFW KDG QRWKLQJ WR GR ZLWK WKH WUDQVIRUPDWLRQ RI VHOI LQWR WKH FKDUDFWHU 7KH FKDUDFWHU·V ILFWLRQDO VWDJH H[LVWHQFH GLG QRW VXSHUVHGH WKH UHDO SURFHVV RI WKH DFWRU·V YLUWXRVR IODPER\DQFH 'XULQJ UHKHDUVDOV WKH PHPEHUV RI WKH .DPHUQ\ FRPSDQ\ QHYHU LGHQWLILHG WKHPVHOYHV ZLWK WKHLU SDUWV ¶KH·¶VKH· UDWKHUWKDQ¶,· ZDVWKHSURQRXQXVHGWRGHQRWHFKDUDFWHU ,Q WKLV UHVSHFW 7DLURY·V DFWRUV ZHUH VLPLODU WR FRPPHGLD GHOO·DUWH SHUIRUPHUV ZLWK WKHLU MR\IXO VRXOV DQG MXELODQW VSLULW 7KH DFWRU RQ WKH VWDJH SHUVRQLILHG IRU 7DLURY D SDUDJRQ RI D KXPDQ EHLQJ IXOO\ FRQVXPPDWHGLQWKHSURFHVVRIFUHDWLYHVHOIUHDOLVDWLRQ :KLOH WKH DFWRUV FUHDWHG SHUIRUPDQFHV ZLWKRXW HYHU ORVLQJ D FRQVFLRXVDZDUHQHVVRIWKHDFWRIFUHDWLRQ WKHDXGLHQFHZDVFDVWDVD SDVVLYH UHFLSLHQW LQ 7DLURY·V WKHDWUH 6SHFWDWRUV ZHUH VXSSRVHG WR DGPLUH D UHDG\PDGH WKHDWULFDO SURGXFW UDWKHU WKDQ DFWLYHO\ PDNH
$/(;$1'(57$,529
FRQQHFWLRQVXVLQJWKHLURZQH[SHULHQFHDQGLPDJLQDWLRQ 7KHVSHF WDWRU·VH[SHULHQFHZDVOLPLWHGWRIRUPDODHVWKHWLFSOHDVXUH WKHUHZDV QR TXHVWLRQ RI HPRWLRQDO LGHQWLILFDWLRQ ZLWK WKH VWRU\OLQH 7KH SOHDVXUHWKHDXGLHQFHJRWIURPDSHUIRUPDQFHZDV LQ7DLURY·VYLHZ D IXQFWLRQ RI WKH IRUPDO FRPELQDWLRQV RI WKH GLIIHUHQW UK\WKPV KH HPSOR\HGRQVWDJH 5K\WKP ZDV WKH IRXUWK PDMRU FRPSRQHQW RI 7DLURY·V DHVWKHWLFV DQG DOZD\V UHPDLQHG WKH IRXQGDWLRQ RI KLV H[SORUDWLRQV )ROORZLQJ 1LHW]VFKH 7DLURY EHOLHYHG WKDW ¶PXVLF LV WKH FORVHVW WR WKH DUW RI WKHDWUH· LELG +H VRXJKW D EDVLF WKHDWULFDO SULQFLSOH WKDW ZDV VLPLODU WR D PXVLFDO RQH +H VWURYH WR XQYHLO WKH VHFUHW PXVLF RI D SOD\ KLGGHQEHQHDWKLWVSORWDQGWRSLFDOPHVVDJH 5K\WKPEHFDPH D IXQGDPHQWDOVWUXFWXUDOSULQFLSOHIRUWKHGLUHFWRU·VFRPSRVLWLRQV 7KH DUFKLWHFWXUDO IRUPV RI D VWDJH VHW ² ZKHWKHU WKH\ ZHUH UHQGHUHG DV FXELVWRUFRQVWUXFWLYLVW²ZHUHWRUHYHDOYLVXDOUK\WKPV 'DUNOLQHVRI VWDJH PDNHXS ZHUH WR RXWOLQH WKH UK\WKPV RI ERGLHV DQG IDFHV &RVWXPHV KHOSHG WR UHYHDO WKH SDWWHUQV RI WKH DFWRUV· PRYHPHQWV 7KH HYHUFKDQJLQJ UK\WKPV RI OLJKWV FRORXUV DQG PRYLQJ VFUHHQV KDUPRQLVHGZLWKWKHUK\WKPVRIVSHHFK DGGLQJWRWKHH[SUHVVLYHQHVV RIWKHGLUHFWRU·VWKHDWULFDOFRPSRVLWLRQ 7DLURY·VEHVWSURGXFWLRQVZHUHEDOOHWLFLQQDWXUH ,Q (UZLQ 3LVFDWRU UHFDOOLQJ KLV LPSUHVVLRQV RI WKH 5XVVLDQ DYDQWJDUGH WKHDWUH ZURWHRIDVSHFLILF¶7DLURY· HOHPHQWWKDWH[SUHVVHGLWVHOILQD ¶SDUWLFXODU YLUWXRVLW\ « DQG LQWHJUDWLRQ RI DOO >SURGXFWLRQ HOHPHQWV@LQWRPRYHPHQWDQGIRUP· 3LVFDWRUVXJJHVWHGVRPHWKLQJ RIDYLVXDOJHVWDOW ²DPDJQLILFHQWFROOHFWLYHHIIRUWLQZKLFKWKHLQWH JUDWLRQRIHOHPHQWVZDVDWWDLQHGE\VWUXFWXULQJHYHU\WKLQJRQVWDJH WR WKH SULQFLSOH RI D YLVXDO UK\WKP 7KH JHVWXUHV PRYHPHQWV DQG UHORFDWLRQV LQ VSDFH ² OLNH D JUDQGLRVH G\QDPLF SDLQWLQJ WKDW ZDV H[HFXWHG E\ WKH DFWRUV· ERGLHV ² VHHP WR KDYH LPSUHVVHG 7DLURY·V FRQWHPSRUDULHV PRUH WKDQ DQ\ XQIROGLQJ VWRU\OLQH 6XSSRUWHG E\ OLJKW DQG FRORXU WKHVH FRQIOLFWV RI SXUH PRYHPHQW ² DVFHQGLQJ YHUVXV GHVFHQGLQJ GLDJRQDO YHUVXV KRUL]RQWDO FHQWULSHWDO YHUVXV FHQWULIXJDO ² UHQGHUHG VWDJH DFWLRQ LQ D ODUJHUWKDQOLIH QRQ SV\FKRORJLFDO ZD\ 7KH\ ZHUH QRW FRPSOHWHO\ GHYRLG RI KXPDQ HPRWLRQV KRZHYHU DV$QGUHL/HYLQVRQSRLQWHGRXW 7DLURY¶GLVFRY HUHG DQ HQWLUH LQYHQWRU\ RI LQGLVSHQVDEOH HVVHQWLDO DQG SHUIHFW JHVWXUHV SRVHV DQGJURXSVFDSDEOHRIH[SUHVVLQJWKHPRVWGHHSDQG SULPDOKXPDQIHHOLQJV· 1RWHV
0DOHYLFK . ¶7HDWU !· (NVSHULPHQW
(5:,13,6&$725
7DLURY $ =DSLVNL UH]KLVVHUD 6WDW·L %HVHG\ 5HFKL 3LV·PD 0RVNYD 972 3LVFDWRU ( ¶'HXWVFKH XQG 5XVVLVFKH 7KHDWHU *HVSUDFK PLW * 6HPPHU · SKRWRFRSLHGGRFXPHQWLQWKH3LVFDWRU$UFKLYH LQ WKH $NDGHPLH GHU .XQVWH %HUOLQ FLWHG LQ .RO\D]LQ 9ODGLPLU 7DLURY 0H\HUKROG L *HUPDQL\D 3LVNDWRU %UHNKW L 5RVVL\D 0RVNYD *,7,6 5XGQLWVN\ . ¶6WUXNWXUQ\L UHDOLVP $OHNVDQGUD 7DLURYD ²H JRG\ · LQ0LULVNXVVWY $O·PDQDNK 0RVNYD 5,.¶.XO·WXUD·
)XUWKHUUHDGLQJ 7DLURY $ 1RWHVRID'LUHFWRU WUDQV : .XKONHDQG& *DEOHV 0LDPL 8QLYHUVLW\RI0LDPL3UHVV '$6+$.5,-$16.$,$
(5:,13,6&$725 ² (UZLQ3LVFDWRUZDVDQXQOLNHO\UHYROXWLRQDU\ ,QWKHVXPPHURI KH ZDV D VWXGHQW RI SKLORVRSK\ DQG WKHDWUH KLVWRU\ DW 0XQLFK +H ZDV QRW WHUULEO\ LQWHUHVWHG LQ SROLWLFV DQG KLV RQO\ SUDFWLFDO H[SHUL HQFH RI WKH WKHDWUH ZDV WKDW RI DQ DPDWHXU 7KH )LUVW :RUOG :DU FKDQJHGDOOWKDW 0\FDOHQGDUEHJLQVRQ$XJXVW « PLOOLRQGHDG PLOOLRQPDLPHG«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·VH[SHULHQFHRIWKH)URQWZDVWKDWLW PDGHWKHDWUH²DQGDUWLQJHQHUDO²VHHPGHFDGHQW DOX[XU\WKDWWKH
(5:,13,6&$725
WLPHVFRXOGLOODIIRUG $VDUHVXOW 3LVFDWRUYLHZHGKLPVHOIOHVVDVDQ DUWLVW WKDQ DV D UHYROXWLRQDU\ ZKR KDSSHQHG WR FKDQFH XSRQ WKH WKHDWUH DV D FRQYHQLHQW YHKLFOH IRU KLV SURSDJDQGD $ FRQVSLFXRXV IHDWXUHRIKLVERRN7KH3ROLWLFDO7KHDWUH LVLWVLPSDWLHQFHZLWKDUWLQ WKHIDFHRIWKHFDOOWRLQVXUUHFWLRQ ¶/HVVDUW PRUHSROLWLFV· LELG LV DQ H[FODPDWLRQ WKDW UXQV WKURXJK WKH ERRN OLNH D UHIUDLQ ¶:H EDQQHG WKH ZRUG DUW UDGLFDOO\ IURP RXU SURJUDP· ZULWHV 3LVFDWRU SURXGO\ ¶RXU ¶¶SOD\V·· ZHUH DSSHDOV DQG ZHUH LQWHQGHG WR KDYH DQ HIIHFWRQFXUUHQWHYHQWV WREHDIRUPRI¶¶SROLWLFDODFWLYLW\·· · LELG 3LVFDWRU·V HDUO\ ZRUN UHIOHFWV WKLV H[FOXVLYH FRQFHUQ ZLWK UHYROX WLRQ DQG DSSDUHQW GLVUHJDUG IRU WKH QLFHWLHV RI DUWLVWLF HQGHDYRXU ,Q 3LVFDWRU VWDUWHG WKH 3UROHWDULVFKHV 7KHDWHU ZLWK D JURXS RI DPDWHXUVZLWKVWURQJFRPPXQLVWFUHGHQWLDOVZKRSXWRQVLPSOHEXW LQIODPPDWRU\ SROLWLFDO VNHWFKHV LQ ZRUNLQJFODVV EDUV 5XVVLD·V 'D\ IRU LQVWDQFH FKDOOHQJHG LWV DXGLHQFH TXLWH XQDPELJXRXVO\ ¶(LWKHU DFWLYH VROLGDULW\ ZLWK 6RYLHW 5XVVLD LQ WKH FRXUVH RI WKH FRPLQJPRQWKV· WKHSURJUDPPHUHDG¶²RULQWHUQDWLRQDO&DSLWDOZLOO VXFFHHG LQ DQQLKLODWLQJ WKH FXVWRGLDQV RI ZRUOG UHYROXWLRQ· 7KH VFULSWZDVDVODFNLQJLQILQHVVH 92,&( 2) 7+( 5866,$1 352/(7$5,$7
3UROHWDULDQV LQWR WKH
VWUXJJOH :25/'&$3,7$/,60 +HOO GHYLO SODJXH 7+(*(50$1:25.(5 6WUXJJOH VWUXJJOH VWUXJJOH 92,&(6)520$//',5(&7,216 6WUXJJOH VWUXJJOH VWUXJJOH
:LOOHWW 3LVFDWRU ZDV QRW LQ WKH OHDVW ELW DSRORJHWLF DERXW WKH XQVXEWOH QDWXUHRIKLVWH[W¶1RWKLQJZDVOHIWXQFOHDU RUDPELJXRXVDQG«WKH FRQQHFWLRQ ZLWK FXUUHQW SROLWLFDO HYHQWV ZDV SRLQWHG RXW DW HYHU\ WXUQ· 3LVFDWRU KH ZULWHV ZLWK VDWLVIDFWLRQ LQ 7KH 3ROLWLFDO 7KHDWUH +LVVORJDQZDV¶6XERUGLQDWLRQRIDOODUWLVWLFDLPVWRWKHUHYR OXWLRQDU\ JRDO· DQG KH PHDQW WR VWDQG E\ LW XQFRPSURPLVLQJO\ $ PRUH FRPSOH[ GUDPD ZRXOG KDYH GLOXWHG KLV SROLWLFDO PHVVDJH DQG IDLOHGWRUHDFKKLVZRUNLQJFODVVDXGLHQFH 7KH XQHDVH ZLWK ZKLFK 3LVFDWRU YLHZHG ¶SOD\V ZKHUH WKH SRQGHURXV VWUXFWXUH DQG SUREOHPV WHPSW \RX WR SV\FKRORJL]H· LELG KDGWKHVDOXWDU\HIIHFWRIDOHUWLQJKLPWRWKHSRWHQWLDOIRU GLUHFW DFWLRQ RIIHUHG E\ DOWHUQDWLYH IRUPV RI WKHDWUH VXFK DV WKRVH SUDFWLVHG E\ 0H\HUKROG LQ 0RVFRZ /LNH 0H\HUKROG 3LVFDWRU EHJDQ WR XVH IOH[LEOH GUDPDWLF VWUXFWXUHV WKDW ZRXOG SHUPLW WKH
(5:,13,6&$725
LQWHUSRVLWLRQ RI PXVLF DQG GDQFH SURMHFWLRQV DQG ILOP FOLSV VWDWLV WLFV DQG FDSWLRQV 7KH 5HG 5HYXH IRU LQVWDQFH D PRQWDJH GHSLFWLQJ WKH WULXPSK RI FRPPXQLVP XVHG HYHU\WKLQJ IURP *HRUJH*URV]FDULFDWXUHVRQVOLGHSURMHFWLRQV WRDFWRUVZKRZRXOG QRW RQO\ SOD\ FKDUDFWHUV VXFK DV /HQLQ DQG 5RVD /X[HPEXUJ EXW ZRXOGDOVRFRPPHQWRQWKHDFWLRQIURPYDULRXVSROLWLFDOO\VHQVLWLYH SRLQWVRIYLHZ 8QOLNH0H\HUKROG KRZHYHU 3LVFDWRUZDVQRWLQWHU HVWHG LQ WKH IRUPDO DVSHFW RI WKHVH WHFKQLTXHV 3LVFDWRU·V FRQFHUQV KDGHQWLUHO\WRGRZLWKLPSHDFKLQJWKHJXLOW\DQGFKDPSLRQLQJWKH YLFWLPV 7KRXVDQGVDUHOHDUQLQJWKLV \RXVKRXOGWRR'R\RXWKLQN LWFRQFHUQVRQO\WKHRWKHUV"1R LWFRQFHUQV\RXWRR7KLVLV W\SLFDORIWKHVRFLHW\LQZKLFK\RXOLYH \RXFDQQRWHVFDSHLW ²KHUHLWLVDJDLQ DQGKHUHDJDLQ ,ELG 3LVFDWRUKDGEHHQFRPPLVVLRQHGWRSURGXFHSOD\VE\WKH*HUPDQ &RPPXQLVW 3DUW\ DQG KH ZRXOG PDNH JRRG KLV DVVLJQPHQW +H ZRXOGSXWWKHHVWDEOLVKPHQWRQWULDODQGSURYHWKHQHHGIRUUHYROX WLRQ EH\RQG D VKDGRZ RI D GRXEW 7KH VWRU\ RI 3LVFDWRU·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¶)LOPFRPPHQWDU\ DFFRPSDQLHVWKH DFWLRQLQWKHPDQQHURIDFKRUXV« ,WOHYHOVFULWLFLVPV PDNHVDFFXVD WLRQV SURYLGHV LPSRUWDQW IDFWV LQGHHG DW WLPHV LW FDUULHV RXW GLUHFW DJLWDWLRQ«· LELG ,Q5DVSXWLQ 3LVFDWRUVWDJHGDGLVFXVVLRQRQWKHILQHUSRLQWV RIPLOLWDU\VWUDWHJ\LQIURQWRIDVFUHHQVKRZLQJJHQXLQHILOPFOLSVRI DPDVVDFUHRQWKH6RPPH &DSWLRQVZHUHXVHGWRVLPLODUHIIHFW VKRWV RI FRUSVHV ZHUH LQWHUFXW ZLWK SURMHFWHG TXRWDWLRQV IURP WKH 7VDU·V OHWWHUV WR KLV ZLIH H[WROOLQJWKHKHDOWK\DQGLQYLJRUDWLQJ OLIH KH ZDV OHDGLQJDVKHDGRIKLVDUP\ $ GLUHFWRU VHHNLQJ WR XVH FRQWUDGLFWLRQ DV D PHDQV RI OLWLJDWLRQ QHHGVDVWDJHWKDWLVERWKFDSDFLRXVDQGIOH[LEOH SURYLGLQJDQXPEHU RI GLIIHUHQW VSDFHV HDFK ZLWK LWV RZQ PHGLXP DQG FRUUHVSRQGLQJ
(5:,13,6&$725
SHUVSHFWLYH ,Q 3LVFDWRUZHOFRPHGWKHRSSRUWXQLW\WRZRUNDW WKH 9|ONHVEXKQH·V 7KHDWHU DP %XORZSODW] DQ HQRUPRXV DUHQD HTXLSSHG ZLWK D F\FORUDPD D UHYROYLQJ VWDJH DQG DGMXVWDEOH URVWUD +RZHYHU QHLWKHU WKLV IDFLOLW\ QRU WKH 7KHDWHU DP 1ROOHQGRUISODW] ZKHUH3LVFDWRUHYHQWXDOO\VHWXSWKH3LVFDWRU%XKQH ZDVWHFKQLFDOO\ DV DGYDQFHG DV WKH WKHDWUH 3LVFDWRU KDG GHVLJQHG EXW ODFNHG WKH IXQGVWRUHDOLVH 7KLVVRFDOOHG7RWDO7KHDWUHZRXOGKDYHKDG¶YDUL DEOH SHUIRUPDQFH DUHDV DQG D VHULHV RI VHYHQWHHQ VOLGH RU FLQHSURMHFWLRQ ERRWKV QLQH DURXQG WKH VLQJOHWLHUHG DXGLWRULXP VHYHQ EHKLQG WKH F\FORUDPD DQG RQH LQ D WXUUHW WKDW FRXOG EH ORZHUHG IURP WKH URRI · :LWKLQ WKH OHVV H[WUDYDJDQW EXW SHUIHFWO\ VHUYLFHDEOHFRQILQHVRIKLVH[LVWLQJTXDUWHUV 3LVFDWRUXVHGKLVLQJH QXLW\ WR FUHDWH D WKHDWUH HTXDO WR WKH WDVN RI JHQHUDWLQJ WKH PXOWLSOLFLW\RISHUVSHFWLYHKHUHTXLUHG ,IKLVWKHDWUHFRXOGQ·WSK\VL FDOO\ KRXVH WKH PXOWLVWRULHG VWUXFWXUH KH ZDQWHG KH XVHG OLJKWLQJ WRGHVLJQDWHGLIIHUHQWSOD\LQJDUHDV ,I3LVFDWRU·VVWDJHZDVQRWTXLWH DV FRPSOLDQWO\ HODVWLF DV KH ZDQWHG KH GHVLJQHG D FRQYH\HU EHOW WR FDUU\ KLV DFWRUV EHWZHHQ VFHQHV ,I WKH FRQIOLFW EHWZHHQ VFHQHV SOD\HG VLPXOWDQHRXVO\ LQ GLIIHUHQW DUHDV GLG QRW VXIILFLHQWO\ XQPDVN WKH K\SRFULV\ WKDW ZDV 3LVFDWRU·V WDUJHW KH SODQWHG DFWRUV LQ WKH DXGLHQFH ZKR ZRXOG DLU WKHLU RSLQLRQV RQ YDULRXV FRQWHQWLRXV LVVXHVVRDVWRSURYLGHSHUVSHFWLYHRQWKHDFWLRQ 3LVFDWRU·V ILUVW SURGXFWLRQ DW WKH 7KHDWHU DP %XORZSODW] ZDV $OIRQV3DTXHW·V)ODJV 7KHGUDPDZDVSOD\HGRQDUHYROYLQJ VWDJHGLYLGHGE\ZDOOVLQWRVHJPHQWV VRPHRIZKLFKZHUHHTXLSSHG ZLWKPXOWLSOHOHYHOVVRWKDWDFWLRQFRXOGWDNHSODFHVLPXOWDQHRXVO\ DW GLIIHUHQW ORFDWLRQV 6FHQHV DQG IRU LQVWDQFH ZHUH SOD\HG FRQFXUUHQWO\VRWKDWWKHFRXUWURRPYHUGLFWEOHQGHGVHDPOHVVO\LQWR DFHOHEUDWLRQEDQTXHW 7KHMXGJHVDWWHQGHGWKHUHFHSWLRQE\VKHG GLQJWKHLUUREHVLQIXOOYLHZRIWKHDXGLHQFHWRUHYHDOWKHZKLWHWLHV DQG WDLOV WKH\ KDG RQ XQGHUQHDWK DOO DORQJ ² WKHUHE\ PDNLQJ WKH SRLQW DERXW WKH FRPSOLFLW\ EHWZHHQ WKH ERXUJHRLVLH DQG WKH ODZ 7KH DFWLRQ ZDV KHPPHG LQ E\ WZR ODUJH VFUHHQV RQ ZKLFK ZHUH SURMHFWHGWKHWLWOHVRIVFHQHV SKRWRJUDSKVRIWKHYDULRXVFKDUDFWHUV DQG D FULWLFDO FRPPHQWDU\ RQ WKH DFWLRQ )RU LQVWDQFH D VFHQH LQYROYLQJDQXQMXVWFRQYLFWLRQZDVSOD\HGLQIURQWRIDFDSWLRQWKDW UHDG¶7KH SROLFH WKUHZ WKH ERPEV WKHPVHOYHV· )ODJV ZDV WKH ILUVW SURGXFWLRQWRXVHSURMHFWHGFDSWLRQVLQWKLVZD\ 3LVFDWRU·V ILUVW SOD\ DW WKH 3LVFDWRU%XKQH DW WKH 7KHDWHU DP 1ROOHQGRUISODW] ZDV 7ROOHU·V +RSSOD 6XFK LV /LIH +XJK 5RUULVRQGHVFULEHVWKHVHWIRUWKHSURGXFWLRQ
(5:,13,6&$725
$ VFDIIROGLQJ IHHW KLJK IHHW ZLGH DQG IHHW GHHS ZDVEXLOWRQUDLOVRQWKHUHYROYLQJVWDJH ,WZDVGLYLGHGYHUWL FDOO\LQWRWKUHHVHFWLRQV WKHRXWHURQHVKDYLQJWKUHHFXELFOHV RQHDERYHWKHRWKHU ZKLOHWKHFHQWUHRQHZDVDQLQGLYLGXDO VKDIWVXUPRXQWHGE\DGRPH ([WHUQDOVWDLUVDWWKHVLGHVDQG EDFNDIIRUGHGHQWUDQFHVDWHDFKOHYHO $VFUHHQIHHWE\ IHHWFRXOGEHORZHUHGLQIURQWIRUILOPDQGEODFNDQGZKLWH JDX]HVIRUSURMHFWLRQV« ,ELG 7KH GUDPD EHJDQ ZLWK D VHTXHQFH RI ILOP GHSLFWLQJ WKH ZDU )LOP ZDV XVHG DJDLQ WR VKRZ WKH SDVVDJH RI WLPH ZLWK FOLSV GHSLFWLQJ D VHULHV RI KLVWRULFDO HYHQWV VXFK DV WKH XSULVLQJ LQ WKH 6RYLHW 8QLRQ DQG WKH DGYHQW RI 0XVVROLQL LQ ,WDO\ 7KH VWDJH DFWLRQ ZDV LQWHU VSHUVHG ZLWK VRQJV DQG VSRWOLJKWV ZHUH XVHG WR SLFN RXW DFWLRQ LQ HDFKRIWKHFXELFOHVLQWKHVFDIIROGLQJ ,QRQHVFHQHGDQFHZDV XVHG WR EL]DUUH HIIHFW DV D JURXS RI VNHOHWRQV EDWKHG LQ SXUSOH OLJKW SHUIRUPHGWKH&KDUOHVWRQ $OWKRXJKWKHSURGXFWLRQUHFHLYHGHQWKX VLDVWLF QRWLFHV 3LVFDWRU ZDV XSVHW DERXW WKH IDFW WKDW WKH FULWLFV KDG FKRVHQWRHPSKDVLVHWKHDUWLVWLFH[FHOOHQFHRIWKHSURGXFWLRQDWWKH FRVW RI LWV SROLWLFDO PHVVDJH $ GHFDGH LQWR KLV SROLWLFDO FUXVDGH 3LVFDWRUKDGQRWOHWKLVJURZLQJFHOHEULW\FORXGWKHXOWLPDWHO\UHYR OXWLRQDU\QDWXUHRIKLVSURMHFW 3URGXFWLRQV VXFK DV )ODJV DQG +RSSOD FUHDWHG D SUREOHP IRU 3LVFDWRU·V DFWRUV LQ DGGLWLRQ WR SUHVHQWLQJ WKHLU FKDUDFWHUV WKH\ KDG WR¶FODULI\ WKH KLVWRULFRHFRQRPLF FRQQHFWLRQV· :LOOHWW RIWHQE\VWHSSLQJRXWRIFKDUDFWHUDQGPLQJOLQJZLWKWKHVSHFWDWRUV RUOHFWXULQJWKHPRQWKHUHOHYDQFHRIWKHGUDPDWRWKHFXUUHQWSROLW LFDO VLWXDWLRQ $OWKRXJK 3LVFDWRU LQWHUPLWWHQWO\ UDQ D VWXGLR WKDW FRDFKHGKLVDFWRUV KHQHYHUV\VWHPDWLFDOO\DGGUHVVHGWKLVDVSHFWRIKLV DUW $V 3LVFDWRU·V VHOIFRQIHVVHG¶DLP ZDV WR IRUJHW DERXW¶¶$UW·· DQG EXLOG DQ HQVHPEOH RQ WKH EDVLV RI FRPPRQ UHYROXWLRQDU\ FRQYLF WLRQV· LELG LWVHHPHGWRKLPPRUHLPSRUWDQWWRLQGRFWULQDWHKLV DFWRUV WKDQ WR DGGUHVV WKH LVVXH RI WKH DFWRU·V WHFKQLTXH ¶6LQFH RXU YLHZ RI WKH ZRUOG LV DFWLYLVWLF RXU DFWRUV PXVW EH HGXFDWHG LQ DFWLYLVP« 3ROLWLFDODQGOLWHUDU\OHFWXUHVZLOOEHDUUDQJHGWRDFTXDLQW PHPEHUVZLWKWKHSROLWLFDOFRQFHSWDQGWKHOLWHUDU\PDWHULDORIRXU WKHDWHU· 3LVFDWRU ² ,W ZDV OHIW WR %UHFKW WR HYROYH D PHWKRGLFDODSSURDFKWRWUDLQLQJDFWRUVLQQRQQDWXUDOLVWLFDFWLQJ (QWKXVLDVWLFDV3LVFDWRUZDVZLWKUHJDUGWRWKHPHFKDQLFDODVSHFWV RIWKHDWUHSURGXFWLRQ WKHVHZHUHKXJHO\H[SHQVLYHWRPDLQWDLQ 7KH
(5:,13,6&$725
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² DQG ODWHU DV WKH ,QWHQGDQWRIWKH7KHDWHUGHU)UHLHQ9|ONVEXKQH²KLVJUHDWHVWZRUN ZDVEHKLQGKLP $IWHUDUXQRISRRUUHYLHZV3LVFDWRUUHVROYHG LQD GLDU\HQWU\RI0D\ WR JHWFOHDULQP\RZQPLQG :KHWKHUP\WDOHQWDVVXFKKDVGHFOLQHG« :KHWKHULWLVWKHDXGLHQFHWKDWKDVFKDQJHG« :LOOHWW :KDWKDGKDSSHQHGRIFRXUVHZDVWKDWWLPHVKDGFKDQJHG 3LVFDWRU ZDV D UHYROXWLRQDU\ ZLWKRXW D UHYROXWLRQ $V KH DFNQRZOHGJHG ELWWHUO\ ¶H[LVWHQWLDOLVWV GHJHQHUDWHV DQG WKRVH ZKR KDYH JLYHQ XS KRSH· LELG KDG WDNHQ RYHU (XURSH ZDV HQWHULQJ WKH DJH RI %HFNHWWDQG,RQHVFR 1RWHV
%UDXQ ( 7KH'LUHFWRUDQGWKH6WDJH /RQGRQ 0HWKXHQ ,ELG ,ELG
$1721,1$57$8'
)XUWKHUUHDGLQJ 3LVFDWRU ( 7KH3ROLWLFDO7KHDWUH WUDQV +XJK5RUULVRQ /RQGRQ (\UH 0HWKXHQ :LOOHWW - 7KH7KHDWUHRI(UZLQ3LVFDWRU /RQGRQ 0HWKXHQ 6+20,70,77(5
$1721,1$57$8' ² ,Q WKH )UHQFK DFWRU GLUHFWRU SOD\ZULJKW DQG HVVD\LVW $QWRQLQ $UWDXGZDVGHFODUHGLQVDQH $QHDUO\PHPEHURIWKHVXUUHDOLVWPRYH PHQW LQ 3DULV DQG D PDMRU LQIOXHQFH RQ DYDQWJDUGH (XURSHDQ WKHDWUH KH ZDV FRQILQHG WR DQ DV\OXP IRU WKH EHWWHU SDUW RI WKH UHPLQGHURIKLVOLIH $WHOOLQJIHDWXUHRI$UWDXG·VSV\FKRVLVZDVWKHSOHDVXUHKHWRRNLQ EHLQJVLQJOHGRXWIRUSHUVHFXWLRQ :KHWKHULWZDVKLVFRQYLFWLRQWKDW LWZDVKHZKRZDVFUXFLILHGRQ*ROJRWKD RUWKDW7LEHWDQODPDVZHUH ZLOOLQJ KLV GHDWK $UWDXG UDUHO\ FHDVHG WR LGHQWLI\ ZLWK WKH JUHDW PDUW\UVRIUHOLJLRXVKLVWRU\ /LNHWKHP $UWDXGVDZKLPVHOIDVWKHVROH EDVWLRQ RI WUXWK KROGLQJ RXW SURXGO\ DJDLQVW WKH XQUHPLWWLQJ RQVODXJKWRILQDXWKHQWLFLW\ $QG ZKDW LV DQ DXWKHQWLF PDGPDQ" ,W LV D PDQ ZKR KDV SUHIHUUHG WR JR PDG « UDWKHU WKDQ EH IDOVH WR D FHUWDLQ VXSHULRU LGHD RI KXPDQ KRQRXU« >$@ PDGPDQ LV DOVR D PDQ WR ZKRP VRFLHW\ GLG QRW ZDQW WR OLVWHQ DQG ZKRP LW ZDQWHGWRSUHYHQWIURPXWWHULQJXQEHDUDEOHWUXWKV (VVOLQ 0DGQHVV ZDV $UWDXG·V UDLVRQ G·r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
$1721,1$57$8'
VXFKIRUPLGDEOHIHUYRXUWKDWWKH\ZRXOGVHHWKHOLJKWDQGEHIRUHYHU FKDQJHG $VUHDVRQDQGODQJXDJHZHUHSRZHUOHVVWRFKDQJHWKHGHHSO\ HQWUHQFKHGDWWLWXGHVSHRSOHKDGWROLIH WKHDWUHZRXOGHQDEOH$UWDXG WRDWWDFNWKHGHDGQHVVRIKLVVSHFWDWRUVWKURXJKWKHLUVHQVHV +HZRXOG ¶JHWKROGRIPDQ·VDQDWRP\DQGWKURXJKLWKHDO·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¶DIWHUGLQQHUWKHDWUH· LELG RI3DULVLQWKHWKLUWLHVZDVIDU WRR ERXQG WR ODQJXDJH DQG WKH IRLEOHV RI WKH FRQVFLRXV PLQG WR JHQHUDWH WKH SULPHYDO HQHUJLHV $UWDXG KDG LQ PLQG ¶7KH GDPDJH ZURXJKWE\SV\FKRORJLFDOWKHDWUH· $UWDXGZURWHLQ7KH7KHDWUHDQG LWV 'RXEOH ¶«KDV UHQGHUHG XV XQDFFXVWRPHG WR WKH GLUHFW YLROHQW DFWLRQ WKHDWUH PXVW KDYH· LELG ,Q SODFH RI PDLQVWUHDP WUDGL WLRQV VXFK DV WKRVH RI WKH &RPpGLH )UDQoDLVH ZKLFK IRU $UWDXG ZDV¶D VSXULRXV WKHDWUH IDFLOH DQG IDOVH· (VVOLQ $UWDXG FRQFHLYHGRIDWKHDWUHWKDWZRXOGEHULWXDOLVWLFDQGFHUHPRQLDO WKDW ZRXOGDVVDXOWWKHVHQVHVDQGWHDULQWRWKHQHUYHV &ULHV ODPHQWDWLRQV DSSDULWLRQV VXUSULVHV GUDPDWLFYLUWXRVL WLHV«RIDOOVRUWV WKHPDJLFDOEHDXW\RIFRVWXPHVEDVHGRQ FHUWDLQ ULWXDO PRGHOV VSOHQGURXV OLJKWLQJ WKH LQFDQWDWRU\ EHDXW\ RI YRLFHV « PDVNV PDQQHTXLQV VHYHUDO PHWHUV WDOO DQGEUXVTXHFKDQJHVLQOLJKWLQJ« 6HOOLQ 3HUKDSV $UWDXG·V JUHDWHVW DFKLHYHPHQW ZDV WR KDYH KDG WKH FRXUDJH WR IRUJH RXW RI KLV YLVLRQ D SURMHFW IRU WKH WKHDWUH ZKLFK KRZHYHURXWUDJHRXVDQGLPSUDFWLFDO ZDVDWOHDVWWKHEHJLQQLQJRID QHZZD\RIYLHZLQJWKHIXQFWLRQRIWKHDUWVLQRXUOLYHV
$1721,1$57$8'
7KH FRUQHUVWRQH RI $UWDXG·V SURMHFW ZDV KLV FRQYLFWLRQ WKDW WKH WKHDWUHFRXOGH[LVWLQGHSHQGHQWO\RIODQJXDJH 1RQYHUEDOFRPPXQL FDWLRQLQWKHWKHDWUHKDVUHFHQWO\EHFRPHVRPXFKWKHYRJXHWKDWRQH IRUJHWVKRZUDGLFDO$UWDXG·VUHYROWDJDLQVWWKH¶GLFWDWRUVKLSRIZRUGV· $UWDXG ZDVLQKLVWLPH ¶>:@HYLHZWKHDWUHVRPXFKDVMXVW DSK\VLFDOUHIOHFWLRQRIWKHVFULSWWKDWHYHU\WKLQJLQWKHDWUHRXWVLGHWKH VFULSW«DSSHDUVWRXVWREHSDUWRIVWDJLQJ DQGLQIHULRUWRWKHVFULSW· LELG 7KHSUREOHPZLWKWKLV IRU$UWDXG ZDVWZRIROG )LUVW ODQJXDJH LQ KLVRSLQLRQ ZDVMXVWQRWHTXDOWRWKHIRUPLGDEOHWDVNRIGLVWLOOLQJD P\VWHULRXV KLJKHU UHDOLW\ DQG FRPPXQLFDWLQJ LW WR D VFHSWLFDO DQG OLVWOHVVDXGLHQFH :KHQ$UWDXGPDGHKLVQRZIDPRXVGHFODUDWLRQWKDW RQHKDGWR¶VPDVKODQJXDJHLQRUGHUWRWRXFKOLIH· (VVOLQ KH ORFDWHG ZHOOVSULQJV RI WKH KXPDQ FRQGLWLRQ ZHOO RXWVLGH WKH SXUYLHZ RI JUDPPDU DQG YRFDEXODU\ 6HFRQG WKH WKHDWUH KDG DV D QDWXUDO SDUW RI LWV YLVXDO DQG KDUPRQLF VWUXFWXUH SUHFLVHO\ WKRVH HOHPHQWVWKDWJDYHLWDFFHVVWRWKHVHHOXVLYHRUGHUVRIEHLQJ ,IWKHDWUH ZHUHDEOHSURSHUO\WRGHYHORSWKHLGHRJUDSKLFYDOXHRIJHVWXUHV WKH WKHDWUH ZRXOG ORGJH LWV DSSHDO WR WKH VXEFRQVFLRXV GLUHFWO\ WKURXJK WKHERG\ ,I LQVWHDGRIODQJXDJH RQHFRXOGXVHLQFDQWDWLRQDQGKLHU DWLF PRYHPHQW WKHQ WKH REIXVFDWLQJ ILOWHU RI UHDVRQ ZRXOG EH FLUFXPYHQWHGDQGWKHDWUHZRXOGUHDOLVHLWVOLPLWOHVVSRWHQWLDOIRUWUDQ VFHQGHQFH ,Q $UWDXG·V FRQFHSWLRQ WKHDWUH ZRXOG EH PRVW H[SUHVVLYH LI LW ZHUHIUHHGIURPWKHSURVFHQLXPDUFKDQGOHWORRVHLQDODUJHVSDFH VXFKDVDEDUQRUDIDFWRU\ ZKLFKWKHSHUIRUPHUVZRXOGVKDUHZLWK WKHDXGLHQFH 7KHUHZRXOGEHQRVFHQHU\DQGWKHDXGLHQFHZRXOG EH VXUURXQGHG E\ WKH DFWLRQ 7KH DFWRUV ZRXOG DSSHDU VSOHQGLGO\ GUHVVHG DQG ZRXOG SOD\ XSRQ DQFLHQW LQVWUXPHQWV SURGXFLQJ XQHQGXUDEOHVRXQGVWRH[SUHVVWKHLPSDFWRIXQFRQWUROODEOHIRUFHV 7KH OLJKWLQJ ZRXOG EH GHVLJQHG VR DV WR HQJXOI WKH DXGLHQFH¶LQ ZDYHV RULQVKHHWV RUOLNHDYROOH\RIIODPLQJDUURZV· 6HOOLQ ,WLVDQXQIRUWXQDWHFKDUDFWHULVWLFRIHDFKRIWKHVFHQDULRV$UWDXG VNHWFKHG WKDW WKH\ EHDU QR LQGLFDWLRQ RI WKH PDQQHU LQ ZKLFK WKH EUHDWKWDNLQJ VSHFWDFOH WKH\ GHVFULEH FRXOG DFWXDOO\ EH UHDOLVHG RQ VWDJH ,Q$FWRI7KH*KRVW6RQDWD IRUH[DPSOH WKHOLJKWLQJPXVWEH VXFK WKDW¶HYHU\WKLQJ LV GLVWRUWHG DV WKRXJK VHHQ WKURXJK D SULVP· $UWDXG ,Q7KH&RQTXHVWRI0H[LFR 7KHZDOORIWKHVWDJHLVFUDPPHGXQHYHQO\ZLWKKHDGV ZLWK WKURDWV« )O\LQJYHVVHOVFURVVD3DFLILFRISXUSOLVKLQGLJR«
$1721,1$57$8'
7KH VSDFH LV VWDFNHG KLJK ZLWK VZLUOLQJ JHVWXUHV KRUULEOH IDFHV JODULQJH\HV FORVHGILVWV SOXPHV DUPRXU KHDGV EHOOLHV IDOOLQJ OLNH KDLOVWRQHV SHOWLQJ WKH HDUWK ZLWK VXSHUQDWXUDO H[SORVLRQV 6FKXPDFKHU ,WLVKDUGWRLPDJLQHKRZRQHFRXOGSHUVXDGHEHOOLHVWRIDOOOLNHKDLO ² RU LQGHHG KRZ HIIHFWLYH VXFK D FRQWULYDQFH ZRXOG EH HYHQ LI LW ZHUH SRVVLEOH ² EXW WKH PHWDSKRU FHUWDLQO\ FRQYH\V $UWDXG·V SDVVLRQ $UWDXG·V XVH RI PHWDSKRU LV LQ IDFW FRQVLVWHQWO\ SRZHUIXO ZKHQ IRUH[DPSOH KHLQVLVWVWKDWWKHFRORXURIOLJKWXVHGLQDVFHQH VKRXOG EH¶DV FRPSOH[ DQG DV VXEWOH DV DQJXLVK· 6HOOLQ RU ZKHQ KH ZDQWV VRXQGV WR ¶VSODVK RXW ZLGHO\ IRUPLQJ DUFKHV· LELG KHLVH[SUHVVLQJKLPVHOIDVDSRHWZRXOG ¶6LOHQFHFRPHV DQGJRHVLQJXVWV· $UWDXG ZULWHV$UWDXGLQKLVSURGXF WLRQSODQIRU/H&RXSGH7UDIDOJDU DQGWKHGLUHFWLRQKDVQRWUDFHDW DOORIDWHFKQLFDOUHTXLUHPHQW 'HVSLWHKLVFRQWHPSWIRUODQJXDJH LW LV WKH PHWDSKRU WKDW DWWUDFWV $UWDXG PRUH WKDQ WKH VWDJHHIIHFW $UWDXGDUJXHGWKDWWKHDWUHVKRXOGEHWDQJLEOHUDWKHUWKDQFHUHEUDO DQG\HWKLVZRUN IRUDOOLWVYLVFHUDOEUXWDOLW\ WXUQVRXWWREHPRUH DEVWUDFWWKDQPDWHULDO 1RWVXUSULVLQJO\ $UWDXG·VHORTXHQWEXWIDQFLIXOQRWLRQVRIVWDJH FUDIWUHPDLQHGODUJHO\XQUHDOLVHG ,QWKHHDUO\ V$UWDXGDFWHGLQ DQXPEHURISOD\VGLUHFWHGE\'XOOLQ 3LWRHIIDQG.RPLVVDU]KHYVN\ ,Q WKH ODWH V KH EHJDQ WR DFW LQ ILOPV EXW DOVR IRXQGHG WKH 7KpkWUH$OIUHG-DUU\ZLWK5RJHU9LWUDFDQG5REHUW$URQ +HUHKH GLUHFWHG IRXU SURGXFWLRQV QRQH RI ZKLFK FRXOG HYHQ UHPRWHO\ EH VDLG WR HPERG\ KLV LGHDV ,Q WKH VSULQJ RI $UWDXG SURGXFHG 7KH&HQFL ,WZDVKLVILUVWDWWHPSWWRUHDOLVHKLVYLVLRQRIWKHWKHDWUH 7KHSURGXFWLRQZDVVODXJKWHUHGE\WKHFULWLFVDQGKDGWRFORVHDIWHU DVKRUWUXQ )RUDOO$UWDXG·VFRQWHPSWIRUODQJXDJH LWZDVILQDOO\KLV ODQJXDJH WKDW KDG ODVWLQJ DSSHDO ,Q VSLWH RI $UWDXG·V KHDUWIHOW FRQYLFWLRQ WKDW RQO\ VRXQG DQG PRYHPHQW ZRXOG HQFDSVXODWH KLV YLVLRQ KLV WUXHVW PHGLXP ZDV ODQJXDJH ,URQLFDOO\ RI FRXUVH WKH PHVVDJHFDUULHGE\WKDWPHGLXPZDVDUHFLSHIRULWVRZQGHVWUXF WLRQ :KDW$UWDXG·VODQJXDJHSURFODLPVPRVWHIIHFWLYHO\LVWKHQHHG WR EUHDN GRZQ WKH VWUXFWXUHV RI ODQJXDJH DQG UHSODFH WKHP ZLWK QRQYHUEDOFDWDO\VWV )RUDOOKLVDQWLVHPDQWLFUKHWRULF $UWDXG ZDV LQWKHILQDODQDO\VLV KHOSOHVVO\UHOLDQWXSRQODQJXDJHWRFRQYH\KLV YLVLRQ RI D WKHDWUH WKDW ZRXOG H[SDQG EH\RQG WKH FRQILQHV RI WKH YHUEDO
$1721,1$57$8'
7RH[WHQGWKHH[SUHVVLYHSRWHQWLDORIDPHGLXPLVFRPPHQGDEOH LQWKHZRUNRIDQ\DUWLVW 7RFRQFHLYHRIH[WHQGLQJLWZLWKRXWDFWX DOO\ IROORZLQJ WKHRU\ WKURXJK LQWR SUDFWLFH LV OHVV XQDPELJXRXVO\ DGPLUDEOH 6RZKLOHPRVWFULWLFVDFFODLPWKHPDQQHULQZKLFK$UWDXG VXSSRVHGO\ EURNH WKHDWUH·V GHSHQGHQFH RQ ODQJXDJH DQG LQYHQWHG D IUDPHZRUNLQZKLFKDQHZYRFDEXODU\RIVWLPXOLZRXOGRSHUDWH WKH\ DOVRWUHDWKLVIDLOXUHWRSURGXFHHYHQDVLQJOHLQVWDQFHRIWKHDWUHWKDW ZDV WUXH WR KLV FRQFHSWLRQ DV D VHULRXV VKRUWFRPLQJ $QG \HW WKH PRUHRQHUHDGVRI$UWDXG·VZULWLQJV WKHPRUHUHOXFWDQWRQHEHFRPHV WR FRQGHPQ $UWDXG·V LPSODFDEO\ LPSUDFWLFDO VSLULW $UWDXG FOXQJ WR KLV IDLOXUH OLNH D ZLGRZHG PRWKHU WR KHU FKLOG $OWKRXJK KH ZDV XQGRXEWHGO\GHYDVWDWHGE\WKHGHPLVHRI7KH&HQFL WKHUHZDVDVHQVH LQZKLFKVXFFHVVPLJKWKDYHGHVWUR\HGKLPHYHQPRUHFRPSUHKHQ VLYHO\ ,W LV DOPRVW DV LI D WULXPSK ZRXOG LQ $UWDXG·V YLHZ KDYH EHOLWWOHG KLV FRQFHSWLRQ JURXQGHG KLV WUDQVFHQGHQW YLVLRQ E\ VKRZLQJ LW XS DV EHLQJ IHDVLEOH 7KHUH LV D GHHS VHQVH LQ ZKLFK $UWDXGQHHGHGWRIDLOLQRUGHUWRSUHVHUYHKLVVHOIHVWHHP $Q\WKLQJ RWKHUWKDQSHUVRQDOWUDJHG\ZRXOGKDYHUHQGHUHGKLPPRUWDO DSDUW RIWKHZRUOGKHDEKRUUHG ,Q D VHQVH $UWDXG·V ZRUN GLG KDYH D SUDFWLFDO GLPHQVLRQ +H GLG IROORZ KLV LGHDV WKURXJK LQWR SUDFWLFH ² QRW RQ WKH VWDJH EXW IDU PRUHDGPLUDEO\ LQKLVOLIH $UWDXGRQFHUHPDUNHGWKDWKHFRXOGQRW ¶FRQFHLYH DQ\ ZRUN RI DUW DV KDYLQJ D VHSDUDWH H[LVWHQFH IURP OLIH LWVHOI · 6FKXPDFKHU [[LY $QG VR KH PDGH KLV RZQ OLIH KLV PHGLXP DQG EHFDPH KLPVHOI DQ H[DPSOH RI WKH SULQFLSOHV KH HVSRXVHG $UWDXG·VDSSHDOLV ILQDOO\ DIXQFWLRQQRWRIZKDWKHGLGRU ZURWH EXW RI WKH PDQQHU LQ ZKLFK KH OLYHG 7KH PRVW VLJQLILFDQW DVSHFWRI$UWDXG·VOHJDF\LVQRWWKHWKHDWUHWKDWLVQRZSHUIRUPHGLQ KLV QDPH LW LV WKH GHVLUH WR XVH WKHDWUH WR LQFXOFDWH D FDSDFLW\ IRU DXWKHQWLFOLYLQJ )XUWKHUUHDGLQJ $UWDXG $ &ROOHFWHG:RUNV 9RO WUDQV 9LFWRU&RUWL /RQGRQ &DOGHU %R\DUV ³³ 7KH 7KHDWUH DQG LWV 'RXEOH WUDQV 9LFWRU &RUWL /RQGRQ -RKQ &DOGHU (VVOLQ 0 $UWDXG *ODVJRZ )RQWDQD&ROOLQV 6FKXPDFKHU & HG $UWDXGRQ7KHDWUH /RQGRQ 0HWKXHQ 6HOOLQ ( 7KH'UDPDWLF&RQFHSWVRI$QWRQLQ$UWDXG &KLFDJR 8QLYHU VLW\RI&KLFDJR3UHVV 6+20,70,77(5
%(572/7%5(&+7
%(572/7%5(&+7 ² )RU WKH *HUPDQ GUDPDWLVW GLUHFWRU DQG SRHW %HUWROW %UHFKW WKH WKHDWUH ZDV DQ LQVWUXPHQW RI VRFLDO FKDQJH ¶, ZDQWHG WR WDNH WKH SULQFLSOHWKDWLWZDVQRWMXVWDPDWWHURILQWHUSUHWLQJWKHZRUOGEXW RIFKDQJLQJLW DQGDSSO\WKDWWRWKHWKHDWUH· %UHFKW KH ZURWH +LV IRUWKULJKW 0DU[LVP DQG UHYROXWLRQDU\ WKHDWULFDO H[SHUL PHQWVPDGHKLPDYLWDOIRUFHLQ%HUOLQERWKLQWKH VDQGLQWKH V DQG V ZKHUH KH GLUHFWHG IRU WKH PRVW SDUW DW WKH VWDWH VXSSRUWHG %HUOLQHU (QVHPEOH (YHQ LQ EHWZHHQ LQ ZKDW ZDV HVVHQWLDOO\DSHULRGRIH[LOHLQ¶ZHVWHUQ· 6FDQGDQDYLD ² DQG ODWHU WKH 8QLWHG 6WDWHV ² %UHFKW KHOG ILUPO\ WR WKH EHOLHI WKDWDWKHDWUHZKLFKPHUHO\LQWHUSUHWHGWKHZRUOGZDVDOVRRQH WKDW DFFHSWHGWKDWZRUOGXQFULWLFDOO\ :KHQ IRUH[DPSOH D6WDQLVODYVNLDQ DFWRU UHVHDUFKHG WKH¶JLYHQ FLUFXPVWDQFHV· RI D UROH WKHUH ZDV WKH VXJJHVWLRQWKDWWKRVHFLUFXPVWDQFHV EHLQJ¶JLYHQ· ZHUHVRPHKRZQRW VXEMHFWWRFKDQJH :KHQ6WDQLVODYVNLDQDFWRUVVRXJKWWR¶MXVWLI\· WKHLU DFWLRQV WKH\ XQZLWWLQJO\ YLQGLFDWHG WKH VLWXDWLRQV WKH\ ZHUH SUHVHQWLQJ 7KH6\VWHPDFWRU·V¶WKURXJKOLQH· RIPRWLYDWLRQLQDGYHU WHQWO\ JHQHUDWHG WKH LPSUHVVLRQ WKDW WKH WLJKW VHTXHQFH RI HYHQWV SUHVHQWHGZDVLQVRPHZD\LQHYLWDEOH WKDW ¶JLYHQ· D E ZDVERXQGWR IROORZ )RU%UHFKWWKHQDWXUDOLVWLFWKHDWUHPDGHLWVHHP¶QDWXUDO·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¶(SLF WKHDWUH· LQ ZKLFKDGMDFHQWVHJPHQWVRIGUDPDWLFDFWLRQZHUHGHOLEHUDWHO\GLVDV VRFLDWHG RQH IURP DQRWKHU ¶ZLWK DQ HSLF ZRUN DV RSSRVHG WR D GUDPDWLF RQH FDQ DV LW ZHUH WDNH D SDLU RI VFLVVRUV DQG FXW LW LQWR LQGLYLGXDOSLHFHV ZKLFKUHPDLQIXOO\FDSDEOHRIOLIH· LELG 7LJKWO\VWUXFWXUHGQDUUDWLYHVWUXFWXUHVZHUHEURNHQXSE\VRQJV IRU H[DPSOH ZKLFK ZRXOG IUHTXHQWO\ H[KRUW DXGLHQFHV WR TXHVWLRQ ZKDWWKH\ZHUHVHHLQJRQVWDJH 2IWHQSODFDUGVZHUHXVHGEUHDNXS WKH VWRU\OLQH DQG RIIHU D FULWLFDO FRPPHQWDU\ RQ WKH DFWLRQ 7KLV %UHFKW KRSHG ZRXOG GHVWUR\ WKH LOOXVLRQ WKDW WKH FKDUDFWHUV LQ WKH GUDPDZHUHOLYLQJULJLGO\GHWHUPLQHGOLYHV 7KHDXGLHQFHZRXOGQRW
%(572/7%5(&+7
EHVZHSWDZD\E\DVXSSRVHGO\LQHYLWDEOHFKDLQRIFLUFXPVWDQFHV EXW ZRXOG KDYH LQVWHDG WKH RSSRUWXQLW\ WR FRQVLGHU DOWHUQDWLYH FRXUVHV RIDFWLRQ 7KHWHUPIRUWKLVHIIHFWRIHSLFWKHDWUHLV¶DOLHQDWLRQ· $OLHQDWLRQ RFFXUV ZKHQ IDPLOLDU WKLQJV DUH PDGH WR DSSHDU XQIDPLOLDU VR WKDW WKH\PD\EHDQDO\VHGFULWLFDOO\ 7KH$HIIHFWFRQVLVWVLQWXUQLQJWKHREMHFWRIZKLFKRQHLV WR EH PDGH DZDUH « IURP VRPHWKLQJ RUGLQDU\ IDPLOLDU LPPHGLDWHO\ DFFHVVLEOH LQWR VRPHWKLQJ SHFXOLDU VWULNLQJ DQG XQH[SHFWHG« %HIRUH IDPLOLDULW\ FDQ WXUQ LQWR DZDUH QHVVWKHIDPLOLDUPXVWEHVWULSSHGRILWVLQFRQVSLFXRXVQHVV ZHPXVWJLYHXSDVVXPLQJWKDWWKHREMHFWLQTXHVWLRQQHHGV QRH[SODQDWLRQ ,ELG ²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¶DOLHQDWH· WKHVSHFWD WRUVIURPWKHDFWLRQDQGHQFRXUDJHWKHPWRUHH[DPLQHHYHQWVZLWK DYLHZWRILQGLQJDOWHUQDWLYH SRVVLEO\PRUHFRQVWUXFWLYH FRXUVHVRI DFWLRQWKDQWKRVHSRUWUD\HGRQVWDJH ,QRUGHUWRJHQHUDWHDOLHQDWLRQRQWKHVWDJH WKH%UHFKWLDQDFWRU PXVW DOZD\V EH SUHVHQW LQ D GXDO FDSDFLW\ ² DV DFWRU DQG FKDUDFWHU :KHUH 6WDQLVODYVN\ VRXJKW WR EULGJH WKH JXOI EHWZHHQ WKH SHUIRUPHUDQGWKHUROH %UHFKWGHOLEHUDWHO\UHWDLQHGWKHULIWVRDVWR HQVXUHWKDWDQXQVHWWOLQJLQWHUQDOLQFRQVLVWHQF\ZDVSRVVLEOH $ GHILQLWH GLVWDQFH EHWZHHQ WKH DFWRU DQG WKH UROH KDG WR EH EXLOW LQWR WKH PDQQHU RI SOD\LQJ 7KH DFWRU KDG WR EH DEOHWRFULWLFL]H ,QDGGLWLRQWRWKHDFWLRQRIWKHFKDUDFWHU DQRWKHU DFWLRQ KDG WR EH WKHUH VR WKDW VHOHFWLRQ DQG FULWL FLVPZHUHSRVVLEOH
%(572/7%5(&+7
7KHH[DPSOH%UHFKWJLYHVXVLVWKDWRIGLUHFWRUVVKRZLQJWKHLUDFWRUV KRZ WR SOD\ D VFHQH ZKLOH WKH\ FHUWDLQO\ SRUWUD\ WKH FKDUDFWHUV LQ TXHVWLRQ WKH\ DUH DOVR SUHVHQW DV WKHPVHOYHV DV GLUHFWRUV FRPPHQWLQJRQZKDWWKH\DUHGRLQJVRWKDWWKHLUDFWRUVPD\EHWWHU XQGHUVWDQG ZKDW LV UHTXLUHG ,Q %UHFKW·V 6KRUW 2UJDQXP WKHUH LV D GHVFULSWLRQRI&KDUOHV/DXJKWRQSOD\LQJ*DOLOHRLQWKH%HYHUO\+LOOV SURGXFWLRQRI7KH/LIHRI*DOLOHR WKHDFWRUDSSHDUVRQWKHVWDJHLQDGRXEOHUROH DV/DXJKWRQ DQGDV*DOLOHR« /DXJKWRQLVDFWXDOO\WKHUH VWDQGLQJRQWKH VWDJH DQG VKRZLQJ XV ZKDW KH LPDJLQHV *DOLOHR WR KDYH EHHQ« >:@H PDNH KLP VPRNH D FLJDU DQG WKHQ LPDJLQH KLP OD\LQJ LW GRZQ QRZ DQG DJDLQ LQ RUGHU WR VKRZ XV VRPHIXUWKHUFKDUDFWHULVWLFDWWLWXGHRIWKHILJXUHLQWKHSOD\ ,ELG 7KH XVH RI WKH FLJDU LV D VWURNH RI GLUHFWRULDO JHQLXV ,Q VR IDU DV /DXJKWRQLVUHTXLUHGWRSXWWKHFLJDUGRZQHYHU\WLPHKHLPSHU VRQDWHV *DOLOHR WKH FLJDU EHFRPHV DVVRFLDWHG ZLWK WKH DFWRU /DXJKWRQ DQG WKH DEVHQFH RI LW ZLWK WKH FKDUDFWHU *DOLOHR 7KH UHVXOW LV WKH SUHVHQFH RI ERWK DFWRU DQG FKDUDFWHU ²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·V DFWRUV PXVW ILUVW OHDUQ KRZ WR LGHQWLI\ ZLWKWKHLUFKDUDFWHUVDQGRQO\WKHQJRRQHVWHSIXUWKHUDQGEUHDN WKH VSHOO RI WKDW LGHQWLILFDWLRQ 7KLV LV UHIOHFWHG LQ WKH WKUHHVWDJH UHKHDUVDOSURJUDPPH%UHFKWRQFHRXWOLQHGIRUKLVFRPSDQ\ %HIRUH \RX DVVLPLODWH RU ORVH \RXUVHOI LQ \RXU FKDUDFWHU \RX PXVWILUVWEHFRPHDFTXDLQWHGZLWKLW« 7KH VHFRQG SKDVH LV WKDW RI HPSDWK\ WKH VHDUFK IRU WKH FKDU DFWHU·VWUXWKLQWKHVXEMHFWLYHVHQVH«EHFRPLQJRQHZLWKLW« $QG WKHQ WKHUH LV WKH WKLUG SKDVH LQ ZKLFK \RX WU\ WR VHH WKH FKDUDFWHUIURPWKHRXWVLGH IURPWKHVWDQGSRLQWRIVRFLHW\
%(572/7%5(&+7
7KH HDUO\ VWDJHV RI UHKHDUVDO GUDZ KHDYLO\ RQ 6WDQLVODYVN\ &DUO :HEHU UHFDOOV WKDW ¶SDLQWLQJV RU RWKHU SLFWRULDO GRFXPHQWV RI WKH SOD\·VSHULRGZHUHEURXJKWLQWRUHKHDUVDO· LQDQHIIRUWWRVWXG\ZKDW 6WDQLVODYVN\ZRXOGKDYHFDOOHGWKH¶JLYHQFLUFXPVWDQFHV· RIWKH SOD\ 6FHQHV ZHUH ZRUNHG RXW LQ WHUPV RI PRWLYDWLRQ 0RWKHU &RXUDJH IRUH[DPSOH KDVWRWXUQDURXQGWRZDUGV(LOLIEHIRUHVWHSSLQJXSWR WKHVHUJHDQWWROHWKLPGUDZKLVORWLQRUGHUWRIULJKWHQKHUVRQDZD\ IURPWKHZDU 7KXV %UHFKW·VDFWRUVZRXOGLQLWLDOO\XVH6WDQLVODYVNLDQ WHFKQLTXHVLQWKHLUDWWHPSWWR¶EHFRPH· WKHLUFKDUDFWHUV 2QFHWKHVHFKDUDFWHUVZHUHHVWDEOLVKHG KRZHYHU %UHFKW·VDFWRUVKDG WR OHDUQ WR GUDZ EDFN IURP WKHLU UROHV DQG YLHZ WKHLU SDUWV ZLWK SHUVSHFWLYH $W WKLV VWDJH %UHFKW ZRXOG DVN KLV DFWRUV WR VSHDN WKHLU OLQHVLQWKHWKLUGSHUVRQRULQWKHSDVWWHQVHVRWKDWWKH\ZHUHOLWHUDOO\ SODFHG RXWVLGH WKHLU UROHV $FWRUV ZHUH DVNHG WR H[FKDQJH UROHV RU SDURG\RQHDQRWKHU·VLQWHUSUHWDWLRQVWRWKHVDPHHQG $QRWKHUZD\RI GLVORFDWLQJDFWRUVIURPWKHLUUROHVZDVWRKDYHWKHPSOD\DVFHQHHLWKHU LQVORZPRWLRQRUYHU\TXLFNO\ $VWKH¶QDWXUDO· DFWLRQVRIWKHFKDUDFWHU EHFRPH¶XQQDWXUDO·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²WKHLURZQDQGWKDWRIWKHFKDUDFWHU² LQWXUQ²WKXVH[SOLFLWO\HPSKDVLVLQJWKHSURYLVLRQDOQDWXUHRIUHDOLW\ ,Q GRLQJ WKLV %UHFKW ZDV QRW LQWHUHVWHG LQ PHUHO\ XQGHUVFRULQJ WKHIDFWWKDWDSOD\LVMXVWDSOD\ +HZDQWHGWRXVHWKLVDZDUHQHVVWR H[SORUH WKH SRVVLELOLW\ RI VRFLDO FKDQJH 7KH IXQFWLRQ RI WKHDWUH LQ VXFK D VFKHPH ZDV QRW WR FRHUFH WKH DXGLHQFH LQWR DGRSWLQJ D SDUWLFXODU SRLQW RI YLHZ EXW WR XVH DOLHQDWLRQ DV D ZD\ RI HQFRXU DJLQJVSHFWDWRUVWRWKLQNLQWHUPVRIDOWHUQDWLYHV
/((675$6%(5*
:KHQKHDSSHDUVRQVWDJH EHVLGHVZKDWKHLVDFWXDOO\GRLQJ KHZLOODWDOOHVVHQWLDOSRLQWVGLVFRYHU VSHFLI\ LPSO\ZKDWKH LVQRWGRLQJ WKDWLVWRVD\KHZLOODFWLQVXFKDZD\WKDWWKH DOWHUQDWLYH HPHUJHV DV FOHDUO\ DV SRVVLEOH WKDW KLV DFWLQJ DOORZVIRURWKHUSRVVLELOLWLHVWREHLQIHUUHG« 7KHWHFKQLFDO WHUPIRUWKLVSURFHGXUHLV¶IL[LQJWKH¶¶QRW«EXW·· · ,ELG ¶1RW[ EXW\· LVDQH[DPSOHRIDVHQWHQFHVWUXFWXUHWKDWFRPSULVHVDQ DOLHQDWLRQ DQG RIIHUV DQ DOWHUQDWLYH ¶7KH FDU LV QRW UHG EXW EOXH· DOLHQDWHVEOXHDVEHLQJRQO\RQHRIDQXPEHURIFRORXUVDFDUFDQEH $SSOLHG WR WKH VXSSRVHGO\ ULJLGO\ GHWHUPLQHG IDEULF RI SHRSOH·V OLYHV DOLHQDWLRQLVGHVLJQHGWRUHYHDOWKDWWKHUHLVDOZD\VDQ DOWHUQD WLYHWRWKHZD\WKDWWKLQJVDUH 1RWHV
%UHFKW %HUWROW ¶1RWHV RQ 6WDQLVODYVN\· 7XODQH 'UDPD 5HYLHZ ,ELG :HEHU &DUO ¶%UHFKWDV'LUHFWRU· 7KH'UDPD5HYLHZ
)XUWKHUUHDGLQJ %UHFKW % %UHFKWRQ7KHDWUH /RQGRQ 0HWKXHQ )XHJL - %HUWROW %UHFKW &KDRV $FFRUGLQJ WR 3ODQ &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV 9RONHU . %UHFKW $ %LRJUDSK\ WUDQV -RKQ 1RZHOO 1HZ
/((675$6%(5* ² 6WUDVEHUJLVDQRGGFKRLFHIRULQFOXVLRQLQDERRNDERXWJUHDWGLUHF WRUV +H GLUHFWHG YHU\ OLWWOH DQG ZDV QRW FRQVLGHUHG WHUULEO\ DFFRPSOLVKHG ZKHQ KH GLG DSSO\ KLPVHOI WR WKH WDVN $QG \HW 6WUDVEHUJ·VFRQWULEXWLRQWRWKHDUWRIDFWLQJZDVVRSURIRXQGWKDWLWLV LPSRVVLEOHWRH[FOXGHKLP¶$ORQJZLWK6WDQLVODYVN\ DQG%UHFKW KH ZDV RQH RI WKH PDMRU QDPHV LQ WZHQWLHWKFHQWXU\ WKHDWUH· +LUVFK VD\V9LYHFD/LQGIRUVRIDGLUHFWRUZKRZDVDOPRVWVLQJOH KDQGHGO\ UHVSRQVLEOH IRU WKH HYROXWLRQ RI WKH PRVW VXFFHVVIXO DFWRU WUDLQLQJV\VWHPLQKLVWRU\ +HQXUWXUHGWKHWDOHQWVRIDJDOD[\RIVWDUV
/((675$6%(5*
LQFOXGLQJ 0DUORQ %UDQGR -DPHV 'HDQ 3DXO 1HZPDQ $O 3DFLQR 6KHOO\ :LQWHUV 0DULO\Q 0RQURH $QQH %DQFURIW DQG 6WHYH 0F4XHHQ²ERWKDWWKH*URXS7KHDWUHLQ1HZ
/((675$6%(5*
FKRRVH DQ H[SHULHQFH RI \RXU RZQ WKDW LV SDUDOOHO WR D SDUWLFXODUPRPHQWLQDVFHQH« :KHQ.HDQLQ+DPOHW SLFNHGXSWKHVNXOORI
/((675$6%(5*
¶'R\RXZDQWWRPDNHDVRXQG"*RDKHDG UHOD[«· 6RPHZKHUH IURP GHHS LQVLGH WKH DFWRU HPLWV D ORZ VXVWDLQHGJURDQ« +LUVFK ² :KDW LV LQWHUHVWLQJ KHUH LV QRW MXVW WKH DWWHQWLRQ WR GHWDLO EXW WKH PDQQHU LQ ZKLFK 6WUDVEHUJ LV DEOH WR UHDG WKH SULYDWH ODQGVFDSH 0DVWHUVRQLVH[SORULQJDQGLQWHUYHQHDSSURSULDWHO\ ,WZDVWKLVDOPRVW WHOHSDWKLFDELOLW\WRUHDGWKHDFWRU·VPLQGWKDWPDGH6WUDVEHUJVRHDV\ WR WUXVW :LWKRXW WKLV WUXVW DIIHFWLYH PHPRU\ ZRXOG QRW KDYH ZRUNHG 3RZHUIXOHPRWLRQLVVK\ LWHPHUJHVRQO\ZKHQWKHFRDVWLV FOHDU 6WUDVEHUJ·VDFKLHYHPHQWZDVWRKDYHDOZD\VNHSWWKDWFRDVWFOHDU 7UXVWDORQHFDQQRWJXDUDQWHHWKHVXFFHVVRIDQDIIHFWLYHPHPRU\ H[HUFLVH 7KHDFWRUPXVWEULQJWRWKHH[HUFLVHDVSHFWUXPRIKLJKO\ VRSKLVWLFDWHGWHFKQLFDOVNLOOV ,Q6WUDVEHUJ·VZRUNWKHUHZDVWKHUHIRUH DQHODERUDWHSURJUDPPHRIFDUHIXOO\RUFKHVWUDWHGSUHOLPLQDU\ZRUN WKH ILUVW VWDJH RI ZKLFK ZDV WR JHW WKH DFWRUV WR UHOD[ SK\VLFDOO\ 5HOD[DWLRQ IRU6WUDVEHUJ ZDVWKHPRVWIXQGDPHQWDOFRQGLWLRQRIDOO FUHDWLYHZRUN LWZDVVRLPSRUWDQWWKDWKHZRXOGRIWHQWDNHDOO WKH DOORWWHGWLPHLQUHKHDUVDOMXVWWRDFKLHYHDSURSHUO\UHOD[HGVWDWH ¶-XVW UHOD[· KH ZRXOG VD\ ¶,I \RX QHYHU JHW WR WKH H[HUFLVH , GRQ·W FDUH·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«
/((675$6%(5*
RI PDNLQJ ILFWLRQ UHDO ² ZKLFK LV RI FRXUVH WKH DFWRU·V WDVN LQ LWV PRVW JHQHUDO IRUP )RU 6WUDVEHUJ ¶WKDW LV WKH DFWRU·V MRE +H EULQJV QRQH[LVWHQW WKLQJV DOLYH RQ WKH VWDJH +H ILUVW PDNHV WKHP UHDO WR KLPVHOILQRUGHUWRFRQYH\WKDWUHDOLW\WRWKHDXGLHQFH· LELG 7KH H[HUFLVH WKDW PRVW HIIHFWLYHO\ EULGJHV WKH JDS EHWZHHQ WKHVH SUHOLPLQDU\ DWWHPSWV DW PDNLQJ ILFWLRQ UHDO DQG WKH PRUH GLIILFXOW EXVLQHVV RI HYRNLQJ FRPSOH[ HPRWLRQDO PHPRULHV LV 6WUDVEHUJ·V ¶SULYDWH PRPHQW· H[HUFLVH 7KLV UHTXLUHV DFWRUV WR DFW RXW LQWHQVHO\ SULYDWHVLWXDWLRQVLQWKHJODUHRISXEOLFVFUXWLQ\ )RUH[DPSOH DFWUHVVHV PD\JRWKURXJKK\JLHQHULWXDOVWKDWDUHQRUPDOO\SHUIRUPHGRQO\LQ WKHSULYDF\RIDEDWKURRP 7KLVPD\EHHPEDUUDVVLQJEXWLWGRHVRSHQ WKH ZD\ IRU WKHP WR WDNH WKDW IXUWKHU VWHS ZKLFK DIIHFWLYH PHPRU\ ZLOO HYHQWXDOO\ UHTXLUH ² WKH UHYHODWLRQ RI D PRPHQW WKDW LV DFXWHO\ SDLQIXO WKDWFXWVWRWKHKHDUWRIWKHLULQVHFXULW\DVKXPDQEHLQJV WKHSULYDWHPRPHQWH[HUFLVHLVDNLQGRIWKHUDS\ ,WFDQULS WKURXJKWKHDFWRU·VGHIHQFHV UHOHDVHWHQVLRQVWKDWKDYHEXLOW XS RYHU \HDUV DQG KHOS WR IUHH WKH DFWRU SK\VLFDOO\ DQG YRFDOO\ ¶,UHPHPEHUD\RXQJDFWUHVVZKRKDGWURXEOHH[SUHVVLQJ ZKDWVKHIHOW· 6WUDVEHUJUHPLQLVFHV¶6KHEURXJKWLQDSULYDWH PRPHQW ZKHUH VKH ZDV O\LQJ LQ EHG OLVWHQLQJ WR 7XUNLVK PXVLF 6KHVWDUWHGWRGDQFH +RWGDQFLQJ,QDZD\WKDWZDV VWDUWOLQJ )URPWKDWSRLQWRQ KHUYRLFHRQWKHVWDJHVWDUWHG WRFKDQJH VKHKDGPRUHYRFDOFRORXUV DQGZHEHJDQWRJHW DIXOOQHVVRIUHVSRQVH«· +LUVFK 7KH LQWHUHVWLQJ WKLQJ KHUH LV WKH PDQQHU LQ ZKLFK D SV\FKRORJLFDO UHOHDVHWULJJHUVSK\VLFDOFKDQJHVLQWKHERG\WKDW RQHZRXOGWKLQN ZHUHZHOOEH\RQGWKHSXUYLHZRIDWWLWXGHDQGSHUFHSWLRQ 7KHH[HU FLVHHPERGLHVWKHHVVHQFHRI6WUDVEHUJ·VYLHZRIDFWRUWUDLQLQJ RQH WUDLQVWKHYRLFHQRWE\GRLQJYRLFHH[HUFLVHVEXWE\IUHHLQJWKHVHOI $OWKRXJK PXFK RI 6WUDVEHUJ·V ZRUN ZDV FRQGXFWHG RXWVLGH WKH FRQWH[WRISDUWLFXODUUROHVRUVFULSWV KHGLGGLUHFWRQRFFDVLRQDQG QRW ZLWKRXW VXFFHVV +LV SURGXFWLRQ RI 0HQ LQ :KLWH IRU LQVWDQFH LV QRZ ODUJHO\ IRUJRWWHQ EXW ZDV RQFH UHJDUGHG DV¶RQH RI WKHPLOHVWRQHVLQWKH$PHULFDQWKHDWUH· LELG 7KURXJKRXW WKH VXPPHU RI 6WUDVEHUJ GULOOHG KLV DFWRUV OLNH D VHUJHDQW WDNLQJ WKHP WKURXJK H[HUFLVHV DQG LPSURYLVDWLRQVRQKRVSLWDOURXWLQH ,WZDVDKLVWRULFFDVHRI
/((675$6%(5*
GLUHFWRULDORYHUNLOO EXWLWSDLGRII WKHSURGXFWLRQJOHDPHG ZLWK HQVHPEOH JLYHDQGWDNH FUHDWLQJ WKH LOOXVLRQ RI D PLQLDWXUH ZRUOG D EXVWOLQJ PLFURFRVP 7KH FRPLQJV DQG JRLQJV RI SDWLHQWV DQG VWDII ZHUH UHQGHUHG ZLWK H[DFWLQJ GHWDLO DQG ZLWK LQFLGHQWDO QDWXUDO VRXQGV EDFNJURXQG FKDWWHU EHOOV VLUHQV« ,ELG ² $PHPRUDEOHFKDUDFWHULVWLFRIWKHVWDJLQJHPSOR\HGE\6WUDVEHUJ ZDVZKDWLVFDOOHG¶GHHSIRFXV· ²DGHYLFHZKHUHE\WKHDFWLRQLQWKH IRUHJURXQG LV VHW DJDLQVW D FDUHIXOO\ FKRUHRJUDSKHG VHTXHQFH RI PRYHPHQWV XSVWDJH ZKLFK UHDG WRJHWKHU VXJJHVW WKDW WKH DFWLRQ LV SDUWRIDODUJHUUHDOLW\ZKLFKOLYHVRQUHJDUGOHVVRIWKHGUDPD 6WUDVEHUJ·VPHWKRGRIZRUNLQJKDVRYHUWKH\HDUVEHHQVXEMHFWHG WRWZRPDMRUOLQHVRIDWWDFN )LUVW LWKDVEHHQDUJXHGWKDW6WUDVEHUJ PHWKRGV RIWHQ UHGXFHG GUDPDV WR WKH RUELW RI WKH DFWRUV· H[SHUL HQFHV ZKLFK DUH LQHYLWDEO\ PRUH OLPLWHG WKDQ WKRVH RI WKH FKDUDFWHUV WKH\ DUH SOD\LQJ $V 6DEUD -RQHV REVHUYHG ¶7KH WHFK QLTXH LV IDVFLQDWLQJ EXW FDQ GHVWUR\ WKH SOD\ E\ SURPRWLQJ WKH QDUFLVVLVP RI WKH DFWRU DW WKH H[SHQVH RI WKH SOD\ZULJKW« +H·V WKLQNLQJ DERXW KRZ KLV PRWKHU EHWUD\HG KLP DW IRXU LQVWHDG RI SOD\LQJWKHVFHQH· LELG 6HFRQG DFWRUVRIWHQIRXQGLW¶SDLQIXOWRGLJEDFN« /HHFULSSOHG DORWRISHRSOH· LELG +HKDGPHJRLQJRYHUDQGRYHUDSDLQIXOH[SHULHQFH²P\ URRPPDWHKDGEHHQNLOOHGWKH\HDUEHIRUH²XQWLO,WKRXJKW ,ZDVJRLQJWRFUDFN ,ELG 7KHUHZHUHWKRVHIRUZKRP6WUDVEHUJZDVLPSRVVLEO\YLFLRXVDQG WKRVH IRU ZKRP KH ZDV D URFN WKH IRXQGDWLRQ RI DOO WKHLU FUHDWLYH ZRUN LQ WKH WKHDWUH 7KLV SRODULW\ LV LQHYLWDEOH JLYHQ WKH VHQVLWLYLW\ RIWKHPDWHULDO6WUDVEHUJFKRVHWRXVH WKHDFWRU·VLQQHUVHOI :KDWLV LPSRUWDQWLVWKDWWKHYLVLRQKHEURXJKWWRWKHWKHDWUHKDGLPSOLFD WLRQV IRU WKH QRWLRQ RI DXWKHQWLFLW\ JHQHUDOO\ 6WUDVEHUJ·V HIIRUWV WR QDUURZWKHJDSEHWZHHQWKHUHDODQGWKHDIIHFWHGKDGDVLJQLILFDQFH WKDWVWUHWFKHGZHOOEH\RQGWKHWKHDWUH LWEHFDPHDZD\RIEHLQJ )XUWKHUUHDGLQJ +HWKPRQ 5+ HG 6WUDVEHUJ DW WKH $FWRUV 6WXGLR 1HZ
-($19,/$5
+LUVFK ) $0HWKRGWR7KHLU0DGQHVV 7KH+LVWRU\RIWKH$FWRUV6WXGLR 1HZ
-($19,/$5 ² )RXQGHURIWKH$YLJQRQ)HVWLYDOLQ DQGWKH7KpkWUH1DWLRQDO 3RSXODLUH 713 LQ3DULVLQ 9LODU·VPLVVLRQZDVWRFUHDWH QHZ DXGLHQFHV FRPPHQVXUDWH ZLWK KLV LGHD RI ¶SRSXODU WKHDWUH· 7KH WKHDWUH KDG EHHQ D PLGGOHFODVV LQVWLWXWLRQ ,WV QHZ DXGLHQFHV ZHUH WRFRPHQRWRQO\IURPWKHLQGXVWULDOZRUNLQJFODVV EXWIURPDOOWKH FODVVHV ODERULHXVHV FOHULFDO DQG RWKHU VPDOOVFDOH HPSOR\HHV DUWLVDQV DQG VKRSNHHSHUV DQG UXUDO ZRUNHUV DV ZHOO DV WKH WUDGLWLRQDO SHDV DQWU\ 9LODU ,QWKLV 9LODUZHQWDJDLQVWWKH0DU[LVW WKRXJKW WKDW KDG PDGH VXFK D JUHDW LPSDFW RQ )UHQFK DUWLVWV DQG LQWHOOHFWXDOV IURP WKH V WR WKH V YLD %UHFKW +H LQVLVWHG DJDLQVW KLV OHIWZLQJ FULWLFV QRWDEO\ -HDQ3DXO 6DUWUH WKDW VLQFH ¶SRSXODU· GLG QRW VLPSO\ PHDQ¶SUROHWDULDQ· KH ZDV QRW REOLJHG WR SURGXFHDPLOLWDQWWKHDWUHWDLORUHGWRDFDQRQLFDOO\GHILQHGZRUNLQJ FODVV ¶WKHWKHDWUHPXVWEHRSHQWRHYHU\ERG\· LELG ² 9LODU·V WHUPV UHDFWLYDWHG WKH SULQFLSOH RI XQLYHUVDO DFFHVV WR HGXFDWLRQ DQG FXOWXUH WKDW ZDV LQWHJUDO WR WKH SROLWLFV RI QDWLRQDO XQLILFDWLRQ RI WKH 7KLUG 5HSXEOLF ² 7KH\ DOVR OLQNHG KLPWR)LUPLQ*pPLHU ZKRZDVDSSRLQWHGLQ E\WKHJRYHUQ PHQW WR IRUP D SRSXODU WKHDWUH FRPSDQ\ DW WKH 3DODLV GH &KDLOORW WKHYHU\SODFHDVVLJQHGWR9LODUE\DODWHUJRYHUQPHQWIRUKLV713 5HSXEOLFDQLVP ZDV QRW WKH RQO\ LQIOXHQFH RQ 9LODU·V QRWLRQ RI WKH¶SRSXODU· +HZDVGHHSO\DIIHFWHGE\WKH5HVLVWDQFH ZKRVHDLP RI QDWLRQDO OLEHUDWLRQ IURP EHORZ LQVSLUHG WKH JUDVVURRWV DVVRFLD WLRQV 3HXSOH HW &XOWXUH DQG 7UDYDLO HW &XOWXUH IRXQGHG DW WKH HQG RI 7KH ILUVW RI WKHVH ZDV GHYRWHG WR HGXFDWLRQ IRU WKH¶PDVVHV· WKH VHFRQG WR ¶DUW IRU HYHU\ERG\· %RWK VSDZQHG WKH
-($19,/$5
7KHVH DFWLYLWLHV ZHUH SDUW RI WKH GULYH WRZDUGV¶GHFHQWUDOLVDWLRQ·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² DJH EUDFNHW 6FKRROV ZHUH FRQYHUWHG LQWR &HQWUHV ZKLFK SURYLGHG KRXVLQJ DQG PHDOV DW YHU\ UHDVRQDEOH SULFHV SURFXUHG WLFNHWV WR SHUIRUPDQFHV RUJDQLVHG GLVFXVVLRQV DQG GHEDWHV DQG DUUDQJHGH[FXUVLRQVLQWRWKHUHJLRQ 9LODUVXSSRUWHGWKHLUHIIRUWVE\ RUJDQLVLQJ PHHWLQJV WKURXJKRXW WKH )HVWLYDO EHWZHHQ GLUHFWRUV SHUIRUPHUV ZULWHUV DQG WKH SXEOLF ,Q WKLV ZKROH QHWZRUN LV WR EH IRXQG RQH RI 9LODU·V JUHDWHVW DFKLHYHPHQWV WKDW RI PRELOLVLQJ QHZ DXGLHQFHV WR EHFRPH DUWLVWLFDOO\ VHQVLWLYH ZHOOLQIRUPHG DOHUW DQG DUWLFXODWH ² LQGLVSHQVDEOH FULWHULD LQ KLV YLHZ IRU ZKDW VXEVHTXHQW JHQHUDWLRQVZHUHWRGHVFULEHDV¶HPSRZHUPHQW· 8QGHU 9LODU·V GLUHFWLRQ XQWLO KLV GHDWK LQ WKH )HVWLYDO H[SDQGHG LWV KRUL]RQV WR LQFOXGH PXVLF ILOP DQG GDQFH ,W KDG DOVR VXUPRXQWHG WKH ILQDQFLDO GLIILFXOWLHV WKDW KDG SUHYHQWHG 9LODU LQ WKH V IURP GHYHORSLQJ DUWLVWV DQG DXGLHQFHV E\ EULQJLQJ LQQRYDWLYH LQWHUQDWLRQDO FRPSDQLHV WR $YLJQRQ :LWK WKLV JRDO LQ PLQG KH LQYLWHG WKH /LYLQJ 7KHDWUH WR SHUIRUP 3DUDGLVH 1RZ DQG $QWLJRQH DW WKH )HVWLYDO 7KHHYHQWZDVFDXJKWXSLQWKHDIWHUPDWKRI0D\ · ZKHQH[WUHPLVWVFDOOLQJWKHPVHOYHVHQUDJpV GHVFHQGHGRQ$YLJQRQ IURP 3DULV DQG DFFXVHG 9LODU RI FUHDWLQJ D¶VXSHUPDUNHW RI FXOWXUH· %DUGRW ² 7KH/LYLQJ7KHDWUH·V-XOLDQ %HFN MRLQHGWKH IUD\ SLWWLQJKLVRZQEUDQGRIDQDUFKRUDGLFDOLVPDJDLQVW9LODU 7RGD\ WKH )HVWLYDO VWLOO HPERGLHV 9LODU·V LPPHQVH FRQWULEXWLRQ DV DFWRU GLUHFWRU DQG PDQDJHU WR WKH GHEDWH FHQWUDO WR WKH WZHQWLHWK FHQWXU\ RQZKRPDNHVWKHDWUHIRUZKRPLQVRFLHW\ DQGZK\LWPDWWHUV $YLJQRQ ZDV 9LODU·V LQYHQWLRQ 7KH 713 RQ WKH RWKHU KDQG ZDV RIIHUHGWRKLPE\-HDQQH/DXUHQW DIHUYHQWVXSSRUWHURIGHFHQWUDOLVDWLRQ
-($19,/$5
ZKRZDVWRKROGDNH\SRVWLQWKHIXWXUH0LQLVWU\RI&XOWXUH 7KH713 DWWKH&KDLOORWZDVWREH9LODU·V¶ZLQWHU$YLJQRQ· DQG$YLJQRQZDVWREH WKH713·VVXPPHUUHVLGHQFH 7KH&KDLOORW·VDXGLWRULXPFRXOGVHDW VSHFWDWRUV ZKLFK RQWKHIDFHRILW FRUUHVSRQGHGZLWK9LODU·VLPDJHRI PDVV WKHDWUH DV H[HPSOLILHG E\ WKH 3DODLV GHV 3DSHV LQ $YLJQRQ WUDQV IRUPHGE\KLPLQWRDQDPSKLWKHDWUH 1HYHUWKHOHVV WKHJODFLDO&KDLOORW ZLWK LWV KXJH VSDFHV DQG LQKRVSLWDEOH FRUULGRUV DQG VWDLUZD\V ZDV D ¶SRLVRQHGJLIW· 9LODU ,WVDUFKLWHFWXUDOLGLRV\QFUDVLHVPDGHWKH FKRLFHRIDQDSSURSULDWHUHSHUWRLUHH[FHHGLQJO\GLIILFXOW 7KHVDPHZDV WUXHRIVWDJLQJDQGSHUIRUPDQFH )XUWKHUPRUH WKH WHUPV VHW E\ WKH JRYHUQPHQW IRU LWV RSHUDWLRQ ZHUHXQIDYRXUDEOH 7KLVWKHDWUHZDV¶QDWLRQDO· IURPWKHJRYHUQPHQW·V SRLQW RI YLHZ EHFDXVH LW ZDV VWDWHVXEVLGLVHG ¶QDWLRQDO· IURP 9LODU·V SRLQWRIYLHZEHFDXVHLWEURXJKWWRJHWKHUWKHQDWLRQ LUUHVSHFWLYHRI FODVV GLVWLQFWLRQV ,WV VXEVLGLHV KRZHYHU ZHUH ULVLEOH D PHUH PLOOLRQ IUDQFV DQQXDOO\ ROG FXUUHQF\ FRPSDUHG ZLWK WKH PLOOLRQ UHFHLYHG E\ WKH &RPpGLH )UDQoDLVH DQG RQH ELOOLRQ E\ WKH 2SpUD LELG $OO WKH RIILFH HTXLSPHQW FRVWXPHV DQG SURSV ERXJKWE\WKH713RXWRILWVDOORZDQFHEHORQJHGWRWKHVWDWH 7KH WKHDWUHKDGWRSD\LWVZD\IURPER[RIILFHUHFHLSWV 'HILFLWVZHUHWKH UHVSRQVLELOLW\RIWKHGLUHFWRUDQGZHUHWREHPHWH[FOXVLYHO\E\KLP DOWKRXJKWKHVWDWHFRYHUHGGHILFLWVRIWKH&RPpGLHDQGWKH2SpUD LELG 6R PXFK IRU WKH JRYHUQPHQW·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·VUHIRUPVZDVGHVLJQHGWRKHOSPHGLXPDQGORZ LQFRPHHDUQHUVLQDSUDFWLFDOZD\DQGWRFKDQJHSHUFHSWLRQVUHJDUGLQJ WKHWKHDWUHDVVXFK :KDWLVWDNHQIRUJUDQWHGWRGD\DVDQRUPDOSDUW RIWKHDWUHJRLQJZDV LQ9LODU·V V QRWKLQJVKRUWRIUHYROXWLRQDU\ 9LODU·VPRVWGDULQJLQQRYDWLRQZDVKLVV\VWHPRIJURXSWDULIIV IRU WUDGH XQLRQV DQG RWKHU ZRUNEDVHG RUJDQLVDWLRQV VXFK DV WKH FRPLWpV G·HQWUHSULVH ²VKRSIORRUFRPPLWWHHVWKDWLQYROYHGZRUNHUVLQFXOWXUDO RXWLQJV RU LQ LQKRXVH HGXFDWLYH RU OHLVXUH HYHQWV *URXS ERRNLQJV ZLWKUHGXFHGWLFNHWSULFHVDQGVSHFLDOSUHYLHZVZHUHDUUDQJHGIRUWKH FRPLWpV DQG D ZKROH UDQJH RI DVVRFLDWLRQV SRSXODLUHV LQFOXGLQJ \RXWK
-($19,/$5
DVVRFLDWLRQV OLNH WKH RQHV LQYROYHG ZLWK WKH $YLJQRQ )HVWLYDO %XVHV ZHUH KLUHG WR EULQJ WKHVH VSHFWDWRUV WR DQG IURP WKH WKHDWUH 'LVFXVVLRQV ZLWK 9LODU DQG WKH DFWRUV DERXW WKH SURGXFWLRQV ZHUH DUUDQJHG LQ WKHLU ZRUNSODFH FOXEV RU DW WKH &KDLOORW 1RWKLQJ ZDV WKRXJKW WRR LQVLJQLILFDQW WR RSHQ XS WKH 713 WR QHZ DXGLHQFHV DPRQJZKRPZHUHWKH¶KDUG· SUROHWDULDWFKDPSLRQHGE\6DUWUH 1RU ZDVDQ\WKLQJVSDUHGWRPDNHLWDYHULWDEOH¶VHUYLFHSXEOLF· VLQFHWKHDWUH ZDVDVQHFHVVDU\DV¶JDV ZDWHU HOHFWULFLW\· DQG¶DVLQGLVSHQVDEOHWROLIH DVEUHDGDQGZLQH· LELG 7KH SURFHVV RI VRFLDO LQWHJUDWLRQ LQLWLDWHG E\ 9LODU FDOOHG IRU DGGLWLRQDO DFWLRQ +H WRRN KLV FRPSDQ\ WR ZRUNLQJFODVV VXEXUEV QRWDEO\ 6XUHVQHVDQG*HQQHYLOOLHUV VRWKDW¶WKLV3DULVZKLFKLVODUJHU WKDQ3DULV· ZRXOGQRWIRUHYHUUHPDLQQHJOHFWHGE\WKHFDSLWDO LELG +DOOV KHUH VHUYHG FRPPXQLW\ SXUSRVHV EXW ZHUH XVXDOO\ XQVXLWDEOH IRU WKHDWUH SHUIRUPDQFHV 7KH\ SRVHG SUREOHPV IRU ULJJLQJ OLJKWV DGMXVWLQJ SOD\ WR VPDOO VWDJHV RU WR QRQH DW DOO DQG EDWWOLQJ ZLWK DFRXVWLFV FROG PDNHVKLIW GUHVVLQJ URRPV DQG LPSUR YLVHG VHDWLQJ DUUDQJHPHQWV IRU WKH DXGLHQFH
-($19,/$5
LQWLPDF\ ZDV QRW SRVVLEOH EHFDXVH RI WKH VKHHU VL]H RI WKH &KDLOORW 6SDFH IUHH RI GpFRU EHFDPH KLV WUDGHPDUN +H VNLOIXOO\ DSSURSULDWHG WKHKXJHVWDJHVDWKLVGLVSRVDOLQ3DULVDQG$YLJQRQWRWKLVDHVWKHWLF SULQFLSOHE\FUHDWLQJGLIIHUHQWSOD\LQJDUHDVLQWKHPWRVLJQDOFKDQJHV RIIRFXVRUVFHQHDQGE\XVLQJVZDWKHVRIOLJKWWRYDORULVHDFWLRQ WLPH DQGSODFH /LJKWYLUWXDOO\UHSODFHGGpFRU 2FFDVLRQDOSURSV²DFKDLU D VWDLU D VHDW D VW\OLVHG UDWKHU WKDQ QDWXUDO WUHH RU D KXJH PRELOH E\ $OH[DQGHU&DOGRU²ZHUHXVHGIRUSOD\UDWKHUWKDQHIIHFW 5LFK EHDXWLIXO FRVWXPHV DQG H[SUHVVLYH PDNHXS ZHUH 9LODU·V RQO\LQGXOJHQFHVRQWKHVWDJH &RVWXPHVKLVWRULFLVHGWKHFKDUDFWHUV JXLGLQJ VSHFWDWRUV WR VLWXDWH WKHP DSSURSULDWHO\ ZKLFK 9LODU EHOLHYHG ZDVQHFHVVDU\IRUDUHSHUWRLUHILOOHGZLWK)UHQFKFODVVLFV /H &LG DQG /RUHQ]DFFLR EHFDPH WKH FRPSDQ\·V VLJQDWXUH ZRUNV 9LODU·V DWWDFKPHQW WR QDWLRQDO FODVVLFV ZDV FORVHO\ ERXQG XS ZLWK SUDJPDWLF DQG LGHDWLRQDO IDFWRUV 2Q WKH SUDJPDWLF VLGH 9LODU DFNQRZOHGJHGWKHQDWLRQDO GLPHQVLRQRIKLVWDVN KHZDVUHVSRQVLEOH IRUWKH7KpkWUH1DWLRQDO3RSXODLUH ZKLFK KHUHPLQGHGKLVFULWLFV REOLJHG KLP WR VKRZ )UHQFK ZRUNV DEURDG LELG 2Q WKH LGHDWLRQDOVLGH KHLQVLVWHGRQWKHLPSRUWDQFHRI)UHQFKFODVVLFVIRU SRSXODU WKHDWUH VLQFHFODVVLFVRIZKDWHYHUFRXQWU\SURYLGHGWKHEHVW RI NQRZOHGJH DQG FXOWXUH $V VXFK WKH\ EHORQJHG DV PXFK WR WKH FODVVHVODERULHXVHV DVWRDQ\ERG\HOVH 9LODU·VPDQ\LQQRYDWLRQVVXFFHHGHGLQJLYLQJSULGHRISODFHWRWKH DFWRU +HVRXJKWDQ¶LQWHUQDO· TXDOLW\LQWKHLUDFWLQJ WKDWLV DFDSDFLW\ IRU SURMHFWLQJ HPRWLRQV WKRXJKWV DQG DFWLRQV ZLWKRXW KLVWULRQLF GLVSOD\ ,QWKLV KLVSURMHFWZDVFORVHWRWKDWRI&RSHDX DWWKH9LHX[ &RORPELHU DQG WKH 713 GHYHORSHG D VREHU UHVWUDLQHG SHUIRUPLQJ VW\OHWKDWJDYH9LODU·VSURGXFWLRQVDQDLURISRLVHDQGKDUPRQ\ 7KH 713 ¶VW\OH·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
-($19,/$5
IDUDVWRFDOOWKHGLUHFWRUDQ¶HJRFHQWULFPLUDFOHZRUNHU· DQGGHFODUH WKDW WKH PLVHHQVFqQH ¶RXJKW WR EH RXVWHG DVVDVVLQDWHG· LELG KHSUHIHUUHGWRVSHDNRIKLPVHOIDVD UpJLVVHXU VWDJHPDQDJHU DQGRIKLVSURGXFWLRQZRUNDVUpJLH +LVDWWDFNRQWKHKLJKFODLPVRI GLUHFWRUV IRU GLUHFWLRQ VWHPPHG IURP WKH YDOXH 9LODU DVFULEHG WR WH[WV 7KH DLP RI SURGXFWLRQV ZDV WR UHVSHFW WKH WH[W WKH\ SHUIRUPHG 8OWLPDWHO\ IRU 9LODU ¶WKH DXWKRU LV WKH FUHDWRU LQ WKH WKHDWUH· ZKLOHUpJLVVHXUV DQGDFWRUVDUHUHDOO\RQO\WKHLQWHUSUHWHUVRI WKH DXWKRU·V :RUG 9LODU 7KH PLVHHQVFqQH WKHQ FRXOG QRWFODLPWREHDQDFWRIFUHDWLRQLQLWVRZQULJKW $WWKHYHU\PRVW LWZDVDWULSOHDFWRILQWHUSUHWDWLRQFDUULHGRXW RQWKHDXWKRU E\WKH UpJLVVHXU DFWRUVDQGDXGLHQFHV LELG 9LODU·V SUHIHUUHG WH[WV ZKHWKHU QDWLRQDO RU IRUHLJQ ZHUH WKRVH IURP ZKLFK KH FRXOG GUDZ WKHPHV WKDW KH EHOLHYHG DGGUHVVHG RU FRUUHVSRQGHG ZLWK WKH SUHVVLQJ LVVXHV RI KLV GD\ 7KH WKHPHV RI JUHDWHVW VLJQLILFDQFH IRU KLP LQ WKH FODVVLFV ZHUH ZDU W\UDQQ\ DQG SRZHU DV LQ &RUQHLOOH·V &LQQD .OHLVW·V 3ULQFH RI +RPEXUJ RU%FKQHU·V'DQWRQ·V'HDWK ZKLFK DVVWDJHGE\9LODU ZDV WDNHQ WR EH DERXW 6WDOLQLVP WKH LPSDFW RI FRUUXSWLRQ /RUHQ]DFFLR DQG WKH DOOSHUYDVLYH LGHRORJ\ RI PRQH\ %DO]DF·V 6FKHPHU >OH )DLVHXU@ 7KH ¶KHURLF· FODVVLFV RI KLV UHSHUWRLUH ZKLFK UDQJHG IURP /H &LG WR 6RSKRFOHV· $QWLJRQH H[SORUHG WKHVWUXJJOHVRILQGLYLGXDOFRQVFLHQFHDJDLQVWDXWKRULW\ XVXDOO\WKDW RI WKH VWDWH 9LODU UHGLVFRYHUHG WKLV LVVXH LQ PRGHUQ SOD\V VXFK DV 0XUGHU LQ WKH &DWKHGUDO %UHFKW·V *DOLOHR DQG 5REHUW %ROW·V 0DQIRUDOO6HDVRQV UHQDPHG7KRPDV0RUH 9LODU·V FKRLFH RI FRQWHPSRUDU\ SOD\V UHIOHFWHG VLPLODU FRQFHUQV IRFXVLQJ PRUH RSHQO\ RQ FXUUHQW SUREOHPDWLFV 1D]LVP %UHFKW *DXOOLVP DQG WKH $OJHULDQ ZDU 7KH 7RDG ² %XIIDOR $UPDQG *DWWL DQGDWRPLFZDUIDUH +HQUL3LFKHWWH·V1XFOpD 9LODUVWDJHGD QXPEHU RI ZRUNV E\ FRQWHPSRUDU\ )UHQFK ZULWHUV DW WKH 5pFDPLHU WKHDWUH ZKLFK KH KDG UHQWHG DV DQ H[SHULPHQWDO VSDFH ,I WKH YHQWXUH ZDVVKRUWOLYHGDQGXQVXFFHVVIXO LWLVWR9LODU·VFUHGLWWKDWKHZLVKHGWR H[SRVH*DWWL 9LQDYHU 9LDQ 3LQJHWDQG2EDOGLDWRDZLGHUSXEOLF +H ODPHQWHG WKH ODFN RI FRQWHPSRUDU\ WH[WV VXLWDEOH IRU KLV QHHGV DQG EHOLHYHGWKDWWKH¶7KHDWUHRIWKH$EVXUG· ZDVQRWFLYLFLQLWVFRQFHUQV DOWKRXJKKHVWDJHG%HFNHWW·V.UDSS·V/DVW7DSH DWWKH5pFDPLHULQ 1RWHV
6HH HVSHFLDOO\ &RSIHUPDQQ (PLOH ¶(WVLFHQ·pWDLWSDV9LODU"· LQ /H7KpkWUHSRSXODLUH SRXUTXRL" 3DULV 0DVSpUR ² 7KHFDSLWDOLVHG¶:RUG· LVPLQH
7$'(86=.$1725
)XUWKHUUHDGLQJ %DUGRW -HDQ&ODXGH -HDQ9LODU 3DULV $UPDQG&ROLQ /HFOHUF *X\ /H713GH-HDQ9LODU 3DULV 8QLRQ*pQpUDOHGHO·(GL WLRQ 9LODU -HDQ 'HOD7UDGLWLRQWKpkWUDOH 3DULV *DOOLPDUG ³³ /H7KpkWUH VHUYLFHSXEOLFHWG·DXWUHVWH[WHV SUHVHQWHGDQGQRWHVE\ $UPDQG'HOFDPSH 3DULV *DOOLPDUG :HKOH 3KLOLSSD 0RGHO IRU DQ 2SHQ 6WDJH D 6WXG\ RI -HDQ 9LODU·V 7KHDWHUIRUWKH3HRSOH &ROXPELD8QLYHUVLW\ XQSXEOLVKHGGLVVHUWDWLRQ 0$5,$6+(97629$
7$'(86=.$1725 ² 7DGHXV].DQWRU 3ROLVKYLVXDODUWLVW WKHRULVW DQGWKHDWUHGLUHFWRUDQG IRXQGHU ZLWK 0DULD -DUHPD RI &5,&27 WKHDWUH FRPSDQ\ ZDVERUQLQ:LHORSROH 3RODQG +HZDVHGXFDWHGLQ7DUQyZ DQG .UDNyZ :KLOH VWXG\LQJ SDLQWLQJ DQG VWDJH GHVLJQ DW WKH $FDGHP\RI)LQH$UWVLQ.UDNyZ ² .DQWRUZDVLQWURGXFHG WR V\PEROLVP FRQVWUXFWLYLVP DQG WKH %DXKDXV ,Q KH IRXQGHG WKH (SKHPHULF 0HFKDQLF 7KHDWUH ZKHUH KH SUHVHQWHG 0DXULFH0DHWHUOLQFN·V 'HDWKRI7LQWDJLOHV ,Q ZLWKDJURXSRI \RXQJ SDLQWHUV .DQWRU RUJDQLVHG WKH XQGHUJURXQG H[SHULPHQWDO ,QGHSHQGHQW 7KHDWUH LQ .UDNyZ GXULQJ WKH 1D]L RFFXSDWLRQ IRU ZKLFKKHGLUHFWHG-XOLXV]6ORZDFNL·V %DOODG\QD DQG6WDQLVODZ :\VSLDQVNL·V 7KH 5HWXUQ RI 2G\VVHXV $V QRWHG E\ .DQWRU LQ KLV¶/HVVRQ · RI ¶7KH 0LODQR /HVVRQV· .DQWRU WKLV SURGXF WLRQ ZDV LQVWUXPHQWDO LQ WKH FUHDWLRQ RI KLV FRQFHSWV RI DQ REMHFW UHDOLW\ RI WKH ORZHVW UDQN DQG DXWRQRPRXV VSDFH 7KHVH FRQFHSWV ZHUHFDUHIXOO\GHDOWZLWKLQWKHSHULRGIURP XQWLO ZKHQ .DQWRUTXHVWLRQHGWKHRIILFLDOKLVWRULFDOQDUUDWLYHVWKDWKDGIRXQGD VXFFHVVIXOZD\RIJORVVLQJRYHU$GRUQR·VKDXQWLQJTXHVWLRQRIZKDW LW PHDQV WR UHSUHVHQW DIWHU $XVFKZLW] DQG TXHULHG WKH H[WDQW FRQYHQWLRQVRIFUHDWLQJRUGLVSOD\LQJDUW 7KXV .5$.Ð: &/$1'(67,1( 7+($75( 7+( 5(7851 2) 2'<66(86 )520 7+( 6,(*( 2) 67$/,1*5$' $EVWUDFWLRQ ZKLFK H[LVWHG LQ 3RODQG XQWLO WKH
7$'(86=.$1725
RXWEUHDNRI:RUOG:DU,, GLVDSSHDUHGLQWKHSHULRG RIPDVVJHQRFLGH >@ 7KHZRUNRIDUWORVWLWVSRZHU $HVWKHWLFUHSURGXFWLRQORVWLWVSRZHU 7KHDQJHURIDKXPDQEHLQJWUDSSHGE\RWKHUKXPDQEHDVWV FXUVHG$57 :HKDGRQO\WKHVWUHQJWKWRJUDEWKHQHDUHVW WKLQJ 7+(5($/2%-(&7 DQGWRFDOOLWDZRUNRIDUW @ $NLWFKHQFKDLU $QREMHFW ZKLFKZDVYRLGRIDQ\OLIHIXQFWLRQ HPHUJHGIRU WKHILUVWWLPHLQKLVWRU\ 7KLVREMHFWZDVHPSW\ .DQWRU ²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¶UHIXVHG FDWHJRULFDOO\WREHRQO\DQLPDJH DUHSUHVHQWDWLRQ >«@,QWLPHVRI PDGQHVV FUHDWHG E\ PHQ LQ WLPHV RI ZDU GHDWK DQG LWV IULJKWHQLQJ WURXSHV ZKLFKUHIXVHGWREHVKDFNOHGE\5HDVRQDQG+XPDQ6HQVHV EXUVWLQWRDQGPHUJHGZLWKWKHVSKHUHRIOLIH· LELG 7KHSDWKRV RI GUDPD DQG LWV P\WKRORJLFDO FKDUDFWHUV ZHUH WKURZQ LQWR DQG PHUJHGZLWKHYHU\GD\OLIH²KHUH WKHZDU 7KHSOD\ZDVVWDJHGQRWLQ DWKHDWUHEXLOGLQJ EXWLQDURRPZKLFK¶ZDVGHVWUR\HG· EDUH EULFNV VWDUHG IURP EHKLQG D FRDW RI SDLQW SODVWHU ZDV KDQJLQJIURPWKHFHLOLQJ ERDUGVZHUHPLVVLQJLQWKHIORRU DEDQGRQHGSDUFHOVZHUHFRYHUHGZLWKGXVW GHEULVZDVVFDW WHUHG DURXQG SODLQ ERDUGV UHPLQLVFHQW RI WKH GHFN RI D
7$'(86=.$1725
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¶,W ZDV DQ LQYHQWRU\ >RI IDFWV WKHDWULFDO REMHFWV GUDZLQJV VNHWFKHV SUHVFULSWLRQV OHWWHUV VWDPSV WUDP DQG EXV WLFNHWV HWF@ ZLWKRXWDQ\FKURQRORJ\ KLHUDUFK\ DQGORFDOLW\· 7KXV WKHIRFXVZDV RQWKHLULQKHUHQWVWUXFWXUHUDWKHUWKDQRQWKHWRWDOLW\RIWKHLUHIIHFWV RQDPDQXDOSURFHVVRIVLJQLILFDWLRQUDWKHUWKDQWKHYLVXDOVRYHUHLJQW\ RI WKH H\H ZKLFK SURGXFHV WKH UHSUHVHQWDWLRQDO LPDJH LQ D FODVVLFDO WKUHHGLPHQVLRQDO VSDFH RQ QRQILJXUDWLYH DQG QRQLOOXVWUDWLYH SURFHVVHV RQ WKDW ZKLFK¶UHIXVHV WKH FRQVRODWLRQ RI FRUUHFW IRUPV UHIXVHV WKH FRQVHQVXV RI WDVWH SHUPLWWLQJ D FRPPRQ H[SHULHQFH RI QRVWDOJLDIRUWKHLPSRVVLEOH DQGLQTXLUHVLQWRQHZSUHVHQWDWLRQV· ,Q RUGHU WR DFFRPSOLVK WKLV .DQWRU LQFRUSRUDWHG UHDG\PDGH HOHPHQWV ² REMHFWV HYHQWV DQG HQYLURQPHQW ² LQWR DUWLVWLF DFWLYLW\ 7KLVUHDOLW\ZDVQRWVXEMXJDWHGWRDUWLVWLFPRXOGLQJ QRUGLGLWFRUUH VSRQGWRDQ\UHSUHVHQWDWLRQDOFRQYHQWLRQV $VREVHUYHGE\.DQWRU 5HDOLW\FDQRQO\EH ¶XVHG· >«@ 0DNLQJXVHRIUHDOLW\ LQDUW VLJQLILHV DQDQQH[DWLRQRIUHDOLW\ >«@ 'XULQJWKLVSURFHVV UHDOLW\ WUDQVJUHVVHV
7$'(86=.$1725
LWVRZQERXQGDU\ DQGPRYHVLQWKHGLUHFWLRQRIWKH ¶LPSRVVLEOH· 7KHDQQH[HGUHDOLW\FRQWDLQVLQLWVHOI UHDOREMHFWV VLWXDWLRQV DQGDQHQYLURQPHQWGHVFULEHG E\WLPHDQGSODFH ,ELG ² 7KHVWUDWHJ\RIDQQH[LQJUHDOLW\VLJQLILHGWKHSURFHVVRIH[SORULQJWKH IXQFWLRQLQJ RI REMHFWV LQ UHODWLRQ WR RWKHU HOHPHQWV SRVLWLRQHG LQ VSDFH ,W DOORZHG WKH DUWLVW WR EH¶VXUSULVHG DFFLGHQWDOO\ DQG XQH[ SHFWHGO\ E\ WKH XQNQRZQ DQG LJQRUHG VSKHUH RI UHDOLW\ ZKLFK LQWHUYHQHV LQ DUW· %RURZVNL ,Q .DQWRU·V SURGXFWLRQ RI 6WDQLVODZ ,JQDF\ :LWNLHZLF]·V 7KH &XWWOHILVK WKH HQYLURQ PHQW REMHFWV DQG DFWRUV ZHUH HQJDJHG LQ DQ LQWULFDWH SURFHVV RI FRQVWLWXWLQJ GLYHUVH VSDWLDO IRUPDWLRQV VKRFNV DQG WHQVLRQV LQ RUGHU WRXQEORFNWKHLPDJLQDWLRQDQGWRFUXVKWKHLPSUHJQDEOHVKHOORIWKH GUDPD 7KLV H[SORUDWLRQ ZDV GLIIHUHQW DW GLIIHUHQW WLPHV GXULQJ WKH V ,Q¶7KH,QIRUPHO7KHDWUH· .DQWRUH[SORUHGPDWWHU >DQXQNQRZQDVSHFWRI5($/,7<RURILWVHOHPHQWDU\VWDWH@ ZKLFKLV IUHHGIURPDELGLQJE\WKHODZVRIUHDOLW\ LVDOZD\VFKDQJLQJDQGIOXLG LWHVFDSHVWKHERQGDJHRIUDWLRQDOGHILQLWLRQV LWPDNHVDOODWWHPSWVWRFRPSUHVVLWLQWRDVROLGIRUPULGLFXORXV KHOSOHVV DQGYDLQ LWLVSHUHQQLDOO\GHVWUXFWLYHWRDOOIRUPV DQGQRWKLQJPRUHWKDQDPDQLIHVWDWLRQ LWLVDFFHVVLEOHRQO\WKURXJK WKHIRUFHVRIGHVWUXFWLRQ E\ZKLPDQGULVNRI&2,1&,'(1&( E\IDVWDQGYLROHQWDFWLRQ .DQWRU ,Q ¶7KH =HUR 7KHDWUH· VHH LELG .DQWRU UDGLFDOO\ UHSRVL WLRQHG WKH UHSUHVHQWDWLRQ RI DFWRUV· HPRWLRQDO VWDWHV DQG WKHLU UHODWLRQVKLSZLWKDGUDPDWLFWH[W ,QWKH 0DGPDQDQGWKH1XQ KH XVHG D FRQVWUXFWLRQ PDGH RI IROGLQJ FKDLUV ¶WKH GHDWK PDFKLQH·
7$'(86=.$1725
:KLOH RSHUDWLQJ RQ VWDJH WKH PDFKLQH GHVWUR\HG WKH SRVVLELOLW\ RI SUHVHQWLQJ D GUDPDWLF WH[W DQG LWV FKDUDFWHUV ² WKH DFWRUV ² SXVKHG DVLGH KDGWRILJKWIRUDFWLQJVSDFHDQGVWUXJJOHQRWWREHWKURZQRII WKHVWDJH 7KHDFWLRQVRQVWDJHFRXOGQRWLOOXVWUDWHWKHSORWDQ\PRUH WKDQWKHDFWRUVFRXOGFUHDWHWKHLOOXVLRQRIFKDUDFWHUV VLQFHWKHDFWLRQ RQVWDJHZDVFRQVWUXFWHGE\UHIHUHQFHVWRRWKHUHYHQWVWDNLQJSODFHLQ WKHVWDJHHQYLURQPHQW WKHDFWRUVFRXOGRQO\UHSUHVHQWWKHPVHOYHVDQG WKHLU RZQ HPRWLRQV 7KXV ¶7KH =HUR 7KHDWUH· ZDV D GHWRXU IURP LQVWDQWJUDWLILFDWLRQ LWWHDVHGWKHDXGLHQFHZLWKWKHODFNRIV\QFKURQL VDWLRQ EHWZHHQ WKH WH[W DQG WKH VWDJH DFWLRQ DQG EHWZHHQ H[SHFWHG HPRWLRQVDQGWKHDFWRUV· H[SUHVVLRQRIWKHLURZQHPRWLRQDOFRQGLWLRQV ,Q¶7KHDWUH+DSSHQLQJ· VHH LELG .DQWRU GUHZ DWWHQWLRQ WR HYHU\GD\ UHDOQHVV DQG LWV SRWHQWLDO IRU EHLQJ D QRQFRQFHSWXDO PHGLXPRUD¶UHDG\PDGH· REMHFW¶ZKLFK>KDG@EHHQIRXQG DQREMHFW ZKRVH VWUXFWXUH >ZDV@ GHQVH DQG LWV LGHQWLW\ >ZDV@ GHOLQHDWHG E\ LWV RZQ ILFWLRQ LOOXVLRQ DQG SV\FKRSK\VLFDO GLPHQVLRQ· LELG 8VLQJREMHFWV PDWWHU PDUJLQDOLVHGREMHFWV GHJUDGHGREMHFWV ZKLFK ZHUHSRVLWLRQHGZLWKLQWKHG\QDPLF IOXLGDQGRSHQIDEULFRIUHDOLW\ .DQWRUFKDOOHQJHGDPRGHORIFXOWXUHRUDUWLVWLFDFWLYLW\ZKLFKZDV EDVHG RQ WKH DUWLVWLF UHSUHVHQWDWLRQ RI WKH LPDJHREMHFW RU D WH[W .DQWRU·V WKHDWUH H[SHULPHQWV ZKLFK IURP WR WRRN WKH IRUPRI+DSSHQLQJV IXUWKHUGHYHORSHGWKHVHLGHDV ¶7KH 7KHDWUH RI 'HDWK· 0DQLIHVWR VHH LELG DUWLFXODWHG D VKLIW LQ .DQWRU·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·V IDPLO\ZKREURXJKWWRWKHIRUHWKHGXELRXVSURFHVVRIUHFRQVWUXFWLQJ RQH·VSULYDWHDQGSXEOLFPHPRULHV :LHORSROH :LHORSROH ZDV.DQWRU·V DWWHPSW WR JLYH D PDWHULDO VKDSH WR KLV YLVXDO PHPRULHV VWDJHG LQ D WKUHHGLPHQVLRQDO WKHDWULFDO VSDFH /HW WKH $UWLVWV 'LH FRQWLQXHG KLV¶PHPRU\· SURMHFW 7KLV WLPH KRZHYHU KLV WKHRU\ RI QHJDWLYHVPRGLILHGWKHQRWLRQRIWKHURRPRIPHPRU\²QRZFDOOHG D¶VWRUHURRP RI PHPRU\· $ SHUIRUPDQFH VSDFH ZDV D SODFH ZKHUH PHPRULHVQRORQJHUXQIROGHGLQDOLQHDUIDVKLRQ EXWZHUHVXSHULP
7$'(86=.$1725
SRVHG RQH XSRQ WKH RWKHU 1RWKLQJ HQFDSVXODWHV WKLV SURFHVV EHWWHU WKDQWKHIROORZLQJVWDWHPHQWPDGHE\.DQWRU ,FRQVLVWRIDPXOWLSOHVHULHVRIFKDUDFWHUVHPEUDFLQJDOO SRVVLELOLWLHVIURPFKLOGKRRGXSWRWKHSUHVHQWPRPHQW² DOOPDUFKLQJIURPWKH'(37+62)7,0( 7KH\DUHDOOPH ,DPVLWWLQJRQVWDJH , 7+(5($/21( 2QWKHEHGOLHVRQHWKHWZLQV , 7+('<,1*21(« ,QDPRPHQW$/,77/(62/',(5ZLOOVKRZXS² ,$77+($*(2)6,; ,1$35$0 ,ELG ,Q , 6KDOO 1HYHU 5HWXUQ .DQWRU H[SORUHG WKH FRQFHSW RI WKH¶LQQRIPHPRU\· ZKLFKH[LVWHGEH\RQGWKHFRQILQHVRIWLPHDQG VSDFH ZKHUH .DQWRU WKH 6HOI FRXOG ILQDOO\ HQFRXQWHU KLV RZQ SDVW FUHDWLRQV WKH2WKHUV $VKHQRWHG XQWLOQRZ :KHQ,ZDQWHGWRGLH VRPHRQHHOVHZDVG\LQJIRUPH +HZDVSOD\LQJWKHSDUWRIPHG\LQJ >«@ :KHQ>«@,NHSWUHWXUQLQJWRWKHPHPRULHV RIP\6FKRRO&ODVV LWZDVQRW, EXWWKHRWKHUV WKHDFWRUV ZKRUHWXUQHGWRWKHVFKRROGHVNV ,ELG ,Q WKH LQQ RI PHPRU\ .DQWRU GHVWUR\HG WKH GLFKRWRP\ EHWZHHQ WKH 6HOIDQGWKHREMHFWVRIKLVFUHDWLRQE\EHLQJIXOO\LQWHJUDWHG LQWRWKH VWDJHDFWLRQ ZKLFKXQIROGHGDVDFROODJHRILWHPVIURPKLVSDVWSURGXF WLRQVDQGXQH[SHFWHGHQFRXQWHUVZLWKWKHREMHFWVRIKLVFUHDWLRQ 7RGD\ LV 0\ %LUWKGD\ ZDV ILOOHG ZLWK REMHFWV DQG SHRSOH IURP.DQWRU·VURRPRILPDJLQDWLRQPHPRU\ KLVSDLQWLQJV REMHFWV FKDUDFWHUV IURP SDVW SURGXFWLRQV SHRSOH DQG VR RQ $OO RI WKHP SDUWLFLSDWHGLQWKHSURFHVVRIH[SORULQJWKHUHODWLRQVKLSEHWZHHQWKH ZRUOG RI ,OOXVLRQ DQG WKH ZRUOG RI 5HDOLW\ 7KLV SURGXFWLRQ FRQWLQXHGWKHSURFHVVLQLWLDWHGLQ,6KDOO1HYHU5HWXUQ ZKLOH DWWKH VDPH WLPH LW IXOO\ GHPROLVKHG WKH LPSDVVDEOH EDUULHU WKDW .DQWRU ILUVWHVWDEOLVKHGLQ E\SODFLQJVFKRROEHQFKHVLQWKHFRUQHURID SHUIRUPDQFHVSDFHVHSDUDWHGIURPWKHDXGLHQFHE\WZRURSHV 1RZ
7$'(86=.$1725
WKH VSDFH RI DUW DQG WKH VSDFH RI OLIH FRQYHUJHG RYHUODSSHG DQG FRDOHVFHG¶VKDULQJWKHLUIDWHDQGGHVWLQ\· LELG .DQWRU·V WKHDWUH H[SHULPHQWV DQG KLV FKURQLFOLQJ RI WKH RIILFLDO DQGXQRIILFLDOKLVWRU\RIWKHWZHQWLHWKFHQWXU\DUHDWHVWLPRQ\WRKLV EHOLHIWKDWWKHDWUHLVDQDQVZHUWRUHDOLW\UDWKHUWKDQDUHSUHVHQWDWLRQ RILW²DQ\UHDOLW\ ZKHWKHUWKH6HFRQG:RUOG:DU SRVWZDU(XURSH RU6RFLDOLVW3RODQG 7KHDWUH DVKHLQVLVWHG LVDQDFWLYLW\WKDWRFFXUVLIOLIHLVSXVKHGWRLWVILQDOOLPLWV ZKHUH DOO FDWHJRULHV DQG FRQFHSWV ORVH WKHLU PHDQLQJ DQG ULJKWWRH[LVW ZKHUHPDGQHVV IHYHU K\VWHULD DQGKDOOXFLQD WLRQ DUH WKH ODVW EDUULFDGHV RI OLIH EHIRUH WKH DSSURDFKLQJ 75283(6 2) '($7+ DQG GHDWK·V *5$1' 7+($75( ,ELG 1RWHV
6HH $GRUQR 7KHRGRU ¶&RPPLWPHQW· LQ $UDWR $QGUHZ DQG *HEKDUGW (LNH HGV 7KH(VVHQWLDO)UDQNIXUW6FKRRO5HDGHU 2[IRUG %DVLO %ODFNZHOO ² .DQWRU 7DGHXV] ¶=HUR· LQ$PEDOD]H :DUVDZ *DOHULD)RNVDO /\RWDUG -HDQ)UDQoRLV 7KH 3RVWPRGHUQ ([SODLQHG WUDQV 'RQ %DUU\ %HUQDGHWWH 0DKHU -XOLDQ 3HIDQLV 9LUJLQLD 6SDWH DQG 0RUJDQ 7KRPDV 0LQQHDSROLV 8QLYHUVLW\RI0LQQHVRWD3UHVV .RELDOND 0LFKDO ¶7DGHXV] .DQWRU·V +DSSHQLQJV 5HDOLW\ 0HGLDOLW\ DQG+LVWRU\· 7KHDWUH6XUYH\ ² 6HH .DQWRU 3DUW ¶7KH 4XHVW IRU WKH 6HOI2WKHU $ &ULWLFDO 6WXG\ RI 7DGHXV] .DQWRU·V 7KHDWUH· IRU D GHWDLOHG GLVFXVVLRQ RI WKH FRQFHSW RI PHPRU\ LQ .DQWRU·V SURGXFWLRQV IURP WKH SHULRG EHWZHHQ DQG
)XUWKHUUHDGLQJ %DEOHW 'HQQLV 7DGHXV].DQWRU 3DULV &156(GLWLRQV %DQX *HRUJHV HG .DQWRU O·DUWLVWHjODILQGX;;pVLpFOH 3DULV $FWHV 6XG3DSLHUV %RURZVNL :LHVODZ 7DGHXV] .DQWRU :DUV]DZD :\GDZQLFWZR $UW\VW\F]QHL)LOPRZH .DQWRU 7DGHXV] $ -RXUQH\ 7KURXJK 2WKHU 6SDFHV (VVD\V DQG 0DQL IHVWRV ² HG DQGWUDQV 0LFKDO.RELDOND %HUNHOH\ 8QLYHUVLW\RI &DOLIRUQLD3UHVV 3OHVQLDURZLF] .U]\V]WRI HG +RPPDJH j 7DGHXV] .DQWRU .UDNyZ &ULFRWHND
-2$1/,77/(:22'
³³ 7KH 'HDG 0HPRU\ 0DFKLQH 7DGHXV] .DQWRU·V 7KHDWUH RI 'HDWK $EHU\VWZ\WK %ODFN0RXQWDLQ3UHVV 0,&+$/.2%,$/.$
-2$1/,77/(:22' ² 'HVFULEHG E\ RQH RI KHU FROODERUDWRUV 0XUUD\ 0HOYLQ DV ¶RXU *DOLOHR VKH RSHQHG XS QHZ ZRUOGV IRU XV· ,QGHSHQGHQW 0DUFK -RDQ /LWWOHZRRG SLRQHHUHG D WKHDWUH SUDFWLFH IXHOOHG E\ FUHDWLYH HQTXLU\ IRUPDO H[SHULPHQWDWLRQ SROLWLFDO XUJHQF\ DQG D GHHSUHVSHFWIRU DQGFHOHEUDWLRQRI KXPDQLW\LQDOOLWVFRPSOH[LW\ YLEUDQF\ EHDXW\ IDLOXUH DQG KXPRXU 5HMHFWLQJ WKH VWHULOH PLGGOH FODVV PDQQHUV RI PDLQVWUHDP %ULWLVK WKHDWUH VKH HQFRXQWHUHG DW 5$'$LQWKHHDUO\ V /LWWOHZRRGIOHGWR0DQFKHVWHUZKHUHVKH EHFDPHLQYROYHGLQWKH:RUNHUV·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·V SKLORVRSKLFDO EDVLV DQG ZRUNLQJ PHWKRGV ,Q WKH IROORZLQJ GHFDGH UDGLFDOLQWHUSUHWDWLRQVRIFODVVLFV YLEUDQWQHZZULWLQJ SRSXODUWKHDWUH IRUPV DYDQWJDUGH H[SHULPHQW WKHDWULFDO LQYHQWLYHQHVV DQG JURXQG EUHDNLQJ UHSUHVHQWDWLRQV RI ZRUNLQJFODVV OLIH HDUQHG 7KHDWUH :RUNVKRS D UHSXWDWLRQ IRU LQYLJRUDWLQJ WKH %ULWLVK VWDJH 7KH FRPSDQ\ DOVR HVWDEOLVKHG LWVHOI DV RQH RI (XURSH·V PRVW FULWLFDOO\ DFFODLPHG DQG LQIOXHQWLDO FRPSDQLHV 1RQH WKH OHVV WKURXJKRXW KHU FDUHHU /LWWOHZRRG HQGXUHG DQ HQGOHVV EDWWOH ZLWK KRVWLOH IXQGLQJ ERGLHV WKDW UHIXVHG WR DFNQRZOHGJH KHU RULJLQDOLW\ DQG WKHDWULFDO LQIOXHQFH ZLWK DGHTXDWH ILQDQFLDO EDFNLQJ )RUFHG WR FRXUW :HVW (QG PDQDJHPHQWV NHHQ WR FDVK LQ RQ WKH VXFFHVVIXO 7KHDWUH :RUNVKRSIRUPXOD /LWWOHZRRGUHWUHDWHGIURPGLUHFWLQJIROORZLQJKHU VHPLQDOSURGXFWLRQ2K:KDWD/RYHO\:DU DQGILQDOO\UHWLUHG
-2$1/,77/(:22'
IURPSURIHVVLRQDOWKHDWUHDIWHUWKHGHDWKRI*HUU\5DIIOHV KHU ORQJ WHUPSDUWQHUDQG*HQHUDO0DQDJHURI 7KHDWUH:RUNVKRS LQ 6KH IDPRXVO\ ZURWH¶, GR QRW EHOLHYH LQ WKH VXSUHPDF\ RI WKH GLUHFWRU GHVLJQHU DFWRURUHYHQRIWKHZULWHU ,WLVWKURXJKFROODER UDWLRQ WKDW WKLV NQRFNDERXW DUW RI WKHDWUH VXUYLYHV DQG NLFNV·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·V ZRUN DW 5$'$ /LWWOHZRRGHPEUDFHGKLVWKHRU\DQGDQDO\VLVRINLQHVLFVDQGLQYLWHG-HDQ 1HZORYH ZKR KDG VWXGLHG DQG ZRUNHG ZLWK /DEDQ WR MRLQ 7KHDWUH :RUNVKRSLQ &RPSDQ\PHPEHUVWUDQVSRVHG/DEDQ·VLGHDVRQWKH LQWHUUHODWLRQVKLSEHWZHHQWLPH VSDFHDQGHQHUJ\WRSK\VLFDOFKDUDFWHUL VDWLRQ UK\WKPDQGVSDWLDOG\QDPLFVWRFRXQWHUDFW¶DQLQEXLOWUHVLVWDQFH ZHDOOKDYHWRXVLQJRXUERGLHVLQDGLIIHUHQWZD\· *RRUQH\ ,Q D UDGLFDO GHSDUWXUH IURP WKH WH[WERXQG %ULWLVK DFWLQJ WUDGL WLRQ RI WKH SHULRG WKLV IRUPDO WUDLQLQJ FRLQFLGHG ZLWK JDPHV DQG LPSURYLVDWLRQ ¶WR GHYHORS LQLWLDWLYH H[FLWH FXULRVLW\ H[HUFLVH WKH LPDJLQDWLRQ· /LWWOHZRRG ZLWK D YLHZ WR FUHDWLQJ WKH FRQGLWLRQVIRUWKHDWULFDOLQYHQWLRQ DQXQVSRNHQ¶SURFHVVRIWKRXJKW· LELG WKDW HQDEOHG DFWRUV WR EH RULJLQDO LQWXLWLYH UHVSRQVLYH DQG UHDO LQ UHKHDUVDO DQG SHUIRUPDQFH ([WHQGHG LPSURYLVDWLRQV DLPHGWRFDSWXUHWKHDXWKHQWLFKXPDQPLQXWLDHRIHYHU\GD\LQWHUDF WLRQ WKH VKLIWLQJ PRRGV VLOHQFHV SK\VLFDO GHWDLO UK\WKPV WH[WXUHV DQWDJRQLVPV GHPRWLF VSHHFK SDWWHUQV DQG FRPSOH[ VSDWLDO UHODWLRQV VRWKDWDFWRUVFRXOGOLYH UDWKHUWKDQDFW RQVWDJH FRPSOHPHQWLQJDQG FRXQWHUSRLQWLQJHDFKRWKHU·VDFWLRQVOLNHDMD]]HQVHPEOH :RUNLQJ
-2$1/,77/(:22'
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·V HQJDJHPHQW LQ WKH FDPSDLJQ DJDLQVW WKHDWULFDO FHQVRUVKLS SDUWLFXODUO\ IROORZLQJ LWV KLJKSURILOH SURVHFXWLRQ IRU +HQU\&KDSPDQ·V
-2$1/,77/(:22'
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·VGRXEOHELOO RI0ROLqUH·V7KH)O\LQJ'RFWRU DQG0DF&ROO·V-RKQQ\1REOH GUHZRQ WKH JURWHVTXH FRPHG\ DQG FDULFDWXUH RI WKH 0DU[ %URWKHUV DQG FRPPHGLD GHOO·DUWH LQ WKH IRUPHU 7KH ODWWHU ¶D EDOODG RSHUD· XVHG DPSOLILHGVRXQG DFDSSHOODVLQJLQJ GDQFHDQGQDWXUDOLVWLFVHTXHQFHV ,QWKH V /LWWOHZRRGGHYHORSHGDQLQWHUQDWLRQDOUHSXWDWLRQIRU VWDUNO\ HFRQRPLFDO PRGHUQ SURGXFWLRQV RI FODVVLFV VXFK DV $UGHQ RI )DYHUVKDP DQG 9ROSRQH DORQJVLGH H[KLODUDWLQJ GHSLFWLRQV RI ZRUNLQJ FODVV OLIH WKDW FRQMXUHG ZLWK WKH UXPEXVWLRXV VSLULW RI WKH SRSXODU PXVLF KDOO %UHQGDQ %HKDQ·V 7KH 4XDUH )HOORZ LQLWLDWHG WKH WUHQG IRU FRPELQLQJ UREXVW GHPRWLF VSHHFK JDOORZV KXPRXU DQG D ZU\ ORRN DW WKH GDUNHU UHFHVVHV RI KXPDQLW\ DV D SULVRQ SRSXODWLRQ SUHSDUHVIRUWKHH[HFXWLRQRIRQHRILWVPHPEHUV $VXVXDO /LWWOHZRRG FRQFHQWUDWHG RQ DXWKHQWLF DFWLRQ ¶GD\ WR GD\ URXWLQHV ZHUH LPSUR YLVHG FOHDQLQJ RXW FHOOV WKH TXLFN VPRNH WKH IXUWLYH FRQYHUVDWLRQ WUDGLQJ WREDFFR DQG WKH ERUHGRP DQG PHDQQHVV RI SULVRQ OLIH· *RRUQH\ $XWKHQWLFLW\VLPLODUO\LQIXVHG6KHODJK'HODQH\·V VRFLDOUHDOLVWGHSLFWLRQRIDJURWW\6DOIRUGEHGVLWLQ $7DVWHRI+RQH\ WKDW/LWWOHZRRGWKHDWULFDOLVHGE\KDYLQJGLUHFWDGGUHVV YDULHW\ VW\OHEDQWHUDQGDOLYHMD]]WULREXUVWWKURXJKWKHIRXUWKZDOO )RU PDQ\ FULWLFV WKH WHFKQLFDO LQYHQWLYHQHVV HQGRISLHU IRUPDW DQGURXVLQJSRSXODUHQWHUWDLQPHQWRI2K:KDWD/RYHO\:DU PDUNHG WKH KLJK SRLQW RI 7KHDWUH :RUNVKRS·V DFKLHYHPHQWV ,QVSLUHG E\ &KDUOHV &KLOWRQ·V UDGLR SURJUDPPH $ /RQJ /RQJ 7UDLO /LWWOHZRRG FUHDWHGDIUDPHZRUNRIH[XEHUDQW SDURGLF FRPLFDQGSRLJQDQW)LUVW :RUOG :DU VRQJV RQ ZKLFK VKH KXQJ D FROODJH RI DQWLWKHWLFDO VW\OHV WKDWUHYHDOHGWKHDEVXUGEUXWDOLW\RIZDUDQGDGHILDQWFHOHEUDWLRQRI UHVLVWDQFH DQG VXUYLYDO 3URMHFWHG LPDJHV UXQQLQJ WKH ZLGWK RI WKH VWDJH GLVSOD\HGUHFUXLWLQJSRVWHUV IROORZHGE\SKRWRJUDSKLFHYLGHQFH RIZDUFDVXDOWLHV 0HDQZKLOH D¶WLFNHUWDSH· QHZVSDQHOIODVKHGFRQWH[ WXDOLQIRUPDWLRQ RIILFLDOGHDWKWROOVDQGVWDWLVWLFVRIEDWWOHVIRXJKW ZRQ DQG ORVW 7KHVH OLYLQJ QHZVSDSHU WHFKQLTXHV IXQFWLRQHG LQ G\QDPLF
-2$1/,77/(:22'
LQWHUSOD\ ZLWK PXOWLIDFHWHG OLYH DFWLRQ D 0DVWHU RI &HUHPRQLHV· MRFXODU LQWHUMHFWLRQV DQG DFWRUV DV VHDVLGH SLHUURWV HQDFWLQJ VDWLULFDO VNHWFKHV YDXGHYLOOLDQDFWVDQGUHDOLVWLFVFHQHVRIWUHQFKOLIH $ORQJVLGH KHU SURFHVVRULHQWHG DQG DHVWKHWLF FRQFHUQV /LWWOHZRRG UHWXUQHG FRQVLVWHQWO\ WR PDWHULDO WKDW UDLVHG XUJHQW TXHVWLRQV DERXW KXPDQUHVSRQVLELOLW\ SROLWLFDODFWLRQDQGHWKLFDODFFRXQWDELOLW\ ,Q FLYLOZDULQ6SDLQSURPSWHGDVWDJLQJRI/RSHGH9HJD·V)XHQWHRYHMXQD D VWRU\RIUHYROWDJDLQVWW\UDQQRXVIHXGDORYHUORUGV WRSURPRWHVROLGDULW\ ZLWKWKH,QWHUQDWLRQDO%ULJDGH·VVWUXJJOHDJDLQVWIDVFLVPDQGWKHIRUFHV RI)UDQFR 7KHLPSOLFDWLRQVDQGZLGHVSUHDGDQ[LHWLHVJHQHUDWHGE\WKH GLVFRYHU\ RI DWRPLF HQHUJ\ DQG HYHQWV LQ +LURVKLPD DQG 1DJDVDNL IXHOOHG 8UDQLXP 7KH 2WKHU $QLPDOV SUHVHQWHG D SKLORVRSKLFDO PHGLWDWLRQ RQ WKH QDWXUH RI WUXWK DQG FRQVFLHQFH WROG IURP WKH SHUVSHFWLYH RI D SROLWLFDO SULVRQHU %HKDQ·V YDXGHYLOOLDQ 7KH +RVWDJH LQGLVFULPLQDWHO\DWWDFNHG%ULWLVKFRORQLDOUXOH WKH,5$ DQG WKH &DWKROLF FKXUFK DPRQJVW RWKHU LQVWLWXWLRQV DOVR PDLQWDLQLQJ KXPDQLWDULDQFRQFHUQVDWLWVFRUHZKHQDQHLJKWHHQ\HDUROGVROGLHULV DFFLGHQWDOO\ NLOOHG DIWHU EHLQJ WDNHQ KRVWDJH LQ UHWDOLDWLRQ DJDLQVW WKH %ULWLVK DUP\·V SODQ WR H[HFXWH DQ ,5$ UHYROXWLRQDU\ (YHQ ZKHQ /LWWOHZRRGWDFNOHGFODVVLFWH[WV VKHVWULSSHGDZD\WKHLUXVXDOUHYHUHQWLDO WUHDWPHQW WR XQFRYHU WRSLFDO SROLWLFDO UHVRQDQFH HYHQ LI WKLV PHDQW GUDVWLFDOO\FXWWLQJDQGUHVLWXDWLQJVFHQHV -XVWLI\LQJKHU PRGHUQ GUHVVYHUVLRQRI0DFEHWK ZKLFKFDVW0DFEHWKDVDGLFWDWRUIDFLQJDILULQJ VTXDGIRUKLVFULPHVDJDLQVWKXPDQLW\ /LWWOHZRRGH[SODLQHG 7KH SRHWU\ RI 6KDNHVSHDUH·V GD\ ZDV D PXVFXODU DFWLYH IRUZDUGPRYLQJ SRHWU\ LQ WKDW LW ZDV OLNH WKH SHRSOH WR ZKRP LW EHORQJHG ,I 6KDNHVSHDUH KDV DQ\ VLJQLILFDQFH WRGD\ D SURGXFWLRQ RI KLV ZRUN PXVW QRW EH UHJDUGHG DV D KLVWRULFDO UHFRQVWUXFWLRQ EXW DV DQ LQVWUXPHQW VWLOO VKDUS HQRXJK WR SURYRNH WKRXJKW WR H[WHQG PDQ·V DZDUHQHVV RI KLVSUREOHPV DQGWRVWUHQJWKHQKLVEHOLHILQKLVNLQG &LWHGLQ*RRUQH\ 2K:KDWD/RYHO\:DU FHPHQWHGWKLVWUDGLWLRQRIVRFLRSROLWLFDO FULWLTXH ZLWK D VDWLULFDO GLVVHFWLRQ RI WKH FDSLWDOLVW LPSHUDWLYHV SRZHUEURNHULQJV FODVV UHODWLRQV DQG GHYDVWDWLQJ KXPDQ FRQVH TXHQFHVRIWKH*UHDW:DU D¶:DU7R(QG$OO:DUV· UHLQWHUSUHWHGLQ WKH ORQJ VKDGRZ RI WKH 6HFRQG :RUOG :DU DQG WKH ZLGHVSUHDG SROLWLFDOIDOORXWRIWKHYHU\SUHVHQW&ROG:DU $V KHU HQJDJHPHQW ZLWK SURIHVVLRQDO WKHDWUH ZDQHG GXULQJ WKH V /LWWOHZRRG LQFUHDVLQJO\ GLUHFWHG KHU HQHUJLHV WRZDUGV
-2$1/,77/(:22'
ORFDOLVHG SURMHFWV WKDW HPSKDVLVHG FXOWXUDO GHPRFUDF\ ,Q SDUWLFXODU VKH LQLWLDWHG WKH XQUHDOLVHG )XQ 3DODFH SURMHFW 'HVFULEHG DV D ¶XQLYHUVLW\RIWKHVWUHHWV·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¶VOLFHRIOLIH· WUDJLFRPHGLHV WRKHUDPELWLRXVSODQVIRU¶DODERUDWRU\ RI SOHDVXUH· VKH VRXJKW WR GHI\ WKH VWXOWLI\LQJ SROLWH WUDGLWLRQ RI (QJOLVKWKHDWUHDQGWRFHOHEUDWHDQGDIILUPWKHFUHDWLYHDJHQF\DQG VRFLDO SRWHQWLDO RI FXOWXUDO LQWHUYHQWLRQ FROODERUDWLRQ DQG VKDUHG FROOHFWLYHLPDJLQLQJV 1RWHV
+ROGVZRUWK 1DGLQH ¶7KH\·G+DYH3LVVHGRQ0\*UDYH WKH$UWV &RXQFLODQG7KHDWUH:RUNVKRS· 1HZ7KHDWUH4XDUWHUO\ ² /LWWOHZRRG -RDQ ¶*RRGE\H 1RWH IURP -RDQ· LQ 0DURZLW] &KDUOHV 0LOQH 7RPDQG+DOH 2ZHQ HGV 7KH(QFRUH5HDGHU /RQGRQ 0HWKXHQ ,ELG )D[LQJSHUPLVVLRQIRU&OZ\G7KHDWU&\PUX·VUHYLYDORI2K:KDW D /RYHO\ :DU /LWWOHZRRG UHLWHUDWHG KHU DQWLSDWK\ WRZDUGV ¶EORRG\ DFWLQJ· 6HH 3DJHW 'HUHN ¶ ¶¶7KH :DU *DPH LV &RQWLQXRXV·· 3URGXFWLRQVDQG5HFHSWLRQVRI 7KHDWUH:RUNVKRS·V 2K:KDWD/RYHO\ :DU· 6WXGLHVLQ7KHDWUHDQG3HUIRUPDQFH ² /LWWOHZRRG -RDQ ¶$ /DERUDWRU\ RI )XQ· 1HZ 6FLHQWLVW 0D\ ,ELG
)XUWKHUUHDGLQJ %DUNHU &OLYH ¶-RDQ /LWWOHZRRG· LQ +RGJH $OLVRQ HG 7ZHQWLHWK &HQWXU\$FWRU7UDLQLQJ /RQGRQ 5RXWOHGJH ² *RRUQH\ +RZDUG 7KH7KHDWUH:RUNVKRS6WRU\ /RQGRQ 0HWKXHQ *RRUQH\ +RZDUG DQG 0DF&ROO (ZDQ HGV $JLW3URS WR 7KHDWUH :RUNVKRS 0DQFKHVWHU 0DQFKHVWHU8QLYHUVLW\3UHVV
<85</<8%,029
/LWWOHZRRG -RDQ -RDQ·V %RRN -RDQ /LWWOHZRRG·V 3HFXOLDU +LVWRU\ DV 6KH 7HOOV,W /RQGRQ 0HWKXHQ 1$',1(+2/'6:257+
<85</<8%,029 ²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·V¶PHWKRG· RU UDWKHU LWV GLVWRUWLRQ WKH 0RVFRZ $UW 7KHDWUH·V FRQFHSWV RI SHUH]KLYDQLH HPRWLRQDOH[SHULHQFH DQGSV\FKRORJLFDOUHDOLVP ZKLFK OXOOHGVSHFWDWRUVHPRWLRQDOO\UDWKHUWKDQLQYLWLQJWKHPWRWKLQN WKH LOOXVLRQ RI SROLWLFDO VWDELOLW\ UHSUHVHQWHG LQ VRFLDOLVW UHDOLVW SOD\V ,QVWHDG KH WXUQHG WR %UHFKW·V HSLF WKHDWUH ZKLFK IDYRXUHG D GHPRQVWUDWLYH UDWLRQDODQGEODWDQWO\WKHDWULFDODSSURDFK /\XELPRY·V EUHDN DZD\ IURP WKH 6WDQLVODYVN\¶V\VWHP· ZDV LQLWL DWHG E\ KLV DEKRUUHQFH IRU WKH SRPSRXV VHWV DQG FRVWXPHV GHPDQGHGE\VWDJHUHDOLVP 7KHFRDUVHO\GDXEHGEDFNGURSV DOOWKHVWDJHSURSHUWLHVVXFK DV JREOHWV EHDUGV ZLJV DOO GHFRU ZKLFK LPLWDWHV UHDO OLIH VXFKDVEXVKHV FORXGV KDPPRFNV ODZQV «DUHDVLUULWDWLQJ DVWKHJHQHUDOEHOLHILQWKHQHFHVVLW\RIPDNHXS WKHXVHRI SDLQW DQG SRZGHU RQ RQH·V IDFH ZKLFK LV PRVW RIWHQ QRQVHQVLFDO DQGTXLWHUHSXOVLYHRQPHQ $OOWKLVPHUHO\VHUYHGWRFUHDWHDFKHDSLPLWDWLRQRIUHDOLW\ :LWKKLV VWXGHQWV DW WKH 9DNKWDQJRY 7KHDWUH·V 6KFKXNLQ 6FKRRO /\XELPRY VWDJHG LQ %UHFKW·V 7KH *RRG 3HUVRQ RI 6]HFKZDQ ZKLFK HVWDE OLVKHG KLP DV D GLUHFWRU ,Q WKH ODVW GD\V RI .KUXVKFKHY·V¶WKDZ· KH ZDV DSSRLQWHG WR WKH SRVW RI $UWLVWLF 'LUHFWRU RI WKH 7KHDWUH RI 'UDPDDQG&RPHG\RQ7DJDQND6TXDUH 7KH7DJDQNDZDVH[SRVHG DV ZHUH DOO 6RYLHW WKHDWUHV WR WKH FRQWURO RI ERWK VWDWH DQG 3DUW\ RUJDQV ZLWK ZKRP /\XELPRY ZRXOG ILJKW RYHU KLV DUWLVWLF SURJUDPPH IRU WKH QH[W WZHQW\ILYH \HDUV 7KH FRQVWDQW WHQVLRQ
<85</<8%,029
EHWZHHQ KLP DQG WKH DXWKRULWLHV LQIRUPHG KLV DSSURDFK WR UHKHDUVDOV ZKHUH /\XELPRY RIWHQ FLWHG HSLVRGHV IURP GHEDWHV ZLWK RIILFLDOV WR H[SODLQ FHUWDLQ DFWLRQV RI D FKDUDFWHU WR DQ DFWRU 7KLV IXHOOHGKLVUHSXWDWLRQDVDGLVVLGHQW DYDQWJDUGHGLUHFWRU $W WKH 7DJDQND /\XELPRY IRUPHG D QHZ HQVHPEOH DQG FUHDWHG KLV RZQ UHSHUWRLUH HYHQWXDOO\ FRQVLVWLQJ RI PRUH WKDQ WKLUW\ SURGXFWLRQV 7KH\ LQFOXGHG QRW RQO\ SOD\V EXW DGDSWDWLRQV RI FODV VLFDO DQG FRQWHPSRUDU\ SURVH DQG SRHWU\ DQG HQFRPSDVVHG OLJKW GHVLJQ PXVLF FKRUHRJUDSK\ PLPH VRQJDQGGDQFH +LVLVDQ DXWHXU WKHDWUHZKHUHWKHGLUHFWRUPDQLSXODWHVWKHPDWHULDOIRUWKHSURGXF WLRQ DFFRUGLQJ WR KLV RZQ YLVLRQ 7KHDWUH LV D SODFH ZKHUH WKH IRXUWKZDOOEHWZHHQWKHVWDJHDQGWKHDXGLWRULXPLVEURNHQGRZQ 7KHDFWRUFRPPXQLFDWHVZLWKWKHDXGLHQFHDQGVWHSVEHVLGHWKHUROH KHSOD\VVRWKDWKLVRZQSHUVRQDOLW\LVHYLGHQWLQWKHSHUIRUPDQFH 7KH SRUWUDLWV RI IRXU JUHDW GLUHFWRUV RI WKLV FHQWXU\ ² 6WDQLVODYVN\ 0H\HUKROG 9DNKWDQJRY DQG %UHFKW ² GRPLQDWH QRW RQO\WKHIR\HURIWKH7DJDQNDWKHDWUH EXWDOVR/\XELPRY·VZRUN
<85</<8%,029
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·VFDSDELOLWLHV >«@7KHDFWRUDWWKH7DJDQND«LV DEOHWRVKLIWKLVVWDQFHDQG«GHILQHLWDQHZDWDQ\PRPHQW LQ WKH SHUIRUPDQFH WKH FKDUDFWHU WKH SHUVRQDOLW\ RI WKH DFWRUDQGWKHLUUHFHSWLRQE\WKHVSHFWDWRUPHHWDQGPHUJH LQWKLVVWDQFH 7KLV DSSURDFK PHDQV WKDW WKH OLQHV VSRNHQ DOZD\V VRXQG PHDQ LQJIXO LQ UHVSHFW RI WKH FXUUHQW VLWXDWLRQ LQ WKH FRXQWU\ )RU H[DPSOH GXULQJ SHUIRUPDQFHV LQ RI 7HQ 'D\V WKDW 6KRRN WKH :RUOG WKH DFWRUV VDLG RI D VFHQH SOD\HG ZLWK PXVLFKDOO VLQJHUV ¶7KLV LV ZKDW RXU SHRSOH QHHG· 7KH\ WKXV FRPPHQWHG QRW RQO\ RQ WKH LQWHUHVW LQ PXVLFKDOO HQWHUWDLQPHQW LQ WKH 8QLWHG 6WDWHV LQ WKH V EXW DOVR RQ WKH LQFUHDVLQJO\ FRPPHUFLDOLVHG FXOWXUH RI SRVWSHUHVWURLND 0RVFRZ 5HIOHFWLRQV RQ WKH UHYROX WLRQDU\SHULRGZHUHWKXVH[WHQGHGWRWKHSUHVHQW 7KH VWDJH GHVLJQ SUHYHQWV K\SRFULV\ DQG ¶IDOVH· DFWLQJ VLQFH LW HQVXUHV VLQFHULW\ E\ XVLQJ RQO\ DXWKHQWLF SURSHUWLHV DQG FRVWXPHV ¶7KH QDWXUDO LWHP WDNHQ IURP HYHU\GD\ OLIH VHW E\ WKH GHVLJQHU LQWR LQWHUDFWLRQZLWKWKHDFWRUVPDNHVDQ\IDOVHKRRGLQDFWLQJLPSRVVLEOH· /\XELPRY·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
<85</<8%,029
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·V PXOWLOD\HUHG SHUVRQDOLW\ /\XELPRY·VLGHDVFKDQJHGZLWKVRFLDODQGFXOWXUDOFKDQJH ZKLFK KH UHIOHFWHG LQ KLV SURGXFWLRQV +LV ZRUN DW WKH 7DJDQND IDOOV LQWR WKUHHEURDGSKDVHV WKHVRFLRSROLWLFDODJLWDWLRQRIWKH V ZKHQ KH HQFRXUDJHG DXGLHQFHV WR WDNH OLIH DQG SROLWLFV LQWR WKHLU RZQ KDQGV WKHWUDJLFPRGHRIWKH V ZKHQSHRSOHDSSHDUHGWKUHDW HQHG E\ VRFLHW\ DQG SROLWLFV WKH UHOLJLRXV YLVLRQV RI WKH V ZKHUHIDLWKLVSUHVHQWHGDVWKHVROHEHDUHURIDPRUDOYDOXHV\VWHP 7KLV ODVW SKDVH KDG ODUJHO\ EHHQ SUHSDUHG E\ /\XELPRY·V ZRUN DEURDGLQRSHUD /\XELPRY LV ILUVW DQG IRUHPRVW DQ LQQRYDWRU RI WKHDWULFDO IRUP EXW KLV PDMRU LQQRYDWLRQ LV KLV FUHDWLRQ RI D QHZ WKHDWULFDO JHQUH WKH SRHWLF WKHDWUH LQ ZKLFK DOO HYROYHV DURXQG RQH PHWDSKRU H[SUHVVHGLQWKHVHWGHVLJQ ,WLVQRWWKHOLWHUDU\ZRUNWKDWVWDQGVDW WKH FHQWUH RI D SURGXFWLRQ EXW WKH LGHD WKDW /\XELPRY GHYHORSV IURP D FRQWHPSRUDU\ UHDGLQJ RI WKLV ZRUN 7KH UK\WKP RI PRYH PHQWDQGZRUG DQGWKHSDFHDQGWHPSRRIWKHSURGXFWLRQ KHOSWR VXVWDLQWKLVLGHD /\XELPRY·VFRQFHUQKDVDOZD\VEHHQZLWKWKHLQGL YLGXDODQGSHRSOH·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
<85</<8%,029
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·VIXQFWLRQDVDSODFHZKHUHSHRSOHFRXOG ILQGPRUDODQGVSLULWXDOVXSSRUW
/\XELPRY <XU\ ¶$OJHEUDJDUPRQLL· $YURUD /\XELPRY .KXGR]KQLN VWVHQD HNUDQ .UHFKHWRYD 5LPPD ¶/\XELPRY· LQ 3RUWUHW\UH]KLVVHURY 0RVFRZ ,VNXVVWYR %HUH]NLQ ¶6WVHQRJUDILYHVKFK· 'HNRUDWLYQRHLVNXVVWYR /\XELPRY
*,25*,2675(+/(5
)XUWKHUUHDGLQJ %HXPHUV %LUJLW <XU\ /\XELPRY 7KLUW\
*,25*,2675(+/(5 ² 6WUHKOHU·V QDPH LV LQGLVVRFLDEOH IURP WKH 3LFFROR 7HDWUR GL 0LODQR ZKLFKKHIRXQGHGLQ ZLWK3DROR*UDVVL KLVPDQDJHUDVVRFLDWH XQWLO WKH V 7KH 3LFFROR ZDV WKH ILUVW SHUPDQHQW UHSHUWRU\ FRPSDQ\LQWKHFRXQWU\DORQJWKHOLQHVRIWKH0RVFRZ$UW7KHDWUH EUHDNLQJ ZLWK ,WDO\·V PDWWDWRUH WUDGLWLRQ RI WKHDWUH OHG E\ D VWDU DFWRUPDQDJHU 6WUHKOHU DQG *UDVVL·V EHOLHI LQ WKH VRFLDO UROH RI WKH WKHDWUH ZDV DOVR QHZ IRU ,WDO\ DQG WKH\ VKDUHG ZLWK 9LODU WKH LGHD WKDW KLJKTXDOLW\ DUW WKHDWUH ZDV IRU HYHU\ERG\ DQG ZDV D¶SXEOLF VHUYLFH· UDWKHU WKDQ D SULYLOHJH 6WUHKOHU 7KHLU FRQYHU JHQFHRISHUVSHFWLYHVZDVODUJHO\GXHWRWKHSRVWZDUFLUFXPVWDQFHV LQZKLFKWKHVHWKUHHPHQGHILQHGWKHLUDQWLIDVFLVW GHPRFUDWLFSRVL WLRQV 6WUHKOHU DQG *UDVVL VKRZLQJ D IDU PRUH SURQRXQFHG VRFLDOLVW SURILOHWKDQ9LODU 7KH 3LFFROR ZDV JXLGHG E\ 6WUHKOHU·V YLVLRQ RI ZKDW KH ZDV WR GHVFULEHLQ DVD¶VXSUDQDWLRQDO· WKDWLV (XURSHDQ WKHDWUH LELG $FFRUGLQJO\ LQWKH VKHVLJQHGXSWKH3LFFRORIRUDVHULHV RI SHUIRUPDQFHV IURP LWV UHFHQW UHSHUWRLUH DW WKH 2GpRQ LQ 3DULV .LQJ /HDU 7KH &KHUU\ 2UFKDUG DQG *ROGRQL·V ,O &DPSLHOOR 7KH /LWWOH 6TXDUH DQG $UOHFFKLQR VHUYLWRUH GL GXH SDGURQH $UOHFFKLQR WKH 6HUYDQW RI 7ZR 0DVWHUV 7KH 3LFFROR DOUHDG\KDGDPDMRUUHSXWDWLRQDFURVV(XURSH EXWLWVLPSDFWLQ3DULV ZDV LPPHQVH 6WUHKOHU VWDJHG *ROGRQL·V 9LOOHJJLDWXUD WULORJ\ IRUWKH&RPpGLH)UDQoDLVH ZKLFKSOD\HGLWDWWKH2GpRQLQ)UHQFK +LV VXSUDQDWLRQDO DVSLUDWLRQV JUHZ ZLWK WKH SURJUHVVLYH XQLILFD WLRQ RI (XURSH DQG WKH VXSSRUW KH KDG UHFHLYHG IURP SRZHUIXO SUR(XURSHDQV QRWDEO\ -DFN /DQJ IRXQGHU RI WKH DYDQWJDUGH
*,25*,2675(+/(5
1DQF\ )HVWLYDO RI
*,25*,2675(+/(5
WKHVHDRQZKLFKDVPDOOVKLSLVWRVVHGWRLQGLFDWHWKDWWKHWHPSHVW ZDVDPDJLFWULFN SK\VLFDOO\ E\$ULHO·VEDOOHWLFDQGDFUREDWLFIHDWVLQ WKHDLU FORZQ·VFORWKHVDQGPDNHXSZKLPVLFDOO\GHIODWLQJ3URVSHUR·V PDJLF JHVWXUDOO\ E\ &DOLEDQ·V DPELJXLW\ ZKR DW RQH PRPHQW LV D ¶VDYDJH· URXJKO\FDUU\LQJRXWDUFKDLFULWXDOVDQG DWDQRWKHU KDVWKH PDQQHULVPV RI D KDQGVRPH XUEDQH PDQ &DOLEDQ UHSUHVHQWV WKH VHUYLWXGHLPSRVHGE\FRORQLDOLVPDQGE\WKHDFWRU·VSURIHVVLRQ VLQFH 3URVSHURLVDQHPEOHPDWLFGLUHFWRUILJXUH $WWKHHQGRIWKHSURGXF WLRQ 3URVSHUR OLIWV KLV ZDQG DQG VQDSV LW LQ WZR D VLJQDO IRU WKH ZKROH VWDJH WR FROODSVH )OLHV DQG GUDSHV WXPEOH WR WKH IORRU WKH RUFKHVWUD SLW RQ ZKLFK WKH EOXH VLON RI WKH VHD KDG EHHQ GUDSHG FROODSVHV 7KH SRZHU RI WKH WKHDWUH WR SUHWHQG DQG FRQYLQFH LV UHYHDOHG DV LV LWV FDSDFLW\ WR LQIOXHQFH SHRSOH DQG KHOS WKHP WR UHFRQVWUXFW WKHLU OLYHV 'XULQJ 3URVSHUR·V PRQRORJXH WKH VWDJH LV UHDVVHPEOHG EHIRUH WKH VSHFWDWRUV· H\HV ² WKH SRZHU RI PDJLF WR EXLOG WR UHVWRUH WR LQVSLUH 7KH SURGXFWLRQ LQGLFDWHV DV ZHOO WKDW SROLWLFDO SRZHU FRQILJXUHG LQ 3URVSHUR LV QRW LPPXWDEOH EXW FDQ EHEURXJKWGRZQ 7KLV7HPSHVW LV6WUHKOHU·VVHFRQGSURGXFWLRQRIWKHSOD\ WKHILUVW LQ DQGIROORZVKLVSUDFWLFHRIUHWXUQLQJWRWH[WVWKDWKDYHNH\ PHDQLQJIRUKLP $UOHFFKLQR IRUH[DPSOH VDZVL[GLIIHUHQWYHUVLRQV IURP WKH ILUVW LQ IRU WKH 3LFFROR·V ILUVW VHDVRQ WR WKH ODVW LQ $OO UHIOHFWHG 6WUHKOHU·V GLIIHUHQW UHODWLRQVKLS WR WKH FKDQJLQJ WLPHV 7KHILUVWFHOHEUDWHGKLVUHYLYDORIFRPPHGLDGHOO·DUWH ZKLFKKDG IDOOHQLQWRREOLYLRQLQ,WDO\ DQGJDYHFRPPHGLD DHVWKHWLFVWDWXUHZKLOH VKDUSHQLQJLWVSRWHQWLDOIRUVRFLDOFRPPHQWDU\ DV'DULR)RZDVWR GR SDUWLFXODUO\LQWKH V ,WDOVRFHOHEUDWHGWKHSUHVHQFHRISROL WLFV LQ WKH WKHDWUH $UOHFFKLQR EHFRPLQJ 6WUHKOHU·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² 0DUFHOOR 0RUHWWL DQG )HUUXFLR 6ROHUL IURP DIWHU 0RUHWWL·VGHDWK ²HQDEOLQJ6WUHKOHUDQGKLVDFWRUVWREHFRPHYHUL WDEOHSLRQHHUVRIFRPPHGLD IRUWKHZRUOG 7KHFRPPHGLD LVZRYHQLQ WR 6WUHKOHU·V ZRUN HYHU\ZKHUH ZKHWKHU LQ IXOOEORZQ IRUP
*,25*,2675(+/(5
6WHSKDQR DQG 7ULQFXOR LQ 7KH 7HPSHVW DOOXVLYHO\ 7KH &KHUU\ 2UFKDUG RUHOXVLYHO\ /D9LOOHJJLDWXUD ,WVODXJKWHUEOHQGVLQZLWKWKH P\ULDG RI WRQHV WKDW PDNH 6WUHKOHU·V VXFK GHOLFDWHO\ QXDQFHG FRPSRVLWLRQV 6WUHKOHU·V UHYLWDOLVDWLRQ RI FRPPHGLD DFFRPSDQLHG KLV UHFRYHU\ RI *ROGRQLDVDVSLULWHGVRFLDOREVHUYHUDQGDQDGYRFDWHRIWKHSHRSOH FRQWUD*ROGRQL·VUHSXWDWLRQIRUSDURFKLDO9HQHWLDQLQWHUHVW 6WUHKOHU UHGLVFRYHUHG RWKHU UHJLRQDO GUDPDWLVWV %HUWROD]]L (O QRVW 0LODQ ² 2XU0LODQ ²SHUIRUPHGLQWKH0LODQHVHGLDOHFWLQ DQGUHYLYHG VHYHUDO WLPHV DQG 3LUDQGHOOR LQ ZKRVH DOOHJHGO\ 6LFLOLDQ TXLUNLQHVV DQG SXUHO\ IRUPDO VWUXFWXUHV KH IRXQG D VHGXFWLYH O\ULFLVP WUHDWLQJ VXFK VHULRXV WKHPHV DV KXPDQ IUDJLOLW\ DQG RSSUHVVLRQ +LV 3LUDQGHOOR F\FOH EHJDQ ZLWK 7KH 0RXQWDLQ *LDQWV LQ ZKLFK VDZ D 'VVHOGRUI YHUVLRQ LQ DQG D UHWXUQ 0LODQHVH YHUVLRQ LQ UHSXWHGWREH¶DPRQJWKHILQHVWRIDOOKLVVWDJLQJV· +LUVW ,WHQGHGZLWK$V
*,25*,2675(+/(5
DQGWKHZRUOGRIVNLQKHDGVDQGSXQNV *RQHULO IRULQVWDQFH VSRUWVD JUHHQ $IUR KDLUGR ,W DOOXGHV DV ZHOO WR V FDEDUHWV DQG V GLVFRV 7KHSURGXFWLRQLVVHWLQDFLUFXVULQJ VFHQRJUDSK\E\)ULJHULR ZKHUH WKH )RRO GUHVVHG OLNH D PRGHUQ FORZQ GRXEOHV DV D FORZQ OLNH &RUGHOLD WR LQGLFDWH WKDW FORZQHULH LV WKH VDWLULFDO UHYHUVH RI UHSUHVVLRQ DQG FRQWURO 1DUUDWLYH LV FRQYH\HG WKURXJK DQ HFRQRP\ RI PHDQV W\SLFDO RI 6WUHKOHU :KHQ *ORXFHVWHU LV EOLQGHG IRU H[DPSOH KLV KHDG LV SXVKHG EHQHDWK D WUDS GRRU LQ DQ LQQRFXRXV ORRNLQJ ZRRGHQ FRQWUDSWLRQ DQG GUDJJHG EDFN XS WR UHYHDO ODUJH EODFNVSRWV 7KLVFRQWUDSWLRQ¶WHOOV· RIPXOWLSOHVLWXDWLRQVDQG HYHQWV LQ D FRQGHQVHG VSDFH WKDW FRQWLQXDOO\ UHGHILQHV LWV LGHQWLW\ ,W LV D GUDZEULGJH DFDJH (GJDU·VFDYHDQGWKHFOLIIVRI'RYHURYHUZKLFK *ORXFHVWHULQWHQGVWRWKURZKLPVHOI %UHFKW·V GLDOHFWLFV RI SRZHU RQ WKH RWKHU KDQG WRRN 6WUHKOHU WKURXJK VHYHUDO YDULDWLRQV RI 7KH 7KUHHSHQQ\ 2SHUD WKH ODVW SHUIRUPHG LQ 3DULV LQ 7KH ILUVW UHKHDUVDOV IRU ZKLFK %UHFKWDWWHQGHGDWWKH3LFFROR ZDV DFFRUGLQJWR%UHFKW VXSHULRUWR KLV RZQ SURGXFWLRQ +LUVW ,W OHG WR 6WUHKOHU·V EHLQJ YLHZHG DV %UHFKW·V KHLU DQG KH ZDV RIIHUHG WKH GLUHFWRUVKLS GHFOLQHG RI WKH %HUOLQHU (QVHPEOH DIWHU %UHFKW·V GHDWK $IWHU 7KH *RRG3HUVRQRI6HW]XDQ UHYLVHGLQ DQG SUDFWLFDOO\ QRW D \HDU ZHQW E\ LQ WKH V DQG V ZLWKRXW D %UHFKW SURGXFWLRQ PRVW QRWDEO\ 6FKZH\N LQ WKH 6HFRQG :RUOG :DU 7KH([FHSWLRQDQGWKH5XOH *DOLOHR 0DKDJRQQ\ DQGSHUIRUPDQFHVRISRHWU\DQGVRQJ DPRQJWKHP,R%HUWROW%UHFKW DVHULHVRIWKUHHRIZKLFKWKHODVWSDUWDSSHDUHGLQ $OORIWKHP ILOWHUHG 6WUHKOHU·V LQVLJKWV LQWR %UHFKW WKURXJK DVSHFWV RI ,WDOLDQ FXOWXUH ,WDOLDQFDEDUHWZDVWKHWRXFKVWRQHIRU7KH7KUHHSHQQ\2SHUD DQG WKH HYHQLQJV RI SRHWU\ DQG VRQJ WKH YLVXDO KDUPRQ\ RI WKH ,WDOLDQ5HQDLVVDQFH VFHQRJUDSK\DQGFRVWXPHVE\'DPLDQL FRQWUD GLFWHGWKHEUXWDOLW\RIWKHUDLVRQG·pWDW H[SRVHGLQ*DOLOHR $OWKRXJK SURIRXQGO\ LQIOXHQFHG E\ %UHFKW 6WUHKOHU UHSHDWHGO\ DFNQRZOHGJHG KLV GHEW WR 6WDQLVODYVN\ IRU WKH LPSRUWDQFH RI HQVHPEOHDFWLQJ FORVHWH[WXDODQGVXEWH[WXDOUHDGLQJ DQGWKHLGHD RIFUHDWLQJFKDUDFWHUVZLWKELRJUDSKLHVDQGSV\FKRHPRWLRQDOPRWL YDWLRQV ,Q DOO KLV ZRUNV KH DFKLHYHG WKH DOOHJHGO\ LPSRVVLEOH ELQGLQJ WRJHWKHU WKH GUDPDWLF DQG WKH HSLF WKHDWUHV ² 6WDQLVODYVN\ DQG %UHFKW²FRQWUDU\WR%UHFKW·VWKHRU\RIWKHLUDQWLWKHVLV 7KLVZDV SDUWLFXODUO\VWULNLQJLQ6WUHKOHU·V VSURGXFWLRQV QRWOHDVWLQWKH GLDSKDQRXV7KH&KHUU\2UFKDUG DQG7KH/LWWOH6TXDUH ERWKFRPSRVL WLRQV LQ ZKLWH :KLWHQHVV LQ WKH ILUVW VLJQLILHV OLIH DQG PHPRU\ LQ
*,25*,2675(+/(5
FRQIOLFWZLWKHQFURDFKLQJKLVWRU\ ,QWKHVHFRQG LWLVWKHFRORXURI GUHDPV DVSLUDWLRQV DQG HYHU\GD\ VWUXJJOH 7KH &KHUU\ 2UFKDUG KDV D YDVW ZKLWH YHLO GLSSLQJ OLNH D FDQRS\ IURP WKH WRS RI WKH IURQW RI WKHVWDJHWRWKHEDFN DQGFRYHUHGLQDXWXPQOHDYHVWKDWFRQWLQXDOO\ IDOO LQ WKH ¶EUHH]H· %HORZ DUH VHYHUDO FKLOGVL]H WDEOHV DQG FKDLUV 'DPLDQL·V GHVLJQ UHFDOOLQJ WKH SDVW ,Q 7KH /LWWOH 6TXDUH D ZKLWH ZDOO VPDOOZLQGRZVDQGDVPDOOSXGGOH DOVR'DPLDQL QDUURZVSDFH VR WKDW DFWLRQ IUHTXHQWO\ RFFXUV DW WKH ZLQGRZV 6WRULHV DERXW WKH SHRSOH RI WKH VTXDUH DUH LQZDUGORRNLQJ DV ZHOO DV H[WURYHUWHG SOD\HGDVZHOODVWROG 6WUHKOHU·VFRPSDULVRQRIKLVWKHDWUHWRLQWHUORFNLQJ&KLQHVHER[HV LV UHOHYDQW WR DOO RI KLV SURGXFWLRQV 7KH ILUVW ER[ FRQWDLQV WKH LPPHGLDWH UHDOLW\ RI VWRU\ DQG SHRSOH 7KH VHFRQG FRQWH[WXDOLVHV WKHPVRFLRKLVWRULFDOO\DQGSROLWLFDOO\ 7KHWKLUGFRQFHUQVSDUWLFXODU LQVWDQFHV EXW DWWULEXWHV XQLYHUVDO YDOXHV WR WKHP 7KH IRXUWK ER[ FRQWDLQVWKHRWKHUWKUHHDQGPLJKWEHVDLGWRFU\VWDOOLVHHYHU\WKLQJ VHGLPHQWHG WKURXJK WKHP 6WUHKOHU ²
0\ WUDQVODWLRQ 6WUHKOHU H[SODLQV ¶:H ZHUH D JHQHUDWLRQ ZLWKRXW WHDFKHUV ZLWKRXWOHDGHUV« :HZHUH\RXQJ«LQKXPDQDQGWKHDWULFDO
-8/,$1%(&.
H[SHULHQFH $QG ZH ZHUH WKH RQHV ZKR ZHUH JRLQJ WR KDYH WR JXLGH ¶¶WKH RWKHUV·· 7KHVH¶¶RWKHUV·· OLYHG DSDUW LQ D ZRUOG RI WKHLU RZQ LQ ZKLFK WKHLU ZD\ RI ZRUNLQJ DQG WKHLU ZKROH DSSURDFK WR WKH WKHDWUH KDG EHFRPH GHFDGHQW 7KH\ ZHUH SURIRXQGO\ FXW RII IURP UHDOLW\ LQ HYHU\ VHQVH 7KH\ NQHZ QHLWKHU WKH ZRUGV WR VSHDN QRU WKH ZD\ WR VSHDNWKHP 7KH\ZHUHWU\LQJWRNHHSDOLYHDWKHDWUHZKLFKERWKIURPD KLVWRULFDODQGDKXPDQSRLQWRIYLHZZDVDWOHDVWILIW\\HDUVRXWRIGDWH· 6WUHKOHU HG ²3LFFROR7HDWUR 0LODQ 0RQHWD TXRWHG LQ(QJOLVKLQ+LUVW 0RUHWWLLQLWLDOO\UHIXVHGWRZHDUWKHXQFRPIRUWDEOH FRPPHGLD PDVNDQG SDLQWHG RQH RQ KLV IDFH LQVWHDG :KHQ 0RUHWWL JUDGXDOO\ FDPH WR ¶DFFHSWWKHW\UDQQ\RIWKHPDVN· KH¶ZDVWKHILUVWWRGLVFRYHUWKHHQGOHVV PRELOLW\RIWKHPDVN KHUHDOLVHGWKHIXOOH[SUHVVLYHIRUFHRILWVPRXWK DQGJUDGXDOO\GLVFRYHUHGKRZWRH[WHUQDOLVHDZKROHUDQJHRIHPRWLRQV ZKHQ KH OHW KLPVHOI EH¶¶FRQTXHUHG·· E\ WKH PDVN KH IRXQG OLEHUW\ LQ WKHUHVWULFWLRQ DQGWKHPRVWULJLGRIFRQYHQWLRQVUHOHDVHGKLV LPDJLQD WLYH FDSDFLW\ DOORZLQJ KLP WR UHDOLVH WKH PRVW YLWDO SDUW RI KLPVHOI · 6WUHKOHUTXRWHGLQ+LUVW ² 7KLVVWHSZDVSRVVLEOHEHFDXVH WKHVWLIIFDUGERDUGDQGOLQWPDVNVXVHGIRU6WUHKOHU·VILUVW$UOHFFKLQR ZHUH UHSODFHG E\ WKH IOH[LEOH OHDWKHU PDVNV GHVLJQHG E\ $POHWR 6DUWRUL IRU KLV VHFRQG ,W ZDV RQO\ WKHQ WKDW 0RUHWWL XQGHUVWRRG KRZ WKH PDVN WUDLQHGWKHDFWRUWRXVHKLVHQWLUHERG\IRUH[SUHVVLYHSXUSRVHV 6HH6KHYWVRYD 0DULD ¶&KHNKRYLQ)UDQFH ² 3URGXFWLRQV E\6WUHKOHU 0LTXHODQG3LQWLOLp· LQ'RQDOGVRQ ,DQ HG 7UDQVIRUPDWLRQV LQ0RGHUQ(XURSHDQ'UDPD /RQGRQ 0DFPLOODQ ²
)XUWKHUUHDGLQJ *XD]]RWWL *LRUJLR 7HRULD H UHDOWj GHO 3LFFROR 7HDWUR GL 0LODQR 7XULQ (LQDXGL +LUVW 'DYLG / *LRUJLR 6WUHKOHU &DPEULGJH &DPEULGJH 8QLYHUVLW\ 3UHVV 5RQIDQL 8JR ,R 6WUHKOHU &RQYHUVD]LRQL FRQ 8JR 5RQIDQL 0LODQ 5XVFRQL 6WUHKOHU *LRUJLR 3HUXQWHDWURXPDQR 0LODQ )HOWULQHOOL 0$5,$6+(97629$
-8/,$1%(&. ² 7KHWLWOHRIWKHWKLUGFKDSWHURI-RKQ7\WHOO·VERRNRQ-XOLDQ %HFN·V DYDQWJDUGH 1HZ
-8/,$1%(&.
SURWHVWV WKDW IXHOOHG PXFK RI WKHLU WKHDWUH 9LUWXDOO\ HYHU\ SDJH RI %HFN·V 7KH /LIH RI WKH 7KHDWUH LV D FODULRQ FDOO WR UHYROXWLRQ WKDW KRZHYHULPSUDFWLFDOSROLWLFDOO\ ZDVQHYHUWKHOHVVWKHOLIHEORRGRIWKH XQGHQLDEO\YLEUDQWWKHDWUHKHFUHDWHG %HFN·VFRQYLFWLRQWKDWRQO\D ¶1RQYLROHQW $QDUFKLVW 5HYROXWLRQ· FRXOG¶IHHG DOO WKH SHRSOH « VWRS DOO WKH ZDUV « RSHQ WKH GRRUV RI DOO WKH MDLOV >DQG@ « XQGR HDUO\GHDWK· %HFN ² PD\VHHPVLPSOLVWLF EXWLWGLGIXHO 3DUDGLVH 1RZ D SURGXFWLRQ ZKLFK FKDQJHG IRUHYHU RXU SHUFHSWLRQ RI ZKDW LW ZDV SRVVLEOH WR DFKLHYH LQ WHUPV RI DXGLHQFH SDUWLFLSDWLRQLQWKHWKHDWUH /LYLQJ7KHDWUHGHYRWHHVZRXOGSHUKDSVUHVHQWWKHVXJJHVWLRQWKDW %HFNDQG0DOLQD·VDFKLHYHPHQWVLQWKHWKHDWUHZHUHPRUHLPSRUWDQW WKDQ WKH OLYHV WKH\ OHG %HFN RIWHQ FODLPHG WKDW KH ZDV¶QRW LQWHU HVWHG LQ WKHDWUH· LELG ¶, GR QRW FKRRVH WR ZRUN LQ WKH WKHDWUH EXWLQWKHZRUOG· LELG KHZURWH ¶:HGRQ·WQHHGSOD\V ZHQHHG DFWLRQ· LELG %HFNDQG0DOLQDZHUHILUVWDQGIRUHPRVWUHYROX WLRQDULHVZKR WRWKHLUFUHGLW OLYHGHYHQWKHPRVWSULYDWHDVSHFWVRI WKHLU OLYHV LQ D PDQQHU WKDW ZDV FRQVLVWHQW ZLWK WKHLU FRQYLFWLRQV 7KH\ZHUHQRWMXVWSXEOLFILJXUHVZKREXUQWGUDIWFDUGVWRFKDOOHQJH WKHJRYHUQPHQW·VSRVLWLRQRQWKH9LHWQDPZDU WKH\DOVRHPEUDFHG MR\IXOO\ WKH LQFRQYHQLHQFH RI KDYLQJ ILIWHHQ RWKHUV VKDULQJ WKHLU FUDPSHG1HZ
-8/,$1%(&.
FDOO\DWZLQGRZVWRFU\¶+HOS· ZDVRIFRXUVHGHOLEHUDWHO\WKHDWULFDO DVKUHZGO\FDOFXODWHGPHDQVRIH[FLWLQJWKHLQWHUHVWRIWKHJURZLQJ QXPEHUVRIMRXUQDOLVWVDQGWHOHYLVLRQFUHZVWKDWKDGJDWKHUHGRQWKH VWUHHW EHORZ %\ DFWLQJ ZLWK KDELWXDO SUHSRVWHURXVQHVV %HFN DQG 0DOLQDKDGPDQDJHGWRFRQYHUWDURXWLQHGLVSRVVHVVLRQLQWRDGUDPD DERXWIUHHGRPDQGLPSULVRQPHQW :KHQ5REHUW%UXVWHLQVSRNHRI 7KH /LYLQJ 7KHDWUH SURGXFWLRQ RI -DFN *HOEHU·V 7KH &RQQHFWLRQ DV DQ DWWHPSW WR ¶EUHDN GRZQ EDUULHUV EHWZHHQ ZKDW ZDV JRLQJRQRQVWDJHDQGZKDWZDVJRLQJRQLQOLIH· 7\WHOO KHFRXOGVFDUFHO\KDYHLPDJLQHGKRZPXFKWUXHUWKLVZRXOGEHRI %HFNDQG0DOLQD·VOLYHVWKDQRIWKHLUWKHDWUH ,I%HFNDQG0DOLQD·VOLYHVRIWHQWRRNRQDWKHDWULFDODVSHFW WKHLU WKHDWUHDOVREHJDQV\VWHPDWLFDOO\WRUHVHPEOHUHDOOLIH %HFNKDGORQJ UDLOHG DJDLQVW %URDGZD\ ZKHUH WKH ¶WRQH RI YRLFH LV IDOVH WKH PDQQHULVPV DUH IDOVH WKH VH[ LV IDOVH· %HFN +H KDG GHFODUHG WKDW KH¶ZDQWHG WR FKDQJH WKH ZKROH PHWKRG RI DFWLQJ· %LQHU DQG DV FKDQJLQJ ZKROH PHWKRGV ZDV WKH UDLVRQ G·rWUH RIWKH/LYLQJ7KHDWUH WKHDUWRIDFWLQJZDVQRWLPPXQHWRWKH XQLYHUVDOVZHHSRIWKHLUUHIRUPV %HFNDQG0DOLQDRSSRVHGWKHDUWL ILFLDOLW\ RI %URDGZD\ QRW ZLWK D PRUH UHDOLVWLF VW\OH RI DFWLQJ EXW UDWKHUZLWKWKHFRPSOHWHDEVHQFHRIVW\OH ,QZKDWHYHQWXDOO\FDPH WREHFDOOHG¶QRQILFWLRQDODFWLQJ· WKHDFWRUVZHUHUHTXLUHGWR DSSHDU QRWXQGHUWKHFRYHURIWKHLUFKDUDFWHUVEXWDVWKHPVHOYHV 7KHEHJLQQLQJVRIWKLVFKDQJHZHUHGHWHFWDEOHLQ7KH&RQQHFWLRQ ZKHUHWKHMD]]PXVLFLDQV ZKRDSSHDUHGVLPSO\DVPXVLFLDQV EHFDPH PRGHOVRIDXWKHQWLFLW\IRUWKHDFWRUV :KHQ D MD]] PXVLFLDQ SOD\V KLV PXVLF KH HQWHUV LQWR SHUVRQDO FRQWDFW ZLWK WKH SXEOLF ZKHQ KH JRHV KRPH « WKHUH LV QR GLIIHUHQFH EHWZHHQ WKH ZD\ KH LV QRZ DQG WKH ZD\ KH ZDV RQ VWDJH« 7KH &RQQHFWLRQ UHSUHVHQWHG D YHU\ LPSRUWDQWDGYDQFHIRUXVLQWKLVUHVSHFW IURPWKHQRQ WKH DFWRUVEHJDQ WRSOD\WKHPVHOYHV LELG %\SOD\LQJWKHLUGUXJGHSHQGHQWFKDUDFWHUVDVWKHPVHOYHV WKHDFWRUV PDGHWKHSRLQWWKDWWKHDGGLFWV· QHHGIRUD¶IL[· ZDVQRWDQLVRODWHG HYLOWKDWSHRSOHFRXOGFRPSODFHQWO\FRQGHPQEXWZDVV\PSWRPDWLF RIDSUREOHPWKDWSHUYDGHGVRFLHW\DVDZKROH 7KLV ZDV FDUULHG IRUZDUG LQ WKH /LYLQJ 7KHDWUH·V QH[W PDMRU SURGXFWLRQ .HQQHWK%URZQ·V7KH%ULJ DSOD\VHWLQDEUXWDOO\ UXQ0DULQH&RUSVSULVRQZKLFK IRU%HFN SURYLGHGDYLYLGGLVWLOOD
-8/,$1%(&.
WLRQ RI WKH GXUHVV KH EHOLHYHG FKDUDFWHULVHG OLIH DV D ZKROH ,Q 7KH %ULJ WKH DPDOJDPDWLRQ RI WKHDWUH DQG UHDO OLIH ZDV DFKLHYHG E\ FRPSHOOLQJWKHDFWRUVZKRSOD\HGWKHSULVRQHUVJHQXLQHO\WRVXIIHU WKH VDGLVP RI WKH SULVRQ JXDUGV 5HKHDUVDOV ZHUH FRQGXFWHG LQ DFFRUGDQFH ZLWK XQUHDVRQDEO\ VWULFW UXOHV ZKLFK LI EURNHQ ZHUH SXQLVKHG ZLWK VRXOGHVWUR\LQJ ZRUN GHWDLOV ,I WKH WHQVLRQ GXULQJ WKH GHOLEHUDWHO\ EDUEDURXV VHYHQKRXU VHVVLRQV RI DFWRU WUDLQLQJ EHFDPHWRRJUHDW WKHDFWRUVFRXOG¶FU\IRUPHUF\· ZKHUHXSRQWKH\ ZHUHJLYHQDILYHPLQXWHEUHDN 7KHEULJKDGEHFRPHDUHDOLW\WKDWZDVEHLQJWHVWHGE\WKH DFWRUV GD\ DIWHU GD\ 7KHLU EHKDYLRXU ZDV EHFRPLQJ WKH EHKDYLRXURIYLFWLPVDQGWRUPHQWRUV« -XGLWKGLGQRWZDQWWRVXEVWLWXWH VKHZDQWHGWKHDFWRUV WRH[SHULHQFHGLUHFWO\ %\WKLVPHDQVWRR WKHSXEOLFZRXOG EH DEOH WR IHHO LPPHGLDWHO\ DQG GLUHFWO\ WKH KRUURU RI WKH EULJ« 7KH %ULJ WXUQHG LQWR D PRQVWURXV FUHDWLRQ WKH DFWRUVKDGQHYHUIHOWPRUHGHIHQFHOHVVLQWKHLUOLYHV« 7KHLU SK\VLFDOZHOOEHLQJZDVEHLQJWKUHDWHQHGGXULQJDQ\JLYHQ SHUIRUPDQFH ,ELG ²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¶, DP WKH HPERGL PHQWRI5LFKDUG,,,· RUDVD%UHFKWLDQDFWRU ¶,DP0RWKHU &RXUDJH EXW ,·P DOVR +HOHQ :HLJHO SOD\LQJ &RXUDJH· WKH DFWRU LQ WKH /LYLQJ 7KHDWUH VD\V ¶, DP -XOLDQ %HFN DQG , SOD\-XOLDQ%HFN· ,ELG ,WIROORZHGIURPWKHVHDWWHPSWVWRFUHDWHDSHUIRUPDQFHHQYLURQ PHQWLQZKLFKWKHDFWRUVFHDVHGWREHDFWRUVWKDWWKHDXGLHQFH WRR
-8/,$1%(&.
ZRXOG HYHQWXDOO\ FRPH XQGHU SUHVVXUH WR UHOLQTXLVK WKHLU FRQYHQ WLRQDO SDVVLYLW\ DQG HQJDJH PRUH DFWLYHO\ ZLWK WKH GUDPD 7KH PRWLYDWLRQIRUWKLVZDVSROLWLFDO DXGLHQFHVKDGWR¶GLVFRYHUWKDWWKH\ DUHQRORQJHUWKH¶¶SULYLOHJHGFODVV·· WRZKRPWKHSOD\LV¶¶SUHVHQWHG·· EXW DUH QHHGHG E\ WKH DFWRUV IRU WKH YHU\ DFFRPSOLVKPHQW RI WKH SOD\· LELG 7R WKLV HQG 0\VWHULHV EHJDQ ZLWK D VLQJOH DFWRU VWDQGLQJVLOHQWO\WRDWWHQWLRQRQDEDUHVWDJH ZDLWLQJIRUVRPHVRUW RI DXGLHQFH UHDFWLRQ WR EHJLQ WKH SOD\ ,Q WKH ILUVW SHUIRUPDQFH RI 0\VWHULHV LQ3DULV DPHPEHURIWKHSXEOLFUHVSRQGHGWRWKHDFWRUV· SURYRFDWLRQ E\ SLOLQJ VHDWV RQH RQ WRS RI WKH RWKHU WR PDNH D PRXQWDLQ WKDW KH WKHQ FOLPEHG VFUHDPLQJ REVFHQLWLHV ,Q %UXVVHOV DOPRVW ILIW\ PHPEHUV RI WKH SXEOLF ¶GLHG· ZLWK WKH DFWRUV LQ WKH GLVWLQFWO\ $UWDXGLDQ SODJXH VFHQH ZLWK ZKLFK WKH SHUIRUPDQFH HQGHG ,Q7ULHVWH 0\VWHULHV ZDVEDQQHGEHFDXVHWKHDXGLHQFHUHIXVHG WROHDYHWKHWKHDWUHGHVSLWHEHLQJRUGHUHGWRGRVRE\WKHSROLFH $V WKH DFWLRQ RI D /LYLQJ 7KHDWUH SHUIRUPDQFH EHFDPH PRUH ULWXDO WKDQQDUUDWLYH DFWLQJEHFDPHOHVVDPDWWHURIPDNLQJEHOLHYHWKDQRI OLYLQJLQWHQVHO\LQWKHSUHVHQW (QFRXUDJHGE\WKHH[WHQWWRZKLFKDXGLHQFHVKDGUHDGLO\SDUWLFL SDWHG LQ 0\VWHULHV WKH /LYLQJ 7KHDWUH ZHQW RQ WR GHVLJQ 3DUDGLVH 1RZ DVDQHYHQWWKDWZRXOGUHO\DOPRVWHQWLUHO\RQWKHDXGLHQFHIRU LWV PRPHQWXP 3DUDGLVH 1RZ ZDV SXW WRJHWKHU FROOHFWLYHO\ E\ WKH FRPSDQ\ DV D VWUXFWXUHG PHGLWDWLRQ RQ WKH PDQQHU LQ ZKLFK D VKDFNOHG VRFLHW\ FRXOG DFKLHYH (O\VLDQ OLEHUDWLRQ 7KH SXUSRVH RI WKHGUDPDZDVWRHQVXUHWKDWWKHDXGLHQFHZRXOGH[SHULHQFHUDWKHU WKDQ PHUHO\ EHDU ZLWQHVV WR WKH HYROXWLRQ RI HPDQFLSDWLRQ 7KH GUDPD FRPSULVLQJ D VHULHV RI VWDJHV RU ¶UXQJV· WKDW VSDQQHG WKH ZKROH JDPXW RI KXPDQ H[SHULHQFH IURP ERQGDJH WR GHOLYHUDQFH ZDV GHVLJQHG VXFK WKDW SURJUHVV IURP RQH OHYHO WR WKH QH[W ZDV GHSHQGHQWRQWKHLPSHWXVWKHDFWRUVUHFHLYHGIURPWKHDXGLHQFH 7KH PRPHQWV ZKHUH WKH DXGLHQFH LV LQYLWHG WR JR WR WKH QH[W UXQJ DUH HQWLUHO\ RSHQ WR VXJJHVWLRQV 7KH FRPSDQ\ GRHVQRWDWWKLVSRLQWVKLIWLWVUROHIURPWKDWRIJXLGHWRWKDW RI OHDGHU EXW WULHV WR GHYHORS WKH DXGLHQFH·V LGHDV WR WKHLU IXOOSRWHQWLDO ,ELG 3DUDGLVH 1RZ EHJDQ ZLWK D FDWDORJXH RI SURKLELWLRQV ¶, DP QRW DOORZHGWRVPRNHPDULMXDQD· ¶,DPQRWDOORZHGWRWUDYHOZLWKRXWD SDVVSRUW· WKDW ZHUH JUDGXDOO\ RYHUFRPH WKURXJK WKH FRXUVH RI WKH GUDPD OHYHO E\ OHYHO DW WKH LQVWLJDWLRQ RI WKH DXGLHQFH ¶, DP QRW
3(7(5%522.
DOORZHG WR WDNH P\ FORWKHV RII · IRU LQVWDQFH ZDV D UHVWULFWLRQ WKDW ZDV WDFNOHG LQ WKH VRFDOOHG¶5LWH RI 8QLYHUVDO ,QWHUFRXUVH·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·VXQGRLQJ $WPLGQLJKW 6HSWHPEHU RQERDUGD VKLS %HFN DQG 0DOLQD DQQRXQFHG WKDW WKH\ ZHUH OHDYLQJ WKH FRPSDQ\ WKH\ KDG IRUPHG 7KH FRPSDQ\ KDG OLYHG WRJHWKHU LQ H[LOH WKH\ KDG HDWHQ DQG VOHSW WRJHWKHU WKH\ KDG HYHQ EHHQ WR SULVRQ WRJHWKHU %XW ILQDOO\ WKH\ GLVEDQGHG XQDEOH WR PDNH SROLWL FDOO\YLDEOHWKHLQGRPLWDEOHYLVLRQWKDWKDGIXHOOHGVRPXFKRIWKHLU UHGRXEWDEOHDUWLVWLFVXFFHVV )XUWKHUUHDGLQJ %HFN - 7KH/LIHRIWKH7KHDWUH 6DQ)UDQFLVFR /LPHOLJKW(GLWLRQV %LQHU 3 7KH/LYLQJ7KHDWUH 1HZ
3(7(5%522. ² 2I DOO WKH GLUHFWRUV GLVFXVVHG LQ WKLV ERRN 3HWHU %URRN LV SHUKDSV WKHPRVWHOXVLYH WKHPRVWPXOWLIDFHWHG WKHPRVWGLIILFXOWWRFKDUDF WHULVH LQ D IHZ SDJHV :KHUHDV LW LV SRVVLEOH WR ORFDWH WKH ZRUN RI PRVW GLUHFWRUV ZLWKLQ WKH RUELW RI FHUWDLQ SHW SUHRFFXSDWLRQV %URRNKDVGHOLEHUDWHO\HPEDUNHGXSRQDVHULHVRIUDGLFDOO\GLVVLPLODU SURMHFWV WKURXJK WKH FRXUVH RI KLV ORQJ FDUHHU +H KDV ZRUNHG RQ
3(7(5%522.
HYHU\WKLQJIURP:HVW(QGPXVLFDOV 6KDNHVSHDUHDQGUDPDDQGRSHUD WRLPSURYLVHGVFHQDULRVEXLOWDURXQGSDLUVRIVKRHVLQWKHGHSWKVRI WKH6DKDUD ,QGHHG LIWKHUHLVDVLQJOHSULQFLSOHWKDWHQFDSVXODWHVWKLV IRUPLGDEOHUDQJHRIZRUN LWLVWKDWWKHPRPHQWDFHUWDLQPRGHRI ZRUNLQJLVVXFFHVVIXO LWPXVWEHDEDQGRQHGOHVWLWRVVLI\LQWRDKDELW
3(7(5%522.
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²HDFKPRYLQJ TXLFNO\ IURP 6LQDWUD WR &DUXVR DQG WKHQ WR 0LFN -DJJHU $V WKH DFWRUVPRYHGEHWZHHQWKHVHUDGLFDOO\GLIIHUHQWLPSHUVRQDWLRQVWKH\ OHDUQW WKH YHU\ %UHFKWLDQ DUW RI UDSLGO\ HPERG\LQJ DQG UHOLQ TXLVKLQJ FKDUDFWHU $ VLPLODU ¶DOLHQDWLRQ· HIIHFW ZDV DFKLHYHG E\ KDYLQJDPRQN·VVXLFLGHSOD\HGRXWLQIURQWRIDQXPEHURIDFWRUV ZKR ZHUH FRDFKHG WR UHVSRQG WR WKH LPSURYLVDWLRQ E\ PDNLQJ VWDWHPHQWVSUHIDFHGE\WKHLUQDPH WKHSODFHDQGGDWH ,Q %URRN FKRVH WR GLUHFW D SURYRFDWLYH DQG FRPSHOOLQJ SURGXFWLRQRI$0LGVXPPHU1LJKW·V'UHDP DW6WUDWIRUGIRUQRRWKHU UHDVRQ EXW WKDW¶LW ZDV VXFK D FRQWUDVW ZLWK HYHU\WKLQJ , KDG EHHQ GRLQJVLQFH · +XQWDQG5HHYHV ,QPDUNHGFRQWUDVW WR WKH ODUJHO\ DQDO\WLFDO PDQQHU LQ ZKLFK %URRN KDG ZRUNHG RQ .LQJ/HDU LQ FKDUDFWHULVDWLRQZDVQRZVRXJKWWKURXJKDGHFLG HGO\ DQWLLQWHOOHFWXDO VHULHV RI SK\VLFDO H[HUFLVHV VXFK DV SDVVLQJ EDWRQV DURXQG LQ D FLUFOH DQG PDNLQJ VRXQGV WR VHDUFK RXW WKH LPSXOVHV EHKLQG WKH ZRUGV RI 6KDNHVSHDUH·V SOD\ 7KH DFWRUV ZHUH WROG WKDW ¶OLVWHQLQJ WR WKH UK\WKPV RI WKH ZRUGV UDWKHU WKDQ DWWHQGLQJ WR WKHLU OLWHUDO PHDQLQJ ZLOO WDNH RQH WRZDUGV D GHHSHU XQGHUVWDQGLQJ· 6HOERXUQH %URRNWDSVRQDGUXPWZRGLIIHUHQWLDWHGUK\WKPV ZKLFKKH ZDQWV UHVSHFWLYHO\ IURP WKH PHFKDQLFDOV DQG WKH FRXUWLHUV $V D UHVXOW 7KHVHXV· ¶7KH ZDOO PHWKLQNV EHLQJ VHQVLEOH VKRXOGFXUVHDJDLQ· KDVWKHKHLJKWHQHGDUURJDQFHRIDVZLIW DQG DVLI SULQFHO\ZLW ZKLOH3\UDPXV· UHSO\¶1R LQWUXWK VLU KHVKRXOGQRW· ZLWKLWVKHDY\URXQGYRFDEOHV KDVPRUH WKDQHYHUWKHSHGHVWULDQJDLWRIWKHVWXUG\%RWWRP ,ELG
3(7(5%522.
,QRUGHUWRVHDUFKRXWWKHUK\WKPVLQZKLFKWKHGHHSVWUXFWXUHVRI PHDQLQJ ZHUH HQFRGHG %URRN KDG WKH DFWUHVV SOD\LQJ +HOHQD VLQJ KHU¶2ZHDU\QLJKW· VSHHFK KHKDGWKHORYHUVUHFLWHWKHLUOLQHVZKLOH FOLPELQJ XS DQG GRZQ YDULRXV VHWV RI ODGGHUV DQG WKH %RWWRP3\UDPXV¶'HDWK· VSHHFKZDVEURNHQXSDQGUHDGVLPXOWDQH RXVO\ E\ WKUHH DFWRUV %\ JLYLQJ XS WKH GLUHFW SXUVXLW RI PHDQLQJ %URRN DFKLHYHG D SHUIRUPDQFH WKDW ZDV LQ WKH RSLQLRQ RI VRPH EHWWHU VSRNHQ WKDQ PRVW SHRSOH KDG NQRZQ 7KH SURGXFWLRQ EHFRPHV RQH RI WKH 5R\DO 6KDNHVSHDUH &RPSDQ\·V JUHDWHVW VXFFHVVHV %URRN UHVSRQGHG WR KLV VXFFHVV W\SLFDOO\ E\ OHDYLQJ +H OHIW WKH 56& DQG ZHQW WR 3DULV ZKHUH KH VHW XS KLV RZQ FRPSDQ\ WKH &HQWUH,QWHUQDWLRQDOGH&UpDWLRQV7KpkWUDOHV :LWKDQHZO\DVVHP EOHG LQWHUQDWLRQDO FDVW %URRN SURGXFHG D QXPEHU RI H[SHULPHQWDO SURGXFWLRQV LQFOXGLQJ 2UJKDVW D SHUIRUPDQFH ORRVHO\ EDVHG RQWKH3URPHWKHXVP\WK 7KHSHUIRUPDQFHH[WHQGHGWKHZRUNRQ VRXQG DQG UK\WKP LQ $ 0LGVXPPHU 1LJKW·V 'UHDP E\ DEDQGRQLQJ FRQYHQWLRQDO ODQJXDJH DOWRJHWKHU 7KH DFWRUV H[SUHVVHG WKHPVHOYHV WKURXJK D FRPELQDWLRQ RI FKDQWV FULHV DQG JXWWXUDO KRZOV WKH SURGXFWRI 7HG+XJKHV·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²VRPHER[HV VRPHVWLFNV DSDLURIROGERRWV >0DUWKRXUHW@ZDVRQWKHFDUSHW VWUXJJOLQJZLWKDFDUGERDUG ER[ 7KH FURZG IL[HG RQ WKH ER[ ZLWK WRWDO DWWHQWLYHQHVV 7KHUH ZDV D VWLOOQHVV DERXW WKH SHRSOH DQ H[SHFWDQF\ :KDW·VLQWKHER[« +HOHQ 0LUUHQ ZHQW RQ WKH FDUSHW EORZLQJ RQ D VOLGH ZKLVWOH 6KHWDONVZLWKWKHZKLVWOHWR0LULDP*ROGVFKPLGW ZKRUHSOLHVZLWKDIOXWH« :KDWQH[W"1RERG\NQHZ %URRNZDVQ·WVD\LQJDQ\WKLQJ HLWKHU (QWHU D YRLG 1R DFWRU ZDV PRYLQJ 8QWLO .DWVXODV
3(7(5%522.
VXGGHQO\WRRNRIIKLVKXJHDUP\ERRWVDQGSODFHGWKHPLQ WKHFHQWUHRIWKHFDUSHW« +HLOSHUQ ² 7KLV ZDV WKHDWUH VKRUQ RI DOO VRSKLVWLFDWLRQ GHYRLG RI FXVWRP DQG WUDGLWLRQ 7KHDFWRUVIDFHGWKHLUEHPXVHGDXGLHQFHVGHIHQFHOHVVO\² DQG ZHUH DEOH WR IRUJH RXW RI WKHLU PLQLPDO UHVRXUFHV VRPHWKLQJ WKDWKDGWKHVLPSOLFLW\DQGFODULW\RIDVKDUHGHYHQW 7KLV IRU%URRN ZDVWKHHVVHQFHRIWKHDWUH 7KLVZDVWKHFRUHWKDWKDG LQWKH:HVW EHHQREVFXUHGE\IRUPDOLW\DQGDIIHFWDWLRQ ,Q %URRNVWDJHGDQLQHKRXUYHUVLRQRIWKH,QGLDQHSLF /H 0DKDEKDUDWD 7KH SHUIRUPDQFH ZDV LQ VRPH ZD\V WKH SURGXFW RI D OLIHWLPH·VZRUNLQWKHWKHDWUHIRULWFRQWDLQHGHOHPHQWVWKDWGHULYHG IURP HDFK RI WKH YDULRXV VWDJHV RI %URRN·V FDUHHU 7KH PDQQHU LQ ZKLFK&LHVODNSOD\HG'KULWLUDVKWUD IRULQVWDQFH ZDVUHDOLVWLFLQWKH EHVW6WDQLVODYVNLDQWUDGLWLRQ LQFRQWUDVW 'XVVDVDQD·VGHDWKZDVSOD\HG ZLWK JURWHVTXH H[DJJHUDWLRQ ² DQG WKHQ XQGHUFXW ZLWK D SHUIHFWO\ %UHFKWLDQ VSHHFK ZKLFK DGGUHVVHG WKH DXGLHQFH GLUHFWO\ SRLQWLQJ RXWWKDWZKDWWKH\ZHUHZDWFKLQJZDVRQO\WKHDWUH 7KHPLUDFOHRI WKH SURGXFWLRQ ZDV WKDW LW DOORZHG WKHVH VXSSRVHGO\ FRQWUDGLFWRU\ SOD\LQJ VW\OHV WR RSHUDWH LQ FRQMXQFWLRQ ZLWK RQH DQRWKHU ZLWKRXW PXWXDOO\ QHXWUDOLVLQJ RQH DQRWKHU 7KH GHDWK RI *DQJD·V FKLOG ZDV SOD\HG LQ PLPH D PXVLFDO LQVWUXPHQW GRXEOHG DV DQ HOHSKDQW·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·V ZRUN WKHPDVWHUSLHFHWKDWGHILQHGHYHU\WKLQJWKDWZHQWEHIRUHDQGDIWHU 6LQFH WKHQ %URRN KDV SURGXFHG D QXPEHU RI QRWDEOH SURGXFWLRQV LQFOXGLQJ 7KH 7HPSHVW ZKLFK IHDWXUHG D EODFN 3URVSHUR DQG ZKLWH &DOLEDQ 4XL HVW Oj D YHUVLRQ RI +DPOHW ZKLFK ZDV LQWHUVSHUVHGZLWKTXRWDWLRQVIURP$UWDXG DQG/H&RVWXPH D VWRU\VHWLQ6RSKLDWRZQDQGSOD\HGZLWKDOOWKHSURIRXQGVLPSOLFLW\ WKDWKDGLQIRUPHGWKH /HV,NV ZKLFKDOVRKDGDVPDOOFDVW XVHG QRVFHQHU\DQGKDGYHU\IHZSURSV ,I%URRNKDVILQDOO\VHWWOHGRQD VW\OHLWLVWKLV WRWHOODVWRU\ZLWKGHWDFKPHQWDQGFODULW\
$8*8672%2$/
)XUWKHUUHDGLQJ %URRN 3 7KH(PSW\6SDFH /RQGRQ 3HQJXLQ%RRNV ³³ 7KH6KLIWLQJ3RLQW 1HZ
$8*8672%2$/ ² 1RW PDQ\ GLUHFWRUV KDYH H[SORUHG WKH TXHVWLRQ DV WR KRZ WKHDWUH FDQ FKDQJH VRFLHW\ ZLWK DV PXFK LQQRYDWLYH SUDJPDWLVP DV WKH %UD]LOLDQ $XJXVWR %RDO 1RW PDQ\ GLUHFWRUV KDYH KDG DV PXFK UHDVRQ %RDOOLYHGWKURXJKWKH HOHFWLRQV WKHFRXSRI DQG WKHUHSUHVVLRQWKDWIROORZHGWKHLQIDPRXV$,OHJLVODWLRQRI ,Q KHZDVDUUHVWHG WRUWXUHGDQGH[LOHG 7KHLQWHUHVWRI%RDO·V WKHDWUH LV WKH OLQN WKDW H[LVWV EHWZHHQ KLV ZRUN DQG KLV FKDQJLQJ SROLWLFDO VWDWXV DV WKH VLWXDWLRQ DURXQG KLP DOWHUHG VR WRR GLG WKH IRUP RI KLV WKHDWUH ZKLFK KDG WR DGDSW WR WKH YDU\LQJ UHVWULFWLRQV LPSRVHGE\WKHJRYHUQPHQW ¶>7@KHDWUHLVDZHDSRQ· %RDO L[ %RDO RQFH REVHUYHG DQG KH PHDQW WKLV TXLWH OLWHUDOO\ KLV LQWHQWLRQ ZDVQRWPHUHO\WRGLVFXVVRSSUHVVLRQRUWRYRLFHKLVSURWHVWEXWWR XVHWKHDWUHWRFRPEDWRSSUHVVLRQDFWLYHO\ -XVWDVZHDSRQVKDYHWREH GHSOR\HGVWUDWHJLFDOO\VRDVWRJOHDQWKHEHVWSRVVLEOHDGYDQWDJHIURP FRQIURQWDWLRQV VR%RDO·VWKHDWUHZDVQRWMXVWDQDEVWUDFWYHKLFOHIRU LQWHOOHFWXDOLQGLJQDWLRQ ,WZDVDPHDQVRIZDJLQJJXHUULOODZDUIDUH ZLWKDOOWKHJXLOHDQGVKUHZGQHVVWKDWVXFKDWHUPLPSOLHV %RDO·VLVD FDUHHU OLWWHUHG ZLWK ZLO\ DGDSWDWLRQV WR FLUFXPVWDQFHV (DFK QHZ FRQVWUDLQWLVWKHVHHGRIDFUHDWLYHUHVSRQVHWKDWLVDVSROLWLFDOO\DVWXWH DVLWLVIRUPDOO\LQJHQLRXV 7KHUHVXOWLVDERG\RIZRUNWKDWXQLWHV DUWLVWLF LQYHQWLYHQHVV DQG SROLWLFDO FRPPLWPHQW LQ D PDQQHU WKDW LV TXLWHXQSDUDOOHOHG ,QWKHHDUO\ V%RDOWRXUHG%UD]LOH[WHQVLYHO\ZLWKWKH$UHQD 7KHDWUH RI 6mR 3DXOR SOD\LQJ H[WUDYDJDQW DFWLYLVW DJLWSURS WR WKH SRRU 7KHVHZHUHIODPER\DQW SURVHO\WLVLQJPLVVLRQVWKDWWDUJHWHGWKH
$8*8672%2$/
GRZQWURGGHQ DQG XUJHG WKHP WR ULVH XS DJDLQVW RSSUHVVLRQ %RDO VHOHFWHG KLV DXGLHQFHV FDUHIXOO\ KH FKRVH VKDQWLHV LQ WKH LQQHUFLW\ DUHDVRI6mR3DXOR ZKHUHDQHQRUPRXVJXOIGLYLGHGULFKDQGSRRU DQGUHPRWHUXUDODUHDVZKHUHIRUORUQSHDVDQWVKDGORVWODQGWRUDSD FLRXV ODQGORUGV )LUHG E\ KLV LQGLJQDWLRQ %RDO VWDJHG KHURLF WDOHV RI EORRG\ LQVXUUHFWLRQV DQG YDOLDQW WULXPSKV RYHU DGYHUVLW\ 3HUIRUPDQFHVHQGHGZLWKFDOOVWRUHYROXWLRQ²DOWKRXJKDWWKDWSRLQW WKHJURXSKDGOLWWOHRUQRLGHDDVWRZKDWSUHFLVHO\UHYROXWLRQZRXOG PHDQ IRU WKH YDULRXV DXGLHQFHV WR ZKRP WKH\ SOD\HG %RDO ZDV JHQXLQHO\ DQJHUHG E\ LQMXVWLFH DQG IHOW WKDW WKH YHUDFLW\ RI KLV HPRWLRQVVRPHKRZJXDUDQWHHGWKHSROLWLFDOVXFFHVVRIKLVPHWKRGV 7KDW WKLV ZDV QRW VR FDPH KRPH WR KLP TXLWH DEUXSWO\ ZKHQ D SHDVDQW ZKR ZDV FOHDUO\ PRYHG E\ WKH WURXSH·V UHYROXWLRQDU\ IHUYRXU RIIHUHG%RDOVRPHJXQVDQGDVNHGKLPWRMRLQLQWKHILJKW DJDLQVW D PXUGHURXV ORFDO ODQGORUG ,Q KLV LQWURGXFWLRQ WR 7KH 5DLQERZ RI 'HVLUH %RDO UHFDOOV WKH OHVVRQV KH OHDUQW IURP WKDW VWDUWOLQJFKDOOHQJH $JLWSURSLVILQH ZKDWZDVQRWILQHZDVWKDWZHZHUHLQFD SDEOHRIIROORZLQJRXURZQDGYLFH :HZKLWHPHQIURPWKH ELJFLW\ WKHUHZDVYHU\OLWWOHZHFRXOGWHDFKEODFNZRPHQ RIWKHFRXQWU\«6LQFHWKDWILUVWHQFRXQWHU²DQHQFRXQWHU ZLWK D UHDO SHDVDQW LQ IOHVK DQG EORRG UDWKHU WKDQ DQ DEVWUDFW¶SHDVDQWU\· ² DQ HQFRXQWHU ZKLFK WUDXPDWLVHG EXW HQOLJKWHQHG , KDYH QHYHU DJDLQ ZULWWHQ SOD\V WKDW JLYH DGYLFH QRUKDYH,HYHUVHQW¶PHVVDJHV· DJDLQ %RDO 7RVLQJ¶/HWXVVSLOORXUEORRGIRUIUHHGRP· ZDVQRWMXVWJOLE ,WZDV LUUHVSRQVLEOH %RDOUHVSRQGHGWRWKHSUREOHPE\UDGLFDOO\RYHUKDXOLQJWKHIRUP LQZKLFKKHSUHVHQWHGKLVSOD\V ,QVWHDGRISURWHVWLQJDJDLQVWRSSUHV VLRQ JHQHUDOO\ KH ZRXOG KHQFHIRUWK DGGUHVV RQO\ WKH VSHFLILF SUREOHPV RI KLV VSHFWDWRUV ,QVWHDG RI RIIHULQJ SUHPHGLWDWHG VROX WLRQV KH ZRXOG KHOS VSHFWDWRUV UHDFK WKHLU RZQ FRQFOXVLRQV 7KHDWUH LQ %RDO·V KDQGV QRZ EHFDPH GUDPDWLVHG GLVFXVVLRQ 7KH JURXSFRQWLQXHGWRWRXUDVLWKDGGRQH²EXWWKH\QRORQJHUFDUULHG DVKRZ 7KH\ZRXOGDUULYHDWWKHVFHQHRIDFRQIOLFW²DIDFWRU\RQ VWULNH IRU H[DPSOH ² DQG VWXG\ WKH VLWXDWLRQ 7KH\ ZRXOG WKHQ GUDPDWLVHWKHFUX[RIWKHFRQIOLFWDQGSOD\LWWKURXJKWRWKHSRLQWRI FULVLV WKDW QHHGHG WR EH UHVROYHG 7KH DFWRUV ZRXOG WKHQ VWRS DQG DVNWKHVSHFWDWRUV ZKRVHVLWXDWLRQZDVEHLQJGUDPDWLVHG IRUVXJJHV
$8*8672%2$/
WLRQVDVWRKRZEHVWWRSURFHHG 7KHVSHFWDWRUVZRXOGUHFRPPHQG FHUWDLQFRXUVHVRIDFWLRQDURXQGZKLFKWKHDFWRUVZRXOGLPSURYLVHD VFHQH 6RDVWRHQVXUHWKDWVXFKHYHQWVUHWDLQHGVRPHVHPEODQFH RI RUGHU WKHFRQGXFWRIERWKVSHFWDWRUVDQGDFWRUVZRXOGEHRYHUVHHQ E\DPDVWHURIFHUHPRQLHV WKHVRFDOOHG¶MRNHU· RI%RDO·VSDFN 7KH GLIILFXOW\ ZLWK WKLV IRUP RI¶VLPXOWDQHRXV GUDPDWXUJ\· ZDV WKDW %RDO·V DFWRUV KDG WR LPSURYLVH WKH UHDFWLRQV RI FKDUDFWHUV ZKR ZHUHEHWWHUNQRZQWRWKHDXGLHQFHWKDQWRWKHP 2QRQHRFFDVLRQ DZRPDQUHPDLQHGGLVVDWLVILHGZLWKWKHPDQQHULQZKLFKWKHJURXS KDG UHQGHUHG WKH VFHQDULR VKH KDG VNHWFKHG )UXVWUDWHG E\ WKH ZRPDQ·VKRVWLOLW\ %RDODVNHGKHULIVKHZRXOGOLNHWRFRPHXSRQWR WKH VWDJH DQG GHPRQVWUDWH WR WKH DFWRUV ZKDW SUHFLVHO\ VKH KDG LQ PLQG 7R%RDO·VVXUSULVHWKHZRPDQQRWRQO\DFFHSWHGEXWWXUQHGLQ D SHUIRUPDQFH ZKLFK WKH DFWRUV IRU DOO WKHLU SURIHVVLRQDOLVP FRXOG QHYHUKDYHHTXDOOHG $V%RDOUHFDOOV WKLVWUXWKGDZQHGRQPH ZKHQWKHVSHFWDWRUKHUVHOIFRPHV RQ VWDJH DQG FDUULHV RXW WKH DFWLRQ VKH KDV LQ PLQG VKH GRHV LW LQ D PDQQHU ZKLFK LV SHUVRQDO XQLTXH DQG QRQ WUDQVIHUDEOH DVVKHDORQHFDQGRLW DQGDVQRDUWLVWFDQGRLW LQKHUSODFH 2QVWDJHWKHDFWRULVDQLQWHUSUHWHUZKR LQWKH DFWRIWUDQVODWLQJ SOD\VIDOVH ,ELG $QG VR ¶VLPXOWDQHRXV GUDPDWXUJ\· EHFDPH ¶IRUXP WKHDWUH· 7KH DFWRUVFRQWLQXHGWRUHVHDUFKDQGVNHWFKVFHQHV EXWQRZWKHVSHFWD WRUVWRRNLWLQWXUQVWRSOD\WKHUROHRIWKHRSSUHVVHGSURWDJRQLVWDQG DWWHPSW E\WKHLURZQWKHDWULFDOH[HUWLRQV WRDUULYHDWVROXWLRQV KH >WKH VSHFWDWRU@ KLPVHOI DVVXPHV WKH SURWDJRQLF UROH FKDQJHV WKH GUDPDWLF DFWLRQ WULHV RXW VROXWLRQV GLVFXVVHV SODQVIRUFKDQJH²LQVKRUW WUDLQVKLPVHOIIRUUHDODFWLRQ ,Q WKLV FDVH SHUKDSV WKH WKHDWHU LV QRW UHYROXWLRQDU\ LQ LWVHOI EXWLWLVVXUHO\DUHKHDUVDOIRUWKHUHYROXWLRQ 7KHOLEHUDWHG VSHFWDWRU DVDZKROHSHUVRQ ODXQFKHVLQWRDFWLRQ %RDO 7KH VSHFWDWRUV QRZ EHFDPH ZKDW %RDO FDOOHG ¶VSHFWDFWRUV· WKH\ ZHUH QR ORQJHU SDVVLYH UHFLSLHQWV RI DOLHQ LQWHUYHQWLRQ EXW SDUWLFL SDQWVLQWKHTXHVWWREHPDVWHUVRIWKHLUIDWH ,Q WKH PLG V WKH SROLWLFDO UHSUHVVLRQ WR ZKLFK %RDO ZDV VXEMHFWHG EHFDPH VR LQWHQVH WKDW KH IHOW LW ZDV GDQJHURXV WR
$8*8672%2$/
FRQWLQXH SUDFWLVLQJ KLV SDUWLFXODUO\ YRODWLOH EUDQG RI IRUXP WKHDWUH 5DWKHU WKDQ FRXUW LPSULVRQPHQW E\ FRQWLQXLQJ IUXLWOHVVO\ WR GHI\ WKH JRYHUQPHQW EDQ RQ LQIODPPDWRU\ SHUIRUPDQFHV %RDO LQYHQWHG ZKDW KH FDOOHG¶LQYLVLEOH WKHDWUH· ,QYLVLEOH WKHDWUH LQYROYHG D JURXS RI DFWRUV SHUIRUPLQJ D UHKHDUVHG VFHQH LQ D SXEOLF VSDFH VXFK DV D PDUNHW RU D WRZQ VTXDUH ZKLOH SUHWHQGLQJ WR EH PHPEHUV RI WKH SXEOLF SDUWLFLSDWLQJ LQ D QRUPDO HYHU\GD\ VLWXDWLRQ 7KH¶DXGLHQFH· ZHUH SDVVHUVE\ ZKR FKDQFHG XSRQ WKH¶LQFLGHQW· XQDZDUH WKDW LW ZDVLQIDFWDGUDPDVHHNLQJVXUUHSWLWLRXVO\WRVXSSO\LQIRUPDWLRQRU VWLPXODWH GHEDWH DW D WLPH ZKHQ SROLWLFDO DFWLYLW\ ZDV EDQQHG )RU H[DPSOH ZKLOH %RDO ZDV LQ $UJHQWLQD KH GLVFRYHUHG WKDW DOWKRXJK WKHUH ZDV D ODZ WKDW SHUPLWWHG WKH SRRU WR UHFHLYH IUHH PHDOV DW UHVWDXUDQWV QRDWWHPSWZDVPDGHWRPDNHWKHH[LVWHQFHRIWKLVODZ NQRZQWRWKHSXEOLF 6R%RDO·VDFWRUVHQWHUHGDODUJHUHVWDXUDQWVHSD UDWHO\DQGVDWDWGLIIHUHQWWDEOHV 7KH¶SURWDJRQLVW· RUGHUHGDPHDO DWH LWDSSUHFLDWLYHO\DQGWKHQDQQRXQFHGORXGO\WKDWKHZDVQRWJRLQJ WR SD\ WKH ELOO WKH ODZ SHUPLWWHG LW :KHQ KH ZDV FKDOOHQJHG DQRWKHUDFWRU SOD\LQJWKHSDUWRIDODZ\HU ZHQWXSWRWKHPDQDJHU DQGH[SODLQHGWKDWWKHUHZDVLQGHHGVXFKDODZ (YHQWXDOO\DQXPEHU RI WKH SHRSOH DW WKH UHVWDXUDQW MRLQHG LQ WKH GHEDWH 7KXV LQYLVLEOH WKHDWUHPHWWKHQHHGVRIIRUXPWKHDWUH²WRVWLPXODWHSXEOLFGLVFXV VLRQDQGKHOSRYHUFRPHRSSUHVVLRQ²ZKLOHVKLHOGLQJ%RDOIURPWKH VLQLVWHUFRQVHTXHQFHVRIEHLQJRYHUWO\DFWLYLVW $V%RDO·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« ,GHFLGHGWRZRUNZLWKWKHVHQHZRSSUHVVLRQV« %RDO ¶&RSLQWKH+HDG· ZDVWKHQDPHRIDVHULHVRIIRUXPWKHDWUHW\SH ZRUNVKRSV %RDO KHDGHG XS LQ 3DULV LQ WKH HDUO\ V ZKLFK
$8*8672%2$/
DGGUHVVHG WKH UHSUHVVLYH HIIHFWV RI PHGLD HGXFDWLRQ DQG SROLWLFV ZKLFK %RDOIHOW HQFRXUDJHGQHHGOHVVSDVVLYLW\LQWKHIDFHRIUHGXQ GDQWPRUDOGLFWDWHV ,I¶&RSLQWKH+HDG· ZDVDWHUPWKDWGHULYHGIURP%RDO·VYLHZRI WKH SV\FKRVLV DW WKH KHDUW RI :HVWHUQ FXOWXUH WKHQ ¶5DLQERZ RI 'HVLUHV· DQ DOWHUQDWLYH WHUP IRU WKH VDPH ERG\ RI ZRUN GHULYHG IURP %RDO·V GHWHUPLQDWLRQ WR RYHUFRPH LW ¶7KUHH :LVKHV· LV DQ H[DPSOHRID¶5DLQERZRI'HVLUHV· LPSURYLVDWLRQWKDWHQFRXUDJHVWKH SURWDJRQLVW WR WUDQVIRUP D VFHQH IURP VRPHWKLQJ RSSUHVVLYH WR VRPHWKLQJDFFHSWDEOH 7KH GLUHFWRU JHWV WKH SDUWLFLSDQWV WR WUDQVIRUP WKH VFHQH LQWR D IUR]HQ LPDJH +H JLYHV WKH SURWDJRQLVW WKH ULJKW WR PDNHWKUHHZLVKHVFRPHWUXH« 2QHDFKZLVK WKHSURWDJ RQLVWLVDOORZHGWRPRGLI\WKHLPDJHRIWKHVFHQH« >7@KH SURWDJRQLVW VFXOSWV KHU ZLVKHV KHUVHOI E\ PDQLSXODWLQJ WKH LPDJH E\ SK\VLFDOO\ FKDQJLQJ LW DQG E\ WKH VDPH WRNHQ FKDQJLQJKHUVHOI ,ELG ¶5DLQERZRI'HVLUHV· LVQRWMXVWDERXWVRFLHW\¶DVLWLV· EXWVRFLHW\¶DV LWFRXOGEH· ,Q %RDOUHWXUQHGWR%UD]LO ,QWKHQHZSROLWLFDOFOLPDWHKH IRXQG KLPVHOI HOHFWHG DV D PHPEHU RI WKH 5LR &LW\ &RXQFLO %RDO QRZ XVHG IRUXP WKHDWUH WR VROLFLW VXJJHVWLRQV IRU QHZ ODZV IURP PHPEHUV RI KLV FRQVWLWXHQF\ 7KLV ZDV¶OHJLVODWLYH WKHDWUH· D PHDQV E\ ZKLFK XQGHUSULYLOHJHG VHFWLRQV RI WKH FRPPXQLW\ FRXOG YRLFH WKHLU YLHZV RQ KRZ WKHLU ORW FRXOG EH EHWWHUHG %RDO ZDQWHG¶WKH HOHFWRUVWRJLYHWKHLURSLQLRQV WRGLVFXVVWKHLVVXHV WRSXWFRXQWHU DUJXPHQWV ZHZDQWWKHPWRVKDUHWKHUHVSRQVLELOLW\IRUZKDWWKHLU SDUOLDPHQWDULDQ GRHV·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¶UHDO· FKDQJHV :H
-(5=<*5272:6.,
EHFRPHDFWLYH :HWUDGHLQRXUKDELWXDODFFHSWDQFHRIWKHZD\WKLQJV DUHDQGHPHUJHEHWWHUDEOHWRWDNHUHVSRQVLELOLW\IRURXUIXWXUHV )XUWKHUUHDGLQJ %RDO $ 7KHDWUHRIWKH2SSUHVVHG WUDQV &KDUOHV$ DQG0DULD2GLOLD /HDO0F%ULGH /RQGRQ 3OXWR3UHVV ³³ 7KH 5DLQERZ RI 'HVLUH WUDQV $GULDQ -DFNVRQ /RQGRQ 5RXW OHGJH ³³ /HJLVODWLYH7KHDWUH WUDQV $GULDQ-DFNVRQ /RQGRQ 5RXWOHGJH 6FKXW]PDQ 0 DQG &RKHQ&UX] - HGV 3OD\LQJ %RDO /RQGRQ 5RXWOHGJH 6+20,70,77(5
-(5=<*5272:6., ² ,Q WKH 3ROLVK GLUHFWRU DQG WKHDWUH WKHRULVW -HU]\ *URWRZVNL IRXQGHG D VPDOO H[SHULPHQWDO WKHDWUH LQ 2SROH D WRZQ QHDU :URFODZ LQ 6RXWKHUQ 3RODQG 2YHU WKH \HDUV WKLV /DERUDWRU\ 7KHDWUH JUHZ LQ UHSXWDWLRQ DQG VWDWXUH EXW QHYHU ORVW WRXFK ZLWK WKHDOPRVWPRQDVWLFDXVWHULW\WKDWOD\DWLWVKHDUW *URWRZVNL·VZDVWR EHD¶SRRUWKHDWUH· DWKHDWUHWKDWZRXOGUXWKOHVVO\HOLPLQDWHHYHU\ WKLQJWKDWFRXOGSRVVLEO\EHHOLPLQDWHGIURPWKHWKHDWUHVRDV WROD\ EDUHLWVHVVHQFH 7KLVZDVWREHDWKHDWUHZLWKRXWFRVWXPHV DWKHDWUH ZLWKRXWPDNHXS DWKHDWUHZLWKRXWOLJKWLQJDQGVRXQGHIIHFWV 7KLV ZDV WR EH D WKHDWUH LQ ZKLFK WKH DUW RI SHUIRUPDQFH ZRXOG EH UHGXFHGWRLWVFRUH²WKHWDVNRIEHLQJGHHSO\DQGLQWHQVHO\KXPDQ 7KHILUVWLWHPRQ*URWRZVNL·VOLVWRIWKHDLPVIRUKLVWKHDWUHUHDG ¶7R VWLPXODWHDSURFHVVRIVHOIUHYHODWLRQ· *URWRZVNL ¶,WLVWKH DFW RI OD\LQJ RQHVHOI EDUH· *URWRZVNL H[SODLQHG ¶RI WHDULQJ RII WKH PDVNRIGDLO\OLIH· LELG 8QGHU WKH WHUPV RI VXFK D FRQFHSWLRQ RI WKHDWUH WKH DFWRU ZDV UHTXLUHG WR EH OHVV FRQFHUQHG ZLWK SOD\LQJ D FKDUDFWHU WKDQ ZLWK XVLQJWKHSURFHVVRIFKDUDFWHULVDWLRQDVDZD\RIH[SORULQJWKHVHOI 7RSOD\DSDUWGRHVQRWPHDQWRLGHQWLI\ZLWKWKHFKDUDFWHU 7KH DFWRU QHLWKHU OLYHV KLV SDUW QRU SRUWUD\V LW IURP WKH RXWVLGH +H XVHV WKH FKDUDFWHU DV D PHDQV WR JUDSSOH ZLWK KLV RZQ VHOI WKH WRRO WR UHDFK VHFUHW OD\HUV RI KLV SHUVRQ DOLW\« :H DUH GHDOLQJ KHUH ZLWK WKH SDLQIXO PHUFLOHVV SURFHVVRIVHOIGLVFRYHU\
-(5=<*5272:6.,
7KHSXUSRVHRIUHKHDUVDOZDVQRWWROHDUQDERXWDFKDUDFWHUEXW WR OHDUQ DERXW RQHVHOI WKURXJK WKH DFW RI SOD\LQJ D FKDUDFWHU 7KH SXUSRVHRISHUIRUPDQFHZDVQRWWRSOD\DUROHEXWWROD\EDUHRQH·V VHOI LQ WKH SUHVHQFH RI WKH DXGLHQFH $V =ELJQLHZ 2VLQVNL D ORQJ WLPH FRPPHQWDWRU RQ *URWRZVNL·V ZRUN REVHUYHV ¶WKLV LV QHLWKHU D VWRU\QRUWKHFUHDWLRQRIDQLOOXVLRQ LWLVWKHSUHVHQWPRPHQW 7KH DFWRU H[SRVHV KLPVHOI DQG « KH GLVFRYHUV KLPVHOI« 7KLV LV QR ORQJHU DFWLQJ· 2VLQVNL *URWRZVNL·V DFWRU ZDV SODFHG OLWHUDOO\ LQWKHVLWXDWLRQRIWKHFKDUDFWHUDQGDVNHGWRPHDVXUHXS ,Q 7KH&RQVWDQW3ULQFH WKHDFWRU5\V]DUG&LHVODN UHDOO\ VXIIHUHG WKHWRUPHQWLQIOLFWHGRQWKHSURWDJRQLVWRI&DOGHURQ·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¶8VH\RXUYRLFHWRPDNHDKROHLQWKHZDOO· *URWRZVNL ZRXOG GHPDQG ¶WR RYHUWXUQ D FKDLU « WR PDNH D SLFWXUH IDOO· *URWRZVNL ,QKLVERRN7RZDUGVD3RRU7KHDWUH WKHUHLV DQ H[HUFLVH FDOOHG ¶)OLJKW· ZKLFK OLWHUDOO\ UHTXLUHV WKH DFWRUV WR WDNH RII DQG ODQG OLNH ELUGV DV WKH\ OHDUQ WR¶FRPSHO WKH ERG\ WR JR EH\RQG LWV QDWXUDO ELRORJLFDO OLPLWDWLRQV· 7KH GHPDQGV DUH GHOLEHUDWHO\RXWUDJHRXV OLNHWKHVFDSHJRDWRIWKHDQFLHQW*UHHNV OLNH &KULVW ZKR GLHG RQ WKH FURVV VR DV WR UHGHHP VRFLHW\ *URWRZVNL·V DFWRUV VHHN WR FOHDQVH VRFLHW\ E\ WKHLU VXIIHULQJ )RU *URWRZVNL WKH¶YLRODWLRQRIWKHOLYLQJRUJDQLVP«UHWXUQVXVWRD
-(5=<*5272:6.,
FRQFUHWH P\WKLFDO VLWXDWLRQ DQ H[SHULHQFH RI FRPPRQ KXPDQ WUXWK· LELG $V *URWRZVNL·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·VUHVLVWDQFHWRWKLVSV\FKLFSURFHVV« 2XUVWKHQLV DYLDQHJDWLYD²QRWDFROOHFWLRQRIVNLOOVEXWDQHUDGLFDWLRQ RIEORFNV ,ELG ² *URWRZVNL·V ZRUN RQ WKH YRLFH QRZ LQYROYHG HQFRXUDJLQJ WKH DFWRU¶WR WKLQN QRW RI DGGLQJ WHFKQLFDO HOHPHQWV UHVRQDWRUV HWF EXW « DW HOLPLQDWLQJ WKH FRQFUHWH REVWDFOHV KH FRPHV XS DJDLQVW HJ UHVLVWDQFHLQKLVYRLFH « >7@KHGHFLVLYHIDFWRULQWKLVSURFHVVLV KXPLOLW\ D VSLULWXDO SUHGLVSRVLWLRQ QRW WR GR VRPHWKLQJ EXW WR UHIUDLQ IURP GRLQJ VRPHWKLQJ· LELG ² EROG LQ RULJLQDO 7KH YLDQHJDWLYD LVWKHDSSOLFDWLRQRIWKHSULQFLSOHRI3RRU7KHDWUHWRWKH DUWRIWKHDFWRU -XVWDV*URWRZVNL·VVWDJHZDVEHUHIWRIVHWVDQGSURSV VRDOVRKLVDFWRUVKDGWRVKHGWKHLUDUVHQDORIVNLOOVDQGWULFNVVRDVWR OD\WKHPVHOYHVEDUHLQDOOKXPLOLW\²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
-(5=<*5272:6.,
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¶XWWHURSHQLQJWRDQRWKHUSHUVRQ«DWRWDODFFHSWDQFH RIRQHKXPDQEHLQJE\DQRWKHU· LELG $ PDQ DUULYHV WKHQ DW WKH SRLQW ZKLFK KDV EHHQ FDOOHG ¶KXPLOLW\· DW WKH PRPHQW LQ ZKLFK KH VLPSO\ LV DQG LQ ZKLFKKH«DFFHSWVVRPHRQH WRJHWKHUZLWKKLVDFFHSWDQFH RIVRPHRQH²KHDFFHSWVKLPVHOI«ZLWKRXWWKHGLIIHUHQWLD WLRQ EHWZHHQ RXWHU DQG LQQHU EHWZHHQ WKH ERG\ DQG WKH VRXO .XPHLJD 1RWLFH WKDW WKH WHUPV LQ ZKLFK DXWKHQWLFLW\ LV GLVFXVVHG DUH WKH VDPH DV EHIRUH VLQFHULW\ LV VWLOO D PDWWHU RI V\PELRVLV EHWZHHQ WKH PDQ WKDW LV DQG WKH PDQ WKDW LV VKRZQ 7KH RQO\ GLIIHUHQFH LV WKDW KXPDQ FRQWDFW QRZ VXSHUVHGHV WHFKQLFDO YLUWXRVLW\ DQG PRQDVWLF GLVSRVVHVVLRQDVWKHPRVWYLDEOHPHGLXPRIDXWKHQWLFLW\ 7KHXQDI IHFWHGVLPSOLFLW\RI*URWRZVNL·VLGHDOLVPLQVSLUHVWUXVWRQWKHEDVLV RI ZKLFK LQGLYLGXDOV PHHW RQH DQRWKHU GHIHQFHOHVVO\ GHYRLG RI WKHLU VRFLDO PDVNV 7KH\ FDQ EH ZLWKRXW DFWLQJ WKH\ FDQ EH WKHP VHOYHV ,Q WKH HDUO\ VWDJHV RI WKH ZRUN ZLWK RXWVLGHU SDUWLFLSDQWV WKH PRGHOIROORZHGZDVWKDWRIUHKHDUVDO 6RPHRQHZRXOGEHDWDUK\WKP RQ D VLPSOH SHUFXVVLRQ LQVWUXPHQW 6RPHRQH HOVH ZRXOG UHVSRQG ZLWK D GLIIHUHQW UK\WKP 7KH\ ZRXOG WU\ DQG ILQG HDFK RWKHU 6RPHRQH HOVH ZRXOG KHOS WKHP E\ KXPPLQJ ² DQG VR RQ XQWLO D PHHWLQJZDVDFKLHYHGWKURXJKWKHPHGLXPRIPXVLF $WRWKHUWLPHV *URWRZVNLZRXOGDVNWKHSDUWLFLSDQWVWRXVHVLPSOHGRPHVWLFDFWLYL WLHVVXFKDVFOHDULQJVSDFHV EDNLQJEUHDGDQGZDONLQJLQWKHZRRGV DV YHKLFOHV IRU WKH RUFKHVWUDWLRQ RI FRQWDFW $V PRUH DQG PRUH RI WKLV ZRUN WRRN SODFH RXW RI GRRUV D QHZ LPSHUDWLYH HPHUJHG D SUHRFFXSDWLRQZLWKFRQWDFWZLWK1DWXUH
-(5=<*5272:6.,
>:@HGLVSHUVHLQWKHIRUHVW ,VWDQGIDFHWRIDFHZLWKDWUHH ,WLVVWURQJ²,FDQFOLPELW VXSSRUWP\VHOIGHOLFDWHO\RQLWV EUDQFKHV 2QLWVFURZQDVWURQJZLQGEORZVRQXVERWK RQ WKHWUHHDQGP\VHOI :LWKP\ZKROHERG\,IHHOWKHPRYH PHQWVRIEUDQFKHV WKHFLUFXODWLRQRIIOXLGV ,KHDUWKHLQQHU PXUPXUV ,QHVWOHLQWRWKHWUHH 6RPH RI WKLV PD\ VHHP WR EH D IDU FU\ IURP *URWRZVNL·V HDUOLHU ZRUN EXW WKH PRWLYDWLRQ LV UHPDUNDEO\ FRQVLVWHQW :KHQ ZH KDYH 5LFKDUG 0HQQHQ GLJJLQJ LQ WKH ZHW HDUWK¶DVNLQJ WKH URRWV ZKR , ZDV· ZHKDYHWKHVDPHFRQFHUQZLWKVHOINQRZOHGJHWKDWLQIRUPHG *URWRZVNL·V ZRUN LQ WKH V :KHQ 6WHYHQ :HLQVWHLQ VSHDNV RI RYHUFRPLQJKLVUHVLVWDQFHWREHLQJVODSSHGZLWKZHWEUDQFKHVWLOOKH ¶WUDQVFHQGHG SHUVRQDO SDLQ· ZH KDYH DQ H[SHULHQFH QRW GLVVLPLODU WRWKDWRI5\V]DUG&LHVODNKDYLQJWREHDUUHDOSDLQDVWKH&RQVWDQW 3ULQFH ,QWLPH *URWRZVNLFDPHWRUHDOLVHWKDWH[SHULPHQWVRIWKLVNLQG ZHUH SURQH WR GHJHQHUDWH LQWR ZKDW KH FDOOHG DQ ¶HPRWLYH VRXS· 5LFKDUGV ODFNLQJ WKH GLVFLSOLQH RI KLV HDUOLHU ZRUN 0XFKRIKLVVXEVHTXHQWZRUNDWWKH8QLYHUVLW\RI&DOLIRUQLD ,UYLQH DQGDWWKH:RUNFHQWUHKHIRXQGHGLQ LQ3RQWHGHUD ,WDO\ ZDV GLUHFWHG DW UHFRYHULQJ WKH SUHFLVLRQ WKDW FKDUDFWHULVHG WKH ZRUN RI WKH /DERUDWRU\ 7KHDWUH 7KLV ZDV QRW D UHWXUQ WR SHUIRUPDQFH ZRUNVKRS H[HUFLVHV ZHUH QRZ WUHDWHG SXUHO\ DV YHKLFOHV IRU WKH DFWRUV PHDQV E\ ZKLFK WKH\ JDLQHG DFFHVV WR VWDWHV RI EHLQJ WKDW ZHUH HQFRGHG LQWR WKH DFWLRQV WKH\ SHUIRUPHG 7KH VRFDOOHG ¶2EMHFWLYH'UDPD·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« *URWRZVNL VSHDNV RI YLEUDWLRQ LQ
/8&$521&21,
FRQQHFWLRQ ZLWK WKH +LQGX VFLHQFH RI PDQWUD VXJJHVWLQJ WKDW VSHFLILF VRXQGV DIIHFW DQ LQGLYLGXDO·V SV\FKRHQHUJHWLF VWDWHLQSK\VLFDOO\REMHFWLYHZD\V :ROIRUG ,I WKH ZRUN ZLWK 1DWXUH ZDV DQ DWWHPSW WR ILQG RQHVHOI LQ HSLSKDQLF FRQWDFW ZLWK WKH HOHPHQWV WKH ZRUN ZLWK DQFLHQW WUDGL WLRQV RI SHUIRUPDQFH ZDV DQ DWWHPSW WR ILQG RQHVHOI LQ WHUPV RI RQH·V SDUWLFLSDWLRQ LQ WKH ZLVGRP RI DQWLTXLW\ :ULWLQJ DERXW *URWRZVNL·V SURGXFWLRQ RI $SRFDO\SVLV &XP )LJXULV -HQQLIHU .XPHLJD UHPDUNHG WKDW *URWRZVNL·V LQWHQWLRQ ZDV ¶WR EULQJ XV PRPHQWDULO\ LQWR FRQWDFW ZLWK WKH GHHSHVW OHYHOV ZLWKLQ RXUVHOYHV· .XPHLJD $OPRVW WKUHH GHFDGHV ODWHU WKH DPELWLRQ RI *URWRZVNL·V ZRUN ZDV PXFK WKH VDPH WR HQFRXUDJH DFWRUV WR GLVFRYHUWKDW ZLWKLQWKHPRUWDOFRQILQHVRIWKHLUERGLHV WKHUHH[LVWV D SXUH SXOVH RI VHOIKRRG WKDW EHDWV DFURVV ERWK FRQWLQHQWV DQG FHQWXULHV 1RWHV
%DUED (XJHQLR DQG )ODV]HQ /XGZLN ¶$ 7KHDWUH RI 0DJLF DQG 6DFULOHJH· 7XODQH'UDPD5HYLHZ %DUED (XJHQLR ¶7KHDWUH/DERUDWRU\5]HGRZ· 7XODQH'UDPD 5HYLHZ .RODQNLHZLF] /HV]HN ¶2Q WKH 5RDG WR $FWLYH &XOWXUH· WUDQV %ROHVODZ7DERUVNL :URFODZ XQSXEOLVKHGGRFXPHQW ,ELG ,ELG
)XUWKHUUHDGLQJ *URWRZVNL - 7RZDUGVD3RRU7KHDWUH /RQGRQ (\UH0HWKXHQ .XPHLJD - 7KH7KHDWUHRI*URWRZVNL /RQGRQ 0HWKXHQ 2VLQVNL = *URWRZVNL DQG KLV /DERUDWRU\ WUDQV /LOOLDQ 9DOH DQG 5REHUW)LQGOD\ 1HZ
/8&$521&21,
/8&$521&21, ² 2UODQGRIXULRVR ZKLFKSOD\HGQDWLRQDOO\DQGLQWHUQDWLRQDOO\WRJUHDW DFFODLP DIWHU LWV ILUVW SHUIRUPDQFH DW WKH 6SROHWR )HVWLYDO SURYHGWREHVHPLQDOWR5RQFRQL·VZRUN )RUDOOKLVHFOHFWLFLVP KH FRQWLQXHGWRH[SORUHWKLVSURGXFWLRQ·VQRYHOXVHRISODFHDQGDUFKL WHFWXUH VSDFHDQGSHUVSHFWLYH DXGLHQFH²SHUIRUPDQFHLQWHUDFWLRQ LWV FRPELQDWLRQ RI SHUIRUPDQFH JHQUHV PDFKLQHU\ DQG VSHHFK 7KURXJKRXW KLV FDUHHU 5RQFRQL ZDV WR GHVFULEH KLV H[SHULPHQWV ZLWKUHFLWDWLRQDVDFRPPLWPHQWWRDUHSUHVHQWDWLRQDOUDWKHUWKDQDQ LQWHUSUHWDWLYHVW\OHRIGHOLYHU\ WKDWLV WRZKDWDPRXQWVWRDGHFODP DWRU\ PRGH UDWKHU WKDQ D UHDOLVWLF DSSURDFK WR FKDUDFWHU FRQVWUXFWLRQ +LV VFULSW ZLWK (GRDUGR 6DQJXLQHWL RI $ULRVWR·V VL[WHHQWKFHQWXU\ SRHP ZKRVH H[WUDYDJDQW KHURHV DUH SHUVRQLILHG E\ WKH FKLYDOURXVDEVXUG DQG DOOHJHGO\¶PDG· 2UODQGR LQLWLDWHG WKH SUDFWLFH KH ZDV WR SXUVXH YLJRURXVO\ LQ ODWHU \HDUV RI VWDJLQJ QRQ WKHDWUH WH[WV 7KLV QRWDEO\ LQFOXGHV /ROLWDVFHQHJJLDWXUD EDVHG RQ 9ODGLPLU 1DERNRY·V VFULSW IRU WKH ILOP E\ 6WDQOH\ .XEULFN ZKLFK .XEULFN KDG RQO\ SDUWO\ XVHG DQG 4XHO FKH VDSHYD 0DLVLH :KDW 0DLVLH .QHZ ZKLFK 5RQFRQL DGDSWHG IURP +HQU\ -DPHV· QRYHO 5HODWLYHO\ VKRUW DW PLQXWHV 2UODQGR IXULRVR WUDQVIHUUHG $ULRVWR·V WKLUGSHUVRQ QDUUDWLYHV WR WKH ILUVW SHUVRQ WKHUHE\ GHSOR\LQJ QDUUDWLRQ DV DFWLRQ ZLWK DFWRUV GLUHFWO\ HQJDJHG LQ WKHLU RZQVWRULHV $ULRVWR·VLQWULFDFLHVZHUHUHGXFHGWRWKHQDUUDWLYHVSLQH RI KLV WKUHH PDLQ WDOHV ² 2UODQGR·V ORYH IRU FUXHO $QJHOLFD %UDGDPDQWH·VIRU5XJJHUR WKHEDWWOHEHWZHHQWKH6DUDFHQVDQGWKH &KULVWLDQV RXWVLGH 3DULV ² ZKLFK 5RQFRQL IUDJPHQWHG DQG GLVOR FDWHG WHPSRUDOO\ DQG VSDWLDOO\ 7KHVH SULQFLSOHV RI PRQWDJH DQG DOHDWRU\HIIHFWZHUHSDUWLFXODUO\ZHOOVXLWHGWRDVWUXFWXUHRIFRQFXU UHQW HYHQWV SHUIRUPHG RQ SODWIRUPV ZKHHOHG E\ DFWRUV DPRQJ WKH FURZG 7ZRVWDJHV ZKRVHFXUWDLQVRSHQHGDQGFORVHGWRPRFNWKLV WKHDWUHFRQYHQWLRQ IDFHGHDFKRWKHUIURPDJUHDWGLVWDQFH PDUNLQJ WKH OLPLWV RI WKH SOD\LQJ VSDFH (SLF HSLVRGHV WRRN SODFH RQ WKH UROOLQJSODWIRUPV 7KLVZDVWKHDWUHRQDYDVWVFDOHLQXQFRQYHQWLRQDO YHQXHV ² D GHFRQVHFUDWHG FKXUFK LQ 6SROHWR WKH VTXDUHV RI ,WDOLDQ FLWLHV %RORJQD·V FHQWUDO VTXDUH DFFRPPRGDWHG VSHFWDWRUV ZKLOH0LODQ·V3LD]]DGHO'XRPRKHOG WKHGLVXVHGPDUNHWVRI 3DULV /HV+DOOHV LQ DQG DPRQJRWKHUIRXQGVSDFHV DVNDWLQJ ULQNDWWKH(GLQEXUJK)HVWLYDOLQWKDWVDPH\HDU ,WZDVDOVRSURPHQDGHWKHDWUHLQZKLFKDXGLHQFHVZHUHVSHFWDWRU SDUWLFLSDQWV IUHH WR VHOHFW RQH QDUUDWLYH RU WR URDP LQ WKH SRO\SKRQLFRUJDQLVDWLRQRIPRELOHSHUIRUPDQFHVOHGE\VRPHIRUW\
/8&$521&21,
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· DUPRXULQVLGH 7KHEDWWOHRI 3DULV ZDV RQ D SODWIRUP VSHFWDFXODU LQ SHUVSHFWLYHV UHFDOOLQJ WKH SDLQWLQJV RI 3DROR 8FFHOOR $W WKH HQG RI WKH SHUIRUPDQFH WKH KLSSRJULIIIOHZ$VWROIRWRWKHPRRQLQVHDUFKRIDNH\WRKXPDQLW\·V SUREOHPVLQ2UODQGR·VLGHDOLVWLF¶PDG· EUDLQ $PL[WXUHRI6LFLOLDQSXSSHWU\ IDLUJURXQGHQWHUWDLQPHQW WRXUQD PHQW DWKOHWLFV WUDGLWLRQDO VWRU\WHOOLQJ IDEOH DQG ULWXDO WKH SURGXFWLRQ LQVSLUHG TXHVWLRQV DV WR ZKHWKHU LW ZDV D ¶SHRSOH·V· WKHDWUH /D6WDPSD -XO\ GHFODUHGLWZDV¶HVVHQWLDOO\DQLQWHO OHFWXDOLVWLFRSHUDWLRQ· DOEHLWGHVWLQHGIRUD¶SRSXODU· SXEOLFLQJRRG IDLWK 7KHFRQVHQVXVWKDW 2UODQGRIXULRVR ZDV¶DEULOOLDQWGHPRQVWUD WLRQ RI KRZ WR PDNH¶¶QHZ·· WKHDWUH· ,O 0DWWLQR -XO\ ZDV LQYRNHGZKHQ5RQFRQLXVHGDQRWKHUPHGLXP WHOHYLVLRQ WRFUHDWHD ¶SRSXODU· VSHFWDFOHLQDQRWKHUVHQVHRIWKHZRUG 7KLVKLJKO\SXEOL FLVHGYHUVLRQRI2UODQGR FORVHUWRDIDQWDVLDRQWHFKQRORJ\WKDQWRD FRPPXQDOIHVWLYLW\ ZDVVKRZQLQILYHRQHKRXUHSLVRGHVLQ 5RQFRQL UHWXUQHG WR LPPHQVH VSDFHV DQG SURPHQDGH SURGXF WLRQV LQ DW WKH )LDW IDFWRU\ LQ /LQJRWWR D QHLJKERXUKRRG RI 7XULQ WKHQ LQ DW/D6FDOD·VDEDQGRQHGZRUNVKRSVDQGZDUH KRXVHV LQ %RYLVD 0LODQ 7KH /LQJRWWR SURGXFWLRQ *OL XOWLPL JLRUQL GHOO· XPDQLWj 7KH/DVW'D\VRI+XPDQLW\ ZDVEDVHGRQWKHQRWRUL RXVO\ ¶XQSOD\DEOH· ²SDJH GUDPD FRPSOHWHG LQ E\ WKH $XVWULDQ .DUO.UDXV 5RQFRQLGHIWO\WXUQHG.UDXV· ZDUWKHPHVLQWR HPEOHPDWLF VFHQHV ILOOLQJ WKHP ZLWK LURQLF EL]DUUH JURWHVTXH RU LQGHILQDEO\ VWDUWOLQJ LPDJHV ZKRVH VWUDQJHQHVV ZDV KLJKOLJKWHG E\ WKH VXUURXQGLQJ KHDY\ PDFKLQHU\ XVHG WR SURGXFH WKH FKDVVLV RI PRWRUFDUV ,WZDVQRW5RQFRQL·VLQWHQWLRQWRRIIHUDFULWLTXHRIWKH LQGXVWULDOZRUOG DOWKRXJKFULWLFDOPHDQLQJFRXOGEHDWWULEXWHGWRKLV MX[WDSRVLWLRQRILPDJHDQGVSDFH 5DWKHU KLVSRLQWZDVWRFRQVWUXFW DQLQGXVWULDOSLHFHDFFRUGLQJWRZKDWLVVXUHO\EHVWGHVFULEHG DVKLV RUQDWH EDURTXHWKHDWULFDOLW\ 7KH%RYLVDSURGXFWLRQ ,QILQLWLHV XVHGDWH[WE\WKH(QJOLVKPDWK HPDWLFLDQ -RKQ ' %DUURZ :RPHQ VWDUHG IURP UHFXPEHQW SRVLWLRQV
/8&$521&21,
RQWKHIORRURUVDWXQGHU RUEHVLGH FRQWUDSWLRQVORRNLQJOLNHVSDFH DJHKDLUGU\HUV 7KHLUPDQQHTXLQOLNHIDFHV KDOIPDVNHGRUFRYHUHG ZLWKWKLFNPDNHXS ORRNHGDVLIWKH\KDGXQGHUJRQHSODVWLFVXUJHU\ 6LPLODU IDFHV ZHUH WR EH VHHQ RQ GHFDSLWDWHG KHDGV KHUH DQG WKHUH 0XPP\OLNH ILJXUHV LQ ZKHHOFKDLUV RQ GLIIHUHQW SODQHV DQG DW GLIIHUHQW KHLJKWV UHFDOOHG &DVDQRYD LQ 5RQFRQL·V 3KRHQL[ E\ 0DULQD7VYHWD\HYD 0HQLQIOHVKFRORXUHGPDVNV GUHVVHGLQVXLWVDQG KROGLQJ XS RSHQ XPEUHOODV ZDONHG RQ EORFNV RI VWRQH LQ QDUURZ FRUULGRUV 2U HOVH WKH\ OD\ DERYH HDFK RWKHU RQ VKHOYHV LQ WKHVH FRUULGRUV 5RQFRQL FRQVLVWHQWO\ PRXOGLQJ VFHQH DQG PRYHPHQW WR WKHEXLOGLQJ·VDUFKLWHFWXUDODQGLQWHULRUGHVLJQ (OVHZKHUHWKH\VWRRG RU VDW ZUDSSHG LQ RXWVL]H EDQGDJHV RU KXQJ XSVLGH GRZQ LQ RSHQ YLVWDV ZKHUH FRVWXPHV ZHUH RQFH KXQJ WKHLU ZKLWH JDUPHQWV VXJJHVWLQJVSDFHVXLWV 7KHDFWRUVSHUIRUPHGDP\ULDGRIQRQORJLFDOO\DVVHPEOHGDFWLRQV DVWKH\UHFLWHGWKHRULHVRIQXPEHUV WLPHDQGVSDFH KHQFH¶LQILQLWLHV· E\UHQRZQHGPDWKHPDWLFLDQVDFURVVWKHDJHV PRVWRILWLQFRPSUHKHQ VLEOHDQGDOORILWGHFODLPHGLQWKHDUWLILFLDOVW\OH²DFFHQWXDWHGV\OODEOHV ZURQJO\ SODFHG VWUHVVHV RYHUH[WHQGHG LQWRQDWLRQV ² WKDW 5RQFRQL KDG E\QRZ PDGHKLVRZQ +HSOD\HGZLWKWKHLGHDRIPDWKHPDWLFDO SURJUHVVLRQ E\ XVLQJ ILYH SODWIRUPV HDFK VHTXHQFH RQ HDFK SODWIRUP ODVWLQJ ILIWHHQ PLQXWHV *URXSV RI VSHFWDWRUV HQWHUHG FRQVHFXWLYHO\ DW WZHQW\PLQXWH LQWHUYDOV RQH JURXS IROORZLQJ WKH QH[W XQWLO LW FRPSOHWHG WKH FLUFXLW 7KH VKRZ IRU HDFK JURXS ODVWHG VHYHQW\ILYH PLQXWHV 7KHZKROHVKRZODVWHGILYHKRXUV 6SHFWDWRUVFRXOGUHSHDWWKH FLUFXLW ILQGLQJWKDWHDFKVHTXHQFHZDVPRGLILHGLQHYHU\URXQG 5RQFRQL UHWXUQHG WR RXWGRRU VSDFH LQ ZLWK (XULSLGHV· 3URPHWKHXV%RXQG LQWKHUXLQVRID*UHHNDPSKLWKHDWUHLQ6\UDFXVH 6LFLO\ 7KH SURWDJRQLVW SHUIRUPHG LQ WKH SDOP RI WKH KDQG RI D JLJDQWLFZKLWHVWDWXHEHQGLQJIRUZDUGV %HORZKLP Q\PSKVGDQFHG LQZDWHU $ERYHKLP LQWKHGLVWDQFH WKHFUDQHVRIDFRQVWUXFWLRQVLWH ZHUHYLVLEOH²DIRUWXLWRXVUHFROOHFWLRQRIWKHFUDQHLQ2UODQGRIXULRVR QRW DYDLODEOH IRU 3URPHWKHXV LQ /\RQ·V ZHOOSUHVHUYHG DPSKLWKHDWUH ODWHU LQ ZKHUH DFFRUGLQJ WR KLV XVXDO SULQFLSOH 5RQFRQL OHW WKH QHZ VSDFH LQIOXHQFH WKH SURGXFWLRQ·V FKDUDFWHU 7KH ZDWHU UHFDOOHG WKH IORRGHG VWDJH IRU 0RQWHYHUGL·V /·2UIHR H ,O ULWRUQR GL 8OLVVH LQ SDWULD RQH RI VHYHUDO EDURTXH RSHUDV DPRQJ PRUH WKDQILIW\GLUHFWHGE\5RQFRQLVLQFHWKH V +LV5RVVLQLVHULHVLQ WKH VZDVVHWLQWKHLPSRVLQJDUFKLWHFWXUDOVWUXFWXUHVW\SLFDORI KLVGUDPDWLFWKHDWUH 7KH ODWH V ZDV D SHULRG RI H[SHULPHQWDWLRQ IRU 5RQFRQL ZRUNLQJZLWKKLV3UDWR/DERUDWRU\RQVXFKWH[WVDV &DOGHUyQ E\3LHU
/8&$521&21,
3DROR 3DVROLQL ,Q WKH V KH H[SHULPHQWHG ZLWK DUFKLWHFWXUDO VXUIDFH DQG GHSWK DQG SODQHV RI OLJKW DQG FRORXU IRU WKH¶QDWXUDOLVW· GUDPD 5RQFRQL WKRXJKW ZDV QRUPDOO\ GHQLHG VXFK D GHVLJQHU DHVWKHWLF +H VWDJHG -RKQ *DEULHO %RUNPDQ 6W -RDQ RI WKH 6WRFN\DUGV DQG 7KH 7KUHH 6LVWHUV DFFRUGLQJO\ +RZHYHU WKHDUWLILFLDOVSHHFK PDQQHUHGVKRXWLQJLQ7KH7KUHH6LVWHUV DUJXDEO\ DSSURSULDWH IRU KLV HSLF SURGXFWLRQV DSSHDUHG WR EH QR PRUH WKDQ UKHWRULFDOSRVWXULQJLQWKHFRQILQHVRIWKHSURVFHQLXPDUFK 7KH V ZDV 5RQFRQL·V SHULRG DV GLUHFWRU RI WKH WHDWUL VWDELOL PXQLFLSDODQGVWDWHVXEVLGLVHGWKHDWUHV +HUDQWKH7HDWUR6WDELOHGL 7RULQR ² GXULQJZKLFKWLPH DSDUWIURP *OLXOWLPLJLRUQL KH GHFRQVWUXFWHG VXFK¶VWDQGDUG· WH[WV DV 0HDVXUH IRU 0HDVXUH DQG 2·1HLO·V6WUDQJH,QWHUOXGH DQGIRXQGHGDQDFWLQJVFKRRO $WWKH 7HDWUR GL 5RPD ² KH H[SORUHG QHZ SRVVLELOLWLHV IRU VWDJLQJ WKURXJK SOD\WH[WV VFULSWHG IURP QRYHOV IRU H[DPSOH 7KH %URWKHUV .DUDPD]RY ,Q KH DVVXPHG WKH GLUHFWLRQ RI WKH 3LFFROR 7HDWUR GL 0LODQR OHDGLQJ 6WUHKOHU·V WKHDWUH DZD\ IURP LWV KLWKHUWR VRFLDO FRQFHUQV WRZDUGV KLV RZQ IRFXV RQ GHYHORSLQJ D ¶WKHDWUH ODQJXDJH· 7KLV 5RQFRQLEHOLHYHV LVLQFXPEHQWRQZKDWKHGHILQHVDV WKH ¶GLUHFWRUGUDPDWLVW· ZKRVH IRUPDO LQQRYDWLRQV VFHQLF DV ZHOO DV WH[WXDO LQFOXGLQJVFULSWLQJIURPQRYHOV DUHWKHRQO\ZD\IRUZDUGLQ WKH¶FULVLVRIFRQWHPSRUDU\SOD\ZULWLQJ· 5RQFRQL ² 5RQFRQL·V LQDXJXUDO SURGXFWLRQV DW WKH 3LFFROR ZHUH D GLSW\FK RQWKHLGHDRIWKHGUHDP /LIHLVD'UHDP E\&DOGHUyQGHOD%DUFDLQ WKH 1XRYR 3LFFROR QRZ NQRZQ DV WKH 7HDWUR 6WUHKOHU DQG 6WULQGEHUJ·V7KH'UHDP3OD\ LQWKH6WXGLRRIWKH3LFFRORFRPSOH[ 7KH\ DOVR H[SORUHG WZR GLIIHUHQW NLQGV RI VSDFHV 7KH ILUVW KDV DQ XQXVXDOO\ORQJVWDJH ZKLFKDOORZHG5RQFRQLWRZRUNLWDVDFLQHPD VFUHHQ +H VSOLW YLVXDO IUDPHV DQG UDQ GLYHUVH DFWLRQV WLPHV DQG SODFHVDWYDULRXVH\HOHYHOVVLPXOWDQHRXVO\ ²DGHPRQVWUDWLRQRIKLV IDLWK LQ ¶WKH SRVLWLYH LQIOXHQFH RI FLQHPD DQG WHOHYLVLRQ RQ WKH HYROXWLRQRIWKHDWUHODQJXDJH· LELG 7KLVLQIOXHQFHZDVHTXDOO\ HYLGHQW LQ 5RQFRQL·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
3(7(56&+80$11
5RQFRQLLQD¶WUDGLWLRQDO· WKHDWUH +LVZRUGVRQKRZWKHFLQHPDKDV UHHGXFDWHG WKH VSHFWDWRU·V JD]H VXFFLQFWO\ GHVFULEH WKH WKUXVW RI WKHVHWZRSURGXFWLRQV DQGWKDWRIKLVZRUNVLQFHWKH V 0\IUHTXHQWUHFRXUVHWRPRYLQJVSDWLDOVWUXFWXUHVFRXOGEH H[SODLQHG IRU LQVWDQFH E\ WKH H[LJHQF\ RI UHSURGXFLQJ WKHDWULFDOO\ WKH¶ORJLF· RI FRQWHPSRUDU\ RSWLFDO SHUFHSWLRQ ZKLFK IRUPHGE\WKHILOPLFSDUDGLJPRIWKHSOD\RIILHOGV >RI YLVLRQ@ FRXQWHUILHOGV ORQJUDQJH YLHZV FORVHXSV DQG YHU\ FORVH VKRWV WHQGV WR SLFN RXW VLJQLILFDQW LWHPV DQG GHWDLOV IURP WKH JHQHUDO YLVXDO VSDFH FDQFHOOLQJ RXW ZKDW HYHULVVXSHUIOXRXVWRLW ,ELG 5RQFRQL·V IRUPDO H[SHULPHQWV IUHTXHQWO\ \LHOG JODFLDO SURGXF WLRQV 2Q WKH RFFDVLRQ RI KLV H[SHULPHQW ZLWK GXDO YLVLRQ LQ ·7LV 3LW\6KH·VD:KRUH RQHYHUVLRQZLWKDPL[HGJHQGHUFDVW WKHRWKHU VROHO\PDOH WKHFULWLF)UDQFR4XDGUL 5RQFRQL·VHDUOLHVWDQGJUHDWHVW VXSSRUWHU REVHUYHGWKDWLWZDV¶WLPHKHWRRNKLVIHHOLQJVRXWRIWKH IUHH]HU· /D5HSXEEOLFD -XQH 1RWHV
/HFWXUHGHOLYHUHGE\5RQFRQLZKHQKHZDVDGPLWWHGWRWKHGHJUHHRI 'RFWRURI$UWV 0XVLFDQG3HUIRUPDQFH KRQRULVFDXVD DWWKH8QLYHUVLW\ RI%RORJQD $SULO ,ZLVKWRWKDQN)UDQFR9HVSLHUR DUFKLYLVWDW WKH3LFFROR7HDWUR IRUGUDZLQJP\DWWHQWLRQWRWKLVOHFWXUH $OOWUDQVOD WLRQVDUHPLQH
)XUWKHUUHDGLQJ ,QQDPRUDWL ,VDEHOOD HG /XFD5RQFRQLHLOVXRWHDWUR 0LODQ %XO]RQL (GLWRUH 4XDGUL )UDQFR ,OULWRSHUGXWR 6DJJLRVX/XFD5RQFRQL 7XULQ (LQDXGL 5RQFRQL /XFD /H]LRQL GL WHDWUR 0LODQ (GL]LRQL 3LFFROR 7HDWUR GL 0LODQR 0$5,$6+(97629$
3(7(56&+80$11 ² :KHQ DJHWZHQW\VHYHQ DSHQQLOHVV3HWHU6FKXPDQQORRNHGDWWKH ZRUOGWKURXJKWKHILOWHURI1HZ
3(7(56&+80$11
DVGUDEDQGVRXOOHVVDVKLVQDWLYH*HUPDQ\ FRQILUPLQJKLVVXVSLFLRQ WKDW PDQNLQG·V DWWUDFWLRQ WR WKH FRQYHQLHQFHV RI PRGHUQ OLIH ZDV GHHSO\ GHKXPDQLVLQJ 6HQVLQJ WKDW KXPDQLW\ KDG VRPHKRZ ORVW WRXFKZLWKWKHZHOOVSULQJVRIPHDQLQJIXOOLYLQJ 6FKXPDQQUHVROYHG LQKLVDUWWRUHHVWDEOLVKWKHOLQNEHWZHHQ·VPDQ·VPDWHULDODQGPHWD SK\VLFDO H[LVWHQFH KLV WKHDWUH ZDV WR DFKLHYH ¶WKH VSLULWXDO UHJHQHUDWLRQRIPDQNLQG· %UHFKW D 7KH DUW ZDV WR EH QRW MXVW LQGXOJHQFH QRU MXVW HQWHUWDLQ PHQW EXWPHDQVRIVDOYDWLRQ IRUWKHDUWLVWDQGIRUKLVIHOORZ PHQ ,ELG ,I WKH IDOVH JRG RI WHFKQRORJ\ KDG LQGXFHG LQGROHQFH DQG OHWKDUJ\ ZLWK UHJDUG WR PDQNLQG·V¶KLJKHU FDOOLQJ· 6FKXPDQQ ZRXOG XVH KLV DUW WR EULQJ SHRSOH LQWR FRQWDFW RQFH DJDLQ ZLWK D WUDQVFHQGHQW UHDOLW\ 6FKXPDQQ·V WKHDWUH ZRXOG WDNH RYHU WKH IXQFWLRQ WKDW UHOL JLRQKDGDEURJDWHG LWZRXOGUHVWRUHWRKXPDQLW\LWVPLVODLGVHQVHRI WKHVXEOLPH 6FKXPDQQ·VWKHDWUHVSDQVWKHIXOOUDQJHRIWKHDWULFDOFRQYHQWLRQV IURP DJLWSURS W\SH VWUHHW VKRZV WR PRUH IRUPDO LQGRRU SHUIRU PDQFHV +H KDV ZRUNHG LQGRRUV DQG RXWGRRUV LQ FKXUFKHV DQG LQ ILHOGV +HKDVSHUIRUPHGIRUFKLOGUHQDQGIRUDGXOWV IRUWKHLQWHOOL JHQWVLD DQG IRU WKH XQGHUSULYLOHJHG +LV WKHDWUH KDV LQFOXGHG WKH DXGLHQFHDQGH[FOXGHGLW KHKDVXVHGODQJXDJHDQGUHMHFWHGLW
3(7(56&+80$11
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· ERGLHV )RUDOOWKHLUYDULHW\ ZKDW 6FKXPDQQ·V PDQ\ SXSSHWV KDYH LQ FRPPRQ LV WKDW WKH\ UHVHPEOH ZRUNV RI VFXOSWXUH PRUH WKDQ GUDPDWLF DUWHIDFWV 7KH\ H[SUHVV DUFKHW\SHV PRUH WKDQ FKDUDFWHUV HWKLFDO DEVWUDFWLRQV PRUH WKDQSODXVLEOHSHUVRQDOLWLHV 2QHEHFRPHVDZDUHRQO\VORZO\RIWKHLUSRZHUDQGEHDXW\ 7KH\DUHWRXFKHGE\WKHFRQVFLRXVQHVVZHLPDJLQHKRYHUV DQ[LRXVO\ RYHU ERXQGDULHV RI VOHHS DQG GHDWK« 7KH OLSV DUH YDULRXVO\ RSHQHG FORVHG KDOIFORVHG IL[HG LQ WUDQVL WLRQDO SRVLWLRQV EHWZHHQ VPLOLQJ JULPDFLQJ VSHDNLQJ GULQNLQJ 7KH IDFHV VHHP WR KDYH EHHQ VWUXFN D EORZ WKRXJK WKHUH LV QR HYLGHQFH RI ZRXQGV RQO\ DZDUHQHVV UHFRLOLQJXSRQLWVHOI« 6FKXPDQQ·VILJXUHVDUHQRWFRPPRQFDUGERDUGFXWRXWV VLPSOLV WLFDOO\ FRPPXQLFDWLQJ D SUHVHOHFWHG UDQJH RI PRUDO LPSHUDWLYHV 7KH\ DUH LPEXHG ZLWK D ZLVGRP WKDW VSHDNV WKH ODQJXDJH RI HVVHQFHV IURP D UHJLRQ EH\RQG WKH SXUYLHZ RI LQGLYLGXDOLW\ DQG WLPH ,Q VR IDU DV 6FKXPDQQ XVHV SXSSHWV UDWKHU WKDQ DFWRUV KLV SHUIRUPHUV KDYH D PRUH SDVVLYH UROH WKDQ ZH DUH DFFXVWRPHG WR VHHLQJ LQ WKH WKHDWUH ,Q IDFW 6FKXPDQQ GRHV QRW UHDOO\ UHJDUG WKH SHUIRUPHUVZLWKZKRPKHZRUNVDVDFWRUVLQWKHWUDGLWLRQDOVHQVHDW DOO KHFDOOVWKHP¶RSHUDWRUV· ²DZRUGWKDWHPSKDVLVHVWKHSULPDF\RI WKH SXSSHW DW WKH FRVW RI DQ\ FUHDWLYLW\ RQH PD\ KDELWXDOO\ H[SHFW IURP DQ DFWRU LQ D SHUIRUPDQFH 0DQ\ RI WKH RSHUDWRUV 6FKXPDQQ XVHV DUH QRQSURIHVVLRQDO ² ZKLFK VXLWV KLP ERWK ILQDQFLDOO\ DQG DUWLVWLFDOO\ +H OLNHV WKH URXJK HGJH KLV LQH[SHULHQFHG FDVW JLYHV WR KLVSHUIRUPDQFHV &URXFKLQJ RQ WKH IORRU KH WHOOV XV WKURXJK D KDQGPLNH WKH VLPSOH VWRU\ RI WKH SOD\ DV LW XQIROGV :KHQ QHFHVVDU\
3(7(56&+80$11
KH WDNHV SDUW LQ WKH DFWLRQ RU DFFRPSDQLHV WKH SOD\HUV RQ WKH YLROLQ /LWHUDOO\ KH VWDJHPDQDJHV WKH VKRZ EHIRUH RXU H\HV DQG QR DWWHPSW LV PDGH WR FRQFHDO E\ FRQYHQWLRQDO VWDJHFUDIWWKHXQWLG\VHDPVRUXQILQLVKHGMRLQV :KDWKHLV WU\LQJ WR FRPPXQLFDWH ² KLV HVVHQWLDO YLVLRQ RI PDQ DQG *RG²LVPRUHLPSRUWDQWWKDQWKHVXSHUILFLDOLWLHVRIVWDJH FUDIW 7KH SDVVLYLW\ RI WKH SHUIRUPHU SHUPLWV 6FKXPDQQ WR FUHDWH LPDJHV WKDW FRQVWLWXWH SHUKDSV WKH PRVW PHPRUDEOH DVSHFW RI KLV WKHDWUH $Q\RQHZKRKDVVHHQWKHVZDUPRISLJV· KHDGVLQ7KH&U\RI WKH 3HRSOH IRU 0HDW RU WKH LPSULVRQHG 9LHWQDPHVH ZRPDQ FRYHUHG LQ UROOV RI EULJKW UHG WDSH LQ )LUH ZLOO WHVWLI\ WR WKH HQGXULQJGLUHFWQHVVRI6FKXPDQQ·VYLVXDOYRFDEXODU\ ,WLVDODQJXDJH PDGH SRVVLEOH E\ WKH IDFW WKDW 6FKXPDQQ·V DFWRUV H[HFXWH KLV LQVWUXFWLRQVZLWKRXWLPSRVLQJXSRQKLVSRHWU\WKHLURZQYLVLRQ RI WKH ZRUOG 6FKXPDQQ·V DFWRUV GR QRW SHUIRUP LQ D SOD\ DV PXFK DV PDNHWKDWSOD\SRVVLEOHE\UHIUDLQLQJIURPSHUIRUPLQJ 6FKXPDQQ·V VHQVH RI WKH LPSRUWDQFH RI VKDULQJ H[WHQGV WR WKH SURFHVVRIFRQVWUXFWLQJWKHVKRZ RIPDNLQJWKHSXSSHWV RIVHOHFWLQJ WKHPHV ,Q7KH%UHDGDQG3XSSHW7KHDWUH 6WHIDQ%UHFKWGLVFXVVHVWKH PDNLQJRI$0RQXPHQWIRU,VKL (YHU\RQH ZDV HQFRXUDJHG WR EULQJ DV PDQ\ IULHQGV DV SRVVLEOH« 6HYHUDO SHRSOH ZHUH SXW WR ZRUN LQNLQJ WKHVH SULQWLQJ EORFNVDQGSULQWLQJWKHPRQEHGVKHHWV 2WKHUVFRQVWUXFWHG WRS KDWV IRU WKH %XWFKHUV IURP FRUUXJDWHG FDUGERDUG 6WLOO RWKHUV EHJDQ PDNLQJ PDVNV « >IURP@ QHJDWLYH SODVWHU PRXOGV ZKLFK KDG EHHQ PDGH RYHU WKH FOD\ PRGHOV VFXOSWHGE\3HWHU« %UHFKW E ²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
3(7(56&+80$11
WLRQ ZLWK UHJDUG WR FHUWDLQ LVVXHV ,Q 6FKXPDQQ VHW DERXW GHQRXQFLQJ WKH 9LHWQDP ZDU E\ SODFLQJ SXSSHWV LQ VHTXHQFH LQ D SDUDGHVRDVWRPDNHDVLPSOHDOOHJRU\ *LDQW SXSSHW KHDGV RI 9LHWQDPHVH ZRPHQ FKDLQHG WRJHWKHU WKHLUVWDUNZKLWHIDFHVERXQGE\EODFNEOLQGIROGV $PRFNZRRGHQDHURSODQH ZLWKVKDUN·VWHHWK GLYLQJRXWRI WKH0DUFKVN\ $EDQGRIVNXOOKHDGV EORZLQJDQXQHDUWKO\ WXQH RQ KRUQV LPSURYLVHG IURP ZDVKLQJ PDFKLQH DJLWDWRUV DQGUDWWOLQJDGLUJHRQROGJDVROLQHFDQV %UHFKW D $PRQJWKHVNXOOPHQ ZKRUHSUHVHQWHGZDU DQGWKHZRPHQ ZKR UHSUHVHQWHG VXIIHULQJ DQG JRRGQHVV 6FKXPDQQ LQFOXGHG SXSSHWV GHSLFWLQJ &KULVW DQG KLV GLVFLSOHV 6FKXPDQQ·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
3(7(56&+80$11
,QWKHHDUO\ V6FKXPDQQEHJDQWRXVHWKH¶FLUFXVIRUPDW· WKDW SHUPLWWHGKLPWRSUHVHQWDGLYHUVLW\RIPDWHULDOXQGHUWKHXPEUHOOD RIDVLQJOHVKRZ $IWHU6FKXPDQQGLVEDQGHG7KH%UHDGDQG3XSSHW 7KHDWUH LQ WKHVH EHFDPH DQQXDO RXWGRRU FHOHEUDWLRQV WR ZKLFK DQ\RQH ZKR FDUHG WR DWWHQG ZDV LQYLWHG 7KH LGHD ZDV WR IRUPDFRPPXQLW\DURXQGDQHYHQWVHWLQQDWXUHWKDWZRXOGDYDLORI ZKDW 6FKXPDQQ VDZ DV¶WKH FRQVROLQJ SHUVSHFWLYH RI QDWXUH·V HYHU ODVWLQJERXQW\ QDWXUDOOLIH·VVHOIUHJHQHUDWLYH²UHVXUUHFWLYH ²SRZHU·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·VUHOD WLRQVKLSZLWKWKHHOHPHQWV ,WZDVDVWRU\WKDWVRXJKWWRSODFHGHDWK DQGHYHQVODXJKWHU LQWKHFRQWH[WRIWKHYLHZWKDWOLIHJRHVRQ 7KH UHEHOOLRXV6FKXPDQQRIWKHSURWHVWPDUFKHVKDGE\QRZOHDUQWWKH ZLVGRPRIDFFHSWLQJWKHLQHYLWDEOHDVQDWXUDO RIFHOHEUDWLQJLWHYHQ 5HVLJQDWLRQZDVQRWVXUUHQGHU LWZDVDQDZDNHQLQJ ,WZDVDPRYH PHQW IURP GDUNQHVV WR OLJKW IURP GHDWK WR UHVXUUHFWLRQ ,W ZDV D UHFRJQLWLRQRIWKHIDFWWKDWHYLOLVDSDUWRIWKHZRUOGDQGWKDWWKH ZRUOGDVDZKROHLVVHOIUHMXYHQDWLQJ 1RWHV
*HRUJH'HQQLVRQRQ6FKXPDQQ·V)LUH LQ6DLQHU $ 7KH5DGLFDO 7KHDWUH1RWHERRN 1HZ
-26(3+&+$,.,1
)XUWKHUUHDGLQJ %UHFKW 6 D 7KH %UHDG DQG 3XSSHW 7KHDWUH 9RO 2QH /RQGRQ 0HWKXHQ ³³ E 7KH%UHDGDQG3XSSHW7KHDWUH 9RO 7ZR /RQGRQ 0HWKXHQ 6+20,70,77(5
-26(3+&+$,.,1 ² $OWKRXJK -RVHSK &KDLNLQ VWDUWHG WKH 2SHQ 7KHDWUH LQ 1HZ
-26(3+&+$,.,1
DFWRUV¶UHFRJQLVH· WKHLUVHUSHQWDIWHU LWKDVEHHQDVVHPEOHG 7KHPLQG SOD\VQRSDUWLQGHWHUPLQLQJZKDWWKHERG\ZLOOFUHDWH 7KH 6HUSHQW GUHZ KHDYLO\ RQ &KDLNLQ·V ZRUN EHWZHHQ DQG ZKHQ WKH 2SHQ 7KHDWUH ZDV DEOH WR ZRUN LQ UHKHDUVDO VLWXD WLRQV ZLWKRXW IRUPDOO\ FRPPLWWLQJ WR WKHDWULFDO SHUIRUPDQFHV ¶0\ UHDO LQWHUHVW LV LQ LQYHVWLJDWLQJ WKLQJV· REVHUYHG &KDLNLQ ¶>I@RUPLQJ DQH[HUFLVHLVRQHRIWKHPRVWLPSRUWDQWWKLQJVDWKHDWHUSHUVRQFDQ GR· &KDLNLQ LQ LELG ,Q KHU ERRN -RVHSK &KDLNLQ (LOHHQ %OXPHQWKDO GHVFULEHV VRPH RI WKH H[HUFLVHV WKDW ZHUH LQYHQWHG LQ WKLV SHULRG DQG KDYH VXEVHTXHQWO\ EHFRPH WKH VWRFN LQ WUDGH RI WKHDWUHZRUNVKRSVDOORYHUWKHZRUOG &KDLNLQDOVRKDGWKHDFWRUVVLPSO\¶WU\RQ· GLIIHUHQWERGLHV WR GLVFRYHU WKH HPRWLRQV WR ZKLFK WKRVH SK\VLFDO VWDWHV FRUUHVSRQGHG 7KH 2SHQ 7KHDWUH H[SHULPHQWHG ZLWK YDULRXVZDONV«WRFRQQHFWDFWRUVZLWKFKDUDFWHUVWKURXJK WKHLUERGLHVUDWKHUWKDQWKURXJKZRUGVRUHPRWLRQV +HKDG WKH DFWRUV PRYH DV LI WKH\ ZHUH IO\LQJ RU IORDWLQJ DV LI WKH DLU ZHUH FKDQJLQJ GHQVLW\ RU WHPSHUDWXUH DURXQG WKHP « >7@KH\ OHW SK\VLFDO LPDJHV RI LQDQLPDWH REMHFWV VXFK DV ZHDSRQV LQIRUP WKHLU PRYHPHQW LQ RUGHU WR GLVFRYHU HPRWLRQDOVWDWHV ,ELG 7KH H[HUFLVHV HQFRXUDJHG WKH DFWRUV WR EXLOG XS D UHSHUWRLUH RI FRUUHVSRQGHQFHVEHWZHHQH[WHUQDOO\LPSRVHGVRXQGVDQGPRYHPHQW SDWWHUQV DQG WKH LQWHUQDO VWDWHV RI IHHOLQJ WKH\ JHQHUDWHG -XVW DV ODQJXDJH XVHV UK\WKP DQG PHWDSKRU WR OLQN LGHDV VR DOVR SRVWXUH DQG VRXQG QRZ VHW XS D ODWWLFH RI DVVRFLDWLRQV WKDW FRQQHFWHG GLIIHUHQW DUHDV RI VLJQLILFDQFH 7KH LQWHUHVW RI &KDLNLQ·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« 8VLQJNLQHWLFLPSXOVHVWRORFDWH
-26(3+&+$,.,1
LQQHUVWDWHV DFWRUVZHUHDEOHWRGLVFRYHUHPRWLRQVWKDWKDG QRWEHHQLQWKHLUH[SHULHQFHEHIRUH ,ELG 1RWLFHWKDWWKHSDWWHUQVRIVRXQGDQGPRYHPHQWDUHHQJDJHGLQGH SHQGHQWO\RIFRQFHSWXDOWKRXJKW 7KHSXUSRVHRIWKHH[HUFLVHLVQRW WRXVHWKHERG\WRH[SUHVVZKDWKDVDOUHDG\EHHQHQYLVDJHG EXW WR DOORZWKHPXVFOHVWROHDGWKHPLQGLQWRQHZUHJLRQVRIH[SHULHQFH WKDW FDQQRW EH HQWHUHG LQWR LQWHOOHFWXDOO\ $V WKH DFWRUV DOWHU WKH SK\VLFDOLPSXOVHVWKH\UHFHLYH WKH\VFXOSWWKHLUHPRWLRQV 7KH\SOD\ SDOSDEO\ZLWKZKDWLVLQFRUSRUHDO ,QVSLWHRI&KDLNLQ·VDYHUVLRQWRLQVWLWXWLRQDOLVHGSHUIRUPDQFH KH GLG UHTXLUH VSHFWDWRUV LI RQO\ EHFDXVH WKH UHODWLRQVKLS EHWZHHQ WKH SHUIRUPHUDQGWKHDXGLHQFHIRUPHGDYLWDOSDUWRIWKHDUHDKHZDV LQYHVWLJDWLQJ 2EVHUYHUVZHUHWKHUHIRUHLQYLWHGWRDWWHQGZRUNVKRSV IURP WLPH WR WLPH 7KHVH UDSLGO\ WRRN RQ WKH DLU RI H[SHULPHQWDO YDULHW\ VKRZV ZLWK D QXPEHU RI GLIIHUHQW LWHPV PDNLQJ XS WKH SURJUDPPH 6RPHRIWKHVKRUWSOD\VWKDWZHUHXVHGLQWKLVZD\ZHUH SXW WRJHWKHU DV $PHULFD +XUUDK 7KLV ZDV WKH EHJLQQLQJ RI WKH¶VHFRQGSKDVH· RIWKH2SHQ7KHDWUH·VZRUN 7KH¶SXUH· ZRUNRI WKH ILUVW WKUHH \HDUV QRZ JDYH ZD\ WR D SHULRG GXULQJ ZKLFK WKH JURXS SXW WRJHWKHU D QXPEHU RI WKHDWUH SLHFHV RI ZKLFK 7HUPLQDO 7KH0XWDWLRQ6KRZ DQG1LJKWZDON DUHWKHEHVW NQRZQ (DFKRIWKHVHZDVFUHDWHGE\WKHJURXSLQZRUNVKRSUDWKHU WKDQVFULSWHGLQDGYDQFHE\DSOD\ZULJKW +RZHYHU WKH JURXS GLG RQ HDFK RFFDVLRQ KDYH RQ KDQG D UHVL GHQW SOD\ZULJKW ZKRVH MRE LW ZDV WR JLYH VKDSH WR WKH PDWHULDO JHQHUDWHG LQ ZRUNVKRS 6XVDQ
-26(3+&+$,.,1
UK\WKPWDSSHGRQDGUXP DVHWRIREMHFWVRUPXVLFDOLQVWUXPHQWV D VWDQFHRUDPRYHPHQWSDWWHUQ²ZKLFKJHQHUDWHGDQLPDJHRUDVWDWH RI EHLQJ 7KH VNLOO RI WKH GLUHFWRU FRQVLVWHG LQ NQRZLQJ ZKLFK DFWLRQV ZHUH PRVW OLNHO\ WR EH SURGXFWLYH ,I WKH H[HUFLVHV ZHUH IHUWLOH WKHDFWRUKDGDZD\RIFUHDWLQJDFKDUDFWHUWKDWZDVLPPXQH WRVHOIFRQVFLRXVQHVV 7KHUHVXOWRIWKLVZRUNZDVDVHULHVRIGUDPDWLFSHUIRUPDQFHVLQ ZKLFK¶WKHWH[WFDQQRWEHIXOO\XQGHUVWRRGDSDUWIURPWKHSURGXF WLRQ 9LVXDO DQG YHUEDO SDWWHUQV DUH LQWHUZRYHQ ZRUG VRXQG DQG LPDJHUHLQIRUFHDQGHOXFLGDWHRQHDQRWKHU· 7HUPLQDO ZDVSOD\HGRQ D VWDJH ZLWK D SURVFHQLXP DUFK RQ ZKLFK ILYH VODEV RI ZRRG GHSLFWHGDQXPEHURIGLIIHUHQWVHWWLQJV KRVSLWDOEHGVLQRQHVFHQH VWUHWFKHUV RU JUDYHV LQ RWKHUV 7KH OLJKWLQJ ULJV ZHUH YLVLEOH WR WKH DXGLHQFH DQG RFFDVLRQDOO\ EHFDPH SURSV LQ WKH GUDPD ZKHQ IRU LQVWDQFH WKH\ZHUHXVHGDVLQVWUXPHQWVRIWRUWXUH 7KHDFWRUVZHUH DOZD\VSUHVHQWRQVWDJH VWHSSLQJLQWRWKHLUUROHVVLPSO\E\HQWHULQJ WKHSRRORIOLJKWWKDWGHOLQHDWHGWKHSOD\LQJDUHD 7KH\ZRUHVLPSOH ZKLWHJDUPHQWVWKDWVXJJHVWHGKRVSLWDOXQLIRUPVLQVRPHVFHQHVDQG WKH FORWK LQ ZKLFK (J\SWLDQ PXPPLHV ZHUH ZUDSSHG LQ RWKHUV 7KH\ XVHG WDPERXULQHV GUXPV FKDQWV DQG LQFDQWDWLRQV WR FUHDWH D ¶SXUH· VWUXFWXUHLQZKLFK¶>P@HDQLQJGRHVQRWDFFRPSDQ\WKHPXVLF EXWLVFRQWDLQHGZLWKLQLW· 7KHDFWRUVVSRNHLQDPDQQHUWKDWGLG QRWMXVWFRPPXQLFDWHWKHLGHDRIDZRUGEXWERUHWHVWLPRQ\WRWKH FRPSOHWH H[SHULHQFH RI LW %\ HPSKDVLVLQJ WKH YLVFHUDO TXDOLWLHV RI VRXQG VXFK DV UK\WKP WRQH DQG WLPEUH WKH DFWRUV VRXJKW WR PDNH WKHLUYRLFHVPRUH¶SUHVHQW· ¶3UHVHQFH· ZDVDORDGHGZRUGIRU&KDLNLQ ,WDSSHDUHGLQWKHWLWOH RI KLV ERRN DQG UHIHUUHG WR WKH TXDOLW\ RI EHLQJ XWWHUO\ DQG DEXQ GDQWO\ DOLYH 7KLV DQLPDWLRQ ZDV VHHQ DV DQ DQWLGRWH WR WKH DSDWK\ WKDWVHHPHGWR&KDLNLQWRGRJWKHZRUOGDQGUHQGHUSHRSOHXQDEOH WRUHVSRQGFRPSDVVLRQDWHO\WRRQHDQRWKHU 7KHDWUH·VDIILUPDWLRQRI WKH TXDOLW\ RI EHLQJ DOLYH WKHUHIRUH KDG D SROLWLFDO DVSHFW LW PDGH SHRSOH VHQVLWLYH WR WKH OLWWOH DSSUHFLDWHG PLUDFOH RI XQTXHQFKHG YLWDOLW\ &KDLNLQRIWHQVSRNHRIWKHQHHG¶WRXQGHUVWDQGWKHVWDJHDVD ZHDSRQ· LELG KHRIWHQVDLGKHZDQWHGDFWRUVZKRZHUH¶SROLWL FDOO\RULHQWHG· LELG &KDLNLQZDVLQWKLVVHQVHYHU\W\SLFDORID JURZLQJJURXSRIDQWLHVWDEOLVKPHQWDUWLVWVZKRKDGEHFRPHSURPL QHQW LQ 1HZ
-26(3+&+$,.,1
IRUPV RI WKHDWUH WKDW &KDLNLQ VXEVHTXHQWO\ GHYHORSHG KDG D FRYHUW SROLWLFDODVSHFW )RU&KDLNLQ WKHSUREOHPZLWKQDWXUDOLVPZDVWKDWLW LQVLVWHGRQDFWRUVOLPLWLQJWKHPVHOYHVWRDUHSHUWRLUHRIDFWLRQVWKDW FRQIRUPHGWRZKDWZDVVRFLDOO\DFFHSWDEOH 7KLVVHHPHGWR&KDLNLQ FRHUFLYH QDWXUDOLVP UHVWULFWHG IUHHGRP DQG ERXQG SHRSOH WR WKH LQDXWKHQWLFIDFDGHWKDWLWZDVWKHUHVSRQVLELOLW\RIWKHDWUHWRFRPEDW (YHQWKHQRWLRQRIFROOHFWLYHFUHDWLRQZDVLQVRPHZD\VDIXQF WLRQRI&KDLNLQ·VSROLWLFV (QVHPEOHZRUNDWWKH2SHQ7KHDWUHZDVD SURGXFW RI WKH SULQFLSOH WKDW PHPEHUV RI D JURXS PXVW EH MRLQWO\ UHVSRQVLEOHIRUGHWHUPLQLQJWKHQDWXUHRIWKHZRUNSURGXFHG $OZD\V DQDFWRUDWKHDUW &KDLNLQUHPDLQHGZDU\RIWKHDVFHQGDQF\FXVWRP DULO\DFFRUGHGWRWKHGLUHFWRULQPRVWWUDGLWLRQDOWKHDWUHJURXSV 7KLV OHGWRDVRPHZKDWPLVJXLGHGUHOXFWDQFHWR¶OHDG·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¶:LQWHU3URMHFW· EXWOHGLWVRPHZKDW KDOIKHDUWHGO\ 7KH3URMHFWH[SORUHGWKHPDQQHULQZKLFKOLJKWLQJ PXVLFDODFFRPSDQLPHQWDQGVSDWLDODUUDQJHPHQWVDIIHFWHGDXGLHQFHV 7KHJURXSSXWWRJHWKHU5H$UUDQJHPHQWV DFROODJHRILPDJHV DERXWVRFLDOLQWHUDFWLRQ DQG 7RXULVWVDQG5HIXJHHV DVWXG\RI KRPHOHVVQHVV ,Q WKLV SHULRG &KDLNLQ DOVR ZHQW EDFN WR DFWLQJ ² DQRWKHUPDQLIHVWDWLRQRIKLVTXDOPVDERXWOHDGLQJDQHQVHPEOH +H SHUIRUPHGWZRPRQRORJXHV 7RQJXHV DQG6DYDJH/RYH WKDW KH FUHDWHG LQ FROODERUDWLRQ ZLWK 6DP 6KHSDUG &KDLNLQ ZHQW WKURXJK RSHQKHDUW VXUJHU\ LQ EXW FRQWLQXHG WR ZRUN ZHOO LQWRWKH V ,Q KHGLUHFWHGDQ2ELHZLQQLQJSURGXFWLRQRI 6DPXHO %HFNHWW·V 7H[WV IRU 1RWKLQJ DQG EHWZHHQ DQG ZRUNHGZLWK
6DLQHU $ 7KH 5DGLFDO 7KHDWUH 1RWHERRN 1HZ
(8*(1,2%$5%$
,ELG ,ELG
)XUWKHUUHDGLQJ %OXPHQWKDO ( -RVHSK &KDLNLQ &DPEULGJH &DPEULGJH 8QLYHUVLW\ 3UHVV &KDLNLQ - 7KH3UHVHQFHRIWKH$FWRU 1HZ
(8*(1,2%$5%$ ² 1R GLUHFWRU VLQFH 6WDQLVODYVN\ KDV VWXGLHG WKH DUW RI DFWLQJ PRUH PHWLFXORXVO\ WKDQ (XJHQLR %DUED ,W LV QRW VXUSULVLQJ WKDW 5LFKDUG 6FKHFKQHUVKRXOGKDYHSODFHG%DUEDDQG6DYDUHVH·V 7KH6HFUHW$UWRI WKH3HUIRUPHU DORQJVLGH%KDUDWD·V1DW\DVKDVWUD DQG=HDPL·V.DGHQVKR DV RQHRIWKHPRVWWKRURXJKDQGIDUUHDFKLQJLQYHVWLJDWLRQVLQWRZKDWLW LVWREHDSHUIRUPHU 1RWHYHQ*URWRZVNL %DUED·VPHQWRU FRPSLOHG TXLWHVRFRPSUHKHQVLYHDQDFFRXQWRIWKHWUDLWVJUHDWSHUIRUPHUVDOO RYHU WKH ZRUOG KDYH LQ FRPPRQ %DUED·V V\VWHPDWLF H[SORUDWLRQ RI WKHVH IHDWXUHV FRQVWLWXWHV D IRUPLGDEOH DFKLHYHPHQW ² WKH OLNHV RI ZKLFKZRXOGKDUGO\KDYHEHHQFRQFHLYDEOHLQ ZKHQWKH,WDOLDQ IURP*DOOLSROLIRXQGHGWKH2GLQ7HDWUHWLQ+ROVWHEUR DVPDOOWRZQ LQ QRUWKZHVW 'HQPDUN ZLWK D JURXS RI ZRXOGEH DFWRUV ZKR KDG EHHQUHMHFWHGE\WKH1DWLRQDO7KHDWUH6FKRROLQ2VOR $W WKH WLPH %DUED·V H[SHULHQFH RI WKH WKHDWUH ZDV OLPLWHG WR KDYLQJ ZDWFKHG *URWRZVNL·V FRPSDQ\ DW ZRUN IRU WKUHH \HDUV 1RW VXUSULVLQJO\ %DUED·V HDUO\ ZRUN FRQVLVWV DOPRVW HQWLUHO\ RI LQWUR GXFLQJKLVIOHGJOLQJFRPSDQ\ERWKWRH[HUFLVHVVXFKDVVRPHUVDXOWV VKRXOGHUVWDQGV KHDGVWDQGVDQGIDFLDOPDVNVDQGWRWKHH[SORUDWLRQ RIWKHVHOIWKURXJKSK\VLFDOZRUN DOORIZKLFKZHUHDQLQWULQVLFSDUW RI *URWRZVNL·V ZRUN GXULQJ WKLV SHULRG $V ,EHQ 1DJHO 5DVPXVVHQ REVHUYHG :HZHUHZRUNLQJYHU\ORQJKRXUVWUDLQLQJDQGUHKHDUVLQJ ,WZDVGXULQJWKLVLQWHQVHZRUNWKDW,IRXQGP\RZQYRLFH , IRXQG ZKDW ZDV P\ RZQ ZD\ RXW RI H[KDXVWLRQ RU WKURXJKSXVKLQJSDVWZKDWEORFNHGPH )URPKHUH,KDGD EHJLQQLQJ DSODFHWRGLVFRYHUZKR,DPDVDQDFWUHVV :DWVRQ
(8*(1,2%$5%$
7KH LPSRUWDQW WKLQJ KHUH ZDV QRW WKDW 5DVPXVVHQ·V YRLFH KDG FKDQJHG RYHUQLJKW LQWR D ULFK DQG VRQRURXV PHGLXP EXW WKDW LQ PDNLQJWKLVOHDS 5DVPXVVHQKDGGLVFRYHUHGVRPHWKLQJIXQGDPHQWDO DERXW KHUVHOI ¶7UDLQLQJ LV D SURFHVV RI VHOIGHILQLWLRQ· ZURWH %DUED IRU ZKRP WKHDWUH KDG EHFRPH D ZD\ RI WHVWLQJ RQH·V UHVSRQVHVDWWKHOLPLWVRISK\VLFDOHQGXUDQFH ,WZDVDSSURSULDWH WKHUHIRUH WKDW%DUED·VDFWRUVVKRXOGHYHQWXDOO\ EHJLQ WR WUDLQ LQGHSHQGHQWO\ )HUGLQDQGR 7DYLDQL·V GHVFULSWLRQ RI D WUDLQLQJVHVVLRQDWWKH2GLQLVDVWXG\RIKDUPRQ\LQGLYHUVLW\ ZKDW VHHPV OLNH DQDUFK\ LV LQ IDFW DQ H[HUFLVH LQ SUHFLVLRQ WKH VHHPLQJ EHGODP D FDUHIXOO\ RUFKHVWUDWHG H[SORUDWLRQ RI SHUVRQDOLW\ WHQDFLW\ DQGVHOIKRRG 6RPHDFWRUVEHJLQZLWKJ\PQDVWLFV ZKLOHRWKHUVUXQRUGR DFUREDWLF H[HUFLVHV >7@ZR DFWRUV WZLVW DQG WXUQ RQ XQL F\FOHV OLNH FLUFXV DFUREDWV .DWKDNDOL VFHQHV DSSHDU DV VXGGHQ IODVKHV « D PDQ LQ WDLOV GDQFHV DV LI DQ HOHFWULF FXUUHQWLVUXQQLQJWKURXJKKLP DVZRUGVPDQGXHOVZLWKKLV VKDGRZ WKHFRORUVRI%DOLEXUVWIRUWK IROORZHGLPPHGLDWHO\ E\WKHEULJKWSUHVHQFHRIWKHPXWH.DWKULQHIURP0RWKHU &RXUDJH :DWVRQ ,Q D QXPEHU RI VHTXHQFHV RI WKHVH WUDLQLQJ URXWLQHV ZHUH VWUXQJ WRJHWKHU LQ WKH IRUP RI D¶VWUHHW WKHDWUH· SURGXFWLRQ FDOOHG 7KH%RRNRI'DQFHV 7KH¶SOD\· EHJDQZLWKEULJKWO\FRVWXPHGDFWRUV UXQQLQJ KHOWHUVNHOWHU WKURXJK D VPDOO WRZQ LQ VRXWKHUQ ,WDO\ EORZLQJZKLVWOHVDQGEHDWLQJGUXPVWRDWWUDFWDQDXGLHQFH 2QFHDQ DXGLHQFH KDG JDWKHUHG WKH DFWRUV UHYHUWHG WR SUHVHQWLQJ D QXPEHU RIWKHLUWUDLQLQJURXWLQHVVXFKDVPRFNFRPEDWDQGGDQFHVRQVWLOWV :KLUOLQJ DURXQG LQ YLUWXRVR IDVKLRQ RQ WRS RI KLJK VWLOWV WKUHHRIWKHPGLDORJXHG FKDQJHGWKHUK\WKPRIWKHPRYH PHQW WRRNWKHYLOODJHUV· EUHDWKDZD\ UDQLQWRWKH\DUGVDQG UDSLGO\ FKDQJHG PDVNV DQG IDFLDO H[SUHVVLRQV ,Q IURQW RI WKHP ZHQW DGUXPPHU RQHDFWUHVVSOD\LQJ WKH KDUPRQLFD DQGWZRFORZQVUDQDPRQJWKHFKLOGUHQ ,ELG 7KH 0LOOLRQ ZKLFK ZDV SUHVHQWHG LQ ERWK¶VWUHHW WKHDWUH· DQG¶VWXGLR· PRGHV ZDVUDWKHUGLIIHUHQWIURP 7KH%RRNRI'DQFHV LQ WKDW LW ERUH WUDFHV RI D QXPEHU RI IRUHLJQ IRUPV RI GUDPD VXFK DV
(8*(1,2%$5%$
.DWKDNDOLDQG%DOLQHVHGDQFH 7KHLQIOXHQFHRIWKHVHIRUPVRIGUDPD GDWHVEDFNWR ZKHQYDULRXVPHPEHUVRIWKHFRPSDQ\ZHQWWR GLIIHUHQW SDUWV RI WKH ZRUOG WR VWXG\ VRPH RI WKH ORFDO IRUPV RI WKHDWUH 7KH DFWRUV·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·V LGHD ZDV WR EULQJ WRJHWKHU SHUIRUPHUV IURP YDULRXV SDUWV RI WKH ZRUOG WR DGGUHVV WKH TXHVWLRQ DV WR ZKHWKHU WKH\ XVHG IXQGDPHQWDOO\ VLPLODU WHFKQLTXHV WR JHQHUDWH SUHVHQFHRQVWDJH 'LIIHUHQWDFWRUV LQGLIIHUHQWSODFHVDQGWLPHV LQVSLWHRIWKH VW\OLVWLF IRUPV VSHFLILF WR WKHLU WUDGLWLRQV KDYH XVHG FHUWDLQ SULQFLSOHV ZKLFK WKH\ KDYH LQ FRPPRQ ZLWK DFWRUV IURP RWKHU WUDGLWLRQV 7R WUDFH WKHVH¶UHFXUUHQW SULQFLSOHV·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
(8*(1,2%$5%$
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·V GDQFH WR ZKLFK %DUED GUDZV DWWHQWLRQ KDYH OHVV WR GR ZLWK WKH DSSHDUDQFH RI 2GLVVL WKDQ ZLWK LWV PDLQ VSULQJV RI HQHUJ\ 7KH\ DOVR MXVW KDSSHQ WR EH WKRVH IHDWXUHV WKDW 2GLVVL KDV LQ FRPPRQ ZLWK PDQ\ RWKHU JUHDW SHUIRUPDQFH WUDGL WLRQV WKH ZRUOG RYHU ,W IROORZV WKDW DFWRUV DOO RYHU WKH ZRUOG JHQHUDWHHQHUJ\LQPXFKWKHVDPHZD\²E\FKDQJLQJSRVWXUHDQG DGMXVWLQJ PXVFXODU WHQVLRQV LQ FHUWDLQ IXQGDPHQWDO ZD\V 2QH VXFK WHFKQLTXHZDVGXEEHGWKH¶RSSRVLWLRQSULQFLSOH· $FFRUGLQJWRWKHRSSRVLWLRQSULQFLSOH LIRQHZDQWVWRJRWR WKH OHIW RQH EHJLQV E\ JRLQJ WR WKH ULJKW WKHQ VXGGHQO\ VWRSVDQGWXUQVOHIW ,IRQHZDQWVWRFURXFKGRZQ RQHILUVW ULVHV XS RQ WLSWRH DQG WKHQ FURXFKHV GRZQ « , NQRZ QRZWKDWWKLVFRQYHQWLRQ«LVDUXOHZKLFKFDQEHIRXQG WKURXJKRXWWKH2ULHQW %DUEDDQG6DYDUHVH $OWKRXJK ,67$ GLG QRW DQVZHU WKH TXHVWLRQ DV WR ZK\ VSHFWDWRUV ILQG WKH SULQFLSOH RI RSSRVLWLRQ DUUHVWLQJ LW GLG HVWDEOLVK WKDW WKH SULQFLSOH GRHV UHFXU DOPRVW XQLYHUVDOO\ DQG LV ZLGHO\ UHFRJQLVHG DPRQJVW SHUIRUPHUV DV WKH¶VHFUHW· LQJUHGLHQW WKDW EULQJV YLWDOLW\ WR WKHLUSHUIRUPDQFHV 'XULQJWKHILUVWWHQ\HDUVRIWKH2GLQ %DUEDSURGXFHGRQO\WKUHH PDMRU SOD\V 2UQLWRILOHQH .DVSDULDQD DQG )HUDL $OWKRXJKHDFKRIWKHVHZDVEDVHGRQDQH[LVWLQJVFULSW WKHWH[WZDV XVHG PHUHO\ DV D VRXUFH RI LGHDV DURXQG ZKLFK WKH DFWRUV EXLOW LPSURYLVDWLRQV RIWHQ ZRUNLQJ LQ LVRODWLRQ 9RFDO ZRUN ZDV DOVR FRQGXFWHG VHSDUDWHO\ IURP DFWLRQ DQG PRYHPHQW DQG UHFRPELQHG RQO\ PXFK ODWHU 7KLV OHG WR WKH DPRUSKRXV QDWXUH RI VRPH RI
(8*(1,2%$5%$
%DUED·VSURGXFWLRQVZKHUHE\VFHQHVIROORZRQHDQRWKHULQQRHDVLO\ GLVFHUQLEOHRUGHUDQGLPDJHVDUHXVHGWRFRPPHQWRQWKHDFWLRQ ,Q 2UQLWRILOHQH IRU H[DPSOH DQ H[HFXWLRQHU WDUJHWV KLPVHOI ZKLOH KLV YLFWLPUHDGVDOHWWHUIURPDFRQGHPQHGSULVRQHU $SXSSHWDWWHQGVD FURVVH[DPLQDWLRQZKLOHDWHDPRIDFWRUVVLQJDVRQJDERXWLQVWLWX WLRQDOLQMXVWLFH ,Q.DVSDULDQD DSVDOPLVVXQJDVQHZVRIDEHKHDGLQJ LVUHFHLYHG ,Q )HUDL DEODQNHWUHSUHVHQWVERWKWKHVZDGGOLQJFORWKHV RIDQHZERUQEDE\DQGWKHVKURXGRIDGHDGERG\ WKHWZRH[WUHPH SRLQWV RI KXPDQ H[SHULHQFH \RNHG WRJHWKHU E\ WKH PHWDSKRULFDO FDSDFLW\RIDVLQJOHREMHFW ,Q WKH HDUO\ V %DUED VWRSSHG ZRUNLQJ ZLWK H[LVWLQJ VFULSWV DQG EHJDQ WR SXW WRJHWKHU SHUIRUPDQFHV EDVHG HQWLUHO\ RQ WKH DFWRUV· LPSURYLVDWLRQV :RUN RQ D QHZ SURGXFWLRQ ZRXOG EHJLQ W\SLFDOO\ZLWKDQXPEHURIVXJJHVWLRQVWKDWZRXOGFRKHUHDURXQGDQ LGHD WKDW WKH JURXS ZRXOG UHWURVSHFWLYHO\ UHJDUG DV D WKHPH 7KH DFWRU·V LPSURYLVDWLRQV ZRXOG WKHQ SUHVHQW %DUED ZLWK D UDQJH RI YLVXDO RSWLRQV WKDW KH FRXOG FRPELQH LQWR VHTXHQFHV DW ZLOO )RU %UHFKW·V $VKHV IRU H[DPSOH WKH UDSH RI .DWWULQ ZDV D FRPSRVLWHLPDJHZKLFKFRPELQHGRQHDFWRU·VZRUNZLWKDERZORI ZDWHU ZLWK DQRWKHU·V DWWHPSW WR JHW .DWWULQ WR VPRNH ZKHQ VKH GLGQ·WZDQWWR %DUED VDZ WKH WZR ORRVH ELWV RI PDWHULDO LQGLYLGXDOO\ DQG WKHQ VLPXOWDQHRXVO\ +H WKHQ DVNHG WKH DFWRUV LQVWHDG RI GRLQJWKHLU¶VFHQHV· RQRSSRVLWHHQGVRIWKHURRPWRSXWWKH ERZO EHWZHHQ .DWWULQ·V OHJV 7KH MX[WDSRVLWLRQ RI LPDJHV ZRUNHG FUHDWLQJWKHHTXLYDOHQWRIUDSHZLWKRXWUDSH :DWVRQ ,QWKHSURGXFWLRQWKHGHOLEHUDWHFRQIODWLRQRIELRJUDSKLFDOGHWDLOV ZLWK WKH GUDPDWLF UHDOLW\ RI %UHFKW·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
(8*(1,2%$5%$
7KH¶YRLFHV· RIWKHIOXWHDQGWKHDFFRUGLRQ DQLPDWHGE\WZR DFWRUV LQ WKH SHUIRUPDQFH FRPPHQWHG RQ WKH DFWLRQ GLDORJXLQJ EHWZHHQ WKHPVHOYHV «¶VSHDNLQJ· ZLWK GHWDFK PHQW FRPPHQWLQJ LURQLFDOO\ RQ WKH¶SDVVLRQV· RI WKH ULFK DQGQREOHSHRSOH WKHQ RQWKHFRQWUDU\ WKH\ZHUHREHGLHQW VHUYDQWV ZRUNLQJ WR FUHDWH WKH VHWWLQJ RI WKHLU PDVWHUV· DFWLRQV WKH ZLQG RQ WKH 6LEHULDQ WXQGUD WKH QRLVH RI WKH KRUVHV· KRRYHV« %DUED ² 7KHLQVWUXPHQWVZHUHGURSSHGIRU 2[\UKLQFXV(YDQJHOLHW EXW WKH HPSKDVLV RQ XVLQJ WKH YRLFH DV WKRXJK LW ZHUH DQ LQVWUXPHQW UHPDLQHGDVWKHGLDORJXHZDVDOPRVWHQWLUHO\FRPSULVHGRIUHVRQDQW QRQVHQVHV\OODEOHVV\QWKHVLVHGRXWRIDSSUR[LPDWLRQVWR
<8.,21,1$*$:$
³³ 7KH3DSHU&DQRH WUDQV 5LFKDUG)RZOHU /RQGRQ 5RXWOHGJH %DUED ( DQG6DYDUHVH 1 7KH6HFUHW$UWRIWKH3HUIRUPHU $'LFWLRQDU\ RI 7KHDWUH$QWKURSRORJ\ WUDQV 5LFKDUG)RZOHU /RQGRQ 5RXWOHGJH :DWVRQ , 7RZDUGVD7KLUG7KHDWUH /RQGRQ 5RXWOHGJH 6+20,70,77(5
<8.,21,1$*$:$ ² 1LQDJDZDKDVWDNHQDVKLVPDLQUHSHUWRLUHWKH*UHHNWUDJHGLHVDQG WKH SOD\V RI 6KDNHVSHDUH DQG &KHNKRY +LV IRUHPRVW FRQFHUQ LQ GLUHFWLQJVXFKFODVVLFVLVWRILQGZD\VWREULGJHWKHVSDWLRWHPSRUDO JDSEHWZHHQSUHVHQWGD\-DSDQDQGKLVDXGLHQFHV XVXDOO\-DSDQHVH DQGWKHFODVVLFDOGUDPDWLFZRUOG 7KLVEULGJHIUHTXHQWO\WDNHVWKHIRUPRIDYLVXDOORFDOLVDWLRQ RUD PHWDWKHDWULFDOIUDPHZRUN RUERWK DVKDSSHQVLQWKH 1,1$*$:$ 0DFEHWK VHW LQ WKH 6DPXUDL ZRUOG RI -DSDQ·V $]XFKL 0RPR\DPD SHULRG ²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·V PLQGZKHQKHIRXQGKLPVHOIFRQYHUVLQJZLWKKLVGHDGIDWKHUZKLOH KHZDVSUD\LQJDWKLVIDPLO\DOWDU 7KLVH[SHULHQFHPDGHKLPUHDOLVH WKDWWKHSOD\FRXOGWDNHWKHIRUPRIDVWRU\DOOXGLQJWR¶RXU· DQFHV WRUV $QRWKHU H[DPSOH LV 7KH 7HPSHVW VXEWLWOHG ¶$ 5HKHDUVDO RQ D 1RK6WDJHRQ6DGR,VODQG· )RUDERXWWKLUW\PLQXWHVEHIRUHLW VWDUWHG DFWRUV DQG VWDJHKDQGV JDWKHUHG RQ RU QHDU WKH VWDJH ZKLFK KHOG DW LWV FHQWUH D GLODSLGDWHG RSHQDLU 1RK VWDJH 6RPH DFWRUV ZDUPHG XS LQGLYLGXDOO\ RWKHUV FKDWWHG ZKLOH SXWWLQJ RQ WKHLU FRVWXPHV 6WDJHKDQGV FKHFNHG WKH VHWV DQG SURSV DQG GUXPPHUV SUDFWLVHGRQWKHWUDGLWLRQDO6DGRGUXPV %\VKRZLQJKLVDFWRUVJRLQJ DERXW WKHLU OLIH LQ WKH WKHDWUH WKH GLUHFWRU FDOOHG WKH DXGLHQFH·V DWWHQWLRQWRWKHIDFWWKDWWKHSOD\ZDVJRLQJWREHDFWHGE\-DSDQHVH :KHQ LW ZDV WLPH WKH RQVWDJH GLUHFWRU ZKR ZDV WR SOD\ 3URVSHUR FDOOHGWKHFDVWDQGWKHWHFKQLFDOFUHZDURXQGKLPDQGJDYH
<8.,21,1$*$:$
WKHPLQVWUXFWLRQV 7KHPLQXWHKHJDYHWKHFXH WZRKXJHVWUXFWXUHV ZHUH SXVKHG IRUZDUG IURP HDFK VLGH RI WKH XSVWDJH 1RK VWDJH FRPELQLQJ DW WKH FHQWUH WR IRUP D ORRPLQJ VKLS $ VDLO GURSSHG GRZQ DQGVRXQGHIIHFWVRIWKXQGHUDQGOLJKWQLQJFUHDWHGDYLROHQW WHPSHVW 1LQDJDZDWKXVPDGH7KH7HPSHVW DSOD\ZLWKLQDSOD\ ZLWK 3URVSHUR·V PDJLF RYHUODSSLQJ WKDW RI WKH WKHDWUH 3URVSHUR·V PDJLF ERRN ZDV WKH SOD\HU·V SURPSWERRN 7RZDUGV WKH HQG RI WKH SHUIRU PDQFH 3URVSHURWKUHZLWDZD\DQGEURNHKLVVWDII 7KHOHDYHVRIWKH ERRNIDOOLQJVLOHQWO\WRWKHIORRUZHUHWRWDOO\EODQN 1LQDJDZD PDGH XVH RI FRPPRQ IDFWRUV EHWZHHQ WKH SOD\ DQG -DSDQHVH KLVWRU\ 7UDGLWLRQDOO\ DQ LVODQG IRU H[LOHV 6DGR ,VODQG ZDV WKHSODFHZKHUH=HDPL WKHJUHDW1RKPDVWHURIWKH0LGGOH$JHV ZDVH[LOHG DQGDIHZDQFLHQWRSHQDLU1RKVWDJHVVWLOOUHPDLQWKHUH ,WVHHPHGWR1LQDJDZDWKDWD1RKVWDJHRQ6DGRZRXOGEHSHUIHFW IRUWKH¶UHYHOV· RIWKHVSLULWVRIWKHLVODQG 7KLVZDVDSHUIHFWH[DPSOH RIKLVVHDUFKIRUFRQQHFWLRQVEHWZHHQWKHGUDPDDQGWKHUHDOOLIHRI ERWKWKHSDVWDQGWKHSUHVHQW 1LQDJDZD·VVHDUFKIRUDYLVXDOORFDOLVDWLRQDQGRUPHWDWKHDWULFDO IUDPHZRUN OLHV LQ WKH HPEDUUDVVPHQW KH VD\V WKDW KH IHHOV ZKHQ -DSDQHVHDFWRUVSOD\WKHSDUWVRI(XURSHDQFKDUDFWHUVLQ6KDNHVSHDUH RU *UHHN WUDJHGLHV +H WKXV WHQGV WR JLYH WKH GUDPD DQ $VLDQ RU -DSDQHVHYLVXDOFRQWH[W WKHUHE\NHHSLQJDFWRUVDQGDXGLHQFHVGHHSO\ URRWHGLQWKHLUUDFLDOPHPRULHVDVWKH\ZDWFKD:HVWHUQSOD\ (YHQ VR 1LQDJDZD LV IDLWKIXO WR WKH WH[W +H VLPSO\ GHVLJQV LW WR ILW WKH WLPHDYDLODEOHIRUSHUIRUPDQFH +HRQFHVDLG ¶,GRDOOWKDWLVZULWWHQ LQWKHVFULSW VWDJHGLUHFWLRQVDQGDOO %XW,DOORZP\VHOIWRDGGZKDW LVQRWZULWWHQ· SHUVRQDOFRPPXQLFDWLRQ 'HFHPEHU 1LQDJDZD·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¶JORULRXV VXPPHU E\ WKLV VRQ RI
<8.,21,1$*$:$
7KHDXGLHQFHFRXOGLQWHUSUHWWKLVXQIRUJHWWDEOHVFHQHDVDVLJQWKDW WKH FKDLQ RI UHYHQJH KDG EHHQ VWRSSHG RU VHH WKH ER\ DV WKH HSLWRPHRIWKHPLVHU\RIDEDWWOHILHOGIXOORIRUSKDQV ,Q3HULFOHV DODUJHJURXSRI$VLDQUHIXJHHVHQWHUHGIURPWKH DXGLWRULXPWRSHUIRUPWKHSOD\ 7KHUROHRIWKH*RZHUZDVSOD\HG E\ D ELZD KRVKL DQ LWLQHUDQW PHGLHYDO -DSDQHVH OXWH SOD\HU DQG KLV ZLIH ZKR ZHUH WKH KHDGV RI D GHMHFWHG WUDYHOOLQJ FRPSDQ\ 1LQDJDZD VDLG RI WKLV FRQFHSW WKDW WKH PRVW XQIRUWXQDWH SHRSOH KDYH WKH ULJKW WR GUHDP RI KDSSLQHVV +LV 3HULFOHV ZDV FRQFHLYHG DV WKHLUGUHDP WKHLUKRSH LQUHVSRQVHWRWKHSOD\·VVXJJHVWLRQWKDWLWV FKDUDFWHUVRYHUFRPHWKHLUPLVIRUWXQHVDQGDFKLHYHKDSSLQHVV $V KH RIWHQGRHV 1LQDJDZDERUURZHGIRUWKLVSURGXFWLRQIURPWUDGLWLRQDO -DSDQHVHSHUIRUPLQJDUWV²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¶UHDG·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·VFRVWXPHVRWKDW WKH DFWUHVV· VKRXOGHUV ZHUH FRPSOHWHO\ EDUH DQG KHU EUHDVWV DOPRVW YLVLEOH :KHQ WKH 7LWXV DFWRU VDZ KHU OLNH WKLV KH VSRQWDQHRXVO\ WRRN RII KLV FRDW WR FRYHU KHU QDNHGQHVV ZLWKRXW DQ\ LQVWUXFWLRQV IURPWKHGLUHFWRU $FFRUGLQJ WR 1LQDJDZD VORZ DFFXPXODWLRQ RI HPRWLRQV WKRXJKWVDQGDFWLRQVUHVXOWVLQWKHWKHDWULFDOHPERGLPHQWRIDSOD\·V FKDUDFWHUV 7KHSHUVRQDOLWLHVRIWKHFKDUDFWHUVDUHQRWZULWWHQLQWKH
<8.,21,1$*$:$
WH[W EXW DUH ERUQ GXULQJ UHKHDUVDOV +H VHDUFKHV IRU WKH FKDUDFWHUV E\ SDUWLFLSDWLQJ ZLWK WKH DFWRUV LQ D SURFHVV RI WULDO DQG HUURU DQG FRPSDUHV KLV GXW\ DV D GLUHFWRU ZLWK WKDW RI D PLGZLIH ZKR KHOSV GHOLYHUDEDE\ WKHSURGXFWLRQLVIDWKHUHGE\WKHWH[WDQGJLYHQERG\ E\WKH¶PRWKHULQJ· DFWRUV ,QWKHVDPHZD\WKDWKLVGLUHFWLRQVHHNVFRQQHFWLRQVEHWZHHQWKH GUDPD DQG UHDO OLIH 1LQDJDZD WHOOV KLV DFWRUV WR ILQG FRQQHFWLRQV EHWZHHQ WKH GUDPDWLF VLWXDWLRQ WKHLU UROHV DQG WKHLU VHOYHV ,Q KLV QRWHV KHDOZD\VJLYHVH[DPSOHVRIVLWXDWLRQVZKHUHKHKDVIHOWDQJHU UDJH UHVWUDLQW SOHDVXUH RU VRUURZ WRZDUGV WKLV RU WKDW SHUVRQ +H QHYHUSXWVKLPVHOILQDVDIHW\]RQH EXWH[SRVHVKLV¶VHOI · IUHHO\WRWKH DFWRUV DQG VXSSRUWLQJ VWDII GXULQJ D UHKHDUVDO 1LQDJDZD LV DOVR D PDVWHU RI KXPRURXV VLPLOHV DQG FRPSDULVRQV +H RQFH FRPSDUHG 6WHSKDQR ZKR WULHV WR SXW RQ QXPHURXV¶JOLVWHULQJ· JDUPHQWV WR D JOXWWRQZKRKHDSVKLVSODWHKLJKDWDEXIIHWSDUW\ 7RWKHDFWRUZKR SOD\HG &DOLEDQ KH VDLG ¶%H PRUH MHDORXV RI 7ULQFXOR )DZQ RQ 6WHSKDQR DQG VWD\ FORVH WR KLP OLNH D VWUHHW SXQN WR KLV ERVV· UHKHDUVDO 0D\ +RZHYHU 1LQDJDZDNQRZVWKDWKLVLQYHQWLYHQHVVDQGLPDJLQDWLRQ DUHPRVWFOHDUO\VKRZQWKURXJKVSHFWDFOH :KHQGLUHFWLQJ3URVSHUR·V ORQJ VROLORTX\ LQ $FW VFHQH RI 7KH 7HPSHVW ¶
/((%5(8(5
WKLVDVKLVJRDOKHKDVGLUHFWHG RWKHUWKDQ6KDNHVSHDUH 2HGLSXV5H[ 0HGHD (OHFWUD -RKQ%DUWRQ·VDGDSWDWLRQ RI WHQ *UHHN WUDJHGLHV NQRZQ DV 7KH *UHHNV 7KH 6HDJXOO 7KUHH 6LVWHUV DQG 7KH &KHUU\ 2UFKDUG +H LV EDVLFDOO\ D YLVXDO DUWLVW LQ WKH WKHDWUH KH RQFH DVSLUHG WR EHFRPLQJDSDLQWHU DQGKLVJUHDWHVWDFKLHYHPHQWOLHVLQKRZKHKDV RSHQHGXSJUHDWSRVVLELOLWLHVRILQWHUSUHWLQJWKHYHUEDOLQQRQYHUEDO GLPHQVLRQV HVSHFLDOO\ LQ KLV GLUHFWLRQ RI 6KDNHVSHDUH +H FUHDWHV GLIIHUHQW YHUVLRQV RI SOD\V QRW OHDVW 6KDNHVSHDUH·V EHFDXVH KH ILQGV WKDW HYHU\WLPH KHIDLOVWRVHL]HWKHZKROH +HQFH IRUH[DPSOH KLV ILYH GLIIHUHQW YHUVLRQV RI +DPOHW WKUHH RI .LQJ /HDU DQG WZR RI 0DFEHWK )XUWKHUUHDGLQJ $NLKLNR 6HQGD ¶6FHQH,,, ² 7KH3HULRGRI0HWDWKHDWUH· LQ 7KH 9R\DJH RI &RQWHPSRUDU\ -DSDQHVH 7KHDWUH WUDQV - 7KRPDV 5LPHU +RQROXOX 8QLYHUVLW\RI+DZDLL3UHVV ² ³³ ¶7KH5HELUWKRI6KDNHVSHDUHLQ-DSDQ )URPWKH VWRWKH V· WUDQV 0LQDPL 5\XWD LQ 7DNDVKL 6DVD\DPD 0XOU\QH -5 DQG 6KHZULQJ 0DUJDUHW HGV 6KDNHVSHDUHDQGWKH-DSDQHVH6WDJH &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV ² 1LQDJDZD <XNLR ,QWHUYLHZ ZLWK 0LFKDHO %LOOLQJWRQ /RQGRQ 0DUFK WUDQV <XULNR$NLVKLPD LQ'HOJDGR 0DULD0 DQG+HULWDJH 3DXO HGV ,Q&RQWDFW:LWKWKH*RGV"'LUHFWRUV7DON7KHDWUH 0DQFKHVWHU DQG1HZ
/((%5(8(5 ² %UHXHUKDVFUHDWHGDWKHDWUHZKLFKFRQVFLRXVO\DEVRUEVWKHVWUDWHJLHV DQGFRQYHQWLRQVRIWKHPDVVPHGLDDQGSRSXODUHQWHUWDLQPHQW ,W LV RIWHQ GHQVH HOOLSWLFDO O\ULFDO UDWKHU WKDQ FRQYHQWLRQDOO\ GUDPDWLF DQG LQWKHFDVHRIKLVDGDSWDWLRQVRIHVWDEOLVKHGFODVVLFV FRQWURYHUVLDO LQ LWV SHUIRUPDQFH FKRLFHV +LV FRQVLVWHQW DPELWLRQ KDV EHHQ WR
/((%5(8(5
FRQQHFW$PHULFDQWKHDWUHWRWKHYLWDOLW\RILWVFRQWHPSRUDU\FXOWXUH DQGWR¶ZDLWIRUSRHWU\· FRPSRVHGRXWRIWKHGULYLQJHQHUJ\RI WKH YHUQDFXODU ODQJXDJH SRSXODU PXVLFDO WUDGLWLRQ DQG UHIUDFWHG PHGLD LPDJHV %\ FXWWLQJ WKURXJK WKH ERXQGDULHV EHWZHHQ JHQUHV DQG ¶KLJK· DQG ¶ORZ· IRUPV WKDW WUDGLWLRQDOO\ VHSDUDWH WKH DUWV %UHXHU SDUWLFLSDWHG LQ WKH $PHULFDQ H[SHULPHQWDO DUW UHDUHG LQ WKH VRFLDO IHUPHQW RI WKH V DQG PDWXUHG LQ WKH LQWURVSHFWLYH V 7KURXJK PRVW RI WKH V KH ZRUNHG ZLWK WKH WKHDWUH FROOHFWLYH 0DERX0LQHV IRXQGHGLQ 7KLVJURXSDLPHGIRUDQHZH[SHU LPHQWDO V\QWKHVLV ZKLFK ZRXOG VXIIXVH WKH LGHDO RI DUWLVWLF FROOHFWLYLW\ZLWKWKHLQQRYDWLRQVRIQHZSDLQWLQJ PXVLFDQGGDQFH DVZHOODVWKHPRUHWUDGLWLRQDOFRQFHUQVRI6WDQLVODYVNLDQ¶WUXWK· WKH WUDGLWLRQIURPZKLFK%UHXHUDQGPRVWRIWKHJURXSKDGVSUXQJ 0DERX0LQHVQHYHUYLHZHGLWVHOIDVWKHH[SUHVVLRQRIDVLQJXODU DUWLVWLFYLVLRQ (YHQWKRXJK%UHXHUGRPLQDWHGLWVEHJLQQLQJSHULRG ZLWKKLVVHULHVRI$QLPDWLRQV ZULWWHQDQGGLUHFWHGE\KLP EHFDXVH RILWVFROODERUDWLYHLGHDODQGWKHDUWLVWLFVWUHQJWKVRIWKHLQGLYLGXDOV FRPSULVLQJLW WKHJURXSZDVQHYHU%UHXHU·VWKHDWUHLQWKHZD\WKDW VD\ WKH2QWRORJLFDO+\VWHULF7KHDWHUZDV 5LFKDUG)RUHPDQ 6LQFH ZKHQ -R$QQH $NDODLWLV GLUHFWHG &DVFDQGR WKH GLUHFWRULDO EDWRQ KDV LQFUHDVLQJO\ EHHQ SDVVHG DURXQG ZLWK ² LQ DGGLWLRQ WR %UHXHU DQG $NDODLWLV ² 5XWK 0DOHF]HFK )UHG 1HXPDQQ DQG %LOO 5D\PRQGWDNLQJSULPDU\UHVSRQVLELOLW\IRUVKDSLQJGLIIHUHQW0DERX 0LQHVRIIHULQJV 7KLVVKDULQJRIGLUHFWRULDODXWKRULW\DOORZHG%UHXHU WR PRYH RXWVLGH 0DERX 0LQHV WR GLUHFW D VHULHV RI LQQRYDWLYH SURGXFWLRQV RI WKH FODVVLFV IRU VXFK LQVWLWXWLRQV DV WKH $PHULFDQ 5HSHUWRU\ 7KHDWHU RI &DPEULGJH 0DVVDFKXVHWWV /XOX WKH 1HZ
/((%5(8(5
¶IODWWHQHGF\OLQGHUILIW\PHWHUVURXQGDQGHLJKWHHQKLJK· LQWRZKLFK DUH FUDPPHG WZR KXQGUHG¶ORVW ERGLHV· HDFK VHDUFKLQJ UHVWOHVVO\ IRU LWV PDWH 'DYLG :DUULORZ ZDV PHVPHULVLQJ DV WKH QDUUDWRU KLV SHUIRUPDQFH PDWFKHG E\ WKH SLHFH·V EULOOLDQW VHW D FODXVWURSKRELF FXELFOHSDGGHGZLWKJUH\IRDPUXEEHU 7KHDXGLHQFHSHHUHGGRZQ DW :DUULORZ·V HPDFLDWHG SUHVHQFH DV KH VORZO\ XQYHLOHG D VPDOO VFXOSWXUDO UHSUHVHQWDWLRQ RI WKH F\OLQGHU KH GHVFULEHG FRPSOHWH ZLWK D JURXS RI PLQLDWXUH WR\ ERGLHV :LWK GHOLFDWH SUHFLVLRQ :DUULORZXVHGDSDLURIIRUFHSVWRSRVLWLRQWKHVHKRPXQFXOLLQ WKH JURRYHVRIWKHF\OLQGULFDOPRGHO (DFKPHPEHURIWKHDXGLHQFHZDV JLYHQDSDLURIELQRFXODUVZLWKZKLFKWRREVHUYHWKHSURFHHGLQJVLQ YR\HXULVWLF FORVHXS 7KLV PROHFXODU SXUJDWRU\ ZDV HYRNHG E\ HQVHPEOHPHPEHU3KLOLS*ODVV· WDSHUHFRUGHGPXVLF ZKLFKVHHPHG ¶WR EH SOD\HG E\ HOHFWURQV UDWKHU WKDQ LQVWUXPHQWV·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² MRXUQH\V EXUGHQV VSHHG JUDFH 7KH EHDYHU FUHDWHV GHIHQVHV ² D FRQVWUXFWLQJ PDPPDO ¶D GDPQLQJ GDPPHG XS DQG GDPQHG VSHFLHV· 7KH GRJ 7KH 6KDJJ\ 'RJ $QLPDWLRQ LV WUDSSHGLQULWXDOVRIGHYRWLRQDQGVHUYLWXGH²DILJXUH DV%UHXHU·VWH[W QRWHV ¶SHUFHLYHGRQO\LQWKHPLUURURIDPDVWHU·VH\H· %UHXHU %UHXHU WKH SRHW UHFRJQLVHG WKDW ODQJXDJH KRZHYHU IUDJPHQWHG DQG HOOLSWLFDO ZDV QRW HQRXJK +H OHDUQHG IURP HQVHPEOH WKHDWUH WKDW WKH JURXS·V FROOHFWLYH FRQVFLRXVQHVV PXVW HQKDQFH WKH OLWHUDU\
/((%5(8(5
WH[W DQGIURPDUWDQGILOPWKDWYLVXDOLPDJHU\FDUULHVLWVRZQVLJQL ILFDWLRQ +H OHDUQHG IURP PXVLF WKH SRZHU RI SXUH QRQSURJUDPPDWLF VRXQG 7KH 5HG +RUVH $QLPDWLRQ KLV ILUVW SLHFH ZDV SDUWO\ EDVHG RQ 0X\EULGJH·V SKRWRJUDSKLF VHTXHQFHV RI WKH KRUVH LQ PRWLRQ 7KXV IURP WKH RXWVHW %UHXHU·V DHVWKHWLF ZDV LQGHEWHG WR ILOP·V YRFDEXODU\ RI VKRWV FXWV VHTXHQFHV IDGHV GLVVROYHV YRLFHRYHUV DQG RYHUGXEV +H DOVR DFFHSWHG WKHRULHV RI OLWHUDU\ GHFRQVWUXFWLRQ SDUWLFXODUO\ 5RODQG %DUWKHV· SUHPLVH WKDW ¶WKHZRUNRIWKHFRPPHQWDU\>UHDG¶SURGXFWLRQ· IRU%UHXHU@ RQFHLW LV VHSDUDWHG IURP DQ\ LGHRORJ\ RI WRWDOLW\ FRQVLVWV SUHFLVHO\ LQ PDQKDQGOLQJWKHWH[W LQWHUUXSWLQJLW· %UHXHUPDQKDQGOHVKLVRZQ $QLPDWLRQV WH[WV IRU WKH VDPH UHDVRQV WKDW GHFRQVWUXFWLYH FULWLFV ¶PLVUHDG· OLWHUDU\WH[WV WRUHFXSHUDWHWKHLUPDQ\YRLFHVWKURXJKWKH LQWHUYHQWLRQ RI SHUIRUPDQFH %UHXHU WKH GLUHFWRU LV QRW PHUHO\ WKH LQWHUSUHWHURI%UHXHUWKHSRHW EXWLVKLVQHFHVVDU\DFFRPSOLFH $ JRRG H[DPSOH RI WKLV LV +DMM %UHXHU·V ¶SHUIRUPDQFH SRHP· LQVSLUHGE\WKHGHHSO\SHUVRQDOKLVWRU\RI5XWK0DOHF]HFK WKH SLHFH·V VROH OLYH SHUIRUPHU 7KH ZRUN KDV DW LWV FRUH WKH LQGHOLEOH LPDJH RI D SDUHQW·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·V WKHDWUH IRFXVHG RQ KLV RZQ WH[WV RU WKRVH RI %HFNHWW LWFRXOGEHSLJHRQKROHGDQGGLVPLVVHGE\WKRVHXQUHFHSWLYH WR H[SHULPHQWDWLRQ :KHQ KH PRYHG RXWVLGH 0DERX 0LQHV WR DFFHSW FRPPLVVLRQV IRU QHZ SURGXFWLRQV RI HVWDEOLVKHG FODVVLFV WKH UHVXOWV ZHUH LQHYLWDEO\ FRQWURYHUVLDO EHFDXVH %UHXHU·V DHVWKHWLF UHPDLQHGFRPPLWWHGWRWKHYDOXHVDQGVWUDWHJLHVRIKLV0DERX0LQHV ZRUN QDPHO\ LI DOO WH[WV DUH GLVWRUWHG E\ FRQIOLFWLQJ VLJQDOV SHUIRU PDQFH UHLQWHUSUHWDWLRQ LV DEVROXWHO\ QHFHVVDU\ WR UHFXSHUDWH WKHP )RU%UHXHUWKLVPHDQWWKDWDQHZGLDOHFWLFKDGWREHIRUJHGEHWZHHQ
/((%5(8(5
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¶RZHV7KH7HPSHVW DQRWKHU VKRW· XQSXEOLVKHGLQWHUYLHZZLWKDXWKRU 7KH SLHFH FRQILUPHG %UHXHU·V EHOLHI ² D FRQVWDQW RI KLV ZRUN ² WKDW ¶KLJK· DQG ¶ORZ· DQG ¶VHULRXVQHVV· DQG ¶HQWHUWDLQPHQW· DUH QRW DHVWKHWLF DQWLWKHVHV DQG WKDW SRSXODU IRUPV SURMHFW D YLWDOLW\ UDUHO\ GXSOLFDWHG E\ KLJK DUW %UHXHU·V IDVFLQDWLRQ ZLWK WKH SRZHU RI SRSXODU DUW SDUWLFXODUO\ ZLWK LWV PXVLFDO H[SUHVVLRQ KDV JURZQ WKURXJK WKH \HDUV +H ZURWH D GRR ZRS SRHP DERXW WKH 5HG (\H 6SHFLDO EHWZHHQ /RV $QJHOHV DQG 1HZ
5,&+$5')25(0$1
LWV VSHFLHV 7KLV PRFNHSLF IDEOH DERXW WKH VWUXJJOH DJDLQVW WKH DQWKLOORIFRQIRUPLW\LVVWDJHGPXOWLFXOWXUDOO\ %UHXHUXVLQJDYDULHW\ RI :HVWHUQ $VLDQ DQG $IULFDQ PXVLFDO DQG WKHDWULFDO IRUPV 7KH ZDUULRUDQW ZDV SOD\HG E\ WKH %XQUDNX SXSSHW RI DQ HLJKWHHQWK FHQWXU\ 6DPXUDL $V LQ 7KH 7HPSHVW WKH HFOHFWLFLVP SURYHG FRXQWHUSURGXFWLYH WKH VXEWOH DUWLVWU\ RI WKH %XQUDNX PDVWHUV RYHU ZKHOPHG E\ WKH WKUHHULQJ FLUFXV DPELHQFH 1RQH WKH OHVV LW GHPRQVWUDWHG %UHXHU·V DXGDFLRXV ZLOOLQJQHVV WR HPEUDFH¶KLJK· DQG ¶ORZ· DQG¶QDWLYH· DQG¶H[RWLF· DUWLVWLFH[SUHVVLRQV ,QKLVPRUHUHFHQW 3HWHUDQG:HQG\ WKHUHLVRQO\RQHSHUIRUPHUZKRJLYHVYRLFH WR DQ DUUD\ RI LQYHQWLYH SXSSHWV %UHXHU LV IHDUOHVV LQ KLV VHDUFK IRU UHFXSHUDWLYH VWUDWHJLHV IRU D WKHDWUH ZLWKRXW ULVN FDQQRW UHGLVFRYHU WKHP\VWHULHV$PHULFDQFXOWXUHQRORQJHUXQGHUVWDQGV 1RWHV
%UHXHU /HH ¶6WDJLQJ3RHWU\· 9LOODJH9RLFH 0D\ 0XQN (ULND ¶$UWRI'DPQDWLRQ· 9LOODJH9RLFH $SULO %DUWKHV 5RODQG 6= 1HZ
)XUWKHUUHDGLQJ %UHXHU /HH $QLPDWLRQV $ 7ULORJ\ IRU 0DERX 0LQHV 1HZ
5,&+$5')25(0$1 ² %RUQ LQ 1HZ
5,&+$5')25(0$1
UHVSRQVH WR SROLWLFDO LPSHUDWLYHV )RUHJRLQJ JHQXLQH FRPPHUFLDO SURVSHFWV WKH DVSLULQJ \RXQJ SOD\ZULJKW IHOW KLPVHOI FRQVXPHG E\ WKLV H[SHULPHQWDO HQHUJ\ DQG UHDG\ WR DGG KLV RZQ FRQWULEXWLRQ )RUHPDQ·V URRWV LQ WKH GRZQWRZQ DUWV FRPPXQLW\ GLUHFWHG KLV DUWLVWLF GHFLVLRQV LQ VWDUWLQJ KLV WKHDWUH KH GLG QRW VHDUFK RXW D FRQYHQWLRQDOSOD\KRXVHEXWERUURZHGWKHJURXQGIORRUORIWRI-RQDV 0HNDV· &LQHPDWHTXHRQ:RRVWHU6WUHHWLQWKHQHLJKERXUKRRGMXVW WKHQEHFRPLQJNQRZQDV6R+R +HGLGQRWVHHNRXWFRQYHQWLRQDO DFWRUV KLV SHUIRUPHUV ZHUH PRVWO\ DYDQWJDUGH ZULWHUV ILOPPDNHUV SDLQWHUV RU WKHLU IULHQGV ,Q WKLV VXSSRUWLYH FRQWH[W )RUHPDQ·V WKHDWUH PDGH LWV GHEXW ZLWK $QJHOIDFH $OWKRXJK WKH SOD\ VHHPHG WR GUDPDWLVH RUGLQDU\ GRPHVWLF VLWXDWLRQV LWV GLDORJXH VWULSSHG RI QRUPDO VRFLDO LQWHUDFWLRQ PDGH QR FRQYHQWLRQDO VHQVH (YHQ WKH FRJQRVFHQWL LQ WKH DXGLHQFH ZHUH EHZLOGHUHG $V )RUHPDQ FRQFHGHG ¶)RU WKH ILUVW VL[ \HDUV ZH NQHZ WKDW KDOI RXU DXGLHQFH ZRXOG ZDON RXW EHIRUH WKH HQG RI WKH SOD\ RIWHQ ZLWKLQ WKH ILUVW WZHQW\PLQXWHV·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·VWKHDWUHGRHVQRWPHUHO\DUWLFXODWH KLVWKHRUHWLFDOLGHDV +LVWKHDWUHKDVVXVWDLQHGLWVHOIWKURXJKWKH\HDUV EHFDXVH DW LWV EHVW LW LV IXQ ² VSLULWHG IUHQHWLF GD]]OLQJ VXUSULVLQJ SURYRFDWLYH HYHQ DV LW LV LQWHOOHFWXDOO\ GHPDQGLQJ )RUHPDQ LV QRW MXVW DQ REVHVVLYH VHOIVFUXWLQLVHU D SKLORVRSKLFDO SUREHU RI UHFDOFL WUDQW UHDOLW\ +H LV DOVR D ULQJPDVWHU PHOGLQJ WH[W SHUIRUPDQFH PXVLF VRXQGDQGREMHFWVLQWRXQLTXHVSHFWDFOHV 7KH GXDO QDWXUH RI )RUHPDQ·V ZRUN LV UHIOHFWHG LQ WKH QDPH KH JDYHWRKLVJURXS WKH2QWRORJLFDO+\VWHULF7KHDWHU 7KH¶RQWRORJ LFDO· QDWXUH RI )RUHPDQ·V WKHDWUH UHVLGHV LQ WKH IHUYHQW LI
5,&+$5')25(0$1
XQDFKLHYDEOHTXHVWIRUXOWLPDWHPHDQLQJ +HQFHWKHILHUFHFRQFHQ WUDWLRQ RQ WKH UHDOLW\ RI HDFK LQGLYLGXDO PRPHQW ZKLFK )RUHPDQ RIWHQ UHSOD\V LQ RUGHU WR UHVFUXWLQLVH 7KH¶K\VWHULF· QDWXUH RI WKH ZRUN OLHV LQ WKH PDQQHU LQ ZKLFK LW HYRNHV SK\VLFDO YXOQHUDELOLW\ WHUURU DQG VH[XDOLW\ DQ LUUDWLRQDO FRXQWHUEDODQFH WR WKH LPSODFDEOH UDWLRQDOLW\ RI )RUHPDQ·V PHQWDO SURFHVVHV 7KH MX[WDSRVLWLRQ RI RQWRORJ\DQGK\VWHULDUHIOHFWVWKHUHODWLRQVKLSEHWZHHQ)RUHPDQWKH SOD\ZULJKWDQG)RUHPDQWKHGLUHFWRU 3KLORVRSK\LV²RUVKRXOGEH² DUDWLRQDOTXHVW DQG)RUHPDQ·VSOD\VGHQ\HPSDWK\EHFDXVHKHGRHV QRWZDQWWRSROOXWHUHDVRQ 2QWKHRWKHUKDQG WKHDWUHLVQRWKLQJLI QRW FRUSRUHDO DQG LQ WKH VWDWH RI K\VWHULD WKH FODLPV RI WKH ERG\ VZDPSWKRVHRIWKHPLQG 7KDWLVZK\)RUHPDQFKRVHWKHWKHDWUHDV KLVPDLQPHGLXPDQGQRWILFWLRQ SRHWU\RUGLVFXUVLYHSURVH 7KHDWUH LVKHUH QRZDQGSDOSDEOH ,Q WKH HDUOLHVW SOD\V )RUHPDQ WKH GLUHFWRU FRQVFLRXVO\ VHUYHG )RUHPDQ WKH SOD\ZULJKW ¶7KH VHWV ZHUH H[WUHPHO\ PLQLPDO « , EXLOWHYHU\WKLQJ %XW,DGGHGQRGHFRUDWLRQ ,ZDQWHG«WKHORRNRI P\ DZNZDUG FDUSHQWU\· LELG %\ WKH WLPH RI +RWHO &KLQD ² )RUHPDQ·VLQWHUHVWEHJDQWRVKLIWDZD\IURPKLVVFUXWLQ\ RIWKHSV\FKRORJLFDOVXEWH[WVWKDWXQGHUOLHWKHVXUIDFHRIFRQVFLRXV DFWLRQ +HLQFUHDVLQJO\IHOWWKDWDPLQLPDOO\GUHVVHGVSDFHZRXOGQRW DOORZWKHWH[WWRULFRFKHWIXOO\EHWZHHQOHYHOVRIPHDQLQJ )RUHPDQ WKHGLUHFWRUGHVLJQHUDVVXPHGDJUHDWHUUROHLQKLVVHOIFROODERUDWLRQ +HVDZWKHVWDJHQRWDVDSODWIRUPRQZKLFKWRGLVSOD\DFWLRQ EXWDV ¶DUHYHUEHUDWLRQFKDPEHUZKLFKDPSOLILHVDQGSURMHFWVWKHPXVLFRI WKHDFWLRQVRLWFDQUHYHDOWKHIXOOUDQJHRILWVRYHUWRQHV· LELG $OO WKH PDWHULDOV RI WKHDWUH ² VFHQHU\ SURSV OLJKWV QRLVHV ERGLHV ² ZHUHWREHWKURZQWRJHWKHULQSRO\PRUSKRXVSOD\ 7DNH IRU H[DPSOH WKH RSHQLQJ RI +RWHO &KLQD WKHUH ZHUH WZR QDNHGEXOEVRQIORRUVWDQGVDQGDPDQVLWWLQJEHKLQGHDFKEXOE 2QH KDG D VDFN RYHU KLV KHDG $ ODPS ZDV SODFHG RYHU WKH VDFN DQG D ZUDSSHG SDFNDJH ZDV SODFHG XSRQ WKH RWKHU PDQ·V ODS %ODFNRXW :KHQ WKH OLJKWV FDPH XS DJDLQ D URFN KDG UHSODFHG WKH SDFNDJH 7KH XQKRRGHG PDQ VDLG ¶*HW WKLV URFN RII · 7KH KRRGHG RQH UHSOLHG¶,GLGQ·WQRWLFHLW· $VWKHVFHQHFRQWLQXHG WKHUHZDVDQRWKHU EODFNRXW DFFRPSDQLHG E\ WKH VRXQG RI D URFN EHLQJ KLW E\ D KDPPHU :KHQ WKH OLJKWV FDPH EDFN XS WKH PHQ KDG JRQH DQG D JHQWO\ VZLQJLQJ URFN ZDV VXVSHQGHG LQ WKH DLU LOOXPLQDWHG E\ D IODVKOLJKW 7KH PHQ UHWXUQHG 6LJQV ZHUH SODFHG RQ WKH UHDU ZDOO RQHRIZKLFKUHDG ($&+52&.,6&$3$%/(2)9,%5$7,1* ,1'(3(1'(17/< $ VFUHHQ GHVFHQGHG $ ILOP ZDV VKRZQ ,W FRQVLVWHG RI VKRWV RI URFNV EHLQJ SODFHG LQ GLIIHUHQW SRVLWLRQV LQ
5,&+$5')25(0$1
GLIIHUHQW URRPV 7KH ILOP ZHQW WR ZKLWH :LWK WKH SURMHFWRU VWLOO UXQQLQJ DVL[IRRWURFNZDVUROOHGRQWRWKHVWDJH %LUGVFKLUSHGWLOO WKH URFN FDPH WR UHVW $ VLQJOH EULJKW IORRGOLJKW LOOXPLQDWHG WKH VWDJH 7KHELUGVRQJIDGHG 7KHFUHZSODFHGVPDOOURFNVDURXQGWKH ELJURFN 7KHUHZDVWKHQRLVHRIDKDPPHUVWULNLQJDURFN 7KLVZDV UHSHDWHGWHQWLPHV 7KHQWKHUHZDVVLOHQFH 2QH YLVXDO HOHPHQW ZKLFK PDGH LWV ILUVW DSSHDUDQFH LQ +RWHO &KLQD DQG FDPH E\ VXEVHTXHQW UHSHWLWLRQ WR EH V\QRQ\PRXV ZLWK )RUHPDQ·V WKHDWULFDO VW\OH ZDV WKH XVH RI VWULQJV ,Q RQH VFHQH )RUHPDQ DWWDFKHG VWULQJV WR WKH VLGHV RI WKH VWDJH LQ D ZLGHQLQJ IXQQHOWKDWFDPHWRDSRLQWRQDQDFWRU·VEURZ 7KHVWULQJVVXJJHVWHG OLQHV RI IRUFH HPDQDWLQJ IURP WKH FKDUDFWHU·V ² DQG WKH DXWKRU·V ² \HDUQLQJPLQG ,QWKHODWHUSOD\V WKHVHXELTXLWRXVVWULQJV LQWHQVLILHG E\ UHSHWLWLYH EODFN GRWV GHYHORSHG D OLIH RI WKHLU RZQ )HHOLQJ WKDW WKHDWULFDO VSDFH ZDV LQVXIILFLHQWO\ GHILQHG )RUHPDQ ZDQWHG WKH VWULQJV WRJHWKHU ZLWK OLJKWV WKDW ZHUH IRFXVHG LQWR WKH DXGLHQFH·V H\HV WR WXUQ WKH VWDJH LQWR D SDUWLFLSDQWSURYRFDWHXU LQ WKH SOD\ UDWKHUWKDQKDYHLWUHPDLQDQHXWUDOVLWHRISHUIRUPDQFH 7KHVWDJLQJRI)RUHPDQ·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²IRRW UDNH 6OLGLQJ ZDOOV ZRXOG HQWHU IURP WKH VLGH RI WKH VWDJH WR FUHDWH D VHULHV RI TXLFNO\ FKDQJLQJ DUHDV WKDW YDU LHG UDGLFDOO\ LQ GHSWK 7KH VWDJH IORRU EXLOW IURP VFUDWFK FKDQJHG IRU HDFKSURGXFWLRQ ,WFRXOGVORSHXSDQGGRZQOLNHDVHULHVRIKLOOV RU D ZDOO FRXOG PRYH LQ DQG LVRODWH D VKDOORZ DUHD 7KURXJKRXW HDFK VKRZ WKH SHUIRUPDQFH VSDFH ZRXOG DOWHUQDWHO\ FORVH DQG RSHQ XS VKLIWLQJEDFNDQGIRUWKYHUWLJLQRXVO\ WKHSHUIHFWVLWHIRUDWKHDWUHRI GLVHTXLOLEULXP $V )RUHPDQ·V UHSXWDWLRQ VSUHDG EH\RQG WKH GRZQWRZQ DUWV FRPPXQLW\ QHZ WKHDWULFDO RSSRUWXQLWLHV SUHVHQWHG WKHPVHOYHV ,QVWLWXWLRQDOWKHDWUHVFDPHFDOOLQJZLWKLQFUHDVLQJIUHTXHQF\ SDUWLF XODUO\DVKLVVWDWXVJUHZLQ(XURSH ,Q KHUHFHLYHGDQRIIHUWR VWDJHDUHYLYDORI%UHFKW·V7KUHHSHQQ\2SHUD DWWKH9LYLDQ%HDXPRQW 7KHDWHULQWKH/LQFROQ&HQWHU )RUHPDQKDGQHYHUVWDJHGWKHZRUN RI DQ\ SOD\ZULJKW RWKHU WKDQ KLPVHOI EXW KLV DIILQLW\ ZLWK %UHFKW
5,&+$5')25(0$1
ZDVGHHS ,QKLVSURGXFWLRQKHZRUNHGWRUHFRYHUWKHVDYDJHU\WKDW 0DUF %OLW]VWHLQ·V SRSXODU 2II%URDGZD\ VXFFHVV KDG VDFULILFHG 7KUHHSHQQ\2SHUD ZDVWKHILUVWRIHLJKW)RUHPDQSURGXFWLRQVXQGHU -RVHSK 3DSS·V DXVSLFHV RYHU WKH QH[W GR]HQ \HDUV WKUHH RI ZKLFK 3HQJXLQ 7RXTXHW (J\SWRORJ\ DQG :KDW 'LG +H 6HH" ZHUHZULWWHQE\)RUHPDQLQWKH2QWRORJLFDO+\VWHULFWUDGL WLRQ )RUHPDQ FORVHG KLV WKHDWUH RQ ORZHU %URDGZD\ LQ 7KH :RRVWHU *URXS RIIHUHG WKH 2+ 7KHDWHU LWV KRPH VSDFH WKH 3HUIRUPLQJ *DUDJH )URP WR )RUHPDQ SUHVHQWHG IRXU SOD\VDWWKH*DUDJH WZRZLWKWKH:RRVWHU*URXSHQVHPEOH² 0LVV 8QLYHUVDO +DSSLQHVV DQG 6\PSKRQ\ RI 5DWV ² DQG WZR ZLWKRXW²7KH&XUH DQG/DYD )RUHPDQDFNQRZOHGJHV WKDW WKH YLVFHUDO DFWLQJ VW\OH RI WKH :RRVWHU *URXS ² VR GLIIHUHQW IURP WKH LURQLF GHDGSDQ KH XVXDOO\ FRD[HG IURP KLV SHUIRUPHUV ² FOHDUO\PRYHGWKHLUFROODERUDWLRQVLQK\SHUNLQHWLFGLUHFWLRQV >7KH@DFWRUVIURPWKH:RRVWHU*URXS«GLGQ·WKHVLWDWHWR H[SDQGRQP\VXJJHVWLRQVWRJHWORXGHUDQGIDVWHU«7KH\ WKUHZ WKHPVHOYHV LQWR LW ZLWK D YHQJHDQFH WKDW PRYHG WKH SHUIRUPDQFH IDVWHU DQG IDVWHU DQG , LQGXOJHG P\VHOI E\ DVNLQJIRUPRUHYLROHQWSK\VLFDODFWLYLW\WKDQ,HYHUKDGLQ WKHSDVW ,ELG ,Q )RUHPDQ WRRN RYHU WKH KLVWRULF XSVWDLUV WKHDWUH DW 6W 0DUN·V&KXUFKRQ6HFRQG$YHQXHLQ1HZ
3(7(567(,1
GRRPHGIHVWLYLWLHV EDOORRQVDQGVWUHDPHUVDJDLQIHVWRRQHGWKHVSDFH DQG ZKLWH IORZHUV FDVFDGHG QHDU WKH FHLOLQJ &KDUDFWHUV DQG QDUUD WLYHV UHPDLQHG W\SLFDOO\ HOXVLYH EXW WKHPHV ZHUH SHUKDSV PRUH DFFHVVLEOH WKDQ EHIRUH :LWK DJH )RUHPDQ KDG WXUQHG WRZDUGV WKHPHVRIGHDWKDQGVHOIDVVHVVPHQW 5LFKDUG )RUHPDQ ZLOO SHUVHYHUH /LNH %HFNHWW·V 8QQDPDEOH KH FDQ·W JR RQ EXW KH ZLOO JR RQ $V KH FRQIHVVHG LQ 3HUPDQHQW %UDLQ 'DPDJH ¶DQDQJU\PDQ GLVLOOXVLRQHGDQGZHDU\RIOLIH QHYHU WKHOHVVVXVWDLQVWKHEOLQGIDLWKWKDWVRPHWKLQJDPD]LQJDQGEHDXWLIXO ZLOOHPHUJHIURPWKHFKDRVVXUURXQGLQJKLP· ,QKLVPRVWDFFHVVLEOH ERRN 8QEDODQFLQJ $FWV )RUHPDQ QRWHV WKDW ¶HVVHQWLDOO\ DQ DUWLVW GRHV RQH WKLQJ WKURXJKRXW KLV FDUHHU· LELG ,QGHHG )RUHPDQ KDV FRQWLQXDOO\ UHF\FOHG YLVXDO LPDJHV YDULHJDWHG VWULQJV FROODJLVW GHWDLO OLQHV RI IRUFH HWF WLWOHV 0\ +HDG :DV D 6OHGJHKDPPHU ,·YH*RWWKH6KDNHV LQWHOOHFWXDOFRQFHUQVDQGGLUHFWR ULDO VWUDWHJLHV SUHVHQWDWLRQDO QRQDFWLQJ DFWLQJ FRQVWDQW LQWHUUXSWLRQ %UHFKWLDQ GLVWDQFLQJ WKURXJK EOLQGLQJ OLJKWV EX]]HUV DQGPXVLFDOIUDJPHQWDWLRQ +LVYLVLRQUHPDLQVVWHDGIDVWDQGDGYHU VDULDO )RUHPDQ PDLQWDLQV WKDW ZKHQ FRQVHUYDWLYH FULWLFV DWWDFN FRQWHPSRUDU\DUWEHFDXVHWKH\IHDUWKDWLWZLOOXQGHUPLQH:HVWHUQ FXOWXUH WKH\KDYHDYDOLGIHDU 1RWQRZ EXW¶LQWKHORQJUXQ· 8QWLO WKHQ )RUHPDQ ZLOO NHHS JRLQJ ² WKLUW\ \HDUV DQG FRXQWLQJ ² E\ FRQWLQXLQJWRFUHDWHVHULRXVDUWLQDFXOWXUHKHSHUFHLYHVKRVWLOHWR VHULRXVDUW )XUWKHUUHDGLQJ )RUHPDQ 5 5LFKDUG )RUHPDQ 3OD\V DQG 0DQLIHVWRV HG .DWH 'DY\ 1HZ
3(7(567(,1 ² 7KH *HUPDQ GLUHFWRU 3HWHU 6WHLQ·V SODFH LQ KLVWRU\ LV DQDORJRXV WR WKDW RI DQ DGROHVFHQW·V ZLWKLQ D IDPLO\ ² DW RQFH UHEHOOLRXV DQG
3(7(567(,1
DFFRPPRGDWLQJ ILJKWLQJ RII PHQWRUV DQG EHLQJ VKDSHG E\ WKHP 6WHLQ·V 7DVVR ZDVTXLWHFOHDUO\WKHDWWHPSWRID\RXQJ*HUPDQ GLUHFWRUZRUNLQJLQZKDWZDVLQHYLWDEO\%UHFKW·VVKDGRZWRWHVWWKH OHJDF\ RI WKH PDVWHU DJDLQVW WKH JURZLQJ DXWKRULW\ RI KLV RZQ DUWLVWLF VHQVLELOLW\ 6WHLQ·V UHDUUDQJHPHQW RI VFHQHV LQ 7DVVR RZHV D JUHDWGHDOWR%UHFKW HSLVRGHVDUHJURXSHGWRJHWKHUZLWKRXWDQRYHUW VHQVHRIVHTXHQFH $V0LFKDHO3DWWHUVRQREVHUYHV ¶%\XQGHUPLQLQJ WKHDEVROXWHQHVVRIWKHSOD\·VGUDPDWLFVWUXFWXUH 6WHLQFKDOOHQJHGWKH DEVROXWHQHVVRIWKHVRFLDOVWUXFWXUHLWUHIOHFWHG· 3DWWHUVRQ WKHUH FRXOG RI FRXUVH EH QR FOHDUHU GHILQLWLRQ RI WKH ¶HSLF· LQ %UHFKWLDQ WKHDWUH 3DWWHUVRQ DOVR QRWHV WKDW WKH DFWRU¶%UXQR *DQ] GLGQRWLGHQWLI\ZLWK7DVVREXW¶¶TXRWHG·· KLP· LELG ²DUHIHU HQFH WR DQ DFWLQJ WHFKQLTXH XVHG E\ %UHFKW WR LQWURGXFH D GLVWLQFWLRQEHWZHHQWKHDFWRUDQGWKHUROH 3DWWHUVRQQRWHVWKH¶EODV SKHPRXV VKRFNHIIHFW· LELG DFKLHYHG E\ (GLWK &OHYHU·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·VFRQYLFWLRQWKDWDFWRUV ZHUH PRUH OLNHO\ WR JLYH EHWWHU SHUIRUPDQFHV LI WKH\ KDG D VD\ LQ ZKDW WKH FRPSDQ\ DV D ZKROH ZDV WU\LQJ WR DFKLHYH 6WHLQ FKRVH %UHFKW·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·V IOHGJOLQJGHPRFUDF\ SRVWSHUIRUPDQFHGLVFXVVLRQVZHUHLQVWLWXWHGVR DV WR HQFRXUDJH WKH DXGLHQFH WR FRQWULEXWH WR WKH SURFHVV RI
3(7(567(,1
FUHDWLQJ SHUIRUPDQFHV $V 6WHLQ UHPDUNHG LQ DQ LQWHUYLHZ ZLWK %HUQDUG 'RUW ¶ZKDW ZH LQWHQG WR H[SORUH « LV D IRUP RI WKHDWUH ZKHUH WKH DXGLHQFH DUH XOWLPDWHO\ WKH RQHV ZKR FUHDWH WKH WKHDWUH« >:@KDW LV VKRZQ ZLOO GLUHFWO\ FRQFHUQ WKH DXGLHQFH DQG LQYROYHWKHPLQGHEDWH LQGHHGPDNHWKHPTXHVWLRQWKHLURZQZD\ RIGHEDWLQJ· ,WUDSLGO\EHFDPHDSSDUHQW KRZHYHU WKDW6WHLQ·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·V SROLF\ DOVRSURYHGPLVJXLGHG DIWHUFRQVLGHUDEOHZUDQJOLQJRYHUWKHIDWHRI DQHQJLQHHUZKRKDGEHHQGLVPLVVHG DPRUHVWDEOHHTXLOLEULXPZDV UHDFKHG ZKHUHE\ PHPEHUV RI WKH WHDP ZLWK WHPSRUDU\ FRQWUDFWV GLGQRWKDYHWKHULJKWWRYHWRFRPPLWWHHGHFLVLRQV 6WHLQ FDPH DZD\ IURP KLV H[SHULPHQW ZLWK GHPRFUDF\ ERWK EUXLVHG DQG LPSDWLHQW +LV IUXVWUDWLRQ HUXSWHG LQWR DQ RYHU]HDORXV SUHRFFXSDWLRQ ZLWK LWV LGHRORJLFDO RSSRVLWH ² WKH WKHDWUH RI ERXU JHRLV QRVWDOJLD 6WHLQ ZDV TXLWH FOHDU DERXW KLV UHDVRQV IRU DEDQGRQLQJKLVVKRUWOLYHGFDUHHUDVDVSRNHVPDQIRUWKHSUROHWDULDW WKH FRPSDQ\ ZRXOG KDYH WR DFFHSW KH DUJXHG WKDW ERWK LWV PHPEHUV DQG LWV DXGLHQFH ZDV HVVHQWLDOO\ PLGGOH FODVV DQG WKDW E\ SOD\LQJ WR D UHYROXWLRQDU\ EULHI WKH\ ZHUH EHLQJ ERWK FRQGH VFHQGLQJDQGK\SRFULWLFDO 7KHWKHDWUHFDQQRWEHDPHDQVRIUHDOLVLQJWKHLGHRORJ\RI WKHZRUNLQJFODVVHV 7KLVUHDOLVDWLRQFDQRQO\EHDFKLHYHGLQ SUDFWLFDO SROLWLFDO VWUXJJOH 7KH PHDQV DUH WKRVH RI WKH ZRUG RI ZULWLQJ RI SLFWXUHV HWF DQG QRW WKH LQWHUDFWLRQ ZKLFK WDNHV SODFH EHWZHHQ WZR RU WKUHH SHRSOH LQ DQ HQFORVHGVSDFHLQIURQWRIDPD[LPXPRISHRSOH :KHQ6WHLQYHKHPHQWO\GHFODUHG¶,UHIXVHWRSXWEDGSOD\VZKLFK GHDO ZLWK WKH VRFDOOHG SUREOHPV RI WKH ZRUNLQJ FODVVHV LQ RXU
3(7(567(,1
SURJUDPPHMXVWWRSURYHKRZOHIWLVKZHDUH·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·V3HHU*\QW 6WHLQDQQRXQFHGZLWKWKH]HDO RI WKH FRQYHUW ZRXOG DLP LQVWHDG¶WR GHYHORS DQ XQGHUVWDQGLQJ RI RXU RZQ ERXUJHRLV RULJLQV· ,Q IDFW WKHUH LV D JUHDWHU VLPLODULW\ EHWZHHQ WKH WHFKQLTXHV XVHG LQ 7KH 0RWKHU DQG 3HHU *\QW WKDQ 6WHLQ·V LGHRORJLFDO LQGLJQDWLRQ ZRXOG KDYH XV EHOLHYH 7KH VLQJOH WKUHDG UXQQLQJ WKURXJK HDFK RI WKH FKDQJHV 6WHLQ PDGH WR ,EVHQ·V WH[W ZDV D FRQFHUQ ZLWK H[SRVLQJ WKH VRFLDO VWUXFWXUHV XQGHUO\LQJ WKHGUDPDWLFDFWLRQ 7KXVWKH6WUDQJH3DVVHQJHU LQVWHDGRIDVNLQJ3HHUDERXWKLV H[SHULHQFH RI¶GUHDG· QRZ SRVHG TXHVWLRQV OLNH «¶+DYH \RXHYHUWULHGWRILQGRXWWKHIDFWVDERXWVRFLDOFRQGLWLRQV LQ1RUZD\"· 3DWWHUVRQ ,QWKHWUROOVFHQH3HHU·VOLQHVZHUHDGDSWHGWRUHDGQRW¶,·PZKDWHYHU \RXZDQW²D7XUN DVLQQHU DWUROO· EXW¶,·PZKDWHYHU\RXZDQW²D OLDU D FDSLWDOLVW D WUROO· LELG 7KH DFWRUV ZHUH LQFOXGHG LQ WKH GLVFXVVLRQDERXWDOWHUDWLRQVWRWKHWH[WDQG6WHLQDFFHSWHGPDMRULW\ GHFLVLRQVDERXWFDVWLQJ 7KH6FKDXEKQH·VFRPPLWPHQWWRHQVHPEOH DFWLQJ ZDV DFFRPPRGDWHG E\ GLYLGLQJ WKH UROH RI 3HHU LQWR D QXPEHURISDUWVWKDWZHUHSOD\HGE\VL[DFWRUV 7KHDFWRUV· LQVWUXF WLRQVZHUHH[SOLFLWO\%UHFKWLDQ WKH\KDGWR¶DFWWKHUROHDQG FULWLFL]H LW· $ QXPEHU RI FRPPHQWDWRUV KDYH OLQNHG WKH JUHDWHU HOHPHQW RI UHDOLVPWKDWHQWHUHGLQWR6WHLQ·VVWDJLQJLQWKH VDQG VZLWK KLVVXSSRVHGO\JURZLQJLQWHUHVWLQ¶ERXUJHRLVWKHDWUH· ,QIDFW6WHLQ·V XVH RI UHDOLW\ LV LQWHUHVWLQJ SUHFLVHO\ EHFDXVH LW GHVWUR\V LOOXVLRQ RQ VWDJH 7KHUDLQLQ3LJJ\%DQN IRUH[DPSOH ZDVVRUHDOWKDWLW GHVWUR\HGWKHJDPHRI¶OHW·VSUHWHQG· WKDWQDWXUDOLVWLFDFWRUVWUDGLWLRQ DOO\UHO\XSRQWRVXVWDLQVWDJHLOOXVLRQ 7KHWHFKQLTXHGDWHVEDFNWR RQH RI 6WHLQ·V HDUOLHVW SURGXFWLRQV (GZDUG %RQG·V 6DYHG LQ
3(7(567(,1
ZKLFK6WHLQSXWDUHDOERDWRQVWDJHEXWGHOLEHUDWHO\IDLOHGWRSDLQW LQWKHWUHHVDQGWKHZDWHUWKDWWKHERDWLQJVFHQHUHTXLUHG 7KH DFW RI LQVLQXDWLQJ DQ LQFRQJUXRXVO\ UHDO REMHFW LQWR WKH ILFWLWLRXV FRQWH[WRIDSLHFHRIWKHDWUHKDGWKHHIIHFWRIFKDOOHQJLQJWKHDXGL HQFH·VVHQVHRIWKHUHDO²ZKLFKZDV6WHLQ·VSUHFLVHLQWHQWLRQ 2QH RI WKH PRVW PHPRUDEOH DVSHFWV RI 6WHLQ·V EHVWNQRZQ SURGXFWLRQ *RUN\·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¶DOLHQDWLRQ· 5HSHDWHGO\ LQ 6XPPHUIRON WKH SDLQVWDNLQJO\ FUHDWHG VSRQWDQHLW\RIWKHFKDUDFWHUVZRXOGEHEURNHQZLWKDIUHH]H²DQG ODLGRYHUZLWKDFRPPHQWDU\RQWKHDFWLRQ 6WHLQZRXOGHQFRXUDJH KLVDFWRUV¶WRVHHNIRUGHWDLOIRUQRRWKHUUHDVRQWKDQWKDWLWZDVOLIH OLNH· LELG ² EXWKHZRXOGDOVRKDYHKLVDFWRUVSHULRGLFDOO\ VWDQG VWLOO DQG DGGUHVV WKH DXGLHQFH GLUHFWO\ WKHUHE\ GHVWUR\LQJ DQ\ ¶LOOXVLRQ· WKHLUOLIHOLNHDFWLQJPD\KDYHFUHDWHG 6WHLQEHJDQZRUNRQ6XPPHUIRON E\JLYLQJDOHFWXUHRQ*RUN\ +LV FRGLUHFWRU 6WXUP IROORZHG ZLWK D OHFWXUH RQ QLQHWHHQWK FHQWXU\5XVVLDQOLWHUDWXUH :RUNRQ$V
3(7(567(,1
ZRUN ZDV DQDORJRXV WR KLV UHMHFWLRQ RI VRFLDOLVW WKHDWUH LQ ERWK FDVHV DQ RXWPRGHG PHWKRG RI ZRUNLQJ ZDV SUHIHUUHG WR D PRUH UHFHQW DQG IDVKLRQDEOH DOWHUQDWLYH :KDW ZDV UHYROXWLRQDU\ DERXW 6WHLQZDVWKDWKHZDVUHDFWLRQDU\ $V
6WHLQ 3HWHU ,QWHUYLHZZLWK%HUQDUG'RUW 7UDYDLO7KHDWUDO 6WHLQ LQ D PHHWLQJ ZLWK DFWRUV DQG VWDII 1RYHPEHU 6FKDXEKQH3URWRFRO1R 6WHLQTXRWHGLQD6FKDXEKQH3URWRFRORI$SULO &DQDULV 9RONHU RQ6WHLQ·V3HHU*\QW LQ7KHDWUHKHXWH
-2$11($.$/$,7,6
)XUWKHUUHDGLQJ /DFNQHU 3 ¶3HWHU6WHLQ· 'UDPD5HYLHZ 7-XQH 3DWWHUVRQ 0 3HWHU6WHLQ &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV 6+20,70,77(5
-2$11($.$/$,7,6 ² -R$QQH$NDODLWLVLVRQHRI$PHULFD·VPRVWLQQRYDWLYHDQGFRQWURYHU VLDO VWDJH GLUHFWRUV ZKRVH ZRUN UDQJHV IURP RULJLQDO WKHDWUH SLHFHV WR XQFRQYHQWLRQDO LQWHUSUHWDWLRQV RI FODVVLF SOD\V 1RWHG IRU KHU LPDJLVWLFDQGVFXOSWXUDODSSURDFKWRVWDJLQJ $NDODLWLV·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¶WKHLQVLGHDQG WKHRXWVLGHFRPLQJWRJHWKHU· )RU WZHQW\ \HDUV $NDODLWLV ZDV D PHPEHU RI 0DERX 0LQHV WKH 1HZ
-2$11($.$/$,7,6
H[SORUHLPDJHV PRYHPHQWVDQGJHVWXUHVLQRQHRIWKHH[HUFLVHV RU ZKLOH ZRUNLQJ RQ D VFHQH $NDODLWLV FRQWLQXDOO\ UHPLQGV WKHP WKDW WKH\DUH¶LQLWWRJHWKHU· )RU $NDODLWLV WKH SULPDO HOHPHQW RI WKHDWUH LV ERGLHV PRYLQJ LQ VSDFHRQVWDJH 6KHVHHNVRXWDFWRUVZKRLQKDELWWKHLURZQERGLHVLQ DQ HDV\ DQG H[SUHVVLYH PDQQHU ZKR ¶SRVVHVV WKH KDELW RI EHLQJ HPRWLRQDO EXW ZKR DOVR OLNH WR ZRUN SK\VLFDOO\· $QG LQ KHU UHKHDUVDOV DODUJHSDUWRIWKHDFWRU·VZRUNLQYROYHVGHYHORSLQJDSK\V LFDOFRQQHFWLRQWRWKHWH[W WRIHOORZDFWRUVDQGWRWKHVFHQRJUDSKLF VSDFHLWVHOI $NDODLWLVEHOLHYHVWKDWDOOJUHDWSOD\VUHTXLUHWKHDFWRUWR EH¶SUHQDUUDWLYH· WREHDEOHWRH[LVWLQDNLQGRISULPHYDO VXEFRQ VFLRXV VWDWH WKDW LV RSHQ WR WKH ZRUOGV RI WKH SOD\ 7R WKLV HQG $NDODLWLVKDVGHYHORSHGDVHULHVRISK\VLFDOH[HUFLVHVZKLFKDUHFHQWUDO WRKHUGLUHFWLQJSURFHVV 7KHH[HUFLVHV SHUIRUPHGE\WKHHQWLUH FDVW RI DFWRUV WKURXJKRXW WKH UHKHDUVDO SHULRG DUH QRW DERXW FUHDWLQJ LPSURYLVDWLRQDO VLWXDWLRQV RU VFHQHV 7KHLU IRFXV LV WR HVWDEOLVK WKLV SUHQDUUDWLYH RSHQ DQG DOHUW VWDWH LQ D PDQQHU WKDW DYRLGV GHILQLQJ WKH DFWXDO SK\VLFDOLW\ RI WKH DFWRUV· FKDUDFWHUV WRR HDUO\ RQ LQ WKH UHKHDUVDOSURFHVV 2QFHHVWDEOLVKHG WKLVIRXQGDWLRQRISULPLWLYHSK\V LFDOLW\ XQGHUOLHV WKH PRUH GHWDLOHG VFHQHZRUN WKDW $NDODLWLV DQG KHU DFWRUVHQJDJHLQDVWKH\FRQWLQXHWKHLUH[SORUDWLRQRIWKHSOD\ ,Q UHFHQW \HDUV $NDODLWLV KDV GHYRWHG DQ LQFUHDVLQJ DPRXQW RI WLPHWR¶WDEOHZRUN· GXULQJWKHHDUO\GD\VRIUHKHDUVDOV (YHQVR VKH JHWVKHUDFWRUVRQWKHLUIHHWE\WKHILUVWRUVHFRQGGD\ HQJDJLQJLQD FRPSOH[ VHULHV RI SK\VLFDO H[HUFLVHV ZKLFK ODVWV DQ\ZKHUH IURP WZHQW\PLQXWHVWRVHYHUDOKRXUV DQGVXSSRUWVWKHZRUNRQWKHWH[W LWVHOI 'LVFXVVLQJWKHUHKHDUVDOSURFHVVIRUKHUSURGXFWLRQRI3LQWHU·V 7KH %LUWKGD\ 3DUW\ DW WKH $PHULFDQ 5HSHUWRU\ 7KHDWUH $NDODLWLV H[SODLQV WKDW KHU PRYHPHQW H[HUFLVHV ¶KHOS GHYHORS D FRPSDQ\· DQG¶KHOSWKHDFWRUVOHDUQWRWDONWRHDFKRWKHUZLWKWKHLU ERGLHV· 6KH DGGV WKDW VKH¶ZRXOG QHYHU GR D VKRZ ZLWKRXW WKHVH H[HUFLVHV ,W·V YHU\ KDUG IRU PH WR JR LQWR UHKHDUVDO DQG MXVW VWDUW ZRUNLQJ²,QHHGWKHDFWRUVWRGRVRPHWKLQJILUVW 7KHDFWRUVOHDG PH WR H[SORUDWLRQ , GRQ·W OHDG WKHP· 6DLYHW] $V WKH DFWRUV SHUIRUP WKHVH H[HUFLVHV $NDODLWLV HLWKHU ZDWFKHV DWWHQWLYHO\ JRHVWKURXJKWKHH[HUFLVHVKHUVHOILQKHULPDJLQDWLRQ RUDOORZVKHU PLQGWRZDQGHUIUHHO\ $WWLPHVVKHDVNVWKHDFWRUVWRLPSURYLVHRQ WKHLURZQZKLOHVKHMRWVGRZQLGHDVDQGLPDJHV 6KHHPSKDVLVHVWKDW WKH H[HUFLVHV DUH IRU WKH DFWRUV· UDWKHU WKDQ KHU RZQ EHQHILW DQG UHIHUVWRWKHPDV¶SXUHDFWRUUHVHDUFK· :KLOHHDFKH[HUFLVHKDVLWVRZQSXUSRVHDQGVHWRILQVWUXFWLRQV PRVW RI WKHP UHTXLUH WKH DFWRUV WR PRYH DERXW WKH UHKHDUVDO VSDFH
-2$11($.$/$,7,6
WR PXVLF WKDW $NDODLWLV DVVRFLDWHV ² WKHPDWLFDOO\ HPRWLRQDOO\ RU VWUXFWXUDOO\ ² ZLWK WKH SDUWLFXODU WH[W RU SURMHFW VKH LV GLUHFWLQJ 6KH FRQWLQXDOO\ FRDFKHV IURP WKH VLGHOLQHV XUJLQJ WKH DFWRUV WR EH DZDUH RI WKH SK\VLFDO VHQVDWLRQ RI WKH VSDFH DURXQG WKHP SDUWLFX ODUO\WKHVSDFHEHWZHHQWKHP 6KHUHPLQGVWKHDFWRUVWREHDZDUHRI DQGWR¶XVH· WKHPXVLF HYHQLIZKDWWKH\KDSSHQWREHGRLQJSK\VL FDOO\RFFXUVLQRSSRVLWLRQWRLW IRUH[DPSOH PRYLQJLQVORZPRWLRQ WRPXVLFZLWKDIUHQHWLFEHDW 7KHDFWRUVDUHDVNHGQRWWRFKRUHR JUDSKWKHLUDFWLRQVWRWKHPXVLF EXWWREHFRQVFLRXVRIWKHPXVLF·V HPRWLRQDOTXDOLWLHVDQG¶WROHWWKHPXVLFLQ· ,QWKLVZD\ WKHPXVLF IDFLOLWDWHV WKH DFWRUV· LQYHVWLJDWLRQ RI LPDJHV DULVLQJ IURP WKHLU SHUVRQDOKLVWRULHV WKHWH[W WKHGLUHFWRU·VVXJJHVWLRQV RUIURPGHVLJQ HOHPHQWV LQ WKH SK\VLFDO VSDFH 2YHU WLPH WKH H[HUFLVHV VWUHQJWKHQ WKHDFWRUV· FRQQHFWLRQWRHDFKRWKHUDQGWRWKHVSDFHDURXQGWKHP ZKLFK HYHQWXDOO\ ZLOO FRQWDLQ VFHQHU\ SURSV OLJKWLQJ DQG PXVLF 7KH\ EHFRPH DFFXVWRPHG WR ZRUNLQJ DV DQ HQVHPEOH DQG WR FUHDWLQJERWKDSHUVRQDODQGVKDUHGYRFDEXODU\RILPDJHV PRYHPHQW DQGJHVWXUHVWKDWFDQEHLQYRNHGWKURXJKRXWWKHUHKHDUVDOSURFHVV $NDODLWLV FRPSDUHV WKH DFWRU·V VHQVH RI HQHUJ\ WR WKDW RI D WHDP DWKOHWH ZKRVH UHIOH[HV DUH DXWRPDWLF DQG FRQVLVWHQWO\ RULHQWHG WRZDUGVWKHSK\VLFDOWDVNRIPRYLQJ 7KHDFWRU OLNHWKHDWKOHWH XVHV SHULSKHUDO YLVLRQ WR VHQVH DQRWKHU SOD\HU·V DSSURDFK WR VHQVH WKH HQHUJ\ FRPLQJ IURP WKH VSHFWDWRUV WR VHQVH KRZ WR VKDSH WKH UK\WKP DQG G\QDPLFV RI WKH PRPHQW $NDODLWLV KDV VDLG WKDW VKH GLVOLNHV¶SHRSOHVWDQGLQJ>RQVWDJH@LQIURQWRIVFHQHU\ WDONLQJWRHDFK RWKHU· :KHWKHU WKH\ DUH SHUIRUPLQJ D SK\VLFDO H[HUFLVHV RU D VFULSWHG VFHQH IURP WKH SOD\ $NDODLWLV· DFWRUV DUH XUJHG WR¶EH LQ LW DQG VHH WKHPVHOYHV LQ LW· 7KH\ DUH HQFRXUDJHG WR JLYH WKHPVHOYHV RYHU HTXDOO\ WR WKH ILFWLYH FLUFXPVWDQFHV RI WKH H[HUFLVH RU VFHQH DQG WR WKH DFWXDO ¶ZKHUH· DQG ¶ZKR· WKDW DFWRU LV ² VSHFLILFDOO\ D ERG\ PRYLQJLQWKHDWULFDOVSDFH LQYHVWLJDWLQJDGUDPDWXUJLFDOHPRWLRQDO DUFKLWHFWXUDO VWUXFWXUH ZLWK FODULW\ DQG VLQFHULW\ $FFRUGLQJ WR $NDODLWLV WKH DFWRUV PXVW EH RSHQ WR HYHU\WKLQJ DURXQG WKHP ZLWKRXW EHFRPLQJ ¶ORVW LQ WKH HPRWLRQ· WKH\ PXVW DW HYHU\ PRPHQW EH DZDUH RI WKHLU H[DFW ORFDWLRQ LQ WKH SK\VLFDO DQG HPRWLRQDO JHRJUDSK\ RI WKH ZRUN 7KH W\SH RI RQVWDJH SUHVHQFH WKDW $NDODLWLV DVNV KHU DFWRUV WR LQYHVWLJDWH FDOOV XSRQ WKHP WR EH UHVSRQVLYHWR DQGUHVSRQVLEOHIRU VRPHWKLQJJUHDWHUWKDQWKHLU RZQ LQGLYLGXDOUROHV 7KHDFWRULQDQ$NDODLWLVSURGXFWLRQQRWRQO\LV WKH LPDJH EXW DOVR FDVWV LW NQRZLQJ H[DFWO\ ZKDW KH RU VKH LV FRQWULEXWLQJ WR WKH WRWDOLW\ RI WKH RQVWDJH FRPSRVLWLRQ ,Q GRLQJ
-2$11($.$/$,7,6
VR WKH DFWRUV HYHQWXDOO\ FRPH WR YLHZ WKHPVHOYHV QRW PHUHO\ DV FRPSRQHQWV EXWDOVRDVVKDSHUVRIWKHHQWLUHRQVWDJH¶SLFWXUH· $NDODLWLVRIIHUVWKHIROORZLQJLQVLJKWLQWRWKHLPDJLVWLFEDVHRIKHU GLUHFWRULDODSSURDFK ¶,JHWPRVWRIP\LGHDVIURPSLFWXUHV ,QIDFW DOO LPDJHV LQ WKH WKHDWUH DUH YLVXDO HYHQ ODQJXDJH ² LW·V LPSRVVLEOH WR UHDG ZLWKRXW PDNLQJ SLFWXUHV LQ \RXU PLQG 7KH FUXFLDO WKLQJ IRU PHLVDOZD\VWRUHPDLQWUXHWR\RXULPDJHV· 6KHKDVGHYHORSHGKHU SK\VLFDO H[HUFLVHV WR KHOS DFWRUV H[SORUH ZLWKLQ D VKDUHG VSDFH WKH FRQQHFWLRQV EHWZHHQ WKHLU SK\VLFDOLW\ DQG WKHVH YHU\ SLFWXUHV LQ WKHLUPLQGV DQGWRHQFRXUDJHWKHPWREHWUXHWRWKHLURZQSHUVRQDO LPDJHV $W 1HZ
-2$11($.$/$,7,6
SDVVLRQ RQ VWDJH $V D UHVXOW WKH VWDJH EHFRPHV D PDHOVWURP LQ ZKLFKLPDJH HPRWLRQDQGWKHERG\ZKLUOWRJHWKHU $NDODLWLV KDV UHPDUNHG WKDW IRU KHU ¶FKDRV QRW FRQIOLFW LV WKH HVVHQFHRIGUDPD· ²WKHLOORJLFDO WKHGLVUXSWLYHDQGWKHUHFNOHVV 6KH KDELWXDOO\ XQHDUWKV WKH VWUDQJH DQG SHUYHUVH LQ KLVWRU\ SROLWLFV DQG FXOWXUH :KLOH $NDODLWLV IUHTXHQWO\ VWDJHV ZRUNV ZULWWHQ E\ DQG DERXWSHRSOHIURPFXOWXUHVRWKHUWKDQWKH8QLWHG6WDWHV KHULPDJL QDWLRQLVFDXJKWE\WKRVHDVSHFWVRIWKHFROOHFWLYH$PHULFDQSV\FKH WKDWDUHWZLVWHG GHPHQWHG XJO\DQGIULJKWHQLQJ DQGWKDW ZLWKRXU SHFXOLDU WHQGHQF\ WRZDUG QDLYH RSWLPLVP ZH VHQWLPHQWDOLVH RU UHSUHVV +HUSURGXFWLRQVKDYHGHDOWZLWKVXFKGLVWXUELQJVXEMHFWVDV WKH VH[LVP DQG SDWULDUFK\ VXUURXQGLQJ WKH GHYHORSPHQW RI DWRPLF HQHUJ\ 'HDG(QG.LGV $+LVWRU\RI1XFOHDU3RZHU VWDJH ILOP WKH LQWHUWZLQLQJ RI SROLWLFDO IDLOXUH DQG VH[XDO WUDJHG\ LQ IDVFLVW,WDO\ ·7LV3LW\6KH·VD:KRUH WKHFXUUHQWRIK\SRFULV\ DQG IUDXG WKDW UXQV WKURXJK WKH 0RUPRQ UHOLJLRQ 7KH 0RUPRQ 3URMHFW:RUNVKRS DQGWKHJURWHVTXHV\VWHPRIFDSLWDOSXQLVK PHQWFDUULHGRXWWKURXJKDKRUULILF\HWVWUDQJHO\JORULRXVH[HFXWLRQ PDFKLQH ,QWKH3HQDO&RORQ\ ² &RPPHQWLQJRQWKH¶MR\RXV DQG GDQJHURXV UHXQLRQ RI YLROHQFH DQG KXPRU· LQ WKH SOD\V RI (XULSLGHV 6KDNHVSHDUH %HFNHWW DQG 3LQWHU $NDODLWLV VXJJHVWV WKDW WKHVHSOD\VDOORZXVWROLYHWKHSDUWRIRXUOLIHWKDWZHDUHIRUELGGHQ WR H[SHULHQFH ¶, WKLQN WKLV LQWHUHVW LQ YLROHQFH LV KHDOWK\ 9LROHQFH KDVWRGRZLWKFKDRVDQGGDUNQHVV DQGFKDRVDQGGDUNQHVVDUHSDUW RIUHOLJLRQ GUDPD OLWHUDWXUH WKHDWUH DQGPXVLF :HZDQWWRGLSLQWR WKDWIURPWLPHWRWLPH· 'UDZQ WR VXEMHFWV DQG WH[WV WKDW DGGUHVV DVSHFWV RI FKDRV LQ WKH LQGLYLGXDO DQG VRFLHW\ $NDODLWLV DOVR HPEUDFHV WKH FKDRV RI WKH XQNQRZQDVDQLQHYLWDEOHDVSHFWRIWKHFUHDWLYHSURFHVV +HUSK\VLFDO H[HUFLVHVVHUYHDVIRUPDOVWUXFWXUHVWRVKDSHDQGFRQWDLQWKLV FKDRV DOORZLQJWKHDFWRUVWRLQYHVWLJDWHSHUVRQDO WH[WXDODQGVFHQLFLPDJHV LQ DQ HPRWLRQDOO\¶VDIH· HQYLURQPHQW 7KH\ EHFRPH DFWLYH SDUWLFL SDQWV LQ WKH LPDJHPDNLQJ DVSHFW RI WKHDWUH DQ DUHD WUDGLWLRQDOO\ FRQVLGHUHG WKH SURYLQFH RI WKH GLUHFWRU DQG GHVLJQHU $V WKH PHPEUDQHEHWZHHQDFWLQJDQGGHVLJQEHFRPHVPRUHSHUPHDEOH WKH DFWRUV SHUIRUP ZLWK DQG ZLWKLQ WKH GHVLJQ LQVWHDG RI PHUHO\ LQ IURQWRILW 7KHLQWHJUDWLRQRIDFWLQJDQGGHVLJQLVWKXVDWWKHFRUHRI $NDODLWLV· GLUHFWLQJSURFHVV 6LQFHWKHHDUO\ V$NDODLWLVKDVEHHQFRQVLGHUHGDSURYRFDWLYH GLUHFWRURIDWWLPHVDVWRXQGLQJ DWWLPHVIODZHG H[SHULPHQWDOZRUN %HFDXVH VKH YDOXHV WKH YLVXDO VSDWLDO DQG FRPSRVLWLRQDO DVSHFWV RI WKHDWUH KHUZRUNWHQGVWRSURYRNHJUXPEOLQJDPRQJFHUWDLQFULWLFV
-2$11($.$/$,7,6
DQG VSHFWDWRUV ZKR FRQFOXGH WKDW VKH WKHUHIRUH GHYDOXHV WKH LQQHU SURFHVVHVRIWKHDFWRU ,QIDFW $NDODLWLVUHVSHFWVWKHDFWRU·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
8QOHVV RWKHUZLVH QRWHG DOO TXRWHV DWWULEXWHG WR $NDODLWLV DUH GUDZQ IURPWKHDXWKRU·VUHKHDUVDOQRWHVIRU·7LV3LW\6KH·VD:KRUH GLUHFWHGE\ $NDODLWLV *RRGPDQ 7KHDWUH &KLFDJR DQG 7KH 0RUPRQ 3URMHFW :RUNVKRS GLUHFWHG E\ $NDODLWLV $WODQWLF &HQWHU IRU WKH $UWV 1HZ 6P\UQD %HDFK )ORULGD DV ZHOO DV IURP SHUVRQDO LQWHUYLHZV DQG LQIRUPDOFRQYHUVDWLRQV ([DPSOHV RI $NDODLWLV· UHKHDUVDO PXVLF LQFOXGH -LPP\ &OLII ·V ¶%\ WKH :DWHUV RI %DE\ORQ· DQG 'DYLG %\UQH·V¶%XUQLQJ 'RZQ WKH +RXVH· IRU 7KH0RUPRQ3URMHFW:RUNVKRS DQGVRQJVE\0DUYLQ*D\HIRU7KH7URMDQ :RPHQ :HW]VWHRQ 5 ¶0DERX0LQHV· 1HZ
)XUWKHUUHDGLQJ %DUWRZ $ ¶-R$QQH $NDODLWLV· LQ %DUWRZ $UWKXU HG 7KH 'LUHFWRU·V 9RLFH 7ZHQW\2QH ,QWHUYLHZV 1HZ
$5,$1(0128&+.,1(
6DLYHW] ' $Q (YHQW LQ 6SDFH -R$QQH $NDODLWLV LQ 5HKHDUVDO /\PH 1+ 6PLWK .UDXV '(%25$+6$,9(7=
$5,$1(0128&+.,1( ² 7KHDWUH IRU0QRXFKNLQH LVDPDWWHURIWKUHHLQWHUUHODWHGSULRULWLHV XQGHUZKLFKDOORWKHUREMHFWLYHVDUHVXEVXPHG FROOHFWLYHFRQVWUXF WLRQ RI SURGXFWLRQV UDWKHU WKDQ WKH VLQJOH YLVLRQ RI D GLUHFWRU WKHDWULFDOLW\UDWKHUWKDQUHDOLVWLFUHSUHVHQWDWLRQ SROLWLFDOHQJDJHPHQW UDWKHUWKDQDHVWKHWLFLVP +HULGHDVDQGSUDFWLFHKDYHHYROYHGZLWKLQ WKHVHSDUDPHWHUVGXULQJWKHIRUW\\HDUVWKDWVKHKDVZRUNHGH[FOX VLYHO\ZLWKWKH7KpkWUHGX6ROHLOLQ3DULV 7KH FRPSDQ\ ZKLFK VKH FRIRXQGHG LQ ZDV D QRQ KLHUDUFKLFDORUJDQLVDWLRQRIHTXDOVDODULHVDQGVKDUHGUHVSRQVLELOLWLHV H[SUHVVLQJWKHEURDGO\/HIWSROLWLFVRILWVPHPEHUV 1RWVSHFLILFDOO\ DOLJQHG WR DQ\ SDUW\ LW SDUWLFLSDWHG LQ WKH VWXGHQW DQG ZRUNHUV· UHYROW RI 0D\ · WRXULQJ /D &XLVLQH $UQROG :HVNHU·V .LWFKHQ WR IDFWRULHVRQVWULNH 0QRXFKNLQHWKXVVKDUHGZLWK 9LODU WKHSULQFL SOHVRILQFOXVLYLW\DQGDFFHVVLELOLW\GHILQHGE\KLVQRWLRQRI¶SRSXODU WKHDWUH· DQGZLWK%UHFKW WKHLGHDWKDWWKHDWUHZDVLQVWUXPHQWDOLQ EULQJLQJDERXWVRFLDOFKDQJH 1HYHUWKHOHVV VKH KDV FRQVLVWHQWO\ UHMHFWHG VXFK GHVFULSWLRQV RI KHUZRUNDV¶GLGDFWLF· RU¶PLOLWDQW· ²DOOHJHGO\¶%UHFKWLDQ· FKDUDFWHULV WLFV DV VHHQ LQ WKH )UHQFK FRQWH[W RI WKH V DQG V 7KH WHUPV KDG VWXFN VLQFH WKH VHPLQDO DQG ERWKLQSURPHQDGHIRUP 7KH6ROHLOKDGVWDJHGWKHVHH[WUDRUGLQDU\ IUHVFRHVRIWKH)UHQFK5HYROXWLRQDVVRPHWKLQJRIDQDQDORJ\ZLWK WKH HJDOLWDULDQ PRYHPHQWV RI 0D\ ·
$5,$1(0128&+.,1(
UHODWLRQVKLS EHWZHHQ WKHDWUH VRFLHW\ DQG KLVWRU\ ZKLFK IRU KHU LV QRWDPDWWHURIQDWLRQDO EXWRIZRUOGKLVWRU\ 'RHV OLIH FRQVLVW RI VWD\LQJ ORFNHG LQ E\ IRXU ZDOOV RU RI NQRZLQJ RWKHUV RI WUDYHOOLQJ LQ DOO WKH VHQVHV WKDW ZH FDQ JLYH WR WKLV WHUP" :KHQ ZH PDNH WKHDWUH ZH FUHDWH ZH FRQVWUXFW D ZRUOG YLHZ RQ WKH VWDJH DURXQG WKH VWDJH DQG WKURXJKWKHZD\DXGLHQFHVUHFHLYHXV ,QDFWXDOIDFW ,GRQ·W OLNHVSHDNLQJDERXWDOOWKDWDVLILWZHUHGHWDFKHGIURPWKH UHVW 7KLVLVKLVWRU\ 2XUOLYHVDUHVLWXDWHGDWHYHU\PRPHQW LQ D KLVWRULFDO SHULRG ZH HLWKHU GHFLGH IURP HDUO\ FKLOG KRRGWKDWZHDUHDJLUORUDER\ZKRLVJRLQJWRSDUWLFLSDWH LQ KLVWRU\ RU ZH GHFLGH WKDW KLVWRU\ LV PDGH ZLWKRXW XV DQGSXWRXUKHDGLQDEODFNKROHDQGGRQRWPRYH /H0RQGH )HEUXDU\ 0QRXFKNLQH KHUH LV GLVFXVVLQJ (W VRXGDLQ GHV QXLWV G·pYHLO $QG 6XGGHQO\ 1LJKWVRI$ZDNHQLQJ ZKLFKWUHDWVWKHJHQRFLGHDQG H[LOHRIWKH7LEHWDQSHRSOH 6KHFRQWLQXHV :KHQ RQH VSHDNV RI WKHVH FXOWXUHV WKDW DUH GLVDSSHDULQJ IURP 7LEHW IURP &DPERGLD WKH\ DUH SLHFHV RI XV RI KXPDQLW\ WKDW DUH GLVDSSHDULQJ 0\ RQH WUHDVXUH LV WKH ZRUOG ,DPQHLWKHUGLVLQWHUHVWHGQRUDOWUXLVWLFLQZLVKLQJWR KDYHLWDVOLWWOHGHYDVWDWHGDVSRVVLEOH ,ELG 7KLVFRXOGEHGHVFULEHGDVDKXPDQLVWDQGKXPDQLWDULDQSROLWLFV ZKRVH LPSRUWDQFH LV HVSHFLDOO\ SDOSDEOH LQ 0QRXFKNLQH·V WKHPHV VLQFH ZKHQ VKH VWDJHG WKH WHQKRXU /·+LVWRLUH WHUULEOH PDLV LQDFKHYpH GH 1RURGRP 6LKDQRXN URL GH &DPERGJH 7KH 7HUULEOH EXW 8QILQLVKHG 6WRU\ RI 1RURGRP 6LKDQRXN .LQJ RI &DPERGLD 6XPPDULVHG WKH\GUDZDGHYDVWDWLQJLPDJH WKHPDVVGHVWUXFWLRQRI SHRSOHV UHJLFLGH PDWULFLGH ZDU VWUXJJOHDJDLQVWSROLWLFDODQGPRUDO RSSUHVVLRQ DQG VRFLDO LQMXVWLFH UHOLJLRXV IDQDWLFLVP DEXVLYH DXWKRULW\ LQWROHUDQFH H[LOH DV\OXPVHHNLQJ DQG KRPHOHVVQHVV $OO WKHVH IRU 0QRXFKNLQH DUH JOREDO RFFXUUHQFHV WKDW GHVWUR\ ¶KXPDQLW\· 1RRWKHUGLUHFWRUZRUNLQJDWWKHHQGRIWKHWZHQWLHWK FHQWXU\KDVSXWVXFKXUJHQWDQGDOOHPEUDFLQJVXEMHFWPDWWHUDWWKH YHU\KHDUWRIKLVKHUWKHDWUH :KHUH FRPSRVLWLRQ LV FRQFHUQHG WKH 6ROHLO ILUVW GUHZ LQWHUQD WLRQDODWWHQWLRQIRULWVSUDFWLFHRI FUpDWLRQFROOHFWLYH ZKLFKVXFFHHGHG
$5,$1(0128&+.,1(
LQ PRXQWLQJ ODUJHVFDOH DUWWKHDWUH SURGXFWLRQV &UpDWLRQ FROOHFWLYH UHIHUV WR WKH FROOHFWLYH ZULWLQJ RQ VWDJH QRW RQ SDSHU IURP ZKLFK WKH HDUO\ SURGXFWLRQV ZHUH GHYHORSHG ² /HV &ORZQV DQG /·$JH G·RU 7KH *ROGHQ $JH $OO PHPEHUV RI WKH FRPSDQ\ UHVHDUFKHG WKHLU PDWHULDO 6FULSWV ZHUH ZULWWHQ IURP LPSURYLVHG VLWXDWLRQV VWRULHV VFHQHV DQG FKDUDFWHUV 0QRXFKNLQH EHOLHYHVWKLVLVQHFHVVDU\EHFDXVH¶DFWRUVDUHDXWKRUVPRUHZLWKWKHLU VHQVLELOLWLHVDQGWKHLUERGLHVWKDQWKH\ZRXOGEHZLWKDEODQN VKHHW RISDSHU· :LOOLDPV 6FULSWLQJSK\VLFDOO\LQFOXGHGH[SHUL PHQWLQJZLWKFRVWXPHVDQGPDNHXSIURPWKHYHU\VWDUWVRWKDWWKH SHUIRUPHUV FRXOG YLVXDOLVH WKHLU ZRUN 7KLV VHHLQJ DSSURDFK KDV EHFRPHDSHUPDQHQWIHDWXUHRIWKH6ROHLO :KHQ ZDV PDGH 0QRXFKNLQH REVHUYHG WKDW VKH ZDV XQFHUWDLQ DERXW KHU H[DFW UROH LQ WKH FRPSDQ\ DOWKRXJK VKH EHOLHYHG VKH ZDV ¶WKHUH WR HQFRXUDJH WR HQHUJLVH· %DEHOHW DQG %DEHOHW %\WKHWLPHRI/·$JHG·RU KRZHYHU VKHZDVTXLWH VXUH WKDW FROOHFWLYH ZRUN GLG QRW LPSO\ ¶WKH VXSSUHVVLRQ RI WKH VSHFLILFSODFHRIHDFKLQGLYLGXDO· EXWUHOLHGRQHYHU\RQHRFFXS\LQJ WKHLU SODFH LQ D FHUWDLQ ¶GHPRFUDWLF FHQWUDOLVP· VR DV WR HQVXUH ¶PD[LPXP FUHDWLYLW\ LQ HDFK IXQFWLRQ· IXOILOOHG E\ WKHP 0QRXFKNLQH LQ :LOOLDPV +HU VSHFLDO IXQFWLRQ ZDV WR FHQWUDOLVHDFWLYLW\ 0QRXFKNLQH WKHQ GHILQHVKHUUROHRIGLUHFWRULQ IXQFWLRQDO WHUPV ZKLFK DUH QRW WKH VDPH DV KLHUDUFKLFDO RQHV DQG KDVUHWDLQHGKHUUROHDFFRUGLQJO\WRWKLVGD\ &UpDWLRQ FROOHFWLYH DIWHU /·$JH G·RU UHIHUV WR FROODERUDWLRQ ZLWK GHOLQHDWHGDUWLVWLFWDVNV 7KHDFWRUVFRQWLQXHGWRLPSURYLVH EXWQR ORQJHU LQYHQWHG WKH VFULSW 0QRXFKNLQH ZURWH 0pSKLVWR KHUVHOI DQG GLUHFWHG 6KDNHVSHDUH·V 5LFKDUG ,, 7ZHOIWK 1LJKW /D 1XLW GH URLV DQG +HQU\ ,9 6KH FRQWLQXHG KHU H[SORUDWLRQRI¶JUHDW· WH[WVZLWK/HV$WULGHV ² DWHWUDORJ\LQ ZKLFK,SKLJHQLDLQ$XOLV E\(XULSLGHVSUHFHGHV$HVFK\OXV· 2UHVWHLD WR KHOS DXGLHQFHV XQGHUVWDQG WKH HYHQWV RI WKH ODWWHU 0QRXFKNLQH·V UHWXUQWRSUHH[LVWLQJWH[WVZDVPRWLYDWHGE\WZRPDMRUGLIILFXOWLHV WKDWVKHKDGHQFRXQWHUHGSUHYLRXVO\ VKHFRXOGQRWGHYHORSWKHDUW RI WKH DFWRU KHU FRQFHUQ IURP WKH YHU\ EHJLQQLQJ RI KHU FDUHHU XQOHVV VKH JUDVSHG WKH SULQFLSOHV RI DFWLQJ LQ $VLD QRU FRXOG VKH VWDJH FRQWHPSRUDU\ HYHQWV DGHTXDWHO\ XQOHVV WKH ZKROH FRPSDQ\ OHDUQHG KRZ 6KDNHVSHDUH DQG WKH *UHHNV KDG KDQGOHG WKHLU FDWD FO\VPLFKLVWRU\ +HUQHHGWRFRPHWRJULSVZLWKWKHKRUURUVRIRXURZQKLVWRU\ OHG 0QRXFKNLQH WR IHPLQLVW DXWKRU +pOqQH &L[RXV ZKR VKH EHOLHYHG ZDVSURSHUO\SODFHGDVDZULWHU WRSURYLGHWKHNLQGRIWH[WV
$5,$1(0128&+.,1(
VKH UHTXLUHG &L[RXV· ZRUN VXVWDLQHG WKH 6ROHLO·V KXPDQLWDULDQ WKHPHV 1RURGRP RQ WKH PDVVDFUHV SHUSHWUDWHG E\ WKH .KPHU 5RXJH /·,QGLDGH RX /·,QGH GH OHXUV UrYHV 7KH ,QGLDG RU WKH ,QGLD RI WKHLU 'UHDPV RQ ,QGLD·V VWUXJJOH IRU LQGHSHQGHQFH /D 9LOOH SDUMXUH 7KH 3HUMXUHG &LW\ RQ KRPHOHVVQHVV DQG WKH +,9 FRQWDPLQDWHG EORRG VFDQGDO LQ )UDQFH LQ WKH HDUO\ V /HV 7DPERXUV VXU OD GLJXH 7KH )ORRG 'UXPPHUV RQ KRZ VHOI LQWHUHVWDQGJUHHGGHVWUR\FRPPXQLWLHVDQGZKROHVRFLHWLHV )RU (W VRXGDLQ &L[RXV DUUDQJHG WKH FRPSDQ\·V KXQGUHGV RI KRXUV RI LPSURYLVHGVFHQHVLQWRIRXUKRXUV $IWHUILIWHHQ\HDUVRIFORVHFROODE RUDWLRQ VKH PXVW EH FRQVLGHUHG DV LQWHJUDO WR WKH 6ROHLO·V GHYHORSPHQW &UpDWLRQ FROOHFWLYH DOVR LQFRUSRUDWHV RWKHU DFWLYLWLHV IRU ZKLFK WKH 6ROHLOLVUHQRZQHG 7KHDFWRUVKHOSWRPDNHFRVWXPHV VHWVDQGSURSV DQG FOHDQ DQG FRRN E\ URVWHU 7KH\ SUHSDUH PHDOV IRU DXGLHQFHV DV ZHOO ZKRPWKH\VHUYHDWDFRXQWHULQFRVWXPHDQGPDNHXSGXULQJ LQWHUYDOV 7KLVLVFRQVLVWHQWZLWK0QRXFKNLQH·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·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· GUHVVLQJ URRPV ,Q /D 9LOOH SDUMXUH D UXQZD\ VORSHV XSZDUGV IURP LW WRZDUGV WKH VWDJH 7KH )XULHV &L[RXV· FURVVUHIHUHQFH WR WKH )XULHV RI /HV $WULGHV VZHHS DORQJLWWRJUHDWHIIHFWWRUHDFKHDUWKIURP+DGHV
$5,$1(0128&+.,1(
,PPHGLDF\ RI LPSDFW LV RQH RI WKH GHILQLQJ IHDWXUHV RI 0QRXFKNLQH·V WKHDWULFDOLW\ DV LV WKH VHQVH RI RWKHUQHVV WKH DFWRUV FUHDWHWKURXJKWKHLUSHUVRQDRI$FWRU 6SHFWDWRUVZDWFKWKHPGUHVV DQG DSSO\ HODERUDWH PDNHXS ² 0QRXFKNLQH·V LQQRYDWLRQ IRU (XURSHDQWKHDWUH IURP$VLDQWUDGLWLRQ 7KDWVSHFWDWRUVPD\ZLWQHVV WKLV FURVVRYHU IURP UHDOLW\ WR IDQWDV\ LV HVVHQWLDO EHFDXVH 0QRXFKNLQH·V SURGXFWLRQV DUH HOOLSWLFDO ILJXUDWLRQV RI KLVWRULFDO HYHQWV QHYHUOLWHUDOUHSUHVHQWDWLRQVRIWKHP 5HDOLVPLVDQDWKHPDWR 0QRXFKNLQH HVSHFLDOO\ZKHQLWLQYROYHVSV\FKRORJLFDOSURELQJLQWR ¶FKDUDFWHU· (WVRXGDLQ IRUH[DPSOH GHDOVZLWKWKHSROLWLFDOVLWXDWLRQ RI7LEHWWKURXJKQXPHURXVPHWDSKRUVRIGLVSODFHPHQWDQGGHVWLWX WLRQ ,WVPDLQPHWDSKRULVDQLWLQHUDQWWURXSHRI7LEHWDQSHUIRU PHUV ZKR VWDQG IRU WKH SHRSOH RI 7LEHW DV D ZKROH $ VXEVLGLDU\ PHWDSKRULVDKRPHOHVVWUDPSZKRLVQRWUHDOLVWLF EXWDPL[WXUHRI &KDUOLH&KDSOLQDQGFRPPHGLDGHOO·DUWH·V$UOHFFKLQR 0QRXFKNLQH·V SUHPLVH LV WKDW WKH WKHDWUH PXVW XVH PHWDSKRULFDO WUDQVSRVLWLRQ IURP ZKLFK WKH DFWRU·V pWDW ¶VWDWH· LV LQVHSDUDEOH WR VSHDN HIIHFWLYHO\ DERXW WKH ZRUOG (WDW LV YHU\ PXFK 0QRXFKNLQH·V ZRUGDQGGHILQHVVRPHWKLQJLQWULQVLFWRKHUJRDOV ,QRXUZRUN ZKDWZHFDOOWKH¶VWDWH· LVWKHSULPDU\SDVVLRQ ZKLFK SUHRFFXSLHV WKH DFWRU :KHQ KH LV¶DQJU\· KH PXVW GUDZ WKH DQJHU KH PXVW DFW 6KDNHVSHDUH·V FKDUDFWHUV RIWHQ FRQWHPSODWH WKHLU LQWHULRU ODQGVFDSH 7KH SDVVLRQ WKH\ IHHO PXVWEHWUDQVODWHGE\WKHDFWRU 7KHUHLVDFKHPLVWU\ ,W·VQRW MXVW D TXHVWLRQ RI IHHOLQJ LW·V D TXHVWLRQ RI VKRZLQJ 2I FRXUVHRQHFDQ·WVKRZZKDWRQHGRHVQ·WNQRZRUZKDWRQH FDQ·W LPDJLQH EXW WKHUH VKRXOG EH D FKHPLVWU\ D WUDQVIRU PDWLRQ $Q DFWRU LV D SHUVRQ ZKR ILQGV D PHWDSKRU IRU DQ HPRWLRQ :LOOLDPV $QpWDW PXVWEHH[WUHPH VLQFHWRWHPSHULWZRXOGEHWRVXFFXPEWR SV\FKRORJLFDO WKHDWUH 7KLV LGHD JXLGHV 0QRXFKNLQH·V SHUVLVWHQW GLUHFWLRQ WR DFWRUV QRW WR LQGXOJH LQ VWDWHV EXW WR PRYH UDSLGO\ DFURVVWKHP¶LQUXSWXUHGGLVFRQWLQXLW\· LELG $FWRUVPXVWDOZD\V EHSK\VLFDOO\DQGPHQWDOO\FRQFHQWUDWHG²¶WKHUH· RU¶SUHVHQW· DVVKH SXWVLW²LQWKHLUVXFFHVVLYHVWDWHVVRDVWRSURMHFWWKHPIXOO\ $SDUW IURP GUDZLQJ RQ LPSURYLVDWLRQ WR DFKLHYH WKHVH HQGV VKH XVHV YDULRXV FRPPHGLD WHFKQLTXHV LQFOXGLQJ DFUREDWLFV DQG PDVNV DQG DGDSWV -DFTXHV /HFRT·V SULQFLSOHV RI FRUSRUHDO H[SUHVVLRQ ,Q /H 7DUWXIIH IRU LQVWDQFH D VLGHZD\V JDLW LV D PHWDSKRU IRU OXVW
$5,$1(0128&+.,1(
ZKLFKFRPELQHVZLWKRWKHUSK\VLFDOLVHGPHWDSKRUV IRUGRPLQDWLRQ RSSUHVVLRQDQGVRRQ WRVKRZWKHSURGXFWLRQ·VFULWLTXHRIUHOLJLRXV IXQGDPHQWDOLVP 0HWDSKRULFLW\ JLYHV 0QRXFKNLQH WUHPHQGRXV VFRSH IRU WDFNOLQJ WKH SUREOHPV RI WKH ZRUOG ² LQ GLVJXLVH RQH PLJKWVD\ VLQFHPHWDSKRULVDQLQGLUHFWPRGHRIDGGUHVV $OWKRXJK (XURSHDQ SK\VLFDO WKHDWUH KHOSHG WR VKDSH KHU ZRUN $VLDQ WKHDWUH EHFDPH 0QRXFKNLQH·V PDLQ UHIHUHQFH EHFDXVH LW SURYLGHV WKH WHFKQLFDO HPRWLRQDO VHQVXDO DQG LPDJLQDWLYH UHVRXUFHV VKH QHHGV IRU DQ RSWLPDO ¶WKHDWULFDOLW\· ZRUGV PXVLF DQG GDQFH WRJHWKHUZLWKVXPSWXRXVWH[WXUHVDQGFRORXUVLQFRVWXPHV KHDGJHDU DQG PDNHXS ¶:HVWHUQ WKHDWUH· VKH PDLQWDLQV KDV FUHDWHG PDJQLIL FHQW WH[WV ² 6KDNHVSHDUH 0ROLqUH DQG $HVFK\OXV ZKRP VKH KDV VWDJHG ² EXW¶2ULHQWDO WKHDWUH LV WKH DUW RI WKH DFWRU « WKH 2ULHQW NQRZV ZKDW DQ DFWRU LV· +HU 6KDNHVSHDUH SURGXFWLRQV H[SORUH WKH G\QDPLFVRI.DEXNLDQG1RKWKURXJKWKHZD\WKHDFWRUVUXQZLWK EHQWNQHHV KROGDSRVHZLWKNQHHVDSDUW VW\OLVHDUPPRYHPHQWV DQG VR RQ VRPH UHFDOOLQJ .XURVDZD·V 6DPXUDL ILOPV /HV $WULGHV GUDZV SULPDULO\ RQ .DWKDNDOL·V DUWLFXODWLRQ RI WKH H\HV KDQGV ILQJHUV DQG IHHW DQGLWVXVHRIRUQDWHKHDGJHDU (WVRXGDLQ KDVGDQFHVIURP7LEHW WKH FRPSDQ\ KDYLQJ EHHQ WDXJKW WKHP E\ WKH 7LEHWDQ SHUIRUPHU 'ROPD &KRGHQ 7KH )ORRG 'UXPPHUV LV DQ H[WUDRUGLQDU\ DWWHPSW DW JUDVSLQJWKH¶VHFUHWV· RI%XQUDNX 0DQ\RI0QRXFKNLQH·VSURGXFWLRQV XVH PDVNV LQ WKH PDQQHU RI %DOLQHVH 7RSHQJ RQ RFFDVLRQ PHUJHG ZLWKFRPPHGLD PDVNZRUN )DFHVDUHZKLWHQHG DVLQ.DEXNLDVZHOODV LQFRPPHGLD DQGFORZQLQJ ZKLOHH\HVDQGEURZVDUHJHQHUDOO\KHDYLO\ PDUNHGRXWLQEODFN :KLWHRQIDFHVLVDOVRDIRUPRIPDVNLQJ 0XVLF LVSOD\HGYLUWXDOO\ZLWKRXWDEUHDNLQDOOKHUSURGXFWLRQV DQGFDQEH VHHQ DV DQRWKHU UHIHUHQFH WR SHUIRUPDQFH SUDFWLFHV LQ $VLD :ULWWHQ DQG SHUIRUPHG E\ -HDQ-DFTXHV /HPrWUH ZKR PDNHV PRVW RI KLV LQVWUXPHQWV LW LV IXOO RI XQXVXDO VRXQGV EXW UHDOO\ VRXQGV RQO\ OLNH LWVHOI 0QRXFKNLQH·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
$5,$1(0128&+.,1(
¶FLWL]HQ·V WKHDWUH· SUHFLVHO\ EHFDXVH RYHU DQG DERYH DQ\ SROLWLFDO LPSHUDWLYH VSHFWDWRUV DUH IXOO\ FDSDEOH RI H[HUFLVLQJ WKHLU FLYLF UHVSRQVLELOLW\ 7KLV WR KHU PLQG LV ZKDW FRQVWLWXWHV D JHQXLQH VRFLRSROLWLFDOSHUVSHFWLYH ZKLFKLVJURXQGHG RIQHFHVVLW\ LQLQGL YLGXDODQGFROOHFWLYHHWKLFV 0QRXFKNLQH·VVHYHQKRXUORQJ/H'HUQLHUFDUDYDQVpUDLO 2G\VVpHV LQ QR ORQJHU DSSURSULDWHV 2ULHQWDO IRUPV +HUH VKH UHWXUQV WR WKH SULQFLSOHV RI FUpDWLRQ FROOHFWLYH HVWDEOLVKHG E\ DQG WR D OHVV PHWDSKRULFDO PRUH GLUHFW DQG HPRWLRQDOO\ FKDUJHG HQJDJH PHQWZLWKD¶FLWL]HQ·VWKHDWUH·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
0\WUDQVODWLRQ 6KHYWVRYD 0DULD ¶6XU/D9LOOHSDUMXUH ²8Q7KpkWUHTXLSDUOHDX[ FLWR\HQV HQWUHWLHQ DYHF $ULDQH 0QRXFKNLQH· $OWHUQDWLYHV 7KpkWUDOHV 7UDQVODWHG E\ PH DV¶$ 7KHDWUH WKDW 6SHDNV WR &LWL]HQV ,QWHUYLHZ ZLWK$ULDQH0QRXFKNLQH· :HVWHUQ(XURSHDQ6WDJHV ² ,ELG 0QRXFKNLQHDIILUPVWKDW¶ZKHQDXGLHQFHVDUHWUHDWHGOLNHFLWL ]HQV WKH\DUHDOUHDG\EHLQJDVNHGWREHFLWL]HQV·
)XUWKHUUHDGLQJ %DEHOHW 0DULH/RXLVHDQG%DEHOHW 'HQLV /H7KpkWUHGX6ROHLORXOD TXrWHGXERQKHXU 3DULV &156(GLWLRQV 'LDSROLYUH .LHUQDQGHU $GULDQ $ULDQH 0QRXFKNLQH DQG WKH 7KpkWUH GX 6ROHLO &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV 4XLOOHW )UDQoRLVH /·2ULHQWDX7KpkWUHGX6ROHLO 3DULV /·+DUPDWWDQ :LOOLDPV 'DYLG FRPSLOHGDQGHG &ROODERUDWLYH7KHDWUH 7KH7KpkWUH GX6ROHLO6RXUFHERRN /RQGRQ 5RXWOHGJH 0$5,$6+(97629$
7$'$6+,68=8.,
7$'$6+,68=8., ² 6LQFH ZKHQ 2Q WKH 'UDPDWLF 3DVVLRQV ,, ZDV ILUVW VHHQ DW WKH 7KpkWUHGHV1DWLRQV)HVWLYDOLQ3DULV 6X]XNL·VSURGXFWLRQVKDYHEHHQ DFFODLPHGZRUOGZLGHIRUWKHH[WUDRUGLQDU\LQWHQVLW\RIWKHLUDFWLQJ DQG WKHLU SURYRFDWLYH UHYLVLRQLQJ RI FODVVLF WH[WV 7DJJHG ¶OH *URWRZVNL MDSRQDLV· E\WKH)UHQFKVSHDNLQJSUHVV KLVZRUNZDVVHHQ DV D .DEXNLHVTXH UHDOLVDWLRQ RI $UWDXG·V ¶7KHDWUH RI &UXHOW\· 8QGHUSLQQLQJWKHVHDFFRODGHVZDVDWUDLQLQJV\VWHPEDVHGRQDQHZ V\QWKHVLV RI WUDGLWLRQDO DQG PRGHUQ WHFKQLTXHV DQG D ULJRURXVO\ RULJLQDO DSSOLFDWLRQ RI VXUUHDOLVP WR WKH¶PDNLQJ YLVLEOH· RI KXPDQ IDQWDVLHV 7KLVXVHGDSRVWPRGHUQFROODJHRIFODVVLFDOSOD\V WKHIDPLO LDULW\RIZKLFKKHOSHGIRUHJURXQGWKHRULJLQDOLW\RIWKHLUVHPDQWLF UHRUJDQLVDWLRQ 6X]XNL FODLPV WKDW ¶WKH DFWRU FRPSRVHV « RQ WKH EDVLV RI « VHQVH RI FRQWDFW ZLWK WKH JURXQG· 5LPHU DQG WKDW WKLV ¶GHWHUPLQHVHYHQWKHVWUHQJWKDQGQXDQFHRIWKHDFWRU·VYRLFH· LELG $VKHWROG-DPHV%UDQGRQLQ 6XSSUHVVLRQ >WDPH@ LV IXQGDPHQWDO WR WUDGLWLRQDO -DSDQHVH WKHDWUH« 7KHUHLVQRWKLQJQDWXUDODERXWDPLH VTXLQWH\HG SRVH RUWKHOHDSLQJURSS{ H[LWLQ.DEXNL« 6RWKHUHLVWKLV DOPRVW XQEHDUDEOH WHQVLRQ LQ WKH DFWRU « XVLQJ XQQDWXUDO PRYHPHQWV DQG YRLFH WR H[SUHVV QDWXUDO HPRWLRQV« 7KH .DEXNL DFWRU HQJXOIV WKH VSHFWDWRU LQ KLV RYHUZKHOPLQJO\ G\QDPLFVWDJHLPDJH 7KHVHFUHWRIWKLVNLQGRIDFWLQJLVLQVWDQ WDQHRXVUHOHDVHRIVXSSUHVVHGDFWLRQ WKHQ>IXUWKHU@VXSSUHVVLRQ« >UHOHDVH@ DQG VR RQ« , VXSSRVH \RX FDOO LW WHQVLRQ EXW LW LV QRWPXVFXODUWHQVLRQ LWLVSV\FKRORJLFDOWHQVLRQ %UDQGRQ ² P\LWDOLFV %XW 6X]XNL LV QRW DWDYLVWLF ,Q VKRZLQJ KLV DZDUHQHVV WKDW SRZHUIXO IRRWVWDPSLQJ ZDV ¶RULJLQDOO\ XVHG WR PDJLFDOO\ ZDUG RII HYLO· DV 2ULJXFKL 6KLQREX FODLPV 6X]XNL LV HTXDOO\ DZDUH WKDW LQ WKH FRQWHPSRUDU\ ZRUOG LWV XVDJH LV VLPSO\ WR¶HUDGLFDWH WKH RUGLQDU\ HYHU\GD\VHQVHRIWKHERG\· LQRUGHUWREXLOGDSRZHUIXOO\H[SUHVVLYH VWDJH SUHVHQFH 5LPHU )RU KLP ¶WKH >DFWRU·V@ VHOI PXVW DQVZHU WR WKH GHVLUHV WKDW RWKHU SHRSOH SODFH XSRQ WKHP« 7KH DFWRU·V UROH FDQ EH FRPSDUHG WR WKH UROH RI D ¶¶VKDPDQ·· LQ WKLV UHVSHFW· +H NQRZV WKDW WKH VWURQJHVW FRQWHPSRUDU\¶SRVVHVVLRQ· LV OLNHO\ WR EH FRQVXPHULVW DQG VLJQDOV LW E\ DUPLQJ &KHNKRY·V WKUHH VLVWHUV ZLWK 'HSDUWPHQW 6WRUH VKRSSLQJ EDJV ZKHQ WKH\ SLQH IRU 0RVFRZ DQG E\ SODFLQJ ODUJH F\OLQGULFDO UHGDQGZKLWH 0DUOERUR
7$'$6+,68=8.,
DVKFDQVRQWKHVWDJHRIKLV%DFFKDH $V+HLQHU0OOHUSXWVLWSLWKLO\ LQ+DPOHWPDFKLQH¶+HLO&RFD&ROD· 6X]XNL·V SRVWPRGHUQ WUDLQLQJ DQG DFWLQJ VW\OH ZRUN EHVW LQ SHUIRUPDQFH VSDFHV WKDW FRPELQH HOHPHQWV ROG DQG QHZ ,VR]DNL $UDWD·V UHQRYDWHG IDUPKRXVH WKH 0RXQWDLQ +DOO 6DQE{ 7KHDWUH ZLWK LWV KLJKWHFK DQRGLVHG DOXPLQLXP GDQFH IORRU LV UHPLQLVFHQW RI EXWVLJQLILFDQWO\GLIIHUHQW IURP D1RKVSDFH 7KHODWWHUKDVLWVRQH SRLQWRIVWDJHHQWU\DQGH[LWDORQJWKH KDVKLJDNDUL UDLVHGZDONZD\ KRZHYHU 6X]XNL·V 0RXQWDLQ +DOO LQJHQLRXVO\ DQG HFRQRPLFDOO\ ¶FRQVLVWV RI WZR ZDONZD\V ZKLFK WKHPVHOYHV VHUYH DV WKH SOD\LQJ VSDFH ,Q EHWZHHQ WKH IRUZDUG DQG UHDU ZDONZD\V D IOH[LEOH SDUWL WLRQOLNH VWUXFWXUH VK{ML LV LQVWDOOHG· LELG $Q\ RI WKHVH VKXWWHUV ZKHWKHU SDSHU ZRRG RU UHIOHFWLQJRSDTXH JODVV FDQ EHFRPH DQ H[LW RU HQWU\ SRLQW +LV SOD\LQJ VSDFH DLPV WR RSWLPLVH FRQWLQXRXV IORZV RI PRYHPHQW HOVHZKHUH KH KDV UHIHUUHG WR WKH GLUHFWRUDV¶DWUDIILFFRQGXFWRU· ,WLVP\YLHZ«WKDWDPRGHUQPDQ ZKRKDVQRSODFHWR FDOO KLV RZQ DQG ZKRVH JRGV KDYH GHSDUWHG OLYHV EHVW RQ WKHNLQGRIVWDJH,KDYHFRQVWUXFWHG $OORIXV DWDOOWLPHV HYHU\ZKHUHQRZVHHPWROLYHDOLIHRIFRPSRVHGSDVVDJHV ,ELG )RU H[DPSOH LQ D SURGXFWLRQ RI (OHFWUD DW WKH 'HOSKL 6WDGLXP LQ 6X]XNL XVHG ]HEUDFURVVLQJ ZDONZD\V WKDW LQWHUVHFWHG¶DW WKH QDYHORIWKHZRUOG· 7KHVHVXJJHVWHGERWKDPRGHUQWUDIILFLQWHUVHF WLRQ DQG DQ DERGH RI WKH GHDG IRU WKH EODFN DQG ZKLWH VWULSV RI FORWK KH XVHG ZHUH -DSDQHVH IXQHUDO DZQLQJV 6XFK IOH[LEOH SOD\LQJ VSDFHV LQ ZKLFK DUFKLWHFWXUDO VWUXFWXUHV DQG VHW GHVLJQV IUDPH DQG DFFHQWXDWHDFWRUUK\WKPVDQGSUR[HPLFV DUHZHOOVXLWHGWR6X]XNL·V SRVWPRGHUQVW\OHRISHUIRUPDQFHDQGFROODJHRIWH[WV 7KH DIRUHPHQWLRQHG SULQFLSOH RI VXSSUHVVLRQ WDPH XQGHUZULWHV 6X]XNL·VWUDLQLQJV\VWHP 7RFUHDWHDVWURQJVHQVHRISUHVHQFHRQVWDJH WKHDFWRUQHHGVWREXLOGDQDUWLILFLDOVHQVHRIUHVLVWDQFHLQWKHKDUD WKH SV\FKRSK\VLFDO FHQWUH EHWZHHQ WKH KLSV 7KLV LV WKH KRPH RI WKH EUHDWK WKH SODWIRUP RQ ZKLFK ZH SODFH RXU WRUVR RXU FHQWUH RI JUDYLW\ 6X]XNL KDV OLNHQHG WKH EDVLF SUHDFWLQJ SRVLWLRQ RI ERG\ UHDGLQHVV NDPDH WRD%RHLQJRQWKHUXQZD\MXVWEHIRUHWDNHRII HQJLQHVDUHUHYYLQJDWKLJKVSHHG EXWWKHEUDNHVDUHRQ 1RZKHUHRQ VWDJHLVWKLVWHQVLRQFRPSOHWHO\UHOD[HG ,QWKHZRUGVRI.DQ]H+LGHR ¶(QHUJ\«LVWKHFRQVHTXHQFHRIWHQVLRQEHWZHHQRSSRVLQJIRUFHV· ,Q-DSDQHVHSHUIRUPDQFHWUDGLWLRQ WKLVVWDWHLVFDOOHGKLSSDULDL
7$'$6+,68=8.,
2QH RI WKH PHQWDO LPDJHV JLYHQ WR KHOS WKH WUDLQHH ILQG WKH QHFHVVDU\ UHVLVWDQFHHQHUJ\ LQ WKH KDUD LV WKDW RI WKH DFWRU DV D SXSSHW RQHVWULQJSXOOVXSZDUGVIURPWKHFURZQRIWKHKHDG DQRWKHU GUDJVGRZQZDUGIURPWKHSHOYLV DWKLUGGUDZVIRUZDUGIURPWKHEHOO\ EXWWRQDQGDIRXUWKUHVWUDLQVIURPWKHVPDOORIWKHEDFN $OORIWKHVH LPDJLQHG OLQHV RI IRUFH KHOS WR EXLOG UHVLVWDQFH LQ WKH FHQWUH :LWK SUDFWLFH WKH DFWRU FDQ JHW LQWR WKLV FKDUJHG VWDWH LQVWDQWO\ MXVW E\ JRLQJLQWRNDPDH WKH¶UHDG\· SRVLWLRQ EXWWKHWUDLQHHQHHGVIXUWKHU GLVFLSOLQHVWRKHOSEXLOGGHHSHUDZDUHQHVVRIWKLVVHQVLELOLW\ $PRQJVWRWKHUH[HUFLVHV 6X]XNLKDVDOVRGHYLVHGDVHULHVRIDUWLIL FLDO ZDONV HDFK RI ZKLFK FKDOOHQJHV WKH FHQWUH RI EDODQFH LQ H[SUHVVLYHO\ GLVWLQFWLYH ZD\V +RZ WKLV IHHGV LQWR SHUIRUPDQFH H[SUHVVLYLW\ FDQ EH VXJJHVWHG E\ DQ H[DPSOH IURP 7KH &KURQLFOH RI 0DFEHWK LQZKLFKWKH)DUHZHOO&XOW¶ZLWFKHV· HQWHUHGWR¶6ORZ :DONV·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·VLPDJL QDWLYHHQJDJHPHQWZLWKWKHGLIIHUHQWVHQVLELOLWLHVJHQHUDWHGLQHDFK H[HUFLVH DQG WKHLU WHFKQLFDO DELOLW\ WR UHODWH FRPELQDWLRQV RI WKHVH ¶SDWWHUQV· WR WKH H[SUHVVLYH QHHGV RI WKH SHUIRUPDQFH PRPHQW 6X]XNLSURYLGHVVSDFHIRUKLVDFWRUV· RZQFUHDWLYLW\ )RULQVWDQFH LQ 7KH&KURQLFOHRI0DFEHWK WKHWKUHHDFWRUVLQYROYHGLQ/DG\0DFEHWK·V VOHHSZDONLQJ VFHQH FKRUHRJUDSKHG WKHLU RZQ SUHVHQWDWLRQ DW KRPH ZLWKLQ WKH JXLGHOLQHV VHW EHIRUH 6X]XNL VHW DERXW UHILQLQJ DQG VKDSLQJLWLQUHKHDUVDOV 7KH DFWRU·V DELOLW\ WR IDVFLQDWH LV FUHDWHG E\ WKH DPRXQW DQG TXDOLW\RIHQHUJ\UDGLDWHGE\WKHERG\LQDOOGLUHFWLRQV 7KLVHQHUJ\ LVEXLOWWKURXJKDFRKHUHQWV\VWHPRIUHVWUDLQW WDPH $VLQ1RK WKH DFWRUEXLOGVSUHVHQFHE\FUHDWLQJWKHZLOOWRPRYH EXWGHOLEHUDWHO\ KROGVEDFNRQGRLQJVRXQWLOWKHLQQHUWHQVLRQEHFRPHVXQEHDUDEO\ KLJK 2QFHLQPRWLRQ WKHJRDOLVWREHFRPHFRQVFLRXVRIWKHERG\·V HQWLUH VWUXFWXUH DV D NLQG RI PRYLQJ VFXOSWXUH 7KH LQIOXHQFH RI .DEXNLSULQFLSOHV LQZKLFKDFWLRQIORZVIURPRQHFOLPDFWLFIUHH]H SRVH PLH WR WKH QH[W LV FOHDU KHUH ² EXW VR DUH LWV DIILQLWLHV ZLWK QRQ-DSDQHVH WKHDWUH IRUPV 0H\HUKROG LQ SDUWLFXODU UHIHUV WR WKH VWDJHDV¶DSHGHVWDOIRUVFXOSWXUH·
7$'$6+,68=8.,
:KLOH 6X]XNL KDV DGPLWWHG WKDW KLV WUDLQLQJ FRXOG VHUYH RWKHU VW\OHVRISHUIRUPDQFH KHDVVHUWVWKDW IRUKLP LWERWKHPHUJHVRXWRI KLVSRVWPRGHUQDZDUHQHVVRIWKHILVVXUHVLQRXUZRUOGDQGVHUYHVKLV GUDPDWXUJLFDO XQGHUOLQLQJ RI WKRVH ¶JDSV· 5\XWD &DUUXWKHUV DQG *LOOLHV ,WKLQN,·PFORVHWR%HFNHWW« 7KLVPHDQV,EHOLHYHWKHUHLV QRDEVROXWHVWDQGDUGZKLFKFDQREMHFWLI\WKHVHOIRUHVWDE OLVKLGHQWLW\« %XWZKDW,·PVD\LQJLVWKDWSHRSOHZKROLYH LQ WKH UHDO ZRUOG DOVR KDYH IDQWDVLHV DQG LOOXVLRQV $QG ,·P VD\LQJWKDWWKHVHKDYHQRHQGDQGFDQQRWEHVROYHG ,ELG ² 6X]XNL·V ORQJ WHUP FRQFHQWUDWLRQ RQ WKLV SUREOHPDWLF FKDQQHOV KLV ZRUN EHWZHHQ QDUURZ EDQNV LQ DQ H[WUDRUGLQDULO\ GHHS ULFK DQG VWUDQJHZD\ $VKHKDVREVHUYHG ¶8VXDOO\DQLQVDQHSHUVRQLVP\PDLQ FKDUDFWHU· LELG %\ FROODJLQJ DQG UHSOD\LQJ WKHDWUH FODVVLFV ² VXFK DV 7KH 7URMDQ :RPHQ .LQJ /HDU DQG 7KH &KHUU\ 2UFKDUG ² WKURXJK WKH GLVWRUWLQJ FRQVFLRXVQHVV RI D VHQLOH PDG RU DOLHQDWHG PDQ RU ZRPDQ KH XQGHUZULWHV D VWUDWHJ\ IRU XQFRYHULQJ DQG ¶PDNLQJ YLVLEOH· WKH LQYLVLEOH ZRUOG RI WKH KXPDQ VXEFRQVFLRXV E\ ZKLFK ZH DUH DOO ¶SRVVHVVHG· 6X]XNL LV SHUKDSV XQLTXH DPRQJVW FRQWHPSRUDU\ GLUHFWRUV LQ FKRRVLQJ WR EDVH KLV WKHDWULFDO OLIH ZRUN RQDQH[SORUDWLRQRIWKLVXELTXLWRXV EXWKLWKHUWRODUJHO\XQH[SORUHG WHUULWRU\ 7KHFULWLF6HQGD$NLKLNRREVHUYHV ,W·VUDWKHUHDV\WREHUDGLFDODQGFDUULHGDZD\E\LGHDV>LQ WKHWKHDWUH@ DQG6X]XNLNQRZVYHU\ZHOOWKDWWKLVLVRIWHQ DFKLHYHG ZKHQ WKH ORZHU ERG\ LV IRUJRWWHQ $JDLQVW WKH ¶IORDWLQJ· TXDOLW\ RI LGHDV 6X]XNL DQG KLV FRPSDQ\ VHW ¶PLVHUDEOHQHVV· DVDVLJQRIWKHORZHUERG\ 7KLVIHHOLQJLVD FRQVWDQW WKUHDG UXQQLQJ WKURXJKRXW WKH GUDPD KH SURGXFHV« 7KLV¶PLVHUDEOHQHVV· LQ WKH IRUP RI WKHDWULFDO H[SUHVVLRQ RSHQV D ILVVXUH DW PDQ\ GLIIHUHQW OHYHOV RI KXPDQ H[LVWHQFH 2Q 6X]XNL·V VWDJH WKH XSSHU DQG ORZHU KDOYHV RI WKH ERG\ ² WKH FRQFHSWXDO DQG SK\VLFDO WKH FRQVFLRXV DQG XQFRQVFLRXV GUHDP DQG UHDOLW\ VFULSW DQG ERG\ ODQJXDJH ² DOZD\V KDYH D ELJ JDS EHWZHHQ WKHP WKRXJK WKH\ DUH DOVR HQWZLQHG DQG LQ D VWDWH RI WHQVLRQ DQGVWUXJJOH 6DLWRK ²
7$'$6+,68=8.,
,Q6X]XNL·VZRUGV ,I,JDYHDVFULSWWRP\DFWRUV WKH\ZRXOGJLYHLWDSV\FKR ORJLFDOUHDGLQJ« 7KH\ZRXOGNLOOLW 7KDWZDVZK\,>ILUVW@ WULHGLQ'UDPDWLF3DVVLRQV, > @WRVHSDUDWHWKHOLQHVIURP WKHLU FRQFUHWH SK\VLFDO VHOIFRQVFLRXVQHVV RQ VWDJH , ZDV WU\LQJ WR FDQFHO RXW WKH OLQHV· >RULJLQDO@ VLJQLILFDQFH DQG FUHDWH D VHPDQWLF ILHOG LQ ZKLFK WKHUH ZDV QR FRUUHFW DSSURDFK· WROHDQRQ« ,GRQ·WGRDUHDGLQJRIWKHVFULSW« 7KH EHVW DFWLRQ LV WR FUHDWH D ZKLUOSRRO RI QHZ PDWHULDO FUHDWLRQRXWRIWKHROG ,ELG ² $FWLQJWHFKQLTXH GUDPDWXUJLFDOFROODJHRISOD\PDWHULDOVDQGHFOHFWLF PLVHHQVFqQH DUH DOO FRPELQHG WR HPSKDVLVH RXU¶XQJURXQGHG· SRVW PRGHUQ FXOWXUDO FRQGLWLRQ )RU H[DPSOH LQ 'UDPDWLF 3DVVLRQV ,, WKH VHW LV FRQVWUXFWHG WR V\PEROLVH WKH VXEFRQVFLRXV RI DQ ROG ZRPDQ ORFNHGXSE\KHUGDXJKWHUZKRDPXVHVKHUVHOIE\DFWLQJRXWVFHQHV IURP KHU IDYRXULWH .DEXNL DQG 6KLQSD SOD\V $V WKH OLJKWV JR XS QXPHURXVVK{ML SDSHUGRRUV DUHUHYHDOHG KXQJIURPWKHFHLOLQJLQD VHHPLQJO\ KDSKD]DUG SDWWHUQ WKDW VXJJHVWV D VXUUHDOLVW FROODJH ² SHUKDSVHYHQD&XELVWIUDJPHQWDWLRQRIWKHKXPDQLVWRUJDQLVDWLRQRI H[SHULHQFH WKURXJK ¶FKDUDFWHU DQG VHWWLQJ· $V WKH VWDJH GLUHFWLRQV LQGLFDWH WKH\¶ORRNDVLIWKH\·UHIO\LQJDZD\LQWRWKHVN\· OLNHWKHROG ZRPDQ·VWKRXJKWV XQPRRUHGIURPWKHLUHYHU\GD\FRQWH[WV /LNHWKH1RKIDQ 6X]XNL·VSURSVFDQWDNHRQGLIIHUHQWVLJQLILFD WLRQV WKURXJK LQWHUVXEMHFWLYLW\ ,Q 'UDPDWLF 3DVVLRQV ,, WKH ROG ZRPDQ WULXPSKDQWO\ SUHVHQWV D WRLOHW UROO WR 6DNXUD DV¶RXU IDPLO\ WUHDVXUH WKH 0L\DNRGRUL VFUROO· ,Q 7KUHH 6LVWHUV WKH ZD\V 2OJD 0DVKDDQG,UHQDKROGRSHQXPEUHOODVRYHUKHDG HYHQZKHQHDWLQJD PHDO VXJJHVW WKHLU GLIIHULQJ REVHVVLRQV ZKLOH -XOLHW·V XPEUHOOD LQ :DLWLQJIRU5RPHR WDNHVRQDOLIHRILWVRZQ LQGLFDWLQJWKHVWUHQJWKRI KHU GHVLUH E\ WXJJLQJ KHU DERXW OLNH D SXSSHW ZKHQHYHU¶5RPHR· SDVVHV ,Q7KH&KURQLFOHRI0DFEHWK ZKHQWKHROGPDQZKRLPDJLQHV KLPVHOI WR EH 0DFEHWK GHPDQGV¶*LYH PH PLQH DUPRXU· 6H\WRQ WKHFRRN·V UHVSRQVH LV WR WDNH WKH QDSNLQ WKDW KDG FRYHUHG KLV PHDOVRQZKHHOV GLQQHU DQG WLH LW URXQG WKH QHFN RI WKLV QXUVLQJ KRPH¶0DFEHWK· OLNHDELE 6X]XNL·V FRVWXPHV DQG PXVLF DOVR VHUYH WR LQGLFDWH ¶JDSV· ,Q ,YDQRY 6X]XNL WDNHV KLV FXH IURP &KHNKRY·V UHIHUHQFH WR WKH ORFDO JHQWU\DV¶=XOXV· WRSK\VLFDOLVHRXUVHQVHRI,YDQRY·VDOLHQDWLRQ +H GUHVVHV WKHP LQ ZHLUG ODPSVKDGH KDWV DQG PLOLWDU\ GHFRUDWLRQV
7$'$6+,68=8.,
SODVWLF KRUQULP JODVVHV DQG IDOVH QRVHV DQG SODFHV WKHP LQ EDVNHWV DV ¶EDVNHW FDVHV·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¶PDGQHVV· WKURXJK UXSWXUH ZLWK WKH H[WHUQDO ZRUOG ZKHWKHU WKURXJK H[FHVVLYH VHOIUHIOHFWLRQ GD\GUHDPLQJRUEHLQJRSSUHVVHG 7R LQFUHDVH WKLV VHQVH LQ ,YDQRY 5RJHU 5H\QROGV· VSHFLDOO\ FRPPLVVLRQHG PXVLF VXJJHVWV VXFK WKLQJV DV ORQHO\ ZKDOH FDOOV DQG WKHFUHDNVDQGJURDQVRIDVXEPDULQHWKDW WRDYRLGDWWDFN KDVGLYHG WRRGHHS ,Q7URMDQ:RPHQ RQWKHRWKHUKDQG DEODVWRISRSPXVLF HQND UHWXUQV XV IURP WKH GUHDP RI D GLVSRVVHVVHG ROG EDJODG\ WR WKHKDUVKUHDOLWLHVRIKHUZDVWHODQGZRUOG $V&KDUOHV-HQFNVUHPLQGVXV SRVWPRGHUQLVPLV¶FRQFHLYHGDVD ZLGHODQJXDJHZKLFKFXWVDFURVVKLJKDQGORZWDVWHFXOWXUHVZLWKD GRXEOHFRGLQJ WKDW VWLOO KROGV WKH LQWHJULW\ RI HDFK YRLFH· 7KURXJK LQWHUFXOWXUDO SURGXFWLRQV WKDW VXVWDLQ WKH LQWHJULW\ RI GLIIHUHQWO\ FRGHG YRLFHV 6X]XNL KDV VSHQW WKLUW\ \HDUV H[SORULQJ WKH JDS EHWZHHQ WUDGLWLRQDO DQG PRGHUQ DQG PDLQVWUHDP DQG PDUJLQDO FXOWXUHV 3HUKDSV WKH FOHDUHVW H[DPSOH RI WKLV LV KLV %DFFKDH LQ ZKLFK PL[HG FDVWV RI -DSDQHVH DQG $PHULFDQ DFWRUV VSHDN SRZHUIXOO\ WR HDFK RWKHU ² DQG WR WKHLU DXGLHQFHV DW KRPH DQG DEURDG ² WKURXJK VLJQV DQG LQ WRQJXHV &DUUXWKHUV DQG
3,1$%$86&+
%UDXQ (GZDUG 0H\HUKROGRQ7KHDWUH /RQGRQ 0HWKXHQ 6X]XNL 7DGDVKL 1DLNDNXQRZD 6X]XNL7DGDVKLHQJHNLURQVKù 7KH 6XP RI WKH ,QWHULRU $QJOHV 6X]XNL 7DGDVKL·V &ROOHFWHG 7KHDWUH :ULWLQJV 7RN\R -LULWVXVK{E{ ² )HQ (OLVDYHWD WUDQV &KHNKRY 3OD\V +DUPRQGVZRUWK 3HQJXLQ ,QWHUYLHZ IROORZLQJ ,YDQRY LQ WKH 1+. 79 VHULHV 6X]XNL 7DGDVKL QR VHNDL WUDQV .D]XNR(JXFKLDQG,DQ&DUUXWKHUV 3DSDGDNLV $QGUHDV HG 3RVW0RGHUQLVP RQ 7ULDO /RQGRQ $FDGHP\*URXS
)XUWKHUUHDGLQJ %UDQGRQ -DPHV ¶7UDLQLQJDWWKH:DVHGD/LWWOH7KHDWUH 7KH6X]XNL 0HWKRG· 7KH'UDPD5HYLHZ &DUUXWKHUV ,DQ DQG
3,1$%$86&+ ² )DPRXVO\VD\LQJWKDWVKHZDV¶QRWVRPXFKLQWHUHVWHGLQKRZSHRSOH PRYHDVLQZKDWPRYHVWKHP·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¶H[SUHVVLRQ GDQFH· RI WKH V DQG V UHYLYHG LQ *HUPDQ\ DIWHU WKH 6HFRQG :RUOG :DU 3UHYLRXV
3,1$%$86&+
H[SRQHQWVLQFOXGHG0DU\:LJPDQ 5XGROI/DEDQDQG-RRVVKLPVHOI 6KH VWXGLHG DW WKH -XLOOLDUG 6FKRRO RI 0XVLF LQ 1HZ
3,1$%$86&+
DQG VKDUS FRPSRVLWLRQDO DQG HPRWLRQDO UHYHUVDOV WKDW VXUSULVH GHOLJKWDQGGLVFRPIRUWDXGLHQFHV $OORIWKHVHHIIHFWVDUHGHVLJQHGWR VWLPXODWH SHUFHSWLRQ RQ PXOWLSOH SODQHV ZKHUH TXHVWLRQV DERXW GDQFHWKHDWUHDUHDOVRTXHVWLRQVDERXWVRFLDOOLIH DQGZKHUHQRWKLQJ FDQEHKHOGWREHXQHTXLYRFDOO\WUXH ,QGHHG %DXVFK FXOWLYDWHV HTXLYRFDWLRQ WR DQ XQSUHFHGHQWHG GHJUHH 7KH VXDYH PHQ LQ EHDXWLIXOO\ FXW VXLWV ZKR IHDWXUH LQ VR PDQ\RIKHUSLHFHVFDXVHVSHFWDWRUVWRUHIOHFWXSRQWKHHOHJDQFHRI OLWKHDQGUHOD[HGERGLHVLQPRWLRQ
3,1$%$86&+
GDQFHHOHPHQW %DXVFKKDGDOUHDG\H[SORUHGLWVZKLSODVKPRYHPHQWV LQ /H 6DFUH GX SULQWHPSV DQG ZDV WR UHWXUQ WR LW WKHUHDIWHU HYHQ REVHVVLYHO\ 6KH ZDV WR UHZRUN /H 6DFUH IRU WKH %DOOHW GH O·2SpUD 1DWLRQDO GH 3DULV LQ PLQGIXO RI WKLV FRPSDQ\·V H[WUDRUGLQDU\ EDOOHWLF WUDLQLQJ 6KH XVHV VKRUW ILOP FOLSV RU HOVH SURMHFWV RQJRLQJ VHULHV RI LPDJHV RQWR WUDQVSDUHQW VFUHHQV DV RFFXUVLQ0DVXUFD)RJR ZKHUH LQDZLWW\WURPSHO·±LO GDQFHUVVOHHSLQ JLJDQWLF EORVVRPV WKDW ZDYH DQG FORVH OLNH DQHPRQHV EHQHDWK WKH VHD +HU H[SHULHQFH RI DFWLQJ LQ )HOOLQL·V $QG WKH 6KLS 6DLOV 2Q OHG KHU WR KHU ILOPGDQFH 7KH /DPHQW RI WKH (PSUHVV ²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
3,1$%$86&+
RIWHQZLWKVRPHDQJVW %DXVFKFRQWRXUVKHUGDQFHDVZHOOIURPZKDW FRXOG EH WHUPHG PRXYHPHQWV WURXYpV VXFK DV ZDONLQJ ZDVKLQJ FDUU\LQJ EDELHV FDUHVVLQJ NLVVLQJ VPRNLQJ DQG DOO VRUWV RI OHVV REYLRXV URXWLQH PRYHPHQWV 7KH OHVV OLNHO\ WKHLU SURYHQDQFH WKH PRUHVWDUWOLQJWKH\DSSHDUWRWKHVSHFWDWRU·VH\H 'HYLVLQJLVNH\WR%DXVFK·VSUDFWLFH 6KHDVNVKHUGDQFHUVDZLGH UDQJHRITXHVWLRQVRQZKLFKWKH\LPSURYLVH DQGDVNVWKHPWRSXVK EDFNWKHLUSV\FKRORJLFDOOLPLWVZKLOHWKH\JR¶IURPWKHLQVLGH RXW· DV VKH SXWV LW DV LI VKH ZHUH TXRWLQJ 6WDQLVODYVN\ %DXVFK XVHV WKHLU SHUVRQDO H[SHULHQFHV HVSHFLDOO\ WKHLU DQ[LHWLHV DV WKH YHU\ VXEMHFW PDWWHU RI SHUIRUPDQFH &XHV UHRULHQW WKHLU GLUHFWLRQ DV VKH HGLWV DQG UHHGLWV WKHLU LQYHQWLRQV ,QVWHDG RI EHLQJ FUDIWHG XSRQ WKH\ FUDIW WKHPVHOYHV LQWR ZKDW HYHQWXDOO\ EHFRPH SHUIRUPDQFH SLHFHV 6XFK SDUWLFLSDWLRQ LQ FKRUHRJUDSK\ JLYHV GDQFHUV D VHQVH RI RZQHUVKLS %DXVFK·V DSSURDFK DV D ZKROH LV VKDUHG QRW VR PXFK E\ FKRUHRJUDSKHUV :LOOLDP )RUV\WKH EHLQJ D PDMRU H[FHSWLRQ DV E\ H[SHULPHQWDO WKHDWUH GLUHFWRUV DQG UHVHPEOHV PRVW RI DOO WKH ZRUNLQJPHWKRGVRI/HY 'RGLQ 6KHKDVQRW\HWEHHQVXSHUVHGHG HYHQ E\ WKH PRVW ERUGHUEUHDNLQJ FKRUHRJUDSKHUV RI WRGD\ LQ KHU VXEOLPH FHOHEUDWLRQ RI WKH PHQWDO DQG SK\VLFDO SRZHUV RI GDQFHUV ZKRDUHFRQVXPPDWHSHUIRUPHUVLQWKHVWURQJHVWVHQVHRIWKLVWHUP 1RWHV
4XRWHG LQ 0DQQLQJ 6 $OOHQH DQG %HQVRQ 0 ¶,QWHUUXSWHG &RQWLQXLWLHV 0RGHUQ 'DQFH LQ *HUPDQ\· 7KH 'UDPD 5HYLHZ 4XRWHGLQ+RJKH 5 3LQD%DXVFK +LVWRLUHVGHWKpkWUHGDQVp 3DULV /·$UFKH
)XUWKHUUHDGLQJ &RG\ * ¶:RPDQ 0DQ 'RJ 7UHH 7ZR 'HFDGHV RI ,QWLPDWH DQG 0RQXPHQWDO%RGLHVLQ3LQD%DXVFK·V7DQ]WKHDWHU· 7KH'UDPD5HYLHZ ² 0DQQLQJ 6 $OOHQH ¶$Q$PHULFDQ3HUVSHFWLYHRQ7DQ]WKHDWHU· 7KH 'UDPD5HYLHZ ² 0OOHU + DQG6HUYRV 1 ¶([SUHVVLRQLVP"¶¶$XVGUXFNVWDQ]·· DQGWKH 1HZ'DQFH7KHDWUHLQ*HUPDQ\· 'DQFH7KHDWUH-RXUQDO ² 6HUYRV 1 3LQD%DXVFK:XSSHUWDO7DQ]WKHDWHURU7KH$UWRI7UDLQLQJD *ROGILVK WUDQV 3 6WDGLp &RORJQH %DOOHWW%KQHQ9HUODJ 0$5,$6+(97629$
5(;&5$03+251
5(;&5$03+251 ² ,Q 5H[&UDPSKRUQVWDJHG +DPOHW DQG0HDVXUHIRU0HDVXUH LQ UHSHUWRU\DWWKH3OD\ER[7KHDWUHLQ0HOERXUQH 7KHSOD\VZHUHSUHVHQWHGRQDEDUHVWDJH DURXQGZKLFKWKH DFWRUV DQG RQH PXVLFLDQ VDW RU NQHOW RQ VPDOO -DSDQHVH VWRROV DQG ZHUH YLVLEOH WR WKH DXGLHQFH WKURXJKRXW 7KH VWDJHZDVOLWZLWKDEURDGZDVKRIZKLWHOLJKW DQGWKHRQO\ OLJKWLQJ FKDQJH ZDV D ORZ OLJKW VWDWH IRU WKH QLJKW VFHQHV 7KH DFWRUV DQG PXVLFLDQ VXSSOLHG PXVLF DQG VRXQG HIIHFWV XVLQJ VPDOO SHUFXVVLRQ LQVWUXPHQWV DQG WXQHG ZLQH JODVVHV « WKH PLQLPDO VHWWLQJ SURSV DQG OLJKWLQJ PHDQW WKDW WKH DFWRUV· DQG DXGLHQFHV· FRQFHQWUDWLRQ ZDV HQWLUHO\ RQ ZRUGV DQGSRVLWLRQ« 7KH VWDJH LWVHOI ZDV SDLQWHG ZLWK DQ LQWHUORFNLQJ UHG JUHHQ VLOYHU DQG EODFN SDWWHUQ FKDUDFWHULVWLF RI &UDPSKRUQ·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·VGHVLUHWRPDNHWKHDWUH KDUG ²DQH[DFWLQJH[SHULHQFH 0LQFKLQWRQ UHFDOOV WKDW ¶>W@\SLFDOO\ KH KDG OLWWOH LQWHUHVW LQ ZKDW DXGLHQFHVPDGHRIWKHSURGXFWLRQV UHPDUNLQJWKDWKHWKRXJKWDXGL HQFHVVKRXOGKDYHWRVLWDQH[DPEHIRUHDWWHQGLQJ· 7KH +DPOHW DQG 0HDVXUH ZHUH WKH FXOPLQDWLRQ RI 7KH $FWRUV· 'HYHORSPHQW6WUHDPDWWKH3OD\ER[ RQHRI&UDPSKRUQ·VLOO IDWHG DWWHPSWV WR HVWDEOLVK DQ HQVHPEOH FRPSDQ\ RI DFWRUV FRPPLWWHG WR D VXVWDLQHG LQWHQVLYH H[DPLQDWLRQ RI WKH DFWRU² GLUHFWRU UHODWLRQVKLS $ GHVLUH WR ZRUN ZLWK VXFK D FRPSDQ\ GURYH &UDPSKRUQ WKURXJKRXW KLV FDUHHU 7RZDUGV WKH HQG RI KLV OLIH KH ZDV VWLOO SXUVXLQJ WKDW JRDO VHHNLQJ IXQGLQJ IRU DQ HQVHPEOH FRPSDQ\ZKLFKZRXOGZRUNWRZDUGVWKH HVWDEOLVKPHQW RI D SHUIRUPDQFH VW\OH ZKLFK DULVHV GLUHFWO\ IURP D FORVH VWXG\ RI FODVVLF WH[WV LH D VW\OH LQ FRQVFLRXV UHDFWLRQWRRUGHYHORSHGLQIXOODZDUHQHVVRIFXUUHQWQDWX UDOLVP ZLWKDQDHVWKHWLFZKLFKLVDSSURSULDWHWRDQKHLURI
5(;&5$03+251
(QJOLVKVSHDNLQJ WUDGLWLRQ ZLWK D PXOWLFXOWXUDO IXWXUH LQ D 6RXWKHDVW $VLDQ ORFDWLRQ « D FODVVLF FRPSDQ\ FDSDEOH RI GUDZLQJ IURP WKH EHVW DYDLODEOH DFDGHPLF DQG SURIHVVLRQDO UHVRXUFHVDQGGHYHORSLQJDYDOLG$XVWUDOLDQFRQWULEXWLRQWR ZRUOGWKHDWUH 7KH FRPSDQ\ ZDV QHYHU VHW XS &UDPSKRUQ KDYLQJ VSHQW FORVH WR WZR GHFDGHV VWUXJJOLQJ DJDLQVW D WLGH RI WKHDWULFDO FRQVHUYDWLVP LQVWHDG HQUROOHG DV D VWXGHQW DW WKH $XVWUDOLDQ )LOP 7HOHYLVLRQ DQG 5DGLR6FKRRO SXUVXLQJKLVORYHRIFLQHPDLQVWHDG &UDPSKRUQ·VZDVDFDUHHUFKDUDFWHULVHGE\VXVWDLQHGDWWHPSWVWR HVWDEOLVKDYLWDO QHZWKHDWUHZLWKLQZKDWKHVDZDVDQRSSUHVVLYHO\ FRQVHUYDWLYH DQWLLQWHOOHFWXDO DQG LQVWLWXWLRQDOO\ XQVXSSRUWLYH PLOLHX ,Q &UDPSKRUQWRRNVWRFNRIWKHVWDWHRISOD\LQORFDO WKHDWUH ZULWLQJ RI WKH ¶IUHHIRUDOO FRPPHUFLDO VWUXJJOH ZLWK QR VHFXULW\RIDQ\NLQG QRRSSRUWXQLW\IRUOHDUQLQJ· 1RRQHKHUHLVH[SHULPHQWLQJZLWKDFWLQJ«>D@QDWLRQDV SROLWLFDOO\ DQG VRFLDOO\ DSDWKHWLF DV ZH DUH LV XQOLNHO\ WR KDYH DQ\WKLQJ VHULRXV WR VD\ LQ D WKHDWUH 8QWLO WKHDWUH KDV VRPHWKLQJVHULRXVWRVD\ RUDGLVWLQFWLYHVWDWHPHQWWRPDNH ² WKDW LV XQWLO LW GHPDQGV WR EH WDNHQ VHULRXVO\ ² LW ZLOO UHPDLQDZLWKHULQJPLVWOHWRHRQRXUJXPWUHHFXOWXUH $V&UDPSKRUQREVHUYHG¶LQ$XVWUDOLD WKH¶¶QHZHVW·· WKHDWUHFRPHV IURPRYHUVHDV«LWEHJLQVDQGHQGVZLWKWKH7LPH UHYLHZ /LNHVH[ HGXFDWHG FKLOGUHQ ZH NQRZ LW DOO ZLWKRXW H[SHULHQFH· 7KH RQO\ FRXQWHUPRGHORIWKHDWUHDYDLODEOHLQ$XVWUDOLDDWWKHWLPHZDVWKDW RI WKH 0HOERXUQH 7KHDWUH &RPSDQ\ ZKHUH *HRUJH 2JLOYLH ² D VWXGHQW RI /HFRT DQG DQ DFWLQJ WXWRU XQGHU 3HWHU %URRN DW WKH 5R\DO6KDNHVSHDUH&RPSDQ\LQWKHHDUO\ V²ZDVDEOHWRPDLQ WDLQDQHQVHPEOHRI ¶WZHQW\RUVRDFWRUV· HQJDJHGLQGDLO\FODVVHVDQG ZRUNLQJLQDQHQYLURQPHQWLQZKLFK¶DFWRUVFDQGHYHORSDQGGLUHF WRUVH[SHULPHQW· 5DWKHUWKDQ\LHOGLQJWRWKHWHPSWDWLRQVLPSO\WRVWRSZDVWLQJKLV WLPH ZULWLQJ DERXW VXFK D GHVRODWH WKHDWULFDO FXOWXUH &UDPSKRUQ LQVWHDGFRPSRVHGDPDQLIHVWRIRUDQHZ$XVWUDOLDQWKHDWUH ,WDNHWKHDWUH·VXQLTXHDVVHWWREHWKHDFWRU·VSK\VLFDOSUHV HQFH DQG,WDNHLWVPDMRUPLVGLUHFWLRQWREHWKHIRLVWLQJRI SV\FKRORJLFDO UHDOLVP ZKDW $UWDXG FDOOV ¶VWRU\WHOOLQJ SV\FKRORJ\· RQKLP
5(;&5$03+251
$OWHUQDWLYHV WR WKH VFOHURWLF LQVXODULW\ RI HPHUJHQW $XVWUDOLDQ QDWXUDOLVP ² WKH ¶JXPWUHH FXOWXUH· ² ZRXOG UHTXLUH ¶DQ HODVWLF WUDLQLQJ VFKHPH DV D EDVLV IRU DUGXRXV UHVHDUFK DQG H[SHULPHQW UHVXOWLQJLQDQRULJLQDOVW\OLVWLFFRPPXQLFDWLRQRIDQXQIRUHVHHDEOH QDWXUH EXW UHOHYDQW WR LWV $XVWUDOLDQ HQYLURQPHQW LQ WKH ZD\ WKDW VD\ *URWRVNL·V>VLF@LVWR3RODQG· &UDPSKRUQ·VZDVWREHDQLQGLJH QRXV $XVWUDOLDQ WKHDWUH EXW RQH EDVHG XSRQ WKH UHYROXWLRQDU\ WUDLQLQJ SUDFWLFHV DQG HQVHPEOH LGHDV RI *URWRZVNL DQG &RSHDX WKH ZULWLQJV RI $UWDXG DQG D UHSHUWRLUH EXLOW RQ D EDODQFH RI GHYLVHG ZRUN DQG (XURSHDQ FODVVLFDO WH[WV ² LQ SDUWLFXODU WKRVH RI 6KDNHVSHDUH DQG WKH )UHQFK QHRFODVVLFLVWV ZKLFK KH WUDQVODWHG IRU KLPVHOI 7RZDUGV WKH HQG RI &UDPSKRUQ DQG D JURXS RI UHFHQWO\ JUDGXDWHG DFWRUV JRW KROG RI D SKRWRFRS\ RI WKH MXVWSXEOLVKHG (QJOLVK WUDQVODWLRQ RI *URWRZVNL·V VHPLQDO WH[W 7RZDUGV $ 3RRU 7KHDWUH 6SXUUHG E\ WKHLU FROOHFWLYH GLVWDVWH IRU WKH SURIHVVLRQDO DQG FRPPHUFLDO WKHDWUH WKH JURXS ZRUNHG V\VWHPDWLFDOO\ WKURXJK *URWRZVNL·V H[HUFLVHV ,Q WKLV FRUH JURXS MRLQHG ZLWK WKUHH RWKHU JUDGXDWHV WR IRUP D FRPSDQ\ IRU D VHDVRQ RI SURGXFWLRQV DW WKH -DQH 6WUHHW 7KHDWUH *HQHURXV IXQGLQJ IURP WKH $XVWUDOLDQ &RXQFLOIRUWKH$UWVDOORZHGWKHFRPSDQ\RIVHYHQDFWRUVDQGWKUHH GLUHFWRUV WR ZRUN DV DQ HQVHPEOH ZLWK FRPPLVVLRQHG ZULWHUV RQ QHZ WH[WV 5HKHDUVDOV VWDUWHG LQ 0DUFK ZLWK HLJKW ZHHNV RI IXOOWLPHFODVVHVLQ\RJD PRYHPHQW PLPH VLQJLQJ YRLFHZRUNDQG ¶%UHFKWLDQ· DFWLQJ 7KHFODVVHVFRQWLQXHGIRUDIXUWKHUIRXUZHHNVDV WKH FRPSDQ\ PRYHG LQWR LPSURYLVDWLRQV ZLWK SUHOLPLQDU\ VFULSW LGHDV (DFKRIWKHVHDVRQ·VWKUHHSURGXFWLRQVZDVWKHQUHKHDUVHGIXOO WLPHIRUWZRZHHNV &UDPSKRUQGLUHFWHGWKHVHDVRQ·VVHFRQGZRUN D PHGLWDWLRQRQWKHPHVRIH[SORUDWLRQWLWOHG0LOHV$ZD\ 7KH FRPSDQ\ ZRUNHG ZLWK WKH *URWRZVNLDQ PRGHO GHYHORSLQJ IURP D UDQJHRIWXPEOLQJDQGIDOOLQJH[HUFLVHVDSK\VLFDOODQJXDJHRI IOLJKW IORZ DQG FRQWLQXRXV PRYHPHQW JHQHUDWLQJ LQ WXUQ D SHUFXVVLYH SHUIRUPDQFH UK\WKP 7KLV ZDV DXJPHQWHG E\ D VHULHV RI WH[WV FRQWULEXWHGE\:LOO\
5(;&5$03+251
IURP ¶+RPH %DVH· 7KHLU MRXUQH\ ZDV UHQGHUHG DV D FORFNZLVH UXQQLQJDURXQGWKHFHQWUDOPDWV 7KHDFWRUVUDQ WLOO WKHLU IHHW EOLVWHUHG DQG EOHG« 7KHLU UXQQLQJ YLEUDWHV WKH EXLOGLQJ JLYLQJ D FRQVWDQW SHUFXVVLYH DFFRPSDQLPHQW WRVSHHFKLQZKLFKWKHZRUGVDUHRIWHQMXVWVRXQGV«WKH SHUIRUPHUV WHVW WKH OLPLWV RI KXPDQ HQGXUDQFH 7KH\ JR EH\RQG VSHHG EH\RQG GHDWK DQG LQ >D VHFWLRQ WLWOHG@ ¶6XSHUVH[· LQ FRXQWOHVV ERXWV RI ORYHPDNLQJ EH\RQG SOHD VXUH 7KHOLPLWDWLRQVRIWKHLUIOHVKDUHOHIWEHKLQG 2QH UHYLHZHU VXJJHVWHG WKDW¶*URWRZVNL IURP PLOHV DZD\· PLJKW KDYH EHHQ D PRUH DSSURSULDWH WLWOH 7KH $XVWUDOLDQ -XO\ ²FHUWDLQO\WKHZRUNFRQWUDVWHGPDUNHGO\ZLWKWKHWDONKHDY\ QDWXUDOLVWLF$XVWUDOLDQQHVVGRPLQDWLQJORFDOVWDJHV 0RUH LPSRUWDQWO\ WKH ZKROH H[SHULHQFH VXJJHVWHG D VXVWDLQDEOH PRGHO IRU LQQRYDWLYH DFWRUEDVHG ZRUN &UDPSKRUQ DQG WKH FRUH PHPEHUVRIWKHFRPSDQ\DSSOLHGWRWKH$XVWUDOLDQ&RXQFLOIRUWKH $UWV XQGHU WKH QDPH ¶3HUIRUPDQFH 6\QGLFDWH· WKH ILUVW RI &UDPSKRUQ·V IRXU DWWHPSWV WR FUHDWH HQVHPEOH FRPSDQLHV ZKLFK ZRXOG SURYLGH ILQDQFLDO DQG DUWLVWLF VWDELOLW\ IRU DFWRUV ZULWHUV DQG GLUHFWRUV 3HUIRUPDQFH 6\QGLFDWH LV EHVW UHPHPEHUHG IRU 7KH 7HPSHVW VHWRQDIODWVWDJH VXUURXQGHGE\WKHDXGLHQFH ZLWK WKHFDVWVLWWLQJDURXQGWKHHGJHVSURYLGLQJPXVLFDODFFRPSDQLPHQW ¶$VLDQ LQ PXVLF LQ ORRN « WKH SHUIRUPDQFH DVWRQLVKHG XWWHUO\· ZURWHRQHUHYLHZHU (DFK JHVWXUH RI ILQJHU RI IRRW RI ERG\ ZDV PDQQHUHG« 'UXPV UHYHUEHUDWHG IOXWHV SOD\HG EHOOV DQG ILQJHU F\PEDOV FODQJHGDQGWLQNOHG DGXOFLPHU JXLWDUDQGKDUPRQLXPOHQW SODJHQF\ 7KHWHPSHVWEURNH V\PEROL]HGE\WKXQGHURQWKH GUXPV DQG E\ OLJKWQLQJ ² EDQQHUV RI ZKLWH FORWK ]LJ ]DJJLQJWKURXJKWKHDLU« 7KHLVODQG>ZDV@PDUNHGRXWE\ D>FKDONHG@PDJLFLDQ·VFLUFOH ,Q WKH FRXUVH RI SUHSDULQJ DQG WRXULQJ 7KH 7HPSHVW WKH HQVHPEOH GLVFRYHUHG¶D QHZ XQLI\LQJ LQWHUHVW LQ WKH GHYHORSPHQW RI PXVLFDO VNLOOV«OHDUQLQJWRSOD\DQHZLQVWUXPHQWDQGLPSURYLVLQJWRJHWKHU ZHUHVHHQDVDSDUDOOHOWRWKHDFWRU·VVNLOO· $W WKH VDPH WLPH KRZHYHU WKH HQVHPEOHDVFRPPXQH LGHDO ZDV IUD\LQJ WKH ODFN RI D VHFXUH UHKHDUVDO DQG SHUIRUPDQFH YHQXH WKH SUHVVXUHVRIWRXULQJ WKHODFNRIVXVWDLQHGIXQGLQJ DQGGUXJXVHZHUH
5(;&5$03+251
WDNLQJ WKHLU WROO $ GHFLVLRQ WR DFFHSW D UHVLGHQF\ DW 6W 0DUWLQ·V 7KHDWUHLQ0HOERXUQHIRUVL[PRQWKVLQ SURYHGGLVDVWURXV WKH 6\QGLFDWH IRXQG LWVHOI DW ORJJHUKHDGV ZLWK D PDQDJHPHQW IHDUIXO RI ORVLQJLWVFRQVHUYDWLYHVXEVFULEHUV SUHVVXULQJWKHFRPSDQ\WRGHOLYHU FRPPHUFLDOO\ YLDEOH SURGXFWLRQV DQG XQZLOOLQJ WR SURYLGH WKH SURPLVHGILQDQFLDOUHVRXUFHVWRVXVWDLQFODVVZRUN %\ WKHH[SHUL PHQWZDVRYHU %\WKHODWH V&UDPSKRUQZDVPRYLQJLQFUHDVLQJO\ WRZDUGV DFDGHPLF FLUFOHV ZLWKLQ ZKLFK KH QRWHG ¶, VHHP WR EH D UDIILVK H[SHULPHQW· DOWKRXJK¶LQ SUDFWLFDO FLUFOHV , JHW EUDQGHG DV DQ DFDGHPLF· $QRWKHUDWWHPSWWRHVWDEOLVKDQHQVHPEOHFRPSDQ\²WKH 3DULV7KHDWUH ZLWK-LP 6KDUPDQ ²IDLOHG DQG&UDPSKRUQZHQWWR ZRUNDVDIUHHODQFHGLUHFWRUIRUPDMRUVXEVLGLVHGFRPSDQLHV ,Q &UDPSKRUQUHFHLYHGDPDMRUJUDQWWRZRUNZLWKDJURXS RIDFWRUVIRUVL[PRQWKVRQ6KDNHVSHDUH¶$6KDNHVSHDUH&RPSDQ\· ZDV &UDPSKRUQ·VH[SHULPHQWZLWKZKDWKHFDOOHGDQ¶DQWLLQWHUSUHWDWLRQDO IRFXV· DQG DQ¶XQLPSRVHG GLUHFWRULDO VW\OH· 6DODULHG IRU WZHQW\IRXU ZHHNV QLQH DFWRUV ZHUH DEOH WR ZLWKGUDZ IURP WKH EXV\ URXWLQH RI QRUPDOGHPDQGVPDGHRQWKHPDQGWRSDUWLFLSDWHLQDQDGPLQLVWUDWLYH DQGDUWLVWLF¶GHPRFUDF\· ,QPDQ\ZD\VWKHSURMHFWZDVDFULWLTXHRIWKH GLUHFWRU DV DXWHXU $ IHZ \HDUV ODWHU &UDPSKRUQ TXRWHG &RSHDX WR H[SODLQKLVDSSURDFK 1RWKLQJLVPRUHIULJKWHQLQJWKDQDGLUHFWRUZKRKDVLGHDV 7KH GLUHFWRU·V UROH LV QRW WR KDYH LGHDV EXW WR XQGHUVWDQG DQGFRPPXQLFDWHWKRVHRIWKHDXWKRU QRWWRIRUFHWKHPRU UHGXFHWKHPWRQRWKLQJEXWWRWUDQVODWHWKHPIDLWKIXOO\LQWR WKHODQJXDJHRIWKHDWUH« :KDWLVIRURWKHUVMXVWDVWULQJRI ZRUGV EODFNRQZKLWH«IRUWKHGLUHFWRULVVWUDLJKWDZD\D ZRUOGRIIRUPV VRXQGV FRORXUDQGPRYHPHQW 7KH\DUHQ·W LQYHQWHG WKH\DUHGLVFRYHUHG $ 6KDNHVSHDUH &RPSDQ\ H[SHULPHQWHG ZLWK RSHQ UHKHDUVDOV FURVVDQGFRQWUDU\WRW\SHFDVWLQJ DULJRURXVO\DFDGHPLFDSSURDFK WRWKHWH[WV²7ZR*HQWOHPHQRI9HURQD DQG0HDVXUHIRU0HDVXUH ²DQG YDULRXVIRUPVRIGRFXPHQWDWLRQRIWKHSURFHVV $V 5HVLGHQW 'LUHFWRU DW WKH 3OD\ER[ &RPSDQ\ LQ 0HOERXUQH ZKHUH RQFH DJDLQ KH FRQIURQWHG WKH OLPLWV RI H[SHULPHQWDWLRQ ZLWKLQ D PDMRU FRPSDQ\ PLOLHX &UDPSKRUQ GHYHORSHG WKH $FWRUV· 'HYHORSPHQW 6WUHDP D FRUH FRPSDQ\ RI DFWRUV ZRUNLQJ RQ FODVVLF WH[WV DQG VWUXFWXUHG DURXQG QLQH VWDWHPHQWV RI SULQFLSOH UDQJLQJ IURP DQ DVVHUWLRQ RI¶HDFK LQGLYLGXDO·V ULJKW WR EH KHUH· WKURXJK¶D EHOLHI LQ WKHDWUH DV D VSLULWXDO SROLWLFDO VRFLDO PLFURFRVP· WR WKH
5(;&5$03+251
GHVLUHWR¶EXLOGDQHZDHVWKHWLFIURPRXUGLIIHUHQFHV· 7KHVHLGHDOV ZHUH DFFRPSDQLHG E\ SUDFWLFDO H[HUFLVHV ZKLFK IRUPHG WKH EDVLV RI WKH HQVHPEOH·V GDLO\ SUDFWLFH DQG HODERUDWH VFKHPDWLVDWLRQV RI UHKHDUVDO SURFHVVHV D IRXUZHHN EORFN IRFXVHG RQ VFULSW DQDO\VLV ² &UDPSKRUQFDOOHGWKLVWKH¶4XHVWLRQ· SKDVH²IROORZHGE\DVL[ZHHN UHKHDUVDO¶$QVZHU· SKDVH $W WKH FRUH RI &UDPSKRUQ·V VFKHPD LV WKLV IRUPXODWLRQRIWKHZRUNRIWKHDWUH 3KLORVRSKLFDO )UDPH $ EHOLHI LQ WKH UHOHYDQFH RI WKH ZRUN WR WKH DXGLHQFH«WREH WKHPHDQLQJQRWWRGHPRQVWUDWHLW 3UDFWLFDO$LPV 7RDOORZWKHDXGLHQFHWRPDNHLWVRZQFRQQHFWLRQV WRHQJDJHDQDXGLHQFH WRHQGRZWKHDXGLHQFHZLWKWKHSRZHU RI GLVFHUQPHQW ZLWK ZLW DQG NQRZOHGJH WR VWLPXODWH WKH FLUFXODUQDWXUHRIWKHFRPPXQLFDWLRQ 3UDFWLFDO ([HUFLVHV (DFK DFWRU KDV ¶D OLQH· ² D VSLQH VFHQDULR D PHDQLQJ (DFK¶OLQH· FRQYHUJHVLQDXQLILHGSUHVHQWDWLRQ ZLWKDQ RYHUDOO PHDQLQJ RQ ZKLFK DOO DJUHH « (YHU\ DFWLRQ LV QHFHV VDU\ :H DUH DZDUH RI WKH DXGLHQFHVWDJH UHODWLRQVKLS DQG ZH GHYHORSWKHSHUIRUPDQFHLQUHODWLRQWRWKHVSHFLILFGHPDQGVRI WKHWKHDWUHVSDFHEHLQJXVHG 2QFH DJDLQ FRPPHUFLDO SUHVVXUHV RYHUZKHOPHG HYHQ PRGHVW DPELWLRQ WKH 3OD\ER[ $FWRUV·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·VFXOWLYDWLRQRIDXWRQRP\RQWKHSDUWRIDFWRUV GLGQRWDSSHDOWRHYHU\RQH
5(;&5$03+251
ZKHQZRUNLQJZLWKDFWRUVXQDEOHRUXQZLOOLQJWRVWHSRXW RI WKH URXWLQHV RI PDLQVWUHDP ZRUN KH FRXOG EH FUXHO LQ UHIXVLQJWRDFNQRZOHGJHRUWRZRUNZLWKWKHLUFRQIXVLRQ 0LQFKLQWRQQRWHV&UDPSKRUQ·V¶LQDELOLW\RUXQZLOOLQJQHVVWRQHJR WLDWH· ZKHQWHQVLRQDURVHEHWZHHQKLVRZQXQGHUVWDQGLQJRIDSOD\ DQG WKH UHVXOWV RI KLV FRPPLWPHQW WR DOORZLQJ DFWRUV WR¶ILQG DQG H[SUHVV WKHLU RZQ DJHQGDV DQG QHHGV· LQ UHVSRQVH WR WKDW SOD\ ¶&UDPSKRUQ· KHREVHUYHG ¶GLGQRWOLNHFRQIOLFW DQGVHHPHGXQDEOH WRGHDOZLWKLWH[SOLFLWO\²DVDFROOHDJXHSXWLW KHRIWHQ¶¶MXVWGLVDS SHDUHG·· ·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·V OHJDF\ KDV LQ QR VPDOO ZD\ VRZHG WKH VHHGV RI SRVVLELOLW\ IRU ZKDW WKHDWUHLQ$XVWUDOLDPLJKW RQHGD\ EHFRPH 1RWHV 0LQFKLQWRQ 0DUN ¶5H[ &UDPSKRUQ DQG ¶¶0HDVXUH IRU 0HDVXUH·· ²· LQ *ROGHU -RKQ DQG 0DGHODLQH 5LFKDUG HGV 2 %UDYH 1HZ :RUOG 7ZR &HQWXULHV RI 6KDNHSHDUH RQ WKH $XVWUDOLDQ 6WDJH 6\GQH\ &XUUHQF\3UHVV ,ELG &UDPSKRUQ 5¶3URIHVVLRQDO6WRFNWDNLQJ· DWWDFKPHQWWRDQDSSOLFDWLRQ WRWKH7KHDWUH%RDUGRIWKH$XVWUDOLD&RXQFLO LQ¶3DSHUVRI5H[5R\ &UDPSKRUQ· %R[ ILOH6 0XFKRIWKHPDWHULDOXVHGLQWKLVFKDSWHU KDVEHHQWDNHQGLUHFWO\IURP&UDPSKRUQ·VSHUVRQDOSDSHUV DUFKLYHGDW WKH 'HSDUWPHQW RI 3HUIRUPDQFH 6WXGLHV DW WKH 8QLYHUVLW\ RI 6\GQH\ &UDPSKRUQSXEOLVKHGKLVUHYLHZVLQ7KH%XOOHWLQ DQG6XQGD\$XVWUDOLDQ DV5H[&UDPSKRUQH GURSSLQJWKH¶H· DSDUHQW·VDIIHFWDWLRQ LQWKHPLG V &UDPSKRUQH 5 ¶,GHDOV DQG $FWXDOLWLHV· 7KH %XOOHWLQ 1RYHPEHU &UDPSKRUQH 5 ¶$ :LWKHULQJ 0LVWOHWRH RQ RXU *XP7UHH &XOWXUH· 7KH%XOOHWLQ -DQXDU\ &UDPSKRUQH ¶7KHDWUHLQ6\GQH\· 7KH%XOOHWLQ -DQXDU\ &UDPSKRUQH &UDPSKRUQH ,ELG
52%(57:,/621
6SLQNV .LP ¶ 0LOHV $ZD\· $VSHFW $UW DQG /LWHUDWXUH 1RV ² 7KHDWUHLQ$XVWUDOLD ² ,ELG )UL]HOO +HOHQ ¶$ 7HPSHVW LV %UHZLQJ ² 2Q DQG 2II 6WDJH· 6\GQH\0RUQLQJ+HUDOG $XJXVW &UDPSKRUQ 5 $SSOLFDWLRQ WR WKH $XVWUDOLDQ &RXQFLO IRU WKH $UWV &UDPSKRUQ 5 $GGUHVV WR WKH ,QDXJXUDO &RQIHUHQFH RI WKH $XVWUDOLDQ 7KHDWUH 6WXGLHV &HQWUH 8QLYHUVLW\ RI 1HZ 6RXWK :DOHV $XJXVW &UDPSKRUQ 5 $SSOLFDWLRQ WR WKH $XVWUDOLD &RXQFLO TXRWLQJ .LP 6SLQNV· WUDQVODWLRQ RI &RSHDX -DFTXHV ¶8QH UpQRYDWLRQ GUDPDWLTXH HVWHOOH SRVVLEOH"· LQ 5HJLVWUHV , $SSHOV 3DULV (GLWLRQV *DOOLPDUG ² 3OD\ER[$FWRUV'HYHORSPHQW6WUHDPGRFXPHQW ,ELG &UDPSKRUQ 0LQFKLQWRQ 0DUN ¶7KH 5LJKW DQG 2QO\ 'LUHFWLRQ 5H[ &UDPSKRUQ 6KDNHVSHDUH DQG WKH $FWRUV· 'HYHORSPHQW 6WUHDP· $XVWUDODVLDQ'UDPD6WXGLHV ,ELG
)XUWKHUUHDGLQJ &UDPSKRUQ 5 ¶/·,OOXVLRQ &RPLTXH WR 7KHDWULFDO ,OOXVLRQ 7H[WXDO &KDQJHVIRU3HUIRUPDQFH· LQ0F$XOH\ * HG )URP3DJHWR6WDJH /·,OOX VLRQ &RPLTXH 6\GQH\ 8QLYHUVLW\ RI 6\GQH\ 7KHDWUH 6WXGLHV 6HUYLFHV 8QLW ² 0F$XOH\ * 6SDFHLQ3HUIRUPDQFH 0DNLQJ0HDQLQJLQWKH7KHDWUH $QQ $UERU 8QLYHUVLW\RI0LFKLJDQ3UHVV 6SLQNV . ¶1RWHVIURPWKH&DVHERRN· LQ0F$XOH\ * HG )URP3DJH WR 6WDJH /·,OOXVLRQ &RPLTXH 6\GQH\ 8QLYHUVLW\ RI 6\GQH\ 7KHDWUH 6WXGLHV6HUYLFHV8QLW ² ,$10$;:(//
52%(57:,/621 ² 1RW PDQ\ GLUHFWRUV KDYH GRQH DV PXFK DV 5REHUW :LOVRQ WR GLVSODFH ODQJXDJH IURP WKH FHQWUH RI WKH WKHDWUH DFW ,Q :LOVRQ·V ZRUN WKHVFULSWLVRIWHQDEVHQWDQGWKHSHUIRUPDQFHLVVWUXFWXUHG DURXQG WKH PRYHPHQW RI ERGLHV LQ D VSDFH :LOVRQ·V GUDPDV DUH OLNHPRELOHVFXOSWXUHV FRPSRVLWLRQVLQVRXQGDQGFRORXU VLOHQFH DQG OLJKW WKDW KDYH QR¶PHDQLQJ· DSDUW IURP WKHLU FRQFUHWH SUHV HQFH
52%(57:,/621
*R>WRP\SHUIRUPDQFHV@OLNH\RXZRXOGWRDPXVHXP OLNH \RX ZRXOG ORRN DW D SDLQWLQJ $SSUHFLDWH WKH FRORU RI WKH DSSOH WKH OLQH RI WKH GUHVV WKH JORZ RI WKH OLJKW«
52%(57:,/621
,Q D 5REHUW :LOVRQ SURGXFWLRQ OLJKW LV¶WKH PRVW LPSRUWDQW DFWRU RQVWDJH· LELG 7KHUHGHILQLWLRQRIVSDFHDVDFRQVHTXHQFHRI DOWHUHGOLJKWLQJLVDYLWDOIUDFWLRQRIWKHYDOXHRIWKHGUDPD :DOOVRI OLJKWXSVWDJHFUHDWHVLOKRXHWWHV WKHLQWHUSOD\RI\HOORZDQGEOXHOLJKW FUHDWHVYDU\LQJGHJUHHVRIWKUHHGLPHQVLRQDOLW\ VLGHOLJKWVHPSKDVLVH WKHODWHUDOPRYHPHQWRIERGLHV 'LIIHUHQWSDUWVRIDERG\DUHOLWZLWK GLIIHUHQW OLJKWV VR DV WR VFXOSW WKH DFWRU·V ILJXUH DV LW PRYHV DFURVV VSDFH )RU:KHQ:H'HDG$ZDNHQ :LOVRQXVHGVL[W\KRXUVRI WHFKQLFDO UHKHDUVDO :LOVRQ·V SURGXFWLRQ 4XDUWHW KDG OLJKWLQJFXHVVSUHDGRYHUQLQHW\PLQXWHV +HVSHQWWZRZKROHGD\V OLJKWLQJ WKH SURORJXH DQG LV UXPRXUHG WR KDYH VSHQW WKUHH KRXUV OLJKWLQJRQHKDQGJHVWXUH 7KHWZRDVSHFWVRI :LOVRQ·VZRUNDVDWKHDWUHGLUHFWRUWKDWVKRXOG QRWE\ULJKWVGHULYHIURPKLVEDFNJURXQGDVDSDLQWHUDUHPRYHPHQW DQG WLPH
52%(57:,/621
/LIHDQG7LPHVRI6LJPXQG)UHXG DWRUWRLVHWRRNRYHUDQKRXU WRPDNHLWVZD\DFURVVWKHVWDJH ,Q WKH&,9,/ZDU6 DVROGLHUVSHQW WKH HQWLUH GXUDWLRQ RI WKH SHUIRUPDQFH WUDYHUVLQJ WKH VWDJH )RU :LOVRQ WKLV LV ¶127 LQ VORZ PRWLRQ LW·V LQ QDWXUDO WLPH 0RVW WKHDWUH GHDOV ZLWK VSHHGHGXS WLPH EXW , XVH WKH NLQG RI QDWXUDO WLPH LQ ZKLFK LW WDNHV WKH VXQ WR VHW D FORXG WR FKDQJH D GD\ WR GDZQ· 6K\HU [YL :LOVRQ·V DFWRUV WDNH TXLWH WKH RSSRVLWH YLHZ 6KHU\O 6XWWRQ ZKR ILUVW ZRUNHG ZLWK :LOVRQ RQ 'HDIPDQ *ODQFH UHFDOOV WKH SUREOHP RI ZRUNLQJ ZLWK D UDGLFDOO\ DOWHUHG SHUFHSWLRQRIWLPH ,W·VYHU\GLIILFXOW ,QJHQHUDO,WKLQNDQ\RQHFDQFRPHFORVH WRDSSUR[LPDWLQJILYHPLQXWHVRIUHDOWLPH
52%(57:,/621
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·VZRUNLVKLVQHHGWRGHVWDELOLVHODQJXDJHE\ EUHDNLQJXSVHTXHQFHVRIZRUGVDQGFUHDWLQJFRQWUDGLFWLRQVEHWZHHQ OHYHOVRIVSHHFKDQGDFWLRQ ,Q(LQVWHLQRQWKH%HDFK DZRPDQFUDZOHG DFURVV D EHG DQG GHOLYHUHG D VSHHFK WKDW ZDV UHSHDWHG WLPHV $ QXPEHU RI YRLFHV ZHUH KHDUG VRPH VLQJLQJ ¶R· VRPH UHSHDWLQJ ¶ · VRPH DVNLQJ ¶:KDW LV LW"· 2FFDVLRQDOO\ D YRLFH VFUHDPHG ¶1R· 7KH PXVLF ZDV LQWHUVSHUVHG ZLWK SKUDVHV WKDW ZHUH VSRNHQ RYHUDQGRYHUVRWKDWWKH\ORVWDOOVHPEODQFHRIPHDQLQJ %XWDFRXUWZKHUHLWFRXOGKDSSHQ 6RZKHQ'DYLG&DVVLG\ WHOOV \RX DOO RI \RX WR JR RQ JHW JRLQJ JHW JRLQJ 6R WKLV RQHLQOLNHRQ:$%&1HZ
$1$72/<9$6,/<(9
DQGWKHQWKDW'RQRYDQLVRQIURPWR ZHGRQRWTXHVWLRQ WKHDELOLW\RIODQJXDJHDFFXUDWHO\WRGHVFULEHWKHZRUOGEXWQRWHWKDW ZHDUHLQWKHSUHVHQFHRIZRUNWKDWGHOLJKWVLQP\VWLI\LQJWKH VSHF WDWRU +DYLQJ VDLG WKDW RQH KDV WR FRQFHGH WKDW :LOVRQ·V XQFRPSUR PLVLQJ VWDQFH RQ WKH LVVXH RI SXUH EHLQJ KDV SURGXFHG D IRUP RI WKHDWUH WKDW LV DV UDUH DV LW LV VXEOLPH :LOVRQ·V ILHOGV RI FRQWUDVWLQJ LPDJHV KLV FROODJHV RI VHQVRU\ LPSUHVVLRQV GUDZLQJ RQ D VWDUWOLQJO\ GLYHUVH IXQG RI H[SHULHQFH DUH XQIRUJHWWDEOH 7KH\ DOWHUHG WKH FRXUVHRIWZHQWLHWKFHQWXU\WKHDWUHVRSURIRXQGO\WKDWSURGXFWLRQV OHVV FU\SWLF OHVV VLQJXODUO\ HQLJPDWLF VHHP OLNH UHOLFV RI D SUHYLRXV DJH 1RWHV
:LOVRQLQ'HOJDGR 0DULD0 DQG+HULWDJH 3DXO HGV ,Q&RQWDFW :LWK WKH *RGV" 'LUHFWRUV 7DON 7KHDWUH 0DQFKHVWHU DQG 1HZ
)XUWKHUUHDGLQJ %UHFKW 6 7KH7KHDWUHRI9LVLRQV 5REHUW:LOVRQ 1HZ
$1$72/<9$6,/<(9 ² %RUQLQ5RVWRYRQ'RQ 9DVLO\HYWUDLQHGDVDGLUHFWRUXQGHU$QGUHL 3RSRY DQG 0DULD .QHEHO ZKR KDG EHHQ D SXSLO RI 0LNKDLO &KHNKRYDQG6WDQLVODYVN\ $IWHUKLVJUDGXDWLRQ KHZDVLQYLWHGWR ZRUN DW WKH 0RVFRZ $UW 7KHDWUH ZKHUH KH PDGH KLV GHEXW ZLWK 2VZDOG=DKUDGQLN·V6RORIRUD6WULNLQJ&ORFN 7KHSURGXFWLRQ LQYROYHGWKH¶ROGJHQHUDWLRQ· RIWKH$UW7KHDWUH·VDFWRUV +HJUDGX DOO\ GHSDUWHG IURP WKH SV\FKRORJLFDO UHDOLVP WKDW KDG GRPLQDWHG 6RYLHW WKHDWUH IRU PXFK RI WKH WZHQWLHWK FHQWXU\ ZKLFK DVVXPHG WKDW DFWRUV HPRWLRQDOO\ H[SHULHQFHG WKH UROH WKH\ SOD\HG
$1$72/<9$6,/<(9
SHUH]KLYDQLH ILOOHG LW ZLWK WKH NQRZOHGJH RI WKH ¶JLYHQ FLUFXP VWDQFHV· DQG WKHLU RZQ DIIHFWLYH PHPRU\ DQG IRXQG D FKDUDFWHU·V PRWLYDWLRQLQDSUHFLSLWDWLQJHYHQW 2YHUWKHSDVWWKLUW\\HDUV9DVLO\HYKDVVKHGWKHVHEDVLFSULQFLSOHV DQGPRYHGWRZDUGDWKHDWUHEDVHGRQLPSURYLVDWLRQ XVLQJWH[WVDQG GHYHORSLQJ LPSURYLVDWLRQ ZLWKLQ ZKDW KH FDOOV WKHLU ¶ULJLG VWUXF WXUHV· 7KH SHUVRQDOLW\ RI WKH DFWRU LV HIIDFHG EHKLQG WKH UROH 7KH DFWRUGRHVQRWFUHDWHDSV\FKRORJLFDOO\DQGSK\VLFDOO\UHDOFKDUDFWHU E\ GUDZLQJ RQ KLVKHU DIIHFWLYH PHPRU\ RI WKH SDVW EXW ZRUNV WRZDUGV D SUHGHILQHG REMHFWLYH WDNLQJ WLPH RQ WKH SDWK OHDGLQJ WRZDUGV LW WR HQJDJH LQ SOD\IXO OXGLF H[SORUDWLRQV RI WKH VLWXDWLRQV WKDW DULVH 9DVLO\HY·V VHDUFK IRU D QHZ WKHDWUH GHYHORSHG LQ WKUHH GLVWLQFW SKDVHV H[SORUDWLRQ RI QHZ GUDPDWLF DQG WKHDWULFDO IRUPV ² H[SHULPHQWZLWKLPSURYLVDWLRQ ² DQGGHILQLWLRQ RID¶YHUEDO· WKHDWUH WRSUHVHQW +LV SURGXFWLRQRI*RUN\·V 9DVVD=KHOH]QRYD HVWDEOLVKHGWKH EDVLF FRQFHSW RI VSDFH IRU 9DVLO\HY·V WKHDWUH +H DQG WKH DUFKLWHFW DQG GHVLJQHU ,JRU 3RSRY FUHDWHG D VHW WKH ZDOOV DQG IXUQLWXUH RI ZKLFKQDUURZHGWKHVWDJH 7KHVSDFHRSHQHGRQO\DWWKHWRS ZKHUH DFDJHKROGLQJ3URNKRU·VEHORYHGSLJHRQVZDVVXVSHQGHG 3URNKRU·V GHDWKIURPDKHDUWDWWDFNZDVFDXVHGE\WKHIHDWKHUVRIKLVRZQELUGV EHLQJ WKURZQ DW KLP +H ZDV VXIIRFDWHG E\ ZKDW KH ORYHG PRVW ERWK OLWHUDOO\ DQG ILJXUDWLYHO\ ,Q 9DVLO\HY GLUHFWHG 9LNWRU 6ODYNLQ¶V $
$1$72/<9$6,/<(9
*RJRO·V 6HOHFWHG 3DVVDJHV IURP &RUUHVSRQGHQFH ZLWK )ULHQGV &KHNKRY·V SOD\V DQG 3XVKNLQ·V FRUUHVSRQGHQFH 2QH RI WKH FKDUDFWHUV 3HWXVKRN LQYLWHV VHYHUDO RI KLV FROOHDJXHV QHLJKERXUV DQG FKDQFH DFTXDLQWDQFHV IRU D ZHHNHQG WR D GDFKD $OO RI WKHP KDG OHG WKHLU RZQOLYHVZLWKRXWUHYHDOLQJWKHLUWUXHIHHOLQJVIRUHDFKRWKHU $IWHUD VHULHV RI H[FXUVLRQV LQWR WKH SDVW WULJJHUHG RII E\ OHWWHUV IRXQG LQ WKH DWWLF WKHLU WUDJLF LVRODWLRQ IURP HDFK RWKHU EHFRPHV DSSDUHQW 1HYHUWKHOHVV WKH\FRQWLQXHDVEHIRUH 9DVLO\HY·VSURGXFWLRQHOHYDWHG 6ODYNLQ·VIUDJPHQWDU\WH[WWRDVRSKLVWLFDWHGIRXUKRXUSHUIRUPDQFH ,WUHFUHDWHGWKHSDVWWKURXJKFRVWXPHVDQGSURSVVXFKDVWKHVWLFNV DQGKRRSVXVHGZKHQSOD\LQJFHUFHDXDQGWKHWUXQNIXOORIOHWWHUV ZKLFK WKH FKDUDFWHUV KDG GLVFRYHUHG LQ WKH GDFKD DQG ZKLFK DOVR FRQWDLQHGSRVVHVVLRQVRILWVSUHYLRXVRZQHUV &HUFHDX GHPRQVWUDWHG 9DVLO\HY·V ZRUN RQ OXGLF VWUXFWXUHV YHU\ ZHOO :LWKLQWKHIUDJPHQWDWLRQRIWKHGUDPDWLFWH[W WKHDEVHQFH RI DQ\ DSSDUHQW GUDPDWLF GHYHORSPHQW DQG WKH LQHUWLD RI WKH FKDUDF WHUV 9DVLO\HYGHYHORSHGDPHWKRGWKDWHQDEOHGWKHDFWRUVWRHQJDJH LQDVHULHVRIVNHWFKHV VKRUWJDPHVDQGVFHQHVZKLFK WDNHQWRJHWKHU IRUPHG DQ DHVWKHWLF XQLW\ +H ORFDWHG FHUWDLQ¶NQRWV· LQ WKH¶ULJLG VWUXFWXUHV· RI WKH WH[W GHILQLQJ WKHP DV PLQLREMHFWLYHV EHWZHHQ ZKLFKWKHDFWRUVZHUHIUHHWRLPSURYLVHDQG¶SOD\· :KHQ9DVLO\HYIRXQGHGKLVRZQWKHDWUH WKH6FKRRORI'UDPDWLF $UW LQ FHQVRUVKLS DQG EDQV RQ LPSURYLVDWLRQ QR ORQJHU H[LVWHG +LV SURGXFWLRQ RI 3LUDQGHOOR·V 6L[ &KDUDFWHUV LQ 6HDUFK RI DQ $XWKRU ZDVDQHZDFKLHYHPHQWLQKLVPHWKRGRILPSURYLVD WLRQ ZLWKLQ WKH SDUDPHWHUV RI IL[HG ¶ULJLG· WH[WXDO VWUXFWXUHV 6FHQHV ZHUH UHSHDWHG ZLWK YDULDWLRQV LQ WH[W DQG SHUIRUPDQFH WKH ODWWHUE\XVLQJGLIIHUHQWDFWRUV $YDULHW\RIVW\OHVDQGPRRGVHQWHUHG WKHSURGXFWLRQ PDNLQJLWLPSRVVLEOHWRSLQSRLQWUHDOLW\ ,Q DQG 9DVLO\HY H[SORUHG GLDORJLF VWUXFWXUHV LQ 'RVWRHYVN\·V QRYHOV 7KH 3RVVHVVHG DQG 7KH ,GLRW GHPRQVWUDWLQJ WKDW WKH ZRUG SUHFHGHV DFWLRQ DQG FDXVHV D UHVSRQVH RU HPRWLRQ LQ WKH FKDUDFWHU +H ZRUNHG ZLWK 3ODWR·V SKLORVRSKLFDO WUHDWLVHV VHDUFKLQJ IRU ZD\V RI H[SUHVVLQJ WKH LGHD FRQWDLQHG LQ D WH[W RU VSHHFK WKHIRUPDWLRQRILGHDVLQDFKDUDFWHU·VPLQG DQGWKHUHODWLRQ VKLSRIWKHVSHDNHUWRWKHLGHDFRQWDLQHGLQ3ODWR·VWH[W ,QRUGHUIRU WKHZRUGWRULQJWUXHUDWKHUWKDQEHDZHOOUHKHDUVHGDQGPHDQLQJ OHVVVRXQG KHUHTXLUHGDFWRUVWREHIUHHIURPDQ\SULRUNQRZOHGJHRU HPRWLRQ DQG WR DOORZ WKHLU UROHV WR GHYHORS RQ WKH EDVLV RI ZRUGV VSRNHQDQGZRUGVKHDUG 7KHDOOSRZHUIXOZRUGWULJJHUVDFWLRQ :LWK $PSKLWU\RQ DQG 7KH 6WRQH *XHVW 9DVLO\HY EHJDQWRGHSULYHWKHWH[WRILWVQDUUDWLYHIXQFWLRQDQGWRUHGXFHLW
$1$72/<9$6,/<(9
WR D SXUH VLJQ DQG VRXQG V\VWHP LQ RUGHU WR UHYHDO QHZ PHDQLQJV 7KLVSUDFWLFHHVWDEOLVKHGKLPDVWKHIRXQGHURIDQHZWKHDWUHZKLFK PD\EHFDOOHG¶YHUEDO· ¶FRQFHSWXDO· ¶PHWDSK\VLFDO· RU¶ULWXDO· WKHDWUH 9DVLO\HY·V DSSURDFK HVVHQWLDOO\ LQYHUWV 6WDQLVODYVN\·V¶V\VWHP·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·VYHUVH UHVRQDWHVLQDFKRSSHGDQGWUXQFDWHGPDQQHU 3KUDVHVDQGZRUGVDUH GHSULYHG RI WKHLU XVXDO LQWRQDWLRQ DQG VWUHVV SDWWHUQV ,Q HYHU\GD\ VSHHFK ZRUGVDUHFRQQHFWHGWRHDFKRWKHUWKURXJKDOLQHDULQWRQD WLRQ ZLWK D GURS DW WKH HQG RI WKH SKUDVH WR IRUP D QDUUDWLYH ,Q RUGHU WR GHVWUR\ WKH QDUUDWLYH LQWRQDWLRQ 9DVLO\HY KDV HDFK ZRUG SURQRXQFHGZLWKDGURSSLQJLQWRQDWLRQ ZKLFKOD\VEDUHWKHPHWD SK\VLFDO TXDOLW\ RI WKH ZRUG LWV ¶SXUH· PHDQLQJ $FFRUGLQJ WR 9DVLO\HY PRVWWH[WVDUHVXEPHUJHGLQOD\HUVRILQWHUSUHWDWLRQ DQGWKH LQWRQDWLRQWHOOVWKHVWRU\ FRYHULQJXSWKHUHDOPHDQLQJRIWKHZRUGV ,QWRQDWLRQWKXVEHFRPHVWKHFDUULHURILQIRUPDWLRQ ZKHUHDVZRUGV IRUPDQ\SRVWPRGHUQLVWZULWHUV KDYHEHFRPHWKHPHDQVIRUEHWUD\DO DQG SRZHU HYHQ ZHDSRQV WKDW KDYH WKH SRWHQWLDO WR GHVWUR\ 9DVLO\HY·V WHFKQLTXH RI UHFLWDWLRQ LV KLJKO\ XQXVXDO EXW LW DVVLVWV LQ XQFRYHULQJ WKH RULJLQDO RU¶SXUH· PHDQLQJ RI WKH ZRUG 7KH DFWRUV DUHQRWGULYHQE\WKHSDVW EXWDUHGUDZQWRZDUGVWKHVDPH SULQFLSDO HYHQWZKLFKZLOOKDSSHQ²WKHPXUGHURI0R]DUW²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¶VWRSVRQWKHURDG· NQRWV
$1$72/<9$6,/<(9
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·VDQG6DOLHUL·V GLQQHU 7KHLU GLDORJXH LQ WKH JODVV KRXVH DQG LQ WKH HPSW\ VSDFH SHUWDLQVWRPHWDSK\VLFDOLVVXHV DQGUHYHUEHUDWHVOLNHDVHULHV RIKDUG VRXQGV ODUJHO\ FRQVRQDQWEDVHG ZRUGV WKDW DUH WKURZQ OLNH DUURZV LQWR WKH HPSW\ VSDFH 9DVLO\HY MX[WDSRVHV WKLV ZD\ RI UHFLWLQJ WKH WH[W ZLWK WKH QDUUDWLYH GLVFRXUVH DQG SOD\IXOQHVV RI FRQYHUVDWLRQ KHOGLQWKHVSDFHWKDWILOOVZLWKIXUQLWXUH )RU 9DVLO\HY 0R]DUW DQG 6DOLHUL LV QRW D SV\FKRORJLFDO GUDPD WKDW H[SORUHVWKHUHDVRQDQGPRWLYHVIRU6DOLHUL·VFULPH EXWLVDPHWDSK\V LFDO GLVFRXUVH RQ WKH QDWXUH RI KDUPRQ\ 0R]DUW LV LQ KDUPRQ\ ZLWK WKHZRUOG +HPRYHVZLWKHDVHEHWZHHQKLJKDQGORZ RUGHUDQGFKDRV DQG LV DEOH WR FUHDWH KDUPRQ\ RXW RI WKH VXUURXQGLQJ FKDRV 6DOLHUL FDQQRWGRWKDW +HLVUHGXFHGWRLPPRELOLW\DQGXQDEOHWRFRPSRVH DIWHU 0R]DUW·V GHDWK +LV JHQLXV GHSHQGHG RQ 0R]DUW DQG E\ GHVWUR\LQJKLP 6DOLHULXSVHWWKHKDUPRQLRXVEDODQFHRIWKHLUFRH[LV WHQFH 9DVLO\HY·VUHDGLQJRIGUDPDWLFWH[WVDVWUHDWLVHVSURYLGHVDNH\IRU LQWHUSUHWLQJDQGVWDJLQJWKHGUDPDVRILGHDV 0RUHRYHU KLVPHWKRG RIWXUQLQJWH[WVLQWRQRQQDUUDWLYHKDVSURYHQWREHDXVHIXOWRROIRU WKHSURGXFWLRQRIFRQWHPSRUDU\SOD\VZKLFKDUHGLVWLQJXLVKHGIURP WUDGLWLRQDO RQHV E\ WKHLU IUDJPHQWHG VWUXFWXUH DQG WKHLU ODFN RI D OLQHDUSORWOLQHRUQDUUDWLYH 1RWHV
6HH IRU WKHVH SRLQWV *URWRZVNL - ¶$FWRU·V 7UDLQLQJ · LQ 7RZDUGVD3RRU7KHDWUH /RQGRQ 0HWKXHQ ² *URWRZVNLGLIIHUHQ WLDWHVEHWZHHQKHDGYRLFH PRXWKYRLFH RFFLSLWDOYRLFH FKHVWYRLFHDQG EHOO\YRLFH DQGWKHVHFRQFHSWVZHUHDGRSWHGE\9DVLO\HY ZKRZRUNHG ZLWK*URWRZVNLDW3RQWHGHUDGXULQJWKH V
)XUWKHUUHDGLQJ %HXPHUV %LUJLW ¶6SLQQLQJ WKH 7H[W WKH 3OD\ ZLWK ,QILQLW\ LQ &RQWHPSRUDU\ 5XVVLDQ 7KHDWUH· 0RGHUQ /DQJXDJH 5HYLHZ ²
3$75,&(&+e5($8
%UDXFNKRII 0DULD 'DV 7KHDWHU $QDWROLM 9DVLO·HYV %RFKXP 3URMHNW 9HUODJ GLVVHUWDWLRQ 9DVLO·HY $QDWROLM 'HP(LQ]LJHQ/HVHU %HUOLQ $OH[DQGHU9HUODJ 9DVVLOLHY $QDWROL 0DvWUH GH VWDJH D SURSRV GH %DO PDVTXH GH 0LNKDïO /HUPRQWRY &DUQLqUHV0RUODQZHO] /DQVPDQ(GLWHXU ³³ 6HSWRX+XLW/HoRQVGH7KpkWUH 3DULV 32/ :\QHNHQ*DOLELQ 5XWK $QDWROLM:DVVLOMHZ )UDQNIXUW )LVFKHU9HUODJ %,5*,7%(80(56
3$75,&(&+e5($8 ² &KpUHDX·VLVWKHEULOOLDQWFDUHHURIDQHQIDQWSURGLJH IUHTXHQWO\VHHQWR EHDQHQIDQWWHUULEOH ,WFRYHUVWKHDWUH RSHUDDQGILOP HDFKRIZKLFK KH PDVWHUV ZLWK HTXDO DSORPE +LV SDWKZD\ WKURXJK WKH WKHDWUH EHJDQLQ ZKHQKHZDVRQO\WZHQW\WZR\HDUVROGDQGDOUHDG\ WKH PDQDJLQJ DQG DUWLVWLF GLUHFWRU RI WKH 7KpkWUH GH 6DUWURXYLOOH D PXQLFLSDO WKHDWUH LQ WKH 3DULVLDQ VXEXUEV +H VWRSSHG ZRUNLQJ LQ WKH WKHDWUH LQ DSSDUHQWO\ GHILQLWLYHO\ EXW UHWXUQHG ZLWK D YLVFHUDO 3KqGUH DW WKH 2GpRQ7KpkWUH GH O·(XURSH LQ +H GLUHFWHG WKH &RQWHV G·+RIIPDQ DQG /XOX DW WKH 3DULV 2SHUDDQG:DJQHU·V5LQJ ZLWK3LHUUH%RXOH]DW%D\UHXWK ² ZKRVHFRXQWHUSRLQWWRWKHHVWDEOLVKHG¶%D\UHXWK· SURGXFWLRQVHDUQHG KLP LQWHUQDWLRQDO QRWRULHW\ ² :DJQHU VHW LQ WKH LQGXVWULDO ZRUOG UDWKHUWKDQLQWKHJORU\RIP\WKDQGOHJHQG +DYLQJDEDQGRQHGWKH RSHUD KHUHWXUQHGWRLWZLWK%HUJ·V:R\]HFN DWWKH&KkWHOHW7KHDWUH LQ 3DULV LQ +H GLUHFWHG RSHUD WKH ZD\ KH VWDJHG KLV WKHDWUH SURGXFWLRQV UHTXLULQJVLQJHUVWRLGHQWLI\WKHGUDPDWLFSXUSRVH DQG VLJQLILFDQFHRIWKHLUUROHVDQGWRSHUIRUPWKHPDVDFWRUVZKRVLQJ $V D GLUHFWRU RI ILOP &KpUHDX ZDV HTXDOO\ GHFLVLYH GHVSLWH WKH UHVWOHVVSDWWHUQRIKLVSURIHVVLRQDOOLIH +HPDGHVHYHUDOH[SHULPHQWDO ILOPV EHIRUH /D 5HLQH 0DUJRW KLV ILUVW ER[RIILFH VXFFHVV FRQWURYHUVLDOIRULWVSROLWLFDODQGVH[XDOYLROHQFH 7KHQ DIWHUWKHRII EHDW VXEWO\JD\&HX[TXLP·DLPHQWSUHQGURQWOHWUDLQ 7KRVH:KR/RYH 0H :LOO 7DNH 7KH 7UDLQ KH PDGH ,QWLPDF\ LQ (QJOLVK ZLWK 0DUN 5\ODQFH LQ WKH SULQFLSDO PDOH UROH &KHUHDX·V FDVWLQJ DSSHDUVSURYRFDWLYHVLQFH5\ODQFH ZKRLVWKHGLUHFWRURIWKH*OREH 7KHDWUHLQ/RQGRQ LVUHQRZQHGIRUKLVIHPDOHUROHVDWWKH*OREH $ERXW IDPLO\ YDOXHV FRQMXJDO LQILGHOLW\ DQG RYHUZKHOPLQJ KHWHUR VH[XDO GHVLUH ,QWLPDF\ ZDV WKUHDWHQHG ZLWK FHQVRUVKLS LQ %ULWDLQ EHFDXVH LW VKRZHG 5\ODQFH·V HUHFW SHQLV GXULQJ WKH VH[XDO DFW
3$75,&(&+e5($8
ZDV QRW FRQWURYHUV\ IRU SXEOLFLW\ RU GLGDFWLF SXUSRVHV EXW DERXW EHLQJ WUXWKIXO WR ZKDW KH VHHV UHJDUGLQJ KXPDQ EHLQJV $V KH REVHUYHGLQ ¶,WDONDERXWWKLQJVWKDW,ZDQWWRVHHRUDERXWWKH OLIHRISHRSOHZKRVHVHFUHW,ZLVKWRSHQHWUDWH ,JDYHXSZDQWLQJWR WHDFKSHRSOHOHVVRQVORQJDJR· $VODQ 6RQ)UqUH LV &KpUHDX·VODVWILOPWRGDWH $W6DUWURXYLOOH &KpUHDXWRRND%UHFKWLDQSHUVSHFWLYHRQ9LODU·V SULQFLSOHV IRU D¶SHRSOH·V WKHDWUH· UDGLFDOLVLQJ WKHP WKURXJK H[SOLF LWO\SROLWLFDOFROODERUDWLRQVZLWKWUDGHXQLRQVDQGVFKRROV ,I KHORVW LQWHUHVWLQWHDFKLQJ¶OHVVRQV· KHQHYHUVWRSSHGWKLQNLQJIURPWKHOHIW RIWKHSROLWLFDOVSHFWUXP DVKLVPHQWRUV 6WUHKOHU DQG3ODQFKRQ KDG QRW +H OHDUQHG DW WKH 3LFFROR 7HDWUR ² DERXW SRHWLF FRPSRVLWLRQ WKH QHFHVVLW\ RI KDUPRQ\ EHWZHHQ WKH HOHPHQWV RI D SURGXFWLRQ DQG WKH LPSRUWDQFH RI GHVLJQ IRU WKH WKHDWUH LQ DOO LWV IRUPV 5RJHU3ODQFKRQ ZLWKZKRP&KpUHDXEHJDQWRFRGLUHFWWKH 7KpkWUH 1DWLRQDO 3RSXODLUH GH 9LOOHXUEDQQH /\RQ LQ QXUWXUHG &KpUHDX·V¶IHHO· IRU GUDPDWXUJLFDO UHVHDUFK SDUWLFXODUO\ IRU VRFLRORJLFDODQGKLVWRULFDOFRQWH[WV 7KLVZDVFRQVLVWHQWO\WRVXVWDLQ &KpUHDX·V ZRUNV LUUHVSHFWLYH RI WKHLU JHQUH 3ODQFKRQ DOVR HQFRXU DJHG WKH WDVWH &KpUHDX VKDUHG ZLWK *HUPDQ ([SUHVVLRQLVW FLQHPD IRU DUFKLWHFWXUDO PRQXPHQWDOLVP VWDUWOLQJ LPDJHV VKDGRZV DQG VLOKRXHWWHV 7KHVHIHDWXUHVGLVWLQJXLVKHG&KpUHDX·V VWDJLQJRI/D'LVSXWH E\ 0DULYDX[ LQ 9LOOHXUEDQQH ZKLFK KDYLQJ DWWUDFWHG FRQVLGHUDEOH DWWHQWLRQ ZDV UHYLVHG LQ 3DULV LQ 1R OHVV GLVWLQFWLYH ZDV &KpUHDX·V WKLFN VPRNH HQRUPRXV PLUURUV ZKLFK UHIOHFWHG ERWK FKDUDFWHUVDQGVSHFWDWRUV DQGDUXQZD\WRWKHVWDJHZLWKDWRZHURQ LW ZKLFK H[WHQGHG SOD\LQJ VSDFH RXWZDUGV DQG XSZDUGV DZD\ IURP WKHFHQWUH $SDUWIURPLWVYLVXDOVWUDQJHQHVV WKHSURGXFWLRQUHYHDOHG D 0DULYDX[ ZKRVH GLDORJXH ZDV FUXHO WKXV QRWKLQJ OLNH WKH IULYRORXV EDQWHU PDULYDXGDJH IRU ZKLFK KH ZDV NQRZQ 0DULYDX[·V IDEOHWHOOVRID3ULQFHZKRLVRODWHVDEURWKHUDQGDVLVWHUDWELUWKVRDV WR EULQJ WKHP WRJHWKHU LQ HDUO\ DGROHVFHQFH DV DQ H[SHULPHQW RQ KXPDQEHKDYLRXU &KpUHDXUHHYDOXDWHGLW VKRZLQJWKDWWKH3ULQFH ZDVQRWDEHQLJQVHHNHURINQRZOHGJH EXWDQHPEOHPRISHUYHUVLW\ OHJLWLPDWHGE\SRZHU DQGFU\VWDOOLVHGKLVLQWHUSUHWDWLRQLQDQLPDJH RI WKH 3ULQFH VS\LQJ KDOIKLGGHQ IURP YLHZ LQ WKH WRZHU RQ WKH DGROHVFHQWV· ULWHV RI SDVVDJH &KpUHDX DOVR IUDPHG WKH IDEOH ZLWK D SURORJXH FRQVWUXFWHG RXW RI RWKHU WH[WV E\ 0DULYDX[ 7KH PRUDO GHEDWH LQ WKH SURORJXH XQGHUSLQQHG KLV UHRUJDQLVDWLRQ RI 0DULYDX[·V WZHQW\ VFHQHV LQWR VHYHQ QLJKWV HDFK RQH OHDGLQJ WKH \RXQJ FKDUDFWHUV WR GHVSDLU PDGQHVV DQG GHDWK +LV WH[WXDO
3$75,&(&+e5($8
¶WDPSHULQJ· UDUHDWWKHWLPHLQ)UDQFH ZDVSDUWRIWKHVKRFNRIWKH XQH[SHFWHGZKLFKZDVWREHFRPHW\SLFDOO\¶&KpUHDX· /D 'LVSXWH ZDV WKH VRXUFH RI RWKHU WUDGHPDUNV &KpUHDX·V LGHD WKDW D GLUHFWRU·V SRLQW RI YLHZ LV QHFHVVDULO\ GLIIHUHQW IURP WKH DXWKRU·V RUDOOHJHGO\WKHDXWKRU·V KLVFRQYLFWLRQWKDWWKHGLUHFWRULDO YLHZSRLQWPXVWEHYLVLEOHLQWKHVHTXHQFHVDQGHQWLUHVWUXFWXUHRID JLYHQ SURGXFWLRQ LELG KLV HQFRXUDJHPHQW RI WKH DFWRUV· UHVHDUFK LQWR WKHLU RZQ DFWLQJ SRWHQWLDOLW\ DQG SRVVLELOLWLHV KLV HPSKDVLV RQ WKH DFWRUV· H[WHUQDOLVHG DUWLFXODWH SOD\ KLV XVH RI QDWXUDOHOHPHQWV²UHDOWUHHV ZDWHU HDUWK²LQRVWHQWDWLRXVO\DUWLILFLDO HQYLURQPHQWV ZKLFK UHLWHUDWH KLV DIILQLW\ ZLWK *HUPDQLF FXOWXUH WKLVWLPHYLD3LQD%DXVFK ,Q3HHU*\QW WKHSURWDJRQLVWSHHOV DQRQLRQLQDFRQVWUXFWLYLVWVHWRISODQNV (DUWKILOOVWKHZKROHVSDFH RI&RPEDWGHQqJUHHWGHFKLHQV &RPEDWZLWK%ODFN'RJV ZKHUH DKXJHIO\RYHU FDUV DFDUDYDQ DVKDFN DWUHHDQGSURZOLQJGRJVVHHP DOOWKHPRUHRXWRISODFHIRUEHLQJUHDO $KRUVHULGGHQE\+DPOHW·V IDWKHU JDOORSV DFURVV WKH IORRU ERDUGV ZLWK D ULQJLQJ VRXQG 7KH ERDUGV LQ FRORXU DUH DUUDQJHG WR ORRN OLNH D SLFWXUH RI D 5HQDLVVDQFHSDODFHVXUURXQGHGE\GDUNQHVV &KpUHDX·VVWDJHZRUOGLVHVVHQWLDOO\QRFWXUQDO WKHVHYHQKRXU3HHU *\QW EHLQJ DQ H[WUHPH H[DPSOH FRPSDUDEOH RQO\ WR KLV 5LQJ ORZ VKDIWV RI OLJKW FUHHSLQJ PLVWV DQG RQ RFFDVLRQ D IXOO PRRQ RQ WKH KRUL]RQUHLQIRUFHLWVSHUYDVLYHREVFXULW\ 3ODQNV SXOOH\V VZLQJV SODW IRUPV DQG ZDOOV VKLIW DQG FUHDN GHVLJQ E\ 5LFKDUG 3HGX]]L WR VXJJHVW GDUN PRXQWDLQV FUHYLFHV DQG YDOOH\V DQG FDYHV LQKDELWHG E\ WUROOV 7KHGHVLJQIDFLOLWDWHV&KpUHDX·VXUJHWRSXVKEH\RQGWKHOLPLWV RI WKH VWDJH ZKLFK LV ODUJHO\ ZK\ KH OHIW LW WR HPEUDFH WKH VSDWLDO IUHHGRP RI WKH FLQHPD $FWLRQ RFFXUV RQ WKH SODQNV DQG VR RQ ZKLFK OLIW WLOW DQG IDOO LQ GLDJRQDOV YHUWLFDOV DQG KRUL]RQWDOV VFDW WHULQJ WKH VSDFH LQ DOO GLUHFWLRQV 6SDFH UHDFKHV LQWR WKH DXGLHQFH HYHQ WR WKH WRS URZV ZKHUH WKH DFWRUV UXQ VSHDNLQJ WKHLU OLQHV &KpUHDXPDQLSXODWHVIRFDOSRLQWVE\XVLQJWKHFLQHPDWRJUDSKLFWHFK QLTXHVRIWUDYHOOLQJVKRWV ]RRPVDQGFORVHXSV 7KHVHWHFKQLTXHVDUH HYLGHQW LQ DOO KLV WKHDWUH SURGXFWLRQV ZLWKRXW H[FHSWLRQ DQG VXEVWDQWLDWHDFODLPKHUHSHDWHGIUHTXHQWO\LQWKHODWH VWKDWWKH XQLYHUVHVRIWKHFLQHPDDQGWKHWKHDWUHZHUHQRWLQFRPSDWLEOH &KpUHDXFRQVWDQWO\UHYLHZVKLVXVHRIVSDFH ,Q &RPEDWGHQqJUHHW GHFKLHQV KHPHUJHVWKHVWDJHDQGDXGLWRULXP WUDQVIRUPLQJWKHZKROH WKHDWUHLQWRDFDYHUQRXVKDQJDU ,Q +DPOHW DQDSURQSURWUXGLQJZHOO LQWR WKH DXGLHQFH LV +DPOHW·V VSDFH +LV IDWKHU·V JKRVW LQYDGHV LW WKHUHE\ LQGLFDWLQJ SK\VLFDOO\ WKH SURGXFWLRQ·V JXLGLQJ WKUHDG KLV IDWKHU DV\PERORIWKHWLPH¶RXWRIMRLQW· DQGZKRLVRQDKRUVHOLNHD
3$75,&(&+e5($8
KRUVH RI WKH $SRFDO\SVH SODFHV DQ LPSRVVLEOH EXUGHQ RQ +DPOHW·V VKRXOGHUV WKDWRIVHWWLQJWRVHWWKHWLPHVULJKW &ULWLFVLQ0RVFRZ LQ WKHPLGGOHRISHUHVWURLND TXLFNO\JUDVSHGWKLVSRLQWZKHQ+DPOHW ZDV VKRZQ WKHUH LQ RQH \HDU DIWHU LWV SUHPLHUH DW WKH $YLJQRQ )HVWLYDO 'H 1XVVDF 7KH DSURQ LV DOVR WKH VSDFH IRU +DPOHW·V¶7REHRUQRWWREH· ZKLFKKHVSHDNVVRIWO\ZLWKKLVEDFNWR WKH DXGLHQFH GDUN VSDFH LQ IURQW RI KLP +LV SRVLWLRQ GHQRWHV KLV YXOQHUDELOLW\ DQG WKH VSDFH WKH LQVXUPRXQWDEOH GLIILFXOWLHV WKDW OLH DKHDG 3OD\ LQ /HV 3DUDYHQWV *HQHW·V 7KH 6FUHHQV RVFLOODWHV EHWZHHQ VWDJH DQG DXGLHQFH VSDFHV &KpUHDX KDV *HQHW·V FRORQLVHG $OJHULDQV KROG WKH VWDJH LQGLFDWLQJ E\ WKLV KRZ WKH\ PRYH WR WKH FHQWUH RI KLVWRU\ ZKHQ WKH\ PDNH WKHLU RZQ KLVWRU\ WKURXJK LQGH SHQGHQFHDQGUHYROXWLRQ +HSODFHVWKHFRORQLVHUVLQWKH¶PDUJLQV· WR WKH VLGH RI WKH DXGLHQFH 2QFH DJDLQ &KpUHDX GHPRQVWUDWHV WKDW KLV SOD\ ZLWK VSDFH LV QRW SXUHO\ D IRUPDO DIIDLU EXW LV LQ GLDORJXH ZLWK WKH VXEVWDQFH RI KLV SURGXFWLRQV DQG WKHLU ² LQ WKLV FDVH SROLWLFDO ² SHUVSHFWLYHV 3HHU*\QW LVVRPHWKLQJRIDPDWUL[IRU&KpUHDX·VFLQHPDWRJUDSKLF XVH RI VRXQG ,WV WKUHHGLPHQVLRQDO VRXQGVFDSH RI VHYHQ KRXUV DV ORQJ DV WKH SURGXFWLRQ LWVHOI GLVSHUVHV DOO VRUWV RI QDWXUDO VRXQGV ² ELUGV WKXQGHU UDLQ ² DPRQJ DEVWUDFW RQHV 0DQ\ UHSODFH GHFRU LQ WKDW WKH\ DFFRPSDQ\ DFWRUV DV WKH\ PRYH WKURXJK WKH DXGLWRULXP VXJJHVWLQJFKDQJHVRISODFHIURPYLOODJHWRPRXQWDLQSDWKRUFKDVP RUWRWKHVHDZKLFKFDUULHV3HHUDFURVVWKHZRUOGDQGEDFN LQVHDUFK RI KLPVHOI $OO RI WKHP EXLOG D KDOOXFLQDWRU\ DWPRVSKHUH IRU &KpUHDX·VFULWLFDOYLHZRI3HHU·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pUHDX :DJQHU·V LQILQLWHO\ FUXHO XQLYHUVH &KpUHDX·V WDVN ZDV WR REVHUYH :DJQHU·V VWDJHGLUHFWLRQVE\IROORZLQJKLVRZQWDVWHIRU¶WKHDWULFDOPDJLF· DQG WKH¶UXOHVRIWKHDWULFDOSOD\· DQGKLVFRQYLFWLRQWKDW¶WKHVWULQJVDQG WKH SXOOH\V· RI SURGXFWLRQ VKRXOG EH H[SRVHG WR YLHZ &KpUHDX
3$75,&(&+e5($8
² +HXUJHGWKHVLQJHUVWRDYRLGDXWRPDWLFUHVSRQVHVWR WKH ZRUGV DUJXLQJ WKDW¶WKH WH[W VD\V D KXQGUHG WKLQJV EXW \RX GR QRWSOD\LWLI\RXSOD\RQO\ZKDWLVZULWWHQ· LELG 3OD\LQJZKDW ZDVQRWZULWWHQPHDQWJRLQJ¶EHKLQG· HDFKOLEUHWWR +HXQHDUWKHG LQ 6LHJIULHG DKRVWRIDQWL6HPLWLFSUHMXGLFHVZKLFKKHZDVQRWDIUDLGWR GLVSOD\LQ%D\UHXWK DSODFHZLWKD1D]LSDVW +HIRXQG¶GLVRULHQWHG KXPDQLW\· LQ7KH7ZLOLJKWRIWKH*RGV LELG )RULWVVKHHULQWHU SUHWDWLYHDQGWKHDWULFDODXGDFLW\ &KpUHDX·V 5LQJ LVDPDMRUHYHQWLQ WKHKLVWRU\RIRSHUDSURGXFWLRQ &KpUHDX·VEDSWLVPE\ILUHLQWKH VSUHSDUHGKLPIRUKLVFR GLUHFWRUVKLSZLWK&DWKHULQH7DVFDRIWKH7KpkWUHGHV$PDQGLHUV LQ 1DQWHUUH LQ ZHVWHUQ 3DULV ² +H WUDQVIRUPHG WKH $PDQGLHUV IURP D SHULSKHUDO YHQXH LQWR D FHQWUH ZLWK D EURDG FXOWXUDOUHPLWXQPDWFKHGE\DQ\WKHDWUHLQ)UDQFH +HJDYHSULRULW\ WR DUWLVWLF UDWKHU WKDQ SUDFWLFDO GHPDQGV HVWDEOLVKHG D VFKRRO IRU DFWRUV EURXJKWWRJHWKHUKLVROGWLPHFROODERUDWRUV DPRQJWKHPWKH DFWRUV 0DULD &DVDUqV DQG *pUDUG 'HVDUWKH KLV VFHQRJUDSKHU 3HGX]]L FRVWXPH GHVLJQHU -DFTXHV 6FKPLGW DQG VRXQG GHVLJQHU $QGUp 6HUUp JDWKHUHG XS QHZ DFWRUV PDQ\ RI WKHP VWDUV RI WKH FLQHPD 0LFKHO 3LFFROL %XOOH 2JLHU QRW MXVW EHFDXVH WKH\ KDG H[FHSWLRQDO VNLOOV EXW EHFDXVH ¶D ZKROH KXPDQLW\ SDVVHV WKURXJK WKHP· $VODQ +H GLG QRW DLP WR EXLOG DQ HQVHPEOH FRPSDQ\ EXW DQ DUWLVWLF WHDP ,Q DGGLWLRQ KH LQYLWHG QDWLRQDO DQG LQWHUQDWLRQDO GLUHFWRUV :LOVRQ 5RQFRQL 6WHLQ 6HOODUV /XF %RQG\ DQG LQWHUQDWLRQDO WURXSHV GHYHORSHG QHZ WHFKQLTXHV DQG WHFKQRORJLHV KDGUHKHDUVDODQGFLQHPDVWXGLRVRQWKHSUHPLVHV DQG RUJDQLVHGFRQFHUWVDQGWDONV 1RW OHDVW DPRQJ KLV DFKLHYHPHQWV ZDV KLV HQJDJHPHQW ZLWK \RXQJDXWKRUV PRVWQRWDEO\%HUQDUG0DULH.ROWqV ZKRPKHYLUWX DOO\SXWRQWKHPDS $SDUWIURP &RPEDW KHVWDJHG 4XDLRXHVW .H\ :HVW 'DQVODVROLWXGHGHVFKDPSVGHFRWRQ ,QWKH6ROLWXGHRIWKH &RWWRQ )LHOGV LQ ZKLFK KH SHUIRUPHG DQG 5HWRXU DX GpVHUW 5HWXUQWRWKH'HVHUW ,Q&KpUHDX·VELJVW\OH WKH\DOOJLYHGXH ZHLJKW WR .ROWqV· QRWLRQ WKDW SRZHU DQG FRQWURO DUH H[SUHVVLRQV RI IHDU VXVSLFLRQ FRPSHWLWLRQDQGORDWKLQJ $OOKLV$PDQGLHUVSURGXF WLRQV DPRQJ WKHP 0DULYDX[·V /D )DXVVH VXLYDQWH &KHNKRY·V 3ODWRQRY DQG RI FRXUVH +DPOHW SLFN XS WKHVH FRQFHUQV EXW QRQHGHDOZLWKWKHPDVEUXWDOO\DVKLVSURGXFWLRQVRI.ROWqV 1RQH VKRZ DV SODLQO\ DV KLV .ROWqV SURGXFWLRQV WKDW YLROHQFH LV QRW D PDWWHURIWKHPDWLFV EXWLVDIDFWRIOLIH $W $PDQGLHUV &KpUHDX DWWHPSWHG WR EULQJ KLV DFWRUV· IDFHV LQWR FORVHU YLHZ DV RFFXUV LQ ILOP DQG SXVKHG KLV DFWRUV· SK\VLFDOLW\ VR
/(9'2',1
WKDW WKH\ FRXOG ERGLO\ WHDU WKHLU FKDUDFWHUV· SDVVLRQV RSHQ +H UH GLVFRYHUHGWKHVHTXDOLWLHVLQ3KqGUH SHUIRUPHGLQDORQJDQGQDUURZ VSDFH E\ KLV ROGWLPH DFWRUV ZKR VSRNH 5DFLQH·V DXJXVW YHUVH DV LI WKH\ZHUHVSHDNLQJHYHU\GD\ODQJXDJHDQGZKRJDYHWKHVSHFWDWRUV ULJKW XQGHU WKHLU QRVH DQ DVWRXQGLQJ HPRWLRQDO H[SHULHQFH RI WKH NLQG QR SURGXFWLRQ HPXODWLQJ WKH FODVVLFDO UXOHV RI SURVRG\ DQG DIIHFWLYHGHOLYHU\FRXOGKDYHJLYHQWKHP 1RWHV
$OOWUDQVODWLRQVDUHP\RZQ
)XUWKHUUHDGLQJ $VODQ 2GHWWH HG &KpUHDX /HV 9RLHV GH OD &UpDWLRQ 7KpkWUDOH ;,9 3DULV &156(GLWLRQV &KpUHDX 3DWULFH /RUVTXHFLQTDQVVHURQWSDVVpV VXUOH 5LQJGH5LFKDUG :DJQHU 7RXORXVH (GLWLRQV2PEUHV 'H1XVVDF 6\OYLH FRPSLOHG 1DQWHUUH$PDQGLHUV /HV$QQpHV&KpUDX ² 3DULV (GLWLRQV,PSULPHULH1DWLRQDOH 0HUYDQW5RX[ 0DULH0DGHOHLQH ¶/H +DPOHW GH 3 &KpUHDX j 0RVFRX (WXGH G·XQH WRXUQpH· LQ /·$VVLVH GX 7KpDWUH SRXU XQH pWXGH GX VSHFWDWHXU 3DULV &156(GLWLRQV ² 6KHYWVRYD 0DULD ¶3HHU*\QW LQ)UDQFH'LUHFWHGE\3DWULFH&KpUHDX· LQ7KHDWUHDQG&XOWXUDO,QWHUDFWLRQ 6\GQH\ 6\GQH\6WXGLHV ² 0$5,$6+(97629$
/(9'2',1 ² 'RGLQ·V DFKLHYHPHQWV DUH YLUWXDOO\ XQWKLQNDEOH ZLWKRXW WKH 0DO\ 'UDPD7KHDWUHRI6W3HWHUVEXUJ ZKLFKKHKDVGLUHFWHGVLQFH 1RRWKHUFRPSDQ\LQWKHZRUOGWRGD\LVDVWLJKWO\NQLWRUDVH[FOX VLYHO\ IRFXVHG RQ ZRUNLQJ LQWHQVLYHO\ FRQWLQXDOO\ DQG SHUPDQHQWO\ WRJHWKHUDVLVWKLVHQVHPEOH ,WKDVEXLOWLWV¶FRPPRQODQJXDJH· RQD VFKRROFRPSDQ\ FRQWLQXXP 'RGLQ KDYLQJ WUDLQHG WKUHH JHQHUD WLRQVRIDFWRUVDWWKH/HQLQJUDG6WDWH7KHDWUH,QVWLWXWH QRZWKH6W 3HWHUVEXUJ $FDGHP\ RI 7KHDWUH $UWV ZKHUH KH EHJDQ WR WHDFK LQ 7KH0DO\LQFRUSRUDWHVHYHU\ERG\IURPWHFKQLFLDQVDQGVWDJH KDQGV WR WKH YRLFH PXVLF DQG GDQFH WHDFKHUV ZKR KHOS WR SUHSDUH 'RGLQ·V VWXGHQWV DQG ZKR FRDFK WKHP VWLOO DV SURIHVVLRQDOV 7KH HQGXULQJ FRPPLWPHQW WR LWV FROODERUDWLYH SULQFLSOHV RI WKHLU
/(9'2',1
FRPSDQ\ RI DFWRUV DQG D WRWDO RI SHRSOH DOVR GHILQHV LWV XQLTXHHQVHPEOHG\QDPLFV )RU 'RGLQ WKH WUDLQLQJ RI DFWRUV FDQQRW EH UHGXFHG WR¶WHFK QLTXH· ¶H[HUFLVH· RU¶PHWKRG· ,W FRQVLVWV RI D¶WUDLQLQJ RI WKH KHDUW DQGRIWKHQHUYRXVV\VWHP· WKDWLV RIIHHOLQJ VHQVDWLRQDQGVHQVRU\ UHFHSWLYLW\ XQSXEOLVKHGLQWHUYLHZZLWKDXWKRU 3DULV $SULO +LVSHUVSHFWLYHLVEURDGO\6WDQLVODYVNLDQLQVRIDUDVKHEHOLHYHVWKDW WHFKQLTXHDZDNHQVHPRWLRQV EXWKHLVFULWLFDORIWKH 6WDQLVODYVN\ ¶V\VWHP· VHHLQJLWDVOLWWOHPRUHWKDQPHFKDQLVPVWKDWSUHYHQWDFWRUV IURP WXQLQJ LQWR WKHLU LQQHUPRVW¶DOLYHQHVV· 7KH DFWRUV· WDVN LV WR UHDFK WKLV¶DOLYHQHVV· ZKLFK DFWLYDWHV WKHLU JURZWK DQG VSDUNV RII D FKDLQ UHDFWLRQ IURP DFWRU WR DFWRU WR VSHFWDWRU ² D SURFHVV 'RGLQ GHVFULEHV DV ¶LQIHFWLRQ· WR LQGLFDWH LWV RUJDQLF TXDOLW\ $ERYH DOO WUDLQLQJGHYHORSVWKHVSLULWXDO LQWHOOHFWXDODQGFXOWXUDOHYROXWLRQRI WKH KXPDQ EHLQJ ZKR LQKDELWV WKH DFWRU 7KH WKHDWUH PDGH E\ KLPKHUWKHUHE\EHFRPHVDSODFHRIVLPLODUSRVVLELOLWLHVIRUVSHFWD WRUV 7KH VWXGHQWV ZKR JUDGXDWHG LQ ZLWK *DXGHDPXV GHPRQ VWUDWH 'RGLQ·V GHYHORSPHQWFHQWUHG DSSURDFK WR WUDLQLQJ 7KH\ OHDUQHG WR SOD\ EUDVV DQG ZLQG LQVWUXPHQWV HVSHFLDOO\ IRU WKH SURGXFWLRQ DQG WRXUHG *DXGHDPXV WR JUHDW LQWHUQDWLRQDO DFFODLP GXULQJ WKH HDUO\ V DFFRPSDQLHG E\ WKHLU PXVLF WHDFKHUV ZKR PRQLWRUHG WKHLU SURJUHVV 6R HIIHFWLYH ZDV WKLV RQJRLQJ OHDUQLQJ WKDW E\WKHWLPH'RGLQVWDJHG&KHNKRY·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· FDSDFLW\IRUOLVWHQLQJ WR DQG KHDULQJ HDFK RWKHU RQ VWDJH HQFRXUDJHV DQ LPPHGLDWH UHVSRQVH WR D VSHFLILF VLWXDWLRQ DQG WKXV LPSURYLVDWLRQ DURXQG WKDW UHVSRQVH DQGKHOSVDFWRUVWRPDNHGLVFRYHULHVWRJHWKHU ZKLFK DSDUW IURP UHLQIRUFLQJ WKHLU HQVHPEOH LGHQWLW\ LQVSLUHV WKHP WR H[WHQG WKHLUSHUVRQDOLPDJLQDWLYHDQGLQWHOOHFWXDOUHVRXUFHVWKURXJKIXUWKHU UHDGLQJ 5HDGLQJ'RVWRHYVN\·V7KH'HYLOV WRJHWKHUOHGWKHDFWRUVWR HYHU\WKLQJ 'RVWRHYVN\ LV EHOLHYHG WR KDYH UHDG ZKLOH ZULWLQJ KLV ERRN 7KLVDFFXPXODWHGFXOWXUHUHVRQDWHGLQWKHVFHQHVWKH\GHYLVHG
/(9'2',1
DQGJXLGHGWKHLUFULWLFDOSHUFHSWLRQRIWKHP &KHYHQJXU IURP WKHQRYHOE\$QGUH\3ODWRQRY IROORZHGDVLPLODUSDWWHUQ 7KHDFWRUV LQYHQWHG PXOWLSOH VFHQHV ZKLFK WKH\ SHUIRUPHG WR 'RGLQ ZKR DV XVXDOO\ KDSSHQV REVHUYHG SUREHG SURGGHG DQG WDONHG JHQHUDOO\ DURXQGWKHLUZRUNUDWKHUWKDQFRPPHQWHGGLUHFWO\RQLW 7KHDFWRUV WKHQ LQWHUQDOLVHG KLV FRQWULEXWLRQ SURFHVVLQJ LW WKURXJK WKHLU ¶QHUYRXV V\VWHP· EHIRUH FRPLQJ XS ZLWK DOWHUQDWLYHV *UDGXDOO\ 'RGLQGLUHFWHGDSLHFHRXWRIVXFFHVVLYHGHYLVLQJV VRPHWLPHVJRLQJ EDFNZDUGVWRHDUOLHUYHUVLRQV DWRWKHUWLPHVDQWLFLSDWLQJQHZRQHV ZKLFKWKHDFWRUVSOD\HGDURXQGZLWKDQGUHILQHG 7KHVH SURFHGXUHV DUH VORZ EXW KDYH WKH DGYDQWDJH RI GUDZLQJ LQWR WKHLU FROODERUDWLYH HIIRUWV DOO WKH H[SHULHQFHV XQGHUJRQH E\ WKHLU SDUWLFLSDQWV GXULQJ WKH SDVVDJH RI WLPH 7KHLU PDWXUDWLRQ LV LQWHJUDO WR WKH PDWXUDWLRQ RI WKH ZRUN )RU WKLV UHDVRQ 'RGLQ·V SULQFLSDOWDVNDVDGLUHFWRULVEHVWGHVFULEHGDVFDWDO\WLF KH SURPSWV DFWRUVWR¶GLJ· WKURXJKWKHOD\HUVRIWKHLUH[LVWHQFH²PHPRULHVDQG VXEFRQVFLRXVH[SHULHQFHVLQFOXGHG²LQRUGHUWRILQGLQWKHPVHOYHV ZKDWHYHUWKH\DUHSOD\LQJDQGVWLPXODWHWKHLUH[LVWHQWLDODQGFUHDWLYH SRWHQWLDO $FWLQJ 'RGLQ EHOLHYHV LV GULYHQ E\ ¶LQQHU HQHUJ\· ZKLFK KH GHILQHVDV¶WKHIHHOLQJDQGWKRXJKWWKDWPRYH GLVWXUEDQGH[FLWHXV DQG GR QRW JLYH XV SHDFH HQHUJ\ GRHV QRW PHDQ EHLQJ ORXGHU RU PRUH QHUYRXV EXW DVNLQJ VKDUSHU PRUH DVWXWH TXHVWLRQV· ZKLFK HQJHQGHUDFWLRQV XQSXEOLVKHGLQWHUYLHZZLWKDXWKRU 6W3HWHUVEXUJ 6HSWHPEHU 7KHDFWRULQYROYHGLQWKLVSURFHVVLVQRWSULPHG WREHDPHUHLQWHUSUHWHURU ZRUVHVWLOO WRH[HFXWHWKHGLUHFWRU·VZLOO EXWEHFRPHVZKDW'RGLQFDOOVDQ¶DFWLYHFRDXWKRU· RIDSURGXFWLRQ DORQJLWVHQWLUHUHVHDUFKSDWKRU¶MRXUQH\RIELUWK· XQSXEOLVKHGLQWHU YLHZ ZLWK DXWKRU :HLPDU -XO\ 7KH FRJQDWHV RI ¶ELUWK· QRWDEO\¶JLYLQJ ELUWK DQHZ· DUH LQWHJUDO WR 'RGLQ·V YRFDEXODU\ DQG DUH FRQVLVWHQW ZLWK KLV YLHZ WKDW D SURGXFWLRQ LV D¶OLYLQJ RUJDQLVP· DQG WKH WKHDWUH D SODFH RI VSLULWXDO UHJHQHUDWLRQ DQG UHQHZDO ² UHELUWK LQVRPHVHQVHRIWKHZRUG²IRUDOOZKRHQJDJHZLWKLW 6LQFH FRDXWKRULQJ LV FUXFLDO WR WKH FRPSDQ\·V REMHFWLYHV DFWRUV DUH H[SHFWHG WR DWWHQG DOO GHYLVLQJ VHVVLRQV DQG UHKHDUVDOV LUUHVSHF WLYHRIZKHWKHUWKH\ZLOOEHUHTXLUHGWRSOD\RQDSDUWLFXODUGD\RU QRW 7KLV PHDQV WKDW HYHU\ERG\ VKDUHV WKH GLVFRYHULHV PDGH LQ D SDUWLFXODUVFHQHDQGXQGHUVWDQGVWKHLUGRPLQRHIIHFWRQVXEVHTXHQW UHZRUNLQJV 8QEURNHQ SDUWLFLSDWLRQ LV DOVR HVVHQWLDO EHFDXVH FDVWLQJ LV QRW SUHVHW GLIIHUHQW FRPELQDWLRQV RI SHUIRUPHUV DQG UROHV DUH WULHGRXWIRUDSURGXFWLRQRYHUDQXPEHURI\HDUVXQWLOWKHULJKWFDVW HPHUJHVIURPWKHSURFHVV
/(9'2',1
7KH 0DO\·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·V ¶ILQDO· YHUVLRQ 7KH PXVLF WKDW UHPDLQV LV SOD\HG DOPRVW QRQVWRS DQG FRYHUV D ZLGH UDQJHRIJHQUHVDQGSHULRGV²MD]] EOXHV FODVVLFDOSLHFHV 5XVVLDQ URPDQFHV RSHUD DULDV ZDOW]HV FKDUOHVWRQV WDQJRV ² DOO RI LW UHIOHFWLQJWKHLQSXWRIWKHGLIIHUHQWSHRSOHLQYROYHGLQWKHZRUN·V GHYHORSPHQW 5HKHDUVDOV IRU 'RGLQ DUH SHUIRUPDQFHV LQ WKHLU RZQ ULJKW ZKLFKLVZK\DFWRUVSHUIRUPIXOO\LQWKHP DVLIDOUHDG\LQIURQWRI DQ DXGLHQFH 5HKHDUVDOV DUH DOVR D ]RQH RI XQFRQGLWLRQDO IUHHGRP ZKHUH DFWRUV DQG GLUHFWRU RSHQ WKHPVHOYHV WR HDFK RWKHU WKURXJK LPSURYLVDWLRQV DQG ZKDW 6WDQLVODYVN\ FDOOHG pWXGHV 'RGLQ H[WHQGV WKHVFRSHRIp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¶WKHDWUHRISURVH· LVRQHRI'RGLQ·VPDLQLQQRYDWLRQVDQGKDV QRWKLQJ LQ FRPPRQ ZLWK WKH 5XVVLDQ WUDGLWLRQ RI DGDSWLQJ SOD\VFULSWV IURP QRYHOV 'RGLQ·V DFWRUV SHUIRUP D QRYHO LQ LWV HQWLUHW\ ZULWLQJZKDWHYHQWXDOO\EHFRPHVDVFULSWWKURXJKWKHSK\V LFDO SURFHVV LWVHOI 7KH 'HYLOV IRU H[DPSOH WRRN PRUH WKDQ WKUHH \HDUVDQGJHQHUDWHGFRXQWOHVVKRXUVRISOD\ 7KLVPDVVZDVZKLWWOHG GRZQWRDERXWWZHQW\KRXUV WKHQHYHQWXDOO\UHGXFHGWRHLJKWDQG GLYLGHGLQWRWKUHHSDUWV :KDWEHFDPHWKHSURGXFWLRQZHQWWKURXJK VHYHUDOSKDVHV WKHERRN·VWKHPHV PRWLIVDQGLVVXHVEHLQJKLJKOLJKWHG LQYDULRXVFRPELQDWLRQV 'RGLQFXOOHG FXWDQGDVVHPEOHG PXFKOLNH D OLWHUDU\ HGLWRU H[FHSW WKDW KH GLG LW ZLWK OLYLQJ SHRSOH 6HYHUDO SRWHQWLDO SURGXFWLRQV IHOO E\ WKH ZD\VLGH GXULQJ WKLV LQWHQVH
/(9'2',1
UHVHDUFK PDQ\RIWKHPZRUWK\RISXEOLFYLHZLQJ FRQYHUVDWLRQZLWK 1LNROD\/DYURY 6W3HWHUVEXUJ 6HSWHPEHU 7KH0DO\·VUHSHUWRLUHLVODUJHO\FRPSRVHGRI¶WKHDWUHRISURVH· ,WV VLJQDWXUHSLHFH %URWKHUVDQG6LVWHUV LVIURP)\RGRU$EUDPRY·V WULORJ\DERXWWKHKDUGVKLSVRISHDVDQWOLIHLQQRUWKHUQ5XVVLD DWWKH HQG RI WKH 6HFRQG :RUOG :DU 'RGLQ KDG DOUHDG\ GLUHFWHG 7KH +RXVH E\$EUDPRYLQ DWWKH0DO\ $SDUWIURPWKHWLWOHVQRWHG SUHYLRXVO\ ² 7KH 'HYLOV &KHYHQJXU DQG *DXGHDPXV IURP 6HUJH\ .DOHGLQ·V QRYHO 7KH &RQVWUXFWLRQ %DWWDOLRQ ² WKHUH DUH /RUG RI WKH )OLHV IURP :LOOLDP *ROGLQJ·V QRYHO DQG &ODXVWURSKRELD GHYLVHG E\ WKH FODVV RI *DXGHDPXV DV D FROODJH RI IUDJPHQWV IURP FRQWHPSRUDU\ ILFWLRQ ZRYHQ WKURXJK RSHUDWLF DQG EDOOHWLF LGLRPV 7KH DFWRUV GHI\ SK\VLFDOVSDWLDO OLPLWV 7KH\ FUDZO XS WKH ZDOOV DQG VZD\ SHULORXVO\ DZD\ IURP WKHP RU FUDVK WKHLU ZD\ WKURXJK WKHP 7KH\ ZDON RQ OHGJHV DQG GDQFH RQ EDUUHV 0HQ GDQFHHQSRLQWH 'LDORJXHLVVXQJ %UDVVLQVWUXPHQWVDUHSOD\HGVDWLUL FDOO\DVEDUEHGDVLGHVRQVRFLRSROLWLFDOUHDOLWLHV ,QRQHIXQQ\VFHQH WKH\ DUH XVHG DV PHGLFDO LQVWUXPHQWV E\ ¶GRFWRUV· DWWHPSWLQJ WR UHYLYH/HQLQ·VFRUSVH 3OD\V DUH JLYHQ OHVV SULRULW\ DOWKRXJK LQ WKH V DQG V 'RGLQ VWDJHG YDULRXV ¶GLVVLGHQW·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·V7KH%URNHQ-XJ DQG2·1HLOO·V'HVLUH 8QGHU WKH (OPV LQ DQG &KHNKRY KLV RQO\ 5XVVLDQ FODVVLFDO GUDPDWLVW IRU WKH ILUVW WLPH ZLWK 7KH &KHUU\ 2UFKDUG LQ IROORZHGE\$3OD\ 7KH6HDJXOO DQG8QFOH9DQ\D 'RGLQ·V &KHNKRY SURGXFWLRQV FRQFHQWUDWH RQ XQFHUWDLQW\ SUHFDULW\ HJRFHQWULVP FUXHOW\ DQG PLVJXLGHG ORYH 7KH &KHUU\ 2UFKDUG LV WKH PRVW VRPEUH RI WKHP LWV FRQFHUQV HQFDSVXODWHG LQ (GXDUG .RFKHUJLQ·V GHVLJQ D JURXS RI EODFN WULSW\FKV LQWLPDWLQJ VFUHHQV FRUULGRUV GRRUV ZLQGRZV DQG DOWDUV ZKLFK XQVHHQ KDQGV WHDUDSDUWOHDYLQJEDUHIUDPHV OLNHWKHIUDPHVRIDUXLQHGKRXVH DW WKHHQGRIWKHSHUIRUPDQFH %UDQFKHVRIEORVVRPDUHDWWDFKHGWRWKH EDFN RI WKHVH WUDQVSDUHQW ZLQGRZV EULQJLQJ WRJHWKHU WKH RXWVLGH DQG WKH LQVLGH WKH RUFKDUG DQG WKH KRXVH DQG WKH SK\VLFDO DQG
/(9'2',1
PHQWDO VWDWH RI WKH FKDUDFWHUV 7KH FRQVWUXFWLRQ IDOOV DSDUW DERXW WKHP QRPRUHSRLJQDQWO\WKDQZKHQWKH\ZHDYHDGDQFHLQDQGRXW RIWKHFRUULGRUVRIWKHLUKRXVHPLQG 'RGLQDYRLGVSDWKRV DVLQ DOO KLV &KHNKRY SURGXFWLRQV DQG VHHNV JHQHUDOLVLQJ SRZHU IURP WKH VSHFLILF LQVWDQFHV HPERGLHG E\ KLV DFWRUV 7KH WKHDWUH LQ KLV YLHZ IXOILOV LWV PRVW LPSRUWDQW SXUSRVH ZKHQ LW VKRZV SHRSOH WKHLU FRPPRQKXPDQLW\ 7KHV\PELRVLVEHWZHHQGLUHFWLRQDQGVFHQRJUDSK\LQ 7KH&KHUU\ 2UFKDUG LV D 0DO\ SULQFLSOH .RFKHUJLQ·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·VFHQWUDOLGHDWKDW DVLQ&KHNKRY·VSHULRG SHRSOHWRGD\ DUHDGULIWLQDSUHFDULRXVZRUOG 6FHQHV DUH DOZD\V FRQQHFWHG VHDPOHVVO\ DOWKRXJK IRU GLIIHUHQW SXUSRVHV 6HDPOHVV FRPSRVLWLRQ LQ %URWKHUV LV V\PSKRQLF DQG LWV UK\WKPV SKUDVLQJDQGFDGHQFHVFKDQJHDFFRUGLQJWRVHFWLRQ PRYH PHQW RU PRWLI ,Q 7KH 'HYLOV LW FKDQQHOV DWWHQWLRQ WR WKH DFWRUV· FRQFHQWUDWLRQDQGLQWHQVLW\ ,Q$3OD\ 'RGLQUXQVVFHQHVVLPXOWDQH RXVO\ 6HYHUDOVFHQHVDUHVSRNHQDWRQFH 6LQJLQJLQRQHVFHQHGRHV QRW GURZQ RXW WKH VSHHFK RI D FRQFXUUHQW VFHQH DQ\ PRUH WKDQ GRHV WKH QRQVWRS PXVLF 6LPXOWDQHLW\ QRW RQO\ FUHDWHV PXOWLSOH YLVXDODQGVSDWLDOGLPHQVLRQV EXWDOVRWH[WXUHVVRXQG 'RGLQ·VLQQR YDWLRQV LQ $ 3OD\ FRQILUP KLV EHOLHI WKDW WKH WKHDWUH LV YLUWXDOO\ ZLWKRXW OLPLWV SURYLGLQJ LWV DFWRUV DUH GHYHORSHG EH\RQG WKHLU SUHVXPHG OLPLWV +H WUDLQV KLV DFWRUV WR EH YHUVDWLOH DQG YLUWXRVLF DQGLQFXOFDWHVLQWKHPWKHYLUWXHVRIPHQWDODJLOLW\ IOH[LELOLW\ EROG QHVV DQG ULVNWDNLQJ DQG WKH IHHOLQJ WKDW WKH\ DUH DEOH WR GR DQ\WKLQJ 'RGLQ·V DFKLHYHPHQWV DV D GLUHFWRU LQFOXGH KLV VWDJLQJ RI VHYHQ RSHUDV (OHNWUD E\5LFKDUG6WUDXVVDW6DO]EXUJ /DG\0DFEHWKRI
(/,=$%(7+/(&2037(
0WHQVN E\6KRVWDNRYLFKLQ)ORUHQFH 7KH4XHHQRI6SDGHV E\ 7FKDLNRYVN\ LQ $PVWHUGDP 0D]HSD E\ 7FKDLNRYVN\ LQ 0LODQ 7KH 'HPRQ E\ $QWRQ 5XELQVWHLQ LQ 3DULV 2WHOOR E\9HUGLLQ)ORUHQFH DQG6DORPp E\5LFKDUG6WUDXVVLQ 3DULV /LNH6WDQLVODYVN\DQG0H\HUKROGEHIRUHKLP KHVHHNV LQWKLVPRVWFRPSUHKHQVLYHDQGV\QWKHWLFRIDUWVLWVYHULWDEOHWKHDWUL FDOLW\ 7KLV PHDQV WUHDWLQJ RSHUD DV LI LW ZHUH VSRNHQ WKHDWUH DQG VLQJHUV DV LI WKH\ ZHUH DFWRUV ,W PHDQV DV ZHOO DOORZLQJ WKH PXVLF DQGWKHGUDPDWLFDFWLRQWRGRWKHLUUHVSHFWLYHZRUNDQGQRWPHUHO\ WR LOOXVWUDWH HDFK RWKHU 2Q WKHVH SRLQWV 'RGLQ MRLQV %URRN DQG 6WUHKOHU ZKR LQ DQ\ FDVH DGYDQFHG ZKDW 6WDQLVODYVN\ DQG 0H\HUKROGKDGEHJXQ 1RWHV
$ WHUP DW WKH KHDUW RI 'RGLQ·V YRFDEXODU\ ZKLFK OLNH ¶FRPPRQ ODQJXDJH· DERYHFDQQRWEHDVVLJQHGWRDVLQJOHGDWH $OOWUDQVODWLRQVDUH PLQH
)XUWKHUUHDGLQJ $XWDQW0DWKLHX 0DULH&KULVWLQH ¶/H7KpkWUHUXVVHDSUqVO·8566· 7KpkWUH3XEOLF ² VHFWLRQRQ'RGLQDQGWKH0DO\ ² 'PLWUHYVND\D 0DULQD ¶ ¶¶,VKFKHP P\ VHO· LVKFKHP P\ ERO· HWRL ]HPOL·· · ¶ ¶¶:H VHHN VDOW ZH VHHN WKH SDLQ RI WKLV ODQG·· · 7HDWU ² 6KHYWVRYD 0DULD 'RGLQDQGWKH0DO\'UDPD7KHDWUH 3URFHVVWR3HUIRU PDQFH /RQGRQDQG1HZ
(/,=$%(7+/(&2037( ² /H&RPSWHKDVEHHQWKHDUWLVWLFGLUHFWRURIWKH:RRVWHU*URXSVLQFH %DVHG LQ WKHLU WKHDWUH VSDFH WKH 3HUIRUPLQJ *DUDJH 1HZ
(/,=$%(7+/(&2037(
ZRUN¶DQQRXQFH>V@SHUIRUPDQFHLWVHOIDVWKHILHOGRIUDZPDWHULDO· ,W LV FHUWDLQO\ WUXH WKDW /H&RPSWH·V ZRUN LV FKDUDFWHULVHG E\ KHU LQWHUHVWLQWKHSROLWLFDOHIIHFWVRIWKHDWULFDOUHSUHVHQWDWLRQ ,WGHPRQ VWUDWHVDQXQHDV\DZDUHQHVVRIWKHZD\VLQZKLFKWKHSHUIRUPDQFHRI LGHQWLW\ RQ VWDJH FDQ VKDSH VSHFWDWRUV· DWWLWXGHV WRZDUGV KLHUDUFKLHV RI UDFH JHQGHU DQG VH[XDOLW\ 3HUIRUPDQFH LV ERWK WKH DHVWKHWLF PDWHULDO ZLWK ZKLFK /H&RPSWH ZRUNV DQG WKH SROLWLFDO WDUJHW ZKLFKVKHLQWHUURJDWHVDQGFULWLTXHV ,W ZRXOG EH D PLVWDNH WR VLQJOH /H&RPSWH RXW DV D GLUHFWRU ZLWKRXWWDNLQJLQWRDFFRXQWWKHFROOHFWLYHDQGFROODERUDWLYHQDWXUH RIWKH:RRVWHU*URXS·VZRUN /H&RPSWH·VGLUHFWLQJLVURRWHGLQH[ WULFDEO\ZLWKLQWKHFUHDWLYHLPSXOVHVRIWKHFRPSDQ\DVDZKROH DQG DQDQDO\VLVRIKHUZRUNPXVWWDNHDFFRXQWRIWKHSURFHVVHVWKURXJK ZKLFKWKH:RRVWHU*URXSDVDFRPSDQ\GHYHORSDQGSHUIRUPWKHLU ZRUNRQWKHVWDJH 7KHFRPSDQ\·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·VVWUXFWXUHVDQGDSSURDFK 7KH:RRVWHU*URXSKDYHEHFRPHIDPRXVIRUWKHLUGHFRQVWUXF WLYHDSSURDFKWRLGHQWLW\ 7KH\LQWHUURJDWHHVVHQWLDOLVHGDWWLWXGHVWR JHQGHU UDFH DQG WKH ERG\ E\ XQGHUPLQLQJ DQG IUDJPHQWLQJ WKH DFWRU·VSUHVHQFHRQWKHVWDJH DQGE\FRQVWUXFWLQJFRQVFLRXVO\LQDX WKHQWLF ERGLHV LQ SHUIRUPDQFH 7HOHYLVLRQV SODVPD VFUHHQV DQG PLFURSKRQHVRQPHWDOVWDQGVSUROLIHUDWH DOORZLQJWKHSHUIRUPHUVWR GHPRQVWUDWHWKHZRUNRIDFWLQJWKURXJKWKHREMHFWVRIWHFKQRORJ\ DQGXVLQJWHFKQRORJ\WRSURGXFHDPHGLDWHGDQGGLVWRUWHGYLVLRQRI WKHKXPDQERG\ 7KHFRPSDQ\DUHDOVRIDPRXVIRUWKHLUFRQWURYHU VLDO DSSURSULDWLRQ RI SHUIRUPDQFH VW\OHV DQG ¶ERGLHV· -DSDQHVH WKHDWUH WHFKQLTXHV EODFNIDFH PLQVWUHOV\ YDXGHYLOOH DQG EXUOHVTXH FRQWHPSRUDU\ GDQFH DQG SRSXODU ILOP 7KH *URXS HPSKDVLVH DQG H[DJJHUDWH WKH DUWLILFLDOLW\ RI WKHVH DSSURSULDWHG UDFLDO KLVWRULFDO DQG JHQGHUHG¶ERGLHV· DQG IRUHJURXQG WKHLU RZQ LQDELOLW\ WR RIIHU QHZ LGHQWLWLHV LQ SODFH RI WKH ROG UHSUHVVLYH RQHV 7KH\ FRQWHVW
(/,=$%(7+/(&2037(
VWHUHRW\SHV WKURXJK WKH VXEYHUVLYH DQG K\SHUEROLF FRQIRUPLW\ WR WKHPLQSHUIRUPDQFH :KLOH WKH FRPSDQ\ DSSURDFKHV WKHDWULFDOLW\ DV D FHQWUDO FKDUDF WHULVWLF RI LGHQWLW\ WKHUH LV DOVR D VHQVH RI UHJUHW LQ WKHLU ZRUN WKDW ERGLHVDUHLQHYLWDEO\PHGLDWHGWKURXJKUHSUHVHQWDWLRQ 7KLVLVVKRZQ LQ WKH NLQG RI¶ERGLHV· WKH FRPSDQ\ FKRRVHV WR H[SORUH LQ SHUIRU PDQFH 7KH :RRVWHU *URXS KDYH LPSOLFDWHG WKH WKHDWUH LQ WKH IRUPDWLRQRIXQHTXDOKLHUDUFKLHVRILGHQWLW\E\OLQNLQJWKHWUDGLWLRQV RI EODFNIDFH PLQVWUHOV\ ZLWK WKH UDFLVP RI $PHULFDQ VRFLHW\ E\ LQWHUURJDWLQJWKHUHGXFWLYHUHSUHVHQWDWLRQRIIHPLQLQLW\LQFDQRQLFDO SOD\WH[WV DQG E\ H[DPLQLQJ WKH ZD\V LQ ZKLFK WHFKQRORJ\ FDQ FRQVWUXFW DQG PHGLFDOLVH WKH KXPDQ ERG\ LQ SRVW$,'6 FXOWXUH 7KH FRPSDQ\·V FRPSOH[ DSSURDFK WR WKH UHSUHVHQWDWLRQ RI LGHQWLW\ KDV EHHQ DUWLFXODWHG LQ D QXPEHU RI GLIIHUHQW ZD\V H[SORUDWLRQ RI EODFNIDFHPLQVWUHOV\LQZRUNVVXFKDV5RXWH /6' «-XVW WKH +LJK 3RLQWV« 7KH (PSHURU -RQHV DQG 7KH +DLU\ $SH HQJDJHPHQW ZLWK -DSDQHVH VWDJLQJ WHFKQLTXHV DQG FRVWXPH LQ SURGXFWLRQV VXFK DV %UDFH 8S DQG )LVK 6WRU\ DQG XVH RI WHFKQRORJ\ DV D PHDQV RI PHGLDWLQJ DQG PHGL WDWLQJRQJHQGHULQSURGXFWLRQVVXFKDV+RXVH/LJKWV DQG7R
(/,=$%(7+/(&2037(
IDFH ZDV D PLPHWLF UHQGHULQJ RI ¶UHDO· EODFNQHVV 5DFH EHFDPH D VRFLDO DQG WKHDWULFDO SHUIRUPDQFH DQG WKH IDFW WKDW WKH UHVW RI WKH SHUIRUPHUV· ERGLHV ZHUH OHIW XQSDLQWHG PDLQWDLQHG WKLV HIIHFW UHPLQGLQJ WKH DXGLHQFH WKDW WKH DFWRUV· FRORXUHG IDFHV ZHUH D WKHDWULFDO UDWKHU WKDQ D ELRORJLFDO FRQVWUXFW %\ GLVORFDWLQJ FRORXU IURP UDFH DQG VKRZLQJ UDFLDO LGHQWLW\ WR EH FRQVWUXFWHG IURP D VHULHV RI JHVWXUDO DQG YRFDO VLJQV UDWKHU WKDQ EHLQJ LQQDWH WR WKH FRORXUHGERG\ WKH:RRVWHU*URXSVKRZHGWKHUDFLDOERG\WRKDYH EHHQ SDUWO\ SURGXFHG WKURXJK WKHDWUH SUDFWLFH %ODFNIDFH PLQVWUHOV\ZDVQRWFULWLTXHGDVDQ¶LQDFFXUDWH· UHIOHFWLRQRIUDFH EXW ZDV VKRZQ WR EH D GHHSO\ DQG WUDJLFDOO\ IRUPDWLYH SHUIRUPDQFH SUDFWLFHZKLFKKDVVKDSHGWKHFRQWRXUVRIZKLWHDQGEODFNLGHQWLW\ LQ $PHULFDQ VRFLHW\ /H&RPSWH·V SURGXFWLRQ LQWHUURJDWHG WKH ZD\V LQ ZKLFK UDFH LV IRUPHG RQ WKH VWDJH DQG LQ WKH DXGLHQFH XQHDUWKLQJ WKH ZD\V LQ ZKLFK 2·1HLOO·V WH[W ² DQG SRWHQWLDOO\ KHU RZQ SHUIRUPDQFH ZRUN ² FRXOG PHGLDWH KRZ VSHFWDWRUV UHODWHG WR UDFLDOLGHQWLW\ 7KH SURGXFWLRQ HFKRHG (ULF /RWW·V REVHUYDWLRQ RI WKH IRUPDWLYH HIIHFWVRIEODFNIDFHPLQVWUHOV\ ,W ZDV KDUG WR VHH WKH UHDO WKLQJ ZLWKRXW EHLQJ UHPLQGHG HYHQXQIDYRXUDEO\RIWKHFRS\ WKH¶FRYHUYHUVLRQ· WKDWHIIHF WLYHO\ GLG LWV ZRUN RI FXOWXUDO FRYHUDJH 1RU MXVW DV VXUHO\ FRXOGWKHFRS\EHVHHQZLWKRXWUHPLQGLQJRQHRIWKHUHDO WKLQJ 7KH :RRVWHU *URXS·V WKHDWULFDO LQWHUURJDWLRQ RI EODFNIDFH DQG ZKLWHIDFHGLGWKHLPSRUWDQWZRUNRIGHVWDELOLVLQJUDFLDOELQDULHVE\ PDNLQJ QRW RQO\ EODFNQHVV EXW DOVR ZKLWHQHVV VWUDQJH RQ VWDJH +RZHYHU WKHFRPSDQ\KDVEHHQFULWLFLVHGIRULWVDSSURSULDWLRQRID UDFLVW WKHDWUH IRUP DQG VRPH FULWLFV KDYH UHMHFWHG WKHLU ZRUN DV IRUPDOLVW H[SHULPHQWDWLRQ ZKLFK KDV OLWWOH WR GR ZLWK UDFH DV OLYHG H[SHULHQFH 7KH *URXS·V ZRUN WHHWHUV RQ WKH EULQN EHWZHHQ VXEYHUWLQJ DQG DIILUPLQJ WKH VWHUHRW\SHV WKH\ LQYHVWLJDWH DQG WKH\ KDYH DWWUDFWHG FRQWURYHUV\ IRU QRW UHMHFWLQJ PLQVWUHOV\ RXWULJKW LQ WKHLU ZRUN 7KH FRPSDQ\·V LQYHVWLJDWLRQ RI UDFLDO VWHUHRW\SHV EHOLHV WKHLU XQHDVLQHVV ZLWK WKH IRUPDWLYH HIIHFWV RI SHUIRUPDQFH ZKLOH DOVRUXQQLQJWKHULVNRIDIILUPLQJWKHUDFLDOLQHTXDOLWLHVWKH\LQWHUUR JDWH 7KH FRPSOH[ DQG SUREOHPDWLF ZD\V LQ ZKLFK /H&RPSWH DQG 7KH :RRVWHU *URXS LQYHVWLJDWH LGHQWLW\ LV DOVR DSSDUHQW LQ 7R
(/,=$%(7+/(&2037(
OD\HUHG ZLWK DQG LQWHUUXSWHG E\ WHFKQRORJLFDO ¶PDVNV· GLVMRLQWHG YRLFHRYHUV ERGLHV ¶PDGH VWUDQJH· DQG FRQWHPSRUDU\ GDQFH WR SURYLGH D PHGLWDWLRQ RQ WKH FRQWHPSRUDU\ IDVFLQDWLRQ ZLWK LPDJH ERG\DQGFHOHEULW\LQ:HVWHUQFXOWXUH 5DFLQH·VQHRFODVVLFDOWUDJHG\ RILOOHJLWLPDWHORYHZDVWUDQVIRUPHGLQWRDFRQWHPSRUDU\WUDJHG\RI WKH PHGLD DJH /H&RPSWH DOVR LQWHUURJDWHG 5DFLQH·V WH[W IRU LWV GHHSO\SUREOHPDWLFYLVLRQRIIHPDOHVH[XDOLW\ DQGIRUHJURXQGHG WKH REMHFWLILFDWLRQ RI WKH IHPDOH ERG\ LQ 5DFLQH·V SOD\ 7HFKQRORJ\ FHQWUDO WR WKH :RRVWHU *URXS·V DHVWKHWLF SUDFWLFH EHFDPH D WUDS LQ WKLV SURGXFWLRQ PHGLDWLQJ DQG FRQILQLQJ IHPDOH VXEMHFWLYLW\ LQ SHUIRUPDQFH %RWK 9DON DV 3KqGUH DQG )UDQFHV 0F'RUPDQG DV 2HQRQH ZRUH GLVWUHVVHG VHYHQWHHQWKFHQWXU\ VW\OH FRUVHWV EXW WKHLU HOERZV ZHUH WLHG WR WKHLU FRUVHWV JLYLQJ WKHP OLPLWHG PRYHPHQW LQ WKHLU XSSHU ERG\ 9DON·V FRUVHW KDG WZR PHWDO KRRSV RQ LWV EDFN ZKLFK KHU VHUYDQWVXVHGWRPRYHKHUZKLOHRQVWDJH SODFHKHULQYDULRXVSRVL WLRQVDQGVLWKHULQWRDEDWKFKDLU ZKHUHXSRQWKH\DWWHQGHGWR KHU ZLWK HQHPDV DQG FRORVWRP\ EDJV KHOSLQJ KHU WR GHIHFDWH DQG XULQDWH 7KH VSHFWDFOH RI WKH IHPDOH ERG\ UHQGHUHG KHOSOHVV E\ WKH FRQVWULFWLQJHIIHFWVRIPLVRJ\Q\ZDVIXUWKHUPDLQWDLQHGE\WKH IDFW WKDWDFWRU6FRWW6KHSKHUGVSRNHDOORI3KqGUH·VOLQHV OHDYLQJ9DOND VLOHQW DQG SK\VLFDOO\ KHOSOHVV ILJXUH PRXWKLQJ ZRUGV VSRNHQ E\ D PDOH YRLFH 7KH XVH RI YLGHR FRQWLQXHG WKH SURGXFWLRQ·V OLQN EHWZHHQ HQWUDSPHQW DQG VSHFWDFOH E\ YLVXDOO\ VSOLFLQJ SHUIRUPHUV· ERGLHV LQ KDOI RQ WKH VFUHHQV IRUFLQJ WKH DFWRUV WR PLPLF ILOP RI WKHLU RZQ ERG\ SDUWV 9DON·V ERG\ EHFDPH D VSHFWDFOH WR KHUVHOI DV VKH PLPHG WR YLGHR IRRWDJH RI KHU IHHW ZKLFK FRUUHVSRQGHG ZLWK 3KqGUH·VERG\DVDVSHFWDFOHRIWUDJHG\DQGIHPLQLQLW\ LQFDSDEOHRI DQ\JUHDWHUSK\VLFDODFWLRQWKDQEHLQJORRNHGXSRQ 7KHSURGXFWLRQ·VPHGLDWLRQRISK\VLFDOLGHQWLW\H[WHQGHGDOVRWR WKH PDOH SHUIRUPHUV ZLWK $UL )ODNLRV DV +LSSRO\WXV IUHH]LQJ LQWR YDULRXV *UHHN VWDWXHOLNH SRVHV DQG 'DIRH DV 7KHVHXV HVWDEOLVKLQJ KLV PDVFXOLQLW\ WKURXJK KLV ERG\EXLOGHU PRYHPHQWV DQG WKH JURWHVTXHGLVWRUWLRQVRIKLVWRUVRDQGULEFDJH :KLOHIHPLQLQLW\ZDV WKH IRFXV RI WKLV SURGXFWLRQ PDVFXOLQLW\ ZDV DOVR VKRZQ WR EH WUDSSHG LPPRELOLVHG E\ WKH HIIHFWV RI PHGLDWLRQ $OWKRXJK WKH *URXSFULWLTXHG5DFLQH·VFRQVWUXFWLRQRIJHQGHUUROHV WKH\GLGQRW RIIHU DQ DOWHUQDWLYH WR WKHVH UROHV 1HYHUWKHOHVV WKH K\SHUEROLF QDWXUH RI WKH *URXS·V SHUIRUPDQFHV PHDQW WKDW WKH SURGXFWLRQ RIIHUHGWKHSRVVLELOLW\RIGRLQJJHQGHU¶ZURQJ· DQGGHQDWXUDOLVLQJLWV VHHPLQJ KHJHPRQLF LQHYLWDELOLW\ *HQGHU VWHUHRW\SLQJ ZDV UHVLVWHG WKURXJK LWV ZKROHVDOH HQGRUVHPHQW LQ 7R
(/,=$%(7+/(&2037(
ZKLFK OLNHWKHFRPSDQ\·VXVHRIEODFNIDFHPLQVWUHOV\ UXQVWKHULVN RIPDLQWDLQLQJWKHYDOXHVLWVHHNVWRXQGHUPLQH 7KH:RRVWHU*URXSVKRZWKHPHGLDWHGQDWXUHRILGHQWLW\WREHD WUDJLF LQHYLWDELOLW\ :KLOH WKH\ H[DPLQH WKH WKHDWUH·V UROH LQ WKH IRUPDWLRQ RI LGHQWLW\ WKH LGHQWLWLHV WKH\ H[SORUH DUH IUHTXHQWO\ QHJDWLYH RQHV 5HSUHVHQWDWLRQ LV LPSOLFDWHG LQ SURGXFLQJ WKH JURWHVTXHPDVNVRIPLQVWUHOV\ WKHUHSUHVVLYHDQGFRQILQLQJLPDJHVRI JHQGHU WKH PHGLFDOLVHG ERGLHV RI WKH SRVW$,'6 HUD DQG WKH GLVWRUWHG ERGLHV RI WKH FHOHEULW\ DJH 2QH FULWLF KDV GHVFULEHG WKH FRPSDQ\·VIDPRXVXVHRIPXOWLPHGLDHIIHFWVRQWKHVWDJHDV¶UHOXF WDQWO\ WHFKQRFHQWULF· DQG WKH FRPSDQ\ FRXOG DOVR EH VDLG WR EH ¶UHOXFWDQWO\ WKHDWUHFHQWULF· :KLOH WKH *URXS VKRZ LGHQWLW\ WR EH LQHYLWDEO\ FRQVWUXFWHG DQG PHGLDWHG WKURXJK UHSUHVHQWDWLRQ WKH G\VWRSLDQ HIIHFWV RI WKHLU ZRUN FRPH IURP WKH VHQVH WKDW WKH\ PRXUQDQGGHFU\WKLVIDFW 7KH:RRVWHU*URXSVKRZWKHDWULFDOLW\WR EH WKH RQO\ DYDLODEOH PRGH RI LGHQWLW\ LQ D PHGLDWHG DQG SRVW LQGXVWULDOXQLYHUVH 1RQHWKHOHVV WKHUHLVDQHYHUSUHVHQWVHQVHRIORVV LQWKHLUWKHDWULFDOZRUOG DVHQVHRIGHVSDLUDWWKHLUUHVLVWLEOHHIIHFWV RI UHSUHVHQWDWLRQ 7KH :RRVWHU *URXS VKRZ WKHDWULFDOLW\ WR EH DQ LQHVFDSDEOHWUDJHG\ 1RWHV
7KH 'HDWK 2I &KDUDFWHU 3HUVSHFWLYHV 2Q 7KHDWHU $IWHU 0RGHUQLVP %ORRPLQJWRQDQG,QGLDQDSROLV ,QGLDQD8QLYHUVLW\3UHVV /RYH $QG 7KHIW %ODFNIDFH 0LQVWUHOV\ $QG 7KH $PHULFDQ :RUNLQJ &ODVV 2[IRUG 2[IRUG8QLYHUVLW\3UHVV .DOE -RQDWKDQ ¶7KHDWHU· 1HZ
)XUWKHUUHDGLQJ $URQVRQ $UQROG $PHULFDQ $YDQW*DUGH 7KHDWUH D +LVWRU\ /RQGRQ 5RXWOHGJH $XVODQGHU 3KLOOLS 3UHVHQFH DQG 5HVLVWDQFH 3RVWPRGHUQLVP DQG &XOWXUDO 3ROLWLFV LQ &RQWHPSRUDU\ $PHULFDQ 3HUIRUPDQFH 0LFKLJDQ 0LFKLJDQ 8QLYHUVLW\3UHVV %XWOHU -XGLWK *HQGHU7URXEOH )HPLQLVPDQGWKH6XEYHUVLRQRI,GHQWLW\ 1HZ
-,06+$50$1
-,06+$50$1 ²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²DFWRUV GLUHFWRUV ZULWHUV GHVLJQHUV²DQG ZLWKWKH/LJKWKRXVH&RPSDQ\LQ$GHODLGH SURYLGLQJ D VLQFH XQDWWDLQHG PRGHO IRU WKHDWUHPDNLQJ LQ $XVWUDOLD 7R ZULWH DERXW -LP 6KDUPDQ LV QHFHVVDULO\ WR ZULWH DERXW KLV UHODWLRQVKLSZLWKWKHGUDPDVRI3DWULFN:KLWHDQGWKHGHVLJQZRUN RI%ULDQ7KRPVRQ²6KDUPDQKLPVHOISLQSRLQWVKLV UHYLYDORI :KLWH·V HSLF SOD\ $ &KHHU\ 6RXO IRU WKH QHZO\ IRUPHG 6\GQH\ 7KHDWUH&RPSDQ\DVDGHILQLQJPRPHQWERWKLQKLVRZQFDUHHUDQG IRU$XVWUDOLDQWKHDWUHLQJHQHUDO 7KH¶FKHHU\VRXO· RIWKHSOD\·VWLWOH 0LVV 'RFNHU ZDV EDVHG RQ D QHLJKERXU RI :KLWH·V ² D GRJRRGHU VSUHDGLQJ GLVDVWHU WKURXJK D ILFWLRQDO $XVWUDOLDQ VXEXUE $ 0HOERXUQHSURGXFWLRQLQWKHHDUO\ V VWULYLQJIRUDQDWXUDOLVWLF UHDOLVDWLRQ EDVHG RQ WKH SOD\ZULJKW·V HODERUDWH VWDJH GLUHFWLRQV KDG IORXQGHUHG VWUXJJOLQJWRFRPHWRWHUPVZLWKERWKWKHSOD\·VWKHPH ² D WUDJLF PHGLWDWLRQ RQ WKH GHVWUXFWLYH SRZHU RI JRRG WDNHQ WR PLOLWDQWSURSRUWLRQV²DQGZLWK:KLWH·VSRHWLFWUHDWPHQWRIDGDUNO\ H[SUHVVLRQLVWLFSV\FKRORJLFDOWHUUDLQ 7KHYHQXHIRU6KDUPDQ·VSURGXFWLRQ WKH'UDPD7KHDWUHRIWKH 6\GQH\ 2SHUD +RXVH RIIHUHG D EURDG VKDOORZDSURQHG VWDJH LQ D SDQDYLVLRQ SURVFHQLXP RSHQLQJ IDFLQJ D VWHHSO\ UDNHG DXGLWRULXP RIKLJKEDFNHGVHDWV ,QWHQGHGRULJLQDOO\DVDFLQHPD WKHVSDFH ZDV FRQYHUWHG WR DFFRPPRGDWH PDLQVWDJH WKHDWUH DQG OLPLWHG E\ QDUURZZLQJVDQGDZNZDUGVLJKWOLQHV KDGDUHSXWDWLRQDVDGLIILFXOW VSDFH LQ ZKLFK WR ZRUN 6KDUPDQ DQG 7KRPVRQ FKRVH WR LJQRUH :KLWH·VVWDJLQJVXJJHVWLRQV FRQIURQWLQJWKHDXGLHQFHLQVWHDGZLWKD GURSSHGILUHFXUWDLQ XSRQZKLFK
-,06+$50$1
ZDVSDLQWHGWKHFDVWOLVWOLNHDKXJHYDXGHYLOOHSRVWHU :KHQ LW URVH WKH DFWRUV ZHUH GRWWHG DERXW D EULOOLDQWO\ OLW VWDJH EDUH H[FHSW IRU D SLDQR 7KHUH ZDV D VRIW FKRUG DV DOO WKH LQKDELWDQWV RI 6DUVDSDULOOD H[FHSW 0LVV 'RFNHU WXUQHG WR IDFH WKH DXGLHQFH 7KH\ VWRRG VWRFN VWLOO IRU WKH VHFRQG FKRUG DQGRQDWKLUG5RE\Q1HYLQ·V0LVV'RFNHUWXUQHG KHUIDFHORFNHGLQDVLOHQWVFUHDP $ KDOIFXUWDLQ FURVVHG WKH H[SDQVH RI WKH SURVFHQLXP GUDZQ E\ 1HYLQWRFKDQJHVFHQHV 7KHVLGHRIWKHVWDJHZDVOLQHGZLWKEHQFKHVXVHGE\DFWRUV ZKHQ QRW GLUHFWO\ LQYROYHG LQ WKH DFWLRQ « D %UHFKWLDQ HPSKDVLV RQ WKHDWULFDOLW\ RI SHUIRUPDQFH DOORZHG QRQ QDWXUDOLVWLFHOHPHQWVRIWKHSOD\WREHFRPHDQDWXUDOSDUWRI OLIHRQVWDJH DVZHOODVKHLJKWHQLQJWKHDXGLHQFH·VDZDUHQHVV RI ODQJXDJH DQG FKDUDFWHULVDWLRQ 7KH DFWRUV RIWHQ SOD\HG GLUHFWO\WRWKHDXGLWRULXP GLVFXVVLQJDFWLRQDQGHYHQWVLQD WHFKQLTXH ZKLFK SURGXFHG WKH QRWLRQ RI DQ LPDJLQHG UHDOLW\ 7KHZRUOGRIWKHSOD\ZDVDVUHDODQGDVLPDJLQHG DV RUGLQDU\DQGDVIDQWDVWLF DVRQO\OLIHLQWKHWKHDWUHFDQEH $QGVR6KDUPDQEURXJKW%UHFKW WRPDLQVWDJH$XVWUDOLDQWKHDWUH² QRWDGLGDFWLF DXVWHUH%UHFKW EXWDULFKO\WKHDWULFDO%UHFKW %UHFKW YLD WKH FDUQLYDO WKH IDQWDVWLFDO DQG WKH SRHWLF ,Q WXUQLQJ KLV JD]H RXWZDUGV WRZDUGVWKHFRQWLQHQWDO(XURSHDQWKHDWUHRI*HQHW /RUFD :HGHNLQGDQG6WULQGEHUJ 6KDUPDQZDVVHHNLQJDEUHDNZLWKZKDW KH SHUFHLYHG DV DQ $QJORFHQWULF LQVXODULW\ GRPLQDWLQJ WKH DQWLSRGHDQVWDJH DOOWKHEHWWHUWRGHWHUPLQHDQ$XVWUDOLDQYRLFH WR FUHDWH DQ LQGLJHQRXV WKHDWUH LQ 'DYLG 0DUU·V ZRUGV RI¶P\WK DQG PDJLFZLWKDGDVKRIYDXGHYLOOH· 6KDUPDQDQG:KLWHPHWLQ :KLWHKDGIRXQGKLPVHOI¶OHG EOLQGIROGHG RQH QLJKW· WR D¶UDWKHU FUXPP\· WKHDWUH WR ZDWFK WKH ¶WRSLFDOUHYXH7HUURU$XVWUDOLV ZKLFKDUHVSHFWHGFULWLFKDGSDQQHG· 7KHVKRZZDV LQ:KLWH·VZRUGV DQ¶DEUDVLYH VKLWVOLQJLQJ· SROLWLFDO FDEDUHWLQWRZKLFKWKHDXGLHQFHZDVKHUGHGWKURXJKVKHHSUDLOLQJV ¶ZKLOHWKHFDVWVWRRGRQVWDJHEDDLQJWKHLUZD\WKURXJKWKHQDWLRQDO DQWKHP· 7KHGLUHFWRUZDV-LP6KDUPDQ QHZO\JUDGXDWHGIURPWKH 1DWLRQDO ,QVWLWXWH RI 'UDPDWLF $UW 1,'$ LQ 6\GQH\ ([FLWHG E\ WKHH[SHULHQFH :KLWHZURWHDUHEXWWDOWRWKHQD\VD\LQJFULWLF·VSDQ DQG VRPH PRQWKV ODWHU ZDV FROODUHG RXWVLGH D UHFRUG VKRS E\¶D VFUXII\\RXQJPDQLQ7VKLUW MHDQV DQGVQHDNHUV· ,WZDV6KDUPDQ
-,06+$50$1
ZDQWLQJWRWKDQN:KLWHIRUGHIHQGLQJKLVZRUNLQWKHSUHVV 7KH\ H[FKDQJHG DZNZDUG VPDOO WDON DQG :KLWH GLG QRW H[SHFW WKDW WKH WZRRIWKHP²WKHZHOOHVWDEOLVKHG PLGGOHDJHGOLWHUDU\ILJXUH DQG WKH¶ZRQGHUNLG RI $XVWUDOLDQ WKHDWUH LGRO RI WKH \RXQJ· ² ZRXOG FURVV SDWKV DJDLQ $V .DWKHULQH %ULVEDQH QRWHV KRZHYHU 6KDUPDQ ZDV¶D PDQ DV SUHRFFXSLHG DV :KLWH ZLWK WKH WDVN RI FRPPXQL FDWLQJLQSK\VLFDOWHUPVWKHODQGVFDSHRIWKHLPDJLQDWLRQ· 6KDUPDQ·V VWDU ZDV DOUHDG\ RQ WKH ULVH ,Q KH GLUHFWHG 'RQ *LRYDQQL VWDJHGRQDKXJHFKHTXHUERDUG IRUWKH(OL]DEHWKDQ7UXVW 2SHUD &RPSDQ\ DOLHQDWLQJ FRQVHUYDWLYH DXGLHQFHV ZKLOH DWWUDFWLQJ WKH \RXQJ 7KH HQWUHSUHQHXU +DUU\ 0 0LOOHU OLNHG ZKDW KH VDZ DQGLQYLWHG6KDUPDQWRGLUHFWWKHORFDOSURGXFWLRQRI +DLU $PRQJ WKHOHJDFLHVRIWKDWZRUNZDV6KDUPDQ·VVXEVHTXHQWFRPPLWPHQWWR ¶PXOWLFXOWXUDO· FDVWLQJ DWKHPHWKDWDOVRGUHZKLPWR*HQHW·VZULW LQJV +H FRXQWV DPRQJ KLV FRQWULEXWLRQV WR $XVWUDOLDQ WKHDWUH KLV ZLOOLQJQHVV WR DOORZ QRQ$QJOR6D[RQ DFWRUV WR SOD\ D UDQJH RI UROHV IURP 0DU\ 0DJGDOHQH WR $ULHO +DLU ZDV D WUHPHQGRXV VXFFHVV IROORZLQJSURGXFWLRQVLQ0HOERXUQH 7RN\RDQG%RVWRQ LQ 0LOOHU DQG 6KDUPDQ DJDLQ FROODERUDWHG RQ WKH $XVWUDOLDQ SUHPLHUHRI-HVXV&KULVW6XSHUVWDU %ULDQ7KRPVRQGHVLJQHG PDUNLQJ WKHEHJLQQLQJRIZKDWFRPPHQWDWRU0DUWLQ7KRPDVKDVFDOOHG¶WKH VWURQJHVW GLUHFWRU²GHVLJQHU SDUWQHUVKLS LQ $XVWUDOLDQ WKHDWUH· 7KRPVRQ·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·%ULHQ WR SURGXFH 7KH 5RFN\ +RUURU 6KRZ D VDWLUH RI %JUDGH VFLHQFH ILFWLRQ VWDJHG 8SVWDLUV DW 7KH5R\DO&RXUW )URPWKLVSURGXFWLRQ RIFRXUVH FDPHWKHIHDWXUH ILOP7KH5RFN\+RUURU3LFWXUH6KRZ GLUHFWHGE\6KDUPDQ ,WLV IRU WKLV ZRUN WKDW 6KDUPDQ LV PRVW UHFRJQLVHG LQWHUQDWLRQDOO\ 6WUDQJHO\ HQRXJK LW ZDV WKLV PDQ WKH FRRO LQWRXFK¶LGRO RI WKH \RXQJ· ZKRZDVWRGRMXVWLFHWR3DWULFN:KLWH·VSOD\V 5HWXUQLQJ WR $XVWUDOLD 6KDUPDQ GLUHFWHG :KLWH·V 7KH 6HDVRQ DW 6DUVDSDULOOD IRU WKH 2OG 7RWH WKH VWDWHVXEVLGLVHG WKHDWUH ZRUNLQJLQWKH6\GQH\2SHUD+RXVH ,WVVXFFHVVSURPSWHG:KLWHWR
-,06+$50$1
VHW WR ZRUN RQ D QHZ SLHFH %LJ 7R\V GLUHFWHG E\ 6KDUPDQ WKH IROORZLQJ \HDU ZLWK 7KRPVRQ GHVLJQLQJ 7KH SURGXFWLRQ ¶ERUH UHVHPEODQFHV WR 7KH 5RFN\ +RUURU 6KRZ LQ WKH VRSKLVWLFDWLRQ RI LWV VWDJLQJ· ZURWH RQH FRPPHQWDWRU ¶:KLWH·V ODWH SOD\V KDYH LQFUHDV LQJO\EHFRPHOLNHKLJKOLWHUDU\SDUDOOHOVWR 7KH5RFN\+RUURU3LFWXUH 6KRZ « >LQWHJUDWLQJ@ DQ HOHPHQW RI KLJK FDPS YLVXDO ZLW· 3XEOLVKHG HGLWLRQV RI WKH WH[W LQWHJUDWHG 7KRPVRQ DQG 6KDUPDQ·V GHVLJQ LQWR WKH VWDJH GLUHFWLRQV $ SURGXFWLRQ RI 6WULQGEHUJ·V 'UHDPSOD\ DW 1,'$ IRU ZKLFK 6KDUPDQ KDG D PRXQGHG EHDFKVSLOOLQJRIIWKHVWDJHLQWRWKHDXGLHQFH VRDIIHFWHG:KLWHWKDW KHVHWDERXWGHGLFDWLQJKLVODWHPDVWHUSLHFH 7KH7Z\ERUQH$IIDLU WR -LP6KDUPDQ ,QWKHVHSURGXFWLRQV 6KDUPDQZDVWDSSLQJLQWRDYHLQRIWKHDWUL FDOLW\ DV IDU DV SRVVLEOH UHPRYHG IURP WKH¶UHS FRPSDQ\ VHWV· DQG QDWXUDOLVPWKDWZDVWKH2OG7RWH·VKRXVHVW\OH :KDW.UXVHUHDGDVD ¶KLJKFDPSYLVXDOZLW· 6KDUPDQZRXOGXQGHUVWDQGDVWKHHVVHQFHRI WKHDWULFDOLW\ WKDW DQ DXGLHQFH VHHV EHIRUH WKH\ OLVWHQ 6KDUPDQ VXJJHVWV WKDW KLV DFKLHYHPHQW LQ ZRUNLQJ LQ WKH QHZ JHQUH RI PXVLFDOWKHDWUHLQWKHHDUO\ VKDVWREHXQGHUVWRRGLQWHUPVRID %UHFKWLDQ UDWKHUWKDQ%URDGZD\PXVLFDOWUDGLWLRQ 6KDUPDQ·VZDV D JHVWLF WKHDWUH IURP WKH ILUVW DW OHDVW SDUWO\ RXW RI D UHJDUG IRU %UHFKW DQG DQ H[SUHVVLRQLVWLF OLQHDJH IURP 6KDNHVSHDUH WKURXJK 6WULQGEHUJ :HGHNLQG DQG 5HLQKDUGW WR %UHFKW EXW DOVR IURP D QXPEHURIRWKHULQIOXHQFHV DPRQJWKHPKLVIDVFLQDWLRQZLWK$VLDQ WKHDWUH GHYHORSHG GXULQJ D VWXG\ WRXU WR -DSDQ LQ WKH ODWH V 6KDUPDQFLWHVKLVRZQHDUO\H[SHULHQFHVRIPXVLFDOWKHDWUH KHWDONV RIEHLQJFDSWLYDWHGDVDWHHQDJHUE\D VSURGXFWLRQRI 2OLYHU DQG SHUKDSVPRVWVLJQLILFDQWO\ RIFDUQLYDODQGYDXGHYLOOH¶,JUHZXS· 6KDUPDQKDVZULWWHQ LQDZRUOGRIWUDYHOOLQJVLGHVKRZV FDUQLYDOV FLUFXVHV ER[LQJ WURXSHV &KLQHVH DFUREDWV DQG WHQWVKRZ YDXGHYLOOH « ER[LQJ PDWFKHV IRXJKW LQ VDZGXVWVWUHZQ WHQWV DQ DSSUR SULDWH SUHSDUDWLRQ IRU GLUHFWLQJ 6WULQGEHUJ &KLQHVH DFUREDWV LQ VLON S\MDPDV VSLQQLQJ SODWHV DQG WKHQ EDUH FKHVWHG OHDSLQJ WKURXJK KRRSV RI ILUH $OO WKLV QRQYHUEDO WKHDWUHFRQVWLWXWHGDNLQGRIGDQFH FRPPXQLFDWHGZLWKRXW ZRUGV EH\RQGZRUGV 7KLVLVDQRQOLWHUDU\SHUIRUPDQFHJHQHDORJ\ 6KDUPDQUHFDOOVWKH 6RUOLHIDPLO\·VWUDYHOOLQJWHQWVKRZV WKHPVHOYHVDKROGRYHUIURPWKH ERRPLQJ YDXGHYLOOH FLUFXLWV RI WKH ODWH QLQHWHHQWK FHQWXU\
-,06+$50$1
%HWZHHQ VFKRRO WHUPV 6KDUPDQ ZRUNHG IRU KLV IDWKHU GUXPPLQJ XSDXGLHQFHVIRUKLVIDWKHU·VER[LQJULQJVKRZ /LWWOHZRQGHUWKDWIRU KLV JUDGXDWLRQ SURMHFW IRU 1,'$ 6KDUPDQ SURSRVHG D 7KUHHSHQQ\ 2SHUD VWDJHG RQ D FDURXVHO UHYROYH VHHLQJ KLPVHOI RQH VXVSHFWV DV WKHVLGHVKRZRUJDQJULQGHU %UHFKW·V0RULWDW VLQJHU :KHQ WKH 2OG 7RWH IROGHG LQ 6KDUPDQ DQG 5H[ &UDPSKRUQ EURXJKWWRJHWKHUDQHQVHPEOHRIDFWRUVZLWKDYLHZWR SURGXFLQJ WKH 2OG 7RWH·V SODQQHG VHDVRQ RI QHZ $XVWUDOLDQ SOD\V 7KH QHZ FRPSDQ\ ZDV QDPHG IRU WKH PDUYHOORXV DUWGHFR FLQHPD WKH\ UHQWHG LQ (DVW 6\GQH\ 7KH 3DULV ,Q WKH VSLULW RI RSWLPLVP NLQGOHGE\WKHSURMHFW 6KDUPDQVSRNHRIKLVGHVLUHIRU¶DOHVV QDWX UDOLVWLF RU PRUH SRHWLF DQG PRUH LPDJLQDWLYH WKHDWUH· VRPHWKLQJ PRUH WKDQ ¶SHRSOH LQ VPDOO URRPV ZRUU\LQJ DERXW WKHPVHOYHV· 7KH ILUVW VHDVRQ ZDV WR LQFOXGH WH[WV E\ 'RURWK\ +HZLWW /RXLV 1RZUD 9LVLRQV DQG3DWULFN:KLWH $&KHHU\6RXO 7KHVHDVRQZDV DGLVDVWHU DXGLHQFHVVWD\HGDZD\LQGURYHV 7KHRSHQLQJSURGXFWLRQ ZDV+HZLWW·V3DQGRUD·V&URVV VHWLQDFRQVWUXFWLYLVWHQVHPEOH RIFDWZDONVDQGHOHYDWRUYHUWLFDOVSDFHVGRPLQDWHGE\D+ROO\ZRRG VLJQHVTXHOHWWHU¶3· 7KH 3DULV FRPSDQ\ FROODSVHG EXW QRW EHIRUH WKH LGHD RI D SHUPDQHQWHQVHPEOHRIDFWRUV DQG SOD\ZULJKWVGHGLFDWHGWRGHYHO RSLQJ D FRQWHPSRUDU\ $XVWUDOLDQ VHQVLELOLW\ KDG WDNHQ URRW 7KDW LGHD ZDV UHDOLVHG ZKHQ LQ 6KDUPDQ ZDV DSSRLQWHG $UWLVWLF 'LUHFWRU RI WKH 6WDWH 7KHDWUH &RPSDQ\ RI 6RXWK $XVWUDOLD ZKLFK KH SURPSWO\ UHQDPHG WKH /LJKWKRXVH &RPSDQ\ :RUNLQJ ZLWK D GR]HQDFWRUV WKUHHSOD\ZULJKWV :KLWH 1RZUDDQG6WHSKHQ6HZHOO DQG ODWHU DVVRFLDWHGLUHFWRU1HLO$UPILHOG 7KH/LJKWKRXVH·VILUVW VHDVRQZDV LQWKHZRUGVRIRQHFULWLF ¶QRWIRUWKHWULYLDOPLQGHGRU WKH IDLQWKHDUWHG· 5HYHDOLQJO\ 6KDUPDQ UHIXVHG WR LQFOXGH SRSXODU IDYRXULWH 'DYLG :LOOLDPVRQ·V 7KH 3HUIHFWLRQLVW DW WKH /LJKWKRXVH LQ DVVHUWLQJ WKDW¶ZH DUH QRW ORRNLQJ IRU SURYHQ ER[RIILFH VPDVKHV ² ZH DUH ORRNLQJ WR FUHDWH RXU RZQ· SOD\V SXUVXLQJ¶DQ HSLF WKHDWULFDOLW\ DNLQ WR WKDW RI (OL]DEHWKDQ WKHDWUH 'RPHVWLFFRPHG\LVQRWRXUIRUWH· $FNHUKROW ,QVWHDG KH SUHPLHUHG QHZ ZRUN E\ :KLWH 1HWKHUZRRG DQG 1RZUD 5R\DO 6KRZ 6XQULVH (XURSHDQ ZRUN VXFK DV %UHFKW·V 0RWKHU &RXUDJH DQG /RUFD·V %ORRG :HGGLQJ DQG D 6KDNHVSHDUH $ 0LGVXPPHU 1LJKW·V 'UHDP )RU WZR VHDVRQV LQGXOJHGE\WKHJHQHURXVIXQGLQJRIWKH6RXWK$XVWUDOLDQ0LQLVWU\ RI WKH $UWV WKH HQVHPEOH ZDV DEOH WR JHQHUDWH ZRUN¶RI D VFDOH FRPSOH[LW\ DQG DPELWLRQ VHHQ QHLWKHU EHIRUH QRU VLQFH RQ $XVWUDOLDQVWDJHV·
$11(%2*$57
1RWHV
0DUU ' 3DWULFN:KLWH $/LIH 6\GQH\ 5DQGRP+RXVH $FNHUKROW 0 SHUVRQDOFRUUHVSRQGHQFH 0DUU :KLWH 3 )ODZV LQ WKH *ODVV $ 6HOISRUWUDLW /RQGRQ -RQDWKDQ &DSH ,ELG 0DUU ² :KLWH ,ELG %ULVEDQH . ¶)RUHZRUG· WR3DWULFN:KLWH &ROOHFWHG3OD\V9ROXPH 6\GQH\ &XUUHQF\3UHVV 7KRPDV 0 ¶%ULDQ 7KRPVRQ 3LFWXULQJ WKH 6WDJH V · 1HZ 7KHDWUH $XVWUDOLD ² .UXVH $ ¶3DWULFN :KLWH·V /DWHU 3OD\V· LQ +ROORZD\ 3HWHU HG &RQWHPSRUDU\$XVWUDOLDQ'UDPD UHY HGQ 6\GQH\ &XUUHQF\3UHVV 6KDUPDQ - ¶,Q WKH 5HDOP RI WKH ,PDJLQDWLRQ $Q ,QGLYLGXDO 9LHZRI 7KHDWUH· $XVWUDODVLDQ'UDPD6WXGLHV ² 6HH :DWHUKRXVH 5 )URP 0LQVWUHO 6KRZ WR 9DXGHYLOOH 7KH $XVWUDOLDQ 3RSXODU 6WDJH ² .HQVLQJWRQ 16: 1HZ 6RXWK :DOHV8QLYHUVLW\3UHVV 6KDUPDQGLUHFWHG7KUHHSHQQ\2SHUD IRUWKH2OG7RWH7KHDWUH&RPSDQ\ LQ ² WKH ILUVW XVH RI WKH 'UDPD 7KHDWUH DW WKH 6\GQH\ 2SHUD +RXVH 5DGLF / 7KH 6WDWH RI 3OD\ 7KH 5HYROXWLRQ LQ WKH $XVWUDOLDQ 7KHDWUHVLQFHWKH V 5LQJZRRG 9LF 3HQJXLQ%RRNV 2WKHUZLVH XQDWWULEXWHG TXRWHV IURP 6KDUPDQ DUH IURP SHUVRQDO FRQYHUVDWLRQVZLWKWKHDXWKRU 5DGLF ,ELG
)XUWKHUUHDGLQJ $FNHUKROW 0 7KH&XUUHQF\&RPSDQLRQWR$XVWUDOLDQ7KHDWUH 6\GQH\ &XUUHQF\3UHVV &DUUROO ' $XVWUDOLDQ&RQWHPSRUDU\'UDPD 6\GQH\ &XUUHQF\3UHVV ,$10$;:(//
$11(%2*$57 ² ,QDFDUHHUWKDWVSDQVPRUHWKDQWKLUW\\HDUVDQGDKXQGUHGSURGXF WLRQV $QQH %RJDUW KDV GLVWLQJXLVKHG KHUVHOI ERWK DV DQ LQQRYDWLYH GLUHFWRU ZLWK HFOHFWLF LQWHUHVWV DQG DV D GHGLFDWHG WHDFKHU ZKR KDV FKDQJHG WKH FRXUVH RI WKHDWUH WUDLQLQJ LQ WKH 8QLWHG 6WDWHV 6KH JUHZ XS DV WKH GDXJKWHU RI D FDUHHU QDYDO RIILFHU ZKRVH FKDQJLQJ
$11(%2*$57
FRPPLVVLRQV OHG WR D SHULSDWHWLF IDPLO\ OLIH LQFOXGLQJ SHULRGV LQ 5KRGH,VODQG &DOLIRUQLD 9LUJLQLDDQG-DSDQ 6KHUHFHLYHGDQ0$LQ GLUHFWLQJ IURP 1HZ
$11(%2*$57
IURP%URDGZD\PXVLFDOVWXUQHGRQWKHLUKHDGVWR/DXULH$QGHUVRQ·V 6RQJVDQG6WRULHVIURP0RE\'LFN DQGWRFRQWHPSRUDU\JUDQG RSHUD DQG 'HYLVHG :RUNV RULJLQDO FROODJH SLHFHV ZRYHQ RXW RI WH[WV IURP D VLQJOH SOD\ZULJKW RU DURXQG D PDMRU FXOWXUDO ILJXUH PRVWO\ FUHDWHG ZLWK WKH PHPEHUV RI WKH 6,7, &RPSDQ\ 7KHVH JURXSLQJVUHIOHFWWKHWUHPHQGRXVKHWHURJHQHLW\RI%RJDUW·VGLUHFWLQJ LQWHUHVWV ZKLFK DUH XQLWHG E\ DQ LQVDWLDEOH LQWHOOHFWXDO FXULRVLW\ D FRPPLWPHQWWRHQVHPEOHZRUNDQGWKHVRYHUHLJQDFWRU WKHSXUVXLW RIDSHUPDQHQWFRPSDQ\WRFUHDWHQHZZRUN DQGDIDVFLQDWLRQZLWK WKHQDWXUHRIDUWLVWLFFUHDWLRQDQG HVSHFLDOO\ WKHDWULFDOSURFHVV 7KLV KDVOHGWRWKHFUHDWLRQRIRULJLQDOSLHFHVDERXWLPSRUWDQWWZHQWLHWK FHQWXU\ DUWLVWV 9LUJLQLD :RROI 2UVRQ :HOOHV /HRQDUG %HUQVWHLQ $QG\ :DUKRO 5REHUW :LOVRQ DPRQJ RWKHUV DQG WR DQ RQJRLQJ HQTXLU\LQWRWKHDHVWKHWLFFRQWUDFWZLWKWKHDXGLHQFH %RJDUW·V FRQFHUQ ZLWK WKH DXGLHQFH LV HYLGHQW LQ KHU SLRQHHULQJ VLWHVSHFLILF SLHFHV RI WKH ODWH V LQ ZKLFK VKH ZRXOG SHUVRQDOO\ JXLGHVSHFWDWRUVWRDYDULHW\RIERUURZHGVSDFHV LQFOXGLQJDQDEDQ GRQHGVFKRROKRXVH DGHWHFWLYHDJHQF\ D5RPDQLDQPHHWLQJKDOODQG ¶PDQ\ RWKHU SODFHV ULSH IRU LQYDVLRQ·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·VFKDUDFWHULVDWLRQRIKHUVHOIDVWKHILUVWDXGLHQFHIRUD SLHFHWKDWLVLQWKHSURFHVVRIEHLQJFUHDWHG 2QFHWKHJURXQGZRUN KDV EHHQ ODLG ² D WH[W VHOHFWHG RU DVVHPEOHG D FDVW FKRVHQ D GHVLJQ DQGJURXQGSODQPDSSHGRXW DQGFHUWDLQJURXQGUXOHVHVWDEOLVKHG ²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
$11(%2*$57
VFKL]RSKUHQLFV :KHQ DWWHQGDQFH GURSSHG VKH DFFHGHG WR WKH SDUWLFLSDQWV· ZLVKWRZRUNRQPXVLFDOFRPHGLHVDQGIRXQGWKDWWKH JURXSHUXSWHGZLWKH[FLWHPHQWDQGFUHDWLYLW\ 6KHSURYLGHGHQRXJK VWUXFWXUHWRFKDQQHOWKHLUHQHUJ\EDFNLQWRWKHZRUN DSUDFWLFHVKH KDV PDLQWDLQHG HYHU VLQFH %RJDUW H[SODLQV ¶7KDW LV KRZ , OHDUQHG WKDW LV ZKDW , GR , GRQ·W WU\ WR FRQWURO WKLQJV , ULGH ZKDW LV KDSSHQLQJ· LQWHUYLHZ ZLWK WKH DXWKRU $SULO 1HZ
$11(%2*$57
$URXQG DW 1HZ
//8Ì63$648$/
%RJDUW·VDVVRFLDWLRQRIKHU¶VFDYHQJHUPHQWDOLW\· ZLWKDQHVWEXLOGLQJ LPSXOVH SRLQWV WR WKH KHDUW RI KHU ZRUN 6KH¶VWHDOV·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
//8Ì63$648$/ ² $IWHUDOPRVWVHYHQ\HDUVLQ3DULV /OXtV3DVTXDOUHWXUQHGWRKLVQDWLYH &DWDORQLD LQ WR DVVXPH FRRUGLQDWLRQ RI WKH FLW\·V &LXWDW GHO 7HDWUH SURMHFW $ \HDU ODWHU KH UHSODFHG DFWRUGLUHFWRU /OXtV +RPDU DV FRDUWLVWLF GLUHFWRU RI WKH 7HDWUH /OLXUH WKH WKHDWUH KH KDG FR IRXQGHG LQ ZLWK D JURXS RI FROODERUDWRUV LQFOXGLQJ ZULWHUGUDPDWXUJ *XLOOHP-RUGL *UDHOOV GLUHFWRU 3HUH 3ODQHOOD DQG GHVLJQHU)DELj3XLJVHUYHU 7KHVHWZRHYHQWVVHUYHGWRFRQVROLGDWHD FRPPLWPHQWWRUHHVWDEOLVKLQJ3DVTXDODVDSHUPDQHQWIHDWXUHRIWKH &DWDODQWKHDWULFDOODQGVFDSH RIZKLFKKHKDGIRUPHGVXFKDFUXFLDO FRPSRQHQW GXULQJ WKH V DQG HDUO\ V EHIRUH DVVXPLQJ WKH DUWLVWLF GLUHFWRUVKLS RI 0DGULG·V &HQWUR 'UDPiWLFR 1DFLRQDO ² DQG 3DULV· 2GpRQ7KpkWUH GH O·(XURSH ZKHUH KH VXFFHHGHG*LRUJLR6WUHKOHU LQ
//8Ì63$648$/
$OWKRXJK SHUFHLYHG DV D GLUHFWRU ZKR LV PRVW FRPIRUWDEOH ZRUNLQJ ZLWKLQ WKH FODVVLFDO UHSHUWRU\ 3DVTXDO·V FDUHHU KDV EHHQ VKDSHG E\ HFOHFWLF GLUHFWRULDO FKRLFHV 7KHVH LQFOXGH GHYLVHG ZRUN /D VHWPDQD WUjJLFD &DPt GH QLW FRQWHPSRUDU\ ZULWLQJ *HQHW·V(OEDOFy 6DOYDGRU(VSULX·V8QDDOWUD)HGUD VLXV SODX DV ZHOO DV UHYHODWRU\ UHDGLQJV RI 6SDQLVK WZHQWLHWK FHQWXU\ZRUNVWKDWVXIIHUHGQHJOHFWGXULQJWKHGLIILFXOW\HDUV RIWKH )UDQFRUHJLPH ² $VL[WHHQ\HDUZRUNLQJUHODWLRQVKLSZLWK WKH3ROLVKWUDLQHGVFHQRJUDSKHU)DELj3XLJVHUYHUJHQHUDWHGWZHQW\ WKUHH SURGXFWLRQV WKDW LQ WKHLU SURYRFDWLYH UHLPDJLQLQJV RI WKHDWULFDO VSDFH WUDQVFHQGHG WKH SDUDPHWHUV RI EDURTXH GHVLJQ WKDW KDGKLWKHUWRGRPLQDWHGWKH6SDQLVKPDLQVWUHDPVWDJH 3DVTXDO DQG 3XLJVHUYHU ILUVW FROODERUDWHG LQ RQ /D VHWPDQD WUjJLFD D0QRXFKNLQHLQVSLUHGSURGXFWLRQGHYLVHGIURPLPSURYLVD WLRQDO ZRUN ZLWK VWXGHQWV IURP WKH (VFROD GH 7HDWUH GH O·2UIHR GH 6DQWVLQ%DUFHORQD ,WVHUYHGWRFKDOOHQJHFXVWRPDU\DFWRU²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·V UHVLGHQFLHV DW WKH 1DWLRQDO 7KHDWUHRI:DUVDZ ZKHUHKHDVVLVWHG$GDP+DQXV]NLHZLF]RQKLV SURGXFWLRQRI&KHNKRY·V3ODWDQRY DQG0LODQ·V3LFFROR7HDWUR ZKHUH KH ZRUNHG DV 6WUHKOHU·V DVVLVWDQW KLV FROODERUDWLRQV ZLWK 3XLJVHUYHU GHPRQVWUDWHG D IDVFLQDWLRQ ZLWK ZRUNLQJ LQ WKH URXQG DQG DQ H[WUDRUGLQDU\ FDSDFLW\ WR FRQMXUH PDJLFDO VWDJH PRPHQWVIURPHOHPHQWDOLQJUHGLHQWV +HFUHGLWVKLVWLPHLQ3RODQG DVFUXFLDOLQVKDSLQJKLVFDSDFLW\WR¶ZDWFKDQGREVHUYH· SHUIRUPHUV UHJLVWHULQJ¶WKHFRPPXQLFDWLRQEHWZHHQRQHDFWRUDQGDQRWKHU WKH WULDQJOH WKDW GHYHORSV EHWZHHQ WKH DFWRUV DQG WKH DXGLHQFH· +H FLWHV ERWK 6WUHKOHU DQG %URRN DV NH\ IRUPDWLYH LQIOXHQFHV RQ KLV ZRUN DFNQRZOHGJLQJ WKDW IURP WKH IRUPHU KH GLVFRYHUHG¶WKH LGHD RIWKHLOOXVLRQLVW WKHPDJLFLDQ RIPDNLQJZKDWGRHVQ·WH[LVWDSSHDU GRQH LQ D PDMHVWLF DUWLVWLF ZD\· DQG IURP WKH ODWWHU ¶VLPSOLFLW\ DXWKHQWLFLW\ SXULW\ ZKHUHHDUWKLVHDUWKDQGZRRGLVZRRG·
//8Ì63$648$/
$JODQFHDWWKH/OLXUH·VSURJUDPPLQJEHWZHHQ DQG RU HYHQ 3DVTXDO·V FKRLFH RI UHSHUWRLUH ZKLOH DUWLVWLF GLUHFWRU RI WKH &HQWUR 'UDPiWLFR 1DFLRQDO RU WKH 2GpRQ7KpkWUH GH O·(XURSH LQGLFDWHV D PDUNHG DWWUDFWLRQ WR ZRUNV WKDW GHI\ OLQHDU ORJLF DQG FRQFHUQWKHPVHOYHVZLWKWKHUHODWLRQVKLSEHWZHHQGLIIHULQJUHJLVWHUV RI UHDOLW\ 3DVTXDO KDV EHHQ FUHGLWHG ZLWK EULQJLQJ WR WKH VWDJH GUDPDWLF ZRUNV WKDW KDG SUHYLRXVO\ EHHQ EUDQGHG¶LPSRVVLEOH· DQG ODLQ GRUPDQW IRU GHFDGHV 7KHVH LQFOXGH 5DPyQ GHO 9DOOH,QFOiQ·V /XFHV GH ERKHPLD ZKLFK 3DVTXDO VHW RQ D EULOOLDQW PLUURUHG IORRU UHFRJQLVLQJ WKH H[LVWHQFH RI FRQIOLFWLQJ DUWLFXODWLRQV DQG GLVSHQVLQJ ZLWK SV\FKRORJLFDO LGHQWLW\ DV WKH VROH SLYRW RQ ZKLFK WKH LQWHUSUHWDWLRQ RI FKDUDFWHU WXUQV 7KH SUHPLHUHV RI )HGHULFR *DUFtD /RUFD·V¶XQNQRZQ· SOD\V (O S~EOLFR DQG &RPHGLD VLQ WtWXOR UHLQYHQWHGERWKZRUNVDVUHIOHFWLRQVRQWKHIXQFWLRQRI WKHDWUH DW D WLPH RI JUHDW VRFLDO DQG FXOWXUDO FKDQJH LQ 6SDLQ 4XHVWLRQLQJ SRSXODU FRQFHSWLRQV RI *DUFtD /RUFD DV D IRONORULF GUDPDWLVW WKH VWDJLQJV VHHQ LQ 3DULV DQG 0LODQ DV ZHOO DV 0DGULG·V &HQWUR 'UDPiWLFR 1DFLRQDO SURPRWHG +LVSDQLF FXOWXUDO KHULWDJH DEURDGZLWKRXWUHGXFLQJLWWRDVLQJOHKHJHPRQLFSURGXFW :LWK(OS~EOLFR 3DVTXDOGLVSHQVHGZLWKDUHYHUHQWLDOUHDGLQJWKDW PLJKW KDYH SUHVHQWHG WKLV H[FDYDWHG SOD\VFULSW WR D FXULRXV DXGL HQFH ZLWK ULJLGO\ VDFUHG SUHFLVLRQ ,QVWHDG 3DVTXDO FKRVH D PRUH SOD\IXODSSURDFKWKDWFHOHEUDWHGQRWRQO\WKHFRPSOH[LQWHUDFWLRQRI GLIIHULQJ OLQJXLVWLF DQG GUDPDWLF GLVFRXUVHV LQ WKH SOD\ EXW DOVR WKH VSHFLILF IXQFWLRQV RI WKH HFFHQWULF VWDJH GLUHFWLRQV 5DWKHU WKDQ VLPSO\ VHHLQJ WKHLU WDVN DV H[WUDFWLQJ PHDQLQJ IURP *DUFtD /RUFD·V WH[W 3DVTXDODQG3XLJVHUYHUUHFRJQLVHGWKHLURZQHQJDJHPHQWLQ D FUHDWLYH GLDORJXH ZLWK WKH SOD\ 5HPRYLQJ WKH VWDJH DQG WKH RUFKHVWUDVWDOOVRIWKH7HDWUR0DUtD*XHUUHURSURYLGHGDQH[SDQVLYH DOPRVW FLUFXODU SOD\LQJ DUHD RI VSDUNOLQJ EOXH VDQG WKDW VLPXOWDQH RXVO\ HYRNHG D FLUFXV ULQJ D OXQDU ODQGVFDSH D EHDFK DQG D FRUUDO &RVWXPHVDOOXGHGWRWKHSOD\·VYDULDQWJHQHULFUHJLVWHUVDQGZHUHQRW ORFDWHGLQDQ\GHILQDEOHSHULRGRUWUDGLWLRQ :LWK &RPHGLD VLQ WtWXOR DOVR 3DVTXDO·V YLVXDO DHVWKHWLF UHYROYHG DURXQGWKHSROLWLFVRIYLVLELOLW\ +LQJLQJRQWKHVOLJKWSORWRIDUHYR OXWLRQ EUHDNLQJ RXW RXWVLGH D WKHDWUH ZKHUH UHKHDUVDOV IRU $ 0LGVXPPHU 1LJKW·V 'UHDP DUH WDNLQJ SODFH WKH SOD\·V QDUUDWLYH VW\OH OLNH WKDW RI (O S~EOLFR ZDV REOLTXH DQG IUDJPHQWDU\ ,Q 3XLJVHUYHU·V GHVLJQ WKHRUQDWHVSOHQGRXURIWKH7HDWUR0DUtD*XHUUHURZDVGHFL VLYHO\ SODFHG RQ GLVSOD\ SURYLGLQJ D IUDPH IRU WKH UHKHDUVDOV RI 6KDNHVSHDUH·V SOD\ WKDW 3DVTXDO LQFOXGHG LQ KLV VWDJLQJ $OWHUQDWLYH WKHDWULFDOFRQILJXUDWLRQVXQGHUPLQHGWKHVSHFWDWRUV· VHQVHRIWKHP
//8Ì63$648$/
VHOYHV DV D FRKHVLYH JURXS $FWRUV ZHUH SODQWHG LQ WKH DXGLHQFH ¶5HKHDUVDOV· ZHUH GLVUXSWHG E\ WKH WHQVLRQV HUXSWLQJ DURXQG WKH VWDJH $UXPEOLQJQRLVHRQWKHVWUHHWRXWVLGH V\PEROLFRIWKH¶RWKHU·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·V GLVHPERGLHGSOD\ WKHSURGXFWLRQVWRRGXSDJDLQVWWKHERXQGDULHVRI DFFHSWHGWDVWH WKH¶FXOWXUDGHSODVWLFR· ZKLFK3DVTXDOKDVUHSHDWHGO\ GHQRXQFHGIRULWVFRUUXSWLQJDQGGHELOLWDWLQJFRPSODFHQF\ ,WLVVLJQLILFDQWWKDW3DVTXDOFKRVH&RPHGLDVLQWtWXOR ERWKWRFORVH KLV WHQXUH DW WKH &HQWUR 'UDPiWLFR 1DFLRQDO DQG DV KLV LQDXJXUDO SURGXFWLRQDVDUWLVWLFGLUHFWRURIWKH2GpRQ7KpkWUHGHO·(XURSHLQ 6WDJLQJ&RPHGLDVLQWtWXOR ERWKLQ)UHQFKDV6DQV7LWUH DQGLQ &DVWLOLDQ6SDQLVK²DQGDVVXPLQJWKHUROHRIWKH$XWRU $XWKRU LQ WKH 6SDQLVKODQJXDJH SURGXFWLRQ ² KH VRXJKW WR HPSKDVLVH D FXOWXUDO VSHFLILFLW\ WKDW ZDV HQDFWHG ERWK WKURXJK D IRFXV RQ WKH SUREOHPV LQKHUHQW LQ WUDQVODWLQJ *DUFtD /RUFD LQWR )UHQFK DQG WKURXJKWKHGLIIHUHQWSHUIRUPDQFHWUDGLWLRQVRI)UHQFKDQG6SDQLVK DFWRUV 5DWKHUWKDQHUDVHGLIIHUHQFHLQVHDUFKRIVRPHQDLYHFRQFHSW RI FXOWXUDO JOREDOLVDWLRQ 3DVTXDO VRXJKW WR HPSKDVLVH GLYHUVLW\ DQG SDUWLFXODULW\ 5HIHUULQJWRKLPVHOIDVPRUH6SDQLVKLQ3DULVWKDQKH LV LQ 6SDLQ 3DVTXDO VWURQJO\ UHIXWHG WKH FRQFHSW RI LQWHUQDWLRQDO WKHDWUH ORRNLQJLQVWHDGDWWKH2GpRQWRFUHDWHWKHSRVVLELOLW\ IRUD (XURSHDQ WKHDWUH WKDW JRHV EH\RQG SROLWLFDO LQVWLWXWLRQV RU EODQG VWDQGDUGLVDWLRQ &RPHGLDVLQWtWXOR6DQV7LWUH ZDVDERXWWKHLQDXJXUD WLRQRIDWKHDWULFDOVWUDWHJ\WKDWFRXOGRIIHUDPHDQVRILQWHU URJDWLQJ ZKDWWKHRVFLOODWLQJGLVFRXUVHVRIDQHZ(XURSHPLJKWEHDQGKRZ WKHDWUHPLJKWSDUWLFLSDWHLQWKHGHEDWHVUDJLQJWKURXJKWKHVKLIWLQJ ERXQGDULHVRIWKHFRQWLQHQW 7KH GHDWK RI 3XLJVHUYHU LQ VDZ 3DVTXDO QHJRWLDWH QHZ GHVLJQ SDUWQHUVKLSV :LWK )UHGHULF $PDW 3DVTXDO UHDOLVHG +DFLHQGR /RUFD 0DNLQJ/RUFD LQ 2ULJLQDOO\FRQFHLYHGDVDUHZRUNLQJRI %RGDVGHVDQJUH %ORRG:HGGLQJ IRU1XULD(VSHUWDQG$OIUHGR$OFyQ LW PXWDWHG GXULQJ UHKHDUVDO LQWR D PHGLWDWLRQ RQ WKH SOD\ FHQWULQJ RQWKHFKDUDFWHUVRI'HDWKDQGWKH0RRQ $GDSWHG GLVPDQWOHGDQG UHRUJDQLVHG WKH SLHFH HPHUJHG OLNH 3HWHU %URRN·V SHUIRUPHG HVVD\ RQ +DPOHW 4XL HVW Oj" DV D SURFHVV RI ZHDYLQJ WRJHWKHU UHVHDUFK
//8Ì63$648$/
UHIOHFWLRQV VHOHFWHGVHFWLRQVRIWKHSOD\DQGIUDJPHQWVRIRWKHUWH[WV 7KHHPSKDVLVZDVRQQDUUDWLYHGLVFRQWLQXLW\ZKHUHERGLHVRILQKHU LWHGPHDQLQJFRPHWRJHWKHUWRFRPPHQWRQWKHFRQIOLFWVSOD\HGRXW LQWKHZULWLQJV 7KHFRUHGHVLJQPHWDSKRURIWKHFUDQH SURYLGHGE\ $PDW DQG RSHUDWHG E\ D WHDP RI IRXU WHFKQLFLDQV DOOXGHG WR 3XLJVHUYHU·VFDQYDVPHPEUDQHIRU9tFWRU*DUFtD·V
(,0817$61(.526,86
1RWHV
3DVTXDO TXRWHG LQ 'HOJDGR 0DULD 0 ¶5HGHILQLQJ 6SDQLVK 7KHDWUH /OXtV 3DVTXDO RQ 'LUHFWLQJ )DELi 3XLJVHUYHU DQG WKH /OLXUH· 6SDQLVK 7KHDWUH ² 6WUDWHJLHV LQ 3URWHVW DQG ,PDJLQDWLRQ &RQWHPSRUDU\7KHDWUH5HYLHZ ² 3DVTXDO TXRWHG LQ 'HOJDGR 0DULD 0 DQG +HULWDJH 3 HGV ,Q &RQWDFWZLWKWKH*RGV"'LUHFWRUV7DON7KHDWUH 0DQFKHVWHUDQG1HZ
)XUWKHUUHDGLQJ 'HOJDGR 00 ¶2WKHU· 6SDQLVK7KHDWUHV (UDVXUHDQG,QVFULSWLRQRQWKH 7ZHQWLHWK &HQWXU\ 6SDQLVK 6WDJH 0DQFKHVWHU 0DQFKHVWHU 8QLYHUVLW\ 3UHVV 6PLWK 3- 7KH 7KHDWUH RI *DUFtD /RUFD 7H[W 3HUIRUPDQFH 3V\FKRDQDO\VLV &DPEULGJH &DPEULGJH8QLYHUVLW\3UHVV 0$5,$0 '(/*$'2
(,0817$61(.526,86 ² /LWKXDQLDQERUQ (LPXQWDV 1HNURVLXV WUDLQHG XQGHU $QGUH\ *RQFKDURYDWWKH6WDWH,QVWLWXWHIRU7KHDWUH$UWVLQ0RVFRZ 8QWLO WKHHDUO\ VKHZRUNHGDWWKH6WDWH
(,0817$61(.526,86
WRRSHQXSWKHVSDFHRIWKHSDVW 7KHODWWHUVSDFHZDVWKHQVHDOHGRII DJDLQ DW WKH HQG ZKHQ WKH QDUUDWLYH UHWXUQHG WR WKH SUHVHQW 3LURVPDQL 3LURVPDQL DOVR XVHG WKH IRUP RI UHWURVSHFWLRQ DQG IRFXVHG RQ WKH ODVW GD\ LQ WKH OLIH RI WKH ODWH QLQHWHHQWKFHQWXU\ *HRUJLDQ SULPLWLYH SDLQWHU 3LURVPDQL UHIOHFWV DERXW KLV OLIH DQG HQJDJHV LQ GLDORJXH ZLWK WKH DQLPDWHG FKDUDFWHUV RI KLV SDLQWLQJV 7KH SDLQWHU FDQQRWUHFRQFLOHFUHDWLYLW\ZLWKUHDOLW\²DGLOHPPDFDSWXUHGLQDNH\ LPDJH RI WKH SURGXFWLRQ ZKHQ 3LURVPDQL GUDZV D ILJXUH RQ WKH IURVWHG ZLQGRZ DQG IURP WKH RWKHU VLGH KLV PXVH ,\D DSSHDUV DQG ZLSHVWKHZLQGRZ 6KHGHVWUR\VWKHSDLQWLQJ EXWKHUVHOIEHFRPHVWKH QHZREMHFWRIWKHSLFWXUHDVVKHVWDQGVLQWKHIUDPH ,Q 7KH1RVH KLV ODVW SURGXFWLRQ DW WKH
(,0817$61(.526,86
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· HVWDWH VXJJHVW WKDW WKH HVWDWHLVGRRPHG )RU1HNURVLXV &KHNKRY·VGUDPDVDUHFRPHGLHVLQ WKDWWKHFKDUDFWHUVDUHDZDUHRIWKHLUGHVWLQ\DQGZLWQHVVWKH HQGRI WKHLUHUD EXWHQJDJHLQDVHULHVRIJDPHVEHWZHHQWKHFUXFLDOHYHQWV LQ&KHNKRY DOZD\VRIIVWDJH ZKLFKFRQVWLWXWHWKHLUOLYHV $IWHUDGDSWLQJ5RPHRDQG-XOLHW WRWKHURFNRSHUD/RYHDQG'HDWK LQ 9HURQD DQG DQ DERUWHG .LQJ /HDU LQ WKH HDUO\ V 1HNURVLXV WXUQHG WR +DPOHW 0DFEHWK DQG 2WKHOOR UHGXFLQJ WKHLU WH[WV WR FRQFHQWUDWH RQ WKH FHQWUDO DQG XQLYHUVDO WKHPHV RI OLIH DQG GHDWK 7KH FUXFLDO WKHPH LQ +DPOHW DQG 0DFEHWK ZDV WKH FRQWLQXLW\ RI WLPH FDSWXUHGLQWKHGHVLJQRI+DPOHW E\WKHHURGLQJGUL]]OHIDOOLQJ RQWRDUXVW\VDZVXVSHQGHGRYHUWKHVWDJHFHQWUHDQG LQ0DFEHWK E\ D VZD\LQJ ZRRGHQ EDU 7KLV ZDV FRQWUDVWHG ZLWK WKH WUDQVLHQFH RI KXPDQOLYHVDQGKRZWKH\DUHGLVUXSWHGWKURXJKWKHWDVNRIUHYHQJH WKH IDWKHU FKDOOHQJLQJ WKH VRQ WR H[HUW D *RGOLNH IXQFWLRQ RU WKURXJK IDWH DQG FLUFXPVWDQFH WKH ZLWFKHV· PDQLSXODWLRQ RI 0DFEHWK ,Q 2WKHOOR WLPH LV VWDWLF LW LV PHDVXUDEOH OLNH WKH ZDWHU OHYHORQDEDUSODFHGDWWKHFHQWUHRIWKHVWDJH ,Q +DPOHW 1HNURVLXV LV LQWHUHVWHG LQ WKH WKHPH RI WDNLQJ OLIH +DPOHW·V IDWKHU UHDFKHV WKH VDG UHDOLVDWLRQ WKDW KH JDYH WKH ZURQJ UROH WR KLV VRQ E\ GHPDQGLQJ KH WDNH UHYHQJH ,Q 0DFEHWK WKH ZLWFKHV SOD\ ZLWK 0DFEHWK·V OLIH XQWLO LW LV WRR ODWH %RWK SURGXF WLRQV HQG ZLWK XQZDQWHG \HW SUHGLFWDEOH GHDWKV 3HRSOH LQIOLFW GHVWUXFWLRQRQWKHOLYHVRIWKHSURWDJRQLVWVZKLOHGHPDQGLQJMXVWLFH +DPOHW·VIDWKHU RUDWWHQWLRQLQDJDPHZLWKORYHDQGSRZHU WKH ZLWFKHV 2WKHOOR KRZHYHU WDNHV 'HVGHPRQD·V OLIH DV ZHOO DV KLV RZQ +HNQRZVIURPWKHRXWVHWWKDWKLVORYHIRU'HVGHPRQDKDVQR FKDQFH EHFDXVH RI LWV LQWHQVLW\ +H LV HQDPRXUHG ZLWK WKH JLUO KH
(,0817$61(.526,86
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· SURGXFWLRQV LPSUHVV E\ WKHLU SRZHUIXO LPDJHV DQG E\ WKH FODULW\ ZLWK ZKLFK KH FRQYH\V KLV LQWHUSUHWDWLRQ WKURXJK WKHDWULFDOGHYLFHV +LVLVDKLJKO\YLVXDOWKHDWUH +HH[SODLQVWKHPRWL YDWLRQV RI D FKDUDFWHU·V DFWLRQ WKURXJK JHVWXUHV DQG WKH ULWXDO RI HYHU\GD\ OLIH +H SUHVHQWV WKH DXWKRU·V :HOWDQVFKDXXQJ DV HYLGHQW LQ WKH WH[W ZLWK JUHDW FODULW\ 7KHUH PD\ EH UHFXUULQJ LPDJHV LQ 1HNURVLXV·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·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· DELOLW\ WR UHDG WKHP LPDJLQD WLYHO\ EXW DUH QHYHU SUHVFULSWLYH DQG XQHTXLYRFDO )RU H[DPSOH ILUH FDQGHVWUR\RULOOXPLQDWH ZDWHUFDQEHOLIHJLYLQJDQGUHIUHVKLQJ RU
'(&/$1'211(//$1
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·VDELOLW\WRHQJDJHLQH[SUHVVLYH DQG SOD\IXO PRYHPHQWV DQG WR SHUIRUP WKH ¶GDQFH· RI GHDWK ZLWK 2WKHOOR 6LPLODUO\ KHU DJLOLW\ FDQ EH FRQWUDVWHG ZLWK 2WKHOOR·V ZRRGHQDQGZHLJKW\PRYHPHQWV 8QGHU 1HNURVLXV WKH VHW GHVLJQ GHYHORSV GXULQJ UHKHDUVDO WR DOORZ IRU WKH VWDJH SURSV WR EH HQFRPSDVVHG LQ WKH FRUH VFHQLF LPDJH ZKLFK LV VWDWLF VLQFH QRQH RI WKH SURGXFWLRQV KDV D VHW FKDQJH 7KLVVHWFUHDWHVWKHFRQGLWLRQVIRUWKHDFWRUV· SOD\ 1HNURVLXV KDVZRUNHGZLWKDQDOPRVWXQFKDQJHGWHDPRIFROODERUDWRUV WKHVHW GHVLJQHUV $GRPDV -DFRYVNLV DQG 1DGH]KGD *XOWLD\HYD DQG WKH FRPSRVHU )DXVWDV /DWHQDV 7KH FORVH FROODERUDWLRQ ZLWK DFWRUV PXVLFLDQV DQG GHVLJQHUV UHIOHFWV ZHOO WKDW WKH FHQWUDO LPDJH LV QRW GLFWDWHGE\WKHGLUHFWRUEXWLVGHYHORSHGFROOHFWLYHO\ )XUWKHUUHDGLQJ %HXPHUV %LUJLW ¶(URVLRQ WKURXJK 7LPH WKH 5HVW LV QRW 6LOHQFH· 7KHDWUH)RUXP ² 3RSHQKDJHQ /XGYLND 1HNURVLXV DQG /LWKXDQLDQ 7KHDWUH 1HZ
'(&/$1'211(//$1 ² 'RQQHOODQ WRJHWKHU ZLWK KLV GHVLJQHU DQG SDUWQHU 1LFN 2UPHURG ERWKJUDGXDWHVLQODZRI&DPEULGJH8QLYHUVLW\ IRXQGHG&KHHNE\ -RZO LQ DV D QDWLRQDO DQG LQWHUQDWLRQDO WRXULQJ FRPSDQ\ ,WV FRPPLWPHQW WR DQ HQVHPEOH HWKRV ZDV D WDOO RUGHU LQ D VRFLHW\ LPEXHGZLWKWKHLQGLYLGXDOLVWLFDQGFRPSHWLWLYHYDOXHVRI0DUJDUHW 7KDWFKHU·VJRYHUQPHQW ZKRVHGHVWUXFWLRQRIWKHSXEOLFVHFWRUDQG
'(&/$1'211(//$1
FXWV WR DUWV VXEVLGLHV ZHDNHQHG WKH LQVWLWXWLRQDO VWDWXV RI WKHDWUH PDNHUV DQG WKH TXDOLW\ RI WKHLU ZRUN 'RQQHOODQ DQG 2UPHURG·V LFRQRFODVWLFDWWLWXGHWRZDUGVWKHSUHYDLOLQJGRJPDVLQMHFWHGQHZOLIH DQGH[FLWHPHQWLQWRWKH%ULWLVKWKHDWUHRIWKH V &KHHN E\ -RZO·V UHPLW WR UHLQYLJRUDWH WKH FODVVLFV DQG PDNH WKHP YLWDO WR D ZLGH SXEOLF LQYROYHG GHP\VWLI\LQJ WKH FDQRQ QRW OHDVW 6KDNHVSHDUH WKDW PRVW FDQRQLFDO RI (QJOLVK GUDPDWLVWV 7KH FRPSDQ\·V FULWLTXH RI D FHUWDLQ NLQG RI HVWDEOLVKPHQW¶(QJOLVKQHVV· ZDV DOVR HYLGHQW LQ LWV FDVWLQJ RI ORFDO EODFN DFWRUV LQ PDMRU UROHV VLPLODUO\ LQ LWV SURPRWLRQ RI IRUHLJQ FODVVLFV PDQ\ RI WKHP QHYHU KDYLQJEHHQSHUIRUPHGLQWKHFRXQWU\EHIRUH 'RQQHOODQ·VSURGXF WLRQVRI5DFLQH·V $QGURPDTXH &RUQHLOOH·V /H&LG DQG 2VWURYVN\·V$)DPLO\$IIDLU ZHUH%ULWLVKSUHPLHUHV 7KH\DOVR GHPRQVWUDWHG E\ VWULSSLQJ DZD\ QDWLRQDO VWHUHRW\SHV ² &RUQHLOOH·V ¶)UHQFK· UKHWRULF DQG IORXULVK IRU LQVWDQFH ² 'RQQHOODQ·V IHDUOHVV DSSURDFKWRWKHYHU\LGHDRIDFDQRQDVVXFK 'RQQHOODQ LV QHLWKHU PLOLWDQW QRU GLGDFWLF DW WKH WLPH RI KLV 0HDVXUHIRU0HDVXUH DQH[SRVpRIWKHFDQWRIVWDWHDXWKRULW\ DQGFRUUXSWLRQLQJRYHUQPHQWZKRVHWRSLFDOLQWHUHVWZDVHYLGHQW² JLYHQFXUUHQWVFDQGDOVLQYROYLQJSROLWLFLDQV²KHLVTXRWHGDV VD\LQJ WKDW¶WKHDWUHGRHVQ·WDQVZHUSROLWLFDOTXHVWLRQV WKRXJKLWDVNVWKHP· *XDUGLDQ -XQH $VNLQJSHUWLQHQWTXHVWLRQV DOZD\VLQUHOD WLRQ WR DFWXDOLW\ LV FHQWUDO WR KLV IRFXV RQ WH[WV DV UHSRVLWRULHV RI WKRXJKW QRW WDNHQ IRU JUDQWHG DV EHLQJ WKHUH LPPDQHQW LQ WKH ZRUGV RQ WKH SDJH EXW GLVFRYHUHG DQG DVFULEHG E\ DFWRUV DV WKH\ SUREHWKHSRVVLELOLWLHVRISOD\ 7KHDFWRU IRU'RQQHOODQ LVQHLWKHUDQ LQWHUSUHWHU RI SUHH[LVWLQJ PHDQLQJ QRU D FUHDWRU E\ VKHHU GLQW RI LQYHQWLYH RU ¶FUHDWLYH· SRZHU +HVKH LV DQ ¶LQWUHSLG H[SORUHU· DQG ¶ILQGVUDWKHUWKDQFUHDWHVDQGFRQWUROV· 'RQQHOODQ ,Q WKLV FDQ EH GHWHFWHG 'RQQHOODQ·V LPSOLFLW FULWLTXH RI 6WDQLVODYVN\·V QRWLRQ RI WKH DFWRUFUHDWRU ZKLFK UHDSSHDUV LQ KLV HPSKDVLVRQKRZWKHDFWRUGLVFRYHUVDXQLYHUVHIURPZLWKRXWUDWKHU WKDQIURPZLWKLQKLVKHUVHOI :KDWLVIRXQG FRQWUD6WDQLVODYVN\ LV QRW D VWRUHKRXVH RI FRQVFLRXV DV ZHOO DV XQFRQVFLRXV H[SHULHQFHV DQG PHPRULHV ¶LQVLGH· WKH DFWRU ZDLWLQJ WR EH GUDZQ RXW EXW D ZKROH KRVW RI SUDJPDWLFDOO\ DVFHUWDLQDEOH RSWLRQV ¶RXWVLGH· LQ WKH DPELHQWZRUOG (DFKRQHRIWKHVHLVD¶WDUJHW· DV'RQQHOODQFDOOVLW VRPHWKLQJ FRQFUHWH WR JXLGH WKH DFWRU·V DFWLRQV ² D TXHVWLRQ WR EH UDLVHG DGHFLVLRQWREHPDGH DQREMHFWWREHSHUFHLYHG 7KHDFWRULV FRQIURQWHG E\ VKLIWLQJ WDUJHWV VLQFH WKH\ PRYH DW HYHU\ JLYHQ PRPHQW RI SOD\ 1RWKLQJ LV IL[HG DQG WKH GLUHFWRU·V WDVN LV QRW WR PDS EXWWRHQDEOHWKLVMRXUQH\WKURXJKFRQVWDQWO\FKDQJLQJJRDOV
'(&/$1'211(//$1
'RQQHOODQ·V RXWVLGHRULHQWHG DSSURDFK WR GLUHFWLRQ DLPV IRU WUDQVSDUHQF\ ,WVDVVXPSWLRQVDSSHDUWRXQGHUOLHWKUHHDELGLQJSULQFL SOHV RI KLV ZRUN FDUH IRU WKH WH[W DV D GLVFUHWH YHUEDO FRPSRVLWLRQ UHTXLULQJSULVWLQHH[SRVLWLRQ HQXQFLDWLRQDQGGLFWLRQ ZKLFKIDFLOL WDWH WKH DFWRU·V GLVFRYHU\ RI WDUJHWV XQFOXWWHUHG VSDFH LQ ZKLFK WKH GLDORJXHXWWHUHGFDQPDLQWDLQLWVLQWHJULW\ WKLVFRQGLWLRQEHLQJPHW E\ 2UPHURG·V PLQLPDOLVW GHVLJQ DQG FRQFHQWUDWLRQ RQ WKH DFWRU WKURXJKZKRPDUHFU\VWDOOLVHGWKHFRQWUDGLFWRU\PRWLYHV HPRWLRQV DQG DFWLRQV RI FKDUDFWHUV FRQWUDGLFWLRQ DQG LUUHVROXWLRQ EHLQJ SDUW RI WKH IOX[ RI WKH HYROYLQJ WH[W IRU SHUIRUPDQFH 'RQQHOODQ·V FRQFHUQ ZLWK WKH FRQIOLFWLQJ WHQVLRQV WKDW DFWLYDWH HDFK PRPHQW LQGLFDWHVZK\DVKLIWLQJWDUJHWLVDOZD\VDFFHVVLEOH WKLVEHLQJSDUWRI WKHWUDQVSDUHQF\RIWKHPLVHHQVFqQH 7UDQVSDUHQF\ KRZHYHU LV QRW D PDWWHU RI PRQRORJLFDO SUHVHQWD WLRQ $V 'RQQHOODQ SXWV LW ZKDW LV DW VWDNH IRU WKH DFWRU LV QRW D ¶SDUDO\VLQJ¶¶RQH·· · LVVXHWREHSOD\HG EXWD¶G\QDPLF¶¶WZR·· · LELG ,QWKHFDVHRI-XOLHW IRUH[DPSOH :KDWLVDWVWDNHLVQRW ¶WKDW-XOLHWZLOOUXQDZD\ZLWK5RPHR· :KDWLVDWVWDNHLV ¶WKDW-XOLHWZLOOUXQDZD\ZLWK5RPHR· DQG ¶WKDW-XOLHWZLOOQRWUXQDZD\ZLWK5RPHR· %RWK WKH SRVLWLYH DQG WKH QHJDWLYH DUH SUHVHQW DW WKH VDPH WLPH ERWK WKH KRSH DQG WKH IHDU ERWK WKH SOXV DQG WKH PLQXV ,ELG 2QHSROHDORQH²SRVLWLYHRU QHJDWLYH²LV¶SDUDO\VLQJ· EHFDXVH REVHV VLYH LWGHPDQGVDFDWHJRULFDODQGWKXVXQDWWDLQDEOHDQVZHU 7KH HDUO\ 6KDNHVSHDUH SURGXFWLRQV QRWDEO\ 0LGVXPPHU 1LJKW·V 'UHDP DQG 5RPHR DQG -XOLHW SUREH WKLV LGHD RI WKH ¶G\QDPLF¶¶WZR·· · OHDGLQJWRLWVMR\IXOH[SORUDWLRQRIGRXEOLQJLQ$V
'(&/$1'211(//$1
PXFKDERXWUDFLDODQGHWKQLFPL[LQJDVDERXWWKHWULFNVRISHUFHS WLRQ ZKLFK ILOWHU WKURXJK KLJKO\ VXEWOH DQG IXQQ\ SHUIRUPDQFHV IURPDOODVWKH\WRVVRIIYHUEDODQGJHVWXUDOMRNHV DIOLFNRIDZULVW D WZLWFKRIDQH\H PDNHTXLFN RIWHQXQH[SHFWHGHQWUDQFHVDQGH[LWV DQGZHDYHDQHWZRUNRIVHQVXDOFKDUDFWHUUHODWLRQVKLSV ,Q DOO KLV 6KDNHVSHDUH SURGXFWLRQV 'RQQHOODQ VFUXSXORXVO\ IROORZV WKH UK\WKPV RI 6KDNHVSHDUH·V EODQN YHUVH EXW KDV LW VSRNHQ LQFRQYHUVDWLRQDOWRQHV +HIRXQGWKLVQDWXUDOTXDOLW\LQWKH5XVVLDQ WUDQVODWLRQ KH FKRVH RI 7KH :LQWHU·V 7DOH GLUHFWHG ZLWK WKH 0DO\ 'UDPD7KHDWUHRI6W3HWHUVEXUJ DQGZKLFKWRXUHG%ULWDLQLQ $Q H[WUDRUGLQDULO\ SRZHUIXO VWXG\ RI SROLWLFDO DQG GRPHVWLF RSSUHVVLRQ /HRQWHV· FRQGHPQDWLRQ RI +HUPLRQH LV D VKRZWULDO VFHQHUHFDOOLQJ6WDOLQ·VSXUJHVRIWKH V LWVUHVROXWLRQVKRZVWKH SRZHURIORYH UHFRQFLOLDWLRQDQGIRUJLYHQHVV 7KHVH DUH WKHPHV WR ZKLFK 'RQQHOODQ UHWXUQV QRW OHDVW LQ KLV /H &LG LQ )UHQFK IRU WKH $YLJQRQ )HVWLYDO DQG ZKLFK ZDV SHUIRUPHG LQ /RQGRQ ZLWK (QJOLVK VXUWLWOHV LQ +HUH WRR 'RQQHOODQ UHVSHFWV WKH WH[WXDO ODQJXDJH ² LQ WKLV FDVH &RUQHLOOH·V DOH[DQGULQHV²EXWKDVLWVSRNHQZLWKRXWWKHVRQRURXVPRQRWRQ\WR ZKLFK WKHVH WZHOYHPHWUH UK\PLQJ FRXSOHWV VR HDVLO\ OHQG WKHP VHOYHV &RUQHLOOH·V KHURLFV LQ ZKLFK SDWHUQDO W\UDQQ\ KRQRXU GXW\ DQGUHYHQJHLPSHGHORYH DUHFXWGRZQWRVL]HWKURXJKVXFKGHYLFHV DV WKH JKRVW ILJXUH QRW LQ &RUQHLOOH RI &KLPqQH·V IDWKHU ZKRP 5RGULJXH WKH SURWDJRQLVW DQG &KLPqQH·V ORYHU NLOOV WR DYHQJH WKH GHDWK RI KLV RZQ IDWKHU 7KLV¶JKRVW· VWDONV WKH ORYHUV PRUH OLNH D YR\HXU WKDQ D GLVDSSURYLQJ IDWKHU IL[DWHG RQ WKH UXOHV RI GXW\ &KLPqQHLVPHDQWWRDYHQJHKHUIDWKHUE\UHQRXQFLQJ5RGULJXH +LV JD]H LV XSRQ &KLPqQH ZKLFK LOOXVWUDWHV 'RQQHOODQ·V QRWLRQ RI ¶WDUJHW· ² VKH LV WKH DFWRU·V WDUJHW UDWKHU WKDQ KLV FKDUDFWHU·V LQWHUQDO IHHOLQJV 6LPLODUO\ LWGUDZVDWWHQWLRQWRKHUWRUPHQWHGVWDWHRIPLQG REMHFWLI\LQJKHUSDVVLRQUDWKHUWKDQIRFXVLQJRQKRZLWVXUJHV IURP ZLWKLQ RUOHWWLQJLWGRPLQDWHWKHVWDJH 'RQQHOODQ·V VW\OH LV GHOLEHUDWH *URXSLQJV DUH IRUPDO HYHQ VHOI FRQVFLRXVO\ SODFHG HVSHFLDOO\ LQ KLV RSHQLQJV 6FHQHV RYHUODS DV KDSSHQV ZKHQ 5RGULJXH·V IDWKHU VODSV &KLPqQH·V IDWKHU ZKLOH D JXLWDUFRQFHUWHQGVWRDSSODXVHDW&RXUW $FWRUVIUHH]HZKLOHRWKHUV FRPSOHWH VFHQHV RU LQWURGXFH QHZ RQHV 2U HOVH WKH\ IUHH]H WR FRQWDLQ HPRWLRQV DV RFFXUV DW WKH HQG RI 7KH :LQWHU·V 7DOH ZKHQ HPRWLRQ LV VR LQWHQVH WKDW PRYHPHQW ZRXOG KDYH EURNHQ LWV JULS 7KHSDVWFROODSVHVLQWRWKHSUHVHQW 7LPHLVVXVSHQGHG RULWVSDVVDJH LVHPEOHPDWLFDOO\FRQILJXUHG²LQ7KH:LQWHU·V7DOH E\DQROGZRPDQ VZHHSLQJWKHIORRUZKR ZKHQWLPHIDFLOLWDWHVKHDOLQJ LVWUDQVIRUPHG
'(&/$1'211(//$1
LQWR D UDGLDQW \RXQJ ZRPDQ 'LIIHUHQW ORFDWLRQV DSSHDU VLPXOWDQH RXVO\ 9LROHQFH LV VW\OLVHG DV LQ /H &LG ZKHQ D PLPHG GXHO FDVWV KXJH VKDGRZV RQ WKH EDFN ZDOO 7KH DFWLQJ LV LQFLVLYH SUHFLVH DQG GHYRLG RI VHQWLPHQWDOLW\ 0RYHPHQWV DQG JHVWXUHV DUH VLPSOH DQG IUHTXHQWO\JHRPHWULFDOO\DVVLJQHG 2UPHURG·VGHVLJQLVVSDUVH *UHHQEDQQHUVGURSIURPWKHIOLHVLQ $V
1(,/$50),(/'
+HDQG2UPHURGFDPHWRNQRZWKH0DO\DFWRUVVRZHOOWKDWWKH\ ZHUH DEOH WR FDVW 7KH :LQWHU·V 7DOH LQ RQH PRUQLQJ XQSXEOLVKHG LQWHUYLHZ ZLWK DXWKRU /RQGRQ 'HFHPEHU ,Q DGGLWLRQ 'RQQHOODQREVHUYHV ¶,·PPRUHLQWHUHVWHGLQWUDLQLQJWKHDFWRUWKDQ LQ LPSRVLQJ VSHFLILF LQWHUSUHWDWLRQV RQ D SOD\ ² VRPHWKLQJ HOVH , KDYHLQFRPPRQZLWKWKH5XVVLDQV· 'DLO\7HOHJUDSK 0D\ 1RWVLQFH&UDLJ·V+DPOHW DWWKH0RVFRZ$UW7KHDWUHKDVD%ULWLVK GLUHFWRUGHVLJQHU D FRXSOH KHUH UDWKHU WKDQ RQH SHUVRQ VWDJHG 6KDNHVSHDUH LQ 5XVVLD ,Q 7KH :LQWHU·V 7DOH UHFHLYHG WKH *ROGHQ0DVNLQ0RVFRZ 5XVVLD·VHTXLYDOHQWRIWKH2OLYLHUDZDUG 'RQQHOODQZDVDOVRQRPLQDWHGIRUEHVWGLUHFWRU DGLVWLQFWLRQQHYHU EHIRUHFRQIHUUHGXSRQDIRUHLJQHU 1R%ULWLVKGLUHFWRU SDVWRUSUHVHQW KDVKDGVXFKDQLQWHQVHUHOD WLRQVKLSZLWKWKH5XVVLDQWKHDWUH 'RQQHOODQ·V%RULV*RGXQRY ZLWK 5XVVLDQ DFWRUV IURP YDULRXV WKHDWUHV LQ 0RVFRZ FRPELQHV EUHDWKWDNLQJ HQVHPEOH SHUIRUPDQFH VKDUS DQDFKURQLVPV *RGXQRY GUHVVHG OLNH 3UHVLGHQW 3XWLQ MX[WDSRVHG DJDLQVW DUFKDLF PRQNV DQG DQ HTXDOO\ SRLQWHG FRQQHFWLRQ EHWZHHQ WKH SROLWLFDO²HWKLFDO GLOHPPDV DGGUHVVHG E\ 3XVKNLQ DQG WKRVH FRQIURQWLQJ SRVW FRPPXQLVW 5XVVLD 7KH SURGXFWLRQ WRXUHG (XURSH LQFOXGLQJ 3DULV DQG/RQGRQ WRIXOVRPHDFFODLP 'RQQHOODQ·VZRUNZLWKKLV5XVVLDQ WHDPFRQWLQXHGZLWK7ZHOIWK1LJKW DWWKH&KHNKRY)HVWLYDOLQ 0RVFRZ +LV VXPPHU VFKRRO IRU (QJOLVK DFWRUV WKH 5R\DO 6KDNHVSHDUH $FDGHP\ &RPSDQ\ ZKLFK SHUIRUPHG .LQJ /HDU ZDV DOVRLQVSLUHGE\5XVVLDQSULQFLSOHVRIDFWRUWUDLQLQJ )XUWKHUUHDGLQJ 'RQQHOODQ 'HFODQ 7KH $FWRU DQG WKH 7DUJHW /RQGRQ 1LFN +HUQ %RRNV 5HDGH 6LPRQ &KHHNE\-RZO 7HQ
1(,/$50),(/' ² ,Q -DQXDU\ &RPSDQ\ % %HOYRLU 6\GQH\ DQG WKH 3HUWKEDVHG %ODFN 6ZDQ 7KHDWUH &RPSDQ\ SUHPLHUHG 1HLO $UPILHOG·V SURGXF WLRQ &ORXGVWUHHW IRU WKH )HVWLYDO RI 6\GQH\ ,Q &ORXGVWUHHW LW ZDV SRVVLEOHWRGLVFHUQ LIQRWWKHKLJKZDWHUPDUNRI$UPILHOG·VFDUHHU WKHQ DW WKH YHU\ OHDVW WKH FRQVXPPDWH FROORFDWLRQ RI D QXPEHU RI
1(,/$50),(/'
WKHPHV WKUHDGV FUDIW DQG SDVVLRQ FKDUDFWHULVLQJ WKDW FDUHHU ,Q &ORXGVWUHHW ZHVHHDWRQFH $UPILHOG·VDEVROXWHUHJDUGIRU DQGSULYL OHJLQJ RI WKH DFWRU KLV FRPPLWPHQW WR GHYHORSLQJ QHZ ZULWLQJ WKURXJK HQVHPEOH ZRUN FRQGXFWHG LQ FROODERUDWLRQ ZLWK SOD\ ZULJKWV KLV YLVXDO DQG VSDWLDO IODLU KLV FRQFHUQ ZLWK WKH GHYHORSPHQW RI DQ H[SUHVVLYH SRHWLF $XVWUDOLDQ VWDJH ODQJXDJH D GHVLUH WR SHRSOH WKH $XVWUDOLDQ VWDJH ZLWK LQGLJHQRXV DFWRUV DQG FKDUDFWHUV KLV SDVVLRQ IRU D JRRG VWRU\ ZHOO WROG DQG D UHFXUULQJ WKHPDWLF FRQFHUQ ZLWK IDPLOLDO EHORQJLQJ $V $UPILHOG KLPVHOI SRLQWHGRXW¶WKHWKLQJ,DPGUDZQWRLVWKHPRPHQWRISDVVLQJIURP LVRODWLRQWRFRPPXQLW\ DQGZKHQ,WKLQNRIWKHLPDJHVRIP\ZRUN WKDW , UHPHPEHU DQG WUHDVXUH PRVW WKDW LV WKH GUDPD WKDW LV EHLQJ HQDFWHG WKHVWRU\WKDWLVEHLQJWROG· $ VSUDZOLQJ ILYHKRXU DGDSWDWLRQ RI 7LP :LQWRQ·V QRYHO &ORXGVWUHHW LV WKH VWRU\ RI WZR GRZQRQWKHLUOXFN IDPLOLHV WKH /DPEV DQG WKH 4XLFNV VKDULQJ D KRXVH LQ 3HUWK LQ WKH \HDUV IROORZLQJWKH6HFRQG:RUOG:DU $UPILHOG·VSURGXFWLRQZDVVWDJHG LQDQHPSW\VKLSSLQJZDUHKRXVHRQWKHTXD\VLGHRI6\GQH\·V:DOVK %D\ 6FHQLFHOHPHQWVZHUHSLOHGDJDLQVWGXQFRORXUHGFDOLFRVKHHWV GUDSHGGRZQWKHVLGHDQGXSVWDJHZDOOV VXUURXQGLQJDYDVW HPSW\ EORQGZRRG DQG VDQG VWDJH $ YRPLWRU\ HQWUDQFH ELVHFWHG UDNHG EOHDFKHUV VHDWLQJ $XGLHQFH DQG SHUIRUPHUV VKDUHG WKH VDPH FDYHUQRXV VSDFH WKHUH ZDV QR SURVFHQLXP FXUWDLQ WDEV RU PDVNV 3URSV²DEDWKWXE IXUQLWXUH QHWWLQJ DERDW²ZHUHUROOHGRUFDUULHG RXWLQWRWKHSOD\LQJVSDFHE\WKHDFWRUV 7KHHIIHFWZDVQRWVRPXFK H[SOLFLWO\%UHFKWLDQ DVDUHFUHDWLRQ LQWKLVYDVW KROORZHGRXWLQGXV WULDOVSDFH RIWKHLQWLPDF\ RSHQQHVVDQGODFNRIDUWLILFHWKDWKDG IRU RYHU D GHFDGH EHFRPH WKH KRXVH VW\OH RI &RPSDQ\ % XQGHU $UPILHOG·V DUWLVWLF GLUHFWRUVKLS LQ WKH 8SVWDLUV 7KHDWUH DW %HOYRLU 6WUHHW ² LWVHOI ORFDWHG LQ D FRQYHUWHG LQGXVWULDO EXLOGLQJ 6LPLODUO\ (QULJKW DQG 0RQMR·V DGDSWDWLRQ DGRSWHG D SUHVHQWDWLRQDO YRLFH DQ HDUO\VWDJHGLUHFWLRQUHDGV¶48,&.VSHDNVGLUHFWO\WRWKHDXGLHQFH DVKHDQGRWKHUFKDUDFWHUVZLOOGRIURPWLPHWRWLPHWKURXJKRXWWKH SOD\· OHVVRXWRIDQLQWHOOHFWXDOUHJDUGIRUEUHDNLQJWKHLOOXVLRQRI YHULVLPLOLWXGH EXW SUHFLVHO\ EHFDXVH LQ $UPILHOG·V WKHDWUH WKLV PRPHQW RI FRQWDFW EHWZHHQ WKH IDQWDVWLFDO ZRUOG RI WKH QDUUDWLYH DQGWKHZRUOGRIWKHDXGLHQFHLVZKHUHWKHDWUHWDNHVSODFH 7ZR PRPHQWV LQ &ORXGVWUHHW LOOXVWUDWH $UPILHOG·V FDSDFLW\ WR FUHDWH LQWKLVVSDFHVKDUHGEHWZHHQDXGLHQFHDQGSHUIRUPHUV ZRUN WKDW LV GLVWLQFWO\ WKHDWULFDO :KHQ WKH EURWKHUV )LVK DQG 4XLFN JR QLJKWILVKLQJ $UPILHOG GLUHFWHG WZR RI KLV FDVW WR ZKHHO D URZLQJ ERDW LQWR WKH DUHQD IURP EHQHDWK WKH DXGLHQFH )LVK DQG 4XLFN
1(,/$50),(/'
FODPEHUHGLQDVWZRRWKHUDFWRUVSODFHGEDVLQVRIZDWHURQWKHVWDJH RQ HLWKHU VLGH $V WKH VFHQH VWDUWHG D FOXVWHU RI QDNHG OLJKWEXOEV YLVLEOH WKURXJKRXW WKH SHUIRUPDQFH EXW QRZ VORZO\ ORZHUHG LQWR WKHFHQWUHRIWKHVSDFH EHFDPHDQLQFDQGHVFHQWILUHIO\KDORDURXQG WKH ER\V· KHDGV 7KH ERDW ZDV JHQWO\ URWDWHG RQ LWV WUROOH\ ZKLOH RWKHUFDVWPHPEHUVJHQWO\ODSSHGDWWKHZDWHULQWKHEDVLQV 'DQLHO :\OOLH SOD\LQJ )LVK OHDQW RYHU WKH ERZ JD]LQJ LQWR WKH VXGGHQO\ HYRNHG QLJKW GHSWKV RI WKH 6ZDQ 5LYHU ² DQG LQ DQ LQVWDQW WKH DXGLHQFH ZDV WUDQVSRUWHG ZH ZHUH WKHUH WRR ,W ZDV D PRPHQW RI WUDQVFHQGHQW WKHDWULFDOLW\ ZLWK QR DWWHPSW WR FUHDWH D FRQYLQFLQJ LOOXVLRQ ,QVWHDG WKH FRQMXUHU KDG FDUHIXOO\ DOORZHG XV WR VHH WKH ZRUNLQJVRIWKHWULFNDVLWZDVSHUIRUPHG 7KHHOHPHQWVFRQVWLWXWLQJ WKHVFHQHZHUHDVVHPEOHG SLHFHE\SLHFH WKHUH LQIURQWRIWKHDXGL HQFH FUHDWLQJDPDJLFDOWUDQVIRUPDWLRQ DZKROHFRQVLGHUDEO\PRUH WKDQWKHVXPRILWVSDUWV ,QWKHSOD\·VILQDOPRPHQWV WKHFDVWDVVHPEOHGGRZQVWDJH IDFLQJ WKHLU DXGLHQFH :\OOLH)LVK VWHSSHG IRUZDUG VSHDNLQJ DV QDUUDWRU RIIHULQJWKHILQDOVSHHFK KLVORQJHVWRIWKHSOD\ ,NQRZP\VWRU\IRUMXVWORQJHQRXJKWRVHHKRZZH·YHFRPH KRZZH·YHDOOEDWWOHGLQWKHVDPHFRUULGRUWKDWWLPHPDNHVIRU XV DQG,·P)LVK/DPEIRUWKRVHVHFRQGVLWWDNHVWRGLH DVORQJ DVLWWDNHVWRGULQNWKHULYHU DVORQJDVLWWRRNWRWHOO\RXDOOWKLV DQG WKHQ P\ ZDOOV DUH WLSSLQJ DQG , EXUVW LQWR WKH PRRQ VXQ DQGVWDUVRIZKR,WUXO\DP %HLQJ)LVK/DPE 3HUIHFWO\ $OZD\V (YHU\SODFH 0H
),6+
7KHDFWRUWXUQHGXSVWDJHDQGVWDUWHGWRUXQ KDUG WRZDUGVWKHEDFN ZDOO RI WKH EXLOGLQJ ZKHUH WKH GXQ FXUWDLQV SDUWHG D VOHQGHU VOLW WKURXJK ZKLFK WKH DXGLHQFH FRXOG VHH WKH GDUN KDUERXU QLJKW RXWVLGH WKHFLW\VFDSHRIFDVLQRDQGUHVWDXUDQWVWZLQNOLQJLQWKHPLG GLVWDQFH $QG WKH DFWRU NHSW UXQQLQJ UXQQLQJ WKURXJK WKH ODELDO IROGVRIWKHFXUWDLQ LQWRWKHGDUNDQGOHDSW FDXJKWPRPHQWDULO\LQD VSRWOLJKW SOXQJLQJ LQWR WKH XQVHHQ ZDWHU EHORZ $V D SLHFH RI WKHDWUH LW ZDV VLPSO\ VWXQQLQJ D EUHDWKWDNLQJ FRXS GH WKpkWUH FHOH EUDWHG PLQXWHV ODWHU DV WKH GULSSLQJ :\OOLH UHWXUQHG WR WDNH KLV ERZV $UPILHOG·VILUVWSURIHVVLRQDOHQJDJHPHQWFDPHZKHQKLVSURGXF WLRQVIRUWKH6\GQH\8QLYHUVLW\'UDPDWLF6RFLHW\FDXJKWWKHH\HRI -RKQ%HOODQG.HQ+RUOHUDWWKH1LPURG7KHDWUH&RPSDQ\ DWWKDW WLPHWKH¶DOWHUQDWLYH· WRWKHPDLQVWUHDP 6\GQH\2SHUD+RXVHEDVHG 2OG 7RWH 7KHDWUH &RPSDQ\ DQG LWV VXFFHVVRU IURP WKH
1(,/$50),(/'
6\GQH\ 7KHDWUH &RPSDQ\ )URP XQWLO $UPILHOG ZDV &R$UWLVWLF'LUHFWRUDWWKH1LPURG DQGGLUHFWHGDFKDUDFWHULVWLF RI WKH 1LPURG PL[ RI QHZ $XVWUDOLDQ ZRUN QRWDEO\ E\ 6WHSKHQ 6HZHOO DQG /RXLV 1RZUD UHZRUNHG FODVVLFV -RQVRQ·V 9ROSRQH DQG FRQWHPSRUDU\(QJOLVKSOD\V )UD\Q +DUH 7KH1LPURG·VWKHDWUHZDV DFRQYHUWHGVDOWIDFWRU\EXLOGLQJRQ%HOYRLU6WUHHW LQLQQHU6\GQH\·V 6XUU\ +LOOV D ZRUNLQJFODVV VXEXUE RI ZDUHKRXVHV DQG SXEOLF KRXVLQJ 7KHPDLQDXGLWRULXP QRZNQRZQVLPSO\DV7KH8SVWDLUV 7KHDWUH FRQVLVWV RI D EURDG RSHQ LGLRV\QFUDWLF NLWHVKDSHG VWDJH EXLOW LQWR WKH FRUQHU RI WKH EXLOGLQJ DQG WKUXVWLQJ WR D EOXQW DSH[ EHWZHHQ WKUHH FRQYHUJLQJ VHDWLQJ EDQNV DQ LQWLPDWH DUHQD VSDFH VHDWLQJVSHFWDWRUV 7KURXJKWKHHQVXLQJWZHQW\\HDUV WKHEXONRI$UPILHOG·VGLUHF WRULDOZRUNKDVEHHQVHHQRQWKLVVWDJH ,WZDVWRWKLVVWDJHWKDWKH UHWXUQHGLQWKHODWH V DQGLWLVKHUHWKDWKHKDVZRUNHGLQKLV FDSDFLW\ VLQFH DVWKH$UWLVWLF'LUHFWRURIWKHUHVLGHQWFRPSDQ\ &RPSDQ\ % 7KH VSDFH KDV EHHQ IRUPDWLYH RI $UPILHOG·V WKHDWULFDO DHVWKHWLFLQWZRLPSRUWDQW UHODWHGUHVSHFWV 7KHILUVWLVWKHDEVROXWH FHQWUDOLW\RIWKHDFWRUWR$UPILHOG·VWKHDWUH 7KHVHFRQGLVDGHVLJQ VHQVLELOLW\ LQ ZKLFK VFHQLF HOHPHQWV DUH VXERUGLQDWHG WR WKH SUH HPLQHQFHRIWKHDFWRULQVSDFH $UPILHOG·VGHVLJQHUVWHQGWRIXU QLVK KLP ZLWK HOHJDQW PLQLPDOLVW VHWWLQJV WUHDWLQJ WKH ZDOOV DQG WKH VXUIDFH RI WKH VWDJH DQG OHDYLQJ WR WKH DFWRU WKH UXQ RI WKH VSDFH 7KHLGLRV\QFUDVLHVRIWKHVSDFHLWVHOI EHDULQJWKHWUDFHVRILWVLQGXV WULDO KLVWRU\ H[SRVHG VWUXFWXUDO MRLVWV FRQFUHWH DQG EULFN ZDOOV D UROOLQJ ORDGLQJGRFN GRRU XSVWDJH DQG WKH DZNZDUGQHVV RI DFFHVV WR WKH VWDJH WKH RQO\ HQWUDQFHV WR D KLGGHQ RIIVWDJH DUH RQ WKH SURPSW VLGH RU WKURXJK D FHQWUDO YRPLWRU\ KDYH LQ $UPILHOG·V KDQGV OHQWWKHPVHOYHVWRD¶SUHVHQWDWLRQDO· VW\OHQRWGHSHQGHQWXSRQ QDWXUDOLVWLFLOOXVLRQ EXWH[SORLWDWLYHRIWKHWUDQVIRUPDWLRQDOSRZHURI WKHDWUH 6XEVHTXHQWO\ DV D JXHVW GLUHFWRU DW WKH /LJKWKRXVH &RPSDQ\ $UPILHOG ZDV DEOH WR ZRUN RQ D ODUJH SXUSRVHEXLOW SURVFHQLXP VWDJH IRU WKH ILUVW WLPH GLUHFWLQJ WKH SUHPLHUH RI 3DWULFN :KLWH·V 6LJQDO 'ULYHU IRU WKH $GHODLGH )HVWLYDO 7KH SURGXFWLRQ ZDV ¶UHPDUNDEOH IRU LWV YLVXDO DQG GHVLJQ HIIHFWV LQFOXGLQJ DQ HOHFWULILHG RYHUKHDGZLUHDQGWKHV\PEROLFPXVKURRPFORXGZKLFKVZHOOHGXS DWWKHHQG HQYHORSLQJWKH3OD\KRXVHDXGLHQFH· 7KHIROORZLQJ\HDU DIWHUWKH$XVWUDOLD&RXQFLOIXQGHGDVWXG\WRXUWR(XURSH $UPILHOG ZDV DSSRLQWHG DV $VVRFLDWH 'LUHFWRU DW WKH /LJKWKRXVH XQGHU WKH PHQWRUVKLSRI-LP6KDUPDQ 'XULQJWKH/LJKWKRXVH\HDUV$UPILHOG ZDVVXSSRUWHGE\JHQHURXVVWDWHVXEVLGLHVDQGZDVWKHUHIRUHDEOHWR
1(,/$50),(/'
ZRUNZLWKDFRQVLVWHQWHQVHPEOHRIDFWRUV RQHRIWKHRQO\RFFDVLRQV LQ UHFHQW $XVWUDOLDQ WKHDWUH ZKHQ VXFK DQ HQVHPEOH KDV EHHQ SRVVLEOH ,WZDVGXULQJWKLVSHULRGWKDWKHGHYHORSHGKLVUHODWLRQVKLS ZLWKWKHWKUHHUHVLGHQWSOD\ZULJKWV1RZUD 6HZHOODQG:KLWH 7KHLU FURVVSROOLQDWLQJ H[SHULPHQWV ZLWK GUDPDWLF IRUP UDQJHG IURP WKH HSLFGLGDFWLF 6HZHOO DQG WKH VXUUHDOH[SUHVVLRQLVW :KLWH WR WKH O\ULFDO¶HPEOHPDWLF· 1RZUD 7KH WKUHH ZULWHUV VKDUHG D FRQFHUQ ZLWK WKH GHYHORSPHQW RI D WKHDWULFDO YRLFH WKDW SXVKHG EH\RQG WKH FOLSSHG VDUGRQLF PDVFXOLQHZRUNLQJFODVVYHUQDFXODUWKDWKDGGRPL QDWHGWKHDWWHPSWVRIQDWLRQDOLVWSOD\ZULJKWVRIWKH VWRHVWDEOLVK DGLVWLQFWO\$XVWUDOLDQVWDJHYRLFH ,QLWVSODFH DOOWKUHHVRXJKW²DQG IRXQG²DSRHWLFLGLRPWKURXJKZKLFKFRPSOH[HPRWLRQDODQGSROLW LFDOPDWHULDOFRXOGEHH[SUHVVHGRQ$XVWUDOLDQVWDJHV ,QWKHKRWKRXVH HQYLURQPHQW RI WKH HQVHPEOH $UPILHOG ERWK FRQWULEXWHG KLV RZQ VHQVH RI WKH SRVVLELOLW\ RI VXFK D ODQJXDJH DQG GHYHORSHG KLV RZQ FRQILGHQFHLQDQLQGLJHQLVDWLRQRI(XURSHDQWKHDWUHWH[WV $UPILHOG·V FRPIRUWDEOHQHVV ZLWK DQ LGHQWLILDEO\ $XVWUDOLDQ YRFDOLW\ KDV FDUULHG LQWR KLV VXEVHTXHQW ZRUN RQ FODVVLF WH[WV IURP 6KDNHVSHDUH WR &KHNKRY *RJRODQG,EVHQ ,Q 1RZUD ZURWH RI D¶VHQVH RI IDPLO\ >EHLQJ@ D IHDWXUH RI $UPILHOG·VZRUNLQJ· :LWK&RPSDQ\% $UPILHOGKDVFKDPSLRQHG WKH LGHDO RI WKH HQVHPEOH HYHQ DV IXQGLQJ GULHV XS DQG WKH LGHDO EHFRPHVHYHQPRUHLPSRVVLEOHWRDWWDLQ $UPILHOGKDVUHVSRQGHGE\ JDWKHULQJ DURXQG KLP D ¶IDPLO\· RI FRZRUNHUV ² DFWRUV ZULWHUV GHVLJQHUV FRPSRVHUV ² DOO RI ZKRP DUH FRPIRUWDEOH ZLWK KLV UHKHDUVDO KDELWV DQG ZLWK ZKRP KH LV DEOH WR FUHDWH WKH¶GRPHVWLF· VSDFH ZLWKLQ ZKLFK KH FDQ ZRUN 7KLV GLVFRXUVH RI ¶IDPLO\· LV H[WHQGHG WKURXJKRXW WKH FRPSDQ\·V PDUNHWLQJ VXEVFULEHUV DUH LQYLWHGWREHSDUWRIWKH%HOYRLU&RPSDQ\ DQGIDYRXULWHDFWRUV DUH UHIHUUHG WR DV¶RXU &DWH >%ODQFKHWW@· RU¶RXU *HRIIUH\ >5XVK@· )RU $UPILHOG ¶DSURGXFWLRQFDQRQO\EHWUXO\JUHDWLILWLVDQH[SUHVVLRQ RI DOO RI LWV SDUWLFLSDQWV LI LW LV RZQHG E\ LWV SHUIRUPHUV· ,QGHHG $UPILHOGKDVDUHSXWDWLRQIRUOHDYLQJ¶UHKHDUVDOVVRRSHQHQGHGWKDW FKDRVVWLOOSUHYDLOVMXVWGD\VEHIRUHRSHQLQJ· 6RPHDFWRUVZRUNLQJIRUWKHILUVWWLPHZLWK1HLODUHLQYDUL DEO\ FRQIXVHG , KDYH KHDUG DFWRUV FRPSODLQLQJ RU ZRQGHULQJ SODLQWLYHO\ HVSHFLDOO\ LQ WKH HDUO\ GD\V RI UHKHDUVDO LI KH DFWXDOO\ NQRZV ZKDW KH·V GRLQJ +H·V QRW GRPLQDWLQJ GRHVQ·WWKUXVWLQWHUSUHWDWLRQVGRZQWKHWKURDWV RIKLVFDVWDQGKDVDWHQGHQF\WRZDWFK DEVRUEDQGFRQWHP SODWHZLWKRXWJLYLQJPDQ\KLQWVDVWRZKDWKH·VDIWHU
1(,/$50),(/'
$UPILHOG·V ZRUN LV LQ IDFW PHWLFXORXVO\ SODQQHG $Q DFFRXQW RI $UPILHOG·V UHKHDUVDO RI 6WHSKHQ 6HZHOO·V 7KH %OLQG *LDQW LV 'DQFLQJ GUDZV DWWHQWLRQ WR KLV¶H[WUHPHO\ SUHFLVH LQVWUXFWLRQV· DQG REVHUYHVWKDW¶ Z KLOHFUHDWLQJWKHHIIHFWRIDQXQKXUULHG GHPRFUDWLF DWPRVSKHUH· $UPILHOG·VEORFNLQJRIWKHDFWRUVZDV¶RIWHQSUHVFLSWLYH DQGDXWHXUOLNH· ,QWKHODWH V $UPILHOG·VZRUNDSSHDUHGWREHSXVKLQJLQWZR GLUHFWLRQV 2Q WKH RQH KDQG &RPSDQ\ % UDQ RQ D VKRHVWULQJ EXGJHW DQG HYROYHG D ¶SRRU WKHDWUH· DHVWKHWLF RXW RI HFRQRPLF QHFHVVLW\ 7KH 6HDJXOO ZDV VWDJHG LQ D UHKHDUVDO URRP LQ ZKLFK WKH GHVLJQHUV KDG UHSURGXFHG WKH FKXUFK KDOO LQ ZKLFK WKH SURGXFWLRQ KDG EHHQ ZRUNHG XS IXUQLVKLQJ WKH VHW ZLWK ELWV DQG SLHFHV IURP ORFDO VHFRQGKDQG VKRSV %HDWUL[ &KULVWLDQ·V 7KH *RYHUQRU·V )DPLO\ VHW LQ FRORQLDO 6\GQH\ ZDV VWDJHG RQ WKH EODFNHQHG EXUQWRXW VHW IURP 7KH 6HDJXOO LWV IORRU UHPRYHG DQG UHSODFHG E\ D VTXDUH RI HDUWK 2Q WKH RWKHU KDQG LQ D UHKHDUVDO URRP EDUHO\ PHWUHV IURP%HOYRLU6WUHHW $UPILHOGZRUNHGMXVWDVFRPIRUWDEO\ZLWKLQWKH KLJKEXGJHW WLJKWO\ VFKHGXOHG ZRUOG RI 2SHUD $XVWUDOLD +HUH KH EURXJKWWKHIUHVKQHVVDQGYLJRXUHQJHQGHUHGLQKLVWKHDWUHSUDFWLFH WR SURGXFWLRQV RI -DQDFHN·V &XQQLQJ /LWWOH 9L[HQ DQG -HQXID )RU WKH RSHUD $UPILHOG·V IRFXV ZDV WLJKW DQG KLV VWDJLQJ WKRURXJKO\WKHDWULFDO 3HUIRUPDQFHVZHUHFDUHIXOO\FUDIWHG DQGSORW WUHDWHG ZLWK DEVROXWH FODULW\ 7KH YLVXDO VHQVH QXUWXUHG 8SVWDLUV DW %HOYRLU 6WUHHW ZDV JLYHQ IXOO IORZHU LQ D VHULHV RI PDJLFDO UHYROYHV DQG HOHJDQW PHFKDQLFDO WUDQVIRUPDWLRQV )RU H[DPSOH %LOO\ %XGG ZDVVWDJHGRQDVLPSOHFRQVWUXFWLYLVWSODWIRUP PRXQWHG RQDUHYROYHDQGSLWFKLQJRQK\GUDXOLFUDPV ,Q&ORXGVWUHHW WKHVFDOHDQGFRPSOH[LW\RIDQRSHUDWLFVWDJLQJDQG WKHLQIRUPDOLW\DQGLQWLPDF\RI7KH8SVWDLUV7KHDWUHFDPHWRJHWKHU WRSURGXFHDQLQWLPDWHHSLF 7KHSURGXFWLRQHVWDEOLVKHG$UPILHOGDV WKHSUHHPLQHQW$XVWUDOLDQVWDJHGLUHFWRURIKLVJHQHUDWLRQ 1RWHV
$UPILHOG 1 ¶$XVWUDOLDQ&XOWXUH &UHDWLQJ,WDQG/RVLQJ,W 7KH )RXUWK 3KLOLS 3DUVRQV 0HPRULDO /HFWXUH· %HOYRLU 6WUHHW 7KHDWUH 6\GQH\ 1RYHPEHU SULQWHG LQ HGLWHG IRUP DV ¶'DUH WR 7RXFK WKH 'LYLQH 0U3ULPH0LQLVWHU· 6\GQH\0RUQLQJ+HUDOG 1RYHPEHU :LQWRQ 7LP (QULJKW 1LFNDQG0RQMR -XVWLQ &ORXGVWUHHW 3OD\ 5HGIHUQ 16: &XUUHQF\3UHVV ,ELG 5DGLF / 7KH 6WDWH RI 3OD\ 7KH 5HYROXWLRQ LQ WKH $XVWUDOLDQ 7KHDWUHVLQFHWKH V 5LQJZRRG 9LF 3HQJXLQ%RRNV 1RZUD / ¶1HLO $UPILHOG ² 5DGLFDO &ODVVLFLVW· 1HZ 7KHDWUH $XVWUDOLD
52%(57/(3$*(
$UPILHOG &RVLF 0LULDP ¶%R\ )URP &RPSDQ\ %· LQ 7KH $XVWUDOLDQ 0DJD]LQH ²)HEUXDU\ 1RZUD )HZVWHU 5 ¶$ 'LUHFWRU LQ 5HKHDUVDO 1HLO $UPILHOG DQG WKH &RPSDQ\ % 3URGXFWLRQ RI 7KH %OLQG *LDQW LV 'DQFLQJ E\ 6WHSKHQ 6HZHOO· $XVWUDODVLDQ'UDPD6WXGLHV ²
)XUWKHUUHDGLQJ *ROGHU - DQG 0DGHODLQH 5 ¶(OVLQRUH DW %HOYRLU 6W 1HLO $UPILHOG WDONVDERXW+DPOHW· $XVWUDODVLDQ'UDPD6WXGLHV $SULO ² 5LGJPDQ - ¶,QWHUYLHZ /RXLV 1RZUD 6WHSKHQ 6HZHOO DQG 1HLO $UPILHOG· $XVWUDOLDQ'UDPD6WXGLHV $SULO ² ,$10$;:(//
52%(57/(3$*( ² ,Q 5REHUW/HSDJH·V7KH'UDJRQ·V7ULORJ\ ZDVDERXWDQKRXUORQJ %\ LWZDVPRUHWKDQVL[KRXUVORQJ ,QWZR\HDUVLWKDGJDLQHG ILYHKRXUV DPRQVWURXVVQRZEDOORIDSHUIRUPDQFHWKDWKDGJURZQDQG FKDQJHGZLWKDYLWDOLW\WKDWKDVEHFRPHDKDOOPDUNRI/HSDJH·VSURGXF WLRQV ,Q 7KH 6HYHQ 6WUHDPV RI WKH 5LYHU 2WD UDQ WR DERXW WKUHH KRXUV %\ LWZDVVHYHQKRXUVORQJ KDYLQJUDYHQRXVO\GHYRXUHGDOO WKH LQIOXHQFHV RI LWV SOD\LQJ FRQGLWLRQV ² WKH FRXQWULHV WKH FRPSDQ\ YLVLWHG WKHWUDQVODWLRQVWKH\UHTXLUHG WKHORFDODFWRUVWKH\XVHG ¶:KDW ZH·UH GRLQJ LV PRUH RU OHVV D SXEOLF UHKHDUVDO· VDLG /HSDJH LQJHQX RXVO\ VHHPLQJO\XQDZDUHWKDWKHKDGGRQHPRUHWRUHGHILQHWKHWHUP ¶ZRUNLQSURJUHVV· WKDQDQ\OLYLQJGLUHFWRU )RU/HSDJH DQRSHQLQJQLJKWLVMXVWDQRWKHUPRPHQWLQWKHHYROX WLRQ RI D SURGXFWLRQ WKDW UHDFKHV LWV ILQDO IRUP RQO\ ZKHQ WKH FRPSDQ\ FHDVHV WR SHUIRUP LW )RU /HSDJH WKHDWUH LV PRVW YLEUDQWO\ LWVHOI ZKHQ LW UHVLVWV VROLGLI\LQJ LQWR D IL[HG VWUXFWXUH ZKHQ SOD\V GHYHORSDOLIHRIWKHLURZQDQGGLVFRYHUWKHPVHOYHVWKURXJKWKHFRXUVH RI D UXQ RI SHUIRUPDQFHV 8QGHU /HSDJH·V GLUHFWLRQ SHUIRUPLQJ EHFRPHV DQ DGYHQWXUH DQ H[SORUDWLRQ RI XQFKDUWHG WHUUDLQ DQG WKH SOHDVXUH LW \LHOGV LV GLUHFWO\ UHODWHG WR WKH ULVN WKDW VXFK DQ DSSURDFK LPSOLHV /HSDJH PDNHV WKH FRPSDULVRQ ZLWK WKH HQMR\PHQW RI VSRUW ZKHUHSOD\HUV· VNLOOVDUHWHVWHGLQDQXQFHUWDLQIRUXP ZKHUHWKHUHDUH QR JXDUDQWHHV DQG ZKHUH HYHQ WKH VSHFWDWRUV IHHO WKDW E\ FKHHULQJ WKHPVHOYHV KRDUVH WKH\ DUH FRQWULEXWLQJ WR WKH UHVXOW WKDW LV ILQDOO\ REWDLQHG
52%(57/(3$*(
$SHUIRUPDQFHWKDWLVIRUHYHUHYROYLQJLVE\GHILQLWLRQDSHUIRU PDQFH WKDW LV FUHDWHG FROOHFWLYHO\ E\ D FRPSDQ\ $V WKHUH LV QR VHW VFULSW WKH HYROXWLRQ RI D SHUIRUPDQFH EHFRPHV D FRPPXQDO HQGHDYRXU WKH UHVXOW RI LPSURYLVDWLRQV LQ ZKLFK DFWLRQ UDWKHU WKDQ WH[W EHFRPHV WKH SULQFLSDO PHGLXP LQ ZKLFK WKHDWUH LV FRQFHLYHG ,Q /HSDJH·V ZRUN SHUIRUPDQFH LV QR GLIIHUHQW WR UHKHDUVDOV ZKLFK WRR EHJLQQRWZLWKDWH[WEXWZLWKDQLGHD :RUNRQ 6HYHQ6WUHDPV RI WKH 5LYHU 2WD IRU LQVWDQFH EHJDQ ZLWK QRWKLQJ PRUH FRQFUHWHWKDQDGHVLUHWRGRVRPHWKLQJDERXW+LURVKLPD 6LPLODUO\ 7HFWRQLF3ODWHV EHJDQZLWK¶MXVWDQLQWXLWLRQ 7KHQHYHU\RQHLQ WKHFRPSDQ\JLYHVWKHLULPSUHVVLRQ· 2XUFUHDWLYHZRUNEHJLQVZLWKDKXJHEUDLQVWRUPLQJDQGD FROOHFWLYH GUDZLQJ VHVVLRQ ZKHUH LGHDV DUH JURXSHG WRJHWKHU 7KHQ ZHGLVFXVVLGHDVWKDWKDYHEHHQVLQJOHGRXW ZKLFK OHDGV XV WR LPSURYLVDWLRQ 7KHQ WKHUH·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·V SUHRFFXSDWLRQ ZLWK LQYROYLQJ WKHDFWRUVLQWKHSURFHVVRIGHYHORSLQJSHUIRUPDQFHVLVWKHSUROLIHUD WLRQRIWKHPRVWH[TXLVLWHVWDJHLPDJHVLQKLVGUDPDV :KHWKHULWLV WKHPDQQHULQZKLFKDSDUNLQJDWWHQGDQW·VERRWKEHFRPHVDVWDLUFDVH OHDGLQJ GRZQ LQWR D EDVHPHQW LQ 7KH 'UDJRQ·V 7ULORJ\ RU D KXJH V\ULQJHLQMHFWLQJQDUFRWLFVLQWRDJLJDQWLFVLOKRXHWWHGDUPLQ1HHGOHV DQG2SLXP /HSDJH·VSURGXFWLRQVVSHDNZLWKDYLEUDQWYLVXDO HORTXHQFH $V /HSDJH·V DFWRUV ZRUN ZLWK PRYHPHQW DV ZHOO DV
52%(57/(3$*(
ODQJXDJH WKH\ UHWDLQ WKH SRVVLELOLW\ RI DOORZLQJ DFWLRQ WR LQIOXHQFH VSHHFK UDWKHU WKDQ KDYLQJ JHVWXUHV IROORZ IRUHYHU RQ WKH KHHOV RI ZRUGV SHQQHG LQ WKH DEVHQFH RI WKHDWULFDO LPSHUDWLYHV +LV VWDJH LPDJHVDUHWKHUHVXOWRIWKLVLQYHUVLRQ DGHPRQVWUDWLRQRIWKH DELOLW\ RIDFWLRQWRLPLWDWH²DQGHYHQVXUSDVV²WKHFDSDFLW\RIODQJXDJHWR FRPPXQLFDWH LQ PHWDSKRUV 7KH WUDQVIRUPDWLRQ RI 6WHOOD LQ 7KH 'UDJRQ·V 7ULORJ\ LV D JRRG H[DPSOH RI WKH LURQ\ E\ ZKLFK D SURVDLF FRQFHUQ ZLWK WKHDWULFDO SUDFWLFDOLWLHV JHQHUDWHV D PRPHQW RI UDUH SRHWU\RQVWDJH ,Q 7KH 'UDJRQ·V 7ULORJ\ /RUUDLQH &RWH SOD\HG ERWK D QXQ DQG 6WHOOD« 7KHUH ZDVQ·W HQRXJK WLPH IRU /RUUDLQH WR FKDQJH FRVWXPHV VR , WROG KHU WR ZHDU 6WHOOD·V FRVWXPH XQGHU KHU QXQ·V WXQLF DQG ZKHQ VKH UDQ EDFNVWDJH VKH ZRXOGRQO\KDYHWRWDNHRIIRQHVHWRIFORWKLQJ %XWWKLVVWLOO GLGQ·W ZRUN 6R ZH KDG WR KDYH KHU WDNH KHU WXQLF RII LQ IURQWRIWKHZKROHDXGLHQFH«VRWKDW/RUUDLQHZDVJUDGX DOO\ WUDQVIRUPHG LQWR 6WHOOD« :H LQYHQWHG D ZKROH ULWXDO WR JLYH WKH WUDQVIRUPDWLRQ PHDQLQJ DQG LW EHFDPH RQH RI WKH PRVW EHDXWLIXO PRPHQWV RI WKH HQWLUH VL[ KRXUV RI 7ULORJ\ $OOEHFDXVHRQHDFWRUGLGQ·WKDYHWKHWLPHWRFKDQJH FRVWXPHV ,ELG /HSDJH VSHFXODWHV WKDW VRPH RI 6KDNHVSHDUH·V EHVW PRQRORJXHV ZHUHZULWWHQWRKROGWKHDWWHQWLRQRIWKHDXGLHQFHGXULQJHODERUDWH VFHQHFKDQJHV ,QERWKFDVHVWKHPXQGDQHEXVLQHVVRIVWDJLQJJHQHU DWHVDQLQDGYHUWHQWO\ULFLVPZKRVHDSSHDOLVIDULQH[FHVVRIDQ\WKLQJ RQH PLJKW H[SHFW JLYHQ WKH VHQVH RI FRPSURPLVH DQG FRQWULYDQFH WKDWPDUNVWKHLULQYHQWLRQ $V DFWRUV XVH WKH FRQFUHWH FRRUGLQDWHV RI VSDFH UDWKHU WKDQ WKH DEVWUDFW YHKLFOH RI ODQJXDJH DV WKH PHGLXP LQ ZKLFK WKHLU SHUIRU PDQFHV DUH FRQVWUXFWHG WKH\ VWXPEOH QRW RQO\ XSRQ PHVPHULVLQJ LQGLYLGXDOLPDJHVEXWDOVRRQZD\VRIQDUUDWLQJVWRULHVWKDWDUHUDGL FDOO\GLIIHUHQWIURPDQ\WKLQJZULWHUVDUHDEOHWRSURGXFHZKHQ WKH\ ZRUN DW GHVNV UDWKHU WKDQ LQ WKHDWUHV ,Q 7KH 'UDJRQ·V 7ULORJ\ IRU H[DPSOH WKH VWRU\ RI &UDZIRUG·V OLIH IURP \RXWK WR ROG DJH LV FRPSUHVVHG LQWR D IHZ VHFRQGV DV KLV FRDW LV ZRUQ LQ WXUQ E\ WKH WKUHHDFWRUVZKRSOD\KLPDWGLIIHUHQWDJHVWKURXJKWKHFRXUVHRIWKH GUDPD ,Q WKH VDPH SHUIRUPDQFH VKRHV DUH XVHG WR GHSLFW WKH PRVW DIIHFWLQJHYHQWVZLWKDIRUFHWKDWLVSURSRUWLRQDOWRWKHLUVLPSOLFLW\
52%(57/(3$*(
,Q 7KH 'UDJRQ·V 7ULORJ\ VKRHV ZHUH D SRZHUIXO UHVRXUFH IRU VWRU\WHOOLQJ $ SDLU ZDV WDNHQ RXW RI D VXLWFDVH WR VKRZ D FKLOG·VILUVWVWHSV DQGWKHQELJJHUDQGELJJHUVKRHVVKRZHG WKH FKLOG·V JURZWK $QRWKHU SDLU ZDV SXW LQWR D VXLWFDVH WR VLJQLI\DPRWKHU·VGHDWK 6KRHVZHUHDOVRFDUHIXOO\OLQHGXS DOO DORQJ WKH VHW E\ DQRWKHU FKDUDFWHU RQO\ WR EH WUDPSOHG E\ VROGLHUV ZDONLQJ RQ LFH VNDWHV ² DQ XQXVXDO EXW PRVW SRZHUIXOHYRFDWLRQRIWKH6HFRQG:RUOG:DU·VGHVWUXFWLRQ 7KXV WKH PRVW PRGHVW RI VWDJH SURSV WKH PRVW FRPPRQ REMHFWVRIGDLO\OLIHZHUHXVHGWRVKRZELUWK OLIHDQGGHDWK WKHORYHRIDIDWKHUDQGPRWKHUDQGWKHKLGHRXVGHYDVWDWLRQ RIZDU ,ELG ² 7KLVLV/HSDJHDWKLVEHVW²DQGKLVPRVWW\SLFDO 7RFULWLFVVFKRROHG LQWKHYLUWXHVRIJRRGGUDPDWLFODQJXDJH WKLVLVVOHLJKWRIKDQG 7R WKRVHZKRDUHDEOHWRDSSUHFLDWHWKHSRWHQWLDOIRUVHPLRWLFHOHJDQFH ZLWKLQQRQOLQJXLVWLFVWUXFWXUHV WKLVLVWKHZRUNRIDPDJLFLDQ 3DUWRIWKHDSSHDORIWKLVHVVHQWLDOO\YLVXDOUDWKHUWKDQDXUDOPRGH RIFRPPXQLFDWLRQLVWKDWLWUHTXLUHVWKHLPSOLFLWFRRSHUDWLRQRIWKH DXGLHQFH /HSDJH KDV ORQJ DUJXHG WKDW WRGD\·V DXGLHQFHV KDYH VR PXFK H[SRVXUH WR FLQHPD DQG WHOHYLVLRQ WKDW WKH\ EULQJ WR WKH WKHDWUH WHFKQLTXHV RI GHFRGLQJ DFWLRQ WKDW WKH WKHDWUH GRHV QRW VXIILFLHQWO\XWLOLVH :H WHQG WR GR WKHDWUH LQ D PDQQHU ZKHUH ZH·UH XVLQJ DQ ROG ZD\ RI WHOOLQJ VWRULHV EHFDXVH ZH WKLQN SHRSOH DUH REWXVH DQG WKDW WKH\ RQO\ KDYH WKLV ROG IDVKLRQHG ZD\ RI XQGHUVWDQGLQJDVWRU\ ,QIDFWSHRSOHDUHH[WUHPHO\PRGHUQ « WKH\ ZDWFK 79 WKH\ NQRZ ZKDW D IODVKEDFN LV WKH\ XQGHUVWDQGWKHFRGHVRIDIODVKIRUZDUG WKH\NQRZZKDWD MXPS FXW LV 7KH\ NQRZ DOO WKHVH WKLQJV WKDW ZH GLGQ·W NQRZ ZKHQ ZH VWDUWHG WR JR DQG VHH WKHDWUH $QG LI \RX GRQ·W XVH WKDW \RX GRQ·W WULJJHU WKDW RI FRXUVH WKH\·UH ERUHG ,URQLFDOO\ WKH SRHWU\ WKDW DWWDFKHV WR WKH XVH RI FLQHPDWLF WHFK QLTXHVLQWKHWKHDWUHLVIDUJUHDWHUWKDQWKDWZKLFKDFFUXHVWRDILOP WKDWXVHVWKHVDPHPHWKRGV &LQHPDLVIDUWRROLWHUDODPHGLXPWREH DEOH WR XVH WKHDWULFDOLW\ ZLWKRXW VHHPLQJ QHHGOHVVO\ REWXVH DQG H[WUDYDJDQW ,WLVEHFDXVHWKHDWUHLVVROLPLWHGE\FRPSDULVRQWKDWLWV SRWHQWLDOIRUWKHXVHRIWKHLPDJLQDWLRQLVVRJUHDW
52%(57/(3$*(
/HSDJH·V IDFLOLW\ ZLWK WKH XVH RI FLQHPDWLF WHFKQLTXHV GHULYHV IURPWKHIDFWWKDWKHZRUNVLQERWKILHOGV²DQGRIWHQRQWKHVDPH PDWHULDO 7KLV KDV PDGH SRVVLEOH D GHJUHH RI FURVVIHUWLOLVDWLRQ WKDW KDVSURGXFHGDSOHWKRUDRILQWHUHVWLQJHIIHFWV ,Q &LUFXODWLRQV IRULQVWDQFH WKHUH·VDVFHQHLQZKLFKWZRJX\VDQGDJLUODUHVPRNLQJD MRLQW LQ D PRWHO TXLHWO\ WDONLQJ LQ WKH PRRQOLJKW WKDW·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·VGUDPDVRSRHWLF ,Q /HSDJH·V GUDPD WKH DELOLW\ RI IRUP WR HFKR FRQWHQW LV QRW PHUHO\SRHWLFEXWV\PSWRPDWLFRIKLVSUHRFFXSDWLRQZLWKFRQQHFW HGQHVV JHQHUDOO\ $OPRVW DOO /HSDJH·V SOD\V PDNH FRQQHFWLRQV EHWZHHQ LQWXLWLYHO\ GLVVLPLODU WKLQJV 6HYHQ 6WUHDPV RI WKH 5LYHU 2WD GHDOV ERWK ZLWK )UHQFK &DQDGLDQ LQGHSHQGHQFH DQG WKH -DSDQHVH SKRHQL[ ULVLQJ RXW RI WKH DVKHV RI +LURVKLPD 7KH PRUH UHFHQW *HRPHWU\RI0LUDFOHV SXWVWKHHVRWHULFSKLORVRSK\RI*XUGMLHII WRJHWKHUZLWKWKHDUFKLWHFWXUHRI)UDQN/OR\G:ULJKW ¶,WKLQNWKDW WKLQJVDUHFRQQHFWHGGHHSO\DQGDVDQDXWKRURUGLUHFWRU \RXKDYH WRNQRZKRZWREHDELWRIDQDQWKURSRORJLVWRUDUFKDHRORJLVW· VD\V /HSDJH 7KLV VHQVH RI DOPRVW P\VWLFDO RQHQHVV XQGHUO\LQJ WKH IUDF WXUHGVXUIDFHRIRXUSHUFHSWLRQRIWKHZRUOGJLYHV/HSDJH·VSOD\VDQ DQFKRU :KLOH /HSDJH·V WKHDWUH FDQ VRPHWLPHV EH PXOWLIDFHWHG WR WKHSRLQWRIEHLQJFKDRWLF KLVDOPRVWVDFUHGVHQVHRIWKHLPSRUWDQFH RI FRLQFLGHQFH NHHSV KLV WKHDWUH ILUPO\ URRWHG LQ D VDIHW\ QHW RI VHUHQGLSLWRXV DIILQLWLHV )RU /HSDJH D FRLQFLGHQFH LV D UHYHODWLRQ RI
6,0210 & %851(<
WKHFRQFHDOHGV\QFKURQLFLW\RIOLIH DKDUELQJHURI ¶DVHQVHRIVSLULWX DOLW\· WKDW WKH WKHDWUH DORQH FDQ GLVFRYHU :KDW :ULJKW·V DUFKLWHFWXUHKDVLQFRPPRQZLWK*XUGMLHII ·VGDQFHVHTXHQFHVLVWKDW WKH\ DUH ERWK DWWHPSWV WR GLVWLO ZLWKLQ WKH FRQILQHV RI D SK\VLFDO IRUP D PHWDSK\VLFDO SHUFHSWLRQ WKDW GHILHV FRUSRUHDO DVVLPLODWLRQ )RU/HSDJH WKHDWUHLVLWVHOIDVLPLODUHQWHUSULVH DQDWWHPSWWRILQG LQ WKHFULWLFDOPRPHQWRISHUIRUPDQFH DWUDFHRIWKHKDUPRQ\WKDW LV REVFXUHGE\WKHDEXQGDQFHDQGGLYHUVLW\RIPDWHULDOH[LVWHQFH 1RWHV
'HOJDGR 0DULD 0 DQG +HULWDJH 3 HGV ,Q &RQWDFW :LWK WKH *RGV" 'LUHFWRUV 7DON 7KHDWUH 0DQFKHVWHU DQG 1HZ
)XUWKHUUHDGLQJ /HSDJH 5 &RQQHFWLQJ)OLJKWV WUDQV :DQGD5RPHU7D\ORU /RQGRQ 0HWKXHQ 6+20,70,77(5
6,0210&%851(< ²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·V PRVW SRSXODU FULWLFDOO\ ODXGHG DQG LQIOXHQWLDO WKHDWUH FRPSDQLHV 6XFFHVVIXOO\ QDYLJDWLQJ WKH DSSDUHQW GLYLGH EHWZHHQ DYDQWJDUGH H[SHULPHQW DQG D SRSXODU PDLQVWUHDP &RPSOLFLWH KDV EHFRPH NQRZQ LQWHUQDWLRQDOO\ IRU WKH SK\VLFDO GH[WHULW\ DQG GDUNO\ FRPLF LQYHQWLYHQHVV RI LWV FROODERUD WLYHO\ GHYLVHG ZRUN DQG WKH IOXLG GUDPDWXUJLHV RI LWV SURGXFWLRQV RIFODVVLFWH[WV DQGDGDSWDWLRQVRIFRQWHPSRUDU\ILFWLRQ $VDUWLVWLF GLUHFWRU RI &RPSOLFLWH 0F%XUQH\ KDV GLUHFWHG DOPRVW DOO RI WKH
6,0210 & %851(<
FRPSDQ\·VVKRZVLQWKHSDVWWHQ\HDUVWRSURGXFHDERG\RIZRUNRI UHPDUNDEOH IRFXV HQHUJ\ DQG GLYHUVLW\ $W WKH VDPH WLPH KH KDV FRQWLQXHGWRZRUNLQWHUQDWLRQDOO\DVDIUHHODQFHWKHDWUHGLUHFWRUDQG DQDFWRULQERWKILOPDQGWHOHYLVLRQ +DYLQJ WUDLQHG DV D SHUIRUPHU ZLWK /HFRT 0F%XUQH\ EULQJV DQ HPERGLHGXQGHUVWDQGLQJRIWKHSUHGLFDPHQWRISHUIRUPHUVWRKLVZRUN DV D GLUHFWRU DQG LQ SDUWLFXODU WR WKH QHFHVVLW\ IRU FROODERUDWRUV WR JHQHUDWHDFRPPRQODQJXDJH $WWKHRXWVHWRIDQ\GHYLVLQJSURFHVV²DOO RI 0F%XUQH\·V ZRUN VKRXOG EH YLHZHG WKURXJK WKH OHQV RI GHYLVLQJ LQFOXGLQJ ZRUN RQ H[LVWLQJ WH[WV ² KLV SULPDU\ FRQFHUQ LV WR WU\ WR LQYHQWWKHFRQGLWLRQVIRULQYHQWLRQWKURXJKWKHSUHSDUDWLRQRI ERGLHV YRLFHVDQGLPDJLQDWLRQV ¶,SUHSDUHWKHPVRWKDWWKH\DUHUHDG\ UHDG\WR FKDQJH UHDG\WREHVXUSULVHG UHDG\WRVHL]HDQ\RSSRUWXQLW\WKDWFRPHV WKHLUZD\· 0F%XUQH\ $QXPEHURI0F%XUQH\·VORQJWHUP FROODERUDWRUV DOVR WUDLQHG ZLWK /HFRT DQG WKH\ VKDUH D FHUWDLQ VKRUW KDQG LQ WHUPV RI H[HUFLVHV GLVFRXUVHV DQG GLVSRVLWLRQV WRZDUGV WKH PDNLQJ RI SHUIRUPDQFH 2YHU WKH \HDUV KRZHYHU &RPSOLFLWH KDV EHFRPH DQ LQFUHDVLQJO\ ORRVH DOOLDQFH RI FROODERUDWRUV UDWKHU WKDQ D SHUPDQHQW FRPSDQ\ ZLWK QHZ PHPEHUV MRLQLQJ WKRVH ZLWK VRPH JUHDWHUFRQWLQXLW\IRUSDUWLFXODUSURMHFWV ,QDGGLWLRQ 0F%XUQH\·VIUHH ODQFHZRUNEULQJVKLPLQWRFRQWDFWZLWKDFWRUVODUJHO\XQIDPLOLDUZLWK WKHXQSUHGLFWDEOHDQGGLIILFXOWMR\VRIGHYLVLQJ WKHRFFDVLRQDOWHUURUVRI VHWWLQJRIILQWRWKHXQNQRZQDQGJHWWLQJYHU\ORVW ,QUHFHQW\HDUV IRU H[DPSOH KHKDVGLUHFWHGSURGXFWLRQVIRUWKH1DWLRQDO$FWRUV· 7KHDWUH LQ1HZ
6,0210 & %851(<
WHUPV RI UK\WKP DOPRVW OLNH PXVLF LQ WHUPV RI FRXQWHU SRLQW KDUPRQ\ LPDJHDQGDFWLRQ PRYHPHQWDQGVWLOOQHVV ZRUGVDQGVLOHQFH 0F%XUQH\ $WWKHRXWVHWRIDUHKHDUVDOSURFHVV SDUWLFXODUHPSKDVLVLVSODFHG RQWKHHVWDEOLVKPHQWRIDSOD\VSDFH ZLWKDOOVRUWVRIREMHFWV PDWH ULDOV UHVHDUFK GRFXPHQWDWLRQ JDPHV DQG RWKHU UXOH RU HYHQWEDVHG SUDFWLFHV DYDLODEOH IRU LQGLYLGXDO DQG FROOHFWLYH H[SORUDWLRQ 0F%XUQH\ KDV XVHG WKH ZRUG¶SOD\JURXQG· DQG RIWHQ UHLWHUDWHV D FRQQHFWLRQ ZLWK WHDP VSRUWV 7KH SUHFLVH QDWXUH DQG XVH RI WH[WV PXVLF REMHFWV DQG RWKHU VFHQRJUDSKLF PDWHULDOV ZLWKLQ D SURGXF WLRQ DVZHOODVWKHGHWDLOHGWH[WXUHRILWVFRPSRVLWLRQDOZHDYH DUHDOO GHWHUPLQHG RYHU WLPH LQ WKH VWXGLR DFFRUGLQJ WR D SUDJPDWLFV RI ZKDW VHHPV WR VXSSRUW DQG IHHG WKH HPHUJHQFH RI D VKDUHG GHHS EUHDWKLQJ¶ZRUOG· ,Q EURDG WHUPV WKH GHYLVLQJ PRGHO VWHPV IURP /HFRT·V DXWRFRXUV D KHXULVWLF SHGDJRJ\ RI WKH LPDJLQDWLRQ LQ FRQWH[WVZKHUHFROODERUDWLYHZRUNWDNHVSODFH DIOH[LQJDQGWRQLQJ RIWKH¶PXVFOHRIWKHLPDJLQDWLRQ· LQVHDUFKRID¶PRPHQWRIFROOHF WLYHLPDJLQLQJ· 0F%XUQH\ 2QDQRWKHUOHYHO LWUHODWHVWR WKHLQIRUPHGVLQNRUVZLPSUHGLFDPHQWRIVWUHHWWKHDWUHDQGVWDQG XS RU WKH SDWLHQW LPPHUVLYH KRWKRXVH RI FHUWDLQ FKRUHRJUDSKLF RU SK\VLFDO WKHDWUH SUDFWLFHV WKDW HQGHDYRXU WR VSDWLDOLVH WKH WRSRJUD SKLHVRILQWHUQDOMRXUQH\V 2Q\HWDQRWKHUOHYHO SHUKDSVOHVVYLVLEOH EXW PDWHULDOO\ FRQVWLWXWLYH 0F%XUQH\·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·V ILFWLRQ WR FUHDWH VRPHWKLQJ XQLTXH LQ FRQWHPSRUDU\ SRSXODU WKHDWUH 0F%XUQH\·V ZRUN VLQFH WKH HDUO\ V SURSRVHV D GLVWLQFWO\ (XURSHDQ PXOWLOLQJXDO SRHWLF LQWH JUDWLQJLPDJH QDUUDWLYHDQGDFKRUHRJUDSK\RIERGLHV REMHFWVDQG VSDFH WR SURGXFH D FRQWHPSRUDU\ *HVDPWNXQVWZHUN :LWKLQ WKLV V\PSKRQLF IRUP WKH FUHDWLYH DJHQF\ RI SHUIRUPHUV DQG WKHLU ERGLHVFRPSULVHVWKHYHU\IRXQGDWLRQIRUDFRPSDVVLRQDWHFHOHEUD WLRQRIWKHH[WUDRUGLQDU\LQWKHHYHU\GD\DQGWKHPDUJLQDOLVHG DQG
6,0210 & %851(<
DQ DUWLFXODWH KXPDQLVW HQTXLU\ LQWR D¶SROLWLFV RI WKH LPDJLQDWLRQ· 0F%XUQH\ 2QHRI0F%XUQH\·VPRVWUHPDUNDEOHDWWULEXWHVLVKLVIDFLOLW\IRU FUHDWLQJ LPDJHV WKDW GHIDPLOLDULVH DQG UHGLUHFW WKH JHRPHWU\ RI FRQYHQWLRQDO UHFHLYHGDWWHQWLRQWRUHDOLW\ DQGHWFKWKHPVHOYHV LQWR RXULPDJLQDWLRQV +HUH¶LPDJH· LVQRWVLPSO\SLFWRULDOUHSUHVHQWDWLRQ RUFRXSGHWKpkWUH EXWUDWKHUDFRPSOH[ G\QDPLFV\QWD[DOO\LQJDQG OD\HULQJ PRYHPHQW UK\WKP WH[W PXVLF DQG REMHFW HQJHQGHUHG E\ WKHSRHWLFORJLFRIWKHIRUPVDQGQDUUDWLYHVDWSOD\ZLWKLQDSURGXF WLRQ LPDJH DV WKH IXVLRQ RI IRUP DQG FRQWHQW LQ DQ HPERGLHG LI IOHHWLQJ ¶ZRUOG· 0QHPRQLF IRU H[DPSOH LV KDXQWHG E\ WKH DPELJXLWLHV RI QHZ WHFKQRORJLHV RI FRPPXQLFDWLRQ WKH PRELOH SKRQH DQG UHFRUGLQJ YLGHR 7KH SKRQH OLQH EUHDNV XS DW PRPHQWV RI LQWHQVH¶SUR[LPLW\· SDLQIXOO\ UHLQVWDWLQJ GLVWDQFH DQG DEVHQFH DQGPHPRU\LVUHSOD\HGDQGIDVWIRUZDUGHGUHSHDWHGO\ DVLI LWZHUHD9&5 LQDQREVHVVLYHVHDUFKIRUWKH¶UHDO· DQGIRU¶RULJLQV· $WWLPHVWKHGLVFRQWLQXRXVUK\WKPRIWKHUHPRWHFRQWURORUWKHHGLW VXLWH FRQVFLRXVO\ GHWHUPLQHV WKH VWDJLQJ LWVHOI OLYH VHTXHQFHV DUH ¶UHZRXQG· DW YHUWLJLQRXV VSHHG DQG UHSOD\HG DJDLQ DQG DJDLQ LQ D F\FOHRIUHSHWLWLRQVZLWKGLIIHUHQFH 0F%XUQH\·V GUDPDWXUJLHV RI HPHUJHQFH DQG GLVVROXWLRQ DOORZ KLJKO\ IRFXVHG ¶LPDJHZRUOGV· WR DSSHDU IURP WKH GHSOR\PHQWV LQWHUDFWLRQV DQG WUDQVSRVLWLRQV RI ERGLHV DQG REMHFWV DQG WR FU\V WDOOLVH LQWR HSKHPHUDO VKDUSHGJHG IRUP EHIRUH WKHLU FRQVWLWXHQW HOHPHQWV DUH GLVSHUVHG DQG UHWXUQHG WR D VWDWH RI HQHUJLVHG SRWHQ WLDOLW\ ,Q 7KH 7KUHH /LYHV RI /XFLH &DEURO IRU H[DPSOH DQ H[SORVLYH PDQLSXODWLRQ RI ZRRGHQ SODQNV LV XVHG WR UHSUHVHQW WKH G\QDPLFVRIGHVLUHDQGWKHSUHFDULRXVXQFHUWDLQW\RIUHIXJHDV -HDQ DQG /XFLH PDNH ORYH LQ D¶EDUQ· ,Q 0QHPRQLF D EURNHQ ZRRGHQ FKDLU DOUHDG\ D PQHPRQLFE\DVVRFLDWLRQ IRU WKH PDLQ FKDUDFWHU 9LUJLO·V IDWKHU DQG KLV DEVHQW ORYHU LV SXSSHWHG WKHQ ODLG RXW WR UHSUHVHQW WKH OHDWKHU\ UHPDLQV RI D ²\HDUROG 1HRWKLOLF ¶LFHPDQ· UHFHQWO\ GLVFRYHUHG LQ WKH 7\UROHDQ $OSV :LWK WKH HFRQRP\RIDKDLNX DZKLWHFORWKLVWKURZQRYHULW DQGWKHFKDLU EHFRPHV D JODFLHU $V WKH IDWKHU VD\V LQ 7KH 6WUHHW RI &URFRGLOHV ¶7KH PLJUDWLRQ RI IRUPV LV WKH HVVHQFH RI OLIH· 6LQFH WKH HODVWLFWHPSRUDOLWLHVDQGPDJLFDOPHWDPRUSKRVHVRIWKLVDVWRQLVKLQJ SURGXFWLRQ ZLWKLQZKLFKWKHODZVRI1HZWRQLDQSK\VLFVVHHPHGWR EHPRPHQWDULO\VXVSHQGHGDVERRNVIODSSHGDQGIOHZOLNHELUGV DQG DVSHFWUDOILJXUHVWUROOHGYHUWLFDOO\GRZQWKHEDFNZDOODQGLQWRWKH VSDFH GLVSODFHPHQW FRQQHFWLYLW\ DQG WKH IOXLGLW\ RI PHPRU\ DQG LGHQWLW\ KDYH EHFRPH UHFXUUHQW WKHPHV LQ 0F%XUQH\·V ZRUN
6,0210 & %851(<
$FFRUGLQJO\ LQ DOO RI KLV SURGXFWLRQV WKH PDWHULDO FRPSRQHQWV RI VFHQRJUDSK\ DUH HQFRXUDJHG WR PXWDWH DQG UHFRPSRVH WR GLVSODFH WUDQVIRUP DQG UHLQYHQW WKHPVHOYHV WHPSRUDULO\ DGRSWLQJ HSKHPHUDO FRQILJXUDWLRQV DQG LGHQWLWLHV ZLWKLQ D WKHDWUH ODQJXDJH WKDW LWVHOI LV DOZD\V PLJUDWLQJ WUDQVIRUPLQJ DOZD\V RQ WKH PRYH 7KH RQO\ FRQVWDQW LV FKDQJH WKH SURWHDQ¶SOD\·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·V6WULQJ4XDUWHWQR LQ(0LQRUZDVUHPHPEHUHGLQWKHFRQWH[WRI6RYLHWKLVWRU\DQG WKHFRPSRVHU·VWURXEOHGOLIHXQGHU6WDOLQLVP H[LOH GHVLUH ORVVDQGWKH VOLSSHULQHVVRIUHODWLRQVEHWZHHQKLVWRU\ DUFKDHRORJ\DQGPHPRU\LQ 0QHPRQLF WKH W\UDQQLHV RI H[WUHPLVP DQG [HQRSKRELF IHDU LQ 7KH 5HVLVWLEOH 5LVH RI $UWXUR 8L 0F%XUQH\·V 1HZ
7KHVH LQFOXGH 3XW LW RQ \RXU +HDG $ 0LQXWH 7RR /DWH 0RUH%LJJHU6QDFNV1RZ $Q\WKLQJIRUD4XLHW/LIH %XUQLQJ
3(7(56(//$56
$PELWLRQ IRU%%& 0QHPRQLF IRUERWKWKHDWUH DQGUDGLR DQG7KH1RLVHRI7LPH ZLWKWKH(PHUVRQ6WULQJ4XDUWHW 'UHQPDWW·V 7KH 9LVLW 6KDNHVSHDUH·V 7KH :LQWHU·V 7DOH %UHFKW·V7KH&DXFDVLDQ&KDON&LUFOH ,RQHVFR·V7KH&KDLUV 7KH6WUHHWRI&URFRGLOHV DGDSWHGIURPWH[WVE\%UXQR6FKXO] 2XW RID+RXVH:DONHGD0DQ IURP'DQLLO.KDUPV 7KH7KUHH/LYHVRI /XFLH&DEURO IURP-RKQ%HUJHU·V3LJ(DUWK )RH IURP-0 &RHW]HH 7R WKH :HGGLQJ IURP -RKQ %HUJHU IRU %%& 5DGLR /LJKW IURP7RUJQ\/LQGJUHQ 7KH(OHSKDQW9DQLVKHV IURP +DUXNL0XUXNDPL $VDQDFWRU 0F%XUQH\·VILOPFUHGLWVLQFOXGH 6OHHS\+ROORZ .DIND 7RP DQG9LY 0HVPHU &RXVLQ%HWWH 2QHJLQ DQGWKHWLWOHUROHLQ(LVHQVWHLQ ¶7KHUH LV D FXULRXV DQG YHU\ GLIIHUHQW VHQVDWLRQ ZKHQ \RX DSSDUHQWO\ KDYHVRPHWKLQJLQ\RXUKDQGV²DSOD\²DQGZKHQ\RXKDYHQRWKLQJ EXW IUDJPHQWV VFUDSV DQG LPDJLQLQJV ZKHQ \RX DUH GHYLVLQJ \HW VWUDQJHO\,IHHO,VWDUWIURPWKHVDPHSODFH XQWLO,VWDUWWRIHHODQGH[SH ULHQFHVRPHWKLQJ WKHUHLVQRWKLQJ· 0F%XUQH\ 7RXW ERXJH ¶(YHU\WKLQJ PRYHV· ZDV WKH WLWOH RI WKH OHFWXUH GHPRQVWUDWLRQ -DFTXHV /HFRT SHUIRUPHG LQWHUQDWLRQDOO\ WR JUHDW DFFODLP IURP WKH ODWH V RQZDUGV $V 0F%XUQH\ SRLQWV RXW LQ KLV IRUHZRUGWR/HFRT·V7KH0RYLQJ%RG\ LWZDVDOVR¶DFHQWUDOWHQHWRIKLV WHDFKLQJ· /HFRT [
)XUWKHUUHDGLQJ /HFRT -DFTXHV 7KH 0RYLQJ %RG\ 7HDFKLQJ &UHDWLYH 7KHDWUH WUDQV 'DYLG%UDGE\ /RQGRQ 0HWKXHQ )RUHZRUGE\6LPRQ0F%XUQH\ 0F%XUQH\ 6LPRQ ¶7KH&HOHEUDWLRQRI/\LQJ· LQWHUYLHZLQ7XVKLQJKDP 'DYLG HG /LYH )RRGIRUWKH6RXO /RQGRQ 0HWKXHQ ² ³³ ,QWHUYLHZ LQ *LDQQDFKL *DEULHOOD DQG /XFNKXUVW 0DU\ HGV 2Q'LUHFWLQJ ,QWHUYLHZVZLWK'LUHFWRUV /RQGRQ )DEHU )DEHU ² 7KHDWUHGH&RPSOLFLWH &RPSOLFLWH3OD\V 7KH6WUHHWRI&URFRGLOHV 7KH 7KUHH/LYHVRI/XFLH&DEURO 0QHPRQLF /RQGRQ 0HWKXHQ 7KHDWUHGH&RPSOLFLWHZHEVLWH KWWS ZZZFRPSOLFLWHRUJ '$9,':,//,$06
3(7(56(//$56 ² $ JUDGXDWH RI +DUYDUG 8QLYHUVLW\ ZKHUH KH VWDJHG QXPHURXV DOOHJHGO\ RXWUDJHRXV SURGXFWLRQV 6HOODUV LV D SRO\PDWK ZKR GLUHFWV WKHDWUH RSHUD WHOHYLVLRQ ILOP IHDWXUH ILOP DQG URFN YLGHR +H KDV DSSHDUHGLQ%LOO0R\HUV· 0LDPL9LFH DQG7KH(TXDOL]HU DVZHOODVLQ -HDQ/XF*RGDUG·VILOPRI.LQJ/HDU 6HOODUVKDGSHUIRUPHGLQ KLV RZQ XQGHUJUDGXDWH /HDU LQ ZKHQ DQ RQVWDJH /LQFROQ
3(7(56(//$56
&RQWLQHQWDO SXUSRUWHGO\ WKH V\PERO RI /HDU·V SRZHU ZDV RVWHQWD WLRXVO\VWULSSHGGRZQWRLWVFKDVVLVHYHU\QLJKW 3UHFRFLW\ DQG ]HDO FRPELQHG ZKHQ KH VHUYHG DV WKH DUWLVWLF GLUHFWRU RI WKH %RVWRQ 6KDNHVSHDUH &RPSDQ\ ² DQG WKH $PHULFDQ 1DWLRQDO 7KHDWHU $17 DW WKH .HQQHG\ &HQWHU LQ :DVKLQJWRQ ² 6HOODUVUHOLQTXLVKHGWKHODWWHUDIWHUOHDGLQJLW LQWRFRQWURYHUV\RYHUKLVVSHFWDFXODUSURIOLJDF\ LQFDQGHVFHQWLQYHQ WLYHQHVV WHFKQRORJLFDO H[SHULPHQWV XVH RI YLVLEOH VWDJH PDFKLQHU\ KHLJKWHQHGPRYHPHQW FORZQLQJ DQGKLJKO\FULWLFDOSURGXFWLRQVRI FRQWHPSRUDU\$PHULFD 7KXVKHW\SLFDOO\VHWKLVDQWL9LHWQDP:DU $MD[ LQ WKH 3HQWDJRQ LWV WH[W E\ 6RSKRFOHV DGDSWHG E\ KLV GUDPDWXUJ5REHUW$XOHWWDWRKLVSROLWLFDOVWDQFH QRWOHDVWRIZKLFK ZDVKLVSROLF\RILQWHUUDFLDOFDVWLQJ ,WVSHUIRUPDQFHQHHGV²6HOODUV· LV SULPDULO\ DQ DHVWKHWLFV RI JHVWXUH ²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·V UHPLW WR LQFRUSRUDWH YDULRXV PLQRULW\ FRPPXQLWLHV LQ LWV SURFHHGLQJV DQG HYHQWV 7KLV LQFOXGHG GHVLJQDWLQJ SHUIRUPDQFH YHQXHV LQ EODFN QHLJKERXUKRRGV DPRQJ WKHP WKRVH RI WKH /RV $QJHOHV UDFH ULRWV &URVVLQJ VRFLDO ERUGHUV SUHMXGLFHV SKRELDVDQGWDERRVZDVWRUHPDLQDSHUPDQHQW IHDWXUH RI 6HOODUV· ZRUN HQWDLOLQJ DV ZHOO KLV HQJDJHPHQW ZLWK FRPPXQLW\ SHUIRUPDQFH ZKHUH KH PL[HV SURIHVVLRQDO DQG QRQ SURIHVVLRQDO DFWRUV ,Q UHFHQW \HDUV WKLV W\SH RI DFWLYLW\ KDV QRWDEO\ LQYROYHG KLV GLUHFWLRQ RI *HQHW·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
3(7(56(//$56
ZLWK ¶PRQXPHQWDO FRVWV· DQG ¶LGHDOLVWLF IROO\· 7KH $GYHUWLVHU 1RYHPEHU HQGHG LQ D GHEDFOH ¶LGHDOLVWLF IROO\· HVVHQWLDOO\ UHIHUUHGWRKLVDFWLYLVWFRPPXQLW\DUWVDWWLWXGH HVSHFLDOO\DV UHJDUGV WKHLQWHJUDWLRQDQGUHFRQFLOLDWLRQLVVXHVFRQFHUQLQJWKH$ERULJLQDO SHRSOHV RI $XVWUDOLD ZKLFK ZHUH DQG FRQWLQXH WR EH RI PRQX PHQWDOLPSRUWDQFHWRWKHFRXQWU\ 6HOODUVKROGVDWHDFKLQJSRVLWLRQ DV 3URIHVVRU RI :RUOG $UWV DQG &XOWXUHV DW WKH 8QLYHUVLW\ RI &DOLIRUQLD/RV$QJHOHV 7KH GLVVROXWLRQ RI KLHUDUFKLHV E\ ZKLFK GLVWLQFWLRQV EHWZHHQ ¶KLJK· DQG ¶ORZ· DQG ¶FODVVLFDO· DQG ¶SRSXODU· FXOWXUH DUH QR ORQJHU RSHUDWLYHLVDVFHQWUDOWR6HOODUV· FRQFHUQVDVKLVLQWHUHVWLQPXOWLPHGLD IRU WKH WKHDWUH 7HOHYLVLRQ PRQLWRUV FRPSXWHUV VFUHHQHG LPDJHV PRYLH FOLSV DPSOLILHG VRXQG PLFURSKRQHV DQG RWKHU HTXLSPHQW OD\HUKLVSURGXFWLRQVLQRUGHUWRHPEHGWKHZRUNLQJPRGHUQZRUOG ZLWKLQWKHP 7KHLUSXUSRVHLVDOVRWRUHPLQGDXGLHQFHVRIWKHQHJD WLYH LPSDFW RI WKH PHGLD RQ WKHLU OLYHV DQG WR XUJH WKHP WR VHHN DOWHUQDWLYH PRUHWUXWKIXOV\VWHPVRILQIRUPDWLRQVXFKDVWKHWKHDWUH LWVHOI 7KH WKHDWUH IRU 6HOODUV FDQ RQO\ EH RI WKH SUHVHQW DQG FRPPLWWHGZKROO\WRLW ¶2XUWDVNDVDUWLVWVLVWRUHVSRQG WRPDNHD UHFRUGRIZKDW·VJRLQJRQDQGWRSXWVRPHWKLQJRQVWDJHWKDWDFWXDOO\ UHIOHFWVVRFLHW\· 6HOODUV )XUWKHUPRUH¶ZKHQZHWDONDERXW PDNLQJ WKHDWUH ZH·UH UHDOO\ WDONLQJ DERXW PDNLQJ D VRFLHW\· LELG VRPXFKVRWKDW¶DSURGXFWLRQKDVWREH²OLNHDJRYHUQPHQW²D GLVFXVVLRQ DPRQJ HTXDOV DQG WKHUH KDV WR EH D NLQG RI HQHUJ\ WKDW FRPHVIURPDGHPRFUDWLFDOO\FKDUJHGHQYLURQPHQW· LELG 7KH WKHDWUH DV IRUXP IRU RSHQ GLVFXVVLRQ DQG GHEDWH GHILQHV DFFRUGLQJ WR 6HOODUV LWV IXQGDPHQWDO GHPRFUDWLF UROH +LV PDMRU SURGXFWLRQV DIWHU $MD[ DGRSW VWUDWHJLHV QRW RQO\ IRU D ¶GLVFXVVLRQ DPRQJ HTXDOV· EXW IRU WKH GHYHORSPHQW RI SHRSOH·V VHQVH RI WKHLU FLYLFUHVSRQVLELOLWLHV 7KH3HUVLDQV RQFHDJDLQLQFROODERUDWLRQ ZLWK$XOHWWDDQG6HJDO GHQRXQFHV$PHULFD·VUROHLQWKH*XOI:DU %\ WUDQVSRVLQJ $HVFK\OXV· WUDJHG\ LQWR D FRQWHPSRUDU\ FRQWH[W IDFLOLWDWHGE\$XOHWWD·VDGDSWDWLRQ DQGE\VSHDNLQJIURPWKH VWDQG SRLQWRIWKH¶DOLHQ· GHIHDWHG DV$HVFK\OXVKDGGRQH 6HOODUVZDV DEOH WRXVHDQDXVWHUHVSDFH VKDUSOLJKW DQGSK\VLFDODQGYRFDOUKHWRULF PXFK RI LW GHKXPDQLVHG E\ WHFKQRORJLFDO JDGJHWU\ WR GUDZ DWWHQ WLRQ WR WKH HIIHFWV RQ SHUFHSWLRQ RI ZDU SURSDJDQGD +H VWDJHG $UWDXG·V LQ IDPRXV UDGLR GLDWULEH )RU DQ (QG WR WKH -XGJHPHQW RI *RG DV WKH UDYLQJV RI DQ $PHULFDQ *HQHUDO VSLQGRFWRULQJ WKH FDXVH RI ZDU RQ ,UDT DQG QRWKLQJ FRXOG KDYH EHHQ PRUH WRSLFDO DW WKH WLPH $Q $PHULFDQ IODJ SRGLXP PLFURSKRQH DQG QRQVWRSPRYLHRIDWURFLWLHVVHWWKHVFHQHIRUDYLUWXRVRPRQRORJXH
3(7(56(//$56
RIYLROHQFHSUHVHQWHGDVD3HQWDJRQSUHVVFRQIHUHQFH ,WZDVFRXSOHG ZLWK$IUR$PHULFDQSRHW -XQH-RUGDQ·V.LVVLQJ*RG*RRGE\H ZKRVH YLVLRQ RI D EHWWHU KXPDQLW\ ZDV SUHVHQWHG YLD UHIOHFWLRQV XSRQ WKH YLROHQFHRIWKHDQWLDERUWLRQFDPSDLJQVLQWKH8QLWHG6WDWHV¶LQWKH QDPHRI*RG· 6HOODUV XVHG D FRPSDUDEOH PHWKRG RI UHZULWLQJ HVWDEOLVKHG WH[WV ZKLOH UHWDLQLQJ WKHLU HVVHQWLDO PHDQLQJ ZKHQ KH GLUHFWHG 7KH &KLOGUHQ RI +HUDNOHV E\ (XULSLGHV 2QFH DJDLQ D *UHHN SOD\ SURYLGHGKLPZLWKDPRGHOVLQFH DIWHU6HSWHPEHU ¶WKHUH·VEHHQD WDQJLEOHFKLOORQIUHHVSHHFKLQ$PHULFD 7KHOLPLWRIZKDWFDQ EH GLVFXVVHG RQ WKH RSHG SDJH RI WKH 1HZ
3(7(56(//$56
:LWKPRUHWKDQSURGXFWLRQVWRKLVQDPH 6HOODUVLVSUREDEO\ DW KLV EHVW DV D GLUHFWRU RI RSHUD ZKRVH FLYLF IXQFWLRQ KH DOVR VWUHVVHV +LVWKUHH0R]DUWRSHUDVLQVHYHUDOVLPLODUYHUVLRQV &RVuIDQ WXWWH 'RQ*LRYDQQL DQG7KH0DUULDJH RI)LJDUR DUHODQGPDUNVIRUWKHLUUDGLFDOUHFDVWLQJ 6HOODUVGRHV QRWXSGDWHRSHUDV EXWUHVKDSHVWKHLUWKHPDWLFVZKLOHUHWDLQLQJWKHLU PXVLFDO VWUXFWXUHV &RVu LV VHW LQ D &DOLIRUQLDQ GLQHU IXOO RI YLVLEO\ $PHULFDQWUDSSLQJV LQFOXGLQJSODVWLFNHWFKXSFRQWDLQHUV 'RUDEHOOD DQG )LRGLOLJL DGPLUH SKRWRJUDSKV RI KDQGVRPH PHQ LQ IDVKLRQ PDJD]LQHV DQG LQ IORZHUHG SDQWV EULJKW VKLUWV GDQJOLQJ SODVWLF HDULQJVDQGVXQJODVVHVDUHOLNHVXEXUEDQPXPVRQKROLGD\ 7KHPHQ ZKRWHVWWKHLUORYHDUHGUHVVHGLQDVLPLODUIDVKLRQ DQG EHHUFDQVLQ KDQG VLQJD¶OLWWOHWRDVWWRWKH*RGRI/RYH· 0R]DUW·VEHDXWLIXOWULR DVLILWZHUHDQDGYHUWLVHPHQWRQWHOHYLVLRQ 'HVSLQDPRSVWKHIORRU LQ VKRUW VNLUWV VWLOHWWR KHHOV DQG ILVKQHW WLJKWV ZKLOH 'RQ $OIRQVR HSLWRPLVHVDQDEXVLYHKDVEHHQZKRFRQWLQXHVWRWDXQWKHU )XOO RI JHVWXUHVIDPLOLDUIURPKRVWHGWHOHYLVLRQVKRZVDQGVRDSRSHUDV WKLV &RVu SODFHV0R]DUW·VVXEMHFWPDWWHUDWWKHKHDUWRIHYHU\GD\ H[SOLF LWO\ VH[XDO UHODWLRQVKLSV ZKLFK SD\ WULEXWH WR WKH OHVV REYLRXV SHUYDVLYHO\XQGHUO\LQJVH[XDOSDVVLRQVH[SORUHGZLWKVXFKKXPDQLW\ E\0R]DUW 'RQ*LRYDQQL LVVHWLQDVHHG\1HZ
'(%25$+:$51(5
DQG *HRUJH 7V\SLQ DQG OLJKWLQJ GHVLJQHU -DPHV ,QJDOOV 7KHRGRUD PXFKOLNH*LXOLR&HVDUH E\+DQGHO DQG LQYLWHGWR 3DULVE\&KpUHDX DQGHVSHFLDOO\KLV0R]DUWZRUNV LVKLJKO\FKRUH RJUDSKHG DOO PRYHPHQW EHLQJ GHOLEHUDWH ZLWKRXW H[SORLWLQJ ¶SRSXODU· PDQQHULVPV YDXGHYLOOH FKRUXVOLQH PXVLFDO WKHDWUH DV RFFXUV PRVW QRWDEO\ LQ &RVu +LV SURGXFWLRQ RI 7KH 5DNH·V 3URJUHVV E\6WUDYLQVN\ DWWKH1HWKHUODQGV2SHUDLVVHWLQD&DOLIRUQLDQ MDLO DQG LV D PDVWHUSLHFH RI FKRUHRJUDSKLF DQG PXVLFDO IRUP DQG FLYLF FRQFHUQ PXVLF SURYLGLQJ 6HOODUV KHUH DQG HOVHZKHUH ZLWK D FRQWUROOLQJVWUXFWXUHIRUKLVIUHHLPDJLQDWLRQ 'HVSLWHFRQWURYHUV\RYHUKLVUHFDVWRSHUD 6HOODUVLVDIDYRXULWHDW *O\QGHERXUQH ZKHUH KLV PRVW UHFHQW SURGXFWLRQ ZDV 0R]DUW·V ,GRPHQHR ZLWKUHIHUHQFHVWR,UDT
'(%25$+:$51(5 ² ,Q 'HERUDK :DUQHU GLUHFWHG )LRQD 6KDZ LQ D ODQGPDUN SURGXFWLRQ RI 6RSKRFOHV· (OHFWUD IRU WKH 5R\DO 6KDNHVSHDUH &RPSDQ\ 3UHYLRXVO\ NQRZQ IRU KHU VWDUNO\ XQFRPSURPLVLQJ
'(%25$+:$51(5
SURGXFWLRQV RI FDQRQLFDO WH[WV ZLWK KHU FRPSDQ\ .LFN :DUQHU·V SURGXFWLRQ RI (OHFWUD EHJDQ D FROODERUDWLYH UHODWLRQVKLS ZLWK 6KDZ ZKLFK KDV EHHQ FHQWUDO WR WKHLU VWDWXV DV PDMRU ILJXUHV LQ WKH FRQWHPSRUDU\ %ULWLVK WKHDWUH VFHQH DQG WKHLU ZRUN KDV SOD\HG DQ LPSRUWDQW UROH LQ WKHDWUH SUDFWLFH VLQFH WKH V :DUQHU KDV DOVR GHYHORSHGZRUNVHSDUDWHO\LQRSHUD QRWDEO\ZLWK 7XUQRI7KH6FUHZ DQG)LGHOLR LQVLWHVSHFLILFSHUIRUPDQFHVXFKDVWKH6W 3DQFUDV 3URMHFW DQG 7KH 7RZHU 3URMHFW DQG LQ IHDWXUH ILOPZLWK7KH/DVW6HSWHPEHU :DUQHU·V SURGXFWLRQV DUH FDXJKW ZLWKLQ WKUHH FRPSHWLQJ PRGHV RIWKHDWULFDOUHSUHVHQWDWLRQ 7KHUHLV:DUQHU·VOR\DOW\WRWKHWH[W VKH VHHVKHUVHOIDVZRUNLQJLQWKHVHUYLFHRIWKHXQLYHUVDOKXPDQWUXWKV RI FDQRQLFDO SOD\WH[WV DQG VLWXDWHV KHUVHOI ZLWKLQ WKH WUDGLWLRQV RI ¶FODVVLFDO· %ULWLVK WKHDWUH :DUQHU HPSKDVLVHV WKH QHHG IRU ¶WUDQV SDUHQW· WKHDWUHSURGXFWLRQVZKLFKUHPRYHLGHRORJLFDODQGKLVWRULFDO ILOWHUVIURPWKHDXGLHQFH·VH[SHULHQFHRIWKHVHSOD\V DQGWKLV WUDQV SDUHQF\RIWHQWUDQVODWHVLQWRDKHLJKWHQHGIRUPRIQDWXUDOLVPLQKHU ZRUN 7KHQ WKHUH LV :DUQHU DQG 6KDZ·V HPSKDVLV RQ H[SHULPHQWD WLRQ DQG ULVN LQ SHUIRUPDQFH JDUQHUHG IURP WKHLU LQWHUHVW LQ WKH (XURSHDQPRGHUQLVWDYDQWJDUGH :DUQHUKDVEHHQSDUWLFXODUO\LQIOX HQFHGE\WKHZRUNRI3HWHU %URRN ZKLFKVKRZVLQKHUVHDUFKIRU WUXWK LQ SHUIRUPDQFH DQG LQ KHU PLQLPDO XVH RI VHW SURSV DQG FRVWXPHV )LQDOO\ WKHUHLVWKHFHQWUDOUROH6KDZ·VYLUWXRVLW\SOD\VLQ :DUQHU·V SURGXFWLRQV ZKLFK VXSSRUWV DQG VLPXOWDQHRXVO\ GLVUXSWV WKH DXWKRULW\ RI WKH SOD\WH[W 6KDZ·V SRVLWLRQ DV D¶JUHDW· FODVVLFDO DFWUHVVDIILUPVWKHKLHUDUFK\RIFDQRQLFDOWH[WV EXWKHUVWDUVWDWXVDOVR LQWHUUXSWV WKLV KLHUDUFK\ E\ GUDZLQJ DWWHQWLRQ WR KHU RZQ ZRUN DV DQ DFWRU :KLOH DQ LQWHUHVW LQ WH[W DFWLQJ DQG H[SHULPHQWDWLRQ DUH QRW QHFHVVDULO\ FRQWUDGLFWRU\ 6KDZ·V YLUWXRVR H[SHULPHQWDOLVP LV IUHTXHQWO\ DW RGGV ZLWK WKH WUDQVSDUHQF\ UHTXLUHG E\ WH[WFHQWUHG SHUIRUPDQFH LQ %ULWDLQ 7KH WHQVLRQ EHWZHHQ WKHVH HOHPHQWV KDV UHVXOWHG LQ KHU GHYHORSLQJ VRPH RI WKH PRVW LQWHUHVWLQJ SHUIRU PDQFHVRIIHPLQLQLW\LQFRQWHPSRUDU\%ULWLVKWKHDWUH :DUQHU·V DSSURDFK WR JHQGHU LQ SHUIRUPDQFH SODFHV D SDUWLFXODU VWUDLQRQWKHFRQYHUJHQFHRIWUDGLWLRQDQGH[SHULPHQWLQKHUZRUN :DUQHUDQG6KDZKDYHSXEOLFO\GLVDYRZHGWKHLPSRUWDQFHRIJHQGHU WR :DUQHU·V ZRUN DUJXLQJ WKDW WKH\ SUHIHU WR FRQFHQWUDWH RQ WKH XQLYHUVDO KXPDQ H[SHULHQFH ,URQLFDOO\ :DUQHU·V IRFXV RQ WKH ¶XQLYHUVDO· KDV SURGXFHG VRPH RI WKH PRVW LPSRUWDQW UHQGLWLRQV RI IHPLQLQLW\ RQ WKH %ULWLVK FODVVLFDO VWDJH LQ UHFHQW \HDUV SDUWLFXODUO\ LQ KHU (OHFWUD *RRG 3HUVRQ RI 6LFKXDQ +HGGD *DEOHU )RRWIDOOV 7KH:DVWHODQG DQG0HGHD 7KHWHQVLRQ
'(%25$+:$51(5
EHWZHHQ :DUQHU·V IRFXV DQG KHU LQDGYHUWHQW H[SORUDWLRQ RI JHQGHU SROLWLFV VKRZV KRZ 6KDZ·V SHUIRUPDQFHV KDYH SURGXFHG FRPSOH[ DQG WKHDWULFDO SRUWUDLWV RI IHPLQLQLW\ ZKLFK DOVR WHQG WR RSSRVH FRQILQLQJ VWDJH LPDJHV RI PDVFXOLQLW\ IHPLQLQLW\ DQG ,ULVKQHVV ,Q (OHFWUD 6KDZ·V DQGURJ\QRXV FKDUDFWHULVDWLRQ LQ WKH OHDG UROH FRQWUDVWHG ZLWK WKH VWHUHRW\SHG SRUWUDLWV RI IHPLQLQLW\ WKDW DUH &O\WDHPQHVWUDDQG&KU\VRWKHPLV ,Q7KH*RRG3HUVRQRI6LFKXDQ KHU FRPSOH[DQGLQWHOOLJHQWUHSUHVHQWDWLRQRIIHPLQLQLW\LQWKHFKDUDFWHU RI6KHQ7HKFRXQWHUHGKHURQHGLPHQVLRQDOSRUWUDLWRIPDVFXOLQLW\ DV 6KXL 7D ,Q +HGGD *DEOHU DQG 0HGHD 6KDZ·V UHEHOOLRXV IHPDOH FKDUDFWHUV ZHUH SODFHG LQ RSSRVLWLRQ WR D UHSUHVVLYH DQG KRPRJH QRXV ,ULVK PDVFXOLQLW\ 7KH ,ULVK FRQWH[W RI +HGGD *DEOHU ZDV UHIHUHQFHG E\ WKH¶ELJ KRXVH· DQG WKH SDURFKLDOLVP RI VPDOOWRZQ ,UHODQG LQ ZKLFK WKLV PDVFXOLQLW\ KHOG VZD\ :DUQHU·V WHQGHQF\ WR RSSRVHFRPSOH[IHPLQLQHLGHQWLW\ZLWKDVWHUHRW\SHGPDVFXOLQHRU QDWLRQDOLGHQWLW\RIWHQSODFHVDV\PSDWKHWLFKHURLQHLQFRQIOLFWZLWK WKH UHSUHVVLYH IRUFHV RI D KRPRJHQRXV DQG UHSUHVVLYH SDWULDUFKDO QDWLRQDOLVP :KLOH 6KDZ KDV DOZD\V SOD\HG WKHVH KHURLQHV ZLWK LQWHOOLJHQFH FRQVWUXFWLQJDVXEYHUVLYHYLVLRQRIIHPLQLQHLGHQWLW\E\ GHIDXOW WKHIRFXVRIWKHVHSURGXFWLRQVKDVEHHQRQDQH[SORUDWLRQRI XQLYHUVDO UDWKHUWKDQJHQGHUHG LGHQWLW\ 7KH XQLYHUVDO LV RIWHQ FRQIODWHG ZLWK WKH LQGLYLGXDO LQ :DUQHU·V ZRUN LQ WKDW VKH IRFXVHV RQ ILJXUHV ZKR VRPHKRZ WUDQVFHQG WKHLU JHQGHUDQGQDWLRQDOLW\LQWKHLUVHDUFKIRUJUHDWHU¶KXPDQ· WUXWKV
'(%25$+:$51(5
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·VSHUIRUPDQFHZDVYLVFHUDO K\SHUDF WLYHDQGQRQQDWXUDOLVWLF DQGKHUERG\ZDVDEVWUDFWHGDQGVW\OLVHGLQ FRPSDULVRQ WR WKH QDWXUDOLVW SOD\ RI WKH RWKHU DFWRUV 7KLV GLVWLQF WLRQ UHOLHG LQ SDUW RQ WKH GLIIHUHQFH EHWZHHQ WKH¶VWDU· SOD\HU DQG WKHUHVWRIWKHFDVW EXWLWDOVRKDGDQHIIHFWRQKRZ6KDZ·VNLQJZDV SRVLWLRQHGDQGJHQGHUHG 6KDZ·VSHUIRUPDQFHFUHDWHGWKHVHQVHWKDW 5LFKDUG·V LGHQWLW\ ZDV IOXLG DQG FRQWLQXDOO\ EHLQJ PDWHULDOLVHG WKURXJK SHUIRUPDQFH DQG GLVSOD\ ZKLOH WKH RWKHU SHUIRUPDQFHV SURGXFHGDPRUHVWDWLFDQGVWDEOHFRQFHSWLRQRIFKDUDFWHULVDWLRQDQG SV\FKRORJ\ 0RUHRYHU WKH FRQWUDVWV EHWZHHQ 6KDZ DQG WKH RWKHU DFWRUV ZHUH H[DFHUEDWHG E\ WKH IDFW WKDW 6KDZ ZDV WKH RQO\ FURVV GUHVVHG ILJXUH +HU 5LFKDUG XQVHWWOHG WKH FRQVLVWHQF\ RI :DUQHU·V SV\FKRORJLFDODQGIDLWKIXODSSURDFKWRWKHWH[W 7KH WHQVLRQV LQ :DUQHU·V ZRUN EHWZHHQ QDWXUDOLVP DQG H[SHUL PHQWDWLRQDQGWKHDXWKRULW\RIWKHWH[WDQGWKDWRIWKHDFWRUFRXOG EH IRXQG LQ WKH FRPSOH[ UHVSRQVH GHPDQGHG E\ 6KDZ·V SHUIRU PDQFH 6KDZ FODLPHG WKDW VKH FRXOG DFFHVV XQLYHUVDO KXPDQ WUXWKV LQ 5LFKDUG ,, LQ D ZD\ QRW SRVVLEOH LQ KHU SUHYLRXV IHPDOH UROHV +RZHYHU ZKLOH 6KDZ SOD\HG 5LFKDUG ZLWK DPELJXLW\ DQG LQWHOOL JHQFH WKHIDFWWKDWVKHSOD\HGDPDOHUROHWUDGLWLRQDOO\UHSUHVHQWHGDV IHPLQLQH DQG HIIHPLQDWH SUREOHPDWLVHG KHU XVXDO FULWLFDO HQJDJH PHQW ZLWK JHQGHU $V ,UYLQJ :DUGOH SRLQWHG RXW ¶PXFK RI KHU SHUIRUPDQFH FRQIRUPV WR WKH ZRPDQLVK VWHUHRW\SH LUUDWLRQDOO\ REVWLQDWH XQDEOH WR PDNH XS KHU PLQG IRUHYHU UHWUHDWLQJ IURP SXEOLF LVVXHV LQWR SHUVRQDO UHODWLRQVKLSV· ,QGHSHQGHQW RQ 6XQGD\ -XQH 6KDZ·VXVXDOO\FULWLFDOSRUWUDLWVRIIHPLQLQH ZRPHQ QRZ FRQWUDVWHGZLWKKHUPXFKPRUHFRQYHQWLRQDOSRUWUDLWRIIHPLQLQLW\ ZKHQ SOD\LQJ D PDQ :DUQHU·V GHIHQFH RI KHU FDVWLQJ FKRLFH ² DUJXLQJ WKDW 5LFKDUG ZDV D IHPLQLQH FKDUDFWHU DQG WKDW 6KDZ·V IHPDOHQHVV VKRXOG EH LJQRUHG LQ IDYRXU RI D IRFXV RQ WKH XQLYHUVDO WUXWKVRIWKHUROH²KDGWKHNQRFNRQHIIHFWRIGHILQLQJIHPLQLQLW\ E\WKHTXDOLWLHVZKLFK5LFKDUGHPERGLHV LQHIIHFWXDOQHVV LQGHFLVLRQ DQG LUUDWLRQDOLW\ &DVWLQJ 6KDZ DV 5LFKDUG ERWK HVVHQWLDOLVHG 5LFKDUG·V TXDOLWLHV DV IHPLQLQH DQG 6KDZ DV IHPDOH DQG HQGRUVHG
'(%25$+:$51(5
UDWKHUWKDQFULWLTXHGWKHVWHUHRW\SHVDVVRFLDWHGZLWKZRPHQ :KLOH 6KDZFODLPHGWKDWSOD\LQJDPDQJDYHKHUDFFHVVWRXQLYHUVDOKXPDQ WUXWKV VKHSHUIRUPHG LQIDFW WKHPRVWVWHUHRW\SLFDOO\IHPLQLQH UROH RIKHUFDUHHU :DUQHU·V SURGXFWLRQ DVNHG WKH DXGLHQFH WR LGHQWLI\ ZLWK WKLV IHPLQLQH NLQJ UDWKHU WKDQ ZLWK WKH PDVFXOLQH UHDOLVP RI %ROLQJEURNH·V ZRUOG $OWKRXJK 6KDZ·V FURVVGUHVVHG SHUIRUPDQFH FRQVWUXFWHGUHVWULFWHGLPDJHVRIIHPLQLQLW\ WKHORQJLQJWKHSURGXF WLRQ H[SUHVVHG IRU 5LFKDUG·V PRPHQW ZDV GHHSO\ VXEYHUVLYH RI WKH FRPPRQSODFHFRQVWUXFWLRQRIKLVWRU\DVPDVFXOLQH :DUQHUGLVSOD\HG ¶DQXQH[SHFWHGQRVWDOJLDIRUDGLIIHUHQWORVWZD\· DQGWKLVQRVWDOJLD ZDV WKH PRVW UDGLFDO FRPSRQHQW RI KHU SURGXFWLRQ :DUQHU·V UHYHU HQFHIRUWKHSDVWZDVVKRZQWKURXJKWKHFHOHEUDWRU\XVHRIULWXDO² WKH FKRUDO ODPHQWV VXQJ E\ IHPDOH VLQJHUV DQG WKH HYLGHQW ORVV IHOW HYHQ E\ %ROLQJEURNH DW WKH GHVWUXFWLRQ RI 5LFKDUG·V ZRUOG 6KH FRQVWUXFWHG D PHGLHYDO SDVW ZKLFK ZDV UXOHG E\ D ILJXUH ZKR FRPELQHGPDVFXOLQH IHPLQLQHDQGFKLOGOLNHWUDLWV :DUQHUPDGHWKH PRUH PRGHUQ ZRUOG RI %ROLQJEURNH PRUH IDPLOLDU EXW DW WKH VDPH WLPH SODFHG WKH VWDU DFWRU 6KDZ LQ RSSRVLWLRQ WR WKLV ZRUOG DQG GHPDQGHGV\PSDWK\IRU5LFKDUG·VZRUOGDQG5LFKDUG·VGRZQIDOO ,Q GRLQJ VR :DUQHU FKDOOHQJHG DQ (QJOLVK VHQVH RI KLVWRU\ DQG PRQDUFK\ HYRNLQJ D IHPLQLVHG DPELJXRXV SDVW DV LGHDO RYHU WKH PDVFXOLQH DQG SRZHUIXO ZRUOG RI %ROLQJEURNH PRUH W\SLFDO RI WKH UHSUHVHQWDWLRQVRI(QJOLVKKLVWRU\RQWKHVWDJH DQGLQILOPVVXFKDV +HQU\9 E\/DXUHQFH2OLYLHURU.HQQHWK%UDQDJK %\SODFLQJWKH ¶LQDSSURSULDWH· ERG\ RI 6KDZ LQ WKH UROH RI D NLQJ :DUQHU FKDO OHQJHG WKH LQWHUWZLQHG UHODWLRQVKLS RI (QJOLVKQHVV KLVWRU\ DQG PDVFXOLQLW\ RIIHULQJ D GLIIHUHQW VHQVH RI KLVWRULFDO SRVVLELOLW\ LQ LWV SODFH 7KHIHPLQLQHNLQJEHFDPHDFXOWXUDOLGHDOIRUWKHSUHVHQW $V 6XVDQ%HQQHWWDUJXHV ¶RIWHQZKDWLVSHUFHLYHGDV¶¶ORVW·· LVUHDVVHUWHG E\LWVFXOWXUDOUHSUHVHQWDWLRQ· %\H[SUHVVLQJQRVWDOJLDIRU5LFKDUG·V KLVWRULFDOPRPHQW :DUQHUDVNHGVSHFWDWRUVWRVKDUHLQDORQJLQJIRU DQ (QJOLVK SUHVHQW ZKLFK ZDV DPELJXRXV IHPLQLQH DQG WKHDWULFDO 7KHFULWLFDOUHVLVWDQFHWR:DUQHU·VSURGXFWLRQFDQEHVHHQDVDUHVLV WDQFH WR WKLV YLVLRQ RI (QJOLVKQHVV DQG KLVWRU\ DQG 6KDZ·V FURVVGUHVVLQJ ZDV VHHQ E\ FULWLFV DV D WKUHDW WR WKH ¶UHDOLW\· RI PRQDUFK\ DQG WR 6KDNHVSHDUH KLPVHOI 7KH (QJOLVK FXOWXUDO LQYHVW PHQW LQ KLVWRU\ SOD\V ZDV KLJKOLJKWHG E\ :DUQHU·V SURGXFWLRQ DQG KHU XVH RI FURVVGUHVVLQJ UHYHDOHG KRZ WKH UHSUHVHQWDWLRQ RI PRQDUFK\ DQG KLVWRU\ LV D YRODWLOH DQG SROLWLFDO DIIDLU :DUQHU DQG 6KDZGHPRQVWUDWHGWKDWWKHLQGLYLGXDO DQGWKHXQLYHUVDO FDQDOVREH IHPDOH LQSHUIRUPDQFH
&$/,;72%,(,72
1RWHV
$UPLVWHDG &ODLUH ¶.LQJGRP XQGHU 6LHJH· *XDUGLDQ 0D\ ² +ROODQG 3HWHU (QJOLVK 6KDNHVSHDUHV 6KDNHVSHDUH RQ WKH (QJOLVK 6WDJHLQWKH ·V &DPEULGJH 1HZ
)XUWKHUUHDGLQJ &KLOOLQJWRQ 5XWWHU &DURO ¶)LRQD 6KDZ·V 5LFKDUG ,, 7KH *LUO $V 3OD\HU.LQJ$V&RPLF· 6KDNHVSHDUH4XDUWHUO\ ² +RZDUG -HDQ( DQG5DFNLQ 3K\OOLV (QJHQGHULQJ$1DWLRQ $)HPL QLVW $FFRXQW 2I 6KDNHVSHDUH·V (QJOLVK +LVWRULHV /RQGRQ DQG 1HZ
&$/,;72%,(,72 ² :KHQ &DOL[WR %LHLWR PDGH KLV (GLQEXUJK )HVWLYDO GHEXW LQ ZLWKDVWDJLQJRI/DYHUEHQDGHODSDORPD 7KH)HVWLYDORIWKH'RYH DQ ]DU]XHOD RUSRSXODURSHUHWWD E\7RPiV%UHWRQ IHZKDGKHDUG RI WKLV \RXQJ &DWDODQ GLUHFWRU +H KDG KRZHYHU DOUHDG\ PDGH D QDPHIRUKLPVHOILQ%DUFHORQDDVDQLQQRYDWLYHDQGYHUVDWLOHGLUHFWRU HTXDOO\ DW KRPH ZRUNLQJ ZLWKLQ PXVLFDO WKHDWUH 6RQGKHLP %DUELHUL 6FK|QEHUJ ZLWKPRUHFRQWHPSRUDU\ZULWHUV 6KDZ 3ODWK /RUFD %HUQKDUG DQGLQWKHKDQGOLQJRIFODVVLFDOWH[WV 6KDNHVSHDUH 0ROLqUH %LHLWR FKRVH WR VHW /D YHUEHQD GH OD SDORPD LQ DQ XUEDQ ZDVWHODQGRXWVLGHDWUDPVKHG WKHUHE\XQGHUPLQLQJWKHFHOHEUDWRU\ WRQH LQ ZKLFK WKH SLHFH LV KDELWXDOO\ UHDG DQG ORFDWLQJ WKH GUDPD ZLWKLQ WKH SULVP RI DQ RYHUW VRFLDO FULWLFLVP RI ERXUJHRLV FRPSOD FHQF\ DQG FRUUXSWLRQ 7KH SURGXFWLRQ VHUYHG WR DQQRXQFH WKH GRPLQDQW IDFHWV RI %LHLWR·V GLUHFWRULDO DHVWKHWLF HFRQRPLFDO VWDJH FUDIW FORVH DWWHQWLRQ WR FKDUDFWHU FRQVWUXFWLRQ ZLWKLQ D VSLULWHG SHUIRUPDQFH VW\OH ZKLFK MXJJOHV KLJK WKHDWULFDOLW\ ZLWK D FRPPLW PHQWWRUHDOLVWLFGHWDLO DQGDEDUHVWDJHZKHUHGpFRULVUHGXFHGWRLWV
&$/,;72%,(,72
HVVHQWLDOV DOORZLQJ WKH FRQVWUXFWLRQ RI D PXOWLGLPHQVLRQDO ZRUOG ZKHUHWKHUHDODQGWKHSRHWLFFDQH[LVWFKHHNE\MRZO 7KHVHHOHPHQWVZHUHFOHDUO\LQHYLGHQFHLQ%LHLWR·V (QJOLVK ODQJXDJHSURGXFWLRQRI3HGUR&DOGHUyQGHOD%DUFD·V /LIHLVD'UHDP IRU7KH5R\DO/\FHXP&RPSDQ\ :LGHO\SUDLVHGIRULWVZU\KXPRXU G\QDPLFXUJHQF\DQGGHOLFDWHLQWHUURJDWLRQRIWKHHYHUVKLIWLQJUHOD WLRQVKLS EHWZHHQ LOOXVLRQ DQG UHDOLW\ %LHLWR·V VWDJLQJ HYROYHG RQ D JUH\ VDQG\VHWGRPLQDWHGE\DJLJDQWLF VXVSHQGHGPLUURU 7KHPLUURU IXQFWLRQHGDVDPHWDSKRULFDOWRRO SURYLGLQJERWKDGD]]OLQJLPDJHRI DQHOXVLYHZRUOGWKDWFDQQHYHUEHHQWLUHO\FRQWUROOHGDQGDFRPPHQ WDU\RQDSOD\WKDWFRQWLQXRXVO\TXHVWLRQVZKDWZHPHDQE\¶UHDOLW\· DQG ¶ILFWLRQ· 7KH IXULRXV SDFH RI WKLV SDUHGGRZQ YHUVLRQ RI &DOGHUyQ·V PHWDSK\VLFDO UHIOHFWLRQ RQ WKH LOOXVRU\ QDWXUH RI KXPDQ H[LVWHQFH SUHVHQWHGLQ&DVWLOLDQLQDVSDUWRIWKHWKDQQLYHU VDU\FHOHEUDWLRQVRI&DOGHUyQGHOD%DUFD·VELUWK PD\KDYHVXFFHHGHG LQJHQHUDWLQJSRVLWLYHFULWLFDOUHVSRQVHV EXWSXULVWDXGLHQFHV LQ6SDLQ UHVSRQGHGZLWKVKRFNWR%LHLWR·VSDF\VWDJLQJ %LHLWR·VHFOHFWLFERG\RIZRUNKDVQHYHUEHHQWDPH +LVSURGXF WLRQVDUHRIWHQPDUNHGE\DVH[XDOFKDUJHWKDWKDVQRWIRXQGIDYRXU ZLWK FRQVHUYDWLYH DXGLHQFHV +H KDV EROGO\ UHHQYLVDJHG FDQRQLFDO 6SDQLVKWH[WVIRUWKHVWDJH²DVZLWKKLVURXJK DJJUHVVLYH(GLQEXUJK )HVWLYDOSURGXFWLRQRI9DOOH,QFOiQ·V%DUEDULF&RPHGLHV DQGKLV DEUDVLYH UHDGLQJ RI /D FDVD GH %HUQDUGD $OED 7KH +RXVH RI %HUQDUGD $OED ,W LV SHUKDSV LQ RSHUD WKDW %LHLWR·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·V ZRUN VKDUHV SURIRXQG SDUDOOHOV ZLWK WKDW RI D QXPEHU RI RWKHU UDGLFDO GLUHFWRUV VXFK DV 3ODQFKRQ DQG &KpUHDX ZKR KDYH UHYLHZHG VRPH RI WKH VHPLQDO ZRUNV RI WKH :HVWHUQ FDQRQWKURXJKWKHSULVPRIDGHFD\LQJVRFLHW\ZKHUHPRUDOLQGLJ QDWLRQLVWHPSHUHGE\DVSLULWRIGLVTXLHWLQJHQTXLU\
&$/,;72%,(,72
$V DUWLVWLF GLUHFWRU RI %DUFHORQD·V 5RPHD WKHDWUH DORQJVLGH WKH 3ULQFLSDODQGWKH/LFHX SDUWRIDWULSW\FKRIWKHDWUHVZKLFKPDUNV RXWWKHFLW\·VWKHDWULFDOKHULWDJHRYHUWKHWZHQWLHWKFHQWXU\ %LHLWR KDVZRUNHGWRUHHVWDEOLVKDSXUSRVHIRUWKHWKHDWUH²WKHWUDGLWLRQDO KRPH RI &DWDODQ WKHDWUH ² LQ D FLW\ WKDW QRZ ERDVWV D &DWDODQ 1DWLRQDO 7KHDWUH ZKLFK KDV SDUWO\ XVXUSHG WKH 5RPHD·V PDQGDWH +HUHKHKDVLQYLWHGLQQRYDWLYH\RXQJFRPSDQLHVVXFKDV.UjPSDFN ZKR KDYH VHFXUHG D \RXQJ DXGLHQFH IRU WKH YHQXH DQG EXLOW XS D FRPSDQ\ ZKR KDYH MXJJOHG ERWK &DWDODQ DQG &DVWLOLDQODQJXDJH SURGXFWLRQV DV LQ %LHLWR·V VWDJLQJV RI 0DFEHWK DQG 7KH 7KUHHSHQQ\2SHUD RIIHULQJELOLQJXDOWKHDWUHLQDFLW\ZKHUHWKHDWUH LV RIWHQ SRODULVHG DURXQG WKH &DWDODQ&DVWLOLDQ D[LV +LV RZQ *DOLFLDQURRWV KLVXSEULQJLQJLQ&DVWLOH KLVUHORFDWLRQWR&DWDORQLD DW WKH DJH RI ILIWHHQ KLV ELOLQJXDOLVP LQ &DVWLOLDQ6SDQLVK DQG &DWDODQ KLVIOXHQF\LQ(QJOLVK )UHQFKDQG,WDOLDQKDYHHQVXUHGWKDW LQ D (XURSHDQ FOLPDWH RI FROODSVLQJ ERUGHUV KH UHPDLQV D SRZHUIXO V\PERORIDPXOWLOLQJXDO6SDLQRIFRH[LVWLQJLGHQWLWLHV %LHLWR·V SURGXFWLRQV FRQVLVWHQWO\ DVN UDGLFDO TXHVWLRQV DERXW KRZ DQGZKDW WH[WVPHDQWRGLIIHUHQWJHQHUDWLRQV :LWKWKHFODVVLFVHVSH FLDOO\ KH KDV GHPRQVWUDWHG WKH DELOLW\ WR UHLQYHQW WH[WV VWULSSLQJ WKHP RI WKH OHJDF\ RI SDVW SURGXFWLRQV DQG UHLPDJLQLQJ WKHP IRU FRQWHPSRUDU\ DXGLHQFHV )RU WKH *UHF %DUFHORQD·V VXPPHU WKHDWUH IHVWLYDO KH SURYLGHG SDUHGGRZQ UHUHDGLQJV RI 7ZR *HQWOHPHQ RI 9HURQD $0LGVXPPHU1LJKW·V'UHDP .LQJ-RKQ DQG 7KH 7HPSHVW IRU WKH 7HDWUH 1DFLRQDO GH &DWDOXQ\D D GLVTXLHWLQJ0HDVXUHIRU0HDVXUH +LVDWWUDFWLRQLVRIWHQWRWKH %DUG·V PDUJLQDOLVHG PRUH DZNZDUG ZRUNV $V ZLWK 6HOODUV KLV DSSURDFK KDV QHYHU EHHQ RQH RI LJQRULQJ WKDW ZKLFK LV QRW HDVLO\ XQGHUVWRRG EXWUDWKHURIIRUHJURXQGLQJJDSVLQWKHZULWLQJDQG RI UHFRJQLVLQJ WKH OD\HUV RI LQWHUSUHWDWLRQ SUHVHQW ZKHQ DQ\ FXOWXUDO DUWHIDFWIURPDQHDUOLHUHUDLVUHVWDJHGLQFRQWHPSRUDU\WLPHV 0RUH UHFHQWO\ KH KDV SURYLGHG *HUPDQ &DWDODQ DQG &DVWLOLDQ ODQJXDJH VWDJLQJV RI 0DFEHWK ² WKXV IXUWKHU H[SORULQJ WKH VXEWOHWLHV DQG FRPSOH[LWLHV RI ZRUNLQJ DFURVV GLIIHUHQW ODQJXDJHV ZLWK SOD\V UHSRVLWLRQHG ZLWKLQ DOWHUQDWLYH OLQJXLVWLF FXOWXUDO DQG VRFLDO FRQWH[WV ,Q ² 0DFEHWK ZDV SHUIRUPHG E\ WKH 5RPHD FRPSDQ\ LQ ERWK &DVWLOLDQ DQG &DWDODQ HDFK ODQJXDJH PDNLQJ GLIIHUHQW GHPDQGV RQ WKH SHUIRUPHUV 7KLV SURFHVV KDV LQYROYHG D SURJUHVVLYHO\ PRUH DFWLYH FROODERUDWLRQ ZLWK OLYLQJ WUDQVODWRUV 0LTXHO 'HVFORW -RVHS *DOLQGR ZKR KDYH ZRUNHG ZLWK %LHLWR RQ WKHWUDQVODWLRQVRI7KH7HPSHVW DQG0DFEHWK ,QFUHDVLQJO\WKLVSURFHVV RIUHZRUNLQJKDVLQYROYHGEROGGUDPDWXUJLFDOUHVKDSLQJ LQ 0DFEHWK
&$/,;72%,(,72
%LHLWR VKLIWHG WKH RUGHU RI FHUWDLQ VFHQHV DQG UHFRQILJXUHG FKDUDF WHUV &HUWDLQUROHVZHUHFRQGHQVHGDQGRWKHUVHQKDQFHG 7KHUHZDV QRSRUWHU QRZLWFKHV QR6LZDUG QRPHVVHQJHUVRUPXUGHUHUV WKHLU OLQHV ZHUH UHGLVWULEXWHG ZLWK /HQR[ WDNLQJ WKH SRUWHU·V OLQHV DQG EHFRPLQJ D ZU\ GHWDFKHG REVHUYHU RQ WKH DFWLRQ 5RVV WRRN RYHU WKHUROHRIWKHPXUGHUHUVLQ$FWDQGWKHPHVVHQJHUDQGPXUGHUHUV LQ$FW WKXVEHFRPLQJ0DFEHWK·VPDILRVRKHQFKPDQ 6H\WRQWRRN RYHUWKHOLQHVRIWKHZLWFKHVDQGEHFDPHDFDFNOLQJVHHUDWWKHKHDUW RIWKHIDPLO\ VHHNLQJWRXVXUS/DG\0DFEHWK·VUROH :KLOH%LHLWR·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¶D KHGRQLVWLF GUXJ DQG GULQNIXHOOHG FXOWXUH ZLWK QR ERXQGV· ZKHUH HDFK SURWDJRQLVW SURZOV ERXQFHV DQG FKDUJHV DFURVV WKH VWDJH LQ WKH UXWKOHVVSXUVXLWRISRZHUDQGWKHSUHVWLJHWKDWVXFKSRZHUEULQJV :KLOHWKLVZDVDZRUOGRIPRGHUQJDQJVWHUVDQGPROOVHQYLVDJHG WKURXJKWKHYLROHQWDQGWKUHDWHQLQJSULVPRISRSXODU79LFRQRJ UDSK\ LW ZDV DOVR WKH VWRU\ RI D FRXSOH VFDUUHG E\ FKLOGOHVVQHVV %LHLWR·V UHDGLQJ FRQVSLFXRXVO\ JUDYLWDWHG DURXQG GRPHVWLF SROLWLFV LW ZDV WKURXJK WKH LFRQRJUDSK\ RI WKH WR\V DQG WKH SDGGOLQJ SRRO RIWKH0DFGXIIFKLOGUHQWKDW%LHLWRORFDWHGWKHGHVWUXFWLYHDQJXLVK WKDW IXHOOHG WKH 0DFEHWKV· DYDULFH 7KH GRPHVWLF LFRQRJUDSK\ ZDV DOVR XVHG WR RUFKHVWUDWH VRPH RI WKH SURGXFWLRQ·V PRVW H[TXLVLWHO\ FKRUHRJUDSKHG VHTXHQFHV ² LQFOXGLQJ WKH VLOHQW PXUGHU RI /DG\ 0DFGXIIDQGKHUFKLOGUHQZLWKDMXJRIKRWFRIIHH DQLURQIOH[DQG D FRNH ERWWOH 7KLV ZDV QR LGHDOLVHG ZRUOG ZKHUH FKLOGUHQ DUH SURWHFWHG %LHLWR·V VWDJLQJ FRQVWUXFWHG D KLHUDUFKLFDO HGLILFH ZKHUH )OHDQFH ZDV WKH YLFWLP RI KLV IDWKHU %DQTXR·V SHQWXS DJJUHVVLRQ ,QGRFWULQDWLRQLQWRWKHDEVROXWHDQGLQIOH[LEOHFRGHVRIPDVFXOLQLW\ WRZKLFK'XQFDQ 0DFEHWKDQGWKHLU¶WURRSV· DGKHUH ZDVVKRZQWR EHJLQ LQ FKLOGKRRG ZKHQ WKH ER\V DUH JLYHQ FOHDU JXLGHOLQHV RQ KRZ WR EHKDYH VR DV WR VHFXUH WKHLU SRVLWLRQ ZLWKLQ D SHFNLQJ RUGHU
&$/,;72%,(,72
,W LV WKLV SURIRXQG HQJDJHPHQW ZLWK WKH FRQGLWLRQV RI RXU H[LV WHQFH WKDW PDNHV %LHLWR LQ WKH ZRUGV RI 0LFKDHO %LOOLQJWRQ ¶QRW VRPH EUXWDO VHQVDWLRQDOLVW GDQFLQJ RQ WKH FRUSVHV RI ROG PDVWHU SLHFHV· EXWUDWKHUDSURIRXQGO\PRUDODUWLVWHQJDJLQJZLWKWKHNH\ LVVXHVDQGGHEDWHVRIRXUDPRUDODJH 1RWHV
%LHLWR TXRWHG LQ 'HOJDGR 0DULD 0 ¶&DOL[WR %LHLWR 5HLPDJLQLQJ WKH 7H[W IRU WKH $JH LQ ZKLFK LW LV EHLQJ 6WDJHG· &RQWHPSRUDU\7KHDWUH5HYLHZ %LOOLQJWRQ 0 ¶%ORRG DQG *XWV· *XDUGLDQ 6DWXUGD\ 5HYLHZ 0DUFK
)XUWKHUUHDGLQJ %LOOLQJWRQ 0LFKDHO ¶6H[ %RR]H 'UXJV DQG 0R]DUW· *XDUGLDQ 0D\ ² 'HOJDGR 0DULD0 ¶$&RQWHQWLRXV3URGXFWLRQRI5DPyQGHO9DOOH ,QFOiQ·V%DUEDULF&RPHGLHV· :HVWHUQ(XURSHDQ6WDJHV ² ³³ ¶&DOL[WR %LHLWR·V 'RQ *LRYDQQL RXWUDJHV WKH %ULWLVK &ULWLFV· :HVWHUQ(XURSHDQ6WDJHV ² ³³ ¶$ 0DVNHG %DOO 'LH )OHGHUPDXV 7KUHHSHQQ\ 2SHUD &DOL[WR %LHLWR·V· :HVWHUQ(XURSHDQ6WDJHV ² 0$5,$0 '(/*$'2
,1'(;
'HU$EHQG $EUDPRY )\RGRU DEVWUDFWLRQ $FLVDQG*DODWHD DFUREDWLFV DFWLQJVFKRROV DFWLQJZRUNVKRSV ² VHHDOVR ZRUNVKRSWKHDWUH DFWRUWUDLQLQJ $NDODLWLV² %DUED ² %RJDUWDQG6,7,&RPSDQ\ ² %URRN 'RGLQ ² *URWRZVNL² /LWWOHZRRG 0H\HUKROG² 1LQDJDZD² 6WHLQ² 6WUDVEHUJ² 6X]XNL² $FWRUV· 'HYHORSPHQW6WUHDP² ² $FWRU·V6WXGLR 1HZ
$NDODLWLV -R$QQH ² $NLKLNR 6HQGD $OFyQ $OIUHGR DOLHQDWLRQ %UHFKW·VHSLFWKHDWUH² %URRN·VDFWRUWUDLQLQJ 6WHLQ·V WKHDWUH ² $OSHUV %RULV $PDW )UHGHULF² $PHULFD+XUUDK &KDLNLQ $PHULFDQ1DWLRQDO7KHDWHU $17 $PHULFDQ5HSHUWRU\7KHDWHU &DPEULGJH 0DVV DPSKLWKHDWUHV $PSKLWU\RQ ² $QGWKH6KLS6DLOV2Q ILOP $QGHUVRQ /DXULH $QGUH\HY /HRQLG $QGURPDTXH 5DFLQH $QJHOIDFH )RUHPDQ $QJHOVLQ$PHULFD .XVKQHU DQLPDOV $QLPDWLRQV %UHXHU $QQD.DUHQLQD 7ROVWR\ $QWL([KLELWLRQVHH 3RSXODU([KLELWLRQ DQWLIDVFLVP $QWLJRQH 6RSKRFOHV $QWRLQH $QGUp² $QWRQ\DQG&OHRSDWUD 6KDNHVSHDUH $SRFDO\SVLV&XP)LJXULV *URWRZVNL $SSLD $GROSKH $UFKHU -XOLH DUFKLWHFWXUH 5RQFRQL·VWKHDWUH 9DVLO\HY·VWKHDWUH $UGHQ $QQDEHO
,1'(;
$UGHQRI)DYHUVKDP $UHQD7KHDWUH² $UJHQWLQD 9LODULQ $ULHQ %DXVFK $ULRVWR /XGRYLFR 2UODQGRIXULRVR ² $UOHFFKLQRVHUYLWRUHGLGXHSDGURQH ² $UPILHOG 1HLO ² $URQ 5REHUW DUWJDOOHULHV SHUIRUPDQFHVLQ $UWDXG $QWRQLQ² ² $V
$XVWULD DXWHXU WKHDWUH DXWRFRXUV /HFRT DYDQWJDUGH $UWDXG (XURSHDQ /DQJ² 1HZ
,1'(;
%HUOLQ %HUOLQHU(QVHPEOH %HUQKDUG 7KRPDV %HUQVWHLQ /HRQDUG %HUWROD]]L &DUOR %KDUDWD %KDUDWDQDWL\DPWUDGLWLRQ %LEOLFDOWKHPHV %LHLWR &DOL[WR² %LJ7R\V :KLWH %LOOLQJWRQ 0LFKDHO %LOO\%XGG %ULWWHQ /RV%LRPERV7KH6FUHHQV ELRPHFKDQLFV² ¶7KH%LUWKRI7UDJHG\· 1LHW]VFKH ² 7KH%LUWKGD\3DUW\ 3LQWHU %ODFN6ZDQ7KHDWUH&RPSDQ\² EODFNIDFHPLQVWUHOV\ :RRVWHU*URXS ² %ODQFKHWW &DWH %ODXEDUW %DXVFK·VSURGXFWLRQ² %OLQ 5RJHU 7KH%OLQG*LDQWLV'DQFLQJ 6HZHOO %OLW]VWHLQ 0DUF %ORRG:HGGLQJ /RUFD %OXPHQWKDO (LOHHQ ² %RDO $XJXVWR² WKHERG\ LQ$NDODLWLV·VWKHDWUH LQ$UWDXG·VFRQFHSWLRQRI WKHDWUH LQ%DXVFK·VGDQFHWKHDWUH LQ&KDLNLQ·VZRUNVKRSV LQ *URWRZVNL·VDFWRUWUDLQLQJ /LWWOHZRRG·VXVHRINLQHVLFV LQ 1LQDJDZD·VDFWRUWUDLQLQJ 2QWRORJLFDO+\VWHULF7KHDWHU :RRVWHU*URXS·VWKHDWUH² %RJDUW $QQH² %ROHVODYVN\ 5LFKDUG %RORJQD %ROW 5REHUW %RQG (GZDUG² %RQG\ /XF %RQQ² 7KH%RRNRI'DQFHV %DUEDDQG2GLQ 7HDWUHW %RULV*RGXQRY 3XVKNLQ %RURYVN\ 'DYLG %RURZVNL :LHVODZ %RVWRQ %RVWRQ6KDNHVSHDUH&RPSDQ\
%RXOH] 3LHUUH ERXUJHRLVWKHDWUH 6WHLQ² %RYLVD 0LODQ 5RQFRQL·VSURGXFWLRQV ² %UDFH8S %UDKP 2WWR %UDQDJK .HQQHWK %UDQGRQ -DPHV %UDXQ (GZDUG %UD]LO %RDO·VSROLWLFDOVWDWXV 7KH%UHDGDQG3XSSHW7KHDWUH² %UHFKW %HUWROW² ² %RJDUW·VVWDJLQJRI 1R3OD\V1R3RHWU\… 7KH ([FHSWLRQDQGWKH5XOH 7KH)OLJKW RYHUWKH2FHDQ 7KH*RRG3HUVRQRI 6]HFKZDQ LQIOXHQFHRQGLUHFWRUV ² 7KH/LIHRI*DOLOHR 0DKDJRQQ\ 7KH0HDVXUHV 7DNHQ 7KH0RWKHU ² 0RWKHU&RXUDJH 1R 3OD\V1R3RHWU\… 7KH5HVLVWDEOH 5LVHRI$UWXUR8L 7KH 5RXQGKHDGVDQGWKH3RLQWHG+HDGV 6W-RDQRIWKH6WRFN\DUGV 6FKZH\N LQWKH6HFRQG:RUOG:DU DQG 6KDUPDQ·VZRUN 6KRUW 2UJDQXP 7KH7KUHHSHQQ\2SHUD ² %UHFKW 6WHIDQ %UHFKW·V$VKHV %UHWRQ 7RPiV /DYHUEHQDGHODSDORPD ² %UHXHU /HH² 7KH%ULJ %URZQ ² %ULVEDQH .DWKHULQH %ULWWHQ %HQMDPLQ %LOO\%XGG 7XUQ RIWKH6FUHZ %URDGZD\ UHDFWLRQVDJDLQVW 7KH%URNHQ-XJ .OHLVW %URRN 3HWHU ² ² %URRNO\Q$FDGHP\RI0XVLF 7KH%URWKHUV.DUDPD]RY 'RVWRHYVN\ ² %URWKHUVDQG6LVWHUV $EUDPRY %URZQ .HQQHWK ² %UXVVHOV
,1'(;
%UXVWHLQ 5REHUW %FKQHU *HRUJ 'DQWRQ·V'HDWK %XQUDNX %XUJXQG\ %XU\ -RKQ %XVFHPL 6WHYH &DELQ3UHVVXUH %RJDUW &DIp0OOHU %DXVFK &DOGHUyQ 3DVROLQL ² &DOGHUyQGHOD%DUFD 3HGUR 7KH &RQVWDQW3ULQFH /LIHLVD 'UHDP &DOLIRUQLD VHWWLQJIRU6HOODUV· ZRUN &DPEULGJH)RRWOLJKWV &DPtGHQLW 3DVTXDO LO&DPSLHOOR *ROGRQL 3LFFROR7HDWUR SURGXFWLRQ &DQDGDVHH 4XpEHF &DQDOHV $QWRQLR &DUUDUR 7LQR &DUWRXFKHULH /DFDVDGH%HUQDUGD$OED /RUFD &DVDUqV 0DULD &DVFDQGR &DWDODQ1DWLRQDO7KHDWUH &DWDORQLD LPSDFWRI3DVTXDO 7KH&HQFL 6KHOOH\ FHQVRUVKLS &HQWUH,QWHUQDWLRQDOGH&UpDWLRQV 7KpkWUDOHV &HQWUR'UDPiWLFR1DFLRQDO 0DGULG &HUFHDX 6ODYNLQ ² &HX[TXLP·DLPHQW… &KpUHDX &KDLNLQ -RVHSK² &KDSOLQ &KDUOLH &KDSPDQ +HQU\ FKDUDFWHUFKDUDFWHULVDWLRQ %URRN·V 0LGVXPPHU1LJKW·V'UHDP LQ *URWRZVNL·VWKHDWUH 1LQDJDZD·V LGHDV² 2SHQ7KHDWUH·V H[SHULPHQWDWLRQ 6WDQLVODYVN\·V WHDFKLQJV² 6WUDVEHUJ·VPHWKRG &KkWHOHW7KHDWUH 3DULV &KHHNE\-RZO² $&KHHU\6RXO :KLWH ²
&KHNKRY $QWRQ 7KH &KHUU\2UFKDUG ² ² ,YDQRY ² 3ODWRQRY $3OD\:LWK1R1DPH 7KH6HDJXOO 7KH7KUHH6LVWHUV ² 8QFOH9DQ\D &KHNKRY 0LNKDLO &KHQH\ 6KHOGRQ &KpUHDX 3DWULFH ² 7KH&KHUU\2UFKDUG &KHNKRY ² ² &KHYDOHULHUXVWLTXH 9HUJD &KHYHQJXU 3ODWRQRY &KKDXWUDGLWLRQ 7KH&KLOGUHQRI+HUDNOHV (XULSLGHV &KLOGV /XFLQGD &KLOH 9LODULQ &KLOWRQ &KDUOHV &KLQHVH.XQRSHUD &KRGHQ 'ROPD FKRUDOWKHDWUH FKRUHRJUDSK\ %DXVFK %LHLWR %RJDUW·VXVHRI HIIHFWVRI0F%XUQH\·VZRUN 6HOODUV &KULVWLDQ %HDWUL[ 7KH&KURQLFOHRI0DFEHWK 6X]XNL /H&LG &RUQHLOOH &LHVODN 5\V]DUG FLQHPDWLFWHFKQLTXHV² &LQHPDWLTXH :RRVWHU6WUHHW 1HZ
,1'(;
7KHDWUH:RUNVKRS 1LQDJDZD·VUHSHUWRLUH 9LODU·V DWWDFKPHQWWR &ODXVWURSKRELD 0DO\'UDPD7KHDWUH &OHYHU (GLWK FORWKLQJ LQ%DXVFK·VGDQFHWKHDWUH VHHDOVR FRVWXPHV &ORXGVWUHHW :LQWRQ ² FORZQLQJ LQ0QRXFKNLQH·VWKHDWUH /HV&ORZQV 7KpkWUHGX6ROHLO FRDXWKRULQJ² &RG\ * &ROG:DU FROODERUDWLRQ LQ$NDODLWLV·VWKHDWUH ² &KDLNLQ·VLQIOXHQFH /LWWOHZRRG·VEHOLHILQ² 0DO\ 'UDPD7KHDWUH² 7KpkWUH GX6ROHLO FROODJH LQ$NDODLWLV·VWKHDWUH LQ %RJDUW·VZRUN /\XELPRY 0DO\'UDPD7KHDWUH 2SHQ 7KHDWUH 6X]XNL·VWKHDWUH LQ 9DVLO\HY·VWKHDWUH ² :LOVRQ·V WKHDWUH FROOHFWLYLVP %UHXHU·VWKHDWUH² &KDLNLQ·VSROLWLFV 0QRXFKNLQH VHHDOVR FUpDWLRQFROOHFWLYH FRORXU LQ1HPLURYLFK·VSURGXFWLRQV LQ5HLQKDUGW·VWKHDWUH ZKLWH LQ6WUHKOHU·V7KH&KHUU\2UFKDUG ² &ROXPELD8QLYHUVLW\ &RPEDWGHQqJUHHWGHFKLHQV .ROWqV &RPHDQG*R 0DERX0LQHV &RPHGLDVLQWtWXOR /RUFD ² &RPpGLH)UDQoDLVH FRPHG\ &RSHDX 7KHDWUH:RUNVKRS FRPPHGLDGHOO·DUWH LQIOXHQFH /LWWOHZRRG·VXVHRI 0H\HUKROG·VZULWLQJVRQ LQ 0QRXFKNLQH·VWKHDWUH ² 6WUHKOHU·V$UOHFFKLQR ² 7DLURY·VDFWRUV FRPPXQLRQ ² FRPPXQLVP LQ3LVFDWRU·VZRUN FRPPXQLW\ LQ6FKXPDQQ·VWKHDWUH LQ6HOODUV· WKHDWUH LQ6WHLQ·V WKHDWUH ²
/D&RPSDJQLHGHVTXLQ]H &RPSDQ\% %HOYRLU 6\GQH\ ² ² 7KH&RQQHFWLRQ *HOEHU 7KH&RQTXHVWRI0H[LFR ² &RQVHUYDWRLUH 7KH&RQVWDQW3ULQFH &DOGHUyQ FRQVWUXFWLYLVP &RQWHVG·+RIIPDQQ &RSHDX -DFTXHV² /HV&RSLDX[ DFWLQJFRPSDQ\ ² &RULRODQXV 6KDNHVSHDUH &RUQHLOOH 3LHUUH &RUQHUVWRQH7KHDWUH&RPSDQ\ &RVuIDQWXWWH 0R]DUW /H&RVWXPH %URRN FRVWXPHV LQ'RQQHOODQ2UPHURG·V SURGXFWLRQV 6X]XNL·VWKHDWUH ² LQ7DLURY·VWKHDWUH 7KpkWUH GX6ROHLO LQ:RRVWHU*URXS·V7R
,1'(;
IODPHQFRLQ3DVTXDO·V%HQJXHV *URWRZVNL·VXVHRI /H&RPSWH·V SURGXFWLRQV 0H\HUKROG·VXVHRI LQ0QRXFKNLQH·VWKHDWUH LQ :RRVWHU*URXS·VWKHDWUH VHHDOVR %DXVFK 3LQD GDQFHRSHUD² 'DQVODVROLWXGHGHVFKDPSVGHFRWRQ .ROWqV 'DQWH·V,QIHUQR 'DQWRQ·V'HDWK %FKQHU 'DVWp +pOqQH0DULH 7KH'DZQ 9HUKDHUHQ $'D\/RQJHUWKDQD&HQWXU\ $LWPDWRY 'D\DQG1LJKW 'H*URDW $QGUHZ 7KH'HDG&ODVV .DQWRU 'HDG(QG.LGV $+LVWRU\RI1XFOHDU 3RZHU 'HDIPDQ*ODQFH :LOVRQ 7KH'HDWKRI.OLQJKRIIHU $GDPV6HOODUV 'HDWKRI7LQWDJLOHV 0DHWHUOLQFN ¶GHHSIRFXV· 'HODQH\ 6KHODJK 7KH'HPRQ 5XELQVWHLQ 'HQPDUNVHH 2GLQ7HDWUHW /H'HUQLHUFDUDYDQVpUDLO 2G\VVpHV 0QRXFKNLQH 'HUUDK 7KRPDV 'HVDUWKH *pUDUG 'HVFORW 0LTXHO GHVLJQVHH VWDJHGHVLJQ 'HVLUHXQGHUWKH(OPV 2·1HLOO 7KH'HYLOV 'RVWRHYVN\ 'RGLQ·V SURGXFWLRQ² 1HPLURYLFK·VSURGXFWLRQ GLDORJLFVWUXFWXUHV 'LGRDQG$HQHDV 3XUFHOO GLUHFWRUV &KpUHDX·VYLHZ 'RQQHOODQ·VLGHDRI² /LWWOHZRRG·VYLHZV² 0QRXFKNLQHRQUROHRI 6WHLQ·V SULQFLSOHVRIGHPRFUDF\ ² 9LODU·VDWWDFNRQKLJKFODLPVRI GLUHFWRUV· WKHDWUH GLVSRVLWLIIL[H LPPXWDEOHVWDJHVHW ² /D'LVSXWH 0DULYDX[ ²
'U)DXVWXV 0DUORZH 'RGLQ /HY ² 7KH'RPHVWLF5HVXUUHFWLRQ&LUFXV 'RQ*LRYDQQL 0R]DUW 'RQQHOODQ 'HFODQ² 'RUW %HUQDUG 'RVWRHYVN\ )\RGRU² ² 7KH'UDJRQ·V7ULORJ\ /HSDJH ² 'UDPDRI/LIH +DPVXQ GUDPDWLFVWUXFWXUHV %UHFKW² 3LVFDWRU² GUDPDWLFWKHDWULFDOVSDFH $NDODLWLV·V DFWRUV² /LWWOHZRRG·VVWDJHFUDIW ² 6WDQLVODYVN\·VWHDFKLQJV 6X]XNL·VSRVWPRGHUQLVP 9DVLO\HY·VWKHDWUH 7KH'UHDP3OD\ 6WULQGEHUJ 'XFKDPS 0DUFHO 'XOOLQ &KDUOHV 'XQFDQ ,VDGRUD² 'XVH (OHRQRUD 'VVHOGRUI '\NKRYLFKQ\ ,YDQ (GLQEXUJK)HVWLYDO (GZDUG,, (J\SWRORJ\ )RUHPDQ (LQVWHLQRQWKH%HDFK :LOVRQDQG*ODVV ² (LVHQKRZHUDGPLQLVWUDWLRQ (OHFWUD 6RSKRFOHV ² ² (OHNWUD 6WUDXVV 7KH(OHSKDQW9DQLVKHV (OLRW 76 VHH 0XUGHULQWKH&DWKHGUDO (OLVHHYD 9DOHQWLQD (OL]DEHWKDQ7UXVW2SHUD&RPSDQ\ HPRWLRQV LQ$NDODLWLV·VWKHDWUH LQ %DXVFK·VGDQFH %URRN·V SURGXFWLRQRI2UJKDVW HPSDWK\ LQ%UHFKW·VWKHDWUH 1LQDJDZD·V LGHDVDERXWFKDUDFWHU² 6WUDVEHUJ·VPHWKRGRI¶DIIHFWLYH PHPRU\· ² 7KH(PSHURU-RQHV 2·1HLOO ² 7KH(QHPLHV *RUN\ (QJOLVKQHVV LQ:DUQHU·V5LFKDUG,, (QULJKW 1LFN HQVHPEOHWKHDWUH $NDODLWLV²
,1'(;
$UPILHOG %UHXHU·VFROOHFWLYH ² &KDLNLQDQG2SHQ7KHDWUH &KHHNE\-RZO² &RSHDX &UDPSKRUQ·VSURMHFWV² ² /LWWOHZRRG·VEHOLHILQ 6FKDXEKQH 6WUHKOHU (SKHPHULF 0HFKDQLF 7KHDWUH HSLFWKHDWUH %UHFKW² 6WDQLVODYVN\ HSLVRGLFVWUXFWXUHV /\XELPRY·VZRUNV 0H\HUKROG² ² 7KH(TXDOL]HU (VFRODGH7HDWUHGHO·2UIHRGH6DQWV %DUFHORQD (VSHUW 1XULD (VSULX 6DOYDGRU (VVHQ (VVOLQ 0 (WVRXGDLQ GHVQXLWVG·pYHLO &L[RXV pWDW LQ0QRXFKNLQH·VLGHDRIWKHDWUH pWXGHV (XULSLGHV %DFFKDH 7KH &KLOGUHQRI+HUDNOHV ,SKLJHQLDLQ $XOLV 0HGHD 3URPHWKHXV%RXQG (YHU\PDQ ² 7KH([FHSWLRQDQGWKH5XOH %UHFKW ([LW$UW*DOOHU\ 1HZ
)HVWLYDORI6\GQH\ )LGHOLR %HHWKRYHQ )LODWRY /HRQLG ILOP %DXVFK &KpUHDX ² ² LQIOXHQFHRQ%UHXHU·V WKHDWUH ODQJXDJHV XVHRILQ WKHDWUH )LUH )LUVW:RUOG:DU² )LVK6WRU\ )ODJV 3DTXHW )ODNLRV $UL 7KH)OLJKWRYHUWKH2FHDQ %UHFKW )ORUHV $OIRQV 7KH)O\LQJ'RFWRU 0ROLqUH )R 'DULR )RRWIDOOV )RUDQ(QGWRWKH-XGJHPHQWRI*RG $UWDXG ² )RUG -RKQ ·7LV3LW\6KH·VD:KRUH )RUHPDQ 5LFKDUG ² )RUV\WKH :LOOLDP IRUXPWKHDWUH %RDO² ² )RXQWDLQ &ODUHQFH )UDQFH %RDOLQ ² HDUO\ GHPRFUDWLVHGWKHDWUH )UDQFRUHJLPH )UD\Q 0LFKDHO )UHHPDQ 0RUJDQ )UHLH%KQHWKHDWUHFRPSDQ\ )UHQFKQHRFODVVLFDOWKHDWUH )UHQFK5HSXEOLFDQLVP 9LODU )ULJHULR (]LR )XFKV (OLQRU² )XHQWHRYHMXQD 9HJD )XQ3DODFHSURMHFW /LWWOHZRRG *DOLQ 6HUJH\ *DOLQGR -RVHS *DQ] %UXQR *DUFtD 9LFWRU *DULQ (UDVW *DWWL $UPDQG *DXGHDPXV .DOHGLQ /H*DXORLV *HOEHU -DFN *pPLHU )LUPLQ JHQGHU LQ%DXVFK·VGDQFHWKHDWUH ² LQ'RQQHOODQ·V$V
,1'(;
/LNH,W LQ/H&RPSWH·VWKHDWUH ² :DUQHU·VH[SORUDWLRQRI ² *HQHW -HDQ *HQQHYLOOLHUV *HRPHWU\RI0LUDFOHV /HSDJH *HUPDQ&RPPXQLVW3DUW\ *HUPDQ([SUHVVLRQLVWFLQHPD *HUPDQ\ JHVWXUH 7KH*KRVW6RQDWD 6WULQGEHUJ *KRVWV ,EVHQ ,O*LRFRGHLSRWHQWL 6KDNHVSHDUH·V+HQU\ WULORJ\ *LURIOp*LURIOD *LXOLR&HVDUH +DQGHO *ODVV 3KLOLS *OLXOWLPLJLRUQLGHOO· XPDQLWj .UDXV *OREH7KHDWUH /RQGRQ *O\QGHERXUQH *RGDUG -HDQ/XF *RHWKH -RKDQQ:ROIJDQJYRQ )DXVW *RJRO 1LNRODL *ROGHQ0DVNDZDUG *ROGLQJ :LOOLDP *ROGRQL &DUOR 6WUHKOHU·VSURGXFWLRQV ² *ROGVFKPLGW 0LULDP *ROGVWHLQ 6HWK *RQFKDURY $QGUH\ 7KH*RRG3HUVRQRI6]HFKZDQ %UHFKW *RRGPDQ -RKQ *RRUQH\ +RZDUG *RUFKDNRY 1 *RUGRQ )LRQD *RUN\ 0D[LP 7KH*RVSHODW&RORQXV 7KH*RYHUQRU·V)DPLO\ &KULVWLDQ *UDHOOV *XLOOHP-RUGL *UDVVL 3DROR *UHHNWKHDWUH &RSHDX·VLQWHUHVW /LWWOHZRRG·VXVHRI 0H\HUKROG·V ZULWLQJVRQ V\QFUHWLVP 7KH*UHHNV %DUWRQ *ULER\HGRY $OHNVDQGU *URV] *HRUJH *URWRZVNL -HU]\ ²
*URXS7KHDWUH 1HZ
,1'(;
,6KDOO1HYHU5HWXUQ .DQWRU ,EVHQ +HQULN *KRVWV +HGGD*DEOHU 7KH9LNLQJVDW +HOJHODQG LGHQWLW\ :RRVWHU*URXS·VWKHDWUH ² 7KH,GLRW 'RVWRHYVN\ ,GRPHQHR 0R]DUW ,KHULQJ +HUEHUW ,L]XND 1DRPL /HV,NV LOOXVLRQ GHVWUR\HGLQ6WHLQ·VWKHDWUH ² *URWRZVNL·VUHMHFWLRQRI WKHDWUHDV LQ3DVTXDO·VWKHDWUH LQ6WUHKOHU·VSURGXFWLRQV² /· ,OOXVLRQFRPLTXH &RUQHLOOH LPDJHV $NDODLWLV·VWKHDWUH LQ /HSDJH·VWKHDWUH² LQ 0F%XUQH\·VZRUN 1HNURVLXV·V WKHDWUH² LPDJLQDWLRQ LQ&UDLJ·VWKHDWUH² LQ 6WUDVEHUJ·VPHWKRG ² ,PSHULDO0DO\7KHDWUH LPSURYLVDWLRQ %DUED·VWKHDWUH LQ %DXVFK·VGDQFHWKHDWUH %RDO·V IRUXPWKHDWUHZRUNVKRSV &KDLNLQ·VSURGXFWLRQV² /LWWOHZRRG·VDFWRUWUDLQLQJ 3DVTXDO·VZRUN 6WUHKOHU 7KpkWUHGX6ROHLO LQ 9DVLO\HY·VWKHDWUH ,QWKH3HQDO&RORQ\ ,QGHSHQGHQW ² ,QGHSHQGHQWRQ6XQGD\ ,QGHSHQGHQW7KHDWUH .UDNyZ /·,QGLDGH &L[RXV LQGXVWULDOVSDFHV $UPILHOG·VWKHDWUH ,QILQLWLHV %DUURZ ² ,QJDOOV -DPHV ,QWHUQDWLRQDO6FKRRORI7KHDWUH $QWKURSRORJ\ ,67$ ² ,QWLPDF\ &KpUHDX ,QWLPDWH7KHDWUH LQYLVLEOHWKHDWUH ,R%HUWROW%UHFKW ,RQHVFR (XJqQH ,SKLJHQLDLQ$XOLV (XULSLGHV ,SKLJHQLHDXI7DXULV ,UDT
,ULVKQHVV :DUQHU·VH[SORUDWLRQRI ,UYLQJ +HQU\ ,WDOLDQFXOWXUH 6WUHKOHU·VLQVLJKWV ,WDO\ DQDUFKRWHUURULVP VHHDOVR 0LODQ :RUNFHQWUH 3RQWHGHUD ,YDQRY 9\DFKHVODY ,YDQRY &KHNKRY ² ,·YH*RWWKH6KDNHV )RUHPDQ ² -DFRYVNLV $GRPDV -DPHV +HQU\ -DQDFHN /HRV -DSDQHVHWKHDWUH -DUHPD 0DULD -HQFNV &KDUOHV -HQXID -DQDFHN -HVXV&KULVW6XSHUVWDU /HV-HXQHVIHQVHWO·DUDLJQpH /HV&RSLDX[ -RKQ%XOOLRQ -RKQ*DEULHO%RUNPDQ -RKQQ\1REOH 0DF&ROO -RQHV &KHUU\ -RQHV &UDLJ -RQHV 6DEUD -RQVRQ %HQ 9ROSRQH -RRVV .XUW -RUGDQ -XQH -RXYHW /RXLV -XLOOLDUG6FKRRORI0XVLF 1HZ
,1'(;
SURGXFWLRQ 1LQDJDZD·V YHUVLRQV 3LFFROR7HDWUR SURGXFWLRQ ² 6HOODUV· SURGXFWLRQ² 6X]XNL·V SURGXFWLRQ .LVVLQJ*RG*RRGE\H -RUGDQ 7KH.LWFKHQ :HVNHU .OHEHUJ /DUG .OHLVW +HLQULFKYRQ .QHEHO 0DULD .RFKHUJLQ (GXDUG² .ROWqV %HUQDUG0DULH .RPLVVDU]KHYVN\ )\RGRU .RQWDNWKRI %DXVFK .RRQHQ $OLVD² .RUGLDQ .RURVW\OHY 9DGLP .UDNyZ .UjPSDFNWKHDWUHFRPSDQ\ .UDSS·V/DVW7DSH %HFNHWW .UDXV .DUO .UXVH $ .XEULFN 6WDQOH\ .XPHLJD -HQQLIHU .XULVKHY 6HUJH\ .XURVDZD $NLUR .XVKQHU 7RQ\ .\RJHQWUDGLWLRQ /DEDQ 5XGROI /DERUDWRU\7KHDWUH /DG\0DFEHWKRI0WHQVN 6KRVWDNRYLFK ² 7KH/DPHQWRIWKH(PSUHVV %DXVFK /DQJ -DFN² ODQJXDJH $UWDXG·VUHYROWDJDLQVW LQ $UWDXG·VZRUN² LQ/HSDJH·V ZRUN² LQ5HLQKDUGW·VWKHDWUH LQ9DVLO\HY·VWKHDWUH LQ :LOVRQ·VWKHDWUH ² 7KH/DVW6HSWHPEHU ILOP /DWHQDV )DXVWDV /DXJKWRQ &KDUOHV /DXUHQW -HDQQH² /DXULH +XJK /DYD )RUHPDQ /DYURY 1LNROD\ /H&RPSWH (OL]DEHWK² /HFRT -DFTXHV² /HPrWUH -HDQ-DFTXHV
/HQLQJUDG6WDWH7KHDWUH,QVWLWXWH /HSDJH 5REHUW² /HVWHU $GULDQ² /HWWKH$UWLVWV'LH .DQWRU /HYLQVRQ $QGUHL /LFHXWKHDWUH %DUFHORQD 7KH/LIHRI*DOLOHR %UHFKW /LIHLVD'UHDP &DOGHUyQ /LIHRI0DQ $QGUH\HY 7KH/LIHDQG7LPHVRI6LJPXQG)UHXG :LOVRQ OLJKWOLJKWLQJ $UWDXG·VLGHDV &KDLNLQ·V7HUPLQDO &UDLJ·VXVHRI /LWWOHZRRG·VH[SHULPHQWDOLGHDV ² 3LVFDWRU·VXVHRI :LOVRQ·VWKHDWUH² /LJKWKRXVH&RPSDQ\ $GHODLGH ² /LQGHIRUV 9LYHFD /LQJRWWR 7XULQ /LVWHQ /\XELPRY /LWKXDQLDQ,QWHUQDWLRQDO7KHDWUH)HVWLYDO /,)( 7KH/LWWOH6TXDUH /LWWOH7KHDWUHPRYHPHQW /LWWOHZRRG -RDQ² /LYLQJ7KHDWUH² ² /L]DUDQ $QQD /OR\G:HEEHU $QGUHZ /ROLWD/ROLWDVFHQHJJLDWXUD ² /RQGRQ 5R\ /RQGRQ 6WHLQ·VSURGXFWLRQRI 6XPPHUIRON 7KHDWUH:RUNVKRS WKHDWUHV VHHDOVR XQGHU QDPHVRIWKHDWUHV $/RQJ/RQJ7UDLO UDGLRSURJUDPPH /RUFD )HGHULFR*DUFtD ² /DFDVDGH%HUQDUGD$OED /RUGRIWKH)OLHV *ROGLQJ /RUHQ]DFFLR 9LODU·VSURGXFWLRQ /RV$QJHOHV)HVWLYDO 7KH/RVW2QHV %HFNHWW ² /RWW (ULF /RYHDQG'HDWKLQ9HURQD 1HNURVLXV /6' …-XVWWKH+LJK3RLQWV /XFHVGH%RKHPLD 9DOOH,QFOiQ /XOX /\RQ DPSKLWKHDWUH
,1'(;
/\XELPRY <XU\² 0DERX0LQHV ² ² 0DFEHWK 6KDNHVSHDUH %LHLWR·V SURGXFWLRQV ² /LWWOHZRRG·V SURGXFWLRQ 1HNURVLXV·V SURGXFWLRQ 1LQDJDZD·V YHUVLRQV 6WUHKOHU·V SURGXFWLRQ 0F%XUQH\ 6LPRQ² 0F&DUWK\LVP 0DF&ROO (ZDQ 0F'RUPDQG )UDQFHV 0DFKDGR (GXDUGR 7KH0DGPDQDQGWKH1XQ .DQWRU PDGQHVV $UWDXG 0DHWHUOLQFN 0DXULFH 0DJQL 0DUFHOOR /H0DKDEKDUDWD %URRN 0DKDJRQQ\ %UHFKW /D0DLVRQ1DWDOH &RSHDX 0DOHF]HFK 5XWK 0DOHYLFK .D]LPLU 0DOLQD -XGLWK DQG/LYLQJ7KHDWUH² ² 0DO\'UDPD7KHDWUHRI6W3HWHUVEXUJ ² 0DPRQWRYDV $QGULXV $0DQIRU$OO6HDVRQV7KRPDV0RUH %ROW 0DQFKHVWHU /LWWOHZRRGDQG:RUNHUV· 7KHDWUH0RYHPHQW 0DULYDX[ 3LHUUH ² 0DUU 'DYLG 7KH0DUULDJHRI)LJDUR 0R]DUW 0DU[%URWKHUV 0DU[LVP PDVNV /HV&RSLDX[ LQ6WUHKOHU·V $UOHFFKLQR Q 7KpkWUHGX6ROHLO LQ:RRVWHU*URXS·VWKHDWUH PDVWHUDFWRU 0DVWHUVRQ 3HWH² 0DVXUFD)RJR %DXVFK ,O0DWWLQR 0D\ HYHQWV 3DULV² 0D\DNRYVN\ 9ODGLPLU 0D]HSD 7FKDLNRYVN\ 0HDVXUHIRU0HDVXUH 6KDNHVSHDUH %LHLWR·VSURGXFWLRQ &UDPSKRUQ·VSURGXFWLRQ
'RQQHOODQ·VSURGXFWLRQ 5RQFRQL·VSURGXFWLRQ 7KH0HDVXUHV7DNHQ %UHFKW 0HGHD (XULSLGHV PHGLHYDOP\VWHU\SOD\V 0HH &KDUOHV 0HLQLQJHUFRPSDQ\ 0HNDV -RQDV 0HOERXUQH ² 0HOERXUQH7KHDWUH&RPSDQ\ 0HOYLQ 0XUUD\ PHPRU\ .DQWRU·VH[SORUDWLRQRI² VHHDOVR ¶DIIHFWLYHPHPRU\· 0HQLQ:KLWH ² 0HQQHQ 5LFKDUG 0HQR)RUWDVWKHDWUH 9LOQLXV 0pSKLVWR 0QRXFKNLQH 7KH0HUFKDQWRI9HQLFH 6KDNHVSHDUH PHWDSKRU $UWDXG·VXVHRI LQ 0QRXFKNLQH·VWKHDWUH² 6WUHKOHU·V.LQJ/HDU PHWDWKHDWUH 1LQDJDZD ¶0HWKRGRI3K\VLFDO$FWLRQV· 6WDQLVODYVN\ ² 0pYLVWR $XJXVWH:LVWHDX[ 0H\HUKROG 9VHYRORG² ² LQIOXHQFH 0LDPL9LFH $0LGVXPPHU1LJKW·V'UHDP 6KDNHVSHDUH %LHLWR·VSURGXFWLRQ %RJDUW·VSURGXFWLRQ %URRN·V SURGXFWLRQ ² 'RQQHOODQ·V SURGXFWLRQ 5HLQKDUGW·V SURGXFWLRQ² 0LODQ 5RQFRQL·VSURGXFWLRQV VHHDOVR 3LFFROR7HDWURGL0LODQR 7HDWURDOOD6FDOD 0LOLRWWL 9DVVLO\ 0LOOHQQLXP$SSURDFKHV .XVKQHU 0LOOHU +DUU\0 7KH0LOOLRQ %DUEDDQG2GLQ7HDWUHW ² 0LQFKLQWRQ 0DUN ² 7KH0LQG.LQJ )RUHPDQ $0LQXWH7RR/DWH 7KH0LUDFOH /H0LUDFOHGXSDLQGRUp 0LUUHQ +HOHQ PLVHHQVFqQH $QWRLQH·VSUDFWLFH %RJDUW 'RQQHOODQ·VFRQFHUQV
,1'(;
6WDQLVODYVN\·VUHDOLVP 9LODU·V UHMHFWLRQRI 0LVV8QLYHUVDO+DSSLQHVV )RUHPDQ 0QHPRQLF 0QRXFKNLQH $ULDQH² 0ROLqUH /H0RQGH 0RQMR -XVWLQ PRQRORJXHV PRQWDJH %DXVFK·VGDQFHWKHDWUH² /\XELPRY 0QRXFKNLQH·VWKHDWUH 5RQFRQL 0RQWHYHUGL &ODXGLR $0RQXPHQWIRU,VKL 0RRUH *HRUJH 0RUHWWL 0DUFHOOR 7KH0RUPRQ3URMHFW 0RVFRZ VHHDOVR .DPHUQ\ WKHDWUH 6WDWH,QVWLWXWHIRU7KHDWUH $UWV 0RVFRZ$UW7KHDWUH DQG&UDLJ /\XELPRY·V RSSRVLWLRQWR 0H\HUKROG·V UHODWLRQVKLSZLWK DQG1HPLURYLFK ² DQG6WDQLVODYVN\² 7KH0RWKHU %UHFKW ² 0RWKHU&RXUDJH %UHFKW 7KH0RXQWDLQ*LDQWV 3LUDQGHOOR 0RXQWDLQ+DOO7KHDWUH PRYHPHQW LQ$UWDXG·VFRQFHSWLRQRI WKHDWUH %DXVFK·VFKRUHRJUDSKLF SURGXFWLRQ LQ&KDLNLQ·VWKHDWUH LQ&UDLJ·VWKHDWUH LQ /HSDJH·VZRUN² /LWWOHZRRG·V WUDLQLQJRIDFWRUV LQ1HNURVLXV·V WKHDWUH 6WUDVEHUJ·V¶GHHSIRFXV· LQ7DLURY·VWKHDWUH :LOVRQ·V XVHRI² 0R\HUV %LOO 0R]DUW :ROIJDQJ$PDGHXV &RVuIDQ WXWWH 'RQ*LRYDQQL 7KH0DUULDJHRI)LJDUR 0R]DUWDQG6DOLHUL 3XVKNLQ ² 0XFK$GR$ERXW1RWKLQJ 6KDNHVSHDUH 0XFK:RHIURP:LVGRP *ULER\HGRY 0OOHU +HLQHU PXOWLPHGLD 0XQFK (GYDUG 0XUGHULQWKH&DWKHGUDO (OLRW
0XVHXPRI0RGHUQ$UW PXVHXPV SHUIRUPDQFHVLQ PXVLF LQ$NDODLWLV·VDFWRUWUDLQLQJ %DUED·VWKHDWUH² LQ%DXVFK·V GDQFHWKHDWUH LQ%UHXHU·V WKHDWUH² &UDLJ·VXVHRI LQ 'RGLQ·VWKHDWUH LQ 0QRXFKNLQH·VWKHDWUH 5HLQKDUGW·VXVHRI 6WUHKOHU·V DFKLHYHPHQW LQ6X]XNL·VWKHDWUH 7DLURY·VWKHDWUH VHH DOVR PXVLFDOV RSHUD PXVLFDOV %RJDUW·VSURGXFWLRQV 6KDUPDQ·VSURGXFWLRQV ² 7KH0XWDWLRQ6KRZ &KDLNLQ 0X\EULGJH (DGZHDUG 0\+HDG:DVD6OHGJHKDPPHU )RUHPDQ 0\VWHULHV ² 1DERNRY 9ODGLPLU 1DGM -RVHI 1DJDVDNL 1DQF\)HVWLYDORI
,1'(;
1HZ$PHULFDQ%DOOHW 1HZ'UDPD HDUO\ V 1HZ
2OG7RWH7KHDWUH&RPSDQ\² ² 2OLYHU 2OLYLHU /DXUHQFH 2O\PSLDWKHDWUH /RQGRQ 2QWKH'UDPDWLF3DVVLRQV, 2QWKH'UDPDWLF3DVVLRQV,, 2·1HLOO (XJHQH 'HVLUHXQGHUWKH(OPV 7KH(PSHURU-RQHV ² 7KH+DLU\$SH 6WUDQJH ,QWHUOXGH 2QWRORJLFDO+\VWHULF7KHDWHU ² RSHQDLUSURGXFWLRQV %UHXHU·V7KH 7HPSHVW &RSHDX·VUHOLJLRXV VSHFWDFOHV 5HLQKDUGW·V $ 0LGVXPPHU1LJKW·V'UHDP ² 5RQFRQL·VSURGXFWLRQV 6FKXPDQQ·V'RPHVWLF5HVXUUHFWLRQ &LUFXV 2SHQ7KHDWHU 1HZ
,1'(;
2[IRUG 5HLQKDUGW·V$0LGVXPPHU 1LJKW·V'UHDP ² 2[\UKLQFXV(YDQJHOLHW 3DFLQR $O 3DJQHX[ 0RQLND SDLQWHUV &UDLJ :LOVRQ 3DODLVGH&KDLOORW 3DULV 9LODU·VZRUN ² 3DODLVGHV3DSHV $YLJQRQ ² 3DOHUPR 3DOHUPR %DXVFK 3DOO0DOO*D]HWWH 3DQGRUD·V&URVV +HZLWW 3DQLJUDKL 6DQMXNKWD² 3DTXHW $OIRQV 3DUDGLVH1RZ /LYLQJ7KHDWUH ² /HV3DUDYHQWV *HQHW 3DULV ¶DIWHUGLQQHUWKHDWUH· %RDO·V IRUXPWKHDWUHZRUNVKRSV² %URRN·VFRPSDQ\ &RSHDXLQ 5RQFRQL·VZRUNLQ 6HOODUVLQ 6WUHKOHU·VZRUNLQ 9LODU·V ZRUN ZRUNLQJFODVV VXEXUEV VHHDOVR 0D\ HYHQWV XQGHUQDPHVRIWKHDWUHV 3DULV7KHDWUH 3DVROLQL 3LHU3DROR² 3DVTXDO /OXtV² 3DVWHUQDN %RULV 3DWHO 1HLO /D3DWULHHQGDQJHU 3DWWHUVRQ 0LFKDHO 3HGX]]L 5LFKDUG 3HHU*\QW ,EVHQ 3HQJXLQ7RXTXHW )RUHPDQ 3HQWDJRQ :DVKLQJWRQ LQ6HOODUV· WKHDWUH 3HRQ\3DYLOLRQ 7DQJ;LDQ]X 3HUHVWURLND .XVKQHU 7KH3HUIHFWLRQLVW :LOOLDPVRQ SHUIRUPDQFH DQFLHQWWUDGLWLRQVXVHGE\ *URWRZVNL² %DUED·V LQYHVWLJDWLRQVLQWR XQGHU /HSDJH² DQGVWDJHGHVLJQ SHUIRUPDQFHSRHWU\ 3HUIRUPDQFH6\QGLFDWH 7KH3HUIRUPLQJ*DUDJH 3HULFOHV 6KDNHVSHDUH
3HUPDQHQW%UDLQ'DPDJH )RUHPDQ 7KH3HUVLDQV $HVFK\OXV 3HWHUDQG:HQG\ %UHXHU /H3HWLWSDXYUH &RSHDX 3HXSOHHW&XOWXUH ² 3KqGUH 5DFLQH ² 3KLOLSH *pUDUG 3KRHQL[ 7VYHWD\HYD SK\VLFDOH[HUFLVHV $NDODLWLV·VDFWRU WUDLQLQJ² ² %DUED·V DFWRUWUDLQLQJ² %URRN·VDFWRU WUDLQLQJ LQ&KDLNLQ·VWKHDWUH ² &UDPSKRUQ·VDFWRUWUDLQLQJ 6WHLQ·VDFWRUWUDLQLQJ 6WUDVEHUJ·VUHOD[DWLRQZRUN SK\VLFDOWKHDWUH 3LFFROL 0LFKHO 3LFFROR7HDWURGL0LODQR ² 3LFKHWWH +HQUL 3LJJ\%DQN ² 3LQJHW 5REHUW 3LQWHU +DUROG 3LUDQGHOOR /XLJL 3LURVPDQL 3LURVPDQL .RURVW\OHY 3LVFDWRU (UZLQ ² 3LVFDWRU%XKQH² 3LWRHII *HRUJHV 3ODQFKRQ 5RJHU 3ODQHOOD 3HUH 3ODWK 6\OYLD 3ODWR 3ODWRQRY $QGUH\ 3ODWRQRY &KHNKRY 3OD\ 0DERX0LQHV $3OD\:LWK1R1DPH &KHNKRY 3OD\ER[7KHDWUH 0HOERXUQH ² SOD\ZULJKWV )RUHPDQ 1HPLURYLFK LQ7KpkWUH/LEUH 3RH /XJQp SRHWLFWKHDWUH ² SRHWU\ $UWDXG·VXVHRI %UHXHU·V WKHDWUH² LQ /\XELPRY·VSURGXFWLRQV 6WUHKOHU·V SURGXFWLRQRI 3RODQG SROLWLFDOUHSUHVVLRQ %RDO ² 7KH3ROLWLFDO7KHDWUH 3LVFDWRU
,1'(;
SROLWLFV &KDLNLQ·VDFWLYLVP² &KpUHDX·VZRUN /H&RPSWH·VWKHDWUH /LWWOHZRRG·V DFWLYHFRQFHUQV /LYLQJ 7KHDWUH /\XELPRY·VFRQFHUQV ² 0H\HUKROG ² 0QRXFKNLQH PRWLYDWLRQRI 6HOODUV 3LVFDWRU² LQ 6WUHKOHU·VSURGXFWLRQV ¶SRRUWKHDWUH· 3RSRY $QGUHL 3RSRY ,JRU SRSXODUFXOWXUHHQWHUWDLQPHQW 3RSXODU([KLELWLRQ RU$QWL([KLELWLRQ SRSXODUWKHDWUH 3RUD\.RVKLWV $OH[H\ 7KH3RVVHVVHG 'RVWRHYVN\ SRVWPRGHUQLVP %RJDUW·VZRUN 6X]XNL·VWKHDWUH 3RZHUVRI'DUNQHVV 7ROVWR\ 3UDWR/DERUDWRU\² SUHQDUUDWLYH 3ULFH &HGULF 3ULQFHRI+RPEXUJ .OHLVW 3ULQFHVV%UDPELOOD 3ULQFLSDO7KHDWUH %DUFHORQD 3ULYDWH/LYHV &RZDUG SURMHFWHGLPDJHVWLWOHV 3URNRILHY 6HUJHL 3UROHWDULVFKHV7KHDWHU SURPHQDGHWKHDWUH² 3URPHWKHXV%RXQG (XULSLGHV SURWHVW %HFNDQG0DOLQD ² 6FKXPDQQ·VWKHDWUH² 3URYLGHQFH 5KRGHLVODQG 3U]\E\V]HZVNL 6WDQLVODZ SV\FKRORJLFDOUHDOLVPWKHDWUH (OS~EOLFR /RUFD 3XLJVHUYHU )DELj ² SXSSHWU\ 5RQFRQL·VWKHDWUH 6FKXPDQQ·VRSHUDWRUV ² VHH DOVR %UHDGDQG3XSSHW7KHDWUH %XQUDNX 3XUFHOO +HQU\ 3XVKNLQ $OHNVDQGU ² 4XDGUL )UDQFR 4XDLRXHVW .ROWqV 7KH4XDUH)HOORZ %HKDQ
4XDUWHW :LOVRQ 4XpEHF 7KH4XHHQRI6SDGHV 7FKDLNRYVN\ 4XHOFKHVDSHYD0DLVLH -DPHV UDFHUDFLVP DGGUHVVHGE\/H&RPSWH ² 5DFLQH -HDQ $QGURPDTXH 3KqGUH ² 5$'$ 5R\DO$FDGHP\RI'UDPDWLF $UW UDGLRSOD\V 5DIIOHV *HUU\ 7KH5DNH·V3URJUHVV 6WUDYLQVN\ 5DPLFRYD 'XQ\D² 5DVPXVVHQ ,EHQ1DJHO² 5DVSXWLQ 3LVFDWRU 5D\PRQG %LOO 5H$UUDQJHPHQWV 2SHQ7KHDWUH UHDGLQJ DQGFRQVWUXFWLQJVFULSWV² UHDOLVP $QWRLQH·VWKHDWUH /\XELPRY·V RSSRVLWLRQWR LQ1HPLURYLFK·V WKHDWUH 6WDQLVODYVNLDQ 6WHLQ·V ERXUJHRLVWKHDWUH² 5pFDPLHUWKHDWUH 7KH5HG5HYXH 3LVFDWRU 5HJLHEXFK 5HLQKDUGW UHKHDUVDO $NDODLWLV·VWKHDWUH² ² $QWRLQH·VWKHDWUH $UPILHOG·V WKHDWUH %HFN·VUXOHV %UHFKW·V WKHDWUH 'RGLQ·VWKHDWUH *URWRZVNL·VPHWKRG /HSDJH·VZRUNLQSURJUHVV /\XELPRY·VPHWKRGV 0F%XUQH\·V SOD\VSDFH 1LQDJDZD·VDFWRU WUDLQLQJ 2SHQ7KHDWUH·V ZRUN 7DLURY·VWKHDWUH :LOVRQ·VDFWRUV /D5HLQH0DUJRW ILOP 5HLQKDUGW 0D[² UHOLJLRXVWKHDWUH &RSHDX 6FKXPDQQ 5HQDLVVDQFHWKHDWUH /D5HSXEEOLFD UHVHDUFK LQDFWRUWUDLQLQJ ² 7KH5HVLVWDEOH5LVHRI$UWXUR8L %UHFKW 5HWRXUDXGpVHUW .ROWqV 7KH5HWXUQRI2G\VVHXV :\VSLDQVNL
,1'(;
5H\QROGV 5RJHU UK\WKP ² 5LFH 7LP 5LFKDUG,, 6KDNHVSHDUH ² 5LFKDUG,,, 6KDNHVSHDUH 5LONH 5DLQHU0DULD 5LPHU - 7KRPDV 7KH5LQJRIWKH1LEHOXQJV :DJQHU ² ULWXDOWKHDWUH ² 5REHUWR=XFFR .ROWqV 7KH5RFN\+RUURU3LFWXUH6KRZ ILOP 7KH5RFN\+RUURU6KRZ 5RPHDWKHDWUH %DUFHORQD 5RPHRDQG-XOLHW 6KDNHVSHDUH 5RQFRQL /XFD² 5RUULVRQ +XJK² 5RVVLQL *LRDFFKLQR$QWRQLR 7KH5RXQGKHDGVDQGWKH3RLQWHG+HDGV %UHFKW 5RXWH 5R\DO$FDGHP\RI'UDPDWLF$UWVHH 5$'$ 5R\DO/\FHXP&RPSDQ\ 5R\DO6KDNHVSHDUH$FDGHP\&RPSDQ\ 5R\DO6KDNHVSHDUH&RPSDQ\ 56& ² 5R\DO6KRZ 1RZUD 5XELQVWHLQ $QWRQ 5XVK *HRIIUH\ 5XVVLDQ5HYROXWLRQ 5XVVLDQWKHDWUH LPSDFWRQ 'RQQHOODQ² 5XVVLD·V'D\ 3LVFDWRU 5\ODQFH 0DUN /H6DFUHGXSULQWHPSV 6W-RDQRIWKH6WRFN\DUGV %UHFKW 6W0DUN·V&KXUFKWKHDWUH 1HZ
6DQWD&URFH 9HQLFH 6DQWD8OLYD 6mR3DXOR %RDO·VDJLWSURS² 6DUDWRJD,QWHUQDWLRQDO7KHDWUH,QVWLWXWH 6DUWRUL $POHWR Q 6DUWUH -HDQ3DXO 6DYDJH/RYH &KDLNLQ 6DYDUHVH 1 6DYHG %RQG ² 6DYRQDUROD VFHQLFDUFKLWHFWXUH $NDODLWLV·VWKHDWUH &RSHDX VFHQRJUDSK\ $NDODLWLV·VDFWRUWUDLQLQJ 'RGLQ·VWKHDWUH 0F%XUQH\·VSURGXFWLRQV 6WUHKOHU·V/·,OOXVLRQ 6FKDXEKQH 6FKHFKQHU 5LFKDUG ² 6FKHPHU %DO]DF 6FKOXFNDQG-DX 6FKOXPEHUJHU -HDQ² 6FKPLGW -DFTXHV 6FK|QEHUJ $UQROG 6FKRRORI'UDPDWLF$UW 9DVLO\HY 6FKSHW *XVWDY 6FKXHWWH -DPHV 6FKXO] %UXQR 6FKXPDFKHU & 6FKXPDQQ 3HWHU² 6FKZH\NLQWKH6HFRQG:RUOG:DU %UHFKW 6FRILHOG 3DXO 7KH6FUHHQV *HQHW 7KH6HDJXOO &KHNKRY 7KH6HDVRQDW6DUVDSDULOOD :KLWH ² 6HFRQG:RUOG:DU 7KH6HFUHW$UWRIWKH3HUIRUPHU %DUEDDQG 6DYDUHVH 6HJDO +RZLH 6HOERXUQH ' 6HOODUV 3HWHU ² 6HOOLQ ( 7KH6HUSHQW &KDLNLQ 6HUUp $QGUp 6HWJD\D3XEOLF7KHDWUH 7RN\R /DVHWPDQDWUiJLFD 3DVTXDO 7KH6HYHQ6WUHDPVRIWKH5LYHU2WD /HSDJH
,1'(;
7KpkWUHGX6ROHLO 7KpkWUHGX6ROHLO 6HZHOO 6WHSKHQ VH[XDOLW\ LQ%DXVFK·VGDQFH LQ %LHLWR·VWKHDWUH LQ&KpUHDX·V ILOPV LQ'RQQHOODQ·V$V
6L[&KDUDFWHUVLQ6HDUFKRIDQ$XWKRU 3LUDQGHOOR 6ODYNLQ 9LNWRU ² 6ODY\DQVN\%D]DU PHHWLQJRI 6WDQLVODYVN\DQG1HPLURYLFK 6ORZDFNL -XOLXV] VRFLDOLVVXHV %UHFKW·VWKHDWUH² %URRN·VFRQFHUQV ² /LWWOHZRRG·V DFWLYHFRQFHUQV /\XELPRY·V SURGXFWLRQV 6HOODUV· WKHDWUH WKHDWUHRI6WUHKOHUDQG*UDVVL 9LODU·VLQLWLDWLYHV VRFLDOUHDOLVP VRFLDOLVP² 6ROHUL )HUUXFLR 6RORIRUD6WULNLQJ&ORFN =DKUDGQLN 6RQ)UqUH ILOP 6RQGKHLP 6WHSKHQ 6RQJVDQG6WRULHVIURP0RE\'LFN $QGHUVRQ 6RSKRFOHV $MD[ $QWLJRQH (OHFWUD ² 2HGLSXVDW &RORQXV 2HGLSXV5H[ VRXQG LQ%DUED·VWKHDWUH² %URRN·V SURGXFWLRQRI2UJKDVW LQ &KDLNLQ·VWKHDWUH &KpUHDX·VXVH RI /LWWOHZRRG·VH[SHULPHQWDO LGHDV² 6RXWK$XVWUDOLDQ0LQLVWU\RIWKH$UWV 6RXWK3DFLILF 6RYLHW8QLRQ VSDFH &KpUHDX·VVWDJH ² .DQWRU·V FRQFHSWV ² 0QRXFKNLQH·V FRQFHSW 6SDQLVK&LYLO:DU VSHFWDFOH &RSHDX /\XELPRY 5HLQKDUGW 5RQFRQL VSHFWDWRUVVHH DXGLHQFH 6SRNDLWH (JOH 6SROHWR)HVWLYDO 7KH6TXDUH (OLVHHYD ² VWDJHGHVLJQ $NDODLWLV·VXVHRI $UPILHOG·VWKHDWUH &RSHDX·V 9LHX[&RORPELHUWKHDWUH &UDLJ ² &UDPSKRUQ 'RGLQ·VWKHDWUH² /\XELPRY·V SURGXFWLRQV 1HNURVLXV·VWKHDWUH 5HLQKDUGW·V*KRVWV LQ 5HLQKDUGW·VWKHDWUH² UHODWLRQVKLS
,1'(;
ZLWKSHUIRUPHUV IRU6KDUPDQ·V SURGXFWLRQV 6WUHKOHU·V/·,OOXVLRQ 7DLURY·VWKHDWUH 9DVLO\HY·V WKHDWUH VWDJHFUDIW $UWDXG·VLGHDV ² %LHLWR ² /LWWOHZRRG·VH[SHULPHQWDO LGHDV² 6WDOLQ -RVHSK6WDOLQLVP DGGUHVVHG LQWKHDWUH /D6WDPSD 6WDQLVODYVN\ .RQVWDQWLQ² DQG'RGLQ 'RQQHOODQ·VFULWLTXHRI pWXGHV +DPOHW ZLWK&UDLJ LQIOXHQFH DQG 0H\HUKROG DQG1HPLURYLFK ² UHDOLVP VWDUDFWRUV 6WDUVLQWKH0RUQLQJ6N\ *DOLQ 6WDWH,QVWLWXWHIRU7KHDWUH$UWV 0RVFRZ 6WDWH7KHDWUH&RPSDQ\RI6RXWK $XVWUDOLD 6WDWH
V\QWKHWLFSURGXFWLRQ 6\UDFXVH *UHHNDPSKLWKHDWUH 7DJDQND7KHDWUHRI'UDPDDQG&RPHG\ ² 7DLURY $OH[DQGHU² /HV7DPERXUVVXUODGLJXH &L[RXV 7DQ'XQ 7DQJ;LDQ]X 7DQ]DEHQG %DXVFK 7DQ]WKHDWHU:XSSHUWDO 7DUWXIIH 0ROLqUH ² 7DVFD &DWKHULQH 7DVVR $7DVWHRI+RQH\ 'HODQH\ 7DYLDQL )HUGLQDQGR 7FKDLNRYVN\ 3HWHU,OLFK 7HDWUH/OLXUH &DWDORQLD 7HDWURDOOD6FDOD 0LODQ 7HDWURGL5RPD 7HDWUR0DUtD*XHUUHUR² 7HDWUR6WDELOHGL7RULQR 7HDWUR6WUHKOHU WHFKQRORJ\ %UHXHU·V+DMM /LWWOHZRRG·VVWDJHFUDIW² LQ 0F%XUQH\·VSURGXFWLRQV 3DVTXDO·VSURGXFWLRQV 3LVFDWRU·V SURGXFWLRQV² ² 5RQFRQL·V 2UODQGR 6HOODUV· XVHRI PXOWLPHGLD :RRVWHU*URXS 7HFWRQLF3ODWHV /HSDJH WHOHYLVLRQ XVHGLQWKHDWUH 7HOVRQ %RE² 7KH7HPSHVW 6KDNHVSHDUH ² ² 7HQ'D\VWKDW6KRRNWKH:RUOG 0LOHV$ZD\ ² 7HUPLQDO &KDLNLQ
,1'(;
7KHDWHUDP1ROOHQGRUISODW] ² 7KHDWHUGHU)UHLHQ9RONVEXKQH 7KpkWUH$OIUHG-DUU\ 7KH7KHDWUHDQGLWV'RXEOH $UWDXG 7KpkWUH$QWRLQH WKHDWUHFROOHFWLYHVVHH 0DERX0LQHV 7KHDWUHGH&RPSOLFLWH² 7KpkWUHGH6DUWURXYLOOH 7KpkWUHGHV$PDQGLHUV 1DQWHUUH ² 7KpkWUHGHV1DWLRQV 3DULV WKpkWUHG·HVVDL 7KpkWUHG·°XYUH 7KpkWUHGX6ROHLO 3DULV ² ² 7KHDWUHIRUWKH1HZ&LW\ 1HZ
7ROVWR\ /HR VHHDOVR $QQD.DUHQLQD 7RQJXHV &KDLNLQ 7RSRUNRY 9DVLO\ 7RWDO7KHDWUH 3LVFDWRU WRXULQJWKHDWUH ² 7RXULVWVDQG5HIXJHHV 2SHQ7KHDWUH 7RZDUGVD3RRU7KHDWUH *URWRZVNL ² 7KH7RZHU3URMHFW :DUQHU WUDJHG\ ² WUDJLFRPHG\ 7UDYDLOHW&XOWXUH ² 7ULHVWH 7KH7URMDQ:RPHQ 7VYHWD\HYD 0DULQD 7V\SLQ *HRUJH 7XGRU $QWKRQ\ 7XULQ 7XUQRIWKH6FUHZ %ULWWHQ 7ZHOIWK1LJKW 6KDNHVSHDUH 7ZR*HQWOHPHQRI9HURQD 6KDNHVSHDUH 7KH7Z\ERUQH$IIDLU :KLWH 7\WHOO -RKQ ¶8EHUPDULRQHWWH· 8FFHOOR 3DROR 8QDDOWUD)HGUD VLXVSODX (VSULX 8QEDODQFLQJ$FWV )RUHPDQ 8QFOH9DQ\D &KHNKRY 8QLRQGHV7KpkWUHVGHO·(XURSH 8QLWHG6WDWHVRI$PHULFD FULWLFLVHGLQ6HOODUV· WKHDWUH ² ² H[DPLQHGLQ%RJDUW·V WKHDWUH 0F%XUQH\·VFULWLTXH SURWHVWVRI%HFNDQG0DOLQD WKHXQLYHUVDO :DUQHU·VIRFXVRQ² 8QLYHUVLW\RI&DOLIRUQLD ,UYLQH 7KH8SVWDLUV7KHDWUH 8UDQLXP /LWWOHZRRG 86 %URRN ² 9DNKWDQJRY (XJHQL 9DNKWDQJRY7KHDWUH 9DON .DWH² 9DOOH,QFOiQ 5DPRQGHO 9DVLO\HY $QDWRO\ ² 9DVVD=KHOH]QRYD *RUN\ 9HJD /RSHGH /DYHUEHQDGHODSDORPD %UHWRQ ²
,1'(;
9HUGL *LXVHSSH 9HUJD *LRYDQQL 9HUKDHUHQ (PLOH 9HUPRQW² 9LDQ %RULV /DYLGDGHO5H\(GXDUGR,,GH,QJODWHUUD 3DVTXDO YLGHR 9LHWQDP'LVFRXUVH :HLVV 9LHWQDP:DU SURWHVWVDJDLQVW ² 9LHX[&RORPELHUWKHDWUH² 7KH9LNLQJVDW+HOJHODQG ,EVHQ 9LNWRU %DXVFK 9LODU -HDQ² /D9LOOHSDUMXUH &L[RXV 9LOOHJJLDWXUD WULORJ\ *ROGRQL 9LOQLXVVHH 6WDWH
:HLQVWHLQ 6WHYHQ :HLVV 3HWHU :HOOHV 2UVRQ :HOOPDQ 0DF :HVNHU $UQROG :HVW 'DUURQ/ :KDW'LG+H6HH" )RUHPDQ :KHQ:H'HDG$ZDNHQ :KLWH 3DWULFN $UPILHOG·VZRUNZLWK 6KDUPDQ·VZRUNZLWK ² ² ² :LHVHQODQG %DXVFK :LJPDQ 0DU\ :LOOLDPV 'DYLG :LOOLDPV 7HQQHVVHH :LOOLDPVRQ 'DYLG :LOVRQ 5REHUW² 7KH:LQWHU·V7DOH 6KDNHVSHDUH ² :LQWRQ 7LP &ORXGVWUHHW ² :LWNLHZLF] ,JQDF\ :ROIRUG / :RROI 9LUJLQLD :RRVWHU*URXS ² ¶ZRUNLQSURJUHVV· /HSDJH² :RUNFHQWUH 3RQWHGHUD ,WDO\ :RUNHUV· 7KHDWUH0RYHPHQW ZRUNVKRSWKHDWUH ² ² VHH DOVR DFWLQJZRUNVKRSV :R\]HFN %HUJ :ULJKW )UDQN/OR\G :\OOLH 'DQLHO :\VSLDQVNL 6WDQLVODZ²
