More Related Content Similar to En contemporary issues Similar to En contemporary issues (20) More from Loveofpeople (20) 1. ‹ % L O D O 3 K L O L S V F R P
217(0325$5
,668(6
3UHSDUHGE'U$EX$PHHQDK %LODO 3KLOLSV
2. ‹ % L O D O 3 K L O L S V F R P
7$%/(2)217(176
0$55,$*($1'',925(
3ROJDP
$UUDQJHG0DUULDJHV
7KH*XDUGLDQ
KLOG0DUULDJHV
0DUULDJHWR1RQ0XVOLPV
5DSHLQ0DUULDJH
9LROHQFHLQ0DUULDJH
'LYRUFH(DV
'LYRUFH$0DQ¶V5LJKW
$OLPRQ
:20(1¶65,*+76%,57+21752/
,$ERUWLRQ
,,RQWUDFHSWLRQ
3RSXODWLRQRQWURO
+LMDDE
,QKHULWDQFH
7ZR:LWQHVVHV
6HSDUDWH(GXFDWLRQ
5,0,1$/-867,(
0XUGHU
7KHIW
$GXOWHUDQG)RUQLFDWLRQ
+RPRVH[XDOLW
$SRVWDV
',(7$5/$:6
$OFRKRO
3RUN
7REDFFR
$QLPDO6ODXJKWHU
'RJV
7+($576
0XVLF
$UWDQG3KRWRJUDSK
,6/$$0$1'02'(516,(1(
7KHRURI(YROXWLRQ
7KH%LJ%DQJ
ORQLQJ
7HVW7XEH%DELHV
6H[FKDQJH2SHUDWLRQV
2UJDQ'RQDWLRQ
RVPHWLF6XUJHU
(XWKDQDVLD
$OLHQV
(2120,6
,QWHUHVW
,VODDPLF%DQNLQJ
,6/$$0$1'7(5525,60
,VODDP6SUHDGEWKH6ZRUG
6XLFLGH%RPELQJV
7HUURULVP
-LKDDG
6(76
6KL¶LVP
.KDDULMLWHV ,EDDGLWHV
,VPDLOLVP
'UX]H
1XVDLULVP
%DKDLVP
4DGLDQLVP
1DWLRQRI,VODP
3. ‹ % L O D O 3 K L O L S V F R P
0$55,$*($1'',925(
32/*$0
0XVOLPV DUH RIWHQ DFFXVHG RI EHLQJ SURPLVFXRXV EHFDXVH SROJDP LV OHJDO LQ
,VODDP
,VODDP GLG QRW LQWURGXFH SROJDP 8QUHVWULFWHG SROJDP SUDFWLFHG LQ PRVW
KXPDQ VRFLHWLHVWKURXJKRXWWKHZRUOGLQHYHUDJH,VODDPUHJXODWHGSROJDPE
OLPLWLQJWKHQXPEHURIZLYHVDQGHVWDEOLVKLQJUHVSRQVLELOLWLQLWVSUDFWLFH
0RQRJDP RI WKH :HVW LQKHULWHG IURP *UHHFH DQG 5RPH ZKHUH PHQ ZHUH
UHVWULFWHG E ODZWRRQHZLIHEXWZHUHIUHHWRKDYHDVPDQPLVWUHVVHVDPRQJWKH
PDMRULW VODYH SRSXODWLRQ DV WKH ZLVKHG,QWKH:HVWWRGDPRVWPDUULHGPHQ
KDYH H[WUDPDULWDO UHODWLRQV ZLWK PLVWUHVVHV JLUOIULHQGV DQG SURVWLWXWHV
RQVHTXHQWOWKH:HVWHUQFODLPWRPRQRJDPLVIDOVH
0RQRJDPLOORJLFDO,IDPDQZLVKHVWRKDYHDVHFRQGZLIHZKRPKHWDNHVFDUHRI
DQG ZKRVH FKLOGUHQ FDUU KLV QDPH DQG KH SURYLGHV IRU KH LV FRQVLGHUHG D
FULPLQDO ELJDPLVW ZKR PD EH VHQWHQFHG WR HDUV LQ MDLO+RZHYHULIKHKDV
QXPHURXVPLVWUHVVHVDQGLOOHJLWLPDWHFKLOGUHQKLVUHODWLRQLVFRQVLGHUHGOHJDO
0HQ FUHDWHGSROJDPRXVEHFDXVHRIDQHHGLQKXPDQVRFLHW7KHUHLVQRUPDOOD
VXUSOXV RI ZRPHQ LQPRVWKXPDQVRFLHWLHV
7KHVXUSOXVLVDUHVXOWRIPHQGLQJ
LQ ZDUVYLROHQWFULPHVDQGZRPHQRXWOLYLQJPHQ
7KHXSVXUJHLQKRPRVH[XDOLW
IXUWKHU LQFUHDVHV WKH SUREOHP ,I VVWHPV GR QRW FDWHU WR WKH QHHG RIVXUSOXV
ZRPHQ LWZLOOUHVXOWLQFRUUXSWLRQLQVRFLHW([DPSOH*HUPDQDIWHU:RUOG:DU
,, ZKHQVXJJHVWLRQVWROHJDOL]HSROJDPZHUHUHMHFWHGEWKHKXUFK5HVXOWLQJ
LQ WKH OHJDOL]DWLRQ RI SURVWLWXWLRQ *HUPDQSURVWLWXWHVDUHFRQVLGHUHGDVZRUNHUV
OLNH DQ RWKHU SURIHVVLRQ 7KH UHFHLYH KHDOWK EHQHILWV DQG SDWD[HVOLNHDQ
RWKHUFLWL]HQ)XUWKHUPRUHWKHUDWHRIPDUULDJHKDVEHHQVWHDGLOGHFOLQLQJDVHDFK
VXFFHHGLQJJHQHUDWLRQILQGVWKHLQVWLWXWLRQRIPDUULDJHPRUHDQGPRUHLUUHOHYDQW
:HVWHUQ DQWKURSRORJLVWV DUJXH WKDW SROJDP LV D JHQHWLF WUDLW E ZKLFK WKH
VWURQJHVW JHQHV RI WKH JHQHUDWLRQ DUH SDVVHG RQ ([DPSOH WKH OLRQ NLQJ WKH
VWURQJHVW RI WKH SDFN PRQRSROL]HV WKH IHPDOHV WKHUHE LQVXULQJ WKDWWKHQH[W
JHQHUDWLRQRIOLRQFXEVZLOOEHKLVRIIVSULQJ
,QVWLWXWLRQDO SROJDP SUHYHQWV WKH VSUHDG RI GLVHDVHV OLNH +HUSHVDQG$,'6
6XFKYHQHUHDOGLVHDVHVVSUHDGLQSURPLVFXRXVVRFLHWLHVZKHUHH[WUDPDULWDODIIDLUV
DERXQG
3ROJDP SURWHFWV WKH LQWHUHVWV RI ZRPHQ DQG FKLOGUHQ LQ VRFLHW 0HQ LQ
:HVWHUQ VRFLHW PDNH WKH ODZV7KHSUHIHUWRNHHSSROJDPLOOHJDOEHFDXVHLW
DEVROYHV WKHPRIUHVSRQVLELOLW/HJDOL]HGSROJDPZRXOGUHTXLUHWKHPWRVSHQG
5XVVLDPDOHWRIHPDOH8.PDOHWRIHPDOH86$PDOHWR
IHPDOH%UD]LOPDOHWRIHPDOH7KH1HZ(QFFORSDHGLD%ULWDQQLFDYROSS
5. ‹ % L O D O 3 K L O L S V F R P
RQ WKHLU DGGLWLRQDO ZLYHV DQG WKHLU RIIVSULQJ 0RQRJDPDOORZVWKHPWRHQMR
H[WUDPDULWDODIIDLUVZLWKRXWHFRQRPLFFRQVHTXHQFH
2QO D PLQRULW ZLOOSUDFWLFHSROJDPLQ0XVOLPVRFLHW,QVSLWHRISROJDP
EHLQJ OHJDO LQ 0XVOLP FRXQWULHV RQO RI 0XVOLPV LQ WKHVHFRXQWULHV
SUDFWLFH SROJDP $OWKRXJK WKH PDMRULW RIPHQZRXOGOLNHWRKDYHPRUHWKDQ
RQH ZLIH WKH FDQQRW DIIRUG WKH H[SHQVHRIPDLQWDLQLQJPRUHWKDQRQHIDPLO
(YHQ WKRVH ZKR DUH ILQDQFLDOO FDSDEOH RI ORRNLQJDIWHUDGGLWLRQDOIDPLOLHVDUH
RIWHQ UHOXFWDQW GXH WRWKHSVFKRORJLFDOEXUGHQVRIKDQGOLQJPRUHWKDQRQHZLIH
7KHIDPLOSUREOHPVDQGPDULWDOGLVSXWHVDUHPXOWLSOLHGLQSOXUDOPDUULDJHV
RQGLWLRQV KDYH EHHQ DGGHG IRU SROJDP LQ PDQ 0XVOLP FRXQWULHV )RU
H[DPSOHLQ(JSWWKHSHUPLVVLRQRIWKHILUVWZLIHPXVWILUVWEHREWDLQHG7KLVDQG
VLPLODUFRQGLWLRQVDUHDUHVXOWRIFRORQLDOGRPLQDWLRQ1RZRPDQLQKHUULJKWPLQG
ZLOO JLYH KHUKXVEDQGSHUPLVVLRQWRWDNHDVHFRQGZLIH6XFKDFRQGLWLRQLQIDFW
QHJDWHVWKHSHUPLVVLRQJLYHQE*RGLQWKH4XU¶DDQ
2WKHUV KDYH DFFHSWHG SROJDPRQFRQGLWLRQWKDWLWQRWEH IRU³OXVW´7KDWLVLI
WKH ZLIH LVLOORUXQDEOHWREHDUFKLOGUHQRUXQDEOHWRIXOILOOWKHKXVEDQG¶VVH[XDO
QHHGV HWFWDNLQJDVHFRQGZLIHLVDFFHSWDEOH2WKHUZLVHLWEHFRPHV³OXVW´RQWKH
KXVEDQG¶V SDUW DQG LVFRQVHTXHQWOQRWDFFHSWDEOH7KHUHDOLWLVWKDW³OXVW´ZDV
LQYROYHG LQ WKH PDUULDJH RIWKHILUVWZLIH:KLVLWDFFHSWDEOHLQWKHFDVHRIWKH
ILUVW DQGQRWWKHVHFRQG$VKDVDOUHDGEHHQSRLQWHGRXWPHQDUHSROJDPRXVE
QDWXUH7RWUWRFXUELWEVXFKFRQGLWLRQVZLOORQOOHDGWRFRUUXSWLRQLQVRFLHW
)HPLQLVWV PD REMHFW WR WKLVPDOHULJKWELQVLVWLQJWKDWZRPHQVKRXOGDOVREH
DEOH WR SUDFWLFH SROJDP +RZHYHU D ZRPDQ PDUULQJIRXUKXVEDQGVZRXOG
RQO LQFUHDVH WKHSUREOHPRIVXUSOXVZRPHQ)XUWKHUPRUHQRFKLOGZRXOGDFFHSW
KLVRUKHUPRWKHULGHQWLILQJWKHIDWKHUEWKH³HHQ PHHQ PLQH PR´PHWKRG
7KH TXHVWLRQ ZKLFK UHPDLQV LV ³,I *RG LV JRRG DQG ZLVKHV JRRG IRU +LV
FUHDWXUHV ZK GLG KH OHJLVODWH VRPHWKLQJ ZKLFK ZRXOG EH KDUPIXO WR PRVW
ZRPHQ´ 'LYLQH OHJLVODWLRQ ORRNVDWWKHVRFLHWDVDZKROHVHHNLQJWRPD[LPL]H
EHQHILW,IDFHUWDLQ OHJLVODWLRQEHQHILWVWKHPDMRULWRIWKHVRFLHWDQGFDXVHVVRPH
HPRWLRQDOKDUPWRDPLQRULWWKHJHQHUDOZHOIDUHRIVRFLHWLVJLYHQSUHFHGHQFH
$55$1*('0$55,$*(6
0XVOLPVDUHRIWHQDFFXVHGRIIRUFLQJWKHLUGDXJKWHUVLQWRPDUULDJH
,VODPLF ODZ UHTXLUHV WKDW IHPDOHV PXVW JLYH WKHLU SHUPLVVLRQ EHIRUH WKHDUH
PDUULHG 3URSKHW 0XKDPPDG U 6. VDLG ³7KH SHUPLVVLRQ RI YLUJLQV VKRXOGEH
WDNHQ DQG WKHLUVLOHQFHLVWKHLU FRQVHQW´
2QRQHRFFDVLRQDZRPDQFDPHWRWKH
3URSKHW U 7. DQG LQIRUPHG KLP WKDW KHU IDWKHU KDGPDUULHGKHURIIZLWKRXWKHU
SHUPLVVLRQ +H RIIHUHG WR DQQXO KHU PDUULDJH KRZHYHUVKHGLGQRWDFFHSWKLV
RIIHU VDLQJ WKDW VKH RQO ZDQWHG WR FRQILUP KHU ULJKW$SUHYLRXVOPDUULHG
ZRPDQKDVWKHULJKWWRFKRRVHIRUKHUVHOI
8. ‹ % L O D O 3 K L O L S V F R P
0XVOLPV DUHHQFRXUDJHGWRKHOSWKHLUFKLOGUHQILQGVXLWDEOHPDULWDOSDUWQHUVVLQFH
PDOHV DQG IHPDOHV DUHUDLVHGVHSDUDWHOLQVRFLHW:RPHQDUHVSDUHGKDYLQJWR
ORRNIRUWKHLURZQPDWHV
)URP D :HVWHUQ SHUVSHFWLYH ZKHUH WHHQDJHUVDUHRIWHQUHTXLUHGWROHDYHKRPH
DQG JRRXWWRZRUNDQGORRNDIWHUWKHPVHOYHVLWZRXOGVHHPOXGLFURXVIRUSDUHQWV
WRODWHURQVXJJHVWZKRPWKHVKRXOGPDUU
,W KDV EHFRPH D SUDFWLFH DPRQJ VRPH0XVOLPVWRIRUFHWKHLUFKLOGUHQWRPDUU
WKHLU FRXVLQV )RU 0XVOLPV LQ WKH:HVWLWEHFRPHVDPHDQVWRKHOSWKHLUIDPLO
PHPEHUV DOVR UHDFK WKH:HVWRQVHTXHQWOWKHUHKDYHEHHQDQXPEHURIFDVHV
UHSRUWHG LQWKHQHZVSDSHUVLQ(QJODQGRIWKH+RPH2IILFHUHVFXLQJ0XVOLPJLUOV
IURP IRUFHGPDUULDJHVDWWKHDLUSRUW7KHUHDUHDOVRPDQ0XVOLPJLUOVZKRKDYH
UXQ DZD IURP KRPH UDWKHU WKDQ EH IRUFHG WR PDUU UHODWLYHV LQ YLOODJHV LQ
3DNLVWDQ RU ,QGLD 6XFKJLUOVDUHEHLQJJLYHQQHZLGHQWLWLHVESROLFHDXWKRULWLHV
DQGZLOOOLNHOORVHWKHLU,VODDPLQWKHSURFHVV
7+(*8$5',$1
7KH 0XVOLP ZRPDQ LV FRQVLGHUHG RSSUHVVHG VLQFH VKH PXVW KDYH KHU IDWKHU¶V
SHUPLVVLRQWRJHWPDUULHG
,VODDPLF ODZ UHTXLUHV WKH SHUPLVVLRQRIDZRPDQ¶VIDWKHUIRUKHUPDUULDJHWREH
YDOLG 3URSKHW 0XKDPPDG U 10. 7KHIDWKHUZLOO
EH PRUH FDSDEOH RIMXGJLQJWKHRXQJPDQREMHFWLYHO7KHRXQJZRPDQFRXOG
HDVLO EH IRROHG RU VZHHWWDONHG DV VKH WHQGV WR EH PRUH HPRWLRQDO LQ KHU
MXGJHPHQW
,I WKH JXDUGLDQ UHIXVHV SURSRVDOV IRU LOOHJLWLPDWH UHDVRQVOLNHWKHSHUVRQVWULEH
UDFHFRORUVWDWXVWKHRXQJODGKDVWKHULJKWWRVHHNUHGUHVVIURPWKHFRXUW,IKH
MXGJH FRQFOXGHV WKDW WKH IDWKHU LV ZURQJIXOO SUHYHQWLQJ KLV GDXJKWHU IURP
PDUULDJH KH PD WDNH WKH JXDUGLDQVKLS IURP WKH IDWKHU DQG DFW DV WKHJLUOV
JXDUGLDQ
+,/'0$55,$*(6
7KH 3URSKHWU 12. ‹ % L O D O 3 K L O L S V F R P
SURVWLWXWHV RU LPSRYHULVKHG SHRSOH ZLOOLQJ WRJLYHWKHLUFKLOGUHQDZDIRUDIHZ
SHQQLHV
7KH DJH RI FRQVHQW IRU ZRPHQ VHWLQWKH:HVWYDULHVIURP WR7KHVHDJHV
ZHUHDUULYHGDWEGHPRFUDWLFYRWHDQGKDYHQRDFWXDOUHODWLRQVKLSWRWKHZRPDQ¶V
DELOLW RU LQDELOLW IRU VH[XDO UHODWLRQV RU PDUULDJH RQVHTXHQWO ZKDW LV
FRQVLGHUHGOHJDOVH[LQ)UDQFHPDEHFRQVLGHUHGUDSHLQ(QJODQG
,VODDP VHWV WKH DJH RI PDUULDJH DW SXEHUW DV LW LV WKH QDWXUDO GLYLGLQJ OLQH
EHWZHHQ FKLOGKRRG DQG DGXOWKRRG 0HQVWUXDWLRQ LQGLFDWHV WKDWDRXQJJLUOKDV
UHDFKHG FKLOGEHDULQJ DJH 7KLV DJH PD YDU IURPFRXQWUWRFRXQWUEXWLWLV
GLVFHUQDEOHDQGQRWDUELWUDU
0RVW VRFLHWLHV DURXQG WKHZRUOGVDQFWLRQHGFKLOGPDUULDJHVXSXQWLOWKLVFHQWXU
,WZDVQRWLQWURGXFHGE,VODDPEXWUHJXODWHG
,VODDP VWLSXODWHV WKDW DJLUORUERPDUULHGEHIRUHSXEHUWZLOOQRWOLYHZLWKWKHLU
VSRXVH XQWLOWKHKDYHDWWDLQHGSXEHUW)XUWKHUPRUHWKHKDYHWKHULJKWWRFDQFHO
RUSURFHHGZLWKWKHPDUULDJHZKHQWKHUHDFKSXEHUW
µ$D¶LVKDK ZDVVHYHQZKHQVKHZDVPDUULHGRIIWRWKH3URSKHWU 13. DQGVKHFDPHWR
OLYHZLWKKLPZKHQVKHUHDFKHGSXEHUWDWQLQH
:RPHQ DEXVHGDVFKLOGUHQXVXDOOKDYHGLIILFXOWWLPHVFRSLQJDVDGXOWV7KHDUH
RIWHQ XQVWDEOH DQG SVFKRORJLFDOO KDQGLFDSSHG µ$D¶LVKDK EHFDPHWKHOHDGLQJ
IHPDOH VFKRODURIKHUWLPHDQG FRQYHHGWRWKHQH[WJHQHUDWLRQDQHQRUPRXVERG
RI ,VODDPLF ODZ 6KH ZDV NQRZQ WR EH WKH IRXUWKPRVWSUROLILFQDUUDWRURIWKH
3URSKHWLF WUDGLWLRQVRIDOORIWKH3URSKHW¶VIROORZHUV
0$55,$*(72 121086/,06
0XVOLPPDOHVDUHDOORZHGWRPDUUQRQ0XVOLPIHPDOHVEXW0XVOLPIHPDOHVDUHRQO
DOORZHG WR PDUU 0XVOLP PDOHV7KLVLVRIWHQFLWHGDVGLVFULPLQDWLRQDQGRQHRIWKH
VPEROVRIRSSUHVVLRQRI0XVOLPIHPDOHV
0XVOLP PDOHV DUHQRWDOORZHGWRPDUUDQQRQ0XVOLPIHPDOH2QOKULVWLDQV
DQG -HZV 3HRSOH RI WKH%RRN 14. DQGQRWDQRWKHUUHOLJLRQ7KLVLVGXHWRWKHIDFW
WKDW WKHVFULSWXUHVKHOGVDFUHGEKULVWLDQVDQG-HZVGRFRQWDLQODUJHSRUWLRQVRI
UHYHODWLRQ HYHQ WKRXJK WKHWH[WVKDYHEHHQGLVWRUWHGDQGFKDQJHGRQVHTXHQWO
LQ KRQRURIWKHUHYHODWLRQVWLOOUHPDLQLQJLQWKHVHWH[WVSHUPLVVLRQZDVJUDQWHGWR
PDUU WKHLUZRPHQ+RZHYHUWKHFRQGLWLRQRIFKDVWLWLVDGGHGWRWKHSHUPLVVLRQ
PHQWLRQHG LQ WKH 4XU¶DDQ RQVHTXHQWO RQO DZRPDQZKRLVHLWKHU DYLUJLQ
GLYRUFHH RU ZLGRZ FDQ EH PDUULHG 7KLV PHDQV WKDW WKH FRPPRQ SUDFWLFHRI
0XVOLPV IURP WKH (DVW FRPLQJ WR (XURSH DQG $PHULFD DQGILQGLQJEOXHHHG
EORQGHV LQ GLVFRV IRU ZLYHV LV TXLWH LOOHJLWLPDWH )LQGLQJFKDVWHIHPDOHVLQWKH
:HVW LV PRUH GLIILFXOW WKDQ ILQGLQJ WKH SURYHUELDO³QHHGOHLQWKHKDVWDFN´%
PLGWHHQVYLUJLQLWLVORRNHGDWDVDIDXOWUDWKHUWKDQDYLUWXH
7KH UHDVRQ IRU DOORZLQJ PHQ DQGQRWZRPHQLVLQRUGHUWRSURWHFWWKHZRPDQ¶V
UHOLJLRQ,ID0XVOLPPDQUHTXHVWHGKLVKULVWLDQZLIHQRWWREULQJDOFRKRORUSRUN
15. ‹ % L O D O 3 K L O L S V F R P
LQKLVKRXVHDQGWKDWVKHQRWZHDU PLQLVNLUWVRUNLVVKLVIULHQGVVKHFRXOGFRPSO
ZLWKRXW DIIHFWLQJ KHU UHOLJLRXV WHDFKLQJV +RZHYHU ,I D KULVWLDQ KXVEDQG
UHTXHVWHG KLV 0XVOLPZLIHWRSXUFKDVHDOFRKRODQGVHUYHKLPSRUNWRZHDUPLQL
VNLUWV DQG NLVV KLVIULHQGVVLQFHLWLVKLVFXVWRPWRNLVVWKHZLYHVRIKLVIULHQGV,W
LV QDWXUDO IRU D ZLIHWRWUWRSOHDVHKHUKXVEDQG,QWKHFDVHRIWKH0XVOLPZLIH
WKDWFRXOGOHDGWRWKHGHVWUXFWLRQRIKHUIDLWK
0DUULDJH WRQRQ0XVOLPVLVGLVFRXUDJHGLQVLWXDWLRQVZKHUH0XVOLPVDUHZHDNRU
LQ WKH PLQRULWLQRUGHUWRVDIHJXDUGWKHUHOLJLRQRIWKHFKLOGUHQ,ID0XVOLPPDQ
PDUULHV D QRQ0XVOLP ZRPDQLQWKH:HVWDQGWKHLUPDUULDJHHQGVLQGLYRUFHRU
WKH PDQ GLHV WKH FRXUWV ZLOODZDUGFXVWRGRIWKHFKLOGUHQWRWKHZLIHZKRZLOO
OLNHO UDLVH WKHP DV QRQ0XVOLPV +RZHYHU LI WKHZHUHPDUULHGLQD0XVOLP
FRXQWU WKH6KDUHH¨DK ZRXOGQRWJLYHWKHFKLOGUHQWRDQRQ0XVOLPPRWKHU7KH
ZRXOGLQVWHDGEHJLYHQWRHLWKHUWKHKXVEDQGRUKLVUHODWLYHVLQRUGHUWRLQVXUHWKH
UHFHLYHD0XVOLP XSEULQJLQJ
5$3(,1 0$55,$*(
,Q WKH:HVWDZRPDQPDFKDUJHKHUKXVEDQGIRUUDSHDQGKHPDEHSURVHFXWHGDQG
MDLOHG ,I WKH KXVEDQG GHVLUHV VH[XDO UHODWLRQV DQG VKH GRHVQRWDQGKHLQVLVWVLWLV
FRQVLGHUHGUDSH7KHZLIHKDVWKHULJKWWRVDQR
0HQDQGZRPHQDUHFRQVLGHUHGHTXDODFFRUGLQJWR:HVWHUQVWDQGDUGV1RRQHKDV
WKH ILQDODXWKRULWLQPDUULDJHRQVHTXHQWOZKHQWKHVSRXVHVGLIIHUDQGQHLWKHU
RQHEDFNVGRZQWKHHQGUHVXOWLVGLYRUFH
0HQ DUH FRQVLGHUHGWKHKHDGRIWKHIDPLODQGWKHILQDOGHFLVLRQVDUHLQKLVKDQG
7KLV KDV EHHQ WKH QDWXUDORUGHULQWKHYDVWPDMRULWRIVRFLHWLHVLQZRUOGDQFLHQW
DQG PRGHUQ 7KH PDQ¶VUHVSRQVLELOLWLVWRSURYLGHIRRGFORWKLQJDQGVKHOWHUIRU
KLV ZLIH DQG KHU UHVSRQVLELOLW LV WR REH KLP DV ORQJ DV KLV UHTXHVWV DUH
SHUPLVVLEOHDFFRUGLQJWR,VODDPLFODZ
:RPHQ DQG PHQ KDYH GLIIHUHQW FDSDFLWLHV IRU VH[XDOUHODWLRQV$ZRPDQPD
KDYH UHODWLRQVZLWKRXWKDYLQJDQGHVLUHDWDOO)RUH[DPSOHSURVWLWXWHVPDKDYH
VH[ ZLWK D ODUJH QXPEHU RI PHQ RQH LPPHGLDWHO DIWHU WKHRWKHUIRUPRQH
:KHUHDV D PDQ PD EH LQFDSDEOH RI KDYLQJ VH[ LI KH KDV QR GHVLUH DW DOO
RQVHTXHQWO WKH 3URSKHW U 16. LQVWUXFWHG ZRPHQ WR FRPH WR WKHLU KXVEDQGV
ZKHQHYHU WKH DUH FDOOHG XSRQ
EXW KHGLGQRWLQVWUXFWPHQYLVHYHUVD7KXVLQ
3URSKHW 0XKDPPDGU 19. ‹ % L O D O 3 K L O L S V F R P
9,2/(1(,1 0$55,$*(
7KH ILQJHU LV RIWHQ SRLQWHG DW 0XVOLPV DV EHLQJ ZLIH EHDWHUV VLQFH,VODDPLFODZ
SHUPLWVKLWWLQJZLYHV
'RPHVWLF YLROHQFHLVQRWXQLTXHWR0XVOLPVRFLHWLHV LWLVZLGHVSUHDGWKURXJKRXW
WKH ZRUOG,QIDFWWKHUDWHRIYLROHQFHLVIDUKLJKHULQ:HVWHUQFRXQWULHVLQZKLFKLW
LV LOOHJDO IRU KXVEDQGV WR KLW WKHLU ZLYHV7KHUHDVRQEHLQJWKHH[WHQGHGIDPLO
VWUXFWXUH¶V UROH LQGRPHVWLFGLVSXWHV,QWKH:HVWWKHIDPLOLVUHGXFHGWRZKDWLV
FRPPRQO UHIHUUHG WR DV WKH ³QXFOHDU IDPLO´ WKH KXVEDQG ZLIH DQG NLGV
RQVHTXHQWO UHODWLYHV KDYHOLWWOHRUQRFRQFHUQLQGRPHVWLFGLVSXWHV,Q0XVOLP
FRPPXQLWLHVWKHUHODWLYHVDUHHQFRXUDJHGWRLQWHUIHUHWRSURWHFWWKHULJKWVRIWKHLU
GDXJKWHU VLVWHUQLHFHDXQWRUFRXVLQ)DPLOLHVRIWHQOLYHWRJHWKHURULQWKHVDPH
YLFLQLWDQGIDPLOFRQWDFWUHPDLQVVWURQJ
7KH :HVW¶VDWWLWXGHWRZDUGFRUSRUDOSXQLVKPHQWKDVFKDQJHGGUDVWLFDOOVLQFH'U
6SRFN QRWRIWKH(QWHUSULVH@SXEOLVKHGKLVVHPLQDOZRUNLQWKH¶VRQWKHUHDULQJ
RI FKLOGUHQ +LVERRNEHFDPHDVWDQGDUGQRWRQOIRUSDUHQWLQJEXWLWVSULQFLSOHV
EHFDPH VWDQGDUGV IRU HGXFDWLRQDOLQVWLWXWLRQV+LVYLHZZDVWKDWFKLOGUHQVKRXOG
EH WUHDWHG DV OLWWOHDGXOWV7KHVKRXOGEHUHDVRQHGZLWKDQGDGYLVHGEXWQRWKLW
,Q WKH VDPH ZD WKDW DV DGXOWV RQHZRXOGQRWKLWDQRWKHUDGXOWLQRUGHUWRJHW
WKHP WR IROORZLQVWUXFWLRQVQRUZRXOGWKHEHKLWIRUGLVREHLQJRUGHUVFKLOGUHQ
VKRXOG QRW EH VWUXFN $V DUHVXOWWKHXVHRIFRUSRUDOSXQLVKPHQWLQVFKRROVZDV
DEDQGRQHG ,W KDG DOUHDG EHHQ VWRSSHG LQ SULVRQV LQ IDYRU RI UHIRUP 7KH
FRQVHTXHQFH LQ VFKRROV LV WKDW WHDFKHUV EHFDPH KRVWDJHV LQ WKHKDQGVRIWKHLU
VWXGHQWV $ QXPEHU RI FDVHV RI VWXGHQWV DWWDFNLQJWHDFKHUVRFFXUUHGLQWKHODWH
VL[WLHV DQG VHYHQWLHV $V DUHVXOWPRVWLQQHUFLWVFKRROVLQ$PHULFDKDYHPHWDO
GHWHFWRUVDWWKHLUJDWHVLQRUGHUWRGLVDUPVWXGHQWV
,VODDP UHFRJQL]HV FRUSRUDO SXQLVKPHQW IRU PDMRU FULPHV ODVKHV IRU
IRUQLFDWLRQ IRUGUXQNHQQHVVDQGVODQGHUHWF)XUWKHUPRUHUHJDUGLQJFKLOGUHQ
WKH 3URSKHW U 20. VDLG ³7HDFK RXU FKLOGUHQWKHSUDHUZKHQWKHDUHVHYHQDQG
VSDQN WKHP IRU LW DW WKH DJH RI WHQ´
7KHUHDUHOLPLWDWLRQVLQWKDWWKH3URSKHW
SURKLELWHGKLWWLQJLQWKHIDFHHYHQLQWKHFDVHRIDQLPDOV
,W LV WUXH WKDW WKH 6KDUHH¨DK GRHVSHUPLWDKXVEDQGWRKLWKLVZLIH$OODDKVWDWHG
WKDW LQ WKH 4XU¶DDQ 6RRUDKDQ1LVDD 22. DOVRVDLG³RX
KDYH ULJKWV RYHU RXUZRPHQWKDWWKHGRQRWDOORZDQRQHRXGLVOLNHLQWRRXU
KRPH ,I WKH GLVREHRXRXPDVSDQNWKHP$QGWKHZRPDQ©VULJKWRQRXLV
WKDW RXFORWKHKHUDQGIHHGKHUMXVWODFFRUGLQJWRRXUPHDQV ´
+RZHYHUWKDW
SHUPLVVLRQ LV XQGHU VSHFLDO FRQGLWLRQVDQGZLWKVHYHUHOLPLWDWLRQV$KXVEDQGLV
³0HQ DUH SURWHFWRUV DQG PDLQWDLQHUV RI ZRPHQ EHFDXVH $OODDK IDYRUHG WKHPRYHUZRPHQDQG
EHFDXVH WKH VSHQG WR VXSSRUW WKHP IURP WKHLUPHDQV7KHUHIRUHWKHULJKWHRXVZRPHQDUHGHYRXWO
REHGLHQW DQG JXDUG ZKDW $OODDK LQVWUXFWHG WKHP WR JXDUG LQ WKHLUKXVEDQGV¶DEVHQFH$VIRUWKRVH
UHEHOOLRXV ZRPHQ DGPRQLVKWKHPWKHQDEDQGRQWKHPLQWKHLUEHGVWKHQ EHDWWKHP%XWLIWKHUHWXUQ
WRREHGLHQFHGRQRWPDNHWKHLUZDGLIILFXOW´
6DKLK0XVOLPYROSSQR
23. ‹ % L O D O 3 K L O L S V F R P
QRW SHUPLWWHG WR EHDW KLVZLIHVLPSOEHFDXVHVKHVSLOOHGKLVWHDEXUQWKLVWRDVW
IRUJRW WR LURQ KLV VKLUW HWF IRU H[DPSOH 7KH 4XU¶DDQLF SHUPLVVLRQ JLYHQ LV
VSHFLILFDOO LQ WKH FDVH RI GLYRUFH DV D ODVW UHVRUW WR VDYH WKHPDUULDJH7KH
4XU¶DDQLF YHUVHRXWOLQHVWKHSURFHGXUHVZKLFKVKRXOGEHIROORZHGLQWKHFDVHRID
UHEHOOLRXV DQG XQMXVWO GLVREHGLHQW ZLIH6KHVKRXOGILUVWEHYHUEDOODGYLVHGRI
KHU REOLJDWLRQV,IWKDWIDLOVWKHKXVEDQGVKRXOGWKHQFHDVHKDYLQJVH[XDOUHODWLRQV
ZLWK KHU )DLOLQJ WKDW LIWKHKXVEDQGVHHVLWXVHIXODQGDVDILQDOVWHSLQRUGHUWR
EULQJ KHU EDFN LQWR OLQH KHLVDOORZHGWRKLWKHU:KDWLVPHDQWEWKH3URSKHW¶V
ZRUGV ³,I WKH GLVREH RX´ LV UHEHOOLRXV GLVREHGLHQFH WR LQVWUXFWLRQV
SHUPLWWHG E,VODDPLFODZ$VWRLQVWUXFWLRQVZKLFKFRQWUDGLFWWKH6KDUHH¨DKVKH
LV LQVWUXFWHGWRGLVREH7KH3URSKHWU 25. VDLG³
'R QRW KLW KHULQKHUIDFHQRUFXUVHKHU´
DQG³'RQRWEHDWRXUZLYHVDVRX
ZRXOG RXU VHUYDQW JLUOV LQ SUH,VODPLF WLPHV´
,I WKH KXVEDQG DEXVHV WKLV
FRQGLWLRQDO SHUPLVVLRQDQGEUXWDOL]HVKLVZLIHKHUPDOHUHODWLYHVKDYHWKHULJKWWR
LQWHUYHQHDQGWKHFDVHFDQEHWDNHQWRWKHFRXUWVLILWLVVHYHUHHQRXJK
RQVHTXHQWO WKH LQWHQW RIWKLVEHDWLQJLVQRWLQIOLFWLQJSDLQDQGSXQLVKPHQWEXW
PHUHO WR EULQJ WKH ZRPDQ EDFN WR KHUVHQVHVDQGUHHVWDEOLVKDXWKRULWLQWKH
IDPLO
',925(($6
,W LV JHQHUDOO KHOG WKDW GLYRUFH LQ,VODDPLVYHUHDVDPDQRQOKDVWRVDWRKLV
ZLIH³RX¶UHGLYRUFHG´WKUHHWLPHVDQGLWVDOORYHU
,Q UHDOLW GLYRUFH LV QRWWKDWHDVLQ,VODDP7KHUHDUHFRQGLWLRQVZKLFK PXVWEH
IXOILOOHG HYHQ EHIRUH LWV SURFHHGLQJV FDQ EHJLQ )LUVWO GLYRUFH FDQQRWEH
SURQRXQFHG ZKLOH D ZRPDQ LV PHQVWUXDWLQJ 3ULRU WR WKH EHJLQQLQJ RI WKH
PHQVWUXDO FFOH PDQ ZRPHQ VXIIHU PRRG VZLQJV DQG EHFRPH FUDQN 7KH
ELRORJLFDO FKDQJHV LQ WKHLU VVWHPV FDXVH SVFKRORJLFDO FKDQJHV WKDW DUH
FRPPRQO NQRZQ DV 306 SUHPHQVWUXDO VQGURPH 26. ,QRUGHUWRHQVXUHWKDWWKH
FDXVH RI WKH KXVEDQGSURQRXQFLQJGLYRUFHLVQRWDSURGXFWRIEHKDYLRUDOFKDQJHV
EURXJKW RQ E 306 GLYRUFH SURQRXQFHPHQW GXULQJ PHQVHV LV SURKLELWHG
6HFRQGO WKH GLYRUFH FDQQRW EHSURQRXQFHGGXULQJDSHULRGEHWZHHQPHQVHVLQ
ZKLFK WKHFRXSOHKDVKDGVH[XDOUHODWLRQV7KHUDWLRQDOEHLQJWKDWLIWKHPDQFDUHG
HQRXJK DERXW WKH ZRPDQ WR KDYH VH[XDOUHODWLRQV KHQHHGVWRUHIOHFWDERXWKLV
GHFLVLRQ PRUH EHIRUH JRLQJ DKHDG +HZLOOKDYHWRZDLWXQWLODIWHUWKHZRPDQ¶V
QH[WPHQVHVHQGVEHIRUHKHFDQSURQRXQFHGLYRUFH
7KH SURQRXQFHPHQWLVFRQVLGHUHGLQYDOLGLIWKHPDQZDVLQVXFKDUDJHWKDWKHGLG
QRW NQRZ ZKDW KH ZDV VDLQJ 7KLV LV EDVHG RQWKH3URSKHW¶VVWDWHPHQW ³7KH
GLYRUFHSURQRXQFHPHQWLVQRWYDOLGDWWKHWLPHRIPHQWDO@VHL]XUH´
6XQDQ$EX'DZXGYROSQR DQGDXWKHQWLFDWHGLQ6DKHHK 6XQDQ$EHH 'DDZRRGYRO
SQR
6DKLK$O%XNKDULYROSSQR DQG6DKLK0XVOLPYROSSQR
27. ‹ % L O D O 3 K L O L S V F R P
$IWHU WKH SURQRXQFHPHQW WKH GLYRUFHGRHVQRWFRPHLQWRHIIHFWXQWLOWKHZRPDQ
KDV KDG WKUHH VXEVHTXHQW PHQVWUXDOFFOHV7KHILUVWFFOHLVWRLQVXUHWKDWVKHLV
QRWSUHJQDQWDQGWKHVHFRQGWZRDUHIXUWKHURSSRUWXQLWLHVIRUUHFRQFLOLDWLRQ6KHLV
QRW VXSSRVHG WR OHDYH KHU KRPH DV LV FRPPRQ DPRQJ 0XVOLPV WRGD 7KH
KXVEDQG LV UHTXLUHG WR FRQWLQXHWRPDLQWDLQKHUXQWLOWKHZDLWLQJSHULRG¨LGGDK@
HQGV
,I D ZRPDQ LV SUHJQDQWDWWKHWLPHRIWKHSURQRXQFHPHQWWKH¨LGGDK LVXQWLOVKH
KDV GHOLYHUV 7KLVSULQFLSOHJLYHVWKHPD[LPXPDPRXQWRIWLPHIRUUHFRQFLOLDWLRQ
LQRUGHUIRUWKHZHOIDUHRIWKHFKLOGWREHUHIOHFWHGXSRQ
,Q WKH ILQDO DQDOVLV GLYRUFH SURFHHGLQJV DUH VRPHZKDW HDVLHU WKDQ LQ PDQ
:HVWHUQ FRXQWULHV D QRWDEOHH[FHSWLRQEHLQJWKHZHOONQRZQ ³0H[LFDQGLYRUFH´
ZKLFK FDQEHFRQFOXGHGLQDPDWWHURIPLQXWHV@7KHWKHRUEHLQJWKDWPDUULDJHLQ
,VODDP LV SULPDULO D FRQWUDFW DQGQRWDVDFUDPHQWDVRULJLQDOOSHUFHLYHGLQWKH
:HVW ZKHUH LW ZDV FRQVLGHUHG XQEUHDNDEOH DQG UHPDLQV DV VXFK DPRQJ
DWKROLFV@ RQVHTXHQWO LIWKHFRQWUDFWZDVHQWHUHGLQWRZLWKDYHUEDOVWDWHPHQW
RI ³, GR´DQGZLWQHVVHVLWVKRXOGEHGLVVROXEOHZLWKWKHVWDWHPHQW³,GRQ¶W´DQG
ZLWQHVVHV
',925($0$1¶65,*+7
0XVOLP ZRPHQ DUH RIWHQ SRUWUDHGDVEHLQJRSSUHVVHGGXHWRWKHLUEHLQJGHQLHGWKH
ULJKWWRGLYRUFH
7KH SURQRXQFHPHQWRIGLYRUFHWDODDT 28. LVSULPDULOWKHULJKWRIWKHKXVEDQGDVKH
LV LQ WKH SRVLWLRQ RI DXWKRULW LQ WKH IDPLO $OVR306FRQVLGHUDWLRQVDQGWKH
HPRWLRQDO QDWXUH RI ZRPHQFRXOGFDXVHDJUHDWHULQFLGHQFHVRIGLYRUFHLILWZHUH
SXWWKHKDQGVRIWKHZLYHVDVDQDXWRPDWLFULJKW
7KH ZLIH PD LQVWLWXWH GLYRUFH SURFHHGLQJV E PDNLQJKHUUHTXHVWWKURXJKWKH
FRXUW ,I WKH MXGJH 4DDGHH 29. VHHVMXVWFDXVHRUDUHDOQHHGRQKHUSDUWKHFDQDFW
RQ KHU EHKDOI DQG LQVWLWXWHWKHNKXOD¨GLYRUFHZKLFKKDVDZDLWLQJSHULRGRIRQO
RQHPHQVWUXDOFFOH
$ ZRPDQFDQREWDLQWKHULJKWWRSURQRXQFHGLYRUFHLILWLVPDGHDFRQGLWLRQLQKHU
PDUULDJH FRQWUDFW ZKLFK KHU KXVEDQG DJUHHV WR 6KHPDDOVRJDLQWKHULJKWE
UHTXHVWLQJ KHU KXVEDQG¶V SHUPLVVLRQ DW DQ SRLQW GXULQJ WKH PDUULDJH ,I
SHUPLVVLRQ LV JLYHQ VKH PD SURQRXQFH GLYRUFH DFFRUGLQJ WR WKH SUHYLRXVO
PHQWLRQHGFRQGLWLRQV
$/,021
:RPHQLQWKH:HVWKDYHWKHULJKWWRPDLQWHQDQFHDIWHUGLYRUFHEDVHGRQWKHYLHZWKDW
VKH ZDV DQ HTXDOSDUWQHU,IERWKSDUWQHUVZRUNWKHXVXDOOKDYHMRLQWDFFRXQWVDQG
SURSHUW LV XVXDOO SXUFKDVHG LQ ERWK WKHLU QDPHV RQVHTXHQWO DW WKH WLPH RI
GLYRUFH WKH KXVEDQG¶V VDYLQJV DQG SURSHUWLHVDUHGLYLGHGXSEWKHFRXUWVEHWZHHQ
KLPVHOI DQG KLVH[ZLIH,IKLVVDYLQJVDUHOLPLWHGKHEHFRPHVREOLJHGWRFRQWLQXHWR
PDLQWDLQ KHU XQWLO VKH UHPDUULHV 7KHUH KDYHHYHQEHHQFDVHVLQPRUHUHFHQWWLPHV
30. ‹ % L O D O 3 K L O L S V F R P
ZKHUHLQWKHZLIHZDVWKHPDLQEUHDGZLQQHUDQGDWGLYRUFHVKHEHFDPHREOLJHGWRJLYH
KHU KXVEDQG VRPH RI KHU ZHDOWK RU SD DOLPRQ (OL]DEHWK 7DORU DQG KHUWK
KXVEDQG@ 7KLV VVWHP KDV HYROYHG LQ DVRFLHWZKHUHPHQDQGZRPHQDUHHTXDOO
REOLJHGWRIHQGIRUWKHPVHOYHVIURPWKHLUWHHQV
$FFRUGLQJ WR ,VODDPLF ODZ PDLQWHQDQFH LVUHTXLUHGRQOGXULQJWKH¨LGGDK WKH
ZDLWLQJ SHULRG@ DV WKH ZRPDQ UHPDLQV D ZLIH XQWLO LW LV FRQFOXGHG2QFHWKH
¨LGGDK HQGVVKHLVQRORQJHUWKHPDQ¶VUHVSRQVLELOLW7KLVYLHZLVDSURGXFWRID
GLIIHUHQW YLHZ RIIDPLOUHVSRQVLELOLW,Q0XVOLPVRFLHWZRPHQDUHDOZDVWKH
UHVSRQVLELOLW RI PDOHV )URP ELUWK VKH LV KHU IDWKHU¶V UHVSRQVLELOLWXQWLOKHU
PDUULDJH ,I KHU IDWKHU GLHVVKHEHFRPHVWKHUHVSRQVLELOLWRIKHUJUDQGIDWKHURU
KHU XQFOH RU KHU EURWKHU XQWLO KHU PDUULDJH 'XULQJPDUULDJHVKHEHFRPHVWKH
UHVSRQVLELOLW RIKHUKXVEDQG,IWKHPDUULDJHHQGVLQGLYRUFHRUKHUKXVEDQGGLHV
VKH UHWXUQV WR WKHUHVSRQVLELOLWRIKHUIDPLO,IQRQHDUHDYDLODEOHVKHEHFRPHV
WKH UHVSRQVLELOLWRIKHUVRQDQGLIVKHKDVQRVRQVVKHEHFRPHVWKHUHVSRQVLELOLW
RI WKH KHDG RI VWDWH 7KH 3URSKHW U 31. ZDV UHSRUWHG WR KDYH VDLG ³, DP WKH
JXDUGLDQRIRQHZKRKDVQRJXDUGLDQ´
:20(1¶65,*+76%,57+21752/
,$%257,21
:HVWHUQ FLYLOL]DWLRQ KDV FRQFHGHGWKDWWKHZRPDQKDVDULJKWWRGRZLWKKHUERGDV
VKH SOHDVHV RQVHTXHQWO LI VKH EHFRPHV SUHJQDQWVKHFDQDERUWWKHIHWXVHYHQLI
KHU KXVEDQGRUERIULHQGREMHFWV7KHFRQVHTXHQFHLVWKDWRYHU
EDELHVDUH
DERUWHGHDFKHDULQWKH8QLWHG6WDWHVDORQH
7KH ,VODDPLF SRLQW RI YLHZLVWKDWWKHGHYHORSLQJFKLOGLVDGLVWLQFWDQGGLIIHUHQW
HQWLW IURP WKHPRWKHU6FLHQWLILFDOOVSHDNLQJHYHQKHUEORRGGRHVQRWPL[ZLWK
WKDW RI WKH FKLOG)RRGLVSDVVHGDFURVVPHPEUDQHV6KHLVPHUHODUHFHSWDFOHRI
OLIH 7KHWDNLQJRIOLIHLVIRUELGGHQXQOHVVIRUMXVWFDXVH(YHQKXQWLQJIRUVSRUWLV
IRUELGGHQLQ,VODDP
$OWKRXJK WKH IHWXV LV FRQVLGHUHG KXPDQ DIWHU WKH EHJLQQLQJRIWKHILIWKPRQWK
ZKHQ WKH DQJHO EORZVLQWKHVSLULWDERUWLRQSULRUWRWKHWK
PRQWKLVVWLOOWDNLQJD
OLIH ZLWKRXW MXVW FDXVH,IWKHSUHJQDQFWKUHDWHQVWKHPRWKHU¶VOLIHWKHIHWXVPD
EH DERUWHG6RPHVFKRODUVDOVRKROGWKDWLQFDVHVRIUDSHZKHUHWKHGHOLYHURIWKH
FKLOG ZLOO WKUHDWHQ WKH PHQWDO KHDOWK RI KHZRPDQDERUWLRQDWWKLVVWDJHLVDOVR
SHUPLWWHG
$IWHU WKH WK
PRQWK DERUWLRQ EHFRPHV PXUGHU$FULPHSXQLVKDEOHEGHDWKLQ
,VODDPLF ODZ 7KH :HVW VWUHVVHV ³KXPDQ ULJKWV´ DV DQ LQWHUQDWLRQDOSULQFLSOH
+RZHYHU LW LJQRUHV WKH ULJKW WR OLIH RI WKH WHQV RI PLOOLRQVRIKXPDQIHWXVHV
DERUWHGDQQXDOO+XPDQULJKWVLQ,VODDPEHJLQIURPFRQFHSWLRQ
$FFRUGLQJWR ILJXUHVRIWKH$*,$OOHQ*XWWPDFKHU ,QVWLWXWH 34. ‹ % L O D O 3 K L O L S V F R P
,,2175$(37,21
7KH FRQWUDFHSWLRQ PHWKRG RI ELUWK FRQWURO ZDV SUDFWLFHG GXULQJ WKHHUDRIWKH
3URSKHW ZLWKKLVSHUPLVVLRQ,WZDVNQRZQDV¨D]DO DQGLQYROYHGH[WUDFDWLRQ SULRU
WR HMDFXODWLRQ+RZHYHULWLVQRWIDYRUHGLQ,VODDPDVWKH3URSKHWU 35. HQFRXUDJHG
ODUJHIDPLOLHVVDLQJ³0DUUDQGEHSOHQWLIXOIRU,ZLOOEHSURXGRIRXUQXPEHUV
DPRQJWKHYDULRXVQDWLRQVRQWKH'DRI-XGJHPHQW´
,IWKHPHWKRGRIFRQWUDFHSWLRQLVFRQVLGHUHGKDUPIXOEWKHPHGLFDOSURIHVVLRQLWV
XVDJH ZRXOG EH IRUELGGHQLQ,VODDPLF/DZDFFRUGLQJWRWKH3URSKHW¶VVWDWHPHQW
³RXPDQHLWKHUKDUPRXUVHOIQRUKDUPRWKHUV´
7XEDO OLWLJDWLRQ YDVHFWRP DQG RWKHU IRUPV RI VWHULOL]DWLRQDUHQRWFRQVLGHUHG
OHJDO PHWKRGV RI FRQWUDFHSWLRQ LQ ,VODDP6XFKPHWKRGVDUHODUJHOLUUHYHUVLEOH
DQG DV VXFK FRQVWLWXWHKDUPWRRQHVHOI7KHUHDUHPDQFDVHVRIPHQDQGZRPHQ
ZKR KDYH XQGHUJRQH VXFK SURFHGXUHV IHHOLQJ WKH KDG DOUHDG KDG HQRXJK
FKLOGUHQ RQO KDYH WUDJHG VWULNH7KHLUFKLOGUHQGLHLQDFFLGHQWVRUWKHHQGXS
GLYRUFHGDQGZDQWWRKDYHFKLOGUHQZLWKWKHLUQHZSDUWQHUV
3238/$7,2121752/
7KH FRQFHSWRI³SRSXODWLRQH[SORVLRQ´RUWKH³SRSXODWLRQERPE´ZDVILUVWLQWURGXFHG
E 7KRPDV 5REHUW 0DOWKXV LQKLV(VVDRQ3RSXODWLRQLQ,WZDVEDVHGRQWKH
KSRWKHVLV WKDW WKH UDWHRIJURZWKRIKXPDQSRSXODWLRQH[FHHGHGWKHUDWHRILQFUHDVH
RI WKH FDSDFLW IRU IRRG SURGXFWLRQ0DOWKXV FRQFOXGHG WKDWWKHSRSXODWLRQZRXOG
HYHQWXDOO RXWVWULS IRRG UHVRXUFHV OHDGLQJ WRZRUOGZLGHIDPLQHRQDPDVVLYHVFDOH
+RZHYHU KHIDLOHGWRIRUHVHHWKHWHFKQRORJLFDOLQQRYDWLRQVZKLFKKXPDQVGHYHORSHG
WR LQFUHDVHIRRGSURGXFWLRQIDUEHRQGKLVFDOFXODWLRQV)XUWKHUPRUHKXPDQVRFFXS
VXFK D VPDOO SHUFHQWDJH RI WKH HDUWK¶V VXUIDFH WKH FKDQFHV RIRYHUFURZGLQJDQG
VFDUFLW RI IRRG DUH YLUWXDOO QLO0DOWKXV¶ WKHRU EHFDPH WKH EDVLV RI D ZRUOG
VWHULOL]DWLRQ SURJUDP SURPRWHG WKURXJK 81 DJHQFLHV ZKHUH SRRUZRPHQLQ7KLUG
:RUOGFRXQWULHVDUHRIIHUHGFDVKLQFHQWLYHVWREHVWHULOL]HG
7KH SUREOHP LQ 7KLUG:RUOGFRXQWULHVLVQRWWKHZRUOG¶VFDSDFLWWRSURGXFH
IRRG EXW PXFK PRUHKRZWKHIRRGWKDWLVSURGXFHGLVGLVWULEXWHG(DFKFLWL]HQRIWKH
)LUVW :RUOG FRQVXPHV WKH HTXLYDOHQW RI FLWL]HQV RIWKH7KLUG:RUOGHWWKH
ZHDOWK RI WKH)LUVW:RUOGLVPRVWOJDLQHGIURPH[SORLWLQJWKHUHVRXUFHVRIWKH7KLUG
:RUOG )XUWKHUPRUH WKH )LUVW :RUOG HQJDJHV LQ GHVWUXFWLYH HFRQRPLF SROLFLHV
ZKHUHLQ PLOOLRQV RI FKLFNVDUHGHVWURHGDQQXDOOLQWKH86$DORQHLQRUGHUWRNHHS
WKH SULFH RI FKLFNHQ DUWLILFLDOOKLJK/LNHZLVHWKRXVDQGVRIWRQVRIJUDLQPLONHWF
DUHNHSWRXWRIFLUFXODWLRQEVWRULQJWKHPLQJRYHUQPHQWIDFLOLWLHV
+,-$$%
7KH FRYHULQJ RI 0XVOLP ZRPHQ KDV EHFRPH RQH RI WKH LQWHUQDWLRQDOVPEROVRI
IHPDOHRSSUHVVLRQLQIHPLQLVWFLUFOHV
7KHUH DUH WZR PDMRU WUHQGV ZKLFK KDYH GHYHORSHG LQ WKH :HVW RYHUWKHSDVW
FHQWXU 2Q RQH KDQGWKHIDVKLRQLQGXVWUKDVVVWHPDWLFDOOXQFORWKHGZRPHQ
)URP EHLQJ IXOO FORWKHG IURP KHDG WR WRH DW WKHWXUQRIWKHFHQWXUVKHQRZ
36. ‹ % L O D O 3 K L O L S V F R P
ZHDUV YLUWXDOO QRWKLQJ ZKHQ WKH ZHDWKHU SHUPLWV 2QWKHRWKHUKDQGWKHUHKDV
EHHQ D GUDPDWLFULVHLQWKHUHSRUWHGLQFLGHQWVRIUDSH,QWKH86$LQWKHHDUOV
WKH UHSRUWHG LQFLGHQWV RI UDSH KDG FURVVHG WKH PDUN$QGUHVHDUFKHUV
HVWLPDWHG WKDW WKH DFWXDO QXPEHU ZDV EHWZHHQ WR WLPHVWKDWQXPEHUVLQFH
PRVW ZRPHQ DUH VKWRUHSRUWUDSHV7KHWZRWUHQGVDUHFORVHOLQWHUUHODWHG7KH
ZRPDQ LQ WKH :HVW KDVEHFRPHDVH[REMHFW ZLWKZKLFKWRVHOOSURGXFWVWKHUHE
SXPSLQJ XSWKHVH[XDOWHQVLRQRIWKHVRFLHW7KHRUYHWWHLVQRWVROGEDVHGRQLWV
SRZHUIXOHQJLQHRULWVVSHFLDOIHDWXUHV LQVWHDGWKHFDULVGLVSODHGZLWKDPRGHOLQ
D ELNLQL OLQJ RQ LW 6LPLODUO D QHZ *LOOHWWH UD]RUEODGHLVQRWVROGEJLYLQJ
GHWDLOV DERXWLWVQHZ WLWDQLXPEODGHV,QVWHDGDPDQLVVKRZQLQDGVVKDYLQJZLWK
D ZRPDQ¶V KDQG ZLWKORQJUHGILQJHUQDLOVFRLOHGDURXQGKROGKLV7KHVXEOLPLQDO
PHVVDJH EHLQJWDXJKWLVRXEXWKHFDURXJHWWKHJLUORXEXWKHUD]RURX
JHWWKHJLUO
,VODDP SUHVFULEHV WKH FRYHULQJ RI IHPDOHV IRUWZRSULPDUUHDVRQVVWDWHGLQWKH
4XU¶DDQ*RGVDVLQ6RRUDKDO$K]DDE 37. úȯš ŠÈÂú’çÂà ÀÈ¢û̮Ȣî óȯúŽ Ž¦Ž¥Š³ ú ÷ úŽ Šôß[Žû¾
³/HW WKHP FDVWWKHLURXWHUJDUPHQWVRYHUWKHLUERGL HV7KDWLVEHVWLQ
RUGHUWKDWWKHEHNQRZQDQGQRWKDUPHG´
7KH KLMDDE LV WRPDNHWKH0XVOLPZRPDQNQRZQLQWKHVRFLHWDVDYLUWXRXVDQG
KRQRUDEOH ZRPDQ +HU KLMDDE PDNHV WKHVWDWHPHQWWKDWVKHLVQRWDYDLODEOHDQG
QRW LQWHUHVWHG LQ DQDGYDQFHV0DQ0XVOLPZRPHQZKRKDYHHPLJUDWHGWRWKH
:HVW WDNH RI WKHLU VFDUYHV DQG RXWHU JDUPHQWV EHFDXVH WKH FODLP LW GUDZV
DWWHQWLRQ WR WKHPVHOYHV ,I WKH H[SRVH WKHLU KDLU DQG GUHVVLQPRGHVWZHVWHUQ
GUHVVHV QR RQH ZLOO ORRNDWWKHP,WLVWUXHWKDWWKHKLMDDE GRHVSURYLGHDOHYHORI
DQRQPLW DVPDQRIWKHZRPDQ¶VSKVLFDOGHWDLOVZLOOEHKLGGHQ+RZHYHUWKH
LQWHQW LV QRWWRSUHYHQWPHQIURPORRNLQJ:KHQPHQVHHDQXQLQKHUKDELWIXOO
FRYHUHG OLNHD0XVOLPZRPDQLQIXOOKLMDDEWKHZLOOWXUQWKHLUKHDGVDQGVWDUHDW
KHU 6LPLODUO ZKHQ WKH VHH D ZRPDQ ZDONLQJ LQDELNLQLWKHZLOODOVRWXUQ
WKHLU KHDGV DQG VWDUH +RZHYHU WKH ILUVWVWDUHLVGLIIHUHQWIURPWKHVHFRQG7KH
ILUVW LVRXWRIFXULRVLWKDYLQJVHHQVRPHWKLQJXQXVXDOZKLOHWKHVHFRQGLVRXWRI
OXVW DQG DURXVHG VHQVXDOLW 7KHFRQVHTXHQFHRIWKHVHFRQGLVWKHPROHVWDWLRQRI
ZRPHQRQDQDWLRQDOVFDOHZKLOHWKHILUVWFDXVHVUHVSHFW
7KH SHQDOW LQ WKH ,VODDPLF VWDWH LV YHU VHYHUH IRU UDSH LQ RUGHU WR IXUWKHU
JXDUDQWHH SURWHFWLRQIRUIHPDOHV:KHUHZHDSRQVRIDQWSHDUHXVHGLQWKHUDSH
WKHSXQLVKPHQWLVGHDWK7KHGHDWKSHQDOWKDVDOVREHHQLQWURGXFHGLQ3KLOLSSLQHV
DQG LW LV EHLQJ FDOOHGIRULQ,QGLDFXUUHQWO+RZHYHUWRDOORZZRPHQWRH[SRVH
WKHPVHOYHV DQG WKHQ NLOO WKRVHZKRUHDFWXQGXOLVQRWSUDFWLFDO7KHODZVKRXOG
EH EDODQFHG 7KH FLUFXPVWDQFHV ZKLFK PLJKW HQFRXUDJH UDSH VKRXOG ILUVWEH
UHPRYHGIURPWKHVRFLHW WKHQDVHYHUHSHQDOWPDEHHQDFWHG
,WPDEHVDLGWKDWHYHQLQVRFLHWLHVZKHUHZRPHQDUHIXOOFRYHUHGWKHPDVWLOO
EH DSSURDFKHG DQG PROHVWHG +RZHYHU LI WKH YDVW PDMRULW RI WKRVHZKRDUH
PROHVWHGDUHQRWSURSHUOFRYHUHGWKHSULQFLSOHRISURWHFWLRQVWLOODSSOLHV(YHQLQ
WKH VRFLHW RI WKH 3URSKHW RQH WKRXVDQG IRXUKXQGUHGHDUVDJRVRPHZRPHQ
ZHUHPROHVWHGDQGUDSHG
38. ‹ % L O D O 3 K L O L S V F R P
6RPH SHRSOH TXHVWLRQ WKH LPSRVLWLRQ RIKLMDDE E WKH ,VODDPLF VWDWH ,V LWD
SHUVRQDO FKRLFHRIZRPHQRUDOHJDOREOLJDWLRQ,WLVWKHUHVSRQVLELOLWRIWKHKHDG
RI HYHU IDPLO WR LQVXUH WKDW WKH ZRPHQRIKLVKRXVHKROGOHDYHWKHKRPHLQD
OHJDOO DFFHSWDEOH VWDWH RI GUHVV 7KH VWDWHLVIXUWKHUUHVSRQVLEOHWRSUHYHQWDQ
ZRPHQZKRDSSHDULQSXEOLFLQDVWDWHRIXQGUHVVLQRUGHUWRSURWHFWSXEOLFGLJQLW
DQG PRUDOLW7KH:HVWKDVVHWLWVRZQOLPLWVIRUGUHVV ZKLFKFKDQJHDFFRUGLQJWR
WKHPRRGRIVRFLHW$WRQHSRLQWLQWLPHVWULSMRLQWVZHUHLOOHJDO1RZPDQEDUV
KDYH WRSOHVV ZDLWUHVVHV DQG GDQFHUV ,QPRVWVWDWHVDZRPDQPDQRWDSSHDULQ
SXEOLF WRSOHVV +RZHYHU DZRPDQUHFHQWOFRQWHVWHGWKHODZLQ)ORULGDDQGZRQ
KHU FDVH RPSOHWH QXGLW UHPDLQV SXEOLF FULPH WKURXJKRXW WKH :HVWWKRXJK
QXGLVW FDPSV DQG QXGLVWEHDFKHVKDYHVSUXQJXSLQGLIIHUHQWORFDWLRQVLQ(XURSH
DQG$PHULFD
7KHUH DUH FRQGLWLRQV ZKLFK PXVWEHIXOILOOHGIRUWKHKLMDDE WREHDFFHSWDEOHD 41. ,W
VKRXOGQRWEHFRORUIXODQGRUQDPHQWHGVRDVWRDWWUDFWVH[XDODGPLUDWLRQ
:KHUH WKH KLMDDE KDV EHFRPH DFXOWXUDOQRUPDQGZRPHQFRPSORXWRIIHDURI
HPEDUUDVVPHQW LW ZLOO QRWEHZRUQSURSHUO,WPDEHFRPHWUDQVSDUHQWRUZRUQ
WLJKW H[SRVLQJ WKH FXUYHV RI WKHERGRULWPDEHFRPHVRRUQDPHQWHGDVWREH
DWWUDFWLYH E LWVHOI ,W PD EH VKRUW VRDVWRH[SRVHWKHGUHVVXQGHUQHDWKRUWKH
IDFH PD EH FRYHUHG DQG WKH IURQW RI WKH KDLUH[SRVHG6XFKSUDFWLFHVDUHWKH
UHVXOW RI ZRPHQ ZHDULQJKLMDDE IRUWKHZURQJUHDVRQV7KHVKRXOGEHHGXFDWHG
WRUHDOL]HWKDWLWLVIRUWKHLUEHQHILWDQGIRUWKHEHQHILWRIWKHVRFLHW
,1+(5,7$1(
7KHXQHTXDOGLYLVLRQRILQKHULWDQFHEHWZHHQPHQDQGZRPDQLVVRPHWLPHVFLWHGDVDQ
H[DPSOH,VODDP¶VRSSUHVVLRQRIZRPHQ
%HIRUH ORRNLQJDWWKHGLYLVLRQRILQKHULWDQFHLQ,VODDPZLWKUHJDUGWRZRPHQRQH
QHHGVWRORRNDW:HVWHUQLQKHULWDQFHODZV7KHULJKWIRUZRPHQWRLQKHULWDQGRZQ
SURSHUW ZDV RQOJLYHQWRZRPHQLQWKH:HVWDWWKHWXUQRIWKHFHQWXUZKHUHDV
WKDW ULJKW ZDV JLYHQ WR ZRPHQ LQ ,VODDP HDUVDJR)XUWKHUPRUHLQWKH
:HVW D SHUVRQ PD OHJDOO ZULWHDZLOOJLYLQJDOORIWKHLUZHDOWKWRWKHLUGRJRU
FDW DQGH[FOXGHWKHLUZLIHFKLOGUHQDQGRWKHUUHODWLYHV,QWKH,VODDPLFVVWHPWKH
ULJKWV RI ZLYHV FKLOGUHQDQGUHODWLYHVWRLQKHULWDUHSURWHFWHG6HWSRUWLRQVRIWKH
LQKHULWDQFH WR EH JLYHQ WRWKHPDUHLGHQWLILHGLQWKH4XU¶DDQ1RRQHFDQZULWHD
ZLOO DQG FDQFHORUPRGLIZKDWLVGXHWRWKHP$ZLOOFDQEHZULWWHQWRJLYHXSWR
DPD[LPXPRIRQHWKLUGWRWKRVHZKRZRXOGQRWLQKHULWEODZ$VWROHDYLQJHYHQ
WKH WKLUG RI RQH¶V ZHDOWKWRDQLPDOVWKH0XVOLP6WDWHFRXOGVWHSLQRQEHKDOIRI
WKH LQKHULWRUVDQGFDQFHOVXFKDZLOODVLWREYLRXVOLQGLFDWHVVRPHIRUPRIPHQWDO
GLVRUGHU7KHWKLUGZRXOGWKHQEHGLYLGHGXSDPRQJWKHQDWXUDOLQKHULWRUV
,Q ,VODDPLFVRFLHWPHQDUHUHVSRQVLEOHIRUWKHPDLQWHQDQFHZRPHQ)RUH[DPSOH
LI D VRQ D GDXJKWHU DQG D PRWKHU LQKHULW WKH VRQ DOVR KDV WKH DGGLWLRQDO
42. ‹ % L O D O 3 K L O L S V F R P
UHVSRQVLELOLW RI ORRNLQJ DIWHU KLVVLVWHUDQGKLVPRWKHURQVHTXHQWOEDVHGRQ
WKHPDOHUROH,VODDPLF/DZDZDUGVWKHVRQWZLFHWKHSRUWLRQRIWKHGDXJKWHU
+RZHYHU WKH WZR WR RQH GLYLVLRQ LV QRW DSSOLHG LQDOOFDVHV)RUH[DPSOHWKH
4XU¶DDQ VWDWHV 44. ³*HWWZRRIRXUPHQDV
ZLWQHVVHV %XW LI WZR PHQDUHQRW DYDLODEOHWKHQJHWDPDQDQGWZRZRPHQ
DJUHHDEOH WR RX DV ZLWQHVVHV VR WKDW LI RQHRIWKHPPDNHVDPLVWDNHWKH
RWKHU FDQ UHPLQGKHU´+RZHYHUWKLVSULQFLSOHLVQRWDSSOLHGLQDOOFDVHV7KLV
LV VSHFLILF WR EXVLQHVV FRQWUDFWV DV WKH EHJLQQLQJ RI WKHYHUVHLQGLFDWHV6LQFH
ZRPHQLQ0XVOLPVRFLHWJHQHUDOOVWDDWKRPHDQGPHQZRUNRXWVLGHWKHKRPH
WKH WHQG QRW WR EH WKDW IDPLOLDU ZLWK EXVLQHVV GHDOLQJVDQGDVVXFKWKHPD
IRUJHWVRPHRIWKHGHWDLOV±DVWKHYHUVHH[SODLQV
7KLVFRQVLGHUDWLRQPDVHHPTXDLQWLQWKH:HVWZKHUHZRPHQKDYHEHHQDSDUWRI
WKH ZRUN IRUFH IRU PXFKRIWKHWK
FHQWXU:RPHQHQWHUHGWKHZRUNIRUFHDVD
SURGXFW RI WKHQHHGIRUWKHPLQWKHVRFLHWDQGWKHPXQLWLRQV IDFWRULHVGXULQJWKH
WZR :RUOG :DUV 0LOOLRQV RIPHQLQWKHLUSULPHZHUHVHQWRYHUVHDVWRILJKWDQG
WKHLU MREVKDGWREHILOOHGEZRPHQ2QFHWKHZDUVHQGHGPDQUHIXVHGWRUHWXUQ
WR WKHLU KRPHV DQG WKH IHPLQLVW PRYHPHQWZDVERUQ(YHQWXDOOPDQZRPHQ
FDPH WRORRNDWIXOILOOPHQWLQWKHZRUNSODFHDQGQRWDWKRPH(YHQLIKHUMREZDV
RQO WKDW RI DVHFUHWDUKDUDVVHGEKHUERVVVPLOLQJVKHHSLVKOWRNHHSKHUMRE
VKH IHOW LWZDVEHWWHUWKDQEHLQJVWXFNDWKRPHFRRNLQJZDVKLQJGLVKHVFKDQJLQJ
GLDSHUVDQGSUHSDULQJERWWOHVRIPLON0DQ:HVWHUQZRPHQEHFDPHIDPLOLDUZLWK
EXVLQHVV GHDOLQJV VR WKH SUHYLRXVO PHQWLRQHG FRQVLGHUDWLRQV ZRXOG VHHPWR
WKHP LUUHOHYDQW +RZHYHU HYHQ LQ $PHULFD WKH YDVW PDMRULW RI ZRPHQ DUH
KRXVHZLYHV VSHQGLQJ PRVW RI WKHLU OLYHV LQ WKHLU KRPHVZKLOHWKHLUKXVEDQGV
ZRUNDQGEULQJKRPHWKHEUHDG
,Q DUHDV RI IHPDOH H[SHUWLVH WKH ZLWQHVV RI D VLQJOH ZRPDQLVVXIILFLHQW)RU
H[DPSOH ZKHQ µ8TEDK LEQ DO+DDULWK FRPSODLQHG WR WKH3URSKHWWKDWDIRUPHU
VODYH ZRPDQ LQIRUPHG KLP WKDW VKH KDG ZHWQXUVHGERWKKLPVHOIDQGKLVZLIH
8PP DKDD ELQW $EHH ,KDDEKHUHSOLHG³Šò 뾊ëÈÂæŠï +RZFDQRXREMHFWZKHQLW
KDV DOUHDG EHHQ VWDWHG´
$FFRUGLQJWR,VODDPLFODZWKRVHZKRVXFNOHGIURP
WKHVDPHEUHDVWEHIRUHWKHDJHRIWZREHFRPHVXFNOLQJEURWKHUVDQGVLVWHUVDQGDUH
QRW DOORZHGWRPDUURQVHTXHQWOWKHLUPDUULDJHZDVDQQXOOHGRQWKHEDVLVRID
VLQJOHZRPDQ¶VWHVWLPRQ
7KHPRWKHUZRXOGUHFHLYHWK
48. ‹ % L O D O 3 K L O L S V F R P
6(3$5$7(('8$7,21
RHGXFDWLRQLVWDNHQIRUJUDQWHGDVWKHEHVWHGXFDWLRQDOPRGHOEWKH:HVW+RZHYHU
VHJUHJDWHG HGXFDWLRQ ZDV WKH LQWHUQDWLRQDO VWDQGDUG EHIRUH WKHWXUQRIWKHFHQWXU
RHGXFDWLRQZDVDGRSWHGPRUHZLGHODQGUDSLGOLQWKH8QLWHG6WDWHVWKDQLQ(XURSH
EHFDXVH RI WUDGLWLRQ ,W EHFDPH D WUHQG LQ WKH 86 ZLWK WKH H[SDQVLRQ RI SXEOLF
HGXFDWLRQ EHWZHHQ DQG 7KH JUHDW GLVWDQFH EHWZHHQ WKHVFKRROVLQWKH
:HVWHUQ UHJLRQ RI WKH 8QLWHG 6WDWHV DQG WKH VPDOO QXPEHU RI SXSLOV FDXVHGWKH
HOHPHQWDU VFKRROVWRDGPLWJLUOV$IWHUWKHUHFRJQLWLRQRISXEOLFHGXFDWLRQIROORZLQJ
WKH LYLO :DU FRHGXFDWLRQ JUDGXDOO VSUHDG WRWKHVHFRQGDUVFKRROV7KHVFKRROV
ZHUH DWILUVW³FRPPRQVFKRROV´LQZKLFKERVDQGJLUOVVDWLQVHSDUDWHVHFWLRQVRIWKH
VDPH FODVVURRP% FRHGXFDWLRQKDGEHFRPHYLUWXDOOXQLYHUVDOLQWKH86$%
WKH PDMRULW RI KLJK VFKRROV DOVR EHFDPH FRHGXFDWLRQDO RPPRQ VFKRROV
EHFDPH DQ DFFHSWHG SUDFWLFH LQ%ULWDLQDQG*HUPDQLQWKHHDUOWK
FHQWXU6LQFH
DOPRVW DOO VLQJOHVH[FROOHJHVLQWKH86KDYHDGRSWHGWKHLGHDRIFRHGXFDWLRQ
7KHRQOLQVWLWXWLRQVZKLFKUHPDLQVLQJOHVH[ DUHKLVWRULFZRPHQ¶VVFKRROVDQGPHQ¶V
VHPLQDULHV
0HQ DQG ZRPHQ DUH UDLVHG VHSDUDWHO LQ 0XVOLP VRFLHW LQ RUGHU WR SURWHFW
IHPDOHV IURP DEXVH DQG KDUP (GXFDWLRQDO LQVWLWXWLRQVUHIOHFWWKHYDOXHVRIWKH
VRFLHW DV VXFK LQD0XVOLPVWDWH FKLOGUHQZLOOEHVHSDUDWHGLQVFKRROVIURPWKH
DJH RI WHQ 3URSKHW 0XKDPPDGVDLG³7HDFKRXUFKLOGUHQIRUPDOSUDHUDWWKH
DJH RI VHYHQ DQG VSDQN WKHP IRULWDWWKHDJHRIWHQ$QGVHSDUDWHWKHPLQWKHLU
EHGV´
7KH VHSDUDWLRQ LVWRSUHYHQWVH[XDODEXVHDVFKLOGUHQEHJDQWRGHYHORSD
FRQVFLRXVQHVV DURXQGWKHDJHRIWHQ5HFHQWOLQ(QJODQGDQHOHYHQHDUROGJLUO
ZDVSXWRQWKHOLVWRIVH[RIIHQGHUVIRUDEXVLQJVRPH DQG HDUROGERVDQGLQ
)ORULGD DQ HOHYHQ HDUROGERZDVDFFXVHGRIPROHVWLQJKLVRXQJHUVLVWHULQD
PXFKSXEOLFL]HGFDVH
5HFHQW H[SHULPHQWV EWHDFKHUVLQ*HRUJH'L[RQ6FKRRO%LUPLQJKDP8.KDYH
VKRZQ WKDWJLUOVOHDUQEHWWHUZKHQHGXFDWHGVHSDUDWHOIURPERVRQVHTXHQWOD
QXPEHU RI :HVWHUQ HGXFDWRUV KDYH UHFHQWO FDOOHG IRUWKHUHYLYDORIVLQJOHVH[
VFKRROV -XOLDQ 6RXWHU VHQLRU GLUHFWRU GHSXW KHDG 49. DW*HRUJH'L[RQVFKRROLV
FRQYLQFHG RI WKHDGYDQWDJHVRIVHJUHJDWLRQOLVWLQJWKHEHQHILWVREVHUYHGVRIDUDV
³EHWWHU FRQFHQWUDWLRQ LQ FODVV EHWWHU EHKDYLRU KLJKHU DFKLHYHPHQW LPSURYHG
WHDFKHU DWWHQWLRQ´
6LQFH WKH VL[WLHV FRHGXFDWLRQ KDV EHHQ VHHQ DV WKH
SURJUHVVLYH HQOLJKWHQHG FKRLFH +RZHYHULQWKHVHYHQWLHVDQGHLJKWLHVIHPLQLVW
HGXFDWRUV EHJDQ WR GUDZ DWWHQWLRQ WRWKHTXHVWLRQRIJLUOV¶XQGHUDFKLHYHPHQWLQ
DUHDV VXFK DV SKVLFV DQG PDWK¶VLWZDVQRWLFHGWKDWWKHLUH[DPUHVXOWVZHUH
PXFK EHWWHU LQ VLQJOHVH[ VFKRROV $ MRLQW UHSRUW LQ E WKH VFKRROV
LQVSHFWRUV 2IVWHG DQG WKH(TXDO2SSRUWXQLWLHVRPPLVVLRQ7KH*HQGHU'LYLGH
VWDWHV³*LUOV¶VFKRROVDUHJHQHUDOOIRXQGWRSHUIRUPEHVW´
1RW RQO VKRXOG WKH VHSDUDWLRQ EH PDLQWDLQHGLQ,VODDPLFLQVWLWXWLRQVRIKLJKHU
OHDUQLQJ EXW HYHQ WKH FRXUVHV RIIHUHG QHHG WR EH WDLORUHG DFFRUGLQJ WR WKH
7KH6WDWHVPDQ YRO,VVXHS
,ELG
50. ‹ % L O D O 3 K L O L S V F R P
VRFLHW¶V QHHGV RXQJ PHQ DQG ZRPHQ VKRXOG EHFKDQQHOHGLQWRDSSURSULDWH
VWUHDPV RI HGXFDWLRQ )RU H[DPSOH RXQJ PHQ VKRXOG QRW EH HQFRXUDJHG WR
VSHFLDOL]H LQJQHFRORJ7KDWILHOGVKRXOGEHOHIWIRUZRPHQWRVSHFLDOL]HLQ,QD
VRFLHW ZKLFK KROGVFKDVWLWDQGYLUWXHDWDSUHPLXPLWPDNHVQRVHQVHWRKDYHD
PDQ VSHQG KLV ZRUNLQJ GD ORRNLQJ DW DQG WRXFKLQJWKHSULYDWHSDUWVRIQDNHG
IHPDOHV 6LPLODUO LWZRXOGEHSRLQWOHVVIRUDIHPDOHWRVSHFLDOL]HLQPDOHXULQDU
WUDFWLQIHFWLRQVLQXURORJZKLFKZRXOGUHTXLUHKHUWRORRNDWPDOHJHQLWDOLD
5,0,1$/-867,(
0XVOLP DSSOLFDWLRQ RI FULPLQDOODZKDVRIWHQEHHQGHVFULEHGDV0HGLHYDO'UDFRQLDQ
ODZV7KHDSSOLFDWLRQRIFDSLWDOSXQLVKPHQWKDVEHHQEDQQHGEWKH81DQGWKH(
3XQLVKPHQW LQ :HVWHUQ SHQRORJ VHUYHG WKUHH IXQFWLRQV L 55. 5HIRUPDWLRQ
,Q 7KH 5HSRUW RI WKH 'HSDUWPHQWDO RPPLWWHH RQ RUSRUDO 3XQLVKPHQW LQ
(QJODQG WKH FRPPLWWHH¶V XQDQLPRXV RSLQLRQ ZDV WKDW ³FRUSRUDO
SXQLVKPHQW ZDV RI QR YDOXHDVDGHWHUUHQWDQGVKRXOGEHDEROLVKHG´,QLQ
WKH 86$ -XVWLFH +XJR %ODFN ZURWH ³5HWULEXWLRQ LV QR ORQJHU WKH GRPLQDQW
REMHFWLYH RI FULPLQDO ODZ 5HIRUPDWLRQ DQG UHKDELOLWDWLRQ RI RIIHQGHUV KDYH
EHFRPH LPSRUWDQW JRDOV RI FULPLQDO MXULVSUXGHQFH´ ,Q-XVWLFH7KXUJRRG
0DUVKDOO ZURWH ³3XQLVKPHQW IRU WKHVDNHRIUHWULEXWLRQLVQRWSHUPLVVLEOHXQGHU
WKH (LJKWK $PHQGPHQW´ ,Q WKH VDPHHDUDOLIRUQLD¶VFDSLWDOSXQLVKPHQWODZ
ZDV GHFODUHG XQFRQVWLWXWLRQDO
)RU VRPH FULPLQRORJLVWV ³UHIRUPDWLRQ´ KDV
EHFRPH VQRQPRXV ZLWK ³FXUH´ 7KH FULPLQDO LV QRORQJHUD³EDGPDQ´EXWD
³VLFN PDQ´
$ FRQYLFWQHHGVWUHDWPHQW+HLVJHQXLQHOLOOSHUKDSVSKVLFDOO
DOPRVWFHUWDLQOPHQWDOODQGSVFKLDWULFDOO
7KH $EROLWLRQ RI WKH'HDWK3HQDOW$FWRI FDQFHOOHGFDSLWDOSXQLVKPHQWIRU
PXUGHU 7KH +RPH 6HFUHWDU DQQRXQFHG RQQG
$SULO WKDW FRQYLFWHG
PXUGHUHUV KDG EHHQ UHOHDVHG IURP SULVRQVLQFHPRVWRIWKHPKDYLQJRQO
VHUYHG QLQH HDUV RU OHVV RI WKHLUVWDWXWRUOLIHVHQWHQFH2QOILYHVHUYHG RU
PRUH HDUV QLQH VHUYHG RUOHVVDQGRQHFRPSOHWHGRQO PRQWKV
7KHVHDUH
QRW FDVHV RI PLVWDNHQ UXOLQJ ZKLFK ZDV FRUUHFWHG 7KHVH ZHUH FRQYLFWHG
PXUGHUHUV EHLQJ OHW RXWRQWKHSXEOLFGXHWRWKHLUJRRGEHKDYLRULQSULVRQ0DQ
RIWKHPNLOOHGDJDLQRQOWREHVHQWHQFHGIRUDIHZPRUHHDUV
:HVWHUQ SHQRORJLVWV KDYH DGPLWWHG WKDW WKH SHQDO VVWHP KDV IDLOHGXWWHUOLQ
UHIRUPLQJDQGUHKDELOLWDWLQJFULPLQDOV3HWWFULPLQDOVHQWHUWKHVVWHPDQGH[LWDV
ZHOO WUDLQHGKDUGHQHGFULPLQDOV6RFLHWHQGVXSSDLQJIRUWKHFULPHVFRPPLWWHG
DJDLQVWLWEEHLQJREOLJHGWRSURYLGHIRRGFORWKLQJDQGVKHOWHUIRUFULPLQDOV
3XQLVKPHQWLQ,VODPLF/DZ0XKDPPDG6DHHG (O$ZDS
ULPHDQGWKH3HQDO6VWHP+RZDUG-RQHVUG
(G/RQGRQS
,ELG S
56. ‹ % L O D O 3 K L O L S V F R P
,Q WKH ,VODDPLF VVWHP SXQLVKPHQWV DUH SODFHGLQWKUHHFDWHJRULHVL 64. 7D¨]HHU 'LVFUHWLRQDU
'XULQJ WKH2WWRPDQDGPLQLVWUDWLRQRIWKH$UDELDQSHQLQVXOD KXGRRG SXQLVKPHQWV
ZHUH QRW DSSOLHG ,Q WKH ODWH¶VWKH6DXGLUHJLPHUHLQWURGXFHGWKHPDQGWHK
FULPH UDWH IHOO QRWLFHDEO 7KH KDGG IRU WKHIWXSWR ZDVQRWLPSOHPHQWHG
PRUH WKDQ WZLFH SHU HDU 6L[ PRQWKVDIWHUWKHLQWURGXFWLRQRI6KDUHH¨DK LQWKH
6XGDQ FULPH GHFUHDVHG E PRUH WKDQ GHVSLWH 3UHVLGHQW-DIIDU 1XPHLUL¶V
UHOHDVH RI SULVRQHUV DWWKHWLPHRIGHFUHHLQJ,VODPLFODZEHFDXVHWKHZHUH
QRW VHQWHQFHGXQGHUWKH6KDUHH¨DK6LQFHWKHLQWURGXFWLRQRI,VODDPLFODZLQ,UDQ
FULPHKDVGURSSHGVLJQLILFDQWO
5HWULEXWLRQ LV REYLRXV LQ KXGRRG SXQLVKPHQWV IURP WKHLU VHYHULW DQG WKH
SURKLELWLRQ RI PHGLDWLRQ $QG UHWDOLDWLRQ LQTLVDDV DV $OODDKVDLG 65. ³,Q
UHWDOLDWRU SXQLVKPHQW WKHUH LV OLIH IRU RXRSHRSOHRIXQGHUVWDQGLQJLQRUGHU
WKDW RX IHDU *RG´ *RRGKHDUW VWDWHGLQ³5HWULEXWLRQLQSXQLVKPHQWLVDQ
H[SUHVVLRQ RI WKH FRPPXQLW¶VGLVDSSURYDORIFULPHDQGLIWKLVUHWULEXWLRQLVQRW
JLYHQ UHFRJQLWLRQ WKHQ WKH GLVDSSURYDO PD DOVRGLVDSSHDU´
7KHHOHPHQWRI
UHWULEXWLRQ ± YHQJHDQFH LI RX ZLOO ± GRHV QRW PDNH SXQLVKPHQW FUXHO DQG
XQXVXDO LW PDNHV SXQLVKPHQW LQWHOOLJLEOH /HR 3DJHZURWH³/DZH[LVWVIRUWKH
SURWHFWLRQRIWKHFRPPXQLW,WLVQRWQHFHVVDUWRVKRZWKDWFDSLWDOSXQLVKPHQWLV
DQDEVROXWHSUHYHQWDWLYHRIPXUGHURUHYHQWKDWLWLVWKHRQOGHWHUUHQW,ILWFDQEH
VKRZQ WKDW LW LV PRUH HIIHFWLYH DVDGHWHUUHQWWKDQDQRWKHUSXQLVKPHQWWKHQ,
VKDOO EH VDWLVILHG WKDW LW VKRXOGEHUHWDLQHG7RKROGRWKHUZLVHLVVXUHOWRIRUJHW
WKH LQQRFHQW YLFWLPV RI PXUGHU LQWKHLQWHUHVWRIWKHLUPXUGHUHUV$QG,KDYHQR
GRXEWDWDOOWKDWIHDURIWKHJDOORZVLVWKHPRVWSRZHUIXORIDOOGHWHUUHQWV´
085'(5
,Q WKH :HVW KRPLFLGH LV D FULPH LQ ZKLFK WKH VWDWHPXVWLQWHUYHQHDQGDSSO
SXQLVKPHQWRQVHTXHQWOSXQLVKPHQWIRUKRPLFLGHLQWKH:HVWEHFDPHDUELWUDU
DQG ODFNLQJDQXQLIRUPLW6WXGLHVLQWKHVVKRZHGWKDWEODFN$PHULFDQVZHUH
VHQWHQFHG WR GHDWKIRUFULPHVZKLFKZKLWH$PHULFDQV ZHUHRQO³GRLQJWLPH´,Q
,VODDP KRPLFLGH LV FRQVLGHUHGDFLYLOZURQJWRUW 72. ‹ % L O D O 3 K L O L S V F R P
ULPHV RI SDVVLRQ ZLOO QRW EHHOLPLQDWHGEWKHGHDWKSHQDOW3XEOLFH[HFXWLRQ
GLVFRXUDJHV SUHPHGLWDWHG PXUGHU:KHUHDSHUVRQNQRZVWKDWKHRUVKHZLOORQO
KDYH WRIDFHOLIHLPSULVRQPHQWHDUV 73. IRUPXUGHULIFDXJKWWKHZLOOEHPRUH
ZLOOLQJ WRWDNHWKHFKDQFH%XWZKHUHWKHFRQVHTXHQFHLVSRVVLEOHGHDWKWKHZLOO
WKLQN WZLFHRUWKULFHEHIRUHJRLQJDKHDGZLWKDPXUGHU,QWKH:HVWWKHH[HFXWLRQ
RI PXUGHUHUV WDNHV SODFH LQ SULVRQV LW LV RQOYLHZHGEDIHZPHPEHUVRIWKH
SUHVV SULVRQ RIILFLDOV DQG WKH IDPLO RI WKH PXUGHUHU DQG WKH PXUGHUHG
RQVHTXHQWO IRU WKH VRFLHW DW ODUJHLWLVRQODVWDWLVWLF7KHH[HFXWLRQKDVQR
SHUVRQDO LPSDFW RQ WKH LQGLYLGXDOPHPEHUVRIVRFLHW,QWKH0XVOLPVWDWHODUJH
VHJPHQWV RI WKHVRFLHWDUHLQYLWHGWRYLHZWKHH[HFXWLRQVRWKHZLOOFRQYHLWWR
WKHUHVWRIWKHVRFLHW
7+()7
7KH PHGLD RIWHQ UHIHUV WKH ³KDFNLQJ RII´ RIWKHWKLHI¶VKDQGLQRUGHUWRSRUWUDWKH
PRVWJUXHVRPHSLFWXUHSRVVLEOHRIWKHLPSOHPHQWDWLRQRI,VODDPLFFULPLQDOODZ
7KH 4XU¶DDQ SUHVFULEHV DPSXWDWLRQ LQ KDSWHU ³$VIRUWKLHYHVERWKPDOH
DQG IHPDOH FXW RII WKHLU KDQGVDVUHFRPSHQVHIRUWKHLUGHHGVDQGDQH[HPSODU
SXQLVKPHQW IURP$OODDK´+RZHYHUWKHUHDUHFRQGLWLRQVXQGHUZKLFKWKLVODZLV
WREHDSSOLHG
7KHODZRIDPSXWDWLRQLVQRWDSSOLHGXQGHUWKHIROORZLQJFLUFXPVWDQFHV
L 74. 'XULQJ WLPHV RI IDPLQH RU VWDUYDWLRQ ,I D SHUVRQ VWHDOV IRRG WR SUHYHQW
VWDUYDWLRQ KLV KDQG ZLOO QRW EH DPSXWDWHG,IKHVWHDOVSURSHUWEHFDXVHRIWKH
RSSRUWXQLW LQ D WLPH RI QDWXUDOGLVDVWHUKHLVDFULPLQDOZKRVHKDQGVKRXOGEH
UHPRYHG
LL 76. ,I WKH SURSHUW WDNHQ ZDVSXEOLFSURSHUW )RUH[DPSOHUXJVRUILWWLQJVLQD
PRVTXHRUVHDWVIURPSXEOLFWUDQVSRUW
LY 78. ,I WKH LWHP VWROHQ ZDV QRW LQ LWV SURSHU SODFH LHLWZDVDFFLGHQWDOOOHIW
VRPHZKHUH DQGWKXVEHFDPHWHPSWDWLRQ 79. 7KHSURIHVVLRQDOSLFNSRFNHWRUEXUJODU
KDYHPDGHWKHIWDZDRIOLIH
7KH ULJKW KDQG LV VXUJLFDOO UHPRYHG DW WKHZULVWDQGQRWKDFNHGRIIEDPHDW
FOHDYHU RU D FKDLQVDZDVPHGLDUHSRUWVVHHPWRLPSO7KHOHIWIRRWDWWKHDQNOH
LV UHPRYHG RQ WKHVHFRQGRFFDVLRQDQGRQWKHWKLUGRFFDVLRQKHPDEHH[HFXWHG
DVLQFRUULJLEOH7KLVLVODZLVLPSOHPHQWHGSXEOLFOIRUWKHSXUSRVHRIGHWHUUHQFH
$'8/7(5$1' )251,$7,21
7KHVH DFWV KDYH EHHQ GHFULPLQDOL]HG LQWKH:HVWGXHWRWKHUDSLGOFKDQJLQJPRUDO
VWDQGDUGV RQVHTXHQWOFULWLFVRI,VODDPRIWHQSRLQWWKHILQJHURIEODPHDWWKHVHYHUH
SXQLVKPHQWVDVVLJQHGWRWKHP
7KH ODZV UHJDUGLQJ DGXOWHU DQGIRUQLFDWLRQDUHSXUHOEDVHGRQPRUDOLW,WLVD
SDUW RI D VVWHP LQ ZKLFK DOO DFWV DQGUHODWLRQVKLSVDUHPHDVXUHGEDVFDOHRI
PRUDO HYDOXDWLRQ 7KH :HVWHUQ PRUDO SULQFLSOH RI FRQVHQWLQJ DGXOWV UHMHFWV
80. ‹ % L O D O 3 K L O L S V F R P
SXQLVKPHQW LQFDVHVZKHUHWKHUHLVQRGLVFHUQDEOHKDUPWRWKHDGXOWVLQYROYHG2Q
WKH RWKHU KDQG ,VODDP KROGV WKDW DGXOWHU DQG IRUQLFDWLRQ DUH FULPHVDJDLQVW
VRFLHW ZKHQ WKH EHFRPHSXEOLFNQRZOGHJH7KHDWWDFNWKHIRXQGDWLRQVRIWKH
FRPPXQLW WKHIDPLO
3URRI RI JXLOW LV OLPLWHG WR SUHJQDQFFRQIHVVLRQRUWKHWHVWLPRQRIIRXUDGXOW
0XVOLP HHZLWQHVVHV WR WKH DFW 7KHFKDQFHVRIVXFKDQDFWRFFXUULQJSXEOLFO
DUH YHU VPDOO HVSHFLDOO LQ 0XVOLP VRFLHW ZKHUH3'$V SXEOLFGLVSODVRI
DIIHFWLRQ 81. DUH VWURQJO GLVFRXUDJHG 2Q WKH RWKHU KDQGLQWKH:HVWZKHUHLWLV
FRPPRQ IRU D PDQ WR NLVVKLVJXHVW¶VZLIHDQGKLVJXHVWWRNLVVWKHPDQ¶VZLIH
DQG 3'$V DUH FRQVLGHUHG QRUPDO WKHFKDQFHRISXEOLFVH[RFFXUULQJLVJUHDWHU
)RU H[DPSOH RQ D UHFHQW 1HZ RUN/RQGRQ IOLJKW LQ WKHILUVWFODVVVHFWLRQD
PDUULHG PDQ FRSXODWHG ZLWK WKH ZRPDQ VLWWLQJ QH[W WRKLPDIWHUDIHZGULQNV
7KH FRPSOHWHOLJQRUHGWKHSURWHVWVRIRWKHUSDVVHQJHUVDQGWKHIOLJKWDWWHQGDQWV
DQGZHUHERWKDUUHVWHGRQDUULYDOLQ/RQGRQ+HDWKURZDLUSRUW
7KH ODZ LV SULPDULO D GHWHUUHQW DV LW UHTXLUHV IRXU HHZLWQHVVHV IRU
LPSOHPHQWDWLRQ 7KHSXQLVKPHQWIRUIRUQLFDWLRQ ODVKHVPLJKWVHHPVXIILFLHQW
WR FDXVHGHDWKLQPDQSHRSOH+RZHYHUWKHRQHLPSOHPHQWLQJWKHSXQLVKPHQWLV
QRW DOORZHGWRUDLVHKLVKDQGDERYHKLVVKRXOGHUOHYHO,WLVWKHHPEDUUDVVPHQWDQG
VKDPH WRRQH¶VIDPLODQGUHSXWDWLRQZKLFK GLVFRXUDJHVSHRSOHIURPEUHDNLQJWKH
ODZ 7KH IDFWWKDWWKHSHQDOWLVH[HFXWHGSXEOLFO 82. FOHDUOLQGLFDWHVWKDWLWV
JRDOLVWRSURWHFWSXEOLFPRUDOLWDQGVDIHJXDUGLWDJDLQVWFRUUXSWLRQ
7KH JRDO RI VXFK SXQLVKPHQWV LV WKH SURWHFWLRQ RI WKH IDPLOVWUXFWXUHZKLFK
UHSUHVHQWV WKH IRXQGDWLRQ RI WKH VRFLHW $ VRFLHW LQ ZKLFK DGXOWHU DQG
IRUQLFDWLRQ DUH FRQGRQHG LVRQHLQZKLFKIDPLOKDVOLWWOHRUQRPHDQLQJ,QIDFW
RQFH DGXOWHU DQG IRUQLFDWLRQEHFDPHGHFULPLQDOL]HGLQWKH¶VZLIHVZDSSLQJ
SDUWLHV DQG RUJLHV EHFDPH FRXQWU ZLGH UDJHV6LQFHWKDWSHULRGVXFKSUDFWLFHV
KDYHHQWHUHGPDLQVWUHDPEHKDYLRUDWSDUWLHVDQGQRORQJHUFDXVHDQVXUSULVH
+2026(;8$/,7
+RPRVH[XDOLW DQG OHVELDQLVP KDYHEHHQGXEEHG³DOWHUQDWLYHOLIHVWOHV´³SHUVRQDO
SUHIHUHQFH´ ³D QDWXUDO YDULDWLRQ´ HWFLQWKH:HVWWRGD:KHUHKRPRVH[XDOLWZDV
FRQVLGHUHG DQ LOOQHVV EWKH$VVRFLDWLRQRI3VFKLDWULVWVLWLVQRZUHPRYHGIURPWKH
OLVW DQG UHSODFHG E KRPRSKRELD WKH GLVOLNH RIKRPRVH[XDOVDQGKRPRVH[XDOLW 83. RQVHTXHQWO ,VODDP DQG 0XVOLPV DUHFRQVLGHUHGLQWROHUDQWDQGELDVHGGXHWRWKHLU
FRQWLQXHG RSSRVLWLRQ $UJXPHQWV LQ IDYRURIWROHUDQFHWRKRPRVH[XDOVDUHEDVHGRQ
WKHDVVXPSWLRQWKDWKRPRVH[XDOEHKDYLRULVELRORJLFDOOEDVHGDQGQRWPHUHOOHDUQHG
IURPVRFLHW
(DUO RSSRVLWLRQ WR KRPRVH[XDOLWZDVEDVHGRQWKHDUJXPHQWWKDWVXFKEHKDYLRU
ZDV XQQDWXUDO 6RGRPFDQQRWSURGXFHFKLOGUHQ ZKLFKLVRQHRIWKHPDLQQDWXUDO
FRQVHTXHQFHV RI VH[XDO UHODWLRQV ³0RWKHU 1DWXUH´GLGQRWPDNHXVWKDWZDLW
ZDV DUJXHG7RFRXQWHUVXFKDUJXPHQWVKRPRVH[XDOUHVHDUFKHUVVFRXUHGWKHHDUWK
XQWLO WKHIRXQGVXSSRVHGKRPRVH[XDOEHKDYLRUDPRQJWKHDQLPDONLQJGRP7KH
IRXQGWKDWWKHPDOHVRIVRPHVSHFLHVRIH[RWLFILVKHVRIWKHFRDVWRI-DSDQLPLWDWHG
WKH EHKDYLRU RI IHPDOHV RI WKH VSHFLHV LQ RUGHU WR SUHYHQW RWKHU PDOHV IURP
LPSUHJQDWLQJ WKHLU PDWHV DQG VRPH UDUH EXWWHUIOLHVIURPLVODQGVRIWKHFRDVWRI
84. ‹ % L O D O 3 K L O L S V F R P
$IULFD DOVR KDG PDOHV H[KLELWLQJ IHPDOH EHKDYLRU GXULQJ PDWLQJ VHDVRQ HWF
+RZHYHU LI WKH DQLPDO NLQJGRP LV WR EHXVHGWRMXVWLIKXPDQEHKDYLRUWKHUH
DOVR H[LVWVDVSLGHULQ6RXWK$PHULFDZKRVHIHPDOHLVPXFKODUJHUWKDQWKHPDOH
:KHQPDWLQJLVFRPSOHWHWKHIHPDOHHDWVKHUPDWH
'XULQJ WKH¶VLWZDVFODLPHGWKDWDJODQGLQWKHEDVHRIWKHEUDLQZKLFKLVVPDOO
LQ ZRPHQDQGODUJHLQPHQZDVIRXQGWREHVPDOODPRQJKRPRVH[XDOV+RZHYHU
WKLV HYLGHQFH ZKLOH VHHPLQJ LQFRQWURYHUWLEOH WR WKH ODPDQZDVLPPHGLDWHO
UHIXWHG EVFLHQWLVWV7KHGDWDZDVWDNHQIURPFURVVVHFWLRQVRIWKHEUDLQVRIGHDG
DGXOW KXPDQV ZKRVH VH[XDO SUHIHUHQFH ZDV LGHQWLILHG SULRU WR GHDWK
RQVHTXHQWO WKH UHGXFHG VL]H DPRQJ KRPRVH[XDOVFRXOGKDYHEHHQDUHVXOWRI
WKH SUDFWLFH DQG QRW LWV FDXVH 7KDW LV WKHFRXOGKDYHEHHQERUQZLWKQRUPDO
VL]HGJODQGVZKLFK WKHQEHFDPHVPDOOGXHWRWKHLUGHYLDQWOLIHVWOH
5HFHQWO JHQHWLFV KDV EHFRPH WKH PRVWFRPPRQOXVHGIRXQGDWLRQIRUWKHSUR
JD DUJXPHQW ,Q 'U 'HDQ +DPHU D UHVHDUFKHU DW WKH1DWLRQDODQFHU
,QVWLWXWH FODLPHG WRKDYHGLVFRYHUHG³WKHILUVWFRQFUHWHHYLGHQFHWKDWµJDJHQHV¶
UHDOO GR H[LVW´+RPRVH[XDORULHQWDWLRQZDVVXSSRVHGOWUDQVPLWWHGWRPDOHVRQ
WKH ; FKURPRVRPH IURP WKH PRWKHU +DPHU¶V ILQGLQJV SXEOLVKHG LQ WKH
SUHVWLJLRXV MRXUQDO 6FLHQFH WUDQVIRUPHG KLV FRORUOHVV FDUHHU DV D JRYHUQPHQW
VFLHQWLVW LQWR D GQDPLF PHGLD SHUVRQDOLW DQG SHQQHG KLV PHPRLUV+HJDYH
H[SHUW WHVWLPRQ WR WKH RORUDGR 6XSUHPH RXUW WKDW IRUPHG WKHEDVLVRIWKH
YLFWRULRXV GHFLVLRQ VWULNLQJ GRZQDQWLJD3URSRVLWLRQ+RZHYHUDUHSOLFDWLRQ
RI KLV VWXG DW WKH 8QLYHUVLW RI :HVWHUQ 2QWDULR IDLOHG WR ILQG DQ OLQNDJH
ZKDWVRHYHUEHWZHHQWKH;FKURPRVRPHDQGVH[XDORULHQWDWLRQ
,WZDVDOVRIRXQG
WKDW +DPHU¶V VWXG ODFNHG D FRQWUROJURXS DIXQGDPHQWDOSULQFLSOHRIVFLHQWLILF
UHVHDUFK )XUWKHUPRUH LQ -XQH WKHKLFDJR7ULEXQHUHSRUWHGWKDWDMXQLRU
UHVHDUFKHU LQ +DPHU¶V ODERUDWRU ZKR DVVLVWHG LQ WKH JHQH PDSSLQJ LQ WKH
KRPRVH[XDOLW VWXG DOOHJHG WKDW KH VHOHFWLYHOUHSRUWHGKLVGDWD6KHZDVWKHQ
VXPPDULO GLVPLVVHG IURP KHU SRVWGRFWRUDO IHOORZVKLS LQ+DPHU¶V ODE%XWD
1DWLRQDO ,QVWLWXWHV RI +HDOWK LQYHVWLJDWLRQVXEVWDQWLDWHGKHUFODLPVDQGJDYHKHU
DQRWKHU SRVLWLRQ LQ D GLIIHUHQW ODE 7KRXJK 'U+DPHU ZDV FR DEXWKLVRZQ
VH[XDOLWLQKLVPHPRLUVKHODWHUDGPLWWHGLQKLVOHFWXUHVWKDWWKHZDVJD
,W VKRXOG EH QRWHG WKDW ,VODDP LQ LWV ILQDO IRUP GLG QRW LQWURGXFH DQWLJD
OHJLVODWXUH WR WKH ZRUOG 7KH WH[WV RI WKH 7RUDK DUH UHSOHWH ZLWK FOHDU
FRQGHPQDWLRQRIVXFKSUDFWLFHV
7KH FRQVHTXHQFH RI $,'6 LV HQRXJK WR SURYH WKDW KRPRVH[XDOLW LVHYLODQG
GDQJHURXV WR VRFLHW 7KH HDUO VSUHDG RI $,'6 ZDV FRQFHQWUDWHGDPRQJWKH
7KHVWXGORRNHGDW SDLUVRIEURWKHUVDOORIZKRPZHUHJD+HTXHULHGWKHPDERXW
KRPRVH[XDOLWDPRQJWKHLUUHODWLYHVDQGIRXQGDSUHSRQGHUDQFHRIJDIDPLOPHPEHUVRQWKH
PRWKHU¶VVLGH:KHQKHORRNHGDWWKHLU;FKURPRVRPHVKHIRXQGWKDW RIWKH SDLUVRIJD
EURWKHUVVKDUHGDQDUHDDWDVSRWQHDURIWKHFKURPRVRPH+RZHYHUVHYHQRIWKHSDLUVODFNHGWKH³JD
JHQH´1RUGLGUHVHDUFKORRNDWWKHSURSRUWLRQRIKHWHURVH[XDORUKHWHURKRPR EURWKHUSDLUVDOVRVKDUH
WKHJHQHWLFPDWHULDODWWKH³JDJHQH´ORFDWLRQ7KHSUHSRQGHUDQFHRIKRPRVH[XDOUHODWLYHVRQWKH
PRWKHUV¶VLGHFRXOGDOVRKDYHEHHQGXHWRWKHZHOOHVWDEOLVKHG IDFWDPRQJVRFLRORJLVWVWKDWZRPHQ
NQRZPXFKPRUHDERXWWKHLUUHODWLYHVWKDQGRPHQ
7KH*XLGH2FWREHU
85. ‹ % L O D O 3 K L O L S V F R P
KRPRVH[XDO FRPPXQLW ,W ODWHU VSUHDG WR WKHKHWHURVH[XDOFRPPXQLWWKURXJK
EORRG WUDQVIXVLRQV DQG LQWUDYHQRXV GUXJ XVDJH DQG VRFDOOHG ELVH[XDOV $QG
FRQWLQXHVRQDUDPSDJHDPRQJSURPLVFXRXVKHWHURVH[XDOV
,VODDP FRQVLGHUV KRPRVH[XDOLW WR EH WKH UHVXOWRIDFKRLFH,WLVLQFRQFHLYDEOH
WKDW *RG PDGH SHRSOH KRPRVH[XDOV WKHQ GHFODUHG LW D FULPH DQG SUHVFULEHG
SXQLVKPHQWV IRULWLQERWKWKLVOLIHDQGWKHQH[W7RDFFHSWVXFKDSURSRVLWLRQLVWR
DFFHSW WKDW *RG LV XQMXVW ,QFOLQDWLRQV FDQ H[LVWZLWKLQKXPDQVIRUDYDULHWRI
QDWXUDO DQG XQQDWXUDO DFWV IURP IRUQLFDWLRQ WR UDSH DQG IURPQHFURSKLOLD WR
EHVWLDOLW7KHVHLQFOLQDWLRQVPDFRPHIURPMLQQVXJJHVWLRQVPHGLDLQIOXHQFHRU
HYHQ IURPKXPDQZKLVSHULQJVRUGLUHFWFRQWDFW+XPDQEHLQJVDUHQRWOLNHURERWV
ZKR RQO GR ZKDW WKH DUH SURJUDPPHG WRGR+XPDQVFKRRVHDQG*RGKROGV
WKHP UHVSRQVLEOH IRU WKHLU FKRLFHV :HUH KRPRVH[XDOLW D SURGXFW RI JHQHWLF
GHVWLQ LWZRXOGEHXQIDLUIRU*RGWRFULPLQDOL]H LWDQGSXQLVKWKRVHZKRSUDFWLFH
LWXUUHQWOVRPHVFLHQWLVWVDUHHYHQFODLPLQJWKDWPXUGHULVRIJHQHWLFRULJLQ7R
DFFHSWWKDWZRXOGPHDQWRH[FXVHPXUGHUHUVDQGWROHUDWHPXUGHU
,VODDP LQVWUXFWVSDUHQWVWRVHSDUDWHWKHLUFKLOGUHQLQWKHLUEHGVEWKHDJHRIWHQLQ
RUGHU WR DYRLG VH[XDO H[SHULHQFHV ZKLFK PD UHVXOW IURP FKLOGKRRG
H[SHULPHQWDWLRQ 6XFK H[SHULHQFHV PDEHUHLQIRUFHGEFRQWDFWVLQVFKRROVDQG
WKURXJK DEXVH IURP DGXOWV $OVR WKH GLVWLQFWLRQV EHWZHHQ PDOHDQGIHPDOHDUH
VWURQJO PDGH LQ ,VODDPLF WHDFKLQJV 7KH 3URSKHW FXUVHG PHQ ZKR LPLWDWHG
ZRPHQ DQGZRPHQZKRLPLWDWHGPHQ7KH:HVWHUQIDVKLRQLQGXVWULVFRQWUROOHG
E KRPRVH[XDOVZKRDWWHPSWWREOXUWKHGLVWLQFWLRQEHWZHHQPDOHVDQGIHPDOHVLQ
RUGHU WR PDNH WKHLU EHKDYLRU PRUHDFFHSWDEOHRQVHTXHQWOPHQ¶VIDVKLRQKDV
EHFRPH PRUHIHPLQLQHLQVWOHDQGFRORUDQGZRPHQDUHQRZZHDULQJWKUHHSLHFH
VXLWV WLHV DQG KDWV DQG WUDGLWLRQDOO PHQ¶V VKRHV 7KHVH GLVWLQFWLRQV PD EH
UHODWLYH DQG YDU IURP VRFLHW WR VRFLHW )RU H[DPSOH LQ 6FRWODQG PHQ
WUDGLWLRQDOO ZHDUOLWWOHNQHHOHQJWKGUHVVHVFDOOHG³NLOWV´,Q6FRWODQGLWZRXOGQRW
EH FRQVLGHUHG LPLWDWLRQRIIHPDOHVEXWLQDVRFLHWZKHUHRQOZRPHQZHDUVXFK
GUHVVLWZRXOGEHFRQVLGHUHGLPLWDWLRQ
$3267$6
2EMHFWLRQ WR ,VODDP LV RIWHQUDLVHGDJDLQVWWKHGHDWKSHQDOWSUHVFULEHGIRUDSRVWDV
DEDQGRQPHQW RIUHOLJLRQ 86. 6LQFHUHOLJLRQLQ:HVWHUQFLYLOL]DWLRQFDPHWREHORRNHGDW
DV D SHUVRQDOFKRLFHZKLFK FDQQRWEHHQIRUFHGEHLWKHUKXUFKRUVWDWHWRH[HFXWHD
SHUVRQIRUOHDYLQJKLVUHOLJLRQZRXOGQDWXUDOOVHHPH[WUHPH
,W VKRXOG EHNHSWLQPLQGWKDWZKHQFDSLWDOSXQLVKPHQWIRUPXUGHUZDVDEROLVKHG
LQ WKH8.LQ LWZDVUHWDLQHGIRUWUHDVRQDQGSLUDFZLWKYLROHQFH$QGLWZDV
DOVR WKH OHJDO SXQLVKPHQW IRU VHWWLQJ ILUHWR+HU0DMHVW¶VVKLSVDQGGRFNDUGV
XQWLO
0RVW FRXQWULHV KDYHH[HFXWHGLWVFLWL]HQVIRUWUHDVRQ7UHDVRQLVDQ
DFW RI UHEHOOLRQ DJDLQVW WKHVWDWH6WDWHVHFUHWVDUHJLYHQWRRWKHUFRXQWULHVZKLFK
PDQRWEHDWZDUZLWKWKHVWDWH
,VODDP LV QRW PHUHO D UHOLJLRQ EXW DFRPSOHWHVVWHPRIOLIH,WVUXOHVQRWRQO
JRYHUQ LQGLYLGXDO FRQGXFW EXW DOVR VKDSH WKHEDVLFODZVDQGSXEOLFRUGHULQWKH
7KH ULPLQDO'DPDJH$FWUHSODFHGFDSLWDOSXQLVKPHQWZLWKOLIHLPSULVRQPHQWIRUWKHVH
RIIHQFHV3XQLVKPHQWLQ,VODPLF/DZS 87. ‹ % L O D O 3 K L O L S V F R P
0XVOLP VWDWH $SRVWDVHQFRXUDJHVWKHUHMHFWLRQRIODZDQGRUGHURIVRFLHW,WLV
DQ DFW RI WUHDVRQ DJDLQVW WKH VWDWH ZKLFK ZRXOGHQFRXUDJHUHEHOOLRQDPRQJWKH
ZHDNHUFLWL]HQV
2QH ZKR SHUVRQDOO DEDQGRQV WKH IDLWK DQG OHDYHV WKH FRXQWU ZRXOG QRWEH
KXQWHG GRZQ DQG DVVDVVLQDWHG 1RU ZRXOG RQH ZKR DSRVWDWHV SULYDWHO DQG
UHPDLQV LQ WKH 0XVOLP VWDWH FRQIRUPLQJ WR WKH RXWZDUG UXOHV RI WKH VWDWHEH
WUDFNHG GRZQ DQG H[HFXWHG 7KH SUDFWLFH RI VHWWLQJ XS LQTXLVLWLRQ FRXUWV WR
H[DPLQHSHRSOH¶VIDLWKLVQRWDSDUWRI,VODDPLFOHJDOWUDGLWLRQ
7KHUH LV QR FRPSXOVLRQ LQ MRLQLQJ ,VODDP $QRQHPDMRLQWKHUHOLJLRQEXWLW
VKRXOG QRW EH WDNHQ OLJKWO 2QO WKRVH ZKRDUHVHULRXVVKRXOGMRLQ7KHGHDWK
SHQDOW GLVFRXUDJHV WKRVH ZKR PLJKW WKLQN WR MRLQ WKH UHOLJLRQ LQ RUGHU WR
XQGHUPLQH LW IURP ZLWKLQ 7KH DSRVWDV ODZ ZDV ILUVW LQVWLWXWHG WR VWRS WKH
XQGHUPLQLQJ RI WKH VWDWH -HZV LQ 0DGHHQDK ZHUH FRQYHUWLQJ WR ,VODDP DQG
DSRVWDWLQJ VKRUWOWKHUHDIWHU LQRUGHUWRGHVWURWKHFRQILGHQFHRIQHZOFRQYHUWHG
0XVOLPV6RRUDK$DOµ,PUDDQ 88. 7KH GHDWKSHQDOWLVPDLQOIRUDSRVWDWHVZKRFRRSHUDWHZLWKHQHPLHVDWZDUZLWK
WKH 0XVOLP VWDWH RUWKRVHZKRJDWKHUSHRSOHDJDLQVW,VODDPDQGILJKWDJDLQVWWKH
VWDWH
:HVWHUQ LYLOL]DWLRQH[HFXWHVLWVFLWL]HQVIRUJLYLQJDZDVWDWHVHFUHWV VRPHWKLQJ
PDWHULDO,VODDPLFODZSUHVFULEHVWKHGHDWKSHQDOWIRUVRPHWKLQJIDUPRUHVHULRXV
5HEHOOLRQDJDLQVW*RGLVDIDUJUHDWHUFULPHWKDQUHEHOOLRQDJDLQVWVWDWHVHFUHWV
',(7$5/$:6
$/2+2/
7KH FRQVXPSWLRQ RI DOFRKRO LV VXFK DQRUPDOSDUWRI:HVWHUQFXOWXUHWRGDWKDWLWV
SURKLELWLRQ DQZKHUH DSSHDUV WR EH H[WUHPH DQG XQUHDVRQDEOH 7KH PHGLFDO
SURIHVVLRQ KDV LQ UHFHQW WLPHVVWDWHGWKDWKDOIDJODVVRIZLQHZLWKPHDOV KHOSVZLWK
GLJHVWLRQDQGLWORZHUVEORRGSUHVVXUH
7KH KDUP LQ DOFRKRO IDU RXWZHLJKV WKHVH EHQHILWV :KHQRQHFRQVLGHUVRQRQH
KDQG WKH QXPEHU RI OLYHV ORVWDVDUHVXOWRIGUXQNGULYLQJWKHQXPEHURIYLROHQW
DQG KHLQRXV FULPHV FRPPLWWHG LQVWDWHVRILQWR[LFDWLRQDQGSHRSOHZKRGLHDVD
UHVXOW RI DOFRKROLVP
WKHOLWWOHEHQHILWLQDOFRKROEHFRPHVLQVLJQLILFDQW$OFRKRO
LV LQYROYHG LQ
RI WKHPRUHWKDQ DQQXDOURDGWUDIILFIDWDOLWLHVLQWKH
8QLWHG 6WDWHV LQ SRVVLEO LQMXULHV WR SHUVRQV DQG LQ PRUH WKDQ
ZRUWK RI SURSHUWGDPDJH
%DVHGRQSXEOLVKHGVWXGLHV5RL]HQ
VXPPDUL]HG WKHSHUFHQWDJHVRIYLROHQWRIIHQGHUVZKRZHUHGULQNLQJDWWKHWLPHRI
WKH RIIHQVHDVIROORZVXSWRRIKRPLFLGHRIIHQGHUVRIVH[XDORIIHQGHUV
DQG XS WR RIPHQLQYROYHGLQPDULWDOYLROHQFH3HUQDQHQ IRXQGWKDWRI
YLROHQW FULPHV UHSRUWHG WR WKHSROLFHLQYROYHGDOFRKROZKLOHRIWKHYLFWLPV
7LPH0DJD]LQH VWDWHGWKDWDIWHUKHDUWGLVHDVHDQGFDQFHUDOFRKROLVPZDVWKHFRXQWU¶V
ELJJHVWKHDOWKSUREOHP0RVWDOFRKROUHODWHGGHDWKVDUHFDXVHGEFLUUKRVLV RIWKHOLYHU
$OFRKRO'HFLVLRQVRQ7RS$PHULFDQROOHJH+HDOWK$VVRFLDWLRQ
7KH1HZ(QFFORSDHGLD%ULWDQQLFDYROS
89. ‹ % L O D O 3 K L O L S V F R P
EHOLHYHG WKHLU DVVDLODQWV KDG EHHQ GULQNLQJ
7KHVRFLDODQGHFRQRPLFFRVWVRI
DOFRKROLVP DQG KHDY GULQNLQJ DUH HVVHQWLDOO LQFDOFXODEOH $Q HVWLPDWH RI
DV WKH FRVW RIKHDOWKDQGZHOIDUHVHUYLFHVSURYLGHGWRDOFRKROLFV
DQG WKHLU IDPLOLHV LQ WKH 8QLWHG 6WDWHV DORQH VXJJHVWV WKH PHDVXUH RIHIIHFWV
ZRUOGZLGH UXGH SURMHFWLRQV RI WKH DQQXDOFRVWVRIDOFRKROLVPWRWKHQDWLRQDO
HFRQRP RI WKH 8QLWHG 6WDWHVUDQJHIURP WR
³,QKDOIRIDOOPXUGHUVLQWKH86$HLWKHUWKHNLOOHURUWKHYLFWLPRUERWKKDYHEHHQ
GULQNLQJ´
$OODDK UHFRJQL]HG WKDW WKHUH LV VRPH JRRG LQDOFRKROZKHQLWZDV
SURKLELWHG HDUVDJRVDLQJ
¢øŽ à’èû ú ÷ ¦’ïÈ¢¢øø’¯Ê¤ÈÂʲ¢üô ó Þ ç¢ü÷ÈÂZŽ¦Šï ö’¯Ê¤¢øŽ ç ’òŒë ŽÂÊÈø’ó¦ÈÂŽÂø¼’ó¦ŽúßîûŒóŠ˜È
³7KHDVNRXDERXWLQWR[LFDQWVDQGJDPEOLQJ 6D7KHUHLV JUHDWKDUP
LQ ERWKDQGEHQHILWWRSHRSOH +RZHYHUWKHKDUPLQWKHPLVJUHDWHUWKDQ
WKHEHQHILW´ 90. 7KRVHZKRDUHLQYROYHGLQWKHDOFRKROLQGXVWUIURPWKHIDUPHUWRWKHZDLWUHVVLQ
WKH EDU DOO EHQHILWHFRQRPLFDOO6RGRWKRVHLQYROYHGLQWKHKHURLQDQGFRFDLQH
LQGXVWU KRZHYHU KXPDQ FLYLOL]DWLRQUHFRJQL]HVWKHJUHDWHUKDUPDQGSURKLELWV
LWV SURGXFWLRQ VDOH DQG FRQVXPSWLRQ $OFRKRO LVDQDGGLFWLYHGUXJLQWKHVDPH
FDWHJRU DV KHURLQ DQG FRFDLQH ³*RYHUQPHQW HIIRUWV WR FRQWURO DOFRKROLF
EHYHUDJHV JR EDFN DVIDUDVUHFRUGHGKLVWRU7KHRGHRI+DPPXUDEL LQFOXGHG
UHJXODWLRQV IRU WKHVDOHDQGFRQVXPSWLRQRIDOFRKRO7KDWWKHODZVRIWHQIDLOHGWR
SURGXFH WKH GHVLUHG HIIHFWV ± WHPSHUDQFH DQG JRRG SXEOLF RUGHUDQGSHUKDSV
UHYHQXH H[FHHGLQJ WKH VRFLDO FRVWV RI H[FHVV LV LQIHUUHG IURP WKHIUHTXHQW
OHJLVODWLYH DWWHPSWV DW WRWDOSURKLELWLRQLQQXPHURXVODQGVWKURXJKRXWKLVWRU´
7KH PRVW UHFHQW QDWLRQDO HIIRUW ZDVLQWKH8QLWHG6WDWHVGXULQJWKH3URKLELWLRQ
(UD WR 91. LQ ZKLFKWKHSURGXFWLRQDQG VDOHRIDOFRKROZDVEDQQHG,Q
WKH UHVROXWLRQ IRU VXEPLVVLRQ RI WKH3URKLELWLRQDPHQGPHQWUHFHLYHGWKH
QHFHVVDU WZRWKLUGV YRWH LQ RQJUHVVWKH(LJKWHHQWK$PHQGPHQWZDVUDWLILHG
RQ -DQ DQGZHQWLQWRHIIHFWDHDUODWHU(YHQDIWHUWKHODZ¶V UHSHDOLQ
'HF
D IHZ VWDWHV FRQWLQXHG VWDWHZLGH SURKLELWLRQ XS XQWLO
$FWXDOOWKHILUVWVWDWHSURKLELWLRQODZZDVSDVVHGLQ0DLQHLQ
$OFRKRO$OHUW1DWLRQDO,QVWLWXWHRQ$OFRKRO$EXVHDQG$OFRKROLVP1DWLRQDO,QVWLWXWHVRI+HDOWK
1R2FWREHU
,ELG
$OFRKRODQG2WKHU'UXJV5LVN%XVLQHVV$PHULFDQROOHJH+HDOWK$VVRFLDWLRQ
7KH1HZ(QFFORSDHGLD%ULWDQQLFDYROS
3URKLELWLRQEURXJKWLQWREHLQJDQHZNLQGRIFULPLQDO±WKHERRWOHJJHU7KHFDUHHURI$ODSRQHZDV
DGUDPDWLFLQVWDQFHRIWKHGHYHORSPHQWRIERRWOHJJLQJRQDODUJHVFDOH+LVDQQXDOHDUQLQJVZHUH
HVWLPDWHGDW7KHULVHRIWKHERRWOHJJLQJJDQJVOHGWRDVXFFHVVLRQRIJDQJZDUVDQG
PXUGHUV
7KH1HZ(QFFORSDHGLD%ULWDQQLFD YROS
92. ‹ % L O D O 3 K L O L S V F R P
7KH 3URSKHW UHIHUUHG WR DOFRKROLQWR[LFDQWV DV EHLQJ WKH URRW RI FRUUXSWLRQ
$OFRKRO ORZHUV LQKLELWLRQVDQGPDNHVKXPDQVIHHOFRPIRUWDEOHGRLQJFULPHVWKDW
WKH ZRXOGEHVKWRFRPPLWZKLOHVREHU$TXLHWVKSHUVRQFRPPRQOEHFRPHV
ORXG DQG ERLVWHURXV XQGHU WKH LQIOXHQFH RIDOFRKRO1HZVUHSRUWVDERXWDIDWKHU
UDSLQJ KLV HDUROG GDXJKWHU XVXDOO PHQWLRQ WKDW KH ZDV LQWR[LFDWHG
RQVHTXHQWOLWLVWKHEUHHGLQJJURXQGIRUFULPHDQGFRUUXSWLRQ
7KH DUJXPHQW RI PRGHUDWH GULQNHUV WKDWWKHDUHDEOHWRFRQWUROWKHLULQWDNHDQG
WKDW WKH GR QRW VXIIHU IURP WKH LOO HIIHFWV RILQWR[LFDWLRQLVQRWUHOHYDQWWRLWV
SURKLELWLRQ 7KH 6KDUHH¨DK FRQVLGHUV WKH QRUP DQG QRW WKH H[FHSWLRQV 0RVW
SHRSOH ZKR GULQN JHW LQWR[LFDWHG DW VRPH WLPH RU DQRWKHU $OO LWWDNHVLVRQH
RFFDVLRQ IRU KDUP WR RFFXU 7KRVHZKRQHYHUJHWGUXQNDUHUDUH)XUWKHUPRUHD
ODZ ZKLFKVWDWHVWKDWRQOWKRVHZKRZHUHPRGHUDWHGULQNHUVZRXOGEHDOORZHGWR
GULQN ZRXOGREYLRXVOEHLQHIIHFWLYH
7KH TXHVWLRQ RI ZKDOFRKROLVSURKLELWHGLQWKLVOLIHEXWSHUPLWWHGLQSDUDGLVHLV
VRPHWLPHV UDLVHG ,W VKRXOG EH QRWHG WKDW WKH ZLQH RI SDUDGLVH LVFRPSOHWHO
GLIIHUHQW IURP WKHZLQHRIWKLVZRUOG$OORIWKHQHJDWLYHHIIHFWVDUHUHPRYHGDQG
DOO RI WKH JRRG LV HQKDQFHG EHRQG KXPDQ FRPSUHKHQVLRQRQVHTXHQWOWKH
3URSKHW VDLG WKDW ZKDW SDUDGLVH FRQWDLQV QR HH KDVHYHUVHHQQRHDUKDVHYHU
KHDUG RUKDVLWFURVVHGWKHPLQGRIDQRQH
5LYHUVRIPLONDQGKRQHLQSDUDGLVH
DUH GHVFULEHG VLPLODUO 0LON JRHV EDG DQG KRQH FDQ URW LQ WKLV OLIH EXWLQ
SDUDGLVH WKH UHPDLQ SXUH DQG WDVWH LQ D ZD LQFRQFHLYDEOHWRKXPDQEHLQJV
7KHVH H[DPSOHVDUHJLYHQE*RGWRJLYHFRQILGHQFHWRWKRVHZKRKDYHDEVWDLQHG
IURPWKHIRUELGGHQSOHDVXUHVRIWKLVZRUOG7KHDUHDVVXUHGWKDWWKHKDYHPLVVHG
QRWKLQJ 7KH ZLQHRIWKHQH[WZRUOGLVVRPXFKEHWWHUWKDQWKLVZRUOG¶VEHVWZLQH
WKDWLWPDNHVWKHZLQHRIWKLVZRUOGVHHPFRPSOHWHOXVHOHVV
325.
6RPH KDYH WULHG WR H[SODLQDZDWKHSURKLELWLRQRISRUNLQ-XGDLVPDVDUHVXOWRILWV
IDVW UDWH RI GHFRPSRVLWLRQ +RZHYHUVXFKH[SODQDWLRQVGRQRWFRYHUWKHLPPHGLDWH
FRRNLQJ DIWHUVODXJKWHU7KHDUHVHFXODULVWLQWHUSUHWDWLRQVIRUODZVZKLFKWKHGRQRW
EHOLHYH ZHUHUHYHDOHGE*RG
)RU WKH EHOLHYHUV SRUN LV SURKLELWHG E *RG EHFDXVH LWLVKDUPIXOWRKXPDQV
:KHWKHU WKH KDUPFDQEHLGHQWLILHGRUQRW0XVOLPVDYRLGLWSXWWLQJWKHLUWUXVWLQ
*RG 3HUKDSV VRPH RI WKH KDUP ZDV UHODWHG WRWKHKLJKUDWHRIGHFRPSRVLWLRQ
OHDGLQJ WR IRRG SRLVRQLQJ 0RGHUQ VFLHQFHKDVLGHQWLILHGRWKHUDVSHFWVRIKDUP
7KH GLVHDVH WULFKLQRVLVLVFDXVHGEWKHWULFKLQHOOD VSLUDWLV ZRUPIRXQGSULPDULO
LQ SLJV +XPDQV XVXDOODFTXLUHWKHLQIHFWLRQEHDWLQJHQFVWHG ODUYDHLQUDZRU
XQGHUFRRNHG SRUN RU SRUNSURGXFWV
*DVWULFMXLFHVOLEHUDWHWKHHQFVWHG ODUYDH
ZKLFK UDSLGO PDWXUH DQG PDWH :LWKLQ GDV WKH DGXOW IHPDOH EHJLQV WR
GLVFKDUJH ODUYDH WKDW DUH GLVVHPLQDWHGYLDWKHEORRGVWUHDPWRPRVWERGWLVVXHV
7KHFKLHIVDIHJXDUGDJDLQVWWULFKLQRVLVLVDGHTXDWHFRRNLQJRISRUNDWWKH³QHZO´UHFRPPHQGHG
WHPSHUDWXUHRIGHJUHHVHOVLXVR
)DKUHQKHLW 94. ‹ % L O D O 3 K L O L S V F R P
/DUYDH WKDW UHDFK VWULDWHG PXVFOHHQFVW DQG UHPDLQ YLDEOH IRU VHYHUDOHDUV
'HDWK PD RFFXU LQ ZHHNVLQRYHUZKHOPLQJLQIHFWLRQVPRUHRIWHQLWRFFXUV
LQ ZHHNV IURPDPDMRUFRPSOLFDWLRQVXFKDVFDUGLDFIDLOXUHRUSQHXPRQLD,Q
VSLWH RID PDUNHGUHGXFWLRQLQWKHSUHYDOHQFHRIWULFKLQRVLVLQKXPDQVLQWKH86$
WKH DQQXDOLQFLGHQFHRILQIHFWLRQLVRYHU FDVHV
2QOVL[VSHFLHVRIDGXOW
WDSHZRUPV LQIHFW KXPDQV IUHTXHQWO7DHQLD VROLXP WKH SRUN WDSHZRUP DQG
7DHQLD VDJLQDWD WKH EHHI WDSHZRUP DUH WKH PRVW FRPPRQ +RZHYHU SRUN
WDSHZRUP LQIHFWLRQ PD EH FRPSOLFDWHG E FVWLFHUFRVLV IRUZKLFKQRVSHFLILF
WUHDWPHQW LV DYDLODEOH $PRQJ LWV VLJQV LV HSLOLSV DPRQJWKRVHZKROLYHLQDQ
HQGHPLF DUHDIRUWKHSRUNWDSHZRUP7KHHUDGLFDWLRQRI7DHQLD VROLXP LVDPDWWHU
RIPXFKJUHDWHUXUJHQFWKDQWKDWRIWKHRWKHUWDSHZRUPLQIHFWLRQV
,W KDV EHHQVXJJHVWHGWKDWRQHRIWKHUHDVRQVIRUSURKLELWLRQRISRUNFRQVXPSWLRQ
OLHV LQ WKH QDWXUH RI WKH SLJ ,VODDPLF ODZ JHQHUDOO SURKLELWV WKH HDWLQJ RI
FDUQLYRUHV IOHVK HDWHUV 96. OLNH FRZV VKHHS DQG FKLFNHQ DQG SLJHRQV 7KH
FDUQLYRUH¶V QDWXUH LV LPSULQWHG LQ LWV JHQHV :KHQ D WLJHUFDWFKHVLWVSUHDQG
GHYRXUV LW WHDULQJ LWV IOHVK DSDUW ZLWK LWV IDQJV EORRG IOLQJ HYHUZKHUHLWV
IHURFLRXVQHVV LV QRW SODQQHGRUFKRVHQ*RDWVHDWJUDVVDQGYHJHWDEOHPDWWHULQD
FDOP PDQQHU QRW E FKRLFH EXW DFFRUGLQJWRWKHLUQDWXUH7KLVQDWXUHFDQQRWEH
FKDQJHG HYHQZLWKGRPHVWLFDWLRQDQGWUDLQLQJ(YHUHDUDWDFLUFXVVRPHZKHUH
LQ WKH ZRUOG DOLRQWDPHUORRVHVKLVKHDG7KRXJKOLRQVDUHUDLVHGIURPELUWKDQG
WUDLQHG WR RSHQ WKHLU PRXWKV DQG DOORZ WKHLU WUDLQHUVWRSXWWKHLUKHDGVLQWKHLU
PRXWKV HYHU VR RIWHQ D OLRQ GHFLGHV WRFORVHKLVPRXWKRQKLVWUDLQHU¶VKHDG
6LPLODUO PRYLHVWDUVUDLVHH[RWLFSHWVOLNHSDQWKHUVDQGOHRSDUGVIURPELUWKRQO
WRILQGWKDWRQHGD WKHELWHWKHP,WKDVEHHQVDLGWKDW ³RXDUHZKDWRXHDW´DV
WKH KXPDQ ERG LV PDGH IURP WKH IRRGLWFRQVXPHV:HUH RQHWRREVHUYHKRZ
SLJV OLYH DQG ZKDWWKHHDWLWZRXOGEHHQRXJKGLVFRXUDJHWKHEUDYHVWVRXOIURP
HDWLQJWKHLUPHDW
72%$2
0DQ 0XVOLPV DUH XQGHU WKH PLVWDNHQ LPSUHVVLRQ WKDW VPRNLQJ LVSHUPLVVLEOHLQ
,VODDP,WLVQRW
:KHQ FLJDUHWWHVDQGWREDFFRILUVWUHDFKHGWKH2WWRPDQ0XVOLPHPSLUHLQWKHWK
FHQWXUPRVWVFKRODUVPDGHDUXOLQJETLDDV WKDWLWZDVPDNURRK GLVOLNHG 99. VKRXOGQRW
FRPH WR WKH PRVTXH´ 7KH SHRSOH VDLG ³,W KDV EHHQ IRUELGGHQ ,W KDV EHHQ
IRUELGGHQ´ :KHQ WKLV UHDFKHG WKH 3URSKHW U 101. ‹ % L O D O 3 K L O L S V F R P
IRUELG ZKDW $OODDK KDV PDGHODZIXOEXWLWLVDSODQWZKRVHRGRU,GLVOLNH´
2Q
DQRWKHURFFDVLRQKHLQFOXGHGRQLRQVDQGOHHNDVDOVRRIIHQVLYH
+RZHYHU LQ WKH 6XUJHRQ *HQHUDO RI WKH 8QLWHG6WDWHVDQQRXQFHGWKDW
VPRNLQJ FDXVHV FDQFHU 6XEVHTXHQWO DOO FLJDUHWWHFRPSDQLHVLQWKH86$KDYH
EHHQ REOLJHG WR SXW D ZDUQLQJ RQWKHLUSDFNHWVZDUQLQJXVHUVRIGDQJHUWRWKHLU
KHDOWK 6LQFH LQ PRVWFDVHVFDQFHUFDXVHVGHDWKLWFDQQRZEHVDLGWKDWVPRNLQJ
NLOOV %DVHG RQ WKLV QHZLQIRUPDWLRQDQXPEHURIOHDGLQJ0XVOLPVFKRODUVQRZ
UXOH E TLDDV WKDW VPRNLQJ LV KDUDDP 2QH ZKR VPRNHVNQRZLQJWKDWLWFDQ
FDXVH FDQFHU DQG XOWLPDWHO KLV RU KHU GHDWKLVLQIDFWFRPPLWWLQJVXLFLGHDQG
$OODDKKDVVDLG
Ü–2B›ñ™û 0š*›ß ™3Ü™) ™8È.-Û È3›Õ 0š*™š5™Ñ Ûš.šæ™å ™I™; 104. DOVR VDLG ³:KRHYHU NLOOV KLPVHOI ZLWK DNQLIHZLOOEHLQ+HOO
IRUHYHU VWDEELQJ KLPVHOI LQKLVVWRPDFK:KRHYHUGULQNVSRLVRQDQGNLOOVKLPVHOI
ZLOO GULQN LW HWHUQDOO LQ WKH +HOOILUH$QGZKRHYHUNLOOVKLPVHOIEIDOOLQJRIID
PRXQWDLQ ZLOO IRUHYHU IDOO LQ WKH ILUH RI +HOO´
$FFRUGLQJWR,VODDPLFODZLW
PDNHV QR GLIIHUHQFH ZKHWKHU VRPHRQH NLOOVKLPVHOIEWDNLQJVPDOODPRXQWVRI
SRLVRQ RYHU D ORQJ SHULRG RI WLPH RU D ODUJH HQRXJK DPRXQWDOODWRQFH,WLV
KDUDDP WRWDNHDQVXEVWDQFHZKLFK LVNQRZQWREHKDUPIXO
6RPH SHRSOH DUJXH WKDW QRWHYHURQHZKRVPRNHVJHWVFDQFHULQIDFWWKHROGHVW
SHUVRQ LQ KLQD LV D ZRPDQ ZKRVPRNHVDFLJDUHYHUGDDQGKDVGRQHVRIRU
PRVW RI KHU OLIH +RZHYHU ODZV DUH QRWPDGHRQWKHEDVLVRIH[FHSWLRQV6XFK
H[FHSWLRQV DUHWKHUHWRUHPLQGWKHEHOLHYHUVWKDWOLIHDQGGHDWKDUHLQ*RG¶VKDQGV
6LPLODUO WKHUH DUH FDVHV RI SHRSOHZKRVHSDUDFKXWHVKDYHQRWRSHQHGDQGWKH
IHOO WHQV RI WKRXVDQGVRIIHHWDQGHWVXUYLYHGWKHIDOO+RZHYHUQRRQHLQKLVRU
KHU ULJKW PLQG ZRXOG WKHQ JR SDUDFKXWH MXPSLQJZLWKRXWDSDUDFKXWHEDVHG RQ
VXFK FDVHV 7KH ZLOO DVVXPH WKDW WR MXPS ZLWKRXW D SDUDFKXWH LV VXLFLGH
6LPLODUO WKH VWDWLVWLFV RQ VPRNLQJ FOHDUO LQGLFDWH WKDW WKH YDVW PDMRULW RI
VPRNHUVJHWFDQFHUDQGGLHRQVHTXHQWOGHFLVLRQVKDYHWREHPDGHDFFRUGLQJO
5HSRUWHGE$ERR6DµHHG LQ6DKLK0XVOLPYROSQR
5HSRUWHGE-DDELU LEQµ$EGLOODDK LQ6DKLK0XVOLPYROSQR
6RRUDKDQ1LVDD¶ 108. ‹ % L O D O 3 K L O L S V F R P
7KH IDPRXV ³0DUOERUR0DQ´ZKRDSSHDUHGRQWKHELOOERDUGVDQGDGYHUWLVHPHQWV
LQ PDJD]LQHV DQGQHZVSDSHUVDQG79ORRNLQJYHUUXJJHGLQKLVFRZERKDWDQG
MHDQ RXWILW +H GLHG RI FDQFHU DIHZHDUVDJRDQGKLVZLGRZLVFXUUHQWOVXLQJ
0DUOERURLJDUHWWHFRPSDQ IRUFDXVLQJKLVGHDWK
$1,0$/6/$8*+7(5
$QLPDO ORYHUV LQ WKH :HVW KDYH RIWHQ SRLQWHG WKHILQJHUDWWKH0XVOLPSUDFWLFHRI
VODXJKWHULQJ DQLPDOV HVSHFLDOO RQ WKH RFFDVLRQ RI µ(HG DO$G¶KDD 7KH )UHQFK
DFWUHVV %ULGJHW %DUGRW KDGPDGHDQXPEHURIGLVSDUDJLQJUHPDUNVDERXW0XVOLPVLQ
)UDQFHIRUZKLFKVKHZDVILQHGLQFRXUW,WLVFRQVLGHUHGWREHFUXHOWWRDQLPDOV
7KLV LV D FDVH RI LUUDWLRQDO VHQWLPHQWDOLW $ERUWLQJ PLOOLRQVRIKXPDQIHWXVHV
HDUO LV SHUIHFWOILQHEXWFXWWLQJDQDQLPDO¶VQHFNLVFRQVLGHUHGLQKXPDQH7KH
6RFLHW RI 3UHYHQWLRQ RI UXHOW WR $QLPDOV 63$ 109. KDVDWWHPSWHGWRSURKLELW
0XVOLPVIURPVODXJKWHULQJDQLPDOVLQPDQORFDWLRQVLQWKH:HVW
7KH :HVWHUQ PHWKRGRIVODXJKWHULQJLQYROYHVUHQGHULQJWKHDQLPDOVXQFRQVFLRXV
SULRU WR FXWWLQJ RII WKHLU KHDGV 6PDOOHU DQLPDOV OLNH FKLFNHQV DUHVWXQQHGE
HOHFWURFXWLRQ ZKLOH ODUJHU DQLPDOV DUH VWXQQHG ZLWK D VWXQ JXQ 7KHVWXQJXQ
FRQWDLQV D SLVWRQZKLFKVWULNHVWKHVNXOORIWKHDQLPDODQGNQRFNVLWXQFRQVFLRXV
$QRQH ZKR KDV HYHU UHFHLYHG DQ HOHFWULF VKRFN ZLOO FRQILUP WKDW LWLVQRWD
SOHDVDQWH[SHULHQFHDWDOO$MROWVXIILFLHQWWRUHQGHUDQDQLPDOXQFRQVFLRXVZLOOEH
TXLWH SDLQIXO:KDFNLQJVRPHRQHLQWKHKHDGZLWKDQLURQEDULVZLWKRXWDGRXEW
DQ H[WUHPHO SDLQIXO H[SHULHQFH %RWK RIWKHVHPHWKRGVDUHLQQRZDKXPDQH
7KH FDXVH WKH DQLPDOV WR VXIIHU LQFDOFXODEOH SDLQ DQG DUH LQIDFWJHDUHGWR
IDFLOLWDWHSURGXFWLRQOLQHVODXJKWHURIODUJHQXPEHUVRIDQLPDOV
0XVOLP VODXJKWHU ZKLFK VSHFLILHV WKDWWKHNQLIHVKRXOGEHUD]RUVKDUSLVQRWIHOW
E WKH DQLPDO 7KH 3URSKHWU 110. VDLG³:KHQHYHURXVODXJKWHUPDNHWKHNQLIH
VKDUS DQG UHOLHYHWKHDQLPDO´
2QOWKHMXJXODUYHLQVDQGWKHHVRSKDJXVDUHFXW
DOORZLQJ WKH DQLPDO¶V KHDUW WRSXPSRXWPRVWRIWKHEORRG7KHODFNRIEORRGWR
WKH EUDLQ FDXVHV WKH DQLPDO WR HYHQWXDOO IDOO LQWR XQFRQVFLRXVQHVV DQG GLH
JUDGXDOO 7KH SUHIHUUHG PHWKRG RI VXLFLGH DPRQJ PDQ :HVWHUQHUV LVWRFXW
RQH¶VZULVWVZLWKDVKDUSNQLIHRUUD]RUEODGH DVLWLVUHODWLYHOSDLQOHVV
$V IRU WKH DUJXPHQW RIYHJHWDULDQVWKDWKXPDQVZHUHQRWPHDQWWRHDWPHDWLWLV
VFLHQWLILFDOO IDOVH +XPDQVDUHQHLWKHUKHUELYRUHV ZKRGRQRWKDYHWKHQHFHVVDU
HQ]PHV WR GLJHVW PHDWQRUDUHWKHFDUQLYRUHVZKRGRQRWSRVVHVVWKHHQ]PHV
WR GLJHVW YHJHWDEOH PDWWHU 7KH DUH RPQLYRUHV FDSDEOH RI SURFHVVLQJ ERWK
YHJHWDEOH DQG PHDW 7KH UHDO IRUFH EHKLQG YHJHWDULDQLVPLVWKH+LQGXEHOLHILQ
NDUPD ZKLFK OHDGV +LQGXV WR EHOLHYH WKDW WKH JRDW RX HDW PD EH RXU
UHLQFDUQDWHGUHODWLYH
6ODXJKWHULQJ DQLPDOVLQRUGHUWRXVHWKHLUIXUIRUFORWKLQJWKRXJKREMHFWLRQDEOHLQ
WKH :HVW WRGD LV SHUIHFWO YDOLG DFFRUGLQJ WR,VODDPLFODZ7KHDQLPDOVZHUH
VXEPLWWHG WR KXPDQV IRU EHQHILW ,I WKHLU VNLQV DQG IXU SURYLGH KXPDQVZLWK
ZDUPWK LQ ZLQWHUV WKH PD NLOOWKHPIRULW+RZHYHUWKHPHWKRGRIVODXJKWHU
111. ‹ % L O D O 3 K L O L S V F R P
VKRXOG EH KXPDQH XUUHQWO WKH DQLPDOV DUHNLOOHGEFOXEELQJWKHPWRGHDWK
ZKLFKZRXOGEHKDUDDPSURKLELWHG 112. DFFRUGLQJ WR,VODDPLFODZ
'2*6
1RQ0XVOLPV REVHUYLQJ KRZ 0XVOLPV UHDFW DURXQG GRJVDUH JLYHQWKHLPSUHVVLRQ
WKDW0XVOLPVIHDUDQGKDWHGRJV
7KH VWDWXV RI WKH GRJ LQ WKH :HVW LVOLWHUDOOWKDWRIEHLQJ³PDQ¶VEHVWIULHQG´
'RJV DUHFDUULHGFORWKHGJURRPHGNLVVHGDQGHYHQVOHSWZLWK6RPHSHRSOHHYHQ
OHDYH DOO WKHLU LQKHULWDQFHV WRWKHP2WKHUVJLYHWKHLUORYHDQGDIIHFWLRQWRWKHP
7KH UHSODFH FKLOGUHQ IRU PDQ ZKR KDYH QRW FKLOGUHQ RU WKHLUFKLOGUHQKDYH
JURZQXS
XOWXUDO 0XVOLPV LQ LJQRUDQFHRIWHQRYHUUHDFWWRGRJV,IDGRJWRXFKHVWKHPRU
OLFNV WKHP WKH JR LQWR D VWDWH RI VKRFN EHOLHYLQJ WKDW WKHPXVWQRZZDVK
WKHPVHOYHV DQGWKHLUFORWKLQJVHYHQWLPHV7KHVFUXSXORXVODYRLGHYHQEUXVKLQJ
DJDLQVW GRJVEHOLHYLQJHUURQHRXVOWKDWHYHQGRJKDLULVLPSXUHDQGWKDWWRXFKLQJ
LWZLOOGHILOHWKHP+RZHYHUWKLVLVQRWWKHFDVH
,VODDPLF ODZSUHVFULEHVWKDWKXPDQXWHQVLOV IURPZKLFKGRJVHDWPXVWEHFOHDQHG
3URSKHW 0XKDPPDG U 113. VDLG³,IDGRJOLFNVIRRGRUGULQNIURPRXUYHVVHOSRXU
WKH FRQWHQWV RXW DQG ZDVK WKH YHVVHO VHYHQ WLPHVRQHRIZKLFKVKRXOGEHZLWK
HDUWK´
7KLVLVEDVHGRQWKHEHOLHIWKDWGRJVFDUUVRPHKDUPLQWKHLUVDOLYD7KH
XVH RI HDUWK LV IRUSXULILFDWLRQDVHDUWKDFFRUGLQJWRPRGHUQVFLHQFHLVWKHEHVW
NQRZQ VRXUFH RIDQWLELRWLFV+RZHYHUWKLVLVRQOWKHFDVHRIHDWLQJRUGULQNLQJ
YHVVHOV 7KHUH LV QR OHJDO UHTXLUHPHQW WR GR WKHVDPHLIDGRJOLFNVVRPHRQH¶V
KDQG RU WRXFKHV KLV RU KHU FORWKLQJ 7KH IROORZLQJ DUH VRPH RI WKHGLVHDVHV
FXUUHQWO LGHQWLILHGZKLFK DUHWUDQVPLWWHGEGRJVWRKXPDQV7KHGRJWDSHZRUP
'LSOLGLXP FDQLQXP LV RFFDVLRQDOO UHSRUWHG LQ FKLOGUHQ LQ (XURSH DQG WKH
$PHULFDV
DPSOREDFWHULRVLV,QIHFWLRQZLWKDPSOREDFWHU UDQNVDPRQJWKH
PRVW FRPPRQ FDXVHV RI KXPDQ EDFWHULDO GLDUUKHDV0RVWKXPDQLQIHFWLRQVDUH
DFTXLUHG E WKH LQJHVWLRQ RI ZDWHU PLON RU IRRG FRQWDPLQDWHG E GRPHVWLF
DQLPDOV 8S WR RI DVPSWRPDWLF GRJVDQGRIGRJVZLWKGLDUUKHDKDYH
EHHQ IRXQGWRH[FUHWHWKLVRUJDQLVPWUDQVLHQWODPSOREDFWHU LQIHFWLRQDOVRKDV
EHHQ WUDQVPLWWHG E VLFNSXSSLHV
/HSWRVSLURVLVDFRPPRQ]RRQRWLF LQIHFWLRQ
WUDQVPLWWHG E OLYHVWRFN SHW DQLPDOV DQG ZLOGOLIH LVFDXVHGEWKHVSLURFKHWH
/HSWRVSLUD LQWHUURJDQV 5DWV DQG GRJV DUH LPSRUWDQWLQWKHWUDQVPLVVLRQRIWKLV
GLVHDVH 7KH RUJDQLVP VXUYLYHV LQ WKH GLVWDOUHQDOWXEXOHVRIGRJVDQGWKHXULQH
PD EHFRQWDJLRXVIRUOLIH
5LFNHWWVLD ULFNHWWVLL5RFN0RXQWDLQVSRWWHGIHYHU
LV DQ HQGHPLF WLFNERUQH GLVHDVH FDXVHGE7LFNHWWVLD ULFNHWWVLL7KLVPLFUREHLV
WUDQVPLWWHG EWKHZRRGWLFNRUWKHGRJWLFN'YDULDELOLV 115. ‹ % L O D O 3 K L O L S V F R P
FDQ EH LQIHFWHG
XWDQHRXV /DUYD 0LJUDQV7ZRVSHFLHVRIGRJKRRNZRUPV
DUH IUHTXHQWO DVVRFLDWHG ZLWK FXWDQHRXV ODUYD PLJUDQV DOVRNQRZDVFUHHSLQJ
HUXSWLRQV $QFORVWRPD FDQLQXP LV IRXQG LQ GRJV
9LVFHUDO/DUYD0LJUDQV
7KLV VQGURPH LV PRVWO IRXQG LQ WRGGOHUV7R[RFDUD FDQLVDGRJURXQGZRUP
DQG OHVV FRPPRQO 7R[RFDUD FDWL D FDW URXQGZRUP DUH WKH DVFDULGV PRVW
FRPPRQO UHVSRQVLEOH IRUKXPDQGLVHDVHVWLF+GDWLG 'LVHDVH7KLVGLVHDVH
LV FDXVHG E(FKLQRFRFFXV JUDQXORVXV DQG(FKLQRFRFFXV PXOWLORFXODULVDQLQHV
DUH WKH GHILQLWLYH KRVWV DQG KXPDQ GLVHDVH IROORZVWKHLQJHVWLRQRIHJJVIURP
FRQWDPLQDWHGVXUIDFHZDWHUDQGIRUPLWHV
.HHSLQJ D GRJ LQ WKH KRPH RU NHHSLQJ RQH PHUHO DVDSHWKDVEHHQVWURQJO
GLVFRXUDJHG E WKH3URSKHWU 116. ZKRVDLG³$QJHOVRIPHUF@GRQRWHQWHUKRPHV
LQ ZKLFK WKHUH DUH SLFWXUHV RIOLYLQJEHLQJV@DQGGRJV´
.HHSLQJDGRJLQWKH
KRPH HQFRXUDJHV H[FHVVLYH FRQWDFW DQG LQFUHDVHV WKH FKDQFH RIGLVHDVHEHLQJ
WUDQVPLWWHG WR KXPDQV RUFKLOGUHQEHLQJELWWHQDQGLQIHFWHG+RZHYHUNHHSLQJD
JXDUG GRJ D KXQWLQJ GRJ RU D VKHHS GRJ RU D VHHLQJHH GRJ LV SHUIHFWO
SHUPLVVLEOH
7KH -$0$ -RXUQDO RI WKH $PHULFDQ 0HGLFDO$VVRFLDWLRQ 121. SURKLELWHG WKH XVH RI ZLQG DQGVWULQJHGLQVWUXPHQWVLQDZHOO
NQRZQ KDGHHWK VDLQJ ³7KHUH ZLOO EH SHRSOH RI P QDWLRQ ZKRZLOOOHJDOL]H
IRUQLFDWLRQ WKH ZHDULQJ RI VLON GULQNLQJ ZLQH DQG WKH X VH RI PXVLFDO
RPHU.05RFN0RXQWDLQVSRWWHGIHYHU9HWOLQ 1RUWK$P6PDOO$QLP 3UDFW
URHVH -/RXNDV $2SGHEHHFN -)DLUOH 63URFLY 3+XPDQHQWHULFLQIHFWLRQZLWKFDQLQH
KRRNZRUPV $QQ,QWHUQ0HG
$UFKLYHVRI,QWHUQDO0HGLFLQH5HYLHZ$UFLWOH ±6HSWHPEHU+XPDQ=RRQRWLF ,QIHFWLRQV
7UDQVPLWWHGE'RJVDQGDWV
-$0$-DQXDU
122. ‹ % L O D O 3 K L O L S V F R P
LQVWUXPHQWV´
+H DOVR SURKLELWHG PDOHVIURPOLVWHQLQJWRDGXOWIHPDOHVLQJHUV
VDLQJ ³6RPH SHRSOH IURP P QDWLRQ ZLOO GULQNZLQHFDOOLQJLWDQRWKHUQDPH
0HUULPHQW ZLOO EH PDGH IRU WKHPEWKHSODLQJRIPXVLFDOLQVWUXPHQWVDQGWKH
VLQJLQJRIDGXOWIHPDOHVLQJHUV´
)RON VRQJV ZLWK DFFHSWDEOH FRQWHQW VXQJ E PDOHVRUIHPDOHVXQGHUWKHDJHRI
SXEHUW DFFRPSDQLHG E D KDQGGUXPGDII 124. HQFRXUDJHG WKH SDUWLFLSDWLRQ RIVLQJLQJJLUOVDWZHGGLQJVDQGIHVWLYDOV$OVR
WKH UHFLWDWLRQ RI WKH 4XU¶DDQVKRXOGEHGRQHLQDPHORGLRXVYRLFHDVWKH3URSKHW
U 125. ZDV UHSRUWHG WRKDYHVDLG³:KRHYHUGRHVQRWVLQJWKH4XU©DDQLVQRWRQHRI
XV´
:LQG DQG VWULQJHG LQVWUXPHQWV KDYH EHHQ EDQQHG EHFDXVH RIWKHLUFDSWLYDWLQJ
SRZHU 7KHLU QRWHV DQG FKRUGV HYRNH VWURQJHPRWLRQDODWWDFKPHQWV)RUPDQ
PXVLF EHFRPHV DVRXUFHRIVRODFHDQGKRSHLQVWHDGRI*RG:KHQWKHDUHGRZQ
PXVLF EULQJV WKHP XS WHPSRUDULO OLNH D GUXJ7KH4XU¶DDQWKHZRUGVRI*RG
ILOOHG ZLWKJXLGDQFHVKRXOGSODWKDWUROH$KHDUWILOOHGZLWKPXVLFZLOOQRWKDYH
URRPIRU*RG¶VZRUGV
7KH YRLFHV RI VLQJLQJ DGXOW IHPDOHV DUH IRUELGGHQIRUPHQLQRUGHUWRNHHSWKH
VHQVXDO DWPRVSKHUH RI WKH VRFLHW DW D PLQLPXP 0HQ DUH PXFKPRUHHDVLO
DURXVHGWKDQIHPDOHVDVKDVEHHQWKRURXJKOGRFXPHQWHGEWKHFOLQLFDOVWXGLHVRI
0DVWHUV DQG -RKQVRQ RQVHTXHQWO WKH PDOH YRLFH KDVQRWEHHQSURKLELWHGWR
IHPDOHV DFFRUGLQJ WR ,VODDPLFODZ)XUWKHUPRUHWKHPDOHYRLFHOHDGVWKHPDVVHV
LQIRUPDOSUDHUV
7KH PXVLFLDQV RI WKH ZRUOG UHSUHVHQW VRPH RI WKH PRVW FRUUXSW HOHPHQWV LQ
VRFLHW 6XLFLGH DQG GUXJV DUH UDPSDQW DPRQJ WKHP ,I WKHLU PXVLFZDV WUXO
EHQHILFLDOLWZRXOGKDYHEHQHILWHGWKHPILUVWDQGIRUHPRVW
$57$1' 3+272*5$3+
,WLVZHOONQRZQWKDW,VODDPRSSRVHVSLFWRULDOUHSUHVHQWDWLRQVRIOLYLQJEHLQJV
7KLV SURKLELWLRQ ZDV QRW ILUVW LQWURGXFHG E3URSKHW0XKDPPDGU 126. ,WFDQEH
IRXQGLQWKH0RVDLFODZ DOVR
$OWKRXJK LPDJH PDNLQJ KDV EHHQ EDQQHG LQ ,VODDP IURP LWV LQFHSWLRQ LW
UHDSSHDUHG LQ 0XVOLP 6SDLQ 0RJXO ,QGLD6DIDZLG 3HUVLD DQG WKH 2WWRPDQ
(PSLUH
6DKLK$O%XNKDULYRO SQR
6XQDQLEQ0DMDKYRO SQRDQG DXWKHQWLFDWHGLQ6LOVLODK DO$KDDGHHWK DV6DKHHKDKYROS
QR
127. ‹ % L O D O 3 K L O L S V F R P
7KH 3URSKHW U 128. SURKLELWHG DOO IRUPV RILPDJHUZKHWKHUGUDZLQJVSDLQWLQJV
EDVV UHOLHI RU VWDWXHV +H LV TXRWHGDVVDLQJ ³7KRVHUHFHLYLQJWKHPRVWVHYHUH
SXQLVKPHQWRQWKH'DRI-XGJHPHQWDUHWKHLPDJHPDNHUV´
,GRODWU EHJDQ ZLWK LPDJH PDNLQJ )XUWKHUPRUH WKH YDVW PDMRULW RI SDJDQ
UHOLJLRQV HYHQ XQWLO WRGD ZRUVKLS KXPDQRUDQLPDOLPDJHV5HOLJLRXVLPDJHV
LFRQV 129. SOD D ODUJH SDUW LQKULVWLDQZRUVKLS6WDWXHVFDUYLQJVDQGSDLQWLQJVRI
-HVXV DUH FHQWUDOWRERWK3URWHVWDQWDQGDWKROLFZRUVKLSDWKROLFVDOVRYHQHUDWH
LPDJHV RI VDLQWV DQG XVH WKHP LQGHYRWLRQ7KH4XU¶DDQTXRWHVWKHSDJDQ$UDE
UHVSRQVH WR3URSKHW0XKDPPDG¶VLQYLWDWLRQWRPRQRWKHLVPLQYHUVH RI6RRUDK
1RRK ³7KH VDLGWRHDFKRWKHUµ'RQ¶WOHDYHRXUJRGV'RQ¶WJLYHXS :DGG
DQG 6XZDD¨ DJKRRWK D¨RRT DQG 1DVU´2QHRIWKH3URSKHW¶VFRPSDQLRQV
,EQ µ$EEDDV H[SODLQHGWKLVYHUVHDVIROORZV³7KHVHZHUHLGROVRI1RDK¶VQDWLRQ
ZKLFK LQ WLPH HQGHGXSDPRQJWKH$UDEV7KHZHUHQDPHGDIWHUULJKWHRXVPHQ
DPRQJ 1RDK¶V SHRSOH:KHQWKHGLHG6DWDQLQVSLUHGWKHSHRSOHWRPDNHVWDWXHV
RIWKHPQDPHGDIWHUWKHP7KHVWDWXHVZHUHSODFHGLQWKHLUIDYRULWHPHHWLQJSODFHV
DV UHPLQGHUV RI ULJKWHRXVQHVV DQG QR RQH RIWKDWJHQHUDWLRQZRUVKLSSHGWKHP
+RZHYHU ZKHQ WKDW JHQHUDWLRQ GLHG RII DQG WKH SXUSRVH RI WKH VWDWXHV ZDV
IRUJRWWHQ 6DWDQ FDPH WR WKHLUGHVFHQGDQWVDQGWROGWKHPWKDWWKHLUSUHGHFHVVRUV
XVHG WR ZRUVKLS WKH VWDWXHV EHFDXVH LW ZDV GXH WR WKHP WKDW LW UDLQHG 7KH
GHVFHQGDQWV ZHUH IRROHG DQG EHJDQ WR ZRUVKLSWKHPDVLGROV@
7KHIROORZLQJ
JHQHUDWLRQVFRQWLQXHG@WRZRUVKLSWKHP´
$UWLVWV RIWHQ H[SUHVV D GHVLUH WR FUHDWH D ZRUN RIDUW³JUHDWHUWKDQOLIH´*UHDW
ZRUNV RI DUWEHFRPHVRVDFUHGWRDUWORYHUVWKHLUYDOXHPDH[FHHGWKDWRIKXPDQ
OLIH,IDQDUWPXVHXPZDVRQILUHDQGDQDUWORYHUVDZWKH0RQD/LVDKDQJLQJRQD
ZDOO DQG D FKLOG FDOOLQJRXWIRUKHOSVLWWLQJXQGHUQHDWKLWDQGKHRUVKHZDVRQO
DEOH WRVDYHRQHWKHFKLOGZRXOGOLNHOEHOHIWWRGLHDVDFFRUGLQJWRWKHDUWORYHU
WKHUHDUHPDQRWKHUFKLOGUHQEXWRQORQH0RQD/LVD
,6/$$0$1'02'(516,(1(
+LVWRULFDOO WKHUHZDVQRFRQIOLFWEHWZHHQVFLHQFHDQG,VODDPLFWHDFKLQJV7KHUHZDV
QR HTXLYDOHQW WR WKH 'DUN $JHV ZKLFK HQYHORSHG (XURSH GXH WR WKH KXUFK¶V
RSSRVLWLRQWRVFLHQWLILFDGYDQFHPHQW
7+(252) (92/87,21
7KLV WKHRUKDVEHFRPHVFLHQWLILFIDFWLQWKHPLQGVRIPRVWSHRSOHLQWKHZRUOGWRGD
+RZHYHULWUHPDLQVDWKHRUZKLFK KDVQHYHUEHHQSURYHQ
7KH IRVVLO UHFRUG GLVSURYHV WKH WKHRU RI (YROXWLRQ 7KH IRVVLOUHFRUGUHDGLO
VKRZV D VXFFHVVLRQ RI IRUPV PLQXWH VLQJOHFHOOHG RUJDQLVPHJEDFWHULDDQG
DOJDH@ 0XOWLFHOOHG LQYHUWHEUDWHV HJ VSRQJHV VQDLOV DQG MHOOILVK 132. ‹ % L O D O 3 K L O L S V F R P
0DPPDOV DQG ELUGV
![‹ % L O D O 3 K L O L S V F R P
7$%/(2)217(176
0$55,$*($1'',925(
3ROJDP
$UUDQJHG0DUULDJHV
7KH*XDUGLDQ
KLOG0DUULDJHV
0DUULDJHWR1RQ0XVOLPV
5DSHLQ0DUULDJH
9LROHQFHLQ0DUULDJH
'LYRUFH(DV
'LYRUFH$0DQ¶V5LJKW
$OLPRQ
:20(1¶65,*+76%,57+21752/
,$ERUWLRQ
,,RQWUDFHSWLRQ
3RSXODWLRQRQWURO
+LMDDE
,QKHULWDQFH
7ZR:LWQHVVHV
6HSDUDWH(GXFDWLRQ
5,0,1$/-867,(
0XUGHU
7KHIW
$GXOWHUDQG)RUQLFDWLRQ
+RPRVH[XDOLW
$SRVWDV
',(7$5/$:6
$OFRKRO
3RUN
7REDFFR
$QLPDO6ODXJKWHU
'RJV
7+($576
0XVLF
$UWDQG3KRWRJUDSK
,6/$$0$1'02'(516,(1(
7KHRURI(YROXWLRQ
7KH%LJ%DQJ
ORQLQJ
7HVW7XEH%DELHV
6H[FKDQJH2SHUDWLRQV
2UJDQ'RQDWLRQ
RVPHWLF6XUJHU
(XWKDQDVLD
$OLHQV
(2120,6
,QWHUHVW
,VODDPLF%DQNLQJ
,6/$$0$1'7(5525,60
,VODDP6SUHDGEWKH6ZRUG
6XLFLGH%RPELQJV
7HUURULVP
-LKDDG
6(76
6KL¶LVP
.KDDULMLWHV ,EDDGLWHV
,VPDLOLVP
'UX]H
1XVDLULVP
%DKDLVP
4DGLDQLVP
1DWLRQRI,VODP](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)