T HR Harvard Theological Review
103:4
OCTOBER 2010 ISSN 0017-8160
+DUYDUG7KHRORJLFDO5HYLHZ 022'345...
289 downloads
1373 Views
5MB Size
Report
This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below!
Report copyright / DMCA form
T HR Harvard Theological Review
103:4
OCTOBER 2010 ISSN 0017-8160
+DUYDUG7KHRORJLFDO5HYLHZ 022'3455677(4678('090.070.45945'.095207
+DUYDUG7KHRORJLFDO5HYLHZ
!"#$ #%%& ' ( ) ' !*!$ #%%&+)5HYLHZ, )
-) . , / ) ) ), +01 ), ) ) ,) +
&2(',7256
.HYLQ-0DGLJDQDQG-RQ'/HYHQVRQ ( ' , 72 5 , $ / % 2 $ 5 '
*LRYDQQL%D]]DQD)UDQFLV;&ORRQH\/HLJK(ULF6FKPLGW $ 6 6 2 & , $7 ( ( ' , 7 2 5 6
0HPEHUVRIWKH)DFXOW\RI'LYLQLW\ 0$1$*,1*(',725
0DUJDUHW6WXGLHU ( ' , 7 2 5 , $ / $ 6 6 , 6 7$ 1 7 6
0LFKDO%HWK'LQNOHU%ULDQ'RDN6DUDK(OWDQWDZL.DWKDULQH5HLG*HUEQHU -DPHV-XPSHU ?+ +&+ ( ) 2&@2) , =*UHHN@ ´,SXWRQLPSHULVKDELOLW\E\KLVQDPHDQGWRRNRIISHULVKDELOLW\ E\KLVJUDFH'HDWKZDVDQQLKLODWHGEHIRUHP\IDFHDQGWKHUHDOPRIWKHGHDG >6KHRO@GHVWUR\HGE\P\ZRUGµ2GHV6RO² 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$WKHQDJRUDV6XSSOLTXHDXVXMHWGHVFKUpWLHQVHW6XUODUpVXUUHFWLRQGHVPRUWVHG%HUQDUG 3RXGHURQ6&3DULV&HUI LGHP(PEDVV\IRUWKH&KULVWLDQV7KH5HVXUUHFWLRQRIWKH 'HDGWUDQVDQGDQQRWDWHGE\-RVHSK+XJK&UHKDQ$&::HVWPLQVWHU0G1HZPDQ 3VHXGR-XVWLQ6XOODUHVXUUH]LRQH'LVFRUVRFULVWLDQRGHO,,VHFRORHG$OEHUWR'·$QQD/HWWHUDWXUD &ULVWLDQD$QWLFD%UHVFLD0RUFHOOLDQD LGHPhEHUGLH$XIHUVWHKXQJ7H[WXQG6WXGLHHG 0DUWLQ +HLPJDUWQHU %HUOLQ GH *UX\WHU 7HU]D /HWWHUD DL &RULQ]L 3VHXGR*LXVWLQR /D 5LVXUUH]LRQHHG$OEHUWR'·$QQD/HWWXUH&ULVWLDQHGHO3ULPR0LOHQQLR0LODQ3DROLQH 9DKDQ+RYKDQHVVLDQ7KLUG&RULQWKLDQV5HFODLPLQJ3DXOIRU&KULVWLDQ2UWKRGR[\1HZHPSKDVLV LQRULJLQDO@
+$59$5'7+(2/2*,&$/5(9,(:
&KULVWWKHGHSWKRIORYHEHWZHHQ*RGDQG*RG·VFKLOGUHQDQGDQH[LVWHQFHWKDW EHJLQVDWWKHPRPHQWRIUHGHPSWLRQDFFRUGLQJWRDFKULVWRORJLFDODQGQRWDQ DQWKURSRORJLFDOFKURQRORJ\ ,WLVLQGHSHQGHQWRIQDWXUDOOLIHVRWKDWZHZLOO OLYHHYHQLIZHVKDOOGLHVHH-RKQ²DQG 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~ 5RP² UHGHHPHGH[LVWHQFHGHVFULEHGDV´ULJKWHRXVQHVVµLV OLIHLQWKH6SLULWQRWPHDQLQJDQHVSHFLDOO\VSLULWXDORUP\VWLFDOH[LVWHQFHEXWD OLIHJXLGHGE\WKH6SLULWRI*RGDFWLYHLQFRQFUHWHORYHIRURQH·VQHLJKERUDQG LQWHQVHORYHIRUWKHGHLW\ $FWLYHLQWKHROGOLIHWKHQHZOLIHFDQEHGHVFULEHGE\3DXODVDVDFULÀFHRI RXUERGLHVDQGWKHUHQHZDORIRXUPLQGV5RP² 7KHVRXUFHRIKRSHIRU WKHVHOIFRPHVIURPGLYLQHJUDFHDQGWKHHWKLFDOGLPHQVLRQRIERG\DQGVRXO FDQ RQO\ UHVXOW IURP WKH GHFLVLRQ RI IDLWK WKH KXPDQ UHVSRQVH WR WKH GLYLQH DIÀUPDWLRQRIORYH 7KHUHLVDFOHDUKDUPRQ\EHWZHHQWKH(SLVWOHWRWKH5RPDQVDQGWKH)LUVW (SLVWOHWRWKH&RULQWKLDQV(WHUQDOOLIHEHJLQVDOUHDG\LQWKHKHUHDQGQRZEXW ,WLVQRWVXUSULVLQJWKDWWKH6RQKLPVHOIGHFODUHV´,DPWKHUHVXUUHFWLRQDQGWKHOLIHµ-RKQ 7KH ZRUGV ´UHVXUUHFWLRQµ DQG ´OLIHµ FRQVWLWXWH D KHQGLDG\V D ZD\ RI H[SUHVVLQJ E\ WZR WHUPVRQHDQGWKHVDPHUHDOLW\7KHWHUP´OLIHµLVTXDOLÀHGE\WKHWHUP´UHVXUUHFWLRQµ,WLVQHZ OLIHGLIIHUHQWIURPWKHQDWXUDOOLIH,WLVDWWKHVDPHWLPHD´UHVXUUHFWLRQµRIWKHSHUVRQEXWZLWK WKHSUHVHQFHRIWKHZRUG´OLIHµLWLVQRWMXVWDIXWXUHKRSHIRUWKHERG\,WLVDSUHVHQWUHDOLW\IRUWKH VHOIDVZHOO7KURXJKWKHJLIWRIWKLVVSHFLDOW\SHRIOLIHWKHVHOIFHDVHVWREH´ÁHVKµ´%XWWRDOOZKR UHFHLYHGKLPZKREHOLHYHGLQKLVQDPHKHJDYHSRZHUWREHFRPHFKLOGUHQRI*RGZKRZHUHERUQ QRWRIEORRGRURIWKHZLOORIWKHÁHVKRURIWKHZLOORIPDQEXWRI*RGµ-RKQ² -XVWDVWKHUHZHUHVHYHUDOGLVWLQFWV\QDJRJXHVLQ-HUXVDOHPDVZHOODVLQ5RPHDSOXUDOLW\WKDW ZDVQRWIHOWDVDWKUHDWDJDLQVW-HZLVKLGHQWLW\DQGXQLW\WKHUHZHUHGLIIHUHQW&KULVWLDQFRPPXQLWLHV LQ-HUXVDOHP$QWLRFKRI6\ULDDQG(SKHVXV7KH-RKDQQLQHFRPPXQLW\LQ(SKHVXVWRZKRPRQH RIWKHVHYHQOHWWHUVRIWKHERRNRI5HYHODWLRQZDVDGGUHVVHG5HY² 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 $QWKURSRORJ\LQ&RQWH[W7KH,PDJHRI*RG$VVLPLODWLRQWR*RGDQG7ULSDUWLWH0DQLQ$QFLHQW -XGDLVP$QFLHQW3KLORVRSK\DQG(DUO\&KULVWLDQLW\:8177ELQJHQ0RKU6LHEHFN $OWKRXJK7KHVVVHHPVWRGLVSOD\DFRPSOHWHDQGÀUPDQWKURSRORJ\´0D\WKH*RG RISHDFHKLPVHOIVDQFWLI\\RXHQWLUHO\DQGPD\\RXUVSLULWDQGVRXODQGERG\EHNHSWVRXQGDQG EODPHOHVVDWWKHFRPLQJRIRXU/RUG-HVXV&KULVWµ WKLVYHUVHLVDQH[FHSWLRQDQG3DXO³GLIIHUHQW IURP(SLFWHWXVRU0DUFXV$XUHOLXVWKHWZRVWRLFWKLQNHUV³LVQRWLQWHUHVWHGLQWKHSUDFWLFHRIWKH ERG\DVDVRXUFHRIVDQFWLÀFDWLRQ
)5$1d2,6%2921
WKHSUHVHQWSDUWLFLSDWLRQLQWKLVHWHUQDOOLIHKDSSHQVLQRXUPRUWDOERGLHVDQG FRQIRUPV LWVHOI WR WKH FURVV RI &KULVW )XWXUH SDUWLFLSDWLRQ³LQ FRQWLQXLW\ ZLWKWKHSUHVHQW³ZLOOFRLQFLGHZLWK-HVXV·UHVXUUHFWLRQ,WLVWKHUHIRUHRIYLWDO LPSRUWDQFHWRDIÀUPWKDWWKHUHLVDUHVXUUHFWLRQ&RU $V D -HZ EXW DOVR DV D QDWLYH *UHHN VSHDNHU 3DXO FDQQRW LPDJLQH D VHOI RXWVLGH WKH ERG\ DQ H[LVWHQFH ZLWKRXW D ERG\ %XW ZKDW ZLOO WKH ÀQDO ERG\ EH"&HUWDLQO\LWZLOOEHLQFRQWLQXLW\ZLWKWKHSUHVHQWOLIHWREHVXUHWKDWWKLV LV WKH VDPH SHUVRQ EXW WKHUH ZLOO DOVR EH GLVFRQWLQXLW\ VLQFH WKH TXDOLW\ RI WKHUHVXUUHFWLRQZLOOEHFRPSOHWHO\GLIIHUHQWIURPQDWXUDOH[LVWHQFH7KHUHIRUH 3DXOFUHDWHVWKHH[SUHVVLRQsw`ma pneumatikovn´VSLULWXDOERG\µXVLQJsw`ma ´ERG\µ IRUWKHFRQWLQXLW\DQGpneumatikovn´VSLULWXDOµ IRUWKHGLVFRQWLQXLW\ IRUWKHQHZQHVV&RU :LHOGLQJWKLVPHWDSKRUXQGHUVWDQGDEOHWRERWK -HZV DQG *UHHNV KH FRPSDUHV RXU SUHVHQW VXIIHULQJ DQG RXU IXWXUH JORULRXV VHOIWRWKHGHVWLQ\RIDVHHGVRZQSK\VLFDOO\EXWUHERUQVSLULWXDOO\DFFRUGLQJ WRDQFLHQWVWDQGDUGVDQGEHOLHIV:HQRWRQO\ORRNOLNHWKHULVHQ&KULVWEXWDOVR SDUWLFLSDWHLQ&KULVW·VH[LVWHQFH´-XVWDVZHKDYHERUQHWKHLPDJHRIWKHPDQ RIGXVWZHZLOODOVREHDUWKHLPDJHRIWKHPDQRIKHDYHQµ&RU ´)RU WKLVSHULVKDEOHERG\PXVWSXWRQLPSHULVKDELOLW\DQGWKLVPRUWDOERG\PXVWSXW RQLPPRUWDOLW\µ&RU -HVXV ,IZHVHDUFKIRU-HVXV·YLHZRQWKLVPDWWHUXVLQJD*UHHNFRQFRUGDQFHDQGWKH WHUPyuchv ´VRXOµ´OLIHµRU´SHUVRQµ ZHÀQGLQSDUWLFXODUDUHIHUHQFHWR WKHPRVWLPSRUWDQWVD\LQJUHJDUGLQJRXUWRSLFIRULWSUHVXPHVWKHVXUYLYDORI WKHSHUVRQLQRQHZD\RUDQRWKHUDIWHUGHDWKLWXQGHUVFRUHVWKHLPSRUWDQFHRI WKH´VRXOµDORQJZLWKWKHUHDOLW\RIWKH´ERG\µLWJLYHVVWUHQJWKDQGKRSHWRDOO 2Q-HVXV·GHDWKDQGUHVXUUHFWLRQDVDVDYLQJHYHQWUHFHLYHGE\IDLWKVHH5XGROI%XOWPDQQ 7KHRORJLHGHV1HXHQ7HVWDPHQWVHG2WWR0HUNWKHG8QL7DVFKHQEFKHU7ELQJHQ0RKU SS²2QWKHSDUDOOHOVEHWZHHQ-HVXV·UHVXUUHFWLRQDQGWKHEHOLHYHUV·UHVXUUHFWLRQ VHH5RP²%UHQGDQ%\UQH5RPDQV63&ROOHJHYLOOH0LQQ/LWXUJLFDO3UHVV ² +HUHLQQXFHZHÀQGDOUHDG\WKHIXWXUHGLVWLQFWLRQEHWZHHQLPDJRDQGVLPLOLWXGRIRUWRGD\ KXPDQEHLQJVORRNOLNH$GDPDQG(YHERUQIURPHDUWKQDWXUDODQGPRUWDOLQWKHLPDJHRI*RG LPDJR EXWDV&KULVWLDQVWKH\VKDOOEHDVVLPLODWHGWR&KULVWWKHODVW$GDPZKRFDPHQRWIURPHDUWK EXWIURPKHDYHQLQVLPLODULW\ZLWK*RGVLPLOLWXGRVHH&RU̼ 6HH)UDQoRLV$OWHUPDWK 'XFRUSVSV\FKLTXHDXFRUSVVSLULWXHO,QWHUSUpWDWLRQGH&RU²SDUOHVDXWHXUVFKUpWLHQV GHVTXDWUHSUHPLHUVVLqFOHV%*%(7ELQJHQ0RKU6LHEHFN 2Q &RU VHH :ROIJDQJ 6FKUDJH 'HU HUVWH %ULHI DQ GLH .RULQWKHU .RU ² (..17'VVHOGRUI%HQ]LJHU1HXNLUFKHQ9OX\Q1HXNLUFKHQHU9HUODJ :KHQ-HVXVDFFRUGLQJWR0DUNVD\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 0DUN³DVLWLVIRUPXODWHGZLWKWKHVRWHULRORJLFDODOOXVLRQWRDUDQVRP³LVPRUHOLNHO\WKH H[SUHVVLRQRIWKHÀUVWFRPPXQLW\WKDQZRUGVVSRNHQE\WKHKLVWRULFDO-HVXV6HHDOVR/XNH $FWVDQG+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\EXWFDQQRWNLOOWKHVRXOUDWKHUIHDUKLPZKRFDQGHVWUR\ERWKVRXODQG ERG\LQKHOOµ0DWW +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]LJHU1HXNLUFKHQ9OX\Q1HXNLUFKHQHU9HUODJ ²2QHVKRXOGUHPHPEHU WKHSDUDOOHOWRWKHVD\LQJLQ0DFFE²´:LWKDOORXUKHDUWVOHWXVFRQVHFUDWHRXUVHOYHV XQWR*RGZKRJDYHXVRXUVRXOVDQGOHWXVH[SHQGRXUERGLHVIRUWKHFXVWRGLDQVKLSRIWKH/DZ /HWXVKDYHQRIHDURIKLPZKRWKLQNVKHNLOOV*UHDWLVWKHRUGHDODQGSHULORIWKHVRXOWKDWOLHV LQZDLWLQHWHUQDOWRUPHQWIRUWKRVHZKRWUDQVJUHVVWKHFRPPDQGPHQWRI*RGµ+$QGHUVRQ´ 0DFFDEHHV$1HZ7UDQVODWLRQDQG,QWURGXFWLRQµLQ7KH2OG7HVWDPHQW3VHXGHSLJUDSKDHG-DPHV +&KDUOHVZRUWKYROV/RQGRQ'DUWRQ/RQJPDQ 7RGG² ,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$UHQGW 3LHUUH +DGRW DQG 3HWHU%URZQ",ZRXOGOLNHWRXVHWKLVLPSUHVVLYHDPRXQWRIUHVHDUFKÀUVWDV DQLQYLWDWLRQWRXQGHUVFRUHKXPDQUHVSRQVLELOLW\LQWKLVOLIHDQGLQWKLVZRUOG,Q GRLQJVR,LQWURGXFHDQH[SUHVVLRQWKDWWKHRORJLDQVKDYHFUHDWHG´HVFKDWRORJLFDO UHVHUYDWLRQµ7RXQGHUVWDQGWKLVQRWLRQLWLVQHFHVVDU\WRORRNDW3DXO·VHSLVWOH WRWKH5RPDQV:KLOH3DXOVD\VLQ5RPDQVWKDWZHKDYHEHHQFUXFLÀHGZLWK -HVXV&KULVWKHGRHVQRWGDUHVD\WKDWZHKDYHEHHQUDLVHGDJDLQZLWKKLP WRVKDPHDQGHYHUODVWLQJFRQWHPSWµ'DQ 7KLVHVFKDWRORJLFDOSHUVSHFWLYHLVSUHVHQWDVZHOOLQ WKH6\QRSWLF*RVSHOVUHPHPEHUWKHJUHDWSLFWXUHRIWKHVKHHSDQGWKHJRDWV0DWW² MXVWDV LWLVLQWKH*RVSHORI-RKQ´'RQRWEHDVWRQLVKHGDWWKLVIRUWKHKRXULVFRPLQJZKHQDOOZKRDUH LQWKHJUDYHVZLOOKHDUKLVYRLFHDQGZLOOFRPHRXW³WKRVHZKRKDYHGRQHJRRGWRWKHUHVXUUHFWLRQ RIOLIHDQGWKRVHZKRKDYHGRQHHYLOWRWKHUHVXUUHFWLRQRIFRQGHPQDWLRQµ-RKQ² 6HH$ULVWRWOH2QWKH6RXO3DUYD1DWXUDOLD2Q%UHDWKHG:DOWHU6+HWW$ULVWRWOH/&/ UHYHG&DPEULGJH+DUYDUG8QLYHUVLW\3UHVV 5HQp 'HVFDUWHV 0pGLWDWLRQV WRXFKDQW OD SUHPLqUH SKLORVRSKLH PDLQO\ WKH VHFRQG DQG WKH VL[WKPHGLWDWLRQVVHHDOVRWKHIRXUWKSDUWRI'HVFDUWHV·V'LVFRXUVGHODPpWKRGHVHH0DUWLQ7KH &RULQWKLDQ%RG\² 0DXULFH0HUOHDX3RQW\3KpQRPpQRORJLHGHODSHUFHSWLRQLGHP/·XQLRQGHO·kPHHWGXFRUSV FKH]0DOHEUDQFKH%LUDQHW%HUJVRQ1RWHVSULVHVDXFRXUVGH0DXULFH0HUOHDX3RQW\HG-HDQ 'HSUXQUHYHG%LEOLRWKqTXHG·KLVWRLUHGHODSKLORVRSKLH3DULV9ULQ 6HH DOVR *UHJRU\ - 5LOH\ 5HVXUUHFWLRQ 5HFRQVLGHUHG 7KRPDV DQG -RKQ LQ &RQWURYHUV\ 0LQQHDSROLV0LQQ)RUWUHVV ´6RFUDWHVIHOWLWKLVGLYLQHPLVVLRQWRSHUVXDGHKLVIHOORZ $WKHQLDQVWRFRQFHQWUDWHWKHLUHIIRUWVRQWKHFXOWLYDWLRQRIWKHJRRGRIWKHVRXORYHUDJDLQVWWKDW RIWKHERG\µ 0LFKHO)RXFDXOW/HVRXFLGHVRLYRORI+LVWRLUHGHODVH[XDOLWp%LEOLRWKqTXHGHVKLVWRLUHV 3DULV*DOOLPDUG +DQQDK$UHQGW9LWDDFWLYDRGHU9RPWlWLJHQ/HEHQGHG0XQLFK3LSHU 3LHUUH +DGRW ([HUFLFHV VSLULWXHOV HW SKLORVRSKLH DQWLTXH SUpIDFH G·$UQROG , 'DYLGVRQ %LEOLRWKqTXH GH O·pYROXWLRQ GH O·KXPDQLWp G HG 3DULV $OELQ 0LFKHO 3HWHU %URZQ 7KH %RG\ DQG 6RFLHW\ 0HQ :RPHQ DQG 6H[XDO 5HQXQFLDWLRQ LQ (DUO\ &KULVWLDQLW\ 7ZHQWLHWK DQQLYHUVDU\HGLWLRQZLWKDQHZLQWURGXFWLRQ1HZKHZURWH@WKHVLQVRIHDFKRQHRI WKHPµeno~ ekastou autwn ta~ amartia~ &RGH[(JEHUWLRIIHUVDQDOWHUQDWLYH GHSLFWLQJ-HVXVEHQGLQJGRZQDQGLQVFULELQJ´HDUWKDFFXVHVHDUWKµWHUUDWHUUDP DFFXVDW LQWKHJURXQGÀJ DIHDWXUHWKDWDOVRDSSHDUVLQWKHLOOXPLQDWHGHOHYHQWK FHQWXU\*RVSHO%RRNRI+LWGDRI0DVFKHGHÀJ DQGDQLQWKFHQWXU\JORVVD &RGH[6DQJDOHQVLV3HUKDSVWKHFRPSLOHURIWKHJORVVDDQGWKHLOOXPLQDWRUV RI(JEHUWLDQGWKH*RVSHO%RRNRI+LWGDZHUHLQVSLUHGE\$PEURVH·VHDUOLHUYLHZ RUSHUKDSVWKH\ZHUHSDUDSKUDVLQJDVWDWHPHQWPDGHE\$XJXVWLQH,QHLWKHUFDVH (SLVWOH´6FULEHEDWDXWHPLQWHUUDGLJLWRTXROHJHPVFULSVHUDW6HFXQGRDXWHPVFULSVLW XWJHPLQRWHVWDPHQWR,XGDHRVVFLDVHVVHGDPQDWRVµWUDQV0DU\0HOFKLRU%H\HQND&6(/ )& (SLVWOH´4XLGVFULEHEDWQLVLLOOXGSURSKHWLFXP7HUUDWHUUDVFULEHKRVYLURVDEGLFDWRV TXRGGH,HFKRQLDOHFWXPHVWLQ+LHUHPLDSURSKHWD"µWUDQV%H\HQND&6(/²)& TXRWDWLRQVRIVFULSWXUHDUHLWDOLFL]HGLQWKHFULWLFDOHGLWLRQV (SLVWOH´&XP,XGDHLLQWHUSHOODQWLQWHUUDVFULEXQWXUQRPLQD,XGDHRUXPFXPDGHXQW &KULVWLDQLQRQVFULEXQWXULQWHUUDÀGHOLXPQRPLQDVHGLQFDHOR,QWHUUDDXWHPVFULEXQWXUDEGLFDWL DSDWUHSURSULRTXLSDWUHPWHPSWDQWHWFRQWXPHOLXVLUURJDQWDXFWRULVDOXWLVµWUDQV%H\HQND&6(/ )& &RPSDUH-HUHPLDK´2PQHVTXLWHGHUHOLTXHUXQWFRQIXQGHQWXUUHFHGHQWHV LQWHUUDVFULEHQWXUµ )RU IXUWKHU GLVFXVVLRQ RI WKH IRUPV RI WKLV YDULDQW LQ ODWHU 066 VHH 7RPP\ :DVVHUPDQ ´7KH3DWPRV)DPLO\RI1HZ7HVWDPHQW 066DQG,WV$OOLHVLQWKH3HULFRSHRIWKH$GXOWHUHVVDQG %H\RQGµ7&$-RXUQDORI%LEOLFDO7H[WXDO&ULWLFLVP 2QOLQHKWWSSXUORUJ7&YRO :DVVHUPDQ:DVVHUPDQKWPO 7ULHU&RGH[(JEHUWL5HLFKHQDX 06IROY 'DUPVWDGW/DQGHVXQG+RFKVFKXOELEOLRWKHN06IROU)RUGLVFXVVLRQDQGSODWHVVHH -HUHPLD.UDXV:RUDXIJUQGHWXQVHU*ODXEH"-HVXVYRQ1D]DUHWLP6SLHJHOGHV+LWGD(YDQJHOLDUV )UHLEXUJLP%UHLVJDX+HUGHU 6DQNW*DOOHQ6WLIWVELEOLRWKHN6% IROVHHDOVR.DUOVUXKH%/%6W3HWHUSHUJ DQG:HZRXOGOLNHWRWKDQN$QLQD%DXPDQQIRUKHUDVVLVWDQFHZLWK&RG6DQJ 3UHDFKLQJRQ3VDOPWKHELVKRSRI+LSSRDOVRLQYRNHG-HVXV·ZULWLQJWKLVWLPHWRUHPLQG NLQJVWKDWZKHQWKH\MXGJHSHRSOHRIWKHHDUWK´HDUWKLWVHOILVMXGJLQJWKHHDUWKµTXLDWHUUDLXGLFDW WHUUDP $VPHUHPRUWDOVNLQJVWRRZLOOEHMXGJHG6HUP²&&6/² )UDQ] 5RQLJDQG3DXO%ORFKLGHQWLI\WKLVVHUPRQDVWKHOLNHO\VRXUFHRIWKHJORVV)UDQ]5RQLJ&RGH[ (JEHUWL'DV3HULNRSHQEXFKGHV(U]ELVFKRIV(JEHUWYRQ7ULHU² 7UHYHULV6DFUD7ULHU 6SHH9HUODJ DQG3DXO%ORFK´(KHEUHFKHULQµ/H[LNRQGHU&KULVWOLFKHQ,NRQRJUDSKLHHG (QJHOEHUW.LUVFKEDXPHWDOYROV)UHLEHUJLP%UHLVJDX+HUGHU² ²%UXFH 0 0HW]JHU GLVDJUHHG KRZHYHU QRWLQJ WKDW WKHUH LV QR ZRUGIRUZRUG FRUUHVSRQGHQFH EHWZHHQ $XJXVWLQH·VVHUPRQDQGWKHSKUDVHDVIRXQGLQ(JEHUWLDQG+LWGD·V*RVSHO%RRN5HYLHZRI/H[LNRQ
-(11,)(5.1867$1'7200WKH SDVVDJH@LVHLWKHUQRWIRXQGRULWLVREHOL]HGµajkribevs in ajntigravfoi~ h] oujk eu|rhtai h] wjbevlistai WUDQVODWLRQRXURZQ3*G )RUH[DPSOHVRIDQRQ\PRXVVFKROLDTXHVWLRQLQJWKHRULJLQDQGLQWHJULW\RIWKHSDVVDJHVHH %HFNHU-HVXVXQGGLH(KHEUHFKHULQ %HFNHU-HVXVXQGGLH(KHEUHFKHULQ²0DXULFH$5RELQVRQ´3UHOLPLQDU\2EVHUYDWLRQV 5HJDUGLQJ WKH 3HULFRSH $GXOWHUDH %DVHG XSRQ )UHVK &ROODWLRQV RI 1HDUO\ $OO &RQWLQXRXV7H[W 0DQXVFULSWVDQG$OO/HFWLRQDU\0DQXVFULSWV&RQWDLQLQJWKH3DVVDJHµ)LO1HRW ² (XVHELXV+LVWHFFO6& *UHHNWH[WHGLWHGE\ePLOHGH6WU\FNHU/DIRUPHODSOXVDQFLHQQHGX3URWpYDQJLOHGH-DFTXHV 5HFKHUFKHVVXUOHSDS\UXV%RGPHUDYHFXQHpGLWLRQFULWLTXHGXWH[WHJUHFHWXQHWUDGXFWLRQDQQRWpH 6XEVLGLDKDJLRJUDSKLFD%UXVVHOV6RFLpWpGHV%ROODQGLVWHV (QJOLVKWUDQVODWLRQE\-DPHV .HLWK(OOLRWW7KH$SRFU\SKDO1HZ7HVWDPHQW$&ROOHFWLRQRI$SRFU\SKDO&KULVWLDQ/LWHUDWXUHLQ DQ(QJOLVK7UDQVODWLRQ%DVHGRQ05-DPHV2[IRUG&ODUHQGRQ3UHVV ²2QWKHGDWH RIWKHZRUNVHH3LHWHU$YDQ6WHPSYRRUW´7KH3URWHYDQJHOLXP-DFRELWKH6RXUFHVRI,WV7KHPH DQG6W\OHDQG7KHLU%HDULQJRQ,WV'DWHµLQ6WXGLD(YDQJHOLFD9ROXPHV,,²,,,3DSHUV3UHVHQWHGWR WKH6HFRQG,QWHUQDWLRQDO&RQIHUHQFHRQ1HZ7HVWDPHQW6WXGLHV+HOGDW&KULVW&KXUFK2[IRUG HG)UDQN/HVOLH&URVV7H[WHXQG8QWHUVXFKXQJHQ]XU*HVFKLFKWHGHU$OWFKULVWOLFKHQ/LWHUDWXU %HUOLQ$NDGHPLH ²(GRXDUG&RWKHQHW´/H3URWpYDQJLOHGH-DFTXHV2ULJLQHJHQUH HWVLJQLÀFDWLRQG·XQSUHPLHUPLGUDVK&KUpWLHQVXUOD1DWLYLWpGH0DULHµ$15:²2Q WKHSHULFRSHDGXOWHUDHWKH*RVSHORI-RKQDQGWKH3URWR*RVSHORI-DPHVVHH:LOOLDP/3HWHUVHQ ´OUDE EGW SE >KATA@KRINW -RKQ WKH 3URWHYDQJHOLXP ,DFREL DQG WKH +LVWRU\ RI WKH 3HULFRSH$GXOWHUDHµLQ6D\LQJVRI-HVXV&DQRQLFDODQG1RQ&DQRQLFDO(VVD\VLQ+RQRURI7MLW]H %DDUGDHG:LOOLDP/3HWHUVHQ-RKDQ69RVDQG+HQN-HQGH-RQJH/HLGHQ%ULOO ² 'LGDVFDOLD$SRVWRORUXP&6&2²(QJOLVKWUDQVODWLRQ&6&2 &RPSDUH8 SFZKLFKUHDGVtauthn euromen DW-RKQ 2ULJHQ +RPLOLHV RQ -HUHPLDK Moico;~ eij tovt e gegevnhtai h] moicaliv~ hJ ajpeilh; ouj gevenna, ouj pu`r aijwvnion, ajllav: livqoi~ liqobolhqhvsetai: Liqoboleivtw aujto;n pa`sa hJ sunagwghv.!! ΔErei` ajpelqw;n oJ ejn touvtoi~ euJreqei;~ moicov~, hJ ejn touvtoi~ euJreqei`sa moicaliv~:
-(11,)(5.1867$1'7200WKHIROORZLQJVWRU\@µOHDYHVWKHTXHVWLRQRSHQ 7KHSVHXGR$XJXVWLQLDQ4XHVWLRQHV9HWHULVHW1RYL7HVWDPHQWLUHDGVWKHVWRU\DV DFRQGHPQDWLRQRIWKH-HZVDQLQWHUSUHWDWLRQWKDWUHFHLYHGIXUWKHUHQGRUVHPHQWE\ $PEURVHDQGODWHU/DWLQIDWKHUVEXWWKLVZRUNGRHVQRWOLQNWKHLUFRQGHPQDWLRQWR -HVXV·ZULWLQJ3DFLDQRI%DUFHORQDOLVWHGWKHDGXOWHUHVVDVDQH[DPSOHRI&KULVW·V H[FHSWLRQDOPHUF\SODFLQJWKHHPSKDVLVRQ-HVXV·GHDOLQJVZLWKWKHZRPDQUDWKHU WKDQRQKLVRSSRQHQWVDQGWKHUHIRUHIDLOLQJWRPHQWLRQ-HVXV·ZULWWHQMXGJPHQW DJDLQVW WKHP +LODU\ RI 3RLWLHUV DOOXGHG WR WKH SDVVDJH LQ KLV FRPPHQWDU\ RQ 3VDOP FLWLQJ WKH VD\LQJ ´ZKRHYHU LV ZLWKRXW VLQµ EXW ZLWKRXW PHQWLRQ RI -HVXV·ZULWLQJ$SRVVLEOHDOOXVLRQLQDÀIWKRUVL[WKFHQWXU\3DFKRPLDQFDWHFKHVLV DOVRVWUHVVHVWKHFRPPHQW´ZKRHYHULVZLWKRXWVLQµUDLVLQJ&KULVW·VPHUF\DVD UDWLRQDOHIRUWKHGHFLVLRQWRFRUUHFWUDWKHUWKDQH[SHOZD\ZDUGPRQNVRQFHDJDLQ ZULWLQJLVRYHUORRNHG:KHQWKHZULWLQJLVPHQWLRQHGKRZHYHUDQH[SODQDWLRQ IRUWKLVQDUUDWLYHGHWDLORIWHQDFFRPSDQLHVWKHGLVFXVVLRQ ei[qe kai; ejpΔ ejmou` oJ lovgo~ ejrei`, oJ lao;~ livqoi~ me e[balle kai mh; tethrhmevno~ h[mhn eij~ to; aijwvnion pu`r 6& 7KRXJK QRW ZLGHO\ DFFHSWHG 8OULFK %HFNHU VXJJHVWHG WKDW 2ULJHQ NQHZ WKH SHULFRSH DGXOWHUDH RQ WKH EDVLV RI WKLV SDVVDJH DQG DOVR KLV FRPPHQW WKDW WKH ODZ RI ,VUDHO´FDQQRWVWRQHWKHDGXOWHUHVVµQHFDGXOWHUDPODSLGDUH VLQFHWKH5RPDQDXWKRULWLHVDYHQJH WKHPVHOYHVRQWKHVHWKLQJV&RPP5RP 6HH%HFNHU-HVXVXQGGLH(KHEUHFKHULQ² (GLWHG ZLWK *HUPDQ WUDQVODWLRQ LQ 'LG\PRV GHU %OLQGH .RPPHQWDU ]XP (FFOHVLDVWHV 7XUD3DS\UXV 7HLO,9.RPP=X(FFO.DS²HG-RKDQQHV.UDPHUDQG%lUEHO.UHEEHU 3DS\URORJLVFKH7H[WHXQG$EKDQGOXQJHQ%RQQ5XGROI+DEHOW IROOLQHV² )RUIXUWKHUGLVFXVVLRQRI'LG\PXV·VLQWHUSUHWDWLRQVHH.QXVW´(DUO\&KULVWLDQ5H:ULWLQJµ² .UDPHUDQG.UHEEHULQWHUSUHW'LG\PXV·VFRPPHQWWKDWWKHVWRU\LVIRXQG´LQFHUWDLQJRVSHOVµ e[n tisin eujaggelivoi~ DVDUHIHUHQFHWR´FHUWDLQPDQXVFULSWVRI-RKQµ'LG\PRVGHU%OLQGH %DUW(KUPDQ´-HVXVDQGWKH$GXOWHUHVVµ176 ²DW²(KUPDQVXJJHVWVWKDW 'LG\PXVNQHZWKHVWRU\IURP-RKQDQGIURPDQRWKHUQRQFDQRQLFDOJRVSHOSUREDEO\WKH*RVSHO RI WKH +HEUHZV 'LHWHU /KUPDQQ ´'LH *HVFKLFKWH YRQ HLQHU 6QGHULQ XQG DQGHUH DSRNU\SKH -HVXVEHUOLHIHUXQJHQEHL'LG\PRVYRQ$OH[DQGULHQµ1RY7 ²DW²/KUPDQQ RQ WKH RWKHU KDQG LV FRQYLQFHG WKDW 'LG\PXV GLG QRW NQRZ WKH -RKDQQLQH YHUVLRQ RI WKH VWRU\ UDWKHU'LG\PXVLVKHUHFLWLQJDVWRU\NQRZQH[FOXVLYHO\IURPDQDSRFU\SKDOJRVSHOSUREDEO\WKH *RVSHORIWKH+HEUHZV 4XHVWLRQHV9HWHULVHW1RYL7HVWDPHQWL&6(/²)RUIXUWKHUGLVFXVVLRQRIWKH KLVWRU\RIWKLVGRFXPHQWVHH0DULH3LHUUH%XVVLqUHV´,QWURGXFWLRQWR$PEURVLDVWHUµLQ&RQWUHOHV 3DwHQV4XHVWLRQVXUO·$QFLHQHWOH1RXYHDX7HVWDPHQW HW6XUOH'HVWLQ4XHVWLRQVXUO·$QFLHQ HWOH1RXYHDX7HVWDPHQW 6&3DULV&HUI ² 3DFLDQRI%DUFHORQD$JDLQVWWKH1RYDWLDQV/HWWHU ´1ROLWHLQ(XDQJHOLROHJHUHTXRG SHSHUFHULW'RPLQXVHWLDPDGXOWHUDHFRQÀWHQWLTXDPQHPRGDPQDUDWµ6& +LODU\RI3RLWLHUV&RPPHQWDU\RQ3VDOP²6& 'UDJXHW)UDJPHQW3DFKRPLDQ.RLQRQLDHGDQGWUDQV$UPDQG9HLOOLX[YROV.DODPD]RR 0LFK &LVWHUFLDQ )RU GLVFXVVLRQ RI WKLV VRXUFH VHH 3KLOLS 5RXVVHDX 3DFKRPLXV 7KH0DNLQJRID&RPPXQLW\LQ)RXUWK&HQWXU\(J\SW%HUNHOH\&DOLI8QLYHUVLW\RI&DOLIRUQLD 3UHVV ²
+$59$5'7+(2/2*,&$/5(9,(:
Q:ULWLQJ/DWLQLQWKH*URXQG 7KRXJKDEVHQWIURPDPDMRULW\RIHDUO\*UHHNFRSLHVRIWKH*RVSHOVWKHSHULFRSH DGXOWHUDHGRHVDSSHDUZLWKLQWKHÀIWKFHQWXU\*UHHN/DWLQGLJORW&RGH[%H]DHDQG ZKHQLWGRHV-HVXVFOHDUO\ZULWHV+H´ZDVZULWLQJZLWKKLVÀQJHULQWKHJURXQGµ tw daktulw kategrafen ei~ thn ghnGLJLWRVXRVFULEHEDWLQWHUUDP WKH%H]DQ WH[WUHSRUWVDQGZKHQWKH´SULHVWVµFRQWLQXHGWRSUHVVKLPKHZURWHDVHFRQG WLPH RQFH DJDLQ ZLWK KLV ÀQJHU tw daktulw kategrafen ei~ thn ghn GLJLWR VXRVFULEHEDWLQWHUUDP $PEURVHRI0LODQNQHZWKHVHVDPHGHWDLOVLQWKHV -HVXV*RG´ZURWHRQWKHJURXQGZLWKWKHÀQJHUZLWKZKLFK+HKDGZULWWHQWKH ODZµVFULEHEDWDXWHPLQWHUUDGLJLWRTXROHJHPVFULSVHUDW DQDUUDWLYHIHDWXUH WKDW-HURPHDOVRPHQWLRQHGDIHZGHFDGHVODWHU%H\RQGQRWLQJWKHLPSRUWDQFHRI -HVXV·ÀQJHUDQGWKHIDFWWKDWKHZURWHWKH%H]DQWH[WRIIHUVQRIXUWKHUVXJJHVWLRQ UHJDUGLQJ WKH FRQWHQW DQG VLJQLÀFDQFH RI -HVXV· ZULWLQJ$PEURVH DQG -HURPH KRZHYHUVXSSO\DVHULHVRILQWHUSUHWLYHH[SDQVLRQVWKDWOLQN-HVXV·DFWLRQWR*RG·V MXGJPHQW$FFRUGLQJWR$PEURVH-HVXVZURWH´HDUWKHDUWKZULWHWKDWWKHVHPHQ KDYH EHHQ GLVRZQHGµ WHUUD WHUUD VFULEH KRV XLURV DEGLFDWRV D SDVVDJH WKDW UHIHUHQFHV -HUHPLDK ²$PEURVH IXUWKHU VXJJHVWV WKDW ´-HVXV LQFOLQHG KLVKHDGWRZULWHLQWKHJURXQGµ,HVXVLQFOLQDWRFDSLWHVFULEHEDWLQWHUUD WXUQLQJ KLVKHDGDZD\LQUHVSRQVHWRLQVXOWVWKURZQDWKLPE\WKH-HZV´:KHQWKH-HZV GHPDQGSD\PHQWµ$PEURVHFRQWLQXHV´WKHLUQDPHVDUHZULWWHQLQWKHJURXQGµ %\FRQWUDVW´WKHQDPHVRI&KULVWLDQVDUHZULWWHQLQKHDYHQµ-HURPH·VFRPPHQWV DUHVLPLODUEXWPRUHVXFFLQFW-HVXVZURWH´WKH\WKDWGHSDUWIURP\RXVKDOOEH ZULWWHQRQWKHHDUWKµUHOLTXHQWHVDXWHPWHVXSHUWHUUDPVFULEDQWXU DSDUDSKUDVH RI-HUHPLDK 3HWHU &KU\VRORJRV D ÀIWKFHQWXU\ ELVKRS RI 5DYHQQD VHHPV QRW WR KDYH EHHQDZDUHRIWKHVHLQWHUSUHWLYHWUDGLWLRQVGHVSLWHKLVJHRJUDSKLFDOSUR[LPLW\WR
(SLVWOHWUDQV%H\HQND&6(/)& ´%RZLQJGRZQ-HVXVZURWHZLWKKLVÀQJHUµDW,HVXVLQFOLQXVGLJLWRVFULEHEDWLQWHUUD3HODJ &&6/ (SLVWOH $PEURVHDSSHDUVWREHSDUDSKUDVLQJ7KH9XOJDWHWH[WUHDGV´7HUUDWHUUDWHUUDDXGLVHUPRQHP 'RPLQLKDHFGLFLW'RPLQXVVFULEHYLUXPLVWXPVWHULOHPYLUXPTXLLQGLHEXVVXLVQRQSURVSHUDELWXUµ (DUWKHDUWKHDUWKKHDUWKHZRUGRIWKH/RUG7KXVWKH/RUGVD\V´:ULWHWKLVPDQVWHULOHDPDQ ZKRVKDOOQRWSURVSHUµ (SLVWOH² (SLVWOH ´&XP ,XGDHL LQWHUSHOODQW LQ WHUUD VFULEXQWXU QRPLQD ,XGDHRUXP FXP DGHXQW &KULVWLDQLQRQVFULEXQWXULQWHUUDÀGHOLXPQRPLQDVHGLQFDHOR,QWHUUDDXWHPVFULEXQWXUDEGLFDWL DSDWUHSURSULRTXLSDWUHPWHPSWDQWHWFRQWXPHOLDVLUURJDQWDXFWRULVDOXWLV&XPLQWHUSHOODQW,XGDH LQFOLQDWFDSXW,HVXVHWTXLDQRQKDEHWXELUHFOLQHWFDSXWVXXPLWHUXPHULJLWTXDVLGLWXUXVVHQWHQWLDP HWDLW4XLVLQHSHFFDWRHVWSULRUODSLGHWHDP(WLWHUXPLQFOLQDWRFDSLWHVFULEHEDWLQWHUUDWUDQV %H\HQND&6(/)& $W,HVXVLQFOLQXVGLJLWRVFULEHEDWLQWHUUDHRUXPXLGHOLFHWTXLDFFXVDEDQWHWRPQLXPSHFFDWD PRUWDOLXPVHFXQGXPTXRGVFULSWXPHVWLQ3URSKHWD5HOLTXHQWHVDXWHPWHVXSHUWHUUDPVFULEDQWXU &&6/
-(11,)(5.1867$1'7200-HVXV@SUHIHUUHGEUHWKUHQWRZULWHIRUJLYHQHVV LQWKHVDQGUDWKHUWKDQWRXWWHUDFRQGHPQDWLRQDERXWWKHÁHVKµHWPDOXLWIUDWUHV LQSXOXHUHVFULEHUHXHQLDPQHGDUHWLQFDUQHVHQWHQWLDP 7RWKLVELVKRSWKHQ -HVXV· ZULWLQJ UHSUHVHQWV QRW MXGJPHQW EXW IRUEHDUDQFH D GHOD\ RIIHUHG WR WKH ZRPDQ6\QDJRJXHVRWKDWVKHPLJKWUHSHQWRIKHUZLFNHGZD\VDSRLQWKHOLQNV WR3DXO·VLQMXQFWLRQUHJDUGLQJWKHIUHHGRPIURPWKHODZDWWDLQHGE\DZLGRZXSRQ KHUKXVEDQG·VGHDWK5RPDQV 7KHIDLWKIXODUHQRORQJHUERXQGE\WKHODZ 3HWHUDUJXHVEXWXUJHGLQVWHDGWRMRLQLQDSXUHXQLRQZLWK&KULVW $VWKHFRPELQHGZLWQHVVRI&RGH[%H]DHDQGWKHVH/DWLQZULWHUVGHPRQVWUDWHV E\ WKH ODWH IRXUWK FHQWXU\ -HVXV· ZULWLQJ KDG EHFRPH DQ HVWDEOLVKHG IHDWXUH RI -RKDQQLQHYHUVLRQVRIWKHSHULFRSHSDUWLFXODUO\DVLWZDVSUHVHUYHGLQ/DWLQDQG SUREDEO\LQ*UHHNDVZHOO7KH/DWLQIDWKHUV$PEURVHDQG3DFLDQGLVSOD\HGD SDUWLFXODULQWHUHVWLQ-HVXV·SRVWXUHDQLQWHUHVWWKDWPD\DOVREHUHÁHFWHGLQVRPH 2OG/DWLQZLWQHVVHV&RGLFHV&ROEHUWLQXVF 3DODWLQXVH DQG&RGH[&RUEHLHQVLV II DOVRDGGWKDW-HVXV´ERZHGKLVKHDGµSHUKDSVKDUPRQL]LQJWKHYHUVHZLWK D SKUDVH IURP -RKQ ZKLFK UHDGV ´LQFOLQDWR FDSLWHµ +HUH -HVXV ERZV KLVKHDGRQWKHFURVVDVKHJLYHVXSKLVVSLULWWKXVE\OLQNLQJ-HVXV·SRVWXUHRQ WKH FURVV ZLWK KLV SRVWXUH ZKHQ FRQIURQWLQJ WKH ZRPDQ$PEURVH 3DFLDQ DQG WKHVH2OG/DWLQZLWQHVVHVPD\VHHNWRUHFDOO-HVXV·DWWLWXGHRIPHUF\WRZDUGDOO VLQQHUV7KH2OG/DWLQZLWQHVV&RGH[$XUHXVDXU WKHWH[WRI&RGH[)XOGHQVLV
6HUPRQWUDQV*QDVV&&6/D)& 6HUPRQ :LWK%H]DHDVRXURQO\ZLWQHVVWKLVFRQFOXVLRQFDQQRWEHFHUWDLQZKHQLWFRPHVWRWKH*UHHN )RUIXUWKHUGLVFXVVLRQVHH/KUPDQQ´'LH*HVFKLFKWHYRQHLQHU6QGHULQµ(KUPDQ´-HVXVDQG WKH$GXOWHUHVVµ3HWHUVHQ´OUDE EGW SE >KATA@KRINW.µ F3DULV%LEOLRWKqTXHQDWLRQDOHODW&ULWLFDOHGLWLRQE\+HLQULFK-RVHI9RJHOV(YDQJHOLXP &ROEHUWLQXP&RGH[ODWGHU%LEOLRWKqTXHQDWLRQDOH]X3DULVYROV%RQQ3HWHU+DQVWHLQ IRUDIXOOGLVFXVVLRQRIWKHSHULFRSHDGXOWHUDHDVLWDSSHDUVLQWKLV 06VHH² H7UHQWR0XVHR1D]LRQDOH&DVWHOORGHO%XRQ&RQVLJOLRVQ II3DULV%LEOLRWKqTXHQDWLRQDOHODW&ULWLFDOHGLWLRQE\(GJDU6%XFKDQDQ7KH)RXU *RVSHOVIURPWKH&RGH[&RUEHLHQVLV7RJHWKHUZLWK)UDJPHQWVRIWKH&DWKROLF(SLVWOHVRIWKH$FWV DQG RI WKH$SRFDO\SVH IURP WKH )OHXU\ 3DOLPSVHVW 2[IRUG &ODUHQGRQ 3UHVV ² ZLWK LQWURGXFWLRQ E\ (GJDU 6 %XFKDQDQ ´7KH &RGH[ &RUEHLHQVLVµ -RXUQDO RI 7KHRORJLFDO 6WXGLHV ² ² +XJK $ * +RXJKWRQ $XJXVWLQH·V 7H[W RI -RKQ 3DWULVWLF &LWDWLRQV DQG /DWLQ *RVSHO 0DQXVFULSWV2[IRUG(DUO\&KULVWLDQ6WXGLHV2[IRUG2[IRUG8QLYHUVLW\3UHVV ² ²:HZRXOGOLNHWRRIIHURXUVLQFHUHVWWKDQNVWR+XJK+RXJKWRQRIWKH,76((IRUKLVYDOXDEOH DVVLVWDQFHZLWK$XJXVWLQH·VFLWDWLRQVRIWKHSDVVDJHDQGDOVRZLWKWKH2OG/DWLQYHUVLRQVRI-RKQ $V2·/RXJKOLQREVHUYHV´$PEURVHVHHV-HVXV·DFWLRQRILQFOLQLQJ¶KLVKHDG·DQLPSOLFDWLRQ
+$59$5'7+(2/2*,&$/5(9,(:
DQGWKHPDMRULW\RIWKH9XOJDWHWUDGLWLRQKRZHYHUUHDG´LQFOLQDQVVHGHRUVXPµ DWUDQVODWLRQWKDWEHWWHUUHÁHFWVWKH*UHHNkatakuvya~&RGH[*DWLDQXV%WJDW ZKLFKSUHVHQWVDPL[HG9XOJDWH2OG/DWLQWH[WKDVWKHXQLTXHFRQÁDWHGUHDGLQJ ´LQFOLQDWHFDSLWHGHRUVRPµ,WVKRXOGDOVREHQRWHGWKDW&RGH[3DODWLQXVWUDQVODWHV ajnevkuyenajnakuvya~Y DV´DGOHEDXLWDGOHXDVVHWFDSXGµZKLFKLPSOLHV WKDW WKHUHIHUHQFHWRWKHKHDGLQ/DWLQPD\UHÁHFWWUDQVODWLRQWHFKQLTXHUDWKHU WKDQKDUPRQL]DWLRQ ,QWKHHDUO\ÀIWKFHQWXU\$XJXVWLQHWRRNWKHOHDGIURP$PEURVHDQG-HURPH E\ RIIHULQJ D QXPEHU RI GLYHUVH VXJJHVWLRQV UHJDUGLQJ -HVXV· ZULWLQJ ,Q KLV FRPPHQWDU\RQ3VDOPVIRUH[DPSOHKHFODLPHGWKDW-HVXVVWRRSHGMXVWDV´*RG KDGVWRRSHGWRPDQZKRKDGEHHQWROG¶(DUWKWKRXDUWDQGWRHDUWKWKRXVKDOWJR·µ ,OOHDXWHPLQFOLQDXHUDWVHDGWHUUDPLGHVW'HXVDGKRPLQHPFXLGLFWXPHVW 7HUUDHVHWLQWHUUDPLELV ,Q$QVZHUWRDQ(QHP\RIWKH/DZDQGWKH3URSKHWV KHVXJJHVWHGWKDWWKH/RUG·VZULWLQJVKRZVWKDW´WKRVHZKRDEDQGRQKLPDUHZULWWHQ LQWKHHDUWKµDQLQWHUSUHWDWLRQKHVXSSRUWHGRQWKHEDVLVRI-HUHPLDK´¶/HW DOOWKRVHZKRDEDQGRQ\RXEHFRQIXVHGDVWKH\ZLWKGUDZOHWWKHPEHZULWWHQ XSRQWKHHDUWK·µ4XLVHQLPFRJLWDWTXRPRGRDGPHPRULDPGHLVFULEDQWXULQFDHOLV VHTXHQWHVGRPLQXPGHUHOLQTXHQWHVDXWHPGRPLQXPVFULEDQWXULQWHUUDGHTXLEXV SURSKHWD,HUHPLDVGLFLW8QLXHUVLTXLGHUHOLQTXXQWWHFRQIXQGDQWXUUHFHQGHQWHV VXSHU WHUUDP VFULEDQWXU $XJXVWLQH DOVR PHQWLRQV -HVXV· SRVWXUH QRWLQJ WKDW WKH/RUG´LQFOLQHGKLVKHDGµLQVHYHUDORIKLVZULWLQJV$GGLQJKLVRZQXQLTXH YLHZSRLQWRQWKHPDWWHUKHREVHUYHG´WKHODZZDVZULWWHQE\WKHÀQJHURI*RGEXW EHFDXVH>WKH-HZV@ZHUHKDUGPHQLWZDVZULWWHQRQVWRQHµ%\FRQWUDVW-HVXVZURWH
RI KLV KDYLQJ WR ORRN XS DW WKH ZRPDQ LQ Y DV VDFUDPHQWDO RI KLV DWWLWXGH WR VLQQHUV ¶ZKHQ -HVXVLQFOLQHVKLVKHDGKHGRHVVRWKDWKHPLJKWUDLVHXSWKRVHZKRKDYHEHHQIDOOHQ·(SLVW µ 6HH7KRPDV 2·/RXJKOLQ ´$:RPDQ·V 3OLJKW DQG WKH:HVWHUQ )DWKHUVµ LQ &LSKHUV LQ WKH 6DQG ,QWHUSUHWDWLRQVRIWKH:RPDQ7DNHQLQ$GXOWHU\-RKQ² HG/DUU\-.UHLW]HUDQG'HERUDK : 5RRNH 6KHIÀHOG 6KHIÀHOG$FDGHPLF ² DW 2·/RXJKOLQ KRZHYHU GRHV QRW QRWHWKHSRVVLEOHFRQQHFWLRQWR-RKQ )XOGD/DQGHVELEOLRWKHN 06%RQLI&ULWLFDOHGLWLRQRI&RGH[)XOGHQVLVE\(UQVW5DQNH &RGH[ )XOGHQVLV 1RYXP 7HPVWDPHQWXP /DWLQH ,QWHUSUHWH +HULURQ\PR ([ PDQXVFULSWR 9LFWRULV &DSXDQL0DUEXUJ6XPWLEXV1*(OZHUWL%LEOLRSRODH$FDGHPLFL >FDSLWXOD@>WH[W@ 2QWKHODFNRIDJUHHPHQWEHWZHHQWKHFDSLWXODDQGWKHUHVWRIWKH06VHH7KHRGRUH=DKQ7DWLDQ·V 'LDWHVVDURQ)*1.(UODQJHQ ²)RUIXUWKHUGLVFXVVLRQVHH:LOOLDP3HWHUVHQ7DWLDQ·V 'LDWHVVDURQ,WV&UHDWLRQ'LVVHPLQDWLRQ6LJQLÀFDQFHDQG+LVWRU\LQ6FKRODUVKLS6XSSOHPHQWV WR9LJLOLDH&KULVWLDQDH/HLGHQ%ULOO ²² %WJDW%RQLIDWLXV)LVFKHU·VVLJOXP%WLQGLFDWHVWKDW&RGH[*DWLDQXVLVQRWWREHWUHDWHGDV DQ2OG/DWLQZLWQHVV2QWKHRWKHUKDQGLWDSSHDUVLQWKH9HWXV/DWLQDOLVWZLWKQXPEHUZKHUH LWLVGHVFULEHGDV´0LVFKWH[WGHULULVFKHQ)DPLOLH'(/45JHK|UWµ5RJHU*U\VRQ$OWODWHLQLVFKH +DQGVFKULIWHQ)UHLEXUJ+HUGHU (QDUUDW3VWUDQV+HEJLQDQG&RUULJDQ&&6/$&: /HJ&&6/ )DXVW´LQFOLQDWHFDSLWHµ(QQDUDW3V´LQFOLQDWRFDSLWHµDQG´UXUVXP LQFOLQDWRFDSLWHµ6HUPE´LQFOLQDXLWFDSXWHWFRHSLWGLJLWRVFULEHUHLQWHUUDPµ
-(11,)(5.1867$1'7200DVIROORZV@µ7KXVUHDGRQO\UDUHO\ RQWKHIHDVWGD\RIDVDLQWUDWKHUWKDQDVSDUWRIDPDMRUVWDWLRQDOIHDVWDWHLWKHU &RQVWDQWLQRSOHRU-HUXVDOHPWKHSHULFRSHIDGHGLQWRUHODWLYHREOLYLRQZKHWKHURU QRWWH[WVRI-RKQSUHVHUYLQJWKHVWRU\ZHUHDYDLODEOHWRUHDGHUVDQGVFULEHV %HJLQQLQJLQWKHHLJKWKFHQWXU\WKHIRUWXQHVRIWKHSHULFRSHDGXOWHUDHEHJDQ WRVKLIWLQ*UHHNDWOHDVWLQWHUPVRIPDQXVFULSWZLWQHVVHV2PLWWHGIURPWKHWZR WKLUGFHQWXU\SDS\ULWKDWFRXOGKDYHFRQWDLQHGLW∏DQG∏ DQGH[FOXGHGIURP DOOEXWRQH' RIWKHVL[IRXUWKWKURXJKHLJKWKFHQWXU\PDMXVFXOHZLWQHVVHVWR -RKQWKHVWRU\UHDSSHDUVLQWKUHHHLJKWKFHQWXU\PDMXVFXOHVEXWLQRQHRIWKHP &RGH[%DVLOLHQVLV( LWLVREHOL]HGHLWKHUDVDQLQGLFDWLRQRILWVGLVSXWHGVWDWXV DORQJWKHOLQHVRI$OH[DQGULDQWH[WFULWLFDOPDUNVRUDVDYLVXDODLGWRWKHUHDGHU ZKRZRXOGNQRZWRVNLSIURPWRZKHQUHDGLQJWKH3HQWHFRVWOHFWLRQ /LPLWLQJWKHGLVFXVVLRQWRHLJKWKWKURXJKWHQWKFHQWXU\PDMXVFXOHZLWQHVVHVZH GHWHFWWKHIROORZLQJUHVXOWV 0DQXVFULSW
'DWH
/ (
HLJKWKFHQW HLJKWKFHQW HLJKWKFHQW HLJKWKFHQW
)
QLQWKFHQW
2PLW
2PLWZLWK ,QFOXGH EODQN 2EHOL]HG VSDFH [ [
,QFOXGH
[² [² [
8QPDUW\URORJHHWGRX]HPpQRORJHVV\ULDTXHVHGDQGWUDQV)UDQoRLV1DX3DWURORJLD2ULHQWDOLV 0DUW\URORJHVHWPpQRORJHVRULHQWDX[²3DULV)LUPLQ'LGRW ,QWKH*UHHNUHWUDQVODWHGIURPWKH6\ULDFE\/HZLVDQG*LEVRQ066$DQG%UHDGΔEteleiwvqh to; eujaggevlion ΔIwavnnou eJllhnisti; ejn ΔEfevsw/. 06&UHDGV ΔEteleiwvsqh to; eujaggevlion ΔIwavnnou bohqeiva/ tou` cristou` /HZLVDQG*LEVRQ3DOHVWLQLDQ6\ULDF/HFWLRQDU\OY 7KH\H[SODLQWKDWWKH SHULFRSHDGXOWHUDH´ZDVDWRQHWLPHDSSHQGHGWR6W-RKQ·V*RVSHODIWHUWKHÀQDOFRORSKRQµDQG ´LQWKH*UHHNRU6\ULDF 06IURPZKLFKWKHOHVVRQVRIWKH3DOHVWLQLDQ/HFWLRQDU\ZHUHWDNHQWKH VHFWLRQZDVUHPRYHGWRWKHSODFHEHWZHHQFKDSWHUYLLDQGYLLL ZKLFKLWQRZXVXDOO\RFFXSLHVµ 7KHVH VFULEHV KRZHYHU ´QRW KLJKO\ HQGRZHG ZLWK LQWHOOLJHQFHµ WUDQVSRUWHG WKH FRORSKRQ ZLWK WKHVWRU\LELG[Y 0DXULFH5RELQVRQDVVXPHVWKDWLWLVOLNHO\PLVVLQJIURPDQRWKHUIUDJPHQWDU\SDS\ULDVZHOO ∏ 2QFHDFRPSOHWHFRS\RI-RKQRQO\-RKQ²VXUYLYHVEXWWKHQXPHUDWLRQWRJHWKHUZLWK DQHVWLPDWHRIWKHSRVVLEOHOLQHVSHUOHDILQGLFDWHVWKDW-RKQ²ZDVH[FOXGHG6HH5RELQVRQ ´3UHOLPLQDU\2EVHUYDWLRQVµQ5RELQVRQ·VFDOFXODWLRQKRZHYHUUHPDLQVDQHGXFDWHGJXHVV ,W LV H[SOLFLWO\ RPLWWHG E\ &RGH[ 6LQDLWLFXV a IRXUWK FHQW &RGH[ 9DWLFDQXV % IRXUWKFHQWIRXUWKFHQWÀIWKFHQWDQGVL[WKFHQW 5RELQVRQKDVVXJJHVWHGWKHODWWHURSWLRQWKRXJKWH[WFULWLFVPRUHRIWHQFRQFOXGHWKDWWKHVH PDUNVZHUHDGRSWHGIURP$OH[DQGULDQWH[WFULWLFDOSUDFWLFH6HH'DYLG&3DUNHU$Q,QWURGXFWLRQ WRWKH1HZ7HVWDPHQW0DQXVFULSWVDQG7KHLU7H[WV&DPEULGJH8.&DPEULGJH8QLYHUVLW\3UHVV
+$59$5'7+(2/2*,&$/5(9,(:
0DQXVFULSW
'DWH
* + . 0 8 < D Q L P Y W 6 ; G 7RWDO
QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW QLQWKFHQW WHQWKFHQW WHQWKFHQW WHQWKFHQW
2PLW
2PLWZLWK ,QFOXGH EODQN 2EHOL]HG VSDFH
,QFOXGH [ [ [ [ [
[ [ [ [ [ [ [ [ [ [
[
7KLVVDPSOHRIVXUYLYLQJPDQXVFULSWVPD\RUPD\QRWEHUHSUHVHQWDWLYHRIWKH ODUJHUWH[WXDOWUDGLWLRQ1HYHUWKHOHVVWKHUHVXOWVDUHVWULNLQJRIWZHQW\RQHH[WDQW PDMXVFXOH PDQXVFULSWV IURP WKLV SHULRG VL[WHHQ VKRZ VRPH NQRZOHGJH RI WKH SHULFRSHDQGSODFHLWLQLWVWUDGLWLRQDOSODFHLQ-RKQZKLOHÀYHRPLWLWRXWULJKW 2IWKHVL[WHHQVKRZLQJVRPHNQRZOHGJHRIWKHSHULFRSHWZROHDYHDEODQNVSDFH ZKHUHLWFRXOGEHDGGHGODWHUÀYHPDUNLWZLWKREHOLDQGQLQHLQFOXGHLWZLWKLQ DQXQPDUNHGFRQWLQXRXVWH[WRI-RKQ7KHVWRU\PD\KDYHEHHQH[FOXGHGIURP $OH[DQGULDQZLWQHVVHVDQGLJQRUHGE\%\]DQWLQHH[HJHWHVDQGKRPLOLVWVEXWLW UHPDLQHGSDUWRIWKH*UHHNWH[WXDOWUDGLWLRQDQGZDVWKHUHIRUHUHDG\WREHDSSOLHG WRWKHIHDVWGD\VRIYDULRXVIHPDOHVDLQWVERWKEHIRUHDQGDIWHUWKHWHQWKFHQWXU\ OLWXUJLFDOUHIRUPVRI6\PHRQ0HWDSKUDVWHV (PEHGGHGZLWKLQWKHVH%\]DQWLQHPDQXVFULSWVDUHWZRLQWHUSUHWLYHWUDGLWLRQV UHJDUGLQJZKDW-HVXVZURWH$FFRUGLQJWRWKHZLWQHVVHV( * + DQG. -HVXVZURWH´WDNLQJQRQRWLFH>RIWKHP@µkategrafen ei~ thn ghn mh prospoioumeno~ ZKHQZULWLQJWKHÀUVWWLPHWKHWH[WRI&RGH[1DQLDQXV 8 LQIRUPVWKHUHDGHUWKDW-HVXVZURWH´WKHVLQVRIHDFKRIWKHPµegrafen )RUH[DPSOH3KRWLRVWKHQLQWKFHQWXU\SDWULDUFKRI&RQVWDQWLQRSOHQHJOHFWVWKHSDVVDJHLQ KLVH[WDQWVHUPRQV 2Q WKH UHIRUPV RI 6\PHRQ 0HWDSKUDVWHV DQG WKH 0HQRORJLRQ KH SURGXFHG VHH &KULVWLDQ +¡JHO´7KH5HGDFWLRQRI6\PHRQ0HWDSKUDVWHV/LWHUDU\$VSHFWVRIWKH0HWDSKUDVWLF0DUW\ULDµ DQG 6WHSKDQRV (IWK\PLDGLV ´7KH %\]DQWLQH +DJLRJUDSKHU DQG +LV $XGLHQFH LQ WKH 1LQWK DQG 7HQWK&HQWXULHVµLQ0HWDSKUDVLV5HGDFWLRQVDQG$XGLHQFHVLQ0LGGOH%\]DQWLQH+DJLRJUDSK\HG &KULVWLDQ+¡JHO.8/7VVNULIWVHULH2VOR7KH5HVHDUFK&RXQFLORI1RUZD\ ²² $FFRUGLQJWR:LNJUHQWKLVUHDGLQJZDVDOVRIRXQGLQWZRRIWKHOHFWLRQDU\066KHVXUYH\HG 3DULV %LEOLRWKqTXH QDWLRQDOH JU VL[WHHQWK RU ÀIWHHQWK FHQW DQG 2[IRUG %RGOHLDQ /LEUDU\ &DQRQJUÀIWHHQWKRUVL[WHHQWKFHQW
-(11,)(5.1867$1'7200RIWKHP@µWKHUHIRUHÀWVZLWKLQD ZLGHUVKDUHGLQWHUSUHWLYHWUDGLWLRQDWUDGLWLRQWKDWDOVRPDGHLWVZD\LQWRWKHVSHFLÀF FRQWH[WRI&RGH[1DQLDQXV8 DQLQWKFHQWXU\WH[WIURP&RQVWDQWLQRSOH ,QWKHVL[WKFHQWXU\&RQVWDQWLQRSROLWDQSRHWDQGGHDFRQ5RPDQRVWKH0HORGLVW SRSXODUL]HGWKHLPDJHRI&KULVWOLWHUDOO\LQVFULELQJVDOYDWLRQZLWKKLVLQFDUQDWLRQ GHDWKDQGUHVXUUHFWLRQ5HSHDWHGO\LQYRNLQJ-HVXV·ZULWLQJLQDVHULHVRIOLWXUJLFDO K\PQVWLHGWRWKHIHVWLYDOVRIWKHFKXUFK\HDUKHGRHVQRWPHQWLRQWKHSHUFLRSH DGXOWHUDHEXWKHGRHVGHVFULEH-HVXVDVZULWLQJDQGLQFRQWH[WVZKHQZULWLQJLV QRW REYLRXVO\ SUHVHQW )RU H[DPSOH LPDJLQLQJ WKH UHSHQWDQW WKLHI RI /XNH·V SDVVLRQQDUUDWLYH5RPDQRVVXJJHVWVWKDW-HVXVZURWHDQRWLFHprovgramma IRU WKHWKLHILQKLVEORRGZKLFKZDVWKHQSUHVHQWHGWRWKHDQJHOVDVDGLYLQHOHWWHURI UHFRPPHQGDWLRQ´7KHFKHUXELPUHFHLYLQJLWUHFRJQL]HGWKHOHWWHUVVKLQLQJRXW ZLWKWKHJUDFHRIWKHSXUSOHRIEORRGDQGWKH\GHOLJKWHGLQKRZEHDXWLIXOO\LWKDG EHHQGLFWDWHGµ ,QWKLVUHWHOOLQJ&KULVW·VEORRGEHFRPHVWKHLQNDQGWKHZRRGRIWKHFURVVWKH SDUFKPHQWXSRQZKLFKDZULWWHQGHFUHHLVLQVFULEHG$VLPLODUSHUVSHFWLYHLVDGRSWHG LQDQRWKHUKRO\ZHHNK\PQ ããKataiscunqhvtwsanÃÃ gavr fhsin ããajfesthkovt e~, ejpi th`~ gh`~ grafhvtwsanÃÃ: kai; ga;rããw/| mevtrw/ metrei`te metrhqhvsetai ujmi`nÃÃ. Ai]t io~ e{kasto~ eJautw`/ ejsti tou` grafh`nai. Eij ta;! ejpi; gh`~ zhtei`~, ouj zhtei`~ ta; oujravnia: 6&²)&²>WUDQV6PLWK@ 2QWKHGDWHDQGSODFHRIRULJLQRI&RGH[8VHH%LEOLRWHFDQD]LRQDOHPDUFLDQD%LEOLRWKHFDH 'LYL0DUFL9HQHWLDUXPFRGLFHVJUDHFLPDQXVFULSWLYROV5RPH,VWLWXWR3ROLJUDÀFR'HOOR6WDWR 5REHUW 6 1HOVRQ ´7KH /DWHU ,PSDFW RI D *URXS RI 7ZHOIWK&HQWXU\ 0DQXVFULSWVµ %\]DQWLQH6WXGLHV&RQIHUHQFH ²DQG0DULQR=RU]L&ROOH]LRQL9HQH]LDQHGH&RGLFL *UHFLGDOHUDFFROWHGHOOD%LEOLRWHFD1D]LRQDOH0DUFLDQD9HQLFHLO&DUGR QR 7KH 06ZDVFRSLHGLQWKHQLQWKFHQWXU\DQGWKHQHYDQJHOLVWSRUWUDLWVZHUHDGGHGPXFKODWHUSUREDEO\ LQWKHIRXUWHHQWKFHQWXU\DWWKLVVDPHWLPHWKHVFULEH-RDVDSKDGGHGOLWXUJLFDOQRWDWLRQV1HOVRQ ´/DWHU,PSDFWµ=RU]L&ROOH]LRQL9HQH]LDQH 7KLVUHDGLQJRI5RPDQRVLVKHDYLO\LQGHEWHGWR'HUHN.UXHJHU:ULWLQJDQG+ROLQHVV² $OVR VHH +HUEHUW +XQJHU ´5RPDQRV 0HORGRV 'LFWKHU 3UHGLJHU 5KHWRU³XQG VHLQ 3XEOLNXPµ -DKUEXFKGHU|VWHUUHLFKLVKHQ%\]DQWLQLVWLN ² ceroubi;m de; uJpodexavmena ejgnwvrize ta; gravmmata ejklavmponta cavriti porfurivdo~ tou` ai{mato~: ejt evrpeto de; pw`~ uJphgoreuvqh kalw`~ +\PQ 6& )RU GLVFXVVLRQ VHH .UXHJHU:ULWLQJDQG+ROLQHVV²
+$59$5'7+(2/2*,&$/5(9,(:
>+@DYLQJWDNHQLQ>P\KDQG@DUHHG,DPVWDUWLQJWRZULWHDSDUGRQIRUDOO $GDP·VGHVFHQGDQWV0\ÁHVKZKLFK\RXVHHEHFRPHVIRUPHOLNHSDUFK PHQWDQGP\EORRGOLNHLQNZKHUH,GLSP\SHQDQGZULWH
5RPDQRV·VVRQJVUHPDLQHGSRSXODULQ&RQVWDQWLQRSOHIRUFHQWXULHVDIHDVWGD\ 2FWREHU ZDVGHGLFDWHGWRKLPDQGDWOHDVWIRXUGLIIHUHQW/LYHVZHUHFRPSRVHG LQKLVKRQRU7KXVLWPD\KDYHVHHPHGHVSHFLDOO\DSSURSULDWHIRUDVFULEHWRDGG WKDW-HVXVZURWH´WKHVLQVRIHDFKRQHµZKHQGUDZLQJZLWKKLVÀQJHURQWKHJURXQG WKH ROGHVW ZLWQHVV WR WKH H[SDQVLRQ EHLQJ WKH QLQWKFHQWXU\ &RGH[ 1DQLDQXV 8 %XW LI -HVXV OLWHUDOO\ ZURWH WKH VLQV RI HDFK WKH FRQWH[W DSSDUHQWO\ GHPDQGHGDQDGGLWLRQDOFKDQJHKHQFHVRPHODWHUPDQXVFULSWVZLWKWKLVH[SDQVLRQ IXUWKHUUHSODFHWKH´KHDULQJµajkouvsante~ LQYHUVHRIZKDW-HVXVKDGMXVWVDLG ZLWK´UHDGLQJµajnaginwvskonte~ RIZKDW-HVXVKDVZULWWHQWKDWLVWKHVLQV
Q´(DUWK$FFXVHV(DUWKµ7KH3HULFRSHLQ(DUO\0HGLHYDO/DWLQ (DUO\ PHGLHYDO /DWLQ PDQXVFULSWV GR QRW VXSSO\ LQIRUPDWLRQ UHJDUGLQJ -HVXV· ZULWLQJLQWKHLUWH[WVRIWKHSHULFRSHEXWWKH\GRLQFOXGHLQIRUPDWLRQQRQHWKHOHVV tauvth/ ga;r kavlamon labwvn, a[rcomai gravfein sugcwvrhsin pa`s i toi`~ ejk tou` A Δ davm. hJ savrx mou, h{n oJra`/~, w{sper cavrth~ givnetaiv moi, kai; to; ai|mav mou mevlan o{qen bavptw kai; gravfw, dwrea;n nevmwn ajdiavdocon toi`~ kravzousi: +\PQ6& 5RPDQRVWKH0HORGLVW2QWKH/LIH RI&KULVW.RQWDNLDWUDQV(SKUHP/DVK6DQ)UDQFLVFR&DOLI+DUSHU&ROOLQV ²)RU GLVFXVVLRQVHH.UXHJHU:ULWLQJDQG+ROLQHVV² 2QWKHFRQWLQXLQJLPSRUWDQFHRI5RPDQRVWRWKH%\]DQWLQHFKXUFKVHH5-6FKRUN6DFUHG 6RQJIURPWKH%\]DQWLQH3XOSLW5RPDQRVWKH0HORGLVW*DLQHVYLOOH)OD8QLYHUVLW\RI)ORULGD3UHVV ²:LOOLDP / 3HWHUVHQ 7KH 'LDWHVVDURQ DQG (SKUHP 6\UXV DV 6RXUFHV RI 5RPDQRV WKH 0HORGLVW&6&26XEVLGLD/RXYDLQ3HHWHUV ²DQG.UXHJHU:ULWLQJDQG+ROLQHVV 7KHEHDXWLIXOLOOXPLQDWHG0HQRORJLRQRI%DVLO,,FD LQFOXGHVDQLOOXPLQDWLRQRI 6W5RPDQRVIROORZHGE\DEULHI9LWD%LEOLRWHFD$SRVWROLFD9DWLFDQD9DWLFDQXVJUDHFXVIRO VHH.UXHJHU:ULWLQJDQG+ROLQHVVÀJ 5RELQVRQ ZKR KDV FROODWHG WKH SHULFRSH LQ DOO FRQWLQXRXVWH[W 066 UHSRUWV LQ SHUVRQDO FRUUHVSRQGHQFH WKDW WKLV DGGLWLRQ LV DWWHVWHG E\ RWKHU ZLWQHVVHV LQ WKH WHQWK WKURXJK ÀIWHHQWK FHQWXULHV 6HH:DVVHUPDQ´3DWPRV)DPLO\µ0RUHUHFHQWO\RQHDGGLWLRQDO06ZLWKWKLVYDULDQWUHDGLQJ KDV EHHQ LGHQWLÀHG$1$ 7LUDQD$ VLPLODU H[SDQVLRQ LV IRXQG LQ WKH WHQWKFHQWXU\$UPHQLDQ (GVFKPLDG]LQ*RVSHOV,QWKLVXQXVXDOYHUVLRQRIWKHVWRU\-HVXV´ERZLQJKLVKHDGZDVZULWLQJ ZLWK KLV ÀQJHU RQ WKH HDUWK WR GHFODUH WKHLU VLQVµ )UHGHULFN & &RQ\EHDUH WUDQV ´2Q WKH /DVW 7ZHOYH9HUVHVRI6W0DUN·V*RVSHOµ([SRVLWRU UHSU'DYLG&3DUNHU7KH/LYLQJ 7H[WRIWKH*RVSHOV&DPEULGJH8.&DPEULGJH8QLYHUVLW\3UHVV DQG9UHM1HUVHVVLDQ 7KH%LEOHLQWKH$UPHQLDQ7UDGLWLRQ/RQGRQ7KH%ULWLVK/LEUDU\ 7KLV 06WKHQDGGV ´DQGWKH\ZHUHVHHLQJWKHLUVHYHUDOVLQVRQWKHVWRQHVµZKLFKWKRXJKXQLTXHÀQGVDQLQWHUHVWLQJ SRVVLEOHSDUDOOHOLQDQLQWKFHQWXU\-HVXVKDGLWKFROOHFWHGE\$KPDGLEQ+DQEDO7KHKDGLWKLVDV IROORZV ´$ PDQ ZKR KDG FRPPLWWHG DGXOWHU\ ZDV EURXJKW WR -HVXV ZKR RUGHUHG WKHP WR VWRQH KLP-HVXVVDLG¶%XWQRRQHVKRXOGVWRQHKLPZKRKDVFRPPLWWHGZKDWKHKDVFRPPLWWHG·7KH\ OHWWKHVWRQHVIDOOIURPWKHLUKDQGVDOOH[FHSW-RKQVRQRI=DFKDULDKµ7KHWUDQVODWRUQRWHV´7KLVLV DYHUVLRQRIWKH*RVSHOVWRU\GHVFULELQJWKHVWRQLQJRIDQDGXOWHURXVZRPDQWUDQVIRUPHGKHUHLQWR DPDQµ$KPDGLEQ+DQEDO7KH0XVOLP-HVXV6D\LQJVDQG6WRULHVLQ,VODPLF/LWHUDWXUHHGDQG WUDQV7DULI.KDOLGL&DPEULGJH+DUYDUG8QLYHUVLW\3UHVV ²:HDUHJUDWHIXOWR,EUDKLP .KDOLQIRUFDOOLQJRXUDWWHQWLRQWRWKLV-HVXVKDGLWKDQGWR.HFLD$OLIRUHOXFLGDWLQJLWVFRQWH[W
-(11,)(5.1867$1'7200WKHWZRHOGHUVDURVH@ 6&$696$1$6DQFWD6XVDQQD 7KHVHUYDQWVUXVKLQ2&955(56(59,SUREDEO\DSDUDSKUDVHRI'DQLHO² 7KHHOGHUVVHQG IRU6XVDQQD0,7,7($'696$11$'DQLHO´0LWWLWHDG6XVDQQDPµ>VHQGWR6XVDQQD@ 7KHHOGHUVDFFXVH6XVDQQD0,6(50$196SUREDEO\DSDUDSKUDVHRI'DQLHO´3RVXHUXQW PDQXVµ>WKH\ODLGWKHLUKDQGVRQKHUKHDG@ &RQYLFWHGRIDGXOWHU\6XVDQQDLVOHGEHIRUH'DQLHO &94'9&(5(7$'0257('DQLHO´&XPTXHGXFHUHWXUDGPRUWHPµ>$QGZKHQVKHZDVOHG DZD\WREHSXWWRGHDWK@ 'DQLHODFFXVHVWKHHOGHUV,19(7(5$7(',(50$/25'DQLHO ´,QYHWHUDWHGLHUXPPDORUXPµ>2\RXZKRDUHJURZQROGLQHYLOGD\V@ 7KHHOGHUVJLYHFRQÁLFWLQJ
+$59$5'7+(2/2*,&$/5(9,(:
LPDJHVDOVRH[WHQGWKHQDUUDWLYHGHSLFWLQJIRUH[DPSOHWKHVWRQLQJRIWKHHOGHUV DGHWDLOWKDWLVQRWVSHFLÀ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ÁDWHGSRVVLEO\ZLWKWKHDGXOWHUHVV RI-RKQDVZHOO)OLQWFRQFOXGHV >7@KH YHLOHG DQG VWDQGLQJ ZRPDQ >RI WKH /RWKDLU &U\VWDO@ PD\ DOVR UHSUHVHQW 6XVDQQD·V OLWXUJLFDO FRPSDQLRQ WKH XQQDPHG DGXOWHURXV ZRPDQ RI WKH JRVSHO 7KH WZR VWDQGLQJ ÀJXUHV ZRXOG WKHQ EH WKH 6FULEHV RI WKH JRVSHO³DQG WKH VHDWHG ÀJXUH UHSUHVHQWDWLYH RI &KULVW KLPVHOI VLWWLQJ FDQRSLHGLQMXGJPHQWLQWKH7HPSOH
:KHWKHURUQRWWKH/RWKDLU&U\VWDOFRQÁDWHVWKH6XVDQQDVDQGWKHDGXOWHUHVVWKH FU\VWDODQGWKHJROGHQFRYHURI&KDUOHVWKH%DOG·V*RVSHOVGRSUHVHQWDVHULHVRI LQWULJXLQJFRLQFLGHQFHVERWKZHUHOLNHO\GHVLJQHGIRUWKHSHUVRQDOFROOHFWLRQVRI &DUROLQJLDQNLQJVERWKSDUDSKUDVHSDVVDJHVIURPWKHLUFKRVHQVWRULHVDQGERWK HYLGHQFHDQGDUHFRQGHPQHG5(&7(0(17,7,796(6'DQLHORU´5HFWHPHQWLWXVHVµ RU´5HFWHPHQWLWXVHVµ>:HOO\RXKDYHOLHGRU:HOO\RXKDYHDOVROLHG@ 7KHHOGHUVDUHH[HFXWHG )(&( 54( ,66,&970$ /((*( 5$17 'DQLHO ´)HFHUXQWTXH HLV VLFXWL PDOH HJHUDQWµ >$QGWKH\GLGWRWKHPDVWKH\KDGPDOLFLRXVO\GHDOWDJDLQVWKHU @6XVDQQDLVGHFODUHGLQQRFHQW DQG JLYHV WKDQNV (76$/9$796(6$1*«,112;,96, 1'«$ 'DQLHO ´(W VDOYDWXV HVW VDQJXLV LQQR[LXV LQ GLH LOODµ >$QG LQQRFHQW EORRG ZDV VDYHG WKDW GD\@ 7KLV UHFRQVWUXFWLRQ LV GHSHQGHQW XSRQ WKDW RI *HQHYUD .RUQEOXWK ´7KH 6XVDQQD &U\VWDO RI /RWKDLU ,, &KDVWLW\ WKH &KXUFKDQG5R\DO-XVWLFHµ*HVWD ²DSSHQGL[² 7KH H[DFW SXUSRVH DQG PHVVDJH RI WKH /RWKDLU &U\VWDO KDV EHHQ D VXEMHFW RI FRQVLGHUDEOH GHEDWHWKRXJKVFKRODUVDJUHHWKDWDQHPSKDVLVLVSODFHGXSRQMXVWMXGJPHQW6HH.RUQEOXWK´7KH 6XVDQQD&U\VWDOµHVS²DQG)OLQW´6XVDQQDµ² 7KH &RPHV RI :U]EXUJ :U]EXUJ 8QLYHUVLWlWVELEOLRWKHN 0SWKI WKH &RPHV RI 0UEDFK%HVDQFRQ%LEO0XQ DQGDOHFWLRQDU\IURPHLWKHU6W$PDQGRU0DUFKLHQQHV'RXDL %LEOLRWKHTXH0XQLFLSDOH&RGH[ 6HH)OLQW´6XVDQQDµ2QWKH&RPHVRI:U]EXUJDOVR VHH +DQV 7KXUQ &RPHV 5RPDQXV :LU]LEXUJHQVLV )DFVLPLOHDXVJDEH GHV &RGH[ 0SWKI GHU 8QLYHUVLWlWV%LEOLRWKHN:U]EXUJ*UD]$XVWULD$NDGHPLVFKH'UXFNX9HUODJVDQVWDOW 3LHWUL 5RPD FKULVWLDQD 5pFKHUFKHV VXU O·eJOLVH GH 5RPH VRQ RUJDQLVDWLRQ VD SROLWLTXH VRQLGpRORJLHGH0LOWLDGHj6L[WH,,,² %LEOLRWKqTXHGHVHFROHVIUDQoDLVG·$WKqQHVHWGH 5RPH5RPHeFROHIUDQoDLVHGH5RPH ²DQG$QWRLQH&KDYDVVH´/HVSOXV DQFLHQVW\SHVGXOHFWLRQQDLUHHWGHO·$QWLSKRQDLUHURPDLQVGHOD0HVVH5DSSRUWVHW'DWHµ5% ²HVS² )OLQW´6XVDQQDµ
-(11,)(5.1867$1'7200-HVXV·@SRLQWLQJÀQJHUWRXFKHV WKHODVWOHWWHUDVLIWRLQGLFDWHKLVDFWRIZULWLQJ,WLVQRWZULWWHQKRUL]RQWDOO\DFURVVWKHÀHOG OLNH RWKHU LQVFULSWLRQV LQ WKH PLQLDWXUHV RI WKLV PDQXVFULSW ,W LV WKH RQO\ LQVFULSWLRQ RI VSHHFK LQWKHHQWLUHVHULHVRI*RVSHOVFHQHV%XWWKHVHDUHQRWUHDOO\VSRNHQZRUGVE\FDOOLQJXSRQWKH DFFXVHUVWRUHDGKLVPXWHZULWLQJ&KULVWHYRNHVLQWKHPDFRUUHVSRQGLQJLQQHUVSHHFKWKHYRLFH RIFRQVFLHQFHµ0H\HU6KDSLUR:RUGV6FULSWDQG3LFWXUHV6HPLRWLFVRQ9LVXDO/DQJXDJH1HZ WKDW@ RFFXSLHG WKH UHOLJLRXV FRQVFLRXVQHVV RI VHFRQG FHQWXU\ 6\ULDQV LQ WKH QHLJKERUKRRGRI+LHUDSROLVµ)XUWKHUPRUHGUDZLQJRQDZHDOWKRIVFKRODUVKLS RQWKH&KULVWLDQL]DWLRQRIODWHDQWLTXH6\ULD)UDQNIXUWHUDUJXHVWKDWVXFKORFDO GHFHQWHUHGSUDFWLFHVDQGSLHWLHVSHUVLVWHGZHOOLQWRWKHÀIWKDQGVL[WKFHQWXULHV DQGLQGHHGFRH[LVWHGDQGHYHQFURVVSROOLQDWHGZLWK6\ULDQ&KULVWLDQLW\GXULQJ WKRVHFHQWXULHV2QHRIWKHSUREOHPVWKDWVXFKORFDOGHFHQWHUHGSUDFWLFHVSRVHIRU WKHKLVWRULDQLVWKDWWKH\WHQGWROHDYHIDUIHZHUUHPDLQVWKDQWKHWHPSOHVDQGRWKHU FXOWFHQWHUV,QRUGHUWRUHFRQVWUXFWWKHVHSUDFWLFHVDQGWKHPHQWDOLWpWKH\SUHVXPH WKHKLVWRULDQ)UDQNIXUWHUDYHUV PXVWFDVWWKHQHWPRUHZLGHO\ $FFRUGLQJO\)UDQNIXUWHUFLWHVWZRLFRQRJUDSKLFIRUPVQDWLYHWRODWHDQWLTXH 6\ULDDVHYLGHQFHIRUWKLV´PRUHEDVLFµSLOODUV\PEROLVP7KHÀUVWLVWKH$UDELDQ EDHW\O FXOW ZKHUHLQ VPDOO FRQLFDO VWRQHV DUH VHW LQ KLJK SODFHV UHJDUGHG DV VDFUHG$OWKRXJK WKHVH VPDOOPRQXPHQWVGR QRW DPRXQWWR SLOODUVRQ WKH VFDOH RI 6LPHRQ·V WKH\ GR ZLWQHVV WR WKH IDFW WKDW ´WKURXJKRXW *UHFR5RPDQ 6\ULD DQG$UDELD«WKHUHZDVDFRQWLQXRXVUHOLJLRXVWUDGLWLRQRIHUHFWLQJPRQROLWKVDV V\PEROVRISROLWLFDOVWDELOLW\DQGFRQQHFWLRQZLWKVDFUHGSRZHUµ7KHVHFRQGLV WKHVRFDOOHG´FUHVFHQWVWDQGDUGµ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·VSLOODUDVDGLYLQHO\RUGDLQHG LQQRYDWLRQ LQ GHYRWLRQDO SUDFWLFH 6XUSULVLQJO\ )UDQNIXUWHU GRHV QRW DUJXH WKDW WKHWZRKDJLRJUDSKHUVDUHVXSSUHVVLQJWKHFRQWLQXLW\EXWWKDWWKH\KDYHPLVVHGLW
)UDQNIXUWHU´6W\OLWHVµ ,ELG ,ELG ,ELG ,ELG ,ELG²
&+$5/(6067$1*
HQWLUHO\2Q)UDQNIXUWHU·VFRQVWUXDOWKHKDJLRJUDSKHUVZRXOGRQO\EHLQWHUHVWHG LQ ZKHWKHU DQG KRZ WKH VDLQW IDFHG GRZQ WKH *UHFR5RPDQ JRGV ZKRVH FXOWV OLNHWKDWRI$WDUJDWLVDW+LHUDSROLV ORRPHGODUJHRQWKHLUKRUL]RQ%HFDXVHWKH\ FRUUHFWO\ SHUFHLYHGQRFRQWLQXLW\EHWZHHQWKH+HOOHQL]HGFXOWFHQWHUVDQG6LPHRQ )UDQNIXUWHUDUJXHVKLVVW\OLWLVPFRXOGJHQXLQHO\DSSHDUWRWKHPDVDQRYHOW\,Q RWKHUZRUGVWKHKDJLRJUDSKHUVOLNH/XFLDQZHUHVREOLQGHGE\WKHVH+HOOHQL]HG FXOWFHQWHUVWKDWWKH\GLGQRWQRWHWKHZD\LQZKLFK6LPHRQ·VSLOODUSDUWLFLSDWHG LQWKHZLGHUORFDODQGGHFHQWHUHGUHOLJLRXVODQGVFDSHRIODWHDQWLTXH6\ULD7KLV LVDQLQWULJXLQJK\SRWKHVLVEXWRQHWKDWLVKDUGWRIDOVLI\EHFDXVHLWSRVLWVDEOLQG VSRWLQWKHKDJLRJUDSKHUVDIDLOXUHWRSHUFHLYHZKDWZDVLI)UDQNIXUWHULVFRUUHFW DOODURXQGWKHP&RXOGERWKKDJLRJUDSKHUVKDYHVLPSO\DQGLQGHSHQGHQWO\PLVVHG ZKDWLVWR)UDQNIXUWHUVRFOHDULQUHWURVSHFW" :KDWDUHZHWRPDNHRIWKLVGHEDWHUHJDUGLQJVW\OLWLVP·VDQWHFHGHQWV"+DUYH\ DQGHVSHFLDOO\)UDQNIXUWHUEULQJFRJHQWFULWLFLVPVWREHDURQ:ULJKW·VRIWHQORRVHO\ DVVRFLDWLYHDUJXPHQWV:KDW,ÀQGPRVWSURPLVLQJKRZHYHULVZKHUH:ULJKWDQG )UDQNIXUWHURYHUODS%RWKVXJJHVWWKDW6LPHRQ·VSLOODUZDVQRWDVDFUHGV\PERO FUHDWHGH[QLKLOREXWJUHZRXWRIDQGWKHUHIRUHDSSHDOHGWRORFDOWUDGLWLRQV:ULJKW ZDQWVWRZHDYH6LPHRQLQWRDJUDQGQDUUDWLYHZHQGLQJIURPDQFLHQW0HVRSRWDPLD WKURXJK&KULVWRQWKHFURVVWRÀIWKFHQWXU\6\ULD)UDQNIXUWHUDOVRZDQWVWRZHDYH 6LPHRQLQWRDQDUUDWLYHDOEHLWOHVVJUDQGDIDUUHDFKLQJSLOODUSLHW\³ORFDOEXWDOVR ZLGHVSUHDGEHFDXVHGHFHQWHUHG7KH\DJUHHKRZHYHUWKDWWKHSLOODUZDVDVDFUHG V\PERODURXQGZKLFKUHYROYHGDZKROHFRQVWHOODWLRQRIPHDQLQJVDQGDVVRFLDWLRQV LQFOXGLQJIRU6LPHRQ·VFRQWHPSRUDULHVIHUWLOLW\DFFXPXODWHGVSLULWXDOSRZHUDQG SUHVHQFHDQGFRPPXQLFDWLRQZLWKWKHGLYLQH
Q'LJJLQJDQG%XLOGLQJ'HVFHQGLQJDQG$VFHQGLQJ6LPHRQ·V 3LOODULQWKH&RQWH[WRI+LV6ROR$VFHWLF&DUHHU 7KHRGRUHWRI&\UUKXV ,Q FKDSWHU RI KLV +LVWRULD 5HOLJLRVD 7KHRGRUHW RI &\UUKXV VSHDNV DV DQ H\HZLWQHVV RI WKH OLIH RI 6LPHRQ :H OHDUQ IURP WKH ELVKRS WKDW 6LPHRQ ZDV FRQYHUWHGWRWKHDVFHWLFOLIH³ZKDWKHFDOOVSKLORSRQLDDQGSKLORVRSKLD³PXFKDV $QWRQ\ZDVE\KHDULQJWKH*RVSHOUHDGLQFKXUFK+HDVNVDQDPHOHVVE\VWDQGHU KRZVRPHRQHPLJKWJDLQZKDWWKHEHDWLWXGHVRIIHUDQGKHLVWROGWRSXUVXH´WKH VROLWDU\ PRQDGLNRV OLIHµ 7KH HDUQHVW \RXQJ VKHSKHUG WKHQ ÁHHV WR D ORFDO PDUW\ULRQLQRUGHUWRSUD\+LVSUD\HUJLYHVZD\WRVOHHSDQGDVWUDQJHGUHDP ¶, VHHPHG WR EH GLJJLQJ >ojruvttein@ D IRXQGDWLRQ >qemevlia@· KH VDLG ¶DQG WKHQ , KHDUG VRPHRQH VWDQGLQJ WKHUH WHOO PH WKDW , KDG WR GHHSHQ WKH GLWFK >baquvnein to; o[rugma@,GHHSHQHGLWDVKHRUGHUHGDQGWKHQDWWHPSWHGWRUHVW
,ELG +5 +5
+$59$5'7+(2/2*,&$/5(9,(:
DZKLOHEXWKHDJDLQFRPPDQGHGPHWRGRWKLVDWKLUGDQGDIRXUWKWLPHKH ÀQDOO\VDLGWKDWLWZDVGHHSHQRXJKDQGRUGHUHGPHWREXLOG>oijkodomei`n@ IURPQRZRQZLWKRXWWURXEOHDVLIWKHWRLOZDVRYHUDQGWKHEXLOGLQJZRXOG EHQRWURXEOH·
,WZLOOEHVRPHWLPHEHIRUH6LPHRQVHWVRXWRQKLVRZQDIWHU\HDUVRIWU\LQJWKH FRHQRELWLFOLIH WRSXUVXHDQDVFHWLFFDUHHUIRUZKLFKKHZLOOEHFRPHLQ IDPRXV %XWWKLVGUHDPVHUYHVDVDQRPHQRIZKDWLVWRFRPH6LPHRQZLOOLQGHHGEXLOGQRW RQO\DSLOODUEXWDOVRWZRRWKHUVSDFHVIRUKLPVHOI%H\RQGWKHSUHGLFWLYHTXDOLW\ RIWKHGUHDPKRZHYHUZHVKRXOGQRWHWKHFRPPDQGVWRJRGRZQWRGHVFHQGWR GLJDQGWKHQWRJRXSWRDVFHQGWREXLOG7KHVHDUHWKHYHFWRUVWKDWZLOOJRYHUQ WKH´JHRPHWU\µRI6LPHRQ·VVXEVHTXHQWDVFHWLFLVP 6LPHRQ·VGUHDPDOVRUHFDOOV-HVXV·VLPLOHIURP/XNH²569 (YHU\ RQH ZKR FRPHV WR PH DQG KHDUV P\ ZRUGV DQG GRHV WKHP , ZLOO VKRZ\RXZKDWKHLVOLNHKHLVOLNHDPDQEXLOGLQJ>oijkodomou`nti@DKRXVH ZKRGXJGHHS>e[skayen kai; ejbavqunen@DQGODLGWKHIRXQGDWLRQXSRQURFN >e[qhken qemevlion ejpi; th;n pevtran@DQGZKHQDÁRRGDURVHWKHVWUHDPEURNH DJDLQVWWKDWKRXVHDQGFRXOGQRWVKDNHLWEHFDXVHLWKDGEHHQZHOOEXLOW>dia; to; kalw`~ oijkodomh`sqai@
7KHRGRUHW·VFKRLFHRIZRUGVHFKRHV/XNH·VGLJJLQJGHHSbaquvnein EXLOGLQJ oijkodomei`n DQG OD\LQJ D IRXQGDWLRQ qemevlio~ 7KLV UDLVHV WKH TXHVWLRQ RI ZKHWKHUDWOHDVWIRU7KHRGRUHWERWK6LPHRQ·VGLJJLQJDQGEXLOGLQJDUHDIRUPRI LPLWDWLR&KULVWL:HZLOOUHWXUQWRWKLVTXHVWLRQLQPRUHGHWDLOEHORZ :KDWIROORZVRQWKLVGUHDPLQ7KHRGRUHW·VWHOOLQJLVDGR]HQ\HDUVRIDVFHWLF SUDFWLFHLQWKHFRPSDQ\RIRWKHUV³ÀUVWWZR\HDUVLQXQNQRZQFLUFXPVWDQFHV´ZLWK VRPHQHDUE\DVFHWLFVµDQGWKHQWHQ\HDUVLQDPRQDVWHU\RU´VFKRRORISKLORVRSK\µ LQWKHYLOODJHRI7HOHGDXQGHUWKHJXLGDQFHRIDFHUWDLQ+HOLRGRUXV6LPHRQVRRQ UXQV DIRXO RI WKH FRPPXQLW\ IRU KLV H[FHVVLYH GHSULYDWLRQV DQG H[WUDYDJDQW PRUWLÀFDWLRQV FKLHI RI ZKLFK LV KLV ZUDSSLQJ WLJKWO\ DURXQG KLV WUXQN D URXJK SDOPOHDIURSHWKDWFXWVLQWRKLVVNLQVXFKWKDWKHOHDYHVDWUDLORIEORRG7KLVDQG RWKHUVSHFWDFXODUEUHDFKHVRIGLVFLSOLQHIRUFHWKHVXSHULRUVWRVHQG6LPHRQDZD\ :KDWLVPRVWLQWHUHVWLQJLVWKDW6LPHRQDVVRRQDVKHLVIUHHIURPWKHFRP PXQLW\DQGLWVGLVFLSOLQHVWUDLJKWDZD\GRHVVRPHWKLQJUHPLQLVFHQWRIKLVGUHDP IURP\HDUVEHIRUH³KHGHVFHQGV´6RKHOHIWDQGFDPHWRWKHPRUHXQLQKDELWHGSDUWV RIWKHPRXQWDLQ7KHUHKHIRXQGDFLVWHUQZDWHUOHVV>lavkkon tina; a[nudron@ DQGQRWWRRGHHSDQGKHORZHUHGKLPVHOIGRZQLQWRLWDQGVDQJK\PQVWR*RGµ %XWKLVGHVFHQWLVQRWWRODVW$IWHUMXVWÀYHGD\VWKHVXSHULRUVRIWKHPRQDVWHU\ UHSHQWRIWKHLUGHFLVLRQDQGJRORRNLQJIRUWKH\RXQJDWKOHWH6KHSKHUGVOHDGWKHP WRWKHFLVWHUQZKHUHZLWKJUHDWGLIÀFXOW\WKHPRQNVUHWULHYH6LPHRQ1RWVDWLVÀHG ,ELGWKHFRUUHVSRQGLQJYLVLRQLQWKH6\ULDFYLWD² LVPXFKPRUHHODERUDWHEXWGRHVQRW LQFOXGHWKHLQMXQFWLRQWRGLJ³RQO\WREXLOG +5 ,ELG
&+$5/(6067$1*
WRUHWXUQWRWKHFRPPXQLW\6LPHRQJRHVWRWKHYLOODJHRI7HODQLVVRVDWWKHIRRW RIWKHPRXQWDLQRQZKLFKKHZLOOHYHQWXDOO\PRXQWKLVSLOODU7KHUHDWWKHIRRWRI WKHPRXQWDLQKHWDNHVXSWKHSKLORVRSKLFDOOLIHRQWKHVXUIDFHUDWKHUWKDQLQWKH GHSWKVRIWKHHDUWK´+HIRXQGWKHUHDVPDOOKXWDQGVSHQWWKUHH\HDUVFRQÀQHGLQ LWµ+HWKHQOHDYHVWKHKXWDQGDVFHQGVWKHPRXQWDLQDWZKRVHVXPPLWKH RUGHUHG D FLUFXODU ZDOO WR EH PDGH DQG KDG D FKDLQ RI WZHQW\ FXELWV ORQJ PDGHRXWRILURQ+HIDVWHQHGRQHHQGRILWWRDKXJHURFNDQGDWWDFKHGWKH RWKHU WR KLV ULJKW IRRW VR WKDW HYHQ LI KH ZDQWHG WR KH FRXOG QRW OHDYH WKH FRQÀQHV+HUHPDLQHGLQVLGHNHHSLQJKHDYHQDOZD\VEHIRUHKLVH\HDQGIRUF LQJKLPVHOIWRFRQWHPSODWHZKDWOLHVEH\RQGWKHKHDYHQVIRUWKHLURQIHWWHU FRXOGQRWKLQGHUWKHÁLJKWRIWKHPLQG
,QWRWKLVRSHQDLUWKHDWUHRISKLORVRSK\³TXLWHOLWHUDOO\´LQWKHURXQGµ³ZDQGHUV WKHFK{UHSLVNRSRV0HOHWLXVZKRVHHPLQJO\QRWDWDOOLPSUHVVHGUHPDUNVWRWKH DVSLULQJKRO\PDQWKDWWKHLURQIHWWHULVVXSHUÁXRXV´VLQFHULJKWUHDVRQVXIÀFHG WRSODFHUDWLRQDOIHWWHUVRQWKHERG\µ6LPHRQUHOHQWVDQGKDVDVPLWKEUHDNKLV VKDFNOHVEXWKLVDFFHSWDQFHRI0HOHWLXV·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ÀUVWGULYH6LPHRQXSDSLOODU´+HIRXQG >WKLVH[FHVVRIKRQRU@DQQR\LQJDQGWHGLRXVDQGWKHUHIRUHGHYLVHGWKHVWDQGLQJRQ DFROXPQµ7KHRGRUHWIUDPHVWKHSLOODUDVDSUDFWLFDOPHDVXUHMXVWDV-HVXVUHWLUHG WRDERDWWRHVFDSHWKHFURZGVVR6LPHRQDVFHQGHGDSLOODU2QHZRQGHUVDVWR WKHHIÀFDF\RIWKLVHVFDSHKRZHYHUVLQFHKLVÀUVWSLOODULVVDLGWRKDYHEHHQRQO\ VL[FXELWVKLJK$VWKHSLOODULQFUHDVHVLQKHLJKW³HYHQWXDOO\UHDFKLQJDKHLJKW RIWKLUW\VL[FXELWV³ZKDWEHJDQDVDSUDFWLFDOPHDVXUHWRHVFDSHWKHFURZGVRI DGPLUHUVEHFRPHVDPHDQVIRU6LPHRQ´WRVRDUWRKHDYHQDQGOHDYHWKLVHDUWKO\ VRMRXUQµ-XVWDVTXLFNO\DV7KHRGRUHWIUDPHVWKHSLOODUDVDSUDFWLFDOPHDVXUH KRZHYHUKHLQVLVWVWKDWWKHSLOODUPXVWDOVREHD´GLYLQHGLVSHQVDWLRQµ7KHUHZHUH
+5 ,ELG ,ELG ,ELG ,I D FXELW LV RQO\ DERXW HLJKWHHQ LQFKHV WKHQ 6LPHRQ·V ÀUVW SLOODU RQO\ SXW KLP QLQH IHHW DERYHWKHFURZGV +5 ,ELG
+$59$5'7+(2/2*,&$/5(9,(:
HYLGHQWO\VRPH´IDXOWÀQGHUVµZKRZHUHQRWIDYRUDEO\GLVSRVHGWRZDUGV6LPHRQ·V SLOODUSUDFWLFH7KHRGRUHWUHPLQGVWKHVHFULWLFVKRZRIWHQ*RGKDVVLQJOHGRXW KLVSURSKHWVIRUH[WUDRUGLQDU\SXEOLFGHYRWLRQV*RGKDVHQMRLQHGXSRQ6LPHRQ ´WKLVH[WUDRUGLQDU\QRYHOW\WRGUDZHYHU\RQHE\LWVVWUDQJHQHVVWRWKHVSHFWDFOH DQG PDNH WKH SURIIHUHG FRXQVHO SHUVXDVLYH WR WKRVH ZKR FRPHµ 7KHRGRUHW WKHUHIRUHVHHPVWRZDIÁHEHWZHHQH[SODQDWLRQV:DVLWDSUDFWLFDOPHDVXUHRUD VSHFLDOGLVSHQVDWLRQIURPDERYH"(LWKHUZD\WKHSUDFWLFHLVDFFRUGLQJWR7KHRGRUHW FOHDUO\DQLQQRYDWLRQRQHRIWKRVH´QHZDQGPDQLIROGPRGHVµRIGHYRWLRQWKDW *RGLQWURGXFHVWRZLQEDFNRXUÁDJJLQJDWWHQWLRQ $QWRQLXV ,Q KLV YLWD RI 6LPHRQ$QWRQLXV RIIHUV DQ DFFRXQW ODUJHO\ FRPSDWLEOH ZLWK 7KHRGRUHW·V+HUHWKH\RXQJPRQN6LPHRQLVDOVRVDLGWRKDYHWLJKWO\ZUDSSHG KLVWRUVRLQDURSHKLGGHQXQGHUKLVFORDN$IWHUD\HDULQVXFKDVWDWHKLVURWWHQ ÁHVKJLYHVRIIVXFKDVWHQFKWKDWKLVIHOORZPRQNVFDQQRWVWDQGWREHQHDUKLPRU KLVZRUPLQIHVWHGEHG+LVVHFUHWGLVFLSOLQHLVGLVFRYHUHGDQGDIWHUÀIW\GD\VRI FRQYDOHVFHQFHDWWKHPRQDVWHU\KHLVHQFRXUDJHGWROHDYH+HGRHVVRDQGÁHHVWR ´DZHOO>frevar@QHDUWKHPRQDVWHU\ZKLFKFRQWDLQHGQRZDWHUEXWPDQ\XQFOHDQ HYLOVSLULWVOLYHG>LQ@LWQRWRQO\XQFOHDQVSLULWVEXWDOVRXQLPDJLQDEOHQXPEHUVRI DVSVYLSHUVVHUSHQWVDQGVFRUSLRQVVRWKDWHYHU\ERG\ZDVDIUDLGWRSDVVE\WKDW SODFHµ$OWKRXJK$QWRQLXVGRHVQRWPHQWLRQDQ\GUHDPRIGLJJLQJDQGEXLOGLQJ DV7KHRGRUHWGRHVKLV6LPHRQGRHVLQDXJXUDWHKLVVRORDVFHWLFFDUHHUZLWKDVLPLODU GHVFHQWKHUHLQWRDZHOOUDWKHUWKDQDFLVWHUQ:KDWHYHUH[DFWO\KHZDVGRLQJDW WKHERWWRPRIWKHZHOO´PDNLQJWKHVLJQRIWKHFURVVµDPLGVW´WKHKRUGHVRIZLOG EHDVWVµ LWLVFXWVKRUWDIWHUMXVWDZHHNZKHQDIHDUIXOGUHDPFRQYLQFHVWKHDEERW WRÀQG6LPHRQDQGUHWXUQKLPWRWKHPRQDVWHU\:KHQWKHPRQNVÀQGKLPDWODVW LQWKHERWWRPRIWKHZHOO6LPHRQFRPSODLQVDQGEHVHHFKHVWKHP´>%@URWKHUVDQG VHUYDQWVRI*RGJUDQWPHDOLWWOHWLPHWRGLH7KDW,FDQQRWIXOÀOOZKDW,VHWRXWWR GRLVWRRPXFKIRUPHµ 6LPHRQRQO\DJUHHVWRUHWXUQWRWKHPRQDVWHU\ZKHQWKHDEERWDFNQRZOHGJHV KLPDVKLVWHDFKHU%XWDIWHUWKUHH\HDUVRIFRQWLQXDOZHHSLQJ6LPHRQRQFHDJDLQ XQH[SHFWHGO\ OHDYHV WKH PRQDVWHU\ WR ÁHH WR D ´VSDUVHO\ LQKDELWHG SODFHµ QHDU WKHYLOODJHRI7DODQLVSUHVXPDEO\DQRWKHUUHQGHULQJRI7KHRGRUHW·V7HODQLVVRV 5HPLQLVFHQWRIWKHDQJHO·VFRPPDQGWKDWKHEXLOGDVPHQWLRQHGE\7KHRGRUHW
,ELG ,ELG ,ELG $QW ,ELG ,ELG 5REHUW'RUDQ7KH/LYHVRI6LPHRQ6W\OLWHV
&+$5/(6067$1*
6LPHRQÀUVWEXLOGVIRUKLPVHOIDQRSHQDLUHQFORVXUHIURPXQPRUWDUHGVWRQHV+H VWDQGVLQWKHPLGGOHRIWKLVFLUFOHWKHUHLVQRPHQWLRQKHUHRIDWHWKHURUVKDFNOH IRUIRXU\HDUV´WKURXJKVQRZUDLQDQGEXUQLQJVXQDQGPDQ\FDPHWRKLPµ2QO\ QRZGRHVKHEXLOGDQGPRXQWKLVIDPRXVSLOODUDWÀUVWRQO\IRXUFXELWVKLJK2QFH ´KLVIDPH>VWDUWVWR@VSUHDGHYHU\ZKHUHµFURZGVEHJLQWRDUULYHDQGWKH\EXLOGWZR RSHQDLUHQFORVXUHVDURXQGKLVSLOODUPXFKOLNHWKHRSHQDLUHQFORVXUHLQZKLFKKH KDGVSHQWWKHSUHYLRXVIRXU\HDUV$IWHUVHYHQ\HDUVWKHFURZGVEXLOGKLPDQRWKHU SLOODURUDGGWRWKHH[LVWLQJSLOODU WKLVRQHWKLUW\FXELWVKLJKRQZKLFKKHVWDQGV IRUÀIWHHQ\HDUV)LQDOO\WKHFURZGVH[WHQGWKLVSLOODUWRIRUW\FXELWVZKHUHXSRQ 6LPHRQ·V´IDPHVSUHDGWKURXJKRXWWKHZKROHZRUOGµ$QWRQLXVWHOOVXVWKDW DOOLQDOO6LPHRQ´VWRRGRQGLIIHUHQWSLOODUVIRUIRUW\VHYHQ\HDUVµ 8QOLNH 7KHRGRUHW ZKR ZDIÁHV EHWZHHQ H[SODQDWLRQV RI 6LPHRQ·V SLOODU $QWRQLXVRIIHUVQRH[SOLFLWDSRORJLD+HGRHVKRZHYHURIIHUDQLPSOLFLWH[SODQDWLRQ E\ZD\RIMX[WDSRVLWLRQ$IWHUQDUUDWLQJKRZ6LPHRQÀUVWPRXQWVKLVRZQSLOODU IROORZHGE\WKHWDOOHUSLOODUEXLOWE\WKHFURZGV$QWRQLXVLPPHGLDWHO\UHPDUNV ´+RO\6LPHRQLPLWDWHGKLVWHDFKHU&KULVWµ7KLVUDLVHVWKHTXHVWLRQRIZKHWKHU $QWRQLXVXQGHUVWDQGV6LPHRQ·VDVFHQWRIDSLOODUWREHDNLQGRILPLWDWLR&KULVW )RU$QWRQLXVZKDWH[SOLFLWO\OLQNV6LPHRQWR&KULVWLVWKHIDFWWKDWKH´SHUIRUP>V@ PDQ\ KHDOLQJVµ ´&DOOLQJ RQ >&KULVW@ >6LPHRQ@ PDGH WKH ODPH ZDON FOHDQVHG OHSHUVPDGHWKHGXPEVSHDNPDGHSDUDO\WLFVPRYHDERXWZLWKHDVHKHDOHGWKH FKURQLFDOO\LOOµ%XWIRU$QWRQLXVDWOHDVWWKHWZRDUHLQH[WULFDEO\OLQNHG6LPHRQ RQO\EHJLQVKHDOLQJSHRSOHZKHQKHLVDWRSKLVSLOODU,QWKLVFDVHWKHKHDOLQJVDQG WKHSLOODUZRXOGERWKVHHPWREHSDUWRIDQLPLWDWLR&KULVWL :KHQWKHPRQNVSXOO6LPHRQIURPWKHZHOODJDLQVWKLVZLOOKHSOHDGVZLWK WKHP´>*@UDQWPHDOLWWOHWLPHWRGLH7KDW,FDQQRWIXOÀOOZKDW,VHWRXWWRGRLVWRR PXFKIRUPHµ7KLVZRXOGVHHPWRVXJJHVWWKDWDFFRUGLQJWR$QWRQLXVLIWKHUH ZHUHDFRQVLVWHQWPRWLYDWLRQIRU6LPHRQ·VVRORDVFHWLFLVPLWLVKLVGHVLUHWRPRUWLI\ KLPVHOIWRGLH³EXWWRGLHWRZKDWSUHFLVHO\LVXQFOHDU$QGLIZHWDNHWKHSLOODUDV WKHFXOPLQDWLRQRIKLVDVFHWLFFDUHHUDVWKHIXOÀOOPHQWRIKLVLQWHUUXSWHGGHVLUHWR GLHWKHQRQHHSLVRGHIURPKLVÀQDODVFHWLFVWDJHWKDWLVDWRSDIRUW\FXELWSLOODU FRPHVWRKDYHSHFXOLDUVLJQLÀFDQFHIRUDSSUHFLDWLQJKLVLPLWDWLR&KULVWL-XVWDVKH LVHVWDEOLVKHGRQKLVQHZSLOODU6LPHRQEHFRPHVYLFWLPWRWKHGHYLOZKRVPLWHV KLPRQKLVWKLJKUHVXOWLQJLQDZRXQGWKDWEHFRPHVSXWULGIRUFLQJKLPWRVWDQG RQRQHIRRWIRUWZR\HDUV7KLVSXWULGZRXQGSURGXFHV´KXJHQXPEHUVRIZRUPVµ WKDWIDOOWRWKHJURXQGVXFKWKDW´WKRVHQHDUKLPKDGQRRWKHUMREEXWWRFROOHFW
$QW ,ELG ,ELG ,ELG ,ELG ,ELG ,ELG ,ELG
+$59$5'7+(2/2*,&$/5(9,(:
WKHPDQGWDNHWKHPEDFNIURPZKHUHWKH\KDGIDOOHQµ6LPHRQWHOOVKLVIROORZHUV HFKRLQJHXFKDULVWLFODQJXDJH´(DWIURPZKDWWKH/RUGKDVJLYHQWR\RXµ7KH ZRUPVIURP6LPHRQ·VSXWULGZRXQGKDYHEHFRPHWKHHXFKDULVWLFHOHPHQWVWKH ERG\DQGEORRGRI&KULVW7KLVOLYLQJGHDWKDWRSDSLOODUWUDQVIRUPV6LPHRQLQWR &KULVWKLPVHOIZKRVHERG\LVJLYHQWRKLVIROORZHUVWRHDW,WZRXOGVHHPWKDWIRU $QWRQLXV6LPHRQ·VVW\OLWLVPLVLQGHHGDNLQGRILPLWDWLR&KULVWLRUSHUKDSVHYHQ DNLQGRILPLWDWLRFUXFLV )LQDOO\WKLVLPLWDWLRFUXFLVÀQGVVRPHFRUURERUDWLRQLQ$QWRQLXV·VGHVFULSWLRQ RI6LPHRQ·VGHDWKDWRSKLVSLOODU 6XFK D FURZG ZDV JDWKHULQJ WKDW WKH PRXQWDLQ FRXOG QRW EH VHHQ EHFDXVH RIWKHLUQXPEHUVDQGWKHVPRNHIURPWKHLULQFHQVHWKHZD[WDSHUVDQGWKH LQQXPHUDEOH EXUQLQJ ODPSV 7KH VRXQG RI WKH ZHHSLQJ PHQ ZRPHQ DQG FKLOGUHQ FRXOG EH KHDUG DW D JUHDW GLVWDQFH DQG WKH ZKROH PRXQWDLQ ZDV VKDNLQJIURPWKHVFUHHFKLQJRIWKHELUGVZKLFKJDWKHUHGDQGFLUFOHGURXQG WKHHQFORVXUHRIWKHVDLQW
6SHFLÀFDOO\WKHPRXQWDLQVKDNLQJLVUHPLQLVFHQWRIWKHGHVFULSWLRQLQ0DWW RIKRZZKHQ-HVXV´\LHOGHGXSKLVVSLULWµRQWKHFURVV´WKHHDUWKVKRRNDQGWKH URFNVZHUHVSOLWµ1RULV$QWRQLXVDORQHLQPDNLQJWKHFRQQHFWLRQEHWZHHQWKH GHDWKRI6LPHRQDQGWKHGHDWKRI-HVXV,QKLVKRPLO\RQ6LPHRQ-DFRERI6HUXJ ZULWHVWKDWZKHQWKHVDLQWGLHG´WKHURFNVLQWKHZDOOVZHSWZLWK>KLVGLVFLSOHV@DQG WKHPRXQWDLQVTXDNHG&UHDWLRQVWRRGVWLOODQGJURDQHGLQSDLQµ 7KH6\ULDFYLWD 7KH 6\ULDF YLWD SRUWUD\V 6LPHRQ DV D UXVWLF VKHSKHUG XQUHDG LQ VFULSWXUHV DQG XQOHDUQHGLQUHOLJLRQ$IWHUKLVFRQYHUVLRQLQFKXUFKKHUHFHLYHVDYLVLRQZKLOH WHQGLQJWRKLVVKHHS´+HVDZDPDQFRPHDQGVWDQGDERYHKLP³KHORRNHGOLNH OLJKWQLQJKLVRXWHUJDUPHQWVZHUHOLNHWKHVXQDQGKLVIDFHOLNHUD\VRIÀUHµ7KLV PDQRIOLJKWOHDGV6LPHRQXSDPRXQWDLQZKHUHKHLVVXHVWKHLPSHUDWLYH´7DNH DQGEXLOGµ6LPHRQSOHDGVLJQRUDQFHDQGVRWKHPDQVKRZV6LPHRQKRZWREXLOG DVDQFWXDU\LQZKLFKWRZRUVKLS*RG³DFRYHUHGVDQFWXDU\RIVWRQHRSHQWRWKH ZHVW7KLVYLVLRQLVUHPLQLVFHQWRIWKHGUHDP7KHRGRUHWPHQWLRQVH[FHSWWKDWLQ WKDWGUHDPDQDQJHOFRPPDQGVWKHVDLQWWRGLJEHIRUHKHEXLOGV
,ELG ,ELG ,ELG ´+RPLO\ RQ 6LPHRQ WKH 6W\OLWHµ LQ $VFHWLF %HKDYLRU LQ *UHFR5RPDQ $QWLTXLW\ $ 6RXUFHERRNHG9LQFHQW/:LPEXVKWUDQV6XVDQ$VKEURRN+DUYH\0LQQHDSROLV0LQQ)RUWUHVV ²6HHDOVR6XVDQ$VKEURRN+DUYH\´7KH0HPRU\DQG0HDQLQJRID6DLQW7ZR+RPLOLHV RQ6LPHRQ6W\OLWHVµLQ$UDP$)HVWVFKULIWIRU'U6HEDVWLDQ%URFN ² 6\ULDF ,ELG
&+$5/(6067$1*
,QWKH6\ULDFYLWD6LPHRQ·VGLJJLQJFRPHVODWHUZKHQKHKDVDOUHDG\MRLQHGWKH PRQDVWHU\:HDUHWROGWKDW´>6LPHRQ@GXJKLPVHOIDVSRWLQDFRUQHURIWKHJDUGHQ XSWRKLVFKHVW$OOVXPPHUKHVWRRGLQLWLQWKHKRWDQGVXOWU\ZHDWKHUDQGLWZDV OLNHDÀUHµ2QDQRWKHURFFDVLRQDIWHUVRPHRIKLVIHOORZPRQNVZHUHVWLUUHGWR MHDORXV\E\WKHGHYLO6LPHRQ´ZHQWRIIDQGGXJLQWKHFRUQHUZKHUHWKHZRRGZDV SODFHGDQGFRQÀQHGKLPVHOI³WKHEUHWKUHQWKRXJKWWKDWKHKDGUHDOO\OHIW%XWDIWHU WKLUW\GD\VRQHRIWKRVHDSSRLQWHGZHHNO\ZHQWWREULQJWKHZRRGDQGKHGXJDQG EURXJKWXSWKHZDUULRUKHIRXQGKLPVKXWXSDQGVWDQGLQJLQWKHFRUQHUµ6DWDQ DOVRDWWDFNV6LPHRQGLUHFWO\LQWKHIRUPRI´WKLFNKD]HZKLFKVXGGHQO\VWUXFNKLV H\HVDQGWRRNZD\KLVYLVLRQµ6LPHRQDVNVKLVEURWKHUV´7DNHPHGRZQWRWKH VHSXOFKHUµDIWHUWKLUW\GD\VXQGHUJURXQGDÁDVKRIOLJKWQLQJOLJKWVXSWKHVHSXOFKHU ZKHUHKHLVVWD\LQJDQGUHVWRUHVKLVYLVLRQ,QWKHVHLQVWDQFHV6LPHRQLVEHJLQQLQJ WRH[SHULPHQWZLWKDVRORDVFHWLFLVPFHQWHUHGRQGLJJLQJDQGGHVFHQGLQJ 7KHVHH[SHULPHQWVIRUPWKHEDFNGURSWRKLVÀQDOGHVFHQW7KRXJKDFFRUGLQJ WR7KHRGRUHW6LPHRQOHDYHVWKHPRQDVWHU\DQGORZHUVKLPVHOILQWRDGU\FLVWHUQ DQGDFFRUGLQJWR$QWRQLXVLWLVDQHPSW\ZHOOWKH6\ULDFYLWDWHOOVRIKRZ6LPHRQ VRXJKWRXWD´FDYHYHU\GDUNDQGIRUHERGLQJµLQZKLFKWRVSHQG/HQW%XWDIWHU /HQWZKHQ6LPHRQGRHVQRWUHWXUQWKHDEERWVXVSHFWVWKDWKLV\RXQJFKDUJHLV OLYLQJLQWKHQHDUE\FDYHDQGVRVHQGVKLVPRQNVWRUHWULHYHKLP7KH6\ULDFYLWD DOVRJLYHVXVWKHIXOOHVWDFFRXQWRIZKDW6LPHRQZDVGRLQJXQGHUJURXQG$VLQ $QWRQLXV·V DFFRXQW WKH FDYH LV ÀOOHG ZLWK ´VHUSHQWV DQG YLSHUVµ EXW DOVR ZLWK ´OHRSDUGVDQGZROYHVµ6DWDQDQGWKHEHDVWV@EXWZDVFRPSOHWHO\ RFFXSLHGZLWKKHDYHQ³KHZRXOGPDNHWKHVLJQRIWKHFURVVRQKLVEUHDVWDQG RQKLVIRUHKHDGDQGVHQGWKHPVFDPSHULQJIRUWKHLUOLYHV6XGGHQO\>6DWDQ@ GLVDSSHDUHGDQG>WKHEHDVWV@YDQLVKHGOLNHVPRNHEHIRUHWKHZLQGDQGPXFK OLJKWVKRQHLQVLGHWKHFDYH
-XVWDVLQWKHHSLVRGHLQWKHVHSXOFKHUWKLVÀQDOGHVFHQWLQWRWKHFDYHSURYLGHVDQ RSSRUWXQLW\IRUWKHGLYLQHOLJKWWRYDQTXLVKWKHGHYLORU6DWDQ*LYHQWKLVOLWDQ\RI GLJJLQJVDQGGHVFHQWVLWLVSHUKDSVVLJQLÀFDQWWKDWWKHDEERWXQGHUSUHVVXUHIURP WKHMHDORXVPRQNV GLVPLVVHV6LPHRQZLWKWKHVHZRUGV´$ULVHJRZKHUHYHUWKH /RUGLVSUHSDULQJIRU\RXµ,QIDFWWKLVGLVPLVVDOPDUNVWKHHQGRIWKHVXEWHUUDQHDQ VWDJHRI6LPHRQ·VDVFHWLFLVPDQGLQDXJXUDWHVDEULHIWHUUHVWULDOLQWHUUHJQXP
6\ULDF ,ELG ,ELG ,ELG ,ELG ,ELG ,ELG ,ELG>HPSKDVLVDGGHG@
+$59$5'7+(2/2*,&$/5(9,(:
6LPHRQPRYHVRQWRWKHYLOODJHRI7HOQHVKHDQGWKHQHDUE\PRQDVWHU\RI0DULV EDU%DUDWKRQ7KHPRQNVEXLOGIRU6LPHRQ´DQHQFORVXUHRQWKHPRXQWDLQµZKLFK LQDQHIIRUWWRLQWHQVLI\KLVDVFHWLFSUDFWLFHKHODWHUWHDUVGRZQVRDVWRVWDQGRSHQO\ GD\DQGQLJKWIRUDOOWRVHH/DWHUKHGHFLGHVWRVKXWKLPVHOIXSIRUWKUHH\HDUV DOWKRXJKKLVIULHQGVFRQYLQFHKLPWRUHGXFHKLVFRQÀQHPHQWWRMXVWD\HDUDQGD KDOI+HFKDLQVKLPVHOILQSODFHMXVWDV7KHRGRUHWGHVFULEHVDOWKRXJKLQWKH6\ULDF YLWDKHVHHPVWRKDYHDURRIRYHUKLVKHDGGXULQJWKLVSURWUDFWHGLPSULVRQPHQW $IWHUWKLVWHUUHVWULDOLQWHUUHJQXP6LPHRQPRXQWVKLVSLOODUDWÀUVWOLWWOHPRUHWKDQ D´VWRQHµWZRFXELWVKLJK$VLQRWKHUYHUVLRQVWKLVVWRQHEHFRPHVDQLQFUHDVLQJO\ WDOOSLOODUHOHYHQVHYHQWHHQWZHQW\WZRDQGÀQDOO\IRUW\FXELWV 5HFDOOWKDW7KHRGRUHWVHHPVWRZDIÁHEHWZHHQH[SODQDWLRQVIRUWKHSLOODU:DV LWDSUDFWLFDOPHDVXUHWRHVFDSHWKHFURZGVRUDQH[WUDRUGLQDU\GLVSHQVDWLRQIURP DERYH"7KHUHLVQRVXFKYDFLOODWLRQLQWKH6\ULDFYLWDZKRVHDSRORJLDEHJLQVZLWK WKHVHTXHVWLRQV´:KDWPDGHLWQHFHVVDU\RUUHTXLUHGWKDWKHPRXQWRQDSLOODU" &RXOGKHQRWSOHDVHRXU/RUGRQWKHJURXQGRUDWPRVWLQWKDWFRUQHU"µ,QGHHGKH FRXOGKDYHWKHDQRQ\PRXVKDJLRJUDSKHUDQVZHUVEXW*RGRUGDLQVIRUKLVHOHFW RQHDUWKPRGHVDQGPDQQHUVRISUHDFKLQJÀWWLQJWRHDFKDJHDQGSODFH,QWKHÀIWK FHQWXU\LWVHHPV*RG´VDZKLVFUHDWLRQDVLIDVOHHSµDQGVRVHQW6LPHRQZKR´E\ KLVDIÁLFWLRQµZRXOGDZDNHQWKHZRUOGIURPLWVKHDY\WRUSRU7KLVLVFRQÀUPHG E\DYLVLRQLQZKLFK6LPHRQLVYLVLWHGE\DQDQJHOZKRIRUWKUHHGD\VVWRRGDWRSD VWRQHWKUHHFXELWVKLJKRQZKLFK6LPHRQXVHGWREXUQLQFHQVH7KHDQJHOSHUIRUPV KLVSUD\HUVVWDQGLQJDQGNQHHOLQJDQGZLWKDVWHUQORRNFRQYLQFHV6LPHRQWKDWKH VKRXOGIROORZVXLW6LPHRQLV´KDSS\DQGFRQWHQWVRWRVWDQGµIRUWKUHHPRQWKV XQWLOKHKDVDSURSHUFROXPQPDGHIRUKLPVHOI/DWHUZKHQ6LPHRQLVSODQQLQJ WRLQFUHDVHWKHKHLJKWRIKLVSLOODUKHDJDLQLVYLVLWHGE\DQDQJHOZKRLQVWUXFWV KLPWRPDNHKLVQHZSLOODUIRUW\FXELWVKLJKDQGLQWKUHHVHFWLRQV´IRUWKHVDNHRI WKH7ULQLW\µ/LNH7KHRGRUHWWKHDXWKRURIWKH6\ULDFYLWDSUHVHQWVVW\OLWLVPDVD GLYLQHO\RUGDLQHGLQQRYDWLRQLQGHYRWLRQDOSUDFWLFH $YLVLRQHDUOLHULQWKHQDUUDWLYHPD\KHOSXVFRQQHFWWKHIXULRXVGLJJLQJDQG GHVFHQGLQJ6LPHRQGRHVHDUO\LQKLVVRORDVFHWLFFDUHHUZLWKKLVODWHUDVFHQWRIWKH SLOODU%HIRUHKHFRQÀQHVKLPVHOILQKLVHQFORVXUH6LPHRQUHFHLYHVDYLVLRQWKDW KLVIULHQG0DU6KHPVKLZLOOGLHZKLOHKHLVVHTXHVWHUHGDZD\IRU/HQW7KHYLVLRQ GHVHUYHVWREHTXRWHGLQIXOO
6\ULDF ,ELG ,ELG 6HH 6XVDQ$VKEURRN +DUYH\ ´2OIDFWRU\ .QRZLQJ 6LJQV RI 6PHOO LQ WKH YLWDH RI 6LPHRQ 6W\OLWHVµLQ$IWHU%DUGDLVDQ6WXGLHVRQ&RQWLQXLW\DQG&KDQJHLQ6\ULDF&KULVWLDQLW\LQ+RQRXURI 3URIHVVRU+DQ-:'ULMYHUVHG*-5HLQLQNDQG$&.OXJNLVW/HXYHQ3HHWHUV ² VHH DOVR KHU PRUH UHFHQW FRPSUHKHQVLYH VWXG\ 6FHQWLQJ 6DOYDWLRQ $QFLHQW &KULVWLDQLW\ DQG WKH 2OIDFWRU\,PDJLQDWLRQ%HUNHOH\&DOLI8QLYHUVLW\RI&DOLIRUQLD 6\ULDF ,ELG
&+$5/(6067$1*
)RU >6LPHRQ@ KDG WKLV YLVLRQ WKHUH ZDV D WUHH EHDULQJ PDQ\ IUXLWV LW ZDV EHDXWLIXOWRORRNDWDQGLWVWRSEUDQFKHVZHUHDGRUQHGDQGORDGHGZLWKIUXLW ,WV OHDYHV GHOLJKWHG WKH H\H 1RZ WKHUH ZDV D EUDQFK VSURXWLQJ XS IURP LW $ORQJFDPHDVSOHQGLGORRNLQJPDQOHDGLQJIRXUPHQFDUU\LQJD[HVLQWKHLU KDQGV+HVDLGWRWKHP¶&XWWKDWEUDQFKRIIWKDWWUHHIRULWLVJHWWLQJELJDQG SUHYHQWLQJ D ORW RI IUXLW· 1RZ WKHUH ZDV DQRWKHU PDQ VWDQGLQJ EHVLGH KLP DQGKHDOVRZDVEHDXWLIXOO\GUHVVHGDQGJRRGWRORRNDW+HVDLGWRWKHÀUVW PDQ¶/HWXVPDNHLWDQRWKHUFRPSDQLRQ·%XWKHDQVZHUHGDQGVDLGWRKLP ¶,WGRHVQRWQHHGDFRPSDQLRQ,WDORQHLVVXIÀFLHQWERWKIRULQVLGHUVDQGRXW VLGHUV·:KHQWKHEUDQFKKDGEHHQFXWRIIIURPWKHWUHHWKHPDQRUGHUHGWKH IRXUPHQVD\LQJ¶1RZGLJGRZQGHHSDQGSXWWKHURRWRIWKHWUHHRQDURFN 7KHQÀOOLQWKHVLGHVDQGVKRUHLWXSVWURQJO\VRWKDWLWZLOOQRWEHVKDNHQ )RU LW ZLOO EHDU PXFK IUXLW DQG VWURQJ ZLQGV DQG WHPSHVWV DQG SRZHUIXO VWRUPVZLOOEHDWRQLW·2QFHWKH\KDGJRQHGHHSDQGVHWDQGVKRUHGLWVURRW DW WKDW PRPHQW LW SXW IRUWK QHZ EXGV DQG OX[XULRXV JURZWK ,WV YLQHV JUHZ VWURQJRQDOOVLGHVDQGLWERUHDKXQGUHGWLPHVPRUHWKDQEHIRUH)URPXQGHU WKHURRWRIWKDWWUHHDVWURQJKHDY\ÁRZRIZDWHUVSRXWHGIRUWKLWFRYHUHG WKH PRXQWDLQV DQG WKH KLOOV DQG JXVKHG IRUWK DQG VSUHDG RXW RQ DOO VLGHV 6XGGHQO\PXFKDQLPDOOLIHDSSHDUHGDQGLQQXPHUDEOHELUGVRIDOOVSHFLHVDQG W\SHVERWKODUJHDQGVPDOO7KH\ZHUHDUULYLQJDQGFRPLQJIURPDOOTXDUWHUV HDWLQJIURPWKHIUXLWRIWKDWWUHHDQGGULQNLQJIURPWKHVSULQJ$VPDQ\DVDWH DQGGUDQNIURPLWVRPXFKPRUHWKHIUXLWVRIWKHWUHHLQFUHDVHGLQERXQGVDQG WKHVSULQJZDVVWURQJDQGYLJRURXV1RZWKHWUHHZDVWKHVDLQWWKHEUDQFK FXWRIIKLVEURWKHU0DU6KHPVKLZKRGLHGDVKHKDGVDLGGXULQJWKDW/HQW
+HUHLWLVWKHEHDXWLIXOPDQDQGKLVFRPSDQLRQVDQJHOVSUHVXPDEO\ ZKRGLJWR WKHURRWRIWKHWUHH³ZKLFKKHUHLVWKHVDLQWKLPVHOI³DQGHVWDEOLVKLWXSRQDÀUP URFNIRXQGDWLRQ,QWKHHDUOLHUHSLVRGHVIURPWKH6\ULDFYLWDKRZHYHULWLVWKH VDLQWZKRGLJVDQGGHVFHQGV 7KH6\ULDFYLWDFKDUWVDSURJUHVVLRQRI6LPHRQ·VDVFHWLFLVPDVGR7KHRGRUHW DQG$QWRQLXVIURPRQHFHQWHUHGRQGLJJLQJDQGGHVFHQGLQJWRRQHFHQWHUHGRQ EXLOGLQJDQGDVFHQGLQJ7KLVYLVLRQVXJJHVWVWKDWWKHSURJUHVVLRQLVQRWDFFLGHQWDO 7KHGHVFHQWDQGWKHDVFHQWVKRXOGEHXQGHUVWRRGWRJHWKHUFRPSOHPHQWDU\MXVW DVDWUHHUHTXLUHVURRWVÀUPO\JURXQGHGLILWLVWRZHDWKHUVWRUPV&RGHGLQWKLV YLVLRQLVDQLQWHUSUHWDWLRQRIZKDW6LPHRQLVXSWRRUGRZQWRDVLWZHUH ZKHQ KHGLJVKHLVSUHSDULQJKLPVHOIIRUWKHDGYHUVDULHVKHZLOOIDFHZKHQKHLVRQKLV SUHFDULRXVSLOODU &XULRXVO\WKLVYLVLRQÀJXUHVWKHVDLQWDVDIHUWLOHWUHHRUPRUHSUHFLVHO\DVDWUHH WKDWFRPHVLQWRIXOOEORRPRQFHLWLVSUXQHGDQGLWURRWVDUHÀUPO\JURXQGHGDWUHH WKDWEHDUVHQRXJKIUXLWDQGJXVKHVHQRXJKZDWHUWRVXVWDLQWKHHQWLUHVXUURXQGLQJ ÁRUDDQGIDXQD7KLVZRXOGVHHPWRVWUHQJWKHQ:ULJKW·VKDQGZKHQKHDUJXHVWKDW 6LPHRQ·VLQWHUSUHWHUVYLHZHGKLVSLOODUDVWKHWUXH7UHHRI/LIH³DFRPPRQSODFH V\PEROVRKHDVVHUWVLQ1HDU(DVWHUQSLHWLHV7KH6\ULDFYLWDPDNHVWKLVSRLQW H[SOLFLWO\$QGWKHVL[WKFHQWXU\KLVWRULDQ(YDJULXV6FKRODVWLFXVZKRYLVLWHGWKH
6\ULDF>HPSKDVLVDGGHG@
+$59$5'7+(2/2*,&$/5(9,(:
FXOWRI6LPHRQWKDWKDGJURZQXSDURXQGKLVHPSW\SLOODUUHPDUNVKRZWKHORFDOV ZRXOGFLUFXPDPEXODWHKLVSLOODUZLWKWKHLUOLYHVWRFNDVLILWZHUHDVRUWRI7UHHRI /LIHIUHHO\EHVWRZLQJIHUWLOLW\
Q0LUFHD(OLDGHDQGWKH$[LV0XQGL 6FKRODUVKLSRQ6LPHRQ·VVW\OLWLVPKDVSUHIHUUHGWRFRQVLGHUKLVSLOODULQLVRODWLRQ IURPWKHHDUOLHUDVFHWLFFDUHHUKHXQGHUWDNHVXSRQOHDYLQJWKHPRQDVWHU\SHUKDSV EHFDXVHWKHSLOODULVSHUFHLYHGDVWKHUHDOLQQRYDWLRQLQKLVDVFHWLFLVPDQGDVVXFK EHJVH[SODQDWLRQ%XWDOOWKUHHYLWDHDJUHHWKDWWKHSLOODULVVLPSO\WKHÀQDOPRYHPHQW LQDVHULHVRISHFXOLDUDVFHWLFSUDFWLFHVSURJUHVVLQJIURPGLJJLQJDQGGHVFHQGLQJWR EXLOGLQJDQGDVFHQGLQJ,QDOOWKUHHYLWDH6LPHRQ·VGHVFHQWLQWRDVXEWHUUDQHDQVSDFH FLVWHUQZHOOFDYHDPRQJRWKHUV SUHSDUHVWKHZD\IRUKLVDVFHQWWRDVXSHUWHUUDQHDQ VSDFHDSLOODURIHYHULQFUHDVLQJKHLJKW %HWZHHQKLVGHYRWLRQVEHORZDQGDERYH JURXQG6LPHRQVSHQGV\HDUVRQWKHKXPDQSODQHLQDVPDOOKXWRQDPRXQWDLQLQ DQRSHQDLUULQJRIVWRQHVFKDLQHGLQSODFHVRWKDWKHKDVRQO\WKHDUHDRIKLVFLUFOH LQZKLFKWRPRYHDQGRWKHUV%\GLJJLQJKROHVDQGEXLOGLQJSLOODUVRYHUWKHFRXUVH RIKLVVRORDVFHWLFFDUHHU6LPHRQLQHIIHFWUXQVDFRQWLQXRXVVKDIWIURPEHORZWKH HDUWKWRWKHVXUIDFHRIWKHHDUWKWRWKHVN\,QVKRUWKHHVWDEOLVKHVDQD[LVPXQGL 6LPHRQ·VVW\OLWLVPZRXOGWKHQVHHPWRFRUUHVSRQGZLWKWKHDFFRXQWRIVDFUHG VSDFHDQGWKHD[LVPXQGLIRUZDUGHGLQWKHPLGWZHQWLHWKFHQWXU\E\WKH5RPDQLDQ KLVWRULDQ RI UHOLJLRQV 0LUFHD (OLDGH *LYHQ WKH REYLRXV FRQQHFWLRQ EHWZHHQ WKH SKHQRPHQRQ RI VW\OLWLVP DQG WKH FHQWUDOLW\ RI WKH SLOODU LQ (OLDGH·V DQDO\VHV RI V\PEROLFVSDFHLWLVVXUSULVLQJWKDWVFKRODUVKDYHQRWHQJDJHGKLPPRUHGLUHFWO\ RQWKLVSRLQW(OLDGHKRZHYHUGRHVVHHPWROXUNLQWKHPDUJLQVRIVFKRODUVKLSRQ 6LPHRQ,QKLVLQWURGXFWLRQWRWKHYLWDHRI6LPHRQ'RUDQDUJXHVWKDWWKHVW\OLWHVKRXOG EHXQGHUVWRRGZLWKLQWKHWUDGLWLRQRIWKHVRFDOOHG´VWDWLRQDU\µVDLQWVWKRVHZKRVH SHFXOLDUGHYRWLRQDOSUDFWLFHLVWRVWDQGPRWLRQOHVV7KLVLV'RUDQQRWHVD´FRPPRQ VKDPDQLVWLFH[SHULHQFHµDQGVRGLUHFWVWKHUHDGHUWR(OLDGH·VZRUNRQVKDPDQLVP
´>7@KHSHDVDQWVRIWKHQHLJKERUKRRGZRXOGGDQFHURXQGWKHSLOODUDQGFRPSDVVLWDERXWZLWK WKHLUEHDVWVRIEXUGHQWRHQVXUHJRRGOXFNµ(FFOHVLDVWLFDO+LVWRU\ FLWHGLQ:ULJKW´+HULWDJH RIWKH6W\OLWHVµ +5 ,ELG 'RUDQ VHHV WZR UHOHYDQW OLQHDJHV IRU WKH VWDWLRQDU\ VDLQWV VXFK DV 6LPHRQ WKH ´VRQV DQGGDXJKWHUVRIWKHFRYHQDQWµEQD\EQDWT\kPk DIRUPRIDVFHWLFLVPSHFXOLDUWRHDUO\6\ULDF &KULVWLDQLW\ZKRVHQDPHGHULYHVIURPWKHURRWTZPPHDQLQJ´WRVWDQGµ'RUDQ/LYHVRI6LPHRQ 6W\OLWH² 6HH6LGQH\+*ULIÀWK´$VFHWLFLVPLQWKH&KXUFKRI6\ULDWKH+HUPHQHXWLFVRI (DUO\6\ULDQ0RQDVWLFLVPµLQ$VFHWLFLVPHG9LQFHQW/:LPEXVKDQG5LFKDUG9DODQWDVLV1HZ 7KRPDV5K\PHU@LVDQHQWLUHO\SRSXODUEDOODGDVWRVW\OHDQGPXVWEH RIFRQVLGHUDEOHDJHWKRXJKWKHHDUOLHVWYHUVLRQ$ FDQEHWUDFHGDWIXUWKHVWRQO\LQWRWKHÀUVWKDOI RIWKH>HLJKWHHQWK@FHQWXU\µ3RSXODU%DOODGVFRO
+$59$5'7+(2/2*,&$/5(9,(:
VKRXOGQRWWKHQSURFHHGWRQDUUDWHDQHURWLFHQFRXQWHUEHWZHHQWZRXQPDUULHGQHDU VWUDQJHUV%XWWKLVMX[WDSRVLWLRQRISLHW\DQGXQDEDVKHGHURWLFLVPFDQUHDGLO\EH SDUDOOHOHGLQPHGLHYDOWH[WVDQGLVRQHIXUWKHULQGLFDWLRQWKDW´7KRPDV5K\PHUµ LVLQLWVRULJLQDQROGEDOODG2QFHWKHTXHHQDQG7KRPDVDUHORYHUVWKHTXHHQKDV DKROGXSRQ7KRPDVDQGWDNHVKLPRQDMRXUQH\EHWZHHQWKHZRUOGV 6KHWXUQHGDERXWKHUPLONZKLWHVWHHG $QGWRRN7UXH7KRPDVXSEHKLQG $QGD\HZKHQHHUKHUEULGOHUDQJ 7KHVWHHGÁHZVZLIWHUWKDQWKHZLQG )RUIRUW\GD\VDQGIRUW\QLJKWV +HZDGHWKURUHGEOXGHWRWKHNQHH $QGKHVDZQHLWKHUVXQQRUPRRQ %XWKHDUGWKHURDULQJRIWKHVHDVWDQ]DV²
6WDQ]DVHYHQWKHSDVVDJHWKURXJKWKHEORRGDQGZDWHUZD\WRWKH2WKHU:RUOG LVUHVLWXDWHGLQWKHEDOODGE\&KLOGLQWKDWLQWKHPDQXVFULSWWKLVVWDQ]DRFFXUVDV VWDQ]DÀIWHHQ,ZRXOGDFFHSW&KLOG·VHPHQGDWLRQRIWKHRUGHURIWKHVWDQ]DVIRU DYDULHW\RIUHDVRQV,QWKHÀUVWSODFHWKHDXWKRULW\RIDJUHDWHGLWRURIEDOODGVLV QRWWREHOLJKWO\GLVUHJDUGHGDQGLQGHHGWKHVWDQ]DLQTXHVWLRQPDNHVPXFKEHWWHU QDUUDWLYHVHQVHDVVWDQ]DVHYHQWKDQLWZRXOGDVVWDQ]DÀIWHHQ6HFRQGO\VLPLODU VWDQ]DVRFFXUDWWKLVMXQFWXUHLQWKHQDUUDWLYHLQRWKHUYHUVLRQVRIWKHQDUUDWLYH 7KHODUJHUDUJXPHQWLVWKDWDSDVVDJHWKURXJKDQH[WUDRUGLQDU\ZDWHUEDUULHUDV SDUWRIWKHMRXUQH\WRWKHRWKHUZRUOGPDNHVJRRGVHQVHDQGLVUHDGLO\SDUDOOHOHGLQ PHGLHYDO2WKHUZRUOGOLWHUDWXUH )RUWKHKHURWRSDVVWKURXJKVXFKDEDUULHURQWKHUHWXUQIURPWKHRWKHUZRUOGLV XQSDUDOOHOHGDQGSUREOHPDWLFLQDYDULHW\RIZD\V$WDQ\UDWHDOWKRXJKWKHQRWLRQ RIDSDVVDJHWKURXJKZDWHURQDMRXUQH\WRWKH2WKHU:RUOGLVDFRPPRQWKHPH LQERWKPHGLHYDODQGRWKHUOLWHUDWXUHV³RQHWKLQNVRIWKHULYHU6W\[LQ&ODVVLFDO P\WKRORJ\RUWKHPHWDSKRULFDOXVHRIWKHULYHU-RUGDQLQ$PHULFDQWUDGLWLRQRI VSLULWXDOV³WKHVHVWDQ]DVLQ7KRPDV5K\PHUFRPSUHVVWZR%LEOLFDOÀJXUHVWRJHWKHU 7KLV SDVVDJH WKURXJK ZDWHU DQG EORRG ODVWV IRU IRUW\ GD\V DQG QLJKWV WKH WLPH VHTXHQFHDVVRFLDWHGZLWK1RDK·VÁRRGDQGLVDSDVVDJHWKURXJKDUHGEORRG\VHD ,ZRXOGVXJJHVWWKDWWKHUHGEORRGWKURXJKZKLFK7KRPDVDQGKLVODG\SDVVHYRNHV WKH5HG6HDWKRXJKZKLFK0RVHVOHGWKHFKLOGUHQRI,VUDHO7KHQRWLRQWKDWWKH5HG 6HDZDVDEORRG\VHDLVZHOODWWHVWHGLQPHGLHYDO&KULVWLDQLW\DQGLVLQGHHGRQHRI WKHGRPLQDQWPHWDSKRUVLQWKH2(SRHWLF([RGXV$QGZKDWLVQRWHZRUWK\DERXW
6HH&KLOG3RSXODU%DOODGFROIRUFRPPHQWDU\ 6HH+RZDUG5ROOLQ3DWFK7KH2WKHU:RUOG$FFRUGLQJWR'HVFULSWLRQVLQ0HGLHYDO/LWHUDWXUH &DPEULGJH+DUYDUG8QLYHUVLW\3UHVVUHSU1HZDV@EDSWLVPUHGGHQHGZLWKWKHEORRGRI&KULVW &&6/+HLQULFXV$XWLVVLGRUHQLV +RPLOLDH SHU FLUFXOXP DQQL ´SDVFKD LG HVW WUDQVLWXV GLFHEDWXU TXRG HDGHP QRFWH UXEUXP PDUHWUDQVLHUXQWVXEPHUVR3KDUDRQHHW$HJ\SWLLVSUDHVLJQDQWHVEDSWLVPXPURVHR&KULVWLVDQJXLQH UXEULFDWXPµ3DVKDWKDWLVSDVVLQJRYHULVVRFDOOHGEHFDXVHRQWKDWVDPHQLJKWWKH\SDVVWKURXJK WKH5HG6HDKDYLQJGURZQHG3KDUDRKDQGWKH(J\SWLDQVSUHVLJQLI\LQJEDSWLVPUHGGHQHGZLWK WKH URVH FRORUHG EORRG RI &KULVW &&&0 ,PDJHU\ RI WKLV VRUW ZRXOG SUHVXPDEO\ EH GLVVHPLQDWHGLQWKH´IRONµFRPPXQLW\WKURXJKWKHPHGLXPRIYHUQDFXODUKRPLOLHV
+$59$5'7+(2/2*,&$/5(9,(:
7KDWLVWKHSDWKRIZLFNHGQHVV 7KRVRPHFDOOLWWKHURDGWRKHDYHQ ¶$QGVHHQRW\HWKDWERQQ\URDG :KLFKZLQGVDERXWWKHIHUQLHEUDH" 7KDWLVWKHURDGWRIDLU(OÁDQG :KH>UH@\RXDQG,WKLVQLJKWPDXQJDHVWDQ]DV²
2QHLPPHGLDWHFRPPHQWXSRQWKLVEDOODGQDUUDWLYHDQGLWVLPSOLFDWLRQLVWKDWLW ERWKDIÀUPVDQGGHQLHVWUDGLWLRQDO&KULVWLDQWKRXJKWDERXWFRVPRORJ\7KHQDUURZ URDGWRKHDYHQDQGWKHEURDGURDGWRKHOODUHKRPLOHWLFFOLFKpVZKLFKGHULYHIURP WKH6HUPRQRQWKH0RXQWDQGVSHFLÀFDOO\IURP0DWW7KLVÀJXUHLVDJUHDW FRPPRQSODFH LQ ERWK PHGLHYDO &DWKROLF DQG 6FRWV 3URWHVWDQW SUHDFKLQJ EXW WUDGLWLRQDOO\LWLVDELQDU\ÀJXUH7KHUHDUHWZRFKRLFHVDQGQHLWKHURIWKHPLV JRRGRUDWOHDVWLPPHGLDWHO\DWWUDFWLYH$VWKLVÀJXUHZDVFRQYHQWLRQDOO\FRQVWUXHG D&KULVWLDQKDVWKHFKRLFHEHWZHHQDVFHVLVDQGVHOIGHQLDORQWKHRQHKDQGDQG SOHDVXUH WKDW XOWLPDWHO\ OHDGV WR GHVWUXFWLRQ RQ WKH RWKHU 7KLV LPDJH UHÁHFWV HVVHQWLDOO\ ELQDU\ VWUXFWXUHV WKDW³IURP RQH SHUVSHFWLYH DW OHDVW³DUH LPSOLFLW LQ PHGLHYDO DQG HDUO\ PRGHUQ &KULVWLDQ WKRXJKW 7KHUH LV *RG DQG WKH GHYLO KHDYHQDQGKHOOJRRGDQGHYLOVLQDQGULJKWHRXVQHVVDQGXOWLPDWHO\*RGDQG+LV FUHDWLRQ7KHVHELQDULHVVHHPDEVROXWHLQWKLVWUDGLWLRQWKH\ZRXOGVHHPWRSHUPLW QRPHGLDWLRQ7KH5RPDQ&DWKROLFGRJPDRISXUJDWRU\RIFRXUVHSUHVXPHVD PHGLDWHUHDOPEXWSXUJDWRU\LVDWHPSRUDOO\OLPLWHGUHDOP:KHQWKHODVWVDYHG EXWVLQIXOVRXOVKDYHEHHQ´SXUJHGµRIWKHLUVLQSXUJDWRU\ZLOOFHDVHWREH $FDVHWKDWWKHWULSDUWLWLRQH[SOLFLWLQ´7KRPDV5K\PHUµLVUHODWHG³DOWKRXJK SUREDEO\QRWJHQHWLFDOO\³WRPHGLHYDO&DWKROLFWHDFKLQJDERXWSXUJDWRU\FRXOG EHDUJXHGEXWWKHSUREOHPRIWKHKLVWRULFDORULJLQVRIWKHLGHRORJ\RIWKHEDOODG LVDGLIÀFXOWRQHDQGRQHWKDW,ZRXOGSUHIHUWRLJQRUHIRUWKHPRPHQW7KHPRVW LPPHGLDWHTXHVWLRQLVZKDWDUHWKHLPSOLFDWLRQVRIWKLVH[WUDRUGLQDU\QDUUDWLYH DQGFRVPRORJLFDOYLVLRQ"7KHÀUVWSRLQWWRREVHUYHLVWKDWPXFKRIWKHFRQWHQW RIWKHEDOODGLVFRQYHQWLRQDOO\&KULVWLDQ7KHEURDGURDGWRGHVWUXFWLRQDQGWKH QDUURZURDGWRKHDYHQDUHGHHSO\FRQYHQWLRQDOLPDJHVDQGHYHU\HSLVRGHLQWKH QDUUDWLYHHFKRHVRUDOOXGHVWR&KULVWLDQÀJXUHVRUVLWHV7KHEDOODGEHJLQVZLWKDQ HYRFDWLRQRIWKH9LUJLQ0DU\DVWKHTXHHQRIKHDYHQWKHSDVVDJHWRWKH2WKHU:RUOG VXJJHVWVWKHSDVVDJHWKURXJKWKH5HG6HDDQGWKHH[WUDRUGLQDU\YLVLRQZLWKZKLFK WKHEDOODGFRQFOXGHVRFFXUVDIWHU7KRPDV5K\PHUDQGKLV/DG\KDYHUHFDSLWXODWHG DQGHYDGHGWKHWUDJHG\RIWUDQVJUHVVLRQLQDJDUGHQWKDWLQLWLDWHVKXPDQKLVWRU\ 7KHEDOODGRI´7KRPDV5K\PHUµLVLQQRVHQVHD´SDJDQµEDOODGWKHEDOODG ZRXOGEHPHDQLQJOHVVWRDSDJDQDVVXPLQJWKDWRQHFRXOGKDYHVRPHKRZIRXQG 7KHVHJHQHUDOL]DWLRQVDSSO\RIFRXUVHPRVWLPPHGLDWHO\WRWKHWUDGLWLRQRISRSXODU&KULVWLDQLW\ /HDUQHGDQGSKLORVRSKLFDOO\RULHQWHG&KULVWLDQVHODERUDWHGVXFKLGHDVDVWKHIHOL[FXOSDDQGVSHFXODWHG XSRQWKHZD\LQZKLFKWKHLQFDUQDWLRQLPSOLHGDPHGLDWLRQRIVRPHRIWKHVHRSSRVLWLRQV ,Q7KRPDVRI(UFHOGRXQHWKHODG\VKRZV7KRPDVDIRXUIROGVHWRIEUDQFKLQJSDWKVRQHWR KHDYHQRQHWRKHOORQHWRSXUJDWRU\DQGWKHIRXUWKWRWKHODQGRIIDHULH
7+20$6'+,//
DSDJDQLQODWHPHGLHYDORUHDUO\PRGHUQ6FRWODQGWROLVWHQWRLW%XWLIZHPD\ EHJLQE\REVHUYLQJKRZGHHSO\&KULVWLDQWKHEDOODGLVZHPXVWDOVRQRWHWKDWWKH EDOODGPDVWHUZKRZDVUHVSRQVLEOHIRUWKHEDOODG´7KRPDV5K\PHUµLQWKHIRUPLQ ZKLFKLWZDVSXEOLVKHGE\-DPLHVRQFKDOOHQJHVFHUWDLQDVSHFWVRI&KULVWLDQWKRXJKW SURIRXQGO\&KULVWLDQWKRXJKWLVDV,KDYHUHPDUNHGELQDU\LQFHUWDLQUHVSHFWVDQG WKHFRVPRORJLFDOYLVLRQZLWKZKLFKWKHEDOODGFRQFOXGHVLVRIDWULSDUWLWHFRVPRV KHDYHQKHOODQGHOIODQG$JDLQWKHEDOODGPDVWHUVHHPVFRPIRUWDEOHZLWKDQ HVVHQWLDOO\SRVLWLYHYLHZRIVH[XDOGHVLUHDQGSOHDVXUHDQGZLWKWKHLGHDWKDWZRPHQ PLJKWSRVVHVVDJHQF\DQGDXWKRULW\ %XWZHDUHDIWHUDOOWROGQRWKLQJDERXWHOIODQGRU7KRPDV·VDGYHQWXUHVLQWKDW UHDOP:HPXVWLQIHUHYHU\WKLQJWKDWZHFDQVD\DERXWHOIODQGIURP7KRPDV·V DGYHQWXUHVRQWKHMRXUQH\WRWKDWODQG2QHLPPHGLDWHSRLQWKRZHYHULVWKDWHOI ODQGKDVDEHDXWLIXOTXHHQEXWLWDSSHDUVWRKDYHQRNLQJ2ULIWKHUHLVDNLQJ DVWKHUHLVLQVRPHYHUVLRQVRIWKHVWRU\OLNH.LQJ$UWKXURU$LOLOOWKHKXVEDQGRI 0HGEKHVHHPVWRKDYHWRDFFHSWWKHIDFWWKDWKLVEHDXWLIXOTXHHQWDNHVDORYHU ZKHQLWSOHDVHVKHU,QRWKHUZRUGVWKLVLVDUHDOPLQZKLFKZRPHQ³RUDWOHDVWRQH ZRPDQGRHV$QGWKHTXHHQRIHOIODQGUHYHDOVKHUVHOIDVDQDXWKRULW\ÀJXUHLQD YDULHW\RIZD\V,WLVVKHZKRLQLWLDWHVWKHHURWLFUHODWLRQVKLSEHWZHHQKHUVHOIDQG 7KRPDV³SUHVXPDEO\VKHKDVVHHQKLPIURPDIDUDQGOLNHGZKDWVKHVDZ2QFH WKH\DUHORYHUVVKHWDNHV7KRPDVLQWRKHUUHDOP³UHYHUVLQJWKHQRUPDOSDWWHUQRI SDWULDUFKDOPDUULDJHRUFRQFXELQDJHLQZKLFKWKHPDQWDNHVWKHZRPDQLQWRKLV KRXVHKROG,WLVRQKHUKRUVHWKDWVKHDQG7KRPDVWUDYHUVHWKHVHDRIEORRGDQG ÀQDOO\DQGFOLPDFWLFDOO\VKHUHHQDFWVDQGUHYHUVHVWKHVWRU\RIWKH)DOOSURWHFWLQJ KHUIRROLVKDQGJUHHG\ORYHUIURPWKHFXUVHGIUXLWWKDWKHZRXOGRWKHUZLVHKDYH HDWHQ6KHRIIHUV7KRPDVEUHDGDQGZLQHLQLWVSODFHWKHPDWHULDOHOHPHQWVRIWKH (XFKDULVWLFIHDVWDQGWKHQVKRZV7KRPDVWKHFRVPRVDVKHUHVWVKLVKHDGRQKHU NQHHDIWHUKDYLQJHDWHQDQGGUXQNKLVÀOO7KHJHVWXUHFHUWDLQO\LPSOLHVVH[XDO LQWLPDF\³,ZRXOGEHHODERUDWLQJRQWKHVSDUHGLFWLRQDQGEUHYLW\RIWKHEDOODGLI, ZHUHWRGHÀQHWKHYLVLRQDVDSRVWFRLWDOEXWRQHRIWKHLPSOLFDWLRQVRIWKHEDOODGLV WKDWDVH[XDOUHODWLRQVKLSEHWZHHQDFRXSOHZKRÀQGHDFKRWKHUDWWUDFWLYHLVSHUIHFWO\ OHJLWLPDWH DQG IUHH IURP PRUDO VLJQLÀFDQFH 1HLWKHU7KRPDV QRU WKH HOITXHHQ VKRZDQ\KLQWRIUHOXFWDQFHWRHQWHULQWRWKHLUUHODWLRQVKLSDQGQHLWKHUWKHSRHWQRU DQ\RQHHOVHFRQGHPQVWKHP7KHPRUDOZRUOGRIWKHEDOODGWKXVFRQIRUPVWRWKH YLVLRQWKDWWKHHOITXHHQVHWVEHIRUH7KRPDV7KHUHLVULJKWHRXVQHVVSUHVXPDEO\ GHÀQHGDVWUDGLWLRQDO&KULVWLDQDVFHVLVWKHUHLVZLFNHGQHVVZKLFKLVSUHVXPDEO\ LWVRSSRVLWHDQGWKHUHLVHOIODQGDVSDFHLQZKLFKDZRPDQLVSRZHUIXODQGLQ ZKLFKFRQYHQWLRQDOPRUDODWWLWXGHVWRVH[XDOSOHDVXUHGRQRWVHHPWRDSSO\ )RUUHIHUHQFHVDQGGLVFXVVLRQRIWKHWKHRORJLFDOLPSOLFDWLRQVRIWKHPHGLHYDO&HOWLFLPPUDPD OLWHUDWXUHVHH3URLQVLDV0DF&DQD´7KH6LQOHVV2WKHUZRUOGRI,PPUDP%UDLQµLQ7KH2WKHUZRUOG 9R\DJH LQ (DUO\ ,ULVK /LWHUDWXUH HG -RKQDWKDQ 0 :RRGLQJ 'XEOLQ )RXU &RXUWV 3UHVV ² 6HH DOVR -RKQ &DUH\ $ 6LQJOH 5D\ RI WKH 6XQ $QGRYHU DQG$EHU\VWZ\WK &HOWLF 6WXGLHV 3XEOLFDWLRQV,QF ²HWSDVVLP
+$59$5'7+(2/2*,&$/5(9,(:
7KHUHDGLQJRI´7KRPDV5K\PHU$ µWKDW,DPSURSRVLQJVHHPVWRPHVWURQJO\ VXSSRUWHG E\ WKH WH[W RI WKH EDOODG:H ZRXOG KDYH WR VXSSRVH WKDW WKH EDOODG PDVWHUZKRVKDSHGWKHEDOODGWKHVLQJHUVZKRVDQJLWDQGWKHEDOODGDXGLHQFH ZKROLVWHQHGWRLWZHUHREOLYLRXVWRWKHPHDQLQJRIWKHV\PEROVWKDWDUHHYRNHG DQGWRWKHGHQRWDWLYHPHDQLQJRIPXFKRIWKHODQJXDJHRIWKHEDOODGLIZHZHUHWR DUJXHWKDW´7KRPDV5K\PHUµLVDFRQYHQWLRQDOO\UHOLJLRXVEDOODGRUDVHFXODUEDOODG ZKLFKKDSSHQVWRLQFOXGHVRPHUHOLJLRXVLPDJHU\DQGDOOXVLRQV$JDLQP\UHDGLQJ RIWKHEDOODGH[SODLQVLWVFXULRXVO\WUXQFDWHGQDUUDWLYHVWUXFWXUHWKHKHUR7KRPDV 5K\PHUGRHVQRWKLQJPRUHWKDQUHDFWWRWKHLQLWLDWLYHVRIWKHHOITXHHQDQGKHLV LQKHUSRZHUDQGXQGHUKHUSURWHFWLRQWKURXJKRXWWKHEDOODG7KHEDOODGSURSHULV DERXWDVHULHVRIYLVLRQVZKLFKWKHUHDGHURUDXGLWRUPXVWJORVVIRUWKHPVHOYHV ,I ZH GHÀQH WKLV WH[W DV D IDQWDV\ DV D PDUYHORXV EDOODG RI WKH GLVWDQW DQG LPDJLQDU\ SDVW ´7KRPDV 5K\PHUµ LV QRW SDUWLFXODUO\ SUREOHPDWLFDO LQ WKDW ZH DVPRGHUQUHDGHUVGRQRWH[SHFWVXFKWH[WVWREHWKHRORJLFDOO\RUHYHQORJLFDOO\ FRQVLVWHQW%XWJLYHQWKHFODLPZKLFKWKHDXWKRULW\RIVFKRODUVVXFKDV0RWKHUZHOO DOORZV WKDW DW OHDVW VRPH EDOODG VLQJHUV DQG DXGLWRUV WRRN WKH EDOODG TXLWH VHULRXVO\ DV D WUXH QDUUDWLYH WKHQ WKH LVVXH RI WKH LGHRORJLFDO LPSOLFDWLRQV RI WKHEDOODGLVPXFKPRUHFKDOOHQJLQJ7KHSUREOHPRIFRXUVHZLWKWKLVUHDGLQJ RIWKHEDOODGDVDVHULRXVWH[WLVWKDWLWPLJKWVHHPWRSUHVXPHDNLQGRIFRYHUW ´SDJDQµ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·V YR\DJHWRWKH2WKHU:RUOGDQGWKHWHDFKLQJRIWKHHOITXHHQWDNHSODFHLQH[FHSWLRQDO DQGLQGHHGLQZKDWPLJKWEHGHÀQHGDVOLPLQDOVLWXDWLRQV7KH\PHHWHDFKRWKHU LQDQHDUWKO\ZLOGHUQHVVWUDYHOEHWZHHQWKHZRUOGVDQG7KRPDVLVLQVWUXFWHGE\ WKHTXHHQRIIDLULHLQDJDUGHQWKDWLVEH\RQGWKLVZRUOGDQG\HWRXWVLGHKHUUHDOP RI(OIODQG7KHEDOODGLVDVWRU\DERXWWHDFKLQJWKHUHDUHQRDGYHQWXUHVDQG WKHHURWLFUHODWLRQVKLSLVSDVVHGRYHUYHU\TXLFNO\$QGLIZHWDNHWKHVHWHDFKLQJV VHULRXVO\WKHLPSOLFDWLRQVRIWKLVDGYHQWXUHDUH,ZRXOGDUJXHTXLWHFOHDU 7KRPDV5K\PHU·VUROHLQ6FRWVIRONWUDGLWLRQDV´7UXH7KRPDVµ³WKHSURSKHW ZKRVHHVWKHIXWXUHDQGLVLQFDSDEOHRIO\LQJDQGZKRVHSURSKHWLFWH[WVZHUHZLGHO\ UHDGDQGFLUFXODWHG³SHUKDSVSUHGDWHVKLVUROHLQWKLVEDOODG7KLVEDOODGZKLFK ´H[SODLQVµKRZWKHSURSKHWSRHWREWDLQHGKLVPDUYHORXVDELOLWLHVZDVVKDSHGE\ WKHEDOODGPDVWHUDVDYHKLFOHWRH[SUHVVWKHVHWKHRORJLFDODQGVRFLDOLGHDOV 2QHFRXOGRIFRXUVHDUJXHWKDWVXFK´DGYDQFHGµLGHDVVLPSO\FRXOGQRWKDYH EHHQDUWLFXODWHGLQPHGLHYDORUHDUO\PRGHUQ6FRWODQG,ZRXOGUHVSRQGWRWKLVOLQH RIDUJXPHQWLQWZRZD\V,QWKHÀUVWSODFHWKHWH[WRIWKHEDOODGZDVSXEOLVKHGLQWKH
7+20$6'+,//
HDUO\QLQHWHHQWKFHQWXU\ZDVFROOHFWHGIURPRUDOSHUIRUPDQFHGHFDGHVHDUOLHUDQG LVFOHDUO\UHODWHGWRD0LGGOH(QJOLVKURPDQFHWKDWLVSUHVHUYHGLQÀIWHHQWKFHQWXU\ PDQXVFULSWV6FKRODUVDUHLQHYLWDEO\VXVSLFLRXVLIRQHDUJXHVWKDWDEDOODGIRUZKLFK WKHUHLVQRHYLGHQFHEHIRUHWKHVHYHQWHHQWKRUHLJKWHHQWKFHQWXU\LV´PHGLHYDOµ EXWLQWKHFDVHRI´7KRPDV5K\PHUµWKHUHLVVXEVWDQWLYHHYLGHQFHIRUWKHFODLP WKDWVRPHIRUPRIWKHEDOODGDWOHDVWZDVTXLWHROG,IZHKDYHWRFKRRVHEHWZHHQ SUHFRQFHLYHGKLVWRULFDOLGHDVDQGFOHDUWH[WXDOHYLGHQFH,ZRXOGSUHIHUWRDFFHSWWKH HYLGHQFHRIWKHWH[W³SDUWLFXODUO\VRVLQFH,FDQWKLQNRIQRUHDVRQZK\-DPLHVRQ WKHÀUVWHGLWRURIWKHEDOODGRU0UV%URZQWKHEDOODGVLQJHUIURPZKRPKHREWDLQHG LWPLJKWKDYH´FRUUHFWHGµRUFKDQJHGWKHEDOODGQDUUDWLYH7KHUHKDVEHHQVRPH FRQFHUQ³´VXVSLFLRQµZRXOGEHWRRVWURQJDZRUG³DERXW0UV%URZQ·VUROHLQ WKHWUDGLWLRQRI6FRWVEDOODGU\VLQFHVKHLVWKHVRXUFHIRUVRPDQ\RIWKHEDOODGVDQG IRUVRPDQ\RIWKHEHVWYHUVLRQVRIWKHEDOODGVDVFDQRQL]HGE\&KLOG%XWWKHUH DUHRWKHUYHUVLRQVRI´7KRPDV5K\PHUµSUHVHUYHGLQ6FRWVWUDGLWLRQDQGLWLVFOHDU WKDWWKHEDOODGLVUHODWHGWRWKHODWH0LGGOH(QJOLVKURPDQFH7KRPDVRI(UFHOGRXQH $GPLWWHGO\WKH´$µYHUVLRQRI´7KRPDV5K\PHUµZKLFKLVWKHYHUVLRQ-DPLHVRQ FROOHFWHGIURP0UV%URZQLVWKHWH[WXSRQZKLFKWKLVLQWHUSUHWDWLRQRIWKHEDOODG LVEDVHGDQGWKHRWKHUYHUVLRQVRIWKHEDOODGDUHOHVVH[SOLFLWO\WKHRORJLFDOWKDQWKLV RQH%XWWKLVREVHUYDWLRQLVLQHIIHFWDQDUJXPHQWIRUWKHDXWKHQWLFDQGWUDGLWLRQDO FKDUDFWHURIWKLVIRUPRIWKHEDOODG$VWKHZLIHRID3UHVE\WHULDQPLQLVWHU0UV %URZQZRXOGQRWKDYHDQ\PRWLYDWLRQWRUHVKDSHDWUDGLWLRQDOEDOODGLQDZD\WKDW VRPHUHDGHUVDWOHDVWPLJKWÀQGWKHRORJLFDOO\SUREOHPDWLFDO,IDQ\WKLQJVKH ZRXOGSUHVXPDEO\KDYHEHHQLQFOLQHGWRPRGLI\WKHEDOODGLQWKHGLUHFWLRQRI RUWKRGR[\LIVKHKDGWKRXJKWRIWKHEDOODGDVLQVRPHVHQVH´KHUµWH[WIRUZKLFK VKHPLJKWEHWKRXJKWDFFRXQWDEOH%XWDVDQ´DQWLTXDULDQµ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
%XFKDQ7KH%DOODGQ2QWKHOHJLWLPDF\RI0UV%URZQ·VUROHDVDVRXUFHRIEDOODGV VHH +ROJDU 2ODI 1\JDUG ´0UV %URZQ·V 5HFROOHFWHG %DOODGVµ LQ %DOODGV DQG %DOODG 5HVHDUFK 6HOHFWHG3DSHUVRIWKH,QWHUQDWLRQDO&RQIHUHQFHRQ1RUGLFDQG$QJOR$PHULFDQ%DOODG5HVHDUFK HG3DWULFLD&RQUR\6HDWWOH8QLYHUVLW\RI:DVKLQJWRQ ²)RUDPRUHVNHSWLFDOYLHZRI WKHUHODWLRQVKLSRI0UV%URZQDQG´IRONµEDOODGWUDGLWLRQVHH'DYLG&)RZOHU$/LWHUDU\+LVWRU\ RIWKH3RSXODU%DOODG'XUKDP1&'XNH8QLYHUVLW\3UHVV ²
+$59$5'7+(2/2*,&$/5(9,(:
DQGZRPHQH[FOXGHGIURPFXOWXUDODXWKRULW\DQGSROLWLFDOSRZHURIWHQDGGUHVV WKHFRQFHUQVRIWKHGLVSRVVHVVHGDQGWKHSRZHUOHVV2QHWKLQNVRIWKHVSLULWXDOV GHDOLQJZLWKWKHWKHPHRI([RGXVDQGIUHHGRPIURPVODYHU\LQWKH$IUR$PHULFDQ FKXUFKHVLQ$PHULFDEHIRUHHPDQFLSDWLRQRUWKHZRUNVRQJVIURPZKLWH$PHULFDQ IRONWUDGLWLRQ)URPWKHWLPHRIWKH/ROODUGVRQZDUGVLIQRWEHIRUHWKHUHZHUH ´FRQYHQWLFOHVµRIZRPHQDQGPHQLQ(QJODQGDQG6FRWODQGZKRZDQWHGWRPRYH EH\RQGWKHSDVVLYHDFFHSWDQFHRIWKHRIÀFLDOUHOLJLRQRIWKHGD\DQGLWLVLPDJLQDEOH DWOHDVWWKDWVRPHRILGHDVLPSOLFLWLQWKLVYLVLRQSRHPGHULYHIURPVXFKDVHWWLQJ ,I RQH DFFHSWV P\ LQWHUSUHWDWLRQ RI ´7KRPDV 5K\PHUµ DQG LWV FRQWH[W RQH LPPHGLDWHTXHVWLRQLVZKHWKHUWKLVEDOODGLVXQLTXHLQLWVWKHRORJLFDOLPSOLFDWLRQV 7KHYDULDQWVRIWKHEDOODG,PXVWDGPLWDUHOHVVFOHDUO\WKHRORJLFDO7KHSRWHQWLDOO\ UHOHYDQWFRUSXVRI$QJOR6FRWV6FDQGLQDYLDQDQG(XURSHDQEDOODGU\DQGIRONWDOHLV KXJHDQG,FDQQRWSUHWHQGWRKDYHVXUYH\HGLWEXWRQHLPPHGLDWHDQDORJXHLV´7DP /LQµLQZKLFKDVWURQJIHPDOHKHURLQHUHVFXHVKHUORYHIURPIDLHULHDQGZKLFK UHÁHFWVWKHNLQGRIEOHQGLQJRIFRQYHQWLRQDO&KULVWLDQWKRXJKWGHOLJKWLQVH[XDO ORYHDQGZDU\UHVSHFWIRUWKHSRZHUDQGFKDUPRIIDLHULHWKDWZHVHHLQ´7KRPDV 5K\PHUµ$QRWKHUSRVVLEOHDQDORJXHZRXOGEH´*LO%UHQWRQµDOWKRXJKWKDWEDOODG LVOHVVVXFFHVVIXOHVWKHWLFDOO\WKDQHLWKHU´7DP/LQµRU´7KRPDV5K\PHUµ$PRUH UHPRWH EXW VWULNLQJ DQDORJXH LV 0DULH GH )UDQFH·V LWDOLFL]HGLQWKHRULJLQDO@
'(%25$+/8&$66&+1(,'(5
%\FRQWUDVW-RKQ&RWWRQLQKLV&RYHQDQWRI*RG·V)UHH*UDFHXVHVWKHÀUVW SHUVRQSOXUDO´ZHµ$VKHVSHDNVRIWKHGLIÀFXOWLHVLQVWULYLQJIRUDULJKWHRXVOLIH KHGRHVQRWH[FHSWKLPVHOIRUKLVKRXVHKROG+LVPHVVDJHLVRQHRIHQFRXUDJHPHQW DQGLWLVLQFOXVLYH:KLOH6KHSDUGXVHVWKHWHUP´HOHFWµDVERWKDYHUEDQGDQRXQ &RWWRQDYRLGVLWXVLQJ´HIIHFWXDOFDOOLQJµDQGVWUHVVLQJGLYLQHPHUF\UDWKHUWKDQ MXVWLFHLQZKDWPD\EHDUHÁHFWLRQRI3UHVWRQ·VLQÁXHQFH,QFRQWUDVWWR6KHSDUG WKH%RVWRQFOHUJ\PDQDSSHDUVWREHDGGUHVVLQJ´VDLQWVµZLWKZKRPKHIHHOVFORVH WLHVDQGZKRPKHDGGUHVVHVRQDSODQHRIHTXDOLW\DQDWWLWXGHWKDWSLRXVPHPEHUV RIWKHFRPPXQLW\PXVWKDYHDSSUHFLDWHG&RWWRQLQGHHGPDNHVGLYLQHJUDFHVHHP PRUHDYDLODEOH 7ZRFLUFXPVWDQFHVDUHFUXFLDOO\LPSRUWDQWLQUHH[DPLQLQJWKHWHVWLPRQ\DW$QQH +XWFKLQVRQ·VWULDOLQWKHIDOORIÀUVWRIDOO&RWWRQKDGUHHVWDEOLVKHGKLPVHOI DVDÀJXUHQRWZRUWK\RIVXVSLFLRQE\WKDWWLPHDQGZDVFRXQWHGRQDVDQDOO\RI WKHDXWKRULWLHVDVKLIWLQWKHH[LVWLQJFRDOLWLRQIURPD\HDUHDUOLHU DQGVHFRQGO\ +XWFKLQVRQKDGLQVWLJDWHGKHUFXVWRPRIZDONLQJRXWRI-RKQ:LOVRQ¶VSRUWLRQRI WKHVHUYLFHVLQWKH%RVWRQFRQJUHJDWLRQIROORZHGE\DQXPEHURIRWKHUZRPHQ DIWHUKLVGHQXQFLDWLRQRI&RWWRQWRWKH*HQHUDO&RXUWWKDWLVDIWHUKHULQWHUURJDWLRQ E\WKHPLQLVWHUV,WLVKLJKO\OLNHO\WKDWDVDJRGO\SHUVRQLQ(QJOLVKWHUPVVKH GHSUHFDWHGLQWKHH[WUHPH:LOVRQ¶VGUDPDWLFUHIHUUDORIDFKXUFKPDWWHUWRWKHFLYLO DXWKRULWLHVDGLVDJUHHPHQWWKDWLQWKHYLHZRIWKHJRGO\RXJKWWRKDYHEHHQVHWWOHG ZLWKLQWKHFKXUFKDPRQJWKHSDUWLFLSDQWVWKHPVHOYHV7KLVVLOHQWSURWHVW²WKHRQO\ IRUPRISXEOLFGLVVHQWDYDLODEOHWRZRPHQ²XQGRXEWHGO\FRQWULEXWHGDJUHDWGHDO WR:LQWKURS¶VDQLPRVLW\WRZDUGKHUEHFDXVHKHKDGSHUVRQDOO\VHOHFWHG:LOVRQ WRDFFRPSDQ\KLPWR0DVVDFKXVHWWV%D\DQGWKHWZRPHQZHUHFORVHSROLWLFDO DVVRFLDWHV:LQWKURSVWUHVVHGKHUGHSDUWXUHZKHQ:LOVRQ³EHJDQDQ\H[HUFLVH´LQ WKHYHU\¿UVWSDUDJUDSKLQWKHVHFWLRQRIWKH³6KRUW6WRU\´KHDGHG³7KHSURFHHGLQJV RIWKH*HQHUDO&RXUW´+XWFKLQVRQ¶VUHPDUNVDWWKHLQWHUURJDWLRQKDGWR VHUYHDVDEDVLVIRUFRQYLFWLQJKHUHYHQWKRXJKWKHPLQLVWHUVZKRWHVWL¿HGDJDLQVW $VSUHVLGLQJRIÀFHURIWKH*HQHUDO&RXUW:LQWKURSLQWHUYHQHGDWOHDVWWZLFHWRGHÁHFWWKH VXEMHFWDZD\IURPDQ\SRVVLEOHJXLOWRI&RWWRQ·V2QFHKHFXWRII:LOOLDP%DUWKROPHZZKHQKH DSSHDUHGWREHLQFULPLQDWLQJ&RWWRQDQGRQFHZKHQDGHSXW\H[SUHVVHGDGHVLUHWRSRVHDSRWHQWLDOO\ LQFULPLQDWLQJTXHVWLRQWR&RWWRQ´([DPLQDWLRQRI0UV$QQH+XWFKLQVRQµ $QGLQWKH ´3URFHHGLQJVRIWKH*HQHUDO&RXUWµLQWKH´6KRUW6WRU\µKHEHJDQE\VWUHVVLQJ&RWWRQ·VXQDQLPLW\ ZLWK WKH RWKHU PLQLVWHUV UHDFKHG DW WKH HDUOLHU V\QRG KHOG D IHZ PRQWKV EHIRUH WKH WULDOV +DOO $QWLQRPLDQ&RQWURYHU\ , DP WUHDWLQJ :LQWKURS DV WKH DXWKRU RI WKLV VHFWLRQ +DOO VXJJHVWHG QRW ORQJ DJR WKDW WKH ´6KRUW6WRU\µVKRXOGEHWUHDWHGDVDWH[WWKDWKDV´QRDXWKRULQDQ\PHDQLQJIXOVHQVHµLWLVDFDVH RI´VRFLDODXWKRUVKLSµ'DYLG+DOO:D\VRI:ULWLQJ7KH3UDFWLFHDQG3ROLWLFVRI7H[W0DNLQJLQ 6HYHQWHHQWK&HQWXU\1HZ(QJODQG3KLODGHOSKLD8QLYHUVLW\RI3HQQV\OYDQLD3UHVV 7KHUH DUH DW OHDVW WZR REMHFWLRQV WR WKH YLHZ WKDW WKH VHFWLRQ KHDGHG ´7KH SURFHHGLQJV RI WKH *HQHUDOO &RXUWµZDVDSURGXFWRIVRFLDODXWKRUVKLSKRZHYHU3DUWVRIWKHQDUUDWLYHVHHPIDUWRRLPSDVVLRQHG DQGVHOIMXVWLÀFDWRU\LQWRQHWRKDYHEHHQGHULYHGIURPRIÀFLDOUHFRUGV2YHUDOOLWVHHPVDKLJKO\ SDUWLVDQGRFXPHQWDVZHOOUHÁHFWLQJRQHVLGH·VSROHPLFVUDWKHUWKDQDJHQHUDODJUHHPHQWZLWKLQ WKHFRPPXQLW\
+$59$5'7+(2/2*,&$/5(9,(:
KHUDSSHDUHGWRKDYHWDNHQQRVHULRXVRIIHQFHDWWKHWLPHDQGWKHLUWHVWLPRQ\ZDV GLVSXWHGE\RWKHUZLWQHVVHVLQFOXGLQJDUXOLQJHOGHUDQGDFOHUJ\PDQ ,IZHIROORZWKHLQGHSHQGHQWWUDQVFULSWRI$QQH+XWFKLQVRQ·VFLYLOWULDOUDWKHU WKDQDFFHSWLQJ:LQWKURS·VDOOHJDWLRQVLWDSSHDUVWKDWVKHGLGQRWQHFHVVDULO\LPSXWH DQ\NLQGRIIDOVHGRFWULQHWRWKHPDMRULW\RIPLQLVWHUVLQ0DVVDFKXVHWWV%D\VLQFH HYHU\RQHDJUHHGWKDWSUHDFKLQJDFRYHQDQWRIZRUNVZDVQRWRQO\DSSURSULDWHEXW HVVHQWLDO5DWKHUVKHÀUVWRIIHUHGUHVLVWDQFHWR+XJK3HWHU·VYHKHPHQWGHPDQGV WKHQORVWKHUWHPSHUDQGUHVSRQGHGZLWKDQH[DJJHUDWHGFKDUDFWHUL]DWLRQRIWKH GLIIHUHQFHV EHWZHHQ &RWWRQ·V SUHDFKLQJ DQG WKDW RI RWKHU PLQLVWHUV DQG ÀQDOO\ TXDOLÀHGKHUDQVZHUDFFRUGLQJWRKHURZQZLWQHVVHV WRVD\WKDWWKHPDLQGLIIHUHQFH FRQVLVWHGRIDGLIIHUHQWHPSKDVLVRQWKHWZRFRYHQDQWV,QRWKHUZRUGV+XWFKLQVRQ GHVFULEHGWKHSUHDFKLQJVW\OHVRI&RWWRQDQG6KHSDUGDWOHDVWZLWKVRPHGHJUHH RIDFFXUDF\2QHFRXOGDUJXHWKDW6KHSDUG·VUHOHQWOHVVVWUHVVRQWKHLPSHGLPHQWV WR DFKLHYLQJ VDYLQJ IDLWK DPRXQWHG WR VLJQLÀFDQW GHHPSKDVLV RI WKH SURPLVH FRQWDLQHGLQWKHFRYHQDQWRIJUDFH,QDFKDUJHGVHWWLQJZKHUHH[DJJHUDWLRQFRXOG EHH[SHFWHG+XWFKLQVRQ·VDFFXVDWLRQWKDWVRPHPLQLVWHUVLQ0DVVDFKXVHWWVZHUH QRWSUHDFKLQJWKHFRYHQDQWRIJUDFHFOHDUO\LVDWOHDVWXQGHUVWDQGDEOH+HUUHPDUNV DUHFRQVRQDQWZLWKDGLVFXVVLRQWKDWWKHFOHUJ\PHQZHUHKDYLQJRUZRXOGVRRQ KDYHDPRQJWKHPVHOYHV&OHDUO\WKH\ZHUHDOVRSKUDVHGLQVXFKDZD\DVWRJLYH RIIHQVHEXWQRWVRVHULRXVO\WKDWWKHFOHUJ\PHQFRXOGQRWOHWWKHPSDVV³XQWLOLW ZDVQHFHVVDU\D\HDUODWHUWRFRPHXSZLWKJURXQGVIRUSXQLVKLQJ$QQH+XWFKLQVRQ DVWKHOHDGHURIDVLOHQWSURWHVWDJDLQVWWKHDFWLRQVRI-RKQ:LOVRQDWWKH*HQHUDO &RXUW$WWKDWSRLQWSROLWLFDOFRQVLGHUDWLRQVLPSLQJHGRQWKHSXUHO\UHOLJLRXV
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ÁHFWWKHDFWLYLW\RISHRSOHDW WKHVLWH7KHFXUUHQWUHVHDUFKKDVVKLIWHGWKHHPSKDVLVDZD\IURPWKDWRISUHYLRXV 3KLOLVWLQHVWXGLHVIURPDQH[DPLQDWLRQRISRUWDEOHLWHPVWRWKHH[DPLQDWLRQRI À[HGGRPHVWLFVWUXFWXUHVZKLFKWKHUHE\KHOSVWRDXJPHQWRXUXQGHUVWDQGLQJRIWKH FRPSRVLWLRQDQGFXOWXUHRIWKHSHRSOHOLYLQJLQWKHWHUULWRULHVRI3KLOLVWLD $KRXVHPRGHOEDVHGXSRQDQDVVHVVPHQWRIWKHXQSXEOLVKHGH[FDYDWLRQUH FRUGVRIWKH/HRQ/HY\([SHGLWLRQWR$VKNHORQLVFRPSDUHGKHUHZLWKHYLGHQFH IURPWKHUHVWRIWKH3KLOLVWLQH3HQWDSROLVVHWWOHPHQWVWRGHWHUPLQHFRPPRQEXLOG LQJSDWWHUQV7KHVHHOHPHQWV³WKHXVHRID[LDOSLOODUVPXOWLSXUSRVHYHVWLEXOHV FRQVWUXFWHGKHDUWKVDQGDOLQHDUDUUDQJHPHQWRIURRPDFFHVV³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²
+$59$5'7+(2/2*,&$/5(9,(:
)LQDOO\WKHGRPHVWLFDUFKLWHFWXUHLVXVHGWRVXJJHVWGHWDLOVUHJDUGLQJ3KLOLVWLQH KRXVHKROGVWUXFWXUH
Q5DFKHO0DUJDUHW%LOOLQJV>3K'@ ³,VUDHO6HUYHGWKH/RUG´7KH%RRNRI-RVKXDDV3DUDGR[LFDO3RUWUDLWRI )DLWKIXO,VUDHO 7ZRPDMRUIUDPHZRUNVKDYHGRPLQDWHGVFKRODUO\UHDGLQJRIWKHERRNRI-RVKXD ZLWKLQWKHSDVWFHQWXU\7KHOLWHUDU\GLVFRYHU\RIWKH'HXWHURQRPLVWLF+LVWRU\DQG WKHDUFKDHRORJLFDOGLVFRYHU\RIHYLGHQFHWKDWHQDEOHGDQDO\VLVRIWKHKLVWRULFDOGDWD XQGHUO\LQJWKHVWRU\RI,VUDHO·VRFFXSDWLRQRI&DQDDQ7KLVGLVVHUWDWLRQDGGUHVVHV WKHIUDJPHQWDWLRQRIWHQEURXJKWDERXWE\WKHODWWHUGHYHORSPHQWDQGRIIHUVDPRUH KROLVWLFUHDGLQJRIWKHERRNZLWKDIRFXVRQLWVPHDQLQJDQGSXUSRVHDVDOLWHUDU\ ZRUN,QWKHSURFHVVLWEXLOGVXSRQVHYHUDORWKHUUHFHQWDWWHPSWVDWVXFKDUHDGLQJ ,QUHVSRQVHWRWKHVFKRODUO\REVHUYDWLRQWKDWWKHERRNRI-RVKXDLVIUDXJKWZLWK WHQVLRQVWKDWDUHQRWHDVLO\XQGHUVWRRGRUUHVROYHGWKLVVWXG\SURSRVHVDVDVWDUWLQJ SRLQWWKHVXUSULVLQJ´YHUGLFWµLQ-RVKWKDW´,VUDHOVHUYHGWKH /25'GXULQJ DOOWKHGD\VRI-RVKXDµ:KHQWDNHQVHULRXVO\DVDOLWHUDU\FOXHWKDWSRLQWVWRD WKHRORJLFDOLQWHUSUHWDWLRQRIWKHWRWDOLW\RI,VUDHO·VDFWLRQVLQWKHERRNRI-RVKXDWKLV YHUGLFWEURDGHQVDQGGHHSHQVWKHUHDGHU·VXQGHUVWDQGLQJRI,VUDHO·VVHUYLFHWRWKH /25',WDOORZVWKHXQGHUVWDQGLQJRIWKDWVHUYLFHWRHQFRPSDVV,VUDHO·VUHSHQWDQFH DQG3K'@ $UFKLWHFWXUHDQG&XOWXUDO0HPRU\,FRQRJUDSK\DQGWKH9LVXDO3URJUDPRI WKH6RORPRQLF7HPSOHLQ+LVWRULFDO3ROLWLFDODQG6RFLDO&RQWH[W 7KLVVWXG\VHHNVWRDVVHVVWKHLPSDFWRIDUFKLWHFWXUHRQLGHQWLW\DQGH[SHULHQFHLQ SUHH[LOLF,VUDHODQGDUJXHVWKDWFUXFLDOWRWKLVDVVHVVPHQWLVDQLQWHUGLVFLSOLQDU\ WUHDWPHQWRIWKHLFRQRJUDSKLFV\VWHPRIWKH7HPSOHRI6RORPRQ ,WEHJLQVZLWKDORRNWRWKHRUHWLFDODSSURDFKHVWRDUFKLWHFWXUHJHQHUDOO\DQG ,VUDHOLWHDUFKLWHFWXUHVSHFLÀFDOO\DSSURDFKHVWKDWPRYHEH\RQGVLQJXODUPHDQLQJ DQGEXLOGHU·VLQWHQW7KHDXWKRU·VUHFRQVWUXFWLRQRIWKH7HPSOHLVVHWIRUWKXVLQJ SULPDULO\WKHGHVFULSWLRQLQ.LQJV²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·VFRUSRUDWH SDVW7KHSHUIRUPDQFHRIFXOWLFDQGRWKHUGUDPDVLQWKLVVSDFHFRQFUHWL]HGWKHVH PHPRULHVDQGKHOSHGFRQVWLWXWHFRUSRUDWHLGHQWLW\)URPWKHUHVXOWVRIWKHVHVWXGLHV
+$59$5'7+(2/2*,&$/5(9,(:
LWLVDUJXHGPHDQLQJLQ7HPSOHDUFKLWHFWXUHLVDSSUHFLDWHGEHVWDVDSDUWLFLSDQWLQ WKHG\QDPLFQHJRWLDWLRQRIFXOWXUDOLGHQWLWLHVYLDFRPPHPRUDWLYHPHPRULDOL]D WLRQDVDODQGVFDSHRQZKLFKVXFKLGHQWLWLHVZHUHPDGHFKDOOHQJHGDQGUHPDGH
Q/RXLV'HPRV>7K'@ 7KH&XOWRIWKH6DLQWVDQGLWV&KULVWRORJLFDO)RXQGDWLRQVLQ(XVWUDWLRVRI &RQVWDQWLQRSOH¶V'HVWDWXDQLPDUXPSRVWPRUWHP 7KLVVWXG\SURSRVHVWKDWWKHFXOWRIWKHVDLQWVLQ(XVWUDWLRVRI&RQVWDQWLQRSOH·V'H VWDWXDQLPDUXPSRVWPRUWHPKDVD&KULVWRORJLFDOIRXQGDWLRQ,WH[DPLQHVWKLVWKHVLV ZLWKUHIHUHQFHWRFXOWXUDOKLVWRULFDODQGWKHRORJLFDOFRQWH[WV7KHÀUVWFKDSWHUVHUYHV DVDQLQWURGXFWLRQDQGIRFXVHVRQWKHWKHRORJLFDODQGSROLWLFDOSURFHVVHVWKDWOHDGWR WKH&KULVWRORJLFDOGHÀQLWLRQSURPXOJDWHGE\WKH&RXQFLORI&KDOFHGRQ ZKLFK GHFODUHGWKDW&KULVWKDVWZRQDWXUHVGLYLQHDQGKXPDQXQLWHGLQRQHK\SRVWDVLVRU SHUVRQ&KDSWHUH[DPLQHV(XVWUDWLRV·VPRWLYDWLRQIRUZULWLQJKLVZRUNDVDGHIHQVH DJDLQVWWKHFODLPVSURSRVHGE\VRPHSHUVRQVXQQDPHGE\(XVWUDWLRVWKDWWKHVRXOVRI WKHGHSDUWHGUHVWLQDVWDWHRIVOHHSDQGKDYHQRSRZHUWRLQWHUYHQHLQKXPDQDIIDLUV DIWHUGHDWK7KHWKLUGFKDSWHUDUJXHVWKDW(XVWUDWLRVZURWHKLVZRUNEHWZHHQDQG 7KHHYLGHQFHIRUWKLVSURSRVDOFRPHVIURPDFDUHIXOFRPSDULVRQDQGDQDO\VLV RI(XVWUDWLRV·V'HVWDWXDQLPDUXPDQG*UHJRU\WKH*UHDWRI5RPH·VIRXUWKERRN RI'LDORJXHV7KHFRPSDULVRQUHYHDOVWKDW(XVWUDWLRVZURWHKLVZRUNÀUVW7KHÀQDO FKDSWHUGHPRQVWUDWHVKRZWKHVDLQWVDQGWKHLUDFWLYLWLHVDVGHVFULEHGE\(XVWUDWLRV KDYHD&KULVWRORJLFDOEDVLV'UDZLQJXSRQD&KULVWRORJLFDOPRGHORILPLWDWLRQRIWKH OLIH&KULVWDQGWKH&KULVWRORJLFDOQHRORJLVPVRIWKHVL[WKFHQWXU\(XVWUDWLRVKROGV WKDWWKHVRXOVRIWKHVDLQWVLQFDUU\LQJRXW*RG·VZRUNSDUWLFLSDWHLQKLVYLUWXHVLQ WKHLUHQK\SRVWDVL]HGUHDOLWLHVPHUJHGGLYLQHDQGKXPDQQDWXUHVLQWKHSHUVRQRI -HVXV&KULVW &ORVHO\DOLJQHGZLWKWKLVIRXQGDWLRQLQ(XVWUDWLRV·VZRUNWKHWKHPH RIWKHRVLVGHLÀFDWLRQ GHVFULEHVWKHVRXOVRIGHSDUWHGVDLQWVDVSHUIHFWHG*RGOLNH DQGSDUWLFLSDWLQJLQDQLPPRUWDOOLIHZLWK*RGLQKHDYHQWKURXJKVDOYDWLRQLQ-HVXV &KULVW,QKLVZRUNZKLFKWKLVVWXG\WUDQVODWHVDQGSUHVHQWVLQDQDSSHQGL[(XVWUDWLRV DUJXHVWKDWKXPDQVRXOVUHPDLQLQWHOOLJLEOHLQFRUSRUHDODQGDFWLYHDIWHUGHDWKVLQFH WKH\KDYHWUDQVFHQGHGWKHWLPHDQGVSDFHOLPLWDWLRQVRIWKHKXPDQERG\$IWHUGHDWK WKHVDLQWVFDQRQO\DFKLHYHDFWLYLW\DVKRO\DQGJHQWOHVRXOVLQFRRSHUDWLRQZLWKWKH SRZHURI*RGZKRDLPVDWKXPDQVDOYDWLRQ(XVWUDWLRV·VWH[WFRQFOXGHVZLWKDQ DUJXPHQWWKDWWKHVRXOVRIWKHGHSDUWHGEHQHÀWIURPWKHSUD\HUVRIWKHOLYLQJ
Q(OLVKD5XVV)LVKEDQH>3K'@ %HWZHHQ3ROLWLFVDQG3LHW\$EUDKDP0DLPRQLGHVDQG+LV7LPHV 7KLGLVVHUWDWLRQLVDKLVWRULFDOLQYHVWLJDWLRQLQWR(J\SWLDQ-HZLVKVRFLHW\RIWKH WKLUWHHQWKFHQWXU\DQGWKHOHJDF\RILWVOHDGHU$EUDKDP0DLPRQLGHV² 7KHGDZQRIWKHWKLUWHHQWKFHQWXU\ZLWQHVVHGWUDQVIRUPDWLRQVDQGXSKHDYDOVLQ (J\SWDORQJZLWKDVHULHVRIGHYDVWDWLQJQDWXUDOGLVDVWHUVZKRVHHFRQRPLFDQG
6800$5,(62)'2&725$/',66(57$7,216
GHPRJUDSKLF LPSDFW ZDV IHOW IRU \HDUV WR FRPH ,Q WKH PLGVW RI WKLV KDUGVKLS (J\SWLDQ-HZU\DEVRUEHGKXQGUHGVRI-HZLVKLPPLJUDQWVIURP%\]DQWLXPLQWKH HDVWWR)UDQFHLQWKHZHVWZKRIXUWKHUWHVWHGLWVUHVRXUFHVDQGUHVROYH 7KHEHJLQQLQJRIWKHWKLUWHHQWKFHQWXU\DOVRPDUNVWKHÁRZHULQJRIDVSLULWXDO PRYHPHQWDPRQJ(J\SWLDQ-HZU\ZKRVHULWXDOVDQGLQQHULGHDOVUHÁHFWWKHLPSDFW RIFRQWHPSRUDQHRXV6XÀVP$EUDKDP0DLPRQLGHVHPHUJHGDVWKHVSRNHVPDQIRU WKHQDVFHQWPRYHPHQWDQGXWLOL]HGKLVLQÁXHQFHDQGSUHVWLJHDVKHDGRIWKH-HZV WREULQJOHJLWLPDF\WRWKHSLHWLVWVZKRIRXQGWKHPVHOYHVRQWKHGHIHQVLYHZLWK WKHLUIHOORZ-HZVDQGWKH0XVOLPDXWKRULWLHV+LVFRQWURYHUVLDOLQLWLDWLYHVZHUH QRWFRQÀQHGWRSLHWLVPEXWZHUHIHOWLQDUDQJHRIUHIRUPVWKDWFDVWKLPLQWKHUROH RIFRQVHUYDWLYHGHIHQGHURIWKHWUDGLWLRQ7KLVGLVVHUWDWLRQGHOYHVLQWRDOORIWKHVH PHDVXUHVERWKDVDZLQGRZLQWRWKH1DJLG·VUHOLJLRXVOHDGHUVKLSDQGDVDNH\WR WKHFKDQJHVLQWKHVSLULWXDODQGFRPPXQDOOLIHRI(J\SWLDQ-HZU\ 7KHSUHVHQWZRUNPDNHVXVHRIWKH&DLUR*HQL]DKGRFXPHQWVDVLWVSULPDU\ VRXUFH RI KLVWRULFDO LQIRUPDWLRQ :KLOH SUHYLRXV VFKRODUV KDYH QRWHG PDQ\ RI WKH*HQL]DKIUDJPHQWVGLVFXVVHGKHUHDQXPEHURIWKHVHIUDJPHQWVUHFHLYHWKHLU ÀUVWWUHDWPHQWDQGWUDQVODWLRQLQWKLVVWXG\7KLVZRUNPDUNVWKHÀUVWV\VWHPDWLF DWWHPSW DW D KLVWRULFDO SRUWUDLW RI WKH VRFLRHFRQRPLF VSLULWXDO DQG FRPPXQDO GHYHORSPHQWVRI(J\SWLDQ-HZU\RQWKHHYHRIWKH0DPOŗNSHULRG$VWKHSUHVHQW ZRUNKDVEHQHÀWWHGIURPWKHUHVHDUFKRIRWKHUVFKRODUVWKHDXWKRUKRSHVWKDWWKLV FRQWULEXWLRQZLOOVWLPXODWHIXUWKHULQTXLU\LQWRWKLUWHHQWKFHQWXU\(J\SWLDQ-HZLVK VRFLHW\
Q-RQDWKDQ.DSODQ>3K'@ $'LYLQH/RYH6RQJ7KH(PHUJHQFHRIWKH7KHR(URWLF,QWHUSUHWDWLRQRIWKH 6RQJRI6RQJVLQ$QFLHQW-XGDLVPDQG(DUO\&KULVWLDQLW\ -HZLVKDQG&KULVWLDQFRPPXQLWLHVKDYHFODVVLFDOO\XQGHUVWRRGWKH6RQJRI6RQJV DV D VWDWHPHQW RI GLYLQH ORYH IRU *RG·V FKRVHQ SHRSOH ,VUDHO RU WKH FKXUFK UHVSHFWLYHO\,DGRSWWKHWHUP´WKHRHURWLFµLQFRQWUDVWWRWKHPRUHFRPPRQO\XVHG WHUP´DOOHJRULFDOµWRGHVFULEHWKLVLQWHUSUHWLYHPRGH,WKHQFKDUWWKHKHUPHQHXWLFDO DQG UKHWRULFDO VKDSH RI -HZLVK DQG &KULVWLDQ LQWHUSUHWDWLRQV RI WKH 6RQJ LQ WKH ÀUVWFHQWXULHVRIWKHFRPPRQHUD7KH6RQJSRUWUD\VDQLGHDOZRUOGLQZKLFKWKH ORYHUVFDQEHXQGHUVWRRGDVDUFKHW\SHVZLWKZKLFKRWKHUORYHUVFDQEHLGHQWLÀHG WKXVHQDEOLQJWKHRHURWLFLQWHUSUHWDWLRQ,DUJXHWKDWWKH6RQJ·VWUDQVPLVVLRQDQG WUDQVODWLRQLQWKH6HSWXDJLQWDQGWKH4XPUDQPDQXVFULSWVUHIHUHQFHVWRWKH6RQJ·V XVHLQ$JDLQVW$SLRQ-RVHSKXV (]UD0LVKQDKDQG7RVHIWDDVZHOODVSXUSRUWHG DOOXVLRQVWRWKH6RQJLQQXPHURXVZRUNVIURPWKH6HFRQG7HPSOHSHULRGSURYLGH OLPLWHGHYLGHQFHIRUWKHWKHRHURWLFLQWHUSUHWDWLRQRIWKH6RQJ 7KH ÀUVW YHULÀDEOH DOOXVLRQV WR DQG HFKRHV RI WKH 6RQJ DSSHDU LQ (]UD DQG 5HYHODWLRQ,DUJXHWKDWWKHVHWH[WVPDNHXVHRIDWKHRHURWLFUHDGLQJRIWKH6RQJ DVSDUWRIDFRPSOH[RIDOOXVLRQV WKDWUHFDVWVWKH6RQJLQWRHVFKDWRORJLFDOWLPHDQG DSRFDO\SWLFVSDFHLQGHVFULELQJWKHFRPPXQLW\·VLGHDODQGDIIHFWLYHUHODWLRQVKLS
+$59$5'7+(2/2*,&$/5(9,(:
ZLWK*RG5DEELQLFWH[WVWKDWUHFRUGWUDGLWLRQVIURPWKH7DQQDLWLF3HULRGFD² &( LQWHUSUHWWKHXWWHUDQFHVRIWKH6RQJW\SRORJLFDOO\DVSUHÀJXUDWLRQVRILGHDOVLQ ,VUDHO·VUHODWLRQVKLSZLWK*RG7KHWZHQW\ÀYHSDVVDJHVWKDWFRQWDLQLQWHUSUHWDWLRQV RIWKH6RQJLQ0HNLOWDGH5DEEL7K'@ ³:KDW,V7KLV:RUG"´$Q(DUO\&KULVWLDQ1DUUDWLYHRIWKH8QLYHUVDO6SUHDG RIWKH6SLULWRIWKH6SLULW$FFRPSDQLHG:RUG 7KLVGLVVHUWDWLRQLQYHVWLJDWHVWKHGLYLQHZRUGORJRVUďPD DQGWKH6SLULWSQHXPD DVFRQDUUDWLYHWKHPHVLQ/XNH$FWV:KLOHVFKRODUVKDYHUHFRJQL]HGWKHWKHPDWLF LPSRUWDQFHRIWKHZRUGLQ/XNH$FWVWKHH[DPLQDWLRQRIWKHSDUWLFXODUZD\VLQ ZKLFKWKHZRUGFRQVWLWXWHVWKHRYHUDUFKLQJWKHPHRI/XNH·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ÀFDQFH/XNHSODFHVWKHZRUG DWFHQWHUVWDJHDQGLQVLVWVWKDWWKHZRUGLVVHQWSURFODLPHGDFFHSWHGDQGSUDLVHG 7KHZRUGVDYHVJURZVVSUHDGVSUHYDLOVFRQVWUDLQVDQGFUHDWHVWKHHDUO\&KULVWLDQ HNNOď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ÀJXUDWLRQ RI YDULRXV KXPDQFKDUDFWHUV PDNHXSWKHHQWLUHQDUUDWLYHSORWRIWKHWZRIROGZRUNDQGFRPH XQGHUFRKHUHQWDOLJQPHQWLQOLJKWRIWKHSLYRWDOWKHPHRIWKH6SLULWDFFRPSDQLHG ZRUG/XNH$FWVUHSUHVHQWVDQHDUO\&KULVWLDQQDUUDWLYHZKLFKUHFRXQWVWKHVWHSSLQJ VWRQHVRIWKHXQLYHUVDOVSUHDGRIWKH6SLULWDFFRPSDQLHGZRUGLQWKHIDFHRI5RPDQ FODLPVWRXQLYHUVDOLVP
6800$5,(62)'2&725$/',66(57$7,216
Q$QQ%0F&OHQDKDQ>7K'@ ³%LJ%RVWRQ´7KH,PSDFWRI&RPPXQLW\2UJDQL]LQJRQ&KULVWLDQDQG-HZLVK &RQJUHJDWLRQVLQ%RVWRQ 5HFHQWVFKRODUO\ZRUNKDVVKHGOLJKWRQYDULRXVFRQWULEXWLRQVPDGHE\FRPPXQLW\ EDVHGFRPPXQLW\RUJDQL]LQJ&%&2 WRFLYLFOLIHLQWKH8QLWHG6WDWHV7KURXJK QDWLRQDORUJDQL]DWLRQVVXFKDVWKH,QGXVWULDO$UHDV)RXQGDWLRQ,$) ORFDO&%&2 DIÀOLDWHV HQJDJH PHPEHUV LQ D YDULHW\ RI UHODWLRQVKLS DQG OHDGHUVKLSEXLOGLQJ SUDFWLFHV WR DGGUHVV DQG VROYH FRPPRQ FRPPXQLW\ UHJLRQDO DQG VWDWHZLGH SUREOHPV7KLVGLVVHUWDWLRQH[DPLQHVRQH,$)DIÀOLDWHWKH*UHDWHU%RVWRQ,QWHUIDLWK 2UJDQL]DWLRQ *%,2 *%,2 ZDV IRXQGHG LQ WR RUJDQL]H DFURVV %RVWRQ·V UHOLJLRXVUDFLDOHWKQLFFODVVDQGQHLJKERUKRRGOLQHVIRUWKHSXEOLFJRRG9HUVXV HDUOLHUVWXGLHVWKLVVWXG\UHYHUVHVWKHOHQVLQRUGHUWRXQGHUVWDQGKRZFRQJUHJDWLRQV TXDUHOLJLRXVLQVWLWXWLRQVDUHLPSDFWHGE\DQGLQWHUSUHWGHPRFUDWLFSUDFWLFH %\PHDQVRISDUWLFLSDQWREVHUYDWLRQLQGHSWKHWKQRJUDSKLFFRQYHUVDWLRQVDQG DQH[DPLQDWLRQRIZULWWHQGRFXPHQWVWKLVVWXG\H[DPLQHV-HZLVKDQG&KULVWLDQ FRQJUHJDWLRQV DV WKH\ HQJDJH LQ WKH FDPSDLJQ WR EULQJ SURJUHVVLYH KHDOWKFDUH UHIRUPWR0DVVDFKXVHWWV,WVLQWHUHVWVDUHLQWHUGLVFLSOLQDU\DQGGUDZRQGLVFLSOLQHV LQWKHKXPDQLWLHVDQGVRFLDOVFLHQFHV,WVJURXQGLQJGLVFLSOLQHLV5HOLJLRXV6WXGLHV ZLWKDIRFXVRQOLYHGUHOLJLRQZKLFKORFDWHVUHOLJLRXVFUHDWLYLW\ZLWKLQFXOWXUH,W HQJDJHVFXUUHQWVRFLRORJLFDOVFKRODUVKLSLQLWVVXEÀHOGVRIUHOLJLRQFXOWXUHDQG VRFLDOPRYHPHQWV)LQDOO\LWH[DPLQHVSROLWLFDOVFLHQFHVFKRODUVKLSLQWHUHVWHGLQ FLYLFHQJDJHPHQWDQGVRFLDOFDSLWDOLQDGLYHUVHVRFLHW\ 7KLV UHVHDUFK ÀQGV WKDW ZKHQ UHOLJLRXV SUDFWLFH HQJDJHV &%&2 GHPRFUDWLF SUDFWLFHLWFDQSURGXFHSOXUDOLVPZLWKRXWUHGXFLQJGLIIHUHQFH&RQJUHJDWLRQVWKDW GUDZRQVLWXDWHGUHOLJLRXVWUDGLWLRQVFDQIRVWHUSOXUDOLVPZKLFKWKH\XQGHUVWDQG DVVHOIFRQVFLRXVDFWLYHDQGLQWHQWLRQDOHQJDJHPHQWZLWKGLYHUVLW\7KLVFDVHVWXG\ GHPRQVWUDWHVWKDWFRQJUHJDWLRQVHQJDJHGLQFLYLFDFWLYLW\KDYHUHOLJLRXVUHVRXUFHV WRPHGLDWHFRQÁLFWWKDWPLJKWEHLQWUDFWDEOHLQWKHSROLWLFDOVSKHUH
Q'DYLG-RKQ0R]LQD>7K'@ 4XHOOLQJWKH'LYLQH7KH3HUIRUPDQFHRID7DOLVPDQLQ&RQWHPSRUDU\ 7KXQGHU5LWXDO 7KLVGLVVHUWDWLRQH[SORUHVLPDJHVRIWKHHIÀFDF\RIWDOLVPDQVIX➢ DVPDQLIHVWHG E\DOLQHDJHRI2UWKRGR[8QLW\'DRLVWSULHVWVFXUUHQWO\SUDFWLFLQJWKXQGHUULWXDOLQ FHQWUDO+XQDQ3URYLQFH35&$FORVHUHDGLQJRIWKHULWXDOSURGXFWLRQRIDVSHFLÀF WDOLVPDQFDOOHGWKH7DOLVPDQWR6XPPRQ*HQHUDO3K'@ 7KH'HYHORSPHQWRIWKH+H]HNLDK&RPSOH[/LWHUDWXUH+LVWRU\DQG7KHRORJ\ 7KLVVWXG\H[DPLQHGWKHGHYHORSPHQWRIWUDGLWLRQVDERXW.LQJ+H]HNLDKRI-XGDK LQWKH+HEUHZ%LEOH7KHELEOLFDOQDUUDWLYHVDERXW+H]HNLDKDUHQRWRQO\QXPHURXV EXWDOVRRGGO\GLYHUJHQW+HQFHLQRUGHUWRHOXFLGDWHWKHVLJQLÀFDQFHRIWKLVÀJXUH WKLVVWXG\IRFXVHGRQWZRDV\HWXQUHVROYHGTXHVWLRQV:K\GRHVWKH+HEUHZ %LEOHKDYHVRPDQ\VWRULHVDERXW.LQJ+H]HNLDK:K\GRWKHVHVWRULHVSUHVHQW FRQWUDVWLQJSRUWUDLWVRIWKLVSDUWLFXODUÀJXUH" 7ZRW\SHVRIOLWHUDU\GHYHORSPHQWVZHUHDQDO\]HGLQRUGHUWRDQVZHUWKHVHWZR TXHVWLRQV7KHÀUVWGHYHORSPHQWFRQFHUQHGWKHUHGDFWLRQDOJURZWKRIWKHVWRULHV DERXW +H]HNLDK LQ .LQJV$ FRQWLQXDO WHQVLRQ EHWZHHQ -XGDK·V WKHRORJ\ DQG KLVWRULFDOHYHQWVGURYHWKHJURZWKRIWKHWUDGLWLRQVDERXW+H]HNLDKLQ.LQJV$V KLVWRU\FODVKHGZLWKWKHRORJ\UHGDFWLRQDOOD\HUVZHUHDGGHGLQRUGHUWRUHGUHVV WKHRORJLFDOLQVHFXULWLHVDQGTXHVWLRQVWKDWKDGEHHQXQVDWLVIDFWRULO\DQVZHUHGLQ WKH SUHFHGLQJ SHULFRSH 7KH VHFRQG GHYHORSPHQW IRFXVHG RQ WKH LQVHUWLRQ DQG UHXWLOL]DWLRQRIWKHVWRULHVDERXW+H]HNLDKLQWKHERRNVRI,VDLDKDQG&KURQLFOHV 7KHFRQÁLFWLQJSRUWUD\DORI+H]HNLDKSOD\HGDNH\UROHLQWKHUHXWLOL]DWLRQDQG DGDSWDWLRQRIWKHVWRULHVDERXW+H]HNLDKLQWKHVHERRNV%\WUDFLQJWKHVHOLWHUDU\ GHYHORSPHQWVDERXW+H]HNLDK,KDYHWULHGWRRXWOLQHWRDJUHDWHUGHJUHHKRZDQG ZK\VXFKDFRPSOLFDWHGJURXSRIVWRULHVEHFDPHDVVRFLDWHGZLWK+H]HNLDK
Q7D\ORU*3HWUH\>7K'@ &DUQDO5HVXUUHFWLRQ6H[XDOLW\DQG6H[XDO'LIIHUHQFHLQ(DUO\&KULVWLDQLW\ 7KLV GLVVHUWDWLRQ H[SORUHV WKH ZD\V LQ ZKLFK HDUO\ &KULVWLDQV WKRXJKW DERXW UHVXUUHFWHGERGLHVLQWHUPVRIGHVLUHVVH[XDOSUDFWLFHVUHSURGXFWLRQDQGKRZWR GLVWLQJXLVKPDOHQHVVDQGIHPDOHQHVV(DUO\&KULVWLDQWUHDWLVHVRQWKHUHVXUUHFWLRQ DGGUHVVHG D VHW RI LQWHUUHODWHG DQG RYHUODSSLQJ TXHVWLRQV DQG JRDOV )LUVW WKH\ VRXJKW WR GHÀQH WKH GHJUHH RI FRQWLQXLW\ WKDW H[LVWHG EHWZHHQ WKH PRUWDO VHOI DQG WKH UHVXUUHFWHG VHOI ,Q GRLQJ VR WKH\ VSHFLÀHG ZKLFK VXEVWDQFHV GHVLUHV GLVSRVLWLRQVDQGSUDFWLFHVSHUVLVWHGLQUHVXUUHFWHGERGLHVDQGZKLFKGLGQRW)RU
+$59$5'7+(2/2*,&$/5(9,(:
HDUO\&KULVWLDQVVH[XDODFWVGHVLUHVDQGUHSURGXFWLRQGLGQRWKDYHDQ\SODFHLQ WKHUHVXUUHFWLRQ6HFRQGWKH\VRXJKWWRXQGHUVFRUHWKHLPSRUWDQFHRIKDYLQJD FRUUHFWYLHZFRQFHUQLQJWKHUHVXUUHFWLRQ³HVSHFLDOO\LQZKDWZD\VLWLVFRQWLQXRXV DQGGLVFRQWLQXRXVZLWKWKHPRUWDOERG\DQGÁHVK7KHERG\·V´SDUWVµKROGWKHNH\ WRDFRQWLQXLW\RILGHQWLW\DOWKRXJKKRZWKHVH´SDUWVµDUHGHÀQHGLVGLVSXWHG7KH GLIIHUHQFHVEHWZHHQWKHPRUWDODQGUHVXUUHFWHG´SDUWVµ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´SDUWVµIURPWKHJHQGHUHGGLVFRXUVHVRIVH[XDO GHVLUHVDFWVDQGUHSURGXFWLRQ
Q-XVWLQ55LW]LQJHU>3K'@ $QDUFK\LQWKH3XUH/DQG7UDGLWLRQ0RGHUQLW\DQGWKH5HLQYHQWLRQRIWKH &XOWRI0DLWUH\DLQ5HSXEOLFDQ&KLQD 7KLV GLVVHUWDWLRQ DGGUHVVHV DQ DSSDUHQW DQRPDO\ RI 5HSXEOLFDQHUD UHIRUP %XGGKLVP:K\GLGUHIRUPHUVRIWHQSRUWUD\HGDVGHP\WKRORJL]HGDQGGHULWXDOL]HG VHHNWRSURPRWHGHYRWLRQWRWKHERGKLVDWWYD0DLWUH\DDQGWRVHFXUHUHELUWKLQKLV KHDYHQO\SDUDGLVH"7KLVVWXG\DWWHPSWVWRUHVROYHWKLVDSSDUHQWFRQWUDGLFWLRQE\ GHYHORSLQJDWKHRUL]DWLRQRIDOWHUQDWHPRGHUQLWLHVGHULYHGIURP&KDUOHV7D\ORU·V DQDO\VHV RI WKH PRUDO GLPHQVLRQV RI PRGHUQLW\ 7KLV VWXG\ DUJXHV WKDW 7DL[X WKHOHDGHURIWKHUHIRUPPRYHPHQWUHLQYHQWHGWKHFXOWRI0DLWUH\DLQRUGHUWR DUWLFXODWHDYLVLRQWKDWSURYLGHVDSODFHIRUWZRK\SHUJRRGV³%XGGKDKRRGDQG XWRSLDSHUIHFWHGVHOIDQGSHUIHFWHGVRFLHW\ :KLOHWKHIRUPHUGHULYHVIURP%XGGKLVPWKHODWWHUFDPHIURP:HVWHUQWUDGLWLRQV RIUDGLFDOLVP,QSDUWRQHWKLVVWXG\GUDZVRQKHUHWRIRUHXQVWXGLHGVRXUFHVWRVKRZ WKDW7DL[X·V\RXWKIXOLQYROYHPHQWZLWKUDGLFDOLVPZHQWPXFKGHHSHUDQGZDVPRUH VXVWDLQHGWKDQWKHRIWHQDVVHUWHGÁLUWDWLRQ,WDQDO\]HVDVHULHVRIHVVD\VWKDWKH ZURWHIRUUDGLFDOMRXUQDOVWRVKRZWKDWWKHXWRSLDQYLVLRQRIUDGLFDOLVPÀUHGKLV LPDJLQDWLRQDQGWKDWKLVWKRXJKWLQWKLVSHULRGUHSUHVHQWVDVHULHVRIVKLIWLQJDQG XQVWDEOHDWWHPSWVWREULQJWKLVLGHDOWRJHWKHUZLWKWKDWRI%XGGKDKRRG :KLOH 7DL[X XOWLPDWHO\ UHMHFWHG UDGLFDOLVP LWV XWRSLDQ YLVLRQ FRQWLQXHG WR SURYLGHDQRULHQWLQJIUDPHZRUNIRUKLVPRUDOLPDJLQDWLRQDQGGURYHWKHUHLQYHQWLRQ RIWKHFXOWRI0DLWUH\D,QSDUWWZRWKLVVWXG\WUDFHVWKHKLVWRU\RIWKLVPRYHPHQW IURPLWVEHJLQQLQJVDVWKH´KRXVHFXOWµRI7DL[X·VVHPLQDULHVWRODWHUDWWHPSWVWR SURPRWHLWPRUHZLGHO\7KLVKLVWRU\UHYHDOVWKHLPSRUWDQFHRIGHYRWLRQDQGULWXDOWR WKHUHIRUPHUV·UHOLJLRXVOLYHV7KHFRUHWH[WVRIWKHFXOWUHYHDOLPSRUWDQWWKHRORJLFDO
6800$5,(62)'2&725$/',66(57$7,216
SRLQWVRIFRQYHUJHQFHZLWKDQDUFKLVPZKLFK7DL[XDXJPHQWVLQKLVFRPPHQWDULHV ,QWKHYLVLRQWKDWHPHUJHVXWRSLDDQG%XGGKDKRRGDSSHDUVLPXOWDQHRXVO\VHFXUHG WKURXJKLQFXOFDWLRQRIWUDQVIRUPDWLYHNQRZOHGJHDGKHUHQFHWRDQDFWLYLVWHWKLF DQGGHYRWLRQWR0DLWUH\D$OWKRXJKDQREMHFWRIDJUHDWGHDORIDFWLYLW\LQWKHV DQGVDVHULHVRIKLVWRULFDOPLVIRUWXQHVGLVUXSWHGWKHFXOW·VGHYHORSPHQWDQG OHIWLWIRUJRWWHQXQWLOWRGD\
Q*OHQQ(6Q\GHU>3K'@ ³5HPHPEHULQJWKH$FWVRI3DXO´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´$FWVRI3DXOµ 7KHDUJXPHQWKDVWZRSDUWV,QWKHÀUVWSDUW,DQDO\]HWUDGLWLRQVWKDWFLUFXODWHG ERWKLQGHSHQGHQWO\DQG³LQDWOHDVWRQHRIWKHPDQXVFULSWV³ZLWKWKHWLWOH´$FWV RI3DXOµFRQVLGHULQJHDFKWUDGLWLRQVHSDUDWHO\WKH0DUW\UGRPRI3DXOLQFKDSWHU &RULQWKLDQVLQFKDSWHUDQGWKH$FWVRI3DXODQG7KHNODLQFKDSWHU,XVH DPRQJRWKHUPHWKRGVFRPSDULVRQZLWKGLIIHUHQWJHQUHVWRKLJKOLJKWHDFKWH[W·V SDUWLFXODULWLHV7KHIXQFWLRQRIWKHVHFKDSWHUVLVWRH[KLELWWKHGLYHUVHDQGFRPSRVLWH FKDUDFWHURI$FWVRI3DXO 7KHVHFRQGSDUWGLVFXVVHVDWWHVWDWLRQWRWKH$FWVRI3DXO&KDSWHUGLVFXVVHV WKHHDUOLHVWPDQXVFULSWVWKDWXVHWKHWLWOH´$FWVRI3DXOµLQWURGXFLQJDGGLWLRQDODFWV DQGUHFRQVLGHULQJWKHWH[WVIURPFKDSWHUV²7KHQFKDSWHUDVNVKRZWKHHDUOLHVW UHIHUHQFHVWRWKH$FWVRI3DXOUHODWHWRZKDWPD\RWKHUZLVHEHLQIHUUHGIURPWKH H[WDQWPDQXVFULSWV,FRQFOXGHWKDWDWOHDVWWKUHHGLVWLQFWQDUUDWLYHVHTXHQFHVXVHG WKHWLWOH´$FWVRI3DXOµDQGWKDWFROOHFWLRQVRI´$FWVRI3DXOµYDULHGJHRJUDSKLFDOO\ DQGFKURQRORJLFDOO\
(VWHU%DV\D$V\D 9DLVPDQ>3K'@ %HLQJ+HDUG7KH6LQJLQJ9RLFHVRI&RQWHPSRUDU\+DVLGLF:RPHQ 7KLVGLVVHUWDWLRQLVDVWXG\RIWKHFRQWH[WDQGFRQWHQWRIYRFDOPXVLFLQWKHOLYHV RIFRQWHPSRUDU\