Redemption in the Life and Work of Camille Claudel

Redemption in the Life and Work of Camille Claudel

Brigham Young University
BYU ScholarsArchive
All Theses and Dissertations
2012-03-08
Redemption in the Life and Work of Camille
Claudel
Haleigh Heaps Burgon
Brigham Young University - Provo
Follow this and additional works at: http://scholarsarchive.byu.edu/etd
Part of the French and Francophone Language and Literature Commons, and the Italian
Language and Literature Commons
BYU ScholarsArchive Citation
Burgon, Haleigh Heaps, "Redemption in the Life and Work of Camille Claudel" (2012). All Theses and Dissertations. Paper 2987.
This Thesis is brought to you for free and open access by BYU ScholarsArchive. It has been accepted for inclusion in All Theses and Dissertations by an
authorized administrator of BYU ScholarsArchive. For more information, please contact [email protected].
5HGHPSWLRQLQWKH/LIHDQG:RUNRI&DPLOOH&ODXGHO
+DOHLJK+HDSV%XUJRQ
$WKHVLVVXEPLWWHGWRWKHIDFXOW\RI
%ULJKDP<RXQJ8QLYHUVLW\
LQSDUWLDOIXOILOOPHQWRIWKHUHTXLUHPHQWVIRUWKHGHJUHHRI
0DVWHUVRI$UWV
-HVVH'+XUOEXW&KDLU
+HDWKHU%HOQDS-HQVHQ
$QFD6SUHQJHU
'HSDUWPHQWRI)UHQFK
%ULJKDP<RXQJ8QLYHUVLW\
$SULO
&RS\ULJKW‹+DOHLJK+HDSV%XUJRQ
$OO5LJKWV5HVHUYHG
$%675$&7
5HGHPSWLRQLQWKH/LIHDQG:RUNRI&DPLOOH&ODXGHO
+DOHLJK+HDSV%XUJRQ
'HSDUWPHQWRI)UHQFK
0DVWHURI$UWV
&DPLOOH&ODXGHOLVDVFXOSWRUZKRKDVWUDGLWLRQDOO\EHHQDSSURDFKHGLQWHUPVRIKHU
UHODWLRQVKLSWR5RGLQDQGKLVLQIOXHQFHRQKHUZRUN,QGHHGWKHWZRVKDUHGDSDVVLRQDWH
UHODWLRQVKLSDQGWKHUHDUHFHUWDLQO\VLPLODULWLHVEHWZHHQWKHWZRVFXOSWRUV¶ZRUNZKLFKSURYLGH
IRUIDVFLQDWLQJDQDO\VHV+RZHYHURQHRIWKHDFNQRZOHGJHGEXWSUHYLRXVO\XQH[SORUHG
VSHFXODWLRQVRQ&ODXGHO¶VDUWVXJJHVWVWKDWLWLQYROYHVDPHDVXUHRIYHLOHGVSLULWXDOLW\VHDOHG
ZLWKLQLWVVWRQH,WLVSUHFLVHO\WKLVVDFUHGHOHPHQWZLWKLQKHUVFXOSWXUHVWKDWRIIHUVYLHZHUVDQ
RSSRUWXQLW\WRH[SHULHQFHWUDQVFHQGHQFHZKLOHLGHQWLI\LQJZLWKIXQGDPHQWDOWKHPHV
)XUWKHUPRUH&ODXGHOFUHDWHGKHUILJXUHVDVDPHWKRGRILQWHULRUKHDOLQJDQGGHOLYHUDQFH7KLV
WKHPHRIUHGHPSWLRQZLOOEHHVVHQWLDOWRDUULYLQJDWWKHPRUHSURIRXQGPXOWLIDFHWHG
LQWHUSUHWDWLRQVRIKHUVFXOSWXUHV
7RKLJKOLJKWWKHFRQQHFWLRQVWRWKHYDULRXVDUWLVWVDQGPRYHPHQWVGLVFXVVHGLQWKHWKHVLV
&ODXGHO¶VSLRXVO\WKHPDWLFDUWFDQEHFRPSDUHGWRWKHQRQWUDGLWLRQDOLOOXVWUDWLRQVE\9LQFHQW9DQ
*RJK3DXO*DXJXLQDQGWKHUHOLJLRXVGHSLFWLRQVRI-DPHV7LVVRWDVZHOODVEHLQJVHHQDV
HQJDJLQJZLWKWKHLGHDRIWKHRVRSK\DQGWKH6\PEROLVWDUWPRYHPHQW,WLVWUXHWKDWLQILQGH
VLqFOH)UDQFHGXHWRWKHDGYDQFLQJVHFXODUL]DWLRQRIVRFLHW\YLHZHUVGLGQRWXQGHUVWDQG
UHOLJLRXVDQGVSLULWXDOV\PEROLVPLQDUWDVFRPSUHKHQVLYHO\DVWKH\KDGLQWKHSDVW+RZHYHULW
ZLOOEHQHFHVVDU\WRVKRZWKDW&ODXGHOZDVQRWWKHRQO\DUWLVWLQWHUHVWHGRIKHUHUDZKRSHUVLVWHG
LQFRQYH\LQJVSLULWXDOWKHPHVZLWKLQVXSSRVHGO\VHFXODUVFHQHV
<HW&ODXGHO¶VZRUNUHPDLQVXQLTXHLQWKDWLWFRPPXQLFDWHVWKHWKHPHRIUHGHPSWLRQ
WKURXJKLWVFUHDWLRQDVZHOODVWKURXJKLWVFUHDWRU&KH]&ODXGHOWKHDUWDQGWKHDUWLVWDUHXQLWHG
DQGRQHFDQQRWEHIXOO\XQGHUVWRRGZLWKRXWWKHRWKHU0RUHRYHUWKURXJKKHUPDVWHUSLHFHVVKH
GLGQRWRQO\RIIHULQVLJKWLQWRWKHPHDQLQJRIH[LVWHQFHWKURXJKKHUUHGHPSWLYHZRUNVVKHIRXQG
PRPHQWDU\VDOYDWLRQIRUKHUVHOIDQGIRURWKHUVIURPWKHH[FUXFLDWLQJRXWZDUGRSSUHVVLRQSUHVHQW
DWWKHFORVHRIWKHWKFHQWXU\
8QIRUWXQDWHO\VLQFHWKHPRPHQWVKHEHJDQWRVXFFHVVIXOO\DFKLHYHUHFRJQLWLRQIRUKHU
ZRUNFULWLFVKDYHEHHQFRQWHQWWRYLHZHDFKRI&DPLOOH&ODXGHO¶VVFXOSWXUHVDVDGHOLEHUDWH
UHVSRQVHWRKHUWXPXOWXRXVUHODWLRQVKLSZLWK5RGLQ7KLVWKHVLVZLOOLQYHVWLJDWHPRUH
HQOLJKWHQHGLQWHUSUHWDWLRQVPDGHSRVVLEOHZKHQRQHVLPXOWDQHRXVO\FRQVLGHUVWKHUROHRIKHU
VSLULWXDOLW\,WZLOOEHFRPHXQPLVWDNDEO\FOHDUWKDW&DPLOOH¶VEURWKHU3DXOZDVULJKWZKHQKH
VWDWHGWKDWKHUZRUNLVYDVWO\GLIIHUHQWIURPDOORWKHUDUWLVWV¶³EHFDXVHLWZHOFRPHVOLJKWDQG
UDGLDWHVWKHLQQHUGUHDPWKDWLQVSLUHGLW´$\UDO&ODXVH
.H\ZRUGV5HGHPSWLRQ6FXOSWXUH6SLULWXDOLW\6\PEROLVP&DPLOOH&ODXGHO
LLL
&217(176
$%675$&7LL
&217(176LLL
/,672)),*85(6LY
,1752'8&7,21
&+$37(5(&67$6<
(FVWDV\DQG/D9DOVH
&+$37(5$*21<
&ORWKR$JRQ\3HUVRQLILHG
7KH5XSWXUH/¶kJHP€U
&+$37(56<0%2/,60
&ODXGHODV3DUWRIWKH6\PEROLVW0RYHPHQW
7KH5ROHRI6SLULWXDOLW\DQG5HOLJLRQLQ$UWLQ)LQGH6LqFOH)UDQFH
6SLULWXDO6\PEROLVP
&+$37(563,5,78$/,7<$1'5('(037,21
6SLULWXDOLW\DQG5HGHPSWLRQLQWKH:RUNVRI&ODXGHO¶VSDUWQHU5RGLQDQGKHU
&RQWHPSRUDULHV
5HGHPSWLRQLQDQG7KURXJK/DSHWLWHFKkWHODLQH
6HHNLQJ5HGHPSWLRQIURP0DOH2SSUHVVLRQ+HU5ROHDQG&RQWULEXWLRQDVD:RPDQ
&21&/86,21
),*85(6
%,%/,2*5$3+<
LY
/,672)),*85(6
&DPLOOH&ODXGHO/D9DOVH%URQ]H3RLWLHUV0XVpH6DLQWH&URL[
&DPLOOH&ODXGHO&ORWKR3ODVWHU3DULV0XVpH5RGLQ
(XJqQH'UXHW)DWHDQGWKH&RQYDOHVFHQW0DUEOH/RQGRQ
$XJXVWH5RGLQ6KHZKRZDVWKH+HOPHW0DNHU¶V2QFH%HDXWLIXO:LIH%URQ]H
3DULV0XVpH5RGLQ
-XOHV'HVERLV0LVHU\7HUUDFRWWD3DULV0XVpH5RGLQ
0LFKHODQJHOR'\LQJ6ODYH0DUEOH3DULV0XVpHGX/RXYUH
'RQDWHOOR0DJGDOHQH3HQLWHQW:RRG)ORUHQFH0XVHRGHOO¶2SHUDGHO
'XRPR
&DPLOOH&ODXGHO(DUO\SODVWHUOHIWDQGILQDOEURQ]HULJKWRI/¶kJHP€U
3DULV0XVpH5RGLQDQG0XVpHG¶2UVD\UHVSHFWLYHO\
&DPLOOH&ODXGHO7KH:DYH2Q\[3DULV0XVpH5RGLQ
&DPLOOH&ODXGHO6DNRXQWDOD0DUEOH3DULV0XVpH5RGLQ
$XJXVWH5RGLQ(WHUQDO,GRO0DUEOH3DULV0XVpH5RGLQ
&DPLOOH&ODXGHO/H3VDXPH%URQ]H$EEHYLOOH0XVpH%RXFKHUGH3HUWKHV *XVWDYH'RUp7KH'RUp%LEOH/RQGRQ
-DPHV7LVVRW&UXFLIL[LRQVHHQIURPWKH&URVV:DWHUFRORURQFDQYDV1HZ
<RUN%URRNO\Q0XVHXP
&DPLOOH&ODXGHO%XVWRI5RGLQ&OD\3DULV0XVpH5RGLQ
&DPLOOH&ODXGHO/HGLHXHQYROp7KH9DQLVKHG*RG%URQ]H3ULYDWH&ROOHFWLRQ
&DPLOOH&ODXGHO/¶LPSORUDQWH7KH,PSORUHU%URQ]H3DULV0XVpH5RGLQ
$XJXVWH5RGLQ7KH3URGLJDO6RQ%URQ]H3DULV0XVpH5RGLQ
Y
$XJXVWH5RGLQ$GDP%URQ]H/LOOH0XVpHGHVEHDX[DUWV
0LFKHODQJHOR7KH&UHDWLRQRI0DQ)UHVFR9DWLFDQ&LW\6LVWLQH&KDSHO
9LQFHQW9DQ*RJK7KH6WDUU\1LJKW2LORQFDQYDV1HZ<RUN0XVHXPRI
0RGHUQ$UW
3DXO*DXJXLQ9LVLRQ$IWHUWKH6HUPRQ2LORQFDQYDV(GLQEXUJK1DWLRQDO
*DOOHU\RI6FRWODQG
$OEHUW%DUWKRORPp$GDPDQG(YH0DUEOH6DLQW3HWHUVEXUJ+HUPLWDJH0XVHXP
$XJXVWH5RGLQ7KH.LVV0DUEOH3DULV0XVpH5RGLQ
&DPLOOH&ODXGHO&KDUOHV/KHUPLWWHDVD&KLOG%URQ]H0RQWDXEDQ0XVpH
,QJUHV
$XJXVWH5RGLQ8JROLQRDQGKLV&KLOGUHQ3ODVWHU3DULV0XVpH5RGLQ
-XOHV%DVWLHQ/HSDJH-RDQRI$UF2LORQFDQYDV1HZ<RUN0HWURSROLWDQ
0XVHXPRI$UW
-RKQ(YHUHWW0LOODLV-RDQRI$UF2LORQFDQYDV3ULYDWH&ROOHFWLRQ
&DPLOOH&ODXGHO/D3HWLWH&KkWHODLQH7KH/LWWOH0DQRU/DG\3ODVWHU)UDQFH
3ULYDWH&ROOHFWLRQ
&DPLOOH&ODXGHO-HDQQHHQIDQW-RDQDVD&KLOG0DUEOH0XVpH5RGLQ3DULV
&DPLOOH&ODXGHO/D3HWLWH&KkWHODLQH7KH/LWWOH0DQRU/DG\%URQ]H)UDQFH
3ULYDWH&ROOHFWLRQ
&DPLOOH&ODXGHO/D3HWLWH&KkWHODLQH7KH/LWWOH0DQRU/DG\0DUEOH5RXEDL[
)UDQFH0XVpHG¶$UWHWG¶,QGXVWULH$QGUp'LOLJHQW
,1752'8&7,21
³<RXILQGPHDWZRUNH[FXVHWKHGXVWRQP\EORXVH,VFXOSWP\PDUEOHP\VHOI´VDLG
WKH\RXQJ)UHQFKVFXOSWRU&DPLOOH&ODXGHOWR$XJXVWH5RGLQZKRKDGKDSSHQHGXSRQKHU
DWHOLHUDQGKHUWDOHQWIRUWKHILUVWWLPH,WZDVRQO\DPDWWHURIPRPHQWVEHIRUHKHUHDOL]HGKHKDG
QRFKRLFHEXWWRPDNHWKLVFUHDWLYHJHQLXVKLVDSSUHQWLFH<HWKHFRXOGQRWKDYHIRUHWROGWKH
LPSDFWVKHZRXOGKDYHRQERWKKLVDUWLVWLFDQGSHUVRQDOH[LVWHQFH
7KURXJKWKHFRXUVHRIWKHLU\HDUVWRJHWKHU5RGLQDQG&ODXGHOEHFDPHLQYROYHGLQD
WRUULGORYHDIIDLU6KHEHFDPHQRWRQO\KLVORYHUEXWPRUHLPSRUWDQWO\KLVPRGHOKLV
LQVSLUDWLRQDQGKLVFRQILGDQWH<HWVKHRIWHQIHOWWKDWVKHOLYHGLQ5RGLQ¶VVKDGRZDQGDVD
UHVXOWVKHFRQWLQXDOO\HQGHDYRUHGWRSURYHWKDWKHUVW\OHZDVGHHSDQGGLVWLQFWLYH7KRXJK
5RGLQQHYHUGHQLHGKLVORYHIRU&ODXGHOKHUHIXVHGWRVHSDUDWHIURPKLVORQJWLPHFRPSDQLRQ
5RVH%HXUHWDQGWKXVZRXOGQRWEHVWRZWKHFRPPLWPHQWVKHGHVLUHG,WZDVGXULQJWKLVWUDJLF
SHULRGWKDW&ODXGHOVXIIHUHGIURPDQXQZDQWHGDERUWLRQDQGKHUZRUOGEHJDQWRFROODSVH
+RZHYHUVKHGLGQRWVXUUHQGHUWRKHUGHPLVHZLWKRXWDEDWWOH%HWZHHQDQGDIWHUKHU
UXSWXUHZLWK5RGLQVKHFRPSOHWHGKHUPRVWLQIOXHQWLDOSLHFHV/LWWOHE\OLWWOHDVVKHHVFDSHGKHU
PHQWRU¶VJUDVSVKHZRYHHPEOHPVRIKHUIHHOLQJVFRQFHUQLQJH[LVWHQFHLQWRHDFKSLHFHVKH
FUHDWHG
7KURXJKERWKWKHVXFFHVVIXODQGDJRQL]LQJPRPHQWV&ODXGHOHQFRXQWHUHGVKHUHFHLYHG
OLWWOHFRQVLGHUDWLRQIURPKHUIDPLO\+HUPRWKHUZDVVSHFLILFDOO\DJLWDWHGE\KHUGDXJKWHU¶V
OLEHUDOVWURQJZLOODQGDUWLVWLFLQFOLQDWLRQV$QGDOWKRXJKKHUPRWKHUDQGEURWKHUZHUHDVKDPHG
WRVHHKHUUHYROWDJDLQVWWKHIDPLO\¶V³WUDGLWLRQDOO\´&DWKROLFZD\V&ODXGHOLQFRUSRUDWHGDYHLOHG
VSLULWXDOLW\VHDOHGZLWKLQKHUSLHFHVZKLFKLVSUHFLVHO\ZKDWUHQGHUVKHUZRUNVVRH[FHSWLRQDOO\
WRXFKLQJ0DUF&KDJDOOVWDWHG³$UWVHHPV«WREHDERYHDOODVWDWHRIVRXO´ZKLFKLVZK\
VWXG\LQJHOHPHQWVRIKHUOLIHDQGVXEVHTXHQWO\WKHWKHPHVRIHFVWDV\WKHIDOODQGUHGHPSWLRQLQ
KHUZRUNVZLOOVXUHO\OHDGWR³XQFRYHU>LQJ@WKHPRYLQJIRUFHRUVSLULWEHKLQGKHUVFXOSWXUH´
&DUDQID7UDJLFDOO\KHUVXFFHVVHVFRXOGQRWSUHYHQWWKHKHDUWUHQGLQJRXWFRPHRIKHUOLIH
,QDIWHU&ODXGHOVKRZHGVLJQVRIGHVSDLUDQGGHVSRQGHQF\KHUEURWKHU3DXODQGKHU
PRWKHU/RXLVHFRQVSLUHGWRJHWKHUWRKDYHKHUFRQILQHGWRWKHSV\FKLDWULFDV\OXPRI9LOOHeYUDUG
IRUWKHUHPDLQLQJWKLUW\\HDUVRIKHUOLIH'H%D\VHU
:K\WKLVH[WHQVLYHH[SODQDWLRQRIDOLIHORQJYDQLVKHG"&DQRQHQRWDGPLUHKHU
VFXOSWXUHVZLWKRXWWKLVKLVWRULFDOIDPLOLDULW\"&ODXGHOZRUNHGLQVHFOXVLRQRQWKHDVVXPSWLRQ²
VKDUHGDWOHDVWWKHRUHWLFDOO\E\KHUFRQWHPSRUDULHV²WKDWDUWLVWLFJHQLXVFDPHIURPZLWKLQDQ
LQGLYLGXDODQGZRXOGEHUHFRJQL]HGLQSURSRUWLRQWRLWVLQWULQVLFPHULW+LJRQQHW7KXVE\
ZHDYLQJWKUHDGVRIH[SHULHQFHIURPKHUWXPXOWXRXVSHUVRQDOOLIHLQWRKHUPDVWHUSLHFHV&ODXGHO
DLPHGWRHQKDQFHKHUGHVWLQ\DQGDUWLVWLFPHULW7KLVLVSUHFLVHO\ZK\ZHZLOOH[DPLQHKHU
ZRUNVKDQGLQKDQGZLWKKHULQWULJXLQJELRJUDSK\
,QDVFXULRVLW\VXUURXQGLQJWKHZRUNVRI&DPLOOH&ODXGHOLQFUHDVHGWKH0XVpH
5RGLQDORQJZLWK/H)LJDURSXEOLVKHGDVSHFLDOHGLWLRQPDJD]LQHHQWLWOHG&DPLOOH&ODXGHO/D
)HPPH/¶$UWLVWH/¶LQVRXPLVH ,QLWUHDGHUVDUHSULYLOHJHGWRQHYHUEHIRUHVHHQLPDJHV
OHWWHUVDQGUHFRUGVZKLFKFRPPHQWRQKHUZRUNV,QRQHVHFWLRQRIWKHHGLWLRQHQWLWOHG³/¶H[WDVH
HWO¶DJRQLH´WKHUHOLHVSURRIWKDWPDQ\KDYHQRWLFHGWKHIDOOLQJVDQGULVLQJVLQKHUZRUNDQG
XQGHUVWRRGWKDWWKHVHDUHZKDWJLYHKHUSLHFHVVXFKGLYHUVLW\2FWDYH0LUEHDXZDVDPRQJWKHVH
SHUFHSWLYHREVHUYHUV+HVWDWHG³&KH]OHVQDWXUHVDUGHQWHVGDQVFHVkPHVERXLOORQQDQWHVOH
GpVHVSRLUDGHVFKXWHVDXVVLSURIRQGHVTXHO¶HVSRLUOHXUGRQQHG¶pODQYHUVOHVKDXWHXUV´ +H
FRQWLQXHGWRH[SODLQWKDW³&¶HVWGHFHWWHGHVWLQpHWUDJLTXHTX¶HVWQpHXQHGHV°XYUHVOHVSOXV
&DPLOOH&ODXGHO7KH:RPDQ7KH$UWLVW7KH8QVXEGXHG
,QWKRVHZLWKSDVVLRQDWHQDWXUHVDQGHIIHUYHVFHQWVRXOVGHVSDLUKDVLWVSURIRXQGIDOOVMXVWDVKRSHKDVLWVEXUVWVRI
JUHDWKHLJKWV
SURIRQGHVHWOHVSOXVPDJLVWUDOHVGHVRQWHPSV´ 'H%D\VHU7KHPDJD]LQHFDUULHVWKHVH
WKHPHVWKURXJKRXWLWVYLJQHWWHOLNHFULWLTXHVRQKHUZRUNV
6XEVHTXHQWO\DFDQGLGKHDGLQJSUHFHGLQJWKHLPDJHVRIKHUZRUNVDGPLWVWKHVWUXJJOH
VKHIDFHGLQOLIH,WVWDWHV³'XUDQWVDORQJXHH[LVWHQFH&DPLOOH&ODXGHODXUDWRXWFRQQXOHV
MRLHVHWOHVSHLQHVGHO¶HQIDQFHOHVSODLVLUVGHO¶DPRXUODJORLUHHWOHVVXFFqVDYDQWOHV
VRXIIUDQFHVGHVFDSWLIV´ 'H%D\VHU)XUWKHUPRUHWKRXJK5RGLQ¶VUHMHFWLRQZDV
XQGRXEWHGO\WKHFRUHFDXVHRIWKHHPRWLRQVEHKLQGWKHWUDJLFIDOOHQILJXUHVLQ&ODXGHO¶V
VFXOSWXUHVLWFDQQRWEHGHQLHGDV+LJRQQHWVD\VWKDW³WKHLUGHFDGHWRJHWKHUZDVWKHPRVW
LQQRYDWLYHDQGWKHPRVWSURGXFWLYHRIERWKWKHLUFDUHHUV´+LJRQQHW7KXVLWLVQRWVXIILFLHQW
WRVLPSO\XQFRYHUWKHSDQJVRIGLVDVWHULQWKHVHZRUNV:HPXVWDGGLWLRQDOO\VHDUFKIRUWKH
VXUURXQGLQJPRPHQWVRIHFVWDV\DQGUHGHPSWLRQWZRWKHPHVZKLFKFRQYH\DKRSHIRU
GHOLYHUDQFHIURPKHUZRUOGO\VRUURZV
&DPLOOH&ODXGHOLVDUJXDEO\WKHPRVWJLIWHGVFXOSWRUWRFUHDWHLQWKHSDVWVHYHUDO
FHQWXULHVDQGWUDJLFDOO\YHU\IHZDWWHPSWVWRGLVHQWDQJOHKHUZRUNIURPWKDWRI$XJXVWH5RGLQ
DURVHXQWLODIWHUKHUGHDWK6KHLVQRWRQO\RIWHQRPLWWHGIURPWKHJURZLQJERG\RIIHPLQLVW
OLWHUDWXUHEXWLVDOVRVHOGRPLQWHJUDWHGLQWRWKHODUJHU)UHQFKDUWLVWLFFRQWH[W&DUDQID7KHUH
LVSOHQWLIXOHYLGHQFHWKDWKHUZRUNVVKRXOGEHEURXJKWLQWRWKHOLJKWDQGH[DPLQHGWRDGHHSHU
H[WHQW$QGWKRXJKWKHPDMRULW\RIDQDO\VHVLQVLVWRQGUDZLQJSDUDOOHOVEHWZHHQKHUZRUNDQG
5RGLQ¶V$QJHOR&DUDQIDH[SODLQHGZK\RQHPXVWDOVRDFNQRZOHGJHWKHGLVSDULW\EHWZHHQWKH
WZRDUWLVWVLQRUGHUWRZLWQHVVWKHPDJQLWXGHRIKHUVFXOSWXUHVDQGIXOO\DSSUHFLDWHWKH
WUDQVFHQGHQWDOGHSWKWKH\KDYHWRRIIHU+HVWDWHG
)URPWKLVWUDJLFGHVWLQ\ZDVERUQRQHRIWKHPRVWSURIRXQGDQGVXSHULRUZRUNVRILWVWLPH
7KURXJKRXWKHUORQJH[LVWHQFH&DPLOOH&ODXGHOZLOOKDYHH[SHULHQFHGHYHU\WKLQJWKHMR\VDQGSDLQVRIFKLOGKRRG
WKHSOHDVXUHVRIORYHJORU\DQGVXFFHVVDQGILQDOO\WKHVXIIHULQJVRIFDSWLYLW\
%HKLQGWKLVFRQWUDVWOLHVWKHGLIIHUHQFHEHWZHHQWZRUDGLFDOO\RSSRVHGYLHZVRIDUWLVWLF
FUHDWLRQDQGRIOLIHLWVHOI&ODXGHOSHUFHLYHGDUWLVWLFFUHDWLRQDVWKHVLOHQFHRISHUFHSWXDO
H[SHULHQFHDVLOHQFHWKDWLVDFWXDOSULPDU\DQGFRPPXQLFDWLYH5RGLQXQGHUVWRRGLWDV
WKHVLOHQFHRIPHQWDOFRQVFLRXVQHVVRUSHUFHSWLRQDVLOHQFHWKDWLVXQOLPLWHGSRWHQWLDOLW\
DVZHOODVDQLQDUWLFXODWHYRLGDQRWKLQJQHVV«7KXV&ODXGHO¶VDUWLVWLFFUHDWLRQGRHVQRW
OLHZLWK5RGLQQRUGRHVKHUOLIH6KHUHWDLQHGWKHVSLULWDQGVW\OHRIWKH,WDOLDQ
5HQDLVVDQFHPDVWHUV«UDWKHUWKDQGHSDUWLQJIURPWKHP6KHZDVFRQFHUQHGQRWZLWK
DEVWUDFWLRQEXWZLWKWKHUHDOQRWZLWKWKRXJKWVRULGHDVEXWZLWKIHHOLQJVQRWZLWK
GLVWRUWLRQRIIRUPDQGHOLPLQDWLRQRIVXEMHFWEXWZLWKUHWDLQLQJWKHP&DUDQID%RRN
-DFNHW
$VDUHVXOWRI&ODXGHO¶VHQGHDYRUWRFRPPXQLFDWHWKHHPRWLRQDOWUXWKIXOQHVVRIKHU
H[LVWHQFHPDQ\DUWKLVWRULDQVKDYHUDQNHGKHUDVDQ³RXWVWDQGLQJFRQWULEXWRUWR6\PEROLVWDUW´
DQLPSRUWDQWODWHWKFHQWXU\PRYHPHQWLQ)UDQFH)UHQFK6\PEROLVWDUWLVWVDWWHPSWHGWR
UHSUHVHQWUHDOLW\LQLWVPRVWKRQHVWIRUPDQGRIWHQLQFRUSRUDWHGVSLULWXDOLW\WKHLPDJLQDWLRQDQG
GUHDPVZLWKLQWKHLUZRUN7KXVWKLVWKHVLVZLOOH[DPLQHZKDWUROHV\PEROLVPSOD\HGLQWKH
VXEMHFWVRIKHUVFXOSWXUHV&KH]&ODXGHOV\PEROLVPZDVQRWSUHVHQWLQUHFRJQL]DEOHUHOLJLRXV
LFRQVDVLWZDVLQWKHZRUNRIPDQ\RWKHUDUWLVWV+HUQRQWUDGLWLRQDODSSURDFKWRV\PEROLVP
LQYROYHGLQWHJUDWLQJVDFUHGHPRWLRQZLWKLQVHHPLQJO\VHFXODUVFHQHV,ZLOOIXUWKHUGLVFXVVKHU
XQLTXHWUHDWPHQWRIVSLULWXDOLW\ODWHULQWKLVWKHVLV
3DXO&ODXGHOWKHDUWLVW¶VEURWKHUDQGPRVWVHQVLWLYHO\DSSUHFLDWLYHFULWLFZURWHRIKHU
ZRUN³&DPLOOH&ODXGHOLVWKHILUVWZRUNHULQLQWHULRU>L]HG@VFXOSWXUH«DZRUNRI&DPLOOH
&ODXGHO«LV«DNLQGRIPRQXPHQWRILQWHULRUWKRXJKW´&DUDQID7KXVWKHUHLVQRGRXEWWKDW
KHUZRUNLQYROYHGDQLQWHQVLW\URRWHGLQGLYLQLW\
)XUWKHUPRUHRQHDUHDIURPZKLFK&ODXGHOVRXJKWUHGHPSWLRQZDVIURPWKHPDOH
RSSUHVVLRQVXUURXQGLQJKHU:RPHQRIWKHODWHWKDQGHDUO\WKFHQWXULHVKDGOLPLWHGDFFHVV
WRDUWLVWLFUHVRXUFHVDQGWKHLUFUHDWLYLW\ZDVFRQVWDQWO\VWLIOHGE\WUDGLWLRQ,Q3DXO&ODXGHO
VDLG³)RUDPDQEHLQJDVFXOSWRULVDFRQVWDQWFKDOOHQJHWRFRPPRQVHQVHIRUDQLVRODWHG
ZRPDQHVSHFLDOO\RQHZLWKP\VLVWHU¶VFKDUDFWHULWLVDSXUHLPSRVVLELOLW\´TWGLQ$\UDO
&ODXVH+HVSRNHWKHVHZRUGV\HDUVDIWHU&ODXGHOZDVLQVWLWXWLRQDOL]HGDQGLWVHHPVDVLIKH
UHOXFWDQWO\EXWILUPO\EHOLHYHGWKDWVKHIDLOHGLQKHUVSKHUHRIVFXOSWLQJ+RZHYHULWLVE\
H[DPLQLQJDQGDQDO\]LQJVHYHUDOSLHFHVIURPSHULRGVLQZKLFKVKHWKULYHGWKDW,ZLOOGHPRQVWUDWH
SUHFLVHO\KRZVKHVXFFHHGHGDWVXUPRXQWLQJWKLVVRFDOOHGLPSRVVLELOLW\
7KXVDIWHULGHQWLI\LQJWKHVSLULWXDOWKHPHVVKHLQWHJUDWHGZLWKLQKHUZRUNZLOOLWEH
SRVVLEOHWRUHYHDOVSHFLILFDOO\KRZWKHVHLGHDVOHGWRWKHPRVWSRLJQDQWWKHPHRIDOOVSLULWXDO
UHGHPSWLRQ"0RUHRYHUZKDWZHUHWKHFRPSRQHQWVOHDGLQJPDQ\)UHQFKDUWLVWVRIWKLVHUDDQG
VRFLHW\WRVHHNUHGHPSWLRQWKURXJKDUWRIDVSLULWXDOQDWXUH"+RZGLGUHGHPSWLRQWKURXJK
&ODXGHO¶VVFXOSWXUHIXQFWLRQDVDPHWKRGRIVHOIKHDOLQJEHIRUHKHULQVWLWXWLRQDOL]DWLRQ"$
WKRURXJKDQDO\VLVRI&ODXGHO¶VOLIHDQGZRUNVZLOOKHOSWRDQVZHUWKHVHTXHVWLRQVDQGPDQ\
PRUH)LQDOO\LWLVUHPDUNDEOHWKDWLQVXFKDUHODWLYHO\VKRUWSHULRGRIWLPHWKURXJK
&DPLOOH&ODXGHOSURGXFHGDVHULHVRIVFXOSWXUHVWKDWVWLOOKDYHWKHSRZHUWRFRPPXQLFDWHWR
PHPEHUVRIPRGHUQVRFLHW\6KHFUHDWHGZRUNVRIEULOOLDQFHPDQ\DXWRELRJUDSKLFDOZKLFK
FRQWLQXHWRVSHDNZLWKSDVVLRQWRWKHKXPDQDQGVSHFLILFDOO\IHPDOHFRQGLWLRQ$VDUHVXOWRI
WKHOHJDF\VKHOHIW,KRSHWKRVHZKRUHDGWKLVDQDO\VLVZLOODJUHHZLWKP\VHOIDQGZLWKWKHWK
FHQWXU\DUWFULWLF0DWKLDV0RUKDUGWWKDW³&DPLOOHUHVWHUDLQRXEOLDEOH´ TWGLQ:LWKHUHOO
&DPLOOHZLOOUHPDLQXQIRUJHWWDEOH
&+$37(5(&67$6<
,IRQHLVWRIXOO\XQGHUVWDQGWKHVWUXJJOHDQGWUDJHG\&DPLOOH&ODXGHOVXIIHUHGWKURXJKRXW
WKHODVWKDOIRIKHUOLIHLWLVQHFHVVDU\WRILUVWXQGHUVWDQGWKHEOLVVVKHH[SHULHQFHGLQKHUHDUOLHU
\HDUV,WLVZLVHWREHJLQZLWKKHUVFXOSWXUH/D9DOVHRU7KH:DOW]RQHRIKHUPRVW
SRLJQDQWSLHFHVZKLFKH[SUHVVHVWKHIHHOLQJRIEOLVVVKHIHOWDVKHUKHDUWDQGWDOHQWFRQQHFWHG
ZLWK5RGLQ¶V7KHTXDOLWLHVWKH\VKDUHGOHGWKHPWDNLQJDSDWKLQWRSDVVLRQDWHORYH,WLV
LPSRUWDQWWRUHPHPEHUWKDW&ODXGHOVDFULILFHGPXFKIRUWKLVKHUILUVWUHODWLRQVKLSDQGWKDWKHU
VRXOZDVHQWLUHO\LQYHVWHGLQLW,QRQHRIKHUOHWWHUVWR5RGLQZKLFKVWLOOH[LVWVVKHZURWHWKDW
ZLWKRXWKLPWKHUH³,O\DWRXMRXUVTXHOTXHFKRVHG¶DEVHQWTXLPHWRXUPHQW´ 5LYLqUH
,QLWLDOO\RQHPLJKWZRQGHUZKDWLVWRJDLQE\ORRNLQJDWWKHLG\OOLFWKHPHVDQGPRPHQWVLQ
&ODXGHO¶VOLIH7KHDUWLFOHLQ/H)LJDURFLWHGHDUOLHUDQVZHUVWKLVTXHVWLRQDQGPDQ\PRUH
)LUVWLQWKHWHQVLRQDQGFRQIURQWDWLRQGHSLFWHGLQWKHPDQ\DUWLVWLFHQGHDYRUVE\ERWK&ODXGHO
DQG5RGLQYLHZHUVOHDUQWKDW³/DIRUFHGH&ODXGHOHVWGHIDLUHGHVDYLHHOOHPrPHO¶HVVHQFHGH
VRQRHXYUH´ 0DGHOLQ7KLVVKRZVWKDWIRU&ODXGHOWKHOLQHEHWZHHQLQWHULRUIHHOLQJVDQG
DUWLVWLFH[SUHVVLRQLVEOXUUHGDQGVKHLQWHQGVLWWREHVR$VDWUXHDUWLVWVKHDLPVWRUHQGHUKHU
OLIHDQGKHUDUWRQHPHOGHGHQWLW\
(FVWDV\DQG/D9DOVH
,QWKHHDUO\V&ODXGHOZDVHQMR\LQJVXFFHVVDWWKHDUW6DORQVDVZHOODVLQKHU
SHUVRQDOOLIH+HUDUGHQWUDSWXUHZLWK5RGLQDVERWKDPHQWRUDQGDORYHUZDVUHIOHFWHGLQPXFK
RIKHUZRUN2QHRIWKHPRVWPRYLQJVFXOSWXUHVIURPWKLVHUDLVWKDWRIDFRXSOHZDOW]LQJ7KLV
SDLULVQRWDVLPSOHVZRRQLQJVHWRIWZRLWLVDQHWKHUHDODPRURXVGXRLQDPRPHQWRIERWK
VHQVXDOLW\DQGSDVVLRQ,Q&ODXGHOZURWHWRWKH0LQLVWU\RI)LQH$UWVUHTXHVWLQJPDWHULDOV
7KHUHLVDOZD\VVRPHWKLQJDEVHQWWKDWWRUPHQWVPH
&DPLOOH¶VVWUHQJWKLVPDNLQJKHUOLIHWKHHVVHQFHRIKHUZRUNV
IRUDPDUEOHYHUVLRQVWDWLQJWKDWVKHKDGILQLVKHGDKDOIOLIHVL]HVWDWXHRIWKHSLHFHDQGWKDW
5RGLQDPRQJPDQ\RWKHUDUWLVWVDSSURYHGRILW,QUHVSRQVHWR&ODXGHO¶VUHTXHVWIRUWKH
FRPPLVVLRQWKH0LQLVWHURI)LQH$UWVVHQW$UPDQG'D\RWDQLQVSHFWRUWRKHUVWXGLRWRHYDOXDWH
WKHSLHFH$\UDO&ODXVH+LVZULWWHQUHSRUWKHOSVXVWREHWWHUXQGHUVWDQGWKHLPSDFWRIWKH
VFXOSWXUH+HVWDWHG³,QKHUJURXS7KH:DOW]ILJ0DGHPRLVHOOH&ODXGHOSUHVHQWVWZR
SHRSOH«ZDOW]LQJDQGLQWHUWZLQHG,ZDQWWRVWDWHWKDWDOOWKHGHWDLOVRIWKLVJURXSUHSUHVHQWD
YLUWXRVRSHUIRUPDQFHDQGWKDW5RGLQKLPVHOIFRXOGQRWKDYHVWXGLHGZLWKPRUHDUWLVWLFILQHVVH
DQGFRQVFLRXVQHVVWKHTXLYHULQJOLIHRIPXVFOHVDQGVNLQ´TWGLQ$\UDO&ODXVH$VDVLGH
QRWH5RGLQZDVQRWXQDZDUHRIKLVVKRUWFRPLQJV,WZDVVWDWHGPXOWLSOHWLPHVWKDW³5RGLQ
HQODFHOHVFRUSVPDLV&DPLOOHIXVLRQQHOHVkPHV´ DQGWKDW³5RGLQOHVHQWVLELHQTX¶LOFKHUFKH
jDFTXpULUFKH]&DPLOOHFHTXLOXLPDQTXp´ 0DGHOLQ,Q&DUDQID¶VERRN$6FXOSWXUHRI
,QWHULRU6ROLWXGHKHDOVRFRQWUDVWVWKHWRQHHPLWWHGIURP5RGLQ¶V7KH.LVVZLWKWKDWRI
&DPLOOH&ODXGHO¶V/D9DOVH+HGHVFULEHVWKHIRUPHUDVVXJJHVWLQJ³FDUQDOORYHPHODQFKRO\
LQWR[LFDWLRQDQGGLVWDQFHEHWZHHQWKHWZRILJXUHV´ZKHUHDVWKHODWWHULV³LQVSLUHGE\DµOLWWOHRI
KHUVRXODQGDOLWWOHRIKHUKHDUW¶´DQGWKHSDLULVWKXV³VLQFHUHDQGWUXWKIXOLQWLPDWHDQG
VHQVXDOO\WUDQTXLO´3DXO&ODXGHOWRRLQVLVWHGWKDWKLVVLVWHU¶VVFXOSWXUHZDVYDVWO\GLIIHUHQW
IURPKHUPHQWRU¶VVHHLQJDVLWZHOFRPHVOLJKWDQGUDGLDWHVWKHLQQHUGUHDPWKDWLQVSLUHGLW
&DUDQID
(YHQ&ODXGLQH0LWFKHOOZKRLQKHUDUWLFOH³,QWHOOHFWXDOLW\DQG6H[XDOLW\&DPLOOH
&ODXGHOWKH)LQ'H6LqFOH6FXOSWUHVV´IRFXVHVRQWKHVH[XDOQDWXUHRIWKHSLHFHRSHQO\DGPLWV
WKDWWKHLOOXVLRQ&ODXGHOZDQWHGWRFUHDWH³RIFKDUDFWHUVHVFDSLQJWKHODZRIJUDYLW\DOVRKDGD
V\PEROLFGLPHQVLRQUHOHDVHIURPWKHPDWHULDOZRUOG´0LWFKHOO6KHDOOXGHVWRWKHLGHDRI
5RGLQLQWHUWZLQHVERGLHVEXW&DPLOOHXQLWHVVRXOV
5RGLQXQGHUVWRRGWKLVVRZHOOWKDWKHORRNHGWR&DPLOOHWRDFTXLUHZKDWKHODFNHG
WKLVFRXSOHZDOW]LQJWRZDUGH[DOWDWLRQDVZHOODVPHQWLRQVWKH³YROXSWXRXVFKDVWLW\´WRZKLFK
2FWDYH0LUEHDXDQG3DXO&ODXGHOERWKUHIHUUHG0LWFKHOO,WLVHYLGHQWWKDWDVWKHVHWZR
ORYHUVVHHPLQJO\WDNHIOLJKWPRUHWKDQPRUWDOSOHDVXUHLVYLVLEOHWKHLUH[SUHVVLRQVLQYROYHD
SHUFHSWLEOHPHDVXUHRIIDLWKIXOWUXVW/pRQ'DXGHWDQLQIOXHQWLDOIULHQGRI3DXO&ODXGHO³JDYHD
V\PEROLFVWDWXVWR&ODXGHO¶VVFXOSWXUH«UHDGLQJWKHQRQUHSUHVHQWDWLRQDODVSHFWRIWKHGUDSHU\DV
DGLVDVVRFLDWLRQIURPWKHPDWHULDOZRUOG´0LWFKHOO+HVWDWHG
7KHFRXSOHFDUULHGDZD\LQDZKLUOZLQGFRQYH\VDGPLUDEO\WKHLPSUHVVLRQRIWXUPRLODQG
YHUWLJR«$URXQGWKHPDQGHPHUJLQJIURPWKHPLVWKHLUDWPRVSKHUHGUHVVRUFORXG
IROGVRIHFVWDV\RUVKLYHULQJDLUZKLFKDUHVLJQLILHGE\LQGHILQLWHDQGDHULDOFXUYHV
0LWFKHOO
%RWK&ODXGHO¶V/D9DOVHDQG&ORWKRGHPRQVWUDWHDSUHRFFXSDWLRQZLWKWKHWKHPHRI
GHVWLQ\DQGPDQ¶VLQFDSDFLW\WRFRQWUROLW<HWYLHZHUVPXVWUHPHPEHUWKDWDOWKRXJK&ODXGHO
VFXOSWHGVFHQHVZKLFKH[SORUHWKHPHDQLQJRIOLIHWKHVXEMHFWRIKHUVFXOSWXUHLVQRWH[LVWHQFH
EXWUDWKHU³RQH¶VUHODWLRQVKLSZLWKH[LVWHQFHLQYROYLQJWKHHPRWLRQVZKLFKDULVHIURPKXPDQ
HQFRXQWHUVZLWKUHDOLW\´0LWFKHOO,WLVWKLVSRZHUIXO\HWP\VWHULRXVFRQQHFWLRQZKLFK
FRPSHOVYLHZHUVWRFRQWHPSODWHWKHGHHSHULPSOLFDWLRQVRI&ODXGHO¶VPDVWHUSLHFHV
,QDQDWWHPSWWRLOOXVWUDWHKRZ&ODXGHOFRQYH\HGKHUIHHOLQJVRIHFVWDV\WKURXJK/D9DOVH
VSHFLILFDOO\,ZLOOH[DPLQHVHYHUDORILWVIRUPDOHOHPHQWVLQGLYLGXDOO\)LUVWWKHVWDQFHRIWKH
WZRGDQFHUVLVYDFLOODWLQJDVWKHRQO\SRLQWRIYLVLEOHFRQWDFWWRWKHJURXQGLVWKHPDOH¶VEDFN
ULJKWIRRWDQGHYHQWKHQKLVNQHHLVEHQWDQGKHFOHDUO\GRHVQRWDSSHDUWREHILUPO\SODQWHG
7KLVFRQYH\VWKHIHHOLQJRIZHLJKWOHVVQHVVDQGVKRZVWKDWWKLVPRPHQW¶VPRYHPHQWLV
HSKHPHUDO$\UDO&ODXVHVWDWHG³0DGHPRLVHOOH&DPLOOH&ODXGHOGDULQJO\WRRNRQZKDWPD\EH
WKHPRVWGLIILFXOWWRFRQYH\IRUDVFXOSWRUDGDQFHPRYHPHQW«6RWKDWLWGRHVQRWUHPDLQIUR]HQ
LQVWRQHLQILQLWHDUWLVUHTXLUHG0DGHPRLVHOOH&ODXGHOKDGWKLVDUW´/DWHULQKHUDQDO\VLV
VKHDGGVWKDWWKHLPEDODQFHFUHDWHGE\WKH³REOLTXHVWDQFHRIWKHHPEUDFLQJILJXUHVDFFHQWXDWHG
E\WKHORQJIORZLQJWUDLQRIWKHZRPDQFDSWXUHVERWKWKHPRYHPHQWRIWKHGDQFHDQGWKHEOHQG
RIVSLULWXDODQGVHQVXDOLW\VRFKDUDFWHULVWLFRI&DPLOOH¶VVFXOSWXUHV´$\UDO&ODXVH7KLV
EOHQGRIERWKWKHVDFUHGDQGWKHFRUSRUHDOZKLFK3DXO&ODXGHOFRLQVDV³YROXSWXRXVO\FKDVWH´LV
ZKDWWLPHDQGDJDLQUHQGHUVKHUZRUNVVRVWLUULQJ&RQWLQXLQJWRH[DPLQHWKHVWDQFHWKH
ZRPDQ¶VSRVWXUHLVGLDJRQDOKRZHYHULWLVLPSRUWDQWWRQRWLFHWKDWVKHLVQRWOHDQLQJ
GHSHQGHQWO\RQWKHPDQ+HUDUPVDUHDPRURXVO\FODVSLQJKLPDQGLWLVHYLGHQWWKDWVKHLV
HQUDSWXUHGLQWKLVURPDQWLFPRPHQWEXWVKHLVQRWGHSLFWHGDVGHVSHUDWHO\FOLQJLQJRQWRKHU
SDUWQHUIRUVXSSRUW7KLVDORQJZLWKWKHIDFWWKDWWKHVFDOHRIWKHZRPDQLVQHDUO\SURSRUWLRQDWH
WRWKDWRIWKHPDQZRXOGSUREDEO\KDYHEHHQTXLWHHPSRZHULQJIRU)UHQFKZRPHQRIWKLVHUD
1H[WWKHDQDWRPLFDOGHWDLODQGFRUUHFWQHVVZLWKZKLFK&DPLOOH&ODXGHOZRUNVLV
DVWRXQGLQJ7KHPXVFOHVVNLQERQHVKDLUDQGGUDSHU\DUHHDFKPHWLFXORXVO\FUDIWHGDQGLQDQ
XQGHUWDNLQJDVXQIRUJLYLQJDVFDUYLQJVROLGVWRQHWKLVLVWUXO\DIHDW7KLVLVHVSHFLDOO\WUXHLQ
WKHFDVHRIZRPHQDUWLVWVZKRGLGQRWKDYHDFFHVVWRVRSKLVWLFDWHGDUWWUDLQLQJDQGSDUWLFXODUO\WR
WKHOLYHDQGQXGHPRGHOV
0RYLQJRXWZDUGWRWKHFORWKLQJRQWKHZRPDQWKHFKRLFHWRLQFRUSRUDWHDIORZLQJGUHVV
ZDVQRWDVLPSOHGHFLVLRQ7KHSUHYLRXVO\PHQWLRQHGUHSRUWUHFRUGHGE\$UPDQG'D\RW
XQIRUWXQDWHO\ZDVQRWHQWLUHO\SRVLWLYH&RQFHUQLQJWKHRULJLQDOQXGHVWDWXHDVDZKROHKH
VWDWHGWKDW³«LQVSLWHRILWVXQTXHVWLRQDEOHYDOXHWKHUHDOLVWLFDQGYLROHQWDFFHQWWKDWHPDQDWHV
IURPLWIRUELGVSODFLQJLWLQDSXEOLFVSDFH´TWGLQ$\UDO&ODXVH,IRQHKHDUNHQHGEDFNWR
WKHFRQGLWLRQRI)UHQFKVRFLHW\DWWKDWWLPHRQHZRXOGOHDUQWKDWZRPHQZHUHRIWHQORFNHGRXW
RIFHUWDLQVXEMHFWVVXFKDVQXGHVDQGZKDW¶VPRUHWKHLUWDOHQWZDVZLGHO\FRQVLGHUHGWREH
LQIHULRU2QHRI'D\RW¶VILQDOUHPDUNVVWDWHGWKDWKHZDVERWKHUHGE\WKH³VXUSULVLQJVHQVXDOLW\
HPDQDWLQJIURPDVFXOSWXUHFRPLQJIURPWKHKDQGVRIDZRPDQ´TWGLQ$\UDO&ODXVH
+RZHYHUSRVVLEO\GXHWRWKHLQVSHFWRU¶VIULHQGVKLSZLWK5RGLQKHGLGQRWGLVPLVVWKHSLHFH
HQWLUHO\+HDGYLVHG&DPLOOHWR³GUHVVKHUILJXUHV´DQGWR³FKRRVHWKHW\SHRIFORWKLQJWKDW
ZRXOGDOORZKHUWRUHYHDODVPXFKRIWKHERGLHVDVVKHVDZILW´TWGLQ$\UDO&ODXVH
&RQWUDU\WRKHUQDWXUHVKHFRQIRUPHGDQGLQDOHWWHUWRWKH'LUHFWRURI)LQH$UWVVKHZURWH
³'XULQJWKHZKROHVXPPHU,GLGVWXGLHVRIGUDSHULHVRQWKHVDPHJURXSDQGWKH\DUHFRPSOHWHG
,DPQRZUHDG\WRVXEPLWWKHPDJDLQ«´$\UDO&ODXVH$IWHUDOOZDVVDLGDQGGRQHDOO
YLHZHUVLQFOXGLQJ&ODXGHODJUHHGWKDWWKHGUDSHU\DGGHGDZKLUOLQJGLPHQVLRQWKDWKDGQRWEHHQ
SUHVHQWLQWKHRULJLQDOYHUVLRQ,QKHUELRJUDSK\$/LIH$\UDO&ODXVHVWDWHG³:KDW
FKDUDFWHUL]HVWKHOLJKWQHVVRIWKHZDOW]LVWKHUDSLGWZLUOLQJRIYHLOVWKHUK\WKPLFVSLQQLQJRI
GUDSHULHVZKLFKJLYHVZLQJVWRWKHGDQFHUV´$\UDO&ODXVH
&RQWLQXLQJRQWRWKHIDFLDOH[SUHVVLRQVWKHPDQ¶VIDFHLVWLOWHGGRZQZDUGDQGEXULHG
WHQGHUO\LQWKHVKRXOGHURIKLVORYHU7KLVSRVLWLRQFUHDWHVDQLQWLPDWHWRQH\HWQRWLFHDEO\
LOOXVWUDWHVKLVGHYRWLRQ/LNHZLVHWKHZRPDQ¶VH\HVDUHFORVHGDVVKHGHQLHVRQORRNHUVWKH
SULYLOHJHRIIXOO\XQGHUVWDQGLQJKHUEOLVV7KHIXQFWLRQRIWKLVSLHFHLVQRWWRH[SRVHWKHEHDXW\
RIWKHGDQFHUVUDWKHULWVSXUSRVHLVWRFDSWXUHDGHOLFDWHHPRWLRQLQLWVIOHHWLQJPRPHQW
9LHZHUVRXJKWWRIHHOSULYLOHJHGWRH[SHULHQFHWKHHFVWDV\ZKLFKH[XGHVIURPWKHOLIHOLNHQDWXUH
RIWKHSLHFH
1RZOHWXVH[DPLQHWKHSOHDVXUHWKLVSLHFHFRQYH\VZKLFKSHUKDSVSDUDOOHOVWKHVDPH
KDSSLQHVV&ODXGHOZDVH[SHULHQFLQJDWWKLVWLPHLQKHUOLIH$UGHQWO\LQORYHZLWK5RGLQDQG
ILQDOO\UHFHLYLQJVRPHUHFRJQLWLRQIRUKHUZRUNVKHDSSURDFKHGWKHKHLJKWVRIDUDSWXUHWKDWVKH
ZRXOGQHYHUNQRZDJDLQ,WLVVLPSOHWRILQGUHFRUGHGSURRIRIWKHVRXUFHRI&ODXGHO¶V
KDSSLQHVVIRULWVHHPVPXFKRI3DULVNQHZRI5RGLQ¶VSURIHVVLRQDODQGSULYDWHDGPLUDWLRQRI
KHU³/HVFXOSWHXU-XOHV'HVERLVWpPRLJQHµ5RGLQTXLDWRXWGHVXLWHUHFRQQXHQHOOHODJUDQGH
DUWLVWH«ODFRQVXOWHOXLPrPHVXUWRXWHFKRVH6XUFKDTXHGpFLVLRQjSUHQGUHLOGpOLEqUHDYHF
HOOH¶´ TWGLQ0DGHOLQ5RGLQIHOWDQGVSRNHOLNHDEDVKIXOORYHU³5RGLQV¶pSDQFKHHQGH
QRPEUHX[FRXUULHUVFRPPHXQDPRXUHX[WUDQVLDXSUqVGHµODGLYLQLWpPDOIDLVDQWHTXHM¶DLPH
DYHFIXUHXU¶´ TWGLQ0DGHOLQ)LQDOO\LQDUHFHQWO\SXEOLVKHGFROOHFWLRQRI
FRUUHVSRQGHQFHVDQLQVWDQFHRI5RGLQ¶VH[WUHPHORYHLQFDQEHIRXQGZULWWHQLQKLVRZQ
KDQG³-HQ¶HQSXLVSOXV-HQHSXLVSOXVSDVVHUXQMRXUVDQVWHYRLU6LQRQO¶DWURFHIROLH&¶HVW
ILQLMHQHWUDYDLOOHSOXV´ TWGLQ5LYLqUH
8SRQFKDQJLQJSHUVSHFWLYHVDIWHUVRUWLQJWKURXJKWKHFRUUHVSRQGHQFHVWKDWZHUHQRWORVW
RUGHVWUR\HGDQGUHDGLQJHDFKOHWWHUWKDWUHPDLQVEHWZHHQ&ODXGHODQG5RGLQLWKDVEHHQ
IDVFLQDWLQJWRZLWQHVVWKHGUDVWLFGLIIHUHQFHVGLVWLQJXLVKLQJWKHZD\VWKH\H[SUHVVHGWKHLU
IHHOLQJVIRURQHDQRWKHU$PRQJDOOWKHOHWWHUVWKHUHDUHYHU\IHZPRPHQWVLQZKLFK&ODXGHO
RSHQVKHUVHOIXSWRYHUEDOL]HKHUDGRUDWLRQ7KHRQHLQVWDQFHZKLFKFULWLFVRIWHQHPSKDVL]HZDV
ZULWWHQDWWKHKHLJKWRIWKHLUREVHVVLRQZKHQPDQ\EHOLHYHKHUWRKDYHEHHQFDUU\LQJ5RGLQ¶V
FKLOG,Q-XO\RIVKHHQGVKHUOHWWHUE\VD\LQJ³-HFRXFKHWRXWHQXHSRXUPHIDLUHFURLUH
TXHYRXVrWHVOjPDLVTXDQGMHPHUpYHLOOHFHQ¶HVWSOXVODPrPHFKRVH 5LYLqUH
$SDUWIURPWKLVKRZHYHUWKHPDMRULW\RIKHUOHWWHUVDUHILOOHGZLWKOHVVSDVVLRQDWH\HWFDULQJ
LQTXLULHV6KHDVNVDIWHUKLVKHDOWKKLVZRUNDQGGLVFXVVHVWKHLUYLHZVRQDYDULHW\RIDUWLVWV
FULWLFVPRGHOVPDWHULDOVDQGRIIHUVKLPDGYLFH+HUDSSURDFKIRUFRQYH\LQJKHUHFVWDV\ZDV
7KHVFXOSWRU-XOHV'HVERLVWHVWLILHV³5RGLQZKRLQVWDQWO\UHFRJQL]HGWKHJUHDWDUWLVWZLWKLQ&DPLOOHFRQVXOWVKHU
LQHYHU\WKLQJ:LWKHDFKGHFLVLRQWREHPDGHKHGHOLEHUDWHVZLWKKHU
5RGLQSRXUVRXWKLVVRXOLQQXPHURXVOHWWHUVOLNHDEDVKIXOORYHUEHVLGH³WKHHYLOGLYLQLW\WKDW,ORYHZLWKDIXU\´
,FDQQRWJRRQ,FDQQRORQJHUVSHQGRQHGD\ZLWKRXWVHHLQJ\RX2WKHUZLVHLW¶VGUHDGIXOPDGQHVV,W¶VRYHU,
FDQQRORQJHUZRUN
,VOHHSHQWLUHO\QXGHWRPDNHP\VHOIEHOLHYHWKDW\RXDUHKHUHEXWZKHQ,ZDNHXSLWLVQ¶WWKHVDPHWKLQJ
IDUSXUHUWKDQ5RGLQ¶V&RPSDULVRQVEHWZHHQKLVVFXOSWXUH7KH.LVVDQGKHU6DNRXQWDOD
KDYHRIWHQEHHQPDGHWRSURYHWKLV+RZHYHUWKLVSLHFHZLOOEHDGGUHVVHGODWHUDVWKHWKHPHRI
UHGHPSWLRQLVEURXJKWLQWRWKHOLJKW)LQDOO\LWLVHYLGHQWWKDWLQWKHHDUO\\HDUVRIKHUFDUHHU
&ODXGHOFRQVLGHUHGUHGHPSWLRQWREHDTXDOLW\DFFHVVLEOHWKURXJKORYHDORQH,WZDVQRWXQWLOVKH
EHJDQWRH[SHULHQFHORVVDQGVXIIHULQJWKDWVKHVRXJKWGHOLYHUDQFHWKRXJKGLIIHUHQWFKDQQHOV
$ORQJZLWKUHFLSURFDOORYHRQHFDQFHUWDLQO\LPDJLQHWKDW&ODXGHOIHOWEXR\HGXSDQG
YDOLGDWHGE\WKHFRQVWDQWVXSSRUW5RGLQJUDQWHGKHU7KLVFRPSDULVRQRIWKHLUFRQYH\DQFHRI
IHHOLQJVVKRZVWKDWHYHQWKURXJKRXWWKHPRPHQWVRISDVVLRQDWHUDSWXUHVKHGLGQRWORVHIRFXV
2QHPLJKWDOVRDWWHVWWKDWDVLJQLILFDQWSRUWLRQRIWKHFDXVHRIKHUKDSSLQHVVDWWKLVWLPHLV
VRPHWKLQJDSDUWIURP5RGLQ6KHFHUWDLQO\PHULWHGSULGHLQKHUVHOIDQGSOHDVXUHLQKHUVXFFHVV
)RUD)UHQFKZRPDQDWWKHWXUQRIWKHWKFHQWXU\VKHZDVPDNLQJJUHDWHUVWULGHVWKDQPDQ\
HYHUWKRXJKWSRVVLEOH
,Q0D\/RXLV9DX[HOOHVDQXQZDYHULQJVXSSRUWHURI&ODXGHOSUDLVHGKHULQ/H
0RQGHLOOXVWUpE\VD\LQJ
:LWK%HUWKH0RULVRW&DPLOOH&ODXGHOLVWKHPRVWEHDXWLIXOQDPHRIIHPLQLQHDUWDWWKH
HQGRIWKHQLQHWHHQWKFHQWXU\(XJqQH%ORW>&ODXGHO¶V@DUWGHDOHUDQGGHIHQGHUZURWH
MXVWO\WKDWVKHZDVWR5RGLQZKDW0RULVRWZDVWR0DQHW(DFKRQHZRUNLQJQH[WWRD
FUXVKLQJPDVWHUNHHSVKHURZQSHUVRQDOLW\><HV@&ODXGHO«RZHVVRPHWKLQJWRWKH
PDVWHURI0HXGRQ5RGLQKHPDUNHGKHUZLWKKLVWRXFKIRUPHGKHUDVKHPRGHOHGFOD\
%XWWKLVUXVWLFZRPDQIURP/RUUDLQHKDUGZLOOIXOXQWDPDEOHUHPDLQHGKHUVHOI«+HU
SRUWUDLWVH[SUHVVPRUHQRELOLW\HOHYDWLRQPDMHVW\DQGWKHJURXSVFUHDWHGE\&DPLOOH
&ODXGHODUHHQGXULQJPDVWHUSLHFHV«TWGLQ$\UDOFODXVH
$WWKHWXUQRIWKHFHQWXU\ILQDOO\UHFHLYLQJUHFRJQLWLRQIRUKHUZRUN&ODXGHO¶VWDOHQW
GXULQJWKLVSHULRGZDVSXEOLFDOO\UHFRJQL]HGDVEHLQJFRPSDUDEOHWR&ODXGH'HEXVV\¶VPXVLF
&ODXGHODQG'HEXVV\¶VIULHQGVKLSZDVPXWXDOO\SURIRXQGVHHLQJDV&DPLOOHLQWHQGHGWR³VDYRU
PXVLFWKDWFRQYH\HGWKHHPRWLRQVVKHZDVWU\LQJWRH[SUHVVLQKHUVFXOSWXUHV´DQG'HEXVV\
GLVFRYHUHGLQKHUZRUNV³DGHHSIHHOLQJRILQWLPDF\OLNHDQHFKRRIVHFUHWRUIDPLOLDUHPRWLRQV
FRPLQJIURPZLWKLQ´$\UDO&ODXVH$IWHUVHYHUDOVPDOOHUYHUVLRQVRI/D9DOVHZHUH
SURGXFHG&ODXGHOJDYHRQHWR'HEXVV\ZKLFKKHWUHDVXUHG,WZDVVDLGWKDW³/D9DOVHOHIW
>'HEXVV\¶V@VWXG\RQO\ZKHQKHGLG´$\UDO&ODXVH,WLVVDIHWRDVVXPH&ODXGHOEHOLHYHG
PXVLFWREHDWUXWKIXOIRUPRIRXWZDUGH[SUHVVLRQRILQWHULRUHPRWLRQMXVWDVVKHLQWHQGHGKHUDUW
WREH
'HVSLWHKHUVXFFHVVLQWKHH\HVRIWKHSXEOLFDQGKHUFRQWLQXHGHIIRUWVWRSOHDVHWKH
0LQLVWU\VKHZDVIRXQGLQDGHTXDWHLQWKHHQG$\UDO&ODXVHH[SODLQHG³:KHQ&DPLOOHFKRVHWR
V\PEROL]HUK\WKPPHORG\DQGLQWR[LFDWLRQZLWKDVH[XDOXQGHUWRQHVKHVWHSSHGLQWRDQDUHD
ORQJRIIOLPLWVWRZRPHQ%HFDXVHRIWKLVKHUPDUEOHYHUVLRQZDVQHYHUUHDOL]HG´2FWDYH
0LUEHDXLQWXLWLYHO\H[SUHVVHGWKLVIDWHRIWKLVPHWDSKRULFDOEXWV\PEROLFFRXSOHZKHQKHDVNHG
³0DLVRYRQWLOVGDQVO¶LYUHVVHGHOHXUkPHHWGHOHXUFKDLUVLpWURLWHPHQWMRLQWHV"(VWFHj
O¶DPRXUHVWFHjODPRUW"/HVFKDLUVVRQWMHXQHVHOOHVSDOSLWHQWGHYLHPDLVODGUDSHULHTXLOHV
HQWRXUHTXLOHVVXLWTXLWRXUQRLHDYHFHX[EDWFRPPHXQVXDLUH´ TWGLQ'H%D\VHU7KH
LQVWDQFHRI7KH:DOW]ZDVRQO\WKHEHJLQQLQJRIPDQ\GUHDPVIDLOLQJWRFRPHWRIUXLWLRQ6DGO\
WKLVIDLU\WDOHEHJLQQLQJPHHWVDWUDJLFGHPLVHDVOLWWOHE\OLWWOH&ODXGHO¶VOLIHEHJLQVDVSLUDOLQJ
GHVFHQW
%XWZKHUHDUHWKH\JRLQJLQWKHHXSKRULDRIWKHLUVRXOVDQGWKHLUIOHVKVRWLJKWO\MRLQHG",VLWWRZDUGORYHLVLW
WRZDUGGHDWK"7KHLUIOHVKLV\RXQJLWSXOVHVZLWKOLIHEXWWKHGUDSHU\ZKLFKHQFLUFOHVWKHPZKLFKIROORZVWKHP
ZKLFKWXUQVZLWKWKHPEHDWVOLNHDVKURXG
&+$37(5$*21<
&ORWKR$JRQ\3HUVRQLILHG
7KHUHFDQEHQRGDZQZLWKRXWGDUNQHVVDQGQRSOHDVXUHZLWKRXWSDLQ7KXVLWLVZLVHWR
FRQWLQXHDQDO\]LQJ&DPLOOH&ODXGHO¶VZRUNVE\IRFXVLQJLQRQWZRRIKHUSLHFHVZKLFKFRQYH\D
WKHPHRIDGHVRODWHIDOO7KHSDLUZKLFKH[HPSOLI\LWEHVWDUH/¶kJHP€URU7KH$JHRI0DWXULW\
DQG&ORWKR'XHWRWKHSDUDOOHOHYHQWVLQWKHDUWLVW¶VSHUVRQDOOLIHWKHWUDJHG\
DQGSDLQSURMHFWHGWKURXJKKHUFKDUDFWHUVUHDFKYLHZHUVRQDSURIRXQGOHYHO
%HJLQQLQJZLWK&ORWKRILJFRPSOHWHGLQWKHUHLVDQDEUXSWDQGEODWDQWO\YLVLEOH
FKDQJHLQWKHWKHPDWLFHOHPHQWV&ODXGHOFKRVHWRLQFRUSRUDWHLQKHUZRUNDVGLVWDQFHJUHZ
EHWZHHQKHUDQG5RGLQ7KLVGLVWDQFHVWHPPHGIURPWKHIDFWWKDWWKRXJK5RGLQORYHG&DPLOOH
KHUHIXVHGWRFRPPLWKLPVHOIVROHO\WRKHUDQGEHFDXVHRIWKLVVKHIHOWH[SORLWHG6KHKXPEO\
IROORZHGKLVDUWLVWLFJXLGDQFHDQGJDYHKLPKHDUWDQGVRXOZLWKRXWKHVLWDWLRQ\HWWKH
FRPPLWPHQWZDVQRWPXWXDO,QDOHWWHUWRKHUEURWKHU3DXOVKHDWWHVWV³>5RGLQ@XVHVPHLQDOO
VRUWVRIZD\V´TWGLQ&DUDQID7KLVWRUPHQWDQGIUXVWUDWLRQFRQYH\HGWKURXJK&ORWKRDQG
/¶kJHP€UEHJVWREHH[DPLQHG
2QHPXVWILUVWXQGHUVWDQGWKHKLVWRU\EHKLQGWKH*UHHNP\WKRORJLFDOFKDUDFWHU&ORWKR
EHIRUHEHLQJDEOHWRIXOO\JUDVSWKHLPSDFWRIWKHVWDWXHRIWKLVHQWDQJOHGZRPDQ$VOHJHQG
WHDFKHV&ORWKRZDVWKH\RXQJHVWRIWKH7KUHH)DWHVEXWRQHRIWKHROGHVWRIWKHJRGGHVVHVDQG
VKHZDVWKHGDXJKWHURI=HXVDQG7KHPLV6KHZDVWKHVSLQQHURIWKHWKUHDGRIKXPDQOLIHDQG
WKXVKDGWKHSRZHUWRGHWHUPLQHKRZORQJDFHUWDLQSHUVRQFRXOGOLYH6KHZDVDOVRNQRZQWREH
³WKHGDXJKWHURIQLJKW´DQDPHZKLFKLQGLFDWHGWKHGDUNQHVVDQGREVFXULW\RIKXPDQGHVWLQ\
+HUSRZHURYHUIDWHZDVVRJUHDWWKDWQRWHYHQWKHJRGVGDUHGGLVWXUEKHU7KRPDV³&ORWKR´
7KLVEHLQJVDLG&DPLOOH&ODXGHOSXUSRVHIXOO\FKRVHKHUVXEMHFWWRSDUDOOHOKHUIHDUDQG
DZDUHQHVVRIKHUIRUWKFRPLQJLQHYLWDEO\WUDJLFIDWH&DUDQIDLQKLVDQDO\VLVVWDWHVWKDW
&ODXGHO¶VFKRLFHDQGH[HFXWLRQRIWKLVZRPDQ³UHIOHFWVKHUXQGHUVWDQGLQJRIWKHFRQWLQJHQF\DQG
RIWKHIUDJLOLW\RIH[LVWHQFH&ODXGHO¶V&ORWKRH[HPSOLILHVH[LVWHQFHDVFORVHGZLWKLQWKLVZRUOG
ZLWKQRIXWXUHKRSHEXWGHDWKLWVHOI%HIRUHH[DPLQLQJWKHSXEOLF¶VUHDFWLRQWRWKLVSLHFHLW
LVQHFHVVDU\WRH[DPLQHWKHIRUPDOHOHPHQWVLQERWKWKHLUUHDOLVWLFDQGV\PEROLFGHWDLOLQRUGHUWR
KDYHFRPSOHWHFRQFHSWLRQZLWKZKLFKWRVFUXWLQL]H
)LUVWLQ&ODXGHO¶VVFXOSWXUH&ORWKRKHU*RGGHVVRI)DWHDIHPDOHQXGHVWDQGVDV³«DQ
LPDJHRISK\VLFDOGHFD\DQGWKHLQWLPDWLRQVRIPRUWDOLW\´:LWKHUHOO7KLVLVYLVLEOHWKURXJK
VHYHUDODVSHFWVRIWKHSLHFH)LUVWKHUWKLQVDJJLQJVNLQVHHPVWRKDQJORRVHO\LQGLFDWLQJ
H[KDXVWLRQZKLOHKHUERQHVSURWUXGHDVLIXQGHUVWUDLQIURPWKHZHLJKWRIOLIH¶VKDUGVKLSV
+HUH\HVWKRXJKVRPHZKDWKLGGHQLQWKHVKDGRZVDUHZHDNO\IRFXVHGDQGDSSHDUWREH
SDUWLDOO\FORVHG&DUDQIDGHVFULEHVWKHPDVEHLQJ³«VHWLQWKHGHHSVRFNHWVRIWKLVDJLQJDQG
DJHOHVVROGZRPDQZKRKDVEHHQGUDLQHGRIKHUSUHYLRXVERGLO\VWUHQJWKDQGEHDXW\´
+HUPRXWKWKRXJKMXVWDJULPDFHLV³WRRWKOHVVDQGWLJKWO\VKXWDQDOOXVLRQWRWKHVLOHQFHRI
GHDWK´&DUDQID+HUQHFNVWUDLQVLQEHZLOGHUPHQWDWWKHEUXWDOLW\RIIDWHDQGKHUOHIWDUP
UHDFKHVRXWLQDIHHEOHDWWHPSWWRIUHHKHUVHOI³+HUVWDQFHLVWKDWRIDWUHHURRWHGE\HUDVRI
WLPHSDVVHGDQGXQDEOHWRVWUHWFKLWVOLPEV´:LWKHUHOO7KHVSLUDOLQJOLQHVUXQQLQJWKHIXOO
OHQJWKRIWKHVWRQHDORQJZLWKWKHSHUSOH[HGGLVWRUWHGDQGFOHQFKHGMDZERQHFRQYH\WKDWWKLV
WRUPHQWHGZRPDQLVXQVXUHKRZVKHZLOOFDUU\RQ+HUKHDGOHDQV³KHDYLO\WRWKHULJKWXQGHUWKH
ZHLJKWRIKHUORQJKDLUZKLFKIRUPVDNLQGRIYDXOWDURXQGKHUHQFLUFOLQJKHUGRZQWRKHU
NQHHV´&DUDQID
7KHRSSUHVVLYHPDQHRIKDLULVRQHRIWKHPRVWIDVFLQDWLQJIHDWXUHVRIWKHVFXOSWXUH7KH
ORQJVWUDQGVV\PEROLFDOO\HYRNHWKHWKUHDGVRI&ODXGHODQG5RGLQ¶VUHODWLRQVKLSDQGWKHWKUHDGV
RI&ODXGHO¶VOLIHEHIRUHWKH\DUHEUXWDOO\FXW7KHLUWKLFNWLJKWO\ZLQGLQJTXDOLW\DGGVWRWKHLGHD
RIHQWUDSPHQW/H1RUPDQG5RPDLQVWDWHV³)URP*LJDQWLWR/D3HWLWH&KDWHODLQHWR&ORWKR
&ODXGHOJLYHVKDLUDOLIHRILWVRZQWKHORFNVRI&ORWKRDUHGHQVHVKRRWVOLNHWKHURRWVRID
WURSLFDOWUHHDVPDOHYROHQWDV«DVHUSHQW«´7KLVGHVFULSWLRQHYRNLQJEUXWDODQG
XQIRUJLYLQJVWUHQJWKOHDYHVQRURRPIRUYLHZHUVWRKRSHIRUDQ\RWKHUIDWHIRUWKHVXIIHUHUWKDQ
GHDWK3DXO&ODXGHOKLPVHOIGHVFULEHGGHDWKDVDYHU\ROGZRPDQZLWKKDLUZKLWHOLNHFRWWRQ
DQGWKHVSLGHUZHEVRIPDQ\FHQWXULHVEOXUULQJKHUILJXUHTWGLQ&DUDQID
2FWDYH0LUEHDXGHVFULEHG&ORWKRDVD³*KDVWO\)DWH«2OGHPDFLDWHGKLGHRXVIOHVK
IDOOLQJKHDYLO\OLNHUDJVDORQJKHUIODQNVZLWKHUHGEUHDVWVIDOOLQJOLNHGHDGH\HOLGVWKHVFDUUHG
EHOO\ORQJOHJVPDGHIRUWHUULEOHMRXUQH\VWKDWQHYHUHQGDJLOHDQGDQ[LRXVOHJVLQZKLFKWKH
VWULGHVPRZKXPDQOLYHVVKHODXJKVLQWRKHUPDVNRIGHDWK´&DUDQID,QGHHGWKH
KHOSOHVVKRSHOHVVDQJXLVKLQJDQGSDLQIXOWKHPHWKDWLVHPLWWHGWKURXJK&ORWKRHQFRXUDJHV
YLHZHUVWREHOLHYHWKDWWKHDUWLVWKHUVHOIIHOWORVWSRZHUOHVVDQGWKDWOLIHZDVPHDQLQJOHVVDWWKH
PRPHQWRIKHUVFXOSWXUH¶VIRUPDWLRQ7KRXJKYLHZHUVDUHVWULFWO\OLPLWHGWRRQHPRPHQWLQWKH
SDLQIXOOLIHRIWKLVZRPDQ¶VH[LVWHQFHRQHPRPHQWLVVXIILFLHQWWRIHHODQGHYHQH[SHULHQFHKHU
YXOQHUDELOLW\DQGGUHDG&DUDQIDGHVFULEHVKHUVORZUHOHQWOHVVPRYHPHQWDVEHLQJKRSHOHVVO\
³DWWKHPHUF\RIWLPH´EHFDXVH³«LQ&ORWKROLIHLVFRQVXPPDWHGLQDQXQHQGLQJGHDWK´
7KHPRVWDJRQL]LQJIHDWXUHWRREVHUYHLV&ORWKR¶VSHUFHSWLEO\VZROOHQDEGRPHQ7KLV
VFXOSWXUHZDVFRPSOHWHGQRWORQJDIWHUVKHVXIIHUHGWKHXQZDQWHGDERUWLRQRI5RGLQ¶VFKLOG
7KLVEUXWDOUHPLQGHUWRKLPRIKHUDIIOLFWLRQVDVDUHVXOWRIKLVORYHPXVWKDYHEHHQGLIILFXOWIRU
KLPWRVZDOORZ+HLQWXUQUHVSRQGHGGHIHQVLYHO\E\UHPLQGLQJKHURIDQRWKHUDOOHJRU\KH
PDGHUHIHUHQFHWR(XJqQH'UXHW¶V)DWHDQGWKH&RQYDOHVFHQWILJLQZKLFKDQRWKHU
SHUVRQLILHGYHUVLRQIDWHLVSRUWUD\HGDVVWULYLQJWRSURWHFWWKH\RXQJJLUOLQKLVDUPV+RZHYHU
5RGLQ¶VDFWLRQVDVWLPHSURJUHVVHGVKRZHGQRPRUHFRPPLWPHQWWKDQWKH\SUHYLRXVO\KDG
6HHLQJDVKHVKDUHGDQDWHOLHUZLWK&ODXGHODQGWKH\VWXGLHGWRJHWKHUZHVHHVLPLODULWLHVWR
&ORWKRLQ5RGLQ¶V6KHZKRZDVWKH+HOPHW0DNHU¶V2QFH%HDXWLIXO:LIHILJDQG-XOHV
'HVERLV¶7KH0LVHU\ILJEXW³«IDUIURP>VROHO\@GZHOOLQJRQWKHVDGQHVVDQG
SK\VLFDOGHJHQHUDWLRQRIROGDJH>&ODXGHO@WUDQVFHQGVWKLV«´/H1RUPDQG5RPDLQ7KH
V\PEROLVPWDNHQIURPKHUH[LVWHQFHDORQJZLWKWKHGHOLEHUDWHGHWDLOVERWKUHQGHUKHUYHUVLRQ
VXSHULRUO\PRUHFRPPDQGLQJ
6HYHUDOFULWLFVLQVLVWWKDWLQVFXOSWLQJ&ORWKR&ODXGHODOOXGHGWR0LFKHODQJHOR¶VVHULHVRI
VODYHVFXOSWXUHVILJDVZHOODVWR'RQDWHOOR¶V0DJGDOHQH3HQLWHQWILJ0DGHOLQ7KH
VWDQFHRIHDFKSLHFHLVVLPLODU\HWWKHH[SUHVVLRQVRIWKHWKUHHGLIIHUVLJQLILFDQWO\:KLOH&ORWKR
DSSHDUVKRSHOHVVHQWDQJOHGLQKHUZHERIIDWH0LFKHODQJHOR¶V'\LQJ6ODYHORRNVKHDYHQZDUGLQ
DQHIIRUWWRWUDQVFHQGWKHPDWHULDOZRUOG'RQDWHOOR¶V0DU\OHQGVDVLPLODUH[SUHVVLRQDVVKH
SHDFHIXOO\RIIHUVDSUD\HU,QFRPSDULVRQ&ORWKRLQYROYHVDTXLWHGLIIHUHQWVHQWLPHQW7KH
TXHVWLRQRIH[LVWHQFHVHHPVWREHZRYHQWKURXJKWKHZRPDQ¶VKDLUDQGWKHIUDJLOHIOHHWLQJ
QDWXUHRIOLIHLVYLVLEOHZLWKLQWKHZHDNHQHGVWDWHRIKHUERG\&ODXGHOLQGHHGVXFFHHGHGDW
WUDQVFHQGLQJDQRWKHUZLVHRUGLQDU\VFHQHLQWRDFRPSHOOLQJKHDUWZUHQFKLQJILJXUHE\ZKDW/H
1RUPDQG5RPDLQFDOOV³KHUVSLULWXDOYLVLRQ´DQGZKDW,EHOLHYHWREHDQH[FHSWLRQDOO\FRPSOH[
DQGPXOWLIDFHWHGDSSURDFK%\KHDUNHQLQJWRWKHVHKLVWRULFDOPDVWHUVDQGDSSO\LQJKHURZQ
YLUWXRVLW\VKHWULXPSKVILHUFHO\
+HOHQD%ODYDWVN\VXJJHVWHGWKDWVLQFHDUWLVWVZHUHRIWHQUHIXVHGDQ
H[SODQDWLRQE\WKHPRGHUQWKH\KDGQRRWKHUFKRLFHEXWWRWXUQLQWKHLUSHUSOH[LW\WRWKHDQFLHQW
ZLVHRQHVZKRZHQWEHIRUHWKHPTWGLQ+DUULVRQ,QGHHG5RGLQWRRORRNHGEDFNWR
0LFKHODQJHORDQGHDUOLHUPDVWHUV\HWKHGLGVRLQSXUVXLWRIWHFKQLTXHEDVHGLQVSLUDWLRQ
&ODXGHOLQFRQWUDVWORRNHGWRWKHSDVWIRUFRQWH[WXDOLQVLJKWV6KHVRXJKWWROHDUQKRZWKHVH
DUWLVWVLQFRUSRUDWHGVSLULWXDOLW\ZLWKLQWKHLUZRUNLQLQQRYDWLYHZD\V&DVSDU)ULHGULFKDWK
FHQWXU\*HUPDQDUWLVWVDLG³:KDWSOHDVHVXVPRVWLQWKHSLFWXUHVRIWKH2OG0DVWHUVLVWKHLU
SLRXVVLPSOLFLW\«+RZHYHUZHVKRXOGQRWVHHNWREHFRPHVLPSOHDVPDQ\KDYHGRQHDQGVR
LPLWDWHWKHLUIDXOWVEXWUDWKHUWREHFRPHSLRXVDQGLPLWDWHWKHLUYLUWXHV´TWGLQ+DUULVRQ,W
ZDVSUHFLVHO\WKLVSLHW\WKDW&ODXGHODLPHGWRHPXODWHDQGRQHPXVWFRQFOXGHWKHQWKDW³&ORWKR
WKXVDSSHDUVDVWKHFUXHOHVWRIUHYHQJHVDV&ODXGHOGHFLGHGO\WXUQV5RGLQ¶VWUDLQLQJDJDLQVWKLP´
/H1RUPDQG5RPDLQDQGVHHNVWRWUDQVIRUPKHUWDOHQWLQRUGHUWRLQWHJUDWHGHHSHU
PHDQLQJ
$VIDUDVWKHUHDFWLRQIURPWKHSXEOLFZDVFRQFHUQHGLWVHHPVWKDWVRPHXQGHUVWRRGWKH
OHYHORIVNLOOLQYROYHGLQFUHDWLQJ&ORWKR\HWPRVWZHUHKRUULILHGDQGRUFRQIXVHGZLWKWKH
VXEMHFWDQGWKHPH7KHH[SRVpIURP/H)LJDURVWDWHGWKDW³/HSXEOLFSRUWDDXWDQWDX[QXHV/D
9DOVHTX¶LOIXWGpUDQJpSDU&ORWKR«´ 0DGHOLQ&ODXGH'HEXVV\ZKRKDGSUHYLRXVO\VR
GHHSO\DGRUHGWKHEOLVVFRQYH\HGLQ/D9DOVH³µUpYpUDLWDYHFXQHQXDQFHG¶HIIURLO¶kSUH&ORWKR¶
FDUOHVWUHVVHVGHODILOHXVHGpERUGHQWGHODFDORWWHFUkQLqUHFRPPHOHVLQWHVWLQVG¶XQHSHUVRQQH
pYLVFpUpHHWODYLROHQFHGHFHWWHYLVLRQHVWDODKDXWHXUGHODGRXOHXUGHO¶DUWLVWH¶ TWGLQ'H
%D\VHU+LVGHVFULSWLRQSRLJQDQWO\GHVFULEHVZKDWPDQ\IHOWEXWFRXOGQRWYHUEDOL]H
/H1RUPDQG5RPDLQH[SODLQHG³7KH>)UHQFKSXEOLF@FRXOGQRWXQGHUVWDQGLWDQG
FRPSODLQHGµ:KDWHYHUWKHWHFKQLFDOPHULWRIDVFXOSWRULQWDFNOLQJVXFKWKHPHVKHGHSULYHV
KLPVHOIRIWKHSXUHVWH[SUHVVLYHUHVRXUFHVRIKLVDUW%\GLQWRILQWHOOHFWXDOLVPKHFHDVHVWREH
7KHSXEOLFZDVDVWKULOOHGZLWK7KH:DOW]DVWKH\ZHUHGLVWXUEHGE\&ORWKR
5HYHUHGWKHILHUFH&ORWKRZLWKDQXDQFHRIWHUURUIRUWKHVSLQVWHU¶VWUHVVHVMXWRXWIURPWKHVNXOOFDSOLNHWKH
LQWHVWLQHVRIDQHYLVFHUDWHGSHUVRQDQGWKHYLROHQFHRIWKLVYLVLRQLVDWWKHKHLJKWRIWKHDUWLVW¶VSDLQ
LQWHOOLJLEOHDQGSODVWLFKHJLYHVKLPVHOIRYHUWRFXULRVLW\LQVWHDGRIVHUYLQJWKHSRSXODULGHDOLQ
WKHQREOHDQGDQFLHQWVHQVHRIWKLVZRUG¶)RU5RGLQKRZHYHUWKLVODQJXDJHZDVLQWHOOLJLEOH´
/H1RUPDQG5RPDLQ+RZHYHUDV,ZLOOH[SODLQODWHUDVWKHWKHPHRIUHGHPSWLRQLV
EURXJKWLQWRWKHOLJKW&ODXGHO¶VSXUSRVHLQVFXOSWLQJZDVQRWWRDHVWKHWLFDOO\SOHDVHVRFLHW\VKH
FUHDWHGKHUDUWDVDPHDQVWRFRPPXQLFDWHKRQHVWO\DQGFRQYH\KHUSUHFLVHYLHZRIUHDOLW\
<HWRQHPXVWUHPHPEHUWKDWVKHGLGQRWOHDYHXQVFDWKHGDIWHUWKHH[HFXWLRQRIWKLVZRUN
'HEXVV\¶VDIRUHPHQWLRQHGZRUGVUHPLQGYLHZHUVRQFHPRUHRI&ORWKR¶VLQHYLWDEOHFRQQHFWLRQ
ZLWKWKHVFXOSWRU&ODXGHOSRUWUD\VWKHZRPDQLQWKHVDPHPDQQHULQZKLFKVKHYLHZVKHURZQ
OLIH²XQGHQLDEO\UXOHGE\DQLQHYLWDEOHIDWH+HDUNHQLQJEDFNWRWKHP\WKRORJLFDORULJLQVRIWKH
FKDUDFWHUZHDUHUHPLQGHGDJDLQWKDW&ORWKRZDVQRWFKRVHQE\FKDQFH*UHHNP\WKRORJ\
WDXJKWWKDW&ORWKRDORQJZLWKWKHRWKHUWZR)DWHVZDVWULFNHGE\EHFRPLQJLQWR[LFDWHG
E\$OFHVWLV7KRPDV7KXVFRQFHLYDEO\&ODXGHOVDZKHUVHOIDVKDYLQJEHHQ³LQWR[LFDWHG´E\
5RGLQDQGHQVQDUHGE\KLVLQIOXHQFH<HWRQHWKLQJLVFHUWDLQVKHVWUXJJOHGIRU\HDUVWRIUHH
KHUVHOIIURPKHUORYHWKRXJKWVDQGFRQQHFWLRQVZLWK³WKHJUHDWPDQ´DQGWKLVFKDOOHQJH
XQGRXEWHGO\FRQWULEXWHGWRKHUKRSHOHVVQHVVDQGPLVHUDEOHVWDWHRIGHFOLQH:LWKHUHOOPDLQWDLQV
WKLVLGHDDVVKHDGGV³,WZDVWRRPXFKIRUWKLVSURXGVROLWDU\VRXOWRVHHWKDWPDQZKRPVKHKDG
QRXULVKHGZLWKKHURZQJHQLXVZDONLQWRJORU\DVVKHZDVEHLQJHQJXOIHGLQWKHGDUN^RI
REOLYLRQ`«´:LWKHUHOO
7KH5XSWXUH/¶kJHP€U
OQHRI&ODXGHO¶VPRVWZHOONQRZQZRUNV/¶kJHP€URU7KH$JHRI0DWXULW\
ILJXQGHQLDEO\HYRNHVWKHWKHPHRIDGHVRODWHIDOO7KLVLGHDRISOXQJLQJLQWRGHVSHUDWLRQLV
SRUWUD\HGLQWKHPXOWLSOHYHUVLRQVRIWKHVFXOSWXUH²DQDOOHJRULFDOWULRRIILJXUHVUHSUHVHQWLQJWKH
DJHVRIPDQ7DKLQFLGHVFULEHVLWDV³WKHVWUXJJOHEHWZHHQWKHIUHVKQHVVRI\RXWKDQGGHDWK´
7DKLQFL7KHPLGGOHPDOHILJXUHVWDQGVXQVWDEO\DVKHLVSXOOHGEHWZHHQWKHVHV\PEROVRI
OLIHDQGIDWDOLW\+HYLVLEO\OHDQVWRZDUGWKH\RXQJHUILJXUH\HWKLVIDFHLVSDLQIXOO\\HW
GHFLGHGO\WXUQHGWRZDUGWKDWRIWKHHOGHUO\IDFH7KRXJKWKLVLVDVWUXJJOHFRQVLVWHQWZLWKD
XQLYHUVDOUHDOLW\DQGUHOHYDQWWRHYHQFRQWHPSRUDU\YLHZHUVLWLVGHSULYHGRILWVDGGLWLRQDO
XQGHUO\LQJPHDQLQJXQOHVVWKHVFXOSWRU¶VSDVWLVEURXJKWLQWRWKHOLJKW
7DKLQFLRIIHUVRQHFRQYLQFLQJLQWHUSUHWDWLRQZKHQVKHVWDWHVWKDWWKLVPLGGOHDJHGQDNHG
PDQWRUQEHWZHHQD\RXQJDQGDQROGHUZRPDQLVXQGRXEWHGO\³DFUXHOVWDWHPHQWRI
DEDQGRQPHQW´6KHDUJXHVEROGO\WKDWWKHVFXOSWXUHFDQEHUHDGDV³&DPLOOH¶V(FFH
+RPR«DUHSUHVHQWDWLRQRI5RGLQOHDYLQJ&DPLOOHRQKHUNQHHVDQGEHJJLQJKLPWRVWD\ZLWK
KHUWRJREDFNWRKLVROGDQGDJLQJPLVWUHVVDQGFRPSDQLRQ5RVH%HXUHW´7DKLQFL7KLV
XVHRIWKH(FFH+RPRPRWLILVDKHDUWUHQGLQJDOOHJRU\DVZHHQYLVLRQWKHPRPHQWLQ&KULVWLDQLW\
ZKHQ-HVXVZDVFUXHOO\FRQGHPQHGDQGUHYLOHG+HZDVVXUURXQGHG\HWDORQHDV+HIDFHGWKH
IRUHERGLQJGD\VWRFRPH,QDVLPLODUPDQQHUWKURXJKWKHVHTXHQWLDOFDVWVRIWKHZRUN&ODXGHO
WRRDSSUHKHQGVKHURPLQRXVIXWXUHDQGOHDYHVOLWWOHURRPIRUKRSHLQWKHIUDPHZRUN
$IDVFLQDWLQJDQGRIWHQXQQRWLFHGIHDWXUHLVVHHQLQWKHFRPSDULVRQRIWKHYDULRXV
YHUVLRQVRI/¶kJHP€UILJ,QWKHILQDOYHUVLRQRIWKHZRUNZKLFKZDVFRPSOHWHGLQ
WKHSRVLWLRQRIWKH\RXQJZRPDQKDVEHHQVLJQLILFDQWO\PRGLILHG³$OOSK\VLFDOFRQWDFWEHWZHHQ
KHUDQGWKHPDQKDVEHHQVXVSHQGHGDQGKHUDUPVDUHRXWVWUHWFKHGLQDQLPSORULQJJHVWXUH´
7DKLQFL³0OOH&ODXGHODVpSDUpODPDLQGHVRQSULQFLSDOSHUVRQQDJHGHFHOOHGHODILJXUHGH
OD-HXQHVVHSRXUPLHX[HQH[SULPHUO¶pORLJQHPHQW(OOHDGHSOXVHQYHORSSpODILJXUHGHO¶$JH
GHGUDSHULHVYRODQWHVTXLDFFXVHQWODUDSLGLWpGHVDPDUFKH«´ 3LQJHRW
0DGHPRLVHOOH&ODXGHOVHSDUDWHGWKHKDQGRIKHUPDLQFKDUDFWHUIURPWKDWRIWKHILJXUHRI<RXWKWREHWWHUH[SUHVV
WKHGLVWDQFHEHWZHHQWKHP)XUWKHUPRUHVKHHQYHORSHGWKHILJXUHUHSUHVHQWLQJ$JHLQIO\LQJGUDSHULHVZKLFK
DFFXVHWKHUDSLGLW\RIKHUGHSDUWXUH
$VRQHEHJLQVWRH[DPLQHWKH\RXWKIXOILJXUHLQERWKYHUVLRQVRQHZLOOQRWLFHWKDWKHU
KHDGVWUDLQVXSZDUGZLWKDIXUURZHGEURZH\HVZLGHQHGLQDQDWWHPSWWRVHL]HWKHJD]HRIWKH
FHQWUDOPDQ,QWKHHDUOLHUSODVWHUVKHKDVDVWURQJJUDVSRQKLVDUPDQGVKRXOGHUEXWPRUH
LPSRUWDQWWKDQWKHIRUFHRIKHUSK\VLFDOJUDVSWKHSRZHURIKHUSURSRUWLRQLQUHODWLRQWRWKHWZR
RWKHUILJXUHVEHJVWREHH[DPLQHG,QWKHHDUOLHUYHUVLRQWKH\RXWKIXOKHDGZLWKLWVSOHDGLQJIDFH
LVQRWKDOIRIDQDUP¶VOHQJWKDZD\IURPWKHPDQ¶VKHDUW<HWLQWKHODWWHUYHUVLRQVKHLV
SURSRUWLRQDWHO\PXFKVPDOOHUDQGRQDVLJQLILFDQWO\ORZHUSODQHWKDQWKHWZRVHHPLQJO\IORDWLQJ
RWKHUV7KLVFDQFRPSHOOLQJO\EHUHDGDVDVLJQWKDW&ODXGHOLQKHUSDUDOOHOSULYDWHOLIHKDVORVW
FRQILGHQFHLQKHULQIOXHQFH
1H[WDVZHPRYHWRH[DPLQHWKHILJXUHUHSUHVHQWLQJDJHRQWKHOHIWLWLVLPSHUDWLYHWR
QRWLFHWKHYDULDQFHLQKHUJODQFHEHWZHHQWKHWZRUHQGLWLRQV,QWKHILUVWVKHJODUHVGHILDQWO\DW
<RXWKDQGVHHPVWRWDXQWKHUZKLOHDVDSUHFDXWLRQVKHVWLOOHQFLUFOHVKHUDUPDURXQGKHUWDUJHW
+RZHYHULQWKHODWHUUHQGLWLRQVKHJXLGHVWKHPDQJHQWO\DZD\ZLWKDKDQGOLJKWO\UHVWHGRQKLV
DUPZKLFKVKRZVWKDWKHULQIOXHQFHFRQVLVWVRIPRUHWKDQSK\VLFDOIRUFH$GGLWLRQDOO\KHUJD]H
LVQRZIRFXVHGRQKHUSUL]HVKHDSSHDUVVHFXUHLQKHUSHUVXDVLYHSRZHUDQGKDVDYLVLEOHVPLUN
RIVDWLVIDFWLRQ$JHQRZFODLPVWKHKLJKHVWSRLQWRIWKHVFHQHDQGWKHGUDSHU\&ODXGHODGGHG
LQVLQXDWHVEORZLQJZLQJVUHDG\WRWDNHIOLJKW-XVWDVLQWUDGLWLRQDO&KULVWLDQV\PEROLVPZKHUH
WKHKLJKO\IDYRUHGDUHSODFHGRQWKHULJKWKDQGVLGHRI*RG&ODXGHOGHSLFWHG5RVHWKHYLFWRU
WULXPSKDQWO\RFFXS\LQJ5RGLQ¶VULJKWVLGH$JDLQH[DPLQLQJWKHVHUHQGLWLRQVZLWKWKHWZR
DOOHJRULFDOPHDQLQJVLQPLQGSURYLGHVDPXFKGHHSHUUHDFWLRQWRWKLVWKHPHRIVXFFXPELQJWRWKH
IDOO
)LQDOO\DVZHPRYHWRWKHIRFXVRIWKHSLHFHWKHWRUQPDQLWLVDJDLQYLWDOWRFRPSDUHKLV
UHSUHVHQWDWLRQLQWKHHDUOLHUDQGODWHUYHUVLRQV)LUVWFRQFHUQLQJKLVVWDQFHLQWKHEHJLQQLQJKH
LVQHDUO\IDOOLQJWRZDUG\RXWKZLWKKLVNQHHVEHQWDQGKLVKHDGWKURZQXSZDUG+RZHYHULQWKH
ODWHUUHQGLWLRQQRWRQO\KDVKHOHDQHGWRZDUG$JHEXWKLVKHDGLVWLOWHGGRZQZDUGLQILUPHU
UHVROYHDQGKLVOLPEVDUHPRUHULJLGDVKHVWHSVDZD\3LQJHRWVXSSRUWVWKLVVDPHLGHDDVVKH
DWWHVWV³/DSUHPLqUHYHUVLRQ«HWODVHFRQGHUDFRQWHQWODOXWWHHWODGpIDLWH/¶KRPPHKpVLWH
G¶DERUG«>HW@O¶D[HGHFHWWHS\UDPLGHRVFLOOHYHUVODGURLWH3XLV«WRXWEDVFXOHYHUVODJDXFKH´ 2QHPD\LQLWLDOO\ZRQGHUZK\&ODXGHOHQJDJHVVXFKLPPHQVHLQFRQVLVWHQF\LQWKHVL]H
EDODQFHDQGSURSRUWLRQRIWKHILJXUHVLQKHUZRUNV+RZHYHUDVHYLGHQWLQKHUSLHFHVVXFKDV
7KH:DYHILJ&ODXGHORIWHQVRXJKWWRFUHDWHYLVXDOLQVWDELOLWLHVDQGLQHTXDOLWLHV
FRQWUDU\WRZKDWWKHSXEOLFRIWHQH[SHFWHGRIVFXOSWXUH,QWKLVLQVWDQFHVSHFLILFDOO\WKURXJKKHU
VNLOOIXOFUHDWLRQ³«HOOHIRUoDLWOHVSHFWDWHXUjUHFRPSRVHUHQHVSULWODSKDVHVXLYDQWH
LQpOXFWDEOH´ 3LQJHRW$QGDVZDVHTXDOO\WUXHLQWKH)DOORIPDQWKHUHLVQRWXUQLQJ
EDFN
7KRXJKWKHSXEOLFVDZ/¶kJHP€UDVDQDOOHJRU\³«TXLUHoXWGHQRPEUHX[WLWUHVHWVH
SUrWDjEHDXFRXSG¶LQWHUSUpWDWLRQV«SRXU3DXO&ODXGHOO¶DOOpJRULHpWDLWWUDQVSDUHQWH´ 3LQJHRW
7DKLQFLLQIRUPVXVWKDW3DXO&ODXGHOLPPHGLDWHO\UHFRJQL]HGKLVVLVWHULQWKH\RXQJ
ZRPDQ¶VLPDJHDQGZDVVDGGHQHGE\WKLV³FOHDUVWDWHPHQWDERXWKHUVHOILPDJH´TWGLQ7DKLQFL
,QKLVDUWLFOH³0\6LVWHU&DPLOOH´ZULWWHQLQKHREVHUYHV
%XWQRWKLVQXGH\RXQJJLUOLVP\VLVWHU0\VLVWHU&DPLOOH«KXPLOLDWHGNQHHOLQJWKLV
PDJQLILFHQWWKLVSURXGZRPDQWKDWLVKRZVKHUHSUHVHQWHGKHUVHOI,PSORULQJ
KXPLOLDWHGNQHHOLQJDQGQXGH(YHU\WKLQJLVRYHU7KLVLVZKDWVKHOHIWXVIRUHYHUWR
7KHILUVWYHUVLRQ«DQGWKHVHFRQGUHFRXQWWKHVWUXJJOHDQGWKHGHIHDW)LUVWWKHPDQKHVLWDWHV«DQGWKHD[LVRI
WKLVS\UDPLGRVFLOODWHVWRZDUGWKHULJKW7KHQ«DOOWLSVWRZDUGWKHOHIW
6KHIRUFHGWKHYLHZHUWRUHFRQVWUXFWLQKLVPLQGWKHQH[WLQHVFDSDEOHSKDVH
«ZKLFKUHFHLYHGQXPHURXVKHDGOLQHVDQGOHQWLWVHOIWRPDQ\LQWHUSUHWDWLRQV«IRU3DXO&ODXGHOWKHDOOHJRU\ZDV
WUDQVSDUHQW
FRQWHPSODWH$QGHYHQEHIRUH\RXUH\HV\RXFDQVHHKHUVRXO,WLVDWWKHVDPHWLPHWKH
VRXOWKHJHQLXVWKHUHDVRQWKHEHDXW\OLIH«TWGLQ7DKLQFL
+RZHYHU3DXO¶VKHDUWKDGQRWDOZD\VEHHQVRV\PSDWKHWLFLQWKHEHJLQQLQJLWZDV
HQWLUHO\KDUGHQHGWRWKHSLHFH+LVIROORZLQJGLVFULPLQDWRU\VWDWHPHQWLQIRUPV\HWDWWKHVDPH
WLPHLQFLWHVFRPSDVVLRQIRUWKHXQMXVWDQGLQWROHUDQWPDQQHULQZKLFK&DPLOOHZDVUHJDUGHG
/DVpSDUDWLRQpWDLWLQpYLWDEOHHWOHPRPHQWKkWpGHODSDUWGHPDV°XUSDUXQHYLROHQFH
HIIUR\DEOHGHFDUDFWqUH«QHWDUGDSDVjDUULYHU&DPLOOHQHSRXYDLWDVVXUHUDXJUDQG
KRPPHODSDUIDLWHVpFXULWpG¶KDELWXGHVHWG¶DPRXUSURSUHTX¶LOWURXYDLWDXSUqVG¶XQH
YLHLOOHPDvWUHVVH>5RVH@(WG¶DXWUHSDUWGHX[JpQLHVG¶pJDOHSXLVVDQFHHWGHGLIIpUHQW
LGpDOQ¶DXUDLHQWVXORQJWHPSVSDUWDJHUOHPrPHDWHOLHUHWODPrPHFOLHQWqOH/HGLYRUFH
pWDLWSRXUO¶KRPPHXQHQpFHVVLWpLOIXWSRXUPDV°XUODFDWDVWURSKHWRWDOHSURIRQGH
GpILQLWLYH/HPpWLHUGHVFXOSWHXUHVWSRXUXQKRPPHXQHHVSqFHGHGpILSHUSpWXHODX
ERQVHQVLOHVWSRXUXQHIHPPHLVROpHHWSRXUXQHIHPPHDYHFOHWHPSpUDPHQWGHPD
V°XUXQHSXUHLPSRVVLELOLWp(OOHDYDLWWRXWPLVpVXU5RGLQHOOHSHUGLWWRXWDYHFOXL/H
EHDXYDLVVHDXTXHOTXHWHPSVEDOORWpVXUG¶DPqUHVYDJXHVV¶HQJORXWLWFRUSVHWELHQV 3LQJHRW
&ODXGHO¶VEROGQHVVZKLFKWRGD\ZRXOGEHVHHQDVLQVSLULQJZDVDWWKDWWLPHFRQVLGHUHG
IULJKWHQLQJ7KH&ODXGHOVIRXQGLWXSVHWWLQJWKDWWKHLUGDXJKWHUSHUVLVWHGWRFRPPLWKHUVHOIWRD
GRPDLQZKLFKZDVSK\VLFDOO\GHPDQGLQJXQFOHDQEXWPRVWLPSRUWDQWO\HQWLUHO\LQDSSURSULDWH
IRUDZRPDQRI)UHQFKVRFLHW\7KLVWKXVSURYRNHVWKHTXHVWLRQLIWKHLUVRQKDGSHUVHYHUHGLQ
7KHVHSDUDWLRQZDVLQHYLWDEOHDQGWKHPRPHQWKDVWHQHGRQP\VLVWHU¶VSDUWE\KHUGUHDGIXOO\ILHUFH
WHPSHUDPHQWGLGQRWWDNHORQJWRFRPH&DPLOOHFRXOGQRWDVVXUHWKHJUHDWPDQWKHSHUIHFWVDIHKDELWVDQGVHOI
HVWHHPWKDWKHIRXQGLQKLVROGPLVWUHVV5RVH$QGPRUHRYHUWZRJHQLXVHVZLWKHTXDOSRZHUDQGGLIIHUHQWLGHDOV
ZRXOGQRWKDYHNQRZQKRZWRVKDUHWKHVDPHVWXGLRDQGFOLHQWHOHIRUORQJ)RUWKHPDQWKHGLYRUFHZDVD
QHFHVVLW\IRUP\VLVWHULWZDVDWRWDOFDWDVWURSKHGHHSDQGGHILQLQJ7KHSURIHVVLRQRIDVFXOSWRULVIRUDPDQD
NLQGRISHUSHWXDOFKDOOHQJHWRUHDVRQIRUDQLVRODWHGZRPDQZLWKP\VLVWHU¶VWHPSHUDPHQWLWLVDSXUHLPSRVVLELOLW\
6KHKDGSODFHGDOOKHUKRSHVLQ5RGLQDQGVKHORVWHYHU\WKLQJZLWKKLP7KHEHDXWLIXOYHVVHOZKRWRVVHGIRU
DZKLOHRQELWWHUZDYHVZDVHYHQWXDOO\HQJXOIHGZLWKRXWDWUDFH
DUWZLWKWKHVDPHGHWHUPLQDWLRQZRXOGLWQRWKDYHEHHQDVRXUFHRISULGHIRUWKHIDPLO\"3DXO¶V
TXRWHFHUWDLQO\LPSOLHVWKDWIRUDPDQVFXOSWLQJZDVDFKDUDFWHUEXLOGLQJFKDOOHQJHEXWIRUD
ZRPDQLWVKRXOGQRWHYHQKDYHEHHQDWWHPSWHG+RZHYHUGHVSLWHSUHMXGLFHDODFNRIIDPLOLDO
DQGVRFLDODFFHSWDQFHDQGOLWWOHKHOS&ODXGHOFRQWLQXHGWRVWUXJJOH6KHZRXOGQRWDOORZWKLVWR
EHKHUGRZQIDOO)XUWKHURQDVZHGHOYHLQWRKRZKHUVFXOSWXUHLVUHGHPSWLYHLQQDWXUHZHZLOO
H[DPLQHKRZVSHFLILFDOO\VKHPDGHWKHVHVWULGHVERWKIRUKHUVHOIDQGIRUZRPHQRIWKHODWHWK
DQGHDUO\WKFHQWXU\
6WHSSLQJEDFNWRWKHVWDWXHLWVHOIWKHUHDUHWKRVHZKRLQWHUSUHW&ODXGHO¶VUDJHDVVKH
FUHDWHGWKHVROLGLILHGPRPHQWRI/¶kJHP€UDVDFUXHOLQKXPDQDFWDVWKHILJXUHGHOLYHUVKHU
ORYHUWRWKHKDQGVRIGHDWK+RZHYHUGHVSLWHKLVIUXVWUDWLRQZLWKKHUEROGQHVVLQWKHSLHFHDQG
KLVGLVWDVWHIRUKHUGHWHUPLQDWLRQLQDILHOGWKDWZDVQRWVXLWDEOHIRUIHPDOHV3DXOGLGQRWVHHLW
WKLVZD\KHVDZKLVVLVWHUH[FOXVLYHO\DV³5RGLQ¶VYLFWLP«WRUQEHWZHHQGHVLUHDQGGHVSDLU´
7DKLQFL0RUHRYHUWKHIRUPDOHOHPHQWVRIWKHVFXOSWXUHWHQGWRVLGHZLWK3DXO
$GGLWLRQDOO\H[DPLQLQJ/¶kJHP€UZLWKDV\PEROLVWSHUVSHFWLYHUHPLQGVXV\HWDJDLQRI
WKHFRPSOH[LW\RIWKHSLHFH+HQULGH5pJQLHUH[SODLQHGWKHSRHWLFQDWXUHRIV\PEROLVWZRUNVE\
VD\LQJWKDWWKH\VWDUWZLWKDZRUGQH[WZRUNWKURXJKLPDJHVDQGPHWDSKRUVWKHQJRRQWR
LQFOXGHHPEOHPVDQGDOOHJRU\,QWKHHQGWKHPRVWFRPSOHWHILJXUDWLRQRIDQ,GHDLVSUHVHQWHG
0LWFKHOO,QWKHFDVHRI/¶kJHP€UWKH,GHD&ODXGHODLPHGWRLOOXVWUDWHZDV'HVWLQ\,WLV
WKLV³H[SUHVVLYHFRQILJXUDWLRQRI,GHDV´WKDWDUWLVWVWRGD\VWLOOKRSHWRDFKLHYH
)LQDOO\7DKLQFL¶VFORVLQJVWDWHPHQWFRQYH\VWKHPRVWFULWLFDOPRPHQWRIWKLVVFXOSWXUH¶V
IDOOHQVWDWHDVVKHFODLPVWKDWRYHUDOO&ODXGHOWULHVWR³H[WLQJXLVKKHURZQOLIHDQGKDSSLQHVVDQG
FRPPLWVVXLFLGHLQUHSUHVHQWDWLRQDOIRUP´7DKLQFL&ODXGHO¶VXOWLPDWHYHUVLRQRI/¶kJHP€U
XQGHQLDEO\VXSSRUWVWKLVFRQMHFWXUHVHHLQJDVWKHILQDOL]HGIHPDOHILJXUHLVVHYHUHGIURPLWV
IRXQGDWLRQDOFRUHDQGFRQVWDQWO\VHHPVWR³UHDFKRXWDQGJUDVSDWDQXQDWWDLQDEOHKRSHZKLFK
XQIRUWXQDWHO\VKHLVQHYHUDEOHWRDWWDLQ´7DKLQFL
$VDILQDOSRLQWWKRXJKPXFKPRUHFRXOGEHVDLGRI&ODXGHO¶VVXIIHULQJVWKHPRVW
HVVHQWLDOOHVVRQVVKHWDXJKWWKURXJKKHUDUWFDQEHZLWQHVVHGLQWKRVHVFXOSWXUHVFUHDWHGDIWHUKHU
UXSWXUHZLWK5RGLQ7KHDQHFGRWH)ULVFKDQG6KLSOH\UHFRUGHGKHOSVXVEHWWHUXQGHUVWDQGWKH
QHFHVVLW\RIWKLVEUHDNRQKHUOLIHDVDQLQGLYLGXDODUWLVW7RVHWWKHVFHQH5RGLQDQG&ODXGHOKDG
JRQHWR&DQQHVWRYLVLWWKH5HQRLUVZKRVHKRXVHFRQWDLQHGDQDYLDU\
$V5RGLQDQG&DPLOOHVDWQHDUWKLV>DYLDU\@RQHFKHHU\DIWHUQRRQWKHVRQJVRIWKHELUGV
RXWVLGHPDGHWRRVDGIRU&DPLOOHWKHVRQJVRIWKHELUGVZLWKLQ5RGLQKDGWRJUDVSKHU
DUPDQGSXOOKHUDZD\RUVKH¶GKDYHIUHHGWKHVRQJVWHUV/LIHDWEHVWLVWRRQHDUO\D
SULVRQIRUDOOKHUMR\RXVWLPHV&DPLOOH¶VORYHZDVEHKLQGEDUV&DUDQID
&DUDQIDDGGVWKDWLWZDVQRWRQO\WKHTXHVWLRQRI&ODXGHO¶VORYHEHLQJSODFHGEHKLQG
VRFLDOEDUVE\5RGLQLWZDVDOVRDTXHVWLRQRI&ODXGHO¶VDUWEHLQJWLHGGRZQ³«)RU&ODXGHOWKH
ELUGVPD\KDYHVLPSO\EHHQ«WKHV\PERORIKHUORQJLQJWRIO\DVKLJKDVWKHVN\WRFRPPXQH
ZLWKWKHXQLYHUVHLIRQO\VKHFRXOGIUHHKHUVHOIDQGKHUDUWIURPWKHFRQVWUDLQWVRI5RGLQ«6KH
LQVWLQFWLYHO\NQHZWKDWKHUOLIHDQGKHUDUWEHORQJHGWRDGLIIHUHQWZRUOGWRDIUHHUKLJKHUDQG
PRUHVLOHQWZRUOGWKDQWKHZRUOGRI5RGLQ«´7KLVSHULRGZKHQ&ODXGHOILQDOO\EURNHIUHH
IURPKHUPHWDSKRULFDOFDJHVDQGVSUHDGKHUZLQJVZDVDQDFWWKDW,LQWHQGWREHWKHPRVW
VLJQLILFDQWIRFXVRIWKLVWKHVLV,WKDVEHHQVXIILFLHQWO\SURYHQWKDWKHUDUW³RYHUIORZVZLWK
LPDJHVRIKHUIDPLO\RISXUHRULGHDOORYHRIMR\RIFRQWHPSODWLRQRIFKLOGKRRG´DQGRI
FRQFHUQV&DUDQID<HW,DIILUPWKDWWKHUHLVVRPHWKLQJGHHSHUWRKHUVFXOSWXUHVDYHLOHG
VSLULWXDOO\HQFRPSDVVLQJVSHFLILFDOO\WKHWKHPHRIUHGHPSWLRQZLWKLQWKHVWRQH
&+$37(56<0%2/,60
&ODXGHODV3DUWRIWKH6\PEROLVW0RYHPHQW
$VRQHEHJLQVDQH[DPLQDWLRQRIWKHWKHPHRIUHGHPSWLRQFKH]&DPLOOH&ODXGHORQH
PXVWILUVWKDYHDILUPEDFNJURXQGRIWKHDUWLVWLFFLUFXPVWDQFHVSUHVHQWLQKHUHUD)LUVWLQWKH
ODWHWKFHQWXU\DPRYHPHQWFDPHDERXWLQOLWHUDWXUHPXVLFDQGDUWNQRZQDVWKH6\PEROLVW
PRYHPHQW6\PEROLVPZDVDUHDFWLRQDJDLQVWUHDOLVPDQGVXSSRUWHGVSLULWXDOLW\LPDJLQDWLRQ
DQGLGHDOV7KHSXUSRVHRIWKHV\PEROLFLPDJHU\ZDVWRVXJJHVWWKHVWDWHRIWKHDUWLVW¶VVRXO
'XULQJWKHSDLQIXOPRPHQWVRI&ODXGHODQG5RGLQ¶VUHODWLRQVKLSLWLVLQWHUHVWLQJWRQRWLFHWKDW
ZKLOH5RGLQ&ODXGHO¶VVXSSRVHGPDVWHUZULWHVRIKLVIHHOLQJV&DPLOOHXVHVWKRVHVDPHIHHOLQJV
DVDFDWDO\VWWRFUHDWHDPDVWHUSLHFH7KHIROORZLQJH[FHUSWIURP/H)LJDURSURYLGHVDFOHDU
LPDJH³(QO¶DQQpHSHQGDQWTXH5RGLQV¶pSDQFKHGDQVVHVOHWWUHVHQODUPR\DQWVXUOHXU
GLIILFLOHUHODWLRQHOOHWUDGXLWVRQSURSUHGUDPHGDQV/¶kJHP€U«7UDQVFHQGDQWVDSURSUH
H[SpULHQFH«´ +HDUNHQLQJEDFNWRWKHURRWVRIWKHPRYHPHQWLQ-HDQ0RUpDVZURWH/H
6\PEROLVPHZKLFKLVWRGD\NQRZQDV7KH6\PEROLVW0DQLIHVWR,QLWKHDUJXHGWKDW
³«V\PEROLVPZDVKRVWLOHWRSODLQPHDQLQJVGHFODPDWLRQVIDOVHVHQWLPHQWDOLW\DQGPDWWHURI
IDFWGHVFULSWLRQ´DQGWKDWLWVJRDOLQVWHDGZDVWR³FORWKHWKH,GHDOLQDSHUFHSWLEOHIRUP´7KH$UW
7ULEXQH7KHV\PEROLVWVZHUHDUWLVWVZKRHPSKDVL]HGGUHDPVDQGGHVLUHVDQGRIWHQXVHG
P\WKRORJLFDOLPDJHU\$WWLPHVWKHV\PEROVWKH\LQFRUSRUDWHLQYROYHLQWHQVHO\SHUVRQDO
SULYDWHREVFXUHDQGDPELJXRXVUHIHUHQFHV
&RQFHUQLQJ&ODXGHO¶VDOOHJHGDVVRFLDWLRQZLWKWKH6\PEROLVWPRYHPHQWWKHUHDUHWZR
RSSRVLQJ\HWFRPSHOOLQJDUJXPHQWV-XPHDX/DIRQGRI7KH$UW7ULEXQHLQVLVWVWKDWZLWK
,QWKH\HDUZKLOH5RGLQSRXUVRXWKLVVRXOLQOHWWHUVZHHSLQJDERXWWKHLUGLIILFXOWUHODWLRQVKLS&DPLOOH
WUDQVODWHVKHUGUDPDWLFPRPHQWLQWR7KH$JHRI0DWXULW\«7UDQVFHQGLQJKHURZQH[SHULHQFH
6DNRXQWDOD&ODXGHOWDNHVRQWKHV\PEROLVWV¶WKHPHRIWKHTXHVWLRQRIGHVWLQ\+HVWDWHVWKDW
EHFDXVHKHUZRUNLVPRUHWKDQVLPSOHDXWRELRJUDSKLFDOUHIOHFWLRQDQGLVPDUNHGE\D
PHWDSK\VLFDOVHDUFKLWFRQVLVWHQWO\FRQILUPVD6\PEROLVWRULHQWDWLRQ+HDOVRDGGVWKDW³WKH
VLQXRXVWXUQLQJVRI7KH:DOW]>DUH@REYLRXVO\PHDQWWREHFRPSDUHGPRUHWRD6\PEROLVWYLVLRQ
WKDQWRDQ\VLPLODUZRUNIURP$UW1RXYHDX´2QHHOHPHQWZKLFKVXSSRUWVWKLVLV&ODXGHO¶V
FORVHIULHQGVKLSZLWK&ODXGH'HEXVV\+HDGPLWWHGWREHLQJVWURQJO\DIIHFWHGE\WKH6\PEROLVW
DHVWKHWLFLQKLVFRPSRVLQJ7KXVWDNLQJLQWRDFFRXQW&ODXGHO¶VDGRUDWLRQRIKLVPXVLFLWLV
SRVVLEOHWKDWVKHZDVLQIDFWLQIOXHQFHGDQGDLPHGWRLQFRUSRUDWHWKLVVDPHWKHPHDVVKHFUHDWHG
:KHQFRPSDULQJ&ODXGHO¶VVFXOSWXUHWR5RGLQ¶VZKHUHKLVSLHFHVDUHLQGHHGP\VWHULRXV
KHUVDUHIXOORIVXJJHVWLRQPXVLFDOLW\DQG³DLPWRJREH\RQGµVXSHUIOXRXVLQH[SUHVVLYHIRUPV
OLQHVRUFRORUV¶´&DUDQID7KLVQRWLRQRIDV5RGLQSXWLW³DZDNHQ>LQJ@WKHLPDJLQDWLRQRI
WKHVSHFWDWRUZLWKRXWH[WUDQHRXVDVVLVWDQFH´ZDVFHQWUDOWR6\PEROLVWDHVWKHWLFV3DUWLFLSDQWVRI
WKHPRYHPHQWLQWHQGHGWKHHPRWLRQVRIWKHVSHFWDWRUVWR³VRDUGLUHFWO\DQGIUHHO\WRZDUGWKH
VXSSRVHGHWHUQDOHVVHQFHWKHP\VWHU\RIWKLQJV>DQG@WKHLUVSLULWXDOVLJQLILFDQFH«´&DUDQID
5RGLQFHUWDLQO\LQWHJUDWHGWKLVLGHDDVKHPHQWRUHG&ODXGHO)RUKLPP\VWHU\ZDVWKH
NH\,WZDVWKH³VSLULWXDOVLJQLILFDQFHRIWKLQJVWKHLUHVVHQWLDOWUXWK´LQ5RGLQ¶VRZQZRUGVWKH
P\VWHU\LV³OLNHWKHDWPRVSKHUHLQZKLFKYHU\EHDXWLIXOZRUNVRIDUWEDWKH´TWGLQ&DUDQID
+HEHOLHYHGWKDWLQDUWDEVROXWHO\HYHU\WKLQJLV³UHVROYHG´LQWRWKRXJKWDQGVSLULWKH
VWDWHG³7KHIRUPVPXVWEHDUUDQJHGLQVXFKDZD\DVWRDFFHQWXDWHOLQHVWKDWEHVWH[SUHVVWKH
VSLULWXDOVWDWHWKDW,LQWHUSUHWWKH\PXVW³SHUPLWWKHDUWLVWWROLVWHQWRWKHVSLULWDQVZHULQJKLVRZQ
VSLULW´TWGLQ&DUDQID&DUDQIDDGGVWKDWLQWKLVZD\HYHU\DUWLVWZKRKDVWKLVJLIW
H[SUHVVHVDUHOLJLRXVHPRWLRQ&ODXGHODVKLVVWXGHQWDSSUHQWLFHDQGDGRULQJGLVFLSOHFHUWDLQO\
ZRXOGKDYHDSSUHFLDWHGWKLVDVSHFWRI6\PEROLVPDQGLQFRUSRUDWHGLWLQWRKHUWUDQVFHQGHQWDO
PHWKRGRIVFXOSWLQJ
)LQDOO\WKHHQF\FORSHGLDVWDWHVWKDW³7KHWHUPµV\PEROLVP¶LVGHULYHGIURPWKHZRUG
µV\PERO¶ZKLFKGHULYHVIURPWKH/DWLQV\PEROXPDV\PERORIIDLWKDQGV\PEROXVDVLJQRI
UHFRJQLWLRQ´7KXVLIRQHFRQVLGHUVV\PEROLVWWHFKQLTXHVDQGIHDWXUHVWRWUXO\EHVLJQVRI
UHFRJQLWLRQUHODWHGWRWKHFUHDWRU¶VH[LVWHQFH,GREHOLHYHWKDW&ODXGHOZDVVHQVLWLYHO\DZDUHRI
KHUYDULRXVFLUFXPVWDQFHVDQGUHSUHVHQWHGWKHPDVFDQGLGO\DVVKHZDVDEOH
&RQYHUVHO\WKRXJK&ODXGHODV&DUDQIDVWDWHVLW³6\PEROLFDOO\FDSWXUHVWKHQDUUDWLYH
>DQG@SRHWU\RIKHUOLIH´,EHOLHYHWKDWVKHZDVQRWVROHO\D6\PEROLVWKHUSXUSRVHHQWDLOHG
PXFKPRUH7KH6\PEROLVW0DQLIHVWRFKDUDFWHUL]HV6\PEROLVPDVDVW\OHZKRVH³JRDOZDVQRW
DWWDLQLQJWKHLGHDOEXWZKRVHVROHSXUSRVHZDVWRH[SUHVVLWVHOIIRUWKHVDNHRIEHLQJH[SUHVVHG´
7KLVLVFHUWDLQO\QRWWUXHRI&ODXGHO¶VSLHFHVRQWKHZKROH4XLWHRIWHQIRUKHUVFXOSWLQJZDVD
KHDOLQJSURFHVVDVSLULWXDOHQGHDYRULQZKLFKVKHVRXJKWPRUHWKDQDQ\WKLQJIRUUHGHPSWLRQ
5DWKHUWKDQSRUWUD\LQJKHULG\OOLFXWRSLDDVPDQ\V\PEROLVWVGLGVKHFRQIURQWHGUHDOLW\ZLWK
EUXWDOKRQHVW\LQRUGHUWRKHOSKHUVHOIFRPHWRWHUPVZLWKKHUVLWXDWLRQDQGUHVROYHWKHDQJHU
FRQIXVLRQRUIHHOLQJVZLWKLQKHU
/LNH5RGLQ&ODXGHOGLGQRWVWUXJJOHILQGLQJV\PEROVWKDWLQVSLUHGKHUSHUVRQDOO\:H
VHHSURRIRIWKLVLQ&ORWKRDQGWKHDOOHJRULHVRI/¶kJHP€UDQG3HUVHXVDQGWKH*RUJRQ%XW
XQOLNH5RGLQ&DUDQIDVWDWHV³&ODXGHOGRHVQRWHPSW\WKHV\PEROVRIWKHLUREMHFWLYHDQGUDWLRQDO
PHDQLQJKHUZRUNVµDUHWKHIUXLWVRIKHUUHVHDUFKDQGFDUHIXOWKRXJKW¶ZKLOHWKHZRUNVRI5RGLQ
µDUHWKHSUREHVLQWRKLVSUROLILFXQFRQVFLRXV¶´,WLVSUHFLVHO\WKLVGXDOLW\EHWZHHQWKH
HPEOHPDWLFDQGWKHDXWKHQWLFWKDWFUHDWHVWKHJUDYLW\RI&ODXGHO¶VPDVWHUSLHFHV&DUDQIDODWHU
DGGVWKDWFKH]&ODXGHO³5HDOLW\LVQHYHUEHWUD\HGRUGLPLQLVKHGE\KHUIDLWKIXOKDQGVDQGWKH
ZKROHLVQRWRQO\DUHDOSUHVHQFHEXWLVDOVRSUHVHUYHGE\WKHKDUPRQ\DQGLQWHUQDOWHQVLRQRILWV
SDUWV´6KHVRXJKWSURIXQGLW\DQGSHUIHFWLRQDQGVRODFHZLWKHDFKSLHFH
$JDLQZDVLWIRUIDPHWKDWVKHVWURYHLQVXFKDGHWHUPLQHGPDQQHU"&ODXGHODQVZHUHG
WKLVZLWKDUHVRXQGLQJµQR¶LQDVVKHVWUXJJOHGWREUHDNIUHHIURPKHUPDVWHU¶VJUDVS6KH
VWDWHG³-HWUDYDLOOHPDLQWHQDQWSRXUPRL´ 0DGHOLQ/H)LJDURLQLWVUHYLHZRIKHUOLIHDQG
ZRUNVDGGHG³$ORUVTXHOHXUVYLHVVHVpSDUHQWOHXUFRQFHSWLRQDUWLVWLTXHOHVpORLJQHSOXVHQFRUH
O¶XQGHO¶DXWUH5RGLQV¶DWWDFKHjODGLIIXVLRQFRPPHUFLDOHHWFXOWXUHOOHGHVRQWUDYDLOQRWLRQj
ODTXHOOH&DPLOOH&ODXGHOQHSHQVHJXqUH´ 0DGHOLQ<HWDJDLQKHULQWHQWLRQVZHUHURRWHG
LQDKLJKHUSXUSRVH
&RQWLQXLQJGRZQWKLVWUDQVFHQGHQWDOSDWKDWILUVWDWWHPSWWRH[DPLQHWKHVSLULWXDOFKH]
&DPLOOH&ODXGHORQHPD\PRFNWKHHQGHDYRUVHHLQJDVKHUIDPLO\VSHFLILFDOO\KHUPRWKHU
UDUHO\VKRZHGVLJQVRI&KULVWLDQLW\RUORYH)RUSURRIRQHQHHGRQO\UHDGRIWKHZD\WKH\H[LOHG
DQGQHJOHFWHG&ODXGHOWKURXJKRXWWKHODVWWKLUW\\HDUVRIKHUOLIH$VHDUO\DV³ERWKKHU
PRWKHUDQGVLVWHUKDGVWRSSHGVHHLQJKHURQFHWKH\UHDOL]HGWKHH[WHQWRIKHUGHSDUWXUHIURP
WUDGLWLRQDOYDOXHV,QWKHLUH\HVKHUWKLUVWIRUIUHHGRPKDGVWDLQHGWKHIDPLO\DQGWKH\QRORQJHU
ZDQWHGWRKDYHDQ\WKLQJWRGRZLWKKHU´$\UDO&ODXVH)XUWKHUPRUHWKH&ODXGHOVZHUH
QRWLQLWLDOO\SOHDVHGDWWKHLUVRQ3DXO&ODXGHO¶VGHFLVLRQWRFRPPLWKLPVHOIWRGHYRXW&DWKROLFLVP
LQKLV\RXWKHYHQWKRXJKWKH\WKHPVHOYHVZHUH³&DWKROLF´E\WUDGLWLRQ+RZHYHUGHVSLWH
&ODXGHO¶VSUHGLVSRVLWLRQWRUHMHFW&KULVWLDQLW\EHFDXVHRILWVK\SRFULWHVVKHGLGHQJDJHD³YHLOHG
VSLULWXDOLW\´ZLWKLQKHUZRUNV&RXOGVKHEHFRQVLGHUHGDIROORZHURI1HR&DWKROLFLVPEHIRUHLWV
WLPH"
,QRZZRUNIRUP\VHOI
$VWKHLUOLYHVVHSDUDWHWKHLUDUWLVWLFFRQFHSWLRQVIXUWKHUWKHPHYHQPRUHIURPRQHDQRWKHU5RGLQLVDWWDFKHGWR
WKHFRPPHUFLDODQGFXOWXUDOFLUFXODWLRQRIKLVZRUNDQRWLRQWRZKLFK&DPLOOH&ODXGHOKDUGO\JLYHVDWKRXJKW
$OWKRXJKWKHWHUP³QHRFDWKROLF´ZDVQRWILUVWXVHGXQWLOWKHLGHDKDGEHHQLQ
SUHSDUDWLRQVLQFHWKHEHJLQQLQJRIWKHV,WVJRDOZDVWRLQWHJUDWHPRGHUQKXPDQH[SHULHQFH
ZLWKFKXUFKSULQFLSOHVEDVHGRQ-HVXV&KULVW%HWZHHQDQGDFRXQFLOWRRNSODFH
NQRZQDVWKH³6HFRQG9DWLFDQ&RXQFLO´RU³9DWLFDQ,,´,WVVSLULWDFFRUGLQJWR&DWKROLF
UHVHDUFKHU'DYLG&KHQH\ZDV³PHDQWWRSURPRWHWKHWHDFKLQJVDQGLQWHQWLRQV´RIWUDGLWLRQDO
&DWKROLFLVPEXWLQZD\V³QRWOLPLWHGWROLWHUDOUHDGLQJVRILWVGRFXPHQWV´&KHQH\TXRWHV6DLQW
3DXO¶VSKUDVH³7KHOHWWHUNLOOVEXWWKH6SLULWJLYHVOLIH´&KHQH\³6HFRQG9DWLFDQ&RXQFLO´
7KLVRIIHUHG&KULVWLDQVWKHRSSRUWXQLW\WREH&DWKROLFµLQVSLULW¶DQGIROORZLWVWHDFKLQJVLQWKH
VHQVHLQZKLFKRQHSHUVRQDOO\LQWHUSUHWHGWKHP&KHQH\³6HFRQG9DWLFDQ&RXQFLO´&KHQH\
DOVRVWUHVVHGWKDWPDQ\HOHPHQWVRIVDQFWLILFDWLRQDQGRIWUXWKDUHIRXQGRXWVLGHRUWKRGR[
&DWKROLFLVP¶VYLVLEOHFRQILQHV³6HFRQG9DWLFDQ&RXQFLO´,WVHHPV&DPLOOH&ODXGHOGLGLQGHHG
OLYHDFFRUGLQJWRWKLV1HR&DWKROLFVSLULWDVVKHZRUVKLSHGWKURXJKKHUDUW&HFLOLD%HDX[D
SRUWUDLWLVWVKRZLQJLQWKHVDORQVDWWKHVDPHWLPHDV&ODXGHOVWDWHG³,Q$UWDVLQ5HOLJLRQIDLWK
LVQHFHVVDU\´TWGLQ$\UDO&ODXVH
$GGLWLRQDOO\$QJHOR&DUDQIDDOVRPDLQWDLQVWKLVLGHDFRQVLVWHQWO\WKURXJKRXWKLVVWXG\
&DPLOOH&ODXGHO$6FXOSWXUHRI,QWHULRU6ROLWXGH+HVD\VWKDW&ODXGHO¶VFUHDWLYHSURFHVVHV
VKRXOGEHVHHQDV³IXQFWLRQ>V@RIVHOIXQGHUVWDQGLQJ«DQGRIVSLULWXDOH[SHULHQFH´7R
VXSSRUWWKLVWKHRU\QHDUWKHHQGRIKLVERRNKHGUDZVDFRPSDULVRQEHWZHHQRQHRI5RGLQ¶V
SLHFHVDQGRQHRI&ODXGHO¶V7KHVXEMHFWVDUHVLPLODUZKLFKVXJJHVWVWKH\FRXOGKDYHXVHGWKH
VDPHPRGHOVEXW&DUDQIDIRFXVHVH[FOXVLYHO\RQWKHGLVWLQFWGLIIHUHQFHVEHWZHHQWKHWZRZRUNV
³:KLOH5RGLQZDVSUHRFFXSLHGZLWKWKHIHPDOHERG\WKHSURIDQHDQGLPDJHVRIKLVRZQ
LPDJLQDWLRQRUIDQWDV\&ODXGHORQWKHRWKHUKDQGZDVLQVSLUHGE\WKHVDFUHG«DQGE\
UHPDLQLQJFORVHWRWKHVRXUFHRIKHUUHSUHVHQWDWLRQV«´&DUDQID,QWKLVLQVWDQFHWKHWHUP
³VDFUHG´LVV\QRQ\PRXVZLWKKRO\WUXWK&ODXGHODLPHGWRSRUWUD\WKHGLYLQHQDWXUHRISURIRXQG
KXPDQVHQWLPHQWVDVKRQHVWO\DVSRVVLEOHZKLOHVWLOOPDLQWDLQLQJSXULW\DQGDHVWKHWLFEHDXW\
&DUDQIDODWHULQVLVWV³8QOLNH&ODXGHO¶V>6DNRXQWDOD@ILJ5RGLQ¶V(WHUQDO,GROILJ
ZKHUHWKHPDQNQHHOVDQGWKHZRPDQLVVWDQGLQJµHYRNHVVRPHWKLQJRIWKHYHQHUDWLRQDQG
GHLILFDWLRQDVVRFLDWHGZLWKWKHZRUGµLGRO¶LQVXFKDFRQWH[WLWVPHOOVRIVDFULOHJH«¶5RGLQOLNHG
WRSOD\ZLWKWKLVFRQIXVLRQRIFDUQDODQGVSLULWXDO«,QWKH(WHUQDO,GROWKHUHSODFHPHQWRIWKH
V\PEROLFERG\RI&KULVWZLWKWKHERG\RIDEHDXWLIXOZRPDQLVUHPLQLVFHQWRIWKHEDFNZDUG
PDVVHVRIWKH6DWDQLVWV¶+HWKHQJRHVRQWRFRQWUDVWWKLVZLWK&ODXGHO¶V/H3VDXPHRU7KH
3UD\HUILJDQGWKHQVWDWHVWKDW³EHFDXVH&ODXGHOZDQWVWRH[SUHVVWKHVDFUHGZDQWVWR
VXPPRQLWVSUHVHQFHVKHHPSOR\VP\WKRORJLHV«´DQGRWKHUIHDWXUHVZKLFKSURYRNHWKH
PHDQLQJIXOQHVVRIH[LVWHQFH
1RWRQO\&DUDQIDEXWPDQ\RIWKHFULWLFVZKRDQDO\]H&ODXGHO¶VFROOHFWLRQPDUYHODWLWV
SRZHUIXOO\GLYLQHDXUDDQGGHVFULEHWKHVFXOSWXUHVXVLQJWHUPVVXFKDVLQQRFHQFHVLQFHULW\
FRQWHPSODWLRQVROLWXGHUHFHSWLYLW\DQGKRSH7KHVHFUHWRI&ODXGHO¶VDUWOLHVLQKHU
³ZLOOLQJQHVVWRH[SORUHOLYHGIHHOLQJVDQGWRH[SUHVVWKHPLQIRUPVWKDWDUHQRWFOLFKpVEXWUDWKHU
DVRULJLQDOVLQFHUHDQGWUXWKIXOKDUPRQLRXVDQGZKROH6KHDFKLHYHVWKLVLQIRUPVWKDW
FRPPXQLFDWHWKHDVSLUDWLRQVRIKXPDQLW\WRVLQFHUHO\UHYHDOWKHEHDXWLIXOWKHWUXWKIXODQGWKH
VSLULWXDOJRRG´&DUDQID
7KH5ROHRI6SLULWXDOLW\DQG5HOLJLRQLQ$UWLQ)LQGH6LqFOH)UDQFH
%HIRUHH[DPLQLQJWKHSUHVHQFHRIVSHFLILFDUWLVWVDQGZRUNVZKLFKLQFRUSRUDWHWKHPHVRI
DVSLULWXDODQGRUUHOLJLRXVQDWXUHLWLVQHFHVVDU\WRH[SORUHWKHGLVWLQFWGLIIHUHQFHVLQWKH
GHILQLWLRQVDQGQXDQFHVRIWKHVHWZRWHUPV)LUVWKRZGRHVRQHGHILQHDQLQWDQJLEOHFRQFHSW
VXFKDVWKHVSLULWXDO"7REHJLQLWLVQHFHVVDU\WKDWRQHVHSDUDWHVWKHLGHDRIVSLULWXDOLW\IURPWKDW
RIUHOLJLRQ:KHUHUHOLJLRVLW\LPSOLHVDQDGKHUHQFHWRDVSHFLILFGHQRPLQDWLRQ¶VEHOLHIVDQG
SULQFLSOHVDQGVXJJHVWVWKDWLWVGLVFLSOHVDUHRIRQHPLQGFRQFHUQLQJWKHVHFW¶VSKLORVRSKLHV
VSLULWXDOLW\DVXVHGLQWKLVWKHVLVPXVWEHGHILQHGDVDVDFUHGQHVVHQFRPSDVVLQJSXULW\VLQFHULW\
DQGWUXHSLHW\)XUWKHUPRUHWKRVHVHHNLQJWKHVSLULWXDOLQILQGHVLqFOH)UDQFHZHUHFRQFHUQHG
ODUJHO\ZLWKWUXWK7KLVZDVLQFRQVHTXHQFHWRWKHWXPXOWXRXVVLWXDWLRQRIWKH&KXUFKLQ)UDQFH
EHJLQQLQJLQWKHODWHWKFHQWXU\
)ROORZLQJWKH)UHQFK5HYROXWLRQWKH&DWKROLF&KXUFKORVWPXFKRILWVDXWKRULW\$QWL
FKXUFKODZVZHUHSDVVHGDQGPDQ\DFWVRIGHFKULVWLDQL]DWLRQWRRNSODFH)RUH[DPSOHVWUHHWDQG
SODFHQDPHVZLWKDQ\VRUWRIUHOLJLRXVFRQQRWDWLRQVZHUHFKDQJHG/DUNLQ7KH)UHQFK
ZHUHGHWHUPLQHGWRULGWKHLUODQGRIDQ\UHOLJLRXVLPSOLFDWLRQV<HWWKH\GLGQRWSUHYDLOE\
DUHWXUQWR³VRPHIRUPRIUHOLJLRXVEDVHGIDLWK´ZDVEHJLQQLQJWRWDNHVKDSHDQGDODZ
SDVVHGRQ)HEUXDU\OHJDOL]HGSXEOLFZRUVKLSKRZHYHUWKHUHZHUHVWLOOYHU\VWULFW
OLPLWDWLRQV/DUNLQ
-XVWDIHZ\HDUVODWHUWKH&RQFRUGDWRIZDVVLJQHGUHLQVWDWLQJWKH&DWKROLF
GHQRPLQDWLRQDVWKHPDMRULW\FKXUFKRI)UDQFHDQGEULQJLQJEDFNPRVWRILWVFLYLOVWDWXV/DUNLQ
+RZHYHUWKHUHZDVVWLOOUHOLJLRXVIUHHGRPDWWKLVSRLQWGHVSLWHPDMRULW\LQIOXHQFH,W
ZDVQ¶WXQWLOWKDWWKHUHZDVDODZGHFODULQJRIILFLDOVHSDUDWLRQRIFKXUFKDQGVWDWHIRUWKH
)UHQFK+HQFHDWWKHSHDNRI&ODXGHO¶VFUHDWLRQVHFXODUL]DWLRQFRXOGQRWEHVWRSSHG\HWZH
ILQGHOHPHQWVRIWKHVDFUHGVWUXJJOLQJWREUHDNWKURXJK1HYHUWKHOHVVEHFDXVH)UDQFHFRXOG
QHYHUUHWXUQWRWKHVLWXDWLRQRIDQFLHQUHJLPHUHOLJLRQLWVFLWL]HQVDQGVSHFLILFDOO\LWVDUWLVWV
ZHUHIRUFHGWRH[SUHVVWKHLUVSLULWXDOVHQWLPHQWVWKURXJKQRQWUDGLWLRQDOFKDQQHOV
7KXVDVSUHYLRXVO\PHQWLRQHGWKH)UHQFKVRXJKWWRFRPPXQLFDWHDQHZNLQGRI
FUHGHQFHRQHQRORQJHUURRWHGLQFURVVHVRU/DWLQUHFLWDWLRQV&ODXGHO¶VSKLORVRSKLFSLHFHV
ZHUHFHQWHUHGLQZKDWVKHEHOLHYHGWREHVXSUHPHWUXWK+DUULVRQH[SODLQHGWKDWWKLVORYHRI
WUXWKLV³SUHGRPLQDWLQJRYHUHYHU\GHVLUHRIWKHVRXOSXULI\LQJLWDQGDVVLPLODWLQJLWWRWKH
GLYLQH´+HDGGHGWKDWLQGLYLGXDOVEHLQJGLUHFWHGE\WUXWKZHUHIROORZLQJLQWKHOLNHQHVV
RI*RGDQGLQDVHQVHSDUWLFLSDWLQJDQGFRPPXQLFDWLQJZLWK'LYLQLW\LQHYHU\DFWWKH\
SHUIRUPHG$OWKRXJK&ODXGHO¶VFUHDWLRQVODFNHG*RGOLNHSHUIHFWLRQWKH\ZHUHILOOHGZLWKWUXWK
FRQYLFWLRQDQGSXULW\,WLVWKHVHLQWULQVLFTXDOLWLHVZKLFKRQHSHUFHLYHVZKHQRQHUHIHUVWRKHU
ZRUNDVEHLQJ³VSLULWXDO´LQQDWXUH
7KLVLVOHDGVXVWRDVNRXUVHOYHVFDQDUWEHFRQVLGHUHGDIRUPRIZRUVKLS"-RKQ0LOODLV
DWKFHQWXU\(QJOLVKDUWLVWEHOLHYHGWKDWDUWUHDFKHG³EH\RQGVHQVRU\SOHDVXUH´DQGWKDWWKH
DUWLVWZDV³DVSLULWXDOPHQWRURIKXPDQNLQG´ZKLOHKLVRUKHUDUWZRUNVWRRGDV³DNLQGRIYLVXDO
VHUPRQ´+DUULVRQ7KXVLIZHDGKHUHWRWKLVLGHD&ODXGHO¶VVFXOSWXUHVKDGDQGVWLOOKDYH
WKHSRZHUWRUHOHDVHLQVSLUDWLRQWRWKHLUYLHZHUV$VLQWUDGLWLRQDOZRUVKLSERWKWKHFUHDWLRQDQG
FRQWHPSODWLRQRIWKHSLHFHVLQYROYHIDLWKDTXHVWIRUPHDQLQJGHYRWLRQDQGGHGLFDWLRQ
7KRXJKDUWFULWLFVOLNH&DUDQIDKDYHVWXGLHGWKHIHDWXUHVRIP\VWHU\DQGVROLWXGHLQ
&ODXGHO¶VOLIHDQGZRUNVLWLVWLPHWKDWWKHSXEOLFVHHVRPHWKLQJPRUH)UHLGULFK6KOHLHUPDFKHU
LQKLVDUWLFOH³2QWKH&RQFHSWRI$UW´GHVFULEHGDUWDVD³UHILQHGDQGKHLJKWHQHGDUWLFXODWLRQRI
WKHLQQHUOLIHUDWKHUWKDQDVWKHLPLWDWLRQRUWUDQVIRUPDWLRQRIWKHH[WHUQDOZRUOG´+DUULVRQ
5DWKHUWKDQVLPSO\LPLWDWHKHUVXUURXQGLQJV&ODXGHODFFRPSOLVKHGSUHFLVHO\ZKDW
6KOHLHUPDFKHUGHVFULEHVDVVKHFDSWXUHGWKHTXDOLWLHVRIKHULQQHUOLIHDQGFDUYHGWKHPLQWR
YLVXDOIRUP,QWKHHQGIRUWKLVSRZHUIXOVFXOSWUHVVDFKLHYLQJVSLULWXDOLW\PHDQWH[SUHVVO\
ILQGLQJUHGHPSWLRQWKURXJKKHUDUWDQGWKLVLGHDZLOOFRQWLQXHWREHH[SORUHGWKURXJKRXWWKH
WKHVLV
1RZUHWXUQLQJWRRXURULJLQDOH[DPLQDWLRQRQHPLJKWDVNZKDWWKHVLWXDWLRQRI
VSLULWXDOLW\DQGUHOLJLRXVV\PEROLVPZDVOLNHLQWKHDUWZRUOGRI&ODXGHO¶VHUD:DVLWSUHVHQW"
$QGLIVRGLGLWVDXGLHQFHXQGHUVWDQGWKHV\PEROLVPLWHQJDJHG"/HWXVLQYHVWLJDWHWKH
KLVWRULFDOFRQWH[WVXUURXQGLQJWKHILQGHVLqFOHDUWZRUOGLQRUGHUWRDQVZHUWKHVHTXHVWLRQVDQG
PRUH
0DQ\VXFKDVWKH*RQFRXUWEURWKHUVEHOLHYHGWKDWJHQXLQHUHOLJLRXVUHSUHVHQWDWLRQLQWKH
PRGHUQHUDZDVDQLPSRVVLELOLW\:KLOHGLVFXVVLQJWKHDUWDWWKH8QLYHUVDO([SRVLWLRQRI
DQGFRQYHUVLQJDERXWWKHUROHRIWKHVSLULWXDOLQDUW³WKH*RQFRXUWVGHFODUHGHPSKDWLFDOO\µ$QG
KRZFRXOGLWHPDQDWHZLWKLWVDUGRUDQGDQFLHQWQDLYHWpIURPWKHVHWULXPSKVRIORJLFIURP
WKHVHDSRWKHRVHVRIVFLHQFHZKLFKDUHRXURZQFHQWXU\"¶´TWGLQ'ULVNHO$QDQRQ\PRXVEXW
H[SOLFLWH[DPSOHRIWKLVRSLQLRQDSSHDUHGLQDQDUWLFOHLQ/D9RL[GHVDUWLVWHV7KHDXWKRUVWDWHG
2XUFHQWXU\ZKLFKKDUGO\NQRZVWKH$SRFDO\SVHDQGWKH1HZ7HVWDPHQWKDVEHFRPH
OHVVFUHGXORXVDQGVXSHUVWLWLRXVE\WKHVWXG\RIPDWKHPDWLFDOSK\VLFDODQGQDWXUDO
VFLHQFHVDQGDVLWKDVGLVFRYHUHGDSDUWRIWKHVHFUHWVRIQDWXUHFDQQRORQJHULPDJLQH
WKHVHSLRXVIDEOHVWKHVHGLYLQHDQGDOOHJRULFDOIDQWDVLHVZKLFKPRUDOL]HG&KULVWLDQVLQ
WKH0LGGOH$JHVTWGLQ'ULVNHO
:LWKDFRXQWU\RIWUDGLWLRQDOO\&DWKROLFFLWL]HQVFRXOGWKLVLJQRUDQFHRIIDLWKEHSRVVLEOH")pOL[
-DK\HUDIILUPHGWKDWIDLWKKDGGHSDUWHGIURPUHOLJLRXVDUWDQGPRGHUQFRQVFLRXVQHVVZDVQRZ
ILOOHGZLWKRWKHUWKRXJKWV'ULVNHO<HWLIWKLVZDVWKHFDVHZK\GRZHILQGVRPDQ\VSLULWXDO
PDVWHUSLHFHVIURPWKDWSHULRGILOOLQJPXVHXPVWRGD\"7RVROYHWKLVP\VWHU\OHWXVEHJLQWR
H[DPLQHWKHUHOLJLRXVFRQWH[WRIQLQHWHHQWKFHQWXU\)UHQFKVRFLHW\
)LUVWZKHQFULWLFVGLVFXVVWKHQLQHWHHQWKFHQWXU\WKHUHLVDQLGHDWKDWFLUFXODWHVNQRZQDV
XOWUDPRQWDQLVP7KLVWHUPUHIHUVWRWKHPRYHPHQWRILGHDVZLWKLQWKH&DWKROLF&KXUFKLQWKLV
HUDDQGZLWKWKLVVKLIWFDPHSURIRXQGFKDQJHVLQERWKWKHULWXDOSUDFWLFHDQGRUJDQL]DWLRQDO
VWUXFWXUHRIWKH&DWKROLF&KXUFKLQ)UDQFH'ULVNHO7KHURRWRIWKHZRUGXOWUDPRQWDQH
³GHVLJQDWHGWKRVH&DWKROLFVZKRORRNHGµEH\RQGWKHPRXQWDLQV¶VLJQLI\LQJWKH$OSV«IRU
GLUHFWLRQRIUHOLJLRXVDQGVRFLDOOLIHDQGZKRKDGDQLQRUGLQDWHUHVSHFWIRUWKHSULQFLSOHRI
DXWKRULW\ZKLFKWKH\EHOLHYHGWREHHPERGLHGLQWKHSHUVRQRIWKHSRSH´'ULVNHO7KXVDV
&DWKROLFPHPEHUVORRNHGWRZDUGWKH9DWLFDQIRUDOOLQVWUXFWLRQWKHSLOODURIUHOLJLRQVHHPHGWR
JURZLQFUHDVLQJO\GLVWDQW:LWKXOWUDPRQWDQLVP&DWKROLFVZHUHOHGOHVVE\IDLWKDQGPRUHE\
IHDURI3DSDODXWKRULW\7KHQHHGDURVHWRH[SORUHIDLWKWKURXJKRWKHURXWOHWVWKDQWUDGLWLRQDO
ZRUVKLSWKXVPDQ\XVHGDUWDVDQRXWZDUGH[SUHVVLRQRIWKHLUIDLWK
,Q+:-DQVRQ¶VERRNWK&HQWXU\6FXOSWXUHWKHUHLVDKHDY\HPSKDVLVSODFHGXSRQWKH
LPSDFWRIWKHPDQ\SROLWLFDOILJXUHVDQGZDUPRQXPHQWVZKLFKHPHUJHGLQWKHFHQWXU\IROORZLQJ
WKH)UHQFK5HYROXWLRQDQGLQGHHGORJLFSDWULRWLVPDQGVFLHQFHZHUHHYHUSUHVHQWLQILQGH
VLqFOH)UDQFH+RZHYHU*UDFH*OXHFNLQD1HZ<RUN7LPHVUHYLHZDIILUPVWKDWDUWLVWVRI
WKLVSHULRG³ZHUHLQVWUXPHQWDOLQVXVWDLQLQJDQGUHIUHVKLQJWKHROGWUDGLWLRQVFRQWLQXLQJWR
SURGXFHYLDEOHUHOLJLRXVDUWWKURXJKWLPHVRIVRFLDOFKDQJHDQGXSKHDYDOIURPWKHUHVWRUDWLRQRI
WKH)UHQFKPRQDUFK\LQXQWLOWKHHQGRIWKHFHQWXU\´6KHHQXPHUDWHVWKDWDPRQJWKH
UHOLJLRXVVXEMHFWVUHSUHVHQWHGLQWKLVWLPHDUH³2OG7HVWDPHQWVWRULHV%LEOLFDOODQGVFDSHVDQGWKH
GHSLFWLRQRI-HVXVDQGWKH9LUJLQDVZHOODVVFHQHVRIUHOLJLRXVREVHUYDQFHDQGHYHQVDWLUH´
7KHDUWLVWVRIWKHFHQWXU\ZKRHPEUDFHGWKHVHWKHPHVLQFOXGHG*XVWDYH'RUp-DPHV7LVVRW
$GROSKH:LOOLDP%RXJXHUHDX$OEHUW/pRQ*pU{PH-XOHV-RVHSK/HIHEYUHeGRXDUG0R\VH
WKH3ULQFHVV0DULHRI2UOpDQV$U\6FKHIIHUDQGPDQ\OHVVHUNQRZQLQGLYLGXDOV*OXHFN
$VZHDQDO\]H-DPHV7LVVRWLQSDUWLFXODUZHZLOOJDLQDFOHDUHUYLVXDOL]DWLRQRIWKH
IXQFWLRQUHOLJLRQSOD\HGZLWKLQWKHVRFLHW\RIDUWDQGDUWLVWVRIILQGHVLqFOH)UDQFH3HWUD&KXLQ
KHUDUWLFOHUHYLHZLQJ7LVVRW¶VZRUNIRUWKHMRXUQDO1LQHWHHQWK&HQWXU\$UW:RUOGZLGHRIIHUV
VHYHUDOLQVLJKWVIURPZKLFKZHFDQOHDUQ6KHEHJLQVE\H[SODLQLQJWKDW³(YHQIRUWKHPRVW
HQWKXVLDVWLFDQGFRXUDJHRXVUHYLVLRQLVWVQLQHWHHQWKFHQWXU\UHOLJLRXVDUWKDVORQJEHHQWKHODVW
IURQWLHU´³-DPHV7LVVRW7KH/LIHRI&KULVW´:LWKWKHH[FHSWLRQRI'ULVNHOLQZKRVHERRNZH
UHFHQWO\OHDUQHGRIWKHSUHVHQFHRIXOWUDPRQWDQLVPDUWKLVWRULDQVLQJHQHUDOKDELWXDOO\GLVPLVVHG
ILQGHVLqFOHUHOLJLRXVDUWGXHWRLWV³SHUVLVWHQWVXUYLYDORIWHQLQGHJUDGHGIRUP´&KXQRWHG
FRQWHPSRUDU\SUD\HUFDUGVUHOLJLRXVFDOHQGDUVDQGFDWHFKLVPLOOXVWUDWLRQVDVVRPHRIWKH
FRQWULEXWRUVWRWKLVWDLQWHGJHQUH'RQGDLQHH[SODLQHGLQ/¶LPDJHGHSLpWpHQ)UDQFH³/¶eJOLVH
µHQJDJHWHOOHODOXWHVXUOHWHUUDLQGXUDWLRQDOLVPH¶HWFKHUFKHWHOOHjUpFXSpUHUOHGpLVPHHQVH
VHUYDQWGXODQJDJHHPEOpPDWLTXH°LOGH'LHXV\PEROHVGHVIOHXUVGXF°XU«´ ,QWKHPLGV7LVVRWH[SHULHQFHGDUHOLJLRXVHSLSKDQ\ZKLFKOHGKLPWRGHYRWHWKH
UHPDLQGHURIKLVOLIHWRSRUWUD\LQJ&KULVWLDQUHOLJLRQLQKLVDUW$OWKRXJKWKLVZDVDYHU\
DGPLUDEOHDPELWLRQKHZDVQRWWKHILUVWIURPKLVHUDWRGRVR&KXVDLG³«WKHDUWLVWFDQQRW
KDYHEHHQREOLYLRXVWRWKHHQRUPRXVVXFFHVVRIVLPLODUSURMHFWVPRVWQRWDEO\WKHIDPRXV'RUp
%LEOHILJIHDWXULQJLOOXVWUDWLRQVE\WKH)UHQFKLOOXVWUDWRU*XVWDYH'RUp«>7KHVH@
LOOXVWUDWLRQVZLWKRXWWH[WZHUHSXEOLVKHGLQVRFDOOHG'RUp*DOOHU\HGLWLRQVZKLFKZHUH
HQRUPRXVO\SRSXODU´&KXVWDWHGWKDW7LVVRWKDGD³UHVSHFWIRUWUDGLWLRQ´DQGUHDOL]HGWKDWLIKLV
DUWZDVWREHVXFFHVVIXO³WKHLPDJHVKDGWREHUHFRJQL]DEOH´DQGWKHVSHFWDWRUVKDGWREHDEOHWR
IHHO³DFRQQHFWLRQWRWKHIDPLOLDUUHSUHVHQWDWLRQVRIWKHOLIHRI&KULVW´+RZHYHUKHGLGQRW
VLPSO\LPLWDWHWKHGHSLFWLRQVVXUURXQGLQJKLPKHDOZD\VDLPHGWRLOOXVWUDWHWKHIDPLOLDUVFHQH
IURPDGLIIHUHQWSRLQWRIYLHZ$SHUIHFWH[DPSOHRIWKLVFDQEHVHHQLQKLVSDLQWLQJ&UXFLIL[LRQ
VHHQIURPWKH&URVVILJ7KLVXQXVXDODSSURDFKWDNLQJWKHSHUVSHFWLYHRI-HVXV
'RHVWKH&KXUFKHQJDJHLQWKHVWUXJJOHDJDLQVWUDWLRQDOLVP"$QGGRHVLWORRNWRUHFODLP'HLVPE\XVLQJ
HPEOHPDWLFODQJXDJHWKHH\HRI*RGV\PEROVRIIORZHUVDQGRIWKHKHDUW"
ORRNLQJGRZQZDUGSURYRNHVDPHDVXUHRIKHDUWZUHQFKLQJHPRWLRQGHILFLHQWLQW\SLFDO
LQWHUSUHWDWLRQV
1HYHUWKHOHVVWKRXJK&DPLOOH&ODXGHODOVRKRSHGWRLQVSLUHYLHZHUVWRIHHODVSLULWXDO
FRQQHFWLRQZLWKKHUZRUNVKHFDUULHGWKHFKDOOHQJHRQHVWHSIXUWKHU6KHWRRNDULVNDQG
IROORZHGZKDW:DVVLO\.DQGLQVN\WHUPHGKHU³LQQHUQHFHVVLW\´7KXVUDWKHUWKDQXVLQJ
WUDGLWLRQDOELEOLFDOVFHQHVDVKHUIRXQGDWLRQDV7LVVRWDQGPRVWRIKHURWKHUFRQWHPSRUDULHVGLG
VKHWRRNRQDPXFKORIWLHUJRDOVKHFDSWXUHGWKHWKHPHVDQGHPRWLRQVHPERGLHGZLWKLQUHOLJLRQ
DQGSRUWUD\HGWKHPLQDQLQQRYDWLYHZD\WKURXJKKHUPXOWLGLPHQVLRQDOVFXOSWXUH
6SLULWXDO6\PEROLVP
+DYLQJEULHIO\ZLWQHVVHGWKHKLVWRU\RIYLVXDOVSLULWXDOLW\VWLOOVWURQJO\SUHVHQWLQWK
FHQWXU\)UDQFHOHWXVQRZDGYDQFHWRZDUGH[DPLQLQJWKHWKHRULHVDQGLPSDFWEHKLQGLW%HIRUH
DEOHWRLQWHUSUHW&DPLOOH&ODXGHO¶VZRUNRQDGHHSHUOHYHORQHPXVWKDYHDQXQGHUVWDQGLQJRI
WKHSHUFHSWLRQRIV\PEROLFUHSUHVHQWDWLRQWKDWZDVSUHVHQWLQWKHODWHWKDQGHDUO\WKFHQWXU\
:KHUH(UZLQ3DQRIVN\DVZHOODVHDUOLHUDUWKLVWRULDQVFRQFHQWUDWHGRQH[SRVLQJWKH
JHQHUDOPHDQLQJRIDSLHFHRIDUWIRUPDQ\FULWLFVLQ&ODXGHO¶VHUDWKHIRFXVKDGVKLIWHGWRXVLQJ
DYHU\GLIIHUHQWPHWKRGRILQWHUSUHWDWLRQ:KHUHSUHYLRXVO\WKHFRPPRQWHQGHQF\ZDVWRDVN
ZKDWWKHLPSOLFDWLRQRIDVFXOSWXUHPLJKWEHFULWLFVVKLIWHGWRDVNLQJ³+RZLVPHDQLQJPDGH
SRVVLEOH":KDWLVWKHSURFHVVZKHUHE\DIHZPDUNVRQFDQYDVRUWKHVKDSLQJRIDOXPSRI
PDUEOHHQDEOHVXVWRFRPHXSZLWKLQWHUSUHWDWLRQV"+RZLVLWWKDWZHFDQORRNDWDQLPDJHDQG
ILQGDPHDQLQJLQLW"´+DWW+RZGRHVRQHVXFFHHGDWVLPXOWDQHRXVO\DQDO\]LQJWKHLPDJH
DQGWKHLQWHUSUHWDWLRQRIDZRUNVXFKDV&ODXGHO¶V/¶LPSORUDQWH"
+DWWDQG.ORQNLQWKHLUFULWLFDOLQWURGXFWLRQRIDUWKLVWRU\PHWKRGVWDXJKWWKDWZKHQ
DQDO\]LQJDQLQWHUSUHWDWLRQRQHPXVWEH³FRQFHUQHGOHVVZLWKDQ\LQGLYLGXDOXWWHUDQFHRU
LQWHUSUHWDWLRQDQGPRUHZLWKWKHODUJHUFRQWH[WZKLFKPDNHVPHDQLQJSRVVLEOH´)RUWKH
SXUSRVHVRIWKLVWKHVLVZHZLOOILUVWVHHNRXWWKHVLJQVDQGFRQQRWDWLRQVZKLFKPDNHSHUVRQDO
LQWHUSUHWDWLRQSRVVLEOH7KHWKHRULVWDQGFULWLF5RODQG%DUWKHVUHYROXWLRQL]HGWKHZD\PDQ\
UHJDUGHGDUWLVWLFLQWHUSUHWDWLRQ+HSURSRVHGWKDWXSRQDSLHFH¶VFRPSOHWLRQWKHUHFDPHDERXW
³WKHGHDWKRIWKHDXWKRU´DQG³WKHELUWKRIWKHUHDGHU´+DWWZKLFKRSHQHGWKHGRRUWR
DFFHSWHGLQGLYLGXDOLQWHUSUHWDWLRQ%XWZKDWNLQGRIV\VWHPHQDEOHGVXFKUDGLFDOSRZHUWREH
SXWLQWKHKDQGVRIWKHSXEOLF"$VZHDQDO\]H³WKHUXOHVRIFRPPXQLFDWLRQDQGH[SUHVVLRQ
>ZKLFK@XQGHUSLQ´+DWW)UHQFKFXOWXUHZHZLOOJDLQDFOHDUHUXQGHUVWDQGLQJRIKRZ
QLQHWHHQWKFHQWXU\VFXOSWRUVDQGVSHFLILFDOO\&ODXGHOVXFFHHGHGDWFRQYH\LQJSURIRXQGVSLULWXDO
V\PEROLVPZLWKLQWKHLUZRUN
)LUVW'¶$OOHYDLQKHUSKLORVRSK\RIDQDO\]LQJV\PEROLFLQWHUSUHWDWLRQEHJLQVE\
H[SODLQLQJWKDWWKHWDVNRIWKLVEUDQFKRIDUWKLVWRU\LV³WRDQDO\]HVLPXOWDQHRXVO\WKHLPDJHDQG
WKHLQWHUSUHWDWLRQRIWKHLPDJHWKHUHODWLRQEHWZHHQWKHWZRZK\GRHVDVXEMHFWLQWHUSUHWLWLQD
SDUWLFXODUZD\"DQGWKHDQFKRULQJRIWKHLPDJHLQWKHLQWHUSUHWDWLRQDQGYLFHYHUVD´
%HIRUHEHJLQQLQJWRDSSO\WKLVPHWKRGWR&ODXGHO¶V/¶LPSORUDQWHRU7KH,PSORUHUVRPHWLPHV
UHIHUUHGWRDV7KH%HVHHFKHULWLVQHFHVVDU\WRHOXFLGDWHWKHFRPSOH[RULJLQVRIWKHSLHFH
)RUWKH6DORQ&ODXGHOFUHDWHGWKHVFXOSWXUH/HGLHXHQYROpRU7KH9DQLVKHG*RG
ILJWRUHOD\KHUGHVSDLUDVKHUWXPXOWXRXVUHODWLRQVKLSZLWK5RGLQZDVVORZO\EXW
LQHYLWDEO\FRPLQJWRDQHQG7KLVSLHFHHYROYHGLQWRWKHSOHDGLQJILJXUHVKHXVHGLQKHUJURXSRI
WKUHHLQ/¶kJHP€U+RZHYHU\HDUVDIWHUKHUVHSDUDWLRQZLWK5RGLQVKHFRQWLQXHGWRWDLORUWKLV
SLHFHLQWRZKDWZHQRZNQRZDV/¶LPSORUDQWHILJ7KRXJKWKHSRVHLVLQFUHGLEO\VLPLODUWR
WKDWRIWKHVHYHUHG\RXQJZRPDQLQWKHILQDOYHUVLRQRI/¶kJHP€U&ODXGHOFRQWLQXHGWRSHUIHFW
DQGSURGXFHWKLVILJXUHVHSDUDWHO\DVDQDXWRQRPRXVUHSUHVHQWDWLRQZLWKRXWWKHLQIOXHQFHRI
5RGLQEOXUULQJWKHVFHQH7KLVIUDPHGPRPHQWLVVROHO\DERXWKHU
%HIRUHDQDO\]LQJWKHILJXUHLWVHOIOHWXVH[DPLQHWKHSRZHUIXOLPSDFWRIZKLFK
/¶LPSORUDQWHZDVFDSDEOH,QORQJDIWHU&ODXGHO¶VLQWHUQPHQW(XJqQH%ORWZURWHKHUD
WRXFKLQJOHWWHUUHPLQLVFLQJRIKHUDVWRXQGLQJWDOHQW,QMXVWDIHZVKRUWOLQHVLWLVFOHDUWKDWKHU
VNLOOLQYROYHGPXFKPRUHWKDQUHOLHYLQJILJXUHVIURPVWRQHKHUPDVWHUSLHFHVKHOGD
WUDQVFHQGHQWDOTXDOLW\+HZURWH
;JDUGHXQVRXYHQLUHQFRUHpPHUYHLOOpGHYRWUHPDUEUHGH/¶LPSORUDQWHIRQGXSDUPRL
HQEURQ]HSRXUOHVDORQGHTX¶LOFRQVLGqUHFRPPHOHPDQLIHVWHGHODVFXOSWXUH
PRGHUQH9RXVpWLH]HQILQµYRXVPrPH¶OLEpUpHWRWDOHPHQWGHO¶LQIOXHQFHGH5RGLQ
DXVVLJUDQGHSDUO¶LQVSLUDWLRQTXHSDUOHPpWLHU/¶pSUHXYHGHSUHPLHUWLUDJHHQULFKLHGH
YRWUHVLJQDWXUHHVWXQHGHVSLqFHVPDvWUHVVHVGHPDJDOHULH-HQHODUHJDUGHMDPDLVVDQV
XQHpPRWLRQLQGLFLEOH,OPHVHPEOHYRXVUHYRLU&HVOqYUHVHQWU¶RXYHUWHVFHVQDULQHV
SDOSLWDQWHVFHWWHOXPLqUHGDQVOHUHJDUGWRXWFHODFULHODYLHGDQVFHTX¶HOOHDGHSOXV
P\VWpULHX[$YHFYRXVRQDOODLWTXLWWHUOHPRQGHGHVIDXVVHVDSSDUHQFHVSRXUFHOXLGHOD
SHQVpH4XHOJpQLH/HPRWQ¶HVWSDVWURSIRUW 5LYLqUH
1RZDVZHHPEDUNRQDQDO\]LQJWKHGHWDLOVRIWKLVVFXOSWXUHDVZHOODVUHDGLQJLW
DFFRUGLQJWRWKHPHWKRGVSUHVHQWLQWKHWKFHQWXU\ZHPXVWH[SORUHVHYHUDOIHDWXUHVWKHYLVXDO
V\PEROLVPRIWKHZRUN)LUVWDIWHUDQLQLWLDOJODQFHZHPXVWGHWHUPLQHZKDWLIDQ\SDUWRIWKH
;VWLOOKROGVDPHPRU\ILOOHGZLWKZRQGHURI\RXU,PSORUHULQPDUEOHZKLFK,FDVWLQEURQ]HIRUWKH
VDORQRIDQGFRQVLGHUVLWWREHWKHPDQLIHVWRRIPRGHUQVFXOSWXUH$WODVW\RXZHUH\RXUVHOIWRWDOO\IUHHRI
5RGLQ
VLQIOXHQFHDVJUHDWLQ\RXULQVSLUDWLRQDVLQ\RXUVNLOO(PEHOOLVKHGZLWK\RXUVLJQDWXUHWKHILUVWFDVWLVRQH
RIWKHPDJQXPRSXVRIP\JDOOHU\,QHYHUORRNDWLWZLWKRXWDUXVKRIXQVSHDNDEOHHPRWLRQ,IHHO,VHH\RXDJDLQ
7KRVHKDOIRSHQOLSVWKRVHTXLYHULQJQRVWULOVWKHOLJKWLQWKHJD]HDOORIZKLFKVSHDNRIOLIHDQGLWVPRVWHVVHQWLDO
P\VWHU\:LWK\RXRQHOHIWWKHZRUOGRIIDOVHDSSHDUDQFHVIRUWKHRQHRIWKRXJKW:KDWDJHQLXV7KHWHUPLVQRW
WRRVWURQJ
LPDJHFDWFKHVWKHYLHZHU¶VH\HILUVW$UHFHUWDLQHOHPHQWVODUJHUWKDQRWKHUV",QWKHFDVHRI
VFXOSWXUHDUHFHUWDLQHOHPHQWVLQJUHDWHUUHOLHI"'¶$OOHYD
&RQVHTXHQWO\DVZHYLHZ/¶LPSORUDQWHZHGRLQGHHGQRWLFHSULPDULO\WKHZRPDQ¶V
DUPVH[WHQGLQJIDURXWIURPWKHFHQWUDOL]HGYHUWLFDOYLVXDOFROXPQLQZKLFKWKHUHVWRIWKH
VFXOSWXUHLVDOLJQHG7KHVWUDLQHGXQFRPIRUWDEOHSRVWXUHRIWKHNQHHOLQJZRPDQFDWFKHVWKH
YLHZHU¶VH\HDQGOHDGVWKHJD]HWRZDUGWKHWLOWHGKHDG+HUKLSVDQGDEGRPHQDUHYLVLEO\ODUJHU
LQSURSRUWLRQWRKHUOHJVDQGXSSHUWRUVRDVLJQRIWKHSUHJQDQF\VKHH[SHULHQFHG
1H[WZHPXVWH[SORUHWKHGHQRWDWLYHDQGFRQQRWDWLYHDVSHFWVRIWKLVLPDJH'¶$OOHYD
7KHGHQRWDWLYHPHDQLQJVRIWKLVSLHFHDUHIDLUO\VWUDLJKWIRUZDUG7KHILJXUHNQHHOLQJ
UHSUHVHQWVDKXPEOHEXWGLVWUDXJKWZRPDQ7KHFXUYDWXUHVHHQLQKHUDUPVLQGLFDWHVWKHYRLGRI
DORVVVKHVXIIHUV$OVRWKHWLOWRIKHUKHDGDQGDQ[LRXVH[SUHVVLRQVLJQLI\SURIRXQGWKRXJKWDQG
DEHVHHFKLQJUHTXHVWIRUFRQVLGHUDWLRQIURPDQH[WHULRUDQGSRVVLEO\GLYLQHVRXUFH
+RZHYHUWKHVHVLJQVKDYHSURIRXQGLQWHUZRYHQFRQQRWDWLYHPHDQLQJV:KLOHRIWHQ
&ODXGHO¶VILJXUHVVXFKDV/H3VDXPHDQG'HHSLQ7KRXJKWV\PEROL]H³KDUPRQ\ERWKZLWK
WKHPVHOYHVDQGZLWK*RGWKHDQ[LRXVSRVHRIWKHILJXUHVLQ7KH9DQLVKHG*RG´DQGLQWKHODWHU
YHUVLRQ/¶LPSORUDQWHVSHDNVWRXVRIDQH[LVWHQFHWKDW&DUDQIDGHVFULEHVDV³IUDJPHQWHGZLWKLQ
LWVHOIDQGVHSDUDWHGIURPWKHVRXUFH+HJRHVRQWRGHVFULEHWKDW³7KHIDFLDOH[SUHVVLRQVRI
WKHILJXUHVSRLQWEDFNWRDWLPHZKHQWKH\H[SHULHQFHG*RG¶VSUHVHQFHDOWKRXJKDWSUHVHQWKHLV
DEVHQWIURPWKHLUH[SHULHQFHDQGWKH\ORQJIRUDIXWXUHUHXQLRQZLWK+LP´/LNHZLVH
0DWKLDV0RUKDUGWSRLQWHGRXWWKHLPSRUWDQFHRIWKHFXUYHRIWKHDUPVZKLFK³UHFRUGLQVSDFH
WKHLGHDRIWKHRQHZKRLVDEVHQW´$\UDO&ODXVH+RZHYHUPRUHLPSRUWDQWO\KHODWHU
FRPSDUHGWKH³HOHYDWHGULJKWDUP>WR@DNLQGRIZLQJWKDWQHDUO\HOHYDWHVKHUDQGWKDWOHDGVKHU
WRZDUGWKHGLVDSSHDUHG*RG´&DUDQID7KLVVKRZVWKDWWKH³DEVHQW2QH´LQWKHVH
UHQGLWLRQVQRORQJHUUHSUHVHQWHG5RGLQDVWKH\RXWKIXOILJXUHGLGLQ/¶kJHP€UIDLWKKDG
WULXPSKHGRYHUSDVVLRQ$VDVLGHQRWH5RGLQ¶V7KH3URGLJDO6RQILJRIVKDUHVD
VLPLODUVWDQFH\HWWKHSRVLWLRQLQJRIWKHDUPVLQSDUWLFXODUFRQYH\VWKHSRVVLELOLW\RIWZR
GLIIHUHQWVLJQVDYDLODEOHWRLQWHUSUHWHUV:KLOHPDQ\EHOLHYHWKDW5RGLQPROGHGWKLVVRUURZIXO
ERG\ZLWKWKHIHUYRURIDILQDOSUD\HUIRUIRUJLYHQHVVWKHVLJQRIWKHDUPVDOVRIXQFWLRQVDVD
SRVVLEOHLQGLFDWRURIWKHSURGLJDOVRQ¶VMXELODWLRQDQGUHOLHILQWKHDIWHUPDWKRIKLVIDWKHU¶VPHUF\
DQGDFFHSWDQFH
+HDUNHQLQJEDFNWR&ODXGHOLWLVLQWHUHVWLQJWRQRWHWKHKLVWRULFDOGLPHQVLRQSUHVHQWHYHQ
LQWKHWLWOHVRIWKHWZRZRUNV&DUDQIDVWDWHGWKDW³WKHWLWOHVWKHPVHOYHVWUDQVODWHWKH
SRVHV«>DQG@WKHH[SUHVVLRQVLQWRDFRQWLQXRXVPRYHPHQWWKDWLQWHJUDWHVH[LVWHQFHZLWKLQDQHZ
DQGXQLI\LQJUHODWLRQVKLSWKDWOLQNVH[LVWHQFHZLWKDFHQWHUEH\RQGWKHVHOI´,QLWLDOO\LQ/H
GLHXHQYROpWKHZRPDQEHOLHYHVDOOWREHORVWDQGDSSHDUVKRSHOHVVWKDW*RGZLOODFFRPSDQ\KHU
WKURXJKKHUSDLQIXOWULDOV7KHVDPHFDQEHLQIHUUHGRIWKHDUWLVW¶VSDUDOOHOIHHOLQJVDWWKLVWLPH
+RZHYHUPRQWKVODWHUXSRQFRPSOHWLRQRI/¶LPSORUDQWHERWKWKHDUWLVWDQGWKHVXEMHFWVHHPWR
KDYHDWOHDVWSDUWLDOO\DFNQRZOHGJHGWKDWGLYLQHKHOSLVSRVVLEOHDQGDUHQRZHQJDJHGLQSOHDGLQJ
ZLWK*RGIRU+LVLQWHUFHVVLRQ$QDO\]LQJWKHVHFRQQRWDWLYHDVSHFWVRIWKLVVFXOSWXUHJLYHV
YLHZHUVDIRXQGDWLRQIRUEHWWHUXQGHUVWDQGLQJKRZWKLVSLHFHZDVGLVWLQFWLYHO\H[FHSWLRQDO
DPRQJVDFUHGUHSUHVHQWDWLRQVRIWKHHUD
1H[WYLHZHUVPXVWGHWHUPLQHZKHWKHUWKHUHDUHFRGHVWKDWDUHEURXJKWWREHDURQWKH
LQWHUSUHWDWLRQRIWKHVHLPDJHVLQTXHVWLRQ'¶$OOHYD,Q/¶LPSORUDQWHYLHZHUVPXVWKDYHWKH
FRGHRIDNQRZOHGJHRIORYHORVVDQGKXPDQHPRWLRQDVZHOODVWKHFRGHRIWKHDUWLVW¶V
EDFNJURXQGLQRUGHUWRIXOO\DQGFRUUHFWO\LQWHUSUHWWKHLPDJH1H[WRQHPXVWEHDZDUHRI
HOHPHQWVRILQWHUWH[WXDOLW\ZKLFKDUHDWZRUNLQWKHLPDJH'¶$OOHYD7REHVWXQGHUVWDQG
WKLVRQHPXVWMX[WDSRVHWKHYHUVLRQVRI/¶LPSORUDQWHZLWKWKHLURULJLQDOWULR/¶kJHP€U7KH
VLJQRIWKHHYHQWXDOFRPSOHWHVHSDUDWLRQRIRXUNQHHOLQJVXEMHFWLVLWVHOIDV\PERORISHUPDQHQW
VHSDUDWLRQDQGXQFHUWDLQW\$OVRFRQVLGHULQJWKHVWULNLQJVLPLODULWLHVEHWZHHQWKHIDFHRIWKLV
SLHFHDQGWKDWRI&ODXGHO¶V/H3VDXPHRU7KH3UD\HUILJLQWHUWH[WXDOLW\HQFRXUDJHV
SHUFHSWLYHYLHZHUVWRVWRSDQGEDODQFHWKHWZR:LWKHUHOOVWDWHVWKDWOLNH/¶LPSORUDQWH³7KH
3UD\HU«>LV@DVHDUFKIRUSHDFHWKURXJKUHOLJLRQ´+RZHYHUGHVSLWHWKHREYLRXVVLPLODULWLHV
EHWZHHQWKHP'¶$OOHYDVWDWHVWKDWGLVFRYHULQJLQWHUWH[WXDOLW\VKRXOGQRWEHDIRUPRIGUDZLQJ
FOHDUSDUDOOHOVUDWKHULW³VKRXOGPDNHYLHZHUVDZDUHRIWKHXQLTXHQHVVRIWKHLPDJH´7KXV
ZKHUHWUDGLWLRQDOUHSUHVHQWDWLRQRIVXSSOLFDWLRQDVVHHQLQ/H3VDXPHLQYROYHGJHQWO\FORVHG
H\HVDFDOPVWDQFHDQGOLQHDUVWUDLJKWOLQHVLQWKLVUHQGLWLRQ&ODXGHOHPSOR\HGDQHZFRGHRI
UHSUHVHQWLQJVRUURZIXOGHVSDLU7KHZRPDQNQHHOVLQSUD\HUZKLFK'¶$OOHYDVWDWHVLV³DIRUP
RIGLUHFWDGGUHVVWR*RG«´,QFRQWUDVWDQDUWLFOHLQWKH/H)LJDURVSHFLDOHGLWLRQ
IODZOHVVO\GHVFULEHG/H3VDXPH¶VVSLULWXDOPRPHQWLQWKHIROORZLQJFRPPHQW³/H
3VDXPHHVW«HQFDSXFKRQQpOHV\HX[FORVSRUWDQWWRXWHO¶DWWHQWLRQGXVSHFWDWHXUVXUODSULqUH
LQWpULRULVpH´ 'H%D\VHU7KLVPRPHQWLQZKLFKWKHYLHZHULVWUXO\SXOOHGLQE\WKH
LQWHULRUL]HGSUD\HUUHVXOWVIURP&ODXGHO¶VLQLPLWDEOHWDOHQWWRHPEHGDQHVVHQFHRIKHUKHDUWLQ
KHUZRUN7KHDUWLFOHFRQWLQXHV³&DPLOOHUHVWLWXHGDQVVHVVFXOSWXUHVGHVpWDWVG¶kPHLQWLPHVHW
FHODSHUVRQQHG¶DXWUHQHOHUHQGDYHFDXWDQWGHWDOHQW´ 'H%D\VHU7KRXJK,EHOLHYHWKH
SUDLVHVRIWKLVSLHFHWREHMXVWDVWUXHZLWKUHJDUGWR/¶LPSORUDQWHWKHWHFKQLTXH&ODXGHOXVHGWR
FRQYH\KHUVLJQVZDVYHU\GLIIHUHQW,Q/H3VDXPHWKHYLHZHULVDOORZHGWREHFRPHSDUWRIWKH
SDLQDQGH[SHULHQFHZKHUHDVWKHVLJQVLQ/¶LPSORUDQWHLQYLWHWKHYLHZHUWRIHHOEXWSUHYHQWKLP
IURPSDUWLFLSDWLQJLQWKHVFHQH
7KH3UD\HULVKRRGHGZLWKFORVHGH\HVGLUHFWLQJDOORIWKHYLHZHU¶VDWWHQWLRQRQWKHLQWHULRUL]HGSUD\HU
&DPLOOHUHFUHDWHVLQKHUVFXOSWXUHVWKHLQWLPDWHVWDWHVRIVRXOVDQGQRRQHHOVHFDQGRWKLVZLWKDVPXFKWDOHQW
,QWHUPVRIWKHIRUPDOLVVXHVUDLVHGWKURXJKWKHVHVLJQVWKHFRQFUHWHIHDWXUHVZKLFK
SRUWUD\WKLVZRPDQIUDJLOHO\DQGLQQHHGRIGLYLQHGHOLYHUDQFHYDU\JUHDWO\EHWZHHQWKRVH
SUHYLRXVO\GHVFULEHGLQ/¶LPSORUDQWH)LUVWRQHPXVWH[DPLQHWKHFORWKKRRGZKLFKVKDGRZV
KHUIDFH,WFRPSOHWHVDFLUFOHFRQQHFWHGZLWKKHUQHFNZKLFKFRQYH\VIHHOLQJVRIERWK
LPSULVRQPHQWDQGVRODFH,QFRQWUDVWWKHVXEMHFWRI/¶LPSORUDQWHLVUHQGHUHGHQWLUHO\QXGHD
VLJQRIKHUFRPSOHWHO\H[SRVHGDQGXQSURWHFWHGVWDWH7KLVVLJQDORQHRSHQVWKHZD\IRUDPRUH
VHYHUHLQWHUSUHWDWLRQIURPWKHYLHZHUV
1H[WRQHRIWKHPRVWXQLTXHGLIIHUHQFHVEHWZHHQWKLVVXEMHFWDQGPRVWRWKHUVLVWKDWKHU
H\HVDUHQRWHQJDJHGLQDQH[WHULRUJD]H7KH\DUHFORVHGDVZDVPHQWLRQHGWRH[SRVHKHUVWDWH
RIVDFUHGUHIOHFWLRQ$OVRWKRXJKWKHUHDUHQRYLVLEOHWHDUVVWUHDPLQJGRZQWKHUHLVDVXEWO\
GHHSHUSDWKSROLVKHGLQWRWKHVWRQHXQGHUKHUULJKWH\HZKLFKOHDYHVURRPIRUDVKDGRZWRIDOO
DQGLQYLWHVYLHZHUVWRDVVXPHWKDWWHDUVKDGLQGHHGIDOOHQQRWORQJDJR)LQDOO\PRYLQJ
GRZQZDUGWKRXJKWKHZRPDQ¶VMDZLVORRVHO\XQIL[HGDQGWKHFRUQHUVRIKHUPRXWKDUHSXOOHG
GRZQZDUGUHYHDOLQJDZHDNLQVHFXULW\ZHQRWLFHWKDWKHUKHDGLVLQDUHYHUHQWDQGOHYHO
SRVLWLRQUHYHDOLQJWKDWVKHVWLOOKROGVRXWKRSHIRUDPLUDFOHRIUHGHPSWLRQ7KXVUHH[DPLQLQJ
/¶LPSORUDQWHZHVHHWKDW&ODXGHOKDVLQYROYHGDYHU\GLIIHUHQWFRGHRIUHSUHVHQWDWLRQ7KH
VDPHVLJQVRIKXPLOLW\ORVVGHVSDLUDQGDJOLPPHURIKRSHDUHSUHVHQWEXW&ODXGHO¶VPDQQHURI
WUDQVPLWWLQJWKHPSURYLGHVGLIIHUHQFHVZKLFK³EHDURQWKHLQWHUSUHWDWLRQ´DQHOHPHQWZKLFK
'¶$OOHYDDWWHVWVLVLPSRUWDQWZKHQDQDO\]LQJWKHUHDGLQJRIDV\PEROLFSLHFHRIDUW
1H[WDFDUHIXOYLHZHUPXVWGHWHUPLQHZKHWKHUPDWHULDOVDQGWHFKQLTXHVVLJQLI\DFWXDO
PHDQLQJLQDZRUN$OWKRXJKPDUEOHLWVHOILVQHLWKHUDV\PEROQRUPRWLI'¶$OOHYDWDXJKW
WKDWLWFDQFHUWDLQO\EHDVLJQLILHU6KHVWDWHGWKDWLWZDVSRVVLEOHWRWUHDWWKHPDWHULDODV
SURGXFWLYHRIPHDQLQJ7KXV&ODXGHO¶VXVHRIPDUEOHLQYLWHGLQWHUSUHWDWLRQVZKLFKIRFXVHG
RQWKHULJLGVWDWHRIWKHILJXUH¶VZRUU\DVZHOODVWKHXQLYHUVDODQGHWHUQDOQDWXUHRIVRUURZ
)XUWKHUPRUHWDNLQJLQWRFRQVLGHUDWLRQWKHFRPSOH[LW\DQGGLIILFXOW\LQYROYHGLQVFXOSWLQJD
VLQJOHODUJHVFDOHILJXUHIURPVROLGPDUEOHDV'¶$OOHYDFODLPHG³WKHDUWLVWU\«VLJQLILHGYDOXH´
)LQDOO\WKHODVWVWHSRIRXUGHWDLOHGDQDO\VLVLQYROYHVUHYHDOLQJWKHGHL[LVWKHHQXQFLDWLYH
VWUXFWXUHRIWKHLPDJH³:KRLVEHLQJDGGUHVVHGE\WKLVLPDJHDQGKRZ"´'¶$OOHYD,Q
/¶LPSORUDQWHWKLVTXHVWLRQEHFRPHVFRPSOLFDWHGGXHWRWKHIDFWWKDWWKHIHPDOHKDGRULJLQDOO\
EHHQVHSDUDWHGIURP/¶kJHP€U+RZHYHUVKHQRORQJHUDSSHDOVWRWKHPHWDSKRULFDO5RGLQVKH
QRZDGGUHVVHVWKHKHDYHQVLQKHUIDLWKIXOXSZDUGJD]H$V'¶$OOHYDVDLGLI³QRILJXUHORRNV
RXWRIWKHIUDPHDWWKHUHDGHU´WKHLPDJH³GRHVQRWHQJDJHLWVYLHZHUVGLUHFWO\´LQYLVXDOWHUPV
7KURXJKWKLVWKRURXJKH[DPLQDWLRQLWLVFOHDUWKDWLQGHHG³SLFWRULDOODQJXDJHPXVWEH
GHFLSKHUHG´'¶$OOHYD)XUWKHUPRUHZHKDYHVHHQWKHEHQHILWRIDQDO\]LQJQRWRQO\WKH
LPDJHLWVHOIEXWDOVRWKHLQWHUSUHWDWLRQRIDVSHFLILFLPDJH&RQVHTXHQWO\LQNHHSLQJLQPLQGDOO
HOHPHQWVZKLFKSOD\DIXQFWLRQLQGLYLGXDOO\DQGFRKHVLYHO\LQDZRUNRQHLVPXFKPRUHOLNHO\
WRUHYHDOWKHPRVWFRPSHOOLQJDQGFRQYLQFLQJRILQWHUSUHWDWLRQV $VZHQH[WHPEDUNRQDQDQDO\VLVRI/¶LPSORUDQWH/DSHWLWHFKkWHODLQHLQLWVYDULRXV
YHUVLRQVDQGRWKHUPDVWHUSLHFHVLQWKHIRUPHUZHZLOOVHHKRZWKHVWDWXHSURYLGHVDYLVXDO
H[SHULHQFHGHSLFWLQJWKHDFWRISOHDGLQJIRUUHGHPSWLRQZKHUHDVLQWKHVHFRQGUHGHPSWLRQLV
SHUVRQLILHG%XWILUVWLQHDFKFDVHZHPXVWUHIOHFWRQWKHDOOHJRU\SRUWUD\HG%HJLQQLQJZLWK
/¶LPSORUDQWHZKHQRQHFRQVLGHUVWKHWUDJHG\&ODXGHOZDVVXIIHULQJDWWKHWLPHRIWKHILJXUH¶V
FUHDWLRQWKHSOHDGLQJZRPDQLVXQGRXEWHGO\PHDQWWRUHSUHVHQWWKHDUWLVWKHUVHOI,IRQH
VHDUFKHVIRUWKHURRWVZKLFKFDXVHGKHUVRUURZWKHUHDUHPDQ\7KHPRVWSDLQIXORIWKHVH
FDXVHVZDVZLWKRXWDGRXEWWKHDERUWLRQVKHZDVIRUFHGWRKDYH:HZLOOH[DPLQHWKLVPRUHLQ
WKHDQDO\VLVRI/DSHWLWHFKkWHODLQH$GGLWLRQDOO\&ODXGHOVXIIHUHGLPPHQVHO\IURPWKH
WUHDWPHQWVKHUHFHLYHGIURPDOOVLGHV+HUIDPLO\FRPSODLQHGFRQVWDQWO\RIWKHLQGLJQLW\VKH
EURXJKWWRWKHLUUHSXWDWLRQDQGKHUPRWKHUUDUHO\VKRZHGKHUDQ\VLQFHUHORYH,QWKH
SURIHVVLRQDOGRPDLQ&ODXGHOZDVIUXVWUDWHGDWWKHIDFWWKDWKHUYRLFHZDVUDUHO\KHDUGDPRQJWKH
YRLFHVRIPDOHDUWLVWVGLVFRXUDJHGWKDWVKHKDGWRVDFULILFHVRPXFKIRUZKDWFDPHVRHDVLO\WR
RWKHUVDQGH[DVSHUDWHGWKDW5RGLQGLGQRWDOZD\VWUHDWKHUZLWKWKHFRPPLWPHQWDQGGHYRWLRQ
VKHGHVHUYHG.HHSLQJHDFKRIWKHVHFDXVHVDQGPRUHLQPLQGZKLOHH[DPLQLQJ/¶LPSORUDQWHLW
LVFOHDUWKDWWKLVLV&ODXGHO¶VDOOHJRULFDOVHOIUHSUHVHQWDWLRQ$VDILQDOSRLQW,DJUHHZLWK9DQ
6WUDWHQWKDWVW\OLVWLFDQGKLVWRULFDODSSURDFKHVVKRXOGQRWEHLJQRUHGDQGZLWKHDFKRI
&ODXGHO¶VZRUNVVWXGLHGLQWKLVWKHVLV,ZLOOFHUWDLQO\LQFRUSRUDWHDQDQDO\VLVWRHDFKRIWKRVH
HQGV+RZHYHULWLVZKHQRQHH[DPLQHVDSLHFHRIDUWZLWKPXOWLSOHSHUVSHFWLYHVWKDWPRUH
QXDQFHGXQGHUVWDQGLQJLVDFKLHYHG
$VZHOHDYHRXUWKHRUHWLFDODQDO\VLVQRZFRQVFLRXVRIWKHFRPSOH[LW\ILQGHVLqFOH
VFXOSWXUHVLQYROYHLVLWSRVVLEOHWRGUDZRXWWKHLQWULQVLFVSLULWXDOPHDQLQJVHDOHGZLWKLQWKH
VWRQH"9DQ6WUDWHQTXRWHV3DQRIVN\LQDIILUPLQJWKDWZKHQHQWHULQJLQWRDQLFRQRJUDSKLFDO
LQWHUSUHWDWLRQRQHPXVWUHJDUGWKHGHHSHUFRQWHQWDVSDUWRID³ZRUOGRIV\PEROLFDOYDOXHV´
7RORFDWHKRZWKHVHDUHUHSUHVHQWHGLQ&ODXGHO¶VVFXOSWXUHVLWZLOOILUVWEHQHFHVVDU\WR
VHHKRZWKH\DUHSRUWUD\HGLQRWKHUZRUNVRIDUWRIWKHWLPHSHULRG7KXVDUPHGZLWKP\KXPDQ
DQGUHOLJLRXVH[SHULHQFHDORQJZLWKZKDW3DQRIVN\FDOOVP\³V\QWKHWLFLQWXLWLRQ«SHUVRQDO
SV\FKRORJ\«DQGFRPSUHKHQVLYHZRUOGYLHZ´9DQ6WUDWHQ,DPSUHSDUHGWRHPEDUNRQDQ
DQDO\VLVWRSURYHWKDWWKHWKHPHRIUHGHPSWLRQLVLQGHHGYLVLEO\DQGXQGHQLDEO\SUHVHQWLQ
&DPLOOH&ODXGHO¶VZRUNV
:KLOHGHOYLQJLQWRKRZWKLVWKHPHLVUHSUHVHQWHGLQVFXOSWXUHLWLVLPSRUWDQWWRGHILQHWKH
LGHDRIUHGHPSWLRQDV&ODXGHOZRXOGKDYHXQGHUVWRRGLW$VZDVWKHFDVHRIPRVWRI)UHQFK
VRFLHW\LQWKHODWHWKFHQWXU\&ODXGHOZDVUDLVHGLQDWUDGLWLRQDOO\&DWKROLFIDPLO\ZLWKD
EURWKHU3DXOZKRZDVLQWHQVHO\UHOLJLRXVDQGGHYRWHGDJUHDWGHDORIKLVOLIHWRVWXG\LQJDQG
VKDULQJWKHJRVSHO7KXVLWLVKLJKO\SUREDEOHWKDW&ODXGHOWRRZRXOGKDYHEHHQUHDVRQDEO\ZHOO
YHUVHGLQ&DWKROLFWKHRORJ\&DWKROLFLGHRORJ\URRWHGLQWKH%LEOHWHDFKHVWKDW&KULVWVXIIHUHG
WKHDWRQHPHQWWRSURYLGHWKHJLIWRIUHGHPSWLRQWRDOOPHQQRWRQO\WRIUHHWKHPIURPWKHLUVLQV
EXWDOVRWROLIWWKHLUEXUGHQVRIDQ\QDWXUH,QPDQ\ELEOLFDOLQVWDQFHVPHQSOHDGZLWK*RGIRU
GHOLYHUDQFHDQGODWHUUHGHPSWLRQFRPHVLQDQXQOLNHO\IRUPVXFKDVDVRXOVRRWKHGSDWLHQFH
JUDQWHGRUDZRUU\OLIWHG$FOHDUH[DPSOHFDQEHVHHQLQWKHFDVHRI-HUHPLDKRIWKH2OG
7HVWDPHQW+HSOHDGVLQFKDSWHUYHUVH³,VWKHUHQREDOPLQ*LOHDGLVWKHUHQRSK\VLFLDQ
WKHUH"´$QGWKRXJKKLVUHOHDVHGRHVQRWFRPHLPPHGLDWHO\*RGUHDVVXUHVKLPVD\LQJ³,ZLOO
GHOLYHUWKHH«WKRXVKDOWQRWEHJLYHQLQWRWKHKDQGRIWKHPHQRIZKRPWKRXDUWDIUDLG)RU,
ZLOOVXUHO\GHOLYHUWKHHDQGWKRXVKDOWQRWIDOO«EHFDXVHWKRXKDVWSXWWK\WUXVWLQPH«´
-HUHPLDK
7KRXJK&ODXGHOPD\KDYHQRWEHHQIDPLOLDUZLWKWKLVSDUWLFXODUVWRU\VKHZRXOGKDYH
LGHQWLILHGZLWKRWKHUELEOLFDODFFRXQWVLQZKLFKUHGHPSWLRQZDVVRXJKWDIWHUDQGIRXQG&DUDQID
UHPLQGVXVWKDWIURPWRKHUHGXFDWLRQ³KDGEHHQHQWUXVWHGWRWKH6LVWHUVRI&KULVWLDQ
'RFWULQH´7KLVLQIOXHQFHIURPKHUXSEULQJLQJLVDQLQWHJUDOSDUWRIWKHVSLULWXDOLW\RQHFDQ
VHHDQGIHHOLQKHUZRUNDQGKHUEURWKHU3DXODWWHVWHGWRLWPDQ\WLPHV+HRIWHQUHIHUUHGWRKHU
ZRUNDVFRQWDLQLQJD³YROXSWXRXVFKDVWLW\´WKDWRWKHUDUWLVWVODFNHG)XUWKHUPRUHWKH
LQYHVWLJDWLRQLQWR7KHRVRSK\DQGWKHORQJHVWDEOLVKHGSUDFWLFHRIZHDYLQJVSLULWXDOLW\LQWR
VHFXODUDUWZDVVWLOOSUHVHQWLQWKHZRUNRIDUWLVWVVXUURXQGLQJ&ODXGHOGXULQJKHUFUHDWLYH\HDUV
/HWXVFRQWLQXHWRH[DPLQHWKHVHLQIOXHQFHVLQFORVHUGHWDLO
&+$37(563,5,78$/,7<$1'5('(037,21
6SLULWXDOLW\DQG5HGHPSWLRQLQWKH:RUNVRI&ODXGHO¶VPDUWQHU5RGLQDQGKHU
&RQWHPSRUDULHV
,QDVPXFKDV&ODXGHOZDV5RGLQ¶VDSSUHQWLFHIRUVRPDQ\\HDUVDQGWKDWWKH\VKDUHG
PRGHOVDVWXGLRDQGNQRZOHGJHWKHILUVWVRXUFHLQZKLFK,VHDUFKHGIRUUHGHPSWLRQLQHDUO\WK
FHQWXU\VFXOSWXUHZDVZLWKLQ5RGLQ¶VFROOHFWLRQ$PRQJDUWKLVWRULDQVLWLVDZLGHO\DFFHSWHG
WKHRU\WKDW5RGLQRIWHQFUHDWHGYHUVLRQVRIKLPVHOILQWKHILJXUHVKHVFXOSWHG6SHFLILFDOO\KLV
VFXOSWXUHVRI$GDPDUHRIWHQXQGHUVWRRGWRGXDOO\UHSUHVHQWWKHDUWLVWKLPVHOI$OLFLD)D[RQ
VXSSRUWVWKLVWKHRU\LQKHUDUWLFOH³$Q,QWHUSUHWDWLRQRI5RGLQ¶V$GDP´DQGZLWKLQLWVKHGHOYHV
LQWRWKHVSLULWXDOIDFHWVRIWKHILJXUHLQLWVYDULRXVDGDSWDWLRQV
)LUVWWKHUHLVDQLQWHUHVWLQJMX[WDSRVLWLRQWREHQRWLFHGZKHQFRQVLGHULQJGLYLQLW\LQ
5RGLQ¶V$GDPILJ,QKLVOLIHWLPHRWKHUVFXOSWRUVUHIHUUHGWR5RGLQ¶VILUVWYHUVLRQRI$GDP
DV³/¶(VFODYH7KH6ODYHVXJJHVWLQJ«>WKDWLWUHVHPEOHG@0LFKHODQJHOR¶V«6ODYHVFXOSWXUHLQ
WKH/RXYUH´ILJ)D[RQ7KH\DOVRDIILUPHGWKDWLWVIHDWXUHVDGGLWLRQDOO\ERUHD
UHVHPEODQFHWRWKH$GDP0LFKHODQJHORSDLQWHGRQWKH6LVWLQHFHLOLQJDQGLQGHHG)D[RQH[SODLQV
WKDWWKHOHIWKDQGLVQRGRXEWDFORVHUHSOLFD+RZHYHUPRUHFDUHIXOREVHUYHUVZLWQHVVHGWKDW
5RGLQVFXOSWHG$GDP¶VULJKWKDQGDOPRVWLGHQWLFDOO\WRWKHKDQGRI*RGLQ0LFKHODQJHOR¶V
IUHVFRVHHILJ³7KHWKXPEDQGWKHLQGH[ILQJHU´ZKLFKSRLQWSRZHUIXOO\³DUHLQDVLPLODU
SRVLWLRQ´)D[RQ7KLVVKRFNLQJMX[WDSRVLWLRQLPSOLHGWKDWWKHILUVWPDQVKRXOGEHYLHZHGDV
ERWKDFUHDWLRQDQGDFUHDWRU3KLORVRSKHU+HQUL%HUJVRQWDXJKWWKDWZKHQZH
FRQVLGHUWKDWZKLOHFUHDWLQJDUWDUWLVWVKDYHWKHSRZHUWRGHFRPSRVHDQGUHFRPSRVHQRWRQO\
VSDFHDQGIRUPEXWLQDZD\OLIHLWVHOIZHEHWWHUXQGHUVWDQGWKHPDJQLWXGHRIWKHLUVNLOODQG
FUHDWLRQV+DUULVRQ
)D[RQFRQFOXGHV³,I5RGLQ¶V$GDPLVVHHQWRHPERG\ERWKWKHILUVW$GDPDQGWKHODVW
$GDPWKDWLV&KULVWKLVJHVWXUHVVXJJHVWQRWRQO\WKHFUHDWLRQDQGWKHIDOORIPDQEXWDOVRKLV
UHGHPSWLRQWKURXJK&KULVW¶VVDFULILFHRIGHDWKRQWKHFURVV´
7KLVLVQRWWKHRQO\LQVWDQFHLQZKLFK5RGLQLPLWDWHVFODVVLFVRXUFHVDQGVXPPRQV
VSLULWXDOLW\WKURXJKKLVVFXOSWXUH+LVDFNQRZOHGJHGVRXUFHIRU7KH*DWHVRI+HOOZDV'DQWH¶V
'LYLQH&RPHG\DQGWKRXJKPRVWZKRYLHZWKLVPDVWHUSLHFHVHHLWWREHDGHVSDLULQJGHSLFWLRQRI
³JULHIVWULFNHQJXLOWDQGXQDOWHUDEOHDOLHQDWLRQIURP*RG´,ZRXOGOLNHWRHPSKDVL]H)D[RQ¶V
FRQFOXVLRQ³,I«WKHJHVWXUHVRI$GDPHPERG\ERWKWKHFUHDWLRQRIPDQDQGKLVXOWLPDWH
UHGHPSWLRQDQGUHVXUUHFWLRQWKURXJK&KULVWWKLVWUDQVIRUPVWKHPHDQLQJRIWKHILJXUHDQGDOVR
E\H[WHQVLRQVXJJHVWVDGLPHQVLRQRIKRSHWR7KH*DWHVRI+HOO´7KHRULJLQDOWH[W
FRQILUPVWKLVLGHDDVFRQVLVWHQWO\ZKHQ$GDPLVUHIHUUHGWRKHLVOLQNHGZLWK&KULVW$WWKH
SRLQWZKHQ$GDPH[SODLQVKRZ&KULVWUHGHHPHGKLPDQGDOOKXPDQNLQG)D[RQTXRWHVFDQWR
RIWKH3DUDGLVRDQG,ZRXOGOLNHWRKLJKOLJKWOLQHVDQG
«IRUSDVWDQGIXWXUH+HSDLGWKHILQH«
6XFKOLJKWDVPD\LQKXPDQQDWXUHVKLQH
:DVDOOLQIXVHGE\+LPWKDWGLGFUHDWH
%RWKRQHDQGRWKHUZLWK+LVSRZHUGLYLQH
'R)D[RQDQG,VWHSWRRIDULQDIILUPLQJWKDW5RGLQZDVPRUHWKDQVOLJKWO\VHQVLWLYHWR
UHOLJLRQDQGWKHUHIRUHDSSOLHGLWVWKHPHVVXFKDVWKHLGHDRIUHGHPSWLRQLQKLVZRUN"5RGLQ
KLPVHOIVXSSRUWHGRXUDUJXPHQWLQZKHQLQDQLQWHUYLHZKHVDLG³,KDYHDOZD\VFRPELQHG
>WKH@UHOLJLRXV«ZLWKDUWIRUZKHQUHOLJLRQLVORVWDUWLVDOVRORVW´$QGZKHQDVNHGZKHWKHUWKH
SXEOLFZDVULJKWLQLQWHUSUHWLQJKLVZRUNDVERWKVHFXODUDQGVSLULWXDODQGLIKHKDGLQWHQGHGLWWR
EHVRKHVDLGWKDWVRPHLQWHUSUHWDWLRQVPLJKWZHOOEHWRRLQJHQLRXV³%XW´KHVDLG³<RXPD\
UHVWDVVXUHGWKDWWKHPDVWHUVDUHDOZD\VFRQVFLRXVRIZKDWWKH\GR«´TWGLQ)D[RQ,WLV
VDIHWRVD\WKDW&DPLOOH&ODXGHOZRUNHGZLWKWKHVHVDPHDWWLWXGHV
)LQDOO\LWLVREYLRXVWKDW5RGLQEHOLHYHGLQUHGHPSWLRQZLWKFHUWDLQW\DQGVRXJKWWR
LQWHJUDWHWKHWKHPHLQWRPRUHWKDQRQHRIKLVVFXOSWXUHVEXWZKDWUHDVRQGLGWKHVXFFHVVIXO
PDVWHUKDYHWRVHHNLWSHUVRQDOO\"6RPHPD\EHOLHYHKHVRXJKWUHGHPSWLRQIURPWKHVLQIXOZD\
KHRIWHQOLYHGDQGWKHOXVWIXOGHSLFWLRQVKHFUHDWHG)D[RQVXJJHVWVLWPD\EHIURPWKHJULHIKH
IHOWDWWKHGHDWKRIKLVVLVWHU0DULDZKRZDVSUHSDULQJWREHFRPHDQXQDWWKHWLPHRIKHUGHDWK
,QGHHGLQKLVDQJXLVKDVDIXUWKHUVLJQRISHQLWHQFH³KHMRLQHGWKHRUGHURIWKH³3qUHVGX7UqV
6DLQW6DFUHPHQW´LQDV%URWKHU$XJXVWLQH)D[RQ<HWZKDWHYHUWKHUHDVRQKLV
LQFRUSRUDWLRQDQGHIIHFWLYHDSSOLFDWLRQRIWKHUHGHPSWLYHWKHPHZLWKLQKLVDXWRELRJUDSKLFDO
ZRUNVDUHVXIILFLHQWWRSURYHWKDWKLVVWXGHQW&ODXGHOZDVQRWVWHSSLQJRXWRIFRQYHQWLRQDO
ERXQGVE\LQFOXGLQJWKHVDPHVSLULWXDOWKHPHVLQKHUZRUN
$VRQHDLPVWRGUDZFRPSDULVRQVEHWZHHQ&DPLOOH&ODXGHODQGRWKHUDUWLVWVZKR
LQFRUSRUDWHGIRUPVRIQRQWUDGLWLRQDOVSLULWXDOLW\LQWKHLUDUWLWLVZLVHWRFRQVLGHUWKHSDUDOOHOV
EHWZHHQWKHZRUNRI9LQFHQW9DQ*RJKDVZHOODVWKDWRI3DXO*DXJXLQ'HERUDK6LOYHUPDQLQ
KHUERRN9DQ*RJKDQG*DXJXLQ7KH6HDUFKIRU6DFUHG$UWRIIHUVVLJQLILFDQWLQVLJKWLQWR
VHYHUDOXQLTXHDQGGHYRXWUHSUHVHQWDWLRQV6KHEHJLQVE\DIILUPLQJWKDW9DQ*RJKVRXJKWRXW
WKH³SUHVHQFHRIDQHWHUQDODQGLQILQLWHGLYLQLW\LQDQGWKURXJKWKHVWXIIVRIPDWWHU´6LOYHUPDQ
7KLVLVHYLGHQWLQPDQ\RIKLVSLHFHVEXWLVPRVWYLVLEOHLQKLVSDLQWLQJ7KH6WDUU\1LJKW
RIILJ
+LVUHDVRQIRUFUHDWLQJWKLVSLHFHLVLWVHOIURRWHGLQKLVQHHGIRUDFRQQHFWLRQZLWKWKH
GLYLQH,QDQOHWWHUKHVWDWHG³:KHQ,KDYHDWHUULEOHQHHGRI²VKDOO,VD\WKHZRUG²
UHOLJLRQ7KHQ,JRRXWDQGSDLQWWKHVWDUV´7KRXJKKHXVHGWKHWHUP³UHOLJLRQ´LWLVQHFHVVDU\
WRXQGHUVWDQGWKDWKHZDVQRWLPSO\LQJWKDWKHGHVLUHGRUJDQL]HGIRUPDO&DWKROLFZRUVKLS
5DWKHUKHGHVFULEHGD\HDUQLQJIRUDWUDQVFHQGHQWDOH[SHULHQFH,QWKHVDPHOHWWHUKHH[SODLQHG
WKDWKHZDVLQVSLUHGWRSDLQWWKLVVWDUU\VFHQHDVKHUHDGDFROOHFWLRQRISRHPVE\:DOW:KLWPDQ
DQGZDVPRYHGE\WKHLULPDJHU\5HIHUULQJWR:KLWPDQKHVDLG³+HVHHVXQGHUWKHJUHDW
VWDUOLWYDXOWRIKHDYHQDVRPHWKLQJZKLFKDIWHUDOORQHFDQRQO\FDOO*RG²DQGHWHUQLW\LQLWV
SODFHDERYHWKHZRUOG$QGDVKLVWDOHQWSURJUHVVHG9DQ*RJKZDVUHFRUGHGDVDFKLHYLQJWKH
VDPHUHDVVXUDQFH6LOYHUPDQVDLG³+HFRQVLGHUHGWKHPXVLFRIKLVFRORUVWREHDPHDQVRI
LPSDUWLQJVSLULWXDOFRPIRUW´7KLVVRRWKLQJFRQVRODWLRQH[WHQGHGQRWRQO\WRKLVYLHZHUV
EXWDOVRWRKLPVHOI/LNH&ODXGHODVKHWULHGWRSXWDVHQVHRIOLIH
VP\VWHULHVLQWRSDLQWKLVZRUN
SURYLGHGKLPZLWKDWKHUDSHXWLFKHDOLQJRXWOHWWRKLVGLVWXUEHGPHQWDOVWDWH<HWZKLOH&ODXGHO
HYHQWXDOO\ORVWDOOKRSHIRUUHGHPSWLRQWKURXJKORYH9DQ*RJKFRQWLQXHGWREHOLHYHWKDWORYH
DQG*RGZHUHLQWHUWZLQHGDQGZHUHWKHRQO\WUXHVRXUFHVRIGHOLYHUDQFH
$ILQDOSDUDOOHOWR&ODXGHOFDQEHZLWQHVVHGLQWKHIDFWWKDWIRU9DQ*RJKWKHGLVWLQFWLRQ
EHWZHHQVSLULWXDOLW\DQGUHOLJLRQZDVHVVHQWLDOWRKLVOLIHDQGKLVZRUN7KHODWWHUPHDQWYHU\
OLWWOHWRKLPDIWHUKHKDGEHHQH[LOHGIURPKLVPLVVLRQEHFDXVHRIKLVRYHU]HDORXVQDWXUH,QWKH
DIRUHPHQWLRQHGOHWWHUKHDIILUPHG
7KDW*RGRIWKHFOHUJ\PHQ+HLVIRUPHDVGHDGDVDGRRUQDLO%XWDP,DQDWKHLVWIRUDOO
WKDW"7KHFOHUJ\PHQFRQVLGHUPHDVVXFK²EHLWVREXW,ORYHDQGKRZFRXOG,IHHOORYH
LI,GLGQRWOLYHDQGLIRWKHUVGLGQRWOLYHDQGWKHQLIZHOLYHWKHUHLVVRPHWKLQJ
P\VWHULRXVLQWKDW1RZFDOOWKDW*RGRUKXPDQQDWXUHRUZKDWHYHU\RXOLNHEXWWKHUHLV
VRPHWKLQJZKLFK,FDQQRWGHILQHV\VWHPDWLFDOO\WKRXJKLWLVYHU\PXFKDOLYHDQGYHU\
UHDODQGVHHWKDWLV*RGRUDVJRRGDV*RG7REHOLHYHLQ*RGIRUPHLVWRIHHOWKDWWKHUH
LVD*RGQRWDGHDGRQHRUDVWXIIHGRQHEXWDOLYLQJRQHZKRZLWKLUUHVLVWLEOHIRUFH
XUJHVXVWRZDUGDLPHUHQFRUHWKDWLVP\RSLQLRQ
1H[W6LOYHUPDQSUHVHQWVDQLQWHUHVWLQJMX[WDSRVLWLRQDVVKHLQYHVWLJDWHVWKHZRUNVRI
*DXJXLQZKRZDVNQRZQWRKDYHDVVRFLDWHGZLWK9DQ*RJK:KLOHWKHODWWHUIRFXVHGRQ
XSOLIWLQJVSLULWXDODWWULEXWHVDQGHOHPHQWV*DXJXLQ³H[SUHVVHGDQHQGXULQJSUHRFFXSDWLRQZLWK
WKHWKHPHVRIPLVHU\SURIDQDWLRQDQGVXIIHULQJ´ZKLFKKHDWWHPSWHGWRSURMHFWWKURXJKDOOHJRU\
)RUH[DPSOH*DXJXLQ¶VXVHRISRYHUW\VWULFNHQZRPHQLQYLWHGQRWIDLWKIXOKRSHEXW
UDWKHUVHYHUHGHVSRQGHQF\,QUHIHUHQFHWRKLVIHPDOHILJXUHVKHRIWHQXVHGWKHWHUP
³SDXYUHVVHV´ZKLFKQRWRQO\VLJQDOHGWKHVRFLDOFRQGLWLRQRISRYHUW\EXWHYHQPRUHVWURQJO\
VLJQDOHG³DVWDWHRIVSLULWXDOWUDQVJUHVVLRQDQGGHVRODWLRQ´6LOYHUPDQ$VRQHH[DPLQHV
WKHIRUPDOHOHPHQWVRIKLVZRUNWKLVSDLQEHFRPHVHYLGHQW
,QWKHVDUWLVWVEHJDQWRXVHPRUHLQWHQVHFRORUVDVWKH\GHSLFWHGVFHQHVVXFKDVWKH
SK\VLFDOVXIIHULQJRI&KULVW¶VSDVVLRQZLWKEORRGIORZLQJDQGFRYHULQJ+LVERG\7KHVHW\SHV
RILPDJHV³JDYHYLVXDOH[SUHVVLRQWRWKHQHZO\HPRWLRQDOL]HGSLHW\RIWKHODWHUQLQHWHHQWK
FHQWXU\«DQG>WR@WKHKHLJKWHQHGLQWHUHVWLQFRQWHPSODWLQJWKHZRXQGVDQGWKHSDLQVRIWKH
6DYLRU´6LOYHUPDQ7KHSXEOLFRIWKLVHUDVKRZHGDQHZLQWHUHVWLQWKHHPRWLRQDOUHDOPRI
UHOLJLRVLW\DQGDUWLVWVVXFKDV9DQ*RJK*DXJXLQDQG&ODXGHOIHGWKLVQHZGHVLUHZLWK
QRQWUDGLWLRQDODUWLVWLFUHQGLWLRQV
/HWXVXVHWKLVQHZSHUVSHFWLYHDVZHDQDO\]H*DXJXLQ¶VDGDSWDWLRQRI9LVLRQ$IWHUWKH
6HUPRQILJ7KLVSDLQWLQJZKLFKLVFRQVLGHUHG*DXJXLQ¶VILUVW6\PEROLVWZRUN
GHSLFWVDVFHQHIURPWKH%LEOHLQZKLFK-DFREZUHVWOHVZLWKDQDQJHO+RZHYHUWKHIRFXVRIWKH
SLHFHLVRQDJURXSRIZRPHQZKRIROORZLQJDVHUPRQLQFKXUFKVHHWKLVVWUXJJOHWUDQVSLUH
WKURXJKDYLVLRQ6LOYHUPDQVXJJHVWVWKDWWKHIODWQHVVDQGEULJKWQHVVRIWKHFRORUVDUHQRWVLPSO\
UHIOHFWLQJWKHWUHQGRIWKHHUD¶VSRSXODUDUW,QIDFW*DXJXLQ¶VFRORUVFRUUHODWHGLUHFWO\WR³D
FULWLFDOUHOLJLRXVGLPHQVLRQDQGSUHVHQWLQWHUHVWLQJFRUUHVSRQGHQFHVWRWKHVSLULWXDODVSLUDWLRQVKH
DVVRFLDWHGZLWKWKHVXEMHFWVKHGHSLFWHGLQWKHSDLQWLQJ´,DIILUPWKDW*DXJXLQLQYROYHG
VXFKKHLJKWHQHGOXPLQRVLW\DQGVDWXUDWHGSDWFKHVRIFRORUVSHFLILFDOO\WRUHOD\WKHLQWHQVLW\RI
WKLVVDFUHGVFHQH7KHLQWHQVHLQILOWUDWLRQRIUHGRIIHUVDSRZHUDNLQWRWKHLPDJHVRI&KULVW¶V
VXIIHULQJ7KLVLVMX[WDSRVHGZLWKWKHGLVWULEXWLRQRIZKLWHDQGOLJKWQHVVVXUURXQGLQJWKH
ZRPHQDUDGLDQFHZKLFKLOOXVWUDWHVWKHLUSLRXVIDLWKIXOO\FDOPDQGWUXVWLQJQDWXUH6LOYHUPDQ
ODWHUDGGVWKDW*DXJXLQ³LGHQWLILHGZLWKWKHSHDVDQWZRPHQQRWDVHIIRUWIXOZRUNHUVLQWKHILHOGV
EXWDVPHVPHUL]HGFROODERUDWRUVLQWKHYLVLRQDU\KDUYHVWRIWKHVRXO´7KXVOLNH&ODXGHO
DQG9DQ*RJK*DXJXLQDSSHDUVWRKDYHZRUVKLSHGWKURXJKKLVDUWDVDPHDQVRIV\PEROLF
YHQHUDWLRQ7KHVHDUWLVWV¶ZRUNVZHUHVDQFWLILHGE\WKHKDUPRQ\RIWKHILJXUHVWKDWWKH\EURXJKW
WROLIH6LOYHUPDQILQLVKHVKHUDQDO\VLVRI9LVLRQ$IWHUWKH6HUPRQE\VWDWLQJ³7KHIORZLQJUHG
JURXQGDERXQGVLQWKHVSLULWXDOIUXLWVVRZQLQWR*DXJXLQ¶VLQWHULRUZRUOG´7KHVHVDPH
HYLGHQFHVRI&ODXGHO¶VLQWHULRUKROLQHVVDUHYLVLEOHLQKHUVFXOSWXUH3VDXPHRU7KH3UD\HUZKLFK
ZHH[DPLQHGHDUOLHU$OWKRXJKVKHGLGQRWXVHFRORUVWRFRPPXQLFDWHWKHVDFUHGQHVVRIKHU
WKHPHVVKHLQFRUSRUDWHGWKHVDPHHPRWLRQWKURXJKWKHH[SUHVVLRQVPRYHPHQWVDQGDOOHJRULHV
VKHVFXOSWHG
$QDGGLWLRQDOOHVVHUNQRZQVFXOSWXUHZKLFKH[SUHVVHGUHGHPSWLRQLQWUDGLWLRQDOIRUPLV
$OEHUW%DUWKRORPp¶V$GDPDQG(YHILJLQZKLFKWKHDUWLVWSRUWUD\VWKHHDUWK¶VILUVWPDQDQG
ZRPDQDWWKHPRPHQWRIWKHLUIDOO<HWWKHGLIIHUHQFHVHHQZKHQRQHFRPSDUHVWKLVZRUNZLWKD
SLHFHE\5RGLQRU&ODXGHOLVWKDWIURPHYHU\DQJOHWKHSRVLWLRQRIWKHFRXSOHRYHUZKHOPHGZLWK
VRUURZH[XGHVDVHQVHRIGHVSDLU7KHSRVVLELOLW\RIWKHLUUHGHPSWLRQDQGHPDQFLSDWLRQLVEDUHO\
YLVLEOHEHQHDWKWKHLUKRSHOHVVVWUDLQHGIDFHV(YH¶VKDQGVFRYHU$GDP¶VIDFHDQGKLVKDQGV
VHHPWREHUHDFKLQJWRSXVKKHUDZD\
1H[WLWLVLPSRUWDQWWRUHFRJQL]HWKDWPDQ\DUWLVWVRI&ODXGHO¶VHUDDWWULEXWHGWKHLU
JXLGLQJLQIOXHQFHLQDUWWRWKHLUDGKHUHQFHWRWKHLGHDRI7KHRVRSK\7KH(QF\FORSHGLDRI
5HOLJLRQLQLWVHQWU\RQ7KHRVRSK\WHDFKHVWKDWLWLVDIRUPRI³VSHFXODWLRQRULQYHVWLJDWLRQ
VHHNLQJGLUHFWNQRZOHGJHRIWKHP\VWHULHVRIEHLQJDQGQDWXUHZLWKSDUWLFXODUFRQFHUQRQWKH
QDWXUHRI'LYLQLW\,WDOVR>UHIHUV@WR«KLGGHQNQRZOHGJHRUZLVGRPWKDWRIIHUVWKHLQGLYLGXDO
HQOLJKWHQPHQWDQGVDOYDWLRQ7KHWKHRVRSKLVWDQGLQRXUFDVHWKHRVRSKLFDODUWLVWV³VHHNWR
XQGHUVWDQGWKH«ERQGVWKDWXQLWHWKHXQLYHUVHKXPDQLW\DQGWKHGLYLQHZRUOG´(OLDGH
³7KHRVRSK\´:KLOH*DXJXLQDVPHQWLRQHGHDUOLHUIRFXVHGRQWKHV\PEROVRIPLVHU\DQG
VXIIHULQJZKLFKERQGPDQNLQGLQH[LVWHQFH&ODXGHOIRFXVHGRQUHSUHVHQWLQJVLJQVRIWKHSXUSRVH
RIOLIHDQGWKHXQLYHUVDOO\VKDUHGHPRWLRQDOWKHPHV7KHHQF\FORSHGLDDGGVWKDWWKHRVRSKLVWV
³PXVWDSSO\DFWLYHLPDJLQDWLRQLQRUGHUWRGUDZIRUWKV\PEROLFPHDQLQJV´IURPOLIH(OLDGH
³7KHRVRSK\´,QUHJDUGVWR9DQ*RJK*DXJXLQDQG&ODXGHOWKH\FHUWDLQO\ZRYHERWK
LPDJLQDWLRQDQGLQVSLUDWLRQZLWKLQWKHLUFUHDWLRQVZKLFKDOORZHGWKHLUYLHZHUVWKHSRVVLELOLW\RI
GUDZLQJRXWWKHPRVWSURIRXQGRILQWHUSUHWDWLRQV
+HOHQD%ODYDWVN\PHQWLRQHGHDUOLHUZDVRQHRIWKHILUVWYLVLRQDU\ZRPHQDQGIRXQGHUV
LQWKLVPRYHPHQWDQGWDXJKWWKDW³7KHNQRZOHGJHRIWKH7KHRVRSKLVWVFXOOHGIURPERRNVDQG
WHPSOHVDQGDXGDFLRXVGUHDPLQJZDVSRZHUIXOHQRXJKWRSRLQWDUWLVWVWRZDUGDQHZLQZDUGQHVV
DQGWKHSRVVLELOLW\RIWUDQVODWLQJWKDWLQZDUGQHVVLQWRYLVLEOHIRUP/LSVH\6KHODWHUZURWH
³:KHUH:+2:+$7LV*2'"´/LSVH\DQGWKURXJKWKHRVRSK\VWURYHWRDQVZHUWKHVH
TXHVWLRQV,IZHFRQVLGHU&ODXGHOWREHDWKHRVRSKLVWVKHWRRDSSOLHGWKHLGHDLQKHUFUHDWLRQVWR
DQVZHUWKHVDPHDIRUHPHQWLRQHGTXHVWLRQV7KLVLVSODLQO\YLVLEOHLQWKHHDUO\YHUVLRQRI
/¶LPSORUDQWHZKLFKZDVHQWLWOHG/HGLHXHQYROp7KURXJKWKHDXWRELRJUDSKLFDOVFXOSWXUH
&ODXGHOVRXJKWGLYLQHFRPIRUWDQGKHDYHQO\NQRZOHGJH$OWKRXJKWKHUHKDYHQRW\HWEHHQ
VWXGLHVGRQHRQZKHWKHUVKHVSHFLILFDOO\DGKHUHGWRWKHLGHDLWVFRPSRQHQWVZHUHHYLGHQW
WKURXJKZKDWKHUEURWKHUFDOOHGKHU³YHLOHG´DUWLVWLFVSLULWXDOLW\)XUWKHUPRUHFRQVLGHULQJWKH
XQRUWKRGR[QDWXUHRIODWHWKFHQWXU\7KHRVRSK\WKHIDFWWKDWQRQWUDGLWLRQDOIRUPVRI
VSLULWXDOLW\ZHUHJLYHQYDOXHJLYHVFRPSHOOLQJVXSSRUWWR&ODXGHODVVKHZDVQRWWUDGLWLRQDOO\
GHYRXW&RQWLQXLQJWRH[DPLQHWKHVXUURXQGLQJFRQWH[W+HOHQD%ODYDWVN\¶VLGHDVFRQFHUQLQJ
7KHRVRSK\ZHUHSDUWLFXODUO\LQIOXHQWLDOLQWKHDUWZRUOGVHHLQJDV1DWXUDOLVPKDGJLYHQZD\WR
WKHZLGHVSUHDGHPEUDFHRIP\VWLFLVPRULHQWDOLVPDQGRWKHUH[RWLFSKLORVRSKLHV+DUULVRQ
6KHOLNH&ODXGHODQGPDQ\RWKHUVWKULYHGLQDVRFLHWDOHQYLURQPHQWZKHUHFRQYHQWLRQDOYLHZV
ZHUHEHLQJWKUHDWHQHG7KLVFOLPDWHDORQJZLWK7KHRVRSK\¶VLGHDVSURYLGHG³IHUWLOHJURXQGIRU
WKRVHVHHNLQJDQHZVSLULWXDORULHQWDWLRQ´+DUULVRQ/DWHULWZLOOEHHYLGHQWWKDW&ODXGHO
DGKHUHGWRWKLVLGHDDVVKHFUHDWHGKHU6DNRXQWDOD
,QWKHDUWLFOH³)DOOLQJ$SDUW$QG+ROGLQJ7RJHWKHU´E\'RQDOG.XVSLWZHOHDUQRIWKH
GLVWLQFWLRQEHWZHHQWKHLGHDRI³UHGHPSWLYHEHDXW\´DQG&ODXGHO¶VLGHDRIUHGHPSWLYHIHUYRU
)LUVW.XVSLWWHDFKHVYLHZHUVRIWKHLPSRUWDQFHRIVKDGHVDQGVKDGRZVDQGGLVVHFWVWKH
SURSHUWLHVLQKHUHQWLQFHUWDLQVKDGHVRIFRORUDQGOLJKW+HVWDWHVWKDWIRUPDQ\ILQGHVLqFOH
DUWLVWV³:KLWHLVDGHHSDEVROXWHVLOHQFHIXOORISRVVLELOLW\%ODFNLVQRWKLQJQHVVZLWKRXW
SRVVLELOLW\DQHWHUQDOVLOHQFHZLWKRXWKRSHDQGFRUUHVSRQGVZLWKGHDWK*UD\FRUUHVSRQGVWR
LPPRELOLW\ZLWKRXWKRSHLWWHQGVWRGHVSDLUZKHQLWEHFRPHVGDUN«´$OWKRXJKWKRVH
DUWLVWVZRUNLQJZLWKSDLQWUHJDUGHGWKLVFRQWUDVWRQDFRORUVSHFWUXPDQGVFXOSWRUVVXFKDV
&ODXGHOPD\KDYHFRQVLGHUHGLWDVDFRQWUDVWEHWZHHQOLJKWDQGVKDGRZLWVXFFHHGVLQERWKFDVHV
DVDPHWKRGIRUMX[WDSRVLQJGHVSDLUDQGUHGHPSWLRQ
1H[W.XVSLWKHOSVYLHZHUVEHWWHUXQGHUVWDQGWKHVWUXFWXUHH[LVWLQJLQWKFHQWXU\DUWLVWV¶
ZRUNDQGWKHVWDELOLW\WKDWFRPHVDVDUHVXOW+HGHVFULEHVVHYHUDOZRUNVRIWKLVSHULRGZKLFK
HQFRPSDVVWZRSKDVHV³VHOIDQGZRUOGEUHDNGRZQ´DQG³VHOIDQGZRUOGUHGHPSWLRQ´DQG
H[SODLQVWKLVSURFHVVDV³WKHUHQGHULQJRIIDOOLQJWRSLHFHVDQGRIFRPLQJWRJHWKHULQJORULRXV
QHZIRUP´7KLVUHGHPSWLYHDOPRVWUHVXUUHFWLQJLGHDFDQFHUWDLQO\EHVHHQZKHQ
FRPSDULQJWKH\RXQJLPSORULQJZRPDQIURP/HGLHXHQYROpWRWKHVLQJOH\RXQJILJXUHIURP
/¶kJHP€UZKLFKHYROYHVLQWR/¶LPSORUDQWH,QWKHHDUOLHUYHUVLRQVVKHLVSRUWUD\HGDVEHLQJ
VHYHUHGIURPKHUIRXQGDWLRQDQGIDOOLQJ6SHFLILFDOO\LQ/HGLHXHQYROpVKHUHDFKHVXSDOPRVW
YHUWLFDOO\ZLWKVHHPLQJO\QRSXUSRVH:KHUHDVLQWKHODWWHUUHQGLWLRQVKHKDVLQGHHGFRPH
³WRJHWKHULQJORULRXVQHZIRUP´DV.XVSLWGHVFULEHVLW1RVKHLVQRW\HWUHGHHPHGQRUUHQGHUHG
ZKROHEXWVKHNQHHOVILUPO\DQGLQGHSHQGHQWO\DQGLVQRZUHDFKLQJKRUL]RQWDOO\RXWZDUG
WRZDUGDFRQFUHWHKRSH
,WLVLPSRUWDQWWRSRLQWRXWWKDWLQFRQWUDVWWRDUWLVWVVHHNLQJIDPHIRUWKHLUJUDQGLRVH
PDVWHUSLHFHVIRU&ODXGHOWUXHVXFFHVVZDVDFKLHYHGZKHQDSLHFHRIKHUVRXOUHPDLQHG
HPEHGGHGZLWKLQKHUVFXOSWXUH:DVVLO\.DQGLQVN\GHVFULEHGWKHIHHOLQJLQWKHIROORZLQJZD\
³,QWKHILQDODQDO\VLV«HYHU\VHULRXVZRUNUHVHPEOHVLQSRLVHWKHTXLHWSKUDVHµ,DPKHUH¶/LNH
RUGLVOLNHIRUWKHZRUNHYDSRUDWHVEXWWKHVRXQGRIWKDWSKUDVHLVHWHUQDO´/LSVH\,WLV
SUHFLVHO\WKLVHWHUQDOLW\WKDW&ODXGHOVRXJKWRXW+HUZKLVSHURI³,DPKHUH´FDQEHIHOWWKURXJK
WKHSDVVLRQDWHORYHZKLUOLQJZLWKLQ/D9DOVHWKURXJKWKHKRSHOHVVGHVSDLUHQWDQJOLQJ&ORWKRLQ
WKHFUXVKLQJSDLQHPLWWHGIURPWKHLPSORULQJZRPDQRI/¶kJHP€UDQGLQWKHUHPLQGHURIWKH
LQYLVLEOHPRWKHURI/DSHWLWHFKkWHODLQH
1H[WWKRXJKWKHPDMRULW\RIWKHUHGHPSWLYHUHOLJLRXVV\PEROLVPGLVFXVVHGWKXVIDUKDV
EHHQUHODWHGWR&DWKROLFWKHRORJ\LWLVHVVHQWLDOWKDWZHH[DPLQHRQHRI&ODXGHO¶VSLHFHVZKLFK
HPDQDWHVVHQWLPHQWVRIDGLIIHUHQW\HWHTXDOO\VDFUHGQDWXUH7KLVEULQJVXVEDFNWRWKHLGHDRI
7KHRVRSK\ZKLFKDVPHQWLRQHGHDUOLHUVHHNVWRXQGHUVWDQGWKHP\VWHULHVRIEHLQJQDWXUHDQG
'LYLQLW\DVZHOODVDLPVWRXQGHUVWDQGWKHERQGVWKDWXQLWHKXPDQLW\DQGWKHGLYLQHZRUOG
(OLDGH³7KHRVRSK\´&ODXGHO¶VPDVWHUSLHFH6DNRXQWDODFHUWDLQO\IXOILOOVWKHVHSXUSRVHVDQG
DOWKRXJKLWVURRWVFRPHIURP+LQGXWKHRORJ\'ULVNHOUHPLQGVXVWKDWWKHVSLULWXDOLW\LVHTXDOO\
SUHYDOHQW+HVWDWHG³,QVWXG\LQJ«VDFUHGPRQXPHQWVRIDOOUHOLJLRQV«WKDWZKLFKGLVWLQJXLVKHV
WKHPLVH[WHULRUFDOPDQH[SUHVVLYHVLJQIRUVWUHQJWKIRUFHSRZHUDQGDOORIWKHDWWULEXWHVRI
GLYLQLW\«WKLVH[WHULRUFDOPKDVEHHQUHJDUGHGE\DOOQDWLRQVDVFUHDWLQJDSUHGLVSRVLWLRQWRWKH
H[HUFLVHRIWKRXJKWWRWKHHOHYDWLRQRIWKHVRXODQGWRWKHDFTXLVLWLRQRINQRZOHGJHRI*RGDQG
WKLQJVGLYLQH´&ODXGHOVRXJKWWUXWKZLWKRXWUHJDUGWRZKHWKHULWFDPHWKURXJK&KULVWLDQLW\
RUDQRWKHUPHDQV0DQ\VLPLODUO\RSHQPLQGHGLGHDVKDGEHJXQWRFLUFXODWHWKURXJK)UHQFK
VRFLHW\
,Q&DUDQID¶VDQDO\VLVRI6DNRXQWDODILJKHVDLGWKDW&ODXGHOHPSOR\HGP\WKRORJLHV
LQKHUZRUNH[SUHVVO\EHFDXVHVKHGHVLUHGWRFRQYH\WKHVDFUHGDQGVXPPRQLWVSUHVHQFH
³2XUP\WKRORJLHVV\QWKHVL]HRXUYLHZVDVHPRWLRQDOMXGJPHQWVLQWRDFRKHUHQWGUDPDWLF
IUDPHZRUNRUJDQL]LQJWKHGXOOIDFWVRIWKHZRUOG«LQWRPHDQLQJIXOQHVV$QGVRLWLVWKDW
6DNRXQWDOD«UHIHUVXVWR&ODXGHO¶VHPRWLRQDOUHVSRQVHVWRRUMXGJPHQWVDERXWDQH[LVWHQFHWKDW
LVMXVWLILHGFRPSOHWHKDSS\RUKDUPRQLRXV&DUDQID
$\UDO&ODXVHGHVFULEHVWKHP\WKLFDOKLVWRU\EHKLQGWKHVFXOSWXUHEHDXWLIXOO\
7KH+LQGXOHJHQG«WHOOVWKHVWRU\RI.LQJ'XFKPDQWDZKRIHOOLQORYHZLWK6DNXQWDODD
%UDKPLQJLUODQGJDYHKHUDZHGGLQJULQJ:KHQDFXUVHZLSHGRXWWKHNLQJ¶VPHPRU\
6DNXQWDODZDVQRWUHFRJQL]HGDVKLVZLIHDQGZDVIRUFHGWRKLGHLQWKHIRUHVWZKHUHVKH
ERUHDFKLOG2QO\WKHULQJFRXOGKDYHUHVWRUHGWKHNLQJ¶VPHPRU\EXWLWKDGEHHQORVWLQ
WKHODNH<HDUVODWHUDILVKHUPDQIRXQGLWDQGWKHORYHUVZHUHUHXQLWHG&DPLOOHFKRVH
WKHPRPHQWRIUHXQLRQZKHQWKHNLQJRQKLVNQHHVZLWKKLVKHDGOLIWHGWRZDUG6DNXQWDOD
UHFHLYHVWKHJUDFHIXOZRPDQ
'HVSLWHWKHSDVVLRQRIVXFKDVFHQHWKHUHLVDQXQGHQLDEOHSXULW\LQFOXGHGDVZHOO
$\UDO&ODXVHDIILUPVWKDW³WKHHURWLFLVPRIWKHQDNHGERGLHVUHDFKLQJRXWWRHDFKRWKHULV
WUDQVFHQGHGE\WKHGHOLFDWHO\PRGHVWSRVWXUHRIWKHZRPDQZKRVHKDQGKLGHVKHUEUHDVWZKLOH
KHUKHDGUHVWVXSRQKHUKXVEDQG¶VIRUHKHDG7KHFULWLF$QGUp0LFKHODOVRDSSURSULDWHO\
FRPPHQWHGWKDWWKHVFXOSWXUHFRQYH\HG³DSURIRXQGIHHOLQJRIWHQGHUQHVVERWKFKDVWHDQG
SDVVLRQDWH´TWGLQ$\UDO&ODXVH7KLVSDVVLRQDWHFKDVWLW\ZDVQRWLFHE\3DXO&ODXGHORQ
PRUHWKDQRQHRFFDVLRQ,QFODLPLQJWKDWWKLVZRUNZDVDUHDIILUPDWLRQRIKLVVLVWHU¶VVSLULWXDOLW\
KHVWDWHG³'DQVOHJURXSHGHPDV°XUO
HVSULWHVWWRXWO
KRPPHjJHQRX[LOQ
HVWTXHGpVLUOH
YLVDJHOHYpDVSLUHpWUHLQWDYDQWTX
LOQ
RVHOHVDLVLUFHWrWUHPHUYHLOOHX[FHWWHFKDLUVDFUpHTXL
G
XQQLYHDXVXSpULHXUOXLHVWpFKXH«,OHVWLPSRVVLEOHGHYRLUULHQjODIRLVGHSOXVDUGHQWHWGH
SOXVFKDVWH´ TWGLQ$\UDO&ODXVH7KHFULWLFVRI/H)LJDURFRQILUPHGWKHVHLGHDV
SHUWDLQLQJWR&ODXGHO¶VWHFKQLTXHDQGDGGHG'DQV6DNRXQWDODGpMjHOOHGRQQHVDYHUVLRQG¶XQH
SDVVLRQLQWpULHXUHSOXVTXHSK\VLTXH«´ 0DGHOLQ
/HWXVQRZPRYHLQFORVHUWRH[DPLQHWKHPRUHILQLWHGHWDLOVRIWKLVHWKHUHDOPDVWHUSLHFH
$V&ODXGHOZRUNHGRQWKLVVFXOSWXUHLQLWVYDULRXVPHGLXPVVKHUHIXVHGKHOSDQGUDUHO\VOHSW,Q
DVQLSSHWIRXQGIURPRQHRIKHUFRUUHVSRQGHQFHVVKHVWDWHVWKDWVKHKDGEHHQFRXJKLQJDQG
VQHH]LQJIRUGD\VDVVKHZDV³SROLVVDQWDYHFUDJHOHJURXSHGHVWUXFWHXUGHPDWUDQTXLOLOLWp´ +HUH\HVZHUHZHHSLQJDQGWKUREELQJDVVKHZDVGHWHUPLQHGWRILQLVKWKLVSHDFH³GH
,QP\VLVWHU¶VJURXSWKHVSLULWXDOLVHYHU\WKLQJWKHPDQLVRQKLVNQHHVLQSXUHGHVLUHKLVIDFHOLIWHGKH
HPEUDFHVWKLVPDUYHORXVEHLQJWKLVVDFUHGIOHVKJLYHQWRKLPIURPDERYHEHIRUHKHHYHQGDUHVWRVHL]HLW«,WLV
LPSRVVLEOHWRVHHDQ\WKLQJDWWKHVDPHWLPHPRUHSDVVLRQDWHDQGPRUHFKDVWH
$OUHDG\LQ6DNRXQWDODVKHFRQYH\VKHUYHUVLRQRIDQLQWHULRUSDVVLRQUDWKHUWKDQDSK\VLFDORQH
3ROLVKLQJZLWKUDJHWKHJURXSZKLFKGHVWUR\HGP\WUDQTXLOLW\
IDoRQ«FRPPHLOIDXWFRQYLHQWjGHVDPRXUHX[SDUIDLWV´ 7DVVHW,QDQRWKHUOHWWHUWRKHU
GHDUIULHQG)ORUHQFH-HDQVVKHZURWH³-HWUDYDLOOHPDLQWHQDQWjPHVGHX[JUDQGHVILJXUHVSOXV
TXHJUDQGHXUQDWXUHHWM¶DLGHX[PRGqOHVSDUMRXUIHPPHOHPDWLQHWKRPPHOHVRLU9RXV
SRXYH]SHQVH]VLMHVXLVIDWLJXpHMHWUDYDLOOHUpJXOLqUHPHQWKHXUHVSDUMRXU«HQUHYHQDQWLO
P¶HVWLPSRVVLEOHGHWHQLUVXUPHVMDPEHV´ 5LYLqUH%HOLHYLQJILUPO\WKDWWKHVH
SHUIHFWUHXQLWHGORYHUVGHVHUYHGWKHXWPRVWGHGLFDWLRQDQGDWWHQWLRQWRGHWDLO&ODXGHODOVR
HQVXUHGWKDWHDFKPXVFOHVWUDQGRIKDLUDQGERGLO\FXUYHZDVIXOORIOLIHDQGPRYHPHQW
,IRQHH[DPLQHV6DNRXQWDOD¶VIDFHDVVKHOHDQVKHUKHDGRQKHUKXVEDQGKHUH[SUHVVLRQ
FRQYH\VDIHHOLQJRIUHGHPSWLRQIURPDQRSSUHVVLRQWKDWKDVEHHQORRPLQJXQFRQWUROODEO\RYHU
WKHLUOLYHVIRUVRORQJ+HUKLSDSSHDUVWREHEDUHO\UHVWLQJRQWKHURFNEHKLQGKHULQVLQXDWLQJ
WKDWVKHIHHOVHQWLUHO\XQJURXQGHGDQGFDQVFDUFHO\EHOLHYHLQWKHUHDOLW\RIWKLVPLUDFXORXV
PRPHQW7KHFRXSOHLVDWWKLVVDOYDWLRQDOPRPHQWOLEHUDWHGIUHHWRORYHUHQHZHGWRUHJDLQOLIH
DVLWZDVPHDQWWREH1H[WZHQRWLFHWKDWKHUH\HVDUHFORVHGDQGKHUIRUHKHDGLVUHOD[HGWKLV
IUR]HQPRPHQWLQWLPHVHHPVWREHWKHFXOPLQDWLRQRIDOOVKHKDVVRORQJGHVLUHG$VZHPRYH
WRZDUGKHUKXVEDQGKLVVWDQFHVWUHWFKHVXSZDUGWRZDUG6DNRXQWDODDQGKHUHDFKHVDURXQGKHU
ZLWKWLJKWHQHGDUPVVKRZLQJKHLQWHQGVWRQHYHUORVHKHUDJDLQ+HDEDQGRQVDOOUHVHUYHDVWKH\
HPEUDFHLQDSXUH\HWSULYDWHUDSWXUH+LVERG\LVDOVRVXEWO\SODFHGEHKLQGKHUIURQWOHJ
PDNLQJKLPVHFRQGDU\LQSURPLQHQFH6XFKDJHQWOHSRUWUD\DORIDSRZHUIXOPDOHLVDIHDWWKDW
ZRXOGKDYHEHHQTXLWHGDULQJFRQVLGHULQJWKHLQIHULRUYLHZVDQGWUHDWPHQWWRZDUGZRPHQWKDW
ZHUHVWLOOSUHVHQWLQWKHWKFHQWXU\
,QDPDQQHUZRUWK\RIWKHVHSHUIHFWORYHUV
,¶PQRZZRUNLQJRQP\WZRILJXUHVZKLFKDUHELJJHUWKDQOLIHVL]HDQG,KDYHWZRPRGHOVHDFKGD\DZRPDQLQ
WKHPRUQLQJVDQGDPDQLQWKHHYHQLQJV<RXFDQLPDJLQHKRZWLUHG,DP,UHJXODUO\ZRUNKRXUVSHUGD\«DQG
XSRQUHWXUQLQJKRPHLWLVLPSRVVLEOHIRUPHWRVWDQGRQP\OHJV
:HDOVRVHHWKHWKHPHRIUHGHPSWLRQLQWKHHOHPHQWRIHTXDOLW\SUHVHQWHGLQWKH
VFXOSWXUH7KURXJKWKHSRZHUZLWKZKLFKVKHHQGRZV6DNRXQWDOD&ODXGHOGHOLYHUVKHUIHPLQLQH
ILJXUHIURPWKHRSSUHVVLYHDQGUHVWULFWLYHERQGDJHWLPHDQGWUDGLWLRQKDYHSODFHGXSRQKHU
&ULWLFVKDYHRIWHQHQWKXVLDVWLFDOO\FRPSDUHG5RGLQ¶V7KH.LVVILJWR&ODXGHO¶V6DNRXQWDOD
\HW3DXO&ODXGHOFRXOGQRWKDYHEHHQPRUHDQJHUHGE\WKLVFRPSDULVRQ+HGHHPHGWKHODWWHUWR
EH³LPPHQVHO\VXSHULRU´DQGVWDWHG³,QWKHILUVWWKHPDQLVVRWRVSHDNVHDWHGWRGLQHDWWKH
ZRPDQ+HVLWVGRZQWREHWWHUHQMR\KHU´)XUWKHUPRUH3DXOSXEOLVKHGDQDUWLFOHLQ
/¶2FFLGHQWSUDLVLQJKLVVLVWHU¶VIHDWDQGDFFRUGLQJWRKLVUHFRUG³&DPLOOH¶V
VFXOSWXUH«ZHOFRPHVOLJKWDQGUDGLDWHVWKHLQQHUGUHDPWKDWLQVSLUHGLW´+HZKR
XQGHUVWRRGKHUEHWWHUWKDQPRVWLPPHGLDWHO\DQGXQGHQLDEO\UHFRJQL]HGWKLVVSLULW
$GGLWLRQDOO\7KH.LVVGLIIHUVIURP6DNRXQWDODLQWKDW&ODXGHOSODFHVKHUILJXUHVRQD
PRUHHTXDOSODQH&KDUOHPDJQH/D\WRQQRWHVWKLVVDPHLGHDDVVKHGHVFULEHVWKHSRVWXUH&ODXGHO
FKRRVHV6KHVD\V³>&DPLOOH¶V@GUDSHGVFXOSWXUHVVWDQGDVHPEOHPVRIDSRZHUIXOIHPLQLQH
FUHDWLYLW\DQGDPDOHIHPDOHERQGWKDWVLJQLILHVHTXDOLW\EHWZHHQWKHVH[HV/D\WRQ
)XUWKHUPRUH6DNRXQWDODLVQRWRQO\DFDUHIXOEOHQGRIWKHVHQVXDODQGWKHHPRWLRQDOLWLVDOVRD
³FDUHIXOEDODQFHRIWKHPDVFXOLQHDQGWKHIHPLQLQHHYHQWKRXJKWKHPDQLV>KXPEO\@RQKLV
NQHHVKHVXSSRUWVKLVRYHUZKHOPHGFRPSDQLRQ´$\UDO&ODXVH:HVHHWKLVDVKLVOHIWDUP
HQFLUFOHVKLVEHORYHGZKLOHKLVULJKWDUPVXSSRUWVKHUIRUVKHDSSHDUVWREHDOPRVWIDLQWLQJXQGHU
WKHIRUFHRIKHUHPRWLRQ$\UDO&ODXVH,WLVSUHFLVHO\WKHVHDWWULEXWHVZKLFKLQVWLOOLQWKH
PDVWHUSLHFH³WKHUHGHPSWLYHSRZHURIORYH´DV&DUDQIDUHIHUVWRLW
7KHFUHDWLRQDQGFRPSOHWLRQRIWKHZRUNLVDQDFWRIPLUDFXORXVUHGHPSWLRQLQLWVHOI7KLV
LVGXHWRWKHIDFWWKDWWKHFRPPLVVLRQIRUWKHILQDOPDUEOHYHUVLRQRI6DNRXQWDODZDVLQLWLDOO\
GHQLHGLQIDYRURIDIXOOVFDOHFRPPLVVLRQRIRQHRI5RGLQ¶VVHQVXDOZRUNV,WVVXFFHVVZRXOG
QRWKDYHEHHQSRVVLEOHZLWKRXWWKHDLGRIWKH&RXQWHVVRI0DLJUHWZKRDLGHGLQWKHIXQGLQJDQG
VXSSRUWRIWKHSURMHFW,QDOHWWHU&ODXGHOLQVLVWHG³&HJURXSH«QHVHUDUpHOOHPHQWILQLTXHGDQV
OHPDUEUH´ 5LYLqUH:K\WKLVGHWHUPLQDWLRQWRFDUYHWKLVSLHFHLQVWRQH",ZLOO
DGGUHVVWKLVPRUHLQWKHDQDO\VLVRI/DSHWLWHFKkWHODLQHEXWLWLVYLWDOWRXQGHUVWDQGWKDWWKLVLGHD
RIHWHUQDOL]LQJKHUVXEMHFWVLQPDUEOHZDVKHUZD\RILPPRUWDOL]LQJKHUWHVWLPRQ\RIWKHGLYLQH
,QKHU\HDUVZRUNLQJDQGUHZRUNLQJWKLVSLHFH&ODXGHODLPHGWRUHGHHPKHUVHOI
FRPSOHWHO\IURP5RGLQ¶VVKDGRZDQGFUHDWHVRPHWKLQJQHZDQGVXSHULRUWRDOORWKHUZRUNVWKDW
ZRXOGEHVKRZQLQWKHVDORQ2QHFDQQRWGHQ\WKDWVKHVXFFHHGHGLQWKLVDPELWLRQPDQ\FULWLFV
KDYHEHHQUHFRUGHGDVVD\LQJWKDWWKLVZDVWKH³PRVWH[WUDRUGLQDU\QHZZRUNLQWKHVDORQ´
$\UDO&ODXVH0DQ\VDLGLWZDVDUHPDUNDEOHDFKLHYHPHQWWKDWVXFKD\RXQJZRPDQZDV
DEOHWRFRQFHLYHDQGFUHDWHVRVXFFHVVIXOO\DJURXSRIWKLVLPSRUWDQFH´$\UDO&ODXVH
7KRXJKVRPHZHUHGHWHUPLQHGWRVHH5RGLQ¶VLQIOXHQFHPDQ\RWKHUVVDZWKHRULJLQDOLW\RIKHU
LQWHUSUHWDWLRQ1HYHUWKHOHVVGHVSLWHKHULQFUHGLEOHSOHDVXUHFRQQHFWHGZLWK6DNRXQWDOD¶V
VXFFHVV&DPLOOH&ODXGHOXQGRXEWHGO\VDZKHUVHOIUHIOHFWHGLQWKHLQQRFHQW6DNRXQWDODZKR
WUXVWHGWKHNLQJDQGZDVOHIWLQDGLIILFXOWSRVLWLRQ³/LNH6DNRXQWDOD&ODXGHOZDVIRUFHGWRKLGH
RQHDVSHFWRIKHUOLIHDQGWRKRSHWKDWVKHZRXOGHYHQWXDOO\EHUHFRJQL]HG´$\UDO&ODXVH
5HGHPSWLRQLQDQG7KURXJK/DSHWLWHFKkWHODLQH
)RU&ODXGHOLQOLIHWRRNDQHYHQPRUHLVRODWHGDQGVROLWDU\WXUQ+HUEURWKHU3DXO
KDGUHFHQWO\JRQHWR%RVWRQDQGVKHZDVOHIWDORQHLQKHUDWHOLHU%HFDXVHVKHUDUHO\KDGYLVLWRUV
VKHRIWHQZDONHGWKURXJKWKHZRUNLQJFODVVQHLJKERUKRRGRQWKHERXOHYDUGG¶,WDOLHDSDWKZKLFK
0DWKLDV0RUKDUGWVDLG³RIIHUHGVFHQHVILWWRVWLPXODWHWKHLPDJLQDWLRQRIDQDUWLVW´$\UDO
&ODXVH,Q'HFHPEHUVKHH[FLWHGO\ZURWH3DXORIKHUQHZSURVSHFWLYHSURMHFWV*OLPSVHV
RIKRSHDQGIDLWKDUHYLVLEOHLQWKHIROORZLQJOHWWHUUHYHDOLQJKHUH[FLWHPHQW
7KLVJURXS«ZLOORQO\EHUHDOO\ILQLVKHGRQFHLWLVLQPDUEOH
,KDYHPDQ\QHZLGHDVWKDWZRXOGSOHDVH\RXHQRUPRXVO\\RXZRXOGEHDEVROXWHO\
WKULOOHG7KH\DJUHHZLWK\RXUWKRXJKWV«
*UDFHV9HU\VPDOOSHRSOHDURXQGDODUJHWDEOHOLVWHQWRDSUD\HUEHIRUHDPHDO
6XQGD\V7KUHHPHQLQQHZRXWILWVSHUFKHGXSRQDYHU\KLJKFDUWOHDYHIRU0DVV
7KH6LQ$\RXQJZRPDQFURXFKHGXSRQDEHQFKFULHVKHUVXUSULVHGSDUHQWVVWDUHDWKHU
5LYLqUH
$VZLWQHVVHGKHUHQRZOLEHUDWHGIURP5RGLQ¶VLQIOXHQFH&ODXGHOLQFOXGHVHYHQPRUH
&KULVWLDQYLUWXHDQGSXULW\WKDQEHIRUH6KHDLPHGWRSURYHWKDWKHUZRUNZDVLQWHQWLRQDOO\
GLIIHUHQWWKDQKLV³6LQFH5RGLQZRUNHGRQWKHJUDQGVFDOHVKHFKRVHWRZRUNVPDOOVLQFHKH
GHDOWZLWKWKHQXGHVKHZRXOGGUHVVKHUILJXUHV+HUKHDGZDVZRUNLQJIHYHULVKO\«´$\UDO
&ODXVH7KRXJKWKLVLQWURGXFHVDQRWKHUIRUPRIUHGHPSWLRQZKLFKVKHVRXJKWGHOLYHUDQFH
IURPPDOHRSSUHVVLRQZKLFK,ZLOODGGUHVVODWHUUHGHPSWLRQLQLWVPRVWSRZHUIXOIRUPZDV
DFKLHYHGWKURXJKKHURQJRLQJFUHDWLRQRI/DSHWLWHFKkWHODLQHVHHILJXUHV
$VEULHIO\MXVWPHQWLRQHGIROORZLQJ5RGLQDQG&ODXGHO¶VILQDOVHSDUDWLRQLQ
&ODXGHOEHJDQWRVHHKHUDUWDVPRUH³DQWLWKHWLFDO´WR5RGLQ¶VDQGDVDQDUW³RIWKHXQVSRNHQRI
LQQHUVROLWXGH«RIWKHLGHDORIEHDXW\DQGWUXWK´&DUDQID,WLVWUXO\DWWKLVSRLQWWKDWVKH
EUHDNVIUHHDQGOLWWOHE\OLWWOHDFKLHYHVUHGHPSWLRQIURPWKHRSSUHVVLRQVKHKDGVXIIHUHGIRU
PRUHWKDQDGHFDGH&ODXGH'HEXVV\KLPVHOIFRQILUPHGWKLVYLVLEOHFKDQJH,QDOHWWHUWR5REHUW
*RGHWKHZURWH³,QWKHZRUNVVFXOSWHGE\&DPLOOH&ODXGHO>7KH/LWWOH0DQRU/DG\LVRQH
DPRQJVHYHUDOZKLFKDUHPHQWLRQHG@WKHUHLVIL[HGDNLQGRIEHDXW\>WKDW@KDVDSODVWLF
HORTXHQFHRIDQH[WUDRUGLQDU\SRZHUEOHQGHGZLWKDGHHSDFFHQWRILQWLPDF\DVDQHFKRRIVHFUHW
RUIDPLOLDUHPRWLRQVVSUXQJIURPDVWURQJLQWHULRUZKHUHWKH\VLQJDWPLGYRLFH´&DUDQID
7REHWWHUXQGHUVWDQGKRZWKLVWUDQVIRUPDWLRQFDPHDERXWOHWXVILUVWH[DPLQHWKHKLVWRU\
VXUURXQGLQJWKHFUHDWLRQRIWKLVPRYLQJEXVW
,Q&DPLOOH&ODXGHOZDVIRUFHGWRXQGHUJRDQXQZDQWHGDERUWLRQ7KRXJKYHU\OLWWOH
LVNQRZQRIWKHGHWDLOVVXUURXQGLQJWKLVWUDJLFHYHQWLWLVXQGHQLDEO\FOHDUWKDWWKLVH[SHULHQFH
KDGDGHYDVWDWLQJDQGODVWLQJHIIHFWRQKHUOLIH6KHZDVVKXQQHGE\WKRVHZKRKDUGO\NQHZKHU
DVZHOODVWKRVHZLWKZKRPVKHZDVFORVHVWLQSDUWLFXODUKHUEURWKHU3DXO$OHWWHUIURP
3DXO&ODXGHOWRKLVIULHQG0DULH5RPDLQ5ROODQGZKRKDGDGPLWWHGDSDVWDERUWLRQOLIWVDOO
GRXEWVUHJDUGLQJWKHPHUFLOHVVIXU\ZLWKZKLFKKHLQVHQVLWLYHO\FRQGHPQHG&ODXGHO¶VSDLQIXO
H[SHULHQFH+HVWDWHG³1RWHWKDWDSHUVRQZKRLVYHU\FORVHWRPHFRPPLWWHGWKHVDPHFULPH
DQGWKDWVKHKDVEHHQSD\LQJIRULWLQDKRXVHIRUWKHLQVDQHIRU\HDUV7RNLOODFKLOGWRNLOO
DQLPPRUWDOVRXOLWLVKRUULEOH,WLVDZIXO+RZFDQ\RXOLYHDQGEUHDWKHZLWKVXFKDFULPH
XSRQ\RXUFRQVFLHQFH«,GRQRWVSHDNWR\RXZLWKWKHLQGLJQDWLRQRID3KDULVHHEXWZLWKWKH
FRPSDVVLRQRIDEURWKHU´$\UDO&ODXVH7KRXJKKHLQFOXGHVWKLVODVWOLQHRIXQFRQYLQFLQJ
UHDVVXUDQFHLWLVHYLGHQWWKDWKHIHOWVFRUQIXOFRQWHPSWWRZDUGKLVVLVWHU&ODXGHOZDVQRGRXEW
ZRXQGHGE\VXFKFRQGHPQDWLRQIURPDEURWKHUVKHKHOGLQWKHKLJKHVWHVWHHP
7KHFRPELQDWLRQRIKXPLOLDWLRQVRUURZDQGUHPRUVH«ZHLJKHGKHDYLO\XSRQKHUDQG
WRUPHQWHGKHUERG\DQGPLQG,QDWURXEOLQJOHWWHUWR5RGLQRQ-XQH&ODXGHODOOXGHGWR
WKLVUHVXOWLQJEXUGHQ6KHVDLG³«$VIRUP\KHDOWK,DPQRWIHHOLQJDQ\EHWWHUEHFDXVH,
FDQQRWVWD\LQEHGKDYLQJFRQVWDQWFDXVHIRUZDONLQJ«0DGHPRLVHOOH9DLVVLHUFDPHWRVHUYHPH
DQG>VSRNH@FRQFHUQLQJPHDW,VOHWWH7KH\VD\,OHDYHDWQLJKWE\WKHZLQGRZRIP\WRZHU
KDQJLQJIURPDUHGXPEUHOODZLWKZKLFK,VHWILUHWRWKHIRUHVW´$\UDO&ODXVH7KRXJK
WLPH¶VP\VWHU\FRQFHDOVZKDWUHDOO\KDSSHQHGLWLVSUREDEOHWKDWDIWHUWKHDERUWLRQ&ODXGHO³PD\
KDYHXQFRQVFLRXVO\YLHZHGKHUVHOIDVDZLWFKGHVWUR\LQJOLIH«´$\UDO&ODXVH
7KXVDVSDUWRIKHUUHFRYHU\VKHEHJDQWRVFXOSW/DSHWLWHFKkWHODLQHDQGSXWDOOKHU
HQHUJLHVLQWRWKLVSLHFHZKLFKZRXOGXOWLPDWHO\HYRNHDSRZHUIXOPHDVXUHRIKHDOLQJZLWKLQKHU
5HFRUGRFFDVLRQDOO\VWDWHVWKDWWKHVXEMHFWRIWKLVEXVWLVWKHVL[\HDUROGJUDQGGDXJKWHURI
0DGDPH&RXUFHOOHVRZQHURIDFDVWOHDW,VOHWWHZKHUH&ODXGHOVSHQWVHYHUDOPRQWKVSUHVXPDEO\
KHDOLQJIURPWKHDERUWLRQ,QGHHG&DPLOOHGLGWDNHWKHWLPHWRWHDFKWKHJLUOGUDZLQJDQGZRYH
ZKDW/H)LJDURGHVFULEHVDV³«XQHUHODWLRQWHQGUHDYHFFHWWHHQIDQWGRQWRQLPDJLQHTX¶HOOH
FRPSHQVHXQHSHUWHPDWHUQHOOH´ :KLFKOHDGVWRWKHPRUHFRPPRQEHOLHIWKDW&ODXGHO
FUHDWHGWKLVVZHHWIDFHDVVKHLPDJLQHGKHURZQFKLOGZRXOGKDYHUHVHPEOHG\HDUVODWHU6KH
FDUHIXOO\DQGWHQGHUO\GHGLFDWHG\HDUVWRVFXOSWLQJPXOWLSOHYHUVLRQVRIWKLVOLWWOHJLUODVLIVKH
EHOLHYHGWKDWWKLVSRLJQDQWDFWRIUHGHPSWLRQZDVLQDVHQVHEULQJLQJEDFNWKHOLIHWKDWKDGEHHQ
ORVW
3URRIRIWKLVUHGHPSWLYHFRQYLFWLRQFDQEHVHHQLQWKHH[FHSWLRQDOIRUPDOHOHPHQWVRIWKH
SLHFHV)LUVWWKHFKLOG¶VFKLQLVWLOWHGXSZDUGDVVKHORRNVZLWKZLGHVHDUFKLQJH\HVWKDWVHHP
KRSHIXO\HWXQFHUWDLQ,Q$QJHOR&DUDQID¶VDQDO\VLVRIWKHJLUO¶VH\HVKHVWDWHV³+HUH«WKH
ILJXUHLVFRPSOHWHO\DWWHQWLYHDVWKRXJKQRWKLQJGLVWXUEVWKHVHUHQLW\RIKHULQQHUYLVLRQDYLVLRQ
WKDWWDNHVKHUWRWKHUHDOPRIWKHHWHUQDO«$OOLVZRQGHUDURXQGKHUDOOLVFRQWHPSODWLRQ«DOOLV
HQUDSWXUHPHQWEHIRUHWKHH\HVRIWKLVGHOLJKWIXOFKLOG«´&DUDQID1H[WKHUH[SUHVVLRQLV
WLPLGO\YLEUDQWDQGKROGVGHOLFDWH\RXWKIXOYLJRU5RJHU0DU[QRWHGLQ/D5HYXH
(QF\FORSpGLTXHWKDW³0DGHPRLVHOOH&ODXGHO¶VEXVWLVHQGRZHGZLWKWKHLQWHQVHDQGLQVSLUHG
UDGLDQFHRI\RXQJOLIH´)XUWKHUPRUH$\UDO&ODXVHVWDWHGWKDWWKHSLHFH³GRHVQRWFRQYH\WKH
H[SHFWHGFKDUDFWHULVWLFVRILQQRFHQFH´ZHZRXOGLPDJLQH³,QVWHDGZLWKWKHLQWHQVLW\RIWKH
FKLOG¶VH[SUHVVLRQUDGLDWHVDVXUSULVLQJEOHQGRINQRZOHGJHDQGIUDJLOLW\´$\UDO&ODXVH
3HUKDSV&ODXGHOHQGHDYRUHGWRLQWHJUDWHKHURZQIHHOLQJVRIIUDJLOLW\ZLWKLQWKLVXQXVXDOO\
$WHQGHUUHODWLRQVKLSZLWKWKLVFKLOGIURPZKLFKVKHFRPSHQVDWHVIRUDPDWHUQDOORVV
LQWULFDWHLPDJHRI\RXWK&RQFHUQLQJWKHVPRRWKVWRQH&DUDQIDEHDXWLIXOO\GHVFULEHV³«HYHU\
SRUHRIKHUVRIWDQGWHQGHUVNLQUDGLDWHVZLWKDQLQQHULPSXOVHRIWKHKHDUW´/H)LJDUR
SXEOLVKHGLQVLQFHUHDJUHHPHQW³&DPLOOHUHVWLWXHGDQVVHVVFXOSWXUHVGHVpWDWVG¶kPHLQWLPHVHW
FHODSHUVRQQHG¶DXWUHQHOHUHQGDYHFDXWDQWGHWDOHQW´ $GGLWLRQDOO\0DXULFH+DPHO
ZURWHLQ/D5HYXHGH3DULV³+RZWRXFKLQJDQGEHDXWLIXOVKHLV7KHVFXOSWLQJRIWKHPDUEOHLV
ERWKVZHHSLQJDQGWLJKW2QHIHHOVWKHKDQGRIWKHDUWLVWDQGQRWMXVWWKHVFLVVRUVRIWKH
SUDWLFLHQ,WLVDUHDOPDVWHUSLHFH´TWGLQ$\UDO&ODXVH&OHDUO\&ODXGHOFRQWLQXHGWR
VDWLVI\WKHHPRWLRQDOGHVLUHVRIWKHSXEOLFZLWKHDFKQHZDGDSWDWLRQRIWKLVILJXUH
0DWKLDV0RUKDUGWHGLWRURI/H7HPSVZHQWVRIDUDVWRFRPSDUH&ODXGHO¶VEXVWZLWK
YDULRXVPDVWHUSLHFHVRI)ORUHQWLQHDUWLVWV+HVDLGWKDWOLNHWKH)ORUHQWLQHV³&ODXGHOVKRZVD
JUHDWFDUHIRUWKHIRUPZKLFKVKHWUDQVODWHVLQWHUSUHWVDQGSHQHWUDWHVZLWKDVPXFKLQWHOOLJHQFH
DVZLWKQREOHVHQVH«>+HUZRUN@LVXQLILHG«ZHOOEDODQFHG«DQGSHUIHFWO\VHUHQH,WLVWKLV
LQWLPDWHDOOLDQFHZLWKDQGSDUWLFLSDWLRQLQWKHSXUHRUWHQGHUIHHOLQJVRIWKHKHDUWWKDW&DPLOOH
&ODXGHO¶VDUWVKDUHVLQWKHVSLULWDQGVW\OHRIWKH)ORUHQWLQHV´&DUDQID&DUDQIDDGGVWKDWVKH
UHQGHUVHYHU\WKLQJZLWKWUXWKIXOQHVVIDLWKIXOQHVVKDUPRQ\DVGRWKH)ORUHQWLQHV
&RQWLQXLQJWRH[DPLQHWKHSK\VLFDOGHWDLOVRQHLQVWDQWO\UHPDUNVWKHGLIIHUHQFHLQWKH
PXVFOHGHYHORSPHQWDQGKDLUVW\OHVDPRQJWKHYDULRXVYHUVLRQV,WLVQRWXQWLOWKDW&ODXGHO
VROLGLILHGLQEURQ]HWKHOLIHOLNHQDWXUHVKHKRSHGWRFDSWXUH2QHZLOOLQVWDQWO\QRWLFHWKH
UHDOLVWLFPXVFOHVVWUDLQLQJLQWKHQHFNDQGVKRXOGHUVDVZHOODVWKHQXDQFHGIDFLDOH[SUHVVLRQV
EHJLQQLQJWRWDNHIRUP,QUHIHUHQFHWRWKHYHUVLRQWKHFXUDWRUVRIWKH3LVFLQHGH5RXEDL[
PXVHXPQHDU/LOOH)UDQFHFRPPHQWHG³/HWUDLWHPHQWGHODFKHYHOXUHFRQVWUXLWHFRPPHXQH
FDUDSDFHGHYROXWHVQRXHXVHVGRQWODIUDJLOLWpH[WUrPHHVWpYLGHPPHQWPHQDFpHjFKDTXH
,QKHUVFXOSWXUHV&DPLOOHUHFUHDWHVWKHVWDWHVRILQWLPDWHVRXOVDQGWKDWQRRQHHOVHGRHVZLWKDVPXFKWDOHQW
QRXYHOOHDWWDTXHGXFLVHDXGDQVODPDWLqUH´ 3LFDQGHW$\UDO&ODXVHDGGHGWKDWRQHFDQVHH
KRZWKLVEXVWZDVVXFKDWHFKQLFDOIHDWLQWKDWWKHFKLOG¶VKDLUZDVUHQGHUHG³HQWLUHO\ZLWKRSHQ
VWUDQGVDQGWKHEXVWLWVHOIKROORZHGRXWWROHWWKHOLJKWSOD\RQWKHIDFH>DQGKDLU@DQGLQFUHDVHLWV
P\VWHU\´7KH5RXEDL[FXUDWRUVDOVRDGGHGWKDWQRWRQO\ZDVWKLVGHOLFDWHKHDGLQWULFDWHO\
FRLIIHGWKHOXPLQRVLW\IURPHDFKDQJOHUHQGHUHGLWVWXQQLQJ7KHLUIROORZLQJZRUGVGHVFULEH
KRZVXFKVNLOOHGWHFKQLTXHOHGWRVXFKDUDGLDQWUHVXOW³>/DSHWLWHFKkWHODLQHDpWp@«FUHXVp
SRXUGHYHQLUXQSLqJHjOXPLqUHHWDLQVLLOOXPLQHUOHPDUEUHSROLVDQVGRXWHDYHFXQRVGH
PRXWRQVHORQOHSURFpGpKDELWXHOGH&ODXGHOTXLSHQVDLWOHSDUWDJHUDYHFOHVVFXOSWXUHVGH0LFKHO
$QJH´ 3LFDQGHW&ODXGHOZDVGHWHUPLQHGWRXVHRQO\WKHPRVWUHILQHGWHFKQLTXHVDVVKH
FKLVHOHGDZD\DWWKHGHOLFDWHOLIHVKHHQGHDYRUHGWRUHYLYH
,QWHQVHHIIRUWLVFOHDUO\YLVLEOHLQWKHFDUHIXOFRQWRXUVRIWKHPDUEOH7KHRSHQQHVVWKDW
&ODXGHODFKLHYHGLQWKHVKDSLQJRIKHUEXVWLVHTXLYDOHQWWRWKHDOOHJRULFDORSHQQHVVZLWKZKLFK
WKHFKLOGYLHZV³WKHHWHUQDOP\VWHULHV´DV&DUDQIDWHUPVLW7KHFKRLFHWKDW&ODXGHOPDGH
WRXVHPDUEOHUDWKHUWKDQHDUWKIRUWKLVSDUWLFXODUSLHFHVKRZVWKDWGHVSLWHWKHFKDOOHQJHVRIWKH
PHGLXPVKHGHVLUHGDERYHDOOHOVHWRHWHUQDOL]HKHUVXEMHFW7KHIDFWWKDWVKHILQLVKHGVHYHUDO
YHUVLRQVRIWKLVSLHFHHDFKZLWKVOLJKWQXDQFHVRIGLIIHUHQFHDOVRDGGVFUHGHQFHWRKHUDWWHPSWDW
UHGHHPLQJDOLIHVRVDGO\ORVW7KHOLWWOHJLUO¶VVOHQGHUQHFNGHOLFDWHFROODUERQHDQGVOLJKWO\
VOXPSHG\HWSHUIHFWO\URXQGHGVKRXOGHUVDUHDOOIHDWXUHVZKLFKDGGDGLPHQVLRQRIIHPLQLQLW\WR
&ODXGHO¶VVW\OHWKDW5RGLQGRHVQRWHQJDJH$\UDO&ODXVHDJUHHGWKDWWKHVHGLVWLQFWLYHHOHPHQWV
VLJQLILHG³OHGpWDFKHPHQWGH5RGLQGDQVOHTXHOV¶HQJDJHDORUV&ODXGHO´ 7KHKHDGRIKDLULVFRQVWUXFWHGOLNHDVKHOORINQRWW\FXUOVLQZKLFKWKHH[WUHPHIUDJLOLW\LVHYLGHQWO\WKUHDWHQHG
ZLWKHDFKQHZDWWDFNRIWKHFKLVHORQWKHVXEMHFW
7KH/LWWOH/DG\ZDVFRQVWUXFWHGWREHFRPHDWUDSIRUWKHOLJKWDQGWKXVLOOXPLQDWHWKHSROLVKHGPDUEOHLWZDVPRVW
OLNHO\GRQHZLWKDVKHHS¶VERQH7KLVZDVWKHXVXDOSURFHGXUHWKDW&DPLOOHDVZHOODV0LFKHODQJHOR¶VVFXOSWRUV
XVHG
7KHGHWDFKPHQWIURP5RGLQLQZKLFK&DPLOOHHQJDJHVKHUVHOI
$QJHOR&DUDQIDLQKLVDQDO\VLVFRPSDUHV/DSHWLWHFKkWHODLQHWRRQHRI&ODXGHO¶VHDUOLHU
EXVWV&KDUOHV/KHUPLWWHDVD&KLOGILJDQGVWDWHVWKDWERWKRIWKHVHVFXOSWXUHVKDYH
)ORUHQWLQHWUDFHVDQGPRUHLPSRUWDQWO\VKDUHDFRPPRQVSLULWXDOWKHPH+LVGHVFULSWLRQRIWKH
)ORUHQWLQHWUDFHVVKDUHGE\ERWKFKLOGILJXUHVLV\HWDJDLQDQRWKHUWHVWDPHQWWRWKHHOHPHQWRI
VSLULWXDOLW\&ODXGHOLQFRUSRUDWHGLQWRHYHU\SLHFHVKHFUHDWHG+HGHVFULEHGWKDWOLNH/DSHWLWH
FKkWHODLQH&KDUOHV/KHUPLWWHWRR³LVFRPSOHWHO\DEVRUEHGE\WKHSUHVHQFHRIVRPHWKLQJ
LQGHILQDEOHZKLFKWRXFKHVKLPZLWKDQDLURIVLOHQFHP\VWHU\DQGVDGQHVV+H
LV«ZDLWLQJ«ZLWKVXFKIDLWKWKDWKLVH[LVWHQFHVHHPVLQGHHGHWHUQDO+LVIDFHYLEUDWHVZLWK
WHQGHUQHVVVZHHWQHVVFDOPQHVVDQGPHODQFKRO\7KHILQLVKHGZRUNLVKLJKO\SROLVKHGDQGLW
H[KLELWVD«OLJKWQHVVDQGDKDUPRQ\WKDWDUHPDWFKHGRQO\E\WKHZRUNVRIWKH)ORUHQWLQH
JROGVPLWKV+HUHOLJKWDQGVKDGRZHQGRZVWKHZRUNZLWKDJUDFHRIVHQVHDWUDQVFHQGHQFHDV
WKRXJKWKHFKLOGLVGLYLQHO\LQVSLUHG´&DUDQID7KHUHSOLFDWLRQRIWKHVHGLYLQHTXDOLWLHVLQ
&ODXGHO¶VZRUNLVHYLGHQFHWKDWKHUTXHVWIRUUHGHPSWLRQEHJDQHYHQEHIRUHKHUILQDOL]HGUXSWXUH
ZLWK5RGLQ
&DUDQIDODWHUJRHVRQWRH[SODLQWKDWERWK/DSHWLWHFKkWHODLQHDQG&KDUOHV/KHUPLWWH
VKDUHWKHWKHPHRI³WKHPLUDFOHRIH[LVWHQFH´+HH[SODLQVWKDWLQERWKFKLOGUHQ¶VH\HVDV
WKH\JODQFHKHDYHQZDUGWKHUHLVD³UDGLDQF\WKDWLQGLFDWHVWKHLUYLVLRQRIWKHLQDFFHVVLEOHZKLFK
ILOOV>WKHYLHZHU@ZLWKDZH´$VHDFKFKLOGORRNVZLWKIHUYRU,HFKR0DWKLDV0RUKDUGWLQ
DIILUPLQJWKDWHDFK³VPDOODPELJXRXVIDFHLVVWUDQJHO\LQWHOOLJHQW´&DUDQID
$VZHVWURYHWRXQGHUVWDQGWKHPXOWLGLPHQVLRQDOQDWXUHRI/¶LPSORUDQWHOHWXVGRWKH
VDPHZKLOHH[DPLQLQJ/DSHWLWHFKkWHODLQH/LPLWLQJRQHVHOIWRDVXSHUILFLDOLQWHUSUHWDWLRQRIWKH
SLHFHWKHVXEMHFWZDVVLPSO\DOLWWOHJLUOZLWKFKDUPLQJIHDWXUHV&KLOGUHQDWWKHWXUQRIWKLV
FHQWXU\ZHUHQRWRIWHQSHUPLWWHGLQDGXOWVRFLHW\7KXVWKHIRFXVJLYHQE\DSUHVWLJLRXVDUWLVWDV
ZHOODVKHUGHGLFDWLRQRISUHFLRXVPDWHULDOVWRDVXEMHFWZKRZDVLQLWLDOO\QRWHYHQ
FRPPLVVLRQHGZRXOGKDYHEHHQDVWRXQGLQJ
+RZHYHULIRQHORRNVGHHSHULQWRWKHDOOHJRULFDOQDWXUHRIWKHSLHFHWKHDQDO\VLVSUHVHQWV
DVOLJKWFKDOOHQJHVHHLQJDV&ODXGHOGRHVQRWHPSOR\DUHFRJQL]DEOHP\WKLFDOILJXUHDVVKHGLG
ZLWK&ORWKR<HWRQHFRQFOXVLRQFDQEHGUDZQZKLFKRULJLQDWHVIURPWKHWLWOHRIWKH6DORQ
YHUVLRQ-HDQQHHQIDQWILJRU-RDQDVD&KLOG,WLVVDLGWKDWVKHFKRVHWKLVQDPHIRUWKLV
PDUEOHFRS\LQKRQRURI-RDQRI$UF7KXVWKHUHSXWDEOHDSSHOODWLRQLQVWLOOHGDQHOHPHQWRI
KHURLVPWKDWWKHFKLOGZRXOGKDYHRWKHUZLVHODFNHG&ODXGHO¶VGHFLVLRQWRFRQQHFWKHUORVWFKLOG
WRWKHVRXORIWKHZRPDQZKRUHGHHPHG)UDQFHZDVDSRZHUIXORQH7KLVDVVRFLDWLRQLQYLWHG
YLHZHUVWRXQLWHWKLVLQQRFHQWIDFHZLWKTXDOLWLHVRIDZRPDQZKRZDVKRQRUDEOHYLUWXRXVDQG
GLYLQHO\JXLGHGWKURXJKRXWKHUOLIH)XUWKHUPRUHLWLVSUREDEOHWKDWPDQ\ZRXOGKDYHREVHUYHG
WKHVLPLODULWLHVEHWZHHQ&ODXGHO¶VVFXOSWXUHDQGRWKHUUHQGLWLRQVRI-RDQRI$UFGRQHDURXQGWKH
VDPHWLPHSHULRG)RUH[DPSOHLQ-XOHV%DVWLHQ/HSDJHV¶-RDQRI$UFILJWKH\RXQJ
ZRPDQORRNVKHDYHQZDUGZLWKLQTXLVLWLYHH\HVKRSLQJIRUDQVZHUVDQGZDLWLQJIRULQVSLUDWLRQ
$QHDUOLHUEXWHTXDOO\SRLJQDQWUHQGLWLRQLVWKDWRI-RKQ(YHUHWW0LOODLV¶-RDQRI$UFFRPSOHWHG
LQILJ,WWRRGHSLFWVD\RXQJJLUOZLWKDJODQFHDNLQWR&ODXGHO¶V-HDQQHHQIDQWLQ
ZKLFKKHUH\HVZLGHQHGDQGXSWXUQHGJD]HSDWLHQWO\\HWKRSHIXOO\WRZDUGKHDYHQ
8QIRUWXQDWHO\WKHUHDUHQRUHFRUGVZKLFKH[SODLQZK\WKHVXEVHTXHQWFRSLHVRI/DSHWLWH
FKDWHODLQHGLGQRWLQFOXGHWKHVDPHVWLUULQJWLWOH
7KRXJKWRWKH)UHQFKSXEOLFHOHPHQWVRIWKHSLHFHZRXOGKDYHFOHDUO\VLJQLILHG
VSLULWXDOLW\VXFKDVWKHFKLOG¶VLQTXLVLWLYHVWDUHVHDUFKLQJIRUGHHSHUPHDQLQJRUKHUKHDYHQZDUG
JODQFHLQYLWLQJGLYLQHSDUWLFLSDWLRQLQWKLVHUDLWZDVQRWW\SLFDOIRUFKLOGUHQWREHLQFOXGHGLQ
VFXOSWXUHZLWKWKHUROHRIFRQYH\LQJVXFKSRLJQDQWWKHPHV$VFRQILUPDWLRQRQHQHHGRQO\YLHZ
5RGLQ¶VUHYHUHGSLHFH8JROLQRDQGKLV&KLOGUHQILJLQZKLFK8JROLQRLVLQWKH
SURFHVVRIHDWLQJWKHFRUSVHVRIKLVFKLOGUHQDIWHUWKH\KDYHGLHGE\VWDUYDWLRQ7KXV&ODXGHO¶V
XVHRIDFKLOGWRFRQYH\VXFKDSRZHUIXOVSLULWXDOWKHPHDVUHGHPSWLRQZDVUHYROXWLRQDU\
)LQDOO\LWLVLQH[DPLQLQJWKHHWKHUHDOLQWULQVLFPHDQLQJHPEHGGHGZLWKLQWKHVFXOSWXUH
WKDWZHILQGUHGHPSWLRQSHUVRQLILHG,QVWHDGRIV\PEROVZHQRZVHHV\PEROLFDOYDOXHV7DNLQJ
LQWRDFFRXQWWKHWUDJLFRULJLQRI/DSHWLWHFKkWHODLQH¶VFUHDWLRQZHFDQQRZVHHFOHDUO\KRZWKH
FRQWLQXDOVFXOSWLQJDQGUHVFXOSWLQJRIWKHEXVWZDVDSHUIRUPHGDVPHDVXUHRISHQDQFH
UHVXUUHFWLRQDQGVHOIKHDOLQJRQWKHSDUWRIWKHFUHDWRU,QRUGHUWREHWWHUXQGHUVWDQGZKDWDUW
KLVWRULDQVUHIHUWRDVWKH³V\PEROLFYDOXH´RIWKHVFXOSWXUHOHWXVDVVHVVWKHUHVSRQVHVDQG
YLFWRULHVZKLFKUHVXOWHGIURPVKDULQJWKLVSLHFHZLWKWKHSXEOLF
7REHJLQWKHVRODFHVKHIRXQGZKLOHFUHDWLQJWKHVHPXOWLSOHYHUVLRQVLVHYLGHQWHYHQ
EHWZHHQWKHOLPLWHGOLQHVRIKHUOHWWHUVWR5RGLQ,Q-XQHRIDVWKHLUUHODWLRQVKLSZDV
WXPXOWXRXVO\UHDFKLQJLWVHQGVKHZURWH³0RQVLHXU5RGLQ1HYHQH]SDVLFL«'XUHVWHMHYDLV
PLHX[PHUFL«-HUHYLHQGUDLO¶DQQpHSURFKDLQH´ 5LYLqUH6KHQRORQJHUQHHGHGKLP
WRGLVWUDFWKHUIURPKHUSDLQVKHKDGIRXQGDQRXWOHWDQGZDVHQUDSWXUHGLQLWVSRVVLELOLWLHV)RU
WKHILUVWWLPHLQKHUOLIHVKHUHFHLYHGWKHUHFRJQLWLRQVKHGHVHUYHGZLWKRXWVWDQGLQJLQWKH
VKDGRZRI5RGLQ³(XJHQH%ORWµRUJDQLVDGHX[H[SRVLWLRQVSHUVRQQHOOHVSRXU&DPLOOH&ODXGHO
HQHW,OSUpVHQWD«XQH3HWLWH&KkWHODLQHHQPDUEUH¶´ 5LYLqUH
)XUWKHUPRUH$QWRLQH%RXUGHOOHDEULOOLDQWVFXOSWRUZKRLQEHFDPH5RGLQ¶V
DVVLVWDQWDGPLUHG/DSHWLWHFKkWHODLQHDQGLQTXLUHGZKHWKHULWZDVSRVVLEOHWRKDYHDUHSOLFD
VFXOSWHGIRUKLVIULHQG+HQUL)RQWDLQH¶VFROOHFWLRQ&ODXGHOVWLSXODWHGWKDWLWZRXOGWDNHKHUWKUHH
PRQWKVWRSURGXFHDQRWKHUYHUVLRQLQPDUEOHEXWZDVWKULOOHGWRKDYHWKHUHTXHVW8SRQILUVW
0U5RGLQGRQRWFRPHKHUH«EHVLGHV,¶PGRLQJEHWWHUWKDQN\RX,ZLOOUHWXUQKHUHQH[W\HDU
«RUJDQL]HGWZRSHUVRQDOH[SRVLWLRQVIRU&DPLOOH&ODXGHOLQDQG+HSUHVHQWHG«7KH/LWWOH0DQRU
/DG\LQPDUEOH
KHDULQJRIWKHUHTXHVWVKHUHVSRQGHGLPPHGLDWHO\³-HVXLVWUqVIODWWpHGHO¶DGPLUDWLRQTXHYRXV
WpPRLJQH]SRXUPHV°XYUHVOHVXIIUDJHG¶XQDUWLVWHFRPPHYRXVHVWWUqVSUpFLHX[SRXUPRL´ 5LYLqUH,QDVHFRQGOHWWHUDIWHUWKHSULFHKDGEHHQDJUHHGXSRQDQG)RQWDLQHKDG
FRQILUPHGKLVFRPPLVVLRQ&ODXGHOZDVDPD]HGWKDWWKHPHQ¶VLGHDKDGFRPHWRIUXLWLRQ
$SSUHFLDWLRQFRPLQJIURPERWK%RXUGHOOHDQG)RQWDLQHPHDQWMXVWLILFDWLRQLQ&ODXGHO¶VH\HV
+HUMR\ZDVQRWURRWHGLQPHUHUHFRJQLWLRQDQGPRQHWDU\VXFFHVVLWZDVPXFKPRUHWKDQ
WKDW6KHIHOWYLQGLFDWHGWKDWERWKDQDUWLVWRIVXFKKLJKFDOLEHUDQGDFKDQFHHQWKXVLDVWVDZWKH
GHSWKRIKHUUHQGLWLRQDQGXQGHUVWRRGDVVKHGLGWKDWWKLVOLWWOHJLUO¶VVRXOZDVGHVWLQHGWREH
HWHUQDOL]HGLQPDUEOH$QRWKHUFKDQFHWRDWWDLQUHGHPSWLRQKHUVHOIDQGWKLVOLIHORVWZDVPRUH
WKDQVKHFRXOGKDYHKRSHGIRU+HUZRUGVLQWKHIROORZLQJOHWWHUH[XGHWKHKRSHDQGVDOYDWLRQ
VKHKDGVRORQJEHHQVHHNLQJ
0RQVLHXU%RXUGHOOH
9RXVPHFDXVH]XQHJUDQGHMRLHHQPHGLVDQWTXHYRXVrWHVSDUYHQXjPHIDLUH
FRPPDQGHUPRQSHWLWEXVWHHQPDUEUHjXQSUL[SOXVpOHYpTXHMHQHSHQVDLV-HYDLVPH
PHWWUHDXWUDYDLOWRXWGHVXLWHHWYRXVPHUHQGH]XQSHXGHFRXUDJHTXLFRPPHQoDLWjPH
PDQTXHU-¶HQVXLVWUqVWRXFKpHYHQDQWG¶XQDUWLVWHWHOTXHYRXVHWO¶DGPLUDWLRQVSRQWDQpH
HVWXQHFKRVHUDUHHWSUpFLHXVH5HFHYH]DYHFPHVUHPHUFLHPHQWVO¶H[SUHVVLRQGHPHV
VHQWLPHQWVGpYRXpV
&DPLOOH&ODXGHO ³,DPYHU\IODWWHUHGDWWKHDGPLUDWLRQWKDW\RXDWWHVWWRKDYHIRUP\ZRUNWKHDSSURYDOIURPDQDUWLVWOLNH\RXLV
YHU\SUHFLRXVWRPH´
0U%RXUGHOOH<RXJLYHPHFDXVHIRUVXFKJUHDWMR\LQWHOOLQJPHWKDW\RXKDYHVXFFHHGHGLQDFTXLULQJD
FRPPLVVLRQIRUP\OLWWOHEXVWLQPDUEOHDWDSULFHPXFKKLJKHUWKDQ,KDGH[SHFWHG,DPJRLQJWRSXWP\VHOIWR
ZRUNLPPHGLDWHO\\RXJLYHPHWKHFRXUDJHWKDWZDV,ZDVVWDUWLQJWRODFN,DPYHU\WRXFKHGSUDLVHFRPLQJIURP
DQDUWLVWVXFKDV\RXUVHOIDVZHOODVVSRQWDQHRXVDGPLUDWLRQLVDUDUHDQGSUHFLRXVWKLQJ3OHDVHUHFHLYHP\
JUDWLWXGHDQGWKHH[SUHVVLRQRIP\GHYRWHGVHQWLPHQWV&DPLOOH&ODXGHO
8QIRUWXQDWHO\QRWHYHU\UHVSRQVHIURPWKHSXEOLFFDPHLQWKHIRUPRIWKHRYHUZKHOPLQJ
DSSUHFLDWLRQVKHVRGHVLUHGDQGGHVHUYHG,QEXR\HGXSE\WKHUHFHQWSUDLVHDQG
HPDQFLSDWLRQVKHKDGUHFHLYHGVKHZURWHWKHIROORZLQJOHWWHUWRWKHPLQLVWHURIWKHDUWV
0RQVLHXUOH0LQLVWUH
-¶DLO¶KRQQHXUG¶DSSHOHUYRWUHELHQYHLOODQWHDWWHQWLRQVXUXQSHWLWEXVWHG¶HQIDQWHQEURQ]H
TXHM¶DLH[SRVpDX6DORQGX&KDPSGH0DUVRLOILJXUHVRXVOHQÛHWGHOHSURSRVHU
SRXUrWUHDFKHWpSDUO¶(WDW6LM¶HQFURLVOHVHQFRXUDJHPHQWVTXHM¶DLUHoXVDXVXMHWGH
FHWWH°XYUHMHQHSHQVHSDVPHPRQWUHUWURSWpPpUDLUHGDQVPDVROOLFLWDWLRQ-HVXLVDYHF
OHSOXVSURIRQGUHVSHFWPRQVLHXUOH0LQLVWUHYRWUHWUqVKXPEOHHWGpYRXpHVHUYDQWH
&DPLOOH&ODXGHO (QPDUJHDFFXVpUpFHSWLRQOHDYULO5HIXVG¶DFKDWOHMXLOOHW5LYLqUH
,QWKHUHFHQWO\SXEOLVKHGFRPSLODWLRQRI&ODXGHO¶VFRUUHVSRQGHQFHVDORQJZLWKKLVWRULFDO
DQQRWDWLRQVZHOHDUQWKDWDIWHUWKH0LQLVWU\¶VXQUHDVRQDEOHUHIXVDOWRSXUFKDVHWKLVEURQ]H
YHUVLRQRI/DSHWLWHFKkWHODLQH&ODXGHOVROGWKHSLHFHWR%DURQ$OSKRQVHGH5RWKVFKLOGZKR
WKHQRIIHUHGLWDVDJLIWWRWKH-RVHSK'HQDLVGH%HDXIRUWHQ9DOpH0XVHXPLQ5LYLqUH
*LYHQWKDWVKHGHVLUHGWKHPHPRU\RIKHUOLWWOHJLUOWROLYHRQVHOOLQJWKHSLHFHLQWR
KDQGVZKLFKZRXOGEHIDUIURPWKHH\HVRIWKH3DULVLDQSXEOLFPXVWKDYHEHHQGHYDVWDWLQJ%XW
ZLWKRXWFRQVLGHUDEOHILQDQFLDOVXSSRUWIURPKHUIDPLO\5RGLQRUIURPWKHPLQLVWU\&ODXGHOZDV
XUJHQWO\LQQHHGRIPRQH\DQGOHIWZLWKQRRWKHUFKRLFH,WPXVWKDYHEHHQLQIXULDWLQJIRUKHUWR
VWUXJJOHVRLQWHQVHO\WRFRQYLQFHWKHSXEOLFRI/DSHWLWHFKkWHODLQH¶VSUHFLRXVZRUWKRQO\WREH
UHSHDWHGO\LJQRUHGDQGUHMHFWHG
0U0LQLVWHU,KDYHWKHKRQRUWRFDOO\RXUEHQHYROHQWDWWHQWLRQWRDOLWWOHEXVWRIDFKLOGLQEURQ]HWKDW,H[KLELWHG
DWWKH6DORQRIWKH&KDPSGH0DUVZKHUHLWDSSHDUHGXQGHUWKHQXPEHUDQG,SURSRVHLWWREHSXUFKDVHGE\WKH
6WDWH,I,EHOLHYHLQWKHHQFRXUDJHPHQWVWKDW,KDYHUHFHLYHGFRQFHUQLQJWKLVZRUN,GRQRWWKLQN,DPDFWLQJ
IRROLVKO\LQWKLVUHTXHVW,DPZLWKWKHGHHSHVWUHVSHFW0U0LQLVWHU\RXUYHU\KXPEOHDQGGHYRWHGVHUYDQW
&DPLOOH&ODXGHO,QWKHPDUJLQUHFHLYHG$SULO5HIXVDO-XO\
,QWHUHVWLQJO\WKHGRFXPHQWDWLRQIRUWKHSXUFKDVHUHIXVDOKDVQHYHUEHHQIRXQGLQWKH
0LQLVWU\¶VDUFKLYHILOHV0RUHRYHUWKHGHHSHU,GHOYHLQWRWKHGHWDLOVRI&ODXGHO¶VLQWHUDFWLRQV
ZLWKWKHJRYHUQPHQWWKHPRUHLWDSSHDUVPXOWLSOHVHFUHWVZHUHNHSWDQGUHFRUGV³ORVW´7KLV
VDPHWUDJHG\H[WHQGVWRWKHUHFRUGVUHODWLQJWRKHUWUHDWPHQWLQWKHDV\OXP,WFDQRQO\EH
SUHVXPHGWKDWZLWKWKHPRGHUQUHVXUJHQFHRILQIRUPDWLRQFRQILUPLQJ&ODXGHOJUHDWQHVVWKH
)UHQFKJRYHUQPHQWDQGSXEOLFDUHDVKDPHGWKDWWKHLURZQVRFLHW\FRXOGKDYHWUHDWHGVXFKDQ
DUWLVWZLWKVRPXFKLQMXVWLFH
6HHNLQJ5HGHPSWLRQIURP0DOH2SSUHVVLRQ+HU5ROHDQG&RQWULEXWLRQDVD:RPDQ
$5HYROWDJDLQVW1DWXUHD:RPDQ*HQLXV±2FWDYH0LUEHDX
/HWXVQRZHPEDUNRQDGLIIHUHQWDSSURDFKWRH[DPLQLQJ&ODXGHO¶VZRUNV1RWRQO\GLG
&ODXGHOVHHNUHGHPSWLRQIRUKHUXQZDQWHGDERUWLRQDQGIURPWKHJXLOWFDXVHGE\KHUVXEVHUYLHQW
DIIDLUDVLOOXVWUDWHGHDUOLHULQWKHDQDO\VLVRIKHUDJRQ\VKHGHVLUHGGHVSHUDWHO\WREHIUHHIURP
WKHPDOHRSSUHVVLRQWKDWZDVHYHUSUHVHQWDURXQGKHU7KXVOHWXVFRQVLGHUKHUFRQWULEXWLRQWRD
SRVVLEOHIHPDOHUHGHPSWLRQ
8QWLOWKHYHU\HQGRIWKFHQWXU\)UHQFKVRFLHW\ZRPHQZKRGHVLUHGWRH[SUHVV
LQGLYLGXDOFUHDWLYLW\DQGSURIRXQGWKHPHVLQWKHLUDUWZHUHLPPHGLDWHO\VWLIOHG7KH\ZHUH
FRQILQHGWRVXSHUILFLDOVXEMHFWVVXFKDVODQGVFDSHVVWLOOOLIHDQGIXOO\FORWKHGPXQGDQHILJXUHV
,WZDVUDUHWKDWDZRPDQKDGWKHRSSRUWXQLW\WRZRUNIURPDOLYHQXGHPRGHO5RGLQ¶V
LQYLWDWLRQWR&DPLOOH&ODXGHOKHUIULHQG-HVVLH/LSVFRPEDQGDFKRLFHIHZRWKHUIHPDOHVWR
ZRUNLQKLVDWHOLHUPXVWKDYHEHHQYLHZHGDVDQLQFUHGLEOHSULYLOHJHDQGDVKRFNWRWKHSXEOLF
&DUDQIDDWWHVWHGWKDW&ODXGHOKDVRIWHQEHHQ³RPLWWHGIURPWKHJURZLQJERG\RIIHPLQLVW
OLWHUDWXUH´$GGLWLRQDOO\IURPWKHIHZUHFRUGV,KDYHFRPHDFURVVRQWKHUDUHRFFDVLRQWKDW
VKHZDVJLYHQDSODFHDPRQJ:HVWHUQZRPHQDUWLVWVLWZDVRIWHQWRVKRZWKDWKHUFKRLFHWR
ZRUNRXWVLGHRIDSSURSULDWHVRFLHWDOGRPDLQVLQHYLWDEO\UHVXOWHGLQPDGQHVV,QKHUERRN7KH
)HPDOH0DODG\(ODLQH6KRZDOWHUFODULILHGWKHVRXUFHRIWKLVSHFXOLDULGHD,QKHUHIIRUWWRPDNH
XSIRUWKHODFNRI³JHQGHUDQDO\VHVDQGIHPLQLVWLFFULWLTXHVPLVVLQJIURP«KLVWRU\«´VKH
DUJXHGWKDW³PHQWDOEUHDNGRZQV>ZHUH@WKHUHVXOWRIDVRFLRFXOWXUDOFRQWH[WWKDWGHSULYHGZRPHQ
RIVRFLDORULQWHOOHFWXDORXWOHWVRUH[SUHVVLYHRSWLRQV´DQGWKHULJKW³WRVSHDNDQGDFW«LQ
WKHSXEOLFZRUOG´
3DUDOOHOWRRXUWKHPHRIUHGHPSWLRQ6KRZDOWHUDUJXHVWKDWWKHVLOHQWVSLULWXDODQG
LQWURVSHFWLYHPHWKRGZKLFK&ODXGHOXVHGWRFUHDWHVKRXOGEHVHHQDV³DZD\WRHVFDSHVXEMHFWLRQ
DQGH[SORLWDWLRQE\PDOHGRPLQDWHGLQVWLWXWLRQV´&DUDQID&DUDQIDWKRXJKRSSRVHGWR
6KRZDOWHU¶VDUJXPHQWDJUHHGWKDWVRFLHW\DQG³FXOWXUDOFRQWH[W´ZHUHFDWDO\VWVWRWKHDUWLVW¶V
WUDJLFGRZQIDOO3URPLQHQWPXVLFLDQDQGPHPEHURIVRFLHW\&ODXGHO'HEXVV\GHVSLWHKLV
FORVHIULHQGVKLSZLWK&ODXGHODQGKLVFRQVWDQWHVWHHPRIKHUZRUNZDVVKRFNHGWKDWVXFKWDOHQW
FRXOGFRPHIURPDZRPDQ&DUDQID
7KRXJKUHFRUGVWDWHVWKDWWKHUHZHUHLQGHHGRWKHUZRPHQZKRKDGWKHSULYLOHJHWRVFXOSW
LQ5RGLQ¶VVWXGLRQRQHVKDUHG&ODXGHO¶VUHPDUNDEOHJLIW)RULQVWDQFHKHUGHDUIULHQG
URRPPDWHDQGVWXGLRSDUWQHU-HVVLH/LSVFRPEDGPLWWHGWKDWGHVSLWHKHUHIIRUWVWKHFDOLEHURIKHU
SLHFHVZDVQRWHTXDOWRWKDWRI&ODXGHO¶V$\UDO&ODXVHVDLG³>-HVVLH@ZDVLQWHUHVWHGLQYLVXDO
WUXWKQRWLQHPRWLRQDOH[SUHVVLYLW\«,QKHUZRUNVVKHSURGXFHGµWKHVDPHIUHVKQHVVDQG
SODVWLFLW\¶DV&ODXGHOµEXWQHYHUWKHVDPHLQWHUHVWLQWKHLGHDRIWKHFRUUHVSRQGHQFHEHWZHHQ
H[WUHPHHPRWLRQDQGWKHOLIHRIWKHPDWHULDOLQWKHKDQGVRIWKHDUWLVW¶´$\UDO&ODXVH6KH
ODPHQWHGWKDWKHUSLHFHVVLPSO\GLGQRWKDYHWKHVDPHLPSDFWXSRQWKHYLHZHUDVKHUIULHQG¶V
<HWZHPXVWEHDULQPLQGWKDW&ODXGHO¶VVSLULWXDOLW\LVZKDWJDYHKHUWKHXSSHUKDQG/LSVH\LQ
KLVERRNGHVFULEHGWKH³VSLULWXDO´DVDQXQVWRSSDEOH³IRUFH´ZKHQKDUQHVVHGDQGLQWHJUDWHG
ZLWKLQDUW,WLVSUHFLVHO\WKLVIRUFHZLWKZKLFK&ODXGHOVXUSDVVHGWKRVHDURXQGKHUDQG
VXUPRXQWHGRQHREVWDFOHDIWHUDQRWKHU
$QRWKHUPRUHVXEWOHIRUPRIUHGHPSWLRQFDQEHSHUFHLYHGLQ5RGLQ¶VDSSURYDORI
&ODXGHO,QYLHZRIWKHIDFWWKDWDIWHU&ODXGHOGLGQRWSOHDVHKHUSDUHQWVLQOLYLQJXSWR
WKHLUERXUJHRLVH[SHFWDWLRQVVKHIRXQGUHOHDVHLQ5RGLQ¶VVDWLVIDFWLRQZLWKKHUZRUN0RUHRYHU
GHVSLWHRXUHIIRUWVWRGHWDFKKHUIURPKLVQDPHDQGUHSXWDWLRQLWZDVKLVDSSUHFLDWLRQWKDWJDYH
KHUWKHIRXQGDWLRQRIFRQILGHQFHVKHQHHGHGWRFRPSHWHLQWKHSXEOLFUHDOP(YHQODWHLQKLVOLIH
5RGLQDGPLWWHGWKDW³7KHKDSSLQHVVRIDOZD\VEHLQJXQGHUVWRRGRIDOZD\VVHHLQJKLV
H[SHFWDWLRQVH[FHHGHGZDVKHKLPVHOIVDLGRQHRIWKHJUHDWHVWMR\VRIKLVDUWLVWLFOLIH´/H
1RUPDQG5RPDLQ
6XEVHTXHQWO\$\UDO&ODXVHVD\V³,WLVLQWHUHVWLQJWRQRWHWKDWDWQRSRLQW>LQKHU
VWUXJJOHV@GLG&ODXGHOWXUQWRZDUGRWKHUZRPHQDUWLVWV´6KHDUJXHVWKDWWKLVZDVGXHWR
KHUSRRUUHODWLRQVKLSZLWKKHUPRWKHUDQGVLVWHUDQGEHFDXVHRIWKHPVKHGLGQRWWUXVWZRPHQ
0RUHRYHUIURPZKDWLVUHFRUGHGRIKHULQWHUDFWLRQZLWKZRPHQVKHYLHZHGWKHPDVXQZLOOLQJ
WRKHOS,Q&ODXGHOZURWHDOHWWHUWR5RGLQZKLFKSODLQO\LOOXVWUDWHGKHUIUXVWUDWLRQZLWK
ZRPHQ,QLWVKHSURWHVWHGWKDWFRPPLVVLRQVE\SRZHUIXOPHQVXFKDV0DWKLDV0RUKDUGWZHUH
QRWDOZD\VQREO\JLYHQ6KHVWDWHGWKDWRIWHQWLPHVLWUHTXLUHGDUWLVWVWREHFRPH³DPLVLQWLPHVGH
0DGDPH0RUKDUGW´ 5LYLqUH6KHDOVRFRPSODLQHGWKDWKHRQO\UHDGLO\KHOSHGWKRVH
³GXPHPHSD\VGHODPHPHUHOLJLRQ´ DQGFHUWDLQO\GXPrPHVH[H
,QWKLVVDPHOHWWHUVKHRIIHUHG5RGLQDPHWDSKRUWRLOOXVWUDWHWKHLQMXVWLFHVKHIHOW6KH
GHVFULEHGKHUGRRPDV³>XQH@KDLQHQRLUH«GHWRXWHVOHVIHPPHVDXVVLW{WTX¶HOOHVPHYRLHQW
SDUDvWUH«´DQGDGGHG³MXVTX¶mFHTXHMHVRLVUHQWUpHGDQVPDFRTXLOOHRQVHVHUWGHWRXWHVOHV
,QWLPDWHIULHQGVZLWK0UV0RUKDUGW
)URPWKHVDPHFRXQWU\RIWKHVDPHUHOLJLRQDQGFHUWDLQO\RIWKHVDPHJHQGHU
DUPHVHWGHSOXVDXVVLW{WTX¶XQKRPPHJpQpUHX[V¶RFFXSHGHPHIDLUHVRUWLUG¶HPEDUUDVOD
IHPPHHVOjSRXUOXLWHQLUOHEUDVHWO¶HPSrFKHUG¶DJLU´ 7KLVLPDJHRIDFUHDWXUH
HQVQDUHGLQLWVVKHOOWUXO\H[SRVHVWKHSULVRQOLNHVLWXDWLRQWKDWWKHODWHWKFHQWXU\)UHQFK
VRFLHW\LPSRVHG
)XUWKHUPRUHQRWRQO\GLG&ODXGHOEHOLHYHZRPHQWREHXQZLOOLQJWRKHOSLQKHU
³XQVXLWDEOH´SOLJKWVVKHWUXO\GHHPHGWKHPLQFDSDEOHRIHIIHFWLYHO\PDNLQJDGLIIHUHQFH
+HUIHPDOHPRGHOVZHUH³PHHNZLWKRXWFLYLFRUSROLWLFDOSRZHUDQGWRWDOO\GHSHQGHQWXSRQ
WKHLUIDWKHUVDQGKXVEDQGV´$\UDO&ODXVHDQGDOWKRXJKVRPHPD\DUJXHWKDW&ODXGHO¶V
RZQIDWKHUZDVDJHQHURXVHQDEOHU0RQVLHXU&ODXGHOKLPVHOIDGPLWVWKDWWKHPDMRULW\RIKLV
DVVLVWDQFHZDVJLYHQZLWKRXWUHTXHVW,QKHZURWHWRKLVVRQ3DXO³6KHDVNVIRUIUDQFV
ZHVHQGIUDQFVRUVKHDVNVIRUQRWKLQJDQGZHVHQGIUDQFVDQ\ZD\RIWHQVHYHUDOWLPHV
LQDWULPHVWHU´$\UDO&ODXVH8QIRUWXQDWHO\WKHVHVPDOOJLIWVZHUHDUDULW\GHVSLWH
&ODXGHO¶VWDOHQWVKHODFNHGDGHTXDWHVXSSRUW
<HWDGPLWWHGO\WKLQJVZHUHFKDQJLQJIRUZRPHQDQGVPDOOEXWVLJQLILFDQWPHDVXUHVRI
LPSURYHPHQWKDGVSUXQJXSLQ3DULV$VDSSURDFKHGWKH$FDGpPLH-XOLDQRSHQHGDQG
EHJDQWRRIIHUDOWHUQDWLYHFODVVHVWRERWKZRPHQDQGPHQZKRGHVLUHGVHULRXVDUWLQVWUXFWLRQ%\
VHYHUDOVWXGHQWVDWWKHDFDGHP\ZHUHSULYLOHJHGWRZRUNZLWKOLYHQXGHPRGHOVDQGWZLFH
HDFKZHHNSURPLQHQWDUWLVWVFDPHWRUHYLHZERWKWKHPHQDQGWKHZRPHQ¶VZRUN³7KHVH
PDVWHUVSOD\HGDFUXFLDOUROHLQVXVWDLQLQJWKHFRQILGHQFHRIWKHLUIHPDOHVWXGHQWVZKRZHUHWRR
RIWHQGLVFRXUDJHGE\WKHELDVWKH\HQFRXQWHUHGLQWKHDUWZRUOG´$\UDO&ODXVH0DULH
%DVKNLUWVHIIDIRUPHUVWXGHQWERWKSUDLVHGDQGFULWLFL]HGWKHVFKRRO,QRQHEUHDWKVKHZURWH
³,QWKHDWHOLHUHYHU\WKLQJGLVDSSHDUV«ZHDUHRXUVHOYHVZHDUHLQGLYLGXDOVDQGZHKDYHDUWDQG
$EODFNKDWUHGZRPHQIHHOWRZDUGPHDVVRRQDVWKH\VHHPH«XQWLO,UHWXUQLQVLGHP\VKHOOWKH\XVHHYHU\
SRVVLEOHZHDSRQDQGPRUHRYHUDVVRRQDVDJHQHURXVPDQWULHVWRKHOSPHRXWLQDGLIILFXOWVLWXDWLRQDZRPDQLV
WKHUHWRKROGKLVDUPDQGSUHYHQWKLPIURPDFWLQJ
QRWKLQJHOVHLQIURQWRIXV´$\UDO&ODXVH<HWLQWKHQH[WEUHDWKVKHUHFRUGHG³7KHVHPHQ
IHHOFRQWHPSWIRUXV«DQGRQO\ZKHQWKH\ILQGDVWURQJDQGHYHQDFRDUVHFRPSRVLWLRQDUHWKH\
KDSS\EHFDXVHWKHVHIODZVDUHUDUHDPRQJZRPHQ,WLVWKHZRUNRIDPDQWKH\VDLGRIPH,WLV
HQHUJHWLFLWLVQDWXUDO´$\UDO&ODXVH
%\ZKHQ&DPLOOH&ODXGHOHQUROOHGHTXDOLW\KDGWDNHQDQRWKHUVWHSIRUZDUGZLWKLQ
WKHZDOOVRIDFRPSHWLQJLQVWLWXWLRQWKH$FDGHP\&RODURVVL6KHFKRVHWKLVVFKRROVSHFLILFDOO\
GXHWRLWVHTXDOLW\LQWXLWLRQEHWZHHQPHQDQGZRPHQLWVVWURQJIRFXVRQPRGHOLQJLWV
IOH[LELOLW\DQGLWVZLOOLQJQHVVWRRIIHUHTXDORSSRUWXQLWLHVWRERWKJHQGHUV$\UDO&ODXVH
5HJDUGLQJIXUWKHUDGYDQFHVEURXJKWE\WKHHQGRIWKH¶V$\UDO&ODXVHVDLG³$VVRPH
ZRPHQZHUHWKURZLQJWKHLUROGFRQILQLQJFORWKHVRXWWKHZLQGRZRWKHUZRPHQZHUH
FKDOOHQJLQJWKHWUDGLWLRQDOUROHVDVVLJQHGWRWKHP´'HERUD6LOYHUPDQLQKHUFRQVLGHUDWLRQ
RIZRPHQ¶VSRVLWLRQVLQODWHWKFHQWXU\)UDQFHVDLG³,QWKH¶VWKHOHJDODQGSURIHVVLRQDO
SRVVLELOLWLHVIRUPLGGOHFODVVZRPHQLQ)UDQFHFKDQJHGVLJQLILFDQWO\«>DQG@DOWKRXJKWKHDFWXDO
QXPEHURI)UHQFKZRPHQDIIHFWHGE\WKHFKDQJHVZDVVPDOOWKHYLVLEOHDQGXQIDPLOLDUFKDUDFWHU
RIWKHQHZERXUJHRLVZRPDQJHQHUDWHGDSRZHUIXOV\PERORIWKHIHPPHQRXYHOOHWKH³1HZ
:RPDQ´)XUWKHUPRUHXQGHUVWDQGLQJWKHFRQWURYHUV\EHKLQGWKHLGHDRIWKHHPHUJLQJ
IHPPHQRXYHOOHDWWKHWXUQRIWKHFHQWXU\ZLOOHQDEOHXVWREHWWHUXQGHUVWDQG&DPLOOH&ODXGHO¶V
UROHDVDZRPDQZKRIRU\HDUVSUHFHGLQJKDGDOUHDG\EHHQDVVHUWLQJKHUUROHDPRQJPHQDQG
ILJKWLQJWRKROGKHUJURXQG
³7KHPHQDFHRIWKHIHPPHQRXYHOOHZKROHIWKRPHDQGIDPLO\IRUDFDUHHUSHUYDGHG
FRQWHPSRUDU\MRXUQDOVEHWZHHQDQG´6LOYHUPDQ([DPSOHVLOOXVWUDWLQJWKHWKUHDW
VRFLHW\IHOWEHJDQLQWKHIRUPRISRSXODUFDULFDWXUHVSDWWHUQHGDIWHU'DXPLHU¶V/HV%DVEOHXV
7KH%OXHVWRFNLQJVZKLFKDSSHDUHGLQWKHSDJHVRIEHVWVHOOLQJERRNVDQGPDJD]LQHV,QWKHVH
ZRPHQZKROHIWWKHLUWUDGLWLRQDOGRPHVWLFUROHVLQWKHLUIDPLOLDOKDYHQVZHUHVKRZQ
³WUDQVIRUPHGLQWRµKRPPHVVHV¶GHVLFFDWHGDQGULJLGFKDUDFWHUVGLYHVWHGRIDOOIHPLQLQH´
TXDOLWLHV6LOYHUPDQ7KH)UHQFKSXEOLFZDVSUHRFFXSLHGZLWKWKHPHQDFHRIWKHIHPPH
QRXYHOOHDQG6LOYHUPDQRIIHUVVRPHLGHDVDVWRZK\WKLVZDVWKHFDVH
7KHILUVWIDFWRUVKHVXJJHVWVLVWKHVRFLDOTXHVWLRQ%HWZHHQDQG
IHPLQLVWSHULRGLFDOVEHJDQLQ)UDQFHDQGWKRXJK&DPLOOH&ODXGHOZDVQHYHUVHHQZHDULQJ
SDQWVQRUULGLQJDELF\FOHWRMRLQIHPLQLVWXQLRQVIHPLQLVWLQIOXHQFHFRXOGQRWKDYHEHHQ
GLVUHJDUGHG+RZHYHULQFRQWUDVWWRWRGD\¶VRIWHQLQWHQVHYLHZRIIHPLQLVPWKHZRPHQRIWKH
VVKDUHGZKDW.DUHQ2IIHQKDVDSWO\FDOOHGWKHLGHRORJ\RIµIDPLOLDOIHPLQLVP¶6LOYHUPDQ
7KH\VHDUFKHGIRUDW\SHRIVHSDUDWHEXWHTXDOMXVWLFHDQGDOWKRXJKWKH\UHVHQWHGWKHLU
LQIHULRUWUHDWPHQWWKH\OHGJHQHUDOO\SHDFHIXOFDPSDLJQVIRUOLPLWHGUHIRUP,QWKHVHHDUO\
\HDUVRIIHPLQLVPWKHLUGHPDQGVKDUGO\VHHPHGXQUHDVRQDEOH)RUH[DPSOHWKHH[LVWLQJ&LYLO
&RGHUHOHJDWHGDPDUULHGZRPDQWRWKHVWDWXVRIDGHSHQGHQWPLQRUUHTXLULQJWKDWVKHJLYHRYHU
WRKHUKXVEDQGDOOKHUILQDQFLDOUHVRXUFHV7KXVZRPHQVLPSO\KRSHGWREHWUHDWHGDVDGXOWV
ZLWKDIUDFWLRQRIWKHUHVSHFWPHQVRHIIRUWOHVVO\UHFHLYHG1HYHUWKHOHVVGHVSLWHWKLVLQMXVWLFHLQ
KHU\RXQJHU\HDUVZKHQVKHZDVSDVVLRQDWHO\LQORYHZLWK5RGLQ&ODXGHOZRXOGKDYHUHVROXWHO\
PDGHWKLVVDFULILFHKDGKHFRQVHQWHGWRPDUU\KHU
³7KHVHFRQGIDFWRUFRQWULEXWLQJWRWKHSHUFHSWLRQRIWKHIHPPHQRXYHOOH´6LOYHUPDQ
QRWHVZDV³WKHQHZDFFHVVRIVRPH)UHQFKZRPHQWRKLJKHUHGXFDWLRQDQGSURIHVVLRQDOFDUHHUV´
&ODXGHOZDVIRUWXQDWHWRKDYHDWWDLQHGKLJKHUHGXFDWLRQWKDQPRVWJLUOVDWDQHDUO\DJH
EHFDXVHERWKVKHDQGKHUEURWKHU3DXOZHUHSULYDWHO\WXWRUHGLQ/DWLQPDWKOLWHUDWXUHDQGRWKHU
DUHDV6KHZDVRQO\WZHOYH\HDUVROGZKHQDORQJZLWKVFKRROLQJVKHH[SHULPHQWHGZLWKVLPSOH
PRGHOLQJDQGVHWKHUPLQGILUPO\WREHFRPHDVFXOSWRU
2WKHUUHDVRQVWKHIHPPHQRXYHOOHLPPHGLDWHO\SRVHGDWKUHDWWRPHQDQGFRQYHQWLRQDOO\
PLQGHGVRFLHW\LQFOXGHGWKHIHDURIIHPDOHV¶LPSRVLQJSK\VLFDOSUHVHQFHDQGD³GHFOLQHLQWKH
ELUWKUDWHDQGWKHUHODWLYHVWDJQDWLRQRIWKH)UHQFKSRSXODWLRQ´DVZRPHQGHOD\HGKDYLQJ
FKLOGUHQLQIDYRULISXUVXLQJQHZO\DYDLODEOHDFFRPSOLVKPHQWV7KH3DULVLDQSXEOLFZDV
FRQFHUQHGWKDW³*HQGHUHTXDOLW\ZRXOGFRQWULEXWHWRDQHZZRUOGRIVHQVXDOLPSRYHULVKPHQWDQG
XQLIRUPDPELWLRQV«´6LOYHUPDQ+HQFHDVPDQ\ZRPHQPLQLPL]HGWKHLUFRTXHWWLVKQHVV
DQGDYRLGHG³RSXOHQFHDQGGHFRUDWLRQ´WKH\FKDOOHQJHGWKHLUORQJVWDQGLQJUROHRI³DQ
RUFKHVWUDWHGREMHWG¶DUW´6LOYHUPDQ7KLVFKDQJHZDVQRWDZHOFRPHWUDQVIRUPDWLRQLQWKH
H\HVRIPRVW7KHIROORZLQJGHFODUDWLRQE\)UDQW]-RXUGDLQPDGHLQSUHFLVHO\LOOXVWUDWHV
WKHELWWHUQHVVPHQH[SHULHQFHG³7KHQHZZRPDQLVQRWEHDXWLIXO6KHORRNVUDWKHUOLNHDER\
DQGLOOXVWUDWHVPRUHWKDQDQ\WKLQJWKHH[SUHVVLRQRIDILUPFKDUDFWHU«DUREXVWO\KDUPRQLRXV
ERG\«7KH\DUHQRORQJHUZRPHQRISOHDVXUH«EXWZRPHQZKRVWXG\RIYHU\VREHU
FRPSRUWPHQW«>7KH\@H[SUHVVILUPQHVV«URXJKQHVVDQGGHFLVLYHQHVV´TWGLQ6LOYHUPDQ
&DPLOOH&ODXGHOZLWKKHUUREXVWDQGEDWWHUHGILJXUHILUPFKDUDFWHUURXJKQHVVDQG
GHFLVLYHQHVVZRXOGKDYHILWWKLVVWHUHRW\SHFRQVLGHUDEO\ZHOODQGVKHXQGRXEWHGO\XSVHW
RQORRNHUVZKRZLWQHVVHGKHUURDPLQJIUHHO\DQGXQHVFRUWHGWKURXJKDOOZDONVRIVRFLHW\
6LOYHUPDQDGGHGWKDWFRQWLQXRXVO\DIWHU³'RFWRUVSROLWLFLDQVDQGVFKRODUV«UDOOLHGWR
GHIHQGWKHWUDGLWLRQDOIHPDOHUROHDQGVRXJKWPHGLFDODQGSKLORVRSKLFDOUDWLRQDOHVWRFRQVLJQ
ZRPHQWRWKHKRPH´6WLOO&ODXGHOZDVRQHRIWKHEUDYHIHZZKRRSHQO\IRXJKWWKHVH
UHVWUDLQWV,QWKHHQGVKHOLYHGDORQHZRUNHGDORQHDQGUHIXVHGDQLQWHUPHGLDU\ZKHQGHDOLQJ
GLUHFWO\ZLWKPHQLQWKHDUWZRUOG1HYHUWKHOHVVDVDGPLUDEOHDVKHUFKRLFHVDSSHDUWRGD\LQDOO
SUREDELOLW\WKH\XOWLPDWHO\FRQWULEXWHGWRKHUIDPLO\¶VGHFLVLRQWRGHHPKHULQVDQHDQGKDYHKHU
LQVWLWXWLRQDOL]HGOHDGLQJWRKHUWUDJLFWKLUW\\HDUGHPLVH
$V$\UDO&ODXVHDGGUHVVHGWKHWRSLFRIIHPDOHFRQWULEXWLRQWRWKHQLQHWHHQWKFHQWXU\DUW
ZRUOGVKHRIIHUHGDYDOXDEOHFRPSDULVRQEHWZHHQ&DPLOOH&ODXGHODQGRQHRIKHU
FRQWHPSRUDULHV+pOqQH%HUWDX[+RZHYHUVLPSO\EHFDXVH%HUWDX[ZDVDIHPDOHVFXOSWRULQ
3DULVLQWKLVVDPHHUDDQGVXIIHUHGVLPLODUUHSUHVVLRQDFORVHUH[DPLQDWLRQRIKHUOLIHZLOOUHYHDO
ZKHWKHUVKHDQG&ODXGHOWUXO\IXOILOOHGSDUDOOHOUROHVLQFRQWULEXWLQJWRZDUGSURJUHVVDQG
UHGHPSWLRQIRUZRPHQ
+pOqQH%HUWDX[ZDVIRUWXQDWHWREHUDLVHGLQWKHKRPHRIDQDUWLVWKHUIDWKHUDQGODWHU
KDGWKHSULYLOHJHWRZRUNXQGHUWKHSURPLQHQWVFXOSWRU$XJXVWLQ'XPRQW³+HSURYLGHGKHU
ZLWKDWHFKQLFDOFRPSHWHQFHDQGFRPSHWLWLYHHGJHXQXVXDOIRUDZRPDQDWWKDWWLPH´
(DVWHUGD\+RZHYHUWKHGLYLGHEHWZHHQKHUDWWLWXGHWRZDUGFUHDWLRQDQG&ODXGHO¶VZDVLQWKH
H[HFXWLRQRIWKHLUZRUN%HUWDX[FRQIRUPHG³WRDFRQVHUYDWLYHDFDGHPLFLGHDO´(DVWHUGD\
7KDWLVWRVD\VKHVXFFHHGHGDWDSSHDOLQJWRDZLGHUDQJHRISDWURQVEXWLWZDVDWWKHH[SHQVHRI
OLPLWLQJKHUWUXHFUHDWLYLW\
)RUH[DPSOHDOWKRXJKVKHFUHDWHGKHURZQDUWVRFLHW\/¶8QLRQGHV)HPPHV3HLQWUHVHW
6FXOSWHXUVLQWRKHOSZRPHQH[KLELWWKHLUZRUNVKHGLGQRWSURJUHVVWRZDUGFKDQJLQJWKH
IDFWWKDWHTXDORSSRUWXQLW\LQWKHSXEOLFDVDZKROHZDVVWLOOREVWUXFWHGE\WUDGLWLRQ:KDW¶V
PRUHVKHFRQIRUPHGWRFRQWULEXWLQJDQGH[KLELWLQJ³FRPSURPLVHG´ZRUNV+HUH[SRVLWLRQV
ZHUHNQRZQIRUIHDWXULQJ³ZRPHQ>ZKR@UDUHO\YHQWXUHGRXWVLGHRIVDQFWLRQHGVXEMHFWPDWWHUV
OLWHUDU\«JHQUH>DQGODQGVFDSHV@²DQGVHFRQGUDWHZRUNV>ZKLFK@ZHUHWRRUHDGLO\DFFHSWHG´
$\UDO&ODXVH%HUWDX[WRRNSULGHLQKHUPHGDOIURPWKH8QLYHUVDO([SRVLWLRQ
KRZHYHUVHHLQJDVLWZDVDQ³KRUVFRQFRXUVGHVLJQDWLRQ´WKDWPHDQWKHUZRUNZDV³«QRW
VXEMHFWWRMXU\DSSURYDOIRUWKHDQQXDO>DQGUHYHUHG@6DORQH[KLELWLRQV´(DVWHUGD\&ODXGHO
ZRXOGQHYHUKDYHFRQFHGHGWRVXFKDFWLRQVZKLFKLQHYLWDEO\UHVXOWHGLQDORVWRSSRUWXQLW\WR
SDUWLFLSDWHLQWKHEHVWRIFRPSHWLWLRQV
%HUWDX[ZDVDOVRNQRZQIRUGLVUHJDUGLQJKHULQWHJULW\LQSXUVXLWRIDFRPPLVVLRQ,QKHU
IRUPDOOHWWHUVVHHNLQJPDWHULDOVRURWKHUUHTXHVWVVKHNQHZKHUJHQGHUHQKDQFHGWKHSRVVLELOLW\
RIUHMHFWLRQ7KXVVKHRIWHQDSSHDOHG³WRHPSDWK\SDWHUQDOLVPDQGGLVFHUQPHQW>DQG@LQHDFK
FDVHVKHFDOOHGDWWHQWLRQWRKHUXQXVXDOSRVLWLRQDVDZRPDQIDFLQJWKHGLIILFXOWLHVRIVXFFHHGLQJ
LQDPDOHGRPLQDWHGSURIHVVLRQ´(DVWHUGD\)RULQVWDQFH³,QDQXQGDWHGOHWWHUIURPDPRQJWKH
UHFRUGVPDLQWDLQHGE\WKHDUWEXUHDXFUDF\«%HUWDX[DVNHGDQXQQDPHG³0DGDPH´WRXVHKHU
LQIOXHQFHWRSHUVXDGHWKHDGPLQLVWUDWLRQWRSXUFKDVHKHUUHOLHIRIWKH$VVXPSWLRQ´(DVWHUGD\
6KHWKHQSURFHHGHGWRIODWWHUDQGEHJDQ\PDQZKRKDG³DQ\VXEVWDQWLDOLQIOXHQFHRYHUWKHDUW
EXUHDXFUDF\´(DVWHUGD\,QDVXEVHTXHQWOHWWHUVKHZURWH³6HHPHDVDZRPDQDZLIHDQG
PRWKHU«ZKRZDQWVWRWULXPSKLQKHUSRVLWLRQ«´KRSLQJWRJDLQHQRXJKSLW\DQGFKDULW\WRVHOO
KHUSLHFH6KHDOVRLQFOXGHGWKHIROORZLQJSLWLIXOOLQH³>LI@DZRUNLQPDUEOHRULQVWRQHZRXOG
EHHQWUXVWHGWRPHE\KLVH[FHOOHQFHWKH0LQLVWHU,ZRXOG>OLYH@IXOILOOHGLQORIW\REOLJDWLRQV«,
ZRXOGRZH>LOOHJLEOHZRUG@«´(DVWHUGD\&ODXGHOZRXOGQHYHUKDYHQHJRWLDWHGLQVXFKDZD\
6KHZDVFRQILGHQWWKDWKHUWDOHQWZDVH[WUDRUGLQDU\DQGUHDOL]HGWKDWKHUPDVWHUSLHFHVZHUH
ZRUWKDIDLUSXUFKDVH
5HJUHWWDEO\&ODXGHOKDGVRPXFKWDOHQWEXWODFNHGWKHFRUUHVSRQGLQJVXSSRUW8QOLNH
RWKHUSURPLQHQWZRPHQDUWLVWVVKHGLGQRWLGHQWLI\KHUVHOIDVEHLQJSUHYHQWHGE\ZRPHQ¶V
VWUXJJOHV³6KHZRXOGKDYHEHHQDSSDOOHGE\WKHFRPSURPLVHV%HUWDX[ZDVZLOOLQJWRPDNHLQ
RUGHUWRPRYHIRUZDUG´(DVWHUGD\$\UDO&ODXVHVDLG³:KDWLV«GLVFRQFHUWLQJWRDZRPDQ
VFXOSWRUDQGWRZRPHQLQJHQHUDODUHWKHH[SUHVVLRQVRILQFUHGXOLW\VFDWWHUHGDPRQJWKHPRVW
JORZLQJUHYLHZVRI&ODXGHO¶VZRUNV$ZRPDQOLNH&ODXGHOZDVJHQHUDOO\YLHZHGDVD
SKHQRPHQRQDQGDVRXUFHRIFRQVWDQWDPD]HPHQWµ0DGHPRLVHOOH&DPLOOH&ODXGHO¶VDLG
>2FWDYH@0LUEHDXµEULQJVXVZRUNVWKDWE\WKHLULQYHQWLRQDQGWKHSRZHURIWKHLUH[HFXWLRQJR
ZHOOEH\RQGZKDWFDQEHH[SHFWHGRIDZRPDQ¶´«TWGLQ$\UDO&ODXVH,WZDVPHUHO\
DIWHUVHHLQJDQGFULWLTXLQJ/D9DOVHDQG&ORWKRWKDW0LUEHDXRIIHUHGDERWKIODWWHULQJDQGFXWWLQJ
UHPDUN+HVWDWHGWKDWWKHVHWZRZRUNV³FRQYH\HGVRSURIRXQGDSRHWU\DQGVRPDOHD
FRQFHSWLRQWKDWZHSDXVHTXLWHVXUSULVHGLQIURQWRIWKLVDUWLVWLFEHDXW\FRPLQJIURPDZRPDQ´
$\UDO&ODXVHDGGHG³$ZRPDQFRXOGQRWEHH[SHFWHGWRKDYHJHQLXVLIVKHGLGVKHZDV
SHUFHLYHGDVVH[XDOO\DPELJXRXV´
(YHQWKRXJK&ODXGHOGLGQRWMRLQWKHILQGHVLqFOHZRPHQ¶VXQLRQVMRLQWKHPRGHUQ
ZRPHQULGLQJELF\FOHVQRUWUDGHKHUGUHVVHVIRUPRUHPDVFXOLQHFORWKLQJVKHVWURYHWRUHSUHVHQW
ZRPHQLPSUHVVLYHO\LQKHUDUWZRUN7KLVLVYLVLEOHLQWKHSRZHUIXO2OG+pOqQHZKR
UHSUHVHQWHGDPDLGLQKHUSDUHQWV¶KRPH0DGHPRLVHOOH/LSVFRPEV7KH*RVVLSVDQG
LQPDQ\VHOISRUWUDLWV:LWKWKHH[FHSWLRQRI7KH:DYHLQZKLFKWKHZRPHQDUHLQHYLWDEO\
VXFFXPELQJWRRSSUHVVLRQLQPDQ\RWKHUFDVHVWKHIHPDOHILJXUHVDUHSRUWUD\HGKRSHIXOO\
VHHNLQJUHGHPSWLRQPHDQLQJDQGVWDQGLQGHSHQGHQWO\ZLWKRXWWKHDLGRIDPDQ
1RWRQFHLQKHU\HDUVRIFUHDWLRQZDV&ODXGHOZLOOLQJWRSOD\WKHVXEPLVVLYHJDPHRI
FRPSURPLVH6KHVDZQRUHDVRQIRUJHQGHUVHJUHJDWLRQDQGGLGWKHXQWKLQNDEOHE\VKDULQJD
VWXGLRZLWKDPDQ,QWKHHQG³&DPLOOHUHPDLQHGUHVROXWHLQILJKWLQJLQWKHVDPH6DORQVDVPDOH
VFXOSWRUVDQGZLWKWKHVDPHIUHHGRPRIH[SUHVVLRQ«´$\UDO&ODXVH
)LQDOO\DOWKRXJKLQHDFKRIWKHSUHYLRXVO\GLVFXVVHGLQVWDQFHVLQZKLFKUHGHPSWLRQZDV
VRXJKWZHZLWQHVVHGDWWLWXGHVRIKXPLOLW\ZKHQLWFDPHWRVHHNLQJUHGHPSWLYHHPDQFLSDWLRQIRU
KHUVHOIDVDZRPDQ&ODXGHOGLGLWWKURXJKGHILDQFH7KHDUJXPHQWVRIPDQ\DUWKLVWRULDQV
PDLQWDLQWKHLGHDWKDWGHILDQFHZDVSRVVLEO\WKHPRVWYLVLEOHFKDUDFWHULVWLFRI&DPLOOH&ODXGHO
6KHGHILHGWKHSUHMXGLFHGVRFLHW\LQZKLFKVKHOLYHGLQDOPRVWHYHU\VWHSVKHWRRNKHUFKRLFHRI
DFDUHHULQVFXOSWXUHKHUHQWUDQFHLQWRDSUHYLRXVO\DOOPDOHDWHOLHUKHUGHWHUPLQDWLRQWRVFXOSW
WKHQXGHZLWKDVPXFKIUHHGRPDVKHUPDOHFRXQWHUSDUWVKHUSHUVLVWHQFHLQVROLFLWLQJVWDWH
FRPPLVVLRQVIRUZRUNVWKDWZHUHVXUHWRRIIHQGWKHZDUSHGQRWLRQRISURSULHW\IDYRUHGE\PDOH
RIILFLDOVDQGVRRQ(DFKRIWKHVHFKRLFHVUHEHOOLRXVO\FKDOOHQJHGWKHSUHMXGLFHVRIKHUWLPH
&21&/86,21
+DYLQJH[DPLQHGSHULRGVRIHFVWDV\DJRQ\DQGUHGHPSWLRQLQWKHOLIHRI&DPLOOH
&ODXGHOLWLVQRZLQGLVSXWDEO\FOHDUWKDWIURPWKHGHVSDLULQJGHSWKVRILWVGDUNQHVVWRWKH
SLQQDFOHRILWVHQOLJKWHQPHQWWKHDUWRI&DPLOOH&ODXGHOJHQHUDWHVDOLJKWDVSLULWDEUHDWKRI
VSLULWXDOLW\DIHHOLQJRIGHOLYHUDQFHDQGDPHDVXUHRIIDLWKWKDWRQO\DQDUWLVWRIWUXHJHQLXV
FRXOGKDYHDFKLHYHG7KURXJKKHULG\OOLFVFXOSWXUHVVKHFRQYH\HGWKH³YROXSWXRXVFKDVWLW\´
ZKLFK3DXO&ODXGHODQGVRPDQ\RWKHUVUHYHUHG7KURXJKKHUDJRQL]LQJSLHFHVVKHOHDUQHGKRZ
WRFKDQQHOKHUSDLQWRZDUGDORIWLHUJRDO$QGWKURXJKKHUUHGHPSWLYHZRUNVVKHIRXQG
GHOLYHUDQFHIRUKHUVHOIDQGIRURWKHUVIURPH[FUXFLDWLQJRXWZDUGRSSUHVVLRQ6KHVKRQHEULJKWO\
DPLGVWKHUFRQWHPSRUDULHVZLWKKHUVNLOODWV\PEROLFDOO\FRQYH\LQJWKHVSLULWXDODQGKHU
PDVWHUSLHFHVHPLWWHGDQHWKHUHDOVHQVHRIKROLQHVVWKDWVWLUUHGWKHVRXORIDQ\IRUWXQDWHHQRXJKWR
VHQVHLW
)XUWKHUPRUHKHUWXPXOWXRXVH[SHULHQFHVHQGRZHGKHUVFXOSWXUHVZLWKSURRIRI³KHURZQ
YLVLRQRIH[LVWHQFHDSHUFHSWLRQWKDWOLIHLVVLPXOWDQHRXVO\WUDJLFDQGO\ULFDOXQGHUVWDQGDEOHDQG
P\VWHULRXVIUDJLOHDQGGXUDEOHLPPDQHQWDQGWUDQVFHQGHQWFKDQJHDEOHDQGHWHUQDOFRQFUHWH
DQGV\PEROLFFRPPXQLFDEOHDQGLQFRPPXQLFDEOH´&DUDQID$VDZRPDQRIWKH
QLQHWHHQWKFHQWXU\VKHFDPHXSDJDLQVWWKHVRFLDODQGDUWLVWLFOLPLWDWLRQVLPSRVHGXSRQKHUDQG
³YHKHPHQWO\DIILUPHGKHUULJKWWROLYHRXWVLGHWKHYDOXHVRIKHUWLPH´&DUDQID6KH
VWUXJJOHGHQGOHVVO\WREHDFFHSWHGDVDVFXOSWRULQKHURZQULJKW$\UDO&ODXVH$QG
WKURXJKKHUVWUXJJOHIRUUHGHPSWLRQVKH³OHIWEHKLQGVFXOSWXUHVWKDWZHUHIUHTXHQWO\DVGDULQJDV
DQ\RI5RGLQ¶V\HWHQGRZHGZLWKWKHLURZQGLVWLQFWLYHVSLULWXDOLW\«+HUZRUN>ZDV@SXUHVHUHQH
IUHVKJUDFHIXOVLQFHUHIDLWKIXO«DQGEDWKHGLQLQQHUOLJKWDQGWUXWK&DUDQID
1RWRQO\GLG&DPLOOH&ODXGHODFKLHYHUHGHPSWLRQIRUKHURZQSDLQDQGRSSUHVVLRQVKH
DOVRDWWDLQHGDUHPDUNDEOHPHDVXUHRIGHOLYHUDQFHIRUZRPHQRIKHUHUD&ULWLF+HQU\GH%UDLVQH
SXEOLVKHGDUHYLHZLQWKH5HYXHLGpDOLVWHDIILUPLQJWKDWVKH³OHGWKHZD\IRUDPRUH
HQOLJKWHQHGWUHDWPHQWRIZRPHQLQWKHDUWZRUOG«´+HWHVWLILHG³0DGHPRLVHOOH&ODXGHOLV
ZLWKRXWULYDOZKHQLWFRPHVWRKHUZLOOSRZHUKHUKDUGZRUNKHULQFUHGLEOHLQWHJULW\KHUIDLWKLQ
WUXWKZKLFKWRKHULV%HDXW\´$\UDO&ODXVH
,WLVWUXHWKDWLQILQGHVLqFOH)UDQFHGXHWRWKHDGYDQFLQJVHFXODUL]DWLRQRIVRFLHW\
YLHZHUVGLGQRWXQGHUVWDQGUHOLJLRXVDQGVSLULWXDOV\PEROLVPLQDUWDVFRPSUHKHQVLYHO\DVWKH\
KDGLQWKHSDVW0DQ\DUWFULWLFVIHOWFKDOOHQJHGE\&ODXGHO¶VLQQRYDWLYHXVHRIVSLULWXDOWKHPHV
ZLWKLQVXSSRVHGO\VHFXODUVFHQHV+RZHYHU$\UDO&ODXVHVWLSXODWHG³7KHFULWLFVZKR
FRQGHPQHGKHUIRUQRWEHLQJDEOHWRFUHDWHDQHZVW\OHIDLOHGWRXQGHUVWDQGWKDWKHUEDWWOHZDV
IRFXVHGLQDGLIIHUHQWGLUHFWLRQ´3DXOH[SODLQHGKLVVLVWHU¶VDPELWLRQLQWKHIROORZLQJZD\
³$ZRUNE\&DPLOOH&ODXGHO«LVDVRUWRIPRQXPHQWWRLQQHUWKRXJKWWKHVHHGRIDWKHPH
RIIHUHGWRDOOGUHDPV«´DQG,PXVWUHSHDWKLVHDUOLHUVWDWHPHQWZKHQKHVDLG³KHUVFXOSWXUHLV
YHU\GLIIHUHQWEHFDXVHLWZHOFRPHVOLJKWDQGUDGLDWHVWKHLQQHUGUHDPWKDWLQVSLUHGLW´,I
VRXJKWDQGSRQGHUHG&ODXGHO¶VJORULRXVWDOHQWZLOOUHVRQDWHWRWKHGHSWKVRIRQH¶VVRXO
&DPLOOH0DXFODLUFDOOHGKHU³WKHJUHDWHVWZRPDQDUWLVWRIWKHSUHVHQWWLPH´TWGLQ
$\UDO&ODXVH/RXLV9DX[FHOOHVDFULWLFLQKHURZQHUDUHIHUUHGWRKHUDV³RQHRIWKHPRVW
DXWKHQWLFVFXOSWRUVRIRXUWLPH´TWGLQ$\UDO&ODXVH,WLVWKLVVSLULWXDODXWKHQWLFLW\WKDW
UHQGHUV&ODXGHO¶VZRUNVRHIIHFWLYHO\WUDQVFHQGHQW,HFKR$QJHOR&DUDQIDZKHQKHDIILUPV
³WKHEHDXW\DQGWKHJORU\RIWKHZRUOG«VKLQHLQ&DPLOOH&ODXGHO¶VDUWDQGWKXVKHUZRUNV
VKRXOGEHWRXFKHGREVHUYHGDQGHQFRXQWHUHGZLWKWKHVDPHORYHWKHVDPHMR\WKHVDPH
VLQFHULW\DQGWKHVDPHVHQVHRIVROLWXGHWKDWFUHDWHGWKHP&ODXGHO¶VZRUNVH[SUHVVWKHPHDQLQJ
RIH[LVWHQFH«7RWKRVHZKRORRNDWWKHPFKDQWWKHPRUUHDGWKHPWKH\RIIHUDPRPHQWRI
HWHUQLW\´:LOOZHVHL]HWKLVPRPHQW"
),*85(6
)LJXUH&DPLOOH&ODXGHO/D9DOVH
3RLWLHUV0XVpH6DLQWH&URL[
)LJXUH&DPLOOH&ODXGHO
&ORWKR3DULV0XVpH5RGLQ
)LJXUH(XJqQH'UXHW
)DWHDQGWKH&RQYDOHVFHQW/RQGRQ
)LJXUH$XJXVWH5RGLQ
6KHZKRZDVWKH+HOPHW0DNHU¶V2QFH%HDXWLIXO:LIH3DULV0XVpH5RGLQ
)LJXUH-XOHV'HVERLV
0LVHU\3DULV0XVpH5RGLQ
)LJXUH0LFKHODQJHOR
'\LQJ6ODYH3DULV0XVpHGX/RXYUH
)LJXUH'RQDWHOOR
0DJGDOHQH3HQLWHQW)ORUHQFH0XVHRGHOO¶2SHUDGHO'XRPR
)LJXUH&DPLOOH&ODXGHO(DUO\SODVWHUOHIWDQGILQDOEURQ]HULJKWRI/¶kJHP€U
0XVpH5RGLQDQG0XVpHG¶2UVD\3DULVUHVSHFWLYHO\
)LJXUH&DPLOOH&ODXGHO7KH:DYH
0XVpH5RGLQ3DULV
)LJXUH&DPLOOH&ODXGHO6DNRXQWDOD
0XVpH5RGLQ3DULV
)LJXUH$XJXVWH5RGLQ(WHUQDO,GRO
0XVpH5RGLQ3DULV
)LJXUH&DPLOOH&ODXGHO/H3VDXPH
0XVpH%RXFKHUGH3HUWKHV$EEHYLOOH
)LJXUH*XVWDYH'RUp
7KH'RUp%LEOH/RQGRQ
)LJXUH-DPHV7LVVRW&UXFLIL[LRQVHHQIURPWKH&URVV
%URRNO\Q0XVHXP1HZ<RUN
)LJXUH&DPLOOH&ODXGHO%XVWRI5RGLQ
0XVpH5RGLQ3DULV
)LJXUH&DPLOOH&ODXGHO/HGLHXHQYROp
3ULYDWH&ROOHFWLRQ3DULV
)LJXUH&DPLOOH&ODXGHO/¶LPSORUDQWHRU7KH,PSORUHU
3ULYDWH&ROOHFWLRQ)UDQFH
)LJXUH$XJXVWH5RGLQ7KH3URGLJDO6RQ
0XVpH5RGLQ3DULV
)LJXUH$XJXVWH5RGLQ$GDP
7KH0HWURSROLWDQ0XVHXPRI$UW1HZ<RUN
)LJXUH0LFKHODQJHOR7KH&UHDWLRQRI0DQ
6LVWLQH&KDSHO9DWLFDQ&LW\
)LJXUH9LQFHQW9DQ*RJK7KH6WDUU\1LJKW
2LORQFDQYDV1HZ<RUN0XVHXPRI0RGHUQ$UW
)LJXUH3DXO*DXJXLQ9LVLRQ$IWHUWKH6HUPRQ
2LORQFDQYDV(GLQEXUJK1DWLRQDO*DOOHU\RI6FRWODQG
)LJXUH$OEHUW%DUWKRORPp$GDPDQG(YH
+HUPLWDJH0XVHXP6DLQW3HWHUVEXUJ
)LJXUH$XJXVWH5RGLQ7KH.LVV
0XVpH5RGLQ3DULV
)LJXUH&DPLOOH&ODXGHO&KDUOHV/KHUPLWWHDVD&KLOG
0XVpH,QJUHV0RQWDXEDQ
)LJXUH$XJXVWH5RGLQ8JROLQRDQGKLV&KLOGUHQ
0XVpH5RGLQ3DULV
)LJXUH-XOHV%DVWLHQ/HSDJH-RDQRI$UF
2LORQFDQYDV1HZ<RUN0HWURSROLWDQ0XVHXPRI$UW
)LJXUH-RKQ(YHUHWW0LOODLV-RDQRI$UF
2LORQFDQYDV3ULYDWH&ROOHFWLRQ
)LJXUH&DPLOOH&ODXGHO
/D3HWLWH&KkWHODLQH7KH/LWWOH0DQRU/DG\
3ULYDWH&ROOHFWLRQ)UDQFH
)LJXUH&DPLOOH&ODXGHO
-HDQQHHQIDQW-RDQDVD&KLOG
0XVpH5RGLQ3DULV
)LJXUH&DPLOOH&ODXGHO
/D3HWLWH&KkWHODLQH7KH/LWWOH0DQRU/DG\
3ULYDWH&ROOHFWLRQ)UDQFH
)LJXUH&DPLOOH&ODXGHO
/D3HWLWH&KkWHODLQH7KH/LWWOH0DQRU/DG\
0XVpHG¶$UWHWG¶,QGXVWULH$QGUp'LOLJHQW
5RXEDL[)UDQFH
%,%/,2*5$3+<
$\UDO&ODXVH2GLOH&DPLOOH&ODXGHO$/LIH+DUU\1$EUDPV,QF3XEOLVKHUV3ULQW
%RXWp*pUDUG/D9DJXH2X/D5HQDLVVDQFH'H/D)HPPH&DPLOOH&ODXGHO/H0LURLU(W/D
1XLW(GLWLRQVGHO
$PDWHXU3ULQW
%XOILQFK7KRPDV%XOILQFK
V0\WKRORJ\3ULQW
&DPLOOH&ODXGHO:HEKWWSZZZPXVHHURGLQIUDFFXHLOKWP!
&DUDQID$QJHOR&DPLOOH&ODXGHO $6FXOSWXUHRI,QWHULRU6ROLWXGH/RQGRQ(QJODQG$VVRFLDWHG
8QLYHUVLW\3UHVVHV,QF3ULQW
&KHQH\'DYLG0³6HFRQG9DWLFDQ&RXQFLO´&DWKROLF+LHUDUFK\KWWSZZZFDWKROLF
KLHUDUFK\RUJHYHQWHFYKWPO5HWULHYHG-DQXDU\
&KX3HWUD-DPHV7LVVRWµ7KH/LIHRI&KULVW¶1LQHWHHQWK&HQWXU\$UW:RUOGZLGH$-RXUQDO
RI3ULQW
'¶$OOHYD$QQH/RRNDJDLQ$UW+LVWRU\DQG&ULWLFDO7KHRU\1HZ-HUVH\3HDUVRQ(GXFDWLRQ
,QF3ULQW
'H%D\VHU3DWULFN-RXUQpHVGHODYLHG¶XQHDUWLVWH/H)LJDURKRUVVpULH
'ULVNHO0LFKDHO3DXO5HSUHVHQWLQJ%HOLHI5HOLJLRQ$UWDQG6RFLHW\LQ1LQHWHHQWK&HQWXU\
)UDQFH*HWW\*UDQW3URJUDP3ULQW
(DVWHUGD\$QDVWDVLD:RUNLQJWKH6\VWHP+pOqQH%HUWDX[DQG6HFRQG(PSLUH
3DWURQDJH3$57-RXUQDORIWKH&81<3K'3URJUDPLQ$UW+LVWRU\:HE
)HEUXDU\KWWSZHEJFFXQ\HGXGHSWDUWKLSDUWSDUWDUWLFOHVDHDVWHKWPO
(OLDGH0LUFHD&KDUOHV-$GDPVHWDO³7KHRVRSK\´7KH(QF\FORSHGLDRI5HOLJLRQ1HZ
<RUN0DFPLOODQ
)D[RQ$OLFLD$Q,QWHUSUHWDWLRQRI5RGLQ
Vµ$GDP¶0HWURSROLWDQ0XVHXP-RXUQDO
SS3ULQW
*OXHFN*UDFH
7HOOLQJ7DOHV,,
5HOLJLRXV,PDJHVLQWK&HQWXU\$FDGHPLF$UW
1HZ
<RUN7LPHVVHF$UW,Q5HYLHZ3ULQW
*ROGZDWHU6\PEROLVP1HZ<RUN+DUSHU5RZ3XEOLVKHUV3ULQW
+DUULVRQ&KDUOHVDQG3DXO:RRGHGV$UWLQ7KHRU\$Q$QWKRORJ\RI&KDQJLQJ
,GHDV%ODFNZHOO3XEOLVKHUV/WG3ULQW
+DUULVRQ&KDUOHVDQG3DXO:RRGHGV$UWLQ7KHRU\$Q$QWKRORJ\RI&KDQJLQJ
,GHDV%ODFNZHOO3XEOLVKHUV/WG3ULQW
+DWW0LFKDHODQG&KDUORWWH.ORQN$UW+LVWRU\$&ULWLFDO,QWURGXFWLRQWRLWV0HWKRGV8QLWHG
.LQJGRP0DQFKHVWHU8QLYHUVLW\3UHVV3ULQW
+LJRQQHW$QQH0\WKVRI&UHDWLRQ&DPLOOH&ODXGHODQG$XJXVWH5RGLQ6LJQLILFDQW2WKHUV
&UHDWLYLW\DQG,QWLPDWH3DUWQHUVKLS(GV:KLWQH\&KDGZLFNDQG,VDEHOOH'H&RXUWLYURQ
3ULQW
-DPHV0HUOLQ,QJOL5HYLHZ&DPLOOH&ODXGHO3DULV0XVpH5RGLQ7KH%XUOLQJWRQ
0DJD]LQHSS3ULQW
-DQVRQ+:WK&HQWXU\6FXOSWXUH1HZ<RUN+DUU\1$EUDPV,QFRUSRUWDWHG3ULQW
-XPHDX/DIRQG-HDQ'DYLG©&DPLOOH&ODXGHOª7KH$UW7ULEXQH:HE0D\
KWWSZZZWKHDUWWULEXQHFRP&DPLOOH&ODXGHOKWPO
.DQGLQVN\:DVVLO\&RQFHUQLQJWKH6SLULWXDOLQ$UW7UDQ07+6DGOHU1HZ<RUN'RYHU
3XEOLFDWLRQV3ULQW
.HUU-RQDWKDQ&DPLOOH&3DULV/
DYDQWVFqQHWKpkWUH3ULQW
.XVSLW'RQDOG³)DOOLQJ$SDUW$QG+ROGLQJ7RJHWKHU.DQGLQVN\¶V'HYHORSPHQW´$UW
&ULWLFLVP$UW)XOO7H[W+::LOVRQ:HE)HE
/DUNLQ0DXULFH-07KH&KXUFKDQGWKH)UHQFK&RQFRUGDWWR7KH(QJOLVK
+LVWRULFDO5HYLHZSS3ULQW
/D\WRQ&KDUPDJQH³6LQXRXV'UDSHU\DQG6H[XDO'LIIHUHQFH)HPLQLQH&UHDWLRQDQG0DOH
)HPDOH5HFLSURFLW\LQWKH:RUNRI&DPLOOH&ODXGHO´3ULQW%ULJKDP<RXQJ
8QLYHUVLW\
/H1RUPDQG5RPDLQ$QWRLQHWWH&DPLOOH&ODXGHO5RGLQ7LPH:LOO+HDO(YHU\WKLQJ(GV
(GZLJH5LGHO$QQLH&ODXGH'HPDJQ\DQG9LQFHQW%URFYLHOOHVWHG3DULV(GLWLRQVGX
PXVpH5RGLQ3ULQW
/HURXH35RVHQEDXP'RQGDLQH&/
LPDJHGHSLHWHHQ)UDQFH5HYXH
GHO
KLVWRLUHGHVUHOLJLRQV
/LSVH\5RJHU$Q$UWRIRXU2ZQ7KH6SLULWXDOLQ7ZHQWLHWK&HQWXU\$UW0DVVDFKXVHWWV
6KDPEKDOD3XEOLFDWLRQV3ULQW
0DGHOLQ2OLYLHU/¶H[WDVHHW/¶DJRQLH/H)LJDURKRUVVpULH
0LWFKHOO&ODXGLQH,QWHOOHFWXDOLW\DQG6H[XDOLW\&DPLOOH&ODXGHOWKH)LQ'H6LqFOH
6FXOSWUHVV$UW+LVWRU\3ULQW
0RUpDV-HDQ6\PEROLVW0DQLIHVWR7UDQ/LV]W&:HE-DQXDU\
KWWSZZZPXWDEOHVRXQGFRPKRPH"S 0XVpH0DUPRWWDQ0RQHW&DPLOOH&ODXGHO7UDQ3DULV/HSVLH/DQJXDJHV9ROUXH/RXLV
%RLOO\3DULV/HV(GLWLRQVGX0XVpH0DUPRWWRDQ0RQHW3ULQW
3LFDQGHW$QQH+LVWRLUHGHODSHWLWHFKkWHODLQH:HEKWWSZZZURXEDL[
ODSLVFLQHFRPSXEOLFDWLRQVODSHWLWHFKDWHODLQHKWPO!
3LQJHRW$QQH/H&KHIG
2HXYUH'H&DPLOOH&ODXGHO/¶ÆJH0€U5HYXHGX/RXYUHHWGHV
0XVpHVGH)UDQFHQR3ULQW
5LYLqUH$QQH%UXQR*DXGLFKRQDQG'DQLHOOH*KDQDVVLD&DPLOOH&ODXGHO&DWDORJXH
5DLVRQQpHHG3DULV6RFLpWpQRXYHOOH$GDP%LUR3ULQW
5LYLqUH$QQHDQG%UXQR*DXGLFKRQHGV&DPLOOH&ODXGHO&RUUHVSRQGDQFHQGHG)UDQFH
*DOOLPDUG3ULQW
6KRZDOWHU(ODLQH7KH)HPDOH0DODG\:RPHQ0DGQHVVDQG&XOWXUHLQ(QJODQG
1HZ<RUN1HZ<RUN3DQWKHRQ%RRNV3ULQW
6LOYHUPDQ'HERUD$UW1RXYHDXLQ)LQ'H6LHFOH)UDQFH3ROLWLFV3V\FKRORJ\DQG6W\OH
&DOLIRUQLD8QLYHUVLW\RI&DOLIRUQLD3UHVV3ULQW
6LOYHUPDQ'HERUD9DQ*RJKDQG*DXJXLQ7KH6HDUFKIRU6DFUHG$UW)DUUDU6WUDXVDQG
*LURX[3ULQW
7DKLQFL$QQD&DPLOOH&ODXGHO)URP6HOI,PDJHWR6HOI'HVWUXFW6FXOSWXUH5HYLHZ
3ULQW
7DVVHW-HDQ0DULH1DLVVDQFHG¶XQP\WKH/H)LJDURKRUVVpULH
7KRPDV+LOODU\&ORWKR6HSWHPEHU:HE
KWWSZZZSDQWKHRQRUJDUHDVP\WKRORJ\HXURSHJUHHNDUWLFOHVKWPO!
9LODLQ-DFTXHV&DPLOOH&ODXGHO(G3DULV0XVpH5RGLQ3DULV,5/,PSULPHULHV5pXQLHV
/DXVDQQHVD3ULQW
9DQ6WUDWHQ5RHORI3DQRIVN\DQG,&21&/$66$UWLEXVHW+LVWRULDHSS
3ULQW
9LQFHQW9DQ*RJK/HWWHUWR7KHR9DQ*RJK:ULWWHQF'HFHPEHULQ(WWHQ
7UDQVODWHGE\0UV-RKDQQD9DQ*RJK%RQJHUHGLWHGE\5REHUW+DUULVRQQXPEHU
85/KWWSZHEH[KLELWVRUJYDQJRJKOHWWHUKWP
:LWKHUHOO/RXLVH5&DPLOOH&ODXGHO5HGLVFRYHUHG:RPDQ
V$UW-RXUQDOSS
3ULQW