SlideShare a Scribd company logo
BBBBBBBBBBBBBBBBBBBBBBBBB
12
BBBBBBBBBBBBBBBBBBBBBBBBB
,1 7+( 81,7(' 67$7(6 &2857 2) $33($/6
)25 7+( 1,17+ &,5&8,7
BBBBBBBBBBBBBBBBBBBBBBBBB
721< .25$% HW DO
3ODLQWLIIV $SSHOOHHV
Y
3$75,&,$ 0F0$1$0$1 LQ KHU RIILFLDO FDSDFLW DV 'LUHFWRU RI WKH 6WDWH RI
+DZDLµL 'HSDUWPHQW RI +XPDQ 6HUYLFHV DQG
.(11(7+ ),1. LQ KLV RIILFLDO FDSDFLW DV 6WDWH RI +DZDLµL 'HSDUWPHQW RI
+XPDQ 6HUYLFHV 0HG 48(67 'LYLVLRQ $GPLQLVWUDWRU
'HIHQGDQWV $SSHOODQWV
BBBBBBBBBBBBBBBBBBBBBBBBB
$0,&, &85,$( %5,() 2) 7+( -$3$1(6( $0(5,&$1 &,7,=(16
/($*8( +212/8/8 &+$37(5 7+( 1$7,21$/ $662&,$7,21 )25
7+( $'9$1&(0(17 2) &2/25(' 3(23/( +212/8/8 %5$1&+
$1' .2.8$ .$/,+, 9$//(< &2035(+(16,9( )$0,/< 6(59,&(6
,1 6833257 2) 3/$,17,))6 $33(//((6
BBBBBBBBBBBBBBBBBBBBBBBBB
2Q $SSHDO IURP WKH ,QWHUORFXWRU 2UGHU *UDQWLQJ D 3UHOLPLQDU ,QMXQFWLRQ RI WKH
8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH 'LVWULFW RI +DZDLµL
&DVH 1R ' & 1R FY -06 .6&
BBBBBBBBBBBBBBBBBBBBBBBBB
6XVDQ . 6HUUDQR
(ULF . <DPDPRWR
'LQD 6KHN
'ROH 6WUHHW
+RQROXOX +,
$WWRUQHV IRU $PLFL &XULDH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 1 of 40
LL
7$%/( 2) &217(176
7$%/( 2) $87+25,7,(6 LY
,17(5(67 2) $0,&,
$5*80(17
, 6LQFH :RUOG :DU ,, 0LFURQHVLDQV 6XIIHUHG *UDYH ,QMXVWLFHV 7KDW
+DYH 'HFLPDWHG .H 3DUWV RI WKH 6RFLDO DQG (FRQRPLF 6WUXFWXUH RI
7KHLU +RPHODQGV 6LJQLILFDQWO 'DPDJHG WKH +HDOWK RI 0DQ DQG
&RPSHOOHG 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI $GHTXDWH
+HDOWKFDUH
,, 7KH 0XOWLIDFHWHG 'DPDJHV WR &2)$ 5HVLGHQWV $UH ([DFHUEDWHG %
WKH 8QLWHG 6WDWHV¶ %UHDFK RI LWV 'XW WR 3URPRWH 0LFURQHVLDQ 6HOI
6XIILFLHQF DQG % LWV &RQWLQXLQJ )DLOXUH WR 'LVFKDUJH LWV
$FNQRZOHGJHG 5HVSRQVLELOLW WR 5HSDLU WKH 'DPDJH
$ 7KH &2)$ 5HVLGHQWV¶ 3RRU +HDOWK LV /LQNHG WR WKH 8QLWHG
6WDWHV¶ %UHDFK RI LWV 7UXVW DQG &RPSDFW 'XWLHV WR 3URPRWH
0LFURQHVLDQ :HOIDUH DQG $GYDQFHPHQW DQG WR WKH
0LFURQHVLDQV¶ 5HVXOWLQJ (FRQRPLF 'HSHQGHQF DQG
$FTXLHVFHQFH WR D 'DPDJLQJ 8QLWHG 6WDWHV 0LOLWDU DQG
1XFOHDU 3UHVHQFH 7KDW 6HUYHV 8 6 ,QWHUHVWV
% 7KURXJK WKH &2)$ WKH 8QLWHG 6WDWHV KDV 3DUWLDOO $WWHPSWHG
WR 5HSDLU WKH 'DPDJH %XW ,W +DV )DLOHG WR 'LVFKDUJH 7KLV
5HVSRQVLELOLW DQG ,Q 6RPH :DV ,WV 3DUWLDO $PHOLRUDWLYH
(IIRUWV +DYH :RUVHQHG WKH 6LWXDWLRQ IRU 0LFURQHVLDQV LQ 7KHLU
+RPHODQGV &DXVLQJ 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI
+HDOWK &DUH
,,, $V D &RQVWLWXHQW 0HPEHU RI WKH 8QLWHG 6WDWHV DQG $V 5HFLSLHQW RI
6XEVWDQWLDO )HGHUDO 'ROODUV WR &RYHU WKH ,PSDFWV RI &2)$ 5HVLGHQWV
,QFOXGLQJ +HDOWK 1HHGV WKH 6WDWH RI +DZDL‫ދ‬L %HDUV -RLQW
5HVSRQVLELOLW IRU 0LFURQHVLDQV LQ +DZDL‫ދ‬L IRU 'HVSHUDWHO 1HHGHG
2IWHQ /LIH 2U 'HDWK 0HGLFDO &DUH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 2 of 40
LLL
,9 ,Q /LJKW RI WKH 6WDWH¶V %URDGHU &RPPLWPHQW WR 5HSDLULQJ 8QMXVW
'DPDJH WR &RPPXQLW 0HPEHUV IRU WKH %HQHILW RI $OO WKH 6WDWH
%HDUV D 0RUDO $V :HOO $V /HJDO 5HVSRQVLELOLW WR &RQWLQXH D
0HDQLQJIXO /HYHO RI 0HGLFDO &DUH &RYHUDJH IRU 0LFURQHVLDQV
$ 3URYLGLQJ )LQDQFLDO 6XSSRUW IRU &2)$ 5HVLGHQWV¶ 0HGLFDO
&DUH LV D 0RUDO 2EOLJDWLRQ WKDW )XUWKHUV +DZDLµL¶V
&RPPLWPHQW WR -XVWLFH IRU &RPPXQLW 0HPEHUV
% 'LVFKDUJLQJ WKH 6WDWH¶V 5HVSRQVLELOLW :LOO 3URSHUO %DODQFH
WKH (TXLWLHV LQ )DYRU RI WKH 0LFURQHVLDQ 3HRSOH DQG :LOO
)XUWKHU WKH 3XEOLF ,QWHUHVW
&21&/86,21
&(57,),&$7( 2) &203/,$1&(
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 3 of 40
LY
7$%/( 2) $87+25,7,(6
&$6(6
,QGHS /LYLQJ &WU RI 6 &DOLIRUQLD ,QF Y 0D[ZHOO -ROO
) G WK &LU
-XGD Y 8 6 &O &W
3HRSOH RI %LNLQL Y 8 6 )HG &O
DII¶G ) G )HG &LU
3HRSOH RI (QHZHWDN Y 8QLWHG 6WDWHV ) G )HG &LU
6WDWH Y 0DNZDQDQH %&/5 && 6 $IU
67$787(6
8 6 & †
8 6 & †
8 6 & †
&RPSDFW RI )UHH $VVRFLDWLRQ 8 6 0LFURQHVLD 0DUVKDOO ,VODQGV
3XE / 1R 6WDW
FRGLILHG DV DPHQGHG 8 6 & †
&RPSDFW RI )UHH $VVRFLDWLRQ 8 6 3DODX
3XE / 1R 6WDW
FRGLILHG DV DPHQGHG 8 6 & †
&RPSDFW RI )UHH $VVRFLDWLRQ ZLWK 0LFURQHVLD DQG WKH 0DUVKDOO ,VODQGV
3XE / 1R 6WDW
FRGLILHG DV DPHQGHG 8 6 & †
7UXVWHHVKLS $JUHHPHQW IRU WKH )RUPHU -DSDQHVH 0DQGDWHG ,VODQGV
-XO 6WDW
+DZ 5HY 6WDW †
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 4 of 40
Y
27+(5 $87+25,7,(6
&RQJ 5HF ( ( QG &RQJ GDLO HG 0DU
VWDWHPHQW RI +RQ (QL ) + )DOHPDYDHJD
&RQJ 5HF 6 6 WK &RQJ GDLO HG -DQ
VWDWHPHQW RI 6HQ -HII %LQJDPDQ
$JUHHPHQW %HWZHHQ WKH *RYHUQPHQW RI WKH 8QLWHG 6WDWHV DQG WKH
*RYHUQPHQW RI WKH 0DUVKDOO ,VODQGV IRU WKH ,PSOHPHQWDWLRQ
RI 6HFWLRQ RI WKH &RPSDFW RI )UHH $VVRFLDWLRQ
-XOLDQ $JXRQ 2WKHU $UPV 7KH 3RZHU RI D 'XDO 5LJKWV /HJDO
6WUDWHJ IRU WKH &KDPRUX 3HRSOH RI *XDP 8VLQJ WKH 'HFODUDWLRQ
RQ WKH 5LJKWV RI ,QGLJHQRXV 3HRSOHV LQ 8 6 &RXUWV
8 +DZ / 5HY
+ROO 0 %DUNHU %UDYR IRU WKH 0DUVKDOOHVH
5HJDLQLQJ &RQWURO LQ D 3RVW 1XFOHDU 3RVW &RORQLDO :RUOG
&KDG %ODLU +DZDLL &RQJUHVVLRQDO 5HSV WR )HGV
+HOS 8V &XUE 0LFURQHVLDQV +RQ &LYLO %HDW 0D
0DWWKHZ (LOHQEHUJ $PHULFDQ 3ROLF LQ 0LFURQHVLD
- RI 3DF +LVW
+DZDLµL 8QLQVXUHG 3URMHFW +DZDLµL ,QVWLWXWH IRU 3XEOLF $IIDLUV
,PSDFWV RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ RQ +DZDLµL¶V
+HDOWK &DUH 6VWHP
=RKO Gp ,VKWDU $ 6XUYLYRU¶V :DUQLQJ RQ 1XFOHDU &RQWDPLQDWLRQ
3DF (FRORJLVW
'DUOHQH .HMX -RKQVRQ )RU WKH *RRG RI 0DQNLQG
6HDWWOH - 6RF -XVW
&DWKHULQH /XW] 7KH &RPSDFW RI )UHH $VVRFLDWLRQ
0LFURQHVLDQ 1RQ ,QGHSHQGHQFH DQG 8 6 3ROLF
%XOO RI &RQFHUQHG $VLDQ 6FK
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 5 of 40
YL
'RQDOG ) 0F+HQU 0LFURQHVLD 7UXVW %HWUDHG ±
$OWUXLVP YV 6HOI ,QWHUHVW LQ $PHULFDQ )RUHLJQ 3ROLF
-RKQ % 0HWHOVNL 0LFURQHVLD DQG )UHH $VVRFLDWLRQ
&DQ )HGHUDOLVP 6DYH 7KHP" &DO : ,QW¶O / -
3DWV 7 0LQN 0LFURQHVLD 2XU %XQJOHG 7UXVW
7H[ ,QW¶O / )
1DWLRQDO &DQFHU ,QVWLWXWH 'LYLVLRQ RI &DQFHU (SLGHPLRORJ DQG
*HQHWLFV 1DWLRQDO ,QVWLWXWHV RI +HDOWK 'HSDUWPHQW RI +HDOWK
DQG +XPDQ 6HUYLFHV (VWLPDWLRQ RI WKH %DVHOLQH 1XPEHU RI &DQFHUV
$PRQJ 0DUVKDOOHVH DQG WKH 1XPEHU RI &DQFHUV $WWULEXWDEOH
WR ([SRVXUH WR )DOORXW IURP 1XFOHDU :HDSRQV 7HVWLQJ
&RQGXFWHG LQ WKH 0DUVKDOO ,VODQGV
1XFOHDU &ODLPV 7ULEXQDO 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV
KWWS ZZZ QXFOHDUFODLPVWULEXQDO FRP
2YHUVLJKW RQ WKH &RPSDFW RI )UHH $VVRFLDWLRQ ZLWK WKH 5HSXEOLF
RI WKH 0DUVKDOO ,VODQGV 50, +HDULQJ %HIRUH WKH 6XEFRPP
RQ $VLD WKH 3DFLILF DQG WKH *OREDO (QYLURQPHQW RI WKH + &RPP
RQ )RUHLJQ $IIDLUV WK &RQJ VWDWHPHQW RI
-RQDWKDQ 0 :HLVJDOO /HJDO &RXQVHO IRU WKH 3HRSOH RI %LNLQL
$QQ 0 3REXWVN HW DO 0LFURQHVLDQ 0LJUDQW +HDOWK ,VVXHV LQ +DZDLµL
3DUW $Q $VVHVVPHQW RI +HDOWK /DQJXDJH DQG .H 6RFLDO
'HWHUPLQDQWV RI +HDOWK &DO - RI +HDOWK 3URPRWLRQ
6KHOGRQ 5LNORQ 0 ' HW DO 7KH ³&RPSDFW ,PSDFW´ LQ +DZDLµL
)RFXV RQ +HDOWK &DUH +DZDLµL 0HG - -XQH
(GLEHUWR 5RPiQ 7KHURQ 6LPPRQV 0HPEHUVKLS 'HQLHG
6XERUGLQDWLRQ DQG 6XEMXJDWLRQ 8QGHU 8QLWHG 6WDWHV ([SDQVLRQLVP
6DQ 'LHJR / 5HY
$DURQ 6DXQGHUV HW DO +HDOWK DV D +XPDQ 5LJKW :KR LV (OLJLEOH"
+DZDLµL 0HG - -XQH
6WDWH RI +DZDL‫ދ‬L 'HSDUWPHQW RI WKH $WWRUQH *HQHUDO
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 6 of 40
YLL
)LQDO 5HSRUW RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ 7DVN )RUFH
8 6 &HQVXV %XUHDX )LQDO 5HSRUW (VWLPDWHV RI &RPSDFW RI
)UHH $VVRFLDWLRQ &2)$ 0LJUDQWV $SULO
8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 7
&RPSDFW RI )UHH $VVRFLDWLRQ $Q $VVHVVPHQW RI WKH $PHQGHG
&RPSDFWV DQG 5HODWHG $JUHHPHQWV
8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2
&RPSDFWV RI )UHH $VVRFLDWLRQ 'HYHORSPHQW 3URVSHFWV
5HPDLQ /LPLWHG IRU 0LFURQHVLD DQG 0DUVKDOO ,VODQGV
8 6 *RY¶W $FFRXQWDELOLW 2IILFH 7 16,$' 5&('
)RUHLJQ $VVLVWDQFH 8 6 )XQGV WR 7ZR 0LFURQHVLDQ 1DWLRQV
+DG /LWWOH ,PSDFW RQ (FRQRPLF 'HYHORSPHQW DQG $FFRXQWDELOLW
2YHU )XQGV :DV /LPLWHG
8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 )RUHLJQ 5HODWLRQV
.ZDMDOHLQ $WROO ,V WKH .H 8 6 'HIHQVH ,QWHUHVW LQ 7ZR
0LFURQHVLDQ 1DWLRQV
8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 )RUHLJQ 5HODWLRQV
0LJUDWLRQ )URP 0LFURQHVLDQ 1DWLRQV +DV +DG 6LJQLILFDQW
,PSDFW RQ *XDP +DZDLL DQG WKH &RPPRQZHDOWK RI WKH
1RUWKHUQ 0DULDQD ,VODQGV
8 6 *RYHUQPHQW 6XUYH 0LVVLRQ WR WKH 7UXVW 7HUULWRU
RI WKH 3DFLILF ,VODQGV 5HSRUW WR WKH 3UHVLGHQW $ 6RORPRQ 2FW
8 6 0LVVLOH 7HVW 'HDO 2IIHUV +RSH WR 0DUVKDOOV 6OXP
$*(1&( )5$1&( 35(66( 0D
6HLML <DPDGD 0 ' &DQFHU 5HSURGXFWLYH $EQRUPDOLWLHV
DQG 'LDEHWHV LQ 0LFURQHVLD 7KH (IIHFW RI 1XFOHDU 7HVWLQJ
3DF +HDOWK 'LDORJ
(ULF . <DPDPRWR 5DFH $SRORJLHV
- *HQGHU 5DFH -XVW
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 7 of 40
,17(5(67 2) $0,&,
7KH -DSDQHVH $PHULFDQ &LWL]HQV /HDJXH +RQROXOX &KDSWHU -$&/
+RQROXOX D FLYLO ULJKWV RUJDQL]DWLRQ GUDZV IURP WKH OHJDF RI WKH XQMXVW
LQFDUFHUDWLRQ RI -DSDQHVH $PHULFDQV GXULQJ :RUOG :DU ,, DQG VWULYHV WR SURWHFW WKH
FLYLO DQG KXPDQ ULJKWV RI DOO $V DQ $VLDQ 3DFLILF $PHULFDQ RUJDQL]DWLRQ ZLWK
FRQFHUQ IRU WKH IDLU WUHDWPHQW RI 3DFLILF ,VODQGHUV WKH -$&/ +RQROXOX VWDQGV
DORQJVLGH WKH 0LFURQHVLDQ SHRSOH WR KHOS HQVXUH WKHLU XQLTXH UHODWLRQVKLSV ZLWK WKH
8QLWHG 6WDWHV DQG WKH 6WDWH RI +DZDLµL DUH KRQRUHG
7KH 1DWLRQDO $VVRFLDWLRQ IRU WKH $GYDQFHPHQW RI &RORUHG 3HRSOH
1$$&3 D QRQ SURILW DQG QRQ SDUWLVDQ RUJDQL]DWLRQ LV WKH QDWLRQ¶V ROGHVW DQG
ODUJHVW FLYLO ULJKWV RUJDQL]DWLRQ )URP WKH EDOORW ER[ WR WKH FODVVURRP WKH 1$$&3
ZRUNV FROODERUDWLYHO ZLWK RWKHU FLYLO ULJKWV RUJDQL]DWLRQV WR HQVXUH WKH SROLWLFDO
HGXFDWLRQDO VRFLDO DQG HFRQRPLF HTXDOLW RI ULJKWV RI DOO SHUVRQV DQG WR HOLPLQDWH
UDFH EDVHG GLVFULPLQDWLRQ
.RNXD .DOLKL 9DOOH &RPSUHKHQVLYH )DPLO 6HUYLFHV ..9 LV D QRQ SURILW
FRPPXQLW KHDOWK FHQWHU VHUYLQJ WKH UHVLGHQWV RI .DOLKL 9DOOH +RQROXOX )RUPHG
LQ LQ UHVSRQVH WR WKH DEVHQFH RI DFFHVVLEOH DQG DSSURSULDWH KHDOWK VHUYLFHV IRU
WKH YDOOH¶V JURZLQJ $VLDQ DQG 3DFLILF ,VODQG LPPLJUDQW SRSXODWLRQV ..9
SURYLGHV FRPSUHKHQVLYH PHGLFDO DQG FRPPXQLW KHDOWK VHUYLFHV WR
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 8 of 40
UHVLGHQWV RI GLYHUVH DQFHVWU LQFOXGLQJ D IDVW JURZLQJ 0LFURQHVLDQ SDWLHQW
SRSXODWLRQ
3XUVXDQW WR &LUFXLW 5XOH DOO SDUWLHV KDYH FRQVHQWHG WR WKH ILOLQJ RI WKLV EULHI
1R SDUW¶V FRXQVHO DXWKRUHG WKLV EULHI LQ ZKROH RU LQ SDUW QR SDUW RU SDUW¶V
FRXQVHO FRQWULEXWHG PRQH WKDW ZDV LQWHQGHG WR IXQG SUHSDULQJ RU VXEPLWWLQJ WKH
EULHI DQG QR SHUVRQ RWKHU WKDQ WKH DPLFL FXULDH LWV PHPEHUV RU LWV FRXQVHO
FRQWULEXWHG PRQH WKDW ZDV LQWHQGHG WR IXQG SUHSDULQJ RU VXEPLWWLQJ WKH EULHI
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 9 of 40
$5*80(17
7KLV FDVH LV XQLTXH ,W LV QRW DERXW VWDWH EHQHILWV IRU LPPLJUDQWV 1RU LV LW
DERXW ZHOIDUH IRU WKRVH LQ QHHG 5DWKHU LW LV DERXW UHSDLULQJ WKH SHUVLVWLQJ GDPDJH
RI LQMXVWLFH XQLTXHO VXIIHUHG E WKH SHRSOH RI WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD
)60 WKH 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV 50, DQG WKH 5HSXEOLF RI 3DODX
3DODX ± SHRSOH ZLWK ZKRP WKH 8QLWHG 6WDWHV DQG 6WDWH RI +DZDL‫ދ‬L KDYH D ORQJ
VWDQGLQJ VSHFLDO UHODWLRQVKLS
$V WUXVWHH IRU WKH 7UXVW 7HUULWRU RI WKH 3DFLILF ,VODQGV WKH 8QLWHG 6WDWHV LQ
WKH ODWH V DQG V OHWKDOO SXUVXHG LWV RZQ LQWHUHVW E WHVWLQJ QXFOHDU ERPEV
RQ VHOHFW 3DFLILF LVODQGV GHYDVWDWLQJ QRW RQO WKH 0DUVKDOOHVH KRPHODQGV EXW DOVR
WKH KHDOWK RI WKH 0DUVKDOOHVH DQG 0LFURQHVLDQ SHRSOH IRU HQVXLQJ GHFDGHV 7KH
8 6 DOVR EUHDFKHG LWV DFNQRZOHGJHG WUXVW GXW E IDLOLQJ WR SURPRWH 0LFURQHVLDQ
VHOI VXIILFLHQF DQG LQGHSHQGHQFH DQG LQVWHDG E IRVWHULQJ HFRQRPLF DQG
KHDOWKFDUH GHSHQGHQF RQ WKH 8 6 LQ RUGHU WR VHFXUH 0LFURQHVLDQ DFTXLHVFHQFH WR
FRQWLQXHG 8 6 PLOLWDU DQG QXFOHDU SUHVHQFH RQ WKH LVODQGV 2QH FRQVHTXHQFH RI
WKHVH EUHDFKHV WKH QHHG RI 0LFURQHVLDQV WR PLJUDWH WR +DZDLµL DQG HOVHZKHUH LQ
VHDUFK RI GHVSHUDWHO QHHGHG KHDOWK FDUH IRU VHYHUH PHGLFDO FRQGLWLRQV
7KLV EULHI XVHV ³0LFURQHVLDQ ´ ³&2)$ UHVLGHQWV´ RU ³&2)$ PLJUDQWV´ WR
LQFOXGH DOO &2)$ QDWLRQ PLJUDQWV LQFOXGLQJ SHRSOHV IURP WKH )60 50, DQG
3DODX ,W DOVR IRFXVHV SULPDULO RQ WKH )60 DQG 50, ZKLOH 3DODXDQV DUH DOVR
DIIHFWHG E WKH 6WDWH¶V DFWLRQV WKHUH DUH IHZHU 3DODXDQV LPSDFWHG E WKH LVVXHV
DGGUHVVHG
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 10 of 40
,Q UHFRJQLWLRQ RI WKHVH LQMXVWLFHV DV SDUW RI LWV &RPSDFWV RI )UHH $VVRFLDWLRQ
&2)$ ZLWK WKH 0LFURQHVLDQ JRYHUQPHQWV LQ WKH 8QLWHG 6WDWHV FRPPLWWHG
WR UHSDLU WKH SHUVLVWLQJ GDPDJH LQFOXGLQJ DOORZLQJ 0LFURQHVLDQ SHRSOH WR
³HVWDEOLVK UHVLGHQFH´ LQ +DZDL‫ދ‬L DQG RWKHU VWDWHV DQG WHUULWRULHV ³DV QRQ
LPPLJUDQWV ´ $QG PDQ KDYH WUDYHOHG WR WKHVH SODFHV WR UHFHLYH DPRQJ RWKHU
WKLQJV QHHGHG PHGLFDO FDUH %XW LQ WKH 8 6 SHUSHWXDWHG WKH LQMXVWLFHV E
WHUPLQDWLQJ 0HGLFDLG IXQGLQJ IRU 0LFURQHVLDQ SHRSOH
7KH 6WDWH RI +DZDLµL DV D FRQVWLWXHQW PHPEHU RI WKH 8 6 EHDUV MRLQW
UHVSRQVLELOLW IRU 0LFURQHVLDQV LQ +DZDL‫ދ‬L ZKR DUH QRW LPPLJUDQWV IRU RIWHQ OLIH
RU GHDWK PHGLFDO FDUH 7KH 6WDWH¶V UHVSRQVLELOLW VWDQGV RQ WZR OHJV
)LUVW WKH 6WDWH¶V UHVSRQVLELOLW OLHV LQ LWV DFFHSWDQFH RI IHGHUDO IXQGV
SDUWLDOO IRU 0LFURQHVLDQ KHDOWK FDUH DV SDUW RI WKH 8QLWHG 6WDWHV¶ MXVWLFH
FRPPLWPHQW WR WKH 0LFURQHVLDQ SHRSOH 7R LWV FUHGLW ZKHQ WKH IHGHUDO
JRYHUQPHQW WHUPLQDWHG 0HGLFDLG FRYHUDJH IRU 0LFURQHVLDQ SHRSOH WKH 6WDWH
LQLWLDOO VWHSSHG XS WR DVVXUH WKH SURPLVHG DQG QHHGHG PHGLFDO FDUH +DZDLµL
UHFHLYHG RYHU PLOOLRQ VLQFH LQ SDUW DV FRPSHQVDWLRQ IRU FRVWV RI KHDOWK
FDUH IRU 0LFURQHVLDQV ,W FRQWLQXHV WR UHFHLYH IHGHUDO IXQGV HYHQ WKRXJK WKRVH
IXQGV GR QRW IXOO FRYHU KHDOWK FRVWV /LNH PRVW RI WKH UHVW RI XV PDQ
0LFURQHVLDQV LQ +DZDLµL SD 6WDWH WD[HV DQG SURGXFWLYHO FRQWULEXWH WR WKH 6WDWH¶V
HFRQRP 7KH 6WDWH WKXV EHDUV MRLQW UHVSRQVLELOLW WR SURYLGH D PHDQLQJIXO OHYHO RI
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 11 of 40
KHDOWK FDUH FRYHUDJH SDUWLFXODUO IRU WKRVH ZLWK OLIH WKUHDWHQLQJ FDQFHU DGYDQFHG
GLDEHWHV NLGQH IDLOXUH DQG KHDUW GLVHDVH 0RUH VSHFLILFDOO DQG GLUHFWO UHOHYDQW
WR WKH LQVWDQW FDVH WKH 6WDWH EHDUV WKH UHVSRQVLELOLW QRW WR H[FOXGH 0LFURQHVLDQ
PLJUDQWV ± DQG RQO 0LFURQHVLDQ PLJUDQWV ± IURP QHHGHG KHDOWK FDUH FRYHUDJH LQ
+DZDL‫ދ‬L
6HFRQG WKH PRUDO JURXQGLQJ IRU WKH 6WDWH¶V MRLQW UHVSRQVLELOLW WR
0LFURQHVLDQV OLHV LQ WKH 6WDWH¶V FRPPLWPHQW WKURXJK ODZ WR WKH LGHD WKDW ³HDFK
SHUVRQ LV LPSRUWDQW WR HYHU RWKHU SHUVRQ IRU >RXU@ FROOHFWLYH H[LVWHQFH ´ 6HH +DZ
5HY 6WDW † D E 7KDW FRPPLWPHQW HPHUJHV RXW RI WKH +DZDLµL
OHJLVODWXUH¶V GLUHFWLYH WR MXGJHV OHJLVODWRUV DQG JRYHUQPHQW DGPLQLVWUDWRUV WKDW
³>L@Q H[HUFLVLQJ WKHLU SRZHU RQ EHKDOI RI WKH SHRSOH DQG LQ IXOILOOPHQW RI WKHLU
UHVSRQVLELOLWLHV´ WKH FRQWHPSODWH WKH LGHD RI ³$ORKD´ DQG DFW WR SURPRWH ³WKH
HVVHQFH RI UHODWLRQVKLSV LQ ZKLFK HDFK SHUVRQ LV LPSRUWDQW WR HYHU RWKHU SHUVRQ IRU
FROOHFWLYH H[LVWHQFH ´ ,G +DZDL‫ދ‬L ODZ WKXV LQVWUXFWV GHFLVLRQPDNHUV WR HPEUDFH
WKH YDOXH WKDW RXU ³FROOHFWLYH H[LVWHQFH´ DV DQ LVODQG FRPPXQLW GHSHQGV XSRQ RXU
IDLU WUHDWPHQW RI ³HDFK SHUVRQ´ DPRQJ XV $QG WKLV DSSOLHV ZLWK IRUFH WR
0LFURQHVLDQV LQ +DZDLµL VHHNLQJ EDGO QHHGHG PHGLFDO FDUH WKDW LV SDUWO
DWWULEXWDEOH WR DFNQRZOHGJHG LQMXVWLFH
7KLV 6WDWH FRPPLWPHQW LV DQ H[WHQVLRQ RI WKH 6RXWK $IULFDQ FRQFHSW RI
³XEXQWX´ WKDW JXLGHG WKH 7UXWK DQG 5HFRQFLOLDWLRQ &RPPLVVLRQ¶V HIIRUWV WR KHDO WKH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 12 of 40
SHUVLVWLQJ ZRXQGV RI DSDUWKHLG QR RQH FDQ EH KHDOWK ZKHQ DQ LQ WKH FRPPXQLW
DUH VLFN ± ³8EXQWX VDV , DP KXPDQ RQO EHFDXVH RX DUH KXPDQ ,I , XQGHUPLQH
RXU KXPDQLW , GHKXPDQLVH PVHOI ´ 6HH (ULF . <DPDPRWR 5DFH $SRORJLHV
- *HQGHU 5DFH -XVW FLWDWLRQ RPLWWHG 8EXQWX WKXV
³FKDUDFWHUL]HV MXVWLFH DV FRPPXQLW UHVWRUDWLRQ ± WKH UHEXLOGLQJ RI WKH FRPPXQLW
WR >KHDO@ WKRVH KDUPHG´ DQG WR LQFOXGH WKRVH ³IRUPHUO H[FOXGHG ´ ,G 6HH DOVR
6WDWH Y 0DNZDQDQH %&/5 && DW SDUD 6 $IU ³DQ
RXWVWDQGLQJ IHDWXUH RI XEXQWX LQ D FRPPXQLW VHQVH LV WKH YDOXH LW SXWV RQ OLIH
DQG KXPDQ GLJQLW >7@KH OLIH RI DQRWKHU SHUVRQ LV DW OHDVW DV YDOXDEOH DV RQH¶V
RZQ 5HVSHFW IRU WKH GLJQLW RI HYHU SHUVRQ LV LQWHJUDO WR WKLV FRQFHSW ´
7KLV H[SUHVVHG FRPPLWPHQW RI WKH 6WDWH RI +DZDLµL DV D FRQVWLWXHQW PHPEHU
RI WKH 8QLWHG 6WDWHV DORQJ ZLWK LWV UHFHLSW RI IHGHUDO IXQGV SURYLGH OHJDO DQG
PRUDO FRUQHUVWRQHV IRU ERWK D WKH 6WDWH¶V REOLJDWLRQ WR FRQWLQXH PHGLFDO FDUH
FRYHUDJH WR 0LFURQHVLDQ SHRSOH DPRQJ XV LQ RUGHU WR SDUWLDOO UHSDLU WKH GDPDJH RI
SHUYDVLYH DQG ORQJVWDQGLQJ LQMXVWLFHV DQG E WKH GHWHUPLQDWLRQ WKDW WKH WKLUG DQG
IRXUWK SUHOLPLQDU LQMXQFWLRQ IDFWRUV ± WKH EDODQFLQJ RI HTXLWLHV DQG WKH SXEOLF
LQWHUHVW ± WLOW VKDUSO LQ IDYRU RI DIILUPLQJ WKH GLVWULFW FRXUW¶V SUHOLPLQDU
LQMXQFWLRQ
, 6LQFH :RUOG :DU ,, 0LFURQHVLDQV 6XIIHUHG *UDYH ,QMXVWLFHV 7KDW +DYH
'HFLPDWHG .H 3DUWV RI WKH 6RFLDO DQG (FRQRPLF 6WUXFWXUH RI 7KHLU
+RPHODQGV 6LJQLILFDQWO 'DPDJHG WKH +HDOWK RI 0DQ DQG &RPSHOOHG
7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI $GHTXDWH +HDOWKFDUH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 13 of 40
7KH &2)$ UHVLGHQWV ZKR ZHUH GLVHQUROOHG IURP WKHLU 6WDWH KHDOWK EHQHILWV
SURJUDPV DQG PRYHG WR WKH %DVLF +HDOWK +DZDLL %++ SODQ DUH QRW ³RUGLQDU´
LPPLJUDQWV ,Q IDFW WKH DUH QRW ³LPPLJUDQWV´ DW DOO 7KH SHRSOH WUDQVIHUUHG WR WKH
QHZ DQG VLJQLILFDQWO LQDGHTXDWH KHDOWKFDUH SODQ DUH PLJUDQWV IURP WKUHH LVODQG
QDWLRQV LQ WKH 3DFLILF 2FHDQ WKH )60 50, DQG 3DODX 8QOLNH WKH XVXDO SXVK SXOO
IDFWRUV GULYLQJ RWKHU LPPLJUDQWV WR WKH 8QLWHG 6WDWHV 0LFURQHVLDQV ZHUH
HVVHQWLDOO IRUFHG WR WKH 8 6 DIWHU GHFDGHV RI IDLOHG 8 6 WUXVWHHVKLS DQG ERWFKHG
RYHUVLJKW WKDW FRQWLQXHG ZHOO DIWHU WKH HQDFWPHQW RI WKH &2)$ DJUHHPHQWV
7KH +DZDLµL VWDWH KHDOWKFDUH VWUXJJOHV UHSUHVHQW WKH IDLOXUH RI WKH ORQJ VWDWHG DQG
VHOI GHFODUHG 8 6 REOLJDWLRQ RI SURPRWLQJ DQG VXSSRUWLQJ 0LFURQHVLDQ
LQGHSHQGHQFH DQG VHOI VXIILFLHQF $QG WKH 6WDWH FXWV WR OLIH VDYLQJ KHDOWKFDUH
VPEROL]H WKH JRYHUQPHQW¶V IDLOXUH WR IXOILOO WKLV REOLJDWLRQ
7KH 0DUVKDOOHVH LQ SDUWLFXODU VXIIHUHG WKH JUDYHVW LQMXVWLFHV )RU WZHOYH
HDUV IURP WR WKH 8QLWHG 6WDWHV H[SORGHG DWRPLF DQG KGURJHQ
ERPEV RQ %LNLQL DQG (QHZHWDN DWROOV 1LQH LVODQGV ZHUH FRPSOHWHO RU SDUWLDOO
YDSRUL]HG 6HH +HDULQJ %HIRUH WKH 6XEFRPP RQ $VLD WKH 3DFLILF DQG WKH *OREDO
(QYLURQPHQW RI WKH + &RPP RQ )RUHLJQ $IIDLUV WK &RQJ VWDWHPHQW
RI -RQDWKDQ 0 :HLVJDOO /HJDO &RXQVHO IRU WKH 3HRSOH RI %LNLQL DW
³:HLVJDOO WHVWLPRQ´ 7KH PRVW SRZHUIXO WHVW ZDV ³%UDYR ´ D ILIWHHQ PHJDWRQ
GHYLFH ± HTXLYDOHQW WR +LURVKLPD ERPEV ± GHWRQDWHG LQ DW %LNLQL DWROO
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 14 of 40
WKDW WKUHZ UDGLRDFWLYH IDOORXW RYHU QHDUO VTXDUH PLOHV ,G DW 1XFOHDU
&ODLPV 7ULEXQDO 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV
KWWS ZZZ QXFOHDUFODLPVWULEXQDO FRP ODVW YLVLWHG -XO ³1XFOHDU &ODLPV
7ULEXQDO´ 5DGLRDFWLYH DVK IHOO RQ RWKHU 1RUWKHUQ DWROOV LQFOXGLQJ 5RQJHODS DQG
8WULN ZKHUH LW HQWHUHG WKH LVODQGHUV¶ OXQJV VWXFN WR WKH FRFRQXW RLO RQ WKHLU VNLQ
DQG ZDV SODHG ZLWK DQG LQJHVWHG E FKLOGUHQ +ROO 0 %DUNHU %UDYR IRU WKH
0DUVKDOOHVH 5HJDLQLQJ &RQWURO LQ D 3RVW 1XFOHDU 3RVW &RORQLDO :RUOG
$W WKH WLPH WKH 0DUVKDOO ,VODQGV ZHUH SDUW RI D 8QLWHG 1DWLRQV 7UXVW
7HUULWRU DGPLQLVWHUHG E WKH 8QLWHG 6WDWHV ZKLFK DV VROH WUXVWHH ³KDG SOHGJHG WR
WKH 8QLWHG 1DWLRQV WR µSURWHFW WKH LQKDELWDQWV DJDLQVW WKH ORVV RI WKHLU ODQG DQG
UHVRXUFHV ¶´ :HLVJDOO WHVWLPRQ VXSUD DW
+RUULILF KHDOWK HIIHFWV LQFOXGLQJ WKURLG DQG RWKHU FDQFHUV DUH OLQNHG
GLUHFWO WR WKH QXFOHDU WHVWLQJ SURJUDP 6HH 1XFOHDU &ODLPV 7ULEXQDO VXSUD 7KH
PRVW KDUURZLQJ DQG SVFKRORJLFDOO GDPDJLQJ KHDOWK HIIHFWV ZHUH WKH ELUWK GHIHFWV
FDXVHG E WKH WHVWLQJ SDUWLFXODUO LQ ZRPHQ RQ 5RQJHODS %DUNHU VXSUD DW
7KHVH LQFOXGHG VWLOOERUQ EDELHV DQG EDELHV ERUQ ZLWKRXW UHFRJQL]DEOH KXPDQ
VKDSHV ± ZLWK VKRFNLQJ GHIRUPLWLHV OLNH DQ H[WUD KHDG RU D ODFN RI ERQHV LQ WKH
ERG ± ZKLFK WKH SHRSOH FDOO ³MHOO ILVK EDELHV ´ 6HH =RKO Gp ,VKWDU $ 6XUYLYRU¶V
:DUQLQJ RQ 1XFOHDU &RQWDPLQDWLRQ 3DF (FRORJLVW $QG DV
RI ³>D@ERXW RI WKH WKURLG FDQFHUV DQG PRUH WKDQ RQH KDOI RI FDQFHUV WR
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 15 of 40
WKH RWKHU RUJDQV DW DOO DWROOV DUH HW WR GHYHORS RU WR EH GLDJQRVHG +HQFH PRVW
RI WKH UDGLDWLRQ H[FHVV LV SURMHFWHG WR RFFXU LQ WKH FRPLQJ HDUV ´ 1DWLRQDO &DQFHU
,QVWLWXWH HW DO (VWLPDWLRQ RI WKH %DVHOLQH 1XPEHU RI &DQFHUV $PRQJ 0DUVKDOOHVH
DQG WKH 1XPEHU RI &DQFHUV $WWULEXWDEOH WR ([SRVXUH WR )DOORXW IURP 1XFOHDU
:HDSRQV 7HVWLQJ &RQGXFWHG LQ WKH 0DUVKDOO ,VODQGV
7KH VWDUN LOOQHVVHV DUH RQO RQH NLQG RI GDPDJH WR WKH 0DUVKDOOHVH -XVW DV
LPSRUWDQW LV WKH ORVV LQGHHG GHVWUXFWLRQ RI WKHLU KRPHODQGV 7KH LVODQGHUV ZHUH
IRUFLEO UHPRYHG IURP WKHLU UHVRXUFH ULFK KRPHV WR EDUUHQ DWROOV WKDW FRXOG QRW
VXSSRUW WKHP 6HH %DUNHU VXSUD DW 7KH GHSOHWLRQ DQG GLVDSSHDUDQFH RI
UHVRXUFHV QHHGHG IRU VXEVLVWHQFH DQG VXUYLYDO H[DFWHG D SURIRXQG SKVLFDO DQG
SVFKRORJLFDO WROO 'DUOHQH .HMX -RKQVRQ )RU WKH *RRG RI 0DQNLQG 6HDWWOH -
6RF -XVW :LWK QR VKHOWHUHG ILVKLQJ JURXQGV WKH SHRSOH¶V
ILVKLQJ DQG RFHDQ VNLOOV ³ZHUH UHQGHUHG XVHOHVV ´ 6HH :HLVJDOO WHVWLPRQ VXSUD DW
7KLV LQDELOLW WR VHOI VXEVLVW FRQWLQXHV WR WKH SUHVHQW ± UHORFDWHG 0DUVKDOOHVH
OLYLQJ RQ WKH QRUWKHUQ DQG RWKHU LVODQGV DUH HQWLUHO UHOLDQW RQ RXWVLGH PRVWO
SURFHVVHG IRRGV .HMX -RKQVRQ VXSUD DW
7KH 0DUVKDOOHVH ZHUH DOVR IRUFHG WR VHYHU WLHV WR WKH ODQG WKDW GHILQHG WKHLU
UHODWLRQVKLSV WR HDFK RWKHU 6HH %DUNHU VXSUD DW 7KH 0DUVKDOOHVH KDYH DQ
LQVHSDUDEOH VRFLDO FXOWXUDO DQG VSLULWXDO FRQQHFWLRQ WR WKHLU ODQG 7KH GHFLPDWLRQ
RI WKDW ODQG DQG WKHLU IRUFHG UHORFDWLRQ WR RWKHU DWROOV WKXV LQIOLFWHG GHHS HPRWLRQDO
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 16 of 40
DQG SVFKRORJLFDO ZRXQGV ± QRW MXVW RQ HDUOLHU JHQHUDWLRQV EXW DOVR RQ SUHVHQW DQG
IXWXUH JHQHUDWLRQV ZKR DUH XQDEOH WR UHWXUQ WR DQFHVWUDO KRPHODQGV EHFDXVH
UDGLDWLRQ VWLOO UHQGHUV WKHP XQLQKDELWDEOH 6HH :HLVJDOO WHVWLPRQ VXSUD DW
%DUNHU VXSUD DW
7KHVH ZLGHVSUHDG DQG ORQJ ODVWLQJ KHDOWK HIIHFWV DUH QRW OLPLWHG WR WKH
0DUVKDOO ,VODQGV DQG DUH QRW FRQILQHG WR GLUHFW UDGLDWLRQ LQMXULHV 3KVLFLDQ 6HLML
<DPDGD ZKR WUHDWV DQG VWXGLHV WKH KHDOWK FDUH FKDOOHQJHV RI &2)$ UHVLGHQWV LQ
+DZDLµL DVVHVVHG WKDW ³*LYHQ WKH PHJDWRQQDJH RI QXFOHDU WHVWLQJ WKDW WKH 8 6
FRQGXFWHG LQ WKH 3DFLILF LW DSSHDUV SODXVLEOH WKDW H[FHVV FDQFHU ZRXOG KDYH
RFFXUUHG LQ DUHDV RI 0LFURQHVLD RWKHU WKDQ WKH 0DUVKDOO ,VODQGV ´ 6HLML <DPDGD
0 ' &DQFHU 5HSURGXFWLYH $EQRUPDOLWLHV DQG 'LDEHWHV LQ 0LFURQHVLD 7KH
(IIHFW RI 1XFOHDU 7HVWLQJ 3DF +HDOWK 'LDORJ $OVR ³>Z@KLOH
GLDEHWHV LV QRW D UDGLRJHQLF GLVHDVH DQG RWKHU FDQFHUV DUH JHQHUDOO OHVV UDGLRJHQLF
WKDQ OHXNHPLD RU WKURLG FDQFHU WKH VRFLDO DQG FXOWXUDO HIIHFWV RI QXFOHDU WHVWLQJ
VSHFLILFDOO DQG WKH VWUDWHJLF XVHV WR ZKLFK 0LFURQHVLD KDV EHHQ SXW JHQHUDOO
KDYH HDFK KDG D UROH LQ WKH VRFLDO SURGXFWLRQ RI GLVHDVH ´ ,G DW ,Q SDUW
EHFDXVH RI WKHVH HIIHFWV DV RI DQ HVWLPDWHG 0LFURQHVLDQV KDYH OHJDOO
WUDYHOHG WR +DZDLµL WR REWDLQ DPRQJ RWKHU WKLQJV QHHGHG KHDOWK FDUH 6HH 8 6
&HQVXV %XUHDX )LQDO 5HSRUW (VWLPDWHV RI &RPSDFW RI )UHH $VVRFLDWLRQ
&2)$ 0LJUDQWV $SULO DW
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 17 of 40
,, 7KH 0XOWLIDFHWHG 'DPDJHV WR &2)$ 5HVLGHQWV $UH ([DFHUEDWHG % WKH
8QLWHG 6WDWHV¶ %UHDFK RI LWV 'XW WR 3URPRWH 0LFURQHVLDQ 6HOI
6XIILFLHQF DQG % LWV &RQWLQXLQJ )DLOXUH WR 'LVFKDUJH LWV
$FNQRZOHGJHG 5HVSRQVLELOLW WR 5HSDLU WKH 'DPDJH
$ 7KH &2)$ 5HVLGHQWV¶ 3RRU +HDOWK LV /LQNHG WR WKH 8QLWHG 6WDWHV¶
%UHDFK RI LWV 7UXVW DQG &RPSDFW 'XWLHV WR 3URPRWH 0LFURQHVLDQ
:HOIDUH DQG $GYDQFHPHQW DQG WR WKH 0LFURQHVLDQV¶ 5HVXOWLQJ
(FRQRPLF 'HSHQGHQF DQG $FTXLHVFHQFH WR D 'DPDJLQJ 8QLWHG
6WDWHV 0LOLWDU DQG 1XFOHDU 3UHVHQFH 7KDW 6HUYHV 8 6 ,QWHUHVWV
,Q XQGHU WKH QHZO IRUPHG 8QLWHG 1DWLRQV WKH 0LFURQHVLDQ LVODQGV
UHJLRQ EHFDPH WKH 7UXVW 7HUULWRU RI WKH 3DFLILF ,VODQGV SDUW RI DQ ,QWHUQDWLRQDO
7UXVWHHVKLS 6VWHP HVWDEOLVKHG WR KHOS IRUPHU FRORQLHV PRYH WRZDUGV
LQGHSHQGHQFH 7KH JRDO RI WKH WUXVWHHVKLS ZDV WR SURPRWH WKH SROLWLFDO HFRQRPLF
VRFLDO DQG HGXFDWLRQDO ³DGYDQFHPHQW RI WKH LQKDELWDQWV ´ WKHLU ³VHOI VXIILFLHQF´
DQG ³KHDOWK ´ DQG WKHLU ³GHYHORSPHQW WRZDUG VHOI JRYHUQPHQW RU
LQGHSHQGHQFH ´ 7UXVWHHVKLS $JUHHPHQW IRU WKH )RUPHU -DSDQHVH 0DQGDWHG
,VODQGV DUW -XO 6WDW ³7UXVWHHVKLS $JUHHPHQW´ 7KH
8QLWHG 6WDWHV EHFDPH WKH $GPLQLVWHULQJ $XWKRULW RYHU WKH 0LFURQHVLDQ 7UXVW
UHJLRQ XQGHU WKLV PDQGDWH $ORQJ ZLWK WKHVH DVSLUDWLRQDO JRDOV WKH 7UXVW JDYH WKH
8 6 ³IXOO SRZHUV RI DGPLQLVWUDWLRQ OHJLVODWLRQ DQG MXULVGLFWLRQ RYHU WKH 7HUULWRU´
LQFOXGLQJ VZHHSLQJ PLOLWDU FRQWURO 7UXVWHHVKLS $JUHHPHQW DUW DUW 7KH
8 6 DXWKRULW ZDV XQLTXH DQG UHYHDOLQJ LQ WZR ZDV )LUVW WKH 0LFURQHVLDQ 7UXVW
UHJLRQ FDPH XQGHU WKH 8QLWHG 1DWLRQV¶ RQO 6WUDWHJLF 7UXVWHHVKLS ³D GHVLJQDWLRQ
ZKLFK FOHDUO XQGHUOLQHV WKH LPSRUWDQFH RI WKH LVODQGV DV D VWUDWHJLF PLOLWDU DUHD ´
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 18 of 40
3DWV 7 0LQN 0LFURQHVLD 2XU %XQJOHG 7UXVW 7H[ ,QW¶O / )
6HFRQG GHPRQVWUDWLQJ WKH 8QLWHG 6WDWHV¶ WLJKW FRQWURO RYHU WKH UHJLRQ WKH
WUXVWHHVKLS ZDV HVWDEOLVKHG E WKH 8 1 6HFXULW &RXQFLO ³UDWKHU WKDQ WKH *HQHUDO
$VVHPEO ZKHUH DOO RWKHU WUXVWV ZHUH DSSURYHG ´ ZKLFK PHDQW WKH 8 6 KDG ³D
SHUPDQHQW YHWR RYHU DQ FKDQJH LQ WKH VWDWXV ´ ,G
$V :RUOG :DU ,, HQGHG DQG WKH &ROG :DU EHJDQ WKH 8 6 1DY UHQHZHG LWV
LQWHUHVW LQ WKH 0LFURQHVLDQ ,VODQGV 7KH LPSRUWDQFH RI DWRPLF ZHDSRQV ZDV
REYLRXV ZRUOGZLGH DIWHU +LURVKLPD EXW WKH 8 6 PLOLWDU VWLOO KDG PXFK WR OHDUQ
DERXW WKH HIIHFWV RI WKH ERPE RQ KXPDQ EHLQJV LQIUDVWUXFWXUH DQG WKH HQYLURQPHQW
%HFDXVH WKH 0DUVKDOO ,VODQGV ZHUH LVRODWHG OLJKWO SRSXODWHG DQG DOUHDG XQGHU
PLOLWDU FRQWURO 8 6 OHDGHUV YLHZHG WKHP DV DQ LGHDO SODFH IRU WKH 8 6 1DY WR
FRQGXFW WHVWV ZLWKRXW PXFK LQWHUQDWLRQDO VFUXWLQ %DUNHU VXSUD DW
7KH IROORZLQJ GHFDGHV ZLWQHVVHG VLJQLILFDQW 8 6 PLOLWDU EXLOG XS LQ WKH
0LFURQHVLDQ UHJLRQ ± LQFOXGLQJ WZHOYH HDUV RI GHYDVWDWLQJ QXFOHDU WHVWLQJ LQ WKH
0DUVKDOO ,VODQGV ± EXW YHU OLWWOH PRYHPHQW WRZDUGV VHOI JRYHUQDQFH RU HFRQRPLF
GHYHORSPHQW IRU WKH LQKDELWDQWV 'HVSLWH D PDQGDWH RI SURPRWLQJ ³LQGHSHQGHQFH ´
DQG ZLWK OLWWOH HIIRUW GHYRWHG WR GHYHORSLQJ WKH LQKDELWDQWV¶ VHOI JRYHUQDQFH WKH
PLOLWDU HQWUHQFKPHQW LQ WKH LVODQGV FRQWLQXHG DORQJVLGH WKH LVODQGV¶ JURZLQJ
GHSHQGHQFH RQ 8 6 IXQGLQJ 6HH 0DWWKHZ (LOHQEHUJ $PHULFDQ 3ROLF LQ
0LFURQHVLD - RI 3DF +LVW
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 19 of 40
(FRQRPLF GHSHQGHQF ZDV QRW DQ DFFLGHQWDO ESURGXFW RI JRRG IDLWK 8 6
DGPLQLVWUDWLYH GHFLVLRQV DV WUXVWHH 7KDW GHSHQGHQF IORZHG IURP 8 6 UHFRJQLWLRQ
WKDW ³>D@V ORQJ DV 0LFURQHVLD UHPDLQV HFRQRPLFDOO GHSHQGHQW RQ WKH 8QLWHG
6WDWHV WKH 8QLWHG 6WDWHV ODZV DQG SROLFLHV >ZRXOG@ EH LQIOXHQWLDO ´ (GLEHUWR
5RPiQ 7KHURQ 6LPPRQV 0HPEHUVKLS 'HQLHG 6XERUGLQDWLRQ DQG 6XEMXJDWLRQ
8QGHU 8QLWHG 6WDWHV ([SDQVLRQLVP 6DQ 'LHJR / 5HY FLWLQJ
-RKQ % 0HWHOVNL 0LFURQHVLD DQG )UHH $VVRFLDWLRQ &DQ )HGHUDOLVP 6DYH 7KHP"
&DO : ,QW¶O / - $ UHSRUW FRPPLVVLRQHG E WKH .HQQHG
$GPLQLVWUDWLRQ ³RXWOLQH>G@ D VWUDWHJ IRU IXUWKHULQJ $PHULFDQ LQWHUHVWV LQ
0LFURQHVLD LQ SDUW E LQWHQWLRQDOO IRVWHULQJ HFRQRPLF GHSHQGHQFH RQ WKH 8QLWHG
6WDWHV ´ ,G DW FLWLQJ 8 6 *RYHUQPHQW 6XUYH 0LVVLRQ WR WKH 7UXVW 7HUULWRU
RI WKH 3DFLILF ,VODQGV 5HSRUW WR WKH 3UHVLGHQW $ 6RORPRQ 2FW ³7KH
WKUXVW RI 7KH 6RORPRQ 5HSRUW >ZDV@ WKDW E LQFUHDVLQJ 8QLWHG 6WDWHV ILQDQFLDO DLG
ORDOW RI WKH 7UXVW 7HUULWRU ZLOO EH DVVXUHG YLD WKH UHVXOWDQW HFRQRPLF
GHSHQGHQF ´ ,G DW ,QGHHG WKH 5HSRUW ³FOHDUO ODLG RXW D VWUDWHJ> @ 7KH
8 6 ZRXOG SXPS ODUJH DPRXQWV RI PRQH LQWR 0LFURQHVLD EXLOG D FRPPXQLW
VHUYLFH LQIUDVWUXFWXUH HVWDEOLVK D KRVW RI GHYHORSPHQW SURJUDPV DQG D GHSHQGHQF
XSRQ FDVK KROG D SOHEHVFLWH DW WKH SRLQW DW ZKLFK WKH 0LFURQHVLDQV¶ KRSHV KDG
EHHQ UDLVHG DQG WKHQ SXOO EDFN VXSSRUW DV WKH YDULRXV GHYHORSPHQW SURJUDPV IDLOHG
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 20 of 40
WR VXFFHHG ´ &DWKHULQH /XW] 7KH &RPSDFW RI )UHH $VVRFLDWLRQ 0LFURQHVLDQ 1RQ
,QGHSHQGHQFH DQG 8 6 3ROLF %XOO RI &RQFHUQHG $VLDQ 6FK
7KHVH HYHQWV VSXUUHG 8 6 5HSUHVHQWDWLYH 3DWV 7 0LQN WR SXEOLVK D
VFDWKLQJ FULWLTXH RI WKH 8QLWHG 6WDWHV¶ ³FRORQLDO´ OLNH SUHVHQFH LQ 0LFURQHVLD LQ
0DQ RI WKH SUREOHPV LGHQWLILHG E 5HSUHVHQWDWLYH 0LQN UHPDLQ WRGD
IRUW HDUV ODWHU DQG WZHQW ILYH HDUV DIWHU WKH LVODQGV¶ ³LQGHSHQGHQFH ´ 6KH
GHWDLOHG RYHU WZR GHFDGHV RI ³QHJOHFW RI WUXVWHH REOLJDWLRQV´ DQG FKDVWLVHG WKH
8QLWHG 6WDWHV IRU IDLOLQJ WR PDNH JRRG RQ LWV 7UXVW SURPLVHV WR ³SURPRWH WKH
HFRQRPLF DGYDQFHPHQW DQG VHOI VXIILFLHQF RI WKH LQKDELWDQWV´ DQG ³SURWHFW WKH
LQKDELWDQWV DJDLQVW WKH ORVV RI WKHLU ODQGV DQG UHVRXUFHV ´ 0LQN VXSUD DW
,QVWHDG ³DIWHU ZLQQLQJ WKH ULJKW WR FRQWURO 0LFURQHVLD >WKH 8 6 @ SURFHHGHG WR
DOORZ WKH LVODQGV WR VWDJQDWH DQG GHFD WKURXJK LQGLIIHUHQFH DQG ODFN RI
DVVLVWDQFH ´ ,G DW 7KXV ³WKH SHRSOH DUH VWLOO ODUJHO LPSRYHULVKHG DQG
ODFNLQJ LQ DOO RI WKH EDVLF DPHQLWLHV ZKLFK ZH FRQVLGHU HVVHQWLDO ± DGHTXDWH
HGXFDWLRQ KRXVLQJ JRRG KHDOWK VWDQGDUGV PRGHUQ VDQLWDWLRQ IDFLOLWLHV ´ ,G 0LQN
DOVR GHVFULEHG VSHFLILF ZDV LQ ZKLFK WKH 8 6 H[HUWHG LWV ZLOO LQ FUHDWLQJ WKLV
VLWXDWLRQ 7KLV ³GHOLEHUDWH´ UROH LQFOXGHG WKH 8 6 PDQLSXODWLRQ RI WUDGH
UHJXODWLRQV PDNLQJ ³WKH LVODQGHUV GHSHQGHQW RQ WKH JRYHUQPHQW´ D 8 6
LPSRVHG WDULII WKDW ³IUXVWUDWHG DQ KRSHV RI FUHDWLQJ D VL]DEOH RIIVKRUH ILVKHU´
DQG OLPLWLQJ DQ SURPLVH RI D WRXULVP LQGXVWU EHFDXVH RI 8 6 PLOLWDU
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 21 of 40
UHVWULFWLRQV ,G DW )RUPHU 8 6 $PEDVVDGRU WR WKH 8QLWHG 1DWLRQV
'RQDOG 0F+HQU DOVR DFNQRZOHGJHG WKDW ³:H LQ D VHQVH DOPRVW PDGH WKHP >WKH
0LFURQHVLDQV@ D ZHOIDUH VWDWH :H FUHDWHG D GHSHQGHQF ´ &RQJ 5HF
( ( QG &RQJ GDLO HG 0DU VWDWHPHQW RI +RQ (QL ) +
)DOHPDYDHJD FLWLQJ 0F+HQU
(YHQ LQ WKH PRYH WRZDUGV VHOI GHWHUPLQDWLRQ LQ WKH V DQG V
0LQN¶V WKHPHV RI ³FODVVLF PLOLWDU FRORQLDOLVP´ DQG ³FRQWULYHG GHSHQGHQW
UHODWLRQVKLS´ UHVRQDWHG 'XULQJ LQLWLDO QHJRWLDWLRQV ZLWK WKH 8QLWHG 6WDWHV
³$PHULFDQ WKLQNLQJ GLVWLQFWO SODFHG PLOLWDU FRQVLGHUDWLRQV DERYH
KXPDQLWDULDQ FRQVLGHUDWLRQV GHVSLWH LQWHUQDWLRQDO WUXVWHHVKLS REOLJDWLRQV ´ 'RQDOG
) 0F+HQU 0LFURQHVLD 7UXVW %HWUDHG ± $OWUXLVP YV 6HOI ,QWHUHVW LQ $PHULFDQ
)RUHLJQ 3ROLF )RU 8 6 6HFUHWDU RI 'HIHQVH -DPHV 6FKOHVVLQJHU DQG
WKH 8 6 PLOLWDU ³WKH LPSHWXV IRU WKH QHJRWLDWLRQV ZDV QRW DQ HIIRUW E WKH
0LFURQHVLDQV WR H[HUFLVH WKHLU ULJKW WR VHOI GHWHUPLQDWLRQ EXW µLQWHUQDWLRQDO DQG
SROLWLFDO¶ FRQVLGHUDWLRQV ´ ,G DW ³$PHULFDQ RIILFLDOV UDWLRQDOL]HG WKDW WKH
VPDOO SRZHUOHVV DQG SRYHUW VWULFNHQ 0LFURQHVLDQ SRSXODWLRQ KDG WR VDFULILFH LWV
,Q D 8QLWHG 1DWLRQV 0LVVLRQ WR 0LFURQHVLD ZDV DOVR ³VKDUSO FULWLFDO RI
$PHULFDQ DGPLQLVWUDWLRQ LQ DOPRVW HYHU DUHD SRRU WUDQVSRUWDWLRQ IDLOXUH WR VHWWOH
ZDU GDPDJH FODLPV IDLOXUH WR DGHTXDWHO FRPSHQVDWH IRU ODQG WDNHQ IRU PLOLWDU
SXUSRVHV SRRU OLYLQJ FRQGLWLRQV> @ LQDGHTXDWH HFRQRPLF GHYHORSPHQW LQDGHTXDWH
HGXFDWLRQ SURJUDPV DQG DOPRVW QRQH[LVWHQW PHGLFDO FDUH ´ 0F+HQU VXSUD DW
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 22 of 40
ULJKW WR GHFLGH LWV RZQ IXWXUH WR WKH JUHDWHU JRRG DV SHUFHLYHG E WKH 8QLWHG
6WDWHV ´ ,G
% WKH PLG V WKH )60 50, DQG 3DODX HQWHUHG LQWR &RPSDFWV RI )UHH
$VVRFLDWLRQ ZLWK WKH 8QLWHG 6WDWHV &RPSDFW RI )UHH $VVRFLDWLRQ 8 6 0LFURQHVLD
0DUVKDOO ,VODQGV 3XE / 1R 6WDW &RPSDFW RI )UHH
$VVRFLDWLRQ 8 6 3DODX 3XE / 1R 6WDW $PRQJ RWKHU
WKLQJV WKH &RPSDFWV UHFRJQL]HG WKH GDPDJHV VXIIHUHG E WKH 0LFURQHVLDQ SHRSOH
LQFOXGLQJ KHDOWK FDUH QHHGV DQG FRPPLWWHG WKH 8 6 WR UHSDLULQJ WKDW GDPDJH ,W
JDYH FRPSOHWH PLOLWDU FRQWURO RYHU WKH UHJLRQ WR WKH 8 6 LQ H[FKDQJH IRU WKH
LVODQGV¶ SHRSOHV¶ QHDUO XQUHVWULFWHG WUDYHO WR WKH 8 6 VWDWHV DQG WHUULWRULHV WR
³HVWDEOLVK UHVLGHQFH ´ 3 / †† D D E
7KH &RPSDFWV¶ VWDWHG JRDOV ZHUH DQG FRQWLQXH WR EH WR ³ VHFXUH VHOI
JRYHUQPHQW IRU HDFK FRXQWU DVVXUH FHUWDLQ QDWLRQDO VHFXULW ULJKWV IRU WKH
)60 WKH 50, DQG WKH 8QLWHG 6WDWHV DQG DVVLVW WKH )60 DQG WKH 50, LQ WKHLU
HIIRUWV WR DGYDQFH HFRQRPLF VHOI VXIILFLHQF ´ 8 6 *RY¶W $FFRXQWDELOLW 2IILFH
7 16,$' 5&(' 8 6 )XQGV WR 7ZR 0LFURQHVLDQ 1DWLRQV +DG /LWWOH
,PSDFW RQ (FRQRPLF 'HYHORSPHQW DQG $FFRXQWDELOLW 2YHU )XQGV :DV /LPLWHG
7KHVH JRDOV HFKRHG WKH HDUOLHU 7UXVW DJUHHPHQW %XW OLWWOH FKDQJHG LQ 8 6
SUDFWLFHV LQ WKH UHJLRQ 7KH RUFKHVWUDWHG GHSHQGHQF RQ IHGHUDO PRQLHV FRQWLQXHG
WKURXJK WKH V ³EXW DW JUHDWO UHGXFHG IHGHUDO IXQGLQJ OHYHOV DV D UHVXOW RI WKH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 23 of 40
UH QHJRWLDWHG UHODWLRQVKLS ZLWK WKH 8 6 XQGHU WKH &RPSDFW RI )UHH $VVRFLDWLRQ> @´
$QQ 0 3REXWVN HW DO 0LFURQHVLDQ 0LJUDQW +HDOWK ,VVXHV LQ +DZDLL 3DUW $Q
$VVHVVPHQW RI +HDOWK /DQJXDJH DQG .H 6RFLDO 'HWHUPLQDQWV RI +HDOWK &DO -
RI +HDOWK 3URPRWLRQ $V D UHVXOW ³0LFURQHVLDQV KDYH PRYHG DZD
IURP WKHLU KRPH LVODQGV WR SODFHV OLNH WKH 8 6 7HUULWRU RI *XDP WKH &10, DQG
+DZDLL ´ ,G
7KH &RPSDFW ZLWK WKH )60 DQG 50, FRPPLWWHG WKH 8QLWHG 6WDWHV WR
FRPSHQVDWLRQ IRU GHFDGHV RI GDPDJH IURP QXFOHDU WHVWLQJ LQ WKH 0DUVKDOO ,VODQGV
7KH 8 6 H[SOLFLWO ³DFFHSW>HG@ WKH UHVSRQVLELOLW IRU FRPSHQVDWLRQ RZLQJ WR
FLWL]HQV RI WKH 0DUVKDOO ,VODQGV RU WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD RU 3DODX
IRU ORVV RU GDPDJH WR SURSHUW DQG SHUVRQ RI WKH FLWL]HQV RI WKH 0DUVKDOO ,VODQGV RU
WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD UHVXOWLQJ IURP WKH QXFOHDU WHVWLQJ SURJUDP
ZKLFK WKH *RYHUQPHQW RI WKH 8QLWHG 6WDWHV FRQGXFWHG LQ WKH 1RUWKHUQ 0DUVKDOO
,VODQGV> @´ 3 / † D 7KH 8QLWHG 6WDWHV DJUHHG WR WKLV FRPSHQVDWLRQ
³>L@Q UHFRJQLWLRQ RI WKH H[SUHVVHG GHVLUH RI WKH *RYHUQPHQW RI WKH 0DUVKDOO
,VODQGV WR FUHDWH DQG PDLQWDLQ LQ SHUSHWXLW D PHDQV WR DGGUHVV SDVW SUHVHQW DQG
IXWXUH FRQVHTXHQFHV RI WKH 1XFOHDU 7HVWLQJ 3URJUDP >DQG L@Q UHFRJQLWLRQ RI
FRQWULEXWLRQV DQG VDFULILFHV PDGH E WKH SHRSOH RI WKH 0DUVKDOO ,VODQGV LQ UHJDUG WR
WKH 1XFOHDU 7HVWLQJ 3URJUDP> @´ $JUHHPHQW %HWZHHQ WKH *RYHUQPHQW RI WKH
8QLWHG 6WDWHV DQG WKH *RYHUQPHQW RI WKH 0DUVKDOO ,VODQGV IRU WKH ,PSOHPHQWDWLRQ
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 24 of 40
RI 6HFWLRQ RI WKH &RPSDFW RI )UHH $VVRFLDWLRQ 3UHDPEOH ³6HFWLRQ
$JUHHPHQW´ 7KH 8 6 DOVR DJUHHG WR SURYLGH ³VSHFLDO PHGLFDO FDUH DQG ORJLVWLFDO
VXSSRUW´ IRU WKH SHRSOH RI 5RQJHODS DQG 8WULN ZKR ZHUH H[SRVHG WR UDGLDWLRQ IURP
WKH WKHUPRQXFOHDU ³%UDYR´ WHVW 8 6 & † K
$W QHDUO HYHU WXUQ WKH 8QLWHG 6WDWHV IDLOHG WR GLVFKDUJH WKHVH
UHVSRQVLELOLWLHV )RU WKLV UHDVRQ WKH 0DUVKDOOHVH ILOHG VHYHUDO ODZVXLWV DJDLQVW WKH
8 6 VHHNLQJ FRPSHQVDWLRQ IRU DPRQJ RWKHU WKLQJV SURSHUW ORVV DQG SHUVRQDO
LQMXULHV 7KH 8 6 IRUHVWDOOHG WKH FRXUW VXLWV LQ SDUW WKURXJK WKH FUHDWLRQ RI D
1XFOHDU &ODLPV 7ULEXQDO VHH 6HFWLRQ $JUHHPHQW $UW ,, † F $UW ,9 † D
ZKLFK VRPH 0DUVKDOOHVH XQVXFFHVVIXOO FKDOOHQJHG 6HH 3HRSOH RI (QHZHWDN Y
8QLWHG 6WDWHV ) G )HG &LU -XGD Y 8 6 &O &W
$IWHU SXUVXLQJ WKHLU FODLPV EHIRUH WKH 7ULEXQDO IRU QLQHWHHQ HDUV WKH
0DUVKDOOHVH UHFHLYHG 7ULEXQDO DZDUGV RI PRUH WKDQ ELOOLRQ LQ FRPSHQVDWRU
GDPDJHV %XW WKH 8 6 SDLG RQO PLOOLRQ ³ZKLFK UHSUHVHQWV OHVV WKDQ RI
RI LWV DZDUGV ´ :HLVJDOO WHVWLPRQ VXSUD DW :KHQ WKH 0DUVKDOOHVH UHWXUQHG
WR IHGHUDO FRXUW WR HQIRUFH WKH DZDUGV WKHLU FODLPV ZHUH GLVPLVVHG 3HRSOH RI
%LNLQL Y 8 6 )HG &O DII¶G ) G )HG &LU
0HPEHUV RI WKH QXFOHDU DIIHFWHG DWROOV DOVR ILOHG D ³FKDQJHG FLUFXPVWDQFHV´
SHWLWLRQ XQGHU 6HFWLRQ RI WKH &2)$ EXW WKH 8 6 RSSRVHG LW 6HH &RQJ
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 25 of 40
'HVSLWH XUJLQJ E WKH 0DUVKDOO ,VODQGV JRYHUQPHQW WKH 8QLWHG 6WDWHV
FRQWLQXHV WR UHVLVW IXUWKHU FRPSHQVDWLRQ FODLPV IRU WKH LQMXVWLFHV 6HH &RQJ
5HF 6 WK &RQJ GDLO HG -DQ VWDWHPHQW RI 6HQ -HII
%LQJDPDQ QRWLQJ WKH 8 6 ¶V ³RSSRVLWLRQ WR IXUWKHU ILQDQFLDO FRPSHQVDWLRQ
EHFDXVH WKH VHWWOHPHQW ZDV µIXOO DQG ILQDO¶´
$OWKRXJK WKH 8QLWHG 6WDWHV FODLPHG WKH QHFHVVLW RI QXFOHDU WHVWLQJ LQ WKH
0DUVKDOO ,VODQGV IRU ³WKH JRRG RI DOO PDQNLQG ´ WKH 0DUVKDOOHVH SHRSOH FRQWLQXH WR
VXIIHU DQG ³GLH RI UDGLRDFWLYLW UHODWHG FDQFHUV DW KRUULILF UDWHV ´ -XOLDQ $JXRQ
2WKHU $UPV 7KH 3RZHU RI D 'XDO 5LJKWV /HJDO 6WUDWHJ IRU WKH &KDPRUX 3HRSOH
RI *XDP 8VLQJ WKH 'HFODUDWLRQ RQ WKH 5LJKWV RI ,QGLJHQRXV 3HRSOHV LQ 8 6
&RXUWV 8 +DZ / 5HY $QG WKH 8QLWHG 6WDWHV VWLOO RSHUDWHV
WKH 8 6 $UP 5RQDOG 5HDJDQ %DOOLVWLF 0LVVLOH 'HIHQVH 7HVW 6LWH RQ .ZDMDOHLQ
$WROO $V WKH 8 6 *RYHUQPHQW $FFRXQWDELOLW 2IILFH *$2 UHFHQWO UHFRJQL]HG
WKH UHJLRQ FRQWLQXHV WR SOD D FUXFLDO UROH LQ VXSSRUWLQJ WKH 8QLWHG 6WDWHV¶ VWUDWHJLF
PLOLWDU LQWHUHVWV 6HH 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 .ZDMDOHLQ
$WROO ,V WKH .H 8 6 'HIHQVH ,QWHUHVW LQ 7ZR 0LFURQHVLDQ 1DWLRQV
5HF 6 WK &RQJ GDLO HG -DQ VWDWHPHQW RI 6HQ -HII
%LQJDPDQ
7KH 8 6 PLOLWDU UHFHQWO VLJQHG DQ DJUHHPHQW WR RSHUDWH WKH %DOOLVWLF 0LVVLOH
'HIHQVH 7HVW 6LWH RQ .ZDMDOHLQ $WROO XQWLO 8 6 0LVVLOH 7HVW 'HDO 2IIHUV
+RSH WR 0DUVKDOOV 6OXP $*(1&( )5$1&( 35(66( 0D
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 26 of 40
7KH 8 6 ¶V PLOLWDU GULYHQ DFWLRQV ± IRU WKH EHQHILW RI WKH 8 6 ± WKXV UHVXOWHG LQ
VHYHUH SDVW DQG FRQWLQXLQJ KDUPV WR WKH KHDOWK RI 0DUVKDOOHVH DQG DOO
0LFURQHVLDQV
% 7KURXJK WKH &2)$ WKH 8QLWHG 6WDWHV KDV 3DUWLDOO $WWHPSWHG WR
5HSDLU WKH 'DPDJH %XW ,W +DV )DLOHG WR 'LVFKDUJH 7KLV
5HVSRQVLELOLW DQG ,Q 6RPH :DV ,WV 3DUWLDO $PHOLRUDWLYH (IIRUWV
+DYH :RUVHQHG WKH 6LWXDWLRQ IRU 0LFURQHVLDQV LQ 7KHLU +RPHODQGV
&DXVLQJ 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI +HDOWK &DUH
7ZHQW ILYH HDUV DIWHU WKH &RPSDFW¶V LQLWLDWLRQ WKH 8QLWHG 6WDWHV VWLOO KDV
IDLOHG WR GLVFKDUJH LWV UHVSRQVLELOLW WR WKH 0LFURQHVLDQ SHRSOH ± WKLV LV JHQHUDOO
DFNQRZOHGJHG E WKH *$2 ± DQG WKH GLUH VLWXDWLRQ LQ WKH 0LFURQHVLDQV¶ KRPHODQGV
KDV FRPSHOOHG HYHU LQFUHDVLQJ PLJUDWLRQ WR +DZDLµL
,Q WKH *$2 UHSRUWHG WKDW DIWHU ILIWHHQ HDUV WKH &RPSDFW KDG IDLOHG WR
DFKLHYH LWV PDMRU JRDO RI DVVLVWLQJ WKH )60 DQG 50, WR EHFRPH HFRQRPLFDOO VHOI
VXIILFLHQW 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 7 $Q $VVHVVPHQW RI
WKH $PHQGHG &RPSDFWV DQG 5HODWHG $JUHHPHQWV $QRWKHU *$2 UHSRUW
VLQJOHG RXW KHDOWK FDUH LQ WKH )60 DQG 50, DV ³LQDGHTXDWH WR PHHW WKH QHHGV RI
WKH SRSXODWLRQ SURYLGLQJ LQFHQWLYH WR WUDYHO RU PRYH WR WKH 8QLWHG 6WDWHV LQ RUGHU
WR UHFHLYH DSSURSULDWH KHDOWK FDUH ´ 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2
0LJUDWLRQ )URP 0LFURQHVLDQ 1DWLRQV +DV +DG 6LJQLILFDQW ,PSDFW RQ *XDP
+DZDLL DQG WKH &RPPRQZHDOWK RI WKH 1RUWKHUQ 0DULDQD ,VODQGV
KWWS ZZZ WKHIUHHOLEUDU FRP 86 PLVVLOH WHVW GHDO R IIHUV KRSH WR 0DUVKDOOV
VOXP D
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 27 of 40
%XUHDXFUDWLF ILJKWLQJ DPRQJ WKH 'HSDUWPHQWV RI 6WDWH ,QWHULRU DQG 'HIHQVH
FRQWULEXWHG WR WKHVH IDLOXUHV 6HH *$2 5HSRUW 5&(' VXSUD DW
7KH IXWXUH RXWORRN LV JULP 8QLWHG 6WDWHV HFRQRPLF VXSSRUW XQGHU WKH
&RPSDFW LV GHVLJQHG WR GHFOLQH E WZR WKLUGV EHWZHHQ DQG WKURXJK WKH
HQG RI WKH DPHQGHG &RPSDFW SHULRG $ *$2 UHSRUW ZDUQHG WKDW WKH GHVLJQ
RI WKH &RPSDFW WUXVW IXQG WKDW ZLOO UHSODFH GLUHFW 8 6 HFRQRPLF DVVLVWDQFH DW WKH
HQG RI WKH &RPSDFW SHULRG PD QRW EH VXVWDLQDEOH RU VXSSRUW WKH H[LVWLQJ
LQIUDVWUXFWXUH 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 'HYHORSPHQW
3URVSHFWV 5HPDLQ /LPLWHG IRU 0LFURQHVLD DQG 0DUVKDOO ,VODQGV
/DUJHO EHFDXVH RI WKH LQVXIILFLHQW KHDOWK FDUH VVWHPV LQDGHTXDWH
HPSORPHQW DQG HGXFDWLRQDO RSSRUWXQLWLHV D OLPLWHG HFRQRPLF EDVH DQG
GLVSODFHPHQW EHFDXVH RI 8 6 QXFOHDU WHVWLQJ &2)$ FLWL]HQV KDYH PLJUDWHG WR
RWKHU SODFHV LQFOXGLQJ +DZDLµL IRU QHHGHG PHGLFDO FDUH DQG RWKHU VHUYLFHV WKDW GR
QRW H[LVW LQ WKHLU KRPHODQGV $SSUR[LPDWHO WR &2)$ PLJUDQWV
QRZ OLYH LQ +DZDLµL 6KHOGRQ 5LNORQ 0 ' HW DO 7KH ³&RPSDFW ,PSDFW´ LQ
+DZDLµL )RFXV RQ +HDOWK &DUH +DZDLµL 0HG - -XQH ,Q D VXUYH
RI 0LFURQHVLDQV LQ +DZDL‫ދ‬L WKH PRVW IUHTXHQWO FLWHG UHDVRQ IRU PLJUDWLQJ WR
+DZDL‫ދ‬L ZDV KHDOWK FDUH 3REXWVN HW DO VXSUD DW ,QGHHG &2)$
PLJUDQWV WR +DZDLµL UHIOHFW WKH SRRU KHDOWK FRQGLWLRQV RI WKHLU KRPH FRXQWULHV
$ORQJVLGH LQIHFWLRXV GLVHDVHV OLNH WXEHUFXORVLV DQG +DQVHQ¶V GLVHDVH &2)$
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 28 of 40
PLJUDQWV DOVR DSSHDU WR KDYH KLJK UDWHV RI GLDEHWHV FDQFHUV LQFOXGLQJ UDGLDWLRQ
LQGXFHG FDQFHUV REHVLW DQG FDUGLRYDVFXODU GLVHDVH ,G DW <HW XQGHU WKH
3HUVRQDO 5HVSRQVLELOLW DQG :RUN 2SSRUWXQLW 5HFRQFLOLDWLRQ $FW RI DOO
&2)$ PLJUDQWV EHFDPH LQHOLJLEOH IRU 0HGLFDLG DQG RWKHU IHGHUDO ZHOIDUH
SURJUDPV ZKHQ WKH ZHUH UH FDWHJRUL]HG DV ³QRQ TXDOLILHG DOLHQV ´ 8 6 & †
E LG † $QG XQOLNH RWKHU OHJDO LPPLJUDQWV WKH DUH SURKLELWHG IURP
EHFRPLQJ HOLJLEOH IRU EHQHILWV HYHQ DIWHU WKH ILYH HDU ZDLW SHULRG DSSOLFDEOH WR
OHJDO SHUPDQHQW UHVLGHQWV
,,, $V D &RQVWLWXHQW 0HPEHU RI WKH 8QLWHG 6WDWHV DQG $V 5HFLSLHQW RI
6XEVWDQWLDO )HGHUDO 'ROODUV WR &RYHU WKH ,PSDFWV RI &2)$ 5HVLGHQWV
,QFOXGLQJ +HDOWK 1HHGV WKH 6WDWH RI +DZDL‫ދ‬L %HDUV -RLQW
5HVSRQVLELOLW IRU 0LFURQHVLDQV LQ +DZDL‫ދ‬L IRU 'HVSHUDWHO 1HHGHG
2IWHQ /LIH 2U 'HDWK 0HGLFDO &DUH
7KH 6WDWH EHDUV DQ LPSRUWDQW GHJUHH RI MRLQW UHVSRQVLELOLW WR &2)$
UHVLGHQWV LQ +DZDL‫ދ‬L IRU GHVSHUDWHO QHHGHG RIWHQ OLIH RU GHDWK PHGLFDO FDUH )LUVW
WKH 6WDWH DVVXPHV SDUW RI WKH IHGHUDO JRYHUQPHQW¶V REOLJDWLRQ WKURXJK LWV
DFFHSWDQFH RI SDUWLDO UHLPEXUVHPHQW IRU &2)$ UHVLGHQWV¶ KHDOWK FDUH +DZDLµL
UHFHLYHG IHGHUDO GROODUV VLQFH DV UHLPEXUVHPHQW IRU FRVWV RI WKH
LPSDFWV RI SHRSOH IURP &RPSDFW FRXQWULHV LQFOXGLQJ KHDOWK QHHGV 6HH 3OV ¶
0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM 7KH &RPSDFWV SURYLGH IRU D SHUPDQHQW
DSSURSULDWLRQ RI SHU HDU WKDW LV DSSRUWLRQHG DPRQJ +DZDLµL *XDP
&10, DQG $PHULFDQ 6DPRD WR ³DLG LQ GHIUDLQJ FRVWV LQFXUUHG DV D UHVXOW RI
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 29 of 40
LQFUHDVHG GHPDQGV SODFHG RQ KHDOWK HGXFDWLRQDO VRFLDO RU SXEOLF VDIHW VHUYLFHV
RU LQIUDVWUXFWXUH UHODWHG WR VXFK VHUYLFHV GXH WR WKH UHVLGHQFH RI TXDOLILHG
QRQLPPLJUDQWV IURP WKH 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV WKH )HGHUDWHG 6WDWHV RI
0LFURQHVLD RU WKH 5HSXEOLF RI 3DODX ´ &RPSDFW RI )UHH $VVRFLDWLRQ ZLWK
0LFURQHVLD DQG WKH 0DUVKDOO ,VODQGV 3XE / 1R † H 6WDW
FRGLILHG DV DPHQGHG 8 6 & † 7KH 6WDWH WKXV FROOHFWV
D HDU IURP WKH IHGHUDO JRYHUQPHQW WR FRYHU LPSDFWV LQFOXGLQJ
KHDOWK VHH 3OV ¶ 0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM DQG +DZDLµL PD VHHN
DGGLWLRQDO IXQGV IRU UHLPEXUVHPHQW DQG VHUYLFHV SURYLGHG WR &2)$ UHVLGHQWV 3 /
† H 6WDW $OWKRXJK WKRVH IXQGV GR QRW FRPSOHWHO
FRYHU LPSDFW FRVWV &2)$ UHVLGHQWV GHVHUYH HTXDO KHDOWK FDUH WUHDWPHQW EHFDXVH
PDQ 0LFURQHVLDQV DOVR SD +DZDLµL 6WDWH WD[HV DQG SURGXFWLYHO FRQWULEXWH WR WKH
6WDWH¶V HFRQRP
6HFRQG WKH 6WDWH WKURXJK LWV OHJLVODWLYHO FUHDWHG $WWRUQH *HQHUDO 7DVN
)RUFH DFNQRZOHGJHV WKDW UDWKHU WKDQ GUDPDWLFDOO FXWWLQJ &2)$ UHVLGHQWV¶ KHDOWK
FDUH LW VKRXOG LQFUHDVH HIIRUWV WR KHOS &2)$ PLJUDQWV WR DFFHVV DQG UHFHLYH EHWWHU
KHDOWK VHUYLFHV LQ +DZDL‫ދ‬L 6HH 6WDWH RI +DZDL‫ދ‬L 'HSDUWPHQW RI WKH $WWRUQH
*HQHUDO )LQDO 5HSRUW RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ 7DVN )RUFH
,QVWHDG LQ UHVSRQVH WR EXGJHWDU OLPLWDWLRQV WKH 6WDWH GLVHQUROOHG QRQ
SUHJQDQW &2)$ UHVLGHQWV ZKR ZHUH HDUV RU ROGHU IURP WKHLU 6WDWH KHDOWK
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 30 of 40
EHQHILWV SURJUDPV DQG SXW WKHP LQWR %++ D OLPLWHG DQG GUDVWLFDOO LQIHULRU SODQ
%++ SURYLGHV PLQLPDO KHDOWK FDUH FRYHUDJH ³VXFK DV OLPLWHG LQSDWLHQW DQG
RXWSDWLHQW SKVLFLDQ YLVLWV DQG IRXU SUHVFULSWLRQ GUXJV SHU PRQWK ´ 3OV ¶ 0HP LQ
6XSS RI 0RW IRU 3UHOLP ,QM $V D UHVXOW ³>S@DWLHQWV ZLWK FKURQLF RU VHULRXV
LOOQHVVHV ZLWK GLVDELOLWLHV DQG WKRVH UHTXLULQJ QXPHURXV SUHVFULSWLRQ PHGLFDWLRQV
DUH GHSULYHG RI FULWLFDO SRWHQWLDOO OLIH VXVWDLQLQJ FDUH ´ ,G
7KH OLPLWHG %++ SURJUDP KDV QR VSHFLDO SURYLVLRQV IRU FDQFHU WUHDWPHQWV
DQG WKRVH WUHDWPHQWV DUH QRW FRYHUHG DV DQ HPHUJHQF VHUYLFH ,G DW
0RUHRYHU ³>G@LDOVLV SDWLHQWV WSLFDOO WDNH DSSUR[LPDWHO WR SUHVFULSWLRQ
PHGLFDWLRQV SHU PRQWK ´ IDU PRUH WKDQ %++¶V IRXU SUHVFULSWLRQ SHU PRQWK OLPLW
'HFODUDWLRQ RI 'U :LOIUHG $OLN ³'U $OLN 'HFO ´ ˆ ,Q DGGLWLRQ PRVW &2)$
UHVLGHQWV LQ QHHG RI WUDQVSODQWV ZLOO EH XQDEOH WR DFFHVV WKH 6WDWH RI +DZDLL 2UJDQ
DQG 7LVVXH 7UDQVSODQW SURJUDP 3OV ¶ 0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM
%HFDXVH %++ FDSV VWDWHZLGH HQUROOPHQW DW SHRSOH PDQ ZKR QHHG HYHQ LWV
PLQLPDO FRYHUDJH ZLOO EH OHIW ZLWKRXW DQ KHDOWK FDUH SODQ ,G DW
$V D UHVXOW PDQ &2)$ UHVLGHQWV ZLWK VHULRXV LOOQHVVHV ZLOO EH XQDEOH WR
UHFHLYH SUHYHQWDWLYH FDUH OLIH VDYLQJ WUHDWPHQW DQG DQ DGHTXDWH VXSSO RI
SUHVFULSWLRQ PHGLFDWLRQV DQG PDQ RWKHUV ZLOO QRW KDYH DQ KHDOWK FDUH DSDUW IURP
HPHUJHQF URRP VHUYLFHV +HDOWK FDUH SUDFWLWLRQHUV UHFRJQL]H WKH VWDUN RXWFRPH
³3DWLHQWV QHHGLQJ FDUH IRU FRQGLWLRQV VXFK DV UHQDO IDLOXUH DQG FDQFHU ZLOO VXIIHU
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 31 of 40
EHFDXVH FKHPRWKHUDS DQG KHPRGLDOVLV DUH OLIH VXVWDLQLQJ WUHDWPHQWV IRU PDQ
SDWLHQWV 7DNLQJ DZD WKHVH FUXFLDO WUHDWPHQWV ZLOO UHVXOW LQ GHDWK ´ $DURQ
6DXQGHUV HW DO +HDOWK DV D +XPDQ 5LJKW :KR LV (OLJLEOH" +DZDLµL 0HG -
-XQH 'LVDEOHG SHRSOH ³HQUROOHG LQ %++ RU ZLWKRXW D KHDOWK SODQ ZLOO EH
IRUFHG LQWR D VWDWH RI GHWHULRUDWLQJ KHDOWK ZKLFK ZLOO OHDG WR H[DFHUEDWLRQ RI
WKHLU FKURQLF DGYDQFHG LOOQHVVHV SURJUHVVLQJ WR WHUPLQDO VWDJHV 7KH RQO
DOWHUQDWLYHV ZRXOG EH WR EHFRPH EHGULGGHQ DQG QHJOHFWHG RU WR VHHN KRVSLWDO
PHGLFDO FDUH ´ 'HFODUDWLRQ RI 'U 5LWDEHOOH )HUQDQGHV ³'U )HUQDQGHV 'HFO ´ ˆ
6HH DOVR 'U $OLN 'HFO ˆ ³8QGHU %++ WKHUH LV D YHU KLJK ULVN WKDW
SDWLHQWV ZKR DUH XQDEOH WR UHFHLYH WKH FDUH WKH QHHG ZLOO HQG XS EHLQJ
KRVSLWDOL]HG RU ZLOO RWKHUZLVH H[SHULHQFH VHYHUH KHDOWK SUREOHPV RU HYHQ GHDWK ´
)RU WKLV UHDVRQ WZR UHFHQW +DZDLµL VWDWHZLGH UHSRUWV FRQFOXGH WKDW WKH 6WDWH
VKRXOG ³LQFUHDVH HIIRUWV WR KHOS WKH &2)$ PLJUDQW>V@ DFFHVV DQG UHFHLYH EHWWHU
KHDOWK VHUYLFHV LQ +DZDLµL ´ 5LNORQ 0 ' HW DO VXSUD DW FLWLQJ +DZDLµL
8QLQVXUHG 3URMHFW +DZDLµL ,QVWLWXWH IRU 3XEOLF $IIDLUV ,PSDFWV RI WKH &RPSDFWV RI
)UHH $VVRFLDWLRQ RQ +DZDLµL¶V +HDOWK &DUH 6VWHP 6WDWH RI +DZDL‫ދ‬L
'HSDUWPHQW RI WKH $WWRUQH *HQHUDO )LQDO 5HSRUW RI WKH &RPSDFWV RI )UHH
$VVRFLDWLRQ 7DVN )RUFH 7KH $WWRUQH *HQHUDO¶V 7DVN )RUFH 5HSRUW
ZKLFK ZDV SUHSDUHG SXUVXDQW WR D +DZDLµL 6HQDWH UHVROXWLRQ IXUWKHU UHFRPPHQGV
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 32 of 40
WKDW WKH 6WDWH VKRXOG SURDFWLYHO ³LQFUHDVH DOO KXPDQ VHUYLFHV WR WKH SHRSOH RI WKH
&2)$ QDWLRQV LQ D PRUH RUJDQL]HG SUHYHQWLRQ EDVHG DQG VWUDWHJLF ZD ´ ,G DW
,9 ,Q /LJKW RI WKH 6WDWH¶V %URDGHU &RPPLWPHQW WR 5HSDLULQJ 8QMXVW
'DPDJH WR &RPPXQLW 0HPEHUV IRU WKH %HQHILW RI $OO WKH 6WDWH %HDUV
D 0RUDO $V :HOO $V /HJDO 5HVSRQVLELOLW WR &RQWLQXH D 0HDQLQJIXO
/HYHO RI 0HGLFDO &DUH &RYHUDJH IRU 0LFURQHVLDQV
$ 3URYLGLQJ )LQDQFLDO 6XSSRUW IRU &2)$ 5HVLGHQWV¶ 0HGLFDO &DUH LV D
0RUDO 2EOLJDWLRQ WKDW )XUWKHUV +DZDLµL¶V &RPPLWPHQW WR -XVWLFH IRU
&RPPXQLW 0HPEHUV
3URYLGLQJ ILQDQFLDO VXSSRUW IRU &2)$ UHVLGHQWV¶ PHGLFDO FDUH LV D MXVWLFH
LVVXH ± UHSDLULQJ WKH GDPDJH RI ORQJ VWDQGLQJ LQMXVWLFH WR &2)$ UHVLGHQWV IRU
ZKLFK WKH 8QLWHG 6WDWHV KDV GLUHFW UHVSRQVLELOLW DQG IRU ZKLFK +DZDLµL LV SDUWO
UHLPEXUVHG ,QGHHG +DZDLµL KDV RIWHQ DFWHG ZLWK MXVWLFH DQG FRPSDVVLRQ WRZDUG
WKRVH LQ QHHG 7KH 6WDWH¶V FRPPLWPHQW HPHUJHV RXW RI +DZDLµL VWDWXWRU ODQJXDJH
WKDW LQVWUXFWV ODZPDNHUV WR FRQWHPSODWH ³$ORKD WKH HVVHQFH RI UHODWLRQVKLSV LQ
ZKLFK HDFK SHUVRQ LV LPSRUWDQW WR HYHU RWKHU SHUVRQ IRU FROOHFWLYH H[LVWHQFH´ ± WR
UHSDLU WKH KDUPV WR FRPPXQLW PHPEHUV IRU WKH EHQHILW RI DOO 6HH +DZ 5HY 6WDW
† D E ,W LV DOVR LQ WKH SXEOLF LQWHUHVW WDNLQJ FDUH RI &2)$ UHVLGHQWV¶
,Q WKH OHJLVODWXUH GLG QRW SDVV D ELOO UHTXLULQJ +DZDLµL¶V 'HSDUWPHQW RI
+XPDQ 6HUYLFHV ³WR SURYLGH PHGLFDO DVVLVWDQFH IRU GLDOVLV FKHPRWKHUDS DQG
RWKHU FDQFHU WUHDWPHQWV LQSDWLHQW DQG RXWSDWLHQW SKVLFLDQ YLVLWV DQG GUXJ
SUHVFULSWLRQV ´ IRU &2)$ PLJUDQWV &KDG %ODLU +DZDLL &RQJUHVVLRQDO 5HSV WR
)HGV +HOS 8V &XUE 0LFURQHVLDQV +RQ &LYLO %HDW 0D
KWWS ZZZ FLYLOEHDW FRP DUWLFOHV KDZDLL FRQJUHVVLRQDO UHSV WR
IHGV KHOS XV FXUE PLFURQHVLDQV
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 33 of 40
KHDOWK FDUH QHHGV UHGXFHV WKH FRVW RI WUXO H[SHQVLYH XQLQVXUHG PHGLFDO FDUH IRU
0LFURQHVLDQV LQ +DZDLµL ZKR KDYH D ULJKW WR WUDYHO KHUH XQGHU WKH &RPSDFW
8QWLO UHFHQWO &2)$ PLJUDQWV ³KDYH EHHQ WUHDWHG DV SDUW RI KXPDQLW LQ
+DZDLµL ´ 6DXQGHUV HW DO VXSUD DW ,QGHHG WKH 6WDWH H[SUHVVO FRPPLWWHG LWVHOI
WR HPEUDFH WKH YDOXH WKDW RXU ³FROOHFWLYH H[LVWHQFH´ DV DQ LVODQG FRPPXQLW
GHSHQGV XSRQ RXU IDLU WUHDWPHQW RI ³HDFK SHUVRQ´ DPRQJ XV 1RZ WKDW WKH 6WDWH LV
IDFLQJ GLIILFXOW ILQDQFLDO VWUHVV ³0LFURQHVLDQV DUH EHLQJ WROG WKDW WKH DUH QR
ORQJHU SDUW RI WKH IDPLO WKDW WKH FDQ WDNH WKHLU EURNHQ ERGLHV DQG JR KRPH WR
GLH ´ ,G ,I PDQ RU PRVW &2)$ UHVLGHQWV DUH GHSULYHG RI KHDOWK FDUH WKH ZLOO
VXIIHU LQ D ZD WKDW QR RWKHU JURXS LQ +DZDLµL VXIIHUV 7KLV LV QRW RQO XQHTXDO
WUHDWPHQW LW LV LQKXPDQH
1R RQH LV DFFXVLQJ WKH 6WDWH RI LQWHQGLQJ WKDW LQKXPDQH UHVXOW $W WKH VDPH
WLPH WKH 6WDWH KDV QRW SURSRVHG DQ NLQG RI RWKHU SODQ WR DGHTXDWHO DVVLVW &2)$
UHVLGHQWV PRVW LQ QHHG 2I FRXUVH EXGJHWDU OLPLWDWLRQV DUH UHDO DQG WKH IHGHUDO
JRYHUQPHQW KDV WKH XOWLPDWH GXW WR IXOILOO LWV SURPLVHV WR WKH 0LFURQHVLDQ SHRSOHV
%XW HYHQ FRQVLGHULQJ WKH 6WDWH¶V ILVFDO OLPLWDWLRQ WKH 6WDWH DV D PDWWHU RI
PRUDO DV ZHOO DV OHJDO REOLJDWLRQ QHHGV WR VWRS H[FOXGLQJ &2)$ UHVLGHQWV ± DQG
RQO &2)$ UHVLGHQWV DPRQJ XV ± IURP DFFHVV WR PHGLFDO FDUH IRU VHULRXV LOOQHVVHV
,W QHHGV WR SURYLGH D IDLU DQG DGHTXDWH OHYHO RI PHGLFDO FDUH IRU 0LFURQHVLDQV ZKR
DUH OHJDOO SUHVHQW DV PHPEHUV DQG WD[SDHUV RI WKH +DZDL‫ދ‬L FRPPXQLW LQ SDUW DV
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 34 of 40
D UHVXOW RI WKH SHUVLVWLQJ HIIHFWV RI SDVW LQMXVWLFHV 7KLV UHIOHFWV +DZDLµL¶V
FRPPLWPHQW WKDW LWV SHRSOHV¶ ³FROOHFWLYH H[LVWHQFH´ GHSHQGV LQ SDUW RQ JHQXLQH
HIIRUWV WR UHSDLU WKH SHUVLVWLQJ GDPDJH RI ORQJVWDQGLQJ LQMXVWLFH VXIIHUHG E WKRVH
PRVW LQ QHHG $QG LW UHIOHFWV WKH ³XEXQWX´ QRWLRQ WKDW QR RQH FDQ EH KHDOWK ZKHQ
PHPEHUV RI WKH FRPPXQLW DUH VHULRXVO VLFN DQG VXIIHULQJ 6HH <DPDPRWR VXSUD
DW
% 'LVFKDUJLQJ WKH 6WDWH¶V 5HVSRQVLELOLW :LOO 3URSHUO %DODQFH WKH
(TXLWLHV LQ )DYRU RI WKH 0LFURQHVLDQ 3HRSOH DQG :LOO )XUWKHU WKH
3XEOLF ,QWHUHVW
(FRQRPLF FRQVLGHUDWLRQV SRLQW WKH VDPH ZD ³(IIRUWV WR VDYH PRQH E
UHGXFLQJ KHDOWK FRYHUDJH WR 0LFURQHVLDQV ZLOO OLNHO UHVXOW LQ LQFUHDVLQJ XWLOL]DWLRQ
RI WKH HPHUJHQF GHSDUWPHQW IRU ODWH VWDJH GLVHDVH ZKLFK WHQGV WR EH D YHU FRVWO
DQG QRQ FRVW HIIHFWLYH VWUDWHJ WR SURYLGH FDUH /HDYLQJ YXOQHUDEOH SRSXODWLRQV
ZLWKRXW DFFHVV WR DGHTXDWH KHDOWKFDUH LQFUHDVHV WKH EXUGHQ DQG FRVW WR HYHURQH ´
5LNORQ 0 ' HW DO VXSUD DW 7KLV LV HFKRHG E SKVLFLDQ 1HDO $ 3DODIR[ ZKR
WUHDWV &2)$ UHVLGHQWV LQ +DZDLµL DQG ZKR VHUYHG RQ WZR +DZDLµL VWDWHZLGH
FRPPLWWHHV WKDW VWXGLHG KHDOWK FDUH FKDOOHQJHV IRU &2)$ UHVLGHQWV XQLQVXUHG
SDWLHQWV ³ZLOO EH IRUFHG WR JR WR WKH KRVSLWDO HPHUJHQF URRP ´ ZKLFK ³ZLOO OHDG WR
PXFK KLJKHU FRVWV IRU WKH 6WDWH RI +DZDLµL ´ 'HFODUDWLRQ RI 'U 1HDO $ 3DODIR[
³'U 3DODIR[ 'HFO ´ ˆˆ ,Q DGGLWLRQ ³7KH 6WDWH>¶@V SURMHFWLRQ RI ILQDQFLDO
VDYLQJV LQ 6WDWHZLGH KHDOWKFDUH H[SHQGLWXUHV E LQVWLWXWLQJ %++ KDV QRW EHHQ
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 35 of 40
VXSSRUWHG E DQ 6WDWH KHDOWKFDUH HFRQRPLF DQDOVLV ´ ,G ˆ 6HH DOVR 'U $OLN
'HFO ˆ ³0DQ &2)$ 5HVLGHQWV ZLOO EH IRUFHG WR JR WR KRVSLWDO HPHUJHQF
URRPV >(@PHUJHQF URRP YLVLWV DUH H[SHQVLYH DQG GR QRW VROYH RU UHSODFH
JRRG SULPDU DQG SUHYHQWDWLYH PHGLFLQH RU SURYLGH UHJXODU RU ORQJ WHUP FDUH
7KXV %++ ZLOO RQO VHUYH WR LQFUHDVH WKH FRVWV RI WUHDWLQJ &2)$ 5HVLGHQWV QRW
GHFUHDVH LW ´ 6DXQGHUV HW DO VXSUD DW ³WKH FRVW RI RQH >KRVSLWDO@ DGPLVVLRQ IRU
DFXWH UHQDO IDLOXUH FDQ HDVLO H[FHHG WKH FRVW RI PDQ UHJXODU GLDOVLV VHVVLRQV´
:KLOH FRYHULQJ DGHTXDWH OHYHOV RI KHDOWK FDUH IRU PLJUDQWV ZKR DUH OHJDOO
DQG ULJKWIXOO LQ WKH 6WDWH ZLOO OLNHO PHDQ VRPH LQLWLDO ILQDQFLDO VWUHVV GXULQJ
GLIILFXOW HFRQRPLF WLPHV LI KHDOWK FRYHUDJH LV QRW UHVWRUHG WR D PHDQLQJIXO OHYHO
WKH HYHQWXDO ILVFDO DQG PRUDO FRVWV LQ WHUPV RI DW OHDVW SDUWLDOO SUHYHQWDEOH KXPDQ
VXIIHULQJ DQG DGGLWLRQDO ZLGHVSUHDG ODWH VWDJH HPHUJHQF KHDOWK FDUH PD ZHOO EH
H[RUELWDQW $V 'U 3DODIR[ DYHUUHG DOORZLQJ &2)$ UHVLGHQWV WR H[SHULHQFH VHYHUH
KHDOWK SUREOHPV RU HYHQ GHDWK ³ZKLFK %++ LV OLNHO WR GR LV XQHWKLFDO LQKXPDQH
DQG XQQHFHVVDU HVSHFLDOO KHUH LQ WKH 8QLWHG 6WDWHV ZKHUH ZH DUH FDSDEOH RI
WUHDWLQJ DQG SUHYHQWLQJ VXFK FRQGLWLRQV HIIHFWLYHO ´ 'U 3DODIR[ 'HFO ˆ
)RU DOO RI WKHVH UHDVRQV WKH EDODQFH RI HTXLWLHV WLSV VKDUSO LQ WKH
0LFURQHVLDQ $SSHOOHHV¶ IDYRU 6HH ,QGHS /LYLQJ &WU RI 6 &DOLIRUQLD ,QF Y
0D[ZHOO -ROO ) G WK &LU UHFRJQL]LQJ WKDW KHDOWK DQG
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 36 of 40
VRFLDO ZHOIDUH FRQFHUQV DV ZHOO DV ILVFDO RQHV DUH SDUW RI WKH EDODQFH RI HTXLWLHV
FDOFXOXV
7KH SXEOLF LQWHUHVW DOVR ZHLJKV KHDYLO LQ IDYRU RI D SUHOLPLQDU LQMXQFWLRQ
EHFDXVH WDNLQJ FDUH RI &2)$ UHVLGHQWV¶ KHDOWK FDUH QHHGV UHGXFHV WKH FRVW RI WUXO
H[SHQVLYH XQLQVXUHG PHGLFDO FDUH IRU &2)$ UHVLGHQWV LQ +DZDLµL 0RUHRYHU IRU
PLJUDQWV IURP UHFHQWO ³LQGHSHQGHQW´ QDWLRQV ZLWK KLJKO GHSHQGHQW SROLWLFDO
³DVVRFLDWLRQV´ ZLWK WKH 8 6 PRUH LV DW VWDNH WKDQ WKH FRPPRQO UHFRJQL]HG
LPPLJUDQW VWUXJJOHV LQ WKH 8QLWHG 6WDWHV 7KH +DZDLµL KHDOWKFDUH VKRZGRZQ KDV
UH LJQLWHG ORQJ VLPPHULQJ LVVXHV UHODWHG WR WKH FRPSOH[ UHODWLRQVKLS EHWZHHQ WKH
8 6 DQG WKH 0LFURQHVLDQ QDWLRQV WKDW FRPSULVH WKH &RPSDFW RI )UHH $VVRFLDWLRQ
QDWLRQV $V D PRUDO PDWWHU WKH 6WDWH¶V LQWHUHVW LQ RXU ³FROOHFWLYH H[LVWHQFH´ OLHV LQ
VHUYLQJ MXVWLFH E FRQWLQXLQJ WR KHOS KHDO WKH SHUVLVWLQJ DQG LQGHHG LQWHQVLILQJ
ZRXQGV RI WKH VXEMHFWV RI ORQJ VWDQGLQJ LQMXVWLFH $V D JURXS RI SKVLFLDQV
SRLJQDQWO REVHUYHV ³:H DUH ERXQG WRJHWKHU E D FRPPRQ DQG VRPHWLPHV
XQIRUWXQDWH ZHE RI WKHUPRQXFOHDU ZHDSRQV WHVWLQJ WUHDWLHV DQG SURPLVHV RI
HFRQRPLF GHYHORSPHQW WKDW KDYH QRW FRPH WR IUXLWLRQ $ JUHDW VWDWH DQG QDWLRQ
LV RQH WKDW KDV WKH DELOLW DQG NQRZ KRZ WR SURWHFW DQG DVVLVW WKH YXOQHUDEOH DQG
WKRVH LQ JUHDWHVW QHHG ´ 5LNORQ 0 ' HW DO VXSUD DW
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 37 of 40
&21&/86,21
$PLFL UHVSHFWIXOO UHTXHVW WKDW WKH &RXUW DIILUP WKH GLVWULFW FRXUW¶V RUGHU
JUDQWLQJ SODLQWLIIV¶ PRWLRQ IRU SUHOLPLQDU LQMXQFWLRQ
'$7(' $XJXVW % V 6XVDQ . 6HUUDQR
6XVDQ . 6HUUDQR
(ULF . <DPDPRWR
'LQD 6KHN
$WWRUQHV IRU $PLFL &XULDH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 38 of 40
&(57,),&$7( 2) &203/,$1&( :,7+ 58/( D %
, 6XVDQ 6HUUDQR FRXQVHO IRU $PLFL &XULDH WKH -DSDQHVH $PHULFDQ &LWL]HQV
/HDJXH +RQROXOX &KDSWHU WKH 1DWLRQDO $VVRFLDWLRQ IRU WKH $GYDQFHPHQW RI
&RORUHG 3HRSOH +RQROXOX %UDQFK DQG .RNXD .DOLKL 9DOOH &RPSUHKHQVLYH )DPLO
6HUYLFHV FHUWLI WKDW WKH EULHI WR ZKLFK WKLV FHUWLILFDWH LV DWWDFKHG LV VHW LQ SRLQW
7LPHV 1HZ 5RPDQ D SURSRUWLRQDWHO VSDFHG WSHIDFH $FFRUGLQJ WR WKH ZRUG
SURFHVVLQJ VVWHP XVHG WR SUHSDUH LW WKH EULHI WR ZKLFK WKH FHUWLILFDWH LV DWWDFKHG
FRQWDLQV D WRWDO RI ZRUGV H[FOXVLYH RI WKH WDEOH RI FRQWHQWV WDEOH RI
DXWKRULWLHV DQG WKLV FHUWLILFDWH 3XUVXDQW WR 5XOH G $PLFL¶V EULHI LV RQH KDOI
WKH SHUPLVVLEOH OHQJWK RI WKH ZRUGV IRU WKH %ULHI RI $SSHOOHHV XQGHU &LUFXLW
5XOH D %
V 6XVDQ . 6HUUDQR
6XVDQ . 6HUUDQR
$WWRUQH IRU $PLFL &XULDH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 39 of 40
&(57,),&$7( 2) 6(59,&(
, FHUWLI WKDW RQ $XJXVW , HOHFWURQLFDOO ILOHG WKH IRUHJRLQJ
GRFXPHQW ZLWK WKH &OHUN RI WKH &RXUW IRU WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU
WKH 1LQWK &LUFXLW E XVLQJ WKH $SSHOODWH (OHFWURQLF &DVH )LOHV &0 (&) VVWHP
$OO SDUWLFLSDQWV LQ WKH FDVH WKDW DUH UHJLVWHUHG &0 (&) XVHUV ZLOO EH VHUYHG
E WKH &0 (&) VVWHP
7KH IROORZLQJ SDUW LV QRW D UHJLVWHUHG &0 (&) XVHU , KDYH PDLOHG WKH
IRUHJRLQJ GRFXPHQW E )LUVW &ODVV 0DLO SRVWDJH SUHSDLG WR WKH IROORZLQJ
&DWKHULQH /HLODQL $XEXFKRQ
%URQVWHU +RVKLEDWD
%LVKRS 6WUHHW 6XLWH
+RQROXOX +,
'$7(' $XJXVW % V 6XVDQ . 6HUUDQR
6XVDQ . 6HUUDQR
(ULF . <DPDPRWR
'LQD 6KHN
$WWRUQHV IRU $PLFL &XULDH
Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 40 of 40

More Related Content

What's hot

Elgriegoenfichas 1bachillerato-sin membrete-1 copia
Elgriegoenfichas 1bachillerato-sin membrete-1 copiaElgriegoenfichas 1bachillerato-sin membrete-1 copia
Elgriegoenfichas 1bachillerato-sin membrete-1 copia
Francisco Antonio Callejón Rodríguez
 
Pleural and pericardial mesothelioma
Pleural and pericardial mesotheliomaPleural and pericardial mesothelioma
Pleural and pericardial mesothelioma
Abdulsalam Taha
 
Teaching of science
Teaching of scienceTeaching of science
Teaching of science
BEdEnglishEng
 
Hyster c187 (s60 xl) forklift service repair manual
Hyster c187 (s60 xl) forklift service repair manualHyster c187 (s60 xl) forklift service repair manual
Hyster c187 (s60 xl) forklift service repair manual
fujsjefjkskefksem
 
Student Usability in Educational Software and Games: Improving Experiences
Student Usability in Educational Software and Games: Improving ExperiencesStudent Usability in Educational Software and Games: Improving Experiences
Student Usability in Educational Software and Games: Improving Experiences
Carina Soledad Gonzalez
 
Insustry
InsustryInsustry
Sample report celiac serum
Sample report celiac serumSample report celiac serum
Sample report celiac serum
BonnieReynolds4
 
Qabalah: The mystical heritage of the children of Abraham
Qabalah: The mystical heritage of the children of AbrahamQabalah: The mystical heritage of the children of Abraham
Qabalah: The mystical heritage of the children of Abraham
Carlos Campani
 

What's hot (8)

Elgriegoenfichas 1bachillerato-sin membrete-1 copia
Elgriegoenfichas 1bachillerato-sin membrete-1 copiaElgriegoenfichas 1bachillerato-sin membrete-1 copia
Elgriegoenfichas 1bachillerato-sin membrete-1 copia
 
Pleural and pericardial mesothelioma
Pleural and pericardial mesotheliomaPleural and pericardial mesothelioma
Pleural and pericardial mesothelioma
 
Teaching of science
Teaching of scienceTeaching of science
Teaching of science
 
Hyster c187 (s60 xl) forklift service repair manual
Hyster c187 (s60 xl) forklift service repair manualHyster c187 (s60 xl) forklift service repair manual
Hyster c187 (s60 xl) forklift service repair manual
 
Student Usability in Educational Software and Games: Improving Experiences
Student Usability in Educational Software and Games: Improving ExperiencesStudent Usability in Educational Software and Games: Improving Experiences
Student Usability in Educational Software and Games: Improving Experiences
 
Insustry
InsustryInsustry
Insustry
 
Sample report celiac serum
Sample report celiac serumSample report celiac serum
Sample report celiac serum
 
Qabalah: The mystical heritage of the children of Abraham
Qabalah: The mystical heritage of the children of AbrahamQabalah: The mystical heritage of the children of Abraham
Qabalah: The mystical heritage of the children of Abraham
 

Viewers also liked

Kommentarkultur im Online-Journalismus
Kommentarkultur im Online-JournalismusKommentarkultur im Online-Journalismus
Kommentarkultur im Online-Journalismus
quäntchen + glück
 
Tu pediatra.com
Tu pediatra.comTu pediatra.com
Tu pediatra.com
Albino Rojas
 
120506 feldmann igf-d_datenschutz
120506 feldmann igf-d_datenschutz120506 feldmann igf-d_datenschutz
120506 feldmann igf-d_datenschutz
Thorsten Feldmann
 
Telecomunicaciones
TelecomunicacionesTelecomunicaciones
Telecomunicaciones
Deyvi Puerta
 
Jahresrückblick 2010
Jahresrückblick 2010Jahresrückblick 2010
Jahresrückblick 2010
ASKÖ-JUDO-CLUB GRAZ
 
Marketing ene 2012
Marketing ene 2012Marketing ene 2012
Marketing ene 2012
DraEvaCortes
 
Diverse1 geheime papiere von den bilderbergern
Diverse1 geheime papiere von den bilderbergern Diverse1 geheime papiere von den bilderbergern
Diverse1 geheime papiere von den bilderbergern
Chemtrails Spoter
 
Diapositivas
DiapositivasDiapositivas
Diapositivas
robledisblogspot
 
Transporte de sustancias a través de la membrana nº1
Transporte de sustancias a través de la membrana nº1Transporte de sustancias a través de la membrana nº1
Transporte de sustancias a través de la membrana nº1
Nikolás Orellana Ortiz
 
La mujer viuda en la india
La mujer viuda en la indiaLa mujer viuda en la india
La mujer viuda en la india
Mariabaena
 
Manual uso de la sala
Manual uso de la salaManual uso de la sala
Manual uso de la sala
Deyvi Puerta
 
Ilustracion'
Ilustracion'Ilustracion'
Ilustracion'
Valentina Orjuela
 
La familia de Mario Redondo Martínez
La familia de Mario Redondo MartínezLa familia de Mario Redondo Martínez
La familia de Mario Redondo Martínez
PPABADIA
 
2. Klasse ESO Nicolás. Erster Teil
2. Klasse ESO Nicolás. Erster Teil 2. Klasse ESO Nicolás. Erster Teil
2. Klasse ESO Nicolás. Erster Teil
alemangarachico
 
Cuadro comparativo de navegadores
Cuadro comparativo de navegadoresCuadro comparativo de navegadores
Cuadro comparativo de navegadores
Ana Georgina Vidrio Longoria
 
Mapeo y Diversidad entre culturas
Mapeo y Diversidad entre culturasMapeo y Diversidad entre culturas
Mapeo y Diversidad entre culturas
Dayana Torres
 
Commissioning en Mexico
Commissioning en MexicoCommissioning en Mexico
Commissioning en Mexico
Alicia Silva Villanueva
 
Discurso electrónico asincrónico (dea)
Discurso electrónico asincrónico (dea)Discurso electrónico asincrónico (dea)
Discurso electrónico asincrónico (dea)
ezeypablito
 
Trabajo de tecnologia
Trabajo de tecnologiaTrabajo de tecnologia
Trabajo de tecnologia
pablogironpoves
 

Viewers also liked (20)

Kommentarkultur im Online-Journalismus
Kommentarkultur im Online-JournalismusKommentarkultur im Online-Journalismus
Kommentarkultur im Online-Journalismus
 
2012 gpw yapc2012
2012 gpw yapc20122012 gpw yapc2012
2012 gpw yapc2012
 
Tu pediatra.com
Tu pediatra.comTu pediatra.com
Tu pediatra.com
 
120506 feldmann igf-d_datenschutz
120506 feldmann igf-d_datenschutz120506 feldmann igf-d_datenschutz
120506 feldmann igf-d_datenschutz
 
Telecomunicaciones
TelecomunicacionesTelecomunicaciones
Telecomunicaciones
 
Jahresrückblick 2010
Jahresrückblick 2010Jahresrückblick 2010
Jahresrückblick 2010
 
Marketing ene 2012
Marketing ene 2012Marketing ene 2012
Marketing ene 2012
 
Diverse1 geheime papiere von den bilderbergern
Diverse1 geheime papiere von den bilderbergern Diverse1 geheime papiere von den bilderbergern
Diverse1 geheime papiere von den bilderbergern
 
Diapositivas
DiapositivasDiapositivas
Diapositivas
 
Transporte de sustancias a través de la membrana nº1
Transporte de sustancias a través de la membrana nº1Transporte de sustancias a través de la membrana nº1
Transporte de sustancias a través de la membrana nº1
 
La mujer viuda en la india
La mujer viuda en la indiaLa mujer viuda en la india
La mujer viuda en la india
 
Manual uso de la sala
Manual uso de la salaManual uso de la sala
Manual uso de la sala
 
Ilustracion'
Ilustracion'Ilustracion'
Ilustracion'
 
La familia de Mario Redondo Martínez
La familia de Mario Redondo MartínezLa familia de Mario Redondo Martínez
La familia de Mario Redondo Martínez
 
2. Klasse ESO Nicolás. Erster Teil
2. Klasse ESO Nicolás. Erster Teil 2. Klasse ESO Nicolás. Erster Teil
2. Klasse ESO Nicolás. Erster Teil
 
Cuadro comparativo de navegadores
Cuadro comparativo de navegadoresCuadro comparativo de navegadores
Cuadro comparativo de navegadores
 
Mapeo y Diversidad entre culturas
Mapeo y Diversidad entre culturasMapeo y Diversidad entre culturas
Mapeo y Diversidad entre culturas
 
Commissioning en Mexico
Commissioning en MexicoCommissioning en Mexico
Commissioning en Mexico
 
Discurso electrónico asincrónico (dea)
Discurso electrónico asincrónico (dea)Discurso electrónico asincrónico (dea)
Discurso electrónico asincrónico (dea)
 
Trabajo de tecnologia
Trabajo de tecnologiaTrabajo de tecnologia
Trabajo de tecnologia
 

Similar to Amicus brief

Pen test pavol.luptak
Pen test pavol.luptakPen test pavol.luptak
Pen test pavol.luptak
Amiga Utomo
 
Slides clase a_clase
Slides clase a_claseSlides clase a_clase
Slides clase a_clase
llorier
 
New Holland SB62 Grape Harvester Service Repair Manual.pdf
New Holland SB62 Grape Harvester Service Repair Manual.pdfNew Holland SB62 Grape Harvester Service Repair Manual.pdf
New Holland SB62 Grape Harvester Service Repair Manual.pdf
fujskekdmmd
 
New Holland SB64 Grape Harvester Service Repair Manual.pdf
New Holland SB64 Grape Harvester Service Repair Manual.pdfNew Holland SB64 Grape Harvester Service Repair Manual.pdf
New Holland SB64 Grape Harvester Service Repair Manual.pdf
fujskekdmmd
 
New Holland SB56 Grape Harvester Service Repair Manual.pdf
New Holland SB56 Grape Harvester Service Repair Manual.pdfNew Holland SB56 Grape Harvester Service Repair Manual.pdf
New Holland SB56 Grape Harvester Service Repair Manual.pdf
fujskekdmmd
 
New Holland SB60 Grape Harvester Service Repair Manual.pdf
New Holland SB60 Grape Harvester Service Repair Manual.pdfNew Holland SB60 Grape Harvester Service Repair Manual.pdf
New Holland SB60 Grape Harvester Service Repair Manual.pdf
fujskekdmmd
 
New Holland SB58 Grape Harvester Service Repair Manual.pdf
New Holland SB58 Grape Harvester Service Repair Manual.pdfNew Holland SB58 Grape Harvester Service Repair Manual.pdf
New Holland SB58 Grape Harvester Service Repair Manual.pdf
fujskekdmmd
 
New Holland SB36 Grape Harvester Service Repair Manual.pdf
New Holland SB36 Grape Harvester Service Repair Manual.pdfNew Holland SB36 Grape Harvester Service Repair Manual.pdf
New Holland SB36 Grape Harvester Service Repair Manual.pdf
fujskekdmmd
 
CV
CVCV
v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...
v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...
v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...
Andrew Networks
 
Crowley A. The Book Of Thoth[1]
Crowley A.   The Book Of Thoth[1]Crowley A.   The Book Of Thoth[1]
Crowley A. The Book Of Thoth[1]
Miroslaw Duczkowski
 
New holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manualNew holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manual
ufjjskekfmmse
 
New holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manualNew holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manual
fujsjekfkkseme
 
New holland sb62 grape harvester service repair manual
New holland sb62 grape harvester service repair manualNew holland sb62 grape harvester service repair manual
New holland sb62 grape harvester service repair manual
fjjsjefkskemme
 
New holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manualNew holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manual
ufjjskekfmmse
 
New holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manualNew holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manual
ufjjsjefkkekmme
 
New holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manualNew holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manual
fujsekfksmemer
 
New holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manualNew holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manual
fujsjekfkkseme
 
New holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manualNew holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manual
fjjsjefkskemme
 
New holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manualNew holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manual
ufjjsjefkkekmme
 

Similar to Amicus brief (20)

Pen test pavol.luptak
Pen test pavol.luptakPen test pavol.luptak
Pen test pavol.luptak
 
Slides clase a_clase
Slides clase a_claseSlides clase a_clase
Slides clase a_clase
 
New Holland SB62 Grape Harvester Service Repair Manual.pdf
New Holland SB62 Grape Harvester Service Repair Manual.pdfNew Holland SB62 Grape Harvester Service Repair Manual.pdf
New Holland SB62 Grape Harvester Service Repair Manual.pdf
 
New Holland SB64 Grape Harvester Service Repair Manual.pdf
New Holland SB64 Grape Harvester Service Repair Manual.pdfNew Holland SB64 Grape Harvester Service Repair Manual.pdf
New Holland SB64 Grape Harvester Service Repair Manual.pdf
 
New Holland SB56 Grape Harvester Service Repair Manual.pdf
New Holland SB56 Grape Harvester Service Repair Manual.pdfNew Holland SB56 Grape Harvester Service Repair Manual.pdf
New Holland SB56 Grape Harvester Service Repair Manual.pdf
 
New Holland SB60 Grape Harvester Service Repair Manual.pdf
New Holland SB60 Grape Harvester Service Repair Manual.pdfNew Holland SB60 Grape Harvester Service Repair Manual.pdf
New Holland SB60 Grape Harvester Service Repair Manual.pdf
 
New Holland SB58 Grape Harvester Service Repair Manual.pdf
New Holland SB58 Grape Harvester Service Repair Manual.pdfNew Holland SB58 Grape Harvester Service Repair Manual.pdf
New Holland SB58 Grape Harvester Service Repair Manual.pdf
 
New Holland SB36 Grape Harvester Service Repair Manual.pdf
New Holland SB36 Grape Harvester Service Repair Manual.pdfNew Holland SB36 Grape Harvester Service Repair Manual.pdf
New Holland SB36 Grape Harvester Service Repair Manual.pdf
 
CV
CVCV
CV
 
v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...
v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...
v20200506 SAGA Foundation Africa Youth4Global Goals SDGs Agenda 2063 Presenta...
 
Crowley A. The Book Of Thoth[1]
Crowley A.   The Book Of Thoth[1]Crowley A.   The Book Of Thoth[1]
Crowley A. The Book Of Thoth[1]
 
New holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manualNew holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manual
 
New holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manualNew holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manual
 
New holland sb62 grape harvester service repair manual
New holland sb62 grape harvester service repair manualNew holland sb62 grape harvester service repair manual
New holland sb62 grape harvester service repair manual
 
New holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manualNew holland sb56 grape harvester service repair manual
New holland sb56 grape harvester service repair manual
 
New holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manualNew holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manual
 
New holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manualNew holland sb36 grape harvester service repair manual
New holland sb36 grape harvester service repair manual
 
New holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manualNew holland sb58 grape harvester service repair manual
New holland sb58 grape harvester service repair manual
 
New holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manualNew holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manual
 
New holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manualNew holland sb60 grape harvester service repair manual
New holland sb60 grape harvester service repair manual
 

More from Honolulu Civil Beat

Gov. David Ige response to U.S. Rep. Anna Eshoo
Gov. David Ige response to U.S. Rep. Anna EshooGov. David Ige response to U.S. Rep. Anna Eshoo
Gov. David Ige response to U.S. Rep. Anna Eshoo
Honolulu Civil Beat
 
Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...
Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...
Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...
Honolulu Civil Beat
 
Audit of the Honolulu Police Department’s Policies, Procedures, and Controls
Audit of the Honolulu Police Department’s Policies, Procedures, and ControlsAudit of the Honolulu Police Department’s Policies, Procedures, and Controls
Audit of the Honolulu Police Department’s Policies, Procedures, and Controls
Honolulu Civil Beat
 
2019 Use of Force Annual Report HPD
2019 Use of Force Annual Report HPD 2019 Use of Force Annual Report HPD
2019 Use of Force Annual Report HPD
Honolulu Civil Beat
 
Office of Health Equity Goals Draft 10
Office of Health Equity Goals Draft 10Office of Health Equity Goals Draft 10
Office of Health Equity Goals Draft 10
Honolulu Civil Beat
 
NHPI COVID-19 Statement
NHPI COVID-19 StatementNHPI COVID-19 Statement
NHPI COVID-19 Statement
Honolulu Civil Beat
 
DLIR Response Language Access
DLIR Response Language AccessDLIR Response Language Access
DLIR Response Language Access
Honolulu Civil Beat
 
Language Access Letter To DLIR
Language Access Letter To DLIRLanguage Access Letter To DLIR
Language Access Letter To DLIR
Honolulu Civil Beat
 
ACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profilingACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profiling
Honolulu Civil Beat
 
ACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profilingACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profiling
Honolulu Civil Beat
 
Jane Doe v. Rehab Hospital
Jane Doe v. Rehab HospitalJane Doe v. Rehab Hospital
Jane Doe v. Rehab Hospital
Honolulu Civil Beat
 
Coronavirus HPHA
Coronavirus HPHA Coronavirus HPHA
Coronavirus HPHA
Honolulu Civil Beat
 
OHA Data Request
OHA Data RequestOHA Data Request
OHA Data Request
Honolulu Civil Beat
 
Letter from Palau to Guam
Letter from Palau to GuamLetter from Palau to Guam
Letter from Palau to Guam
Honolulu Civil Beat
 
Guam Governor's Letter to Pence
Guam Governor's Letter to Pence Guam Governor's Letter to Pence
Guam Governor's Letter to Pence
Honolulu Civil Beat
 
OHA Analysis by Akina
OHA Analysis by AkinaOHA Analysis by Akina
OHA Analysis by Akina
Honolulu Civil Beat
 
Case COFA Letter
Case COFA LetterCase COFA Letter
Case COFA Letter
Honolulu Civil Beat
 
List Of Pro Bono Legal Service Providers
List Of Pro Bono Legal Service ProvidersList Of Pro Bono Legal Service Providers
List Of Pro Bono Legal Service Providers
Honolulu Civil Beat
 
Arbitration Hearing Transcript December 2018
Arbitration Hearing Transcript December 2018Arbitration Hearing Transcript December 2018
Arbitration Hearing Transcript December 2018
Honolulu Civil Beat
 
Caldwell Press Release
Caldwell Press ReleaseCaldwell Press Release
Caldwell Press Release
Honolulu Civil Beat
 

More from Honolulu Civil Beat (20)

Gov. David Ige response to U.S. Rep. Anna Eshoo
Gov. David Ige response to U.S. Rep. Anna EshooGov. David Ige response to U.S. Rep. Anna Eshoo
Gov. David Ige response to U.S. Rep. Anna Eshoo
 
Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...
Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...
Audit of the Department of the Honolulu Prosecuting Attorney’s Policies, Proc...
 
Audit of the Honolulu Police Department’s Policies, Procedures, and Controls
Audit of the Honolulu Police Department’s Policies, Procedures, and ControlsAudit of the Honolulu Police Department’s Policies, Procedures, and Controls
Audit of the Honolulu Police Department’s Policies, Procedures, and Controls
 
2019 Use of Force Annual Report HPD
2019 Use of Force Annual Report HPD 2019 Use of Force Annual Report HPD
2019 Use of Force Annual Report HPD
 
Office of Health Equity Goals Draft 10
Office of Health Equity Goals Draft 10Office of Health Equity Goals Draft 10
Office of Health Equity Goals Draft 10
 
NHPI COVID-19 Statement
NHPI COVID-19 StatementNHPI COVID-19 Statement
NHPI COVID-19 Statement
 
DLIR Response Language Access
DLIR Response Language AccessDLIR Response Language Access
DLIR Response Language Access
 
Language Access Letter To DLIR
Language Access Letter To DLIRLanguage Access Letter To DLIR
Language Access Letter To DLIR
 
ACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profilingACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profiling
 
ACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profilingACLU Letter to HPD regarding racial profiling
ACLU Letter to HPD regarding racial profiling
 
Jane Doe v. Rehab Hospital
Jane Doe v. Rehab HospitalJane Doe v. Rehab Hospital
Jane Doe v. Rehab Hospital
 
Coronavirus HPHA
Coronavirus HPHA Coronavirus HPHA
Coronavirus HPHA
 
OHA Data Request
OHA Data RequestOHA Data Request
OHA Data Request
 
Letter from Palau to Guam
Letter from Palau to GuamLetter from Palau to Guam
Letter from Palau to Guam
 
Guam Governor's Letter to Pence
Guam Governor's Letter to Pence Guam Governor's Letter to Pence
Guam Governor's Letter to Pence
 
OHA Analysis by Akina
OHA Analysis by AkinaOHA Analysis by Akina
OHA Analysis by Akina
 
Case COFA Letter
Case COFA LetterCase COFA Letter
Case COFA Letter
 
List Of Pro Bono Legal Service Providers
List Of Pro Bono Legal Service ProvidersList Of Pro Bono Legal Service Providers
List Of Pro Bono Legal Service Providers
 
Arbitration Hearing Transcript December 2018
Arbitration Hearing Transcript December 2018Arbitration Hearing Transcript December 2018
Arbitration Hearing Transcript December 2018
 
Caldwell Press Release
Caldwell Press ReleaseCaldwell Press Release
Caldwell Press Release
 

Amicus brief

  • 1. BBBBBBBBBBBBBBBBBBBBBBBBB 12 BBBBBBBBBBBBBBBBBBBBBBBBB ,1 7+( 81,7(' 67$7(6 &2857 2) $33($/6 )25 7+( 1,17+ &,5&8,7 BBBBBBBBBBBBBBBBBBBBBBBBB 721< .25$% HW DO 3ODLQWLIIV $SSHOOHHV Y 3$75,&,$ 0F0$1$0$1 LQ KHU RIILFLDO FDSDFLW DV 'LUHFWRU RI WKH 6WDWH RI +DZDLµL 'HSDUWPHQW RI +XPDQ 6HUYLFHV DQG .(11(7+ ),1. LQ KLV RIILFLDO FDSDFLW DV 6WDWH RI +DZDLµL 'HSDUWPHQW RI +XPDQ 6HUYLFHV 0HG 48(67 'LYLVLRQ $GPLQLVWUDWRU 'HIHQGDQWV $SSHOODQWV BBBBBBBBBBBBBBBBBBBBBBBBB $0,&, &85,$( %5,() 2) 7+( -$3$1(6( $0(5,&$1 &,7,=(16 /($*8( +212/8/8 &+$37(5 7+( 1$7,21$/ $662&,$7,21 )25 7+( $'9$1&(0(17 2) &2/25(' 3(23/( +212/8/8 %5$1&+ $1' .2.8$ .$/,+, 9$//(< &2035(+(16,9( )$0,/< 6(59,&(6 ,1 6833257 2) 3/$,17,))6 $33(//((6 BBBBBBBBBBBBBBBBBBBBBBBBB 2Q $SSHDO IURP WKH ,QWHUORFXWRU 2UGHU *UDQWLQJ D 3UHOLPLQDU ,QMXQFWLRQ RI WKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH 'LVWULFW RI +DZDLµL &DVH 1R ' & 1R FY -06 .6& BBBBBBBBBBBBBBBBBBBBBBBBB 6XVDQ . 6HUUDQR (ULF . <DPDPRWR 'LQD 6KHN 'ROH 6WUHHW +RQROXOX +, $WWRUQHV IRU $PLFL &XULDH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 1 of 40
  • 2. LL 7$%/( 2) &217(176 7$%/( 2) $87+25,7,(6 LY ,17(5(67 2) $0,&, $5*80(17 , 6LQFH :RUOG :DU ,, 0LFURQHVLDQV 6XIIHUHG *UDYH ,QMXVWLFHV 7KDW +DYH 'HFLPDWHG .H 3DUWV RI WKH 6RFLDO DQG (FRQRPLF 6WUXFWXUH RI 7KHLU +RPHODQGV 6LJQLILFDQWO 'DPDJHG WKH +HDOWK RI 0DQ DQG &RPSHOOHG 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI $GHTXDWH +HDOWKFDUH ,, 7KH 0XOWLIDFHWHG 'DPDJHV WR &2)$ 5HVLGHQWV $UH ([DFHUEDWHG % WKH 8QLWHG 6WDWHV¶ %UHDFK RI LWV 'XW WR 3URPRWH 0LFURQHVLDQ 6HOI 6XIILFLHQF DQG % LWV &RQWLQXLQJ )DLOXUH WR 'LVFKDUJH LWV $FNQRZOHGJHG 5HVSRQVLELOLW WR 5HSDLU WKH 'DPDJH $ 7KH &2)$ 5HVLGHQWV¶ 3RRU +HDOWK LV /LQNHG WR WKH 8QLWHG 6WDWHV¶ %UHDFK RI LWV 7UXVW DQG &RPSDFW 'XWLHV WR 3URPRWH 0LFURQHVLDQ :HOIDUH DQG $GYDQFHPHQW DQG WR WKH 0LFURQHVLDQV¶ 5HVXOWLQJ (FRQRPLF 'HSHQGHQF DQG $FTXLHVFHQFH WR D 'DPDJLQJ 8QLWHG 6WDWHV 0LOLWDU DQG 1XFOHDU 3UHVHQFH 7KDW 6HUYHV 8 6 ,QWHUHVWV % 7KURXJK WKH &2)$ WKH 8QLWHG 6WDWHV KDV 3DUWLDOO $WWHPSWHG WR 5HSDLU WKH 'DPDJH %XW ,W +DV )DLOHG WR 'LVFKDUJH 7KLV 5HVSRQVLELOLW DQG ,Q 6RPH :DV ,WV 3DUWLDO $PHOLRUDWLYH (IIRUWV +DYH :RUVHQHG WKH 6LWXDWLRQ IRU 0LFURQHVLDQV LQ 7KHLU +RPHODQGV &DXVLQJ 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI +HDOWK &DUH ,,, $V D &RQVWLWXHQW 0HPEHU RI WKH 8QLWHG 6WDWHV DQG $V 5HFLSLHQW RI 6XEVWDQWLDO )HGHUDO 'ROODUV WR &RYHU WKH ,PSDFWV RI &2)$ 5HVLGHQWV ,QFOXGLQJ +HDOWK 1HHGV WKH 6WDWH RI +DZDL‫ދ‬L %HDUV -RLQW 5HVSRQVLELOLW IRU 0LFURQHVLDQV LQ +DZDL‫ދ‬L IRU 'HVSHUDWHO 1HHGHG 2IWHQ /LIH 2U 'HDWK 0HGLFDO &DUH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 2 of 40
  • 3. LLL ,9 ,Q /LJKW RI WKH 6WDWH¶V %URDGHU &RPPLWPHQW WR 5HSDLULQJ 8QMXVW 'DPDJH WR &RPPXQLW 0HPEHUV IRU WKH %HQHILW RI $OO WKH 6WDWH %HDUV D 0RUDO $V :HOO $V /HJDO 5HVSRQVLELOLW WR &RQWLQXH D 0HDQLQJIXO /HYHO RI 0HGLFDO &DUH &RYHUDJH IRU 0LFURQHVLDQV $ 3URYLGLQJ )LQDQFLDO 6XSSRUW IRU &2)$ 5HVLGHQWV¶ 0HGLFDO &DUH LV D 0RUDO 2EOLJDWLRQ WKDW )XUWKHUV +DZDLµL¶V &RPPLWPHQW WR -XVWLFH IRU &RPPXQLW 0HPEHUV % 'LVFKDUJLQJ WKH 6WDWH¶V 5HVSRQVLELOLW :LOO 3URSHUO %DODQFH WKH (TXLWLHV LQ )DYRU RI WKH 0LFURQHVLDQ 3HRSOH DQG :LOO )XUWKHU WKH 3XEOLF ,QWHUHVW &21&/86,21 &(57,),&$7( 2) &203/,$1&( Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 3 of 40
  • 4. LY 7$%/( 2) $87+25,7,(6 &$6(6 ,QGHS /LYLQJ &WU RI 6 &DOLIRUQLD ,QF Y 0D[ZHOO -ROO ) G WK &LU -XGD Y 8 6 &O &W 3HRSOH RI %LNLQL Y 8 6 )HG &O DII¶G ) G )HG &LU 3HRSOH RI (QHZHWDN Y 8QLWHG 6WDWHV ) G )HG &LU 6WDWH Y 0DNZDQDQH %&/5 && 6 $IU 67$787(6 8 6 & † 8 6 & † 8 6 & † &RPSDFW RI )UHH $VVRFLDWLRQ 8 6 0LFURQHVLD 0DUVKDOO ,VODQGV 3XE / 1R 6WDW FRGLILHG DV DPHQGHG 8 6 & † &RPSDFW RI )UHH $VVRFLDWLRQ 8 6 3DODX 3XE / 1R 6WDW FRGLILHG DV DPHQGHG 8 6 & † &RPSDFW RI )UHH $VVRFLDWLRQ ZLWK 0LFURQHVLD DQG WKH 0DUVKDOO ,VODQGV 3XE / 1R 6WDW FRGLILHG DV DPHQGHG 8 6 & † 7UXVWHHVKLS $JUHHPHQW IRU WKH )RUPHU -DSDQHVH 0DQGDWHG ,VODQGV -XO 6WDW +DZ 5HY 6WDW † Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 4 of 40
  •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µL 8QLQVXUHG 3URMHFW +DZDLµL ,QVWLWXWH IRU 3XEOLF $IIDLUV ,PSDFWV RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ RQ +DZDLµL¶V +HDOWK &DUH 6VWHP =RKO Gp ,VKWDU $ 6XUYLYRU¶V :DUQLQJ RQ 1XFOHDU &RQWDPLQDWLRQ 3DF (FRORJLVW 'DUOHQH .HMX -RKQVRQ )RU WKH *RRG RI 0DQNLQG 6HDWWOH - 6RF -XVW &DWKHULQH /XW] 7KH &RPSDFW RI )UHH $VVRFLDWLRQ 0LFURQHVLDQ 1RQ ,QGHSHQGHQFH DQG 8 6 3ROLF %XOO RI &RQFHUQHG $VLDQ 6FK Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 5 of 40
  • 6. YL 'RQDOG ) 0F+HQU 0LFURQHVLD 7UXVW %HWUDHG ± $OWUXLVP YV 6HOI ,QWHUHVW LQ $PHULFDQ )RUHLJQ 3ROLF -RKQ % 0HWHOVNL 0LFURQHVLD DQG )UHH $VVRFLDWLRQ &DQ )HGHUDOLVP 6DYH 7KHP" &DO : ,QW¶O / - 3DWV 7 0LQN 0LFURQHVLD 2XU %XQJOHG 7UXVW 7H[ ,QW¶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µL 3DUW $Q $VVHVVPHQW RI +HDOWK /DQJXDJH DQG .H 6RFLDO 'HWHUPLQDQWV RI +HDOWK &DO - RI +HDOWK 3URPRWLRQ 6KHOGRQ 5LNORQ 0 ' HW DO 7KH ³&RPSDFW ,PSDFW´ LQ +DZDLµL )RFXV RQ +HDOWK &DUH +DZDLµL 0HG - -XQH (GLEHUWR 5RPiQ 7KHURQ 6LPPRQV 0HPEHUVKLS 'HQLHG 6XERUGLQDWLRQ DQG 6XEMXJDWLRQ 8QGHU 8QLWHG 6WDWHV ([SDQVLRQLVP 6DQ 'LHJR / 5HY $DURQ 6DXQGHUV HW DO +HDOWK DV D +XPDQ 5LJKW :KR LV (OLJLEOH" +DZDLµL 0HG - -XQH 6WDWH RI +DZDL‫ދ‬L 'HSDUWPHQW RI WKH $WWRUQH *HQHUDO Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 6 of 40
  • 7. YLL )LQDO 5HSRUW RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ 7DVN )RUFH 8 6 &HQVXV %XUHDX )LQDO 5HSRUW (VWLPDWHV RI &RPSDFW RI )UHH $VVRFLDWLRQ &2)$ 0LJUDQWV $SULO 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 7 &RPSDFW RI )UHH $VVRFLDWLRQ $Q $VVHVVPHQW RI WKH $PHQGHG &RPSDFWV DQG 5HODWHG $JUHHPHQWV 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 &RPSDFWV RI )UHH $VVRFLDWLRQ 'HYHORSPHQW 3URVSHFWV 5HPDLQ /LPLWHG IRU 0LFURQHVLD DQG 0DUVKDOO ,VODQGV 8 6 *RY¶W $FFRXQWDELOLW 2IILFH 7 16,$' 5&(' )RUHLJQ $VVLVWDQFH 8 6 )XQGV WR 7ZR 0LFURQHVLDQ 1DWLRQV +DG /LWWOH ,PSDFW RQ (FRQRPLF 'HYHORSPHQW DQG $FFRXQWDELOLW 2YHU )XQGV :DV /LPLWHG 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 )RUHLJQ 5HODWLRQV .ZDMDOHLQ $WROO ,V WKH .H 8 6 'HIHQVH ,QWHUHVW LQ 7ZR 0LFURQHVLDQ 1DWLRQV 8 6 *RY¶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ase: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 7 of 40
  •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µL DUH KRQRUHG 7KH 1DWLRQDO $VVRFLDWLRQ IRU WKH $GYDQFHPHQW RI &RORUHG 3HRSOH 1$$&3 D QRQ SURILW DQG QRQ SDUWLVDQ RUJDQL]DWLRQ LV WKH QDWLRQ¶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¶V JURZLQJ $VLDQ DQG 3DFLILF ,VODQG LPPLJUDQW SRSXODWLRQV ..9 SURYLGHV FRPSUHKHQVLYH PHGLFDO DQG FRPPXQLW KHDOWK VHUYLFHV WR Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 8 of 40
  • 9. UHVLGHQWV RI GLYHUVH DQFHVWU LQFOXGLQJ D IDVW JURZLQJ 0LFURQHVLDQ SDWLHQW SRSXODWLRQ 3XUVXDQW WR &LUFXLW 5XOH DOO SDUWLHV KDYH FRQVHQWHG WR WKH ILOLQJ RI WKLV EULHI 1R SDUW¶V FRXQVHO DXWKRUHG WKLV EULHI LQ ZKROH RU LQ SDUW QR SDUW RU SDUW¶V FRXQVHO FRQWULEXWHG PRQH WKDW ZDV LQWHQGHG WR IXQG SUHSDULQJ RU VXEPLWWLQJ WKH EULHI DQG QR SHUVRQ RWKHU WKDQ WKH DPLFL FXULDH LWV PHPEHUV RU LWV FRXQVHO FRQWULEXWHG PRQH WKDW ZDV LQWHQGHG WR IXQG SUHSDULQJ RU VXEPLWWLQJ WKH EULHI Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 9 of 40
  • 10. $5*80(17 7KLV FDVH LV XQLTXH ,W LV QRW DERXW VWDWH EHQHILWV IRU LPPLJUDQWV 1RU LV LW DERXW ZHOIDUH IRU WKRVH LQ QHHG 5DWKHU LW LV DERXW UHSDLULQJ WKH SHUVLVWLQJ GDPDJH RI LQMXVWLFH XQLTXHO VXIIHUHG E WKH SHRSOH RI WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD )60 WKH 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV 50, DQG WKH 5HSXEOLF RI 3DODX 3DODX ± SHRSOH ZLWK ZKRP WKH 8QLWHG 6WDWHV DQG 6WDWH RI +DZDL‫ދ‬L KDYH D ORQJ VWDQGLQJ VSHFLDO UHODWLRQVKLS $V WUXVWHH IRU WKH 7UXVW 7HUULWRU RI WKH 3DFLILF ,VODQGV WKH 8QLWHG 6WDWHV LQ WKH ODWH V DQG V OHWKDOO SXUVXHG LWV RZQ LQWHUHVW E WHVWLQJ QXFOHDU ERPEV RQ VHOHFW 3DFLILF LVODQGV GHYDVWDWLQJ QRW RQO WKH 0DUVKDOOHVH KRPHODQGV EXW DOVR WKH KHDOWK RI WKH 0DUVKDOOHVH DQG 0LFURQHVLDQ SHRSOH IRU HQVXLQJ GHFDGHV 7KH 8 6 DOVR EUHDFKHG LWV DFNQRZOHGJHG WUXVW GXW E IDLOLQJ WR SURPRWH 0LFURQHVLDQ VHOI VXIILFLHQF DQG LQGHSHQGHQFH DQG LQVWHDG E IRVWHULQJ HFRQRPLF DQG KHDOWKFDUH GHSHQGHQF RQ WKH 8 6 LQ RUGHU WR VHFXUH 0LFURQHVLDQ DFTXLHVFHQFH WR FRQWLQXHG 8 6 PLOLWDU DQG QXFOHDU SUHVHQFH RQ WKH LVODQGV 2QH FRQVHTXHQFH RI WKHVH EUHDFKHV WKH QHHG RI 0LFURQHVLDQV WR PLJUDWH WR +DZDLµL DQG HOVHZKHUH LQ VHDUFK RI GHVSHUDWHO QHHGHG KHDOWK FDUH IRU VHYHUH PHGLFDO FRQGLWLRQV 7KLV EULHI XVHV ³0LFURQHVLDQ ´ ³&2)$ UHVLGHQWV´ RU ³&2)$ PLJUDQWV´ WR LQFOXGH DOO &2)$ QDWLRQ PLJUDQWV LQFOXGLQJ SHRSOHV IURP WKH )60 50, DQG 3DODX ,W DOVR IRFXVHV SULPDULO RQ WKH )60 DQG 50, ZKLOH 3DODXDQV DUH DOVR DIIHFWHG E WKH 6WDWH¶V DFWLRQV WKHUH DUH IHZHU 3DODXDQV LPSDFWHG E WKH LVVXHV DGGUHVVHG Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 10 of 40
  • 11. ,Q UHFRJQLWLRQ RI WKHVH LQMXVWLFHV DV SDUW RI LWV &RPSDFWV RI )UHH $VVRFLDWLRQ &2)$ ZLWK WKH 0LFURQHVLDQ JRYHUQPHQWV LQ WKH 8QLWHG 6WDWHV FRPPLWWHG WR UHSDLU WKH SHUVLVWLQJ GDPDJH LQFOXGLQJ DOORZLQJ 0LFURQHVLDQ SHRSOH WR ³HVWDEOLVK UHVLGHQFH´ LQ +DZDL‫ދ‬L DQG RWKHU VWDWHV DQG WHUULWRULHV ³DV QRQ LPPLJUDQWV ´ $QG PDQ KDYH WUDYHOHG WR WKHVH SODFHV WR UHFHLYH DPRQJ RWKHU WKLQJV QHHGHG PHGLFDO FDUH %XW LQ WKH 8 6 SHUSHWXDWHG WKH LQMXVWLFHV E WHUPLQDWLQJ 0HGLFDLG IXQGLQJ IRU 0LFURQHVLDQ SHRSOH 7KH 6WDWH RI +DZDLµL DV D FRQVWLWXHQW PHPEHU RI WKH 8 6 EHDUV MRLQW UHVSRQVLELOLW IRU 0LFURQHVLDQV LQ +DZDL‫ދ‬L ZKR DUH QRW LPPLJUDQWV IRU RIWHQ OLIH RU GHDWK PHGLFDO FDUH 7KH 6WDWH¶V UHVSRQVLELOLW VWDQGV RQ WZR OHJV )LUVW WKH 6WDWH¶V UHVSRQVLELOLW OLHV LQ LWV DFFHSWDQFH RI IHGHUDO IXQGV SDUWLDOO IRU 0LFURQHVLDQ KHDOWK FDUH DV SDUW RI WKH 8QLWHG 6WDWHV¶ MXVWLFH FRPPLWPHQW WR WKH 0LFURQHVLDQ SHRSOH 7R LWV FUHGLW ZKHQ WKH IHGHUDO JRYHUQPHQW WHUPLQDWHG 0HGLFDLG FRYHUDJH IRU 0LFURQHVLDQ SHRSOH WKH 6WDWH LQLWLDOO VWHSSHG XS WR DVVXUH WKH SURPLVHG DQG QHHGHG PHGLFDO FDUH +DZDLµL UHFHLYHG RYHU PLOOLRQ VLQFH LQ SDUW DV FRPSHQVDWLRQ IRU FRVWV RI KHDOWK FDUH IRU 0LFURQHVLDQV ,W FRQWLQXHV WR UHFHLYH IHGHUDO IXQGV HYHQ WKRXJK WKRVH IXQGV GR QRW IXOO FRYHU KHDOWK FRVWV /LNH PRVW RI WKH UHVW RI XV PDQ 0LFURQHVLDQV LQ +DZDLµL SD 6WDWH WD[HV DQG SURGXFWLYHO FRQWULEXWH WR WKH 6WDWH¶V HFRQRP 7KH 6WDWH WKXV EHDUV MRLQW UHVSRQVLELOLW WR SURYLGH D PHDQLQJIXO OHYHO RI Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 11 of 40
  • 12. KHDOWK FDUH FRYHUDJH SDUWLFXODUO IRU WKRVH ZLWK OLIH WKUHDWHQLQJ FDQFHU DGYDQFHG GLDEHWHV NLGQH IDLOXUH DQG KHDUW GLVHDVH 0RUH VSHFLILFDOO DQG GLUHFWO UHOHYDQW WR WKH LQVWDQW FDVH WKH 6WDWH EHDUV WKH UHVSRQVLELOLW QRW WR H[FOXGH 0LFURQHVLDQ PLJUDQWV ± DQG RQO 0LFURQHVLDQ PLJUDQWV ± IURP QHHGHG KHDOWK FDUH FRYHUDJH LQ +DZDL‫ދ‬L 6HFRQG WKH PRUDO JURXQGLQJ IRU WKH 6WDWH¶V MRLQW UHVSRQVLELOLW WR 0LFURQHVLDQV OLHV LQ WKH 6WDWH¶V FRPPLWPHQW WKURXJK ODZ WR WKH LGHD WKDW ³HDFK SHUVRQ LV LPSRUWDQW WR HYHU RWKHU SHUVRQ IRU >RXU@ FROOHFWLYH H[LVWHQFH ´ 6HH +DZ 5HY 6WDW † D E 7KDW FRPPLWPHQW HPHUJHV RXW RI WKH +DZDLµL OHJLVODWXUH¶V GLUHFWLYH WR MXGJHV OHJLVODWRUV DQG JRYHUQPHQW DGPLQLVWUDWRUV WKDW ³>L@Q H[HUFLVLQJ WKHLU SRZHU RQ EHKDOI RI WKH SHRSOH DQG LQ IXOILOOPHQW RI WKHLU UHVSRQVLELOLWLHV´ WKH FRQWHPSODWH WKH LGHD RI ³$ORKD´ DQG DFW WR SURPRWH ³WKH HVVHQFH RI UHODWLRQVKLSV LQ ZKLFK HDFK SHUVRQ LV LPSRUWDQW WR HYHU RWKHU SHUVRQ IRU FROOHFWLYH H[LVWHQFH ´ ,G +DZDL‫ދ‬L ODZ WKXV LQVWUXFWV GHFLVLRQPDNHUV WR HPEUDFH WKH YDOXH WKDW RXU ³FROOHFWLYH H[LVWHQFH´ DV DQ LVODQG FRPPXQLW GHSHQGV XSRQ RXU IDLU WUHDWPHQW RI ³HDFK SHUVRQ´ DPRQJ XV $QG WKLV DSSOLHV ZLWK IRUFH WR 0LFURQHVLDQV LQ +DZDLµL VHHNLQJ EDGO QHHGHG PHGLFDO FDUH WKDW LV SDUWO DWWULEXWDEOH WR DFNQRZOHGJHG LQMXVWLFH 7KLV 6WDWH FRPPLWPHQW LV DQ H[WHQVLRQ RI WKH 6RXWK $IULFDQ FRQFHSW RI ³XEXQWX´ WKDW JXLGHG WKH 7UXWK DQG 5HFRQFLOLDWLRQ &RPPLVVLRQ¶V HIIRUWV WR KHDO WKH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 12 of 40
  • 13. SHUVLVWLQJ ZRXQGV RI DSDUWKHLG QR RQH FDQ EH KHDOWK ZKHQ DQ LQ WKH FRPPXQLW DUH VLFN ± ³8EXQWX VDV , DP KXPDQ RQO EHFDXVH RX DUH KXPDQ ,I , XQGHUPLQH RXU KXPDQLW , GHKXPDQLVH PVHOI ´ 6HH (ULF . <DPDPRWR 5DFH $SRORJLHV - *HQGHU 5DFH -XVW FLWDWLRQ RPLWWHG 8EXQWX WKXV ³FKDUDFWHUL]HV MXVWLFH DV FRPPXQLW UHVWRUDWLRQ ± WKH UHEXLOGLQJ RI WKH FRPPXQLW WR >KHDO@ WKRVH KDUPHG´ DQG WR LQFOXGH WKRVH ³IRUPHUO H[FOXGHG ´ ,G 6HH DOVR 6WDWH Y 0DNZDQDQH %&/5 && DW SDUD 6 $IU ³DQ RXWVWDQGLQJ IHDWXUH RI XEXQWX LQ D FRPPXQLW VHQVH LV WKH YDOXH LW SXWV RQ OLIH DQG KXPDQ GLJQLW >7@KH OLIH RI DQRWKHU SHUVRQ LV DW OHDVW DV YDOXDEOH DV RQH¶V RZQ 5HVSHFW IRU WKH GLJQLW RI HYHU SHUVRQ LV LQWHJUDO WR WKLV FRQFHSW ´ 7KLV H[SUHVVHG FRPPLWPHQW RI WKH 6WDWH RI +DZDLµL DV D FRQVWLWXHQW PHPEHU RI WKH 8QLWHG 6WDWHV DORQJ ZLWK LWV UHFHLSW RI IHGHUDO IXQGV SURYLGH OHJDO DQG PRUDO FRUQHUVWRQHV IRU ERWK D WKH 6WDWH¶V REOLJDWLRQ WR FRQWLQXH PHGLFDO FDUH FRYHUDJH WR 0LFURQHVLDQ SHRSOH DPRQJ XV LQ RUGHU WR SDUWLDOO UHSDLU WKH GDPDJH RI SHUYDVLYH DQG ORQJVWDQGLQJ LQMXVWLFHV DQG E WKH GHWHUPLQDWLRQ WKDW WKH WKLUG DQG IRXUWK SUHOLPLQDU LQMXQFWLRQ IDFWRUV ± WKH EDODQFLQJ RI HTXLWLHV DQG WKH SXEOLF LQWHUHVW ± WLOW VKDUSO LQ IDYRU RI DIILUPLQJ WKH GLVWULFW FRXUW¶V SUHOLPLQDU LQMXQFWLRQ , 6LQFH :RUOG :DU ,, 0LFURQHVLDQV 6XIIHUHG *UDYH ,QMXVWLFHV 7KDW +DYH 'HFLPDWHG .H 3DUWV RI WKH 6RFLDO DQG (FRQRPLF 6WUXFWXUH RI 7KHLU +RPHODQGV 6LJQLILFDQWO 'DPDJHG WKH +HDOWK RI 0DQ DQG &RPSHOOHG 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI $GHTXDWH +HDOWKFDUH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 13 of 40
  • 14. 7KH &2)$ UHVLGHQWV ZKR ZHUH GLVHQUROOHG IURP WKHLU 6WDWH KHDOWK EHQHILWV SURJUDPV DQG PRYHG WR WKH %DVLF +HDOWK +DZDLL %++ SODQ DUH QRW ³RUGLQDU´ LPPLJUDQWV ,Q IDFW WKH DUH QRW ³LPPLJUDQWV´ DW DOO 7KH SHRSOH WUDQVIHUUHG WR WKH QHZ DQG VLJQLILFDQWO LQDGHTXDWH KHDOWKFDUH SODQ DUH PLJUDQWV IURP WKUHH LVODQG QDWLRQV LQ WKH 3DFLILF 2FHDQ WKH )60 50, DQG 3DODX 8QOLNH WKH XVXDO SXVK SXOO IDFWRUV GULYLQJ RWKHU LPPLJUDQWV WR WKH 8QLWHG 6WDWHV 0LFURQHVLDQV ZHUH HVVHQWLDOO IRUFHG WR WKH 8 6 DIWHU GHFDGHV RI IDLOHG 8 6 WUXVWHHVKLS DQG ERWFKHG RYHUVLJKW WKDW FRQWLQXHG ZHOO DIWHU WKH HQDFWPHQW RI WKH &2)$ DJUHHPHQWV 7KH +DZDLµL VWDWH KHDOWKFDUH VWUXJJOHV UHSUHVHQW WKH IDLOXUH RI WKH ORQJ VWDWHG DQG VHOI GHFODUHG 8 6 REOLJDWLRQ RI SURPRWLQJ DQG VXSSRUWLQJ 0LFURQHVLDQ LQGHSHQGHQFH DQG VHOI VXIILFLHQF $QG WKH 6WDWH FXWV WR OLIH VDYLQJ KHDOWKFDUH VPEROL]H WKH JRYHUQPHQW¶V IDLOXUH WR IXOILOO WKLV REOLJDWLRQ 7KH 0DUVKDOOHVH LQ SDUWLFXODU VXIIHUHG WKH JUDYHVW LQMXVWLFHV )RU WZHOYH HDUV IURP WR WKH 8QLWHG 6WDWHV H[SORGHG DWRPLF DQG KGURJHQ ERPEV RQ %LNLQL DQG (QHZHWDN DWROOV 1LQH LVODQGV ZHUH FRPSOHWHO RU SDUWLDOO YDSRUL]HG 6HH +HDULQJ %HIRUH WKH 6XEFRPP RQ $VLD WKH 3DFLILF DQG WKH *OREDO (QYLURQPHQW RI WKH + &RPP RQ )RUHLJQ $IIDLUV WK &RQJ VWDWHPHQW RI -RQDWKDQ 0 :HLVJDOO /HJDO &RXQVHO IRU WKH 3HRSOH RI %LNLQL DW ³:HLVJDOO WHVWLPRQ´ 7KH PRVW SRZHUIXO WHVW ZDV ³%UDYR ´ D ILIWHHQ PHJDWRQ GHYLFH ± HTXLYDOHQW WR +LURVKLPD ERPEV ± GHWRQDWHG LQ DW %LNLQL DWROO Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 14 of 40
  • 15. WKDW WKUHZ UDGLRDFWLYH IDOORXW RYHU QHDUO VTXDUH PLOHV ,G DW 1XFOHDU &ODLPV 7ULEXQDO 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV KWWS ZZZ QXFOHDUFODLPVWULEXQDO FRP ODVW YLVLWHG -XO ³1XFOHDU &ODLPV 7ULEXQDO´ 5DGLRDFWLYH DVK IHOO RQ RWKHU 1RUWKHUQ DWROOV LQFOXGLQJ 5RQJHODS DQG 8WULN ZKHUH LW HQWHUHG WKH LVODQGHUV¶ OXQJV VWXFN WR WKH FRFRQXW RLO RQ WKHLU VNLQ DQG ZDV SODHG ZLWK DQG LQJHVWHG E FKLOGUHQ +ROO 0 %DUNHU %UDYR IRU WKH 0DUVKDOOHVH 5HJDLQLQJ &RQWURO LQ D 3RVW 1XFOHDU 3RVW &RORQLDO :RUOG $W WKH WLPH WKH 0DUVKDOO ,VODQGV ZHUH SDUW RI D 8QLWHG 1DWLRQV 7UXVW 7HUULWRU DGPLQLVWHUHG E WKH 8QLWHG 6WDWHV ZKLFK DV VROH WUXVWHH ³KDG SOHGJHG WR WKH 8QLWHG 1DWLRQV WR µSURWHFW WKH LQKDELWDQWV DJDLQVW WKH ORVV RI WKHLU ODQG DQG UHVRXUFHV ¶´ :HLVJDOO WHVWLPRQ VXSUD DW +RUULILF KHDOWK HIIHFWV LQFOXGLQJ WKURLG DQG RWKHU FDQFHUV DUH OLQNHG GLUHFWO WR WKH QXFOHDU WHVWLQJ SURJUDP 6HH 1XFOHDU &ODLPV 7ULEXQDO VXSUD 7KH PRVW KDUURZLQJ DQG SVFKRORJLFDOO GDPDJLQJ KHDOWK HIIHFWV ZHUH WKH ELUWK GHIHFWV FDXVHG E WKH WHVWLQJ SDUWLFXODUO LQ ZRPHQ RQ 5RQJHODS %DUNHU VXSUD DW 7KHVH LQFOXGHG VWLOOERUQ EDELHV DQG EDELHV ERUQ ZLWKRXW UHFRJQL]DEOH KXPDQ VKDSHV ± ZLWK VKRFNLQJ GHIRUPLWLHV OLNH DQ H[WUD KHDG RU D ODFN RI ERQHV LQ WKH ERG ± ZKLFK WKH SHRSOH FDOO ³MHOO ILVK EDELHV ´ 6HH =RKO Gp ,VKWDU $ 6XUYLYRU¶V :DUQLQJ RQ 1XFOHDU &RQWDPLQDWLRQ 3DF (FRORJLVW $QG DV RI ³>D@ERXW RI WKH WKURLG FDQFHUV DQG PRUH WKDQ RQH KDOI RI FDQFHUV WR Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 15 of 40
  • 16. WKH RWKHU RUJDQV DW DOO DWROOV DUH HW WR GHYHORS RU WR EH GLDJQRVHG +HQFH PRVW RI WKH UDGLDWLRQ H[FHVV LV SURMHFWHG WR RFFXU LQ WKH FRPLQJ HDUV ´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¶V ILVKLQJ DQG RFHDQ VNLOOV ³ZHUH UHQGHUHG XVHOHVV ´ 6HH :HLVJDOO WHVWLPRQ VXSUD DW 7KLV LQDELOLW WR VHOI VXEVLVW FRQWLQXHV WR WKH SUHVHQW ± UHORFDWHG 0DUVKDOOHVH OLYLQJ RQ WKH QRUWKHUQ DQG RWKHU LVODQGV DUH HQWLUHO UHOLDQW RQ RXWVLGH PRVWO SURFHVVHG IRRGV .HMX -RKQVRQ VXSUD DW 7KH 0DUVKDOOHVH ZHUH DOVR IRUFHG WR VHYHU WLHV WR WKH ODQG WKDW GHILQHG WKHLU UHODWLRQVKLSV WR HDFK RWKHU 6HH %DUNHU VXSUD DW 7KH 0DUVKDOOHVH KDYH DQ LQVHSDUDEOH VRFLDO FXOWXUDO DQG VSLULWXDO FRQQHFWLRQ WR WKHLU ODQG 7KH GHFLPDWLRQ RI WKDW ODQG DQG WKHLU IRUFHG UHORFDWLRQ WR RWKHU DWROOV WKXV LQIOLFWHG GHHS HPRWLRQDO Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 16 of 40
  • 17. DQG SVFKRORJLFDO ZRXQGV ± QRW MXVW RQ HDUOLHU JHQHUDWLRQV EXW DOVR RQ SUHVHQW DQG IXWXUH JHQHUDWLRQV ZKR DUH XQDEOH WR UHWXUQ WR DQFHVWUDO KRPHODQGV EHFDXVH UDGLDWLRQ VWLOO UHQGHUV WKHP XQLQKDELWDEOH 6HH :HLVJDOO WHVWLPRQ VXSUD DW %DUNHU VXSUD DW 7KHVH ZLGHVSUHDG DQG ORQJ ODVWLQJ KHDOWK HIIHFWV DUH QRW OLPLWHG WR WKH 0DUVKDOO ,VODQGV DQG DUH QRW FRQILQHG WR GLUHFW UDGLDWLRQ LQMXULHV 3KVLFLDQ 6HLML <DPDGD ZKR WUHDWV DQG VWXGLHV WKH KHDOWK FDUH FKDOOHQJHV RI &2)$ UHVLGHQWV LQ +DZDLµL DVVHVVHG WKDW ³*LYHQ WKH PHJDWRQQDJH RI QXFOHDU WHVWLQJ WKDW WKH 8 6 FRQGXFWHG LQ WKH 3DFLILF LW DSSHDUV SODXVLEOH WKDW H[FHVV FDQFHU ZRXOG KDYH RFFXUUHG LQ DUHDV RI 0LFURQHVLD RWKHU WKDQ WKH 0DUVKDOO ,VODQGV ´ 6HLML <DPDGD 0 ' &DQFHU 5HSURGXFWLYH $EQRUPDOLWLHV DQG 'LDEHWHV LQ 0LFURQHVLD 7KH (IIHFW RI 1XFOHDU 7HVWLQJ 3DF +HDOWK 'LDORJ $OVR ³>Z@KLOH GLDEHWHV LV QRW D UDGLRJHQLF GLVHDVH DQG RWKHU FDQFHUV DUH JHQHUDOO OHVV UDGLRJHQLF WKDQ OHXNHPLD RU WKURLG FDQFHU WKH VRFLDO DQG FXOWXUDO HIIHFWV RI QXFOHDU WHVWLQJ VSHFLILFDOO DQG WKH VWUDWHJLF XVHV WR ZKLFK 0LFURQHVLD KDV EHHQ SXW JHQHUDOO KDYH HDFK KDG D UROH LQ WKH VRFLDO SURGXFWLRQ RI GLVHDVH ´ ,G DW ,Q SDUW EHFDXVH RI WKHVH HIIHFWV DV RI DQ HVWLPDWHG 0LFURQHVLDQV KDYH OHJDOO WUDYHOHG WR +DZDLµL WR REWDLQ DPRQJ RWKHU WKLQJV QHHGHG KHDOWK FDUH 6HH 8 6 &HQVXV %XUHDX )LQDO 5HSRUW (VWLPDWHV RI &RPSDFW RI )UHH $VVRFLDWLRQ &2)$ 0LJUDQWV $SULO DW Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 17 of 40
  • 18. ,, 7KH 0XOWLIDFHWHG 'DPDJHV WR &2)$ 5HVLGHQWV $UH ([DFHUEDWHG % WKH 8QLWHG 6WDWHV¶ %UHDFK RI LWV 'XW WR 3URPRWH 0LFURQHVLDQ 6HOI 6XIILFLHQF DQG % LWV &RQWLQXLQJ )DLOXUH WR 'LVFKDUJH LWV $FNQRZOHGJHG 5HVSRQVLELOLW WR 5HSDLU WKH 'DPDJH $ 7KH &2)$ 5HVLGHQWV¶ 3RRU +HDOWK LV /LQNHG WR WKH 8QLWHG 6WDWHV¶ %UHDFK RI LWV 7UXVW DQG &RPSDFW 'XWLHV WR 3URPRWH 0LFURQHVLDQ :HOIDUH DQG $GYDQFHPHQW DQG WR WKH 0LFURQHVLDQV¶ 5HVXOWLQJ (FRQRPLF 'HSHQGHQF DQG $FTXLHVFHQFH WR D 'DPDJLQJ 8QLWHG 6WDWHV 0LOLWDU DQG 1XFOHDU 3UHVHQFH 7KDW 6HUYHV 8 6 ,QWHUHVWV ,Q XQGHU WKH QHZO IRUPHG 8QLWHG 1DWLRQV WKH 0LFURQHVLDQ LVODQGV UHJLRQ EHFDPH WKH 7UXVW 7HUULWRU RI WKH 3DFLILF ,VODQGV SDUW RI DQ ,QWHUQDWLRQDO 7UXVWHHVKLS 6VWHP HVWDEOLVKHG WR KHOS IRUPHU FRORQLHV PRYH WRZDUGV LQGHSHQGHQFH 7KH JRDO RI WKH WUXVWHHVKLS ZDV WR SURPRWH WKH SROLWLFDO HFRQRPLF VRFLDO DQG HGXFDWLRQDO ³DGYDQFHPHQW RI WKH LQKDELWDQWV ´ WKHLU ³VHOI VXIILFLHQF´ DQG ³KHDOWK ´ DQG WKHLU ³GHYHORSPHQW WRZDUG VHOI JRYHUQPHQW RU LQGHSHQGHQFH ´ 7UXVWHHVKLS $JUHHPHQW IRU WKH )RUPHU -DSDQHVH 0DQGDWHG ,VODQGV DUW -XO 6WDW ³7UXVWHHVKLS $JUHHPHQW´ 7KH 8QLWHG 6WDWHV EHFDPH WKH $GPLQLVWHULQJ $XWKRULW RYHU WKH 0LFURQHVLDQ 7UXVW UHJLRQ XQGHU WKLV PDQGDWH $ORQJ ZLWK WKHVH DVSLUDWLRQDO JRDOV WKH 7UXVW JDYH WKH 8 6 ³IXOO SRZHUV RI DGPLQLVWUDWLRQ OHJLVODWLRQ DQG MXULVGLFWLRQ RYHU WKH 7HUULWRU´ LQFOXGLQJ VZHHSLQJ PLOLWDU FRQWURO 7UXVWHHVKLS $JUHHPHQW DUW DUW 7KH 8 6 DXWKRULW ZDV XQLTXH DQG UHYHDOLQJ LQ WZR ZDV )LUVW WKH 0LFURQHVLDQ 7UXVW UHJLRQ FDPH XQGHU WKH 8QLWHG 1DWLRQV¶ RQO 6WUDWHJLF 7UXVWHHVKLS ³D GHVLJQDWLRQ ZKLFK FOHDUO XQGHUOLQHV WKH LPSRUWDQFH RI WKH LVODQGV DV D VWUDWHJLF PLOLWDU DUHD ´ Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 18 of 40
  • 19. 3DWV 7 0LQN 0LFURQHVLD 2XU %XQJOHG 7UXVW 7H[ ,QW¶O / ) 6HFRQG GHPRQVWUDWLQJ WKH 8QLWHG 6WDWHV¶ WLJKW FRQWURO RYHU WKH UHJLRQ WKH WUXVWHHVKLS ZDV HVWDEOLVKHG E WKH 8 1 6HFXULW &RXQFLO ³UDWKHU WKDQ WKH *HQHUDO $VVHPEO ZKHUH DOO RWKHU WUXVWV ZHUH DSSURYHG ´ ZKLFK PHDQW WKH 8 6 KDG ³D SHUPDQHQW YHWR RYHU DQ FKDQJH LQ WKH VWDWXV ´ ,G $V :RUOG :DU ,, HQGHG DQG WKH &ROG :DU EHJDQ WKH 8 6 1DY UHQHZHG LWV LQWHUHVW LQ WKH 0LFURQHVLDQ ,VODQGV 7KH LPSRUWDQFH RI DWRPLF ZHDSRQV ZDV REYLRXV ZRUOGZLGH DIWHU +LURVKLPD EXW WKH 8 6 PLOLWDU VWLOO KDG PXFK WR OHDUQ DERXW WKH HIIHFWV RI WKH ERPE RQ KXPDQ EHLQJV LQIUDVWUXFWXUH DQG WKH HQYLURQPHQW %HFDXVH WKH 0DUVKDOO ,VODQGV ZHUH LVRODWHG OLJKWO SRSXODWHG DQG DOUHDG XQGHU PLOLWDU FRQWURO 8 6 OHDGHUV YLHZHG WKHP DV DQ LGHDO SODFH IRU WKH 8 6 1DY WR FRQGXFW WHVWV ZLWKRXW PXFK LQWHUQDWLRQDO VFUXWLQ %DUNHU VXSUD DW 7KH IROORZLQJ GHFDGHV ZLWQHVVHG VLJQLILFDQW 8 6 PLOLWDU EXLOG XS LQ WKH 0LFURQHVLDQ UHJLRQ ± LQFOXGLQJ WZHOYH HDUV RI GHYDVWDWLQJ QXFOHDU WHVWLQJ LQ WKH 0DUVKDOO ,VODQGV ± EXW YHU OLWWOH PRYHPHQW WRZDUGV VHOI JRYHUQDQFH RU HFRQRPLF GHYHORSPHQW IRU WKH LQKDELWDQWV 'HVSLWH D PDQGDWH RI SURPRWLQJ ³LQGHSHQGHQFH ´ DQG ZLWK OLWWOH HIIRUW GHYRWHG WR GHYHORSLQJ WKH LQKDELWDQWV¶ VHOI JRYHUQDQFH WKH PLOLWDU HQWUHQFKPHQW LQ WKH LVODQGV FRQWLQXHG DORQJVLGH WKH LVODQGV¶ JURZLQJ GHSHQGHQFH RQ 8 6 IXQGLQJ 6HH 0DWWKHZ (LOHQEHUJ $PHULFDQ 3ROLF LQ 0LFURQHVLD - RI 3DF +LVW Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 19 of 40
  • 20. (FRQRPLF GHSHQGHQF ZDV QRW DQ DFFLGHQWDO ESURGXFW RI JRRG IDLWK 8 6 DGPLQLVWUDWLYH GHFLVLRQV DV WUXVWHH 7KDW GHSHQGHQF IORZHG IURP 8 6 UHFRJQLWLRQ WKDW ³>D@V ORQJ DV 0LFURQHVLD UHPDLQV HFRQRPLFDOO GHSHQGHQW RQ WKH 8QLWHG 6WDWHV WKH 8QLWHG 6WDWHV ODZV DQG SROLFLHV >ZRXOG@ EH LQIOXHQWLDO ´ (GLEHUWR 5RPiQ 7KHURQ 6LPPRQV 0HPEHUVKLS 'HQLHG 6XERUGLQDWLRQ DQG 6XEMXJDWLRQ 8QGHU 8QLWHG 6WDWHV ([SDQVLRQLVP 6DQ 'LHJR / 5HY FLWLQJ -RKQ % 0HWHOVNL 0LFURQHVLD DQG )UHH $VVRFLDWLRQ &DQ )HGHUDOLVP 6DYH 7KHP" &DO : ,QW¶O / - $ UHSRUW FRPPLVVLRQHG E WKH .HQQHG $GPLQLVWUDWLRQ ³RXWOLQH>G@ D VWUDWHJ IRU IXUWKHULQJ $PHULFDQ LQWHUHVWV LQ 0LFURQHVLD LQ SDUW E LQWHQWLRQDOO IRVWHULQJ HFRQRPLF GHSHQGHQFH RQ WKH 8QLWHG 6WDWHV ´ ,G DW FLWLQJ 8 6 *RYHUQPHQW 6XUYH 0LVVLRQ WR WKH 7UXVW 7HUULWRU RI WKH 3DFLILF ,VODQGV 5HSRUW WR WKH 3UHVLGHQW $ 6RORPRQ 2FW ³7KH WKUXVW RI 7KH 6RORPRQ 5HSRUW >ZDV@ WKDW E LQFUHDVLQJ 8QLWHG 6WDWHV ILQDQFLDO DLG ORDOW RI WKH 7UXVW 7HUULWRU ZLOO EH DVVXUHG YLD WKH UHVXOWDQW HFRQRPLF GHSHQGHQF ´ ,G DW ,QGHHG WKH 5HSRUW ³FOHDUO ODLG RXW D VWUDWHJ> @ 7KH 8 6 ZRXOG SXPS ODUJH DPRXQWV RI PRQH LQWR 0LFURQHVLD EXLOG D FRPPXQLW VHUYLFH LQIUDVWUXFWXUH HVWDEOLVK D KRVW RI GHYHORSPHQW SURJUDPV DQG D GHSHQGHQF XSRQ FDVK KROG D SOHEHVFLWH DW WKH SRLQW DW ZKLFK WKH 0LFURQHVLDQV¶ KRSHV KDG EHHQ UDLVHG DQG WKHQ SXOO EDFN VXSSRUW DV WKH YDULRXV GHYHORSPHQW SURJUDPV IDLOHG Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 20 of 40
  • 21. WR VXFFHHG ´ &DWKHULQH /XW] 7KH &RPSDFW RI )UHH $VVRFLDWLRQ 0LFURQHVLDQ 1RQ ,QGHSHQGHQFH DQG 8 6 3ROLF %XOO RI &RQFHUQHG $VLDQ 6FK 7KHVH HYHQWV VSXUUHG 8 6 5HSUHVHQWDWLYH 3DWV 7 0LQN WR SXEOLVK D VFDWKLQJ FULWLTXH RI WKH 8QLWHG 6WDWHV¶ ³FRORQLDO´ OLNH SUHVHQFH LQ 0LFURQHVLD LQ 0DQ RI WKH SUREOHPV LGHQWLILHG E 5HSUHVHQWDWLYH 0LQN UHPDLQ WRGD IRUW HDUV ODWHU DQG WZHQW ILYH HDUV DIWHU WKH LVODQGV¶ ³LQGHSHQGHQFH ´ 6KH GHWDLOHG RYHU WZR GHFDGHV RI ³QHJOHFW RI WUXVWHH REOLJDWLRQV´ DQG FKDVWLVHG WKH 8QLWHG 6WDWHV IRU IDLOLQJ WR PDNH JRRG RQ LWV 7UXVW SURPLVHV WR ³SURPRWH WKH HFRQRPLF DGYDQFHPHQW DQG VHOI VXIILFLHQF RI WKH LQKDELWDQWV´ DQG ³SURWHFW WKH LQKDELWDQWV DJDLQVW WKH ORVV RI WKHLU ODQGV DQG UHVRXUFHV ´ 0LQN VXSUD DW ,QVWHDG ³DIWHU ZLQQLQJ WKH ULJKW WR FRQWURO 0LFURQHVLD >WKH 8 6 @ SURFHHGHG WR DOORZ WKH LVODQGV WR VWDJQDWH DQG GHFD WKURXJK LQGLIIHUHQFH DQG ODFN RI DVVLVWDQFH ´ ,G DW 7KXV ³WKH SHRSOH DUH VWLOO ODUJHO LPSRYHULVKHG DQG ODFNLQJ LQ DOO RI WKH EDVLF DPHQLWLHV ZKLFK ZH FRQVLGHU HVVHQWLDO ± DGHTXDWH HGXFDWLRQ KRXVLQJ JRRG KHDOWK VWDQGDUGV PRGHUQ VDQLWDWLRQ IDFLOLWLHV ´ ,G 0LQN DOVR GHVFULEHG VSHFLILF ZDV LQ ZKLFK WKH 8 6 H[HUWHG LWV ZLOO LQ FUHDWLQJ WKLV VLWXDWLRQ 7KLV ³GHOLEHUDWH´ UROH LQFOXGHG WKH 8 6 PDQLSXODWLRQ RI WUDGH UHJXODWLRQV PDNLQJ ³WKH LVODQGHUV GHSHQGHQW RQ WKH JRYHUQPHQW´ D 8 6 LPSRVHG WDULII WKDW ³IUXVWUDWHG DQ KRSHV RI FUHDWLQJ D VL]DEOH RIIVKRUH ILVKHU´ DQG OLPLWLQJ DQ SURPLVH RI D WRXULVP LQGXVWU EHFDXVH RI 8 6 PLOLWDU Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 21 of 40
  • 22. UHVWULFWLRQV ,G DW )RUPHU 8 6 $PEDVVDGRU WR WKH 8QLWHG 1DWLRQV 'RQDOG 0F+HQU DOVR DFNQRZOHGJHG WKDW ³:H LQ D VHQVH DOPRVW PDGH WKHP >WKH 0LFURQHVLDQV@ D ZHOIDUH VWDWH :H FUHDWHG D GHSHQGHQF ´ &RQJ 5HF ( ( QG &RQJ GDLO HG 0DU VWDWHPHQW RI +RQ (QL ) + )DOHPDYDHJD FLWLQJ 0F+HQU (YHQ LQ WKH PRYH WRZDUGV VHOI GHWHUPLQDWLRQ LQ WKH V DQG V 0LQN¶V WKHPHV RI ³FODVVLF PLOLWDU FRORQLDOLVP´ DQG ³FRQWULYHG GHSHQGHQW UHODWLRQVKLS´ UHVRQDWHG 'XULQJ LQLWLDO QHJRWLDWLRQV ZLWK WKH 8QLWHG 6WDWHV ³$PHULFDQ WKLQNLQJ GLVWLQFWO SODFHG PLOLWDU FRQVLGHUDWLRQV DERYH KXPDQLWDULDQ FRQVLGHUDWLRQV GHVSLWH LQWHUQDWLRQDO WUXVWHHVKLS REOLJDWLRQV ´ 'RQDOG ) 0F+HQU 0LFURQHVLD 7UXVW %HWUDHG ± $OWUXLVP YV 6HOI ,QWHUHVW LQ $PHULFDQ )RUHLJQ 3ROLF )RU 8 6 6HFUHWDU RI 'HIHQVH -DPHV 6FKOHVVLQJHU DQG WKH 8 6 PLOLWDU ³WKH LPSHWXV IRU WKH QHJRWLDWLRQV ZDV QRW DQ HIIRUW E WKH 0LFURQHVLDQV WR H[HUFLVH WKHLU ULJKW WR VHOI GHWHUPLQDWLRQ EXW µLQWHUQDWLRQDO DQG SROLWLFDO¶ FRQVLGHUDWLRQV ´ ,G DW ³$PHULFDQ RIILFLDOV UDWLRQDOL]HG WKDW WKH VPDOO SRZHUOHVV DQG SRYHUW VWULFNHQ 0LFURQHVLDQ SRSXODWLRQ KDG WR VDFULILFH LWV ,Q D 8QLWHG 1DWLRQV 0LVVLRQ WR 0LFURQHVLD ZDV DOVR ³VKDUSO FULWLFDO RI $PHULFDQ DGPLQLVWUDWLRQ LQ DOPRVW HYHU DUHD SRRU WUDQVSRUWDWLRQ IDLOXUH WR VHWWOH ZDU GDPDJH FODLPV IDLOXUH WR DGHTXDWHO FRPSHQVDWH IRU ODQG WDNHQ IRU PLOLWDU SXUSRVHV SRRU OLYLQJ FRQGLWLRQV> @ LQDGHTXDWH HFRQRPLF GHYHORSPHQW LQDGHTXDWH HGXFDWLRQ SURJUDPV DQG DOPRVW QRQH[LVWHQW PHGLFDO FDUH ´ 0F+HQU VXSUD DW Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 22 of 40
  • 23. ULJKW WR GHFLGH LWV RZQ IXWXUH WR WKH JUHDWHU JRRG DV SHUFHLYHG E WKH 8QLWHG 6WDWHV ´ ,G % WKH PLG V WKH )60 50, DQG 3DODX HQWHUHG LQWR &RPSDFWV RI )UHH $VVRFLDWLRQ ZLWK WKH 8QLWHG 6WDWHV &RPSDFW RI )UHH $VVRFLDWLRQ 8 6 0LFURQHVLD 0DUVKDOO ,VODQGV 3XE / 1R 6WDW &RPSDFW RI )UHH $VVRFLDWLRQ 8 6 3DODX 3XE / 1R 6WDW $PRQJ RWKHU WKLQJV WKH &RPSDFWV UHFRJQL]HG WKH GDPDJHV VXIIHUHG E WKH 0LFURQHVLDQ SHRSOH LQFOXGLQJ KHDOWK FDUH QHHGV DQG FRPPLWWHG WKH 8 6 WR UHSDLULQJ WKDW GDPDJH ,W JDYH FRPSOHWH PLOLWDU FRQWURO RYHU WKH UHJLRQ WR WKH 8 6 LQ H[FKDQJH IRU WKH LVODQGV¶ SHRSOHV¶ QHDUO XQUHVWULFWHG WUDYHO WR WKH 8 6 VWDWHV DQG WHUULWRULHV WR ³HVWDEOLVK UHVLGHQFH ´ 3 / †† D D E 7KH &RPSDFWV¶ VWDWHG JRDOV ZHUH DQG FRQWLQXH WR EH WR ³ VHFXUH VHOI JRYHUQPHQW IRU HDFK FRXQWU DVVXUH FHUWDLQ QDWLRQDO VHFXULW ULJKWV IRU WKH )60 WKH 50, DQG WKH 8QLWHG 6WDWHV DQG DVVLVW WKH )60 DQG WKH 50, LQ WKHLU HIIRUWV WR DGYDQFH HFRQRPLF VHOI VXIILFLHQF ´ 8 6 *RY¶W $FFRXQWDELOLW 2IILFH 7 16,$' 5&(' 8 6 )XQGV WR 7ZR 0LFURQHVLDQ 1DWLRQV +DG /LWWOH ,PSDFW RQ (FRQRPLF 'HYHORSPHQW DQG $FFRXQWDELOLW 2YHU )XQGV :DV /LPLWHG 7KHVH JRDOV HFKRHG WKH HDUOLHU 7UXVW DJUHHPHQW %XW OLWWOH FKDQJHG LQ 8 6 SUDFWLFHV LQ WKH UHJLRQ 7KH RUFKHVWUDWHG GHSHQGHQF RQ IHGHUDO PRQLHV FRQWLQXHG WKURXJK WKH V ³EXW DW JUHDWO UHGXFHG IHGHUDO IXQGLQJ OHYHOV DV D UHVXOW RI WKH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 23 of 40
  • 24. UH QHJRWLDWHG UHODWLRQVKLS ZLWK WKH 8 6 XQGHU WKH &RPSDFW RI )UHH $VVRFLDWLRQ> @´ $QQ 0 3REXWVN HW DO 0LFURQHVLDQ 0LJUDQW +HDOWK ,VVXHV LQ +DZDLL 3DUW $Q $VVHVVPHQW RI +HDOWK /DQJXDJH DQG .H 6RFLDO 'HWHUPLQDQWV RI +HDOWK &DO - RI +HDOWK 3URPRWLRQ $V D UHVXOW ³0LFURQHVLDQV KDYH PRYHG DZD IURP WKHLU KRPH LVODQGV WR SODFHV OLNH WKH 8 6 7HUULWRU RI *XDP WKH &10, DQG +DZDLL ´ ,G 7KH &RPSDFW ZLWK WKH )60 DQG 50, FRPPLWWHG WKH 8QLWHG 6WDWHV WR FRPSHQVDWLRQ IRU GHFDGHV RI GDPDJH IURP QXFOHDU WHVWLQJ LQ WKH 0DUVKDOO ,VODQGV 7KH 8 6 H[SOLFLWO ³DFFHSW>HG@ WKH UHVSRQVLELOLW IRU FRPSHQVDWLRQ RZLQJ WR FLWL]HQV RI WKH 0DUVKDOO ,VODQGV RU WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD RU 3DODX IRU ORVV RU GDPDJH WR SURSHUW DQG SHUVRQ RI WKH FLWL]HQV RI WKH 0DUVKDOO ,VODQGV RU WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD UHVXOWLQJ IURP WKH QXFOHDU WHVWLQJ SURJUDP ZKLFK WKH *RYHUQPHQW RI WKH 8QLWHG 6WDWHV FRQGXFWHG LQ WKH 1RUWKHUQ 0DUVKDOO ,VODQGV> @´ 3 / † D 7KH 8QLWHG 6WDWHV DJUHHG WR WKLV FRPSHQVDWLRQ ³>L@Q UHFRJQLWLRQ RI WKH H[SUHVVHG GHVLUH RI WKH *RYHUQPHQW RI WKH 0DUVKDOO ,VODQGV WR FUHDWH DQG PDLQWDLQ LQ SHUSHWXLW D PHDQV WR DGGUHVV SDVW SUHVHQW DQG IXWXUH FRQVHTXHQFHV RI WKH 1XFOHDU 7HVWLQJ 3URJUDP >DQG L@Q UHFRJQLWLRQ RI FRQWULEXWLRQV DQG VDFULILFHV PDGH E WKH SHRSOH RI WKH 0DUVKDOO ,VODQGV LQ UHJDUG WR WKH 1XFOHDU 7HVWLQJ 3URJUDP> @´ $JUHHPHQW %HWZHHQ WKH *RYHUQPHQW RI WKH 8QLWHG 6WDWHV DQG WKH *RYHUQPHQW RI WKH 0DUVKDOO ,VODQGV IRU WKH ,PSOHPHQWDWLRQ Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 24 of 40
  • 25. RI 6HFWLRQ RI WKH &RPSDFW RI )UHH $VVRFLDWLRQ 3UHDPEOH ³6HFWLRQ $JUHHPHQW´ 7KH 8 6 DOVR DJUHHG WR SURYLGH ³VSHFLDO PHGLFDO FDUH DQG ORJLVWLFDO VXSSRUW´ IRU WKH SHRSOH RI 5RQJHODS DQG 8WULN ZKR ZHUH H[SRVHG WR UDGLDWLRQ IURP WKH WKHUPRQXFOHDU ³%UDYR´ WHVW 8 6 & † K $W QHDUO HYHU WXUQ WKH 8QLWHG 6WDWHV IDLOHG WR GLVFKDUJH WKHVH UHVSRQVLELOLWLHV )RU WKLV UHDVRQ WKH 0DUVKDOOHVH ILOHG VHYHUDO ODZVXLWV DJDLQVW WKH 8 6 VHHNLQJ FRPSHQVDWLRQ IRU DPRQJ RWKHU WKLQJV SURSHUW ORVV DQG SHUVRQDO LQMXULHV 7KH 8 6 IRUHVWDOOHG WKH FRXUW VXLWV LQ SDUW WKURXJK WKH FUHDWLRQ RI D 1XFOHDU &ODLPV 7ULEXQDO VHH 6HFWLRQ $JUHHPHQW $UW ,, † F $UW ,9 † D ZKLFK VRPH 0DUVKDOOHVH XQVXFFHVVIXOO FKDOOHQJHG 6HH 3HRSOH RI (QHZHWDN Y 8QLWHG 6WDWHV ) G )HG &LU -XGD Y 8 6 &O &W $IWHU SXUVXLQJ WKHLU FODLPV EHIRUH WKH 7ULEXQDO IRU QLQHWHHQ HDUV WKH 0DUVKDOOHVH UHFHLYHG 7ULEXQDO DZDUGV RI PRUH WKDQ ELOOLRQ LQ FRPSHQVDWRU GDPDJHV %XW WKH 8 6 SDLG RQO PLOOLRQ ³ZKLFK UHSUHVHQWV OHVV WKDQ RI RI LWV DZDUGV ´ :HLVJDOO WHVWLPRQ VXSUD DW :KHQ WKH 0DUVKDOOHVH UHWXUQHG WR IHGHUDO FRXUW WR HQIRUFH WKH DZDUGV WKHLU FODLPV ZHUH GLVPLVVHG 3HRSOH RI %LNLQL Y 8 6 )HG &O DII¶G ) G )HG &LU 0HPEHUV RI WKH QXFOHDU DIIHFWHG DWROOV DOVR ILOHG D ³FKDQJHG FLUFXPVWDQFHV´ SHWLWLRQ XQGHU 6HFWLRQ RI WKH &2)$ EXW WKH 8 6 RSSRVHG LW 6HH &RQJ Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 25 of 40
  • 26. 'HVSLWH XUJLQJ E WKH 0DUVKDOO ,VODQGV JRYHUQPHQW WKH 8QLWHG 6WDWHV FRQWLQXHV WR UHVLVW IXUWKHU FRPSHQVDWLRQ FODLPV IRU WKH LQMXVWLFHV 6HH &RQJ 5HF 6 WK &RQJ GDLO HG -DQ VWDWHPHQW RI 6HQ -HII %LQJDPDQ QRWLQJ WKH 8 6 ¶V ³RSSRVLWLRQ WR IXUWKHU ILQDQFLDO FRPSHQVDWLRQ EHFDXVH WKH VHWWOHPHQW ZDV µIXOO DQG ILQDO¶´ $OWKRXJK WKH 8QLWHG 6WDWHV FODLPHG WKH QHFHVVLW RI QXFOHDU WHVWLQJ LQ WKH 0DUVKDOO ,VODQGV IRU ³WKH JRRG RI DOO PDQNLQG ´ WKH 0DUVKDOOHVH SHRSOH FRQWLQXH WR VXIIHU DQG ³GLH RI UDGLRDFWLYLW UHODWHG FDQFHUV DW KRUULILF UDWHV ´ -XOLDQ $JXRQ 2WKHU $UPV 7KH 3RZHU RI D 'XDO 5LJKWV /HJDO 6WUDWHJ IRU WKH &KDPRUX 3HRSOH RI *XDP 8VLQJ WKH 'HFODUDWLRQ RQ WKH 5LJKWV RI ,QGLJHQRXV 3HRSOHV LQ 8 6 &RXUWV 8 +DZ / 5HY $QG WKH 8QLWHG 6WDWHV VWLOO RSHUDWHV WKH 8 6 $UP 5RQDOG 5HDJDQ %DOOLVWLF 0LVVLOH 'HIHQVH 7HVW 6LWH RQ .ZDMDOHLQ $WROO $V WKH 8 6 *RYHUQPHQW $FFRXQWDELOLW 2IILFH *$2 UHFHQWO UHFRJQL]HG WKH UHJLRQ FRQWLQXHV WR SOD D FUXFLDO UROH LQ VXSSRUWLQJ WKH 8QLWHG 6WDWHV¶ VWUDWHJLF PLOLWDU LQWHUHVWV 6HH 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 .ZDMDOHLQ $WROO ,V WKH .H 8 6 'HIHQVH ,QWHUHVW LQ 7ZR 0LFURQHVLDQ 1DWLRQV 5HF 6 WK &RQJ GDLO HG -DQ VWDWHPHQW RI 6HQ -HII %LQJDPDQ 7KH 8 6 PLOLWDU UHFHQWO VLJQHG DQ DJUHHPHQW WR RSHUDWH WKH %DOOLVWLF 0LVVLOH 'HIHQVH 7HVW 6LWH RQ .ZDMDOHLQ $WROO XQWLO 8 6 0LVVLOH 7HVW 'HDO 2IIHUV +RSH WR 0DUVKDOOV 6OXP $*(1&( )5$1&( 35(66( 0D Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 26 of 40
  • 27. 7KH 8 6 ¶V PLOLWDU GULYHQ DFWLRQV ± IRU WKH EHQHILW RI WKH 8 6 ± WKXV UHVXOWHG LQ VHYHUH SDVW DQG FRQWLQXLQJ KDUPV WR WKH KHDOWK RI 0DUVKDOOHVH DQG DOO 0LFURQHVLDQV % 7KURXJK WKH &2)$ WKH 8QLWHG 6WDWHV KDV 3DUWLDOO $WWHPSWHG WR 5HSDLU WKH 'DPDJH %XW ,W +DV )DLOHG WR 'LVFKDUJH 7KLV 5HVSRQVLELOLW DQG ,Q 6RPH :DV ,WV 3DUWLDO $PHOLRUDWLYH (IIRUWV +DYH :RUVHQHG WKH 6LWXDWLRQ IRU 0LFURQHVLDQV LQ 7KHLU +RPHODQGV &DXVLQJ 7KHLU 0LJUDWLRQ WR +DZDLµL LQ 6HDUFK RI +HDOWK &DUH 7ZHQW ILYH HDUV DIWHU WKH &RPSDFW¶V LQLWLDWLRQ WKH 8QLWHG 6WDWHV VWLOO KDV IDLOHG WR GLVFKDUJH LWV UHVSRQVLELOLW WR WKH 0LFURQHVLDQ SHRSOH ± WKLV LV JHQHUDOO DFNQRZOHGJHG E WKH *$2 ± DQG WKH GLUH VLWXDWLRQ LQ WKH 0LFURQHVLDQV¶ KRPHODQGV KDV FRPSHOOHG HYHU LQFUHDVLQJ PLJUDWLRQ WR +DZDLµL ,Q WKH *$2 UHSRUWHG WKDW DIWHU ILIWHHQ HDUV WKH &RPSDFW KDG IDLOHG WR DFKLHYH LWV PDMRU JRDO RI DVVLVWLQJ WKH )60 DQG 50, WR EHFRPH HFRQRPLFDOO VHOI VXIILFLHQW 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 7 $Q $VVHVVPHQW RI WKH $PHQGHG &RPSDFWV DQG 5HODWHG $JUHHPHQWV $QRWKHU *$2 UHSRUW VLQJOHG RXW KHDOWK FDUH LQ WKH )60 DQG 50, DV ³LQDGHTXDWH WR PHHW WKH QHHGV RI WKH SRSXODWLRQ SURYLGLQJ LQFHQWLYH WR WUDYHO RU PRYH WR WKH 8QLWHG 6WDWHV LQ RUGHU WR UHFHLYH DSSURSULDWH KHDOWK FDUH ´ 8 6 *RY¶W $FFRXQWDELOLW 2IILFH *$2 0LJUDWLRQ )URP 0LFURQHVLDQ 1DWLRQV +DV +DG 6LJQLILFDQW ,PSDFW RQ *XDP +DZDLL DQG WKH &RPPRQZHDOWK RI WKH 1RUWKHUQ 0DULDQD ,VODQGV KWWS ZZZ WKHIUHHOLEUDU FRP 86 PLVVLOH WHVW GHDO R IIHUV KRSH WR 0DUVKDOOV VOXP D Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 27 of 40
  •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¶W $FFRXQWDELOLW 2IILFH *$2 'HYHORSPHQW 3URVSHFWV 5HPDLQ /LPLWHG IRU 0LFURQHVLD DQG 0DUVKDOO ,VODQGV /DUJHO EHFDXVH RI WKH LQVXIILFLHQW KHDOWK FDUH VVWHPV LQDGHTXDWH HPSORPHQW DQG HGXFDWLRQDO RSSRUWXQLWLHV D OLPLWHG HFRQRPLF EDVH DQG GLVSODFHPHQW EHFDXVH RI 8 6 QXFOHDU WHVWLQJ &2)$ FLWL]HQV KDYH PLJUDWHG WR RWKHU SODFHV LQFOXGLQJ +DZDLµL IRU QHHGHG PHGLFDO FDUH DQG RWKHU VHUYLFHV WKDW GR QRW H[LVW LQ WKHLU KRPHODQGV $SSUR[LPDWHO WR &2)$ PLJUDQWV QRZ OLYH LQ +DZDLµL 6KHOGRQ 5LNORQ 0 ' HW DO 7KH ³&RPSDFW ,PSDFW´ LQ +DZDLµL )RFXV RQ +HDOWK &DUH +DZDLµL 0HG - -XQH ,Q D VXUYH RI 0LFURQHVLDQV LQ +DZDL‫ދ‬L WKH PRVW IUHTXHQWO FLWHG UHDVRQ IRU PLJUDWLQJ WR +DZDL‫ދ‬L ZDV KHDOWK FDUH 3REXWVN HW DO VXSUD DW ,QGHHG &2)$ PLJUDQWV WR +DZDLµL UHIOHFW WKH SRRU KHDOWK FRQGLWLRQV RI WKHLU KRPH FRXQWULHV $ORQJVLGH LQIHFWLRXV GLVHDVHV OLNH WXEHUFXORVLV DQG +DQVHQ¶V GLVHDVH &2)$ Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 28 of 40
  • 29. PLJUDQWV DOVR DSSHDU WR KDYH KLJK UDWHV RI GLDEHWHV FDQFHUV LQFOXGLQJ UDGLDWLRQ LQGXFHG FDQFHUV REHVLW DQG FDUGLRYDVFXODU GLVHDVH ,G DW <HW XQGHU WKH 3HUVRQDO 5HVSRQVLELOLW DQG :RUN 2SSRUWXQLW 5HFRQFLOLDWLRQ $FW RI DOO &2)$ PLJUDQWV EHFDPH LQHOLJLEOH IRU 0HGLFDLG DQG RWKHU IHGHUDO ZHOIDUH SURJUDPV ZKHQ WKH ZHUH UH FDWHJRUL]HG DV ³QRQ TXDOLILHG DOLHQV ´ 8 6 & † E LG † $QG XQOLNH RWKHU OHJDO LPPLJUDQWV WKH DUH SURKLELWHG IURP EHFRPLQJ HOLJLEOH IRU EHQHILWV HYHQ DIWHU WKH ILYH HDU ZDLW SHULRG DSSOLFDEOH WR OHJDO SHUPDQHQW UHVLGHQWV ,,, $V D &RQVWLWXHQW 0HPEHU RI WKH 8QLWHG 6WDWHV DQG $V 5HFLSLHQW RI 6XEVWDQWLDO )HGHUDO 'ROODUV WR &RYHU WKH ,PSDFWV RI &2)$ 5HVLGHQWV ,QFOXGLQJ +HDOWK 1HHGV WKH 6WDWH RI +DZDL‫ދ‬L %HDUV -RLQW 5HVSRQVLELOLW IRU 0LFURQHVLDQV LQ +DZDL‫ދ‬L IRU 'HVSHUDWHO 1HHGHG 2IWHQ /LIH 2U 'HDWK 0HGLFDO &DUH 7KH 6WDWH EHDUV DQ LPSRUWDQW GHJUHH RI MRLQW UHVSRQVLELOLW WR &2)$ UHVLGHQWV LQ +DZDL‫ދ‬L IRU GHVSHUDWHO QHHGHG RIWHQ OLIH RU GHDWK PHGLFDO FDUH )LUVW WKH 6WDWH DVVXPHV SDUW RI WKH IHGHUDO JRYHUQPHQW¶V REOLJDWLRQ WKURXJK LWV DFFHSWDQFH RI SDUWLDO UHLPEXUVHPHQW IRU &2)$ UHVLGHQWV¶ KHDOWK FDUH +DZDLµL UHFHLYHG IHGHUDO GROODUV VLQFH DV UHLPEXUVHPHQW IRU FRVWV RI WKH LPSDFWV RI SHRSOH IURP &RPSDFW FRXQWULHV LQFOXGLQJ KHDOWK QHHGV 6HH 3OV ¶ 0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM 7KH &RPSDFWV SURYLGH IRU D SHUPDQHQW DSSURSULDWLRQ RI SHU HDU WKDW LV DSSRUWLRQHG DPRQJ +DZDLµL *XDP &10, DQG $PHULFDQ 6DPRD WR ³DLG LQ GHIUDLQJ FRVWV LQFXUUHG DV D UHVXOW RI Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 29 of 40
  • 30. LQFUHDVHG GHPDQGV SODFHG RQ KHDOWK HGXFDWLRQDO VRFLDO RU SXEOLF VDIHW VHUYLFHV RU LQIUDVWUXFWXUH UHODWHG WR VXFK VHUYLFHV GXH WR WKH UHVLGHQFH RI TXDOLILHG QRQLPPLJUDQWV IURP WKH 5HSXEOLF RI WKH 0DUVKDOO ,VODQGV WKH )HGHUDWHG 6WDWHV RI 0LFURQHVLD RU WKH 5HSXEOLF RI 3DODX ´ &RPSDFW RI )UHH $VVRFLDWLRQ ZLWK 0LFURQHVLD DQG WKH 0DUVKDOO ,VODQGV 3XE / 1R † H 6WDW FRGLILHG DV DPHQGHG 8 6 & † 7KH 6WDWH WKXV FROOHFWV D HDU IURP WKH IHGHUDO JRYHUQPHQW WR FRYHU LPSDFWV LQFOXGLQJ KHDOWK VHH 3OV ¶ 0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM DQG +DZDLµL PD VHHN DGGLWLRQDO IXQGV IRU UHLPEXUVHPHQW DQG VHUYLFHV SURYLGHG WR &2)$ UHVLGHQWV 3 / † H 6WDW $OWKRXJK WKRVH IXQGV GR QRW FRPSOHWHO FRYHU LPSDFW FRVWV &2)$ UHVLGHQWV GHVHUYH HTXDO KHDOWK FDUH WUHDWPHQW EHFDXVH PDQ 0LFURQHVLDQV DOVR SD +DZDLµL 6WDWH WD[HV DQG SURGXFWLYHO FRQWULEXWH WR WKH 6WDWH¶V HFRQRP 6HFRQG WKH 6WDWH WKURXJK LWV OHJLVODWLYHO FUHDWHG $WWRUQH *HQHUDO 7DVN )RUFH DFNQRZOHGJHV WKDW UDWKHU WKDQ GUDPDWLFDOO FXWWLQJ &2)$ UHVLGHQWV¶ KHDOWK FDUH LW VKRXOG LQFUHDVH HIIRUWV WR KHOS &2)$ PLJUDQWV WR DFFHVV DQG UHFHLYH EHWWHU KHDOWK VHUYLFHV LQ +DZDL‫ދ‬L 6HH 6WDWH RI +DZDL‫ދ‬L 'HSDUWPHQW RI WKH $WWRUQH *HQHUDO )LQDO 5HSRUW RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ 7DVN )RUFH ,QVWHDG LQ UHVSRQVH WR EXGJHWDU OLPLWDWLRQV WKH 6WDWH GLVHQUROOHG QRQ SUHJQDQW &2)$ UHVLGHQWV ZKR ZHUH HDUV RU ROGHU IURP WKHLU 6WDWH KHDOWK Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 30 of 40
  • 31. EHQHILWV SURJUDPV DQG SXW WKHP LQWR %++ D OLPLWHG DQG GUDVWLFDOO LQIHULRU SODQ %++ SURYLGHV PLQLPDO KHDOWK FDUH FRYHUDJH ³VXFK DV OLPLWHG LQSDWLHQW DQG RXWSDWLHQW SKVLFLDQ YLVLWV DQG IRXU SUHVFULSWLRQ GUXJV SHU PRQWK ´ 3OV ¶ 0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM $V D UHVXOW ³>S@DWLHQWV ZLWK FKURQLF RU VHULRXV LOOQHVVHV ZLWK GLVDELOLWLHV DQG WKRVH UHTXLULQJ QXPHURXV SUHVFULSWLRQ PHGLFDWLRQV DUH GHSULYHG RI FULWLFDO SRWHQWLDOO OLIH VXVWDLQLQJ FDUH ´ ,G 7KH OLPLWHG %++ SURJUDP KDV QR VSHFLDO SURYLVLRQV IRU FDQFHU WUHDWPHQWV DQG WKRVH WUHDWPHQWV DUH QRW FRYHUHG DV DQ HPHUJHQF VHUYLFH ,G DW 0RUHRYHU ³>G@LDOVLV SDWLHQWV WSLFDOO WDNH DSSUR[LPDWHO WR SUHVFULSWLRQ PHGLFDWLRQV SHU PRQWK ´ IDU PRUH WKDQ %++¶V IRXU SUHVFULSWLRQ SHU PRQWK OLPLW 'HFODUDWLRQ RI 'U :LOIUHG $OLN ³'U $OLN 'HFO ´ ˆ ,Q DGGLWLRQ PRVW &2)$ UHVLGHQWV LQ QHHG RI WUDQVSODQWV ZLOO EH XQDEOH WR DFFHVV WKH 6WDWH RI +DZDLL 2UJDQ DQG 7LVVXH 7UDQVSODQW SURJUDP 3OV ¶ 0HP LQ 6XSS RI 0RW IRU 3UHOLP ,QM %HFDXVH %++ FDSV VWDWHZLGH HQUROOPHQW DW SHRSOH PDQ ZKR QHHG HYHQ LWV PLQLPDO FRYHUDJH ZLOO EH OHIW ZLWKRXW DQ KHDOWK FDUH SODQ ,G DW $V D UHVXOW PDQ &2)$ UHVLGHQWV ZLWK VHULRXV LOOQHVVHV ZLOO EH XQDEOH WR UHFHLYH SUHYHQWDWLYH FDUH OLIH VDYLQJ WUHDWPHQW DQG DQ DGHTXDWH VXSSO RI SUHVFULSWLRQ PHGLFDWLRQV DQG PDQ RWKHUV ZLOO QRW KDYH DQ KHDOWK FDUH DSDUW IURP HPHUJHQF URRP VHUYLFHV +HDOWK FDUH SUDFWLWLRQHUV UHFRJQL]H WKH VWDUN RXWFRPH ³3DWLHQWV QHHGLQJ FDUH IRU FRQGLWLRQV VXFK DV UHQDO IDLOXUH DQG FDQFHU ZLOO VXIIHU Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 31 of 40
  • 32. EHFDXVH FKHPRWKHUDS DQG KHPRGLDOVLV DUH OLIH VXVWDLQLQJ WUHDWPHQWV IRU PDQ SDWLHQWV 7DNLQJ DZD WKHVH FUXFLDO WUHDWPHQWV ZLOO UHVXOW LQ GHDWK ´ $DURQ 6DXQGHUV HW DO +HDOWK DV D +XPDQ 5LJKW :KR LV (OLJLEOH" +DZDLµL 0HG - -XQH 'LVDEOHG SHRSOH ³HQUROOHG LQ %++ RU ZLWKRXW D KHDOWK SODQ ZLOO EH IRUFHG LQWR D VWDWH RI GHWHULRUDWLQJ KHDOWK ZKLFK ZLOO OHDG WR H[DFHUEDWLRQ RI WKHLU FKURQLF DGYDQFHG LOOQHVVHV SURJUHVVLQJ WR WHUPLQDO VWDJHV 7KH RQO DOWHUQDWLYHV ZRXOG EH WR EHFRPH EHGULGGHQ DQG QHJOHFWHG RU WR VHHN KRVSLWDO PHGLFDO FDUH ´ 'HFODUDWLRQ RI 'U 5LWDEHOOH )HUQDQGHV ³'U )HUQDQGHV 'HFO ´ ˆ 6HH DOVR 'U $OLN 'HFO ˆ ³8QGHU %++ WKHUH LV D YHU KLJK ULVN WKDW SDWLHQWV ZKR DUH XQDEOH WR UHFHLYH WKH FDUH WKH QHHG ZLOO HQG XS EHLQJ KRVSLWDOL]HG RU ZLOO RWKHUZLVH H[SHULHQFH VHYHUH KHDOWK SUREOHPV RU HYHQ GHDWK ´ )RU WKLV UHDVRQ WZR UHFHQW +DZDLµL VWDWHZLGH UHSRUWV FRQFOXGH WKDW WKH 6WDWH VKRXOG ³LQFUHDVH HIIRUWV WR KHOS WKH &2)$ PLJUDQW>V@ DFFHVV DQG UHFHLYH EHWWHU KHDOWK VHUYLFHV LQ +DZDLµL ´ 5LNORQ 0 ' HW DO VXSUD DW FLWLQJ +DZDLµL 8QLQVXUHG 3URMHFW +DZDLµL ,QVWLWXWH IRU 3XEOLF $IIDLUV ,PSDFWV RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ RQ +DZDLµL¶V +HDOWK &DUH 6VWHP 6WDWH RI +DZDL‫ދ‬L 'HSDUWPHQW RI WKH $WWRUQH *HQHUDO )LQDO 5HSRUW RI WKH &RPSDFWV RI )UHH $VVRFLDWLRQ 7DVN )RUFH 7KH $WWRUQH *HQHUDO¶V 7DVN )RUFH 5HSRUW ZKLFK ZDV SUHSDUHG SXUVXDQW WR D +DZDLµL 6HQDWH UHVROXWLRQ IXUWKHU UHFRPPHQGV Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 32 of 40
  • 33. WKDW WKH 6WDWH VKRXOG SURDFWLYHO ³LQFUHDVH DOO KXPDQ VHUYLFHV WR WKH SHRSOH RI WKH &2)$ QDWLRQV LQ D PRUH RUJDQL]HG SUHYHQWLRQ EDVHG DQG VWUDWHJLF ZD ´ ,G DW ,9 ,Q /LJKW RI WKH 6WDWH¶V %URDGHU &RPPLWPHQW WR 5HSDLULQJ 8QMXVW 'DPDJH WR &RPPXQLW 0HPEHUV IRU WKH %HQHILW RI $OO WKH 6WDWH %HDUV D 0RUDO $V :HOO $V /HJDO 5HVSRQVLELOLW WR &RQWLQXH D 0HDQLQJIXO /HYHO RI 0HGLFDO &DUH &RYHUDJH IRU 0LFURQHVLDQV $ 3URYLGLQJ )LQDQFLDO 6XSSRUW IRU &2)$ 5HVLGHQWV¶ 0HGLFDO &DUH LV D 0RUDO 2EOLJDWLRQ WKDW )XUWKHUV +DZDLµL¶V &RPPLWPHQW WR -XVWLFH IRU &RPPXQLW 0HPEHUV 3URYLGLQJ ILQDQFLDO VXSSRUW IRU &2)$ UHVLGHQWV¶ PHGLFDO FDUH LV D MXVWLFH LVVXH ± UHSDLULQJ WKH GDPDJH RI ORQJ VWDQGLQJ LQMXVWLFH WR &2)$ UHVLGHQWV IRU ZKLFK WKH 8QLWHG 6WDWHV KDV GLUHFW UHVSRQVLELOLW DQG IRU ZKLFK +DZDLµL LV SDUWO UHLPEXUVHG ,QGHHG +DZDLµL KDV RIWHQ DFWHG ZLWK MXVWLFH DQG FRPSDVVLRQ WRZDUG WKRVH LQ QHHG 7KH 6WDWH¶V FRPPLWPHQW HPHUJHV RXW RI +DZDLµL VWDWXWRU ODQJXDJH WKDW LQVWUXFWV ODZPDNHUV WR FRQWHPSODWH ³$ORKD WKH HVVHQFH RI UHODWLRQVKLSV LQ ZKLFK HDFK SHUVRQ LV LPSRUWDQW WR HYHU RWKHU SHUVRQ IRU FROOHFWLYH H[LVWHQFH´ ± WR UHSDLU WKH KDUPV WR FRPPXQLW PHPEHUV IRU WKH EHQHILW RI DOO 6HH +DZ 5HY 6WDW † D E ,W LV DOVR LQ WKH SXEOLF LQWHUHVW WDNLQJ FDUH RI &2)$ UHVLGHQWV¶ ,Q WKH OHJLVODWXUH GLG QRW SDVV D ELOO UHTXLULQJ +DZDLµL¶V 'HSDUWPHQW RI +XPDQ 6HUYLFHV ³WR SURYLGH PHGLFDO DVVLVWDQFH IRU GLDOVLV FKHPRWKHUDS DQG RWKHU FDQFHU WUHDWPHQWV LQSDWLHQW DQG RXWSDWLHQW SKVLFLDQ YLVLWV DQG GUXJ SUHVFULSWLRQV ´ IRU &2)$ PLJUDQWV &KDG %ODLU +DZDLL &RQJUHVVLRQDO 5HSV WR )HGV +HOS 8V &XUE 0LFURQHVLDQV +RQ &LYLO %HDW 0D KWWS ZZZ FLYLOEHDW FRP DUWLFOHV KDZDLL FRQJUHVVLRQDO UHSV WR IHGV KHOS XV FXUE PLFURQHVLDQV Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 33 of 40
  • 34. KHDOWK FDUH QHHGV UHGXFHV WKH FRVW RI WUXO H[SHQVLYH XQLQVXUHG PHGLFDO FDUH IRU 0LFURQHVLDQV LQ +DZDLµL ZKR KDYH D ULJKW WR WUDYHO KHUH XQGHU WKH &RPSDFW 8QWLO UHFHQWO &2)$ PLJUDQWV ³KDYH EHHQ WUHDWHG DV SDUW RI KXPDQLW LQ +DZDLµL ´ 6DXQGHUV HW DO VXSUD DW ,QGHHG WKH 6WDWH H[SUHVVO FRPPLWWHG LWVHOI WR HPEUDFH WKH YDOXH WKDW RXU ³FROOHFWLYH H[LVWHQFH´ DV DQ LVODQG FRPPXQLW GHSHQGV XSRQ RXU IDLU WUHDWPHQW RI ³HDFK SHUVRQ´ DPRQJ XV 1RZ WKDW WKH 6WDWH LV IDFLQJ GLIILFXOW ILQDQFLDO VWUHVV ³0LFURQHVLDQV DUH EHLQJ WROG WKDW WKH DUH QR ORQJHU SDUW RI WKH IDPLO WKDW WKH FDQ WDNH WKHLU EURNHQ ERGLHV DQG JR KRPH WR GLH ´ ,G ,I PDQ RU PRVW &2)$ UHVLGHQWV DUH GHSULYHG RI KHDOWK FDUH WKH ZLOO VXIIHU LQ D ZD WKDW QR RWKHU JURXS LQ +DZDLµL VXIIHUV 7KLV LV QRW RQO XQHTXDO WUHDWPHQW LW LV LQKXPDQH 1R RQH LV DFFXVLQJ WKH 6WDWH RI LQWHQGLQJ WKDW LQKXPDQH UHVXOW $W WKH VDPH WLPH WKH 6WDWH KDV QRW SURSRVHG DQ NLQG RI RWKHU SODQ WR DGHTXDWHO DVVLVW &2)$ UHVLGHQWV PRVW LQ QHHG 2I FRXUVH EXGJHWDU OLPLWDWLRQV DUH UHDO DQG WKH IHGHUDO JRYHUQPHQW KDV WKH XOWLPDWH GXW WR IXOILOO LWV SURPLVHV WR WKH 0LFURQHVLDQ SHRSOHV %XW HYHQ FRQVLGHULQJ WKH 6WDWH¶V ILVFDO OLPLWDWLRQ WKH 6WDWH DV D PDWWHU RI PRUDO DV ZHOO DV OHJDO REOLJDWLRQ QHHGV WR VWRS H[FOXGLQJ &2)$ UHVLGHQWV ± DQG RQO &2)$ UHVLGHQWV DPRQJ XV ± IURP DFFHVV WR PHGLFDO FDUH IRU VHULRXV LOOQHVVHV ,W QHHGV WR SURYLGH D IDLU DQG DGHTXDWH OHYHO RI PHGLFDO FDUH IRU 0LFURQHVLDQV ZKR DUH OHJDOO SUHVHQW DV PHPEHUV DQG WD[SDHUV RI WKH +DZDL‫ދ‬L FRPPXQLW LQ SDUW DV Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 34 of 40
  • 35. D UHVXOW RI WKH SHUVLVWLQJ HIIHFWV RI SDVW LQMXVWLFHV 7KLV UHIOHFWV +DZDLµL¶V FRPPLWPHQW WKDW LWV SHRSOHV¶ ³FROOHFWLYH H[LVWHQFH´ GHSHQGV LQ SDUW RQ JHQXLQH HIIRUWV WR UHSDLU WKH SHUVLVWLQJ GDPDJH RI ORQJVWDQGLQJ LQMXVWLFH VXIIHUHG E WKRVH PRVW LQ QHHG $QG LW UHIOHFWV WKH ³XEXQWX´ QRWLRQ WKDW QR RQH FDQ EH KHDOWK ZKHQ PHPEHUV RI WKH FRPPXQLW DUH VHULRXVO VLFN DQG VXIIHULQJ 6HH <DPDPRWR VXSUD DW % 'LVFKDUJLQJ WKH 6WDWH¶V 5HVSRQVLELOLW :LOO 3URSHUO %DODQFH WKH (TXLWLHV LQ )DYRU RI WKH 0LFURQHVLDQ 3HRSOH DQG :LOO )XUWKHU WKH 3XEOLF ,QWHUHVW (FRQRPLF FRQVLGHUDWLRQV SRLQW WKH VDPH ZD ³(IIRUWV WR VDYH PRQH E UHGXFLQJ KHDOWK FRYHUDJH WR 0LFURQHVLDQV ZLOO OLNHO UHVXOW LQ LQFUHDVLQJ XWLOL]DWLRQ RI WKH HPHUJHQF GHSDUWPHQW IRU ODWH VWDJH GLVHDVH ZKLFK WHQGV WR EH D YHU FRVWO DQG QRQ FRVW HIIHFWLYH VWUDWHJ WR SURYLGH FDUH /HDYLQJ YXOQHUDEOH SRSXODWLRQV ZLWKRXW DFFHVV WR DGHTXDWH KHDOWKFDUH LQFUHDVHV WKH EXUGHQ DQG FRVW WR HYHURQH ´ 5LNORQ 0 ' HW DO VXSUD DW 7KLV LV HFKRHG E SKVLFLDQ 1HDO $ 3DODIR[ ZKR WUHDWV &2)$ UHVLGHQWV LQ +DZDLµL DQG ZKR VHUYHG RQ WZR +DZDLµL VWDWHZLGH FRPPLWWHHV WKDW VWXGLHG KHDOWK FDUH FKDOOHQJHV IRU &2)$ UHVLGHQWV XQLQVXUHG SDWLHQWV ³ZLOO EH IRUFHG WR JR WR WKH KRVSLWDO HPHUJHQF URRP ´ ZKLFK ³ZLOO OHDG WR PXFK KLJKHU FRVWV IRU WKH 6WDWH RI +DZDLµL ´ 'HFODUDWLRQ RI 'U 1HDO $ 3DODIR[ ³'U 3DODIR[ 'HFO ´ ˆˆ ,Q DGGLWLRQ ³7KH 6WDWH>¶@V SURMHFWLRQ RI ILQDQFLDO VDYLQJV LQ 6WDWHZLGH KHDOWKFDUH H[SHQGLWXUHV E LQVWLWXWLQJ %++ KDV QRW EHHQ Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 35 of 40
  • 36. VXSSRUWHG E DQ 6WDWH KHDOWKFDUH HFRQRPLF DQDOVLV ´ ,G ˆ 6HH DOVR 'U $OLN 'HFO ˆ ³0DQ &2)$ 5HVLGHQWV ZLOO EH IRUFHG WR JR WR KRVSLWDO HPHUJHQF URRPV >(@PHUJHQF URRP YLVLWV DUH H[SHQVLYH DQG GR QRW VROYH RU UHSODFH JRRG SULPDU DQG SUHYHQWDWLYH PHGLFLQH RU SURYLGH UHJXODU RU ORQJ WHUP FDUH 7KXV %++ ZLOO RQO VHUYH WR LQFUHDVH WKH FRVWV RI WUHDWLQJ &2)$ 5HVLGHQWV QRW GHFUHDVH LW ´ 6DXQGHUV HW DO VXSUD DW ³WKH FRVW RI RQH >KRVSLWDO@ DGPLVVLRQ IRU DFXWH UHQDO IDLOXUH FDQ HDVLO H[FHHG WKH FRVW RI PDQ UHJXODU GLDOVLV VHVVLRQV´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³ZKLFK %++ LV OLNHO WR GR LV XQHWKLFDO LQKXPDQH DQG XQQHFHVVDU HVSHFLDOO KHUH LQ WKH 8QLWHG 6WDWHV ZKHUH ZH DUH FDSDEOH RI WUHDWLQJ DQG SUHYHQWLQJ VXFK FRQGLWLRQV HIIHFWLYHO ´ 'U 3DODIR[ 'HFO ˆ )RU DOO RI WKHVH UHDVRQV WKH EDODQFH RI HTXLWLHV WLSV VKDUSO LQ WKH 0LFURQHVLDQ $SSHOOHHV¶ IDYRU 6HH ,QGHS /LYLQJ &WU RI 6 &DOLIRUQLD ,QF Y 0D[ZHOO -ROO ) G WK &LU UHFRJQL]LQJ WKDW KHDOWK DQG Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 36 of 40
  • 37. VRFLDO ZHOIDUH FRQFHUQV DV ZHOO DV ILVFDO RQHV DUH SDUW RI WKH EDODQFH RI HTXLWLHV FDOFXOXV 7KH SXEOLF LQWHUHVW DOVR ZHLJKV KHDYLO LQ IDYRU RI D SUHOLPLQDU LQMXQFWLRQ EHFDXVH WDNLQJ FDUH RI &2)$ UHVLGHQWV¶ KHDOWK FDUH QHHGV UHGXFHV WKH FRVW RI WUXO H[SHQVLYH XQLQVXUHG PHGLFDO FDUH IRU &2)$ UHVLGHQWV LQ +DZDLµL 0RUHRYHU IRU PLJUDQWV IURP UHFHQWO ³LQGHSHQGHQW´ QDWLRQV ZLWK KLJKO GHSHQGHQW SROLWLFDO ³DVVRFLDWLRQV´ ZLWK WKH 8 6 PRUH LV DW VWDNH WKDQ WKH FRPPRQO UHFRJQL]HG LPPLJUDQW VWUXJJOHV LQ WKH 8QLWHG 6WDWHV 7KH +DZDLµL KHDOWKFDUH VKRZGRZQ KDV UH LJQLWHG ORQJ VLPPHULQJ LVVXHV UHODWHG WR WKH FRPSOH[ UHODWLRQVKLS EHWZHHQ WKH 8 6 DQG WKH 0LFURQHVLDQ QDWLRQV WKDW FRPSULVH WKH &RPSDFW RI )UHH $VVRFLDWLRQ QDWLRQV $V D PRUDO PDWWHU WKH 6WDWH¶V LQWHUHVW LQ RXU ³FROOHFWLYH H[LVWHQFH´ OLHV LQ VHUYLQJ MXVWLFH E FRQWLQXLQJ WR KHOS KHDO WKH SHUVLVWLQJ DQG LQGHHG LQWHQVLILQJ ZRXQGV RI WKH VXEMHFWV RI ORQJ VWDQGLQJ LQMXVWLFH $V D JURXS RI SKVLFLDQV SRLJQDQWO REVHUYHV ³:H DUH ERXQG WRJHWKHU E D FRPPRQ DQG VRPHWLPHV XQIRUWXQDWH ZHE RI WKHUPRQXFOHDU ZHDSRQV WHVWLQJ WUHDWLHV DQG SURPLVHV RI HFRQRPLF GHYHORSPHQW WKDW KDYH QRW FRPH WR IUXLWLRQ $ JUHDW VWDWH DQG QDWLRQ LV RQH WKDW KDV WKH DELOLW DQG NQRZ KRZ WR SURWHFW DQG DVVLVW WKH YXOQHUDEOH DQG WKRVH LQ JUHDWHVW QHHG ´ 5LNORQ 0 ' HW DO VXSUD DW Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 37 of 40
  • 38. &21&/86,21 $PLFL UHVSHFWIXOO UHTXHVW WKDW WKH &RXUW DIILUP WKH GLVWULFW FRXUW¶V RUGHU JUDQWLQJ SODLQWLIIV¶ PRWLRQ IRU SUHOLPLQDU LQMXQFWLRQ '$7(' $XJXVW % V 6XVDQ . 6HUUDQR 6XVDQ . 6HUUDQR (ULF . <DPDPRWR 'LQD 6KHN $WWRUQHV IRU $PLFL &XULDH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 38 of 40
  •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¶V EULHI LV RQH KDOI WKH SHUPLVVLEOH OHQJWK RI WKH ZRUGV IRU WKH %ULHI RI $SSHOOHHV XQGHU &LUFXLW 5XOH D % V 6XVDQ . 6HUUDQR 6XVDQ . 6HUUDQR $WWRUQH IRU $PLFL &XULDH Case: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 39 of 40
  •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ase: 11-15132 08/09/2011 ID: 7849436 DktEntry: 18 Page: 40 of 40