background image

93XY^W

DbQ^c\QdY_^BYSXQbTGY\XU\]!)% 

&KLHQ7KH&UHDWLYH

.XQ7KH5HFHSWLYH

&KXQ'LIILFXOW\DWWKH%HJLQQLQJ

0rQJ<RXWKIXO)ROO\

+V:DLWLQJ1RXULVKPHQW

6XQJ&RQIOLFW

6KLK7KH$UP\

3L+ROGLQJ7RJHWKHU>XQLRQ@

+VLDR&KX7KH7DPLQJ3RZHURIWKH6PDOO

/7UHDGLQJ>FRQGXFW@

7DL3HDFH

3L6WDQGVWLOO>6WDJQDWLRQ@

7XQJ-rQ)HOORZVKLSZLWK0HQ

7D<X3RVVHVVLRQLQ*UHDW0HDVXUH

&KLHQ0RGHVW\

<(QWKXVLDVP

6XL)ROORZLQJ

.X:RUNRQZKDWKDVEHHQVSRLOHG>'HFD\@

/LQ$SSURDFK

.XDQ&RQWHPSODWLRQ9LHZ

6KLK+R%LWLQJ7KURXJK

3L*UDFH

3R6SOLWWLQJ$SDUW

)X5HWXUQ7KH7XUQLQJ3RLQW

:X:DQJ,QQRFHQFH7KH8QH[SHFWHG

7D&KX7KH7DPLQJ3RZHURIWKH*UHDW

,&RUQHUVRIWKH0RXWK3URYLGLQJ1RXULVKPHQW

7D.XR3UHSRQGHUDQFHRIWKH*UHDW

.DQ7KH$E\VPDO:DWHU

/L7KH&OLQJLQJ)LUH

+VLHQ,QIOXHQFH:RRLQJ

+rQJ'XUDWLRQ

7815HWUHDW

7D&KXDQJ7KH3RZHURIWKH*UHDW

&KLQ3URJUHVV

0LQJ,'DUNHQLQJRIWKHOLJKW

&KLD-rQ7KH)DPLO\>7KH&ODQ@

.XHL2SSRVLWLRQ

&KLHQ2EVWUXFWLRQ

background image

+VLHK'HOLYHUDQFH

6XQ'HFUHDVH

,,QFUHDVH

.XDL%UHDNWKURXJK5HVROXWHQHVV

.RX&RPLQJWR0HHW

7VXL*DWKHULQJ7RJHWKHU>0DVVLQJ@

6KrQJ3XVKLQJ8SZDUG

.XQ2SSUHVVLRQ([KDXVWLRQ

&KLQJ7KH:HOO

.R5HYROXWLRQ0ROWLQJ

7LQJ7KH&DOGURQ

&KrQ7KH$URXVLQJ6KRFN7KXQGHU

.rQ.HHSLQJ6WLOO0RXQWDLQ

&KLHQ'HYHORSPHQW*UDGXDO3URJUHVV

.XHL0HL7KH0DUU\LQJ0DLGHQ

)rQJ$EXQGDQFH>)XOOQHVV@

/7KH:DQGHUHU

6XQ7KH*HQWOH7KH3HQHWUDWLQJ:LQG

7XL7KH-R\RXV/DNH

+XDQ'LVSHUVLRQ>'LVVROXWLRQ@

&KLHK/LPLWDWLRQ

&KXQJ)X,QQHU7UXWK

+VLDR.XR3UHSRQGHUDQFHRIWKH6PDOO

&KL&KL$IWHU&RPSOHWLRQ

:HL&KL%HIRUH&RPSOHWLRQ

&KLHQ7KH&UHDWLYH

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ&+,(17+(&5($7,9(+($9(1

7KHILUVWKH[DJUDPLVPDGHXSRIVL[XQEURNHQOLQHV7KHVHXQEURNHQOLQHV

VWDQGIRUWKHSULPDOSRZHUZKLFKLVOLJKWJLYLQJDFWLYHVWURQJDQGRIWKH

VSLULW7KHKH[DJUDPLVFRQVLVWHQWO\VWURQJLQFKDUDFWHUDQGVLQFHLWLV

ZLWKRXWZHDNQHVVLWVHVVHQFHLVSRZHURUHQHUJ\,WVLPDJHLVKHDYHQ,WV

HQHUJ\LVUHSUHVHQWHGDVXQUHVWULFWHGE\DQ\IL[HGFRQGLWLRQVLQVSDFHDQGLV

WKHUHIRUHFRQFHLYHGRIDVPRWLRQ7LPHLVUHJDUGHGDVWKHEDVLVRIWKLV

PRWLRQ7KXVWKHKH[DJUDPLQFOXGHVDOVRWKHSRZHURIWLPHDQGWKHSRZHU

RISHUVLVWLQJLQWLPHWKDWLVGXUDWLRQ

7KHSRZHUUHSUHVHQWHGE\WKHKH[DJUDPLVWREHLQWHUSUHWHGLQDGXDOVHQVH

LQWHUPVRILWVDFWLRQRQWKHXQLYHUVHDQGRILWVDFWLRQRQWKHZRUOGRIPHQ

,QUHODWLRQWRWKHXQLYHUVHWKHKH[DJUDPH[SUHVVHVWKHVWURQJFUHDWLYHDFWLRQ

RIWKH'HLW\,QUHODWLRQWRWKHKXPDQZRUOGLWGHQRWHVWKHFUHDWLYHDFWLRQRI

WKHKRO\PDQRUVDJHRIWKHUXOHURUOHDGHURIPHQZKRWKURXJKKLVSRZHU

DZDNHQVDQGGHYHORSVWKHLUKLJKHUQDWXUH

background image

7+(-8'*0(17

7+(&5($7,9(ZRUNVVXEOLPHVXFFHVV

)XUWKHULQJWKURXJKSHUVHYHUDQFH

$FFRUGLQJWRWKHRULJLQDOPHDQLQJWKHDWWULEXWHV>VXEOLPLW\SRWHQWLDOLW\RI

VXFFHVVSRZHUWRIXUWKHUSHUVHYHUDQFH@DUHSDLUHG:KHQDQLQGLYLGXDO

GUDZVWKLVRUDFOHLWPHDQVWKDWVXFFHVVZLOOFRPHWRKLPIURPWKHSULPDO

GHSWKVRIWKHXQLYHUVHDQGWKDWHYHU\WKLQJGHSHQGVXSRQKLVVHHNLQJKLV

KDSSLQHVVDQGWKDWRIRWKHUVLQRQHZD\RQO\WKDWLVE\SHUVHYHUDQFHLQZKDW

LVULJKW

7KHVSHFLILFPHDQLQJVRIWKHIRXUDWWULEXWHVEHFDPHWKHVXEMHFWRI

VSHFXODWLRQDWDQHDUO\GDWH7KH&KLQHVHZRUGKHUHUHQGHUHGE\VXEOLPH

PHDQVOLWHUDOO\KHDGRULJLQJUHDW7KLVLVZK\&RQIXFLXVVD\VLQ

H[SODLQLQJLW*UHDWLQGHHGLVWKHJHQHUDWLQJSRZHURIWKH&UHDWLYHDOOEHLQJV

RZHWKHLUEHJLQQLQJWRLW7KLVSRZHUSHUPHDWHVDOOKHDYHQ)RUWKLV

DWWULEXWHLQKHUHVLQWKHRWKHUWKUHHDVZHOO

7KHEHJLQQLQJRIDOOWKLQJVOLHVVWLOOLQWKHEH\RQGLQWKHIRUPRILGHDVWKDW

KDYH\HWWREHFRPHUHDO%XWWKH&UHDWLYHIXUWKHUPRUHKDVSRZHUWROHQG

IRUPWRWKHVHDUFKHW\SHVRILGHDV7KLVLVLQGLFDWHGLQWKHZRUGVXFFHVVDQG

WKHSURFHVVLVUHSUHVHQWHGE\DQLPDJHIURPQDWXUH7KHFORXGVSDVVDQGWKH

UDLQGRHVLWVZRUNDQGDOOLQGLYLGXDOEHLQJVIORZLQWRWKHLUIRUPV

$SSOLHVWRWKHKXPDQZRUOGWKHVHDWWULEXWHVVKRZWKHJUHDWPDQWKHZD\WR

QRWDEOHVXFFHVV%HFDXVHKHVHHVZLWKJUHDWFODULW\DQGFDXVHDQGHIIHFWVKH

FRPSOHWHVWKHVL[VWHSVDWWKHULJKWWLPHDQGPRXQWVWRZDUGKHDYHQRQWKHP

DWWKHULJKWWLPHDVWKRXJKRQVLFGUDJRQV7KHVL[VWHSVDUHWKHVL[GLIIHUHQW

SRVLWLRQVJLYHQLQWKHKH[DJUDPZKLFKDUHUHSUHVHQWHGODWHUE\WKHGUDJRQ

V\PERO+HUHLWLVVKRZQWKDWWKHZD\WRVXFFHVVOLHVLQDSSUHKHQGLQJDQG

JLYLQJDFWXDOLW\WRWKHZD\RIWKHXQLYHUVH>7DR@ZKLFKDVDODZUXQQLQJ

WKURXJKHQGDQGEHJLQQLQJEULQJVDERXWDOOSKHQRPHQDLQWLPH7KXVHDFK

VWHSDWWDLQHGIRUWKZLWKEHFRPHVDSUHSDUDWLRQIRUWKHQH[W7LPHLVQRORQJHU

DKLQGUDQFHEXWWKHPHDQVRIPDNLQJDFWXDOZKDWLVSRWHQWLDO

7KHDFWRIFUHDWLRQKDYLQJIRXQGH[SUHVVLRQLQWKHWZRDWWULEXWHVVXEOLPLW\

DQGVXFFHVVWKHZRUNRIFRQVHUYDWLRQLVVKRZQWREHDFRQWLQXRXV

DFWXDOL]DWLRQDQGGLIIHUHQWLDWLRQRIIRUP7KLVLVH[SUHVVHGLQWKHWZRWHUPV

IXUWKHULQJOLWHUDOO\FUHDWLQJWKDWZKLFKDFFRUGVZLWKWKHQDWXUHRID

JLYHQEHLQJDQGSHUVHYHULQJOLWHUDOO\FRUUHFWDQGILUP7KHFRXUVHRI

WKH&UHDWLYHDOWHUVDQGVKDSHVEHLQJVXQWLOHDFKDWWDLQVLWVWUXHVSHFLILF

QDWXUHWKHQLWNHHSVWKHPLQFRQIRUPLW\ZLWKWKH*UHDW+DUPRQ\7KXV

GRHVLWVKRZLWVHOIWRIXUWKHUWKURXJKSHUVHYHUDQFH

,QUHODWLRQWRWKHKXPDQVSKHUHWKLVVKRZVKRZWKHJUHDWPDQEULQJVSHDFH

DQGVHFXULW\WRWKHZRUOGWKURXJKKLVDFWLYLW\LQFUHDWLQJRUGHU+HWRZHUV

KLJKDERYHWKHPXOWLWXGHRIEHLQJVDQGDOOODQGVDUHXQLWHGLQSHDFH

$QRWKHUOLQHRIVSHFXODWLRQJRHVVWLOOIXUWKHULQVHSDUDWLQJWKHZRUGV

VXEOLPHVXFFHVVIXUWKHULQJSHUVHYHUDQFHDQGSDUDOOHOVWKHPZLWK

WKHIRXUFDUGLQDOYLUWXHVLQKXPDQLW\7RVXEOLPLW\ZKLFKDVWKH

IXQGDPHQWDOSULQFLSOHHPEUDFHVDOOWKHRWKHUDWWULEXWHVLWOLQNVORYH7RWKH

DWWULEXWHVXFFHVVDUHOLQNHGWKHPRUDOVZKLFKUHJXODWHDQGRUJDQL]H

background image

H[SUHVVLRQVRIORYHDQGWKHUHE\PDNHWKHPVXFFHVVIXO7KHDWWULEXWH

IXUWKHULQJLVFRUUHODWHGZLWKMXVWLFHZKLFKFUHDWHVWKHFRQGLWLRQVLQZKLFK

HDFKUHFHLYHVWKDWZKLFKDFFRUGVZLWKKLVEHLQJWKDWZKLFKLVGXHKLPDQG

ZKLFKFRQVWLWXWHVKLVKDSSLQHVV7KHDWWULEXWHSHUVHYHUDQFHLVFRUUHODWHG

ZLWKZLVGRPZKLFKGLVFHUQVWKHLPPXWDEOHODZVRIDOOWKDWKDSSHQVDQGFDQ

WKHUHIRUHEULQJDERXWHQGXULQJFRQGLWLRQV7KHVHVSHFXODWLRQVDOUHDG\

EURDFKHGLQWKHFRPPHQWDU\FDOOHG:rQ<HQODWHUIRUPHGWKHEULGJH

FRQQHFWLQJWKHSKLORVRSK\RIWKHILYHVWDJHVHOHPHQWVRIFKDQJHDVODLG

GRZQLQWKH%RRNRI+LVWRU\6KX&KLQJZLWKWKHSKLORVRSK\RIWKH%RRNRI

&KDQJHVZKLFKLVEDVHGVROHO\RQWKHSRODULW\RISRVLWLYHDQGQHJDWLYH

SULQFLSOHV,QWKHFRXUVHRIWLPHWKLVFRPELQDWLRQRIWKHWZRV\VWHPVRI

WKRXJKWRSHQHGWKHZD\IRUDQLQFUHDVLQJO\LQWULFDWHQXPEHUV\PEROLVP

7+(,0$*(

7KHPRYHPHQWRIKHDYHQLVIXOORISRZHU

7KXVWKHVXSHULRUPDQPDNHVKLPVHOIVWURQJDQG

XQWLULQJ

6LQFHWKHUHLVRQO\RQHKHDYHQWKHGRXEOLQJRIWKHWULJUDP&KLHQRIZKLFK

KHDYHQLVWKHLPDJHLQGLFDWHVWKHPRYHPHQWRIKHDYHQ2QHFRPSOHWH

UHYROXWLRQRIKHDYHQPDNHVDGD\DQGWKHUHSHWLWLRQRIWKHWULJUDPPHDQV

WKDWHDFKGD\LVIROORZHGE\DQRWKHU7KLVFUHDWHVWKHLGHDRIWLPH6LQFHLWLV

WKHVDPHKHDYHQPRYLQJZLWKXQWLULQJSRZHUWKHUHLVDOVRFUHDWHGWKHLGHD

RIGXUDWLRQERWKLQDQGEH\RQGWLPHDPRYHPHQWWKDWQHYHUVWRSVQRU

VODFNHQVMXVWDVRQHGD\IROORZVDQRWKHULQDQXQHQGLQJFRXUVH7KLV

GXUDWLRQLQWLPHLVWKHLPDJHRIWKHSRZHULQKHUHQWLQWKH&UHDWLYH

:LWKWKLVLPDJHDVDPRGHOWKHVDJHOHDUQVKRZEHVWWRGHYHORSKLPVHOIVR

WKDWKLVLQIOXHQFHPD\HQGXUH+HPXVWPDNHKLPVHOIVWURQJLQHYHU\ZD\

E\FRQVFLRXVO\FDVWLQJRXWDOOWKDWLVLQIHULRUDQGGHJUDGLQJ7KXVKHDWWDLQV

WKDWWLUHOHVVQHVVZKLFKGHSHQGVXSRQFRQVFLRXVO\OLPLWLQJWKHILHOGVRIKLV

DFWLYLW\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

+LGGHQGUDJRQ'RQRWDFW

,Q&KLQDWKHGUDJRQKDVDPHDQLQJDOWRJHWKHUGLIIHUHQWIURPWKDWJLYHQLWLQ

WKH:HVWHUQZRUOG7KHGUDJRQLVDV\PERORIWKHHOHFWULFDOO\FKDUJHG

G\QDPLFDURXVLQJIRUFHWKDWPDQLIHVWVLWVHOILQWKHWKXQGHUVWRUP,QZLQWHU

WKLVHQHUJ\ZLWKGUDZVLQWRWKHHDUWKLQWKHHDUO\VXPPHULWEHFRPHVDFWLYH

DJDLQDSSHDULQJLQWKHVN\DVWKXQGHUDQGOLJKWQLQJ$VDUHVXOWWKHFUHDWLYH

IRUFHVRQHDUWKEHJLQWRVWLUDJDLQ

+HUHWKLVFUHDWLYHIRUFHLVVWLOOKLGGHQEHQHDWKWKHHDUWKDQGWKHUHIRUHKDV

QRHIIHFW,QWHUPVRIKXPDQDIIDLUVWKLVV\PEROL]HVDJUHDWPDQZKRLVVWLOO

XQUHFRJQL]HG1RQHWKHOHVVKHUHPDLQVWUXHWRKLPVHOI+HGRHVQRWDOORZ

KLPVHOIWREHLQIOXHQFHGE\RXWZDUGVXFFHVVRUIDLOXUHEXWFRQILGHQWLQKLV

background image

VWUHQJWKKHELGHVKLVWLPH+HQFHLWLVZLVHIRUWKHPDQZKRFRQVXOWVWKH

RUDFOHDQGGUDZVWKLVOLQHWRZDLWLQWKHFDOPVWUHQJWKRISDWLHQFH7KHWLPH

ZLOOIXOILOOLWVHOI2QHQHHGQRWIHDUOHDVWVWURQJZLOOVKRXOGQRWSUHYDLOWKH

PDLQWKLQJLVQRWWRH[SHQGRQHVSRZHUVSUHPDWXUHO\LQDQDWWHPSWWRREWDLQ

E\IRUFHVRPHWKLQJIRUZKLFKWKHWLPHLVQRW\HWULSH

1LQHLQWKHVHFRQGSODFHPHDQV

'UDJRQDSSHDULQJLQWKHILHOG

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

+HUHWKHHIIHFWVRIWKHOLJKWJLYLQJSRZHUEHJLQWRPDQLIHVWWKHPVHOYHV,Q

WHUPVRIKXPDQDIIDLUVWKLVPHDQVWKDWWKHJUHDWPDQPDNHVKLVDSSHDUDQFH

LQKLVFKRVHQILHOGRIDFWLYLW\$V\HWKHKDVQRFRPPDQGLQJSRVLWLRQEXWLV

VWLOOZLWKKLVSHHUV+RZHYHUZKDWGLVWLQJXLVKHVKLPIRUPWKHRWKHUVLVKLV

VHULRXVQHVVRISXUSRVHKLVXQTXDOLILHGUHOLDELOLW\DQGWKHLQIOXHQFHKHH[HUWV

RQKLVHQYLURQPHQWZLWKRXWFRQVFLRXVHIIRUW6XFKDPDQLVGHVWLQHGWR

JDLQJUHDWLQIOXHQFHDQGWRVHWWKHZRUOGLQRUGHU7KHUHIRUHLWLVIDYRUDEOHWR

VHHKLP

1LQHLQWKHWKLUGSODFHPHDQV

$OOGD\ORQJWKHVXSHULRUPDQLVFUHDWLYHO\DFWLYH

$WQLJKWIDOOKLVPLQGLVVWLOOEHVHWZLWKFDUHV

'DQJHU1REODPH

$VSKHUHRILQIOXHQFHRSHQVXSIRUWKHJUHDWPDQ+LVIDPHEHJLQVWRVSUHDG

7KHPDVVHVIORFNWRKLP+LVLQQHUSRZHULVDGHTXDWHWRWKHLQFUHDVHGRXWHU

DFWLYLW\7KHUHDUHDOOVRUWVRIWKLQJVWREHGRQHDQGZKHQRWKHUVDUHDWUHVW

LQ

WKHHYHQLQJSODQVDQGDQ[LHWLHVSUHVVLQXSRQKLP%XWGDQJHUOXUNVKHUHDW

WKHSODFHRIWUDQVLWLRQIURPORZOLQHVVWRWKHKHLJKWV0DQ\DJUHDWPDQKDV

EHHQUXLQHGEHFDXVHWKHPDVVHVIORFNHGWRKLPDQGVZHSWKLPLQWRWKHLU

FRXUVH$PELWLRQKDVGHVWUR\HGKLVLQWHJULW\+RZHYHUWUXHJUHDWQHVVLVQRW

LPSDLUHGE\WHPSWDWLRQV+HZKRUHPDLQVLQWRXFKZLWKWKHWLPHWKDWLV

GDZQLQJDQGZLWKLWVGHPDQGVLVSUXGHQWHQRXJKWRDYRLGDOOSLWIDOOVDQG

UHPDLQVEODPHOHVV

1LQHLQWKHIRXUWKSODFHPHDQV

:DYHULQJIOLJKWRYHUWKHGHSWKV

1REODPH

$SODFHRIWUDQVLWLRQKDVEHHQUHDFKHGDQGIUHHFKRLFHFDQHQWHULQ$

WZRIROGSRVVLELOLW\LVSUHVHQWHGWRWKHJUHDWPDQKHFDQVRDUWRWKHKHLJKWV

DQGSOD\DQLPSRUWDQWSDUWLQWKHZRUOGRUKHFDQZLWKGUDZLQWRVROLWXGH

DQGGHYHORSKLPVHOI+HFDQJRWKHZD\RIWKHKHURRUWKDWRIWKHKRO\VDJH

ZKRVHHNVVHFOXVLRQ7KHUHLVQRJHQHUDOODZRIKLVEHLQJ,IWKHLQGLYLGXDO

DFWVFRQVLVWHQWO\DQGLVWUXHWRKLPVHOIKHZLOOILQGWKHZD\WKDWLVDSSURSULDWH

IRUKLP7KLVZD\LVULJKWIRUKLPDQGZLWKRXWEODPH

background image

ƒ1LQHLQWKHILIWKSODFHPHDQV

)O\LQJGUDJRQLQWKHKHDYHQV

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

+HUHWKHJUHDWPDQKDVDWWDLQHGWKHVSKHUHRIWKHKHDYHQO\EHLQJV+LV

LQIOXHQFHVSUHDGVDQGEHFRPHVYLVLEOHWKURXJKRXWWKHZKROHZRUOG

(YHU\RQHZKRVHHVKLPPD\FRXQWKLPVHOIEOHVVHG&RQIXFLXVVD\VDERXWWKLV

OLQH

7KLQJVWKDWDFFRUGLQWRQHYLEUDWHWRJHWKHU7KLQJVWKDWKDYHDIILQLW\LQWKHLU

LQPRVWQDWXUHVVHHNRQHDQRWKHU:DWHUIORZVWRZKDWLVZHWILUHWXUQVWR

ZKDWLVGU\&ORXGVWKHEUHDWKRIKHDYHQIROORZWKHGUDJRQZLQGWKH

EUHDWK

RIHDUWKIROORZVWKHWLJHU7KXVWKHVDJHDULVHVDQGDOOFUHDWXUHVIROORZKLP

ZLWKWKHLUH\HV:KDWLVERUQRIKHDYHQIHHOVUHODWHGWRZKDWLVDERYH:KDW

LVERUQRIHDUWKIHHOVUHODWHGWRZKDWLVEHORZ(DFKIROORZVLWVNLQG

1LQHDWWKHWRSPHDQV

$UURJDQWGUDJRQZLOOKDYHFDXVHWRUHSHQW

:KHQDPDQVHHNVWRFOLPEVRKLJKWKDWKHORVHVWRXFKZLWKWKHUHVWRI

PDQNLQGKHEHFRPHVLVRODWHGDQGWKLVQHFHVVDULO\OHDGVWRIDLOXUH7KLVOLQH

ZDUQVDJDLQVWWLWDQLFDVSLUDWLRQVWKDWH[FHHGRQHVSRZHU$SUHFLSLWRXVIDOO

ZRXOGIROORZ

:KHQDOOWKHOLQHVDUHQLQHVLWPHDQV

7KHUHDSSHDUVDIOLJKWRIGUDJRQVZLWKRXWKHDGV

*RRGIRUWXQH

:KHQDOOWKHOLQHVDUHQLQHVLWPHDQVWKDWWKHZKROHKH[DJUDPLVLQPRWLRQ

DQGFKDQJHVLQWRWKHKH[DJUDP.XQ7+(5(&(37,9(ZKRVHFKDUDFWHULV

GHYRWLRQ7KHVWUHQJWKRIWKH&UHDWLYHDQGWKHPLOGQHVVRIWKH5HFHSWLYH

XQLWH6WUHQJWKLVLQGLFDWHGE\WKHIOLJKWRIGUDJRQVPLOGQHVVE\WKHIDFWWKDW

WKHLUKHDGVDUHKLGGHQ7KLVPHDQVWKDWPLOGQHVVLQDFWLRQMRLQHGWRVWUHQJWK

RIGHFLVLRQEULQJVJRRGIRUWXQH

LQGH[

.XQ7KH5HFHSWLYH

DERYH.817+(5(&(37,9(($57+

EHORZ.817+(5(&(37,9(($57+

7KLVKH[DJUDPLVPDGHXSRIEURNHQOLQHVRQO\7KHEURNHQOLQHVUHSUHVHQWV

background image

WKHGDUN\LHOGLQJUHFHSWLYHSULPDOSRZHURI\LQ7KHDWWULEXWHRIWKH

KH[DJUDPLVGHYRWLRQLWVLPDJHLVWKHHDUWK,WLVWKHSHUIHFWFRPSOHPHQWRI

7+(&5($7,9(WKHFRPSOHPHQWQRWWKHRSSRVLWHIRUWKH5HFHSWLYHGRHV

QRWFRPEDWWKH&UHDWLYHEXWFRPSOHWHVLW,WUHSUHVHQWVQDWXUHLQFRQWUDVWWR

VSLULWHDUWKLQFRQWUDVWWRKHDYHQVSDFHDVDJDLQVWWLPHWKHIHPDOHPDWHUQDO

DVDJDLQVWWKHPDOHSDWHUQDO+RZHYHUDVDSSOLHGWRKXPDQDIIDLUVWKH

SULQFLSOHRIWKLVFRPSOHPHQWDU\UHODWLRQVKLSLVIRXQGQRWRQO\LQWKHUHODWLRQ

EHWZHHQPDQDQGZRPDQEXWDOVRLQWKDWEHWZHHQSULQFHDQGPLQLVWHUDQG

EHWZHHQIDWKHUDQGVRQ,QGHHGHYHQLQWKHLQGLYLGXDOWKLVGXDOLW\DSSHDUV

LQWKHFRH[LVWHQFHRIWKHVSLULWXDOZRUOGDQGWKHZRUOGRIWKHVHQVHV

%XWVWULFWO\VSHDNLQJWKHUHLVQRUHDOGXDOLVPKHUHEHFDXVHWKHUHLVDFOHDUO\

GHILQHGKLHUDUFKLFUHODWLRQVKLSEHWZHHQWKHWZRSULQFLSOHV,QLWVHOIRIFRXUVH

WKH5HFHSWLYHLVMXVWDVLPSRUWDQWDVWKH&UHDWLYHEXWWKHDWWULEXWHRI

GHYRWLRQGHILQHVWKHSODFHRFFXSLHGE\WKLVSULPDOSRZHULQUHODWLRQWRWKH

&UHDWLYH)RUWKH5HFHSWLYHPXVWEHDFWLYDWHGDQGOHGE\WKH&UHDWLYHWKHQLW

LVSURGXFWLYHRIJRRG2QO\ZKHQLWDEDQGRQVWKLVSRVLWLRQDQGWULHVWRVWDQG

DVDQHTXDOVLGHE\VLGHZLWKWKH&UHDWLYHGRHVLWEHFRPHHYLO7KHUHVXOW

WKHQLVRSSRVLWLRQWRDQGVWUXJJOHDJDLQVWWKH&UHDWLYHZKLFKLVSURGXFWLYHRI

HYLOWRERWK

7+(-8'*0(17

7+(5(&(37,9(EULQJVDERXWVXEOLPHVXFFHVV

)XUWKHULQJWKURXJKWKHSHUVHYHUDQFHRIDPDUH

,IWKHVXSHULRUPDQXQGHUWDNHVVRPHWKLQJDQGWULHVWROHDG

+HJRHVDVWUD\

%XWLIKHIROORZVKHILQGVJXLGDQFH

,WLVIDYRUDEOHWRILQGIULHQGVLQWKHZHVWDQGVRXWK

7RIRUHJRIULHQGVLQWKHHDVWDQGQRUWK

4XLHWSHUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHIRXUIXQGDPHQWDODVSHFWVRIWKH&UHDWLYHVXEOLPHVXFFHVVIXUWKHULQJ

WKURXJKSHUVHYHUDQFHDUHDOVRDWWULEXWHGWRWKH5HFHSWLYH+HUHKRZHYHU

WKHSHUVHYHUDQFHLVPRUHFORVHO\GHILQHGLWLVWKDWRIDPDUH7KH5HFHSWLYH

FRQQRWHVVSDWLDOUHDOLW\LQFRQWUDVWWRWKHVSLULWXDOSRWHQWLDOLW\RIWKH&UHDWLYH

7KHSRWHQWLDOEHFRPHVUHDODQGWKHVSLULWXDOEHFRPHVVSDWLDOWKURXJKD

VSHFLILFDOO\TXDOLI\LQJGHILQLWLRQ7KXVWKHTXDOLILFDWLRQRIDPDUHLVKHUH

DGGHGWRWKHLGHDRISHUVHYHUDQFH7KHKRUVHEHORQJVWRHDUWKMXVWDVWKH

GUDJRQEHORQJVWRKHDYHQ,WVWLUHOHVVURDPLQJRYHUWKHSODLQVLVWDNHQDVD

V\PERORIWKHYDVWH[SDQVHRIWKHHDUWK7KLVLVWKHV\PEROFKRVHQEHFDXVH

WKHPDUHFRPELQHVWKHVWUHQJWKDQGVZLIWQHVVRIWKHKRUVHZLWKWKH

JHQWOHQHVVDQGGHYRWLRQRIWKHFRZ

2QO\EHFDXVHQDWXUHLQLWVP\ULDGIRUPVFRUUHVSRQGVZLWKWKHP\ULDG

LPSXOVHVRIWKH&UHDWLYHFDQLWPDNHWKHVHLPSXOVHVUHDO1DWXUHVULFKQHVV

OLHVLQLWVSRZHUWRQRXULVKDOOOLYLQJWKLQJVLWVJUHDWQHVVOLHVLQLWVSRZHUWR

JLYHWKHQEHDXW\DQGVSOHQGRU7KXVLWSURVSHUVDOOWKDWOLYHV,7LVWKH

&UHDWLYHWKDWEHJHWVWKLQJVEXWWKH\DUHEURXJKWWRELUWKE\WKH5HFHSWLYH

$SSOLHGWRKXPDQDIIDLUVWKHUHIRUHZKDWWKHKH[DJUDPLQGLFDWHGLVDFWLRQLQ

background image

FRQIRUPLW\ZLWKWKHVLWXDWLRQ7KHSHUVRQLQTXHVWLRQVQRWLQDQ

LQGHSHQGHQWSRVLWLRQEXWLVDFWLQJDVDQDVVLVWDQW7KLVPHDQVWKDWKHPXVW

DFKLHYHVRPHWKLQJ,WLVQRWKLVWDVNWRWU\WROHDGWKDWZRXOGRQO\PDNHKLP

ORVHWKHZD\EXWWROHWKLPVHOIEHOHG,IKHNQRZVKRZWRPHHWIDWHZLWKDQ

DWWLWXGHRIDFFHSWDQFHKHLVVXUHWRILQGWKHULJKWJXLGDQFH7KHVXSHULRUPDQ

OHWVKLPVHOIEHJXLGHGKHGRHVQRWJRDKHDGEOLQGO\EXWOHDUQVIURPWKH

VLWXDWLRQZKDWLVGHPDQGHGRIKLPDQGWKHQIROORZVWKLVLQWLPDWLRQIURP

IDWH

6LQFHWKHUHLVVRPHWKLQJWREHDFFRPSOLVKHGZHQHHGIULHQGVDQGKHOSHUVLQ

WKHKRXURIWRLODQGHIIRUWRQFHWKHLGHDVWREHUHDOL]HGDUHILUPO\VHW7KH

WLPHRIWRLODQGHIIRUWLVLQGLFDWHGE\WKHZHVWDQGVRXWKIRUZHVWDQGVRXWK

V\PEROL]HWKHSODFHZKHUHWKH5HFHSWLYHZRUNVIRUWKH&UHDWLYHDVQDWXUH

GRHVLQVXPPHUDQGDXWXPQ,ILQWKDWVLWXDWLRQRQHGRHVQRWPRELOL]HDOO

RQHVSRZHUVWKHZRUNWREHDFFRPSOLVKHGZLOOQRWEHGRQH+HQFHWRILQG

IULHQGVWKHUHPHDQVWRILQGJXLGDQFH%XWLQDGGLWLRQWRWKHWLPHRIWRLODQG

HIIRUWWKHUHLVDOVRDWLPHRISODQQLQJDQGIRUWKLVZHQHHGWKLVVROLWXGH7KH

HDVWV\PEROL]HGWKHSODFHZKHUHDPDQUHFHLYHVRUGHUVIURPKLVPDVWHUDQG

WKHQRUWKWKHSODFHZKHUHKHUHSRUWVRQZKDWKHKDVGRQH$WWKDWWLPHKH

PXVWEHDORQHDQGREMHFWLYH,QWKLVVDFUHGKRXUKHPXVWGRZLWKRXW

FRPSDQLRQV6RWKDWWKHSXULW\RIWKHPRPHQWPD\QRWEHVSRLOHGE\ILFWLRQDO

KDWHVDQGIDYRULWLVP

7+(,0$*(

7KHHDUWKVFRQGLWLRQLVUHFHSWLYHGHYRWLRQ

7KXVWKHVXSHULRUPDQZKRKDVEUHDGWKRIFKDUDFWHU

&DUULHVWKHRXWHUZRUOG

-XVWDVWKHUHLVRQO\RQHKHDYHQVRWRRWKHUHLVRQO\RQHHDUWK,QWKH

KH[DJUDPRIKHDYHQWKHGRXEOLQJRIWKHWULJUDPLPSOLHVGXUDWLRQLQWLPH

EXWLQWKHKH[DJUDPRIHDUWKWKHGRXEOLQJFRQQRWHVWKHVROLGLW\DQGH[WHQVLRQ

LQVSDFHE\YLUWXHRIZKLFKWKHHDUWKLVDEOHWRFDUU\DQGSUHVHUYHDOOWKLQJV

WKDWOLYHDQGPRYHXSRQLW7KHHDUWKLQLWVGHYRWLRQFDUULHVDOOWKLQJVJRRG

DQGHYLOZLWKRXWH[FHSWLRQ,QWKHVDPHZD\WKHVXSHULRUPDQJLYHVWRKLV

FKDUDFWHUEUHDGWKSXULW\DQGVXVWDLQLQJSRZHUVRWKDWKHLVDEOHERWKWR

VXSSRUWDQGWREHDUZLWKSHRSOHDQGWKLQJV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

:KHQWKHUHLVKRDUIURVWXQGHUIRRW

6ROLGLFHLVQRWIDURII

-XVWDVWKHOLJKWJLYLQJSRZHUUHSUHVHQWVOLIHVRWKHGDUNSRZHUWKHVKDGRZ\

UHSUHVHQWVGHDWK:KHQWKHILUVWKRDUIURVWFRPHVLQWKHDXWXPQWKHSRZHU

RIGDUNQHVVDQGFROGLVMXVWDWLWVEHJLQQLQJ$IWHUWKHVHILUVWZDUQLQJVVLJQV

RIGHDWKZLOOJUDGXDOO\PXOWLSO\XQWLOLQREHGLHQFHWRLPPXWDEOHODZVVWDUN

ZLQWHUZLWKLWVLFHLVKHUH

background image

,QOLIHLWLVWKHVDPH$IWHUFHUWDLQVFDUFHO\QRWLFHDEOHVLJQVRIGHFD\KDYH

DSSHDUHGWKH\JRRQLQFUHDVLQJXQWLOILQDOGLVVROXWLRQFRPHV%XWLQOLIH

SUHFDXWLRQVFDQEHWDNHQE\KHHGLQJWKHILUVWVLJQVRIGHFD\DQGFKHFNLQJ

WKHP

LQWLPH

ƒ6L[LQWKHVHFRQGSODFHPHDQV

6WUDLJKWVTXDUHJUHDW

:LWKRXWSXUSRVH

<HWQRWKLQJUHPDLQVXQIXUWKHUHG

7KHV\PERORIKHDYHQLVWKHFLUFOHDQGWKDWRIHDUWKLVWKHVTXDUH7KXV

VTXDUHQHVVLVDSULPDU\TXDOLW\RIWKHHDUWK2QWKHRWKHUKDQGPRYHPHQW

LQDVWUDLJKWOLQHDVZHOODVPDJQLWXGHLVDSULPDU\TXDOLW\RIWKH&UHDWLYH

%XWDOOVTXDUHWKLQJVKDYHWKHLURULJLQLQDVWUDLJKWOLQHDQGLQWRWXUQIRUP

VROLGERGLHV,QPDWKHPDWLFVZKHQZHGLVFULPLQDWHEHWZHHQOLQHVSODQHV

DQGVROLGVZHILQGWKDWUHFWDQJXODUSODQHVUHVXOWIURPVWUDLJKWOLQHVDQG

FXELFPDJQLWXGHVIURPUHFWDQJXODUSODQHV7KH5HFHSWLYHDFFRPPRGDWHV

LWVHOIWRWKHTXDOLWLHVRIWKH&UHDWLYHDQGPDNHVWKHPLWVRZQ7KXVDVTXDUH

GHYHORSVRXWRIDVWUDLJKWOLQHDQGDFXEHRXWRIDVTXDUH7KLVLVFRPSOLDQFH

ZLWKWKHODZVRIWKH&UHDWLYHQRWKLQJLVWDNHQDZD\QRWKLQJDGGHG

7KHUHIRUHWKH5HFHSWLYHKDVQRQHHGRIDVSHFLDOSXUSRVHRILWVRZQQRURI

DQ\HIIRUW\HWHYHU\WKLQJWXUQVRXWDVLWVKRXOG

1DWXUHFUHDWHVDOOEHLQJVZLWKRXWHUULQJWKLVLVLWVIRXUVTXDUHQHVV,W

WROHUDWHVDOOFUHDWXUHVHTXDOO\WKLVLVLWVJUHDWQHVV7KHUHIRUHLWDWWDLQVZKDW

LV

ULJKWIRUDOOZLWKRXWDUWLILFHRUVSHFLDOLQWHQWLRQV0DQDFKLHYHVWKHKHLJKWRI

ZLVGRPZKHQDOOWKDWKHGRHVLVDVVHOIHYLGHQWDVZKDWQDWXUHGRHV

6L[LQWKHWKLUGSODFHPHDQV

+LGGHQOLQHV

2QHLVDEOHWRUHPDLQSHUVHYHULQJ

,IE\FKDQFH\RXDUHLQWKHVHUYLFHRIDNLQJ

6HHNQRWZRUNVEXWEULQJWRFRPSOHWLRQ

,IDPDQLVIUHHRIYDQLW\KHLVDEOHWRFRQFHDOKLVDELOLWLHVDQGNHHSWKHPIURP

DWWUDFWLQJDWWHQWLRQWRRVRRQWKXVKHFDQPDWXUHXQGLVWXUEHG,IFRQGLWLRQV

GHPDQGLWKHFDQDOVRHQWHUSXEOLFOLIHEXWWKDWWRRKHGRHVZLWKUHVWUDLQW

7KHZLVHPDQJODGO\OHDYHVIDPHWRRWKHUV+HGRHVQRWVHHNWRKDYHFUHGLWHG

WRKLPVHOIWKLQJVWKDWVWDQGDFFRPSOLVKHGEXWKRSHVWRUHOHDVHDFWLYHIRUFHV

WKDWLVKHFRPSOHWHVKLVZRUNVLQVXFKDPDQQHUWKDWWKH\PD\EHDUIUXLWIRU

WKHIXWXUH

6L[LQWKHIRXUWKSODFHPHDQV

$WLHGXSVDFN1REODPHQRSUDLVH

7KHGDUNHOHPHQWRSHQVZKHQLWPRYHVDQGFORVHVZKHQDWUHVW7KHVWULFWHVW

background image

UHWLFHQFHLVLQGLFDWHGKHUH7KHWLPHLVGDQJHURXVEHFDXVHDQ\GHJUHHRI

SURPLQHQFHOHDGVHLWKHUWRWKHHQPLW\RILUUHVLVWLEOHDQWDJRQLVWVLIRQH

FKDOOHQJHVWKHPRUWRPLVFRQFHLYHGUHFRJQLWLRQLIRQHLVFRPSODLVDQW

7KHUHIRUHDPDQRXJKWWRPDLQWDLQUHVHUYHEHLWLQVROLWXGHRULQWKHWXUPRLO

RIWKHZRUOGIRUWKHUHWRRKHFDQKLGHKLPVHOIVRZHOOWKDWQRRQHNQRZV

KLP

6L[LQWKHILIWKSODFHPHDQV

$\HOORZORZHUJDUPHQWEULQJVVXSUHPHJRRGIRUWXQH

<HOORZLVWKHFRORURIWKHHDUWKDQGRIWKHPLGGOHLWLVWKHV\PERORIWKDW

ZKLFKLVUHOLDEOHDQGJHQXLQH7KHORZHUJDUPHQWLVLQFRQVSLFXRXVO\

GHFRUDWHGWKHV\PERORIDULVWRFUDWLFUHVHUYH:KHQDQ\RQHLVFDOOHGXSRQWR

ZRUNLQDSURPLQHQWEXWQRWLQGHSHQGHQWSRVLWLRQWUXHVXFFHVVGHSHQGVRQ

WKHXWPRVWGLVFUHWLRQ$PDQVJHQXLQHQHVVDQGUHILQHPHQWVKRXOGQRW

UHYHDOWKHPVHOYHVGLUHFWO\WKH\VKRXOGH[SUHVVWKHPVHOYHVRQO\LQGLUHFWO\DV

DQHIIHFWIURPZLWKLQ

6L[DWWKHWRSPHDQV

'UDJRQVILJKWLQWKHPHDGRZ

7KHLUEORRGLVEODFNDQG\HOORZ

,QWKHWRSSODFHWKHGDUNHOHPHQWVKRXOG\LHOGWRWKHOLJKW,ILWDWWHPSWVWR

PDLQWDLQDSRVLWLRQWRZKLFKLWLVQRWHQWLWOHGDQGWRUXOHLQVWHDGRIVHUYLQJ

LWGUDZVGRZQXSRQLWVHOIWKHDQJHURIWKHVWURQJ$VWUXJJOHHQVXHVLQZKLFK

LWLVRYHUWKURZQZLWKLQMXU\KRZHYHUWRERWKVLGHV7KHGUDJRQV\PERORI

KHDYHQFRPHVWRILJKWWKHIDOVHGUDJRQWKDWV\PEROL]HGWKHLQIODWLRQRIWKH

HDUWKSULQFLSOH0LGQLJKWEOXHLVWKHFRORURIKHDYHQ\HOORZLVWKHFRORURI

HDUWK7KHUHIRUHZKHQEODFNDQG\HOORZEORRGIORZLWLVDVLJQWKDWLQWKLV

XQQDWXUDOFRQWHVWERWKSULPDOSRZHUVVXIIHULQMXU\

:KHQDOOWKHOLQHVDUHVL[HVLWPHDQV

/DVWLQJSHUVHYHUDQFHIXUWKHUV

:KHQQRWKLQJEXWVL[HVDSSHDUVWKHKH[DJUDPRI7+(5(&(37,9(FKDQJHV

LQWRWKHKH[DJUDPRI7+(&5($7,9(%\KROGLQJIDVWWRZKDWLVULJKWLW

JDLQVWKHSRZHURIHQGXULQJ7KHUHLVLQGHHGQRDGYDQFHEXWQHLWKHULVWKHUH

UHWURJUHVVLRQ

LQGH[

&KXQ'LIILFXOW\DWWKH%HJLQQLQJ

DERYH.$17+($%<60$/:$7(5

EHORZ&+r17+($5286,1*7+81'(5

background image

7KHQDPHRIWKHKH[DJUDP&KXQUHDOO\FRQQRWHVDEODGHRIJUDVVSXVKLQJ

DJDLQVWDQREVWDFOHDVLWVSURXWVRXWRIWKHHDUWKKHQFHWKHPHDQLQJ

GLIILFXOW\DWWKHEHJLQQLQJ7KHKH[DJUDPLQGLFDWHVWKHZD\LQZKLFK

KHDYHQDQGHDUWKEULQJIRUWKLQGLYLGXDOEHLQJV,WLVWKHLUILUVWPHHWLQJ

ZKLFKLVEHVHWZLWKGLIILFXOWLHV7KHORZHUWULJUDP&KrQLVWKH$URXVLQJLWV

PRWLRQLVXSZDUGDQGLWVLPDJHLVWKXQGHU7KHXSSHUWULJUDP.DQVWDQGV

IRUWKH$E\VPDOWKHGDQJHURXV,WVPRWLRQLVGRZQZDUGDQGLWVLPDJHLV

UDLQ7KHVLWXDWLRQSRLQWVWRWHHPLQJFKDRWLFSURIXVLRQWKXQGHUDQGUDLQILOO

WKHDLU%XWWKHFKDRVFOHDUVXS:KLOHWKH$E\VPDOVLQNVWKHXSZDUG

PRYHPHQWHYHQWXDOO\SDVVHVEH\RQGWKHGDQJHU$WKXQGHUVWRUPEULQJV

UHOHDVHIURPWHQVLRQDQGDOOWKLQJVEUHDWKHIUHHO\DJDLQ

7+(-8'*0(17

',)),&8/7<$77+(%(*,11,1*ZRUNVVXSUHPHVXFFHVV

)XUWKHULQJWKURXJKSHUVHYHUDQFH

1RWKLQJVKRXOGEHXQGHUWDNHQ

,WIXUWKHUVRQHWRDSSRLQWKHOSHUV

7LPHVRIJURZWKDUHEHVHWZLWKGLIILFXOWLHV7KH\UHVHPEOHDILUVWELUWK%XW

WKHVHGLIILFXOWLHVDULVHIURPWKHYHU\SURIXVLRQRIDOOWKDWLVVWUXJJOLQJWR

DWWDLQIRUP(YHU\WKLQJLVLQPRWLRQWKHUHIRUHLIRQHSHUVHYHUHVWKHUHLVD

SURVSHFWRIJUHDWVXFFHVVLQVSLWHRIWKHH[LVWLQJGDQJHU:KHQLWLVDPDQV

IDWHWRXQGHUWDNHVXFKQHZEHJLQQLQJVHYHU\WKLQJLVVWLOOXQIRUPHGGDUN

+HQFHKHPXVWKROGEDFNEHFDXVHDQ\SUHPDWXUHPRYHPLJKWEULQJGLVDVWHU

/LNHZLVHLWLVYHU\LPSRUWDQWQRWWRUHPDLQDORQHLQRUGHUWRRYHUFRPHWKH

FKDRVKHQHHGVKHOSHUV7KLVLVQRWWRVD\KRZHYHUWKDWKHKLPVHOIVKRXOG

ORRNRQSDVVLYHO\DWZKDWLVKDSSHQLQJ+HPXVWOHQGKLVKDQGDQG

SDUWLFLSDWHZLWKLQVSLUDWLRQDQGJXLGDQFH

7+(,0$*(

&ORXGVDQGWKXQGHU

7KHLPDJHRI',)),&8/7<$77+(%(*,11,1*

7KXVWKHVXSHULRUPDQ

%ULQJVRUGHURXWRIFRQIXVLRQ

&ORXGVDQGWKXQGHUDUHUHSUHVHQWHGE\GHILQLWHGHFRUDWLYHOLQHVWKLVPHDQV

WKDWLQWKHFKDRVRIGLIILFXOW\DWWKHEHJLQQLQJRUGHULVDOUHDG\LPSOLFLW6R

WRRWKHVXSHULRUPDQKDVWRDUUDQJHDQGRUJDQL]HWKHLQFKRDWHSURIXVLRQRI

VXFKWLPHVRIEHJLQQLQJMXVWDVRQHVRUWVRXWVLONWKUHDGVIURPDNQRWWHG

WDQJOHDQGELQGVWKHPLQWRVNHLQV,QRUGHUWRILQGRQHVSODFHLQWKHLQILQLW\

RIEHLQJRQHPXVWEHDEOHERWKWRVHSDUDWHDQGWRXQLWH

7+(/,1(6

ƒ1LQHDWWKHEHJLQQLQJPHDQV

+HVLWDWLRQDQGKLQGUDQFH

background image

,WIXUWKHUVRQHWRUHPDLQSHUVHYHULQJ

,WIXUWKHUVRQHWRDSSRLQWKHOSHUV

,IDSHUVRQHQFRXQWHUVDKLQGUDQFHDWWKHEHJLQQLQJRIDQHQWHUSULVHKHPXVW

QRWWU\WRIRUFHDGYDQFHEXWPXVWSDXVHDQGWDNHWKRXJKW+RZHYHUQRWKLQJ

VKRXOGSXWKLPRIIKLVFRXUVHKHPXVWSHUVHYHUHDQGFRQVWDQWO\NHHSWKH

JRDOLQVLJKW,WLVLPSRUWDQWWRVHHNRXWWKHULJKWDVVLVWDQWVEXWKHFDQILQG

WKHPRQO\LIKHDYRLGVDUURJDQFHDQGDVVRFLDWHGZLWKKLVIHOORZVLQDVSLULWRI

KXPLOLW\2QO\WKHQZLOOKHDWWUDFWWKRVHZLWKZKRVHKHOSKHFDQFRPEDWWKH

GLIILFXOWLHV

6L[LQWKHVHFRQGSODFHPHDQV

'LIILFXOWLHVSLOHXS

+RUVHDQGZDJRQSDUW

+HLVQRWDUREEHU

+HZDQWVWRZRRZKHQWKHWLPHFRPHV

7KHPDLGHQLVFKDVWH

6KHGRHVQRWSOHGJHKHUVHOI

7HQ\HDUVWKHQVKHSOHGJHVKHUVHOI

:HILQGRXUVHOYHVEHVHWE\GLIILFXOWLHVDQGKLQGUDQFHV6XGGHQO\WKHUHLVD

WXUQRIDIIDLUVDVLIVRPHRQHZHUHFRPLQJXSZLWKDKRUVHDQGZDJRQDQG

XQKLWFKLQJWKHP7KLVHYHQWFRPHVVRXQH[SHFWHGO\WKDWZHDVVXPHWKH

QHZFRPHUWREHDUREEHU*UDGXDOO\LWEHFRPHVFOHDUWKDWKHKDVQRHYLO

LQWHQWLRQVEXWVHHNVWREHIULHQGO\DQGWRRIIHUKHOS%XWWKLVRIIHULVQRWWREH

DFFHSWHGEHFDXVHLWGRHVQRWFRPHIURPWKHULJKWTXDUWHU:HPXVWZDLWXQWLO

WKHWLPHLVIXOILOOHGWHQ\HDUVLVDIXOILOOHGF\FOHRIWLPH7KHQQRUPDO

FRQGLWLRQVUHWXUQRIWKHPVHOYHVDQGZHFDQMRLQIRUFHVZLWKWKHIULHQG

LQWHQGHGIRUXV

8VLQJWKHLPDJHRIDEHWURWKHGJLUOZKRUHPDLQVWUXHWRKHUORYHULQIDFHRI

JUDYHFRQIOLFWVWKHKH[DJUDPJLYHVFRXQVHOIRUDVSHFLDOVLWXDWLRQ:KHQLQ

WLPHVRIGLIILFXOW\DKLQGUDQFHLVHQFRXQWHUHGDQGXQH[SHFWHGUHOLHILVRIIHUHG

IURPDVRXUFHXQUHODWHGWRXVZHPXVWEHFDUHIXODQGQRWWDNHXSRQ

RXUVHOYHVDQ\REOLJDWLRQVHQWDLOHGE\VXFKKHOSRWKHUZLVHRXUIUHHGRPRI

GHFLVLRQLVLPSDLUHG,IZHELGHRXUWLPHWKLQJVZLOOTXLHWGRZQDJDLQDQG

ZHVKDOODWWDLQZKDWZHKDYHKRSHGIRU

6L[LQWKHWKLUGSODFHPHDQV

:KRHYHUKXQWVGHHUZLWKRXWWKHIRUHVWHU

2QO\ORVHVKLVZD\LQWKHIRUHVW

7KHVXSHULRUPDQXQGHUVWDQGVWKHVLJQVRIWKHWLPH

$QGSUHIHUVWRGHVLVW

7RJRRQEULQJVKXPLOLDWLRQ

,IDPDQWULHVWRKXQWLQDVWUDQJHIRUHVWDQGKDVQRJXLGHKHORVHVKLVZD\

:KHQKHILQGVKLPVHOILQGLIILFXOWLHVKHPXVWQRWWU\WRVWHDORXWRIWKHP

XQWKLQNLQJO\DQGZLWKRXWJXLGDQFH)DWHFDQQRWEHGXSHGSUHPDWXUHHIIRUW

ZLWKRXWWKHQHFHVVDU\JXLGDQFHHQGVLQIDLOXUHDQGGLVJUDFH7KHUHIRUHWKH

background image

VXSHULRUPDQGLVFHUQLQJWKHVHHGVRIFRPLQJHYHQWVSUHIHUVWRUHQRXQFHD

ZLVKUDWKHUWKDQWRSURYRNHIDLOXUHDQGKXPLOLDWLRQE\WU\LQJWRIRUFHLWV

IXOILOOPHQW

6L[LQWKHIRXUWKSODFHPHDQV

+RUVHDQGZDJRQSDUW

6WULYHIRUXQLRQ

7RJREULQJVJRRGIRUWXQH

(YHU\WKLQJDFWVWRIXUWKHU

:HDUHLQDVLWXDWLRQLQZKLFKLWLVRXUGXW\WRDFWEXWZHODFNVXIILFLHQW

SRZHU+RZHYHUDQRSSRUWXQLW\WRPDNHFRQQHFWLRQVRIIHUVLWVHOI,WPXVWEH

VHL]HG1HLWKHUIDOVHSULGHQRUIDOVHUHVHUYHVKRXOGGHWHUXV%ULQJLQJRQHVHOI

WRWDNHWKHILUVWVWHSHYHQZKHQLWLQYROYHVDFHUWDLQGHJUHHRIVHOI

DEQHJDWLRQLVDVLJQRILQQHUFODULW\7RDFFHSWKHOSLQDGLIILFXOWVLWXDWLRQLV

QRWDGLVJUDFH,IWKHULJKWKHOSHULVIRXQGDOOJRHVZHOO

ƒ1LQHLQWKHILIWKSODFHPHDQV

'LIILFXOWLHVLQEOHVVLQJ

$OLWWOHSHUVHYHUDQFHEULQJVJRRGIRUWXQH

*UHDWSHUVHYHUDQFHEULQJVPLVIRUWXQH

$QLQGLYLGXDOLVLQDSRVLWLRQLQZKLFKKHFDQQRWVRH[SUHVVKLVJRRG

LQWHQWLRQVWKDWWKH\ZLOODFWXDOO\WDNHVKDSHDQGEHXQGHUVWRRG2WKHUSHRSOH

LQWHUSRVHDQGGLVWRUWHYHU\WKLQJKHGRHV+HVKRXOGWKHQEHFDXWLRXVDQG

SURFHHGVWHSE\VWHS+HPXVWQRWWU\WRIRUFHWKHFRQVXPPDWLRQRIDJUHDW

XQGHUWDNLQJEHFDXVHVXFFHVVLVSRVVLEOHRQO\ZKHQJHQHUDOFRQILGHQFH

DOUHDG\

SUHYDLOV,WLVRQO\WKURXJKIDLWKIXODQGFRQVFLHQWLRXVZRUNXQREWUXVLYHO\

FDUULHGRQWKDWWKHVLWXDWLRQJUDGXDOO\FOHDUVXSDQGWKHKLQGUDQFH

GLVDSSHDUV

6L[DWWKHWRSPHDQV

+RUVHDQGZDJRQSDUW

%ORRG\WHDUVIORZ

7KHGLIILFXOWLHVDWWKHEHJLQQLQJDUHWRRJUHDWIRUVRPHSHUVRQV7KH\JHW

VWXFNDQGQHYHUILQGWKHLUZD\RXWWKH\IROGWKHLUKDQGVDQGJLYHXSWKH

VWUXJJOH6XFKUHVLJQDWLRQLVWKHVDGGHVWRIDOOWKLQJV7KHUHIRUH&RQIXFLXV

VD\VRIWKLVOLQH%ORRG\WHDUVIORZRQHVKRXOGQRWSHUVLVWLQWKLV

LQGH[

0rQJ<RXWKIXO)ROO\

DERYH.r1.((3,1*67,//02817$,1

EHORZ.$17+($%<60$/:$7(5

background image

,QWKLVKH[DJUDPZHDUHUHPLQGHGRI\RXWKDQGIROO\LQWZRGLIIHUHQWZD\V

7KHLPDJHRIWKHXSSHUWULJUDP.rQLVWKHPRXQWDLQWKDWRIWKHORZHU

.DQLVZDWHUWKHVSULQJULVLQJDWWKHIRRWRIWKHPRXQWDLQLVWKHLPDJHRI

LQH[SHULHQFHG\RXWK.HHSLQJVWLOOLVWKHDWWULEXWHRIWKHXSSHUWULJUDPWKDWRI

WKHORZHULVWKHDE\VVGDQJHU6WRSSLQJLQSHUSOH[LW\RQWKHEULQNRID

GDQJHURXVDE\VVLVDV\PERORIWKHIROO\RI\RXWK+RZHYHUWKHWZRWULJUDPV

DOVRVKRZWKHZD\RIRYHUFRPLQJWKHIROOLHVRI\RXWK:DWHULVVRPHWKLQJ

WKDWRIQHFHVVLW\IORZVRQ:KHQWKHVSULQJJXVKHVIRUWKLWGRHVQRWNQRZDW

ILUVWZKHUHLWZLOOJR%XWLWVVWHDG\IORZILOOVXSWKHGHHSSODFHEORFNLQJLWV

SURJUHVVDQGVXFFHVVLVDWWDLQHG

7+(-8'*0(17

<287+)8/)2//<KDVVXFFHVV

,WLVQRW,ZKRVHHNWKH\RXQJIRRO

7KH\RXQJIRROVHHNVPH

$WWKHILUVWRUDFOH,LQIRUPKLP

,IKHDVNVWZRRUWKUHHWLPHVLWLVLPSRUWXQLW\

,IKHLPSRUWXQHV,JLYHKLPQRLQIRUPDWLRQ

3HUVHYHUDQFHIXUWKHUV

,QWKHWLPHRI\RXWKIROO\LVQRWDQHYLO2QHPD\VXFFHHGLQVSLWHRILW

SURYLGHGRQHILQGVDQH[SHULHQFHGWHDFKHUDQGKDVWKHULJKWDWWLWXGHWRZDUG

KLP7KLVPHDQVILUVWRIDOOWKDWWKH\RXWKKLPVHOIPXVWEHFRQVFLRXVRIKLV

ODFNRIH[SHULHQFHDQGPXVWVHHNRXWWKHWHDFKHU:LWKRXWWKLVPRGHVW\DQG

WKLVLQWHUHVWWKHUHLVQRJXDUDQWHHWKDWKHKDVWKHQHFHVVDU\UHFHSWLYLW\ZKLFK

VKRXOGH[SUHVVLWVHOILQUHVSHFWIXODFFHSWDQFHRIWKHWHDFKHU7KLVLVWKHUHDVRQ

ZK\WKHWHDFKHUPXVWZDLWWREHVRXJKWRXWLQVWHDGRIRIIHULQJKLPVHOI2QO\

WKXVFDQWKHLQVWUXFWLRQWDNHSODFHDWWKHULJKWWLPHDQGLQWKHULJKWZD\

$WHDFKHUVDQVZHUWRWKHTXHVWLRQRIDSXSLORXJKWWREHFOHDUDQGGHILQLWH

OLNHWKDWH[SHFWHGIURPDQRUDFOHWKHUHXSRQLWRXJKWWREHDFFHSWHGDVDNH\

IRUUHVROXWLRQRIGRXEWVDQGDEDVLVIRUGHFLVLRQ,IPLVWUXVWIXORU

XQLQWHOOLJHQWTXHVWLRQLQJLVNHSWXSLWVHUYHVRQO\WRDQQR\WKHWHDFKHU+H

GRHVZHOOWRLJQRUHLWLQVLOHQFHMXVWDVWKHRUDFOHJLYHVRQHDQVZHURQO\DQG

UHIXVHVWREHWHPSWHGE\TXHVWLRQVLPSO\LQJGRXEW

*LYHQDGGLWLRQDSHUVHYHUDQFHWKDWQHYHUVODFNHQVXQWLOWKHSRLQWVDUH

PDVWHUHGRQHE\RQHUHDOVXFFHVVLVVXUHWRIROORZ7KXVWKHKH[DJUDP

FRXQVHOVWKHWHDFKHUDVZHOODVWKHSXSLO

7+(,0$*(

$VSULQJZHOOVXSDWWKHIRRWRIWKHPRXQWDLQ

7KHLPDJHRI<287+

7KXVWKHVXSHULRUPDQIRVWHUVKLVFKDUDFWHU

%\WKRURXJKQHVVLQDOOWKDWKHGRHV

background image

$VSULQJVXFFHHGVLQIORZLQJRQDQGHVFDSHVVWDJQDWLRQE\ILOOLQJXSDOOWKH

KROORZSODFHVLQLWVSDWK,QWKHVDPHZD\FKDUDFWHULVGHYHORSHGE\

WKRURXJKQHVVWKDWVNLSVQRWKLQJEXWOLNHZDWHUJUDGXDOO\DQGVWHDGLO\ILOOVXS

DOOJDSVDQGVRIORZVRQZDUG

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

7RPDNHDIRROGHYHORS

,WIXUWKHUVRQHWRDSSO\GLVFLSOLQH

7KHIHWWHUVVKRXOGEHUHPRYHG

7RJRRQLQWKLVZD\EULQJKXPLOLDWLRQ

/DZLVWKHEHJLQQLQJRIHGXFDWLRQ<RXWKLQLWVLQH[SHULHQFHLVLQFOLQHGDWILUVW

WRWDNHHYHU\WKLQJFDUHOHVVO\DQGSOD\IXOO\,WPXVWEHVKRZQWKHVHULRXVQHVV

RIOLIH$FHUWDLQPHDVXUHRIWDNLQJRQHVHOILQKDQGEURXJKWDERXWE\VWULFW

GLVFLSOLQHLVDJRRGWKLQJ+HZKRSOD\VZLWKOLIHQHYHUDPRXQWVWR

DQ\WKLQJ+RZHYHUGLVFLSOLQHVKRXOGQRWGHJHQHUDWHLQWRGULOO&RQWLQXRXV

GULOOKDVDKXPLOLDWLQJHIIHFWDQGFULSSOHVDPDQVSRZHUV

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

7REHDUZLWKIRROVLQNLQGOLQHVVEULQJVJRRGIRUWXQH

7RNQRZKRZWRWDNHZRPHQ

%ULQJVJRRGIRUWXQH

7KHVRQLVFDSDEOHRIWDNLQJFKDUJHRIWKHKRXVHKROG

7KHVHOLQHVSLFWXUHDPDQZKRKDVQRH[WHUQDOSRZHUEXWZKRKDVHQRXJK

VWUHQJWKRIPLQGWREHDUKLVEXUGHQRIUHVSRQVLELOLW\+HKDVWKHLQQHU

VXSHULRULW\DQGWKDWHQDEOHKLPWRWROHUDWHZLWKNLQGOLQHVVWKHVKRUWFRPLQJV

RIKXPDQIROO\7KHVDPHDWWLWXGHLVRZHGWRZRPHQDVWKHZHDNHUVH[2QH

PXVWXQGHUVWDQGWKHPDQGJLYHWKHPUHFRJQLWLRQLQDVSLULWRIFKLYDOURXV

FRQVLGHUDWLRQ2QO\WKLVFRPELQDWLRQRILQQHUVWUHQJWKZLWKRXWHUUHVHUYH

HQDEOHVRQHWRWDNHRQWKHUHVSRQVLELOLW\RIGLUHFWLQJDODUJHUVRFLDOERG\ZLWK

UHDOVXFFHVV

6L[LQWKHWKLUGSODFHPHDQV

7DNHQRWDPDLGHQZKR:KHQVKHVHHVDPDQRIEURQ]H

/RVHVSRVVHVVLRQRIKHUVHOI

1RWKLQJIXUWKHUV

$ZHDNLQH[SHULHQFHGPDQVWUXJJOLQJWRULVHHDVLO\ORVHVKLVRZQ

LQGLYLGXDOLW\ZKHQKHVODYLVKO\LPLWDWHVDVWURQJSHUVRQDOLW\RIKLJKHU

VWDWLRQ+HLVOLNHDJLUOWKURZLQJKHUVHOIDZD\ZKHQVKHPHHWVDVWURQJPDQ

6XFKDVHUYLOHDSSURDFKVKRXOGQRWEHHQFRXUDJHGEHFDXVHLWLVEDGERWKIRU

WKH\RXWKDQGWKHWHDFKHU$JLUORZHVLWWRKHUGLJQLW\WRZDLWXQWLOVKHLV

ZRRHG,QERWKFDVHVLWLVXQGLJQLILHGWRRIIHURQHVHOIDQGQRJRRGFRPHVRI

DFFHSWLQJVXFKDQRIIHU

background image

6L[LQWKHIRXUWKSODFHPHDQV

(QWDQJOHGIROO\EULQJKXPLOLDWLRQ

)RU\RXWKIXOIROO\LWLVWKHPRVWKRSHOHVVWKLQJWRHQWDQJOHLWVHOILQHPSW\

LPDJLQLQJV7KHPRUHREVWLQDWHO\LWFOLQJVWRVXFKXQUHDOIDQWDVLHVWKHPRUH

FHUWDLQO\ZLOOKXPLOLDWLRQRYHUWDNHLW

2IWHQWKHWHDFKHUZKHQFRQIURQWHGZLWKVXFKHQWDQJOHGIROO\KDVQRRWKHU

FRXUVHEXWWROHDYHWKHIRROWRKLPVHOIIRUDWLPHQRWVSDULQJKLPWKH

KXPLOLDWLRQWKDWUHVXOWV7KLVLVIUHTXHQWO\WKHRQO\PHDQVRIUHVFXH

ƒ6L[LQWKHILIWKSODFHPHDQV

&KLOGOLNHIROO\EULQJVJRRGIRUWXQH

$QLQH[SHULHQFHGSHUVRQZKRVHHNVLQVWUXFWLRQLQDFKLOGOLNHDQG

XQDVVXPLQJZD\LVRQWKHULJKWSDWKIRUWKHPDQGHYRLGRIDUURJDQFHZKR

VXERUGLQDWHGKLPVHOIWRKLVWHDFKHUZLOOFHUWDLQO\EHKHOSHG

1LQHDWWKHWRSPHDQV

,QSXQLVKLQJIROO\

,WGRHVQRWIXUWKHURQH

7RFRPPLWWUDQVJUHVVLRQV

7KHRQO\WKLQJWKDWIXUWKHUV

,VWRSUHYHQWWUDQVJUHVVLRQV

6RPHWLPHVDQLQFRUULJLEOHIRROPXVWEHSXQLVKHG+HZKRZLOOQRWKHHGZLOO

EHPDGHWRIHHO7KLVSXQLVKPHQWLVTXLWHGLIIHUHQWIURPDSUHOLPLQDU\

VKDNLQJXS%XWWKHSHQDOW\VKRXOGQRWEHLPSRVHGLQDQJHULWPXVWEH

UHVWULFWHGWRDQREMHFWLYHJXDUGLQJDJDLQVWXQMXVWLILHGH[FHVVHV3XQLVKPHQW

LVQHYHUDQHQGLQLWVHOIEXWVHUYHVPHUHO\WRUHVWRUHRUGHU

7KLVDSSOLHVQRWRQO\LQUHJDUGWRHGXFDWLRQEXWDOVRLQUHJDUGWRWKH

PHDVXUHVWDNHQE\DJRYHUQPHQWDJDLQVWDSRSXODFHJXLOW\RIWUDQVJUHVVLRQV

*RYHUQPHQWDOLQWHUIHUHQFHVKRXOGDOZD\VEHPHUHO\SUHYHQWLYHDQGVKRXOG

KDYHDVLWVVROHDLPWKHHVWDEOLVKPHQWRISXEOLFVHFXULW\DQGSHDFH

LQGH[

+V:DLWLQJ1RXULVKPHQW

DERYH.$17+($%<60$/:$7(5

EHORZ&+,(17+(&5($7,9(+($9(1

$OOEHLQJVKDYHQHHGRIQRXULVKPHQWIURPDERYH%XWWKHJLIWRIIRRGFRPHV

LQLWVRZQWLPHDQGIRUWKLVRQHPXVWZDLW7KLVKH[DJUDPVKRZVWKHFORXGV

LQWKHKHDYHQVJLYLQJUDLQWRUHIUHVKDOOWKDWJURZVDQGWRSURYLGHPDQNLQG

ZLWKIRRGDQGGULQN7KHUDLQZLOOFRPHLQLWVRZQWLPH:HFDQQRWPDNHLW

background image

FRPHZHKDYHWRZDLWIRULW7KHLGHDRIZDLWLQJLVIXUWKHUVXJJHVWHGE\WKH

DWWULEXWHVRIWKHWZRWULJUDPVVWUHQJWKZLWKLQGDQJHULQIURP6WUHQJWKLQ

WKHIDFHRIGDQJHUGRHVQRWSOXQJHDKHDGEXWELGHVLWVWLPHZKHUHDV

ZHDNQHVV

LQWKHIDFHRIGDQJHUJURZVDJLWDWHGDQGKDVQRWWKHSDWLHQFHWRZDLW

7+(-8'*0(17

:$,7,1*,I\RXDUHVLQFHUH

<RXKDYHOLJKWDQGVXFFHVV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

:DLWLQJLVQRWPHUHHPSW\KRSLQJ,WKDVWKHLQQHUFHUWDLQW\RIUHDFKLQJWKH

JRDO6XFKFHUWDLQW\DORQHJLYHVWKDWOLJKWZKLFKOHDGVWRVXFFHVV7KLVOHDGV

WRWKHSHUVHYHUDQFHWKDWEULQJVJRRGIRUWXQHDQGEHVWRZVSRZHUWRFURVVWKH

JUHDWZDWHU2QHLVIDFHGZLWKDGDQJHUWKDWKDVWREHRYHUFRPH:HDNQHVV

DQGLPSDWLHQFHFDQGRQRWKLQJ2QO\DVWURQJPDQFDQVWDQGXSWRKLVIDWH

IRUKLVLQQHUVHFXULW\HQDEOHVKLPWRHQGXUHWRWKHHQG7KLVVWUHQJWKVKRZV

LWVHOILQXQFRPSURPLVLQJWUXWKIXOQHVV>ZLWKKLPVHOI@,WLVRQO\ZKHQZH

KDYHWKHFRXUDJHWRIDFHWKLQJVH[DFWO\DVWKH\DUHZLWKRXWDQ\VRUWRIVHOI

GHFHSWLRQRULOOXVLRQWKDWDOLJKWZLOOGHYHORSRXWRIHYHQWVE\ZKLFKWKH

SDWKWRVXFFHVVPD\EHUHFRJQL]HG7KLVUHFRJQLWLRQPXVWEHIROORZHGE\

UHVROXWHDQGSHUVHYHULQJDFWLRQ)RURQO\WKHPDQZKRJRHVWRPHHWKLVIDWH

UHVROXWHO\LVHTXLSSHGWRGHDOZLWKLWDGHTXDWHO\7KHQKHZLOOEHDEOHWRFURVV

WKHJUHDWZDWHUWKDWLVWRVD\KHZLOOEHFDSDEOHRIPDNLQJWKHQHFHVVDU\

GHFLVLRQDQGRIVXUPRXQWLQJWKHGDQJHU

7+(,0$*(

&ORXGVULVHXSWRKHDYHQ

7KHLPDJHRI:$,7,1*

7KXVWKHVXSHULRUPDQHDWVDQGGULQNV

,VMR\RXVDQGRIJRRGFKHHU

:KHQFORXGVULVHLQWKHVN\LWLVDVLJQWKDWLWZLOOUDLQ7KHUHLVQRWKLQJWR

GREXWWRZDLWXQWLODIWHUWKHUDLQIDOOV,WLVWKHVDPHLQOLIHZKHQGHVWLQ\LVDW

ZRUN:HVKRXOGQRWZRUU\DQGVHHNWRVKDSHWKHIXWXUHE\LQWHUIHULQJLQ

WKLQJVEHIRUHWKHWLPHLVULSH:HVKRXOGTXLHWO\IRUWLI\WKHERG\ZLWKIRRG

DQGGULQNDQGWKHPLQGZLWKJODGQHVVDQGJRRGFKHHU)DWHFRPHVZKHQLW

ZLOODQGWKXVZHDUHUHDG\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

:DLWLQJLQWKHPHDGRZ

,7IXUWKHUVRQHWRDELGHLQZKDWHQGXUHV

1REODPH

background image

7KHGDQJHULVQRW\HWFORVH2QHLVVWLOOZDLWLQJRQWKHRSHQSODLQ

&RQGLWLRQVDUHVWLOOVLPSOH\HWWKHUHLVDIHHOLQJRIVRPHWKLQJLPSHQGLQJ

2QHPXVWFRQWLQXHWROHDGDUHJXODUOLIHDVORQJDVSRVVLEOH2QO\LQWKLVZD\

GRHVRQHJXDUGDJDLQVWDSUHPDWXUHZDVWHRIVWUHQJWKNHHSIUHHRIEODPHDQG

HUURUWKDWZRXOGEHFRPHDVRXUFHRIZHDNQHVVODWHURQ

1LQHLQWKHVHFRQGSODFHPHDQV

:DLWLQJRQWKHVDQG

7KHUHLVVRPHJRVVLS

7KHHQGEULQJVJRRGIRUWXQH

7KHGDQJHUJUDGXDOO\FRPHVFORVHU6DQGLVQHDUWKHEDQNRIWKHULYHUDQG

WKHZDWHUPHDQVGDQJHU'LVDJUHHPHQWVFURSXS*HQHUDOXQUHVWFDQHDVLO\

GHYHORSLQVXFKWLPHVDQGZHOD\WKHEODPHRQRQHDQRWKHU+HZKRVWD\V

FDOPZLOOVXFFHHGLQPDNLQJWKLQJVJRZHOOLQWKHHQG6ODQGHUZLOOEH

VLOHQFHGLIZHGRQRWJUDWLI\LWZLWKLQMXUHGUHWRUWV

1LQHLQWKHWKLUGSODFHPHDQV

:DLWLQJLQWKHPXG

%ULQJVDERXWWKHDUULYDORIWKHHQHP\

0XGLVQRSODFHIRUZDLWLQJVLQFHLWLVDOUHDG\EHLQJZDVKHGE\WKHZDWHURI

WKHVWUHDP,QVWHDGRIKDYLQJJDWKHUHGVWUHQJWKWRFURVVWKHVWUHDPDWRQHWU\

RQHKDVPDGHDSUHPDWXUHVWDUWWKDWKDVJRWKLPQRIDUWKHUWKDQWKHPXGG\

EDQN6XFKDQXQIDYRUDEOHSRVLWLRQLQYLWHVHQHPLHVIURPZLWKRXWZKR

QDWXUDOO\WDNHDGYDQWDJHRILW&DXWLRQDQGDVHQVHRIWKHVHULRXVQHVVRIWKH

VLWXDWLRQDUHDOOWKDWFDQNHHSRQHIURPLQMXU\

6L[LQWKHIRXUWKSODFHPHDQV

:DLWLQJLQEORRG

*HWRXWRIWKHSLW

7KHVLWXDWLRQLVH[WUHPHO\GDQJHURXV,7LVRIXWPRVWJUDYLW\QRZDPDWWHU

RIOLIHDQGGHDWK%ORRGVKHGVHHPVLPPLQHQW7KHUHLVQRJRLQJIRUZDUGRU

EDFNZDUGZHDUHFXWRIIDVLILQDSLW1RZZHPXVWVLPSO\VWDQGIDVWDQGOHW

IDWHWDNHLWVFRXUVH7KLVFRPSRVXUHZKLFKNHHSVXVIURPDJJUDYDWLQJWKH

WURXEOHE\DQ\WKLQJZHPLJKWGRLVWKHRQO\ZD\RIJHWWLQJRXWRIWKH

GDQJHURXVSLW

ƒ1LQHLQWKHILIWKSODFHPHDQV

:DLWLQJDWPHDWDQGGULQN

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

(YHQLQWKHPLGVWRIGDQJHUWKHUHFRPHLQWHUYDOVRISHDFHZKHQWKLQJVJR

UHODWLYHO\ZHOO,IZHSRVVHVVHQRXJKLQQHUVWUHQJWKZHVKDOOWDNHDGYDQWDJH

RIWKHVHLQWHUYDOVWRIRUWLI\RXUVHOYHVIRUUHQHZHGVWUXJJOH:HPXVWNQRZ

KRZWRHQMR\WKHPRPHQWZLWKRXWEHLQJGHIOHFWHGIURPWKHJRDOIRU

background image

SHUVHYHUDQFHLVQHHGHGWRUHPDLQYLFWRULRXV

7KLVLVWUXHLQSXEOLFOLIHDVZHOOLWLVQRWSRVVLEOHWRDFKLHYHHYHU\WKLQJDOO

DWRQFH7KHKHLJKWRIZLVGRPLVWRDOORZSHRSOHHQRXJKUHFUHDWLRQWR

TXLFNHQSOHDVXUHLQWKHLUZRUNXQWLOWKHWDVNLVFRPSOHWHG+HUHLQOLHVWKH

VHFUHWRIWKHZKROHKH[DJUDP,WGLIIHUVIURP&KLQ2%6758&7,21LQ

WKHIDFWWKDWLQWKLVLQVWDQFHZKLOHZDLWLQJZHDUHVXUHRIRXUFDXVHDQG

WKHUHIRUHGRQRWORVHWKHVHUHQLW\ERUQRILQQHUFKHHUIXOQHVV

6L[DWWKHWRSPHDQV

2QHIDOOVLQWRWKHSLW

7KUHHXQLQYLWHGJXHVWVDUULYH

+RQRUWKHPDQGLQWKHHQGWKHUHZLOOEHJRRGIRUWXQH

7KHZDLWLQJLVRYHUWKHGDQJHUFDQQRORQJHUEHDYHUWHG2QHIDOOVLQWRWKH

SLWDQGPXVW\LHOGWRWKHLQHYLWDEOH(YHU\WKLQJVHHPVWRKDYHEHHQLQYDLQ

%XWSUHFLVHO\LQWKLVH[WUHPLW\WKLQJVWDNHDQXQIRUHVHHQWXUQ:LWKRXWD

PRYHRQRQHVRZQSDUWWKHUHLVRXWVLGHLQWHUYHQWLRQ$WILUVWRQHFDQQRWEH

VXUHRILWVPHDQLQJLVLWUHVFXHRULVLWGHVWUXFWLRQ"$SHUVRQLQWKLV

VLWXDWLRQPXVWNHHSKLVPLQGDOHUWDQGQRWZLWKGUDZLQWRKLPVHOIZLWKD

VXON\JHVWXUHRIUHIXVDOEXWPXVWJUHHWWKHQHZWXUQZLWKUHVSHFW7KXVKH

XOWLPDWHO\HVFDSHVWKHGDQJHUDQGDOOJRHVZHOO(YHQKDSS\WXUQVRIIRUWXQH

RIWHQFRPHLQDIRUPWKDWDWILUVWVHHPVVWUDQJHWRXV

LQGH[

6XQJ&RQIOLFW

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ.$17+($%<60$/:$7(5

7KHXSSHUWULJUDPZKRVHLPDJHLVKHDYHQKDVDQXSZDUGPRYHPHQWWKH

ORZHUWULJUDPZDWHULQDFFRUGDQFHZLWKLWVQDWXUHWHQGVGRZQZDUG7KXVWKH

WZRKDOYHVPRYHDZD\IURPHDFKRWKHUJLYLQJULVHWRWKHLGHDRIFRQIOLFW

7KHDWWULEXWHRIWKH&UHDWLYHLVVWUHQJWKWKDWRIWKH$E\VPDOLVGDQJHU

JXLOH

:KHUHFXQQLQJKDVIRUFHEHIRUHLWWKHUHLVFRQIOLFW

$WKLUGLQGLFDWLRQRIFRQIOLFWLQWHUPVRIFKDUDFWHULVSUHVHQWHGE\WKH

FRPELQDWLRQRIGHHSFXQQLQJZLWKLQDQGIL[HGGHWHUPLQDWLRQRXWZDUGO\$

SHUVRQRIWKLVFKDUDFWHUZLOOFHUWDLQO\EHTXDUUHOVRPH

7+(-8'*0(17

&21)/,&7<RXDUHVLQFHUH

$QGDUHEHLQJREVWUXFWHG

$FDXWLRXVKDOWKDOIZD\EULQJVJRRGIRUWXQH

*RLQJWKURXJKWRWKHHQGEULQJVPLVIRUWXQH

background image

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

,WGRHVQRWIXUWKHURQHWRFURVVWKHJUHDWZDWHU

&RQIOLFWGHYHORSVZKHQRQHIHHOVKLPVHOIWREHLQWKHULJKWDQGUXQVLQWR

RSSRVLWLRQ,IRQHLVQRWFRQYLQFHGRIEHLQJLQWKHULJKWRSSRVLWLRQOHDGVWR

FUDIWLQHVVRUKLJKKDQGHGHQFURDFKPHQWEXWQRWWRRSHQFRQIOLFW

,IDPDQLVHQWDQJOHGLQDFRQIOLFWKLVRQO\VDOYDWLRQOLHVLQEHLQJVRFOHDU

KHDGHGDQGLQZDUGO\VWURQJWKDWKHLVDOZD\VUHDG\WRFRPHWRWHUPVE\

PHHWLQJWKHRSSRQHQWKDOIZD\7RFDUU\RQHWKHFRQIOLFWWRWKHELWWHUHQGKDV

HYLOHIIHFWVHYHQZKHQRQHLVWKHULJKWEHFDXVHWKHHQPLW\LVWKHQ

SHUSHWXDWHG,WLVLPSRUWDQWWRVHHWKHJUHDWPDQWKDWLVDQLPSDUWLDOPDQ

ZKRVHDXWKRULW\LVJUHDWHQRXJKWRWHUPLQDWHWKHFRQIOLFWDPLFDEO\RUDVVXUHD

MXVWGHFLVLRQ,QWLPHVRIVWULIHFURVVLQJWKHJUHDWZDWHULVWREHDYRLGHGWKDW

LVGDQJHURXVHQWHUSULVHVDUHQRWWREHEHJXQEHFDXVHLQRUGHUWREH

VXFFHVVIXO

WKH\UHTXLUHFRQFHUWHGXQLW\RIIRFXV&RQIOLFWZLWKLQZHDNHQVWKHSRZHUWR

FRQTXHUGDQJHUZLWKRXW

7+(,0$*(

+HDYHQDQGZDWHUJRWKHLURSSRVLWHZD\V

7KHLPDJHRI&21)/,&7

7KXVLQDOOKLVWUDQVDFWLRQVWKHVXSHULRUPDQ

&DUHIXOO\FRQVLGHUVWKHEHJLQQLQJ

7KHLPDJHLQGLFDWHVWKDWWKHFDXVHVRIFRQIOLFWDUHODWHQWLQWKHRSSRVLQJ

WHQGHQFLHVRIWKHWZRWULJUDPV2QFHWKHVHRSSRVLQJWHQGHQFLHVDSSHDU

FRQIOLFWLVLQHYLWDEOH7RDYRLGLWWKHUHIRUHHYHU\WKLQJPXVWEHWDNHQ

FDUHIXOO\LQWRFRQVLGHUDWLRQLQWKHYHU\EHJLQQLQJ,IULJKWVDQGGXWLHVDUH

H[DFWO\GHILQHGRULILQDJURXSWKHVSLULWXDOWUHQGVRIWKHLQGLYLGXDOV

KDUPRQL]HWKHFDXVHRIFRQIOLFWLVUHPRYHGLQDGYDQFH

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

,IRQHGRHVQRWSHUSHWXDWHWKHDIIDLU

7KHUHLVDOLWWOHJRVVLS

,QWKHHQGJRRGIRUWXQHFRPHV

:KLOHDFRQIOLFWLVLQWKHLQFLSLHQWVWDJHWKHEHVWWKLQJ7RGRLVWRGURSWKH

LVVXH(VSHFLDOO\ZKHQWKHDGYHUVDU\LVVWURQJHULWLVQRWDGYLVDEOHWRULVN

SXVKLQJWKHFRQIOLFWWRDGHFLVLRQ,WPD\FRPHWRDVOLJKWGLVSXWHEXWLQWKH

HQGDOOJRHVZHOO

1LQHLQWKHVHFRQGSODFHPHDQV

2QHFDQQRWHQJDJHLQFRQIOLFW

2QHUHWXUQVKRPHJLYHVZD\

7KHSHRSOHRIKLVWRZQ

background image

7KUHHKXQGUHGKRXVHKROGV

5HPDLQIUHHRIJXLOW

,QDVWUXJJOHZLWKDQHQHP\RIVXSHULRUVWUHQJWKUHWUHDWLVQRGLVJUDFH

7LPHO\ZLWKGUDZDOSUHYHQWVEDGFRQVHTXHQFHV,IRXWRIDIDOVHVHQVHRI

KRQRUDPDQDOORZHGKLPVHOIWREHWHPSWHGLQWRDQXQHTXDOFRQIOLFWKH

ZRXOGEHGUDZLQJGRZQGLVDVWHUXSRQKLPVHOI,QVXFKDFDVHDZLVHDQG

FRQFLOLDWRU\DWWLWXGHEHQHILWVWKHZKROHFRPPXQLW\ZKLFKZLOOWKHQQRWEH

GUDZQLQWRWKHFRQIOLFW

6L[LQWKHWKLUGSODFHPHDQV

7RQRXULVKRQHVHOIRQDQFLHQWYLUWXHLQGXFHVSHUVHYHUDQFH

'DQJHU,QWKHHQGJRRGIRUWXQHFRPHV

,IE\FKDQFH\RXDUHLQWKHVHUYLFHRIDNLQJ

6HHNQRWZRUNV

7KLVLVDZDUQLQJRIWKHGDQJHUWKDWJRHVZLWKDQH[SDQVLYHGLVSRVLWLRQ2QO\

WKDWZKLFKKDVEHHQKRQHVWO\DFTXLUHGWKURXJKPHULWUHPDLQVDSHUPDQHQW

SRVVHVVLRQ,WFDQKDSSHQWKDWVXFKDSRVVHVVLRQPD\EHFRQWHVWHGEXWVLQFH

LW

LVUHDOO\RQHVRZQRQHFDQQRWEHUREEHGRILW:KDWHYHUDPDQSRVVHVVHV

WKURXJKWKHVWUHQJWKRIKLVRZQQDWXUHFDQQRWEHORVW,IRQHHQWHUVWKH

VHUYLFHRIDVXSHULRURQHFDQDYRLGFRQIOLFWRQO\E\QRWVHHNLQJZRUNVIRUWKH

VDNHRISUHVWLJH,WLVHQRXJKLIWKHZRUNLVGRQHOHWWKHKRQRUJRWRWKH

RWKHU

1LQHLQWKHIRXUWKSODFHPHDQV

2QHFDQQRWHQJDJHLQFRQIOLFW

2QHWXUQVEDFNDQGVXEPLWVWRIDWH

&KDQJHVRQHVDWWLWXGH

$QGILQGVSHDFHLQSHUVHYHUDQFH

*RRGIRUWXQH

7KLVUHIHUVWRDSHUVRQZKRVHLQQHUDWWLWXGHDWILUVWODFNVSHDFH+HGRHVQRW

IHHOFRQWHQWZLWKKLVVLWXDWLRQDQGZRXOGOLNHWRLPSURYHLWWKURXJKFRQIOLFW

,QFRQWUDVWWRWWKHVLWXDWLRQRIWKHQLQHLQWKHVHFRQGSODFHKHLVGHDOLQJZLWK

DZHDNHURSSRQHQWDQGPLJKWWKHUHIRUHVXFFHHG%XWKHFDQQRWFDUU\RQWKH

ILJKWEHFDXVHVLQFHULJKWLVQRWRQKLVVLGHKHFDQQRWMXVWLI\WKHFRQIOLFWWR

KLVFRQVFLHQFH7KHUHIRUHKHWXUQVEDFNDQGDFFHSWVKLVIDWH+HFKDQJHVKLV

PLQGDQGILQGVODVWLQJSHDFHLQEHLQJDWRQHZLWKHWHUQDOODZ7KLVEULQJV

JRRGIRUWXQH

ƒ1LQHLQWKHILIWKSODFHPHDQV

7RFRQWHQGEHIRUHKLP

%ULQJVVXSUHPHJRRGIRUWXQH

7KLVUHIHUVWRDQDUELWHULQDFRQIOLFWZKRLVSRZHUIXODQGMXVWDQGVWURQJ

HQRXJKWROHQGZHLJKWWRWKHULJKWVLGH$GLVSXWHFDQEHWXUQHGRYHUWRKLP

background image

ZLWKFRQILGHQFH,IRQHLVLQWKHULJKWRQHDWWDLQVJUHDWJRRGIRUWXQH

1LQHDWWKHWRSPHDQV

(YHQLIE\FKDQFHDOHDWKHUEHOWLVEHVWRZHGRQRQH

%\WKHHQGRIDPRUQLQJ

,WZLOOKDYHEHHQVQDWFKHGDZD\WKUHHWLPHV

+HUHZHKDYHVRPHRQHZKRKDVFDUULHGDFRQIOLFWWRWKHELWWHUHQGDQGKDV

WULXPSKHG+HLVJUDQWHGDGHFRUDWLRQEXWKLVKDSSLQHVVGRHVQRWODVW+HLV

DWWDFNHGDJDLQDQGDJDLQDQGWKHUHVXOWLVFRQIOLFWZLWKRXWHQG

LQGH[

6KLK7KH$UP\

DERYH.817+(5(&(37,9(($57+

EHORZ.$17+($%<60$/:$7(5

7KLVKH[DJUDPLVPDGHXSRIWKHWULJUDPV.DQZDWHUDQG.XQHDUWKDQG

WKXVLWV\PEROL]HVWKHJURXQGZDWHUVWRUHGXSLQWKHHDUWK,QWKHVDPHZD\

PLOLWDU\VWUHQJWKLVVWRUHGXSLQWKHPDVVRIWKHSHRSOHLQYLVLEOHLQWLPHVRI

SHDFHEXWDOZD\VUHDG\IRUXVHDVDVRXUFHRISRZHU7KHDWWULEXWHVRIWKH

WZR

WULJUDPVDUHGDQJHULQVLGHDQGREHGLHQFHPXVWSUHYDLORXWVLGH

2IWKHLQGLYLGXDOOLQHVWKHRQHWKDWFRQWUROVWKHKH[DJUDPLVWKHVWURQJ

QLQHLQWKHVHFRQGSODFHWRZKLFKWKHRWKHUOLQHVDOO\LHOGLQJDUH

VXERUGLQDWH7KLVOLQHLQGLFDWHVDFRPPDQGHUEHFDXVHLWVWDQGVLQWKH

PLGGOHRIRQHRIWKHWZRWULJUDPV%XWVLQFHLWLVLQWKHORZHUUDWKHUWKDQWKH

XSSHUWULJUDPLWUHSUHVHQWVQRWWKHUXOHUEXWWKHHIILFLHQWJHQHUDOZKR

PDLQWDLQVREHGLHQFHLQWKHDUP\E\KLVDXWKRULW\

7+(-8'*0(17

7+($50<7KHDUP\QHHGVSHUVHYHUDQFH

$QGDVWURQJPDQ

*RRGIRUWXQHZLWKRXWEODPH

$QDUP\LVDPDVVWKDWQHHGVRUJDQL]DWLRQLQRUGHUWREHFRPHDILJKWLQJIRUFH

:LWKRXWVWULFWGLVFLSOLQHQRWKLQJFDQEHDFFRPSOLVKHGEXWWKLVGLVFLSOLQH

PXVWQRWEHDFKLHYHGE\IRUFH,WUHTXLUHVDVWURQJPDQZKRFDSWXUHVWKH

KHDUWVRIWKHSHRSOHDQGDZDNHQVWKHLUHQWKXVLDVP,QRUGHUWKDWKHPD\

GHYHORSKLVDELOLWLHVKHQHHGVWKHFRPSOHWHFRQILGHQFHRIKLVUXOHUZKRPXVW

HQWUXVWKLPZLWKIXOOUHVSRQVLELOLW\DVORQJDVWKHZDUODVWV%XWZDULVDOZD\V

DGDQJHURXVWKLQJDQGEULQJVZLWKLWGHVWUXFWLRQDQGGHYDVWDWLRQ7KHUHIRUH

LWVKRXOGQRWEHUHVRUWHGWRUDVKO\EXWOLNHDSRLVRQRXVGUXJVKRXOGEHXVHG

DVDODVWUHFRXUVH

background image

7+(,0$*(

,QWKHPLGGOHRIWKHHDUWKLVZDWHU

7KHLPDJHRI7+($50<

7KXVWKHVXSHULRUPDQLQFUHDVHVKLVPDVVHV

%\JHQHURVLW\WRZDUGWKHSHRSOH

*URXQGZDWHULVLQYLVLEO\SUHVHQWZLWKLQWKHHDUWK,QWKHVDPHZD\WKH

PLOLWDU\SRZHURIDSHRSOHLVLQYLVLEO\SUHVHQWLQWKHPDVVHV:KHQGDQJHU

WKUHDWHQVHYHU\SHDVDQWEHFRPHVSUHVHQWLQWKHPDVVHV:KHQGDQJHU

WKUHDWHQVHYHU\SHDVDQWEHFRPHVDVROGLHUZKHQWKHZDUHQGVKHJRHVEDFN

WRKLVSORZ+HZKRLVJHQHURXVWRZDUGWKHSHRSOHZLQVWKHLUORYHDQGD

SHRSOHOLYLQJXQGHUDPLOGUXOHEHFRPHVVWURQJDQGSRZHUIXO2QO\DSHRSOH

HFRQRPLFDOO\VWURQJFDQEHLPSRUWDQWLQPLOLWDU\SRZHU6XFKSRZHUPXVW

WKHUHIRUHEHFXOWLYDWHGE\LPSURYLQJWKHHFRQRPLFFRQGLWLRQRIWKHSHRSOH

DQGE\KXPDQHJRYHUQPHQW2QO\ZKHQWKHUHLVWKLVLQYLVLEOHERQGEHWZHHQ

JRYHUQPHQWDQGSHRSOHVRWKDWWKHSHRSOHDUHVKHOWHUHGE\WKHLU

JRYHUQPHQWDVJURXQGZDWHULVVKHOWHUHGE\WKHHDUWKLVLWSRVVLEOHWRZDJHD

YLFWRULRXVZDU

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

$QDUP\PXVWVHWIRUWKLQSURSHURUGHU

,IWKHRUGHULVQRWJRRGPLVIRUWXQHWKUHDWHQV

$WWKHEHJLQQLQJRIDPLOLWDU\HQWHUSULVHRUGHULVLPSHUDWLYH$MXVWDQG

YDOLGFDXVHPXVWH[LVWDQGWKHREHGLHQFHDQGFRRUGLQDWLRQRIWKHWURRSVPXVW

EHZHOORUJDQL]HGRWKHUZLVHWKHUHVXOWLVLQHYLWDEO\IDLOXUH

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

,QWKHPLGVWRIWKHDUP\

*RRGIRUWXQH1REODPH

7KHNLQJEHVWRZVDWULSOHGHFRUDWLRQ

7KHOHDGHUVKRXOGEHLQWKHPLGVWRIKLVDUP\LQWRXFKZLWKLWVKDULQJJRRG

DQGEDGZLWKWKHPDVVHVKHOHDGV7KLVDORQHPDNHVKLPHTXDOWRWKHKHDY\

GHPDQGVPDGHXSRQKLP+HQHHGVDOVRWKHUHFRJQLWLRQRIWKHUXOHU7KH

GHFRUDWLRQVKHUHFHLYHVDUHMXVWLILHGEHFDXVHWKHUHLVQRTXHVWLRQRISHUVRQDO

SUHIHUPHQWKHUHWKHZKROHDUP\ZKRVHFHQWHUKHLVLVKRQRUHGLQKLV

SHUVRQ

6L[LQWKHWKLUGSODFHPHDQV

3HUFKDQFHWKHDUP\FDUULHVFRUSVHVLQWKHZDJRQ

0LVIRUWXQH

+HUHZHKDYHDFKRLFHRIWZRH[SODQDWLRQV2QHSRLQWVWRGHIHDWEHFDXVH

background image

VRPHRQHRWKHUWKDQWKHFKRVHQOHDGHULQWHUIHUHVZLWKWKHFRPPDQGWKH

RWKHULVVLPLODULQLWVJHQHUDOPHDQLQJEXWWKHH[SUHVVLRQFDUULHVFRUSVHVLQ

WKHZDJRQLVLQWHUSUHWHGGLIIHUHQWO\$WEXULDOVDQGDWVDFULILFHVWRWKHGHDGLW

ZDVFXVWRPDU\LQ&KLQDIRUWKHGHFHDVHGWRZKRPWKHVDFULILFHZDVPDGHWR

EHUHSUHVHQWHGE\DER\RIWKHIDPLO\ZKRVDWLQWKHGHDGPDQVSODFHDQG

ZDV

KRQRUHGDVKLVUHSUHVHQWDWLYH2QWKHEDVLVRIWKLVFXVWRPWKHWH[WLV

LQWHUSUHWHGDVPHDQLQJWKDWDFRUSVHER\LVVLWWLQJLQWKHZDJRQRULQ

RWKHUZRUGVWKDWDXWKRULW\LVQRWEHLQJH[HUFLVHGE\WKHSURSHUOHDGHUVEXW

KDV

EHHQXVXUSHGE\RWKHUV3HUKDSVWKHZKROHGLIILFXOW\FOHDUVXSLILWLVLQIHUUHG

WKDWWKHUHKDVEHHQDQHUURULQFRS\LQJ7KHFKDUDFWHUIDQPHDQLQJDOOPD\

KDYHEHHQPLVUHDGDVVKLKZKLFKPHDQVFRUSVH$OORZLQJIRUWKLVHUURU

WKHPHDQLQJZRXOGEHWKDWLIWKHPXOWLWXGHDVVXPHVOHDGHUVKLSRIWKHDUP\

ULGHVLQWKHZDJRQPLVIRUWXQHZLOOHQVXH

6L[LQWKHIRXUWKSODFHPHDQV

7KHDUP\UHWUHDWV1REODPH

,QWKHIDFHRIDVXSHULRUHQHP\ZLWKZKRPLWZRXOGEHKRSHOHVVWRHQJDJHLQ

EDWWOHDQRUGHUO\UHWUHDWLVWKHRQO\FRUUHFWSURFHGXUHEHFDXVHLWZLOOVDYHWKH

DUP\IURPGHIHDWDQGGLVLQWHJUDWLRQ,WLVE\QRPHDQVDVLJQRIFRXUDJHRU

VWUHQJWKWRLQVLVWXSRQHQJDJLQJLQDKRSHOHVVVWUXJJOHUHJDUGOHVVRI

FLUFXPVWDQFHV

ƒ6L[LQWKHILIWKSODFHPHDQV

7KHUHLVJDPHLQWKHILHOG

,WIXUWKHUVRQHWRFDWFKLW

:LWKRXWEODPH

/HWWKHHOGHVWOHDGWKHDUP\

7KH\RXQJHUWUDQVSRUWVFRUSVHV

7KHQSHUVHYHUDQFHEULQJVPLVIRUWXQH

*DPHLVLQWKHILHOGLWKDVOHIWLWVXVXDOKDXQWVLQWKHIRUHVWDQGLV

GHYDVWDWLQJWKHILHOGV7KLVSRLQWVWRDQHQHP\LQYDVLRQ(QHUJHWLFFRPEDW

DQGSXQLVKPHQWDUHKHUHWKRURXJKO\MXVWLILHGEXWWKH\PXVWQRWGHJHQHUDWH

LQWRDZLOGPHOHHLQZKLFKHYHU\RQHIHQGVIRUKLPVHOI'HVSLWHWKHJUHDWHVW

GHJUHHRISHUVHYHUDQFHDQGEUDYHU\WKLVZRXOGOHDGWRPLVIRUWXQH7KHDUP\

PXVWEHGLUHFWHGE\DQH[SHULHQFHGOHDGHU,WLVDPDWWHURIZDJLQJZDUQRW

RI

SHUPLWWLQJWKHPREWRVODXJKWHUDOOZKRIDOOLQWRWKHLUKDQGVLIWKH\GR

GHIHDWZLOOEHWKHUHVXOWDQGGHVSLWHDOOSHUVHYHUDQFHWKHUHLVGDQJHURI

PLVIRUWXQH

6L[DWWKHWRSPHDQV

7KHJUHDWSULQFHLVVXHVFRPPDQGV

)RXQGVVWDWHVYHVWVIDPLOLHVZLWKILHIV

,QIHULRUSHRSOHVKRXOGQRWEHHPSOR\HG

background image

7KHZDUKDVHQGHGVXFFHVVIXOO\YLFWRU\LVZRQDQGWKHNLQJGLYLGHGHVWDWHV

DQGILHIVDPRQJKLVIDLWKIXOYDVVDOV%XWLWLVLPSRUWDQWWKDWLQIHULRUSHRSOH

VKRXOGQRWFRPHLQWRSRZHU,IWKH\KDYHKHOSHGOHWWKHPEHSDLGRIIZLWK

PRQH\EXWWKH\VKRXOGQRWEHDZDUGHGODQGVRUWKHSULYLOHJHVRIUXOHUVOHVW

SRZHUEHDEXVHG

LQGH[

3L+ROGLQJ7RJHWKHU>XQLRQ@

DERYH.$17+($%<60$/:$7(5

EHORZ.817+(5(&(37,9(($57+

7KHZDWHUVRQWKHVXUIDFHRIWKHHDUWKIORZWRJHWKHUZKHUHYHUWKH\FDQDVIRU

H[DPSOHLQWKHRFHDQZKHUHDOOWKHULYHUVFRPHWRJHWKHU6\PEROLFDOO\WKLV

FRQQRWHVKROGLQJWRJHWKHUDQGWKHODZVWKDWUHJXODWHLW7KHVDPHLGHDLV

VXJJHVWHGE\WKHIDFWWKDWDOOWKHOLQHVRIWKHKH[DJUDPH[FHSWWKHILIWKWKH

SODFHRIWKHUXOHUDUH\LHOGLQJ7KH\LHOGLQJOLQHVKROGWRJHWKHUEHFDXVHWKH\

DUHLQIOXHQFHGE\DPDQRIVWURQJZLOOLQWKHOHDGLQJSRVLWLRQDPDQZKRLV

WKHLUFHQWHURIXQLRQ0RUHRYHUWKLVVWURQJDQGJXLGLQJSHUVRQDOLW\LQWXUQ

KROGVWRJHWKHUZLWKWKHRWKHUVILQGLQJLQWKHPWKHFRPSOHPHQWRIKLVRZQ

QDWXUH

7+(-8'*0(17

+2/',1*72*(7+(5EULQJVJRRGIRUWXQH

,QTXLUHRIWKHRUDFOHRQFHDJDLQ

:KHWKHU\RXSRVVHVVVXEOLPLW\FRQVWDQF\DQGSHUVHYHUDQFH

7KHQWKHUHLVQREODPH

7KRVHZKRDUHXQFHUWDLQJUDGXDOO\MRLQ

:KRHYHUFRPHWRRODWH

0HHWVZLWKPLVIRUWXQH

:KDWLVUHTXLUHGLVWKDWZHXQLWHZLWKRWKHUVLQRUGHUWKDWDOOPD\

FRPSOHPHQWDQGDLGRQHDQRWKHUWKURXJKKROGLQJWRJHWKHU%XWVXFK

KROGLQJWRJHWKHUFDOOVIRUDFHQWUDOILJXUHDURXQGZKRPRWKHUSHUVRQVPD\

XQLWH7REHFRPHDFHQWHURILQIOXHQFHKROGLQJSHRSOHWRJHWKHULVDJUDYH

PDWWHUDQGIUDXJKWZLWKJUHDWUHVSRQVLELOLW\,WUHTXLUHVJUHDWQHVVRIVSLULW

FRQVLVWHQF\DQGVWUHQJWK7KHUHIRUHOHWKLPZKRZLVKHVWRJDWKHURWKHUV

DERXWKLPDVNKLPVHOIZKHWKHUKHLVHTXDOWRWKHXQGHUWDNLQJIRUDQ\RQH

DWWHPSWLQJWKHWDVNZLWKRXWDUHDOFDOOLQJIRULWRQO\PDNHVFRQIXVLRQZRUVH

WKDQLIQRXQLRQDWDOOKDGWDNHQSODFH

%XWZKHQWKHUHLVDUHDOUDOO\LQJSRLQWWKRVHZKRDWILUVWDUHKHVLWDQWRU

XQFHUWDLQJUDGXDOO\FRPHLQRIWKHLURZQDFFRUG/DWHFRPHUVPXVWVXIIHUWKH

FRQVHTXHQFHVIRULQKROGLQJWRJHWKHUWKHTXHVWLRQRIWKHULJKWWLPHLVDOVR

background image

LPSRUWDQW5HODWLRQVKLSVDUHIRUPHGDQGILUPO\HVWDEOLVKHGDFFRUGLQJWR

GHILQLWHLQQHUODZV&RPPRQH[SHULHQFHVVWUHQJWKHQWKHVHWLHVDQGKHZKR

FRPHVWRRODWHWRVKDUHLQWKHVHEDVLFH[SHULHQFHVPXVWVXIIHUIRULWLIDVD

VWUDJJOHUKHILQGVWKHGRRUORFNHG

,IDPDQKDVUHFRJQL]HGWKHQHFHVVLW\IRUXQLRQDQGGRHVQRWIHHOVWURQJ

HQRXJKWRIXQFWLRQDVWKHFHQWHULWLVKLVGXW\WREHFRPHDPHPEHURIVRPH

RWKHURUJDQLFIHOORZVKLS

7+(,0$*(

2QWKHHDUWKLVZDWHU

7KHLPDJHRI+2/',1*72*(7+(5

7KXVWKHNLQJVRIDQWLTXLW\

%HVWRZHGWKHGLIIHUHQWVWDWHVDVILHIV

$QGFXOWLYDWHGIULHQGO\UHODWLRQV

:LWKWKHIHXGDOORUGV

:DWHUILOOVXSDOOWKHHPSW\SODFHVRQWKHHDUWKDQGFOLQJVIDVWWRLW7KHVRFLDO

RUJDQL]DWLRQRIDQFLHQW&KLQDZDVEDVHGRQWKLVSULQFLSOHRIWKHKROGLQJ

WRJHWKHURIGHSHQGHQWVDQGUXOHUV:DWHUIORZVWRXQLWHZLWKZDWHUEHFDXVH

DOOSDUWVRILWDUHVXEMHFWWRWKHVDPHODZV6RWRRVKRXOGKXPDQVRFLHW\KROG

WRJHWKHUWKURXJKDFRPPXQLW\RILQWHUHVWVWKDWDOORZVHDFKLQGLYLGXDOWRIHHO

KLPVHOIDPHPEHURIDZKROH7KHFHQWUDOSRZHURIDVRFLDORUJDQL]DWLRQ

PXVWVHHWRLWWKDWHYHU\PHPEHUILQGVWKDWKLVWUXHLQWHUHVWOLHVLQKROGLQJ

WRJHWKHUZLWKLWDVZDVWKHFDVHLQWKHSDWHUQDOUHODWLRQVKLSEHWZHHQNLQJDQG

YDVVDOVLQDQFLHQW&KLQD

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

+ROGWRKLPLQWUXWKDQGOR\DOW\

7KLVLVZLWKRXWEODPH

7UXWKOLNHDIXOOHDUWKHQERZO

7KXVLQWKHHQG

*RRGIRUWXQHFRPHVIURPZLWKRXW

)XQGDPHQWDOVLQFHULW\LVWKHRQO\SURSHUEDVLVIRUIRUPLQJUHODWLRQVKLSV

7KLVDWWLWXGHV\PEROL]HGE\DIXOOHDUWKHQERZOLQZKLFKWKHFRQWHQWLV

HYHU\WKLQJDQGWKHHPSW\IRUPQRWKLQJVKRZVLWVHOIQRWLQFOHYHUZRUGVEXW

WKURXJKWKHVWUHQJWKRIZKDWOLHVZLWKLQWKHVSHDNHU7KLVVWUHQJWKLVVRJUHDW

WKDWLWKDVSRZHUWRDWWUDFWJRRGIRUWXQHWRLWVHOIIURPZLWKRXW

6L[LQWKHVHFRQGSODFHPHDQV

+ROGWRKLPLQZDUGO\

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

,IDSHUVRQUHVSRQGVSHUVHYHULQJO\DQGLQWKHULJKWZD\WRWKHEHKHVWVIURP

DERYHWKDWVXPPRQKLPWRDFWLRQKLVUHODWLRQVZLWKRWKHUVDUHLQWULQVLFDQG

background image

KHGRHVQRWORVHKLPVHOI%XWLIDPDQVHHNVDVVRFLDWLRQZLWKRWKHUVDVLIKH

ZHUHDQREVHTXLRXVRIILFHKXQWHUKHWKURZVKLPVHOIDZD\+HGRHVQRW

IROORZWKHSDWKRIWKHVXSHULRUPDQZKRQHYHUORVHVKLVGLJQLW\

6L[LQWKHWKLUGSODFHPHDQV

<RXKROGWRJHWKHUZLWKWKHZURQJSHRSOH

:HDUHRIWHQDPRQJSHRSOHZKRGRQRWEHORQJWRRXURZQVSKHUH,QWKDW

FDVHZHPXVWEHZDUHRIEHLQJGUDZQLQWRIDOVHLQWLPDF\WKURXJKIRUFHRI

KDELW1HHGOHVVWRVD\WKLVZRXOGKDYHHYLOFRQVHTXHQFHV0DLQWDLQLQJ

VRFLDELOLW\ZLWKRXWLQWLPDF\LVWKHRQO\ULJKWDWWLWXGHWRZDUGSHRSOHEHFDXVH

RWKHUZLVHZHVKRXOGQRWEHIUHHWRHQWHULQWRUHODWLRQVKLSZLWKSHRSOHRIRXU

RZQNLQGODWHURQ

6L[LQWKHIRXUWKSODFHPHDQV

+ROGWRKLPRXWZDUGO\DOVR

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

+HUHWKHUHODWLRQVZLWKDPDQZKRLVWKHFHQWHURIXQLRQDUHZHOOHVWDEOLVKHG

7KHQZHPD\DQGLQGHHGZHVKRXOGVKRZRXUDWWDFKPHQWRSHQO\%XWZH

PXVWUHPDLQFRQVWDQWDQGQRWDOORZRXUVHOYHVWREHOHGDVWUD\

ƒ1LQHLQWKHILIWKSODFHPHDQV

0DQLIHVWDWLRQRIKROGLQJWRJHWKHU

,QWKHKXQWWKHNLQJXVHVEHDWHUVRQWKUHHVLGHVRQO\

$QGIRUJRHVJDPHWKDWUXQVRIILQIURQW

7KHFLWL]HQVQHHGQRZDUQLQJ

*RRGIRUWXQH

,QWKHUR\DOKXQWVRIDQFLHQW&KLQDLWZDVFXVWRPDU\WRGULYHXSWKHJDPH

IURPWKUHHVLGHVEXWRQWKHIRXUWKWKHDQLPDOVKDGDFKDQFHWRUXQRII,I

WKH\IDLOHGWRGRWKLVWKH\KDGWRSDVVWKURXJKDJDWHEHKLQGZKLFKWKHNLQJ

VWRRGUHDG\WRVKRRW2QO\DQLPDOVWKDWHQWHUHGKHUHZHUHVKRWWKRVHWKDW

UDQRIILQIURQWZHUHSHUPLWWHGWRHVFDSH7KLVFXVWRPDFFRUGHGZLWKDNLQJO\

DWWLWXGHWKHUR\DOKXQWHUGLGQRWZLVKWRWXUQWKHFKDVHLQWRDVODXJKWHUEXW

KHOGWKDWWKHNLOOVKRXOGFRQVLVWRQO\RIWKRVHDQLPDOVZKLFKKDGVRWRVSHDN

YROXQWDULO\H[SRVHGWKHPVHOYHV

7KHUHLVGHSLFWHGKHUHDUXOHURULQIOXHQWLDOPDQWRZKRPSHRSOHDUH

DWWUDFWHG7KRVHZKRFRPHWRKLPKHDFFHSWVWKRVHZKRGRQRWFRPHDUH

DOORZHGWRJRWKHLURZQZD\+HLQYLWHGQRQHIODWWHUVQRQHDOOFRPHRI

WKHLURZQIUHHZLOO,QWKLVZD\WKHUHGHYHORSVDYROXQWDU\GHSHQGHQFH

DPRQJWKRVHZKRKROGKLP7KH\GRQRWKDYHWREHFRQVWDQWO\RQWKHLU

JXDUGEXWPD\H[SUHVVWKHLURSLQLRQVRSHQO\3ROLFHPHDVXUHVDUHQRW

QHFHVVDU\DQGWKH\FOHDYHWRWKHLUUXOHURIWKHLURZQYROLWLRQ7KHVDPH

SULQFLSOHRIIUHHGRPLVYDOLGIRUOLIHLQJHQHUDO:HVKRXOGQRWZRRIDYRU

IURPSHRSOH,IDPDQFXOWLYDWHVZLWKLQKLPVHOIWKHSXULW\DQGWKHVWUHQJWK

WKDWDUHQHFHVVDU\IRURQHZKRLVWKHFHQWHURIDIHOORZVKLSWKRVHZKRDUH

PHDQWIRUKLPFRPHRIWKHLURZQDFFRUG

background image

6L[DWWKHWRSPHDQV

+HILQGVQRKHDGIRUKROGLQJWRJHWKHU

0LVIRUWXQH

7KHKHDGLVWKHEHJLQQLQJ,IWKHEHJLQQLQJLVQRWULJKWWKHUHLVQRKRSHRID

ULJKWHQGLQJ,IZHKDYHPLVVHGWKHULJKWPRPHQWIRUXQLRQDQGJRRQ

KHVLWDWLQJWRJLYHFRPSOHWHDQGIXOOGHYRWLRQZHVKDOOUHJUHWWKHHUURUZKHQ

LWLVWRRODWH

LQGH[

+VLDR&KX7KH7DPLQJ3RZHURIWKH6PDOO

DERYH6817+(*(17/(:,1'

EHORZ&+,(17+(&5($7,9(+($9(1

7KLVKH[DJUDPPHDQVWKHIRUFHRIWKHVPDOOWKHSRZHURIWKHVKDGRZ\WKDW

UHVWUDLQVWDPHVLPSHGHV$ZHDNOLQHLQWKHIRXUWKSODFHWKDWRIWKH

PLQLVWHUKROGVWKHILYHVWURQJOLQHVLQFKHFN,QWKH,PDJHLWLVWKHZLQG

EORZLQJDFURVVWKHVN\7KHZLQGUHVWUDLQVWKHFORXGVWKHULVLQJEUHDWKRIWKH

&UHDWLYHDQGPDNHVWKHPJURZGHQVHEXWDV\HWLVQRWVWURQJHQRXJKWRWXUQ

WKHPWRUDLQ7KHKH[DJUDPSUHVHQWVDFRQILJXUDWLRQRIFLUFXPVWDQFHVLQ

ZKLFKDVWURQJHOHPHQWLVWHPSRUDULO\KHOGLQOHDVKE\DZHDNHOHPHQW,WLV

RQO\WKURXJKJHQWOHQHVVWKDWWKLVFDQKDYHDVXFFHVVIXORXWFRPH

7+(-8'*0(17

7+(7$0,1*32:(52)7+(60$//

+DVVXFFHVV

'HQVHFORXGVQRUDLQIURPRXUZHVWHUQUHJLRQ

7KLVLPDJHUHIHUVWRWKHVWDWHRIDIIDLUVLQ&KLQDDWWKHWLPHZKHQ.LQJ:rQ

ZKRFDPHRULJLQDOO\IURPWKHZHVWZDVLQWKHHDVWDWWKHFRXUWRIWKHUHLJQLQJ

W\UDQW&KRX+VLQ7KHPRPHQWIRUDFWLRQRQDODUJHVFDOHKDGQRW\HW

DUULYHG.LQJ:rQFRXOGRQO\NHHSWKHW\UDQWVRPHZKDWLQFKHFNE\IULHQGO\

SHUVXDVLRQ+HQFHWKHLPDJHRIPDQ\FORXGVSURPLVLQJPRLVWXUHDQG

EOHVVLQJWRWKHODQGDOWKRXJKDV\HWQRUDLQIDOOV7KHVLWXDWLRQLVQRW

XQIDYRUDEOHWKHUHLVDSURVSHFWRIXOWLPDWHVXFFHVVEXWWKHUHDUHVWLOO

REVWDFOHV

LQWKHZD\DQGZHFDQPHUHO\WDNHSUHSDUDWRU\PHDVXUHV2QO\WKURXJKWKH

VPDOOPHDQVRIIULHQGO\SHUVXDVLRQFDQZHH[HUWDQ\LQIOXHQFH7KHWLPHKDV

QRW\HWFRPHIRUVZHHSLQJPHDVXUHV+RZHYHUZHPD\EHDEOHWRDOLPLWHG

H[WHQWWRDFWDVDUHVWUDLQLQJDQGVXEGXLQJLQIOXHQFH7RFDUU\RXWRXU

SXUSRVHZHQHHGILUPGHWHUPLQDWLRQZLWKLQDQGJHQWOHQHVVDQGDGDSWDELOLW\

background image

LQH[WHUQDOUHODWLRQV

7+(,0$*(

7KHZLQGGULYHVDFURVVKHDYHQ

7KHLPDJHRI7+(7$0,1*32:(52)7+(60$//

7KXVWKHVXSHULRUPDQ

5HILQHVWKHRXWZDUGDVSHFWRIKLVQDWXUH

7KHZLQGFDQLQGHHGGULYHWKHFORXGVWRJHWKHULQWKHVN\\HWEHLQJQRWKLQJ

EXWDLUZLWKRXWVROLGERG\LWGRHVQRWSURGXFHJUHDWRUODVWLQJHIIHFWV6RDOVR

DQLQGLYLGXDOLQWLPHVZKHQKHFDQSURGXFHQRJUHDWHIIHFWLQWKHRXWHU

ZRUOGFDQGRQRWKLQJH[FHSWUHILQHWKHH[SUHVVLRQRIKLVQDWXUHLQVPDOO

ZD\V

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

5HWXUQWRWKHZD\

+RZFRXOGWKHUHEHEODPHLQWKLV"

*RRGIRUWXQH

,WOLHVLQWKHQDWXUHRIDVWURQJPDQWRSUHVVIRUZDUG,QVRGRLQJKH

HQFRXQWHUVREVWUXFWLRQV7KHUHIRUHKHUHWXUQVWRWKHZD\VXLWHGWRKLV

VLWXDWLRQZKHUHKHLVIUHHWRDGYDQFHRUWRUHWUHDW,QWKHQDWXUHRIWKLQJV

WKLVZLOOEULQJJRRGIRUWXQHIRULWLVZLVHDQGUHDVRQDEOHQRWWRWU\WRREWDLQ

DQ\WKLQJE\IRUFH

1LQHLQWKHVHFRQGSODFHPHDQV

+HDOORZVKLPVHOIWREHGUDZQLQWRUHWXUQLQJ

*RRGIRUWXQH

2QHZRXOGOLNHWRSUHVVIRUZDUGEXWEHIRUHJRLQJIDUWKHURQHVHHVIURPWKH

H[DPSOHRIRWKHUVOLNHRQHVHOIWKDWWKLVZD\LVEORFNHG,QVXFKDFDVHLIWKH

HIIRUWWRSXVKIRUZDUGLVQRWLQKDUPRQ\ZLWKWKHWLPHDUHDVRQDEOHDQG

UHVROXWHPDQZLOOQRWH[SRVHKLPVHOIWRDSHUVRQDOUHEXIIEXWZLOOUHWUHDW

ZLWKRWKHUVRIOLNHPLQG7KLVEULQJVJRRGIRUWXQHEHFDXVHKHGRHVQRW

QHHGOHVVO\MHRSDUGL]HKLPVHOI

1LQHLQWKHWKLUGSODFHPHDQV

7KHVSRNHVEXUVWRXWRIWKHZDJRQZKHHOV

0DQDQGZLIHUROOWKHLUH\HV

+HUHDQDWWHPSWLVPDGHWRSUHVVIRUZDUGIRUFLEO\LQWKHFRQVFLRXVQHVVWKDW

WKHREVWUXFWLQJSRZHULVVOLJKW%XWVLQFHXQGHUWKHFLUFXPVWDQFHVSRZHU

DFWXDOO\OLHVZLWKWKHZHDNWKLVVXGGHQRIIHQVLYHLVGRRPHGWRIDLOXUH

([WHUQDOFRQGLWLRQVKLQGHUWKHDGYDQFHMXVWDVORVVRIWKHZKHHOVSRNHVVWRSV

WKHSURJUHVVRIDZDJRQ:HGRQRW\HWKHHGWKLVKLQWIRUPIDWHKHQFHWKHUH

background image

DUHDQQR\LQJDUJXPHQWVOLNHWKRVHRIDPDUULHGFRXSOH1DWXUDOO\WKLVLVQRW

DIDYRUDEOHVWDWHRIWKLQJIRUWKRXJKWKHVLWXDWLRQPD\HQDEOHWKHZHDNHUVLGH

WRKROGLWVJURXQGWKHGLIILFXOWLHVDUHWRRQXPHURXVWRSHUPLWRIDKDSS\

UHVXOW,QFRQVHTXHQFHHYHQWKHVWURQJPDQFDQQRWVRXVHKLVSRZHUDVWR

H[HUWWKHULJKWLQIOXHQFHRQWKRVHDURXQGKLP+HH[SHULHQFHVDUHEXIIZKHUH

KHH[SHFWHGDQHDV\YLFWRU\DQGKHWKXVFRPSURPLVHVKLVGLJQLW\

ƒ6L[LQWKHIRXUWKSODFHPHDQV

,I\RXDUHVLQFHUHEORRGYDQLVKHVDQGIHDUJLYHVZD\

1REODPH

,IRQHLVLQWKHGLIILFXOWDQGUHVSRQVLEOHSRVLWLRQRIFRXQVHORUWRDSRZHUIXO

PDQRQVKRXOGUHVWUDLQKLPLQVXFKDZD\WKDWWKHWKUHDWRIDFWXDOEORRGVKHG

PD\DULVH1RQHWKHOHVVWKHSRZHURIGLVLQWHUHVWHGWUXWKLVJUHDWHUWKDQDOO

WKHVHVREVWDFOHV,WFDUULHVVXFKZHLJKWWKDWWKHHQGLVDFKLHYHGDQGDOO

GDQJHU

RIEORRGVKHGDQGDOOIHDUGLVDSSHDU

ƒ1LQHLQWKHILIWKSODFHPHDQV

,I\RXDUHVLQFHUHDQGOR\DOO\DWWDFKHG

<RXDUHULFKLQ\RXUQHLJKERU

/R\DOW\OHDGVWRILUPWLHVEHFDXVHLWPHDQVWKDWHDFKSDUWQHUFRPSOHPHQWVWKH

RWKHU,QWKHZHDNHUSHUVRQOR\DOW\FRQVLVWVLQGHYRWLRQLQWKHVWURQJHULW

FRQVLVWVLQWUXVWZRUWKLQHVV7KLVUHODWLRQRIPXWXDOUHLQIRUFHPHQWOHDGVWRD

WUXHZHDOWKWKDWLVDOOWKHPRUHDSSDUHQWEHFDXVHLWLVQRWVHOILVKO\KRDUGHG

EXWLVVKDUHGZLWKIULHQGV3OHDVXUHVKDUHGLVSOHDVXUHGRXEOHG

1LQHDWWKHWRSPHDQV

7KHUDLQFRPHVWKHUHLVUHVW

7KLVLVGXHWRWKHODVWLQJHIIHFWRIFKDUDFWHU

3HUVHYHUDQFHEULQJVWKHZRPDQLQWRGDQJHU

7KHPRRQLVQHDUO\IXOO

,IWKHVXSHULRUPDQSHUVLVWV

0LVIRUWXQHFRPHV

6XFFHVVLVDWKDQG7KHZLQGKDVGULYHQXSWKHUDLQ$IL[HGVWDQGSRLQWKDV

EHHQUHDFK7KLVKDVFRPHDERXWWKURXJKWKHFXPXODWLRQRIVPDOOHIIHFWV

SURGXFHGE\UHYHUHQFHIRUDVXSHULRUFKDUDFWHU%XWDVXFFHVVWKXVVHFXUHGELW

E\ELWFDOOVIRUJUHDWFDXWLRQ,WZRXOGEHDGDQJHURXVLOOXVLRQIRUDQ\RQHWR

WKLQNKHFRXOGSUHVXPHXSRQLW7KHIHPDOHSULQFLSOHWKHZHDNHOHPHQW

WKDWKDVZRQWKHYLFWRU\VKRXOGQHYHUSHUVLVWLQYDXQWLQJLWWKDWZRXOGOHDG

WRGDQJHU7KHGDUNSRZHULQWKHPRRQLVVWURQJHVWZKHQWKHPRRQLV

DOPRVWIXOO:KHQLWLVIXOODQGGLUHFWO\RSSRVLWHWKHVXQLWVZDQLQJLV

LQHYLWDEOH8QGHUVXFKFLUFXPVWDQFHVRQHPXVWEHFRQWHQWZLWKZKDWKDV

EHHQDFKLHYHG7RDGYDQFHDQ\IXUWKHUEHIRUHWKHDSSURSULDWHWLPHKDV

FRPHZRXOGOHDGWRPLVIRUWXQH

LQGH[

background image

/7UHDGLQJ>FRQGXFW@

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ78,7+(-2<286/$.(

7KHQDPHRIWKHKH[DJUDPPHDQVRQWKHRQHKDQGWKHULJKWZD\RI

FRQGXFWLQJRQHVHOI+HDYHQWKHIDWKHULVDERYHDQGWKHODNHWKH\RXQJHVW

GDXJKWHULVEHORZ7KLVVKRZVWKHGLIIHUHQFHEHWZHHQKLJKDQGORZXSRQ

ZKLFKFRPSRVXUHFRUUHFWVRFLDOFRQGXFWGHSHQGV2QWKHRWKHUKDQGWKH

ZRUGIRUWKHQDPHRIWKHKH[DJUDP75($',1*PHDQVOLWHUDOO\WUHDGLQJ

XSRQVRPHWKLQJ7KHVPDOODQGFKHHUIXO>7XL@WUHDGVXSRQWKHODUJHDQG

VWURQJ>&KLHQ@7KHGLUHFWLRQRIPRYHPHQWRIWKHWZRSULPDU\WULJUDPVLV

XSZDUG7KHIDFWWKDWWKHVWURQJWUHDGVRQWKHZHDNLVQRWPHQWLRQHGLQWKH

%RRNRI&KDQJHVEHFDXVHLWLVWDNHQIRUJUDQWHG)RUWKHZHDNWRWDNHD

VWDQG

DJDLQVWWKHVWURQJLVQRWGDQJHURXVKHUHEHFDXVHLWKDSSHQHGLQJRRGKXPRU

>7XL@DQGZLWKRXWSUHVXPSWLRQVRWKDWWKHVWURQJPDQLVQRWLUULWDWHGEXW

WDNHVLWDOOLQJRRGSDUW

7+(-8'*0(17

75($',1*7UHDGLQJXSRQWKHWDLORIWKHWLJHU

,WGRHVQRWELWHWKHPDQ6XFFHVV

7KHVLWXDWLRQLVUHDOO\GLIILFXOW7KDWZKLFKLVVWURQJHVWDQGWKDWZKLFKLV

ZHDNHVWDUHFORVHWRJHWKHU7KHZHDNIROORZVEHKLQGWKHVWURQJDQGZRUULHV

LW7KHVWURQJKRZHYHUDFTXLHVFHVDQGGRHVQRWKXUWWKHZHDNEHFDXVHWKH

FRQWDFWLVLQJRRIKXPRUDQGKDUPOHVV

,QWHUPVRIDKXPDQVLWXDWLRQRQHLVKDQGOLQJZLOGLQWUDFWDEOHSHRSOH,Q

VXFKDFDVHRQHVSXUSRVHZLOOEHDFKLHYHGLIRQHEHKDYHVZLWKGHFRUXP

3OHDVDQWPDQQHUVVXFFHHGHYHQZLWKLUULWDEOHSHRSOH

7+(,0$*(

+HDYHQDERYHWKHODNHEHORZ

7KHLPDJHRI75($',1*

7KXVWKHVXSHULRUPDQGLVFULPLQDWHVEHWZHHQKLJKDQGORZ

$QGWKHUHE\IRUWLILHVWKHWKLQNLQJRIWKHSHRSOH

+HDYHQDQGWKHODNHVKRZDGLIIHUHQFHRIHOHYDWLRQWKDWLQKHUHVLQWKH

QDWXUHVRIWKHWZRKHQFHQRHQY\DULVHV$PRQJPDQNLQGDOVRWKHUHDUH

QHFHVVDULO\GLIIHUHQFHVRIHOHYDWLRQLWLVLPSRVVLEOHWREULQJDERXWXQLYHUVDO

HTXDOLW\%XWLWLVLPSRUWDQWWKDWGLIIHUHQFHVLQVRFLDOUDQNVKRXOGQRWEH

DUELWUDU\DQGXQMXVWIRULIWKLVRFFXUVHQY\DQGFODVVVWUXJJOHDUHWKH

background image

LQHYLWDEOHFRQVHTXHQFHV,IRQWKHRWKHUKDQGH[WHUQDOGLIIHUHQFHVLQUDQN

FRUUHVSRQGZLWKGLIIHUHQFHVLQLQQHUZRUWKDQGLILQQHUZRUWKIRUPVWKH

FULWHULRQRIH[WHUQDOUDQNSHRSOHDFTXLHVFHDQGRUGHUUHLJQVLQVRFLHW\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

6LPSOHFRQGXFW3URJUHVVZLWKRXWEODPH

7KHVLWXDWLRQLVRQHLQZKLFKZHDUHVWLOOQRWERXQGE\DQ\REOLJDWLRQVRI

VRFLDOLQWHUFRXUVH,IRXUFRQGXFWLVVLPSOHZHUHPDLQIUHHRIWKHP:HFDQ

TXLHWO\IROORZRXUSUHGLOHFWLRQVDVORQJDVZHDUHFRQWHQWDQGPDNHQRW

GHPDQGVRQSHRSOH

7KHPHDQLQJRIWKHKH[DJUDPLVQRWVWDQGVWLOOEXWSURJUHVV$PDQILQGV

KLPVHOILQDQDOWRJHWKHULQIHULRUSRVLWLRQDWWKHVWDUW+RZHYHUKHKDVWKH

LQQHUVWUHQJWKWKDWJXDUDQWHHVSURJUHVV,IKHFDQEHFRQWHQWZLWKVLPSOLFLW\

KHFDQPDNHSURJUHVVZLWKRXWEODPH:KHQDPDQLVGLVVDWLVILHGZLWK

PRGHVWFLUFXPVWDQFHVKHLVUHVWOHVVDQGDPELWLRXVDQGWULHVWRDGYDQFHQRW

IRUWKHVDNHRIDFFRPSOLVKLQJDQ\WKLQJZRUWKZKLOHEXWPHUHO\LQRUGHUWR

HVFDSHIURPORZOLQHVVDQGSRYHUW\E\GLQWRIKLVFRQGXFW2QFHKLVSXUSRVHLV

DFKLHYHGKHLVFHUWDLQWREHFRPHDUURJDQWDQGOX[XU\ORYLQJ7KHUHIRUH

EODPHDWWDFKHVWRKLVSURJUHVV2QWKHRWKHUKDQGDPDQZKRLVJRRGDWKLV

ZRUNLVFRQWHQWWREHKDYHVLPSO\+HZLVKHVWRPDNHSURJUHVVLQRUGHUWR

DFFRPSOLVKVRPHWKLQJ:KHQKHDWWDLQVKLVJRDOKHGRHVVRPHWKLQJZRUWK

ZKLOHDQDOOLVZHOO

1LQHLQWKHVHFRQGSODFHPHDQV

7UHDGLQJDVPRRWKOHYHOFRXUVH

7KHSHUVHYHUDQFHRIDGDUNPDQ

%ULQJVJRRGIRUWXQH

7KHVLWXDWLRQRIDORQHO\VDJHLVLQGLFDWHGKHUH+HUHPDLQVZLWKGUDZQIURP

WKHEXVWOHRIOLIHVHHNVQRWKLQJDVNVQRWKLQJRIDQ\RQHDQGWUDYHOVWKURXJK

OLIHXQDVVDLOHGRQDOHYHOURDG6LQFHKHLVFRQWHQWDQGGRHVQRWFKDOOHQJH

IDWHKHUHPDLQVIUHHRIHQWDQJOHPHQWV

ƒ6L[LQWKHWKLUGSODFHPHDQV

$RQHH\HGPDQLVDEOHWRVHH

$ODPHPDQLVDEOHWRWUHDG

+HWUHDGVRQWKHWDLORIWKHWLJHU

7KHWLJHUELWHVWKHPDQ

0LVIRUWXQH

7KXVGRHVDZDUULRUDFWRQEHKDOIRIKLVJUHDWSULQFH

$RQHH\HGPDQFDQLQGHHGVHHEXWQRWHQRXJKIRUFOHDUYLVLRQ$ODPH

PDQFDQLQGHHGWUHDWEXWQRWHQRXJKWRPDNHSURJUHVV,ILQVSLWHRIVXFK

GHIHFWVDPDQFRQVLGHUVKLPVHOIVWURQJDQGFRQVHTXHQWO\H[SRVHVKLPVHOIWR

GDQJHUKHLVLQYLWLQJGLVDVWHUIRUKHLVXQGHUWDNLQJVRPHWKLQJEH\RQGKLV

background image

VWUHQJWK7KLVUHFNOHVVZD\RISOXQJLQJDKHDGUHJDUGOHVVRIWKHDGHTXDF\RI

RQHVSRZHUVFDQEHMXVWLILHGRQO\LQWKHFDVHRIDZDUULRUEDWWOLQJIRUKLV

SULQFH

1LQHLQWKHIRXUWKSODFHPHDQV

+HWUHDGVRQWKHWDLORIWKHWLJHU

&DXWLRQDQGFLUFXPVSHFWLRQ

/HDGXOWLPDWHO\WRJRRGIRUWXQH

7KLVWH[WUHIHUVWRDGDQJHURXVHQWHUSULVH7KHLQQHUSRZHUWRFDUU\LWWKURXJK

LVWKHUHEXWWKLVLQQHUSRZHULVFRPELQHGZLWKKHVLWDWLQJFDXWLRQLQRQHV

H[WHUQDODWWLWXGH7KLVOLQHFRQWUDVWVZLWKWKHSUHFHGLQJOLQHZKLFKLVZHDN

ZLWKLQEXWRXWZDUGO\SUHVVHVIRUZDUG+HUHRQHLVVXUHRIXOWLPDWHVXFFHVV

ZKLFKFRQVLVWVLQDFKLHYLQJRQHVSXUSRVHWKDWLVLQRYHUFRPLQJGDQJHUE\

JRLQJIRUZDUG

ƒ1LQHLQWKHILIWKSODFHPHDQV

5HVROXWHFRQGXFW

3HUVHYHUDQFHZLWKDZDUHQHVVRIGDQJHU

7KLVUHIHUVWRWKHUXOHURIWKHKH[DJUDPDVDZKROH2QHVHHVWKDWRQHKDVWR

EHUHVROXWHLQFRQGXFW%XWDWWKHVDPHWLPHRQHPXVWUHPDLQFRQVFLRXVRI

WKHGDQJHUFRQQHFWHGZLWKVXFKUHVROXWHQHVVHVSHFLDOO\LILWLVWREH

SHUVHYHUHGLQ2QO\DZDUHQHVVRIWKHGDQJHUPDNHVVXFFHVVSRVVLEOH

1LQHDWWKHWRSPHDQV

/RRNWR\RXUFRQGXFWDQGZHLJKWKHIDYRUDEOHVLJQV

:KHQHYHU\WKLQJLVIXOILOOHGVXSUHPHJRRGIRUWXQHFRPHV

7KHZRUNLVHQGHG,IZHZDQWWRNQRZZKHWKHUJRRGIRUWXQHZLOOIROORZZH

PXVWORRNEDFNXSRQRXUFRQGXFWDQGLWVFRQVHTXHQFHV,IWKHHIIHFWVDUH

JRRG

WKHQJRRGIRUWXQHLVFHUWDLQ1RRQHNQRZVKLPVHOI,WLVRQO\E\WKH

FRQVHTXHQFHVRIKLVDFWLRQVE\WKHIUXLWRIKLVODERUVWKDWDPDQFDQMXGJH

ZKDWKHLVWRH[SHFW

LQGH[

7DL3HDFH

DERYH.817+(5(&(37,9(($57+

EHORZ&+,(17+(&5($7,9(+($9(1

7KH5HFHSWLYHZKLFKPRYHVGRZQZDUGVWDQGVDERYHWKH&UHDWLYHZKLFK

PRYHVXSZDUGLVEHORZ+HQFHWKHLULQIOXHQFHVPHHWDQGDUHLQKDUPRQ\

background image

VRWKDWDOOOLYLQJWKLQJVEORRPDQGSURVSHU7KLVKH[DJUDPEHORQJVWRWKH

ILUVWPRQWK)HEUXDU\0DUFKDWZKLFKWLPHWKHIRUFHVRIQDWXUHSUHSDUHWKH

QHZVSULQJ

7+(-8'*0(17

3($&(7KHVPDOOGHSDUWV

7KHJUHDWDSSURDFKHV

*RRGIRUWXQH6XFFHVV

7KLVKH[DJUDPGHQRWHVDWLPHLQQDWXUHZKHQKHDYHQVHHPVWREHRQHDUWK

+HDYHQKDVSODFHGLWVHOIEHQHDWKWKHHDUWKDQGVRWKHLUSRZHUVXQLWHLQGHHS

KDUPRQ\7KHQSHDFHDQGEOHVVLQJGHVFHQGXSRQDOOOLYLQJWKLQJV

,QWKHZRUOGRIPDQLWLVDWLPHRIVRFLDOKDUPRQ\WKRVHLQKLJKSODFHV

VKRZIDYRUWRWKHORZO\DQGWKHORZO\DQGLQIHULRULVDQHQGWRDOOIHXGV

,QVLGHDWWKHFHQWHULQWKHNH\SRVLWLRQLVWKHOLJKWSULQFLSOHWKHGDUN

SULQFLSOHLVRXWVLGH7KXVWKHOLJKWKDVDSRZHUIXOLQIOXHQFHZKLOHWKHGDUN

LVVXEPLVVLYH,QWKLVZD\HDFKUHFHLYHVLWVGXH:KHQWKHJRRGHOHPHQWVRI

VRFLHW\RFFXS\DFHQWUDOSRVLWLRQDQGDUHLQFRQWUROWKHHYLOHOHPHQWVFRPH

XQGHUWKHLULQIOXHQFHDQGFKDQJHIRUWKHEHWWHU:KHQWKHVSLULWRIKHDYHQ

UXOHVLQPDQKLVDQLPDOQDWXUHDOVRFRPHVXQGHULWVLQIOXHQFHDQGWDNHVLWV

DSSURSULDWHSODFH

7KHLQGLYLGXDOOLQHVHQWHUWKHKH[DJUDPIURPEHORZDQGOHDYHLWDJDLQDW

WKHWRS+HUHWKHVPDOOZHDNDQGHYLOHOHPHQWVDUHDERXWWRWDNHWKHLU

GHSDUWXUHZKLOHWKHJUHDWVWURQJDQGJRRGHOHPHQWVDUHPRYLQJXS7KLV

EULQJVJRRGIRUWXQHDQGVXFFHVV

7+(,0$*(

+HDYHQDQGHDUWKXQLWHWKHLPDJHRI3($&(

7KXVWKHUXOHU

'LYLGHVDQGFRPSOHWHVWKHFRXUVHRIKHDYHQDQGHDUWK

$QGVRDLGVWKHSHRSOH

+HDYHQDQGHDUWKDUHLQFRQWDFWDQGFRPELQHWKHLULQIOXHQFHVSURGXFLQJD

WLPHRIXQLYHUVDOIORZHULQJDQGSURVSHULW\7KLVVWUHDPRIHQHUJ\PXVWEH

UHJXODWHGE\WKHUXOHURIPHQ,WLVGRQHE\DSURFHVVRIGLYLVLRQ7KXVPHQ

GLYLGHWKHXQLIRUPIORZRIWLPHLQWRWKHVHDVRQVDFFRUGLQJWRWKHVXFFHVVLRQ

RIQDWXUDOSKHQRPHQDDQGPDUNRIILQILQLWHVSDFHE\WKHSRLQWVRIWKH

FRPSDVV,QWKLVZD\QDWXUHLQLWVRYHUZKHOPLQJSURIXVLRQRISKHQRPHQDLV

ERXQGHGDQGFRQWUROOHG2QHWKHRWKHUKDQGQDWXUHPXVWEHIXUWKHUHGLQ

KHUSURGXFWLYHQHVV7KLVLVGRQHE\DGMXVWLQJWKHSURGXFWVWRWKHULJKWWLPH

DQGWKHULJKWSODFHZKLFKLQFUHDVHVWKHQDWXUDO\LHOG7KLVFRQWUROOLQJDQG

IXUWKHULQJDFWLYLW\RIPDQLQKLVUHODWLRQWRQDWXUHLVWKHZRUNRQQDWXUHWKDW

UHZDUGVKLP

7+(/,1(6

background image

1LQHDWWKHEHJLQQLQJPHDQV

:KHQULEERQJUDVVLVSXOOHGXSWKHVRGFRPHVZLWKLW

(DFKDFFRUGLQJWRKLVNLQG

8QGHUWDNLQJVEULQJJRRGIRUWXQH

,QWLPHVRISURVSHULW\HYHU\DEOHPDQFDOOHGWRILOODQRIILFHGUDZVOLNHPLQGHG

SHRSOHDORQJZLWKKLPMXVWDVLQSXOOLQJXSULEERQJUDVVRQHDOZD\VSXOOVXS

DEXQFKRILWEHFDXVHWKHVWDONVDUHFRQQHFWHGE\WKHLUURRWV,QVXFKWLPHV

ZKHQLWLVSRVVLEOHWRH[WHQGLQIOXHQFHZLGHO\WKHPLQGRIDQDEOHPDQLVVHW

XSRQJRLQJRXWLQWROLIHDQGDFFRPSOLVKLQJVRPHWKLQJ

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

%HDULQJZLWKWKHXQFXOWXUHGLQJHQWOHQHVV

)RUGLQJWKHULYHUZLWKUHVROXWLRQ

1RWQHJOHFWLQJZKDWLVGLVWDQW

1RWUHJDUGLQJRQHVFRPSDQLRQV

7KXVRQHPD\PDQDJHWRZDONLQWKHPLGGOH

,QWLPHVRISURVSHULW\LWLVLPSRUWDQWDQGDERYHDOOWRSRVVHVVHQRXJK

JUHDWQHVVRIVRXOWREHDUZLWKLPSHUIHFWSHRSOH)RULQWKHKDQGVRIDJUHDW

PDVWHUQRPDWHULDOLVXQSURGXFWLYHKHFDQILQGXVHIRUHYHU\WKLQJ%XWWKLV

JHQHURVLW\LVE\QRPHDQVOD[LW\RUZHDNQHVV,WLVGXULQJWLPHVRISURVSHULW\

HVSHFLDOO\WKDWZHPXVWDOZD\VEHUHDG\WRULVNHYHQGDQJHURXVXQGHUWDNLQJV

VXFKDVWKHFURVVLQJRIDULYHULIWKH\DUHQHFHVVDU\6RWRRZHPXVWQRW

QHJOHFWZKDWLVGLVWDQWEXWPXVWDWWHQGVFUXSXORXVO\WRHYHU\WKLQJ

)DFWLRQDOLVPDQGWKHGRPLQDQFHRIFOLTXHVDUHHVSHFLDOO\WREHDYRLGHG(YHQ

LISHRSOHRIOLNHPLQGFRPHIRUZDUGWRJHWKHUWKH\RXJKWQRWWRIRUPDIDFWLRQ

E\KROGLQJWRJHWKHUIRUPXWXDODGYDQWDJHLQVWHDGHDFKPDQVKRXOGGRLV

GXW\7KHVHVDUHIRXUZD\VLQZKLFKRQHFDQRYHUFRPHWKHKLGGHQGDQJHURI

DJUDGXDOVODFNHQLQJWKDWDOZD\VOXUNVLQDQ\WLPHRISHDFH$QGWKDWLVKRZ

RQHILQGVWKHPLGGOHZD\IRUDFWLRQ

1LQHLQWKHWKLUGSODFHPHDQV

1RSODLQQRWIROORZHGE\DVORSH

1RJRLQJQRWIROORZHGE\DUHWXUQ

+HZKRUHPDLQVSHUVHYHULQJLQGDQJHU

,VZLWKRXWEODPH

'RQRWFRPSODLQDERXWWKLVWUXWK

(QMR\WKHJRRGIRUWXQH\RXVWLOOSRVVHVV

(YHU\WKLQJRQHDUWKLVVXEMHFWWRFKDQJH3URVSHULW\LVIROORZHGE\GHFOLQH

WKLVLVWKHHWHUQDOODZRQHDUWK(YLOFDQLQGHHGEHKHOGLQFKHFNEXWQRW

SHUPDQHQWO\DEROLVKHG,WDOZD\VUHWXUQV7KLVFRQYLFWLRQPLJKWLQGXFW

PHODQFKRO\EXWLWVKRXOGQRWLWRXJKWRQO\WRNHHSXVIURPIDOOLQJLQWR

LOOXVLRQZKHQJRRGIRUWXQHFRPHVWRXV,IZHFRQWLQXHPLQGIXORIWKH

GDQJHUZHUHPDLQSHUVHYHULQJDQGPDNHQRPLVWDNHV$VORQJDVDPDQV

LQQHUQDWXUHUHPDLQVVWURQJHUDQGULFKHUWKDQDQ\WKLQJRIIHUHGE\H[WHUQDO

background image

IRUWXQHDVORQJDVKHUHPDLQVLQZDUGO\VXSHULRUWRIDWHIRUWXQHZLOOQRW

GHVHUWKLP

6L[LQWKHIRXUWKSODFHPHDQV

+HIOXWWHUVGRZQQRWERDVWLQJRIKLVZHDOWK

7RJHWKHUZLWKKLVQHLJKERU

*XLOHOHVVDQGVLQFHUH

,QWLPHVRIPXWXDOFRQILGHQFHSHRSOHRIKLJKUDQNFRPHLQFORVHFRQWDFWZLWK

WKHORZO\TXLWHVLPSO\DQGZLWKRXWERDVWLQJRIWKHLUZHDOWK7KLVLVQRWGXH

WRWKHIRUFHRIFLUFXPVWDQFHVEXWFRUUHVSRQGVZLWKWKHLULQPRVWVHQWLPHQW

7KHDSSURDFKLVPDGHTXLWHVSRQWDQHRXVO\EHFDXVHLWLVEDVHGRQLQQHU

FRQYLFWLRQ

ƒ6L[LQWKHILIWKSODFHPHDQV

7KHVRYHUHLJQ,

*LYHVKLVGDXJKWHULQPDUULDJH

$QGVXSUHPHJRRGIRUWXQH

7KHVRYHUHLJQ,LV7DQJWKH&RPSOHWHU%\KLVGHFUHHWKHLPSHULDOSULQFHVVHV

DOWKRXJKKLJKHULQUDQNWKDQWKHLUKXVEDQGVKDGWRREH\WKHPOLNHDOORWKHU

ZLYHV+HUHWRRZHDUHVKRZQDWUXO\PRGHVWXQLRQRIKLJKDQGORZWKDW

EULQJVKDSSLQHVVDQGEOHVVLQJV

6L[DWWKHWRSPHDQV

7KHZDOOIDOOVEDFNLQWRWKHPRDW

8VHQRDUP\QRZ

0DNH\RXUFRPPDQGVNQRZQZLWKLQ\RXURZQWRZQ

3HUVHYHUDQFHEULQJVKXPLOLDWLRQ

7KHFKDQJHDOOXGHGWRLQWKHPLGGOHRIWKHKH[DJUDPKDVEHJXQWRWDNHSODFH

7KHZDOORIWKHWRZQVLQNVEDFNLQWRWKHPRDWIURPZKLFKLWZDVGXJ7KH

KRXURIGRRPLVDWKDQG:KHQPDWWHUVKDYHFRPHWRWKLVSDVVZHVKRXOG

VXEPLWWRIDWHDQGQRWWU\WRVWDYHLWRIIE\YLROHQWUHVLVWDQFH7KHRQH

UHFRXUVHOHIWXVLVWRKROGRXURZQZLWKLQRXULQWLPDWHFLUFOH6KRXOGZH

SHUVHYHUHLQWU\LQJWRUHVLVWWKHHYLOLQWKHXVXDOZD\RXUFROODSVHZRXOGRQO\

EHPRUHFRPSOHWHDQGKXPLOLDWLRQZRXOGEHWKHUHVXOW

LQGH[

3L6WDQGVWLOO>6WDJQDWLRQ@

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ.817+(5(&(37,9(($57+

background image

7KLVKH[DJUDPLVWKHRSSRVLWHRIWKHSUHFHGLQJRQH+HDYHQLVDERYH

GUDZLQJIDUWKHUDQGIDUWKHUDZD\ZKLOHWKHHDUWKEHORZVLQNVIDUWKHULQWRWKH

GHSWKV7KHFUHDWLYHSRZHUVDUHQRWLQUHODWLRQ,WLVDWLPHRIVWDQGVWLOODQG

GHFOLQH7KLVKH[DJUDPLVOLQNHGZLWKWKHVHYHQWKPRQWK$XJXVW

6HSWHPEHUZKHQWKH\HDUKDVSDVVHGLWV]HQLWKDQGDXWXPQDOGHFD\LV

VHWWLQJ

LQ

7+(-8'*0(17

67$1'67,//(YLOSHRSOHGRQRWIXUWKHU

7KHSHUVHYHUDQFHRIWKHVXSHULRUPDQ

7KHJUHDWGHSDUWVWKHVPDOODSSURDFKHV

+HDYHQDQGHDUWKDUHRXWRIFRPPXQLRQDQGDOOWKLQJVDUHEHQXPEHG:KDW

LVDERYHKDVQRUHODWLRQWRZKDWLVEHORZDQGRQHDUWKFRQIXVLRQDQG

GLVRUGHUSUHYDLO7KHGDUNSRZHULVZLWKLQWKHOLJKWSRZHULVZLWKRXW

:HDNQHVVLVZLWKLQKDUVKQHVVZLWKRXW:LWKLQDUHWKHLQIHULRUDQG

ZLWKRXWDUHWKHVXSHULRU7KHZD\RILQIHULRUSHRSOHLVLQDVFHQWWKHZD\RI

VXSHULRUSHRSOHLVRQHWKHGHFOLQH%XWWKHVXSHULRUSHRSOHGRQRWDOORZ

WKHPVHOYHVWREHWXUQHGIURPWKHLUSULQFLSOHV,IWKHSRVVLELOLW\RIH[HUWLQJ

LQIOXHQFHLVFORVHGWRWKHPWKH\QHYHUWKHOHVVUHPDLQIDLWKIXOWRWKHLU

SULQFLSOHVDQGZLWKGUDZLQWRVHFOXVLRQ

7+(,0$*(

+HDYHQDQGHDUWKGRQRWXQLWH

7KHLPDJHRI67$1'67,//

7KXVWKHVXSHULRUPDQIDOOVEDFNXSRQKLVLQQHUZRUWK

,QRUGHUWRHVFDSHWKHGLIILFXOWLHV

+HGRHVQRWSHUPLWKLPVHOIWREHKRQRUHGZLWKUHYHQXH

:KHQRZLQJWRWKHLQIOXHQFHRILQIHULRUPHQPXWXDOPLVWUXVWSUHYDLOVLQ

SXEOLFOLIHIUXLWIXODFWLYLW\LVUHQGHUHGLPSRVVLEOHEHFDXVHWKHIXQGDPHQWV

DUHZURQJ7KHUHIRUHWKHVXSHULRUPDQNQRZVZKDWKHPXVWGRXQGHUVXFK

FLUFXPVWDQFHVKHGRHVQRWDOORZKLPVHOIWREHWHPSWHGE\GD]]OLQJRIIHUVWR

WDNHSDUWLQSXEOLFDFWLYLWLHV7KLVZRXOGRQO\H[SRVHKLPWRGDQJHUVLQFHKH

FDQQRWDVVHQWWRWKHPHDQQHVVRIWKHRWKHUV+HWKHUHIRUHKLGHVKLVZRUWK

DQGZLWKGUDZVLQWRVHFOXVLRQ

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

:KHQULEERQJUDVVLVSXOOHGXSWKHVRGFRPHVZLWKLW

(DFKDFFRUGLQJWRKLVNLQG

3HUVHYHUDQFHEULQJVJRRGIRUWXQHDQGVXFFHVV

7KHWH[WLVDOPRVWWKHVDPHDVWKDWRIWKHILUVWOLQHRIWKHSUHFHGLQJKH[DJUDP

background image

EXWZLWKDFRQWUDU\PHDQLQJ,QWKHODWWHUDPDQLVGUDZLQJDQRWKHUDORQJ

ZLWKKLPRQWKHURDGWRDQRIILFLDOFDUHHUKHUHDPDQLVGUDZLQJDQRWKHU

ZLWKKLPLQWRUHWLUHPHQWIRUPSXEOLFOLIH7KLVLVZK\WKHWH[WVD\VKHUH

3HUVHYHUDQFHEULQJVJRRGIRUWXQHDQGVXFFHVVDQGQRW8QGHUWDNLQJVEULQJ

JRRGIRUWXQH,ILWEHFRPHVLPSRVVLEOHWRPDNHRXULQIOXHQFHFRXQWLWLV

RQO\E\UHWLUHPHQWWKDWZHVSDUHRXUVHOYHVKXPLOLDWLRQ6XFFHVVLQDKLJKHU

VHQVHFDQEHRXUVEHFDXVHZHNQRZKRZWRVDIHJXDUGWKHYDOXHRIRXU

SHUVRQDOLWLHV

ƒ6L[LQWKHVHFRQGSODFHPHDQV

7KH\EHDUDQGHQGXUH

7KLVPHDQVJRRGIRUWXQHIRULQIHULRUSHRSOH

7KHVWDQGVWLOOVHUYHVWRKHOSWKHJUHDWPDQWRDWWDLQVXFFHVV

,QIHULRUSHRSOHDUHUHDG\WRIODWWHUWKHLUVXSHULRUVLQDVHUYLOHZD\7KH\

ZRXOGDOVRHQGXUHWKHVXSHULRUPDQLIKHZRXOGSXWDQHQGWRWKHLU

FRQIXVLRQ7KLVLVIRUWXQDWHIRUWKHP%XWWKHJUHDWPDQFDOPO\EHDUVWKH

FRQVHTXHQFHVRIWKHVWDQGVWLOO+HGRHVQRWPLQJOHZLWKWKHFURZGRIWKH

LQIHULRUWKDWLVQRWKLVSODFH%\KLVZLOOLQJQHVVWRVXIIHUSHUVRQDOO\KH

LQVXUHVWKHVXFFHVVRIKLVIXQGDPHQWDOSULQFLSOHV

6L[LQWKHWKLUGSODFHPHDQV

7KH\EHDUVKDPH

,QIHULRUSHRSOHZKRKDYHULVHQWRSRZHULOOHJLWLPDWHO\GRQRWIHHOHTXDOWRWKH

UHVSRQVLELOLW\WKH\KDYHWDNHQXSRQWKHPVHOYHV,QWKHLUKHDUWVWKH\EHJLQWR

EHDVKDPHGDOWKRXJKDWILUVWWKH\GRQRWVKRZLWRXWZDUGO\7KLVPDUNVD

WXUQIRUWKHEHWWHU

1LQHLQWKHIRXUWKSODFHPHDQV

+HZKRDFWVDWWKHFRPPDQGRIWKHKLJKHVW

5HPDLQVZLWKRXWEODPH

7KRVHRIOLNHPLQGSDUWDNHRIWKHEOHVVLQJ

7KHWLPHRIVWDQGVWLOOLVQHDULQJWKHSRLQWRIFKDQJHLQWRLWVRSSRVLWH

:KRHYHUZLVKHVWRUHVWRUHRUGHUPXVWIHHOKLPVHOIFDOOHGWRWKHWDVNDQG

KDYHWKHQHFHVVDU\DXWKRULW\$PDQZKRVHWVKLPVHOIXSDFDSDEOHRI

FUHDWLQJRUGHUDFFRUGLQJWRKLVRZQMXGJPHQWFRXOGPDNHPLVWDNHVDQGHQG

LQIDLOXUH%XWWKHPDQZKRLVWUXO\FDOOHGWRWKHWDVNLVIDYRUHGE\WKH

FRQGLWLRQVRIWKHWLPHDQGDOOWKRVHRIOLNHPLQGZLOOVKDUHLQKLVEOHVVLQJ

ƒ1LQHLQWKHILIWKSODFHPHDQV

6WDQGVWLOOLVJLYLQJZD\

*RRGIRUWXQHIRUWKHJUHDWPDQ

:KDWLILWVKRXOGIDLOZKDWLILWVKRXOGIDLO"

,QWKLVZD\KHWLHVLWWRDFOXVWHURIPXOEHUU\VKRRWV

background image

7KHWLPHXQGHUJRHVDFKDQJH7KHULJKWPDQDEOHWRUHVWRUHRUGHUKDV

DUULYHG+HQFHJRRGIRUWXQH%XWVXFKSHULRGVRIWUDQVLWLRQDUHWKHYHU\

WLPHVLQZKLFKZHPXVWIHDUDQGWUHPEOH6XFFHVVLVDVVXUHGRQO\WKURXJK

JUHDWHVWFDXWLRQZKLFKDVNVDOZD\V:KDWLILWVKRXOGIDLO":KHQD

PXOEHUU\EXVKLVFXWGRZQDQXPEHURIXQXVXDOO\VWURQJVKRRWVVSURXWIURP

WKHURRWV+HQFHWKHLPDJHRIW\LQJVRPHWKLQJWRDFOXVWHURIPXOEHUU\VKRRWV

LVXVHGWRV\PEROL]HWKHZD\RIPDNLQJVXFFHVVFHUWDLQ&RQIXFLXVVD\VDERXW

WKLVOLQH

'DQJHUDULVHVZKHQDPDQIHHOVVHFXUHLQKLVSRVLWLRQ'HVWUXFWLRQWKUHDWHQV

ZKHQDPDQVHHNVWRSUHVHUYHKLVZRUOGO\HVWDWH&RQIXVLRQGHYHORSVZKHQD

PDQKDVSXWHYHU\WKLQJLQRUGHU7KHUHIRUHWKHVXSHULRUPDQGRHVQRWIRUJHW

GDQJHULQKLVVHFXULW\QRWUXLQZKHQKHLVZHOOHVWDEOLVKHGQRUFRQIXVLRQ

ZKHQKLVDIIDLUVDUHLQRUGHU,QWKLVZD\KHJDLQVSHUVRQDOVDIHW\DQGLVDEOH

WRSURWHFWWKHHPSLUH

1LQHDWWKHWRSPHDQV

7KHVWDQGVWLOOFRPHVWRDQHQG

)LUVWVWDQGVWLOOWKHQJRRGIRUWXQH

7KHVWDQGVWLOOGRHVQRWODVWIRUHYHU+RZHYHULWGRHVQRWFHDVHRILWVRZQ

DFFRUGWKHULJKWPDQLVQHHGHGWRHQGLW7KLVLVWKHGLIIHUHQFHEHWZHHQD

VWDWHRISHDFHDQGDVWDWHRIVWDJQDWLRQ&RQWLQXRXVHIIRUWLVQHFHVVDU\WR

PDLQWDLQSHDFHOHIWWRLWVHOILWZRXOGFKDQJHLQWRVWDJQDWLRQDQG

GLVLQWHJUDWLRQ7KHWLPHRIGLVLQWHJUDWLRQKRZHYHUGRHVQRWFKDQJHEDFN

DXWRPDWLFDOO\WRDFRQGLWLRQRISHDFHDQGSURVSHULW\HIIRUWPXVWEHSXWIRUWK

LQRUGHUWRHQGLW7KLVVKRZVWKHFUHDWLYHDWWLWXGHWKDWPDQPXVWWDNHLIWKH

ZRUOGLVWREHSXWLQRUGHU

LQGH[

7XQJ-rQ)HOORZVKLSZLWK0HQ

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ/,7+(&/,1*,1*)/$0(

7KHLPDJHRIWKHXSSHUWULJUDP&KLHQLVKHDYHQDQGWKDWRIWKHORZHU/LLV

IODPH,WLVWKHQDWXUHRIILUHWRIODPHXSWRWKHKHDYHQ7KLVJLYHVWKHLGHDRI

IHOORZVKLS,7LVWKHVHFRQGOLQHWKDWE\YLUWXHRILWVFHQWUDOFKDUDFWHUXQLWHV

WKHILYHVWURQJOLQHVDURXQGLW7KLVKH[DJUDPIRUPVDFRPSOHPHQWWR6KLK

7+($50<,QWKHODWWHUGDQJHULVZLWKLQDQGREHGLHQFHZLWKRXWWKH

FKDUDFWHURIDZDUOLNHDUP\ZKLFKLQRUGHUWRKROGWRJHWKHUQHHGVRQH

VWURQJPDQDPRQJWKHPDQ\ZKRDUHZHDN+HUHFODULW\LVZLWKLQDQG

VWUHQJWKZLWKRXWWKHFKDUDFWHURIDSHDFHIXOXQLRQRIPHQZKLFKLQRUGHUWR

KROGWRJHWKHUQHHGVRQH\LHOGLQJQDWXUHDPRQJPDQ\ILUPSHUVRQV

background image

7+(-8'*0(17

)(//2:6+,3:,7+0(1LQWKHRSHQ

6XFFHVV

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

7KHSHUVHYHUDQFHRIWKHVXSHULRUPDQIXUWKHUV

7UXHIHOORZVKLSDPRQJPHQPXVWEHEDVHGXSRQDFRQFHUQWKDWLVXQLYHUVDO

,WLVQRWWKHSULYDWHLQWHUHVWVRIWKHLQGLYLGXDOWKDWFUHDWHODVWLQJIHOORZVKLS

DPRQJPHQEXWUDWKHUWKHJRDOVRIKXPDQLW\7KDWLVZK\LWLVVDLGWKDW

IHOORZVKLSZLWKPHQLQWKHRSHQVXFFHHGV,IXQLW\RIWKLVNLQGSUHYDLOV

HYHQGLIILFXOWDQGGDQJHURXVWDVNVVXFKDVFURVVLQJWKHJUHDWZDWHUFDQEH

DFFRPSOLVKHG%XWLQRUGHUWREULQJDERXWWKLVVRUWRIIHOORZVKLSD

SHUVHYHULQJDQGHQOLJKWHQHGOHDGHULVQHHGHGDPDQZLWKFOHDUFRQYLQFLQJ

DQGLQVSLULQJDLPVDQGWKHVWUHQJWKWRFDUU\WKHPRXW7KHLQQHUWULJUDP

PHDQVFODULW\WKHRXWHUVWUHQJWK

7+(,0$*(

+HDYHQWRJHWKHUZLWKILUH

7KHLPDJHRI)(//2:6+,3:,7+0(1

7KXVWKHVXSHULRUPDQRUJDQL]HVWKHFODQV

$QGPDNHVGLVWLQFWLRQVEHWZHHQWKLQJV

+HDYHQKDVWKHVDPHGLUHFWLRQRIPRYHPHQWDVILUH\HWLWLVGLIIHUHQWIURP

ILUH-XVWDVWKHOXPLQDULHVLQWKHVN\VHUYHIRUWKHV\VWHPDWLFGLYLVLRQDQG

DUUDQJHPHQWRIWLPHVRKXPDQVRFLHW\DQGDOOWKLQJVWKDWUHDOO\EHORQJ

WRJHWKHUPXVWEHRUJDQLFDOO\DUUDQJHG)HOORZVKLSVKRXOGQRWEHDPHUH

PLQJOLQJRILQGLYLGXDOVRURIWKLQJVWKDWZRXOGEHFKDRVQRWIHOORZVKLS,I

IHOORZVKLSLVWROHDGWRRUGHUWKHUHPXVWEHRUJDQL]DWLRQZLWKLQGLYHUVLW\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

)HOORZVKLSZLWKPHQDWWKHJDWH

1REODPH

7KHEHJLQQLQJRIXQLRQDPRQJSHRSOHVKRXOGWDNHSODFHEHIRUHWKHGRRU$OO

DUHHTXDOO\FORVHWRRQHDQRWKHU1RGLYHUJHQWDLPVKDYH\HWDULVHQDQGRQH

PDNHVQRWPLVWDNHV7KHEDVLFSULQFLSOHVRIDQ\NLQGRIXQLRQPXVWEH

HTXDOO\DFFHVVLEOHWRDOOFRQFHUQHG6HFUHWDJUHHPHQWVEULQJPLVIRUWXQH

ƒ6L[LQWKHVHFRQGSODFHPHDQV

)HOORZVKLSZLWKPHQLQWKHFODQ

+XPLOLDWLRQ

7KHUHLVGDQJHUKHUHRIIRUPDWLRQRIDVHSDUDWHIDFWLRQRQWKHEDVLVRI

SHUVRQDODQGHJRWLVWLFLQWHUHVWV6XFKIDFWLRQVZKLFKDUHH[FOXVLYHDQG

background image

LQVWHDGRIZHOFRPLQJDOOPHQPXVWFRQGHPQRQHJURXSLQRUGHUWRXQLWHWKH

RWKHUVRULJLQDWHIURPORZPRWLYHVDQGWKHUHIRUHOHDGLQWKHFRXUVHRIWLPHWR

KXPLOLDWLRQ

1LQHLQWKHWKLUGSODFHPHDQV

+HKLGHVZHDSRQVLQWKHWKLFNHW

+HFOLPEVWKHKLJKKLOOLQIURQWRILW

)RUWKUHH\HDUVKHGRHVQRWULVHXS

+HUHIHOORZVKLSKDVFKDQJHGDERXWWRPLVWUXVW(DFKPDQGLVWUXVWVWKHRWKHU

SODQVDVHFUHWDPEXVKDQGVHHNVWRVS\RQKLVIHOORZIRUPDIDU:HDUH

GHDOLQJZLWKDQREVWLQDWHRSSRQHQWZKRPZHFDQQRWFRPHDWE\WKLVPHWKRG

2EVWDFOHVVWDQGLQJLQWKHZD\RIIHOORZVKLSZLWKRWKHUVDUHVKRZQKHUH2QH

KDVPHQWDOUHVHUYDWLRQVIRURQHVRZQSDUWDQGVHHNVWRWDNHKLVRSSRQHQWE\

VXUSULVH7KLVYHU\IDFWPDNHVRQHPLVWUXVWIXOVXVSHFWLQJWKHVDPHZLOHVLQ

KLVRSSRQHQWDQGWU\LQJWRIHUUHWWKHPRXW7KHUHVXOWLVWKDWRQHGHSDUWV

IXUWKHUDQGIXUWKHUIURPWUXHIHOORZVKLS7KHORQJHUWKLVJRHVRQWKHPRUH

DOLHQDWHGRQHEHFRPHV

1LQHLQWKHIRXUWKSODFHPHDQV

+HFOLPEVXSRQKLVZDOOKHFDQQRWDWWDFN

*RRGIRUWXQH

+HUHWKHUHFRQFLOLDWLRQWKDWIROORZVTXDUUHOPRYHUQHDUHU,WLVWUXHWKDWWKHUH

DUHVWLOOGLYLGLQJZDOOVRQZKLFKZHVWDQGFRQIURQWLQJRQHDQRWKHU%XWWKH

GLIILFXOWLHVDUHWRRJUHDW:HJHWLQWRVWUDLWVDQGWKLVEULQJVXVWRRXUVHQVHV

:HFDQQRWILJKWDQGWKHUHLQOLHVRXUJRRGIRUWXQH

ƒ1LQHLQWKHILIWKSODFHPHDQV

0HQERXQGLQIHOORZVKLSILUVWZHHSDQGODPHQW

%XWDIWHUZDUGWKH\ODXJK

$IWHUJUHDWVWUXJJOHVWKH\VXFFHHGLQPHHWLQJ

7ZRSHRSOHDUHRXWZDUGO\VHSDUDWHGEXWLQWKHLUKHDUWVWKH\DUHXQLWHG7KH\

DUHNHSWDSDUWE\WKHLUSRVLWLRQVLQOLIH0DQ\GLIILFXOWLHVDQGREVWUXFWLRQV

DULVHEHWZHHQWKHPDQGFDXVHWKHPJULHI%XWUHPDLQLQJWUXHWRHDFKRWKHU

WKHDOORZQRWKLQJWRVHSDUDWHWKHPDQGDOWKRXJKLWFRVWVWKHPDVHYHUH

VWUXJJOHWRRYHUFRPHWKHREVWDFOHVWKH\ZLOOVXFFHHG:KHQWKH\FRPH

WRJHWKHUWKHLUVDGQHVVZLOOFKDQJHWRMR\&RQIXFLXVVD\RIWKLV

/LIHOHDGVWKHWKRXJKWIXOPDQRQDSDWKRIPDQ\ZLQGLQJV

1RZWKHFRXUVHLVFKHFNHGQRZLWUXQVVWUDLJKWDJDLQ

+HUHZLQJHGWKRXJKWVPD\SRXUIUHHO\IRUWKLQZRUGV

7KHUHWKHKHDY\EXUGHQRINQRZOHGJHPXVWEHVKXWDZD\LQVLOHQFH

%XWZKHQWZRSHRSOHDUHDWRQHLQWKHLQPRVWKHDUWV

7KH\VKDWWHUHYHQWKHVWUHQJWKRILURQRURIEURQ]H

$QGZKHQWZRSHRSOHXQGHUVWDQGHDFKRWKHULQWKHLULQPRVWKHDUWV

background image

7KHLUZRUGVDUHVZHHWDQGVWURQJOLNHWKHIUDJUDQFHRIRUFKLGV

1LQHDWWKHWRSPHDQV

)HOORZVKLSZLWKPHQLQWKHPHDGRZ

1RUHPRUVH

7KHZDUPDWWDFKPHQWWKDWVSULQJVIURPWKHKHDUWLVODFNLQJKHUH:HDUHE\

WKLVWLPHDFWXDOO\RXWVLGHRIIHOORZVKLSZLWKRWKHUV+RZHYHUZHDOO\

RXUVHOYHVZLWKWKHP7KHIHOORZVKLSGRHVQRWLQFOXGHDOOEXWRQO\WKRVH

ZKRKDSSHQWRGZHOOQHDURQHDQRWKHU7KHPHDGRZLVWKHSDVWXUHDWWKH

HQWUDQFHWRWKHWRZQ$WWKLVVWDJHWKHXOWLPDWHJRDORIWKHXQLRQRI

PDQNLQGKDVQRW\HWEHHQDWWDLQHGEXWZHQHHGQRWUHSURDFKRXUVHOYHV:H

MRLQWKHFRPPXQLW\ZLWKRXWVHSDUDWHDLPVRIRXURZQ

LQGH[

7D<X3RVVHVVLRQLQ*UHDW0HDVXUH

DERYH/,7+(&/,1*,1*)/$0(

EHORZ&+,(17+(&5($7,9(+($9(1

7KHILUHLQKHDYHQDERYHVKLQHVIDUDQGDOOWKLQJVVWDQGRXWLQWKHOLJKWDQG

EHFRPHPDQLIHVW7KHZHDNILIWKOLQHRFFXSLHVWKHSODFHRIKRQRUDQGDOOWKH

VWURQJOLQHVDUHLQDFFRUGZLWKLW

$OOWKLQJVFRPHWRWKHPDQZKRLVPRGHVWDQGNLQGLQDKLJKSRVLWLRQ

7+(-8'*0(17

3266(66,21,1*5($70($685(

6XSUHPHVXFFHVV

7KHWZRWULJUDPVLQGLFDWHWKDWVWUHQJWKDQGFODULW\XQLWH3RVVHVVLRQVJUHDW

PHDVXUHLVGHWHUPLQHGE\IDWHDQGDFFRUGVZLWKWKHWLPH+RZLVLWSRVVLEOH

WKDWWKHZHDNOLQHKDVSRZHUWRKROGWKHVWURQJOLQHVIDVWDQGWRSRVVHVV

WKHP",WLVGRQHE\YLUWXHRIXQVHOILVKPRGHVW\7KHWLPHLVIDYRUDEOHD

WLPHRIVWUHQJWKZLWKLQFODULW\DQGFXOWXUHZLWKRXW3RZHULVH[SUHVVLQJLWVHOI

LQJUDFHIXODQGFRQWUROOHGZD\7KLVEULQJVVXSUHPHVXFFHVVDQGZHDOWK

7+(,0$*(

)LUHLQKHDYHQDERYH

WKHLPDJHRI3266(66,21,1*5($70($685(

7KXVWKHVXSHULRUPDQFXUEVHYLODQGIXUWKHUVJRRG

$QGWKHUHE\REH\VWKHEHQHYROHQWZLOORIKHDYHQ

7KHVXQLQKHDYHQDERYHVKHGGLQJOLJKWRYHUHYHU\WKLQJRQHHDUWKLVWKH

background image

LPDJHRISRVVHVVLRQRQDJUDQGVFDOH%XWDSRVVHVVLRQRIWKLVVRUWPXVWEH

DGPLQLVWHUHGSURSHUO\7KHVXQEULQJVERWKHYLODQGJRRGLQWRWKHOLJKWRI

GD\0DQPXVWFRPEDWDQGFXUEWKHHYLODQGPXVWIDYRUDQGSURPRWHWKH

JRRG2QO\LQWKLVZD\GRHVKHIXOILOOWKHEHQHYROHQWZLOORI*RGZKRGHVLUHV

RQO\JRRGDQGQRWHYLO

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

1RUHODWLRQVKLSZLWKZKDWLVKDUPIXO

7KHUHLVQREODPHLQWKLV

,IRQHUHPDLQVFRQVFLRXVRIGLIILFXOW\

2QHUHPDLQVZLWKRXWEODPH

*UHDWSRVVHVVLRQWKDWLVVWLOOLQLWVEHJLQQLQJVDQGWKDWKDVQRW\HWEHHQ

FKDOOHQJHGEULQJVQREODPHVLQFHWKHUHKDVEHHQQRRSSRUWXQLW\WRPDNH

PLVWDNHV<HWWKHUHDUHPDQ\GLIILFXOWLHVWREHRYHUFRPH,WLVRQO\E\

UHPDLQLQJFRQVFLRXVRIWKHVHVGLIILFXOWLHVWKDWRQHFDQNHHSLQZDUGO\IUHHRI

SRVVLEOHDUURJDQFHDQGZDVWHIXOQHVVDQGWKXVLQSULQFLSOHRYHUFRPHDOOFDXVH

IRUEODPH

1LQHLQWKHVHFRQGSODFHPHDQV

$ELJZDJRQIRUORDGLQJ

2QHPD\XQGHUWDNHVRPHWKLQJ

1REODPH

*UHDWSRVVHVVLRQFRQVLVWVQRWRQO\LQWKHTXDQWLW\RIJRRGVDWRQHVGLVSRVDO

EXWILUVWDQGIRUHPRVWLQWKHLUPRELOLW\DQGXWLOLW\IRUWKHQWKH\FDQEHXVHG

LQXQGHUWDNLQJVDQGZHUHPDLQIUHHRIHPEDUUDVVPHQWDQGPLVWDNHV7KHELJ

ZDJRQZKLFKZLOOFDUU\DKHDY\ORDGDQGLQZKLFKRQHFDQMRXUQH\IDUP

PHDQVWKDWWKHUHDUHDWKDQGDEOHKHOSHUVZKRJLYHWKHLUVXSSRUWWDQGDUH

HTXDOWRWKHLUWDVN2QHFDQORDGJUHDWUHVSRQVLELOLW\XSRQVXFKSHUVRQVDQG

WKLVLVQHFHVVDU\LQLPSRUWDQWXQGHUWDNLQJV

1LQHLQWKHWKLUGSODFHPHDQV

$SULQFHRIIHUVLWWRWKH6RQRI+HDYHQ

$SHWW\PDQFDQQRWGRWKLV

$PDJQDQLPRXVOLEHUDOPLQGHGPDQVKRXOGQRWUHJDUGZKDWKHSRVVHVVHVDV

KLVH[FOXVLYHSHUVRQDOSURSHUW\EXWVKRXOGSODFHLWDWWKHGLVSRVDORIWKHUXOHU

RURIWKHSHRSOHDWODUJH,QVRGRLQJKHWDNHVWKHULJKWDWWLWXGHWRZDUGKLV

SRVVHVVLRQZKLFKDVSULYDWHSURSHUW\FDQQHYHUHQGXUH$SHWW\PDQLV

LQFDSDEOHRIWKLV+HLVKDUPHGE\JUHDWSRVVHVVLRQVEHFDXVHLQVWHDGRI

VDFULILFLQJWKHPKHZRXOGNHHSWKHPIRUKLPVHOI

1LQHLQWKHIRXUWKSODFHPHDQV

+HPDNHVDGLIIHUHQFH

%HWZHHQKLPVHOIDQGKLVQHLJKERU

background image

1REODPH

7KLVFKDUDFWHUL]HVWKHSRVLWLRQRIDPDQSODFHGDPRQJULFKDQGSRZHUIXO

QHLJKERUV,WLVDGDQJHURXVSRVLWLRQ+HPXVWORRNQHLWKHUWRWKHULJKWQRU

WRWKHOHIWDQGPXVWVKXQHQY\DQGWKHWHPSWDWLRQWRYLHZLWKRWKHUV,QWKLV

ZD\KHUHPDLQVIUHHRIPLVWDNHV

ƒ6L[LQWKHILIWKSODFHPHDQV

+HZKRVHWUXWKLVDFFHVVLEOH\HWGLJQLILHG

+DVJRRGIRUWXQH

7KHVLWXDWLRQLVYHU\IDYRUDEOH3HRSOHDUHEHLQJZRQQRWE\FRHUFLRQEXWE\

XQDIIHFWHGVLQFHULW\VRWKDWWKH\DUHDWWDFKHGWRXVLQVLQFHULW\DQGWUXWK

+RZHYHUEHQHYROHQFHDORQHLVQRWVXIILFLHQWDWWKHWLPHRI3266(66,21,1

*5($70($685()RULQVROHQFHPLJKWEHJLQWRVSUHDG,QVROHQFHPXVWEH

NHSWLQERXQGVE\GLJQLW\WKHQJRRGIRUWXQHLVDVVXUHG

1LQHDWWKHWRSPHDQV

+HLVEOHVVHGE\KHDYHQ

*RRGIRUWXQH

1RWKLQJWKDWGRHVQRWIXUWKHU

,QWKHIXOOQHVVRISRVVHVVLRQDQGDWWKHKHLJKWRISRZHURQHUHPDLQVPRGHVW

DQGJLYHVKRQRUWRWKHVDJHZKRVWDQGVRXWVLGHWKHDIIDLUVRIWKHZRUOG%\

WKLVPHDQVRQHSXWVRQHVHOIXQGHUWKHEHQHILFHQWLQIOXHQFHGHVFHQGLQJIRUP

KHDYHQDQGDOOJRHVZHOO&RQIXFLXVVD\VRIWKLVOLQH

7REOHVVPHDQVWRKHOS+HDYHQKHOSVWKHPDQZKRLVGHYRWHGPHQKHOSWKH

PDQZKRLVWUXH+HZKRZDONVLQWUXWKDQGLVGHYRWHGLQKLVWKLQNLQJDQG

IXUWKHUPRUHUHYHUHVWKHZRUWK\LVEOHVVHGE\KHDYHQ+HKDVJRRGIRUWXQH

DQGWKHUHLVQRWKLQJWKDWZRXOGQRWIXUWKHU

LQGH[

&KLHQ0RGHVW\

DERYH.817+(5(&(37,9(($57+

EHORZ.(1.((3,1*67,//02817$,1

7KLVKH[DJUDPLVPDGHXSRIWKHWULJUDPV.rQ.HHSLQJ6WLOOPRXQWDLQDQG

.XQ7KHPRXQWDLQLVWKH\RXQJHVWVRQRIWKH&UHDWLYHWKHUHSUHVHQWDWLYH

RIKHDYHQDQGHDUWK,WGLVSHQVHVWKHEOHVVLQJVRIKHDYHQWKHFORXGVDQGUDLQ

WKDWJDWKHUURXQGLWVVXPPLWDQGWKHUHDIWHUVKLQHVIRUWKUDGLDQWZLWK

KHDYHQO\OLJKW7KLVVKRZVZKDWPRGHVW\LVDQGKRZLWIXQFWLRQVLQJUHDW

DQGVWURQJPHQ.XQWKHHDUWKVWDQGVDERYH/RZOLQHVVLVDTXDOLW\RIWKH

HDUWKWKLVLVWKHYHU\UHDVRQZK\LWDSSHDUVLQWKLVKH[DJUDPDVH[DOWHGE\

background image

EHLQJSODFHGDERYHWKHPRXQWDLQ7KLVVKRZVKRZPRGHVW\IXQFWLRQVLQ

ORZO\VLPSOHSHRSOHWKH\DUHOLIWHGXSE\LW

7+(-8'*0(17

02'(67<FUHDWHVVXFFHVV

7KHVXSHULRUPDQFDUULHVWKLQJVWKURXJK

,WLVWKHODZRIKHDYHQWRPDNHIXOOQHVVHPSW\DQGWRPDNHIXOOZKDWLV

PRGHVWZKHQWKHVXQLVDWLWV]HQLWKLWPXVWDFFRUGLQJWRWKHODZRIKHDYHQ

WXUQWRZDUGLWVVHWWLQJDQGDWLWVQDGLULWULVHVWRZDUGDQHZGDZQ,Q

REHGLHQFHWRWKHVDPHODZWKHPRRQZKHQLWLVIXOOEHJLQVWRZDQHDQG

ZKHQHPSW\RIOLJKWLWZD[HVDJDLQ7KLVKHDYHQO\ODZZRUNVLWVHOIRXWLQWKH

IDWHVRIPHQDOVR,WLVWKHODZRIHDUWKWRDOWHUWKHIXOODQGWRFRQWULEXWHWR

WKH

PRGHVW+LJKPRXQWDLQVDUHZRUQGRZQE\WKHZDWHUVDQGWKHYDOOH\VDUH

ILOOHGXS,WLVWKHODZRIIDWHWRXQGHUPLQHZKDWLVIXOODQGWRSURVSHUWKH

PRGHVW$QGPHQDOVRKDWHIXOOQHVVDQGORYHWKHPRGHVW

7KHGHVWLQLHVRIPHQDUHVXEMHFWWRLPPXWDEOHODZVWKDWPXVWIXOILOO

WKHPVHOYHV%XWPDQKDVLWLQKLVSRZHUWRVKDSHKLVIDWHDFFRUGLQJDVKLV

EHKDYLRUH[SRVHVKLPWRWKHLQIOXHQFHRIEHQHYROHQWRURIGHVWUXFWLYHIRUFHV

:KHQDPDQKROGVDKLJKSRVLWLRQDQGLVQHYHUWKHOHVVPRGHVWKHVKLQHV

ZLWKWKHOLJKWRIZLVGRPLIKHLVLQDORZO\SRVLWLRQDQGLVPRGHVWKHFDQQRW

EHSDVVHGE\7KXVWKHVXSHULRUPDQFDQFDUU\RXWKLVZRUNWRWKHHQG

ZLWKRXWERDVWLQJRIZKDWKHKDVDFKLHYHG

7+(,0$*(

:LWKLQWKHHDUWKDPRXQWDLQ

7KHLPDJHRI02'(67<

7KXVWKHVXSHULRUPDQUHGXFHVWKDWZKLFKLVWRRPXFK

$QGDXJPHQWVWKDWZKLFKLVWRROLWWOH

+HZHLJKVWKLQJVDQGPDNHVWKHPHTXDO

7KHZHDOWKRIWKHHDUWKLQZKLFKDPRXQWDLQLVKLGGHQLVQRWYLVLEOHWRWKH

H\HEHFDXVHWKHGHSWKVDUHRIIVHWE\WKHKHLJKWRIWKHPRXQWDLQ7KXVKLJK

DQGORZFRPSHWHQWHDFKRWKHUDQGWKHUHVXOWLVWKHSODLQ+HUHDQHIIHFWWKDW

LWWRRNDORQJWLPHWRDFKLHYHEXWWKDWLQWKHHQGVHHPVHDV\RI

DFFRPSOLVKPHQWDQGVHOIHYLGHQWLVXVHGDVWKHLPDJHRIPRGHVW\7KH

VXSHULRUPDQGRHVWKHVDPHWKLQJZKHQKHHVWDEOLVKHVRUGHULQWKHZRUOGKH

HTXDOL]HVWKHH[WUHPHVWKDWDUHWKHVRXUFHRIVRFLDOGLVFRQWHQWDQGWKHUHE\

FUHDWHVMXVWDQGHTXDEOHFRQGLWLRQV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

$VXSHULRUPDQPRGHVWDERXWKLVPRGHVW\

background image

0D\FURVVWKHJUHDWZDWHU

*RRGIRUWXQH

$GDQJHURXVHQWHUSULVHVXFKDVWKHFURVVLQJRIDJUHDWVWUHDPLVPDGHPXFK

PRUHGLIILFXOWLIPDQ\FODLPVDQGFRQVLGHUDWLRQVKDYHWREHWDNHQLQWR

DFFRXQW2QWKHRWKHUKDQGWKHWDVNLVHDV\LILWLVDWWHQGHGWRTXLFNO\DQG

VLPSO\7KHUHIRUHWKHXQDVVXPLQJDWWLWXGHRIPLQGWKDWJRHVZLWKPRGHVW\

ILWVDPDQWRDFFRPSOLVKHYHQGLIILFXOWXQGHUWDNLQJVKHLPSRVHVQR

GHPDQGVRUVWLSXODWLRQVEXWVHWWOHVPDWWHUVHDVLO\DQGTXLFNO\:KHUHQR

FODLPVDUHSXWIRUZDUGQRUHVLVWDQFHVDULVH

6L[LQWKHVHFRQGSODFHPHDQV

0RGHVW\WKDWFRPHVWRH[SUHVVLRQ3HUVHYHUDQFHEULQJVJRRGIRUWXQH

2XWRIWKHIXOOQHVVRIWKHKHDUWWKHPRXWKVSHDNHWK:KHQDPDQV

DWWLWXGHRIPLQGLVVRPRGHVWWKDWWKLVH[SUHVVHVLWVHOILQKLVRXWZDUG

EHKDYLRULWLVDVRXUFHRIJRRGIRUWXQHWRKLP)RUWKHSRVVLELOLW\RIH[HUWLQJ

DODVWLQJLQIOXHQFHDULVHVRILWVHOIDQGQRRQHFDQLQWHUIHUH

ƒ1LQHLQWKHWKLUGSODFHPHDQV

$VXSHULRUPDQRIPRGHVW\DQGPHULW

&DUULHVWKLQJVWRFRQFOXVLRQ

*RRGIRUWXQH

7KLVLVWKHFHQWHURIWKHKH[DJUDPZKHUHLWVVHFUHWLVGLVFORVHG$

GLVWLQJXLVKHGQDPHLVUHDGLO\HDUQHGE\JUHDWDFKLHYHPHQWV,IDPDQDOORZV

KLPVHOIWREHGD]]OHGE\IDPHKHZLOOVRRQEHFULWLFL]HGDQGGLIILFXOWLHVZLOO

DULVH,IRQWKHFRQWUDU\KHUHPDLQVPRGHVWGHVSLWHKLVPHULWKHPDNHV

KLPVHOIEHORYHGDQGZLQVWKHVXSSRUWQHFHVVDU\IRUFDUU\LQJKLVZRUN

WKURXJKWRWKHHQG

6L[LQWKHIRXUWKSODFHPHDQV

1RWKLQJWKDWZRXOGQRWIXUWKHUPRGHVW\

,QPRYHPHQW

(YHU\WKLQJKDVLWVSURSHUPHDVXUH(YHQPRGHVW\LQEHKDYLRUFDQEHFDUULHG

WRRIDU+HUHKRZHYHULWLVDSSURSULDWHEHFDXVHWKHSODFHEHWZHHQDZRUWK\

KHOSHUEHORZDQGDNLQGO\UXOHUDERYHFDUULHVJUHDWUHVSRQVLELOLW\7KH

FRQILGHQFHRIWKHPDQLQVXSHULRUSODFHPXVWQRWEHDEXVHGQRUWKHPHULWVRI

WKHPDQLQLQIHULRUSODFHGFRQFHDOHG7KHUHDUHRIILFLDOVZKRLQGHHGGRQRW

VWULYHIRUSURPLQHQFHWKH\KLGHEHKLQGWKHOHWWHURIRUGLQDQFHVGHFOLQHDOO

UHVSRQVLELOLW\DFFHSWSD\ZLWKRXWJLYLQJLWVHTXLYDOHQWLQZRUNDQGEHDU

HPSW\WLWOHV7KLVLVWKHRSSRVLWHRIZKDWLVPHDQWKHUHE\PRGHVW\,QVXFKD

SRVLWLRQPRGHVW\LVVKRZQE\LQWHUHVWLQRQHVZRUN

6L[LQWKHILIWKSODFHPHDQV

1RERDVWLQJRIZHDOWKEHIRUHRQHVQHLJKERU

,WLVIDYRUDEOHWRDWWDFNZLWKIRUFH

background image

1RWKLQJWKDWZRXOGQRWIXUWKHU

0RGHVW\LVQRWWREHFRQIXVHGZLWKZHDNJRRGQDWXUHWKDWOHWVWKLQJVWDNH

WKHLURZQFRXUVH:KHQDPDQKROGVDUHVSRQVLEOHSRVLWLRQKHPXVWDWWLPHV

UHVRUWWRHQHUJHWLFPHDVXUHV,QGRLQJVRKHPXVWQRWWU\WRPDNHDQ

LPSUHVVLRQE\ERDVWLQJRIKLVVXSHULRULW\EXWPXVWPDNHFHUWDLQRIWKHSHRSOH

DURXQGKLP7KHPHDVXUHVWDNHQVKRXOGEHSXUHO\REMHFWLYHDQGLQQRZD\

SHUVRQDOO\RIIHQVLYH7KXVPRGHVW\PDQLIHVWVLWVHOIHYHQLQVHYHULW\

6L[DWWKHWRSPHDQV

0RGHVW\WKDWFRPHVWRH[SUHVVLRQ

,WLVIDYRUDEOHWRVHWDUPLHVPDUFKLQJ

7RFKDVWLVHRQHVRZQFLW\DQGRQHVFRXQWU\

$SHUVRQZKRLVUHDOO\VLQFHUHLQKLVPRGHVW\PXVWPDNHLWVKRZLQUHDOLW\

+HPXVWSURFHHGZLWKJUHDWHQHUJ\LQWKLV:KHQHQPLW\DULVHVQRWKLQJLV

HDVLHUWKDQWROD\WKHEODPHRQDQRWKHU$ZHDNPDQWDNHVRIIHQVHSHUKDSV

DQGGUDZVEDFNIHHOLQJVHOISLW\KHWKLQNVWKDWLWLVPRGHVW\WKDWNHHSVKLP

IURPGHIHQGLQJKLPVHOI*HQXLQHPRGHVW\VHWVRQHWRFUHDWLQJRUGHUDQG

LQVSLUHVRQHWREHJLQE\GLVFLSOLQLQJRQHVRZQHJRDQGRQHVLPPHGLDWH

FLUFOH2QO\WKURXJKKDYLQJWKHFRXUDJHWRPDUVKDORQHVDUPLHVDJDLQVW

RQHVHOIZLOOVRPHWKLQJIRUFHIXOUHDOO\EHDFKLHYHG

LQGH[

<(QWKXVLDVP

DERYH&+r17+($5286,1*7+81'(5

EHORZ.817+(5(&(37,9(($57+

7KHVWURQJOLQHLQWKHIRXUWKSODFHWKDWRIWKHOHDGLQJRIILFLDOPHHWVZLWK

UHVSRQVHDQGREHGLHQFHIURPDOOWKHRWKHUOLQHVZKLFKDUHDOOZHDN7KH

DWWULEXWHRIWKHXSSHUWULJUDP&KrQLVPRYHPHQWWKHDWWULEXWHVRI.XQWKH

ORZHUDUHREHGLHQFHDQGGHYRWLRQ7KLVEHJLQVDPRYHPHQWWKDWPHHWVZLWK

GHYRWLRQDQGWKHUHIRUHLQVSLUHVHQWKXVLDVPFDUU\LQJDOOZLWKLW2IJUHDW

LPSRUWDQFHIXUWKHUPRUHLVWKHODZRIPRYHPHQWDORQJWKHOLQHRIOHDVW

UHVLVWDQFHZKLFKLQWKLVKH[DJUDPLVHQXQFLDWHGDVWKHODZIRUQDWXUDOHYHQWV

DQGIRUKXPDQOLIH

7+(-8'*0(17

(17+86,$60,WIXUWKHUVRQHWRLQVWDOOKHOSHUV

$QGWRVHWDUPLHVPDUFKLQJ

7KHWLPHRI(17+86,$60GHULYHVIURPWKHIDFWWKDWWKHUHLVDWKDQGDQ

HPLQHQWPDQZKRLVLQV\PSDWK\ZLWKWKHVSLULWRIWKHSHRSOHDQGDFWVLQ

background image

DFFRUGZLWKLW+HQFHKHILQGVXQLYHUVDODQGZLOOLQJREHGLHQFH7RDURXVH

HQWKXVLDVPLWLVQHFHVVDU\IRUDPDQWRDGMXVWKLPVHOIDQGKLVRUGLQDQFHVWR

WKHFKDUDFWHURIWKRVHZKRPKHKDVWROHDG7KHLQYLRODELOLW\RIQDWXUDOODZV

UHVWVRQWKLVSULQFLSOHRIPRYHPHQWDORQJWKHOLQHRIOHDVWUHVLVWDQFH7KHVHV

ODZVDUHQRWIRUFHVH[WHUQDOWRWKLQJVEXWUHSUHVHQWWKHKDUPRQ\RI

PRYHPHQWLPPDQHQWLQWKHP7KDWLVZK\WKHFHOHVWLDOERGLHVGRQRW

GHYLDWHIURPWKHLURUELWVDQGZK\DOOHYHQWVLQQDWXUHRFFXUZLWKIL[HG

UHJXODULW\,WLVWKHVDPHZLWKKXPDQVRFLHW\RQO\VXFKODZVDUHURRWHGLQ

SRSXODUVHQWLPHQWFDQEHHQIRUFHGZKLOHODZVYLRODWLQJWKLVVHQWLPHQW

PHUHO\DURXVHUHVHQWPHQW

$JDLQLWLVHQWKXVLDVPWKDWHQDEOHVXVWRLQVWDOOKHOSHUVIRUWKHFRPSOHWLRQ

RIDQXQGHUWDNLQJZLWKRXWIHDURIVHFUHWRSSRVLWLRQ,WLVHQWKXVLDVPWRRWKDW

FDQXQLI\PDVVPRYHPHQWVDVLQZDUVRWKDWWKH\DFKLHYHYLFWRU\

7+(,0$*(

7KXQGHUFRPHVUHVRXQGLQJRXWRIWKHHDUWK

7KHLPDJHRI(17+86,$60

7KXVWKHDQFLHQWNLQJVPDGHPXVLF

,QRUGHUWRKRQRUPHULW

$QGRIIHUHGLWZLWKVSOHQGRU

7RWKH6XSUHPH'HLW\

,QYLWLQJWKHLUDQFHVWRUVWREHSUHVHQW

:KHQDWWKHEHJLQQLQJRIVXPPHUWKXQGHUHOHFWULFDOHQHUJ\FRPHV

UXVKLQJIRUWKIURPWKHHDUWKDJDLQDQGWKHILUVWWKXQGHUVWRUPUHIUHVKHV

QDWXUHDSURORQJHGVWDWHRIWHQVLRQLVUHVROYHG-R\DQGUHOLHIPDNH

WKHPVHOYHVIHOW6RWRRPXVLFKDVSRZHUWRHDVHWHQVLRQZLWKLQWKHKHDUWDQG

WRORRVHQWKHJULSRIREVFXUHHPRWLRQV7KHHQWKXVLDVPRIWKHKHDUW

H[SUHVVHVLWVHOILQYROXQWDULO\LQDEXUVWRIVRQJLQGDQFHDQGUK\WKPLF

PRYHPHQWRIWKHERG\)URPLPPHPRULDOWLPHVWKHLQVSLULQJHIIHFWRIWKH

LQYLVLEOHVRXQGWKDWPRYHVDOOKHDUWVDQGGUDZVWKHPWRJHWKHUKDVP\VWLILHG

PDQNLQG

5XOHUVKDYHPDGHXVHRIWKLVQDWXUDOWDVWHIRUPXVLFWKH\HOHYDWHGDQG

UHJXODWHGLW0XVLFZDVORRNHGXSRQDVVRPHWKLQJVHULRXVDQGKRO\GHVLJQHG

WRSXULI\WKHIHHOLQJVRIPHQ,WIHOOWRPXVLFWRJORULI\WKHYLUWXHVRIKHURHV

DQGWKXVWRFRQVWUXFWDEULGJHWRWKHZRUOGRIWKHXQVHHQ,QWKHWHPSOHPHQ

GUHZQHDUWR*RGZLWKPXVLFDQGSDQWRPLPHVRXWRIWKLVODWHUWKHWKHDWHU

GHYHORSHG5HOLJLRXVIHHOLQJIRUWKH&UHDWRURIWKHZRUOGZDVXQLWHGZLWK

WKHPRVWVDFUHGRIKXPDQIHHOLQJVWKDWRIUHYHUHQFHIRUWKHDQFHVWRUV7KH

DQFHVWRUVZHUHLQYLWHGWRWKHVHGLYLQHVHUYLFHVDVJXHVWVRIWKH5XOHURI

+HDYHQDQGDVUHSUHVHQWDWLYHVRIKXPDQLW\LQWKHKLJKHUUHJLRQV7KLV

XQLWLQJRIWKHKXPDQSDVWZLWKWKH'LYLQLW\LQVROHPQPRPHQWVRI

UHOLJLRXVLQVSLUDWLRQHVWDEOLVKHGWKHERQGEHWZHHQ*RGDQGPDQ7KHUXOHU

ZKRUHYHUHGWKH'LYLQLW\LQUHYHULQJKLVDQFHVWRUVEHFDPHWKHUHE\WKH6RQRI

+HDYHQLQZKRPWKHKHDYHQO\DQGWKHHDUWKO\ZRUOGPHWLQP\VWLFDO

FRQWDFW

7KHVHLGHDVDUHWKHILQDOVXPPDWLRQRI&KLQHVHFXOWXUH&RQIXFLXVKDVVDLG

background image

RIWKHJUHDWVDFULILFHDWZKLFKWKHVHULWHVZHUHSHUIRUPHG+HZKRFRXOG

ZKROO\FRPSUHKHQGWKLVVDFULILFHFRXOGUXOHWKHZRUOGDVWKRXJKLWZHUH

VSLQQLQJRQKLVKDQG

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

(QWKXVLDVPWKDWH[SUHVVHVLWVHOI

%ULQJVPLVIRUWXQH

$PDQLQDQLQIHULRUSRVLWLRQKDVDULVWRFUDWLFFRQQHFWLRQVDERXWZKLFKKH

ERDVWVHQWKXVLDVWLFDOO\7KLVDUURJDQFHLQHYLWDEO\LQYLWHVPLVIRUWXQH

(QWKXVLDVPVKRXOGQHYHUEHDQHJRWLVWLFHPRWLRQLWLVMXVWLILHGRQO\ZKHQLW

LVDJHQHUDOIHHOLQJWKDWXQLWHVRQHZLWKRWKHUV

6L[LQWKHVHFRQGSODFHPHDQV

)LUPDVDURFN1RWDZKROHGD\

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7KLVGHVFULEHVDSHUVRQZKRGRHVQRWDOORZKLPVHOIWREHPLVOHGE\DQ\

LOOXVLRQV:KLOHRWKHUVDUHOHWWLQJWKHPVHOYHVEHGD]]OHGE\HQWKXVLDVPKH

UHFRJQL]HVZLWKSHUIHFWFODULW\WKHILUVWVLJQVRIWKHWLPH7KXVKHQHLWKHU

IODWWHUVWKRVHDERYHQRUQHJOHFWVWKRVHEHQHDWKKLPKHLVDVILUPDVDURFN

:KHQWKHILUVWVLJQRIGLVFRUGDSSHDUVKHNQRZVWKHULJKWPRPHQWIRU

ZLWKGUDZLQJDQGGRHVQRWGHOD\HYHQIRUDGD\3HUVHYHUDQFHLQVXFKFRQGXFW

ZLOOEULQJJRRGIRUWXQH&RQIXFLXVVD\VDERXWWKLVOLQH

7RNQRZWKHVHHGVWKDWLVGLYLQHLQGHHG,QKLVDVVRFLDWLRQZLWKWKRVHDERYH

KLPWKHVXSHULRUPDQGRHVQRWIODWWHU,QKLVDVVRFLDWLRQZLWKWKRVHEHQHDWK

KLPKHLVQRWDUURJDQW)RUKHNQRZVWKHVHHGV7KHVHHGVDUHWKHILUVW

LPSHUFHSWLEOHEHJLQQLQJRIPRYHPHQWWKHILUVWWUDFHRIJRRGIRUWXQHRU

PLVIRUWXQHWKDWVKRZVLWVHOI7KHVXSHULRUPDQSHUFHLYHVWKHVHHGVDQG

LPPHGLDWHO\WDNHVDFWLQ+HGRHVQRWZDLWHYHQDZKROHGD\,QWKH%RRNRI

&KDQJHVLWLVVDLG)LUPDVDURFN1RWDZKROHGD\3HUVHYHUDQFHEULQJV

JRRGIRUWXQH

)LUPDVDURFNZKDWQHHGRIDZKROHGD\"

7KHMXGJPHQWFDQEHNQRZQ

7KHVXSHULRUPDQNQRZVZKDWLVKLGGHQDQGZKDWLVHYLGHQW

+HNQRZVZHDNQHVVKHNQRZVVWUHQJWKDVZHOO

+HQFHWKHP\ULDGVORRNXSWRKLP

6L[LQWKHWKLUGSODFHPHDQV

(QWKXVLDVPWKDWORRNVXSZDUGFUHDWHVUHPRUVH

+HVLWDWLRQEULQJVUHPRUVH

7KLVOLQHLVWKHRSSRVLWHRIWKHSUHFHGLQJRQHWKHODWWHUEHVSHDNVVHOI

UHOLDQFH

ZKLOHKHUHWKHUHLVHQWKXVLDVWLFORRNLQJXSWRDOHDGHU,IDPDQKHVLWDWHVWRR

background image

ORQJWKLVDOVRZLOOEULQJUHPRUVH7KHULJKWPRPHQWIRUDSSURDFKPXVWEH

VHL]HGRQO\WKHQZLOOKHGRWKHULJKWWKLQJ

ƒ1LQHLQWKHIRXUWKSODFHPHDQV

7KHVRXUFHRIHQWKXVLDVP

+HDFKLHYHVJUHDWWKLQJV

'RXEWQRW

<RXJDWKHUIULHQGVDURXQG\RX

$VDKDLUFODVSJDWKHUVWKHKDLU

7KLVGHVFULEHVDPDQZKRLVDEOHWRDZDNHQHQWKXVLDVPWKURXJKKLVRZQ

VXUHQHVVDQGIUHHGRPIURPKHVLWDWLRQ+HDWWUDFWVSHRSOHEHFDXVHKHKDVQR

GRXEWVDQGLVZKROO\VLQFHUH2ZLQJWRKLVFRQILGHQFHLQWKHPKHZLQVWKHLU

HQWKXVLDVWLFFRRSHUDWLRQDQGDWWDLQVVXFFHVV-XVWDVDFODVSGUDZVWKHKDLU

WRJHWKHUDQGKROGLWVRKHGUDZVPDQWRJHWKHUE\WKHVXSSRUWKHJLYHVWKHP

6L[LQWKHILIWKSODFHPHDQV

3HUVLVWHQWO\LOODQGVWLOOGRHVQRWGLH

+HUHHQWKXVLDVPLVREVWUXFWHG$PDQLVXQGHUFRQVWDQWSUHVVXUHZKLFK

SUHYHQWVKLPIURPEUHDWKLQJIUHHO\+RZHYHUWKLVSUHVVXUHKDVLWV

DGYDQWDJHLWSUHYHQWVKLPIURPFRQVXPLQJKLVSRZHUVLQHPSW\

HQWKXVLDVP7KXVFRQVWDQWSUHVVXUHFDQDFWXDOO\VHUYHWRNHHSRQHDOLYH

6L[DWWKHWRSPHDQV

'HOXGHGHQWKXVLDVP

%XWLIDIWHUFRPSOHWLRQRQHFKDQJHV

7KHUHLVQREODPH

,WLVDEDGWKLQJIRUDPDQWROHWKLPVHOIEHGHOXGHGE\HQWKXVLDVP%XWLIWKLV

GHOXVLRQKDVUXQLWVFRXUVHDQGKHLVVWLOOFDSDEOHRIFKDQJLQJWKHQKHLV

IUHHGRIHUURU$VREHUDZDNHQLQJIURPIDOVHHQWKXVLDVPLVTXLWHSRVVLEOHDQG

YHU\IDYRUDEOH

LQGH[

6XL)ROORZLQJ

DERYH78,7+(-2<286/$.(

EHORZ&+r17+($5286,1*7+81'(5

7KHWULJUDP7XLWKH-R\RXVZKRVHDWWULEXWHLVJODGQHVVLVDERYH&KrQWKH

$URXVLQJZKLFKKDVWKHDWWULEXWHRIPRYHPHQWLVEHORZ-R\LQPRYHPHQW

LQGXFHVIROORZLQJ7KH-R\RXVLVWKH\RXQJHVWGDXJKWHUZKLOHWKH$URXVLQJ

LVWKHHOGHVWVRQ$QROGHUPDQGHIHUVWRD\RXQJJLUODQGVKRZVKHU

FRQVLGHUDWLRQ%\WKLVKHPRYHVKHUWRIROORZKLP

background image

7+(-8'*0(17

)2//2:,1*KDVVXSUHPHVXFFHVV

3HUVHYHUDQFHIXUWKHUV1REODPH

,QRUGHUWRREWDLQDIROORZLQJRQHPXVWILUVWNQRZKRZWRDGDSWRQHVHOI,ID

PDQZRXOGUXOHKHPXVWILUVWOHDUQWRVHUYHIRURQO\LQWKLVZD\GRHVKH

VHFXUHIURPWKRVHEHORZKLPWKHMR\RXVDVVHQWWKDWLVQHFHVVDU\LIWKH\DUHWR

IROORZKLP,IKHKDVWRREWDLQDIROORZLQJE\IRUFHRUFXQQLQJE\FRQVSLUDF\

RUE\FUHDWLQJIDFWLRQKHLQYDULDEO\DURXVHVUHVLVWDQFHZKLFKREVWUXFWV

ZLOOLQJDGKHUHQFH%XWHYHQMR\RXVPRYHPHQWFDQOHDGWRHYLO

FRQVHTXHQFHVKHQFHWKHDGGHGVWLSXODWLRQ3HUVHYHUDQFHIXUWKHUVWKDWLV

FRQVLVWHQF\LQGRLQJULJKWWRJHWKHUZLWK1REODPH-XVWDVZHVKRXOGQRW

DVNRWKHUVWRIROORZXVXQOHVVWKLVFRQGLWLRQLVIXOILOOHGVRLWLVRQO\XQGHU

WKLVFRQGLWLRQWKDWZHFDQLQWXUQIROORZRWKHUVZLWKRXWFRPLQJWRKDUP

7KHWKRXJKWRIREWDLQLQJDIROORZLQJWKURXJKDGDSWDWLRQWRWKHGHPDQGVRI

WKHWLPHLVDJUHDWDQGVLJQLILFDQWLGHDWKLVLVZK\WKHDSSHQGHGMXGJPHQWLV

VRIDYRUDEOH

7+(,0$*(

7KXQGHULQWKHPLGGOHRIWKHODNH

7KHLPDJHRI)2//2:,1*

7KXVWKHVXSHULRUPDQDWQLJKWIDOO

*RHVLQGRRUVIRUUHVWDQGUHFXSHUDWLRQ

,QWKHDXWXPQHOHFWULFLW\ZLWKGUDZVLQWRWKHHDUWKDJDLQDQGUHVWV+HUHLWLV

WKHWKXQGHULQWKHPLGGOHRIWKHODNHWKDWVHUYHVDVWKHLPDJHWKXQGHULQLWV

ZLQWHUUHVWQRWWKXQGHULQPRWLRQ7KHLGHDRIIROORZLQJLQWKHVHQVHRI

DGDSWDWLRQWRWKHGHPDQGVRIWKHWLPHJURZVRXWRIWKLVLPDJH7KXQGHULQ

WKHPLGGOHRIWKHODNHLQGLFDWHVWLPHVRIGDUNQHVVDQGUHVW6LPLODUO\D

VXSHULRUPDQDIWHUEHLQJWLUHOHVVO\DFWLYHDOOGD\DOORZVKLPVHOIUHVWDQG

UHFXSHUDWLRQDWQLJKW1RVLWXDWLRQFDQEHFRPHIDYRUDEOHXQWLORQHLVDEOHWR

DGDSWWRLWDQGGRHVQRWZHDUKLPVHOIRXWZLWKPLVWDNHQUHVLVWDQFH

7+(/,1(6

ƒ1LQHDWWKHEHJLQQLQJPHDQV

7KHVWDQGDUGLVFKDQJLQJ

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7RJRRXWRIWKHGRRULQFRPSDQ\

3URGXFHVGHHGV

7KHUHDUHH[FHSWLRQDOFRQGLWLRQVLQZKLFKWKHUHODWLRQEHWZHHQOHDGHUDQG

IROORZHUVFKDQJHV,WLVLPSOLFLWLQWKHLGHDRIIROORZLQJDQGDGDSWDWLRQWKDWLI

RQHZDQWVWROHDGRWKHUVRQHPXVWUHPDLQDFFHVVLEOHDQGUHVSRQVLYHWRWKH

YLHZVRIWKRVHXQGHUKLP$WWKHVDPHWLPHKRZHYHUKHPXVWKDYHILUP

background image

SULQFLSOHVVRWKDWKHGRHVQRWYDFLOODWHZKHUHWKHUHLVRQO\DTXHVWLRQRI

FXUUHQWRSLQLRQ2QFHZHDUHUHDG\WROLVWHQWRWKHRSLQLRQVRIRWKHUVZH

PXVWQRWDVVRFLDWHH[FOXVLYHO\ZLWKSHRSOHZKRVKDUHRXUYLHZVRUZLWK

PHPEHUVRIRXURZQSDUW\LQVWHDGZHPXVWJRRXWDQGPLQJOHIUHHO\ZLWK

DOOVRUWVRISHRSOHIULHQGVRUIRHV7KDWLVWKHRQO\ZD\WRDFKLHYHVRPHWKLQJ

6L[LQWKHVHFRQGSODFHPHDQV

,IRQHFOLQJVWRWKHOLWWOHER\

2QHORVHVWKHVWURQJPDQ

,QIULHQGVKLSVDQGFORVHUHODWLRQVKLSVDQLQGLYLGXDOPXVWPDNHDFDUHIXO

FKRLFH+HVXUURXQGVKLPVHOIHLWKHUZLWKJRRGRUZLWKEDGFRPSDQ\KH

FDQQRWKDYHERWKDWRQFH,IKHWKURZVKLPVHOIDZD\RQXQZRUWK\IULHQGVKH

ORVHVFRQQHFWLRQZLWKSHRSOHRILQWHOOHFWXDOSRZHUZKRFRXOGIXUWKHUKLPLQ

WKHJRRG

6L[LQWKHWKLUGSODFHPHDQV

,IRQHFOLQJVWRWKHVWURQJPDQ

2QHORVHVWKHOLWWOHER\

7KURXJKIROORZLQJRQHILQGVZKDWRQHVHHNV

,WIXUWKHUVRQHWRUHPDLQSHUVHYHULQJ

:KHQWKHULJKWFRQQHFWLRQZLWKGLVWLQJXLVKHGSHRSOHKDVEHHQIRXQGD

FHUWDLQORVVQDWXUDOO\HQVXHV$PDQPXVWSDUWFRPSDQ\ZLWKWKHLQIHULRU

DQGVXSHUILFLDO%XWLQKLVKHDUWKHZLOOIHHOVDWLVILHGEHFDXVHKHVHHNVDQG

QHHGVIRUWKHGHYHORSPHQWRIKLVSHUVRQDOLW\7KHLPSRUWDQWWKLQJLVWR

UHPDLQILUP+HPXVWNQRZZKDWKHZDQWVDQGQRWEHOHGDVWUD\E\

PRPHQWDU\LQFOLQDWLRQV

1LQHLQWKHIRXUWKSODFHPHDQV

)ROORZLQJFUHDWHVVXFFHVV

3HUVHYHUDQFHEULQJVPLVIRUWXQH

7RJRRQHVZD\ZLWKVLQFHULW\EULQJVFODULW\

+RZFRXOGWKHUHEHEODPHLQWKLV"

,WRIWHQKDSSHQVZKHQDPDQH[HUWVDFHUWDLQDPRXQWRILQIOXHQFHWKDWKH

REWDLQVDIROORZLQJE\FRQGHVFHQVLRQWRZDUGLQIHULRUV%XWWKHSHRSOHZKR

DWWDFKWKHPVHOYHVWRKLPDUHQRWKRQHVWLQWKHLULQWHQWLRQV7KH\VHHN

SHUVRQDODGYDQWDJHDQGWU\WRPDNHWKHPVHOYHVLQGLVSHQVDEOHWKURXJK

IODWWHU\DQGVXEVHUYLHQFH,IRQHEHFRPHVDFFXVWRPHGWRVXFKVDWHOOLWHVDQG

FDQQRWGRZLWKRXWWKHPLWEULQJVPLVIRUWXQH2QO\ZKHQDPDQLV

FRPSOHWHO\IUHHIURPKLVHJRDQGLQWHQWE\FRQYLFWLRQXSRQZKDWLVULJKW

DQGHVVHQWLDOGRHVKHDFTXLUHWKHFODULW\WKDWHQDEOHVKLPWRVHHWKURXJKVXFK

SHRSOHDQGEHFRPHIUHHRIEODPH

ƒ1LQHLQWKHILIWKSODFHPHDQV

6LQFHUHLQWKHJRRG*RRGIRUWXQH

background image

(YHU\PDQPXVWKDYHVRPHWKLQJKHIROORZVVRPHWKLQJWKDWVHUYHVKLPDVD

ORGHVWDU+HZKRIROORZVZLWKFRQYLFWLRQWKHEHDXWLIXODQGWKHJRRGPD\IHHO

KLPVHOIVWUHQJWKHQHGE\WKLVVD\LQJ

6L[DWWKHWRSPHDQV

+HPHHWVZLWKILUPDOOHJLDQFH

$QGLVVWLOOIXUWKHUERXQG

7KHNLQJLQWURGXFHVKLP

7RWKH:HVWHUQ0RXQWDLQ

7KLVUHIHUVWRDPDQDQH[DOWHGVDJHZKRKDVDOUHDG\SXWWKHWXUPRLORIWKH

ZRUOGEHKLQGKLP%XWDIROORZHUDSSHDUVZKRXQGHUVWDQGVKLPDQGLVQRW

WREHSXWRII6RWKHVDJHFRPHVEDFNLQWRWKHZRUOGDQGDLGVWKHRWKHULQKLV

ZRUN7KXVWKHUHGHYHORSVDQHWHUQDOWLHEHWZHHQWKHWZR

7KHDOOHJRU\LVFKRVHQIURPWKHDQQDOVRIWKH&KRXG\QDVW\7KHUXOHUVRI

WKLVG\QDVW\KRQRUHGPHQZKRKDGVHUYHGWKHPZHOOE\DZDUGLQJWKHPD

SODFHLQWKHUR\DOIDPLO\VWHPSOHRIDQFHVWRUVRQWKH:HVWHUQ0RXQWDLQ,Q

WKLVZD\WKH\ZHUHUHJDUGHGDVVKDULQJLQWKHGHVWLQ\RIWKHUXOLQJIDPLO\

LQGH[

.X:RUNRQZKDWKDVEHHQVSRLOHG>'HFD\@

DERYH.rQ.((3,1*67,//02817$,1

EHORZ6XQ7+(*(17/(:,1'

7KH&KLQHVHFKDUDFWHUNXUHSUHVHQWVDERZOLQZKRVHFRQWHQWVZRUPVDUH

EUHHGLQJ7KLVPHDQVGHFD\,7LVFRPHDERXWEHFDXVHWKHJHQWOHLQGLIIHUHQFH

LQWKHORZHUWULJUDPKDVFRPHWRJHWKHUZLWKWKHULJLGLQHUWLDRIWKHXSSHU

DQGWKHUHVXOWLVVWDJQDWLRQ6LQFHWKLVLPSOLHVJXLOWWKHFRQGLWLRQVHPERG\D

GHPDQGIRUUHPRYDORIWKHFDXVH+HQFHWKHPHDQLQJRIWKHKH[DJUDPLVQRW

VLPSO\ZKDWKDVEHHQVSRLOHGEXWZRUNRQZKDWKDVEHHQVSRLOHG

7+(-8'*0(17

:25.21:+$7+$6%((1632,/('

+DVVXSUHPHVXFFHVV

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

%HIRUHWKHVWDUWLQJSRLQWWKUHHGD\V

$IWHUWKHVWDUWLQJSRLQWWKUHHGD\V

:KDWKDVEHHQVSRLOHGWKURXJKPDQVIDXOWFDQEHPDGHJRRGDJDLQWKURXJK

PDQVZRUN,7LVQRWLPPXWDEOHIDWHDVLQWKHWLPHRI67$1'67,//WKDW

KDVFDXVHGWKHVWDWHRIFRUUXSWLRQEXWUDWKHUWKHDEXVHRIKXPDQIUHHGRP

:RUNWRZDUGLPSURYLQJFRQGLWLRQVSURPLVHVZHOOEHFDXVHLWDFFRUGVWKH

SRVVLELOLWLHVRIWKHWLPH:HPXVWQRWUHFRLOIURPZRUNDQGGDQJHU

V\PEROL]HGE\FURVVLQJRIWKHJUHDWZDWHUEXWPXVWWDNHKROGHQHUJHWLFDOO\

background image

6XFFHVVGHSHQGVKRZHYHURQSURSHUGHOLEHUDWLRQ7KLVLVH[SUHVVHGE\WKH

OLQHV%HIRUHWKHVWDUWLQJSRLQWWKUHHGD\V$IWHUWKHVWDUWLQJSRLQWWKUHH

GD\V:HPXVWILUVWNQRZWKHFDXVHRIFRUUXSWLRQEHIRUHZHFDQGRDZD\

ZLWKWKHPKHQFHLWLVQHFHVVDU\WREHFDXWLRXVGXULQJWKHWLPHEHIRUHWKH

VWDUW7KHQZHPXVWVHHWRLWWKDWWKHQHZZD\LVVDIHO\HQWHUHGXSRQVRWKDW

DUHODSVHPD\EHDYRLGHGWKHUHIRUHZHPXVWSD\DWWHQWLRQWRWKHWLPHDIWHU

WKHVWDUW'HFLVLYHQHVVDQGHQHUJ\PXVWWDNHWKHSODFHRILQHUWLDDQG

LQGLIIHUHQFHWKDWKDYHOHGWRGHFD\LQRUGHUWKDWWKHHQGLQJPD\EHIROORZHG

E\DQHZEHJLQQLQJ

7+(,0$*(

7KHZLQGEORZVORZRQWKHPRXQWDLQ

7KHLPDJHRI'(&$<

7KXVWKHVXSHULRUPDQVWLUVXSWKHSHRSOH

$QGVWUHQJWKHQVWKHLUVSLULW

:KHQWKHZLQGEORZVVORZRQWKHPRXQWDLQLWLVWKURZQEDFNDQGVSRLOV

WKHYHJHWDWLRQ7KLVFRQWDLQVDFKDOOHQJHWRLPSURYHPHQW,WLVWKHVDPH

ZLWKGHEDVLQJDWWLWXGHVDQGIDVKLRQVWKH\FRUUXSWKXPDQVRFLHW\+LV

PHWKRGVOLNHZLVHPXVWEHGHULYHGIURPWKHWZRWULJUDPVEXWLQVXFKDZD\

WKDWWKHLUHIIHFWVXQIROGLQRUGHUO\VHTXHQFH7KHVXSHULRUPXVWILUVWUHPRYH

VWDJQDWLRQE\VWLUULQJXSSXEOLFRSLQLRQDVWKHZLQGVWLUVXSHYHU\WKLQJDQG

PXVWVWUHQJWKHQDQGWUDQTXLOL]HWKHFKDUDFWHURIWKHSHRSOHDVWKHPRXQWDLQ

JLYHVWUDQTXLOOLW\DQGQRXULVKPHQWWRDOOWKDWJURZVLQLWVYLFLQLW\

7+(/,1(6

6L[LQWKHEHJLQQLQJPHDQV

6HWWLQJULJKWZKDWKDVEHHQVSRLOHGE\WKHIDWKHU

,IWKHUHLVDVRQ

1REODPHUHVWVXSRQWKHGHSDUWHGIDWKHU

'DQJHU,QWKHHQGJRRGIRUWXQH

5LJLGDGKHUHQFHWRWUDGLWLRQKDVUHVXOWHGLQGHFD\%XWWKHGHFD\KDVQRW\HW

SHQHWUDWHGGHHSO\DQGVRFDQVWLOOEHHDVLO\UHPHGLHG,WLVDVLIDVRQZHUH

FRPSHQVDWHGIRUWKHGHFD\KLVIDWKHUDOORZHGWRFUHHSLQ7KHQQREODPH

DWWDFKHVWRWKHIDWKHU+RZHYHURQHPXVWQRWRYHUORRNWKHGDQJHURUWDNH

WKHPDWWHUWRROLJKWO\2QO\LIRQHLVFRQVFLRXVRIWKHGDQJHUFRQQHFWHGZLWK

HYHU\UHIRUPZLOOHYHU\WKLQJJRZHOOLQWKHHQG

1LQHLQWKHVHFRQGSODFHPHDQV

6HWWLQJULJKWZKDWKDVEHHQVSRLOHGE\WKHPRWKHU

2QHPXVWQRWEHWRRSHUVHYHULQJ

7KLVUHIHUVWRPLVWDNHVWKDWDVDUHVXOWRIZHDNQHVVKDYHEURXJKWDERXWGHFD\

KHQFHWKHV\PEROZKDWKDVEHHQVSRLOHGE\WKHPRWKHU,QVHWWLQJWKLQJV

ULJKWLQVXFKDFDVHDFHUWDLQJHQWOHFRQVLGHUDWLRQLVFDOOHGIRU,QRUGHUQRW

background image

WR

ZRXQGRQHVKRXOGQRWDWWHPSWWRSURFHHGWRRGUDVWLFDOO\

1LQHLQWKHWKLUGSODFHPHDQV

6HWWLQJULJKWZKDWKDVEHHQVSRLOHGE\WKHIDWKHU

7KHUHZLOOEHDOLWWOHUHPRUVH1RJUHDWEODPH

7KLVGHVFULEHVDPDQZKRSURFHHGVDOLWWOHWRRHQHUJHWLFDOO\LQULJKWLQJWKH

PLVWDNHVRIWKHSDVW1RZDQGWKHQDVDUHVXOWPLQRUGLVFRXUVHDQG

DQQR\DQFHVZLOOVXUHO\GHYHORS%XWWRRPXFKHQHUJ\LVEHWWHUWKDQWRROLWWOH

7KHUHIRUHDOWKRXJKKHPD\DWWLPHVKDYHVOLJKWFDXVHIRUUHJUHWKHUHPDLQV

IUHHRIDQ\VHULRXVEODPH

6L[LQWKHIRXUWKSODFHPHDQV

7ROHUDWLQJZKDWKDVEHHQVSRLOHGE\WKHIDWKHU

,QFRQWLQXLQJRQHVHHVKXPLOLDWLRQ

7KLVVKRZVWKHVLWXDWLRQRIVRPHRQHWRRZHDNWRWDNHPHDVXUHVDJDLQVWGHFD\

WKDWKDVLWVURRWVLQWKHSDVWDQGLVMXVWEHJLQQLQJWRPDQLIHVWLWVHOI,WLV

DOORZHGWRUXQLWVFRXUVH,IWKLVFRQWLQXHVKXPLOLDWLRQZLOOUHVXOW

ƒ6L[LQWKHILIWKSODFHPHDQV

6HWWLQJULJKWZKDWKDVEHHQVSRLOHGE\WKHIDWKHU

2QHPHHWVZLWKSUDLVH

$QLQGLYLGXDOLVFRQIURQWHGZLWKFRUUXSWLRQRULJLQDWLQJIURPQHJOHFWLQ

IRUPHUWLPHV+HODFNVWKHSRZHUWRZDUGLWRIIDORQHEXWZLWKDEOHKHOSHUV

KHFDQDWOHDVWEULQJDERXWDWKRURXJKUHIRUPLIKHFDQQRWFUHDWHDQHZ

EHJLQQLQJDQGWKLVDOVRLVSUDLVHZRUWK\

1LQHDWWKHWRSPHDQV

+HGRHVQRWVHUYHNLQJVDQGSULQFHV

6HWVKLPVHOIKLJKHUJRDOV

1RWHYHU\PDQKDVDQREOLJDWLRQWRPLQJOHLQWKHDIIDLUVRIWKHZRUOG7KHUH

DUHVRPHZKRDUHGHYHORSHGWRVXFKDGHJUHHWKDWWKH\DUHMXVWLILHGLQOHWWLQJ

WKHZRUOGJRLWVRZQZD\DQGUHIXVLQJWRHQWHUSXEOLFOLIHZLWKDYLHZWR

UHIRUPLQJLW%XWWKLVGRHVQRWLPSO\DULJKWWRUHPDLQLGOHRUWRVLWEDFNDQG

PHUHO\FULWLFL]H6XFKZLWKGUDZDOLVMXVWLILHGRQO\ZKHQZHVWULYHWRUHDOL]H

LQRXUVHOYHVWKHKLJKHUDLPVRIPDQNLQG)RUDOWKRXJKWKHVDJHUHPDLQV

GLVWDQWIURPWKHWXUPRLORIGDLO\OLIHKHFUHDWHVLQFRPSDUDEOHKXPDQYDOXHV

IRUWKHIXWXUH

LQGH[

/LQ$SSURDFK

background image

DERYH.817+(5(&(37,9(($57+

EHORZ78,7+(-2<286/$.(

7KH&KLQHVHZRUGOLQKDVDUDQJHRIPHDQLQJVWKDWLVQRWH[KDXVWHGE\DQ\

VLQJOHZRUGRIDQRWKHUODQJXDJH7KHDQFLHQWH[SODQDWLRQVLQWKH%RRNRI

&KDQJHVJLYHDVLWVILUVWPHDQLQJEHFRPLQJJUHDW:KDWEHFRPHVJUHDWDUH

WKHWZRVWURQJOLQHVJURZLQJLQWRWKHKH[DJUDPIURPEHORZWKHOLJKWJLYLQJ

SRZHUH[SDQGVZLWKWKHP7KHPHDQLQJLVWKHQIXUWKHUH[WHQGHGWRLQFOXGH

WKHFRQFHSWRIDSSURDFKHVSHFLDOO\WKHDSSURDFKRIZKDWLVORZHU)LQDOO\WKH

PHDQLQJLQFOXGHVWKHDWWLWXGHRIFRQGHVFHQVLRQRIDPDQLQKLJKSRVLWLRQ

WRZDUGWKHSHRSOHDQGLQJHQHUDOWKHVHWWLQJWRZRUNRQDIIDLUV7KLV

KH[DJUDPLVOLQNHGZLWKWKHWZHOIWKPRQWK-DQXDU\)HEUXDU\ZKHQDIWHU

WKHZLQWHUVROVWLFHWKHOLJKWSRZHUEHJLQVWRDVFHQGDJDLQ

7+(-8'*0(17

$3352$&+KDVVXSUHPHVXFFHVV

3HUVHYHUDQFHIXUWKHUV

:KHQWKHHLJKWKPRQWKFRPHV

7KHUHZLOOEHPLVIRUWXQH

7KHKH[DJUDPDVDZKROHSRLQWVWRDWLPHRIMR\RXVKRSHIXOSURJUHVV6SULQJ

LVDSSURDFKLQJ-R\DQGIRUEHDUDQFHEULQJKLJKDQGORZQHDUHUWRJHWKHU

6XFFHVVLVFHUWDLQ%XWZHPXVWZRUNZLWKGHWHUPLQDWLRQDQGSHUVHYHUDQFH

WRPDNHIXOOXVHRIWKHSURSLWLRXVQHVVRIWKHWLPH$QGRQWKLQJPRUH

VSULQJGRHVQRWODVWIRUHYHU,QWKHHLJKWKPRQWKWKHDVSHFWVDUHUHYHUVHG

7KHQRQO\WZRVWURQJOLJKWOLQHVDUHOHIWWKHVHGRQRWDGYDQFHEXWDUHLQ

UHWUHDWVHHQH[WKH[DJUDP:HPXVWWDNHKHHGRIWKLVFKDQJHLQJRRGWLPH

,IZHPHHWHYLOEHIRUHLWEHFRPHVUHDOLW\EHIRUHLWKDVHYHQEHJXQWRVWLUZH

FDQPDVWHULW

7+(,0$*(

7KHHDUWKDERYHWKHODNH

7KHLPDJHRI$3352$&+

7KXVWKHVXSHULRUPDQLVLQH[KDXVWLEOH

,QKLVZLOOWRWHDFK

$QGZLWKRXWOLPLWV

,QKLVWROHUDQFHDQGSURWHFWLRQRIWKHSHRSOH

7KHHDUWKERUGHUVXSRQWKHODNHIURPDERYH7KLVV\PEROL]HVWKHDSSURDFK

DQGFRQGHVFHQVLRQRIWKHPDQRIKLJKHUSRVLWLRQWRWKRVHEHQHDWKKLP7KH

WZRSDUWVRIWKHLPDJHLQGLFDWHZKDWKLVDWWLWXGHWRZDUGWKHVHSHRSOHZLOOEH

-XVWDVWKHODNHLVLQH[KDXVWLEOHLQGHSWKVRWKHVDJHLVLQH[KDXVWLEOHLQKLV

UHDGLQHVVWRWHDFKPDQNLQGDQGMXVWDVWKHHDUWKLVERXQGOHVVO\ZLGH

VXVWDLQLQJDQGFDULQJIRUDOOFUHDWXUHVRQLWVRWKHVDJHVXVWDLQVDQGFDUHVIRU

DOOSHRSOHDQGH[FOXGHVQRSDUWRIKXPDQLW\

background image

7+(/,1(6

ƒ1LQHDWWKHEHJLQQLQJPHDQV

-RLQWDSSURDFK

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHJRRGEHJLQVWRSUHYDLODQGWRILQGUHVSRQVHLQLQIOXHQWLDOFLUFOHV7KLVLQ

WXUQLVDQLQFHQWLYHWRPHQRIDELOLW\,7LVZHOOWRMRLQWKLVXSZDUGWUHQGEXW

ZHPXVWQRWOHWRXUVHOYHVEHFDUULHGDZD\E\WKHFXUUHQWRIWKHWLPHZHPXVW

DGKHUHSHUVHYHULQJO\WRZKDWLVULJKW7KLVEULQJJRRGIRUWXQH

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

-RLQWDSSURDFK

*RRGIRUWXQH

(YHU\WKLQJIXUWKHUV

:KHQWKHVWLPXOXVWRDSSURDFKFRPHVIURPDKLJKSODFHDQGZKHQDPDQ

KDVWKHLQQHUVWUHQJWKDQGFRQVLVWHQF\WKDWQHHGQRDGPRQLWLRQJRRG

IRUWXQHZLOOHQVXH1RUQHHGWKHIXWXUHFDXVHDQ\FRQFHUQ+HLVZHOODZDUH

WKDWHYHU\WKLQJHDUWKO\LVWUDQVLWRU\DQGWKDWDGHVFHQWIROORZVXSRQHYHU\

ULVHEXWQHHGQRWEHFRQIXVHGE\WKLVXQLYHUVDOODZRIIDWH(YHU\WKLQJVHUYHV

WRIXUWKHU7KHUHIRUHKHZLOOWUDYHOWKHSDWKVRIOLIHVZLIWO\KRQHVWO\DQG

YDOLDQWO\

6L[LQWKHWKLUGSODFHPHDQV

&RPIRUWDEOHDSSURDFK

1RWKLQJWKDWZRXOGIXUWKHU

,IRQHLVLQGXFHGWRJULHYHRYHULW

2QHEHFRPHVIUHHRIEODPH

7KLQJVDUHJRLQJZHOOIRUDPDQKHDFKLHYHVSRZHUDQGLQIOXHQFH%XWLQ

WKLVOLHVWKHGDQJHUWKDWKHPD\UHOD[DQGFRQILGHQWRIKLVSRVLWLRQDOORZWKH

HDV\JRLQJFDUHOHVVPRRGWRVKRZLWVHOILQKLVGHDOLQJVZLWKRWKHUSHRSOH

7KLVZRXOGLQHYLWDEO\EHKDUPIXO%XWWKHUHLVSRVVLELOLW\RIDFKDQJHRI

PRRG,IKHUHJUHWVKLVPLVWDNHQDWWLWXGHDQGIHHOVWKHUHVSRQVLELOLW\RIDQ

LQIOXHQWLDOSRVLWLRQKHIUHHVKLPVHOIRIIDXOWV

6L[LQWKHIRXUWKSODFHPHDQV

&RPSOHWHDSSURDFK

1REODPH

:KLOHWKHWKUHHORZHUOLQHVLQGLFDWHULVHWRSRZHUDQGLQIOXHQFHWKHWKUHH

XSSHUOLQHVVKRZWKHDWWLWXGHRISHUVRQVLQKLJKHUSRVLWLRQWRZDUGWKRVHRI

ORZHUUDQNIRUZKRPWKH\SURFXUHLQIOXHQFH+HUHLVVKRZQWKHRSHQ

PLQGHGDSSURDFKRIDSHUVRQRIKLJKUDQNWRDPDQRIDELOLW\ZKRPKHGUDZV

LQWRKLVRZQFLUFOHUHJDUGOHVVRIFODVVSUHMXGLFH7KLVLVYHU\IDYRUDEOH

6L[LQWKHILIWKSODFHPHDQV

background image

:LVHDSSURDFK

7KLVLVULJKWIRUDJUHDWSULQFH

*RRGIRUWXQH

$SULQFHRUDQ\RQHLQDOHDGLQJSRVLWLRQPXVWKDYHWKHZLVGRPWRDWWUDFWWR

KLPVHOISHRSOHRIDELOLW\ZKRDUHH[SHUWLQGLUHFWLQJDIIDLUV+LVZLVGRP

FRQVLVWVERWKLQVHOHFWLQJWKHULJKWSHRSOHDQGLQDOORZLQJWKRVHFKRVHQWR

KDYHDIUHHKDQGZLWKRXWLQWHUIHUHQFHIURPKLP)RURQO\WKURXJKVXFKVHOI

UHVWUDLQWZLOOKHILQGWKHH[SHUWVQHHGHGWRVDWLVI\DOORIKLVUHTXLUHPHQWV

6L[DWWKHWRSPHDQV

*UHDWKHDUWHGDSSURDFK

*RRGKHDUWHGDSSURDFK

*RRGIRUWXQH1REODPH

$VDJHZKRKDVSXWWKHZRUOGEHKLQGKLPDQGZKRLQVSLULWKDVDOUHDG\

ZLWKGUDZQIURPOLIHPD\XQGHUFHUWDLQFLUFXPVWDQFHVGHFLGHWRUHWXUQRQFH

PRUHWRWKHKHUHDQGQRZDQGWRDSSURDFKRWKHUPHQ7KLVPHDQVJUHDW

JRRGIRUWXQHIRUWKHPHQZKRPKHWHDFKHVDQGKHOSV$QGIRUKLPWKLVJUHDW

KHDUWHGKXPEOLQJRIKLPVHOILVEODPHOHVV

LQGH[

.XDQ&RQWHPSODWLRQ9LHZ

DERYH6817+(*(17/(:,1'

EHORZ7+(5(&(37,9(($57+

$VOLJKWYDULDWLRQRIWRQDOVWUHVVJLYHVWKH&KLQHVHQDPHIRUWKLVKH[DJUDPD

GRXEOHPHDQLQJ,WPHDQVERWKFRQWHPSODWLQJDQGEHLQJVHHQLQWKHVHQVH

RIEHLQJDQH[DPSOH7KHVHLGHDVDUHVXJJHVWHGE\WKHIDFWWKDWWKHKH[DJUDP

FDQEHXQGHUVWRRGDVSLFWXULQJDW\SHRIWRZHUFKDUDFWHULVWLFRIDQFLHQW&KLQD

$WRZHURIWKLVNLQGFRPPDQGHGDZLGHYLHZRIWKHFRXQWU\DWWKHVDPH

WLPHZKHQVLWXDWHGRQDPRXQWDLQLWEHFDPHDODQGPDUNWKDWFRXOGEHVHHQ

IRUPLOHVDURXQG7KXVWKHKH[DJUDPVKRZVDUXOHUZKRFRQWHPSODWHVWKH

ODZRIKHDYHQDERYHKLPDQGWKHZD\VRIWKHSHRSOHEHORZDQGZKRE\

PHDQVRIJRRGJRYHUQPHQWVHWVDORIW\H[DPSOHWRWKHPDVVHV

7KLVKH[DJUDPLVOLQNHGZLWKWKHHLJKWPRQWK6HSWHPEHU2FWREHU7KH

OLJKWJLYLQJSRZHUUHWUHDWVDQGWKHGDUNSRZHULVDJDLQRQWKHLQFUHDVH

+RZHYHUWKLVDVSHFWLVQRWPDWHULDOLQWKHLQWHUSUHWDWLRQRIWKHKH[DJUDPDVD

ZKROH

7+(-8'*0(17

background image

&217(03/$7,217KHDEOXWLRQKDVEHHQPDGH

%XWQRW\HWWKHRIIHULQJ

)XOORIWUXVWWKH\ORRNXSWRKLP

7KHVDFULILFLDOULWXDOLQ&KLQDEHJDQZLWKDQDEOXWLRQDQGDOLEDWLRQE\ZKLFK

WKH'HLW\ZDVLQYRNHGDIWHUZKLFKWKHVDFULILFHZDVRIIHUHG7KHPRPHQWRI

WLPHEHWZHHQWKHVHWZRFHUHPRQLHVLVWKHPRVWVDFUHGRIDOOWKHPRPHQWRI

GHHSHVWLQQHUFRQFHQWUDWLRQ,ISLHW\LVVLQFHUHDQGH[SUHVVLYHRIUHDOIDLWK

WKH

FRQWHPSODWLRQRILWKDVDWUDQVIRUPLQJDZHVSLULQJHIIHFWRQWKRVHZKR

ZLWQHVVLW

7KXVDOVRLQQDWXUHDKRO\VHULRXVQHVVLVWREHVHHQLQWKHIDFWWKDWQDWXUDO

RFFXUUHQFHVDUHXQLIRUPO\VXEMHFWWRODZ&RQWHPSODWLRQRIWKHGLYLQH

PHDQLQJXQGHUO\LQJWKHZRUNLQJVRIWKHXQLYHUVHJLYHVWRWKHPDQZKRLV

FDOOHGXSRQWRLQIOXHQFHRWKHUVWKHPHDQVRISURGXFLQJOLNHHIIHFWV7KLV

UHTXLUHVWKDWSRZHURILQQHUFRQFHQWUDWLRQZKLFKUHOLJLRXVFRQWHPSODWLRQ

GHYHORSVLQJUHDWPHQVWURQJLQIDLWK,WHQDEOHVWKHPWRDSSUHKHQGWKH

P\VWHULRXVDQGGLYLQHODZVRIOLIHDQGE\PHDQVRISURIRXQGHVWLQQHU

FRQFHQWUDWLRQWKH\JLYHH[SUHVVLRQWRWKHVHODZVLQWKHLURZQSHUVRQV7KXV

DKLGGHQVSLULWXDOSRZHUHPDQDWHVIURPWKHPLQIOXHQFLQJDQGGRPLQDWLQJ

RWKHUVZLWKRXWWKHLUEHLQJDZDUHRIKRZLWKDSSHQV

7+(,0$*(

7KHZLQGEORZVRYHUWKHHDUWK

7KHLPDJHRI&217(03/$7,21

7KXVWKHNLQJVRIROGYLVLWHGWKHUHJLRQVRIWKHZRUOG

&RQWHPSODWHGWKHSHRSOH

$QGJDYHWKHPLQVWUXFWLRQ

:KHQWKHZLQGEORZVRYHUWKHHDUWKLWJRHVIDUDQGZLGHDQGWKHJUDVVPXVW

EHQGWRLWVSRZHU7KHVHWZRRFFXUUHQFHVILQGFRQILUPDWLRQLQWKHKH[DJUDP

7KHWZRLPDJHVDUHXVHGWRV\PEROL]HDSUDFWLFHRIWKHNLQJVRIROGLQPDNLQJ

UHJXODUMRXUQH\VWKHUXOHUFRXOGLQWKHILUVWSODFHVXUYH\KLVUHDOPDQGPDNH

FHUWDLQWKDWQRQHRIWKHH[LVWLQJXVDJHVRIWKHSHRSOHHVFDSHGQRWLFHLQWKH

VHFRQGKHFRXOGH[HUWLQIOXHQFHWKURXJKZKLFKVXFKFXVWRPVDVZHUH

XQVXLWDEOHFRXOGEHFKDQJHG

$OORIWKLVSRLQWVWRWKHSRZHUSRVVHVVHGE\DVXSHULRUSHUVRQDOLW\2QWKH

RQHKDQGVXFKDPDQZLOOKDYHDYLHZRIWKHUHDOVHQWLPHQWVRIWKHJUHDW

PDVVRIKXPDQLW\DQGWKHUHIRUHFDQQRWEHGHFHLYHGRQWKHRWKHUKHZLOO

LPSUHVVWKHSHRSOHVRSURIRXQGO\E\KLVPHUHH[LVWHQFHDQGE\WKHLPSDFWRI

KLVSHUVRQDOLW\WKDWWKH\ZLOOEHVZD\HGE\KLPDVWKHJUDVVE\WKHZLQG

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

%R\OLNHFRQWHPSODWLRQ

background image

)RUDQLQIHULRUPDQQREODPH

)RUDVXSHULRUPDQKXPLOLDWLRQ

7KLVPHDQVFRQWHPSODWLRQIURPDGLVWDQFHZLWKRXWFRPSUHKHQVLRQ$PDQ

RILQIOXHQFHLVDWKDQGDEXWKLVLQIOXHQFHLVQRWXQGHUVWRRGE\WKHFRPPRQ

SHRSOH7KLVPDWWHUVOLWWOHLQWKHFDVHRIWKHPDVVHVIRUWKH\EHQHILWE\WKH

DFWLRQVRIWKHUXOLQJVDJHZKHWKHUWKH\XQGHUVWDQGWKHPRUQRW%XWIRUD

VXSHULRUPDQLWLVDGLVJUDFH+HPXVWQRWFRQWHQWKLPVHOIZLWKDVKDOORZ

WKRXJKWOHVVYLHZRISUHYDLOLQJIRUFHVKHPXVWFRQWHPSODWHWKHPDVD

FRQQHFWHGZKROHDQGWU\WRXQGHUVWDQGWKHP

6L[LQWKHVHFRQGSODFHPHDQV

&RQWHPSODWLRQWKURXJKWKHFUDFNRIWKHGRRU

)XUWKHULQJIRUWKHSHUVHYHUDQFHRIDZRPDQ

7KURXJKWKHFUDFNRIWKHGRRURQHKDVDOLPLWHGRXWORRNRQHORRNVRXWZDUG

IURPZLWKLQ&RQWHPSODWLRQLVVXEMHFWLYHO\OLPLWHG2QHWHQGVWRUHODWH

HYHU\WKLQJWRRQHVHOIDQGFDQQRWSXWRQHVHOILQDQRWKHUVSODFHDQG

XQGHUVWDQGKLVPRWLYHV7KLVLVDSSURSULDWHIRUDJRRGKRXVHZLIH,WLVQRW

QHFHVVDU\IRUKHUWREHFRQYHUVDQWZLWKWKHDIIDLUVRIWKHZRUOG%XWIRUDPDQ

ZKRPXVWWDNHDFWLYHSDUWLQSXEOLFOLIHVXFKDQDUURZHJRWLVWLFZD\RI

FRQWHPSODWLQJWKLQJVLVRIFRXUVHKDUPIXO

6L[LQWKHWKLUGSODFHPHDQV

&RQWHPSODWLRQRIP\OLIH

'HFLGHVWKHFKRLFH

%HWZHHQDGYDQFHDQGUHWUHDW

7KLVLVWKHSODFHRIWUDQVLWLRQ:HQRORQJHUORRNRXWZDUGWRUHFHLYHSLFWXUHV

WKDWDUHPRUHRUOHVVOLPLWHGDQGFRQIXVHGEXWGLUHFWRXWFRQWHPSODWLRQXSRQ

RXUVHOYHVLQRUGHUWRILQGDJXLGHOLQHIRURXUGHFLVLRQV7KLVVHOI

FRQWHPSODWLRQPHDQVWKHRYHUFRPLQJRIQDLYHHJRWLVPLQWKHSHUVRQZKR

VHHVHYHU\WKLQJVROHO\IRUPKLVRZQVWDQGSRLQW+HEHJLQVWRUHIOHFWDQGLQ

WKLVZD\DFTXLUHVREMHFWLYLW\+RZHYHUVHOINQRZOHGJHGRHVQRWPHDQ

SUHRFFXSDWLRQZLWKRQHVRZQWKRXJKWVUDWKHULWPHDQVFRQFHUQDERXWWKH

HIIHFWVRQHFUHDWHV,WLVRQO\WKHHIIHFWVRXUOLYHVSURGXFHWKDWJLYHXVWKH

ULJKWWRMXGJHZKHWKHUZKDWZHKDYHGRQHPHDQVSURJUHVVRUUHJUHVVLRQ

6L[LQWKHIRXUWKSODFHPHDQV

&RQWHPSODWLRQRIWKHOLJKWRIWKHNLQJGRP

,WIXUWKHUVRQHWRH[HUWLQIOXHQFHDVWKHJXHVWRIDNLQJ

7KLVGHVFULEHVDPDQZKRXQGHUVWDQGVWKHVHFUHWVE\ZKLFKDNLQJGRPFDQEH

PDGHWRIORXULVK6XFKDPDQPXVWEHJLYHQDQDXWKRULWDWLYHSRVLWLRQLQ

ZKLFKKHFDQH[HUWLQIOXHQFH+HVKRXOGEHVRWRVSHDNDJXHVWWKDWLVKH

VKRXOGEHKRQRUHGDQGDFWLQGHSHQGHQWO\DQGVKRXOGQRWEHXVHGDVDWRRO

ƒ1LQHDWWKHWRSPHDQV

&RQWHPSODWLRQRIKLVOLIH

background image

7KHVXSHULRUPDQLVZLWKRXWEODPH

:KLOHWKHSUHFHGLQJOLQHUHSUHVHQWVDPDQZKRFRQWHPSODWHVKLPVHOIKHUH

LQWKHKLJKHVWSODFHHYHU\WKLQJWKDWLVSHUVRQDOUHODWHGWRWKHHJRLVH[FOXGHG

7KHSLFWXUHLVWKDWRIDVDJHZKRVWDQGVRXWVLGHWKHDIIDLUVRIWKHZRUOG

/LEHUDWHGIURPKLVHJRKHFRQWHPSODWHVWKHODZVRIOLIHDQGVRUHDOL]HVWKDW

NQRZLQJKRZWREHFRPHIUHHRIEODPHLVWKHKLJKHVWJRRG

LQGH[

6KLK+R%LWLQJ7KURXJK

DERYH/,7+(&/,1*,1*),5(

EHORZ&+r17+($5286,1*7+81'(5

7KLVKH[DJUDPUHSUHVHQWVDQRSHQPRXWKFIKH[DJUDPZLWKDQ

REVWUXFWLRQLQWKHIRXUWKSODFHEHWZHHQWKHWHHWK$VDUHVXOWWKHOLSVFDQQRW

PHHW7REULQJWKHPWRJHWKHURQHPXVWELWHHQHUJHWLFDOO\WKURXJKWKH

REVWDFOH6LQFHWKHKH[DJUDPLVPDGHXSRIWKHWULJUDPVIRUWKXQGHUDQGIRU

OLJKWQLQJLWLQGLFDWHVKRZREVWDFOHVDUHIRUFLEO\UHPRYHGLQQDWXUH

(QHUJHWLFELWLQJWKURXJKRYHUFRPHVWKHREVWDFOHWKDWSUHYHQWVMRLQLQJRIWKH

OLSVWKHVWRUPZLWKLWVWKXQGHUDQGOLJKWQLQJRYHUFRPHVWKHGLVWXUELQJ

WHQVLRQLQQDWXUH5HFRXUVHWRODZDQGSHQDOWLHVRYHUFRPHVWKHGLVWXUEDQFHV

RIKDUPRQLRXVVRFLDOOLIHFDXVHGE\FULPLQDOVDQGVODQGHUHUV7KHWKHPHRI

WKLVKH[DJUDPLVDFULPLQDOODZVXLWLQFRQWUDGLVWLQFWLRQWRWKDWRI6XQJ

&21)/,&7ZKLFKUHIHUVWRFLYLOVXLWV

7+(-8'*0(17

%,7,1*7+528*+KDVVXFFHVV

,WLVIDYRUDEOHWROHWMXVWLFHEHDGPLQLVWHUHG

:KHQDQREVWDFOHWRXQLRQDULVHVHQHUJHWLFELWLQJWKURXJKEULQJVVXFFHVV

7KLVLVWUXHLQDOOVLWXDWLRQV:KHQHYHUXQLW\FDQQRWEHHVWDEOLVKHGWKH

REVWUXFWLRQLVGXHWRDWDOHEHDUHUDQGWUDLWRUZKRLVLQWHUIHULQJDQGEORFNLQJ

WKHZD\7RSUHYHQWSHUPDQHQWLQMXU\YLJRURXVPHDVXUHVPXVWEHWDNHQDW

RQFH'HOLEHUDWHREVWUXFWLRQRIWKLVVRUWGRHVQRWYDQLVKRILWVRZQDFFRUG

-XGJPHQWDQGSXQLVKPHQWDUHUHTXLUHGWRGHWHURUREYLDWHLW

+RZHYHULWLVLPSRUWDQWWRSURFHHGLQWKHULJKWZD\7KHKH[DJUDP

FRPELQHV/LFODULW\DQG&KrQH[FLWHPHQW/LLV\LHOGLQJ&KrQLVKDUG

8QTXDOLILHGKDUGQHVVDQGH[FLWHPHQWZRXOGEHWRRYLROHQWLQPHWLQJRXW

SXQLVKPHQWXQTXDOLILHGFODULW\DQGJHQWOHQHVVZRXOGEHWRRZHDN7KHWZR

WRJHWKHUFUHDWHWKHMXVWPHDVXUH,WLVRIPRPHQWWKDWWKHPDQZKRPDNHV

WKHGHFLVLRQVUHSUHVHQWHGE\WKHILIWKOLQHLVJHQWOHE\QDWXUHZKLOHKH

FRPPDQGVUHVSHFWE\KLVFRQGXFWLQKLVSRVLWLRQ

7+(,0$*(

background image

1LQHDWWKHEHJLQQLQJPHDQV

+LVIHHWDUHIDVWHQHGLQWKHVWRFNV

6RWKDWKLVWRHVGLVDSSHDU

1REODPH

,IDVHQWHQFHLVLPSRVHGWKHILUVWWLPHDPDQDWWHPSWVWRGRZURQJWKH

SHQDOW\LVDPLOGRQH2QO\WKHWRHVDUHSXWLQWKHVWRFNV7KLVSUHYHQWVKLP

IURPVLQQLQJIXUWKHUDQGWKXVKHEHFRPHVIUHHRIEODPH,WLVDZDUQLQJWR

KDOWLQWLPHRQWKHSDWKRIHYLO

6L[LQWKHVHFRQGSODFHPHDQV

%LWHVRQROGGULHGPHDW

$QGVWULNHVRQVRPHWKLQJSRLVRQRXV

6OLJKWKXPLOLDWLRQ1REODPH

3XQLVKPHQWLVWREHFDUULHGRXWE\VRPHRQHZKRODFNVWKHSRZHUDQG

DXWKRULW\WRGRVR7KHUHIRUHWKHFXOSULWVGRQRWVXEPLW7KHPDWWHUDWLVVXH

LVDQROGRQHDVV\PEROL]HGE\VDOWHGJDPHDQGLQGHDOLQJZLWKLWGLIILFXOWLHV

DULVH7KLVROGPHDWLVVSRLOHGE\WDNLQJXSWKHSUREOHPWKHSXQLVKHUDURXVHV

SRLVRQRXVKDWUHGDJDLQVWKLPVHOIDQGQWKLVZD\LVSXWLQDVRPHZKDW

KXPLOLDWLQJSRVLWLRQ%XWVLQFHSXQLVKPHQWZDVUHTXLUHGE\WKHWLPHKH

UHPDLQVIUHHRIEODPH

1LQHLQWKHIRXUWKSODFHPHDQV

%LWHVRQGULHGJULVWO\PHDW

5HFHLYHVPHWDODUURZV

,WIXUWKHUVRQHWREHPLQGIXORIGLIILFXOWLHV

$QGWREHSHUVHYHULQJ

*RRGIRUWXQH

7KHUHDUHJUHDWREVWDFOHVWREHRYHUFRPHSRZHUIXORSSRQHQWVDUHWREH

SXQLVKHG7KRXJKWKLVLVDUGXRXVWKHHIIRUWVXFFHHGV%XWLWLVQHFHVVDU\WR

EHKDUGDVPHWDODQGVWUDLJKWDVDQDUURZWRVXUPRXQWWKHGLIILFXOWLHV,IRQH

NQRZVWKHVHGLIILFXOWLHVDQGUHPDLQVSHUVHYHULQJKHDWWDLQVJRRGIRUWXQH

7KHGLIILFXOWWDVNLVDFKLHYHGLQWKHHQG

ƒ6L[LQWKHILIWKSODFHPHDQV

%LWHVRQGULHGOHDQPHDW

5HFHLYHV\HOORZJROG

3HUVHYHULQJO\DZDUHRIGDQJHU

1REODPH

7KHFDVHWREHGHFLGHGLVLQGHHGQRWHDV\EXWSHUIHFWO\FOHDU6LQFHZH

QDWXUDOO\LQFOLQHWROHQLHQF\ZHPXVWPDNHHYHU\HIIRUWWREHOLNH\HOORZ

JROGWKDWLVDVWUXHDVJROGDQGDVLPSDUWLDODV\HOORZWKHFRORURIWKHPLGGOH

>WKHPHDQ@,WLVRQO\E\UHPDLQLQJFRQVFLRXVRIWKHGDQJHUVJURZLQJRXWRI

WKHUHVSRQVLELOLW\ZHKDYHDVVXPHGWKDWZHFDQDYRLGPDNLQJPLVWDNHV

background image

1LQHDWWKHWRSPHDQV

+LVQHFNLVIDVWHQHGLQWKHZRRGHQFDQJXH

6RWKDWKLVHDUVGLVDSSHDU

0LVIRUWXQH

,QFRQWUDVWWRWKHILUVWOLQHWKLVOLQHUHIHUVWRDPDQZKRLVLQFRUULJLEOH+LV

SXQLVKPHQWLVWKHZRRGHQFDQJXHDQGKLVHDUVGLVDSSHDUXQGHULWWKDWLVWR

VD\KHLVGHDIWRZDUQLQJV7KLVREVWLQDF\OHDGVWRPLVIRUWXQH

LQGH[

3L*UDFH

DERYH.r1.((3,1*67,//02817$,1

EHORZ/,7+(&/,1*,1*),5(

7KLVKH[DJUDPVKRZVDILUHWKDWEUHDNVRXWRIWKHVHFUHWGHSWKVRIWKHHDUWK

DQGEOD]LQJXSLOOXPLQDWHVDQGEHDXWLILHVWKHPRXQWDLQWKHKHDYHQO\

KHLJKWV*UDFHEHDXW\RIIRUPLVQHFHVVDU\LQDQ\XQLRQLILWLVWREHZHOO

RUGHUHGDQGSOHDVLQJUDWKHUWKDQGLVRUGHUHGDQGFKDRWLF

7+(-8'*0(17

*5$&(KDVVXFFHVV

,QVPDOOPDWWHUV

,WLVIDYRUDEOHWRXQGHUWDNHVRPHWKLQJ

*UDFHEULQJVVXFFHVV+RZHYHULWLVQRWWKHHVVHQWLDORUIXQGDPHQWDOWKLQJLW

LVRQO\WKHRUQDPHQWDQGWKHUHIRUHEHXVHGVSDULQJO\DQGRQO\LQOLWWOHWKLQJV

,QWKHORZHUWULJUDPRIILUHD\LHOGLQJOLQHFRPHVEHWZHHQWZRVWURQJOLQHV

DQGPDNHVWKHPEHDXWLIXOEXWWKHVWURQJOLQHVDUHWKHHVVHQWLDOFRQWHQWDQG

WKHZHDNOLQHLVWKHEHDXWLI\LQJIRUP,QWKHXSSHUWULJUDPRIWKHPRXQWDLQ

WKHVWURQJOLQHWDNHVWKHOHDGVRWKDWKHUHDJDLQWKHVWURQJHOHPHQWPXVWEH

UHJDUGHGDVWKHGHFLVLYHIDFWRU,QQDWXUHZHVHHLQWKHVN\WKHVWURQJOLJKWRI

WKHVXQWKHOLIHRIWKHZRUOGGHSHQGVRQLW%XWWKLVVWURQJHVVHQWLDOWKLQJLV

FKDQJHGDQGJLYHQSOHDVLQJYDULHW\E\WKHPRRQDQGWKHVWDUV,QKXPDQ

DIIDLUVDHVWKHWLFIRUPFRPHVLQWREHLQJZKHQWUDGLWLRQVH[LVWWKDWVWURQJDQG

DELGLQJOLNHPRXQWDLQVDUHPDGHSOHDVLQJE\DOXFLGEHDXW\%\

FRQWHPSODWLQJWKHIRUPVH[LVWLQJLQWKHKHDYHQVZHFRPHWRXQGHUVWDQGWLPH

DQGLWVFKDQJLQJGHPDQGV7KURXJKFRQWHPSODWLRQRIWKHIRUPVH[LVWLQJLQ

KXPDQVRFLHW\LWEHFRPHVSRVVLEOHWRVKDSHWKHZRUOG

7+(,0$*(

)LUHDWWKHIRRWRIWKHPRXQWDLQ

7KHLPDJHRI*5$&(

background image

7KXVGRHVWKHVXSHULRUPDQSURFHHG

:KHQFOHDULQJXSFXUUHQWDIIDLUV

%XWKHGDUHQRWGHFLGHFRQWURYHUVLDOLVVXHVLQWKLVZD\

7KHILUHZKRVHOLJKWLOOXPLQDWHVWKHPRXQWDLQDQGPDNHVLWSOHDVLQJGRHV

QRWVKLQHIDULQWKHVDPHZD\EHDXWLIXOIRUPVXIILFHVWREULJKWHQDQGWR

WKURZOLJKWXSRQPDWWHUVRIOHVVHUPRPHQWEXWLPSRUWDQWTXHVWLRQVFDQQRW

EHGHFLGHGLQWKLVZD\7KH\UHTXLUHJUHDWHUHDUQHVWQHVV

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

+HOHQGVJUDFHWRKLVWRHVOHDYHVWKHFDUULDJHDQGZDONV

$EHJLQQHULQVXERUGLQDWHSODFHPXVWWDNHXSRQKLPVHOIWKHODERURI

DGYDQFLQJ7KHUHPLJKWEHDQRSSRUWXQLW\RIVXUUHSWLWLRXVO\HDVLQJWKHZD\

V\PEROL]HGE\WKHFDUULDJHEXWDVHOIFRQWDLQHGPDQVFRUQVKHOSJDLQHGLQD

GXELRXVIDVKLRQ+HWKLQNVLWPRUHJUDFHIXOWRJRRQIRRWWKDQWRGULYHLQD

FDUULDJHXQGHUIDOVHSUHWHQVHV

ƒ6L[LQWKHVHFRQGSODFHPHDQV

/HQGVJUDFHWRWKHEHDUGRQKLVFKLQ

7KHEHDUGLVQRWDQLQGHSHQGHQWWKLQJLWPRYHVRQO\ZLWKWKHFKLQ7KH

LPDJHWKHUHIRUHPHDQVWKDWIRUPLVWREHFRQVLGHUHGRQO\DVDUHVXOWDQG

DWWULEXWHRIFRQWHQW7KHEHDUGLVDVXSHUIOXRXVRUQDPHQW7RGHYRWHFDUHWR

LW

IRULWVRZQVDNHZLWKRXWUHJDUGIRUWKHLQQHUFRQWHQWRIZKLFKLWLVDQ

RUQDPHQWZRXOGEHVSHDNDFHUWDLQYDQLW\

1LQHLQWKHWKLUGSODFHPHDQV

*UDFHIXODQGPRLVW

&RQVWDQWSHUVHYHUDQFHEULQJVJRRGIRUWXQH

7KLVUHSUHVHQWVDYHU\FKDUPLQJOLIHVLWXDWLRQ2QHLVXQGHUWKHVSHOORIJUDFH

DQGWKHPHOORZPRRGLQGXFHGE\ZLQH7KLVJUDFHFDQDGRUQEXWLWFDQDOVR

VZDPSXV+HQFHWKHZDUQLQJQRWWRVLQNLQWRFRQYLYLDOLQGROHQFHEXWWR

UHPDLQFRQVWDQWLQSHUVHYHUDQFH*RRGIRUWXQHGHSHQGVRQWKLV

6L[LQWKHIRXUWKSODFHPHDQV

*UDFHRUVLPSOLFLW\"

$ZKLWHKRUVHFRPHVDVLIRQZLQJV

+HLVQRWDUREEHU

+HZLOOZRRDWWKHULJKWWLPH

$QLQGLYLGXDOLVLQDVLWXDWLRQLQZKLFKGRXEWVDULVHDVWRZKLFKLVEHWWHUWR

SXUVXHWKHJUDFHRIH[WHUQDOEULOOLDQFHRUWRUHWXUQWRVLPSOLFLW\7KHGRXEW

LWVHOILPSOLHVWKHDQVZHU&RQILUPDWLRQFRPHVIURPWKHRXWVLGHLWFRPHVOLNH

background image

DZKLWHZLQJHGKRUVH7KHZKLWHFRORULQGLFDWHVVLPSOLFLW\$WILUVWLWPD\EH

GLVDSSRLQWLQJWRUHQRXQFHWKHFRPIRUWVWKDWPLJKWKDYHEHHQREWDLQHG\HW

RQHILQGVSHDFHRIPLQGLQDWUXHUHODWLRQVKLSZLWKWKHIULHQGZKRFRXUWV

KLP7KHZLQJHGKRUVHLVWKHV\PERORIWKHWKRXJKWVWKDWWUDQVFHQGDOOOLPLWV

RIVSDFHDQGWLPH

6L[LQWKHILIWKSODFHPHDQV

*UDFHLQWKHKLOOVDQGJDUGHQV

7KHUROORIVLONLVPHDJHUDQGVPDOO

+XPLOLDWLRQEXWLQWKHHQGJRRGIRUWXQH

$PDQZLWKGUDZVIURPFRQWDFWZLWKSHRSOHRIWKHORZODQGVZKRVHHN

QRWKLQJEXWPDJQLILFHQFHDQGOX[XU\LQWRWKHVROLWXGHRIWKHKHLJKWV7KHUH

KHILQGVDQLQGLYLGXDOWRORRNXSWRZKRPKHZRXOGOLNHWRKDYHDVDIULHQG

%XWWKHJLIWVKHKDVWRRIIHUDUHSRRUDQGIHZVRWKDWKHIHHOVDVKDPHG

+RZHYHULWLVQRWWKHPDWHULDOJLIWVWKDWFRXQWEXWVLQFHULW\RIIHHOLQJDQGVR

DOOJRHVZHOOLQWKHHQG

ƒ1LQHDWWKHWRSPHDQV

6LPSOHJUDFH1REODPH

+HUHDWWKHKLJKHVWVWDJHRIGHYHORSPHQWDOORUQDPHQWLVGLVFDUGHG)RUPQR

ORQJHUFRQFHDOVFRQWHQWEXWEULQJVRXWLWVYDOXHWRWKHIXOO3HUIHFWJUDFH

FRQVLVWVQRWLQH[WHULRURUQDPHQWDWLRQRIWKHVXEVWDQFHEXWLQWKHVLPSOH

ILWQHVVRILWVIRUP

LQGH[

3R6SOLWWLQJ$SDUW

DERYH.r1.((3,1*67,//02817$,1

EHORZ/,7+(&/,1*,1*),5(

7KHGDUNOLQHVDUHDERXWWRPRXQWXSZDUGDQGRYHUWKURZWKHODVWILUPOLJKW

OLQHE\H[HUWLQJDGLVLQWHJUDWLQJLQIOXHQFHRQLW7KHLQIHULRUGDUNIRUFHV

RYHUFRPHZKDWLVVXSHULRUDQGVWURQJQRWE\GLUHFWPHDQVEXWE\

XQGHUPLQLQJLWJUDGXDOO\DQGLPSHUFHSWLEO\VRWKDWLWILQDOO\FROODSVHV

7KHOLQHVRIWKHKH[DJUDPSUHVHQWWKHLPDJHRIDKRXVHWKHWRSOLQHEHLQJ

WKHURRIDQGEHFDXVHWKHURRILVEHLQJVKDWWHUHGWKHKRXVHFROODSVHV7KH

KH[DJUDPEHORQJVWRWKHQLQWKPRQWK2FWREHU1RYHPEHU7KH\LQSRZHU

SXVKHVXSHYHUPRUHSRZHUIXOO\DQGLVDERXWWRVXSSODQWWKH\DQJSRZHU

DOWRJHWKHU

7+(-8'*0(17

63/,77,1*$3$57,7GRHVQRWIXUWKHURQH

background image

7RJRDQ\ZKHUH

7KLVSLFWXUHVDWLPHZKHQLQIHULRUSHRSOHDUHSXVKLQJIRUZDUGDQGDUHDERXW

WRFURZGRXWWKHIHZUHPDLQLQJVWURQJDQGVXSHULRUPHQ8QGHUWKHVH

FLUFXPVWDQFHVZKLFKDUHGXHWRWKHWLPHLWLVQRWIDYRUDEOHIRUWKHVXSHULRU

PDQWRXQGHUWDNHDQ\WKLQJ

7KHULJKWEHKDYLRULQVXFKDGYHUVHWLPHVLVWREHGHGXFHGIURPWKHLPDJHV

DQGWKHLUDWWULEXWHV7KHORZHUWULJUDPVWDQGVIRUWKHHDUWKZKRVHDWWULEXWHV

7KHORZHUWULJUDPVWDQGVIRUWKHHDUWKZKRVHDWWULEXWHVDUHGRFLOLW\DQG

GHYRWLRQ7KHXSSHUWULJUDPVWDQGVIRUWKHPRXQWDLQZKRVHDWWULEXWHLV

VWLOOQHVV7KLVVXJJHVWVWKDWRQHVKRXOGVXEPLWWRWKHEDGWLPHDQGUHPDLQ

TXLHW)RULWLVDTXHVWLRQQRWRIPDQVGRLQJEXWRIWLPHFRQGLWLRQVZKLFK

DFFRUGLQJWRWKHODZVRIKHDYHQVKRZDQDOWHUQDWLRQRILQFUHDVHDQG

GHFUHDVH

IXOOQHVVDQGHPSWLQHVV,WLVLPSRVVLEOHWRFRXQWHUDFWWKHVHFRQGLWLRQVRIWKH

WLPH+HQFHLWLVQRWFRZDUGLFHEXWZLVGRPWRVXEPLWDQGDYRLGDFWLRQ

7+(,0$*(

7KHPRXQWDLQUHVWVRQWKHHDUWK

7KHLPDJHRI63/,77,1*$3$57

7KXVWKRVHDERYHFDQHQVXUHWKHLUSRVLWLRQ

2QO\E\JLYLQJJHQHURXVO\WRWKRVHEHORZ

7KHPRXQWDLQUHVWVRQWKHHDUWK:KHQLWLVVWHHSDQGQDUURZODFNLQJD

EURDGEDVHLWPXVWWRSSOHRYHU,WVSRVLWLRQLVVWURQJRQO\ZKHQLWULVHVRXWRI

WKHHDUWKEURDGDQGJUHDWQRWSURXGDQGVWHHS6ROLNHZLVHWKRVHZKRUXOH

UHVWRQWKHEURDGIRXQGDWLRQRIWKHSHRSOH7KH\WRRVKRXOGEHJHQHURXVDQG

EHQHYROHQWOLNHWKHHDUWKWKDWFDUULHVDOO7KHQWKH\ZLOOPDNHWKHLUSRVLWLRQ

DVVHFXUHDVDPRXQWDLQLVLQLWVWUDQTXLOOLW\

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

7KHOHJRIWKHEHGLVVSOLW

7KRVHZKRSHUVHYHUHDUHGHVWUR\HG

0LVIRUWXQH

,QIHULRUSHRSOHDUHRQWKHULVHDQGVWHDOWKLO\EHJLQWKHLUGHVWUXFWLYH

EXUURZLQJIURPEHORZLQRUGHUWRXQGHUPLQHWKHSODFHZKHUHWKHVXSHULRU

PDQUHVWV7KRVHIROORZHUVRIWKHUXOHUZKRUHPDLQOR\DODUHGHVWUR\HGE\

VODQGHUDQGLQWULJXH7KHVLWXDWLRQERGHVGLVDVWHU\HWWKHUHLVQRWKLQJWRGR

EXWZDLW

6L[LQWKHVHFRQGSODFHPHDQV

7KHEHGLVVSOLWDWWKHHGJH

7KRVHZKRSHUVHYHUHDUHGHVWUR\HG

0LVIRUWXQH

background image

7KHSRZHURIWKHLQIHULRUSHRSOHLVJURZLQJ7KHGDQJHUGUDZVFORVHWRRQHV

SHUVRQDOUHDG\WKHUHDUHFOHDULQGLFDWLRQDQGUHVWLVGLVWXUEHG0RUHRYHULQ

WKLVGDQJHURXVVLWXDWLRQRQHLVDV\HWZLWKRXWKHOSRUIULHQGO\DGYDQFHVIURP

DERYHRUEHORZ([WUHPHFDXWLRQLVQHFHVVDU\LQWKLVLVRODWLRQ2QHPXVW

DGMXVWWRWKHWLPHDQGSURPSWO\DYRLGWKHGDQJHU6WXEERUQSHUVHYHUDQFHLQ

PDLQWDLQLQJRQHVVWDQGSRLQWZRXOGOHDGWRGRZQIDOO

6L[LQWKHWKLUGSODFHPHDQV

+HVSOLWVZLWKWKHP1REODPH

$QLQGLYLGXDOILQGVKLPVHOILQDQHYLOHQYLURQPHQWWRZKLFKKHLV

FRPPLWWHGE\H[WHUQDOWLHV%XWKHKDVDQLQQHUUHODWLRQVKLSZLWKDVXSHULRU

PDQDQGWKURXJKWKLVKHDWWDLQVWKHVWDELOLW\WRIUHHKLPVHOIIURPWKHZD\RI

WKHLQIHULRUSHRSOHDURXQGKLP7KLVEULQJVKLPLQWRRSSRVLWLRQWRWKHPRI

FRXUVHEXWWKDWLVQRWZURQJ

6L[LQWKHIRXUWKSODFHPHDQV

7KHEHGLVVSOLWXSWRWKHVNLQ

0LVIRUWXQH

+HUHWKHGLVDVWHUDIIHFWVQRWRQO\WKHUHVWLQJSODFHEXWHYHQWKHRFFXSDQW1R

ZDUQLQJRURWKHUFRPPHQWLVDGGHG0LVIRUWXQHKDVUHDFKHGLWVSHDNLWFDQ

QRORQJHUEHZDUGHGRII

6L[LQWKHILIWKSODFHPHDQV

$VKRDORIILVKHV)DYRUFRPHVWKURXJKWKHFRXUWODGLHV

(YHU\WKLQJDFWVWRIXUWKHU

+HUHLQLPPHGLDWHSUR[LPLW\WRWKHVWURQJOLJKWJLYLQJSULQFLSOHDWWKHWRS

WKHQDWXUHRIWKHGDUNIRUFHXQGHUJRHVDFKDQJH,WQRORQJHURSSRVHVWKH

VWURQJSULQFLSOHE\PHDQVRILQWULJXHVEXWVXEPLWVWRLWVJXLGDQFH,QGHHGDV

WKHKHDGRIWKHRWKHUZHDNOLQHVLWOHDGVDOORIWKHVHWRWKHVWURQJOLQHMXVWDV

DSULQFHVVOHDGVKHUPDLGVLQZDLWLQJOLNHDVKRDORIILVKHVWRKHUKXVEDQGDQG

WKXVJDLQVKLVIDYRU,QDVPXFKDVWKHORZHUHOHPHQWWKXVYROXQWDULO\SODFHV

LWVHOIXQGHUWKHKLJKHULWDWWDLQVKDSSLQHVVDQGWKHKLJKHUDOVRUHFHLYHVLWV

GXH7KHUHIRUHDOOJRHVZHOO

ƒ1LQHDWWKHWRSPHDQV

7KHUHLVDODUJHIUXLWVWLOOXQHDWHQ

7KHVXSHULRUPDQUHFHLYHVDFDUULDJH

7KHKRXVHRIWKHLQIHULRUPDQLVVSOLWDSDUW

+HUHWKHVSOLWWLQJDSDUWUHDFKHVLWVHQG:KHQPLVIRUWXQHKDVVSHQWLWVHOI

EHWWHUWLPHVUHWXUQ7KHVHHGRIWKHJRRGUHPDLQVDQGLWLVMXVWZKHQWKH

IUXLWIDOOVWRWKHJURXQGWKDWIRRGVSURXWVDQHZIURPLWVVHHG7KHVXSHULRU

PDQDJDLQDWWDLQVLQIOXHQFHDQGHIIHFWLYHQHVV+HLVVXSSRUWHGE\SXEOLF

RSLQLRQDVLILQDFDUULDJH%XWWKHLQIHULRUPDQVZLFNHGQHVVLVYLVLWHGXSRQ

background image

KLPVHOI+LVKRXVHLVVSOLWDSDUW$ODZRIQDWXUHLVDWZRUNKHUH(YLOLVQRW

GHVWUXFWLYHWRWKHJRRGDORQHEXWLQHYLWDEO\GHVWUR\VLWVHOIDVZHOO)RUHYLO

ZKLFKOLYHVVROHO\E\QHJDWLRQFDQQRWFRQWLQXHWRH[LVWRQLWVRZQVWUHQJWK

DORQH7KHLQIHULRUPDQKLPVHOIIDUHVEHVWZKHQKHOGXQGHUFRQWUROE\D

VXSHULRUPDQ

LQGH[

)X5HWXUQ7KH7XUQLQJ3RLQW

DERYH.817+(5(&(37,9(($57+

EHORZ&+r17+($5286,1*7+81'(5

7KHLGHDRIDWXUQLQJSRLQWDULVHVIURPWKHIDFWWKDWDIWHUWKHGDUNOLQHVKDYH

SXVKHGDOORIWKHOLJKWOLQHVXSZDUGDQGRXWRIWKHKH[DJUDPDQRWKHUOLJKW

OLQHHQWHUVWKHKH[DJUDPIURPEHORZ7KHWLPHRIGDUNQHVVLVSDVW7KH

ZLQWHUVROVWLFHEULQJVWKHYLFWRU\RIOLJKW7KLVKH[DJUDPLVOLQNHGZLWKWKH

HOHYHQWKPRQWKWKHPRQWKRIWKHVROVWLFH'HFHPEHU-DQXDU\

7+(-8'*0(17

5(78516XFFHVV

*RLQJRXWDQGFRPLQJLQZLWKRXWHUURU

)ULHQGVFRPHZLWKRXWEODPH

7RDQGIURJRHVWKHZD\

2QWKHVHYHQWKGD\FRPHVUHWXUQ

,WIXUWKHUVRQHWRKDYHVRPHZKHUHWRJR

$IWHUDWLPHRIGHFD\FRPHVWKHWXUQLQJSRLQW7KHSRZHUIXOOLJKWWKDWKDV

EHHQEDQLVKHGUHWXUQV7KHUHLVPRYHPHQWEXWLWLVQRWEURXJKWDERXWE\

IRUFH7KHXSSHUWULJUDP.XQLVFKDUDFWHUL]HGE\GHYRWLRQWKXVWKH

PRYHPHQWLVQDWXUDODULVLQJVSRQWDQHRXVO\)RUWKLVUHDVRQWKH

WUDQVIRUPDWLRQRIWKHROGEHFRPHVHDV\7KHROGLVGLVFDUGHGDQGWKHQHZLV

LQWURGXFHG%RWKPHDVXUHVDFFRUGZLWKWKHWLPHWKHUHIRUHQRKDUPUHVXOWV

6RFLHWLHVRISHRSOHVKDULQJWKHVDPHYLHZVDUHIRUPHG%XWVLQFHWKHVH

JURXSVFRPHWRJHWKHULQIXOOSXEOLFNQRZOHGJHDQGDUHLQKDUPRQ\ZLWKWKH

WLPHDOOVHOILVKVHSDUDWLVWWHQGHQFLHVDUHH[FOXGHGDQGQRPLVWDNHLVPDGH

7KHLGHDRI5(7851LVEDVHGRQWKHFRXUVHRIQDWXUH7KHPRYHPHQWLV

F\FOLFDQGWKHFRXUVHFRPSOHWHVLWVHOI7KHUHIRUHLWLVQRWQHFHVVDU\WRKDVWHQ

DQ\WKLQJDUWLILFLDOO\(YHU\WKLQJFRPHVRILWVHOIDWWKHDSSRLQWHGWLPH7KLVLV

WKHPHDQLQJRIKHDYHQDQGHDUWK

$OOPRYHPHQWVDUHDFFRPSOLVKHGLQVL[VWDJHVDQGWKHVHYHQWKEULQJV

UHWXUQ7KXVWKHZLQWHUVROVWLFHZLWKZKLFKWKHGHFOLQHRIWKH\HDUEHJLQV

FRPHVLQWKHVHYHQWKPRQWKDIWHUWKHVXPPHUVROVWLFHVRWRRVXQULVHFRPHV

LQWKHVHYHQWKGRXEOHKRXUDIWHUVXQVHW7KHUHIRUHVHYHQLVWKHQXPEHURI

WKH\RXQJOLJKWDQGLWDULVHVZKHQVL[WKHQXPEHURIWKHJUHDWGDUNQHVVLV

LQFUHDVHGE\RQH,QWKLVZD\WKHVWDWHRIUHVWJLYHVSODFHWRPRYHPHQW

background image

7+(,0$*(

7KXQGHUZLWKLQWKHHDUWK

7KHLPDJHRI7+(7851,1*32,17

7KXVWKHNLQJVRIDQWLTXLW\FORVHGWKHSDVVHV

$WWKHWLPHRIVROVWLFH

0HUFKDQWVDQGVWUDQJHUVGLGQRWJRDERXW

$QGWKHUXOHU

'LGQRWWUDYHOWKURXJKWKHSURYLQFHV

7KHZLQWHUVROVWLFHKDVDOZD\VEHHQFHOHEUDWHGLQ&KLQDDVWKHUHVWLQJWLPHRI

WKH\HDUDFXVWRPWKDWVXUYLYHVLQWKHWLPHRIUHVWREVHUYHGDWWKHQHZ\HDU

,QZLQWHUWKHOLIHHQHUJ\V\PEROL]HGE\WKXQGHUWKH$URXVLQJLVVWLOO

XQGHUJURXQG0RYHPHQWLVMXVWDWLWVEHJLQQLQJWKHUHIRUHLWPXVWEH

VWUHQJWKHQHGE\UHVWVRWKDWLWZLOOQRWEHGLVVLSDWHGE\EHLQJXVHG

SUHPDWXUHO\7KLVSULQFLSOHLHRIDOORZLQJHQHUJ\WKDWLVUHQHZLQJLWVHOIWR

EHUHLQIRUFHGE\UHVWDSSOLHVWRDOOVLPLODUVLWXDWLRQV7KHUHWXUQRIKHDOWK

DIWHULOOQHVVWKHUHWXUQRIXQGHUVWDQGLQJDIWHUDQHVWUDQJHPHQWHYHU\WKLQJ

PXVWEHWUHDWHGWHQGHUO\DQGZLWKFDUHDWWKHEHJLQQLQJVRWKDWWKHUHWXUQ

PD\OHDGWRDIORZHULQJ

7+(/,1(6

ƒ1LQHDWWKHEHJLQQLQJPHDQV

5HWXUQIURPDVKRUWGLVWDQFH

1RQHHGIRUUHPRUVH

*UHDWJRRGIRUWXQH

6OLJKWGLJUHVVLRQVIURPWKHJRRGFDQQRWEHDYRLGHGEXWRQHPXVWWXUQEDFN

LQWLPHEHIRUHJRLQJWRRIDU7KLVLVHVSHFLDOO\LPSRUWDQWLQWKHGHYHORSPHQW

RIFKDUDFWHUHYHU\IDLQWO\HYLOWKRXJKWPXVWEHSXWDVLGHLPPHGLDWHO\EHIRUH

LWJRHVWRRIDUDQGWDNHVURRWLQWKHPLQG7KHQWKHUHLVQRFDXVHIRUUHPRUVH

DQGDOOJRHVZHOO

6L[LQWKHVHFRQGSODFHPHDQV

4XLHWUHWXUQ*RRGIRUWXQH

5HWXUQDOZD\VFDOOVIRUDGHFLVLRQDQGLVDQDFWRIVHOIPDVWHU\,WLVPDGH

HDVLHULIDPDQLVLQJRRGFRPSDQ\,IKHFDQEULQJKLPVHOIWRSXWDVLGHSULGH

DQGIROORZWKHH[DPSOHRIJRRGPHQJRRGIRUWXQHUHVXOWV

6L[LQWKHWKLUGSODFHPHDQV

5HSHDWHGUHWXUQ'DQJHU1REODPH

7KHUHDUHSHRSOHRIDFHUWDLQLQQHULQVWDELOLW\ZKRIHHODFRQVWDQWXUJHWR

UHYHUVHWKHPVHOYHV7KHUHLVGDQJHULQFRQWLQXDOO\GHVHUWLQJWKHJRRG

background image

EHFDXVHRIXQFRQWUROOHGGHVLUHVWKHQWXUQLQJEDFNWRLWDJDLQEHFDXVHRID

EHWWHUUHVROXWLRQ+RZHYHUVLQFHWKLVGRHVQRWOHDGWRKDELWXDWLRQLQHYLOD

JHQHUDOLQFOLQDWLRQWRRYHUFRPHWKHGHIHFWLVQRWZKROO\H[FOXGHG

6L[LQWKHIRXUWKSODFHPHDQV

:DONLQJLQWKHPLGVWRIRWKHUV

2QHUHWXUQVDORQH

$PDQLVLQDVRFLHW\FRPSRVHGRILQIHULRUSHRSOHEXWLVFRQQHFWHGVSLULWXDOO\

ZLWKDVWURQJDQGJRRGIULHQGDQGWKLVPDNHVKLPWXUQEDFNDORQH

$OWKRXJKQRWKLQJLVVDLGRIUHZDUGDQGSXQLVKPHQWWKLVUHWXUQLVFHUWDLQO\

IDYRUDEOHIRUVXFKDUHVROYHWRFKRRVHWKHJRRGEULQJVLWVRZQUHZDUG

6L[LQWKHILIWKSODFHPHDQV

1REOHKHDUWHGUHWXUQ1RUHPRUVH

:KHQWKHWLPHIRUUHWXUQKDVFRPHDPDQVKRXOGQRWWDNHVKHOWHULQWULYLDO

H[FXVHVEXWVKRXOGORRNZLWKLQDQGH[DPLQHKLPVHOI$QGLIKHKDVGRQH

VRPHWKLQJZURQJKHVKRXOGPDNHDQREOHKHDUWHGUHVROYHWRFRQIHVVKLVIDXOW

1RRQHZLOOUHJUHWKDYLQJWDNHQWKLVURDG

6L[DWWKHWRSPHDQV

0LVVLQJWKHUHWXUQ0LVIRUWXQH

0LVIRUWXQHIURPZLWKLQDQGZLWKRXW

,IDUPLHVDUHVHWPDUFKLQJLQWKLVZD\

2QHZLOOLQWKHHQGVXIIHUDJUHDWGHIHDW

'LVDVWURXVIRUWKHUXOHURIWKHFRXQWU\

)RUWHQ\HDUV

,WZLOOQRWEHSRVVLEOHWRDWWDFNDJDLQ

,IDPDQPLVVHVWKHULJKWWLPHIRUUHWXUQKHPHHWVZLWKPLVIRUWXQH7KH

PLVIRUWXQHKDVLWVLQQHUFDXVHLQDZURQJDWWLWXGHWRZDUGWKHZRUOG7KH

PLVIRUWXQHFRPLQJXSRQKLPIRUZLWKRXWUHVXOWVIURPWKLVZURQJDWWLWXGH

:KDWLVSLFWXUHGKHUHLVEOLQGREVWLQDF\DQGWKHMXGJPHQWWKDWLVYLVLWHG

XSRQLW

LQGH[

:X:DQJ,QQRFHQFH7KH8QH[SHFWHG

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ&+r17+($5286,1*7+81'(5

&KLHQKHDYHQLVDERYH&KrQPRYHPHQWLVEHORZ7KHORZHUWULJUDP

&KrQLVXQGHUWKHLQIOXHQFHRIWKHVWURQJOLQHLWKDVUHFHLYHGIRUPDERYH

IURPKHDYHQ:KHQLQDFFRUGZLWKWKLVPRYHPHQWIROORZVWKHODZRI

KHDYHQPDQLVLQQRFHQWDQGZLWKRXWJXLOH+LVPLQGLVQDWXUDODQGWUXH

background image

XQVKDGRZHGE\UHIOHFWLRQRUXOWHULRUGHVLJQV)RUZKHUHYHUFRQVFLRXV

SXUSRVHLVWREHVHHQWKHUHWKHWUXWKDQGLQQRFHQFHRIQDWXUHKDYHEHHQORVW

1DWXUHWKDWLVQRWGLUHFWHGE\WKHVSLULWLVQRWWUXHEXWGHJHQHUDWHQDWXUH

6WDUWLQJRXWZLWKWKHLGHDRIWKHQDWXUDOWKHWUDLQRIWKRXJKWLQSDUWJRHV

VRPHZKDWIXUWKHUDQGWKXVWKHKH[DJUDPLQFOXGHVDOVRWKHLGHDRIWKH

IXQGDPHQWDORUXQH[SHFWHG

7+(-8'*0(17

,112&(1&(6XSUHPHVXFFHVV

3HUVHYHUDQFHIXUWKHUV

,IVRPHRQHLVQRWDVKHVKRXOGEH

+HKDVPLVIRUWXQH

$QGLWGRHVQRWIXUWKHUKLP

7RXQGHUWDNHDQ\WKLQJ

0DQKDVUHFHLYHGIURPKHDYHQDQDWXUHLQQDWHO\JRRGWRJXLGHKLPLQDOOKLV

PRYHPHQWV%\GHYRWLRQWRWKLVGLYLQHVSLULWZLWKLQKLPVHOIKHDWWDLQVDQ

XQVXOOLHGLQQRFHQFHWKDWOHDGVKLPWRGRULJKWZLWKLQVWLQFWLYHVXUHQHVVDQG

ZLWKRXWDQ\XOWHULRUWKRXJKWRIUHZDUGDQGSHUVRQDODGYDQWDJH7KLV

LQVWLQFWLYHFHUWDLQW\EULQJVDERXWVXSUHPHVXFFHVVDQGIXUWKHUVWKURXJK

SHUVHYHUDQFH+RZHYHUQRWHYHU\WKLQJLQVWLQFWLYHLVQDWXUHLQWKLVKLJKHU

VHQVHRIWKHZRUGEXWRQO\WKDWZKLFKLVULJKWDQGLQDFFRUGZLWKWKHZLOORI

KHDYHQ:LWKRXWWKLVTXDOLW\RIULJKWQHVVDQXQUHIOHFWLQJLQVWLQFWLYHZD\RI

DFWLQJEULQJVRQO\PLVIRUWXQH&RQIXFLXVVD\VDERXWWKLV+HZKRGHSDUWV

IURPLQQRFHQFHZKDWGRHVKHFRPHWR"+HDYHQVZLOODQGEOHVVLQJGRQRWJR

ZLWKKLVGHHGV

7+(,0$*(

8QGHUKHDYHQWKXQGHUUROOV

$OOWKLQJVDWWDLQWKHQDWXUDOVWDWHRILQQRFHQFH

7KXVWKHNLQJVRIROG

5LFKLQYLUWXHDQGLQKDUPRQ\ZLWKWKHWLPH

)RVWHUHGDQGQRXULVKHGDOOEHLQJV

,QVSULQJWLPHZKHQWKXQGHUOLIHHQHUJ\EHJLQVWRPRYHDJDLQXQGHUWKH

KHDYHQVHYHU\WKLQJVSURXWVDQGJURZVDQGDOOEHLQJVUHFHLYHIRUWKHFUHDWLYH

DFWLYLW\RIQDWXUHWKHFKLOGOLNHLQQRFHQFHRIWKHLURULJLQDOVWDWH6RLWLVZLWK

WKHJRRGUXOHUVRIPDQNLQGGUDZLQJRQWKHVSLULWXDOZHDOWKDWWKHLU

FRPPDQGWKH\WDNHFDUHRIDOOIRUPVRIOLIHDQGDOOIRUPVRIFXOWXUHDQGGR

HYHU\WKLQJWRIXUWKHUWKHPDQGDWWKHSURSHUWLPH

7+(/,1(6

ƒ1LQHDWWKHEHJLQQLQJPHDQV

,QQRFHQWEHKDYLRUEULQJVJRRGIRUWXQH

background image

7KHRULJLQDOLPSXOVHVRIWKHKHDUWDUHDOZD\VJRRGVRWKDWZHPD\IROORZ

WKHPFRQILGHQWO\DVVXUHGRIJRRGIRUWXQHDQGDFKLHYHPHQWRIRXUDLPV

6L[LQWKHVHFRQGSODFHPHDQV

,IRQHGRHVQRWFRXQWRQWKHKDUYHVWZKLOHSORZLQJ

1RURQWKHXVHRIWKHJURXQGZKLOHFOHDULQJLW

,WIXUWKHUVRQHWRXQGHUWDNHVRPHWKLQJ

:HVKRXOGGRHYHU\WDVNIRULWVRZQVDNHDVWLPHDQGSODFHGHPDQGDQGQRW

ZLWKDQH\HWRWKHUHVXOW7KHQHDFKWDVNWXUQVRXWZHOODQGDQ\WKLQJZH

XQGHUWDNHVXFFHHGV

6L[LQWKHWKLUGSODFHPHDQV

8QGHVHUYHGPLVIRUWXQH

7KHFRZWKDWZDVWHWKHUHGE\VRPHRQH

,VWKHZDQGHUHUVJDLQWKHFLWL]HQVORVV

6RPHWLPHVXQGHVHUYHGPLVIRUWXQHEHIDOOVDPDQDWWKHKDQGVRIDQRWKHUDV

IRULQVWDQFHZKHQVRPHRQHSDVVHVE\DQGWDNHVDWHWKHUHGFRZDORQJZLWK

KLP+LVJDLQLVWKHRZQHUVORVV,QDOOWUDQVDFWLRQVQRPDWWHUKRZ

LQQRFHQWZHPXVWDFFRPPRGDWHRXUVHOYHVWRWKHGHPDQGVRIWKHWLPH

RWKHUZLVHXQH[SHFWHGPLVIRUWXQHRYHUWDNHVXV

1LQHLQWKHIRXUWKSODFHPHDQV

+HZKRFDQEHSHUVHYHULQJ

5HPDLQVZLWKRXWEODPH

:HFDQQRWORVHZKDWUHDOO\EHORQJVWRXVHYHQLIZHWKURZLWDZD\

7KHUHIRUHZHQHHGKDYHQRDQ[LHW\$OOWKDWQHHGFRQFHUQXVLVWKDWZH

VKRXOGUHPDLQWUXHWRRXURZQQDWXUHVDQGQRWOLVWHQWRRWKHUV

ƒ1LQHLQWKHILIWKSODFHPHDQV

8VHQRPHGLFLQHLQDQLOOQHVV

,QFXUUHGWKURXJKQRIDXOWRI\RXURZQ

,WZLOOSDVVRILWVHOI

$QXQH[SHFWHGHYLOPD\FRPHDFFLGHQWDOO\IURPZLWKRXW,ILWGRHVQRW

RULJLQDWHLQRQHVRZQQDWXUHRUKDYHDIRRWKROGWKHUHRQHVKRXOGQRWUHVRUW

WRH[WHUQDOPHDQVWRHUDGLFDWHLWEXWVKRXOGTXLHWO\OHWQDWXUHWDNHLWVFRXUVH

7KHQLPSURYHPHQWZLOOFRPHRILWVHOI

1LQHDWWKHWRSPHDQV

,QQRFHQWDFWLRQEULQJVPLVIRUWXQH

1RWKLQJIXUWKHUV

:KHQLQDJLYHQVLWXDWLRQWKHWLPHLVQRWULSHIRUIXUWKHUSURJUHVVWKHEHVW

WKLQJWRGRLVWRZDLWTXLHWO\ZLWKRXWXOWHULRUGHVLJQV,IRQHDFWV

WKRXJKWOHVVO\DQGWULHVWRSXVKDKHDGLQRSSRVLWLRQWRIDWHVXFFHVVZLOOQRWEH

background image

DFKLHYHG

LQGH[

7D&KX7KH7DPLQJ3RZHURIWKH*UHDW

DERYH.r1.((3,1*67,//02817$,1

EHORZ&+,(17+(&5($7,9(+($9(1

7KH&UHDWLYHLVWDPHGE\.rQ.HHSLQJ6WLOO7KLVSURGXFHVJUHDWSRZHUD

VLWXDWLRQLQFRQWUDVWWRWKDWRIWKHQLQWKKH[DJUDP+VLDR&KX7+(

7$0,1*32:(52)7+(60$//LQZKLFKWKH&UHDWLYHLVWDPHGE\WKH

*HQWOHDORQH7KHUHRQHZHDNOLQHPXVWWDPHILYHVWURQJOLQHVEXWKHUHIRXU

VWURQJOLQHVDUHUHVWUDLQHGE\WZRZHDNOLQHVLQDGGLWLRQWRDPLQLVWHUWKHUH

LVDSULQFHDQGWKHUHVWUDLQLQJSRZHUWKHUHIRUHLVDIDUVWURQJHU

7KHKH[DJUDPKDVDWKUHHIROGPHDQLQJH[SUHVVLQJGLIIHUHQWDVSHFWVRIWKH

FRQFHSW+ROGLQJILUP+HDYHQZLWKLQWKHPRXQWDLQJLYHVWKHLGHDRI

KROGLQJILUPLQWKHVHQVHRIKROGLQJWRJHWKHUWKHWULJUDP.rQZKLFKKROGV

WKHWULJUDPFKLHQVWLOOJLYHVWKHLGHDRIKROGLQJILUPLQWKHVHQVHRIKROGLQJ

EDFNWKHWKLUGLGHDLVWKDWRIKROGLQJILUPLQWKHVHQVHRIFDULQJIRUDQG

QRXULVKLQJ7KLVODVWLVVXJJHVWHGE\WKHIDFWWKDWDVWURQJOLQHDWWKHWRS

ZKLFKLVWKHUXOHURIWKHKH[DJUDPLVKRQRUHGDQGWHQGHGDVDVDJH7KHWKLUG

RIWKHVHPHDQLQJVDOVRDWWDFKHVVSHFLILFDOO\WRWKLVVWURQJOLQHDWWKHWRS

ZKLFKUHSUHVHQWVWKHVDJH

7+(-8'*0(17

7+(7$0,1*32:(52)7+(*5($7

3HUVHYHUDQFHIXUWKHUV

1RWHDWLQJDWKRPHEULQJVJRRGIRUWXQH

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

7RKROGILUPO\WRJUHDWFUHDWLYHSRZHUVDQGVWRUHWKHPXSDVVHWIRUWKLQWKLV

KH[DJUDPWKHUHLVQHHGRIDVWURQJFOHDUKHDGHGPDQZKRLVKRQRUHGE\WKH

UXOHU7KHWULJUDP&KHLQSRLQWVWRVWURQJFUHDWLYHSRZHU.rQLQGLFDWHV

ILUPQHVVDQGWUXWK%RWKSRLQWWROLJKWDQGFODULW\DQGWRWKHGDLO\UHQHZDORI

FKDUDFWHU2QO\WKURXJKVXFKGDLO\VHOIUHQHZDOFDQDPDQFRQWLQXHDWWKH

KHLJKWRIKLVSRZHUV)RUFHRIKDELWKHOSVWRNHHSRUGHULQTXLHWWLPHVEXWLQ

SHULRGVZKHQWKHUHLVDJUHDWVWRULQJXSRIHQHUJ\HYHU\WKLQJGHSHQGVRQWKH

SRZHURIWKHSHUVRQDOLW\+RZHYHUVLQFHWKHZRUWK\DUHKRQRUHGDVLQWKH

FDVHRIWKHVWURQJSHUVRQDOLW\HQWUXVWHGZLWKOHDGHUVKLSE\WKHUXOHULWLVDQ

DGYDQWDJHQRWWRHDWDWKRPHEXWUDWKHUWRHDUQRQHVEUHDGE\HQWHULQJXSRQ

SXEOLFRIILFH6XFKDPDQLVLQKDUPRQ\ZLWKKHDYHQWKHUHIRUHHYHQJUHDW

DQGGLIILFXOWXQGHUWDNLQJVVXFKDVFURVVLQJWKHJUHDWZDWHUVXFFHHG

7+(,0$*(

background image

+HDYHQZLWKLQWKHPRXQWDLQ

7KHLPDJHRI7+(7$0,1*32:(52)7+(*5($7

7KXVWKHVXSHULRUPDQDFTXDLQWVKLPVHOIZLWKPDQ\VD\LQJVRIDQWLTXLW\

$QGPDQ\GHHGVRIWKHSDVW

,QRUGHUWRVWUHQJWKHQKLVFKDUDFWHUWKHUHE\

+HDYHQZLWKLQWKHPRXQWDLQSRLQWVWRKLGGHQWUHDVXUHV,QWKHZRUGVDQG

GHHGVRIWKHSDVWWKHUHOLHVKLGGHQDWUHDVXUHWKDWPHQPD\XVHWRVWUHQJWKHQ

DQGHOHYDWHWKHLURZQFKDUDFWHUV7KHZD\WRVWXG\WKHSDVWLVQRWWRFRQILQH

RQHVHOIWRPHUHNQRZOHGJHRIKLVWRU\EXWWKURXJKDSSOLFDWLRQRIWKLV

NQRZOHGJHWRJLYHDFWXDOLW\WRWKHSDVW

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

'DQJHULVDWKDQG,WIXUWKHUVRQHWRGHVLVW

$PDQZLVKHVWRPDNHYLJRURXVDGYDQFHEXWFLUFXPVWDQFHVSUHVHQWDQ

REVWDFOH+HVHHVKLPVHOIKHOGEDFNILUPO\,IKHVKRXOGDWWHPSWWRIRUHDQ

DGYDQFHLWZRXOGOHDGKLPLQWRPLVIRUWXQH7KHUHIRUHLWLVEHWWHUIRUKLPWR

FRPSRVHKLPVHOIDQGWRZDLWXQWLODQRXWOHWLVRIIHUHGIRUUHOHDVHRIKLV

VWRUHGXSHQHUJLHV

1LQHLQWKHVHFRQGSODFHPHDQV

7KHD[OHWUHHVDUHWDNHQIURPWKHZDJRQ

+HUHDGYDQFHLVFKHFNHGMXVWDVLQWKHWKLUGOLQHRI7+(7$0,1*32:(52)

7+(60$//+RZHYHULQWKHODWHUWKHUHVWUDLQLQJIRUFHLVVOLJKWWKXVD

FRQIOLFWDULVHVEHWZHHQWKHSURSXOVLYHDQGWKHUHVWUDLQLQJPRYHPHQWDVD

UHVXOWRIZKLFKWKHVSRNHVIDOORXWRIWKHZDJRQZKHHOVZKLOHKHUHWKH

UHVWUDLQLQJIRUFHLVDEVROXWHO\VXSHULRUKHQFHQRVWUXJJOHWDNHVSODFH2QH

VXEPLWVDQGUHPRYHVWKHD[OHWUHHVIURPWKHZDJRQLQRWKHUZRUGVFRQWHQWV

KLPVHOIZLWKZDLWLQJ,QWKLVZD\HQHUJ\DFFXPXODWHVIRUDYLJRURXVDGYDQFH

ODWHURQ

1LQHLQWKHWKLUGSODFHPHDQV

$JRRGKRUVHWKDWIROORZVRWKHUV

$ZDUHQHVVRIGDQJHU

:LWKSHUVHYHUDQFHIXUWKHUV

3UDFWLFHFKDULRWGULYLQJDQGDUPHGGHIHQVHGDLO\

,WIXUWKHUVRQHWRKDYHVRPHZKHUHWRJR

7KHZD\RSHQVWKHKLQGUDQFHKDVEHHQFOHDUHGDZD\$PDQLVLQFRQWDFW

ZLWKDVWURQJZLOODFWLQJLQWKHVDPHGLUHFWLRQDVKLVRZQDQGJRHVIRUZDUG

OLNHRQHJRRGKRUVHIROORZLQJDQRWKHU%XWGDQJHUVWLOOWKUHDWHQVDQGKH

PXVWUHPDLQDZDUHRILWRUKHZLOOEHUREEHGRIKLVILUPQHVV7KXVKHPXVW

DFTXLUHVNLOORQWKHRQHKDQGLQZKDWZLOOWDNHKLPIRUZDUGDQGRQWKHRWKHU

LQZKDWZLOOSURWHFWKLPDJDLQVWXQIRUHVHHQDWWDFNV,WLVJRRGLQVXFKDSDVV

background image

WRKDYHDJRDOWRZDUGZKLFKWRVWULYH

6L[LQWKHIRXUWKSODFHPHDQV

7KHKHDGERDUGRID\RXQJEXOO

*UHDWJRRGIRUWXQH

7KLVOLQHDQGWKHRQHIROORZLQJLWDUHWKHWZRWKDWWDPHWKHIRUZDUGSXVKLQJ

ORZHUOLQHV%HIRUHDEXOOVKRUQVJURZRXWDKHDGERDUGLVIDVWHQHGWRLWV

IRUHKHDGVRWKDWODWHUZKHQWKHKRUQVDSSHDUWKH\FDQQRWGRKDUP$JRRG

ZD\WRUHVWUDLQZLOGIRUFHLVWRIRUHVWDOOLW%\VRGRLQJRQHDFKLHYHVDQHDV\

DQGJUHDWVXFFHVV

ƒ6L[LQWKHILIWKSODFHPHDQV

7KHWXVNRIDJHOGHGERDU

*RRGIRUWXQH

+HUHWKHUHVWUDLQLQJRIWKHLPSHWXRXVIRUZDUGGULYHLVDFKLHYHGLQDQ

LQGLUHFWZD\$ERDUVWXVNLVLQLWVHOIGDQJHURXVEXWLIWKHERDUVQDWXUHLV

DOWHUHGWKHWXVNLVQRORQJHUDPHQDFH7KXVDOVRZKHUHPHQDUHFRQFHUQHG

ZLOGIRUFHVKRXOGQRWEHFRPEDWHGGLUHFWO\LQVWHDGLWVURRWVVKRXOGEH

HUDGLFDWHG

ƒ1LQHDWWKHWRSPHDQV

2QHDWWDLQVWKHZD\RIKHDYHQ

6XFFHVV

7KHWLPHRIREVWUXFWLRQLVSDVW7KHHQHUJ\ORQJGDPPHGXSE\LQKLELWLRQ

IRUFHVLWVZD\RXWDQGDFKLHYHVJUHDWVXFFHVV7KLVUHIHUVWRDPDQZKRLV

KRQRUHGE\WKHUXOHUDQGZKRVHSULQFLSOHVQRZSUHYDLODQGVKDSHWKHZRUOG

LQGH[

,&RUQHUVRIWKH0RXWK3URYLGLQJ1RXULVKPHQW

DERYH.r1.((3,1*67,//02817$,1

EHORZ&+r17+($5286,1*7+81'(5

7KLVKH[DJUDPLVDSLFWXUHRIDQRSHQPRXWKDERYHDQGEHORZDUHILUPOLQHV

RIWKHOLSVDQGEHWZHHQWKHPWKHRSHQLQJ6WDUWLQJZLWKWKHPRXWKWKURXJK

ZKLFKZHWDNHIRRGIRUQRXULVKPHQWWKHWKRXJKWOHDGVWRQRXULVKPHQW

LWVHOI1RXULVKPHQWRIRQHVHOIVSHFLILFDOO\RIWKHERG\LVUHSUHVHQWHGLQWKH

WKUHHORZHUOLQHVZKLOHWKHWKUHHXSSHUOLQHVUHSUHVHQWQRXULVKPHQWDQG

FDUHRIRWKHUVLQDKLJKHUVSLULWXDOVHQVH

7+(-8'*0(17

background image

7+(&251(562)7+(0287+

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

3D\KHHGWRWKHSURYLGLQJRIQRXULVKPHQW

$QGWRZKDWDPDQVHHNV

7RILOOKLVRZQPRXWKZLWK

,QEHVWRZLQJFDUHDQGQRXULVKPHQWLWLVLPSRUWDQWWKDWWKHULJKWSHRSOH

VKRXOGEHWDNHQFDUHRIDQGWKDWZHVKRXOGDWWHQGWRRXURZQQRXULVKPHQW

LQWKHULJKWZD\,IZHZLVKWRNQRZZKDWDQ\RQHLVOLNHZHKDYHRQO\WR

REVHUYHRQZKRPKHEHVWRZVKLVFDUHDQGZKDWVLGHVRIKLVRZQQDWXUHKH

FXOWLYDWHVDQGQRXULVKHV1DWXUHQRXULVKHVDOOFUHDWXUHV7KHJUHDWPDQ

IRVWHUVDQGWDNHVFDUHRIVXSHULRUPHQLQRUGHUWRWDNHFDUHRIDOOPHQ

WKURXJKWKHP0HQFLXVVD\VDERXWWKLV

,IZHZLVKWRNQRZZKHWKHUDQ\RQHLVVXSHULRURUQRWZHQHHGRQO\REVHUYH

ZKDWSDUWRIKLVEHLQJKHUHJDUGVDVHVSHFLDOO\LPSRUWDQW7KHERG\KDV

VXSHULRUDQGLQIHULRULPSRUWDQWDQGXQLPSRUWDQWSDUWV:HPXVWQRWLQMXUH

LPSRUWDQWSDUWVIRUWKHVDNHRIWKHXQLPSRUWDQWQRUPXVWZHLQMXUHWKH

VXSHULRUSDUWVIRUWKHVDNHRIWKHLQIHULRU+HZKRFXOWLYDWHVWKHLQIHULRUSDUWV

RIKLVQDWXUHLVDQLQIHULRUPDQ+HZKRFXOWLYDWHVWKHVXSHULRUSDUWVRIKLV

QDWXUHLVDVXSHULRUPDQ

7+(,0$*(

$WWKHIRRWRIWKHPRXQWDLQWKXQGHU

7KHLPDJHRI3529,',1*1285,6+0(17

7KXVWKHVXSHULRUPDQLVFDUHIXORIKLVZRUGV

$QGWHPSHUDWHLQHDWLQJDQGGULQNLQJ

*RGFRPHVIRUWKLQWKHVLJQRIWKH$URXVLQJZKHQLQWKHVSULQJWKHOLIH

IRUFHVVWLUDJDLQDOOWKLQJVFRPHVLQWREHLQJDQHZ+HEULQJVWRSHUIHFWLRQLQ

WKHVLJQRI.HHSLQJ6WLOOWKXVLQWKHHDUO\VSULQJZKHQWKHVHHGVIDOOWR

HDUWKDOOWKLQJVDUHPDGHUHDG\7KLVLVDQLPDJHRISURYLGLQJQRXULVKPHQW

WKURXJKPRYHPHQWDQGWUDQTXLOOLW\7KHVXSHULRUPDQWDNHVLWDVDSDWWHUQ

IRUWKHQRXULVKPHQWDQGFXOWLYDWLRQRIKLVFKDUDFWHU:RUGVDUHDPRYHPHQW

JRLQJIRUPZLWKLQRXWZDUG(DWLQJDQGGULQNLQJDUHPRYHPHQWVIURP

ZLWKRXWLQZDUG%RWKNLQGVRIPRYHPHQWFDQEHPRGLILHGE\WUDQTXLOOLW\

)RUWUDQTXLOOLW\NHHSVWKHZRUGVWKDWFRPHRXWRIWKHPRXWKIURPH[FHHGLQJ

SURSHUPHDVXUHDQGNHHSVWKHIRRGWKDWJRHVLQWRWKHPRXWKIURPH[FHHGLQJ

LWVSURSHUPHDVXUH7KXVFKDUDFWHULVFXOWLYDWHG

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

<RXOHW\RXUPDJLFWRUWRLVHJR

$QGORRNDWPHZLWKWKHFRUQHUVRI\RXUPRXWKGURRSLQJ

0LVIRUWXQH

background image

7KHPDJLFWRUWRLVHLVDFUHDWXUHSRVVHVVHGRIVXFKVXSHUQDWXUDOSRZHUVWKDWLW

OLYHVRQDLUDQGQHHGVQRHDUWKO\QRXULVKPHQW7KHLPDJHPHDQVWKDWDPDQ

ILWWHGE\QDWXUHDQGSRVLWLRQWROLYHIUHHO\DQGLQGHSHQGHQWO\UHQRXQFHVWKLV

VHOIUHOLDQFHDQGLQVWHDGORRNVZLWKHQY\DQGGLVFRQWHQWDWRWKHUVZKRDUH

RXWZDUGO\LQEHWWHUFLUFXPVWDQFHV%XWVXFKEDVHHQY\RQO\DURXVHVGHULVLRQ

DQGFRQWHPSWLQWKRVHRWKHUV7KLVKDVEDGUHVXOWV

6L[LQWKHVHFRQGSODFHPHDQV

7XUQLQJWRWKHVXPPLWIRUQRXULVKPHQW

'HYLDWLQJIURPWKHSDWK

7RVHHNQRXULVKPHQWIURPWKHKLOO

&RQWLQXLQJWRGRWKLVEULQJVPLVIRUWXQH

1RUPDOO\DSHUVRQHLWKHUSURYLGHVKLVRZQPHDQVRIQRXULVKPHQWRULV

VXSSRUWHGLQDSURSHUZD\E\WKRVHZKRVHGXW\RISULYLOHJHLWLVWRSURYLGHIRU

KLP,IRZLQJWRZHDNQHVVRIVSLULWDPDQFDQQRWVXSSRUWKLPVHOIDIHHOLQJ

RIXQHDVLQHVVFRPHVRYHUKLPWKLVLVEHFDXVHLQVKLUNLQJWKHSURSHUZD\RI

REWDLQLQJDOLYLQJKHDFFHSWVVXSSRUWDVDIDYRUIURPWKRVHLQKLJKHUSODFH

7KLVLVXQZRUWK\IRUKHLVGHYLDWLQJIURPKLVWUXHQDWXUH.HSWXS

LQGHILQLWHO\WKLVFRXUVHOHDGVWRPLVIRUWXQH

6L[LQWKHWKLUGSODFHPHDQV

7XUQLQJDZD\IURPQRXULVKPHQW

3HUVHYHUDQFHEULQJVPLVIRUWXQH

'RQRWDFWWKXVIRUWHQ\HDUV

1RWKLQJVHUYHVWRIXUWKHU

+HZKRVHHNVQRXULVKPHQWWKDWGRHVQRWQRXULVKUHHOVIURPGHVLUHWR

JUDWLILFDWLRQDQGLQJUDWLILFDWLRQFUDYHVGHVLUH0DGSXUVXLWRISOHDVXUHIRUWKH

VDWLVIDFWLRQRIWKHVHQVHVQHYHUEULQJVRQHWRWKHJRDO2QHVKRXOGQHYHUWHQ

\HDUVLVDFRPSOHWHF\FOHRIWLPHIROORZWKLVSDWKIRUQRWKLQJJRRGFDQFRPH

RILW

6L[LQWKHIRXUWKSODFHPHDQV

7XUQLQJWRWKHVXPPLW

)RUSURYLVLRQRIQRXULVKPHQW

%ULQJVJRRGIRUWXQH

6S\LQJDERXWZLWKVKDUSH\HV

/LNHDWLJHUZLWKLQVDWLDEOHFUDYLQJ

1REODPH

,QFRQWUDVWWRWKHVL[LQWKHVHFRQGSODFHZKLFKUHIHUVWRDPDQEHQW

H[FOXVLYHO\RQKLVRZQDGYDQWDJHWKLVOLQHUHIHUVWRRQHRFFXS\LQJDKLJK

SRVLWLRQDQGVWULYLQJWROHWKLVOLJKWVLQHIRUWK7RGRWKLVKHQHHGVKHOSHUV

EHFDXVHKHFDQQRWDWWDLQKLVORIW\DLPDORQH:LWKWKHJUHHGRIDKXQJU\WLJHU

KHLVRQWKHORRNRXWIRUWKHULJKWSHRSOH6LQFHKHLVQRWZRUNLQJIRUKLPVHOI

EXWIRUWKHJRRGRIDOOWKHUHLVQRZURQJLQVXFK]HDO

background image

ƒ6L[LQWKHILIWKSODFHPHDQV

7XUQLQJDZD\IURPWKHSDWK

7RUHPDLQSHUVHYHULQJEULQJVJRRGIRUWXQH

2QHVKRXOGQRWFURVVWKHJUHDWZDWHU

$PDQPD\EHFRQVFLRXVRIDGHILFLHQF\LQKLPVHOI+HVKRXOGEH

XQGHUWDNLQJWKHQRXULVKPHQWRIWKHSHRSOHEXWKHKDVQRWWKHVWUHQJWKWRGR

LW7KXVKHPXVWWXUQIURPKLVDFFXVWRPHGSDWKDQGEHJFRXQVHODQGKHOS

IURPDPDQZKRLVVSLULWXDOO\KLVVXSHULRUEXWXQGLVWLQJXLVKHGRXWZDUGO\,I

KHPDLQWDLQVWKLVDWWLWXGHRIPLQGSHUVHYHULQJO\VXFFHVVDQGJRRGIRUWXQH

DUHKLV%XWKHPXVWUHPDLQDZDUHRIKLVGHSHQGHQFH+HPXVWQRWSXWKLV

RZQSHUVRQIRUZDUGQRUDWWHPSWJUHDWODERUVVXFKDVFURVVLQJWKHJUHDW

ZDWHU

ƒ1LQHDWWKHWRSPHDQV

7KHVRXUFHRIQRXULVKPHQW

$ZDUHQHVVRIGDQJHUEULQJVJRRGIRUWXQH

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

7KLVGHVFULEHVDVDJHRIWKHKLJKHVWRUGHUIURPZKRPHPDQDWHDOOLQIOXHQFHV

WKDWSURYLGHQRXULVKPHQWIRURWKHUV6XFKDSRVLWLRQEULQJVZLWKLWKHDY\

UHVSRQVLELOLW\,IKHUHPDLQVFRQVFLRXVRIWKLVIDFWKHKDVJRRGIRUWXQHDQG

PD\FRQILGHQWO\XQGHUWDNHHYHQJUHDWDQGGLIILFXOWODERUVVXFKDVFURVVLQJ

WKHJUHDWZDWHU7KHVHXQGHUWDNLQJVEULQJJHQHUDOKDSSLQHVVIRUKLPDQGIRU

DOORWKHUV

LQGH[

7D.XR3UHSRQGHUDQFHRIWKH*UHDW

DERYH78,7+(-2<286/$.(

EHORZ6817+(*(17/(:,1':22'

7KLVKH[DJUDPFRQVLVWVRIIRXUVWURQJOLQHVLQVLGHDQGWZRZHDNOLQHVRXWVLGH

:KHQWKHVWURQJDUHRXWVLGHDQGWKHZHDNLQVLGHDOOLVZHOODQGWKHUHLV

QRWKLQJRXWRIEDODQFHQRWKLQJH[WUDRUGLQDU\LQWKHVLWXDWLRQ+HUH

KRZHYHUWKHRSSRVLWHLVWKHFDVH7KHKH[DJUDPUHSUHVHQWVDEHDPWKDWLV

WKLFNDQGKHDY\LQWKHPLGGOHEXWWRRZHDNDWWKHHQGV7KLVLVDFRQGLWLRQ

WKDWFDQQRWODVWLWPXVWEHFKDQJHGPXVWSDVVRUPLVIRUWXQHZLOOUHVXOW

7+(-8'*0(17

35(321'(5$1&(2)7+(*5($7

7KHULGJHSROHVDJVWRWKHEUHDNLQJSRLQW

,WIXUWKHUVRQHWRKDYHVRPHZKHUHWRJR

6XFFHVV

background image

7KHZHLJKWRIWKHJUHDWLVH[FHVVLYH7KHORDGLVWRRKHDY\IRUWKHVWUHQJWKRI

WKHVXSSRUWV7KHULGJHSROHRQZKLFKWKHZKROHURRIUHVWVVDJVWRWKH

EUHDNLQJSRLQWEHFDXVHLWVVXSSRUWLQJHQGVDUHWRRZHDNIRUWKHORDGWKH\

EHDU,WLVDQH[FHSWLRQDOWLPHDQGVLWXDWLRQWKHUHIRUHH[WUDRUGLQDU\

PHDVXUHV

DUHGHPDQGHG,WLVQHFHVVDU\WRILQGDZD\RIWUDQVLWLRQDVTXLFNO\DV

SRVVLEOH

DQGWRWDNHDFWLRQ7KLVSURPLVHVVXFFHVV)RUDOWKRXJKWKHVWURQJHOHPHQWLV

LQH[FHVVLWLVLQWKHPLGGOHWKDWLVDWWKHFHQWHURIJUDYLW\VRWKDWD

UHYROXWLRQLVQRWWREHIHDUHG1RWKLQJLVWREHDFKLHYHGE\IRUFLEOHPHDVXUHV

7KHSUREOHPPXVWEHVROYHGE\JHQWO\SHQHWUDWLRQWRWKHPHDQLQJRIWKH

VLWXDWLRQDVLVVXJJHVWHGE\WKHDWWULEXWHRIWKHLQQHUWULJUDP6XQWKHQWKH

FKDQJHRYHUWRRWKHUFRQGLWLRQVZLOOEHVXFFHVVIXO,WGHPDQGVUHDO

VXSHULRULW\WKHUHIRUHWKHWLPHZKHQWKHJUHDWSUHSRQGHUDWHVLVDPRPHQWRXV

WLPH

7+(,0$*(

7KHODNHULVHVDERYHWKHWUHHV

7KHLPDJHRI35(321'(5$1&(2)7+(*5($7

7KXVWKHVXSHULRUPDQZKHQKHVWDQGVDORQH

,VXQFRQFHUQHG

$QGLIKHKDVWRUHQRXQFHWKHZRUOG

+HLVXQGDXQWHG

([WUDRUGLQDU\WLPHVZKHQWKHJUHDWSUHSRQGHUDWHVDUHOLNHIORRGWLPHVZKHQ

WKHODNHULVHVRYHUWKHWUHHWRSV%XWVXFKFRQGLWLRQVDUHWHPSRUDU\7KHWZR

WULJUDPVLQGLFDWHWKHDWWLWXGHSURSHUWRVXFKH[FHSWLRQDOWLPHVWKHV\PERORI

WKHWULJUDP6XQLVWKHWUHHZKLFKVWDQGVILUPHYHQWKRXJKLWVWDQGVDORQH

DQGWKHDWWULEXWHRI7XLLVMR\RXVQHVVZKLFKUHPDLQVXQGDXQWHGHYHQLILW

PXVWUHQRXQFHWKHZRUOG

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

7RVSUHDGZKLWHUXVKHVXQGHUQHDWK

1REODPH

:KHQDPDQZLVKHVWRXQGHUWDNHDQHQWHUSULVHLQH[WUDRUGLQDU\WLPHVKH

PXVWEHH[WUDRUGLQDULO\FDXWLRXVMXVWDVZKHQVHWWLQJDKHDY\WKLQJGRZQRQ

WKHIORRURQHWDNHVFDUHWRSXWUXVKHVXQGHULWVRWKDWQRWKLQJZLOOEUHDN

7KLVFDXWLRQWKRXJKLWPD\VHHPH[DJJHUDWHGLVQRWDPLVWDNH([FHSWLRQDO

HQWHUSULVHVFDQQRWVXFFHHGXQOHVVXWPRVWFDXWLRQLVREVHUYHGLQWKHLU

EHJLQQLQJVDQGLQWKHOD\LQJRIWKHLUIRXQGDWLRQV

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

$GU\SRSODUVSURXWVDWWKHURRW

background image

$QROGHUPDQWDNHVD\RXQJZLIH

(YHU\WKLQJIXUWKHUV

:RRGLVQHDUZDWHUKHQFHWKHLPDJHRIDQROGSRSODUVSURXWLQJDWWKHURRW

7KLVPHDQVDQH[WUDRUGLQDU\VLWXDWLRQDULVHVZKHQDQROGHUPDQPDUULHVD

\RXQJJLUOZKRVXLWVKLP'HVSLWHWKHXQXVXDOQHVVRIWKHVLWXDWLRQDOOJRHV

ZHOO

)URPWKHSRLQWRIYLHZRISROLWLFVWKHPHDQLQJLVWKDWLQH[FHSWLRQDOWLPHV

RQHGRHVZHOOWRMRLQZLWKWKHORZO\IRUWKLVDIIRUGVDSRVVLELOLW\RIUHQHZDO

1LQHLQWKHWKLUGSODFHPHDQV

7KHULGJHSROHVDJVWRWKHEUHDNLQJSRLQW

0LVIRUWXQH

7KLVLQGLFDWHVDW\SHRIPDQZKRLQWLPHVRISUHSRQGHUDQFHRIWKHJUHDW

LQVLVWVRQSXVKLQJDKHDG+HDFFHSWVQRDGYLFHIURPRWKHUVDQGWKHUHIRUH

WKH\LQWXUQDUHQRWZLOOLQJWROHQGKLPVXSSRUW%HFDXVHRIWKLVWKHEXUGHQ

JURZVXQWLOWKHVWUXFWXUHRIWKLQJVEHQGVRUEUHDNV3OXQJLQJZLOOIXOO\DKHDG

LQWLPHVRIGDQJHURQO\KDVWHQVWKHFDWDVWURSKH

ƒ1LQHLQWKHIRXUWKSODFHPHDQV

7KHULGJHSROHLVEUDFHG*RRGIRUWXQH

,IWKHUHDUHXOWHULRUPRWLYHVLWLVKXPLOLDWLQJ

7KURXJKIULHQGO\UHODWLRQVZLWKSHRSOHRIORZHUUDQNDUHVSRQVLEOHPDQ

VXFFHHGVLQEHFRPLQJPDVWHURIWKHVLWXDWLRQ%XWLILQVWHDGRIZRUNLQJIRU

WKHUHVFXHRIWKHZKROHKHZHUHWRPLVXVHKLVFRQQHFWLRQVWRREWDLQSHUVRQDO

SRZHUDQGVXFFHVVLWZRXOGOHDGWRKXPLOLDWLRQ

1LQHLQWKHILIWKSODFHPHDQV

$ZLWKHUHGSRSODUSXWVIRUWKIORZHUV

$QROGHUZRPDQWDNHVDKXVEDQG

1REODPH1RSUDLVH

$ZLWKHUHGSRSODUWKDWIORZHUVH[KDXVWVLWVHQHUJLHVWKHUHE\DQGRQO\KDVWHQV

LWVHQG$QROGHUZRPDQPD\PDUU\RQFHPRUHEXWQRUHQHZDOWDNHVSODFH

(YHU\WKLQJUHPDLQVEDUUHQ7KXVWKRXJKDOOWKHDPHQLWLHVDUHREVHUYHGWKH

QHWUHVXOWLVRQO\WKHDQRPDO\RIWKHVLWXDWLRQ

$SSOLHGWRSROLWLFVWKHPHWDSKRUPHDQVWKDWLILQWLPHVRILQVHFXULW\ZH

JLYHXSDOOLDQFHZLWKWKRVHEHORZXVDQGNHHSXSRQO\WKHUHODWLRQVKLSVZH

KDYHZLWKSHRSOHRIKLJKHUUDQNDQXQVWDEOHVLWXDWLRQLVFUHDWHG

6L[DWWKHWRSPHDQV

2QHPXVWJRWKURXJKWKHZDWHU

,WJRHVRYHURQHVKHDG

0LVIRUWXQH1REODPH

+HUHLVDVLWXDWLRQLQZKLFKWKHXQXVXDOKDVUHDFKHGDFOLPD[2QHLV

background image

FRXUDJHRXVDQGZLVKHVWRDFFRPSOLVKRQHVWDVNQRPDWWHUZKDWKDSSHQV

7KLVOHDGVLQWRGDQJHU7KHZDWHUULVHVRYHURQHVKHDG7KLVLVWKH

PLVIRUWXQH%XWRQHLQFXUVQREODPHLQJLYLQJXSRQHVOLIHWKDWWKHJRRG

DQGWKHULJKWPD\SUHYDLO7KHUHDUHWKLQJVWKDWDUHPRUHLPSRUWDQWWKDQ

OLIH

LQGH[

.DQ7KH$E\VPDO:DWHU

DERYH.$17+($%<60$/:$7(5

EHORZ.$17+($%<60$/:$7(5

7KLVKH[DJUDPFRQVLVWVRIDGRXEOLQJRIWKHWULJUDP.DQ,WLVRQHRIWKH

HLJKWKH[DJUDPVLQZKLFKGRXEOLQJRFFXUV7KHWULJUDP.DQPHDQVD

SOXQJLQJLQ$\DQJOLQHKDVSOXQJHGLQEHWZHHQWZR\LQOLQHVDQGLVFORVHG

LQE\WKHPOLNHZDWHULQDUDYLQH7KHWULJUDP.DQLVDOVRWKHPLGGOHVRQ

7KH5HFHSWLYHKDVREWDLQHGWKHPLGGOHOLQHRIWKH&UHDWLYHDQGWKXV.DQ

GHYHORSV$VDQLPDJHLWUHSUHVHQWVZDWHUWKHZDWHUWKDWFRPHVIURPDERYH

DQGLVLQPRWLRQRQHDUWKLQVWUHDPVDQGULYHUVJLYLQJULVHWRDOOOLIHRQ

HDUWK

,QPDQVZRUOG.DQUHSUHVHQWVWKHKHDUWWKHVRXOORFNHGXSZLWKLQWKH

ERG\WKHSULQFLSOHRIOLJKWLQFORVHGLQWKHGDUNWKDWLVUHDVRQ7KHQDPHRI

WKHKH[DJUDPEHFDXVHWKHWULJUDPLVGRXEOHGKDVWKHDGGLWLRQDOPHDQLQJ

UHSHWLWLRQRIGDQJHU7KXVWKHKH[DJUDPLVLQWHQGHGWRGHVLJQDWHDQ

REMHFWLYHVLWXDWLRQWRZKLFKRQHPXVWEHFRPHDFFXVWRPHGQRWDVXEMHFWLYH

DWWLWXGH)RUGDQJHUGXHWRDVXEMHFWLYHDWWLWXGHPHDQVHLWKHUIRROKDUGLQHVV

RUJXLOH+HQFHWRRDUDYLQHLVXVHGWRV\PEROL]HGDQJHULWLVDVLWXDWLRQLQ

ZKLFKDPDQLVLQWKHVDPHSDVVDVWKHZDWHULQDUDYLQHDQGOLNHWKHZDWHU

KHFDQHVFDSHLIKHEHKDYHVFRUUHFWO\

7+(-8'*0(17

7KH$E\VPDOUHSHDWHG

,I\RXDUHVLQFHUH\RXKDYHVXFFHVVLQ\RXUKHDUW

$QGZKDWHYHU\RXGRVXFFHHGV

7KURXJKUHSHWLWLRQRIGDQJHUZHJURZDFFXVWRPHGWRLW:DWHUVHWVWKH

H[DPSOHIRUWKHULJKWFRQGXFWXQGHUVXFKFLUFXPVWDQFHV,WIORZVRQDQGRQ

DQGPHUHO\ILOOVXSDOOWKHSODFHVWKURXJKZKLFKLWIORZVLWGRHVQRWVKULQN

IURPDQ\GDQJHURXVVSRWQRUIURPDQ\SOXQJHDQGQRWKLQJFDQPDNHLWORVH

LWVRZQHVVHQWLDOQDWXUH,WUHPDLQVWUXHWRLWVHOIXQGHUDOOFRQGLWLRQV7KXV

OLNHZLVHLIRQHLVVLQFHUHZKHQFRQIURQWHGZLWKGLIILFXOWLHVWKHKHDUWFDQ

SHQHWUDWHWKHPHDQLQJRIWKHVLWXDWLRQ$QGRQFHZHKDYHJDLQHGLQQHU

PDVWHU\RIDSUREOHPLWZLOOFRPHDERXWQDWXUDOO\WKDWWKHDFWLRQZHWDNHZLOO

VXFFHHG,QGDQJHUDOOWKDWFRXQWVLVUHDOO\FDUU\LQJRXWDOOWKDWKDVWREH

GRQH

background image

WKRURXJKQHVVDQGJRLQJIRUZDUGLQRUGHUQRWWRSHULVKWKURXJKWDUU\LQJLQ

WKHGDQJHU

3URSHUO\XVHGGDQJHUFDQKDYHDQLPSRUWDQWPHDQLQJDVDSURWHFWLYH

PHDVXUH7KXVKHDYHQKDVLWVSHULORXVKHLJKWSURWHFWLQJLWDJDLQVWHYHU\

DWWHPSWDWLQYDVLRQDQGHDUWKKDVLWVPRXQWDLQVDQGERGLHVRIZDWHU

VHSDUDWLQJFRXQWULHVE\WKHLUGDQJHUV7KXVDOVRUXOHUVPDNHXVHRIGDQJHUWR

SURWHFWWKHPVHOYHVDJDLQVWDWWDFNVIURPZLWKRXWDQGDJDLQVWWXUPRLOZLWKLQ

7+(,0$*(

:DWHUIORZVRQXQLQWHUUXSWHGO\DQGUHDFKHVLWVIRDO

7KHLPDJHRIWKH$E\VPDOUHSHDWHG

7KXVWKHVXSHULRUPDQZDONVLQODVWLQJYLUWXH

$QGFDUULHVRQWKHEXVLQHVVRIWHDFKLQJ

:DWHUUHDFKHVLWVJRDOE\IORZLQJFRQWLQXDOO\,WILOOVXSHYHU\GHSUHVVLRQ

EHIRUHLWIORZVRQ7KHVXSHULRUPDQIROORZVLWVH[DPSOHKHLVFRQFHUQHG

WKDWJRRGQHVVVKRXOGEHDQHVWDEOLVKHGDWWULEXWHRIFKDUDFWHUUDWKHUWKDQDQ

DFFLGHQWDODQGLVRODWHGRFFXUUHQFH6ROLNHZLVHLQWHDFKLQJRWKHUVHYHU\WKLQJ

GHSHQGVRQFRQVLVWHQF\IRULWLVRQO\WKURXJKUHSHWLWLRQWKDWWKHSXSLOPDNHV

WKHPDWHULDOKLVRZQ

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

5HSHWLWLRQRIWKH$E\VPDO

,QWKHDE\VVRQHIDOOVLQWRDSLW

0LVIRUWXQH

%\JURZLQJXVHGWRZKDWLVGDQJHURXVDPDQFDQHDVLO\DOORZLWWREHFRPH

SDUWRIKLP+HLVIDPLOLDUZLWKLWDQGJURZVXVHGWRHYLO:LWKWKLVKHKDV

ORVWWKHULJKWZD\DQGPLVIRUWXQHLVWKHQDWXUDOUHVXOW

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

7KHDE\VVLVGDQJHURXV

2QHVKRXOGVWULYHWRDWWDLQVPDOOWKLQJVRQO\

:KHQZHDUHLQGDQJHUZHRXJKWQRWWRDWWHPSWWRJHWRXWRILWLPPHGLDWHO\

UHJDUGOHVVRIFLUFXPVWDQFHVDWILUVWZHPXVWFRQWHQWRXUVHOYHVZLWKQRWEHLQJ

RYHUFRPHE\LW:HPXVWFDOPO\ZHLJKWKHFRQGLWLRQVRIWKHWLPHDQGE\

VDWLVILHGZLWKVPDOOJDLQVEHFDXVHIRUWKHWLPHEHLQJDJUHDWVXFFHVVFDQQRW

EH

DWWDLQHG$VSULQJIORZVRQO\VSDULQJO\DWILUVWDQGWDUULHVIRUVRPHWLPH

EHIRUHLWPDNHVLWVZD\LQWRWKHRSHQ

6L[LQWKHWKLUGSODFHPHDQV

)RUZDUGDQGEDFNZDUGDE\VVRQDE\VV

,QGDQJHUOLNHWKLVSDXVHDWILUVWDQGZDLW

background image

2WKHUZLVH\RXZLOOIDOOLQWRDSLWLQWKHDE\VV

'RQRWDFWWKLVZD\

+HUHHYHU\VWHSIRUZDUGRUEDFNZDUGOHDGVLQWRGDQJHU(VFDSHLVRXWRIWKH

TXHVWLRQ7KHUHIRUHZHPXVWQRWEHPLVOHGLQWRDFWLRQDVDUHVXOWRIZKLFK

ZHVKRXOGRQO\ERJGRZQGHHSHULQWKHGDQJHUGLVDJUHHDEOHDVLWPD\EHWR

UHPDLQLQVXFKDVLWXDWLRQZHPXVWZDLWXQWLODZD\RXWVKRZVLWVHOI

6L[LQWKHIRXUWKSODFHPHDQV

$MXJRIZLQHDERZORIULFHZLWKLW

(DUWKHQYHVVHOV

6LPSO\KDQGHGLQWKURXJKWKH:LQGRZ

7KHUHLVFHUWDLQO\QREODPHLQWKLV

,QWLPHVRIGDQJHUFHUHPRQLRXVIRUPVDUHGURSSHG:KDWPDWWHUVPRVWLV

VLQFHULW\$OWKRXJKDVDUXOHLWLVFXVWRPDU\IRUDQRIILFLDOWRSUHVHQWFHUWDLQ

LQWURGXFWRU\JLIWVDQGUHFRPPHQGDWLRQVEHIRUHKHLVDSSRLQWHGKHUH

HYHU\WKLQJLVVLPSOLILHGWRWKHXWPRVW7KHJLIWVDUHLQVLJQLILFDQWWKHUHLVQR

RQHWRVSRQVRUKLPKHLQWURGXFHVKLPVHOI\HWDOOWKLVQHHGQRWEH

KXPLOLDWLQJLIRQO\WKHUHLVWKHKRQHVWLQWHQWLRQRIPXWXDOKHOSLQGDQJHU

6WLOODQRWKHULGHDLVVXJJHVWHG7KHZLQGRZLVWKHSODFHWKURXJKZKLFKOLJKW

HQWHUVWKHURRP,ILQGLIILFXOWWLPHVZHZDQWWRHQOLJKWHQVRPHRQHZHPXVW

EHJLQZLWKWKDWZKLFKLVLQLWVHOIOXFLGDQGSURFHHGTXLWHVLPSO\IURPWKDW

SRLQWRQ

ƒ1LQHLQWKHILIWKSODFHPHDQV

7KHDE\VVLVQRWILOOHGWRRYHUIORZLQJ

,WLVILOOHGRQO\WRWKHULP

1REODPH

'DQJHUFRPHVEHFDXVHRQHLVWRRDPELWLRXV,QRUGHUWRIORZRXWRIDUDYLQH

ZDWHUGRHVQRWULVHKLJKHUWKDQWKHORZHVWSRLQWRIWKHULP6ROLNHZLVHD

PDQZKHQLQGDQJHUKDVRQO\WRSURFHHGDORQJWKHOLQHRIOHDVWUHVLVWDQFH

WKXVKHUHDFKHVWKHJRDO*UHDWODERUVFDQQRWEHDFFRPSOLVKHGLQVXFKWLPHV

LW

LVHQRXJKWRJHWRXWRIWKHGDQJHU

6L[DWWKHWRSPHDQV

%RXQGZLWKFRUGVDQGURSHV

6KXWLQEHWZHHQWKRUQKHGJHGSULVRQZDOOV

)RUWKUHH\HDUVRQHGRHVQRWILQGWKHZD\

0LVIRUWXQH

$PDQZKRLQWKHH[WUHPLW\RIGDQJHUKDVORVWWKHULJKWZD\DQGLV

LUUHPHGLDEO\HQWDQJOHGLQKLVVLQVKDVQRSURVSHFWRIHVFDSH+HLVOLNHD

FULPLQDOZKRVLWVVKDFNOHGEHKLQGWKRUQKHGJHGSULVRQZDOOV

LQGH[

background image

/L7KH&OLQJLQJ)LUH

DERYH/,7+(&/,1*,1*),5(

EHORZ/,7+(&/,1*,1*),5(

7KLVKH[DJUDPLVDQRWKHUGRXEOHVLJQ7KHWULJUDP/LPHDQVWRFOLQJWR

VRPHWKLQJDQGDOVREULJKWQHVV$GDUNOLQHFOLQJVWRWZROLJKWOLQHVRQH

DERYHDQGRQHEHORZWKHLPDJHRIDQHPSW\VSDFHEHWZHHQWZRVWURQJOLQHV

ZKHUHE\WKHWZRVWURQJOLQHVDUHPDGHEULJKW7KHWULJUDPUHSUHVHQWVWKH

PLGGOHGDXJKWHU7KH&UHDWLYHKDVLQFRUSRUDWHGWKHFHQWUDOOLQHRIWKH

5HFHSWLYHDQGWKXV/LGHYHORSV$VDQLPDJHLWLVILUH)LUHKDVQRGHILQLWH

IRUPEXWFOLQJVWRWKHEXUQLQJREMHFWDQGWKXVLVEULJKW$VZDWHUSRXUVGRZQ

IURPKHDYHQVRILUHIODPHVXSIURPWKHHDUWK:KLOH.DQPHDQVWKHVRXO

VKXWZLWKLQWKHERG\/LVWDQGVIRUQDWXUHLQLWVUDGLDQFH

7+(-8'*0(17

7+(&/,1*,1*3HUVHYHUDQFHIXUWKHUV

,WEULQJVVXFFHVV

&DUHRIWKHFRZEULQJVJRRGIRUWXQH

:KDWLVGDUNFOLQJVWRZKDWLVOLJKWDQGVRHQKDQFHVWKHEULJKWQHVVRIWKH

ODWWHU$OXPLQRXVWKLQJJLYLQJRXWOLJKWPXVWKDYHZLWKLQLWVHOIVRPHWKLQJ

WKDWSHUVHYHUHVRWKHUZLVHLWZLOOLQWLPHEXUQLWVHOIRXW(YHU\WKLQJWKDWJLYHV

OLJKWLVGHSHQGHQWRQVRPHWKLQJWRZKLFKLWFOLQJVLQRUGHUWKDWLWPD\

FRQWLQXHWRVKLQH

7KXVWKHVXQDQGPRRQFOLQJWRKHDYHQDQGJUDLQJUDVVDQGWUHHVFOLQJWR

WKHHDUWK6RWRRWKHWZRIROGFODULW\RIWKHGHGLFDWHGPDQFOLQJVWRZKDWLV

ULJKWDQGWKHUHE\FDQVKDSHWKHZRUOG+XPDQOLIHRQHDUWKLVFRQGLWLRQHG

DQGXQIUHHDQGZKHQPDQUHFRJQL]HVWKLVOLPLWDWLRQDQGPDNHVKLPVHOI

GHSHQGHQWXSRQWKHKDUPRQLRXVDQGEHQHILFHQWIRUFHVRIWKHFRVPRVKH

DFKLHYHVVXFFHVV7KHFRZLVWKHV\PERORIH[WUHPHGRFLOLW\%\FXOWLYDWLQJLQ

KLPVHOIDQDWWLWXGHRIFRPSOLDQFHDQGYROXQWDU\GHSHQGHQFHPDQDFTXLUHV

FODULW\ZLWKRXWVKDUSQHVVDQGILQGVKLVSODFHLQWKHZRUOG

7+(,0$*(

7KDWZKLFKLVEULJKWULVHVWZLFH

7KHLPDJHRI),5(

7KXVWKHJUHDWPDQE\SHUSHWXDWLQJWKLVEULJKWQHVV

,OOXPLQHVWKHIRXUTXDUWHUVRIWKHZRUOG

(DFKRIWKHWZRWULJUDPVUHSUHVHQWVWKHVXQLQWKHFRXUVHRIDGD\7KHWZR

WRJHWKHUUHSUHVHQWWKHUHSHDWHGPRYHPHQWRIWKHVXQWKHIXQFWLRQRIOLJKW

ZLWKUHVSHFWWRWLPH7KHJUHDWPDQFRQWLQXHVWKHZRUNRIQDWXUHLQWKH

KXPDQZRUOG7KURXJKWKHFODULW\RIKLVQDWXUHKHFDXVHVWKHOLJKWWRVSUHDG

background image

IDUWKHUDQGIDUWKHUDQGWRSHQHWUDWHWKHQDWXUHRIPDQHYHUPRUHGHHSO\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

7KHIRRWSULQWVUXQFULVVFURVV

,IRQHLVVHULRXVO\LQWHQWQREODPH

,WLVHDUO\PRUQLQJDQGZRUNEHJLQV7KHPLQGKDVEHHQFORVHGWRWKHRXWVLGH

ZRUOGLQVOHHSQRZLWVFRQQHFWLRQVZLWKWKHZRUOGEHJLQDJDLQ7KHWUDFHVRI

RQHVLPSUHVVLRQVUXQFULVVFURVV$FWLYLW\DQGKDVWHSUHYDLO,WLVLPSRUWDQW

WKHQWRSUHVHUYHLQQHUFRPSRVXUHDQGQRWWRDOORZRQHVHOIWREHVZHSWDORQJ

E\WKHEXVWOHRIOLIH,IRQHLVVHULRXVDQGFRPSRVHGKHFDQDFTXLUHWKHFODULW\

RIPLQGQHHGHGIRUFRPLQJWRWHUPVZLWKWKHLQQXPHUDEOHLPSUHVVLRQVWKDW

SRXULQ,WLVSUHFLVHO\DWWKHEHJLQQLQJWKDWVHULRXVFRQFHQWUDWLRQLV

LPSRUWDQWEHFDXVHWKHEHJLQQLQJKROGVWKHVHHGRIDOOWKDWLVWRIROORZ

ƒ6L[LQWKHVHFRQGSODFHPHDQV

<HOORZOLJKW6XSUHPHJRRGIRUWXQH

0LGGD\KDVFRPHWKHVXQVKLQHVZLWKD\HOORZOLJKW<HOORZLVWKHFRORURI

PHDVXUHDQGPHDQ<HOORZOLJKWLVWKHUHIRUHDV\PERORIWKHKLJKHVWFXOWXUH

DQGDUWZKRVHFRQVXPPDWHKDUPRQ\FRQVLVWVLQKROGLQJWRWKHPHDQ

1LQHLQWKHWKLUGSODFHPHDQV

,QWKHOLJKWRIWKHVHWWLQJVXQ

0HQHLWKHUEHDWWKHSRWDQGVLQJ

2UORXGO\EHZDLOWKHDSSURDFKRIROGDJH

0LVIRUWXQH

+HUHWKHHQGRIWKHGD\KDVFRPH7KHOLJKWRIWKHVHWWLQJVXQFDOOVWRPLQG

WKHIDFWWKDWOLIHLVWUDQVLWRU\DQGFRQGLWLRQDO&DXJKWLQWKLVH[WHUQDO

ERQGDJHPHQDUHXVXDOO\UREEHGRIWKHLULQQHUIUHHGRPDVZHOO7KHVHQVHRI

WKHWUDQVLWRULQHVVRIOLIHLPSHOVWKHPWRXQLQKLELWHGUHYHOU\LQRUGHUWRHQMR\

OLIHZKLOHLWODVWVRUHOVHWKH\\LHOGWRPHODQFKRO\DQGVSRLOWKHSUHFLRXVWLPH

E\ODPHQWLQJWKHDSSURDFKRIROGDJH%RWKDWWLWXGHVDUHZURQJ7RWKH

VXSHULRUPDQLWPDNHVQRGLIIHUHQFHZKHWKHUGHDWKFRPHVHDUO\RUODWH+H

FXOWLYDWHVKLPVHOIDZDLWVKLVDOORWWHGWLPHDQGLQWKLVZD\VHFXUHVKLVIDWH

1LQHLQWKHIRXUWKSODFHPHDQV

,WVFRPLQJLVVXGGHQ

,WIODPHVXSGLHVGRZQLVWKURZQDZD\

&ODULW\RIPLQGKDVWKHVDPHUHODWLRQWROLIHWKDWILUHKDVWRZRRG)LUHFOLQJV

WRZRRGEXWDOVRFRQVXPHVLW&ODULW\RIPLQGLVURRWHGLQOLIHEXWFDQDOVR

FRQVXPHLW(YHU\WKLQJGHSHQGVXSRQKRZWKHFODULW\IXQFWLRQV+HUHWKH

LPDJHXVHGLVWKDWRIDPHWHRURUDVWUDZILUH$PDQZKRLVH[FLWDEOHDQG

UHVWOHVVPD\ULVHTXLFNO\WRSURPLQHQFHEXWSURGXFHVQRODVWLQJHIIHFWV7KXV

background image

PDWWHUVHQGEDGO\ZKHQDPDQVSHQGVKLPVHOIWRRUDSLGO\DQGFRQVXPHV

KLPVHOIOLNHDPHWHRU

ƒ6L[LQWKHILIWKSODFHPHDQV

7HDUVLQIORRGVVLJKLQJDQGODPHQWLQJ

*RRGIRUWXQH

+HUHWKH]HQLWKRIOLIHKDVEHHQUHDFKHG:HUHWKHUHQRZDUQLQJRQHZRXOG

DWWKLVSRLQWFRQVXPHRQHVHOIOLNHDIODPH,QVWHDGXQGHUVWDQGLQJWKHYDQLW\

RIDOOWKLQJVRQHPD\SXWDVLGHERWKKRSHDQGIHDUDQGVLJKDQGODPHQWLI

RQHLVLQWHQWRQUHWDLQLQJKLVFODULW\RIPLQGJRRGIRUWXQHZLOOFRPHIURP

WKLVJULHI)RUKHUHZHDUHGHDOLQJQRWZLWKDSDVVLQJPRRGDVLQWKHQLQHLQ

WKHWKLUGSODFHEXWZLWKDUHDOFKDQJHRIKHDUW

1LQHDWWKHWRSPHDQV

7KHNLQJXVHGKLPWRPDUFKIRUWKDQGFKDVWLVH

7KHQLWLVEHVWWRNLOOWKHOHDGHUV

$QGWDNHFDSWLYHWKHIROORZHUV1REODPH

,WLVQRWWKHSXUSRVHRIFKDVWLVHPHQWWRLPSRVHSXQLVKPHQWEOLQGO\EXWWR

FUHDWHGLVFLSOLQH(YLOPXVWEHFXUHGDWLWVURRWV7RHUDGLFDWHHYLOLQSROLWLFDO

OLIHLWLVEHVWWRNLOOWKHULQJOHDGHUVDQGVSDUHWKHIROORZHUV,QHGXFDWLQJ

RQHVHOILWLVEHVWWRURRWRXWEDGKDELWVDQGWROHUDWHWKRVHWKDWDUHKDUPOHVV

)RUDVFHWLFLVPWKDWLVWRRVWULFWOLNHVHQWHQFHVRIXQGXHVHYHULW\IDLOVLQLWV

SXUSRVH

LQGH[

+VLHQ,QIOXHQFH:RRLQJ

DERYH78,7+(-2<286/$.(

EHORZ.r1.((3,1*67,//02817$,1

7KHQDPHRIWKHKH[DJUDPPHDQVXQLYHUVDOJHQHUDODQGLQDILJXUDWLYH

VHQVHWRLQIOXHQFHWRVWLPXODWH7KHXSSHUWULJUDPLV7XLWKH-R\RXVWKH

ORZHULV.rQ.HHSLQJVWLOO%\LWVSHUVLVWHQWTXLHWLQIOXHQFHWKHORZHUULJLG

WULJUDPVWLPXODWHVWKHXSSHUZHDNWULJUDPZKLFKUHVSRQGVWRWKLV

VWLPXODWLRQFKHHUIXOO\DQGMR\RXVO\.rQWKHORZHUWULJUDPLVWKH\RXQJHVW

VRQWKHXSSHU7XLLVWKH\RXQJHVWGDXJKWHU7KXVWKHXQLYHUVDOPXWXDO

DWWUDFWLRQEHWZHHQWKHVH[HVLVUHSUHVHQWHG,QFRXUWVKLSWKHPDVFXOLQH

SULQFLSOHPXVWVHL]HWKHLQLWLDWLYHDQGSODFHLWVHOIEHORZWKHIHPLQLQH

SULQFLSOH

-XVWDVWKHILUVWSDUWRIERRNEHJLQVZLWKWKHKH[DJUDPVRIKHDYHQDQG

HDUWKWKHIRXQGDWLRQVRIDOOWKDWH[LVWVWKHVHFRQGSDUWEHJLQVZLWKWKH

KH[DJUDPVRIFRXUWVKLSDQGPDUULDJHWKHIRXQGDWLRQVRIDOOVRFLDO

UHODWLRQVKLSV

background image

7+(-8'*0(17

,QIOXHQFH6XFFHVV

3HUVHYHUDQFHIXUWKHUV

7RWDNHDPDLGHQWRZLIHEULQJVJRRGIRUWXQH

7KHZHDNHOHPHQWLVDERYHWKHVWURQJEHORZKHQFHWKHLUSRZHUVDWWUDFWHDFK

RWKHUVRWKDWWKH\XQLWH7KLVEULQJVDERXWVXFFHVVIRUDOOVXFFHVVGHSHQGVRQ

WKHHIIHFWRIPXWXDODWWUDFWLRQ%\NHHSLQJVWLOOZLWKLQZKLOHH[SHULHQFLQJMR\

ZLWKRXWRQHFDQSUHYHQWWKHMR\IURPJRLQJWRH[FHVVDQGKROGLWZLWKLQ

SURSHUERXQGV7KLVLVWKHPHDQLQJRIWKHDGGHGDGPRQLWLRQ3HUVHYHUDQFH

IXUWKHUVIRULWLVSHUVHYHUDQFHWKDWPDNHVWKHGLIIHUHQFHEHWZHHQVHGXFWLRQ

DQGFRXUWVKLSLQWKHODWWHUWKHVWURQJPDQWDNHVDSRVLWLRQLQIHULRUWRWKDWRI

WKHZHDNJLUODQGVKRZVFRQVLGHUDWLRQIRUKHU7KLVDWWUDFWLRQEHWZHHQ

DIILQLWLHVLVDJHQHUDOODZRIQDWXUH+HDYHQDQGHDUWKDWWUDFWHDFKRWKHUDQG

WKXVDOOFUHDWXUHVFRPHLQWREHLQJ7KURXJKVXFKDWWUDFWLRQWKHVDJH

LQIOXHQFHVPHQVKHDUWVDQGWKXVWKHZRUOGDWWDLQVSHDFH)URPWKH

DWWUDFWLRQVWKH\H[HUWZHFDQOHDUQWKHQDWXUHRIDOOEHLQJVLQKHDYHQDQGRQ

HDUWK

7+(,0$*(

$ODNHRQWKHPRXQWDLQ

7KHLPDJHRILQIOXHQFH

7KXVWKHVXSHULRUPDQHQFRXUDJHVSHRSOHWRDSSURDFKKLP

%\KLVUHDGLQHVVWRUHFHLYHWKHP

$PRXQWDLQZLWKDODNHRQLWVVXPPLWLVVWLPXODWHGE\WKHPRLVWXUHIURP

WKHODNH,WKDVWKLVDGYDQWDJHEHFDXVHLWVVXPPLWGRHVQRWMXWRXWDVDSHDN

EXWLVVXQNHQ7KHLPDJHFRXQVHOVWKDWWKHPLQGVKRXOGEHNHSWKXPEOHDQG

IUHHVRWKDWLWPD\UHPDLQUHFHSWLYHWRJRRGDGYLFH3HRSOHVRRQJLYHXS

FRXQVHOLQJDPDQZKRWKLQNVWKDWKHNQRZVHYHU\WKLQJEHWWHUWKDQDQ\RQH

HOVH

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

7KHLQIOXHQFHVKRZVLWVHOILQWKHELJWRH

$PRYHPHQWEHIRUHLWLVDFWXDOO\FDUULHGRXWVKRZVLWVHOIILUVWLQWKHWRHV

7KHLGHDRIDQLQIOXHQFHLVDOUHDG\SUHVHQWEXWLVQRWLPPHGLDWHO\DSSDUHQWWR

RWKHUV$VORQJDVWKHLQWHQWLRQKDVQRYLVLEOHHIIHFWLWLVRIQRLPSRUWDQFHWR

WKHRXWVLGHZRUOGDQGOHDGVQHLWKHUWRJRRGQRUWRHYLO

6L[LQWKHVHFRQGSODFHPHDQV

7KHLQIOXHQFHVKRZVLWVHOILQWKHFDOYHVRIWKHOHJV

0LVIRUWXQH

7DUU\LQJEULQJVJRRGIRUWXQH

background image

,QPRYHPHQWWKHFDOIRIWKHOHJIROORZVWKHIRRWE\LWVHOILWFDQQHLWKHUJR

IRUZDUGQRUVWDQGVWLOO6LQFHWKHPRYHPHQWLVQRWVHOIJRYHUQHGLWERGHVLOO

2QHVKRXOGZDLWTXLHWO\XQWLORQHLVLPSHOOHGWRDFWLRQE\DUHDOLQIOXHQFH

7KHQRQHUHPDLQVXQLQMXUHG

1LQHLQWKHWKLUGSODFHPHDQV

7KHLQIOXHQFHVKRZVLWVHOILQWKHWKLJKV

+ROGVWRWKDWZKLFKIROORZVLW

7RFRQWLQXHLVKXPLOLDWLQJ

(YHU\PRRGRIWKHKHDUWLQIOXHQFHVXVWRPRYHPHQW:KDWWKHKHDUWGHVLUHV

WKHWKLJKVUXQDIWHUZLWKRXWDPRPHQWVKHVLWDWLRQWKH\KROGWRWKHKHDUW

ZKLFKWKH\IROORZ,QWKHOLIHRIPDQKRZHYHUDFWLQJRQWKHVSXURIHYHU\

FDSULFHLVZURQJDQGLIFRQWLQXHGOHDGVWRKXPLOLDWLRQ7KUHHFRQVLGHUDWLRQV

VXJJHVWWKHPVHOYHVKHUH)LUVWDPDQVKRXOGQRWUXQSUHFLSLWDWHO\DIWHUDOOWKH

SHUVRQVZKRPKHZRXOGOLNHWRLQIOXHQFHEXWPXVWEHDEOHWRKROGEDFN

XQGHUFHUWDLQFLUFXPVWDQFHV$VOLWWOHVKRXOGKH\LHOGLPPHGLDWHO\WRHYHU\

ZKLPRIWKRVHLQZKRVHVHUYLFHKHVWDQGV)LQDOO\ZKHUHWKHPRRGVRIKLV

RZQKHDUWDUHFRQFHUQHGKHVKRXOGQHYHULJQRUHWKHSRVVLELOLW\RILQKLELWLRQ

IRUWKLVLVWKHEDVLVRIKXPDQIUHHGRP

ƒ1LQHLQWKHIRXUWKSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

5HPRUVHGLVDSSHDUV

,IDPDQLVDJLWDWHGLQPLQG

$QGKLVWKRXJKWVJRKLWKHUDQGWKLWKHU

2QO\WKRVHIULHQGV

2QZKRPKHIL[HVKLVFRQVFLRXVWKRXJKWV

:LOOIROORZ

+HUHWKHSODFHRIWKHKHDUWLVUHDFKHG7KHLPSXOVHWKDWVSULQJVIURPWKLV

VRXUFHLVWKHPRVWLPSRUWDQWRIDOO,WLVRISDUWLFXODUFRQFHUQWKDWWKLV

LQIOXHQFHEHFRQVWDQWDQGJRRGWKHQLQVSLWHRIWKHGDQJHUDULVLQJIURPWKH

JUHDWVXVFHSWLELOLW\RIWKHKXPDQKHDUWWKHUHZLOOEHQRFDXVHIRUUHPRUVH

:KHQWKHTXLHWSRZHURIDPDQVRZQFKDUDFWHULVDWZRUNWKHHIIHFWV

SURGXFHGDUHULJKW$OOWKRVHZKRDUHUHFHSWLYHWRWKHYLEUDWLRQVRIVXFKD

VSLULWZLOOWKHQEHLQIOXHQFHG,QIOXHQFHRYHURWKHUVVKRXOGQRWH[SUHVVLWVHOI

DVDFRQVFLRXVDQGZLOOHGHIIRUWWRPDQLSXODWHWKHP7KURXJKSUDFWLFLQJVXFK

FRQVFLRXVLQFLWHPHQWRQHEHFRPHVZURXJKWXSDQGLVH[KDXVWHGE\WKH

HWHUQDOVWUHVVDQGVWUDLQ0RUHRYHUWKHHIIHFWVSURGXFHGDUHWKHQOLPLWHGWR

WKRVHRQZKRPRQHVWKRXJKWVDUHFRQVFLRXVO\IL[HG

ƒ1LQHLQWKHILIWKSODFHPHDQV

7KHLQIOXHQFHVKRZVLWVHOILQWKHEDFNRIWKHQHFN

1RUHPRUVH

7KHEDFNRIWKHQHFNLVWKHPRVWULJLGSDUWRIWKHERG\:KHQWKHLQIOXHQFH

background image

VKRZVLWVHOIWKHUHWKHZLOOUHPDLQVILUPDQGWKHLQIOXHQFHGRHVQRWOHDGWR

FRQIXVLRQ+HQFHUHPRUVHGRHVQRWHQWHULQWRFRQVLGHUDWLRQKHUH:KDW

WDNHVSODFHLQWKHGHSWKVRIRQHVEHLQJLQWKHXQFRQVFLRXVPLQG,WLVWUXH

WKDWLIZHFDQQRWEHLQIOXHQFHGRXUVHOYHVZHFDQQRWLQIOXHQFHWKHRXWVLGH

ZRUOG

6L[DWWKHWRSPHDQV

7KHLQIOXHQFHVKRZVLWVHOILQWKHMDZVFKHHNVDQGWRQJXH

7KHPRVWVXSHUILFLDOZD\RIWU\LQJWRLQIOXHQFHRWKHUVLVWKURXJKWDONWKDWKDV

QRWKLQJUHDOEHKLQGLW7KHLQIOXHQFHSURGXFHGE\VXFKPHUHWRQJXHZDJJLQJ

PXVWQHFHVVDULO\UHPDLQLQVLJQLILFDQW+HQFHQRLQGLFDWLRQLVDGGHG

UHJDUGLQJJRRGRUEDGIRUWXQH

LQGH[

+rQJ'XUDWLRQ

DERYH&+(17+($5286,1*7+81'(5

EHORZ6817+(*(17/(:,1'

7KHVWURQJWULJUDP&KrQLVDERYHWKHZHDNWULJUDP6XQEHORZ7KLV

KH[DJUDPLVWKHLQYHUVHRIWKHSUHFHGLQJRQH,QWKHODWWHUZHKDYHLQIOXHQFH

KHUHZHKDYHXQLRQDVDQHQGXULQJFRQGLWLRQ7KHWZRLPDJHVDUHWKXQGHU

DQGZLQGZKLFKDUHOLNHZLVHFRQVWDQWO\SDLUHGSKHQRPHQD7KHORZHU

WULJUDPLQGLFDWHVJHQWOHQHVVZLWKLQWKHXSSHUPRYHPHQWZLWKRXW

,QWKHVSKHUHRIVRFLDOUHODWLRQVKLSVWKHKH[DJUDPUHSUHVHQWVWKHLQVWLWXWLRQ

RIPDUULDJHDVWKHHQGXULQJXQLRQRIWKHVH[HV'XULQJFRXUWVKLSWKH\RXQJ

PDQVXERUGLQDWHVKLPVHOIWRWKHJLUOEXWLQPDUULDJHZKLFKLVUHSUHVHQWHGE\

WKHFRPLQJWRJHWKHURIWKHHOGHVWVRQDQGWKHHOGHVWGDXJKWHUWKHKXVEDQGLV

WKHGLUHFWLQJDQGPRYLQJIRUFHRXWVLGHZKLOHWKHZLIHLQVLGHLVJHQWOHDQG

VXEPLVVLYH

7+(-8'*0(17

'85$7,216XFFHVV1REODPH

3HUVHYHUDQFHIXUWKHUV

,WIXUWKHUVRQHWRKDYHVRPHZKHUHWRJR

'XUDWLRQLVDVWDWHZKRVHPRYHPHQWLVQRWZRUQGRZQE\KLQGUDQFHV,WLV

QRWDVWDWHRIUHVWIRUPHUHVWDQGVWLOOLVUHJUHVVLRQ'XUDWLRQLVUDWKHUWKHVHOI

FRQWDLQHGDQGWKHUHIRUHVHOIUHQHZLQJPRYHPHQWRIDQRUJDQL]HGILUPO\

LQWHJUDWHGZKROHWDNLQJSODFHLQDFFRUGDQFHZLWKLPPXWDEOHODZVDQG

EHJLQQLQJDQHZDWHYHU\HQGLQJ7KHHQGLVUHDFKHGE\DQLQZDUG

PRYHPHQWE\LQKDODWLRQV\VWROHFRQWUDFWLRQDQGWKLVPRYHPHQWWXUQVLQWR

DQHZEHJLQQLQJLQZKLFKWKHPRYHPHQWLVGLUHFWHGRXWZDUGLQH[KDODWLRQ

GLDVWROHH[SDQVLRQ

background image

+HDYHQO\ERGLHVH[HPSOLI\GXUDWLRQ7KH\PRYHLQWKHLUIL[HGRUELWVDQG

EHFDXVHRIWKLVWKHLUOLJKWJLYLQJSRZHUHQGXUHV7KHVHDVRQVRIWKH\HDU

IROORZDIL[HGODZRIFKDQJHDQGWUDQVIRUPDWLRQKHQFHFDQSURGXFHHIIHFWV

WKDWHQGXUH

6ROLNHZLVHWKHGHGLFDWHGPDQHPERGLHVDQHQGXULQJPHDQLQJLQKLVZD\

RIOLIHDQGWKHUHE\WKHZRUOGLVIRUPHG,QWKDWZKLFKJLYHVWKLQJVWKHLU

GXUDWLRQZHFDQFRPHWRXQGHUVWDQGWKHQDWXUHRIDOOEHLQJVLQKHDYHQDQG

RQHDUWK

7+(,0$*(

7KXQGHUDQGZLQGWKHLPDJHRI'85$7,21

7KXVWKHVXSHULRUPDQVWDQGVILUP

$QGGRHVQRWFKDQJHKDVGLUHFWLRQ

7KXQGHUUROOVDQGWKHZLQGEORZVERWKDUHH[DPSOHVRIH[WUHPHPRELOLW\

DQGVRDUHVHHPLQJO\WKHYHU\RSSRVLWHRIGXUDWLRQEXWWKHODZVJRYHUQLQJ

WKHLUDSSHDUDQFHDQGVXEVLGHQFHWKHLUFRPLQJDQGJRLQJHQGXUH,QWKHVDPH

ZD\WKHLQGHSHQGHQFHRIWKHVXSHULRUPDQLVQRWEDVHGRQULJLGLW\DQG

LPPRELOLW\RIFKDUDFWHU+HDOZD\VNHHSVDEUHDVWRIWKHWLPHDQGFKDQJHV

ZLWKLW:KDWHQGXUHVLVWKHXQVZHUYLQJGLUHFWLYHWKHLQQHUODZRIKLV

EHLQJZKLFKGHWHUPLQHVDOOKLVDFWLRQV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

6HHNLQJGXUDWLRQWRRKDVWLO\EULQJVPLVIRUWXQHSHUVLVWHQWO\

1RWKLQJWKDWZRXOGIXUWKHU

:KDWHYHUHQGXUHVFDQEHFUHDWHGRQO\JUDGXDOO\E\ORQJFRQWLQXHGZRUNDQG

FDUHIXOUHIOHFWLRQ,QWKHVDPHVHQVH/DRWVHVD\V,IZHZLVKWRFRPSUHVV

VRPHWKLQJZHPXVWILUVWOHWLWIXOO\H[SDQG+HZKRGHPDQGVWRRPXFKDW

RQFHLVDFWLQJSUHFLSLWDWHO\DQGEHFDXVHKHDWWHPSWVWRRPXFKKHHQGVE\

VXFFHHGLQJLQQRWKLQJ

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

5HPRUVHGLVDSSHDUV

7KHVLWXDWLRQLVDEQRUPDO$PDQVIRUFHRIFKDUDFWHULVJUHDWHUWKDQWKH

DYDLODEOHPDWHULDOSRZHU7KXVKHPLJKWEHDIUDLGRIDOORZLQJKLPVHOIWR

DWWHPSWVRPHWKLQJEH\RQGKLVVWUHQJWK+RZHYHUVLQFHLWLVWKHWLPHRI

'85$7,21LWLVSRVVLEOHIRUKLPWRFRQWUROKLVLQQHUVWUHQJWKDQGVRWR

DYRLGH[FHVV&DXVHIRUUHPRUVHWKHQGLVDSSHDUV

1LQHLQWKHWKLUGSODFHPHDQV

+HZKRGRHVQRWJLYHGXUDWLRQWRKLVFKDUDFWHU

0HHWVZLWKGLVJUDFH

3HUVLVWHQWKXPLOLDWLRQ

background image

,IDPDQUHPDLQVDWWKHPHUF\RIPRRGVRIKRSHRUIHDUDURXVHGE\WKHRXWHU

ZRUOGKHORVHVKLVLQQHUFRQVLVWHQF\RIFKDUDFWHU6XFKLQFRQVLVWHQF\

LQYDULDEO\OHDGVWRGLVWUHVVLQJH[SHULHQFHV7KHVHKXPLOLDWLRQVRIWHQFRPH

IURPDQXQIRUHVHHQTXDUWHU6XFKH[SHULHQFHVDUHQRWPHUHO\HIIHFWV

SURGXFHGE\WKHH[WHUQDOZRUOGEXWORJLFDOFRQVHTXHQFHVHYRNHGE\KLVRZQ

QDWXUH

1LQHLQWKHIRXUWKSODFHPHDQV

1RJDPHLQWKHILHOG

,IZHDUHLQSXUVXLWRIJDPHDQGZDQWWRJHWDVKRWDWDTXDUU\ZHPXVWVHW

DERXWLWLQWKHULJKWZD\$PDQZKRSHUVLVWVLQVWDONLQJJDPHLQDSODFH

ZKHUHWKHUHLVQRQHPD\ZDLWIRUHYHUZLWKRXWILQGLQJDQ\3HUVLVWHQFHLQ

VHDUFKLVQRWHQRXJK:KDWLVQRWVRXJKWLQWKHULJKWZD\LVQRWIRXQG

6L[LQWKHILIWKSODFHPHDQV

*LYLQJGXUDWLRQWRRQHVFKDUDFWHUWKURXJKSHUVHYHUDQFH

7KLVLVJRRGIRUWXQHIRUDZRPDQPLVIRUWXQHIRUDPDQ

$ZRPDQVKRXOGIROORZDPDQKHUZKROHOLIHORQJEXWDPDQVKRXOGDWDOO

WLPHVKROGWRZKDWLVKLVGXW\DWWKHJLYHQPRPHQW6KRXOGKHSHUVLVWHQWO\

VHHNWRFRQIRUPWRWKHZRPDQLWZRXOGEHDPLVWDNHIRUKLP$FFRUGLQJO\LW

LVDOWRJHWKHUULJKWIRUDZRPDQWRKROGFRQVHUYDWLYHO\WRWUDGLWLRQEXWDPDQ

PXVWDOZD\VEHIOH[LEOHDQGDGDSWDEOHDQGDOORZKLPVHOIWREHJXLGHGVROHO\

E\

ZKDWKLVGXW\UHTXLUHV

LQGH[

7815HWUHDW

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ.r1.((3,1*67,//02817$,1

7KHSRZHURIWKHGDUNLVDVFHQGLQJ7KHOLJKWUHWUHDWVWRVHFXULW\VRWKDWWKH

GDUNFDQQRWHQFURDFKXSRQLW7KLVUHWUHDWLVDPDWWHUQRWRIPDQVZLOOEXWRI

QDWXUDOODZ7KHUHIRUHLQWKLVFDVHZLWKGUDZDOLVSURSHULWLVWKHFRUUHFWZD\

WREHKDYHLQRUGHUQRWWRH[KDXVWRQHVIRUFHV

,QWKHFDOHQGDUWKLVKH[DJUDPLVOLQNHGZLWKWKHVL[WKPRQWK-XO\$XJXVW

LQZKLFKWKHIRUFHVRIZLQWHUDUHDOUHDG\VKRZLQJWKHLULQIOXHQFH

7+(-8'*0(17

5(75($76XFFHVV

,QZKDWLVVPDOOSHUVHYHUDQFHIXUWKHUV

background image

&RQGLWLRQVDUHVXFKWKDWWKHKRVWLOHIRUFHVIDYRUHGE\WKHWLPHDUHDGYDQFLQJ

,QWKLVFDVHUHWUHDWLVWKHULJKWFRXUVHDQGLWLVQRWWREHFRQIXVHGZLWKIOLJKW

)OLJKWPHDQVVDYLQJRQHVHOIXQGHUDQ\FLUFXPVWDQFHVZKHUHDVUHWUHDWLVD

VLJQRIVWUHQJWK:HPXVWEHFDUHIXOQRWWRPLVVWKHULJKWPRPHQWZKLOHZH

DUHLQIXOOSRVVHVVLRQRISRZHUDQGSRVLWLRQ7KHQZHVKDOOEHDEOHWR

LQWHUSUHWWKHVLJQVRIWKHWLPHEHIRUHLWLVWRRODWHDQGWRSUHSDUHIRU

SURYLVLRQDOUHWUHDWLQVWHDGRIEHLQJGUDZQLQWRDGHVSHUDWHOLIHDQGGHDWK

VWUXJJOH7KXVZHGRQRWVLPSOHDEDQGRQWKHILHOGWRWKHRSSRQHQWZHPDNH

LWGLIILFXOWIRUKLPWRDGYDQFHE\VKRZLQJSHUVHYHUDQFHLQVLQJOHDFWVRI

UHVLVWDQFH,QWKLVZD\ZHSUHSDUHZKLOHUHWUHDWLQJIRUWKHFRXQWHU

PRYHPHQW8QGHUVWDQGLQJWKHODZVRIDFRQVWUXFWLYHUHWUHDWRIWKLVVRUWLV

QRWHDV\7KHPHDQLQJWKDWOLHVKLGGHQLQVXFKDWLPHLVLPSRUWDQW

7+(,0$*(

0RXQWDLQXQGHUKHDYHQWKHLPDJHRI5(75($7

7KXVWKHVXSHULRUPDQNHHSVWKHLQIHULRUPDQDWDGLVWDQFH

1RWDQJULO\EXWZLWKUHVHUYH

7KHPRXQWDLQULVHVXSXQGHUKHDYHQEXWRZLQJWRLWVQDWXUHLWILQDOO\FRPHV

WRDVWRS+HDYHQRQWKHRWKHUKDQGUHWUHDWVXSZDUGEHIRUHLWLQWRWKH

GLVWDQFHDQGUHPDLQVRXWRIUHDFK7KLVV\PEROL]HVWKHEHKDYLRURIWKH

VXSHULRUPDQWRZDUGDFOLPELQJLQIHULRUKHUHWUHDWVLQWRKLVRZQWKRXJKWVDV

WKHLQIHULRUPDQFRPHVIRUZDUG+HGRHVQRWKDWHKLPIRUKDWUHGLVDIRUP

RIVXEMHFWLYHLQYROYHPHQWE\ZKLFKZHDUHERXQGWRWKHKDWHGREMHFW7KH

VXSHULRUPDQVKRZVVWUHQJWKKHDYHQLQWKDWKHEULQJVWKHLQIHULRUPDQWRD

VWDQGVWLOOPRXQWDLQE\KLVGLJQLILHGUHVHUYH

7+(/,1(6

ƒ6L[DWWKHEHJLQQLQJPHDQV

$WWKHWDLOLQUHWUHDW7KLVLVGDQJHURXV

2QHPXVWQRWZLVKWRXQGHUWDNHDQ\WKLQJ

6LQFHWKHKH[DJUDPLVWKHSLFWXUHRIVRPHWKLQJWKDWLVUHWUHDWLQJWKHORZHVW

OLQHUHSUHVHQWVWKHWDLODQGWKHWRSOLQHWKHKHDG,QDUHWUHDWLWLV

DGYDQWDJHRXVWREHDWWKHIURQW+HUHRQHLVDWWKHEDFNLQLPPHGLDWHFRQWDFW

ZLWKWKHSXUVXLQJHQHP\7KLVLVGDQJHURXVDQGXQGHUVXFKFLUFXPVWDQFHV

LWLVQRWDGYLVDEOHWRXQGHUWDNHDQ\WKLQJ.HHSLQJVWLOOLVWKHHDVLHVWZD\RI

HVFDSLQJIURPWKHWKUHDWHQLQJGDQJHU

6L[LQWKHVHFRQGSODFHPHDQV

KHKROGVKLPIDVWZLWK\HOORZR[KLGH

1RRQHFDQWHDUKLPORRVH

<HOORZLVWKHFRORURIWKHPLGGOH,WLQGLFDWHVWKDWZKLFKLVFRUUHFWDQGLQOLQH

ZLWKGXW\2[KLGHLVVWURQJDQGQRWWREHWRUQ

:KLOHWKHVXSHULRUPHQUHWUHDWDQGWKHLQIHULRUSUHVVDIWHUWKHPWKH

background image

LQIHULRUPDQUHSUHVHQWHGKHUHKROGVRQVRILUPO\DQGWLJKWO\WRWKHVXSHULRU

PDQWKDWWKHODWWHUFDQQRWVKDNHKLPRII$QGEHFDXVHKHLVLQTXHVWRIZKDW

LVULJKWDQVRVWURQJLQSXUSRVHKHUHDFKHVKLVJRDO7KXVWKHOLQHFRQILUPV

ZKDWLVVDLGLQWKH-XGJPHQW,QZKDWLVVPDOOKHUHHTXLYDOHQWWRLQWKH

LQIHULRUPDQSHUVHYHUDQFHIXUWKHUV

1LQHLQWKHWKLUGSODFHPHDQV

$KDOWHGUHWUHDW

,VQHUYHZUDFNLQJDQGGDQJHURXV

7RUHWDLQSHRSOHDVPHQDQGPDLGVHUYDQWV

%ULQJVJRRGIRUWXQH

:KHQLWLVWLPHWRUHWUHDWLWLVERWKXQSOHDVDQWDQGGDQJHURXVWREHKHOGEDFN

EHFDXVHWKHQRQHQRORQJHUKDVIUHHGRPRIDFWLRQ,QVXFKDFDVHWKHRQO\

H[SHGLHQWLVWRWDNHLQWRRQHVVHUYLFHVRWRVSHDNWKRVHZKRUHIXVHWROHWRQH

JRVRWKDWRQHPD\DWOHDVWNHHSRQHVLQLWLDWLYHDQGQRWIDOOKHOSOHVVO\XQGHU

WKHLUGRPLQDWLRQ%XWHYHQZLWKWKLVH[SHGLHQWWKHVLWXDWLRQLVIDUIURP

VDWLVIDFWRU\IRUZKDWFDQRQHKRSHWRDFFRPSOLVKZLWKVXFKVHUYDQWV"

1LQHLQWKHIRXUWKSODFHPHDQV

9ROXQWDU\UHWUHDWEULQJVJRRGIRUWXQHWRWKHVXSHULRUPDQ

$QGGRZQIDOOWRWKHLQIHULRUPDQ

,QUHWUHDWLQJWKHVXSHULRUPDQLVLQWHQWRQWDNLQJKLVGHSDUWXUHZLOOLQJO\DQG

LQDOOIULHQGOLQHVV+HHDVLO\DGMXVWVKLVPLQGWRUHWUHDWEHFDXVHLQUHWUHDWLQJ

KHGRHVQRWKDYHWRGRYLROHQFHWRKLVFRQYLFWLRQV7KHRQO\RQHZKRVXIIHUV

LVWKHLQIHULRUPDQIURPZKRPKHUHWUHDWVZKRZLOOGHJHQHUDWHZKHQ

GHSULYHGRIWKHJXLGDQFHRIWKHVXSHULRUPDQ

ƒ1LQHLQWKHILIWKSODFHPHDQV

)ULHQGO\UHWUHDW3HUVHYHUDQFHEULQJVJRRGIRUWXQH

,WLVWKHEXVLQHVVRIWKHVXSHULRUPDQWRUHFRJQL]HLQWLPHWKDWWKHPRPHQW

IRUUHWUHDWKDVFRPH,IWKHULJKWPRPHQWLVFKRVHQWKHUHWUHDWFDQEHFDUULHG

RXWZLWKLQWKHIRUPVRISHUIHFWIULHQGOLQHVVZLWKRXWWKHQHFHVVLW\RI

GLVDJUHHDEOHGLVFXVVLRQV<HWIRUDOOWKHREVHUYDQFHRIDPHQLWLHVDEVROXWH

ILUPQHVVRIGHFLVLRQLVQHFHVVDU\LIRQHLVQRWWREHOHGDVWUD\E\LUUHOHYDQW

FRQVLGHUDWLRQV

1LQHDWWKHWRSPHDQV

&KHHUIXOUHWUHDW(YHU\WKLQJVHUYHVWRIXUWKHU

7KHVLWXDWLRQLVXQHTXLYRFDO,QQHUGHWDFKPHQWKDVEHFRPHDQHVWDEOLVKHG

IDFWDQGZHDUHDWOLEHUW\WRGHSDUW:KHQRQHVHHVWKHZD\DKHDGWKXV

FOHDUO\IUHHRIDOOGRXEWDFKHHUIXOPRRGVHWVLQDQGRQHFKRRVHVZKDWLV

ULJKWZLWKRXWIXUWKHUWKRXJKW6XFKDFOHDUSDWKDKHDGDOZD\VOHDGVWRWKH

JRRG

LQGH[

background image

7D&KXDQJ7KH3RZHURIWKH*UHDW

DERYH&+r17+($5286,1*7+81'(5

DERYH&+,(17+(&5($7,9(+($9(1

7KHJUHDWOLQHVWKDWLVWKHOLJKWVWURQJOLQHVDUHSRZHUIXO)RXUOLJKWOLQHV

KDYHHQWHUHGWKHKH[DJUDPIURPEHORZDQGDUHDERXWWRDVFHQGKLJKHU7KH

XSSHUWULJUDPLV&KrQWKH$URXVLQJWKHORZHULVFKLHQWKH&UHDWLYH

&KLHQLVVWURQJ&KrQSURGXFHVPRYHPHQW7KHXQLRQRIPRYHPHQWDQG

VWUHQJWKJLYHVWKHPHDQLQJRI7+(32:(52)7+(*5($77KHKH[DJUDP

LVOLQNHGZLWKWKHVHFRQGPRQWK0DUFK$SULO

7+(-8'*0(17

7+(32:(52)7+(*5($73HUVHYHUDQFHIXUWKHUV

7KHKH[DJUDPSRLQWVWRDWLPHZKHQLQQHUZRUWKPRXQWVZLWKJUHDWIRUFH

DQGFRPHVWRSRZHU%XWLWVVWUHQJWKKDVDOUHDG\SDVVHGEH\RQGWKHPHGLDQ

OLQHKHQFHWKHUHLVGDQJHUWKDWRQHPD\UHO\HQWLUHO\RQRQHVRZQSRZHU

DQGIRUJHWWRDVNZKDWLVULJKW7KHUHLVGDQJHUWRRWKDWEHLQJLQWHQWRQ

PRYHPHQWZHPD\QRWZDLWIRUWKHULJKWWLPH7KHUHIRUHWKHDGGHG

VWDWHPHQWWKDWSHUVHYHUDQFHIXUWKHUV)RUWKDWLVWUXO\JUHDWSRZHUZKLFKGRHV

QRWGHJHQHUDWHLQWRPHUHIRUFHEXWUHPDLQVLQZDUGO\XQLWHGZLWKWKH

IXQGDPHQWDOSULQFLSOHVRIULJKWDQGRIMXVWLFH:KHQZHXQGHUVWDQGWKLV

SRLQWQDPHO\WKDWJUHDWQHVVDQGMXVWLFHPXVWEHLQGLVVROXEO\XQLWHGZH

XQGHUVWDQGWKHWUXHPHDQLQJRIDOOWKDWKDSSHQVLQKHDYHQDQGRQHDUWK

7+(,0$*(

7KXQGHULQKHDYHQDERYH

7KHLPDJHRI7+(32:(52)7+(*5($7

7KXVWKHVXSHULRUPDQGRHVQRWWUHDGXSRQSDWKV

7KDWGRQRWDFFRUGZLWKHVWDEOLVKHGRUGHU

7KXQGHUHOHFWULFDOHQHUJ\PRXQWVXSZDUGLQWKHVSULQJ7KHGLUHFWLRQRI

WKLVPRYHPHQWLVLQKDUPRQ\ZLWKWKDWRIWKHPRYHPHQWRIKHDYHQ,WLV

WKHUHIRUHDPRYHPHQWLQDFFRUGZLWKKHDYHQSURGXFLQJJUHDWSRZHU

+RZHYHUWUXHJUHDWQHVVGHSHQGVRQEHLQJLQKDUPRQ\ZLWKZKDWLVULJKW

7KHUHIRUHLQWLPHVRIJUHDWSRZHUWKHVXSHULRUPDQDYRLGVGRLQJDQ\WKLQJ

WKDWLVQRWLQKDUPRQ\ZLWKWKHHVWDEOLVKHGRUGHU

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

3RZHULQWKHWRHV

background image

&RQWLQXLQJEULQJVPLVIRUWXQH

7KLVLVFHUWDLQO\WUXH

7KHWRHVDUHLQWKHORZHVWSODFHDQGDUHUHDG\WRDGYDQFH6ROLNHZLVHJUHDW

SRZHULQORZO\VWDWLRQLVLQFOLQHGWRHIIHFWDGYDQFHE\IRUFH7KLVLIFDUULHG

IXUWKHUZRXOGFHUWDLQO\OHDGWRPLVIRUWXQHDQGWKHUHIRUHE\ZD\RIDGYLFHD

ZDUQLQJLVDGGHG

1LQHLQWKHVHFRQGSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHSUHPLVHKHUHLVWKDWWKHJDWHVWRVXFFHVVDUHEHJLQQLQJWRRSHQ

5HVLVWDQFHJLYHVZD\DQGZHIRUJHDKHDG7KLVLVWKHSRLQWDWZKLFKRQO\WRR

HDVLO\ZHEHFRPHWKHSUH\RIH[XEHUDQWVHOIFRQILGHQFH7KLVLVZK\WKH

RUDFOHVD\VWKDWSHUVHYHUDQFHLHSHUVHYHUDQFHLQLQQHUHTXLOLEULXPZLWKRXW

H[FHVVLYHXVHRISRZHUEULQJVJRRGIRUWXQH

1LQHLQWKHWKLUGSODFHPHDQV

7KHLQIHULRUPDQZRUNVWKURXJKSRZHU

7KHVXSHULRUPDQGRHVQRWDFWWKXV

7RFRQWLQXHLVGDQJHURXV

$JRDWEXWWVDJDLQVWDKHGJH

$QGJHWVLWVKRUQVHQWDQJOHG

0DNLQJDERDVWRISRZHUOHDGVWRHQWDQJOHPHQWVMXVWDVDJRDWHQWDQJOHVLWV

KRUQVZKHQLWEXWWVDJDLQVWDKHGJH:KHUHDVDQLQIHULRUPDQUHYHOVLQ

SRZHUZKHQKHFRPHVLQWRSRVVHVVLRQRILWWKHVXSHULRUPDQQHYHUPDNHV

WKLVPLVWDNH+HLVFRQVFLRXVDWDOOWLPHVRIWKHGDQJHURISXVKLQJDKHDG

UHJDUGOHVVRIFLUFXPVWDQFHVDQGWKHUHIRUHUHQRXQFHVLQJRRGWLPHWKHHPSW\

GLVSOD\RIIRUFH

ƒ1LQHLQWKHIRXUWKSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

5HPRUVHGLVDSSHDUV

7KHKHGJHRSHQVWKHUHLVQRHQWDQJOHPHQW

3RZHUGHSHQGVXSRQWKHD[OHRIDELJFDUW

,IDPDQJRHVRQTXLHWO\DQGSHUVHYHULQJO\ZRUNLQJDWWKHUHPRYDORI

UHVLVWDQFHVVXFFHVVFRPHVLQWKHHQG7KHREVWUXFWLRQVJLYHZD\DQGDOO

RFFDVLRQIRUUHPRUVHDULVLQJIURPH[FHVVLYHXVHRISRZHUGLVDSSHDUV

6XFKDPDQVSRZHUGRHVQRWVKRZH[WHUQDOO\\HWLWFDQPRYHKHDY\ORDGV

OLNHDELJFDUWZKRVHUHDOVWUHQJWKOLHVLQLWVD[OH7KHOHVVWKDWSRZHULV

DSSOLHGRXWZDUGO\WKHJUHDWHULWVHIIHFW

6L[LQWKHILIWKSODFHPHDQV

/RVHVWKHJRDWZLWKHDVH

1RUHPRUVH

background image

7KHJRDWLVQRWHGIRUKDUGQHVVRXWZDUGO\DQGZHDNQHVVZLWKLQ1RZWKH

VLWXDWLRQLVVXFKWKDWHYHU\WKLQJLVHDV\WKHUHLVQRPRUHUHVLVWDQFH2QHFDQ

JLYHXSDEHOOLJHUHQWVWXEERUQZD\RIDFWLQJDQGZLOOQRWKDYHWRUHJUHWLW

6L[DWWKHWRSPHDQV

$JRDWEXWWVDJDLQVWDKHGJH

,WFDQQRWJREDFNZDUGLWFDQQRWJRIRUZDUG

1RWKLQJVHUYHVWRIXUWKHU

,IRQHQRWHVWKHGLIILFXOW\WKLVEULQJVJRRGIRUWXQH

,IZHYHQWXUHWRRIDUZHFRPHWRDGHDGORFNXQDEOHHLWKHUWRDGYDQFHRUWR

UHWUHDWDQGZKDWHYHUZHGRPHUHO\VHUYHVWRFRPSOLFDWHWKLQJIXUWKHU6XFK

REVWLQDF\OHDGVWRLQVXSHUDEOHGLIILFXOWLHV%XWLIUHDOL]LQJWKHVLWXDWLRQZH

FRPSRVHRXUVHOYHVDQGGHFLGHQRWWRFRQWLQXHHYHU\WKLQJZLOOULJKWLWVHOILQ

WLPH

LQGH[

&KLQ3URJUHVV

DERYH/,7+(&/,1*,1*),5(

EHORZ.817+(5(&(37,9(($57+

7KHKH[DJUDPUHSUHVHQWVWKHVXQULVLQJRYHUWKHHDUWK,WLVWKHUHIRUHWKH

V\PERORIUDSLGHDV\SURJUHVVZKLFKDWWKHVDPHWLPHPHDQVHYHUZLGHQLQJ

H[SDQVLRQDQGFODULW\

7+(-8'*0(17

352*5(667KHSRZHUIXOSULQFH

,VKRQRUHGZLWKKRUVHVLQODUJHQXPEHUV

,QDVLQJOHGD\KHLVJUDQWHGDXGLHQFHWKUHHWLPHV

$VDQH[DPSOHRISURJUHVVWKLVSLFWXUHVDWLPHZKHQDSRZHUIXOIHXGDOORUG

UDOOLHVWKHRWKHUORUGVDURXQGWKHVRYHUHLJQDQGSOHGJHVIHDOW\DQGSHDFH7KH

VRYHUHLJQUHZDUGVKLPULFKO\DQGLQYLWHVKLPWRDFORVHULQWLPDF\

$WZRIROGLGHDLVVHWIRUWKKHUH7KHDFWXDOHIIHFWRIWKHSURJUHVVHPDQDWHV

IURPDPDQZKRLVLQDGHSHQGHQWSRVLWLRQDQGZKRPWKHRWKHUVUHJDUGDV

WKHLUHTXDODQGDUHWKHUHIRUHZLOOLQJWRIROORZ7KLVOHDGHUKDVHQRXJKFODULW\

RIYLVLRQQRWWRDEXVHKLVJUHDWLQIOXHQFHEXWWRXVHLWUDWKHUIRUWKHEHQHILWRI

KLVUXOHU+LVUXOHULQWXUQLVIUHHRIDOOMHDORXV\VKRZHUVSUHVHQWVRQWKH

JUHDWPDQDQGLQYLWHVKLPFRQWLQXDOO\WRKLVFRXUW$QHQOLJKWHQHGUXOHU

DQGDQREHGLHQWVHUYDQWWKLVLVWKHFRQGLWLRQRQZKLFKJUHDWSURJUHVV

GHSHQGV

background image

7+(,0$*(

7KHVXQULVHVRYHUWKHHDUWK

7KHLPDJHRI352*5(66

7KXVWKHVXSHULRUPDQKLPVHOI

%ULJKWHQVKLVEULJKWYLUWXH

7KHOLJKWRIWKHVXQULVHVRYHUWKHHDUWKLVE\QDWXUHFOHDU7KHKLJKHUWKHVXQ

ULVHVWKHPRUHLWHPHUJHVIURPWKHGDUNPLVWVVSUHDGLQJWKHSULVWLQHSXULW\

RILWVUD\VRYHUDQHYHUZLGHQLQJDUHD7KHUHDOQDWXUHRIPDQLVOLNHZLVH

RULJLQDOO\JRRGEXWLWEHFRPHVFORXGHGE\FRQWDFWZLWKHDUWKO\WKLQJVDQG

WKHUHIRUHQHHGVSXULILFDWLRQEHIRUHLWFDQVKLQHIRUWKLQLWVQDWLYHFODULW\

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

3URJUHVVLQJEXWWXUQHGEDFN

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

,IRQHPHHWVZLWKQRFRQILGHQFHRQHVKRXOGUHPDLQFDOP

1RPLVWDNH

$WDWLPHZKHQDOOHOHPHQWVDUHSUHVVLQJIRUSURJUHVVZHDUHVWLOOXQFHUWDLQ

ZKHWKHULQWKHFRXUVHRIDGYDQFHZHPD\QRWPHHWZLWKDUHEXII7KHQWKH

WKLQJWRGRLVVLPSO\FRQWLQXHLQZKDWLVULJKWLQWKHHQGWKLVZLOOEULQJJRRG

IRUWXQH,WPD\EHWKDWZHPHHWZLWKQRFRQILGHQFH,QWKLVFDVHZHRXJKWQRW

WRWU\WRZLQFRQILGHQFHUHJDUGOHVVRIWKHVLWXDWLRQEXWVKRXOGUHPDLQFDOP

DQGFKHHUIXODQGUHIXVHWREHURXVHGWRDQJHU7KXVZHUHPDLQIUHHRI

PLVWDNHV

6L[LQWKHVHFRQGSODFHPHDQV

3URJUHVVLQJEXWLQVRUURZ

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHQRQHREWDLQVJUHDWKDSSLQHVVIURPRQHVDQFHVWUHVV

3URJUHVVLVKDOWHGDQLQGLYLGXDOLVNHSWIURPJHWWLQJLQWRXFKZLWKWKHPDQ

LQDXWKRULW\ZLWKZKRPKHKDVDFRQQHFWLRQ:KHQWKLVKDSSHQVKHPXVW

UHPDLQSHUVHYHULQJDOWKRXJKKHLVJULHYHGWKHQZLWKDPDWHUQDOJHQWOHQHVV

WKHPDQLQTXHVWLRQZLOOEHVWRZJUHDWKDSSLQHVVXSRQKLP7KLVKDSSLQHVV

FRPHVWRKLPDQGLVZHOOGHVHUYHGEHFDXVHLQWKLVFDVHPXWXDODWWUDFWLRQGRHV

QRWUHVWRQVHOILVKRUSDUWLVDQPRWLYHVEXWRQILUPDQGFRUUHFWSULQFLSOHV

6L[LQWKHWKLUGSODFHPHDQV

$OODUHLQDFFRUG5HPRUVHGLVDSSHDUV

$PDQVWULYHVRQZDUGLQDVVRFLDWLRQZLWKRWKHUVZKRVHEDFNLQJHQFRXUDJHV

KLP7KLVGLVSHOVDQ\FDXVHIRUUHJUHWRYHUWKHIDFWWKDWKHGRHVQRWKDYH

HQRXJKLQGHSHQGHQFHWRWULXPSKXQDLGHGRYHUHYHU\KRVWLOHWXUQRIIDWH

background image

1LQHLQWKHIRXUWKSODFHPHDQV

3URJUHVVOLNHDKDPVWHU

3HUVHYHUDQFHEULQJVGDQJHU

,QWLPHVRISURJUHVVLWLVHDV\IRUVWURQJPHQLQWKHZURQJSODFHVWRDPDVV

JUHDWSRVVHVVLRQV%XWVXFKFRQGXFWVKXQVWKHOLJKW$QGVLQFHWLPHVRI

SURJUHVVDUHLQHYLWDEO\EURXJKWWRWKHOLJKWSHUVHYHUDQFHLQVXFKDFWLRQ

DOZD\VOHDGVWRGDQJHU

ƒ6L[LQWKHILIWKSODFHPHDQV

5HPRUVHGLVDSSHDUV

7DNHQRWJDLQDQGORVVWRKHDUW

8QGHUWDNLQJVEULQJJRRGIRUWXQH

(YHU\WKLQJVHUYHVWRIXUWKHU

7KHVLWXDWLRQGHVFULEHGKHUHLVWKDWRIRQHZKRILQGLQJKLPVHOILQDQ

LQIOXHQWLDOSRVLWLRQLQDWLPHRISURJUHVVUHPDLQVJHQWOHDQGUHVHUYHG+H

PLJKWUHSURDFKKLPVHOIIRUODFNRIHQHUJ\LQPDNLQJWKHPRVWRIWKH

SURSLWLRXVQHVVRIWKHWLPHDQGREWDLQLQJDOOSRVVLEOHDGYDQWDJH+RZHYHU

WKLVUHJUHWSDVVHVDZD\+HPXVWQRWWDNHHLWKHUORVVRUJDLQWRKHDUWWKH\DUH

PLQRUFRQVLGHUDWLRQV:KDWPDWWHUVPXFKPRUHLVWKHIDFWWKDWLQWKLVZD\

KHKDVDVVXUHGKLPVHOIRIRSSRUWXQLWLHVIRUVXFFHVVIXODQGEHQHILFHQW

LQIOXHQFH

1LQHDWWKHWRSPHDQV

0DNLQJSURJUHVVZLWKWKHKRUQVLVSHUPLVVLEOH

2QO\IRUWKHSXUSRVHRISXQLVKLQJRQHVRZQFLW\

7REHFRQVFLRXVRIGDQJHUEULQJVJRRGIRUWXQH

1REODPH

3HUVHYHUDQFHEULQJVKXPLOLDWLRQ

0DNLQJSURJUHVVZLWKORZHUHGKRUQVLHDFWLQJRQWKHRIIHQVLYHLV

SHUPLVVLEOHLQWLPHVOLNHWKRVHUHIHUUHGWRKHUHRQO\LQGHDOLQJZLWKWKH

PLVWDNHVRIRQHVRZQSHRSOH(YHQWKHQZHPXVWEHDULQPLQGWKDW

SURFHHGLQJRQWKHRIIHQVLYHPD\DOZD\VEHGDQJHURXV,QWKLVZD\ZHDYRLG

WKHPLVWDNHVWKDWRWKHUZLVHWKUHDWHQDQGVXFFHHGLQZKDWZHVHWRXWWRGR

2QWKHRWKHUKDQGSHUVHYHUDQFHLQVXFKRYHUHQHUJHWLFEHKDYLRUHVSHFLDOO\

WRZDUGSHUVRQVZLWKZKRPWKHUHLVQRFORVHFRQQHFWLRQZLOOOHDGWR

KXPLOLDWLRQ

LQGH[

0LQJ,'DUNHQLQJRIWKHOLJKW

DERYH.817+(5(&(37,9(($57+

EHORZ/,7+(&/,1*,1*),5(

background image

+HUHWKHVXQKDVVXQNXQGHUWKHHDUWKDQGLVWKHUHIRUHGDUNHQHG7KHQDPH

RIWKHKH[DJUDPPHDQVOLWHUDOO\ZRXQGLQJRIWKHEULJKWKHQFHWKH

LQGLYLGXDOOLQHVFRQWDLQIUHTXHQWUHIHUHQFHVWRZRXQGLQJ7KHVLWXDWLRQLV

WKHH[DFWRSSRVLWHRIWKDWLQWKHIRUHJRLQJKH[DJUDP,QWKHODWWHUDZLVHPDQ

DWWKHKHDGRIDIIDLUVKDVDEOHKHOSHUVDQGLQFRPSDQ\ZLWKWKHPPDNHV

SURJUHVVKHUHDPDQRIGDUNQDWXUHLVLQDSRVLWLRQRIDXWKRULW\DQGEULQJV

KDUPWRWKHZLVHDQGDEOHPDQ

7+(-8'*0(17

'$5.(1,1*2)7+(/,*+7,QDGYHUVLW\

,WIXUWKHUVRQHWREHSHUVHYHULQJ

2QHPXVWQRWXQUHVLVWLQJO\OHWKLPVHOIEHVZHSWDORQJE\XQIDYRUDEOH

FLUFXPVWDQFHVQRUSHUPLWKLVVWHDGIDVWQHVVWREHVKDNHQ+HFDQDYRLGWKLV

E\

PDLQWDLQLQJKLVLQQHUOLJKWZKLOHUHPDLQLQJRXWZDUGO\\LHOGLQJDQG

WUDFWDEOH:LWKWKLVDWWLWXGHKHFDQRYHUFRPHHYHQWKHJUHDWHVWDGYHUVLWLHV

,QVRPHVLWXDWLRQVLQGHHGDPDQPXVWKLGHKLVOLJKWLQRUGHUWRPDNHKLV

ZLOOSUHYDLOLQVSLWHRIGLIILFXOWLHVLQKLVLPPHGLDWHHQYLURQPHQW

3HUVHYHUDQFHPXVWGZHOOLQLQPRVWFRQVFLRXVQHVVDQGVKRXOGQRWEH

GLVFHUQLEOHIURPZLWKRXW2QO\WKXVLVDPDQDEOHWRPDLQWDLQKLVZLOOLQWKH

IDFHRIGLIILFXOWLHV

7+(,0$*(

7KHOLJKWKDVVXQNLQWRWKHHDUWK

7KHLPDJHRI'$5.(1,1*2)7+(/,*+7

7KXVGRHVWKHVXSHULRUPDQOLYHZLWKWKHJUHDWPDVV

+HYHLOVKLVOLJKW\HWVWLOOVKLQHV

,QDWLPHRIGDUNQHVVLWLVHVVHQWLDOWREHFDXWLRXVDQGUHVHUYHG2QHVKRXOG

QRWQHHGOHVVO\DZDNHQRYHUZKHOPLQJHQPLW\E\LQFRQVLGHUDWHEHKDYLRU,Q

VXFKWLPHVRQHRXJKWQRWWRIDOOLQZLWKWKHSUDFWLFHVRIRWKHUVQHLWKHU

VKRXOGRQHGUDJWKHPFHQVRULRXVO\LQWRWKHOLJKW,QVRFLDOLQWHUFRXUVHRQH

VKRXOGQRWWU\WREHDOONQRZLQJ2QHVKRXOGOHWPDQ\WKLQJVSDVVZLWKRXW

EHLQJGXSHG

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

'DUNHQLQJRIWKHOLJKWGXULQJIOLJKW

+HORZHUVKLVZLQJV

7KHVXSHULRUPDQGRHVQRWHDWIRUWKUHHGD\V

2QKLVZDQGHULQJV

%XWKHKDVVRPHZKHUHWRJR

7KHKRVWKDVRFFDVLRQWRJRVVLSDERXWKLP

background image

:LWKJUDQGLRVHUHVROYHDPDQHQGHDYRUVWRVRDUDERYHDOOREVWDFOHVEXWWKXV

HQFRXQWHUVDKRVWLOHIDWH+HUHWUHDWVDQGHYDGHVWKHLVVXH7KHWLPHLV

GLIILFXOW:LWKRXWUHVWKHPXVWKXUU\DORQJZLWKQRSHUPDQHQWDELGLQJ

SODFH,IKHGRHVQRWZDQWWRPDNHFRPSURPLVHVZLWKLQKLPVHOIEXWLQVLVWV

RQUHPDLQLQJWUXHWRKLVSULQFLSOHVKHVXIIHUVGHSULYDWLRQ1HYHUWKHOHVVKH

KDVDIL[HGJRDOWRVWULYHIRUHYHQWKRXJKWKHSHRSOHZLWKZKRPKHOLYHVGR

QRWXQGHUVWDQGKLPDQGVSHDNLOORIKLP

ƒ6L[LQWKHVHFRQGSODFHPHDQV

'DUNHQLQJRIWKHOLJKWLQMXUHVKLPLQWKHOHIWWKLJK

+HJLYHVDLGZLWKWKHVWUHQJWKRIDKRUVH

*RRGIRUWXQH

+HUHWKH/RUGRI/LJKWLVLQDVXERUGLQDWHSODFHDQGLVZRXQGHGE\WKH/RUGRI

'DUNQHVV%XWWKHLQMXU\LVQRWIDWDOLWLVRQO\DKLQGUDQFH5HVFXHLVVWLOO

SRVVLEOH7KHZRXQGHGPDQJLYHVQRWKRXJKWWRKLPVHOIKHWKLQNVRQO\RI

VDYLQJWKHRWKHUVZKRDUHDOVRLQGDQJHU7KHUHIRUHKHWULHVZLWKDOOKLV

VWUHQJWKWRVDYHDOOWKDWFDQEHVDYHG7KHUHLVJRRGIRUWXQHLQWKXVDFWLQJ

DFFRUGLQJWRGXW\

1LQHLQWKHWKLUGSODFHPHDQV

'DUNHQLQJRIWKHOLJKWGXULQJWKHKXQWLQWKHVRXWK

7KHLUJUHDWOHDGHULVFDSWXUHG

2QHPXVWQRWH[SHFWSHUVHYHUDQFHWRRVRRQ

,WVHHPVDVLIFKDQFHZHUHDWZRUN:KLOHWKHVWURQJOR\DOPDQLVVWULYLQJ

HDJHUO\DQGLQJRRGIDLWKWRFUHDWHRUGHUKHPHHWVWKHULQJOHDGHURIWKH

GLVRUGHUDVLIE\DFFLGHQWDQGVHL]HVKLP7KXVYLFWRU\LVDFKLHYHG%XWLQ

DEROLVKLQJDEXVHVRQHPXVWQRWEHWRRKDVW\7KLVZRXOGWXUQRXWEDGO\

EHFDXVHWKHDEXVHVKDYHEHHQLQH[LVWHQFHVRORQJ

6L[LQWKHIRXUWKSODFHPHDQV

+HSHQHWUDWHVWKHOHIWVLGHRIWKHEHOO\

2QHJHWVDWWKHYHU\KHDUWRIWKHGDUNHQLQJRIWKHOLJKW

:HILQGRXUVHOYHVFORVHWRWKHFRPPDQGHURIGDUNQHVVDQGVRGLVFRYHUKLV

PRWVHFUHWWKRXJKWV,QWKLVZD\ZHUHDOL]HWKDWWKHUHLVQRORQJHUDQ\KRSHRI

LPSURYHPHQWDQGWKXVZHDUHHQDEOHGWROHDYHWKHVFHQHRIGLVDVWHUEHIRUH

WKHVWRUPEUHDNV

ƒ6L[LQWKHILIWKSODFHPHDQV

'DUNHQLQJRIWKHOLJKWDVZLWK3ULQFH&KL

3HUVHYHUDQFHIXUWKHUV

3ULQFH&KLOLYHGDWWKHFRXUWRIWKHHYLOW\UDQW&KRX+VLQZKRDOWKRXJKQRW

PHQWLRQHGE\QDPHIXUQLVKHGWKHKLVWRULFDOH[DPSOHRQZKLFKWKLVZKROH

VLWXDWLRQLVEDVHG3ULQFH&KLZDVDUHODWLYHRIWKHW\UDQWDQGFRXOGQRW

background image

ZLWKGUDZIURPWKHFRXUWWKHUHIRUHKHFRQFHDOHGKLVWUXHVHQWLPHQWVDQG

IHLJQHGLQVDQLW\$OWKRXJKKHZDVKHOGDVODYHKHGLGQRWDOORZH[WHUQDO

PLVHU\WRGHIOHFWKLPIURPKLVFRQYLFWLRQV

7KLVSURYLGHVDWHDFKLQJIRUWKRVHZKRFDQQRWOHDYHWKHLUSRVWVLQWLPHVRI

GDUNQHVV,QRUGHUWRHVFDSHGDQJHUWKH\QHHGLQYLQFLEOHSHUVHYHUDQFHRI

VSLULWDQGUHGRXEOHGFDXWLRQLQWKHLUGHDOLQJVZLWKWKHZRUOG

6L[DWWKHWRSPHDQV

1RWOLJKWEXWGDUNQHVV

)LUVWKHFOLPEHGXSWRKHDYHQ

7KHQSOXQJHGLQWRWKHGHSWKVRIWKHHDUWK

+HUHWKHFOLPD[RIWKHGDUNHQLQJLVUHDFKHG7KHGDUNSRZHUDWILUVWKHOGVR

KLJKDSODFHWKDWLWFRXOGZRXQGDOOZKRZHUHRQWKHVLGHRIJRRGDQGRIWKH

OLJKW%XWLQWKHHQGLWSHULVKHVRILWVRZQGDUNQHVVIRUHYLOPXVWLWVHOIIDOODW

WKHYHU\PRPHQWZKHQLWKDVZKROO\RYHUFRPHWKHJRRGDQGWKXV

FRQVXPHGWKHHQHUJ\WRZKLFKLWRZHGLWVGXUDWLRQ

LQGH[

&KLD-rQ7KH)DPLO\>7KH&ODQ@

DERYH6817+(*(17/(:,1'

EHORZ/,7+(&/,1*,1*),5(

7KHKH[DJUDPUHSUHVHQWVWKHODZVREWDLQLQJZLWKLQWKHIDPLO\7KHVWURQJ

OLQHDWWKHWRSUHSUHVHQWVWKHIDWKHUWKHORZHVWWKHVRQ7KHVWURQJOLQHLQWKH

ILIWKSODFHUHSUHVHQWVWKHKXVEDQGWKH\LHOGLQJVHFRQGOLQHWKHZLIH2QWKH

RWKHUKDQGWKHWRZVWURQJOLQHVLQWKHILIWKDQGWKHWKLUGSODFHUHSUHVHQWWZR

EURWKHUVDQGWKHWZRZHDNOLQHVFRUUHODWHGZLWKWKHPLQWKHIRXUWKDQGWKH

VHFRQGSODFHVWDQGIRUWKHLUUHVSHFWLYHZLYHV7KXVDOOWKHFRQQHFWLRQVDQG

UHODWLRQVKLSVZLWKLQWKHIDPLO\ILQGWKHLUDSSURSULDWHH[SUHVVLRQ(DFK

LQGLYLGXDOOLQHKDVWKHFKDUDFWHUDFFRUGLQJZLWKLWVSODFH7KHIDFWWKDWD

VWURQJOLQHRFFXSLHVWKHVL[WKSODFHZKHUHDZHDNOLQHPLJKWEHH[SHFWHG

LQGLFDWHVYHU\FOHDUO\WKHVWURQJOHDGHUVKLSWKDWPXVWFRPHIURPWKHKHDGRI

WKHIDPLO\7KHOLQHLVWREHFRQVLGHUHGKHUHQRWLQLWVTXDOLW\DVWKHVL[WKEXW

LQLWVTXDOLW\DVWKHWRSOLQH7+()$0,/<VKRZVWKHODZVRSHUDWLYHZLWKLQ

WKHKRXVHKROGWKDWWUDQVIHUUHGWRRXWVLGHOLIHNHHSWKHVWDWHDQGWKHZRUOGLQ

RUGHU7KHLQIOXHQFHWKDWJRHVRXWIURPZLWKLQWKHIDPLO\LVUHSUHVHQWHGE\

WKHV\PERORIWKHZLQGFUHDWHGE\ILUH

7+(-8'*0(17

7+()$0,/<7KHSHUVHYHUDQFHRIWKHZRPDQIXUWKHUV

7KHIRXQGDWLRQRIWKHIDPLO\LVWKHUHODWLRQVKLSEHWZHHQKXVEDQGDQGZLIH

7KHWLHWKDWKROGWKHIDPLO\WRJHWKHUOLHVLQWKHOR\DOW\DQGSHUVHYHUDQFHRI

background image

WKHZLIH7KHWLHWKDWKROGVWKHIDPLO\WRJHWKHUOLHVLQWKHOR\DOW\DQG

SHUVHYHUDQFHRIWKHZLIH+HUSODFHLVZLWKLQVHFRQGOLQHZKLOHWKDWRIWKH

KXVEDQGLVZLWKRXWILIWKOLQH,WLVLQDFFRUGZLWKWKHJUHDWODZVRIQDWXUH

WKDWKXVEDQGDQGZLIHWDNHWKHLUSURSHUSODFHV:LWKLQWKHIDPLO\DVWURQJ

DXWKRULW\LVQHHGHGWKLVLVUHSUHVHQWHGE\WKHSDUHQWV,IWKHIDWKHULVUHDOO\D

IDWKHUDQGWKHVRQDVRQLIWKHHOGHUEURWKHUIXOILOOVKLVSRVLWLRQDQGWKH

\RXQJHUIXOILOOVKLVLIWKHKXVEDQGLVUHDOO\DKXVEDQGDQGWKHZLIHDZLIH

WKHQWKHIDPLO\LVLQRUGHU:KHQWKHIDPLO\LVLQRUGHUDOOWKHVRFLDO

UHODWLRQVKLSVRIPDQNLQGZLOOEHLQRUGHU

7KUHHRIWKHILYHVRFLDOUHODWLRQVKLSVDUHWREHIRXQGZLWKLQWKHIDPLO\WKDW

EHWZHHQIDWKHUDQGVRQZKLFKLVWKHUHODWLRQRIORYHWKDWEHWZHHQWKH

KXVEDQGDQGZLIHZKLFKLVWKHUHODWLRQRIFKDVWHFRQGXFWDQGWKDWEHWZHHQ

HOGHUDQG\RXQJHUEURWKHUZKLFKLVWKHUHODWLRQRIFRUUHFWQHVV7KHORYLQJ

UHYHUHQFHRIWKHVRQLVWKHQFDUULHGRYHUWRWKHSULQFHLQWKHIRUPRI

IDLWKIXOQHVVWRGXW\WKHDIIHFWLRQDQGFRUUHFWQHVVRIEHKDYLRUH[LVWLQJ

EHWZHHQWKHWZREURWKHUVDUHH[WHQGHGWRDIULHQGLQWKHIRUPRIOR\DOW\DQG

WRDSHUVRQRIVXSHULRUUDQNLQWKHIRUPRIGHIHUHQFH7KHIDPLO\LVVRFLHW\LQ

WKHHPEU\RLWLVWKHQDWLYHVRLORQZKLFKSHUIRUPDQFHRIPRUDOGXW\LVPDGH

HDUO\WKURXJKQDWXUDODIIHFWLRQVRWKDWZLWKLQDVPDOOFLUFOHDEDVLVRIPRUDO

SUDFWLFHLVFUHDWHGDQGWKLVLVODWHUZLGHQHGWRLQFOXGHKXPDQUHODWLRQVKLSV

LQJHQHUDO

7+(,0$*(

:LQGFRPHVIRUWKIURPILUH

7KHLPDJHRI7+()$0,/<

7KXVWKHVXSHULRUPDQKDVVXEVWDQFHLQKLVZRUGV

$QGGXUDWLRQLQKLVZD\RIOLIH

+HDWFUHDWHVHQHUJ\WKLVLVVLJQLILHGE\WKHZLQGVWLUUHGXSE\WKHILUHDQG

LVVXLQJIRUWKIRUPLW7KLVUHSUHVHQWVLQIOXHQFHZRUNLQJIURPZLWKLQ

RXWZDUG7KHVDPHWKLQJLVQHHGHGLQWKHUHJXODWLRQRIWKHIDPLO\+HUHWRR

WKHLQIOXHQFHRQRWKHUVPXVWSURFHHGIRUPRQHVRZQSHUVRQ,QRUGHUWREH

FDSDEOHRISURGXFLQJVXFKDQLQIOXHQFHRQHVZRUGVPXVWKDYHSRZHUDQG

WKLVWKH\FDQKDYHRQO\LIWKH\DUHEDVHGRQVRPHWKLQJUHDOMXVWDVIODPH

GHSHQGVRQLWVIXHO:RUGVKDYHLQIOXHQFHRQO\ZKHQWKH\DUHSHUWLQHQWDQG

FOHDUO\UHODWHGWRGHILQLWHFLUFXPVWDQFHV*HQHUDOGLVFRXUVHVDQGDGPRQLWLRQV

KDYHQRHIIHFWZKDWVRHYHU)XUWKHUPRUHWKHZRUGVPXVWEHVXSSRUWHGE\

RQHVHQWLUHFRQGXFWMXVWDVWKHZLQGLVPDGHHIIHFWLYHE\DPLPSUHVVLRQRQ

RWKHUVWKDWWKH\FDQDGDSWDQGFRQIRUPWRLW,IZRUGVDQGFRQGXFWDUHQRWLQ

DFFRUGDQGFRQVLVWHQWWKH\ZLOOKDYHQRHIIHFW

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

)LUPVHFOXVLRQZLWKLQWKHIDPLO\

5HPRUVHGLVDSSHDUV

background image

7KHIDPLO\PXVWIRUPDZHOOGHILQHGXQLWZLWKLQZKLFKHDFKPHPEHUNQRZV

KLVSODFH)URPWKHEHJLQQLQJHDFKFKLOGPXVWEHDFFXVWRPHGWRILUPO\

HVWDEOLVKHGUXOHVRIRUGHUEHIRUHHYHULWVZLOOLVGLUHFWHGWRRWKHUWKLQJV,IZH

EHJLQWRRODWHWRHQIRUFHRUGHUZKHQWKHZLOORIWKHFKLOGKDVDOUHDG\EHHQ

RYHULQGXOJHGWKHZKLPVDQGSDVVLRQVJURZQVWURQJHUZLWKWKH\HDUVRIIHU

UHVLVWDQFHDQGJLYHFDXVHIRUUHPRUVH,IZHLQVLVWRQRUGHUIURPWKHRXWVHW

RFFDVLRQVIRUUHPRUVHPD\DULVHLQJHQHUDOVRFLDOOLIHWKHVHDUHXQDYRLGDEOH

EXWWKHUHPRUVHDOZD\VGLVDSSHDUVDJDLQDQGHYHU\WKLQJULJKWVLWVHOI)RU

WKHUHLVQRWKLQJHDVLO\DYRLGHGDQGPRUHGLIILFXOWWRFDUU\WKURXJKWKDQ

EUHDNLQJDFKLOGVZLOO

ƒ6L[LQWKHVHFRQGSODFHPHDQV

6KHVKRXOGQRWIROORZKHUZKLPV

6KHPXVWDWWHQGZLWKLQWRWKHIRRG

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHZLIHPXVWDOZD\VEHJXLGHGE\WKHZLOORIWKHPDVWHURIWKHKRXVHEHKH

IDWKHUKXVEDQGRUJURZQVRQ7KHUHZLWKRXWKDYLQJWRORRNIRUWKHPVKH

KDVJUHDWDQGLPSRUWDQWGXWLHV6KHPXVWDWWHQGWRWKHQRXULVKPHQWRIKHU

IDPLO\DQGWRWKHIRRGIRUWKHVDFULILFH,1WKLVZD\VKHEHFRPHVWKHFHQWHURI

WKHVRFLDODQGUHOLJLRXVOLIHRIWKHIDPLO\DQGKHUSHUVHYHUDQFHLQWKLV

SRVLWLRQEULQJVJRRGIRUWXQHWRWKHZKROHKRXVH

,QUHODWLRQWRJHQHUDOFRQGLWLRQVWKHFRXQVHOKHUHLVWRVHHNQRWKLQJE\

PHDQVRIIRUFHEXWTXLHWO\WRFRQILQHRQHVHOIWRWKHGXWLHVDWKDQG

1LQHLQWKHWKLUGSODFHPHDQV

:KHQWHPSHUVIODUHXSLQWKHIDPLO\

7RRJUHDWVHYHULW\EULQJVUHPRUVH

*RRGIRUWXQHQRQHWKHOHVV

:KHQZRPDQDQGFKLOHGDOO\DQGODXJK

,WOHDGVLQWKHHQGWRKXPLOLDWLRQ

,QWKHIDPLO\WKHSURSHUPHDQEHWZHHQVHYHULW\DQGLQGXOJHQFHRXJKWWR

SUHYDLO7RRJUHDWVHYHULW\WRZDUGRQHVRZQIOHVKDQGEORRGOHDGVWR

UHPRUVH7KHZLVHWKLQJLVWREXLOGVWURQJGLNHVZLWKLQZKLFKFRPSOHWH

IUHHGRPRIPRYHPHQWLVDOORZHGHDFKLQGLYLGXDO%XWLQGRXEWIXOLQVWDQFHV

WRRJUHDWVHYHULW\GHVSLWHRFFDVLRQDOPLVWDNHVLVSUHIHUDEOHEHFDXVHLW

SUHVHUYHVGLVFLSOLQHLQWKHIDPLO\ZKHUHDVWRRJUHDWZHDNQHVVOHDGVWR

GLVJUDFH

6L[LQWKHIRXUWKSODFHPHDQV

6KHLVWKHWUHDVXUHRIWKHKRXVH

*UHDWJRRGIRUWXQH

,WLVXSRQWKHZRPDQRIWKHKRXVHWKDWWKHZHOOEHLQJRIWKHIDPLO\GHSHQGV

:HOOEHLQJSUHYDLOVZKHQH[SHQGLWXUHVDQGLQFRPHDUHVRXQGO\EDODQFHG

7KLVOHDGVWRJUHDWJRRGIRUWXQH,QWKHVSKHUHRISXEOLFOLIHWKLVOLQHUHIHUVWR

WKHIDLWKIXOVWHZDUGZKRVHPHDVXUHVIXUWKHUWKHJHQHUDOZHOIDUH

background image

ƒ1LQHLQWKHILIWKSODFHPHDQV

$VDNLQJKHDSSURDFKHVKLVIDPLO\

)HDUQRW

*RRGIRUWXQH

$NLQJLVWKHV\PERORIDIDWKHUO\PDQZKRLVULFKO\HQGRZHGLQPLQG+H

GRHVQRWKLQJWRPDNHKLPVHOIIHDUHGRQWKHFRQWUDU\WKHZKROHIDPLO\FDQ

WUXVWKLPEHFDXVHORYHJRYHUQVWKHLULQWHUFRXUVH+LVFKDUDFWHURILWVHOI

H[HUFLVHVWKHULJKWLQIOXHQFH

1LQHDWWKHWRSPHDQV

+LVZRUNFRPPDQGVUHVSHFW

,QWKHHQGJRRGIRUWXQHFRPHV

,QWKHODVWDQDO\VLVRUGHUZLWKLQWKHIDPLO\GHSHQGVRQWKHFKDUDFWHURIWKH

PDVWHURIWKHKRXVH,IKHFXOWLYDWHVKLVSHUVRQDOLW\VRWKDWLWZRUNV

LPSUHVVLYHO\WKURXJKWKHIRUFHRILQQHUWUXWKDOOJRHVZHOOZLWKWKHIDPLO\

,QDUXOLQJSRVLWLRQRQHPXVWRIKLVRZQDFFRUGDVVXPHUHVSRQVLELOLW\

LQGH[

.XHL2SSRVLWLRQ

DERYH/,7+(&/,1*,1*)/$0(

EHORZ78,7+(-2<286/$.(

7KLVKH[DJUDPLVFRPSRVHGRIWKHWULJUDP/LDERYHLHIODPHZKLFKEXUQV

XSZDUGDQG7XLEHORZLHWKHODNHZKLFKVHHSVGRZQZDUG7KHVHWRZ

PRYHPHQWVDUHLQGLUHFWFRQWUDVW)XUWKHUPRUH/,LVWKHVHFRQGGDXJKWHUDQG

7XLWKH\RXQJHVWGDXJKWHUDQGDOWKRXJKWKH\OLYHLQWKHVDPHKRXVHWKH\

EHORQJWRGLIIHUHQWPHQKHQFHWKHLUZLOOVDUHQRWWKHVDPHEXWDUH

GLYHUJHQWO\GLUHFWHG

7+(-8'*0(17

23326,7,21,QVPDOOPDWWHUVJRRGIRUWXQH

:KHQSHRSOHOLYHLQRSSRVLWLRQDQGHVWUDQJHPHQWWKH\FDQQRWFDUU\RXWD

JUHDWXQGHUWDNLQJLQFRPPRQWKHLUSRLQWVRIYLHZGLYHUJHWRRZLGHO\,Q

VXFKFLUFXPVWDQFHVRQHVKRXOGDERYHDOOQRWSURFHHGEUXVTXHO\IRUWKDW

ZRXOGRQO\LQFUHDVHWKHH[LVWLQJRSSRVLWLRQLQVWHDGRQHVKRXOGOLPLWRQHVHOI

WRSURGXFLQJJUDGXDOHIIHFWVLQVPDOOPDWWHUV+HUHVXFFHVVFDQVWLOOEH

H[SHFWHGEHFDXVHWKHVLWXDWLRQLVVXFKWKDWWKHRSSRVLWLRQGRHVQRWSUHFOXGH

DOODJUHHPHQW

,QJHQHUDORSSRVLWLRQDSSHDUVDVDQREVWUXFWLRQEXWZKHQLWUHSUHVHQWV

SRODULW\ZLWKLQDFRPSUHKHQVLYHZKROHLWKDVDOVRLWVXVHIXODQGLPSRUWDQW

background image

IXQFWLRQV7KHRSSRVLWLRQVRIKHDYHQDQGHDUWKVSLULWDQGQDWXUHPDQDQG

ZRPDQZKHQUHFRQFLOHGEULQJDERXWWKHFUHDWLRQDQGUHSURGXFWLRQRIOLIH

,QWKHZRUOGRIYLVLEOHWKLQJVWKHSULQFLSOHRIRSSRVLWHVPDNHVSRVVLEOHWKH

GLIIHUHQWLDWLRQE\FDWHJRULHVWKURXJKZKLFKRUGHULVEURXJKWLQWRWKHZRUOG

7+(,0$*(

$ERYHILUHEHORZ7KHODNH

7KHLPDJHRI23326,7,21

7KXVDPLGDOOIHOORZVKLS

7KHVXSHULRUPDQUHWDLQVKLVLQGLYLGXDOLW\

7KHWZRHOHPHQWVILUHDQGZDWHUQHYHUPLQJOHEXWHYHQZKHQLQFRQWDFW

UHWDLQWKHLURZQQDWXUHV6RWKHVXWXUHGPDQLVQHYHUOHGLQWREDVHQHVVRU

YXOJDULW\WKURXJKLQWHUFRXUVHRUFRPPXQLW\RILQWHUHVWVZLWKSHUVRQVRI

DQRWKHUVRUWUHJDUGOHVVRIDOOFRPPLQJOLQJKHZLOODOZD\VSUHVHUYHKLV

LQGLYLGXDOLW\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

5HPRUVHGLVDSSHDUV

,I\RXORVH\RXUKRUVHGRQRWUXQDIWHULW

,WZLOOFRPHEDFNRILWVRZQDFFRUG

:KHQ\RXVHHHYLOSHRSOH

*XDUG\RXUVHOIDJDLQVWPLVWDNHV

(YHQLQWLPHVZKHQRSSRVLWLRQVSUHYDLOPLVWDNHVFDQEHDYRLGHGVRWKDW

UHPRUVHGLVDSSHDUV:KHQRSSRVLWLRQEHJLQVWRPDQLIHVWLWVHOIDPDQPXVW

QRWWU\WREULQJDERXWXQLW\E\IRUFHIRUE\VRGRLQJKHZRXOGRQO\DFKLHYH

WKHFRQWUDU\MXVWDVDKRUVHJRHVIDUWKHUDQGIDUWKHUDZD\LIRQHUXQVDIWHULW

,WLWLVRQHVZRQKRUVHRQHFDQVDIHO\OHWLWJRLWZLOOFRPHEDFNRILWVRZQ

DFFRUG6RWRRZKHQVRPHRQHZKREHORQJVZLWKXVLVPRPHQWDULO\HVWUDQJHG

EHFDXVHRIDPLVXQGHUVWDQGLQJKHZLOOUHWXUQRIKLVRZQDFFRUGLIZHOHDYH

PDWWHUVWRKLP2QHWKHRWKHUKDQGLWLVZHOOWREHFDXWLRXVZKHQHYLOPHQ

ZKRGRQRWEHORQJZLWKXVIRUFHWKHPVHOYHVXSRQXVDJDLQDVWKHUHVXOWRID

PLVXQGHUVWDQGLQJ+HUHWKHLPSRUWDQWWKLQJLVWRDYRLGPLVWDNHV:HPXVW

QRWWU\WRVKDNHRIIWKHVHHYLOPHQE\IRUFHWKLVZRXOGJLYHULVHWRUHDO

KRVWLOLW\:HPXVWVLPSO\HQGXUHWKHP7KH\ZLOOHYHQWXDOO\ZLWKGUDZRI

WKHLURZQDFFRUG

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

2QHPHHWVKLVORUGLQDQDUURZVWUHHW

1REODPH

$VDUHVXOWRIPLVXQGHUVWDQGLQJVLWKDVEHFRPHLPSRVVLEOHIRUSHRSOHZKRE\

QDWXUHEHORQJWRJHWKHUWRPHHWLQWKHFRUUHFWZD\7KLVEHLQJVRDQ

DFFLGHQWDO

background image

PHHWLQJXQGHULQIRUPDOFLUFXPVWDQFHVPD\VHUYHWKHSXUSRVHSURYLGHG

WKHUHLVDQLQQHUDIILQLW\EHWZHHQWKHP

6L[LQWKHWKLUGSODFHPHDQV

2QHVHHVWKHZDJRQGUDJJHGEDFN

7KHR[HQKDOWHG

$PDQVKDLUDQGQRVHFXWRII

1RWDJRRGEHJLQQLQJEXWDJRRGHQG

2IWHQLWVHHPVWRWDPDQDVWKRXJKHYHU\WKLQJZHUHFRQVSLULQJDJDLQVWKLP

+HVHHVKLPVHOIFKHFNHGDQGKLQGHUHGLQKLVSURJUHVVLQVXOWHGDQG

GLVKRQRUHG+RZHYHUKHPXVWQRWOHWKLPVHOIEHPLVOHGGHVSLWHWKLV

RSSRVLWLRQKHPXVWFOHDYHWRWKHPDQZLWKZKRPKHNQRZVKHEHORQJV

7KXVQRWZLWKVWDQGLQJWKHEDGEHJLQQLQJWKHPDWWHUZLOOHQGZHOO

1LQHLQWKHIRXUWKSODFHPHDQV

,VRODWHGWKURXJKRSSRVLWLRQ

2QHPHHWVDOLNHPLQGHGPDQ

:LWKZKRPRQHFDQDVVRFLDWHLQJRRGIDLWK

'HVSLWHWKHGDQJHUQREODPH

,IDPDQILQGVKLPVHOILQDFRPSDQ\RISHRSOHIURPZKRPKHLVVHSDUDWHGE\

DQLQQHURSSRVLWLRQKHEHFRPHVLVRODWHG%XWLILQVXFKDVLWXDWLRQDPDQ

PHHWVVRPHRQHZKRIXQGDPHQWDOO\E\WKHYHU\ODZRIKLVEHLQJLVNLQWR

KLPDQGZKRPKHFDQWUXVWFRPSOHWHO\KHRYHUFRPHVDOOWKHGDQJHUVRI

LVRODWLRQ+LVZLOODFKLHYHVLWVDLPDQGKHEHFRPHVIUHHRIIDXOWV

ƒ6L[LQWKHILIWKSODFHPHDQV

5HPRUVHGLVDSSHDUV

7KHFRPSDQLRQELWVKLVZD\WKURXJKWKHZUDSSLQJV

,IRQHJRHVWRKLP

+RZFRXOGLWEHDPLVWDNH"

&RPLQJXSRQDVLQFHUHPDQRQHIDLOVWRUHFRJQL]HKLPDWILUVWEHFDXVHRIWKH

JHQHUDOHVWUDQJHPHQW+RZHYHUKHELWHVKLVZD\WKURXJKWKHZUDSSLQJVWKDW

DUHFDXVLQJWKHVHSDUDWLRQ:KHQVXFKDFRPSDQLRQWKXVUHYHDOVKLPVHOILQ

KLVWUXHFKDUDFWHULWLVRQHVGXW\WRJRWRPHHWKLPDQGWRZRUNZLWKKLP

1LQHDWWKHWRSPHDQV

,VRODWHGWKURXJKRSSRVLWLRQ

2QHVHHVRQHVFRPSDQLRQDVDSLJFRYHUHGZLWKGLUW

$VDZDJRQIXOORIGHYLOV

)LUVWRQHGUDZVDERZDJDLQVWKLP

WKHQRQHOD\VWKHERZDVLGH

+HLVQRWDUREEHUKHZLOOZRRDWWKHULJKWWLPH

$VRQHJRHVUDLQIDOOVWKHQJRRGIRUWXQHFRPHV

+HUHWKHLVRODWLRQLVGXHWRPLVXQGHUVWDQGLQJLWLVEURXJKWDERXWQRWE\

background image

RXWHUFLUFXPVWDQFHVEXWE\LQQHUFRQGLWLRQV$PDQPLVMXGJHVKLVEHVW

IULHQGVWDNLQJWKHPWREHDVXQFOHDQDVDGLUW\SLJLQDQGDVGDQJHURXVDVD

ZDJRQIXOORIGHYLOV+HDGRSWVDQDWWLWXGHRIGHIHQVH%XWLQWKHHQG

UHDOL]LQJKLVPLVWDNHKHOD\VDVLGHWKHERZSHUFHLYLQJWKDWWKHRWKHULV

DSSURDFKLQJZLWKWKHEHVWLQWHQWLRQVIRUWKHSXUSRVHRIFORVHXQLRQ7KXVWKH

WHQVLRQLVUHOLHYHG7KHXQLRQUHVROYHVWKHWHQVLRQMXVWDVIDOOLQJUDLQ

UHOLHYHVWKHVXOWULQHVVSUHFHGLQJDWKXQGHUVWRUP$OOJRHVZHOOIRUMXVWZKHQ

RSSRVLWLRQUHDFKHVLWVFOLPD[LWFKDQJHVRYHUWRLWVDQWLWKHVLV

LQGH[

&KLHQ2EVWUXFWLRQ

DERYH.$17+($%<60$/:$7(5

EHORZ.r1.((3,1*67,//02817$,1

7KHKH[DJUDPSLFWXUHVDGDQJHURXVDE\VVO\LQJEHIRUHXVDQGDVWHHS

LQDFFHVVLEOHPRXQWDLQULVLQJEHKLQGXV:HDUHVXUURXQGHGE\REVWDFOHVDW

WKHVDPHWLPHVLQFHWKHPRXQWDLQKDVWKHDWWULEXWHRINHHSLQJVWLOOWKHUHLV

LPSOLFLWDKLQWDVWRKRZZHFDQH[WULFDWHRXUVHOYHV7KHKH[DJUDPUHSUHVHQWV

REVWUXFWLRQVWKDWDSSHDULQWKHFRXUVHRIWLPHEXWWKDWFDQDQGVKRXOGEH

RYHUFRPH7KHUHIRUHDOOWKHLQVWUXFWLRQJLYHQLVGLUHFWHGWRRYHUFRPLQJ

WKHP

7+(-8'*0(17

2%6758&7,217KHVRXWKZHVWIXUWKHUV

7KHQRUWKHDVWGRHVQRWIXUWKHU

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHVRXWKZHVWLVWKHUHJLRQRIUHWUHDWWKHQRUWKHDVWWKDWRIDGYDQFH+HUHDQ

LQGLYLGXDOLVFRQIURQWHGE\REVWDFOHVWKDWFDQQRWEHRYHUFRPHGLUHFWO\,Q

VXFKDVLWXDWLRQLWLVZLVHWRSDXVHLQYLHZRIWKHGDQJHUDQGWRUHWUHDW

+RZHYHUWKLVLVPHUHO\DSUHSDUDWLRQIRURYHUFRPLQJWKHREVWUXFWLRQV2QH

PXVWMRLQIRUFHVZLWKIULHQGVRIOLNHPLQGDQGSXWKLPVHOIXQGHUWKH

OHDGHUVKLSRIDPDQHTXDOWRWKHVLWXDWLRQWKHQRQHZLOOVXFFHHGLQ

UHPRYLQJWKHREVWDFOHV7KLVUHTXLUHVWKHZLOOWRSHUVHYHUHMXVWZKHQRQH

DSSDUHQWO\PXVWGRVRPHWKLQJWKDWOHDGVDZD\IURPKLVJRDO7KLV

XQVZHUYLQJLQQHUSXUSRVHEULQJVJRRGIRUWXQHLQWKHHQG$QREVWUXFWLRQ

WKDWODVWVRQO\IRUDWLPHLVXVHIXOIRUVHOIGHYHORSPHQW7KLVLVWKHYDOXHRI

DGYHUVLW\

7+(,0$*(

:DWHURQWKHPRXQWDLQ

7KHLPDJHRI2%6758&7,21

background image

7KXVWKHVXSHULRUPDQWXUQVKLVDWWHQWLRQWRKLPVHOI

$QGPROGVKLVFKDUDFWHU

'LIILFXOWLHVDQGREVWUXFWLRQVWKURZDPDQEDFNXSRQKLPVHOI:KLOHWKH

LQIHULRUPDQVHHNVWRSXWWKHEODPHRQRWKHUSHUVRQVEHZDLOLQJKLVIDWHWKH

VXSHULRUPDQVHHNVWKHHUURUZLWKLQKLPVHOIDQGWKURXJKWKLVLQWURVSHFWLRQ

WKHH[WHUQDOREVWDFOHEHFRPHVIRUKLPDQRFFDVLRQIRULQQHUHQULFKPHQWDQG

HGXFDWLRQ

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

*RLQJOHDGVWRREVWUXFWLRQV

&RPLQJPHHWVZLWKSUDLVH

:KHQRQHHQFRXQWHUVDQREVWUXFWLRQWKHLPSRUWDQWWKLQJLVWRUHIOHFWRQ

KRZEHVWWRGHDOZLWKLW:KHQWKUHDWHQHGZLWKGDQJHURQHVKRXOGQRWVWULYH

EOLQGO\WRJRDKHDGIRUWKLVRQO\OHDGVWRFRPSOLFDWLRQV7KHFRUUHFWWKLQJLV

RQWKHFRQWUDU\WRUHWUHDWIRUWKHWLPHEHLQJQRWLQRUGHUWRJLYHXSWKH

VWUXJJOHEXWWRDZDLWWKHULJKWPRPHQWIRUDFWLRQ

6L[LQWKHVHFRQGSODFHPHDQV

7KH.LQJVVHUYDQWLVEHVHWE\REVWUXFWLRQXSRQREVWUXFWLRQ

%XWLWLVQRWKLVRZQIDXOW

2UGLQDULO\LWLVEHVWWRJRDURXQGDQREVWDFOHDQGWU\WRRYHUFRPHLWDORQJWKH

OLQHRIOHDVWUHVLVWDQFH%XWWKHUHLVRQHLQVWDQFHLQZKLFKDPDQPXVWJRRXW

WRPHHWWKHWURXEOHHYHQWKRXJKGLIILFXOW\SLOHVXSRQGLIILFXOW\WKLVLVZKHQ

WKHSDWKRIGXW\OHDGVGLUHFWO\WRLWLQRWKHUZRUGVZKHQKHFDQQRWDFWRIKLV

RZQYROLWLRQEXWLVGXW\ERXQGWRJRDQGVHHNRXWGDQJHULQWKHVHUYLFHRID

KLJKHUFDXVH7KHQKHPD\GRLWZLWKRXWFRPSXQFWLRQEHFDXVHLWLVQRW

WKURXJKDQ\IDXOWRIKLVWKDWKHLVSXWWLQJKLPVHOILQWKLVGLIILFXOWVLWXDWLRQ

1LQHLQWKHWKLUGSODFHPHDQV

*RLQJOHDGVWRREVWUXFWLRQV

+HQFHKHFRPHVEDFN

:KLOHWKHSUHFHGLQJOLQHVKRZVWKHRIILFLDOFRPSHOOHGE\GXW\WRIROORZWKH

ZD\RIGDQJHUWKLVOLQHVKRZVWKHPDQZKRPXVWDFWDVIDWKHURIDIDPLO\RU

DVKHDGRIKLVNLQ,IKHZHUHWRSOXQJHUHFNOHVVO\LQWRGDQJHULWZRXOGEHD

XVHOHVVDFWEHFDXVHWKRVHHQWUXVWHGWRKLVFDUHFDQQRWJHWDORQJE\

WKHPVHOYHV

%XWLIKHZLWKGUDZVDQGWXUQVEDFNWRKLVRZQWKH\ZHOFRPHKLPZLWKJUHDW

MR\

6L[LQWKHIRXUWKSODFHPHDQV

*RLQJOHDGVWRREVWUXFWLRQV

&RPLQJOHDGVWRXQLRQ

background image

7KLVWRRGHVFULEHVDVLWXDWLRQWKDWFDQQRWEHPDQDJHGVLQJOHKDQGHG,QVXFK

DFDVHWKHGLUHFWZD\LVQRWWKHVKRUWHVW,IDSHUVRQZHUHWRIRUJHDKHDGRQKLV

RZQVWUHQJWKDQGZLWKRXWWKHQHFHVVDU\SUHSDUDWLRQVKHZRXOGQRWILQGWKH

VXSSRUWKHQHHGVDQGZRXOGUHDOL]HWRRODWHWKDWKHKDVEHHQPLVWDNHQLQKLV

FDOFXODWLRQVLQDVPXFKDVWKHFRQGLWLRQVRQZKLFKKHKRSHGKHFRXOGUHO\

ZRXOGSURYHWREHLQDGHTXDWH,QWKLVFDVHLWLVEHWWHUWKHUHIRUHWRKROGEDFN

IRUWKHWLPHEHLQJDQGWRJDWKHUWRJHWKHUWUXVWZRUWK\FRPSDQLRQVZKRFDQEH

FRXQWHGXSRQIRUKHOSLQRYHUFRPLQJWKHREVWUXFWLRQV

ƒ1LQHLQWKHILIWKSODFHPHDQV

,QWKHPLGVWRIWKHJUHDWHVWREVWUXFWLRQV

)ULHQGVFRPH

+HUHZHVHHDPDQZKRLVFDOOHGWRKHOSLQDQHPHUJHQF\+HVKRXOGQRWVHHN

WRHYDGHWKHREVWUXFWLRQVQRPDWWHUKRZGDQJHURXVO\WKH\SLOHXSEHIRUH

KLP%XWEHFDXVHKHLVUHDOO\FDOOHGWRWKHWDVNWKHSRZHURIKLVVSLULWLVVWURQJ

HQRXJKWRDWWUDFWKHOSHUVZKRPKHFDQHIIHFWLYHO\RUJDQL]HVRWKDWWKURXJK

WKHZHOOGLUHFWHGFRRSHUDWLRQRIDOOSDUWLFLSDQWVWKHREVWUXFWLRQLVRYHUFRPH

6L[DWWKHWRSPHDQV

*RLQJOHDGVWRREVWUXFWLRQV

&RPLQJOHDGVWRJUHDWJRRGIRUWXQH

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

7KLVUHIHUVWRDPDQZKRKDVDOUHDG\OHIWWKHZRUOGDQGLWVWXPXOWEHKLQG

KLP:KHQWKHWLPHRIREVWUXFWLRQVDUULYHVLWPLJKWVHHPWKDWWKHVLPSOHVW

WKLQJIRUKLPWRGRZRXOGEHWRWXUQKLVEDFNXSRQWKHZRUOGDQGWDNHUHIXJH

LQWKHEH\RQG%XWWKLVURDGLVEDUUHGWRKLP+HPXVWQRWVHHNKLVRZQ

VDOYDWLRQDQGDEDQGRQWKHZRUOGWRLWVDGYHUVLW\'XW\FDOOVKLPEDFNRQFH

PRUHLQWRWKHWXUPRLORIOLIH3UHFLVHO\EHFDXVHRIKLVH[SHULHQFHDQGLQQHU

IUHHGRPKHLVDEOHWRFUHDWHVRPHWKLQJERWKJUHDWDQGFRPSOHWHWKDWEULQJV

JRRGIRUWXQH$QGLWLVIDYRUDEOHWRVHHWKHJUHDWPDQLQDOOLDQFHZLWKZKRP

RQHFDQDFKLHYHWKHZRUNRIUHVFXH

LQGH[

+VLHK'HOLYHUDQFH

DERYH&+r17+($5286,1*7+81'(5

EHORZ.$17+($%<60$/:$7(5

+HUHWKHPRYHPHQWJRHVRXWRIWKHVSKHUHRIGDQJHU7KHREVWDFOHKDVEHHQ

UHPRYHGWKHGLIILFXOWLHVDUHEHLQJUHVROYHG'HOLYHUDQFHLVQRW\HWDFKLHYHG

LWLVMXVWLQLWVEHJLQQLQJDQGWKHKH[DJUDPUHSUHVHQWVLWVYDULRXVVWDJHV

7+(-8'*0(17

background image

'(/,9(5$1&(7KHVRXWKZHVWIXUWKHUV

,IWKHUHLVQRORQJHUDQ\WKLQJZKHUHRQHKDVWRJR

5HWXUQEULQJVJRRGIRUWXQH

,IWKHUHLVVWLOOVRPHWKLQJZKHUHRQHKDVWRJR

+DVWHQLQJEULQJVJRRGIRUWXQH

7KLVUHIHUVWRDWLPHLQZKLFKWHQVLRQVDQGFRPSOLFDWLRQVEHJLQWREHHDVHG

$WVXFKWLPHVZHRXJKWWRPDNHRXUZD\EDFNWRRUGLQDU\FRQGLWLRQVDVVRRQ

DVSRVVLEOHWKLVLVWKHPHDQLQJRIWKHVRXWKZHVW7KHVHSHULRGVRIVXGGHQ

FKDQJHKDYHJUHDWLPSRUWDQFH-XVWDVUDLQUHOLHYHVDWPRVSKHULFWHQVLRQ

PDNLQJDOOWKHEXGVEXUVWRSHQVRDWLPHRIGHOLYHUDQFHIURPEXUGHQVRPH

SUHVVXUHKDVDOLEHUDWLQJDQGVWLPXODWLQJHIIHFWRQOLIH2QHWKLQJLV

LPSRUWDQWKRZHYHULQVXFKWLPHVZHPXVWQRWRYHUGRRXUWULXPSK7KH

SRLQWLVQRWWRSXVKRQIDUWKHUWKDQLVQHFHVVDU\5HWXUQLQJWRWKHUHJXODU

RUGHURIOLIHDVVRRQDVGHOLYHUDQFHLVDFKLHYHGEULQJVJRRGIRUWXQH,IWKHUH

DUHDQ\UHVLGXDOPDWWHUVWKDWRXJKWWREHDWWHQGHGWRLWVKRXOGEHGRQHDV

TXLFNO\DVSRVVLEOHVRWKDWDFOHDQVZHHSLVPDGHDQGQRUHWDUGDWLRQVRFFXU

7+(,0$*(

7KXQGHUDQGUDLQVHWLQ

7KHLPDJHRI'(/,9(5$1&(

7KXVWKHVXSHULRUPDQSDUGRQVPLVWDNHV

$QGIRUJLYHVPLVGHHGV

$WKXQGHUVWRUPKDVWKHHIIHFWRIFOHDULQJWKHDLUWKHVXSHULRUPDQSURGXFHV

DVLPLODUHIIHFWZKHQGHDOLQJZLWKPLVWDNHVDQGVLQVRIPHQWKDWLQGXFHD

FRQGLWLRQRIWHQVLRQ7KURXJKFODULW\KHEULQJVGHOLYHUDQFH+RZHYHUZKHQ

IDLOLQJVFRPHWROLJKWKHGRHVQRWGZHOORQWKHPKHVLPSO\SDVVHVRYHU

PLVWDNHVWKHXQLQWHQWLRQDOWUDQVJUHVVLRQVMXVWDVWKXQGHUGLHVDZD\+H

IRUJLYHVPLVGHHGVWKHLQWHQWLRQDOWUDQVJUHVVLRQVMXVWDVZDWHUZDVKHV

HYHU\WKLQJFOHDQ

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

:LWKRXWEODPH

,QNHHSLQJZLWKWKHVLWXDWLRQIHZZRUGVDUHQHHGHG7KHKLQGUDQFHLVSDVW

GHOLYHUDQFHKDVFRPH2QHUHFXSHUDWHVLQSHDFHDQGNHHSVVWLOO7KLVLVWKH

ULJKWWKLQJWRGRLQWLPHVZKHQGLIILFXOWLHVKDYHEHHQRYHUFRPH

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

2QHNLOOVWKUHHIR[HVLQWKHILHOG

$QGUHFHLYHVD\HOORZDUURZ

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

background image

7KHLPDJHLVWDNHQIURPWKHKXQW7KHKXQWHUFDWFKHVWKUHHFXQQLQJIR[HV

DQGUHFHLYHVD\HOORZDUURZDVDUHZDUG7KHREVWDFOHVLQSXEOLFOLIHDUHWKH

GHVLJQLQJIR[HVZKRWU\WRLQIOXHQFHWKHUXOHUWKURXJKIODWWHU\7KH\PXVWEH

UHPRYHGEHIRUHWKHUHFDQEHDQ\GHOLYHUDQFH%XWWKHVWUXJJOHPXVWQRWEH

FDUULHGRQZLWKWKHZURQJZHDSRQV7KH\HOORZFRORUSRLQWVWRPHDVXUHDQG

PHDQLQSURFHHGLQJDJDLQVWWKHHQHP\WKHDUURZVLJQLILHVWKHVWUDLJKWFRXUVH

,IRQHGHYRWHVKLPVHOIZKROHKHDUWHGO\WRWKHWDVNRIGHOLYHUDQFHKHGHYHORSV

VRPXFKLQQHUVWUHQJWKIURPKLVUHFWLWXGHWKDWLWDFWVDVDZHDSRQDJDLQVWDOO

WKDWLVIDOVHDQGORZ

6L[LQWKHWKLUGSODFHPHDQV

,IDPDQFDUULHVDEXUGHQRQKLVEDFN

$QGQRQHWKHOHVVULGHVLQDFDUULDJH

+HWKHUHE\HQFRXUDJHVUREEHUVWRGUDZQHDU

3HUVHYHUDQFHOHDGVWRKXPLOLDWLRQ

7KLVUHIHUVWRDPDQZKRKDVFRPHRXWRIQHHG\FLUFXPVWDQFHVLQWRFRPIRUW

DQGIUHHGRPIURPZDQW,IQRZLQWKHPDQQHURIDQXSVWDUWKHWULHVWRWDNH

KLVHDVHLQFRPIRUWDEOHVXUURXQGLQJVWKDWGRQRWVXLWKLVQDWXUHKHWKHUHE\

DWWUDFWVUREEHUV,IKHJRHVRQWKXVKHLVVXUHWREULQJGLVJUDFHXSRQKLPVHOI

&RQIXFLXVVD\VDERXWWKLVOLQH

&DUU\LQJDEXUGHQRQWKHEDFNLVWKHEXVLQHVVRIFRPPRQPDQDFDUULDJHLV

WKHDSSXUWHQDQFHRIDPDQRIUDQN1RZZKHQDFRPPRQPDQXVHVWKH

DSSXUWHQDQFHRIPDQRIUDQNUREEHUVSORWWRWDNHLWDZD\IURPKLP,IDPDQ

LVLQVROHQWWRZDUGWKRVHDERYHKLPDQGKDUGWRZDUGWKRVHEHORZKLP

UREEHUVSORWWRDWWDFNKLP&DUHOHVVQHVVLQJXDUGLQJWKLQJVWHPSWVWKLHYHVWR

VWHDO6XPSWXRXVRUQDPHQWVZRUQE\DPDLGHQDUHDQHQWLFHPHQWWRUREKHU

RIKHUYLUWXH

1LQHLQWKHIRXUWKSODFHPHDQV

'HOLYHU\RXUVHOIIURP\RXUJUHDWWRH

7KHQWKHFRPSDQLRQFRPHV

$QGKLP\RXFDQWUXVW

,QWLPHVRIVWDQGVWLOOLWZLOOKDSSHQWKDWLQIHULRUSHRSOHDWWDFKWKHPVHOYHVWRD

VXSHULRUPDQDQGWKURXJKIRUFHRIGDLO\KDELWWKH\PD\JURZYHU\FORVHWR

KLPDQGEHFRPHLQGLVSHQVDEOHMXVWDVWKHELJWRHLVLQGLVSHQVDEOHWRWKHIRRW

EHFDXVHLWPDNHVZDONLQJHDVLHU%XWZKHQWKHWLPHRIGHOLYHUDQFHGUDZV

QHDUZLWKLWVFDOOWRGHHGVDPDQPXVWIUHHKLPVHOIIURPVXFKFKDQFH

DFTXDLQWDQFHVZLWKZKLPKHKDVQRLQQHUFRQQHFWLRQ)RURWKHUZLVHWKH

IULHQGVZKRVKDUHKLVYLHZVRQZKRPKHFRXOGUHDOO\UHO\DQGWRJHWKHUZLWK

ZKRPKHFRXOGDFFRPSOLVKVRPHWKLQJPLVWUXVWKLPDQGVWD\DZD\

ƒ6L[LQWKHILIWKSODFHPHDQV

,IRQO\WKHVXSHULRUPDQFDQGHOLYHUKLPVHOI

,WEULQJVJRRGIRUWXQH

7KXVKHSURYHVWRLQIHULRUPHQWKDWKHLVLQHDUQHVW

background image

7LPHVRIGHOLYHUDQFHGHPDQGLQQHUUHVROYH,QIHULRUSHRSOHFDQQRWEH

GULYHQRIIE\SURKLELWLRQVRUDQ\H[WHUQDOPHDQV,IRQHGHVLUHVWREHULGRI

WKHPKHPXVWILUVWEUHDNFRPSOHWHO\ZLWKWKHPLQKLVRZQPLQGWKH\ZLOO

VHHIRUWKHPVHOYHVWKDWKHLVLQHDUQHVWDQGZLOOZLWKGUDZ

6L[DWWKHWRSPHDQV

7KHSULQFHVKRRWVDWDKDZNRQDKLJKZDOO

+HNLOOVLW(YHU\WKLQJVHUYHVWRIXUWKHU

7KHKDZNRQDKLJKZDOOLVWKHV\PERORIDSRZHUIXOLQIHULRULQDKLJK

SRVLWLRQZKRLVKLQGHULQJWKHGHOLYHUDQFH+HZLWKVWDQGVWKHIRUFHRILQQHU

LQIOXHQFHVEHFDXVHKHLVKDUGHQHGLQKLVZLFNHGQHVV+HPXVWEHIRUFLEO\

UHPRYHGDQGWKLVUHTXLUHVDSSURSULDWHPHDQV&RQIXFLXVVD\VDERXWWKLV

OLQH

7KHKDZNLVWKHREMHFWRIWKHKXQWERZDQGDUURZDUHWKHWRROVDQGPHDQV

7KHPDUNVPDQLVPDQZKRPXVWPDNHSURSHUXVHRIWKHPHDQVWRKLVHQG

7KHVXSHULRUPDQFRQWDLQVWKHPHDQVLQKLVRZQSHUVRQ+HELGHVKLVWLPH

DQGWKHQDFWV:K\WKHQVKRXOGQRWHYHU\WKLQJJRZHOO"+HDFWVDQGLVIUHH

7KHUHIRUHDOOKHKDVWRGRLVWRJRIRUWKDQGKHWDNHVKLVTXDUU\7KLVLVKRZ

D

PDQIDUHVZKRDFWVDIWHUKHKDVPDGHUHDG\WKHPHDQV

LQGH[

6XQ'HFUHDVH

DERYH.r1.((3,1*67,//02817$,1

EHORZ78,7+(-2<286/$.(

7KLVKH[DJUDPUHSUHVHQWVDGHFUHDVHRIWKHORZHUWULJUDPLQIDYRURIWKH

XSSHUEHFDXVHWKHWKLUGOLQHRULJLQDOO\VWURQJKDVPRYHGXSWRWKHWRSDQG

WKHWRSOLQHRULJLQDOO\ZHDNKDVUHSODFHGLW:KDWLVEHORZLVGHFUHDVHGWR

WKHEHQHILWRIZKDWLVDERYH7KLVLVRXWDQGRXWGHFUHDVH,IWKHIRXQGDWLRQV

RIDEXLOGLQJDUHGHFUHDVHGLQVWUHQJWKDQGWKHXSSHUZDOOVDUHVWUHQJWKHQHG

WKHZKROHVWUXFWXUHORYHVLWVVWDELOLW\/LNHZLVHDGHFUHDVHLQWKHSURVSHULW\RI

WKHSHRSOHLQIDYRURIWKHJRYHUQPHQWLVRXWDQGRXWGHFUHDVH$QGWKH

HQWLUHWKHPHRIWKHKH[DJUDPLVGLUHFWHGWRVKRZLQJKRZWKLVVKLIWRIZHDOWK

FDQWDNHSODFHZLWKRXWFDXVLQJWKHVRXUFHVRIZHDOWKFDQWDNHSODFHZLWKRXW

FDXVLQJWKHVRXUFHVRIZHDOWKLQWKHQDWLRQDQGLWVORZHUFODVVHVWRIDLO

7+(-8'*0(17

'(&5($6(FRPELQHGZLWKVLQFHULW\

%ULQJVDERXWVXSUHPHJRRGIRUWXQH

:LWKRXWEODPH

background image

2QHPD\EHSHUVHYHULQJLQWKLV

,WIXUWKHUVRQHWRXQGHUWDNHVRPHWKLQJ

+RZLVWKLVWREHFDUULHGRXW"

2QHPD\XVHWRZVPDOOERZOVIRUWKHVDFULILFH

'HFUHDVHGRHVQRWXQGHUDOOFLUFXPVWDQFHVPHDQVRPHWKLQJEDG,QFUHDVH

DQGGHFUHDVHFRPHLQWKHLURZQWLPH:KDWPDWWHUVKHUHLVWRXQGHUVWDQG

WKHWLPHDQGQRWWRWU\WRFRYHUXSSRYHUW\ZLWKHPSW\SUHWHQVH,IDWLPHRI

VFDQW\UHVRXUFHVEULQJVRXWDQLQQHUWUXWKRQHPXVWQRWIHHODVKDPHGRI

VLPSOLFLW\)RUVLPSOLFLW\LVWKHQWKHYHU\WKLQJQHHGHGWRSURYLGHLQQHU

VWUHQJWKIRUIXUWKHUXQGHUWDNLQJV,QGHHGWKHUHQHHGE\QRFRQFHUQLIWKH

RXWZDUGEHDXW\RIWKHFLYLOL]DWLRQHYHQWKHHODERUDWLRQRIUHOLJLRXVIRUPV

VKRXOGKDYHWRVXIIHUEHFDXVHRIVLPSOLFLW\2QHPXVWGUDZRQWKHVWUHQJWK

RIWKHLQQHUDWWLWXGHWRFRPSHQVDWHIRUZKDWLVODFNLQJLQH[WHUQDOVWKHQWKH

SRZHURIWKHFRQWHQWPDNHVXSIRUWKHVLPSOLFLW\RIIRUP7KHUHLVQRQHHG

RISUHVHQWLQJIDOVHDSSHDUDQFHVWR*RG(YHQZLWKVOHQGHUPHDQVWKH

VHQWLPHQWRIWKHKHDUWFDQEHH[SUHVVHG

7+(,0$*(

$WWKHIRRWRIWKHPRXQWDLQWKHODNH

7KHLPDJHRI'(&5($6(

7KXVWKHVXSHULRUPDQFRQWUROVKLVDQJHU

$QGUHVWUDLQVKLVLQVWLQFWV

7KHODNHDWWKHIRRWRIWKHPRXQWDLQHYDSRUDWHV,QWKLVZD\LWGHFUHDVHVWR

WKHEHQHILWRIWKHPRXQWDLQZKLFKLVHQULFKHGE\LWVPRLVWXUH7KH

PRXQWDLQVWDQGVDVWKHV\PERORIVWXEERUQVWUHQJWKWKDWFDQKDUGHQLQWR

DQJHU7KHODNHLVWKHV\PERORIXQFKHFNHGJDLHW\WKDWFDQGHYHORSLQWR

SDVVLRQDWHGULYHVDWWKHH[SHQVHRIWKHOLIHIRUFHV7KHUHIRUHGHFUHDVHLV

QHFHVVDU\DQJHUPXVWEHGHFUHDVHGE\NHHSLQJVWLOOWKHLQVWLQFWVPXVWEH

FXUEHGE\UHVWULFWLRQ%\WKLVGHFUHDVHRIWKHORZHUSRZHUVRIWKHSV\FKHWKH

KLJKHUDVSHFWVRIWKHVRXODUHHQULFKHG

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

*RLQJTXLFNO\ZKHQRQHVWDVNVDUHILQLVKHG

,VZLWKRXWEODPH

%XWRQHPXVWUHIOHFWRQKRZPXFKRQHPD\GHFUHDVHRWKHUV

,WLVXQVHOILVKDQGJRRGZKHQDPDQDIWHUFRPSOHWLQJKLVRZQXUJHQWWDVNV

XVHVKLVVWUHQJWKLQWKHVHUYLFHRIRWKHUVDQGZLWKRXWEUDJJLQJRUPDNLQJ

PXFKRILWKHOSVTXLFNO\ZKHUHKHOSLVQHHGHG%XWWKHPDQLQDVXSHULRU

SRVLWLRQZKRLVWKXVDLGHGPXVWZHLJKFDUHIXOO\KRZPXFKKHFDQDFFHSW

ZLWKRXWGRLQJWKHKHOSIXOVHUYDQWRUIULHQGUHDOKDUP2QO\ZKHUHVXFK

GHOLFDF\RIIHHOLQJH[LVWVFDQRQHJLYHRQHVHOIXQFRQGLWLRQDOO\DQGZLWKRXW

KHVLWDWLRQ

background image

1LQHLQWKHVHFRQGSODFHPHDQV

3HUVHYHUDQFHIXUWKHUV

7RXQGHUWDNHVRPHWKLQJEULQJVPLVIRUWXQH

:LWKRXWGHFUHDVLQJRQHVHOI

2QHLVDEOHWREULQJLQFUHDVHWRRWKHUV

$KLJKPLQGHGVHOIDZDUHQHVVDQGDFRQVLVWHQWVHULRXVQHVVZLWKQRIRUIHLWRI

GLJQLW\DUHQHFHVVDU\LIDPDQZDQWVWREHRIVHUYLFHWRRWKHUV+HZKRWKURZ

KLPVHOIDZD\LQRUGHUWRGRWKHELGGLQJRIDVXSHULRUGLPLQLVKHVKLVRZQ

SRVLWLRQZLWKRXWWKHUHE\JLYLQJODVWLQJEHQHILWWRWKHRWKHU7KLVLVZURQJ

7RUHQGHUWUXHVHUYLFHRIODVWLQJYDOXHWRDQRWKHURQHPXVWVHUYHKLP

ZLWKRXWUHOLQTXLVKLQJRQHVHOI

ƒ6L[LQWKHWKLUGSODFHPHDQV

:KHQWKUHHSHRSOHMRXUQH\WRJHWKHU

7KHLUQXPEHULQFUHDVHVE\RQH

:KHQRQHPDQMRXUQH\VDORQH

+HILQGVDFRPSDQLRQ

:KHQWKHUHDUHWKUHHSHRSOHWRJHWKHUMHDORXV\DULVHV2QHRIWKHPZLOOKDYH

WRJR$YHU\FORVHERQGLVSRVVLEOHRQO\EHWZHHQWZRSHRSOH%XWZKHQRQH

PDQLVORQHO\KHLVFHUWDLQWRILQGDFRPSDQLRQZKRFRPSOHPHQWVKLP

6L[LQWKHIRXUWKSODFHPHDQV

,IDPDQGHFHDVHVKLVIDXOWV

,WPDNHVWKHRWKHUKDVWHQWRFRPHDQGUHMRLFH

1REODPH

$PDQVIDXOWVRIWHQSUHYHQWHYHQZHOOGLVSRVHGSHRSOHIURPFRPLQJFORVHU

WRKLP+LVIDXOWVDUHVRPHWLPHVUHLQIRUFHGE\WKHHQYLURQPHQWLQZKLFKKH

OLYHV%XWLILQKXPLOLW\KHFDQEULQJKLPVHOIWRWKHSRLQWRIJLYLQJWKHPXS

KHIUHHVKLVZHOOGLVSRVHGIULHQGVIURPDQLQQHUSUHVVXUHDQGFDXVHVWKHPWR

DSSURDFKWKHPRUHTXLFNO\DQGWKHUHLVPXWXDOMR\

ƒ6L[LQWKHILIWKSODFHPHDQV

6RPHRQHGRHVLQGHHGLQFUHDVHKLP

7HQSDLUVRIWRUWRLVHVFDQQRWRSSRVHLW

6XSUHPHJRRGIRUWXQH

,IVRPHRQHLVPDUNHGRXWE\IDWHIRUJRRGIRUWXQHLWFRPHVZLWKRXWIDLO$OO

RUDFOHVDVIRULQVWDQFHWKRVHWKDWDUHUHDGIURPWKHVKHOOVRIWRUWRLVHVDUH

ERXQGWRFRQFXULQJLYLQJKLPIDYRUDEOHVLJQV+HQHHGIHDUQRWKLQJ

EHFDXVHKLVOXFNLVRUGDLQHGIURPRQKLJK

1LQHDWWKHWRSPHDQV

,IRQHLVLQFUHDVHGZLWKRXWGHSULYLQJRWKHU

7KHUHLVQREODPH

background image

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

,WIXUWKHUVRQHWRXQGHUWDNHVRPHWKLQJ

2QHREWDLQVVHUYDQWV

%XWQRORQJHUKDVDVHSDUDWHKRPH

7KHUHDUHSHRSOHZKRGLVSHQVHEOHVVLQJVWRWKHZKROHZRUOG(YHU\LQFUHDVH

LQSRZHUWKDWFRPHVWRWKHPEHQHILWVWKHZKROHRIPDQNLQGDQGWKHUHIRUH

GRHVQRWEULQJGHFUHDVHWRRWKHUV7KURXJKSHUVHYHUDQFHDQG]HDORXVZRUND

PDQZLQVVXFFHVVDQGILQGVKHOSHUVDVWKH\DUHQHHGHG%XWZKDWKH

DFFRPSOLVKHVLVQRWDOLPLWHGSULYDWHDGYDQWDJHLWLVDSXEOLFJRRGDQG

DYDLODEOHWRHYHU\RQH

LQGH[

,,QFUHDVH

DERYH6817+(*(17/(:,1'

EHORZ&+r17+($5286,1*7+81'(5

7KHLGHDRILQFUHDVHLVH[SUHVVHGLQWKHIDFWWKDWWKHVWURQJORZHVWOLQHRIWKH

XSSHUWULJUDPKDVVXQNGRZQDQGWDNHQLWVSODFHXQGHUWKHORZHUWULJUDP

7KLVFRQFHSWLRQDOVRH[SUHVVHVWKHIXQGDPHQWDOLGHDRQZKLFKWKH%RRNRI

&KDQJHVLVEDVHG7RUXOHWUXO\LVWRVHUYH

$VDFULILFHRIWKHKLJKHUHOHPHQWWKDWSURGXFHVDQLQFUHDVHRIWKHORZHULV

FDOOHGDQRXWDQGRXWLQFUHDVHLWLQGLFDWHVWKHVSLULWWKDWDORQHKDVSRZHUWR

KHOSWKHZRUOG

7+(-8'*0(17

,1&5($6(,WIXUWKHUVRQH

7RXQGHUWDNHVRPHWKLQJ

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

6DFULILFHRQWKHSDUWRIWKRVHDERYHIRUWKHLQFUHDVHRIWKRVHEHORZILOOVWKH

SHRSOHZLWKDVHQVHRIMR\DQGJUDWLWXGHWKDWLVH[WUHPHO\YDOXDEOHIRUWKH

IORZHULQJRIWKHFRPPRQZHDOWK:KHQSHRSOHDUHWKXVGHYRWHGWRWKHLU

OHDGHUVXQGHUWDNLQJVDUHSRVVLEOHDQGHYHQGLIILFXOWDQGGDQJHURXV

HQWHUSULVHVZLOOVXFFHHG7KHUHIRUHLQVXFKWLPHVRISURJUHVVDQGVXFFHVVIXO

GHYHORSPHQWLWLVQHFHVVDU\WRZRUNDQGPDNHWKHEHVWXVHRIWLPH7KLVWLPH

UHVHPEOHVWKDWRIWKHPDUULDJHRIKHDYHQDQGHDUWKZKHQWKHHDUWKSDUWDNHV

RIWKHFUHDWLYHSRZHURIKHDYHQIRUPLQJDQGEULQJLQJIRUWKOLYLQJEHLQJV

7KHWLPHRI,1&5($6(GRHVQRWHQGXUHWKHUHIRUHLWPXVWEHXWLOL]HGZKLOHLW

ODVWV

7+(,0$*(

:LQGDQGWKXQGHUWKHLPDJHRI,1&5($6(

background image

7KXVWKHVXSHULRUPDQ

,IKHVHHVJRRGKHLPLWDWHVLW

,IKHKDVIDXOWVKHULGVKLPVHOIRIWKHP

:KLOHREVHUYLQJKRZWKXQGHUDQGZLQGLQFUHDVHDQGVWUHQJWKHQHDFKRWKHU

DPDQFDQQRWWKHZD\WRVHOILQFUHDVHDQGVHOILPSURYHPHQW:KHQKH

GLVFRYHUVJRRGLQRWKHUVKHVKRXOGLPLWDWHLWDQGWKXVPDNHHYHU\WKLQJRQ

HDUWKKLVRZQ,IKHSHUFHLYHVVRPHWKLQJEDGLQKLPVHOIOHWKLPULGKLPVHOI

RILW,QWKLVZD\KHEHFRPHVIUHHRIHYLO7KLVHWKLFDOFKDQJHUHSUHVHQWVWKH

PRVWLPSRUWDQWLQFUHDVHRISHUVRQDOLW\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

,WIXUWKHUVRQHWRDFFRPSOLVKJUHDWGHHGV

6XSUHPHJRRGIRUWXQH1REODPH

,IJUHDWKHOSFRPHVWRDPDQIURPRQKLJKWKLVLQFUHDVHGVWUHQJWKPXVWEH

XVHGWRDFKLHYHVRPHWKLQJJUHDWIRUZKLFKKHPLJKWRWKHUZLVHQHYHUKDYH

IRXQGHQHUJ\RUUHDGLQHVVWRWDNHUHVSRQVLELOLW\*UHDWJRRGIRUWXQHLV

SURGXFHGE\VHOIOHVVQHVVDQGLQEULQJLQJDERXWJUHDWJRRGIRUWXQHKH

UHPDLQVIUHHRIUHSURDFK

ƒ6L[LQWKHVHFRQGSODFHPHDQV

6RPHRQHGRHVLQGHHGLQFUHDVHKLP

7HQSDLUVRIWRUWRLVHVFDQQRWRSSRVHLW

&RQVWDQWSHUVHYHUDQFHEULQJVJRRGIRUWXQH

7KHNLQJSUHVHQWVKLPEHIRUH*RG

*RRGIRUWXQH

$PDQEULQJVDERXWUHDOLQFUHDVHE\SURGXFLQJLQKLPVHOIWKHFRQGLWLRQVIRU

LWWKDWLWWKURXJKUHFHSWLYLW\WRDQGORYHRIWKHJRRG7KXVWKHWKLQJIRU

ZKLFKKHVWULYHVFRPHVRILWVHOIZLWKWKHLQHYLWDELOLW\RIQDWXUDOODZ:KHUH

LQFUHDVHLVWKXVLQKDUPRQ\ZLWKWKHKLJKHVWODZVRIWKHXQLYHUVHLWFDQQRW

EHSUHYHQWHGE\DQ\FRQVWHOODWLRQRIDFFLGHQWV%XWHYHU\WKLQJGHSHQGVRQKLV

QRWOHWWLQJXQH[SHFWHGJRRGIRUWXQHPDNHKLPKHHGOHVVKHPXVWPDNHLWKLV

RZQWKURXJKLQQHUVWUHQJWKDQVWHDGIDVWQHVV7KHQKHDFTXLUHVPHDQLQJ

EHIRUH*RGDQGPDQDQGFDQDFFRPSOLVKVRPHWKLQJIRUWKHJRRGRIWKH

ZRUOG

6L[LQWKHWKLUGSODFHPHDQV

2QHLVHQULFKHGWKURXJKXQIRUWXQDWHHYHQWV

1REODPHLI\RXDUHVLQFHUH

$QGZDONLQWKHPLGGOH

$QGUHSRUWZLWKDVHDOWRWKHSULQFH

$WLPHRIEOHVVLQJDQGHQULFKPHQWKDVVXFKSRZHUIXOHIIHFWVWKDWHYHQHYHQWV

RUGLQDULO\XQIRUWXQDWHPXVWWXUQRXWWRWKHDGYDQWDJHRIWKRVHDIIHFWHGE\

background image

WKHP7KHVHSHUVRQVEHFRPHIUHHRIHUURUDQGE\DFWLQJLQKDUPRQ\ZLWK

WUXWKWKH\JDLQVXFKLQQHUDXWKRULW\WKDWWKH\H[HUWLQIOXHQFHDVLIVDQFWLRQHG

E\WKHOHWWHUDQGVHDO

6L[LQWKHIRXUWKSODFHPHDQV

,I\RXZDONLQWKHPLGGOH

$QGUHSRUWWKHSULQFH

+HZLOOIROORZ

,WIXUWKHUVRQHWREHXVHG

,QWKHUHPRYDORIWKHFDSLWDO

,WLVLPSRUWDQWWKDWWKHUHVKRXOGEHPHQZKRPHGLDWHEHWZHHQOHDGHUVDQG

IROORZHUV7KHVHVKRXOGEHGLVLQWHUHVWHGSHRSOHHVSHFLDOO\LQWLPHVRI

LQFUHDVHVLQFHWKHEHQHILWLVWRVSUHDGIURPWKHOHDGHUWRWKHSHRSOH1RWKLQJ

RIWKLVEHQHILWVKRXOGEHKHOGEDFNLQDVHOILVKZD\LWVKRXOGUHDOO\UHDFK

WKRVH

IRUZKRPLWLVLQWHQGHG7KLVVRUWRILQWHUPHGLDU\ZKRDOVRH[HUFLVHVDJRRG

LQIOXHQFHRQWKHOHDGHULVHVSHFLDOO\LPSRUWDQWLQWLPHVZKHQLWLVDPDWWHURI

JUHDWXQGHUWDNLQJVGHFLVLYHIRUWKHIXWXUHDQGUHTXLULQJWKHLQQHUDVVHQWRI

DOOFRQFHUQHG

ƒ1LQHLQWKHILIWKSODFHPHDQV

,ILQWUXWK\RXKDYHDNLQGKHDUWDVNQRW

6XSUHPHJRRGIRUWXQH

7UXO\NLQGQHVVZLOOEHUHFRJQL]HGDV\RXUYLUWXH

7UXHNLQGQHVVGRHVQRWFRXQWXSRQQRUDVNDERXWPHULWDQGJUDWLWXGHEXWDFWV

IURPLQQHUQHFHVVLW\$QGVXFKDWUXO\NLQGKHDUWILQGVLWVHOIUHZDUGHGLQ

EHLQJUHFRJQL]HGDQGWKXVWKHEHQHILFHQWLQIOXHQFHZLOOVSUHDGXQKLQGHUHG

1LQHDWWKHWRSPHDQV

+HEULQJVLQFUHDVHWRQRRQH

,QGHHGVRPHRQHHYHQVWULNHVKLP

+HGRHVQRWNHHSKLVKHDUWFRQVWDQWO\VWHDG\

0LVIRUWXQH

7KHPHDQLQJKHUHLVWKDWWKURXJKUHQXQFLDWLRQWKRVHLQKLJKSODFHVKRXOG

EULQJLQFUHDVHWRWKRVHEHORZ%\QHJOHFWLQJWKLVGXW\DQGKHOSLQJQRRQH

WKH\LQWXUQORVHWKHIXUKWHULQJLQIOXHQFHRIRWKHUVDQGVRRQILQGWKHPVHOYHV

DORQH,QWKLVZD\WKH\LQYLWHDWWDFNV$QDWWLWXGHQRWSHUPDQHQWO\LQ

KDUPRQ\ZLWKWKHGHPDQGVRIWKHWLPHZLOOQHFHVVDULO\EULQJPLVIRUWXQH

ZLWKLW&RQIXFLXVVD\VDERXWWKLVOLQH

7KHVXSHULRUPDQVHWVKLVSHUVRQDWUHVWEHIRUHKHPRYHVKHFRPSRVHVKLV

PLQGEHIRUHKHVSHDNVKHPDNHVKLVUHODWLRQVILUPEHIRUHKHDVNVIRU

VRPHWKLQJ%\DWWHQGLQJWRWKHVHWKUHHPDWWHUVWKHVXSHULRUPDQJDLQV

FRPSOHWHVHFXULW\%XWLIDPDQLVEUXVTXHLQKLVPRYHPHQWVRWKHUVZLOOQRW

FRRSHUDWH,IKHLVDJLWDWHGLQKLVZRUGWKH\DZDNHQQRHFKRLQRWKHUV,IKH

background image

DVNVIRUVRPHWKLQJZLWKRXWKDYLQJILVWHVWDEOLVKHGUHODWLRQVLWZLOOQRWEH

JLYHQWRKLP,IQRRQHLVZLWKKLPWKRVHZKRZRXOGKDUPKLPGUDZQHDU

LQGH[

.XDL%UHDNWKURXJK5HVROXWHQHVV

DERYH78,7+(-2<286/$.(

EHORZ&+,(17+(&5($7,9(+($9(1

7KLVKH[DJUDPVLJQLILHVRQWKHRQHKDQGDEUHDNWKURXJKDIWHUDORQJ

DFFXPXODWLRQRIWHQVLRQDVDVZROOHQULYHUEUHDNVWKURXJKLWVGLNHVRULQWKH

PDQQHURIDFORXGEXUVW2QWKHRWKHUKDQGDSSOLHGWRKXPDQFRQGLWLRQVLW

UHIHUVWRWKHWLPHZKHQLQIHULRUSHRSOHJUDGXDOO\EHJLQWRGLVDSSHDU7KHLU

LQIOXHQFHLVRQWKHZDQHDVDUHVXOWRIUHVROXWHDFWLRQDFKDQJHLQFRQGLWLRQV

RFFXUVDEUHDNWKURXJK7KHKH[DJUDPLVOLQNHGZLWKWKHWKLUGPRQWK

>$SULO0D\@

7+(-8'*0(17

%5($.7+528*+2QHPXVWUHVROXWHO\PDNHWKHPDWWHUNQRZQ

$WWKHFRXUWRIWKHNLQJ

,WPXVWEHDQQRXQFHGWUXWKIXOO\'DQJHU

,WLVQHFHVVDU\WRQRWLI\RQHVRZQFLW\

,WGRHVQRWIXUWKHUWRUHVRUWWRDUPV

,WIXUWKHUVRQHWRXQGHUWDNHVRPHWKLQJ

(YHQLIRQO\RQHLQIHULRUPDQLVRFFXS\LQJDUXOLQJSRVLWLRQLQDFLW\KHLV

DEOHWRRSSUHVVVXSHULRUPHQ(YHQDVLQJOHSDVVLRQVWLOOOXUNLQJLQWKHKHDUW

KDVSRZHUWRREVFXUHUHDVRQ3DVVLRQDQGUHDVRQFDQQRWH[LVWVLGHE\VLGH

WKHUHIRUHILJKWZLWKRXWTXDUWHULVQHFHVVDU\LIWKHJRRGLVWRSUHYDLO

,QDUHVROXWHVWUXJJOHRIWKHJRRGDJDLQVWHYLOWKHUHDUHKRZHYHUGHILQLWH

UXOHVWKDWPXVWQRWEHGLVUHJDUGHGLILWLVWRVXFFHHG)LUVWUHVROXWLRQPXVWEH

EDVHGRQDXQLRQRIVWUHQJWKDQGIULHQGOLQHVV6HFRQGDFRPSURPLVHZLWK

HYLOLVQRWSRVVLEOHHYLOPXVWXQGHUDOOFLUFXPVWDQFHVEHRSHQO\GLVFUHGLWHG

1RUPXVWRXURZQSDVVLRQVDQGVKRUWFRPLQJVEHJORVVHGRYHU7KLUGWKH

VWUXJJOHPXVWQRWEHFDUULHGRQGLUHFWO\E\IRUFH,IHYLOLVEUDQGHGLWWKLQNVRI

ZHDSRQVDQGLIZHGRLWWKHIDYRURIILJKWLQJDJDLQVWLWEORZIRUEORZZHORVH

LQWKHHQGEHFDXVHWKXVZHRXUVHOYHVJHWHQWDQJOHGLQKDWUHGDQGSDVVLRQ

7KHUHIRUHLWLVLPSRUWDQWWREHJLQDWKRPHWREHRQJXDUGLQRXURZQSHUVRQV

DJDLQVWWKHIDXOWVZHKDYHEUDQGHG,QWKLVZD\ILQGLQJQRRSSRQHQWWKH

VKDUSHGJHVRIWKHZHDSRQVRIHYLOEHFRPHVGXOOHG)RUWKHVDPHUHDVRQVZH

VKRXOGQRWFRPEDWRXURZQIDXOWVGLUHFWO\$VORQJDVZHZUHVWOHZLWKWKHP

WKH\FRQWLQXHYLFWRULRXV)LQDOO\WKHEHVWZD\WRILJKWHYLOLVWRPDNH

HQHUJHWLFSURJUHVVLQWKHJRRG

7+(,0$*(

background image

7KHODNHKDVULVHQXSWRKHDYHQ

7KHLPDJHRI%5($.7+528*+

7KXVWKHVXSHULRUPDQ

'LVSHQVHVULFKHVGRZQZDUG

$QGUHIUDLQVIURPUHVWLQJRQKLVYLUWXH

:KHQWKHZDWHURIDODNHKDVULVHQXSWRKHDYHQWKHUHLVUHDVRQWRIHDUD

FORXGEXUVW7DNLQJWKLVDVDZDUQLQJWKHVXSHULRUPDQIRUHVWDOOVDYLROHQW

FROODSVH,IDPDQZHUHWRSLOHXSULFKHVIRUKLPVHOIDORQHZLWKRXW

FRQVLGHULQJRWKHUVKHZRXOGFHUWDLQO\H[SHULHQFHDFROODSVH,IDPDQZHUHWR

SLOHXSULFKHVIRUKLPVHOIDORQHZLWKRXWFRQVLGHULQJRWKHUVKHZRXOG

FHUWDLQO\H[SHULHQFHDFROODSVH)RUDOOJDWKHULQJLVIROORZHGE\GLVSHUVLRQ

7KHUHIRUHWKHVXSHULRUPDQEHJLQVWRGLVWULEXWHZKLOHKHLVDFFXPXODWLQJ,Q

WKHVDPHZD\LQGHYHORSLQJKLVFKDUDFWHUKHWDNHVFDUHQRWWREHFRPH

KDUGHQHGLQREVWLQDF\EXWWRUHPDLQUHFHSWLYHWRLPSUHVVLRQVE\KHOSRIVWULFW

DQGFRQWLQXRXVVHOIH[DPLQDWLRQ

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

0LJKW\LQWKHIRUZDUGVWULGLQJWRHV

:KHQRQHJRHVDQGLVQRWHTXDOWRWKHWDVN

2QHPDNHVDPLVWDNH

,QWLPHVRIUHVROXWHDGYDQFHWKHEHJLQQLQJLVHVSHFLDOO\GLIILFXOW:HIHHO

LQVSLUHGWRSUHVVIRUZDUGEXWUHVLVWDQFHLVVWLOOVWURQJWKHUHIRUHZHRXJKWWR

JDXJHRXURZQVWUHQJWKDQGYHQWXUHRQO\VRIDUDVZHFDQJRZLWKFHUWDLQW\RI

VXFFHVV7RSOXQJHEOLQGO\DKHDGLVZURQJEHFDXVHLWLVSUHFLVHO\DWWKH

EHJLQQLQJWKDWDQXQH[SHFWHGVHWEDFNFDQKDYHWKHPRVWGLVDVWURXVUHVXOWV

1LQHLQWKHVHFRQGSODFHPHDQV

$FU\RIDODUP$UPVDWHYHQLQJDQGDWQLJKW

)HDUQRWKLQJ

5HDGLQHVVLVHYHU\WKLQJ5HVROXWLRQLVLQGLVVROXEO\ERXQGXSZLWKFDXWLRQ

,IDQLQGLYLGXDOLVFDUHIXODQGNHHSVKLVZLWVDERXWKLPKHQHHGQRWEHFRPH

H[FLWHGRUDODUPHG,IKHLVZDWFKIXODWDOOWLPHVHYHQEHIRUHGDQJHULV

SUHVHQW

KHLVDUPHGZKHQGDQJHUDSSURDFKHVDQGQHHGQRWEHDIUDLG7KHVXSHULRU

PDQLVRQKLVJXDUGDJDLQVWZKDWLVQRW\HWLQVLJKWDQGRQWKHDOHUWIRUZKDW

LVQRW\HWZLWKLQKHDULQJWKHUHIRUHKHGZHOOVLQWKHPLGVWRIGLIILFXOWLHVDV

WKRXJKWKH\GLGQRWH[LVW,IDPDQGHYHORSVKLVFKDUDFWHUSHRSOHVXEPLWWR

KLPRIWKHLURZQDFFRUG,IUHDVRQWULXPSKVWKHSDVVLRQVZLWKGUDZRI

WKHPVHOYHV7REHFLUFXPVSHFWDQGQRWWRIRUJHWRQHVDUPRULVWKHULJKWZD\

WRVHFXULW\

1LQHLQWKHWKLUGSODFHPHDQV

background image

7REHSRZHUIXOLQWKHFKHHNERQHV

%ULQJVPLVIRUWXQH

7KHVXSHULRUPDQLVILUPO\UHVROYHG

+HZDONVDORQHDQGLVFDXJKWLQWKHUDLQ

+HLVEHVSDWWHUHG

$QGSHRSOHPXUPXUDJDLQVWKLP

1REODPH

+HUHZHKDYHDPDQLQDQDPELJXRXVVLWXDWLRQ:KLOHDOORWKHUVDUH

HQJDJHGLQDUHVROXWHILJKWDJDLQVWDOOWKDWLVLQIHULRUKHDORQHKDVDFHUWDLQ

UHODWLRQVKLSZLWKDQLQIHULRUPDQ,IKHZHUHWRVKRZVWUHQJWKRXWZDUGO\

DQGWXUQDJDLQVWWKLVPDQEHIRUHWKHWLPHLVULSHKHZRXOGRQO\HQGDQJHUWKH

HQWLUHVLWXDWLRQEHFDXVHWKHLQIHULRUPDQZRXOGWRRTXLFNO\KDYHUHFRXUVHWR

FRXQWHUPHDVXUHV7KHWDVNRIWKHVXSHULRUPDQEHFRPHVH[WUHPHO\GLIILFXOW

KHUH+HPXVWEHILUPO\UHVROYHGZLWKLQKLPVHOIDQGZKLOHPDLQWDLQLQJ

DVVRFLDWLRQZLWKWKHLQIHULRUPDQDYRLGDQ\SDUWLFLSDWLRQLQKLVHYLOQHVV+H

ZLOORIFRXUVHEHPLVMXGJHG,WZLOOEHWKRXJKWWKDWKHEHORQJWRWKHSDUW\RI

WKHLQIHULRUPDQ+HZLOOEHORQHO\EHFDXVHQRRQHZLOOXQGHUVWDQGKLP+LV

UHODWLRQVZLWKWKHLQIHULRUPDQZLOOVXOO\KLPLQWKHH\HVRIWKHPXOWLWXGH

DQGWKH\ZLOOWXUQDJDLQVWKLPJUXPEOLQJ%XWKHFDQHQGXUHWKLVODFNRI

DSSUHFLDWLRQDQGPDNHVQRPLVWDNHEHFDXVHKHUHPDLQVWUXHWRKLPVHOI

1LQHLQWKHIRXUWKSODFHPHDQV

7KHUHLVQRVNLQRQKLVWKLJKV

$QGZDONLQJFRPHVKDUG

,IDPDQZHUHWROHWKLPVHOIEHOHGOLNHDVKHHS

5HPRUVHZRXOGGLVDSSHDU

%XWLIWKHVHZRUGVDUHKHDUG

7KH\ZLOOQRWEHEHOLHYHG

+HUHDPDQLVVXIIHULQJIURPLQQHUUHVWOHVVQHVVDQGFDQQRWDELGHLQKLVSODFH

+HZRXOGOLNHWRSXVKIRUZDUGXQGHUDQ\FLUFXPVWDQFHVEXWHQFRXQWHUV

LQVXSHUDEOHREVWDFOHV7KXVKLVVLWXDWLRQHQWDLOVDQLQQHUFRQIOLFW7KLVLVGXH

WRWKHREVWLQDF\ZLWKZKLFKKHVHHNVWRHQIRUFHKLVZLOO,IKHZRXOGGHVLVW

IURPWKLVREVWLQDF\HYHU\WKLQJZRXOGJRZHOO%XWWKLVDGYLFHOLNHVRPXFK

RWKHUJRRGFRXQVHOZLOOEHLJQRUHG)RUREVWLQDF\PDNHVDPDQXQDEOHWR

KHDUIRUDOOWKDWKHKDVHDUV

ƒ1LQHLQWKHILIWKSODFHPHDQV

,QGHDOLQJZLWKZHHGV

)LUPUHVROXWLRQLVQHFHVVDU\

:DONLQJLQWKHPLGGOH

5HPDLQVIUHHRIEODPH

:HHGVDOZD\VJURZEDFNDJDLQDQGDUHGLIILFXOWWRH[WHUPLQDWH6RWRRWKH

VWUXJJOHDJDLQVWDQLQIHULRUPDQLQDKLJKSRVLWLRQGHPDQGVILUPUHVROXWLRQ

2QHKDVFHUWDLQUHODWLRQVZLWKKLPKHQFHWKHUHLVGDQJHUWKDWRQHPD\JLYH

XSWKHVWUXJJOHDVKRSHOHVV%XWWKLVPXVWQRWEH2QHPXVWJRRQUHVROXWHO\

background image

DQGQRWDOORZKLPVHOIWREHGHIOHFWHGIURPKLPFRXUVH2QO\LQWKLVZD\GRHV

RQHUHPDLQIUHHRIEODPH

6L[DWWKHWRSPHDQV

1RFU\

,QWKHHQGPLVIRUWXQHFRPHV

9LFWRU\VHHPVWRKDYHEHHQDFKLHYHG7KHUHUHPDLQVPHUHO\DUHPQDQWRI

WKHHYLOUHVROXWHO\WREHHUDGLFDWHGDVWKHWLPHGHPDQGV(YHU\WKLQJORRNV

HDV\-XVWWKHUHKRZHYHUOLHVWKHGDQJHU,IZHDUHQRWRQJXDUGHYLOZLOO

VXFFHHGLQHVFDSLQJE\PHDQVRIFRQFHDOPHQWDQGZKHQLWKDVHOXGHGXVQHZ

PLVIRUWXQHVZLOOGHYHORSIURPWKHUHPDLQLQJVHHGVIRUHYLOGRHVQRWGLH

HDVLO\6RWRRLQGHDOLQJZLWKWKHHYLOLQRZQVRZQFKDUDFWHURQHPXVWJRWR

ZRUNZLWKWKRURXJKQHVV,IRXWRIFDUHOHVVQHVVDQ\WKLQJZHUHWREH

RYHUORRNHGQHZHYLOZRXOGDULVHIURPLW

LQGH[

.RX&RPLQJWR0HHW

DERYH&+,(17+(&5($7,9(+($9(1

EHORZ6817+(*(17/(:,1'

7KLVKH[DJUDPLQGLFDWHVDVLWXDWLRQLQZKLFKWKHSULQFLSOHRIGDUNQHVVDIWHU

KDYLQJEHHQHOLPLQDWHGIXUWLYHO\DQGXQH[SHFWHGO\REWUXGHVDJDLQIURP

ZLWKLQDQGEHORZ2ILWVRZQDFFRUGWKHIHPDOHSULQFLSOHFRPHVWRPHHWWKH

PDOH,WLVDQXQIDYRUDEOHDQGGDQJHURXVVLWXDWLRQDQGZHPXVWXQGHUVWDQG

DQGSURPSWO\SUHYHQWWKHSRVVLEOHFRQVHTXHQFHV

7KHKH[DJUDPLVOLQNHGZLWKWKHILIWKPRQWK>-XQH-XO\@EHFDXVHDWWKH

VXPPHUVROVWLFHWKHSULQFLSOHRIGDUNQHVVJUDGXDOO\EHFRPHVDVFHQGDQWDJDLQ

7+(-8'*0(17

&20,1*720((77KHPDLGHQLVSRZHUIXO

2QHVKRXOGQRWPDUU\VXFKDPDLGHQ

7KHULVHRIWKHLQIHULRUHOHPHQWLVSLFWXUHGKHUHLQWKHLPDJHRIDEROGJLUO

ZKROLJKWO\VXUUHQGHUVKHUVHOIDQGWKXVVHL]HVSRZHU7KLVZRXOGQRWEH

SRVVLEOHLIWKHVWURQJDQGOLJKWJLYLQJHOHPHQWKDGQRWLQWXUQFRPHKDOIZD\

7KHLQIHULRUWKLQJVHHPVVRKDUPOHVVDQGLQYLWLQJWKDWDPDQGHOLJKWVLQLWLW

ORRNVVRVPDOODQGZHDNWKDWKHLPDJLQHVKHPD\GDOO\ZLWKLWDQGFRPHWR

QRKDUP

7KHLQIHULRUPDQULVHVRQO\EHFDXVHWKHVXSHULRUPDQGRHVQRWUHJDUGKLP

DVGDQJHURXVDQGVROHQGVKLPSRZHU,IKHZHUHUHVLVWHGIURPWKHILVWKH

FRXOGQHYHUJDLQLQIOXHQFH

7KHWLPHRI&20,1*720((7LVLPSRUWDQWLQVWLOODQRWKHUZD\

$OWKRXJKDVDJHQHUDOUXOHWKHZHDNVKRXOGQRWFRPHWRPHHWWKHVWURQJ

background image

WKHUHDUHWLPHVZKHQWKLVKDVJUHDWVLJQLILFDQFH:KHQKHDYHQDQGHDUWK

FRPHWRPHHWHDFKRWKHUDOOFUHDWXUHVSURVSHUZKHQDSULQFHDQGKLVRIILFLDO

FRPHWRPHHWHDFKRWKHUWKHZRUOGLVSXWLQRUGHU,WLVQHFHVVDU\IRU

HOHPHQWVSUHGHVWLQHGWREHMRLQHGDQGPXWXDOO\GHSHQGHQWWRFRPHWRPHHW

RQHDQRWKHUKDOIZD\%XWWKHFRPLQJWRJHWKHUPXVWEHIUHHRIGLVKRQHVW

XOWHULRUPRWLYHVRWKHUZLVHKDUPZLOOUHVXOW

7+(,0$*(

8QGHUKHDYHQZLQG

7KHLPDJHRI&20,1*720((7

7KXVGRHVWKHSULQFHDFWZKHQGLVVHPLQDWLQJKLVFRPPDQGV

$QGSURFODLPLQJWKHPWRWKHIRXUTXDUWHUVRIKHDYHQ

7KHVLWXDWLRQKHUHUHVHPEOHVWKDWLQKH[DJUDP.XDQ&217(03/$7,21

9,(:,QWKHODWWHUWKHZLQGEORZVRYHUWKHHDUWKKHUHLWEORZVXQGHU

KHDYHQLQERWKFDVHVLWJRHVHYHU\ZKHUH7KHUHWKHZLQGLVRQWKHHDUWKDQG

V\PEROL]HVWKHUXOHUWDNLQJQRWHRIWKHFRQGLWLRQVLQKLVNLQJGRPKHUHWKH

ZLQGEORZVIURPDERYHDQGV\PEROL]HVWKHLQIOXHQFHH[HUFLVHGE\WKHUXOHU

WKURXJKKLVFRPPDQGV+HDYHQLVIDUIURPWKHWKLQJVRIHDUWKEXWLWVHWV

WKHPLQPRWLRQE\PHDQVRIWKHZLQG7KHUXOHULVIDUIRUPKLVSHRSOHEXW

KHVHWVWKHPLQPRWLRQE\PHDQVRIKLVFRPPDQGVDQGGHFUHHV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

,WPXVWEHFKHFNHGZLWKDEUDNHRIEURQ]H

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

,IRQHOHWVLWWDNHLWVFRXUVHRQHH[SHULHQFHVPLVIRUWXQH

(YHQDOHDQSLJKDVLWLQKLPWRUDJHDURXQG

,IDQLQIHULRUHOHPHQWKDVZRUPHGLWVZD\LQLWPXVWEHHQHUJHWLFDOO\FKHFNHG

DWRQFH%\FRQVLVWHQWO\FKHFNLQJLWEDGHIIHFWVFDQEHDYRLGHG,ILWLV

DOORZHG

WRWDNHLWVFRXUVHPLVIRUWXQHLVERXQGWRUHVXOWWKHLQVLJQLILFDQFHRIWKDW

ZKLFKFUHHSVLQVKRXOGQRWEHDWHPSWDWLRQWRXQGHUUDWHLW$SLJWKDWLVVWLOO

\RXQJDQGOHDQFDQQRWUDJHDURXQGPXFKEXWDIWHULWKDVHDWHQLWVILOODQG

EHFRPHVWURQJLWVWUXHQDWXUHFRPHVRXWLILWKDVQRWSUHYLRXVO\EHHQFXUEHG

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

7KHUHLVDILVKLQWKHWDQN1REODPH

'RHVQRWIXUWKHUJXHVWV

7KHLQIHULRUHOHPHQWLVQRWRYHUFRPHE\YLROHQFHEXWLVNHSWXQGHUJHQWOH

FRQWURO7KHQQRWKLQJHYLOLVWREHIHDUHG%XWFDUHPXVWEHWDNHQQRWWROHWLW

FRPHLQFRQWDFWZLWKWKRVHIXUWKHUDZD\EHFDXVHRQFHIUHHLWZRXOGXQIROGLWV

HYLODVSHFWVXQFKHFNHG

background image

1LQHLQWKHWKLUGSODFHPHDQV

7KHUHLVQRVNLQRQKLVWKLJKV

$QGZDONLQJFRPHVKDUG

,IRQHLVPLQGIXORIWKHGDQJHU

1RJUHDWPLVWDNHLVPDGH

7KHUHLVDWHPSWDWLRQWRIDOOLQZLWKWKHHYLOHOHPHQWRIIHULQJLWVHOIDYHU\

GDQJHURXVVLWXDWLRQ)RUWXQDWHO\FLUFXPVWDQFHVSUHYHQWWKLVRQHZRXOGOLNH

WRGRLWEXWFDQQRW7KLVOHDGVWRSDLQIXOLQGHFLVLRQLQEHKDYLRU%XWLIZH

JDLQFOHDULQVLJKWLQWRWKHGDQJHURIWKHVLWXDWLRQZHVKDOODWOHDVWDYRLGPRUH

VHULRXVPLVWDNHV

1LQHLQWKHIRXUWKSODFHPHDQV

1RILVKLQWKHWDQN

7KLVOHDGVWRPLVIRUWXQH

,QVLJQLILFDQWSHRSOHPXVWEHWROHUDWHGLQRUGHUWRNHHSWKHPZHOOGLVSRVHG

7KHQZHFDQPDNHXVHRIWKHPLIZHVKRXOGQHHGWKHP,IZHEHFRPH

DOLHQDWHGIURPWKHPDQGGRQRWPHHWWKHPKDOIZD\WKH\WXUQWKHLUEDFNVRQ

XVDQGDUHQRWDWRXUGLVSRVDOZKHQZHQHHGWKHP%XWWKLVLVRXURZQIDXOW

ƒ1LQHLQWKHILIWKSODFHPHDQV

$PHORQFRYHUHGZLWKZLOORZOHDYHV

+LGGHQOLQHV

7KHQLWGURSVGRZQWRRQHIURPKHDYH

7KHPHORQOLNHWKHILVKLVDV\PERORIWKHSULQFLSOHRIGDUNQHVV,WLVVZHHW

EXWVSRLOVHDVLO\DQGIRUWKLVUHDVRQLVSURWHFWHGZLWKDFRYHURIZLOORZOHDYHV

7KLVLVDVLWXDWLRQLQZKLFKDVWURQJVXSHULRUZHOOSRLVHGPDQWROHUDWHVDQG

SURWHFWVWKHLQIHULRUVLQKLVFKDUJH+HKDVWKHILUPOLQHVRIRUGHUDQEHDXW\

ZLWKLQKLPVHOIEXWKHGRHVQRWOD\VWUHVVXSRQWKHP+HGRHVQRWERWKHUKLV

VXERUGLQDWHVZLWKRXWZDUGVKRZRUWLUHVRPHDGPRQLWLRQVEXWOHDYHVWKHP

TXLWHIUHHSXWWLQJKLVWUXVWLQWKHWUDQVIRUPLQJSRZHURIDVWURQJDQGXSULJKW

SHUVRQDOLW\$QGEHKROG)DWHLVIDYRUDEOH+LVLQIHULRUVUHVSRQGWRKLV

LQIOXHQFHDQGIDOOWRKLVGLVSRVLWLRQOLNHULSHIUXLW

1LQHDWWKHWRSPHDQV

+HFRPHVWRPHHWZLWKKLVKRUQV

+XPLOLDWLRQ1REODPH

:KHQDPDQKDVZLWKGUDZQIURPWKHZRUOGLWVWXPXOWRIWHQEHFRPHV

XQEHDUDEOHWRKLP7KHUHDUHPDQ\SHRSOHZKRLQDQREOHSULGHKROG

WKHPVHOYHVDORRIIURPDOOWKDWLVORZDQGUHEXIILWEUXVTXHO\ZKHUHYHULW

FRPHVWRPHHWWKHP6XFKSHUVRQVDUHUHSURDFKHGIRUEHLQJSURXGDQG

GLVWDQWEXWVLQFHDFWLYHGXWLHVQRORQJHUKROGWKHPWRWKHZRUOGWKLVGRHV

QRWJUHDWO\PDWWHU7KH\NQRZKRZWREHDUWKHGLVOLNHRIWKHPDVVHVZLWK

FRPSRVXUH

LQGH[

background image

7VXL*DWKHULQJ7RJHWKHU>0DVVLQJ@

DERYH78,7+(-2<286/$.(

EHORZ.817+(5(&(37,9(($57+

7KLVKH[DJUDPLVUHODWHGLQIRUPDQGPHDQLQJWR3L+2/',1*72*(7+(5

,QWKHODWWHUZDWHULVRYHUWKHHDUWKKHUHDODNHLVRYHUWKHHDUWK%XW

VLQFHWKHODNHLVDSODFHZKHUHZDWHUFROOHFWVWKHLGHDRIJDWKHULQJWRJHWKHULV

HYHQPRUHVWURQJO\H[SUHVVHGKHUHWKDQLQWKHRWKHUKH[DJUDP7KHVDPH

LGHDDOVRDULVHVIURPWKHIDFWWKDWLQWKHSUHVHQWFDVHLWLVWRZVWURQJOLQHVWKH

IRXUWKDQGWKHILIWKWKDWEULQJDERXWWKHJDWKHUWRJHWKHUZKHUHDVLQWKH

IRUPHUFDVHRQHVWURQJOLQHWKHILIWKVWDQGVLQWKHPLGVWRIZHDNOLQHV

7+(-8'*0(17

*$7+(5,1*72*(7+(56XFFHVV

7KHNLQJDSSURDFKHVKLVWHPSOH

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

7KLVEULQJVVXFFHVV3HUVHYHUDQFHIXUWKHUV

7REULQJJUHDWRIIHULQJVFUHDWHVJRRGIRUWXQH

,WIXUWKHUVRQHWRXQGHUWDNHVRPHWKLQJ

7KHJDWKHULQJWRJHWKHURISHRSOHLQODUJHFRPPXQLWLHVLVHLWKHUDQDWXUDO

RFFXUUHQFHDVLQWKHFDVHRIWKHIDPLO\RUDQDUWLILFLDORQHDVLQWKHFDVHRI

WKHVWDWH7KHIDPLO\JDWKHUVDERXWWKHIDWKHUDVLWVKHDG7KHSHUSHWXDWLRQ

RI

WKLVJDWKHULQJLQJURXSVLVDFKLHYHGWKURXJKWKHVDFULILFHWRWKHDQFHVWRUVDW

ZKLFKWKHZKROHFODQLVJDWKHUHGWRJHWKHU7KURXJKWKHFROOHFWLYHSLHW\RI

WKHOLYLQJPHPEHUVRIWKHIDPLO\WKHDQFHVWRUVEHFRPHVRLQWHJUDWHGLQWKH

VSLULWXDOOLIHRIWKHIDPLO\WKDWLWFDQQRWEHGLVSHUVHGRUGLVVROYHG

:KHUHPHQDUHWREHJDWKHUHGWRJHWKHUUHOLJLRXVIRUFHVDUHQHHGHG%XW

WKHUHPXVWDOVREHDKXPDQOHDGHUWRVHUYHDVWKHFHQWHURIWKHJURXS,Q

RUGHUWREHDEOHWREULQJRWKHUVWRJHWKHUWKLVOHDGHUPXVWILUVWRIDOOEH

FROOHFWHGZLWKLQKLPVHOI2QO\FROOHFWLYHPRUDOIRUFHFDQXQLWHWKHZRUOG

6XFKJUHDWWLPHVRIXQLILFDWLRQZLOOOHDYHJUHDWDFKLHYHPHQWVEHKLQGWKHP

7KLVLVWKHVLJQLILFDQFHRIWKHJUHDWRIIHULQJVWKDWDUHPDGH,QWKHVHFXODU

VSKHUHOLNHZLVHWKHUHLVQRQHHGRIJUHDWGHHGVLQWKHWLPHRI*$7+(5,1*

72*(7+(5

7+(,0$*(

2YHUWKHHDUWKWKHODNH

7KHLPDJHRI*$7+(5,1*72*(7+(5

7KXVWKHVXSHULRUPDQUHQHZVKLVZHDSRQV

,QRUGHUWRPHHWWKHXQIRUHVHHQ

background image

,IWKHZDWHULQWKHODNHJDWKHUVXQWLOLWULVHVDERYHWKHHDUWKWKHUHLVGDQJHURI

DEUHDNWKURXJK3UHFDXWLRQVPXVWEHWDNHQWRSUHYHQWWKLV6LPLODUO\ZKHUH

PHQJDWKHUWRJHWKHULQJUHDWQXPEHUVVWULIHLVOLNHO\WRDULVHZKHUH

SRVVHVVLRQVDUHFROOHFWHGUREEHU\LVOLNHO\WRRFFXU7KXVLQWKHWLPHRI

*$7+(5,1*72*(7+(5ZHPXVWDUPSURPSWO\WRZDUGRIIWKHXQH[SHFWHG

+XPDQZRHVXVXDOO\FRPHDVDUHVXOWRIXQH[SHFWHGHYHQWVDJDLQVWZKLFKZH

DUHQRWIRUHDUPHG,IZHDUHSUHSDUHGWKH\FDQEHSUHYHQWHG

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

,I\RXDUHVLQFHUHEXWQRWWRWKHHQG

7KHUHZLOOVRPHWLPHVEHFRQIXVLRQVRPHWLPHVJDWKHULQJWRJHWKHU

,I\RXFDOORXW

7KHQDIWHURQHJUDVSRIWKHKDQG\RXFDQODXJKDJDLQ

5HJUHWQRW*RLQJLVZLWKRXWEODPH

7KHVLWXDWLRQLVWKLV3HRSOHGHVLUHWRJDWKHUDURXQGDOHDGHUWRZKRPWKH\

ORRNXS%XWWKH\DUHLQDODUJHJURXSE\ZKLFKWKH\DOORZWKHPVHOYHVWREH

LQIOXHQFHGVRWKDWWKH\ZDYHULQWKHLUGHFLVLRQ7KXVWKH\ODFNDILUPFHQWHU

DURXQGZKLFKWRJDWKHU%XWLIH[SUHVVLRQLVJLYHQWRWKLVQHHGDQGLIWKH\

FDOOIRUKHOSRQHJUDVSRIWKHKDQGIURPWKHOHDGHULVHQRXJKWRWXUQDZD\DOO

GLVWUHVV7KHUHIRUHWKH\PXVWQRWDOORZWKHPVHOYHVWREHOHGDVWUD\,WLV

XQGRXEWHGO\ULJKWWKDWWKH\VKRXOGDWWDFKWKHPVHOYHVWRWKLVOHDGHU

6L[LQWKHVHFRQGSODFHPHDQV

/HWWLQJRQHVHOIEHGUDZQ

%ULQJVJRRGIRUWXQHDQGUHPDLQVEODPHOHVV

,IRQHLVVLQFHUH

,WIXUWKHUVRQHWREULQJHYHQDVPDOORIIHULQJ

,QWKHWLPHRI*$7+(5,1*72*(7+(5ZHVKRXOGPDNHQRDUELWUDU\FKRLFH

RIWKHZD\7KHUHDUHVHFUHWIRUFHVDWZRUNOHDGLQJWRJHWKHUWKRVHZKR

EHORQJ

WRJHWKHU:HPXVW\LHOGWRWKLVDWWUDFWLRQWKHQZHPDNHQRPLVWDNHV

:KHUHLQQHUUHODWLRQVKLSVH[LVWQRJUHDWSUHSDUDWLRQVDQGIRUPDOLWLHVDUH

QHFHVVDU\3HRSOHXQGHUVWDQGRQHDQRWKHUIRUWKZLWKMXVWDVWKH'LYLQLW\

JUDFLRXVO\DFFHSWVDVPDOORIIHULQJLILWFRPHVIURPWKHKHDUW

6L[LQWKHWKLUGSODFHPHDQV

*DWKHULQJWRJHWKHUDPLGVLJKV

1RWKLQJWKDWZRXOGIXUWKHU

*RLQJLVZLWKRXWEODPH

6OLJKWKXPLOLDWLRQ

2IWHQDPDQIHHOVDQXUJHWRXQLWHZLWKRWKHUVEXWWKHLQGLYLGXDOVDURXQG

KLPKDYHDOUHDG\IRUPHGWKHPVHOYHVLQWRDJURXSVRWKDWKHUHPDLQV

background image

LVRODWHG7KHZKROHVLWXDWLRQSURYHVXQWHQDEOH7KHQKHRXJKWWRFKRRVH

WKHZD\RISURJUHVVUHVROXWHO\DOO\LQJKLPVHOIZLWKDPDQZKRVWDQGVQHDUHU

WRWKHFHQWHURIWKHJURXSDQGFDQKHOSKLPWRJDLQDGPLVVLRQWRWKHFORVHG

FLUFOH7KLVLVQRWDPLVWDNHHYHQWKRXJKDWILUVWKLVSRVLWLRQDVDQRXWVLGHULV

VRPHZKDWKXPLOLDWLQJ

ƒ1LQHLQWKHIRXUWKSODFHPHDQV

*UHDWJRRGIRUWXQH1REODPH

7KLVGHVFULEHVDPDQZKRJDWKHUVSHRSOHDURXQGKLPLQWKHQDPHRIKLV

UXOHU6LQFHKHLVQRWVWULYLQJIRUDQ\VSHFLDODGYDQWDJHVIRUKLPVHOIEXWLV

ZRUNLQJXQVHOILVKO\WREULQJDERXWJHQHUDOXQLW\KLVZRUNLVFURZQHGZLWK

VXFFHVVDQGHYHU\WKLQJEHFRPHVDVLWVKRXOGEH

ƒ1LQHLQWKHILIWKSODFHPHDQV

,ILQJDWKHULQJWRJHWKHURQHKDVSRVLWLRQ

7KLVEULQJVQREODPH

,IWKHUHDUHVRPHZKRDUHQRW\HWVLQFHUHO\LQWKHZRUN

6XEOLPHDQGHQGXULQJSHUVHYHUDQFHLVQHHGHG

7KHQUHPRUVHGLVDSSHDUV

:KHQSHRSOHVSRQWDQHRXVO\JDWKHUDURXQGDPDQLWLVRQO\DJRRG,WJLYHV

KLPDFHUWDLQLQIOXHQFHWKDWFDQEHDOWRJHWKHUXVHIXO%XWRIFRXUVHWKHUHLV

DOVRWKHSRVVLELOLW\WKDWPDQ\PD\JDWKHUDURXQGKLPQRWEHFDXVHRIDIHHOLQJ

RIFRQILGHQFHEXWPHUHO\EHFDXVHRIKLVLQIOXHQWLDOSRVLWLRQ7KLVLVFHUWDLQO\

WREHUHJUHWWHG7KHRQO\PHDQVRIGHDOLQJZLWKVXFKSHRSOHLVWRJDLQWKHLU

FRQILGHQFHWKURXJKVWHDGIDVWQHVVDQLQWHQVLILHGXQVZHUYLQJGHYRWLRQWR

GXW\,QWKLVZD\VHFUHWPLVWUXVWZLOOJUDGXDOO\EHRYHUFRPHDQGWKHUHZLOOEH

QRRFFDVLRQIRUUHJUHW

6L[DWWKHWRSPHDQV

/DPHQWLQJDQGVLJKLQJIORRGVRIWHDUV

1REODPH

,WPD\KDSSHQWKDWDQLQGLYLGXDOZRXOGOLNHWRDOO\KLPVHOIZLWKDQRWKHUEXW

KLVJRRGLQWHQWLRQVDUHPLVXQGHUVWRRG7KHQKHEHFRPHVVDGDQGODPHQWV

%XWWKLVLVWKHULJKWFRXUVH)RULWPD\FDXVHWKHRWKHUSHUVRQWRFRPHWRKLV

VHQVHVVRWKDWWKHDOOLDQFHWKDWKDVEHHQVRXJKWDQGVRSDLQIXOO\PLVVHGLV

DIWHUDOODFKLHYHG

LQGH[

6KrQJ3XVKLQJ8SZDUG

DERYH.817+(5(&(37,9(($57+

EHORZ6817+(*(17/(:,1':22'

background image

7KHORZHUWULJUDP6XQUHSUHVHQWVZRRGDQGWKHXSSHU.XQPHDQVWKH

HDUWK/LQNHGZLWKWKLVLVWKHLGHDWKDWZRRGLQWKHHDUWKJURZVXSZDUG,Q

FRQWUDVWWRWKHPHDQLQJRI&KLQ352*5(66WKLVSXVKLQJXSZDUGLV

DVVRFLDWHGZLWKHIIRUWMXVWDVDSODQWQHHGVHQHUJ\IRUSXVKLQJXSZDUG

WKURXJKWKHHDUWK7KDWLVZK\WKLVKH[DJUDPDOWKRXJKLWLVFRQQHFWHGZLWK

VXFFHVVLVDVVRFLDWHGZLWKHIIRUWRIWKHZLOO,Q352*5(66WKHHPSKDVLVLVRQ

H[SDQVLRQ386+,1*83:$5'LQGLFDWHVUDWKHUDYHUWLFDODVFHQWGLUHFWULVH

IURPREVFXULW\DQGORZOLQHVVWRSRZHUDQGLQIOXHQFH

7+(-8'*0(17

386+,1*83:$5'KDVVXSUHPHVXFFHVV

2QHPXVWQRWVHHWKHJUHDWPDQ

)HDUQRW

'HSDUWXUHWRZDUGWKHVRXWK

%ULQJVJRRGIRUWXQH

7KHSXVKLQJXSZDUGRIWKHJRRGHOHPHQWVHQFRXQWHUVQRREVWUXFWLRQDQGLV

WKHUHIRUHDFFRPSDQLHGE\JUHDWVXFFHVV7KHSXVKLQJXSZDUGLVPDGH

SRVVLEOHQRWE\YLROHQFHEXWE\PRGHVW\DQGDGDSWDELOLW\6LQFHWKHLQGLYLGXDO

LVERUQHDORQJE\WKHSURSLWLRXVQHVVRIWKHWLPHKHDGYDQFHV+HPXVWJRWR

VHHDXWKRULWDWLYHSHRSOH+HQHHGQRWEHDIUDLGWRGRWKLVEHFDXVHVXFFHVVLV

DVVXUHG%XWKHPXVWVHWWRZRUNIRUDFWLYLW\WKLVLVWKHPHDQLQJRIWKH

VRXWKEULQJVJRRGIRUWXQH

7+(,0$*(

:LWKLQWKHHDUWKZRRGJURZV

7KHLPDJHRI386+,1*83:$5'

7KXVWKHVXSHULRUPDQRIGHYRWHGFKDUDFWHU

+HDSVXSVPDOOWKLQJ

,QRUGHUWRDFKLHYHVRPHWKLQJKLJKDQGJUHDW

$GDSWLQJLWVHOIWRREVWDFOHVDQGEHQGLQJDURXQGWKHPZRRGLQWKHHDUWK

JURZVXSZDUGZLWKRXWKDVWHDQGZLWKRXWUHVW7KXVWRRWKHVXSHULRUPDQLV

GHYRWHGLQFKDUDFWHUDQGQHYHUSDXVHVLQKLVSURJUHVV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

3XVKLQJXSZDUGWKDWPHHWVZLWKFRQILGHQFH

%ULQJVJUHDWJRRGIRUWXQH

7KLVVLWXDWLRQDWWKHEHJLQQLQJRIDVFHQW-XVWDVZRRGGUDZVVWUHQJWKIRULWV

XSZDUGSXVKIURPWKHURRWZKLFKLQLWVHOILVLQWKHORZHVWSODFHVRWKH

SRZHUWRULVHFRPHVIURPWKLVORZDQGREVFXUHVWDWLRQ%XWWKHUHLVDVSLULWXDO

DIILQLW\ZLWKWKHUXOHUVDERYHDQGWKLVVROLGDULW\FUHDWHVWKHFRQILGHQFH

QHHGHGWRDFFRPSOLVKVRPHWKLQJ

background image

1LQHLQWKHVHFRQGSODFHPHDQV

,IRQHLVVLQFHUH

,WIXUWKHUVRQHWREULQJHYHQDVPDOORIIHULQJ

1REODPH

+HUHDVWURQJPDQLVSUHVXSSRVHG,WLVWUXHWKDWKHGRHVQRWILWLQZLWKKLV

HQYLURQPHQWLQDVPXFKDVKHLVWRREUXVTXHDQGSD\VWRROLWWOHDWWHQWLRQWR

IRUP%XWDVKHLVXSULJKWLQFKDUDFWHUKHPHHWVZLWKUHVSRQVHDQGKLVODFN

RIRXWZDUGIRUPGRHVQRKDUP+HUHXSULJKWQHVVLVWKHRXWFRPHRIVRXQG

TXDOLWLHVRIFKDUDFWHUZKHUHDVLQWKHFRUUHVSRQGLQJOLQHRIWKHSUHFHGLQJ

KH[DJUDPLWLVWKHUHVXOWRILQQDWHKXPLOLW\

1LQHLQWKHWKLUGSODFHPHDQV

2QHSXVKHVXSZDUGLQWRDQHPSW\FLW\

$OOREVWUXFWLRQVWKDWJHQHUDOO\EORFNSURJUHVVIDOODZD\KHUH7KLQJVSURFHHG

ZLWKUHPDUNDEOHHDVH8QKHVLWDWLQJO\RQHIROORZVWKLVURDGLQRUGHUWRSURILW

E\RQHVVXFFHVV6HHQIURPZLWKRXWHYHU\WKLQJVHHPVWREHLQWKHEHVWRI

RUGHU+RZHYHUQRSURPLVHRIJRRGIRUWXQHLVDGGHG,WLVDTXHVWLRQKRZ

ORQJVXFKXQREVWUXFWHGVXFFHVVFDQODVW%XWLWLVZLVHQRWWR\LHOGWRVXFK

PLVJLYLQJVEHFDXVHWKH\RQO\LQKLELWRQHVSRZHU,QVWHDGWKHSRLQWLVWR

SURILWE\WKHSURSLWLRXVQHVVRIWLPH

6L[LQWKHIRXUWKSODFHPHDQV

7KHNLQJRIIHUVKLP0RXQW&KL

*RRGIRUWXQH1REODPH

0RXQW&KLLVLQWKHZHVWHUQ&KLQDWKHKRPHODQGRI.LQJ:rQZKRVHVRQ

WKH'XNHRI&KRXDGGHGWKHZRUGVWRWKHLQGLYLGXDOOLQHV7KH

SURQRXQFHPHQWWDNHVXVEDFNWRDWLPHZKHQWKH&KRXG\QDVW\ZDVFRPLQJ

LQWRSRZHU$WWKDWWLPH.LQJ:rQLQWURGXFHGKLVLOOXVWULRXVKHOSHUVWRWKH

JRGRIKLVQDWLYHPRXQWDLQDQGWKH\UHFHLYHGWKHLUSODFHVLQWKHKDOOVRIWKH

DQFHVWRUVE\WKHVLGHRIWKHUXOHU7KLVLQGLFDWHVDVWDJHLQZKLFKSXVKLQJ

XSZDUGDWWDLQVLWVJRDO2QHDFTXLUHVIDPHLQWKHVLJKWRIJRGVDQGPHQLV

UHFHLYHGLQWRWKHFLUFOHRIWKRVHZKRIRVWHUWKHVSLULWXDOOLIHRIWKHQDWLRQDQG

WKHUHE\DWWDLQVDVLJQLILFDQFHWKDWHQGXUHVEH\RQGWLPH

ƒ6L[LQWKHILIWKSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

2QHSXVKHVXSZDUGE\VWHSV

:KHQDPDQLVDGYDQFLQJIDUWKHUDQGIDUWKHULWLVLPSRUWDQWIRUKLPQRWWR

EHFRPHLQWR[LFDWHGE\VXFFHVV3UHFLVHO\ZKHQKHH[SHULHQFHVJUHDWVXFFHVVLW

LVQHFHVVDU\WRUHPDLQVREHUDQGQRWWRWU\WRVNLSDQ\VWDJHVKHPXVWJRRQ

VORZO\VWHSE\VWHSDVWKRXJKKHVLWDQW2QO\VXFKFDOPVWHDG\SURJUHVV

RYHUOHDSLQJQRWKLQJOHDGVWRWKHJRDO

background image

6L[DWWKHWRSPHDQV

3XVKLQJXSZDUGLQGDUNQHVV

,WIXUWKHUVRQH

7REHXQUHPLWWLQJO\SHUVHYHULQJ

+HZKRSXVKHVXSZDUGEOLQGO\GHOXGHVKLPVHOI+HNQRZVRQO\DGYDQFH

QRWUHWUHDW%XWWKLVPHDQVH[KDXVWLRQ,QVXFKDFDVHLWLVLPSRUWDQWWREH

FRQVWDQWO\PLQGIXOWKDWRQHPXVWEHFRQVFLHQWLRXVDQGFRQVLVWHQWDQGPXVW

UHPDLQVR2QO\WKXVGRHVRQHEHFRPHIUHHRIEOLQGLPSXOVHZKLFKLVDOZD\V

KDUPIXO

LQGH[

.XQ2SSUHVVLRQ([KDXVWLRQ

DERYH78,7+(-2<286/$.(

EHORZ.$17+($%<60$/:$7(5

7KHODNHLVDERYHZDWHUEHORZWKHODNHLVHPSW\GULHGXS([KDXVWLRQLV

H[SUHVVHGLQ\HWDQRWKHUZD\DWWKHWRSDGDUNOLQHLVKROGLQJGRZQWZR

OLJKW

OLQHEHORZDOLJKWOLQHLVKHPPHGLQEHWZHHQWZRGDUNRQHV7KHXSSHU

WULJUDPEHORQJVWRWKHSULQFLSOHRIGDUNQHVVWKHORZHUWRWKHSULQFLSOHRI

OLJKW7KXVHYHU\ZKHUHVXSHULRUPHQDUHRSSUHVVHGDQGKHOGLQUHVWUDLQWE\

LQIHULRUPHQ

7+(-8'*0(17

2335(66,216XFFHVV3HUVHYHUDQFH

7KHJUHDWPDQEULQJVDERXWJRRGIRUWXQH

1REODPH

:KHQRQHKDVVRPHWKLQJWRVD\

,WLVQRWEHOLHYHG

7LPHVRIDGYHUVLW\DUHWKHUHYHUVHRIWLPHVRIVXFFHVVEXWWKH\FDQOHDGWR

VXFFHVVLIWKH\EHIDOOWKHULJKWPDQ:KHQDVWURQJPDQPHHWVZLWK

DGYHUVLW\KHUHPDLQVFKHHUIXOGHVSLWHDOOGDQJHUDQGWKLVFKHHUIXOQHVVLVWKH

VRXUFHRIODWHUVXFFHVVHVLWLVWKDWVWDELOLW\ZKLFKLVVWURQJHUWKDQIDWH+H

ZKR

OHWVKLVVSLULWEHEURNHQE\H[KDXVWLRQFHUWDLQO\KDVQRVXFFHVV%XWLI

DGYHUVLW\RQO\EHQGVDPDQLWFUHDWHVLQKLPDSRZHUWRUHDFWWKDWLVERXQGLQ

WLPHWRPDQLIHVWLWVHOI1RLQIHULRUPDQLVFDSDEOHRIWKLV2QO\WKHJUHDW

PDQEULQJVDERXWJRRIIRUWXQHDQGUHPDLQVEODPHOHVV,WLVWUXHWKDWIRUWKH

WLPHEHLQJRXWZDUGLQIOXHQFHLVGHQLHGKLPEHFDXVHKLVZRUGVKDYHQR

HIIHFW7KHUHIRUHLQWLPHVRIDGYHUVLW\LWLVLPSRUWDQWWREHVWURQJZLWKLQDQG

VSDULQJRIZRUGV

background image

7+(,0$*(

7KHUHLVQRWZDWHULQWKHODNH

7KHLPDJHRI(;+$867,21

7KXVWKHVXSHULRUPDQVWDNHVKLVOLIH

2QIROORZLQJKLVZLOO

:KHQWKHZDWHUKDVIORZHGRXWEHORZWKHODNHPXVWGU\XSDQGEHFRPH

H[KDXVWHG7KDWLVIDWH7KLVV\PEROL]HVDQDGYHUVHIDWHLQKXPDQOLIH,Q

VXFKWLPHVWKHUHLVQRWKLQJDPDQFDQGREXWDFTXLHVFHLQKLVIDWHDQGUHPDLQ

WUXHWRKLPVHOI7KLVFRQFHUQVWKHGHHSHVWVWUDWXPRIKLVEHLQJIRUWKLVDORQH

LVVXSHULRUWRDOOH[WHUQDOIDWH

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

2QHVLWVRSSUHVVHGXQGHUDEDUHWUHH

$QGVWUD\VLQWRDJORRP\YDOOH\

)RUWKUHH\HDUVRQHVHHVQRWKLQJ

:KHQDGYHUVLW\EHIDOOVDPDQLWLVLPSRUWDQWDERYHDOOWKLQJVIRUKLPWREH

VWURQJDQGWRRYHUFRPHWKHWURXEOHLQZDUGO\,IKHLVZHDNWKHWURXEOH

RYHUZKHOPVKLP,QVWHDGRISURFHHGLQJRQKLVZD\KHUHPDLQVVLWWLQJXQGHU

DEDUHWUHHDQGIDOOVHYHUPRUHGHHSO\LQWRJORRPDQGPHODQFKRO\7KLV

PDNHVWKHVLWXDWLRQRQO\PRUHDQGPRUHKRSHOHVV6XFKDQDWWLWXGHFRPHV

IURPDQLQQHUGHOXVLRQWKDWKHPXVWE\DOOPHDQVRYHUFRPH

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

2QHLVRSSUHVVHGZKLOHDWPHDWDQGGULQN

7KHPDQZLWKWKHVFDUOHWNQHHEDQGVLVMXVWFRPLQJ

,WIXUWKHUVRQHWRRIIHUVDFULILFH

7RVHWIRUWKEULQJVPLVIRUWXQH

1REODPH

7KLVSLFWXUHVDVWDWHRILQQHURSSUHVVLRQ([WHUQDOO\DOOLVZHOORQHKDVPHDW

DQGGULQN%XWRQHLVH[KDXVWHGE\WKHFRPPRQSODFHVRIOLIHDQGWKHUH

VHHPVWREHQRZD\RIHVFDSH7KHQKHOSFRPHVIURPDKLJKSODFH$SULQFH

LQDQFLHQW&KLQDSULQFHVZRUHVFDUOHWNQHHEDQGVLVLQVHDUFKRIDEOHKHOSHUV

%XWWKHUHDUHVWLOOREVWUXFWLRQVWREHRYHUFRPH7KHUHIRUHLWLVLPSRUWDQWWR

PHHWWKHVHREVWUXFWLRQVLQWKHYLVLEOHUHDOPE\RIIHULQJVDQGSUD\HU7RVHW

IRUWKZLWKRXWEHLQJSUHSDUHGZRXOGEHGLVDVWURXVWKRXJKQRWPRUDOO\ZURQJ

+HUHDGLVDJUHHDEOHVLWXDWLRQPXVWEHRYHUFRPHE\SDWLHQFHRIVSLULW

6L[LQWKHWKLUGSODFHPHDQV

$PDQSHUPLWVKLPVHOIWREHRSSUHVVHGE\VWRQH

$QGOHDQVRQWKRUQVDQGWKLVWOHV

+HHQWHUVWKHKRXVHDQGGRHVQRWVHHKLVZLIH

0LVIRUWXQH

background image

7KLVVKRZVDPDQZKRLVUHVWOHVVDQGLQGHFLVLYHLQWLPHVRIDGYHUVLW\$W

ILUVWKHZDQWVWRSXVKDKHDGWKHQKHHQFRXQWHUVREVWUXFWLRQVWKDWLWLVWUXH

PHDQRSSUHVVLRQRQO\ZKHQUHFNOHVVO\GHDOWZLWK+HEXWWVKLVKHDGDJDLQVWD

ZDOODQGLQFRQVHTXHQFHIHHOVKLPVHOIRSSUHVVHGE\WKHZDOO7KHQKHOHDQV

RQWKLQJVWKDWKDYHLQWKHPVHOYHVQRVWDELOLW\DQGWKDWDUHPHUHO\DKD]DUG

IRUKLPZKROHDQVRQWKHP7KHUHXSRQKHWXUQVEDFNLUUHVROXWHO\DQG

UHWLUHVLQWRKLVKRXVHRQO\WRILQGDVDIUHVKGLVDSSRLQWPHQWWKDWKLVZLIHLV

QRWWKHUH&RQIXFLXVVD\VDERXWWKLVOLQH

,IDPDQSHUPLWVKLPVHOIWREHRSSUHVVHGE\VRPHWKLQJWKDWRXJKWQRWWR

RSSUHVVKLPKLVQDPHZLOOFHUWDLQO\EHGLVJUDFHG,IKHOHDQVRQWKLQJVXSRQ

ZKLFKRQHFDQQRWOHDQKLVOLIHZLOOFHUWDLQO\EHHQGDQJHUHG)RUKLPZKRLV

LQGLVJUDFHDQGGDQJHUWKHKRXURIGHDWKGUDZVQHDUKRZFDQKHWKHQVWLOO

VHHKLVZLIH"

1LQHLQWKHIRXUWKSODFHPHDQV

+HFRPHVYHU\TXLHWO\RSSUHVVHGLQDJROGHQFDUULDJH

+XPLOLDWLRQEXWWKHHQGLVUHDFKHG

$ZHOOWRGRPDQVHHVWKHQHHGRIWKHORZHUFODVVHVDQGZRXOGOLNHYHU\

PXFKWREHRIKHOS%XWLQVWHDGRISURFHHGLQJZLWKVSHHGDQGHQHUJ\ZKHUH

WKHLULVQHHGKHEHJLQVLQDKHVLWDQWDQGPHDVXUHGZD\7KHQKHHQFRXQWHUV

REVWUXFWLRQV3RZHUIXODQGZHDOWK\DFTXDLQWDQFHVGUDZKLPLQWRWKHLUFLUFOH

KHKDVWRGRDVWKH\GRDQGFDQQRWZLWKGUDZIURPWKHP+HQFHKHILQGV

KLPVHOILQJUHDWHPEDUUDVVPHQW%XWWKHWURXEOHLVWUDQVLWRU\7KHRULJLQDO

VWUHQJWKRIKLVQDWXUHRIIVHWVWKHPLVWDNHKHKDVPDGHDQGWKHJRDOLV

UHDFKHG

ƒ1LQHLQWKHILIWKSODFHPHDQV

+LVQRVHDQGIHHWDUHFXWRII

2SSUHVVLRQDWWKHKDQGVRIWKHPDQZLWKWKHSXUSOHNQHHEDQGV

-R\FRPHVVRIWO\

,WIXUWKHUVRQHWRPDNHRIIHULQJVDQGOLEDWLRQV

$QLQGLYLGXDOZKRKDVWKHJRRGRIPDQNLQGDWKHDUWLVRSSUHVVHGIURP

DERYHDQGEHORZWKLVLVWKHPHDQLQJRIWKHFXWWLQJRIIRIQRVHDQGHIHDW+H

ILQGVQRKHOSDPRQJWKHSHRSOHZKRVHGXW\LWZRXOGEHWRDLGLQWKHZRUNRI

UHVFXHPLQLVWHUVZRUHSXUSOHNQHHEDQGV%XWOLWWOHE\OLWWOHWKLQJVWDNHD

WXUQIRUWKHEHWWHU8QWLOWKDWWLPHKHVKRXOGWXUQWR*RGILUPLQKLVLQQHU

FRPSRVXUHDQGSUD\DQGRIIHUVDFULILFHIRUWKHJHQHUDOZHOOEHLQJ

6L[DWWKHWRSPHDQV

+HLVRSSUHVVHGE\FUHHSLQJYLQHV

+HPRYHVXQFHUWDLQO\DQGVD\V0RYHPHQWEULQJVUHPRUVH

,IRQHIHHOVUHPRUVHRYHUWKLVDQGPDNHVDVWDUW

*RRGIRUWXQHFRPHV

background image

$PDQLVRSSUHVVHGE\ERQGVWKDWFDQHDVLO\EHEURNHQ7KHGLVWUHVVLV

GUDZLQJWRDQHQG%XWKHLVVWLOOLUUHVROXWHKHLVVWLOOLQIOXHQFHGE\WKH

SUHYLRXVFRQGLWLRQDQGIHDUVWKDWKHPD\KDYHFDXVHIRUUHJUHWLIKHPDNHVD

PRYH%XWDVVRRQDVKHJUDVSVWKHVLWXDWLRQFKDQJHVWKLVPHQWDODWWLWXGH

DQGPDNHVDILUPGHFLVLRQKHPDVWHUVWKHRSSUHVVLRQ

LQGH[

&KLQJ7KH:HOO

DERYH.$17+($%<60$/:$7(5

EHORZ6817+(*(17/(:,1':22'

:RRGLVEHORZZDWHUDERYH7KHZRRGJRHVGRZQLQWRWKHHDUWKWREULQJXS

ZDWHU7KHLPDJHGHULYHVIURPWKHSROHDQGEXFNHWZHOORIDQFLHQW&KLQD

7KHZRRGUHSUHVHQWVQRWWKHEXFNHWVZKLFKLQDQFLHQWWLPHVZHUHPDGHRI

FOD\EXWUDWKHUWKHZRRGHQSROHVE\ZKLFKWKHZDWHULVKDXOHGXSIURPWKH

ZHOO7KHLPDJHDOVRUHIHUVWRWKHZRUOGRISODQWVZKLFKOLIWZDWHURXWRIWKH

HDUWKE\PHDQVRIWKHLUILEHUV

7KHZHOOIURPZKLFKZDWHULVGUDZQFRQYH\VWKHIXUWKHULGHDRIDQ

LQH[KDXVWLEOHGLVSHQVLQJRIQRXULVKPHQW

7+(-8'*0(17

7+(:(//7KHWRZQPD\EHFKDQJHG

%XWWKHZHOOFDQQRWEHFKDQJHG

,WQHLWKHUGHFUHDVHVQRULQFUHDVHV

7KH\FRPHDQGJRDQGGUDZIURPWKHZHOO

,IRQHJHWVGRZQDOPRVWWRWKHZDWHU

$QGWKHURSHGRHVQRWJRDOOWKHZD\

2UWKHMXJEUHDNVLWEULQJVPLVIRUWXQH

,QDQFLHQW&KLQDWKHFDSLWDOFLWLHVZHUHVRPHWLPHVPRYHGSDUWO\IRUWKHVDNH

RIPRUHIDYRUDEOHORFDWLRQSDUWO\EHFDXVHRIDFKDQJHLQG\QDVWLHV7KHVW\OH

RIDUFKLWHFWXUHFKDQJHGLQWKHFRXUVHRIFHQWXULHVEXWWKHVKDSHRIWKHZHOO

KDVUHPDLQHGWKHVDPHIURPDQFLHQWWLPHVWRWKLVGD\7KXVWKHZHOOLVWKH

V\PERORIWKDWVRFLDOVWUXFWXUHZKLFKHYROYHGE\PDQNLQGLQPHHWLQJLWV

PRVWSULPLWLYHQHHGVLVLQGHSHQGHQWRIDOOSROLWLFDOIRUPV3ROLWLFDO

VWUXFWXUHVFKDQJHDVGRQDWLRQVEXWWKHOLIHRIPDQZLWKLWVQHHGVUHPDLQV

HWHUQDOO\WKHVDPHWKLVFDQQRWEHFKDQJHG/LIHLVDOVRLQH[KDXVWLEOH,WJURZV

QHLWKHUOHVVQRWPRUHLWH[LVWVIRURQHDQGIRUDOO7KHJHQHUDWLRQVFRPHDQG

JRDQGDOOHQMR\OLIHLQLWVLQH[KDXVWLEOHDEXQGDQFH

+RZHYHUWKHUHDUHWZRSUHUHTXLVLWHVIRUDVDWLVIDFWRU\SROLWLFDORUVRFLDO

RUJDQL]DWLRQRIPDQNLQG:HPXVWJRGRZQWRWKHYHU\IRXQGDWLRQVRIOLIH

)RUDQ\PHUHO\VXSHUILFLDORUGHULQJRIOLIHWKDWOHDYHVLWVGHHSHVWQHHGV

XQVDWLVILHGLVDVLQHIIHFWXDODVLIQRDWWHPSWDWRUGHUKDGHYHUEHHQPDGH

background image

&DUHOHVVQHVVE\ZKLFKWKHMXJLVEURNHQLVDOVRGLVDVWURXV,IIRULQVWDQFHWKH

PLOLWDU\GHIHQVHRIDVWDWHLVFDUULHGWRVXFKH[FHVVWKDWLWSURYRNHVZDUVE\

ZKLFKWKHSRZHURIWKHVWDWHLVDQQLKLODWHGWKLVLVDEUHDNLQJRIWKHMXJ

7KLVKH[DJUDPDSSOLHVDOVRWRWKHLQGLYLGXDO+RZHYHUPHQPD\GLIIHULQ

GLVSRVLWLRQDQGLQHGXFDWLRQWKHIRXQGDWLRQVRIKXPDQQDWXUHDUHWKHVDPH

LQHYHU\RQH$QGHYHU\KXPDQEHLQJFDQGUDZLQWKHFRXUVHRIKLV

HGXFDWLRQIURPWKHLQH[KDXVWLEOHZHOOVSULQJRIWKHGLYLQHLQPDQVQDWXUH

%XWKHUHOLNHZLVHWRZGDQJHUVWKUHDWHQDPDQPD\IDLOLQKLVHGXFDWLRQWR

SHQHWUDWHWRWKHUHDOURRWVRIKXPDQLW\DQGUHPDLQIL[HGLQFRQYHQWLRQD

SDUWLDOHGXFDWLRQRIWKLVVRUWLVDVEDGDVQRQHRUKHPD\VXGGHQO\FROODSVH

DQGQHJOHFWKLVVHOIGHYHORSPHQW

7+(,0$*(

:DWHURYHUZRRGWKHLPDJHRI7+(:(//

7KXVWKHVXSHULRUPDQHQFRXUDJHVWKHSHRSOHDWWKHLUZRUN

$QGH[KRUWVWKHPWRKHOSRQHDQRWKHU

7KHWULJUDP6XQZRRGLVEHORZDQGWKHWULJUDP.DQZDWHULVDERYHLW

:RRGVXFNVZDWHUXSZDUG-XVWDVZRRGDVDQRUJDQLVPLPLWDWHVWKHDFWLRQ

RIWKHZHOOZKLFKEHQHILWVDOOSDUWVRIWKHSODQWWKHVXSHULRUPDQRUJDQL]HV

KXPDQVRFLHW\VRWKDWDVLQDSODQWRUJDQLVPLWVSDUWVFRRSHUDWHIRUWKH

EHQHILWRIWKHZKROH

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

2QHGRHVQRWGULQNWKHPXGRIWKHZHOO

1RDQLPDOVFRPHWRDQROGZHOO

,IDPDQZDQGHUVDURXQGLQVZDPS\ORZODQGVKLVOLIHLVVXEPHUJHGLQPXG

6XFKDPDQORVHVDOOVLJQLILFDQFHIRUPDQNLQG+HZKRWKURZVKLPVHOIDZD\

LVQRORQJHUVRXJKWRXWE\RWKHUV,QWKHHQGQRRQHWURXEOHVDERXWKLPDQ\

PRUH

1LQHLQWKHVHFRQGSODFHPHDQV

$WWKHZHOOKROHRQHVKRRWVILVKHV

7KHMXJLVEURNHQDQGOHDNV

7KHZDWHULWVHOILVFOHDUEXWLWLVQRWEHLQJXVHG7KXVWKHZHOOLVDSODFH

ZKHUHRQO\ILVKZLOOVWD\DQGZKRHYHUFRPHVWRLWFRPHVRQO\WRFDWFKILVK

%XWWKHMXJLVEURNHQVRWKDWWKHILVKFDQQRWEHNHSWLQLW

7KLVGHVFULEHVWKHVLWXDWLRQRIDSHUVRQZKRSRVVHVVHVJRRGTXDOLWLHVEXW

QHJOHFWVWKHP1RRQHERWKHUVDERXWKLP$VDUHVXOWKHGHWHULRUDWHVLQ

PLQG+HDVVRFLDWHVZLWKLQIHULRUPHQDQGFDQQRORQJHUDFFRPSOLVK

DQ\WKLQJZRUWKZKLOH

1LQHLQWKHWKLUGSODFHPHDQV

background image

7KHZHOOLVFOHDQHGEXWQRRQHGULQNVIURPLW

7KLVLVP\KHDUWVVRUURZ

)RURQHPLJKWGUDZIURPLW

,IWKHNLQJZHUHFOHDUPLQGHG

*RRGIRUWXQHPLJKWEHHQMR\HGLQFRPPRQ

$QDEOHPDQLVDYDLODEOH+HLVOLNHDSXULILHGZHOOZKRVHZDWHULVGULQNDEOH

%XWQRXVHLVPDGHRIKLP7KLVLVWKHVRUURZRIWKRVHZKRNQRZKLP2QH

ZLVKHVWKDWWKHSULQFHPLJKWOHDUQDERXWLWWKLVZRXOGEHJRRGIRUWXQHIRUDOO

FRQFHUQHG

6L[LQWKHIRXUWKSODFHPHDQV

7KHZHOOLVEHLQJOLQHG1REODPH

7UXHLIDZHOOLVEHLQJOLQHGZLWKVRQHLWFDQQRWEHXVHGZKLOHWKHZRUNLV

JRLQJRQ%XWWKHZRUNLVQRWLQYDLQWKHUHVXOWLVWKDWWKHZDWHUVWD\VFOHDU

,QOLIHDOVRWKHUHDUHWLPHVZKHQDPDQPXVWSXWKLPVHOILQRUGHU'XULQJ

VXFKDWLPHKHFDQGRQRWKLQJIRURWKHUVEXWKLVZRUNLVQRQHWKHOHVV

YDOXDEOHEHFDXVHE\HQKDQFLQJKLVSRZHUVDQGDELOLWLHVWKURXJKLQQHU

GHYHORSPHQWKHFDQDFFRPSOLVKDOOWKHPRUHODWHURQ

ƒ1LQHLQWKHILIWKSODFHPHDQV

,QWKHZHOOWKHUHLVDFOHDUFROGVSULQJ

)URPZKLFKRQHFDQGULQN

$ZHOOWKDWLVIHGE\DVSULQJRIOLYLQJZDWHULVDJRRGZHOO$PDQZKRKDV

YLUWXHVOLNHDZHOORIWKLVVRUWLVERUQWREHDOHDGHUDQGVDYLRURIPHQIRUKH

KDVWKHZDWHURIOLIH1HYHUWKHOHVVWKHFKDUDFWHUIRUJRRGIRUWXQHLVOHIWRXW

KHUH7KHDOOLPSRUWDQWWKLQJDERXWDZHOOLVWKDWLWVZDWHUEHGUDZQ7KH

EHVWZDWHULVRQO\DSRWHQWLDOLW\IRUUHIUHVKPHQWDVORQJDVLWLVQRWEURXJKWXS

6RWRRZLWKOHDGHUVRIPDQNLQGLWLVDOOLPSRUWDQWWKDWRQHVKRXOGGULQN

IURPWKHVSULQJRIWKHLUZRUGVDQGWUDQVODWHWKHPLQWROLIH

6L[DWWKHWRSPHDQV

2QHGUDZVIURPWKHZHOO

:LWKRXWKLQGUDQFH

,WLVGHSHQGDEOH

6XSUHPHJRRGIRUWXQH

7KHZHOOLVWKHUHIRUHDOO1RRQHLVIRUELGGHQWRWDNHZDWHUIURPLW1R

PDWWHUKRZPDQ\FRPHDOOILQGZKDWWKH\QHHGIRUWKHZHOOLVGHSHQGDEOH,W

KDVDVSULQJDQGQHYHUUXQVGU\7KHUHIRUHLWLVDJUHDWEOHVVLQJWRWKHZKROH

ODQG7KHVDPHLVWUXHRIWKHUHDOO\JUHDWPDQZKRVHLQQHUZHDOWKLV

LQH[KDXVWLEOHWKHPRUHWKDWSHRSOHGUDZIURPKLPWKHJUHDWHUKLVZHDOWK

EHFRPHV

LQGH[

background image

.R5HYROXWLRQ0ROWLQJ

DERYH78,7+(-2<286/$.(

EHORZ/,7+(&/,1*,1*),5(

7KH&KLQHVHFKDUDFWHUIRUWKLVKH[DJUDPPHDQVLQLWVRULJLQDOVHQVHDQ

DQLPDOVSHOWZKLFKLVFKDQJHGLQWKHFRXUVHRIWKH\HDUE\PROWLQJ)URP

WKLVZRUGLVFDUULHGRYHUWRDSSO\WRWKHPROWLQJVLQSROLWLFDOOLIHWKHJUHDW

UHYROXWLRQVFRQQHFWHGZLWKFKDQJHVRIJRYHUQPHQWV

7KHWZRWULJUDPVPDNLQJXSWKHKH[DJUDPDUHWKHVDPHWZRWKDWDSSHDULQ

.XHL23326,7,21WKDWLVWKHWZR\RXQJHUGDXJKWHUV/LDQG7XL%XW

ZKLOHWKHUHWKHHOGHURIWKHWZRGDXJKWHUVLVDERYHDQGZKDWUHVXOWVLV

HVVHQWLDOO\RQO\DQRSSRVLWLRQRIWHQGHQFLHVKHUHWKH\RXQJHUGDXJKWHULV

DERYH7KHLQIOXHQFHVDUHLQDFWXDOFRQIOLFWDQGWKHIRUFHVFRPEDWHDFKRWKHU

OLNHILUHDQGZDWHUODNHHDFKWU\LQJWRGHVWUR\WKHRWKHU+HQFHWKHLGHDRI

UHYROXWLRQ

7+(-8'*0(17

5(92/87,212Q\RXURZQGD\

<RXDUHEHOLHYHG

6XSUHPHVXFFHVV

)XUWKHULQJWKURXJKSHUVHYHUDQFH

5HPRUVHGLVDSSHDUV

3ROLWLFDOUHYROXWLRQVDUHH[WUHPHO\JUDYHPDWWHUV7KH\VKRXOGEHXQGHUWDNHQ

RQO\XQGHUVWUHVVRIGLUHVWQHFHVVLW\ZKHQWKHUHLVQRRWKHUZD\RXW1RW

HYHU\RQHLVFDOOHGWRWKLVWDVNEXWRQO\WKHPDQZKRKDVWKHFRQILGHQFHRI

WKHSHRSOHDQGHYHQKHRQO\ZKHQWKHWLPHLVULSH+HPXVWWKHQSURFHHGLQ

WKHULJKWZD\VRWKDWKHJODGGHQVWKHSHRSOHDQGE\HQOLJKWHQLQJWKHP

SUHYHQWVH[FHVVHV)XUWKHUPRUHKHPXVWEHTXLWHIUHHRIVHOILVKDLPVDQG

PXVWUHDOO\UHOLHYHWKHQHHGRIWKHSHRSOH2QO\WKHQGRHVKHKDYHQRWKLQJWR

UHJUHW

7LPHVFKDQJHDQGZLWKWKHPWKHLUGHPDQGV7KXVWKHVHDVRQVFKDQJHLQ

WKHFRXUVHRIWKH\HDU,QWKHZRUOGF\FOHDOVRWKHUHDUHVSULQJDQGDXWXPQLQ

WKHOLIHRISHRSOHVDQGQDWLRQVDQGWKHVHFDOOIRUVRFLDOWUDQVIRUPDWLRQV

7+(,0$*(

)LUHLQWKHODNHWKHLPDJHRI5(92/87,21

7KXVWKHVXSHULRUPDQ

6HWVWKHFDOHQGDULQRUGHU

$QGPDNHVWKHVHDVRQVFOHDU

)LUHEHORZDQGWKHODNHDERYHFRPEDWDQGGHVWUR\HDFKRWKHU6RWRRLQWKH

FRXUVHRIWKH\HDUDFRPEDWWDNHVSODFHEHWZHHQWKHIRUFHVRIOLJKWDQGWKH

IRUFHVRIGDUNQHVVHYHQWXDWLQJLQWKHUHYROXWLRQRIWKHVHDVRQVDQGPDQLV

background image

DEOHWRDGMXVWKLPVHOILQDGYDQFHWRWKHGHPDQGVRIWKHGLIIHUHQWWLPHV

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

:UDSSHGLQWKHKLGHRID\HOORZFRZ

&KDQJHVRXJKWWREHXQGHUWDNHQRQO\ZKHQWKHUHLVQRWKLQJHOVHWREHGRQH

7KHUHIRUHDWILUVWWKHXWPRVWUHVWUDLQWLVQHFHVVDU\2QHPXVWEHFRPHVILUPLQ

RQHVPLQGFRQWURORQHVHOI\HOORZLVWKHFRORURIWKHPHDQVDQGWKHFRZLV

WKHV\PERORIGRFLOLW\DQGUHIUDLQIURPGRLQJDQ\WKLQJIRUWKHWLPHEHLQJ

EHFDXVHDQ\SUHPDWXUHRIIHQVLYHZLOOEULQJHYLOUHVXOWV

6L[LQWKHVHFRQGSODFHPHDQV

:KHQRQHVRZQGD\FRPHVRQHPD\FUHDWHUHYROXWLRQ

6WDUWLQJEULQJVJRRGIRUWXQH1REODPH

:KHQZHKDYHWULHGLQHYHU\RWKHUZD\WREULQJDERXWUHIRUPVEXWZLWKRXW

VXFFHVVUHYROXWLRQEHFRPHVQHFHVVDU\%XWVXFKDWKRURXJKJRLQJXSKHDYDO

PXVWEHFDUHIXOO\SUHSDUHG7KHUHPXVWEHDYDLODEOHDPDQZKRKDVWKH

UHTXLVLWHDELOLWLHVDQGZKRSRVVHVVHVSXEOLFFRQILGHQFH7RVXFKDPDQZH

PD\ZHOOWXUQ7KLVEULQJVJRRGIRUWXQHDQGLVQRWDPLVWDNH7KHILUVWWKLQJ

WREHFRQVLGHUHGLVRXULQQHUDWWLWXGHWRZDUGWKHQHZFRQGLWLRQWKDWZLOO

LQHYLWDEO\FRPH:HKDYHWRJRRXWWRPHHWLWDVLWZHUH2QO\LQWKLVZD\

FDQLWEHSUHSDUHGIRU

1LQHLQWKHWKLUGSODFHPHDQV

6WDUWLQJEULQJVPLVIRUWXQH

3HUVHYHUDQFHEULQJVGDQJHU

:KHQWDONRIUHYROXWLRQKDVJRQHWKHURXQGVWKUHHWLPHV

2QHPD\FRPPLWKLPVHOI

$QGPHQZLOOEHOLHYHKLP

:KHQFKDQJHLVQHFHVVDU\WKHUHDUHWZRPLVWDNHVWREHDYRLGHG2QHOLHVLQ

H[FHVVLYHKDVWHDQGUXWKOHVVQHVVZKLFKEULQJGLVDVWHU7KHRWKHUOLHVLQ

H[FHVVLYHKHVLWDWLRQDQGFRQVHUYDWLVPZKLFKDUHDOVRGDQJHURXV1RWHYHU\

GHPDQGIRUFKDQJHLQWKHH[LVWLQJRUGHUVKRXOGEHKHHGHG2QWKHRWKHU

KDQGUHSHDWHGDQGZHOOIRXQGHGFRPSODLQWVVKRXOGQRWIDLORIDKHDULQJ

:KHQWDONRIFKDQJHKDVFRPHWRRQHVHDUVWKUHHWLPHVDQGKDVEHHQ

SRQGHUHGZHOOKHPD\EHOLHYHDQGDFTXLHVFHLQLW7KHQKHZLOOPHHWZLWK

EHOLHIDQGZLOODFFRPSOLVKVRPHWKLQJ

1LQHLQWKHIRXUWKSODFHPHDQV

5HPRUVHGLVDSSHDUV0HQEHOLHYHKLP

&KDQJLQJWKHIRUPRIJRYHUQPHQWEULQJVJRRGIRUWXQH

5DGLFDOFKDQJHVUHTXLUHDGHTXDWHDXWKRULW\$PDQPXVWKDYHLQQHUVWUHQJWK

DVZHOODVLQIOXHQWLDOSRVLWLRQ:KDWKHGRHVPXVWFRUUHVSRQGZLWKDKLJKHU

background image

WUXWKDQGPXVWQRWVSULQJIURPDUELWUDU\RUSHWW\PRWLYHVWKHQLWEULQJVJUHDW

JRRGIRUWXQH,IDUHYROXWLRQLVQRWIRXQGHGRQVXFKLQQHUWUXWKWKHUHVXOWV

DUHEDGDQGLWKDVQRVXFFHVV)RULQWKHHQGPHQZLOOVXSSRUWRQO\WKRVH

XQGHUWDNLQJVZKLFKWKH\IHHOLQVWLQFWLYHO\WREHMXVW

ƒ1LQHLQWKHILIWKSODFHPHDQV

7KHJUHDWPDQFKDQJHVOLNHDWLJHU

(YHQEHIRUHKHTXHVWLRQVWKHRUDFOH

+HLVEHOLHYHG

$WLJHUVNLQZLWKLWVKLJKO\YLVLEOHEODFNVWULSHVRQD\HOORZJURXQGVKRZVLWV

GLVWLQFWSDWWHUQIURPDIDU,WLVWKHVDPHZLWKDUHYROXWLRQEURXJKWDERXWE\D

JUHDWPDQODUJHFOHDUJXLGLQJOLQHVEHFRPHYLVLEOHXQGHUVWDQGDEOHWR

HYHU\RQH7KHUHIRUHKHQHHGQRWILUVWFRQVXOWWKHRUDFOHIRUKHZLQVWKH

VSRQWDQHRXVVXSSRUWRIWKHSHRSOH

6L[DWWKHWRSPHDQV

7KHVXSHULRUPDQFKDQJHVOLNHDSDQWKHU

7KHLQIHULRUPDQPROWVLQWKHIDFH

6WDUWLQJEULQJVPLVIRUWXQH

7RUHPDLQSHUVHYHULQJEULQJVJRRGIRUWXQH

$IWHUWKHODUJHDQGIXQGDPHQWDOSUREOHPVDUHVHWWOHGFHUWDLQPLQRUUHIRUPV

DQGHODERUDWLRQVRIWKHVHDUHQHFHVVDU\7KHVHGHWDLOHGUHIRUPVPD\EH

OLNHQHGWRWKHHTXDOO\GLVWLQFWEXWUHODWLYHO\VPDOOPDUNVRIWKHSDQWKHUVFRDW

$VDFRQVHTXHQFHDFKDQJHDOVRWDNHVSODFHDPRQJWKHLQIHULRUSHRSOH,Q

FRQIRUPLW\ZLWKWKHQHZRUGHUWKH\OLNHZLVHPROW7KLVPROWLQJLWLVWUXH

GRHVQRWJRYHU\GHHSEXWWKDWLVQRWWREHH[SHFWHG:HPXVWEHVDWLVILHG

ZLWKWKHDWWDLQDEOH,IZHVKRXOGJRWRRIDUDQGWU\WRDFKLHYHWRRPXFKLW

ZRXOGOHDGWRXQUHVWDQGPLVIRUWXQH)RUWKHREMHFWRIDJUHDWUHYROXWLRQLV

WKHDWWDLQPHQWRIFODULILHGVHFXUHFRQGLWLRQVHQVXULQJDJHQHUDOVWDELOL]DWLRQ

RQWKHEDVLVRIZKDWLVSRVVLEOHDWWKHPRPHQW

LQGH[

7LQJ7KH&DOGURQ

DERYH/,7+(&/,1*,1*),5(

EHORZ6817+(*(17/(:,1':22'

7KHVL[OLQHVFRQVWUXFWWKHLPDJHRI7LQJ7+(&$/'521DWWKHERWWRPDUH

WKHOHJVRYHUWKHPWKHEHOO\WKHQFRPHWKHHDUVKDQGOHVDQGDWWKHWRSWKH

FDUU\LQJULQJV$WWKHVDPHWLPHWKHLPDJHVXJJHVWVWKHLGHDRIQRXULVKPHQW

7KHWLQJFDVWRIEURQ]HZDVWKHYHVVHOWKDWKHOGWKHFRRNHGYLDQGVLQWKH

WHPSOHRIWKHDQFHVWRUVDQGDWEDQTXHWV7KHKHDGVRIWKHIDPLO\VHUYHGWKH

IRRGIURPWKHWLQJLQWRWKHERZOVRIWKHJXHVWV

7+(:(//OLNHZLVHKDVWKHVHFRQGDU\PHDQLQJRIJLYLQJQRXULVKPHQW

background image

EXWUDWKHUPRUHLQUHODWLRQWRWKHSHRSOH7KHWLQJDVDXWHQVLOSHUWDLQLQJWR

DUHILQHGFLYLOL]DWLRQVXJJHVWVWKHIRVWHULQJDQGQRXULVKLQJRIDEOHPHQ

ZKLFKUHGRXQGHGWRWKHEHQHILWRIWKHVWDWH

7KLVKH[DJUDPDQG7+(:(//DUHWKHRQO\WZRLQWKH%RRNRI&KDQJHVWKDW

UHSUHVHQWFRQFUHWHPHQPDGHREMHFWV<HWKHUHWRRWKHWKRXJKWKDVLWV

DEVWUDFWFRQQRWDWLRQ

6XQEHORZLVZRRGDQGZLQG/LDERYHLVIODPH7KXVWRJHWKHUWKH\VWDQG

IRUWKHIODPHNLQGOHGE\ZRRGDQGZLQGZKLFKOLNHZLVHVXJJHVWVWKHLGHDRI

SUHSDULQJIRRG

7+(-8'*0(17

7+(&$/'5216XSUHPHJRRGIRUWXQH

6XFFHVV

:KLOH7+(:(//UHODWHVWRWKHVRFLDOIRXQGDWLRQRIRXUOLIHDQGWKLV

IRXQGDWLRQLVOLNHQHGWRWKHZDWHUWKDWVHUYHVWRQRXULVKJURZLQJZRRGWKH

SUHVHQWKH[DJUDPUHIHUVWRWKHFXOWXUDOVXSHUVWUXFWXUHRIVRFLHW\+HUHLWLV

WKHZRRGWKDWVHUYHVDVQRXULVKPHQWIRUWKHIODPHWKHVSLULW$OOWKDWLV

YLVLEOHPXVWJURZEH\RQGLWVHOIH[WHQGLQWRWKHUHDOPRIWKHLQYLVLEOH

7KHUHE\LWUHFHLYHVLWVWUXHFRQVHFUDWLRQDQGFODULW\DQGWDNHVILUPURRWLQWKH

FRVPLFRUGHU

+HUHZHVHHFLYLOL]DWLRQDVLWUHDFKHVLWVFXOPLQDWLRQLQUHOLJLRQ7KHWLQJ

VHUYHVLQRIIHULQJVDFULILFHWR*RG7KHKLJKHVWHDUWKO\YDOXHVPXVWEH

VDFULILFHGWRWKHGLYLQH%XWWKHWUXO\GLYLQHGRHVQRWPDQLIHVWLWVHOIDSDUW

IURPPDQ7KHVXSUHPHUHYHODWLRQRI*RGDSSHDUVLQSURSKHWVDQGKRO\

PHQ7RYHQHUDWHWKHPLVWUXHYHQHUDWLRQRI*RG7KHZLOORI*RGDV

UHYHDOHGWKURXJKWKHPVKRXOGEHDFFHSWHGLQKXPLOLW\WKLVEULQJVLQQHU

HQOLJKWHQPHQWDQGWUXHXQGHUVWDQGLQJRIWKHZRUOGDQGWKLVOHDGVWRJUHDW

JRRGIRUWXQHDQGVXFFHVV

7+(,0$*(

)LUHRYHUZRRG

7KHLPDJHRI7+(&$/'521

7KXVWKHVXSHULRUPDQFRQVROLGDWHVKLVIDWH

%\PDNLQJKLVSRVLWLRQFRUUHFW

7KHIDWHRIILUHGHSHQGVRQZRRGDVORQJDVWKHUHLVZRRGEHORZWKHILUH

EXUQVDERYH,WLVWKHVDPHLQKXPDQOLIHWKHUHLVLQPDQOLNHZLVHDIDWHWKDW

OHQGVSRZHUWRKLVOLIH$QGLIKHVXFFHHGVLQDVVLJQLQJWKHULJKWSODFHWROLIH

DQGWRIDWHWKXVEULQJLQJWKHWZRLQWRKDUPRQ\KHSXWVKLVIDWHRQDILUP

IRRWLQJ7KHVHZRUGVFRQWDLQKLQWVDERXWIRVWHULQJRIOLIHDVKDQGHGRQE\

RUDOWUDGLWLRQLQWKHVHFUHWWHDFKLQJVRI&KLQHVH\RJD

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

background image

$WLQJZLWKOHJVXSWXUQHG

)XUWKHUVUHPRYDORIVWDJQDWLQJVWXII

2QHWDNHVDFRQFXELQHIRUWKHVDNHRIKHUVRQ

1REODPH

,IDWLQJLVWXUQHGXSVLGHGRZQEHIRUHEHLQJXVHGQRKDUPLVGRQHRQWKH

FRQWUDU\WKLVFOHDUVLWRIUHIXVH$FRQFXELQHVSRVLWLRQLVORZO\EXWEHFDXVH

VKHKDVDVRQVKHFRPHVWREHKRQRUHG

7KHVHWZRPHWDSKRUVH[SUHVVWKHLGHDWKDWLQDKLJKO\GHYHORSHG

FLYLOL]DWLRQVXFKDVWKDWLQGLFDWHGE\WKLVKH[DJUDPHYHU\SHUVRQRIJRRG

ZLOOFDQLQVRPHZD\RURWKHUVXFFHHG1RPDWWHUKRZORZO\KHPD\EH

SURYLGHGKHLVUHDG\WRSXULI\KLPVHOIKHLVDFFHSWHG+HDWWDLQVDVWDWLRQLQ

ZKLFKKHFDQSURYHKLPVHOIIUXLWIXOLQDFFRPSOLVKPHQWDQGDVDUHVXOWKH

JDLQVUHFRJQLWLRQ

1LQHLQWKHVHFRQGSODFHPHDQV

7KHUHLVIRRGLQWKHWLQJ

0\FRPUDGHVDUHHQYLRXV

%XWWKH\FDQQRWKDUPPH

*RRGIRUWXQH

,QDSHULRGRIDGYDQFHGFXOWXUHLWLVRIWKHJUHDWHVWLPSRUWDQFHWKDWRQH

VKRXOGDFKLHYHVRPHWKLQJVLJQLILFDQW,IDPDQFRQFHQWUDWHVRQVXFKUHDO

XQGHUWDNLQJVKHPD\LQGHHGH[SHULHQFHHQY\DQGGLVIDYRUEXWWKDWLVQRW

GDQJHURXV7KHPRUHKHOLPLWVKLPVHOIWRKLVDFWXDODFKLHYHPHQWVWKHOHVV

KDUPWKHHQYLRXVLQIOLFWRQKLP

1LQHLQWKHWKLUGSODFHPHDQV

7KHKDQGOHRIWKHWLQJLVDOWHUHG

2QHLVLPSHGHGLQKLVZD\RIOLIH

7KHIDWRIWKHSKHDVDQWLVQRWHDWHQ

2QFHUDLQIDOOVUHPRUVHLVVSHQW

*RRGIRUWXQHFRPHVLQWKHHQG

7KHKDQGOHLVWKHPHDQVIRUOLIWLQJXSWKHWLQJ,IWKHKDQGOHLVDOWHUHGWKH

WLQJFDQQRWEHOLIWHGXSDQGXVHGDQGVDGWRVD\WKHGHOLFLRXVIRRGLQLW

VXFK

DVSKHDVDQWIDWFDQQRWEHHDWHQE\DQ\RQH

7KLVGHVFULEHVDPDQZKRLQDKLJKO\HYROYHGFLYLOL]DWLRQILQGVKLPVHOILQ

DSODFHZKHUHQRRQHQRWLFHVRUUHFRJQL]HVKLP7KLVLVDVHYHUHEORFNWRKLV

HIIHFWLYHQHVV$OORIKLVJRRGTXDOLWLHVDQGJLIWVRIPLQGWKXVQHHGOHVVO\JRWR

ZDVWH%XWLIKHZLOORQO\VHHWRLWWKDWKHLVSRVVHVVHGRIVRPHWKLQJWUXO\

VSLULWXDOWKHWLPHLVERXQGWRFRPHVRRQHURUODWHUZKHQWKHGLIILFXOWLHVZLOO

EHUHVROYHGDQGDOOZLOOJRZHOO7KHIDOORIUDLQV\PEROL]HVKHUHDVLQRWKHU

LQVWDQFHVUHOHDVHRIWHQVLRQ

1LQHLQWKHIRXUWKSODFHPHDQV

7KHOHJVRIWKHWLQJDUHEURNHQ

background image

7KHSULQFHVPHDOLVVSLOOHG

$QGKLVSHUVRQLVVRLOHG

0LVIRUWXQH

$PDQKDVDGLIILFXOWDQGUHVSRQVLEOHWDVNWRZKLFKKHLVQRWDGHTXDWH

0RUHRYHUKHGRHVQRWGHYRWHKLPVHOIWRLWZLWKDOOKLVVWUHQJWKEXWJRHV

DERXWZLWKLQIHULRUSHRSOHWKHUHIRUHWKHH[HFXWLRQRIWKHZRUNIDLOV,QWKLV

ZD\KHDOVRLQFXUVSHUVRQDORSSUREULXP

&RQIXFLXVVD\VDERXWWKLVOLQH:HDNFKDUDFWHUFRXSOHGZLWKKRQRUHG

SODFHPHDJHUNQRZOHGJHZLWKODUJHSODQVOLPLWHGSRZHUVZLWKKHDY\

UHVSRQVLELOLW\ZLOOVHOGRPHVFDSHGLVDVWHU

ƒ6L[LQWKHILIWKSODFHPHDQV

7KHWLQJKDV\HOORZKDQGOHVJROGHQFDUU\LQJULQJV

3HUVHYHUDQFHIXUWKHUV

+HUHZHKDYHLQDUXOLQJSRVLWLRQDPDQZKRLVDSSURDFKDEOHDQGPRGHVWLQ

QDWXUH$VDUHVXOWRIWKLVDWWLWXGHKHVXFFHHGVLQILQGLQJVWURQJDQGDEOH

KHOSHUVZKRFRPSOHPHQWDQGDLGKLPLQKLVZRUN+DYLQJDFKLHYHGWKLV

DWWLWXGHZKLFKUHTXLUHVFRQVWDQWVHOIDEQHJDWLRQLWLVLPSRUWDQWIRUKLPWR

KROGWRLWDQGQRWWROHWKLPVHOIEHOHGDVWUD\

ƒ1LQHDWWKHWRSPHDQV

7KHWLQJKDVULQJVRIMDGH

*UHDWJRRGIRUWXQH

1RWKLQJWKDWZRXOGQRWDFWWRIXUWKHU

,QWKHSUHFHGLQJOLQHWKHFDUU\LQJULQJVDUHGHVFULEHGDVJROGHQWRGHQRWH

WKHLU

VWUHQJWKKHUHWKH\DUHVDLGWREHRIMDGH-DGHLVQRWDEOHIRULWVFRPELQDWLRQ

RI

KDUGQHVVZLWKVRIWOXVWHU7KLVFRXQVHOLQUHODWLRQWRWKHPDQZKRLVRSHQWR

LWZRUNVJUHDWO\WKLVDGYDQWDJH+HUHWKHFRXQVHOLVGHVFULEHGLQUHODWLRQWR

WKHVDJHZKRLPSDUWVLW,QLPSDUWLQJLWKHZLOOEHPLOGDQGSXUHOLNH

SUHFLRXVMDGH7KXVWKHZRUNILQGVIDYRULQWKHH\HVRIWKH'HLW\ZKR

GLVSHQVHVJUHDWJRRGIRUWXQHDQGEHFRPHVSOHDVLQJWRPHQZKHUHIRUHDOO

JRHVZHOO

LQGH[

&KrQ7KH$URXVLQJ6KRFN7KXQGHU

DERYH&+r17+($5286,1*7+81'(5

EHORZ&+r17+($5286,1*7+81'(5

7KHKH[DJUDP&KrQUHSUHVHQWVWKHHOGHVWVRQZKRVHL]HVUXOHZLWKHQHUJ\

DQGSRZHU$\DQJOLQHGHYHORSVEHORZWZR\LQOLQHVDQGSUHVVHVXSZDUG

background image

IRUFLEO\7KLVPRYHPHQWLVVRYLROHQWWKDWLWDURXVHVWHUURU,WLVV\PEROL]HG

E\WKXQGHUZKLFKEXUVWVIRUWKIURPWKHHDUWKDQGE\LWVVKRFNFDXVHVIHDUDQG

WUHPEOLQJ

7+(-8'*0(17

6+2&.EULQJVVXFFHVV

6KRFNFRPHVRKRK

/DXJKLQJZRUGVKDKD

7KHVKRFNWHUULILHVIRUDKXQGUHGPLOHV

$QGKHGRHVQRWOHWIDOOWKHVDFULILFLDOVSRRQDQGFKDOLFH

7KHVKRFNWKDWFRPHVIURPWKHPDQLIHVWDWLRQRI*RGZLWKLQWKHGHSWKVRIWKH

HDUWKPDNHVPDQDIUDLGEXWWKLVIHDURI*RGLVJRRGIRUMR\DQGPHUULPHQW

FDQIROORZXSRQLW

:KHQDPDQKDVOHDUQHGZLWKLQKLVKHDUWZKDWIHDUDQGWUHPEOLQJPHDQ

KHLVVDIHJXDUGHGDJDLQVWDQ\WHUURUSURGXFHGE\RXWVLGHLQIOXHQFHV/HWWKH

WKXQGHUUROODQGVSUHDGWHUURUDKXQGUHGPLOHVDURXQGKHUHPDLQVVR

FRPSRVHGDQGUHYHUHQWLQVSLULWWKDWWKHVDFULILFLDOULWHLVQRWLQWHUUXSWHG

7KLVLVWKHVSLULWWKDWPXVWDQLPDWHOHDGHUVDQGUXOHUVRIPHQDSURIRXQG

LQQHUVHULRXVQHVVIURPZKLFKDOOWHUURUVJODQFHRIIKDUPOHVVO\

7+(,0$*(

7KXQGHUUHSHDWHGWKHLPDJHRI6+2&.

7KXVLQIHDUDQGWUHPEOLQJ

7KHVXSHULRUPDQVHWVKLVOLIHLQRUGHU

$QGH[DPLQHVKLPVHOI

7KHVKRFNRIFRQWLQXLQJWKXQGHUEULQJVIHDUDQGWUHPEOLQJ7KHVXSHULRU

PDQLVDOZD\VILOOHGZLWKUHYHUHQFHDWWKHPDQLIHVWDWLRQRI*RGKHVHWVKLV

OLIHLQRUGHUDQGVHDUFKHVKLVKHDUWOHVWLWKDUERUDQ\VHFUHWRSSRVLWLRQWRWKH

ZLOORI*RG7KXVUHYHUHQFHLVWKHIRXQGDWLRQRIWUXHFXOWXUH

7+(/,1(6

ƒ1LQHDWWKHEHJLQQLQJPHDQV

6KRFNFRPHVRKRK

7KHQIROORZODXJKLQJZRUGVKDKD

*RRGIRUWXQH

7KHIHDUDQGWUHPEOLQJHQJHQGHUHGE\VKRFNFRPHWRDQLQGLYLGXDODWILUVWLQ

VXFKDZD\WKDWKHVHHVKLPVHOISODFHGDWDGLVDGYDQWDJHDVDJDLQVWRWKHUV

%XW

WKLVLVRQO\WUDQVLWRU\:KHQWKHRUGHDOLVRYHUKHH[SHULHQFHVUHOLHIDQG

WKXVWKHYHU\WHUURUKHKDGWRHQGXUHDWWKHRXWVHWEULQJVJRRGIRUWXQHLQWKH

ORQJUXQ

background image

6L[LQWKHVHFRQGSODFHPHDQV

6KRFNFRPHVEULQJLQJGDQJHU

$KXQGUHGWKRXVDQGWLPHV

<RXORVH\RXUWUHDVXUHV

$QGPXVWFOLPEWKHQLQHKLOOV

'RQRWJRLQSXUVXLWRIWKHP

$IWHUVHYHQGD\V\RXZLOOJHWWKHPEDFNDJDLQ

7KLVSLFWXUHVDVLWXDWLRQLQZKLFKDVKRFNHQGDQJHUVDPDQDQGKHVXIIHUV

JUHDWORVVHV5HVLVWDQFHZRXOGEHFRQWUDU\WRWKHPRYHPHQWRIWKHWLPHDQG

IRUWKLVUHDVRQXQVXFFHVVIXO7KHUHIRUHKHPXVWVLPSO\UHWUHDWWRKHLJKWV

LQDFFHVVLEOHWRWKHWKUHDWHQLQJIRUFHVRIGDQJHU+HPXVWDFFHSWKLVORVVRI

SURSHUW\ZLWKRXWZRUU\LQJWRRPXFKDERXWLW:KHQWKHWLPHRIVKRFNDQG

XSKHDYDOWKDWKDVUREEHGKLPRIKLVSRVVHVVLRQVKDVSDVVHGKHZLOOJHWWKHP

EDFNDJDLQZLWKRXWJRLQJLQSXUVXLWRIWKHP

6L[LQWKHWKLUGSODFHPHDQV

6KRFNFRPHVDQGPDNHVRQHGLVWUDXJKW

,IVKRFNVSXUVWRDFWLRQ

2QHUHPDLQVIUHHRIPLVIRUWXQH

7KHUHDUHWKUHHNLQGVRIVKRFNWKHVKRFNRIKHDYHQZKLFKLVWKXQGHUWKH

VKRFNRIIDWHDQGILQDOO\WKHVKRFNRIWKHKHDUW7KHSUHVHQWKH[DJUDPUHIHUV

OHVVWRLQQHUVKRFNWKDQWRWKHVKRFNRIIDWH,QVXFKWLPHVRIVKRFNSUHVHQFH

RIPLQGLVDOOWRRHDVLO\ORVWWKHLQGLYLGXDORYHUORRNVDOORSSRUWXQLWLHVIRU

DFWLRQDQGPXWHO\OHWVIDWHWDNHLWVFRXUVH%XWLIKHDOORZVWKHVKRFNVRIIDWH

WRLQGXFHPRYHPHQWZLWKLQKLVPLQGKHZLOORYHUFRPHWKHVHH[WHUQDOEORZV

ZLWKOLWWOHHIIRUW

1LQHLQWKHIRXUWKSODFHPHDQV

6KRFNLVPLUHG

0RYHPHQWZLWKLQWKHPLQGGHSHQGVIRULWVVXFFHVVSDUWO\RQFLUFXPVWDQFHV

,IWKHUHLVQHLWKHUDUHVLVWDQFHWKDWPLJKWEHYLJRURXVO\FRPEDWHGQRU\HWD

\LHOGLQJWKDWSHUPLWVRIYLFWRU\LILQVWHDGHYHU\WKLQJLVWRXJKDQGLQHUWOLNH

PLUHPRYHPHQWLVFULSSOHG

6L[LQWKHILIWKSODFHPHDQV

6KRFNJRHVKLWKHUDQGWKLWKHU

'DQJHU

+RZHYHUQRWKLQJDWDOOLVORVW

<HWWKHUHDUHWKLQJVWREHGRQH

7KLVLVDFDVHQRWRIDVLQJOHVKRFNEXWRIUHSHDWHGVKRFNVZLWKQREUHDWKLQJ

VSDFHEHWZHHQ1RQHWKHOHVVWKHVKRFNFDXVHVQRORVVEHFDXVHRQHWDNHVFDUH

WRVWD\LQWKHFHQWHURIPRYHPHQWDQGLQWKLVZD\WREHVSDUHGWKHIDWHRI

EHLQJKHOSOHVVO\WRVVHGKLWKHUDQGWKLWKHU

background image

6L[DWWKHWRSPHDQV

6KRFNEULQJVUXLQDQGWHUULILHGJD]LQJDURXQG

*RLQJDKHDGEULQJVPLVIRUWXQH

,ILWKDVQRW\HWWRXFKHGRQHVRZQERG\

%XWKDVUHDFKHGRQHVQHLJKERUILUVW

7KHUHLVQREODPH

2QHVFRPUDGHVKDYHVRPHWKLQJWRWDONDERXW

:KHQLQQHUVKRFNLVDWLWVKHLJKWLWUREVDPDQRIUHIOHFWLRQDQGFODULW\RI

YLVLRQ,QVXFKDVWDWHRIVKRFNLWLVRIFRXUVHLPSRVVLEOHWRDFWZLWKSUHVHQFH

RIPLQG7KHQWKHULJKWWKLQJLVWRNHHSVWLOOXQWLOFRPSRVXUHDQGFODULW\DUH

UHVWRUHG%XWWKLVDPDQFDQGRRQO\ZKHQKHKLPVHOILVQRW\HWLQIHFWHGE\

WKHDJLWDWLRQDOWKRXJKLWVGLVDVWURXVHIIHFWVDUHDOUHDG\YLVLEOHLQWKRVH

DURXQGKLP,IKHZLWKGUDZVIURPWKHDIIDLULQWLPHKHUHPDLQVIUHHRI

PLVWDNHVDQGLQMXU\%XWKLVFRPUDGHVZKRQRORQJHUKHHGDQ\ZDUQLQJ

ZLOOLQWKHLUH[FLWHPHQWFHUWDLQO\EHGLVSOHDVHGZLWKKLP+RZHYHUKHPXVW

QRWWDNHWKLVLQWRDFFRXQW

LQGH[

.rQ.HHSLQJ6WLOO0RXQWDLQ

DERYH.r1.((3,1*67,//02817$,1

EHORZ.r1.((3,1*67,//02817$,1

7KHLPDJHRIWKLVKH[DJUDPLVWKHPRXQWDLQWKH\RXQJHVWVRQRIKHDYHQDQG

HDUWK7KHPDOHSULQFLSOHLVDWWKHWRSEHFDXVHLWVWULYHVXSZDUGE\QDWXUH

WKH

IHPDOHSULQFLSOHLVEHORZVLQFHWKHGLUHFWLRQRILWVPRYHPHQWKDVFRPHWRLWV

QRUPDOHQG

,QLWVDSSOLFDWLRQWRPDQWKHKH[DJUDPWXUQVXSRQWKHSUREOHPRI

DFKLHYLQJDTXLHWKHDUW,WLVYHU\GLIILFXOWWREULQJTXLHWWRWKHKHDUW:KLOH

%XGGKLVPVWULYHVIRUUHVWWKURXJKDQHEELQJDZD\RIDOOPRYHPHQWLQ

QLUYDQDWKH%RRNRI&KDQJHVKROGVWKDWUHVWLVPHUHO\DVWDWHRISRODULW\WKDW

DOZD\VSRVLWVPRYHPHQWDVLWVFRPSOHPHQW3RVVLEO\WKHZRUGVRIWKHWH[W

HPERG\GLUHFWLRQVIRUWKHSUDFWLFHRI\RJD

7+(-8'*0(17

.((3,1*67,//.HHSLQJKLVEDFNVWLOO

6RWKDWKHQRORQJHUIHHOVKLVERG\

+HJRHVLQWRKLVFRXUW\DUG

$QGGRHVQRWVHHKLVSHRSOH

1REODPH

7UXHTXLHWPHDQVNHHSLQJVWLOOZKHQWKHWLPHKDVFRPHWRNHHSVWLOODQG

JRLQJIRUZDUGZKHQWKHWLPHKDVFRPHWRJRIRUZDUG,QWKLVZD\UHVWDQG

background image

PRYHPHQWDUHLQDJUHHPHQWZLWKWKHGHPDQGVRIWKHWLPHDQGWKXVWKHUHLV

OLJKWLQOLIH

7KHKH[DJUDPVLJQLILHVWKHHQGDQGWKHEHJLQQLQJRIDOOPRYHPHQW7KH

EDFNLVQDPHGEHFDXVHLQWKHEDFNDUHORFDWHGDOOWKHQHUYHILEHUVWKDW

PHGLDWH

PRYHPHQW,IWKHPRYHPHQWRIWKHVHVSLQDOQHUYHVLVEURXJKWWRDVWDQGVWLOO

WKHHJRZLWKLWVUHVWOHVVQHVVGLVDSSHDUVDVLWZHUH:KHQDPDQKDVWKXV

EHFRPHFDOPKHPD\WXUQWRWKHRXWVLGHZRUOG+HQRORQJHUVHHVLQLWWKH

VWUXJJOHDQGWXPXOWRILQGLYLGXDOEHLQJVDQGWKHUHIRUHKHKDVWKDWWUXHSHDFH

RIPLQGZKLFKLVQHHGHGIRUXQGHUVWDQGLQJWKHJUHDWODZVRIWKHXQLYHUVH

DQGIRUDFWLQJLQKDUPRQ\ZLWKWKHP:KRHYHUDFWVIURPWKHVHGHHSOHYHOV

PDNHVQRPLVWDNHV

7+(,0$*(

0RXQWDLQVVWDQGLQJFORVHWRJHWKHU

7KHLPDJHRI.((3,1*67,//

7KXVWKHVXSHULRUPDQ

'RHVQRWSHUPLWKLVWKRXJKWV

7RJREH\RQGKLVVLWXDWLRQ

7KHKHDUWWKLQNVFRQVWDQWO\7KLVFDQQRWEHFKDQJHGEXWWKHPRYHPHQWVRI

WKHKHDUWWKDWLVDPDQVWKRXJKWVVKRXOGUHVWULFWWKHPVHOYHVWRWKH

LPPHGLDWHVLWXDWLRQ$OOWKLQNLQJWKDWJRHVEH\RQGWKLVRQO\PDNHVWKHKHDUW

VRUH

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

.HHSLQJKLVWRHVVWLOO

1REODPH

&RQWLQXHGSHUVHYHUDQFHIXUWKHUV

.HHSLQJWKHWRHVVWLOOPHDQVKDOWLQJEHIRUHRQHKDVHYHQEHJXQWRPRYH7KH

EHJLQQLQJLVWKHWLPHRIIHZPLVWDNHV$WWKDWWLPHRQHLVVWLOOLQKDUPRQ\

ZLWKSULPDOLQQRFHQFH1RW\HWLQIOXHQFHGE\REVFXULQJLQWHUHVWVDQGGHVLUHV

RQHVHHVWKLQJVLQWXLWLYHO\DVWKH\UHDOO\DUH$PDQZKRKDOWVDWWKH

EHJLQQLQJVRORQJDVKHKDVQRW\HWDEDQGRQHGWKHWUXWKILQGVWKHULJKWZD\

%XWSHUVLVWLQJILUPQHVVLVQHHGHGWRNHHSRQHIURPGULIWLQJLUUHVROXWHO\

6L[LQHVHFRQGSODFHPHDQV

.HHSLQJKLVFDOYHVVWLOO

+HFDQQRWUHVFXHKLPZKRPKHIROORZV

+LVKHDUWLVQRWJODG

7KHOHJFDQQRWPRYHLQGHSHQGHQWO\LWGHSHQGVRQWKHPRYHPHQWRIWKH

ERG\,IDOHJLVVXGGHQO\VWRSSHGZKLOHWKHZKROHERG\LVLQYLJRURXV

PRWLRQWKHFRQWLQXLQJERG\PRYHPHQWZLOOPDNHRQHIDOO

background image

7KHVDPHLVWUXHRIDPDQZKRVHUYHVDPDVWHUVWURQJHUWKDQKLPVHOI+HLV

VZHSWDORQJDQGHYHQWKRXJKKHPD\KLPVHOIKDOWRQWKHSDWKRI

ZURQJGRLQJKHFDQQRORQJHUFKHFNWKHRWKHULQKLVSRZHUIXOPRYHPHQW

:KHUHWKHPDVWHUSUHVVHVIRUZDUGWKHVHUYDQWQRPDWWHUKRZJRRGKLV

LQWHQWLRQVFDQQRWVDYHKLP

1LQHLQWKHWKLUGSODFHPHDQV

.HHSLQJKLVKLSVVWLOO

0DNLQJKLVVDFUXPVWLII

'DQJHURXV7KHKHDUWVXIIRFDWHV

7KLVUHIHUVWRHQIRUFHGTXLHW7KHUHVWOHVVKHDUWLVWREHVXEGXHGE\IRUFLEOH

PHDQV%XWILUHZKHQLWLVVPRWKHUHGFKDQJHVLQWRDFULGVPRNHWKDW

VXIIRFDWHVDVLWVSUHDGV

7KHUHIRUHLQH[HUFLVHVLQPHGLWDWLRQDQGFRQFHQWUDWLRQRQHRXJKWQRWWR

WU\WRIRUFHUHVXOWV5DWKHUFDOPQHVVPXVWGHYHORSQDWXUDOO\RXWRIDVWDWHRI

LQQHUFRPSRVXUH,IRQHWULHVWRLQGXFHFDOPQHVVE\PHDQVRIDUWLILFLDO

ULJLGLW\PHGLWDWLRQZLOOOHDGWRYHU\XQZKROHVRPHUHVXOWV

6L[LQWKHIRXUWKSODFHPHDQV

.HHSLQJKLVWUXQNVWLOO

1REODPH

$VKDVEHHQSRLQWHGRXWDERYHLQWKHFRPPHQWRQWKH-XGJPHQWNHHSLQJWKH

EDFNDWUHVWPHDQVIRUJHWWLQJWKHHJR7KLVLVWKHKLJKHVWVWDJHRIUHVW+HUH

WKLVVWDJHKDVQRW\HWEHHQUHDFKHGWKHLQGLYLGXDOLQWKLVLQVWDQFHWKRXJK

DEOHWRNHHSWKHHJRZLWKLWVWKRXJKWVDQGLPSXOVHVLQDVWDWHRIUHVWLVQRW

\HWTXLWHOLEHUDWHGIURPLWVGRPLQDQFH1RQHWKHOHVVNHHSLQJWKHKHDUWDWUHVW

LVDQLPSRUWDQWIXQFWLRQOHDGLQJLQWKHHQGWRWKHFRPSOHWHHOLPLQDWLRQRI

HJRWLVWLFGULYHV(YHQWKRXJKDWWKLVSRLQWRQHGRHVQRW\HWUHPDLQIUHHIURP

DOOWKHGDQJHUVRIGRXEWDQGXQUHVWWKLVIUDPHRIPLQGLVQRWDPLVWDNHDVLW

OHDGVXOWLPDWHO\WRWKDWRWKHUKLJKHUOHYHO

6L[LQWKHILIWKSODFHPHDQV

.HHSLQJKLVMDZVVWLOO

7KHZRUGVKDYHRUGHU

5HPRUVHGLVDSSHDUV

$PDQLQDGDQJHURXVVLWXDWLRQHVSHFLDOO\ZKHQKHLVQRWDGHTXDWHWRLWLV

LQFOLQHGWREHYHU\IUHHZLWKWDONDQGSUHVXPSWXRXVMRNHV%XWLQMXGLFLRXV

VSHHFKHDVLO\OHDGVWRVLWXDWLRQVWKDWVXEVHTXHQWO\JLYHPXFKFDXVHIRUUHJUHW

+RZHYHULIDPDQLVUHVHUYHGLQVSHHFKKLVZRUGVWDNHHYHUPRUHGHILQLWH

IRUPDQGHYHU\RFFDVLRQIRUUHJUHWYDQLVKHV

ƒ1LQHDWWKHWRSPHDQV

1REOHKHDUWHGNHHSLQJVWLOO

*RRGIRUWXQH

background image

7KLVPDUNVWKHFRQVXPPDWLRQRIWKHHIIRUWWRDWWDLQWUDQTXLOOLW\2QHLVDW

UHVWQRWPHUHO\LQDVPDOOFLUFXPVFULEHGZD\LQUHJDUGWRPDWWHUVRIGHWDLO

EXWRQHKDVDOVRDJHQHUDOUHVLJQDWLRQLQUHJDUGWROLIHDVDZKROHDQGWKLV

FRQIHUVSHDFHDQGJRRGIRUWXQHLQUHODWLRQWRHYHU\LQGLYLGXDOPDWWHU

LQGH[

&KLHQ'HYHORSPHQW*UDGXDO3URJUHVV

DERYH6817+(*(17/(:,1':22'

EHORZ.r1.((3,1*67,//02817$,1

7KLVKH[DJUDPLVPDGHXSRI6XQZRRGSHQHWUDWLRQDERYHLHZLWKRXW

DQG.rQPRXQWDLQVWLOOQHVVEHORZLHZLWKLQ$WUHHRQDPRXQWDLQ

GHYHORSVVORZO\DFFRUGLQJWRWKHODZRILWVEHLQJDQGFRQVHTXHQWO\VWDQGV

ILUPO\URRWHG7KLVJLYHVWKHLGHDRIDGHYHORSPHQWWKDWSURFHHGVJUDGXDOO\

VWHSE\VWHS7KHDWWULEXWHVRIWKHWULJUDPVDOVRSRLQWWRWKLVZLWKLQLV

WUDQTXLOOLW\ZKLFKJXDUGVDJDLQVWSUHFLSLWDWHDFWLRQVDQGZLWKRXWLV

SHQHWUDWLRQZKLFKPDNHVGHYHORSPHQWDQGSURJUHVVSRVVLEOH

7+(-8'*0(17

'(9(/230(177KHPDLGHQ

,VJLYHQLQPDUULDJH

*RRGIRUWXQH

3HUVHYHUDQFHIXUWKHUV

7KHGHYHORSPHQWRIHYHQWVWKDWOHDGVWRDJLUOVIROORZLQJDPDQWRKLVKRPH

SURFHHGVVORZO\7KHYDULRXVIRUPDOLWLHVPXVWEHGLVSRVHGRIEHIRUHWKH

PDUULDJHWDNHVSODFH7KLVSULQFLSOHRIJUDGXDOGHYHORSPHQWFDQEHDSSOLHGWR

RWKHUVLWXDWLRQVDVZHOOLWLVDOZD\VDSSOLFDEOHZKHUHLWLVDPDWWHURIFRUUHFW

UHODWLRQVKLSVRIFRRSHUDWLRQDVIRULQVWDQFHLQWKHDSSRLQWPHQWRIDQRIILFLDO

7KHGHYHORSPHQWPXVWEHDOORZHGWRWDNHLWVSURSHUFRXUVH+DVW\DFWLRQ

ZRXOGQRWEHZLVH7KLVLVDOVRWUXHILQDOO\RIDQ\HIIRUWWRH[HUWLQIOXHQFHRQ

RWKHUVIRUKHUHWRRWKHHVVHQWLDOIDFWRULVDFRUUHFWZD\RIGHYHORSPHQW

WKURXJKFXOWLYDWLRQRIRQHVRZQSHUVRQDOLW\1RLQIOXHQFHVXFKDVWKDW

H[HUWHGE\DJLWDWRUVKDVDODVWLQJHIIHFW

:LWKLQWKHSHUVRQDOLW\WRRGHYHORSPHQWPXVWIROORZWKHVDPHFRXUVHLI

ODVWLQJUHVXOWVDUHWREHDFKLHYHG*HQWOHQHVVWKDWLVDGDSWDEOHEXWDWWKH

VDPH

WLPHSHQHWUDWLQJLVWKHRXWHUIRUPWKDWVKRXOGSURFHHGIURPLQQHUFDOP

7KHYHU\JUDGXDOQHVVRIWKHGHYHORSPHQWPDNHVLWQHFHVVDU\WRKDYH

SHUVHYHUDQFHIRUSHUVHYHUDQFHDORQHSUHYHQWVVORZSURJUHVVIURPGZLQGOLQJ

WRQRWKLQJ

7+(,0$*(

background image

2QWKHPRXQWDLQDWUHH

7KHLPDJHRI'(9(/230(17

7KXVWKHVXSHULRUPDQDELGHVLQGLJQLW\DQGYLUWXH

,QRUGHUWRLPSURYHWKHPRUHV

7KHWUHHRQWKHPRXQWDLQLVYLVLEOHIURPDIDUDQGLWVGHYHORSPHQW

LQIOXHQFHVWKHODQGVFDSHRIWKHHQWLUHUHJLRQ,WGRHVQRWVKRRWXSOLNHD

VZDPSSODQWLWVJURZWKSURFHHGVJUDGXDOO\7KXVDOVRWKHZRUNRI

LQIOXHQFLQJSHRSOHFDQEHRQO\JUDGXDO1RVXGGHQLQIOXHQFHRUDZDNHQLQJ

LVRIODVWLQJHIIHFW3URJUHVVPXVWEHTXLWHJUDGXDODQGLQRUGHUWRREWDLQ

VXFK

SURJUHVVLQSXEOLFRSLQLRQDQGLQWKHPRUHVRIWKHSHRSOHLWLVQHFHVVDU\IRU

WKHSHUVRQDOLW\WRDFTXLUHLQIOXHQFHDQGZHLJKW7KLVFRPHVDERXWWKURXJK

FDUHIXODQGFRQVWDQWZRUNRQRQHVRZQPRUDOGHYHORSPHQW

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

7KHZLOGJRRVHJUDGXDOO\GUDZVQHDUWKHVKRUH

7KH\RXQJVRQLVLQGDQJHU

7KHUHLVWDON1REODPH

$OOWKHLQGLYLGXDOOLQHVLQWKLVKH[DJUDPV\PEROL]HWKHJUDGXDOIOLJKWRIWKH

ZLOGJRRVH7KHZLOGJRRVHLVWKHV\PERORIFRQMXJDOILGHOLW\EHFDXVHLWLV

EHOLHYHGWKDWWKLVELUGQHYHUWDNHVDQRWKHUPDWHDIWHUWKHGHDWKRIWKHILUVW

7KHLQLWLDOOLQHVXJJHVWVWKHILUVWUHVWLQJSODFHLQWKHIOLJKWRIZDWHUELUGV

IURPWKHZDWHUWRWKHKHLJKWV7KHVKRUHLVUHDFKHG7KHVLWXDWLRQLVWKDWRID

ORQHO\\RXQJPDQZKRLVMXVWVWDUWLQJRXWWRPDNHKLVZD\LQOLIH6LQFHQR

RQHFRPHVWRKHOSKLPKLVILUVWVWHSVDUHVORZDQGKHVLWDQWDQGKHLV

VXUURXQGHGE\GDQJHU1DWXUDOO\KHLVVXEMHFWHGWRPXFKFULWLFLVP%XWWKHVH

YHU\GLIILFXOWLHVNHHSKLPIURPEHLQJWRRKDVW\DQGKLVSURJUHVVLVVXFFHVVIXO

ƒ6L[LQWKHVHFRQGSODFHPHDQV

7KHZLOGJRRVHJUDGXDOO\GUDZVQHDUWKHFOLII

(DWLQJDQGGULQNLQJLQSHDFHDQGFRQFRUG

*RRGIRUWXQH

7KHFOLIILVDVDIHSODFHRQVKRUH7KHGHYHORSPHQWKDVJRQHDVWHSIXUWKHU

7KHLQLWLDOLQVHFXULW\KDVEHHQRYHUFRPHDQGDVDIHSRVLWLRQLQOLIHKDVEHHQ

IRXQGJLYLQJRQHHQRXJKWROLYHRQ7KLVILUVWVXFFHVVRSHQLQJXSDSDWKWR

DFWLYLW\EULQJVDFHUWDLQMR\RXVQHVVRIPRRGDQGRQHJRHVWRPHHWWKHIXWXUH

UHDVVXUHG

,WLVVDLGRIWKHZLOGJRRVHWKDWLWFDOOVWRLWVFRPUDGHVZKHQHYHULWILQGV

IRRGWKLVLVWKHV\PERORISHDFHDQGFRQFRUGLQJRRGIRUWXQH$PDQGRHV

QRWZDQWWRNHHSKLVJRRGOXFNIRUKLPVHOIRQO\EXWLVUHDG\WRVKDUHLWZLWK

RWKHUV

1LQHLQWKHWKLUGSODFHPHDQV

background image

7KHZLOGJRRVHJUDGXDOO\GUDZVQHDUWKHSODWHDX

7KHPDQJRHVIRUWKDQGGRHVQRWUHWXUQ

7KHZRPDQFDUULHVDFKLOGEXWGRHVQRWEULQJLWIRUWK

0LVIRUWXQH

,WIXUWKHUVRQHWRILJKWRIIUREEHUV

7KHKLJKSODWHDXLVGU\DQGXQVXLWDEOHIRUWKHZLOGJRRVH,ILWJRHVWKHUHLW

KDVORVWLWVZD\DQGJRQHWRRIDU7KLVLVFRQWUDU\WRWKHODZRIGHYHORSPHQW

,WLVWKHVDPHLQKXPDQOLIH,IZHGRQRWOHWWKLQJVGHYHORSTXLHWO\EXW

SOXQJHRIRXURZQFKRLFHWRRUDVKO\LQWRDVWUXJJOHPLVIRUWXQHUHVXOWV$

PDQMHRSDUGL]HVKLVRZQOLIHDQGKLVIDPLO\SHULVKHVWKHUHE\+RZHYHUWKLV

LVQRWDOOQHFHVVDU\LWLVRQO\WKHUHVXOWRIWUDQVJUHVVLQJWKHODZRIQDWXUDO

GHYHORSPHQW,IRQHGRHVQRWZLOOIXOO\SURYRNHDFRQIOLFWEXWFRQILQHV

KLPVHOIWRYLJRURXVO\PDLQWDLQLQJKLVRZQSRVLWLRQDQGWRZDUGLQJRII

XQMXVWLILHGDWWDFNVDOOJRHVZHOO

6L[LQWKHIRXUWKSODFHPHDQV

7KHZLOGJRRVHJRHVJUDGXDOO\GUDZVQHDUWKHWUHH

3HUKDSVLWZLOOILQGDIODWEUDQFK1REODPH

$WUHHLVQRWDVXLWDEOHSODFHIRUDZLOGJRRVH%XWLILWLVFOHYHULWZLOOILQGD

IODWEUDQFKRQZKLFKLWFDQJHWDIRRWLQJ$PDQVOLIHWRRLQWKHFRXUVHRILWV

GHYHORSPHQWRIWHQEULQJVKLPLQWRLQDSSURSULDWHVLWXDWLRQVLQZKLFKKH

ILQGVLWGLIILFXOWWRKROGKLVRZQZLWKRXWGDQJHU7KHQLWLVLPSRUWDQWWREH

VHQVLEOHDQG\LHOGLQJ7KLVHQDEOHVKLPWRGLVFRYHUDVDIHSODFHLQZKLFKOLIH

FDQJRRQDOWKRXJKKHPD\EHVXUURXQGHGE\GDQJHU

ƒ1LQHLQWKHILIWKSODFHPHDQV

7KHZLOGJRRVHJUDGXDOO\GUDZVQHDUWKHVXPPLW

)RUWKUHH\HDUVWKHZRPDQKDVQRFKLOG

,QWKHHQGQRWKLQJFDQKLQGHUKHU

*RRGIRUWXQH

7KHVXPPLWLVDKLJKSODFH,QDKLJKSRVLWLRQRQHHDVLO\EHFRPHVLVRODWHG

2QHLVPLVMXGJHGE\WKHYHU\SHUVRQRQZKRPRQHLVGHSHQGHQWWKHZRPDQ

E\KHUKXVEDQGWKHRIILFLDOE\KLVVXSHULRU7KLVLVWKHZRUNRIGHFHLWIXO

SHUVRQVZKRKDYHZRUPHGWKHLUZD\LQ7KHUHVXOWLVWKDWUHODWLRQVKLSV

UHPDLQVWHULOHDQGQRWKLQJLVDFFRPSOLVKHG%XWLQWKHFRXUVHRIIXUWKHU

GHYHORSPHQWVXFKPLVXQGHUVWDQGLQJVDUHFOHDUHGDZD\DQGUHFRQFLOLDWLRQLV

DFKLHYHGDIWHUDOO

1LQHDWWKHWRSPHDQV

7KHZLOGJRRVHJUDGXDOO\GUDZVQHDUWKHFORXGVKHLJKWV

,WVIHDWKHUVFDQEHXVHGIRUWKHVDFUHGGDQFH

*RRGIRUWXQH

+HUHOLIHFRPHVWRLWVHQG$PDQVZRUNVWDQGVFRPSOHWHG7KHSDWKULVHV

KLJKWRZDUGKHDYHQOLNHWKHIOLJKWRIZLOGJHHVHZKHQWKH\KDYHOHIWWKH

background image

HDUWKIDUEHKLQG7KHUHWKH\IO\NHHSLQJWRWKHRUGHURIWKHLUIOLJKWLQVWULFW

IRUPDWLRQ$QGLIWKHLUIHDWKHUVIDOOWKH\FDQVHUYHDVRUQDPHQWVLQWKH

VDFUHGGDQFHSDQWRPLPHVSHUIRUPHGLQWKHWHPSOHV7KXVWKHOLIHRIDPDQ

ZKRKDVSHUIHFWHGKLPVHOILVDEULJKWOLJKWIRUWKHSHRSOHRIHDUWKZKRORRN

XSWRKLPDVDQH[DPSOH

LQGH[

.XHL0HL7KH0DUU\LQJ0DLGHQ

DERYH&+r17+($5286,1*7+81'(5

EHORZ78,7+(-2<286/$.(

$ERYHZHKDYH&KrQWKHHOGHVWVRQDQGEHORZ7XLWKH\RXQJHVWGDXJKWHU

7KHPDQOHDGVDQGWKHJLUOIROORZVKLPLQJODGQHVV7KHSLFWXUHLVWKDWRIWKH

HQWUDQFHRIWKHJLUOLQWRKHUKXVEDQGVKRXVH,QDOOWKHUHDUHIRXU

KH[DJUDPVGHSLFWLQJWKHUHODWLRQVKLSEHWZHHQKXVEDQGDQGZLIH+VLHQ

,1)/8(1&(GHVFULEHVWKHDWWUDFWLRQWKDWD\RXQJFRXSOHKDYHIRUHDFK

RWKHU+rQJ'85$7,21SRUWUD\VWKHSHUPDQHQWUHODWLRQVKLSVRI

PDUULDJH&KLHQ'(9(/230(17UHIOHFWVWKHSURWUDFWHGFHUHPRQLRXV

SURFHGXUHVDWWHQGLQJ7+(0$55<,1*0$,'(1VKRZVD\RXQJJLUOXQGHU

WKHJXLGDQFHRIDQROGHUPDQZKRPDUULHVKHU

7+(-8'*0(17

7+(0$55<,1*0$,'(1

8QGHUWDNLQJVEULQJPLVIRUWXQH

1RWKLQJWKDWZRXOGIXUWKHU

$JLUOZKRLVWDNHQLQWRWKHIDPLO\EXWQRWDVWKHFKLHIZLIHPXVWEHKDYH

ZLWKVSHFLDOFDXWLRQDQGUHVHUYH6KHPXVWQRWWDNHLWXSRQKHUVHOIWR

VXSSODQWWKHPLVWUHVVRIWKHKRXVHIRUWKDWZRXOGPHDQGLVRUGHUDQGOHDGWR

XQWHQDEOHUHODWLRQVKLSV

7KHVDPHLVWUXHRIDOOYROXQWDU\UHODWLRQVKLSVEHWZHHQKXPDQEHLQJV

:KLOHOHJDOO\UHJXODWHGUHODWLRQVKLSVEDVHGRQSHUVRQDOLQFOLQDWLRQGHSHQGLQ

WKHORQJUXQHQWLUHO\RQWDFWIXOUHVHUYH

$IIHFWLRQDVWKHHVVHQWLDOSULQFLSOHRIUHODWHGQHVVLVRIWKHJUHDWHVW

LPSRUWDQFHLQDOOUHODWLRQVKLSVLQWKHZRUOG)RUWKHXQLRQRIKHDYHQDQG

HDUWKLVWKHRULJLQRIWKHZKROHRIQDWXUH$PRQJKXPDQEHLQJVOLNHZLVH

VSRQWDQHRXVDIIHFWLRQLVWKHDOOLQFOXVLYHSULQFLSOHRIXQLRQ

7+(,0$*(

7KXQGHURYHUWKHODNH

7KHLPDJHRI7+(0$55<,1*0$,'(1

7KXVWKHVXSHULRUPDQ

8QGHUVWDQGVWKHWUDQVLWRU\

background image

,QWKHOLJKWRIWKHHWHUQLW\RIWKHHQG

7KXQGHUVWLUVWKHZDWHURIWKHODNHZKLFKIROORZVLWLQVKLPPHULQJZDYHV

7KLVV\PEROL]HVWKHJLUOZKRIROORZVWKHPDQRIKHUFKRLFH%XWHYHU\

UHODWLRQVKLSEHWZHHQLQGLYLGXDOVEHDUVZLWKLQLWWKHGDQJHUWKDWZURQJWXUQV

PD\EHWDNHQOHDGLQJWRHQGOHVVPLVXQGHUVWDQGLQJVDQGGLVDJUHHPHQWV

7KHUHIRUHLWLVQHFHVVDU\FRQVWDQWO\WRUHPDLQPLQGIXORIWKHHQG,IZH

SHUPLWRXUVHOYHVWRGULIWDORQJZHFRPHWRJHWKHUDQGDUHSDUWHGDJDLQDVWKH

GD\PD\GHWHUPLQH,IRQWKHRWKHUKDQGDPDQIL[HVKLVPLQGRQDQHQGWKDW

HQGXUHVKHZLOOVXFFHHGLQDYRLGLQJWKHUHHIVWKDWFRQIURQWWKHFORVHU

UHODWLRQVKLSVRISHRSOH

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

7KHPDUU\LQJPDLGHQDVDFRQFXELQH

$ODPHPDQZKRLVDEOHWRWUHDG

8QGHUWDNLQJVEULQJJRRGIRUWXQH

7KHSULQFHVVRIDQFLHQW&KLQDPDLQWDLQHGDIL[HGRUGHURIUDQNDPRQJWKH

FRXUWODGLHVZKRZHUHVXERUGLQDWHGWRWKHTXHHQDVDUH\RXQJHUVLVWHUVWRWKH

HOGHVW)UHTXHQWO\WKH\FDPHIURPWKHIDPLO\RIWKHTXHHQZKRKHUVHOIOHG

WKHPWRKHUKXVEDQG

7KHPHDQLQJLVWKDWDJLUOHQWHULQJDIDPLO\ZLWKWKHFRQVHQWRIWKHZLIH

ZLOOQRWUDQNRXWZDUGO\DVWKHHTXDORIWKHODWWHUEXWZLOOZLWKGUDZPRGHVWO\

LQWRWKHEDFNJURXQG+RZHYHULIVKHXQGHUVWDQGVKRZWRILWKHUVHOILQWRWKH

SDWWHUQRIWKLQJVKHUSRVLWLRQZLOOEHHQWLUHO\VDWLVIDFWRU\DQGVKHZLOOIHHO

VKHOWHUHGLQWKHORYHRIWKHKXVEDQGWRZKRPVKHEHDUVFKLOGUHQ

7KHVDPHPHDQLQJLVEURXJKWRXWLQWKHUHODWLRQVKLSVEHWZHHQRIILFLDOV$

PDQPD\HQMR\WKHSHUVRQDOIULHQGVKLSRIDSULQFHDQGEHWDNHQLQWRKLV

FRQILGHQFH2XWZDUGO\WKLVPDQPXVWNHHSWDFWIXOO\LQWKHEDFNJURXQG

EHKLQGWKHRIILFLDOPLQLVWHUVRIVWDWHEXWDOWKRXJKKHLVKDPSHUHGE\WKLV

VWDWXVDVLIKHZHUHODPHKHFDQQHYHUWKHOHVVDFFRPSOLVKVRPHWKLQJWKURXJK

WKHNLQGOLQHVVRIKLVQDWXUH

1LQHLQWKHVHFRQGSODFHPHDQV

$RQHH\HGPDQZKRLVDEOHWRVHH

7KHSHUVHYHUDQFHRIDVROLWDU\PDQIXUWKHUV

+HUHWKHVLWXDWLRQLVWKDWRIDJLUOPDUULHGWRDPDQZKRKDVGLVDSSRLQWHG

KHU0DQDQGZLIHRXJKWWRZRUNWRJHWKHUOLNHDSDLURIH\HV+HUHWKHJLUOLV

OHIWEHKLQGLQORQHOLQHVVWKHPDQRIKHUFKRLFHHLWKHUKDVEHFRPHXQIDLWKIXO

RUKDVGLHG%XWVKHGRHVQRWORVWWKHLQQHUOLJKWRIOR\DOW\7KRXJKWWKH

RWKHUH\HLVJRQHVKHPDLQWDLQVKHUOR\DOW\HYHQLQORQHOLQHVV

6L[LQWKHWKLUGSODFHPHDQV

7KHPDUU\LQJPDLGHQDVDVODYH

6KHPDUULHVDVDFRQFXELQH

background image

$JLUOZKRLVLQDORZO\SRVLWLRQDQGILQGVQRKXVEDQGPD\LQVRPH

FLUFXPVWDQFHVVWLOOZLQVKHOWHUDVDFRQFXELQH

7KLVSLFWXUHVWKHVLWXDWLRQRIDSHUVRQZKRORQJVWRRPXFKIRUMR\VWKDW

FDQQRWEHREWDLQHGLQWKHXVXDOZD\+HHQWHUVXSRQDVLWXDWLRQQRW

DOWRJHWKHUFRPSDWLEOHZLWKVHOIHVWHHP1HLWKHUMXGJPHQWQRUZDUQLQJLV

DGGHGWRWKLVOLQHLWPHUHO\OD\VEDUHWKHDFWXDOVLWXDWLRQVRWKDWHYHU\RQH

PD\GUDZDOHVVRQIURPLW

1LQHLQWKHIRXUWKSODFHPHDQV

7KHPDUU\LQJPDLGHQGUDZVRXWWKHDOORWWHGWLPH

$ODWHPDUULDJHFRPHVLQGXHFRXUVH

7KHJLUOLVYLUWXRXV6KHGRHVQRWZLVKWRWKURZKHUVHOIDZD\DQGDOORZVWKH

FXVWRPDU\WLPHIRUPDUULDJHWRVOLSE\+RZHYHUWKHUHLVQRKDUPLQWKLV

VKHLVUHZDUGHGIRUKHUSXULW\DQGHYHQWKRXJKEHODWHGO\ILQGVWKHKXVEDQG

LQWHQGHGIRUKHU

ƒ6L[LQWKHILIWKSODFHPHDQV

7KHVRYHUHLJQ,JDYHKLVGDXJKWHULQPDUULDJH

7KHHPEURLGHUHGJDUPHQWVRIWKHSULQFHVV

:HUHQRWDVJRUJHRXV

$VWKRVHRIWKHVHUYLQJPDLG

7KHPRRQWKDWLVQHDUO\IXOO

%ULQJVJRRGIRUWXQH

7KHVRYHUHLJQ,LV7DQJWKH&RPSOHWHU7KLVUXOHUGHFUHHGWKDWWKHLPSHULDO

SULQFHVVHVVKRXOGEHVXERUGLQDWHGWRWKHLUKXVEDQGVLQWKHVDPHPDQQHUDV

RWKHUZRPHQFI+H[DJUDPVL[LQWKHILIWKSODFH7KHHPSHURUGRHVQRW

ZDLWIRUDVXLWRUWRZRRKLVGDXJKWHUEXWJLYHVKHULQPDUULDJHZKHQKHVHHV

ILW7KHUHIRUHLWLVLQDFFRUGZLWKFXVWRPIRUWKHJLUOVIDPLO\WRWDNHWKH

LQLWLDWLYHKHUH

:HVHHKHUHDJLUORIDULVWRFUDWLFELUWKZKRPDUULHVDPDQRIPRGHVW

FLUFXPVWDQFHVDQGXQGHUVWDQGVKRZWRDGDSWKHUVHOIZLWKJUDFHWRWKHQHZ

VLWXDWLRQ6KHLVIUHHRIDOOYDQLW\RIRXWHUDGRUQPHQWDQGIRUJHWWLQJKHUUDQN

LQKHUPDUULDJHWDNHVDSODFHEHORZWKDWRIKHUKXVEDQGMXVWDVWKHPRRQ

EHIRUHLWLVTXLWHIXOOGRHVQRWGLUHFWO\IDFHWKHVXQ

6L[DWWKHWRSPHDQV

7KHZRPDQKROGVWKHEDVNHWEXWWKHUHDUHQRIUXLWVLQLW

7KHPDQVWDEVWKHVKHHSEXWQREORRGIORZV

1RWKLQJWKDWDFWVWRIXUWKHU

$WWKHVDFULILFHWRWKHDQFHVWRUVWKHZRPDQKDGWRSUHVHQWKDUYHVWRIIHULQJV

LQDEDVNHWZKLOHWKHPDQVODXJKWHUHGWKHVDFULILFLDODQLPDOZLWKKLVRZQ

KDQG+HUHWKHULWXDOLVRQO\VXSHUILFLDOO\IXOILOOHGWKHZRPDQWDNHVDQ

HPSW\EDVNHWDQGWKHPDQVWDEVDVKHHSVODXJKWHUHGEHIRUHKDQGVROHO\WR

background image

SUHVHUYHWKHIRUPV7KLVLPSLRXVLUUHYHUHQWDWWLWXGHERGHVQRJRRGIRUD

PDUULDJH

LQGH[

)rQJ$EXQGDQFH>)XOOQHVV@

DERYH&+r17+($5286,1*7+81'(5

EHORZ/,7+(&/,1*,1*),5(

&KrQLVPRYHPHQW/LLVIODPHZKRVHDWWULEXWHLVFODULW\&ODULW\ZLWKLQ

PRYHPHQWZLWKRXWWKLVSURGXFHVJUHDWQHVVDQGDEXQGDQFH7KHKH[DJUDP

SLFWXUHVDSHULRGRIDGYDQFHGFLYLOL]DWLRQ+RZHYHUWKHIDFWWKDW

GHYHORSPHQWKDVUHDFKHGDSHDNVXJJHVWVWKDWWKLVH[WUDRUGLQDU\FRQGLWLRQRI

DEXQGDQFHFDQQRWEHPDLQWDLQHGSHUPDQHQWO\

7+(-8'*0(17

$%81'$1&(KDVVXFFHVV

7KHNLQJDWWDLQVDEXQGDQFH

%HQRWVDG

%HOLNHWKHVXQDWPLGGD\

,WLVQRWJLYHQWRHYHU\PRUWDOWREULQJDERXWDWLPHRIRXWVWDQGLQJJUHDWQHVV

DQGDEXQGDQFH2QO\DERUQUXOHURIPHQLVDEOHWRGRLWEHFDXVHKLVZLOOLV

GLUHFWHGWRZKDWLVJUHDW6XFKDWLPHRIDEXQGDQFHLVXVXDOO\EULHI

7KHUHIRUH

DVDJHPLJKWZHOOIHHOVDGLQYLHZRIWKHGHFOLQHWKDWPXVWIROORZ%XWVXFK

VDGQHVVIRHVQRWEHILWKLP2QO\DPDQZKRLVLQZDUGO\IUHHRIVRUURZDQG

FDUHFDQOHDGLQDWLPHRIDEXQGDQFH+HPXVWEHOLNHWKHVXQDWPLGGD\

LOOXPLQDWLQJDQGJODGGHQLQJHYHU\WKLQJXQGHUKHDYHQ

7+(,0$*(

%RWKWKXQGHUDQGOLJKWQLQJFRPH

7KHLPDJHRI$%81'$1&(

7KXVWKHVXSHULRUPDQGHFLGHVODZVXLWV

$QGFDUULHVRXWSXQLVKPHQWV

7KLVKH[DJUDPKDVDFHUWDLQFRQQHFWLRQZLWK6KLK+R%,7,1*7+528*+

LQZKLFKWKXQGHUDQGOLJKWQLQJVLPLODUO\DSSHDUWRJHWKHUEXWLQWKH

UHYHUVHRUGHU,Q%,7,1*7+528*+ODZVDUHODLGGRZQKHUHWKH\DUH

DSSOLHGDQGHQIRUFHG&ODULW\>/L@ZLWKLQPDNHVLWSRVVLEOHWRLQYHVWLJDWHWKH

IDFWVH[DFWO\DQGVKRFN>&KrQ@ZLWKRXWHQVXUHVDVWULFWDQGSUHFLVHFDUU\LQJ

RXWRISXQLVKPHQWV

7+(/,1(6

background image

1LQHDWWKHEHJLQQLQJPHDQV

:KHQDPDQPHHWVKLVGHVWLQHGUXOHU

7KH\FDQEHWRJHWKHUWHQGD\V

$QGLWLVQRWDPLVWDNH

*RLQJPHHWVZLWKUHFRJQLWLRQ

7REULQJDERXWDWLPHRIDEXQGDQFHDXQLRQRIFODULW\ZLWKHQHUJHWLF

PRYHPHQWLVQHHGHG7ZRLQGLYLGXDOVSRVVHVVHGRIWKHVHWZRDWWULEXWHVDUH

VXLWHGWRHDFKRWKHUDQGHYHQLIWKH\VSHQGDQHQWLUHF\FOHRIWLPHWRJHWKHU

GXULQJWKHSHULRGRIDEXQGDQFHLWZLOOQRWEHWRRORQJQRULVLWDPLVWDNH

7KHUHIRUHRQHPD\JRIRUWKLQRUGHUWRPDNHRQHVLQIOXHQFHIHOWLWZLOOPHHW

ZLWKUHFRJQLWLRQ

6L[LQWKHVHFRQGSODFHPHDQV

7KHFXUWDLQLVRIVXFKIXOOQHVV

7KDWWKHSROHVWDUVFDQEHVHHQDWQRRQ

7KURXJKJRLQJRQHPHHWVZLWKPLVWUXVWDQGKDWH

,IRQHURXVHVKLPWKURXJKWUXWK

*RRGIRUWXQHFRPHV

,WRIWHQKDSSHQVWKDWSORWVDQGSDUW\LQWULJXHVZKLFKKDYHWKHGDUNHQLQJ

HIIHFWRIDQHFOLSVHRIWKHVXQFRPHEHWZHHQDUXOHULQWHQWRQJUHDW

DFKLHYHPHQWDQGWKHPDQZKRFRXOGHIIHFWJUHDWXQGHUWDNLQJV7KHQ

LQVWHDGRIWKHVXQZHVHHWKHQRUWKHUQVWDUVLQWKHVN\7KHUXOHULV

RYHUVKDGRZHGE\DSDUW\WKDWKDVXVXUSHGSRZHU,IDPDQDWVXFKDWLPH

ZHUHWRWU\WRWDNHHQHUJHWLFPHDVXUHVKHZRXOGHQFRXQWHURQO\PLVWUXVWDQG

HQY\ZKLFKZRXOGSURKLELWDOOPRYHPHQW7KHHVVHQWLDOWKLQJWKHQLVWR

KROGLQZDUGO\WRWKHSRZHURIWUXWKZKLFKLQWKHHQGLVVRVWURQJWKDWLW

H[HUWVDQLQYLVLEOHLQIOXHQFHRQWKHUXOHUVRWKDWDOOJRHVZHOO

1LQHLQWKHWKLUGSODFHPHDQV

7KHXQGHUEUXVKLVRIVXFKDEXQGDQFH

7KDWWKHVPDOOVWDUVFDQEHVHHQDWQRRQ

+HEUHDNVKLVULJKWDUP1REODPH

7KHLPDJHLVWKDWRIDSURJUHVVLYHFRYHULQJRYHURIWKHVXQ+HUHWKHHFOLSVH

UHDFKHVWRWDOLW\WKHUHIRUHHYHQWKHVPDOOVWDUVFDQEHVHHQDWQRRQ

,QWKHVSKHUHRIVRFLDOUHODWLRQVKLSVWKLVPHDQVWKDWWKHSULQFHLVQRZVR

HFOLSVHGWKDWHYHQWKHPRVWLQVLJQLILFDQWSHUVRQVFDQSXVKWKHPVHOYHVLQWR

WKHIRUHJURXQG7KLVPDNHVLWLPSRVVLEOHIRUDQDEOHPDQWKRXJKKHPLJKW

EHWKHULJKWKDQGRIWKHUXOHUWRXQGHUWDNHDQ\WKLQJ,WLVDVWKRXJKKLVDUP

ZHUHEURNHQEXWKHLVQRWWREODPHIRUEHLQJWKXVKLQGHUHGLQDFWLRQ

1LQHLQWKHIRXUWKSODFHPHDQV

7KHFXUWDLQLVRIVXFKIXOOQHVV

7KDWWKHSROHVWDUVFDQEHVHHQDWQRRQ

+HPHHWVKLVUXOHUZKRLVRIOLNHNLQG

background image

*RRGIRUWXQH

+HUHWKHGDUNQHVVLVDOUHDG\GHFUHDVLQJWKHUHIRUHLQWHUUHODWHGHOHPHQWVFRPH

WRJHWKHU+HUHWRRWKHFRPSOHPHQWPXVWEHIRXQGWKHQHFHVVDU\ZLVGRPWR

FRPSOHPHQWMR\RIDFWLRQ7KHQHYHU\WKLQJZLOOJRZHOO7KH

FRPSOHPHQWDU\IDFWRUSRVWXODWHGKHUHLVWKHUHYHUVHRIWKHRQHLQWKHILUVW

OLQH,QWKHODWWHUZLVGRPLVWREHFRPSOHPHQWHGE\HQHUJ\ZKLOHKHUH

HQHUJ\LVFRPSOHPHQWHGE\ZLVGRP

ƒ6L[LQWKHILIWKSODFHPHDQV

/LQHVDUHFRPLQJ

%OHVVLQJDQGIDPHGUDZQHDU

*RRGIRUWXQH

7KHUXOHULVPRGHVWDQGWKHUHIRUHRSHQWRWKHFRXQVHORIDEOHPHQ7KXVKH

LVVXUURXQGHGE\PHQZKRVXJJHVWWRKLPWKHOLQHVRIDFWLRQ7KLVEULQJV

EOHVVLQJIDPHDQGJRRGIRUWXQHWRKLPDQGDOOWKHSHRSOH

6L[DWWKHWRSPHDQV

+LVKRXVHLVLQDVWDWHRIDEXQGDQFH

+HVFUHHQVRIIKLVIDPLO\

+HSHHUVWKURXJKWKHJDWH

$QGQRORQJHUSHUFHLYHVDQ\RQH

)RUWKUHH\HDUVKHVHHVQRWKLQJ

0LVIRUWXQH

7KLVGHVFULEHVDPDQZKREHFDXVHRIKLVDUURJDQFHDQGREVWLQDF\DWWDLQVWKH

RSSRVLWHRIZKDWKHVWULYHVIRU+HVHHNVDEXQGDQFHDQGVSOHQGRUIRUKLV

GZHOOLQJ+HZLVKHVDWDOORGGVWREHPDVWHULQKLVKRXVHZKLFKVRDOLHQDWHV

KLVIDPLO\WKDWLQWKHHQGKHILQGVKLPVHOIFRPSOHWHO\LVRODWHG

LQGH[

/7KH:DQGHUHU

DERYH/,7+(&/,1*,1*),5(

EHORZ.r1.((3,1*67,//02817$,1

WKHPRXQWDLQ.rQVWDQGVVWLOODERYHLWILUH/LIODPHVXSDQGGRHVQRWWDUU\

7KHUHIRUHWKHWZRWULJUDPVGRQRWVWD\WRJHWKHU6WUDQJHODQGVDQG

VHSDUDWLRQ

DUHWKHZDQGHUHUVORW:KHQDPDQLVDZDQGHUHUDQGVWUDQJHUKHVKRXOG

QRWEHJUXIIQRURYHUEHDULQJ+HKDVQRODUJHFLUFOHRIDFTXDLQWDQFHV

WKHUHIRUHKHVKRXOGQRWJLYHKLPVHOIDLUV+HPXVWEHFDXWLRXVDQGUHVHUYHG

LQWKLVZD\KHSURWHFWVKLPVHOIIURPHYLO,IKHLVREOLJLQJWRZDUGRWKHUVKH

ZLQVVXFFHVV

$ZDQGHUHUKDVQRIL[HGDERGHKLVKRPHLVWKHURDG7KHUHIRUHKHPXVW

background image

WDNHFDUHWRUHPDLQXSULJKWDQGVWHDGIDVWVRWKDWKHVRMRXUQVRQO\LQWKH

SURSHUSODFHVDVVRFLDWLQJRQO\ZLWKJRRGSHRSOH7KHQKHKDVJRRGIRUWXQH

DQGFDQJRKLVZD\XQPROHVWHG

7+(,0$*(

)LUHRQWKHPRXQWDLQ

7KHLPDJHRI7+(:$1'(5(5

7KXVWKHVXSHULRUPDQ

,VFOHDUPLQGHGDQGFDXWLRXV

,QLPSRVLQJSHQDOWLHV

$QGSURWUDFWVQRODZVXLWV

:KHQJUDVVRQDPRXQWDLQWDNHVILUHWKHUHLVEULJKWOLJKW+RZHYHUWKHILUH

GRHVQRWOLQJHULQRQHSODFHEXWWUDYHOVRQWRQHZIXHO,WLVDSKHQRPHQRQ

RIVKRUWGXUDWLRQ7KLVLVZKDWSHQDOWLHVDQGODZVXLWVVKRXOGEHOLNH7KH\

VKRXOGEHDTXLFNO\SDVVLQJPDWWHUDQGPXVWQRWEHGUDJJHGRXWLQGHILQLWHO\

3ULVRQVRXJKWWREHSODFHVZKHUHSHRSOHDUHORGJHGRQO\WHPSRUDULO\DV

JXHVWV

DUH7KH\PXVWQRWEHFRPHGZHOOLQJSODFHV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

,IWKHZDQGHUHUEXVLHVKLPVHOIZLWKWULYLDOWKLQJV

+HGUDZVGRZQPLVIRUWXQHXSRQKLPVHOI

$ZDQGHUHUVKRXOGQRWGHPHDQKLPVHOIRUEXV\KLPVHOIZLWKLQIHULRUWKLQJV

KHPHHWVZLWKDORQJWKHZD\7KHKXPEOHUDQGPRUHGHIHQVHOHVVKLV

RXWZDUGSRVLWLRQWKHPRUHVKRXOGKHSUHVHUYHKLVLQQHUGLJQLW\)RUD

VWUDQJHULVPLVWDNHQLIKHKRSHVWRILQGDIULHQGO\UHFHSWLRQWKURXJKOHQGLQJ

KLPVHOIWRMRNHVDQGEXIIRRQHU\7KHUHVXOWZLOOEHRQO\FRQWHPSWDQG

LQVXOWLQJWUHDWPHQW

6L[LQWKHVHFRQGSODFHPHDQV

7KHZDQGHUHUFRPHVWRDQLQQ

+HKDVKLVSURSHUW\ZLWKKLP

+HZLQVWKHVWHDGIDVWQHVVRID\RXQJVHUYDQW

7KHZDQGHUHUKHUGHVFULEHGLVPRGHVWDQGUHVHUYHG+HGRHVQRWORVHWRXFK

ZLWKKLVLQQHUEHLQJKHQFHKHILQGVDUHVWLQJSODFH,QWKHRXWVLGHZRUOGKH

GRHVQRWORVHWKHOLNLQJRIRWKHUSHRSOHKHQFHDOOSHUVRQVIXUWKHUKLPVRWKDW

KHFDQDFTXLUHSURSHUW\0RUHRYHUKHZLQVWKHDOOHJLDQFHRIDIDLWKIXODQG

WUXVWZRUWK\VHUYDQWDWKLQJRILQHVWLPDEOHYDOXHWRDZDQGHUHU

1LQHLQWKHWKLUGSODFHPHDQV

7KHZDQGHUHUVLQQEXUQVGRZQ

+HORVHVWKHVWHDGIDVWQHVVRIKLV\RXQJVHUYDQW

background image

'DQJHU

$WUXFXOHQWVWUDQJHUGRHVQRWNQRZKRZWREHKDYHSURSHUO\+HPHGGOHVLQ

DIIDLUVDQGFRQWURYHUVLHVWKDWGRQRWFRQFHUQKLPWKXVKHORVHVKLVUHVWLQJ

SODFH+HWUHDWVKLVVHUYDQWZLWKDORRIQHVVDQGDUURJDQFHWKXVKHORVHVWKH

PDQVOR\DOW\:KHQDVWUDQJHULQDVWUDQJHODQGKDVQRRQHOHIWRQZKRPKH

FDQUHO\WKHVLWXDWLRQEHFRPHVYHU\GDQJHURXV

1LQHLQWKHIRXUWKSODFHPHDQV

7KHZDQGHUHUUHVWVLQDVKHOWHU

+HREWDLQVKLVSURSHUW\DQGDQD[

0\KHDUWLVQRWJODG

7KLVGHVFULEHVDZDQGHUHUZKRNQRZVKRZWROLPLWKLVGHVLUHVRXWZDUGO\

WKRXJKKHLVLQZDUGO\VWURQJDQGDVSLULQJ7KHUHIRUHKHILQGVDWOHDVWDSODFH

RIVKHOWHULQZKLFKKHFDQVWD\+HDOVRVXFFHHGVLQDFTXLULQJSURSHUW\EXW

HYHQZLWKWKLVKHLVQRWVHFXUH+HPXVWEHDOZD\VRQJXDUGUHDG\WRGHIHQG

KLPVHOIZLWKDUPV+HQFHKHLVQRWDWHDVH+HLVSHUVLVWHQWO\FRQVFLRXVRI

EHLQJDVWUDQJHULQDVWUDQJHODQG

ƒ6L[LQWKHILIWKSODFHPHDQV

+HVKRRWVDSKHDVDQW

,WGURSVZLWKWKHILUVWDUURZ

,QWKHHQGWKLVEULQJVERWKSUDLVHDQGRIILFH

7UDYHOLQJVWDWHVPDQZHUHLQWKHKDELWRILQWURGXFLQJWKHPVHOYHVWRORFDO

SULQFHVZLWKWKHJLIWRIDSKHDVDQWNLOOLQJLWDWWKHILUVWVKRW7KXVKHILQGV

IULHQGVZKRSUDLVHDQGUHFRPPHQGKLPDQGLQWKHHQGWKHSULQFHDFFHSWV

KLPDQGFRQIHUVDQRIILFHXSRQKLP

&LUFXPVWDQFHVRIWHQFDXVHDPDQWRVHHNDKRPHLQIRUHLJQSDUWV,IKH

NQRZVKRZWRPHHWWKHVLWXDWLRQDQGKRZWRLQWURGXFHKLPVHOILQWKHULJKW

ZD\KHPD\ILQGDFLUFOHRIIULHQGVDQGDVSKHUHRIDFWLYLW\HYHQLQDVWUDQJH

FRXQWU\

1LQHDWWKHWRSPHDQV

7KHELUGVQHVWEXUQVXS

7KHZDQGHUHUODXJKVDWILUVW

7KHQPXVWQHHGVODPHQWDQGZHHS

7KURXJKFDUHOHVVQHVVKHORVHVKLVFRZ

0LVIRUWXQH

7KHSLFWXUHRIDELUGZKRVHQHVWEXUQVXSLQGLFDWHVORVVRIRQHVUHVWLQJSODFH

7KLVPLVIRUWXQHPD\RYHUWDNHWKHELUGLILWLVKHHGOHVVDQGLPSUXGHQWZKHQ

EXLOGLQJLWVQHVW,WLVWKHVDPHZLWKDZDQGHUHU,IKHOHWVKLPVHOIJR

ODXJKLQJDQGMHVWLQJDQGIRUJHWVWKDWKHLVDZDQGHUHUKHZLOOODWHUKDYH

FDXVHWRZHHSDQGODPHQW)RULIWKURXJKFDUHOHVVQHVVDPDQORVHVKLVFRZ

LHKLVPRGHVW\DQGDGDSWDELOLW\HYLOZLOOUHVXOW

LQGH[

background image

6XQ7KH*HQWOH7KH3HQHWUDWLQJ:LQG

DERYH6817+(*(17/(:,1':22'

EHORZ6817+(*(17/(:,1':22'

6XQLVRQHRIWKHHLJKWGRXEOHGWULJUDPV,WLVWKHHOGHVWGDXJKWHUDQG

V\PEROL]HVZLQGRUZRRGLWKDVIRULWVDWWULEXWHJHQWOHQHVVZKLFK

QRQHWKHOHVVSHQHWUDWHVOLNHWKHZLQGRUOLNHJURZLQJZRRGZLWKLWVURRWV

7KHGDUNSULQFLSOHLQLWVHOIULJLGDQGLPPRYDEOHLVGLVVROYHGE\WKH

SHQHWUDWLQJOLJKWSULQFLSOHWRZKLFKLWVXERUGLQDWHVLWVHOILQJHQWOHQHVV,Q

QDWXUHLWLVWKHZLQGWKDWGLVSHUVHVWKHJDWKHUHGFORXGVOHDYLQJWKHVN\FOHDU

DQGVHUHQH,QKXPDQOLIHLWLVSHQHWUDWLQJFODULW\RIMXGJPHQWWKDWWKZDUWV

DOOGDUNKLGGHQPRWLYHV,QWKHOLIHRIWKHFRPPXQLW\LWLVWKHSRZHUIXO

LQIOXHQFHRIDJUHDWSHUVRQDOLW\WKDWXQFRYHUVDQGEUHDNVXSWKRVHLQWULJXHV

ZKLFKVKXQWKHOLJKWRIGD\

7+(-8'*0(17

7+(*(17/(6XFFHVVWKURXJKZKDWLVVPDOO

,WIXUWKHUVRQHWRKDYHVRPHZKHUHWRJR

,WIXUWKHUVRQHWRVHHWKHJUHDWPDQ

3HQHWUDWLRQSURGXFHVJUDGXDODQGLQFRQVSLFXRXVHIIHFWV,WVKRXOGEHHIIHFWHG

QRWE\DQDFWRIYLRODWLRQEXWE\LQIOXHQFHWKDWQHYHUODSVHV5HVXOWVRIWKLV

NLQGDUHOHVVVWULNLQJWRWKHH\HWKDQWKRVHZRQE\VXUSULVHDWWDFNEXWWKH\

DUH

PRUHHQGXULQJDQGPRUHFRPSOHWH,IRQHZRXOGSURGXFHVXFKHIIHFWVRQH

PXVWKDYHDFOHDUO\GHILQHGJRDOIRURQO\ZKHQWKHSHQHWUDWLQJLQIOXHQFH

ZRUNVDOZD\VLQWKHVDPHGLUHFWLRQFDQWKHREMHFWEHDWWDLQHG6PDOOVWUHQJWK

FDQDFKLHYHLWVSXUSRVHRQO\E\VXERUGLQDWLQJLWVHOIWRDQHPLQHQWPDQZKR

LVFDSDEOHRIFUHDWLQJRUGHU

7+(,0$*(

:LQGVIROORZLQJRQHXSRQWKHRWKHU

7KHLPDJHRI7+(*(17/<3(1(75$7,1*

7KXVWKHVXSHULRUPDQ

6SUHDGVKLVFRPPDQGVDEURDG

$QGFDUULHVRXWKLVXQGHUWDNLQJV

7KHSHQHWUDWLQJTXDOLW\RIWKHZLQGGHSHQGVXSRQLWVFHDVHOHVVQHVV7KLVLV

ZKDWPDNHVLWVRSRZHUIXOWLPHLVLWVLQVWUXPHQW,QWKHVDPHZD\WKH

UXOHUVWKRXJKWVKRXOGSHQHWUDWHWKHVRXORIWKHSHRSOH7KLVWRRUHTXLUHVD

ODVWLQJLQIOXHQFHEURXJKWDERXWE\HQOLJKWHQPHQWDQGFRPPDQG2QO\ZKHQ

WKHFRPPDQGKDVEHHQDVVLPLODWHGE\WKHSHRSOHLVDFWLRQLQDFFRUGDQFHZLWK

background image

LWSRVVLEOH$FWLRQZLWKRXWSUHSDUDWLRQRIWKHJURXQGRQO\IULJKWHQVDQG

UHSHOV

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

,QDGYDQFLQJDQGLQUHWUHDWLQJ

7KHSHUVHYHUDQFHRIDZDUULRUIXUWKHUV

,QERUQJHQWOHQHVVLVRIWHQFDUULHGWRWKHSRLQWRILQGHFLVLYHQHVV2QHGRHV

QRWIHHOVWURQJHQRXJKWRDGYDQFHUHVROXWHO\$WKRXVDQGGRXEWVFURSXSRQH

LVKRZHYHUQRWPLQGHGWRZLWKGUDZEXWGULIWVLQGHFLVLYHO\WRDQGIUR,Q

VXFKDVLWXDWLRQDPLOLWDU\GHFLVLYHQHVVLVWKHSURSHUWKLQJVRWKDWRQH

UHVROXWHO\GRHVZKDWRUGHUGHPDQGV5HVROXWHGLVFLSOLQHLVIDUEHWWHUWKDQ

LUUHVROXWHOLFHQVH

1LQHLQWKHVHFRQGSODFHPHDQV

3HQHWUDWLRQXQGHUWKHEHG

3ULHVWVDQGPDJLFLDQVDUHXVHGLQJUHDWQXPEHU

*RRGIRUWXQH1REODPH

$WWLPHVRQHKDVWRGHDOZLWKKLGGHQHQHPLHVLQWDQJLEOHLQIOXHQFHVWKDW

VOLQNLQWRGDUNFRUQHUVDQGIURPWKLVKLGLQJDIIHFWSHRSOHE\VXJJHVWLRQ,Q

LQVWDQFHVOLNHWKLVLWLVQHFHVVDU\WRWUDFHWKHVHWKLQJVEDFNWRWKHPRVWVHFUHW

UHFHVVHVLQRUGHUWRGHWHUPLQHWKHQDWXUHRIWKHLQIOXHQFHVWREHGHDOWZLWK

7KLVLVWKHWDVNRIWKHSULHVWVUHPRYLQJWKHLQIOXHQFHVLVWKHWDVNRIWKH

PDJLFLDQV7KHYHU\DQRQ\PLW\RIVXFKSORWWLQJUHTXLUHVDQHVSHFLDOO\

YLJRURXVDQGLQGHIDWLJDEOHHIIRUWEXWWKLVLVZHOOZRUWKZKLOH)RUZKHQVXFK

HOXVLYHLQIOXHQFHVDUHEURXJKWLQWRWKHOLJKWDQGEUDQGHGWKH\ORVHWKHLU

SRZHURYHUSHRSOH

1LQHLQWKHWKLUGSODFHPHDQV

5HSHDWHGSHQHWUDWLRQ+XPLOLDWLRQ

3HQHWUDWLQJUHIOHFWLRQPXVWQRWEHSXVKHGWRRIDUOHVWLWFULSSOHWKHSRZHURI

GHFLVLRQ$IWHUDPDWWHUKDVEHHQWKRURXJKO\SRQGHUHGLWLVHVVHQWLDOWRIRUP

DGHFLVLRQDQGWRDFW5HSHDWHGGHOLEHUDWLRQEULQJVIUHVKGRXEWVDQGVFUXSOHV

DQGWKHUHE\KXPLOLDWLRQEHFDXVHRQHVKRZVRQHVHOIXQDEOHWRDFW

6L[LQWKHIRXUWKSODFHPHDQV

5HPRUVHYDQLVKHV

'XULQJWKHKXQW

7KUHHNLQGVRIJDPHDUHFDXJKW

:KHQDUHVSRQVLEOHSRVLWLRQDQGDFFXPXODWHGH[SHULHQFHOHDGRQHWR

FRPELQHLQQDWHPRGHVW\ZLWKHQHUJHWLFDFWLRQJUHDWVXFFHVVLVDVVXUHG7KH

WKUHHNLQGVRIDQLPDOVUHIHUUHGWRVHUYHGIRURIIHULQJVWRWKHJRGVIRUIHDVWLQJ

JXHVWVDQGIRUHYHU\GD\FRQVXPSWLRQ:KHQWKHFDWFKDQVZHUHGDOOWKUHH

background image

SXUSRVHVWKHKXQWZDVFRQVLGHUHGHVSHFLDOO\VXFFHVVIXO

ƒ1LQHLQWKHILIWKSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

5HPRUVHYDQLVKHV

1RWKLQJWKDWGRHVQRWIXUWKHU

1REHJLQQLQJEXWDQHQG

%HIRUHWKHFKDQJHWKUHHGD\V

$IWHUWKHFKDQJHWKUHHGD\V

*RRGIRUWXQH

,QWKHVLWXDWLRQGHVFULEHGLQ.X:25.21:+$7+$6%((1632,/('

DQHQWLUHO\QHZSRLQWRIGHSDUWXUHPXVWEHVHWXSZKHUHDVKHUHLWLV

RQO\

DTXHVWLRQRIUHIRUPV7KHEHJLQQLQJKDVQRWEHHQJRRGEXWWKHPRPHQWKDV

EHHQUHDFKHGZKHQDQHZGLUHFWLRQFDQEHWDNHQ&KDQJHDQGLPSURYHPHQW

DUHFDOOHGIRU6XFKVWHSVPXVWEHXQGHUWDNHQZLWKVWHDGIDVWQHVVWKDWLVZLWK

DILUPDQGFRUUHFWDWWLWXGHRIPLQGWKHQWKH\ZLOOVXFFHHGDQGUHPRUVHZLOO

GLVDSSHDU%XWLWPXVWEHUHPHPEHUHGWKDWVXFKLPSURYHPHQWVUHTXLUH

FDUHIXOFRQVLGHUDWLRQ%HIRUHDFKDQJHLVPDGHLWPXVWEHSRQGHUHGRYHU

DJDLQDQGDJDLQ$IWHUWKHFKDQJHLVPDGHLWLVQHFHVVDU\WRQRWHFDUHIXOO\IRU

VRPHWLPHDIWHUKRZWKHLPSURYHPHQWVEHDUWKHWHVWRIDFWXDOLW\6XFK

FDUHIXOZRUNLVDFFRPSDQLHGE\JRRGIRUWXQH

1LQHDWWKHWRSPHDQV

3HQHWUDWLRQXQGHUWKHEHG

+HORVHVKLVSURSHUW\DQGKLVD[

3HUVHYHUDQFHEULQJVPLVIRUWXQH

$PDQVXQGHUVWDQGLQJLVVXIILFLHQWO\SHQHWUDWLQJ+HIROORZVXSLQMXULRXV

LQIOXHQFHVLQWRWKHPRVWVHFUHWFRUQHUV%XWKHQRORQJHUKDVWKHVWUHQJWKWR

FRPEDWWKHPGHFLVLYHO\,QWKLVFDVHDQ\DWWHPSWWRSHQHWUDWHLQWRWKH

SHUVRQDOGRPDLQRIGDUNQHVVZRXOGRQO\EULQJKDUP

LQGH[

7XL7KH-R\RXV/DNH

DERYH78,7+(-2<286/$.(

EHORZ78,7+(-2<286/$.(

7KLVKH[DJUDPOLNHVXQLVRQHRIWKHHLJKWIRUPHGE\GRXEOLQJRIDWULJUDP

7KHWULJUDP7XLGHQRWHVWKH\RXQJHVWGDXJKWHULWLVV\PEROL]HGE\WKH

VPLOLQJODNHDQGLWVDWWULEXWHLVMR\RXVQHVV&RQWUDU\WRDSSHDUDQFHVLWLVQRW

WKH\LHOGLQJTXDOLW\RIWKHWRSOLQHWKDWDFFRXQWVIRUMR\KHUH7KHDWWULEXWHRI

WKH\LHOGLQJRUGDUNSULQFLSOHLVQRWMR\EXWPHODQFKRO\+RZHYHUMR\LV

LQGLFDWHGE\WKHIDFWWKDWWKHUHDUHWZRVWURQJOLQHVZLWKLQH[SUHVVLQJ

background image

WKHPVHOYHVWKURXJKWKHPHGLXPRIJHQWOHQHVV

7UXHMR\WKHUHIRUHUHVWVRQILUPQHVVDQGVWUHQJWKZLWKLQPDQLIHVWLQJLWVHOI

RXWZDUGO\DV\LHOGLQJDQGJHQWOH

7+(-8'*0(17

7+(-2<2866XFFHVV

3HUVHYHUDQFHLVIDYRUDEOH

7KHMR\RXVPRRGLVLQIHFWLRXVDQGWKHUHIRUHEULQJVVXFFHVV%XWMR\PXVWEH

EDVHGRQVWHDGIDVWQHVVLILWLVQRWWRGHJHQHUDWHLQWRXQFRQWUROOHGPLUWK

7UXWKDQGVWUHQJWKPXVWGZHOOLQWKHKHDUWZKLOHJHQWOHQHVVUHYHDOVLWVHOILQ

VRFLDOLQWHUFRXUVH,QWKLVZD\RQHDVVXPHVWKHULJKWDWWLWXGHWRZDUG*RGDQG

PDQDQGDFKLHYHVVRPHWKLQJ8QGHUFHUWDLQFRQGLWLRQVLQWLPLGDWLRQ

ZLWKRXWJHQWOHQHVVPD\DFKLHYHVRPHWKLQJPRPHQWDULO\EXWQRWIRUDOO

WLPH:KHQRQWKHRWKHUKDQGWKHKHDUWVRIPHQDUHZRQE\IULHQGOLQHVV

WKH\DUHOHGWRWDNHDOOKDUGVKLSVXSRQWKHPVHOYHVZLOOLQJO\DQGLIQHHGEH

ZLOOQRWVKXQGHDWKLWVHOIVRJUHDWLVWKHSRZHURIMR\RYHUPHQ

7+(,0$*(

/DNHVUHVWLQJRQHRQWKHRWKHU

7KHLPDJHRI7+(-2<286

7KXVWKHVXSHULRUPDQMRLQVZLWKKLVIULHQGV

)RUGLVFXVVLRQDQGSUDFWLFH

$ODNHHYDSRUDWHVXSZDUGDQGWKXVJUDGXDOO\GULHVXSEXWZKHQWZRODNHV

DUHMRLQHGWKH\GRQRWGU\XSVRUHDGLO\IRURQHUHSOHQLVKHVWKHRWKHU,WLV

WKHVDPHLQWKHILHOGRINQRZOHGJH.QRZOHGJHVKRXOGEHDUHIUHVKLQJDQG

YLWDOL]LQJIRUFH,WEHFRPHVVRRQO\WKURXJKVWLPXODWLQJLQWHUFRXUVHZLWK

FRQJHQLDOIULHQGVZLWKZKRPRQHKROGVGLVFXVVLRQDQGSUDFWLFHVDSSOLFDWLRQ

RIWKHWUXWKVRIOLIH,QWKLVZD\OHDUQLQJEHFRPHVPDQ\VLGHGDQGWDNHVRQD

FKHHUIXOOLJKWQHVVZKHUHDVWKHUHLVDOZD\VVRPHWKLQJSRQGHURXVDQGRQH

VLGHGDERXWWKHOHDUQLQJRIWKHVHOIWDXJKW

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

&RQWHQWHGMR\RXVQHVV*RRGIRUWXQH

$TXLHWZRUGOHVVVHOIFRQWDLQHGMR\GHVLULQJQRWKLQJIURPZLWKRXWDQG

UHVWLQJFRQWHQWZLWKHYHU\WKLQJUHPDLQVIUHHRIDOOHJRWLVWLFOLNHVDQGGLVOLNHV

,QWKLVIUHHGRPOLHVJRRGIRUWXQHEHFDXVHLWKDUERUVWKHTXLHWVHFXULW\RID

KHDUWIRUWLILHGZLWKLQLWVHOI

ƒ1LQHLQWKHVHFRQGSODFHPHDQV

6LQFHUHMR\RXVQHVV*RRGIRUWXQH

5HPRUVHGLVDSSHDUV

background image

:HRIWHQILQGRXUVHOYHVDVVRFLDWLQJZLWKLQIHULRUSHRSOHLQZKRVHFRPSDQ\

ZHDUHWHPSWHGE\SOHDVXUHVWKDWDUHLQDSSURSULDWHIRUWKHVXSHULRUPDQ7R

SDUWLFLSDWHLQVXFKSOHDVXUHVZRXOGFHUWDLQO\EULQJUHPRUVHIRUDVXSHULRU

PDQFDQILQGQRUHDOVDWLVIDFWLRQLQORZSOHDVXUHV:KHQUHFRJQL]LQJWKLVD

PDQGRHVQRWSHUPLWKLVZLOOWRVZHUYHVRWKDWKHGRHVQRWILQGVXFKZD\V

DJUHHDEOHQRWHYHQGXELRXVFRPSDQLRQVZLOOYHQWXUHWRSURIIHUDQ\EDVH

SOHDVXUHVEHFDXVHKHZRXOGQRWHQMR\WKHP7KXVHYHU\FDXVHIRUUHJUHWLV

UHPRYHG

6L[LQWKHWKLUGSODFHPHDQV

&RPLQJMR\RXVQHVV0LVIRUWXQH

7UXHMR\PXVWVSULQJIURPZLWKLQ%XWLIRQHLVHPSW\ZLWKLQDQGZKROO\

JLYHQRYHUWRWKHZRUOGLGOHSOHDVXUHVFRPHVWUHDPLQJLQIURPZLWKRXW

7KLVLVZKDWPDQ\SHRSOHZHOFRPHDVGLYHUVLRQ7KRVHZKRODFNLQQHU

VWDELOLW\DQGWKHUHIRUHQHHGDPXVHPHQWZLOODOZD\VILQGRSSRUWXQLW\RI

LQGXOJHQFH7KH\DWWUDFWH[WHUQDOSOHDVXUHVE\WKHHPSWLQHVVRIWKHLUQDWXUHV

7KXVWKH\ORVHWKHPVHOYHVPRUHDQGPRUHZKLFKRIFRXUVHKDVEDGUHVXOWV

1LQHLQWKHIRXUWKSODFHPHDQV

-R\RXVQHVVWKDWLVZHLJKHGLVQRWDWSHDFH

$IWHUULGGLQJKLPVHOIRIPLVWDNHVDPDQKDVMR\

2IWHQDPDQILQGVKLPVHOIZHLJKLQJWKHFKRLFHEHWZHHQYDULRXVNLQGVRI

SOHDVXUHVDQGVRORQJDVKHKDVQRWGHFLGHGZKLFKNLQGKHZLOOFKRRVHWKH

KLJKHURUWKHORZHUKHKDVQRLQQHUSHDFH2QO\ZKHQKHFOHDUO\UHFRJQL]HV

WKDWSDVVLRQEULQJVVXIIHULQJFDQKHPDNHXSKLVPLQGWRWXUQDZD\IURPWKH

ORZHUSOHDVXUHVDQGWRVWULYHIRUWKHKLJKHU2QFHWKLVGHFLVLRQLVVHDOHGKH

ILQGVWUXHMR\DQGSHDFHDQGLQQHUFRQIOLFWLVRYHUFRPH

ƒ1LQHLQWKHILIWKSODFHPHDQV

6LQFHULW\WRZDUGGLVLQWHJUDWLQJLQIOXHQFHVLVGDQJHURXV

'DQJHURXVHOHPHQWVDSSURDFKHYHQWKHIDUEHVWRIPHQ,IDPDQSHUPLWV

KLPVHOIWRKDYHDQ\WKLQJWRGRZLWKWKHPWKHLUGLVLQWHJUDWLQJLQIOXHQFHDFWV

VORZO\EXWVXUHO\DQGLQHYLWDEOHEULQJVGDQJHUVLQLWVWUDLQ%XWLIKH

UHFRJQL]HVWKHVLWXDWLRQDQGFDQFRPSUHKHQGWKHGDQJHUKHNQRZVKRZWR

SURWHFWKLPVHOIDQGUHPDLQVXQKDUPHG

6L[DWWKHWRSPHDQV

6HGXFWLYHMR\RXVQHVV

$YDLQQDWXUHLQYLWHVGLYHUWLQJSOHDVXUHVDQGPXVWVXIIHUDFFRUGLQJO\FIWKH

VL[LQWKHWKLUGSODFH,IDPDQLVXQVWDEOHZLWKLQWKHSOHDVXUHVRIWKHZRUOG

WKDWKHGRHVQRWVKXQKDYHVRSRZHUIXODQLQIOXHQFHWKDWKHLVVZHSWDORQJE\

WKHP+HUHLWLVQRORQJHUDTXHVWLRQRIGDQJHURIJRRGIRUWXQHRU

PLVIRUWXQH+HKDVJLYHQXSGLUHFWLRQRIKLVRZQOLIHDQGZKDWEHFRPHVRI

background image

KLPGHSHQGVXSRQFKDQFHDQGH[WHUQDOLQIOXHQFHV

LQGH[

+XDQ'LVSHUVLRQ>'LVVROXWLRQ@

DERYH6817+(*(17/(:,1'

EHORZ.$17+($%<60$/:$7(5

:LQGEORZLQJRYHUZDWHUGLVSHUVHVLWGLVVROYLQJLWLQWRIRDPDQGPLVW7KLV

VXJJHVWVWKDWZKHQDPDQVYLWDOHQHUJ\LVGDPPHGXSZLWKLQKLPLQGLFDWHG

DVDGDQJHUE\WKHDWWULEXWHRIWKHORZHUWULJUDPJHQWOHQHVVVHUYHVWREUHDN

XSDQGGLVVROYHWKHEORFNDJH

7+(-8'*0(17

',63(56,216XFFHVV

7KHNLQJDSSURDFKHVKLVWHPSOH

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

3HUVHYHUDQFHIXUWKHUV

7KHWH[WRIWKLVKH[DJUDPUHVHPEOHVWKDWRI7VXL*$7+(5,1*72*(7+(5

,QWKHODWWHUWKHVXEMHFWLVWKHEULQJLQJWRJHWKHURIHOHPHQWVWKDWKDYH

EHHQVHSDUDWHGDVZDWHUFROOHFWVLQODNHVXSRQWKHHDUWK+HUHWKHVXEMHFWLV

WKHGLVSHUVLQJDQGGLVVROYLQJRIGLYLVLYHHJRWLVP',63(56,21VKRZVWKH

ZD\VRWRVSHDNWKDWOHDGVWRJDWKHULQJWRJHWKHU7KLVH[SODLQVWKHVLPLODULW\

RIWKHWZRWH[WV

5HOLJLRXVIRUFHVDUHQHHGHGWRRYHUFRPHWKHHJRWLVPWKDWGLYLGHVPHQ7KH

FRPPRQFHOHEUDWLRQRIWKHJUHDWVDFULILFLDOIHDVWVDQGVDFUHGULWHVZKLFKJDYH

H[SUHVVLRQVLPXOWDQHRXVO\WRWKHLQWHUUHODWLRQDQGVRFLDODUWLFXODWLRQRIWKH

IDPLO\DQGVWDWHZDVWKHPHDQVRIHPSOR\HGE\WKHJUHDWUXOHUWRXQLWHPHQ

7KHVDFUHGPXVLFDQGWKHVSOHQGRURIWKHFHUHPRQLHVDURXVHGDVWURQJWLGHRI

HPRWLRQWKDWZDVVKDUHGE\DOOKHDUWVLQXQLVRQDQGWKDWDZDNHQHGD

FRQVFLRXVQHVVRIWKHFRPPRQRULJLQRIDOOFUHDWXUHV,QWKLVZD\GLVXQLW\ZDV

RYHUFRPHDQGULJLGLW\GLVVROYHG$IXUWKHUPHDQVWRWKHVDPHHQGLVFR

RSHUDWLRQLQJUHDWJHQHUDOXQGHUWDNLQJVWKDWVHWDKLJKJRDOIRUWKHZLOORIWKH

SHRSOHLQWKHFRPPRQFRQFHQWUDWLRQRQWKLVJRDODOOEDUULHUVGLVVROYHMXVW

DVZKHQDERDWLVFURVVLQJDJUHDWVWUHDPDOOKDQGVPXVWXQLWHLQDMRLQWWDVN

%XWRQO\DPDQZKRLVKLPVHOIIUHHRIDOOVHOILVKXOWHULRUFRQVLGHUDWLRQVDQG

ZKRSHUVHYHUHVLQMXVWLFHDQGVWHDGIDVWQHVVLVFDSDEOHRIVRGLVVROYLQJWKH

KDUGQHVVRIHJRWLVP

7+(,0$*(

7KHZLQGGULYHVRYHUWKHZDWHU

7KHLPDJHRI',63(56,21

7KXVWKHNLQJVRIROGVDFULILFHGWRWKH/RUG

background image

$QGEXLOWWHPSOHV

,QWKHDXWXPQDQGZLQWHUZDWHUEHJLQVWRIUHH]HLQWRLFH:KHQWKHZDUP

EUHH]HVRIVSULQJFRPHWKHULJLGLW\LVGLVVROYHGDQGWKHHOHPHQWVWKDWKDYH

EHHQGLVSHUVHGLQLFHIORHVDUHUHXQLWHG,WLVWKHVDPHZLWKWKHPLQGVRIWKH

SHRSOH7KURXJKKDUGQHVVDQGVHOILVKQHVVWKHKHDUWJURZVULJLGDQGWKLV

ULJLGLW\OHDGVWRVHSDUDWLRQIURPDOORWKHUV(JRWLVPDQGFXSLGLW\LVRODWHPHQ

7KHUHIRUHWKHKHDUWVRIPHQPXVWEHVHL]HGE\DGHYRXWHPRWLRQ7KH\PXVW

EHVKDNHQE\DUHOLJLRXVDZHLQIDFHRIHWHUQLW\VWLUUHGZLWKDQLQWXLWLRQRIWKH

2QH&UHDWRURIDOOOLYLQJEHLQJVDQGXQLWHGWKURXJKWKHVWURQJIHHOLQJRI

IHOORZVKLSH[SHULHQFHGLQWKHULWXDORIGLYLQHZRUVKLS

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

+HEULQJVKHOSZLWKWKHVWUHQJWKRIDKRUVH

*RRGIRUWXQH

,WLVLPSRUWDQWWKDWGLVXQLRQVKRXOGEHRYHUFRPHDWWKHRXWVHWEHIRUHLWKDV

EHFRPHFRPSOHWHWKDWWKHFORXGVVKRXOGEHGLVSHUVHGEHIRUHWKH\KDYH

EURXJKWVWRUPDQGUDLQ$WVXFKWLPHVZKHQKLGGHQGLYHUJHQFHVLQWHPSHU

PDNHWKHPVHOYHVIHOWDQGOHDGWRPXWXDOPLVXQGHUVWDQGLQJVZHPXVWWDNH

TXLFNDQGYLJRURXVDFWLRQWRGLVVROYHWKHPLVXQGHUVWDQGLQJVDQGPXWXDO

GLVWUXVW

1LQHLQWKHVHFRQGSODFHPHDQV

$WWKHGLVVROXWLRQ

+HKXUULHVWRWKDWZKLFKVXSSRUWVKLP

5HPRUVHGLVDSSHDUV

:KHQDQLQGLYLGXDOGLVFRYHUVZLWKLQKLPVHOIWKHEHJLQQLQJVRIDOLHQDWLRQ

IURPRWKHUVRIPLVDQWKURS\DQGLOOKXPRUKHPXVWVHWDERXWGLVVROYLQJ

WKHVHREVWUXFWLRQV+HPXVWURXVHKLPVHOILQZDUGO\KDVWHQWRWKDWZKLFK

VXSSRUWVKLP6XFKVXSSRUWLVQHYHUIRXQGLQKDWUHGEXWDOZD\VLQD

PRGHUDWHDQGMXVWMXGJPHQWRIPHQOLQNHGZLWKJRRGZLOO,IKHUHJDLQVWKLV

XQREVWUXFWHGRXWORRNRQKXPDQLW\ZKLOHDWWKHVDPHWLPHDOOVDWXUQLQHLOO

KXPRULVGLVVROYHGDOORFFDVLRQIRUUHPRUVHGLVDSSHDUV

6L[LQWKHWKLUGSODFHPHDQV

+HGLVVROYHVKLVVHOI1RUHPRUVH

8QGHUFHUWDLQFLUFXPVWDQFHVDPDQVZRUNPD\EHFRPHVRGLIILFXOWWKDWKH

FDQQRORQJHUWKLQNRIKLPVHOI+HPXVWVHWDVLGHDOOSHUVRQDOGHVLUHVDQG

GLVSHUVHZKDWHYHUWKHVHOIJDWKHUVDERXWLWWRVHUYHDVDEDUULHUDJDLQVWRWKHUV

2QO\RQWKHEDVLVRIJUHDWUHQXQFLDWLRQFDQKHREWDLQWKHVWUHQJWKIRUJUHDW

DFKLHYHPHQWV%\VHWWLQJKLVJRDOLQDJUHDWWDVNRXWVLGHKLPVHOIKHFDQ

DWWDLQWKLVVWDQGSRLQW

background image

6L[LQWKHIRXUWKSODFHPHDQV

+HGLVVROYHVKLVERQGZLWKKLVJURXS

6XSUHPHJRRGIRUWXQH

'LVSHUVLRQOHDGVLQWXUQWRDFFXPXODWLRQ

7KLVLVVRPHWKLQJWKDWRUGLQDU\PHQGRQRWWKLQNRI

:KHQZHDUHZRUNLQJDWDWDVNWKDWDIIHFWVWKHJHQHUDOZHOIDUHZHPXVWOHDYH

DOOSULYDWHIULHQGVKLSVRXWRIDFFRXQW2QO\E\ULVLQJDERYHSDUW\LQWHUHVWVFDQ

ZHDFKLHYHVRPHWKLQJGHFLVLYH+HZKRKDVWKHFRXUDJHWKXVWRIRUHJRZKDW

LVQHDUZLQVZKDWLVDIDU%XWLQRUGHUWRFRPSUHKHQGWKLVVWDQGSRLQWRQH

PXVWKDYHDZLGHYLHZRIWKHLQWHUUHODWLRQVKLSVRIOLIHVXFKDVRQO\XQXVXDO

PHQDWWDLQ

ƒ1LQHLQWKHILIWKSODFHPHDQV

+LVORXGFULHVDUHDVGLVVROYLQJDVVZHDW

'LVVROXWLRQ$NLQJDELGHVZLWKRXWEODPH

,QWLPHVRIJHQHUDOGLVSHUVLRQDQGVHSDUDWLRQDJUHDWLGHDSURYLGHVDIRFDO

SRLQWIRUWKHRUJDQL]DWLRQRIUHFRYHU\-XVWDVDQLOOQHVVUHDFKHVLWVFULVLVLQD

GLVVROYLQJVZHDWVRDJUHDWVWLPXODWLQJLGHDLVDWUXHVDOYDWLRQLQWLPHVRI

JHQHUDOGHDGORFN,WJLYHVWKHSHRSOHDUDOO\LQJSRLQWDPDQLQDUXOLQJ

SRVLWLRQZKRFDQGLVSHOPLVXQGHUVWDQGLQJV

1LQHDWWKHWRSPHDQV

+HGLVVROYHVKLVEORRG

'HSDUWLQJNHHSLQJDWDGLVWDQFHJRLQJRXW

,VZLWKRXWEODPH

7KHLGHDRIWKHGLVVROYLQJRIDPDQVEORRGPHDQVWKHGLVSHUVLRQRIWKDW

ZKLFKPLJKWOHDGWREORRGVKHGDQGZRXQGVLHDYRLGDQFHRIGDQJHU%XW

KHUHWKHWKRXJKWLVQRWWKDWDPDQDYRLGVGLIILFXOWLHVIRUKLPVHOIDORQHEXW

UDWKHUWKDWKHUHVFXHVKLVNLQKHOSVWKHPWRJHWDZD\EHIRUHGDQJHUFRPHVRU

WRNHHSDWDGLVWDQFHIURPDQH[LVWLQJGDQJHURUWRILQGDZD\RXWRIDGDQJHU

WKDWLVDOUHDG\XSRQWKHP,QWKLVZD\KHGRHVZKDWLVULJKW

LQGH[

&KLHK/LPLWDWLRQ

DERYH.$17+($%<60$/:$7(5

EHORZ78,7+(-2<286/$.(

$ODNHRFFXSLHVDOLPLWHGVSDFH:KHQPRUHZDWHUFRPHVLQWRLWLW

RYHUIORZV7KHUHIRUHOLPLWVPXVWEHVHWIRUWKHZDWHU7KHLPDJHVKRZV

ZDWHUEHORZDQGZDWHUDERYHZLWKWKHILUPDPHQWEHWZHHQWKHPDVDOLPLW

7KH&KLQHVHZRUGIRUOLPLWDWLRQUHDOO\GHQRWHVWKHMRLQWVWKDWGLYLGHD

EDPERRVWDON,QUHODWLRQWRRUGLQDU\OLIHLWPHDQVWKHWKULIWWKDWVHWVIL[HG

background image

OLPLWVXSRQH[SHQGLWXUHV,QUHODWLRQWRWKHPRUDOVSKHUHLWPHDQVWKHIL[HG

OLPLWVWKDWWKHVXSHULRUPDQVHWVXSRQKLVDFWLRQVWKHOLPLWVRIOR\DOW\DQG

GLVLQWHUHVWHGQHVV

7+(-8'*0(17

/,0,7$7,216XFFHVV

*DOOLQJOLPLWDWLRQPXVWQRWEHSHUVHYHUHGLQ

/LPLWDWLRQVDUHWURXEOHVRPHEXWWKH\DUHHIIHFWLYH,IZHOLYHHFRQRPLFDOO\

LQQRUPDOWLPHVZHDUHSUHSDUHGIRUWLPHVRIZDQW7REHVSDULQJVDYHVXV

IURPKXPLOLDWLRQ/LPLWDWLRQVDUHDOVRLQGLVSHQVDEOHLQWKHUHJXODWLRQRI

ZRUOGFRQGLWLRQV,QQDWXUHWKHUHDUHIL[HGOLPLWVIRUVXPPHUDQGZLQWHU

GD\DQGQLJKWDQGWKHVHOLPLWVJLYHWKH\HDULWVPHDQLQJ,QWKHVDPHZD\

HFRQRP\E\VHWWLQJIL[HGOLPLWVXSRQH[SHQGLWXUHVDFWVWRSUHVHUYHSURSHUW\

DQGSUHYHQWLQMXU\WRWKHSHRSOH

%XWLQOLPLWDWLRQZHPXVWREVHUYHGXHPHDVXUH,IDPDQVKRXOGVHHNWR

LPSRVHJDOOLQJOLPLWDWLRQVXSRQKLVRZQQDWXUHLWZRXOGEHLQMXULRXV$QG

LIKHVKRXOGJRWRRIDULQLPSRVLQJOLPLWDWLRQVRQRWKHUVWKH\ZRXOGUHEHO

7KHUHIRUHLWLVQHFHVVDU\WRVHWOLPLWVHYHQXSRQOLPLWDWLRQ

7+(,0$*(

:DWHURYHUODNHWKHLPDJHRI/,0,7$7,21

7KXVWKHVXSHULRUPDQ

&UHDWHVQXPEHUDQGPHDVXUH

$QGH[DPLQHVWKHQDWXUHRIYLUWXHDQGFRUUHFWFRQGXFW

$ODNHLVVRPHWKLQJOLPLWHG:DWHULVLQH[KDXVWLEOH$ODNHFDQFRQWDLQRQO\

DGHILQLWHDPRXQWRIWKHLQILQLWHTXDQWLW\RIZDWHUWKLVLVLWVSHFXOLDULW\,Q

KXPDQOLIHWRRWKHLQGLYLGXDODFKLHYHVVLJQLILFDQFHWKURXJKGLVFULPLQDWLRQ

DQGWKHVHWWLQJRIOLPLWV7KHUHIRUHZKDWFRQFHUQVXVKHUHLVWKHSUREOHPRI

FOHDUO\GHILQLQJWKHVHGLVFULPLQDWLRQVZKLFKDUHVRWRVSHDNWKHEDFNERQHRI

PRUDOLW\8QOLPLWHGSRVVLELOLWLHVDUHQRWVXLWHGWRPDQLIWKH\H[LVWHGKLVOLIH

ZRXOGRQO\GLVVROYHLQWKHERXQGOHVV7REHFRPHVWURQJDPDQVOLIHQHHGV

WKHOLPLWDWLRQVRUGDLQHGE\GXW\DQGYROXQWDULO\DFFHSWHG7KHLQGLYLGXDO

DWWDLQVVLJQLILFDQFHDVDIUHHVSLULWRQO\E\VXUURXQGLQJKLPVHOIZLWKWKHVH

OLPLWDWLRQVDQGE\GHWHUPLQLQJIRUKLPVHOIZKDWKLVGXW\LV

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

1RWJRLQJRXWRIWKHGRRUDQGWKHFRXUW\DUG

,VZLWKRXWEODPH

2IWHQDPDQZKRZRXOGOLNHWRXQGHUWDNHVRPHWKLQJILQGVKLPVHOI

FRQIURQWHGE\LQVXUPRXQWDEOHOLPLWDWLRQV7KHQKHPXVWNQRZZKHUHWR

VWRS,IKHULJKWO\XQGHUVWDQGVWKLVDQGGRHVQRWJREH\RQGWKHOLPLWVVHWIRU

background image

KLPKHDFFXPXODWHVDQHQHUJ\WKDWHQDEOHVKLPZKHQWKHSURSHUWLPH

FRPHVWRDFWZLWKJUHDWIRUFH'LVFUHWLRQLVRISULPHLPSRUWDQFHLQSUHSDULQJ

WKHZD\IRUPRPHQWRXVWKLQJV&RQFHUQLQJWKLV&RQIXFLXVVD\V

:KHUHGLVRUGHUGHYHORSVZRUGVDUHWKHILUVWVWHSV,IWKHSULQFHLVQRWGLVFUHHW

KHORVHVKLVVHUYDQW,IWKHVHUYDQWLVQRWGLVFUHHWKHORVHVKLVOLIH,I

JHUPLQDWLQJWKLQJVDUHQRWKDQGOHGZLWKGLVFUHWLRQWKHSHUIHFWLQJRIWKHPLV

LPSHGHG7KHUHIRUHWKHVXSHULRUPDQLVFDUHIXOWRPDLQWDLQVLOHQFHDQGGRHV

QRWJRIRUWK

1LQHLQWKHVHFRQGSODFHPHDQV

1RWJRLQJRXWRIWKHJDWHDQGWKHFRXUW\DUG

%ULQJVPLVIRUWXQH

:KHQWKHWLPHIRUDFWLRQKDVFRPHWKHPRPHQWPXVWEHTXLFNO\VHL]HG-XVW

DVZDWHUILUVWFROOHFWVLQDODNHZLWKRXWIORZLQJRXW\HWLVFHUWDLQWRILQGDQ

RXWOHWZKHQWKHODNHLVIXOOVRLWLVLQWKHOLIHRIPDQ,WLVDJRRGWKLQJWR

KHVLWDWHVRORQJDVWKHWLPHIRUDFWLRQKDVQRWFRPHEXWQRORQJHU2QFHWKH

REVWDFOHVWRDFWLRQKDYHEHHQUHPRYHGDQ[LRXVKHVLWDWLRQLVDPLVWDNHWKDWLV

ERXQGWREULQJGLVDVWHUEHFDXVHRQHPLVVHVRQHVRSSRUWXQLW\

6L[LQWKHWKLUGSODFHPHDQV

+HZKRNQRZVOLPLWDWLRQ

:LOOKDYHFDXVHWRODPHQW

1REODPH

,IDQLQGLYLGXDOLVEHQWRQO\RQSOHDVXUHVDQGHQMR\PHQWLWLVHDV\IRUKLPWR

ORVHKLVVHQVHRIWKHOLPLWVWKDWDUHQHFHVVDU\,IKHJLYHVKLPVHOIRYHUWR

H[WUDYDJDQFHKHZLOOKDYHWRVXIIHUWKHFRQVHTXHQFHVZLWKDFFRPSDQ\LQJ

UHJUHW+HPXVWQRWVHHNWROD\WKHEODPHRQRWKHUV2QO\ZKHQZHUHDOL]H

WKDWRXUPLVWDNHVDUHRIRXURZQPDNLQJZLOOVXFKGLVDJUHHDEOHH[SHULHQFHV

IUHHXVRIHUURUV

6L[LQWKHIRXUWKSODFHPHDQV

&RQWHQWHGOLPLWDWLRQ6XFFHVV

(YHU\OLPLWDWLRQKDVLWVYDOXHEXWDOLPLWDWLRQWKDWUHTXLUHVSHUVLVWHQWHIIRUW

HQWDLOVDFRVWRIWRRPXFKHQHUJ\:KHQKRZHYHUWKHOLPLWDWLRQLVDQDWXUDO

RQHDVIRUH[DPSOHWKHOLPLWDWLRQE\ZKLFKZDWHUIORZVRQO\GRZQKLOOLW

QHFHVVDULO\OHDGVWRVXFFHVVIRUWKHQLWPHDQVDVDYLQJRIHQHUJ\7KHHQHUJ\

WKDWRWKHUZLVHZRXOGEHFRQVXPHGLQDYDLQVWUXJJOHZLWKWKHREMHFWLV

DSSOLHGZKROO\WRWKHEHQHILWRIWKHPDWWHULQKDQGDQGVXFFHVVLVDVVXUHG

ƒ1LQHLQWKHILIWKSODFHPHDQV

6ZHHWOLPLWDWLRQEULQJVJRRGIRUWXQH

*RLQJEULQJVHVWHHP

7KHOLPLWDWLRQPXVWEHFDUULHGRXWLQWKHULJKWZD\LILWLVWREHHIIHFWLYH,IZH

background image

VHHNWRLPSRVHUHVWULFWLRQVRQRWKHUVRQO\ZKLOHHYDGLQJWKHPRXUVHOYHV

WKHVHUHVWULFWLRQVZLOODOZD\VEHUHVHQWHGDQGZLOOSURYRNHUHVLVWDQFH,I

KRZHYHUDPDQLQDOHDGLQJSRVLWLRQDSSOLHVWKHOLPLWDWLRQILUVWWRKLPVHOI

GHPDQGLQJOLWWOHIURPWKRVHDVVRFLDWHGZLWKKLPDQGZLWKPRGHVWPHDQV

PDQDJHVWRDFKLHYHVRPHWKLQJJRRGIRUWXQHLVWKHUHVXOW:KHUHVXFKDQ

H[DPSOHRFFXUVLWPHHWVZLWKHPXODWLRQVRWKDWZKDWHYHULVXQGHUWDNHQ

PXVWVXFFHHG

6L[DWWKHWRSPHDQV

*DOOLQJOLPLWDWLRQ

3HUVHYHUDQFHEULQJVPLVIRUWXQH

5HPRUVHGLVDSSHDUV

,IRQHLVWRRVHYHUHLQVHWWLQJXSUHVWULFWLRQVSHRSOHZLOOQRWHQGXUHWKHP

7KHPRUHFRQVLVWHQWVXFKVHYHULW\WKHZRUVHLWLVIRULQWKHORQJUXQD

UHDFWLRQLVXQDYRLGDEOH,QWKHVDPHZD\WKHWRUPHQWHGERG\ZLOOUHEHO

DJDLQVWH[FHVVLYHDVFHWLFLVP2QWKHRWKHUKDQGDOWKRXJKUXWKOHVVVHYHULW\LV

QRWWREHDSSOLHGSHUVLVWHQWO\DQGV\VWHPDWLFDOO\WKHUHPD\EHWLPHVZKHQLW

VL

WKHRQO\PHDQVRIVDIHJXDUGLQJDJDLQVWJXLOWDQGUHPRUVH,QVXFKVLWXDWLRQV

UXWKOHVVQHVVWRZDUGRQHVHOILVWKHRQO\PHDQVRIVDYLQJRQHVVRXOZKLFK

RWKHUZLVHZRXOGVXFFXPEWRLUUHVROXWLRQDQGWHPSWDWLRQ

LQGH[

&KXQJ)X,QQHU7UXWK

DERYH6817+(*(17/(:,1'

EHORZ78,7+(-2<286/$.(

7KHZLQGEORZVRYHUWKHODNHDQGVWLUVWKHVXUIDFHRIWKHZDWHU7KXVYLVLEOH

HIIHFWVRIWKHLQYLVLEOHPDQLIHVWWKHPVHOYHV7KHKH[DJUDPFRQVLVWVRIILUP

OLQHVDERYHDQGEHORZZKLOHLWLVRSHQLQWKHFHQWHU7KLVLQGLFDWHVDKHDUW

IUHHRISUHMXGLFHVDQGWKHUHIRUHRSHQWRWUXWK2QWKHRWKHUKDQGHDFKRIWKH

WZRWULJUDPVKDVDILUPOLQHLQWKHPLGGOHWKLVLQGLFDWHVWKHIRUFHRILQQHU

WUXWKLQWKHLQIOXHQFHVWKH\SUHVHQW

7KHDWWULEXWHVRIWKHWZRWULJUDPVDUHDERYHJHQWOHQHVVIRUEHDUDQFH

WRZDUGLQIHULRUVEHORZMR\RXVQHVVLQREH\LQJVXSHULRUV6XFKFRQGLWLRQV

FUHDWHWKHEDVLVRIDPXWXDOFRQILGHQFHWKDWPDNHVDFKLHYHPHQWVSRVVLEOH

7KHFKDUDFWHURIIXWUXWKLVDFWXDOO\WKHSLFWXUHRIDELUGVIRRWRYHUD

IOHGJOLQJ,WVXJJHVWVWKHLGHDRIEURRGLQJ$QHJJLVKROORZ7KHOLJKWJLYLQJ

SRZHUPXVWZRUNWRTXLFNHQLWIURPRXWVLGHEXWWKHUHPXVWEHDJHUPRIOLIH

ZLWKLQLIOLIHLVWREHDZDNHQHG)DUUHDFKLQJVSHFXODWLRQVFDQEHOLQNHGZLWK

WKHVHLGHDV

7+(-8'*0(17

background image

,11(57587+3LJVDQGILVKHV

*RRGIRUWXQH

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

3HUVHYHUDQFHIXUWKHUV

3LJVDQGILVKHVDUHWKHOHDVWLQWHOOLJHQWRIDOODQLPDOVDQGWKHUHIRUHWKHPRVW

GLIILFXOWWRLQIOXHQFH7KHIRUFHRILQQHUWUXWKPXVWJURZJUHDWLQGHHGEHIRUH

LWVLQIOXHQFHFDQH[WHQGWRVXFKFUHDWXUHV,QGHDOLQJZLWKSHUVRQVDV

LQWUDFWDEOHDQGDVGLIILFXOWWRLQIOXHQFHDVDSLJRUDILVKWKHZKROHVHFUHWRI

VXFFHVVGHSHQGVRQILQGLQJWKHULJKWZD\RIDSSURDFK2QHPXVWILUVWULG

RQHVHOIRIDOOSUHMXGLFHDQGVRWRVSHDNOHWWKHSV\FKHRIWKHRWKHUSHUVRQDFW

RQRQHZLWKRXWUHVWUDLQW7KHQRQHZLOOHVWDEOLVKFRQWDFWZLWKKLP

XQGHUVWDQGDQGJDLQSRZHURYHUKLP:KHQDGRRUKDVWKXVEHHQRSHQHG

WKHIRUFHRIRQHVSHUVRQDOLW\ZLOOLQIOXHQFHKLP,ILQWKLVZD\RQHILQGVQR

REVWDFOHVLQVXUPRXQWDEOHRQHFDQXQGHUWDNHHYHQWKHPRVWGDQJHURXV

WKLQJVVXFKDVFURVVLQJWKHJUHDWZDWHUDQGVXFFHHG

%XWLWLVLPSRUWDQWWRXQGHUVWDQGXSRQZKDWWKHIRUFHLQQHUWUXWKGHSHQGV

7KLVIRUFHLVQRWLGHQWLFDOZLWKVLPSOHLQWLPDF\RUDVHFUHWERQG&ORVHWLHV

PD\H[LVWDOVRDPRQJWKLHYHVLWLVWUXHWKDWVXFKDERQGDFWVDVDIRUFHEXW

VLQFHLWLVQRWLQYLQFLEOHLWGRHVQRWEULQJJRRGIRUWXQH$OODVVRFLDWLRQRQ

WKHEDVLVRIFRPPRQLQWHUHVWVKROGVRQO\XSWRDFHUWDLQSRLQW:KHUHWKH

FRPPXQLW\RILQWHUHVWFHDVHVWKHKROGLQJWRJHWKHUFHDVHVDOVRDQGWKHFORVHVW

IULHQGVKLSRIWHQFKDQJHVLQWRKDWH2QO\ZKHQWKHERQGLVEDVHGRQZKDWLV

ULJKWRQVWHDGIDVWQHVVZLOOLWUHPDLQVRILUPWKDWLWWULXPSKVRYHU

HYHU\WKLQJ

7+(,0$*(

:LQGRYHUODNHWKHLPDJHRI,11(57587+

7KXVWKHVXSHULRUPDQGLVFXVVHVFULPLQDOFDVHV

,QRUGHUWRGHOD\H[HFXWLRQV

:LQGVWLUVZDWHUE\SHQHWUDWLQJLW7KXVWKHVXSHULRUPDQZKHQREOLJHGWR

MXGJHWKHPLVWDNHVRIPHQWULHVWRSHQHWUDWHWKHLUPLQGVZLWKXQGHUVWDQGLQJ

LQRUGHUWRJDLQDV\PSDWKHWLFDSSUHFLDWLRQRIWKHFLUFXPVWDQFHV,QDQFLHQW

&KLQDWKHHQWLUHDGPLQLVWUDWLRQRIMXVWLFHZDVJXLGHGE\WKLVSULQFLSOH$

GHHSXQGHUVWDQGLQJWKDWNQRZVKRZWRSDUGRQZDVFRQVLGHUHGWKHKLJKHVW

IRUPRIMXVWLFH7KLVV\VWHPZDVQRWZLWKRXWVXFFHVVIRULWVDLPZDVWRPDNH

VRVWURQJDPRUDOLPSUHVVLRQWKDWWKHUHZDVQRUHDVRQWRIHDUDEXVHRIVXFK

PLOGQHVV)RULWVSUDQJQRWIURPZHDNQHVVEXWIURPDVXSHULRUFODULW\

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

%HLQJSUHSDUHGEULQJVJRRGIRUWXQH

,IWKHUHDUHVHFUHWGHVLJQVLWLVGLVTXLHWLQJ

7KHIRUFHRILQQHUWUXWKGHSHQGVFKLHIO\RQLQQHUVWDELOLW\DQGSUHSDUHGQHVV

background image

)URPWKLVVWDWHRIPLQGVSULQJVWKHFRUUHFWDWWLWXGHWRZDUGWKHRXWHUZRUOG

%XWLIDPDQVKRXOGWU\WRFXOWLYDWHVHFUHWUHODWLRQVKLSVRIDVSHFLDOVRUWLW

ZRXOGGHSULYHKLPRIKLVLQQHULQGHSHQGHQFH7KHPRUHUHOLDQFHKHSODFHV

RQWKHVXSSRUWRIRWKHUVWKHPRUHXQHDV\DQGDQ[LRXVKHZLOOEHFRPHDVWR

ZKHWKHUWKHVHVHFUHWWLHVDUHUHDOO\WHQDEOH,QWKLVZD\LQQHUSHDFHDQGWKH

IRUFHRILQQHUWUXWKDUHORVW

1LQHLQWKHVHFRQGSODFHPHDQV

$FUDQHFDOOLQJLQWKHVKDGH

,WV\RXQJDQVZHUVLW

,KDYHDJRRGJREOHW

,ZLOOVKDUHLWZLWK\RX

7KLVUHIHUVWRWKHLQYROXQWDU\LQIOXHQFHRIDPDQVLQQHUEHLQJXSRQSHUVRQV

RINLQGUHGVSLULW7KHFUDQHQHHGQRWVKRZLWVHOIRQDKLJKKLOO,WPD\EH

TXLWHKLGGHQZKHQLWVRXQGVLWVFDOO\HWLWV\RXQJZLOOKHDULWVQRWZLOO

UHFRJQL]HLWDQGJLYHDQVZHU:KHUHWKHUHLVDMR\RXVPRRGWKHUHDFRPUDGH

ZLOODSSHDUWRVKDUHDJODVVRIZLQH

7KLVLVWKHHFKRDZDNHQHGLQPHQWKURXJKVSLULWXDODWWUDFWLRQ:KHQHYHU

DIHHOLQJLVYRLFHGZLWKWUXWKDQGIUDQNQHVVZKHQHYHUDGHHGLVWKHFOHDU

H[SUHVVLRQRIVHQWLPHQWDP\VWHULRXVDQGIDUUHDFKLQJLQIOXHQFHLVH[HUWHG

$WILUVWLWDFWVRQWKRVHZKRDUHLQZDUGO\UHFHSWLYH%XWWKHFLUFOHJURZVODUJHU

DQGODUJHU7KHURRWRIDOOLQIOXHQFHOLHVLQRQHVRZQLQQHUEHLQJJLYHQWUXH

DQGYLJRURXVH[SUHVVLRQLQZRUGDQGGHHGLWVHIIHFWLVJUHDW7KHHIIHFWLVEXW

WKHUHIOHFWLRQRIVRPHWKLQJWKDWHPDQDWHVIURPRQHVRZQKHDUW$Q\

GHOLEHUDWHLQWHQWLRQRIDQHIIHFWZRXOGRQO\GHVWUR\WKHSRVVLELOLW\RI

SURGXFLQJLW&RQIXFLXVVD\VDERXWWKLVOLQH

7KHVXSHULRUPDQDELGHVLQKLVURRP,IKLVZRUGVDUHZHOOVSRNHQKHPHHWV

ZLWKDVVHQWDWDGLVWDQFHRIPRUHWKDQDWKRXVDQGPLOHV+RZPXFKPRUH

WKHQIURPQHDUE\,IWKHVXSHULRUPDQDELGHVLQKLVURRPDQGKLVZRUGVDUH

QRWZHOOVSRNHQKHPHHWVZLWKFRQWUDGLFWLRQDWDGLVWDQFHRIPRUHWKDQD

WKRXVDQGPLOHV+RZPXFKPRUHWKHQIURPQHDUE\:RUGVJRIRUWKIURP

RQHVRZQSHUVRQDQGH[HUWWKHLULQIOXHQFHRQPHQ'HHGVDUHERUQFORVHDW

KDQGDQGEHFRPHYLVLEOHIDUDZD\:RUGVDQGGHHGVDUHWKHKLQJHDQG

ERZVSULQJRIWKHVXSHULRUPDQ$VKLQJHDQGERZVSULQJPRYHWKH\EULQJ

KRQRURUGLVJUDFH7KURXJKZRUGVDQGGHHGVWKHVXSHULRUPDQPRYHV

KHDYHQDQGHDUWK0XVWRQHQRWWKHQEHFDXWLRXV"

6L[LQWKHWKLUGSODFHPHDQV

+HILQGVDFRPUDGH

1RZKHEHDWVWKHGUXPQRZKHVWRSV

1RZKHVREVQRZKHVLQJV

+HUHWKHVRXUFHRIDPDQVVWUHQJWKOLHVQRWLQKLPVHOIEXWLQKLVUHODWLRQWR

RWKHUSHRSOH1RPDWWHUKRZFORVHWRWKHPKHPD\EHLIKLVFHQWHURIJUDYLW\

GHSHQGVRQWKHPKHLVLQHYLWDEO\WRVVHGWRDQGIUREHWZHHQMR\DQGVRUURZ

5HMRLFLQJWRKLJKKHDYHQWKHQVDGXQWRGHDWKWKLVLVWKHIDWHRIWKRVHZKR

background image

GHSHQGXSRQDQLQQHUDFFRUGZLWKRWKHUSHUVRQVZKRPWKH\ORYH+HUHZH

KDYHRQO\WKHVWDWHPHQWRIWKHODZWKDWWKLVLVVR:KHWKHUWKLVFRQGLWLRQLV

IHOWWREHDQDIIOLFWLRQRIWKHVXSUHPHKDSSLQHVVRIORYHLVOHIWWRWKH

VXEMHFWLYHYHUGLFWRIWKHSHUVRQFRQFHUQHG

6L[LQWKHIRXUWKSODFHPHDQV

7KHPRRQQHDUO\DWWKHIXOO

7KHWHDPKRUVHJRHVDVWUD\

1REODPH

7RLQWHQVLI\WKHSRZHURILQQHUWUXWKDPDQPXVWDOZD\VWXUQWRKLV

VXSHULRUIURPZKRPKHFDQUHFHLYHHQOLJKWHQPHQWDVWKHPRRQUHFHLYHV

OLJKWIRUPWKHVXQ+RZHYHUWKLVUHTXLUHVDFHUWDLQKXPLOLW\OLNHWKDWRIWKH

PRRQZKHQLWLVQRW\HWTXLWHIXOO$WWKHPRPHQWZKHQWKHPRRQEHFRPHV

IXOODQGVWDQGVGLUHFWO\RSSRVLWHWKHVXQLWEHJLQVWRZDQH-XVWDVRQWKHRQH

KDQGZHPXVWEHKXPEOHDQGUHYHUHQWZKHQIDFHWRIDFHZLWKWKHVRXUFHRI

HQOLJKWHQPHQWVROLNHZLVHPXVWZHRQWKHRWKHUUHQRXQFHIDFWLRQDOLVP

DPRQJPHQ2QO\EHSXUVXLQJRQHVFRXUVHOLNHDKRUVHWKDWJRHVVWUDLJKW

DKHDGZLWKRXWORRNLQJVLGHZLVHDWLWVPDWHFDQRQHUHWDLQWKHLQQHUIUHHGRP

WKDWKHOSVRQHRQZDUG

ƒ1LQHLQWKHILIWKSODFHPHDQV

+HSRVVHVVHVWUXWKZKLFKOLQNVWRJHWKHU

1REODPH

7KLVGHVFULEHVWKHUXOHUZKRKROGVDOOHOHPHQWVWRJHWKHUE\WKHSRZHURIKLV

SHUVRQDOLW\2QO\ZKHQWKHVWUHQJWKRIKLVFKDUDFWHULVVRDPSOHWKDWKHFDQ

LQIOXHQFHDOOZKRDUHVXEMHFWWRKLPLVKHDVKHQHHGVWREH7KHSRZHURI

VXJJHVWLRQPXVWHPDQDWHIURPWKHUXOHU,WZLOOILUPO\NQLWWRJHWKHUDQG

XQLWHDOOKLVDGKHUHQWV:LWKRXWWKLVFHQWUDOIRUFHDOOH[WHUQDOXQLW\LVRQO\

GHFHSWLRQDQGEUHDNVGRZQDWWKHGHFLVLYHPRPHQW

1LQHDWWKHWRSPHDQV

&RFNFURZSHQHWUDWLQJWRKHDYHQ

3HUVHYHUDQFHEULQJVPLVIRUWXQH

7KHFRFNLVGHSHQGDEOH,WFURZVDWGDZQ%XWLWFDQQRWLWVHOIIO\WRKHDYHQ

,W

MXVWFURZV$PDQPD\FRXQWRQPHUHZRUGVWRDZDNHQIDLWK7KLVPD\

VXFFHHGQRZDQGWKHQEXWLISHUVLVWHGLQLWZLOOKDYHEDGFRQVHTXHQFHV

LQGH[

+VLDR.XR3UHSRQGHUDQFHRIWKH6PDOO

DERYH&+r17+($5286,1*7+81'(5

EHORZ.r1.((3,1*67,//02817$,1

background image

:KLOHLQWKHKH[DJUDP7D.XR35(321'(5$1&(2)7+(*5($7WKH

VWURQJOLQHVSUHSRQGHUDWHDQGDUHZLWKLQLQFORVHGEHWZHHQZHDNOLQHVDWWKH

WRSDQGERWWRPWKHSUHVHQWKH[DJUDPKDVZHDNOLQHVSUHSRQGHUDWLQJWKRXJK

KHUHDJDLQWKH\DUHRQWKHRXWVLGHWKHVWURQJOLQHVEHLQJZLWKLQ7KLVLQGHHG

LVWKHEDVLVRIWKHH[FHSWLRQDOVLWXDWLRQLQGLFDWHGE\WKHKH[DJUDP:KHQ

VWURQJOLQHVDUHRXWVLGHZHKDYHWKHKH[DJUDP,3529,',1*

1285,6+0(17RU&KXQJ)X,11(57587+QHLWKHUUHSUHVHQWV

DQGH[FHSWLRQDOVWDWH:KHQVWURQJHOHPHQWVZLWKLQSUHSRQGHUDWHWKH\

QHFHVVDULO\HQIRUFHWKHLUZLOO7KLVFUHDWHVVWUXJJOHDQGH[FHSWLRQDOFRQGLWLRQV

LQJHQHUDO%XWLQWKHSUHVHQWKH[DJUDPLWLVWKHZHDNHOHPHQWWKDWSHUIRUFH

PXVWPHGLDWHZLWKWKHRXWVLGHZRUOG,IDPDQRFFXSLHVDSRVLWLRQRI

DXWKRULW\IRUZKLFKKHLVE\QDWXUHUHDOO\LQDGHTXDWHH[WUDRUGLQDU\SUXGHQFH

LVQHFHVVDU\

7+(-8'*0(17

35(321'(5$1&(2)7+(60$//6XFFHVV

3HUVHYHUDQFHIXUWKHUV

6PDOOWKLQJVPD\EHGRQHJUHDWWKLQJVVKRXOGQRWEHGRQH

7KHIO\LQJELUGEULQJVWKHPHVVDJH

,WLVQRWZHOOWRVWULYHXSZDUG

,WLVZHOOWRUHPDLQEHORZ

*UHDWJRRGIRUWXQH

([FHSWLRQDOPRGHVW\DQGFRQVFLHQWLRXVQHVVDUHVXUHWREHUHZDUGHGZLWK

VXFFHVVKRZHYHULIDPDQLVQRWWRWKURZKLPVHOIDZD\LWLVLPSRUWDQWWKDW

WKH\VKRXOGQRWEHFRPHHPSW\IRUPDQGVXEVHUYLHQFHEXWEHFRPELQHG

DOZD\VZLWKDFRUUHFWGLJQLW\LQSHUVRQDOEHKDYLRU:HPXVWXQGHUVWDQGWKH

GHPDQGVRIWKHWLPHLQRUGHUWRILQGWKHQHFHVVDU\RIIVHWIRULWVGHILFLHQFLHV

DQGGDPDJHV,QDQ\HYHQWZHPXVWQRWFRXQWRQJUHDWVXFFHVVVLQFHWKH

UHTXLVLWHVWUHQJWKLVODFNLQJ,QWKLVOLHVWKHLPSRUWDQFHRIWKHPHVVDJHWKDW

RQHVKRXOGQRWVWULYHDIWHUORIW\WKLQJVEXWKROGWRORZO\WKLQJV

7KHVWUXFWXUHRIWKHKH[DJUDPJLYHVULVHWRWKHLGHDWKDWWKLVPHVVDJHLV

EURXJKWE\DELUG,Q7D.XR35(321'(5$1&(2)7+(*5($7WKH

IRXUVWURQJKHDY\OLQHVZLWKLQVXSSRUWHGRQO\E\WZRZHDNOLQHVZLWKRXW

JLYHWKHLPDJHRIDVDJJLQJULGJHSROH+HUHWKHVXSSRUWLQJZHDNOLQHVDUH

ERWKRXWVLGHDQGSUHSRQGHUDQWWKLVJLYHVWKHLPDJHRIDVRDULQJELUG%XWD

ELUGVKRXOGQRWWU\WRVXUSDVVLWVHOIDQGIO\LQWRWKHVXQLWVKRXOGGHVFHQGWR

WKHHDUWKZKHUHLWVQHVWLV,QWKLVZD\LWJLYHVWKHPHVVDJHFRQYH\HGE\WKH

KH[DJUDP

7+(,0$*(

7KXQGHURQWKHPRXQWDLQ

7KHLPDJHRI35(321'(5$1&(2)7+(60$//

7KXVLQKLVFRQGXFWWKHVXSHULRUPDQJLYHVSUHSRQGHUDQFHWRUHYHUHQFH

,QEHUHDYHPHQWKHJLYHVSUHSRQGHUDQFHWRJULHI

background image

,QKLVH[SHQGLWXUHVKHJLYHVSUHSRQGHUDQFHWRWKULIW

7KXQGHURQWKHPRXQWDLQLVGLIIHUHQWIURPWKXQGHURQWKHSODLQ,QWKH

PRXQWDLQVWKXQGHUVHHPVPXFKQHDUHURXWVLGHWKHPRXQWDLQVLWLVOHVV

DXGLEOHWKDQWKHWKXQGHURIDQRUGLQDU\VWRUP7KXVWKHVXSHULRUPDQ

GHULYHVDQLPSHUDWLYHIURPWKLVLPDJHKHPXVWDOZD\VIL[KLVH\HVPRUH

FORVHO\DQGPRUHGLUHFWO\RQGXW\WKDQGRHVWKHRUGLQDU\PDQHYHQWKRXJK

WKLVPLJKWPDNHKLVEHKDYLRUVHHPSHWW\WRWKHRXWVLGHZRUOG+HLV

H[FHSWLRQDOO\FRQVFLHQWLRXVLQKLVDFWLRQV,QEHUHDYHPHQWHPRWLRQPHDQV

PRUHWRKLPWKDQFHUHPRQLRXVQHVV,QDOOKLVSHUVRQDOH[SHQGLWXUHVKHLV

H[WUHPHO\VLPSOHDQGXQSUHWHQWLRXV,QFRPSDULVRQZLWKWKHPDQRIWKH

PDVVHVDOOWKLVPDNHVKLPVWDQGRXWDVH[FHSWLRQDO%XWWKHHVVHQWLDO

VLJQLILFDQFHRIKLVDWWLWXGHOLHVLQWKHIDFWWKDWLQH[WHUQDOPDWWHUVKHLVRQWKH

VLGHRIWKHORZO\

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

7KHELUGPHHWVZLWKPLVIRUWXQHWKURXJKIO\LQJ

$ELUGRXJKWWRUHPDLQLQWKHQHVWXQWLOLWLVIOHGJHG,ILWWULHVWRIO\EHIRUH

WKLVLWLQYLWHVPLVIRUWXQH([WUDRUGLQDU\PHDVXUHVVKRXOGEHUHVRUWHGWRRQO\

ZKHQDOOHOVHIDLOV$WILUVWZHRXJKWWRSXWXSZLWKWUDGLWLRQDOZD\VDVORQJ

DVSRVVLEOHRWKHUZLVHZHH[KDXVWRXUVHOYHVDQGRXUHQHUJ\DQGVWLOODFKLHYH

QRWKLQJ

ƒ6L[LQWKHVHFRQGSODFHPHDQV

6KHSDVVHVE\KHUDQFHVWRU

$QGPHHWVKHUDQFHVWUHVV

+HGRHVQRWUHDFKKLVSULQFH

$QGPHHWVWKHRIILFLDO

1REODPH

7ZRH[FHSWLRQDOVLWXDWLRQVDUHLQVWDQFHGKHUH,QWKHWHPSOHRIDQFHVWRUV

ZKHUHDOWHUQDWLRQRIJHQHUDWLRQVSUHYDLOVWKHJUDQGVRQVWDQGVRQWKHVDPH

VLGHDVWKHJUDQGIDWKHU+HQFHKLVFORVHVWUHODWLRQVDUHZLWKWKHJUDQGIDWKHU

7KHSUHVHQWOLQHGHVLJQDWHVWKHJUDQGVRQVZLIHZKRGXULQJWKHVDFULILFH

SDVVHVE\WKHDQFHVWRUDQGJRHVWRZDUGWKHDQFHVWUHVV7KLVXQXVXDOEHKDYLRU

LVKRZHYHUDQH[SUHVVLRQRIKHUPRGHVW\6KHYHQWXUHVUDWKHUWRDSSURDFK

WKHDQFHVWUHVVIRUVKHIHHOVUHODWHGWRKHUE\WKHLUFRPPRQVH[+HQFHKHUH

GHYLDWLRQIURPWKHUXOHLVQRWDPLVWDNH

$QRWKHULPDJHLVWKDWRIWKHRIILFLDOZKRLQFRPSOLDQFHZLWKUHJXODWLRQ

ILUVWVHHNVDQDXGLHQFHZLWKKLVSULQFH,IKHLVQRWVXFFHVVIXOLQWKLVKHGRHV

QRWWU\WRIRUFHDQ\WKLQJEXWJRHVDERXWFRQVFLHQWLRXVIXOILOOPHQWRIKLVGXW\

WDNLQJKLVSODFHDPRQJWKHRWKHURIILFLDOV7KLVH[WUDRUGLQDU\UHVWUDLQWLV

OLNHZLVHQRWDPLVWDNHLQH[FHSWLRQDOWLPHV7KHUXOHLVWKDWHYHU\RIILFLDO

VKRXOGILUVWKDYHDQDXGLHQFHZLWKWKHSULQFHE\ZKRPKHLVDSSRLQWHG+HUH

WKHDSSRLQWPHQWLVPDGHE\WKHPLQLVWHU

background image

1LQHLQWKHWKLUGSODFHPHDQV

,IRQHLVQRWH[WUHPHO\FDUHIXO

6RPHERG\PD\FRPHXSIURPEHKLQGDQGVWULNHKLP

0LVIRUWXQH

$WFHUWDLQWLPHVH[WUDRUGLQDU\FDXWLRQLVDEVROXWHO\QHFHVVDU\%XWLWLVMXVWLQ

VXFKOLIHVLWXDWLRQVWKDWZHILQGXSULJKWDQGVWURQJSHUVRQDOLWLHVZKR

FRQVFLRXVRIEHLQJLQWKHULJKWGLVGDLQWRKROGWKHPVHOYHVRQJXDUGEHFDXVH

WKH\FRQVLGHULWSHWW\,QVWHDGWKH\JRWKHLUZD\SURXGDQGXQFRQFHUQHG

%XW

WKLVVHOIFRQILGHQFHGHOXGHVWKHP7KHUHDUHGDQJHUVOXUNLQJIRUZKLFKWKH\

DUHXQSUHSDUHG<HWVXFKGDQJHULVQRWXQDYRLGDEOHRQHFDQHVFDSHLWLIKH

XQGHUVWDQGVWKDWWKHWLPHGHPDQGVWKDWKHSD\HVSHFLDODWWHQWLRQWRVPDOO

DQGLQVLJQLILFDQWWKLQJ

1LQHLQWKHIRXUWKSODFHPHDQV

1REODPH+HPHHWVKLPZLWKRXWSDVVLQJE\

*RLQJEULQJVGDQJHU2QHPXVWEHRQJXDUG

'RQRWDFW%HFRQVWDQWO\SHUVHYHULQJ

+DUGQHVVRIFKDUDFWHULVWHPSHUHGE\\LHOGLQJSRVLWLRQVRWKDWQRPLVWDNHVDUH

PDGH7KHVLWXDWLRQKHUHFDOOVIRUH[WUHPHFDXWLRQRQHPXVWPDNHQR

DWWHPSWRIRQHVRZQLQLWLDWLYHWRUHDFKWKHGHVLUHGHQG$QGLIRQHZHUHWR

JRRQHQGHDYRULQJRQHPXVWEHRQJXDUGDQGQRWDFWEXWFRQWLQXHLQZDUGO\

WRSHUVHYHUH

ƒ6L[LQWKHILIWKSODFHPHDQV

'HQVHFORXGV

1RUDLQIURPRXUZHVWHUQWHUULWRU\

7KHSULQFHVKRRWVDQGKLWVKLPZKRLVLQWKHFDYH

$VDKLJKSODFHLVSLFWXUHGKHUHWKHLPDJHRIDIO\LQJELUGKDVEHFRPHWKDWRI

IO\LQJFORXGV%XWGHQVHDVWKHFORXGVDUHWKH\UDFHDFURVVWKHVN\DQGJLYH

QRUDLQ6LPLODUO\LQH[FHSWLRQDOWLPHVWKHUHPD\EHDERUQUXOHUZKRLV

TXDOLILHGWRVHWWKHZRUOGLQRUGHUEXWZKRFDQQRWDFKLHYHDQ\WKLQJRUFRQIHU

EOHVVLQJRQWKHSHRSOHEHFDXVHKHVWDQGVDORQHDQGKDVQRKHOSHUV,VVXFK

WLPHVDPDQPXVWVHHNRXWKHOSHUVZLWKZKRVHDLGKHFDQFDUU\RXWWKHWDVN

%XWWKHVHKHOSHUVPXVWEHPRGHVWO\VRXJKWRXWLQWKHUHWLUHPHQWWRZKLFK

WKH\KDYHZLWKGUDZQ,WLVQRWLQWKHIDPHQRUWKHLUJUHDWQDPHVEXWWKHLU

JHQXLQHDFKLHYHPHQWVWKDWDUHLPSRUWDQW7KURXJKVXFKPRGHVW\WKHULJKW

PDQLVIRXQGDQGWKHH[FHSWLRQDOWDVNLVFDUULHGRXWLQVSLWHRIDOOGLIILFXOWLHV

6L[DWWKHWRSPHDQV

+HSDVVHVKLPE\QRWPHHWLQJKLP

7KHIO\LQJELUGOHDYHVKLP

0LVIRUWXQH

7KLVPHDQVEDGOXFNDQGLQMXU\

background image

,IRQHRYHUVKRRWVWKHJRDORQHFDQQRWKLWLW,IDELUGZLOOQRWFRPHWRLWVQHVW

EXWIOLHVKLJKHUDQGKLJKHULWHYHQWXDOO\IDOOVLQWRWKHKXQWHUVQHW+HZKR

LQWLPHVRIH[WUDRUGLQDU\VDOLHQFHRIVPDOOWKLQJVGRHVQRWNQRZKRZWRFDOOD

KDOWEXWUHVWOHVVO\VHHNVWRSUHVVRQDQGRQGUDZVXSRQKLPVHOIPLVIRUWXQH

DWWKHKDQGVRIJRGVDQGPHQEHFDXVHKHGHYLDWHVIURPWKHRUGHURIQDWXUH

LQGH[

&KL&KL$IWHU&RPSOHWLRQ

DERYH.$17+($%<60$/:$7(5

EHORZ/,7+(&/,1*,1*),5(

7KLVKH[DJUDPLVWKHHYROXWLRQRI7DL3($&(7KHWUDQVLWLRQIURP

FRQIXVLRQWRRUGHULVFRPSOHWHGDQGHYHU\WKLQJLVLQLWVSURSHUSODFHHYHQLQ

SDUWLFXODUV7KHVWURQJOLQHVDUHLQWKHVWURQJSODFHVWKHZHDNOLQHVLQWKH

ZHDNSODFHV7KLVLVDYHU\IDYRUDEOHRXWORRN\HWLWJLYHVUHDVRQIRUWKRXJKW

)RULWLVMXVWZKHQSHUIHFWHTXLOLEULXPKDVEHHQUHDFKHGWKDWDQ\PRYHPHQW

PD\FDXVHRUGHUWRUHYHUWWRGLVRUGHU7KHRQHVWURQJOLQHWKDWKDVPRYHGWR

WKHWRSWKXVHIIHFWLQJFRPSOHWHRUGHULQGHWDLOVLVIROORZHGE\WKHRWKHUOLQHV

(DFKPRYLQJDFFRUGLQJWRLWVQDWXUHDQGWKXVVXGGHQO\WKHUHDULVHVDJDLQWKH

KH[DJUDP3L67$1'67,//

+HQFHWKHSUHVHQWKH[DJUDPLQGLFDWHVWKHFRQGLWLRQVRIDWLPHRIFOLPD[

ZKLFKQHFHVVLWDWHWKHXWPRVWFDXWLRQ

7+(-8'*0(17

$)7(5&203/(7,216XFFHVVLQVPDOOPDWWHUV

3HUVHYHUDQFHIXUWKHUV

$WWKHEHJLQQLQJJRRGIRUWXQH

$WWKHHQGGLVRUGHU

7KHWUDQVLWLRQIURPWKHROGWRWKHQHZWLPHLVDOUHDG\DFFRPSOLVKHG,Q

SULQFLSOHHYHU\WKLQJVWDQGVV\VWHPDWL]HGDQGLWVLRQO\LQUHJDUGWRGHWDLOV

WKDWVXFFHVVLVVWLOOWREHDFKLHYHG,QUHVSHFWWRWKLVKRZHYHUZHPXVWEH

FDUHIXOWRPDLQWDLQWKHULJKWDWWLWXGH(YHU\WKLQJSURFHHGVDVLIRILWVRZQ

DFFRUGDQGWKLVFDQDOOWRRHDVLO\WHPSWXVWRUHOD[DQGOHWWKLQJWDNHWKHLU

FRXUVHZLWKRXWWURXEOLQJRYHUGHWDLOV6XFKLQGLIIHUHQFHLVWKHURRWRIDOOHYLO

6\PSWRPVRIGHFD\DUHERXQGWREHWKHUHVXOW+HUHZHKDYHWKHUXOH

LQGLFDWLQJWKHXVXDOFRXUVHRIKLVWRU\%XWWKLVUXOHLVQRWDQLQHVFDSDEOHODZ

+HZKRXQGHUVWDQGVLWLVLQSRVLWLRQWRDYRLGLWVHIIHFWVE\GLQWRIXQUHPLWWLQJ

SHUVHYHUDQFHDQGFDXWLRQ

7+(,0$*(

:DWHURYHUILUHWKHLPDJHRIWKHFRQGLWLRQ

background image

,Q$)7(5&203/(7,21

7KXVWKHVXSHULRUPDQ

7DNHVWKRXJKWRIPLVIRUWXQH

$QGDUPVKLPVHOIDJDLQVWLWLQDGYDQFH

:KHQZDWHULQDNHWWOHKDQJVRYHUILUHWKHWZRHOHPHQWVVWDQGLQUHODWLRQ

DQGWKXVJHQHUDWHHQHUJ\FIWKHSURGXFWLRQRIVWHDP%XWWKHUHVXOWLQJ

WHQVLRQGHPDQGVFDXWLRQ,IWKHZDWHUERLOVRYHUWKHILUHLVH[WLQJXLVKHGDQ

LWVHQHUJ\LVORVW,IWKHKHDWLVWRRJUHDWWKHZDWHUHYDSRUDWHVLQWRWKHDLU

7KHVHHOHPHQWVKHUHEURXJKWLQWRUHODWLRQDQGWKXVJHQHUDWLQJHQHUJ\DUHE\

QDWXUHKRVWLOHWRHDFKRWKHU2QO\WKHPRVWH[WUHPHFDXWLRQFDQSUHYHQW

GDPDJH,QOLIHWRRWKHUHDUHMXQFWXUHVZKHQDOOIRUFHVDUHLQEDODQFHDQG

ZRUNLQKDUPRQ\VRWKDWHYHU\WKLQJVHHPVWREHLQWKHEHVWRIRUGHU,QVXFK

WLPHVRQO\WKHVDJHUHFRJQL]HVWKHPRPHQWVWKDWERGHGDQJHUDQGNQRZVKRZ

WREDQLVKLWE\PHDQVRIWLPHO\SUHFDXWLRQV

7+(/,1(6

1LQHDWWKHEHJLQQLQJPHDQV

+HEUHDNVKLVZKHHOV

+HJHWVKLVWDLOLQWKHZDWHU

1REODPH

,QWLPHVIROORZLQJDJUHDWWUDQVLWLRQHYHU\WKLQJLVSUHVVLQJIRUZDUGVWULYLQJ

LQWKHGLUHFWLRQRIGHYHORSPHQWDQGSURJUHVV%XWWKLVSUHVVLQJIRUZDUGDW

WKHEHJLQQLQJLVQRWJRRGLWRYHUVKRRWVWKHPDUNDQGOHDGVZLWKFHUWDLQW\WR

ORVVDQGFROODSVH7KHUHIRUHDPDQRIVWURQJFKDUDFWHUGRHVQRWDOORZKLPVHOI

WREHLQIHFWHGE\WKHJHQHUDOLQWR[LFDWLRQEXWFKHFNVKLVFRXUVHLQWLPH+H

PD\LQGHHGQRWUHPDLQDOWRJHWKHUXQWRXFKHGE\WKHGLVDVWURXVFRQVHTXHQFHV

RIWKHJHQHUDOSUHVVXUHEXWKHLVKLWRQO\IURPEHKLQGOLNHDIR[WKDWKDYLQJ

FURVVHGWKHZDWHUDWWKHODVWPLQXWHJHWVLWVWDLOZHW+HZLOOQRWVXIIHUDQ\

UHDOKDUPEHFDXVHKLVEHKDYLRUKDVEHHQFRUUHFW

ƒ6L[LQWKHVHFRQGSODFHPHDQV

7KHZRPDQORVHVWKHFXUWDLQRIKHUFDUULDJH

'RQRWUXQDIWHULW

2QWKHVHYHQWKGD\\RXZLOOJHWLW

:KHQDZRPDQGURYHRXWLQKHUFDUULDJHVKHKDGDFXUWDLQWKDWKLGKHU

IURPWKHJODQFHVRIWKHFXULRXV,WZDVUHJDUGHGDVDEUHDFKRISURSULHW\WR

GULYHRQLIWKLVFXUWDLQZDVORVW$SSOLHGWRSXEOLFOLIHWKLVPHDQVWKDWDPDQ

ZKRZDQWVWRDFKLHYHVRPHWKLQJLVQRWUHFHLYLQJWKDWFRQILGHQFHRIWKH

DXWKRULWLHVZKLFKKHQHHGVVRWRVSHDNIRUKLVSHUVRQDOSURWHFWLRQ

(VSHFLDOO\LQWLPHVDIWHUFRPSOHWLRQLWPD\KDSSHQWKDWWKRVHZKRKDYH

FRPHWRSRZHUJURZDUURJDQWDQGFRQFHLWHGDQGQRORQJHUWURXEOH

WKHPVHOYHVDERXWIRVWHULQJQHZWDOHQW

7KLVDVDUXOHUHVXOWVLQRIILFHVHHNLQJ,IDPDQVVXSHULRUVZLWKKROGWKHLU

WUXVWIURPKLPKHZLOOVHHNZD\VDQGPHDQVRIJHWWLQJLWDQGRIGUDZLQJ

background image

DWWHQWLRQWRKLPVHOI:HDUHZDUQHGDJDLQVWVXFKDQXQZRUWK\SURFHGXUH

'RQRWVHHNLW'RQRWWKURZ\RXUVHOIDZD\RQWKHZRUOGEXWZDLW

WUDQTXLOO\DQGGHYHORS\RXUSHUVRQDOZRUWKE\\RXURZQHIIRUWV7LPHV

FKDQJH:KHQWKHVL[VWDJHVRIWKHKH[DJUDPKDYHSDVVHGWKHQHZHUD

GDZQV7KDWZKLFKLVDPDQVRZQFDQQRWEHSHUPDQHQWO\ORVW,WFRPHVWR

KLPRILWVRZQDFFRUG+HQHHGRQO\EHDEOHWRZDLW

1LQHLQWKHWKLUGSODFHPHDQV

7KH,OOXVWULRXV$QFHVWRU

'LVFLSOLQHVWKH'HYLOV&RXQWU\

$IWHUWKUHH\HDUVKHFRQTXHUVLW

,QIHULRUSHRSOHPXVWQRWEHHPSOR\HG

,OOXVWULRXV$QFHVWRULVWKHG\QDVWLFWLWOHRIWKH(PSHURU:X7LQJRIWKH<LQ

G\QDVW\$IWHUSXWWLQJKLVUHDOPLQRUGHUZLWKDVWURQJKDQGKHZDJHGORQJ

FRORQLDOZDUVIRUWKHVXEMHFWLRQRIWKH+XQVZKRRFFXSLHGWKHQRUWKHUQ

ERUGHUODQGZLWKFRQVWDQWWKUHDWRILQFXUVLRQV

7KHVLWXDWLRQGHVFULEHGLVDVIROORZV$IWHUWLPHVRIFRPSOHWLRQZKHQD

QHZSRZHUKDVDULVHQDQGHYHU\WKLQJZLWKLQWKHFRXQWU\KDVEHHQVHWLQ

RUGHUDSHULRGRIFRORQLDOH[SDQVLRQDOPRVWLQHYLWDEO\IROORZV7KHQDVD

UXOHORQJGUDZQRXWVWUXJJOHVPXVWEHUHFNRQHGZLWK)RUWKLVUHDVRQD

FRUUHFWFRORQLDOSROLF\LVHVSHFLDOO\LPSRUWDQW7KHWHUULWRU\ZRQDWVXFKELWWHU

FRVWPXVWQRWEHUHJDUGHGDVDQDOPVKRXVHIRUSHRSOHZKRLQRQHZD\RU

DQRWKHUKDYHKDGHWKHPVHOYHVLPSRVVLEOHDWKRPHEXWZKRDUHWKRXJKWWR

EHTXLWHJRRGHQRXJKIRUWKHFRORQLHV6XFKDSROLF\UXLQVDWWKHRXWVHWDQ\

FKDQFHRIVXFFHVV7KLVKROGVWUXHLQVPDOODVZHOODVODUJHPDWWHUVEHFDXVHLW

LVQRWRQO\ULVLQJVWDWHVWKDWFDUU\RQDFRORQLDOSROLF\WKHXUJHWRH[SDQG

ZLWKLWVDFFRPSDQ\LQJGDQJHUVLVSDUWDQGSDUFHORIHYHU\DPELWLRXV

XQGHUWDNLQJ

6L[LQWKHIRXUWKSODFHPHDQV

7KHILQHVWFORWKHVWXUQWRUDJV

%HFDUHIXODOOGD\ORQJ

,QDWLPHRIIORZHULQJFXOWXUHDQRFFDVLRQDOFRQYXOVLRQLVERXQGWRRFFXU

XQFRYHULQJDKLGGHQHYLOZLWKLQVRFLHW\DQGDWILUVWFDXVLQJDJUHDWVHQVDWLRQ

%XWVLQFHWKHVLWXDWLRQLVIDYRUDEOHRQWKHZKROHVXFKHYLOVFDQHDVLO\EH

JORVVHGRYHUDQGFRQFHDOHGIURPWKHSXEOLF7KHQHYHU\WKLQJLVIRUJRWWHQDQG

SHDFHDSSDUHQWO\UHLJQVFRPSODFHQWO\RQFHPRUH+RZHYHUWRWKHWKRXJKWIXO

PDQVXFKRFFXUUHQFHVDUHJUDYHRPHQVWKDWKHGRHVQRWQHJOHFW7KLVLVWKH

RQO\ZD\RIDYHUWLQJHYLOFRQVHTXHQFHV

1LQHLQWKHILIWKSODFHPHDQV

7KHQHLJKERULQWKHHDVWZKRVODXJKWHUVDQR[

'RHVQRWDWWDLQDVPXFKUHDOKDSSLQHVV

$VWKHQHLJKERULQWKHZHVW

:LWKKLVVPDOORIIHULQJ

background image

5HOLJLRXVDWWLWXGHVDUHOLNHZLVHLQIOXHQFHGE\WKHVSLULWXDODWPRVSKHUH

SUHYDLOLQJLQWLPHVDIWHUFRPSOHWLRQ,QGLYLQHZRUVKLSWKHVLPSOHROGIRUPV

DUHUHSODFHGE\DQHYHUPRUHHODERUDWHULWXDODQGDQHYHUJUHDWHURXWZDUG

GLVSOD\%XWLQQHUVHULRXVQHVVLVODFNLQJLQWKLVVKRZRIPDJQLILFHQFH

KXPDQFDSULFHWDNHVWKHSODFHRIFRQVFLHQWLRXVREHGLHQFHWRWKHGLYLQHZLOO

+RZHYHUZKLOHPDQVHHVZKDWLVEHIRUHKLVH\HV*RGORRNVLQWRWKHKHDUW

7KHUHIRUHDVLPSOHVDFULILFHRIIHUHGZLWKUHDOSLHW\KROGVDJUHDWHUEOHVVLQJ

WKDQDQLPSUHVVLYHVHUYLFHZLWKRXWZDUPWK

6L[DWWKHWRSPHDQV

+HJHWVKLVKHDGLQWKHZDWHU'DQJHU

+HUHLQFRQFOXVLRQDQRWKHUZDUQLQJLVDGGHG$IWHUFURVVLQJDVWUHDPD

PDQVKHDGFDQJHWLQWRWKHZDWHURQO\LIKHLVVRLPSUXGHQWDVWRWXUQEDFN

$VORQJDVKHJRHVIRUZDUGDQGGRHVQRWORRNEDFNKHHVFDSHVWKLVGDQJHU

%XWWKHUHLVDIDVFLQDWLRQLQVWDQGLQJVWLOODQGORRNLQJEDFNRQDSHULO

RYHUFRPH+RZHYHUVXFKYDLQVHOIDGPLUDWLRQEULQJVPLVIRUWXQH,WOHDGV

RQO\WRGDQJHUDQGXQOHVVRQHILQDOO\UHVROYHVWRJRIRUZDUGZLWKRXW

SDXVLQJRQHIDOOVDYLFWLPWRWKLVGDQJHU

LQGH[

:HL&KL%HIRUH&RPSOHWLRQ

DERYH/,7+(&/,1*,1*)/$0(

EHORZ.$17+($%<60$/:$7(5

7KLVKH[DJUDPLQGLFDWHVDWLPHZKHQWKHWUDQVLWLRQIURPGLVRUGHUWRRUGHULV

QRW\HWFRPSOHWHG7KHFKDQJHLVLQGHHGSUHSDUHGIRUVLQFHDOOWKHOLQHVLQ

WKHXSSHUWULJUDPDUHLQUHODWLRQWRWKRVHLQWKHORZHU+RZHYHUWKH\DUHQRW

\HWLQWKHLUSODFHV:KLOHWKHSUHFHGLQJKH[DJUDPRIIHUVDQDQDORJ\WR

DXWXPQZKLFKIRUPVWKHWUDQVLWLRQIURPVXPPHUWRZLQWHUWKLVKH[DJUDP

SUHVHQWVDSDUDOOHOWRVSULQJZKLFKOHDGVRXWRIZLQWHUVVWDJQDWLRQLQWRWKH

IUXLWIXOWLPHRIVXPPHU:LWKWKLVKRSHIXORXWORRNWKH%RRNRI&KDQJHV

FRPHWRLWVFORVH

7+(-8'*0(17

%()25(&203/(7,216XFFHVV

%XWLIWKHOLWWOHIR[DIWHUQHDUO\FRPSOHWLQJWKHFURVVLQJ

*HWVKLVWDLOLQWKHZDWHU

7KHUHLVQRWKLQJWKDWZRXOGIXUWKHU

7KHFRQGLWLRQVDUHGLIILFXOW7KHWDVNLVJUHDWDQGIXOORIUHVSRQVLELOLW\,WLV

QRWKLQJOHVVWKDQWKDWRIOHDGLQJWKHZRUOGRXWRIFRQIXVLRQEDFNWRRUGHU

%XWLWLVDWDVNWKDWSURPLVHVVXFFHVVEHFDXVHWKHUHLVDJRDOWKDWFDQXQLWHWKH

IRUFHVQRZWHQGLQJLQGLIIHUHQWGLUHFWLRQV$WILUVWKRZHYHURQHPXVWPRYH

background image

ZDULO\OLNHDQROGIR[ZDONLQJRYHULFH7KHFDXWLRQRIDIR[ZDONLQJRYHULFH

LVSURYHUELDOLQ&KLQD+LVHDUVDUHFRQVWDQWO\DOHUWWRWKHFUDFNLQJRIWKHLFH

DVKHFDUHIXOO\DQGFLUFXPVSHFWO\VHDUFKHVRXWWKHVDIHVWVSRWV$\RXQJIR[

ZKRDV\HWKDVQRWDFTXLUHGWKLVFDXWLRQJRHVDKHDGEROGO\DQGLWPD\

KDSSHQ

WKDWKHIDOOVLQDQGJHWVKLVWDLOZHWZKHQKHLVDOPRVWDFURVVWKHZDWHU7KHQ

RIFRXUVHKLVHIIRUWKDVEHHQDOOLQYDLQ$FFRUGLQJO\LQWLPHVEHIRUH

FRPSOHWLRQGHOLEHUDWLRQDQGFDXWLRQDUHWKHSUHUHTXLVLWHVRIVXFFHVV

7+(,0$*(

)LUHRYHUZDWHU

7KHLPDJHRIWKHFRQGLWLRQEHIRUHWUDQVLWLRQ

7KXVWKHVXSHULRUPDQLVFDUHIXO

,QWKHGLIIHUHQWLDWLRQRIWKLQJV

6RWKDWHDFKILQGVLWVSODFH

:KHQILUHZKLFKE\QDWXUHIODPHVXSZDUGLVDERYHDQGZDWHUZKLFKIORZV

GRZQZDUGLVEHORZWKHLUHIIHFWVWDNHRSSRVLWHGLUHFWLRQVDQGUHPDLQ

XQUHODWHG,IZHZLVKWRDFKLHYHDQHIIHFWZHPXVWILUVWLQYHVWLJDWHWKH

QDWXUHRIWKHIRUFHVLQTXHVWLRQDQGDVFHUWDLQWKHLUSURSHUSODFH,IZHFDQ

EULQJWKHVHIRUFHVWREHDULQWKHULJKWSODFHWKH\ZLOOKDYHWKHGHVLUHGHIIHFW

DQGFRPSOHWLRQZLOOEHDFKLHYHG%XWLQRUGHUWRKDQGOHH[WHUQDOIRUFHV

SURSHUO\ZHPXVWDERYHDOODUULYHDWWKHFRUUHFWVWDQGSRLQWRXUVHOYHVIRU

RQO\IURPWKLVYDQWDJHFDQZHZRUNFRUUHFWO\

7+(/,1(6

6L[DWWKHEHJLQQLQJPHDQV

+HJHWVKLVWDLOLQWKHZDWHU

+XPLOLDWLQJ

,QWLPHVRIGLVRUGHUWKHUHLVDWHPSWDWLRQWRDGYDQFHRQHVHOIDVUDSLGO\DV

SRVVLEOHLQRUGHUWRDFFRPSOLVKVRPHWKLQJWDQJLEOH%XWWKLVHQWKXVLDVP

OHDGVRQO\WRIDLOXUHDQGKXPLOLDWLRQLIWKHWLPHIRUDFKLHYHPHQWKDVQRW\HW

DUULYHG,QVXFKWLPHLWLVZLVHWRVSDUHRXUVHOYHVWKHRSSUREULXPRIIDLOXUH

E\KROGLQJEDFN

1LQHLQWKHVHFRQGSODFHPHDQV

+HEUDNHVKLVZKHHOV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

+HUHDJDLQWKHWLPHWRDFWKDVQRW\HWFRPH%XWWKHSDWLHQFHQHHGHGLVQRW

WKDWRILGOHZDLWLQJZLWKRXWWKRXJKWRIWKHPRUURZ.HSWXSLQGHILQLWHO\

WKLVZRXOGQRWOHDGWRDQ\VXFFHVV,QVWHDGDQLQGLYLGXDOPXVWGHYHORSLQ

KLPVHOIWKHVWUHQJWKWKDWZLOOHQDEOHKLPWRJRIRUZDUG+HPXVWKDYHD

YHKLFOHDVLWZHUHWRHIIHFWWKHFURVVLQJ%XWKHPXVWIRUWKHWLPHEHLQJXVH

WKHEUDNHV3DWLHQFHLQWKHKLJKHVWVHQVHPHDQVSXWWLQJEUDNHVRQVWUHQJWK

background image

7KHUHIRUHKHPXVWQRWIDOODVOHHSDQGORVHVLJKWRIWKHJRDO,IKHUHPDLQV

VWURQJDQGVWHDGIDVWLQKLVUHVROYHDOOJRHVZHOOLQWKHHQG

6L[LQWKHWKLUGSODFHPHDQV

%HIRUHFRPSOHWLRQDWWDFNEULQJVPLVIRUWXQH

,WIXUWKHUVRQHWRFURVVWKHJUHDWZDWHU

7KHWLPHRIWUDQVLWLRQKDVDUULYHGEXWRQHODFNVWKHVWUHQJWKWRFRPSOHWHWKH

WUDQVLWLRQ,IRQHVKRXOGDWWHPSWWRIRUFHLWGLVDVWHUZRXOGUHVXOWEHFDXVH

FROODSVHZRXOGWKHQEHXQDYRLGDEOH:KDWLVWREHGRQH"$QHZVLWXDWLRQ

PXVWEHFUHDWHGRQHPXVWHQJDJHWKHHQHUJLHVRIDEOHKHOSHUVDQGLQWKLV

IHOORZVKLSWDNHWKHGHFLVLYHVWHSFURVVWKHJUHDWZDWHU7KHQFRPSOHWLRQZLOO

EHFRPHSRVVLEOH

1LQHLQWKHIRXUWKSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

5HPRUVHGLVDSSHDUV

6KRFNWKXVWRGLVFLSOLQHWKH'HYLOV&RXQWU\

)RUWKUHH\HDUVJUHDWUHDOPVDUHUHZDUGHG

1RZLWLVWKHWLPHRIVWUXJJOH7KHWUDQVLWLRQPXVWEHFRPSOHWHG:HPXVW

PDNHRXUVHOYHVVWURQJLQUHVROXWLRQWKLVEULQJVJRRGIRUWXQH$OO

PLVJLYLQJVWKDWPLJKWDULVHLQVXFKJUDYHWLPHVRIVWUXJJOHPXVWEHVLOHQFHG

,WLVDTXHVWLRQRIDILHUFHEDWWOHWREUHDNDQGWRGLVFLSOLQHWKH'HYLOV

&RXQWU\WKHIRUFHVRIGHFDGHQFH%XWWKHVWUXJJOHDOVRKDVLWVUHZDUG1RZLV

WKHWLPHWROD\WKHIRXQGDWLRQVRISRZHUDQGPDVWHU\IRUWKHIXWXUH

ƒ6L[LQWKHILIWKSODFHPHDQV

3HUVHYHUDQFHEULQJVJRRGIRUWXQH

1RUHPRUVH

7KHOLJKWRIWKHVXSHULRUPDQLVWUXH

*RRGIRUWXQH

7KHYLFWRU\KDVEHHQZRQ7KHSRZHURIVWHDGIDVWQHVVKDVQRWEHHQURXWHG

(YHU\WKLQJKDVJRQHZHOO$OOPLVJLYLQJVKDYHEHHQRYHUFRPH6XFFHVVKDV

MXVWLILHGWKHGHHG7KHOLJKWRIDVXSHULRUSHUVRQDOLW\VKLQHVIRUWKDQHZDQG

PDNHVLWVLQIOXHQFHIHOWDPRQJPHQZKRKDYHIDLWKLQLWDQGUDOO\DURXQGLW

7KHQHZWLPHKDVDUULYHGDQGZLWKLWJRRGIRUWXQH$QGMXVWDVWKHVXQ

VKLQHVIRUWKLQUHGRXEOHGEHDXW\DIWHUUDLQRUDVDIRUHVWJURZVPRUHIUHVKO\

JUHHQIURPFKDUUHGUXLQVDIWHUDILUHVRWKHQHZHUDDSSHDUVDOOWKHPRUH

JORULRXVE\FRQWUDVWZLWKWKHPLVHU\RIWKHROG

1LQHDWWKHWRSPHDQV

7KHUHLVGULQNLQJRIZLQH

,QJHQXLQHFRQILGHQFH1REODPH

%XWLIRQHZHWVKLVKHDG

+HORVHVLWLQWUXWK

background image

%HIRUHFRPSOHWLRQDWWKHGDZQLQJRIWKHQHZWLPHIULHQGVIRUHJDWKHULQDQ

DWPRVSKHUHRIPXWXDOWUXVWDQGWKHWLPHRIZDLWLQJLVSDVVHGLQFRQYLYLDOLW\

6LQFHWKHQHZHUDLVKDUGRQWKHWKUHVKROGWKHUHLVQREODPHLQWKLV%XWRQH

PXVWEHFDUHIXOLQDOOWKLVWRNHHSZLWKLQSURSHUERXQGV,ILQKLVH[XEHUDQFH

DPDQJHWVGUXQNKHIRUIHLWVWKHIDYRUDEOHQHVVRIWKHVLWXDWLRQWKURXJKKLV

LQWHPSHUDQFH