the house of spirits by isabel alende spark notes summary

8/9/2019 The House of Spirits by Isabel Alende Spark Notes Summary

1/46

7KH+RXVH2I6SLULWVE\,VDEHO$OHQGH

&KDSWHU5RVDWKH%HDXWLIXO

6XPPDU\

2QD+RO\7KXUVGD\6HYHURDQG1LYHDGHO9DOOHDQGWKHLUHOHYHQFKLOGUHQJRWR

0DVV7KH\DUHQRW&DWKROLFEXW6HYHURZDQWHGWREHHOHFWHGWRSDUOLDPHQWDQGIHHOV

LWLVLPSRUWDQWWREHVHHQDW0DVV)DWKHU5HVWUHSRWKHSULHVWLVIDPRXVIRUKLV

H[FHVVLYHUHOLJLRXV]HDODQGIRUKLVORQJVHUPRQV$WRQHSRLQWGXULQJWKHVHUYLFH

&ODUDWKH\RXQJHVWRIWKHGHO9DOOHFKLOGUHQDVNV)DWKHU5HVWUHSRRXWORXG,IWKDW

VWRU\DERXWKHOOLVDOLHZHUHDOOIXFNHGDUHQWZH)DWKHU5HVWUHSRWKHQDFFXVHV

&ODUDRIEHLQJSRVVHVVHGE\WKHGHYLODQGWKHGHO9DOOHIDPLO\OHDYHFKXUFKLQDKXUU\

7KHPHPEHUVRIWKHGHO9DOOHIDPLO\DUHDOOXQLTXH1LYHDLVDQDFWLYHVXIIUDJHWWH

ZKRLVH[WUHPHO\LQWXLWLYH7KHLUROGHVWGDXJKWHU5RVDLVWKHPRVWEHDXWLIXO

FUHDWXUHDQ\RQHKDVHYHUVHHQ&ODUDLQDGGLWLRQWREHLQJSUHFRFLRXVLVFODLUYR\DQW

7KHIDPLO\LVTXLWHULFKDQGOLYHVLQDQHQRUPRXVKRXVH1DQDWHQGVWKHKRXVHDQG

FDUHVIRUWKHFKLOGUHQ

'HVSLWH5RVDVJUHDWEHDXW\VKHKDVQHYHUKDGPDQ\VXLWRUVZKRGDUHGWRDSSURDFK

KHURUKHUIDPLO\6HYHUDO\HDUVEHIRUH(VWHEDQ7UXHEDD\RXQJPDQIURPDQROG

XSSHUFODVVIDPLO\WKDWORVWDOORILWVPRQH\IHOOLQORYHZLWK5RVDDQGDVNHGIRUKHU

KDQGLQPDUULDJH5RVDDQGKHUSDUHQWVDJUHHG+RZHYHU(VWHEDQZDQWHGWRVHFXUH

KLVRZQIRUWXQHEHIRUHWKHPDUULDJHDQGOHIWWRWU\WRVWULNHLWULFKLQWKHPLQHV+H

ZRUNVWLUHOHVVO\VSXUUHGRQE\KLVORYHIRU5RVD5RVDVSHQGVPRVWRIKHUWLPH

HPEURLGHULQJDWDEOHFORWKZLWKPDJLFFUHDWXUHV

$IWHUWKHGHO9DOOHIDPLO\IOHHVFKXUFKDJURXSRIPHQDUULYHFDUU\LQJWKHERG\RI

8QFOH0DUFRV1LYHDVEURWKHU0DUFRVZDVDQDGYHQWXUHUDQG&ODUDVIDYRULWHXQFOH

%HWZHHQWULSVKHVWD\HGZLWKWKHGHO9DOOHIDPLO\WHOOLQJ&ODUDVWRULHVDQGWHDFKLQJKHUWKHFXVWRPVRIWKHIDURIIODQGVKHYLVLWHG8QFOH0DUFRVZDVDOVRIDPRXV

RXWVLGHRIWKHIDPLO\EHFDXVHKHKDGRQFHDVVHPEOHGDIO\LQJFRQWUDSWLRQLQZKLFK

KHKDGVDLOHGRIIRYHUWKHPRXQWDLQV+HKDGEHHQWDNHQIRUGHDGDQGZDVHYHQ

EXULHGEXWWKHQKHUHDSSHDUHG)RUWKLVUHDVRQ1LYHDKDVWURXEOHEHOLHYLQJWKDW

0DUFRVLVDFWXDOO\GHDGWKLVWLPH0DUFRVLVWUXO\GHDGEXWDFFRPSDQ\LQJKLVERG\

LVDSXSS\%DUUDEDVZKLFKLVVWLOODOLYH&ODUDDGRSWVWKHSXSS\ZKRJURZVLQWRDQ


2/46

HQRUPRXVEXWGRFLOHGRJ

$WWKHHQGRIWKHIDOO6HYHURGHO9DOOHLVLQYLWHGWREHWKH/LEHUDO3DUW\FDQGLGDWH

IRUDVRXWKHUQSURYLQFH6HYHURLVYHU\H[FLWHG7KH\FHOHEUDWHZLWKDSLJDQGPDQ\

RWKHUJLIWVWKDWWKHFRQVWLWXHQF\IURPWKHVRXWKVHQGVWRWKHGHO9DOOHIDPLO\&ODUD

DQQRXQFHVWKDWWKHUHZLOOVRRQEHDQDFFLGHQWDOGHDWKLQWKHIDPLO\$IWHUWKHSDUW\

5RVDGHYHORSVDFROG'RFWRU&XHYDVYLVLWV5RVDDQGSUHVFULEHVUHVWDQGOHPRQDGH

ZLWKDVKRWRIOLTXRU6HYHURWHOOV1DQDWRIROORZWKHGRFWRUVLQVWUXFWLRQVJLYLQJ

5RVDVRPHRIWKHEUDQG\WKDWKDGDFFRPSDQLHGWKHSLJ7KHQH[WPRUQLQJ5RVDLV

GHDG'RFWRU&XHYDVIHHOVWKDWWKHUHLVVRPHWKLQJVXVSLFLRXVDERXWWKHGHDWKDQG

DVNVWRSHUIRUPDQDXWRSV\7KHIDPLO\UHOXFWDQWO\DJUHHV'RFWRU&XHYDVDQGDQ

DVVLVWDQWSHUIRUPWKHDXWRSV\LQWKHNLWFKHQ&ODUDVHQVLQJWKDWVRPHWKLQJVWUDQJHLV

KDSSHQLQJVQHDNVRXWDQGVHFUHWO\ZDWFKHVWKHHQWLUHDXWRSV\,WWXUQVRXWWKDWWKH

EUDQG\LQWHQGHGIRU6HYHURDQGVQXFNLQWRWKHKRXVHDORQJZLWKWKHJLIWVIURPWKH

FRQVWLWXHQWVZDVSRLVRQHG1RRQHHYHUGLVFRYHUVZKRVHQWWKHEUDQG\&ODUDLVVR

VKRFNHGDWWKHVLJKWRIWKHDXWRSV\DQGVRIULJKWHQHGE\KHURZQSUHGLFWLRQWKDWVKH

VWRSVVSHDNLQJ

\(VWHEDQ7UXHEDLVQRWLILHGRI5RVDVGHDWKDQGUHWXUQVIRUWKHIXQHUDOXWWHUO\

GLVWUDXJKW+HLVIXULRXVWKDWKHZDVXQDEOHWRVSHQGDQ\WLPHZLWK5RVDDQGLVVR

XQZLOOLQJWROHWKHUJRWKDWKHEULEHVWKHFHPHWHU\FDUHWDNHUWROHWKLPVWD\E\KHU

JUDYHDOOWKDWQLJKW

$QDO\VLV

1DUUDWLYHYRLFHDQGWLPHILJXUHSURPLQHQWO\LQWKHQDUUDWLRQRI7KH+RXVHRIWKH

6SLULWV,QWKHILUVWSDUDJUDSKZHOHDUQWKDWDILUVWSHUVRQQDUUDWRUFRQVWUXFWVWKH

VWRU\ILIW\\HDUVDIWHUWKHILUVWDFWLRQLQLWWDNHVSODFHEDVHGRQWKHQRWHERRNVWKDW

&ODUDZULWHV7KHQDUUDWLRQKRZHYHUTXLFNO\VKLIWVWRDWKLUGSHUVRQRPQLVFLHQW

SRLQWRIYLHZ0RUHWKDQKDOIZD\WKURXJKWKHILUVWFKDSWHUDILUVWSHUVRQQDUUDWRU

UHDSSHDUV7KLVILUVWSHUVRQQDUUDWRULV(VWHEDQ7UXHED7KHHQWLUHQRYHOZLOOEH

QDUUDWHGLQWKLVIDVKLRQZLWKVHFWLRQVLQWKHILUVWSHUVRQYRLFHRI(VWHEDQ7UXHEDDQG

VHFWLRQVLQDQRPQLVFLHQWWKLUGSHUVRQ,QWKHHSLORJXHZHZLOOEHWROGWKDW$OED

ZKRLV(VWHEDQ7UXHEDVJUDQGGDXJKWHUDQG(VWHEDQ7UXHEDDUHWKHFRQDUUDWRUVRI

WKHVWRU\:HFDQWKXVDVVXPHWKDWWKHWKLUGSHUVRQRPQLVFLHQWQDUUDWRULV$OED2I

FRXUVHDQQRXQFLQJDWWKHHQGRIWKHVWRU\ZKRWKHQDUUDWRUVDUHLVDOLWHUDU\GHYLFH

HPSOR\HGE\WKHDXWKRU,VDEHO$OOHQGH

7KHVKLIWEHWZHHQWKHWLPHZKHQ&ODUDLVDFKLOGDQGWKHWLPHILIW\\HDUVODWHUZKHQ


3/46

WKHQDUUDWRUUHFRQVWUXFWVWKHVWRU\LVRQO\WKHILUVWRIPDQ\FRPSOLFDWHGWHPSRUDO

WZLVWVLQ7KH+RXVHRIWKH6SLULWV7KHVWRU\LVQRWWROGLQRUGHUIURPEHJLQQLQJWR

HQG)RUH[DPSOHWKHVWRU\RSHQVZLWKWKHDQQRXQFHPHQWRI%DUUDEDVVDUULYDOWKHQ

PRYHVEDFNWRHDUOLHUWKDWGD\ZKHQWKHIDPLO\LVLQFKXUFKWKHQVKLIWVEDFNIXUWKHU

WR5RVDVELUWKUHWXUQVWRWKHIDPLO\LQFKXUFKDQGWKHQPRYHVIRUZDUGWRWKHIRUHVKDGRZLQJRIDWLPH\HDUVODWHUZKHQ1LYHDZRXOGUHFDOOWKDWYHU\PRPHQWLQ

FKXUFK7KLVFRPSOLFDWHGPRYHPHQWEDFNDQGIRUWKLQWLPHLVFKDUDFWHULVWLFRIWKH

JHQUHRI0DJLFDO5HDOLVP,WLVDOVRWKHPDWL]HGLQWKHVWRU\WKURXJK&ODUDVDELOLW\WR

SUHGLFWWKHIXWXUH

&ODUDVQDPHDSSHDUVEHIRUHDQ\RWKHUVLQWKHQRYHOEXWVKHLVTXLFNO\VHWZLWKLQWKH

FRQWH[WRIKHUHQWLUHIDPLO\$OWKRXJK&ODUDDQG(VWHEDQDUHWKHWZRFHQWUDOILJXUHV

DURXQGZKRPDOORIWKHRWKHUFRQQHFWLRQVLQWKHVWRU\UHYROYH 7KH+RXVHRIWKH

6SLULWVLVDIDPLO\VDJD'LIIHUHQWPHPEHUVRIWKHGHO9DOOH7UXHEDIDPLO\WDNHRQ

WKHSULPDU\LPSRUWDQFHDWYDULRXVWLPHV

7KHQDUUDWRUVGRQRWPHQWLRQDQ\VSHFLILFFRXQWU\LQZKLFK7KH+RXVHRIWKH6SLULWV

LVVHW+RZHYHUZHFDQGHGXFHWKDWLWLVD6RXWK$PHULFDQFRXQWU\7KHGHO9DOOH

IDPLO\OLYHVLQDKLJKO\GHYHORSHGFLW\EXWWKHFRXQWU\DOVRFRQWDLQVUXJJHGGHVHUW

ZKHUH(VWHEDQZRUNVLQWKHPLQHV$OWKRXJKQRH[DFWGDWHLVJLYHQZHFDQDOVR

GHGXFHWKDWWKHVWRU\RSHQVDURXQGWKHEHJLQQLQJRIWKHWZHQWLHWKFHQWXU\

0DQ\RIWKHFKDUDFWHUVSRVVHVVHFFHQWULFFKDUDFWHULVWLFV&ODUDVFODLUYR\DQFHLVDQ

H[WUHPHH[DPSOHEXW5RVDVEHDXW\DQG8QFOH0DUFRVVWUDYHOVDUHDOVRXQXVXDO7KH\LQWURGXFHDZRUOGZKHUHWKHODZVRIZKDWZHPD\WKLQNRIDVUHDOLVWLFDUHQRW

TXLWHUHVSHFWHG+RZHYHUDOORIWKHHFFHQWULFLWLHVOLHMXVWRQWKHERUGHURIZKDWLV

EHOLHYDEOH)XUWKHUPRUHWKHFKDUDFWHUVLQWKHQRYHODUHDZDUHRIWKHVWUDQJH

TXDOLWLHVRIWKHLUDFWLRQVDQGEHOLHIV\HWWKH\WDNHWKHPLQVWULGH7KLVLQWXUQPDNHV

WKHPPRUHEHOLHYDEOH0DJLFDO5HDOLVPLVRIWHQGHILQHGE\MXVWWKLVW\SHRI

FRPELQDWLRQRIDFWLRQVDQGTXDOLWLHVWKDWOLHRQWKHHGJHRIZKDWZHFDQDFFHSWDV

UHDO5RVDVJUHHQKDLU\HOORZH\HVDQGWUDQVSDUHQWVNLQDUHPDJLFDOO\UHDO7KHVH

TXDOLWLHVDUHQRWVLPSO\PHWDSKRULF5RVDVKDLULVQRWVREORQGWKDWLWORRNVJUHHQLW

LVUHDOO\JUHHQ7KHPDJLFDOTXDOLWLHVRIKHUFRORULQJHPSKDVL]HKHUH[WUHPHEHDXW\LQDPXFKPRUHHIIHFWLYHZD\WKDQWKHVLPSOHXVHRIPHWDSKRUVRUVXSHUODWLYHVFRXOG

HYHUGR$WWKHVDPHWLPHWKH\WUDQVIRUPKHUEHDXW\LQWRVRPHWKLQJWKDWLVQRWTXLWH

UHDO$OORIWKHHFFHQWULFRUPDJLFDOHOHPHQWVRIWKHVWRU\DUHGHVFULEHGLQVLPSOH

VHQWHQFHVDQGYRFDEXODU\7KHVWUDLJKWIRUZDUGSUHVHQWDWLRQDGGVWRWKHEHOLHYDEOHRU

UHDOTXDOLW\RIRXWODQGLVKDWWULEXWHVRUHYHQWV


4/46

&KDSWHU7KH7KUHH0DULDV

6XPPDU\$IWHU5RVDVGHDWK(VWHEDQUHWXUQVWRKLVKRPHZKHUHKLVVLVWHU)HUXODDQGKLV

PRWKHU'RQD(VWHU7UXHEDOLYH)HUXODKDVGHGLFDWHGKHUOLIHWRFDULQJIRU'RQD

(VWHUZKRLVFRQILQHGWRKHUEHGZLWKGHELOLWDWLQJDUWKULWLV,QWKHZDNH RI5RVDV

GHDWK(VWHEDQVQDWXUDOEDGKXPRUZRUVHQV,WLVDOVRDJJUDYDWHGE\)HUXODZKRRQ

WKHRQHKDQGVHHNVVDOYDWLRQWKURXJKKHUVHOIVDFULILFLQJGHYRWLRQWRKHUPRWKHU

DQGRQWKHRWKHUKDQGUHVHQWVWKHIDFWWKDWDZRPDQGRHVQRWKDYHWKHVDPHIUHHGRP

WROHDYHWKHIDPLO\EHKLQGWKDW(VWHEDQGRHV

'RQD(VWHUPDUULHGEHORZKHUVRFLDOVWDWLRQRXWRIORYH+HUKXVEDQGTXLFNO\

VTXDQGHUHGWKHLUGRZU\WU\LQJDPRQJRWKHUWKLQJVWRWUDQVIRUPDSURSHUW\WKH\

RZQHGLQWKHFRXQWU\7UHV0DULDVLQWRDQRSXOHQWHVWDWH

(VWHEDQGRHVQRWZDQWWRUHWXUQWRWKHPLQHVEXWKHQHHGVWRPDNHPRQH\LQVRPH

ZD\VRWKDWKHFDQVXSSRUWKLVPRWKHUDQG)HUXODZKRKHSURPLVHVZLOOQHYHUODFN

IRUDQ\WKLQJDVORQJDVKHOLYHV(VWHEDQGHFLGHVDJDLQVW)HUXODVDGYLFHWRJRWR

7UHV0DULDVDQGWU\WRWXUQLWLQWRDPRQH\PDNLQJHVWDWH(VWHEDQILQGV7UHV0DULDV


5/46

LQUXLQV7KHSHDVDQWVZKROLYHRQWKHODQGKDYHQRWVHHQDQRZQHUWKHUHLQILIWHHQ

\HDUV0RVWRIWKHPHQKDYHOHIWWKHSURSHUW\DQGWKHZRPHQFKLOGUHQDQGHOGHUO\

ZKRDUHOHIWEDUHO\VXEVLVWRQWKHSURSHUW\2QHRIWKHIHZPHQZKRKDYHUHPDLQHG

LV3HGUR6HJXQGR*DUFLDZKRKDGUXQWKHHVWDWHLQWKH7UXHEDVDEVHQFH(VWHEDQ

VSHQGVDOOWKHPRQH\KHKDGEHHQVDYLQJIRUKLVPDUULDJHRQ7UHV0DULDV+HDQGWKHSHDVDQWVODERUGD\DQGQLJKWWRUHEXLOGWKHHVWDWHDQGVORZO\WKH\EHJLQWRVHH

WKHIUXLWVRIWKHLUODERUV

$VVRRQDVKHKDVVSDUHWLPHRQKLVKDQGV(VWHEDQ7UXHEDUHDOL]HVWKDWKHKDVDQ

HQRUPRXVVH[XDODSSHWLWH+HUDSHVD\RXQJYLUJLQSHDVDQWJLUO3DQFKD*DUFLD

ZKRPKHEULQJVWROLYHLQWKHPDLQKRXVHDVKLVKRXVHNHHSHUDQGPLVWUHVV7KURXJK

KLVUHODWLRQVKLSZLWK3DQFKD(VWHEDQEHFRPHVLQWHUHVWHGLQWKHSHDVDQWV+H

FRQVWUXFWVDVFKRROKRXVHDQGPDNHVSODQVWRLQFUHDVHWKHTXDOLW\RIOLIHIRUWKH

SHDVDQWVDOWKRXJKKHLQQRZD\ZDQWVWKHPWREHFRPHKLVHTXDOV(VWHEDQDOVRVHWV

XSDYRXFKHUV\VWHPZKHUHKHSD\VWKHSHDVDQWVE\PHDQVRIYRXFKHUVWKDWKHDOVR

DFFHSWVIURPWKHPDVSD\PHQWDWWKHVWRUHKHVHWVXSRQWKHSURSHUW\

3DQFKDEHFRPHVSUHJQDQWDQG(VWHEDQORVHVLQWHUHVWLQKHU6KHOHDYHVWKHPDLQ

KRXVHDQG(VWHEDQEHJLQVUDSLQJRWKHUSHDVDQWJLUOV,QDIHZ\HDUV7UHV0DULDV

EHFRPHVRQHRIWKHULFKHVWSURSHUWLHVLQWKHUHJLRQ7KHZRUNHUVDUHQRWVDWLVILHG

ZLWKWKHZD\(VWHEDQWUHDWVWKHPEXWKHUHIXVHVWROLVWHQWR3HGUR6HJXQGRV

UHTXHVWVIRUWKLQJVVXFKDVIDLUSD\(VWHEDQFRQWLQXHVWRUDSHHYHU\JLUOKHFDQILQG

DQGVLUHVDQHQRUPRXVQXPEHURIFKLOGUHQ+HQHYHUDFNQRZOHGJHVDQ\RIWKHPDQG

RQO\DOORZVRQH3DQFKDVVRQWREHDUKLVILUVWQDPH

(VWHEDQEHFRPHVLQYROYHGLQSROLWLFVZLWKRWKHUODQGRZQHUVLQWKHDUHD7KHRWKHU

ODQGRZQHUVDOVRLQWURGXFH(VWHEDQWRWKHORFDOEURWKHO7KH5HG/DQWHUQ$OWKRXJK

(VWHEDQSUHIHUVWRUDSH\RXQJJLUOVKHGRHVPHHWRQHSURVWLWXWHKHOLNHVDWWKH5HG

/DQWHUQ7UDQVLWR6RWR2QHGD\KHDVNV7UDQVLWRLIVKHZRXOGOLNHDSUHVHQW

7UDQVLWRDVNV(VWHEDQIRUILIW\SHVRVDJRRGGHDORIPRQH\VRWKDWVKHFDQPRYHWR

WKHFDSLWDODQGVHWKHUVHOIXSDVDSURVWLWXWHWKHUH6KHSURPLVHVWRSD\KLPEDFN

ZLWKLQWHUHVWRQHGD\(VWHEDQJLYHV7UDQVLWRWKHPRQH\7KDQNVWRDFRPELQDWLRQRI

UHZDUGVDQGLQWLPLGDWLRQWKH&RQVHUYDWLYH3DUW\ZLQVWKHHOHFWLRQV

7KUHHGD\VODWHU(VWHEDQUHFHLYHVDOHWWHUIURP)HUXODZLWKWKHQHZVWKDW'RQD(VWHU

LVG\LQJ,WKDVEHHQ\HDUVVLQFH(VWHEDQKDVVHHQKLVPRWKHU(VWHEDQSXWV3HGUR

6HJXQGR*DUFLDLQFKDUJHRI7UHV0DULDVDQGOHDYHVIRUWKHFDSLWDO


6/46

$QDO\VLV

&ODVVHPHUJHVDVDNH\WKHPH7KHGHO9DOOHIDPLO\LVFOHDUO\DSDUWRIWKHZHDOWK\

XSSHUFODVV7KH\DUHDOVRSROLWLFDOO\OLEHUDO(VWHEDQ7UXHEDVH[SHULHQFHDGGV

QXDQFHWRWKHXSSHUFODVV0RQH\DORQHGRHVQRWGHILQHFODVV(VWHEDQVIDPLO\LVRI

WKHXSSHUFODVVEHFDXVHRIKLVPRWKHUVIDPLO\QDPHZKLFKVLWXDWHVKHULQ3HUXVXSSHUFODVV6SHFLILFDOO\'RQD(VWHUVPDLGHQQDPHEHORQJVWRWKHYLFHUR\DOW\RI

/LPD7KLVVLWXDWHV(VWHEDQLQUHODWLRQWRWKH6SDQLVKFURZQ+LVIDPLO\DVZHOODV

WKHGHO9DOOHVDUHFULROORV7KH\OLYHDQGZHUHERUQLQ6RXWK$PHULFDEXWDUHWKH

GLUHFWGHVFHQGDQWVRI6SDQLDUGV

+RZHYHU(VWHEDQVPRWKHUPDUULHGDQLPPLJUDQWEHORZKHUFODVVDQGLQDGGLWLRQ

KDVORVWDOORIKHUPRQH\(VWHEDQPXVWWKHUHIRUHZRUNWRPDNHDOLYLQJEXWVWLOO

UHPDLQVSDUWRIWKHXSSHUFODVV:KHQ(VWHEDQPRYHVWR7UHV0DULDVDQRWKHUFODVV

VWDWXVLVLQWURGXFHGWKHSHDVDQWV$OWKRXJK(VWHEDQKDVUHODWLYHO\OLWWOHPRQH\

FRPSDUHGWRWKHGHO9DOOHVKHSRVVHVVHVDJUHDWGHDOPRUHPRQH\WKDQWKHSHDVDQWV

LQ7UHV0DULDV+HDOVRKROGVWKHRIILFLDOWLWOHWRWKHODQG(VWHEDQYLHZVWKH

SHDVDQWVDVOHVVWKDQKLPVHOI+HVHHV7UHV0DULDVVGHFOLQHVLQFHKLVIDWKHUVGHDWK

DVQRWDUHVXOWRIDQDEVHQFHRQFDSLWDOLQYHVWPHQWEXWRIDQDEVHQFHRIZRUN

/LQNHGWRWKHTXHVWLRQRIFODVVLVDTXHVWLRQRIJHQHDORJ\6LQFHLWLVWRDJUHDW

GHJUHHLQGHSHQGHQWRIPDWHULDOZHDOWKFODVVVWDWXVLVSULPDULO\SDVVHGWKURXJK

JHQHDORJ\,WLVQRWKRZHYHUVLPSO\WLHGLQZLWKELRORJLFDOSDUHQWLQJ(VWHEDQV

UHIXVDOWRDFNQRZOHGJHDQ\RIWKHFKLOGUHQKHIDWKHUVLQ7UHV0DULDVDQGPRVW

VLJQLILFDQWO\KLVUHIXVDOWRDOORZDQ\RIWKHPWRFDUU\KLVODVWQDPHFXWVWKRVH

FKLOGUHQRXWRIKLVJHQHDORJ\$VWKH\GRQRWLQKHULWKLVQDPH(VWHEDQVEDVWDUG

FKLOGUHQZLOOQRWLQKHULWDQ\RIKLVHVWDWH

*HQGHUFRPSOLFDWHVFODVVDQDO\VLV$OWKRXJKWKHQDUUDWRUVQHYHUH[SOLFLWO\FRQGHPQ

JHQGHULQHTXDOLW\WKH\FRQVLVWHQWO\H[SODLQWKHGLIIHUHQWH[SHULHQFHVRIPHQDQG

ZRPHQ,QWKHIDFHRIKLVILQDQFLDOVLWXDWLRQ(VWHEDQLVDEOHWRJRRXWILQGZRUN

DQGEHWWHUKLVVLWXDWLRQ+LVVLVWHU)HUXODRQWKHRWKHUKDQGFRXOGRQO\KDYHEHWWHUHG

KHUORWE\PDUU\LQJVRPHRQHZLWKPRUHPRQH\(YHQWKDWRSWLRQZDVQRWTXLWHRSHQ

WRKHUVLQFHDVWKHGDXJKWHUWKHFDUHRIWKHLUPRWKHUIHOORQKHUVKRXOGHUV*HQGHU

DOVRFRPHVWRSOD\LQWKHSHDVDQWVFODVVVLWXDWLRQ:KHQ(VWHEDQDUULYHVLQ7UHV

0DULDVKHQRWLFHVWKDWYHU\IHZPHQRIZRUNLQJDJHUHPDLQ7KRVHPHQOHIWWKHLU

IDPLOLHVWRILQGZRUNZKLOHWKHZRPHQVWD\HGDWKRPHSDUDOOHOWRWKH7UXHEDIDPLO\

VLWXDWLRQ(VWHEDQSHUSHWXDWHVJHQGHULQHTXDOLW\DVKHGLVWULEXWHV&KULVWPDVERQXVHV

RQO\WRWKHPHQFRQVLGHULQJWKDWRQO\PHQKHDGKRXVHKROGV


7/46


8/46

&KDSWHU&ODUDWKH&ODLUYR\DQW

6XPPDU\

6HYHURDQG1LYHDFDOOLQDOOVRUWVRIGRFWRUVWRILQGRXWZK\&ODUDKDVVWRSSHG

WDONLQJ'RFWRU&XHYDVLVXQVXFFHVVIXO7KH5XPDQLDQ5RVWLSRYZKRSHGGOHVDOO

VRUWRIPDJLFDOFXUHVLVFDOOHGLQWRH[DPLQHKHU5RVWLSRYGHWHUPLQHVWKDW&ODUDV

RQO\SUREOHPLVWKDWVKHGRHVQRWZDQWWRVSHDN1DQDWKHQGHFLGHVWKDWWKHEHVWFXUH

ZRXOGEHWRIULJKWHQ&ODUDVRPXFKWKDWVKHLVIRUFHGWRFU\RXWIRUKHOS2YHUWKH

HQVXLQJQLQH\HDUV1DQDLQYHQWVDFRXQWOHVVQXPEHURIGLVJXLVHVDQGWUDSVWRWU\WR

VFDUH&ODUDLQWRWDONLQJ1DQDRQO\VXFFHHGVLQWXUQLQJ%DUUDEDVLQWRDQHUYRXVZUHFN

&ODUDVPXWHQHVVIRUFHVKHUWREHUHPRYHGIURPVFKRRODQGWDXJKWDWKRPH6KHLV

DQDYLGUHDGHUDQGEHJLQVDOLIHORQJSUDFWLFHRIILOOLQJLQQXPHUDEOHQRWHERRNVZLWK

KHUSULYDWHREVHUYDWLRQV6KHDOVRFDUULHVDFKDONERDUGZLWKKHUWKURXJKZKLFKVKH

FRPPXQLFDWHV2QFH+RQRULRWKHJDUGHQHUWHOOV&ODUDDGUHDPKHKDVKDGZKLFKVKH

LQWHUSUHWVVXFFHVVIXOO\KHOSLQJKLPWRZLQHLJKW\SHVRVJDPEOLQJ7KHQHZV

FLUFXODWHVDQGVRRQHYHU\RQHLVDVNLQJ&ODUDWRLQWHUSUHWWKHLUGUHDPV,QVWHDGRI

ORVLQJKHUDELOLWLHVDVVKHJHWVROGHUDV1DQDKDGSUHGLFWHG&ODUDEHFRPHVPRUH

FODLUYR\DQW6KHSUHGLFWVGHDWKVDQGQDWXUDOGLVDVWHUVUHDGVFDUGVDQGSOD\VWKH

SLDQRZLWKWKHFRYHUGRZQ6HYHURGLVOLNHVKLVGDXJKWHUVHFFHQWULFLWLHVDQGIRUELGV

KHUWRXVHKHUSRZHUVEXWWKLVRQO\LQFUHDVHVKHUDFWLYLWLHVXQWLO1LYHDVWHSVLQDQG

JLYHVKHUIUHHUHLJQ&ODUDDFFRPSDQLHV1LYHDLQDOORIKHUGDLO\DFWLYLWLHVIURP

VHZLQJWRVXIIUDJHWWHSURWHVWV,Q&ODUDVVLOHQFH1LYHDWHOOVKHUFRXQWOHVVVWRULHV

DERXWWKHIDPLO\2QKHUQLQHWHHQWKELUWKGD\&ODUDDQQRXQFHVWKDWVKHZLOOVRRQEH

PDUULHGWR5RVDVILDQFp(YHU\RQHLVVRDPD]HGWKDWVKHKDVEHJXQVSHDNLQJDJDLQ

WKDWWKH\SD\OLWWOHDWWHQWLRQWRKHUSUHGLFWLRQ

(VWHEDQDUULYHVKRPHWRILQGWKHKRXVHIDOOLQJDSDUWDQG)HUXODJUHDWO\DJHGDQG

HPELWWHUHGEXWKHLVVWLOOLQWLPHWRVD\JRRGE\HWRKLVPRWKHU'RQD(VWHU'RQD

(VWHUWHOOV(VWHEDQWKDWVKHZLOOGLHLQSHDFHLIVKHNQRZVKHLVJRLQJWRVHWWOHGRZQ

DQGJHWPDUULHG(VWHEDQSURPLVHVKLVPRWKHUWKDWKHZLOOGRDVVKHZLVKHV:KLOH

KHLVDWWKHGHO9DOOHKRXVHORRNLQJIRUDEULGH'RQD(VWHUGLHV

:KHQ(VWHEDQDVNV6HYHURDQG1LYHDLIWKH\KDYHDQ\GDXJKWHUVRIPDUULDJHDEOH


9/46

DJHDQGFRQGLWLRQWKH\KDYHRQO\&ODUDWRRIIHUKLP7KH\ZDUQKLPRIDOORI

&ODUDVHFFHQWULFLWLHV(VWHEDQFRQFOXGHVWKDWQRQHRIWKHVHWKLQJVSRVHGDQ\

REVWDFOHWREULQJLQJKHDOWK\OHJLWLPDWHFKLOGUHQLQWRWKHZRUOGDQGDVNVWRPHHW

&ODUD(VWHEDQOLNHV&ODUDEXWLVDZNZDUGDQGVK\DURXQGKHU$WWKHHQGRIWKDW

ILUVWPHHWLQJ&ODUDDVNV(VWHEDQLIKHZDQWVWRPDUU\KHU+HGRHVRYHUMR\HGWKDWVXFKD\RXQJEHDXWLIXOJLUOZRXOGIDOOLQORYHZLWKKLPRQILUVWVLJKW(VWHEDQGRHV

QRWNQRZWKDW&ODUDGRHVQRWDJUHHWRPDUU\KLPRXWRIORYHEXWLQDFFRUGDQFHZLWK

ZKDWVKHKDVVHHQRIKHURZQGHVWLQ$VWHEDQDQG&ODUDFRXUWIRUDIHZPRQWKVDQG

EHFRPHRIILFLDOO\HQJDJHG'XULQJWKHHQJDJHPHQWSDUW\VRPHRQHVWDEV%DUUDEDVLQ

WKHEDFN+HVWDJJHUVWR&ODUDDQGGLHVLQKHUODSSUHFLSLWDWLQJDTXLFNHQGWRWKH

IHVWLYLWLHV

,QWKHIROORZLQJ\HDU&ODUDVIDPLO\SUHSDUHVKHUWURXVVHDXDQG(VWHEDQEXLOGVZKDW

HYHU\RQHFDOOVWKHELJKRXVHRQWKHFRUQHUDVWKHLUKRPHLQWKHFLW$HUXODOHDUQV

WRKHUJUHDWMR\WKDW&ODUDLVLQFRPSHWHQWLQWKHGRPHVWLFVSKHUHDQGLQIRUPV

(VWHEDQWKDWVKHRXJKWWROLYHZLWKWKHP(VWHEDQQHLWKHUREMHFWVQRUDJUHHV

SURPSWLQJ)HUXODWRJRVWUDLJKWWR&ODUD%HIRUH)HUXODHYHQUDLVHVWKHVXEMHFW&ODUD

DVVXUHVKHUWKDWQRWRQO\ZLOO)HUXODOLYHZLWKWKHQHZO\ZHGVEXWWKHWZRZRPHQ

ZLOOOLYHOLNHVLVWHUV)HUXODLVLQFUHGLEO\PRYHGDQGDGHHSIULHQGVKLSLVHVWDEOLVKHG

EHWZHHQWKHWZRZRPHQ

$VVRRQDVWKHELJKRXVHRQWKHFRUQHULVFRPSOHWHG(VWHEDQDQG&ODUDDUHPDUULHG

'XULQJWKHLUWKUHHPRQWKKRQH\PRRQLQ,WDO\(VWHEDQIDOOVHYHUPRUHGHVSHUDWHO\LQ

ORYHZLWK&ODUD$WWKHVDPHWLPHKHUHDOL]HVWKDWVKHGRHVQRWUHDOO\EHORQJWRKLP

6KRUWO\DIWHUWKH\VHWWOHGRZQLQWKHFLW\HYHU\RQHNQRZVWKDW&ODUDLVSUHJQDQW

)HUXODFDUHVIRU&ODUDPXFKDV1DQDKDGZKHQVKHOLYHGDWKRPH

$IHZPRQWKVODWHU(VWHEDQPXVWWHQGWR7UHV0DULDV&ODUDDQG)HUXODOLYHKDSSLO\

WRJHWKHULQWKHELJKRXVHRQWKHFRUQHU)HUXODVGHYRWLRQWR&ODUD GHHSHQV$IWHU

QHDUO\WHQPRQWKV'RFWRU&XHYDVGHOLYHUV&ODUDDQG(VWHEDQVGDXJKWHU%ODQFDE\

FHVDUHDQVHFWLRQ

$QDO\VLV

&ODUDGRHVQRWQHHGWRPDNHDQ\UDGLFDOEUHDNVZLWKWUDGLWLRQWREHDQH[FHHGLQJO\

LQGHSHQGHQWZRPDQ+HUUHIXVDOWRVSHDNDOWKRXJKDWILUVWPRWLYDWHGE\IHDURIWKH

SRZHURIKHUZRUGVLVKHUILUVWJUHDWJHVWXUHRIVHOIDVVHUWLRQ6LQFHWUDGLWLRQDOO\

ZRPHQDUHPHDQWWRVXEPLWWKHLURSLQLRQVDQGWKHLUYRLFHVWRWKRVHRIPHQWKLV

FRXOGEHVHHQDVDVXEVHUYLHQWJHVWXUH+RZHYHUDVWKH5XPDQLDQ5RVWLSRY


10/46

H[SODLQV&ODUDGRHVQRWWDONEHFDXVHVKHGRHVQRWZDQWWR:KHQ&ODUDGRHVVSHDN

LWLVWRDQQRXQFHKHUPDUULDJHWR(VWHEDQ2QFHDJDLQKHUPDUULDJHLVLQPDQ\

UHVSHFWVTXLWHWUDGLWLRQDO+RZHYHU&ODUDLVWKHILUVWWRDQQRXQFHWKHPDUULDJHDQG

&ODUDDVNV(VWHEDQLIKHZDQWVWRPDUU\KHU:KHQ&ODUDVSHDNVVKHXVHVVLPSOH

DVVHUWLYHVHQWHQFHV7KHYHUEZLOODSSHDUVLQPDQ\RIKHUXWWHUDQFHV&ODUDQHYHUPLVWUXVWVKHULQWXLWLRQQRUGRHVVKHDOORZDQ\URRPIRUDQ\RQHWRTXHVWLRQKHU ,Q

DGGLWLRQ&ODUDPDUULHV(VWHEDQZLWKRXWDQ\URPDQWLFQRWLRQVHLWKHURIWKHORYH

EHWZHHQWKHPRURIDQ\WKLQJJRRGWKDWPLJKWFRPHIURPWKHPDUULDJH&ODUDPDNHV

QRVHFUHWRIKHUDWWLWXGH6KHGRHVQRWWHOO(VWHEDQRXWULJKWWKDWVKHGRHVQRWORYH

KLPEXWVKHQHYHUGLVVLPXODWHVKHUIHHOLQJV6KHQHYHUOHDUQVDQ\RIWKHGRPHVWLF

VNLOOVWKDWZRXOGDOORZKHUWRSHUIRUPWKHUROHRIWKHWUDGLWLRQDOZLIH&ODUDFDUULHV

RXWDOORIWKLVZLWKWKHJUHDWHVWDSSDUHQWSDVVLYLW\7KURXJKVXSSRVHGO\WUDGLWLRQDO

IHPLQLQHSDVVLYLW\&ODUDUHVLVWVWUDGLWLRQDOIHPLQLQHUROHV)HUXODVSUHVHQFHLQWKH

KRXVHKROGWLSVWKHJHQGHUEDODQFH,QWKHWUDGLWLRQDODQGDFFHSWDEOHVSDFHRIIHPDOHIULHQGVKLS)HUXODDQG&ODUDGHYHORSDERQGGHHSHUWKDQWKDWRIHLWKHUZRPDQWR

(VWHEDQ)HUXODLQSDUWLFXODUGHYRWHVKHUVHOIHQWLUHO\WR&ODUD)HUXODVSDVVLRQIRU

&ODUDLVVRVWURQJWKDWLWERUGHUVRQURPDQWLFDQGVH[XDOGHVLUH

7KHVWUXFWXUHRIWKHELJKRXVHRQWKHFRUQHULVDPHWDSKRUIRUWKHVWUXFWXUHRIWKH

HQWLUHQRYHO(VWHEDQEXLOGVDKRXVHWKDWRQWKHVXUIDFHLVVWUDLJKWIRUZDUGLI

VRPHZKDWRVWHQWDWLRXV6LPLODUO\7KH+RXVHRIWKH6SLULWVFDQEHUHDGDVD

WUDGLWLRQDOURPDQFHQRYHOIROORZLQJDVLQJOHIDPLO\RYHUVHYHUDOJHQHUDWLRQV

+RZHYHUWKHQDUUDWRULQIRUPVXVDV(VWHEDQEXLOGVWKHKRXVHWKDWLWZLOOHQGXSIXOO

RIFRPSOLFDWHGWZLVWHGDQGLPSUDFWLFDODGGLWLRQV'HVSLWHLWVDSSDUHQWO\WUDGLWLRQDO

VWUXFWXUH7KH+RXVHRIWKH6SLULWVFRQWDLQVDQHQRUPRXVQXPEHURIFRPSOLFDWHG

WZLVWVRISORW7KHWLWOHRIWKHQRYHOXQGHUOLQHVWKHDVVRFLDWLRQ7KH+RXVHRIWKH

6SLULWVUHIHUVERWKWRWKHERRNDVDZKROHDQGDOVRWRWKHELJKRXVHRQWKHFRUQHU

ZKLFKWKDQNVWR&ODUDLVDOZD\VIXOORIJKRVWVDQGVSLULWV


11/46

&KDSWHU

6XPPDU\

:KHQ%ODQFDLVDERXWWKUHH\HDUVROGWKHIDPLO\GHFLGHVWRVSHQGDVXPPHU

WRJHWKHULQ7UHV0DULDV7KHPRPHQWWKH\DUULYH%ODQFDPHHWV3HGUR7HUFHUR

*DUFLDDQGWKH\IDOOLQORYH&ODUDLVLQFUHGLEO\KDSS\LQ7UHV0DULDV)RUWKHILUVW

DQGRQO\WLPHLQKHUOLIHVKHEHFRPHVLQYROYHGLQHDUWKO\SXUVXLWVGHYRWLQJKHUVHOI


12/46

WRWHDFKLQJWKHZRUNHUVDQGWKHLUIDPLOLHVEDVLFHGXFDWLRQQXWULWLRQDQGKHDOWKFDUH

6KHDOVRWULHVWRWHDFKWKHZRPHQDERXWJHQGHULQHTXDOLW\EXWWKH\UHDOL]HWKDWWKH\

FDQQRWIROORZKHUDGYLFH(VWHEDQEHFRPHVHQUDJHGZKHQKHGLVFRYHUVKHUHIIRUWV

ZLWKWKHZRPHQEXWVKHVLPSO\LJQRUHVKLPDQGGLIIXVHVKLVDQJHU

$WWKHHQGRIWKHVXPPHU&ODUDLVVRFRQWHQWLQ7UHV0DULDVWKDWWKH\VWD\)HUXODLV

WKHRQO\PHPEHURIWKHIDPLO\ZKRLVXQKDSS\WKHUH6KHEHJLQVWRKDYHQHUYRXV

ILWVEXWVKHUHIXVHVWROHDYHEHFDXVHVKHGRHVQRWZDQWWREHVHSDUDWHGIURP&ODUD

WKHRQO\SHUVRQVKHHYHUWUXO\ORYHVLQKHUOLIH

,QWKHIDOODQDQWSODJXHVWULNHV7UHV0DULDV(VWHEDQWULHVHYHU\WKLQJWRULGWKH

SURSHUW\RIWKHDQWVLQFOXGLQJEULQJLQJLQ0U%URZQDPLGJHWJULQJRDJULFXOWXUDO

WHFKQLFLDQVSHFLDOL]LQJLQLQVHFWLFLGHV$IWHUKHDULQJWKDW0U%URZQVPHWKRGZLOO

WDNHPRQWKVWRVXFFHHGWRRORQJDWLPHWRVDYH7UHV0DULDVLQGHVSHUDWLRQWKH\JR

WR3HGUR*DUFLDZKRVXFFHVVIXOO\ULGV7UHV0DULDVRIWKHDQWV3HGUR*DUFLDVKRZV

WKHPWKHZD\RXWDVKHH[SODLQVWR0U%URZQDOOWKDWZDVQHHGHGZDVWR>7@HOO

WKHPWRJRWKDWWKH\UHDQXLVDQFHKHU7KH\XQGHUVWDQG

$W7UHV0DULDV&ODUDEHFRPHVSUHJQDQWDJDLQDQGWKH\PXVWUHWXUQWRWKHFLW\VR

WKDWVKHFDQKDYHDFFHVVWRDSSURSULDWHPHGLFDODWWHQWLRQ&ODUDKDVDGLIILFXOW

SUHJQDQF\GXULQJZKLFKVKHVWRSVVSHDNLQJ(VWHEDQLVQRWFRPIRUWDEOHLQWKHKRXVH

LQWKHFLW\ILOOHGZLWKZRPHQEXWKHIHHOVWKDWWKH\QHHGKLVPDOHSUHVHQFH7RZDUG

WKHHQGRIKHUWHUP&ODUDEHJLQVVSHDNLQJDJDLQWRDQQRXQFHWKDWVKHZLOOKDYH

WZLQVQDPHG-DLPHDQG1LFRODV(VWHEDQLVIXULRXVWKDWRQHRIWKHPZLOOQRWEHQDPHGDIWHUKLPDQGLQDUDJHKHJRHVRIIWRWKHEHVWEURWKHOLQWKHFLW\WKH

&KULVWRSKHU&ROXPEXV7KHUHKHUHHQFRXQWHUV7UDQVLWR6RWR7UDQVLWRLVKDSSLO\

ZRUNLQJDVDQLQGHSHQGHQWSURVWLWXWHDWWKH&KULVWRSKHU&ROXPEXVZLWKDUHSXWDWLRQ

DVWKHEHVWZRPDQWKH\KDYH+RZHYHU7UDQVLWRVWLOOZDQWVPRUHLQGHSHQGHQFH6KH

DQG(VWHEDQVKDUHQRWRQO\JUHDWVH[XDODSSHWLWHVEXWDOVRJUHDWDPELWLRQDQGVKH

WHOOVKLPRIKHUGUHDPWRRSHQXSDFRRSHUDWLYHRIZKRUHVDQGIDJV

$IHZGD\VODWHU6HYHURDQG1LYHDGHO9DOOHGLHLQDFDUDFFLGHQWLQZKLFK1LYHDV

KHDGLVVHYHUHGIURPKHUERG\(YHU\RQHLQWKHIDPLO\WULHVWRVKHOWHU&ODUDIURPWKH

QHZVEHFDXVHRIKHUSUHJQDQF\&ODUDILQGVRXWWKURXJKKHUGUHDPVDQG

SUHPRQLWLRQV6LQFHUHVFXHUVZHUHXQDEOHWRORFDWH1LYHDVKHDGVKHLVEXULHG

ZLWKRXWLWDQRWKHUIDFWWKDWHYHU\RQHWULHVWRKLGHIURP&ODUD&ODUDDOVRKRZHYHU

NQHZDERXWWKHVHYHUHGKHDGDQGLVGHWHUPLQHGWRILQGLW)HUXODDJUHHVWRKHOSKHU

DQGIROORZLQJ&ODUDVLQVWLQFWVWKH\GULYHRXWWRWKHORFDWLRQRIWKHDFFLGHQWDQG

UHFRYHUWKHKHDGZKHUHKXQGUHGVRIUHVFXHUVPLVVHGLW2QWKHZD\KRPH&ODUD


13/46

JRHVLQWRODERUDQG)HUXODGHOLYHUVWKHWZLQER\VDVVRRQDVWKH\DUULYHKRPH7KH

WZRZRPHQGRQRWWHOODQ\RQHDERXWKDYLQJIRXQG1LYHDVKHDGDQGWKH\KLGHLWLQD

KDWER[:KHQ7KH\WHOO(VWHEDQDERXWLWKHPRYHVLWWRWKHEDVHPHQW

1DQDPRYHVLQZLWK&ODUDDQG(VWHEDQDQGVKHDQG)HUXODWDNHFDUHRIWKHIDPLO\

ZKLOH&ODUDEHFRPHVLQWHQVHO\LQYROYHGZLWKWKHWKUHH0RUDVLVWHUVDQGWKHLUHFOHFWLF

JURXSRIVSLULWXDOLVWIULHQGV6KHUHPDLQVREOLYLRXVWRWKHLQWHQVHULYDOU\RYHUKHU

DIIHFWLRQEHWZHHQ1DQDDQG)HUXODDQGPXFKPRUHLPSRUWDQWO\EHWZHHQ)HUXODDQG

(VWHEDQ

2YHUWKH\HDUV)HUXODKDGFRPHWRORYH&ODUDZLWKDMHDORXVSDVVLRQZKLOH

(VWHEDQVORYHIRU>&ODUD@KDGJURZQWRWKHSRLQWZKHUHLWKDGEHFRPHDQ

REVHVVLRQ7KH\HQWHULQWRDULYDOU\ZKLFKFRPHVWRDKHDGZKHQ(VWHEDQUHWXUQV

KRPHIURP7UHV0DULDVXQH[SHFWHGO\WRILQG)HUXODVOHHSLQJLQ&ODUDVEHG,QD

UDJHKHWKURZVKLVVLVWHURXWRIWKHKRXVHVKHOHDYHVFXUVLQJKLPWRHWHUQDO

ORQHOLQHVV&ODUDPDNHVDIHZDWWHPSWVWRILQG)HUXODEXWZKHQVKHUHDOL]HVWKDW

)HUXODGRHVQRWZDQWWREHIRXQGVKHUHWXUQVWRGHYRWLQJKHUWLPHWRKHUVSLULWXDOLVW

DFWLYLWLHVDQGWRUDLVLQJ%ODQFDDVKHUPRWKHUUDLVHGKHUZKLOHWKHWZLQER\VDUHVHQW

RIIWRERDUGLQJVFKRRO

7KHIDPLO\FRQWLQXHVWRUHWXUQWR7UHV0DULDVDWYDULRXVLQWHUYDOVGXULQJZKLFK

%ODQFDDQG3HGUR7HUFHUR*DUFLDVORYHJURZV3HGUR7HUFHUR*DUFLDDOVREHFRPHV

LQFUHDVLQJO\LQYROYHGLQRUJDQL]LQJIRUMXVWLFHDW7UHV0DULDV'XULQJWKLVWLPH

3DQFKDGLHVOHDYLQJEHKLQGWKHVRQVKHDQG(VWHEDQKDGWRJHWKHUDVZHOODVKHUJUDQGVRQDOVRQDPHG(VWHEDQ*DUFLD

$QDO\VLV

$OWKRXJKLWLQYROYHVDJUHDWGHDORIVHULRXVVRFLDODQGSROLWLFDOFRPPHQWDU\WKHSORW

RI7KH+RXVHRIWKH6SLULWVLVGULYHQE\DVHULHVRIURPDQFHV(VWHEDQDQG&ODUDV

%ODQFDDQG3HGUR7HUFHURV$OEDDQG0LJXHOV(YHU\JUHDWORYHDIIDLUDQGHYHU\

PDUULDJHLQ7KH+RXVHRIWKH6SLULWVLVLQLWLDWHGRQILUVWVLJKWDWDYHU\\RXQJDJH

DOWKRXJKWKRVHLQYROYHGRIWHQGRQRWUHDOL]HZKDWLVKDSSHQLQJDWWKHWLPH%ODQFD

DQG3HGUR7HUFHURDUHDSULPHH[DPSOH7KHLUORYHDOVRUHSUHVHQWVWKHILUVWJUHDWEUHDFKRIFODVVGLYLVLRQVLQWKHQRYHO

7KHGLYLVLRQEHWZHHQWKHELJKRXVHRQWKHFRUQHUDQG7UHV0DULDVFRUUHVSRQGVWR

WKHWKHPHRIFXOWXUHYHUVXVQDWXUHRUFLYLOL]DWLRQYHUVXVEDUEDULW\2Q(VWHEDQVILUVW

WULSWR7UHV0DULDVLWVHHPVDVLIWKHGLYLVLRQVEHWZHHQHDFKZRXOGEHVLPSOH7UHV

0DULDVZDVQDWXUDODQGXQFLYLOL]HG:KLOHQDWXUHZDVERXQWLIXODQGKDGUHVWRUDWLYH


14/46

SRZHUVLWQHHGHGWKHLQIOXHQFHRIFLYLOL]DWLRQLQRUGHUWREHSURGXFWLYHLQDXVHIXO

PDQQHU7KLVWULSWR7UHV0DULDVVKRZVWKRVHGLYLVLRQVWREHPRUHFRPSOLFDWHG,WLV

RQO\LQ7UHV0DULDVWKDW&ODUDEHFRPHVDWWHQWLYHWRSUDFWLFDOSURGXFWLYHGHWDLO

UHYHUVLQJWKHRUGHURILQIOXHQFH:KLOH3HGUR7HUFHURLVGHVFULEHGDVDFDQQLEDO

WKHSDUDJRQRIEDUEDULVPKLVDFWLYLW\FRQVLVWVRISOD\LQJZLWK%ODQFDZKLOH(VWHEDQIOLHVLQWRZLOGGHVWUXFWLYHUDJHV7KHPRVWVWULNLQJPRPHQWRIUHYHUVDO

KRZHYHULVWKHHSLVRGHRIWKHDQWV7KHDQWVUHSUHVHQWWKHGHVWUXFWLYHRUEDUEDULF

VLGHRIQDWXUH(VWHEDQWULHVWRJHWULGRIWKHDQWVZLWKDOOVRUWVRIPHWKRGVKHEULQJV

LQIURPFLYLOL]DWLRQ1RUWK$PHULFDRUWKHJULQJRVLQWKHILJXUHRI0U%URZQ

UHSUHVHQWWKHPRVWH[WUHPHYHUVLRQVRIFLYLOL]DWLRQDQGSURJUHVVPRGHUQLW\DQG

VFLHQFH0U%URZQVPHWKRGRIUHPRYLQJWKHDQWVKRZHYHUZKLOHLWPD\ZRUN

WDNHVWRRORQJ3HGUR*DUFLDDQROGSHDVDQWLVWKHRQO\RQHZKRLVDEOHWRFXUHWKH

DQWSODJXH+HUHPRYHVWKHDQWVLQWKHPRVWQDWXUDORIPHDQVVLQJLQJDQGWDONLQJ

WRWKHP

(VWHEDQFDQQRWWROHUDWH)HUXODVSRVVLEOHOHVELDQLVPHVSHFLDOO\QRWZKHQLWPD\

LQYROYHKLVRZQZLIH)HUXODVOHVELDQLVPLVQHYHUFRQILUPHGRUGHQLHG%DFNJURXQG

VXJJHVWLRQVRIERWKOHVELDQLVPLQ)HUXODVFDVHDQGKRPRVH[XDOLW\LQWKHILJXUHRI

WKHPDOHSURVWLWXWHVZKRZRUNZLWK7UDQVLWR6RWRDUHIRXQGWKURXJKRXWWKHQRYHO

EXWDUHQRWDPDMRUWKHPH(VWHEDQVYLROHQWUHDFWLRQWRILQGLQJ)HUXODLQ&ODUDVEHG

KRZHYHUKDVLPSRUWDQWODVWLQJHIIHFWV7KHHQGRIWKLVFKDSWHULVLQIDFWIXOOLI

HYHQWVWKDWZLOODWWDLQJUHDWLPSRUWDQFHODWHU,QDGGLWLRQWR)HUXODVFXUVHWKH

FRPPXQLVWWHDFKLQJVRI)DWKHU-RVH'XOFH0DULDWKHILJXUHRI(VWHEDQ*DUFLDDQG

3HGUR7HUFHURVVRQJZLOOUHDSSHDU:KLOHPDQ\DSSDUHQWO\XQLPSRUWDQWGHWDLOVDUH

VLJQDOHGE\WKHQDUUDWRUVDVIRUHVKDGRZLQJHYHQWVWRFRPHWKLVLVQRWDOZD\VWKH

FDVH7KHQRYHOLVDOVRILOOHGZLWKGHWDLOVWKDWKDYHQRODVWLQJLPSRUWDQFH7KHHIIHFW

RIWKHUHDSSHDUDQFHRIVRPHGHWDLOVZLWKKHLJKWHQHGLPSRUWDQFHODWHURQSXWVDQ

HPSKDVLVRQGHWDLOLQJHQHUDOVRWKDWZKLOHWKHPDMRUURPDQFHSORWVFRQWLQXHWKH\

GLPLQLVKLQUHODWLYHLPSRUWDQFH


15/46

&KDSWHU7KH/RYHUV

6XPPDU\

'HVSLWHWKHREVWDFOHVRIIDPLO\DQGQDWXUDOGLVDVWHUDV%ODQFDDQG3HGUR7HUFHUR

*DUFLDJURZXSWKHLUORYHDQGFRPPLWPHQWGHHSHQV7KH\FRQWLQXHWRVSHQG

VXPPHUVWRJHWKHU$WWKLUWHHQ%ODQFDLVWKHILUVWRIWKHWZRWRHQWHUDGROHVFHQFH

$OWKRXJKWKLVPDUNVDVKLIWLQWKHLUUHODWLRQVKLSLWLVDJUDGXDORQHDQGRQO\LQWKHGLUHFWLRQRIJUHDWHUFRPPLWPHQWDQGJUHDWHUUHVLVWDQFHWRWKHRXWVLGHIRUFHVWKDW

ZRXOGNHHSWKHPDSDUW7KDW\HDU%ODQFDWHOOV3HGUR7HUFHURWKDWVKHZDQWVWR

PDUU\KLPZKHQVKHJURZVXS+HVKDUHVWKHVHQWLPHQWEXWDOUHDG\KDVDPXFK

PRUHGHYHORSHGVHQVHRIWKHJUHDWVRFLDOEDUULHUVEHWZHHQWKHP7KH\EHJLQWRKLGH

WKHLUDWWDFKPHQWIURPRWKHUV

7KDWZLQWHU)HUXODGLHV7KHIDPLO\OHDUQVRIKHUGHDWKZKHQ)HUXODVVSLULWFRPHV

WRELG&ODUDIDUHZHOORQKHUZD\RXWRIWKLVZRUOG&ODUDLVWKHRQO\RQHZKR

UHDOL]HVZKDWKDVKDSSHQHG6KHZKLVNV(VWHEDQRIIZLWKKHUWRILQGZLWKWKHKHOS

RI)DWKHU$QWRQLR)HUXODVERG\7KH\GLVFRYHUWKDWVLQFHVKHZDVNLFNHGRXWRIWKH

KRXVH)HUXODOLYHGLQRQHRIWKHSRRUHVWSDUWVRIWKHFLW\UHIXVLQJWRRSHQWKHOHWWHUV

RUXVHWKHPRQH\WKDW(VWHEDQVHQWKHU7KHRQO\LQGXOJHQFHVKHDOORZHGKHUVHOI

ZDVGUHVVLQJXSLQWKHIDQF\FORWKLQJDQGZLJVVKHIRXQGLQWKHWUDVK)HUXODV

UHIXVDORIKLVPRQH\VXFFHHGVLQPDNLQJ(VWHEDQIHHOLQFUHGLEO\JXLOW\EXWKHWXUQV

WKHIHHOLQJLQWRDQJHUWRZDUGVKLVVLVWHUVWLOOIDLOLQJWRUHDOL]HWKDWWKLVYHU\DQJHU


16/46

KDGWXUQHG&ODUDDZD\IURPKLPZKHQKHKDGNLFNHGKLVVLVWHURXW&ODUDZDVKHV

)HUXODVERG\KHUVHOIDQGKDVKHUEXULHG

%\WKHQH[WVXPPHU3HGUR7HUFHURKDVDOVRHQWHUHGDGROHVFHQFH7KHGHYHORSPHQW

RIKLVERG\LVDFFRPSDQLHGE\KLVJURZWKDVDUHYROXWLRQDU\WKLQNHU+HDQG%ODQFD

EHJLQPHHWLQJVHFUHWO\HYHU\QLJKWWKDWVXPPHUDQGGHYHORSHODERUDWHFRGHG

V\VWHPVE\ZKLFKWRFRPPXQLFDWHGXULQJWKHUHVWRIWKH\HDU7KLVFRQWLQXHVIRU

WKUHH\HDUV7KHQDQQRXQFHGDVXVXDOE\&ODUDDWUHPHQGRXVHDUWKTXDNHURFNVWKH

HQWLUHFRXQWU\

(YHU\EXLOGLQJDW7UHV0DULDVLVGHFLPDWHGDQG(VWHEDQLVFUXVKHGXQGHUWKHKRXVH

+HOLYHVEXWHYHU\ERQHLQKLVERG\DVEURNHQDQGKHLVFRQILQHGIRUPRQWKVWRD

EHGDQGWKHQWRDZKHHOFKDLU1DQDLQWKHFLW\GLHVRIIULJKW,QWKHZDNHRIWKH

WUHPRUGLVHDVHDQGSRYHUW\UDYDJHWKHFRXQWU\2XWRIQHFHVVLW\&ODUDIRUWKHILUVW

WLPHLQKHUOLIHKDVEHJXQWRDWWHQGWRHYHU\GD\PDWHULDOFKRUHVDVVXPLQJDORQJ

ZLWK3HGUR6HJXQGR*DUFLDUHVSRQVLELOLW\IRUUHEXLOGLQJ7UHV0DULDV7KHFKLOGUHQ

DUHVHQWEDFNWRVFKRROLQWKHFDSLWDOEXWDIWHUDIHZPRQWKV%ODQFDFRQYLQFHVWKH

QXQVDWKHUVFKRROWKDWVKHLVFRPLQJGRZQZLWKWXEHUFXORVLVDQGVKHUHWXUQVWR

7UHV0DULDV&ODUDLVDZDUHRIWKHUHDOUHDVRQIRU%ODQFDVUHWXUQEXWGRHVQRWWHOO

%ODQFDKRSLQJWKDWWKLVZLOOVRPHKRZKHOSWRTXHOOWKHUHODWLRQVKLS%ODQFD

FRQWLQXHVWRIHLJQDQ\QXPEHURILOOQHVVHVVRWKDWVKHFDQUHPDLQQHDU3HGUR

7HUFHUR:KLOHVKHZDVDWVFKRROQHZVRI3HGUR7HUFHURVUHYROXWLRQDU\DFWLYLWLHV

GLVWULEXWLQJFRPPXQLVWSDPSKOHWVFDXVHGKLPWREHEDQQHGIURP7UHV0DULDV+H

UHWXUQVDVRIWHQDVSRVVLEOHXQGHUYDULRXVGLVJXLVHVWRPHHW%ODQFD&ODUDNHHSV

%ODQFDEXV\KHOSLQJKHUZLWKWKHFKRUHVDQG3HGUR*DUFLDWHDFKHVKHUWRZRUNZLWK

FOD\6KHEHFRPHVDQH[SHUWDWPDNLQJFUHFKHVQDWLYLW\VFHQHVDQGTXLFNO\JDLQV

IDPH(VWHEDQLQKLVFRQILQHPHQWEHFRPHVLQFUHDVLQJO\GHVSRWLFDQG&ODUDVEHQLJQ

LQGLIIHUHQFHWRZDUGKLPLVUHSODFHGE\DFWLYHGLVOLNH%ODQFDDOVRZLWQHVVHVKHU

IDWKHUVPRXQWLQJYLROHQFH

$QDO\VLV

7KHLVVXHRIFODVVVWUXJJOHFRPHVWRWKHIRUHRIWKHFKDUDFWHUVFRQVFLRXVQHVV,W

WDNHVWKHIRUPRIDJURZLQJFRQIOLFWEHWZHHQ0DU[LVW&RPPXQLVW6RFLDOLVWVZKRVH

PDLQILJXUHKHUHLV3HGUR7HUFHURDQG&RQVHUYDWLYHVZKRVHPDLQILJXUHLV(VWHEDQ

$WWKLVSRLQWWKHUHLVOLWWOHGLYLVLRQEHWZHHQ0DU[LVWV&RPPXQLVWVDQG6RFLDOLVWV

7KLVGLYLVLRQRISROLWLFDOJURXSVUHIOHFWVKLVWRULFDOHYHQWVLQPXFKRI6RXWK$PHULFD

DWWKHDSSUR[LPDWHWLPHRIWKHDFWLRQRIWKHVWRU\DURXQGWKHV$VLQ 7KH

+RXVHRIWKH6SLULWVLQ/DWLQ$PHULFDWKH&DWKROLF&KXUFKWHQGHGWREHRQWKHVLGH

RIWKH6RFLDOLVWV7KHJURZLQJVRFLDOXQUHVWLVSDUDOOHOHGE\DQDWXUDOXQUHVW1DWXUH


17/46

H[SORGHVILUVWLQWKHIRUPRIWKHHDUWKTXDNH

$OWKRXJKKHUUHODWLYHVWKLQN&ODUDZLOOEHXQGXO\XSVHWE\WKHGHDWKRIKHUSDUHQWV

&ODUDGRHVQRWVHHGHDWKDVDFDWDFO\VPLFHYHQW7KLVLVLQSDUWGXHWRWKHIDFWWKDW

KHUFODLUYR\DQFHDOORZVKHUWRFRPPXQHZLWKWKHVSLULWVRIWKHGHDG&ODUDYLHZVOLI

HDQGGHDWKDVSDUWRIDXQLILHGF\FOHQRWDVRSSRVLWHSROHV6KHH[SHULHQFHVQR

JUHDWGLVWUHVVDWDQ\RIWKHGHDWKVLQWKHQRYHO

0RGHUQL]DWLRQLQWKHIRUPRIWHFKQRORJ\JDLQVLPSRUWDQFH,WVDPELYDOHQWVWDWXVKDV

DOUHDG\EHHQSRUWUD\HGE\6HYHURDQG1LYHDVFDUZKLFKERWKDOORZVWKHPJUHDW

IUHHGRPDQGFDXVHVWKHLUGHDWK7HFKQRORJ\DUULYHVLQ7UHV0DULDVLQWKHIRUPRID

WHOHSKRQH,WLVVWLOOQHZDQGXQVWDEOHKRZHYHU7KHFKDQJLQJVWDWXVRIWKHZRUOGLV

DOVRUHIOHFWHGLQ-DLPHDQG1LFRODVVVFKRROLQJH[SHULHQFH,QWKHSUHYLRXV

JHQHUDWLRQWKHSULPDU\IRUHLJQLQIOXHQFHZDV6SDLQDVHYLGHQFHGLQWKHUHIHUHQFHWR

UR\DOW\YLD'RQD(VWHUVPDLGHQQDPH)RU(VWHEDQDQGKLVFKLOGUHQ%ULWDLQDQGWKH

8QLWHG6WDWHVEHFRPHWKHPRVWLPSRUWDQWIRUHLJQSRZHUV7KLVVKLIWLVHPSKDVL]HG

ZKHQ&ODUDDQG%ODQFDQRWLFHWKDW-DLPHDQG1LFRODVVVFKRROLQJKDVOHGWKHPWR

VSHDN6SDQLVKZLWKDQ2[IRUGDFFHQW

&KDSWHU5HYHQJH

6XPPDU\

$IWHUWKH\ILQLVKUHEXLOGLQJIURPWKHHDUWKTXDNHWKH7UXHEDIDPLO\VWD\VRQDW7UHV

0DULDV$V(VWHEDQVKHDOWKLPSURYHV&ODUDFRQWLQXHVWRSXOODZD\IURPKLP$V

VRRQDVVKHFDQKLUHSHRSOHWRWDNHRYHUWKHKRXVHKROGFKRUHVVKHGRHVDQGVKH

UHWXUQVWRKHUWHDFKLQJWRKHUGLDULHVDQGWRKHUSUHGLFWLRQV6KHEHJLQVORFNLQJKHU


18/46


19/46

WKHGLIIHUHQFHWKDW3HGUR7HUFHURDQG%ODQFDORYHHDFKRWKHU$WWKLV(VWHEDQKLWV

&ODUDVRKDUGWKDWVKHORVHVVHYHUDOWHHWK+HLPPHGLDWHO\DSRORJL]HVEXW&ODUD

QHYHUVSHDNVWRKLPDJDLQIRUDVORQJDVWKH\OLYH

7ZRGD\VODWHU&ODUDDQG%ODQFDUHWXUQWRWKHFLW\3HGUR6HJXQGR*DUFLDDOVR

OHDYHV7UHV0DULDV(VWHEDQ7UXHEDLVGHHSO\GLVWUDXJKWEXWWXUQVDOORIKLV

GLVDSSRLQWPHQWDQGDQJHUWRZDUG3HGUR7HUFHUR+HWULHVWRILQGKLPEXWQRRQHLQ

WKHDUHDZLOOSURYLGHDQ\UHDOKHOSGHVSLWHWKHJHQHURXVUHZDUGV(VWHEDQSURPLVHV

7KHQRQHGD\(VWHEDQ*DUFLDFRPHVIRUZDUGDQGRIIHUVWRVKRZKLPZKHUH3HGUR

7HUFHURLVLQUHWXUQIRUWKHUHZDUG(VWHEDQ*DUFLDOHDGV(VWHEDQ7UXHEDWR3HGUR

7HUFHUREXWLQKLVGHVLUHWRLQIOLFWRQ3HGUR7HUFHURDVORZDQGSDLQIXOGHDWK

(VWHEDQ7UXHEDPLVVHVNLOOLQJKLPDQGRQO\PDQDJHVWRFKRSRIIWKUHHRIKLVILQJHUV

,QWKDWPRPHQWKRZHYHUKHDOVRUHDOL]HVWKHKHLVJODGQRWWRKDYHNLOOHGDPDQ

6WLOOZKHQ(VWHEDQ*DUFLDDVNVIRUKLVUHZDUG(VWHEDQ7UXHEDJLYHVWKHER\RQO\D

VODSDQGFDOOVKLPDWUDLWRU

$QDO\VLV

$OWKRXJKKLVFKDSWHULQFOXGHVDJUHDWGHDORIDFWLRQLWLVDOOTXLWHVHOIH[SODQDWRU\

0DQ\RIWKHWKHPHVDOUHDG\LQWURGXFHVFRQWLQXHWRGHYHORSEXWWKHFKDSWHUVPDLQ

IXQFWLRQLVWRDGYDQFHWKHSORW

&RXQW-HDQGH6DWLJQ\FRXOGHDVLO\EHDKROORZFKDUDFWHU+HGRHVLQIDFWVHUYHD

IDLUO\VLPSOHIXQFWLRQWRGHQRXQFH%ODQFDDQGWKHQODWHUWRFRYHURYHUKHU

SUHJQDQF\+RZHYHU-HDQGH6DWLJQ\VFKDUDFWHURR]HVZLWKVLJQLILFDQWGHWDLO$VD)UHQFKPDQKHUHSUHVHQWVVWHUHRW\SHVRI(XURSHDQGHFDGHQFH+LVP\VWHULRXV

DSSHDUDQFHLQ6RXWK$PHULFDDQGVXEVHTXHQWDWWDFKPHQWWRWKH7UXHEDVVKRZKRZ

6RXWK$PHULFDQDULVWRFUDF\RYHUYDOXHV(XURSHDQFODVVDQGKRZLPSRYHULVKHG

(XURSHDQVDEXVHWKHVLWXDWLRQIRUWKHLURZQILQDQFLDOJDLQ7KHVHGHWDLOVFRQWLQXHWR

DFFXPXODWHLQVXEVHTXHQWFKDSWHUV

$VWKH\UHDFKDGXOWKRRG-DLPHDQG1LFRODVGLVWXUEDQ\FOHDUGLFKRWRP\EHWZHHQ

PDOHDQGIHPDOHFKDUDFWHULVWLFV8SXQWLOWKLVSRLQWWKHXSSHUFODVVPHQRIWKHQHZJHQHUDWLRQKDYHEHHQFRQVHUYDWLYHZKLOHWKHSHDVDQWPHQDQGDOORIWKHZRPHQ

KDYHEHHQOLEHUDO-DLPHLQKLVSROLWLFDOOLEHUDOLVPDQG1LFRODVLQKLVVRFLDO

OLEHUDOLVPGLVWXUEWKLVJHQGHUGLYLVLRQ

(VWHEDQ7UXHEDKDVEHHQDQLQFUHGLEO\YLROHQWPDQKLVHQWLUHOLIHHVSHFLDOO\WRZDUG

ZRPHQ$OWKRXJKQRRQHKDVHYHUFRQGRQHGKLVDFWLRQVKHKDVQRWHYHUEHHQ


20/46

VHYHUHO\SXQLVKHGIRUWKHP,QWKLVFKDSWHU(VWHEDQEHJLQVWRIHHOWKHUHVXOWVRIKLV

YLROHQFH)URPWKLVSRLQWRQKHZLOOLQFUHDVLQJO\IHHOWKRVHUHVXOWV+HEHJLQVWRIHHO

UHPRUVHIRUKLVDQJU\RXWEXUVWVEXWDOZD\VWRRODWH(VWHEDQVXIIHUVJUHDWO\IURP

&ODUDVUHIXVDOWRVSHDNWRKLPRUWRDOORZKLPWRWRXFKKHUEXWKHGRHVQRWFXUEKLV

YLROHQFH$IWHUOHDUQLQJRI%ODQFDVSUHJQDQF\(VWHEDQVHHNVUHYHQJHRQ3HGUR7HUFHUR7KDWUHYHQJHLVWKHPRVWGLUHFWVRXUFHRIWKHFKDSWHUVWLWOH+RZHYHULQ

ZUHDNLQJUHYHQJHRQ3HGUR7HUFHUR(VWHEDQDOVROHDUQVWKDWUHYHQJHLVQRWDV

VLPSOHRUDVVDWLVI\LQJDVKHZLVKHV,QDGGLWLRQDOORIWKRVHZKR(VWHEDQKDV

ZURQJHGEHJLQWRJHWUHYHQJHRQKLP(VWHEDQ*DUFLDUHDSSHDUV+LVFKDUDFWHUDQG

KLVQHHGIRUUHYHQJHKDYHEHHQVKDGRZGHWDLOVVLQFH(VWHEDQVILUVWUDSHRI3DQFKD

(VWHEDQ*DUFLDUHYHDOVKLPVHOIQRWRQO\WRKDUERUDYHQJHIXOZLVKDJDLQVW(VWHEDQ

7UXHEDEXWDOVRWREHDWUDLWRU,WPD\EHLQWXUQLQJDJDLQVW3HGUR7HUFHURWKDW

(VWHEDQ*DUFLDZDVDWWHPSWLQJWRDOO\KLPVHOIZLWK(VWHEDQ7UXHED,QWKDWFDVHWKH

DFWLRQZRXOGQRWFOHDUO\VLWXDWH(VWHEDQ*DUFLDDVDWUDLWRU+RZHYHULI(VWHEDQ7UXHEDVDFFXVDWLRQGRHVQRWUHIOHFWDFXUUHQWVLWXDWLRQLWFUHDWHVDQGSUHGLFWVD

IXWXUHRQH


21/46

&KDSWHU7KH%URWKHUV

6XPPDU\

%DFNLQWKHFLW\&ODUDSXWV%ODQFDWRZRUNKHOSLQJKHURXWDURXQGWKHKRXVHDQG

UHVXPHVKHUSV\FKLFSXUVXLWVZLWKWKHWKUHH0RUDVLVWHUVDQGDQ\QXPEHURIRWKHUV

ZKRZDQGHUWKURXJK:KHQ-DLPHDQG1LFRODVILQLVKKLJKVFKRROWKH\UHWXUQWRWKH

ELJKRXVHRQWKHFRUQHU-DLPHHQWHUVWKHXQLYHUVLW\WRVWXG\PHGLFLQHDQG1LFRODVVHDUFKHVIRUKLVGHVWLQ\$OWKRXJKVKHKDVQHYHUEHHQYHU\FORVHWRKHUWZRVRQV

&ODUDEXLOGVDFRPIRUWDEOHDGXOWUHODWLRQVKLSZLWKWKHP-DLPHILQDOO\QRWLFHVWKDW

%ODQFDLVSUHJQDQWDQGWHOOV&ODUDZKRDOUHDG\NQHZ%ODQFDDGPLWVLWDVZHOO

1LFRODVIHHOVWKDWWKH\RXJKWWRWHOOWKHLUIDWKHUDQGVHQGVKLPDWHOHJUDP(VWHEDQLV

DJDLQLQIXULDWHGEXWWKLVWLPHKHWDNHVVOLJKWO\FDOPHUDFWLRQ+HILQGV-HDQGH

6DWLJQ\DQGLQIRUPVKLPWKDWKHPXVWQRZPDUU\%ODQFDLQUHWXUQIRUDFFHVVWRWKH

IDPLO\PRQH\(VWHEDQDQG-HDQGH6DWLJQ\FRPHWRWKHFLW\%ODQFDDWILUVWUHIXVHV

EXWDFTXLHVFHVZKHQ(VWHEDQWHOOVKHUWKDWKHKDVNLOOHG3HGUR7HUFHUR(VWHEDQ

GHYLVHVDQRXWUDJHRXVO\RVWHQWDWLRXVZHGGLQJZLWKVXFKDKXJHJRZQIRU%ODQFDWKDWQRRQHQRWLFHVKHUSUHJQDQF\$IWHUWKHPDUULDJH(VWHEDQVHQGV%ODQFDDQG-HDQGH

6DWLJQ\WRWKH1RUWK%HIRUHWKH\OHDYH&ODUDWHOOV%ODQFDWKDWVKHLVVXUH3HGUR

7HUFHURLVDOLYH

(VWHEDQVWD\VRQLQWKHKRXVHLQWKHFLW\JHWWLQJLQYROYHGLQSROLWLFVZLWKWKH


22/46

&RQVHUYDWLYH3DUW\$OWKRXJKWKH\VKDUHWKHVDPHKRXVHKHDQG&ODUDVSDWKVUDUHO\

FURVV1LFRODVOHDUQV)ODPHQFRDQGEHJLQVRIIHULQJFODVVHV(VWHEDQTXLFNO\SXWVD

VWRSWRWKLVDFWLYLW\EXW1LFRODVRQO\WXUQVWRRWKHUXQXVXDOSXUVXLWVDQGEHJLQVWR

VPRNHDJRRGGHDORIKDVKLVKZKLFKQRRQHQRWLFHV+LVJLUOIULHQG$PDQGDDQGKHU

ILYH\HDUROGEURWKHU0LJXHODOVREHFRPHSDUWWLPHUHVLGHQWVDWWKH7UXHEDKRXVH-DLPHLVTXLWHGLIIHUHQWIURPKLVWZLQEURWKHU+HOLYHVDQDXVWHUHOLIHGHYRWHGWRKLV

VWXGLHVDQGWRKHOSLQJWKHSRRUDWWKHKRVSLWDOZKHUHKHZRUNVZKRPKHRIWHQ

EULQJVKRPHIRU&ODUDWRKHOSFDUH+HGRHVKRZHYHUGHYHORSDGHHSKLGGHQHYHQ

WRKLPVHOIORYHIRU$PDQGD

(VWHEDQLVUXQQLQJIRUWKH6HQDWH$VWKHHOHFWLRQVQHDUKHWXUQVWR&ODUD:LWKRXW

HYHUWDONLQJWRKLP&ODUDWDFLWO\VXSSRUWV(VWHEDQ(VWHEDQDFFHSWV&ODUDVVLOHQW

FLYLOLW\DQGVKHDWWHQGVVRFLDOHYHQWVZLWKKLPDIWHUKHLVHOHFWHG(VWHEDQUHDOL]HV

KRZHYHUWKDWKHLVQRFORVHUWRKLVIDPLO\WKDQEHIRUH+HKDVDOVRQRWLFHGWKDWKHLV

VORZO\VKULQNLQJ+HJRHVVRIDUDVWRWUDYHOWRWKH8QLWHG6WDWHVWRFRQVXOWGRFWRUV

WKHUHZKRWHOOKLPKHLVLPDJLQLQJWKLQJV

:LWKWKHKHOSRI)DWKHU-RVH'XOFH0DULD3HGUR7HUFHURKHDOVDQGPRYHVWRWKH

FLW\+HFRQWLQXHVKLVUHYROXWLRQDU\DFWLYLWLHVDQGPDLQWDLQVKLVIULHQGVKLSZLWK

-DLPH1RWZDQWLQJWREHDVVRFLDWHGZLWKKLVIDWKHUVFRQVHUYDWLYHSROLWLFV-DLPH

GHFLGHVWRFKDQJHKLVODVWQDPH(VWHEDQDWILUVWWULHVWRIRUELGWKLVEXWZKHQ-DLPH

UHVRUWVWRJLYLQJDZD\KLVSDQWVLQSXEOLF(VWHEDQJLYHVXS

1LFRODVEHFRPHVVRLQYROYHGLQKLVHFFHQWULFSXUVXLWVVXFKDVWU\LQJWRIO\DKRWDLUEDOORRQRYHUWKHPRXQWDLQVWKDWKHIRUJHWVDERXW$PDQGD$IWHUVHYHUDOZHHNVKH

QRWLFHVKHUDEVHQFHDQGJRHVWRORRNIRUKHU1LFRODVILQGV$PDQGDDQGKHUEURWKHU

LQWKHLUVPDOODSDUWPHQWUHDOL]LQJIRUWKHILUVWWLPHWKDWWKH\DUHSRRURUSKDQVDQG

WKDW$PDQGDLVSUHJQDQW$PDQGDGRHVQRWZDQWWRPDUU\1LFRODVEHFDXVHVKHGRHV

QRWORYHKLPZKLFKLQFLWHV1LFRODVVILUVWDQGRQO\GHHSIHHOLQJVIRUKHU6KHDVNV

1LFRODVWRKHOSKHUKDYHDQDERUWLRQ1LFRODVWXUQVWR-DLPHIRUKHOS$OWKRXJKKH

KDVQRW\HWILQLVKHGPHGLFDOVFKRRO-DLPHDJUHHVWRSHUIRUPWKHDERUWLRQ'XULQJ

DQGDIWHUWKHRSHUDWLRQ1LFRODVNHHSVDQXQFRPIRUWDEOHGLVWDQFHZKLOH-DLPH

GHYRWHVKLPVHOIWR$PDQGDVFDUH$PDQGDDQG0LJXHODUHVWLOOOLYLQJZLWKWKH7UXHEDVZKHQ%ODQFDVGDXJKWHU$OEDLVERUQ

$QDO\VLV

:KHUHDVWKHILUVWILYHFKDSWHUVKDYHHDFKVSDQQHGDQXPEHURI\HDUVWKHDPRXQWRI

WLPHFRYHUHGLQDVLQJOHFKDSWHUVORZVVLJQLILFDQWO\VWDUWLQJLQFKDSWHUVL[&KDSWHU

VHYHQFRYHUVDIHZPRQWKV


23/46

:LWK%ODQFDVZHGGLQJ(VWHEDQHPSOR\VWKHSRZHURIDQRVWHQWDWLRXVVKRZWR

GLVWUDFWDWWHQWLRQIURPRWKHUHYHQWV7KHIDFWWKDW%ODQFDLVTXLWHSUHJQDQWPDNHVLW

GLIILFXOWWREHOLHYHWKDWQRRQHQRWLFHG7KLVOHDGVWRWKHFRQFOXVLRQWKDWHLWKHU

HYHU\RQHDJUHHGWREHGXSHGRUHOVHWKDWWKHGUHVVVKHZRUHZDVRIH[FHHGLQJO\H[FHVVLYHSURSRUWLRQV(VWHEDQDQGRWKHUVHPSOR\VLPLODUWDFWLFVERWKEHIRUHDQG

DIWHUWKLVHYHQWLQPRUHSROLWLFDODUHQDV:KHQ3HGUR*DUFLDGLHG(VWHEDQXVHGDQ

HODERUDWHIXQHUDOWRFRYHUWKHIDFWWKDWKHGLGQRWWUHDWWKHPDQZLWKWKHUHVSHFWKH

GHVHUYHGGXULQJKLVOLIHWLPH'XULQJWKHPLOLWDU\GLFWDWRUVKLSKXJHZDOOVDQGIDQF\

JDUGHQVDUHEXLOWWRNHHSSHRSOHIURPQRWLFLQJWKHHYHULQFUHDVLQJQXPEHUVRI

EHJJDUV$OORIWKHVHWDFWLFVHPSOR\WKHYDOXDWLRQRIIRUPRYHUVXEVWDQFH

%ODQFDVPDUULDJHWR-HDQGH6DWLJQ\DOVRUHHPSKDVL]HVWKHLPSRUWDQFHRIJHQHDORJ\

DFFRUGLQJWRQDPH(VWHEDQLVZLOOLQJWRDFFHSWDJUDQGFKLOGKHNQRZVWREHERUQ

RXWRIZHGORFNDVORQJDVWKHFKLOGKDVDQDSSURSULDWHODVWQDPH7KHEORRG

UHODWLRQVKLSLQWKLVJHQHDORJ\LVXQLPSRUWDQWEXWWKHRIILFLDOEHDULQJRIDVRFLDOO\

FRUUHFWODVWQDPHLVRIXWPRVWLPSRUWDQFHGHVWUR\LQJWKHQRWLRQWKDWJHQHDORJ\

SDVVHVWKURXJKELRORJ\RUEORRGOLQHV

$OWKRXJKWKHHYHQWVLQ%ODQFDVOLIHDUHNH\WRWKLVFKDSWHULWVWLWOH7KH%URWKHUV

VKLIWVWKHIRFXVWR-DLPHDQG1LFRODV:KLOHWKH\ZHUHSK\VLFDOO\UHPRYHGIURPWKH

ELJKRXVHRQWKHFRUQHUDQG7UHV0DULDVWKH\ZHUHDOVRDEVHQWIURPWKHVWRU\QRZ

WKH\UHWXUQKRPHDQGHQWHUWKHSORW/LNHHYHU\PHPEHURIWKHGHO9DOOH7UXHED

IDPLO\-DLPHDQG1LFRODVDUHHFFHQWULFHDFKLQWKHLURZQZD\1LFRODVUHVHPEOHV

8QFOH0DUFRV-DLPHVFRPPLWPHQWWRVRFLDOMXVWLFHJLYHVKLPDPRUHLPSRUWDQW

SODFHLQWKHUHPDLQGHURIWKHQRYHOZKLFKLQFUHDVLQJO\IRFXVHVDURXQGWKHIDPLO\V

LQYROYHPHQWLQSROLWLFDOHYHQWV7KLVGRHVQRWFRQVWLWXWHDVKLIWLQIRFXVEXWUDWKHU

UHSUHVHQWVWKHZD\VLQZKLFKSROLWLFDOHYHQWVEHFDPHLQVHSDUDEOHIURPSULYDWH

HYHQWV:KLOH-DLPHLVGHVFULEHGDVKDYLQJWKHFRQVWLWXWLRQRIDSULHVW1LFRODVLVWKH

RQHZKREHFRPHVPRUHLQYROYHGLQVWULFWO\VSLULWXDOSXUVXLWV&ODUDVREVHUYDWLRQRI

WKLVIDFWDOORZV-DLPHWRH[SUHVVLQVRPDQ\ZRUGVWKH0DU[LVWYLHZWKDWUHOLJLRQLV

WKHRSLDWHRIWKHPDVVHV$OWKRXJKWKLVREVHUYDWLRQVHHPVWREHSOD\HGRXWLQ

1LFRODVVUHODWLYHODFNRILQYROYHPHQWZLWKSROLWLFVLWLVFRXQWHUHGE\WKHDFWLYHUROH

SULHVWVVXFKDV)DWKHU-RVH'XOFH0DULDDQGODWHUWKH9DWLFDQHPEDVV\SOD\LQ

HQVXLQJHYHQWV


24/46

&KDSWHU7KH&RXQW


25/46

6XPPDU\

%ODQFDDQG-HDQGH6DWLJQ\QHYHUFRQVXPPDWHWKHLUPDUULDJH2QWKHLUZHGGLQJ

QLJKW-HDQWHOOV%ODQFDWKDWKHKDVQRSDUWLFXODULQFOLQDWLRQIRUPDUULHGOLIHDQG

ZLOOQHYHUUHTXHVWWKDWVKHKDYHVH[ZLWKKLP%ODQFDLVJUHDWO\UHOLHYHGDQGWKH\

VHWWOHLQWRDIULHQGO\UHODWLRQVKLS$IWHUWKHLUKRQH\PRRQWKH\PRYHWRWKHIDU1RUWKRIWKHFRXQWU\EX\DQROGDEDQGRQHGYLOODDQGVHWXSKRXVH%ODQFDGRHVQRWOLNHLW

PXFKWKHUHDQGKDVOLWWOHWRGR6KHVSHQGVKHUWLPHFRUUHVSRQGLQJZLWKKHUPRWKHU

&ODUDDQGFRPPXQLFDWLQJZLWKKHUXQERUQFKLOG6KHGRHVQRWPHQWLRQ-HDQV

LQFUHDVLQJO\VWUDQJHKDELWVZKLFKEHJLQZLWKVQRUWLQJFRFDLQHVPRNLQJRSLXP

KLULQJH[WUHPHO\XQTXDOLILHG,QGLDQVDVKRXVHKROGVHUYDQWVVHWWLQJXSDQHODERUDWH

SKRWRJUDSK\VWXGLR%ODQFDLVQHYHUDOORZHGWRHQWHUDQGJRLQJWRWKHFDVLQR7KH

RQO\SDUWRIDOOWKLVZKLFKGLVWXUEV%ODQFDLVKLVUHIXVDOWRDOORZKHUWRNQRZ

DQ\WKLQJDERXWWKHLUILQDQFHVEXWWKLVVKHDOVRDJUHHVWRRYHUORRN-HDQVRRQ

HPEDUNVRQDQHZEXVLQHVVHQWHUSULVHFRYHUWO\XQHDUWKLQJDQGH[SRUWLQJ,QGLDQ

DQWLTXLWLHV%ODQFDLVQRWSHUWXUEHGE\WKLVHLWKHUXQWLOKHVWDUWVEULQJLQJ,QGLDQ

PXPPLHVLQWRWKHKRXVH'HVSLWHKHUPRWKHUVDVVXUDQFHVWKDWWKHGHDGDUHIDUOHVV

GDQJHURXVWKDQWKHOLYLQJ%ODQFDLVVXUHWKDWWKHKRXVHLVEHLQJKDXQWHGE\WKH

PXPPLHV:KHQVKHPHQWLRQVWKLVWR-HDQKLVYLROHQWGHQLDORIDQ\VXFKWKLQJ

PDNHVKHUVXVSLFLRXV2QHQLJKWVKHVQHDNVRXWZKHQVKHWKLQNVVKHKHDUVWKH

KDXQWLQJDQGWUDFHVWKHDFWLYLW\WR-HDQVSKRWRJUDSK\ODERUDWRU\7KHQH[WGD\

%ODQFDPDQDJHVWRJHWHYHU\RQHRXWRIWKHKRXVHDQGVKHEUHDNVLQWRWKHVWXGLR

7KHUHWRKHUJUHDWVXUSULVHVKHGLVFRYHUVWKDWWKHQRFWXUQDOQRLVHVFDPHQRWIURP

PXPPLHVEXWIURP-HDQDQGWKH,QGLDQVKHHPSOR\VHQJDJLQJLQGLVWUHVVLQJHURWLF

VFHQHVZKLFKWKH\PHPRULDOL]HLQSKRWRJUDSKV%ODQFDGRHVQRWZDQWKHUGDXJKWHU

H[SRVHGWRWKLVVRUWRIWKLQJDQGVRQLQHPRQWKVSUHJQDQWVKHSDFNVDEDJDQG

VQHDNVRXWWRFDWFKDWUDLQWRWKHFLW\

$QDO\VLV

$OWKRXJKRWKHUKLQWVRIVH[XDOGHYLDQFHLQ7KH+RXVHRIWKH6SLULWVKDYHEHHQQRQ

MXGJPHQWDO-HDQGH6DWLJQ\VSHUYHUVLRQLVFRQVLGHUHGGDQJHURXVWR%ODQFDVXQERUQ

FKLOG7KLVDSSDUHQWFRQWUDGLFWLRQVXJJHVWVHLWKHUWKDW%ODQFDVSURQRXQFHPHQWWKDW

VKHIHDUVIRUKHUGDXJKWHULVRQO\DQH[FXVHWROHDYH-HDQDVVKHKDVZDQWHGWRGR

IURPWKHPRPHQWWKH\PDUU\-HDQVH[DFWVH[XDOSUDFWLFHVDUHQHYHUUHYHDOHG:H

NQRZRQO\WKDWWKH\LQYROYHFRVWXPHVSKRWRJUDSKVDQG,QGLDQPHQ8QWLOVKH

GLVFRYHUVZKDWOLHVLQWKHSKRWRJUDSK\VWXGLR%ODQFDVHHPVKDSS\HQRXJKZLWKKHU

IULHQGO\QRQVH[XDOUHODWLRQVKLSZLWK-HDQ+RZHYHUEXLOGLQJXSWRKHUGLVFRYHU\

RIWKHSKRWRJUDSK\VWXGLRLVKHULQFUHDVLQJDZDUHQHVVRIKLVLOOHJDOEXVLQHVVGHDOLQJV


26/46

DQGKLVGUXJXVH

/LNHRWKHUHOHPHQWVRIWKHQRYHO-HDQVWUDIILFLQFRQWUDEDQG,QGLDQDUWLIDFWVUHIOHFWV

DFWXDOHYHQWVLQPDQ\/DWLQ$PHULFDQFRXQWULHV0DJLFDO5HDOLVPLVDOLWHUDU\

PRYHPHQWEDVHGRQFRPELQLQJDUWLVWLFFUHDWLRQZLWKVRFLDOFRPPHQWDU\2IWHQWKH

H[DJJHUDWLRQDQGIDQWDV\DVSHFWVRIPDJLFDOUHDOLVPDOORZVRFLDOFRPPHQWDU\WREH

H[SUHVVHGLQSODFHVDQGDWWLPHVZKHUHLWFRXOGRWKHUZLVHKDYHEHHQFHQVRUHG

$OWKRXJKGHQXQFLDWLRQRILOOHJDOWUDGHE\D)UHQFKLPPLJUDQWLVQRWOLNHO\WRKDYH

EHHQDVXEMHFWRIFHQVRUWKHWDFWLFLVHPSOR\HGZLWKPRUHVHQVLWLYHPDWHULDO

HOVHZKHUH3UHFLVHO\WKHIDFWWKDWWUDIILFNLQJVH[XDOSHUYHUVLRQDQGVWDWHVDQFWLRQHG

PXUGHUDUHSUHVHQWHGDQGFRQGHPQHGYLDWKHVDPHOLWHUDU\GHYLFHVPD\DOORZWKH

FULWLTXHRIVWDWHVDQFWLRQHGPXUGHUWRSDVVWKURXJKFHQVRUVKLS,QWKLVZD\7KH

+RXVHRIWKH6SULWVDGGUHVVHVLVVXHVRIFHQVRUVKLSLQLWVIRUPDVZHOODVLWVFRQWHQW

:KLOHRWKHUFKDUDFWHUVHLWKHUDFFHSWHYHQWVDVWKH\FRPHDQGWXUQWKHPHDFKWRWKHLU

RZQDGYDQWDJHOLNH&ODUDRUHOVHDOORZQRWKLQJWRVWDQGLQWKHZD\RIZKDWWKH\

ZDQWOLNH$OED%ODQFDVWDOOVVRPHZKHUHEHWZHHQWKHWZRSRVLWLRQV6KHQHLWKHU

EUHDNVRIIKHUUHODWLRQVKLSZLWK3HGUR7HUFHURQRUGRHVVKHUXQDZD\ZLWKKLP6KH

UHIXVHVWKHQDFFHSWVDQGWKHQOHDYHVKHUPDUULDJHZLWK-HDQGH6DWLJQ\7KLVPRGH

RIDFWLRQUHFHLYHVHTXDOUHJDUGDVWKHRWKHUWZR%ODQFDVDFWLRQVPD\EHGLIILFXOWWR

XQGHUVWDQGDQGPD\FDXVHKHUDQGRWKHUVPRPHQWDU\VXIIHULQJEXWXOWLPDWHO\WKH\

EULQJKDSS\UHVROYH7KLVLVLQPDQ\ZD\VWKHPHVVDJHRIWKHQRYHODFWLRQPXVWEH

WDNHQUHVROYHVPXVWEHPDGHSDLQDQGVXIIHULQJPXVWEHHQGXUHGDQGUHVLVWHGEXW

XOWLPDWHO\WKHZRUOGPRYHVIRUZDUGDQGHYHQLILQXQH[SHFWHGZD\VSUREOHPVDUH

UHVROYHG


27/46

&KDSWHU/LWWOH$OED

6XPPDU\

$VVRRQDV%ODQFDDUULYHVDWWKHELJKRXVHRQWKHFRUQHUKHUZDWHUEUHDNV-DLPHDV

ZHOODV&ODUDDQG$PDQGDDVVLVWDWWKHTXLFNELUWK0LJXHOZDWFKHVIURPWKHFORVHW

$OEDLVERUQOXFN\+HUVWDUVDUHMXVWULJKWDQGVKHHQWHUVWKHZRUOGIHHWILUVW6KH

KDVKHUIDWKHU3HGUR7HUFHUR*DUFLDVH\HV2IILFLDOO\$OEDEHDUV-HDQGH6DWLJQ\V

ODVWQDPHEXWVKHJRHVE\7UXHED%ODQFDWHOOVKHUWKDW-HDQGH6DWLJQ\LVKHUUHDO

IDWKHUDQGWKDWKHGLHGLQWKHGHVHUW/HVVWKDQWZRZHHNVODWHU$PDQGDOHDYHVWKH

KRXVH-DLPHGRHVQRWJRDIWHUKHURXWRIUHJDUGIRU1LFRODVEXWDIWHUWKDWWKHWZR

KDYHQRWKLQJWRGRZLWKHDFKRWKHU(YHU\RQHLQWKHIDPLO\PRVWQRWDEO\(VWHEDQORYHV$OEDGHDUO\7KH\UDLVHKHUXQGHUWKHLUHFOHFWLFWXWHODJH1LFRODVWHDFKHVKHU

DOWHUQDWLYHUHOLJLRQDQGPHGLFLQH&ODUDWHDFKHVKHUWRUHDGDQGFRPPXQHZLWKWKH

VSLULWV-DLPHDOORZVKHULQWRKLVSULYDWHOLEUDU\(YHU\RQHDOORZVKHUSOHQW\RIWLPH

DORQHWRSOD\LQWKHEDVHPHQW:KHQ$OEDLVIRXU1LFRODVJRHVRIIWR,QGLDIRUD

\HDUVHDUFKLQJIRUHQOLJKWHQPHQW+HUHWXUQVDYHJHWDULDQZULWHVDERRNDERXW*RG

DQGQLUYDQDDQGRSHQVDVSLULWXDOLQVWLWXWH$OEDLVWKHRQO\PHPEHURIWKHIDPLO\WR

ZKLFK(VWHEDQLVDEOHWRH[SUHVVKLVORYH7KH\VSHQGZHHNVDWDWLPHWRJHWKHUDW

7UHV0DULDV(YHQDWD\RXQJDJH$OEDTXHVWLRQVWKHMXVWLFHRIWKHZD\(VWHEDQ

WUHDWVWKHZRUNHUVDW7UHV0DULDV6KHLVWKHRQO\SHUVRQKHWROHUDWHVVXFKFULWLFLVP

IRUPDOWKRXJKLWGRHVQRWFDXVHKLPWRFKDQJHDQ\WKLQJ:KLOH(VWHEDQV

UHODWLRQVKLSZLWK$OEDWKULYHVKHFRPHVLQWRHYHUPRUHFRQIOLFWZLWKWKHUHVWRIWKH

IDPLO\

%ODQFDOLYHVLQKHUSDUHQWVKRXVHWDNLQJFDUHRIWKHERRNV5HIXVLQJWRDVNKHU


28/46

IDWKHUIRUDQ\WKLQJVKHVXSSRUWVKHUVHOIWHDFKLQJFHUDPLFVWRWKHZHDOWK\JLUOVRIWKH

FLW\DQGWRDJURXSRIPRQJRORLGVDQGE\VHOOLQJWKHFURFKHVVKHFRQWLQXHVWRPDNH

6KHHQWHUWDLQVDVWULQJRIVXLWRUV7KHRQO\RQHRIQRWHLVWKH.LQJRIWKH3UHVVXUH

&RRNHUVZKRP(VWHEDQKDWHVEHFDXVHKHDSSHDUVWREH-HZLVK$OEDLVDIUDLGKHU

PRWKHUZLOORQHGD\UXQRIIZLWKRQHRIKHUVXLWRUVXQWLOVKHPHHWV3HGUR7HUFHUR2QHDIWHUQRRQ%ODQFDWDNHV$OEDWRWKHSDUNDQGLQWURGXFHVKHUWR3HGUR7HUFHURDV

WKHPDQZKRVHUHYROXWLRQDU\VRQJVWKH\KHDURQWKHUDGLR$OEDGRHVQRWNQRZ

3HGUR7HUFHURLVKHUUHDOIDWKHUEXWVKHLQVWDQWO\XQGHUVWDQGVKRZPXFK%ODQFDDQG

KHORYHHDFKRWKHU6KHEHFRPHVDQDYLGIDQRI3HGUR7HUFHURVPXVLFWR(VWHEDQV

JUHDWGLVWDVWH3HGUR7HUFHURZDQWV%ODQFDWROHDYHKHUIDPLO\IRUKLPEXW%ODQFDLV

XQDEOHWRGRVR6KHWHOOV$OEDWKDWLWLVEHFDXVHVKHLVQRWUHDG\WRJLYHXSWKH

PDWHULDOFRPIRUWVVKHLVXVHGWREXWWKLVH[SODQDWLRQLVVXVSHFWDV$OEDODWHU

UHDOL]HVWKDWKHUPRWKHUHQMR\HGIHZPDWHULDOFRPIRUWVLQKHUSDUHQWVKRXVH

2QHGD\(VWHEDQ*DUFLDDUULYHVDWWKHKRXVHLQWKHFLW\DQGUHTXHVWVDQDXGLHQFH

ZLWK(VWHEDQ7UXHED:KLOHWKH\DUHZDLWLQJIRU(VWHEDQ7UXHEDWRFRPHKRPH

$OEDHQWHUVWKHURRP(VWHEDQ*DUFLDLVIDVFLQDWHGZLWKKHU2YHUFRPHZLWK

MHDORXVO\DQGGHVLUHKHVLPXOWDQHRXVO\DWWHPSWVWRVWUDQJOHDQGWRPROHVWKHU+HLV

DEUXSWO\GUDZQRXWRIKLVPDGWUDQFHZKHQZKLOHPDNLQJ$OEDWRXFKKLVHUHFWLRQ

KHDVNVKHULIVKHNQRZVZKDWLWLVDQGVKHPDWWHURIIDFWO\DQVZHUVDSHQLV$

PRPHQWODWHU(VWHEDQ7UXHEDHQWHUVWKHURRP:LWKRXWVD\LQJDQ\WKLQJ$OEDUXQV

RXW(VWHEDQ*DUFLDDVNV(VWHEDQ7UXHEDWRZULWHKLPDUHFRPPHQGDWLRQIRU

HQWUDQFHLQWRWKHSROLFHDFDGHP\ZLWKDIXOOVFKRODUVKLS(VWHEDQ7UXHEDGRHVQRW

UHDOL]HWKDW(VWHEDQ*DUFLDLVKLVJUDQGVRQEXWKHGRHVUHPHPEHUWKDWKHLVWKH

\RXQJER\ZKROHGKLPWR3HGUR7HUFHUR*DUFLD(VWHEDQ7UXHEDZULWHVWKH

UHFRPPHQGDWLRQ

-XVWEHIRUH$OEDVVHYHQWKELUWKGD\&ODUDUHDOL]HVWKDWVKHLVDERXWWRGLH6KH

PDNHVDOORIWKHQHFHVVDU\SUHSDUDWLRQV6ORZO\KHUIDPLO\UHDOL]HVZKDWLV

KDSSHQLQJ-DLPHZDQWWRFXUHKHUEXWVRRQKHUHDOL]HVWKDWKHUSULQFLSDODLOPHQWLV

WKDWVKHLVUHDG\WRGLH&ODUDKDVWLPHWRH[SODLQWR$OEDDQGWKHUHVWRIWKHIDPLO\

WKDWG\LQJLVVLPSO\DQRWKHUSDUWRIOLIHDQGWKDWLQKHUGHDWKVKHZLOOQRWUHDOO\OHDYH

WKHP$OEDGRHVQRWOHDYHKHUJUDQGPRWKHUVVLGHIRUGD\V&ODUDILQDOO\GLHVRQ

$OEDVELUWKGD\ZLWKKHUHQWLUHIDPLO\JDWKHUHGDURXQGKHU

$QDO\VLV

$IWHUIRXUFKDSWHUVFRYHULQJDUHODWLYHO\VPDOODPRXQWRIWLPHHDFKFKDSWHUQLQH

VSDQVVHYHQ\HDUV,WFDSWXUHVPXFKRIWKHV\PPHWU\RIWKHHQWLUHQRYHOEHJLQQLQJ

ZLWK$OEDVELUWKDQGHQGLQJZLWK&ODUDVGHDWKH[DFWO\VHYHQ\HDUVODWHU,QWKHLU


29/46

QDPHV&ODUD%ODQFDDQG$OEDUHSUHVHQWWKUHHGLIIHUHQWIDFHWVRIDVDPHHOHPHQW

OLJKWRUFODULW\7KLVEHFRPHVH[SOLFLWZKHQWKHQDUUDWRULQIRUPVXVWKDW%ODQFD

ZDQWHGWRQDPH$OEDDIWHU&ODUDEXWWKDW&ODUDGLGQRWEHOLHYHWKHJLUOVKRXOGEH

QDPHGDIWHUDOLYLQJSHUVRQDQGVXJJHVWHGDV\QRQ\PLQVWHDG$OWKRXJKHDFK

ZRPDQVQDPHLVDFRPPRQSURSHUQDPHLQ/DWLQ$PHULFDWKH\DOVRKDYHRWKHUREYLRXVPHDQLQJV&ODUDPHDQVFOHDU%ODQFDPHDQVZKLWHDQG$OEDPHDQVGDZQ

$OEDVQDPHDOVRUHLQIRUFHVWKHF\FOLFDOQDWXUHRIWKHVWRU\'DZQV\PEROL]HVD

EHJLQQLQJ:LWK$OEDDVWKHWKLUGLQWKHOLQHDQGWKHODVWZRPDQZKRVHVWRU\ZH

UHDGVKHUHSUHVHQWVERWKDQHQGDQGDEHJLQQLQJ

7KHSDUWLFXODUQXPEHUVDWSOD\LQWKLVFKDSWHUDUHVLJQLILFDQW&ODUDVSHDNVRIWKH

LPSRUWDQFHRIVWDUVDQGRWKHUVLJQVDW$OEDVELUWKSRLQWLQJWRZDUGWKLVOLQHRI

DQDO\VLV$OEDLVWKHWKLUGJHQHUDWLRQRIGDXJKWHUVLQWKHVWRU\+HUIDWKHULV3HGUR

7HUFHUR3HGURWKHWKLUG6KHLVDOPRVWERUQDWH[DFWO\WKUHHRFORFNLQWKH

DIWHUQRRQ$OEDLVERUQDWWKHEHJLQQLQJRIWKHQLQWKWKUHHWLPHVWKUHHFKDSWHURI

WKHERRN&ODUDGLHVRQ$OEDVVHYHQWKELUWKGD\7KHQXPEHUVWKUHHDQGVHYHQDUH

ERWKIXOORIPHDQLQJRXWVLGHRIWKHVWRU\DVZHOO%RWKDUHFRQVLGHUHGOXFN\

QXPEHUV7KHQXPEHUWKUHHRIWHQUHSUHVHQWVDF\FOHDQGLVUHODWHGWRZLWFKFUDIW

OLNHWKHWKUHH0RUDVLVWHUV

,Q$OEDDOORIWKHGLVSDUDWHFKDUDFWHUVLQWKHQRYHOFRPHWRJHWKHU6KHHPERGLHVWKH

LQWULFDWHIDPLO\WLHVWKDWNQLWWKHVWRU\WRJHWKHU$OEDLVHLWKHUELRORJLFDOO\RU

V\PEROLFDOO\6HYHUR1LYHDDQG3HGUR*DUFLDVJUHDWJUDQGGDXJKWHU&ODUD

(VWHEDQDQG3HGUR6HJXQGRVJUDQGGDXJKWHU%ODQFD3HGUR7HUFHURDQG-HDQGH

6DWLJQ\VGDXJKWHU-DLPH1LFRODVDQG$PDQGDVQLHFH(VWHEDQ*DUFLDVFRXVLQ

DQG0LJXHOVSDUWQHU$OEDOHDUQVIURPDQGVKDUHVDORYLQJUHODWLRQVKLSZLWKDOORI

KHUOLYLQJUHODWLYHVZLWKWKHSRVVLEOHH[FHSWLRQRI(VWHEDQ*DUFLD

$OEDVELUWKFDXVHVDQLPSHUFHSWLEOHVZHHWHQLQJRI(VWHEDQ7UXHEDVFKDUDFWHU

ZKLFK&ODUDQRWLFHV:KLOH&ODUDVFODLUYR\DQFHPD\DOORZKHUWRSHUFHLYHPDQ\

WKLQJRWKHUVGRQRWWKHGLUHFWRSSRVLWLRQRIWKHZRUGVLPSHUFHSWLEOHDQGSHUFHLYH

PRYHWKHVLWXDWLRQDVWHSIXUWKHU,QVHYHUDOLQVWDQFHVLQ7KH+RXVHRIWKH6SLULWVVLPLODUFRQWUDGLFWLRQVDUHVXVWDLQHG7KHVHSOD\LQWRWKHFRQFHSWRIPDJLFDOUHDOLVP

RQO\E\PDJLFFRXOG&ODUDSHUFHLYHWKHLPSHUFHSWLEOHDQG\HWKHUSHUFHSWLRQLVUHDO

DQGFRUUHFW$V&ODUDLVDEOHWRGRPDQ\PDJLFWKLQJVLWZLOOQHYHUEHFOHDUZKHWKHU

KHUQRWLFLQJWKHFKDQJHWKDW$OEDEULQJVDERXWLQ(VWHEDQLVWKHUHVXOWRIPDJLFDORU

RIUHDOSHUFHSWLRQ


30/46

(VWHEDQ*DUFLDVUHDFWLRQWR$OEDLVV\PEROLFERWKRIKHULQFUHGLEOHHIIHFWRQDOO

WKRVHZKRPHHWKHUDQGRIKLVYRLOHQWQDWXUH:KLOH$OEDGRHVLQVSLUHVRPHORYHLQ

(VWHEDQ*DUFLDLWWDNHVWKHIRUPRIOXVWVRWKDWKHUHSHDWHGO\PROHVWVKHU$WWKH

VDPHWLPHKLVRZQHQRUPRXVKDWUHGLVQRWFRPSOHWHO\UHPRYHGDQGKHDOVRWULHVWR

PXUGHUKHUHDFKWLPHWKH\PHHW,WLVRQO\$OEDVHQRUPRXVOXFNWKDWUHSHDWHGO\UHPRYHVKHUIURP(VWHEDQ*DUFLDVFOXWFKHVMXVWEHIRUHKHNLOOVKHU

&KDSWHU7KH(SRFKRI'HFOLQH

6XPPDU\


31/46

7KHQLJKW&ODUDGLHV(VWHEDQVOHHSVLQKHUEHGEHVLGHKHU1H[WWRKHUKHQRWLFHV

WKDWKHKDVVKUXQNIXUWKHU+HIHHOVWKDWWKH\DUHILQDOO\UHFRQFLOHG(VWHEDQDUUDQJHV

DQHODERUDWHIXQHUDOIRU&ODUD+HHUHFWVDPDXVROHXPWRKROG&ODUD5RVDWKH

%HDXWLIXODQGKLPVHOIVRWKDWWKH\FDQDOOEHXQLWHGLQGHDWK+HDQG-DLPHKDYHWR

VWHDO5RVDVERG\IURPWKHGHO9DOOHIDPLO\SORWLQRUGHUWRSXWLWLQWRWKHPDXVROHXP

$IWHU&ODUDVGHDWKWKHELJKRXVHRQWKHFRUQHUGHWHULRUDWHV7KHIORZHUVWKDWRQFH

ILOOHGLWZLOWDQGGLHWKHEXLOGLQJIDOOVLQWRGLVUHSDLUDQGWKHIDPLO\PHPEHUVGUDZ

DSDUW%ODQFDVWD\VLQWKHKRXVHDQGWULHVGHVSHUDWHO\WRPDLQWDLQLWEXWWKHUDQGRP

DPRXQWVRIPRQH\KHUIDWKHUJLYHVKHUIRUWKHXSNHHSDUHQHYHUHQRXJK6KHFDQ

RQO\EDUHO\NHHSWKHKRXVHIURPFRPSOHWHUXLQDQGVWLOOKDVWRERUURZPRQH\IURP

ZKRPHYHUVKHFDQ

1LFRODVEHJLQVFKDUJLQJKLVVSLULWXDOVWXGHQWVDQGPDNHVHQRXJKPRQH\WRUHQWD

KRXVHIRUWKHJURXSKHQDPHVWKH,QVWLWXWHIRU8QLRQZLWK1RWKLQJQHVV(VWHEDQ

WROHUDWHVKLVVRQVDFWLYLWLHVXQWLOKHILQGVWKDW$OEDKDVMRLQHGWKHPLQVKDYLQJKHU

KHDGDQGFKDQWLQJRP(VWHEDQUHOHDVHVKLVIXU\RQ1LFRODVZKRLQUHWXUQVKRZV

XSWKHQH[WGD\QDNHGDQGFKDQWLQJLQIURQWRIWKHJDWHVRIWKH&RQJUHVV7KHVKRFN

DQGDQJHUJLYH(VWHEDQDKHDUWDWWDFN+HUHFRYHUVWKUHHZHHNVODWHUDQGIRUFHV

1LFRODVWROHDYHWKHFRXQWU\ZLWKLQVWUXFWLRQVWRQHYHUUHWXUQ(VWHEDQVHQGV1LFRODV

HQRXJKPRQH\WRVXSSRUWKLPDQGWRNHHSKLPDZD\

2QFH$OEDVKDLUJURZVEDFN(VWHEDQHQUROOVKHULQD%ULWLVKVFKRROIRUJLUOV

FRQYLQFHGWKDWLWLVRIXWPRVWLPSRUWDQFHIRUKHUWROHDUQ(QJOLVK$OEDKDWHVWKH

VFKRROEXW(VWHEDQLQVLVWVWKDWVKHVWD\WKHUHIRUWHQ\HDUV7RZDUGRIIWKH

QLJKWPDUHVWKDWSODJXHKHUDIWHU&ODUDVGHDWK$OEDLVDOORZHGWRPRYHLQWR%ODQFDV

URRP7KHLUUHODWLRQVKLSGHHSHQVDV%ODQFDUHDGVWR$OEDIURP8QFOH0DUFRVV

ERRNVDQGWHOOVKHUZLOGIDPLO\VWRULHVHDFKQLJKWMXVWDV&ODUDKDGGRQHZLWKKHU

,QWKHVHQDWH(VWHEDQLVFRQYLQFHGWKDWWKHFRPPXQLVWVDUHJDLQLQJSRZHULQWKH

FRXQWU\DQGPXVWEHVWRSSHG1RRQHWDNHVKLPVHULRXVO\+HLVVRRIWHQPDGHIXQ

RIWKDWKHEHFRPHVTXLWHZHOONQRZQDQGDOZD\VZLQVKLVELGVIRUUHHOHFWLRQ$IWHU

3HGUR6HJXQGRVGHSDUWXUHDQG&ODUDVGHDWK7UHV0DULDVGRHVQRWSURGXFHZHOO

(VWHEDQUHIXVHVWRVHOO7UHV0DULDVEHFDXVHRILWVV\PEROLFYDOXHEXWSD\VLWOLWWOH

DWWHQWLRQ

3HGUR7HUFHURFRQWLQXHVWRPHHWZLWK%ODQFDUHJXODUO\DQGRIWHQZLWK$OEDDVZHOO

$OEDORYHVKLPEXWQHYHUUHDOL]HVKHLVKHUIDWKHU3HGUR7HUFHURFRQWLQXHVWRDVN


32/46

%ODQFDWRFRPHOLYHZLWKKLPEXWVKHUHIXVHVQRWZDQWLQJWRJLYHXSWKHURPDQWLF

LPDJHVKHKDVRIWKHLUUHODWLRQVKLSIRUWKHPXQGDQHH[SHULHQFHRIHYHU\GD\OLIH

WRJHWKHU-DLPHDQG3HGUR7HUFHURDOVRPDLQWDLQDGHHSIULHQGVKLS

(VWHEDQ7UXHEDEHFRPHVLQFUHDVLQJO\GHSUHVVHG2QHGD\WZRRIKLVIULHQGVWU\WR

FKHHUKLPXSE\WDNLQJKLPWRWKH&KULVWRSKHU&ROXPEXVWKHEHVWEURWKHOLQWKH

FRXQWU\'HVSLWHWKHIDFWWKDWLWLVEHDXWLIXOO\VHWXSDQGUXQ(VWHEDQKDVJUHDW

GLIILFXOW\FKRRVLQJDSURVWLWXWH)LQDOO\KHLVRIIHUHGWKHEHVWLQWKHKRXVHZKR

WXUQVRXWWREH7UDQVLWR6RWR7KHWZRROGIULHQGVDUHYHU\JODGWRVHHHDFKRWKHU

7UDQVLWRH[SODLQVWR(VWHEDQWKDWWKHEURWKHOLVGRLQJVRZHOOEHFDXVHVKHKDV

VXFFHHGHGLQVHWWLQJLWXSDVWKHFRRSHUDWLYHRISURVWLWXWHVDQGKRPRVH[XDOVWKDWVKH

DOZD\VZDQWHG7UDQVLWRDQG(VWHEDQPDNHORYH(VWHEDQIHHOVJUHDWO\UHOLHYHGDQG

LQWKHSURFHVVLVILQDOO\DEOHWRPRXUQ&ODUDVGHDWK

$QDO\VLV

$IWHUKHUGHDWK(VWHEDQFOHDQV&ODUDVERG\KLPVHOIDQGOLHVQH[WWRKHUDOOQLJKW

PXFKDV&ODUDGLGZLWK)HUXOD(VWHEDQDOVRKDVFRPHWRXQGHUVWDQGWKHF\FOLFDO

QDWXUHRIWKHZRUOGDVKHVHHV&ODUDVGHDWKQRWDVVHSDUDWLQJWKHPIXUWKHUEXWDV

EULQJLQJWKHPEDFNWRJHWKHU+LVGHVLUHWRHUHFWDPDXVROHXPZKHUHKH&ODUDDQG

5RVDFDQDOOEHXQLWHGLQGHDWKV\PEROL]HVKLVGHHSORYHIRUWKHWZRZRPHQEXWDOVR

HYLGHQFHVKLVXQUHOHQWLQJDWWDFKPHQWWRPDWHULDOWKLQJV(VWHEDQFDQQRWEHFRQWHQW

MXVWNQRZLQJWKDW&ODUDVVSLULWKDVUHMRLQHGKLPKHPXVWDVVXUHWKDWWKHLUHDUWKO\

UHPDLQVZLOOUHPDLQSK\VLFDOO\QHDURQHDQRWKHU

7KHRSLQLRQVDQGDQDO\VHVRIWKHSDVWRIIHUHGLQ(VWHEDQVILUVWSHUVRQQDUUDWLRQ

RIWHQRSHQO\GLIIHUZLWKYLHZVKHDWWULEXWHVWRKLVJUDQGGDXJKWHU7KHH[SOLFLW

H[SUHVVLRQRIFRQWHQWLRQRYHUWKHLQWHUSUHWDWLRQRIFHUWDLQHYHQWVOHDGVWKHUHDGHUWR

EHOLHYHPRUHHDVLO\WKRVHLQWHUSUHWDWLRQVWKDWDUHRIIHUHGDVXQFRQWHVWHG+RZHYHU

LQWKLVFKDSWHU(VWHEDQDVVHUWVWKDWKHNQRZVWKDWLQGHDWK&ODUDKDVIRUJLYHQKLP

:KLOHQRWKLQJSURYHVWKHFRQWUDU\&ODUDVUHIXVDOWRIRUJLYH(VWHEDQVXJJHVWVWKDW

WKHUHLVOLWWOHUHDVRQIRUKHUWRIRUJLYHKLPLQGHDWK(VWHEDQVFODLPWKHQLQVHUWVDQ

HOHPHQWRIGRXEWIRUWKHUHDGHUDVWRWKHDFFXUDF\RIKLVDQDO\VLVLQDQ\RIWKH

VHFWLRQVKHQDUUDWHV2IFRXUVHWKHXVHRIWKHILUVWSHUVRQLQWKRVHVHFWLRQVDOUHDG\

XQGHUOLQHVWKHVXEMHFWLYHQDWXUHRIWKRVHLQWHUSUHWDWLRQVEXWZHQRZZRQGHULI

VHQLOLW\ZLVKIXOWKLQNLQJRUGHOLEHUDWHUHZRUNLQJDOVRFRORUWKRVHVHFWLRQV

7KHHIIHFWVRI&ODUDVGHDWKHPSKDVL]HKRZLPSRUWDQWVKHKDVEHHQLQWKHVWRU\HYHQ

DWWKHPRPHQWVZKHQKHUSUHVHQFHZDVQRWDFWLYHO\IHOW7KHZLOWLQJRIWKHIORZHUV


33/46

DQGWKHGHDWKRIWKHSODQWVUHSUHVHQWKHUVXEWOHSUHVHQFHDVWKHOLIHIRUFHRIWKH

IDPLO\2QDSUDFWLFDOOHYHOWKHSODQWVGLHEHFDXVHLQ&ODUDVDEVHQFHQRRQH

UHPHPEHUVWRZDWHUWKHPUHJXODUO\+RZHYHUWKHYHU\GHVFULSWLRQRI&ODUDGXULQJ

KHUOLIHVXJJHVWVWKDWVKHKHUVHOISUREDEO\GLGQRWUHPHPEHUWRZDWHUWKHSODQWVRQD

UHJXODUEDVLV&ODUDGLGKRZHYHUWDONWRWKHSODQWVDQGIORZHUVDQGFDUHGIRUWKHLUZHOOEHLQJ7KHLUZLOWLQJWKHQUHIOHFWVWKHDEVHQFHRIWKHORYHIRUDOOOLYLQJWKLQJV

WKDW&ODUDFDUULHGZLWKKHU:KLOH$OEDDQG%ODQFDDUHYHU\ORYLQJZRPHQDWWKLV

SRLQWLQWKHLUOLYHVWKH\DUHFDXJKWXSLQWKHIORZRIHYHQWVLQWKHZRUOGDQGGRQRW

WDNHWKHWLPHWRORYHVPDOOGHWDLOVVXFKDVIORZHUV7KHGHWHULRUDWLRQRIWKHKRXVHDV

DZKROHDIWHU&ODUDVSDVVLQJGHPRQVWUDWHVKRZHYHUWKDWDWWHQWLRQWRVPDOOGHWDLOV

VXFKDVIORZHUVHLWKHUUHIOHFWRUDIIHFWWKHVWDWHRIWKHKRXVHDVDZKROH

7UDQVLWR6RWRDQG(VWHEDQDUHNLQGUHGVSLULWV7KH\GRQRWVKDUHDJUHDWORYH

DOWKRXJKWKH\GRHQMR\VDWLVI\LQJVH[XDOUHODWLRQVRQWKHIHZWLPHVWKDWWKH\PHHW

7UDQVLWRVQDPHUHIHUVWRKHUSURIHVVLRQ7UDQVLWRPHDQVWUDQVLWUHIHUULQJWRWKH

SHRSOHZKRFRQVWDQWO\FRPHDQGJRWKURXJKKHUEXVLQHVV6RWRLV,WDOLDQIRUEHORZ

RUXQGHUQHDWK7UDQVLWRVEXVLQHVVSURVWLWXWLRQGRHVLQIDFWEHORQJWRWKH

XQGHUZRUOGDOWKRXJKVKHFRQGXFWVWKHPRVWOHJLWLPDWHRIEURWKHOV:KLOHPDQ\RI

WKHRWKHUZRPHQLQWKHVWRU\KDYHDSRZHUHTXDOWREXWTXLWHGLIIHUHQWIURPWKDWRI

WKHPHQDURXQG7UDQVLWRVSRZHULVRIWKHVDPHFDWHJRU\DV(VWHEDQV6KHLVD

VKUHZGEXVLQHVVZRPDQZKRKHOSVRWKHUVRQO\DVPXFKDVWKH\KHOSKHURULQ

VLWXDWLRQVZKHUHKHUKRQRULVLQYROYHGDVLQWKHGHEWWKDWVKHRZHV(VWHEDQ0RUH

WUDGLWLRQDOO\PDVFXOLQHWKDWHYHQ(VWHEDQ7UDQVLWRKDVQRURPDQWLFLOOXVLRQVRU

GHVLUHV'HVSLWHWKHLUGHHSIULHQGVKLSDQGVH[XDOFRQWDFWVKHQHYHUWKLQNVRUHYHQ

ZLVKHVIRUDURPDQWLFUHODWLRQVKLSZLWK(VWHEDQ7UDQVLWRLVDSUDFWLFDOUHDOLVW

7KURXJKWKRVHTXDOLWLHVUDWKHUWKDQRXWRIDQ\VHQVHRIFKDULW\RUNLQGQHVVVKHLV

DEOHWRKHOSRWKHUV


34/46

&KDSWHU7KH$ZDNHQLQJ

6XPPDU\

'XULQJKHUHLJKWHHQWK\HDU$OEDHQUROOVLQWKHXQLYHUVLW\DQGIDOOVLQORYHZLWK

0LJXHO0LJXHOLVDOVRDVWXGHQWDQGDUHYROXWLRQDU\7KH\GRQRWNQRZWKDWWKHLUIDPLOLHVDUHDOUHDG\LQWHUWZLQHGDQGWKDW0LJXHOZDVSUHVHQWDW$OEDVELUWK2XWRI

ORYHIRU0LJXHO$OEDEHFRPHVLQYROYHGLQUHYROXWLRQDU\SROLWLFV6KHMRLQV0LJXHO

3URIHVVRU6HEDVWLDQ*RPH]DQGDJURXSRIVWXGHQWVLQDQRFFXSDWLRQRIWKH

XQLYHUVLW\-XVWZKHQ$OEDEHJLQVWRGRXEWKHULQWHUHVWLQWKHFDXVHVKHEHFRPHV

TXLWHLOODQGLVIRUFHGWROHDYHEHIRUHWKHHQGRIWKHSURWHVW7KHSROLFHPDQZKR

HVFRUWVKHURXWLV(VWHEDQ*DUFLD+HUHYHDOVWR0LJXHOWKDW$OEDLV6HQDWRU7UXHEDV

JUDQGGDXJKWHU(VWHEDQ*DUFLDDOVRUHPLQGV$OEDRIKHUIRXUWHHQWKELUWKGD\ZKHQKH

FDPHWRWKHKRXVHRQEXVLQHVVZLWKKHUIDWKHUDQGPROHVWHGKHUDVHFRQGWLPH

VLPXOWDQHRXVO\NLVVLQJDQGVWUDQJOLQJKHU

0LJXHOTXLFNO\GHFLGHVWKDWLWLVSRLQWOHVVWREHXSVHWDW$OEDIRUKHUJUDQGIDWKHUV

SROLWLFV7KH\EHFRPHFRQVXPHGE\WKHLUORYHIRURQHDQRWKHUDQGVSHQGDQHQWLUH

\HDUGHYRWHGWRPDNLQJORYHDVRIWHQDVSRVVLEOH$IWHUWKDWWKH\UHWXUQWRWKHLU

RWKHURFFXSDWLRQVDQGFRQWLQXHWKHLUUHODWLRQVKLS7KH\GRQRWPRYHLQWRJHWKHU


35/46

EHFDXVH0LJXHOUHDOL]HVWKDWKHZLOOVRPHGD\KDYHWRGHYRWHKLPVHOIWRWKH

UHYROXWLRQPXFKPRUHGHHSO\WKDQ$OEDZLOOEHUHDG\IRU


36/46

%HFDXVHKHULQWHUHVWLQWKHUHYROXWLRQRQO\VWHPVIURPKHUORYHIRU0LJXHO$OEDLV

QRWDEOHWRHQGXUHWKHVDPHVXIIHULQJDV0LJXHOIRUWKHVDNHRIWKHUHYROXWLRQ:H

ILQGLQVXEVHTXHQWFKDSWHUVKRZHYHUWKDWVKHLVDEOHWRHQGXUHDVPXFKLIQRWPRUH

VXIIHULQJLQRUGHUWRSURWHFW0LJXHO

-XVWDVORYHVUHWXUQDQGSHUVLVWWKURXJKDVWUDQJHFRPELQDWLRQRIFKDQFHDQGGHVLJQ

VRGRRWKHUFRQQHFWLRQV(VWHEDQ*DUFLDKDVIROORZHG(VWHEDQ7UXHEDSXUSRVHIXOO\

EXWKLVILUVWWKUHHHQFRXQWHUVZLWK$OEDVHHPWREHGLFWDWHGE\FKDQFH:KHQ$OED

OHDYHVWKHXQLYHUVLW\RFFXSDWLRQVKHKDVSDUWLFLSDWHGLQZLWK0LJXHOLWMXVWWR

KDSSHQVWKDW(VWHEDQ*DUFLDLVWKHRIILFHULQFKDUJHRIHVFRUWLQJKHURXWRIWKH

EXLOGLQJ)DWHLVQHLWKHUDEHQLJQQRUDPDOLJQIRUFHLWFURVVHVWKHSDWKVRIORYHUV

$OEDDQG0LJXHORIDOOLHV(VWHEDQ7UXHEDDQG7UDQVLWR6RWRDQGRIHQHPLHV

7KLVWKLUGPHHWLQJEHWZHHQ$OEDDQG(VWHEDQ*DUFLDLQVWLJDWHVDIODVKEDFNWRIRXU

RUILYH\HDUVHDUOLHU7KHVFHQH$OEDUHPHPEHUVIURPKHUIRXUWHHQWKELUWKGD\

SDUDOOHOVWKHRQHVKHGRHVQRWUHPHPEHUIURPKHUHDUOLHUFKLOGKRRGDVZHOODVWKH

RQHWKDWRFFXUVLQWKHSUHVHQWWLPHRIWKHFKDSWHU,QHDFKLQVWDQFHRIKHUPHHWLQJ

(VWHEDQ*DUFLDWKHVDPHVHTXHQFHRIDFWLRQVRFFXUV(VWHEDQ*DUFLDDSSURDFKHVKHU

VRPHZKDWVXUUHSWLWLRXVO\EHJLQVWRPROHVWKHUDQGDWWKHVDPHWLPHWRVWUDQJOHKHU

EHIRUHKHLVVXGGHQO\LQWHUUXSWHG7KHVSHFLILFVRIHDFKVFHQHYDU\EXWWKHVWUXFWXUH

LVWKHVDPH

&KDSWHU7KH&RQVSLUDF\

6XPPDU\

7RDOPRVWHYHU\RQHVVXUSULVHWKHVRFLDOLVWVZLQWKHHOHFWLRQ7KHPDMRULW\RIWKH

SHRSOHDUHRYHUMR\HG7KH&RQVHUYDWLYHVOHGE\(VWHEDQTXLFNO\RYHUFRPHWKHLU

VKRFNDQGPRXQWDPXOWLSURQJHGFDPSDLJQWRGLVFUHGLWDQGUXLQWKHQHZ

JRYHUQPHQW7KH\UHPRYHDOORIWKHLUPRQH\IURPWKHFRXQWU\DQGVWRSSURGXFWLRQ


37/46

DQGWUDQVSRUWDWLRQRIDOOEDVLFJRRGV7KHVRFLDOLVWVDQGWKHSHRSOHRIWKHFRXQWU\DUH

SHUWXUEHGEXWQRWGLVVXDGHG(VWHEDQSUHSDUHVIRUDPLOLWDU\FRXS:LWKWKHHOHFWLRQ

RIWKHVRFLDOLVWV3HGUR7HUFHURLVEURXJKWDOPRVWDJDLQVWKLVZLOOLQWRDQLPSRUWDQW

JRYHUQPHQWSRVLWLRQ

%ODQFDDQG3HGUR7HUFHURFRQWLQXHWRVHHHDFKRWKHU$OWKRXJKWKHLUDJHDQG

LQFUHDVHGUHVSRQVLELOLWLHVKDYHUHPRYHGPXFKRIWKHLUDUGRUWKH\VWLOOORYHHDFK

RWKHUYHU\PXFK3HGUR7HUFHURDJDLQGHPDQGVWKDW%ODQFDPDUU\KLPRUQHYHUVHH

KLPDJDLQ%ODQFDEUXVKHVKLPRIIQRWUHDOL]LQJWKDWKHLVVHULRXV6KHLVYHU\XSVHW

ZKHQVKHUHDOL]HVWKDW3HGUR7HUFHURSODQVWRIROORZWKURXJKZLWKKLVWKUHDWEXWVKH

WHOOVQRRQH

7KHHQWLUHFRXQWU\LVWKURZQLQWRGLVDUUD\E\WKHHFRQRPLFPHOWGRZQFDXVHGE\WKH

FRQVHUYDWLYHV%ODQFDOLNHHYHU\RQHHOVHLQWKHFRXQWU\ILQGVDOWHUQDWLYHZD\VWR

PDNHHQGVPHHWVWRULQJDQGFDUHIXOO\UDWLRQLQJZKDWVKHLVDEOHWREX\RQWKHEODFN

PDUNHW$OEDVXUUHSWLWLRXVO\VWHDOVIRUPKHUPRWKHUVIRRGVWRFNVDQGGLVWULEXWHVLWWR

WKHSRRU6KHDQG-DLPHZKRKDVPRYHGEDFNLQWRWKHKRXVHDOVRVWHDOZHDSRQV

IURP(VWHEDQVDUPVVWRFNSLOHZKLFKWKH\KLGHLQWKHPRXQWDLQV

-DLPHDQG$PDQGDPDLQWDLQDUHODWLRQVKLSZKLFK-DLPHQRORQJHUGHVLUHV-DLPH

GLVFRYHUVDGLVWXUELQJGHVLUHIRU$OEDRQZKLFKKHGRHVQRWDFW$PDQGDDQG$OED

KHOS-DLPHRXWDWWKHFOLQLFZKLFKLVGHVSHUDWHO\XQGHUVWDIIHG

7KHXSKHDYDOLQWKHFRXQWU\DQG(VWHEDQVSURORQJHGDEVHQFHVHWWKHVWDJHIRUWKH

SHDVDQWVDW7UHV0DULDVWRWDNHRYHUWKHHVWDWH:KHQ(VWHEDQILQGVRXWKHWDNHVD

JXQDQGJRHVWR7UHV0DULDVKLPVHOI7KHSHDVDQWVWDNH(VWHEDQKRVWDJHDQGHYHQ

WKHQDWLRQDOJXDUGLVXQDEOHWRIUHHKLP%ODQFDWDNHVLWXSRQKHUVHOIWREULQJ$OED

ZLWKKHUWR3HGUR7HUFHURVRIILFHDQGGHPDQGWKDWKHIUHH(VWHEDQLQWKHSURFHVV

LQIRUPLQJ$OEDWKDW3HGUR7HUFHURLVKHUIDWKHU3HGUR7HUFHURDJUHHV%ODQFD$OED

DQG3HGUR7HUFHURWUDYHOWR7UHV0DULDVWRJHWKHU%HFDXVHWKHSHDVDQWVUHFRJQL]H

KLPDVERWKDUHYROXWLRQDU\DQGDQDWLYHRI7UHV0DULDVWKHSHDVDQWVDOORZ3HGUR

7HUFHURWRIUHH(VWHEDQ7UXHED$OWKRXJKKHLQVXOWV3HGUR7HUFHUR(VWHEDQDFFHSWV

KLVKHOSKXPEOHG

%DFNLQWKHFLW\(VWHEDQLVYLVLWHGE\/XLVD0RUDWKHODVWRIWKHWKUHH0RUDVLVWHUV

/XLVDLQIRUPV(VWHEDQWKDWWKHUHZLOOVRRQEHWHUULEOHEORRGVKHGWKDW(VWHEDQZLOO

EHRQWKHVLGHRIWKHYLFWRUVEXWWKDWKHZLOOZLQQRWKLQJDQGWKDW$OEDZLOOEHLQ

GDQJHUDQGVKRXOGOHDYHWKHFRXQWU\(VWHEDQ7UXHEDLVJODGWRVHH/XLVDEHFDXVH

VKHUHPLQGVKLPRI&ODUDEXWKHGRHVQRWKHHGKHUDGYLFH


38/46

$QDO\VLV

7KHVXUSULVHRIERWKWKH&RQVHUYDWLYHDQG6RFLDOLVWSDUWLHVDWWKHRXWFRPHRIWKH

HOHFWLRQVVKRZVWKDWWKHUHVXOWVUHIOHFWWKHZLOORIWKHSHRSOHOHJLWLPDWLQJWKH

VRFLDOLVWJRYHUQPHQW7KH&RQVHUYDWLYHSDUW\ZRQHOHFWLRQVWKURXJKEULEHU\DQGLQWLPLGDWLRQDQGWKHUHIRUHZDVDOZD\VDVVXUHGRILWVYLFWRU\EHIRUHLWZDVRIILFLDOO\

DQQRXQFHG7KHIDFWWKDWWKH\DUHDJDLQVXUHRIZLQLQJWKLVHOHFWLRQVKRZVWKDWWKHLU

WDFWLFVKDYHQRWFKDQJHG+RZHYHUVLQFHDFULWLFDOPDVVRIWKHSRSXODWLRQUHIXVHGWR

EHEULEHGRULQWLPLGDWHGWKLVWLPHWKHUHVXOWVDUHGLIIHUHQW7KHH[WUHPHO\XQ

GHPRFUDWLFQDWXUHRIWKH&RQVHUYDWLYHSDUW\LVUHYHDOHGIXUWKHUZKHQLQVWHDGRI

DFFHSWLQJWKHXQIDYRUDEOHHOHFWLRQUHVXOWVWKH\DWWHPSWWRVDERWDJHWKHVRFLDOLVW

JRYHUQPHQW7KH&RQVHUYDWLYHVGRQRWUHO\RQWKHLUPRQH\DQGLQIOXHQFHDORQH

7KH\TXLFNO\FDOORQIRUHLJQDLG7KLVIRUHLJQDLGLVJLYHQZLWKFRQGLWLRQVDWWDFKHG

7KHVXEWOHVXJJHVWLRQVRIWKHLQIOXHQFHRIIRUHLJQSRZHUVWKDWKDVEHHQVHHQLQWKH

%ULWLVKVFKRROV-DLPH1LFRODV%ODQFDDQG$OEDDWWHQGEHFRPHVTXLWHHYLGHQW7KH

&RQVHUYDWLYHVDFFHSWIRUHLJQSUHVHQFHLQDQGSDUWLDOFRQWURORIWKHLUFRXQWU\DVD

PHDQVWRUHPDLQLQSRZHU1RVSHFLILFIRUHLJQFRXQWULHVDUHQDPHGEXWLWLV

LQWLPDWHGWKDWWKHVHFRXQWULHVDUHWKH8QLWHG6WDWHVDQGSRVVLEO\VRPH(XURSHDQ

QDWLRQV:KLOHWKHFRQVHUYDWLYHVDFFXVHWKHVRFLDOLVWVRIDOVRDFFHSWLQJIRUHLJQ

LQIOXHQFHIURPWKH5XVVLDQVWKHUHLVOLWWOHHYLGHQFHWKDWVXFKLQIOXHQFHDFWXDOO\

RFFXUV7KH6RFLDOLVWVUDWKHUUHFHLYHDOORIWKHLUVXSSRUWIRUPWKHSHRSOHZKRDUH

ZLOOLQJWRHQGXUHJUHDWVXIIHULQJLQUHWXUQIRUWKHHTXDOLW\DQGIUHHGRPWKDWWKH

VRFLDOLVWVRIIHUWKHP7KHOHDGHUVRIWKHVRFLDOLVWSDUW\DUHDOVRGHVFULEHGDVUHOXFWDQW

OHDGHUV3HGUR7HUFHURZRXOGUDWKHUIDUPDQGSOD\UHYROXWLRQDU\PXVLFWKDQKROGD

JRYHUQPHQWDOSRVW7KLVVWDQGVLQRSSRVLWLRQWRWKHFDUHHUSROLWLFLDQVRIWKH

&RQVHUYDWLYHSDUW\VXFKDV(VWHEDQ

1RWHYHU\ORYHDIIDLULQWKHVWRU\RYHUFRPHVDGYHUVLW\-DLPHDQG$PDQGDVDIIDLU

GRHVQRWHQGKDSSLO\DOWKRXJK-DLPHDQG$PDQGDVKDUHDQXQVSRNHQORYHZKLFKLV

NLQGOHGGXULQJ$PDQGDVUHODWLRQVKLSZLWK1LFRODVDQGKHUVXEVHTXHQWDERUWLRQ

7KLVORYHLVGHVFULEHGDVHTXDOO\UHDODQGGHHSDVWKDWVKDUHGE\%ODQFDDQG3HGUR

7HUFHURRU$OEDDQG0LJXHO:KHQWKH\PHHW\HDUVODWHUWKH\ERWKUHPHPEHUWKHLULQLWLDODWWUDFWLRQDQGIRUPDUHODWLRQVKLSEDVHGRQLWEXWXQOLNHWKHRWKHUVRYHUWKH

\HDUV-DLPHKDVORVWKLVSDVVLRQIRU$PDQGD7KHUHLVQRSDUWLFXODUUHDVRQIRUWKLV

GLIIHUHQFH,WVHUYHVWRGHVWUR\DQ\QRWLRQWKDWORYHFDQDQGZLOODOZD\VVXUPRXQWDOO

REVWDFOHVZKLFKFRXOGRWKHUZLVHEHDVVXPHGWREHRQHRIWKHPHVVDJHVRI7KH

+RXVHRIWKH6SLULWV


39/46

7LPHDQGQHFHVVLW\GREHJLQWRKHDO(VWHEDQVUHODWLRQVKLSVZLWK%ODQFDDQG3HGUR

7HUFHUR$OWKRXJKQRNLQGZRUGVDUHH[FKDQJHGDQGQRIRUJLYHQHVVLVH[SUHVVHG

(VWHEDQDFFHSWV%ODQFDDQG3HGUR7HUFHURVKHOSLQVDYLQJKLVOLIH,QKLV

LQWHUPHGLDU\SRVLWLRQDVDSHDVDQWOHDGHUEXWDOVRDV%ODQFDVORYHU3HGUR7HUFHURLV

DEOHWRQHJRWLDWHIRU(VWHEDQVUHOHDVH7KLVLVRQHRIWKHILUVWPRPHQWVZKHQWKHSHUVRQDORYHUFRPHVDQGEHJLQVWRKHDOSROLWLFDOGLYLVLRQV


40/46

&KDSWHU

6XPPDU\

7KHPRXQWLQJSROLWLFDOWHQVLRQFXOPLQDWHVLQDPLOLWDU\FRXS$ZDUHRIZKDWLV

DERXWWRKDSSHQ7KHSUHVLGHQWFDOOVKLVFORVHVWIULHQGVDURXQGKLPLQFOXGLQJ-DLPH

7KHPLOLWDU\IRUFHVDWWDFN7KH\NLOOWKHSUHVLGHQWDQGDUUHVW-DLPH%HFDXVHRIKLVIDPLO\SRVLWLRQDQGKLVSURIHVVLRQ-DLPHLVRIIHUHGWKHSRVVLELOLW\RIUHQRXQFLQJKLV

SROLWLFDOYLHZVLQUHWXUQIRUKLVIUHHGRPEXW-DLPHUHIXVHV+HLVNLOOHG(VWHEDQ

XQDZDUHRI-DLPHVIDWHFHOHEUDWHVWKHFRXS'HVSLWHDIHZFRQFHUQVKHKDVDWQRW

EHLQJLPPHGLDWHO\UHLQVWDWHGLQWKH6HQDWH(VWHEDQWULHVWREHOLHYHWKDWWKHUHZLOOEH

RQO\DEULHISHULRGRIGLFWDWRUVKLSDIWHUZKLFKSRZHUZLOOEHUHWXUQHGWRKLV

FRQVHUYDWLYHFURQLHV0LJXHOWDNHVOHDYHRI$OEDDQGMRLQVWKHJXHUULOODV

2QWKHGD\RIWKHFRXS3HGUR7HUFHURFRPHVWRWKHKRXVHLQVHFUHWDQGDVNVIRU

%ODQFDVKHOS6KHKLGHVKLPLQRQHRIWKHEDFNURRPVRIWKHKRXVHWHOOLQJQRRQH

)RUVHYHUDOPRQWKVVKHNHHSVKLPKLGGHQWKHUH7KH\UHQHZWKHLUORYHZLWKJUHDW

LQWHQVLW\EXW3HGUR7HUFHUREHJLQVWRJRVWLUFUD]\

7KHVWRUHVDUHIORRGHGZLWKDOORIWKHPHUFKDQGLVHWKDWZDVPLVVLQJGXULQJWKH

6RFLDOLVWUXOHEXWSULFHVKDYHULVHQHQRUPRXVO\7KHSRRUDQGHYHQWKHPLGGOH


41/46

FODVVHVDUHRIIHUHGQRUHOLHI:DOOVDUHEXLOWDURXQGWKHSRRUDUHDVRIWKHFLW\DQG

WKHZHDOWK\DUHDVDUHNHSWEULJKWDQGEHDXWLIXOVRWKDWWKHULFKUHVLGHQWVDQGWRXULVWV

GRQWKDYHWRNQRZDERXWWKHUHVWRIWKHSRSXODWLRQ7KHPLOLWDU\UHJLPHRQO\

EHFRPHVPRUHRSHQO\IDVFLVW7KH\VKXWGRZQVFKRROVDQGFHQVRUDOOIRUPVRI

H[SUHVVLRQ'HWUDFWRUVIURPWKHUHJLPHDUHNLOOHGRUGLVDSSHDUHG$OEDGRHVZKDWVKHFDQFODQGHVWLQHO\WRKHOSIHHGWKHSRRUDQGWRVQHDNSROLWLFDOGLVVLGHQWVLQWR

IRUHLJQHPEDVVLHVVRWKDWWKH\FDQHVFDSHWKHFRXQWU\$PDQGDSXWV$OEDLQFRQWDFW

ZLWKSULHVWVZKRFRQGXFWVLPLODUZRUN

(VWHEDQJRHVWRUHFODLP7UHV0DULDV+HGLVPLVVHVDOORIWKHSHDVDQWVDQGEXUQV

WKHLUEXLOGLQJVWRWKHJURXQG$WDSRLQWWRRODWHWRHIIHFWDQ\GLIIHUHQFHKHUHDOL]HV

WKDWKHKDVKXUWKLPVHOIWKHPRVW+HLQYLWHVWKHSHDVDQWVEDFNEXWWKH\UHIXVH

(VWHEDQUHWXUQVWRWKHFLW\

7KH3RHWGLHV7KHUHLVDPRPHQWDU\SRSXODUVXUJHRIPRXUQLQJDWKLVGHDWKEXWWKH

PLOLWDU\UHJLPHVRRQTXHOOVLW

%ODQFDWHOOV(VWHEDQDQG$OEDWKDWVKHKDVEHHQKLGLQJ3HGUR7HUFHURLQWKHKRXVH

VLQFHWKHFRXSDQGDVNVIRUWKHLUKHOS(VWHEDQFDOOVRQDQROGIULHQGRIKLVZKR

ZRUNVIRURQHRIWKHHPEDVVLHV(VWHEDQKLPVHOIOHDGV3HGUR7HUFHURRXWRIKLV

KLGLQJDQGWKHWZRPHQUHFRQFLOH%ODQFDILQDOO\GHFLGHVWROLYHZLWK3HGUR7HUFHUR

7KHWZRRIWKHPHQWHUWKHHPEDVV\RIWKH9DWLFDQWRJHWKHUDQGIOHHWR&DQDGD

0LJXHOLVDEOHWRRFFDVLRQDOO\YLVLW$OED$OEDVKRZV0LJXHOZKHUHVKHDQG-DLPH

VWDVKHGWKHZHDSRQVWKH\SLOIHUHGIURP(VWHEDQ0LJXHOXQHDUWKVWKHZHDSRQVIRU

WKHJXHUULOODV$OEDDOVRVHOOVZKDWHYHUVKHFDQRIWKHIDPLO\SRVVHVVLRQVLQRUGHUWR

KHOS0LJXHO:KHQVKHVHOOVWKHSRUWUDLWRI&ODUD(VWHEDQWHOOVKHUVKHPXVWVWRS

EXWKHVHWVKHUXSZLWKDEDQNDFFRXQWZKLFKKHNHHSVIXOODQGZKLFKVKHFDQVSHQG

DVVKHSOHDVHV8QGHUWKHQHZUHJLPH(VWHEDQVEXVLQHVVHQWHUSULVHVDUHGRLQJ

H[WUHPHO\ZHOODQGKHKDVPRQH\WRVSDUH

8QEHNQRZQVWWR(VWHEDQWKHSROLWLFDOSROLFHKDYH$OEDXQGHUVXUYHLOODQFH2QH

QLJKWWKH\EUHDNLQUDQVDFNWKHKRXVHDQGWDNH$OEDDZD\(VWHEDQSURWHVWVEXWLV

XQDEOHWRVWRSWKHP7KHSROLWLFDOSROLFHGHOLYHU$OEDWRWKHFRORQHOZKRQRZKHDGV

WKHPLOLWDU\GLFWDWRUVKLS(VWHEDQ*DUFLD

$QDO\VLV

3ROLWLFDOFRPPHQWDU\DQGDQDO\VLVWDNHVSUHFHGHQFHRYHUSORWGHYHORSPHQWDOWKRXJK

WKHSORWFRQWLQXHVWRXQUDYHO0LOLWDU\GLFWDWRUVKLSLVGHVFULEHGLQDOORILWVVKRFNLQJ


42/46

GHWDLO,WLVVKRZQWRHIIHFWQRWRQO\WKHSRRUDQGPLGGOHFODVVHVEXWDOVRWKHIRUPHU

FRQVHUYDWLYHXSSHUFODVVHV$OWKRXJKFRQVHUYDWLYHSUDFWLFHVZHUHFULWLFL]HGLQHDUOLHU

FKDSWHUVWKH\DUHKHUHGLVWLQJXLVKHGIRUPWKHUXWKOHVVDQGRYHUWO\EUXWDOSUDFWLFHVRI

DPLOLWDU\GLFWDWRUVKLS(VWHEDQVLQLWLDOEHOLHILQWKHHIIHFWLYHQHVVRIDPLOLWDU\FRXS

DQGKLVSUHOLPLQDU\VXSSRUWIRULWKRZHYHUEOXUWKHGLYLGLQJOLQHEHWZHHQDFRQVHUYDWLYHUHJLPHDQGDPLOLWDU\GLFWDWRUVKLS

&RQYHUVHWRLWVGHDGO\HIIHFWVRQPRVWRIWKHSRSXODWLRQWKHPLOLWDU\GLFWDWRUVKLS

FUHDWHVHQRUPRXVILQDQFLDOEHQHILWVIRUWKHXSSHUFODVVHV7KHSUHVHQWDWLRQRIWKLV

G\QDPLFLQGLFWVFDSLWDOLVPDVDWRRORIGLFWDWRUVKLS&DSLWDOLVPFDQEHUHFXSHUDWHGRU

UHGHHPHGLILWFDQEHGLYHUWHGLQWRVRFLDOLVWSUDFWLFHV(VWHEDQVXFFHHGVLQWKLV

GLYHUVLRQDVKHSRXUVKLVHDUQLQJVLQWRWKHDFFRXQWKHVHWVXSIRU$OEDZKRLQWXUQ

GLVWULEXWHVWKHPRQH\WRWKRVHLQQHHG

$OWKRXJKQRSDUWLFXODUFRXQWU\KDVEHHQFOHDUO\QDPHGDVWKHVHWWLQJIRUWKHQRYHO

WKHGHVFULSWLRQRIWKHPLOLWDU\UHJLPHUHVHPEOHVSHUIHFWO\WKRVHRIWKH6RXWK

$PHULFDV6RXWKHUQ&RQH&KLOH$UJHQWLQD8UXJXD\3DUDJXD\DQG3HUX

6LPLODUO\QRH[DFWGDWHKDVEHHQJLYHQIRUWKHVHWWLQJRIWKHQRYHOEXWDJDLQEDVHG

RQUHIHUHQFHVWRWKHDSSHDUDQFHRIDXWRPRELOHVDQGRWKHUWHFKQRORJLFDOLQYHQWLRQV

DVZHOODVWKHFKDUDFWHUVSUHFLVHDJHVLWFDQEHDVVXPHGWKDWWKLVFKDSWHUWDNHVSODFH

LQWKHVSUHFLVHO\WKHWLPHZKHQWKH6RXWKHUQ&RQHZDVUDFNHGE\PLOLWDU\

GLFWDWRUVKLSV7KHFKDSWHUVWLWOH7KH7HUURUUHFDOOVQDPHVJLYHQWRYDULRXVSHULRGV

LQ6RXWKHUQ&RQHGLFWDWRUVKLSVVXFKDV7KH3URFHVVDQG7KH'LUW\:DULQ

$UJHQWLQD

,QROGDJHDQGLQWKHIDFHRIJUHDWVXIIHULQJ(VWHEDQFRPSOHWHVKLVWUDQVIRUPDWLRQ

IURPDSDWULDUFKDOW\UDQWWRDORYDEOHROGPDQ+HUHDOL]HVWKHPLVWDNHVKHKDVPDGH

ERWKSROLWLFDOO\DQGSHUVRQDOO\DQGLVDEOHWRUHGHHPKLPVHOIWRDFHUWDLQH[WHQWE\

KHOSLQJKLVIRUPHUHQHPLHV-XVWDV3HGUR7HUFHURH[WUDFWHG(VWHEDQIURPWKHKDQG

RIWKHSHDVDQWV\HDUVEHIRUH(VWHEDQIHUUHWV3HGUR7HUFHURDQG%ODQFDRXWRIWKH

FRXQWU\$UHSHWLWLRQZLWKWKHUROHVUHYHUVHGRIWKHH[DFWFRQYHUVDWLRQWKHWZRPHQ

KDGGXULQJWKHILUVWLQWHUYHQWLRQXQGHUOLQHVWKHSDUDOOHOEHWZHHQWKHWZRPHQV

DFWLRQV6WLOOPXFKRI(VWHEDQVUHDOL]DWLRQFRPHVWRRODWH+HKDVORVWVRPXFKRIKLVSROLWLFDODQGSK\VLFDOSRZHUWKDWDOWKRXJKKHZRXOGOLNHWRKHLVLQFDSDEOHRI

SUHGLFWLQJLQIOXHQFLQJRUILJKWLQJRIIWKHVROGLHUVZKREXUVWLQWRKLVKRXVHDQGWDNH

$OEDDZD\


43/46


44/46

&KDSWHU7KH+RXURI7UXWK

6XPPDU\

$OEDLVKHOGDORQJZLWKDJUHDWQXPEHURIRWKHUSULVRQHUV6KHLVSK\VLFDOO\

VH[XDOO\DQGHPRWLRQDOO\WRUWXUHGE\JXDUGVDVZHOODVE\(VWHEDQ*DUFLD$OEDLVDOZD\VEOLQGIROGHGZKHQVKHPHHWV(VWHEDQ*DUFLDEXWDIWHUDIHZGD\V(VWHEDQ

*DUFLDUHDOL]HVWKDWVKHKDVUHFRJQL]HGKLP(VWHEDQ*DUFLDDQGWKHJXDUGVGHPDQG

WKDW$OEDWHOOWKHPZKHUH0LJXHOLV6KHVWHDGIDVWO\UHIXVHV7KHWRUWXUHVLQFUHDVHWR

HOHFWULFVKRFNV$QD'LD]ZKRKDGEHHQDWWKHILUVWRFFXSDWLRQRIWKHXQLYHUVLW\

ZLWK$OED\HDUVEHIRUHLVDOVRLQWKHZRPHQVVHFWLRQRIWKHSULVRQ$QDFDUHVIRU

$OEDZKHQVKHLVDWKHUZRUVWDQGWKHWZRZRPHQHVWDEOLVKDIULHQGVKLS(VWHEDQ

*DUFLDSD\VVSHFLDODWWHQWLRQWR$OEDDQGVKHUHDOL]HVWKDWKHLVWRUWXULQJKHUQRW

RQO\WRILQGRXWZKHUH0LJXHOLVEXWDOVRWRDYHQJHKLPVHOIIRULQMXULHVWKDWKDG

EHHQLQIOLFWHGRQKLPIURPELUWK(VWHEDQ*DUFLDVVWUDQJHGHVLUHIRU$OEDWDNHVKLPRYHUGXULQJRQHRIWKHWRUWXUHVHVVLRQVDQGVRKHVHQGVKHURIIWRVROLWDU\

FRQILQHPHQW$OEDWULHVWRNLOOKHUVHOIEXW&ODUDDSSHDUVWRKHUDQGH[SODLQVWRKHU

WKDWVKHPXVWWU\WRVXUYLYH&ODUDVXJJHVWVWKDW$OEDZULWHKHUWHVWLPRQ\LQKHU

PLQGLQRUGHUWRNHHSKHUVHOIVDQHDQGWRWHVWLI\WRKHUH[SHULHQFHV$OEDIROORZV

&ODUDVDGYLFHDQGEHFRPHVVRLQYROYHGLQKHUPHQWDOZULWLQJWKDWVKHVWRSVHDWLQJ

DQGGULQNLQJ:KHQWKHJXDUGVUHDOL]HWKDWVKHLVRQWKHEULQNRIGHDWKWKH\UHPRYH

KHUIURPVROLWDU\FRQILQHPHQWDQGUHWXUQKHUWR(VWHEDQ*DUFLDZKRPVKHQRORQJHU

UHFRJQL]HV

0HDQZKLOH(VWHEDQ7UXHEDXVHVHYHU\FRQQHFWLRQKHKDVWRWU\WRORFDWH$OED$IWHU

DPRQWKRIIUXLWOHVVVHDUFKLQJKHJRHVWRWKH+RWHO&KULVWRSKHU&ROXPEXVLQVHDUFK

RI7UDQVLWR6RWR7UDQVLWRLVVWLOOWKHUHDOWKRXJKWKH&KULVWRSKHU&ROXPEXVKDV

FKDQJHGZLWKWKHWLPHV:LWKWKHDGYHQWRIVH[XDOOLEHUDWLRQDQGELUWKFRQWURO

GHPDQGIRUSURVWLWXWHVGLPLQLVKHGDQG7UDQVLWRWUDQVIRUPHGKHUFRRSHUDWLYHLQWRD

KRWHOWKDWUHQWVRXWURRPVIRUORYHUVWRXVH7KHEXVLQHVVKDVSURVSHUHGXQGHUWKH

PLOLWDU\UHJLPHDVXQGHUDOORIWKHRWKHUVEHFDXVHDJRRGQXPEHURIKHUFOLHQWVDUH

KLJKUDQNLQJRIILFLDOVLQWKHUHJLPH7UDQVLWRUHDOL]HVWKDW(VWHEDQKDVFRPHWRDVNKHUWRUHSD\WKHGHEWVKHRZHVKLPIURPRYHUILIW\\HDUVEHIRUHZKHQKHJDYHKHU

WKHPRQH\VKHQHHGHGWROHDYH7UHV0DULDVDQGPRYHWRWKHFLW\(VWHEDQDVNV

7UDQVLWRWRKHOSKLPORFDWH$OEDZKRLVWKHRQO\SHUVRQOHIWLQKLVIDPLO\ZKRKH

ORYHV7UDQVLWRDJUHHVDQGWZRGD\VODWHUVKHFDOOV(VWHEDQWRWHOOKLPVKHKDVIRXQG

$OED


45/46

$QDO\VLV

,QNHHSLQJZLWKWKHDWWHQWLRQWRWKHSDUWLFXODUVRIZRPHQVH[SHULHQFHVIRXQG

WKURXJKRXWWKHQRYHOVSHFLDOFRQVLGHUDWLRQLVJLYHQWR$OEDVH[SHULHQFHQRWRQO\DV

DQLQGLYLGXDOEXWDOVRDVDZRPDQ$OEDVXIIHUVWRUWXUHVSDUWLFXODUWRKHUJHQGHU

PRVWQRWDEO\UDSHZKLFKPD\YHU\ZHOOOHDYHKHUSUHJQDQW6KHLVDOVRVXSSRUWHGE\DFRPPXQLW\RIZRPHQSULVRQHUV7KHZRPHQHPSOR\WHFKQLTXHVWKDWDUH

WUDGLWLRQDOO\YLHZHGDVIHPLQLQHWRZLWKVWDQGWKHWRUWXUHVXFKDVVLQJLQJWRJHWKHU

:KHQVKHLVWUDQVIHUUHGWRDFRQFHQWUDWLRQFDPS$OEDDJDLQILQGVDFRPPXQLW\RI

ZRPHQZKRERQGWRJHWKHUWRKHOSUDLVHHDFKRWKHUVFKLOGUHQDQGWRPHQGHDFK

RWKHUVEURNHQERGLHVDQGVSLULWV

,QSULVRQ&ODUDWHDFKHV$OEDWRZULWH2IFRXUVH$OEDZDVDOUHDG\TXLWHDEOHWR

ZULWHEXW&ODUDWHDFKHVKHUWRXVHZULWLQJ&ODUDWRRNXSZULWLQJLQMRXUQDOVZKHQ

VKHVWRSSHGVSHDNLQJLQRUGHUWRNHHSWUDFNRIDQGWRUHFRUGWKHHYHQWVRIKHUOLIH

&ODUDVZULWLQJVHUYHGDSHUVRQDOLQWHUHVW$VVKHWHDFKHVLWWR$OEDKRZHYHU&ODUD

GHPRQVWUDWHVWKDWWKLVSHUVRQDOSUDFWLFHFDQDOVRIXOILOODSROLWLFDOHQG$OEDZLOO

ZULWHWRUHVLVWWRUWXUHDQGVDYHKHURZQOLIHDQGDOVRWRFUHDWHDWHVWLPRQ\WRKHU

H[SHULHQFH7HVWLPRQ\EHDUVZLWQHVVWRHYHQWVIRUWKHSXUSRVHRIEURDGFDVWLQJWKHP

WRDZLGHUDXGLHQFHWKDWPD\EHDEOHWROHDUQIURPRUHYHQUHPHG\WKHHYHQWV

:KLOH&ODUDZURWHLQQRWHERRNV$OEDFDQRQO\ZULWHLQKHUKHDGDVVKHLVLQ

VROLWDU\FRQILQHPHQW+HUZULWLQJLVWKHUHIRUHPHWDSKRULFDOUDWKHUWKDQOLWHUDO

+RZHYHUDV$OEDLVDOVRUHYHDOHGWREHWKHQDUUDWRURI7KH+RXVHRIWKH6SLULWVVKH

LVVKRZQHPSOR\LQJOLWHUDOZULWLQJWRGHVFULEHKHUPHWDSKRULFDOZULWLQJ$OEDVZULWLQJRIKHUWHVWLPRQ\LVDOVRDPHWDSKRUIRU,VDEHO$OOHQGHVZULWLQJRI7KH

+RXVHRIWKH6SLULWVDVDWHVWLPRQ\WRHYHQWVWKDWWRRNSODFHLQKHUQDWLYH&KLOH

GXULQJKHUOLIHWLPH

$VSDUWRIWKHF\FOLFDOQDWXUHRIHYHQWVLQ7KH+RXVHRIWKH6SLULWVLQWKLV

SHQXOWLPDWHVHFRQGWRODVWFKDSWHU7UDQVLWR6RWRUHWXUQVWKHIDYRU(VWHEDQGLGIRU

KHULQWKHVHFRQGFKDSWHU$OVRLQWKLVFKDSWHU(VWHEDQ*DUFLDH[DFWVUHYHQJHRQ

$OEDIRUZKDWKHUJUDQGIDWKHUGLGWRKLVJUDQGPRWKHULQWKHVHFRQGFKDSWHU7KH

SODFHRIHDFKHYHQWLQWKHVWUXFWXUHRIWKHVWRU\VKRZVWKDWF\FOHVDQGV\PPHWU\DUH

SDUWRIWKHIRUPDVZHOODVWKHFRQWHQWRI7KH+RXVHRIWKH6SLULWV(DFKGHEWLV

UHSDLGHDFKUHYHQJHLVH[DFWHGDQGHDFKFKDUDFWHUFRPHVIXOOFLUFOH6LQFH

HYHU\WKLQJLVF\FOLFDOLWDOOEDODQFHVRXWWKHUHLVDVPXFKEDGDVWKHUHLVJRRG7KH

EDODQFHRIJRRGDQGHYLOWDNHVIRUPLQWKLVFKDSWHULQWKHFURVVLQJRIWKHUHVXOWVRI

WZRVLGHVRI(VWHEDQVFKDUDFWHUKLVJHQHURVLW\WRZDUGV7UDQVLWR6RWRDQGKLV

FUXHOW\WRZDUGV3DQFKDZKLFKUHVXOWLQ$OEDVDEGXFWLRQDQGLQKHUUHFRYHU\7KH


46/46

F\FOHVDUHFRPSOHWHGQRWUDQGRPO\EXWDWSUHFLVHO\VLWXDWHGPRPHQWVLQWKHQRYHO

WKDWGHPRQVWUDWHWKHWH[WVRZQF\FOLFDOVWUXFWXUH

the house of spirits by isabel alende spark notes summary

Documents