THE REVOLUTION WHICH TOPPLED THE UMAYYADS
ISLAMIC HISTORY AND CIVILIZATION STUDIES AND TEXTS edited by WADAD KADI AND...
155 downloads
932 Views
7MB 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
THE REVOLUTION WHICH TOPPLED THE UMAYYADS
ISLAMIC HISTORY AND CIVILIZATION STUDIES AND TEXTS edited by WADAD KADI AND
ROTRAUD WIELANDT
VOLUME 50
THE REVOLUTION WHICH TOPPLED THE UMAYYADS Neither Arab nor #Abb§sid BY
SALEH SAID AGHA
BRILL LEIDEN • BOSTON 2003
This book is printed on acid-free paper. Library of Congress Cataloging-in-Publication Data Agha, Salih Sa#id The revolution which toppled the Umayyads : neither Arab nor #Abbasid / by Saleh Sa#id Agha. p. cm. — (Islamic history and civilization, studies and texts ; v. 50) Includes bibliographical references and index. ISBN 90-04-12994-4 1. Islamic Empire—History—750-1258. 2. Abbasids. I. Title. II. Series. DS38.6 .A35 2003 909'.09767101—dc21 2003052103
ISSN 0929-2403 ISBN 90 04 12994 4 © Copyright 2003 by Koninklijke Brill NV, Leiden, The Netherlands All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from the publisher. Authorization to photocopy items for internal or personal use is granted by Brill provided that the appropriate fees are paid directly to The Copyright Clearance Center, 222 Rosewood Drive, Suite 910 Danvers MA 01923, USA. Fees are subject to change. printed in the netherlands
49-*2*247>4+2>+&9-*7&uÈ) 94 2>249-*7&3)-*7'749-*7u ') 11À-&3) 942>8.'1.3,8&¿7&3)&>>
This page intentionally left blank
7$%/(2)&217(176 /,672)),*85(6[LL $&.12:/('*(0(1T6[LLL ,1752'8&7,21$17,&,3$7,1*7+,6:25.[Y ,7KH,VVXHV [Y ,,7KHu ''À8.)433*(9.43DQG,WV,PSDFWRQWKH3ULPDU\$UDELF 6RXUFHV³7KHu ''À8.).&-[Y ,,7KHu ''À8.).&- [Y ,,7KH,PSDFW4+9-*u ''À8.).&-RQWKH3ULPDU\ 6RXUFHV [[L ,,,0RGHUQ6FKRODUVKLSRQWKH,VVXHV [[Y ,97KLV%RRNRQWKH,VVXHV [[[LLL 127(21&219(17,21 [[[YLL 3$5721( 7+(6(&5(7+,67254+9-** (425742.8*)-.85*7843&1(42+479949&2*9-*+&(.1.9>+472>5:7548*8 ".9-4:9 -.8 .35:9 9-* 6:&39.9&9.;* )&9& (4:1) 349 -&;* '**3 897*&21.3*).3&3>:8&'1*+472(422&3)**7*)-.8*3):7*) -74:,-9-*2:19.51*89&,*84+9-**;41:9.434+9-*2&3:8(7.59-&;* '**3 9-* 7*(.5.*39 4+ .3;&1:&'1* -*15 >&- 78 &3À Àr.)'*> .88 &3À .8-1È &3) .88 &3À .'1È3È 9>5*) 5744+7*&) &3)47 (477*(9*) 842* (-&59*78 7 À2.7 -Ë2&7 -*15*) &- ¼&7' 9>5*) 9-* 2&/47 5479.43 4+ 9-* '440 &3) *=97&(9*)9-*+.7897& -*,*3*748.9>9-* 3.;*78.9>4+474394*=9*3)*)942*.39-**&71> 8 &3) 9-&9 4+ 9-* 2*7.(&3 3.;*78.9> 4+ *.7:9 (:77*391> 2&)* 9-* ,*3*8.8 4+ 9-.8 '440 &3) 9-* '440 .98*1+ 5488.'1* ".9-4:9 9-* 433&:,-98(-41&78-.59*3&'1*&99-*+.789 &3) )**5 ,7&9.9:)* 7*2&.38 2.3* 94 (-*7.8- ':9 2> 1:(.) 9-&308 ,4 4:9 94 &11 4+ 9-* &'4;* 3 43* 2*&8:7* 47 &349-*7 9-*> -&;* &11 '**3 5&793*78.39-.8'440988-479(42.3,8-42.3*
,1752'8&7,21
$17,&,3$7,1*7+,6:25. ,7KH,VVXHV 7KH WLPH IUDPH IRU WKLV VWXG\ LV WKHODVW WKUHH GHFDGHVRI WKH8PD\\DG FDOLSKDWH FD ,WV JHRJUDSKLFDO VHWWLQJ LV .ËIDK DQG .KXUÀVÀQ7KHKLVWRULFDORFFXUUHQFHLWDWWHPSWVWRXQGHUVWDQGLVWKHIDOO RI WKH 8PD\\DG FDOLSKDWH³RU ¶7KH $UDE .LQJGRP· DV -XOLXV :HOOKDXVHQ DSWO\ WHUPHG LW ,WV LPPHGLDWH VXEMHFW LV WKH FODQGHVWLQH 2UJDQL]DWLRQ XVXDOO\ UHIHUUHG WR DV WKH +ÀVKLPL\\DK ZKLFK LQLWLDWHG DQG FRRUGLQDWHG WKH HIIRUW WKDW FXOPLQDWHG LQ WKLV KLVWRULFDO RFFXUUHQFH³WKH 5HYROXWLRQ 7KH NH\ TXHVWLRQ LV WKH LGHQWLW\ RI WKH DJHQWV DQG IRUFHV WKDW XVKHUHGLQ VXFKD GUDPDWLFFKDQJHDW WKH HQGRI WKHSHULRG 7KLVLVDFRPSOH[TXHVWLRQWKDWLQYROYHV WKUHHLVVXHV WKH LGHQWLW\RIWKHEUDQFKRIWKH3URSKHW·VIDPLO\LQZKRVHQDPHWKHDJHQWV RI WKH 2UJDQL]DWLRQ KDG FRQGXFWHG WKHLU SURSDJDQGD DQG WKDW RI WKH EUDQFKLQZKRVHQDPHWKHIRUFHVRIWKH5HYROXWLRQWKUHHGHFDGHVODWHU EURXJKW GRZQ WKH 8PD\\DG &DOLSKDWH WKH LGHQWLW\ RI WKH DJHQWV RI WKH 2UJDQL]DWLRQ DQG WKH LGHQWLW\ RI WKH IRUFHV RI WKH 5HYROXWLRQ 7KH ILUVW LVVXH LV FDOOHG WKH u$EEÀVLG FRQQHFWLRQ WKH ODVW WZR DUH SUHSRQGHUDWHO\GHPRJUDSKLF ,,7KHu$EEÀVLG&RQQHFWLRQDQG,WV,PSDFWRQWKH3ULPDU\$UDELF6RXUFHV³7KH u$EEÀVLG5LZÀ\DK ,,7KHu$EEÀVLG5LZÀ\DK 7KH2UJDQL]DWLRQFRQGXFWHGLWVDFWLYLW\XQGHUWKHVORJDQDOGD¶ZDKLOÀDO ULÉÀPLQ¯O0XDPPDGDVORJDQWKDWFDQEHSDUDSKUDVHGDVDFDOOIRUWKH FKRLFH RI D OHDGHU IURP WKH IDPLO\ RI WKH 3URSKHW ZLWK ZKRP 0XVOLPV ZRXOGILQGVDWLVIDFWLRQWKHWHUPDOULÉÀPHDQLQJRQHZKRLVDFFHSWDEOH RQH ZKR JLYHV VDWLVIDFWLRQ 7KH HIIRUWV RI WKH 2UJDQL]DWLRQ KDG DV DQ HQGUHVXOW WKH LQVWDOODWLRQ RI D FDOLSK IURP WKH u$EEÀVLG OLQH RI WKH 3URSKHW·VFODQ7KHQFDPHWKHFODLPWKDWWKH2UJDQL]DWLRQKDGDFWXDOO\ EHHQDOODORQJFRQGXFWLQJLWVDFWLYLWLHVRQEHKDOIRIDNQRZQ,PÀPIURP WKLV OLQH DQG WKDW DO5LÉÀ ZDV LQ HIIHFW KLV FRGH QDPH 7KHUHDIWHU WKH HQWLUH WKUHHGHFDGHORQJ VWUXJJOH FDPH WR EH XQLYHUVDOO\ NQRZQ DV DO
[YL ,1752'8&7,21 'DuZDK DOu$EEÀVL\\DK 7KH u ''ÀVLG .88.43 DQG WKH FDWDFO\VPLF XSKHDYDO DV DO'DZODK DOu$EEÀVL\\DK 7KH u$EEÀVLG 5HYROXWLRQ /DWHQW LQ WKLV LV D TXHVWLRQ RI WKH DXWKHQWLFLW\ RI WKLV u$EEÀVLG FODLP 4XLWH DVLGH IURP WKH LGHRORJLFDO LVVXH RI u$EEÀVLG OHJLWLPDF\ ZLWK UHVSHFW WR WKHGLIIHUHQWFODLPVWRWKH3URSKHW·VOHJDF\WKLVLVSULPDULO\DKLVWRULFDO KLVWRULRJUDSKLFDO LVVXH ,Q LWV KLVWRULFDO GLPHQVLRQ ZH PLJKW FDOO LW WKH u$EEÀVLG FRQQHFWLRQ LQ LWV KLWRULRJUDSKLFDO GLPHQVLRQ ZH PLJKW FDOO LW WKHu$EEÀVLGULZÀ\DKYHUVLRQ ,Q WKLV SUREH OLNH LQ QR RWKHU KLVWRU\ DQG KLVWRULRJUDSK\ DUH LQVHSDUDEOH$WHYHU\MXQFWXUHRIHYHQWVZKHUHWKHu$EEÀVLGFRQQHFWLRQ EHDUV RQ WKH DIIDLUV RI WKH 2UJDQL]DWLRQ WKH VWXG\ EHFRPHV DQ H[HUFLVH LQDSSOLHGKLVWRULRJUDSK\ 7KHu$EEÀVLGVRQO\VL[\HDUVDIWHUWKHLUQRPLQDODFFHVVLRQWRSRZHU ZHUHDEOHWRH[WHQGWKHLUKHJHPRQ\DQG¶FRQILVFDWH·WKHDQQDOVRIERWK WKH2UJDQL]DWLRQDQGWKH5HYROXWLRQ7KHLU¶KLMDFNLQJ·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¶KLMDFNHU· DQG LWV ¶UHFRUGV· ZHUH FDUHIXOO\¶QXUVHG·7KHu$EEÀVLGVDFTXLUHGDPRQRSRO\ZKLFKJDYHWKHLU ODWHU SURSDJDQGD KDQGOHUV D IUHH KDQG IRU HQGOHVV LQWHUSRODWLRQV HVSHFLDOO\ZKHUHDQDFWLYHUROHIRUWKHLU,PÀ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u$EEÀVLG ULZÀ\DK ZKLFK ZLOO FURSXSDFURVVWKLVERRN $VLGHIURPWKHEDVLFZHDNQHVVRIWKHLUFODLPZKLFKWKH\DWWHPSWHGWR FXUH E\ DSRFDO\SWLF SURSKHFLHV KLVWRULFDO LQWHUSRODWLRQV DQG WKH IDOVH
$17,&,3$7,1*7+,6:25.
[YLL
FODLP RI KDYLQJ UHFHLYHG WKH ZD¿L\\DK IURP $EË +ÀVKLP LEQ 0XDPPDGLEQDO¼DQDIL\\DKDPDMRUIODZLQWKHu$EEÀVLGV·SUHWHQFH ZDV WKH JDS RI WKUHH PRQWKV EHWZHHQ WKH WULXPSK RI WKH 5HYROXWLRQ VXSSRVHGO\ODXQFKHGLQWKHLUQDPHDQGWKHHYHQWXDOSURFODPDWLRQRID FDOLSKIURPWKHLUQXPEHU7KLVLQWHUUHJQXPZDVWKHPDMRUDLOPHQWWKHLU SURSDJDQGD PDFKLQH KDG WR FRQWHQG ZLWK 8QOLNH RWKHU LQWUD 2UJDQL]DWLRQ DIIDLUV WKH HYHQWV RI WKHVH WKUHH PRQWKV ZHUH D PDWWHU RI SXEOLFUHFRUGZKLFKFRXOGQRWEHFRPSOHWHO\REOLWHUDWHG6LQFHLWFRXOG QRWEHKLGGHQDZD\WKHDQRPDO\RIQRWSURFODLPLQJWKHYLFWRULRXV,PÀP LPPHGLDWHO\ XSRQ YLFWRU\ KDG WR EH H[SODLQHG DZD\ 7KH WUXH H[SODQDWLRQ WKDW WKH WLPH ZDV FRQVXPHG E\ WKH DERUWHG VHDUFK IRU D ULÉÀ GLG QRW RI FRXUVH VXLW WKHLU EDVLF FODLP WKDW DO5LÉÀ ZDV D FRGH QDPH IRU WKH u ''À8.) ,PÀP 7KH u$EEÀVLG H[SODQDWLRQ UHVWHG RQ WZR SLOODUV PDQLSXODWLQJ WKH GDWHV WRZDUGV VKRUWHQLQJ WKH LQWHUUHJQXP DQG EODPLQJ D FXOSULW IRU WKH UHPDLQGHU RI WKH LQWHUUHJQXP ZKLFK FRXOGQRWEHFRPSOHWHO\HUDVHG )LQGLQJ WKH FXOSULW ZDV WKH HDVLHU SDUW $EË 6DODPDK DO.KDOOÀO·V HIIRUWVWRLPSOHPHQWWKHSULQFLSOHRIFKRRVLQJDULÉÀE\FRQVXOWDWLRQZHUH GLVWRUWHG +H ZDV VLPSO\ DFFXVHG RI WZR WUHDFKHULHV LOOHJLWLPDWHO\ KDUERULQJ u$OÈG V\PSDWKLHV WKXV KLV RSHQ FRQVXOWDWLRQV ZHUH GHSLFWHG LQWKHu$EEÀVLGULZÀ\DKDVFRQVSLUDWRULDOHIIRUWVWRWUDQVIHUWKHLPÀPDWHWR RQHRIu$OÈ·VGHVFHQGDQWVIURP)ÀLPDK GHWDLQLQJWKHu$EEÀVLGIDPLO\ XSRQ WKHLU DUULYDO LQ .ËIDK DQG FRQFHDOLQJ WKHLU SUHVHQFH IURP WKHLU 6KÈuDK %ODPLQJ D FXOSULW PD\ H[SODLQ WKH GHOD\ LQ SURFODLPLQJ WKH FDOLSK %XW WKDW ZDV QRW VXIILFLHQW 7KH u$EEÀVLG ULZÀ\DK KDG DOVR WR HVWDEOLVK WKDWLIWKHFDOLSKZDVQRWSURFODLPHGRQWLPHLWGLGQRWPHDQWKDWWKH LGHQWLW\ RI WKH ,PÀP ZDV QRW NQRZQ 7RZDUG WKLV HQG WKH VWDQGDUG u$EEÀVLG DSRFDO\SWLFV DVVHUWLQJ WKH DXWRPDWLF VXFFHVVLRQ RI $EË DO u$EEÀV WR KLV EURWKHU ,EUÀKÈP·V LPÀPDWH ZHUH VXSSOHPHQWHG E\ D PDQLSXODWLRQRIWKHFKURQRORJ\RI WKH UHOHYDQWHYHQWVWKXVWKHDWWHPSW WR XQLI\ WKH GDWHV RI WKH FDSWXUH RI .ËIDK E\ WKH 5HYROXWLRQDU\ IRUFHV ZLWK WKDW RI ,EUÀKÈP·V GHPLVH LQ 0DUZÀQ ,,·V SULVRQ LQ ¼&77À3 7KH LQWHUUHJQXP ZDV WKXV VKRUWHQHG WR QHJOLJLEOHQHVV DQG WKH UHPDLQGHU ZDV HDVLO\ H[SODLQHG DZD\ ,W LV QRW WKDW WKH 5HYROXWLRQDULHV GLG QRW NQRZ ZKR WKHLU ,PÀP ZDV LW LV MXVW WKDW WKH\ GLG QRWNQRZ WKDWKHKDG MXVWGLHGLQ¼DUUÀQDQGWKDWKLV*RGFKRVHQVXFFHVVRUKDGEHHQLQWKHLU PLGVWIRUVRPHWLPH
([WULFDEOHIURPWKHMXPEOHRIFRQIXVHGDQGFRQWUDGLFWRU\DFFRXQWVZKLFKFRQVXPH WKH EHWWHU SDUW RI WKHu$EEÀVLG ULZÀ\DKRI WKHHYHQWV RIWKH WKUHHPRQWKV JDS6HHLQIUD SS
[YLLL ,1752'8&7,21 7KH YDULRXV DQG FRQWUDGLFWRU\ UHSRUWV RQ ,EUÀKÈP·V DUUHVW DQG KLV IDWHLQSULVRQDUHH[DPLQHGLQGHWDLOE\.ZKLFK ODZIXOO\EHORQJVWR@SDUHQWDOXQFOHV )RU 0DUZÀQ·V YHUVHV DQG VRPH RWKHU SRHWLF H[SUHVVLRQV RI WKH WZR VLGHV RI WKH FRQWURYHUV\ VHH ,EQ $EÈ ¼DI¿DK SS ,EQ DO 0XuWD]] S ,¿IDKÀQÈ $JKÀQÈ;SS $NKEÀUSS%D1À)-:7È$QVÀEDO$VKUÀI,,,S $NKEÀUSSDEDUÈ,,S$]GÈS
[[ ,1752'8&7,21 u$EEÀVLG LGHRORJ\ DV WKH FODLP ZHQW WKHQ WKH 2UJDQL]DWLRQ PXVW KDYH NQRZQ ZKR WKH DXWRPDWLF VXFFHVVRU ZDV³WKH DEVHQFH RI D ZD¿L\\DK QRWZLWKVWDQGLQJ ,I $EË DOu$EEÀV ZDV WKH GHVLJQDWHG UDWKHU WKDQ WKH SUHRUGDLQHG KHLU WKHQ WKH UHOHYDQFH RI ,EUÀKÈP·V DOOHJHG ZD¿L\\DK ZRXOG EH SDUDPRXQW ,I RQ WKH RWKHU KDQG WKH LGHRORJ\ ZDV DV LW DFWXDOO\ ZDV D ODWHU HODERUDWLRQ DQG WKH 2UJDQL]DWLRQ·V OLQN WR WKH u$EEÀVLGV ZHUH D SROLWLFDO FRPPLWPHQW WR WKH FDXVH RI D ULÉÀ IURP WKH G\QDVW\WKHQWKHPRVWHOLJLEOHVXFFHVVRUWR,EUÀKÈPZLWKLQWKHG\QDVW\ ZRXOGSUREDEO\KDYHEHHQWKHPLGGOHEURWKHU$EË-DuIDU³KLVQRQ$UDE PDWHUQDO OLQHDJH EHLQJ LQVLJQLILFDQW LQ WKH 2UJDQL]DWLRQ·V LGHRORJLFDO PLOLHX³RURQHRIWKHXQFOHVSUREDEO\u$EG$OOÀKLEQu$OÈRUVRPHRQH HOVH EXW QRW WKH \RXQJHU DQG ZHDNHU EURWKHU $EË DOu$EEÀV ,Q DOO FDVHV WKH GHWULPHQWDO TXHVWLRQ UHPDLQV ZK\ ZDV WKH PRUH HOLJLEOH RU WKH GHVLJQDWHG RU WKH SUHRUGDLQHG KHLU QRW SURFODLPHG LPPHGLDWHO\ DIWHUWKH2UJDQL]DWLRQHVWDEOLVKHGLWVUXOHLQ.ËIDK" 7KLV ZDV WKH UHDO LVVXH ZLWK ZKLFK WKH u$EEÀVLG SURSDJDQGD KDG WR FRQWHQG $V IDU DV WKH TXHVWLRQ RI WKHXQLQWHUUXSWHG¶VXEVLVWHQFH· RIWKH LPÀPDWH LQ D OHJLWLPDWH ,PÀP ZHQW DQ HDUOLHU GDWH RI ,EUÀKÈP·V DUUHVW DQG HYHQ KLV HDUO\ GHDWK LV E\ LWVHOI DV LUUHOHYDQW DQG XQEHDULQJ DV D ODWHU GDWH $V ORQJ DV WKH TXHVWLRQ RI SURFODLPLQJ D FDOLSK GLG QRW EHFRPH SHUWLQHQW WKH TXHVWLRQ RI DQ LQWHUUHJQXP ZDV D QRQLVVXH %XW ZKHWKHU ,EUÀKÈP ZDV DUUHVWHG FD RU LQ 0XDUUDP $XJXVW6HSWHPEHU WKH SHUWLQHQW DQG SUREOHPDWLF TXHVWLRQ SRVHG E\ WKH XQGHQLDEOH UHDOLW\RI WKH LQWHUUHJQXPUHPDLQHGWKHVDPH :K\ZDVWKH,PÀPQRWLPPHGLDWHO\SURFODLPHGFDOLSK"$QGLWKDGWREH DGGUHVVHGE\GLIIHUHQWPRUHHIIHFWLYHPHDQV 7KHUHIRUHu$EEÀVLGSURSDJDQGDDYDLOHGLWVHOIRIDOOWKHRSSRUWXQLWLHV WKDW HDFK RI WKH WZR VHWV RI HDUO\ DQG RI ODWH GDWHV IXUQLVKHG ZLWKRXW ERWKHULQJ ZLWK WKH UHVXOWLQJ LQFRQVLVWHQFLHV )RU H[DPSOH GHVSLWH LWV GUDZEDFNV D UHSRUW GDWLQJ ,EUÀKÈP·V DUUHVW WR DOORZV DPSOH URRPIRUDGDULQJDGYHQWXUHE\&&'&-ZKRJRWKLPVHOILPSULVRQHG LQ RUGHU WR HVWDEOLVK FRQWDFW ZLWK ,EUÀKÈP DQG EHDU ZLWQHVV WR WKH GHVLJQDWLRQ RI $EË DOu$EEÀV DV VXFFHVVRU $W WKH VDPH WLPH XQLI\LQJ WKH GDWH RI ,EUÀKÈP·V GHDWK ZLWK WKDW RI WKH .KXUÀVÀQL\\DK·V DGYHQW LQ .ËIDK DQG VKRUWHQLQJ WKH SHULRG EHWZHHQ WKHVH WZR HYHQWV RQ RQH KDQG DQG WKH HYHQWXDO ¶GUHGJLQJ· RI $EË DOu$EEÀV IURP WKH EDVHPHQW ZKHUH$EË6DODPDKKDGDOOHJHGO\KLGGHQKLPRQWKHRWKHKDQGDOORZ IRU WKH DVVHUWLRQ LQ VRPH DFFRXQWV WKDW WKH .KXUÀVÀQL\\DK KDG QRW NQRZQ RI ,EUÀKÈP·V GHPLVH EHIRUH PHHWLQJ KLV IDPLO\ LQ .ËIDK 7KHQ ZKHQWKHVHWZRVLPXOWDQHRXVGLVFRYHULHVGDZQHGRQWKH.KXUÀVÀQL\\DK
u8\ËQSS
$17,&,3$7,1*7+,6:25.
[[L
DO6DIIÀ ZDV LPPHGLDWHO\ SURFODLPHG FDOLSK 7KH LQWLPDWLRQ LV WKDW QR UHDO LQWHUUHJQXP LQ WKH 2UJDQL]DWLRQ·V UHFRJQLWLRQ RI u$EEÀVLG OHJLWLPDF\LHQRFRQVWLWXWLRQDOYRLG H[LVWHG 2SWLPL]LQJ RQ WKH PDQLSXODWLRQ RI WKH FKURQRORJ\ DQ DFFRXQW LQ DEDUÈFODLPVWKDW$EËDOu$EEÀVDQGKLVNLQDUULYHGLQ.ËIDKLQ¸DIDU DQGZHUHGLVFRYHUHGE\WKHLU6KÈuDKIRUW\GD\VODWHU%XWHYHQZLWKWKLV URFNERWWRP LQWHUYDO DQG WKH EHVW RI DOO SRVVLEOH SUHVHQWDWLRQV WKH XQGHQLDEOH LQWHUUHJQXP VWLOO UHTXLUHG IXUWKHU H[SODQDWLRQ $QG IXUWKHU H[SODQDWLRQ ZDV IXUQLVKHG WKURXJK WKH GHPRQL]DWLRQ RI $EË 6DODPDK DVZLOOEHVKRZQODWHU ,,7KH25&(94+9-*u$EEÀVLG5LZÀ\DKRQWKH3ULPDU\6RXUFHV 7KDW LQ HVVHQFH LV ZKDW ZH FDOO LQ WKLV ERRN WKHu$EEÀVLG ULZÀ\DK ,WLV LQVHSDUDEOH IURP WKH LVVXH RI WKH u$EEÀVLG FRQQHFWLRQ VLQFH WKLV ODWWHU H[LVWV RQO\ LQ WKLV ULZÀ\DK ,W LV KRZHYHU VR DOOSHUYDVLYH WKDW QR RWKHU ULZÀ\DK H[LVWV 2QO\ WKH IDLQWHVW KLQWV RI GLVSHUVHG HOHPHQWV RI RWKHU YHUVLRQVPD\EHWUDFHGLQWKHVRXUFHV+HQFHWKHVWXG\RIWKHu$EEÀVLG FRQQHFWLRQDQGWKHVHFUHWKLVWRU\RIWKH2UJDQL]DWLRQLVLWVHOIDVWXG\RI WKHu$EEÀVLGULZÀ\DK,QWKLVUHVSHFWLWLVWKHLQGLYLGXDODFFRXQWVQRWWKH VSHFLILFVRXUFHVWKDWFRXQW$QGLWUHTXLUHVSDLQVWDNLQJH[DPLQDWLRQVRI WKHVH LQGLYLGXDO DFFRXQWV WR H[SRVH DQG HOLPLQDWH WKH LQWHUSRODWLRQV RI WKHu$EEÀVLGULZÀ\DK,WULHGWRDSSO\DULJRURXVDQGFULWLFDODSSURDFKRI LQWHUQDOH[DPLQDWLRQRIWKHUHSRUWVLQGLYLGXDOO\DQGLQFRPSDULVRQZLWK RQHDQRWKHUDVZHOODVWRJHWKHULQVXFKDPDQQHUDVWRHOLFLWDWHQDEOH ZKROH FRPSDWLEOH ZLWK DOO RI LWV FRPSRQHQW SDUWV DQG LQ FRQFRUGDQFH ZLWKWKHEDVLFVWUXFWXUHRIWKHKLVWRU\RIWKHDJH 7KH EDVLF VWUXFWXUH RI WKH KLVWRU\ RI WKH 8PD\\DG SHULRG KDV QRW FKDQJHGPXFKVLQFHWKHSXEOLFDWLRQRIDEDUÈ·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
DEDUÈ,,,S-DKVKD\ÀUÈS0DVuËGÈ,9S DEDUÈ,,,S
[[LL ,1752'8&7,21 WR WKH SUHYDLOLQJ ¶FRQYHQWLRQDO ZLVGRP· ,W FRXOG DV OLNHO\ SURGXFH FRUURERUDWLYHHYLGHQFHYLQGLFDWLQJWKHORQJKHOGYLHZV 7KLVLVE\QRPHDQVDFDOOWRVWRSYLJRURXVDQGSURIRXQGHQTXLU\%XW LW FHUWDLQO\ LV D FDOO WR UHIUDLQ IURP KXQWLQJ IRU VHQVDWLRQDO GLVFRYHULHV DQG IURP DWWHPSWLQJ WR UHZULWH WKH EDVLF KLVWRU\ RI WKH SHULRG RQ WKH VWUHQJWK RI WZLVWHG³IRUFHG RU JHQXLQHO\ PLVXQGHUVWRRG³ LQWHUSUHWDWLRQV RI VXFK GLVFRYHULHV ,W LV D FDOO WR VORZ GRZQ UHVSHFW WKH WH[WXDO DQG FRQWH[WXDO LQWHJULW\ RI WKH VRXUFHV DQG JLYH RXUVHOYHV WKH WLPH WR XQGHUVWDQG WKHLU LPSOLFDWLRQ³WUXO\ 7KH DSRFU\SKDO DQG WKH YHUDFLRXV HOHPHQWV RI WKH WUDGLWLRQV KDYH EHHQ DOPRVW DOZD\V FRQVSLFXRXVLQWKHQHZO\GLVFRYHUHGDVZHOODVLQWKHSUHYLRXVO\NQRZQ VRXUFH PDWHULDO (YHQ LQ DEDUÈ DQG DOO RWKHU VRXUFHV WKH u$EEÀVLG FRQQHFWLRQ LV QRW D FRPIRUWDEOH IDLW DFFRPSOL 7KHUH LV PRUH UHDVRQ QRZ WR VXVSHFW WKDW WKH DOOHJHG HDUO\ u$EEÀVLG FRQQHFWLRQ WR WKH 2UJDQL]DWLRQ LQ ERWK .ËIDK DQG .KXUÀVÀQ ZDV D ODWHU H[DJJHUDWLRQ LI QRWDQRXWULJKWIDEULFDWLRQDQGWKDWWKH2UJDQL]DWLRQKDGUHPDLQHGWLOO LPPHGLDWHO\ DIWHU LWV YLFWRU\ QRQFRPPLWWDO DQG WKDW LW NHSW LWV OLQHV DQGLWVRSWLRQVRSHQWRDOOSRWHQWLDO+ÀVKLPLWHFDQGLGDWHV 2IWKHPDMRUSULPDU\$UDELFVRXUFHVWKDWKDYHVLQFHEHHQSXEOLVKHG LQ ZKROH RU LQ SDUW VXFK DV %DOÀGKXUÈ·V 38À' DO$VKUÀI ,,, LW FDQ UHDVRQDEO\EHVDLGWKDWQRRQHVLQJOHQHZO\GLVFRYHUHGVRXUFHFDOOVIRUD IXOOIOHGJHG UHH[DPLQDWLRQ RI WKH LVVXHV PRUH WKDQ $NKEÀU DO'DZODK DO u ''À8.>>&-GRHV $NKEÀU UHFHLYHG ZHOO GHVHUYHG DSSUDLVDO EHIRUH DQG DIWHU LWV SXEOLFDWLRQ,WVHGLWRUVGDWHGLWVDXWKRUVKLSWRWKHPLGWKLUGPLGQLQWK FHQWXU\ 7KLV HDUO\ GDWH PDNHV WKH DXWKRU DSUHGHFHVVRURIDEDUÈ E\ DOPRVW KDOI D FHQWXU\ DQG D FRQWHPSRUDU\ RI %DOÀGKXUÈ ,QGHHG KH UHSRUWHG RQ %DOÀGKXUÈ·V DXWKRULW\ DV KH GLG RQ WKH DXWKRULW\ RI RWKHU KLVWRULDQVDQGUHSRUWHUV%XWPRUHLPSRUWDQWLVWKHPDWHULDOKHXQLTXHO\ UHSRUWHG RQ WKH DXWKRULW\ RI LQGLYLGXDOV IURP WKH LQQHU FLUFOHV RI ERWK WKH.ËIDQDQGWKH.KXUÀVÀQLDQ&KDSWHUVRIWKH2UJDQL]DWLRQ,QWKLV $NKEÀU LV D VLQJXODU PLQH RI LQIRUPDWLRQ RQ WKH HDUO\ VWDJHV RI WKH PRYHPHQW DQG RQ VRPH RI LWV VHFUHWV DFWLYLWLHV DQG GHOLEHUDWLRQV ,WV IXOOOLVWVRIWKHPHPEHUVRIWKHOHDGHUVKLSVWUXFWXUHVRIWKH2UJDQL]DWLRQ DUHXQLTXH
'ËUÈ ¶¹DZr· SS 2PDU u$EEÀVLG &DOLSKDWH SS 2PDU XVHG WKH PDQXVFULSWLQKLV3K'WKHVLVEXWKLVUHOLDQFHRQWKHOHVVFUHGLEOHOLVWRIQXTDEÀrLQ DEDUÈZDVXVHGE\6KDEDQWRGLVPLVV$NKEÀU·VYDOXHDV¶H[WUDYDJDQW·u$EEÀVLG5HYROXWLRQ SS [[L[[LL 'ËUÈ ¶,QWURGXFWLRQ· SS 6KDURQ ¶u$EEÀVLG GDuZD· LGHP %ODFN %DQQHUVSS'DQLHO¶$QRQ\PRXV·SS 'ËUȶ,QWURGXFWLRQ·SLGHP¶¹DZr·S 'ËUȶ,QWURGXFWLRQ·SLGHP¶¹DZr·S
$17,&,3$7,1*7+,6:25.
[[LLL
7KHHQWLUHWH[WLVGD]]OLQJ,WLVWKHILUVWFRPSOHWHDQGFRKHUHQWVWRU\ RIWKH5HYROXWLRQZKLFKKDVDOZD\VKHOGDVSHFLDOP\VWLTXHIRUVWXGHQWV RI$UDEVWXGLHV%XWFRPSOHWHDVLWLVLWLVVXSSRVHGWRVROYHWKHULGGOHV LQVWHDG LW LQWHQVLILHV D PRVW SRLJQDQW HOHPHQW RI P\VWLILFDWLRQ :KHQHYHU WKH QDPH RI WKH u$EEÀVLG 0XDPPDG LEQ u$OÈ RU KLV VRQ ,EUÀKÈP DO,PÀP FURSV XS LQ DQ RWKHUZLVH FRKHUHQW DQG WHQDEOH FRQWH[W VRPHWKLQJ VWUDQJH KDSSHQV³D GLVWLQFW IHHOLQJ WKDW WKH WH[W ZDQGHUV EHWZHHQ WZR SDUDOOHO DQG FRPSOHWHO\ GLIIHUHQW ZRUOGV 7KHVH WZR ZRUOGV ZKLFK FRXOG QRW KDYH PHW DV GHVFULEHG WKH WH[W QHYHUWKHOHVV PHUJHV DV RQH 2QH RI WKH WZR PXVW EH ILFWLWLRXV RU HOVH WKH OLQN EHWZHHQ WKHP LV %XND\U LEQ 0ÀKÀQ DQG $EË 6DODPDK DO .KDOOÀO DUH PXOWLGLPHQVLRQDO ILJXUHV LQWR ZKRVH UHDO ZRUOG WKH UHDGHU FDQ UHDGLO\ IHHO WKH ¶JKRVWO\· GLPHQVLRQOHVV 0XDPPDG RU ,EUÀKÈP DUELWUDULO\¶ZDONV·LQDQGRXW (VWDEOLVKLQJWKHOLQNZDVDZRUNRIILFWLRQZKLFKRQFHLQUHDOSRZHU WKHHIIHFWLYHu$EEÀVLGSURSDJDQGDPDFKLQHDFFRPSOLVKHG7KHPDFKLQH GLG QRW KDYH WR WLQNHU PXFK ZLWK IDFWV 7KH MRE LQ WKLV UHVSHFW FDOOHG RQO\ IRU VHFXULQJ D SUHVHQFH RI WKH u$EEÀVLG ,PÀP DW HYHU\ PHDQLQJIXO RU FRUURERUDWLYH MXQFWXUH 7R WKLV HQG IDFWV KDG WR EH WDPSHUHG ZLWK RQO\ WR WKH H[WHQW QHFHVVDU\ DQG VXIILFLHQW /DWHU ZKHQ RWKHU LVVXHV FURSSHGXSWKHPDFKLQHPXVWKDYHKDGWREHKDYHGLIIHUHQWO\$VIDUDV WKHKLVWRU\RIWKHFODQGHVWLQH2UJDQL]DWLRQZHQWWKHMREZDVHDV\DQGLW UHTXLUHGRQO\PLQLPXPEXWSRVLWLYHDGGLWLYH LQWHUIHUHQFH ,W LV IXWLOH WKHUHIRUH WR DWWHPSWLQ WKLV UHJDUG WR PDNH DQ\ JHQHUDO VWDWHPHQWVRQWKHLQGLYLGXDOFKDUDFWHUVRIWKHGLIIHUHQWVRXUFHV7KHIDFW WKDW'KDKDEÈLVODWHGRHVQRWGLVFUHGLWKLP+HH[SUHVVHVLQVLJKWVZKLFK KH PD\ RZH WR FHUWDLQ HOHPHQWV RI D VXEPHUJHG WUDGLWLRQ QR ORQJHU H[WDQW %\ LWVHOI WKH IDFW WKDW WKH ZRUNV RI .KDOÈIDK LEQ .KD\\À $2DG LEQ 7KHOHWWHU@EULQJVEDFNKLVWRULFDOUHVHDUFKWRDWKHRU\ZKLFKYDQ9ORWHQ KDGSUHVHQWHGDQGZKLFK:HOOKDXVHQVXEVHTXHQWO\HODERUDWHG³QDPHO\ WKDW WKRVH ZKR VXSSRUWHG WKH u$EEÀVLG 'DuZDK ZHUH WKH PXOWLWXGH RI PDZÀOÈ GULYHQ E\ 3HUVLDQ ,UDQLDQ QDWLRQDOLVW IHHOLQJV « :KDW PDWWHUV KHUHLVWKDWWKHOHWWHUUHVWRUHVWR>WKLVWKHRU\@LWVZHLJKWDQGVXSSRUWVLW
u$EGDO¼DPÈG·VQHZO\GLVFRYHUHGOHWWHUYLWDODVLWLVDGGVYHU\ OLWWOHWR WKH H[WDQW IUDJPHQW RI D SUHYLRXVO\ NQRZQ RQH %RWK OHWWHUV DGG QRWKLQJ VXEVWDQWLDO WR 1D¿U LEQ 6D\\ÀU·V EÀrL\\DK SRHP RU WR &&'&- LEQ6KDEÈE·VVSHHFKLQ-XUMÀQRUWRQXPHURXVRWKHUSULPHJUDGHWH[WXDO PDWHULDOV TXRWHG YHUEDWLP PRVW RI ZKLFK KDG EHHQ NQRZQ VLQFH WKH QLQHWHHQWK FHQWXU\ EXW ZKLFK KDG EHHQ ODUJHO\ LJQRUHG GLVPLVVHG DV SURSDJDQGD RU PLVUHSUHVHQWHG $FWXDOO\ D UHYLVLRQ RI WKH UHYLVLRQLVW WKHRU\KDGEHHQORQJRYHUGXH,WGLGQRWKDYHWRZDLWIRUWKHGLVFRYHU\ RI u$EG DO¼DPÈG·V OHWWHU RU DQ\ RWKHU QHZ VRXUFH PDWHULDO 7KLV LV VR EHFDXVH WKH SUREOHP ZLWK WKH UHYLVLRQLVW VFKRRO LV QRW D SUREOHP RI VRXUFHVLWLVUDWKHUDSUREOHPRILWVVFKRODUV·DSSURDFKWRWKHVRXUFHV
$VIDUDVWKHVRXUFHVEHDURQWKHTXDQWLWDWLYHVWXG\RIWKHLGHQWLW\RIWKHDJHQWVRI WKH 2UJDQL]DWLRQ VHH WKH VHFWLRQ ¶7KH 6WDWLVWLFDO %DVH³7KH +LVWRULRJUDSKLFDO %DVH· LQIUDSS u$EEÀVS ,ELGSS ¶$EG DO¼DPÈG HSLVWOHV QRV DQG SS ,Q WKLV ZRUN u$EEÀV SXEOLVKHGIRXUWHHQHSLVWOHVRIu$EGDO¼DPÈG·VFRQWDLQHGLQDXQLTXHPDQXVFULSWQHYHU NQRZQ DQG QHYHU SXEOLVKHG EHIRUH 7KH UHPDLQGHU RI u$EG DO¼DPÈG·V HSLVWOHV DOO RI ZKLFKDUHSXEOLVKHGLQWKLVZRUNKDYHEHHQJDWKHUHGIURPRWKHUPDQXVFULSWVDQGIURP SULQWHG SXEOLFDWLRQV VRPH RI WKHP KDG EHHQ NQRZQ HDUOLHU RWKHUV QRW 2I VSHFLILF UHOHYDQFHDUHOHWWHUVQRRIWKHNQRZQDQGQRRIWKHQHZSS 6HHEHORZFKDSWHUHLJKW
$17,&,3$7,1*7+,6:25.
[[Y
,,,0RGHUQ6FKRODUVKLSRQWKH,VVXHV 2Q WKH SHULSKHULHV RI WKH ILUVW LVVXH WKH u$EEÀVLG FRQQHFWLRQ PRGHUQ VFKRODUV KDYH JHQHUDOO\ EHHQ DZDUH DQG VNHSWLFDO RI WKH DSRFU\SKDO TXDOLW\ RI WKH u$EEÀVLG YHUVLRQ RI HYHQWV *HQHUDOO\ VSHDNLQJ WKH FULWLTXHKDVUHYROYHGDURXQGVSHFLILFHYHQWVDQGDFFRXQWV-DFRE/DVVQHU EURXJKWWKLVDSSURDFKWRDQDOPRVWHODERUDWHILHOGE\LWVHOI7KHFHQWHU DURXQG ZKLFK VXFK FULWLFDO VWXGLHV URWDWHG KDV FKLHIO\ EHHQ WKH VWUHQJWK RIWKHu$EEÀVLGFODLPWRWKHOHJDF\RIWKH3URSKHWLQLWVLGHRORJLFDODQG JHQHDORJLFDO GLPHQVLRQV 7KH UHDO GLPHQVLRQ WUXO\ UHOHYDQW WR KLVWRULFDO VWXGLHV ZDV WKXV ORVW KRZ VWHUOLQJ ZDV WKH u$EEÀVLG FODLP RI HDUO\ LQYROYHPHQW ZLWK WKH 2UJDQL]DWLRQ" +RZ HDUO\ ZDV ¶HDUO\·" $QG ZKDW VWDWXVZLWKLQWKH2UJDQL]DWLRQGLGWKHTXDOLW\RIWKLVLQYROYHPHQWZKHQ LW GLG PDWHULDOL]H JLYH WKH u$EEÀVLGV" 7KH HVVHQFH RI WKH LVVXH ZDV E\ DQGODUJHFRQFHGHGWRWKHu$EEÀVLGYHUVLRQRIHYHQWV 7KH ILUVW WR DGGUHVV WKH TXHVWLRQ RI ZKHQ ´WKH 'D¶ZDK >EHFDPH@ u$EEÀVLGµ LV 0RVKH 6KDURQ +RZHYHU 6KDURQ PDLQO\ DGGUHVVHV WKH LVVXH LQ WKH FRQWH[W RI KLV HIIRUWV WR HVWDEOLVK D YDULDQW FKURQRORJ\ RI ZKDW WR KLP KDG HVVHQWLDOO\EHHQ DQDFWLYHu$EEÀVLGUROHLQWKHGDuZDK HYHQ EHIRUH LW LQ KLV UHFNRQLQJ ILQDOO\ WXUQHG SXUHO\ u$EEÀVLG LQ WKH \HDUDIWHU7@KH .KXUÀVÀQÈV PXVW KDYH DGRSWHG WKH FDOO WR DOULÉÀ EHIRUH WKH\ FRPPLWWHG WKHPVHOYHV WR WKH u$EEÀVLGVµ 7KHVH DUH FRUQHUVWRQHV LQ P\ DUJXPHQWV WR ZKLFK &URQH SUHFHGHG PH +RZHYHU VKH GRHV QRW JR PXFK IXUWKHU LQ WU\LQJ WR UHFRQVWUXFWWKHFRQQHFWLRQ+HUILQDOFRQFOXVLRQLV 7KH UHODWLRQVKLS EHWZHHQ WKH G\QDVW\ DQG WKH PRYHPHQW ZKLFK HQWKURQHG LW LV HYLGHQWO\ D SUREOHP ZKLFK WDNHV XV IDU DZD\ IURP WKH PHDQLQJRIDOULÉÀEXWLWVKRXOGEHFOHDUWKDWWKHKLVWRU\RIWKLVPRYHPHQW KDVEHHQVXEMHFWWRPRUHLGHRORJLFDOUHZULWLQJWKDQLVQRUPDOO\DVVXPHG LIDOULÉÀPHDQWZKDWLWDSSHDUVWRKDYHPHDQWZHPXVWFRQIHVVWKDWZHGR QRW\HWRUDQ\ORQJHU NQRZKRZRUZK\WKHu$EEÀVLGUHYROXWLRQFDPHWR EHu$EEÀVLG
2Q WKH GHPRJUDSKLF LVVXHV PRGHUQ ZRUNV WHQG QRW WR GLVWLQJXLVK EHWZHHQWKHWZRYHU\GLVWLQFWLVVXHVWKDWRIWKHLGHQWLW\RIWKHDJHQWVRI WKH 2UJDQL]DWLRQ DQG WKDW RI WKH LGHQWLW\ RI WKH IRUFHV RI WKH 5HYROXWLRQ 6RPH GR GLVWLQJXLVK WKH FODQGHVWLQH VWDJH IURP WKDW RI WKH RSHQUHYROW6KDURQHODERUDWHVWKLVIRUPDODQGFKURQRORJLFDOGLVWLQFWLRQ E\ GHYRWLQJ KLV ILUVW YROXPH WR WKH 'D¶ZDK DQG KLV VHFRQG WR WKH 5HYROXWLRQ +RZHYHU KH PDNHV D GLVWLQFWLRQ RI VRUWV EHWZHHQ WZR JURXSVZLWKLQWKH$UDEFRPPXQLW\LQ.KXUÀVÀQDQGKHDVVRFLDWHVHDFK RIWKHWZRJURXSVWKXVGLVWLQJXLVKHGZLWKRQHRIWKHWZRVWDJHV%\GRLQJ
,ELGS ,ELGS ,ELGSS ,ELGSS ,ELG S ,Q D SRVWVFULSW &URQH PHQWLRQV WKDW ¶7 1DJHO 8QWHUVXFKXQJHQ ]XU
(QWVWHKXQJ GHV $EEDVLGLVFKHQ .DOLIDWHV %RQQ DOVR DUJXHV WKDW DOULÉÀ ZDV D SHUVRQ FKRVHQE\VKËUÀ· 6KDURQ%ODFN%DQQHUV 6KDURQ5HYROW
$17,&,3$7,1*7+,6:25.
[[YLL
VR6KDURQDGGVDGHPRJUDSKLFGLPHQVLRQWRKLVIRUPDOGLVWLQFWLRQ+H DUJXHV IRU ´WKH H[LVWHQFH RI D FOHDU GLYLVLRQ EHWZHHQ WKH $UDE YLOODJH VHWWOHUVDQGWKHIRUFHVRI$UDEPXTÀWLODKµ7KHVHWWOHUVDQGWKHLUPDZÀOÈ KHFRQWHQGVSURYLGHGWKHLQFXEDWLQJFRQWH[WIRUWKHFODQGHVWLQHVWDJH ZKLOH WKH PXTÀWLODK ZHUH WKH ¶ILJKWLQJ IRUFH· RQ ZKRP ´PRUH WKDQ RQ DQ\ RWKHU VLQJOH HOHPHQW LQ WKH SRSXODWLRQ WKH SRSXODULW\ PLOLWDU\ VWUHQJWKDQGILQDOYLFWRU\RIWKHPRYHPHQWGHSHQGHGµ )RUWKHPRVWSDUWWKHUHIRUHWKHWZRLVVXHVKDYHEHHQIXVHGLQWRRQH 7KH GHPRJUDSKLF FRPSRVLWLRQ RI WKH FRQVWLWXHQF\ WKXV XQLILHG KDV QRW EHHQ DQDO\]HG EH\RQG WKH UKHWRULFDO DQG LQIHUHQWLDO DVVHUWLRQV RI WKH SUHSRQGHUDQFH RI RQH HWKQLF JURXS RYHU WKH RWKHU GXULQJ WKH WKUHH GHFDGHV RI WKH 2UJDQL]DWLRQ·V KHWHURJHQHRXV KLVWRU\ $ TXDQWLWDWLYH DSSURDFKWRWKHGHPRJUDSKLFTXHVWLRQKDVQRWKLWKHUWREHHQDWWHPSWHG H[FHSWLQ%XOOLHW·VVWXG\RIFRQYHUVLRQ$OWKRXJKYRXFKLQJIRUDFHUWDLQ HWKQLFLGHQWLW\RIWKHPRYHPHQWKDVEHHQDFRUQHUVWRQHLQDOPRVWDOORI WKH WKHRULHV DGYDQFHG E\ PRGHUQ VFKRODUV UHJDUGLQJ WKH VRFDOOHG ¶u$EEÀVLG 5HYROXWLRQ· WKH LVVXH RI WKH GHPRJUDSKLF FRPSRVLWLRQ RI WKH DJHQWV DQG IRUFHV ZKLFK PDGH LW SRVVLEOH KDV QRW EHHQ DGHTXDWHO\ DGGUHVVHGDVDQLQGHSHQGHQWLVVXH,WKDVDOPRVWDOZD\VEHHQVXEVXPHG LQ D VWXG\ RI WKH KLVWRULFDO UHDVRQV IRU WKH IDOO RI WKH 8PD\\DGV RU WKH ULVHRIWKHu$EEÀVLGV 7KH YLHZV RI PRVW RI WKHVH VFKRODUV RQ WKH PDLQ DQG WKH UHODWHG LVVXHV DUH QRWHG DQG GLVFXVVHG LQ WKH UHOHYDQW SDUWV RI WKLV ERRN 7KH HYROXWLRQ RI WKH FRQWURYHUV\ RYHU WKH HWKQLF LGHQWLW\ RI WKH 5HYROXWLRQ KDV EHHQ SURJUHVVLYHO\ DQG FXPXODWLYHO\ GHSLFWHG LQ WKH PDQ\ UHYLHZV DQG FULWLTXHV RIIHUHG E\ PRUH UHFHQW DXWKRUV RI WKHLU SUHGHFHVVRUV· ZRUNV :LWK UHVSHFW WR WKLV TXHVWLRQ PRGHUQ VFKRODUVKLS PD\ EH GLYLGHG LQWR WZR EURDG VFKRROV :LWK IHZ H[FHSWLRQV LQ ERWK FDVHV WKH ILUVW RI WKH SDLU GRPLQDWHG WKH ILUVW KDOI RI WKH WZHQWLHWK FHQWXU\ ZKLOH WKHVHFRQGGRPLQDWHGWKHRWKHUKDOI 7KH ILUVW VFKRRO WKH FODVVLFDO LV VWLOO EHVW UHSUHVHQWHG E\ -XOLXV :HOOKDXVHQ·V PDVWHUIXO LQVLJKW LQWR DQG PRGHUQ UHDUUDQJHPHQW RI DEDUÈ·V PDWHULDO LQ KLV ZRUN 'DV $UDELVFKH 5HLFK XQG VHLQ 6WXU] ´7KH ILQDO UXLQ RI WKH 8PD\\DGVµ KH ZURWH ´ZDV EURXJKW DERXW E\ D
6KDURQ%ODFN%DQQHUVS ,ELGSI ,ELGS %XOOLHW&RQYHUVLRQ ([DPSOHV'HQQHWW¶0DUZÀQ·SSRIWKH3UHIDFH2PDUu$EEÀVLG&DOLSKDWHSS
6KDEDQ u$EEÀVLG 5HYROXWLRQ SS [LLL [Y 'DQLHO .KXUDVDQ SS Q LGHP ¶7DTÀGXP· Q SS Q S Q S DQG SS LGHP ¶$UDEV 3HUVLRQV· /DVVQHU 6KDSLQJ SS LGHP 5HYROXWLRQ SS [L[LLQ0DUtQ*X]PiQ SS
[[YLLL ,1752'8&7,21 ULVLQJRIWKH6KÈuLWH,UDQLDQV LQ.KXUÀVÀQµ7KDWPXFK*YDQ9ORWHQ KDG UHDOL]HG LQ KLV DVVHUWLRQ WKDW LW ZDV WKH KDWUHG RI WKH RSSUHVVHG 3HUVLDQV WKH 6KÈuLWHV DQG WKH H[SHFWDWLRQ RI D 0HVVLDK WKDW IXHOOHG WKH 5HYROXWLRQ %XW :HOOKDXVHQ DGGV D VRFLRFXOWXUDO GLPHQVLRQ WR YDQ 9ORWHQ·VDOPRVWSXUHO\UDFLDOLQWHUSUHWDWLRQKHVD\V´EXWWKHZD\ZDV SDYHG IRU WKLV ULVLQJ « SDUWLFXODUO\ E\ WKH WULEDO IHXG RI WKH $UDEV RI WKDW TXDUWHUµ :KLOH KH UHFRJQL]HV WKDW WKH PDMRULW\ RI $EË 0XVOLP·V DGKHUHQWV ZHUH ,UDQLDQV LH WKDW WKH\ ´FRQVLVWHG RI ,UDQLDQ SHDVDQWV DQG RI WKH 0DZÀOÈ RI WKH YLOODJHV RI 0DUZµ :HOOKDXVHQ DOVR UHDOL]HV WKDW ´WKHUH ZHUH $UDEV DPRQJ WKHP DOVR ZKR PRVWO\ RFFXSLHG OHDGLQJ SRVLWLRQVµ 7KXV KH WHPSHUV YDQ 9ORWHQ·V UDFLDO LQWHUSUHWDWLRQ DOEHLW KH VWLOO YRXFKHV IRU 3HUVLDQ SUHSRQGHUDQFH DQG DQ DFWLYH UROH RI WKH 6KÈuLWH LGHRORJLFDO GLPHQVLRQ $FURVV WKH UD\V RI WKLV VSHFWUXP WKH QRWLRQ RI ORVV RI $UDE VXSUHPDF\ UHPDLQV WKH NH\ QRWLRQ ´7KHLGHD RI WKHRYHUWKURZRIWKH¶$UDE.LQJGRP·LQIDYRURIDFRVPRSROLWDQ,VODPLF VWDWHµVD\V'DQLHO´EHFDPHWKHVWDQGDUGLQWHUSUHWDWLRQRIHDUO\,VODPLF KLVWRU\ DQG GRPLQDWHG WKH VHFRQGDU\ OLWHUDWXUH IRU PRUH WKDQ ILIW\ \HDUVµ $FWXDOO\ HYHQ ZLWK WKH SUROLIHUDWLRQ RI UHYLVLRQLVW ZRUNV WKLV WKHRU\KDVQRWFRPSOHWHO\ORVWLWVLQIOXHQFH 7KHVHFRQGVFKRROWKHUHYLVLRQLVW LVIRUPDOO\UHFRJQL]HGE\VRPHWR KDYH VWDUWHG ZLWK 'HQQHWW·V FKDOOHQJH LQ RI :HOOKDXVHQ·V FRQFOXVLRQV%XWHYHQEHIRUHWKDWLQ+$5*LEEKDGZULWWHQ 7KH 7UDGLWLRQ RI WKH HQWKXVLDVP RI WKH ,UDQLDQV IRU $EË 0XVOLP LV WUXH RQO\RIWKHSHULRGDIWHUKLVVXFFHVV,QRXUPRVWDXWKHQWLFUHFRUGVWKHUHLV QRWUDFHRIDPDVVPRYHPHQWVXFKDVKDVVRRIWHQEHHQSRUWUD\HG
+RZHYHU *LEE DFWXDOO\ FKDOOHQJHG WKH WKHRU\ RI WKH PDVVLYH IROORZLQJ RIWKHXSULVLQJRQO\QRWLWVHWKQLFLGHQWLW\7KHWKHRU\RID3HUVLDQULVLQJ UHPDLQHG WKHUHIRUH XQFKDOOHQJHG XQWLO 'DQLHO 'HQQHWW DWWHPSWHG WR HVWDEOLVK WKDW ´WKH ILQDO FULVLV ZKLFK EURXJKW WR DQ HQG WKHG\QDVW\DQG WKH HPSLUH ZDV QRW WKH XSULVLQJ RI 3HUVLDQ LH QRQ$UDE HOHPHQWV DV YDQ 9ORWHQ PDLQWDLQV EXW WKH DVVHUWLRQ RI WKH HVVHQWLDO $UDE VSLULW RI LQGHSHQGHQFH DQG KDWUHG RI GLVFLSOLQHµ 2EYLRXVO\ 'HQQHWW GRHV QRW
,ELGS 9ORWHQS&I'HQQHWW¶0DUZÀQ·SRIWKH3UHIDFH'DQLHO.KXUDVDQSQ
'DQLHO.KXUDVDQSQ :HOOKDXVHQS ,ELGS ,ELGS 'DQLHO.KXUDVDQSQ &I6KDEDQu$EEÀVLG5HYROXWLRQS[LLL'DQLHO.KXUDVDQSQ *LEE&RQTXHVWVS 'HQQHWW¶0DUZÀQ·SRIWKH3UHIDFH
$17,&,3$7,1*7+,6:25.
[[L[
GLVDJUHHZLWK:HOOKDXVHQRQWKHQHJDWLYHHIIHFWVRI$UDEWULEDOIHXGVRQ WKH8PD\\DGFDOLSKDWHEXWKHGLVDJUHHVZLWKKLPDQGZLWKYDQ9ORWHQ RQWKHHWKQLFLGHQWLW\RIWKRVHZKRDFWLYHO\IRXJKWWRGHVWUR\LW'HQQHWW VD\V 7KH SRLQW LV WKDW LI WKH $UDE HPSLUH RI WKH 8PD\\DGV ZDV WR EH RYHUWKURZQ QR RQH KDG WKH PLOLWDU\ VWUHQJWK WR GR WKLV H[FHSW WKH $UDEV
5HYHUVLQJLQIXOOPHDVXUHWKHHWKQLFLGHQWLW\RIWKHDJHQWVDQGIRUFHVRI FKDQJH ZDV WKH FUX[ RI WKH ZRUNV RI WZR VFKRODUV 0$ 6KDEDQ LQ KLV 3K'WKHVLV+DUYDUG8QLYHUVLW\ DQGWKHQ)DURXN2PDULQKLV WKHVLV8QLYHUVLW\RI/RQGRQ $FFRUGLQJWR6KDEDQLQKLVZRUN EDVHG RQ KLV HDUOLHU WKHVLV DQG SXEOLVKHG LQ 'HQQHWW·V HIIRUWV GLG QRWFRPHWRIXOOIUXLWLRQGXHWRKLVXQWLPHO\GHDWKDQG2PDU·VDWWHPSW ZDV ULGGOHG ZLWK FRQWUDGLFWLRQV DQG YLUWXDOO\ UHWURJUHVVHG WR :HOOKDXVHQ·V SRVLWLRQ ,W ZDV 6KDEDQZHDUHJLYHQWRXQGHUVWDQGZKR EURXJKWWKHUHYLVLRQDU\HIIRUWVWRPDWXULW\LQKLVSXEOLVKHGZRUN%RWK VFKRODUVFRQWHQGWKDWWKH5HYROXWLRQZDVSUHSDUHGIRUZDJHGDQGZRQ E\ ¶$UDE 6HWWOHUV· 6KDEDQ XQLTXHO\ VWULYHV WR VXSSRUW WKLV WKHRU\ E\ SURYLGLQJ D VRFLRHFRQRPLF LQWHUSUHWDWLRQ RI WKH FLUFXPVWDQFHV ZKLFK OHGWRWKHIRUPDWLRQRIWKLVDOOHJHGFODVVRI¶$UDE6HWWOHUV· $IWHU WKHVH WZR VFKRODUV 0RVKH 6KDURQ SXEOLVKHG LQ D SDSHU LQ ZKLFK KH VWDWHV WKDW WKH WKHVLV RI ´YDQ 9ORWHQ DQG :HOOKDXVHQ « FDQQRW WRGD\ KROG LWV RZQ LQ IDFH RI WKH QHZ VRXUFHVµ 6KDURQ OLNH 6KDEDQ DWWDFKHV WRR PXFK LPSRUWDQFH WR WKH TXHVWLRQ RI $UDE VHWWOHUV LQ .KXUÀVÀQ 8QOLNH 6KDEDQ KRZHYHU 6KDURQ KDV ERWK FODVVHV RI WKH .KXUÀVÀQLWH$UDEVLHWKH¶VHWWOHUV·DQGWKHPXTÀWLODKMRLQHIIRUWVLQWKH RSHQVWDJHRIWKHPRYHPHQW7KH´QHZVRXUFHVµ6KDURQDOOXGHVWRDUH HVVHQWLDOO\$NK'À7DO'DZODK 7KH ZRUNV RI WKHVH WKUHH VFKRODUV KDYH EHFRPH WKH ¶FODVVLFV· RI WKH UHYLVLRQLVW VFKRRO 7KH SRLQW DW ZKLFK WKH WKUHH WKHRULHV FRQYHUJH LH WKDW $UDEV ZHUH WKH PDLQVWD\ RI WKH PRYHPHQW JDLQHG WUHPHQGRXV LQIOXHQFHZKLFKVWLOOSHUPHDWHVVFKRODUO\ZRUN+RZHYHULWKDVQRWJRQH FRPSOHWHO\XQFKDOOHQJHG
,ELGS 6KDEDQu$EEÀVLG5HYROXWLRQS[L +LVWKHVLVZDVODWHUSXEOLVKHGu$EEÀVLG&DOLSKDWHDOVR2PDUDEÈuDWDO'DuZDK 6KDEDQu$EEÀVLG5HYROXWLRQVHHWKHDXWKRU·VLQWURGXFWLRQWRWKLVZRUN 6KDURQ ¶u$EEÀVLG 'DuZD· SS [[L[OL HVS [[[ 6KDURQ·V ZRUNV DUH EDVHG RQ KLV
WKHVLV7KH+HEUHZ8QLYHUVLW\-HUXVDOHP 6KDURQ%ODFN%DQQHUVSDVVLPLGHP5HYROWSDVVLP
[[[ ,1752'8&7,21 (OWRQ'DQLHOSXEOLVKHGKLVZRUNLQ'DQLHOFULWLFL]HV6KDEDQ·V WKHRU\RIDUHVWULFWHGULVLQJLQ0DUZ+HDUJXHVIRUDPDVVULVLQJ 7KH HYLGHQFH LV RYHUZKHOPLQJ WKDW WKH UHYROW UHSUHVHQWHG D WUXH PDVV XSULVLQJ WKURXJKRXW .KXUÀVÀQ « 7KH VWUHQJWK RI WKH PRYHPHQW IORZHG IURPWKHRXWO\LQJ.KXUÀVÀQÈWRZQVWRZDUGV0HUYZKHUHWKHFRQWHVWZDV WREHGHFLGHG
$V IDU DV WKH HWKQLF TXHVWLRQ LV FRQFHUQHG 'DQLHO FRQWHQGV WKDW WKH UHYROXWLRQ LQYROYHG ´ WKH .KXUÀVÀQÈ PDVVHV ERWK ,UDQLDQ DQG $UDE SHDVDQWDQGXUEDQ,WZDVWUXO\DPDVVXSULVLQJZKLFKLQYROYHGYLUWXDOO\ HYHU\ JURXS DQG DUHD LQ WKH SURYLQFHµ %XW LQ ZKDW SURSRUWLRQV KH GRHVQRWYHQWXUHWRVD\ 7KH DUWLFXODWH EXW H[WUHPHO\ QRQFRPEDWDQW DQG RYHUO\ PRGHVW UHIXWDWLRQRIWKHUHYLVLRQLVWWKHRU\FDPHIURPWKHVHDVRQHG8À3u ''À8 LQKLVZRUN43u$EGDO¼&2È) :LWK VRPH RI WKH UHYLVLRQLVWV VRPH RI ZKRP DFFXVH :HOOKDXVHQ RI ¶PLVVLQJ WKH LPSOLFDWLRQV· RI WKH VRXUFH PDWHULDO WKHUH VDW LQ D QHZ WUDGLWLRQ RI ¶PDQKDQGOLQJ· WKH VRXUFH PDWHULDO 7KH DFFHVV WR QHZO\ GLVFRYHUHG VRXUFHV ZKLFK ZHUH QRW DYDLODEOH WR :HOOKDXVHQ ZDV LQ WKH PDLQ WXUQHG WR OLWWOH EHWWHU WKDQ DUELWUDU\ VHOHFWLYLW\ $ ORRVH DSSURDFK WR WKH WH[WXDO SUHFLVLRQ RI WKH PDWHULDO RQO\ DJJUDYDWHG WKH VLWXDWLRQ :HOOKDXVHQ·V SDWLHQFH SUHFLVLRQ ILQH VHQVH RI KLVWRU\ DQG RI WKH ODQJXDJHDQGKLVREMHFWLYLW\DOOEXWYDQLVKHG 7R GDWH WKH FRQWURYHUV\ KDV QRW EHHQ VHWWOHG ,Q D KLVWRULFDO PLOLHX VKURXGHG ZLWK P\VWHU\ ZUDSSHG LQ QXPHURXV P\WKV DQG KLVWRULRJUDSKLFDOO\ ODFNLQJ LQ VRXUFHV RI DUFKLYDO TXDOLW\ FRQWURYHUVLHV FDQQRW EH VHWWOHG QRU VKRXOG WKH\ EH YLHZHG QHJDWLYHO\ %XW ZKLOH SUHPLVHVDQGFRQFOXVLRQVDUHWKHPRUHYLVLEOHDUHQDRIFRQWHQWLRQWKH\ DUH VR RQO\ EHFDXVH WKH\ DUH WKH IRFXV RI LQWHUHVW IRU VHHNHUV RI FRPIRUWDEOH ¶ILQDO WUXWKV· ,W LV WKH PHWKRGRORJLHV RI HVWDEOLVKLQJ SUHPLVHVDQGRIOHDGLQJIURPWKHPWRFRQFOXVLRQVWKDWDUHWKHDUHQDRI UHDO VFKRODUO\ FRQWHQWLRQ &RQWURYHUV\ RYHU FRQFOXVLRQV XVXDOO\ GHJHQHUDWHV LQWR EDWWOHV RI FRQYLFWLRQ ZKHUH WKH ORXGHU FODLPV ILQDO YLFWRU\ &RQWURYHUV\ RYHU PHWKRGRORJLHV XVXDOO\ EORVVRPV LQWR FRQWLQXHG VFKRODUO\ LQTXLU\ ZKHUH WKH VRXQGHU PHUHO\ DWWHPSWV WR SUHVHUYHWKHULJKWWRLQIOXHQFHWKHILQHWXQLQJRIWKHGHEDWH/XFNLO\WKH
'DQLHO.KXUDVDQ ,ELGS ,ELGSFISS ,ELGSFIS u ''À855 &3)8:57&5==.; 6KDEDQu$EEÀVLG5HYROXWLRQSIRUDQH[DPSOH
$17,&,3$7,1*7+,6:25.
[[[L
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À) DOÀÉÈ KDV HVWDEOLVKHG WKH DXWKHQWLFLW\ RI WKH WZR FUXFLDO OHWWHUV ZULWWHQ E\ u$EG DO¼&2È) .'3 $&>À RQ EHKDOI RI WKH FDOLSK 0DUZÀQ ,, DQG VKH GLVFXVVHG WKHP DW OHQJWK DORQJ OLQHV OHDGLQJ WR FRQFOXVLRQVQRWGLVVLPLODUWRP\RZQ ,QKLVERRN0RKVHQ=DNHULSXUSRUWVWR FRQFHQWUDWH RQ WKH UROH RI WKH À?À)À3 >¶WKH LQGHSHQGHQW VPDOO ODQGORUGV DQG ZDUULRUV ZKR FRQVWLWXWHGWKH OHVVHUQRELOLW\ LQ WKH6À8ÀQLG(PSLUH·@ XQGHU WKH 8PD\\DGV XQWLO WKH IRXQGDWLRQ RI WKH u ''ÀVLG UXOH « 7KH $UDE WULEDOPLOLWDU\FODVV UHSODFHG WKH 6À8ÀQLG ZDUULRUV DOWKRXJK WKH ODWWHU PDLQWDLQHG FRKHVLYHQHVV ORQJ DIWHU WKH HVWDEOLVKPHQW RI ,VODP 6XUYLYDO RI WKHVH ZDUULRUV DQG WKH SUREOHPV LQYROYHG LQ DGMXVWLQJ WR WKH QHZ FLUFXPVWDQFHV ZHUH FRQVWDQW VRXUFHV RI GLVRUGHU DQG GHVWDELOL]DWLRQ IRU WKH 8PD\\DG DGPLQLVWUDWLRQ « PDQ\ RI >WKH 2&¶S·@
[[[LL ,1752'8&7,21 WKURXJKRXW WKH 8PD\\DG SHULRG RU DW OHDVW WKH ODVW WKUHH GHFDGHV WKHUHRI :KDWHYHU PHULW 'DQLHO·V DQG &URQH·V UHPDUNV RQ =DNHUL·V ZRUN PD\ KDYH WKH\ GR QRW GHWUDFW IURP WKLV IDFW ,Q P\ EHVW MXGJPHQW =DNHUL·V ZRUN UHPDLQV RQH RI WKH PRVW YLWDO UHFHQW ZRUNV ZKLFKUHVWRUHFRJHQF\WRWKHFODVVLFDOWKHRU\ 2WKHU LPSOLFLW RU H[SOLFLW GLUHFW RU REOLTXH FRQFXUUHQFLHV DQG FRQIOXHQFHV ZLWK WKH FODVVLFDO WKHRU\ KDYH EHHQ LQFUHDVLQJO\ PDWHULDOL]LQJ LQ UHFHQW UHVHDUFK (VSHFLDOO\ DZDUH RI WKH UHOHYDQFH RI WKHLUZRUNVWRWKHPDLQLVVXHV(OWRQ'DQLHODQG3DWULFLD&URQHKDYH EHHQ DGGUHVVLQJ PLFUR LVVXHV ZLWK IDU UHDFKLQJ LPSOLFDWLRQV WR WKH SURFHVV RI UHIXWLQJ WKH UHYLVLRQLVWV·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È ILOOLQJ WLQ\ RU KXJH JDSV $QG WKDQNV WR :HOOKDXVHQ·V UHVSHFWIXO DQG EDODQFHG WUHDWPHQW RI KLV PDWHULDOPRGHUQVFKRODUVKLSRQWKHVXEMHFWHYHQWKDWZKLFKFRQWUDGLFWV KLPKDVEHHQOLWWOHPRUHWKDQIRRWQRWHVRUDGGHQGDWRKLVPRQXPHQWDO FODVVLF³P\HIIRUWKHUHQRQH[HPSW
&ILQIUDFKDSWHUWKUHHDQGSS 6HH'DQLHO¶$UDEV3HUVLDQV·SS&URQH¶u ''À8.)$EQÀr· 'DQLHO¶&6À):2·LGHP¶$UDEV3HUVLDQV· &URQH¶&>&-&3)94 'Ë0XVOLP·VUHYROWUHVSHFWLYHO\
This page intentionally left blank
3$5721(
7+(6(&5(7+,6725%XND\U@VD\LQJ0XDPPDGLEQu$OÈVDLGXQWRPH ¶7KHWLPHKDVFRPHRYHU\RXZKHQWKHXSULVLQJRIDPDQIURPP\IDPLO\ LQ .ËIDK LV LPSHQGLQJ KH VKDOO EH GHOXGHG LQ KLV XSULVLQJ OLNH RWKHUV
,ELGS
%8.$EHIRUHKLP@KDYHEHHQDQGKHVKDOOEHVODLQLQYDLQDQGFUXFLILHG7KRX VKDOWZDUQWKH6KÈuDKLQ\RXUGRPDLQRIKLVHQWHUSULVH·
6HFRQG u$EG $OOÀK LEQ u8PD\U DO0XVOÈ QR UHSRUWV WKDW KH DQG RWKHUVRIWKHVDPH.ËIDQ6KÈuLWHPLOLHXYLVLWHG%XND\UDVKHFDPHEDFN WR .ËIDK IURP 6KDUÀW DW WKH EHJLQQLQJ RI 7KLV FRLQFLGHG ZLWK =D\G·V SUHSDUDWLRQV DQG WKH JURZLQJ DZDUHQHVV RI KLV LPPLQHQW LQVXUUHFWLRQ %XND\U DVNHG ,EQ u8PD\U DERXW WKH QHZV WKXV LQLWLDWLQJWKHIROORZLQJLQWHUHVWLQJFRQYHUVDWLRQ ,>,EQu8PD\U@VDLG¶:HKDYHEHHQVSHDNLQJ>RIWKHIDFW@WKDW=D\GLEQ u$OÈLVDERXWWRUHEHOWKHSHRSOHRI.ËIDKKDYHDJUHHGDEDTD WRULVHZLWK KLP DWWDFKHGDV@DQHLJKERURI%DQË 0XVOL\DK>%XND\U@VDLG¶:RHWR$EË.LGÀP,WLVDVLI,FDQSLFWXUHKLP LPPLQHQWO\ VODLQ RU EDQLVKHG DQG =D\G FUXFLILHG LQ .XQÀVDK· +LV >%XND\U·V@ VWDWHPHQW HQUDJHG PH >,EQ u8PD\U@ EHFDXVH RI P\ V\PSDWKLHVWRZDUGV=D\GDQG=D\G·V)DPLO\VR,VDLG¶WKHQ@ ERDVW QR SUHFHGHQFH >RI D FRQWULEXWLRQ WR KLV FDXVH@· %XND\U VDLG ¶, NQRZ ZKDW \RX GR QRW NQRZ 6WD\LQ\RXUKRPHVDQGDYRLG=D\G·VPHQDQGGRQRWPL[ZLWKWKHPIRU E\ *RG KH ZLOO LQGHHG EH NLOOHG DQGFUXFLILHG LQ WKH JDWKHULQJ SODFH>LQ WKH FRPPXQDO SUHVHQFH@ RI \RXU FRPUDGHV $V IRU ZKDW \RX VDLG DERXW WKH HUDGLFDWLRQ RI WKH UHLJQ RI %DQË 8PD\\DK KRZ LPPLQHQW WKDW LV· 7KHQ KH >%XND\U@ VXPPRQHG KLV EUHWKUHQ >IHOORZ PHPEHUV RI KLV RUGHU@ DPRQJVW WKH 6KÈuDK LNKZÀQXKX PLQD DO6KÈuDK FDXWLRQHG WKHP RI =D\G·VHQWHUSULVHUHOD\HGWRWKHPWKHLU,PÀP·VVWDWHPHQWDERXWKLPDQG RUGHUHG WKHP WR VWD\ LQ WKHLU KRPHV XQWLO WKHLU WLPH FDPH ZKHQ WKHLU EDQQHUZRXOGEHKRLVWHG
7KHDXWKRULQWHUUXSWV,EQu8PD\U·VUHSRUWKHUHWRLQMHFWDGRVHRIQDNHG UHDOLW\ LQWR WKH ZRYHQ DFFRXQW 7KH WKLUG UHSRUWHU %XND\U·V@ZKHQVRPHRQHFDPHWRKLPDQGVDLG¶=D\GKDVULVHQLQUHYROW DQGKDVRUGHUHGWKHSHRSOHWRFRPHWRWKHPRVTXH·>%XND\U@VDLG¶/HWXVPRYHDZD\IURPWKHVH>SHRSOH@DQGWKHLUHYLOV·+H OHIW>.ËIDK@DQGZHP\VHOIDQG$EË0DVUËUu·VÀLEQ¼DP]DKOHIWZLWK KLP :H FDPH WR ¼ÈUDK DQG UHVLGHG WKHUH XQWLO =D\G ZDV NLOOHG DQG FUXFLILHG7KHQZHZHQWEDFNWR.ËIDKDVSHRSOHKDGFDOPHGGRZQ
,ELGS 7KH-RUGDQGLVWULFWZKHUH¼XPD\PDKLVORFDWHG $NKEÀUS ,ELGS
&+$37(521(
,EQu8PD\UWKHQLVPDGHWRUHVXPHIURPZKHUHZLWK \RXU RZQ H\HV@ =D\G·VHSLVRGHDQGZKDWKDSSHQHGWRKLP,QGHHGKHLVQRZFUXFLILHGLQ .XQÀVDK·
2IFRXUVHWKHUHLVQRLQWHQWLRQKHUHWRXQGHUPLQHWKHZKROHDFFRXQW,W LV WRR XQLTXH DQG SUHFLRXV IRU WKDW :H PXVW KRZHYHU WU\ WR XQZHDYH WKH VWUDQGV RI IDPLOLDU u$EEÀVLG DSRFDO\SWLFV DQG DSRORJHWLFV IURP WKH ILEUHV RI UHDOLW\ ,W LV VXSHUIOXRXV WR VD\ WKDW 0XDPPDG LEQ u$OÈ·V SUHGLFWLRQ RI =D\G·V UHYROW LV GLIILFXOW WR DFFHSW %XW HYHQ LI ZH ZHUH WR JUDQWWKDWVLQFH=D\G·VSUHSDUDWLRQVZHUHQRWDZHOOJXDUGHGVHFUHWWKH ,PÀP PLJKW KDYH NQRZQ DERXW LW WKHQ WKHUH ZRXOG EH QR UHDVRQ WR PDNH VXFK D ELJ WKLQJ RXW RI LW 0XOWLWXGHV RI RWKHUV NQHZ DERXW LW LQ IDFWWKHZKROH6KÈuLWHFRPPXQLW\RI.ËIDKGLGDVGLGZLWKRXWUHFRXUVH WR DQ\ VSHFLDO UHILQHG LQWHOOLJHQFH HIIRUW ,UDT·V JRYHUQRU WU\WR@H[DPLQHLWH[KDXVWLYHO\µVDLG,EQDOLTLTÀ:DV$EË 0XVOLPDVODYHDIUHHPDQDVHUYDQWDGLKTÀQDQ$UDED3HUVLDQ IURP ,¿IDKÀQ IURP .KXUÀVÀQ 6DOP LEQ u8WKPÀQ ,EUÀKÈP LEQ .KDWNÀQWKHGHVFHQGDQWRIWKHJUHDW3HUVLDQZD]ÈU%X]XUJPLKUWKH VRQ RI WKH GLVRZQHG LOOHJLWLPDWH 6DOÈ LEQ u$EG $OOÀK LEQ DOu$EEÀV D
,EQDO.6.6ÀS $NKEÀUSSDEDUÈ,,SS%DOÀGKXUÈ$QVÀEDO
$VKUÀI ,,, SS 'ÈQDZDUÈ SS ,EQ $uWKDP 9,,, S ,EQ u$EG 5DEELK ,9 S ,EQ DO$WKÈU ,9 SS 'KDKDEÈ 6L\DU 9, S ,EQ DO .6.6ÀS $NKEÀUSSDEDUÈ,,SS$]GÈS'ÈQDZDUÈSS ,EQ$uWKDP9,,,S,EQDO.6.6ÀS,EQDO$WKÈU,9S $NKEÀUSSDEDUÈ,,S%DOÀGKXUÈ $QVÀEDO$VKUÀI,,,SS$]GÈSDQ@LPDJHµDQGDV´WKH EHVWSRVVLEOHVORJDQIRUWKH5HYROXWLRQ«µEXWKHLVQRWDVFRUUHFWLQ KLV DWWHQGLQJ KLVWRULFDO DQDO\VLV :KDW WKH IXOO DVVXPHG QDPH $EË
$NKEÀUS 6XFK FKDUDFWHULVWLFV ZHUH WULYLDOL]HG E\ $EË0XVOLP LQDQRWKHUDFFRXQW KH VDLG
¶WR NQRZ DERXW P\ FRQGXFW LV PRUH EHQHILFLDO IRU \RX WKDQ NQRZLQJ DERXW P\ OLQHDJH .KDEDUÈ.KD\UODNDPLQQDVDEÈ ·DEDUÈ,,S%DOÀGKXUÈ$QVÀEDO$VKUÀI,,,S $NKEÀUSLQDQRWKHUYDULDWLRQRIWKHVDPHDFFRXQW 6KDEDQu$EEÀVLG5HYROXWLRQS
$%½086/,0$/.+85¯¯· 0XVOLP u$EG DO5DPÀQ LEQ 0XVOLP DO.KXUÀVÀQÈ &(9:&11> &3) EULOOLDQWO\GHSLFWHGZDVDWRQFHWKHHJDOLWDULDQ5HYROXWLRQDU\LGHDOEXW DOVRWKHFKDUDFWHULVWLFSURILOHRIWKH,UDQLDQFRQYHUWSDUH[FHOOHQFH³EHKH IURP 0ÀNKXZÀQ ,¿IDKÀQ RU UXUDO .ËIDK IUHH PDQXPLWWHG RU VODYH ¶6RPHRQH· LEQ u8WKPÀQ LEQ 4:3,*7'749-*7DO6DIIÀDQGWKHDFFHVVLRQRIDGLIIHUHQWW\SH RI PDQ %XW WKHVH RFFXUUHQFHV HYHQWIXO DV WKH\ ZHUH ZHUH PHUH KLVWRULFDO DFFLGHQWV 0RUH LPSRUWDQW WKDQ ZKDW $EË :81.2 FRXOG QRW SRVVLEO\ KDYH IRUHVHHQ LV ZKDW KH PLVFDOFXODWHG³WKH LUUHYHUVLELOLW\ RI WKH G\QDPLFV RI V\PEROLVP OHJLWLPDF\ DQG SRZHU RQFH WKH\ KDYH LQWHUDFWHG SRVLWLYHO\ IRU DQ DGHTXDWH SHULRG RI WLPH LQ IDYRUDEOH FRQGLWLRQV,WDSSHDUV WKDW$EË:81.2 ).)349&557*(.&9*9-*+&(9WKDW WKHKDUGHUKHIRXJKWRQEHKDOIRIu$EEÀVLGOHJLWLPDF\WKHOHVVGHSHQGDQW RQKLVJRRGZLOOWKHu ''À8.)OHJLWLPDF\ZRXOGEHFRPHWKDWLWZRXOG³
&+$37(57+5(( DV LW DFWXDOO\ GLG³DFTXLUH D OLIH RI LWV RZQ DQG WKDW RQFH KH FKDPSLRQHGLWSXEOLFO\KHZRXOGQRWEHDEOHWRFRXQWHULW :KLOHVWLOOZRUNLQJZLWKSODXVLELOLWLHVZHPLJKWDVZHOOUHFRJQL]HWKDW WKHIRUPDWLYH IHDWXUHVRI DQRSHQLQJDFW PD\EH VRXJKW LQWKHFRQWRXUV RI WKH FORVLQJ DFW$QGZKLOH 'KDKDEÈ .8349 & 57.2&7> 84:7(* '*(7.9.(4+9-*u ''À8.)7.&-3 -.8 H[SRVLWLRQ RI RQH RI WKH ILQDO DFWV RI WKH u$EEÀVLG$EË 0XVOLP GUDPD 'KDKDEÈ 1&>8 '&7* 9-* *88*3(* 4+ 9-* 57*8:2*) )*&1 &3) 9-* 58>(-414,.(&1)>3&2.(8,4;*73.3,.9:KHQWKHQDVW\H[FKDQJHEHWZHHQ WKHPHVFDODWHG$EË0XVOLPZURWHWRDO0DQ¿ËU ,Q >FKRRVLQJ@ \RXU >OLQH RI WKH IDPLO\@ , KDG EHHQ >RYHU@ LQWHUSUHWDWLYH >RIWKHLGHRORJ\@DQG,KDGHUUHGLQQÈNXQWXIÈNXPPXWDrDZZLODQIDDNKDrW
7KLV LV DQ DGPLVVLRQ E\ 'Ë :81.2 9-&9 KH SHUVRQDOO\ KDG EHHQ UHVSRQVLEOH IRU WKH u$EEÀVLG RSWLRQ :KHQ WKH QRRVH WLJKWHQHG DURXQG KLVSRVLWLRQKHFRQVXOWHGRQHRIKLVWUXVWHGPHQ$EË,VÀTDO0DUZD]È ZKRDQDO\]HGWKHVLWXDWLRQIRUKLPDVIROORZV 7KLVPDQ>DO0DQ¿ËU@KDUERUVROGJUXGJHVDJDLQVW\RX6LQFH>RSSRVLQJ KLP@ KDG EHHQ \RXU FKRLFH WKHQ >ZKHQ \RX DQWDJRQL]HG KLP@ KDG \RX WKHQ WDNHQDVDQ DOO\ DPDQIURPu$OÈ·VIDPLO\LWZRXOG>WKHUHIRUH@KDYH EHHQ FORVHU >WR GRLQJ WKH ULJKW WKLQJ@ >RU@ KDG \RX DFFHSWHG KLV DSSRLQWPHQW RI \RX WR .KXUÀVÀQ 6\ULD DQG WKH ¿ÀrLIDK VXPPHU FDPSDLJQ \RXZRXOGKDYHKDGPRUHWLPHDQG\RXZRXOGKDYHEHHQDW OLEHUW\ >WR PDQHXYHU@ \RX ZRXOG KDYH GLVSDWFKHG >HPLVVDULHV@ WR 0DG ÈQDKDQGOXUHG>RUVSLULWHG@DQu$OÈGDQGLQVWDOOHGKLPDV,PÀPIDZDMMDKWD LOÀDO0DGÈQDWLIDLNKWDODVWDu$ODZL\\DQID3&¿¿&'9&-:LPÀPDQ \RXZRXOGKDYH ZRQWKHKHDUWVRIWKHSHRSOHVRI.KXUÀVÀQDQG,UDTDQG\RXZRXOGKDYH KXUOHGDW$EË-DuIDUDQ HTXDORIKLVWRPDWFKKLPWKHQ\RXZRXOGKDYH EHHQRQDMXGLFLRXVFRXUVH>%XWQRZ@GR\RX>UHDOO\@ZDQWWRILJKW$EË -DuIDUZKHQ\RXDUHLQ¼XOZÀQKLVVROGLHUVDUHLQ0DGÀrLQDQGKHLVDQ XQGLVSXWHGFDOLSK",WLVQRW>DVYLDEOH@DV\RXWKRXJKW
,Q HIIHFW $EË 8À6 ZDV UHWUDFLQJ KLVWRU\ SRLQWLQJ RXW WR $EË 0XVOLP WKDW KH RXJKW WR KDYH GRQH ZKDW KH KDG GRQH HDUOLHU ZKHQ KH FKRVH WKH ZHDNHU SDUW\ RQO\ WKDW WKLV WLPH DURXQG KH RXJKW WR KDYH H[FKDQJHGWKHu$EEÀVLGIRUDQu$OÈG ,9¶+LMDFNLQJ·WKH.KXUÀVÀQ&KDSWHU ,W LV RQO\ IRU PHWKRGRORJLFDO UHDVRQV WKDW WKH FKDUDFWHUL]DWLRQ RI WKH IRUHJRLQJ VFHQDULR LV QRW XSJUDGHG IURP SODXVLELOLW\ WR YHUDFLW\ )RU DOO
'KDKDEÈ6L\DU9,SS ,ELGS
$%½086/,0$/.+85¯¯· RWKHU SXUSRVHV WKLV VFHQDULR LV FRPSDWLEOH ZLWK WKH XQIROGLQJ RI WKH VXEVHTXHQW HYHQWV ZKLFK ZH VKDOO WU\ WR H[WUDFW IURP WKH GRFWRUHG u ''À8.)7.&- 7KHWZRPHQOHIW0DNNDKFDUU\LQJWKHLUVHFUHW,EUÀKÈPZHQWEDFNWR ¼XPD\PDKWRVLWDQGZDLWLQKRSH$EË0XVOLPZHQWEDFNWR.ËIDKWR UHVXPH KLV GRXEOH PLVVLRQ RVWHQVLEO\ DV $EË 6DODPDK·V PHVVHQJHU WR .KXUÀVÀQ DQG DFWXDOO\ DVWKHOHDGHULQZDLWLQJ FXOWLYDWLQJ DQG UHDULQJ KLVSRZHUUHODWLRQVDQGFDOPO\PRELOL]LQJKLVJUDVVURRWVFRQVWLWXHQFLHV $EË 6DODPDK VHWWOHG IRU D VW\OH RI PDQDJHPHQW E\ FRUUHVSRQGHQFH UHPLQLVFHQW RI %XND\U·V PDQDJHPHQW WKURXJK UHVLGHQW HQYR\V DQG LURQLFDOO\ KH ZRXOG VRRQ UHDS DOPRVW WKH VDPH ELWWHU IUXLWV ,W LV QRW NQRZQ KRZ PDQ\ WULSV $EË 0XVOLP PDGH WR .KXUÀ8À3 EHWZHHQ FD 6KDuEÀQ 0D\-XQH ZKHQ $EË 6DODPDK KDG FRQFOXGHG KLV ODVW WULS DQG HDUO\ $XWXPQ ZKHQ $EË 0XVOLP VWD\HG RQ IRU WKHOLJKWQLQJGRXEOHEORZKHZDVVRRQWRDGPLQLVWHURQERWKIURQWVWKH LQWHUQDO DQG WKH H[WHUQDO EHFRPLQJ ILUVW WKH OHDGHU RI WKH .KXUÀ8À3 -&59*7&3)9-*39-*2&89*74+9-*&89 +RZ GLG $EË 0XVOLP EHFRPH OHDGHU RI WKH .KXUÀVÀQ &KDSWHU" ,QHYLWDEO\ DV WKH u$EEÀVLG ULZÀ\DK ZRXOG KDYH LW ,EUÀKÈP VLPSO\ DSSRLQWHG KLP 7KH LPSRVLWLRQ RI WKH ,PÀP·V UROH ZLWK WKH DWWHQGLQJ LPSHUDWLYHV RI REHGLHQFH WR KLP DQG KDUPRQ\ ZLWK KLV GHVLJQV ZUHDN KDYRF RQ DQ RWKHUZLVH FRKHUHQW KXPDQO\ DQG KLVWRULFDOO\ XQGHUVWDQGDEOHVWUHDPRIHYHQWV)RUIURPWKLVSRLQWRQWKHUHLVVFDUFH DJUHHPHQWRQDQ\GHWDLO $FFRUGLQJ WR VRPH DFFRXQWV ,EUÀKÈP RIIHUHG WKH SRVLWLRQ WR 6XOD\PÀQLEQ.DWKÈU ZKRGHFOLQHGWKHQWR4DDEDKRU,EUÀKÈPLEQ 6DODPDK ZKR LQ WXUQ GHFOLQHG 7KHQ KH FKRVH $EË 0XVOLP RU KH VXJJHVWHG KLV QDPH DQG 4DDEDK DQG 6XOD\PÀQ ZDUPO\ HQGRUVHG KLP %XW ZK\ ZDV D QHZ DSSRLQWPHQW UHTXLUHG" %HFDXVH ZKHQ WKH FLYLO VWULIH VWDUWHG LQ WKH SURYLQFH 6XOD\PÀQ ZURWH WR $EË 6DODPDK UHTXHVWLQJKLPWRZULWHWR,EUÀKÈPWRXUJHKLPWRVHQGDPHPEHURIKLV RZQIDPLO\WRKHDGWKH&KDSWHURUEHFDXVHVRPHRIWKHQXTDEÀrFDPH WR ,EUÀKÈP LQ SHUVRQ DVNLQJ KLP WR VHQG WKHP D OHDGHU RU ,EUÀKÈP
2Q WKLV SRLQW WKH VRXUFHV DUH XQDQLPRXV H[FHSW WKDW IURPWKH,PÀ2@DQGKDGKLPUHDGZKDWKDGEHHQZULWWHQ WRKLP3DUWRIZKDWKDGEHHQZULWWHQWRKLPZDV¶,I6XOD\PÀQLEQ.DWKÈ U DFFHSWV WR WDNH RQ WKH >UHVSRQVLELOLW\ RI OHDGLQJ@ WKH GDuZDK DQG LI KH QRPLQDWHVKLPVHOIIRUWKHWDVNVXEPLWWRKLP,IKHGHFOLQHVWRWDNHRQWKH UHVSRQVLELOLW\ GR QRW >QRQHWKHOHVV@ GLVREH\ >DQ\ RI@ 6XOD\PÀQ·V FRPPDQGVDQGJLYHKLPSULRULW\LQDOO\RXUDUUDQJHPHQWV·
,I VR ZKDW ZDV WKH GLVSXWH DERXW" $FWXDOO\ E\ VXEVWUDFWLQJ WKH ,PÀ2·8 DOOHJHGUROHWKHHOHPHQWVRIWUXWKHPHUJHLQUHDVRQDEOHKDUPRQ\IURP WZR HVVHQWLDOO\ VLPLODU DFFRXQWV LQ $NKEÀU DQG DEDUÈ WKHLU ZLGH GLYHUJHQFHRQPDQ\SDUWLFXODUGHWDLOVQRWZLWKVWDQGLQJ
$NKEÀU S DEDUÈ ,, S%DOÀGKXUÈ $QVÀEDO$VKUÀI ,,, S $]GÈS
$NKEÀU S DEDUÈ ,, SS %DOÀGKXUÈ $QVÀE DO$VKUÀI ,,, S $]GÈS $NKEÀUSDEDUÈ,,S$]GÈS %DOÀGKXUÈ$QVÀEDO$VKUÀI,,,S $]GÈS DEDUÈ,,SS $NKEÀUS %DOÀGKXUÈ$QVÀEDO$VKUÀI,,,SS $NKEÀUS %DOÀGKXUÈ$QVÀEDO$VKUÀI,,,SS DEDUÈ,,SSFIS $NKEÀU SS )RU RWKHU DEXVHV DWWULEXWHG WR 6XOD\PÀQ DQG WR KLV VRQ 0XDPPDGVHH%DOÀGKXUÈ$QVÀEDO$VKUÀI,,,S $NKEÀUSDEDUÈ,,SS $NKEÀUS ,ELGSSDEDUÈ,,SII
$%½086/,0$/.+85¯¯·
:KHQKHIHOWUHDG\$EË0XVOLPVLPSO\VWD\HGLQWKHSURYLQFHQHYHU WR VHH $EË 6DODPDK DJDLQ :LWKLQWKH.KXUÀVÀQ&KDSWHU KHGHOLYHUHG KLV EORZ TXLFNO\ DQG DOPRVW VXUJLFDOO\ 7KH FODQGHVWLQH QDWXUH RI WKH PRYHPHQW GLG QRW DOORZ IRU D OHQJWK\ DQG PHVV\ VWUXJJOH ZKLFK ZRXOG KDYH DOHUWHG WKH DXWKRULWLHV ,Q DGGLWLRQ WR KLV FRPPDQGLQJ SRVWXUH RQ WKH JUDVVURRWV OHYHO LQ WKH UHPRWH GLVWULFWV $EË :81.2 KDG FDUHIXOO\ FXOWLYDWHG VRPH YHU\ HIIHFWLYH DOOLDQFHV LQ WKH YLOODJHV RI 0DUZ DQG RQ WKHGLIIHUHQWOHYHOVRIWKH2UJDQL]DWLRQOHDGHUVKLSLQFOXGLQJWKHQXTDEÀr 6XOD\PÀQLEQ.DWKÈUWKHVHQLRUQDTÈEZDVYLUWXDOO\LVRODWHGDIWHUDEULHI IODUHRIWHPSHUKHKDGQRFKRLFHEXWWRIDOOLQOLQH$IWHUKHZRQ$EË 0XVOLPHYHUWKHPDVWHUVWUDWHJLVWDQGWDFWLFLDQDSSHDVHG6XOD\PÀQE\ GHIHUULQJWRKLPDQGDFFRUGLQJKLPWKHKRQRUVKHH[SHFWHG³DOEHLWRQO\ WHPSRUDULO\7KH\DJUHHGWRSXWDGLJQLILHGIDFHRQWKHFRXSE\KDYLQJ 6XOD\PÀQ KLPVHOI ZULWH WR WKH SDUWLVDQV LQ WKH GLVWULFWV LQIRUPLQJ WKHP RIKLVGHFLVLRQWR\LHOGWKHOHDGHUVKLSWR$EË0XVOLP 97KH5HYROXWLRQ 1RZ LQ ILUP FRQWURO RI WKH .KXUÀ8À3 -&59*7 'Ë :81.2 3&2.(8 4+ 9-* 545:1&7 :57.8.3, -* -&) '**3 ,7442.3,+4784143,3&'&7È·8DOORYHU@.KXUÀ8À3DQGSHRSOHMRLQHGLQWKURQJVDQG JUHZQXPHURXVDQGWKHGXuÀWSHUPHDWHGDOORI.KXUÀVÀQZDVDPLuDWDOVKÈu DWX PLQD DOQXTÀEÀr. ZD JKD\ULKLP OL$EÈ 0XVOLPLQ ZD &ÀuË- « ZD EDWKWKD DO GXuÀWD IÈ &6À7. .KXUÀVÀQD IDGDNKDOD DOQÀVX DIZÀMDQ ZD NDWKXUË ZD IDVKDWL DO GXuÀWXIÈ.KXUÀVÀQDNXOOLKÀ
7KLV WH[W SUREDEO\ QRW XQLQWHQWLRQDOO\ LV UHPLQLVFHQW RI WKH 4XUDQLF YHUVH PDUNLQJ WKH PDVVLYH VSUHDG RI ,VODP DPRQJVW WKH $UDEV ´ZD UDrD\WDDOQÀVD\DGNKXOËQDIÈGÈQL$OOÀKLDIZÀMDQµ2QHGLGQRWUHDOO\KDYHWR UHO\ VROHO\ RQ 'ÈQDZDUÈ·V FRQIXVHG DFFRXQW RU WR ZDLW IRU WKH GLVFRYHU\ RI$NKEÀU·VPDQXVFULSWWRUHDOL]HWKHXQPLVWDNDEOHFKDUDFWHURIWKHPDVV 5HYROXWLRQ
$NKEÀU S 7KLV LV KRZ ZH FRQVWUXH WKH VWUDQJH SDVVDJH ZKLFK LPPHGLDWHO\ IROORZV WKH ,PÀP·V DOOHJHG OHWWHU $NKEÀU S DV D IDFHVDYLQJ FRPSURPLVH E\ ZKLFK $EË0XVOLPJUDFLRXVO\DSSHDVHG6XOD\PÀQDQGZKLFKFODLPHGWKDW6XOD\PÀQKDGWKH RSWLRQEXWGHFOLQHG DEDUÈ,,S 'ÈQDZDUÈ·V GHSLFWLRQ RI D PDVV PRYHPHQW SS *LEE GLVPLVVHV 'ÈQDZDUÈ·V DFFRXQW DQG LJQRUHV DEDUÈ·V DVVHUWLQJ WKDW ¶,Q RXU PRVW DXWKHQWLF UHFRUGV WKHUH LV QR WUDFH RI D PDVV PRYHPHQW· &RQTXHVWV S 6KDEDQ UHVWULFWV WKH PRYHPHQW WR 0DUZ $EEÀVLG 5HYROXWLRQ S 'DQLHO GRHV UHFRJQL]H WKH PDVVPRYHPHQWEXWKHH[FOXGHV7UDQVR[DQLDNKXUDVDQSS
&+$37(57+5(( 7KH GHWDLOHG VWRU\ RI WKH RSHQ 5HYROXWLRQ DQG LWV LPPHGLDWH SUHOLPLQDULHVIURPWKHWLPH$EË0XVOLPDUULYHGLQWKHSURYLQFHWRVWD\ KDVEHHQPDVWHUIXOO\WROGE\:HOOKDXVHQ/DWHU06KDURQUHFRXQWHG WKH VWRU\ LQ H[WHQVLYH GHWDLO :HOOKDXVHQ V\QWKHVL]HG KLV QDUUDWLYH IURP DQDO\]LQJ DEDUÈ·V WKUHH DFFRXQWV DQG UHFRQVWUXFWLQJ WKH HOHPHQWV RI D YLDEOH VFHQDULR 2I FRXUVH $NKEÀU ZDV QRW DYDLODEOH WR :HOOKDXVHQ 6KDURQ FRUUHFWO\ UHDOL]HV WKDW ´WKH WUDGLWLRQ LQ $NKEÀU UHODWLQJ WR $EË 0XVOLP·V WULEDO SROLF\ LV PRUH FRPSOHWH DQG PRUH JHQXLQHWKDQWKHDFFRXQWVRIDEDUÈ $]GÈDQG'ÈQDZDUȵ+RZHYHU WKH QDWXUH RI WKHVH VRXUFHV FRPSOLPHQWDU\ LQ PDQ\ UHVSHFWV LPSRVHV LWVHOI RQ 6KDURQ DOEHLW LQ D VHOHFWLYH PDQQHU KH WKHUHIRUH WULHV ´WR UHFRQVWUXFW WKH FRPSOHWH SLFWXUH IURP WKH WUDGLWLRQV RI DEDUÈ DQG WKH $NKEÀUµ $FWXDOO\ HYHQ WKRXJK ´$NKEÀ7 574;.)*8 & :3034 &19*7 (4397&89 ´KRXVHG WKH 8PD\\DG $UDE SURYLQFLDO JRYHUQPHQW QRPLQDOO\ KHDGLQJ WKH PDLQ EXON RI WKH RQFH IRUPLGDEOH $UDE DUP\ EXW DFWXDOO\ SDUDO\]HG E\ WKH WULEDO VWDQGRII WKDW VSOLW LWV UDQNVµ $OO $EË 0XVOLP QHHGHG ZDV DQ LPSRVLQJ SUHVHQFH LQ 0DUZ ZKLFK WKURXJK SROLWLFDO PDQHXYHULQJ ZRXOG KHOS KLP SHUSHWXDWH WKH ¶GHDGORFN DW 0DUZ· DQG
:HOOKDXVHQS $NKEÀUSDEDUÈ·VDQRQ\PRXVVRXUFH,,S0DGÀrLQÈGDWHVWKHHYHQWWR
5DEÈu,,RUZKLOH$EËDO-&À'GHOD\VLWWZRIXOOPRQWKVWR-XPÀGÀ,,DEÀUÈ ,,SS %DOÀGKXUÈDGYDQFHVLWWR5DEÈu,$QVÀEDO$VKUÀI,,,S 7KHUH ZHUH WKUHH PDLQ ZDUULQJ $UDE SDUWLHV WKH OR\DO WULEHV PDLQO\ 0XÉDULWH ZLWK WKH JRYHUQRU 1D¿U LEQ D\\ÀU WKH DQWL0XÉDUEXWQRWDQWL(VWDEOLVKPHQW RSSRVLWLRQSDUW\RIWKH$]GÈOHGE\WKHWZRVRQVRIDO.LUPÀQÈu$OÈDQGu8WKPÀQDQG WKH .KDZÀULM OHG E\ 6KD\EÀQ LEQ 6DODPDK DQG DOOLHG WR D 5DEÈuDK IDFWLRQ IURP WKH %DQ˼DQÈIDKXQGHUu$OÈLEQ0DuTLODO¼DQDIÈ
&+$37(57+5(( DOORZKLVPLOLWLDVLQWKHRXWO\LQJGLVWULFWVWRRYHUSRZHUWKHWKLQO\VSUHDG SROLFHOLNH$UDEIRUFHV :HOOKDXVHQ GRHV UHDOL]H WKDW D PDVV ULVLQJ RFFXUUHG DOWKRXJK KH UHVWULFWV LW WR .KXUÀVÀQ SURSHU WKXV H[FOXGLQJ 7UDQVR[DQLD DQG PXFK RIXNKÀULVWÀQ+LVFRQFHQWUDWLRQRQWKHHYHQWVLQ0DUZDQGWKHIDFW WKDW $NKEÀU ZDV QRW NQRZQ WR KLP KDG D GLOXWLQJ HIIHFW RQ KLV XQGHUVWDQGLQJ RI WKH VLJQLILFDQFH DQG H[WHQW RI WKH JHRJUDSKLFDO RUFKHVWUDWLRQ $OWKRXJK KH PHQWLRQV WKH IDFW WKDW $EÈZDUG 0DUZ DO 5ËGKDQG+DUÀWKDGEHHQZRQEHIRUH0DUZKHJLYHVLWQRPRUHWKDQ RQH VHQWHQFH 0RVW RWKHU PRGHUQ VFKRODUV VKDUH :HOOKDXVHQ·V IRFXV RQ WKH HYHQWV LQ WKH RDVLV VLPSO\ EHFDXVH PRUH LQIRUPDWLRQ DERXW WKH RDVLV LV DYDLODEOH LQ WKH VRXUFHV ´7KLV SROLWLFDOO\ SURSRUWLRQDWH EXW GHPRJUDSKLFDOO\ DQG VWUDWHJLFDOO\ GLVSURSRUWLRQDWH IRFXV« >UHVXOWHG ZLWK WKH IDFWWKDW@ WKH JUHDW VLJQLILFDQFH RI WKH VWUDWHJ\ RI RUFKHVWUDWLRQ DV FUXFLDO HYLGHQFH RI D PDVV ,UDQLDQ XSULVLQJ ZDV HLWKHU GLOXWHG RU FRPSOHWHO\ ORVWµ $ IHZ H[WUDFWV IURP P\ DUWLFOH RQ $EË 0XVOLP·V FRQTXHVWRI.KXUÀVÀQPD\IXUWKHUFODULI\WKLVPDWWHU 7KH VWDUN FRQWUDVW ERWK RI FKURQRORJ\ DQG PDQQHU LQ ZKLFK WKH UHYROXWLRQPDGHLWVVZHHSLQJWHUULWRULDOJDLQVLQWKHRXWO\LQJGLVWULFWVILUVW DQG LQ 0DUZ ODVW FRQYH\V WKH HVVHQFH RI $EË 0XVOLP·V VWUDWHJ\ DQG WDFWLFV :KHQ WKLV VWUDWHJ\ VWDUWHG \LHOGLQJ LWVTXLFN DQGVXFFHVVLYH JDLQV 1D¿U E 6D\\ÀU ZDV VWLOO LQ 0DUZ KROGLQJ KLV RZQ EXW FRPSOHWHO\ SDUDO\]HG E\ KLV LQDELOLW\ WR VWRS WKH WULEDO ZDU WKDQNV LQ JRRG SDUW WR WKLV YHU\ VWUDWHJ\ :LWKLQ D IHZ PRQWKV RI ILUVW HUXSWLRQ WKH HQWLUH WHUULWRU\QRUWKHDVWDQGVRXWKRI0DUZDQGWKHWHUULWRU\LPPHGLDWHO\WR WKH ZHVW RI WKH RDVLV ZDV VZHSW FOHDQ OHDYLQJ RQO\ D VRXWKZHVWHUO\ FRUULGRU²WKHRQHWKDW1D¿UE6D\\ÀUZRXOGVRRQXVHLQKLVIOLJKWYLDWKH 6DUDNKVKLJKZD\WRËV1ÈVKÀSËUXSWRWKH6ÀWKH8PD\\DGV@LQWKHFLWLHVRI.KXUÀVÀQDQG0ÀZDUÀrDOQDKUµ 6KDURQDVVLJQVWKHWHUULWRU\ WRDUHDVZKLFKVWLOO KDGWREHVXEMXJDWHG DIWHU $EË 0XVOLP KDG JDLQHG FRQWURO ´RI WKH WHUULWRU\ RI .KXUÀVÀQ WR WKHHDVWRIWKHOLQH0DUZ0DUZDU5ËG+HUÀW«$EË'ÀZËGZDVVHQW WR WU\ KLV OXFN LQ VXEMXJDWLQJ 7UDQVR[DQLDµ ZKLFK PHDQV WKDW LW KDG QRWEHHQVXEMXJDWHG\HW$FWXDOO\WKHVRXUFHVWRZKLFK6KDURQUHIHUVLQ RUGHUWRVXSSRUWKLVVWDWHPHQWGRQRWVD\ZKDWKHVD\VWKH\VD\ 'HVSLWH KLV HDUOLHU DQG VWURQJO\ IRXQGHG UHFRJQLWLRQ RI WKH JHRJUDSKLFDOO\ ZLGHVSUHDG VXSSRUW IRU WKH 5HYROXWLRQ 'DQLHO H[FOXGHV7UDQVR[DQLD IURPWKHUHYROXWLRQDU\ FRDOLWLRQ 2QWKHVWUHQJWK RI ¶FRPPRQ LQWHUHVW· DQG ¶JHQXLQH IULHQGVKLS· KH GHFODUHV LW SUR 8PD\\DG7KHDOOLDQFHEHWZHHQWKH8PD\\DG(VWDEOLVKPHQWDQGWKH
%DUWKROG7XUNHVWDQS ,QIUDFKDSWHUVL[ *LEE&RQTXHVWVSS 2PDUu$EEÀVLG&DOLSKDWHSOLNH6KDURQDQG6KDEDQKHLVDEVRUEHGZLWKWKH
HYHQWVLQ0DUZSS ,ELGS 6KDURQ5HYROWS %DOÀGKXUÈ RQO\ UHODWHV KRZ $EË 'ÀZËG GHFHLYHG u8WKPÀQ LEQ DO.LUPÀQÈ LQWR FURVVLQJ WKH 5LYHU SURPLVLQJ KLP WKH JRYHUQRUVKLS RI 7UDQVR[DQLD WKHQ KH NLOOHG KLP $QVÀEDO$VKUÀI,,,S DEDUÈDQG'È3DZDUÈVWDWHWKHNQRZQIDFWWKDW$EË'À7*&) &''Àu@LEQDO1XuPÀQuDOÀ6DPDUTDQGZDZDOOÀ.KÀOLGLEQ ,EUÀKÈP uDOÀ XNKÀULVWÀQ· 6DEEÀuQR DOVRNLOOHGODWHUE\$EË0XVOLPKDGEHHQRQH RIWKHYHU\IHZ2UJDQL]DWLRQPHPEHUVHPEURLOHGLQWKHWULEDOVWULIHRQWKH.LUPÀQÈVLGH ,WLVQRWVWUDQJHWKDWKHZDVVHQWWR6DPDUTDQGZLWKLQWKHFRQWH[WRI$EË0XVOLP·VZLGH PDQHXYHUV WR VFDWWHU WKH .LUPÀQÈ PHQ DOO RYHU WKH SURYLQFH )XUWKHUPRUH 6DPDUTDQG PXVW KDYH EHHQ TXLHW DQG GLG QRW UHTXLUH D WRS OLHXWHQDQW $EË 'ÀZËG ZDV XNKÀULVWÀQ·VPDQPRUHRYHUWKHUHZDVWURXEOHWKHUHWKDWFDOOHGIRUKLVH[SHUWLVH7KLV LVDGLIIHUHQWEXWUHODWHGVWRU\WKDWZLOOSUHVHQWO\EHLQYHVWLJDWHG 'DQLHO.KXUDVDQSS +HVD\V¶2IDOOWKH,UDQLDQSURYLQFHVLWLVXQOLNHO\WKDWDQ\ZDVPRUHRSHQO\DQG DFWLYHO\SUR8PD\\DGWKDQ7UDQVR[DQLD,WZRXOGEHDPLVWDNHWREHOLHYHWKDW8PD\\DG
$%½086/,0$/.+85¯¯· ¶QDWLYHDULVWRFUDF\RI7UDQVR[DQLD·DVZHOODVRIRWKHU3HUVLDQWHUULWRULHV LV D PDWWHU RI XQGLVSXWHG KLVWRULFDO UHFRUG DOWKRXJK LW FDQQRW EH DVVHUWHG WKDW LW KDG DOZD\V EHHQ D VWDEOH DOOLDQFH 6R DUH WKH SHUVRQDO ¶JHQXLQH IULHQGVKLSV· ZKLFK 4XWD\EDK $VDG LEQ u$EG $OOÀK DQG 1D¿U FXOWLYDWHG %XW WKLV GRHV QRW EHDU HYLGHQFH WR FRUURERUDWH WKH WKHRU\ 'DQLHO DGYDQFHV 7KH DOOLDQFH EHWZHHQ DQ\ QDWLYH DULVWRFUDF\ DQG D IRUHLJQ UXOLQJ HVWDEOLVKPHQW KDV DOZD\V EHHQ D SUHFDULRXV ¶LQVWLWXWLRQ· EXWLWQHYHUSUHYHQWHGWKHPDVVHVRIDQ\VRFLHW\IURPULVLQJLQUHYROW,W GLGQRWLQ.KXUÀVÀQSURSHUQRULQPRVWRIXNKÀULVWÀQVRZK\VKRXOG LWKDYHLQ7UDQVR[DQLD"7KHDUHDV'DQLHOWULHVWRH[FOXGHIURPWKH¶WUXH PDVV XSULVLQJ· IRU ZKLFK KH YRXFKHV KH KLPVHOI LQFOXGHV D PHUH WKLUW\ILYHSDJHVHDUOLHU 'DQLHOIXUWKHUUHVWVKLVDUJXPHQWRQDEDUÈ·VDFFRXQWRIWKHILJKWLQJ QHDU %DONK ZKLFK 'DQLHO GDWHV WR DQG RQ WKH UHYROW RI 6KDUÈN LEQ 6KD\NK DO0DKUÈ QR LQ %XNKÀUÀ LQ DQG RQ WKH VXEVHTXHQW WXUEXOHQFHV +H WULHV WR LOOXVWUDWH WZR SRLQWV )LUVW ´WKH JUHDWHVW GLIILFXOW\ >ZLWK ZKLFK@ WKH $EEDVLGV DVVHUWHG FRQWURO RYHU WKHVH IURQWLHU DUHDVµ DQG VHFRQG ´WKH LQWHQVLI\LQJ GLVVDWLVIDFWLRQ ZLWK $EEDVLG UXOHµ +H GRHV QRW H[DPLQH WKH LPSOLFDWLRQV RI WKH IDFW WKDW WKH SHULRG LQWHUYHQLQJ EHWZHHQ 6KDUÈN·V UHYROW DQG WKH 5HYROXWLRQ ZDV DSSDUHQWO\SHDFHIXODQGXQHYHQWIXO 2FFXUULQJDURXQGIRXU\HDUVDIWHUWKH5HYROXWLRQKDGVFRUHGLWVILUVW WULXPSKV LQ WKH (DVW 6KDUÈN·V UHYROW GRHV QRW QHFHVVDULO\ EHDU DQ\ LQGLFDWLRQV UHJDUGLQJ WKH JHRSROLWLFDO VLWXDWLRQ DQG WKH GHPRJUDSKLF FRPSRVLWLRQ RI WKH DQWDJRQLVWLFIRUFHV DW WKH WLPH WKH 5HYROXWLRQ EURNH RXW ,I DQ\WKLQJ LW EHDUV ZLWQHVV WR WKH QDWXUDO SRVWYLFWRU\ GLVLQWHJUDWLRQ WKDW SODJXHV DQ\ UHYROXWLRQV ZKRVH PDLQVWD\ LV DQ H[WUHPHO\ FRPSOH[ DQG H[WHQGHG FRDOLWLRQ 7KH IDFW WKDW FHUWDLQ IRUFHV LQ %XNKÀUÀ RU HYHQ WKH HQWLUH %XNKÀUÀ SRSXODWLRQ UHYROWHG LQ
VWUHQJWK WKHUH ZDV GHULYHG VROHO\ IURP WKH PDQ\ WURRSV WKH\ KDG WKHUH 8PD\\DG VXSSRUW ZHQW PXFK GHHSHU WKDQ WKDW 7KH 8PD\\DG OHDGHUVKLS DQG WKH QDWLYH DULVWRFUDF\ RI 7UDQVR[DQLD WKH 6\ULDQ PXTÀWLODK DQG WKH ,UDQLDQ PDUFK ORUGV DQG ZDUULRUVKDGDFRPPRQLQWHUHVWLQUHVLVWLQJ7XUNLVKHQFURDFKPHQWV7KLVFRLQFLGHQFH RILQWHUHVWZDVFHPHQWHGE\PDQ\JHQXLQHIULHQGVKLSV7KXVPDQ\RIWKH,UDQLDQVZKR IRXJKW WKH u$EEÀVLG IRUFHV LQ .KXUÀVÀQ FDPH IURP WKH SULQFLSDOLWLHV RI 7UDQVR[DQLD ,W ZDV RQO\ ZLWK WKH JUHDWHVW GLIILFXOW\ WKDW WKH u$EEÀVLGV DVVHUWHG FRQWURO RYHU WKHVH IURQWLHUDUHDV·,ELGSVHHDOVRS ,ELGS ,Q UHIXWLQJ 6KDEDQ·V WKHRU\ WKDW 0DUZ ZDV ¶WKH VRXUFH RI WKH UHYROW· DQG LQ FRQVROLGDWLQJ KLV RZQ WKDW LW ZDV ¶RQO\ LWV IRFDO SRLQW· 'DQLHO OLVWV DFFRUGLQJ WR 'ÈQDZDUÈ DEDUÈ $NKEÀUDQG$]GÈ DPRQJWKH DUHDV ZKLFK URVH LQ UHYROW¶« 6RJKGLD « .KXWWDOÀQ .LVK DQG 1DVDI .KZÀUL]P « %XNKÀUÀ· 'DQLHO .KXUDVDQ S DQGQRWHV ,ELGSSII
&+$37(57+5(( DJDLQVWWKH5HYROXWLRQDU\JRYHUQPHQWGRHVQRWPHDQWKDW HLWKHU7UDQVR[DQLDDVDZKROHRUHYHQ%XNKÀUÀLQSDUWLFXODUZDVDQWL 5HYROXWLRQDU\ LQ 7KH SURu$OÈG FKDUDFWHU RI 6KDUÈN·V UHYROW LV SURRI HQRXJK WKDW LW PD\ KDYH EHHQ D YLROHQW H[SUHVVLRQ RI WKH GLVDSSRLQWPHQW RI RQH RI WKH ZLQJV RI WKH FRDOLWLRQ IRU ZKRP WKH FKRVHQ u$EEÀVLG ZDVQRWD ULÉÀ ,QIDFW6KDUÈN·V VWDWHPHQW´7KLVLV QRW WKHEDVLVRQZKLFK ZHVXSSRUWHG>RUVZRUHDOOHJLDQFHWR@0XDPPDG·V +RXVH PÀ uDOÀ KÀGKÀ LWWLEDuQÀ >RU EÀ\DuQÀ@ ¯OD 0XDPPDG µ VWURQJO\ LQGLFDWHV WKDW KH KLPVHOI DQG SUREDEO\ KLV IROORZHUV KDG EHHQ DUGHQW VXSSRUWHUV RI WKH %XND\ULVW 2UJDQL]DWLRQ³VXSSRUWHUV ZKR EURNH ZLWK $EË 0XVOLP WKUHH WR IRXU \HDUV DIWHU WKH 5HYROXWLRQ KDG HUXSWHG DQG ZRQDQGLQJRRGWLPHIRUWKHPWRPDNHNQRZQWKHLUGLVVDWLVIDFWLRQZLWK WKHIDFWWKDW$EË0XVOLPKDGH[FKDQJHGWKHLUULÉÀIRUKLVu$EEÀVLG5LÉÀ 'DQLHO·VXQGHUVWDQGLQJRIWKHILJKWLQJDURXQG%DONKDQGKLVGDWLQJLW WR DUH HYHQ OHVV DFFXUDWH $V LW ZHUH WKH ILJKWLQJ ZDV D QDWXUDO DWWHQGDQW WR WKH LQLWLDO EUHDNRXW RI WKH 5HYROXWLRQ ,W LV FOHDUO\ HYLGHQWIURPDEDUÈ·VDFFRXQWWKDWWKHVHHYHQWVKDGVWDUWHGEHIRUHWKH FDSLWXODWLRQ RI 0DUZ DQG HYHQ EHIRUH WKH 8PD\\DG IRUFHV VWDWLRQHG LQ ODUJHJDUULVRQVVXFKDV%DONKKDGVWDUWHGWRGLVLQWHJUDWH:KDWSUREDEO\ PLVOHG 'DQLHO LV DEDUÈ·V VW\OH DEDUÈ FRPPHQFHG KLV DFFRXQW RI WKH DVVDVVLQDWLRQ RI WKH WZR VRQV RI .LUPÀQÈ D ODWHU RFFXUUHQFH ORFDWHG LQ WKHHYHQWVRIWKH\HDUE\UHFRXQWLQJKRZWKHHYHQWVLQDQGDURXQG %DONKZLWKZKLFKu8WKPÀQLEQDO.LUPÀQÈZDV\HWWREHDVVRFLDWHGKDG VWDUWHG DEDUÈ·V XVDJH RI WKH $UDELF HTXLYDOHQW RI WKH (QJOLVK SDVW SHUIHFW ¶KDG VHQW· NÀQD ZDMMDKD VHHPV WR KDYH HOXGHG 'DQLHO &RQVHTXHQWO\ KLV XQGHUVWDQGLQJ RI WKH FRPSRVLWLRQ DQG DOLJQPHQW RI WKH IRUFHV RI WKH WZR DQWDJRQLVWV ZDV IXUWKHU UHPRYHG IURP WKH IDFWV ZKLFKWKHDFFRXQWHVWDEOLVKHV $ SURSHU UHFRQVWUXFWLRQ RI WKHVH HYHQWV PXVW VWDUWZLWK WKH HYHQWV RI WKHILUVWHUXSWLRQ RQ 5DPDÉÀQ-XQH LQ 6DTÈGXQMZKHQ $EË 0XVOLP DIIHFWHG KLV ILUVW RUFKHVWUDWHG GHSOR\PHQW RI KLV FRPPDQGHUV WR WKH GLVWULFWV 7KLV PHDQV WKDW WKH HYHQWV RQ ZKLFK 'DQLHOUHVWVKLVDUJXPHQWKDGVWDUWHGWKUHHPRQWKVEHIRUHWKHHQGRIWKH \HDUDQGVL[PRQWKVEHIRUHWKHFDSLWXODWLRQRI0DUZ,WZDVRQHRI WKHILUVWVDOYRVLQWKHVHYHUHO\XQGHUUHSRUWHGFKDLQRISXUJHVZKLFKWRRN SODFH LQ D PDVWHUO\ RUFKHVWUDWHG PDQQHU LQ WKH RXWO\LQJ GLVWULFWV RI .KXUÀVÀQXNKÀULVWÀQDQG7UDQVR[DQLD
6HH1DUVKDNKÈ)U\HSS1DUVKDNKÈSS DEDUÈ,,S%DOÀGKXUÈ$QVÀEDO$VKUÀI,,,SWULEHV@NQRZ WKH\RXJKWWRJURZLQGLJQDQWEHIRUHLQGLJQDWLRQEHFRPHVIXWLOH DEOLJK5DEÈuDWDIÈ0DUZLQZDLNKZDWDKÀ DQ\DJKÉDEËTDEODDQOÀ\DQIDuDOJKDÉDEX
6R$EËDO0D\OÀrZURWHWR=L\ÀGLEQu$EGDO5DPÀQDO4XVKD\UÈWKH GLVSODFHG 8PD\\DG VXEJRYHUQRU RI %DONK DQG GH IDFWR OHDGHU RI WKH 8PD\\DG FRDOLWLRQ HOHPHQWV UHJURXSHG QRZ LQ 7LUPLGK VHHNLQJ UHFRQFLOLDWLRQ WKH ODWWHU UHVSRQGHG IDYRUDEO\ 7KH HQWLUH 8PD\\DG IRUFHV SUHVHQW LQ WKH DUHD FDPH EDFN IURP 7LUPLGK DQG OLQNHG XS ZLWK $EË DO0D\OÀr VRPHZKHUH RQ WKH VRXWKHUQ EDQN RI WKH 2[XV RQH SDUDVDQJ IURP %DONK VHWWLQJ WKH VWDJH IRU WKH RQO\ FORVHWRUHDO VKRZGRZQHDVWRIËV 7KHFRPSRVLWLRQRIWKLV8PD\\DGFRDOLWLRQLVDQLPSRUWDQWNH\WRWKH XQGHUVWDQGLQJ RI WKH GHPRJUDSKLF VWUXFWXUHV RI WKHDQWDJRQLVWVVLQFH LW LV WKH RQO\ IDFWXDO HOHPHQW WR ZKLFK 'DQLHO DQFKRUV KLV H[FOXVLRQ RI 7UDQVR[DQLD IURP WKH 5HYROXWLRQDU\ FRDOLWLRQ ,W LV FOHDU WKDW DOO WKUHH PDMRU $UDE DOOLDQFHV³0XÉDU $EË0XVOLP@WR.KXUÀVÀQZLWKDOHWWHUWR KLV 6KÈuDK LWV WH[W >UHDG@ ¶ , KDYH GLVSDWFKHG WR \RX WKH JORU\ RI WLPH PDMGDOGDKU u$EGDO5DPÀQLEQ0XVOLPP\PDZOÀ7KRXVKDOW\LHOGWR KLP WKH UHLQV RI >SRZHU DV UHJDUGV@ \RXU DIIDLUV DQG OHDYH WR KLP WKH EXUGHQVRI>PDQDJLQJ@\RXUZDUZLWKWKHHQHP\«·>@,EUÀKÈPRUGHUHG $EË0XVOLPWRUHSRUWWR$EË6DODPDK>@DQGKHRUGHUHG$EË6DODPDK WR VWD\ LQ .ËIDK >@ ,EUÀKÈP DVVLJQHG WR $EË 0XVOLP LQ FDVH KH WULXPSKHG WKH JRYHUQRUVKLS RI .KXUÀVÀQ 6LMLVWÀQ .LUPÀQ -XUMÀQ 4ËPLV5D\\,¿EDKÀQDQG+DPDGKÀQDQGKHDVVLJQHGWR$EË6DODPDK WKHJRYHUQRUVKLSRIWKHODQGVEHORZWKH+DPDGKÀQ3DVV³,UDTDO-D]ÈUDK DQGDO6KÀP
7KHDEVROXWHDXWKRULW\FRQIHUUHGRQ$EË0XVOLPE\WKH,PÀPE\YLUWXH RI WKH ILUVW PHDVXUH LV DOVR PHQWLRQHG E\ DEDUÈ DQG %DOÀGKXUÈ ZKR DOVRLPSDUWDZHDNHUVHQVHRIWKHIDFHVDYLQJLQWHUPHGLDWHUROHUHVHUYHG IRU$EË6DODPDKLQWKHVHFRQGPHDVXUH 7KLV DFFRXQW LV PLVOHDGLQJ RQO\ LQDVPXFK DV LW SRUWUD\V ,EUÀKÈP DV DQ DFWLYH DQG REH\HG FRPPDQGHULQFKLHI ,QGHHG WKH XSVHW RU PRUH DFFXUDWHO\ WKH UHYHUVDO RI WKH FKDLQ RI FRPPDQG DQG WKH VKLIW LQ WKH UHDO FHQWHU RI SRZHU GLG RFFXU %XW WKHDJHQWRI FKDQJH ZDV QRW,EUÀKÈ P QRU FRXOG LW KDYH EHHQ $EË 6DODPDK RU DQ\ RI WKH .ËIDQ SRZHU EURNHUV7KHUHDODJHQWRIFKDQJHZDVWKHQHWUHVXOWDQWRIWKHEDODQFHRI SRZHURQWKHILHOG,QHLJKW\HDUV%XND\U·VRUJDQL]DWLRQVRI IXUWKHU H[WHQGHG E\ $EË 6DODPDK·V DUUDQJHPHQWV RI FD KDG FRPSUHKHQVLYHO\ WUDQVIRUPHG WKH HDUOLHU EDODQFH RI SRZHU DQGVKLIWHGWKHFHQWHURIJUDYLW\WR.KLGÀVK·VDQG$EË0XVOLP·V JUDVV
$NKEÀUSS %DOÀGKXUÈ$QVÀEDO$VKUÀI,,,SDEDUÈ,,SS
&+$37(5)285
URRWV FRQVWLWXHQF\ ,I WKH DJHQW RI FKDQJH KDV WR KDYH WKH IDFH DQG WKH QDPH RI DQ LQGLYLGXDO WKRVH FDQ RQO\ EH $EË 0XVOLP·V +H UHGXFHG $EË 6DODPDK WR ZKDW .KLGÀVK KDG UHGXFHG %XND\U EXW WKDQNV WR %XND\U·V SRVW.KLGÀVK RUJDQL]DWLRQV WKH PRUH PDWXUH DQG H[SDQGHG 2UJDQL]DWLRQ ZDV WKLV WLPH DURXQG LQ D SRVLWLRQ WR PRELOL]H WKH HQWLUH ,UDQLDQODQGVFDSHWRVLGHOLQHWKH2UJDQL]DWLRQ·V.ËIDQOHDGHUVKLSDQG WRGHOLYHUWKHIDWDOEORZWRWKHUXOLQJ$UDE(VWDEOLVKPHQW :KDWWKHILUVWDQGWKLUGPHDVXUHVERLOHGGRZQWRZDVDWKURZEDFNWR WKH SUH%XND\U UHYLYDO HUD EHIRUH %XND\U WKURXJK KLV HIIHFWLYH RUJDQL]DWLRQV RI KDG HQGHG WZR GHFDGHV RI H[SHULPHQWDWLRQ %XW LW ZDV QRW D UHYHUVLRQ WR WKH HDUO\ \HDUV RI WKDW HUD WKRVH EHQLJQ \HDUV RI $EË u,NULPDK 0XDPPDG LEQ .KXQD\V DQG .DWKÈU LEQ 6DuG ZKHQ WKH SDWWHUQ RI OHDGHUVKLS UHVWHG RQ D ¶UHPRWHFRQWURO· VW\OH RI GHOHJDWLQJWR.KXUÀVÀQD.ËIDQHQYR\LQFKLHI7KHWKLUGPHDVXUHWKDW RI IRUFLQJ $EË 6DODPDK WR VWD\ LQ .ËIDK DQG FRQVHTXHQWO\ WR FHDVH PHGGOLQJ LQ WKH DIIDLUV RI WKH .KXUÀVÀQ &KDSWHU ZDV D YLUWXDO ¶GHFODUDWLRQ RI LQGHSHQGHQFH· D YLROHQW UHODSVH WR WKH GUHDG ZKLFK WKH .KLGÀVK \HDUV UHSUHVHQWHG WR WKH .ËIDQ HOLWH $EË 6DODPDK FRXOG QRW KDYHRSWHGIRURUDJUHHGWRWKHQHZPHDVXUHV 7KH IRXUWK PHDVXUH ZDV GHVLJQHG E\ WKH ¶GRFWRUV· RI WKH u$EEÀVLG ULZÀ\DK LQ UHWURVSHFW WR H[SODLQ WKH WHPSRUDU\ SRZHU ZKLFK $EË 6DODPDK PDQDJHG WR KROG RQ WR LQ WKH GRPDLQV ZHVW RI WKH 7LJULV IRU DOPRVWVL[PRQWKVDIWHUWKH.KXUÀVÀQL\\DKHQWHUHG.ËIDKDQGWRMXVWLI\ $EË0XVOLP·VRUGHUVWRKLVVXEJRYHUQRULQ)DUVWRNLOO$EË6DODPDK·V RIILFLDOV ZKRP KH GDUHG GLVSDWFK HDVW RI WKH LPDJLQDU\ OLQH )XUWKHUPRUH WKLV PHDVXUH FDUULHV UHVLGXDO HFKRHV IURP WKH SUHVXPHG GHDOEHWZHHQ$EË0XVOLPDQG,EUÀKÈP 7KH VHFRQG PHDVXUH LV WKH PRVW FXQQLQJ RI DOO ,W SUHVHUYHV D VHPEODQFH RI FRPSRVXUH DQG VPRRWK KLHUDUFKLFDO IORZ RI FRPPDQG ZLWKLQWKHUDQNVXQGHUWKHHIIHFWLYH,PÀPFRPPDQGHULQFKLHI$VWKXV LW PXVW KDYH EHHQ SDUWO\ GHVLJQHG DV D IDFHVDYLQJ PHDVXUH %XW LW DOVR SDUWO\UHIOHFWVZKDWKDGDFWXDOO\KDSSHQHG2IFRXUVH$EË0XVOLPKDG QRLQWHUHVWLQFRPSOHWHO\EXUQLQJKLVEULGJHVZLWKWKH:HVW+LVGHVLJQV KDG SUREDEO\ QHYHU EHHQ FRQILQHG WR WKH ,UDQLDQ WHUULWRU\ $Q ,VODPLF HPSLUH KHDYLO\ GUHQFKHG LQ ,UDQLDQ LQIOXHQFH PXVW KDYH DSSHDUHG WR KLPWREHDGHVLUDEOHDQGDWWDLQDEOHWKRXJKSUREDEO\GLVSHQVDEOHJRDO ,I KH ZDV VHFXUHO\ LQ FRQWURO LQ .KXUÀVÀQ KH VWLOO QHHGHG DEULGJHKHDG LQWKH:HVW1DWXUDOO\$EË6DODPDKDQGWKH.ËIDK&KDSWHURIZKLFK KH ZDV VWLOO LQ FRQWURO ZHUH WKH QHFHVVDU\ DQG VXIILFLHQW DVVHWV DW OHDVW
$NKEÀUSFIDEDUÈ,,,S'KDKDEÈ7ÀUÈNKDO,VOÀP9,,,S
5(3(5&866,216,1.½
XQWLO $EË 0XVOLP FRXOG SXW KLV GHDO ZLWK ,EUÀKÈP LQWR HIIHFW 7R WKDW H[WHQW D EHQLJQ H[FKDQJH RI PHVVDJHV IRU D QHFHVVDU\ SHULRG RI WLPH ZDV D FRPIRUWDEOH RSWLRQ %XW WKLV GLG QRW LQFOXGH WKH VXEPLVVLRQ RI UHSRUWV QRU EHLQJ DW WKH UHFHLYLQJ HQG RI LQVWUXFWLRQV $OORZLQJ IRU WKH H[SHFWHGH[DJJHUDWLRQVDQGLQWHUSRODWLRQVRI$NKEÀUWKHRQO\VRXUFHWKDW UHSRUWV VXFK GHWDLOV WKLV ZDV H[DFWO\ ZKDW KDG KDSSHQHG³WKDW LV XQWLO VXFKWLPHDV$EË0XVOLPZDVDEOHWRFRPSOHWHO\FKDQJHWKHHTXDWLRQLQ .ËIDKDVKHKDGGRQHLQ.KXUÀVÀQ ,3VHXGRPDQDJHPHQWE\&RUUHVSRQGHQFH 7KH SHULRG EHWZHHQ $EË 0XVOLP·V WDNHRYHU LQ .KXUÀVÀQ DQG WKH DGYHQW RI WKH .KXUÀVÀQL\\DK LQ .ËIDK ZLWQHVVHG WKH GHJHQHUDWLRQ RI $EË 6DODPDK·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Ë 6DODPDK PRVW RI ZKLFK ZH ILQG LQ$NKEÀUKHLQLWLDWHGHLJKWHHQDQGUHFHLYHGRQO\ILYHRQHRIZKLFKZDV DUHSULPDQGDQGWZRRIZKLFKZHUHVRUWRIJHQHUDOEULHILQJVGUDIWHGDQG VHQW DIWHU WKH IDFW +H VHQW WKUHH OHWWHUV WR $EË 0XVOLP DQG UHFHLYHG IURP KLP WZR +H VHQW IRXU OHWWHUV WR &&'&- DQG UHFHLYHG RQH +H DOVRVHQWHOHYHQFRPPXQLFDWLRQVWRSURPLQHQWILJXUHVDQGIRUFHVLQDQG DURXQG .ËIDK DQG WKH UHVW RI ,UDT DQG UHFHLYHG QRQH %XW WKHVH ODVW HOHYHQ OHWWHUV ZHUH QRW LQWHUQDO 2UJDQL]DWLRQ FRPPXQLFDWLRQV DQG DQ\KRZ$EË6DODPDKZDVDWWKHWLPHRIWKHVHFRPPXQLFDWLRQVUXQQLQJ WKH VKRZ LQ .ËIDK DQG WKHVHOHWWHUVZHUHVHQWHLWKHUWR LQFLWHRWKHUVWR UHYROW RU WR KDQGOH WKH 2UJDQL]DWLRQ·V JURZLQJ DGPLQLVWUDWLYH QHHGV +HUHFHLYHGDOHWWHUIURPWKH,PÀPDQGRQHIURP$EËu$ZQ %XW WR XQGHUVWDQG WKH GHJUHH RI $EË 6DODPDK·V QHZ GH IDFWR LUUHOHYDQFH DQG WKH VXEVHTXHQW UHYLYDO RI KLV UHVLGXDO UHOHYDQFH WKLV FRPSOH[ PRYHPHQW RI PDLO PXVW EH VHHQ ZLWKLQ FRQWH[W 7KH SHULRG
$NKEÀUSS%DOÀGKXUÈ$QVÀEDO $VKUÀI,,,SSDEDUÈ,,S,,,SS'ÈQDZDUÈS$]GÈSS \RXUGHFLVLRQ WR@GLJDWUHQFKIRU\RXUVHOIDQG\RXUIROORZHUVWKLVLVWKH,PÀP·VRSLQLRQ DQGLQLW>OLHV@\RXUVWUHQJWK1D¿U>LEQ6D\\ÀU·V@HQHPLHVDQGWKRVHZKR KDYHEHHQILJKWLQJKLPZLOOUHVRUWWR\RXWRILQGVWUHQJWK.HHSDYRLGLQJ ZDU IRU DV ORQJ DV \RX FDQ DGYDQFH DQG UHWUHDW DQG GR QRW DQWDJRQL]H 1D¿UXQWLOWKHDGYHQWRI0XDUUDP
)RUW\ WZR GD\V ODWHU 6XOD\PÀQ LEQ .DWKÈU DQG RWKHU EDWWOH KDUGHQHG DQG H[SHULHQFHG ZDUULRUV VXJJHVWHG D WUHQFK DQG $EË 0XVOLP RQO\ WKHQ PRYHG WR LPSOHPHQW ZKDW $EË 6DODPDK KDG VXJJHVWHG DFNQRZOHGJLQJ E\ WKH ZD\ WKDW KH KDG UHFHLYHG LQVWUXFWLRQV WR WKLV HIIHFW 'XULQJ WKH UHPDLQGHU RI WKLV VWDJH $EË 6DODPDK DSSHDUV WR KDYH NHSW KLV VLOHQFH DQG VWD\HG RQ WKH VLGHOLQHV H[FHSW IRU VHQGLQJ KLV PHVVHQJHU WR GHOLYHU WR $EË 0XVOLP D UDWKHU RGG DQG SRLQWOHVV OHWWHU IURPWKH,PÀP ¶LQIRUPLQJ· KLPRIZKDWZDVKDSSHQLQJRQKLVRZQWXUI HWF:KHQWKLVVWDJHZDVFRQFOXGHGE\WKHFDSWXUHRI0DUZDQGWKH XQHTXLYRFDO YLFWRU\ LQ .KXUÀVÀQ $EË 0XVOLP ZURWH GLUHFWO\ WR WKH ,PÀP ZLWK WKH JRRG WLGLQJV DQG KH VHQW D FRS\ RI WKH VDPH WR $EË 6DODPDK
DEDUÈ,,SS $NKEÀUS ,ELGS ,ELGSS ,ELGS
&+$37(5)285
,$EË6DODPDKDQGWKH)LUVW3KDVHVRI&&'&-·8&DPSDLJQ 7KH HDUO\ SKDVHV RI 4DDEDK·V FDPSDLJQ ZHUH H[FOXVLYHO\ FRQGXFWHG WKURXJK GLUHFW DQG FRQVWDQW FRPPXQLFDWLRQV EHWZHHQ KLPVHOI DQG $EË 0XVOLP)LHOGUHDOLWLHVZHLJKHGVRKHDYLO\WKDWHYHQWKHDXWKRURI$NKEÀU DEDQGRQHG KLV QRUP RI SXVKLQJ WKH ,PÀP·V LPDJH LQWR WKH IRUHIURQW RI HYHQWV ,Q IDFW WKH HQWLUH .ËIDQ OHDGHUVKLS ZDV UHOHJDWHG WR LQDFWLRQ ZKLOH 4DDEDK ZDV VZHHSLQJ ZHVWHUQ .KXUÀVÀQ -XUMÀQ 4ËPLV DEDULVWÀQ DQG -LEÀO $GPLQLVWUDWLYH DQG SROLWLFDO DSSRLQWPHQWV WD[ FROOHFWLRQV DQG ILVFDO SROLF\ PLOLWDU\ WDFWLFV SODQV DQG UHLQIRUFHPHQWV DQGDOOVRUWVRIVWUDWHJLFDQGWDFWLFDOGHFLVLRQVZHUHWDNHQLQ0DUZRURQ WKHFDPSDLJQWUDLO (YHQ WKH LQFDSDFLWDWHG EXW RIILFLRXV $EË 6DODPDK GLG QRW LQWHUMHFW EHIRUH 4DDEDK KDG RFFXSLHG 5D\\ LQ QRUWKFHQWUDO ,UDQ DQG VWDUWHG KLV LQFXUVLRQV LQWR WKH HDVWHUQ DQG FHQWUDO SDUWV RI -LEÀO LQ ¸DIDU 2FWREHU $EË 6DODPDK ZURWH WR $EË 0XVOLP ZLWK VRPH LQWHOOLJHQFH RQ WKH 8PD\\DG PRELOL]DWLRQ XQGHU ,EQ ¹XEÀUDK DQG XUJHG KLP WR VHQG UHLQIRUFHPHQWV WR 4DDEDK +H DOVR ZURWH WR 4DDEDK ¶RUGHULQJ· KLP WR ELGH KLV WLPH DW 5D\\ XQWLO KH ¶UHFRQQRLWHUHG· WKH ILHOG³D VWUDQJH RUGHU IURP D OD\PDQ WR DQ DEOH JHQHUDO 'LG 4DDEDK UHDOO\ QHHG WKLV WHPSHULQJ RUGHU" $NKEÀU·V DFFRXQW JRHV RQ WR VKRZ ERWK $EË 0XVOLP DQG 4DDEDK KHHGLQJ WKH LQWHOOLJHQFHDQGWKHRUGHUV4DDEDKKDGEHHQSUHSDULQJWROHDYH5D\\ DQG WR DGYDQFH ZHVW ZKHQ KH UHFHLYHG $EË 6DODPDK·V OHWWHU &RQVHTXHQWO\UHODWHV$NKEÀUKHSRVWSRQHGKLVSODQVDQGVWD\HGDW5D\\ ZDLWLQJ IRU UHLQIRUFHPHQWV IURP $EË 0XVOLP 5HLQIRUFHPHQWV NHSW DUULYLQJ LQ VXFFHVVLYH ZDYHV RYHU D SHULRG RI DURXQG ILYH PRQWKV XQWLO WKH\ UHDFKHG WHQ WKRXVDQG WURRSV XQGHU HOHYHQ JHQHUDOV 7KLV ILJXUH DPRXQWHG WR RQHWKLUG RI 4DDEDK·V RULJLQDO WURRSV 7KLV LV DQ RGG DFFRXQW 7KHUH LV QRWKLQJ VWUDQJH LQ $EË 6DODPDK·V RIILFLRXV GRQDWLRQ RI PLOLWDU\ LQWHOOLJHQFH WR KLV PDUFKLQJ EUHWKUHQ DQG WKHLU LQFUHDVLQJO\ LQGHSHQGHQW ILHOG DQG UHJLRQDO FRPPDQGV %XW 4DDEDK·V UHSRUWHG EHKDYLRU LV XQWHQDEOH ,W LV QRW SRVVLEOH WKDW KH KDG IDLOHG WR ILHOG KLV RZQ VFRXWV QRU WKDW KH KDG EHHQ SUHSDULQJ WR UHVXPH KLV DGYDQFH EHIRUH UHFHLYLQJ WKHLU UHFRQQDLVVDQFH UHSRUWV (YHQ LI KH ZDVUHO\LQJRQ WKH .ËIDQ 2UJDQL]DWLRQ IRU VXFK LQWHOOLJHQFH KH ZRXOG QRW KDYH PDGH XSKLVPLQGUHJDUGLQJKLVQH[WPRYHDQGLWVWLPLQJEHIRUHUHFHLYLQJWKH UHSRUWV ZKLFK KH PXVW KDYH EHHQ DQWLFLSDWLQJ 0RUHRYHU LI DIWHU UHFHLYLQJ $EË6DODPDK·V OHWWHUKHKDGWRSXWRIIKLVLQWHQGHGSODQVIRU DVORQJDVILYHPRQWKVLQRUGHUWRZDLWIRUWKHEXLOGXSRIUHLQIRUFHPHQWV
,ELGSS
5(3(5&866,216,1.½
RI DV IRUPLGDEOH D VL]H DV WKDW ZKLFK KH XOWLPDWHO\ UHFHLYHG WKHQ KLV LQLWLDO SODQV PXVW KDYH EHHQ JURVVO\ PLVFRQFHLYHG LQ D PDQQHU WKDW LV LQFRPSDWLEOH ZLWK KLV PLOLWDU\ DELOLWLHV 7KHIODZLQ WKLVDFFRXQWFDQ EH GHWHFWHGLQWKHDOOHJDWLRQWKDW4DDEDKKDGEHHQSUHSDULQJWRDGYDQFH IURP 5D\\ ,W ZDV GHVLJQHG WR LPSDUW WKH LPSUREDEOH LPSUHVVLRQ WKDW ZKHQ KH UHFHLYHG $EË 6DODPDK·V ¶RUGHUV· WR KDOW KH ZDV GLVSRVHG WR REH\ DQG WKDW KH FDOOHG RII KLV SODQV DQG VWD\HG IRU ILYH YHU\ ORQJ PRQWKV LQ FRPSOLDQFH ZLWK KLV VXSHULRU·V RUGHUV ,Q DOO FDVHV QR UHSO\ IURP4DDEDKLVUHSRUWHG ,W ZDV QRW XQWLO DIWHU WKH EDWWOH DW -ÀEDOT DQG WKH FDSWXUH RI ,¿IDKÀQ RQ 5DMDE 0DUFK WK WKDW $EË 6DODPDK·V UHOHYDQFH ZDV UHODWLYHO\ UHFRJQL]HG DQHZ 4DDEDK ZURWH WR $EË 0XVOLP ZLWK WKH WLGLQJVRIWKHDVWRXQGLQJYLFWRU\$EË0XVOLPZURWHEDFNJORULI\LQJKLP DQGQRWDEO\LQVWUXFWLQJKLPWRZULWH$EË6DODPDKDQGWRFRPSO\ZLWK ZKDWHYHU LQVWUXFWLRQV KH UHFHLYHG IURP KLP )LYH PRUH PRQWKV ZRXOG HODSVH EHIRUH &&'&- GLG VR 7KH EHKDYLRU RI $EË :81.2 &3) &&'&- .8 :3)*789&3)&'1* 7KH VXSHULRU SROLWLFLDQ UHDOL]HG ZKDW WKH PDJQLILFHQWJHQHUDOGLGQRWRUSUREDEO\GLGEXWQDWXUDOO\UHVLVWHG$IWHU WKH PDMRU 8PD\\DG IRUFH HDVW RI WKH 7LJULV KDG EHHQ FUXVKHG WKH 5HYROXWLRQDU\ IRUFHV DORQJ ZLWK 4DDEDK·V LPPHQVHO\ JURZLQJ UHQRZQ ZRXOG VRRQ EH DSSURDFKLQJ ,UDT $EË 6DODPDK·V WXUI DQG WKH VLWH RI WKH H[SHFWHG GHFLVLYH VKRZGRZQ ZLWK WKH FRUH RI 8PD\\DG SRZHU $ UHVXUJHQFH RI WKH UHOHYDQFH RI $EË 6DODPDK DQG WKH .ËIDQ 2UJDQL]DWLRQDQGVKRXOGKHWULXPSKDQLPPHQVHERRVWWR4DDEDK·V SUHVWLJH ZHUH DOO EXW LQHYLWDEOH 7KH FXQQLQJ $EË 0XVOLP UHFRJQL]HG WKH VDJDFLW\ RI D UDSSURFKHPHQW ZLWK WKH GXUDEOH ERVV ZKRP KH KDG UHGXFHG WR D VSHFWDWRU +H PXVW KDYH DOVR UHDOL]HG WKDW SURPRWLQJ D VLWXDWLRQ LQ ZKLFK 4DDEDK VXERUGLQDWHG KLPVHOI WR $EË 6DODPDK ZRXOG RQO\ JLYH WKH .ËIDQ PRUH RI ZKDW KH DOUHDG\ KDG³D EHQLJQ WRRWKOHVV PRUDO DXWKRULW\ EXW WKDW LW ZRXOG JR D ORQJ ZD\ WRZDUGV WKH FRQWDLQPHQW RI WKH PRUH GDQJHURXVO\ JURZLQJ SUHVWLJH DQG PRUDO EXW DUPHG DXWKRULW\ RI 4DDEDK 7KXV KH SURGGHG KLP WR GHIHU WR $EË 6DODPDK %XW WKH SURXG DQG SUREDEO\ DPELWLRXV JHQHUDO GLG QRW FRPSO\ ,$EË6DODPDKDQGWKH/DVW3KDVHVRI4DDEDK·V&DPSDLJQ 6R LW ZRXOG EH VRPHWLPH EHIRUH $EË 6DODPDK·V IXOO HIIHFWLYHQHVV ZDV JUDGXDOO\ UHVWRUHG DW D SDFH LQYHUVHO\ SURSRUWLRQDO WR WKH VKULQNLQJ GLVWDQFH EHWZHHQ .ËIDK DQG WKH DGYDQFLQJ .KXUÀVÀQL\\DK ,Q WKH PHDQWLPH $EË 6DODPDK SHUVHYHUHG XQDEDVKHG LQ WKH VSLULW RI KLV
,ELGSS
&+$37(5)285
SUHYLRXVOHWWHUWR4DDEDK'XULQJWKHSURORQJHGVLHJHRI1LKÀYDQGKH VHQW KLP DQ LQVLJKWIXO OHWWHU XUJLQJ KLP WR FRQFOXGH WKH VWDQGVWLOO E\ H[WHQGLQJ WR WKH EHVLHJHG JXDUDQWHHV RI VDIH FRQGXFW WRDQ\GHVWLQDWLRQ WKH\ PD\ FKRRVH +H UHDVRQHG WKDW WKH FULSSOLQJ SV\FKRORJLFDO LPSDFW RQ WKH 8PD\\DG IRUFHV UHVXOWLQJ IURP WKHLU FUXVKLQJ GHIHDW DW -ÀEDOT ZDV IDGLQJ $QG 4DDEDK VDZ WKH OLJKW %XW DIWHU 1LKÀYDQG ZDV FDSWXUHG KH ZURWH WR $EË 0XVOLP DQG VHQW KLP WKH KHDGV RI WKH VODLQ³QRWDZRUGWR$EË6DODPDKWKRXJK $EË 6DODPDK ZDV QHYHUWKHOHVV JURZLQJ H[FHHGLQJO\ DFWLYH +H VHL]HG WKH RSSRUWXQLW\ RI WKH FKDRV WKDW SODJXHG ,EQ +XED\UDK·V FDPS DQG VHQW KLV PHVVHQJHUV DQG SURSDJDQGLVWV WR 0DZ¿LO DQG DOVR WR WKH GHVHUWV RXWVNLUWLQJ %D¿UDK DQG .ËIDK WR IHUPHQW UHYROW DPRQJVW LWV %HGRXLQV 6FRUHV RI ERRW\KXQJU\ WULEHV DQG WULEDO FKLHIWDLQV URVH DQG GRQQHG EODFN DOO RYHU ,UDT DQG WKH ERUGHULQJ DUHDV³LQ ¼XOZÀQ .KÀQLTÈQ WKH VDZÀG RI %D¿UDK DQG .ËIDK DQG WKH HQWLUH ORZHU (XSKUDWHV DQG LQ 7DNUÈW 2QO\ WKH DP¿À7 ZHUH VWLOO KHOG E\ ,EQ +XED\UDK %XW WKHVH HOHPHQWV DOLHQ WR WKH 2UJDQL]DWLRQ UHFRJQL]HG WKH DSSURDFKLQJ YLFWRULRXV JHQHUDO UDWKHU WKDQ WKH KLGLQJ FODQGHVWLQH RUJDQL]HUWKH\FRPPXQLFDWHGZLWK4DDEDKDQGKHZURWHGLUHFWO\WR WKHPDQGWRIHZQRWDEOHVRI%D¿UDKWKXVRYHUVWHSSLQJ$EË6DODPDK :KHQ $EË 6DODPDK DOOHJHGO\ UHFHLYHG WKH QHZV RI ,EUÀKÈP·V GHWHQWLRQ 4DDEDK KDG DOUHDG\ HQWHUHG ¼XOZÀQ WKH ODVW SRVW LQ WKH -LEÀO SURYLQFH RQ WKH QRUWKHDVWHUQ ERUGHU RI ,UDT LQ 'KË DO¼LMMDK -XO\$XJXVW DQG WKH JRYHUQRU RI ,UDT ,EQ +XED\UDK KDG SLWFKHGKLVFDPSQRWYHU\IDURIILQWKHWUHQFKDW-DOËOÀrRQWKHKLJKZD\ WR DO6DZÀG DQG IDUWKHU VRXWKZHVW WR .ËIDK $EË 6DODPDK ZURWH WR 4DDEDK ZLWK ERWK SLHFHV RI QHZV +H UHFRPPHQGHG WKDW KH VKRXOG DYRLG FRQWDFW ZLWK ,EQ +XED\UDK·V IRUFHV RXWIODQN KLP DQG GDVK LQWR .ËIDK ´IRU WKH SHRSOH RI .ËIDK DUH XQDQLPRXVO\ ZLWK \RX DQG WKH\ DUHRIWKHVDPHFRQYLFWLRQDV\RXDUHµ7KHPHVVHQJHUZKRFDUULHGWKLV OHWWHU ZDV $EË 0DVUËU u·VÀ LEQ ¼DP]DK %XND\U·V QHSKHZ QR KH ODWHU UHSRUWHG 4DDEDK·V RQWKHVSRW UHVSRQVH WR WKH OHWWHU YHUEDWLP ´,QGHHGE\*RGKHLVULJKWDQG,VKDOOFDUU\RXWKLVLQVWUXFWLRQVµ %XW KH VWLOO UHIUDLQHG IURP ZULWLQJ 7KH RQO\ FRPPXQLFDWLRQ 4DDEDKLVUHSRUWHGWRKDYHVHQWWR$EË6DODPDKZDVLVVXHGRQO\DIWHU KH KDG FURVVHG WKH (XSKUDWHVRQ0XDUUDP $XJXVW DW
,ELGSII ,ELGS ,ELGS ,ELGSS ,ELGSS ,ELGSS
5(3(5&866,216,1.½
'LPLPPÀDOLWWOHVRXWKRI$QEÀUDOPRVWDVFORVHWR.ËIDKDVKHZRXOG HYHUJHW+HVLPSO\LQWLPDWHGWRKLPWKHQHZVRIKLVFURVVLQJ ,,$O.KDOOÀOLQ7ZLOLJKW³ 7KH$IIDLURI0XDPPDGLEQ.KÀOLGDO4DVUÈ $OWKRXJK D FDXVH IRU MXELODWLRQ 4DDEDK·V VLJQLILFDQW DFKLHYHPHQW RI FURVVLQJWKHODVWPDMRUZDWHUZD\RQKLVZD\WR.ËIDKGLGQRWKRZHYHU VSHOOILQDOYLFWRU\LQWKHEDWWOHIRU,UDT,EQ+XED\UDK·VPDLQIRUFHKDG QRWEHHQHQJDJHG\HW7UXHWRIRUPWKHFDXWLRXV$EË6DODPDKGLGQRW GURS KLV JXDUG +H ZRXOG QRW HPHUJH LQWR WKH RSHQ \HW EXW KH ZRXOG QRW ZDOORZ LQ SDVVLYLW\ HLWKHU .ËIDK ZDV IUDXJKW ZLWK DQWL8PD\\DG HOHPHQWV ZKR ZHUH QDWXUDOO\ LQFOLQHG WR EH WKH DOOLHV RI DQ\ UHYROXWLRQ EXWZKRZHUHQRWPHPEHUVRIWKH2UJDQL]DWLRQ,QFLWLQJVXFKHOHPHQWV LQWR UHEHOOLRQ ZRXOG QRW SRVH PXFK GDQJHU LQ FDVH RI IDLOXUH RI H[SRVLQJWKHVWLOOXQGHUJURXQG.ËIDQQHWZRUN 3URPLQHQW DPRQJ VXFK HOHPHQWV ZHUH DODK LEQ ,VÀT LEQ 0XDPPDG LEQ DO$VKuDWK D QHSKHZ RI WKH UHEHO RI DO¼DMMÀM·V HUD u$EG DO5DPÀQ LEQ 0XDPPDG LEQ DO$VKuDWK DO.LQGÈ DQG 0XDPPDG LEQ .KÀOLG VRQ RI WKH FHOHEUDWHG H[JRYHUQRU RI ,UDT .KÀOLG LEQ u$EG $OOÀK DO4DVUÈ RI %DMÈODK ZKR KDG EHHQ YLQGLFWLYHO\ NLOOHG E\ WKH 8PD\\DGV %RWK QRWDEOHV DQG WKHLU IROORZHUV EHORQJHG WR WKHFDXVH@RIKLPZKRZRXOGEHVDWLVIDFWRULO\DFFHSWDEOHIURP>DPRQJVW WKH UDQNV@ RI WKH )DPLO\ RI 0XDPPDG DQG OHW P\ QDPH EH FRQFHDOHG·
7KHGRFWULQHZDVRIIDUWRRPXFKVWUDWHJLFYDOXHWREHUHGXFHGWRDFRGH ZRUGDWKLQYHLORIVHFUHF\7KHVXPPRQVWRWKHFDXVHRIDQDFFHSWDEOH ,PÀP ZDV H[WUHPHO\ DSSHDOLQJ WR DOO VHFWRUV GLVDIIHFWHG ZLWK WKH 8PD\\DGV DQG LQ LW ZHUH ¶VZHHW· HFKRHV RI WKH VKËUÀ DQG WKH MDPÀuDK FRQVXOWDWLRQ DQG FRQVHQVXV ,W LQYHVWHG KHDYLO\ LQ WKH \HDUQLQJV RI VXFK QRQ6KÈuLWH JURXSV DV WKH 0XUMLrLWHV DQG WKH IROORZHUV RI DO¼ÀULWK LEQ 6XUD\M 7KH UHVWULFWLYH TXDOLILFDWLRQ DSSOLHG E\ WKH SKUDVH ¶PLQ ¯OL 0XDPPDG· FRXOG QRW KDYH EHHQ WRR GDPDJLQJ DPRQJVW WKH PRGHUDWH QRQ6KÈu.9*8 ZKR KDG QR SROLWLFDO RU LGHRORJLFDO UHDVRQV WR H[FOXGH WKH )DPLO\ RI WKH 3URSKHW )DQDWLF DQWL6KÈu.9*8 ZHUH QRW WDUJHWHG E\ WKH SURSDJDQGD DQ\ZD\ DFWXDOO\ WKH\ ZHUH WKH HQHP\ $PRQJVW QHZ FRQYHUWV LW KDUGO\ PDWWHUHG DV ORQJ DV WKH 2UJDQL]DWLRQ ZKLFK ZDV SUREDEO\ LQVWUXPHQWDO LQ WKHLU FRQYHUVLRQ LQ WKH ILUVW SODFH ZDV SRLVHG WR EUHDN WKH DUFKHQHP\³WKH 8PD\\DG (VWDEOLVKPHQW )RU IDFWLRQDO 6KÈu.9*8 ZKR KDG DOUHDG\ FRPPLWWHG WKHLU OR\DOWLHV RU DQFKRUHG WKHLU V\PSDWKLHV WKH DGPLVVLYHQHVV RI WKH ZLGH TXDOLILFDWLRQ FRXOG QRW KDYH EHHQ WKRXJKW RI DV D WKUHDW VLQFH YHU\ IHZ ZRXOG KDYH VXUPLVHG LW SRVVLEOHWKDWDQRQu$OÈGZRXOGEHFRQVLGHUHG,WPD\DOVREHUHDVRQDEO\ DVVXPHGWKDWTXLWHDQXPEHURIWKHPZHUHHYHQKRSHIXOWKDWWKHLURZQ FDQGLGDWH ZRXOG PDNH D SODXVLEOH ULÉÀ 7KLV PL[ RI WKH DXWKHQWLF LGHRORJ\ RI DOULÉÀ DQG WKH VKUHZG SURSDJDQGD ZKLFK DVVXUHG DOO WKH VHFWRUV WDUJHWHG ZDV WKH FRUH RI WKH ORQJVWDQGLQJ DQG EULOOLDQW VWUDWHJ\ ZKLFK SUHVHUYHG IRU WKH 2UJDQL]DWLRQ LWV LQGHSHQGHQFH DQG IUHHGRP RI FKRLFH DQG ZKLFK VHUYHG DV WKH JOXH ZKLFK KHOG WRJHWKHU VXFK DQ H[WHQVLYHFRDOLWLRQ )URPWKHSXUHO\SUDFWLFDOSRLQWRIYLHZWKHUHZDVDPDMRUGUDZEDFN LQ WKLV VWUDWHJ\ $ PHFKDQLVP IRU WKH DUULYDO DW WKH SURPLVHG FRQVHQVXV KDGQHYHUEHHQZRUNHG RXW,WPXVW KDYHEHHQODPHQWDEOHIRUWKHSXUH
$NKEÀUSS
5(3(5&866,216,1.½
LGHRORJXHV DQG SUDJPDWLFDOO\ LW FRXOG KDYH EHHQ FDWDVWURSKLF KDG WKHUH EHHQ DQ HTXLOLEULXP LQ WKH EDODQFH RI SRZHU EHWZHHQ WKH HYHQWXDOO\FRQWHQGLQJZLQJV7KHSRVVLELOLW\LVDPSO\GHPRQVWUDEOHLQD YHU\ LQWHUHVWLQJ GLDORJXH EHWZHHQ &&'&- DQG D VROGLHU ZKR UHIXVHG WRSD\KLVDOOHJLDQFHWRWKHXQNQRZQDFFHSWDEOH,PÀP(YHQWKRXJKWKH FRQWH[W LV GRXEWIXO DQG WKH HQWLUH VWRU\ DSSHDUV WR KDYH EHHQ LQYHQWHG WR RIIHU RQH RI WKH H[SODQDWLRQV RI KRZ 0DUZÀQ ,, FDPH WR NQRZ WKH LGHQWLW\ RI ,EUÀKÈP WKH GLDORJXH UHPDLQV VLJQLILFDQW HYHQ LI RQO\ LQDVPXFK DV DQ HDUO\ IDEULFDWRU FRXOG HQYLVLRQ WKH SRVVLELOLW\ 0DUZÀQ ,,LVUHSRUWHGWRKDYHH[SUHVVHGKLVZLVKWRNQRZWKHLGHQWLW\RIWKH´RQH ZKRVH 6KÈu&- DUH LQ .KXUÀVÀQµ 6RPHRQH YROXQWHHUHG WR GLVFRYHU WKH VHFUHW +H WUDYHOHG HDVW DQG ZKHQ &&'&- FDSWXUHG -XUMÀQ KH FDPH XSWRKLP +H VDLG ¶, FDPH WR VZHDU DOOHJLDQFH· &&'&- VDLG WR KLP ¶VZHDU LW· 7KHPDQVDLG¶WRZKRPGR,VZHDUDOOHJLDQFH"·>&&'&-@VDLG¶WRDO 5LÉÀ PLQ ¯OL 0XDPPDG· 7KH PDQ VDLG ¶WKLV LV DQ DQRQ\PRXV KRPDJH ZKLFK FDQQRW EH OHJDOO\ ELQGLQJ· &&'&- VDLG ¶DQG KRZ >LV WKDW@"· >7KHPDQ@VDLG¶ZKDWZRXOG\RXVD\LIWKHSHRSOHRIHYHU\FRXQWU\WRRN D PDQ IURP ¯O 0XDPPDG DQG VDLG ¶DOULÉÀ LV LQ RXU KDQGV· WR ZKRP IURPDPRQJVWWKHPZRXOGP\DOOHJLDQFHEH"·
2I FRXUVH WKH SRVVLELOLW\ H[LVWHG EXW LW QHYHU FDPH WR SDVV DV ZLOO EH VHHQLQGXHFRXUVH %HFDXVH WKHUH ZDV QR SDULW\ EHWZHHQ WKH SK\VLFDO IRUFHV RI WKH 5HYROXWLRQDU\ ZLQJV D ORQJ VWDQGVWLOO RU LQWHUQDO ZDU ZDV DYRLGHG %XW QRZ ZLWK WKH .KXUÀVÀQL\\DK LQ .ËIDK DQG YLFWRU\ DW KDQG WKH WLPH KDGFRPHIRUFKRRVLQJDQGSURFODLPLQJWKH,PÀP7KHLQKHUHQWO\¶DQWL GHPRFUDWLF·G\QDPLFVRILPSRVLWLRQQDWLYHWRDUHYROXWLRQZHUHQDWXUDOO\ LQFRPSDWLEOH ZLWK WKH ¶GHPRFUDF\· RIFRQVHQVXV LPSOLFLWLQWKHGRFWULQH RI DOULÉÀ 7KH DEVHQFH LQ WKH LGHRORJ\ RI WKH 2UJDQL]DWLRQ RI DQ HQVKULQHG PHFKDQLVP WR FKRRVH WKH SURPLVHG ,PÀP UHOLHYHG IURP D SRWHQWLDO LPSHGLPHQW WKRVH ZKR KDG DOUHDG\ PDGH WKHLU FKRLFH DQG SRVVHVVHGWKHSRZHUWRLPSRVHLW7KXVH[SLUHGSHUIRUFHWKHFHPHQWLQJ HIIHFW RI WKH RULJLQDO VWUDWHJ\ DQG LQHYLWDEO\ WKHUH DURVH D VLWXDWLRQ SUHJQDQWZLWKLWVRZQEUDQGQHZGLDOHFWLFVRIOHJLWLPDF\DQGSRZHU 7KH FRQILJXUDWLRQ RI WKH FRQWHQGLQJ SRZHUV FDQQRW EH YHU\ GLIILFXOW WRVNHWFKRXWLQEURDGWHUPV2QWKHRQHKDQGWKHUHZHUH$EË0XVOLP DQG KLV ZLQJ 7KH\ KDG DOUHDG\ PDGH WKHLU FKRLFH LQ IDYRU RI WKH UHODWLYHO\ REVFXUH u$EEÀVLG EUDQFK RI WKH +ÀVKLPLWH WUHH³D FKRLFH ZKLFK FRXOG KDYH EHHQ RQO\ PRUH HQWKXVLDVWLFDOO\ FRQGRQHG LQ YLHZ RI WKH DEVHQFH RI WKH UHODWLYHO\ VWURQJHU ,EUÀKÈP ZKRVH HOLPLQDWLRQ
,ELGS
&+$37(5)285
FOHDUHG WKH ZD\ IRU WKH HYHQ PRUH FRQYHQLHQW FKRLFH RI WKH OHVV OLNHO\ $EËDOu$EEÀV$EË0XVOLPKDGEHHQILUPO\LQFRQWURORI.KXUÀVÀQDQG WKH (DVW DQG LQ .ËIDK KH QRZ HQMR\HG WKH VWURQJHVW KDQG GXH WR WKH DUULYDO RI WKH .KXUÀVÀQL\\DK RI ZKLFK VXEVWDQWLDO FRQWLQJHQWV ZHUH XQLWHGLQDEVROXWHOR\DOW\WRKLP:LWKDFOHDUDQGVLQJXODUSXUSRVHDQG ZLWK WKH DGYDQWDJH RI QRW KDYLQJ WR FRQWHQG ZLWK D PHFKDQLVP RI FKRVLQJ WKH ,PÀP $EË 0XVOLP DQG KLV PHQ LQ .ËIDK KDG RQO\ WR LURQ RXW VRPH QDWXUDO LUUHJXODULWLHV LQ WKH PLOLWDU\ UDQNV EHIRUH WKH\ FRXOG LPSRVHWKHLUZLOO 2Q WKH RWKHU KDQG WKHUH ZDV $EË 6DODPDK ZLWK KLV KLVWRULF OHDGHUVKLS DQG SUREDEO\ DQ XQWROG QXPEHU RI QDWXUDOO\ GLVSHUVHG HOHPHQWV VWLOO HQWUHQFKHG EHKLQG WKH LQKHUHQWO\ LQFRKHVLYH GRFWULQH RI DOULÉÀQRZREVROHWHLQWKH5HYROXWLRQDU\FRQWH[W,QGLVDUUD\GHSULYHG RI D VROLG PLOLWDU\ EDVH DQG D VLQJXODU UDOO\LQJ SRLQW DURXQG D VSHFLILF FDQGLGDWHRUHYHQDURXQGDQDJUHHGXSRQPHFKDQLVPLWZRXOGEHRQO\ XQWLO WKH RWKHU ZLQJ KDG SXW LWV DFW WRJHWKHU WKDW $EË 6DODPDK DQG KLV ZLQJ ZRXOG EH IRUFHG WR UHOLQTXLVK WKHLU VHDUFK IRU D ULÉÀ ZLWKLQ WKH UDQNV RI WKH PRUH QDWXUDOO\ HOLJLEOH SRRO RI u$OÈGV DQG FRHUFHG LQWR ¶DFFHSWLQJ·WKHKDQGSLFNHG,PÀP ,,,7KH(IIHFWRI4DDEDK·V6XGGHQ'HPLVHRQWKH%DODQFHRI3RZHU 7KH FRH[LVWHQFH RI WKH WZR SRZHUV ZRXOG QRW KDYH EHHQ WHQDEOH IRU PXFK ORQJHU %XW D VXGGHQ RFFXUUHQFH WHPSRUDULO\ XSVHW WKH VWHDGLO\ HPHUJLQJEDODQFH7KHDUULYDOLQ.ËIDKRIDGHFDSLWDWHG.KXUÀVÀQL\\DK ZDV RI LPPHDVXUDEOH FRQVHTXHQFHV :KHWKHU E\ GHVLJQ RU DFFLGHQW &&'&-·8 HOLPLQDWLRQ DOVR HOLPLQDWHG WKH IRUPLGDEOH SHUVRQDO LQIOXHQFHKLVSUHVHQFHZRXOGKDYHFHUWDLQO\H[HUFLVHGRQHYHQWVWKRXJK LWFDQQRWEHVDLGZLWKDQ\PHDVXUHRIFHUWDLQW\LQZKLFKGLUHFWLRQ)RU DOO WKDW ZH DUH WROG KH FRXOG KDYH HTXDOO\ EHHQ DQ LPSHGLPHQW RU D ERRVWHUIRU$EË0XVOLP·VGHVLJQV ,W LV DQ H[WUHPHO\ DWWUDFWLYH SURSRVLWLRQ WR SRQGHU WKH K\SRWKHWLFDO TXHVWLRQ :KDW ZRXOG KDYH KDSSHQHG KDG &&'&- QRW SHULVKHG EHIRUH UHDFKLQJ .ËIDK" :KDW VSHFLILFDOO\ ZRXOG WKH SRZHU UHODWLRQV KDYH EHHQ EHWZHHQ WKH HVWDEOLVKHG KLVWRULF VSLULWXDO OHDGHU HQWUHQFKHG LQ .ËIDK DQG WKH PDJQLILFHQW JHQHUDO PDUFKLQJ LQWR WRZQ LQ WKH KDOR RIKLVJORULRXVWULXPSKV"$QGZKDWZRXOGWKHSRZHUUHODWLRQVKDYHEHHQ EHWZHHQD.ËIDKWKXVUHVKDSHGDQGPLOLWDULO\HPSRZHUHGDQGWKHJUD\ ZROI DQ[LRXVO\ DQG VXVSHFWLQJO\ ZDLWLQJ LQ 0DUZ" :RXOG 4DDEDK KDYH DWWHPSWHG WR WUDQVIRUP KLV 2UJDQL]DWLRQDO UDQN LQWR WKH VHOI OXPLQRXV VWDWXUH KLV WULXPSKV KDG HDUQHG KLP RU ZRXOG KH KDYH EHHQ FRQWHQW ZLWK KLV VXERUGLQDWH VWDWXV GHULYHG IURP $EË 0XVOLP·V DFWXDO DQG $EË 6DODPDK·V KRQRUDU\ VXSUHPH FRPPDQG" :RXOG WKH XOWLPDWH
5(3(5&866,216,1.½
RXWFRPH KDYH EHHQ ZKDW DFWXDOO\ FDPH WR SDVV DQG ZRXOG &&'&- KDYH EHHQ QR GLIIHUHQW IURP KLV FRPSDUDWLYHO\ GLPLQXWLYH VRQV DQG WKH RWKHU JHQHUDOV ZKR KDG WR JLYH LQ WR $EË 0XVOLP·V GHVLJQV" 2U ZRXOG KLV SUHVHQFH KDYH VLPSO\ VSDUHG WKH u$EEÀVLGV DQG $EË 0XVOLP WKUHH PRQWKV RI WKH WXJRIZDU ZLWK $EË 6DODPDK DQG WKUHH PRUH WR ULG WKHPVHOYHV RI KLP" 2U ZRXOG KLV DVVHUWLYH H[HUFLVH RI D SROLWLFDO UROH KDYH GUDVWLFDOO\ FKDQJHG WKH FRXUVH RI $UDE DQG ,VODPLF KLVWRU\ WR WKH WXQHRIDFRPSOHWHO\GLIIHUHQWG\QDVW\RUG\QDVWLHV" %XW DODV WKHVH LQWHQVHO\ LQWHUHVWLQJ DQG SRHWLFDOO\ OHJLWLPDWH TXHVWLRQV FDQQRW EH SXUVXHG IRU WKH\ DUH QRW WKH VWXII RI KLVWRU\ &&'&-·8XQWLPHO\GHDWKPDGHHYHU\WKLQJWKDWGLGQRWKDSSHQZKLFK RWKHUZLVH PLJKW KDYH LUUHOHYDQW DQG DKLVWRULFDO DQG LQ WKH SURFHVV LW GLPPHG EH\RQG DQ\ FOHDU YLVLRQ D ZKROH VHULHV RI HYHQWV ZKLFK PRVW OLNHO\GLGKDSSHQ2QH WKLQJ LVFHUWDLQKRZHYHU&&'&-·8GHDWKGLG XSVHW DW OHDVW WHPSRUDULO\ DQ LQFUHDVLQJO\ VLJQLILFDQW HOHPHQW LQ WKH HPHUJLQJ EDODQFH RI SRZHU +LV SHUVRQDO DXUD FRXOG QRW DXWRPDWLFDOO\ EH WUDQVIHUUHG WR KLV VXFFHVVRUV 7KH WUHPHQGRXV LQIOXHQFH KH ¶SDFNHG· LQ KLV ¶SHUVRQ· DV D SDUW RI WKH KLVWRULF OHDGHUVKLS RI WKH 2UJDQL]DWLRQ DQG DV WKH OHDGHU RI WKH YLFWRULRXV 5HYROXWLRQDU\ DUP\ YDQLVKHG $ SURPSW LQYHVWPHQW RI WKLV SRWHQW EOHQG RI KLVWRULFDO DQG 5HYROXWLRQDU\ OHJLWLPDFLHV ZDV PDGH LPSRVVLEOH $VVXPLQJ KH ZDV LQ IXOO DJUHHPHQW ZLWK $EË 0XVOLP KLV GHDWK GHSULYHG WKHLU ZLQJ RI D GHFLVLYH DQG SURPSW RSSRUWXQLW\ WR LPPHGLDWHO\ GHFODUH WKH DFFHVVLRQ RI WKHLU FDQGLGDWH LQ WKH JORZ RI KLV XQLPSDLUHG YLFWRU\ DQG KLV LOOXVWULRXV SUHVHQFH ,I DOWHUQDWLYHO\ KH ZDV RI D GLIIHUHQW PLQG KLV GHDWK JDYH $EË0XVOLPPRUHURRPWRPDQHXYHUDQGWRVHFXUHDQXOWLPDWHYLFWRU\ ZKLFK RWKHUZLVH PLJKW KDYH QRW EHHQ VR DWWDLQDEOH 7KXV ZLWK WKH WHPSRUDU\ QHXWUDOL]DWLRQ RI WKH FXWWLQJ HGJH RI WKH .KXUÀVÀQL\\DK·V YLFWRU\WKHVXEVHTXHQWSHULRGRIWKHWXJRIZDUZDVWKHQDWXUDOUHVXOWRI D WHPSRUDU\ HTXLOLEULXP WKDW ZDV EURXJKW DERXW E\ WKH VXGGHQ ZLWKGUDZDORIDGHFLVLYHIDFWRUQDPHO\&&'&- ,,,$O.KDOOÀO7DNHV&KDUJH ,W ZDV DO¼DVDQ LEQ 4DDEDK QR DFFRUGLQJ WR WKH PDMRULW\ RI VRXUFHVZKRVXFFHHGHGKLVIDWKHU¼XPD\GLEQ4D&'&-QR LV DOVR UHSRUWHG WR KDYH EHHQ WKH VXFFHVVRU $QG -DKVKD\ÀUÈ DYRLGV WKH
%DOÀGKXUÈ $QVÀE DO$VKUÀI ,,, S 0DGÀrLQÈ DQG $EË 0LNKQDI LQ DEDUÈ ,,, SS .KDOÈIDK ,, S ,EQ 4XWD\EDK 0DuÀULI S $]GÈ S ,EQ u$EG 5DEELK ,9 S 'KDKDEÈ 6L\DU 9, S 'KDKDEÈ 7ÀUÈNK DO,VOÀP 9,,, S $NKEÀUS7KH .KXUÀVÀQL\\DK@ HQWHUHG .ËIDK DQG WKH\ DSSRLQWHG RYHU LW LVWDuPDOË uDOÀ DO.ËIDK $EË 6DODPDKµ ,Q WKLV DFFRXQW DO¼DVDQ LQH[SOLFDEO\ DSSHDUV DV $EË 6DODPDK·V VXSHULRU DQG $EË 6DODPDK LV UHGXFHG WR D UHJLRQDO JRYHUQRU $ VHFRQG FDWHJRU\ RI DFFRXQWV FDQQRW EH WUDFHG WR D PRWKHU DFFRXQW EXW LW LV DOVR V\QRSWLF DOWKRXJK QHXWUDO DQGXQLQIRUPDWLYHDVWR$EË6DODPDK·VVWDWXVLQWKHKLHUDUFK\ $ PRUH GHWDLOHG DQG GUDPDWLF DFFRXQW LV IXUQLVKHG E\ 0DGÀrLQÈ ZKRDSSHDUVWRDVFULEHLWWRDYHU\XQOLNHO\VRXUFH$FHUWDLQu$EG$OOÀK LEQ %DGU ZKR IRXJKW DJDLQVW &&'&- LQ ,EQ +XED\UDK·V UDQNV DQG ZKRZDVGHIHDWHGDQGFKDVHGE\WKH.KXUÀVÀQL\\DKIRUDVIDUIURPWKH VFHQH RI 4DDEDK·V ODVW ZRUGV DV KH FRXOG UXQ FURZQV KLV RZQUHSRUW RI WKH EDWWOH DQG RI 4DDEDK·V IDWDO ZRXQGV E\ WUDQVPLWWLQJ 4DDEDK·VODVWLQVWUXFWLRQV´7KHZD]ÈURIWKH,PÀPLV$EË6DODPDKVR ZKHQ\RXUHDFK.ËIDKVXUUHQGHU>WKHUHLQVRI@WKLVHQWHUSULVHWRKLPµ %HVLGHV WKH DSRFU\SKDO TXDOLW\ RI WKH DFFRXQW DQG WKH IDFW WKDW 4DDEDK·V GHDWK ZDV VR VKURXGHG LQ P\VWHU\ WKDW D ODVW ZLOO GRHV QRW DSSHDU WR EH FUHGLEOH VXFK DZLOOZDVSUREDEO\XQQHFHVVDU\4DDEDK ZDV WKH PRVW EXW QRW WKH RQO\ VHQLRU RIILFLDO RI WKH 2UJDQL]DWLRQ
-DKVKD\ÀUÈS $NKEÀUSDEDUÈ,,,S .KDOÈIDK,,SFI$]GÈS'KDKDEÈ7ÀUÈNKDO,VOÀP9,,,S $EË 0LNKQDI VLPSO\ VWDWHV WKDW WKH .KXUÀVÀQL\\DK FDPH WR $EË 6DODPDK DQG
¶H[WUDFWHG KLP· DEDUÈ ,,, S -DKVKD\ÀUÈ VD\V WKDW WKH\ ¶EURXJKW KLP RXW DQG VXUUHQGHUHGWRKLPWKHUHLQVRIOHDGHUVKLS·S ,EQ4XWD\EDKUHSRUWVWKDWDO¼DVDQ LEQ4DDEDK¶VXUUHQGHUHGWR>KLP@DXWKRULW\DQG>KH@WRRNFKDUJH·0DuÀULIS $ WKLUG V\QRSWLF FDWHJRU\ VLPSO\ VKRZV $EË 6DODPDK LQ FKDUJH RIWKHQHZ SROLW\@µ ´UHFRUGV GDZÀZÈQ ZHUH EURXJKW LQWR KLV SUHVHQFH DQG OHWWHUV VWDUWHG JRLQJDQGFRPLQJ IURPDQGXQWRKLPµ+HDSSRLQWHGRIILFLDOV WRWKHYDULRXV DGPLQLVWUDWLYHIXQFWLRQV LQKLV FHQWUDODGPLQLVWUDWLRQ+H GLVSDWFKHG WD[ FROOHFWRUV WR ¶HYHU\ GLVWULFW· DQG FROOHFWHG WKH NKDUÀM +H
$NKEÀUSS DEDUÈ,,S $NKEÀUS ,ELGS DEDUÈ,,,S $NKEÀUSDEDUÈ,,,S DEDUÈ,,,S $NKEÀUS-DKVKD\ÀUÈSS
5(3(5&866,216,1.½
DSSRLQWHGVXEJRYHUQRUVDQGGLVSDWFKHGWKHPZLWKRUZLWKRXWWURRSVWR GLVWULFWV DOUHDG\ UHGXFHG RU VWLOO KROGLQJRXW RQ WKH SODLQ DQG LQ WKH PRXQWDLQZHVW RIWKH(XSKUDWHVDQG HDVWRIWKH7LJULVDQGLQEHWZHHQ +H UHVSRQGHG WR $EË u$ZQ·V UHTXHVW IRU UHLQIRUFHPHQWV LQ SUHSDUDWLRQ IRU WKH DQWLFLSDWHG FRQIURQWDWLRQ ZLWK 0DUZÀQ ,, DQG ZURWH WR $EË 0XVOLP WR GR WKH VDPH $WWHQGLQJ WR WKH SUHVVLQJ PLOLWDU\ VLWXDWLRQ LQ WKH6DZÀGDQGWKH0LGGOH DQG/RZHU(XSKUDWHV WHUULWRU\KHGHSOR\HG PRVWRIWKHPLOLWDU\IRUFHVDWKLVGLVSRVDOWR:ÀVL0DGÀrLQDQGÈWDQG KHWRRNWKHLQLWLDWLYHRUDFFHSWHGWKHRIIHURI6XI\ÀQLEQ0XuÀZL\DKLEQ $EË 0XVOLP ZURWH@ WR $EË 6DODPDK DO.KDOOÀO >FLWLQJ WKH +RO\ 4XUrÀQ ,, @ ¶:KHQ WKH\ PHHWWKRVHZKREHOLHYHWKH\VD\¶:HEHOLHYH·EXWZKHQWKH\JRSULYLO\WR WKHLU6DWDQVWKH\VD\¶:HDUHZLWK\RX·
,I$EË6DODPDKZDVDK\SRFULWHZKLFKLVPRVWOLNHO\DQXQIDLUVODQGHU KLV IXWLOH HIIRUWV GLG QRW WDNH KLP QHDUO\ DV IDU DV $EË 0XVOLP·V PDQHXYHUV WRRN $EË 0XVOLP $EË 6DODPDK·V RQHPDQ VKRZ LQ .ËIDK ODVWHG IRU RQO\ WKUHH PRQWKV DQG EHQHDWK DOO KLV IRUFHIXO H[HUFLVH RI H[HFXWLYHSRZHUVDQGZKDWDSSHDUHGWREHDFRQWUROOHGVLWXDWLRQLWZDV PDUNHGE\DQH[WUHPHO\IOXLGVWDWHRIDIIDLUV
DEDUÈ,,,S'KDKDEÈ7ÀUÈNKDO,VOÀP9,,,S ,EQu$EG5DEELK,9SS(QJOLVKUHQGHULQJRIWKLV4XUDQ.(;*78*LVWKDWRI
$UEHUU\·V 7ZRDQGDKDOIPRQWKVRQO\DFFRUGLQJWR-DKVKD\ÀUÈS
&+$37(5),9(
7+(u
¯ 2)7+(25*$1,=$7,21 ,$0HWKRGRORJLFDO,QWHUOXGH 2YHU DQG DERYH LWV EHLQJ D GHFLVLYH KLVWRULFDO ODQGPDUN WKH DGYHQW RI WKH .KË7À8À3.>>&- .3 Ë+&- )7&89.(&11> (-&3,*) 9-* -.8947.4,7&5-.(&1 7:1*8 4+ 9-* 5745&,&3)& ,&2* +47 9-* )4(9478 4+ 9-* u ''À8.) 7.&- 7.47949-.8/:3(9:7*24894+>&- *39*7*) ËIDK RQ 0XDUUDP $XJXVW .KDOÈIDK ,, S $]GÈ S 'KDKDEÈ 6L\DU 9, S 'KDKDEÈ 7ÀUÈNK DO,VOÀP 9,,, S RU RQ 0XDUUDP -DKVKD\ÀUÈ S VKDOOEH@VODLQµLILW PXVW EH DFFHSWHG PD\ EH LQWHUSUHWHG DV D PDQLIHVWR RI KLV SROLWLFDO DQDO\VLVRIWKHVLWXDWLRQDQGKLVXQGHUVWDQGLQJRIWKHUHDOFRPSRVLWLRQRI WKH HIIHFWLYH .KXUÀVÀQLDQ EDVH RI WKH 5HYROXWLRQ WRJHWKHU ZLWK LWV WUXH PRWLYHVDQGJRDOV %XW WKH u$EEÀVLG LQWHUSRODWRUV GLG QRW PLVV VXFK D JROGHQ RSSRUWXQLW\ DQG DQ DQLPDWHG GUDPDWLF GLDORJXH ZDV IDEULFDWHG EHWZHHQ -DuIDU DQG u$EG $OOÀK ZKHUH RQO\ -DuIDU·V JHQHDORJLFDO LGHQWLW\ DV DQ u$OÈG LV SUHVHUYHG EXW EH\RQG WKDW KH LV WUDQVIRUPHG LQWR DQ XQZLWWLQJ u$EEÀVLG PRXWKSLHFH FRQILUPLQJ LQ HYHU\ XWWHUDQFH RI KLV WKH u$EEÀVLG FODLPV RI ¶RZQLQJ· WKH 2UJDQL]DWLRQ ZKLOH u$EG $OOÀK LV GHSLFWHG DV D QDLYH JOXWWRQRXV DQG RSSRUWXQLVWLF HQWKXVLDVW D PHDQ GRQNH\ULGHUZKRZRXOGQRWKDYHDQ\TXDOPVDERXWVWHDOLQJWKHIUXLWVRI WKH HIIRUWV RI RWKHUV $EË 6DODPDK·V PHVVHQJHU LQIRUPHG -DuIDU WKDW KH ZDVGLVSDWFKHGE\$EË6DODPDKDQGJDYHKLPWKHOHWWHU -DuIDUVDLG¶:KDWLV>WKHFRQQHFWLRQEHWZHHQ@PHDQG$EË6DODPDK"$EË 6DODPDKLVVRPHRQHHOVH·VSDUWLVDQ6KÈu&-OLJKD\UÈ ·7KHPHVVHQJHUVDLG¶, DP EXW D PHVVHQJHU \RX UHDG KLV OHWWHU DQG DQVZHU KLP DV \RX VHH ILW· >-DuIDUEXUQWWKHOHWWHU@DQGVDLGWRWKHPHVVHQJHU¶,QIRUP\RXUPDVWHURI ZKDW\RXKDYHVHHQ·7KHPHVVHQJHUZHQWWRu$EG$OOÀKLEQDO¼DVDQ DQGJDYHKLPWKHOHWWHUVRKHNLVVHG>RUDFFHSWHGTDEEDODRUTDELOD @LWDQG UHDGLWDQGZDVRYHUMR\HGE\LW2QWKHQH[WGD\u$EG$OOÀKPRXQWHGD GRQNH\ WR WKH KRXVH RI -DuIDU DO¸ÀGLT >-DuIDU@ VDLG ¶2K $EË 0XDPPDG6RPHWKLQJ>RIFRQVHTXHQFHPXVWKDYH@EURXJKW\RX·>u$EG $OOÀK@VDLG¶-DuIDU@VDLG¶:KDW LV LW 2K $EË 0XDPPDG"· >u$EG $OOÀK@ VDLG ¶7KLV LV $EË 6DODPDK·V OHWWHU LQYLWLQJ PH WR ZKDW KH >FRQWUROV@ RXU 6KÈu&- RI WKH SHRSOH RI .KXUÀVÀQKDYH FRPHWRKLP· >-DuIDU@VDLG¶2K$EË0XDPPDG6LQFH ZKHQZHUHWKHSHRSOHRI.KXUÀVÀQSDUWLVDQVRI\RXUVVKÈu&-ODND ":DVLW \RXZKRVHQW$EË0XVOLPWR.KXUÀVÀQ":DVLW\RXZKRRUGHUHGKLPWR GRQEODFN>FORWKHV@"$QGWKRVHZKRFDPHWR,UDTZDVLW\RXZKRZDVWKH UHDVRQ WKH\ FDPH RU ZKR VHQW IRU WKHP" $QG GR \RX NQRZ DQ\RQH RI WKHP"· u$EG $OOÀK LEQ DO¼DVDQ DUJXHG ZLWK KLP XQWLO KH VDLG ¶,QGHHG WKH>5HYROXWLRQDULHV@ZDQWP\VRQ0XDPPDGEHFDXVHKHLVWKHPDKGÈRI
-DKVKD\ÀUÈS
&+$37(5),9(
WKLV QDWLRQ· -DuIDU VDLG XQWR KLP ¶%\ *RG KH LV QRW WKH PDKGÈ RI WKLV QDWLRQ DQG LI KH GUDZV KLV VZRUG KH VKDOO EH VODLQ· u$EG $OOÀK DUJXHG ZLWK KLP XQWLO KH VDLG ¶%\ *RG QRWKLQJ EXW HQY\ SUHYHQWV \RX IURP >DGPLWWLQJ@WKDW·>-DuIDU@VDLG¶%\*RGWKLVLVEXWVLQFHUHDGYLFHIURPPH WR \RX $EË 6DODPDK KDV ZULWWHQ WR PH ZLWK >DQ LQYLWDWLRQ@ VLPLODU WR ZKDWKHKDVZULWWHQWR\RXEXWKLVPHVVHQJHUGLGQRWILQGZLWKPHZKDW KH IRXQG ZLWK \RX DQG , EXUQW KLV OHWWHU EHIRUH UHDGLQJ LW· u$EG u$OOÀK OHIW -DuIDU·V SODFH LQ DQJHU $EË 6DODPDK·V PHVVHQJHU GLG QRW UHDFK KLP XQWLODO6DIIÀKDGEHHQSURFODLPHG
7KH ODVW VWDWHPHQW LV SHUKDSV RQH RI WKH WUXHVW LQ WKH DERYH DFFRXQW &RQVXOWDWLRQV OHG E\ $EË 6DODPDK EXW FRQFHLYDEO\ PXFK ZLGHU WKDQ UHSRUWHG DQG DLPHG DW LPSOHPHQWLQJ WKH GRFWULQH RI DOULÉÀ ZHUH DERUWHG ,EQ DOLTLTÀ ZKHWKHU RU QRW KH LQWHQGHG LW IRUPXODWHV WKH HYHQWXDORXWFRPHLQDQREOLTXHO\FXUW VWDWHPHQWDEOHQGRI WKHSDVVLYH YRLFH DQG D QR OHVV DPELJXRXV DFWLYH YRLFH VHQWHQFH ZKHUH WKH DFWLRQ DQG WKH DJHQW RI WKH DFWLRQ UHTXLUH IXUWKHU GHILQLWLRQ ´WKXPPD JKXOLED $EË 6DODPDK uDOÀ UDr\LK ZDuDPDODW DOGDuZDK uDPDODKÀ ZDEË\LuD DO6DIIÀ WKHQ $EË 6DODPDK ZDV SUHYDLOHG RYHU LQ KLV YLHZ DQG WKH GDuZDK SHUIRUPHG >RU SHUSHWUDWHG@ LWV DFW DQG KRPDJH ZDV SDLG WR DO 6DIIÀ µ:KDWWKH¶DFW·H[DFWO\ZDVDQGZKDWIRUFHVZLWKLQWKHGDuZDK EURXJKW DERXW WKLV RXWFRPH ,EQ DOLTLTÀ GRHV QRW VD\ EXW RWKHU VRXUFHVGR ,,,7KHu$EEÀVLG&RXS ,,,7KH8QIROGLQJRIWKH'UDPD$FFRUGLQJWRWKHu$EEÀVLG5LZÀ\DK 7KH RXWOLQH RI WKH SORW LV VLPSOH DQG YHU\ QDLYH 7KH JHQHUDOV DFFLGHQWDOO\IRXQGRXW$EËDOu$EEÀV·¶GHWHQWLRQ·SODFHDQGLPPHGLDWHO\ SDLG KRPDJH WR KLP DQG SURFODLPHG KLV DFFHVVLRQ %XW WKH GHWDLOV DQG WKH GUDPD ZLWK LWV YDULDWLRQV DQG SHUVRQDJHV DUH LQWHQVHO\ LQWHUHVWLQJ DQGVLJQLILFDQW 7KH ILYH PDMRU SOD\HUV DUH WZR PDZOÀV IURP $EË DOu$EEÀV· HQWRXUDJH DQG WKUHH JHQHUDOV IURP WKH .KXUÀVÀQL\\DK ZKR ZHUH HQFDPSHG ZLWK $EË 6DODPDK DW ¼DPPÀP $u\DQ RQ WKH RXWVNLUWV RI .ËIDK 7KH\ DUH LQ RUGHU RI DSSHDUDQFH $EË ¼XPD\G 0XDPPDG LEQ ,EUÀKÈP DO¼LP\DUÈ DO0DUZUËGKÈ DOËVÈ DO6DPDUTDQGÈ QR
0DVuËGÈ ,9 SS FI À7ÈLGHQWLILHVKLPDVD,-:1À2 D VODYH ZKRPWKH\LHWKHSHRSOHRI-:7À8À3 KDGJLYHQWR'7À-ÈP DO2À2DVDJLIW$EËDO-DKPDPDZOÀRI À-.1&-ZDV$EË0XVOLP·V PDQ DQG KLV VS\ RQ 4DDEDK DOO WKURXJK KLV FDPSDLJQ DQG LQ WKH u ''À8.) FRXUW XQWLO $EË &u+&7 UHSRUWHGO\ NLOOHG KLP '7À-ÈP LEQ 6DODPDKZDVDPDZOÀDQGDOLDLVRQEHWZHHQ¼XPD\PDKZKHUHKHZDV DVVLJQHG WR UHVLGH DQG WKH Ë+&3 2UJDQL]DWLRQ Ë8À ZDV WKH KLJKHVW UDQNLQJJHQHUDOLQWKHGUDPDDQHWKQLF$UDEDQGRQHRIWKHWZHOYHQDT ÈEV+LVVSHFLILFLGHRORJLFDOLGHQWLW\ZLWKLQWKHFRDOLWLRQLIQRWODFNLQJLV YHU\ GLIILFXOW WR DVFHUWDLQ DQG KLV SROLWLFDO OR\DOWLHV ZHUH DOZD\V EODQG +H DSSHDUV WR KDYH EHHQ ZLOOLQJ WR XQTXHVWLRQLQJO\ OHQG KLV GLVWLQJXLVKHG VHUYLFHV DQG FHOHEUDWHG YHWHUDQ VWDWXV WR WKH SDUW\ ZLWKLQ WKH2UJDQL]DWLRQZKRKDGWKHXSSHUKDQGRUWKHHVWDEOLVKHGOHJLWLPDF\ ,W PXVW EH UHPHPEHUHG WKDW ZKHQ $EË 6DODPDK WZR RU WKUHH PRQWKV EHIRUH WKLV HSLVRGH KDG DVNHG $EË 0XVOLP WR VHQG PLOLWDU\ VXSSRUW WR $EË u$ZQ Ë8À ZDV DW 5D\\ ZLWK KLV IRUFHV $EË 0XVOLP RUGHUHG 0ËVÀ WR GLVSDWFK KLV VRQ WR $EË u$ZQ DQG KLPVHOI WR UHSRUW WR $EË 0XVOLP DW KLV 0DUZ KHDGTXDUWHUV 1RZ GXULQJ WKHVH HYHQWV KH ZDV DWWKHPLOLWDU\FDPSRI¼DPPÀP$u\DQLQ.ËIDK 2QH GD\ $EË ¼XPD\G OHIW WKH FDPS WR WKH FLW\ RU VSHFLILFDOO\ WR :3À8&-%\PHUHFKDQFHKHFDPHDFURVVD,-:1À2RIWKHu ''À8.)8·
$NKEÀUSSDEDUÈ,,,SS &1À)-:7È$QVÀEDO$VKUÀI,,,SS $]GÈS&8uË)È,9SS$JKD¶$JHQWV·SS -DKVKD\ÀUÈSS $NKEÀUS DEDUÈ,,,S&8uË)È,9SS-DKVKD\ÀUÈS
&+$37(5),9( QRQH RWKHU WKDQ 6ÀELT DQG D VXFNOLQJEURWKHU RI $EË DOu ''À8· QDPHO\ ¸ÀOL LEQ DO+D\WKDP RQH RI WKHLU PDZÀOÈ ZKR KDG OHIW ¼XPD\PDKZLWKWKHP$E˼XPD\GUHFRJQL]HGWKHPEHFDXVHKHXVHG WR YLVLW WKH ,PÀP RU KH UHFRJQL]HG À'.6 EHFDXVH KH ZDV D VODYH WKH\ KDG JLYHQ DV D JLIW WR WKH 2À2 +H HQTXLUHG DERXW WKH u ''À8.) KRXVHKROG $EË ¼XPD\G DQG E\ H[WHQVLRQ WKH HQWLUH -:7À8À3.>>&- KDG HLWKHU NQRZQ RI '7À-ÈP·V GHPLVH LQ ZKLFK FDVH KLV HQTXLU\ ZDV DERXW$EËDOu ''À8DOLDV,EQDO¼ÀULWKL\\DKRUKHKDGQRWLQZKLFK FDVH KLV HQTXLU\ ZDV DERXW '7À-ÈP KLPVHOI DQG $EË ¼XPD\G RQO\ WKHQ OHDUQHG RI ,EUÀKÈP·V VOD\LQJ DQG WKH VXFFHVVLRQ RI $EË DOu ''À8 WR WKH 2À2&9* 7KH GHVFULSWLRQ RI WKH HQFRXQWHU UDQJHV IURP WKH V\QRSWLF VWDWHPHQWV RI DO$&u6Ë'È 0DGÀrLQÈ $]GÈ DQG DO-DKVKD\ÀUÈ WR WKH PRUHGHWDLOHG UHFRXQWLQJVRI%DOÀGKXUÈDQGDEDUÈ DQGFXOPLQDWHV ZLWKWKHYLYLGGUDPDWL]DWLRQRIDO0DVuËGÈ >$EX ¼XPD\G@ DVNHG >6ÀELT@ DERXW ,EUÀKÈP DO,PÀP >6ÀELT@ VDLG ¶0DUZDQ >,,@ NLOOHG KLP LQ SULVRQ· 0DUZÀQ DW WKH WLPH KDG EHHQ LQ ¼DUUÀQ$E˼XPD\GVDLG¶,QZKRVHIDYRULVWKHZD¿L\\DK"·>6ÀELT@VDLG ¶+LV EURWKHU $EË DOu$EEÀV· >$EË ¼XPD\G@ VDLG ¶$QG ZKHUH LV KH"· >6ÀELT@VDLG ¶:LWK \RXLQ.ËIDKKHDQGKLV EURWKHUDQGDJURXSRIKLV XQFOHVDQGPHPEHUVRIKLVIDPLO\·>$E˼XPD\G@VDLG¶6LQFHZKHQKDYH WKH\EHHQKHUH"·6ÀELTVDLG¶6LQFHWZRPRQWKV·
,Q WKH PHDQWLPH $EË DOu$EEÀV KDG GLVSDWFKHG ,EUÀKÈP LEQ 6DODPDK WR WKH PLOLWDU\ FDPS ZLWK D PHVVDJH ,EUÀKÈP HQWHUHG WKH FDPS LQ GLVJXLVH DQG ZHQW GLUHFWO\ WR QRQH RWKHU WKDQ $EË DO-DKP +H ILUVW DVNHG KLP IRU D SURPLVH RI VHFXULW\ ZKLFK ZDV JUDQWHG 7KHQ KH WROG $EË DO-DKP WKDW KH ZDV $EË DOu$EEÀV· PHVVHQJHU KH WROG KLP RI WKH u$EEÀVLGWURRSDQGWKHLUORFDWLRQDQGWKDW$EËDOu$EEÀVKDGVHQWKLP WR $EË 6DODPDK DVNLQJ IRU D KXQGUHG GÈQÀUV WR SD\ WKH FDPHOGULYHU ZKR KDG EURXJKW WKHP WR .ËIDK DQG WKDW $EË 6DODPDK KDG QRW VHQW WKHPRQH\,EUÀKÈPLEQ6DODPDKZRXOGQRZVWD\LQWKHFDPSWRMRLQ WKHQH[WVWDJHRIWKHDFWLRQRUDFFRUGLQJWR0DGÀrLQÈKHZRXOGDWWKDW VWDJHPDNHKLVILUVWDSSHDUDQFHLQWKLVHSLVRGH
$EË 6DODPDK@ DVVXPHG WKH SRVW RI >DO 6DIIÀ·V@ ZD]ÈU ZKLOH >RQH RU WKH RWKHU RU ERWK RI WKHP PXWXDOO\@ VHFUHWHG LQ WKH KHDUW D JUXGJH ZD]DUD ODKX ZDIÈ DOQDIV VKD\r µ 7KH OLNHOLKRRGLV WKDWERWKPHQKDGDJUXGJHDJDLQVWRQHDQRWKHUEXWHDFK KDG WR VZDOORZ KLV JULHYDQFH $Q HTXLOLEULXP RI VRUWV VWLOO JRYHUQHG WKH VLWXDWLRQ VR PXFK VR WKDW WKH WDFWLFDO PRYH RI DO6DIIÀ WR WKH PLOLWDU\ FDPS GLG QRW GLVORGJH $EË 6DODPDK IURP WKH GLVWLQJXLVKHG TXDUWHUV RI FRPPDQG,QDIXUWKHUVKRZRIKDUPRQ\WKH\VKDUHGWKHTXDUWHUV 7KXV$EË6DODPDK·VDVVXPSWLRQRIWKHSRVWRIZD]ÈUDO6DIIÀZDVRQ WKH VXUIDFH D TXDOLILHG FRQWLQXDWLRQ E\ LQHUWLD RI KLV UDWKHU DEVROXWH GHVLJQDWLRQ DV ZD]ÈU ¯O 0XDPPDG DQG DSSDUHQWO\ WKH ROG WLWOH ZDV PDLQWDLQHG $OWKRXJK ZH SRVVHVV QR ¶MRE GHVFULSWLRQ·RI $EË6DODPDK·V RIILFHDIWHUDO6DIIÀ·VDFFHVVLRQKLVSUHYLRXVDOPRVWDEVROXWHDXWKRULW\ LV QRW OLNHO\ WR KDYH EHHQ UHWDLQHG ,EQ $uWKDP·V DFFRXQW RI DQ LQFRQVLGHUDWHDQGW\UDQQLFDO$EË6DODPDKFDQQRWEHHQWHUWDLQHG7KH PLOLWDU\ FRXS OHDGHUV PXVW KDYH DFTXLUHG RQ EHKDOI RI $EË 0XVOLP FRQVLGHUDEOH GH IDFWR SRZHUV %XW QR RIILFLDO GLVWULEXWLRQ RI MXULVGLFWLRQ ZDV\HW SRVVLEOHLQWKHFRQWH[WRI WKH VLWXDWLRQZKLFKZDVVWLOOLQDVWDWH RIIOX[
'ÈQDZDUÈS $]GÈ S -DKVKD\ÀUÈ S 0DVuËGÈ ,9 S ,EQ .KDOOLNÀQ ,, S
'KDKDEÈ6L\DU9,SS'KDKDEÈ7ÀUÈNKDO,VOÀP9,,,S %DOÀGKXUÈ$QVÀEDO$VKUÀI,,,S 'KDKDEÈ 6L\DU 9, S FI 0DVuËGÈ ,9 S ,EQ .KDOOLNÀQ ,, S 'KDKDEÈ7ÀUÈNKDO,VOÀP9,,,S DEDUÈ,,,S$]GÈS0DVuËGÈ,9S ,EQ$uWKDP9,,SS
7+(u$%%¯6,'&283
2Q WKH VXUIDFH D FRPSOH[ WULSDUWLWH HTXDWLRQ RI SRZHU VKDULQJ DSSHDUVWRKDYHHPHUJHG,QUHDOLW\LWZDVQRWVRFRPSOH[ 7KH ILUVW HOHPHQW RI WKH HTXDWLRQ ZDV $EË 0XVOLP DQG KLV SURWpJpV LQ.ËIDK,Q.KXUÀVÀQDQGWKHUHVWRIWKH3HUVLDQWHUULWRULHVKHHQMR\HG XQFRQWHVWHG DEVROXWH PDVWHU\ +LV PHQ LQ .ËIDK ZHUH DFTXLULQJ ZKDW SRZHUV WKH\ FRXOG UHDGLO\ DQG JUDGXDOO\ DPDVV IURP WKH GLVLQWHJUDWLQJ GRPDLQRI$EË6DODPDK 7KH VHFRQG HOHPHQW WKH RVWHQVLEO\ VWLOO XQYLRODWHG KLVWRULFDO 5HYROXWLRQDU\ OHJLWLPDF\ UHSUHVHQWHG E\ $EË 6DODPDK KDG GHILQLWHO\ ORVWWKHEDWWOH,WZRXOGRQO\EHDPDWWHURIIHZPRQWKVEHIRUHWKHUHVXOWV RIWKHVLOHQWEDWWOHZRXOGEHSK\VLFDOO\WUDQVODWHGLQWRVSLOOHGEORRG 7KH WKLUG HOHPHQW ZDV WKH KLWKHUWR XQNQRZQ TXDQWXP RI WKH QHZ UR\DO IDPLO\ 3RWHQWLDOO\ WKH\ ZHUH WKH JHUP RI WKH IXWXUH DQWLWKHVLV ZKLFK ZLOO HPHUJH LQ WKH GLDOHFWLFV RI WKH VWUXJJOH IRU VXSUHPH SRZHU %XW WKDW VWLOO UHTXLUHG \HDUV RI ¶IHUPHQWDWLRQ· EHIRUH WKH VKDWWHUHG 8PD\\DG LQVWUXPHQWV RI SRZHU DQG WKH OHDGHUOHVV QRQ$EË 0XVOLPLWH HOHPHQWV RI WKH .KXUÀVÀQL\\DK ZRXOG UHJURXS DQG FU\VWDOOL]H LQWR D FRQVWHOODWLRQ WKDW ZRXOG SURYLGH D YLDEOH LQGHSHQGHQW SRZHU EDVH )RU WKHWLPHEHLQJWKHQHZG\QDVW\KDGWRFRQWHQWLWVHOIZLWKWKHDWWDLQDEOH VSRLOV EXW RQO\ LQ ,UDT DQG VKRUWO\ ODWHU LQ RWKHU ZHVWHUQ SDUWV RI WKH HPSLUH7KHRQO\DWWULEXWHVRIVRYHUHLJQW\$EËDOu$EEÀVFRXOGH[HUFLVH ZHUH VRPH DGPLQLVWUDWLYH DQG PLOLWDU\ DSSRLQWPHQWV ZKLFK KH JDYH WR IDPLO\ PHPEHUV RYHUULGLQJ RU VXSHUVHGLQJ VRPH RI $EË 6DODPDK·V HDUOLHUDSSRLQWPHQWV :KHQ $EË DOu$EEÀV LQVWHDG RI H[SHFWLQJ RU HYHQ GHPDQGLQJ $EË 0XVOLP·V DSSHDUDQFH LQ KLV FRXUW WR SD\ KLP KRPDJH VHQW KLP KLV EURWKHU $EË -DuIDU WR UHFHLYH WKDW KRPDJH RQ KLV EHKDOI DW $EË 0XVOLP·V FRQYHQLHQFH WKH ODWWHU WUHDWHG $EË -DuIDU ZLWK H[WUHPH GLVUHVSHFW :KHQ $EË -DuIDU FRPSODLQHG WR WKH FDOLSK WKLV ODWWHU KHOSOHVVO\ VDLG ´:KDW FDQ EH GRQH DERXW KLP" ZKDW@ KLV VWDWXV >XVHG WR EH@ ZLWK WKH ,PÀP >LH 0XDPPDG LEQ u$OÈ@ DQG ZLWK ,EUÀKÈP>)XUWKHUPRUH@KHLVWKHIRXQGHURIWKHUHDOPDQGLWVVXSSRUW ¿ÀLE DOGDZODK ZD DOTÀrLP ELrDPULKÀ µ 6R PXFK IRU WKH SV\FKRORJLFDO G\QDPLFV RI WKH UHODWLRQVKLS %XW ZKHQ $EË DOu$EEÀV GDUHG WR WUDQVJUHVV EH\RQG KLV OLPLWV LQWR $EË 0XVOLP·V 3HUVLDQ WHUULWRULHV KLV DSSRLQWHH WR )DUV KLV XQFOH u,VÀ LEQ u$OÈ ZDV SUHYHQWHG IURP DVVXPLQJ KLVRIILFH
%DOÀGKXUÈ$QVÀEDO$VKUÀI,,,SDEDUÈ,,,S$]GÈSS$EË 0XVOLP@VDLG¶'LG$EË6DODPDKGRLW"·$EË-DuIDUVDLG¶7KH\@ VXSSRUW WKH FRQFOXVLRQV RI UHFHQW LQYHVWLJDWRUV RI WKH $EEDVLG UHYROXWLRQ ZKR KDYH VHHQ LW DV SULPDULO\ DQ $UDE PRYHPHQW GHVSLWH LWV RULJLQ LQ HDVWHUQ ,UDQ 7KH HDUOLHU LGHD WKDW LW UHSUHVHQWV D PDVVLYH LQWUXVLRQRI,UDQLDQLQIOXHQFHLQWR0XVOLPSROLWLFVLVLPSRVVLEOHWRVXVWDLQ ZKHQ LW LV UHDOL]HG WKDW WKH SRSXODWLRQ RI ,UDQ ZDV RQO\ DERXW SHUFHQW 0XVOLPLQZKHQWKH$EEDVLGVFDPHWRSRZHU
7KH FRQFHSW RI WU\LQJ WR TXDQWLI\ WKH DYDLODEOH KLVWRULFDO GDWD LV E\ LWVHOI D WKULOOLQJ QRYHOW\ LQ KLVWRULFDO ,VODPLF VWXGLHV +RZHYHU IRU FRPSOH[ PHWKRGRORJLFDO UHDVRQV ZKLFK , GLVFXVVHG HOVHZKHUH %XOOLHW·V PHWKRGRORJ\ GRHV QRW KROG LWV RZQ KLV VWDWLVWLFDO UHVXOWV FDQQRW EH DFFHSWHGDQGKLVVWDWHPHQWWKDWKLVUHVXOWVVXSSRUW6KDEDQ·VFRQFOXVLRQV LVDVEDVHOHVVDV6KDEDQ·V ,,&RQYHUVLRQ6FRSH3DWWHUQVDQG,QVWDQFHV ,,(DUO\&RQYHUVLRQ $OPRVW IURP WKH LQFHSWLRQ RI WKHLU FRQWDFW ZLWK WKH $UDE 0XVOLP FRQTXHURUV FRQYHUVLRQ WR ,VODP KDG QRW EHHQ H[DFWO\ D WDERR IRU WKH ,UDQLDQV $OPRVW LQVWDQWDQHRXV FRQYHUVLRQ RFFXUUHG DQG ,UDQLDQ FRQYHUWV KDG WKHLU SODFH LQ u8PDU LEQ DO.KDÀE·V DUUDQJHPHQWV XSRQ WKHLQVWLWXWLRQRIWKH)È,VODP@DSSDUHQWO\LQJUHDW QXPEHUV·u$EEÀVLG5HYROXWLRQS %XOOLHW&RQYHUVLRQSS,QIRRWQRWHQR%XOOLHWUHIHUVWR6KDEDQDVWKH¶UHFHQW LQYHVWLJDWRUV· ,QGHHGWKHFUHGLWLVGXHWR%XOOLHWIRUWKHYHU\LGHDRIDWWHPSWLQJWKLVDSSURDFKLQ SDUWWKUHHRIWKLVERRNDOEHLWGLIIHUHQWO\ $JKD¶$JHQWV·SS DEDUÈ,S%DOÀGKXUÈ)XWËSS$EËu8ED\GS %DOÀGKXUÈ)XWËS
&219(56,21,17+(3529,1&(
>KDYLQJ@ WR SD\ WKH ML]\DK SROO WD[ DQG SURFODLPHG ,VODPµ DQG WKH\ FDPH WR EH NQRZQ DV ¼&27Àr 'D\ODP 7KRVH NQRZQ DV WKH ¿'&-À3.>>Ë3´ZHUHSHRSOHZKRKDGFRQYHUWHGWR,VODPDQGPLJUDWHGWR
&¿7&-µ ,Q WKH 8À9-VRQV RI :'&- ZHUH 2&WKHSOHGJH@
7KH IDFW WKDW WKH\ KDG WKHLU RZQ ERG\JXDUGV 8-À0.7.>>&- ZRXOG SUREDEO\VXJJHVWWKDWWKH\FDPHIURPDSULQFHO\G\QDVW\%XWDERYHDOO LWLVWKHLUDELOLW\WR IRUJH KXJHFRDOLWLRQV RIJHRSROLWLFDOSURSRUWLRQVDQG EHWZHHQXQOLNHO\SDUWLHVWKDWWHVWLILHVWRWKHLUUHDOSROLWLFDOKHIW
SS 1RWKLQJLVUHSRUWHGRIKLVIRUWXQHVWKHUHDIWHU7KLVLVQRWFRPPHQVXUDWH ZLWK WKH OHJDF\ DQG WKH FRQVWLWXHQF\ KH UHSUHVHQWHG ZLWK KLV HDUO\ VXEVFULSWLRQ WR WKH 2UJDQL]DWLRQS ZLWKKLVSURPLQHQWUROHVLQWKH¶JHQHUDODVVHPEO\·S DQGLQ WKH ¶VWDII PHHWLQJ· ZKLFK GHFLGHG ZKHUH WR SURFODLP WKH 5HYROXWLRQ S DQG ZLWK KLVDOPRVWVLQJOHKDQGHGOHDGHUVKLSLQGHOLYHULQJWKHHQWLUHWHUULWRU\EH\RQGWKH2[XVS %ODQNLQVKLS¶DOu$UDEIÈ.KXUÀVÀQ·S $ IDLOLQJ ZKLFK LV XQGHUVWDQGDEOH EHIRUH WKH GLVFRYHU\ RI WKH $NKEÀU PDQXVFULSW DQGLWVHYHQWXDOSXEOLFDWLRQLQ :HOOKDXVHQH[FOXGHVLWIURPSDUWLFLSDWLRQS*LEEHYHQSXWVWKHUHJLRQLQWKH ¶8PD\\DG FDPS &RQTXHVWV S (YHQ 'DQLHO ZKR UHFRJQL]HV D PDVV ULVLQJ RI VRUWV DOVRGHFODUHV7UDQVR[DQLDWKHPRVW¶RSHQO\DQGDFWLYHO\SUR8PD\\DG·.KXUDVDQS FIS DEDUÈ ,, S FI %DUWKROG 7XUNHVWDQ S 6KDEDQ u$EEÀVLG 5HYROXWLRQ S DEDUÈ ,, S FI %DUWKROG 7XUNHVWDQ S 6KDEDQ u$EEÀVLG 5HYROXWLRQ S :KHQ WKH EURWKHUV IHOO RXW ZLWK WKH JRYHUQRU RI .KXUÀVÀQ DO0XKDOODE LQ WKH\ MRLQHG WKH $UDE LQVXUJHQW 0ËVÀ LEQ u$EG $OOÀK LEQ .KÀ]LP LQ KLV VWURQJKROG LQ 7LUPLGK DEDUÈ ,, S :KHQ LQ WKH QHZ JRYHUQRU HPEUDFH@ ,VODPµ :KHQ RXW RI ILVFDO FRQVLGHUDWLRQV KLV JRYHUQRU LQ -:7À8À3
GXW\RQWKHLUWUDGHVWLOOIXUWKHUWR$EËu8ED\GSSII &OHDUO\WKHLQWHUHVWRI WKH 4XEDK EURWKHUV DQG RI WKRVH ZKRP WKH\ UHSUHVHQWHG ZDV LQ FRQYHUVLRQ UDWKHU WKDQLQH[SRVLQJWKHODQGWRFRQTXHVWRUWRXQIDYRUDEOHWUHDWLHV 1DUVKDNKÈ)U\HSS1DUVKDNKÈSS %DOÀGKXUÈ)XWËS DEDUÈ,,S
&219(56,21,17+(3529,1&(
VRXQGHG KLP RXW RQ WHVWLQJ WKH FRQYHUWV IRU FLUFXPFLVLRQ u 2&7 ,, UHSOLHGZLWKKLVIDPRXVVWDWHPHQW´*RGKDVVHQW0:&22&)3EXK WRSUHDFKQRWWRFLUFXPFLVHµ u 2&7 ,,·V H[SHULPHQW GLG QRW VXUYLYH WKH SDVVLQJ RI KLV VKRUW UHLJQ $SRVWDVLHVVRRQRFFXUUHGDVZHVHHIURPWKH6XJKGLDQLQVXUJHQFLHVWKDW RFFXS\ &'&7È·V FKURQLFOHV RI WKH IROORZLQJ \HDUV :HOOKDXVHQ DUWLFXODWHG WKH FRQYHUVLRQDSRVWDV\GLPHQVLRQ RIWKHLQVXUJHQFLHVRIWKH 6XJKGLDQV ZKR KH VD\V ´PHUHO\ EHFDXVH RI WKH PDWHULDO DGYDQWDJHV KDG HPEUDFHG ,VODP 7KHUH LV QR GRXEW WKDW WKH\ IRUWKZLWK GHIHFWHG IURP,VODPµ ,QWKHQHZJRYHUQRU$VKUDVLEQu ') 11À-DO:1&2È WRRNWKHLQLWLDWLYHRIVXPPRQLQJWKH6XJKGLDQVWRFRQYHUWWR,VODP+H FRPPLVVLRQHGIRUWKHDPELWLRXVRSHUDWLRQ 'Ë&1¸&>)Àr¸À1..'3&7È+ 47:7&>+ D2&)Àr $VKUDV· GHOHJDWH SUHDFKHU WR 7UDQVR[DQLD LQ KDG FRPSODLQHG LQ WR u 2&7 ,, ´7ZHQW\ WKRXVDQG RI WKH 2&À3DO&'&ÈDQGZKRHQMR\HGIXOOPHPEHUVKLSLQ WKH)ÈÀ' %DONK Ë?/À3 À1&6À3 DQG 0DUZ DOË)- LQ /RZHU :0-À7.89À3 DQG DUULYHG DW 0DUZ ZLWK VL[W\ WKRXVDQG PHQ :LWK KLP ZHUH VRPH KRUVHPHQ RI WKH $]G DQG &2È2 DQG WKH ).-6À38 DQG SULQFHV RI Ë?/À3 À7>À' À1&6À3 0DUZ ¶DQG WKHLU OLNHV· 7KH SRHW DO.XPD\W DO 8&)È HYHQ SXW WKH QXPEHU RI WKH UHEHOV DW VHYHQW\ WKRXVDQG´+&0&>+&9- LEQ 4:'&K *LEE UHFRJQL]HV WKH VWUHQJWK RI WKH ´-Èu.9* DQG u ''À8.) SURSDJDQGDµ GXULQJ $VDG·V ILUVW WHUP DQG FRQWHQGV WKDW LW ´IRXQG D IHUWLOH ILHOG DPRQJ WKH 0XVOLP FRQYHUWV LQ -:7À8À3 DQG /RZHU :0-À7.89À3µ *LEE·V H[FOXVLRQ RI 7UDQVR[DQLD LV QRW ZDUUDQWHG :KHQ $VKUDV VXFFHHGHG $VDG LQ KH PXVW KDYH HQFRXQWHUHG WKLV VLWXDWLRQ ZKLFK GXULQJ $VDG·V WHUP KDG EHHQ ´DFWLYHO\ FRPEDWHG E\ WKH DGPLQLVWUDWLRQµ $VKUDVSUREDEO\GHFLGHGRQDGLIIHUHQWFRXUVHRIDFWLRQ³FRPSHWLQJIRU WKH SRWHQWLDO FRQYHUWV HVSHFLDOO\ LQ 7UDQVR[DQLD $QG ZKDW EHWWHU ZD\ WRFRXQWHU WKH OHWKDO2UJDQL]DWLRQWKDQ HQOLVWLQJWKHFRRSHUDWLRQ RIWKH VWLOO EHQLJQ FRPSHWLWRU +LV FKRLFH RI WKH 0XUMLrLWH $EË &1¸&>)Àr FRXOG QRWKDYHEHHQDQDFFLGHQW 7KH JHQHVLV DQG HDUO\ HYROXWLRQ DQG UDPLILFDWLRQV RI ,UMÀr DV D GRFWULQH DQG RI WKH 0XUMLrDK DV D UHOLJLRSROLWLFDO PRYHPHQW WKRXJK SHUWLQHQW QHHG QRW GHWDLQ XV KHUH 6XIILFH LV WR QRWH WKDW LW ZDV LQ .KXUÀVÀQ DQG 7UDQVR[DQLD RI WKH 8PD\\DG HUD WKDW WKH 0XUMLrDK
DEDUÈ,,S *LEE&RQTXHVWVS ,ELG$VDGZDVYHU\VWULFWLQFRPEDWLQJWKH2UJDQL]DWLRQGXULQJKLVWZRWHUPVKH
NLOOHGDQGSHUVHFXWHGDQXPEHURILWVDFWLYLVWVVHHDEDUÈ,,SS )RU WKHVH DVSHFWV RI WKH 0XUMLrDK LQ WKH 8PD\\DG SHULRG DQG IRU IXOO VXEVWDQWLDWLRQRIPXFKRIWKHIROORZLQJVHH$JKD¶0XUMLrD·
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ÈPÀQ IDLWK RU EHOLHI DQG WKH SHFXOLDU UHJUHVVLYH UHODWLRQ ZKLFK WKHLU G\QDPLF WKHRORJ\ SURJUHVVLYHO\ HVWDEOLVKHG EHWZHHQ ÈPÀQ DQG uDPDO ZRUNV SUDFWLFH LH IXOILOOLQJ WKH SUHFHSWV RI ,VODP IDLOLQJ WR GR VR DQGRU FRPPLWWLQJ DQ\ VLQ VKRUW RI SRO\WKHLVP )RU UXGLPHQWDU\ DQG SUHRUJDQL]HG ,UMÀr WKH LVVXH ZDV VLPSOH DQG UHVWULFWHG WR WKH GHEDWH RYHU WKH HVFKDWRORJLFDO VWDWXV RI VLQQHU UXOHUV³ZKHWKHU WKHLU VLQV SDUDPRXQW DPRQJVW ZKLFK LV MDZU RSSUHVVLRQ GLVTXDOLI\ WKHP DV PXrPLQËQ EHOLHYHUV $ YHU\ VWURQJ KLQW RI VHULRXV GLVHQJDJHPHQW EHWZHHQÈPÀQDQGuDPDOZDVODWHQWLQWKHSRVLWLRQVZKLFKVRPH0XUMLrLWHV WRRNDWWKLVILUVWSKDVHRIWKHHYROXWLRQRI0XUMLrLVP%XWWKHLVVXHZDV VWLOO RQH RI WKH (VWDEOLVKPHQW UHIOHFWLQJ ´RQ WKH VWDWXV RI WKH « UXOHUV QRW WKH RUGLQDU\ « 0XVOLPV >DQG LW ZDV LQWHQGHG@ WR GLVHQJDJH WKH TXHVWLRQRIWKHFRQGXFWRIWKHUXOHUVIURPWKHGXW\RIREHGLHQFHWRWKHP XQGHU WKH PDQGDWH RI SUHVHUYLQJ WKH MDPÀuDµ ,W ZDV VWLOO DQ ¶DULVWRFUDWLF·LVVXH ,W ZDV ZLWK WKH HYROXWLRQ RI WKH 0XUMLrDK LQWR WKH QH[W VWDJH RI WKHLU KLVWRU\³DV DQ RUJDQL]HG PRYHPHQW SULPDULO\ DV DJHQWV RI FRQYHUVLRQ³WKDW WKH LVVXH ZDV ¶GHPRFUDWL]HG· 7KHRORJ\³PRUH DFFXUDWHO\ WKHRORJL]LQJ³ZHQW KDQG LQ KDQG ZLWK SROLWLFDO DFWLYLVP
7KH\ SURGXFHG DOO NLQGV RI KDLUVSOLWWLQJ GHILQLWLRQV WKDW LQIHVW WKH ZRUNV RI WKH KHUHVLRJUDSKHUV 6KDKUDVWÀQÈ , SS DFFRXQWV IRU ILYH VXEGLYLVLRQV RI ZKDW KH FDOOV WKH SXUH 0XUMLrDK %DJKGÀGÈ DFFRXQWV DOVR IRU ILYH VXEGLYLVLRQV IRXU RI ZKLFK RYHUODSZLWKIRXURI6KDUDVWÀQÈ·V)LUDTSS $VKuDUÈFODVVLILHGWKHPLQDFFRUGDQFH ZLWK WKHLU YLHZV RQ WZHQW\ LVVXHV RQ WKH GHILQLWLRQ RI ÈPÀQ WKH\ EUDQFK LQWR WZHOYH GLIIHUHQW VXEGLYLVLRQV RQ WKH GHILQLWLRQ RI NXIU LQWR VHYHQ GLIIHUHQW VXEGLYLVLRQV , SS ,EQ¼D]PVLPSOLILHVWKHPD]HDQGFODVVLILHVWKHPLQWRWKUHHVXEGLYLVLRQV)L¿DO ,,SS,,,SS 7KHPDMRUFULWHULDRIGLVWLQFWLRQDUHPLQXWHGLIIHUHQFHVLQ WKHLUGHILQLWLRQRI ÈPÀQDQG NXIU EXWWKH\ DOODJUHHDFFRUGLQJ WRDOOKHUHVLRJUDSKHUVRQ WKHH[FOXVLRQRIZRUNVIURPWKHGHILQLWLRQRIÈPÀQ0RVWRIWKLVKDLUVSOLWWLQJEHORQJVWRD SHULRGRXWVLGHWKHWLPHIUDPHRIRXUGLVFXVVLRQ 6HH u$ZQ LEQ u$EG $OODK·V YHUVHV LQ -ÀLÍ %D\ÀQ , SS ,EQ 4XWD\EDK 0DuÀULI SS *ROG]LKHU0XVOLP 6WXGLHV S DQGLQ P\WUDQVODWLRQDORQJ ZLWKD GLVFXVVLRQ RI WKH YHUVHV $JKD ¶0XUMLrD· SS DQG Q 6HH DOVR 6ÈUDW 6ÀO.P 6ÀOLPHVSSDU,;SS $JKD¶0XUMLrD·S ,ELGSS
&219(56,21,17+(3529,1&(
ZKLFK JUDGXDOO\ HVFDODWHG IURP PLVVLRQDU\ SUHDFKLQJ DQG FKDPSLRQLQJ WKH FDXVH RI WKH FRQYHUWV WR PLOLWDQW DFWLYLW\ RQ WKHLU EHKDOI 7KH TXHVWLRQ RI ZKHWKHU WKHLU WKHRORJ\ ZDV DGDSWHG WR VXLW WKH LQWHUHVWV RI WKHLUDFWXDO DQGWKHLUFRXUWHGFRQVWLWXHQFLHV DV,FRQWHQGRUZKHWKHU WKHLU DFWLYLWLHV RQ EHKDOI RI WKHVH FRQVWLWXHQFLHV ZHUH LQVSLUHG E\ WKHLU ´WKHVLVWKDWWKHVWDWXVRIIDLWKGHSHQGHGRQWKHPHUHFRQIHVVLRQRIEHOLHI WRWKHH[FOXVLRQRIZRUNVµDV0DGHOXQJFRQWHQGVLVDFDGHPLF³DOEHLW LQWHQVHO\ LQWHUHVWLQJ :KDW UHDOO\ PDWWHUV LQ WKLV FRQWH[W LV WKDW WKH\ SURGXFHG DQ DFWLYLVW WKHRORJ\ LQ DQ LQWHUDFWLYH PLOLHX ZKHUH ERWK WKHRU\ DQG DSSOLFDWLRQ ZHUH VLQJXODUO\ GHGLFDWHG WR OXULQJ PRUH FRQYHUWVDQGWRFKDPSLRQLQJWKHFDXVHRIWKRVHZKRGRFRQYHUW 7DNHQ WRJHWKHU WKH VWDU ZLWQHVVHV WR WKH QDWXUH RI WKLV HUD RI 0XUMLrLVPLHWKHODVWWKUHHGHFDGHVRIWKH8PD\\DGSHULRGZKLFKDOVR FRLQFLGH ZLWK WKH OLIHWLPH RI WKH 2UJDQL]DWLRQ UHSUHVHQW DQ RSSRUWXQH VDPSOH RI WKH 0XUMLrLWH WKHRORJLFDO DQG DFWLYLVW IRUFHV ZRUNLQJ LQ V\QFURQL]DWLRQWRSURPRWHDQGSURWHFWFRQYHUVLRQ $EË ¼DQÈIDK DO1XuPÀQ FD WKH FHOHEUDWHG MXULVSUXGHQWFXPWKHRORJLDQDQGWKHVWXGHQWVRIWKH¼DQDILWHWUDGLWLRQ WKHRORJL]HG WR WKH EHQHILW RI WKH FRQYHUWV $EË ¼DQÈIDK KLPVHOI VXSSOLHGZLWK D OHWWHU RILQWURGXFWLRQ WR WKH FDOLSKDOFRXUWLQ'DPDVFXV WKHWZRHPLVVDULHVZKRPDO¼ÀULWKLEQ6XUD\MVHQWLQWRVHFXUH D FDOLSKDOSDUGRQ 7KHUH LV DOVR DQ DFFRXQW WKDW ´UHSRUWV $EË ¼DQÈID WU\LQJ WR FRRO GRZQ WKH KRWKHDGHGQHVV RI ,EUÀKÈP E 0D\PËQ DO ¸ÀrLJK OHFWXULQJ KLP RQ WKH IXQGDPHQWDOV RI RUJDQL]HG DFWLRQ DQG ZDUQLQJKLPDJDLQVWWKHSHULOVRILQGLYLGXDODFWLRQµ $EË &1¸D\GÀr ¸ÀOL LEQ XUD\I KDV DOUHDG\ EHHQ HQFRXQWHUHG SOHDGLQJ DW u8PDU ,,·V FRXUW WKH FDXVH RI WKH PDZÀOÈ DQG WKH FRQYHUWV
,ELGSS 0DGHOXQJ¶(DUO\0XUMLrD·S 'HPRFUDWL]LQJ WKH WKHRORJ\ RI
GLVHQJDJHPHQW EHWZHHQ ÈPÀQ DQG uDPDO $EË ¼DQÈIDK DOu¯OLP ZD DO0XWDuDOOLP S DOORZV IRU DOO 0XVOLPV QRW RQO\ WKH UXOHUV WR HQMR\ WKLV GLVHQJDJHPHQW )RU KLP LELG SS ÈPÀQ LV ZRUVKLSSLQJ *RG ZLWKRXW DVVRFLDWLQJDSDUWQHUZLWKKLPNXIULVRQO\SRO\WKHLVPVKRUWRIZKLFKQRWKLQJLVNXIU7KH KRSH LQ *RG·V IRUJLYHQHVV KRZHYHU GRHV QRW H[FOXGH DFFRXQWDELOLW\ WR +LP³WKRXJK QRW WR RWKHU FUHDWXUHV ZKRE\ GHILQLWLRQ KDYH QR ULJKW WR H[FRPPXQLFDWH EHOLHYHUVRQ WKHEDVLVRIWKHLUDFWLRQVRUODFNWKHUHRILELGSS$E˼DQÈIDKDO)LTKDO$NEDU ,, DUW SS LGHP :D¿L\\DK DUW S 7KLV LV EHFDXVH ÈPÀQ LV WKH NQRZOHGJH RI *RG LQ RQHV KHDUW WKH NQRZOHGJH RI UHYHODWLRQ LQ LWV JHQHUDOLW\ DQG WKH YHUEDO SURIHVVLRQ RI WKLV NQRZOHGJH EXW QHLWKHU LV VXIILFLHQW E\ LWVHOI $EË ¼DQÈIDK DO u¯OLPZDDO0XWDuDOOLPSSDO)LTKDO$NEDU,,DUWS:D¿L\\DKDUWS $VKuDUÈ,SS,EQ¼D]P)L¿DO,,,S $QGZRUNVWKRXJKQRWSDUWRI ÈPÀQ DUH WKH FDQRQV DQG SUHFHSWV RI EHOLHI $EË ¼DQÈIDK DOu¯OLP ZD DO0XWDuDOOLP SS 6HHDOVR$JKD¶0XUMLrD·WKHFKDUWRQSDQGWKHNH\WRWKHFKDUWRQSS DEDUÈ,,S0DGHOXQJ¶(DUO\0XUMLrD·S $JKD¶0XUMLrD·S,EQ$EÈDO:DIÀ,SS
&+$37(56,; DQG ODWHU OHDGLQJ $VKUDV· FRPPLVVLRQ WR FRQYHUW WKH 6XJKGLDQV $VKUDV VRRQ UHQHJHG RQ KLV SURPLVH WR UHOLHYH WKH FRQYHUWV IURP WKH ML]\DK KH ZDV FRXQVHOHG WR WHVW WKHP IRU ´FLUFXPFLVLRQ SHUIRUPDQFH RI WKH GLYLQH SUHFHSWV SURSHU ,VODP DQG UHFLWDO RI >DW OHDVW@ D VËUDK RI WKH 4XUrÀQµ 1RZ $EË DO¸D\GÀr DORQJ ZLWK KLV FRPUDGHV VLGHG ZLWK WKH FRQYHUWV DQG WULHG WR UHVLVW WKH PHDVXUH E\ IRUFH EXW ZHUH VXSSUHVVHG DQG WDNHQ SULVRQHUV 3URPLQHQW DPRQJVW WKH JURXS ZDV -À'.9 .'3 &u' EHWWHU NQRZQ DV 7KÀELW 4XQDKWKHSRHWZDUULRU7KLVZDVWKHILUVWVLJQRI0XUMLrLWHPLOLWDQF\ RQ EHKDOI RI WKH FRQYHUWV LQ WKH SURYLQFH LWVHOI ´'XULQJ @ D FHUWDLQ $EË 5XrEDK DO0XUMLr LVVDLGWRKDYHMRLQHGEDWWOHLQWKHUHEHOOLRXVUDQNVDVFKLHIRID0XUMLrLWH FRQWLQJHQW uDOÀ UDrV ÀrLID PLQ DO0XUMLrD 7KLV LV WKH ILUVW LQGLVSXWDEOH DSSHDUDQFH RI DQ RUJDQL]HG JURXS RI 0XUMLrLWHV DQG LW WRRN SODFH LQ ,UDT%XWWKH.KXUÀVÀQLWHFRQQHFWLRQLVPDQLIHVWLQ2Ë3 DQG PRVW SUREDEO\ DOVR $&?È) DO&WKH UHLQV RI SRZHU@ SDVVHG WR WKHLU >WKH 3URSKHW·V IDPLO\@ KDQGV QD\ LW ZDV D W\UDQW .KXUÀVÀQLDQ 3HUVLDQ UHJLPH WKDW ZKLFK DUULYHG EDO DWDW GDZODK $uMDPL\\DK.KXUÀVÀQL\\DKMDEEÀUDKµ 2I FRXUVH DGYDQFLQJ LQ VXSSRUW RI RXU DUJXPHQW WKHVH DQG VLPLODU WH[WV ZKLFK UHYROYH DURXQG FKDUDFWHUL]LQJ WKH HPHUJLQJ UHJLPH UDWKHU WKDQWKHPRYHPHQWZKLFKEURXJKWLWLQWRH[LVWHQFHLVRSHQWRWKLVYHU\ FULWLFLVP1RRQHFRQWHVWVWKHHYHQWXDO3HUVLDQLQIOXHQFHLQWKHu$EEÀVLG UHDOPWKHFRQWURYHUV\LVDURXQGWKHHWKQLFFKDUDFWHURIWKHIRUFHVZKLFK LQVWDOOHGLW7UXH%XWWKLVJLYHVULVHWRWKHTXHVWLRQKRZZDVLWSRVVLEOH IRUWKHLQIOXHQWLDO3HUVLDQHOHPHQWVWRH[WHQGWKHLULQIOXHQFHEH\RQGWKH FXOWXUDO DQG SROLWLFDO VSKHUHV LQWR WKH PLOLWDU\ HVWDEOLVKPHQW ZKLFK LV WKH ODVW EDVWLRQ DQ ¶H[LVWLQJ· SRZHU HWKQLF RU RWKHUZLVH ZRXOG SHDFHDEO\ VXUUHQGHU" +RZ GLG WKH\ FRPH WR FRQWURO WKH PLOLWDU\ DQG FRPSULVH LWV EDFNERQH LI WKH\ ZHUH QRW WKH XQGLVSXWHG YLFWRUV" ,I WKH $UDEV PDGH XS WKH PDLQ EXON RI WKH YLFWRULRXV IRUFHV KRZ FRPH WKH\ ZHUHVRVRRQGLVFDUGHGIURPLWVUDQNVDVSKUDVHGE\6X\ËÈ´+LVWRULDQV VDLG LQ WKH UHDOP RI %DQË DOu$EEÀV WKH QDPH RI WKH $UDEV ZDV GURSSHG IURP WKH GÈZÀQµ 'RHV LW PDNH VHQVH WR DVVXPH WKDW WKH u$EEÀVLG UHDOP HPHUJHG DV D UHVXOW RI D VWUXJJOH EHWZHHQ $UDEV DQG $UDEV LQ ZKLFK $UDEV GHIHDWHG $UDEV WKHQ ERWK $UDEV WKH YLFWRU DQG
-ÀLÍ%D\ÀQ,,,S -&-&'È6L\DU9,S 6X\ËÈS
&+$37(5(,*+7
WKH YDQTXLVKHG ORVW DOO PLOLWDU\ FORXW" +RZ FRXOG WKH SDUWLVDQV RI WKH GDuZDKVRVRRQDQGZLWKRXWDILJKWORVHWKHGDZODK"2IFRXUVHRQHPD\ VD\WKLVLVQRWDGHFLVLYHDUJXPHQW ,Q KLV DOOHJHG GLUHFWLYH WR $EË u,NULPDK 0XDPPDG LEQ u$OÈ UHSRUWHGO\ VDLG ´ DQG UHFUXLW DEXQGDQWO\ IURP DPRQJVW WKH ,UDQLDQV IRU WKH\ DUH WKH FRQVWLWXHQWV RI RXU FDXVH DQG E\ WKHP *RG VKDOO VXSSRUW LW ZD LVWDNWKLU PLQ DO$uÀMLP IDLQQDKXP DKO GDuZDWLQÀ ZD ELKLP \XrD\\LGXKÀ $OOÀK µ 6LPLODUO\ $EË 0XVOLP UHSRUWHGO\ DGPLWWHG WKDW WKH ,PÀP KDG LQVWUXFWHG KLP WR ´JDWKHU WKH ,UDQLDQV DURXQG PH DQG WR IDYRU WKHP ZD >DQ@ DMPDu& LOD\\D DOu$MDP ZD &0-9&¿¿&-:2 µ +HQFH FRPPHQWV WKH SURu$EEÀVLG DQRQ\PRXV FRPSLOHU ´WKH ,UDQLDQV DQG PDQ\ IURP WKH LQUHVSRQGLQJWRWKHGDuZDK@DQGKH SUDLVHG DKO .KXUÀVÀQµ 'ÀZËG DOVR VDLG YHUEDWLP ´7KH $UDEV KDYH XQDQLPRXVO\ DJUHHG WR GHQ\ RXU ULJKWV DQG WR VXSSRUW WKH RSSUHVVRU 8PD\\DGV XQWLO *RG SURYLGHG IRU XV ZLWK WKLV DUP\ RI DKO .KXUÀVÀQ ZKR DQVZHUHG RXU FDOO DQG PRELOL]HG WR VXSSRUW XVµ +RZ FDQ RQH FRQVWUXH V\QRQ\PLW\ LQ VXFK D UD]RU VKDUS FRQWH[W RI DQWRQ\PV VR FORVHO\MX[WDSRVHG 7KHUH FDQ EH QR GRXEW WKDW DW OHDVW LQ DV IDU DV WKH LQWHJULW\RI RXU VRXUFHPDWHULDOLVUHVSHFWHGWKHSKUDVH¶DKO.KXUÀ8À3·DQGE\H[WHQVLRQ .KXUÀVÀQL\\DK LQ WKH 5HYROXWLRQDU\ FRQWH[W GLG QRW EHWRNHQ WKH $UDEV RI .KXUÀ8ÀQ 1RZKHUH LV WKLV EHWWHU DWWHVWHG WKDQ LQ 4D&'&·8 VSHHFK WR KLV WURRSV DV KH WULHG WR OLIW XS WKHLU PRUDOH ZKHQ WKH\ FRQIURQWHG WKH EHWWHU HTXLSSHG 8PD\\DG DUP\ RI 1XEÀWDK LEQ ¼DQÍDODK LQ -XUMÀQ :KLOH LW LV YHU\ LPSRUWDQW WR QRWH WKH PRUDOLVW FRVPRSROLWDQ HJDOLWDULDQLVP RI DQ LGHDOLVW $UDE 0XVOLP ZKLFK DEXQGDQWO\JXVKHVIRUWKIURPWKLVSLHFHXQLTXHO\DWWULEXWHGWRDQ$UDE LW LV HYHQ PRUH YLWDO³IRU RXU SUHVHQW SXUSRVH³WR QRWH WKH QHDW XQDPELJXRXV GHPRJUDSKLFV SLQSRLQWHG WKURXJK LWV ODQJXDJH 7KH WHUP ¶DKO.KXUÀVÀQ·ZKLFK&&'&-XVHGWRDGGUHVVKLVWURRSVXQHTXLYRFDOO\ PHDQVWKH,UDQLDQQRQ$UDEQDWLYHVRIWKHODQG$QG4DDEDK·VGDULQJ UHIHUHQFH WR WKH RULJLQDO RZQHUVKLS RI WKH ODQG IRUFHIXOO\ WDEOHV D
6KDURQ%ODFN%DQQHUVSQ %DOÀGKXUÈ$QVÀEDO$VKUÀI,,,SS
/,7(5$5$EË 0XVOLP·V@ RIILFHVLQWRGLVFRUG·$EËDO-&À'LQDEDUÈ,,SS F $EËDO0D\OÀrDOUHDG\@ KLV DUP\ KDV JURZQ DV ELJ DV \RXUV· 0DGÀrLQÈ LQ DEDUÈ,,S $QGZKHQWKHVHDQGVLPLODUHIIRUWVPHWZLWKWHPSRUDU\VXFFHVVDQG ODWHU FROODSVHG KLVWRULDQV GHVFULEHG WKH GHPRJUDSKLFDOO\ VKLIWLQJ DOOLDQFHV LQ QR OHVV HWKQLFDOO\VODQWHGODQJXDJH$EËDO-&À'¶7KHQWKHWULEHVPHQIURP0XÉDU5DEÈu&- DQG&À3DJUHHGWRVWRSILJKWLQJDQGWRMRLQIRUFHVWRILJKW$EË0XVOLP·LQDEDUÈ ,, S DEDUÈ KLPVHOI ¶7KH\ XQDQLPRXVO\ DJUHHG WKH 0XÉDULWHV ILUVW@ DV KHDUVD\ WKHQ >\RX ZLWQHVVHG LW DV@ D VFDQGDORXV DFW³WKH FRQFRUG RI WKHVH UHQHJDGHV DIWHU WKHLU GLVFRUG WKH FOHDU PDQLIHVWDWLRQ RI WKHLU VHFUHW DIWHU DPELJXLW\ DQG WKH SUROLIHUDWLRQ RI WKHLU GHFHSWLRQ DQG GHOXVLRQ LQ WKH ODQG DIWHU LW KDG EHHQ FRQVWUDLQHG +HUH WKH\ DUH WKH\ OHIW .KXUÀVÀQ WKH SULPH RI WKH ZRUOGDQGWKHDERGHRIWKH,UDQLDQVGÀUDOu$MDP EHKLQGWKHPDQGFDPH DIWHU\RXUWHUULWRU\WRILJKW\RXRYHULWDQGWREXGJH\RXDZD\IURPLWE\ WKHWZRDUPLHVRIIDOVLILFDWLRQDQGRIWKHVZRUG)RUWKHIHDURI*RG\RX PXVW GHIHQG \RXU UHOLJLRQ DQG IRU IHDU RI VKDPH \RX PXVW EHZDUH WKDW \RXUZRUOGO\SRVVHVVLRQVEHZUHVWHGIURP\RX8SKROG\RXUDOOHJLDQFHWR WKRVHZKRUHOLHGRQ\RXDQGGRQRWHQDEOHWKHKDQGRIWKH,UDQLDQUDFH WR KROG WKH UHLQV RI WKH $UDE UHDOP ZDOÀ WXPNLQË QÀ¿L\DW DOGDZODK DO u$UDEL\\DK PLQ \DG DOILrDK DO$uMDPL\\DK 6WDQG ILUP XQWLO WKLV GHOXJH FOHDUV DZD\DQGWKLVLQWR[LFDWLRQFRPHVWRVREULHW\)RUWKHIORRGVKDOOGU\XS DQGWKH¶VLJQRIWKHQLJKW·VKDOOEH¶EORWWHGRXW·
0RUHLPSRUWDQWLVHSLVWOHQRLQWKHVHTXHQFH,WLVRQHRIWKHIRXUWHHQ KLWKHUWR XQSXEOLVKHG DQG XQNQRZQ $VVXFKLW LVSUHFLRXV QHZ PDWHULDO RI JUHDW FRUURERUDWLYH YDOXH ,QWHUHVWLQJO\ DOWKRXJK³RU PRUH DFFXUDWHO\ EHFDXVH³LW DGGV QRWKLQJ QHZ WR WKH YROXPLQRXV LQIRUPDWLRQ ZH DOUHDG\ KDYH LWV PRVW SUHFLRXV DGGLWLRQ LV LWVHOI³LWV PHUHH[LVWHQFH,WFHPHQWVWKHSUHUHYLVLRQLVWFRQYHQWLRQDOZLVGRP7KLV HSLVWOH LV D OHQJWK\ OHWWHU ZULWWHQ RQ EHKDOI RI 0DUZÀQ ,, WR &¿7 LEQ
,ELG '.)SS
&+$37(5(,*+7
6D\\ÀU RQ WKH VXEMHFW RI WKH 5HYROXWLRQ DQG LV GDWHG WR WKH \HDU $OWKRXJK WKH OHWWHU LV IXOO RI GHIDPDWRU\ ODQJXDJH RI WKH W\SH WKDW ERWK SDUWLHV FRXOG DQGZLWK FRORUIXOO\GLIIHUHQWVODQWLQJVGLG XVH DJDLQVW RQH DQRWKHU LW LV DOVR ULIH ZLWK REMHFWLYH GHPRJUDSKLF LQGLFDWRUV DQG KLVWRULFDO UHIHUHQFHV (YHQ VRPH VSHFLILF DUWLFXODWLRQV RI WKH GHIDPDWRU\ ODQJXDJH DUH ODGHQ ZLWK VXFK GHPRJUDSKLF SRLQWHUV 7KHIROORZLQJLVDWUDQVODWLRQRIVRPHUHOHYDQWSDVVDJHV 7KH FURSSLQJ XS RI WKLV VSURXW DO3ÀELWDK .3 WKH ODQG RI .KXUÀVÀQ >KDV EHHQ DQ LQVWUXPHQW ZLWK ZKLFK@ *RG LQWHQGHG WR KXPLOLDWH WKRVH XQJUDWHIXO IRU +LV JUDFH >,W VSURXWHG DW WKH KDQGV RI@ DQ HYLO PDQ WR ZKRP HYLO PHQ UDOOLHG :KHQ KH VDZ WKH $UDEV SUHRFFXSLHG ZLWK WKHPVHOYHV KH WRRN WKH RSSRUWXQLW\ RI WKHLU EHLQJ HQJURVVHG LQ WKHLU KRVWLOLWLHVWRZDUGVHDFKRWKHUDQGWKDWWKH\QHJOHFWHGWRDGGUHVVWKHPRVW SUHVVLQJ RI WKHLU FRQFHUQV:KHQKHJUHZ VWURQJHUDQG PRUHUHVRXUFHIXO « DQG KLV>WHQWDFOHV@ VSUHDGLQ HYLO KH VODQGHUHGWKH%RRNWKH 4XUrÀ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« 'R QRW >\RX 1D¿U DQG \RXU PHQ@ DEDQGRQ UHVROXWHQHVV >VLPSO\@ EHFDXVH WKH\ KDYH JDLQHG WKH XSSHU KDQG RYHU \RX RU EHFDXVH RI WKHLU QXPHURXVQHVV DQG \RXU IHZQHVV IRU LW LV EHFDXVH \RX KDG VWDUWHG WKH FRQIURQWDWLRQ ZLWK QHJOLJHQFH WKDW WKH\ JUHZ QXPHURXV DQG SURVSHUHG ZLWK@ ULJKWQHVV DQG ULJKWQHVV LV ZRUWKLHU RI \RX DQG \RXDUH FORVHUWRLWDQG*RGLVPRUHZUDWKIXOZLWKWKHPVRDVVDLOWKHP >DLGHG@ E\ WKH LQWHQVLW\ RI *RG·V ZUDWK VHHNLQJ WR JORULI\ ZKDW WKH\ EHOLWWOHG +DG LW QRW EHHQ IRU WKHLU DOOXUHPHQW RI WKH SHRSOH DQG WKHLU >DWWHPSWV@ WR DSSHDVH DQG UHDVVXUH WKHP DERXW KLP >LH WKH QHYHU QDPHG$EË0XVOLP@DQGIRUWKHSHRSOH·VKRSHLQKLP>LHWKHLUWDNLQJ WKH EDLW@ WKH\ >LH WKH 5HYROXWLRQDULHV@ ZRXOG KDYH H[KLELWHGYDULHWLHV RI JRGOHVVQHVV JURVV VODQGHUV JUDYH VHOILVKQHVV DQG SXUVXLW RI DWURFLWLHV ZKDW ZLWK WKH OLYLQJ ZRXOG KDYH ZLVKHG WR KDYH EHHQ GHDG 7KHUHIRUH UHVRUW WR SHUVHYHUDQFH HDUQLQJ >WKH FDSDFLW\ IRU@ LW E\ \RXU JRRG IDLWK 5HPHPEHU ZKDW WKHLU UHFHQW H[SHULHQFH FRPSULVHV WKH ZRUVKLS RI ILUH DQGLGROV« 7KH\IHLJQHG,VODPZKLOHLJQRUDQWRILWDQGEHVHHFKHG\RXLQLWVQDPH ZKLOH WKHPVHOYHV DEDQGRQLQJ LW DQG WKH\ IRXJKW \RX RYHU LW ZKLOH WKH\ IDOO VKRUW RI LWV GHPDQGV :LWK \RXU NQRZOHGJH RI LW \RX DUH ZRUWKLHU RI GHIHQGLQJLW«RXWRIWKDWWRWDOLW\@
1DWXUDOO\ WKH OHWWHU UHSUHVHQWV WKH RIILFLDO 8PD\\DG OLQH %XW WKH UHDO LVVXH LV ZKHWKHU WKLV IDFW GLVFUHGLWV LW DQG LI VR WR ZKDW H[WHQW u$EEÀV SXWVLWZHOOZKHQKHVD\VWKDWWKHOHWWHU XQFRYHUV PDQ\ DVSHFWV ZKLFK KLVWRULFDO UHVHDUFK PD\ VXSSRUW RU PD\ GLIIHUZLWK,WUHSUHVHQWVDQ¶RIILFLDO·SRLQWRIYLHZZKLFKE\LWVHOILVQRW D GUDZEDFN :KDW PDWWHUV LV WR ZKDW H[WHQW GRHV LW UHSUHVHQW WKH KLVWRULFDO UHDOLW\ DQG WR ZKDW H[WHQW PD\ VRPH RI WKH LQIRUPDWLRQ FRQWDLQHGLQLWEHGHHPHGDV¶SURSDJDQGD·"
* UHYLHZV WKH OHWWHU LQ GHWDLO DQG SURYLGHV DQ LOOXPLQDWLQJ FRPPHQWDU\ 7R WKH SRVVLEOH FKDUJH ´LW PD\ EH VDLG WKDW WKLV OHWWHU DFWXDOO\ DLPHG DW GLVWRUWLQJ UHDOLW\ EHFDXVH LW UHVRUWHG WR HYRNLQJ $UDE UDFLVP LQ WKH QDPH RI UHOLJLRQµ KLV DQVZHU LV ´EXW KRZ ZRXOG LW KDYH EHHQ SRVVLEOH IRU WKLV OHWWHU WR KDYH EHHQ UHDG WR WKH SUR8PD\\DG $UDEV RI .KXUÀVÀQ DQG IRU WKHP WR EHOLHYH LW LI WKH 5HYROXWLRQDULHV ZHUH$UDEVOLNHWKHPVHOYHV"µu$EEÀVSODFHVWKHOHWWHUILUPO\ZLWKLQWKH FRQWH[W RI WKH PRGHUQ VFKRODUO\ FRQWURYHUV\ RYHU WKH HWKQLF LGHQWLW\ RI WKH 5HYROXWLRQDULHV +H UHIXWHV VRPH RI WKH DUJXPHQWV RI WKH SRVW :HOOKDXVHQUHYLVLRQLVWVDQGDFFRUGVWKHOHWWHUWKHSURPLQHQWSRVLWLRQ LQWKHFRQWH[WZKLFKLWGHVHUYHV6D\VKH 6RPH RI WKH FRQWHQWV RI WKLV HSLVWOH EULQJ KLVWRULFDO UHVHDUFK EDFN WR D WKHRU\ ZKLFK YDQ 9ORWHQ KDG SUHVHQWHG DQG ZKLFK :HOOKDXVHQ VXEVHTXHQWO\HODERUDWHG³QDPHO\WKDWWKRVHZKRVXSSRUWHGWKHu$EEÀVLG 'DuZDK ZHUH WKH PDZÀOÈ FODVV GULYHQ E\ 3HUVLDQ ,UDQLDQ QDWLRQDOLVW IHHOLQJV7KLVHSLVWOHUHVWRUHVWRYDQ9ORWHQ·VDQG:HOOKDXVHQ·VWKHRU\LWV ZHLJKWDQGVXSSRUWVLWZKHQLWVWDWHVWKDWWKRVHZKRIROORZHG$EË0XVOLP ZHUH ¶UHFHQW ZRUVKLSSHUV RI ILUH DQG LGROV· WKDW LV WKH\ ZHUH RI 3HUVLDQ VWRFN
%XW WKHQ u$EEÀV DWWDFKHV D TXDOLILHU WR WKH H[WHQW WR ZKLFK WKLV OHWWHU VXSSRUWVWKHFODVVLFDOWKHRU\+HVD\V +RZHYHUWKDWWKHRU\>LH:HOOKDXVHQ·V@UHTXLUHVVRPHPRGLILFDWLRQLQ WKH OLJKW RI WKLV OHWWHU )RU WKHVH 3HUVLDQV ZKR VXSSRUWHG $EË 0XVOLP GLG QRW UHYROW PRWLYDWHG E\ QDWLRQDOLVW ,UDQLDQ IHHOLQJV 7KH\ UDWKHU
,ELG u$EEÀVS ,ELGSS ,ELGS:HVKDOOHFKRWKLVVDPHGHIHQVHLQHVWDEOLVKLQJWKHEDVLFFUHGLELOLW\RI
1D¿ULEQ6D\\DU·VEÀrL\\DKSRHPLQIUD ,ELGSS ,ELGSS
&+$37(5(,*+7
¶SURFODLPHG ,VODP ZKLOH LJQRUDQW RI LW DQG EHVHHFKHG \RX LQ LWV QDPH ZKLOH WKHPVHOYHV DEDQGRQLQJ LW DQG WKH\ IRXJKW \RX RYHU LW ZKLOH WKH\ IDOOVKRUWRILWVGHPDQGV·WKDWLV,VODPLWVHOIZDVWKHLUVORJDQ
u$EEÀV LV FOHDUO\ IRFXVLQJ RQ WKH TXHVWLRQ RI PRWLYDWLRQ ZKLFK LV LQ SDUW DQG DW OHDVW LQ WKLV FRQWH[W DQ LVVXH RIWKHLQQHUKXPDQVRXO³DQ LVVXH RI LQWHQWLRQ DULVLQJ IURP EHOLHI +H DFFHSWV YDQ 9ORWHQ·V DQG :HOOKDXVHQ·V LGHQWLILFDWLRQ RIWKHHWKQLFLGHQWLW\RI WKH 5HYROXWLRQDULHV DQG WKDW u$EG DO¼DPÈG·V OHWWHU VXSSRUWV LW %XW WR WKH TXHVWLRQ RI ZK\ WKHVH ,UDQLDQVUHYROWHGu$EEÀVFRQVWUXHVWKDWWKHOHWWHUJLYHV DQDQVZHU GLIIHUHQW IURP WKHLUV +H HPSKDWLFDOO\ QHJDWHV WKH QDWLRQDOLVW PRWLYDWLRQEXWVWRSVVKRUWRIDIILUPLQJWKHUHOLJLRXVRQHE\UHOHJDWLQJLW WR KDYLQJ EHHQ D VORJDQ VKLuÀU ,W LV QRW FOHDU KRZHYHU ZK\ u$EEÀV LQWHUSUHWV u$EG DO¼DPÈG·V WH[W DV QHJDWLQJ D EDVLFDOO\ QDWLRQDOLVW PRWLYDWLRQ ZKHQ WKH WH[W VWULNHV WKH UHDGHU DV EHLQJ H[SOLFLWO\ FOHDU RQ WKLVSRLQW $FWXDOO\ u$EG DO¼DPÈG GLG QRW DFFXVH $EË 0XVOLP DQG KLV IROORZHUVRILQQRFHQWLJQRUDQFHRI,VODP+HDFFXVHGWKHPRIDEXVLQJLWV VORJDQVDVDFDPRXIODJH´WRHQWLFHSHRSOHµDQG´XQWLOVXFKDWLPHDVKH LV HPSRZHUHGµ WR XQFRYHU KLV WUXH LQWHQWLRQV DQG ´REOLWHUDWH WKH WUDFHV RI WKH 5HOLJLRQ « 7KH\ DUH WKH UHQRXQFHUV RI LWV WRWDOLW\ DQG WKH WZLVWHUVµRIWKHELWVDQGSLHFHVRILWZKLFKWKH\DFFHSWHG)U\HDUJXHVIRU WKH DXWKHQWLFLW\ RI $EË 0XVOLP·V ,VODPLF IDLWK ´+LV 8PD\\DG HQHPLHV KDGHYHU\RSSRUWXQLW\WRFDOOKLPDUHEHODJDLQVW,VODPRUWRGHQRXQFH KLPDVDKHUHWLFEXWVXFKLVQRWWKHFDVHµ2IFRXUVHZKHQ)U\HZURWH WKLV LQ u$EG DO¼DPÈG·V OHWWHU ZDV QRW XQFRYHUHG \HW 1RU ZDV $NKEÀU DO'DZODK DOu$EEÀVL\\DK ZKHUH 6DOP LEQ $ZD] LV TXRWHG UHIHUULQJ WR $EË 0XVOLP DV D 0D]GDNLWH %XW 1D¿U LEQ 6D\\ÀU·V UHVRXQGLQJDFFXVDWLRQVZHUHDYDLODEOHWR)U\H ,W LV RXU SRVLWLRQ KRZHYHU WKDW DWWHPSWLQJ WR GHWHUPLQH WKH WUXH LQQHU EHOLHIV RI LQGLYLGXDOV³OHW DORQH FROOHFWLYLWLHV³DQG WKHQ WR DGYDQFH VXFK GHWHUPLQDWLRQV DV GHFLVLYH KLVWRULRJUDSKLFDO WRROV RI LQYHVWLJDWLRQLVVXSHUIOXRXVUHGXQGDQWDQGXWWHUO\XVHOHVV7KLVLVQRWWR VD\ WKDW WUXH EHOLHIV DUH QRW SRZHUIXO PRWLYDWRUV RU WKDW WKH\ DUH QRW LQWHQVHO\ LQWHUHVWLQJ DQG WKDW LI GHPRQVWUDEOH WKH\ DUH QRW
1RWHWKHLQWHQWLRQDOGLVFUHSDQF\EHWZHHQP\WZRGLIIHULQJWUDQVODWLRQVRIWKHYHUE ¶LGGDu&>À7·8 54*2 u$EG DO¼DPÈG·V OHWWHUV DQG WKH RWKHU WH[WXDO PDWHULDO GLVFXVVHG HDUOLHU HVWDEOLVK WKH SDUDPHWHU RI WKH UHPDLQGHU RI WKH GHPRJUDSKLF LVVXH DGHTXDWHO\ GHILQH WKH SRLQWV RI FRQWHQWLRQ DQG FOHDUO\ VWDWH WKHLU RZQ SRVLWLRQV RQ HDFK ,W PD\ EH YDOLG WR TXHVWLRQ WKHVH SRVLWLRQV EXW LW LV QRW YDOLG WR GLVPLVV WKHP RIIKDQGHGO\ DV SURSDJDQGD7KHVHSRLQWVRIFRQWHQWLRQDUH +RZ UHFHQW ZDV WKH FRQYHUVLRQ RI WKH FURVVVHFWLRQ WDUJHWHG E\ WKH 8PD\\DGFKDUDFWHUL]DWLRQV" +RZQXPHURXVZHUHWKH\" 'LGWKH\DOOIORFNWR$EË0XVOLPDQGDVLGHIURPWKHLUDEVROXWHVL]H ZKDWSURSRUWLRQRI$EË0XVOLP·VIRUFHVGLGWKH\SURYLGH" 'LG WKH\ FDUU\ ZLWK WKHP DQ\ ROG EDJJDJH IURP WKHLU SUHYLRXV GHQRPLQDWLRQV WKXV DGYHUWHQWO\ RU LQDGYHUWHQWO\ JLYLQJ WKHLU SUR 8PD\\DG DGYHUVDULHV WKH LQQRFHQW LPSUHVVLRQ RI WKHLU LQILGHOLW\ RU WKH YLFLRXVO\PDQLSXODWHGH[FXVHWRDWWDFNWKHP" 7KH ILUVW WKUHH TXHVWLRQV KDYH DOUHDG\ EHHQ GLVFXVVHG DQG ZLOO EH TXDQWLWDWLYHO\ DGGUHVVHG LQ SDUW WKUHH RI WKLV ERRN 7KH ILQGLQJV KDYH SURYHQ DQG ZLOO IXUWKHU SURYH WKH EDVLF DFFXUDF\ RI WKH DERYH WH[WXDO
KDG GHQLHG PH 2K *RG PDNH WKHP WDVWH WKH KHDW RI WKH VZRUG· 'ÀUTXQÈ ,9 S 6HHFKDSWHUVL[DERYH
/,7(5$5ZKR@ KDG JDWKHUHG XQGHU $EË 0XVOLP·V EODFN VWDQGDUGµ DQG KH DVFULEHV ´WKH ILQDO UXLQ RI WKH 8PD\\DGVµ WR ´D ULVLQJ RI WKH -Èu.9* ,UDQLDQV LQ .KXUÀVÀQµ DQG KH GRHV GLVWLQJXLVK EHWZHHQ ´WKH 0DZÀOÈ >DQG@ WKH QHZ FRQYHUWVµ +LV PRVW GLUHFW GHPRJUDSKLF GHVFULSWLRQ RI WKH 5HYROXWLRQDULHV DGPLWV WR D PLQRULW\ RI $UDEV DQG D PDMRULW\ RI ,UDQLDQV FRPSULVLQJ ERWK SHDVDQWV LH FRQYHUWV DQG 0DZÀOÈ 6D\V KH ´7KH PDMRULW\ RI >$EË 0XVOLP·V@ DGKHUHQWVFRQVLVWHGRI,UDQLDQSHDVDQWVDQGRIWKH0DZÀOÈRIWKHYLOODJHV RI0DUZEXWWKHUHZHUH$UDEVDPRQJVWWKHPDOVRZKRPRVWO\RFFXSLHG OHDGLQJ SRVLWLRQV 7KH FRQQHFWLQJ HOHPHQW ZDV WKH UHOLJLRQ WKH VHFWµ +H GLG QRW VSHFLI\ D PDMRULW\ ZLWKLQ WKH PDMRULW\ QRU GLG PRVW RI WKH PDWHULDOV DFFHVVLEOH WR KLP SURPSW KLP WR EH WKDW VSHFLILF 2XU VXJJHVWHGPRGLILFDWLRQGRHV
&I VXSUD FKDSWHU WKUHH $JKD ¶$EË 0XVOLP· SS DQG SDVVLP 'ÈQDZDUÈ SS$NKEÀUSS :HOOKDXVHQS ,ELGS ,ELGS ,ELGS 5HVSRQVLEOHIRULQIODWLQJWKLVLVVXHDUHDQXPEHURIIDFWRUVD :HOOKDXVHQ·VQHJOHFW WRFDUU\WKHGLVWLQFWLRQWRWKHUHTXLUHGOHQJWKVE 'HVSLWHKLVUHFRJQLWLRQRIWKHILQDQFLDO PDOWUHDWPHQWWRZKLFKWKH6XJKGLDQFRQYHUWVKDGEHHQVXEMHFWHGSI DQGUDWKHU WKDQKDUSLQJRQWKHWKHPH:HOOKDXVHQIRFXVHVDOOWKURXJKRQWKHPDOWUHDWPHQWRIWKH PDZÀOÈ WRWKH SRLQW RIH[DJJHUDWLRQ $FWXDOO\ WKH ¶JHQXLQHPDZÀOÈ· WRERUURZ1D¿ULEQ 6D\\ÀU·V SKUDVH ¿DPÈP DOPDZÀOÈ ZHUH FRPSDUDWLYHO\ SULYLOHJHG ZKHQFH &URQH·V VXJJHVWLRQ RI D PRGLILFDWLRQ RI VRUWV WR :HOOKDXVHQ·V WKHVLV 6KH DFFXUDWHO\ DVFULEHV WR :HOOKDXVHQDVZHOODVWR'HQQHWWDQG*LEEDPLVSODFHGDVVRFLDWLRQRIWKH¶PDZÀOÈZLWK ILVFDOGLVDELOLWLHV·DQGDJDLQFRUUHFWO\VKHVXJJHVWVWKDW¶WKHFRQYHQWLRQDOSLFWXUHDSSOLHV RQO\WRDVSHFLDOW\SHRIFRQYHUW·&URQH¶0DZOÀ·SE %XWE\VSHFLI\LQJWKLVW\SH DV¶WKHIXJLWLYHSHDVDQW·VKHH[FOXGHVDOORWKHUVWD\SXWSHDVDQW¶FRQYHUWV·RUVKHFRQYHUWV WKH HQWLUH ¶FRQYHUW· SHDVDQWU\ WR IXJLWLYHV F 7KH LQDGYHUWHQW ORRVH XVDJH RI WKH WHUP PDZÀOÈLQVHFRQGDU\OLWHUDWXUHZKLFKGUHZRQRUZKLFKVXPPDUL]HGRUFRPPHQWHGRQ
&+$37(5(,*+7
7KHODVWRIWKHDERYHIRXUTXHVWLRQVKDVWRGRZLWKWKHSRVVLEOHIXVLRQ LQ WKH ¶UHOLJLRQ· RI WKH FURVVVHFWLRQ RI 5HYROXWLRQDULHV WDUJHWHG E\ DERYH DFFXVDWLRQV RI EHOLHIV DQG SUDFWLFHV GUDZQ IURP WKHLU UHFHQW ,UDQLDQGHQRPLQDWLRQVZLWK,VODPLFEHOLHIV6SHFLILFFKDUJHVRIVXVWDLQHG ZRUVKLS RI ¶FDWV DQG KHDGV· DO VDQÀQÈU ZD DOUXrËV DQG RI UHMHFWLQJ WKH WRWDOLW\ RI WKH UHYHODWLRQ DQG DFFHSWLQJ VHOHFWLYHO\ FHUWDLQ VSHFLILFV DQG WZLVWLQJ WKHLU PHDQLQJ LQ DGGLWLRQ WR JHQHUDO FKDUJHV RI UHFHQW DQG FRQFHLYDEO\VXVWDLQHG¶ZRUVKLSRIILUHDQGLGROV·DQGEHOLHYLQJLQDQRQ VFULSWXUDO UHOLJLRQ UHVRQDWH WKURXJKRXW FRQWHPSRUDQHRXV WH[WXDO HYLGHQFH7KHLUFORVHIRUHUXQQHUVWKRVHZKRKDGEHHQFRQYHUWHGDWWKH KDQGV RI WKH 0XUMLrLWHV DQG ZKR LQ PRVW SUREDELOLW\ MRLQHG WKH UDQNV KDG DOVR EHHQ GHVFULEHG DV ´SHRSOH ZKR GR QRW SUD\µ +LVWRULDQVDQG KHUHVLRJUDSKHUV DGGHG WR WKH OLVW WKH EHOLHI LQ WUDQVPLJUDWLRQ VH[XDO OLFHQWLRXVQHVV JHQHDORJLFDO PRELOLW\ LQ WUDQVIHUULQJ WKH ,PÀPDWH RU HYHQ GLYLQH SHUVRQLILFDWLRQ WR ,UDQLDQ ,PÀPV DQG SURSKHWV³QRW OHDVW RI ZKRP ZHUH .KLGÀVK $EË 0XVOLP KLPVHOI KLV GDXJKWHU )ÀLPDK DQG KHUVRQ0XDKKDU $Q LQGHSWK H[DPLQDWLRQ RI WKH UHOLJLRXV HOHPHQWV RI WKLV SXUSRUWHG IXVLRQ RI ,VODPLF DQG ,UDQLDQ EHOLHIV LV EH\RQG WKH VFRSH RI WKLV ERRN +HUHLVDEULHIUHYLHZRIWKHLVVXH 6RPHPRGHUQ$UDEVFKRODUVSDLGLQWHQVHDWWHQWLRQWRWKHLVVXHIURP D SHUVSHFWLYH ZKLFK PD\ KDYH EHHQ LQIOXHQFHG E\ WKH PRGHUQ WHQVLRQV EHWZHHQ $UDE DQG 3HUVLDQ QDWLRQDOLVPV 4XLWH DVLGH IURP PRGHUQ $UDE SURMHFWLRQV DQG FRQWUDU\ WR u$EEÀV· GLVWLQFWLRQ RI VRUWV EHWZHHQ QDWLRQDOLVWLF PRWLYDWLRQV DQG SURFODLPLQJ ,VODP DV D VORJDQ 0DGHOXQJ UHFRJQL]HGWKHLQVHSDUDELOLW\RIWKHWZR6D\V0DGHOXQJ WKH HLJKWK DQG QLQWK FHQWXULHV ZLWQHVVHG D QXPEHU RI SRSXODU UHYROXWLRQDU\ PRYHPHQWV LQ ,UDQ ZKLFK RYHUWO\ PL[HG 3HUVLDQ DQG ,VODPLF UHOLJLRXV EHOLHIV DQG PRWLYHV 7KH JHQHULF QDPH PRVW RIWHQ DSSOLHG WR WKHVH PRYHPHQWV LQ WKH VRXUFHV LV .KXUUDPGÈQL\\D RU .KXUUDPPL\\D 7KH .KXUUDPL\\D UHSUHVHQWHG 3HUVLDQ QDWLRQDO VHQWLPHQWV ORRNLQJ IRUZDUG WR D UHVWRUDWLRQ RI 3HUVLDQ VRYHUHLJQ UXOH LQ FRQWUDVWWRWKHXQLYHUVDOLVWUHOLJLRXVWHQGHQFLHVRI0DQLFKDHLVPµ
:HOOKDXVHQ7KLVOLWHUDWXUHIDLOVWRUHIOHFWWKHGLVWLQFWLRQEHWZHHQWKHWZRVRFLRUHOLJLRXV FODVVHVRI¶0XVOLP·,UDQLDQVHYHQLIRQO\WRWKHH[WHQW:HOOKDXVHQKLPVHOIGLG 1D¿ULEQ6D\\ÀU·VSRHPRQWKH0XUMLrDKYHUVHLQDEDUÈ,,DQGLQP\ WUDQVODWLRQ$JKD¶0XUMLrD·S 0DGHOXQJ¶0D]GDNLVP·LGHP¶.KXUUDPL\\D·VXSUDFKDSWHURQH 6HHHJ'ËUÈ6KXuËEL\\DK+DGGÀUDKHVSSSDQGSDVVLP'ËUÈDO¼DUDNÀW DO+DGGÀPDK 0DGHOXQJ ¶0D]GDNLVP· SS $OWKRXJK EH\RQG RXU VFRSH 0DGHOXQJ·V GLVWLQFWLRQEHWZHHQ0D]GDNLVP.KXUUDPL\\DKRQWKHRQHKDQGDQG0DQLFKDHLVPRQ WKHRWKHUKDQGLVRILQWHQVHLQWHUHVWWRWKHVFKRODURIu$EEÀVLGVWXGLHV,WZRXOGDSSHDU
/,7(5$5WKH TXHVWLRQHG@ GLVDJUHHG RQ WKH PDWWHU 6R KH VXPPRQHG WKH SUHIHFWV RI WKH 1DNKDu >WULEH@ 7KH\ EURXJKW WKHLU GÈZÀQ LQ WKH GÈZÀQ KH >,EUÀKÈP DO1DNKDuÈ@ ZDV IRXQG WR EH D PDZOÀ· %DOÀ)-:7È $QVÀE DO$VKUÀI ,,, S 7KLV LV QRW WR VD\ WKDW WKLV ,EUÀKÈP ZDV UHDOO\ D PDZOÀ IRU %DOÀGKXUÈ LPPHGLDWHO\ UHSRUWV DQRWKHU DFFRXQW ZKLFK DVVHUWV WKDW KH ZDV DQ $UDE 7KH SRLQW LV WKDW GHVSLWH KLV FHOHEULW\ VWDWXV DQG WKH IDFW WKDW WKH QLVEDK DO1DNKDuÈ ZDV VR RUJDQLFDOO\ D SDUW RI KLV QDPH WKDW E\ LWVHOI LW XQLTXHO\ UHIHUUHG WR KLP LQ WKH UHOHYDQW OLWHUDWXUH WKLV ZDV QRW HQRXJK WR GHFLVLYHO\ LGHQWLI\KLVHWKQLFRULJLQ6LPLODUFDVHVDERXQGLQWKHVRXUFHV
&+$37(57(1
7RWKDWH[WHQWPDQ\RIWKHGLVFUHSDQFLHVWRZKLFK'DQLHOUHIHUVPD\ EH GLVSHOOHG ([FHSW IRU WKH VLQJOH GLVDJUHHPHQW RQ WKH HWKQLF RULJLQ RI WKHQDTÈE6XOD\PÀQLEQ.DWKÈUDO.KX]ÀuÈQR DQGSUREDEO\IHZ RWKHULQVLJQLILFDQWFDVHVWKHRWKHUVDUHQRWUHDOO\LUUHVROYDEOH 6RPH SHUFHLYHG GLVFUHSDQFLHV PD\ EH DWWULEXWHG WR WKH VFKRODUV· PLVXQGHUVWDQGLQJ RI WKH WH[WV 'DQLHO DQG 2PDU PLVXQGHUVWRRG -À.Í 'DQLHO WKRXJKW WKDW -À.Í JDYH WZR VHSDUDWH OLVWV RI WKH QXTDEÀr RQH FRPSULVLQJ RQO\ $UDEV DQG DVFULEHG WR WKH DQWLVKXuË'ÈV DQG WKH RWKHU FRPSULVLQJRQO\PDZÀOÈDQGDVFULEHGWRWKHVKXuËEÈV$QRVWHQVLEO\VOLJKW PLVXQGHUVWDQGLQJ RI WKH QXDQFH RI WKH ODQJXDJH DQG RI -À.Í·V VW\OH PDNHV DOO WKH GLIIHUHQFH :KDW -ÀLÍ DFWXDOO\ GLG ZDV SUHVHQW RQH LQFRPSOHWH OLVW RI WKH QXTDEÀr UHDG IURP WZR HQGV 7KH SUR$UDE VSRNHVPDQ FLWHV RQO\ WKH VHYHQ $UDE QDTÈEV WKH SURPDZÀOÈ VSRNHVPDQ PHQWLRQV RQO\ WKUHH RI WKH ILYH PDZÀOÈ QDTÈEV 7KDW LV DV IDU DV FLWLQJ QDPHV ZHQW ,Q D IODUH RI HQWKXVLDVP WKH .KXUÀVÀQLWH ZKR LQ -ÀLÍ·V WH[W UHSUHVHQWV WKH ,UDQLDQV LH QHLWKHU WKH $UDEV QRU WKH PDZÀOÈ FODLPVDOOWZHOYHQDTÈEVDQGVHYHQW\GÀuÈV +RZ 2PDU FRQVWUXHG WKDW ´DFFRUGLQJ WR -ÀLÍ DQG $]GÈ DOO WKH WZHOYH 1DTÈEV ZHUH $UDEµ DQG $UDE RWKHU@ GLVWULFWV DQG UHIUDLQ IURP DGPLWWLQJ WKHP XQWLO WKRVH ZKRP \RX LQVWDOO WRGD\ DV QXTDEÀr JHW WR NQRZ WKHP \RXU IROORZLQJZLOOEHIHZ\À$EÀ+ÀVKLPLGKÀZDTDIWDDPUDPDQIÈDONXZDUZD ODP WDTEDOKXP DWWÀ \DuULIDKXP PDQ WXQDTTLE DO\DZPD TDOOD WDEDuXND µ Ë8À LEQ.DuEVHFRQGHGKLP 'HVSLWH %XND\U·V REVHVVLRQ ZLWK VHFUHF\ DV DQ RYHUULGLQJ FRQVLGHUDWLRQRYHUTXDQWLW\KHKDGOLWWOHFKRLFHEXWWRFRPSURPLVH+H GLOXWHG WKH SULPDF\ RI WKH QDTÈE 5DQN SHU VH E\ VSUHDGLQJ LW RYHU WKH H[SDQVH RI DOO GLVWULFWV ZKHUH SURSDJDQGLVWV RSHUDWH DQG KH OLPLWHG WKH MXULVGLFWLRQRIWKHERDUGRIQDTÈEVE\UHVWULFWLQJLWWR0DUZ,QHIIHFW KHRIIHUHGDQHZGHILQLWLRQDQGDZLGHUSHUVSHFWLYHKHUHVSRQGHGWRDO u$OÀr HPSRZHUHG@RQO\RYHUWKRVHZKRDUH LQ0DUZDQGWKRVHZKRFRPHWRLWLQUHVSRQVHWR\RXUSURSDJDQGLVWVZKR DUHLQLW$VIRUDOORWKHUGLVWULFWVHYHU\SURSDJDQGLVWLQWKHPLVDQDTÈEKH FKRRVHV IRU KLPVHOI IURP LWV LQKDELWDQWV WUXVWZRUWK\ SHRSOH ZKR ZRXOG YHULI\ IRU KLP WKH >WUXWK RI WKH@ PDWWHU >DERXW@ WKRVH ZKR UHVSRQG >IDYRUDEO\@WRKLPDOTDZOuDOÀPÀTXOWXPÀZDOÀNLQQDDOQXTDEÀrLQQDPÀKXP uDOÀPDQEL0DUZZDPDQDWÀKÀPXMÈEDQOLPDQIÈKÀPLQGXuÀWLNXPZDDPPÀVÀrLU
+H ZDV D UHVLGHQW RI RI WKH 0DUZ YLOODJH 0ÀNKXZÀQ ZKHUH $EË0XVOLPZRXOG ODWHU HVWDEOLVK KLV WUHQFK DIWHU OHDYLQJ 6XOD\PÀQ LEQ .DWKÈU·V YLOODJH DEDUÈ ,, SS 2QDOu$OÀrKLVKRXVHDQGWKH6XJKGLDQFRQQHFWLRQVHHVXSUDSS $NKEÀUSOLQHV
&+$37(57+,57((1
DONXZDUIDNXOOGÀuL\DKELKÀQDTÈE\DNKWÀUOLQDIVLKLXPDQÀrPLQDKOLKÀ>:¿&.Ë3 ODKXDPUDPDQ\XMÈEXK
7RWKLVVDWLVIDFWRU\FRPSURPLVHWKHSDUWLVDQVXQDQLPRXVO\FRQVHQWHG 7KLV H[SODLQV %DOuDPÈ·V DVVHUWLRQ WKDW WKH ´SDUWLVDQV FROOHFWHG UHYHQXH IURP IRUW\ GLIIHUHQW WRZQV HDFK RI ZKLFK KDG LWV RZQ QDTÈEµ $QG LW PD\SDUWLDOO\H[SODLQWKHVOLJKWGLIIHUHQFHVLQWKHOLVWVZKLFKVRPHRIWKH RWKHUVRXUFHVJLYHRIWKHQDTÈEV 7KLVLVQRWWRVD\WKDWWKHQXTDEÀrRI0DUZORVWWKHLUGLVWLQFWLRQ7KH\ SUREDEO\ ZHUH D OLWWOH PRUH WKDQ ILUVWV DPRQJ D ODUJHU SRRO RI HTXDOV GXULQJ WKH FODQGHVWLQH VWDJH $ JUHDW PHDVXUH RI WKHLU SURPLQHQFH LV FHUWDLQO\ RZHG WR WKH SROLWLFDO FHQWUDOLW\ RI 0DUZ DQG WR KLVWRULRJUDSKLFDODWWHQWLRQ%XW%XND\U·VFRQFHVVLRQWRDOu$OÀr·VGHPDQG FHUWDLQO\ UHGXFHV RU HYHQ DQQXOV WKH VLJQLILFDQFH RI WKH DEVHQFH IURP WKH OLVW RI FHUWDLQ QDPHV VXFK DV DOu$OÀr·V RZQ RU WKDW RI $EË u$ZQ u$EG DO0DOLN LEQ 7&1:7/&3È 3UREDEO\QRQ$UDEQRUHODWLRQWRRWKHUPHPEHUVNQRZQIURP :7/À33DUWLFLSDWHGLQ4DDEDK·VFDPSDLJQ1RVSHFLILFOR\DOW\FDQEHDVFHUWDLQHG 1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHHLJKWKJUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7SSFI&'&7È,,,SS 'Ë&u)&1-&7&+3UREDEO\QRQ$UDEQRUHODWLRQWRRWKHUPHPEHUVNQRZQ2QHRIWKH):uÀ9 &1):uÀ9 )HDWXUHG LQ FRYHUW DFWLRQ RQO\ DIWHU WKH JHQHUDO DVVHPEO\ RI FD 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH HLJKWK JUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7SS 'Ë -À0.7 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 7RRN XS PLOLWDU\DGPLQLVWUDWLYH DSSRLQWPHQW LQ WKH QHZ UHJLPH $ VXUYLYDOLVWFRQYLFWLRQOHVVWHDP SOD\HU 1RWKLQJ LVNQRZQDERXWKLVSHUVRQDOGHVWLQ\ 1DPHUHFRJQLWLRQRIWKHHLJKWKJUDGH(2+5QLO+HDSSHDUVLQWZRRXWRIWKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV DEDUÈ ,,, S -&-&'È À7ÈNK DO,VOÀ2 9,,, S 'Ë-&7ÀÈ13UREDEO\QRQ$UDEQRUHODWLRQWRRWKHUPHPEHUVNQRZQ3DUWLFLSDWHG LQ WKH VSHFWDFOH RI WKH ILUVW HUXSWLRQ DVVXPLQJ D KLJKSURILOH UROH LQ WKH VSHFWDFOH SDUWLFLSDWHGLQWKHLPPHQVHSXUJHVLQWKHGLVWULFWVLQWKH0DUZVNLUPLVKHVIROORZLQJ WKH ILUVWHUXSWLRQ3DUWLFLSDWHGLQ4DDEDK·VFDPSDLJQIHDWXUHGLQDUROHLQ.ËIDK XSRQDIWHU WKH .KXUÀVÀQL\\DK·V DGYHQW WKHUHLQ SDUWLFLSDWHG LQ SRVW.ËIDK PLOLWDU\ FDPSDLJQVVRPHZKHUHEHWZHHQ:ÀVLDQG(J\SW$Q$EË0XVOLPOR\DOLVW1RWKLQJ LVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHHLJKWKJUDGH(2+
3526232*5$3+,&$/
5 QLO +H DSSHDUV LQ IRXU RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 2U $EË 6DuÈGRU6KDUÀÈO 0-'À7SS&'&7È,,S,,,SS $&u6Ë'È&r7È0-,,S-&-&'ÈÀ7ÈNKDO,VOÀ29,,,S 'Ë :) &1-:7À8À3È 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 7RRNXSPLOLWDU\DGPLQLVWUDWLYHDSSRLQWPHQWLQWKHQHZUHJLPH1RVSHFLILFOR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LVNQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPHUHFRJQLWLRQ RIWKHHLJKWKJUDGH(2+5QLO+HDSSHDUVLQIRXURXWRIWKHWZHQW\WKUHHDQG VXQGU\ VRXUFHV DEDUÈ ,,, S &1À)-:7È 38À' &1 8-7À+ S $&u6Ë'È &r7È0-,,S-&-&'ÈÀ7ÈNKDO,VOÀ2;S 'Ë :7À' 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 2QH RI WKH ):uÀ9 &1):uÀ9 $Q $EË 0XVOLP OR\DOLVW 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPHUHFRJQLWLRQRIWKHHLJKWKJUDGH(2+5QLO+HDSSHDUVLQWZRRXWRIWKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7 S &1À)-:7È 38À' &1 8-7À+ S 'Ë &1&-2 .'3 u .>>&- &1 À-.1È 1RQ$UDE 2&6.'3-&9-.'3:'&-&1-:?ÀuÈ 1RQ$UDERI-:?Àu&-RI>.r RI À.'3&1:u2À3&1ÀrÈ '˼:9À2&-$UDERI&'-À3RI&>>.rRI À8&1¹&''È (WKQLFDOO\XQGHWHUPLQHGRI¹&''&-RI.KLQGLIRI0XÉDU QRUHODWLRQWRRWKHUPHPEHUVNQRZQ/LVWHGDV)ÀuÈRQO\LQ$NKEÀU·VDOWHUQDWLYHOLVWRI WKH ¶6HYHQW\ :uÀ9· 3DUWLFLSDWHG LQ WKH VSHFWDFOH RI WKH ILUVW HUXSWLRQ DVVXPLQJ D KLJKSURILOH UROH LQ WKH VSHFWDFOH $Q $EË 0XVOLP OR\DOLVW 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH IRXUWK JUDGH ( 2 + 5 QLO +H DSSHDUV LQ WZR RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7 S &'&7È ,,S &00À7&1 3¿&7È 3UREDEO\QRQ$UDE2&' .'3 &1 8-u&9- (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 3DUWLFLSDWHG LQ 4DDEDK·V FDPSDLJQ SDUWLFLSDWHG LQ SRVW.ËIDK PLOLWDU\ FDPSDLJQV VRPHZKHUH EHWZHHQ :ÀVL DQG (J\SW 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH VHYHQWKJUDGH(2+5QLO+HDSSHDUVLQWZRRXWRIWKHWZHQW\WKUHHDQGVXQGU\ VRXUFHV 0-'À7S&'&7È,,,SS 1&É1 .'3 ¼:2&>) &1:7À)È (WKQLFDOO\ XQGHWHUPLQHG RI :7À) RI &)-./ RI 2À3 &1ÀrÈ &1Ë8È 'Ë &1u ''À8 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ IURP 'È1À3.'3u ') 11À-.'3 82Àr&1-:?ÀuÈ 'Ë:ÉÀ1&-$UDERI +¿ÀRI-:?Àu&-RI 2À3 1RQ$UDE 2&À7(WKQLFDOO\XQGHWHUPLQHGQRUHODWLRQWRRWKHUPHPEHUVNQRZQ 2QH RI WKH ):uÀ9 &1):uÀ9 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH (2+5QLO +HDSSHDUVLQRQHRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7S À7Ë3 .'3 &1¸.u6 &1:+À2À3 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ/LVWHGDV)ÀuÈRQO\LQ$NKEÀU·VDOWHUQDWLYHOLVWRIWKH¶6HYHQW\:uÀ9·1RVSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH VHYHQWK JUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7S 1&>9-&2.'3$&?È).'3&>8À33UREDEO\QRQ$UDEQRUHODWLRQWRRWKHUPHPEHUV NQRZQ IURP 0DUZ:72:?+&77&- 3DUWLFLSDWHG LQ WKH VSHFWDFOH RI WKH ILUVW HUXSWLRQ $Q $EË 0XVOLP OR\DOLVW 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPHUHFRJQLWLRQRIWKHWKLUGJUDGH (2+5QLO +HDSSHDUVLQRQHRXWRIWKH WZHQW\WKUHHDQGVXQGU\VRXUFHVDEDUÈ,,S 1&>9-&2 .'3 %.>À) &1-:?ÀuÈ (WKQLFDOO\ XQGHWHUPLQHG RI -:?Àu&- RI >À8-.'3¼&'È'&1ÀrÈ 3UREDEO\$UDERI&>>.rRI).'3&1-&À'&1&-7È (WKQLFDOO\XQGHWHUPLQHGRI&-7À3RI:É Àu&-RI >&-(WKQLFDOO\XQGHWHUPLQHGQRUHODWLRQWRRWKHUPHPEHUVNQRZQ IURP0DUZ ÀuÈ LQDFFRUGDQFHZLWK $NKEÀU·VILUVW RI WZROLVWVRI WKH ¶6HYHQW\:uÀ9·
$33(1',;21(
1RVSHFLILFOR\DOW\FDQEHDVFHUWDLQHG1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\ 1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH(2+5QLO+HDSSHDUVLQRQHRXWRIWKH WZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7S '7À-È2 &1:7&8-È 3UREDEO\ QRQ$UDE 2&&7 RI &79,S,EQDO$WKÈU,9SS &2È1 .'3 &-7À3 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 3DUWLFLSDWHG LQ 4DDEDK·V FDPSDLJQ 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV DEDUÈ,,,S .'7ÀrÈ1 .'3 $&>À .'3 :77&- &1 &/&1È $UDE RI &/È1&- RI 32À7 RI 7&- .'3 À1.0 &1À?.3È &1&72&- .'3 -À?.2 .'3 -:?&>2&- &1&-8-&1È 'Ë &1u ''À8 $UDE RI 1DKVKDO RI &2È2RI.KLQGLIRI0XÉDUUHODWHGWRVRPHRWKHUPHPEHUVIURP0DUZDOË)- 3DUWLFLSDWHGLQWKHLPPHQVHSXUJHVLQWKHGLVWULFWVLQWKH0DUZVNLUPLVKHVIROORZLQJ WKH ILUVW HUXSWLRQ 7RRN XS PLOLWDU\DGPLQLVWUDWLYH DSSRLQWPHQW LQ WKH QHZ UHJLPH $ UHSUHVHQWDWLYH RI VXQGU\ VSHFLDO LQWHUHVWV 'LHG LQ JUDFH IRXQGHU RI D G\QDVW\ RI ¶ '3Àr·1DPHUHFRJQLWLRQRIWKHILUVWJUDGH(2+5QLO+HDSSHDUVLQHOHYHQRXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV DEDUÈ ,, SS ,,, SS ,EQDO.DOEÈ-DPKDUDKS&DVNHO ,S,,S$]GÈS$&u6Ë'È &r7È0- 55 ,EQ 4XWD\EDK 0DuÀULI S &8uË)È ,9 S '3 u ') &''.- ,9 S ,EQ ¼DEÈE SS %DJKGÀGÈ 7DrUÈNK %DJKGÀG9,,,S È3&>&1&2È2È 'Ë&u+&7$UDERI8PUXrDO4D\VRI&2È2 RI .KLQGLI RI 0XÉDU UHODWHG WR VRPH RWKHU PHPEHUV IURP 0DUZ &6È' LQ DFFRUGDQFH ZLWK $NKEÀU·V VWDQGDUG OLVW DOVR OLVWHG DV 3&6È' LQ RWKHU WKDQ $NKEÀU·V VWDQGDUGOLVW)HDWXUHGLQFRYHUWDFWLRQERWKEHIRUHDQGDIWHUWKHJHQHUDODVVHPEO\RI FD 3DUWLFLSDWHG LQ WKH VSHFWDFOH RI WKH ILUVW HUXSWLRQ 'LVSOD\HG DQWL $EË 0XVOLP VHQWLPHQW ZLWKRXW JRLQJ LQWR RSHQ PXWLQ\ .LOOHG E\ $EË 0XVOLP 1DPHUHFRJQLWLRQRIWKHILUVWJUDGH(2+5RIWKHVHFRQGJUDGH+HDSSHDUVLQ HOHYHQRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7SS DEDUÈ,,SS
&1À)-:7È 38À' &1 8-7À+ SS ,EQ ¼D]P -DPKDUDK S ,EQDO.DOEÈ-DPKDUDKS&DVNHO ,S,,S$]GÈSS È3&.r RI &) .'3 -&6È6 &1:1&2È 3UREDEO\ QRQ$UDE 2&&7È &1&7&79,S,EQDO$WKÈU,9SS :&22&) .'3 &u) 'Ë 82ÀuÈ1 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ IURP :7/À3 )HDWXUHG LQ FRYHUW DFWLRQ RQO\ DIWHU WKH JHQHUDO DVVHPEO\ RI FD 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHILIWKJUDGH(2+5 QLO +HDSSHDUVLQRQHRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7SS :&22&) .'3 -.-À' &1À?.3È (WKQLFDOO\ XQGHWHUPLQHG RI À?.3 RI &2È2 RI .KLQGLIRI0XÉDUQRUHODWLRQWRRWKHUPHPEHUVNQRZQ3DUWLFLSDWHGLQSRVW.ËIDK PLOLWDU\FDPSDLJQVVRPHZKHUHEHWZHHQ:ÀVLDQG(J\SW1RVSHFLILFOR\DOW\FDQEH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH IRXUWKJUDGH(2+5QLO+HDSSHDUVLQRQHRXWRIWKHWZHQW\WKUHHDQGVXQGU\ VRXUFHV,EQ$uWKDP9,,,S7KHUHIHUHQFHLVRZHGWR%ODQNLQVKLS´DOu 7&'+È -:7À8À3µS :&22&) .'3 ¸:1 'Ë u 2À7&- 1RQ$UDE 2&.r RI 7 'Ë &1¸&'À $UDE RI u 9-2À3 RI $]G RI 2&- 1RQ$UDE 2&&>3&- &1&2È2. 'Ë u >&>3&- $UDE RI 8PUXr DO4D\V RI &2È2RI.KLQGLIRI0XÉDUUHODWHGWRVRPHRWKHUPHPEHUVIURP0DUZ&6È'LQ DFFRUGDQFH ZLWK $NKEÀU·V VWDQGDUG OLVW DOVR OLVWHG DV 3&6È' LQ RWKHU WKDQ $NKEÀU·V VWDQGDUGOLVW)HDWXUHGLQFRYHUWDFWLRQERWKEHIRUHDQGDIWHUWKHJHQHUDODVVHPEO\RI FD 3DUWLFLSDWHG LQ WKH LPPHQVH SXUJHV LQ WKH GLVWULFWVLQ WKH 0DUZ VNLUPLVKHV IROORZLQJ WKH ILUVW HUXSWLRQ DSSRLQWHG WR RIILFH E\ $EË 0XVOLP LQ FRQVROLGDWLRQ RI WKH LQLWLDO DQG LPPHGLDWHO\ VXFFHVVLYH WHUULWRULDO JDLQV 3DUWLFLSDWHG LQ 4DDEDK·V FDPSDLJQ IHDWXUHG LQ D UROH LQ .ËIDK XSRQDIWHU WKH .KXUÀVÀQL\\DK·V DGYHQW WKHUHLQ SDUWLFLSDWHG LQ SRVW.ËIDK PLOLWDU\ FDPSDLJQV VRPHZKHUHEHWZHHQ:ÀVLDQG(J\SW7RRNXSPLOLWDU\DGPLQLVWUDWLYHDSSRLQWPHQW LQ WKH QHZ UHJLPH $ VXUYLYDOLVWFRQYLFWLRQOHVVWHDP SOD\HU 'LHG LQ JUDFH 1DPH UHFRJQLWLRQRIWKHILUVWJUDGH(2+5QLO+HDSSHDUVLQILIWHHQRXWRIWKHWZHQW\ WKUHHDQGVXQGU\VRXUFHV 0-'À7SSDEDUÈ,, SS,,,SS &1À)-:7È 38À'&1 8-7À+SS À.Í&3À6.' 55,EQ¼DEÈESS,EQ¼D]P-DPKDUDKS ,EQ DO.DOEÈ -DPKDUDK S &DVNHO , S ,, S $]GÈ SS -&1È+&- ,, SS È3&2Ë3 (WKQLFDOO\ XQGHWHUPLQHG QRUHODWLRQWRRWKHUPHPEHUVNQRZQ 7RRNXSPLOLWDU\DGPLQLVWUDWLYHDSSRLQWPHQWLQWKHQHZUHJLPH$UHSUHVHQWDWLYHRI VXQGU\ VSHFLDO LQWHUHVWVGLVSOD\HG DQWL$EË 0XVOLP VHQWLPHQW ZLWKRXW JRLQJ LQWR RSHQPXWLQ\.LOOHGE\u$EG$OOÀKLEQu$OÈ1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV DEDUÈ,,,S Ë8À.'3Ë8À&1:7/À3È 3UREDEO\QRQ$UDEQRUHODWLRQWRRWKHUPHPEHUVNQRZQ IURP :7/À3 )HDWXUHG LQ FRYHUW DFWLRQ RQO\ EHIRUH WKH JHQHUDO DVVHPEO\ RI FD 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHILIWKJUDGH(2+5QLO+HDSSHDUVLQ RQHRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7S Ë8À .'3 ¸:'&> 'Ë :u&>2 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 3DUWLFLSDWHG LQ WKH VSHFWDFOH RI WKH ILUVW HUXSWLRQ SDUWLFLSDWHG LQ WKH LPPHQVH SXUJHV LQ WKH GLVWULFWVLQ WKH 0DUZ VNLUPLVKHV IROORZLQJ WKH ILUVW HUXSWLRQ $Q $EË 0XVOLP OR\DOLVW 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH ILIWK JUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHHDQGVXQGU\VRXUFHVDEDUÈ,,S Ë8À .'3 -À'.9 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 3DUWLFLSDWHG LQ 4DDEDK·V FDPSDLJQ 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7S :¿u&'.'3&>8&1¼&3&+È (WKQLFDOO\XQGHWHUPLQHGRI¼&3È+&-RI%DNURI5DEÈuDK QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ IURP 0DUZ /LVWHG DV 3&ÍÈ7 3&6È' RQO\ LQ $NKEÀU·VVHFRQGOLVWRIWZHQW\RQHÀuÈLQDFFRUGDQFHZLWK$NKEÀU·VILUVWRIWZROLVWVRI WKH ¶6HYHQW\ :uÀ9· 3DUWLFLSDWHG LQ WKH VSHFWDFOH RI WKH ILUVW HUXSWLRQ DVVXPLQJ D KLJKSURILOH UROH LQ WKH VSHFWDFOH SDUWLFLSDWHG LQ WKH LPPHQVH SXUJHV LQ WKH GLVWULFWVLQ WKH 0DUZ VNLUPLVKHV IROORZLQJ WKH ILUVW HUXSWLRQ DSSRLQWHG WR RIILFH E\ $EË 0XVOLP LQ FRQVROLGDWLRQ RI WKH LQLWLDO DQG LPPHGLDWHO\ VXFFHVVLYH WHUULWRULDO JDLQV $Q $EË0XVOLPOR\DOLVW1RWKLQJLVNQRZQ DERXWKLVSHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQRIWKHIRXUWKJUDGH(2+5QLO+HDSSHDUVLQWZRRXWRIWKHWZHQW\ WKUHH DQG VXQGU\ VRXUFHV 0-'À7 SS DEDUÈ ,, SS
$33(1',;21(
:¿u&' .'3 %:7&>6 .'3 8u&) 1RQ$UDE 2&&' .'3 u 9-2À3 (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 2QH RI WKH ):uÀ9 &1):uÀ9 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH(2+ 5QLO+HDSSHDUVLQRQHRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7S 1:8&>>&'.'3%:-&>7.'3u 27&1¹&''È 'Ë:81.2$UDERI¹&''&-RI.KLQGLIRI 0XÉDUQRUHODWLRQWRRWKHUPHPEHUVNQRZQ&ÍÈ73&6È'LQDFFRUGDQFHZLWK$NKEÀU·V VWDQGDUG OLVW RI WZHOYH DOVR OLVWHG DV VXFK LQ $NKEÀU·V VHFRQG OLVW RI WZHQW\ RQH 3DUWLFLSDWHGLQ4DDEDK·VFDPSDLJQ7RRNXSPLOLWDU\DGPLQLVWUDWLYHDSSRLQWPHQW LQ WKH QHZ UHJLPH $ VXUYLYDOLVWFRQYLFWLRQOHVVWHDP SOD\HU 'LHG LQ JUDFH IRXQGHU RIDG\QDVW\RI¶ '3Àr·1DPHUHFRJQLWLRQRIWKHILUVWJUDGH(2+5RIWKHVHFRQG JUDGH+HDSSHDUVLQILIWHHQRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7SS DEDUÈ ,, SS ,,, SS &1À)-:7È 38À' &1 8-7À+ SS ,EQ¼D]P-DPKDUDKS,EQDO.DOEÈ-DPKDUDKS &DVNHO ,S,,S$]GÈSS,EQ¼DEÈESS-&1È+&-,, SS &78-À0-È S $&u6Ë'È &r7È0- 55 ,EQ4XWD\EDK0DuÀULIS&8uË)È,9SS%DJKGÀGÈ7DrUÈNK %DJKGÀG;,,,S-&-&'ÈÀ7ÈNKDO,VOÀ29,,,S,;S;SS ,EQ DO$WKÈU ,9 SS 9 SS 'À76:3È,S :81.2 &1./.89À3È 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 2QH RI WKH ):uÀ9 &1):uÀ9 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH HLJKWK JUDGH ( 2 + 5 QLO +H DSSHDUVLQRQHRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHV 0-'À7S :81.2 &1 7,-&)È 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHUPHPEHUV NQRZQIURP 0DUZ DOË)- 7RRN XS PLOLWDU\DGPLQLVWUDWLYH DSSRLQWPHQW LQ WKH QHZ UHJLPH 1RVSHFLILFOR\DOW\FDQEHDVFHUWDLQHG1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\ 1DPHUHFRJQLWLRQRIWKHHLJKWKJUDGH(2+5QLO+HDSSHDUVLQRQHRXWRIWKH WZHQW\WKUHHDQGVXQGU\VRXUFHVDEDUÈ,,,S &É1&- .'3 :u&>2 .'3 -À?.2 &1&-8-&1È 3UREDEO\ $UDE RI 1DKVKDO RI &2È2 RI .KLQGLI RI 0XÉDU UHODWHG WR VRPH RWKHU PHPEHUV IURP 0DUZ DOË)- 7RRN XS PLOLWDU\DGPLQLVWUDWLYH DSSRLQWPHQW LQ WKH QHZ UHJLPH $ UHSUHVHQWDWLYH RI VXQGU\ VSHFLDO LQWHUHVWV $SSHDUHG LQ ODWHU UROHV LQ WKH VHUYLFH RI WKH VWDWH EXW RI KLV ILQDO GHVWLQ\ QRWKLQJ LV NQRZQ 1DPH UHFRJQLWLRQ RI WKHILUVW JUDGH(2 + 5 QLO +H DSSHDUV LQ WZR RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV DEDUÈ ,,, SS &1À)-:7È 38À'&1 8-7À+SS 1&É7 .'3 -À3.2 &1ÀrÈ 'Ë -À3.2 (WKQLFDOO\ XQGHWHUPLQHG RI &>>.r RI 2 &1¹&''È (WKQLFDOO\ XQGHWHUPLQHG RI ¹&''&- RI .KLQGLI RI 0XÉDUQRUHODWLRQWRRWKHUPHPEHUVNQRZQ3DUWLFLSDWHGLQWKHLPPHQVHSXUJHVLQ WKH GLVWULFWVLQ WKH 0DUZ VNLUPLVKHV IROORZLQJ WKH ILUVW HUXSWLRQ $Q $EË 0XVOLP OR\DOLVW1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHIRXUWK JUDGH ( 2 + 5 QLO +H DSSHDUV LQ WZR RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHVDEDUÈ,,S,EQDO$WKÈU,9S
3526232*5$3+,&$/
1&É7.'3¸:'.'3u¯2.7&1&2È2È $UDERI8PUXrDO4D\VRI&2È2RI.KLQGLI RI 0XÉDU QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ IURP 0DUZ /LVWHG DV 3&ÍÈ7 3&6È' RQO\LQ$NKEÀU·VVHFRQGOLVWRIWZHQW\RQHÀuÈLQDFFRUGDQFHZLWK$NKEÀU·VILUVWRIWZR OLVWVRIWKH ¶6HYHQW\:uÀ9· )HDWXUHG LQFRYHUW DFWLRQRQO\ DIWHU WKHJHQHUDODVVHPEO\ RIFD3DUWLFLSDWHGLQWKHVSHFWDFOHRIWKHILUVWHUXSWLRQSDUWLFLSDWHGLQ WKH LPPHQVH SXUJHV LQ WKH GLVWULFWVLQ WKH 0DUZ VNLUPLVKHV IROORZLQJ WKH ILUVW HUXSWLRQ DSSRLQWHG WR RIILFH E\ $EË 0XVOLP LQ FRQVROLGDWLRQ RI WKH LQLWLDO DQG LPPHGLDWHO\ VXFFHVVLYH WHUULWRULDO JDLQV $Q $EË 0XVOLP OR\DOLVW 1RWKLQJ LV NQRZQ DERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHILUVWJUDGH(2+5QLO+H DSSHDUV LQ IRXU RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7 SS DEDUÈ,,SS,EQDO.DOEÈ-DPKDUDKS&DVNHO ,S,,S,EQDO$WKÈU,9SS À+.u &1&71&- &1 À-.1È (WKQLFDOO\ XQGHWHUPLQHG RI À-.1&- RI 4D\V RI 0XÉDU QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 2QH RI WKH ):uÀ9 &1):uÀ9 )HDWXUHG LQ FRYHUW DFWLRQ RQO\ DIWHU WKH JHQHUDO DVVHPEO\ RI FD $Q $EË 0XVOLP OR\DOLVW1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHIRXUWK JUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7SS &¿7 .'3 u ') &1¼&2È) .'3 u ') 11À- &1-:?ÀuÈ 3UREDEO\ $UDE RI -:?Àu&- RI &7 9,SS'3-&11.0À39S,EQDO$WKÈU9S &¿7 .'3 &8-È) (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 7RRN XS PLOLWDU\DGPLQLVWUDWLYH DSSRLQWPHQW LQ WKH QHZ UHJLPH $Q $EË 0XVOLP OR\DOLVW .LOOHG LQ WKH VHUYLFH RI WKH QHZ UHJLPH 1DPH UHFRJQLWLRQ RI WKH VHYHQWK
$33(1',;21(
JUDGH ( 2 + 5 QLO +H DSSHDUV LQ WKUHH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHVDEDUÈ,,,S-&-&'ÈÀ7ÈNKDO,VOÀ29,,,S,EQDO$WKÈU,9S :¿&>7 .'3 &1:9&+.? .'3 u 9-2À3 &1:?&3È $UDE RI 0X]D\QDK RI .KLQGLI RI 0XÉDU UHODWHG WR VRPH RWKHU PHPEHUV IURP 0DUZ 3DUWLFLSDWHG LQ SRVW.ËIDK PLOLWDU\FDPSDLJQVVRPHZKHUHEHWZHHQ:ÀVLDQG(J\SW$OLJQHGKLPVHOIZLWKu$EG $OOÀKLEQu$OÈ1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKH ILUVWJUDGH(2+5RIWKHVHFRQGJUDGH+HDSSHDUVLQWKUHHRXWRIWKHWZHQW\ WKUHH DQG VXQGU\ VRXUFHV DEDUÈ ,,, S &1À)-:7È 38À' &1 8-7À+ S ,EQDO.DOEÈ-DPKDUDK&DVNHO ,S,,S &&'&-.'3-&'È'.'3-À1.)&1ÀrÈ 'Ëu ')&1¼&2È)$UDERI&'-À3RI&>>.r RI > &1:81. 'Ë u '&>)&- (WKQLFDOO\ XQGHWHUPLQHG RI 0XVOL\DK RI &)-./ RI Í.'3&//À/.'3&1:89&+ .'3 &-À &1ÀrÈ 'Ë &1&-)È (WKQLFDOO\ XQGHWHUPLQHG RI &>>.r RI 2 .'3 :'&>7&- &1-&>'À3È 'Ë &1&>1Àr $UDE RI -&>'À3 RI %DNU RI5DEÈuDKQRUHODWLRQWRRWKHUPHPEHUVNQRZQ$SSRLQWHGWRRIILFHE\$EË0XVOLP LQ FRQVROLGDWLRQ RI WKH LQLWLDO DQG LPPHGLDWHO\ VXFFHVVLYH WHUULWRULDO JDLQV $ UHSUHVHQWDWLYH RI VXQGU\ VSHFLDO LQWHUHVWV 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH ILUVW JUDGH ( 2 + 5 RI WKH ILUVW JUDGH +H DSSHDUV LQ WZR RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV DEDUÈ ,, SS ,EQDO$WKÈU,9S $&8À72&>.rRI>.rRIÀ) .'3 &77Ë0- 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 3DUWLFLSDWHG LQ 4DDEDK·V FDPSDLJQ 1R VSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHVHYHQWKJUDGH ( 2 + 5 QLO +H DSSHDUV LQ RQH RXW RI WKH WZHQW\WKUHH DQG VXQGU\ VRXUFHV 0-'À7S %.>À) .'3 u·8& (WKQLFDOO\ XQGHWHUPLQHG QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ 3DUWLFLSDWHGLQWKHLPPHQVHSXUJHVLQWKHGLVWULFWVLQWKH0DUZVNLUPLVKHVIROORZLQJ WKHILUVWHUXSWLRQ1RVSHFLILFOR\DOW\FDQEHDVFHUWDLQHG1RWKLQJLVNQRZQDERXWKLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH VHYHQWK JUDGH ( 2 + 5 QLO +H DSSHDUVLQWZRRXWRIWKHWZHQW\WKUHHDQGVXQGU\VRXUFHVDEDUÈ,,S,EQ DO$WKÈU,9S %.>À) .'3 .8-0À3 1RQ$UDE 2&>À7&1 ?)È (WKQLFDOO\XQGHWHUPLQHGRI$]GRIÀ) .'3 %:7À7&- .'3 u 6'&- &1 6&u &1:8-&>7È $UDE RI 4XVKD\U RI 4D\V RI 0XÉDUQRUHODWLRQWRRWKHUPHPEHUVNQRZQIURPÈ8-À5Ë7$SSRLQWHGWRRIILFHE\ $EË 0XVOLP LQ FRQVROLGDWLRQ RI WKH LQLWLDO DQG LPPHGLDWHO\ VXFFHVVLYH WHUULWRULDO JDLQV 3DUWLFLSDWHG LQ 4DDEDK·V FDPSDLJQ $ UHSUHVHQWDWLYH RI VXQGU\ VSHFLDO LQWHUHVWV1RWKLQJLVNQRZQDERXWKLVSHUVRQDOGHVWLQ\1DPHUHFRJQLWLRQRIWKHILUVW JUDGH(2+5RIWKHVHFRQGJUDGH+HDSSHDUVLQWKUHHRXWRIWKHWZHQW\WKUHH DQGVXQGU\VRXUFHVDEDUÈ,,S,,,SS,EQDO.DOEÈ-DPKDUDKS &DVNHO ,S,,S,EQDO$WKÈU,9S %.>À)&- .'3 &-7À3 &1À1&6À3È 3UREDEO\ QRQ$UDE QR UHODWLRQ WR RWKHU PHPEHUV NQRZQ/LVWHGDV)ÀuÈRQO\LQ$NKEÀU·VDOWHUQDWLYHOLVWRIWKH¶6HYHQW\:uÀ9·1RVSHFLILF OR\DOW\ FDQ EH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQRIWKHILIWKJUDGH(2+5QLO+HDSSHDUVLQRQHRXWRIWKHWZHQW\ WKUHHDQGVXQGU\VRXUFHV 0-'À7S
3526232*5$3+,&$/
%:-&>7 .'3 :&22&) .'3 ¼&>>À3 &1 ?)È $UDE RI -À2.) RI $]G RI 6 .'3 -&'À3 RI %DNU RI 5DEÈuDKUHODWHGWRVRPHRWKHUPHPEHUV2QHRIWKH):uÀ9&1):uÀ9)HDWXUHGLQFRYHUW DFWLRQRQO\DIWHUWKHJHQHUDODVVHPEO\RIFD1RVSHFLILFOR\DOW\FDQEH DVFHUWDLQHG 1RWKLQJ LV NQRZQ DERXW KLV SHUVRQDO GHVWLQ\ 1DPH UHFRJQLWLRQ RI WKH IRXUWKJUDGH(2+5QLO+HDSSHDUVLQWZRRXWRIWKHWZHQW\WKUHHDQGVXQGU\ VRXUFHV 0-'À7SDEDUÈ,,S
$33(1',;7:2
63(&,$/$33(1',; ,1'(;2)67$7,67,&$/7$%/(6,1$*+$´$*(176µ 6HULHV,.ËIDK&KDSWHU 7DEOH1R
,$ ,$ ,$ ,$ ,$ ,$ ,$
,$ ,$ ,$ ,% ,% ,% ,% ,% ,% ,% ,% ,% ,% ,% ,% ,% ,& ,& ,& ,&
6SHFLILF&ULWHULRQD
3DJLQDWLRQ
$&ULWHULDRI,GHQWLW\
(WKQLF $UDE(WKQLFLW\$WWHVWHG $UDE(WKQLFLW\)DYRUHG $UDE(WKQLFLW\WRWDODVDFFHSWHGLQWKLVVWXG\ 1RQ$UDE(WKQLFLW\$WWHVWHG 1RQ$UDE(WKQLFLW\)DYRUHG 1RQ$UDE(WKQLFLW\VXEWRWDOWKRVHWKXVGHWHUPLQHG 8QGHWHUPLQHG(WKQLFLW\VSHFLILFLQGLFDWRUVWKDWPD\IDFLOLWDWH DQHGXFDWHGJXHVVDEVHQW'HHPHGQRQ$UDE 1RQ$UDE(WKQLFLW\JUDQGWRWDODVDFFHSWHGLQWKLVVWXG\
(WKQLF6RFLR5HOLJLRXV 0DZÀ1ÈQRQ$UDEVDIILOLDWHGWR$UDEWULEHV &RQYHUWVDOOQRQ$UDEVDQGQRQPDZÀ1È %&ULWHULDRI9LVLELOLW\DQG5HFRJQLWLRQ
151DPH5HFRJQLWLRQ +LJK1DPH5HFRJQLWLRQ*UDGHV 0HGLXP1DPH5HFRJQLWLRQ*UDGHV /RZ1DPH5HFRJQLWLRQ*UDGHV²
(2+5([WUD2UJDQL]DWLRQDO+LVWRULRJUDSKLFDO5HFRJQLWLRQ (2+5*UDGH (2+5*UDGH (2+5*UDGH (2+5$OO3RVLWLYH*UDGHV² (2+51HJDWLYH*UDGH
,2+5,QWUD2UJDQL]DWLRQDO+LVWRULRJUDSKLFDO5HFRJQLWLRQ ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHRQO\ &&ULWHULDRI(TXLWDELOLW\%HWZHHQ&RQWULEXWLRQVDQG)RUWXQHV .LQVPHQ,QYROYHPHQW )RXQGHUVRI$EQÀr'\QDVWLHV *RYHUQPHQW$SSRLQWPHQWVDQG&RPPLVVLRQV $EË0XVOLP/R\DOLVWV
3DJLQDWLRQ LQ WKLV FROXPQ UHIHUV WR $JKD ¶$JHQWV· 6HH DOVR VXSUD SDUW WKUHH IRUHZRUG
7DEOH1R
,& ,& ,& ,' ,' ,' ,' ,( ,( ,( ,) ,) ,) ,)
63(&,$/$33(1',;
6SHFLILF&ULWHULRQD
$EË0XVOLP V+LJK3URILOH9LFWLPV $O0DQ¿ËU V+LJK3URILOH9LFWLPV 'HVWLQLHV*HQHUDOO\.QRZQ '&ULWHULDRI/HDGHUVKLS³7KH)RXQGLQJ)DWKHUV $EË+ÀVKLP V(QWRXUDJH 7KH5HPDLQLQJ)RXQGLQJ)DWKHUV 7KH&KLHIVRIWKH2UJDQL]DWLRQ 7KH(QWLUH%RDUGRIWKH3ULQFLSDO7ZHQW\ (&ULWHULDRI)XUWKHU0HPEHUVKLS )XUWKHU(DUO\0HPEHUVKLS 1HLJKERXUV 'LVVLGHQWV )&ULWHULDRI5HYROXWLRQDU\$FWLRQ
3UH.KXUÀ8ÀQL\\DKDGYHQW )LUVWKDQG(\H:LWQHVV3DUWLFLSDQW5HSRUWHUV .KXUÀ8ÀQ2UJDQL]DWLRQDO&RQQHFWLRQ
3RVW.KXUÀ8ÀQL\\DK$GYHQW (DUO\2YHUW$SSHDUDQFH $EË6DODPDK V)LUVW1RPLQHHVDQG$SSRLQWHHV
3DJLQDWLRQ
6HULHV,,-:7À8À3&KDSWHU 7DEOH1R
,,$ ,,$ ,,$ ,,$ ,,$ ,,$ ,,$
,,$ ,,$ ,,$ ,,% ,,% ,,% ,,% ,,% ,,% ,,% ,,%
6SHFLILF&ULWHULRQD
$&ULWHULDRI,GHQWLW\
(WKQLF $UDE(WKQLFLW\$WWHVWHG $UDE(WKQLFLW\)DYRUHG $UDE(WKQLFLW\WRWDODVDFFHSWHGLQWKLVVWXG\ 1RQ$UDE(WKQLFLW\$WWHVWHG 1RQ$UDE(WKQLFLW\)DYRUHG 1RQ$UDE(WKQLFLW\VXEWRWDOWKRVHWKXVGHWHUPLQHG 8QGHWHUPLQHG(WKQLFLW\VSHFLILFLQGLFDWRUVWKDWPD\IDFLOLWDWH DQHGXFDWHGJXHVVDEVHQW'HHPHGQRQ$UDE 1RQ$UDE(WKQLFLW\JUDQGWRWDODVDFFHSWHGLQWKLVVWXG\
(WKQLF6RFLR5HOLJLRXV 0DZÀ1ÈQRQ$UDEVDIILOLDWHGWR$UDEWULEHV &RQYHUWVDOOQRQ$UDEVDQGQRQPDZÀ1È %&ULWHULDRI9LVLELOLW\DQG5HFRJQLWLRQ
1DPH5HFRJQLWLRQ +LJK1DPH5HFRJQLWLRQ*UDGHV 0HGLXP1DPH5HFRJQLWLRQ*UDGHV /RZ1DPH5HFRJQLWLRQ*UDGHV²
(2+5([WUD2UJDQL]DWLRQDO+LVWRULRJUDSKLFDO5HFRJQLWLRQ (2+5*UDGH (2+5*UDGH (2+5*UDGH (2+5$OO3RVLWLYH*UDGHV² (2+51HJDWLYH*UDGH
3DJLQDWLRQ
$33(1',;7:2
7DEOH1R
,,% ,,% ,,% ,,% ,,% ,,& ,,& ,,& ,,& ,,& ,,& ,,& ,,' ,,' ,,' ,,' ,,' ,,' ,,' ,,( ,,( ,,( ,,( ,,( ,,( ,,( ,,( ,,( ,,( ,,( ,,(
6SHFLILF&ULWHULRQD
,2+5,QWUD2UJDQL]DWLRQDO+LVWRULRJUDSKLFDO5HFRJQLWLRQ ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHRQO\ &&ULWHULDRI(TXLWDELOLW\%HWZHHQ&RQWULEXWLRQVDQG)RUWXQHV .LQVPHQ,QYROYHPHQW )RXQGHUVRI$EQÀr'\QDVWLHV *RYHUQPHQW$SSRLQWPHQWVDQG&RPPLVVLRQV $EË0XVOLP/R\DOLVWV $EË0XVOLP V+LJK3URILOH9LFWLPV $O0DQ¿ËU V+LJK3URILOH9LFWLPV 'HVWLQLHV*HQHUDOO\.QRZQ '&ULWHULDRI5DQNVLQ WKH/HDGHUVKLS6WUXFWXUH 7KH1XTDEÀr 7KH9LFH1DTÈEVVW/LVW 7KH9LFH1DTÈEVQG/LVW 7KH'XuÀWVW/LVW 7KH'XuÀWQGOLVW 'XuÀWDO'XuÀW 7KH7RWDO6WUXFWXUH (&ULWHULD3KDVHVRI5HYROXWLRQDU\$FWLRQ 3UH6WUXFWXUDOL]DWLRQ&RYHUW5ROHV 3RVW6WUXFWXUDOL]DWLRQ&RYHUW5ROHV
$EË0XVOLP V5HFUXLWV" 3RVW$EË0XVOLP V$GYHQW$SSHDUDQFH
7KH5HYROXWLRQLQ.KXUÀ8ÀQ )LUVW(UXSWLRQRIWKH$GYHQW$SSHDUDQFH 6SHFLDO5ROHVGXULQJ)LUVW(UXSWLRQ 7KH3XUJHRIWKH3URYLQFH &RQVROLGDWLRQLQWKH3URYLQFH 7RWDO3DUWLFLSDWLRQLQWKH5HYROXWLRQLQ.KXUÀ8ÀQ
7KH0DUFK:HVW 4DDEDK V&DPSDLJQ ,Q.ËIDK 3RVW.ËIDK&DPSDLJQV 7RWDO3DUWLFLSDWLRQLQWKH0DUFK:HVW
3DJLQDWLRQ
6HULHV,,,7KH:KROH2UJDQL]DWLRQ 7DEOH1R
,,,$ ,,,$ ,,,$ ,,,$ ,,,$ ,,,$
6SHFLILF&ULWHULRQD
$&ULWHULDRI,GHQWLW\
(WKQLF $UDE(WKQLFLW\$WWHVWHG $UDE(WKQLFLW\)DYRUHG $UDE(WKQLFLW\WRWDODVDFFHSWHGLQWKLVVWXG\ 1RQ$UDE(WKQLFLW\$WWHVWHG 1RQ$UDE(WKQLFLW\)DYRUHG 1RQ$UDE(WKQLFLW\VXEWRWDOWKRVHWKXVGHWHUPLQHG
3DJLQDWLRQ
7DEOH1R ,,,$
,,,$ ,,,$ ,,,$ ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,% ,,,& ,,,& ,,,& ,,,& ,,,& ,,,& ,,,&
63(&,$/$33(1',;
6SHFLILF&ULWHULRQD
8QGHWHUPLQHG(WKQLFLW\VSHFLILFLQGLFDWRUVWKDWPD\IDFLOLWDWH DQHGXFDWHGJXHVVDEVHQW'HHPHGQRQ$UDE 1RQ$UDE(WKQLFLW\JUDQGWRWDODVDFFHSWHGLQWKLVVWXG\
(WKQLF6RFLR5HOLJLRXV 0DZÀ1ÈQRQ$UDEVDIILOLDWHGWR$UDEWULEHV &RQYHUWVDOOQRQ$UDEVDQGQRQPDZÀ1È %&ULWHULDRI9LVLELOLW\DQG5HFRJQLWLRQ
1DPH5HFRJQLWLRQ +LJK1DPH5HFRJQLWLRQ*UDGHV 0HGLXP1DPH5HFRJQLWLRQ*UDGHV /RZ1DPH5HFRJQLWLRQ*UDGHV²
(2+5([WUD2UJDQL]DWLRQDO+LVWRULRJUDSKLFDO5HFRJQLWLRQ (2+5*UDGH (2+5*UDGH (2+5*UDGH (2+5$OO3RVLWLYH*UDGHV² (2+51HJDWLYH*UDGH
,2+5,QWUD2UJDQL]DWLRQDO+LVWRULRJUDSKLFDO5HFRJQLWLRQ ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHV ,2+5LQVRXUFHRQO\ &&ULWHULDRI(TXLWDELOLW\%HWZHHQ&RQWULEXWLRQVDQG)RUWXQHV .LQVPHQ,QYROYHPHQW )RXQGHUVRI$EQÀr'\QDVWLHV *RYHUQPHQW$SSRLQWPHQWVDQG&RPPLVVLRQV $EË0XVOLP/R\DOLVWV $EË0XVOLP V+LJK3URILOH9LFWLPV $O0DQ¿ËU V+LJK3URILOH9LFWLPV 'HVWLQLHV*HQHUDOO\.QRZQ
3DJLQDWLRQ
*/266$5&- WU $- :HQVLQFN LQ $- :HQVLQFN 7KH 0XVOLP &UHHG ,WV *HQHVLV DQG +LVWRULFDO'HYHORSPHQW&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV $EËu8ED\G $EË u8ED\G DO4ÀVLP LEQ 6DOOÀP .LWÀE DO$PZÀO HG 0. +DUUÀV %HLUXW 'ÀU DO .XWXEDOu,OPL\\DKQGHGQGVWHG $NKEÀU $QRQ\PRXV $NKEÀU DO'DZODK DOu$EEÀVL\\DK ZDIÈKL $NKEÀU DOu$EEÀV ZD ZDODGLKL HG u$u$DO'ËUÈDQGu$-DO:&1.'%HLUXW'ÀUDODOÈu&- $VKuDUÈ $EË DO¼DVDQ u$OÈ LEQ ,VPÀuÈO DO$VKuDUÈ 0DTÀOÀW DO,VOÀPL\\ÈQ ZD ,NKWLOÀI DO0X¿DOOÈQ HG+HOOPXW5LWWHU,VWDQEXO0DEDuDWDO'DZODK $]GÈ * ³³ 7KH +LVWRU\ RI %XNKDUD WU IURP D 3HUVLDQ DEULGJPHQW RI WKH $UDELF RULJLQDO 5LFKDUG1)U\H&DPEULGJH0DVV7KH0HGLHYDO$FDGHP\RI$PHULFD 1ÀVKLr $O1ÀVKLr DO$NEDU 0DVÀrLO DO,PÀPDK RI 8¿ËO DO1LDO HG - YDQ (VV %HLUXW DQG :LHVEDGHQ)UDQ]6WHLQHU9HUODJ 1D¿ULEQ6D\\ÀU 1D¿U LEQ 6D\\ÀU DO.LQÀQÈ 'ÈZÀQ 1D¿U LEQ 6D\\ÀU DO.LQÀQÈ FRPS u$ DO.KDÈE %DJKGÀG 1DZEDNKWÈ $O¼DVDQ LEQ 0ËVÀ DO1DZEDNKWÈ )LUDT DO6KÈu&- HG 0¸ %DU DOu8OËP 1DMDI 4XGÀPDK 4XGÀPDK LEQ -DuIDU 1XEDGK PLQ .LWÀE DO.KDUÀM ZD ¸DQuDW DO.LWÀEDK HG 0- 'H *RHMH/HLGHQ(-%ULOO 4XPPÈ 6DuG LEQ u$EG $OOÀK DO4XPPÈ .LWÀE DO0DTÀOÀW ZD DO)LUDT HG 0- 0DVKNËU 7HKUDQ0DEDuDW¼D\GDUÈ 5À]È u$EGDO5DPÀQLEQ$EȼÀWLPDO5À]ÈDO-DUZDDO7DuGÈOD\GDUDEDG À1.2 À1.2.'3-&02À3 u ') &1&2À3 .'3 $&?È) .'3 &1 :-&11&' u$EGDO5DPÀQLEQ=D\G u$EG DO6DOÀP LEQ u$EG DO5DPÀQ u ')&1"À.).'3 'Èu 2À3 'Ë u ') &1&2À3 &1 À0-:1À3 .'3 u ') 11À- 'Ë -À3.2 8** u ') &1¼&2È) .'3 .'uÈ $EËDO¼DMMÀM '˼&2?&-8**u 27.'3 u>&3 '˼&2?&-&1:7&'È $E˼DQÈIDK 'ËDO¼DVDQVHH.DWKÈULEQ6DuG $EË +ÀVKLP u$EG $OOÀK LEQ 0XDPPDG LEQ DO¼DQDIL\\DK =;..=;...===.; $EË+ÀVKLPVHH%XND\ULEQ0ÀKÀQ $EË+ÀVKLPLEQDO-XEEÀrÈ $EË+ÀVKLPL\\DK $EËDO+XGKD\OVHH¼D\\ÀQDO6DUUÀM $EË ¼XPD\G 0XDPPDG LEQ ,EUÀKÈ P DO¼LP\DUÈ $EË +XUD\UDK 0XDPPDG LEQ )DUUËNK=.= 'Ë &1¼:8&>3 8** &1¼&8&3 .'3 &&'&- 'Ë ¼:9À2&- 8** &1 8-u&9- .'3 $&>À $EË ,EUÀKÈP VHH 0XDPPDGLEQDO 0XNKWÀU $EËu,NULPDK=L\ÀGLEQ'LUKDP 'Ë u¿À2 8** u ') &1&2À3 .'3 :1&>2À3 'Ë8À6&1&7>&- &1 À-.1È 'Ë&1&3&)&1 uÀ.'3:u&>2 $EË0LNKQDI 'Ë:6À9.1&1-:7À8À3È 'Ë 0ËVÀ 8** u·VÀ LEQ ,EUÀKÈP DO 6DUUÀM $EË 0XVOLP DO.KXUÀVÀQÈ ==;... ===. ===; ===;.. $EË 0XVOLPL\\DK 'Ë&1:9&' 'Ë:¿&>7&1:7/&3È 'Ë:77&-8**.1À1.'3u ') $EË5DEÀ8**0D\VDUDKDO1DEEÀO 'Ë &1&'Èu 8** '7À-È2 .'3 &1 ¼&8&3&1 :0-À7È $EË5Xr'&-&1:7/.r 'Ë&u)&1-&7&&-.'3./À) &1À89À0-&3/ 'DPDVFXV &3.*1 ==.. ==; ==;.. ==;... === ===.===.. &89&'À 'ÀZËGLEQu$OÈ À) DO)DÉOLEQ6ÀOLPDO$uPÀ &1&É1.'3:1&>2À3 &-2 )DQÈQ &7,-À3&- )DUV À7>À' )ÀLPDK=;.. )DLPLG )ÀLPL\\DK 7>* *KÀOLE
-À1.'.'3&uÈ) *KÀPLG -&>1À3 .'3 u ') 11À- .'3 82Àr -Ë7&0 *LEE ==;... *ROG]LKHU ¼&'È'.'3¹:7&>8 ¼&'È'.'3:89&2 ¼DI¿DO$VÈU ¼&+¿.'3È3À7 ¼DI¿LEQ6XOD\PÀQ8** 'Ë&1&2&- &1-&11À1 ¼À/.'.'3.7-&2 ¼À/.'.'3¸&))À3 DO¼DMMÀM DO¼DMMÀMLEQ$UDr&-.'3-&8 DO¼DUDVKÈ &7À9 ¼&7'.'3&79-&) ¼&7'.'3u 9-2À3 ¼&7'.'3%.>À)&1À1&6À3È DO¼DUÈVKLEQ$EÈDO¼DUÈVK &1¼&7È8- .'3 :&22&) &1 -:-1È &1¼&7È8-.'3:1&>2À3 DO¼ÀULWK &3Ë DO¼ÀULWK LEQ 6XUD\M ¼À7.9-&- ¼DUUÀQ=;.. DO¼DVDQ =;... &1¼&8&3.'3¼&2)À3
,1'(;
DO¼DVDQLEQ¼DP]DK &1¼&8&3.'3&1:3&>) DO¼DVDQLEQ4DDEDK &1¼&8&3.'3u 1À.1&- DO+D\WKDP &1&>9-&2.'3 &88À2 &1&>9-&2.'3:uÀ&-8** 'Ë &1-&À' &1&>9-&2.'3-:u'&- &1&>9-&2.'3:1&>2À3 &1&>9-&2 .'3 $&?È) .'3 &>8À3 &1&>9-&2 .'3 %.>À) &1-:?ÀuÈ ¼&>)&1 ?7&6 ¼:2&>) .'3 &1-&À' &1&-7È ¼XPD\G LEQ 4DDEDK ¼:2&>)&1"&79&0À3È ¼XPD\PDK +XUD\UL\\DK ¼:7&>9- ¼:7&>9-.'3u .>>&- ¼XUD\WK LEQ 4XEDK :72:?+&77&- DO¼XVD\Q =;... ,EQDOu$EEÀV '3u ++À3 ,EQu¯2.7 '3&1 8-u&9- ,EQ$u\DQ ,EQ¹:EÀUDK '3¼&0È2 ,EQ¼DQÍDODK ,EQ DO¼ÀULWKL\\DK =.= ,EQ+XED\UDK ,EQu,UV ,EQ.KÀOLG ,EQ.KÀ]LP ,EQDO.LUPÀQÈ ,EQ&>2Ë3 ,EQ0XuÀZL\DK ,EQDO0XKDOODE ,EQDO0XÍDIIDU '3&1&/À ,EQu8PD\U ,EQ=ÀGKÀQ '3%:7&>6.'3-& u·VÀLEQ=XUuDK ¿+&-À3=.===... 8À6.'3'7À-È2 8À6.'3&1&- ,VÀTDO7XUN 8-'&)À)LEQ&7È/Ë7 ,VPÀuÈO 82ÀuÈ1 0-Ë-À?.2 82ÀuÈ1.'3u¯2.7.'3À+.u 82ÀuÈ1.'3&1:9&À .1À3.'3&1¸:,-)È -XGD\uLEQu$OÈ DO-XQD\G DO-XQD\GLEQ.KÀOLG -XUDVK -XUMÀQ==.; Ë?/À3 .DuE .DuED .ÀPLOLEQDO0XÍDIIDU .DWKÈU LEQ 6DuG .D\VÀQL\\DK ===.; -&'7À32&9- &3Ë .6+À /XMD\P%DQË &u'&).'3&1-&1È1 &)*1:3, 0DGKLM 0DGÈQDK DO0DGÈQDKDO+ÀVKLPL\\DK 0DJLDQ 0ÀKÀQLEQ%DNKW 0ÀKÀQ%DQË À-+&7>&- À?.3 0D]\DGLEQ6KDTÈT .6À3.'3-&?3 &1u ')È :&22&) .'3 '7À-È2 .'3 :36.)-8** '˼:2&>)
,1'(;
0XDPPDG LEQ .KÀOLG 0XDPPDG LEQ .KXQD\V 0XDPPDGLEQDO0XNKWÀU 0XDPPDGDO1DIVDO=DNL\\DK :&22&).'3&u) 0XDPPDGLEQ6ÀOLPDO$uPÀ :&22&) .'3 -.-À' &1À?.3È :&22&) .'3 ¸Ë1 0XDPPDG LEQ 6XOD\PÀQ LEQ .DWKÈ U :&22&).'3-À'.9 :&22&).'3u 13&1&u)È &-À7.'3&8===.===.. &>8.'3&1&7.>> .33&87È3
4LUPÀVÈQ :É Àu&- 4ËKLVWÀQ 4ËPLV :22 :3):-À7 4XUD\VK 4XUD\VK LEQ 6KDTÈT DO6XODPÈ :7&>Í.'3&//À/.'3&1:89&'&- :9&>'&-À9.'u¯2.7 :9&>'&KLEQ0XVOLP :'&- DO5DEÈu &'Èu&- 5DTTDK 5ÀZDQGL\\DK 5DZLEQ¼ÀWLP 5D\\ 5LEÀE 5LÉÀ =; =;.. ==; ===.; ===;.. ULÉÀ =; =;.. == ==; ==;. ===.; ===; ===;.. 5L]ÀPLEQ6ÀELT 5L]ÀPL\\DK 5XVWDP &''Àu 6DEÈu
,1'(;
6ÀELT DO.KZÀUL]PÈ &u) &u)&1&1Àr.u DO6DIIÀ ==. ¸&,-À3.>À3 &uÈ).'3u 27 6DuÈGDO¼DUDVKÈ &uÈ).'3u 9-2À3 6DODPDKLEQ%XMD\U &1&2&- .'3 :&22&) &1À ¸À1..'3 8->&2&1u )&1Àr À)-À1&1"&1È) %.>À).'3.8-0À3 =L\ÀGLEQ1DGKÈU =L\ÀG LEQ ¸ÀOL %.>À) .'3 ¸À1. &1-:?ÀuÈ %.>À).'3&12À3 %.>À).'3&>>À7 %.>À).'3%:7À7&- %.>À)&-.'3&-7À3 =RURDVWULDQ DO=XED\ULEQDOu$ZZÀP =XED\ULG =XED\UL\\DK =XKD\U LEQ 0XDPPDG LEQ ¼D\\ÀQ =XUÀUDK %:7&>6.'3-& rd.,ed '0 I....mic hi"o'1' J9 F. ok Jonll.nd 1l.lUdtkld.." .\/y<Jsytim .nd N,,,,J,,,,"'P"""iiw. SC he Er"""",Uung unch.~li~ bi. ,u rlchuk,o. UIO>, ..." 90 ~ 'H74 1 ~, 1~.Mouki. n.. Onti'" 0>{ I,J-iI =hu,... of Il.R>dIk•. '9\I\l. ".,,""'~ ,086j I J' U.lUd000.
".,,""'''' ""11
JJ F.ll.FIood. no.. C ...d' .11""1"' '!fD,,0YSl'U. Scudi.. on 'he M.ung> of.n Unurr>d Vi>u.ol Cui,,,,,,. JOO'. "0" 90 o~ "6)8 9 H I, WOK"''''''- l.,,,o>{.U.. Ouon.." D.",.>c"'. >00,. "." "'" '" "9OlI6 H A.J-F...nk. .Itd,h'.. Rrl~, 'ou';","""';. I",,,..,w R...,io, Th. IIlI,nk World of N"''01lzemk Di
"." .... "''''].) HJJ. Donohu., lltt 1J.."ybiJ 1)yno>J'y;. I'q JJ.H.f~.J '" ....JH,lOu, Sluping I""ilu""'" Ior'hc FUlUf'
S.'Jcddi. (". 'IU). "001. "." \lO o~ ,,,,,8 ] ]8 E.Dickinson. Thd)n.."",....,o>{F~r S,,".'''' l-l>dI,h Co'tiriI.. , Tho T."Ji.... of Ibn Abl i;u"m ,1_Rlzl (1~of8j~-]J7/9]li). UIO'. "0" .... o~ ,,80j •
.1.J~1,11l1~