7+(/$1*8$*(2)6+$.

(63($5(

E\'$9,'&5<67$/

$1<HQFRXQWHUZLWK6KDNHVSHDUHRQSDJHRURQVWDJHSUHVHQWVXVZLWKWZRUHODWHGOLQJXLVWLFFKDOOHQJHV
DVHPDQWLFFKDOOHQJHZHKDYHWRZRUNRXWZKDWKLVODQJXDJHPHDQVLIZHDUHWRIROORZWKHSORWV
XQGHUVWDQG WKH GHVFULSWLRQV RI SHRSOH DQG SODFHV DQG WDNH LQ ZKDW KH LQ WKH SRHPV RU KLV
FKDUDFWHUVLQWKHSOD\VDUHVD\LQJDQGWKLQNLQJ
DSUDJPDWLFFKDOOHQJHZHKDYHWRDSSUHFLDWHWKHHIIHFWVWKDWKLVFKRLFHRIODQJXDJHFRQYH\VLIZH
DUHWRH[SODLQWKHVW\OHLQZKLFKKHRUKLVFKDUDFWHUVWDONVHHZK\RWKHUFKDUDFWHUVUHDFWLQWKH
ZD\WKH\GRDQGXQGHUVWDQGZKDWLVKDSSHQLQJWRRXULQWHOOHFWDQGHPRWLRQVDVZHUHDGZDWFKRU
OLVWHQWRWKHLUH[FKDQJHV


0RVW RI WKH WLPH ZH UHVSRQG WR WKHVH FKDOOHQJHV ZLWK XQVHOIFRQVFLRXV HDVH EHFDXVH WKH ODQJXDJH RI
6KDNHVSHDUH LV WKH VDPH RU RQO\ PLQLPDOO\ GLIIHUHQW IURP WKH ODQJXDJH ZH XVH WRGD\ :H QHHG QR
H[SODQDWRU\OLQJXLVWLFQRWHVRUVSHFLDOLVWGLFWLRQDULHVRUJUDPPDUVWRXQGHUVWDQGWKHVHPDQWLFVRIVXFK
OLQHVDV
6,5-2+11RZ+DOZKDWWLPHRIGD\LVLWODG"

,+HQU\,9


256,12
,IPXVLFEHWKHIRRGRIORYHSOD\RQ

7ZHOIWK1LJKW


+$0/(7
7REHRUQRWWREHWKDWLVWKHTXHVWLRQ

+DPOHW

7KHWKRXJKWPD\EHGHPDQGLQJXSRQRFFDVLRQEXWWKHODQJXDJHLVQREDUULHU
1RUGRZHQHHGDFRUUHVSRQGLQJVFKRODUO\DSSDUDWXVWRDSSUHFLDWHWKHSUDJPDWLFIRUFHXQGHUO\LQJVXFK
OLQHVDV
35,1&(+$55<>RI6LU-RKQ@7KDWYLOODLQRXVDERPLQDEOHPLVOHDGHURI\RXWK

,+HQU\,9


0$5,1$
0\QDPHVLULV0DULQD

3HULFOHV


6+</2&.>RIDMHZHO@,KDGLWRI/HDKZKHQ,ZDVDEDFKHORU

0HUFKDQWRI9HQLFH

,I ZH UHIHU WR WKH FRQWH[W LQ ZKLFK WKHVH OLQHV RFFXU ZH ILQG WKDW WKH\ DUH LQ WXUQ D MRFXODU LQVXOW D
PRPHQWRIUHYHODWLRQDQGDQRVWDOJLFUHIOHFWLRQEXWZHGRQRWQHHGWRORRNXSHGLWRULDOQRWHVWRGHFLGH
ZKHWKHUWRODXJKFU\RUV\PSDWKL]HDVZHWDNHLQZKDWLVVDLG
$W WKH RWKHU H[WUHPH WKHUH LV 6KDNHVSHDULDQ ODQJXDJH ZKLFK LV VR IDU UHPRYHG IURP RXU PRGHUQ
OLQJXLVWLFLQWXLWLRQVWKDWZLWKRXWVSHFLDOLVWKHOSZHDUHDWDORVVWRNQRZZKDWWRPDNHRILWVHPDQWLFDOO\
RUSUDJPDWLFDOO\:HKDYHSUREOHPVXQGHUVWDQGLQJZKDWLWPHDQVRUKRZZHVKRXOGUHDFWWRLWRUZK\LW
PDNHVFKDUDFWHUVEHKDYHLQWKHZD\WKH\GR
6,5-2+1>WR3ULQFH+DUU\@:KDWDSODJXHKDYH,WRGRZLWKDEXIIMHUNLQ"




,+HQU\,9


.(17>WR2VZDOG>\RX@OLO\OLYHUHGDFWLRQWDNLQJZKRUHVRQJODVVJD]LQJVXSHUVHUYLFHDEOHILQLFDOURJXH

7KH7UDJHG\RI.LQJ/HDU


6,572%<>WR6LU$QGUHZRIFKDOOHQJLQJ&HVDULR@,IWKRXWKRXVWKLPVRPHWKULFHLWVKDOOQRWEHDPLVV

7ZHOIWK1LJKW

7KHJHQHUDOPHDQLQJDQGIRUFHRIWKHVHWKUHHXWWHUDQFHVLVSODLQWKHILUVWLVDMRFXODUH[SRVWXODWLRQWKH
VHFRQG LV D VDYDJH FKDUDFWHU DVVDXOWWKH WKLUG LV DQ LQFLWHPHQWWREH LQVXOWLQJ %XWLIZH GRQRW KDYHD
FOHDU XQGHUVWDQGLQJ RI ZKDW WKH ZRUGV PHDQ RU WKH LPSDFW WKH\ FDUU\ ZH ZRXOG EH DW D VHULRXV
GLVDGYDQWDJHLIVRPHRQHZHUHWRLQWHUURJDWHXVRQWKHSRLQW:K\VKRXOGDEXIIMHUNLQXSVHW6LU-RKQ":H
QHHGWRNQRZWKH\ZHUHZRUQE\ODZRIILFHUV+RZUHOHYDQWDQLQVXOWLVILQLFDO"7KHZRUGPHDQWQLW
SLFNLQJ RU RYHUIXVV\  D GHVFULSWLRQ ZH PLJKW LPDJLQH ZKLFK D VWHZDUG ZRXOG ILQG SDUWLFXODUO\
LUULWDWLQJ:K\LVWKRXVXFKDQDVVHWLQPDNLQJDFKDOOHQJH"%HFDXVHFRXUWLHUVZRXOGQRUPDOO\DGGUHVV
HDFK RWKHU DV\RX DQG WKHLU VHUYDQWV DVWKRX FDOOLQJ D IHOORZFRXUWLHUWKRX WKUHH WLPHV ZRXOG EH
HVSHFLDOO\JDOOLQJ'LIILFXOWLHVRIWKLVNLQGKDYHFRPHDERXWEHFDXVHRIODQJXDJHFKDQJH
6KDNHVSHDUHZDVZULWLQJLQWKHPLGGOHRIDSHULRGRI(QJOLVKOLQJXLVWLFKLVWRU\FDOOHG(DUO\0RGHUQ

(QJOLVKZKLFKUXQVIURPDURXQGWRDURXQG,WZDVDQDJHZKHQWKHODQJXDJHZDVEHJLQQLQJWR
VHWWOH GRZQ DIWHU D WXUEXOHQW IHZ FHQWXULHV ZKHQ LWV VWUXFWXUH UDGLFDOO\ DOWHUHG IURP LWV $QJOR6D[RQ
FKDUDFWHU2OG(QJOLVKXVHGXQWLOWKHWZHOIWKFHQWXU\LVVRGLIIHUHQWIURP0RGHUQ(QJOLVKWKDWLWKDVWREH
DSSURDFKHG DV ZH ZRXOG D IRUHLJQ ODQJXDJH 0LGGOH (QJOLVK XVHG XQWLO WKH ILIWHHQWK FHQWXU\ LV YHU\
PXFK PRUH IDPLOLDU WR PRGHUQ H\HV DQG HDUV EXW ZH VWLOO IHHO WKDW D FRQVLGHUDEOH OLQJXLVWLF GLVWDQFH
VHSDUDWHVXVIURPWKRVHZKRZURWHLQLW&KDXFHUDQGKLVFRQWHPSRUDULHV'XULQJWKHILIWHHQWKFHQWXU\D
KXJH DPRXQW RI FKDQJH DIIHFWHG (QJOLVK SURQXQFLDWLRQ VSHOOLQJ JUDPPDU DQG YRFDEXODU\ VR WKDW
6KDNHVSHDUH ZRXOG KDYH IRXQG &KDXFHU DOPRVW DV GLIILFXOW WR UHDG DV ZH GR %XW EHWZHHQ -DFREHWKDQ
WLPHV DQG WRGD\ WKH FKDQJHV KDYH EHHQ YHU\ OLPLWHG$OWKRXJK ZH PXVW QRW XQGHUHVWLPDWH WKH SUREOHPV
SRVHGE\VXFKZRUGVDVEXIIMHUNLQILQLFDODQGWKRXZHPXVWQRWH[DJJHUDWHWKHPHLWKHU0RVWRI(DUO\
0RGHUQ(QJOLVKLVWKHVDPHDV0RGHUQ(QJOLVK7KHHYLGHQFHOLHVLQWKHIDFWWKDWWKHUHDUHPDQ\OLQHVRI
6KDNHVSHDUHZKHUHZHIHHOOLWWOHRUQROLQJXLVWLFGLVWDQFHDWDOO
%58786,IWKHUHEHDQ\LQWKLVDVVHPEO\DQ\GHDU
IULHQGRI&DHVDUVWRKLP,VD\WKDW%UXWXVORYHWR
&DHVDUZDVQROHVVWKDQKLV,IWKHQWKDWIULHQG
GHPDQGZK\%UXWXVURVHDJDLQVW&DHVDUWKLVLVP\
DQVZHUQRWWKDW,ORYHG&DHVDUOHVVEXWWKDW,ORYHG
5RPHPRUH+DG\RXUDWKHU&DHVDUZHUHOLYLQJ
DQGGLHDOOVODYHVWKDQWKDW&DHVDUZHUHGHDGWR
OLYHDOOIUHHPHQ"$V&DHVDUORYHGPH,ZHHSIRU
KLP$VKHZDVIRUWXQDWH,UHMRLFHDWLW$VKHZDV
YDOLDQW,KRQRXUKLP%XWDVKHZDVDPELWLRXV,
VOHZKLP

-XOLXV&DHVDU


7KDWLVZK\ZHFDOOWKHSHULRG(DUO\0RGHUQ(QJOLVKUDWKHUWKDQVD\/DWH0LGGOH(QJOLVK7KHQDPH
VXJJHVWVDFORVHQHVVWRWKHODQJXDJHRIWKHSUHVHQWGD\

:ULWLQJDQGVSHDNLQJ

7KH LGHQWLW\ EHWZHHQ (DUO\ 0RGHUQ DQG 0RGHUQ (QJOLVK FDQ EH LOOXVWUDWHG IURP DOO DUHDV RI ODQJXDJH
VWUXFWXUH  WKH ZULWLQJ V\VWHP WKH VRXQG V\VWHP WKH JUDPPDU WKH YRFDEXODU\ DQG WKH VWUXFWXUH RI WKH
VSRNHQ RU ZULWWHQ GLVFRXUVH +RZHYHU LW PXVW EH UHFRJQL]HG WKDW LQ WKH ILUVW WZR RI WKHVH DUHDV WKH
LGHQWLW\LVDQDUWHIDFWWKHUHVXOWRIFRQYHQWLRQDOHGLWRULDODQGSHUIRUPDQFHSUDFWLFH7KH(DUO\0RGHUQ
(QJOLVK V\VWHP RI VSHOOLQJ DQG SXQFWXDWLRQ LV DFWXDOO\ YHU\ GLIIHUHQW IURP WKDW ZKLFK ZH HQFRXQWHU LQ
0RGHUQ(QJOLVKEXWZHZRXOGQHYHUJXHVVIURPUHDGLQJPRVWHGLWLRQV-XVWXQGHUKDOIRIWKHZRUGVLQWKH
)LUVW )ROLR KDYH D VSHOOLQJ ZKLFK LV GLIIHUHQW IURP WKH RQH ZH NQRZ WRGD\$W WKH HQG RI WKH VL[WHHQWK
FHQWXU\WKHDOSKDEHWZDVVWLOOGHYHORSLQJWKHGLVWLQFWLRQVEHWZHHQX DQGYDQGEHWZHHQLDQGMZHUHQRW
IXOO\HVWDEOLVKHGVRWKDWZHILQGYQXLVLWHGDORQJVLGHYQYHQHUDEOHDQGMLJJHDORQJVLGHLLJJH&RQYHQWLRQV
RI ZRUGVSDFLQJ K\SKHQDWLRQ VHQWHQFH SXQFWXDWLRQ DQG FDSLWDOL]DWLRQ DOVR GLVSOD\HG PDQ\ GLIIHUHQFHV
IURPPRGHUQSUDFWLFH$QGVSHOOLQJZDVVWLOOH[WUHPHO\YDULDEOHDERXWKDOIWKHZRUGVZKLFKDSSHDULQ
WKH )ROLR DSSHDU LQ PRUH WKDQ RQH YHUVLRQ  VRPH ZLWK KDOI D GR]HQ RU PRUH DOWHUQDWLYHV$QFLHQW IRU
H[DPSOH DSSHDUV DVDQFLHQWDQWLHQWDXQFKLDQWDXQFKLHQWDXQFLDQWDXQFLHQW DQGDXQWLHQW 6SHOOLQJ
GLGQRWDFKLHYHLWVPRGHUQVWDQGDUGL]DWLRQXQWLOWKHHQGRIWKHHLJKWHHQWKFHQWXU\EXWPRVWHGLWRUVVLOHQWO\
PRGHUQL]H)ROLRDQG4XDUWRVSHOOLQJDQGSXQFWXDWLRQZLWKWKHDLPRIPDNLQJWKHWH[WVPRUHDFFHVVLEOHWR
WKHUHDGHU
1RUZRXOGZHHYHUJXHVVIURPWKHZD\LQZKLFKWKHSRHPVDUHUHDGDORXGDQGWKHSOD\VSHUIRUPHG
WKDWWKH(DUO\0RGHUQ(QJOLVKVRXQGV\VWHPWKHYRZHOVDQGFRQVRQDQWVWKHVWUHVVDQGLQWRQDWLRQZDVDW
D FRQVLGHUDEOH UHPRYH IURP PRGHUQ SURQXQFLDWLRQ ,W LV DQ DUHD ZKHUH SUHFLVH FRQFOXVLRQV DUH
XQDWWDLQDEOH $WWHPSWV WR UHFRQVWUXFW WKH ZD\ SHRSOH VSRNH EDVHG RQ D VWXG\ RI UK\WKPLFDO SDWWHUQV
UK\PHVVSHOOLQJVDQGFRQWHPSRUDU\SKRQHWLFGHVFULSWLRQVFDQWDNHXVVRIDUEXWOHDYHXVZHOOVKRUWRI
WKHFKDUDFWHURIWKHRULJLQDO)URPWKHQDWXUHRIWKHUK\WKPRIWKHSRHWLFOLQHWKHPHWUHIRUH[DPSOHZH
FDQGHGXFHWKDWDV\OODEOHQHHGVVHSDUDWHDUWLFXODWLRQDVLQWKHRSHQLQJOLQHVRI+HQU\9
2IRUDPXVHRIILUHWKDWZRXOGDVFHQG
7KHEULJKWHVWKHDYHQRILQYHQWLRQ


,WKDVWREHLQYHQVHHRQ6LPLODUO\LWLVWKHPHWUHZKLFKPRWLYDWHVFRQWUDVWLQJSURQXQFLDWLRQVRIWKH
VDPH ZRUG LQ VXFKFDVHV DV +HQFH EDQLVKHGLVEDQLVKHGIURPWKHZRUOG5RPHR DQG-XOLHW 
$QGIURPWKHZD\LQZKLFKZRUGVUK\PHRUSXQZHFDQGHGXFHDQHDUOLHUSURQXQFLDWLRQDVZKHQZLQGLV
PDGHWRUK\PHZLWKXQNLQG
%XWUK\PHVDQGSXQVGRQRWWHOOXVWKHZKROHVWRU\7KH\WHOOXVRQO\WKDWWZRZRUGVPXVWKDYHVRXQGHG
WKHVDPHWKH\GRQRWWHOOXVLQZKDWUHVSHFWVWKDWVDPHQHVVH[LVWV,QPDQ\FDVHVZHFDQFOHDUO\VHHD
SXQEXWVWLOOEHXQFOHDUKRZWRSURQRXQFHLW:KHQ&DVVLXVVD\V-XOLXV&DHVDU
1RZLVLW5RPHLQGHHGDQGURRPHQRXJK
:KHQWKHUHLVLQLWEXWRQHRQO\PDQ
WKHUH LV REYLRXVO\ VRPH ZRUGSOD\ LQWHQGHG  EXW LV5RPH EHLQJ SURQRXQFHG OLNH PRGHUQURRP RU
VKRXOGURRP EH OLNH PRGHUQ5RPH RU ZDV WKH (DUO\ 0RGHUQ (QJOLVK SURQXQFLDWLRQ VRPHZKHUH LQ
EHWZHHQ" 0RGHUQ SHUIRUPDQFHV LQ RULJLQDO YRLFHV EDVHG RQ UHVHDUFK E\ KLVWRULFDO OLQJXLVWV DUH
SUREDEO\ QRW WRR IDU DZD\ IURP WKH WUXWK  DW OHDVW DV IDU DV WKH YRZHOV FRQVRQDQWV DQG ZRUGVWUHVV
FRQWUDVWVDUHFRQFHUQHGEXWWKHUHUHPDLQPDQ\XQFHUWDLQDUHDV$QGWKHQDWXUHRIWKHG\QDPLFDVSHFWVRI
VSHHFK DW WKH WLPH WKH LQWRQDWLRQ DQG WRQH RI YRLFH LV D PDWWHU RI VSHFXODWLRQ 1R PRGHUQ DFFHQW

FRUUHVSRQGV WKRXJK WKH IDFW WKDW WKH U ZDV SURQRXQFHG DIWHU YRZHOV DV LQ ILUH GRHV WHQG WR UHPLQG
SHRSOH RI PRGHUQ UXUDO :HVW RI (QJODQG DFFHQWV ZKHQ WKH\ KHDU SHRSOH DWWHPSW D 6KDNHVSHDULDQ
SURQXQFLDWLRQ 7KHQ DV QRZ WKHUH ZRXOG KDYH EHHQ PDQ\ UHJLRQDO DQG FODVV YDULDWLRQV LQ DFFHQW
HVSHFLDOO\LQWKH/RQGRQDUHD
'HVSLWH WKHLU OLPLWDWLRQV WKH UHFRQVWUXFWLRQ RI WKH (DUO\ 0RGHUQ (QJOLVK VRXQG V\VWHP LQGLFDWHV WKDW
SURQXQFLDWLRQ QRUPV KDYH FKDQJHG JUHDWO\ LQ WKH SDVW IRXU KXQGUHG \HDUV 0RGHUQ SHUIRUPDQFHV DQG
UHDGLQJVWKRXJKDOPRVWDOZD\VLQWURGXFHSUHVHQWGD\VRXQGVZLWKRXWFRPPHQWDOORZLQJRQO\IRUFDVHV
ZKHUHDQHDUOLHUSURQXQFLDWLRQLVQHHGHGWRVDWLVI\WKHQHHGVRIWKHPHWUHRUWRFRQYH\WKHHIIHFWRIDSXQ
6R WKH VLWXDWLRQ ZLWK VSHDNLQJ LV YHU\ VLPLODU WR WKDW ZLWK ZULWLQJ PRVW PRGHUQ UHDGHUV DQG SOD\JRHUV
UHPDLQ XQDZDUH RI WKH H[WHQW RI WKH GLIIHUHQFH $QG WKLV LV ZK\ ZKHQ SHRSOH GLVFXVV WKH GLVWLQFWLYH
ODQJXDJH RI 6KDNHVSHDUH WKH PDLQ WRSLFV DUH XVXDOO\ UHVWULFWHG WR WKH WKUHH DUHDV RI ODQJXDJH WKDW DUH
SUHVHQWLQERWKJUDPPDUYRFDEXODU\DQGGLVFRXUVHFRQYHQWLRQV,QHDFKFDVHWKHQXPEHURIGLIIHUHQFHV
EHWZHHQ (DUO\ 0RGHUQ (QJOLVK DQG 0RGHUQ (QJOLVK LV UHODWLYHO\ VPDOO EXW VHYHUDO RI WKH SRLQWV RI
GLIIHUHQFHWXUQXSYHU\IUHTXHQWO\ZKLFKLVWKHFKLHIUHDVRQWKDWSHRSOHWKLQN6KDNHVSHDUHVODQJXDJHLV
PRUHGLIIHUHQWIURP0RGHUQ(QJOLVKWKDQLQIDFWLWLV

*UDPPDU

7KHJUDPPDWLFDOUXOHVRIWKHODQJXDJHKDYHOLWWOHFKDQJHGGXULQJWKHSDVWIRXUFHQWXULHVVRPHSHUFHQW
RI WKH ZRUG RUGHUV DQG ZRUG IRUPDWLRQV XVHG E\ 6KDNHVSHDUH DUH VWLOO LQ XVH WRGD\ $ JUDPPDWLFDO
SDUVLQJRIWKHSURVHH[WUDFWIURP-XOLXV&DHVDUDERYHZRXOGEULQJWROLJKWQHDUO\WZRKXQGUHGSRLQWVRI
VHQWHQFH FODXVH SKUDVH DQG ZRUG VWUXFWXUH EXW WKHUH LV RQO\ RQH FRQVWUXFWLRQ ZKLFK LV QRWLFHDEO\
GLIIHUHQW IURP 0RGHUQ (QJOLVK +DG \RX UDWKHU &DHVDU ZHUH OLYLQJ 7RGD\ ZH ZRXOG KDYH WR VD\
VRPHWKLQJOLNH:RXOG\RXUDWKHUKDYH&DHVDUOLYLQJ$OHVVVLJQLILFDQWGLIIHUHQFHLQWKDWSDVVDJHLV
WKHXVHRIWKHVXEMXQFWLYHDVLQ,IWKHUHEHDQ\LQWKLVDVVHPEO\ZKLFKLVXQXVXDOLQ%ULWLVKWKRXJKQRW
$PHULFDQ(QJOLVKWRGD\%XWDSDUWIURPWKLVDQGDOORZLQJIRUWKHUDWKHUIRUPDOUKHWRULFDOVW\OHWKHRWKHU
JUDPPDWLFDOXVDJHVLQWKHH[WUDFWDUHWKHVDPHDVWKRVHZHZRXOGXVHQRZ
7KHUHLVQRQHWKHOHVVDZLGHVSUHDGLPSUHVVLRQWKDW6KDNHVSHDUHVJUDPPDULVYHU\GLIIHUHQWIURPZKDW
ZH ILQG WRGD\ 7KH LPSUHVVLRQ DULVHV IRU WZR UHDVRQV EHFDXVH RI WKH ZD\ JUDPPDU RSHUDWHV ZLWKLQ
GLVFRXUVHDQGEHFDXVHRIWKHLQIOXHQFHRIPHWULFDOFRQVWUDLQWV

*5$00$5,1',6&2856(

*UDPPDULVGLIIHUHQWIURPYRFDEXODU\LQWKHZD\LWDSSHDUVLQFRQQHFWHGVSHHFKRUZULWLQJ$QLQGLYLGXDO
ZRUGPD\QRWEHSUHVHQWLQDSDUWLFXODUVSHHFKRUHYHQLQDZKROHVFHQHEXWFRUHJUDPPDWLFDOIHDWXUHV
DUHUHSHDWHGO\XVHG(DFKSDJHRIWKLVHVVD\ZLOOSURYLGHPDQ\H[DPSOHVRIWKHGHILQLWHDUWLFOHIRUPVRI
WKH YHUEWR EH SOXUDO HQGLQJV FRQMXQFWLRQV VXFK DVDQG DQG RWKHU HVVHQWLDO IHDWXUHV RI VHQWHQFH
FRQVWUXFWLRQ ,Q WKH VDPH ZD\ 6KDNHVSHDULDQ JUDPPDU UHSHDWHGO\ XVHV VHYHUDO (DUO\ 0RGHUQ (QJOLVK
IHDWXUHVVXFKDVROGHUSURQRXQVWKRX\H LQIOHFWLRQDOHQGLQJV HVW HWKDQGFRQWUDFWHG IRUPVLVW
RQW,WLVWKHIUHTXHQF\RIXVHRIVXFKIRUPVZKLFKFDQJLYHDJUDPPDWLFDOFRORXULQJWRDVSHHFKRIWHQ
RXWRIDOOSURSRUWLRQWRWKHLUOLQJXLVWLFVLJQLILFDQFHDVLQWKLVH[WUDFWIURP+DPOHW
+$0/(7WR/DHUWHV6ZRXQGVVKRZPHZKDW
WKRXOWGR
:RRWZHHSZRRWILJKWZRRWIDVWZRRWWHDUWK\VHOI
:RRWGULQNXSHLVHOHDWDFURFRGLOH"
,OOGRW'RVWWKRXFRPHKHUHWRZKLQH
7RRXWIDFHPHZLWKOHDSLQJLQKHUJUDYH"


:RRWRIWHQHGLWHGDVZRRWLVDFROORTXLDOIRUPRIZLOWRUZRXOGVWWKRX,WLVDUDUHOLWHUDU\XVDJHEXW
KHUHLWVUHSHWLWLRQDORQJZLWKWKHRWKHUFRQWUDFWHGIRUPVDQGWKHXVHRIWKRXGRPLQDWHVWKHLPSUHVVLRQZH
KDYH RI WKH JUDPPDU DQG JLYHV DQ DOLHQ DSSHDUDQFH WR D VSHHFK ZKLFK LQ DOO RWKHU UHVSHFWV LV
JUDPPDWLFDOO\LGHQWLFDOZLWK0RGHUQ(QJOLVK
6KRZPHZKDW\RXZLOOGR
:LOO\RXZHHSZLOO\RXILJKWZLOO\RXIDVWZLOO\RX
WHDU\RXUVHOI
:LOO\RXGULQNXSHLVHOHDWDFURFRGLOH"
,OOGRLW'R\RXFRPHKHUHWRZKLQH
7RRXWIDFHPHZLWKOHDSLQJLQKHUJUDYH"


6HYHUDO RWKHU GLVWLQFWLYH IHDWXUHV RI (DUO\ 0RGHUQ (QJOLVK JUDPPDU OLNHZLVH SUHVHQW OLWWOH GLIILFXOW\ WR
WKHPRGHUQUHDGHU$QH[DPSOHLVWKHZD\LQZKLFKDVHTXHQFHRIDGMHFWLYHVFDQDSSHDUERWKEHIRUHDQG
DIWHU WKH QRXQ WKH\ PRGLI\ DV LQ WKH 1XUVHV GHVFULSWLRQ RI 5RPHR  5RPHR DQG -XOLHW  DQ
KRQHVW JHQWOHPDQ DQG D FRXUWHRXV DQG D NLQG DQG D KDQGVRPH >  DQ KRQHVW FRXUWHRXV NLQG DQG
KDQGVRPH JHQWOHPDQ@ 2WKHU WUDQVSDUHQW ZRUGRUGHU YDULDWLRQV LQFOXGH WKH UHYHUVDO RI DGMHFWLYH DQG
SRVVHVVLYH SURQRXQ LQJRRG P\ ORUG RU WKH XVH RI WKH GRXEOH FRPSDUDWLYH LQ VXFK SKUDVHV DVPRUH
PLJKWLHU DQGPRVWSRRUHVW 0DQ\ LQGLYLGXDOZRUGV DOVR KDYH DGLIIHUHQW JUDPPDWLFDO XVDJH FRPSDUHG
ZLWKWRGD\VXFKDVOLNHOLNHO\DQGVRPHWKLQJVRPHZKDW
9HU\OLNHYHU\OLNH


,SUDWWOH_6RPHWKLQJWRRZLOGO\

+DPOHW




7HPSHVW

%XWKHUHWRRWKHPHDQLQJLVVXIILFLHQWO\FORVHWRPRGHUQLGLRPWKDWWKH\GRQRWSUHVHQWDGLIILFXOW\
7KHUHDUHMXVWDIHZW\SHVRIFRQVWUXFWLRQZKHUHWKHXVDJHLVVRIDUUHPRYHGIURPDQ\WKLQJZHKDYHLQ
0RGHUQ(QJOLVKWKDWZLWKRXWVSHFLDOVWXG\ZHDUHOLNHO\WRPLVVWKHPHDQLQJRIWKHVHQWHQFHDOWRJHWKHU
$QH[DPSOHLVWKHVRFDOOHGHWKLFDOGDWLYH(DUO\0RGHUQ(QJOLVKDOORZHGDSHUVRQDOSURQRXQDIWHUD
YHUE WR H[SUHVV VXFK QRWLRQV DV WR IRU E\ ZLWK RU IURP QRWLRQV ZKLFK WUDGLWLRQDO JUDPPDUV
ZRXOG VXEVXPH XQGHU WKH KHDGLQJV RI WKHGDWLYH DQGDEODWLYH FDVHV 7KH XVDJH FDQ EH VHHQ LQ VXFK
VHQWHQFHVDV
%XWKHDUPHWKLV7ZHOIWK1LJKW> %XWKHDUWKLVIURPPH@
-RKQOD\V\RXSORWV.LQJ-RKQ> -RKQOD\VSORWVIRU\RXWRIDOOLQWR@


,WLVDQXQIDPLOLDUFRQVWUXFWLRQWRPRGHUQH\HVDQGHDUVDQGLWFDQFRQIXVHDVD6KDNHVSHDULDQFKDUDFWHU
KLPVHOIHYLGHQFHV,Q7KH7DPLQJRIWKH6KUHZ3HWUXFFLRDQG*UXPLRDUULYHDW+RUWHQVLRVKRXVH

3(758&&,29LOODLQ,VD\NQRFNPHKHUHVRXQGO\
*580,2.QRFN\RXKHUHVLU":K\VLUZKDWDP,VLUWKDW,VKRXOGNQRFN\RXKHUHVLU"


3HWUXFFLR PHDQV .QRFN RQ WKH GRRU IRU PH EXW *UXPLR LQWHUSUHWV LW WR PHDQ DV LW ZRXOG LQ 0RGHUQ
(QJOLVKKLWPH,IZHGRQRWUHFRJQL]HWKHHWKLFDOGDWLYHLQ3HWUXFFLRVVHQWHQFHLQWKHILUVWSODFHZH
ZLOOPLVVWKHSRLQWRIWKHMRNHHQWLUHO\%XWWKHIDFWWKDW*UXPLRLVFRQIXVHGVXJJHVWVWKDWWKHXVDJHZDV
SUREDEO\DOUHDG\G\LQJRXWLQ6KDNHVSHDUHVWLPH

*5$00$5$1'0(75(

0RVWRIWKHUHDOO\XQIDPLOLDUGHYLDWLRQVIURP0RGHUQ(QJOLVKJUDPPDWLFDOQRUPVZKLFKZHHQFRXQWHULQ
6KDNHVSHDUH DULVH LQ KLV YHUVH ZKHUH KH EHQGV WKH FRQVWUXFWLRQ WR VXLW WKH GHPDQGV RI WKH PHWUH 7KH
DSSURDFKWREODQNYHUVHPRVWIDYRXUHGLQ(DUO\0RGHUQ(QJOLVKWRRNDVLWVQRUPDOLQHRIILYHPHWULFDO
XQLWV RU IHHW DSHQWDPHWHU ZLWK HDFK IRRW LQ LWV PRVW UHJXODU YHUVLRQ UHSUHVHQWHG E\ D WZRV\OODEOH
ZHDNVWURQJLDPELFVHTXHQFHDQGWKHZKROHOLQHHQGLQJLQDQDWXUDOSDXVHDQGFRQWDLQLQJQRLQWHUQDO
EUHDN$FFRUGLQJO\WKHOHDVWDPRXQWRIJUDPPDWLFDOEHQGLQJWDNHVSODFHZKHQDOLQHFRLQFLGHVZLWKWKH
PDMRUXQLWRIJUDPPDUWKHVHQWHQFH7KLVLVDFKDUDFWHULVWLFRIPXFKRI6KDNHVSHDUHVHDUO\ZULWLQJDVLQ
WKLVH[DPSOHIURP4XHHQ0DUJDUHW
%HZRHIRUPHPRUHZUHWFKHGWKDQKHLV
:KDWGRVWWKRXWXUQDZD\DQGKLGHWK\IDFH"
,DPQRORDWKVRPHOHSHUORRNRQPH
:KDWDUWWKRXOLNHWKHDGGHUZD[HQGHDI"
%HSRLVRQRXVWRRDQGNLOOWK\IRUORUQTXHHQ
7KH)LUVW3DUWRIWKH&RQWHQWLRQ

+HQU\9,


6HQWHQFHSHUOLQHLVWKHVLPSOHVWNLQGRIUHODWLRQVKLSEHWZHHQPHWUHDQGJUDPPDUDQGFODXVHSHUOLQH
LVQRWYHU\GLIIHUHQW6XFKJUDPPDWLFDOO\UHJXODUOLQHVDUHRIWHQVHHQLQWKH6RQQHWVZKHUHWKH\FRQYH\D
PHDVXUHGUK\WKPLFDOSDFH
:KLOVW,DORQHGLGFDOOXSRQWK\DLG
0\YHUVHDORQHKDGDOOWK\JHQWOHJUDFH
%XWQRZP\JUDFLRXVQXPEHUVDUHGHFD\HG
$QGP\VLFNPXVHGRWKJLYHDQRWKHUSODFH

6RQQHW


7KHSDFHRIUHDGLQJLQFUHDVHVZKHQWKHOLQHEUHDNVFRLQFLGHZLWKDPDMRUSRLQWRIJUDPPDWLFDOMXQFWLRQ
ZLWKLQDFODXVHVXFKDVEHWZHHQDVXEMHFWDQGYHUEYHUEDQGREMHFWRUQRXQDQGUHODWLYHFODXVH,QWKLV
QH[W H[DPSOH +HQU\ 9  EHFDXVH WKH ILUVW OLQH FRQWDLQV RQO\ WKH FODXVH VXEMHFW WKHUH LV D
G\QDPLFWHQVLRQDWWKHHQGZKLFKSURSHOVXVRQZDUGVWRUHDFKWKHYHUE
$QGJHQWOHPHQLQ(QJODQGQRZDEHG
6KDOOWKLQNWKHPVHOYHVDFFXUVHGWKH\ZHUHQRWKHUH


:H FDQ IHHO WKLV WHQVLRQ LI ZH VWRS RXU UHDGLQJ DW WKH HQG RI WKH ILUVW OLQH$ VXEMHFW DORQH LV OLNH DQ
XQUHVROYHGFKRUGFDOOLQJRXWIRUWKHUHVWRIWKHFODXVHWRSURYLGHVHPDQWLFFRKHUHQFH
(YHQZKHQDVHQWHQFHVWUHWFKHVRYHUVHYHUDOOLQHVWKHUHODWLRQVKLSEHWZHHQPHWUHDQGJUDPPDUFDQEH
UHJXODUDVZHFDQVHHLQWKLVVSHHFKIURPWKHGHSRVHGNLQJLQ5LFKDUG,,
,KDYHEHHQVWXG\LQJKRZ,PD\FRPSDUH
7KLVSULVRQZKHUH,OLYHXQWRWKHZRUOG

$QGIRUEHFDXVHWKHZRUOGLVSRSXORXV
$QGKHUHLVQRWDFUHDWXUHEXWP\VHOI
,FDQQRWGRLW


7KHOLQHHQGLQJVDUHDOOPDMRUSRLQWVRIJUDPPDWLFDOMXQFWLRQVRWKDWHDFKOLQHPDNHVDVHSDUDWHVHPDQWLF
SRLQW%\NHHSLQJWKHOLQHVFRKHUHQWLQWKLVZD\WKHPHDQLQJSURFHHGVLQDVHULHVRIVPRRWKUHJXODUVWHSV
YHU\DSSURSULDWHIRUDVSHHFKZKRVHXQLTXHSURSHUWLHVKDYHEHHQUHSHDWHGO\SUDLVHG1RRWKHUVSHHFK
LQ6KDNHVSHDUHPXFKUHVHPEOHVWKLVRQHIRULWVTXLHWO\PHGLWDWLYHWRQH)UDQN.HUPRGH6KDNHVSHDUHV
/DQJXDJHS7KHHIIHFWZRXOGEHWRWDOO\ORVWLIWKHOLQHVGLGQRWFRLQFLGHZLWKWKHVHPDMRUXQLWVRI
JUDPPDUDVLQWKLVUHZULWLQJ
7RGD\,KDYHEHHQVWXG\LQJKRZ,PD\
&RPSDUHWKLVSULVRQZKHUH,OLYHXQWR
7KHZRUOG


6XFKOLQHVQRORQJHUKDYHDVHPDQWLFFRKHUHQFH*UDPPDWLFDOVWUXFWXUHVDUHEHJXQEXWOHIWXQILQLVKHGWKH
DX[LOLDU\YHUEPD\LVVSOLWRIIIURPLWVPDLQYHUEFRPSDUHWKHSUHSRVLWLRQXQWRLVVSOLWRIIIURPLWVQRXQ
SKUDVHWKHZRUOG7KDWLVQRWWKHPHWULFDOV\QWD[RITXLHWPHGLWDWLRQ2QWKHRWKHUKDQGLWLVSUHFLVHO\WKLV
VRUWRIGLVUXSWLRQZKLFKLVQHHGHGZKHQSRUWUD\LQJDFRQIXVHGPLQGLQWKLVFDVH&ORWHQV&\PEHOLQH

,NQRZKHUZRPHQDUHDERXWKHUZKDW
,I,GROLQHRQHRIWKHLUKDQGV"7LVJROG
:KLFKEX\VDGPLWWDQFHRIWLWGRWK\HDDQG
PDNHV
'LDQDVUDQJHUVIDOVHWKHPVHOYHV\LHOGXS
7KHLUGHHUWRWKVWDQGRWKVWHDOHUDQGWLVJROG
:KLFKPDNHVWKHWUXHPDQNLOOHGDQGVDYHVWKHWKLHI
1D\VRPHWLPHKDQJVERWKWKLHIDQGWUXHPDQ:KDW
&DQLWQRWGRDQGXQGR",ZLOOPDNH
2QHRIKHUZRPHQODZ\HUWRPHIRU
,\HWQRWXQGHUVWDQGWKHFDVHP\VHOI


+HUH VHYHUDO OLQHV EUHDN LQ XQH[SHFWHG SODFHV DQ HIIHFW SDUWO\ FDSWXUHG E\ WKH WUDGLWLRQDO QRWLRQ RI
FDHVXUD  LQ WKH PLGGOH RI D WZRSDUW FRQMXQFWLRQ ZKDW _,I DIWHU DQ LQWHUURJDWLYH ZRUG ZKDW DQG
EHWZHHQ D FRQMXQFWLRQ DQG LWV FODXVH IRU _,  DQG FODXVHV EHJLQ DW WKH HQG RI OLQHV LQVWHDG RI DW WKH
EHJLQQLQJ &ORWHQ FRPPHQWV , \HW QRW XQGHUVWDQG WKH FDVH P\VHOI 7KH GLVUXSWLRQ EHWZHHQ PHWUH DQG
JUDPPDUVXJJHVWVDVPXFK
7KHPRUHWKHPHWUHIRUFHVJUDPPDWLFDOGHYLDWLRQVZLWKLQDOLQHWKHPRUHGLIILFXOWWKHOLQHZLOOEHWR
XQGHUVWDQG,QWKLVQH[WH[DPSOH5LFKDUG,,WKUHHXQH[SHFWHGWKLQJVKDSSHQDWRQFHWKHGLUHFW
REMHFWLVSODFHGDWWKHIURQWWKHLQGLUHFWREMHFWFRPHVEHIRUHWKHYHUEDQGDQDGMHFWLYHLVFRRUGLQDWHG
DIWHUWKHQRXQ7KHJORVVHGYHUVLRQLVPXFKFOHDUHUEXWLWLVXQPHWULFDO)UHHVSHHFKDQGIHDUOHVV,WR
WKHHDOORZ> ,DOORZWRWKHHIUHHDQGIHDUOHVVVSHHFK@6RPHWLPHVWKHFKDQJHLQZRUGRUGHUFDQFDWFKXV
RIIJXDUG DV LQ WKLV H[DPSOH IURP&RQWHQWLRQ  VSRNHQ E\<RXQJ &OLIIRUG DIWHU VHHLQJ KLV
GHDGIDWKHUDQGYRZLQJUHYHQJH1RWKLQJKHVD\VZLOOHVFDSHKLVZUDWK
7HDUVYLUJLQDO
6KDOOEHWRPHHYHQDVWKHGHZWRILUH

$QGEHDXW\WKDWWKHW\UDQWRIWUHFODLPV
6KDOOWRP\IODPLQJZUDWKEHRLODQGIOD[


$FDVXDOUHDGLQJRIWKHWKLUGOLQHZRXOGVXJJHVWWKDWDW\UDQWRIWHQUHFODLPV>LHWDPHVVXEGXHV@EHDXW\
EXWWKLVPDNHVQRVHQVH5DWKHUWKHPHDQLQJLVEHDXW\WKDWRIWHQWDPHVWKHW\UDQWZLOODFWDVIXHOWRP\
ZUDWK7\UDQWLVQRWWKHJUDPPDWLFDOVXEMHFWRIUHFODLPVEXWLWVREMHFW2QO\E\SD\LQJFDUHIXODWWHQWLRQ
WRWKHPHDQLQJFDQZHZRUNWKLVRXWDQGIRUWKLVZHQHHGWRWKLQNRIWKHVSHHFKDVDZKROHDQGVHHLWLQ
LWV GLVFRXUVH FRQWH[W 0HWUH LV RIWHQ WKRXJKW RI VLPSO\ DV D SKRQHWLF SKHQRPHQRQ  DQ DHVWKHWLF VRXQG
HIIHFWHLWKHUKHDUGGLUHFWO\RULPDJLQHGZKHQUHDGLQJ,QIDFWLWLVPXFKPRUH0HWULFDOFKRLFHVDOZD\V
KDYHJUDPPDWLFDOVHPDQWLFRUSUDJPDWLFDVZHOODVGUDPDWLFFRQVHTXHQFHV

/LQHYDULDWLRQV

0DQ\VSHFLDOHIIHFWVDUHDFKLHYHGE\GHSDUWLQJIURPPHWULFDOQRUPVPDNLQJOLQHVORQJHURUVKRUWHUWKDQ
XVXDOMX[WDSRVLQJGLIIHUHQWNLQGVRIIHHWRUEUHDNLQJOLQHVLQXQH[SHFWHGSODFHV6KRUWOLQHVSURYLGHDQ
LPSRUWDQW W\SH RI H[DPSOH :KHWKHU WKHVH DUH LQWURGXFHG E\ DQ HGLWRULDO RU DQ DXWKRULDO H\H WKHUH LV
DOZD\VDVHPDQWLFRUSUDJPDWLFHIIHFWZKLFKQHHGVWREHFDUHIXOO\DVVHVVHG7KHVKRUWOLQHIRUH[DPSOH
LVRIWHQXVHGWRPDUNDVLJQLILFDQWPRPHQWLQDVSHHFKHVSHFLDOO\DSRLQWHGFRQWUDVWDVLQWKLVH[DPSOH
IURP2WKHOOR
7KH0RRULVRIDIUHHDQGRSHQQDWXUH
7KDWWKLQNVPHQKRQHVWWKDWEXWVHHPWREHVR
$QGZLOODVWHQGHUO\EHOHGE\WKQRVH
$VDVVHVDUH


/LQHVRIILYHIHHWQRUPDOO\H[SUHVVWKUHHRUIRXUVHPDQWLFDOO\VSHFLILFSRLQWV,QWKLVH[DPSOHWKHILUVWWZR
OLQHVHDFKFRQWDLQIRXUOH[LFDOLWHPV0RRUIUHHRSHQQDWXUHWKLQNPDQKRQHVWVHHP DQGWKHWKLUG
KDVWKUHHWHQGHUO\OHDGQRVH%\FRQWUDVWWKHVHPDQWLFFRQWHQWRIWKHIRXUWKOLQHLVDVLQJOHOH[LFDOLWHP
DVVZKLFKQRZKDVWRILOODVHPDQWLFVSDFHZHQRUPDOO\DVVRFLDWHZLWKILYHIHHW6HYHUDOSURVRGLF
PHDQV DUH DYDLODEOH WR HQDEOH DQ DFWRU WR DFKLHYH WKLV VXFK DV VORZLQJ WKH WHPSR DQG UK\WKP RI WKH
V\OODEOHVRUYDU\LQJWKHOHQJWKRIWKHILQDOSDXVH
6SOLWOLQHVDILYHIRRWOLQHGLVWULEXWHGRYHUPRUHWKDQRQHVSHDNHUPXVWVLPLODUO\EHLQWHUSUHWHGLQ
VHPDQWLFRUSUDJPDWLFWHUPV)URPDVHPDQWLFSRLQWRIYLHZWKHVSDFHRIWKHILYHIRRWOLQHLVEHLQJILOOHG
ZLWKPRUHFRQWHQWWKDQLVXVXDO)URPDSURVRGLFSRLQWRIYLHZWKHPRUHVZLWFKLQJEHWZHHQFKDUDFWHUV
WKHIDVWHUWKHSDFH7KHVHIDFWRUVRSHUDWHPRVWQRWLFHDEO\LQWKHUDUHFDVHVZKHUHDOLQHLVVSOLWLQWRILYH
LQWHUDFWLYH XQLWV DV LQ WKHVFHQH LQ.LQJ-RKQZKHQWKH.LQJLQWLPDWHVWR+XEHUWWKDW$UWKXU
VKRXOGEHNLOOHG


)URPDSUDJPDWLFSRLQWRIYLHZWKHUHLVDQLPPHGLDWHLQFUHDVHLQWKHWHPSRRIWKHLQWHUDFWLRQZKLFKLQ
WXUQ FRQYH\V DQ LQFUHDVHG VHQVH RI GUDPDWLF PRPHQW 2Q VHYHUDO RFFDVLRQV WKH VSOLWOLQHV LGHQWLI\ D
FULWLFDOSRLQWLQWKHGHYHORSPHQWRIWKHSORWDVLQWKLVH[DPSOHIURP7KH:LQWHUV7DOH

6RPHWLPHV WKH VZLWFKLQJ UDLVHV WKH HPRWLRQDO WHPSHUDWXUH RI WKH LQWHUDFWLRQ ,Q WKLV+DPOHW H[DPSOH
ZHVHHWKHLQFUHDVHGWHPSRFRQYH\LQJRQHSHUVRQVDQJHULPPHGLDWHO\IROORZHGE\DQRWKHU
SHUVRQVDQ[LHW\


$QLQFUHDVHLQWHPSRLVDOVRDQLGHDOPHFKDQLVPIRUFDUU\LQJUHSDUWHH7KHUHDUHVHYHUDOH[DPSOHVLQ7KH
7DPLQJRIWKH6KUHZZKHQ3HWUXFFLRDQG.DWKHULQHILUVWPHHWDVKHUH


,Q D VHTXHQFH OLNH WKH IROORZLQJ 7KH 7UDJHG\ RI .LQJ /HDU  WKHUH LV PRUH WKDQ RQH WHPSR
FKDQJH


+HUH LI ZH H[WHQG WKH PXVLFDO DQDORJ\ ZH KDYH D UHODWLYHO\ OHQWR WZRSDUW H[FKDQJH WKHQ DQ
DOOHJULVVLPRIRXUSDUWH[FKDQJHWKHQDWZRSDUWDOOHJURDQGILQDOO\DWZRSDUWUDOOHQWDQGROHDGLQJLQWR
/HDUVQH[WVSHHFK7KHPHWULFDOGLVFLSOLQHLQVXFKFDVHVLVGRLQJIDUPRUHWKDQSURYLGLQJDQDXGLWRU\
UK\WKPLWLVPRWLYDWLQJWKHG\QDPLFRIWKHLQWHUDFWLRQEHWZHHQWKHFKDUDFWHUV

'LVFRXUVHLQWHUDFWLRQ

7KH DLP RI VW\OLVWLF DQDO\VLV LV XOWLPDWHO\ WR H[SODLQ WKH FKRLFHV WKDW D SHUVRQ PDNHV LQ VSHDNLQJ RU
ZULWLQJ,I,ZDQWWRH[SUHVVWKHWKRXJKWWKDW,KDYHWZRORYHVWKHUHDUHPDQ\ZD\VLQZKLFK,FDQGRLW
LQ DGGLWLRQ WR WKDW SDUWLFXODU YHUVLRQ, FDQDOWHU WKH VHQWHQFH VWUXFWXUH,WVWZR ORYHVWKDW, KDYH  WKH
ZRUG VWUXFWXUH ,YH WZR ORYHV WKH ZRUG RUGHU 7ZR ORYHV , KDYH RU WKH YRFDEXODU\ ,YH JRW WZR
ORYHV , ORYH WZR SHRSOH RU RSW IRU D PRUH UDGLFDO UHSKUDVLQJ 7KHUH DUH WZR ORYHV LQ P\ OLIH  7KH
FKRLFH ZLOO EH PRWLYDWHG E\ WKH XVHUV VHQVH RI WKH GLIIHUHQW QXDQFHV HPSKDVHV UK\WKPV DQG VRXQG
SDWWHUQVFDUULHGE\WKHZRUGV,QFDVXDOXVDJHOLWWOHWKRXJKWZLOOEHJLYHQWRWKHPHULWVRIWKHDOWHUQDWLYHV
FRQYH\LQJWKHJLVWLVHQRXJK%XWLQDQDUWLVWLFFRQVWUXFWHDFKOLQJXLVWLFGHFLVLRQFRXQWVIRULWDIIHFWVWKH
VWUXFWXUHDQGLQWHUSUHWDWLRQRIWKHZKROH,WLVUK\WKPDQGHPSKDVLVWKDWJRYHUQWKHFKRLFHPDGHIRUWKH
RSHQLQJOLQHRI6RQQHW7ZRORYHV,KDYHRIFRPIRUWDQGGHVSDLU$VWKHDLPLVWRZULWHDVRQQHWLW
LVFULWLFDOWKDWWKHFKRLFHVDWLVILHVWKHGHPDQGVRIWKHPHWUHEXWWKHUHLVPRUHWRWKHFKRLFHWKDQUK\WKP
IRU,KDYHWZRORYHVZRXOGDOVRZRUN7KHLQYHUWHGZRUGRUGHUFRQYH\VWZRRWKHUHIIHFWVLWSODFHVWKH
WKHPHRIWKHSRHPLQWKHIRUHIURQWRIRXUDWWHQWLRQDQGLWJLYHVWKHOLQHDVHPDQWLFEDODQFHORFDWLQJWKH
VSHFLILFZRUGVDWWKHEHJLQQLQJDQGWKHHQG
(YDOXDWLQJWKHOLWHUDU\RUGUDPDWLFLPSDFWRIWKHHIIHFWVFRQYH\HGE\WKHYDULRXVDOWHUQDWLYHVFDQWDNH
XSPDQ\KRXUVRIGLVFXVVLRQEXWWKHILUVWVWHSLQVW\OLVWLFDQDO\VLVLVWRHVWDEOLVKZKDWWKRVHHIIHFWVDUH
7KHFOHDUHVWDQVZHUVHPHUJHZKHQWKHUHLVDIUHTXHQWDQGSHUFHSWLEOHFRQWUDVWEHWZHHQSDLUVRIRSWLRQV
DQG WKLV LV WKH EHVW ZD\ RI DSSURDFKLQJ WKH DQDO\VLV RI GLVFRXUVH LQWHUDFWLRQ LQ WKH SOD\V ([DPSOHV
LQFOXGHWKHFKRLFHEHWZHHQWKHSURQRXQVWKRXDQG\RXDQGWKHFKRLFHEHWZHHQYHUVHDQGSURVH

7+(&+2,&(%(7:((1WKRX$1'\RX

,Q2OG(QJOLVKWKRXWKHHWKLQHHWFZDVVLQJXODUDQG\RXZDVSOXUDO%XWGXULQJWKHWKLUWHHQWKFHQWXU\
\RXVWDUWHGWREHXVHGDVDSROLWHIRUPRIWKHVLQJXODUSUREDEO\EHFDXVHSHRSOHFRSLHGWKH)UHQFKZD\
RIWDONLQJZKHUHYRXVZDVXVHGLQWKDWZD\(QJOLVKWKHQEHFDPHOLNH)UHQFKZKLFKKDVWXDQGYRXVERWK
SRVVLEOH IRU VLQJXODUV DQG WKDW DOORZHG D FKRLFH 7KH QRUP ZDV IRU\RX WR EH XVHG E\ LQIHULRUV WR
VXSHULRUVVXFKDVFKLOGUHQWRSDUHQWVRUVHUYDQWVWRPDVWHUVDQGWKRXZRXOGEHXVHGLQUHWXUQ%XWWKRX
ZDV DOVR XVHG WR H[SUHVV VSHFLDO LQWLPDF\ VXFK DV ZKHQ DGGUHVVLQJ *RG ,W ZDV DOVR XVHG ZKHQ WKH
ORZHUFODVVHVWDONHGWRHDFKRWKHU7KHXSSHUFODVVHVXVHG\RXWRHDFKRWKHUDVDUXOHHYHQZKHQWKH\
ZHUHFORVHO\UHODWHG
6R ZKHQ VRPHRQH FKDQJHV IURPWKRXWR\RXLQDFRQYHUVDWLRQRUWKHRWKHUZD\URXQGLWFRQYH\VD
GLIIHUHQW SUDJPDWLF IRUFH ,W ZLOO H[SUHVV D FKDQJH RI DWWLWXGH RU D QHZ HPRWLRQ RU PRRG $V DQ
LOOXVWUDWLRQZHFDQREVHUYHWKHVZLWFKLQJRISURQRXQVDVDQLQGH[RI5HJDQVVWDWHRIPLQGZKHQVKHWULHV
WRSHUVXDGH2VZDOGWROHWKHUVHH*RQHULOVOHWWHU7KH7UDJHG\RI.LQJ/HDU6KHEHJLQV
ZLWKWKHH[SHFWHG\RXEXWVZLWFKHVWRWKHHZKHQVKHWULHVWRXVHKHUFKDUP
5(*$1
:K\VKRXOGVKHZULWHWR(GPRQG"0LJKWQRW\RX
7UDQVSRUWKHUSXUSRVHVE\ZRUG"%HOLNH
6RPHWKLQJV,NQRZQRWZKDW,OOORYHWKHHPXFK
/HWPHXQVHDOWKHOHWWHU
26:$/'
0DGDP,KDGUDWKHU
5(*$1
,NQRZ\RXUODG\GRHVQRWORYHKHUKXVEDQG


2VZDOGV KHVLWDWLRQ PDNHV KHU UHWXUQ WR\RX DJDLQ DQG VKH VRRQ GLVPLVVHV KLP LQ DQ DEUXSW VKRUW OLQH
ZLWKWKLVSURQRXQEXWZKHQKHUHVSRQGVHQWKXVLDVWLFDOO\WRKHUQH[WUHTXHVWVKHRSWVDJDLQIRUWKHH
,SUD\GHVLUHKHUFDOOKHUZLVGRPWRKHU
6RIDUH\RXZHOO
,I\RXGRFKDQFHWRKHDURIWKDWEOLQGWUDLWRU
3UHIHUPHQWIDOOVRQKLPWKDWFXWVKLPRII
26:$/'
:RXOG,FRXOGPHHWKLPPDGDP,VKRXOGVKRZ
:KDWSDUW\,GRIROORZ
5(*$1
)DUHWKHHZHOO


+HUHZHKDYHWKHHEHLQJXVHGDVDQLQGH[RIZDUPWKRIIHHOLQJTXLWHWKHUHYHUVHRIWKHLQVXOWLQJXVHRI
WKRXEHWZHHQQREOHVQRWHGHDUOLHU6LPLODUO\WKRXIRUPVFDQEHXVHGDVDQLQGH[RILQWLPDF\DVZKHQ
*UD]LDQR DQG %DVVDQLR PHHW 7KH 0HUFKDQW RI 9HQLFH   7KH\ EHJLQ ZLWK WKH H[SHFWHG
H[FKDQJHRI\RX
*5$=,$12
,KDYHDVXLWWR\RX

%$66$1,2
<RXKDYHREWDLQHGLW
*5$=,$12
<RXPXVWQRWGHQ\PH,PXVWJRZLWK\RXWR
%HOPRQW
%$66$1,2
:K\WKHQ\RXPXVW


%XW %DVVDQLR WKHQ WDNHV *UD]LDQR RQ RQH VLGH DQG JLYHV KLP VRPH DGYLFH 7KH PRUH LQWLPDWH WRQH
LPPHGLDWHO\PRWLYDWHVDSURQRXQVZLWFK%XWKHDUWKHH*UD]LDQR,7KRXDUWWRRZLOGWRRUXGHDQGEROG
RI YRLFH$QG KH FRQWLQXHV ZLWKWKRXIRUPV IRUWKHUHVW RIKLV VSHHFK :KHQ*UD]LDQR VZHDUV KH ZLOO
UHIRUPWKHUHODWLRQVKLSUHWXUQVWRWKHQRUPDOSXEOLFPRGHRIDGGUHVV
%$66$1,2:HOOZHVKDOOVHH\RXUEHDULQJ


$QGWKH\\RXHDFKRWKHUIRUWKHUHVWRIWKHVFHQH

7+(&+2,&(%(7:((19(56($1'3526(

6KDNHVSHDUHVSUDFWLFHLQXVLQJYHUVHRUSURVHYDULHGJUHDWO\DWGLIIHUHQWVWDJHVLQKLVFDUHHU7KHUHDUH
SOD\V ZULWWHQ DOPRVW HQWLUHO\ LQ YHUVH HJ5LFKDUG ,, DQG RWKHUV DOPRVW HQWLUHO\ LQ SURVH HJ7KH
0HUU\ :LYHV RI :LQGVRU  EXW PRVW SOD\V GLVSOD\ D PL[WXUH RI WKH WZR PRGHV ZLWK FHUWDLQ W\SHV RI
VLWXDWLRQRUFKDUDFWHUSURPSWLQJRQHRUWKHRWKHU9HUVHZKHWKHUUK\PHGRUXQUK\PHGEODQNYHUVH
LVW\SLFDOO\DVVRFLDWHGZLWKDKLJKVW\OHRIODQJXDJHSURVHZLWKDORZVW\OH7KLVLVSDUWO\DPDWWHURI
FODVV GLVWLQFWLRQ +LJKVWDWXV SHRSOH VXFK DV QREOHV DQG JHQHUDOV WHQG WR XVH WKH IRUPHU ORZVWDWXV
SHRSOH VXFK DV FORZQV DQG WDYHUQIUHTXHQWHUV WHQG WR XVH WKH ODWWHU WKRXJK LQ D YHUVH SOD\ VXFK DV
5LFKDUG,, HYHQ WKHJDUGHQHUV WDON YHUVH 8SSHUFODVVSHRSOHDOVR KDYH DQDELOLW\ WR DFFRPPRGDWHWR
WKRVHRIORZHUFODVVXVLQJSURVHVKRXOGRFFDVLRQDULVH,FDQGULQNZLWKDQ\WLQNHULQKLVRZQODQJXDJH
GXULQJP\OLIHVD\V3ULQFH+DUU\WR3RLQV,+HQU\,9$QGORZHUFODVVSHRSOHZKRPRYH
LQFRXUWFLUFOHVVXFKDVPHVVHQJHUVDQGJXDUGVDUHDEOHWRXVHDSRHWLFVW\OHZKHQWDONLQJWRWKHLUEHWWHUV
7KLVORZHUFODVVDELOLW\WRDFFRPPRGDWHXSZDUGVFDQWDNHOLVWHQHUVE\VXUSULVH7KHULRWRXVFLWL]HQVDW
WKH EHJLQQLQJ RI&RULRODQXV DOO XVH SURVH EXW ZKHQ 0HQHQLXV UHDVRQV ZLWK WKHP LQ HOHJDQW YHUVH WKH
VSRNHVPDQJUDGXDOO\VOLSVLQWRYHUVHWRRPXFKWR0HQHQLXVDPD]HPHQW)RUHPHWKLVIHOORZVSHDNV

7KH GLVWLQFWLRQ EHWZHHQ KLJK DQG ORZ VW\OH LV DOVR DVVRFLDWHG ZLWK VXEMHFW PDWWHU )RU H[DPSOH
H[SUHVVLRQVRIURPDQWLFORYHDUHPDGHLQYHUVHUHJDUGOHVVRIWKHVSHDNHUVVRFLDOFODVV
,IWKRXUHPHPEHUHVWQRWWKHVOLJKWHVWIROO\
7KDWHYHUORYHGLGPDNHWKHHUXQLQWR
7KRXKDVWQRWORYHG
2ULIWKRXKDVWQRWVDWDV,GRQRZ
:HDULQJWK\KHDUHULQWK\PLVWUHVVSUDLVH
7KRXKDVWQRWORYHG


7KLVHOHJDQWSODLQWLVIURP6LOYLXVDVKHSKHUG$V<RX/LNH,W EXWLWFRXOGKDYHFRPHIURP
DQ\ SULQFHO\ ORYHU &RQYHUVHO\ ORZ VXEMHFW PDWWHU VXFK DV ULEDOGU\ WHQGV WR PRWLYDWH SURVH HYHQ
ZKHQ VSRNHQ E\ XSSHUFODVV SHRSOH :KHQ +DPOHW PHHWV 5RVHQFUDQW] DQG *XLOGHQVWHUQ +DPOHW
WKH\H[FKDQJHDSURVHJUHHWLQJWKHQWKHWZRYLVLWRUVRSHQWKHFRQYHUVDWLRQDWDIRUPDOSRHWLF
OHYHO%XW+DPOHWEULQJVWKHPGRZQWRHDUWKZLWKDMRFXODUFRPPHQWDQGWKHULEDOGIROORZXSFRQILUPV
WKDW WKH FRQYHUVDWLRQ LV WR VWD\ LQ SURVH ,W LV D ZLGHVSUHDG HGLWRULDO SUDFWLFH WR SULQW SURVH OLQHV
LPPHGLDWHO\ DIWHU WKH VSHDNHUV QDPH DQG YHUVH OLQHV EHQHDWK LW +RZHYHU GLVFUHSDQFLHV EHWZHHQ
GLIIHUHQWHGLWLRQVVKRZWKDWWKHGLVWLQFWLRQLVQRWDOZD\VHDV\WRGUDZ
+$0/(70\H[OOHQWJRRGIULHQGV+RZGRVWWKRX*XLOGHQVWHUQ"$K5RVHQFUDQW]JRRGODGV
KRZGR\HERWK"
526(1&5$17=
$VWKHLQGLIIHUHQWFKLOGUHQRIWKHHDUWK
*8,/'(167(51
+DSS\LQWKDWZHDUHQRWRYHUKDSS\
2Q)RUWXQHVFDSZHDUHQRWWKHYHU\EXWWRQ
+$0/(71RUWKHVROHVRIKHUVKRH"
526(1&5$17=1HLWKHUP\ORUG
+$0/(77KHQ\RXOLYHDERXWKHUZDLVWRULQWKHPLGGOHRIKHUIDYRXU"

*8,/'(167(51)DLWKKHUSULYDWHVZH


,Q D SOD\ ZKHUH WKHXSSHUFODVV SURWDJRQLVWVWHQGWRVSHDN SURVHLWWDNHVPRPHQWV RI VSHFLDO GUDPDWR
PRWLYDWH D VZLWFK WR YHUVH DV LQ WKH VFHQH ZKHQ &ODXGLR DFFXVHV +HUR RI EHLQJ XQIDLWKIXO 0XFK $GR
$ERXW 1RWKLQJ  %HDWULFH XVHV QRWKLQJ EXW SURVH LQ WKH ILUVW KDOI RI WKLV SOD\ EXW OHIW DORQH DIWHU
RYHUKHDULQJ WKH QHZV WKDW %HQHGLFN ORYHV KHU VKH H[SUHVVHV KHU QHZO\ KHLJKWHQHG VHQVLELOLWLHV LQ WHQ
OLQHVRIUK\PLQJYHUVH,Q2WKHOORWKH'XNHRI9HQLFHVSHDNVRQO\YHUVHLQGHEDWLQJ
WKHTXHVWLRQRI2WKHOORVORYHIRU'HVGHPRQDEXWZKHQKHKDVWRUHFRXQWWKHDIIDLUVRIVWDWHKHUHVRUWVWR
SURVH
7KHVHQRUPVH[SODLQRQO\DSURSRUWLRQRIWKHZD\VWKDWYHUVHDQGSURVHDUHXVHGLQWKHSOD\V7KHUHDUH
PDQ\LQVWDQFHVZKHUHSHRSOHVZLWFKEHWZHHQRQHDQGWKHRWKHUDQGZKHQWKH\GRZHPXVWDVVXPHLWLV
IRUDUHDVRQ6DQHDGXOWVGRQRWFKDQJHWKHLUVW\OHUDQGRPO\)RUH[DPSOHLQ0XFK$GR$ERXW1RWKLQJ
%HQHGLFNLVWULFNHGLQWRWKLQNLQJWKDW%HDWULFHORYHVKLPVRZKHQKHQH[WPHHWVKHUKHXVHV
YHUVHDVDVLJQRIWKHQHZUHODWLRQVKLS%HDWULFHKRZHYHUDWWKLVSRLQWXQDZDUHRIDQ\VXFKWKLQJUHMHFWV
WKHVW\OLVWLFRYHUWXUHDQGKHUUHEXWWDOIRUFHV%HQHGLFNWRUHWUHDWLQWRSURVH
%($75,&($JDLQVWP\ZLOO,DPVHQWWRELG\RXFRPHLQWRGLQQHU
%(1(',&.
)DLU%HDWULFH,WKDQN\RXIRU\RXUSDLQV
%($75,&(,WRRNQRPRUHSDLQVIRUWKRVHWKDQNVWKDQ\RXZRXOGWDNHSDLQVWRWKDQNPH,ILWKDG
EHHQSDLQIXO,ZRXOGQRWKDYHFRPH
%(1(',&.<RXWDNHSOHDVXUHWKHQLQWKHPHVVDJH"


7KLVLVSURVHDVSXWGRZQ$QGZHVHHLWDJDLQLQWKHRSHQLQJVFHQHRI7LPRQ RI$WKHQV
ZKHUH 7LPRQ DQG KLV IODWWHUHUV KDYH EHHQ HQJDJHG LQ D JHQWHHO FRQYHUVDWLRQ LQ YHUVH DERXW VRFLDO DQG
DUWLVWLF PDWWHUV 7KH DUULYDO RI WKH F\QLFDO$SHPDQWXV ORZHUV WKH WRQH DQG  DQWLFLSDWLQJ WURXEOH  WKH
VSHDNHUVVZLWFKLQWRSURVH
7,021
/RRNZKRFRPHVKHUH
:LOO\RXEHFKLG"
-(:(//(5:HZLOOEHDUZLWK\RXUORUGVKLS
0(5&+$17+HOOVSDUHQRQH


7LPRQ WULHV WR PDLQWDLQ WKH KLJK WRQH E\ DGGUHVVLQJ$SHPDQWXV LQ YHUVH DQG$SHPDQWXV VKRZV KH LV
FDSDEOH RI WKH KLJK VW\OH E\ UHVSRQGLQJ LQ NLQG EXW KLV DFHUELF FRPPHQWV LQWURGXFH D ORZ WRQH ZKLFK
IRUFHVDOOWRUHWUHDWLQWRSURVH
7,021
*RRGPRUURZWRWKHHJHQWOH$SHPDQWXV
$3(0$1786
7LOO,EHJHQWOHVWD\WKRXIRUWK\JRRGPRUURZ
:KHQWKRXDUW7LPRQVGRJDQGWKHVHNQDYHV
KRQHVW
7,021
:K\GRVWWKRXFDOOWKHPNQDYHV"7KRXNQRZVW
WKHPQRW
$3(0$1786$UHWKH\QRW$WKHQLDQV"

7,021<HV
$3(0$17867KHQ,UHSHQWQRW
-(:(//(5<RXNQRZPH$SHPDQWXV"
$3(0$1786
7KRXNQRZVW,GR,FDOOHGWKHHE\WK\QDPH


7KHRQHOLQHSRHWLFULSRVWHWRWKHMHZHOOHUXQGHUWKHFLUFXPVWDQFHVKDVWREHVHHQDVDPRFNLQJDGRSWLRQ
RIWKHKLJKVW\OH
,IYHUVHLVDVLJQRIKLJKVW\OHWKHQZHZLOOH[SHFWDVSLUDQWVWRSRZHUWRXVHLWWRPDNHWKHLUFDVHDQG
GLVJXLVHG QRELOLW\ WR XVH LW ZKHQ WKHLU WUXH FKDUDFWHU QHHGV WR DSSHDU $Q H[DPSOH RI WKH ILUVW LV LQ
&RQWHQWLRQZKHUH-DFN&DGHLVFODLPLQJWREHRQHRI0RUWLPHUVWZRVRQVDQGWKXVWKHKHLUWRWKHWKURQH
+HDQGKLVIHOORZUHEHOVVSHDNWRHDFKRWKHULQSURVH:KHQ6WDIIRUGDQGKLVEURWKHUDUULYHWKH\VKRZ
WKHLUVRFLDOGLVWDQFHE\DGGUHVVLQJWKHUHEHOVLQYHUVH%XW&DGHLVSOD\LQJKLVSDUWZHOODQGUHVSRQGVLQ
YHUVH DV ZRXOG EHILW VRPHRQH ZLWK EUHHGLQJ +LV UKHWRULF LV VR LPSUHVVLYH LQGHHG WKDW LW HYHQ
LQIOXHQFHVWKH%XWFKHUZKRUHVSRQGVXQFKDUDFWHULVWLFDOO\ZLWKDOLQHRIYHUVHRIKLVRZQ
7KHHOGHURIWKHPEHLQJSXWWRQXUVH
:DVE\DEHJJDUZRPDQVWROQDZD\
$QGLJQRUDQWRIKLVELUWKDQGSDUHQWDJH
%HFDPHDEULFNOD\HUZKHQKHFDPHWRDJH
+LVVRQDP,GHQ\LWDQ\RXFDQ
%87&+(5
1D\WLVWRRWUXHWKHUHIRUHKHVKDOOEHNLQJ


$Q H[DPSOH RI GLVJXLVHG QRELOLW\ LV LQ3HULFOHV  II ZKHQ JRYHUQRU /\VLPDFKXV DUULYHV DW D
EURWKHOZLWKWKHLQWHQWRIVHGXFLQJ0DULQDZKRPKHWKLQNVWREHDSURVWLWXWH7KHFRQYHUVDWLRQEHWZHHQ
KLP 0DULQD DQG WKH EURWKHONHHSHUV LV HQWLUHO\ LQ SURVH /HIW DORQH ZLWK KHU KRZHYHU /\VLPDFKXV
EHJLQVFRXUWHRXVO\LQYHUVHDQGLVWDNHQDEDFNZKHQ0DULQDVKRZVVKHFDQUHVSRQGLQWKHVDPHZD\DQG
PRUHRYHUXVHWKHPRGHWRSRZHUIXOUKHWRULFDOHIIHFW,GLGQRWWKLQN_7KRXFRXOGVWKDYHVSRNHVRZHOO
KHVD\VDVKHUHSHQWVRIKLVLQWHQWLRQ0DULQDNQRZVWKHSRZHURISRHWU\DQGXVHVLWDJDLQODWHULQWKH
VFHQHWRSHUVXDGH%RXOWWRWDNHKHUVLGH
7KH VZLWFK IURP YHUVH WR SURVH RU YLFH YHUVD FDQ DOVR JLYH XV LQVLJKW LQWR WKH VWDWH RI PLQG RI D
VSHDNHU,QWKHFDVHRI3DQGDUXV7URLOXVDQG&UHVVLGD WKHVZLWFKWRSURVHVLJQDOVFRQIXVLRQ
$HQHDVFDOOVRQ3DQGDUXVHDUO\RQHPRUQLQJXUJHQWO\QHHGLQJWRWDONWR7URLOXVZKRKDVVHFUHWO\VSHQW
WKH QLJKW ZLWK &UHVVLGD 7KH IRUPDO HQFRXQWHU DQG VHULRXV VXEMHFW PDWWHU PRWLYDWH YHUVH %XW$HQHDV
GLUHFWQHVVFDWFKHV3DQGDUXVRIIJXDUGZKRFRQIXVHGO\ODSVHVLQWRSURVH
$(1($6
,VQRW3ULQFH7URLOXVKHUH"
3$1'$586
+HUH":KDWVKRXOGKHGRKHUH"
$(1($6
&RPHKHLVKHUHP\ORUG'RQRWGHQ\KLP
,WGRWKLPSRUWKLPPXFKWRVSHDNZLWKPH
3$1'$586,VKHKHUHVD\\RX",WVPRUHWKDQ,NQRZ
,OOEHVZRUQ)RUP\SDUW,FDPHLQODWH:KDW
VKRXOGKHGRKHUH"


6RPHWKLQJVLPLODUKDSSHQVWR3RORQLXVZKHQKHJHWVFRQIXVHG+DPOHW+HKDVEHHQJLYLQJ
5H\QDOGRDVHULHVRILQVWUXFWLRQVLQYHUVHEXWWKHQKHORVHVWKHWUDFNRIZKDWKHLVVD\LQJ
$QGWKHQVLUGRHVDWKLVDGRHV
ZKDWZDV,DERXWWRVD\"%\WKHPDVV,ZDVDERXWWR
VD\VRPHWKLQJ:KHUHGLG,OHDYH"


$QG5H\QDOGRUHPLQGVKLPLQYHUVH
,Q WKH FDVH RI %HQYROLR DQG 0HUFXWLR PHHWLQJ LQ5RPHR DQG -XOLHW  ZH KDYH WZR YHU\
GLIIHUHQW VWDWHV RI PLQG VLJQDOOHG E\ WKH WZR PRGHV 7KH WHPSHUDWH %HQYROLR EHJLQV LQ YHUVH EXW KH
FDQQRWZLWKVWDQGWKHRQVODXJKWRI0HUFXWLRVSURVH
%(192/,2
,SUD\WKHHJRRG0HUFXWLROHWVUHWLUH
7KHGD\LVKRWWKH&DSHOVDUHDEURDG
$QGLIZHPHHWZHVKDOOQRWVFDSHDEUDZO
)RUQRZWKHVHKRWGD\VLVWKHPDGEORRGVWLUULQJ
0(5&87,27KRXDUWOLNHRQHRIWKHVHIHOORZVWKDWZKHQKHHQWHUVWKHFRQILQHVRIDWDYHUQFODSV
PHKLVVZRUGXSRQWKHWDEOHDQGVD\V*RGVHQGPHQRQHHGRIWKHHDQGE\WKHRSHUDWLRQRIWKH
VHFRQGFXSGUDZVKLPRQWKHGUDZHUZKHQLQGHHGWKHUHLVQRQHHG
%(192/,2$P,OLNHVXFKDIHOORZ"


$QGWKH\FRQWLQXHLQSURVH
,Q DQRWKHU PHHWLQJ EHWZHHQ &DVVLXV DQG %UXWXV LQ-XOLXV&DHVDU  WKH VZLWFKLQJ EHWZHHQ
YHUVH DQG SURVH DFWV DV D JXLGH WR WKH WHPSHUDWXUH RI WKH LQWHUDFWLRQ 7KH\ DUH DFFXVLQJ HDFK RWKHU RI
YDULRXVZURQJV)RUWKHPRVWSDUWWKH\VSHDNYHUVHWRHDFKRWKHUEXWZKHQWKH\DUHRQWKHYHUJHRIORVLQJ
WKHLUWHPSHUWKH\VZLWFKLQWRSURVH
&$66,86%UXWXVED\QRWPH
,OOQRWHQGXUHLW<RXIRUJHW\RXUVHOI
7RKHGJHPHLQ,DPDVROGLHU,
2OGHULQSUDFWLFHDEOHUWKDQ\RXUVHOI
7RPDNHFRQGLWLRQV
%58786*RWR\RXDUHQRW&DVVLXV
&$66,86,DP
%58786,VD\\RXDUHQRW
&$66,86
8UJHPHQRPRUH,VKDOOIRUJHWP\VHOI


$QG&DVVLXVUHVXPHVLQYHUVHXQWLORQFHDJDLQ%UXWXVGULYHVKLPWRH[SORGHLQWRSURVH
&$66,86
:KHQ&DHVDUOLYHGKHGXUVWQRWWKXVKDYHPRYHGPH
%58786
3HDFHSHDFH\RXGXUVWQRWVRKDYHWHPSWHGKLP
&$66,86,GXUVWQRW"
%587861R

&$66,86:KDWGXUVWQRWWHPSWKLP"
%58786)RU\RXUOLIH\RXGXUVWQRW
&$66,86
'RQRWSUHVXPHWRRPXFKXSRQP\ORYH

3HRSOH ZHUH HYLGHQWO\ YHU\ VHQVLWLYH WR WKHVH PRGDOLW\ FKDQJHV DQG VRPHWLPHV WKH WH[W H[SOLFLWO\
UHFRJQL]HVWKHFRQWUDVWVLQYROYHG,Q$QWRQ\DQG&OHRSDWUDWKHVXPPLWPHHWLQJEHWZHHQ&DHVDU$QWRQ\
DQG WKHLU DGYLVRUV LV FDUULHG RQ LQ IRUPDO YHUVH %XW ZKHQ (QREDUEXV LQWHUYHQHV ZLWK D GRZQWRHDUWK
FRPPHQW LQ SURVH KH UHFHLYHV D VKDUS UHEXNH IURP$QWRQ\ 7KRX DUW D VROGLHU RQO\ 6SHDN QR PRUH
$QGLQ $V<RX/LNH,W 2UODQGRDUULYHVLQWKHPLGGOHRIDSURVHFRQYHUVDWLRQLQZKLFK-DTXHV
LVKDSSLO\H[SRXQGLQJKLVPHODQFKRO\WR*DQ\PHGHDND5RVDOLQG2UODQGRDGGUHVVHV*DQ\PHGHZLWKD
OLQH RI YHUVH ZKLFK LPPHGLDWHO\ XSVHWV -DTXHV 1D\ WKHQ *RG EZL\RX DQ \RX WDON LQ EODQN YHUVH
$QG-DTXHVSURPSWO\OHDYHV

9RFDEXODU\

9RFDEXODU\ LV WKH DUHD RI ODQJXDJH OHDVW VXEMHFW WR JHQHUDOL]DWLRQ 8QOLNH WKH JUDPPDU SURVRG\ DQG
GLVFRXUVHSDWWHUQVRIDODQJXDJHZKLFKDUHVXEMHFWWRJHQHUDOUXOHVWKDWFDQEHOHDUQHGWKRURXJKO\LQD
UHODWLYHO\VKRUWSHULRGRIWLPHWKHOHDUQLQJRIYRFDEXODU\LVODUJHO\DGKRFDQGRILQGHILQLWHGXUDWLRQ%\
FRQWUDVWZLWKWKHIHZKXQGUHGSRLQWVRISURQXQFLDWLRQJUDPPDUDQGGLVFRXUVHVWUXFWXUHZKLFKZHQHHGWR
FRQVLGHUZKHQGHDOLQJZLWK6KDNHVSHDUHVODQJXDJHWKHQXPEHURISRLQWVRIYRFDEXODU\UXQLQWRVHYHUDO
WKRXVDQGV$VDUHVXOWPRVWERRNVGROLWWOHPRUHWKDQSURYLGHDQDOSKDEHWLFDOJORVVDU\RIWKHLWHPVZKLFK
SRVHDGLIILFXOW\RIFRPSUHKHQVLRQ
7KHTXHVWLRQRIWKHVL]HRI6KDNHVSHDUHVYRFDEXODU\DQGLWVLPSDFWRQWKHGHYHORSPHQWRIWKH(QJOLVK
ODQJXDJH KDV DOZD\V FDSWXUHG SRSXODU LPDJLQDWLRQ EXW DW WKH FRVW RI GLVWUDFWLQJ UHDGHUV IURP PRUH
LPSRUWDQWDVSHFWVRIKLVOH[LFDOFUHDWLYLW\,WLVQHYHUWKHQXPEHURIZRUGVWKDWPDNHVDQDXWKRUEXWKRZ
WKRVH ZRUGV DUH XVHG%HFDXVH RI6KDNHVSHDUHVOLWHUDU\DQGGUDPDWLF EULOOLDQFH LW LV XVXDOO\DVVXPHG
WKDWKLVYRFDEXODU\PXVWKDYHEHHQYDVWDQGWKDWKLVOH[LFDOLQQRYDWLRQVKDGDPDMRUDQGSHUPDQHQWHIIHFW
RQWKHODQJXDJH,QIDFWLWWUDQVSLUHVWKDWWKHQXPEHURIZRUGVLQKLVOH[LFRQLJQRULQJYDULDWLRQVRIWKH
NLQGGHVFULEHGEHORZZDVVRPHZKHUHEHWZHHQDQGTXLWHVPDOOE\SUHVHQWGD\VWDQGDUGV
WKRXJKSUREDEO\PXFKODUJHUWKDQKLVFRQWHPSRUDULHV$QGWKHQXPEHURIKLVOH[LFDOLQQRYDWLRQVLQVRIDU
DV WKHVH FDQ EH LGHQWLILHG UHOLDEO\ DUH SUREDEO\ QR PRUH WKDQ  OHVV WKDQ KDOI RI ZKLFK KDYH
UHPDLQHGLQWKHODQJXDJH1RRWKHUDXWKRUPDWFKHVWKHVHLPSUHVVLYHILJXUHVEXWWKH\QRQHWKHOHVVSURYLGH
RQO\DVPDOOHOHPHQWRIWKHRYHUDOOVL]HRIWKH(QJOLVKOH[LFRQZKLFKHYHQLQ(DUO\0RGHUQ(QJOLVKWLPHV
ZDVDURXQG
7KHXQFHUWDLQW\LQWKHSHUVRQDOWRWDODULVHVEHFDXVHLWLVQRWHDV\WRVD\ZKDWVKRXOGEHFRXQWHG0XFK
GHSHQGVRQWKHVHOHFWLRQRIWH[WVDQGWKHDPRXQWRIWH[WUHFRJQL]HGDVWKHSUHVHQWHGLWLRQLOOXVWUDWHVZLWK
.LQJ /HDU DQG+DPOHW DV ZHOO DV RQ HGLWRULDO SROLF\ WRZDUGV VXFK PDWWHUV DV K\SKHQDWLRQ ,Q .HQWV
KDUDQJXHRI2VZDOG7KH7UDJHG\RI.LQJ/HDUIRUH[DPSOHWKHQXPEHURIZRUGVYDULHVGHSHQGLQJRQ
ZKLFKFRPSRXQGVWKHHGLWRUVUHFRJQL]H,QWKLVH[WUDFW7KH&RPSOHWH:RUNVLGHQWLILHVE\
FRPSDULVRQWKH)LUVW)ROLRVKRZV

&RPSOHWH:RUNV DEDVHSURXGVKDOORZEHJJDUO\WKUHHVXLWHGKXQGUHGSRXQGILOWK\ZRUVWHGVWRFNLQJ
NQDYHDOLO\OLYHUHGDFWLRQWDNLQJZKRUHVRQJODVVJD]LQJVXSHUVHUYLFHDEOHILQLFDOURJXHRQHWUXQN
LQKHULWLQJVODYH
)LUVW)ROLRDEDVHSURXGVKDOORZEHJJHUO\WKUHHVXLWHGKXQGUHGSRXQGILOWK\ZRRVWHGVWRFNLQJNQDXH
D /LOO\OLXHUHG DFWLRQWDNLQJ ZKRUHVRQ JODVVHJD]LQJ VXSHUVHUXLFHDEOH ILQLFDOO 5RJXH RQH 7UXQNH
LQKHULWLQJVODXH

2WKHU HGLWLRQV UHDFK GLIIHUHQW WRWDOV RQH DOORZV D WKUHHHOHPHQW FRPSRXQG ZRUG ILOWK\ZRUVWHG
VWRFNLQJ3HQJXLQDQRWKHUDIRXUHOHPHQWWKUHHVXLWHGKXQGUHGSRXQG$UGHQ
7KHQXPEHURIZRUGVLQDSHUVRQVOH[LFRQUHIHUVWRWKHLWHPVZKLFKZRXOGDSSHDUDVKHDGZRUGVLQD
GLFWLRQDU\RQFHJUDPPDWLFDOPHWULFDODQGRUWKRJUDSKLFYDULDWLRQVDUHGLVFRXQWHG)RUH[DPSOHLQWKH
)LUVW )ROLR ZH ILQG WKH IROORZLQJ IRUPVWDNH WDNHV WDNHWK WDNLQJ WDNQ WDNHQ WDNVW WDNW WRRN
WRRNVWWRRNHWRRNVW ,WZRXOGEHDEVXUGWRWKLQNRIWKHVHDVWZHOYHZRUGVVKRZLQJXVWZHOYHDVSHFWV
RI6KDNHVSHDUHVOH[LFDOFUHDWLYLW\7KH\DUHVLPSO\WZHOYHIRUPVRIWKHVDPHZRUGWDNH$QGWKHUHDUH
VHYHUDORWKHUW\SHVRIZRUGZKLFKZHZRXOGZDQWWRH[FOXGHZKHQGHFLGLQJRQWKHVL]HRI6KDNHVSHDUHV
YRFDEXODU\,WLVXVXDOWRH[FOXGHSURSHUQDPHVIURPDFRXQW%HQYROLR(DVWFKHDSXQOHVVWKH\KDYHD
PRUHJHQHUDOVLJQLILFDQFH(WKLRS3HRSOHXVXDOO\H[FOXGHWKHIRUHLJQZRUGVIURP/DWLQ)UHQFKHWF
WKRXJK WKHUH DUH SUREOHPV LQ GHFLGLQJ ZKDW WR GR ZLWK WKH IUDQJODLV XVHG LQ+HQU\ 9  :RUG FRXQWHUV

ZRQGHUZKDWWRGRDOVRZLWKRQRPDWRSRHLFZRUGVHJVDVHVHDQGKXPRURXVIRUPVVKRXOGZHFRXQW

PDODSURSLVPV VHSDUDWHO\ RU DV YDULDQWV RI WKHLU VXSSRVHG WDUJHWV HJDOOLFKROO\ DV D YDULDQW RI
PHODQFKRO\" ,I ZH LQFOXGH HYHU\WKLQJ ZH VKDOO DSSURDFK  LI ZH GR QRW ZH VKDOO ORRN IRU WKH
ORZHUILJXUHDURXQG
+RZ PDQ\ RI WKHVH ZRUGV KDYH JRQH RXW RI XVH RU FKDQJHG WKHLU PHDQLQJ EHWZHHQ (DUO\ 0RGHUQ
(QJOLVKDQGWRGD\"$UHFHQWJORVVDU\ZKLFKDLPVDWFRPSUHKHQVLYHQHVV6KDNHVSHDUHV :RUGV &U\VWDO
DQG&U\VWDOFRQWDLQVKHDGZRUGVZKLFKIDOOLQWRWKLVFDWHJRU\URXJKO\WKUHHTXDUWHUVRI
6KDNHVSHDUHVWRWDOZRUGVWRFN%XWWKLVGRHVQRWPHDQWKDWWKUHHTXDUWHUVRIWKHZRUGVLQ7KH&RPSOHWH
:RUNVUHSUHVHQW(DUO\0RGHUQ(QJOLVKIRUPDQ\RIWKHVHROGHUZRUGVDUHXVHGRQO\RQFHRUWZLFHLQWKH
FDQRQ,IZHSHUIRUPDQDOWHUQDWLYHFDOFXODWLRQQRWWKHQXPEHURIGLIIHUHQWZRUGVWKHZRUGW\SHVEXW
WKH QXPEHU RI LQVWDQFHV RI HDFK ZRUG WKH ZRUG WRNHQV ZH HQG XS ZLWK D UDWKHU GLIIHUHQW ILJXUH
$FFRUGLQJWR0DUYLQ6SHYDFNVFRQFRUGDQFHWKHUHDUHQHDUO\ZRUGWRNHQVLQWKHFDQRQDQG
WKLVWRWDOZRXOGLQFUHDVHWRRYHUZLWKWKHDGGLWLRQRI7KH7ZR1REOH.LQVPHQ7KHZRUG
W\SHVLQWKHJORVVDU\DUHDFWXDOO\UHSUHVHQWHGE\VRPHZRUGWRNHQVDQGLVRQO\SHUFHQW
RI7KLVLVZK\WKHOLNHOLKRRGRIHQFRXQWHULQJDQ(DUO\0RGHUQ(QJOLVKZRUGLQUHDGLQJDSOD\RU
D SRHP LV DFWXDOO\ TXLWH VPDOO 0RVW RI WKH ZRUGV LQ XVH WKHQ DUH VWLOO LQ XVH WRGD\ ZLWK QR FKDQJH LQ
PHDQLQJ
7KHDWWHQWLRQRIJORVVDU\ZULWHUVDQGWH[WHGLWRUVKDVDOZD\VIRFXVHGRQWKHGLIIHUHQWZRUGVEXWLWLV
LPSRUWDQW WR QRWH WKDW WKH\ GR QRW DOO SRVH WKH VDPH NLQG RI GLIILFXOW\$W RQH H[WUHPH WKHUH DUH PDQ\
ZRUGVZKLFKKDUGO\QHHGDQ\JORVVDWDOO
ZRUGVVXFKDVRIWSHUFKDQFHVXSPRUURZYLVDJHSDWHNQDYHZHQFK DQGPRUQZKLFKDUHVWLOO
XVHG WRGD\ LQ VSHFLDO FRQWH[WV VXFK DV SRHWU\ RU FRPLF DUFKDLVP RU ZKLFK VWLOO KDYH VRPH
UHJLRQDOXVHHJD\HDOZD\V
 ZRUGV ZKHUH D GLIIHUHQFH KDV DULVHQ VROHO\ EHFDXVH RI WKH GHPDQGV RI WKH PHWUH VXFK DV YDVW\
LQVWHDGRIYDVW7KHYDVW\ILHOGVRI)UDQFH+HQU\93URORJXHDQGRWKHUVXFKXVHVRIWKH \
VXIIL[VXFKDVVWHHS\DQGSOXPS\
 ZRUGV ZKHUH WKH IRUPDO GLIIHUHQFH LV WRR VPDOO WR REVFXUH WKH PHDQLQJ VXFK DVDIIULJKW
IULJKWHQDIHDUG DIUDLGVFDSH HVFDSHRSH RSHQGRZQWURG GRZQWURGGHQ DQG
GRJZHDU\GRJWLUHG
 ZRUGV ZKRVH HOHPHQWV DUH IDPLOLDU EXW WKH FRPELQDWLRQ LV QRW VXFK DVEHGD]]OH GLVPDVNHG
XQSHRSOHUDUHQHVVDQGVPLOLQJO\DQGVXFKSKUDVDOYHUEVDVSUHVVGRZQ RYHUEXUGHQVSHDN
ZLWKVSHDNWRDQGVKRYHE\SXVKDVLGH
LGLRPVDQGFRPSRXQGVZKRVHPHDQLQJLVWUDQVSDUHQWVXFKDVZKDWFKHHU"JR\RXUZD\VKLJK
PLQGHGDQGIROO\IDOOHQ


:HPLJKWDOVRLQFOXGHLQWKLVFDWHJRU\PRVWRIWKHFDVHVRIFRQYHUVLRQZKHUHDZRUGEHORQJLQJWRRQH
SDUWRIVSHHFKLVXVHGDVDGLIIHUHQWSDUWRIVSHHFK0RVWRIWHQDFRPPRQQRXQLVXVHGDVDYHUEDVLQ
JUDFHPHQRJUDFHQRUXQFOHPHQRXQFOH5LFKDUG,,EXWWKHUHDUHVHYHUDORWKHUSRVVLELOLWLHV
ZKLFK 6KDNHVSHDUH H[SORLWV VR PXFK WKDW OH[LFDO FRQYHUVLRQ KDV EHFRPH RQH RI WKH WUDGHPDUNV RI KLV
VW\OH
6KH3KRHEHVPH

$V<RX/LNH,W


7KRXORVHVWKHUHDEHWWHUZKHUHWRILQG

7KH7UDJHG\RI.LQJ/HDU


WKH\IURPWKHLURZQPLVGHHGVDVNDQFHWKHLUH\HV


ZKDWPDQ7KLUGVKLVRZQZRUWK

/XFUHFH

7KH7ZR1REOH.LQVPHQ

,QVXFKFDVHVDOWKRXJKWKHJUDPPDULVVWULNLQJO\GLIIHUHQWWKHOH[LFDOPHDQLQJLVQRW
$W WKH RWKHU H[WUHPH WKHUH DUH ZRUGV ZKHUH LW LV QRW SRVVLEOH WR GHGXFH IURP WKHLU IRUP ZKDW WKH\
PLJKW PHDQ  VXFK DVILQLFDO IDUGHO JUHFH DQGLQFRQ\ 7KHUH DUH DURXQG D WKRXVDQG VXFK LWHPV LQ
6KDNHVSHDUHDQGLQWKHVHFDVHVZHKDYHQRDOWHUQDWLYHEXWWROHDUQWKHPDVZHZRXOGQHZZRUGVLQD
IRUHLJQ ODQJXDJH $Q DOSKDEHWLFDO JORVVDU\ RI V\QRQ\PV LV QRW WKH EHVW ZD\ RI FDUU\LQJ RXW WKLV WDVN
KRZHYHU DV WKDW DUUDQJHPHQW GRHV QRW GLVSOD\ WKH ZRUGV LQ FRQWH[W DQG LWV$WR= VWUXFWXUH GRHV QRW
DOORZWKHUHDGHUWRGHYHORSDVHQVHRIWKHVHPDQWLFLQWHUUHODWLRQVKLSVLQYROYHG,WLVHVVHQWLDOWRVHHWKH
ZRUGV LQ WKHLU VHPDQWLF FRQWH[W IRU WKLV FDQ KHOS FRPSUHKHQVLRQ LQ D QXPEHU RI ZD\V 6KDNHVSHDUH
VRPHWLPHVSURYLGHVWKHKHOSKLPVHOI,Q2WKHOORZKHQWKH'XNHVD\VWR%UDEDQ]LR
/HWPHVSHDNOLNH\RXUVHOIDQGOD\DVHQWHQFH
:KLFKDVDJUHFHRUVWHSPD\KHOSWKHVHORYHUV
,QWR\RXUIDYRXU


ZHFDQJXHVVZKDWJUHFHPHDQVVWHSGHJUHHE\UHO\LQJRQWKHIROORZLQJQRXQ$QGLQ7ZHOIWK1LJKW
ZKHQ 6LU 7RE\ VD\V WR 0DULD 6KDOO , SOD\ P\ IUHHGRP DW WUD\WULS DQG EHFRPH WK\ ERQGVODYH"
ZHPD\KDYHQRLGHDZKDWWUD\WULSLV EXW WKH OLQJXLVWLFDVVRFLDWLRQ RUFROORFDWLRQ ZLWK
SOD\VKRZVWKDWLWPXVWEHVRPHNLQGRIJDPH&ROORFDWLRQVDOZD\VSURYLGHPDMRUFOXHVWRPHDQLQJ
$Q$WR=DSSURDFKSURYLGHVQRFOXHVDERXWWKHPHDQLQJUHODWLRQVKLSVEHWZHHQZRUGVDXQWLVDWRQH
HQGRIWKHDOSKDEHWDQGXQFOHDWWKHRWKHU$PRUHEHQHILFLDODSSURDFKWR6KDNHVSHDULDQYRFDEXODU\LVWR
OHDUQWKHQHZZRUGVLQWKHZD\WKDW\RXQJFKLOGUHQGRZKHQWKH\DFTXLUHDODQJXDJH:RUGVDUHQHYHU
OHDUQHG UDQGRPO\ RU DOSKDEHWLFDOO\ EXW DOZD\V LQ FRQWH[W DQG LQ SDLUV RU VPDOO JURXSV ,Q WKLV ZD\
PHDQLQJVUHLQIRUFHDQGLOOXPLQDWHHDFKRWKHULQVXFKZD\VDVWKHIROORZLQJ
 ZRUGV RI RSSRVLWH PHDQLQJ DQWRQ\PV EHVWPHDQHVW PLQHFRXQWHUPLQH D\ZDUG QD\ZDUG
FXUEHGXQFXUEHG
 ZRUGV RI LQFOXGHG PHDQLQJ K\SRQ\PV H[SUHVVLQJ WKH QRWLRQ WKDW DQ ; LV D NLQG RI <EDVV
YLROYLRO ERRWKRVHKRVH PRUWDUSLHFHPXUGHULQJSMHFHSLHFH JUDYHZHOO LOO
EHVHHPLQJEHVHHPLQJKDOIEORZQXQEORZQEORZQ
 ZRUGV RI WKH VDPH RU YHU\ VLPLODU PHDQLQJ V\QRQ\PV DGYDQWDJHYDQWDJH DUJDODUJR

FRPSWHUFRXQWHUFR]FRXVLQWKHVHZRUGVVRPHWLPHVFRQYH\DVW\OLVWLFFRQWUDVWVXFKDVLQIRUPDO
YVIRUPDO
 ZRUGV RI LQWHQVLI\LQJ PHDQLQJOXVW\RYHUOXVW\ SOHDFKHGOWKLFNSOHDFKHG IRUFHIRUFH  SHUIRUFH
UDVKKHDG\UDVKDPD]HGDOODPD]HG


,Q PDQ\ FDVHV LW LV VHQVLEOH WR JURXS ZRUGV LQWRVHPDQWLF ILHOGV VXFK DV FORWKLQJ ZHDSRQV RU
PRQH\ VR WKDW ZH FDQ PRUH FOHDUO\ VHH WKH UHODWLRQVKLSV EHWZHHQ WKHP 8QGHU WKH ODVW KHDGLQJ IRU
H[DPSOH ZH FDQ GLVWLQJXLVK EHWZHHQ GRPHVWLF FRLQV VXFK DVSHQQLHV DQG IRUHLJQ FRLQV VXFK DV
GXFDWVDQGZLWKLQWKHIRUPHUWRUHODWHLWHPVLQWHUPVRIWKHLULQFUHDVLQJYDOXHREROXVKDOISHQFHWKUHH
IDUWKLQJV SHQQ\ WZRSHQFH WKUHHSHQFH JURDW VL[SHQFH WHVWHUWHVWULO VKLOOLQJ QREOH DQJHO UR\DO
SRXQG7KDWLVKRZZHOHDUQDPRQHWDU\V\VWHPWRGD\DQGLWLVKRZZHFDQDSSURDFKWKHRQHZHILQGLQ
6KDNHVSHDUH
,QEHWZHHQWKHH[WUHPHVRIOH[LFDOIDPLOLDULW\DQGXQIDPLOLDULW\ZHILQGWKHPDMRULW\RI6KDNHVSHDUHV
GLIILFXOWZRUGVGLIILFXOWQRWEHFDXVHWKH\DUHGLIIHUHQWLQIRUPIURPWKHYRFDEXODU\ZHNQRZWRGD\EXW
EHFDXVH WKH\ KDYH FKDQJHG WKHLU PHDQLQJ ,Q PDQ\ FDVHV WKH PHDQLQJ FKDQJH LV YHU\ VOLJKW LQWHQW
LQWHQWLRQ JODVV ORRNLQJJODVV RU KDV OLWWOH FRQVHTXHQFH :KHQ -DFN &DGH VD\V , KDYH HDW QR PHDW
WKHVHILYHGD\V\HWFRPHWKRXDQGWK\ILYHPHQDQLI,GRQRWOHDYH\RXDOODVGHDGDVDGRRUQDLO,SUD\
*RG,PD\QHYHUHDWJUDVVPRUH&RQWHQWLRQPHDWLVKHUHEHLQJXVHGLQWKHJHQHUDOVHQVHRI
IRRGEXWLIZHZHUHWRLQWHUSUHWLWLQWKHPRGHUQUHVWULFWHGVHQVHRIIOHVKPHDWWKHHIIHFWZRXOGQRW
EHJUHDWO\GLIIHUHQW%\FRQWUDVWWKHUHDUHVHYHUDOKXQGUHGFDVHVZKHUHWKHPHDQLQJKDVFKDQJHGVRPXFK
WKDWLWZRXOGEHKLJKO\PLVOHDGLQJWRUHDGLQWKHPRGHUQVHQVH7KHVHDUHWKHIDOVHIULHQGVIDX[ DPLV
RIFRPSDUDWLYHVHPDQWLFVZRUGVLQDODQJXDJHZKLFKVHHPIDPLOLDUEXWDUHQRWDVEHWZHHQ)UHQFKDQG
(QJOLVK ZKHUHGHPDQGHU PHDQV DVN DQGGHPDQG LV WUDQVODWHG E\UHTXULU )DOVH IULHQGV LQ
6KDNHVSHDUH LQFOXGHQDXJKW\ ZLFNHGKHDY\ VRUURZIXO KXPRURXV PRRG\ VDG VHULRXV
HFVWDV\ PDGQHVVRZHRZQPHUHO\WRWDOO\DQGHQYLRXVPDOLFLRXV,QVXFKFDVHVZHQHHG
WR SD\ FDUHIXO DWWHQWLRQ WR WKH FRQWH[W ZKLFK ZH PXVW DOZD\V DOORZ WR RYHUUXOH WKH LQWUXVLRQ RI WKH
LUUHOHYDQWPRGHUQPHDQLQJ:HFDQVHHWKLVRSHUDWLQJIRUH[DPSOHLQ7KH7UDJHG\RI.LQJ/HDU

5(*$1
2XUVLVWHUVPDQLVFHUWDLQO\PLVFDUULHG
('021'
7LVWREHGRXEWHGPDGDP
5(*$1
1RZVZHHWORUG<RXNQRZWKHJRRGQHVV,LQWHQGXSRQ\RX


,I ZH ZHUH WR UHDG LQ WKH PRGHUQ PHDQLQJ RIGRXEW LW ZRXOG VXJJHVW WKDW (GPRQG LV GLVDJUHHLQJ ZLWK
5HJDQEXWDVWKHFRQWH[WVXJJHVWVWKLVLVQRWWKHFDVHZHQHHGDGLIIHUHQWPHDQLQJRIGRXEWIHDU
)LQDOO\DVZLWKJUDPPDUZHPXVWEHSUHSDUHGWRVHHWKHGHPDQGVRIPHWUHDOWHULQJZRUGIRUPV7KH
FKRLFH EHWZHHQYDQWDJH DQGDGYDQWDJH VFDSH DQGHVFDSH VKUHZ DQGEHVKUHZ DQG PDQ\ RWKHU VXFK
DOWHUQDWLYHV FDQ EH VROHO\ GXH WR WKH ORFDWLRQ RI WKH ZRUG LQ WKH OLQH 6RPHWLPHV ZH FDQ HYHQ VHH WKH
DOWHUQDWLYHIRUPVMX[WDSRVHGDVZKHQERWKRIWDQGRIWHQDSSHDULQ-XOLXV&DHVDU
%58786
+RZPDQ\WLPHVVKDOO&DHVDUEOHHGLQVSRUW
7KDWQRZRQ3RPSH\VEDVLVOLHVDORQJ
1RZRUWKLHUWKDQWKHGXVW

&$66,86
6RRIWDVWKDWVKDOOEH
6RRIWHQVKDOOWKHNQRWRIXVEHFDOOHG
7KHPHQWKDWJDYHWKHLUFRXQWU\OLEHUW\


1DPHVFDQEHDOWHUHGWRR$WRQHSRLQWLQ3HULFOHVQDUUDWRU*RZHUUHIHUVWR3HULFOHVFRXQVHOORUZLWKKLV
IXOOQDPH
,Q+HOLFDQXVPD\\RXZHOOGHVFU\
$ILJXUHRIWUXWK



$WDQRWKHUKHVKRUWHQVLW

*RRG+HOLFDQHWKDWVWD\HGDWKRPH
1RWWRHDWKRQH\OLNHDGURQH



6XFKPHWULFDOO\LQGXFHGDOWHUQDWLRQVUDUHO\KDYHDQ\VHPDQWLFRUSUDJPDWLFFRQVHTXHQFH

7KH H[DPSOHV LQ WKLV HVVD\ VKRZ WKDW LQ RUGHU WR GHYHORS RXU XQGHUVWDQGLQJ RI 6KDNHVSHDUHV XVH RI
ODQJXDJHZHQHHGWRZRUNWKURXJKDWKUHHVWDJHSURFHVV
ZHILUVWQRWLFHDOLQJXLVWLFIHDWXUHVRPHWKLQJZKLFKVWULNHVXVDVSDUWLFXODUO\LQWHUHVWLQJHIIHFWLYH
XQXVXDORUSUREOHPDWLFRIWHQEHFDXVHLWGLIIHUVIURPZKDWZHZRXOGH[SHFWLQ0RGHUQ(QJOLVK
 ZH WKHQ KDYH WR GHVFULEH WKH IHDWXUH LQ RUGHU WR WDON DERXW LW DQG WR FODVVLI\ LW DV D IHDWXUH RI D
SDUWLFXODU W\SH WKH PRUH SUHFLVHO\ ZH DUH DEOH WR GR WKLV E\ GHYHORSLQJ DQ DZDUHQHVVV RI
SKRQHWLFJUDPPDWLFDODQGRWKHUWHUPLQRORJ\WKHPRUHZHZLOOEHDEOHWRUHDFKFOHDUDQGVWDWDEOH
FRQFOXVLRQV
ZHKDYHWRH[SODLQZK\WKHIHDWXUHLVWKHUH


,W LV WKH ODVW VWDJH ZKLFK LV WKH PRVW LPSRUWDQW DQG ZKLFK LV VWLOO VXUSULVLQJO\ QHJOHFWHG ,W LV QHYHU
HQRXJKDVKDVRIWHQKDSSHQHGLQDSSURDFKHVWR6KDNHVSHDUHVODQJXDJHVLPSO\WRLGHQWLI\DQGGHVFULEH
DQLQWHUHVWLQJIHDWXUHVXFKDVDSDUWLFXODUPHWULFDOSDWWHUQSLHFHRIDOOLWHUDWLRQZRUGRUGHURUOLWHUDU\
DOOXVLRQ  DQG SURFHHG QR IXUWKHU :H PXVW DOVR WU\ WR H[SODLQ LWV UROH  LWV PHDQLQJ DQG HIIHFW  LQ WKH
FRQWH[WLQZKLFKLWDSSHDUVDQGWKDWLVZK\WKLVHVVD\KDVSDLGVRPXFKDWWHQWLRQWRVHHLQJKLVODQJXDJH
ZLWKLQDVHPDQWLFDQGSUDJPDWLFSHUVSHFWLYH
,WLVRIFRXUVHE\QRPHDQVWKHZKROHVWRU\/DQJXDJHLQWXUQPXVWEHSODFHGZLWKLQDZLGHUOLWHUDU\
GUDPDWLFKLVWRULFDOSV\FKRORJLFDODQGVRFLDOIUDPHRIUHIHUHQFH:HPXVWDOVRH[SHFWWKHUHWREHPDQ\
RFFDVLRQV ZKHQ PHDQLQJ DQG HIIHFW FDQQRW EH SUHFLVHO\ GHWHUPLQHG 7KHUH ZLOO DOZD\V EH D UDQJH RI
LQWHUSUHWLYH SRVVLELOLWLHV LQ WKH ODQJXDJH WKDW RIIHU WKH LQGLYLGXDO UHDGHU DFWRU GLUHFWRU RU SOD\JRHU D
SHUVRQDO FKRLFH %XW WKH OLQJXLVWLF VWDJH LQ RXU VWXG\ RI 6KDNHVSHDUH VKRXOG QHYHU EH PLQLPL]HG RU
QHJOHFWHGIRULWLVDQHVVHQWLDOVWHSLQLQFUHDVLQJRXULQVLJKWLQWRKLVGUDPDWLFDQGSRHWLFDUWLVWU\