7KH6RXO·V&RPHEDFN ,PPRUWDOLW\DQG 5HVXUUHFWLRQLQ(DUO\&KULVWLDQLW\ )UDQoRLV%RYRQ +DUYDUG'LYLQLW\6FKRRO
,Q WKH PLGGOH RI WKH WZHQWLHWK FHQWXU\ ELEOLFDO VFKRODUV FODLPHG WKH XQLW\ RI WKHKXPDQSHUVRQDVWKHFRUHRIELEOLFDODQWKURSRORJ\7KH+HEUHZWHUPvp,n< ´OLIHµ´SHUVRQµZDVQRORQJHUWREHWUDQVODWHGDV´VRXOµDQGWKHEHVW(QJOLVK HTXLYDOHQWIRUWKH*UHHNyuchvZDV´SHUVRQµ,QWKHVHYHQWLHVDQGHLJKWLHVRQERWK VLGHVRIWKH$WODQWLFWKHSHQGXOXPVZXQJHYHQIXUWKHUWRWKHSRLQWRIIDYRULQJ WKHERG\,Q3DULVLQWKHeFROH3UDWLTXHGHV+DXWHVeWXGHV3LHUUH*HROWUDLQ RIIHUHGDOHFWXUHFRXUVHRQWKH´ERG\µLQVHYHUDOWH[WVRIWKH1HZ7HVWDPHQW ZKLOHLQWKH8QLWHG6WDWHV'DOH0DUWLQZRUNHGRQKLVERRNSXEOLVKHGXQGHUWKH WLWOH7KH&RULQWKLDQ%RG\,Q*HQHYDZKHUHH[SUHVVLRQFRUSRUHOOHKDGEHFRPH DIRUPRILQVWUXFWLRQLQGDQFHDQGHXUK\WKPLFSUDFWLFHDWWKH,QVWLWXW-DTXHV 'DOFUR]HVRPH1HZ7HVWDPHQWVFKRODUVLQFRUSRUDWHGERGLO\H[SHULHQFHLQWR WKHLUXQGHUVWDQGLQJRIELEOLFDOSDVVDJHV,WZDVDOVRWKLVWLPHWKDWVDZ³LQWKH ,ZRXOGOLNHWRH[SUHVVP\JUDWLWXGHWR+DUYDUG'LYLQLW\6FKRROIRUWKHLQYLWDWLRQWRGHOLYHUWKH ,QJHUVROO/HFWXUH WR'HDQ:LOOLDP$*UDKDPIRUKLVNLQGLQWURGXFWLRQDQGWRP\FROOHDJXH 3URIHVVRU.DUHQ/.LQJZKRLQKHUSUHVHQWDWLRQH[SUHVVHGPXFKXQGHUVWDQGLQJIRUP\ZRUNDQG IRU PH , ZRXOG OLNH DOVR WR WKDQN +pFWRU *$PD\D DQG (XQ\XQJ /LP ZKR ERWK KHOSHG PH DV UHVHDUFKDVVLVWDQWVRQHLQWKHEHJLQQLQJDQGWKHRWKHUDWWKHHQG,FRQYH\DOVRP\WKDQNVWR/LQGD *UDQWZKRLPSURYHGWKH(QJOLVKRIWKLVOHFWXUHDQGFRQWULEXWHGWRLWVÀQDOHGLWLRQ,H[SUHVVDOVR P\JUDWLWXGHWR3URIV-RQ'/HYHQVRQDQG.HYLQ-0DGLJDQWKHQHZHGLWRUVZKRLQYLWHGPHWR SXEOLVKWKLVOHFWXUHLQ+75WR0DUJDUHW6WXGLHUPDQDJLQJHGLWRURI+75DQGWRWKHVWDIIRI+75 6HH3LHUUH*HROWUDLQ´2ULJLQHVGXFKULVWLDQLVPHµ$QQXDLUHGHO·eFROH3UDWLTXHGHV+DXWHV eWXGHV ² ²DQG ² ² 'DOH%0DUWLQ7KH&RULQWKLDQ%RG\ 1HZ+DYHQ&RQQ
+75 ²
+$59$5'7+(2/2*,&$/5(9,(:
VHFXODUUHDOP³WKHFUHDWLRQRI´ERG\VKRSVµDQGWKHFRQWLQXRXVFDUHRIRQH·V RZQERG\:LWK0HUOHDX3RQW\ZHFDQVD\WKDWWKLVUHFHQWSHULRGZLWQHVVHVD UHGLVFRYHU\RIWKHERG\ ,KRSHP\PDQ\FROOHDJXHVZKRKDYHFODVVHVRUSXEOLFDWLRQVWKDWLQFOXGH WKHZRUG´ERG\µLQWKHLUWLWOHVZLOOIRUJLYHPHWRGD\LI,UHVSRQGRQEHKDOIRI WKHVRXODJDLQVWZKDW,FRQVLGHUWREHDQLQÁDWLRQRIWKHERG\0\UHDFWLRQLV QRWPHDQWWRLPSO\WKDWZHPXVWQHJOHFWWKHVWXG\RIWKHERG\DVWKHORFXVRI VRFLDOSUDFWLFHVDQGWKHH[SUHVVLRQRISRZHUUHODWLRQV,WLVKRZHYHUPHDQWWR LPSO\WKDWDQREVHVVLRQZLWKWKHERG\WKDWLVZLWKZKDWLVYLVLEOHPD\UHÁHFW DQDEVHQFHRIWKHGLYLQH³RIWKHLQYLVLEOH³LQDQRXWUDJHRXVO\VHFXODUVRFLHW\ 0\DSSURDFKLVWRZRUNEDFNZDUGVLQWLPHWKDWLVWRGHDOÀUVWZLWKVHYHUDO FKXUFKZULWHUVRIODWHDQWLTXLW\DQGWKHQLQ3DUW7ZRPRYHWR2ULJHQ7HUWXOOLDQ ,UHQDHXVDQGRWKHU&KULVWLDQDXWKRUVRIWKHWKLUGDQGVHFRQGFHQWXULHV&(,VKDOO WKHQFRQFHQWUDWHLQDWKLUGSDUWRQWKHSURPLVHRIHWHUQDOOLIHLQWKH*RVSHORI-RKQ DQG3DXO·VHSLVWOHVLQFOXGLQJRQHRI-HVXV·VD\LQJV0\ODVWSDUWZLOOVXJJHVWD SDWKIRUVSLULWXDOH[SHULHQFHIRUWRGD\
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·VEORRGFU\LQJRXWWRWKH/RUGIURP WKHJURXQG *HQ 7KHVRXOFDQLQWHUFHGHIRUWKHOLYLQJHYHQDVWKHOLYLQJ LQWKHLUOLWXUJLFDOSUD\HUVFDQDOOHYLDWHWKHVXIIHULQJRIWKHGHDG(XVWUDWLRV·V SRVLWLRQ UHSUHVHQWV D GHIHQVH RI WKH FXOW RI VDLQWV DQG LW PD\ EH FRQVLGHUHG TXLWHGLIIHUHQWIURPWKHDSRVWOH3DXO·VWHUPLQRORJ\RIWKHVOHHSRIWKHGHSDUWHG 6WLOODVODWHDVWKHVL[WKFHQWXU\WKHUHZHUHWKRVHZKRFRQWLQXHGWRWKLQNLQWKH &ROORTXHRUJDQLVpSDUOD)DFXOWpGHWKpRORJLHSURWHVWDQWHGHO·8QLYHUVLWpGHV6FLHQFHVKXPDLQHV GH6WUDVERXUJGXDXPDL eWXGHVHWWUDYDX[ 6WUDVERXUJ $VVRFLDWLRQGHVSXEOLFDWLRQV GHOD)DFXOWpGHWKpRORJLHSURWHVWDQWHHW$VVRFLDWLRQSRXUO·pWXGHGHODFLYLOLVDWLRQURPDLQH ²HVS² 7KH IXOO TXRWDWLRQ LV ´$YDQW GH SRVHU FHWWH TXHVWLRQ YR\RQV ELHQ WRXW FH TXL HVW LPSOLTXp GDQVODUHGpFRXYHUWHGXFRUSVSURSUHµ0DXULFH0HUOHDX3RQW\3KpQRPpQRORJLHGHODSHUFHSWLRQ %LEOLRWKqTXHGHVLGpHV 3DULV *DOOLPDUG (XVWUDWLRV 'H VWDWX DQLPDUXP SRVW PRUWHP &3* HG 3HWHU 9DQ 'HXQ &&6* 7XUQKRXW %UHSROV ,ELG²
)5$1d2,6%2921
DUFKDLF WHUPV RI 3DXO·V HSLVWOHV WKDW WKH GHDG VKRXOG EH FRPSDUHG WR SHRSOH ZKRDUHDVOHHSEHLQJQHLWKHUGHDGQRUUHDOO\DOLYH:HNQRZWKDW&KULVWLDQ DXWKRUVRI6\ULDSUHVHUYHGWKLVDUFKDLFSHUVSHFWLYHRQWKHGHDG,DPSOHDVHG WRPHQWLRQWKDW/RXLV'HPRVDGRFWRURIWKHRORJ\KHUHKDVUHFHQWO\GHIHQGHG DGLVVHUWDWLRQRQWKDWFKXUFKDXWKRU $XJXVWLQH 7XUQLQJWRWKHHQGRIWKHIRXUWKDQGEHJLQQLQJRIWKHÀIWKFHQWXU\&(ZHQRWH WKDWLQ%RRNRIKLV&LW\RI*RG$XJXVWLQHLVFRQFHUQHGZLWKHWHUQDOEHDWLWXGH LQWKHGLYLQHFLW\ ´%XWLQWKDWFLW\DOOWKHFLWL]HQVVKDOOEHLPPRUWDOKXPDQ EHLQJVQRZIRUWKHÀUVWWLPHHQMR\LQJZKDWWKHKRO\DQJHOVKDYHQHYHUORVWµ 7KLVZLOOEHKHHPSKDVL]HVWKHIUXLWRI*RG·VJUDFLRXVZLOODVUHIHUUHGWRLQ ,VD ,VD ² DQG'DQ ²+HWKHQSURSRVHVERWKDUDWLRQDODQG DQDIIHFWLYHDUJXPHQWWRVXSSRUWKLVRZQYLHZRIVXUYLYDORIWKHSHUVRQ+LV UDWLRQDODUJXPHQW LI*RGDWHDFKKXPDQELUWKFDQMRLQDVRXOWRDERG\KHZLOO EHSRZHUIXOHQRXJKDWWKHHQGRIWLPHWRDGGDERG\WRDVRXO+LVDIIHFWLYH DUJXPHQW WKHUHVXUUHFWLRQLWLVWUXHLVGLIÀFXOWWREHOLHYHEXWWKURXJKIDLWK DQG ORYH ZH EHOLHYH WZR HYHQWV KDYH DOUHDG\ RFFXUUHG QDPHO\ &KULVW·V RZQ UHVXUUHFWLRQDQGWKHVXFFHVVRIWKH&KULVWLDQPLVVLRQ-HVXV·UHVXUUHFWLRQLVQRW RQO\DVSLULWXDOHYHQW &KULVWLDQVEHOLHYHDQGNQRZWKDW-HVXVZDVUDLVHGIURP WKHGHDGLQKLVSK\VLFDOSHUVRQ7KHUHVXUUHFWLRQRIWKHGHDGLVWKHFRQVHTXHQFH RI-HVXV&KULVW·VUHVXUUHFWLRQ -HURPH :KLOH$XJXVWLQH·VDUJXPHQWUHSUHVHQWVDV\QWKHVLVRQWKHUHVXUUHFWLRQ-HURPH·V ZLWQHVVHVWRWKHYDULHW\WKHWHQVLRQVDQGWKHFRQWURYHUVLHVRIIRXUFHQWXULHVRI &KULVWLDQLQTXLU\-HURPHDVDELEOLFDOVFKRODULQKLV(SLVWXOD&;,;DG0LQHUXLXP HW$OH[DQGUXPEDVHVKLVGLVFXVVLRQRIWKHUHVXUUHFWLRQRQ&RUSDUWLFXODUO\ 7KHVH RSSRQHQWV DFFRUGLQJ WR (XVWUDWLRV GR QRW GRXEW WKDW VRXOV FDQ PDQLIHVW WKHPVHOYHV IURPWLPHWRWLPHEXWLQVXFKFDVHVWKH\DUHQRWDFWLYHVHOYHVEXWDUHPRYHGE\*RG·VSRZHU 6HH )UDQN *DYLQ ´7KH 6OHHS RI WKH 6RXO LQ WKH (DUO\ 6\ULDF &KXUFKµ -$26 ² 6HH/RXLV'HPRV´7KH&XOWRIWKH6DLQWVDQG,WV&KULVWRORJLFDO)RXQGDWLRQVLQ(XVWUDWLRVRI &RQVDQWLQRSOH·V'HVWDWXDQLPDUXPSRVWPRUWHPµ 7K'GLVV+DUYDUG8QLYHUVLW\ $XJXVWLQH&LW\RI*RG (QJOLVKWUDQVODWLRQVOLJKW\FKDQJHGIURP6DLQW$XJXVWLQH7KH &LW\RI*RG WUDQV0DUFXV'RGV LQWUR7KRPDV0HUWRQ 1HZ
+$59$5'7+(2/2*,&$/5(9,(:
YHUVHZKHUHWKHDSRVWOH3DXOUHYHDOVWKH´P\VWHU\µRIWKHUHVXUUHFWLRQ7KH P\VWHU\LVSDUWLFXODUO\FRPSOH[WRXQGHUVWDQG -HURPHNQRZV IRUWKHWH[WRI )LUVW&RULQWKLDQVLVQRWFHUWDLQDWWKLVSRLQW6RPH*UHHNPDQXVFULSWVUHQGHUWKH YHUVH ´$OORIXVZLOOGLHEXWQRWDOORIXVZLOOEHFKDQJHGµ%XWRWKHUVVWDWH ´$OORIXVZLOOQRWGLHEXWDOORIXVZLOOEHFKDQJHGµ7KLVWH[XDOGLIIHUHQFH UHÁHFWVWKHKHVLWDWLRQRIWKHRORJLDQVDQGVFULEHVRYHUVHYHUDOFHQWXULHV ,Q KLV ORQJ OHWWHU -HURPH SUHVHQWV ÀUVW DQ HORTXHQW VWDWXV TXDHVWLRQLV 'LRGRUXVRI7DUVXVSUREDEO\UHDGLQJWKHÀUVWYDULDQWFODLPVWKDWDVIRUXQLYHUVDO GHDWK LQFRUUXSWLELOLW\ ZLOO IROORZ IRU DOO EXW WUDQVIRUPDWLRQ SUREDEO\ LQWR D JORULRXVERG\ ZLOOEHUHVHUYHGIRUWKHMXVWRUHOHFW'LG\PXVRI$OH[DQGULDDQG $FDFLXVRI&DHVDUHDLQVLVWRQWKHP\VWHU\EXWXOWLPDWHO\WKHLULQWHUSUHWDWLRQLV FORVHWR'LRGRUXV·V 7KHVHFRQGIRUPRIWKHWH[W-HURPHH[SODLQVZDVFKDPSLRQHGE\DPRQJ RWKHUV7KHRGRUXVRI+HUDFOLDDQG$SROOLQDULVRI/DRGLFHDEXWIROORZLQJWZR GLYHUJLQJLQWHUSUHWDWLRQV7KRVHZKR´ZLOOQRWGLHµFDQEHWKRVHZKRDUHVWLOODOLYH RQWKHGD\RIWKHSDURXVLDRU³PRUHLQWHUHVWLQJO\³WKH\PD\EHWKHEHOLHYHUV UHIHUUHGWRLQ-RKQ ²ZKHUHLWLVVWDWHGWKDWWREHOLHYHQRZLVWRFURVV WKHERXQGDU\RIGHDWKDQGJRIURPPRUWDOLW\WRLPPRUWDOLW\ $IWHUWKLVORQJUHYLHZ-HURPHFKRRVHVDVROXWLRQFORVHWR$XJXVWLQH·VSRVLWLRQ FODLPLQJWKDWWKHGHDWKRIWKHERG\LVQRWWKHHQGRIWKHKXPDQSHUVRQ%XWWKH YDULHW\RISDWULVWLFLQWHUSUHWDWLRQVDVZHOODVWKHLQVWDELOLW\RIWKHELEOLFDOWH[W PDNHLWFOHDUWKDWWKHSUREOHPRILPPRUWDOLW\WKHGHVWLQ\RIWKHVRXODQGWKHKRSH IRUDERGLO\UHVXUUHFWLRQZHUHVWLOOEXUQLQJLVVXHVZHOOLQWR&KULVWLDQFHQWXULHV *UHJRU\RI1\VVD /HWXVFRQVLGHUQRZD*UHHNWKHRORJLDQRIIRXUWKFHQWXU\&KULVWLDQLW\*UHJRU\ RI 1\VVD·V 2Q WKH 6RXO DQG WKH 5HVXUUHFWLRQ ZDV ZULWWHQ ZLWKLQ GD\V RI WKH GHDWKRIKLVEURWKHU%DVLOWKH*UHDWDQGDVKLVVLVWHU0DFULQDOD\PRUWDOO\LOO
6HH1HVWOH$ODQG1RYXP7HVWDPHQW*UDHFH WKHG 6WXWWJDUW 'HXWVFKH%LEHOJHVHOOVFKDIW DSSDUDWXVFULWLFXVDGORF -HURPH /HWWUHV HG -pU{PH /DERXUW YROV &ROOHFWLRQ GHV 8QLYHUVWLWpV GH )UDQFH 3DULV %HOOHV/HWWUHV ² 7KRVHZKREHOLHYHKDYHDOLYLQJVRXODQGLPLWDWHWKHGHVWLQ\RIWKHDSRVWOHVZKLOHWKRVHZKR GRQRWEHOLHYHKDYHDVRXOWKDWLVDOUHDG\GHDGHYHQLIWKH\DUHVWLOOSK\VLFDOO\DOLYH-HURPHPHQWLRQV WKDWWKLVLVWKHRSLQLRQRI2ULJHQZKRDFFRUGLQJWR-HURPHXQGHUVWDQGVWKHHWHUQDOOLIHRIEHOLHYHUV DVWKHERGLO\OLIHRIDVFHWLFLVP DERGLO\OLIHKLFHWQXQFDFFRUGLQJQRWWRWKHÁHVKEXWWRWKHVSLULW $WWKHHQGRIKLVOHWWHU-HURPHPHQWLRQVHYHQDWKLUGWH[WXDOYDULDQWRI&RU SUHVHUYHG DFFRUGLQJWRKLPRQO\LQWKH/DWLQYHUVLRQRI)LUVW&RULQWKLDQV ´2PQHVTXLGHPUHVXUJHPXVQRQ RPQHVDXWHPLQPXWDELPXUµ ´$OORIXVZLOOULVH QRWDOOKRZHYHUZLOOEHWUDQVIRUPHGµ 7KHWKLUG HGLWLRQRIWKH9XOJDWHE\WKH'HXWVFKH%LEHOJHVHOOVFKDIW6WXWWJDUW KDV´VHGµ>EXW@EHIRUH´QRQ RPQHVDXWHPLQPXWDELPXUµ $FWXDOO\WKHYDULDQWUHDGLQJLVIRXQGLQWKHFRGH[&ODURPRQWDQXVD ELOLQJXDOPDQXVFULSWLQ*UHHNDQG/DWLQ ' ,WLVWKHUHIRUHDWWHVWHGLQDWOHDVWRQH*UHHNPDQXVFULSW *UHJRU\RI1\VVD'LDORJXVGHDQLPDHWUHVXUUHFWLRQH 3*² VHHLGHP2QWKH6RXO DQGWKH5HVXUUHFWLRQ HG3KLOLS6FKDIIDQG+HQU\:DFH 131) YROV UHSU3HDERG\0DVV
)5$1d2,6%2921
6RPHWLPHV FDOOHG WKH &KULVWLDQ HTXLYDOHQW WR 3ODWR·V 3KDHGR EHFDXVH RI LWV GLDORJLFDOJHQUHDQGWRSLF*UHJRU\GHIHUHQWLDOO\DWWULEXWHVWRKLVVLVWHUWKHUROH RI6RFUDWHVWKHZLVHWHDFKHUDQGPRGHVWO\WDNHVIRUKLPVHOIWKHUROHRISXSLO 3ODWRQLFLQLWVGHIHQVHRIWKHLPPRUWDOLW\RIWKHVRXODQGLWVVSLULWXDOQDWXUH WKH ZRUN LV$ULVWRWHOLDQ LQ DVVHUWLQJ WKH VLPXOWDQHRXV ELUWK RI ERWK WKH VRXO DQGWKHERG\DQGLQGHQ\LQJDQ\PLJUDWLRQRIWKHVRXO:KDWLQWHUHVWVPHKHUH LV*UHJRU\·VÀUVWFRQFHUQ WKHVHDUFKIRUDGHÀQLWLRQRIWKHVRXOHVWDEOLVKLQJ DSDUDOOHOEHWZHHQWKHLQYLVLEOH*RGDQGWKHVSLULWXDOVRXO*UHJRU\·VVHFRQG FRQFHUQLVWRKDUPRQL]HWKHGLVVROXWLRQRIWKHERG\DIWHUGHDWKZLWKEHOLHILQWKH UHVXUUHFWLRQRIWKHÁHVK7KXVVLQVVXFKDVDQJHUDQGGHVLUHHYHQLIFRQQHFWHG WRWKHVRXODUHQRWSDUWRIWKHKXPDQSHUVRQ 1RUGRHV*UHJRU\VHHWKHFRQWLQXLW\RIWKHSHUVRQDIWHUGHDWKLQWKHSK\VLFDO SUHVHQFHRIUHOLFVRULQWKHDOPLJKW\FDUHRI*RGEXWLQWKHPHPRU\WKDWWKH VRXOSUHVHUYHVRIDOOWKHGHWDLOVRIKHUEURWKHUWKHERG\7KHSDUDEOHRIWKH5LFK 0DQDQG3RRU/D]DUXV /XNH ² GRHVQRWFRQIURQWUHVXUUHFWHGERGLHVLQ +HOODQG3DUDGLVHEXWVRXOVZKRUHPHPEHUWKHLUERGLO\FRXQWHUSDUWV*UHJRU\ FRQVLGHUVOLIHDIWHUGHDWK³VWUDQJHO\PRUHSUHVXSSRVHGWKDQGHVFULEHG³QRWDV DVWDWLFSHULRGRIUHZDUGDQGSXQLVKPHQWEXWXQGHUWKHLQÁXHQFHRI2ULJHQ DVDORQJSURFHVVRIWUDLQLQJDQGHGXFDWLRQLQDVRUWRIPRUDOUHKDELOLWDWLRQ7KLV RSWLPLVWLFSHUVSHFWLYHFRQÀUPV*UHJRU\·VPDLQJRDO WRÀQGFRQVRODWLRQLQWKH IDFHRIGHDWK³QRWDQHDV\FRQVRODWLRQVXFKDVWKHELOOLJH*QDGH ´FKHDSJUDFHµ FKDVWLVHGE\'LHWULFK%RQKRHIIHUEXWDUHDOFRQVRODWLRQ
Q7KLUGDQG6HFRQG&HQWXULHV 2ULJHQ 7XUQLQJWRWKHWKLUGFHQWXU\&(LQWKH'HSULQFLSLLVRI2ULJHQZHÀQGWKHVNLOO RIDELEOLFDOVFKRODUDQGWKHVRSKLVWLFDWLRQRIDWKHRORJLDQ(YHQWKRXJKKHZLOO EHFRQGHPQHGE\VRPHDVHDUO\DVWKHIRXUWKFHQWXU\IRUKLVHVFKDWRORJ\DQG VSLULWXDOL]DWLRQKLVLQWHUSUHWDWLRQRILPPRUWDOLW\DQGUHVXUUHFWLRQZLOOEHFRPH KLJKO\LQÁXHQWLDO$OOVSLULWXDOOLIHVHHNVWREHFRPHVLPLODUWR*RG,I*RGKDV FUHDWHGKXPDQEHLQJVLQKLVLPDJH LPDJR DWWKHFUHDWLRQWKHQDWWKHUHVXUUHFWLRQ WKHVDYHGZLOOEHUHHVWDEOLVKHGLQDVWDWXVHYHQFORVHUWR*RG VLPLOLWXGR :KLOH +HQGULFNVRQ ² LGHP2QWKH6RXODQGWKH5HVXUUHFWLRQ WUDQVDQGLQWUR&DWKDULQH3 5RWK &UHVWZRRG1< 6W9ODGLPLU·V6HPLQDU\3UHVV LGHP/·kPHHWODUpVXUUHFWLRQ WUDQV &KULVWLDQ%RXFKHW LQWUR%HUQDUG3RWWLHU QRWHV0DULH+pOqQH&RQJRXUGHDX 3DULV 0LJQH 6HH :DOWKHU 9|ONHU 'DV 9ROONRPPHQKHLWVLGHDO GHV 2ULJHQHV (LQH 8QWHUVXFKXQJ ]XU *HVFKLFKWH GHU )U|PPLJNHLW XQG ]X GHQ $QIlQJHQ FKULVWOLFKHU 0\VWLN %+7 7ELQJHQ 0RKU 6LHEHFN ²² 2ULJHQ3ULQF %HKLQG WKH /DWLQ WUDQVODWLRQ LPDJR WKHUH PXVW EH WKH *UHHN eijkwvn DQG EHKLQG VLPLOLWXGR oJmoivwsi~,UHQDHXVKDGDOUHDG\PDGHXVHRIWKLVGLVWLQFWLRQEDVHGRQDQH[HJHVLVRI*HQHVLV VHH,UHQDHXVRI/\RQ+DHU² &OHPHQWRI$OH[DQGULD6WURP DQGDOVRXVHGWKHGLVWLQFWLRQLQDZD\WKDWLVVLPLODUWR,UHQDHXV
+$59$5'7+(2/2*,&$/5(9,(:
WKHÀQDOWUDQVIRUPDWLRQZLOOEHWKHPDWWHURIDQLQVWDQWLQ-HURPH·VWKLQNLQJLW LVDORQJSURFHVVDSURFHVVRIVSLULWXDOHGXFDWLRQLQWKHPLQGRI2ULJHQ ,Q DQRWKHU SDVVDJH RI 'H SULQFLSLLV 2ULJHQ PHGLWDWHV RQ SXQLVKPHQW DQG UHZDUG,QKLVHIIRUWWRH[SODLQZKRZLOOIDFHWKHÀQDOMXGJPHQWKHHDJHUO\ UHDFWVDJDLQVWZKDWKHFDOOVWKHKHUHWLFVZKROLPLWVXUYLYDOWRWKHVRXOLQVLVWLQJ WKDWLWZLOOEHRXUVRXOVDQGRXUERGLHVERWKWKDWZLOOLQKHULWHWHUQDOOLIH7KLV FRQWLQXLW\LVLPSRUWDQWWR2ULJHQ LWZLOOEHLQRXURZQERGLHVWKDWWKHUHVXUUHFWLRQ ZLOOWDNHSODFH2QWKHRWKHUKDQGKHFULWLFL]HVWKHVLPSOHEHOLHYHUVZKRH[SHFW RQO\DUHYLYDORIWKHLUSUHVHQWÁHVKO\ERG\2XUULVHQERGLHVZLOOEHKHLQVLVWV VSLULWXDOLQQDWXUHIRUDVWKHDSRVWOH3DXOVD\V´ÁHVKDQGEORRGFDQQRWLQKHULW WKH NLQJGRP RI *RGµ &RU :H ZLOO LQKDELW RXU VSLULWXDO ERG\ DQG DEDQGRQRXUDQLPDOERG\$V&DUROLQH%\QXPKDVRSSRVHGWKHWZRPHWDSKRUV RQH³GDQJHURXV³LVWKHUHFRQVWUXFWLRQRIWKHERG\DVDKRXVHDQGWKHRWKHU³ PRUHXVHIXO³LVWKHWUDQVIRUPDWLRQRIWKHVHHGLQWRDSODQW2ULJHQOLNH3DXO SUHIHUVWKHPHWDSKRURIWKHVHHG7KHJORULÀHGERG\ZLOOEHERWKFRQWLQXRXV DQGGLVFRQWLQXRXVZLWKWKHQDWXUDOERG\,WZLOOEHVLPLODUDQGGLIIHUHQWMXVW DVDSODQWLVFRQWLQXRXVZLWKWKHVHHGHYHQWKRXJKLWORRNVTXLWHGLIIHUHQW7KH FKDQJHZLOOEHWKHZRUNRIWKHJUDFHRI*RGEXWWKURXJKWKHVSLULWXDOH[HUFLVH RIWKHLUVRXOVRYHUWKHLUERGLHVEHOLHYHUVFRRSHUDWHLQWKLVGLYLQHHIIRUW 7HUWXOOLDQ 7HUWXOOLDQ ZURWH KLV 'H DQLPD LQ RU HDUO\ LQ 7KH GLIÀ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·V&KULVWLDQRSSRQHQWVZLWQHVVHVWRWKHPHOWLQJSRW RI&KULVWLDQYLHZVLQWKHVHFRQGFHQWXU\+HLVVKRFNHGE\6DWXUQLQXV·VYLHZ WKDWDWGHDWKWKHVRXOZLOOVLPSO\Á\KRPHGLUHFWO\WRKHDYHQ +HGLVOLNHV SDUWLFXODUO\PHWHPSV\FKRVLVDQGPHWHQVRPDWRVLVWZR*UHHNWHUPVKHXVHVIRU
2ULJHQ3ULQF &DURO\Q :DONHU %\QXP 7KH 5HVXUUHFWLRQ RI WKH %RG\ LQ :HVWHUQ &KULVWLDQLW\ ² /HFWXUHVRQWKH+LVWRU\RI5HOLJLRQ 1HZ
)5$1d2,6%2921
UHLQFDUQDWLRQ WKXV UHIXWLQJ &DUSRFUDWHV DQG EHIRUH KLP 6LPRQ 0DJXV +H FDQQRWDJUHHZLWK$SHOOHV0DUFLRQ·VGLVFLSOHZKRVHSDUDWHVPDOHDQGIHPDOH VRXOV +H GLVDJUHHV ÀQDOO\ ZLWK 0HQDQGHU ZKR KDG SUHVHUYHG DQ DUFKDLF IRUPXODWLRQRIWKH*RVSHOVDQGEHOLHYHGWKDWWKHDIWHUOLIHFDQEHFDOOHGDOLIH DQGQRWGHDWK(QGRZHGZLWKDJRRGGRVHRIPDXYDLVHIRL7HUWXOOLDQULGLFXOHV 0HQDQGHUVD\LQJWKDWKHZDVUHIXVLQJWRGLH $JDLQVW DOO WKHVH DGYHUVDULHV 7HUWXOOLDQ EXLOGV DQ LQWHOOHFWXDO GHIHQVH KH WUXVWVWKH&KULVWLDQUHOLJLRXVWUDGLWLRQDQGQRWSKLORVRSKLFDOZLVGRP+HEHOLHYHV IURP6FULSWXUHWKDWWKHVRXOLVFUHDWHGE\WKH6SLULWRI*RG 7KHVRXOKDVD EHJLQQLQJ DQGKHUELUWKGD\FRLQFLGHVZLWKWKHERG\·VELUWKGD\7KHSDUDEOH RIWKH5LFK0DQDQG3RRU/D]DUXV /XNH ² SURYHVWKDWWKHVRXODIWHU GHDWKLVERGLO\ DQGSRVVHVVHVDFHUWDLQIRUP DQHIÀJLHVDQLPDH 'HDWKFRQVWLWXWHVWKHVHSDUDWLRQRIERG\DQGVRXOWKHWHPSRUDU\VXVSHQVLRQRI ZKDW7HUWXOOLDQFDOOVVRFLHWDWHPFDUQLVDWTXHDQLPDH ´FRPSDQ\RIERG\DQG VRXOµ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ÀUVWUHZDUGV $V ZH KDYH VHHQ *UHJRU\ RI 1\VVD RIIHUV D GLIIHUHQW LQWHUSUHWDWLRQ 6HH DERYH )RU 7HUWXOOLDQ'HDQLPD²WKHVRXOLVRQHDQGVLPSOH+HUVWUHQJWKDQGSRZHULVWKHDQLPXVWKH HTXLYDOHQWRIWKHPLQG PHQVnou``~ +HU´OHDGLQJSDUWµWKHhJgemonikovn D6WRLFIRUPXODWLRQ LV WKHHTXLYDOHQWRIZKDW6FULSWXUHFDOOV´KHDUWµ LELGDQG -DFTXHV /H *RII GLVWLQJXLVKHV EHWZHHQ WKH IRUPDWLRQ RI WKH EHOLHI LQ SXUJDWRU\ DOUHDG\ LQ DQWLTXLW\DQGWKHELUWKRISXUJDWRU\LWVHOILQWKH0LGGOH$JHV ´-HPHSURSRVHGHVXLYUHODIRUPDWLRQ VpFXODLUHGHFHWURLVLqPHOLHXGHSXLVOHMXGpRFKULVWLDQLVPHDQWLTXHG·HQPRQWUHUODQDLVVDQFHDX PRPHQWGHO·pSDQRXLVVHPHQWGHO·2FFLGHQWPpGLpYDOGDQVODVHFRQGHPRLWLpGX;,,HVLqFOHHWOH UDSLGH VXFFqV DX FRXUV GX VLqFOH VXLYDQWµ ´, SURSRVH WR WUDFH WKH VHFXODU IRUPDWLRQ RI WKLV WKLUG SODFHVLQFHWKH-HZLVK&KULVWLDQLW\RIDQWLTXLW\LQRUGHUWRGHPRQVWUDWHLWVELUWKDWWKHWLPHRIWKH EORVVRPLQJRIWKHPHGLHYDO:HVWLQWKHVHFRQGKDOIRIWKHWZHOIWKFHQWXU\&(DQGLWVUDSLGVXFFHVV LQ WKH FRXUVH RI WKH QH[W FHQWXU\µ /D QDLVVDQFH GX 3XUJDWRLUH &ROOHFWLRQ )ROLR +LVWRLUH 3DULV *DOOLPDUG 7KHVXFFHVVRIWKH&KULVWLDQPHVVDJHRIHVFKDWRORJLFDOKRSHWKURXJKWKHH[SUHVVLRQRILPPRUWDO OLIHZDVZLGHVSUHDGLQWKHWKLUGFHQWXU\DVLQWKHFHQWXULHVWKDWIROORZHG,Q$FWV3KLOHYHQ DQLPDOVFRQYHUWDQGH[SUHVVWKHLUJUDWLWXGHLQWKHIROORZLQJSUD\HU ´:HJORULI\\RX/RUGWKHRQO\ EHJRWWHQ 6RQ RQ DFFRXQW RI WKH XQG\LQJ OLIH LQWR ZKLFK ZH KDYH EHHQ ERUQ KDYLQJ UHFHLYHG LQ SODFHRIDQDQLPDOERG\DKXPDQRQHµ,QWKH+LVWRU\RI-RVHSKWKH&DUSHQWHUSUHVHUYHGLQ &RSWLFGHDWKLVXQGHUVWRRGDVDQH[RGXVRXWRIWKHERG\$QGFRQVLGHULQJWKLVGHDWK-HVXVZKR LVSUHVXPHGWRVSHDNREVHUYHV ´-RVHSK@GLHGEXWWKLVGHDWKRIP\IDWKHU-RVHSKLVQRW DGHDWKWKLVLVHWHUQDOOLIHµ(YHU\RQHPXVWGLHHYHQWKHPRVWKRO\RQHVVXFKDV-RVHSK(QRFK DQG (OLMDK HYHQ LI WDNHQ DOLYH WR KHDYHQ (QRFK DQG (OLMDK ZLOO KDYH DOVR WR GLH EHIRUH WKH ÀQDO
+$59$5'7+(2/2*,&$/5(9,(:
,UHQDHXV %HVLGHVSUHVHQWLQJKLVRZQSRVLWLRQ,UHQDHXVPHQWLRQVWKHSRVLWLRQRIKLVDGYHU VDULHV ,QWKLVZD\KHEHDUVZLWQHVVWRWKHH[LVWHQFHRIDVSLULWXDOLQWHUSUHWDWLRQ WKDWZHÀQGLQVHYHUDODXWKRUVRIWKHVHFRQGFHQWXU\7KHUHDUH´KHUHWLFVµ IURP ,UHQDHXV·VSRLQWRIYLHZ ZKRQHJOHFWWKHÁHVKDQGFODLPWKDWUHOHDVHGIURPWKH EXUGHQRIWKHERG\WKHHOHFWDWWKHLUGHDWKREWDLQGLUHFWDFFHVVWR*RG,UHQDHXV DGGVKHUHDQLQWHUHVWLQJFRPPHQW DOOKLVDGYHUVDULHVKHVD\VUHO\RQ3DXO·V VWDWHPHQWLQ&RUWKDW´ÁHVKDQGEORRGFDQQRWLQKHULWWKHNLQJGRPRI*RGµ Y WRVXSSRUWWKHLUSRVLWLRQ%XWLQERRNRI$GYHUVXVKDHUHVHVZKHUH ,UHQDHXVGHIHQGVKLVRZQSRVLWLRQZHÀQGWKDWKHXVHVWKHYHU\VDPHDXWKRULW\ DQGVRXUFH&RUWRVXSSRUWWKHRSSRVLWHGRFWULQDOSRVLWLRQ SDUWLFXODUO\Y 7KHEDWWOHIRULQWHUSUHWDWLRQVDWRSLFGHDUWR3DXO5LF±XULVZHOOHQJDJHG LQWKHVHFRQGFHQWXU\ %XWZHPXVWEHIDLUWR,UHQDHXV WKHELVKRSRI/\RQLVQRWMXVWWKHFKDPSLRQRI WKHUHVXUUHFWLRQRIWKHÁHVK+HTXDOLÀHVKLVSRVLWLRQZLWKWKHIROORZLQJFRQWUDVW MXVWDV$GDPZDVPDUNHGE\QDWXUDOEUHDWKLQJ pnohv &KULVWZDVFRQQHFWHG ZLWKWKHGLYLQH6SLULW pneu`ma 6LPLODUO\DIWHUWKHLUQDWXUDOOLIHKXPDQEHLQJV ZLOOULVHIURPWKHGHDGLQDERG\EXWLWZLOOEHDWUDQVIRUPHGVSLULWXDOERG\ 2WKHU6HFRQG&HQWXU\&KULVWLDQ$XWKRUV 7KHVHFRQGFHQWXU\ZDVIRU&KULVWLDQVDSHULRGRIXQFHUWDLQW\DQGFRQÁLFWHG RSLQLRQV&RPSDUHGWRZULWHUVRIWKH6HFRQG6RSKLVWLF&KULVWLDQVDSSHDUQDwYH DQGDPDWHXULVKLQWKHLUZULWLQJV&RPSDUHGWRWKH6WRLFVDQGRWKHUSKLORVRSKHUV &KULVWLDQV SUHVHQW LQFRQVLVWHQW DQWKURSRORJLFDO YLHZV 7KHLU XVDJH RI WHUPV VXFKDV´VRXOµ´PLQGµDQG´VSLULWµLVRIWHQORRVH$ERYHDOOWKHUHLVKHVLWDWLRQ FRQFHUQLQJWKHDIWHUOLIH6RPHXQGHUVFRUHWKHLQYROYHPHQWRIWKHÁHVKLQWKH UHVXUUHFWLRQSURFHVVZKLOHRWKHUVDUHVDWLVÀHGZLWKWKHVSLULWXDODVSHFWRIWKH UHVXUUHFWLRQ 7KLV GLYHUVLW\ RI RSLQLRQ UHÁHFWV WKH DPELJXLWLHV RI WKH HDUO\ &KULVWLDQ GRFXPHQWV WKDW ZLOO EHFRPH WKH VWRFN RI DXWKRULWDWLYH ZULWLQJV SDUWLFXODUO\&RUDQGWKHODFNRILQWHOOHFWXDOWUDLQLQJDPRQJPDQ\&KULVWLDQV %XWHYHQPRUHLWUHÁHFWVWKHHDUO\&KULVWLDQSUHRFFXSDWLRQZLWKWKHPHVVDJHRI UHVXUUHFWLRQ ,QWKH$UPHQLDQ0DUW\UGRPRI7KDGGHXVWKHDSRVWOHZKRLVSUDLVHGIRUKDYLQJ FRQYHUWHG 6DQGRXNKW WKH NLQJ·V GDXJKWHU LV FRQVLGHUHG WR EH ´D ZD\ RI OLIH DQG D PHGLFLQH RI LPPRUWDOLW\µ7KDWPHDQVWKDWKHLVDEOHWREULQJKLVFRQYHUWVRQWKHZD\WRHWHUQDOOLIH%RRNHLJKW RIWKH6LE\OOLQH2UDFOHV ² SUHVHQWV&KULVW·VSDVVLRQLQDSRHWLFZD\ WKURXJKKLVDJRQ\WKH 6RQKDVSXWGHDWKWRGHDWKDQGKDVEHFRPHDVRXUFHRILPPRUWDOLW\6HHeFULWVDSRFU\SKHVFKUpWLHQV HG)UDQoRLV%RYRQ3LHUUH*HROWUDLQDQG-HDQ'DQLHO.DHVWOL YROV /D3OpLDGHDQG 3DULV *DOOLPDUG ² DQG ,UHQDHXV +DHU ² ,UHQDHXV &RQWUH OHV KpUpVLHV /LYUH 9 HG$GHOLQ 5RXVVHDX /RXLV 'RXWUHOHDXDQG&KDUOHV0HUFLHU 6&² 3DULV &HUI 3DXO5LF±XU/HFRQÁLWGHVLQWHUSUpWDWLRQV(VVDLVG·KHUPpQHXWLTXH /·RUGUHSKLORVRSKLTXH 3DULV 6HXLO ,UHQDHXV+DHU²
)5$1d2,6%2921
VDOYDWLRQ ZKDWUHDOO\PDWWHUHGIRUWKH&KULVWLDQVRIWKDWWLPHLVQRWDGHÀQLWLRQ RIWKHVRXORUDSKLORVRSKLFDOGLVWLQFWLRQRIWKHSDUWVRIWKHVHOIEXWWKHKRSHRI DQDIWHUOLIHDQGDUHODWLRQVKLSRIKRSHDQGORYHZLWKWKHGHLW\7KHFOHDUHUWKH SURPLVHRIHWHUQDOOLIHWKHPRUHYDJXHWKHGHÀQLWLRQRIWKHVHOI 6XFK LV WKH HYLGHQFH LQ HDUO\ &KULVWLDQ SRHWU\ SDUWLFXODUO\ WKH 2GHV RI 6RORPRQ ZKHUH DQWKURSRORJ\ DSSHDUV VLPSO\ LQ WKH IRUP RI WKH ÀUVW SHUVRQ SURQRXQ´,µDQGVRWHULRORJ\VKLQHVLQDZLGHYDULHW\RISRHWLFH[SUHVVLRQV 7KH 6RQKDVORYHGPHDQG,ORYHKLP,VKDOOEHFRPH´VRQµRU´GDXJKWHUµP\VHOI ´)RUKHZKRLVMRLQHGWRKLPZKRGRHVQRWGLHZLOODOVREHLPPRUWDOµ 2GHV 6RO 6XFKLVWKHWHDFKLQJRIWKH6SLULWRIWKH/RUG 2GHV6RO 7KH /RUGRSHQHGP\KHDUWWRKLVOLJKWDQG´FDXVHGKLVLPPRUWDOOLIHWRGZHOOLQPHµ 2GHV6RO ´,GUDQN³DQGEHFDPHGUXQN³LPPRUWDOZDWHUµ 2GHV6RO >*UHHN@ ´,SXWRQLPSHULVKDELOLW\E\KLVQDPHDQGWRRNRIISHULVKDELOLW\ E\KLVJUDFH'HDWKZDVDQQLKLODWHGEHIRUHP\IDFHDQGWKHUHDOPRIWKHGHDG >6KHRO@GHVWUR\HGE\P\ZRUGµ 2GHV6RO² 7KHDSRORJLVWV$WKHQDJRUDV3VHXGR-XVWLQDQGWKHDXWKRURIWKHVRFDOOHG 7KLUG (SLVWOH WR WKH &RULQWKLDQV GHIHQG D GRFWULQH RI WKH UHVXUUHFWLRQ RI WKH ÁHVKEXWIRUWKHPWKHVRXOUHPDLQVLPSRUWDQW7KHÁHVKKHOSVEULGJHWKHJXOI EHWZHHQGHDWKDQGWKHUHVXUUHFWLRQEXWWKHVRXOLVHYHQEHWWHUWKDQDEULGJH 0LFKDHO /DWWNH 2GHV RI 6RORPRQ $ &RPPHQWDU\ WUDQV 0DULDQQH (KUKDUGW +HUPHQHLD 0LQQHDSROLV0LQQ )RUWUHVV ,ELG ,ELG ,ELG ,ELG 6HH$WKHQDJRUDV6XSSOLTXHDXVXMHWGHVFKUpWLHQVHW6XUODUpVXUUHFWLRQGHVPRUWV HG%HUQDUG 3RXGHURQ 6& 3DULV &HUI LGHP(PEDVV\IRUWKH&KULVWLDQV 7KH5HVXUUHFWLRQRIWKH 'HDG WUDQVDQGDQQRWDWHGE\-RVHSK+XJK&UHKDQ $&: :HVWPLQVWHU0G 1HZPDQ 3VHXGR-XVWLQ6XOODUHVXUUH]LRQH'LVFRUVRFULVWLDQRGHO,,VHFROR HG$OEHUWR'·$QQD /HWWHUDWXUD &ULVWLDQD$QWLFD %UHVFLD 0RUFHOOLDQD LGHPhEHUGLH$XIHUVWHKXQJ7H[WXQG6WXGLH HG 0DUWLQ +HLPJDUWQHU %HUOLQ GH *UX\WHU 7HU]D /HWWHUD DL &RULQ]L 3VHXGR*LXVWLQR /D 5LVXUUH]LRQH HG$OEHUWR'·$QQD /HWWXUH&ULVWLDQHGHO3ULPR0LOHQQLR 0LODQ 3DROLQH 9DKDQ+RYKDQHVVLDQ7KLUG&RULQWKLDQV 5HFODLPLQJ3DXOIRU&KULVWLDQ2UWKRGR[\ 1HZ
+$59$5'7+(2/2*,&$/5(9,(:
7KLVEHFRPHVHYLGHQWZKHQUHDGLQJWKHQHZO\GLVFRYHUHG3UD\HUDQG$SRFDO\SVH RI3DXOZKLFK,ZDVIRUWXQDWHWRHGLWZLWK%HUWUDQG%RXYLHUIRUWKHÀUVWWLPH 7KLVDSRFDO\SVHGHSLFWVWKHRSSRVLWHGHVWLQLHVRIWKHVLQQHUDQGWKHHOHFWDWWKH PRPHQWRIGHDWKDQGGXULQJWKHORQJVWD\LQWKHUHDOPRIGHDWKZKLOHDZDLWLQJ WKH À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³RIWHQ FRQWUDGLFWRU\³RSLQLRQV DUH RIIHUHG$ YHU\ FRPPRQ UHVSRQVH ZDV WR SUDLVH WKHIXWXUHIDWHRIWKHVRXODVDQHVFDSHIURPWKHERG\ZKLFKZDVFRQVLGHUHGD SULVRQ KHUHRIFRXUVHWKHLQÁXHQFHRIWKH3ODWRQLFWUDGLWLRQLVWDQJLEOH (YHQ LI FDUHIXO GLVWLQFWLRQV PXVW EH PDGH WKLV LV WKH VROXWLRQ RI VHYHUDO VRFDOOHG JQRVWLFWH[WVSDUWLFXODUO\7KH([HJHVLVRIWKH6RXO 1+&,, DQGWKH/HWWHU WR5KHJLQXVRU7UHDWLVHRQWKH5HVXUUHFWLRQ 1+&, 7REHVXUHZHDOVRÀQG DQWKURSRORJLFDOUHÁHFWLRQVLQWH[WVVXFKDVWKH*RVSHORI0DU\,QWKLVGRFXPHQW WKHDXWKRUFRQQHFWVPDWWHUZLWKWKHSDVVLRQVDQGWKHYLVLRQRIWKH/RUGZLWKWKH PLQGZKLFKLVDSDUWRIWKHVHOIGLVWLQFWIURPWKHVRXODQGWKHKXPDQVSLULW%XW KHUHDOVRVRWHULRORJ\LVWKHFRUHRIWKHUHÁHFWLRQDQGDPRQJWKHWZRPHQWLRQHG WHQGHQFLHV³VSLULWXDODQGFRUSRUDOVDOYDWLRQ³LWFOHDUO\FKRRVHVWKHVSLULWXDO &KDSWHU RIWKH*RVSHORI0DU\GHVFULEHVWKHDVFHQWRIWKHVRXO GDWHRI(]UDVHFRQGKDOIRIWKHVHFRQGFHQWXU\RUEHJLQQLQJRIWKHWKLUGFHQWXU\&( 6HH %HUWUDQG %RXYLHU DQG )UDQoRLV %RYRQ ´3ULqUH HW $SRFDO\SVH GH 3DXO 8Q IUDJPHQW JUHFLQpGLWFRQVHUYpDX6LQDw,QWURGXFWLRQWH[WHWUDGXFWLRQHWQRWHVµ$SRFU\SKD ² (YHQLIWKHWH[WLVODWHUWKDQWKHVHFRQGFHQWXU\LWGHIHQGVWKHVDPHSRVLWLRQDVWKH$SRFDS\SVHRI 3HWHUDQGWKH$SRFDO\SVHRI3DXO2QWKHVHWZRHDUO\&KULVWLDQDSRFDO\SVHVVHHEHORZQ6HH /RXLVH'XGOH\7KH(J\SWLDQ(OHPHQWVLQWKH/HJHQGRIWKH%RG\DQGWKH6RXO %DOWLPRUH0G )XUVW HDGHP´$Q(DUO\+RPLO\RQWKH¶%RG\DQG6RXO·7KHPHµ-RXUQDORI(QJOLVKDQG *HUPDQ3KLORORJ\ ² ,KHVLWDWHWRPHQWLRQKHUHWKH*RVSHORI7UXWK6HH*RVSHORI7UXWK² ²DQG ² +DUROG$WWULGJH DQG *HRUJH: 0DF5DH ´7KH *RVSHO RI7UXWK , DQG ;,, µ LQ 7KH 1DJ+DPPDGL/LEUDU\LQ(QJOLVK HG-DPHV05RELQVRQ GHG 1HZ
)5$1d2,6%2921
$VHFRQGVROXWLRQXQGHUVFRUHVWKHXQLW\RIWKHSHUVRQLQWKHNQRZOHGJHRI GLIIHUHQWIDWHVUHVHUYHGIRUKLVRUKHUSDUWV$OWKRXJKWKHG\LQJERG\LVGLVWLQFW IURPWKHOLYLQJVRXOWKHGHVWLQ\RIWKHVRXOLQWKHDIWHUOLIHGHSHQGVRQWKHHWKLFDO FRPPLWPHQWRIWKHERG\LQWKLVOLIHDQGDUHXQLRQRIERWKVRXODQGERG\LV H[SHFWHGRQWKHGD\RIUHVXUUHFWLRQ7KLVLVWKHRUWKRGR[YLVLRQWKDWZHÀQGLQ 2ULJHQ·VWUHDWLVHRQ0DUW\UGRPDQGLQVHYHUDO$SRFDO\SVHV 7KHUHLVDSDUWLFXODUYHUVLRQRIWKLVUHVSHFWIRUWKHKXPDQSHUVRQYLVLEOHLQ WKHERG\DVWKHLPDJHRI*RG7KLVSRVLWLYHHYDOXDWLRQRIWKHERG\LUUDGLDWHV WKHZKROHSHUVRQWKHVRXOLQSDUWLFXODU,QGHHGWKHERG\EHFRPHVDPHWDSKRU IRU WKH VRXO 7KLV LV WKH RSWLRQ VHOHFWHG E\ HDUO\ &KULVWLDQ DUWLVWV DQG WKHLU FRPPDQGLWDLUHVRUSDWURQV,QDUWZKRVHSUHVHUYHGZLWQHVVHVDUHPRVWRIWHQ IXQHUDU\ WKH UHSUHVHQWDWLRQ RI WKH ERG\ PD\ EHFRPH WKH LPDJH RI WKH VRXO RU³SXWGLIIHUHQWO\³WKHLPDJHRIWKHSRVWPRUWHPH[LVWHQFHRIWKHVHOI7KH
)LJ 3UD\LQJ ZRPDQ RUDQW 5RPH &DWDFRPEV RI 6DQWD3ULVFLOOD&XELFXOXPRIWKH´YHLOLQJµ 2Q 2ULJHQ VHH DERYH ² DQG EHORZ ² 2Q WKH $SRFDO\SVH RI 3HWHU DQG WKH $SRFDO\SVHRI3DXOVHH5LFKDUG%DXFNKDPDQG3DROR0DUUDVVLQL´$SRFDO\SVHGH3LHUUHµLQeFULWV DSRFU\SKHVFKUpWLHQV ² DQG&ODXGH&ODLUH.DSSOHUDQG5HQp.DSSOHU´$SRFDO\VHGH3DXOµ LQeFULWVDSRFU\SKHVFKUpWLHQV ² &ODXGH&DUR]]L(VFKDWRORJLHHWDXGHOj5HFKHUFKHVVXU O·$SRFDO\SVHGH3DXO $L[HQ3URYHQFH 3XEOLFDWLRQVGHO·8QLYHUVLWpGH3URYHQFH
+$59$5'7+(2/2*,&$/5(9,(:
)LJ7KHSDWULDUFKV,VDDF$EUDKDPDQG-DFREKROGWKHVRXOVRIWKHEOHVVHG )UHVFRE\7KHRSKiQHVWKH&UHWDQ0RXQW$WKRV*UHDW/DYUD7UiSH]D
SLFWXUHRIWKHRUDQWWKHSUD\LQJZRPDQZLWKDUPVRXWVWUHWFKHGLVSHUKDSVWKH PHWDSKRURIWKHGHSDUWHGVRXO7RSDLQWWKLVÀJXUHRUWRVFXOSWLWTXRWLQJePLOH 0kOHLVWRH[SUHVVIDLWKLQLPPRUWDOLW\ ´/HVSHLQWXUHVOHVSOXVDQFLHQQHVGHV FDWDFRPEHVUHVSLUHQWFHWWHGRXFHXUHWWUDGXLVHQWFHWWHIRLGDQVO·LPPRUWDOLWpHW LOHVWSHXGHFKHIVG·±XYUHTXLQRXVWRXFKHQWDXWDQWTXHFHVSDXYUHVIUHVTXHV jPRLWLpHIIDFpHVµ
Q-RKQ·V*RVSHO3DXODQG-HVXV :K\KDYH,HQWLWOHGWKLVOHFWXUH´7KH6RXO·V&RPHEDFNµ",QDQ\FDVH,GRQRW PHDQWKHLPPRUWDOLW\RIWKHVRXO3ODWR·VLGHDLQRSSRVLWLRQWRWKHUHVXUUHFWLRQ RIWKHERG\WKH&KULVWLDQWUDGLWLRQ1R,PHDQWKH&KULVWLDQKRSHRIDQDIWHUOLIH IRUWKHVHOIDVRSSRVHGWRWRGD\·VREVHVVLRQZLWKWKHERG\LQDIUDPHZRUNRIOLIH OLPLWHGE\GHDWKDVWKHÀQDOSHUVSHFWLYH7ZRTXRWDWLRQVKHOSPHFRQYH\P\ HPSKDVLV7KHÀUVWLVIURP-RKQ&DOYLQLQKLVFRPPHQWVRQ0DWW ´'RQRW ´7KHPRVWDQFLHQWSDLQWLQJVRIWKHFDWDFRPEVEUHDWKHRIWKLVVZHHWQHVVDQGH[SUHVVWKLVIDLWK LQLPPRUWDOLW\DQGIHZPDVWHUSLHFHVPRYHXVPRUHWKDQWKHVHSRRUKDOIHUDVHGIUHVFRHVµePLOH 0kOH5RPHHWVHVYLHLOOHVpJOLVHV 3DULV )ODPPDULRQ
)5$1d2,6%2921
IHDUWKRVHZKRNLOOWKHERG\EXWFDQQRWNLOOWKHVRXO UDWKHUIHDUKLPZKRFDQ GHVWUR\ERWKVRXODQGERG\LQKHOOµ&DOYLQZULWHV´)RUKRZFRPHVLWWKDWWKH GUHDGRIPHQSUHYDLOVLQWKHVWUXJJOHEXWEHFDXVHWKHERG\LVSUHIHUUHGWRWKH VRXODQGLPPRUWDOLW\LVOHVVYDOXHGWKDQDSHULVKLQJOLIH"µ,IRXQGWKHVHFRQG TXRWDWLRQUHDGLQJZLWKVWXGHQWVWKH*UHHNWH[WRI2ULJHQ·VWUHDWLVHRQ0DUW\UGRP ´)RUFUHDWHGLQWKHLPDJHRI*RGLW>WKHVRXO@LVZRUWKLHUWKDQDOOERGLHVµ 7KLVLVZKDWZHÀQGLQQXFHLQÀUVWFHQWXU\&KULVWLDQLW\LQWKH*RVSHORI-RKQ DQGLQWKH3DXOLQHHSLVWOHVWRZKLFKZHQRZWXUQ 7KH*RVSHORI-RKQ 7KH*RVSHORI-RKQZULWWHQDURXQGWKHHQGRIWKHÀUVWFHQWXU\&(LVWKHEHVW ZLWQHVVWRP\WKHVLVWKDWSULRULW\ZDVJLYHQWRVRWHULRORJ\RYHUDQWKURSRORJ\ LQ WKH HDUO\ &KULVWLDQ FRPPXQLWLHV$W QR OD\HU LQ WKH VORZ SURFHVV RI WKLV *RVSHO·VFRPSRVLWLRQLVVSHFLDODWWHQWLRQJLYHQWRDQWKURSRORJLFDOWHUPLQRORJ\ :KDWFRXQWVWRWKHDXWKRUVDQGWRWKH-RKDQQLQHFRPPXQLW\LVQRWDGHÀQLWLRQ RIWKHKXPDQEHLQJEXWWKHVDOYDWLRQRIIHUHG ´HWHUQDOOLIHµ DQGWKH6RQRI*RG DVWKHVRXUFHRIWKDWVDOYDWLRQ-RKQ ²FRPSDUHVWKH6RQWRWKHEURQ]H VHUSHQWZKROLIWHGXSLQWKHZLOGHUQHVVEURXJKWKHDOLQJWRWKHVLFN,VUDHOLWHV 1XP ² :KHQKXPDQVORRNXSWRWKH6RQDVWKH,VUDHOLWHVGLGWRZDUG WKHVHUSHQWWKH\ZLOOUHFHLYHHWHUQDOKHDOLQJ ([SODLQLQJDWWKHHQGRI7KH&LW\RI*RGZKDW´HWHUQDOEOHVVHGQHVVµPHDQV $XJXVWLQH FODLPV WKDW WKH DGMHFWLYH ´HWHUQDOµ GRHV QRW VLPSO\ GHVFULEH DQ HYHUODVWLQJSHULRG 2QWKHFRQWUDU\LWLPSOLHVDQH[WUDRUGLQDU\TXDOLW\7KLVLV HVSHFLDOO\WUXHLQWKH*RVSHORI-RKQ HWHUQDOOLIHLVQRWMXVWDQLQGHÀQLWHSHULRG RIWLPHWKDWEHJLQVDWWKHGHDWKRIEHOLHYHUV,WLVWKHTXDOLW\RIUHODWLRQVKLSZLWK -RKQ&DOYLQ&RPPHQWDU\RQD+DUPRQ\RIWKH(YDQJHOLVWV0DWWKHZ0DUNDQG/XNH WUDQV :LOOLDP3ULQJOH &DOYLQ·V&RPPHQWDULHV (GLQEXUJK &DOYLQ7UDQVODWLRQ6RFLHW\² UHSU &DOYLQ·V &RPPHQWDULHV *UDQG 5DSLGV 0LFK %DNHU ´&DU TXL HVW FDXVH TX·DX FRPEDW OD FUDLQWH GHV KRPPHV O·HPSRUWH VLQRQ SRXU FH TX·RQ SUpIqUH OH FRUSV j O·kPH HW TXH O·LPPRUWDOLWpHVWPRLQVHVWLPpHTXHFHVWHYLHFDGXTXH"µ,GHP6XUOD&RQFRUGDQFHRX+DUPRQLH FRPSRVpHGHWURLVpYDQJpOLVWHVDVFDYRLU60DWWKLHX60DUFHW6/XF YRORI&RPPHQWDLUHV GH-HKDQ&DOYLQVXUOH1RXYHDX7HVWDPHQW YROV 3DULV 0H\UXHLV hJ ga;r ´kat jeijkovna qeou`µ dedhmiourghmevnh timiwtevra ejsti; pavntwn swmavtwn. 2ULJHQ0DUW *&6 %HUOLQ +LQULFKV 6HHDOVR0DFF² 2QWKH*RVSHORI-RKQVHH5D\PRQG(%URZQ$Q,QWURGXFWLRQWRWKH*RVSHORI-RKQ HG )UDQFLV-0RORQH\ $%5/ 1HZHPSKDVLV LQRULJLQDO@
+$59$5'7+(2/2*,&$/5(9,(:
&KULVWWKHGHSWKRIORYHEHWZHHQ*RGDQG*RG·VFKLOGUHQDQGDQH[LVWHQFHWKDW EHJLQVDWWKHPRPHQWRIUHGHPSWLRQ DFFRUGLQJWRDFKULVWRORJLFDODQGQRWDQ DQWKURSRORJLFDOFKURQRORJ\ ,WLVLQGHSHQGHQWRIQDWXUDOOLIHVRWKDWZHZLOO OLYHHYHQLIZHVKDOOGLH VHH-RKQ ² DQG 3DXO :ULWLQJIRXURUÀYHGHFDGHVEHIRUH-RKQ3DXOXVHVWKHDQWKURSRORJLFDOWHUPV IRXQGLQWKH6HSWXDJLQWWKH*UHHNWUDQVODWLRQRIWKH+HEUHZ6FULSWXUHV+H XVHVWHUPVVXFKDV´KHDUWµ´ÁHVKµ´VRXOµDQG´VSLULWµLQDORRVHZD\H[FHSW ZKHQFRQWUDVWLQJWKH´ÁHVKµDQGWKH´VSLULWµ$VVLQIXOH[LVWHQFHEHJLQVZLWK ZURQJ GHVLUH (ejpiqumiva GHYHORSV LQWR VLQ (aJmartiva DQG HQGV ZLWK GHDWK (qavnato~ 5RP ² UHGHHPHGH[LVWHQFHGHVFULEHGDV´ULJKWHRXVQHVVµLV OLIHLQWKH6SLULWQRWPHDQLQJDQHVSHFLDOO\VSLULWXDORUP\VWLFDOH[LVWHQFHEXWD OLIHJXLGHGE\WKH6SLULWRI*RGDFWLYHLQFRQFUHWHORYHIRURQH·VQHLJKERUDQG LQWHQVHORYHIRUWKHGHLW\ $FWLYHLQWKHROGOLIHWKHQHZOLIHFDQEHGHVFULEHGE\3DXODVDVDFULÀFHRI RXUERGLHVDQGWKHUHQHZDORIRXUPLQGV 5RP ² 7KHVRXUFHRIKRSHIRU WKHVHOIFRPHVIURPGLYLQHJUDFH DQGWKHHWKLFDOGLPHQVLRQRIERG\DQGVRXO FDQ RQO\ UHVXOW IURP WKH GHFLVLRQ RI IDLWK WKH KXPDQ UHVSRQVH WR WKH GLYLQH DIÀUPDWLRQRIORYH 7KHUHLVDFOHDUKDUPRQ\EHWZHHQWKH(SLVWOHWRWKH5RPDQVDQGWKH)LUVW (SLVWOHWRWKH&RULQWKLDQV(WHUQDOOLIHEHJLQVDOUHDG\LQWKHKHUHDQGQRZEXW ,WLVQRWVXUSULVLQJWKDWWKH6RQKLPVHOIGHFODUHV ´,DPWKHUHVXUUHFWLRQDQGWKHOLIHµ -RKQ 7KH ZRUGV ´UHVXUUHFWLRQµ DQG ´OLIHµ FRQVWLWXWH D KHQGLDG\V D ZD\ RI H[SUHVVLQJ E\ WZR WHUPVRQHDQGWKHVDPHUHDOLW\7KHWHUP´OLIHµLVTXDOLÀHGE\WKHWHUP´UHVXUUHFWLRQµ,WLVQHZ OLIHGLIIHUHQWIURPWKHQDWXUDOOLIH,WLVDWWKHVDPHWLPHD´UHVXUUHFWLRQµRIWKHSHUVRQEXWZLWK WKHSUHVHQFHRIWKHZRUG´OLIHµLWLVQRWMXVWDIXWXUHKRSHIRUWKHERG\,WLVDSUHVHQWUHDOLW\IRUWKH VHOIDVZHOO7KURXJKWKHJLIWRIWKLVVSHFLDOW\SHRIOLIHWKHVHOIFHDVHVWREH´ÁHVKµ ´%XWWRDOOZKR UHFHLYHGKLPZKREHOLHYHGLQKLVQDPHKHJDYHSRZHUWREHFRPHFKLOGUHQRI*RGZKRZHUHERUQ QRWRIEORRGRURIWKHZLOORIWKHÁHVKRURIWKHZLOORIPDQEXWRI*RGµ -RKQ ² -XVWDVWKHUHZHUHVHYHUDOGLVWLQFWV\QDJRJXHVLQ-HUXVDOHPDVZHOODVLQ5RPHDSOXUDOLW\WKDW ZDVQRWIHOWDVDWKUHDWDJDLQVW-HZLVKLGHQWLW\DQGXQLW\WKHUHZHUHGLIIHUHQW&KULVWLDQFRPPXQLWLHV LQ-HUXVDOHP$QWLRFKRI6\ULDDQG(SKHVXV7KH-RKDQQLQHFRPPXQLW\LQ(SKHVXVWRZKRPRQH RIWKHVHYHQOHWWHUVRIWKHERRNRI5HYHODWLRQZDVDGGUHVVHG 5HY ² ZDVSUREDEO\GLIIHUHQW IURPWKHFRPPXQLW\HVWDEOLVKHGE\3DXOLQWKHVDPHFLW\ VHH&RUDQG$FWV 'HVSLWHWKLV GLIIHUHQFHWKHVDPHIXQGDPHQWDOVWUXFWXUHRIIDLWKZDVDFFHSWHGE\WKHWZRJURXSV:KDWZHKDYH VHHQIRUWKH-RKDQQLQHJURXSFDQEHIRXQGDOVRLQWKH3DXOLQHFKXUFKHV 2Q3DXO·VDQWKURSRORJLFDOWHUPLQRORJ\VHH5REHUW-HZHWW3DXO·V$QWKURSRORJLFDO7HUPV $ 6WXG\RI7KHLU8VHLQ&RQÁLFW6HWWLQJV $*-8 /HLGHQ %ULOO *HRUJH+YDQ.RRWHQ3DXO·V $QWKURSRORJ\LQ&RQWH[W 7KH,PDJHRI*RG$VVLPLODWLRQWR*RGDQG7ULSDUWLWH0DQLQ$QFLHQW -XGDLVP$QFLHQW3KLORVRSK\DQG(DUO\&KULVWLDQLW\ :817 7ELQJHQ 0RKU6LHEHFN $OWKRXJK7KHVV VHHPVWRGLVSOD\DFRPSOHWHDQGÀUPDQWKURSRORJ\ ´0D\WKH*RG RISHDFHKLPVHOIVDQFWLI\\RXHQWLUHO\DQGPD\\RXUVSLULWDQGVRXODQGERG\EHNHSWVRXQGDQG EODPHOHVVDWWKHFRPLQJRIRXU/RUG-HVXV&KULVWµ WKLVYHUVHLVDQH[FHSWLRQDQG3DXO³GLIIHUHQW IURP(SLFWHWXVRU0DUFXV$XUHOLXVWKHWZRVWRLFWKLQNHUV³LVQRWLQWHUHVWHGLQWKHSUDFWLFHRIWKH ERG\DVDVRXUFHRIVDQFWLÀFDWLRQ
)5$1d2,6%2921
WKHSUHVHQWSDUWLFLSDWLRQLQWKLVHWHUQDOOLIHKDSSHQVLQRXUPRUWDOERGLHVDQG FRQIRUPV LWVHOI WR WKH FURVV RI &KULVW )XWXUH SDUWLFLSDWLRQ³LQ FRQWLQXLW\ ZLWKWKHSUHVHQW³ZLOOFRLQFLGHZLWK-HVXV·UHVXUUHFWLRQ,WLVWKHUHIRUHRIYLWDO LPSRUWDQFHWRDIÀUPWKDWWKHUHLVDUHVXUUHFWLRQ &RU $V D -HZ EXW DOVR DV D QDWLYH *UHHN VSHDNHU 3DXO FDQQRW LPDJLQH D VHOI RXWVLGH WKH ERG\ DQ H[LVWHQFH ZLWKRXW D ERG\ %XW ZKDW ZLOO WKH ÀQDO ERG\ EH"&HUWDLQO\LWZLOOEHLQFRQWLQXLW\ZLWKWKHSUHVHQWOLIH WREHVXUHWKDWWKLV LV WKH VDPH SHUVRQ EXW WKHUH ZLOO DOVR EH GLVFRQWLQXLW\ VLQFH WKH TXDOLW\ RI WKHUHVXUUHFWLRQZLOOEHFRPSOHWHO\GLIIHUHQWIURPQDWXUDOH[LVWHQFH7KHUHIRUH 3DXOFUHDWHVWKHH[SUHVVLRQsw`ma pneumatikovn´VSLULWXDOERG\µXVLQJsw`ma ´ERG\µ IRUWKHFRQWLQXLW\DQGpneumatikovn ´VSLULWXDOµ IRUWKHGLVFRQWLQXLW\ IRUWKHQHZQHVV &RU :LHOGLQJWKLVPHWDSKRUXQGHUVWDQGDEOHWRERWK -HZV DQG *UHHNV KH FRPSDUHV RXU SUHVHQW VXIIHULQJ DQG RXU IXWXUH JORULRXV VHOIWRWKHGHVWLQ\RIDVHHGVRZQSK\VLFDOO\EXWUHERUQVSLULWXDOO\DFFRUGLQJ WRDQFLHQWVWDQGDUGVDQGEHOLHIV:HQRWRQO\ORRNOLNHWKHULVHQ&KULVWEXWDOVR SDUWLFLSDWHLQ&KULVW·VH[LVWHQFH ´-XVWDVZHKDYHERUQHWKHLPDJHRIWKHPDQ RIGXVWZHZLOODOVREHDUWKHLPDJHRIWKHPDQRIKHDYHQµ &RU ´)RU WKLVSHULVKDEOHERG\PXVWSXWRQLPSHULVKDELOLW\DQGWKLVPRUWDOERG\PXVWSXW RQLPPRUWDOLW\µ &RU -HVXV ,IZHVHDUFKIRU-HVXV·YLHZRQWKLVPDWWHUXVLQJD*UHHNFRQFRUGDQFHDQGWKH WHUPyuchv ´VRXOµ´OLIHµRU´SHUVRQµ ZHÀQGLQSDUWLFXODUDUHIHUHQFHWR WKHPRVWLPSRUWDQWVD\LQJUHJDUGLQJRXUWRSLFIRULWSUHVXPHVWKHVXUYLYDORI WKHSHUVRQLQRQHZD\RUDQRWKHUDIWHUGHDWK LWXQGHUVFRUHVWKHLPSRUWDQFHRI WKH´VRXOµDORQJZLWKWKHUHDOLW\RIWKH´ERG\µ LWJLYHVVWUHQJWKDQGKRSHWRDOO 2Q-HVXV·GHDWKDQGUHVXUUHFWLRQDVDVDYLQJHYHQWUHFHLYHGE\IDLWKVHH5XGROI%XOWPDQQ 7KHRORJLHGHV1HXHQ7HVWDPHQWV HG2WWR0HUN WKHG 8QL7DVFKHQEFKHU 7ELQJHQ 0RKU SS ²2QWKHSDUDOOHOVEHWZHHQ-HVXV·UHVXUUHFWLRQDQGWKHEHOLHYHUV·UHVXUUHFWLRQ VHH5RP ² %UHQGDQ%\UQH5RPDQV 63 &ROOHJHYLOOH0LQQ /LWXUJLFDO3UHVV ² +HUHLQQXFHZHÀQGDOUHDG\WKHIXWXUHGLVWLQFWLRQEHWZHHQLPDJRDQGVLPLOLWXGRIRUWRGD\ KXPDQEHLQJVORRNOLNH$GDPDQG(YHERUQIURPHDUWKQDWXUDODQGPRUWDO LQWKHLPDJHRI*RG LPDJR EXWDV&KULVWLDQVWKH\VKDOOEHDVVLPLODWHGWR&KULVWWKHODVW$GDPZKRFDPHQRWIURPHDUWK EXWIURPKHDYHQ LQVLPLODULW\ZLWK*RGVLPLOLWXGR VHH&RU ̼ 6HH)UDQoRLV$OWHUPDWK 'XFRUSVSV\FKLTXHDXFRUSVVSLULWXHO,QWHUSUpWDWLRQGH&RU² SDUOHVDXWHXUVFKUpWLHQV GHVTXDWUHSUHPLHUVVLqFOHV %*%( 7ELQJHQ 0RKU6LHEHFN 2Q &RU VHH :ROIJDQJ 6FKUDJH 'HU HUVWH %ULHI DQ GLH .RULQWKHU .RU ² (..17 'VVHOGRUI %HQ]LJHU 1HXNLUFKHQ9OX\Q 1HXNLUFKHQHU9HUODJ :KHQ-HVXVDFFRUGLQJWR0DUN VD\VWKDWWKH6RQRIPDQKDVFRPHQRWWREHVHUYHG EXWWRVHUYHDQGWRJLYHKLVyuchv DVDUDQVRPIRUPDQ\WKHUHLVOLWWOHGRXEWWKDWKHPHDQVKHUH ´KLV OLIHµ %XW ZKHQ DW *HWKVHPDQH KH VLJKV VD\LQJ ´P\ yuchv LV GHHSO\ JULHYHGµ KH PHDQV KLV VRXO DQG KLV VSLULW KLV PHQWDO DQG DIIHFWLYH SDUWV 0DWW &RPSDUHG ZLWK /XNH 0DUN ³DVLWLVIRUPXODWHGZLWKWKHVRWHULRORJLFDODOOXVLRQWRDUDQVRP³LVPRUHOLNHO\WKH H[SUHVVLRQRIWKHÀUVWFRPPXQLW\WKDQZRUGVVSRNHQE\WKHKLVWRULFDO-HVXV6HHDOVR/XNH $FWV DQG+HE
+$59$5'7+(2/2*,&$/5(9,(:
)LJ$QDQJHOZUHVWLQJWKHVRXORIDPRQNIURPKLVFRUSVH )URPD3VDOWHU'LRQ\VLRX0RXQW$WKRV'LRQ\VLRX
&KULVWLDQVLQWLPHVRISHUVHFXWLRQRUGLVWUHVVDQGLWLVWKHVD\LQJH[SODLQHGE\ -RKQ&DOYLQPHQWLRQHGHDUOLHULQWKLVOHFWXUH.QRZLQJWKDWIHDUFDQRYHUZKHOP DQ\RQHLQPDQ\GLIIHUHQWFLUFXPVWDQFHV-HVXVVD\V ´'RQRWIHDUWKRVHZKRNLOO WKHERG\EXWFDQQRWNLOOWKHVRXO UDWKHUIHDUKLPZKRFDQGHVWUR\ERWKVRXODQG ERG\LQKHOOµ 0DWW +HUHZHÀQGWKDW-HVXVEHOLHYHVDQGSUHVXSSRVHV WKDWKXPDQOLIHGRHVQRWVWRSDWWKHPRPHQWRIGHDWKDQGZKDWKHFDOOV´VRXOµ FDQVXUYLYHDIWHUGHSDUWXUHIURPWKHERG\7KLVVD\LQJFRQÀUPVDOVRWKHVHULRXV HWKLFDOGLPHQVLRQRIHWHUQDOOLIH &KULVWLDQUHGHPSWLRQLVQRWMXVWDVZHHWSURPLVH RIHWHUQDOGHOLJKWEXWWKHJLIW³QRWZLWKRXWUHTXLUHPHQWV³RIUHVXUUHFWLRQDQG LPPRUWDOLW\LQWKHIUDPHZRUNRIIDLWKDQGSHUVHYHUDQFH 2Q 0DWW VHH 8OULFK /X] 'DV (YDQJHOLXP QDFK 0DWWKlXV 0W ² (..17 =XULFK %HQ]LJHU 1HXNLUFKHQ9OX\Q 1HXNLUFKHQHU9HUODJ ²2QHVKRXOGUHPHPEHU WKHSDUDOOHOWRWKHVD\LQJLQ0DFFE² ´:LWKDOORXUKHDUWVOHWXVFRQVHFUDWHRXUVHOYHV XQWR*RGZKRJDYHXVRXUVRXOVDQGOHWXVH[SHQGRXUERGLHVIRUWKHFXVWRGLDQVKLSRIWKH/DZ /HWXVKDYHQRIHDURIKLPZKRWKLQNVKHNLOOV*UHDWLVWKHRUGHDODQGSHULORIWKHVRXOWKDWOLHV LQZDLWLQHWHUQDOWRUPHQWIRUWKRVHZKRWUDQVJUHVVWKHFRPPDQGPHQWRI*RGµ+$QGHUVRQ´ 0DFFDEHHV $1HZ7UDQVODWLRQDQG,QWURGXFWLRQµLQ7KH2OG7HVWDPHQW3VHXGHSLJUDSKD HG-DPHV +&KDUOHVZRUWK YROV /RQGRQ 'DUWRQ/RQJPDQ 7RGG ² ,QVXEVHTXHQWFHQWXULHV&KULVWLDQOHDGHUVHPSKDVL]HGDQGFRQWUDVWHGWKHGHVWLQ\RIWKHHOHFW DQGWKHSXQLVKPHQWRIRWKHUV7KHVHSDUDWLRQRIWKHWZRJURXSVEHJDQLQHDUO\DSRFDO\SWLFOLWHUDWXUH ´0DQ\RIWKRVHZKRVOHHSLQWKHGXVWRIWKHHDUWKVKDOODZDNHVRPHIRUHYHUODVWLQJOLIHDQGVRPH
)5$1d2,6%2921
Q6SLULWXDO([SHULHQFH7RGD\ 7KLVYR\DJHEDFNZDUGVIURPODWHDQWLTXLW\WRWKHWLPHRI-HVXVFRPSHOVPHWR SOHDGLQIDYRURIWKHVRXODVWKHPRVWSUHFLRXVJLIWJLYHQWRKXPDQNLQG%XW, GRQRWZLVKWRGHÀQHWKHVRXODV$ULVWRWOHRU7HUWXOOLDQGLG,GRQRWZLVKWR VSHFXODWHDV'HVFDUWHVGLG,GRQRWGDUHWRH[SODLQWKHUHODWLRQVKLSEHWZHHQWKH ERG\DQGWKHVRXORUHPERGLPHQWDV0HUOHDX3RQW\GRHV0\RQO\SXUSRVHLV WRDYRLGDWWULEXWLQJDGLVDSSRLQWLQJOLPLWDWLRQWRWKHERG\DQGWRGUDZDWWHQWLRQ WRWKHGDQJHURIDFDGHPLFVNHSWLFLVPZLWKUHVSHFWWRWKHDIWHUOLIH,WVRXQGVOLNH DVHUPRQDQGLQVRPHPHDVXUHLWLV6RPHPD\UHIXVHWRDFFHSWWKLVUHOLJLRXV WUDGLWLRQEXWLQWHOOHFWXDOO\WKH\FDQQRWGHQ\WKHH[LVWHQFHRIWKHYRLFHRIKRSH DQGIDLWKDVLWLVHFKRHGLQ2ULJHQ·VRSLQLRQWKDWWKHVRXOLVZRUWKLHUWKDQDOO ERGLHV 1RZ WKDW ZH KDYH VHHQ WKH UHOHYDQFH WKDW &KULVWLDQV RI WKH ÀUVW FHQWXULHV DWWULEXWHGWRWKHVRXOZKDWGRZHGRZLWKWKHUHFHQWUHÁHFWLRQVRQWKHERG\E\ 0DXULFH 0HUOHDX3RQW\ 0LFKHO )RXFDXOW +DQQDK$UHQGW 3LHUUH +DGRW DQG 3HWHU%URZQ",ZRXOGOLNHWRXVHWKLVLPSUHVVLYHDPRXQWRIUHVHDUFKÀUVWDV DQLQYLWDWLRQWRXQGHUVFRUHKXPDQUHVSRQVLELOLW\LQWKLVOLIHDQGLQWKLVZRUOG,Q GRLQJVR,LQWURGXFHDQH[SUHVVLRQWKDWWKHRORJLDQVKDYHFUHDWHG ´HVFKDWRORJLFDO UHVHUYDWLRQµ7RXQGHUVWDQGWKLVQRWLRQLWLVQHFHVVDU\WRORRNDW3DXO·VHSLVWOH WRWKH5RPDQV:KLOH3DXOVD\VLQ5RPDQVWKDWZHKDYHEHHQFUXFLÀHGZLWK -HVXV&KULVWKHGRHVQRWGDUHVD\WKDWZHKDYHEHHQUDLVHGDJDLQZLWKKLP WRVKDPHDQGHYHUODVWLQJFRQWHPSWµ 'DQ 7KLVHVFKDWRORJLFDOSHUVSHFWLYHLVSUHVHQWDVZHOOLQ WKH6\QRSWLF*RVSHOV UHPHPEHUWKHJUHDWSLFWXUHRIWKHVKHHSDQGWKHJRDWV 0DWW ² MXVWDV LWLVLQWKH*RVSHORI-RKQ ´'RQRWEHDVWRQLVKHGDWWKLVIRUWKHKRXULVFRPLQJZKHQDOOZKRDUH LQWKHJUDYHVZLOOKHDUKLVYRLFHDQGZLOOFRPHRXW³WKRVHZKRKDYHGRQHJRRGWRWKHUHVXUUHFWLRQ RIOLIHDQGWKRVHZKRKDYHGRQHHYLOWRWKHUHVXUUHFWLRQRIFRQGHPQDWLRQµ -RKQ ² 6HH$ULVWRWOH2QWKH6RXO3DUYD1DWXUDOLD2Q%UHDWK HG:DOWHU6+HWW $ULVWRWOH /&/ UHYHG &DPEULGJH +DUYDUG8QLYHUVLW\3UHVV 5HQp 'HVFDUWHV 0pGLWDWLRQV WRXFKDQW OD SUHPLqUH SKLORVRSKLH PDLQO\ WKH VHFRQG DQG WKH VL[WKPHGLWDWLRQV VHHDOVRWKHIRXUWKSDUWRI'HVFDUWHV·V'LVFRXUVGHODPpWKRGH VHH0DUWLQ7KH &RULQWKLDQ%RG\² 0DXULFH0HUOHDX3RQW\3KpQRPpQRORJLHGHODSHUFHSWLRQ LGHP/·XQLRQGHO·kPHHWGXFRUSV FKH]0DOHEUDQFKH%LUDQHW%HUJVRQ1RWHVSULVHVDXFRXUVGH0DXULFH0HUOHDX3RQW\ HG-HDQ 'HSUXQ UHYHG %LEOLRWKqTXHG·KLVWRLUHGHODSKLORVRSKLH 3DULV 9ULQ 6HH DOVR *UHJRU\ - 5LOH\ 5HVXUUHFWLRQ 5HFRQVLGHUHG 7KRPDV DQG -RKQ LQ &RQWURYHUV\ 0LQQHDSROLV0LQQ )RUWUHVV ´6RFUDWHVIHOWLWKLVGLYLQHPLVVLRQWRSHUVXDGHKLVIHOORZ $WKHQLDQVWRFRQFHQWUDWHWKHLUHIIRUWVRQWKHFXOWLYDWLRQRIWKHJRRGRIWKHVRXORYHUDJDLQVWWKDW RIWKHERG\µ 0LFKHO)RXFDXOW/HVRXFLGHVRL YRORI+LVWRLUHGHODVH[XDOLWp %LEOLRWKqTXHGHVKLVWRLUHV 3DULV *DOOLPDUG +DQQDK$UHQGW9LWDDFWLYDRGHU9RPWlWLJHQ/HEHQ GHG 0XQLFK 3LSHU 3LHUUH +DGRW ([HUFLFHV VSLULWXHOV HW SKLORVRSKLH DQWLTXH SUpIDFH G·$UQROG , 'DYLGVRQ %LEOLRWKqTXH GH O·pYROXWLRQ GH O·KXPDQLWp G HG 3DULV $OELQ 0LFKHO 3HWHU %URZQ 7KH %RG\ DQG 6RFLHW\ 0HQ :RPHQ DQG 6H[XDO 5HQXQFLDWLRQ LQ (DUO\ &KULVWLDQLW\ 7ZHQWLHWK DQQLYHUVDU\HGLWLRQZLWKDQHZLQWURGXFWLRQ 1HZ
+$59$5'7+(2/2*,&$/5(9,(:
6HQVLWLYHWRWKHHVFKDWRORJLFDOUHVHUYDWLRQKHVD\VWKDWIURPQRZRQZHFDQOLYH LQQHZQHVVRIOLIHEXWQRW\HWLQIXOOUHVXUUHFWLRQ,QFRQIRUPLW\ZLWKWKHDSRVWOH HDUO\&KULVWLDQVGLGQRWÁHHIURPWKHLUERGLHVEXWDFFHSWHGWKHLULQVHUWLRQLQWR WKLVOLIH7KH\VWURYHWRUHVSHFWWKHLUHWKLFDOGXW\ 7KH UHFHQW HPSKDVLV RQ WKH ERG\ XUJHV XV QRW WR UHWXUQ WR WKH W\SH RI VSLULWXDOLW\SURFODLPHGE\WKHSXEOLVKHU+HQUL/RXLV0HUPRG ZKRZDVWU\LQJ WRHGXFDWHWKH\RXQJVWXGHQWWKDW,ZDVDWWKDWWLPH E\VKRXWLQJ ´:HDUHDOORI XV3ODWRQLVWVDUHQ·WZH"µ7KLVDWWLWXGHLVQRORQJHUDSSURSULDWHIRURXUVRXO LVLQWLPDWHO\GHSHQGHQWRQRXUERG\DQGRXUERG\RQRXUVRXO7KLVLVDVHFRQG SRVLWLYHUHVXOWRIWKHFXUUHQWLQWHUHVWLQWKHERG\,QP\YLHZKRZHYHUWKHUHLV LQWKHKXPDQSHUVRQDQHOHPHQWRIP\VWHU\RILUUHGXFLEOHVXEMHFWLYLW\WKDWWKH WHUP´VRXOµSUHVHUYHV7KLVSRUWLRQLVDVOLJKWDVWKHDQFLHQWGHÀQLWLRQRIWKHVRXO DVDEXWWHUÁ\UHFDOOV$QGLWLVH[FHHGLQJO\WKLQDVDUHFHQW3K'JUDGXDWHIURP +DUYDUG8QLYHUVLW\ 'HSDUWPHQWRI+LVWRU\ *UHJRU\6PLWKXQGHUVFRUHVLQWKH WLWOHRIKLVGLVVHUWDWLRQ 9HU\7KLQ7KLQJV 7RZDUGD&XOWXUDO+LVWRU\RIWKH6RXO LQ5RPDQ$QWLTXLW\7KHVRXOHVFDSHVIURPRQH·VKDQGOLNHDWKLQVKHHWDVLW GRHVLQWKHGHDWKRIWKHSDUWULDUFKUHFRUGHGLQWKH7HVWDPHQWRI$EUDKDP %XW EHLQJVRWKLQLWLVDSDUWRIXVWKDWUHIXVHVDOOODZVRIFRQWLQJHQF\DQGPRUWDOLW\ 5HFHQWO\,HQMR\HGUHDGLQJ'UHZ/HGHU·V7KH$EVHQW%RG\ZKLFK0LFKDHO -DFNVRQKDGPHQWLRQHGWRPH%RWK0HUOHDX3RQW\DQG/HGHUUHIXVHWRFRQVLGHU WKHERG\DVDQREMHFWRIVWXG\%RWKDOVRSDUWLFLSDWHLQWKHSKLORVRSKLFDOUHDFWLRQ DJDLQVWWKHDOOWRRHDV\WHQGHQF\VLQFH3ODWRWRSUHIHUGLVHPERGLPHQW:KLOH 0HUOHDX3RQW\LQKLV3KpQRPpQRORJLHGHODSHUFHSWLRQH[DPLQHGWKHH[WHUQDO ERG\/HGHUKDVEHHQDWWHQWLYHWRWKHLQWHUQDOERG\WRWKHYLVFHUDOSDUWRIRXU EHLQJ/HGHU·VPDLQWKHVLVWKDW0HUOHDX3RQW\VWLOOLJQRUHVLVH[FLWLQJ ZKHQZH XVHLWZKHQHYHU\WKLQJLVÀQHZHIRUJHWRXUERG\7KHERG\LVDEVHQW(QJDJHG LQ D VSRUWV FRPSHWLWLRQ , FRQFHQWUDWH H[FOXVLYHO\ RQ WKH JDPH$QG /HGHU UHPDUNVFRUUHFWO\WKDWZHUHPHPEHURXUERG\RQO\DWWKHPRPHQWVRPHWKLQJ 1HXNLUFKHQHU9HUODJ ² 2QWKH´HVFKDWRORJLFDOUHVHUYDWLRQµVHH(UQVW.lVHPDQQ$QGLH5|PHU +17D 7ELQJHQ 0RKU 6LHEHFN DQG LGHP 3DXOLQLVFKH 3HUVSHNWLYHQ 7ELQJHQ 0RKU 6LHEHFN +HQUL/RXLV 0HUPRG ZDV DQ LQÁXHQWLDO HGLWRU LQ WKH PLGGOH RI WKH WZHQWLHWK FHQWXU\ LQ )UHQFKVSHDNLQJ 6ZLW]HUODQG 7KH FRQYHUVDWLRQ , UHFDOO WRRN SODFH DW 9LG\ DORQJ WKH /DNH RI *HQHYDGXULQJDSUHSDUDWLRQRIWKH&KHPLQGX&KkWHDXj9LG\DQHDUO\PRUQLQJZDONKRQRULQJ 0DMRU'DYHODQGIROORZLQJRQ$SULO WKHSDWKWKDWKHWRRN$SULOJRLQJIURPKLV SULVRQ WR KLV H[HFXWLRQ 6HH -XVWH 2OLYLHU /H 0DMRU 'DYHO IROORZHG E\ +RPPDJH DX 0DMRU E\ &KDUOHV)HUGLQDQG5DPX] /DXVDQQH 0HUPRG 3K'GLVV+DUYDUG8QLYHUVLW\ /RQJUHFHQVLRQRIWKH*UHHN7HVWDPHQWRI$EUDKDP ² VHH)UDQFLV6FKPLGW/H7HVWDPHQW JUHFG·$EUDKDP,QWURGXFWLRQpGLWLRQFULWLTXHGHVGHX[UHFHQVLRQVJUHFTXHVWUDGXFWLRQ 7H[WHXQG 6WXGLHQ]XP$QWLNHQ-XGHQWXP 7ELQJHQ 0RKU6LHEHFN ² 'UHZ/HGHU7KH$EVHQW%RG\ &KLFDJR 8QLYHUVLW\RI&KLFDJR3UHVV ,ELG
)5$1d2,6%2921
LVJRLQJZURQJZKLFKKHFDOOV´G\VIXQFWLRQµ7KHUHIRUHDWKLUGSRVLWLYHUHVXOW RIWKHUHFHQWSDVVLRQIRUWKHERG\LVDUHPLQGHURIWKHVHOIDUHPLQGHURIRXU IUDJLOH³DQGQRWKHURLF³FRQVWLWXWLRQ
Q&RQFOXVLRQ , UHDG LQ WKH HDUO\ &KULVWLDQ ZLWQHVVHV D VSHFLDO LQWHUHVW LQ WKH VRXO DQG LWV LPPRUWDOLW\VWURQJO\UHODWHGWRWKHLUIDLWKLQWKHUHVXUUHFWLRQLWVHOI,PPRUWDOLW\ ZDVQRWIRUWKHPDQDQWKURSRORJLFDOJLYHQEXWDFKULVWRORJLFDOJLIW,WZDVIRU WKHPWKHIUXLWRIUHGHPSWLRQDQGQRWWKHUHVXOWRIDQLPPDQHQWSURFHVV'LIIHUHQW IURPPDQ\REVHUYDWLRQVWRGD\WKHLUFRQFHUQIRUWKHERG\HYHQIRUWKHÁHVK LQWKHIUDPHZRUNRIWKHUHVXUUHFWLRQRIWKHGHDG ZHQWKDQGLQKDQGZLWKWKH FRQWLQXLW\RIWKHSHUVRQLQDZD\WKDWZHFDQFDOOWKHVRXO7KH\ZHUHLQWHUHVWHG LQWKHERG\DVLWUHODWHGWRWKHLUKRSHLQWKHUHVXUUHFWLRQDQGWRWKHLUUHÁHFWLRQ RQ WKH LQFDUQDWLRQ RI WKH 6RQ7KH\ SUHIHUUHG WKH ÀUVW SHUVRQ VLQJXODU ´,µ WR
$PRQJWKHERRNVDQGDUWLFOHVWKDW,KDYHQRW\HWPHQWLRQHG,KDYHVHOHFWHGLQFKURQRORJLFDO RUGHU (UZLQ5RKGH3V\FKH6HHOHQFXOWXQG8QVWHUEOLFKNHLWVJODXEHGHU*ULHFKHQ WKDQGWKHG 7ELQJHQ 0RKU6LHEHFN )UDQ]&XPRQW/X[SHUSHWXD 3DULV *HXWKQHU DUHSULQWHG YHUVLRQ HGLWHG E\ %UXQR 5RFKHWWH DQG $QGUp 0RWWH ZDV SXEOLVKHG E\ 1LQR $UDJQR LQ 7XULQ >,WDO\@DQGGLVWULEXWHGE\%UHSROVLQ7XUQKRXW>%HOJLXP@LQ 2VFDU&XOOPDQQ,PPRUWDOLWpGH O·kPHRXUpVXUUHFWLRQGHVPRUWV" GHG 1HXFKkWHO 'HODFKDX[ 1LHVWOp .DUHO+DQKDUW 7KH,QWHUPHGLDWH6WDWHLQWKH1HZ7HVWDPHQW *URQLQJHQ 'UXN95%.OHLQH :DOWHU) 2WWR'LH0DQHQRGHUYRQGHQ8UIRUPHQGHV7RWHQJODXEHQV(LQH8QWHUVXFKXQJ]XU5HOLJLRQGHU *ULHFKHQ5|PHUXQG6HPLWHQXQG]XP9RONVJODXEHQEHUKDXSW GHG 'DUPVWDGW :LVVHQVFKDIWOLFKH %XFKJHVHOOVFKDIW -DQ1%UHPPHU7KH(DUO\*UHHN&RQFHSWRIWKH6RXO 3ULQFHWRQ1- 3ULQFHWRQ8QLYHUVLW\3UHVV $ODQ(%HUQVWHLQ7KH)RUPDWLRQRI+HOO 'HDWKDQG5HWULEXWLRQ LQWKH$QFLHQWDQG(DUO\&KULVWLDQ:RUOGV ,WKDFD1< &RUQHOO8QLYHUVLW\3UHVV +RUDFLR (/RQDhEHUGLH$XIHUVWHKXQJGHV)OHLVFKHV6WXGLHQ]XUIUKFKULVWOLFKHQ(VFKDWRORJLH %=1: %HUOLQ GH*UX\WHU $,%DXPJDUWHQ-$VVPDQQDQG**6WURXPVDHGV6HOI6RXO DQG%RG\LQ5HOLJLRXV([SHULHQFH 6+5 /HLGHQ %ULOO 1LFKRODV&RQVWDV´¶7R6OHHS 3HUFKDQFHWR'UHDP· 7KH0LGGOH6WDWHRI6RXOVLQ3DWULVWLFDQG%\]DQWLQH/LWHUDWXUHµ'23 ² /DUpVXUUHFWLRQFKH]OHV3qUHV HG-HDQ0DUF3ULHXU &DKLHUVGH%LEOLD3DWULVWLFD 6WUDVERXUJ 8QLYHUVLWp0DUF%ORFK -RQ'/HYHQVRQ5HVXUUHFWLRQDQGWKH5HVWRUDWLRQRI ,VUDHO 7KH8OWLPDWH9LFWRU\RIWKH*RGRI/LIH 1HZ+DYHQ&RQQ
+$59$5'7+(2/2*,&$/5(9,(:
WKHLPSHUVRQDOWKLUGSHUVRQ´VKHµRU´KHµ8VLQJWKH*HUPDQGLVWLQFWLRQWKH\ SUHIHUUHG/HLEUDWKHUWKDQ.|USHU7KH\FODLPHGDKROLVWLFYLHZRIWKHSHUVRQ ZLWKHWKLFDOHPERGLPHQWQRZDQGWKHULVHQSHUVRQWRPRUURZDQGVXJJHVWHGWKH SUHVHUYDWLRQRIWKHSHUVRQ EHWZHHQWKHWZR WKURXJKWKHH[LVWHQFHRIWKHVRXO DQGWKHFDUHDQGPHPRU\RIWKHLU*RG
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
