ABSTRACT

WKHUHLVQRGLYLQHODZ>4XU¶DQDQG6XQQDK@DQG,KHDUG\RXURSLQLRQVDQG, ZDQW WR DGYLVH \RX:H VKRXOG PDNH RXU GHFLVLRQ DFFRUGLQJ WR WKH EHVW RSLQLRQRQZKLFKZHFDQDJUHH$OODKKDVSURPLVHGXV+HZLOOQRWHQGRUVH RXUGHFLVLRQRQJRLQJDVWUD\>HUURU@¶$EX%DNUIXUWKHUPRUHWULHGWRFRQYLQFH WKHFRPSDQLRQVZLWKVRPH UHOLJLRXV MXVWLILFDWLRQV µ+RZFDQ , IROGXS WKH IODJWKDWKDVEHHQXQIXUOHGE\WKH3URSKHWKLPVHOI"¶ 6HH,EQ.DWKLU $O%LGD\DKZDDO1LKD\DKYROSS±DQGDO7DEDUL7DULNKDO 5XVXOZDDO0XOZNYROSS±

‡ 2QWKHLVVXHRIWKHFRPSLOLQJRIWKH4XU¶DQWKH3URSKHWKDGQRWFRPSLOHG WKH4XU¶DQLQERRNIRUPDQGWKHVLWXDWLRQFDUULHGRQDIWHUKLVGHDWKXQWLOWKH ZDURIULGGDK DSRVWDV\$VDPDWWHURIIDFWWKHUHZHUHPDQ\FRPSDQLRQV ZKRKDGOHDUQWWKH4XU¶DQE\KHDUWDQGZHUHPDUW\UHGWRLWSDUWLFXODUO\LQ WKH ZDU DJDLQVW 0XVDLODPDK DO.KDGGKDE µ8PDU DQG RWKHU FRPSDQLRQV GLVFXVVHGWKHPDWWHUZLWK$EX%DNURIFROOHFWLQJWKH4XU¶DQLQWKHIRUPRID ERRNLQRUGHUWRSUHVHUYHLWIURPµHYHU\NLQGRIGDQJHU¶$EX%DNUKRZHYHU DWWKHEHJLQQLQJKHVLWDWHGEHFDXVHWKLVWDVNKDGQRWEHHQGRQHE\WKH3URSKHW DQGKHSUHIHUUHGWRIROORZWKHSDWKRIWKH3URSKHW)LQDOO\DIWHUFRQVXOWLQJ ZLWKWKHSHRSOHRI6KXUDDQGHQJDJLQJLQVRPHGLVFXVVLRQVKHDJUHHGDQG DSSRLQWHG=DLGE7KDELWZKRKDGDFWHGDVDQDPDQXHQVLVWRWKH3URSKHWWR GRWKHWDVN6HHDO$VTDODQL)DWKDO%DULYROSS+D\NDO SS ± DEX6KDQDE 4D¶GDW$OVKXUD IL0LMWDP¶ 0X¶DVLU SDQGDO6X\XWL7DULNKDO.KXOIDS

$33(1',;

7KHVHDUHVRPHH[DPSOHVRIWKHFRQVXOWDWLRQWKDWWRRNSODFHLQµ8PDU¶VSHULRG

‡ µ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µ8PDUDJUHHGDQGDSSRLQWHG6D¶GE$EL :DTTDVWROHDGWKHDUP\6HHDO%DODGKXUL$QVDEDO$VKUDI S

‡ $ ORW RI PRQH\ ZDV UHFHLYHG E\ WKH RIILFH RI WKH &DOLSKDWH LQ 0HGLQD SDUWLFXODUO\ DIWHU WKH FRQTXHULQJ RI 6\ULD DQG ,UDT µ8PDU FDOOHG WKH FRPSDQLRQVLQRUGHUWRFRQVXOWZLWKWKHPUHJDUGLQJKRZWKHPRQH\VKRXOG EHGHDOWZLWKµ$OLVDLGWKDWWKHPRQH\VKRXOGEHGLYLGHGDPRQJWKHSHRSOH \HDU E\ \HDU DQG VKRXOG QRW EH VWRUHG µ8WKPDQ KRZHYHU VDLG WKDW WKH PRQH\ VKRXOGEHGLVWULEXWHGDPRQJ WKHSHRSOH$O:DOLGE+LVKDPKDGD

GLIIHUHQWLGHDEDVHGRQKLVRZQH[SHULHQFH+HKDGEHHQLQ6\ULDZKHQWKH WUHDVXU\ DQG WKH RIILFH RI DFFRXQWDQF\ ZHUH HVWDEOLVKHG µ8PDU DQG WKH FRPSDQLRQVDSSURYHGDO:DOLG¶VQRWLRQDQGD%DLWDO0DO SXEOLFWUHDVXU\ ZDVHVWDEOLVKHGLQ0HGLQDIRUWKHILUVWWLPHLQWKHKLVWRU\RIWKH,VODPLFVWDWH 6HHDO6X\XWLRSFLWS

‡ ,Q WKH HLJKWHHQWK \HDU VLQFH WKH3URSKHW KDG HPLJUDWHG WR0HGLQD µ8PDU ZHQWWR6\ULDLQRUGHUWRKHDUWKHSUREOHPVRIKLVSHRSOHLQSHUVRQ,QWKH PLGGOHRIKLVMRXUQH\KHZDVWROGWKDWDSODJXHKDGEURNHQRXWWKHUHµ8PDU FDOOHGWKHHDUOLHU0XKDMLUXQDQGFRQVXOWHGZLWKWKHPDVWRZKHWKHUKHVKRXOG JRDKHDGZLWKKLVWULSRUZKHWKHUKHVKRXOGFRPHEDFNWR0HGLQD+RZHYHU WKH\GLYLGHGLQWRWZRJURXSV6RPHZHUHLQIDYRXURIJRLQJDKHDGLQRUGHU WKDWWKHREMHFWLYHRIWKHWULSVKRXOGEHDFKLHYHGRWKHUVPDLQWDLQHGWKDWLWZDV QRWDSSURSULDWH WRFDUU\RQZKLOH WKHGLVDVWHUZDVVSUHDGLQJUDSLGO\ LQ WKH UHJLRQ µ8PDU FDOOHG WKH $QVDU DQG FRQVXOWHG ZLWK WKHP DQG WKH\ ZHUH GLYLGHG DV ZHOO )LQDOO\ KH FDOOHG WKH FKLHIV RI 4XUD\VK ZKR KDG MXVW HPLJUDWHGEHIRUHWKHFRQTXHULQJRI0HFFDDQGDOORIWKHPDGYLVHGKLPWR FRPH EDFN WR0HGLQD µ8PDU DSSURYHG RI WKLV VXJJHVWLRQ DQG FDOOHG WKH SHRSOH WR FRPH EDFN 6HH ,EQ DO+DMMDM $O-DPL¶ DO6DKLK YRO SS±DO$VTDODQLRSFLWYROSS±DQGDO4DVWDOLDQL 1',UVKDGDO6DULYROSS±

$33(1',;

)RU LQVWDQFH µ8WKPDQ FRQVXOWHG ZLWK WKH VKXUD FRXQFLO RQ WKH PDWWHU RI WKH GLIIHUHQWZD\VRIUHFLWLQJWKH4XU¶DQZKLFKKDGDULVHQDPRQJ0XVOLPILJKWHUVLQ $UPHQLD DQG $]HUEDLMDQ +XGKDLIDK E DO<DPDQ RQH RI WKH 3URSKHW¶V FRPSDQLRQVZLWQHVVHGWKHPDWWHUWKHUHDQGH[SODLQHGWRWKH&DOLSKWKHSUREOHP WKDW PLJKW PDWHULDOLVH DPRQJ 0XVOLPV LQ WKH ILUVW ,VODPLF OHJLVODWLRQ +H VXJJHVWHGWKDW0XVOLPVVKRXOGMRLQLQRQHPDQQHURIWKH4XU¶DQDQGDOORIWKH PHPEHUVDJUHHG$VDPDWWHURIIDFW WKH4XU¶DQKDGDOUHDG\EHHQZULWWHQ LQD ERRNIRUPLQ$EX%DNU¶VSHULRGDQGZDVNHSWILQDOO\E\µ8PDO0XPLQLQ+DIVD 7KH&DOLSKWRRNWKHERRNIURP+DIVDDQGRUGHUHGIRXUSURPLQHQWFRPSDQLRQV =DLG E 7KDELW µ$EGDOODK E DO=XEDLU 6D¶LG E DOµ$V DQG$EG$O5DKPDQ DO 0DNK]XPLWRPDNHFRSLHVRIWKH4XU¶DQLQRUGHUWRVHQGDFRS\WRHDFKUHJLRQ WKHRWKHUFRSLHVZHUHEXUQHG6HH,EQ.DWKLURSFLWYROS

$33(1',;

7KHVHDUHVRPHRIWKHPDLQHOHPHQWVRIWKHVWRU\RI$EGDO5DKPDQ¶VHQWU\WRWKH RIILFHRIOHDGHUVKLSLQDO$QGDOXVLQEULHI

‡ $PRQJPHPEHUVRIWKH%DQLµ8PD\\DGVZKRHVFDSHGIURPµWKHVZRUGVRI WKHµ$EEDVLGV¶ ZDVDPDQZKRZDVGHVFULEHGDVEUDYHDQGDPELWLRXV$EG DO5DKPDQ DO'DNKLO µWKH QHZFRPHU¶ WKH VRQ RI 0X¶DZL\D DQG WKH JUDQGVRQ RI &DOLSK +LVKDP +H PDGH WKH ORQJ MRXUQH\ WR 1RUWK $IULFD EHFDXVHKHKDGKHDUGWKDW WKHJRYHUQRURI1RUWK$IULFD$EGDO5DKPDQE +DELEDO)LKULZHOFRPHGPHPEHUVRI%DQLµ8PD\\DGDQGVXSSRUWHGWKHP LQVHWWOLQJDQGOLYLQJWKHUHKRZHYHUZKHQKHDUULYHGWKHUHKHIRXQGWKDWWKH JRYHUQRU DO)LKUL KDG FKDQJHG KLVPLQG LQ GHDOLQJZLWK%DQL µ8PD\\DG UHIXJHHVDQGKDGEHJXQWRNLOOWKHP6RKHHVFDSHGDJDLQWRVHYHUDOSODFHV QHDUWKHERUGHURI1RUWK$IULFDDQGILQDOO\GHFLGHGWRVHWWOHDPRQJWKHIDPLO\ RIKLVPRWKHU1DI]DKLQ&HXWD

‡ 7KHSROLWLFDOVLWXDWLRQLQ6SDLQDW WKDW WLPHZDVRQHRI WKHPRVW LPSRUWDQW IDFWRUVWKDWKHOSHG$EGDO5DKPDQ,WRDFKLHYHKLVGUHDPRIHVWDEOLVKLQJD VWDWHRI%DQL µ8PD\\DG LQ WKH:HVW7KH FRXQWU\ZDV WRUQE\ D FLYLOZDU EHWZHHQ GLIIHUHQW VHFWV RI WKH VRFLHW\ DQG $EG DO5DKPDQ , VHQW KLV IUHHGPDQ %DGU WR WKH FKLHI RI WKH 6\ULDQ IUHHGPHQ RI WKH µ8PD\\DGV µ8EDLGDOODKEµ8WKPDQLQRUGHUWRJDLQKLVVXSSRUWIRUWKHHVWDEOLVKPHQWRI DVHSDUDWHVWDWH LQDO$QGDOXV µ8EDLGDOODKFRQVXOWHGZLWKKLV VXEMHFWVDQG WKH GHFLVLRQ ZDV LQ IDYRXU RI VXSSRUWLQJ$EG DO5DKPDQ , %HFDXVH WKH 6\ULDQ IUHHGPHQ RI WKH µ8PD\\DGV ZHUH QRW D VXSHUSRZHU WKHUH WKH\ GHFLGHGWRFRQIHGHUDWHZLWKRQHRIWKHODUJHVW$UDEWULEHVLQDO$QGDOXVWKH <DPDQ.DOE

‡ $EGDO5DKPDQWKXVWUDYHOOHGWR7RUUR[WRMRLQKLVVXSSRUWHUV7KHJRYHUQRU RIDO$QGDOXV<XVXIDO)LKULRSHQHGDGLDORJXHZLWKKLPLQRUGHUWRSUHYHQW KLPIURPDFKLHYLQJKLVSODQDQGRIIHUHGWKDWKHFRXOGOLYHDQ\ZKHUHKHOLNHG +RZHYHU$EGDO5DKPDQ,UHMHFWHGWKLVRIIHUDQGERWKRIWKHPSUHSDUHGIRU ZDU7KXVWKHEDWWOHRI0XVDUDKWRRNSODFHEHWZHHQWKHWZRSDUWLHVLQ0DUFK DQGDJUHDWYLFWRU\ZDVDFKLHYHGLQIDYRXURI$EGDO5DKPDQ,DQGKLV VXSSRUWHUV +H HQWHUHG &RUGRYD RQ WKH VDPH GD\ DV WKH EDWWOH DQG ZDV SOHGJHGOR\DOW\DVWKHILUVWOHDGHUµDPLURIWKHQHZVWDWH6HH,EQDOµ$WKLU $O.DPLO)LDO7DULNKYROSS±,EQ,¶GKDULDO0DUUDNXVKL $O%D\HQDO0XJKULE)L$NKEDUDO$QGDOXVZDDO0DJKULESS± ,EQDO4XWL\DK7DULNK,IWLWDKDO$QGDOXVSS±,PDPXGGLQ $ 3ROLWLFDO+LVWRU\RI0XVOLP6SDLQSS±DQG1¶DQ¶DL1'7DULNKDO 'DZODKDOµ8PDZL\DK)LDO$QGDOXVDO7DULNKDO6L\DVLSS±

$33(1',;

$EG DO5DKPDQ ,,, DIWHU KH KDG UXOHG RYHU WKH FRXQWU\ IRU VHYHQWHHQ \HDUV DVVXPHGWKHWLWOHRI$PLUDO0XPLQLQµWKHFRPPDQGHURIWKHIDLWKIXO¶SRVVLEO\ EHFDXVHILUVWWKHµ$EEDVLG&DOLSKDWHLQWKH(DVWEHFDPHZHDNHUZKLFKUHVXOWHG LQWKHHVWDEOLVKPHQWRIVHYHUDOLQGHSHQGHQWVWDWHVDQGLWWKHUHIRUHORVWSUHVWLJHLQ

WKH H\HV RI0XVOLPV 6HFRQG WKH FRQVLGHUDWLRQ RI0XVOLPV WKDW WKH&DOLSKDWH EHORQJHGRQO\WRWKHPDQZKRKHOGSRVVHVVLRQRIWKHWZRKRO\FLWLHVRI0HFFD DQG0HGLQDKDGFKDQJHGRQWKHEDVLVWKDWWKH,VODPLFODQGKDGEHHQH[WHQGHGDQG ZDVGLIILFXOWWRUXOHXQGHURQHDXWKRULW\7KLUGWKH)DWLPLGVZKRHPEUDFHGWKH 6KLL VFKRRO DVVXPHG WKH WLWOH RI $PLU DO0XPLQLQ LQ 1RUWK $IULFD ZKLFK WKUHDWHQHG WKH$QGDOXVLDQV EHFDXVH WKH\ HPEUDFHG WKH 6XQQL VFKRRO 6HH DO 7LOPLVDQL1'1DIKDO7LE0LQ*KXVQDO$QGDOXVDO5DWLESS±1¶DQ¶DL RSFLWSS±,PDPXGGLQRSFLWS+LWWL+LVWRU\RIWKH $UDEVIURPWKH(DUOLHVW7LPHVWRWKH3UHVHQWSS±DQG+DVDQ7DULNK DO,VODPDO6L\DVLZDDO'LQLZDDO7KDTDILZDDO,MWPD¶LYROSS±

$33(1',;

‡ $O:DWKLT ELOODK ZDV WKH ILUVW µ$EEDVLG &DOLSK ZKR GLHG ZLWKRXW QRPLQDWLQJD&DOLSK WR UXOHDIWHUKLPEHFDXVHKHGLGQRWZDQW DVKH VDLG KLPVHOIWREHµUHVSRQVLEOHIRUWKH&DOLSKDWHLQKLVOLIHDQGDIWHUKLVGHDWK¶ 7KXV DIWHU WKH GHDWK RI DO:DWKLT WKH 7XUNLVK DUP\ OHDGHUV DQG VRPH SURPLQHQWSHRSOHVXFKDV$KPDGE$EL'DZXG,WDNK:DVLIµ8PDUE)DUM ,EQDO=D\\DWDQG$KPDGE.KDOLGFDOOHGDPHHWLQJLQRUGHUWRFRQVXOWRQ WKH LVVXH RI WKH VXFFHVVLRQ 7KH GHFLVLRQ ZDV LQ IDYRXU RI -D¶IDU DO 0XWDZDNNLOµDODOODK WKHEURWKHURIDO:DWKLT6HHDO<DTXEL7DULNK DO<D¶TXELYROS,EQDOµ$WKLURSFLWYROSS±DQG ,EQ+D]P5DVD¶LO,EQ+D]PDO$QGDOXVL7DKTLT,KVDQµ$EEDVS

‡ 7KH&DOLSKDO0XQWDVLUELOODKGLHGZLWKRXWQRPLQDWLQJDVXFFHVVRU$ PHHWLQJ ZDV FRQYHQHG FRQVLVWLQJ RI D FKLHI VHFUHWDU\ $KPDG DO.KDVLE DQG WKH 7XUNLVK OHDGHUV VXFK DV %DJKD DO.DELU %DJKD DO6DJKLU DQG$WDPLVK WR GLVFXVV WKH LVVXH RI VXFFHVVLRQ $O.KDVLE VXJJHVWHG 0XKDPPDG DO 0XVWD¶LQELOODKZKRZDVDSSURYHGE\WKHRWKHUPHPEHUVRIWKHPHHWLQJDQG KHUHFHLYHGWKHJHQHUDOSOHGJHRIOR\DOW\LQ6HHDO<DTXELRSFLW S,EQDOµ$WKLURSFLWSDQG,EQ+D]PRSFLWS

‡ 7KH WKLUG &DOLSK ZKR ZDV HOHFWHG E\ FRQVXOWDWLRQ ZDV$EX$EGDOODK DO 0X¶WD]]ELOODK+HZDVHOHFWHGE\WKH7XUNLVKDUP\OHDGHUVZKRIRUFHGWKH IRUPHU&DOLSK DO0XVWD¶LQELOODK WR GHSRVHKLPVHOI IURP WKHRIILFHRI WKH &DOLSKDWH$O0XVWD¶LQELOODK HYHQWXDOO\ UHVSRQGHG DQG SDLG WKH SOHGJH RI OR\DOW\WRWKH&DOLSKDO0X¶WD]]ELOODKLQ6HH,EQ+D]PRSFLW SDQGVHHIRUPRUHGHWDLODO<DTXELRSFLW±DQG,EQDO µ$WKLURSFLWSS±

‡ 7KHIRXUWK&DOLSKZDV0XKDPPDGDO0XKWDGLE+DUXQDO:DWKLTELOODKZKR ZDVHOHFWHGLQE\WKH7XUNLVKOHDGHUVRQWKHEDVLV WKDWKHZDVWKHEHVW µ$EEDVLGFDQGLGDWHIRUWKHRIILFHRIWKH&DOLSKDWH+RZHYHUDO0X¶WD]]ELOODK ZDVIRUFHGWRGHSRVHKLPVHOIDQGWKHQZDVNLOOHGE\WKH7XUNLVKDUP\OHDGHUV 6HHDO<DTXELRSFLWSDQG,EQ+D]PRSFLWS

‡ 7KHILIWK&DOLSK$EXDOµ$EEDV$KPDGDO0X¶WDPLGµDODOODKZDVHOHFWHGE\ SURPLQHQW SHRSOH DQG WKH 7XUNLVK DUP\ OHDGHUV LQ 7KH &DOLSK DO

0XKWDGL ZDV GHSRVHG WKHQ NLOOHG E\ WKH 7XUNLVK DUP\ OHDGHUV 6HH DO <DTXELRSFLWS,EQDOµ$WKLURSFLWSDQG,EQ +D]PRSFLWS

‡ 7KH VL[WK &DOLSK ZDV0XKDPPDG E DO0XTWDGLU ELOODK DO4DKLU ELOODK ZKR ZDV HOHFWHG E\ D FKLHI RI WKH UHEHOV 0X¶DQLV DO0X]DIIDU DIWHU FRQVXOWDWLRQZLWK RQH RI WKH SURPLQHQW DUP\ OHDGHUV ,VKDT E ,VPD¶LO+H UHFHLYHGWKHSOHGJHRIOR\DOW\LQ%DJKGDGLQ6HHDO7LOPLVDQLRSFLW SS±DQG1¶DQ¶DLRSFLWSS±

‡ 7KHVHYHQWK&DOLSK$EXDOµ$EEDVDO5DGLELOODKZDVHOHFWHGE\RQHRIWKH HPLQHQW7XUNLVK DUP\ OHDGHUV 6LPDZLWK WKH VXSSRUW RI VRPH OHDGHUV RI ORFDO WULEHVVXFKDVDO+DMMDUL\DKDQGDO6DML\DK 6HH,EQDOµ$WKLU RSFLWYROS

‡ 7KH HLJKWK &DOLSK ZKR ZDV HOHFWHG WKURXJK WKH FRQVXOWDWLRQ SURFHVV ZDV ,EUDKLP DO0XWDTL OLOODK +H ZDV HOHFWHG E\ WKH FRQVXOWDWLYH FRXQFLO FRQVLVWLQJRIWKHPLQLVWHURIVWDWH6XOD\PDQEDO+VDQWKHRWKHUPLQLVWHUWKH µ$EEDVLGVWKHµ$OLGVWKHMXGJHVDQGRWKHUSURPLQHQWSHRSOHLELGS

$33(1',;

7KHFRQVXOWDWLYHFRXQFLOLQ,UDT ‡ =L\DGE$ELKWKHILUVWJRYHUQRURI,UDTHVWDEOLVKHGDFRQVXOWDWLYHFRXQFLO,W FRQVLVWHGRIWZRFRPSRQHQWV7KHILUVWZDVPDGHXSRIHLJKWRIWKH3URSKHW¶V FRPSDQLRQVµ8PUDQEDO+XVDLQDO.KX]D¶L$QDVE0DOLNDO$QVDUL6PUDK E-XQGXEDO+DNDPEµ$PUDO*KLIDUL$EGDOODKE)XGDODKDO/D\WKL$EG DO5DKPDQE$EL6DPUDK=XUDUDKEµ$XIDDO+DUVKLDQGµ$VLPE)XGDODK 7KHVHFRQGFRPSRQHQWFRQVLVWHGRIWKHFKLHIVRIWKHWULEHVRI,UDTDQGRWKHU SURPLQHQWSHRSOHWKHQXPEHURIZKLFKZDVVDLGWREHKXJH$O7DEDULJLYHV WKH QXPEHU DV ILYH KXQGUHG 6HH ,EQ DOµ$WKLU RS FLW YRO SS ±µ$TLO.KLODIDW%DQL8PD\\DKSS±DQGDO7DEDUL RSFLWYROS

‡ %LVKU E 0DUZDQ E DO+DNDP WKH VHFRQG VWDWHKROGHU RI ,UDT IRUPHG D FRQVXOWDWLYH FRXQFLO FRQVLVWLQJ RI WKUHH FDWHJRULHV RI PHPEHUV 7KH ILUVW FDWHJRU\ ZDV WKH 6\ULDQ SHRSOH ZKR KDG DOUHDG\ EHHQ DSSRLQWHG E\ WKH &DOLSK$EG DO0DOLN E0DUZDQ LQ RUGHU WR DGYLVH KLP QDPHO\0XVD E 1XVDLU DO/DNKPL DQG 5ZK E =LQED¶ DO-XGKDPL 7KH VHFRQG FDWHJRU\ FRQVLVWHGRIWZRSURPLQHQWSHRSOH,NULPDKE5DED¶LDQG.KDOLGEµ$WWDEDO 5L\DKL7KHWKLUGFDWHJRU\ZDVPDGHXSRIVFKRODUVVXFKDVµ$PLUDO6K¶DEL 6HH DO0DVXGL1'0XUXM DO'KDKDEZD0DDGLQ DO-DZKDU YRO S DO-DKVKL\DUL$O:X]DUDZDDO.XWWDESDO%DODGKXUL $QVDE DO$VKUDI YRO S DQG DO%DODGKXUL $QVDE DO$VKUDI YROS

‡ $O+DMMDME<XVXIDO7KDTDILZDVWKHWKLUGJRYHUQRURI,UDTDQGKHIRUPHGD FRQVXOWDWLYH FRXQFLO WKDW FRPSULVHG IRU WKH ILUVW WLPHPRVW VHFWLRQV RI WKH

VRFLHW\ ,WFRQVLVWHGRI IRXU W\SHVRIPHPEHUV)LUVWZHUH WKH VFKRODUVDQG MXULVWV VXFK DV 6D¶LG E -XED\U DO.XI\ DQG µ$PLU DO6K¶DEL 6HFRQGZHUH RUDWRUVDQGZULWHUVVXFKDV6KX¶EDEDO4DO¶DPDQGKLVWKUHHVRQV.KDOLG $EGDOODKDQGµ8PDU,EQDO4DUL\DK$\\XEDO+LODOL4XWD\EDKE0XVOLPDO %DKLOL DQG µ$QEDVDK E 6D¶LG E DOµ$V 7KLUG ZHUH JHQHDORJLVWV VXFK DV µ8WEDK E µ8PDU E +LVKDP )LQDOO\ WKHUH ZHUH WKH FKLHIV RI WKH WULEHV 0XKDPPDGE DO0XQWDVKLU DO+DPDGDQL0XKDPPDGE µ8PDLU DO'DULPL DQG+DMMDUEµ$EMDUDOµ$MLOL6HH,EQ6D¶GRSFLWYROS,EQ µ$VDNLU7DKGKLE7DULNK'LPDVKTDO.DELUYROSSDO -DKL]$O%D\DQZDDO7DE\LQYROSS±,EQ.KDOOLNDQ1' :DID\DWHO$\DQZD$QEDDO=DPDQYRSS±,EQDOµ$WKLU RS FLW YRO SS ± DO%DODGKXUL $QVDE DO$VKUDI YRO SDQGDO0DEDUUDG1'$O.DPLOSS±

‡ 7KHIRXUWKVWDWHKROGHURI,UDTZKRFDUHIXOO\FRQVLGHUHGWKHPDNHXSRIKLV FRQVXOWDWLYHFRXQFLO LQRUGHU WRFRQGXFW WKHDIIDLUVRI WKHUHJLRQVPRRWKO\ ZDV µ8PDU E +XEDLUDK DO)L]DUL +LV FRXQFLO FRQVLVWHG RI VFKRODUV DQG MXULVWV LQFOXGLQJ DO+DVDQ E$EL DO+DVDQ DO%DVUL µ$PLU DO6K¶DEL DQG 0XKDPPDGE6LULQDO$QVDUL6HHDO0DVXGLRSFLWYROSDQG,EQ $EG5DEELK$OµLTGDO)DULG YROSS±

7KHFRQVXOWDWLYHFRXQFLOLQ0HGLQD ‡ 0DUZDQ E DO+DNDP ZDV WKH JRYHUQRU ZKR HVWDEOLVKHG D FRQVXOWDWLYH FRXQFLOLQ0HGLQD,WFRQVLVWHGRIWKH3URSKHW¶VFRPSDQLRQVZKRZHUHVWLOO OLYLQJLQ0HGLQD+HFRQVXOWHGZLWKWKHPHPEHUVRIWKHFRXQFLORQDIIDLUVRI WKHFLW\DQGKHLPSOHPHQWHGZKDWWKH\DJUHHGWRGR6HH,EQ6D¶GRS FLWYROSDQG,EQ.DWKLURSFLWYROS

‡ µ8PDU E $EG DO$]L] WKH VHFRQG VWDWHKROGHU RI 0HGLQD IRUPHG D FRQVXOWDWLYH FRXQFLO WKDW FRQVLVWHG RI HOHYHQ PHPEHUV IURP DPRQJ WKH MXULVSUXGHQWVRI0HGLQDQDPHO\µ8UZDKEDO=XEDLU$EX%DNUE6XOD\PDQ µ8EDLGDOODK E$EGDOODK E µ8WED$EX%DNU E$EG DO5DKPDQ E DO+DULWK 6XOD\PDQ E <DVDU DO4DVLP E 0XKDPPDG 6DOLP E $EGDOODK E µ$PU $EGDOODKE$EGDOODKEµ8PDU$EGDOODKE$PLUE5DEL¶D.KDULMDE=D\GDQG 6D¶LGEDO0XVD\\DE+HDSSRLQWHGPHPEHUVWRKLVVKXUD FRXQFLORQKLVILUVW GD\ LQ RIILFH DQG FDOOHG D PHHWLQJ ZLWK WKHP LQ ZKLFK KH H[SODLQHG KLV SROLFLHVVD\LQJKHµZLOOQRWWDNHDQ\GHFLVLRQXQOHVVKHFRQVXOWHGZLWKWKHP DQGKHZLOOIROORZDQGLPSOHPHQWWKHGHFLVLRQVRIWKH6KXUDFRXQFLO¶6HH ,EQ .DWKLU RS FLW YRO S DQG ,EQ DOµ$WKLU RS FLW YROS

‡ 7KHWKLUGJRYHUQRURI0HGLQDZDV$EGDO:DKLGE$EGDOODKDO1DGULZKR IRUPHGDFRQVXOWDWLYHFRXQFLOWRKHOSKLPFRQGXFWORFDODIIDLUVVPRRWKO\+LV VKXUD FRXQFLOFRQVLVWHGRIWZRSURPLQHQWMXULVWVDO4DVLPE0XKDPPDGDQG 6DOLPE$EGDOODKEµ8PDU6HH,EQDOµ$WKLURSFLWYROS

7KHFRQVXOWDWLYHFRXQFLOLQ.KXUDVDQ .KXUDVDQZDVFRQTXHUHGE\WKHSHRSOHRI%DVUDZKLFKDGPLQLVWUDWLYHO\IROORZHG WKH UHJLRQ RI ,UDT 7KH FRQVXOWDWLYH FRXQFLO RI .KXUDVDQ KDG WKUHH W\SHV RI PHPEHUV 7KH ILUVW W\SH ZDV WKH FKLHIV RI$UDE WULEHV ZKR KDG VHWWOHG WKHUH QDPHO\4DLV7DPLP%DNU$]GDQG$EGDO4DLV7KHVHFRQGW\SHZDVWKHOHDGHUV RIWKHDUPLHVDO0XMDVKDKDUE0X]DKLP$EGDO5DKPDQE6XEKDO.KDUTLDQG µ8EDLGDOODK E +DELE DO+LMUL $UP\ OHDGHUV ZHUH SUREDEO\ LQFOXGHG EHFDXVH .KXUDVDQZDVORFDWHGDWWKHERUGHURI,VODPLFWHUULWRU\DQGSHRSOHZDQWHGWREH SUHSDUHGIRUZDURURWKHUHPHUJHQFLHV7KHILQDOW\SHZDVWKHDO0DZDOL JURXS ZKLFKZDVQDPHGDPHPEHURIWKHVKXUD FRXQFLOIRUWKHILUVWWLPH7KUHHRIWKH VHFW¶VOHDGHUVZHUHPHPEHUVQDPHO\DO)DGOE%DVVDP$EGDOODKE$EL$EGDOODK DQGDO%XNKWXULE0XMDKLG6HHµ$WZDQ$O6KL¶UDOµ$UDELEL.KXUDVDQIL DO$VUDO8PDZLSS±,EQDOµ$WKLURSFLWYROS

7KHFRQVXOWDWLYHFRXQFLOLQRWKHU UHJLRQV (DFKUHJLRQRUSURYLQFHDVPHQWLRQHGDERYHKDGLWVRZQFRXQFLO WRGHDOZLWK ORFDODIIDLUV,QPRVWFDVHVWKHFRXQFLOVKDGWZRFDWHJRULHVRIPHPEHUVFKLHIVRI WULEHVDQGVFKRODUVDQGMXULVWV)URPWKLVZHFDQXQGHUVWDQGWKHJHQHUDOSROLFLHV RI WKH JRYHUQPHQW RI%DQL µ8PD\\DGZKLFKZDV EDVHG RQ WKH$UDE SROLWLFDO RUGHU LQ SUH,VODPLF WLPHV(J\SW<HPHQ0HFFD DQG VR RQ IRU LQVWDQFH KDG WKHLU RZQ VKXUD FRXQFLOV KRZHYHU WKH HDUO\ ,VODPLF KLVWRULDQV GLG QRW UHFRUG WKHLUDFFRXQWVRUWKHQDPHVRIPHPEHUVRIWKHVHFRXQFLOVSRVVLEO\EHFDXVHILUVW WKHVLWXDWLRQZDVFDOPDQGVWDEOHLQWKHVHUHJLRQVDQGVHFRQGSHRSOHFRPSOLHG ZLWKWKHRUGHUVDQGSROLFLHVRIWKH&DOLSKVVXFKDVLQ(J\SWDQG<HPHQRUHOVH ZHUHVORZWRFRPSO\XQGHUWKHOHDGHUVKLSRI%DQLµ8PD\\DGDVLQWKHFDVHRI 0HFFDZKLFK KDG EHHQ JRYHUQHG XQGHU WKH DXWKRULW\ RI$EGDOODK E DO=XEDLU XQWLOWKHUHLJQRI$EGDO0DOLNE0DUZDQ

$33(1',;

‡ ,QWKHWLPHRI$EGDO5DKPDQ,WKHRIILFHRIWKHSULPHPLQLVWHUZDVRFFXSLHG E\IRXUSHRSOHQDPHO\7DPPDPEDO4DPDK<XVXIE%XNKW$EGDO.DULP E0DKUDQDQG0DQVXU)DWDK7KHUHZHUHIRXUPLQLVWHUVQDPHO\$EGDOODKE µ8WKPDQ $EGDOODK E .KDOLG <XVXI E %XNKW DQG +DVDQ E 0DOLN 7KH SURPLQHQWSHRSOHZHUHWZRRI$EGDO5DKPDQ¶VVRQVQDPHO\6XOD\PDQDQG +LVKDPSOXV+DELEE$EGDO0DOLNDOµ8PDZL$EGDO0DOLNEµ8PDUDO µ8PDZLDQGµ8PD\\DKE=D\LGZKRZDVDFKLHIVHFUHWDU\7KHPDJLVWUDWHV LQFOXGHG<DK\DE<D]LGDO7XMLEL0X¶DZL\DE6DOLK$EGDO5DKPDQE7DULI µ8PDUE6KXUDKLODO0XV¶DEEµ8PUDQDQG-LGDUE0DVODPDK7KHOHDGHUV RIWKHDUP\ZHUH$EGDO5DKPDQ¶VIUHHGPDQ%DGDUE$KPDG+DELEE$EG DO0DOLNDO4XUDVKL$VLPE0XVOLPDO7KDTDILDQG7DPPDPEµ$O4DPDK

6HH,EQ,¶GKDUL$O%D\DQDO0XJKULE)L$NKEDUDO$QGDOXVZDDO 0DJKULES,EQDO$EEDU$O+XOODKDO6L\DUDYROSS DO7LOPLVDQLRSFLWS+DVDQRSFLWYROS,PDPXGGLQ 0XVOLP6SDLQSDQG,PDPXGGLQRSFLWSS±

‡ 7KHVWUXFWXUHRIWKHFRQVXOWDWLYHFRXQFLOLQWKHUHLJQRI+LVKDP,UHPDLQHG VLPLODUWRZKDWLWKDGEHHQLQKLVIDWKHU¶VUHLJQKRZHYHU+LVKDP,JUDQWHG WKHMXULVWVDQGPDJLVWUDWHVPRUHSRZHUZKLFKOHGWKHPHYHQWXDOO\WRFRQWURO WKH FRXQFLO DQG GRPLQDWH VWDWH DIIDLUV +LVKDP , FRQILUPHG KLV IDWKHU¶V PLQLVWHUV DQGRIILFHUV LQ WKHLU SRVWV7KHRIILFH RI WKH SULPHPLQLVWHUZDV RFFXSLHGE\$EGDO5DKPDQE0XJKLWKDQGKHKDGHLJKWPLQLVWHUV7KHFKLHI VHFUHWDU\ZDV)XWWLVE,VDDQGWKHQ.KDWWDEE=DLG7KHMXGJHZDVDO0XV¶DE Eµ8PUDQDQGWKHOHDGHUVRIWKHDUP\ZHUH$EGDO0DOLNE$EGDO:DKLGDQG $EG DO.DULP E$EG DO:DKLG 6HH ,EQ ,¶GKDUL RS FLW S DO .KXVKDQL4XGDW4XUWXEDKSDO1XEDKL1'7DULNK4XGDWDO $QGDOXVSDQG,PDPXGGLQRSFLWS

‡ $O+DNDPE+LVKDP,IURPWKHEHJLQQLQJRIKLVUHLJQHQGHDYRXUHGWRFXUWDLO SHDFHIXOO\WKHSRZHURIMXULVWVZKRKDGGRPLQDWHGVWDWHDIIDLUVLQKLVIDWKHU¶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¶LG E +DVDQ 7KH MXGJHV ZHUH VHYHQ QDPHO\ 0XV¶DE E µ8PUDQ0XKDPPDGE%DVKLUDO)DUDME.LQDQDK%DKLUE4XWXQµ8EDLGLOODK E0XVD0XKDPPDG E7DOLG DQG+DPLG E0XKDPPDG E<DK\D 6HH ,EQ ,¶GKDULRSFLWSDQGDO1XEDKLRSFLWSS±±

‡ $EG DO5DKPDQ ,, E DO+DNDP HQGHDYRXUHG WR FKDQJH WKH ZD\ WKH DGPLQLVWUDWLYHPDFKLQHU\RIWKHFRXQWU\ZRUNHGJUHDWO\DIIHFWLQJGHFLVLRQ PDNLQJ LQ WKHFRQVXOWDWLYHFRXQFLO+HJDYH WZRFRPSRQHQWVRI WKHVKXUD FRXQFLO WKHRIILFHRISULPHPLQLVWHUDQGWKHPLQLVWHUVVSHFLDOSRZHUVDQG FRQVWUXFWHGDSULYDWHKRXVHLQKLVSDODFHIRUWKHPZKLFKKHFDOOHGµWKHKRXVH RIWKHPLQLVWU\RUWKHPLQLVWHUV¶ %D\W DO:L]DUDKRU DO:X]DUD+HRUGHUHG WKHP WR FRPH WKHUH HYHU\ GD\ WR FRQVXOW ZLWK KLP DV LQGLYLGXDOV RU FROOHFWLYHO\ $GGLWLRQDOO\KHDSSRLQWHGIRUWKHILUVWWLPHDVHFUHWDU\IRUHDFK PLQLVWHUDSUDFWLFHZKLFKZDVUHWDLQHGE\ODWHUUXOHUVXQWLOWKHFROODSVHRIWKH G\QDVW\ 7KH RIILFH RI SULPH PLQLVWHU ZDV RFFXSLHG E\$EG DO.DULP E 0XJKLWKWKHQE\,VDE6KDKLG7KHQLQHPLQLVWHUVLQFOXGHG$EGDO5DKPDQ E5XVWXP<XVXIE%XNKWDQG0XKDPPDGE6DOLPWKHVHFUHWDULHVZHUH$EG DO.DULPE0XJKLWKWKHQ,VDE6KDKLGWKHQ6XI\DQE$EG5DEELKWKHFKLHI RI WKH MXGLFLDU\ ZDV <DK\D E <DK\D DO/D\WKL 6HH ,EQ .KDOGXQ 0XTDGGLPDW ,EQ .KDOGXQ YRO SS ± DO.KXVKDQL RS FLW

S1¶DQDLRSFLWSS±,PDPXGGLQRSFLWSDQG,EQ ,¶GKDULRSFLWS

‡ 0XKDPPDG E $EG DO5DKPDQ ,, FRQILUPHG WKH SULPH PLQLVWHU DQG WKH PLQLVWHUVDQGRWKHURIILFHUVRIKLVIDWKHULQWKHLUSRVLWLRQVEHFDXVHWKH\KDG ZRUNHG YHU\ KDUG DQG KDG H[SHULHQFH 7KH RIILFH RI SULPH PLQLVWHU ZDV RFFXSLHGE\,VDE6KDKLGDQGWKHQE\,EQ$ELµ$EGDK7KHPLQLVWHUVDQGWKH OHDGHUVRIWKHDUP\ZHUHWZHOYHDQGWKHVHFUHWDULHVZHUHWKUHHQDPHO\$EG DO0DOLNEµ8PD\\DK+DPLGE0XKDPPDGDO=DLMDOLDQG0XVDEµ$EEDQ 7KHMXGJHVZHUHDOVRWKUHHQDPHO\$KPDGE=L\DGWKHQµ$PLUE$EGDOODK DQGWKHQ6XOD\PDQDO7KDTDIL6HH,EQ,¶GKDULRSFLWSS±

‡ ,QWKHUHLJQRIDO0XGKLUE0XKDPPDGWKHSRVLWLRQVRISULPHPLQLVWHUDQG WKHPLQLVWHUVZHUHVWLOOSRZHUIXORQHV7KHFRQVXOWDWLYHFRXQFLOFRQVLVWHGRI WKHSULPHPLQLVWHU$EGDO5DKPDQEµ8PD\\DKE6KDKLGWKHPLQLVWHUVZHUH HOHYHQ WKH VHFUHWDULHVZHUH WZR QDPHO\6D¶LG E0XEDVKVKLU DQG$EG DO 0DOLNE$EGDOODKEµ8PD\\DKWKHOHDGHUVRIDUP\ZHUHHOHYHQDPRQJWKHP $EGDOODKE0XGU$\GXQDO)DWDDQG0XKDPPDGE/XEEDQGWKHMXGJHZDV µ$PLUE0X¶DZL\DDO/DNKPL,ELGS1¶DQ¶DLRSFLWSDQG,EQ ,¶GKDULRSFLWS

‡ ,QWKHSHULRGRI$EGDOODKE0XKDPPDGWKHLQIOXHQFHRIWKHPLQLVWHUVDQGWKH OHDGHUVRI WKHDUP\ LQPDNLQJGHFLVLRQVZDVYHU\REYLRXV7KLV LVSUREDEO\ EHFDXVH WKH LQFUHDVH LQ WKHQXPEHURI UHEHOOLRQV OHGKLP WRJUDQW WKHVH WZR FRPSRQHQWVRIWKHFRXQFLOVSHFLDOSRZHUV7KHFRQVXOWDWLYHFRXQFLOFRQVLVWHG RI WKH SULPH PLQLVWHU $EG DO5DKPDQ E 6KDKLG IROORZHG E\ 6D¶LG E 0XKDPPDGEDO6DOLP7KHPLQLVWHUVZHUHWZHQW\VL[LQWRWDOWKURXJKRXWWKH WZHQW\IRXU \HDUV RI $EGDOODK¶V UHLJQ $PRQJ WKHP ZHUH 7DPPDP E µDO 4DPDKDQGDO1DGUE6DODPDKDQG6XOD\PDQE:DQVXV7KHVHFUHWDULHVZHUH WKUHHQDPHO\$EGDOODKE0XKDPPDGDO=LMDOL$EGDOODKE0XKDPPDGE$EL $EGDKDQG0XVDE=L\DG7KHMXGJHVZHUHILYHQDPHO\$EX0X¶ZL\DWKHQDO 1DGUE6DODPDKWKHQ0XVDE=L\DGDO-XGKDPLWKHQ0XKDPPDGE6DODPDK DQG WKHQ DO+DELE E =L\DG DQG WKH OHDGHUV RI WKH DUP\ZHUH IRXU QDPHO\ $KPDGE+DVKLP0XVDEDOµ$VL$EGDO0DOLNE$EGDOODKEµ8PD\\DKDQG $KPDGE0XKDPPDGE$ELµ$EGXK6HH,EQDO4XWL\DK7DULNK,IWLWDK DO$QGDOXVSS±DQG,EQ,¶GKDULRSFLWS

‡ ,QWKHSHULRGRI$EGDO5DKPDQ,,,WKHQXPEHURIPLQLVWHUVDQGOHDGHUVRI WKHDUP\DSSRLQWHGWREHPHPEHUVRIWKHFRQVXOWDWLYHFRXQFLOZDVKXJH)RU LQVWDQFHLQWKH\HDUWKHQXPEHURIPLQLVWHUVDSSRLQWHGLQRQHVL[W\IRXU GD\SHULRGZDVDERXWVL[WHHQ$ FRQVXOWDWLYHFRXQFLOFRQVLVWHGRIWKHSULPH PLQLVWHU %DGU E$PDG WKH PLQLVWHUV DV PHQWLRQHG HDUOLHU ZHUH DOPRVW LQQXPHUDEOHEXW LW LVSRVVLEOH WR OLVW VRPHRI WKHSURPLQHQWRQHV VXFKDV 0XVDE0XKDPPDG$KPDGE0XKDPPDGE+XGDU-DKXUE$EGDO0DOLN 0XKDPPDGE$EGDOODKEµ8PD\\DKDQG$KPDGE$EGDO0DOLNE6KDKLG 7KHVHFUHWDU\ZDV$EGDOODKE0XKDPPDGDO=DLMDOLWKHQ$EGDOODKE%DGU DQG WKHQ$EG DO0DOLN E -DKXU 7KH OHDGHUV RI WKH DUP\ ZHUH$KPDG E 0XKDPPDG E$EL µ$EGXK µ$EEDV E$EG DO$]L] DO4XUDVKL DQG ,VKDT E

0XKDPPDG7KH MXGJHZDV$KPDGE0XKDPPDGE=L\DG WKHQ$VODPE $EGDO$]L]E+DVKLPWKHQ$KPDGE%DTLDQGWKHQ6D¶LGDO%DOOXWL6HH ,EQ ,¶GKDUL RS FLW SS ± DO7LOPLVDQL RSFLWS,PDPXGGLQRSFLWSDO1XEDKLRSFLWS DQGDO.KXVKDQLRSFLWSS±

‡ $O+DNDP,,ZDVKLPVHOIDVFKRODUDQGHVWDEOLVKHGPDQ\VFKRROVLQVWLWXWHV DQG WKH 8QLYHUVLW\ RI &RUGRYD 7KXV KH DGGHG D QHZ FRPSRQHQW WR WKH FRQVXOWDWLYH FRXQFLO FRQVLVWLQJ RI SURIHVVRUV DQG LQWHOOHFWXDOV 7KH FRQVXOWDWLYH FRXQFLO FRPSULVHG WKH SULPH PLQLVWHU -D¶IDU E µ8WKPDQ DO 0XVKDIL WKHPLQLVWHUV LQFOXGHG<DK\D E0XKDPPDG E+DVKLP<DK\D E 0XKDPPDG DO7XMLEL DQG WKH 0LQLVWHU RI (GXFDWLRQ 0XQGKLU E$EG DO 5DKPDQ,,,&KLHIVHFUHWDU\ZDV,VDE)XWWLV7KHOHDGHUVRIWKHDUP\ZHUH IRXUQDPHO\*KDOLEE$EGDO5DKPDQDO1DVLUL+DUL]E+DELO6D¶LGEDO +DNDPDO-D¶IDULDQG0XKDPPDGE4DVLP7KHMXGJHZDV0XQGKLUE6D¶LG DO%DOOXWL WKHQ $EX %DNU 0XKDPPDG DO6DOLDP 7KH SURIHVVRUV DQG LQWHOOHFWXDOVLQFOXGHG0XQGKLUE6D¶LG$EXµ$OLDO4DOLDQG$EX%DNUEDO 4XWL\DK6HHDO7LOPLVDQLRSFLWSS±+LWWLRSFLWS ± ,EQ ,¶GKDUL RS FLW SS ± DQG ,PDPXGGLQ RSFLWS

‡ +LVKDP ,, UHDSSRLQWHG KLV IDWKHU¶V SULPH PLQLVWHU -D¶IDU E µ8WKPDQ DO 0XVKDILDQGWKHQSURPRWHG0XKDPPDGE$ELµ$PLUDIWHUKHKDGDFKLHYHG VLJQLILFDQW VXFFHVV LQ ERWK FLYLO DQG PLOLWDU\ DIIDLUV 0XKDPPDG LQ WKH DEVHQFHRIDVWURQJ&DOLSKFRQWUROOHGWKHFRXQWU\¶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µ$\\DVK0XKDPPDGE-DKXUµ$PLUE$EGDOODKE$ELµ$PLU=LUL E$WL\DKDQG$EGDOODKE$EGDO$]L]DO0DUZDQL7KHOHDGHUVRI WKHDUP\ ZHUH*KDOLEE$EGDO5DKPDQDO1DVLULDQG-D¶IDUEµ$OLDO$QGDOXVLDQG WKH MXGJH ZDV 0XKDPPDG DO6DOLP WKHQ $EX %DNU E =UE DQG WKHQ 0XKDPPDGE<DK\DDO7DPLPL6HH1¶DQ¶DLRSFLWSS±± DQG,EQ,¶GKDULRSFLWSS

‡ $IWHUWKHGHDWKRIWKHSULPHPLQLVWHU0XKDPPDGE$ELµ$PLUKLVWZRVRQV RFFXSLHG WKHRIILFHRISULPHPLQLVWHU ILUVW$EGDO0DOLN DO0X]DIIDU IRU DERXW VHYHQ\HDUV DQG WKHQ$EGDO5DKPDQXQWLO FLYLOZDUEURNH RXW7KH FRQVXOWDWLYHFRXQFLOZDVVWLOOKHDGHGE\WKHSULPHPLQLVWHUDQGLWVVWUXFWXUH DQGPHPEHUVKLSFRQWLQXHGDVLQWKHSHULRGRI0XKDPPDG6HH,PDPXGGLQ RSFLWSS±DQG1¶DQ¶DLRSFLWSS±

$33(1',;

‡ ,QWKHWLPHRI$EXDOµ$EEDVDO6DIIDKWKHSHRSOHZKRZHUHFRQVXOWHGZHUH WKH PLQLVWHUV $EX 6DODPDK +DIV DO.KODO WKH PLQLVWHU RI WKH 3URSKHW¶V IDPLO\WKHQ$EXDO-DKPE$WL\\DKWKHVHFUHWDU\.KDOLGE%DUPDNDQGWKH SURPLQHQWSHRSOHVXFKDV$EX-D¶IDUDO0DQVXU$EX0XVOLPDO.KXUDVDQL %XGD\OE<DK\DDQG'DZXGEµ$OLZKRZDV$EXDOµ$EEDV¶VFRXVLQ6HH DO7DEDULRSFLWYROSS,EQ$EG5DEELK$O µLTGDO)DULGYROS,EQ4XWD\EDKRSFLWYROSS± DO-DKVKL\DUL$O:X]DUDZDDO.XWWDES,EQDOµ$WKLURS FLWYROSDQGDO0DVXGLRSFLWYROS

‡ ,QWKHSHULRGRI$EX-D¶IDUDO0DQVXUWKHSHRSOHZKRZHUHFRQVXOWHGZHUH WKHPLQLVWHUV,EQ$WL\\DKDO%DKOL WKHQ$\\XEDO0XU\DQLWKHQDO5DEL¶ E 8QXVDO+DMLE ,VDE5DZGK WKHQ$EXDO.KDVLE WKHVHFUHWDU\ µ$EEDQE 6DGDTDKDQGWKHSURPLQHQWSHRSOHVXFKDV$EX-D¶IDU¶VXQFOHV6DOLKEµ$OL 6XOD\PDQE,VD,VPD¶LO$EGDO6DPDG,VDEµ$OLDQG-D¶IDUE+DQ]DODKDV ZHOODV,VKDTE0XVOLPDOµ8TD\OL<D]LGE<D]LGDO6XODPLDQG%XGD\OE <K\D6HH,EQ$EG5DEELKRSFLWYROSDO7DEDULRS FLWYROSSDO0DVXGLRSFLWYROSS.HQQHG\ 7KH(DUO\µ$EEDVLG&DOLSKDWHSS±DQG,EQDO µ$WKLURSFLWYROSSYROS

‡ 7KH SHRSOH ZKR ZHUH FRQVXOWHG E\ WKH WKLUG &DOLSK DO0DKGL ZHUH WKH PLQLVWHUV0X¶DZL\DE$EGDOODKDOµ$VKDULWKHQ<DTXEE'DZXGDO6XODPL WKHQ$EX DO)DGO DO5DEL¶ E8QXV WKHQ DO)D\G E$EL 6DOLK DO+DMLE DO 5DEL¶ E8QXV D FKLHI VHFUHWDU\ µ$EEDQE6DGDTDKDQGSURPLQHQWSHRSOH VXFKDV,VDE0XVD$EGDO0DOLNE6DOLKDO+DVDQE4DKWDEDKDQG<DK\DE .KDOLGE%DUPDN,QWKHWLPHRIDO+DGLWKHSHRSOHZKRZHUHFRQVXOWHGZHUH WKHPLQLVWHUVDO5DEL¶ E8QXVIROORZHGE\µ8PDUE5DEL¶DFKLHIVHFUHWDU\ ,EUDKLPDO+DUDQL DO+DMLE DO5DEL¶ E8QXV IROORZHGE\KLV VRQ DO)DGO DQGSURPLQHQWSHRSOHVXFKDVOHDGHUVRIWKHDUP\<D]LGE<D]LGDO6KD\EDQL $EGDOODKE0DOLNµ$OLE0XVDDQG,VDE'D¶EDVZHOODV,EUDKLPE-D¶IDUE $EL-D¶IDUDQG,EUDKLPE6DOPE4XWL\EDK6HHDO7DEDULRSFLWYRO SS±,EQDOµ$WKLURSFLWYRO SSDQG,EQ$EG5DEELKRSFLWYROS

‡ ,Q WKH WLPH RI +DUXQ DO5DVKLG WKH SHRSOH ZKR ZHUH FRQVXOWHG ZHUH WKH PLQLVWHUVVXFKDV<DK\DE.KDOLGE%DUPDNDO)DGOE<D\KDE%DUPDNDQG WKHQDO)DGOEDO5DEL¶ E8QXV DO+DMLE0XKDPPDGE.KDOLGE%DUPDN WKHQ DO)DGO E DO5DEL¶ D FKLHI VHFUHWDU\0DQVXUE=L\DG DQGSURPLQHQW SHRSOHVXFKDVDOµ$EEDVEDO+DVDQDQG-LEULOE%DNKWLVKX¶,QWKHWLPHRI 0XKDPPDGDOµ$PLQGHVSLWHWKHIDFWWKDWFLYLOZDUEURNHRXWEHWZHHQKLP DQGKLVEURWKHUDO0D¶PXQDQGWKHVKRUWQHVVRIKLVUHLJQZKLFKZDVDERXW IRXU\HDUVDQGHLJKWPRQWKVLWLVSRVVLEOHWROLVWVRPHRIWKHSHRSOHZKRZHUH FRQVXOWHGWKHPLQLVWHUDO)DGOEDO5DEL¶DO+DMLEDOµ$EEDVEDO)DGOEDO 5DEL¶DQGSURPLQHQWSHRSOHVXFKDV6LQGLE6KDKLN ,VPD¶LOE6XED\KDO

+DUDQLµ$OLE,VDE0DKDQ0XKDPPDGE+DWKDPDO6DTUDQG0XKDPPDG E,EUDKLPDO,IULTL6HHDO7DEDULRSFLWYROSS DQGYROSS,EQ.DWKLURSFLWYROS,EQDO µ$WKLU RS FLW YRO S ,EQ 4XWD\EDK RS FLW S DO -DKVKL\DULRSFLWSS,EQ.KDOOLNDQRSFLWYROS DO<X]EDNL $O:L]DUDK1DVKDWXKDZD7DWDZZXUKD SS ,EQ $EG5DEELKRSFLWYROSDQG.HQQHG\RSFLWS

‡ ,QWKHWLPHRIDO0D¶PXQWKHSHRSOHZKRZHUHFRQVXOWHGZHUHWKHPLQLVWHUV DO)DGOE6DOLK DO+DVDQE6DOLK$KPDGE$EL.KDOLG$KPDGE<XVXIDO 4DVLP7KDELWE<DK\DDO5D]LDQG0XKDPPDGE<D]GDGDO+DMLE$EGDO +DPLGE6KDELEWKHQ0XKDPPDGWKHQµ$OLE6DOLKDFKLHIVHFUHWDU\$\XEE $EL6DPLUDQGSURPLQHQWSHRSOHVXFKDVWKHOHDGHUVRIWKHDUP\$EGDOODKE 0DOLN<DK\DE0X¶DGKDQG6KDELEE+XPLGE4DKWDEDKDQGDFKLHIRISROLFH DOµ$EEDVEDO0XVLEE=XKL\UDQG$KPDGE6DLI6HH,EQ$EG5DEELK RSFLWYROSDQG,EQDOµ$WKLURSFLWYROS

‡ $O0X¶WDVLP WKH ILUVW µ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µ$PUE)DUMDO)DGOE0DUZDQ$EXDO:D]LUDQG$KPDGDO.KDVLE6HHDO 0DVXGLRSFLWYROSS±±±,EQ$EG5DEELK RS FLW YRO SS ± ,EQ DOµ$WKLU RS FLW YRO S DO <X]EDNLRSFLWSS±DQG+DVDQRSFLWYROS

‡ )URPWKHEHJLQQLQJRIWKHVHFRQGSHULRGRIWKHµ$EEDVLG&DOLSKDWHDWLPHRI ZHDNQHVV DQG PLOLWDU\ FRQIXVLRQ WKH FRQVXOWDWLYH FRXQFLO FRQVLVWLQJ RI JURXSV RI SHRSOH RU SHUPDQHQW SRVLWLRQV FOHDUO\ GLVDSSHDUHG 7KLV LV SUREDEO\ EHFDXVH WKH7XUNV FRQWUROOHG WKH RIILFH RI WKH&DOLSKDWH DQG WKH JRYHUQPHQWPDFKLQHU\)RULQVWDQFHHLJKW&DOLSKVRIWZHOYHZHUHHOHFWHGE\ WKH7XUNV