Академический Документы
Профессиональный Документы
Культура Документы
CONFIDENTIAL
EXHIBIT 40-C
to the
JOINT OPPOSITION OF THE GAWKER DEFENDANTS AND THEIR
COUNSEL TO PLAINTIFFS EMERGENCY MOTION TO CONDUCT
DISCOVERY CONCERNING POTENTIAL VIOLATION OF
PROTECTIVE ORDER, TO COMPEL TURNOVER OF CONFIDENTIAL
DISCOVERY MATERIALS AND FOR ORDER TO SHOW CAUSE
CONFIDENTIAL
EXHIBIT 41-C
to the
JOINT OPPOSITION OF THE GAWKER DEFENDANTS AND THEIR
COUNSEL TO PLAINTIFFS EMERGENCY MOTION TO CONDUCT
DISCOVERY CONCERNING POTENTIAL VIOLATION OF
PROTECTIVE ORDER, TO COMPEL TURNOVER OF CONFIDENTIAL
DISCOVERY MATERIALS AND FOR ORDER TO SHOW CAUSE
BOLLEA 001166
CONFIDENTIAL
EXHIBIT 42-C
to the
JOINT OPPOSITION OF THE GAWKER DEFENDANTS AND THEIR
COUNSEL TO PLAINTIFFS EMERGENCY MOTION TO CONDUCT
DISCOVERY CONCERNING POTENTIAL VIOLATION OF
PROTECTIVE ORDER, TO COMPEL TURNOVER OF CONFIDENTIAL
DISCOVERY MATERIALS AND FOR ORDER TO SHOW CAUSE
DOCUMENT:
ORDER:
PARAGRAPH: 10.D(15)
*These documents also were sealed under Paragraph 8.D(15) of the October
27, 2015 Order.
did not sign privacy waivers, the names of the complaining parties have been redacted. Still, the
documents make clear that the complaints have to do with threats directed toward Mr. Clem. 1
A.
The FBI produced a Form FD-302 documenting a statement to the FBI interview by the
person principally complaining about the alleged threats. From the context, that person was
obviously Mr. Clem. For example, the FBIs official statement identified him as someone with a
radio show that was at one time broadcast on Sirius Radio. Conf. Ex. 1-C at 1-2. According
to the statement, the FBI asked him to explain his role in the filming and producing of the sex
tapes between his [redacted, presumably wife] HEATHER COLE (formerly CLEM) and
TERRY BOLLEA, aka HULK HOGAN. Id. at 1. In response, he stated that COLE wanted to
sleep with BOLLEA while they were married and further advised COLE was into sleeping with
other men and taping the act. Id. That same summary describes him as having stated that he,
COLE and BOLLEA all knew that they were being filmed. . . . The camera was not concealed;
rather it was a security type camera in the room which fed to the master security unit. Id. at 2.
He again advised that the camera was obvious and everyone knew about the filming. Id.
B.
The FBI documents also contain another Form FD-302 documenting a statement to the
FBI by another person who accompanied Mr. Clem and who made similar complaints on his own
behalf to the Bureau. From the context, that person is obviously Stephen Diaco, Esq., widely
known to be one of Mr. Clems lawyers. Specifically, that official statement describes an
incident that occurred on September 28, 2012 in which this person and two other associates
1
Although the FBI has redacted the identities, Gawker currently has pending before the
federal court a request to provide unredacted versions of the documents produced. We have
provided the redacted versions now so that they are submitted promptly to the Court. If
unredacted versions are ordered produced, we will submit them upon receipt.
2
went to an office in St. Petersburg for the purpose of asking someone employed there to stop
posting threatening and intimidating messages on the internet. Conf. Ex. 2-C at 1. According
to his statement to the FBI, the person confronted at his office later created an entry on his
blog that contained information regarding the confrontation. Id. The FBIs latest document
production includes a blog post in which the author describes being paid a visit by Bubba the
Love Sponges attorney and friend Stephen Diaco at his office in Saint Petersburg on
September 28, 2012, and being confronted about alleged threats directed at Mr. Clem. Conf.
Ex. 3-C.
C.
Mr. Clems complaints focused on a group of six people calling themselves the sixers,
whom Mr. Clem claimed were harassing and threatening him online. See Conf. Ex. 4-C. Mr.
Clems concerns about threats and harassment from his online critics have been well
documented. See, e.g., Conf. Ex. 5-C (Nov. 23, 2013 Tampa Bay Times article describing Mr.
Clems complaints to law enforcement about those critics); Conf. Ex. 6 (Dec. 13, 2012 blog post
from one such critic referring to the drama surrounding Bubba and the Sixers). 2
D.
Evidence that People Other than Gawker and Its Counsel Had Access to the
Footage At Issue
As relevant here, the newly-produced FBI documents reveal that, among the threats Mr.
Clem faced were threats to release additional sex tape footage. For instance, on October 21,
2012, one of the members of this group apparently tweeted the following at Mr. Clem: Tell you
a little secret. Depending on how tomorrows show goes down, you might get to hear about
2
Although published news reports are obviously not confidential, filing them publicly
might arguably reveal the substance of the confidential FBI documents discussed herein.
Accordingly, we have filed them confidentially as well, while preserving our ability to challenge
those designations.
3
another sex tape. Conf. Ex. 7-C; see also Conf. Ex. 8-C (timeline summarizing various
threatening communications). The next day, someone apparently tweeted a photograph of a
DVD at Mr. Clem, along with this message: [Redacted] you want to tell you[r] public
audience you have more tapes or shall I? @TMZ. Conf. Ex. 9-C (referencing TMZ, which
shortly before this tweet was sent had reported that it had seen a copy of another sex tape, which
turns out to have been the one with the racist language on it); see also Joint Opp. Ex. 17 at 1:50
2:15 (TMZ conceding it had been provided with and seen a copy of that footage). Mr. Clem and
his counsel apparently found these tweets concerning enough, at least in the context of the other
threats he had received, to bring them to the attention of the FBI.
Mr. Clem and/or Mr. Diaco also prepared and provided to the FBI a timeline of events
related to his complaints concerning the threats and harassment he had received; as reflected
therein, it was centered around the possible disclosure of additional sex tape footage. See Conf.
Ex. 8-C. Thus, taken together, these documents reveal a group of six people who appear to have
had access to additional sex tapes and who threatened Mr. Clem with further release in a manner
that he and his counsel thought was serious enough to warrant involving the FBI.
In bringing this to the Courts attention, neither Gawker nor its counsel intends to suggest
that this group of people was necessarily responsible for providing information to the National
Enquirer about Bolleas racist and homophobic statements on one of the sex tapes. All Gawker
and its counsel know for certain about who provided that information is that it was not them.
The point in bringing this additional information to the Courts attention is to underscore that, in
addition to the numerous other people identified in the Joint Opposition, there are even more
people, unconnected to this litigation, who knew about these additional tapes, had previously
threatened to release them, and, unlike Gawker and its counsel, actually had access to them.
Respectfully submitted,
THOMAS & LOCICERO PL
By:
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 25th day of August 2015, I caused a true and correct
copy of the foregoing to be served via the Florida Courts E-Filing Portal upon the following
counsel of record:
Kenneth G. Turkel, Esq.
kturkel@BajoCuva.com
Shane B. Vogt, Esq.
shane.vogt@BajoCuva.com
Bajo Cuva Cohen & Turkel, P.A.
100 N. Tampa Street, Suite 1900
Tampa, FL 33602
Tel: (813) 443-2199
Fax: (813) 443-2193
EXHIBIT 1-C
to the
EXHIBIT 2-C
to the
EXHIBIT 4-C
to the
EXHIBIT 7-C
to the
EXHIBIT 8-C
to the
EXHIBIT 9-C
to the
DOCUMENT:
ORDER:
PARAGRAPH: 10.F(1)
*This document also was sealed under Paragraph 8.F(1) of the October 27,
2015 Order.
CONFIDENTIAL
EXHIBIT 2-C
to the
GAWKER DEFENDANTS MOTION
TO DETERMINE CONFIDENTIALITY OF
TRANSCRIPTS OF CLOSED COURT PROCEEDINGS
1
IN THE CIRCUIT COURT OF THE SIXTH JUDICIAL CIRCUIT
IN AND FOR PINELLAS COUNTY, FLORIDA
TRANSCRIPT OF:
CONFIDENTIAL PROCEEDINGS
BEFORE:
DATE:
TIME:
3:20 p.m.
PLACE:
REPORTED BY:
2
APPEARANCES:
KENNETH G. TURKEL, ESQUIRE
Bajo Cuva Cohen & Turkel, P.A.
100 North Tampa Street
Suite 1900
Tampa, Florida 33602
- and CHARLES J. HARDER, ESQUIRE
Harder Mirell & Abrams LLP
1801 Avenue of the Stars
Suite 1120
Los Angeles, California 90057
Appeared for Plaintiff;
SETH D. BERLIN, ESQUIRE
Levine Sullivan Koch & Schulz, LLP
1899 L Street Northwest
Suite 200
Washington, DC 20036
- and PAUL J. SAFIER, ESQUIRE
Levine Sullivan Koch & Schulz, LLP
1760 Market Street
Suite 1001
Philadelphia, Pennsylvania 19103
- and GREGG D. THOMAS, ESQUIRE
Thomas & LoCicero PL
601 South Boulevard
Tampa, Florida 33606
Appeared for Defendants Gawker Media,
LLC, Nick Denton, A.J. Daulerio and for
specially appearing Defendant Blogwire
Hungary Szellemi Alkotast Hasznosito, KFT
(now known as Kinja, KFT).
3
1
* * * * * *
10
MR. HARDER:
11
12
13
14
THE COURT:
15
MR. HARDER:
16
same tape.
17
THE COURT:
18
MR. HARDER:
19
MR. BERLIN:
20
21
MR. HARDER:
22
MR. BERLIN:
I'm sorry.
I thought you
MR. HARDER:
I wasn't.
So he reported
23
24
25
were.
it to the FBI.
4
1
Davidson.
10
11
12
13
time.
And
14
15
16
17
18
19
20
21
22
23
24
25
I think
5
1
2
3
THE COURT:
MR. BERLIN:
10
11
12
13
14
15
16
THE COURT:
This obviously
17
18
Right?
19
MR. BERLIN:
20
21
22
and forth.
23
24
25
6
1
THE COURT:
your papers.
10
11
12
13
14
MR. BERLIN:
So I think
I think they
So
15
16
17
18
19
20
21
22
THE COURT:
in hot water.
MR. HARDER:
23
24
25
newsworthy.
7
1
THE COURT:
MR. BERLIN:
filed it.
So we understand it.
10
11
12
13
14
15
16
17
THE COURT:
18
MR. BERLIN:
We don't
You're in trouble.
-- they might do something.
19
20
don't do that.
21
22
23
THE COURT:
24
MR. HARDER:
25
THE COURT:
But I
8
1
MR. BERLIN:
THE COURT:
MR. BERLIN:
THE COURT:
MR. BERLIN:
others.
Okay.
The
So just --
10
THE COURT:
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Great.
Thank you.
9
CERTIFICATE OF REPORTER
STATE OF FLORIDA:
COUNTY OF HILLSBOROUGH:
I, Natalie W. Breaux, Notary Public in and
for the State of Florida at Large, do hereby certify
that I reported in shorthand the foregoing
proceedings at the time and place therein designated;
that the witness herein was duly sworn by me; that my
shorthand notes were thereafter reduced to
typewriting under my supervision; and that the
foregoing pages are a true and correct, verbatim
record of the aforesaid proceedings.
Witness my hand and seal April 25, 2014, in
the city of Tampa, County of Hillsborough, State of
Florida.
Natalie W. Breaux
Notary Public
State of Florida at Large
DOCUMENT:
ORDER:
PARAGRAPH: 10.F(2)
*This document also was sealed under Paragraph 8.F(2) of the October 27,
2015 Order.
CONFIDENTIAL
EXHIBIT 3-C
to the
GAWKER DEFENDANTS MOTION
TO DETERMINE CONFIDENTIALITY OF
TRANSCRIPTS OF CLOSED COURT PROCEEDINGS
&RQILGHQWLDO
,17+(&,5&8,7&28572)7+(6,;7+-8',&,$/&,5&8,7
,1$1')253,1(//$6&2817<)/25,'$
&,9,/',9,6,21
7(55<*(1(%2//($
SURIHVVLRQDOO\NQRZQDV+8/.
+2*$1
3ODLQWLII&DVH1R
&,
YV
+($7+(5&/(0*$:.(50(',$
//&DND*$:.(50(',$HW
DO
'HIHQGDQWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&21),'(17,$/$77251(<
6(<(621/<
+($5,1*%()25(7+(+2125$%/(-$0(65&$6(
'$7(-XO\
7,0(DPWRSP
3/$&(5LHVGRUSK5HSRUWLQJ*URXS
&OHYHODQG6WUHHW
6XLWH
&OHDUZDWHU)ORULGD
5(3257('%<$DURQ73HUNLQV535
1RWDU\3XEOLF6WDWHRI
)ORULGDDW/DUJH
3DJHVWR
&RQILGHQWLDO
$33($5$1&(6
&+$5/(6-+$5'(5(648,5(
+DUGHU0LUHOO $EUDPV//3
&HQWXU\3DUN(DVW
6XLWH
/RV$QJHOHV&DOLIRUQLD
DQG
.(11(7+*785.(/(648,5(
%DMR&XYD&RKHQ 7XUNHO3$
1RUWK7DPSD6WUHHW
6XLWH
7DPSD)ORULGD
$WWRUQH\VIRU3ODLQWLII
&217,18('
&RQILGHQWLDO
$33($5$1&(6&217,18('$6)2//2:6
6(7+'%(5/,1(648,5(
0,&+$(/'68//,9$1(648,5(
/HYLQH6XOOLYDQ.RFK 6FKXO]//3
/6WUHHW1:
6XLWH
:DVKLQJWRQ'&
DQG
0,&+$(/%(55<(648,5(
/HYLQH6XOOLYDQ.RFK 6FKXO]//3
0DUNHW6WUHHW
6XLWH
3KLODGHOSKLD3$
DQG
*5(**'7+20$6(648,5(
7KRPDV /R&LFHUR3/
6RXWK%RXOHYDUG
7DPSD)ORULGD
DQG
+($7+(5/',(75,&.(648,5(
*HQHUDO&RXQVHO
*DZNHU0HGLD
(OL]DEHWK6WUHHW
7KLUG)ORRU
1HZ<RUN1HZ<RUN
$WWRUQH\VIRU'HIHQGDQW*DZNHU0HGLD//&
HWDO
&RQILGHQWLDO
,1'(;
3$*(
352&((',1*6
5(3257(5
6&(57,),&$7(
&RQILGHQWLDO
352&((',1*6
+HDULQJSURFHHGLQJVFDOOHGWRRUGHUDW
DP
-8'*(&$6(:HOOZHOFRPHEDFN
05+$5'(57KDQN\RX$QGWKDQNVIRU
VFKHGXOLQJDQGILWWLQJXVDOOLQ
-8'*(&$6(,WZRUNHGRXWDEVROXWHO\ILQH
2QWKHDPHQGHGQRWLFHRIWKHKHDULQJ,KDYH
JRWDPRWLRQIRUVDQFWLRQVE\WKHGHIHQGDQWVLQ
ZKLFK,WKLQN\RXZDQWWRWDNHILUVWLVWKDW
ULJKW"
05%(5/,1<HV
-8'*(&$6(2ND\
05+$5'(57KH\ILOHGLWILUVW
-8'*(&$6($QGWKHQVXEVHTXHQWWRWKDWLV
WKHSURWHFWLYHWKHPRWLRQIRUSURWHFWLYHRUGHU"
05+$5'(55LJKW
-8'*(&$6(2ND\
05+$5'(57KHUHPD\EHVRPHRYHUODSZKHQ
ZHWDONDERXWWKHPVR
-8'*(&$6(7KDW
VILQH
05%(5/,1$QGZHWKRXJKW
05%(55<$QGWLPHSHUPLWWLQJDWWKHHQG
&KDUOHVDQG,KDGWDONHGODVWZHHNDERXW
GHYHORSLQJDVFKHGXOHSHUKDSVIRUGLVFRYHU\DQG
&RQILGHQWLDO
PRYLQJIRUZDUGZLWKDQH\HWRZDUGVWKHSRVVLELOLW\
RIDWULDO$QG,GRQ
WNQRZWKDWZHFDQKDVK
WKDWDOOKHUHEXWLWPD\EHKHOSIXOWRWDOND
OLWWOHELWDERXWWKDWDQGWKHSRVVLELOLW\RI
SHUKDSVVHWWLQJDFDVHPDQDJHPHQWFRQIHUHQFH
-8'*(&$6(7KDW
VILQH
05+$5'(56XUH,WKLQNWKDW
VDJUHDW
LGHD
0U%ROOHDPD\KHQHHGVWROHDYHDURXQG
QRRQVRLIZHILQLVKXSZLWKWKHPRWLRQVKHPD\
MXVWH[LWRXWMXVWEHFDXVHKHKDVDZRUN
FRPPLWPHQWDQGWKHQZH
OOSURFHHGZLWKRXWKLPRQ
WKHKRXVHNHHSLQJPDWWHUV
-8'*(&$6(2ND\
05+$5'(5$QGMXVWRQHRWKHUNLQGRI
SUHOLPLQDU\WKLQJ:HZHUHKRSLQJWKDW'DYLG
+RXVWRQZRXOGEHDYDLODEOHWRMRLQXV'DYLGZDV
DWWKHGHSRVLWLRQV
-8'*(&$6(5LJKW
05+$5'(5+H
VLQWULDOWRGD\+HKDVD
YHU\IXOOWULDOVFKHGXOHDQGVRWU\LQJWRJHW
HYHU\ERG\KHUHLQ)ORULGDDWRQHWLPHZHZHUHQ
W
DEOHWRGRLWDQGLQFOXGHKLPWRREHFDXVHRIKLV
VFKHGXOHDQGRXUVFKHGXOHVVR,
PVRUU\KH
FRXOGQ
WEHKHUHEXW
&RQILGHQWLDO
-8'*(&$6(7KDW
VDOOULJKW
05+$5'(5KH
VZLWKXVLQVSLULW
-8'*(&$6(:H
UHJRRG
:HOO\RX
UHLQWKHIURQWFKDLUVR,DVVXPH
\RX
UHVSHDNLQJILUVW
05%(5/,1,ZLOOKDQGOHWKHPRWLRQIRU
VDQFWLRQV
-8'*(&$6(2ND\2Q
05%(5/,1$QG0LNHZLOOKDQGOHWKHPRWLRQ
IRUSURWHFWLYHRUGHU$QG,ZLOOWU\DQG
DOWKRXJKWKHUHLVVRPHRYHUODS,
OOWU\WRGHIHU
RQWKDWVXEMHFWWR0LNH
2QRXUPRWLRQIRUVDQFWLRQV<RXU+RQRUZKHQ
WKLVFDVHEHJDQ0U%ROOHDDQGKLVFRXQVHO
DGYDQFHGDYHUVLRQRIHYHQWVERWKLQWKHODZVXLW
DQGLQPDQ\SXEOLFVWDWHPHQWVWKDWWKH\PDGH
LQFOXGLQJRQDPHGLDWRXUWKDWZHWDONHGDERXWDW
0U%ROOHD
VGHSRVLWLRQ
,QUHVSRQVHWRWKHFDVH*DZNHUKDVDGYDQFHG
ERWKOHJDODUJXPHQWVDQGIDFWXDODUJXPHQWV$VWR
WKHIRUPHU*DZNHUEHOLHYHVWKDWWKHSXEOLFDWLRQ
DWLVVXHLVSURWHFWHGVSHHFKDQGFDQ
WEHSXQLVKHG
FRQVLVWHQWZLWKWKH)LUVW$PHQGPHQW:H
UH
FRQWLQXLQJWROLWLJDWHWKDWLVVXHDWWKHPRPHQWLQ
WKH6HFRQG'&$
&RQILGHQWLDO
$VWRWKHODWWHULVVXHWKHIDFWXDOFODLPV
WKDW0U%ROOHDKDVPDGHZH
YHVRXJKWWR
XQGHUVWDQGWKHIDFWVLQFOXGLQJKRZWKLVVH[WDSH
ZDVPDGHZKHWKHUSODLQWLIINQHZDERXWLWVRXJKW
WRFDSLWDOL]HRQLWVGLVWULEXWLRQZKRHOVHNQHZ
DERXWLWDQGHYHQKRZWKHWDSHFDPHWREHVHQWWR
*DZNHUZKLFKLVVRPHWKLQJLQWKHODVWKHDULQJZH
KDGLQIURQWRI-XGJH&DPSEHOOVKHWKRXJKWZDVD
NH\WRWKHFDVH
6RD\HDUDJRDWWKLVSRLQWZHVHUYHG
ZULWWHQGLVFRYHU\$QGWRWKDWHQGWKDW
GLVFRYHU\DVNVIRULQIRUPDWLRQDQGGRFXPHQWVDERXW
WKHVH[XDOUHODWLRQVKLSEHWZHHQ0U%ROOHDDQG
+HDWKHU&OHP7KDWGLVFRYHU\DVNVZKHQWKDW
UHODWLRQVKLSRFFXUUHG7KDWGLVFRYHU\DVNHGKRZ
PDQ\WLPHV0U%ROOHDKDGEHHQYLGHRWDSHGKDYLQJ
VH[7KDWGLVFRYHU\DVNHGIRULQIRUPDWLRQDQG
GRFXPHQWVUHIHUULQJRUUHIOHFWLQJFRPPXQLFDWLRQV
DERXWWKDWVH[XDOUHODWLRQVKLS$QGWKDW
GLVFRYHU\DVNVIRULQIRUPDWLRQDQGGRFXPHQWV
UHODWHGWRSODLQWLII
VPHGLDDSSHDUDQFHVEDVLF
VWXII
,QUHVSRQVH0U%ROOHDDQGKLVFRXQVHO
DUJXHGWKDWGLVFRYHU\VKRXOGEHOLPLWHG,Q
SDUWLFXODUWKH\FRQWHQGHGWKDWWKHRQO\WKLQJ
&RQILGHQWLDO
UHOHYDQWKHUHZDVWKLVRQHWDSHDQGWKLVRQH
HQFRXQWHUGHSLFWHGRQWKDWRQHWDSH:HDUJXHGLQ
UHVSRQVHWKDWSODLQWLII
VYLHZRIZKDWZDV
UHOHYDQWZDVWRRQDUURZ$QGWKHSDUWLHV
OLWLJDWHGWKDWLVVXHEDFNLQ2FWREHURIDW
WKHILUVWRIPDQ\GLVFRYHU\KHDULQJVWKDWZH
YH
KDGLQWKLVFDVH$QG0U%ROOHDORVW
$V<RXU+RQRUNQRZV-XGJH&DPSEHOOKHOGWKDW
WKHGLVFRYHU\LQWKHFDVHSURSHUO\H[WHQGHGWRWKH
HQWLUHW\RIWKHVH[XDOUHODWLRQVKLSEHWZHHQ
0U%ROOHDDQG+HDWKHU&OHP6KHHPSKDVL]HGWKDW
SRLQWE\PDNLQJWKHWLPHSHULRGDSSOLFDEOHDWWKDW
SRLQWQRZDOLWWOHORQJHU%XWLI\RXWDNHZKDW
WKHSHULRGZDVZKHQWKDWRUGHUZDVLVVXHGLWZDV
VRPH\HDUVVRLWZDVFOHDUO\QRWOLPLWHGWR
MXVWRQHHQFRXQWHURURQHWDSH
7KDWRUGHUWKHRUGHUWKDW-XGJH&DPSEHOO
LVVXHGPDGHFOHDUWKDW0U%ROOHDQHHGHGWR
VXSSOHPHQWKLVGLVFRYHU\UHVSRQVHVRQWKDWSRLQW
DQGH[SUHVVO\UHIHUHQFHGDQG,
PTXRWLQJIURP
WKHRUGHU7HUU\%ROOHD
VREOLJDWLRQVWRSURYLGH
VXSSOHPHQWDOUHVSRQVHVWRWKHLQWHUURJDWRULHVDQG
UHTXHVWIRUSURGXFWLRQIRUGRFXPHQWVLQDPDQQHU
FRQVLVWHQWZLWKWKHIRUHJRLQJUXOLQJLHWKH
IXOOUHODWLRQVKLSEHWZHHQ0U%ROOHDDQG0V&OHP
&RQILGHQWLDO
7KDWLVVXHFDPHXSDJDLQDFRXSOHKHDULQJV
ODWHURQ-DQXDU\WKRIWKLV\HDU$QGWKH
TXHVWLRQZDVZKDWWRGRLIWKHUHZHUHRWKHUWDSHV
LQYROYLQJ0U%ROOHDDQG0V&OHP$QG
-XGJH&DPSEHOODJDLQIRXQGWKDWWKRVHRWKHU
WDSHVZHUHSURSHUO\ZLWKLQWKHVFRSHRIGLVFRYHU\
6KHGLUHFWHGWKDWWKH\EHSUHVHUYHGDQGWKDWWKH\
EHSURYLGHG,IHLWKHUWKHSODLQWLIIKDGWKHPRU
LI0U&OHPKDGWKHPWKH\ZRXOGEHSURYLGHGWR
<RXU+RQRUWREHYLHZHGDQGDVDSSURSULDWH
WUDQVFULEHGE\DQRIILFLDOFRXUWUHSRUWHU
1RZLWVHHPVFOHDUQRZZK\0U%ROOHDDQG
KLVFRXQVHOZHUHWU\LQJWROLPLWGLVFRYHU\WRMXVW
WKLVRQHWDSHDQGWKHRQHHQFRXQWHUEXWWKH\ORVW
WKDWLVVXH
1RZLQDGGLWLRQWROLWLJDWLQJWKDWLVVXH
ILUVWLQ2FWREHURIODVW\HDUDQGWKHQLQ-DQXDU\
WKHQH[WWKLQJWKDWWKHSODLQWLIIDQGKLVFRXQVHO
GLG,WKLQNKHUHLVZKHUHWKLQJVJHW
LQWHUHVWLQJ<RXU+RQRUGHVSLWHWKDWUXOLQJ
WKH\HQJDJHGLQDVHULHVRIPLVUHSUHVHQWDWLRQVWR
XVDQGPRUHLPSRUWDQWO\WR\RXDQGWR
-XGJH&DPSEHOO<RXU+RQRUWKDWZHUHGHVLJQHGWR
FRQFHDOWKHH[LVWHQFHRILQIRUPDWLRQDQGGRFXPHQWV
WKDW-XGJH&DPSEHOOKDGSODLQO\IRXQGWREH
&RQILGHQWLDO
UHOHYDQWDQGSURSHUO\ZLWKLQWKHVFRSHRI
GLVFRYHU\
7KH\GRQ
WUHDOO\DGGUHVVWKDWSRLQWLQWKHLU
SDSHUVEXWWKDW
VUHDOO\WKHKHDUWRIWKHLVVXH
$QGWKH\VWDUWHGLQVRPHUHVSHFWVEDFNDWWKH
2FWREHUWKKHDULQJ6RRQHRIWKHWKLQJVZH
DUJXHGDWWKDWKHDULQJZDVWKDWZHKDGUHFHLYHGQR
SULYLOHJHORJDWDOO$QGLQUHVSRQVHWRWKDW
DUJXPHQW0U+DUGHUUHSUHVHQWHGWR
-XGJH&DPSEHOOTXRWH7KHUHDUHQRSULYLOHJHG
FRPPXQLFDWLRQVWKDW,
PDZDUHRIDQG,KDYHDVNHG
IRUWKHPDQG,KDYHGRQHHYHU\WKLQJ,FDQWRILQG
WKHPHQGTXRWH
/DWHURIFRXUVHWKHSODLQWLIIZRXOGDVVHUW
SULYLOHJHDVWRWKHHQWLUHVHWRI)%,GRFXPHQWV
HYHQWKRXJKWKRVHGRFXPHQWVXQTXHVWLRQDEO\UHODWHG
WRWKHVH[XDOUHODWLRQVKLSEHWZHHQ0U%ROOHDDQG
0V&OHPDQGWKHYLGHRUHFRUGLQJVRILW
,QGHHGLI\RXDFFHSWHGHYHQWKHSODLQWLII
V
YHUVLRQRIHYHQWVZKLFKLVWKDWWKLVFDVHWKDW
WKHGLVFRYHU\LQWKLVFDVHZDVOLPLWHGWRMXVW
WKLVRQHHQFRXQWHUDQGWKLVRQHWDSHWKDWVWXII
ZRXOGKDYHEHHQGLVFRYHUDEOHEHFDXVHLWSHUWDLQV
LQSDUWWRWKHWDSHWKDW
VDWLVVXHWKDWZDV
SXEOLVKHGE\*DZNHUDQGWKHH[FHUSWVGHVFULEHGLQ
&RQILGHQWLDO
WKH*DZNHUSXEOLFDWLRQ
7KHSODLQWLIIZRXOGODWHUDVVHUWSULYLOHJHV
WRDQXPEHURIFRPPXQLFDWLRQVZLWKWKHZLWKWKH
1HZ<RUNSXEOLFLVW$JDLQWKRVHDUHGLUHFWO\
UHVSRQVLYHWRVWDWHPHQWVPDGHWRWKHSXEOLFDQG
PHGLDDSSHDUDQFHV$QGLQVWHDGRIOLVWLQJWKHPLQ
DSULYLOHJHORJRUWKHDVVHUWLQJSULYLOHJHWKH\
WROGWKHFRXUW:HGRQ
WKDYHDQ\GRFXPHQWVDQG
ZHGRQ
WNHHSWKRVHGRFXPHQWVZLWKUHVSHFWWR
PHGLDDSSHDUDQFHUHODWHGGRFXPHQWV
7KDWZDVSDUWLFXODUO\WURXEOLQJEHFDXVHLW
QRZDSSHDUVWKDWVRPHRIWKHFRPPXQLFDWLRQVZHUH
GLUHFWO\ZLWKFRXQVHOZLWK0U+DUGHU$QGWKH\
KDYHQHYHUEHHQSXWRQLQDSULYLOHJHORJLQWKLV
FDVH7KHRQO\WLPHWKH\KDYHEHHQDVVHUWHGDV
EHLQJSULYLOHJHGLVZKHQZHVXESRHQDHGWKRVH
GRFXPHQWVLQ1HZ<RUNDQGWKHSXEOLFLVWQRZ
EHLQJUHSUHVHQWHGE\0U+DUGHU
VILUPDVVHUWHG
WKDWWKH\ZHUHSULYLOHJHG
6RZHKDYHDVLWXDWLRQZKHUHEDFNLQ2FWREHU
ZHKDGDKHDULQJ:HVDLG:KDWDERXWDVVHUWLRQV
RISULYLOHJH"$QGWKLVLVLPSRUWDQWEHFDXVHZH
FRXOGKDYHLIZHKDGLIWKHSULYLOHJHKDGEHHQ
DVVHUWHGZHFRXOGKDYHOLWLJDWHGDQGZHFRXOG
KDYHEHHQOLWHUDOO\EHHQPRQWKVDQGPRQWKVDKHDG
&RQILGHQWLDO
RIZKHUHZHDUHQRZLQOLWLJDWLQJWKHFDVH
$QGWKHQLIZHJREDFNWRWKH-DQXDU\WK
KHDULQJWKHUHLVDTXHVWLRQDVWRWKHRWKHU
IRRWDJHULJKW"6RZHVD\ZHKDYHDZKROH
FROORTX\UHTXHVWZLWK-XGJH&DPSEHOODERXWZKDWWR
GRDERXWZLWKWKLVRWKHUIRRWDJHDQGKRZLWVKRXOG
EHKDQGOHGDQGZKHWKHULWVKRXOGEHSURGXFHG$QG
LVLWUHOHYDQW"
$QGDOOWKURXJKRXWWKLVKHDULQJHYHQWKRXJK
ZKDWZHQRZNQRZDQGZHIRXQGWKLVRXWDIWHU
WKHIDFWWKDWE\WKDWSRLQWWKH\NQHZWKDWWKH
)%,KDGWKUHH'9'VDQGNQHZWKHUHZDVDVWLQJ
RSHUDWLRQDQGVRIRUWK
0U+DUGHURQEHKDOIRIWKHSODLQWLII
UHSHDWHGO\VXJJHVWHGWRWKHFRXUWWKDWKHZDV
XQDZDUHRIDQ\RWKHUIRRWDJH$WRQHSRLQWKH
VD\V,IWKHUHKDSSHQVWREHPRUHYLGHRLIWKHUH
KDSSHQVWREHPRUHIRRWDJH$QGWKLVLVSHUKDSV
WKHEHVWH[DPSOH+HVD\VTXRWH1RZ,WKLQN
ZKDW0U%HUOLQLVVD\LQJLI,XQGHUVWDQGKLP
DQG,GRQ
WHYHQ,
PRSHUDWLQJLQWKHGDUNKHUH
EHFDXVHKH
VWDONLQJDERXWFHUWDLQWKLQJVWKDW
KDSSHQHGRQWKHYLGHRDQG\HWWKH\
YHQHYHU
SURGXFHGDQ\HYLGHQFHRIWKDWWRPHDQGWKLVLV
WKHILUVWWLPH,KDYHHYHUKHDUGRILW
&RQILGHQWLDO
)ROORZLQJWKHKHDULQJDQGWKHHDUOLHU
KHDULQJDWZKLFKWKH\ZHUHRUGHUHGWRSURYLGH
VXSSOHPHQWDOGLVFRYHU\UHODWHGWRWKHVH[XDO
UHODWLRQVKLSEHWZHHQWKHSODLQWLIIDQGWKH
0V&OHPWKH\GLGQ
WLGHQWLI\RUGLVFORVHWKH)%,
GRFXPHQWVHYHQWKRXJKWKH\ZHUHSODLQO\
UHVSRQVLYH7KH\GLGQRWDPHQGWKHLUVZRUQ
LQWHUURJDWRU\DQVZHUV$QGWKHUHLVDQDQVZHULQ
ZKLFK0U%ROOHDVD\VKHGRHVQRWNQRZRIDQ\
RWKHUUHFRUGLQJVWKDWH[LVW(YHQWKRXJKKHNQHZ
IURPKDYLQJSHUVRQDOO\VLJQHGWKHDJUHHPHQW
GHWDLOLQJWKUHHWDSHVKHVD\VKHGRHVQ
WNQRZ
+HGLGQ
WLGHQWLI\LQUHVSRQVHWRDQ
LQWHUURJDWRU\WKHGDWHRIWKHWDSHVHYHQWKRXJK
WKH\
UHGDWHGRQWKHVHGRFXPHQWVHYHQLILW
VDV
WRVD\,
PQRWVXUHRIWKHULJKWGDWHVEXW
KHUH
VVRPHLQIRUPDWLRQDERXWWKHGDWH+HGLG
QRWGLVFORVHWKDWWZRRIWKHWDSHVZHUHODEHOHG
+RRWLH%XEED&OHP
VQLFNQDPHIRU0U%ROOHDDV
ZHODWHUOHDUQHGDW0U&OHP
VGHSRVLWLRQ
$QGWKHQZHKDYHDQRWKHUKHDULQJEHIRUH<RXU
+RQRURQ)HEUXDU\WKDWZKLFKWZRPRWLRQVZHUH
KHDUG$QGZLWKUHVSHFW<RXU+RQRUWKH
PLVUHSUHVHQWDWLRQVFRQWLQXHGHYHQPRUH
VLJQLILFDQWO\DWWKDWSRLQW
&RQILGHQWLDO
)LUVWZHEURXJKWDPRWLRQWRFRPSHODJDLQ
LQIRUPDWLRQUHODWHGWRWKHVH[XDOUHODWLRQVKLS
EHWZHHQ0U%ROOHDDQG0V&OHP$QG0U+DUGHU
UHSUHVHQWHGUHSHDWHGO\WKDWWKH\KDGQRWKLQJHOVH
WRSURYLGH
+HUHLVZKDWKHWROG<RXU+RQRU4XRWH,
GRQ
WNQRZKRZZHFRXOGSURYLGHPRUHLQIRUPDWLRQ
EH\RQGZKDWLVZKDWLVLQ0U%ROOHD
VEUDLQRU
EH\RQGWKHGRFXPHQWVZH
YHDOUHDG\SURGXFHG
$QRWKHURQH4XRWH2XUUHVSRQVHVDUHSUHWW\
PXFKIXOODQGFRPSOHWH,FDQ
WVHHKRZZHFDQ
JLYHDQ\PRUHLQIRUPDWLRQWKDQZH
YHDOUHDG\
JLYHQ4XRWH:H
YHDFWXDOO\EHHQIRUWKFRPLQJ
ZLWKWKHLQIRUPDWLRQZHKDYH
/HVWWKHUHEHQRVXJJHVWLRQWKDWSHUKDSVWKDW
ZDV\RXNQRZDVHULHVRIFDUHOHVVRIIWKHFXII
FRPPHQWVWKHZULWWHQUHVSRQVHZKLFKRQH
REYLRXVO\SUHSDUHVZLWKDOLWWOHPRUHSUHFLVLRQ
DQGWKHH[DFWZRUGLQJVD\VTXRWHWKLVLVWKH
RSSRVLWLRQWRWKDWSRVLWLRQ0U%ROOHDKDV
SURYLGHGDOORIWKHLQIRUPDWLRQWKDW*DZNHUKDV
DVNHGIRULQFOXGLQJDOORIWKHGRFXPHQWVZLWKLQ
KLVSRVVHVVLRQFXVWRG\DQGFRQWUROWKDWIDOO
ZLWKLQ*DZNHU
VGRFXPHQWGHPDQGVDQGDOORIWKH
LQIRUPDWLRQUHTXHVWHGLQ*DZNHU
VLQWHUURJDWRULHV
&RQILGHQWLDO
1RZDV<RXU+RQRUNQRZV\RXGHQLHGWKDW
PRWLRQWRFRPSHODQGKHUHLVZKDW\RXVDLG<RXU
+RQRU4XRWH0U+DUGHU,
PWDNLQJ\RXDW\RXU
ZRUGWKHSODLQWLIIGRHVQRWKDYHDQ\RIWKH
LQIRUPDWLRQ$QGKHUHSUHVHQWHGWKDWKHGRHVQRW
DQGWKDWKHGRHVQ
WKDYHDFFHVVWRLWDQGWKDW
KH
VLQFDSDEOHRIIXUQLVKLQJDQ\RIWKHGLVFRYHU\
\RX
YHUHSUHVHQWHG
<RXU+RQRUWKHQZHQWRQWRDGGZKDWLV
GHVFULEHGDVDYHU\VWURQJFDYHDWQDPHO\,ILW
LVGHWHUPLQHGWKDWKHKDVEHHQOHVVWKDQFDQGLGRU
KRQHVWLQWKHVHSURFHHGLQJVDQGZLWKWKH&RXUW
VDQFWLRQVZRXOGIROORZLQFOXGLQJOLNHO\D
SUHFOXVLRQRUGHU
1RZRQWKDWVDPHGD\RQ)HEUXDU\WKDW
WKH)HEUXDU\WKKHDULQJ<RXU+RQRUKHDUGRXU
PRWLRQWRFRPSHOGLVFRYHU\RQWKUHHDGGLWLRQDO
VHWVRIWKHUHTXHVWV,WKLQNLWWRWDOVDERXW
ILYHUHTXHVWV$QGWKH\VRXJKWWKUHHFDWHJRULHV
RILQIRUPDWLRQRIGRFXPHQWVRQHODZHQIRUFHPHQW
FRPPXQLFDWLRQVWZRWHOHSKRQHUHFRUGVDQG
WKUHHPHGLDDSSHDUDQFHV
1RZLW
VRXUSRVLWLRQWKDWZHKDGDOUHDG\
DVNHGIRUUHTXHVWVWKDWZRXOGKDYHHQFRPSDVVHG
WKLV%XWVRWKDWWKHUHLVQRPLVXQGHUVWDQGLQJ
&RQILGHQWLDO
ZHEURXJKWDVHFRQGVHWRIUHTXHVWV
:LWKUHVSHFWWRWKHODZHQIRUFHPHQWUHFRUGV
%ROOHDDQGKLVFRXQVHODVVHUWHGWKDWWKH
JRYHUQPHQWZDVLQYROYHGLQDQDFWLYH
LQYHVWLJDWLRQDQDFWLYHODZHQIRUFHPHQW
LQYHVWLJDWLRQDQGWKDW*DZNHUZDVDWWHPSWLQJWR
LQWHUIHUHZLWKWKDWLQYHVWLJDWLRQLQZKLFKLWZDV
OLNHO\DWDUJHWRUDVXEMHFW
1RZZH
YHVLQFHXQUDYHOOHGWKDWDQGOHDUQHG
WKDW*DZNHUZDVQRWDWDUJHWRUDVXEMHFW:H
OHDUQHGLQWKHLQYHVWLJDWLRQWKDWWKH\KDGDOUHDG\
PRQWKVEHIRUHGHFOLQHGSURVHFXWLRQDQGWKDWLWZDV
QRWDSUREOHPZLWKWKHJRYHUQPHQWLIHLWKHURI
WKRVHGRFXPHQWVZHUHSURGXFHGRULIDQ\RIWKH
ZLWQHVVHVWKDWZHUHLGHQWLILHGLQWKHGRFXPHQWV
FRXOGEHFRQVXOWHG%XWWKHXSVKRWRILWZDVE\
WHOOLQJ<RXU+RQRUWKDWWKH\ZHUHWU\LQJWRDYRLG
SURGXFLQJWKHVHGRFXPHQWVDQGLQRXUYLHZPDNLQJ
XSDVWRU\WRGRVR
:HWKHQKDYHDVHULHVRIUHODWHGWRWKH)%,
LQYHVWLJDWLRQDQGWKLVKDSSHQHGRYHUVHYHUDO
KHDULQJVEXWOHWPHSDXVHLQWKLVQRZ:HKDYHD
VHULHVRIIOLSIORSVRQZKDWWKLVLQYHVWLJDWLRQLV
DERXW
7KHILUVWWLPHFRPHVXSDWDKHDULQJDIHZ
&RQILGHQWLDO
ZHHNVHDUOLHUDWWKHHQGRI-DQXDU\ZKHUHZHZHUH
WDONLQJDERXWZKHWKHURUQRWWRFRPSHOWKH
SODLQWLIIDQGKLVODZ\HUVWRSURYLGH
DXWKRUL]DWLRQVWRJHWGRFXPHQWVGLUHFWO\IURPWKH
)%,$QGWKH\VDLG,W
VTXRWHSXUHVSHFXODWLRQ
WKDWWKH)%,LQYHVWLJDWLRQLVLQDQ\ZD\UHODWHG
WRWKHFLYLOODZVXLW
$QGWKH\GLGWKDWHYHQWKRXJKWKH\NQHZLW
LQFOXGHGVLJQLILFDQWLQIRUPDWLRQDERXWWKHVH[XDO
UHODWLRQVKLSEHWZHHQ0U%ROOHDDQG0V&OHPWKH
UHFRUGLQJVRIWKRVHHQFRXQWHUVDQGWKH
GLVVHPLQDWLRQRIWKRVHUHFRUGLQJVDOOWRSLFVWKDW
-XGJH&DPSEHOOKDGDOUHDG\GHWHUPLQHGZHUHLQ
IDFWUHOHYDQWWRWKLVODZVXLW
,QDODWHUDIILGDYLWVXEPLWWHGWR
-XGJH&DPSEHOOWKH\UHYHUVHGFRXUVHDQGVDLGWKDW
WKH)%,LQYHVWLJDWLRQIRFXVHGRQTXRWHWKH
VRXUFHDQGGLVWULEXWLRQRIWKHVHFUHWO\UHFRUGHG
VH[WDSHWKDWLVWKHVXEMHFWRIWKLVODZVXLW6R
WKH\DGPLWWKDWLWUHODWHV
$QGWKHQZKHQZHJHWWR$SULODQG,
P
JRLQJWRFRPHEDFNWR$SULOLQDPLQXWHEXWZKHQ
ZHJHWWRWKH$SULOKHDULQJWKH\UHYHUVHFRXUVH
DJDLQDQGWROG-XGJH&DPSEHOOWKDWWKH)%,
GRFXPHQWVZHUHQRWUHOHYDQW6KHRIFRXUVH
&RQILGHQWLDO
GLVDJUHHGDQGRUGHUHGWKHPSURGXFHGDIILUPLQJ
\RXURUGHURQWKDWVXEMHFW%XW,MXVWZDQWHGWR
SDXVHRQWKLVEDFNDQGIRUWKDERXWWKHVH)%,
GRFXPHQWV
7XUQLQJEDFNWRWKH)HEUXDU\WKKHDULQJ
WKHVHFRQGWRSLFZHWRRNXSZDVSODLQWLII
VPHGLD
DSSHDUDQFHVWRGLVFXVVWKHYLGHRWKH*DZNHU
VWRU\$QG0U+DUGHUUHSUHVHQWHGWKDWWKH
SODLQWLIIKDGQRVXFKGRFXPHQWV+HGLGQ
W
GLVFORVHDWWKDWWLPHWKDWKHKDGGRFXPHQWVLQKLV
RZQILOHVWKDWZHUHFRPPXQLFDWLRQVZLWK
SODLQWLII
VSXEOLFUHODWLRQVFRQVXOWDQWLQFOXGLQJ
WKHSUHVVFRQIHUHQFHWKDW0U%ROOHDKDGZLWKKLV
FRXQVHODQQRXQFLQJWKHILOLQJRIWKLVDFWLRQZKHQ
LWZDVILUVWILOHGLQIHGHUDOFRXUW$QG
LQVWHDGDV,PHQWLRQHGHDUOLHUZHOHDUQHGDERXW
WKDWWKURXJKDVXESRHQDWRWKHSXEOLFLVWKHUVHOI
$QGWKHQWKHWKLUGWRSLFDWWKDW)HEUXDU\
KHDULQJZDVWKHWHOHSKRQHUHFRUGVDQG\RXUXOHG
WKDWWKH\QHHGHGWREHSURGXFHG$QGLQVRGRLQJ
ZHKDGDQDUJXPHQWDJDLQDERXWWKHVFRSHRIZKDW
QHHGHGWREHSURGXFHG$QGWKHSODLQWLIIWRRNWKH
SRVLWLRQWKDWWKH\VKRXOGRQO\KDYHWRSURGXFH
WHOHSKRQHUHFRUGVDQGWHOHSKRQHLQIRUPDWLRQ
UHODWHGWRFDOOVZLWKSHRSOHWKDWWKH\GHHPWREH
&RQILGHQWLDO
UHOHYDQWZLWQHVVHVWRWKLVFDVHDQGRWKHUZLVH
WKH\VKRXOGQ
WGRVR
:HRIFRXUVHWRRNWKHSRVLWLRQWKDWWKDW
V
QRWKRZGLVFRYHU\ZRUNVDQGWKDWZHGRQ
W
W\SLFDOO\GRLWEDVHGRQWKHSODLQWLII
GHWHUPLQLQJ\RXNQRZZKDWZLWQHVVHVWKH\WKLQN
DUHUHOHYDQW$QG\RXDJUHHGZLWKXVDQGGLUHFWHG
WKDWWKH\DOOEHSURGXFHGDV<RXU+RQRUNQRZV
7KDWZDVWKHQDIILUPHGE\-XGJH&DPSEHOO
%XWWKDWWKHQEULQJVXVDFRXSOHZHHNVODWHU
WRWKHSODLQWLII
VGHSRVLWLRQZKLFKZHKDGKHUH
LQWKLVURRP$QGZLWKUHVSHFWWKRVH
PLVUHSUHVHQWDWLRQVFRQWLQXHGLQKLVVZRUQ
WHVWLPRQ\)LUVW0U%ROOHDGHQLHGDQ\NQRZOHGJH
RIDQ\RWKHUUHFRUGLQJV6HFRQGKHGHQLHGDQ\
NQRZOHGJHRIWKHGDWHVRIWKHUHFRUGLQJV
+LVWHVWLPRQ\LV,
PQRWJRRGZLWKGDWHV
6RZHVDLG$UHWKHUHGRFXPHQWVWKDWZRXOG
KHOS\RXUHIUHVKRUSLQGRZQZKDWWKHGDWHVRI
WKHVHUHFRUGLQJVZHUH"
$QGKHVDLGWKHUHZHUHQ
WDQ\
7KHQWKHUHZHUHDVHULHVRITXHVWLRQVDERXW
WKH)%,LQYHVWLJDWLRQZKLFKGUHZDEXQFKRI
REMHFWLRQVIURP0U+DUGHUDQGLQVWUXFWLRQVWR
0U%ROOHDWRVD\,I\RXOHDUQHGWKLVLQIRUPDWLRQ
&RQILGHQWLDO
IURP\RXUFRXQVHOLW
VSULYLOHJHG
1RZ<RXU+RQRUZH
YHKDGVRPHRSSRUWXQLW\
WRJREDFNDQGORRNDWWKDWSULYLOHJHTXHVWLRQ
$QGZLWKUHVSHFWZHDFWXDOO\WKLQNWKDWZHKDG
WRGRLWRQWKHIO\EXWZHDFWXDOO\WKLQNWKDW
WKHLQIRUPDWLRQWKDW\RXOHDUQIURP\RXUODZ\HU
IDFWVWKDW\RXOHDUQIURP\RXUODZ\HUDUHLQ
IDFWQRWSULYLOHJHG%XWZH
UHQRWKHUHWRGD\WR
GHEDWHWKDW7KHTXHVWLRQLV,VLWDIDFWXDO
TXHVWLRQ":KHQ0U%ROOHDWHVWLILHGWKDWKH
OHDUQHGWKHVHIDFWVVROHO\IURPKLVODZ\HUZDV
WKDWWUXWKIXO"
$QGZHQRZNQRZIURPWKH)%,GRFXPHQWVDQG
IURPWKHLUVXSSOHPHQWDOVZRUQLQWHUURJDWRU\
DQVZHUVWKDWKHKDGDVHULHVRIPHHWLQJV
SHUVRQDOO\ZLWKWKH)%,LQDGYDQFHRIWKHVWLQJ
RSHUDWLRQWKDWKHKDGDPHHWLQJWKHGD\EHIRUH
WKHVWLQJRSHUDWLRQWKDWKHSHUVRQDOO\
SDUWLFLSDWHGLQWKHVWLQJRSHUDWLRQDQGWKDWKH
SHUVRQDOO\VLJQHGDQDJUHHPHQWWKDWZDVDWWKH
KHDUWRIWKHVWLQJRSHUDWLRQDWWHPSWLQJWRREWDLQ
WKHWDSHVIURP0U'DYLGVRQDQG0U'DYLGVRQ
V
FOLHQW
$QGWKHQGHVSLWH0U+DUGHU
VUHSHDWHG
UHSUHVHQWDWLRQVDFRXSOHZHHNVHDUOLHUDWWKH
&RQILGHQWLDO
KHDULQJWKDWWKH\KDGH[KDXVWLYHO\VHDUFKHGIRU
UHVSRQVLYHUHFRUGVDQGGLGQ
WKDYHDQ\WKLQJHOVH
SODLQWLIIWHVWLILHGDWWKHGHSRVLWLRQWKDWKH
KDGQ
WVHDUFKHGKLVHPDLOWKDWKHKDGQ
W
SUHVHUYHGKLVWH[WVLQFOXGLQJKDYLQJVHQWWKHP
DQGWKHQGHVWUR\HGWKHPVRWKDWZKHQ\RXKLWWKH
ORDGPRUHPHVVDJHVEXWWRQWRVHHLIWKHUHZDV
DQ\WKLQJHOVHZHFRXOGQ
WGRWKDWDQ\PRUHDQG
WKDWKHKDGGLVFDUGHGKLVFDOHQGDUV+HDOVRKDG
QRH[SODQDWLRQZK\WKHPHGLDLWLQHUDU\WKDWZHJRW
OLWHUDOO\WKHGD\EHIRUHWKHGHSRVLWLRQZKLFKRQ
LWVIDFHVKRZVWKDWLWZDVHPDLOHGGLUHFWO\WR
0U%ROOHDMXVWGD\VEHIRUHWKLVODZVXLWEHJDQ
ZDVQ
WSUHVHUYHG
$QG<RXU+RQRUZKHQWKHLVVXHRIWKH1ZRUG
FDPHXSDQGWKLVZDVDW0U&OHP
VGHSRVLWLRQ
ILUVWWKHSODLQWLIIDQGKLVFRXQVHORQFH
DJDLQFRQFHDOHGNQRZOHGJHRIPXOWLSOHWDSHV
VD\LQJ\RXNQRZWKHUHZDVRQO\RQHWDSHIURP
ZKLFKWKHH[FHUSWVZHUHPDGHDQGWKDWWKDWWDSH
GRHVQ
WKDYHDQ\RIWKHODQJXDJHRQLWVRZH
VKRXOGQ
WEHDEOHWRDVNWKHTXHVWLRQVHYHQ
WKRXJKDWWKHWLPHWKH\ZRXOGKDYHNQRZQWKDW
WKHUHZHUH\RXNQRZWUDQVFULSWWKHUHZDVD
WUDQVFULSWRIWZRRWKHUWDSHVZKLFKLQFOXGHGWKLV
&RQILGHQWLDO
ODQJXDJHDQGH[SODLQVWKDW0U&OHP
VSLYRWDO:H
FDQJHWULFKRIIRIWKLVFRPPHQWZDVRQLWVIDFH
QRWDERXWWKHIDFWWKDW0U%ROOHDKDGKDGDQ
DIIDLUZLWK0V&OHPDQGVH[GHSLFWHGRQWKLV
WDSHEXWZDVDERXWKLVXVHRIUDFLVWODQJXDJHRQ
WKHWDSH
$QGWKDWWHVWLPRQ\,
PVRUU\WKDW
LQIRUPDWLRQKDGZHEHHQDEOHWRJHWLWDQGJHWDW
LWZRXOGKDYHVXEVWDQWLDOO\XQGHUFXW0U&OHP
V
WHVWLPRQ\DQGWKHSODLQWLII
VWHVWLPRQ\DERXWZKDW
DJUHDWUROHPRGHOKHLVDQGZKDWDJUHDWIDWKHU
KHLVZKLOHKH
VGHSLFWHGRQWKLVWDSHXVLQJ
UDFLVWODQJXDJHWRWDONDERXWKLVGDXJKWHUDQGKHU
ER\IULHQG
$QG\RXNQRZDV,VDLGPRVWRIWKH
TXHVWLRQRQZKHWKHUWRSURGXFHWKDWGRFXPHQW
ZH
OOUHVHUYHRQLWXQWLOZHJHWWRWKHQH[W
PRWLRQ%XWMXVWLQWHUPVRIEHLQJSDUWRID
SDWWHUQRIQRWEHLQJFDQGLGZLWK<RXU+RQRUDQG
ZLWK-XGJH&DPSEHOO,GRIHHOWKDW,ZDQWHGWR
PHQWLRQWKDW
7KHQZHJHWWR$SULOUG:HKDYHDKHDULQJ
LQIURQWRI-XGJH&DPSEHOOWKHSULPDU\SXUSRVHRI
ZKLFKLVDGLVSRVLWLYHPRWLRQDPRWLRQWRGLVPLVV
E\WKH*DZNHUGHIHQGDQWVEXWZHDOVRWDNHXS
&RQILGHQWLDO
GLVFRYHU\PRWLRQV$QGWKHFRXUW-XGJH&DPSEHOO
DIILUPHG<RXU+RQRU
VUHSRUWDQGUHFRPPHQGDWLRQ
GLUHFWLQJWKHSURGXFWLRQRIWKH)%,UHFRUGV
SURGXFLQJPHGLDDSSHDUDQFHLQIRUPDWLRQSURGXFLQJ
WKHSKRQHUHFRUGVZKLFKUHMHFWVWKHDUJXPHQWWKDW
WKHSKRQHUHFRUGVQHHGWREHOLPLWHGWRMXVW
SHRSOHWKH\MXVWGHHPWREHZLWQHVVHV
$QGWKHQWKHSODLQWLIILQRXUMXGJPHQW<RXU
+RQRUFRQWLQXHVWRWKXPELWVQRVHDWWKRVH
RUGHUV:H
UHQRZWKUHHPRQWKVSDVWWKDWGDWH,
WKLQNLW
VZLWKLQDFRXSOHGD\VVK\RIWKUHH
PRQWKVSDVWWKDWGDWH$QGZHVWLOOGRQ
WKDYH
DOORIWKHGRFXPHQWV:H
UHVWLOOZDLWLQJRQVRPH
SKRQHUHFRUGV$QGWKHSKRQHUHFRUGVWKDWZHGR
KDYHKDYHDOOEHHQUHGDFWHGH[FHSWIRUWZRRU
WKUHHFDOOHUV1RZWKH\ZRXOGWHOO\RX:HOOZH
ILOHGWKHPRWLRQIRUSURWHFWLYHRUGHUZKLFKZH
OO
JHWWRQH[WEXWLQWKHPHDQWLPHWKHUHLVDQ
H[LVWLQJFRXUWRUGHUWKDWKDVQRWEHHQFRPSOLHG
ZLWK
$QGWKHSURWHFWLYHRUGHUPRWLRQUDLVHVDQ
LVVXHZKLFKLVWKLVLQYROYHVWKHSULYDF\RIRWKHU
SHRSOHZKRDUHUHOHYDQWWRWKLVFDVH7KDW
V
DOUHDG\EHHQDGMXGLFDWHGERWKE\\RXDQGE\
-XGJH&DPSEHOO
&RQILGHQWLDO
7KHQH[WWKLQJZHKDYHLVZHKDYHD
VXSSOHPHQWDU\LQWHUURJDWRU\UHVSRQVHDERXWWKH)%,
LQYHVWLJDWLRQDQGFRPPXQLFDWLRQVDERXWWKDW
LQYHVWLJDWLRQ$QGZHKDYHDEXQFKRIZULWWHQ
FRPPXQLFDWLRQVZKLFKVSHDNIRUWKHPVHOYHV%XW
ZHDVNHGIRUWKHRUDOFRPPXQLFDWLRQV$QGZHKDYH
DQLQWHUURJDWRU\UHVSRQVHWKDWVD\V:HOOLQWKLV
PRQWKWKHUHZHUHDSSUR[LPDWHO\WZRRUWKUHH
PRWLRQVDQGLQWKDWPRQWKWKHUHZHUH
DSSUR[LPDWHO\WZRRUWKUHHFRQYHUVDWLRQV$QGWKH
GHVFULSWLRQRIWKHFRQYHUVDWLRQVDOOXVHWKHVDPH
EDVLFERLOHUSODWHODQJXDJHWKDWLWUHODWHVWR
WKHFULPLQDOLQYHVWLJDWLRQEHLQJFRQGXFWHGDQG
GRHVQ
WWHOO\RXDQ\WKLQJDERXWWKHVXEVWDQFHRI
WKHFRQYHUVDWLRQV
$QGZHSUHVVHGRQWKDWLVVXH:HZHUHWROG
WKDWQRQHRIWKHWKUHHODZILUPVLQYROYHG
0U+DUGHU0U7XUNHODQG0U+RXVWRQKDGDQ\
QRWHVRIDQ\RIWKHVHFRQYHUVDWLRQVWREHDEOHWR
JLYHXVDQ\LQIRUPDWLRQDQGWKDWPHPRULHVKDYH
IDGHG
:HOOVRPHRIWKHVHFRQYHUVDWLRQVJREDFNWR
2FWREHURIEXWPDQ\RIWKHVHFRQYHUVDWLRQV
JREDFNWRHDUOLHUWKLV\HDUDQGDUHQRWWKDWROG
$QGZHGRQ
WKDYHDQ\LQIRUPDWLRQDERXWZKDWWKH\
&RQILGHQWLDO
DUHDERXW
7KHQZHVDLG:HOOORRNFDQ\RXSLQGRZQ
KRZPDQ\FRQYHUVDWLRQVWKHUHZHUHE\ORRNLQJDW
\RXUELOOLQJUHFRUGVWRILJXUHRXW\RXNQRZRQ
VXFKDQGVXFKDGDWH,ELOOHGP\FOLHQWIRURU
,UHFRUGHGWLPHLQVRPHIDVKLRQIRU\RXNQRZ
WKUHHWHQWKVRIDQKRXU,WDONHGWR6DUDK
6ZHHQH\DWWKH86$WWRUQH\
VRIILFH$QGZH
GRQ
WKDYHWKDWLQIRUPDWLRQ
$QGWKHQZKDWKDSSHQVLVWKDWZHJHWWKHVH
)%,GRFXPHQWV$QGWKHQWKRVHGRFXPHQWV
HVVHQWLDOO\FRQILUPWKDWZKDWZHKDYHEHHQWROG
IRUPDQ\PRQWKVDQGZKDWPRUHLPSRUWDQWO\ZKDW
\RXKDYHEHHQWROGDQGZKDW-XGJH&DPSEHOOKDV
EHHQWROGZDVLQIDFWQRWFDQGLG
$QGZKDWZHOHDUQHGZDVWKDWWKHUHZHUHDW
OHDVWWKUHHUHFRUGLQJVGHSLFWLQJ0U%ROOHDDQG
0V&OHPKDYLQJVH[XDOUHODWLRQVRQWKUHHVHSDUDWH
LQVWDQFHV:HOHDUQHGWKDWWZRRIWKRVH
UHFRUGLQJVKDYHSUHFLVHGDWHVRQWKHPRI-XO\RI
7ZRRIWKHUHFRUGLQJVZHUHODEHOHG+RRWLH
DQLFNQDPHEHVWRZHGRQ0U%ROOHDE\0U&OHP
WKDWRQRQHRIWKHUHFRUGLQJV0U&OHPWHOOVKLV
ZLIHWKDWWKH\FRXOGTXRWHXQTXRWHUHWLUHRII
WKHWDSHQRWEHFDXVHLWGHSLFWV0U%ROOHDKDYLQJ
&RQILGHQWLDO
VH[EXWEHFDXVHLWGHSLFWVKLPUHSHDWHGO\XVLQJ
UDFLVWODQJXDJHDERXWEODFNSHRSOHLQFOXGLQJ
VSHFLILFSHRSOHWKDW%ROOHDKDGSHUVRQDOO\
SDUWLFLSDWHGLQWKH)%,LQYHVWLJDWLRQLQFOXGLQJD
PHHWLQJGLUHFWO\ZLWK'DYLGVRQKLVFOLHQW
UHSUHVHQWDWLYHWKDWWKH)%,GHFOLQHGSURVHFXWLRQ
DQGWKDWWKHJRYHUQPHQWKDGDFWXDOO\UHWDLQHG
SRVVHVVLRQRIWKHWKUHHYLGHRUHFRUGLQJVRI%ROOHD
KDYLQJVH[XDOUHODWLRQVZLWK0V&OHP
VSHFLILFDOO\LQFRQQHFWLRQZLWKWKLVFDVH
$QG,ZRXOGVD\<RXU+RQRUWKDWWKH
WDNHQWRJHWKHUWKDWVHULHVRIIDFWVWKDWZHOHDUQ
QRZ,PHDQ,ORRNEDFNDWDOORIWKHZRUNWKDW
RXUZKROHWHDPKDVGRQHWU\LQJWRXQUDYHO
IDFWXDOO\ZKDWKDSSHQHGKHUHDQGWKLQNWRP\VHOI
,I,KDGNQRZQWKLVEDFNLQ2FWREHURU1RYHPEHU
ZKHQ-XGJH&DPSEHOORUGHUHGLWZHZRXOGKDYH
VDYHG,FDQ
WWHOO\RXKRZPXFKHQHUJ\DQG
HIIRUWWU\LQJWRSUHSDUHWKLVFDVHDQGPRYHLW
IRUZDUG
$QGZHGRQ
WWKLQNWKDW\RXNQRZZKHUH
GRHVWKDWOHDYHXV",IDSDUW\KDVDGLVDJUHHPHQW
DERXWWKHVFRSHRIGLVFRYHU\RUZKHWKHUGRFXPHQWV
ZHUHSULYLOHJHGWKHSURSHUWKLQJWRGRLVWR
UDLVHWKHLVVXHKDYHLWDGMXGLFDWHGDQGXQOHVV
&RQILGHQWLDO
\RXDSSHDOWRDELGHE\WKHUXOLQJ
+HUHZKDWZHKDYHLQVWHDGLVWKDWZHKDYHWKH
SODLQWLIIDQGKLVFRXQVHOWKDWFOHDUO\ZDQWHGWR
DYRLGSURGXFLQJWKHVHGRFXPHQWV$QG,
PQRWDQ
LGLRW,XQGHUVWDQGZK\WKH\ZDQWHGWRDYRLG
SURGXFLQJWKHP%XWWKHVHGRFXPHQWVZHUHDOUHDG\
DGMXGLFDWHGWREHUHOHYDQWDQGWKH\KDGDFRXSOH
RISDJHVWKDWWKH\WKRXJKWZHUHVHQVLWLYH
$QGWKH\FRXOGKDYHFRQIURQWHGWKDWLVVXH
KHDGRQD\HDUDJR7KH\FRXOGKDYHDGGUHVVHGLW
ZLWKDQDWWRUQH\
VH\HVSURYLVRZKLFKLVZKDWZH
QRZKDYHLQSODFHRULQVRPHRWKHUZD\%XWZKDW
\RXGRQ
WJHWWRGR<RXU+RQRULVWROLWLJDWH
WKHVFRSHRIWKHGLVFRYHU\ORVHWKHQGHFLGHIRU
\RXUVHOIWKDW\RX
UHVLPSO\QRWJRLQJWRFRPSO\
QRWJRLQJWRSURYLGHWKHLQIRUPDWLRQ\RXKDYHQRW
JRLQJWRSURGXFHGRFXPHQWV\RXKDYHQRWJRLQJWR
DVVHUWDSULYLOHJHDVWRWKRVHGRFXPHQWVDQG
PRUHLPSRUWDQWO\\RXGRQ
WJHWWRPDNHVWDWHPHQW
DIWHUVWDWHPHQWDQGUHSUHVHQWDWLRQDIWHU
UHSUHVHQWDWLRQWRWKHMXGLFLDORIILFHUZKRLV
SUHVLGLQJRYHUWKHFDVHLQDQHIIRUWWRFRQFHDO
LQIRUPDWLRQDQGGRFXPHQWVWKDW\RX
YHDOUHDG\EHHQ
RUGHUHGWRSURGXFH7KDW
VSODLQDQGVLPSOHD
YLRODWLRQRIWKHFRUHSULQFLSOHVRIWKH
&RQILGHQWLDO
DGYHUVDULDOSURFHVVDQGEODWDQWFRQWHPSWIRUWKH
&RXUW
VDXWKRULW\SODLQDQGVLPSOH
1RZWKDWEULQJVXV,WKLQNWRWKHLUWKH
SODLQWLII
VRSSRVLWLRQSDSHUV$QG,
PPRVWO\
JRLQJWRIRFXVRQWKHVHFRQGVHW7KHILUVWVHW
UHDOO\\RXNQRZWKHILUVWVHWIRFXVHVRQ\RX
NQRZWKDWWKH$SULOUGRUGHUZDVHQWHUHG\RX
NQRZZLWKRXWDQRSSRUWXQLW\WRUHYLHZWKHWKLQJ
DWWKHODVWPLQXWH$QGWKDW
VMXVWGHPRQVWUDEO\
ZURQJ$QGLW
VDOLWWOHELWRIDVRUWLQP\
MXGJPHQWOLNHDGRJDWHP\KRPHZRUNVRUWRI
WDOHWKDWZHGLGQRWNQRZ7KHUHLVDQRUGHULQ
SODFHEXW\RXKDYHWRFRPSO\ZLWKWKHRUGHUDV
EHVW\RXFDQ6R,
PJRLQJWRIRFXVRQWKHELJJHU
SLFWXUHVWXIILI,FDQ
$QG,WKLQNWKDWWKHDUJXPHQWVWKDWWKH\KDYH
PDGHUHDOO\EUHDNGRZQLQWRIRXUDUJXPHQWV$QG,
ZLOOVRUWRIDGGUHVVWKHPDQGWKHQ,ZLOOVWRS
DQGUHVHUYHIRUUHEXWWDO
)LUVWWKHUHLVZKDW,ZRXOGOLNHWRFDOOWKH
EREDQGZHDYH7KH\VD\:HOOZHGLGQ
WNQRZ
WKHUHZHUHRWKHUWDSHVEHFDXVHZHKDGQ
WVHHQ
WKHPULJKW"
:HOOWKH\MXVWGHFLGHGQRWWRGLVFORVHDQ\
RIWKHLQIRUPDWLRQWKDWWKH\GLGKDYH,ZRXOG
&RQILGHQWLDO
UHVSHFWIXOO\VXJJHVW<RXU+RQRUWKDWLI\RXKDYH
LQIRUPDWLRQLQFOXGLQJGRFXPHQWVIURPDQ)%,
LQYHVWLJDWLRQWKDW\RX
YHJRQHEDFNDQGIRUWK
RYHUZLWKIRUPRQWKVWKDWWKHDSSURSULDWH
UHVSRQVHLI\RXZDQWWRVD\,KDYHQRWVHHQWKH
WDSHVWKHQ\RXVD\LQVWHDGRIVD\LQJ,GRQ
W
NQRZDQ\WKLQJ\RXVD\RU,
PQRWDZDUHRIDQ\
RWKHUWDSHV\RXVD\,KDYHQ
WVHHQDQ\RWKHU
WDSHVRWKHUWKDQWKHRQH*DZNHUVXSSOLHGEXW,
XQGHUVWDQGIURPGRFXPHQWV,KDYHVHHQWKDWWKHUH
PD\EHRWKHUV7KDW
VDWUXWKIXOUHVSRQVH
7KDW
VDFDQGLGUHVSRQVH7KDW
VDUHVSRQVHWKDW
ZKHQ<RXU+RQRUVD\V+DYH\RXWROGPHKDYH\RX
WROGWKHPHYHU\WKLQJ\RXFDQWKDW
VZKDW\RX
ZRXOGVD\
$QGLQVWHDGWKHSODLQWLIIDQGKLVFRXQVHO
FRQFHDOHGWKDWLQIRUPDWLRQE\VHOHFWLYHO\GHFLGLQJ
ZKDWWKH\NQHZDQGZKDWWKH\GLGQ
WNQRZ$QG,
ZRXOGVXVSHFW,ZRXOGVXEPLW<RXU+RQRUWKDW
WKDW
VUHDOO\TXLWHWURXEOLQJ
7KHVHFRQGWKLQJWKDWZHVHHLQWKHUHVSRQVH
LVZKDW,ZRXOGOLNHWRFDOOWKHVFDUHFURZOLNH
WKHVFDUHFURZLQWKH:L]DUGRI2]7KHVFDUHFURZ
LVSRLQWLQJLQDOOGLIIHUHQWGLUHFWLRQVULJKW"
6RWKH\VD\WKDWWKH\DUHH[FXVHGIURPWKLQJV
&RQILGHQWLDO
OLNHFKDQJLQJWKHGDWHVRIWKHHQFRXQWHUVWKUHH
WLPHVIURPWRWRILUVWEHFDXVH
WKH\XVHWKHZRUGLQDQGDERXWEXWWKH\EXW
WKHUHDOLW\LV<RXU+RQRUWKDWWKH\LJQRUHWKDW
WKH\RIIHUHGWZRGHWDLOHGH[SODQDWLRQVWRWKH
FRXUWRQHWR-XGJH&DPSEHOODERXWWKHILUVW
FKDQJHIURPWRDQGWKHQRQHWR\RX
<RXU+RQRUIURPEDFNWRERWKRIZKLFK
OHDYHRXWWKHIDFWWKDWWKH\DFWXDOO\KDYH
GRFXPHQWVWKDWSLQWKLVGRZQDQGWKDWWKH\FRXOG
KDYHFRQVXOWHGDQGVKRXOGKDYHFRQVXOWHG
6RWKDWEULQJVXVWRWKHGRFXPHQWV$QGVR
WKH\VD\:HOOWKH\KDYHDQDIILGDYLWWKDWWKH\
KDYHVXEPLWWHGIURP0U+RXVWRQZKRLV
XQIRUWXQDWHO\QRWKHUH%XWWKHJLVWLV
HVVHQWLDOO\WRVD\,0U+RXVWRQZDVGHDOLQJ
ZLWKWKH)%,DQG0U+DUGHUDQG0U7XUNHOUHDOO\
GLGQRWNQRZDQ\WKLQJDERXWWKHVHXQWLOWKHUHZDV
DVSHFLILFUHTXHVWRIWKH)%,GRFXPHQWVLQ
'HFHPEHURI
$QG,ZRXOGUHVSHFWIXOO\VXJJHVWWKDWWKDW
V
DSUREOHPIRUEDVLFDOO\WKUHHUHDVRQV
)LUVW0U+RXVWRQZDVFRXQVHORIUHFRUGLQ
WKLVFDVHVWDUWLQJLQ$SULORIVRWKHQRWLRQ
WKDWZHFDQWKDWZHFDQEHH[FXVHGIURP
&RQILGHQWLDO
SURYLGLQJNH\LQIRUPDWLRQE\VD\LQJ:HOORQHVHW
RIODZ\HUVNQHZLWEXWWKHRWKHURQHVGLGQ
WLV
UHDOO\QRWULJKWDQGLW
VQRWIDLUWRXVDVWKH
GHIHQGDQWVWU\LQJWRGHIHQGWKHFDVH
7KHVHFRQGLVWKDW0U+DUGHUKLPVHOI
DFFRUGLQJWRWKHLQWHUURJDWRU\DQVZHUWKDWZH
YH
VLQFHJRWWHQSHUVRQDOO\VSRNHZLWKWKH)%,DERXW
WKHLQYHVWLJDWLRQLQ-DQXDU\RIDWDPLQLPXP
EHIRUHKHUHSUHVHQWHGWR<RXU+RQRUWKDWKHKDG
QRWKLQJHOVHWRSURYLGHLQ)HEUXDU\
$QGODVWO\0U%ROOHDWKHDFWXDOSDUW\
SHUVRQDOO\SDUWLFLSDWHGLQPHHWLQJVVLJQLQJ
DJUHHPHQWVLQDVWLQJRSHUDWLRQDOOEHIRUH*DZNHU
ZDVHYHQQDPHGDGHIHQGDQWLQWKLVFDVH$QGVR
WKHQRWLRQWKDWWKLVLVVRPHKRZH[FXVHGEHFDXVH
0U+RXVWRQZDVWKHRUHWLFDOO\WKHRQO\SHUVRQZKR
NQHZDERXWLWMXVWGRHVQ
WVHHPULJKW
$QGWKHQWKHWKLUGDUJXPHQWWKDWWKH\PDNHLV
WKDWWKH\DQGWKLVLVSHUKDSVWRPHWKHRQH
WKDW
VWKHPRVWUHPDUNDEOH7KH\VD\WKHUHVKRXOG
EHQRVDQFWLRQVEHFDXVHDOORIWKLVVWXIILV
FROODWHUDODQGLW
VQRWUHOHYDQWWRWKHLVVXHVLQ
WKHFDVH:HOO<RXU+RQRUZLWKUHVSHFWWKDW
VKLSKDVVDLOHG7KHFRXUWKDVDOUHDG\GHWHUPLQHG
WKDWWKHVHWKLQJVDUHQRWFROODWHUDODQGWKDWWKH\
&RQILGHQWLDO
DUHUHOHYDQW
:H
YHOLWLJDWHGWKDWLVVXHUHSHDWHGO\DQG
WKHFRXUWKDVGHWHUPLQHGWKDWWKHVH[XDO
UHODWLRQVKLSEHWZHHQ0U%ROOHDDQG+HDWKHU&OHP
DOORILWQRWMXVWWKLVRQHHQFRXQWHURUWKLVRQH
WDSHDUHUHOHYDQWWKDWRWKHUYLGHRUHFRUGLQJV
DUHUHOHYDQWWKDWWKH)%,LQYHVWLJDWLRQLV
UHOHYDQWWKDWSODLQWLII
VPHGLDDSSHDUDQFHVDUH
UHOHYDQW,QIDFWWKH'&$UHOLHGRQWKHPLQLWV
RSLQLRQ7KHSODLQWLII
VWHOHSKRQHUHFRUGVDOO
RIWKHPQRWMXVWWKHRQHVWKDWWKH\GHWHUPLQHDUH
UHOHYDQWDUHUHOHYDQW
$QG\RXGRQ
WJHWWRGLVUHJDUGDVHULHVRI
FRXUWRUGHUVFRQFHDOHYLGHQFHPLVUHSUHVHQW
WKLQJVWRWKHFRXUWDQGWKHQZKHQ\RXJHWFDOOHG
RQLWWRVD\:HOOLWWXUQVRXWWKDWWKHWKLQJV
WKDWWKH\DUHFRPSODLQLQJDERXWDUHQ
WUHDOO\
PDWHULDOWRWKHFDVHWKDWWKH\
UHQRWUHDOO\
UHOHYDQWWKDWWKH\
UHFROODWHUDOWKDWWKH\
UH
QRWDGPLVVLEOH
:H
UHQRWKHUHKDYLQJDFRQYHUVDWLRQDWWULDO
DERXWZKHWKHUWKHVHWKLQJVZHUHDGPLVVLEOHZH
UH
KDYLQJDFRQYHUVDWLRQDERXWGLVFRYHU\DQGZKHWKHU
ZKHQ\RX
UH\RXNQRZSXUVXLQJWKLQJVWKDWPD\EH
OLNHO\WROHDGWRWKHGLVFRYHU\RIDGPLVVLEOH
&RQILGHQWLDO
HYLGHQFHWKDWWKHVHWKLQJVDUHGLVFRYHUDEOH
$QGWKHQILQDOO\WKHSODLQWLIIFKDOOHQJHV
WKHVDQFWLRQVWKDW*DZNHUDQG0U%ROOHDZHUH
VHHNLQJDVEHLQJRXWRISURSRUWLRQWRWKHFRQGXFW
WKDW
VDWLVVXH6R,ZRXOGOLNHWRDGGUHVV
WKRVH
:HOOWKHILUVWWKLQJWKDWKDSSHQVLVWKDW
ZKHQ\RXUHDGWKHRSSRVLWLRQSDSHUVWKH\EUHDN
WKHPGRZQLQWRWKHLQGLYLGXDOSLHFHVDQGVD\
:HOOWKLVLVDVPDOOYLRODWLRQ$QG\RXNQRZ
<RXU+RQRU,WKLQNLIDQ\RQHRIWKHVHWKLQJVKDG
KDSSHQHGZHSUREDEO\ZRXOGKDYHMXVWWULHGWR
ZRUNWKLVRXW%XWOLNHZKHQ\RXZKHQ\RX
UHDOL]HWKDWHYHU\WKLQJ\RX
YHGRQHIRUD
QLQHPRQWKSHULRGKDVEDVLFDOO\\RXNQRZEHHQ
DUWLILFLDOO\QDUURZHGEHFDXVH\RXUDGYHUVDU\
KDVQ
WJLYHQ\RXLQIRUPDWLRQ\RXWDNHWKHPDOO
DOWRJHWKHU7KHSRLQWWKDWWKLVLVQRWWKDW
VLJQLILFDQW,WKLQNLVUHDOO\QRWZHOOWDNHQ
$QGVROHWPHWDONDERXWWKHVDQFWLRQV
WKHPVHOYHV:H
YHDVNHGIRUWKHFDVHWREH
GLVPLVVHGDQGZHUHDOL]H\RXNQRZ,KDYHUHDG
WKHFDVHVDQG,
PVXUH<RXU+RQRULVIDPLOLDU
ZLWKWKHFDVHVWKDWWKDWLVREYLRXVO\WKH
PRVWH[WUHPHVDQFWLRQWKDWZHFRXOGDVNIRU$QG
&RQILGHQWLDO
LI\RXUHDGWKHFDVHVWKHFDVHVPDNHFOHDUDQG
WKH\GUDZDOLQH
7KH\VD\/RRNLILW
VIRRWGUDJJLQJRULI
LW
VVRUWRIQRUPDOPXVVDQGIXVVRIGLVFRYHU\RI
FRXUVH\RXVKRXOGQ
WGLVPLVVWKHFDVH$QG,
ZRXOGUHVSHFWIXOO\VXEPLW<RXU+RQRUWKDWWKDW
V
QRWZKDWZHKDYHKHUH,QWKHFDVHVWKDWWKH\
KDYHFLWHGPRVWRIWKHFDVHVLQYROYHRQHRUGHU
QRWDVHULHVRIRUGHUV+HUHZHKDYHDVHULHVRI
RUGHUV
6RPHRIWKHFDVHVLQYROYHWKLQJVWKDWDUH
LPSUHFLVHHLWKHUEHFDXVHWKH\
UHRUDOUXOLQJV
DQGKHUHZHKDYHDVHULHVRIZULWWHQUXOLQJVRU
EHFDXVHWKHUHLVDJHQHUDORUGHUWKDWVD\V,ZDQW
\RXWRMXVWFRPSO\ZLWKDOORIWKHGLVFRYHU\
UHTXHVWV$QGWKDW
VQRWZKDWZHKDYHKHUH+HUH
ZHKDYHDVHULHVRIRUGHUVWKDWDGGUHVVVSHFLILF
WRSLFVVD\LQJ'LVFRYHU\RQWKLVWRSLFLVSURSHU
$QGLI\RXORRNDWWKRVHFDVHVWKRVHFDVHV
LQFOXGLQJDFRXSOHRIWKHFDVHVZKHUHWKHUHLV
DFWXDOO\DQDIILUPDQFHRIWKHGLVPLVVDORUGHURI
FRQGXFWWKDW
VDORWOHVVHJUHJLRXVWKDQZKDWZH
KDYHMXVWGHVFULEHGLWVD\V/RRNZKHUHWKHUHLV
DTXRWHUHIXVDOWRREH\DVRSSRVHGWRMXVWQRW
IROORZLQJWKHFRXUW
VRUGHUWKURXJKHLWKHUVRPH
&RQILGHQWLDO
LQDGYHUWHQFHRUURXWLQHGHOD\WKDWZHGRQ
WOLNH
WRVHHEXWUHDOL]HKDSSHQVWKDWWKDWLVHQRXJKWR
GLVPLVVWKHFDVH
$QG\RXNQRZLQUHVSRQVHWRWKDW
0U%ROOHDDQG0U+DUGHUDFWLQJRQKLVEHKDOI
VD\V/RRNKHKDVDOHJLWLPDWHLQYDVLRQRI
SULYDF\FODLPKHUH+HKDVDFRQVWLWXWLRQDOGXH
SURFHVVULJKWWRSUHVVWKDWFODLPDQGVRIRUWK
DQGVRRQ
$QGORRNZKDWHYHUWKHIDFWXDODQGOHJDO
PHULWVRI0U%ROOHD
VFODLPVLW
VQRWWKHFDVH
WKDWKH
VDEVROYHGIURPSOD\LQJE\WKHUXOHVMXVW
EHFDXVHKHWKLQNVKHKDVDYDOLGFODLPDQG
VXIIHUHGDQLQMXU\<RXVWLOOKDYHWRSOD\E\WKH
UXOHV$QGZKHQ\RXGRQ
WGRLWDQG\RXGRQ
WGR
LWWRWKLVH[WHQWGLVPLVVDOLVSURSHU
$QGZHUHDOO\ZRXOGVWURQJO\XUJHWKH&RXUW
DQG<RXU+RQRUWRGRWKDWKHUHEHFDXVHWKLV
DQG,ZLOOMXVWVD\ORRN,KDYHEHHQSUDFWLFLQJ
ODZWKHEHWWHUSDUWRI\HDUVDQGLQP\
H[SHULHQFH,KDYHQRW,KDYHEHHQLQDFDVH
ZKHUHWKHUHKDVEHHQKDUGIRXJKWLVVXHVOLNHWKLV
FDVHEXW,KDYHQHYHUEHHQLQDFDVHZKHUHNH\
IDFWVKDYHEHHQFRQFHDOHGDQGPLVUHSUHVHQWHGWR
WKLVH[WHQW$QG,KDYHWRVD\LW
VMXVWYHU\
&RQILGHQWLDO
WURXEOLQJ
6RWKDWZH
UHQRWJRLQJEDFNDQGIRUWKEDFN
DQGIRUWKOHWPHWU\WRDGGUHVVWKHDOWHUQDWLYH
VDQFWLRQVWKDWZH
YHDOVRDVNHGIRU$QG,GR
WKDWZLWKRXWLQWHQGLQJWRVXJJHVWWR\RXWKDW
GLVPLVVDOLVLQDQ\ZD\LPSURSHUEHFDXVHZH
UHDOO\WKLQNWKDW
VWKHDSSURSULDWHUHVSRQVH
,IWKHFDVHLVQRWGLVPLVVHGKHUHLVZKDWZH
WKLQNVKRXOGKDSSHQ)LUVWWKLVRQHLVD
QREUDLQHUEXW0U%ROOHDVKRXOGEHUHTXLUHGWR
SURPSWO\SURYLGHIXOODQGFRPSOHWHUHVSRQVHV,
WKLQNLQRXUSDSHUVZHDVNIRUILYHGD\V,
PQRW
ZHGGHGWRWKHSHULRGEXWWKHQRWLRQWKDWZHDUH
VWLOOQRWKDYLQJFRPSOHWHUHVSRQVHVLVQRWULJKW
6HFRQG*DZNHUVKRXOGEHDEOHWRUHFDOO
0U%ROOHDDQG0U&OHPIRUDGGLWLRQDOGHSRVLWLRQ
WHVWLPRQ\EHFDXVHZHZHUHEDVLFDOO\DVNLQJWKHP
TXHVWLRQVDQGXQDEOHWRH[DPLQHWKHPSURSHUO\
EDVHGRQZKDWZHZHUHQRWWROG
$QGLI0U&OHPDQGKLVODZ\HU0U'LDFR
REMHFWWREHLQJUHFDOOHGEHFDXVHRIWKHH[SHQVH
LQYROYHGLIWKHUHLVDQH[SHQVH0U%ROOHD
VKRXOGEHUHTXLUHGWRUHLPEXUVHKLVUHDVRQDEOH
H[SHQVHV,W
VQRWRXUPRQH\EXWZHUHDOL]HWKDW
FRXOGEHDQLVVXH
&RQILGHQWLDO
7KLUGZHWKLQNWKDWWKHFRQGXFWWKDWZH
YH
GHVFULEHGKHUHGLVSOD\VDQRQJRLQJFRQWHPSWIRU
WKHFRXUWDQGLWVRUGHUV-XVWWRXVHWKHPRVW
UHFHQWH[DPSOHDIWHUWKH&RXUWZHOODIWHU
<RXU+RQRUUHMHFWHGWKHSODLQWLII
VDUJXPHQWWKDW
KHFRXOGEHDEOHWRFXOOKLVSKRQHUHFRUGVDIWHU
WKH&RXUWWKHQUHMHFWHGWKDWDUJXPHQWKH
EDVLFDOO\KDVUHIXVHGWRFRPSO\DQGZHDUHVWLOO
JHWWLQJUHFRUGVWKDWDUHLQHIIHFWPHDQLQJOHVV
EHFDXVHWKH\KDYHQRWJLYHQWKHLQIRUPDWLRQWKDW
V
EHHQGLUHFWHG
7KDW
VDEODWDQWGLVUHJDUGRIDFRXUWRUGHU
DQGZHWKLQNWKDWWKHUHVKRXOGEHDILQGLQJRI
FRQWHPSW,WGRHVQ
WQHFHVVDULO\PHDQDQ\WKLQJ
:H
UHQRWDVNLQJIRUDGDLO\VDQFWLRQRUDQ\WKLQJ
OLNHWKDWZH
UHMXVWDVNLQJIRUDILQGLQJWKDW
WKHFRQGXFWERWKSDVWDQGFXUUHQWLVGLVSOD\LQJ
DFRQWHPSWRIFRXUW
)RXUWKZHZRXOGUHTXHVWWKDWWKH&RXUWJLYH
DQDGYHUVHLQIHUHQFHLQVWUXFWLRQWRWKHMXU\ZLWK
UHVSHFWWRWKHFDWHJRULHVRIGRFXPHQWVWKDW%ROOHD
DQGKLVFRXQVHOIDLOHGWRSUHVHUYH7KLVLQFOXGHV
KLVWH[WVKLVHPDLOKLVFDOHQGDUVDQGWKH
VXEVWDQFHRIKLVDQGKLVFRXQVHORU
VRUDO
FRPPXQLFDWLRQVZLWKODZHQIRUFHPHQWRIILFLDOV
&RQILGHQWLDO
05+$5'(56HWKZLOO\RXPLQGUHSHDWLQJ
ZKDW\RXMXVWVDLG",PLVVHGWKHILUVWIHZZRUGV
RILW,
PVRUU\WRLQWHUUXSW
05%(5/,1:HZRXOG,ZLOOMXVWGRWKH
ZKROHWKLQJ
:HZRXOGUHTXHVWWKDWWKH&RXUWJLYHDQ
DGYHUVHLQIHUHQFHLQVWUXFWLRQZLWKUHVSHFWWRHDFK
FDWHJRU\RIGRFXPHQWVWKDW0U%ROOHDDQGKLV
FRXQVHOIDLOHGWRSUHVHUYH7KLVLQFOXGHVKLV
WH[WVKLVHPDLOKLVFDOHQGDUVDQGWKH
VXEVWDQFHRIKLVDQGKLVFRXQVHO
VRUDO
FRPPXQLFDWLRQVZLWKWKHODZHQIRUFHPHQWRIILFLDOV
7KHVHDUHGRFXPHQWVDQGLQIRUPDWLRQWKDWZH
VKRXOGKDYHDQGZHGRQ
WKDYH$QGWKHSURSHU
UHPHG\IRUWKDW,WKLQNLW
VEHHQZHOO
HVWDEOLVKHGLQWKHFDVHVLVWKDWWKHSDUW\
IDLOVWRSUHVHUYHWKDWLQIRUPDWLRQ\RX
UH
HQWLWOHGWRGUDZDQDGYHUVHLQIHUHQFHIURPWKDW
)LIWKDVDVDQFWLRQIRULPSURSHUO\
FRQFHDOLQJGRFXPHQWVDQGLQIRUPDWLRQZHZRXOGDVN
IRUDSUHFOXVLRQRUGHU1RZLQDFDVHD
SUHFOXVLRQRUGHUOLPLWVWKHVFRSHRIZKDWWKHMXU\
KHDUV<RX
UHSUHFOXGHGIURPEULQJLQJXSFHUWDLQ
WKLQJVULJKW"$QGLQVRGRLQJLWVRUWRI
DUWLILFLDOO\WUXQFDWHVWKHWUXWK$QGWKLVFDVH
&RQILGHQWLDO
LVDOLWWOHELWRGGEHFDXVHZKDW
VUHDOO\JRLQJ
RQKHUHLVWKDWWKHSODLQWLIIWKURXJKKLV
GLVFRYHU\FRQGXFWKDVDUWLILFLDOO\WULHGWR
WUXQFDWHWKHWUXWK$QGWKHGHIHQGDQWLVWU\LQJ
WRKDYHWKHIXOOWUXWKFRPHLQ
6RIRUH[DPSOHZKHQWKHSODLQWLIIVD\V
ZKLFKLVDWDOHWKDWKH
VWROGSXEOLFO\PDQ\
WLPHVWKDW\RXNQRZLQDPRPHQWRIZHDNQHVV
KHJDYHLQWR0U&OHPDQG0UV&OHPDQGKDGVH[
ZLWK0UV&OHP$QGLQIDFWZHQRZNQRZWKDW
WKDWKDSSHQHGIRXUWLPHV,WPDNHVLWDOLWWOH
OHVVEHOLHYDEOHWKDWLWZDVVRUWRILQMXVWRQH
PRPHQWRIZHDNQHVV
6RZKDWZH
UHDVNLQJIRULVVRUWRIZKDW,
G
OLNHWRGHVFULEHDVDUHYHUVHSUHFOXVLRQRUGHU
ZKLFKLVWRVD\LQVWHDGRIVD\LQJWKDWWKHIDFWV
ZRXOGEHDUWLILFLDOO\WUXQFDWHGWKDWLQVWHDG
0U%ROOHDZRXOGEHSUHFOXGHGIURPDUJXLQJWKDW
WKHWKLQJVWKDWKHFRQFHDOHGGLGQRWKDSSHQ
$QGORRNZKHQZHZHUHKHUHLQ)HEUXDU\
EHIRUH<RXU+RQRU\RXKDGLQGLFDWHGWKDWLILW
WXUQHGRXWWKDWWKHSODLQWLIIKDGEHHQTXRWH
OHVVWKDQFDQGLGZLWKWKH&RXUWZKLFKLVFOHDUO\
WKHFDVHDSUHFOXVLRQRUGHUZRXOGLVVXH$QGZH
WKRXJKWDORWDERXWZKDWWKDWVKRXOGEH$QGZH
&RQILGHQWLDO
WKLQNWKDWWKHDSSURSULDWHWKLQJZRXOGEHD
SUHFOXVLRQWKDWHVVHQWLDOO\SUHFOXGHVKLPIURP
EHQHILWWLQJIURPFRQFHDOLQJWKHVHWKLQJVE\WKHQ
EHLQJDEOHWRDUJXHWKDWWKH\GRQ
WFRPHLQRU
WKDWWKH\DUHWKH\
UHQRWULJKW
6R\RXNQRZKHDOOHJHVLQKLVFRPSODLQW
WKDWKHKDGDSDUWLFXODUSXEOLFSHUVRQD%XWWKHQ
KHZDQWVSXEOLFVWDWHPHQWVWKDWKH
VPDGHWREH
SURKLELWHGDQGWRFRQFHDOKLVSXEOLFUHODWLRQV
HIIRUWVWKHWKLQJ,PHQWLRQHGDERXWVXFFXPELQJWR
0U&OHPDQG0UV&OHPLQDPRPHQWRIZHDNQHVV
6RWKLVLVVRWKHWKLQJVWKDWZH
UH
WDONLQJDERXWWKDWZHZRXOGEH\RXNQRZWKDW
SUHFOXGHGIURPDUJXLQJDJDLQVWLVWKDWWKHUHZHUH
IRXUHQFRXQWHUVWKDWWKH)%,KDVWKUHHWDSHV
WKDWWKHUHZDVDQDOOHJHGH[WRUWLRQDWWHPSWDQGDQ
)%,VWLQJRSHUDWLRQZKLFKLVREYLRXVO\DERXW
ZKHWKHUWKLVLVQHZVZRUWK\DQGZKRJDYHWKLVWDSH
WR*DZNHUDQGVRIRUWK$QGWKDW
VEHFDXVHZH
GRQ
WWKLQNWKDWWKHSODLQWLIIVKRXOGEHUHZDUGHG
IRUKDYLQJFRQFHDOHGWKDWLQIRUPDWLRQIRUD\HDU
DQGWKHQPLVUHSUHVHQWHGLWWR\RXDQGWR
-XGJH&DPSEHOO$QGWKDWVHHPVOLNHWKHSURSHU
NLQGRISUHFOXVLRQRUGHU
$QGIRUZKDWLW
VZRUWK<RXU+RQRU*DZNHU
&RQILGHQWLDO
IRUZKDWHYHUHYHU\RQHWKLQNVDERXWLWLV
UHDOO\LW
VDERXWLW
VDERXWWKHWUXWK$QG
VR\RXNQRZSDUWRIWKLVLVFRQVLVWHQWZLWKZKDW
*DZNHULVDERXWZKLFKLVWRVD\/RRNWKHWUXWK
LVVRPHWLPHVHPEDUUDVVLQJVRPHWLPHVLW
V
XQFRPIRUWDEOHVRPHWLPHVLW
VXQSOHDVDQW%XWLI
ZH
UHJRLQJWRKDYHDWULDOZHVKRXOGQ
WKDYHD
WULDOZKHUHWKHYHUVLRQRIZKDW
VJRLQJRQLVVRPH
DUWLILFLDOO\WUXQFDWHGVWRU\$QGVRWKDWLV,
WKLQNDNH\SLHFHRIWKLV
$QGWKHQODVW,ZDQWWRVD\WKDW
XQUDYHOOLQJWKLVPLVFRQGXFWKDGSUHMXGLFHG*DZNHU
DQGWKHRWKHUGHIHQGDQWVLQDYHU\UHDOLQD
YHU\DGGLWLRQDOUHDOZD\*DZNHUKDVLQFXUUHG
VXEVWDQWLDOVXPVRYHUWKHODVW\HDUWU\LQJWR
XQUDYHODOORIWKLVOLWLJDWLQJPRWLRQDIWHU
PRWLRQDIWHUPRWLRQVHHNLQJWRHQIRUFHFRXUW
RUGHUVWU\LQJWROHDUQWKHIDFWVZKHQWKH
SODLQWLIIDQGKLVFRXQVHOKDGWKHPDOODORQJEXW
FRQFHDOHGWKHPSUHSDULQJIRUDQGWDNLQJ
GHSRVLWLRQVRI0U&OHPDQG0U%ROOHDZLWKRXW
LQIRUPDWLRQWKDWZRXOGKDYHEHHQGLUHFWO\UHOHYDQW
WRWKHTXHVWLRQVZHZHUHDVNLQJDQGWKHWHVWLPRQ\
ZHZHUHJHWWLQJDQGWKHQ\RXNQRZFODLPLQJ
SULYLOHJHVDVWRLQIRUPDWLRQDWWKHGHSRVLWLRQ
&RQILGHQWLDO
ZKHQ0U%ROOHDNQHZLWGLUHFWO\HYHQWKRXJKWKH\
VDLGLWZDVRQO\WKURXJKFRXQVHO
1RZORRNZKLOHWKHUHLVFHUWDLQO\VRPH
DPRXQWRIDEQRUPDOGLVFRYHU\WXVVOLQJLQDQ
DYHUDJHFDVHDQG,
PIDPLOLDUZLWKDOORIWKDW
WKDWKDSSHQVLQPDQ\FDVHV,GRQ
WWKLQNWKDW
WKLVLVWKHQRUPDOFDVH$QGDVDUHVXOW*DZNHU
UHTXHVWVWKDWWKH&RXUWDZDUGWKHUHDVRQDEOHIHHV
DQGFRVWVDWWULEXWHGWRSODLQWLII
VDQGKLV
FRXQVHO
VPLVFRQGXFWRYHUWKHSDVW\HDU
$QGHYHQWKHSODLQWLII
VVXSSOHPHQWDO
RSSRVLWLRQDOWKRXJKWKH\ZRXOGVD\LWVKRXOGEH
PRGHVWDSSHDUVWRFRQFHGHWKDWWKDWPLJKWEH
MXVWLILHGDWOHDVWLQSDUW$QGLI<RXU+RQRU
ZRXOGILQGWKDWZHDUHHQWLWOHGWRVXFKDQDZDUG
DQGSHUKDSVZHZRXOGWKHQUHTXHVWWKDWZHVXEPLWD
VWDWHPHQWRIWKRVHIHHVDQGFRVWV$QGLIWKHUH
DUHSDUWLFXODUDQ\SDUWLFXODUJXLGDQFHDERXW
WKHNLQGVRIWKLQJV\RXWKLQNVKRXOGDQGVKRXOG
QRWEHLQFOXGHGLQWKDWZHZRXOGZHZRXOGGR
WKDW
$WWKHHQGRIWKHGD\<RXU+RQRUWKLVLV
QRWRQHRUHYHQWZRRUHYHQWKUHHLVRODWHG
LQFLGHQWVEXWLQVWHDGZHWKLQNUHIOHFWVD
SHUVLVWHQWSDWWHUQRIFRQFHDOLQJHYLGHQFH
&RQILGHQWLDO
IDEULFDWLQJUHDVRQVIRUGRLQJVRDQGLQPDNLQJ
UHSHDWHGPLVUHSUHVHQWDWLRQVWR\RXDQGWR
-XGJH&DPSEHOODQGDOWKRXJKOHVVLPSRUWDQWDOVR
WRXV$QGWKLVFRQGXFWWRXVVWULNHVDWWKH
KHDUWRIWKHDGYHUVDULDOSURFHVVDQGZHWKLQNLW
VKRXOGEHGHDOWZLWKDFFRUGLQJO\
7KDQN\RX
-8'*(&$6($OOULJKW7KDQN\RX
05+$5'(57KDQN\RX-XGJH&DVHIRU
KDYLQJWKLVKHDULQJ
7KHUHLVVRPXFKWKDW
VQRWWUXHDERXWZKDW
0U%HUOLQMXVWVDLG,GRQ
WNQRZZKHUHWREHJLQ
7KHUHLVVRPXFKKDOIWUXWKDQGPLVUHSUHVHQWDWLRQ
WR\RXVLUWKDWLW
VWUHPHQGRXV$QG,EHOLHYH
WKDWWKLVZKROHSURFHHGLQJLVDZDVWHRIRXU
UHVRXUFHVEHFDXVHVRPXFKRILWLVWXUQLQJWKH
IDFWVRQWKHLUKHDG
:KDWDORWRIWKLVERLOVGRZQWRLV
FRPPXQLFDWLRQVZLWKODZHQIRUFHPHQW0U%HUOLQ
V
SUHPLVHLVWKDWWKRVHFRPPXQLFDWLRQVZHUHDVNHG
IRUDQGFRQFHDOHGWKDWWKHUHZDVDFRXUWRUGHU
DQGWKDWZHUHIXVHGWKHFRXUWRUGHU$QGQRQHRI
WKDWLVWKHFDVH
:HZHUHILUVWDVNHGIRU)%,FRPPXQLFDWLRQV
ZKHQWKH\SURSRXQGHGGLVFRYHU\DVNLQJIRU)%,
&RQILGHQWLDO
FRPPXQLFDWLRQ$QGZHLPPHGLDWHO\SURYLGHGWKHP
ZLWKDSULYLOHJHORJDVWRWKRVHFRPPXQLFDWLRQV
:HKDGDKHDULQJEHIRUH<RXU+RQRUDERXWWKRVH
FRPPXQLFDWLRQVZKLFKZDVRQ,
PWU\LQJWR
UHPHPEHUWKHGDWHRIWKHKHDULQJ,WZDVSDUWRI
WKHLU)HEUXDU\DQG)HEUXDU\PRWLRQV,
WKLQNLWZDVPD\EHODWH)HEUXDU\RUHDUO\0DUFK
$QG<RXU+RQRUUXOHGWKDW\RXUUHFRPPHQGDWLRQ
ZDVWKDWZHKDGWRSURYLGH)%,FRPPXQLFDWLRQV:H
WRRNWKHLVVXHWR-XGJH&DPSEHOODQGZHDJUHHG
ZLWK<RXU+RQRUDQGZHSURPSWO\SURGXFHGWKH)%,
FRPPXQLFDWLRQV:HGLGQRWFRQFHDOWKHP:H
SURGXFHGWKHP:HUHGDFWHGRXWILYHZRUGVDQG
WKH\UHSHDWHGDIHZWLPHV7KH\ZHUHORFDWHGRQ
WKUHHSDJHVWZRSDJHVIURPRQHVRXUFHDQGRQH
SDJHIURPDQRWKHUVRXUFH
:H
YHSURGXFHGRYHUSDJHVRIGRFXPHQWV
LQWKLVFDVHVRUHGDFWLQJRXWILYHZRUGVDQG
WKHVHDUHZRUGV<RXU+RQRUWKH\DUHUDFLDO
ZRUGVDQG<RXU+RQRUKDGSUHYLRXVO\UXOHGWKDW
WKH\ZHUHRIIOLPLWVLQWKHFDVH
%XWWKHSRLQWLVWKDWZHGLGQRWFRQFHDO
WKDW7KH\KDGQHYHUDVNHGIRUWKRVHGRFXPHQWV
EHIRUH2QHRIWKHGRFXPHQWVWKDWWKH\
YH
SUHVHQWHGLQWKHUHPRWLRQZDVLI,KDYHLWKHUH
&RQILGHQWLDO
LWZDVDVWRU\IURP70=IURP2FWREHURI
2FWREHUWK+XON+RJDQFRQWDFWV)%,RYHU
OHDNHGVH[WDSH7KLVLVIURP,WKLQNLW
VWKH
GD\EHIRUHWKLVODZVXLWZDVILOHGRQHGD\EHIRUH
,WZDVSXEOLFLQIRUPDWLRQWKDWZHZHUHVHHNLQJ)%,
DVVLVWDQFHZLWKWKLV7KH\GLGQ
WHYHUSURSRXQG
GLVFRYHU\DERXWWKLV)%,LQYHVWLJDWLRQXQWLODERXW
VL[PRQWKVDJR,WKLQNPD\EHLWZDVULJKWEHIRUH
&KULVWPDV'HFHPEHUWK,PD\KDYHP\GDWHV
VOLJKWO\RII
7KDW
VZKDWSURPSWHGXVWRSURYLGHD
SULYLOHJHORJDQGWRUHVLVWWKDWGLVFRYHU\<RXU
+RQRUKHDUGLW<RXUXOHGZLWKWKHP:HWRRNLW
WR-XGJH&DPSEHOO6KHDJUHHGZLWK\RX$QGZH
SURPSWO\SURGXFHGWKH)%,FRPPXQLFDWLRQV(YHU\
)%,DQG$86$FRPPXQLFDWLRQWKDWZHKDGZH
SURGXFHGWRWKHP7KHUHZDVQRFRQFHDOPHQWQRQH
7KHSUHPLVHLVWKH\WKLQNWKDWWKH\DVNHGIRU
WKHVH)%,FRPPXQLFDWLRQVD\HDUDJRDQGWKH\
GLGQ
W$QGWKH\KDYHQ
WSUHVHQWHGWR\RX
DQ\WKLQJDERXWWKDWWRVKRZWKDWWKH\DVNHGIRULW
EHIRUHWKH\UHDOO\DVNHGIRULW
7KH\NHHSVD\LQJRYHUDQGRYHUDJDLQWKDW
-XGJH&DPSEHOOPDGHDUXOLQJRQ2FWREHUWK
FRPSHOOLQJXVWRSURGXFH)%,FRPPXQLFDWLRQV
&RQILGHQWLDO
7KDW
VQRWWUXH/RRNDWWKH)HEUXDU\
DFWXDOO\VKHSXWLWLQWRZULWLQJ,WKLQNLQ
0DUFKDQGLW
VEHHQSURGXFHGLQWKHFDVHDVSDUW
RIWKHUHFRUGVKHUH
7DNHDORRNDW-XGJH&DPSEHOO
VUXOLQJRQ
WKDW,WGRHVQ
WVD\DQ\ZKHUHWKDWZHDUH
FRPSHOOHGWRGRDQ\WKLQJH[FHSWWZRWKLQJV:H
UH
FRPSHOOHGWRSURYLGHDIXUWKHUUHVSRQVHWR
LQWHUURJDWRU\1RZKLFKZHGLGSURPSWO\DIWHU
VKHVDLGRQ2FWREHUWKWKDWZHKDGWR$QGWKH
VHFRQGWKLQJZDVWKDWZHZHUHUHTXLUHGWRSURGXFH
DSULYLOHJHORJDVWRFRPPXQLFDWLRQVSUHFHGLQJWKH
ILOLQJRIWKLVODZVXLWZLWKWKHLPSOLFDWLRQWKDW
WKHSULYLOHJHORJZRXOGDSSO\WRUHVSRQVLYH
GRFXPHQWVWKDWKDYHEHHQDVNHGRIXV
7KH$86$DQG)%,FRPPXQLFDWLRQVKDGQHYHU
EHHQDVNHGRIXVDVRI2FWREHU7KHUHZDV
QRWKLQJWRSXWRQDSULYLOHJHORJ$QGDOORI
WKRVHFRPPXQLFDWLRQVZHUHDIWHUWKHILOLQJRIWKLV
ODZVXLWLQDQ\HYHQW6R,MXVWZDQWHGWR
DGGUHVVWKDWLVVXH
0U%HUOLQVD\VWKDWZHKDYHGLVUHJDUGHG
FRXUWRUGHUV7KHUHLVQRWDVLQJOHFRXUWRUGHU
WKDWZHKDYHGLVUHJDUGHG
:KHQKHWDONVDERXWKRZZHZHUHRUGHUHGWR
&RQILGHQWLDO
SURGXFHSKRQHUHFRUGVZHKDYHSURGXFHGDOOWKH
SKRQHUHFRUGVH[FHSWIRUWKHWKUHHGLJLWVRIWKH
SUHIL[VRWKH\KDYHDVWRQRQSDUWLHVDQG
QRQZLWQHVVHVEHFDXVHQRQSDUWLHVDQGQRQZLWQHVVHV
KDYHDSULYDF\ULJKWLQWKHVWDWHRI)ORULGD
7KH\KDYHDSULYDF\ULJKWWKDWWKHLUSKRQH
FRPPXQLFDWLRQVVKRXOGQRWEHGLVFORVHG
1HYHUWKHOHVVZHGLVFORVHGLWH[FHSWIRUD
WKUHHGLJLWSUHIL[DQGZHKDYHEURXJKWDPRWLRQ
IRUSURWHFWLYHRUGHUZLWK<RXU+RQRUDVWRWKDW
,I\RXUXOHDJDLQVWXVZHZLOOSURYLGH\RX
ZH
OOSURYLGHWKHPZLWKDOOWKHSUHIL[HV,
EHOLHYHLW
VDQLQYDVLRQRIWKHSULYDF\RI
QRQSDUWLHVDQGQRQZLWQHVVHV,DOVREHOLHYHWKDW
LWLVDUHDVRQDEOHPLGGOHJURXQGVRWKDWWKH\FDQ
VHHDOORIWKHSKRQHFDOOVWKDWZHUHPDGHWRRU
IURP0U%ROOHDXVLQJWKHDUHDFRGHDQGWKHODVW
IRXUGLJLWV
$QGLIWKHDUHDFRGHDQGWKHODVWIRXUGLJLWV
PDWFKHVXSZLWKDQ\RQHZKRWKH\GHWHUPLQHWREHD
ZLWQHVV,ZLOOEHKDSS\WRLPPHGLDWHO\XQUHGDFW
WKHSUHIL[VRWKH\ZLOOKDYHWKDWIXOO
LQIRUPDWLRQ,W
VEHHQDERXWDPRQWKQRZ7KH\
KDYHQRWLGHQWLILHGDVLQJOHSKRQHFDOORID
UHGDFWHGSUHIL[ZKHUHWKH\VD\WKLVLVDZLWQHVV
&RQILGHQWLDO
%XW,ZLOOJHWWRWKDWZKHQZHJHWWRWKHPRWLRQ
IRUSURWHFWLYHRUGHU
,GRQRWEHOLHYHWKDWLVGLVUHJDUGLQJDFRXUW
RUGHU,EHOLHYHWKDWWKDWLVSURWHFWLQJWKH
SULYDF\ULJKWVRISHRSOHZKRDUHQRWSDUWLHVDQG
QRWZLWQHVVHV$QGZHEURXJKWDPRWLRQ,I<RXU
+RQRUGLVDJUHHVZLWKXVZHZLOOEHKDSS\WR
FRPSO\ZLWKWKHRUGHU%XW,IHHOWKDW,KDYHWR
GRP\MREWRXSKROG)ORULGD
VSULYDF\ODZVDVWR
QRQSDUWLHVDQGQRQZLWQHVVHV
0U%ROOHD,
PVRUU\0U%HUOLQVDLG
RYHUDQGRYHUDJDLQFRQFHDOHGHYLGHQFHFRQFHDOHG
HYLGHQFHFRQFHDOHGHYLGHQFH:HKDYHQRW
FRQFHDOHGDQ\WKLQJ:KHQWKH\JDYHXVDGRFXPHQW
UHTXHVWRUDUHTXHVWIRULQIRUPDWLRQZHSURYLGHG
LW$QGZKHQ-XGJH&DPSEHOOWKHRQHWLPHVKH
FRPSHOOHGVKHFRPSHOOHGDIXUWKHUUHVSRQVHWR
LQWHUURJDWRU\DQGZHSURYLGHGLW
$QGZKHQ<RXU+RQRUVDLGZHKDGWRSURYLGH
FHUWDLQLQIRUPDWLRQDQG-XGJH&DPSEHOOHQWHUHGWKH
RUGHUZHSURYLGHGLW:KDW
VLQWHUHVWLQJLVWKDW
0U%HUOLQGLGQRWSXWXSDQRUGHUSRLQWWRDQ
RUGHUDQGVD\+HUHLVWKHRUGHULWVD\VZHKDYH
WRGR;<DQG=DQGZHQHYHUGLGLWEHFDXVHWKDW
GRHVQ
WH[LVW7KDWVFHQDULRGRHVQ
WH[LVW
&RQILGHQWLDO
7KHUHLVDORWRIKDOIWUXWKKHUH7KHUHLV
ORWRILQQXHQGR7KHUHLVDORWRIWKLQJVWKDW
MXVWDUHQ
WDFFXUDWH$QG,ZLOOJRWKURXJKLW
7KHVHDUHMXVWVRPHSUHOLPLQDU\WKLQJVKHUH
+HUHLVMXVWDQH[DPSOH0U%HUOLQVDLG
7KHVWLQJRSHUDWLRQDOOKDSSHQHGEHIRUH*DZNHUZDV
DQDPHGGHIHQGDQWLQWKLVFDVH<RXKHDUGKLP
*DZNHUZDVQDPHGLQDODZVXLWWKDWZDVDIHGHUDO
FRXUWFDVHDQGZHHQGHGXSGLVPLVVLQJWKHPDWWHU
WKHIHGHUDOFRXUWFDVHDQGWKDWVDPHGD\QDPLQJ
WKHPDVDSDUW\WRWKHVWDWHFRXUWFDVHEHFDXVH
WKHUHZHUHWZRDFWLRQVWKDWZHUHSHQGLQJ
7KHVWLQJRSHUDWLRQKDSSHQHGDIWHU*DZNHUKDG
EHHQDQDPHGGHIHQGDQWLQWKHVDPHH[DFWFDXVHVRI
DFWLRQ6RIRUKLPWRVD\$OORIWKLVKDSSHQHG
EHIRUH*DZNHUZDVHYHUQDPHGLQWKHFDVHWKDW
V
MXVWDKDOIWUXWK$QGWKHUHLVVRPDQ\H[DPSOHV
RIWKDW
$OORIWKHH[DPSOHVDERXWKRZZHVXSSRVHGO\
IODXQWHGFRXUWRUGHUVZH
YHQHYHUIODXQWHGD
FRXUWRUGHU$OORIWKHGLVFRYHU\WKDWKH
V
WDONLQJDERXWZDVZKHQWKH\DVNHGIRULW$QG
ZKHQLWZDVRUGHUHGZHJDYHLW$QGQRZ,
P
JRLQJWRJRWKURXJKVRPHDGGLWLRQDOWKLQJVKHUH
2QHRIWKHWKLQJVWKHILUVWWKLQJ,ZDQW
&RQILGHQWLDO
WRSRLQWRXWLVWKHVLPLODULW\RIWKLVPRWLRQZLWK
WKHLU)HEUXDU\WKPRWLRQ7KH\EURXJKWDPRWLRQ
WRFRPSHOFRPSOLDQFHZLWKWKH&RXUW
V2FWREHU
RUGHUDQGIRUVDQFWLRQV<RXU+RQRUKHDUGLWDQG
<RXU+RQRUGHQLHGLW7KHWKLQJVWKDWDUHLQ
WKHLUPRWLRQQRZLW
VDORWRIWKHVDPHVWXII
WKDWZDVLQWKDWSULRUPRWLRQWKDW\RXGHQLHG,W
ZDVWKLQJVWKDW:HQHYHUJRWWKHGDWHULJKW:H
LQLWLDOO\VDLGWKDWWKHVH[XDOHQFRXQWHUVKDSSHQHG
LQRUDERXWDQGWKHQODWHUZHVDLGLQRU
DERXWDQGWKHQODWHURQZHVDLGPLG
7KH\DOUHDG\EURXJKWDPRWLRQIRUVDQFWLRQV
RQWKDW,WZDVGHQLHG7KHUHLVQRUHDVRQIRU
VDQFWLRQVIRUVRPHWKLQJOLNHWKDW,IVRPHERG\
PDNHVDQHVWLPDWHDQGWKHQWKH\UHYLVHWKHLU
HVWLPDWH\RXGRQ
WVDQFWLRQWKHPEHFDXVHWKH\
UHYLVHGWKHLUHVWLPDWH$QGLWZDVFHUWDLQO\QRW
FRQFHDOLQJDQ\WKLQJ:HGLGQRWKDYHWKHGDWHV
TXLWHULJKW:HGLGQRWKDYHUHFRUGVDERXWWKH
GDWHV
+HWDONVDERXWDOHWWHUIURPWKH$86$ZKLFK
LGHQWLILHGFRPPXQLFDWLRQVWKDWFDPHIURPDQ
H[WRUWLRQLVW+HWDONVDERXWKRZWKHUHH[LVWV
FHUWDLQRWKHUWDSHV,KDYHQHYHUVHHQDQ\RI
WKRVHWDSHV7KH\KDYHQHYHUVHHQDQ\RIWKRVH
&RQILGHQWLDO
WDSHV0U%ROOHDKDVQHYHUVHHQDQ\RIWKRVH
WDSHV1RERG\RQHLWKHUVLGHRIWKLVWDEOHRU
<RXU+RQRURU-XGJH&DPSEHOOKDVHYHUVHHQDQ\RI
WKHVHVXSSRVHGWDSHV:HGRQ
WNQRZLIWKH\H[LVW
RUQRW1RERG\KDVVHHQWKHP0D\EHWKH\H[LVW
DQGPD\EHWKH\GRQ
W
$QH[WRUWLRQLVWVDLGWKH\H[LVWDQ
H[WRUWLRQLVWZKRZDQWHGPRQH\DQGZDQWHGWRPDNH
FHUWDLQUHSUHVHQWDWLRQVRIZKDWZDVLQWKH
VXSSRVHGWDSHVWKDWWKHUHLVUDFLDOFRPPHQWV
WKDWWKHUHLVDOONLQGVRIRWKHUFRPPHQWVLQ
WKHUHQRERG\KDVVHHQDQ\RIWKHVHWKLQJV
%XW\HW0U%HUOLQVD\VWKHVHWDSHH[LVW+H
WROG\RXWKDWDERXWWHQWLPHV7KHVHWDSHVH[LVW
DQG,FRQFHDOHGWKDW1RERG\KDVVHHQWKHP,
KDYHQ
WFRQFHDOHGDQ\WKLQJ,GRQ
WNQRZLIWKH\
H[LVW:KHQKHDVNHGIRUFRPPXQLFDWLRQVZLWKWKH
)%,ZHSURGXFHGLW7KRVHFRPPXQLFDWLRQVKDGLQ
WKHUHFRPPXQLFDWLRQVIURPDQH[WRUWLRQLVWVD\LQJ
7KHVHDUHWKHWKHVHWDSHVH[LVWDQGWKHVHDUH
ZKDW
VRQWKHP:HSURGXFHGWKHP7KH\KDYHLW
,WKLQNWKHRQO\SRWHQWLDOSUHMXGLFHKHUHLV
WKDWLW
VQRWHYHQDSUHMXGLFH,IWKH\KDG
ZDQWHGWKH)%,FRPPXQLFDWLRQVVRRQHUWKH\NQHZ
WKDWZHZHUHWDONLQJWRWKH)%,7KH\ZDLWHGD
&RQILGHQWLDO
\HDUDQGIRXUPRQWKVWRDVNIRUWKH)%,
FRPPXQLFDWLRQV$QGWKHQZHKDGVRPHSURFHHGLQJV
WKDWODVWHGPD\EHWZRRUWKUHHPRQWKV
-XGJH&DPSEHOOVDLG<RXKDYHWRWXUQLWRYHUDQG
ZHWXUQHGLWRYHU1RWKLQJZDVFRQFHDOHGWKRXJK
$JDLQEDFNWRP\SRLQWWKLVPRWLRQKDVD
ZKROHORWRIVWXIILQLWWKDWLVDPLUURULPDJHRI
WKHODVWRIWKHLU)HEUXDU\PRWLRQWRFRPSHO
FRPSOLDQFHZLWKWKH2FWREHURUGHUDQGIRU
VDQFWLRQV$QG\RXGHQLHGWKDW$QGIRUWKHVDPH
UHDVRQVRIDOOWKHVDPHWKLQJVWKDWZHUHLQWKDW
PRWLRQ\RXVKRXOGGHQ\WKLVPRWLRQDVZHOOMXVW
RXWULJKWEHFDXVHLW
VMXVWDUHKDVKRIDORWRI
WKHVDPHWKLQJV
7KHRQO\WKLQJLW
VQRWDUHKDVKRILVZKHQ
\RXKDGDKHDULQJRQWKDWPRWLRQWRFRPSHO
FRPSOLDQFHZLWKWKH&RXUW
VRUGHUDQGIRU
VDQFWLRQVWKDWVDPHGD\\RXKDGDKHDULQJRQ
WKHLUPRWLRQWRFRPSHOXVWRSURGXFHWKH)%,
GRFXPHQWV8OWLPDWHO\ZHIXOO\FRPSOLHGZLWK
WKDWZLWKWKHH[FHSWLRQRIUHGDFWLQJRXWILYH
ZRUGVWKDWZHUHLUUHOHYDQWDQGLQIODPPDWRU\DQG
KDYHDOUHDG\EHHQUXOHGXSRQ2WKHUZLVHZHKDYH
IXOO\FRPSOLHG
7KHUHKDVEHHQQRFRQFHDOPHQW7KHUHKDV
&RQILGHQWLDO
EHHQQRPLVFRQGXFW$QG,ZLOOJRWKURXJKVRPH
RWKHUWKLQJV,
PKDSS\WRDQVZHUTXHVWLRQVDW
WKHHQGRIP\SUHVHQWDWLRQDVZHOOLQFDVH,PD\
KDYHPLVVHGVRPHWKLQJWKDW<RXU+RQRUWKDW\RX
WKLQNLVZRUWK\RIIXUWKHUGLVFXVVLRQ
:KDW*DZNHUGRHVRYHUDQGRYHUDJDLQLVWKH\
OLNHWRZDLWXQWLOWKHODVWVHFRQGWRKLWXVZLWK
VWXII6RZKHQWKH\EURXJKWWKLVPRWLRQLWGLG
QRWKDYHDQ\VSHFLILFVLQLWDWDOO7KH\ILOHG
DQRSSRVLWLRQDQGWKHQWKH\ORZHUHGWKHERRPDQG
WKH\KDGWKLVWUHPHQGRXVO\JLJDQWLFUHSO\WKDW
ZHQWRQDQGRQDQGRQDQGRQKRSLQJWKDWZHZRXOG
EHXQDEOHWRUHVSRQGWRLWH[FHSWKHUH$QGZH
KDGWRDVNIRUPRUHWLPHDQGZHJRWPRUHWLPH,
WKLQNWKDW0U%HUOLQHYHQVDLG,I\RXZDQWPRUH
WDNHWDNHPRUHWLPH7KDW
VMXVWQRWWKHULJKW
ZD\RIGRLQJWKLQJV$QGWKHFRXUWVKDYHVDLG
WKDWRYHUDQGRYHUDJDLQ
:HFLWHGWRWZRFDVHVRQHWKDWVD\VLW
VD
GXHSURFHVVYLRODWLRQWRFRQVLGHUDUJXPHQWVUDLVHG
IRUWKHILUVWWLPHLQDUHSO\EULHI:HOODOPRVW
HYHU\WKLQJWKDWKHWDONHGDERXWWRGD\ZDVLQWKH
UHSO\EULHI,WZDVQRWLQWKHLUPRWLRQ
$QGDQRWKHUFDVHVD\V$QDUJXPHQWUDLVHGIRU
WKHILUVWWLPHLQUHSO\LVGHHPHGDEDQGRQHG
&RQILGHQWLDO
$OPRVWHYHU\WKLQJWKDWWKH\UDLVHGZDVLQWKH
UHSO\,NQRZWKDWWKLVLVDSURFHGXUDOLVVXH
EXWVWLOO,WKLQNLW
VLPSURSHUWRILOHD
PRWLRQJHWRXURSSRVLWLRQDQGWKHQORZHUWKH
ERRPLQWKHUHSO\DQGWKHQZHKDYHWRILOH\HW
DQRWKHURSSRVLWLRQRQWRSRIWKDW
,W
VSDUWRIDQRQJRLQJSUDFWLFH7KH\KDYH
GRQHLWRYHUDQGRYHUWRXV:KHQWKH\DVNHGIRU
WKHSKRQHUHFRUGVWKH\ZDLWHGXQWLOWKHLUUHSO\
WRFLWHWRWKHODZ7KH\FLWHGWRWZRFDVHVWKDW
ZHUHFRPSOHWHO\RIISRLQWDQGLWZDVILOHGRQWKH
VDPHGD\DVWKHKHDULQJDQGZHFRXOGQ
WUHVSRQG
WRLW$QGLWWXUQVRXWWKDWWKHUHZDVDORWRI
WKHODZWKDWZDVFRPSOHWHO\WKHRSSRVLWHRIZKDW
WKH\KDGVDLG%XWDJDLQLWZDVLWZDV
UHVSRQGLQJWRWKLQJVRQUHSO\
$QG,WKLQNLW
VZRUWKPHQWLRQLQJWKDWZKHQ
0U%ROOHDZDVGHSRVHGWKH\KHOGEDFNRQDERXW
GLIIHUHQWGRFXPHQWVWKDWZHUHUHVSRQVLYHWR
GLVFRYHU\$QG\RXUHPHPEHUZHEURXJKWRXURZQ
PRWLRQIRUVDQFWLRQVRQWKLV7KH\KDGKHOGEDFN
RQGLIIHUHQWRUPD\EHWKHUHZHUHPRUH
GRFXPHQWVWKDWZHUHSHUFHQWUHVSRQVLYHDQGZH
KDGDGLDORJXHEHIRUH$OLD6PLWK"
05%(55<$OLD
&RQILGHQWLDO
05+$5'(5$OLD6PLWK,NHHS
PLVSURQRXQFLQJKHUQDPH
,KDGFRPPXQLFDWLRQVZLWKKHU,VDLGVKH
VDLG:HOOZHGRQ
WZDQWWRSURGXFHGRFXPHQWV
XQWLODIWHUWKHGHSRVLWLRQ
,VDLG7KDW
VILQHEXWLI\RX
UHJRLQJWR
JLYHVRPHWKLQJDWWKHGHSRVLWLRQ\RXQHHGWRJLYH
LWWRXVQRZVRWKDWZHFDQXVHLWWRSUHSDUHIRU
WKHGHSRVLWLRQ
6KHVDLG:HGRQ
WDJUHHZLWKWKDW
$QGVRWKH\SURFHHGHGWRWDNHKLVGHSRVLWLRQ
VKRZDZKROHEXQFKRIVWXIIZDVUHVSRQVLYHWR
RXUGLVFRYHU\,WZDVGRFXPHQWVWKDWSHUWDLQHGWR
+XON+RJDQGRFXPHQWVWKDWSHUWDLQHGWRPHGLD
DSSHDUDQFHV,PHDQDOOWKHVHWKLQJVZHUH
SHUFHQWUHVSRQVLYH7KH\KHOGEDFN7KH\
VXUSULVHGKLP7KH\VDERWDJHGKLPDWKLV
GHSRVLWLRQ$QGLWZDVHPEDUUDVVLQJ,W
VWKLQJV
OLNHKLPJRLQJWRWKHEDWKURRPLQWKHKRVSLWDO,
DVVXPH\RXUHPHPEHUVRPHRIWKHVHWKLQJV
-8'*(&$6(,GR
05+$5'(57KHUHZDVDORWRIWKHPWKRXJK
DORWRIWKHVHWKLQJVIURPWKHP7KH\VDERWDJHG
XV6RKHUHWKH\NHHSWDONLQJDERXWKRZZH
FRQFHDOHYLGHQFHWKDWZHGLVUHJDUGFRXUWRUGHUV
&RQILGHQWLDO
WKDWZHHQJDJHLQPLVFRQGXFW,PHDQWKDWZDVDQ
RXWULJKWVDERWDJHRIXV$QGLW
VMXVWLW
VD
ELWWZRIDFHGIRUWKHPWREHVD\LQJWKHWKLQJV
WKH\DUHVD\LQJZKLFKDUHWRWDO
PLVUHSUHVHQWDWLRQVDQGWREHHQJDJHGLQWKH
FRQGXFWWKDWWKH\ZHUHHQJDJHGLQ
7KHUHZHUHDFWXDOO\RWKHUH[DPSOHVWKRXJK
:HDVNHGIRUGRFXPHQWVDERXWWKHLULQWHUQDO
FRPPXQLFDWLRQVUHJDUGLQJWKHVH[WDSHWKHVH[
WDSHWKDWWKH\SRVWHG1RWLFHWKDWHYHU\WKLQJ
WKH\WDONHGDERXWKDGQRWKLQJWRGRZLWKWKHLUVH[
WDSHLW
VRWKHUWDSHVWKDWPD\RUPD\QRWH[LVW
,W
VVRIDUDILHOGZKDWWKH\
UHWDONLQJDERXW
%XWZHDVNHGIRUWKHFRPPXQLFDWLRQVLQGLVFRYHU\
WKHLULQWHUQDOFRPPXQLFDWLRQVDQGH[WHUQDO
FRPPXQLFDWLRQVUHJDUGLQJWKHDFWXDOVH[WDSH
7KH\ZLWKKHOGWKDWIURPXVIRUHLJKWPRQWKV:H
WRRNWKHLUGHSRVLWLRQ
<HVSDJHVRIWKH,0VEHWZHHQDOORI\RXU
HPSOR\HHVPDNLQJIXQRI+XON+RJDQ7KH\ZLWKKHOG
WKDWIURPXVIRUHLJKWPRQWKV$QGLWZDVQRW
ZHGLGQ
WHYHQDQGWKH\FRQFHDOHGLWIURPXV
LI\RXZDQWWRXVHWKDWWHUPWKDW0U%HUOLQORYHV
WRXVHEHFDXVHWKH\QHYHUWROGXVDERXWWKRVH
WKLQJVXQWLOZHZHUHWDNLQJGHSRVLWLRQVDQGWKHLU
&RQILGHQWLDO
HPSOR\HHVVDLGWKDWWKH\KDGLQWHUQDO
FRPPXQLFDWLRQV$QGWKH\KDGDVSHFLILFWHUPIRU
LW
7KH\HYHQWXDOO\SURGXFHGWKRVH
FRPPXQLFDWLRQV,WZDVDORW$QGLWZDV
HPEDUUDVVLQJVWXII,WZDVWKHLUHPSOR\HHVPDNLQJ
IXQRI+XON+RJDQLQWKLVDFWXDOVH[WDSHWKDW
WKH\SRVWHGXSWRWKH,QWHUQHW'LGZHILOHD
PRWLRQIRUVDQFWLRQVRYHUWKDW"1RZHGLGQRW
:K\":HOOZHHYHQWXDOO\JRWLW,WZDVVRPHZKDW
SUHMXGLFLDOEHFDXVHZHKDGDVNHGWKHLUHPSOR\HHV
DERXWWKLVDQGZHQHYHUZHUHDEOHWRDFWXDOO\JHW
WKHGRFXPHQWVWRDVNWKHPDERXWVSHFLILFFRPPHQWV
:HHYHQWXDOO\JRWLW
(YHU\WKLQJWKDWWKH\DUHFRPSODLQLQJDERXW
WKH\KDYHLQWKHLUSRVVHVVLRQ7KH\KDYHJRWLW
IURPXV:HKDYHQ
WZLWKKHOGDQ\WKLQJ,IWKHUH
LVDQ\WKLQJWKDWWKH\DUHHQWLWOHGWROHWPHNQRZ
ZKDWWKH\
UHHQWLWOHGWRDQGZH
OOJHWLWWRWKHP
7KDW
VDOZD\VEHHQP\SROLF\
%XWLIWKH\GRQ
WDVNDQGWKH\DVVXPHWKDW
WKHUHLVDFRXUWRUGHUWKDWVD\VWKDW,KDYHWR
JLYHWKHPVRPHWKLQJDQGWKHUHLVQRWDQG
WKHQWKH\ILQDOO\DVNIRULWDQGWKHQWKH\DVN\RX
IRULWDQGWKHQ-XGJH&DPSEHOOVD\V<HVJLYHLW
&RQILGHQWLDO
WRWKHPDQG,JLYHLWWRWKHPWKDW
VQRW
VDQFWLRQDEOH7KDW
VQRWZURQJ,KDYHQ
WZH
KDYHQ
WGRQHDQ\WKLQJZURQJLQWKDWUHVSHFW
,QRUGHUIRUWKHUHWREHVDQFWLRQVWKHUHKDV
WREHDFRXUWRUGHUWKDWZHYLRODWHG7KH\
KDYHQ
WLGHQWLILHGDFRXUWRUGHUWKDWZHYLRODWHG
ZLWKWKHSRVVLEOHH[FHSWLRQRIUHGDFWLQJWKH
SUHIL[HVDQGUHGDFWLQJWKHILYHZRUGVWKDW
VRQD
PRWLRQIRUSURWHFWLYHRUGHU
+HPHQWLRQHGWKH$SULOUGRND\7KDW
V
WKHGD\DQ$SULOUGRUGHU-XVWDOLWWOHELW
RIEDFNJURXQGRQWKDW(YHU\WLPH-XGJH&DPSEHOO
KDVHQWHUHGDQRUGHUVKH
VDOZD\VVDLG7KLVLV
P\RUGHUPHHWDQGFRQIHURQDILQDORUGHUDQG
WKHQ,ZLOOVLJQLW
2Q$SULOUGVKHGLGQ
WGRWKDW6KH
VDLGEHFDXVHZHKDGILYHPRWLRQVWRGLVPLVV
IURPDOORIWKHILYHRUPRVWRIWKHILYH
GHIHQGDQWV$V\RXFDQLPDJLQHWKDWRFFXSLHG
DERXWWZRDQGDKDOIKRXUVRIRUDODUJXPHQWDQG
DOORIWKHLUPRWLRQVZHUHGHQLHG
$QGWKHQLQWKHODVWIHZPLQXWHVRIWKLV
KHDULQJWKDWVKHKDGVFKHGXOHGIRUVKHVDLG'RHV
DQ\RQHKDYHDQ\IXUWKHUFRPPHQWVRQZKDWZDVRXU
H[FHSWLRQVWR<RXU+RQRU
VRUGHUUHJDUGLQJWKH)%,
&RQILGHQWLDO
GRFXPHQWVDQGWKHSKRQHRUGHUV"$QGVKHVDLG,
KDYHDOUHDG\UHDGWKHSDSHUV,GRQ
WZDQWWR
KHDUDQ\WKLQJPRUHWKDW
VEH\RQGWKHSDSHUV,V
WKHUHDQ\WKLQJPRUH"
,WKLQNWKHUHZDVYHU\YHU\OLWWOHWKDWZDV
EH\RQGZKDWWKHSDSHUVVDLGDQGVKHVDLG2ND\
,
PJRLQJWRRYHUUXOHWKHH[FHSWLRQV,
PJRLQJWR
VLJQWKHRUGHU0U%HUOLQGR\RXKDYHDQRUGHU"
+HVDLG<HV<RXU+RQRU
+HKDQGHGLWWRKHUVKHVLJQHGLWDQG,
GRQ
WHYHQNQRZLI,JRWDFRS\RILWIRUWKH
ILUVWILYHGD\V7KH\VD\WKDWWKH\KDQGHGLWWR
PH,GLGQ
WKDYHDQ\PDWHULDOVLQP\ILOH
VKRZLQJLW7KHFRXUWGLGQ
WSXWLWXSRQWKH
V\VWHPWKH(GLVFRYHU\V\VWHP
7KH\KDGQRWVXSSOLHGPHDFRS\XQWLOWKH\
VDLG$UH\RXJX\VJRLQJWRFRPSO\"<RXKDYH
WKUHHGD\VWRFRPSO\
$QG,VDLG&DQ\RXVXSSO\PHZLWKDFRS\RI
WKHRUGHUSOHDVH"%HFDXVH,GLGQRWHYHQNQRZ
ZKDWLWVDLG
$QGWKH\VD\7KHGRJDWHP\KRPHZRUN,W
V
QRWWKDW,W
VWKDWLIWKHUHLVJRLQJWREHDQ
RUGHUZH
UHHQWLWOHGWRQRWLFHRIZKDWWKDWRUGHU
LV6RZHJRWWKHRUGHUDQGLWVDLGZHKDGWR
&RQILGHQWLDO
FRPSO\LQWKUHHGD\V:HLPPHGLDWHO\VWDUWHG
SURGXFLQJWKLQJVWRWKHP,WKLQNLWWRRND
FRXSOHRIH[WUDGD\V$QG0U%HUOLQDQGWKDW
NLQGRIOHDGVPHWRWKHPHHWDQGFRQIHUSURFHVV
WKHVRFDOOHGPHHWDQGFRQIHUSURFHVVEHIRUHWKLV
PRWLRQ0U%HUOLQVHQWPHDOHWWHUVD\LQJ<RX
QHHGWRFRPSO\ZLWKWKDW;<=$QG,VHQWKLP
DOHWWHUULJKWEDFNSUREDEO\ZLWKLQKRXUVRU
WZRGD\VDWWKHDEVROXWHPRVWEXWLW
VSUREDEO\
RQHGD\VD\LQJZHDUHDEVROXWHO\FRPSO\LQJZLWK
WKLVDQGLW
VJRLQJWRWDNHXVDIHZGD\V
$QG,H[SODLQHGWKDWWKHSKRQHRUGHUVDUHQRW
LQRXUWKHSKRQHORJVDUHQRWLQRXU
SRVVHVVLRQ7KH\
UHLQWKHSRVVHVVLRQRIWKH
WHOHSKRQHFDUULHUDQGZH
UHLQWKHSURFHVVRI
JDWKHULQJXSWKHGLIIHUHQWFRPPXQLFDWLRQVZLWKODZ
HQIRUFHPHQW$QGSDUWRIWKHRUGHUZDVZHKDGWR
SURYLGHWKHPZLWKDVXPPDU\RIDOOWKH
FRPPXQLFDWLRQVZLWKODZHQIRUFHPHQWWKDWKDG
KDSSHQHGRYHUWKHSDVW\HDUDQGDKDOIRUVR\HDU
DQGFRXSOHRIPRQWKV
6R,KDGWRFRQWDFWP\RIILFHKDGWR
FRQWDFW0U7XUNHODQG'DYLG+RXVWRQWRJHWWKH
VXPPDULHVDQGWKHQ,KDGWRJREDFNDQGWKH\
KDGWRSUREDEO\JREDFNLQWRWKHLUUHFRUGV,KDG
&RQILGHQWLDO
WRJREDFNLQWRP\UHFRUGV,WKLQN,KDGRQHRU
PD\EHWZRSKRQHFDOOVZLWKWKH)%,D\HDUEHIRUH
WKDW6R,KDGWRJRORRNWRVHH,FRXOGQ
W
UHPHPEHUZKDW,KDGWDONHGWRWKHJX\DERXW,W
KDGEHHQVRORQJ,WKLQNPD\EHLWZDVDILYH
WHQPLQXWHFRQYHUVDWLRQDERXW:KDW
VWKHVWDWXV
RIWKLV"
6R,KDGWRJREDFNLQP\UHFRUGVDQG,
ZHSXWLWWRJHWKHUDVIDVWDVZHFRXOGDQGWKHQ
ZHSURYLGHGWKHPZLWKDYHU\OHQJWK\LQWHUURJDWRU\
UHVSRQVHYHU\OHQJWK\+HGLGQ
WSURYLGHWKDWWR
\RXEXWLWZDVYHU\OHQJWK\+HFKDUDFWHUL]HVLW
DVEHLQJERLOHUSODWHEXWWKDWZDVZKDWHYHU\ERG\
FRXOGUHPHPEHUZDVWKHUHZHUHFRPPXQLFDWLRQV
1RZ'DYLG+RXVWRQKDGDORWRI
FRPPXQLFDWLRQVZLWKWKH)%,EHFDXVHLWZDVSDUW
RIWKHVWLQJRSHUDWLRQDQGWKHVWLQJRSHUDWLRQ
ZDVUHODWHGWRDQH[WRUWLRQLVW
-8'*(&$6(<HV
05+$5'(5,WZDVQRWUHODWHGWR*DZNHU
WKHVWLQJRSHUDWLRQ
-8'*(&$6(8KKXK,QGLFDWHV
DIILUPDWLYHO\
05+$5'(51RZDIWHUWKHVWLQJRSHUDWLRQ
ZHGRQ
WNQRZZKDWWKH)%,ZKHUHWKHLU
&RQILGHQWLDO
LQYHVWLJDWLRQVZHQW:HGRQ
WNQRZLILWOHGWR
*DZNHU,W
VSRVVLEOH0D\EHQRW:HGLGQRW
NQRZ:HGLGQ
WNQRZLILWOHGWRRWKHUSHRSOH
0LNH&RZKHDG&DOWDRU7RQ\%XUWRQDQGKLVDJHQF\
%XFKZDOG$JHQF\:HGLGQ
WNQRZZKHUHDOOWKDW
ZHQWEXWZHSURYLGHGDVXPPDU\RIWKH
FRPPXQLFDWLRQVIURP'DYLG+RXVWRQWRWKH)%,WKDW
OHGWRWKH)%,VWLQJ
$QGDJDLQWKH\KDGQHYHUDVNHGXVIRUWKDW
XQWLOWKH\SURSRXQGHGWKHLUGLVFRYHU\UHJDUGLQJ
)%,FRPPXQLFDWLRQV7KH\KDGNQRZQIRURYHUD
\HDUWKDWWKHUHZHUH)%,FRPPXQLFDWLRQVDQGZKHQ
WKH\DVNHGZHZHUHJLYLQJLWWRWKHP
%XWDVIDUDVWKHVRFDOOHGPHHWDQGFRQIHU
SURFHVV,WROGWKHPWKDWZHZHUHLQWKHSURFHVV
RIFRPSO\LQJZLWKWKHRUGHUDQGWKH\LPPHGLDWHO\
ILOHGWKHLUPRWLRQ$VIDVWDVWKH\FRXOGWKH\
ILOHGWKHLUPRWLRQ,QIDFWLWZDVVRIDVWLW
DSSHDUHGWRPHWKDWWKH\KDGDOUHDG\EHHQ
SUHSDULQJWKHLUPRWLRQVLPXOWDQHRXVO\ZLWK
SUHSDULQJWKHLUPHHWDQGFRQIHUEHFDXVHWKH\ZHUH
SUHWW\FRQYLQFHGWKDWWKH\ZHUHJRLQJWREULQJ
WKLVPRWLRQ
$QGLWZDVWKHLQLWLDOPRWLRQZDVDQHPLF
,WKDGYHU\OLWWOHIDFWV,WZDVVLPSO\:HKDYH
&RQILGHQWLDO
IDLOHGWRFRPSO\ZLWKFRXUWRUGHUVZHKDYH
IODXQWHGWKHMXGLFLDOSURFHVVZHHQJDJHGLQ
PLVFRQGXFWZLWKRXWJLYLQJDQ\VSHFLILFVZH
GLVUHJDUGHGZKDWWKHFRXUWKDVVDLGZH
YH
FRQFHDOHGHYLGHQFHWKDWNH\IDFWVKDYHEHHQ
FRQFHDOHGDOOWKLVNLQGRIJHQHULFVWXIIEXWQR
IDFWV$QGWKHQZHKDGWRILOHDQRSSRVLWLRQ
VD\LQJ:H
UHQRWTXLWHVXUHZKDW\RX
UHWDONLQJ
DERXWEXWZHKDYHQ
WGRQHWKDWDWDOOZHKDYH
EHHQIRUWKFRPLQJ$QGWKHQ,H[SODLQHGKRZWKH
UHSO\FDPHLQDQGWKDWZDVYHU\ODUJH
,PHDQ,IHHOWKDW,GRQ
WNQRZPD\EH
,
PROGVFKRRO,IHHOWKDWWKHUHVKRXOGEHD
PHHWDQGFRQIHUSURFHVVEHIRUHWKHUHLVDPRWLRQ
DVRSSRVHGWRDPRWLRQDQGDPHHWDQGFRQIHUDOO
KDSSHQLQJDWWKHVDPHWLPHDQGWKHQUDFHWRWKH
FRXUWVRWKDWLW
VOLNHDJDPHRIJRWFKD$KKD
ZHEURXJKWDPRWLRQ2KDQGQRZ\RX
UHFRPSO\LQJ
ZLWKWKHRUGHUQRZWKDWZHILOHGWKHPRWLRQ
%XWZLWKLQWKDWWHQGD\SHULRGZHZHUH
DOUHDG\FRPSO\LQJZLWKWKDWRUGHU$QGWKHUHZHUH
DIHZPRUHGRFXPHQWVWKDWZHKDGWRJHW:HKDG
WRJHWVRPHDQVZHUVIURP'DYLG+RXVWRQZKRLVD
EXV\JX\DQGIURP0U7XUNHOZKRLVDEXV\JX\
:HKDGWRJREDFNLQWRRXUDUFKLYHVWRUHPHPEHU
&RQILGHQWLDO
ZKDWRXUFRPPXQLFDWLRQVZHUHDQGWRZKRPDQGWKHQ
ZHSURYLGHGWKHP
1RZLIWKH\GLGQ
WOLNHWKHH[WHQWRIRXU
LQWHUURJDWRU\UHVSRQVHVLIWKH\IHOWWKDWWKH\
ZHUHQRWVSHFLILFHQRXJKWKH\FRXOGKDYHEURXJKW
DPRWLRQWRFRPSHOIXUWKHUUHVSRQVHWRWKLV
LQWHUURJDWRU\RUWKH\FRXOGKDYHSUHVHQWHGLWWR
<RXU+RQRUDQGVDLG7KLVLVQ
WHQRXJKWKHUHKDV
JRWWREHPRUH
%XWWKH\GLGQRWGRWKDW7KH\MXVWWKH\
MXVWZDQWHGWRWKH\ZDQWWRHQGWKHFDVHLV
ZKDWWKH\ZDQW7KH\GRQ
WLW
VQRWDERXW
GLVFRYHU\LW
VDERXWHQGLQJWKHFDVHEHFDXVH
WKH\ORVWWKHLUILYHPRWLRQVWRGLVPLVV$QG
WKLVWKLQJFDPHULJKWRQWKHKHHOVRIWKDWULJKW
DIWHU7KH\DUHKHOOEHQWRQHOLPLQDWLQJWKLV
FDVHDQGPDNLQJVXUHWKDW0U%ROOHDFDQQRW
SURFHHGWRFRXUWZLOOQRWKDYHKLVGD\LQFRXUW
6RWKDW
VZKDWWKLVLVDOODERXW$QGWKDW
V
ZK\WKH\NHHSEULQJLQJWKHVHPRWLRQVIRUVDQFWLRQV
DQGPRWLRQVIRUVDQFWLRQV7KH\DUHPRUH
LQWHUHVWHGLQOLWLJDWLQJDERXWWKHOLWLJDWLRQWKDQ
WKH\DUHOLWLJDWLQJDERXWWKHLURZQFRQGXFW
1RWLFHWKDWQRQHRIWKLVKDVDQ\WKLQJWRGR
ZLWKWKHLUDFWXDOFRQGXFW7KLVFDVHOHWPH
&RQILGHQWLDO
UHPLQGHYHU\ERG\ZKDWWKLVFDVHLVDERXW7KH\
UHFHLYHGDQDQRQ\PRXV'9'WKDWZDVPLQXWHVORQJ
RI0U%ROOHDKDYLQJVH[ZLWKVRPHERG\LQD
SULYDWHEHGURRP$QGLWZDVQRWVRPHWKLQJWKDW
WKH\KDGFUHDWHGOLNHDSULYDWHVH[WDSH7KLV
ZDVVRPHWKLQJZKHUHDQG\RXKHDUG0U&OHP
WHVWLI\,WZDVOLNHWKDWOLWWOHPRWLRQGHWHFWRU
WKDW
VZD\XSLQWKHFRUQHURIWKHURRPWKDW
V
SDLQWHGWKHVDPHFRORUDVWKHZDOO,WZDVD
VXUUHSWLWLRXVWDSH,WZDVDKLGGHQWDSHD
KLGGHQFDPHUD
7KH\UHFHLYHGDFRS\RILW7KH\GLGQ
WPDNH
DQ\LQTXLULHVZLWK0U%ROOHDDERXWZKHWKHUKH
DSSURYHGWKLVZKHWKHUWKLVZDVVRPHWKLQJWKDWKH
ZDQWHGWREHRXWWKHUH7KH\VLPSO\LPPHGLDWHO\
HGLWHGLWGRZQLQWRLQWKHZRUGVRIWKHLURZQ
HGLWRULQFKLHIDKLJKOLJKWUHHO7KDW
VWKH
ZRUGVRIWKHLUHGLWRULQFKLHI7KH\FUHDWHGD
KLJKOLJKWUHHODPLQXWHDQGVHFRQGVRIWKH
JUHDWHVWVH[XDOHYHQWVWKDWKDSSHQHGRQWKDW
PLQXWHWDSH7KDW
VZKDWWKH\SRVWHGXSWRWKH
,QWHUQHW
'DYLG+RXVWRQZKRXQIRUWXQDWHO\LVQRWKHUH
WRGD\LPPHGLDWHO\VHQWWKHPDFHDVHDQGGHVLVW
OHWWHUDQGVDLG7DNHWKLVGRZQ,WZDVLOOHJDOO\
&RQILGHQWLDO
UHFRUGHGLW
VLOOHJDOO\XSRQWKH,QWHUQHW\RX
KDYHQRULJKWVWRGRWKLVLWLVDQLQYDVLRQRI
RXUSULYDF\$QGWKHQKHGLGQ
WJHWDUHVSRQVHLQ
KRXUVRUKRXUVDQGKHLPPHGLDWHO\VHQWDQ
HPDLOGLUHFWO\WRWKH&(2RIWKHLUFRPSDQ\1LFN
'HQWRQDQGVDLGWKHVDPHWKLQJ<RXKDYHWRWDNH
WKLVGRZQLW
VLOOHJDOLW
VXQDXWKRUL]HGWDNH
LWGRZQLPPHGLDWHO\+HJRWDOHWWHUDFRXSOH
GD\VODWHUVD\LQJ:H
UHQRWWDNLQJLWGRZQ
7KDW
VZKDWWKLVFDVHLVDERXW1RWLFHLQ
WKHPLQXWHVWKDW0U%HUOLQVSRNH\RXGLGQ
W
KHDUDQ\WKLQJDERXWZKDWWKHFDVHLVDFWXDOO\
DERXW,W
VDOODERXWWKHH[WRUWLRQLVWDQGZKDW
WKHH[WRUWLRQLVWZDVWU\LQJWRGR
6RWKLVODZVXLWILOHGZDVILOHGPD\EHD
ZHHNRUVR7KHQ,JRWDFDOOWRJHWLQYROYHG
DQGWKHQZHILOHGDODZVXLW$QGZH
YHEHHQRII
DQGUXQQLQJHYHUVLQFH
,DOOXGHGWRLWHDUOLHUEXWLQRUGHUIRU
WKHUHWREHVDQFWLRQV\RXKDYHWRKDYHD
YLRODWLRQRIDFRXUWRUGHU,VWLOOKDYHQ
WVHHQ
WKHFRXUWRUGHUWKDWZHVXSSRVHGO\KDYHYLRODWHG
7KHRQO\SRWHQWLDOKHUHDQGLI\RXGLVDJUHH
-XGJH&DVH,
PKDSS\WRGLVFXVVWKDWZLWK\RX
0U%HUOLQWDONHGDERXWPHGLDDSSHDUDQFHV
&RQILGHQWLDO
:HKDYHJRQHRYHUDQGRYHUDQGRYHUZLWK\RXDERXW
PHGLDDSSHDUDQFHV7KHILUVWWKLQJLVDQGKH
GLGQ
WPHQWLRQWKLVLQ2FWREHURIDWWKH
WLPHWKDWWKH\SRVWHGWKLVVH[WDSH0U%ROOHD
KDSSHQHGWREHRQDSUHSODQQHGPHGLDWRXUIRUD
ZUHVWOLQJHYHQWWKH71$ZUHVWOLQJHYHQW+H
WHVWLILHGLQKLVGHSRVLWLRQPD\EH\RXUHFDOO
EHFDXVHWKHLUSRVLWLRQLVKHZDVWU\LQJWRSURPRWH
WKLVVH[WDSH:HOOQRWKLQJLVIXUWKHUIURPWKH
WUXWKQRWKLQJ$QGWKH\SXWWKDWLQFRXUW
SDSHUV1RWKLQJLVIXUWKHUIURPWKHWUXWK
%XW\RXKHDUG0U%ROOHDWHVWLI\+HVDLG
WKHVH[WDSHFDPHRXWDQG,ZDVQ
WJRLQJWRKLGH
IURPLW,GRQ
WKLGHIURPWKLQJV,ZDVWKHUH
LQWKHPHGLDWRSURPRWHP\ZUHVWOLQJHYHQWDQG
WKDW
VZKDW,ZDVGRLQJ7KHUHLVQRWDVLQJOH
VKUHGRIHYLGHQFH,QIDFWDOOWKHHYLGHQFHLV
DJDLQVWWKHPRQWKLV
:HGLGQ
WKDYH0U%ROOHDGLGQ
WKDYH
DQ\WKLQJDERXWKLVPHGLDLWLQHUDU\EHFDXVHKH
WHVWLILHGDERXWWKLV+HVDLGXVXDOO\WKH\KDQG
VRPHWKLQJWRPHDQGDIWHUWKHPHGLDWRXULVRYHU
,KDQGLWEDFNRU,WRVVLWRXW,KDYHQRXVH
IRUWKLVVWXII
7KHGD\EHIRUHWKH\ZKHQWKH\VWDUWHGWR
&RQILGHQWLDO
PDNHDQLVVXHDERXWWKLVZHPDGHDQLQTXLU\WR
WKH71$:UHVWOLQJWRVHHLIZHFRXOGJHWWRSXW
DQHQGWRWKLVLVVXHEHFDXVHLWZDVVRVLOO\WR
XVWKDWKHZDVVXSSRVHGO\SURPRWLQJWKHVH[WDSH
,PHDQMXVWLWZDVVRIDUIURPWKHWUXWKZH
MXVWZDQWHGWRSXWDQHQGWRLW6RZHFRQWDFWHG
71$:UHVWOLQJWRVD\'R\RXJX\VKDYHDFRS\RI
WKHLWLQHUDU\DVLWH[LVWHGEHIRUHWKHVH[WDSHVR
WKDWZHFDQVKRZWKHP"$OORIWKHVDPH
DSSHDUDQFHVWKDWKHPDGHZHUHDOOOLVWHGDV
DSSHDUDQFHVWKDWKHZDVJRLQJWRPDNHDQ\ZD\
7KHQWKH\VWDUWHGFKDQJLQJWKHLURXWORRNRQ
LWDQGWKH\VDLG:HOOKHQHYHUFRXOGKDYH
JRWWHQRQWR+RZDUG6WHUQLILWZDVQ
WIRUWKHVH[
WDSH+HQHYHUFRXOG
YHJRWWHQRQWKH7RGD\6KRZ
ZLWKRXWWKHVH[WDSH
:HOO\RXNQRZZKDW71$WKHSHUVRQZKRZDV
WKHSXEOLFLVWDWWKHWLPHKDGOHIW71$DQGVRZH
KDGWRWUDFNKHUGRZQ$QGVKHVDLG2K,KDSSHQ
WRKDYHRQHRIWKRVHROGHPDLOV$QGVKHVHQWLW
RYHUWRXV,WZDVGDWHGEHIRUHWKHGDWHRIWKH
VH[WDSHDQGLWVKRZV+RZDUG6WHUQDSSHDUDQFHRQ
WKLVGDWH7RGD\6KRZRQWKLVGDWH(YHU\WKLQJ
KDGDOUHDG\EHHQODLGRXWIRUWKHZUHVWOLQJ
SURPRWLRQ$QGVR,VHQWLWRYHUWRWKHPMXVWWR
&RQILGHQWLDO
VD\+HUH\RXJRZHKDSSHQHGWRWUDFNWKLVGRZQ
IRU\RXQRWWKDWZHZHUHFRQFHDOLQJDQ\WKLQJ:H
GLGQ
WKDYHLW
7KLVKDSSHQHGWREHDQDQGLWVKRZHGWKDW
WKLVKDGEHHQDQHPDLOWKDWKDGEHHQVHQWRYHUWR
DQDFFRXQWRI0U%ROOHD1RZ0U%ROOHD
WHVWLILHGKHGRHVQ
WXVHWKHFRPSXWHU+H
GRHVQ
W+HWH[WV+HGRHVQ
WXVHFRPSXWHUV
6RWKH\KDSSHQHGWRVHQGLWRYHUWRDQHPDLO
DFFRXQWDQGWKHQSHUKDSVVRPHERG\ZKRPRQLWRUV
WKDWHPDLODFFRXQWSULQWHGLWRXWIRUWKHP$QG
DIWHUWKHPHGLDWRXULWZDVQ
WLWZDVQ
W
DURXQGDQ\PRUH,WZDVQ
WOLNHDQ\RQHZDV
VSROLDWLQJHYLGHQFHLQWKHFDVHUHJDUGLQJWKHLU
VH[WDSH7KLVZDVMXVWVRPHWKLQJWKDWKDG
QRWKLQJWRGRZLWKWKHLUVH[WDSH,WZDVD
SUHSODQQHGPHGLDWRXU$QGDVDOZD\VKDSSHQV
DIWHUDPHGLDWRXU\RXJHWULGRIWKHROGVWXII
XQOHVV\RXZDQWWRWUDFNLWGRZQIURPWKH
SXEOLFLVW6RWKHUHLVQRWKLQJWKDWZHKDYHQ
W
JLYHQWKHPDERXWWKHPHGLDWRXU
/HWPHWKHUHLVQRWKLQJWKDWWKH\KDYH
DVNHGIRUWKDWZHKDYHQ
WJLYHQWKHPWKDWZHKDYH
LQRXUSRVVHVVLRQ$QGQRERG\GHVWUR\HGDQ\WKLQJ
1RZWKH\KDYHVHQWDVXESRHQDWRWKHSXEOLFLVW
&RQILGHQWLDO
ZKRZHJRWWKDWLQIRUPDWLRQIURPEHFDXVHKHUQDPH
LVRQWKHHPDLO$QGZHVHQWLWRYHUWRWKHP
7KH\ZDQWWZR\HDUV
ZRUWKRIDOORIKHU
FRPPXQLFDWLRQVRIHYHU\NLQGWKDWKDVWRGRZLWK
+XON+RJDQ2ND\:HOOZH
OOSUREDEO\EH
OLWLJDWLQJRYHUWKDW
%XWDVIDUDVWKHPHGLDWRXUWKHUHLV
QRWKLQJWKDWZHKDYHWRKLGH]HUR$QGWKHUHLV
QRWKLQJWKDWZHKDYHKLGGHQDQGWKHUHLVQRWKLQJ
WKDWZHKDYHVSROLDWHG7KH\
UHWU\LQJWRPDNHLW
VRXQGOLNHZHKDYHDOOWKLVLQQXHQGRDQGFORDNDQG
GDJJHUDQGZRUGVOLNHFRQFHDOHGHYLGHQFHDQG
GHVWUR\HGDQGDOOWKLVVWXII,PHDQLW
V
MXVWLW
VMXVWQRWWUXH
/HW
VWDONDERXWWKHFRQWHQWVRIWKH
H[WRUWLRQLVW
VFRPPXQLFDWLRQVEHFDXVHWKHUHLVD
ORWRIWDONDERXWWKDW$QG0U%HUOLQ,
PJODG
\RXUHPLQGHGPHRIWKLVEHFDXVHKHVDLGWKDWDW
RQHRIWKHKHDULQJVDQGKHUHPLQGHGPH7KLV
LVWUXH
$WRQHRIWKHKHDULQJVDQG,GRQ
W
UHPHPEHUZKLFKRQHLWZDVEXWLWZDVDZKLOH
DJRWKHUHZDVDGLVFXVVLRQDERXWZKHWKHUWKHUH
PLJKWH[LVWRWKHUWDSHV,GLGQRWNQRZLIDQ\
RWKHUWDSHVH[LVWHG,QHYHUVDLGWKH\GRQRW,
&RQILGHQWLDO
QHYHUVDLGWKH\GR,GLGQ
WNQRZ%XWWKHUHZDV
DGLVFXVVLRQLIRWKHUWDSHVH[LVWHGDQGZHZHUH
JRLQJZLWKWKHSUHPLVHWKDWWKHUHPLJKWH[LVW
RWKHUWDSHV$QGZHGLVFXVVHGWKDWLIWKHUHDUH
RWKHUWDSHVLQH[LVWHQFHDQGLIWKH\KDYHHYHU
FRPHWRDQ\RIRXUSRVVHVVLRQ*DZNHUZDV
FRQFHUQHGWKDWWKH\FRXOGEHFRPHGHVWUR\HGRU
FRQFHDOHGRUVRPHWKLQJOLNHWKDW
$QG,GLGPDNHWKHGHFLVLRQWKDW,GRQ
WVHH
KRZRWKHUWDSHVDUHUHOHYDQWWRWKLVFDVHEHFDXVH
WKLVFDVHLVDERXWWKHRQHWDSHWKDWWKH\JRWQRW
DQ\RWKHUWDSHVWKDWPLJKWH[LVWRIRWKHU
LQFLGHQWVDQGHQFRXQWHUVEHWZHHQ0U%ROOHDDQG
0V&OHPEHFDXVHWKH\GLGQRWSXEOLVKWKRVH
7KH\GLGQ
WKDYHWKHPLQWKHLUSRVVHVVLRQ7KH\
GRQ
WKDYHWKHPLQWKHLUSRVVHVVLRQQRZ:HGRQ
W
KDYHWKHP:HKDYHQHYHUVHHQWKHP0D\EHWKH\
H[LVW0D\EHWKH\GRQ
WH[LVW
%XWZHKDGDFRQYHUVDWLRQZLWK-XGJH&DPSEHOO
DERXWLIWKHUHDUHWDSHV$QG-XGJH&DPSEHOO
VDLG:HOOLIWKHUHDUHWDSHVSUHVHUYHWKHPDQG
WKH\DUHJRLQJWRJRWR-XGJH&DVHDQG-XGJH&DVH
ZLOOUHYLHZWKHVHWDSHVWRGHWHUPLQHLIWKHUHLV
UHOHYDQWGLDORJXHVXFKDV0U&OHPDOOHJHGO\
VD\LQJ1RZZHFDQJHWULFK$QGDSSDUHQWO\LI
&RQILGHQWLDO
KHHYHUVDLGLW,EHOLHYHWKDWKHWHVWLILHGWKDW
KHGRHVQ
WUHFDOOLWRUQHYHUVDLGLW%XWWKHUH
LVQRDFWXDOFRPSHWHQWHYLGHQFHWKDWKHHYHUVDLG
LWEXWZKRNQRZVPD\EHLWH[LVWVRQDWDSH
VRPHZKHUH,GRQ
WNQRZ
%XWJRLQJZLWKWKHSUHPLVHWKDWPD\EHKHVDLG
WKDWWKHSUHPLVHLVWKDWKHVDLGWKDWWR+HDWKHU
DQG0U%ROOHDFHUWDLQO\ZDVQRWLQWKHURRP
-XVWVRLIWKHUHZDVDQ\LQQXHQGRDERXWDQ\WKLQJ
OLNHWKDW
%XWWKHFRQFHSWZDV<RXU+RQRUZRXOGJHWWKH
WDSH<RXU+RQRUZRXOGUHYLHZWKHWDSHEHFDXVH
WKHUHZRXOGEHDORWRIWKHRRKVDQGDDKVRQWKH
WDSHULJKW",PHDQWKHUHZRXOGEHDORWRI
2KWKDWIHHOVVRJRRGDQGVWXIIOLNHWKDWZKLFK
LVQRWDQGWKDWZDVRQHRIP\FRQFHUQVWR
-XGJH&DPSEHOO
,VDLG:HOO<RXU+RQRUWKH\KDYHDOUHDG\
SRVWHGDWDSHWRWKHZRUOGWKDWPLOOLRQVRISHRSOH
KDYHZDWFKHGDQGWKDW
VZK\ZH
UHDOOKHUHLQD
ODZVXLW:H
UHFRQFHUQHGWKDWWKH\EHLQJDPHGLD
RUJDQL]DWLRQFRXOGJHWDKROGRIRQHRIWKHVH
WDSHVDQGWKHQSRVWWKDWWKDWQHZWDSHWRWKH
,QWHUQHW:HZDQWWRZHZDQWWRSXWDOLGRQ
WKLVEHFDXVHWKHHYHQWVQHYHUVKRXOGKDYHEHHQ
&RQILGHQWLDO
WDSHGULJKW",PHDQLISHRSOHWZRSHRSOHDUH
LQDEHGURRPKDYLQJVH[DQGWKH\DUHQRWJLYLQJ
WKHLUFRQVHQWWREHWDSHGRUDWOHDVWRQHRIWKHP
LVQRWJLYLQJWKHLUFRQVHQWWREHWDSHGWKHUH
VKRXOGQ
WEHDQ\WDSLQJDWDOO
$QGLIWKHUHLVDWDSLQJDQGLWIDOOVLQWR
WKHKDQGVRIDPHGLDRUJDQL]DWLRQWKDWPHGLD
RUJDQL]DWLRQFHUWDLQO\VKRXOGQRWEHSRVWLQJWKDW
XSWRWKH,QWHUQHWZLWKIXOOIURQWDOQXGLW\DQG
HUHFWLRQVDQGRUDOVH[YLYLGO\EHLQJSRUWUD\HGDQG
VH[XDOLQWHUFRXUVHYLYLGO\EHLQJSRUWUD\HG7KDW
VKRXOGQRWSRVWHGWRWKH,QWHUQHW
$QGVRRXUFRQFHUQZDV<RXU+RQRUZHGRQ
W
ZDQW*DZNHULIWKHUHLVDQRWKHUWDSHZHGRQ
W
ZDQW*DZNHUJHWWLQJLW
6KHVDLG2ND\,IWKHUHLVDQRWKHU*DZNHU
GRHVQ
WJHWLW-XGJH&DVHJHWVLW-XGJH&DVH
ZLOOUHYLHZLWWRGHWHUPLQHLIWKHUHLVDQ\
GLDORJXHDQ\ZRUGVWKDWSHRSOHDUHVD\LQJWKDWLV
UHOHYDQWWRWKLVODZVXLWWRWKHFODLPVDQG
GHIHQVHVLQWKLVODZVXLW$QGLIWKHUHLVWKHQ
-XGJH&DVHZRXOGJHWDFRXUWUHSRUWHUWR
WUDQVFULEHRQO\WKRVHSRUWLRQVRIWKHGLDORJXH
WKDW
VUHOHYDQWQRWWKHRRKVDQGDDKVDQGWKH
IHHOVVRJRRGDQGWKDWVRUWRIWKLQJMXVWWKH
&RQILGHQWLDO
GLDORJXH,IVRPHERG\VD\V:H
OOJHWULFKRU
VRPHERG\VD\V,DSSURYHRIWKLVPHVVDJH\RX
NQRZLIWKHUHLVDGLDORJXHWKDW
VUHOHYDQW
6ROHW
VWDNHDORRN$QGWKLVLVQRW
VRPHWKLQJWKDW,SXWLQWRP\RSSRVLWLRQSDSHUEXW
LW
VVRPHWKLQJWKDWFDPHWRPHUHFHQWO\DQG
FHUWDLQO\ZKHQ0U%HUOLQPHQWLRQHGLW6RLI
\RXWDNHDORRNDWWKLVLVWKHUHGDFWHG
YHUVLRQ:HOOWKLVLVWKLVLVSDUWRILW
DQ\ZD\,
PORRNLQJDWWKHWKLQJWKDWWKH
H[WRUWLRQLVWVHQW6RPHZKHUHZHKDYH
05%(5/,1,ILW
VKHOSIXO<RXU+RQRU
LW
VDWWDFKHGWRRXUFRQILGHQWLDOVWDWHPHQWDW
WDE
05+$5'(57DE"
05%(5/,17KUHH,EHOLHYH
05+$5'(52KRND\,ZDVSDVVLQJRYHU
LWEHFDXVHLWKDVWKLVVRFDOOHGVHWWOHPHQW
DJUHHPHQWLQLW
2ND\-XVWWRJLYHSHUVSHFWLYHWDELV
WKLVZDVSDUWRIWKHVWLQJRSHUDWLRQ:KHQ
0U+RXVWRQZDVFRQWDFWHGE\WKHH[WRUWLRQLVW
0U+RXVWRQZHQWLPPHGLDWHO\WRWKH)%,DQGVDLG
:H
UHEHLQJH[WRUWHG$QGVWXIIOLNHWKLVKDSSHQV
WRFHOHEULWLHV,I\RXUHDGWKHQHZVDIHZ\HDUV
&RQILGHQWLDO
EDFN'DYH/HWWHUPDQZDVEHLQJVKDNHQGRZQE\
VRPHERG\ZKRZDV,WKLQNWKHVSRXVHRIVRPHERG\
DQGVDLG,NQRZWKDW\RXKDGDQH[WUDPDULWDO
DIIDLU,ZLOOVHOO\RXWKHOLWHUDU\ULJKWVWKDW
,SRVVHVVWRWKHVWRU\RI\RXKDYLQJDQ
H[WUDPDULWDODIIDLU7KHSULFHLV
'DYLG/HWWHUPDQZHQWWRWKH)%,7KDWPDQLV
VLWWLQJLQMDLOQRZEHFDXVHWKDW
VH[WRUWLRQ<RX
FDQ
WGRWKDW
&HOLQH'LRQ
VKXVEDQGZDVSDUWRIDQ
H[WRUWLRQ7KHZRPDQZKRZDVH[WRUWLQJKLPKHU
KXVEDQGDUHVLWWLQJLQMDLOULJKWQRZEHFDXVH
VKHDOOHJHGWKDWKHKDGUDSHGKHUDQGKHGLGQ
W
DQGVKHZDQWHGRUVRPHWKLQJ$QG
VRZKHQVRPHWKLQJOLNHWKLVKDSSHQHGWR0U%ROOHD
DQG0U+RXVWRQZDVILHOGLQJWKHFDOOVKH
LPPHGLDWHO\VHQWWKLVRYHUWRWKH)%,$QGKHZDV
IROORZLQJWKH)%,
VLQVWUXFWLRQVRQKRZWRGHDO
ZLWKWKLVH[WRUWLRQLVW
6RZKDWWKLVLVLW
VDGXPP\VHWWOHPHQW
DJUHHPHQWWKHSXUSRVHRIZKLFKLVWRJHWWKH
H[WRUWLRQLVWLQWRDURRPDQGWRPDNHFHUWDLQ
VWDWHPHQWVWKDWDUHEHLQJUHFRUGHGE\WKH)%,LQ
WKHQH[WGRRUURRP$QGWKDW
VH[DFWO\ZKDW
KDSSHQHG$QGWKHQWKHUHZDVDVWLQJWKDW
&RQILGHQWLDO
KDSSHQHG
$QGVRWKHDQGMXVWWRFDUU\WKDWRXWDW
DFHUWDLQRSSRUWXQHWLPHDERXWRUVRIHGHUDO
DJHQWVVWRUPLQWRDURRPZLWKWKHH[WRUWLRQLVW
V
ODZ\HUDQGWKHH[WRUWLRQLVW
VDJHQWEXWWKH
DFWXDO0U;LVZKDWWKH\FDOOWKHSHUVRQQHYHU
DFWXDOO\VKRZHGXS6RWKH\KDGDVWLQJZLWKRXW
0U;EXWZLWKWKHRWKHUWZRSHRSOH$QGWKDW
V
ZKHQWKH)%,WRRNRYHUDQGWKH$86$JRWLQYROYHG
DQGDOOWKDW
:HOOWDELVWKLVGXPP\VHWWOHPHQW
DJUHHPHQWEHWZHHQ0U%ROOHDDQGWKHH[WRUWLRQLVW
$QGLWKDVFHUWDLQFRPPXQLFDWLRQVIURPWKH
H[WRUWLRQLVWWR0U%ROOHD
VWHDP,W
VUHDOO\
'DYLG+RXVWRQZKRLVKDQGOLQJLW$QGLWZDV
GHVFULELQJDOOHJLQJWKDWWKHUHZHUHWKUHH
WDSHVDOOHJLQJWKDWWKHILUVWWDSHLVGDWHG-XO\
UGWKHVHFRQGRQHLVGDWHG-XO\WKDQGWKH
WKLUGRQHLVXQGDWHG%XWZKHQ\RXFRPSDUHWKDW
ZLWKZKDWWKHDVVLVWDQW86DWWRUQH\KDVWKH
ILUVWWDSHLV-XO\DQGWKHVHFRQGWDSHLV-XO\
-8'*(&$6(,VDZWKDW
05+$5'(56RZH
YHJRWDQHLWKHUWKH
H[WRUWLRQLVWLVQRWWHOOLQJLVQRWJLYLQJ
&RQILGHQWLDO
DFFXUDWHLQIRUPDWLRQRUWKH$86$PDGHDW\SR,
GRQ
WNQRZ$QGWKHQWKHWKLUGRQHKDVQRGDWHRQ
LW
$QGVRLW
VSRVVLEOHWKDWWKHVHZHUHDOOIURP
-XO\DQGWKDWPD\EHLW
VDILUVWSDUWDVHFRQG
SDUWDQGDWKLUGSDUW0D\EHLW
VWKUHHFRSLHV
RIWKHVDPHWKLQJ:HGRQ
WNQRZ:H
YHQHYHU
VHHQLW%XWLQWKHH[WRUWLRQLVW
VHIIRUWWRWU\
WRJHWPRQH\DQGDVPXFKPRQH\DVSRVVLEOHDQGWR
VFDUH0U%ROOHDLQWRWKLQNLQJWKDWKLVOLIHLV
JRLQJWRFRPHWRDVFUHHFKLQJKDOWLIKHGRHVQ
W
SD\WKHPRIILWPDNHVDOOWKHVHDOOHJDWLRQVDERXW
ZKDWDUHLQWKHVHYDULRXVWDSHV$QGDJDLQZH
UHGDFWHGRXWDIHZZRUGVRXWRIKHUHEDVHGXSRQ
WKHSULRUUXOLQJ
7KLVDFWXDOO\IDOOVZLWKLQ-XGJH&DPSEHOO
V
SURWRFROWKDWWKHVHWKLQJVDFWXDOO\VKRXOGEH
JRLQJWR\RXWRGHWHUPLQHLIDQ\RIWKHVHZRUGV
DUHUHOHYDQWWRWKHFDVHEHFDXVH,PHDQWKHUH
LVDORWRIJUDSKLFZRUGVKHUH,
PDERXWWRUHDG
LWEXWKH
VW\SLQJWKLVLQ&DQZHJRRIIWKH
UHFRUGRQHVHFRQGVR,FDQVD\VRPHRIWKHVH
ZRUGV
-8'*(&$6(,WKLQNWKHUHFRUGFDQVWDQGLW
-XGJH&DPSEHOOPD\QRWOLNHLWWKRXJK
&RQILGHQWLDO
05+$5'(52ND\
-8'*(&$6($OOULJKW:H
OOJRRYHUWKH
UHFRUG
'LVFXVVLRQRIIWKHUHFRUG
05+$5'(56RDFFRUGLQJWR-XGJH&DPSEHOO
V
SURWRFROWKLVGRFXPHQWDFWXDOO\VKRXOGEHJRLQJ
WR\RXEHFDXVHLWUHODWHVWRVRFDOOHGRWKHU
WDSHVIRU\RXWRGHWHUPLQHZKHWKHUDQ\RIWKLVLV
UHOHYDQWLIWKHUHLVVRPHWKLQJWKDWPLJKWEH
UHOHYDQWDQGGLVFRYHUDEOH%XWRWKHUZLVHWKH
WKLQJVWKDW,MXVWUHDGDUHWKLQJVWKDWVKRXOGQ
W
EHSDUWRIWKHUHFRUG
6RZKHQZHUHGDFWHGRXWILYHZRUGVZH
DFWXDOO\DFFRUGLQJWR-XGJH&DPSEHOO
VSURWRFRO
ZHSUREDEO\VKRXOGKDYHVXEPLWWHGWKHZKROHWKLQJ
WR<RXU+RQRUZLWKRXWVHQGLQJLWRYHUWRWKHPOHW
<RXU+RQRUGHFLGHZKDW
VUHOHYDQWDQGZKDW
VQRW
DQGWKHQSURGXFHWRDOOSDUWLHVWKRVHWKLQJVWKDW
DUHUHOHYDQW:HZRXOGVXEPLWWKDWWKHILYHZRUGV
WKDWZHUHPRYHGWKDWSHUWDLQWRUDFHWKDWWKRVH
WKLQJVDUHQRWUHOHYDQWWRWKHFDVHDQGVKRXOGEH
UHGDFWHGRXWDQG*DZNHUVKRXOGQRWKDYHWKDW
-XVWWRIROORZWKDWWKURXJK<RXU+RQRUZH
ZRXOGUHTXHVWWKDW*DZNHUQRWKDYHSRVVHVVLRQRI
ZKDWWKH\KDYHDQGLQVWHDGKDYHSRVVHVVLRQRI
&RQILGHQWLDO
ZKDW\RXGHWHUPLQHIURPWKDWWREHUHOHYDQWWRWKH
FDVH
$QGP\VWDIIKDVUHYLHZHGWKHPLQXWHWDSH
WKDWFDPHIURP*DZNHUWRXVZKLFKLVZKDWWKH\
UHFHLYHGIURPDQDQRQ\PRXVVRXUFH$QGP\VWDII
UHSRUWVEDFNWRPHWKDWWKH\EHOLHYHWKDW7DSH
1RLVZKDWLVLQUHODWLYHJHQHUDOWHUPV
DSSHDUVWREHGHVFULEHGDV7DSH1RQRWWRVD\
WKDWWDSHQRWWRVD\WKDWWKHH[WRUWLRQLVW
V
UHSUHVHQWDWLRQVDUHDFFXUDWHRIWKHWDSHWKDWZH
UHFHLYHGIURP*DZNHUEXWMXVWWRVD\WKDWRIWKH
VRFDOOHG7DSH7DSHDQG7DSHZKDW*DZNHU
SURYLGHGWRXVDSSHDUVWREHDORQJWKHOLQHVRI
7DSHDQGQRWRI7DSHDQG
6RWKHUHIRUHWKHGHVFULSWLRQRI7DSHDQG
WKHGHVFULSWLRQRI7DSHZRXOGIDOOZLWKLQWKDW
SURWRFROWKDW<RXU+RQRUVKRXOGUHFHLYHVKRXOG
UHGDFWRXWWKLQJVWKDWDUHQRWUHOHYDQWWRWKH
FDVHWKHRRKVDQGDDKVDQGWKH)ZRUGVDQGDOORI
WKDWDQGWKHUDFLDOWHUPVZHZRXOGVXEPLWDQG
WKHQSURYLGHWKHSDUWLHVZLWKDUHGDFWHGYHUVLRQ
VRWKDWEHFDXVHRXUFRQFHUQZDVWKDW*DZNHU
FRXOGHQGXSSRVWLQJWKLVDQGJHWWLQJVRPHPLOHDJH
RXWRILW$QG-XGJH&DPSEHOOZDVVHQVLWLYHWR
WKDWLVVXHDQGWKDW
VZK\WKDWSURWRFROFDPH
&RQILGHQWLDO
DERXW
6R,WKLQN,PD\KDYHFRYHUHGWKLVEXWMXVW
WRPDNHVXUHWKDW,KDYHIXOO\FRYHUHGLW
0U%HUOLQZDQWHGWKHUHWREHFHUWDLQ
GHWHUPLQDWLRQVPDGHE\DFRXUWDVWRFHUWDLQRI
ZKDWKHFDOOVIDFWV+HZDQWVWKHUHWREHD
GHWHUPLQDWLRQWKDWWKHUHH[LVWVWKUHHWDSHV
:HOO,ZRXOGVXEPLW<RXU+RQRUXQWLOZHKDYH
VHHQWKUHHWDSHVWKHUHVKRXOGQRWEHD
GHWHUPLQDWLRQWKDWWKHUHDUHWKUHHWDSHV
0U%HUOLQDOVRDVNHGIRUWKHUHWREHD
GHWHUPLQDWLRQWKDWWKHUHZHUHLQIDFWIRXU
HQFRXQWHUVZLWK0U%ROOHDDQG0V&OHPDQGQR
GLIIHUHQWWKDQIRXUHQFRXQWHUV:HOOP\
XQGHUVWDQGLQJRIWKHHYLGHQFHDVLW
VEHHQ
SUHVHQWHGVRIDULVWKDWWKHUHZHUHEHWZHHQWKUHH
DQGIRXUEXW,GRQ
WVHHZK\WKHUHVKRXOGEHD
GHWHUPLQDWLRQWKDWWKHUHZDVIRXUDQGQRWWKUHHWR
IRXU
%XW,JXHVVP\PDLQSRLQWLV,GRQ
WVHHZK\
WKHUHVKRXOGEHDGHWHUPLQDWLRQDVWRIDFWXDO
LVVXHVZKHQWKHDFWXDOHYLGHQFHWKDW
VSUHVHQWHG
DWWKHWULDOWKDWZLOOEHDURXWWKHIDFWV,
GRQ
WWKLQN<RXU+RQRUVKRXOGEHGHFLGLQJZKDWWKH
IDFWVDUHRUDUHQRWEDVHGXSRQDSUHFOXVLRQRUGHU
&RQILGHQWLDO
RUUHYHUVHSUHFOXVLRQRUGHUKRZHYHULWZDV
GHVFULEHG
7KHZKROHFRQFHSWRIDWULDOLVWKDW\RXOHW
HYHU\RQHSUHVHQWWKHFRPSHWHQWHYLGHQFHWKDWLV
UHOHYDQWWRWKHFODLPVDQGGHIHQVHVDQG\RXOHW
WKHMXU\GHFLGHZKDWWKHIDFWVDUHDQGWKHQ\RX
DSSO\WKHODZWKDWWKHMXGJHVD\VWKDWWKLVLV
WKHODZDQGWKHQWKHMXU\PDNHVDGHFLVLRQ6R,
GRQ
WVHHDQ\UHDVRQZK\WKHUHVKRXOGEHDQ\
FKDQJHRIWKHQRUPDOFRXUVHRIEXVLQHVVIRUD
FRXUW7KHUHFHUWDLQO\LQP\YLHZKDVQRWEHHQ
DQ\VKRZLQJWKDWZRXOGZDUUDQWDQ\WKLQJOLNHWKDW
,GRQ
WPHDQWREHDWDGHDGKRUVHEXW
0U%HUOLQZDVWDONLQJDERXWWKLVVFDUHFURZZD\RI
SUHVHQWLQJWKHIDFWVZKHUHZHSRLQWWRRQHZD\
DQGWKHQZHSRLQWWRDQRWKHUDQGZHSRLQWWR
DQRWKHU$QGWKHH[DPSOHKHJDYHRUWKH
IDFWXDOVFHQDULRWKDWKHFRQQHFWHGWKDWWRZDV
WKDWZHPDGHDQHVWLPDWHZKHQZHILUVWILOHGWKH
FDVHZKLFKZDVMXVWDIHZGD\VDIWHUWKHVH[WDSH
FDPHRXWWKDWLWZDVLQRUDERXW$QGWKHQ
ODWHURQWKHIDFWVDVEHVWWKH\FRXOGEH
UHFROOHFWHGZDVWKDWLWZDVLQRUDERXW$QG
LWWXUQVRXWZHZHUHQRWIXOO\DFFXUDWHEHFDXVHLW
WXUQVRXWWKDWLWZDVLQPLG
&RQILGHQWLDO
$QGWKHOHWWHUIURPWKH$86$WKDWLGHQWLILHG
WKHH[WRUWLRQLVW
VODEHORIWKHWDSHZKLFKVDLG
-XO\RIWKDWFDPHRXWPXFKODWHURQLQWKH
FDVH0U%HUOLQLVPDNLQJLWVRXQGOLNHZHKDG
WKDWHYLGHQFHVLWWLQJWKHUHDWWKHWLPHZHZHUH
GUDIWLQJWKHFRPSODLQWDQGZHZHUHLQWHQWLRQDOO\
WU\LQJWRPLVOHDGWKHPDVWRWKHGDWHRIWKH
HQFRXQWHU
,W
VZURQJRQERWKOHYHOV)LUVWZHQHYHU
LQWHQWLRQDOO\WULHGWRPLVOHDGDQ\ERG\:HZHUH
QRWDFWXDOO\LQDFFXUDWHZKHQZHVDLGLQRUDERXW
EHFDXVHLVSUHWW\FORVHWRZKHQ\RX
UH
JRLQJEDFNILYHRUVL[\HDUV,PHDQLW
VQRW
IDURII$QGZHGLGQ
WKDYHWKH$86$
VOHWWHU
DQGZHGLGQ
WKDYHWKHHYLGHQFHWKDWWKH$86$KDG
DWWKHWLPHRIGUDIWLQJWKHFRPSODLQW
2QHWKLQJDERXWWKH$86$
VOHWWHULVWKDWLW
ZHQWWR'DYLG+RXVWRQDQG'DYLG+RXVWRQ'DYLG
+RXVWRQLV0U%ROOHD
VSHUVRQDODWWRUQH\DQGKH
KDQGOHGWKH)%,LVVXHDQGWKDWZDVNLQGRIKLV
UROHLQWKLV
7HFKQLFDOO\KH
VFRXQVHORIUHFRUGVRWKDW
KHFDQUHFHLYH(ILOLQJVDQGVRWKDWKHFDQVWD\
XSWRVSHHGRQZKDW
VKDSSHQLQJ%XWKHLVQRW
KHLVQRWDVVLVWLQJPHLQWKHOLWLJDWLRQ+HLV
&RQILGHQWLDO
QRW,PHDQPD\EHH[FHSWIRUPD\EHVPDOO
WKLQJV+HZDVDWWKHGHSRVLWLRQ:HGLGWDON
EHIRUHWKHGHSRVLWLRQDQGGXULQJEUHDNVLQWKH
GHSRVLWLRQDIWHUWKHGHSRVLWLRQ6RKH
VQRW
FRPSOHWHO\RXWRIWKHORRSDQG,GRQ
WPHDQWR
LPSO\WKDWKHLV%XWKHLVKHLVDFULPLQDO
GHIHQVHDWWRUQH\DQGVRKH
VQRWLQYROYHGLQWKH
FLYLODVSHFWVRILW$QGKH
VQRWLQYROYHGLQD
JUHDWGHDORIWKLQJV
%XWZKHQWKHUHLVLQIRUPDWLRQWKDWZHWKLQN
KHPD\KDYHWKDW
VUHVSRQVLYHWRGLVFRYHU\WKHQ
ZHJRWRKLP6RLIWKH\DVN3URYLGHXVZLWK)%,
FRPPXQLFDWLRQVKH
VWKHJX\WKDW,JRWR,I
WKH\GRQ
WDVNIRUFRPPXQLFDWLRQVZLWKODZ
HQIRUFHPHQWWKHQ,GRQ
WQHFHVVDULO\JRWRKLP
DQGVD\*LYHPHDOO\RXUODZHQIRUFHPHQW
FRPPXQLFDWLRQVEHFDXVHWKH\
UHQRWLQWKH
GLVFRYHU\2QFHWKH\ZHUHLQWKHGLVFRYHU\,
DEVROXWHO\GLGWKDW
3ULRUWRWKHPDVNLQJIRUWKHODZHQIRUFHPHQW
FRPPXQLFDWLRQWKH\MXVWVDLG$OOGRFXPHQWV
UHJDUGLQJWKHVH[YLGHR:HOOIURPRXU
SHUVSHFWLYHWKHVH[YLGHRZDVWKHWKLQJWKDWWKH\
SRVWHGXSWRWKH,QWHUQHWDQGPD\EHDOVRLI\RX
WDNHLWDVWHSIXUWKHULW
VWKHPLQXWHYHUVLRQ
&RQILGHQWLDO
WKDWWKH\GLGQ
WSRVWEXWWKDW
VWKHVRXUFHIURP
ZKHUHWKH\JRWWKHVPDOOHUYHUVLRQ%XWWKH\GLG
QRWSURSRXQGDUHTXHVWIRU)%,FRPPXQLFDWLRQV
$QGWKDW
VZK\ZHGLGQ
WSURYLGH)%,
FRPPXQLFDWLRQV
$QGDOWKRXJKKHTXRWHGQXPHURXVWKLQJVIURP
PHDQGIURPRWKHUV,GRQRWEHOLHYHWKDWDQ\RI
WKDWVKRZVWKDW,ZDVEHLQJQRWIRUWKFRPLQJZLWK
WKH&RXUWZLWKUHJDUGWRLQIRUPDWLRQWKDWZHKDG
LQRXUSRVVHVVLRQFHUWDLQO\QRWZLWKUHJDUGWR
LQIRUPDWLRQWKDWWKH\KDGDVNHGIRULQGLVFRYHU\
FHUWDLQO\QRWWKHUHLVFHUWDLQO\QRWDQ\FRXUW
RUGHUWKDWZHKDYHYLRODWHGLQP\RSLQLRQZLWK
WKHRQO\SRVVLEOHH[FHSWLRQRIWKHPDWWHUVZKHUH
ZHKDYHDPRWLRQIRUSURWHFWLYHRUGHUVHWIRUWKLV
KHDULQJ$QGLI<RXU+RQRUKDVDQ\WKRXJKWRQ
ZKDW,MXVWVDLG,
PKDSS\WRDGGUHVVWKDW
2QHRWKHUWKLQJ:KHQWKH)%,JRWLQYROYHG
WKH\WROG0U%ROOHDDQG0U+RXVWRQ8QGHUQR
FLUFXPVWDQFHVFDQ\RXWDONDERXWWKLVWRDQ\RQH
$QGZHKDGWRIROORZWKDWEHFDXVHLWFRXOG
MHRSDUGL]HWKHLQYHVWLJDWLRQ
$QGWKHLQYHVWLJDWLRQZDVYHU\LPSRUWDQWWR
0U%ROOHD+HZDQWHGWKHH[WRUWLRQLVWLQMDLO
IRUZKDWWKDWH[WRUWLRQLVWZDVGRLQJ$QGWKH
&RQILGHQWLDO
ODVWWKLQJWKDWZHZDQWHGWRGRZDVJRDJDLQVW
ZKDWWKH)%,KDGVDLG$QGWKDW
VZK\LQSDUW
ZHZHUHUHVLVWLQJWKHGLVFRYHU\DVWRWKH)%,
EHFDXVHZHZHUHWU\LQJWRFRPSO\ZLWKWKH)%,
V
LQVWUXFWLRQ$QGZKHQZHUHVHDUFKHGWKHODZDQG
LWVKRZHGWKDWWKHUHZDVDODZHQIRUFHPHQW
SULYLOHJHRXWWKHUHDQGWKDWLWGLUHFWO\DSSOLHG
WRWKLVVLWXDWLRQZHZHUHWU\LQJWRIROORZWKH
)%,
VLQVWUXFWLRQVWRXV
,WZDVQ
WXQWLODIWHUWKH\SURSRXQGHGWKHLU
GLVFRYHU\UHJDUGLQJODZHQIRUFHPHQWFRPPXQLFDWLRQV
WKDWVRPHRIWKHWKLQJVWKDW0U%HUOLQPHQWLRQHG
EHFDPHDSSDUHQW,WZDVQHYHUDSSDUHQWWRXV
EHIRUHZHSURSRXQGHGGLVFRYHU\UHJDUGLQJODZ
HQIRUFHPHQWWKDW*DZNHUZDVDEVROXWHO\QRWEHLQJ
LQYHVWLJDWHGE\WKH)%,:HGLGQ
WNQRZWKDW:H
GLGQ
WNQRZLIWKH\ZHUHZHGLGQ
WNQRZLIWKH\
ZHUHQ
W
$SSDUHQWO\0U%HUOLQUHFHLYHGD
FRPPXQLFDWLRQZHOODIWHUDOORIWKLVGLVFRYHU\
)%,GLVFRYHU\LVVXHZDVRXWIURPVRPHERG\LW
PLJKWKDYHEHHQWKH$86$VD\LQJ*DZNHULVQRW
SDUWRIRXULQYHVWLJDWLRQ
2ND\$WWKDWSRLQWZHOHDUQHGLW:KHQ
0U%HUOLQZDVPDNLQJKLVSUHVHQWDWLRQDQGKHZDV
&RQILGHQWLDO
JLYLQJDOONLQGRITXRWHVKHPDGHLWVRXQGDVLI
ZHDOUHDG\NQHZWKDWEDFNDWWKH2FWREHUWK
KHDULQJ+HZDVTXRWLQJKHDYLO\IURPPHIURPWKH
2FWREHUWKKHDULQJ:HOO,GLGQ
WKDYHDQ\RI
WKHLQIRUPDWLRQODZHQIRUFHPHQWIURP)HEUXDU\RU
0DUFKRU$SULOZKHQHYHUWKHVHWKLQJVRIWKLV
\HDUZKHQWKHVHWKLQJVZHUHKDSSHQLQJ6RDORW
RILWLVMXVWWDNLQJWKLQJVFRPSOHWHO\RXWRI
FRQWH[WSDUWLFXODUO\ZKHQLWFRPHVWRWKH\HDUV
RIHYHU\WKLQJ
0\QH[WSRLQWLVWKDWWKHUHKDVEHHQQR
SUHMXGLFHWR*DZNHUKHUH7KH\
YHUHFHLYHGRQH
WKLQJWKDWWKH\VD\LVWKH\VSHQWDZKROH\HDU
OLWLJDWLQJDQGWU\LQJWRXQFRYHUWKHIDFWVDQGDOO
WKLVVWXII:KHQWKH\DVNHGXVIRUDOOGRFXPHQWV
UHODWLQJWRWKHVH[WDSHWKDWWKH\SRVWHGZH
SURYLGHGLW$PRQJWKHWKLQJVWKDWZHSURGXFHG
ZHUH0U%ROOHD
VWH[WV(YHU\WKLQJWKDWKHKDG
ZHSURGXFHG
7KH\SURSRXQGHGLQWHUURJDWRULHVDQGZH
UHVSRQGHGWRDOORILW7KH\EURXJKWDPRWLRQWR
FRPSHORQDOONLQGVRIWKLQJVHYHU\WKLQJWKDW
WKH\HYHU\WKLQJYLUWXDOO\HYHU\WKLQJWKDW
WKH\KDGSURSRXQGHGWRXVWKH\EURXJKWDPRWLRQ
WRFRPSHODQGLWZDVKHDUGRQ2FWREHUWK
&RQILGHQWLDO
-XGJH&DPSEHOOLI\RXWDNHDORRNDWWKDW
RUGHUDQG,WKLQNLW
VULJKWKHUH
-XGJH&DPSEHOORUGHUHGWZRWKLQJV
:HOOVKHRUGHUHGDIHZWKLQJVEXWLQWHUPV
RIWKHPRWLRQWRFRPSHOVKHRUGHUHGDIXUWKHU
UHVSRQVHWR,QWHUURJDWRU\1R7KDW
V
QXPEHULWHP1R$QGVKHRUGHUHGDSULYLOHJH
ORJRIDOOGRFXPHQWDVWRZKLFKKHFODLPV
SULYLOHJHRWKHUWKDQWKRVHGRFXPHQWVFUHDWHGDIWHU
WKLVOLWLJDWLRQZDVILOHG
$QGZHGLGQ
WKDYHDQ\WKLQJ7KHODZ
HQIRUFHPHQWWKLQJFDPHLQ7KH\ZHUHQRW
UHVSRQVLYHWRSULRUGLVFRYHU\$QGDOVRZKHQZH
VHQWWKHPDSULYLOHJHORJDVWRODZHQIRUFHPHQW
WKRVHFRPPXQLFDWLRQV,EHOLHYHWKH\ZHUHHLWKHU
DOORUDOPRVWDOODIWHUWKHODZVXLWZDVILOHG
7KHODZVXLWZDVILOHG2FWREHUWK$QG,GRQ
W
KDYHWKHSULYLOHJHORJLQIURQWRIPH,WZRXOG
UHDOO\VXUSULVHPHLIWKHUHLVDQ\WKLQJWKDW
VRQ
WKHUHIURPSULRU,PHDQLWZRXOGPD\EHEHRQH
WKLQJRUWZRWKLQJV%XW,
PSUHWW\VXUHDOORI
WKHFRPPXQLFDWLRQVZHUHDIWHU2FWREHUWKRI
%XWDJDLQ\RXJLYHDSULYLOHJHORJDVWR
UHVSRQVLYHFDWHJRULHV<RXGRQ
WJLYHDSULYLOHJH
&RQILGHQWLDO
ORJDVWRHYHU\WKLQJXQGHUWKHVXQ,IWKH\DVN
\RXIRUFHUWDLQWKLQJVWKHQ\RXJLYHDSULYLOHJH
ORJDVWRZKDWWKH\DUHDVNLQJIRU6RZH
YH
IXOO\FRPSOLHGZLWKWKLVRUGHUDQGZLWKDOORWKHU
RUGHUV
%XWLQWHUPVRIWKHSUHMXGLFHWKH\WDON
DERXWKRZWKH\KDYHKDGWRVSHQGVRPXFKWLPHDQG
VRPXFKHQHUJ\DQGVRPXFKUHVRXUFHVDQGDOORI
WKDW:KHQWKH\JDYHXVUHTXHVWVDVWRWKHODZ
HQIRUFHPHQWZHILUVWUHVLVWHGLWEDVHGRQWKH
SULYLOHJH<RXU+RQRUGLVDJUHHG7KH\DOVRDVNHG
IRUVDQFWLRQVDQG\RXGHQLHGWKHLUUHTXHVWIRU
VDQFWLRQV7KDWZDVDVWRWKHLUPRWLRQWRFRPSHO
DQGIRUVDQFWLRQV7KH\GLGQ
WJHWLW
,WZHQWWRWKHMXGJH-XGJH&DPSEHOODJUHHG
ZLWK<RXU+RQRU,WZDVSUHWW\PXFKMXVWWR
VXEPLWHYHU\WKLQJWR-XGJH&DPSEHOOWKDWKDG
DOUHDG\EHHQOLWLJDWHG$QGWKHQZHSURGXFHGLW
7KHUHZDVWKH\GLGQ
WKDYHWRGRDQ\WKLQJRWKHU
WKDQPD\EHVHQGDPHHWDQGFRQIHUOHWWHUVD\LQJ
:KHQDUHZHJRLQJWRJHWWKLVVWXII":HSURPSWO\
JDYHWKHPWKHODZHQIRUFHPHQWFRPPXQLFDWLRQV7KH
RQO\H[FHSWLRQLVWKHILYHZRUGVDQGWKHSUHIL[HV
DQGZHKDYHDPRWLRQIRU<RXU+RQRUDVWRWKDW,
EHOLHYHLW
VDPHULWRULRXVPRWLRQ
&RQILGHQWLDO
%XWRWKHUZLVHDOORIWKHPRQH\WKDWWKH\
KDYHVSHQWRQWKHOLWLJDWLRQWKDW
VRQWKHLURZQ
GLPH,WKDVQRWKLQJWRGRZLWKFRQFHDOPHQWRI
HYLGHQFHRUIDLOXUHWRIROORZFRXUWRUGHUV
7KDW
VDOOGUXPPHGXS,W
VILFWLWLRXV7KHUH
LVWKHUHLVQREDVLVLQP\YLHZIRUPRQHWDU\
VDQFWLRQV
,PHQWLRQHGWKDWWKHVHLVVXHVJRWR
FROODWHUDOLVVXHV$QG0U%HUOLQNLQGRIVFRIIHG
DWWKDW%XWWKHLVVXHVWKDWDOORIWKLVPRWLRQ
WKDW
VEHIRUH<RXU+RQRUGHDOVZLWKDUHWKHQXPEHU
RIVH[WDSHV$QGZHGRQ
WNQRZWKHDQVZHUEXW
ZHSURGXFHGWKHLQIRUPDWLRQWKDWZHKDGZKLFKLV
WKHH[WRUWLRQLVW
VFODLPWKDWWKHUHLVPRUHWKDQ
RQHVH[WDSH0D\EHLW
VWUXHPD\EHLW
VQRW
:HGRQ
WNQRZ,W
VFROODWHUDOWRWKHLVVXHVRI
ZKDWWKH\GLGWKRXJKEHFDXVHWKH\RQO\KDGRQH
VH[WDSHDQGWKH\HGLWHGLWDQGWKH\SRVWHGLW
XSWRWKH,QWHUQHW7KH\GLGQ
WHGLW7DSH1R
DQGWKH\GLGQRWHGLW7DSH1RLIWKRVHWDSHV
H[LVW6RDJDLQFROODWHUDO
7KHGDWHRIWKHHQFRXQWHUVZH
YHJLYHQWKHP
DOOLQIRUPDWLRQWKDWZHKDYHUHJDUGLQJWKHGDWHRI
WKHHQFRXQWHUV0U%ROOHDWHVWLILHGIRUWZRGD\V
ZKHUHWKH\GULOOHGKLPZLWKTXHVWLRQV'LGLW
&RQILGHQWLDO
KDSSHQEHIRUHWKLVRUDIWHUWKLV":DVWKHUH
ZDVLWWZRZHHNVEHWZHHQWKHILUVWDQGWKHVHFRQG
RUZDVLWWKUHHZHHNV"
,GRQ
WUHFDOO,GRQ
WUHFDOO+HGLGQRW
UHFDOOVH[XDOHQFRXQWHUVDQGWKHGDWHVRIWKHP
+HHYHQPDGHDVWDWHPHQW
$QGWKH\DVNHGKLP:KDWDERXW\RXU
FDOHQGDUVZRXOG\RXUFDOHQGDUVUHIOHFWLW"
+HVDLG:HOO,GRQ
WSXWDVWDURQP\
FDOHQGDUHYHU\WLPH,KDGDQHQFRXQWHUZLWK
+HDWKHU&OHP7KDW
VYLUWXDOO\ZKDWKHVDLG
6RZKHQWKH\
UHVD\LQJ+HGHVWUR\HGKLV
FDOHQGDUKH
VWU\LQJWRVSROLDWHHYLGHQFHWKDW
V
QRWWKHFDVH+LVFDOHQGDUIURPGRHVQ
WKDYH
DQ\WKLQJDERXW+HDWKHUDQGKHJHWVULGRIKLV
FDOHQGDUVHYHU\\HDU6RE\KHKDGJRWWHQ
ULGRILW7KLVFDVHZDVILOHG2FWREHURI
VRKHGLGQ
WKDYHFDOHQGDUVIURPWKRVHSULRU
\HDUV$QGWKH\GLGQ
WSURSRXQGDGRFXPHQW
UHTXHVWLQRUHDUO\DVNLQJIRUKLV
FDOHQGDUVIRU7KH\ZDLWHGDQHQWLUH\HDU
(YHQVR,GRQ
WWKLQNKLVFDOHQGDUZRXOG
KDYHDQ\WKLQJWKDWZRXOGEHUHOHYDQWWRLW%XW
LQDQ\HYHQWWKH\DOUHDG\KDYHWKHPHGLDWRXU$
ORWRIWKHVHWKLQJVDUHMXVWUHSHDWV,
PWU\LQJ
&RQILGHQWLDO
WRPRYHWKURXJKLWKHUH
7KHUHLVQRWULDOGDWHLQWKLVFDVHZKLFK
DFWXDOO\LVDQLVVXHWKDW,
PFRQFHUQHGZLWK
EHFDXVHZHZRXOGOLNHWRJHWWKHFDVHRQIRU
WULDO%XWLI*DZNHULVVD\LQJWKDWWKH\DUH
VRPHKRZSUHMXGLFHGEHFDXVHWKH\
UHOHDUQLQJRIWKH
)%,FRPPXQLFDWLRQVODWHLQWKHJDPHZHOOSDUWRI
WKDWLVEHFDXVHWKH\ZDLWHGPRUHWKDQD\HDUWR
DVNXVIRUWKH)%,FRPPXQLFDWLRQVDQGWKHQLW
WRRNDERXWWZRRUWKUHHPRQWKVWRJRWKURXJKWKH
OLWLJDWLRQSURFHVV$QGWKHQZHSURYLGHGWKHPWR
WKHP%XWWKHUHLVVWLOOQRWULDOGDWH6RWKH
IDFWWKDWWKH\KDYHWKH)%,FRPPXQLFDWLRQVDVRI
0D\ZKLFKLVZKHQZHSURGXFHGWKHPDVRSSRVHGWR
DVRIDPRQWKRUWZRRUWKUHHRUVL[PRQWKVSULRU
WRWKDWSDUWRILWLVEHFDXVHWKH\GLGQ
WDVNIRU
WKHPVRRQHU$QGWKHUHLVQRSUHMXGLFHDVWRDQ\
VRFDOOHGGHOD\LQWKLVEHFDXVHWKHUHLVQRWULDO
GDWH7KH\VWLOOFDQFRQGXFWGLVFRYHU\UHJDUGLQJ
WKHVHWKLQJV
2QHRIWKHWKLQJVWKDWWKH\DVNLVIRU
0U%ROOHDWRVKRZXSIRUDQRWKHUGHSRVLWLRQ<RX
NQRZZKDW-XGJHLI\RXWKLQNWKDW
VDSSURSULDWH
WKDW
VILQHZLWKPHMXVWWRDQVZHUTXHVWLRQV
DERXWWKHGLVFRYHU\LVVXHVWKDWZHUHSHQGLQJDW
&RQILGHQWLDO
WKHWLPHRIKLVGHSRVLWLRQQRWDQ\WKLQJQHZ,I
WKH\SURSRXQGHGVRPHWKLQJDIWHUKLVGHSRVLWLRQ,
GRQ
WWKLQNKHVKRXOGKDYHWRFRPHDQGDQVZHU
TXHVWLRQVDERXWWKDWVWXIIEHFDXVHWKH\ZDLWHG
WRRORQJ7KH\FKRVHWRWDNHKLVGHSRVLWLRQ
EHIRUHWKH\ZHUHILQLVKHG
%XWDVWRWKH)%,FRPPXQLFDWLRQVDVWRWKH
SKRQHUHFRUGVWKRVHZHUHWKHWZRSHQGLQJLVVXHV
ZKLFKKDYHQRZEHHQUHVROYHG,GRQ
WWKLQNLW
VKRXOGWDNHPRUHWKDQWZRKRXUVIRUWKHPWRDVN
KLPDERXWWKHVHWKLQJV%XW,
PQRWRSSRVHGWR
WKDW:H
UHQRWWU\LQJWRKLGHDQ\WKLQJ$QGLI
WKH\IHHOWKDWWKH\KDYHWRJHWWRWKHERWWRPRI
VRPHWKLQJDQGKHFRPHVEDFNIRUDFRXSOHRIKRXUV
WRDQVZHUTXHVWLRQVWKHQRND\
$FRQFHUQWKDW,ZRXOGKDYHDQGPD\EHZH
FDQKDYHDGLDORJXHDERXWWKLV,I\RXZHUH
LQFOLQHGWRGRWKDWZKDWZRXOGEHWKHVFRSH"'R
WKH\JHWWRDVNKLPDQ\WKLQJDERXWWKHH[WRUWLRQ
DWWHPSW"'RWKH\JHWWRDVNKLPDQ\WKLQJDERXW
WKHLUPHHWLQJVZLWKWKH)%,WRWU\WRJHWDWWKH
H[WRUWLRQLVW",ZRXOGVD\WKDW
VNLQGRIEH\RQG
WKHVFRSHRIWKHFDVH
,IWKH\ZDQWWRDVNDERXW:KDWGR\RXNQRZ
DERXWRWKHUVH[WDSHVKHPD\KDYHDOUHDG\
&RQILGHQWLDO
DQVZHUHGWKDWLQKLVGHSRVLWLRQEXWLIWKH\ZDQW
WRDVNKLPDJDLQLQOLJKWRIZKDWWKH\KDYHVHHQ
LQWKHH[WRUWLRQLVW
VUHSRUWDERXW7DSHDQG7DSH
LIWKH\H[LVW,GRQ
WKDYHDSUREOHPZLWK
WKDW,ZRXOGLPDJLQHWKDWKHZRXOGVD\WKH
WUXWKRIFRXUVHEXWWKDWKH
VQHYHUVHHQWKHP
DQGWKDWKHGRHVQ
WNQRZDQ\WKLQJDERXWWKHPDQG
KHGRHVQ
WNQRZLIWKH\H[LVWDQGGRHVQ
WNQRZLI
WKH\GRQ
WH[LVWDQGWKDWKHZDVHYHU\WKLQJ
WKDWKHKDGWHVWLILHGEHIRUH,ZRXOGH[SHFWKLP
WREHFRQVLVWHQWZLWKWKDW%XWLIWKH\ZDQWD
FRXSOHPRUHKRXUVRIDVNLQJDERXWWKDW,
PQRW
JRLQJWRRSSRVHWKDW
7KHUHLVDORWRIFDVHVDQG,
PVXUH<RXU
+RQRULVIDPLOLDUZLWKWKHP'LVFRYHU\VDQFWLRQV
KDYHWREHDSSURSULDWHO\WDLORUHGDQG
SURSRUWLRQDWH,GRQ
WEHOLHYHWKDWWKHUHLVDQ\
UHDVRQWRRUGHUDVDQFWLRQ,KDYHGRQHP\XWPRVW
DQGP\FRFRXQVHOKDVGRQHWKHLUXWPRVWDQG
0U%ROOHDKDVGRQHKLVXWPRVWWRDQVZHUWKHLU
TXHVWLRQVZKHQWKH\DVNWKHLUTXHVWLRQV1RERG\
LVFRQFHDOLQJDQ\WKLQJ%XWLILWWDNHVWKHPD
\HDUDQGWKUHHPRQWKVWRDVNIRU)%,
FRPPXQLFDWLRQVWKHQWKH\FDQ
WH[SHFWWRKDYH
UHFHLYHGWKHPEHIRUHWKDWWLPH
&RQILGHQWLDO
'LVPLVVDO7KH\
UHDVNLQJIRUGLVPLVVDO
$QGWKDW
VZK\,ZDQWHGWRKDYHDQLQSHUVRQ
KHDULQJEHFDXVHZKHQVRPHERG\LVDVNLQJIRUWKH
GLVPLVVDORIDFDVHEDVHGXSRQDZKROHORWRIZKDW
,YLHZLVPLVUHSUHVHQWDWLRQVDQGWDNLQJWKLQJVRXW
RIFRQWH[WDQGWU\LQJWREXLOGDELJWKLQJRXWRI
ZKDWLVYHU\OLWWOHLIDQ\WKLQJDWDOOWKDW
V
ZK\,ZDQWHGWRKDYHDQLQSHUVRQKHDULQJEHFDXVH
,WKLQNLWZDUUDQWVWKDW
$QGWKHUHLVFDVHODZDQGZHFLWHGWRLW
)RUWKHUHWREHDQRUGHURIGLVPLVVDO\RXKDYHWR
VKRZZLOOIXOQHVV<RXKDYHWRVKRZSHUVRQDO
LQYROYHPHQWE\WKHFOLHQWLQWKHYLRODWLRQV<RX
KDYHWRVKRZWKDWOHVVHUVDQFWLRQVZHUHWULHGDQG
GLGQRWZRUN<RXKDYHWRVKRZSUHMXGLFHWRWKH
SDUWLHVVHUYLQJGLVFRYHU\<RXKDYHWRVKRZ
SUHMXGLFHWRWKHMXGLFLDOV\VWHP\RXKDYHWRVKRZ
WKDWWKHUHLVQRUHDVRQDEOHH[SODQDWLRQIRUWKH
SDUWLHV
FRQGXFW
,ZRXOGVXEPLWWR\RX<RXU+RQRUWKDWWKH\
GRQ
WZLQRQDQ\RIWKRVHDQGWKH\KDYHWRZLQRQ
DOORIWKHP,EHOLHYHWKDWZHKDYHDUHDVRQDEOH
H[SODQDWLRQIRUHYHU\WKLQJWKDWZH
YHGRQHDQG,
VWDQGE\LW$QGWDNLQJWKLQJVRXWRIFRQWH[WPD\
PDNHWKLQJVVRXQGMXLF\EXWLI\RXUHDOO\ORRNDW
&RQILGHQWLDO
WKHUHFRUGWKHUHKDVEHHQQRRUGHUWKDWZHKDYH
IDLOHGWRFRPSO\ZLWK
7KHUHKDVEHHQQRFRQFHDOPHQW7KHUHKDV
EHHQQRREIXVFDWLRQ
6KRZLQJWKDWOHVVHUVDQFWLRQVZHUHWULHGDQG
GLGQRWZRUNWKHUHKDYHQ
WEHHQDQ\
6KRZLQJRIDZLOOIXOQHVV,GRQ
WEHOLHYH
WKDWWKH\KDYHVKRZQWKDW,FHUWDLQO\GRQ
W
EHOLHYHWKDWDQ\WKLQJWKDWKDSSHQHGHYHUZDV
ZLOOIXOO\WU\LQJWRNHHSLQIRUPDWLRQWKDW
V
UHOHYDQWWRWKLVFDVHDQGUHVSRQVLYHWRWKHLU
GLVFRYHU\ZHQHYHUZLOOIXOO\RUXQZLOOIXOO\WULHG
WRNHHSLQIRUPDWLRQIURPWKHP
3HUVRQDOLQYROYHPHQWIURPWKHFOLHQWWKH\
KDYHDEVROXWHO\QRWVKRZQWKDW
3UHMXGLFHWRWKHPWKHUHKDVEHHQQR
SUHMXGLFHWRWKHP,ILWWDNHVDOLWWOHORQJHU
IRUWKHPWRJHWLQIRUPDWLRQEHFDXVHWKH\ZDLWD
\HDUDQGWKUHHPRQWKVWRSURSRXQGLWWKDW
VRQ
WKHP,IWKH\KDYHWREULQJDPRWLRQWRJHW)%,
FRPPXQLFDWLRQVWKDWZHOHJLWLPDWHO\RSSRVHGEDVHG
XSRQWKHFDVHODZDQG<RXU+RQRUKHDUGWKDW
PRWLRQVLGHGZLWKWKHPEXWGLGQRWVLGHRQ
VDQFWLRQVWKDWLVVXHKDVDOUHDG\EHHQGHFLGHG
:H
YHSURGXFHGWKH)%,FRPPXQLFDWLRQV7KH\
&RQILGHQWLDO
FDQ
WVD\WKDWZHKDYHQ
WSURGXFHGLW:H
UHGDFWHGRXWILYHZRUGV
$VIDUDVWKHSKRQHUHFRUGV,GRQ
WNQRZLI
\RX
YHVHHQWKHSKRQHUHFRUGVEXWLW
VSDJHVDQG
SDJHVDQGSDJHVDQGSDJHVRISKRQHQXPEHUVZLWK
WKHDUHDFRGHDQGWKHODVWIRXUGLJLWVEHFDXVH
WKHVHDUHSHRSOHWKDWZHUHQRWSDUWLHVWRWKHFDVH
DQGWKH\DUHQRWZLWQHVVHVRIWKHFDVH$QGLI
DQGWKHLUZKROHEDVLVIRUVHHNLQJWKHSKRQH
UHFRUGVZDVEHFDXVHWKH\VDLG:HZDQWWRNQRZ
ZKHQKHKDGFRPPXQLFDWLRQVZLWKNH\ZLWQHVVHVLQ
WKLVFDVHVXFKDV%XEED&OHPDQG+HDWKHU&OHP
:HOOZHZHQWWKURXJKHYHU\VLQJOHQDPH
WKDW
VHYHUEHHQPHQWLRQHGLQWKLVFDVHLQFOXGLQJ
7RQ\%XUWRQDQGWKH%XFKZDOG$JHQF\DQG*DZNHU
LWVHOIDQGHYHU\ERG\HOVHZHFDQWKLQNRIDQGZH
SXWDOOWKRVHSKRQHQXPEHUVWRJHWKHUDQGZH
XQUHGDFWHGZHGLGQ
WUHGDFWWKRVH:HNHSW
WKRVHLQWDFW$QGHYHU\ERG\HOVHIURPRXUEHVW
GHWHUPLQDWLRQLVDQRQZLWQHVVDQGFHUWDLQO\D
QRQSDUW\$QGLIWKH\ZDQWWRVD\1RWKHUHLVD
SKRQHQXPEHUWKDWPDWFKHVXSZLWKDZLWQHVV,
P
KDSS\WRXQUHGDFWWKDW/LNHWKDW,ZLOOGRLW
%XWWKHUHLVODZLQWKHVWDWHRI)ORULGDWKDW
FRPPXQLFDWLRQVZLWKQRQZLWQHVVHVDQGQRQSDUWLHVLV
&RQILGHQWLDO
SULYDWHDQGLWQHHGVWREHSUHVHUYHGDQGLW
VQRW
GLVFRYHUDEOH$QGZHKDYHDORWRIFDVHVRQWKDW
ZKHUHWKHFRXUWRIDSSHDOVKDVVLGHGZLWKXV
$QG<RXU+RQRULI\RXHYHUPDGHDSKRQH
FDOOWRVRPHERG\DQGWKHQWKHLUSKRQHUHFRUGVZHUH
UHTXHVWHGDQG\RXKDGDEVROXWHO\]HURWRGRZLWK
WKHFDVH\RXZHUHQRWDZLWQHVV\RXZHUHQRWD
SDUW\\RXKDG]HURWRGRZLWKWKHFDVH,ZRXOG
WKLQNWKDW\RXZRXOGWKLQN*HH,GRQ
WVHHZK\
P\SKRQHUHFRUGVKDYHWREHSURGXFHGLQGLVFRYHU\
$QGLILW
VDPHGLDRUJDQL]DWLRQWKDWOLNHVWR
SRVWMXLF\OXULGWKLQJVDERXWSHRSOH,ZRXOG
WKLQNWKDW\RX
GVD\<RXNQRZZKDWLI,KDYHD
SULYDF\ULJKW,
GSUHIHUWRKDYHLWSUHVHUYHG
<RX
UHDQRQSDUW\\RX
UHDQRQZLWQHVVWKHUHLV
QRUHDVRQIRUWKDW
6R,WKLQNWKDWDQGQRZ,
PNLQGRI
JHWWLQJLQWRP\PRWLRQIRUSURWHFWLYHRUGHU%XW
DQDSSURSULDWHPLGGOHJURXQGLVZKDWZHGLGZKLFK
ZDVWRJLYHWKHPDOORIWKHQXPEHUVH[FHSWIRU
WKUHHGLJLWV,IWKH\FRXOGPDWFKWKDWXSWRD
ZLWQHVV,
PKDSS\WRJLYHLWWRWKHP
,W
VEHHQRYHUDPRQWKQRZ7KH\KDYHQ
W
PDWFKHGDQ\WKLQJXSWRDQ\ERG\-XVWORRNDWWKH
ODVWIRXUGLJLWV/RRNDWWKHDUHDFRGHDQGODVW
&RQILGHQWLDO
IRXUGLJLWV<RXFDQPDWFKLWXS
,I<RXU+RQRUGHQLHVWKHPRWLRQIRUWKH
SURWHFWLYHRUGHUDQGVD\V1R,ZDQWWKHZKROH
WKLQJILQHZH
OOGRLW%XW,
PWU\LQJWREH
UHDVRQDEOHKHUH,
PWU\LQJWRGRZKDW
VULJKW
7KDW
VZKDWGULYHVPH7KDW
VZKDWJHWVPHXSLQ
WKHPRUQLQJ$QG,EHOLHYHWKDWZKDWZHGLGZDV
ULJKWDQGEULQJLQJWKHPDWWHUWR\RXIRUDVD
PRWLRQIRUSURWHFWLYHRUGHUZDVWKHULJKWWKLQJWR
GR%XWZH
OOIROORZ\RXURUGHUMXVWDVZH
YH
DOZD\VIROORZHG\RXURUGHUVDVZH
YHDOZD\V
IROORZHG-XGJH&DPSEHOO
VRUGHUV
2QHRIWKHVDQFWLRQVWKDWWKH\DVNHGIRULQ
WKHLUSDSHUVEXW0U%HUOLQGLGQRWPHQWLRQ
DQGPD\EHKHPHQWLRQHGLWNLQGRILQDURXQGDERXW
ZD\WKH\ZDQWWREHDEOHWRFDOO0U%ROOHDD
UDFLVWWRWKHMXU\7KH\ZDQWWREHDEOHWR
SDUDGHDURXQGWKH1ZRUGWRWKHMXU\-XVWVR
LW
VFOHDUWKHUHLVQRFRPSHWHQWHYLGHQFHWKDWKH
HYHUVDLGWKH1ZRUG$OOZHKDYHLVDQ
H[WRUWLRQLVWZKRZULWHVLQDGRFXPHQWVXPPDUL]LQJ
DWDSHWKDWPD\RUPD\QRWH[LVWVD\LQJWKDWLQ
WKDWWDSHWKH1ZRUGLVXVHGLQVRPHRWKHUZRUGV
WKDWDUHULJKWDURXQG\RXNQRZRWKHUUDFLDO
W\SHVRIZRUGVWKDWDUHZLWKLQWKHVDPHFRQWH[W
&RQILGHQWLDO
,W
VLQDSSURSULDWHRQVRPDQ\OHYHOVIRUWKHP
WREHDEOHWRSDUDGHWKH1ZRUGDQGRWKHUW\SHV
RIZRUGVLQIURQWRIDMXU\,PHDQZKDWWKH\
ZDQWLVWRZLQWKHFDVHLQDURXQGDERXWZD\7KH\
ZDQWWREHDEOHWRSRLVRQWKHMXU\RI0U%ROOHD
7KH\ZDQWDILQGLQJ,EHOLHYHWKDWKHVDLG
XQOHVV,ZURWHLWGRZQZURQJWKH\ZDQWDILQGLQJ
WKDWKHXVHGWKHVHZRUGV:HOOWKHUHLVQR
HYLGHQFHWKDWLI,
PPLVVWDWLQJ
05%(5/,1,
PVRUU\-XVWEHFDXVHLWPD\
VDYHXVVRPHWLPH,
PVRUU\WRLQWHUUXSW,
ZDQWWREHFOHDUWKDWDOWKRXJK,KDYHDVNHGIRUD
UHYHUVHSUHFOXVLRQRUGHURQRWKHUWKLQJVWKDWRQ
WKLVVXEMHFW
05+$5'(52ND\
05%(5/,1ZKDWZH
UHDVNLQJIRUWRGD\
LVWKHGLVFRYHU\RIWKHXQUHGDFWHGGRFXPHQWLQ
RSSRVLWLRQWRWKHPRWLRQIRUWKHSURWHFWLYHRUGHU
DQGWKHQUHVHUYLQJIRUDODWHUGDWHZKHWKHUWKDW
LVVXHLVWREHEHIRUHWKHMXU\RUSDUWRIWKH
FDVH
05+$5'(5,DSSUHFLDWHLW
05%(5/,1$QG,ZDQWWREHFOHDUWKDW,
P
DVNLQJIRUDUHYHUVHSUHFOXVLRQRQRWKHUVWXII
%XWRQWKDW,XQGHUVWDQGWKDWWKDW
VDVHQVLWLYH
&RQILGHQWLDO
LVVXHDQGRXUUHTXHVWLQJRQWKDWWRGD\LVPRUH
OLPLWHGDQGWROLYHIRUDQRWKHUGD\RQZKHWKHU
WKDWEHFRPHV
-8'*(&$6(2ND\
05+$5'(5,DSSUHFLDWHLW,DSSUHFLDWH
LW
05%(5/,15DWKHUWKDQKDYH\RXUDWKHU
WKDQKDYLQJ\RXJRRQDERXWWKDW,WKRXJKW,
ZRXOGFODULI\RXUSRVLWLRQ
05+$5'(52ND\,DSSUHFLDWHLW
,SUREDEO\GLGQRWFRYHUHYHU\WKLQJWKDW
0U%HUOLQWDONHGDERXWWRGD\,PHDQKHZHQWRQ
IRUPLQXWHV,WRRNQRWHV,ZDVUHYLHZLQJ
ZKHQ,ZDVWDONLQJVRPHRWKHUQRWHVDQGMXVWD
IHZLWHPVLQKHUH,IHHOOLNH,VKRXOGJRRYHU
MXVWWRPDNHVXUHWKDW,FRYHUHGHYHU\WKLQJ
%XWLI,GLGQ
WFRYHUVRPHWKLQJ-XGJH&DVH
WKDW\RXIHHOQHHGVWREHFRYHUHGDQG,
LQDGYHUWHQWO\RUDFFLGHQWDOO\GLGQRWFRYHULW
SOHDVHIODJPHWRWKDWDQG,
PKDSS\WRGLVFXVV
LW
,PHDQWKH1HZ<RUNSXEOLFLVWLW
V
LQWHUHVWLQJEHFDXVHWKH\ZDQWHGGRFXPHQWVRIWKH
1HZ<RUNSXEOLFLVW7KH\FKRVHWRJRWR1HZ<RUN
WRJHWWKRVHGRFXPHQWVZKHQWKH\SUREDEO\FRXOG
&RQILGHQWLDO
KDYHJRQHWR<RXU+RQRUWRJHWWKRVHGRFXPHQWV
%XWZKDWHYHUWKHFDVHPD\EHWKH1HZ<RUN
SXEOLFLVWSURGXFHGDSULYLOHJHORJDVWR,
WKLQN\RXVDLGWKDWP\ILUPUHSUHVHQWVWKH
SXEOLFLVW7KHSXEOLFLVWLVWKDWZKDW\RX
VDLGEHFDXVHWKHSXEOLFLVWKDVDQDWWRUQH\"7KH
SXEOLFLVWKDVDVHSDUDWHDWWRUQH\
05%(5/,10\XQGHUVWDQGLQJLVWKH
SXEOLFLVWKDVERWKD1HZ<RUNODZ\HUDQGWKDW\RXU
ILUPKDVDOVRDSSHDUHGLQWKHSURFHHGLQJV
05%(55<0DWWKHZ%ODFNHWWILOHGSDSHUV
05+$5'(52KKHILOHGSDSHUV2ND\
05%(55<,PD\EHPLVWDNHQEXWKH
V
06',(75,&.<HDKWKDW
VULJKW
05+$5'(5:HOOP\XQGHUVWDQGLQJLVWKDW
WKHSXEOLFLVWKDVDVHSDUDWHFRXQVHODQG,GRQ
W
NQRZLI0DWWKHZ%ODFNHWWPD\KDYHVHQW\RXVRPH
GRFXPHQWVEXW
05%(55<+H
VRQWKHSOHDGLQJV
05+$5'(5+H
VRQWKHSOHDGLQJVRQEHKDOI
RIWKHSXEOLFLVW"
05%(55<1RGVDIILUPDWLYHO\
05%(5/,17KDW
VFRUUHFW7KDW
VP\
XQGHUVWDQGLQJ
05+$5'(57KDW
VQHZVWRPH
&RQILGHQWLDO
,QDQ\HYHQWWKHSXEOLFLVWLVVXHVDUHEHLQJ
OLWLJDWHGLQ1HZ<RUN7KHUHZDVDUXOLQJE\WKH
ORZHUFRXUWDQGWKHUHLVDQDSSHDODVWR
SULYLOHJHGLVVXHVEHFDXVHWKHUHLVDORWRIODZ
WKDWVKRZVWKDWFRPPXQLFDWLRQVEHWZHHQP\VHOIDQG
WKHSXEOLFLVWDQGWKHVHDUHFRPPXQLFDWLRQV
-XVWVRZHKDYHDQXQGHUVWDQGLQJRIZKDWWKHVH
FRPPXQLFDWLRQVDUHWKHVHDUHFRPPXQLFDWLRQV
EHWZHHQP\VHOIDQGWKHSXEOLFLVWWKDWKDSSHQHGWKH
GD\ZHILOHGWKHODZVXLW$QGWKHUHPD\EHVRPH
FRPPXQLFDWLRQVZKHQDVWRU\FDPHRXWDERXW+XON
+RJDQWKDW
VUHOHYDQWWRWKLVODZVXLWDQGVKHDQG
,KDGVRPHFRPPXQLFDWLRQVWKDWZHUHSHUWLQHQWWR
WKHOLWLJDWLRQ
$QGWKHUHLVODZLQ1HZ<RUNWKDWVD\VWKRVH
DUHSULYLOHJHGDQGWKHORZHUFRXUWPDGHD
GHFLVLRQWKDWWKHSXEOLFLVWDQGZHDOVREHOLHYH
LVQRWIROORZLQJWKHODZDQGVRWKDW
VRQDSSHDO
EHIRUHWKHDSSHOODWHGLYLVLRQRIWKHORZHUFRXUW
$QGLW
VEDVLFDOO\MXVWFRPPXQLFDWLRQVEHWZHHQWKH
SXEOLFLVWDQGFRXQVHODERXWWKHOLWLJDWLRQLWVHOI
%XWLW
VQRWDERXWPHGLDDSSHDUDQFHVIURPWKH
71$:UHVWOLQJPHGLDWRXUEHFDXVHWKDWSXEOLFLVW
ZDVQRWLQYROYHGLQWKH71$ZUHVWOLQJWRXU7KDW
SXEOLFLVWLV0U%ROOHD
VSHUVRQDOSXEOLFLVWEXW
&RQILGHQWLDO
VKHZDVQRWGHDOLQJZLWKWKH71$PHGLDWRXU71$
KDGLWVRZQSXEOLFLVWWKDWZDVEHLQJXVHG6R
WKHUHLVDVHSDUDWHOLVWWKHUH$QGZH
YHKDGD
ORWRIFRPPXQLFDWLRQVRYHUWKDWVRWKHUHLVQR
PLVXQGHUVWDQGLQJ
,PHDQVRPHRIWKHVHWKLQJVDUHPLQRU%XW
0U%HUOLQPHQWLRQHGDIHZWLPHVWKDWWKH$86$
V
OHWWHUUHIHUVWR+RRWLHRQDODEHORQRQHRIWKH
GLVNVWKDWWKH)%,DQGWKH$86$REWDLQHGIURPWKH
H[WRUWLRQLVW,GRQ
WVHHKRZWKDWKDVDQ\WKLQJ
WRGRZLWKDQ\WKLQJ
,PHDQILUVWKHGRHVQ
WHYHQNQRZWKDWKH
ZDVFDOOHG+RRWLHXQWLO%XEED&OHPWHVWLILHGLQ
WKHFDVHDQGVDLG,FDOOKLP+RRWLH$QGVHFRQG
RIDOOWKH$86$OHWWHUFDPHZHOOLQWRWKHORVV
DQGZHKDGRXUPLQLOLWLJDWLRQRYHUZKHWKHU
FRPPXQLFDWLRQVZLWKODZHQIRUFHPHQWDUHWKHSURSHU
VFRSHRIGLVFRYHU\DQGZHIXOO\FRPSOLHGZLWK
ZKDWWKHUXOLQJKDVEHHQ
6RLW
VMXVW,GRQ
WHYHQNQRZZK\WKDW
LVVXHLVEHLQJEURXJKWXS,IHOWOLNH,KDGWR
DGGUHVVLW
0U%HUOLQXVHGWKHWHUPWKHIOLSIORSWKDW
ZHIOLSIORSRQRXUSRVLWLRQ7KHUHKDVQ
WEHHQ
DQ\IOLSIORSVZLWKUHVSHFWWRZKHWKHU*DZNHULV
&RQILGHQWLDO
RULVQRWWKHVXEMHFWRIWKH)%,
VLQYHVWLJDWLRQ
,KDYHQHYHUNQRZQRQHZD\RUWKHRWKHUXQWLOZD\
ODWHLQWKHJDPHDIWHU0U%HUOLQWDONHGWRWKH
$86$DQGREWDLQHGDOHWWHUIURPKHUVD\LQJ*DZNHU
LVQRWDWDUJHWRIWKHLQYHVWLJDWLRQ7KHQ,
OHDUQHGWKDW*DZNHUZDVQRWDWDUJHW%HIRUH
WKHQ,GLGQ
WNQRZ
$QGVRLI,HYHUVDLG*DZNHUPLJKWRUPLJKW
QRWEHDWDUJHWEHFDXVHWKH\ZHUHJRLQJRXW,
ZDVWU\LQJWRXQGHUVWDQG:K\DUHWKH\JRLQJDIWHU
WKH)%,GRFXPHQWV"%HFDXVHLI*DZNHUZDVD
WDUJHWWKHQWKDWZRXOGEHDSRWHQWLDO
LQWHUIHUHQFHRILQYHVWLJDWLRQRIWKHP6RWKDW
ZDVNLQGRIRQHRIWKHLVVXHVWKDWZHIODJJHG
,GRQ
WNQRZRQHZD\RUWKHRWKHU,GRQ
W
WDONWRWKH$86$8QWLODOOWKLVFDPHGRZQ,KDG
QHYHUVSRNHQWRWKH$86$DERXWWKDWDQGGRQ
WNQRZ
RQHZD\RUWKHRWKHULI*DZNHUZDVRUZDVQ
W
6RLIKH
VWU\LQJWRVD\WKDW,
PD
IOLSIORSSHUWKDW,VDLGWKDWWKH\ZHUHDQGWKHQ
,VDLGWKH\ZHUHQ
WDQGWKHQ,VDLGWKDWWKH\
ZHUHWKDW
VQRWDFFXUDWHDVIDUDVP\
UHFROOHFWLRQ,EHOLHYHWKDW,KDYHEHHQDFFXUDWH
WKDWWKH\SRWHQWLDOO\FRXOGEH
$QGWKHQRQFHRQFHWKH$86$PDGHLWFOHDU
&RQILGHQWLDO
WKHQ,VDLGWR-XGJH&DPSEHOOLQDUHFHQW
KHDULQJWKH$86$RUODZHQIRUFHPHQWVDLGWKDW
WKH\DUHQRWDWDUJHWWRLW$QGWKDWZDVRQHRI
WKHUHDVRQVZK\,WKRXJKWZHOOZK\LVLWWKDW
WKH\QHHGWRJHWDOOWKLVLQYHVWLJDWLRQVWXII"
$QGWKDW
VZKHQ,GLVFORVHGWR-XGJH&DPSEHOOWKDW
WKLVLVDQH[WRUWLRQVLWXDWLRQDQGWKDW
VZK\
WKDW
VWKHQDWXUHRIWKHVHGRFXPHQWV
,WKRXJKWWKDWVKHPLJKWVD\2ND\ZHOO
PD\EHLWQHHGVDQRWKHUORRN6KHDFWXDOO\
IROORZHG<RXU+RQRU
VUXOLQJDQGWKHQZH
LPPHGLDWHO\SURGXFHGWKHP%XWZHGLGQ
WGR
DQ\WKLQJZURQJ:HGLGQ
WREIXVFDWH:HGLGQ
W
FRQFHDO:HGLGQ
WYLRODWHDQ\FRXUWRUGHUV
2QFHZHUHFHLYHGWKDWRUGHUWRSURGXFHZH
SURGXFHG
0U%HUOLQPDGHLWVRXQGOLNH,ZDVKHDYLO\
LQYROYHGLQWKH)%,WKLQJVDQG0U7XUNHOZDV
KHDYLO\LQYROYHG,PHDQWKDWZDVWKHNLQGRI
LQQXHQGRWKDW,JRW,WZDVUHDOO\'DYLG+RXVWRQ
ZKRZDVLQYROYHG,WKLQN,KDGRQHRUWZRYHU\
VKRUWFRPPXQLFDWLRQVZLWKWKH)%,DORQJWLPHDJR
$QG,GLVFORVHGWKDWWRWKHPLQWKH
LQWHUURJDWRULHV7REHKRQHVWZLWK\RX,GRQ
W
UHPHPEHUZKDW,WDONHGWRWKHPDERXW,WZDVMXVW
&RQILGHQWLDO
WKHVWDWXV,WZDVSUREDEO\ILYHPLQXWHV:KDW
V
WKHVWDWXV"
.HQ7XUNHOKDGFRPPXQLFDWLRQVDQGWKH\ZHUH
H[WUHPHO\VKRUW,GRQ
WNQRZLILWZDVZLWK
WKH,WKLQNKHWDONHGWRWKH)%,DQGWKH$86$
IRUMXVWDFRXSOHRIPLQXWHVRQZKDW
VWKHLU
SRVLWLRQZLWKUHJDUGWRWKHVHGRFXPHQWV$QGLW
ZDVWKHVDPHWLPHWKDW0U%HUOLQZDVJHWWLQJZKDW
WKHLUSRVLWLRQZDVZKLFKLVDQGLWZDVD
FKDQJHGSRVLWLRQ7KH)%,RULJLQDOO\VDLG'RQRW
WDONWRDQ\RQHDERXWWKLV$QGMXVWVR\RXNQRZ
WKDW
VQRWZK\ZHGLGQ
WSURGXFHWKHVHGRFXPHQWV
:HGLGQ
WSURGXFHWKHVHGRFXPHQWVEHFDXVHWKH\
QHYHUDVNHGIRUWKHP
%XWZHFHUWDLQO\ZHUHQ
WYROXQWHHULQJ
LQIRUPDWLRQDERXWWKH)%,MXVWWRYROXQWHHU
EHFDXVHWKH\KDGVDLG.HHSDOLGRQWKLV'RQ
W
WDONWRDQ\RQHDERXWWKLVFHUWDLQO\QRW
FHUWDLQO\QRWPHGLD:HOOWKH\DUHPHGLDVRWKH
)%,GLGQ
WZDQWVRPHELJPHGLDVWRUPRYHUWKLVDQG
WKHQFDXVHWKHLUZKROHLQYHVWLJDWLRQWRORRN
HPEDUUDVVLQJWRWKHP$QGVRWKH\ZHUHWU\LQJWR
DYRLGDVLWXDWLRQOLNHWKDW,DVVXPH$QGWKH\
ZHUHWU\LQJWRDYRLGDQ\RQHLQWHUIHULQJZLWKWKHLU
LQYHVWLJDWLRQZKLOHWKH\ZHUHFRQGXFWLQJLW
&RQILGHQWLDO
%XWWRZDUGVWKHHQGRIWKHSURFHVV
0U%HUOLQZDVDEOHWRJHWWKHPWRFRQILUPWKDW
WKH\,WKLQNKHVDLGWKHUHZDVDFORVHG
LQYHVWLJDWLRQ,GRQ
WWKLQN,KDYHHYHUKHDUG
WKDWLWZDVDFORVHGLQYHVWLJDWLRQ:H
YHDOZD\V
EHHQWROGWKDWLWZDVVWLOORSHQEXWWKDWWKH\KDG
GHFLGHGWKDWWKH\EDVHGRQWKHSUHVHQWHYLGHQFH
WKH\ZHUHQRWJRLQJWRSURVHFXWH
1RZLILWFORVHGDWVRPHSRLQWWKHQLW
FORVHGDWVRPHSRLQWEXW,GRQ
WEHOLHYHWKDW,
RU'DYLGRU.HQHYHUPDGHDQ\PLVUHSUHVHQWDWLRQV
RIDQ\NLQGUHJDUGLQJWKHVWDWXVRIWKH)%,
LQYHVWLJDWLRQDQGWKH$86$
VGHVLUHRUODFNRI
GHVLUHWRSURVHFXWH
/DZHQIRUFHPHQWFKDQJHGLWVPLQGRYHUWKH
FRXUVHRIWLPHDQGVRLIWKHUHZDVDIOLSIORS
LWZDVUHDOO\E\ODZHQIRUFHPHQWDQGLWFHUWDLQO\
ZDVQ
WE\XV$QGLIZHZHUHHYHUUHSRUWLQJZKDW
RXUXQGHUVWDQGLQJZDVLWZDVMXVWEDVHGXSRQZKDW
RXUSUHVHQWNQRZOHGJHZDVDQGLWZDVQRWLQWHQGHG
WRPLVOHDGDQ\RQH
$QGHYHQVR,PHDQWKLVZKROHH[WRUWLRQ
WKLQJZHDOZD\VKDYHWKRXJKWRIWKDWDVEHLQJ
VHSDUDWHDQGDSDUWIURPZKDW*DZNHUGLG*DZNHU
WRRNDWDSHHGLWHGLWGRZQDQGSRVWHGWKDWWDSH
&RQILGHQWLDO
:HVXHGRYHUWKDW$QGWKHIDFWWKDWWKHUHLVDQ
H[WRUWLRQKDSSHQLQJ,WKLQNWKDWWKDWLVVRPHZKDW
IDUDILHOG%XWWKH\KDYHWKHGRFXPHQWVWRWDNHD
ORRNDWLWDQGPDNHZKDWHYHUGHWHUPLQDWLRQVWKH\
ZDQW
%XW,WKLQNLIWKH\GRLWVRXQGVOLNHWKH\
ZDQWWRSURFHHGZLWKGLVFRYHU\RQWKHH[WRUWLRQ
DWWHPSWDQGZKDWZDVJRLQJRQZLWKODZHQIRUFHPHQW
DVWKHH[WRUWLRQ$QGLI\RXDUHJRLQJWRDOORZ
WKHPWRHQJDJHLQWKDWGLVFRYHU\,GRQ
WWKLQN
WKDWLW
VJRLQJWRHQGXS\LHOGLQJDGPLVVLEOH
HYLGHQFH
7KH\
UHFRPSODLQLQJDERXWKRZH[SHQVLYHWKLV
LV7KH\
UHWKHRQHVGULYLQJWKHERDWRQWKH
H[SHQVH7KH\
UHWKHRQHVZKRDUHJRLQJDIWHUDOO
NLQGVRIWKLQJVWKDWDUHEH\RQGZKDWWKH\GLGDQG
EH\RQGZKDWWKHLUGHIHQVHVDUHWRZKDWWKH\GLG
DQGZKDWRXUFODLPVDUH%XWLIWKH\ZDQWWR
VSHQGDORWRIPRQH\RQXQFRYHULQJHYHU\VWRQHDQG
WXUQLQJRYHUHYHU\VWRQHDQGXQFRYHULQJHYHU\WKLQJ
WKDWKDVDQ\WKLQJWRGRZLWKDQ\WKLQJWKHQ,
VXSSRVHWKDW
VWKHLUSUHURJDWLYHZLWKLQWKHVFRSH
RIZKDWHYHUWKHFRXUWVDUHJRLQJWRRUGHU%XWLI
WKH\DUHFRPSODLQLQJWKDWWKDW
VH[SHQVLYH,
PHDQWKDW
VRQWKHP:H
UHQRWZH
UHQRW
&RQILGHQWLDO
FDXVLQJWKDWH[SHQVH
,KDWHWRUHSHDWP\VHOIEXWRQHRIWKH
VWDWHPHQWVWKDW0U%HUOLQVDLGZDVWKDWZHIDLOHG
WRSURGXFHGRFXPHQWVWKDWZHUHDOUHDG\DGMXGLFDWHG
WREHUHOHYDQW$QGWKDW
VDQGKHZDVFLWLQJ
WRWKH2FWREHURUDORUGHUDQGWKHQLWZDV
UHGXFHGLQZULWLQJRQ)HEUXDU\WK,I\RX
UHDGLWZKDWKHVDLGLVDEVROXWHO\QRWLQWKHUH
DQGZHKDYHQRWYLRODWHGWKLVRUGHUDWDOO
,WKLQN,KDYHFRYHUHGP\LVVXHV<RXU+RQRU
,I\RXKDYHDQ\TXHVWLRQV,
PKDSS\WRDQVZHU
WKHP
-8'*(&$6(,WKLQN,
PJRRG
6KRUWUHSO\"
05%(5/,1,FDQJLYH\RXDVKRUWUHSO\
-8'*(&$6(2ND\
05%(5/,1/HWPHVWDUWE\DVNLQJ<RXU
+RQRULI\RXKDYHDQ\TXHVWLRQVIRUPH
-8'*(&$6(1RVLU
05%(5/,1/HWPHVWDUWE\VD\LQJWKDWP\
IDYRULWHTXRWHRIWKHFDVHLVWKDW0U+DUGHU
FLWHGLQKLVVXSSOHPHQWDORSSRVLWLRQIURPDMXGJH
LQRQHRIWKHVHFDVHVZKRVDLGWKDWOLWLJDWLRQLV
QRWDIDFWIUHH]RQH$QGVR,ZDQWWRVRUWRI
IRFXVRQWKHIDFWV,WKLQNWKHUHKDVEHHQD
&RQILGHQWLDO
VLJQLILFDQWWKHDUJXPHQWWKDW0U+DUGHUMXVW
JDYHUHIOHFWVDVLJQLILFDQWPLVDSSUHKHQVLRQRI
ZKDWLWLVWKDWZH
UHKHUHDERXW:HDUHQRWKHUH
EHFDXVHWKHUHZDVDGHOD\LQSURGXFLQJ)%,
GRFXPHQWVE\LWVHOI:HDUHKHUHEHFDXVHILUVW
ZHEHOLHYHWKDWWKHLQLWLDOVHWRIGLVFRYHU\
UHTXHVWVDQGWKHRUGHUWRSURGXFHGRFXPHQWVWKDW
UHODWHWRWKHVH[XDOUHODWLRQVKLSEHWZHHQWKH
SODLQWLIIDQG+HDWKHU&OHPHQFRPSDVVHGGRFXPHQWV
DERXWDWDSHRUPXOWLSOHWDSHVLQYROYLQJDVH[XDO
UHODWLRQVKLSEHWZHHQWKHSODLQWLIIDQG
+HDWKHU&OHP
$QGZHWKLQNWKDWWKRVHGRFXPHQWUHTXHVWV
\RXNQRZDQ\DQGDOOGRFXPHQWVUHODWHGWRWKH
YLGHRDQ\DQGDOOGRFXPHQWVUHODWHGWRWKH
FRPPXQLFDWLRQV\RXKDGDERXWWKHYLGHRDQ\DQG
DOOGRFXPHQWVUHODWLQJWRVH[XDOUHODWLRQV\RXKDG
ZLWK+HDWKHU&OHPDQ\DQGDOOGRFXPHQWV
FRQFHUQLQJDQ\YLGHRWDSHPDGHRI\RXLQYROYLQJ
,
PVRUU\HQJDJHGLQVH[XDOUHODWLRQVWKHVHDUH
DOOGRFXPHQWVWKDWGRFXPHQWUHTXHVWVWKDWZHUH
WKHLQLWLDOEDWFKRIGRFXPHQWVUHTXHVWHGODVW-XQH
WKDWVKRXOGKDYHEHHQDQVZHUHGDQGVKRXOGKDYH
EHHQSURYLGHG
1RZHYHQLI\RXZHUHWRWDNHWKHDUJXPHQW
&RQILGHQWLDO
WKDWVD\VWKDW\RXGLGQ
WVSHFLILFDOO\DVNXVIRU
ODZHQIRUFHPHQWUHFRUGVDQGWKHUHIRUHZHGRQRW
KDYHWRSURGXFHWKHP,GRQ
WWKLQNWKDWPDNHVD
ORWRIVHQVHEHFDXVHLQWKHGRFXPHQWVWKHPVHOYHV
WKHUHLVMXVWLQRQHRIWKHGRFXPHQWVLWVHOI
WKHUHLVDSDVVDJHWKDWVD\VWKDWLQWKLV
DJUHHPHQWZLWK0U'DYLGVRQWKDWKLVFOLHQWDJUHHV
WKDWWKHSDUW\WKDWSRVVHVVHGWKHYLGHRVVRUU\
+LVFOLHQWDJUHHVWKDWWKH\DUHWKHSDUW\WKDW
SRVVHVVHGWKHYLGHRVJLYHQRUSURYLGHGWR*DZNHU
70=DQGRWKHUPHGLDIRUSXEOLFDWLRQ
1RZKHPD\VD\WKDW
VQRWWUXH,ZRXOGQ
W
WUXVWWKHZRUGRIDQH[WRUWLRQLVWEXWLW
V
FOHDUO\DUHOHYDQWGRFXPHQWEHFDXVHLWFOHDUO\
UHODWHVWR*DZNHUDQGZKDWZDVSRVWHGE\*DZNHU
$QGZHGLGQ
WJHWWKRVHGRFXPHQWV
%XWHYHQLI\RXDVVXPHGWKDWWKHVHGRFXPHQWV
GLGQ
WKDYHWREHSURGXFHGWKDWZHGLGQ
WDVNIRU
WKHPZHGLGQ
WPDNHWKHVNLOOVKRWRIDFWXDOO\
VD\LQJ*LYHXVWKHODZHQIRUFHPHQWGRFXPHQWV
LQVWHDGRIPRUHEURDGUHTXHVWVDQGHYHQLI\RX
DVVXPHWKDW\RXGRQ
WKDYHWRLGHQWLI\WKHPDV
SULYLOHJHGDQGWKHUHDUHGRFXPHQWVWKDWVWDUW
RQWKHWKRI2FWREHUZKLFKLVDERXWDZHHNEHIRUH
WKLVODZVXLWJRWILOHG
&RQILGHQWLDO
$QGRXUSRVLWLRQLVWKDWWKLQJVWKDWZHUH
H[HPSWHGIURPWKHSULYLOHJHORJZHUHWKLQJVWKDW
UHODWHGWRDWWRUQH\FOLHQWDQGDWWRUQH\ZRUN
SURGXFWSULYLOHJHVEHFDXVHRIWKHEXUGHQLQYROYHG
$QGIRURXUSDUWZH
YHDVVHUWHGRWKHUSULYLOHJH
MRXUQDOLVWSULYLOHJHDQGWKHOLNHIRUWKLQJVWKDW
SRVWGDWHWKHILOLQJRIWKHILUVWODZVXLWLQ
IHGHUDOFRXUW6RZH
YHSOD\HGE\WKDWUXOH
%XWHYHQLI\RXDVVXPHVRZHGRQ
WHYHQ
LI\RXDVVXPHWKH\GRQ
WKDYHWREHSURGXFHGDQG
HYHQLI\RXDVVXPHWKDWWKHSUHOLWLJDWLRQ
GRFXPHQWVGRQ
WKDYHWRORJJHGWKHLQIRUPDWLRQ
WKDW
VLQWKRVHGRFXPHQWVLVVWLOOUHOHYDQWDQG
JHUPDQHWRWKHDQVZHUVRIWKHTXHVWLRQVWKDWZH
UH
JHWWLQJ6RZKHQWKHDQVZHUWRWKHLQWHUURJDWRU\
VZRUQXQGHURDWKLV,KDYHQRLQIRUPDWLRQDERXW
DQ\RWKHUVH[WDSHVLQYROYLQJPHRWKHUWKDQWKH
RQHWKDW*DZNHUSRVWHGWKDW
VMXVWWKDW
V
ZURQJ$QGLW
VQRWDTXHVWLRQRIMXVWWKHUHZDV
DGHOD\LQJLYLQJXVWKH)%,GRFXPHQWVLW
VWKDW
WKHUHLVDIILUPDWLYHUHSUHVHQWDWLRQVXQGHURDWK
WKDWDUHZURQJ
$QGWKHQZHFRPHWRKHDULQJVDQGZHVD\
/RRNZHGRQ
WWKLQNZHKDYHDOORIWKH
LQIRUPDWLRQ$QGZHDVVXUH\RXXSDQGGRZQZH
&RQILGHQWLDO
KDYHJLYHQ\RXHYHU\WKLQJULJKW":HDVVXUH\RX
ZHKDYHJLYHQ\RXHYHU\WKLQJDOORIWKHPHGLD
DSSHDUDQFHV:H
UHLQ1HZ<RUNOLWLJDWLQJDJDLQVW
WKHSXEOLFLVWEHFDXVHZHZHUHLQDKHDULQJLQ
IURQWRI<RXU+RQRUZKHUH0U+DUGHUUHSUHVHQWHG
WKDWKHGLGQ
WKDYHDQ\GRFXPHQWV
$QGWKHQZHOLWLJDWHWKHUHDQGZHFRPHWR
ILQGRXWWKDWKHKDVGRFXPHQWVLQKLVRZQILOH
EDFNDQGIRUWKZLWKWKHSXEOLFLVWZKLFKKH
VQRZ
GHVFULEHG$QGZHILQGWKLVRXW6RWKLVLVQRW
DPRWLRQDERXWDGHOD\LQJHWWLQJGLVFRYHU\RUWKH
DOOHJHGSUHMXGLFHWKDWUHVXOWVIURPWKHGHOD\LQ
JHWWLQJGLVFRYHU\,IWKDW
VZKDWWKLVZDVDERXW
ZHZRXOGQRWEHKHUH
:KDWWKLVLVDERXWLVWKDWZHKDYHOLWLJDWHG
VLQFHODVW-XQHWU\LQJWRJHWWKHVHIDFWVDQG
ZH
UHQRWJHWWLQJWKHVHIDFWV:H
UHJHWWLQJ
GLIIHUHQWIDFWV:H
UHJHWWLQJWROG\RXNQRZ,
GRQ
WNQRZDQ\WKLQJDERXWDQ\RWKHUWDSHVULJKW"
$QGRQWKLVTXHVWLRQRIWDSHVDJDLQLW
V,
GRQ
WNQRZLIWKHUHDUHWKHVHWDSHVULJKW":HOO
ILUVWRIDOOZHKDYHDQRWKHUWUDQVFULSWIURP
DQRWKHUVRXUFHWKDWDOVRGHVFULEHVWZRRIWKUHH
WDSHVDQGODUJHO\PDWFKHV
6HFRQGWKHRQHWDSHWKDWZHGRKDYH
&RQILGHQWLDO
0U+DUGHUDGPLWVOLQHVXSSUHWW\QLFHO\ZLWKWKH
WUDQVFULSWWKHUHVRWKDWVXJJHVWVWKDWPD\EHWKH
WUDQVFULSWVWKDWDUHWKHUHDUHQRWFRPSOHWH
IDEULFDWLRQV
$QG1RIRUWDSHVWKH\GRQ
WEHOLHYH
H[LVWWKH\KDYHVSHQWDQDZIXOORWRIWLPHWU\LQJ
WRJHWWKHPEDFNIURPWKH)%,7KDW
VZKDWRXU
VXEPLVVLRQVKRZVWKDWWKH\DUHXSLQDUPV'RQ
W
KROGWKHPZHZDQW\RXWRJLYHWKHPEDFNWRXV
SUHVXPDEO\VRWKH\FDQGHVWUR\WKHPZKLFKLVZK\
ZHDVNHGIRUDSUHVHUYDWLRQRUGHU
6RWKDW
VZKDWWKLVPRWLRQLVDERXW7KH
VHFRQGWKLQJLVWKH\VD\:HKDYHQ
WYLRODWHGDQ\
FRXUWRUGHU:HOO,WKLQNLQDGGLWLRQWR
YLRODWLQJWKHFRXUWRUGHUV\RXKDYHVRPHEDVLF
GXW\RIFDQGRUWRWKHWULEXQDODQGVRZKHQ
0U+DUGHUFRPHVDQGVD\V:HGRQ
WKDYHDQ\RI
WKHVHGRFXPHQWV,GRQ
WKDYHDQ\SULYLOHJH
GRFXPHQWV,GRQ
WKDYHDQ\PHGLDDSSHDUDQFH
GRFXPHQWV,GRQ
WKDYHDQ\RWKHUGRFXPHQWVDERXW
DQ\RWKHUWDSHVZKHQWKRVHVWDWHPHQWVJHWPDGH
WKRVHDUHPLVUHSUHVHQWDWLRQVDQGWKH\OHDGWRWKH
HQWU\RIWKHRUGHUVWKDWDUHSUREOHPDWLF
0U+DUGHUZDQWVWRQRZKDYHXVLQWHUSUHW
-XGJH&DPSEHOO
VRUGHUIURPWKH-DQXDU\WK
&RQILGHQWLDO
KHDULQJDERXWWKHSURYLVLRQRIYLGHRWR\RXZKLFK
KHPDGHEDVHGRQWKHDUJXPHQWWKDWDFWXDOO\VHHLQJ
0U%ROOHDDQG0V&OHPHQJDJLQJLQDGGLWLRQDO
DFWVRIVH[XDOLQWHUFRXUVHDQGVH[XDOUHODWLRQV
VKRXOGQ
WEHSURGXFHGWR*DZNHUHYHQXQGHU
DWWRUQH\
VH\HVRQO\RUDFRQILGHQWLDOLW\RUGHU
7KDWZDVQRWDERXWWKHWH[WRIWKRVHWKLQJV
$QGWRWKHH[WHQWWKDWZHQRZZDQWWRLQWHUSUHW
WKDWRUGHUWRDSSO\WRWKHWH[WRIGRFXPHQWVZH
ZHUHQ
WDEOHWROLWLJDWHWKDWLVVXHLQIURQWRI
-XGJH&DPSEHOOSURSHUO\EHFDXVHZHGLGQ
WNQRZ
WKDWWKHUHZHUHWKHVHWUDQVFULSWVWKDWH[LVWHG
EHFDXVHWKH\KDGEHHQZLWKKHOGZLWKXV6RWRVLW
WKHUHDQGVD\:HQRZQHHGWRLQWHUSUHWDQRUGHU
WKDWZDVLVVXHGEDVHGRQQHLWKHU-XGJH&DPSEHOO
QRUWKHRWKHUVLGHNQRZLQJZKDWZDVZKDWGRHVQ
W
VHHPULJKWDWDOO
%XWWKHUHKDYHEHHQWKHILUVWRUGHUIURP
2FWREHUWKVDLGGRFXPHQWVDQGLQIRUPDWLRQERWK
SHUWDLQLQJWRWKHVH[XDOUHODWLRQVKLSEHWZHHQ
0U%ROOHDDQG+HDWKHU&OHPQHHGWREHSURYLGHG
DQGWKHRUGHULWVHOIVSHFLILFDOO\FDOOVIRU
VXSSOHPHQWLQJLQWHUURJDWRULHVDQGSURYLGLQJ
GRFXPHQWV6RWKDW
VDILUVWYLRODWLRQ
7KHQZHFRPHWRWKHVHFRQGRUGHUZKLFKLV
&RQILGHQWLDO
\RXURUGHUIURP)HEUXDU\ZKLFKZDVQRWFKDOOHQJHG
DQGWKHUHIRUHLVWKHRUGHULQZKLFK\RXVD\
,
PGHQ\LQJWKHPRWLRQIRUVDQFWLRQVEXW,
P
GRLQJLWEDVHGRQDUHSUHVHQWDWLRQWKDW\RX
YH
SURYLGHGHYHU\WKLQJWKDW\RXFDQDQGWKDW\RXKDYH
RQWKLVVXEMHFW$QGWKHQLIWKDWWXUQVRXWWREH
ZURQJWKHQ\RXFDQ\RXNQRZEDVLFDOO\\RX
UH
LQWURXEOH6RWKDW
VDVHFRQGYLRODWLRQ
$QGWKHQWKHWKLUGYLRODWLRQLVDYLRODWLRQ
WKDW
VEHHQFRQFHGHGZKLFKLVIURPWKH$SULOUG
RUGHUZKLFKVD\V,ZDVRUGHUHGWRSURGXFHSKRQH
UHFRUGV,ZDVRUGHUHGWRSURGXFH)%,GRFXPHQWV
DQG,KDYHQ
WGRQHWKDW,KDYHQ
WWKH\
UH
VWLOOWKHUHDUHVWLOOUHFRUGVWKDWWKH)%,
UHFRUGVKDYHEHHQSURGXFHG7KH\ZHUHSURGXFHG
\RXNQRZLQWKDWVRUWRIUROOLQJIDVKLRQ%XW
WKH\KDYHEHHQSURGXFHG%XWWKHSKRQHUHFRUGV
DQGWKHPHGLDDSSHDUDQFHVZHKDYHQ
WJRWWHQWKRVH
GRFXPHQWVULJKW"6RZKHQZHKDYHDVHULHVRI
WKHVHRUGHUVWKDW
VWKHSUREOHP
$QGZKHQ\RXORRNDWDQGVRWKHUHVSRQVH
WRDOOWKLVDJDLQLVUDWKHUVWULNLQJWRPHLV
WKDWWKLVVWXIILVFROODWHUDO,W
VQRWUHOHYDQW
,W
VQRWJRLQJWR\LHOGDQ\DGPLVVLEOHHYLGHQFH
:H
YHKHDUGWKDWRYHUDQGRYHUDJDLQULJKW"
&RQILGHQWLDO
7KDW
VQRWUHOHYDQWWRWKLVFDVH,PHDQ
0U+DUGHUSUREDEO\PDGHWKLVLVDWDSH\RX
NQRZWKLVLVDFDVHDERXWWKLVWDSH+HZHQW
RQDWVRPHOHQJWKDERXW/HWPHUHPLQG\RXZKDW
WKLVFDVHLVDERXW
:HKDYHDGLIIHUHQWYLHZDERXWZKDWWKHFDVH
LVDERXWDQGZH
UHHQWLWOHGWRWKDW%XWZH
YH
OLWLJDWHGWKDWDQGZHKDYHXPSLUHVWZRRIWKHP
LQWKLVFDVHZKRKDYHDOUHDG\FDOOHGWKRVHEDOOV
DQGVWULNHVDQGPDGHWKDWUXOLQJ$QGZHGRQ
W
LW
VOLNHLI\RXZHUHRQWKHEDVHEDOOILHOGDQG
\RXNQRZXPSLUHVD\V\RXNQRZWKDW
VWKUHH
VWULNHVDQG\RX
UHRXWDQG\RXWXUQWRWKHXPS
DQG\RXDUJXHDQGVD\QRLW
VQRW,
PJRLQJWR
VXEVWLWXWHP\MXGJPHQWDERXWZKDW
VUHOHYDQWDQG
ZKDW
VQRWIRU\RX\RXNQRZWKDW
VQRWKRZ
WKDW
VQRZKRZWKLVJDPHLVSOD\HG
$QGWKHQ\RXNQRZVSHDNLQJMXVWWRWKH
GLVPLVVDOSRLQW,WKLQNWKDWWKLVVKRZLQJWKDWZH
KDYHPDGHVKRZVWKDWRYHUWLPHWKDWWKHVH
PLVUHSUHVHQWDWLRQVZHUHZLOOIXOO\PDGH7KH\
LQFOXGHGWKHSHUVRQDOLQYROYHPHQWRIWKHFOLHQW
ZKRWHVWLILHGDERXWWKHPDWVRPHOHQJWKGXULQJKLV
GHSRVLWLRQWKDW\RXFRQVLGHUHGOHVVHUVDQFWLRQV
LQWKHHDUOLHUVDQFWLRQPRWLRQDQG\RXGHQLHGLW
&RQILGHQWLDO
ZLWKWKHFDYHDWWKDWLIWKH\GLGLWDJDLQWKDW
WKHUHZRXOGEHDIXUWKHUVDQFWLRQWKDWWKHUHKDV
EHHQFOHDUSUHMXGLFHWRXVDVDSDUW\
,PHDQWKHUHDUHDQXPEHURIWKLQJVWKDWZH
KDYHZHKDYHKDGWRFKDVHGRZQ6RIRU
H[DPSOHMXVWRQWKHGDWH0U+DUGHUVD\V7KDW
V
DVLOO\WKLQJZKRFDUHVZKHWKHULW
V
:HOOGXULQJWKDWWLPHSHULRG0U%ROOHD
ZDVPDUULHGWKHQVHSDUDWHGWKHQGLYRUFHGULJKW"
'XULQJWKDWWLPHSHULRGZHGRQ
W\RXNQRZ
WKHUHLVYLGHREURDGFDVWVZKLFKZHSOD\HGGXULQJ
WKHGHSRVLWLRQZKHUH0U&OHPWDONVDERXWKDYLQJ
FDPHUDVLQKLVKRXVHULJKW"'LGWKHVHHQFRXQWHUV
KDSSHQEHIRUHRUDIWHUWKDW"
7KHUHLVUDGLREURDGFDVWV7KHUHLVDSHULRG
ZKHUH0U%ROOHDOLYHVZLWK0U&OHP:DVWKDW
EHIRUHRUDIWHUWKHVHHQFRXQWHUV":H
UHMXVW
WU\LQJWRVTXDUHRXWZKDWKDSSHQHGDQGZH
VSHQW,PHDQZH
YHJRWGRFXPHQWVKHUHWKDW
WHOOXVWKHDQVZHUWRWKLVTXHVWLRQZKLFKWKH\
KDGDQGWKH\KDYHKDGVLQFHDQ\GLVFRYHU\\RX
NQRZEHIRUHDQ\GLVFRYHU\ZDVDQVZHUHGLQWKLV
FDVHWKDWDQVZHUHGWKHVHTXHVWLRQV$QGORRNLI
WKH\ZDQWWRVD\/RRNKHUHLVDGRFXPHQWZH
UH
QRWVXUHWKLVLVWKHULJKWDQVZHUWKH\
UHIUHHWR
&RQILGHQWLDO
GRWKDW%XWWRVD\:HKDYHWKLVLQIRUPDWLRQEXW
ZH
UHQRWJRLQJWRJLYHLWWR\RXWKDW
VMXVWQRW
ULJKW
,W
VREYLRXVO\SUHMXGLFHGWKHMXGLFLDOV\VWHP
LQWKHVHQVHWKDWWKHUHKDYHEHHQ
PLVUHSUHVHQWDWLRQVWR\RXDQGWR-XGJH&DPSEHOO
DQGWKDW\RXKDYHPDGHUXOLQJVEDVHGRQWKRVH
PLVUHSUHVHQWDWLRQVDQGWKDW\RXKDYHWDNHQXS\RXU
WLPHZKLFKE\WKHZD\*DZNHULVSUHMXGLFHGLQ
EHFDXVHZHSD\KDOIRIWKDW$QGWKDWLVDGLUHFW
DIIURQWWRWKHDGPLQLVWUDWLRQRIWKHMXGLFLDO
V\VWHP
$QGWKHODVWLVWKDW,ZRXOGVXEPLWWKDWWKH
H[SODQDWLRQWKDW0U+DUGHUKDVJLYHQLVEDVLFDOO\
WRUHDUJXHWKHSRLQWWKDWWKHVHWKLQJVDUH
UHOHYDQWWKDWWKHVHWKLQJVDUHQRWUHOHYDQWWR
WKHFDVH$QGWKDW
VDOUHDG\EHHQGHWHUPLQHGWKDW
ZHGRQ
WJHWWRGRWKDW:HGRQ
WJHWWROLWLJDWH
DPRWLRQRQSKRQHUHFRUGVOLWLJDWHGLWLQIURQW
RI-XGJH&DPSEHOODQGWKHQWXUQDURXQGDQGVD\
:HDUHQRWJRLQJWRFRPSO\ZLWKWKDWRUGHUEHFDXVH
ZHWKLQNZHZDQWWRDJDLQDVVHUWWKDWWKHUHLV
DSULYDF\LQWHUHVW7KDWLVVXHKDVDOUHDG\EHHQ
DGMXGLFDWHG+RZPDQ\WLPHVDUHZHJRLQJWRGR
WKLV<RXU+RQRU"$QG,GRQ
WYLHZWKHVHWKLQJV
&RQILGHQWLDO
KDYLQJDUHDVRQDEOHH[SODQDWLRQZKHQWDNHQLQ
WRWR
$QG,WKLQN,ZLOOVWRSWKHUH,WKLQNWKHUH
LVD\RXNQRZDV,VDLGHDUOLHUOHWPHMXVW
VWRSKHUHZKLFKLVWRVD\WRWKHH[WHQWWKDW
WKHVH)%,GRFXPHQWVWKHUHLVQRHYLGHQFHWKDW
DQ\ERG\ZHQWEDFNWRWKH)%,DQGVDLG<RXNQRZ
ZHKDYHDGLVFRYHU\UHTXHVWWKDWFDOOVIRUVRPHRI
WKLVLQIRUPDWLRQ(YHQLIZHGRQ
WSURGXFHWKH
GRFXPHQWVZHKDYHDGLVFRYHU\UHTXHVWWKDWFDOOV
IRUVRPHRIWKLVLQIRUPDWLRQ'R\RXQRZKDYH
FRQFHUQVDERXWXVGRLQJWKDW"
$OOULJKW7KH\GLGQ
WFRPHWR\RXRUWR
-XGJH&DPSEHOODQGVD\/RRNZH
UHEHWZHHQDURFN
DQGDKDUGSODFH:KDWZRXOG\RXKDYHXVGR"
7KH\MXVWDUURJDWHGLWWRWKHPVHOYHVWKHGHFLVLRQ
WRVD\ZH
UHQRWJRLQJWRGLVFORVHWKLV
LQIRUPDWLRQ$QG,ZRXOGUHVSHFWIXOO\VXEPLWWKDW
WKDW
VMXVWZURQJ$QGWKDWLI\RXJHWWRGR
WKDWWKLVZKROHSURFHVVFRPSOHWHO\IDOOVDSDUW
$QGWKDW
VZK\ZH
UHKHUHWRGD\<RXU+RQRU$QG
ZLWKWKDW,WKLQN,ZLOOVWRS
-8'*(&$6($Q\WKLQJHOVH"
05+$5'(5'R\RXKDYHDQ\TXHVWLRQV"
-8'*(&$6(1R
&RQILGHQWLDO
05+$5'(5<RX
YHKHDUGDORW\RX
YHUHDG
DORW
-8'*(&$6(,KDYH
05+$5'(5,GRQ
WZDQWWRUHSHDWP\VHOI
-8'*(&$6(,KDYH$OOULJKW/HW
VWDNH
ILYHPLQXWHV
$UHFHVVZDVWDNHQDWDP
-8'*(&$6($OOULJKW,KDYHKDGWKH
RSSRUWXQLW\WRUHYLHZDOOWKHPDWHULDOVWKDWKDYH
EHHQIXUQLVKHGWRPHSULRUWRWKHKHDULQJKHUH
WRGD\,KDYHDOVRKDGWKHRSSRUWXQLW\WROLVWHQ
FDUHIXOO\WRWKHDUJXPHQWVZKLFKKDYHEHHQ
SURSRXQGHGWRPHDQGRQERWKVLGHV\RXKDYH
UHSUHVHQWHG\RXUFOLHQWVYHU\FDSDEO\$QG,KDYH
WKRURXJKO\HQMR\HGKHDULQJWKHVHDUJXPHQWV,
NQRZ\RXJHWWRPDNHWKHPEXW,JHWWRKHDUWKHP
$QGDIWHUDOOWKRVH\HDUVRQWKHEHQFK,XVHGWR
GUHDGWKHVHNLQGVRIKHDULQJVEHFDXVHPRVWRIWKH
WLPHWKHODZ\HUVDUHQRWDVFRPSHWHQW\RXDUHDQG
\RXGRDJRRGMREVR,DSSUHFLDWHWKDW
%XWLQWKHILQDODQDO\VLVDQ\DQDO\VLVZLWK
UHVSHFWWRVDQFWLRQVLQWKH)ORULGDFRXUWVDUH
VWLOOJRYHUQHGE\WKHFDVHRI.R]HOYHUVXV
2VWHQGRUIZKLFKLVDQROG6XSUHPH&RXUWGHFLVLRQ
ZKLFKLVVWLOOJRRGDQGVWLOOIROORZHG$QGWKH
&RQILGHQWLDO
WHQHWVRIWKDWDQGWKHDQDO\VLVRIWKDWFDVHVWLOO
FRQWURO
$QGDSSO\LQJWKDWDQDO\VLV,FRPHWRWKH
FRQFOXVLRQWKDWWKHGHIHQGDQWV
PRWLRQLVZLOO
EHGHQLHGLQLWVHQWLUHW\,ZLOOWDNHDGYDQWDJH
RI0U+DUGHU
VRIIHUWRKDYH0U%ROOHDVXEPLW
IRUOLPLWHGLVVXHVRQDQRWKHUGHSRVLWLRQZLWK
UHVSHFWWRWKHPDWWHUVWKDWPD\KDYHEHHQUDLVHG
E\WKHUHOHDVHRIWKH)%,UHFRUGV%XWRWKHUWKDQ
WKDW,WKLQNWKDW
VDERXWDVIDUDVLWRXJKWWR
JR
05+$5'(57KDQN\RX
-8'*(&$6(1H[WPRWLRQ
05%(5/,1<RXU+RQRULI,FDQPDNHD
SRLQWIRUWKHUHFRUG
-8'*(&$6(<HVVLU
05%(5/,1,W
VP\XQGHUVWDQGLQJWKDWWKDW
FDVHDSSOLHVWRZKHUHWKHUHLVDGLVPLVVDO
VDQFWLRQUHTXHVWHGEXWWKDWWKHIDFWRUVWKDWDUH
RXWOLQHGWKHUHDUHQRWOLPLWLQJIRURWKHUVRUWVRI
OHVVHUVDQFWLRQV$QG,MXVWZDQWWRPDNHWKDWRQ
WKHUHFRUG
-8'*(&$6(7KHFDVHLQVWUXFWVWKHWULDO
FRXUWWRDSSO\WKHOHDVWRIIHQVLYHVDQFWLRQWR
DFFRPSOLVKWKHJRDODQGLWJRHVWKURXJKWKHZKROH
&RQILGHQWLDO
ODXQGU\OLVWRIWKHDQDO\VLV$WWKLVSRLQWLQ
WLPH,
PMXVWQRWFRQYLQFHGWKDWWKHLVVXHVWKDW
KDYHEHHQUDLVHGKHUHWRGD\ULVHWRWKHOHYHORI
DQ\VDQFWLRQV
1H[WPRWLRQ
05+$5'(5<RXU+RQRUWKDQN\RX7XUQLQJ
WRRXUPRWLRQIRUSURWHFWLYHRUGHUWKHUHDUHWZR
LVVXHVWKDWZHSUHVHQWHG2QHLVUHJDUGLQJ,
EHOLHYHLW
VILYHZRUGVWKDWZHUHUHGDFWHGRXWRI
DGRFXPHQWSURGXFWLRQZKLFKZDVWKHVXPPDU\RI
WKHDOOHJHGVH[WDSHVE\WKHH[WRUWLRQLVW$QG
ZKHQZHVXESRHQDHGWKH'RQ%XFKZDOG$JHQF\IRU
WKHLUGRFXPHQWVWKH\KDSSHQHGWRKDYHWKHVDPH
VXPPDU\IURPWKHH[WRUWLRQLVWLQWKHLUSRVVHVVLRQ
$QGVRZKHQWKH\SURGXFHGWKHLUGRFXPHQWVLWKDG
WKDWVDPHLWZDVYLUWXDOO\DQLGHQWLFDO
VXPPDU\$QGERWKVHWVDQG0U%ROOHDPDGH
UHIHUHQFHWRWKDW
6RZHUHGDFWHGRXWFHUWDLQZRUGVWKDW,
EHOLHYHDUHFRQVLVWHQWZLWK\RXUSULRURUGHUZKHQ
ZHZHUHDW%XEED&OHP
VGHSRVLWLRQZKHUHWKH
TXHVWLRQZDVDVNHG'LG0U%ROOHDHYHUXVHWKH
1ZRUG"$QGZHKDGDUHODWLYHO\OHQJWK\
GLVFXVVLRQRYHUWKDWLVVXHDQGZKHWKHULWFRXOG
LQTXLUHGLQWR$QG<RXU+RQRU
VUXOLQJZDVWR
&RQILGHQWLDO
VXVWDLQRXUREMHFWLRQ
6RZKHQZHFDPHDFURVVWKHVDPHW\SHRI
ODQJXDJHWKDWZDVLQWKHVHVXPPDULHVE\WKH
H[WRUWLRQLVWDQGZLWKLQWKHSRVVHVVLRQRIWKH'RQ
%XFKZDOG$JHQF\ZKLFKZDVHVVHQWLDOO\WKHVDPH
WKLQJZHUHGDFWHGRXWWKRVHZRUGV$QG,EHOLHYH
LW
VILYHZRUGV
,KDYHLI\RX
UHLQWHUHVWHGLQVHHLQJD
YHUVLRQWKDWVKRZV<RXU+RQRUWKHVHZRUGVWKDWDUH
WKHH[DFWZRUGVWKDWZHUHGDFWHGRXW,ZRXOG
OLNHWKHPQRWWREHRQWKHUHFRUGEXWMXVWIRU
\RXUSHUXVDOWRKHOS\RXXQGHUVWDQGH[DFWO\ZKDW
ZHUHGDFWHGRXWDQGH[DFWO\ZKHUHLWZDVUHGDFWHG
RXWRIWKHGRFXPHQW6RLI\RXZDQWWRPDNHD
GHWHUPLQDWLRQDVWRDOORIWKHPRUVRPHRIWKHP
LW
VHQWLUHO\LQ\RXUSRVVHVVLRQDQGXSWR\RXDV
WRKRZWRGRLW
7KHUDFLDOO\RIIHQVLYHODQJXDJHKDVQRWKLQJ
WRGRZLWKWKLVFDVH,W
VKLJKO\SUHMXGLFLDO
,W
VDOOKHDUVD\EHFDXVHWKLVLVFRPLQJIURPDQ
H[WRUWLRQLVWZKRLVUHDGLQJDQDOOHJHGWDSH
WKDW
V,JXHVVOLVWHQLQJWRDQDOOHJHGWDSHDQG
WKHQSXWWLQJGRZQDQDOOHJHGVXPPDU\RIWKDW
DOOHJHGWDSHLW
VKHDUVD\LQDQ\HYHQWDQG,
GRQ
WVHHKRZLWZRXOGHYHUPDNHLWLQWR
&RQILGHQWLDO
DGPLVVLEOHHYLGHQFH
,W
VSHULSKHUDOWRWKHFDVHEHFDXVHWKHWDSH
WKDW*DZNHUUHFHLYHGDQGWKH\UHFHLYHGWKHWDSH
IURPWKH'RQ%XFKZDOG$JHQF\:HOOOHWPHEDFN
XS/HWPHEDFNXS,ZDQWWREHDFFXUDWHKHUH
7KH'RQ%XFKZDOG$JHQF\DQG7RQ\%XUWRQZKR
LVWKHDJHQWDSSDUHQWO\DVZH
YHOHDUQHGWKURXJK
GLVFRYHU\DQG*DZNHUZDVQRWIRUWKFRPLQJZLWK
LQIRUPDWLRQDWILUVWDQGLWWRRNHLJKWPRQWKVWR
JHWWKLVLQIRUPDWLRQ
%XW7RQ\%XUWRQWKHDJHQWIURP%XFKZDOG
FRQWDFWHG*DZNHU
VHGLWRULQFKLHI$-'DXOHULR
DQGVDLGWRKLP:HKDYHDFOLHQWZKRKDVDYHU\
VLJQLILFDQW'9'DQGZHZDQWWRRUWKHFOLHQW
ZDQWVWRJHWWKLV'9'WR\RX:KDW
V\RXU
DGGUHVV"
$QGWKHQDGD\RUVRODWHU*DZNHUKDV
SRVVHVVLRQRIWKH'9'WKDWFDPHLQWKURXJKWKH
PDLOZLWKQRUHWXUQDGGUHVVRQLW$QGWKHQWKHUH
ZHUHHPDLOFRPPXQLFDWLRQVWKDWWKH\SURGXFHG
HLJKWPRQWKVDIWHUZHKDGDVNHGIRUWKHPEHWZHHQ
$-'DXOHULRWKHHGLWRULQFKLHIDQG7RQ\
%XUWRQWKHDJHQWWDONLQJDERXWWKLVWDSH
$QGZKHQZHVXESRHQDHGWKH'RQ%XFKZDOG
$JHQF\DIWHUWKH\KDGVXSSOLHGXVZLWKWKHVH
&RQILGHQWLDO
WKLQJVHLJKWPRQWKVGRZQWKHURDGWKHQZHHQGHG
XSZLWKWKLVVDPHVXPPDU\6RLWDSSHDUVWRXV
WKH'RQ%XFKZDOG$JHQF\ZDVSDUWRIZKDWWKH
H[WRUWLRQLVWZDVWU\LQJWRGR6RWKDW
VMXVWD
OLWWOHELWRIEDFNJURXQG
%XWWKHWDSHWKDW*DZNHUKDVDQGSURGXFHGWR
XVWKDW
VKRZZHJRWWKLVWDSH,WGRHVQ
W
KDYHDQ\RIWKHVHZRUGVWKDWDUHDWLVVXHKHUH
7KH\QHYHUKDGSRVVHVVLRQRIDQ\WDSHVWKDWKDG
WKHVHZRUGVLQWKHP7KH\QHYHUZKHQWKH\
HGLWHGWKHLUYLGHRGRZQWRDVKRUWHUYLGHRLW
GLGQ
WLQFOXGHDQ\RIWKHVHUDFLDOZRUGVLQWKHP
,DVVXPHLQSDUWEHFDXVHWKH\QHYHUKDG
SRVVHVVLRQRIWKHDQ\YLGHRWKDWKDGWKHVH
ZRUGV
$QGZKHQ*DZNHUZURWHDQDUUDWLYHDVWRU\
LI\RXZLOODERXWWKHVH[YLGHRWKDWWKH\ZDWFKHG
DQGWKH\ZDQWHGWRSURYLGHDSOD\E\SOD\RI
ZKDW
VRQWKHIXOOPLQXWHYLGHRWKDW
DFFRPSDQLHVWKHLUYLGHRRIWKHVKRUWYHUVLRQWKH\
QHYHUVDLGDQ\WKLQJDERXWDQ\WKLQJDERXWUDFH
6RRXUFODLPVDJDLQVWWKHPKDYHWRGRZLWK
WKHYLGHRWKDWWKH\XVHGDQGGRQRWSHUWDLQWR
UDFH7KHLUGHIHQVHVWRRXUFODLPVSHUWDLQWR
WKHLU)LUVW$PHQGPHQWGHIHQVHVWKHLUFODLPVWKDW
&RQILGHQWLDO
LW
VQHZVZRUWK\WKHLUFODLPVWKDWWKHVH[WDSHLV
RISXEOLFLQWHUHVWWKDWWKHLUFODLPVWKDW
0U%ROOHDVXSSRVHGO\ZDLYHGKLVULJKWVRUKDGQR
SULYDF\WREHJLQZLWKRUWKDWLW
VQRWRIIHQVLYH
RULW
VH[WUHPHO\RIIHQVLYHZKDWHYHUWKHGHIHQVH
LVWHFKQLFDOO\
%XWWKHVHZRUGVWKDWZHUHGDFWHGRXW
FRQVLVWHQWZLWK\RXUSULRUUXOLQJGRQ
WKDYHWR
GRZLWKRXUFODLPV7KH\GRQ
WKDYHWRGRZLWK
WKHLUGHIHQVHV7KH\GRQ
WKDYHWRGRZLWKWKH
YLGHRWKDWZDVSRVWHG$QGWKHVXEVWDQWLDO
FRQFHUQWKDWZHKDYHIRUDQ\RQHZKRUHDGVDQG
IROORZVWKHSUHVVDQGVHHVZKDWKDSSHQHGWR3DXOD
'HHQZKHQVKHZDVDVNHGDERXWWKHTXHVWLRQ'LG
\RXHYHUXVHWKH1ZRUGLWZDVDFWXDOO\D
UDFLDOGLVFULPLQDWLRQFDVHZKHUHWKDWLVVXH
DFWXDOO\ZDVSDUWRIWKHFDVHDQG,EHOLHYHVKH
VDLG\HV$QGWKHQWKHQH[WWKLQJ\RXNQRZKHU
HQWLUHHPSLUHFRPHVFUXPEOLQJGRZQ
$QGDPRUHUHFHQWH[DPSOHLV'RQ6WHUOLQJ
ZKHUHVKHWDSHVKLPVD\LQJVRPHWKLQJWKDW
V
UDFLDOO\LQVHQVLWLYHDQGSRVWVLWWRWKH,QWHUQHW
DQGWKHQKHORVHVKLVULJKWWREHLQEDVNHWEDOO
HYHUDJDLQDQGKDVWRSD\LQVDQFWLRQV
DQGKDVWRGLYHVWKLPVHOIRIHYHU\WKLQJWKDWKDV
&RQILGHQWLDO
WRGRZLWKEDVNHWEDOO
$VZHSUHVHQWHGDWWKH%XEED&OHPGHSRVLWLRQ
WKHVWDNHVDUHYHU\KLJKRQDQLVVXHOLNHWKLV
$QGMXVWWRFODULI\ZH
UHQRWDGPLWWLQJWKDWWKLV
ZRUGRUWKHVHIHZZRUGVZHUHHYHUXWWHUHGE\
0U%ROOHD7KHVHWKLQJVVKRZXSRQDQ
H[WRUWLRQLVW
VVXPPDU\RIDOOHJHGWDSHVWKDWDUH
QRWHYHQDWLVVXH
%XWEHFDXVHWKHVWDNHVDUHVRKLJKZHKDYH
WRSURWHFWRXUFOLHQWIURPDVLWXDWLRQOLNHWKLV
WKDWZHKDYHVHHQKDSSHQWRRWKHUV$QG
SDUWLFXODUO\JLYHQWKDWWKHVHZRUGVDUHQRW
UHOHYDQWWRWKHFDVHQRWUHDVRQDEO\FDOFXODWHGWR
OHDGWRDGPLVVLEOHHYLGHQFHZHWKLQNLWZDV
DSSURSULDWHWKDWZHUHGDFWHGRXWWKHVHZRUGV$QG
ZHWKLQNLW
VDSSURSULDWHWKDW<RXU+RQRUPDGHWKH
UXOLQJWKDW\RXGLGDW%XEED&OHP
VGHSRVLWLRQ
:HGRQ
WWKLQNWKDWLIWKHVHZRUGVDUHGLVFORVHG
WR*DZNHUWKDWWKH\DUHJRLQJWROHDGWRDQ\WKLQJ
WKDW
VDGPLVVLEOHLQWKHFDVH:HDUHQRWWU\LQJ
WRSUHYHQW*DZNHUIURPJHWWLQJDQ\WKLQJWKDW
V
UHOHYDQWLQWKHFDVH
,W
VP\XQGHUVWDQGLQJWKDW*DZNHUREWDLQHG
GLUHFWO\IURPWKH%XFKZDOG$JHQF\DQXQUHGDFWHG
YHUVLRQRIZKDWZHKDYHEURXJKWDPRWLRQIRU
&RQILGHQWLDO
SURWHFWLYHRUGHURYHU6RLW
VP\XQGHUVWDQGLQJ
WKH\DOUHDG\KDYHSRVVHVVLRQRIZKDWZH
UH
ILJKWLQJRYHU
%XWSDUWRIWKHSURWHFWLYHRUGHULVWKDW,
ZRXOGOLNHWKHUHWREHDSURWHFWLYHRUGHUWKDW
WKH\DEVROXWHO\FDQQRWXVHWKDW,WKLQNLWZRXOG
EHDSSURSULDWHIRUWKHPWRSRVVHVVDUHGDFWHG
YHUVLRQUDWKHUWKDQDQXQUHGDFWHGYHUVLRQDQGWR
H[FKDQJHWKHLUXQUHGDFWHGZLWKDUHGDFWHGYHUVLRQ
WRSUHYHQWDJDLQVWWKHVLWXDWLRQWKDWZHDUH
IHDUIXORIWKDWWKHUHFRXOGEHDEXVHV
SDUWLFXODUO\ZKHQ\RXKDYHDQRUJDQL]DWLRQ,
GRQ
WPHDQWRUDNHWKHPRYHUWKHKRWFRDOVEXW,
MXVWKDYHWRVD\ZKDWLVWKHFDVHZKLFKLVWKDW
*DZNHULVDQHZVRUJDQL]DWLRQWKDWSXEOLVKHV
VDODFLRXVGHWDLOVDERXWSHRSOH,WSRVWHGWKH
+XON+RJDQVH[WDSHZLWKRXWDQ\TXHVWLRQVDVNHG
DQGOHIWLWRXWWKHUHZKHQGHPDQGVZHUHPDGHWKDW
LWEHUHPRYHG
,WSRVWHGQXGHYLGHRVRI5HEHFFD*D\KHDUWDQG
KHUKXVEDQGZKHQWKH\ZHUHLQDKRWWXEDQGD
YLGHRRIWKDWQDNHGZLWKDQRWKHUSHUVRQDQGD
YLGHRRIWKDWFDPHLQWRWKHLUSRVVHVVLRQ7KH\
LPPHGLDWHO\SRVWHGLWDQGWKH\JRWVXHGRYHULW
7KHUHDUHRWKHUH[DPSOHVWKDWZHSURYLGHGRI
&RQILGHQWLDO
SXEOLVKLQJSKRWRVRI%UHWWWKHIRRWEDOOSOD\HU
%UHWW)DYUH
VSHQLVDQGSRVWLQJRWKHUSLFWXUHVRI
SHRSOH
VSHQLVHVDQGWKHQPRFNLQJLWPRFNLQJ
WKRVH$QGZHSURYLGHGH[DPSOHVLQRXUSDSHUV
6RLWLVDUHDOLVWLFFRQFHUQWKDWZHKDYH
WKDWDGHIHQGDQWWKDWLVVRDJJUHVVLYHLQWKHLU
GHIHQVHRIWKLVFDVHZKHUHLQRXUYLHZWKH\DUH
GRLQJHYHU\WKLQJLQWKHLUSRZHUWRVWRSWKLVFDVH
IURPJRLQJWRWULDOWRVWRS0U%ROOHDIURP
KDYLQJKLVGD\LQFRXUWZKHUHWKHLURZQUHFRUGLV
WKDWWKH\KDYHYHU\OLWWOHUHJDUGLIQRW]HUR
UHJDUGIRUSHRSOH
VSULYDF\
,WKLQN,SXWLQRWKHUSDSHUVLQWKHSDVW
WKDWWKH&(21LFN'HQWRQZDVLQWHUYLHZHGE\
3OD\ER\$QGDTXHVWLRQZDVDVNHGRIKLP,VLW
WUXHWKDW*DZNHUJLYHVOHVVHUUHJDUGRISULYDF\WR
SHRSOH"
$QGKLVDQVZHUZDV,GRQ
WWKLQNSHRSOHJLYH
DIXFNDERXWSULYDF\
$QGWKDW
VWKHDWWLWXGHRIWKLVSDUWLFXODU
GHIHQGDQWDQGWKDWLVZK\WKDWZHIHHOLW
VVXFK
DQLPSRUWDQWWKLQJWKDWZHKDYHWRGRWRSURWHFW
0U%ROOHD
VSULYDF\EHFDXVHWKHUHDVRQZH
UHDOO
KHUHLVEHFDXVHRIWKHLULQYDVLRQRIKLVSULYDF\
$QGLWZRXOGEHWUHPHQGRXVO\XQIDLULIWKLV
&RQILGHQWLDO
OLWLJDWLRQRYHUFRUUHFWLQJWKHZURQJWKDW
VEHHQ
GRQHDOORZLQJKLPWRVHHNUHGUHVVDQGEHPDGH
ZKROHLVXVHGDVDYHKLFOHIRU*DZNHUWRREWDLQ
PRUHLQYDVLRQVRIKLVSULYDF\DQGPRXQWVRPHVRUW
RIFDPSDLJQDJDLQVWKLPZKLFKPD\EHWKH\DUH
KROGLQJEDFNRQXQWLODIWHUWKHFDVHLVGRQHRU
PD\EHWKH\
UHKROGLQJEDFNRQXQWLOWKHSURSHU
WLPHGXULQJWKHFDVHRUPD\EHWKH\DUHSODQQLQJ
WRXVHLWLQVRPHVRUWRIDVHWWOHPHQWQHJRWLDWLRQ
RIVRPHW\SH
,WKDVEHHQXVHGLQWKHSDVWLQVHWWOHPHQW
QHJRWLDWLRQVZKHUHLWZDVVWDWHGWKDWWKH\KDYHD
ORWPRUHYLGHRRQWKDWPLQXWHVDQGLIWKLV
FDVHLVQ
WVHWWOHGWKHQWKH\KDYHSODQVRU
LQNOLQJVWRSXEOLVKPRUHRIWKHVH[WDSH
:KHQ,KHDUWKLQJVIURP*DZNHUDORQJWKRVH
OLQHV
05%(55<$UH\RXWDONLQJDERXWRXUFDVH"
05%(5/,1:DLWDPLQXWH
057+20$6<RXU+RQRUVHWWOHPHQW
QHJRWLDWLRQVDUHQHYHUSHUPLVVLEOHWREH
GLVFXVVHG
05+$5'(5,VWKDWWUXH"
057+20$6<HDKWKDWLVWUXH
-8'*(&$6(,QWKHSUHVHQFHRIWKHMXU\
&RQILGHQWLDO
05+$5'(5,QWKHSUHVHQFHRIWKHMXU\
:HOOWKHMXU\LVQRWKHUH
05785.(//HW
VEHFOHDU7KH\
UHQRW
DGPLVVLEOHIRUOLDELOLW\RUGHIHQVHRIOLDELOLW\
7KH\FDQEHDGPLVVLEOHIRURWKHUSXUSRVHV
-8'*(&$6(5LJKW
05785.(/,PHDQWKDW
VQRWDQDEVROXWH
057+20$66RZHFDQJHWWKH%XEED
VHWWOHPHQWKHDULQJ"
05785.(/,
PQRWJRLQJWRDUJXHZLWK\RX
-8'*(&$6(/HW
VOHWKLPILQLVKKLV
DUJXPHQW
05%(5/,1&DQ,MXVW,MXVWZDQWWRVD\
RQWKHRUGHUDQGWKHQZHFDQOHWWKDWJR
WKDWWKDWLVDFRPSOHWHDQGXWWHUIDEULFDWLRQ
VLQFH
-8'*(&$6(,KHDUGLWUDLVHGDVD
K\SRWKHWLFDOWKDW*DZNHUFRXOGGRWKLV
05%(5/,1,XQGHUVWRRGKLPWRVD\*DZNHU
KDVWKUHDWHQHGWRGRWKDW
-8'*(&$6(,KHDUGLW
05%(5/,1DQGWKDWLVLQIDFWQRWDW
DOOWUXH
-8'*(&$6(,KHDUGLWDGGUHVVHGLQWKH
&RQILGHQWLDO
K\SRWKHWLFDOVHQVH
05%(5/,1,I\RX
UHWDNLQJLWWKDWZD\
WKHQ\RXKDYHLWFRUUHFWEHFDXVHZHGLGQ
WUDLVH
WKDW
'LVFXVVLRQRIIWKHUHFRUG
05+$5'(5,
PKDSS\WROHDYHLWDWWKDW
%XWLIZHZDQWWRJHWLQWRWKDWLVVXH,ZLOOHYHQ
WHVWLI\XQGHURDWK%XW,ZRXOGUDWKHUMXVWOHDYH
LWZKHUH\RXOHIWLW<RXU+RQRU
7KHIDFWRIWKHPDWWHULVWKH\GRKDYH
DQRWKHUDQGDKDOIPLQXWHVRIVH[YLGHRDQG
WKHUHLVQRFRXUWRUGHUWKDWLVVWRSSLQJWKHPIURP
SXEOLVKLQJWKDWLIWKH\ZDQWHGWRGRWKDW
DOWKRXJKWKH\ZRXOGFHUWDLQO\EHKHDULQJIURPXV
LIWKH\GLGWKDW
%XWLQWKHVDPHFRQWH[WWKH\KDYHFRPH
DFURVVLQWKHFRXUVHRIGLVFRYHU\WKLV
H[WRUWLRQLVWZKRZDVVD\LQJFHUWDLQWKLQJV
VXSSRVHGO\VD\LQJWKDWWKHUHLVDYLGHRWDSHRXW
WKHUHWKDWWKH\VXSSRVHGO\KDYHLQWKHLU
SRVVHVVLRQRUJDYHRYHUWRODZHQIRUFHPHQWLQ
FRQQHFWLRQZLWKDVWLQJWKDWKDVWKHVHZRUGVRQ
LW
7KHVHZRUGVQRWEHLQJUHOHYDQWWRWKHFDVH
QRWEHLQJUHDVRQDEO\FDOFXODWHGEHLQJKLJKO\
&RQILGHQWLDO
SUHMXGLFLDO,FDQ
WLPDJLQHDQ\VFHQDULRZKHUH
WKHVHZRUGVHQGXSLQIURQWRIDMXU\,W
V
KHDUVD\XSRQKHDUVD\DQGWKHSRWHQWLDOIRU*DZNHU
WRPLVXVHWKHVHZRUGVHLWKHULQFRQQHFWLRQZLWK
VHWWOHPHQWRULQFRQQHFWLRQZLWKUHWULEXWLRQRU
VHHNLQJUHYHQJHDJDLQVW0U%ROOHDRUVHHNLQJWR
XVHWKHPWRSXWDQHQGWRWKHFDVHLQVRPHIDVKLRQ
RUDQRWKHUSRWHQWLDOO\DQGKHUHLVD
K\SRWKHWLFDOOHDNLQJWKHPWRVRPHRQHHOVHVR
WKDW*DZNHUFRXOGVD\:HOOLW
VQRWXVZKR
SXEOLVKHGLWLW
VVRPHERG\HOVHZKRSXEOLVKHGLW
WKLQJVOLNHWKDWFDQGHILQLWHO\KDSSHQLQWKH
ZRUOGRI,QWHUQHWDQG,QWHUQHWJRVVLSVLWHVVRPH
RIZKRPZRQ
WKHVLWDWHWRSXEOLVKKDUPIXOWKLQJV
DERXWIRONV
$QG,
PVXUHWKDW0U%ROOHD,
PVRUU\,
KDYHGRQHLWDJDLQ0U%HUOLQLVJRLQJWRVD\
ZHOOZHKDYHQ
WGRQHWKDWDQGZHSOHGJHQRWWRGR
WKDW%XWVWLOO,KDYHDMREWRGR,KDYHWR
SURWHFWP\FOLHQW,KDYHWRDYRLGDQ\VRUWRID
3DXOD'HHQVLWXDWLRQRU'RQDOG6WHUOLQJVLWXDWLRQ
RUDQ\WKLQJOLNHWKDWEDVHGXSRQKHDUVD\
VWDWHPHQWVIURPDQH[WRUWLRQLVWWKDWVHHPVWRKDYH
FRPHRXUZD\LQRXUFDVH
6RZHKDYHFLWHGFDVHVLQRXUSOHDGLQJVWKDW
&RQILGHQWLDO
VXSSRUWWKDWDSURWHFWLYHRUGHULVZDUUDQWHG
<RXU+RQRUKDVDOUHDG\UXOHGLQRXUIDYRURQWKLV
DQGZHZRXOGUHTXHVWDSURWHFWLYHRUGHUDVWRWKDW
LVVXH
$VIRUWKHSKRQHUHFRUGV,IHHOOLNH,PDGH
P\SRVLWLRQFOHDUDIHZPLQXWHVDJRDQG,GRQ
W
ZDQWWRUHSHDWP\VHOI%XWMXVWWRVXPPDUL]HWKDW
LVVXHLI<RXU+RQRUIHHOVWKDWWKHSUHIL[RI
SKRQHQXPEHUVRISHRSOHZKRKDYH]HURWRGRZLWK
WKLVFDVHVKRXOGEHGLVFORVHGWR*DZNHUZHZLOO
IROORZ\RXURUGHU
,EHOLHYHWKDW*DZNHUKDVHQRXJKLQIRUPDWLRQ
,WKDVWKHSKRQHQXPEHUVH[FHSWIRUWKUHHGLJLWV
$QGLILWZDQWVWRGHWHUPLQHWKDWDQ\RIWKRVH
SKRQHQXPEHUVLVDUHOHYDQWZLWQHVVLWKDVWKH
LQIRUPDWLRQWRGRWKDW$QG,ZLOOKDSSLO\
XQUHGDFWDVWRWKRVHLQGLYLGXDOVRULQGLYLGXDO
SKRQHFDOOVWKDWWKH\LGHQWLI\
,KDYHQRWKHDUGIURPWKHPDVWRDQ\
SDUWLFXODUSKRQHFDOOV,W
VDQRSHQLQYLWDWLRQ
IRUWKHUHVWRIWKLVFDVH,IDWDQ\WLPH\RX
GHWHUPLQHWKHUHLVDQLQGLYLGXDOZKRKDVDSKRQH
QXPEHUWKDWPDWFKHVXSZLWKVRPHWKLQJWKDW
VRQ
KLVFDOOORJVZHZLOOEHKDSS\WRXQUHGDFWDQG
SURGXFHWKDW
&RQILGHQWLDO
+RZHYHULQWKHPHDQWLPH,WKLQNLWLV
IROORZLQJWKHFRXUWRIDSSHDO
VGHWHUPLQDWLRQV
WKDWSHRSOHZKRDUHQRWZLWQHVVHVDQGQRWSDUWLHV
VKRXOGQRWKDYHWKHLUIXOOSKRQHQXPEHUVGLVFORVHG
LQGLVFRYHU\$QGWKDW
VDOOWKDWZHKDYHGRQHVR
IDU%XWLI<RXU+RQRUGLVDJUHHVZHZLOOSURGXFH
LWDOO
,GRQ
WNQRZLI0U%ROOHDLVJRLQJWR
PHQWLRQWKLVEXWZHKDYHREWDLQHGUHFRUGVIURP
KLVFHOOSKRQHFDUULHUDQGUHGDFWHGDQGSURGXFHG
DOORIWKRVHUHFRUGV:HKDYHVWLOOZHKDYH
PDGHUHTXHVWVWRJHWUHFRUGVIURPKLVODQGOLQH
FDUULHU$QG,EHOLHYH,KDYHWKLVULJKW:H
SURGXFHGFHOOSKRQHDQGDUHVWLOOZDLWLQJIRUWKH
ODQGOLQH,I,JRWWKDWVZLWFKHGDURXQG,
DSRORJL]H%XWWKHUHLVRQHFDUULHUZHKDYHPDGH
UHTXHVWVIURPWRREWDLQWKHSKRQHORJV
$QGDZKLOHEDFNEHIRUHDSKRQHFDOO
FRQIHUHQFHKHDULQJZLWK<RXU+RQRU0U%HUOLQ
VDLGWKDWKLVFDUULHUVDOORZKLPWRDFFHVVRQOLQH
KLVSKRQHUHFRUGV:HWULHGWKDW0U%ROOHD
V
FDUULHUGRHVQRWKDYHWKDWRSWLRQ:HFDQ
WMXVW
JRRQOLQHDQGJHWZHZRXOGKDYHGRQHLW:H
ZRXOGKDYHGRQHLWDORQJWLPHDJRLIWKDWZDVWKH
FDVH:H
UHQRWKROGLQJEDFNRQDQ\WKLQJ
&RQILGHQWLDO
$QGRQFHZHJHWWKHVHGRFXPHQWVZHZLOO
HLWKHUDFFRUGLQJWR\RXUGHWHUPLQDWLRQWRGD\
ZHZLOOHLWKHUUHGDFWRXWWKHSUHIL[HVDVWR
SHRSOHZKRDUHQRWWKDWZHFDQDVEHVW
GHWHUPLQHDUHQRWSDUWLHVQRWZLWQHVVHVEXW
OHDYLQJDOOWKHRWKHUUHVWRIWKHSKRQHQXPEHU
2ULI<RXU+RQRUVD\VWRSURGXFHLWDOOZH
OO
SURGXFHLWDOO7KHUH
VMXVWWKDWRQHLVVXHDVWR
WKHVHFRQGFDUULHUWKDWZH
YHPDGHUHSHDWHG
UHTXHVWVDQGIRUVRPHUHDVRQWKH\
UHWKHRQHV
GUDJJLQJWKHLUIHHWQRWXV
7KRVHDUHRXUWKDW
VRXUSRVLWLRQRQWKH
PRWLRQ
-8'*(&$6(2ND\
05%(55<<RXU+RQRU,
PJRLQJWRDUJXLQJ
WKLVRQH
-8'*(&$6(*UHDW
05%(55<,ZLOOWU\WREHEULHIRQERWKRI
WKHVHSRLQWV$QG,ZLOOVWDUWZKHUH0U+DUGHU
HQGHGZLWKUHVSHFWWRWKHSKRQHUHFRUGV
)RUERWKRIWKHVHLVVXHVWKHTXHVWLRQRI
ZKHWKHUVRPHWKLQJLVGLVFRYHUDEOHDV\RXNQRZLV
ZKHWKHUVRPHWKLQJLVUHDVRQDEO\FDOFXODWHGWROHDG
WRWKHGLVFRYHU\RIDGPLVVLEOHHYLGHQFH
:LWKUHVSHFWWRWKHVHWHOHSKRQHUHFRUGVDV
&RQILGHQWLDO
0U%HUOLQDQG0U+DUGHUDOUHDG\WDONHGDERXWLQ
WKHSULRUGLVFXVVLRQWKLVKDVDOUHDG\EHHQDUJXHG
WR<RXU+RQRU<RXUXOHGRQLW,W
VDOUHDG\
EHHQDUJXHGEHIRUH-XGJH&DPSEHOO6KH
VUXOHGRQ
LW7KHDUJXPHQWVKHUHDUHQRGLIIHUHQWWKDQZKDW
ZHUHEHLQJDUJXHGWR\RXSUHYLRXVO\7KLVKDV
DOUHDG\EHHQGHFLGHG7KHUHLVQRUHDVRQWREH
KHUHWRUHDUJXHLWDJDLQ7KH\KDYHQ
WEURXJKW
IRUZDUGDQ\QHZDUJXPHQWV
7KHRQO\WKLQJWKDW0U+DUGHUKHUHKDVVDLG
WKDWLVGLIIHUHQWLVWKDWWKH\KDYHUHGDFWHGWKLV
LQIRUPDWLRQDQGWKDWLIZHKDSSHQWRNQRZRI
DQ\ERG\ZKRPLJKWEHUHOHYDQWFRXOGILJXUHRXW
IURPWKRVHSKRQHQXPEHUVKHZRXOGEHKDSS\WR
SURYLGHWKHIXOOLQIRUPDWLRQ
%XWGLVFRYHU\LVQRWDJDPH,WUHPLQGVPH
RIWDONLQJWRP\NLGZKHQZHJRWRUHVWDXUDQWVDQG
WKH\JHWWKHOLWWOHSODFHPDWVZLWKJDPHVRQWKHP
ZLWKFRQQHFWWKHGRWVRQO\KH
VVD\LQJWKDWVRPH
RIWKHGRWVDUHJRLQJWREHWDNHQRXWRIWKLV
HTXDWLRQ6RLI\RXKDSSHQWRFRQQHFWWKHGRWV
DQGPD\EHVHHZKDWWKHSLFWXUHLV,
PJLYLQJ
\RXDOORIWKHQXPEHUVWKHQ,PLJKWEHDEOHWR
JLYH\RXWKDWSHUVRQ
7KHIDFWRIWKHPDWWHULVZH
UHHQWLWOHGWR
&RQILGHQWLDO
WKHLQIRUPDWLRQDWWKHEHJLQQLQJRIGLVFRYHU\WR
GHWHUPLQHZKHWKHUWKHUHLVDGPLVVLEOHHYLGHQFH
ZKHWKHU0U%ROOHDFRPPXQLFDWHGZLWKDQ\ERG\DERXW
WKHSXEOLFLW\DERXWWKHVH[WDSHVDERXWWKHVH[
WDSHVWKHPVHOYHVRUDQ\WKLQJHOVHWKDW
VUHOHYDQW
WRWKLVOLWLJDWLRQ
3DUWRIWKHGHIHQVHZLWKUHVSHFWWRWKH
VDQFWLRQVPRWLRQDQGDVZHKHDUG0U%ROOHD
WHVWLI\DWKLVGHSRVLWLRQLVKH
VQRWJRRGDW
QDPHVKH
VQRWJRRGDWGDWHVKHGRHVQ
WUHPHPEHU
WKLQJVKHGRHVQ
WUHPHPEHUZKRKHWDONHGWRDERXW
WKLV7KHVHSKRQHUHFRUGVFRXOGZHOOUHYHDOWKDW
LQIRUPDWLRQ
)RUXVWREHDEOHWRORRNDWKDOIDSKRQH
QXPEHUDQGWU\DQGVD\2K\HDKZHWKLQNWKDW
PLJKWEHWKLVSHUVRQ
VQDPHZKR\RXKDYHQ
W
GLVFORVHGWRXVLQWKHSDVWLW
VSRVVLEOHWKDW
\RXGLVFXVVHGWKLVZLWKWKLVSHUVRQZKRZHGRQ
W
HYHQKDYHWKHLUSKRQHQXPEHUDWWKLVSRLQW&RXOG
\RXOHWXVNQRZLIWKHLUSKRQHQXPEHULVRQKHUH"
7KDW
VQRWWKHZD\GLVFRYHU\ZRUNV7KHZD\WKDW
LWZRUNVLVWKDWWKH\SURYLGHLQIRUPDWLRQWKDWLV
UHDVRQDEO\FDOFXODWHGWROHDGWRDGPLVVLEOH
HYLGHQFH7KDW
VDOUHDG\EHHQUXOHGRQDQGWKDW
LQIRUPDWLRQVKRXOGEHSURYLGHGWRXVLQIXOO
&RQILGHQWLDO
:LWKUHVSHFWWRWKHILYHZRUGVIURPWKH
YDULRXVVXPPDULHVWKDWKDYHEHHQSURGXFHG,MXVW
ZDQWWRSURYLGHDOLWWOHELWRIEDFNJURXQGIDFWV
RQDFRXSOHRIWKLQJVWKDW0U+DUGHUVDLGZKLFK
NLQGRIVHWWKHWDEOHZLWKWKLV
:LWKUHVSHFWWRWKHGRFXPHQWVUHJDUGLQJ
7RQ\%XUWRQDQG7RQ\%XUWRQ
VLQYROYHPHQWLQWKLV
FDVH7RQ\%XUWRQZDVWKLVDJHQWZKRJRWLQWRXFK
ZLWK*DZNHU,ZDVQ
WLQYROYHGLQWKHFDVHLQWKH
EHJLQQLQJ,W
VP\XQGHUVWDQGLQJWKDWLQWKH
LQLWLDOGRFXPHQWWKDWLQWKHLQLWLDOGLVFRYHU\
UHVSRQVHVWKDWZHSURYLGHGZHSURYLGHG
7RQ\%XUWRQ
VQDPHDVEHLQJWKHSHUVRQZKRJRWLQ
WRXFKZLWK0U'DXOHULR:HSURYLGHGWKHQDPHRI
0U%XUWRQ
VFOLHQWDVWKHRQHZKRJRWLQWRXFK
ZLWK0U%XUWRQ$QGWKHQZHSURGXFHGWKHHPDLOV
EDFNDQGIRUWKEHWZHHQ0U%XUWRQDQG0U'DXOHULR
WKDW0U+DUGHUUHIHUUHGWR$OORIWKDWZDV
SURGXFHGDWWKHRXWVHWRIWKHOLWLJDWLRQEHIRUH
0U'DXOHULR
VGHSRVLWLRQ+HZDVDVNHGDERXWDOO
WKDWLQIRUPDWLRQDQGLW
VJRQHEDFNVRPHWLPH
7KHVHFRQGWKLQJWKDW0U+DUGHUVDLGLVZLWK
UHVSHFWWRWKHVHGRFXPHQWVWKDWZHUHSURGXFHGE\
WKHDOOHJHGH[WRUWLRQLVWDQGWKHGRFXPHQWVWKH
VXPPDU\WKDWZDVSURYLGHGWRXVE\WKH
&RQILGHQWLDO
'RQ%XFKZDOG$JHQF\LVWKDWWKH\DUHYLUWXDOO\
LGHQWLFDO7KH\DUHYLUWXDOO\LGHQWLFDOWRWKH
H[WHQWWKDWWKH\ERWKVHHPWRGHDOZLWKWZRRIWKH
WKUHHWDSHV7KHWDSHVWKHVXPPDULHVWKDWFRPH
IURPWKH)%,WDONDERXWWKUHHWDSHV7KH%XFKZDOG
GRFXPHQWVUHIHUWRWZRWDSHV
7KHVXPPDULHVVXEVWDQWLYHO\DUHVLPLODULQ
WKDWWKH\NLQGRIJLYHWKHVDPHSOD\E\SOD\
PLQXWHE\PLQXWHGHVFULSWLRQEXWWKHGHVFULSWLRQ
WKHDFWXDOZRUGVXVHGWKURXJKRXWDUHGLIIHUHQW
7KHUHDUHWZRVHSDUDWHGRFXPHQWVDSSDUHQWO\
FUHDWHGE\WZRVHSDUDWHLQGLYLGXDOVWZRVHSDUDWH
WLPHV:HGRQ
WNQRZZKHUHWKH\RULJLQDWHG
QHFHVVDULO\EXWWKH\
UHQRWYLUWXDOO\LGHQWLFDO
H[FHSWWKH\UHFRXQWWKHVDPHNLQGRIVXEVWDQFH
WKDWZDVRQWKRVHWDSHV
2QWKHPHULWRIZKDWLVEHLQJDUJXHGKHUH
DJDLQ<RXU+RQRUDQG-XGJH&DPSEHOOKDYHDOUHDG\
RUGHUHGWKHSURGXFWLRQRIIXOODQGFRPSOHWH
UHFRUGVUHODWLQJWRWKLV)%,LQYHVWLJDWLRQ
$JDLQZH
YHEHHQEDFNDQGIRUWKDOUHDG\DERXWWKH
QDWXUHRIWKRVHUXOLQJV
$WQRSRLQWGXULQJWKHLQLWLDOGLVFRYHU\
UHVSRQVHVDQGWKHOLWLJDWLRQRQWKRVHRULQWKH
VXEVHTXHQWRQHVSHUWDLQLQJWRODZHQIRUFHPHQW
&RQILGHQWLDO
UHFRUGVZDVDQ\REMHFWLRQUDLVHGZLWKUHVSHFWWR
SULYDF\HPEDUUDVVPHQWRUDQ\RIWKLV$WQR
SRLQWHYHQLQDQH[SDUWHRULQDQLQFDPHUD
GLVFXVVLRQZLWK-XGJH&DPSEHOOGXULQJWKHKHDULQJ
RQWKLVZDVWKDWUDLVHG2QO\DIWHUWKHGRFXPHQWV
ZHUHRUGHUHGWREHSURGXFHGGLGWKH\UDLVHWKLV
LVVXH
$JDLQLW
VQRWWKHZD\LWZRUNV:H
YH
DOUHDG\JRQHGRZQWKLVURDG7KHSULQFLSDO
DUJXPHQWWKDW0U+DUGHUVHHPVWRPDNHDQG,
JXHVVWKHUHLVWZR7KHILUVWLVWKDWZHGHIHQG
*DZNHUDQG*DZNHUSXEOLVKHVVDODFLRXVVWXIIDQG
WKDWLWSXUSRUWHGO\LQYDGHVSHRSOH
VSULYDF\
7KDWPD\ZHOOEHWKHFDVH7RVRPHGHJUHHWKDW
PD\ZHOOEHWKHLUYLHZRI*DZNHU%XWWKHVLQJOH
LVVXHKHUHLVZKHWKHUWKH\KDYHDQREOLJDWLRQWR
SURGXFHWRXVRQDQDWWRUQH\
VH\HVRQO\EDVLV
LQIRUPDWLRQWKDW
VDOUHDG\EHHQRUGHUHGWREH
SURGXFHGQRWWR*DZNHUQRWWRRXUFOLHQWVQRW
WRWKHSXEOLFWRWKHODZ\HUVRQDQ
DWWRUQH\
VH\HVRQO\EDVLV
0U+DUGHUDVNHGIRUWKDWWREHJLYHQWR
WKDWSURWHFWLRQWREHJLYHQWRWKHVHUHFRUGV
-XGJH&DPSEHOOLQVWUXFWHGLW
0U%HUOLQDWWKDWKHDULQJVDLG:HZRXOGEH
&RQILGHQWLDO
LQKRWZDWHULIZHYLRODWHWKDW
6KHVDLG<HV\RXZRXOG
,W
VQRWDTXHVWLRQRIZKHWKHUWKLV
LQIRUPDWLRQJRHVWR*DZNHU,W
VFOHDU7KHOLQH
VWRSVZLWKWKRVHSHRSOHVLWWLQJDWWKLVWDEOHDQG
WKRVHSHRSOHZKRKDYHEHHQDGPLWWHGWRUHSUHVHQW
*DZNHULQWKLVFDVHDVRIILFHUVRIWKHFRXUW
7KHVHFRQGUHDVRQWKDWWKH\KDYHRIIHUHGLV
WKDWWKHVWXIILVQRWWKDWWKLVVWXIILVQRW
UHOHYDQWDQGXOWLPDWHO\LVQRWJRLQJWREH
DGPLVVLEOHWKDWLW
VKHDUVD\WKDWLW
V
SUHMXGLFLDOWKDWLW
VQRWUHOHYDQWDQGDOORI
WKHVHVRUWVRIWKLQJV7KHLVVXHQRZLVQRW
ZKHWKHUDWWKHHQGRIWKHGD\WKDWWKHVH
VWDWHPHQWVRUWKDWWKHVHGRFXPHQWVDUHJRLQJWREH
SXWEHIRUHDMXU\7KHTXHVWLRQLV$UHWKH\
UHDVRQDEO\FDOFXODWHGWROHDGWRDGPLVVLEOH
HYLGHQFH"
7KHNH\VWDWHPHQWDWLVVXHKHUHWKHNH\
VWDWHPHQWDWLVVXHLV0U&OHPPDNLQJWKLV
VWDWHPHQWWKDWZHKDYHWKLVVWXIIDQGLIZHHYHU
ZDQWWRUHWLUHWKDWLQFOXGHVWKHUHGDFWHG
LQIRUPDWLRQWKDWKDVEHHQWDNHQRXWRIWKRVH
GRFXPHQWV7KDWVWDWHPHQWLVWKHH[DFWUHDVRQ
WKDW-XGJH&DPSEHOORUGHUHGWKHWDSHVWREH
&RQILGHQWLDO
SUHVHUYHGDQGVDLGWKDWWKLVVWXIIZDVUHOHYDQW
1RZLWWXUQVRXWWKDWKHZDVQ
WWDONLQJDERXW
VH[KHZDVWDONLQJDERXWVRPHWKLQJGLIIHUHQWDQG
WKHUHDVRQWKDWWKH\KDGYDOXH
%XWWKDWVWDWHPHQWZDVWKHUHDVRQZK\
0U&OHPIRXQGKLPVHOIRQWKLVVLGHRIWKH9
LQLWLDOO\7KHUHDVRQWKDW0U+RJDQVXHG
0U&OHPDVERWKRIWKHPWHVWLILHGLQWKH
GHSRVLWLRQZDVEHFDXVHRIWKDWUHSRUWHG
VWDWHPHQW
3ODLQWLIIRQO\VXHG*DZNHUDIWHUWKDW
VWDWHPHQWKDGEHHQUHSRUWHGLQWKHPHGLD,W
HVWDEOLVKHVDWOHDVWKDVWKHDELOLW\WROHDGWR
DGPLVVLEOHHYLGHQFHWKDWWKH&OHPVILOPHG
0U%ROOHDDQGLWSRWHQWLDOO\VKRZVWKDW0U&OHP
ZDVO\LQJDWKLVGHSRVLWLRQDERXWKRZPDQ\WDSHV
WKHUHZHUH7KLVLQIRUPDWLRQVKRZVWKDWWKHUHLV
DSSDUHQWO\WKUHHWDSHV+HWHVWLILHGTXLWH
FOHDUO\WKDWWKHUHZDVRQO\RQH
0U+DUGHUSRLQWHGWR<RXU+RQRU
VUXOLQJV
ZLWKUHVSHFWWRWKHIRUWKH1ZRUGDWWKH
GHSRVLWLRQ7KHFRQWH[WRIWKDWTXHVWLRQDQGWKH
FRQWH[WRIWKHGLVFXVVLRQRIWKHGHSRVLWLRQZDV
YHU\GLIIHUHQWWKDQZKDWZHQRZNQRZLWLV$W
WKDWSRLQWZHKDGDSRVWLQJRQDZHEVLWH:H
&RQILGHQWLDO
GLGQ
WNQRZWKHFRQWH[W$QGWKHEDVLVRIP\
TXHVWLRQZDV+DYH\RXHYHUKHDUG0U+RJDQXVH
WKH1ZRUG"$QGWKDWZDVZKDWZDVREMHFWHGWR
DQGWKDWZDVZKDW\RXUUXOLQJZDVVXVWDLQHGRQ
$WWKDWSRLQWZHGLGQ
WNQRZWKDWWKHUHZHUH
VXPPDULHVRIWKHVHWDSHV:HGLGQ
WNQRZWKDW
WKHVHZRUGVZHUHXVHGRUSRWHQWLDOO\XVHGRQWKRVH
WDSHV$QGWKHRQO\UHDVRQWKDWZHGLGQ
W
XQGHUVWDQGWKHFRQWH[WDQGNQRZKRZWKDWWKLQJ
FDPHXSDQGZK\LWVKRZHGXSRQDZHEVLWHZH
ZHUHQ
WDZDUHRILW%XWDWWKDWSRLQWDWOHDVW
0U+RXVWRQZDV3RWHQWLDOO\0U%ROOHDZDV$QG
FHUWDLQO\0U&OHPZKRGLGWKHILOPLQJDQGPDGH
WKHFRPPHQWXQGHUVWRRGZK\WKDWZHEVLWHKDG
SRVWHGWKDWLQIRUPDWLRQ%XWZHZHUHQ
WDZDUHRI
LW7KDWUXOLQJGRHVQRWGLFWDWHWKHRXWFRPH
RIRUJLYHWKHPWKHDELOLW\WRUHGDFWWKDW
LQIRUPDWLRQRXWRIWKHVHGRFXPHQWV
0U+DUGHUDOVRVXJJHVWHGWKHUHLVQR
HYLGHQFHWKDW0U%ROOHDPDGHWKHVHFRPPHQWV$QG
WKDWPD\ZHOOEHWKHFDVH:HGRQ
WNQRZ%XWZH
ZHUHQHYHUDOORZHGWRDVNWKHTXHVWLRQ:HGLGQ
W
KDYHWKHFRQWH[WZLWKLQZKLFKWRDVNWKH
LQIRUPDWLRQ$QGWKDW
VWKHRQO\UHDVRQWKDWZH
GRQ
WNQRZ
&RQILGHQWLDO
$JDLQDWWKHHQGRIWKHGD\WKHSODLQWLII
FODLPVWKDWWKLVLVQRWJRLQJWREHDGPLVVLEOH
WKDWWKHVHWKLQJVDUHKLJKO\SUHMXGLFLDOKHDUVD\
DQGZKDWQRW%XWWKDWTXHVWLRQFDQRQO\EH
DGGUHVVHGDIWHUDIXOOIDFWXDOUHFRUGLVPDGH
DIWHUGLVFRYHU\LVFORVHGDQGZHFDQDVVHVV$UH
WKHVHWKLQJVUHOHYDQW"$UHWKH\DGPLVVLEOH"
8QGHUZKDWFLUFXPVWDQFHVZLOOWKH\EH"$WWKLV
SRLQWZHVLPSO\GRQ
WNQRZ%XWWKDW
VQRWWKH
TXHVWLRQWKDWLVEHIRUH\RX7KHTXHVWLRQLV
ZKHWKHUWKH\VKRXOGEHSURGXFHGWRDWWRUQH\VRQDQ
DWWRUQH\
VH\HVRQO\EDVLV
:HGRKDYHDWKHRU\RIUHOHYDQFHRIKRZWKH\
PD\XOWLPDWHO\EHUHOHYDQWWRWKLVFDVH%XWLW
V
ZRUNSURGXFW,I\RXZRXOGOLNHIRUXVWRPDNHDQ
H[SDUWHVKRZLQJRQWKDWZHZRXOGEHKDSS\WRGR
VR%XWLILWZRXOGKHOSIXOIRUWKLVDUJXPHQW
EXWDWWKLVSRLQWWKDW
VQRWUHDOO\WKHTXHVWLRQ
EHIRUH<RXU+RQRU
-8'*(&$6(8KKXK,QGLFDWHV
DIILUPDWLYHO\
05%(55<ZKHWKHUWKH\
UHXOWLPDWHO\
UHOHYDQWRUQRW
-8'*(&$6($Q\WKLQJHOVH"
05+$5'(5-XVWEULHIO\MXVWWRUHVSRQGWR
&RQILGHQWLDO
ZKDW0U%HUU\VDLG
,ZLOOWDNHWKHSKRQHUHFRUGVILUVWMXVWWR
UHVSRQGWRKLP+HVDLGWKLVKDVDOUHDG\EHHQ
DUJXHGDQGDOUHDG\EHHQGHFLGHGWKDWLW
VOLNHD
JDPHRIFRQQHFWWKHGRWVWKDWKLVNLGVSOD\DQG
WKH\IHHOWKDWZH
UHPDNLQJWKHPFRQQHFWWKHGRWV
DQGWKDW
VQRWWKHSURSHUZD\RIGRLQJGLVFRYHU\
/HWPHWDNHWKDWILUVW,I\RXKDYHDSKRQH
QXPEHU<RXU+RQRUWKDW
VZKDW
VWKHDUHDFRGH
KHUH"
05785.(/
05+$5'(5$QGWKHQOHW
VMXVWVD\
LW
V,I\RXKDYHDSKRQHQXPEHUOLNH
WKLVWKDWZRXOGEHD&OHDUZDWHUSKRQHQXPEHU
$QGLI\RXWDNHRXWWKHVHWKUHHGLJLWV\RXVWLOO
KDYHDQHDUO\FRPSOHWHSKRQHQXPEHU$QGLI\RX
GHWHUPLQHWKDWWKHUHLVDZLWQHVVZKRKDVDSKRQH
QXPEHUWKDWPDWFKHVWRWKLVWKHQ\RXFDQ,
PHDQOLWLJDWLRQLVFRQQHFWLQJWKHGRWV7KDW
V
ZKDWOLWLJDWLRQLV
,I\RXILQGDZLWQHVVZKRKDVOHW
VVD\,
SURGXFHWKHHQWLUHWKLQJDOORIWKHSKRQH
QXPEHUV$QGOHW
VVD\WKH\KDYHDZLWQHVVDQG
WKH\KDYHWRILQGRXWWKHQXPEHURIWKHZLWQHVV
7KH\ZRXOGKDYHWRGRWKDWLQRUGHUIRUWKLVWREH
&RQILGHQWLDO
RIDQ\UHOHYDQFHRUXVHWRWKHP6RWKH\ILQGRXW
WKDW-RH6PLWKLVDZLWQHVVDQGWKH\ILQGRXW
ZKDWKLVSKRQHQXPEHULV$QGWKH\ORRNDWWKLV
DQGWKH\VD\$KKD-RH6PLWKFDOOHG0U%ROOHD
RU0U%ROOHDFDOOHG-RH6PLWKRQ;GDWH*UHDW
ZH
YHJRWLW,I\RXWDNHWKLVRXWWKH\VWLOO
KDYHKLVSKRQHQXPEHUDQGWKH\FDQPDWFKLWXS
7KH\FDQVWLOOPDWFKXSWKHIDFWWKDWWKLV
FRXOGEH-RH6PLWK$QGWKHQWKH\FRXOGFDOOPH
DQGVD\0U+DUGHUZHWKLQN\RX
YHJRWDSKRQH
QXPEHURIDZLWQHVV$QG,ZLOOMXVWJLYHLWWR
WKHP+HUH\RXJR,I\RXWKLQNLW
V\RXU
ZLWQHVVJRDKHDG2U,PD\VD\:HOOZKRGR\RX
WKLQNLWLVDQGZKDW
VWKDWSKRQHQXPEHU"7KDW
V
MXVWWRFODULI\)LQHKHUH\RXJR
,W
VQRGLIIHUHQWZKHWKHUZHGRWKLVRUZH
GRQ
WGRWKLV,W
VQRGLIIHUHQWZLWKUHVSHFWWR
DQ\ZLWQHVVLQWKHFDVH7KH\KDYHWRJHWWKH
SKRQHQXPEHUIURPWKHZLWQHVVILUVW2WKHUZLVH
ZKDW\RXKDYHLVDORJWKDWKDVSKRQHQXPEHUDIWHU
SKRQHQXPEHUDIWHUSKRQHQXPEHU$QGWRGHWHUPLQH
WKDWWKHVHSHRSOHDUHZLWQHVVHV\RXJHWRQWKH
SKRQHDQG\RXVWDUWFDOOLQJWKHPDOO
<RXFDOOHYHU\ERG\WKDWKHHYHUUHFHLYHGD
SKRQHFDOOIURPRUPDGHDSKRQHFDOOWRGXULQJWKH
&RQILGHQWLDO
FRXUVHRIWKH\HDUDQGVD\+LZKRLVWKLV"
2KWKLVLV-RH6PLWK
2KGR\RXNQRZ7HUU\%ROOHD"+RZGR\RX
NQRZKLP"'R\RXNQRZDQ\WKLQJDERXWWKHVH[
WDSH"'R\RXNQRZDQ\WKLQJDERXW+HDWKHU&OHP"
,PHDQWKDW
VWKHRQO\ZD\RWKHUZLVHWKDW
\RXZRXOGEHDEOHWRGHWHUPLQHDZLWQHVVE\KDYLQJ
DSKRQHORJ
:KDWWKH\KDYHVDLGWKHUHDVRQZK\WKH\
ZDQWHGWKHSKRQHORJVLVVRWKH\FDQGHWHUPLQHLI
KHPDGHSKRQHFDOOVWR%XEEDRU+HDWKHURURWKHU
UHOHYDQWZLWQHVVHVGXULQJWKHSHULRGRI:H
GLGQ
WUHGDFW+HDWKHU&OHP%XEED&OHPDQ\RWKHU
ZLWQHVVHVLQWKHFDVHDVWRKLVSKRQHUHFRUGV
%XWDVWRWKHQRQZLWQHVVHVQRQSDUWLHVZHGLG
WKDWWRLW6RWKDWLIWKH\OHWXVNQRZLIWKLV
PDWFKHVXSZLWK-RH6PLWKZKRZDVDZLWQHVVWKHUH
\RXJR\RX
YHJRWLW1RZ\RXFDQGHWHUPLQHWKDW
KHPDGHWKDWSKRQHFDOORULIWKHSKRQHFDOOZDV
PDGHWRKLP
6RIRUSXUSRVHVRISURYLGLQJWKHPZLWKZKDW
WKH\QHHG,IHHOWKDW,KDYHGRQHWKDW)RU
SXUSRVHVRISURWHFWLQJWKLUGSDUWLHV,IHHOOLNH
,KDYHGRQHWKDW)RUSXUSRVHVRISUHYHQWLQJVRPH
NLQGRIDQDYDODQFKHRISKRQHFDOOVWRHYHU\ERG\
&RQILGHQWLDO
WKDWKHNQRZVLQFOXGLQJKLVEXVLQHVVFRQWDFWV
KLVSHUVRQDOFRQWDFWVWRWKHH[WHQWWKDWWKH\
ZHUHHYHULQWHUHVWHGLQGRLQJWKDW,KDYH
SUHYHQWHGWKDWIURPKDSSHQLQJ7KH\VD\WKDWWKH\
DUHQRWLQWHUHVWHGLQWKDWDQGWKDW
VILQH%XW
VWLOOZKDWZHKDYHGRQHLV,EHOLHYHDSURSHU
EDODQFHEHWZHHQQRQSDUW\SULYDF\DQGWKHLUULJKW
WRILQGRXWZKDWSKRQHFDOOVKHPDGHWRUHOHYDQFH
ZLWQHVVHV
$QGDJDLQ<RXU+RQRU,KDYHVDLGLWWKUHH
RUIRXUWLPHV,I\RXGLVDJUHHZLWKPHZH
OO
JLYHWKHPWKHSKRQHUHFRUGVEXW,WKLQNWKDW
ZH
YHVWUXFNWKHSURSHUEDODQFH
0U%HUU\PDGHDFRPPHQWDERXW'DXOHULR
V
HPDLO7KHWUXHIDFWVDUHWKDWWKH\SURYLGHG
VRPHLQIRUPDWLRQWRXVLQDQLQWHUURJDWRU\
UHVSRQVHDQGWKDWLQWHUURJDWRU\UHVSRQVHVDLG
DQG,ZLOOTXRWHLWEHFDXVH,KDYHWKHLU
LQWHUURJDWRU\UHVSRQVHULJKWKHUH$OWKRXJKWKH
SDFNDJHZKLFKKDGWKH'9'RIWKHVH[WDSH
FRQWDLQHGQRUHWXUQDGGUHVV*DZNHUGRHVQRW
EHOLHYHWKHYLGHRZDVVHQWWR*DZNHUE\
0U%XUWRQ
$QGWKHQ*DZNHUDOVRGRHVQRWEHOLHYHWKDW
WKHYLGHRZDVVHQWE\0U&DOWDUHIHUULQJWR0LNH
&RQILGHQWLDO
&RZKHDG&DOWD
(LJKWPRQWKVDIWHUKHDVNHGIRUGRFXPHQWV
HLJKWPRQWKVDQGLWZDVDIWHUZHWRRNWKH
GHSRVLWLRQVRIWKHLUZLWQHVVHVWKH\SURYLGHGXV
ZLWKHPDLOVIRUWKHILUVWWLPHEHFDXVHZHGLGQ
W
KDYHWKHPDW$-'DXOHULR
VGHSRVLWLRQ$-
'DXOHULRWR7RQ\%XUWRQDERXWWKUHHGD\VEHIRUH
WKH\SRVWHGWKHVH[WDSH6RZH
UHJRLQJWRVOLFH
WKLVXSLQWRDKLJKOLJKWUHHOWKLVLV$-
'DXOHULRWKHLUHGLWRULQFKLHIWKHQGRVRPH
FRPPHQWDU\RQWKHVWLOOV,
OOMXVWVD\WKLVFDPH
DFURVVRXUGHVNULJKWTXHVWLRQPDUN"
$QGWKHUHVSRQVHLV+RZHYHU\RXZDQWWRVD\
\RXJRWLW$OO,NQRZLVWKDWLWZDVVHQWWR\RX
DQRQ\PRXVO\
:HJRWWKDWHLJKWPRQWKVGRZQWKHURDG6R,
MXVWZDQWWRFRUUHFWWKDWEHFDXVHZHGLGQ
WKDYH
WKDWDW$-'DXOHULR
VGHSRVLWLRQ:HZRXOGKDYH
ORYHGWRKDYHDVNHGKLPDERXWWKDW
$QGWKLVZKROHWKLQJDERXW\RXVWRQHZDOOXV
RU\RXGRQ
WSURYLGHWKLQJV,PHDQORRNLILW
V
DQKRQHVWWKLQJDQG,NQRZZH
UHQRWDUJXLQJ
WKHVDQFWLRQVPRWLRQWKLQJEXW,
PQRWDVNLQJIRU
VDQFWLRQV,GLGQ
WEULQJDPRWLRQIRUVDQFWLRQV
EHFDXVHZHHYHQWXDOO\JRWZKDWZHDVNHGIRU%XW
&RQILGHQWLDO
VRPHWLPHVFRXQVHOHQGVXSZLWKWKLQJVDQGWKHQ
WKH\HQGXSSURGXFLQJLWDQGWKH\UHDOL]H2RSV
,VKRXOGKDYHSURGXFHGWKDWDORQJWLPHDJR
$OVRZKHQLWFDPHWRDQLQVXUDQFHSROLF\
WKH\KDGDVHFRQGLQVXUDQFHSROLF\,WWRRNWKHP
VL[PRQWKVWRSURGXFHWKDWDIWHUZHKDGDVNHGIRU
LW$QGWKH\HYHQWROGPHWKHH[LVWHQFHRIWKH
VHFRQGLQVXUDQFHSROLF\DQGLWVWLOOWRRNPRQWKV
DQGPRQWKVIRUPHWRILQDOO\JHWLW
6RORRNVRPHWLPHVWKLQJVVKRZXSODWH$QG
,UHDOL]HWKDWLVDOLWWOHELWIDUDILHOGEXW,
ZDQWHGWRDGGUHVVWKLV'DXOHULRLVVXHEHFDXVH,
WKLQNLW
VYHU\LPSRUWDQW
7KHLVVXHRI,JXHVVZH
UHQRZLQWRWKH
,JXHVVZH
UHQRZLQWRWKHLVVXHRIWKHUDFLDO
DQGKHZDVWDONLQJDERXWWKH'DXOHULRHPDLOV
$QG,WKLQNLWZDVEDVLFDOO\WKHFRQQHFWLRQRI
7RQ\%XUWRQDJHQWRIWKH%XFKZDOGDJHQF\WRDOO
WKLV+HVDLGWKHUHWZRVHSDUDWHLQGLYLGXDOVZKR
WKH\EHOLHYHFUHDWHGWKHVXPPDULHV:HORRNHGDW
WKHVHVXPPDULHVDQGLWORRNHGOLNHLWZDVWKH
VDPHSHUVRQZKRFUHDWHGWKHPDQGWKH\PD\KDYH
WLQNHUHGZLWKWKHP
%XWLQDQ\HYHQWZKHWKHULW
VRQHSHUVRQRU
WZRSHRSOHLW
VLUUHOHYDQWWRWKHIDFWWKDW
&RQILGHQWLDO
UDFLDOODQJXDJHZDVQHYHULQWKHLUSRVVHVVLRQRI
WKHLUYLGHR7KH\QHYHUSXEOLVKHGLW7KH\QHYHU
SXEOLVKHGDQDUUDWLYHDERXWLW,W
VQRWSDUWRI
WKHLUVWRU\,W
VQRWSDUWRIWKHLUFODLPV,W
V
QRWSDUWRIWKHLUGHIHQVHVWRXV7KH\ZDQWWR
ILQGRXWDOOWKLQJVUHODWHGWRWKHVH[WDSH$UH
WKHUHPRUHWKDQRQHWDSH(YHQWKRXJKLW
VIDU
DILHOGWKH\
UHFRQGXFWLQJWKDWGLVFRYHU\DQG
WKDW
VILQH7KH\KDYHUHFHLYHGWKHVHVXPPDULHV
KHUH
:KHUHGLG,SXWWKRVHIURPWKHH[WRUWLRQLVW"
7KH\KDYHLW7KH\KDYHDOOWKHLQIRUPDWLRQ
WKDWWKH\QHHGLQRUGHUWRFRQGXFWWKHLUGLVFRYHU\
LQWRWKHH[WRUWLRQLVVXH
7KHIDFWWKDWZHWRRNRXWILYHZRUGV,
P
KDSS\DJDLQ<RXU+RQRULI\RXIHHOLW
V
QHFHVVDU\,
PKDSS\WRVKRZ\RXDQXQUHGDFWHG
YHUVLRQZLWKKLJKOLJKWLQJ
-8'*(&$6(7KDW
VRND\
05+$5'(5WKHZRUGVWKDWZH
UHWDONLQJ
DERXW7KH\UHFHLYHGDOORIWKLV7KHUHLVMXVW
DZRUGKHUHWKHUHLVDZRUGKHUHWKHUHLVDZRUG
KHUHKHUHDQGKHUHDQGKHUH7KDWZDVWDNHQ
RXWEHFDXVHWKHVHDUHWKHWHUPVWKHWHUPLQRORJ\
WKDW
VH[SORVLYHWKDW
VLUUHOHYDQWDQGLW
V
&RQILGHQWLDO
H[SORVLYH7KHIDFWWKDWWKHUHFRXOGEHDQ
DWWRUQH\
VH\HVRQO\SURYLVLRQZHKDYHVWDPSHGLW
DWWRUQH\
VH\HVRQO\%XWVWLOOLWVKRXOGLW
VKRXOGQHYHUH[LVWRQYLGHREHFDXVHLWZDVGRQHLQ
DSULYDWHSODFH,WVKRXOGQHYHUH[LVWRQSDSHU
EHFDXVHLWZDVGRQHLQDSULYDWHSODFH,WVKRXOG
QRWEHSDUWRIWKLVOLWLJDWLRQWKHUDFLDOVWXII
EHFDXVHLW
VQRWLQWKHLUYLGHR
,W
VVRIDUDILHOGDQGLW
VVRKLJKO\
SUHMXGLFLDODQGLWLVQHYHUJRLQJWRVKRZXSLQ
IURQWRIDMXU\
VH\HV,WZRXOGEHVR
WUHPHQGRXVO\SUHMXGLFLDODQGWKHUHLVQR
SUREDWLYHYDOXH
,W
VQRWWKHUDFLDOWHUPVDUHQRW
UHDVRQDEO\FDOFXODWHGWROHDGWRDGPLVVLEOH
HYLGHQFH7KH\KDYHDOOWKH\QHHG<RXU+RQRUWR
H[SORUHWKHH[WRUWLRQLVWLVVXH7KH\KDYH
SUREDEO\SHUFHQWRIWKHZRUGVIURPWKH
H[WRUWLRQLVW7KH\GRQ
WQHHGWKHUDFLDOZRUGVRQ
WRSRILW
7DONLQJDERXW%XEED&OHPWHVWLILHGWKDWWKHUH
LVRQHWDSHWKDW
VWKHRQO\WHVWLPRQ\WKDW
V
FRPSHWHQWWHVWLPRQ\WKDWZHKDYHDVWRWKHQXPEHU
RIWDSHV%XEED&OHP,GRQ
WUHPHPEHUH[DFWO\
ZKDWKHVD\VLIKHVD\V,GRQ
WUHFDOOWKHUH
&RQILGHQWLDO
EHLQJDVHFRQGWDSHRU,QHYHUFUHDWHGDVHFRQG
WDSH%XWZKDWHYHULWPD\EHDGGLQJWKHUDFLDO
WHUPVWRWKLVLVQRWJRLQJWRKHOSWKHPJHWWRWKH
ERWWRPOLQHRIKRZPDQ\WDSHVWKHUHDUH(LWKHU
WKHUHDUHWZRRUWKUHHRUWKHUHDUHQ
WWZRRU
WKUHHRUMXVWRQH
%XWDGGLQJWKHUDFLDOWHUPVLVQRWJRLQJWR
JHWWKHPDQ\DQVZHUVRIWKHWKLQJVWKDWWKH\FODLP
WREHUHOHYDQWDQGWKHWKLQJVWKDWWKH\FODLPWR
EHOHJLWLPDWHGLVFRYHU\$QGEHFDXVHRIWKH
H[SORVLYHQHVVRIWKLVLVVXHWKHSRWHQWLDOIRU
GDPDJHWKHW\SHRIGHIHQGDQWWKDWZH
UHGHDOLQJ
ZLWKWKDWSXEOLVKHVWKHVHW\SHVRIWKLQJVLQ
DGGLWLRQWRWKHIDFWWKDWLW
VLUUHOHYDQWWKDW
LW
VQRWUHDVRQDEO\FDOFXODWHGWKHUHLVMXVWDQ
DGGHGHOHPHQWRILW
VMXVWQRWVRPHWKLQJWKDW
LVOHJLWLPDWHGLVFRYHU\$QGZKHQ<RXU+RQRU
VXVWDLQHGWKHREMHFWLRQWRWKHTXHVWLRQGLG
0U%ROOHDHYHUXVHWKH1ZRUGWKDWZDVWKH
SURSHUUXOLQJDQGZHZRXOGUHTXHVWWKDWWKDWEH
IROORZHGVWLOO
7KDQN\RX
-8'*(&$6(2ND\
05%(5/,10LNHZDVQ
WLQWKHFDVHDWWKH
WLPHEXW,
PKDSS\WRDGGUHVV0U+DUGHU
V
&RQILGHQWLDO
DVVHUWLRQWKDWZH
YHVRPHKRZPLVUHSUHVHQWHGWKH
QDWXUHRI7RQ\%XUWRQ:HLGHQWLILHGKLPLQRXU
LQLWLDOLQWHUURJDWRU\UHVSRQVHV
-8'*(&$6(5LJKW
05%(5/,1$QGZHSURGXFHGDEXQFKRI
HPDLOVIURP*DZNHU
VHPDLOLQUHVSRQVH
WRGLVFRYHU\UHTXHVWVWR*DZNHU2QHRIWKH
WKLQJVWKDWWKRVHGLVFRYHU\UHTXHVWVLGHQWLILHG
ZDVWKDW$-'DXOHULRZKRLVDQRWKHUGHIHQGDQW
LQWKHFDVHQRORQJHUZRUNVIRU*DZNHU$QGWKH
HPDLOVWKDWKH
VUHDGLQJIURPDUHIURP
0U'DXOHULR
VSHUVRQDOHPDLODFFRXQWZKLFK
*DZNHUGRHVQ
WFRQWURO$QGZKHQKHVHUYHG
GLVFRYHU\UHTXHVWVRQ0U'DXOHULRWKRVHZHUH
SURGXFHG$QGKHGLGQ
WGRWKDWXQWLODIWHU
0U'DXOHULR
VGHSRVLWLRQDQGWKDWZDVKLV
FKRLFH%XWZHDFWXDOO\GLGH[DFWO\ZKDWZHZHUH
VXSSRVHGWRGR$QGLQIDFW*DZNHUZRXOGQRW
KDYHEHHQDEOHWRKDYHSRVVHVVLRQFXVWRG\RU
FRQWURORIDIRUPHUHPSOR\HH
VHPDLOWR
JRUXPPDJLQJWKURXJKWKHP
-8'*(&$6(5LJKW
05%(5/,1$QGWKHLQIRUPDWLRQEXWZH
ZHUHQ
WKLGLQJWKDWWKHUHZDV7RQ\%XUWRQRUWKDW
WKLVZDVZKHUHZHJRWLW$QGLQIDFWWKH
&RQILGHQWLDO
HPDLOVWKHHPDLOVVSHDNIRUWKHPVHOYHV%XW
\RXNQRZ,WKLQNLI\RXDVNERWK0U%XUWRQDQG
0U'DXOHULRWKH\EHOLHYHWKDW0U%XUWRQGLGQ
W
SURYLGHWKLVWDSHRU0U&DOWDGLGQ
WSURYLGH
WKLVWDSH$QG\RXNQRZDSURSRVRIZKDW,ZDV
WDONLQJDERXWHDUOLHUDQGKRZRQHDQVZHUV
GLVFRYHU\ZHFRXOGKDYHVDLG:HGRQ
WNQRZWKDW
IRUVXUHVRZH
UHJRLQJWRVD\QRWKLQJ,QVWHDG
ZHDQVZHUHGWKHTXHVWLRQDVEHVWZHFRXOGZKLFK
LV7KLVLVWKHLQIRUPDWLRQZHKDYH:HGRQ
W
EHOLHYHLW
VZKHUHWKHWDSHFDPHIURPEXW\RX
NQRZZHZDQWWRJLYH\RXWKDWLQIRUPDWLRQ
-8'*(&$6(2ND\
05%(5/,1,MXVWZDQWHGWREHFOHDUDERXW
WKDWRQWKHUHFRUG,GRQ
WWKLQNLWEHDUVPXFK
RQWKLVPRWLRQEXWVLQFHWKHUHKDVEHHQDVVHUWLRQ
WKDWZHZHUHQRWFRUUHFWLQGLVFRYHU\,ZDQWWR
EHFOHDURQWKHIDFWWKDWZHZHUH,I0U%HUU\
ZDQWVWRWDONWRWKHPHULWV,
OOEHTXLHW
05%(55<7KHRQO\WKLQJ,ZRXOGVD\RQWKH
PHULWVZLWKUHVSHFWWRWKHUDFLDOODQJXDJHLVWKH
VDPHWKLQJWKDW,HQGHGXSZLWKLVWKDWZHGRQ
W
WKLQNWKDWWKHUHLVXOWLPDWHDGPLVVLELOLW\RIWKLV
HYLGHQFHZKHWKHULW
VSUHMXGLFLDOKHDUVD\
ZKDWQRWLVWKHTXHVWLRQ%XWWRWKHH[WHQWWKDW
&RQILGHQWLDO
<RXU+RQRULVLQWHUHVWHGLQFRQVLGHULQJWKDWZH
ZRXOGEHKDSS\WRPDNHDQH[SDUWHVKRZLQJDWWKLV
SRLQWRIZK\ZHWKLQNWKDWLWPLJKWEH
:LWKUHVSHFWWRWKHSKRQHUHFRUGVDQG
0U+DUGHU
VSUHVHQWDWLRQWKRVHWKUHHPLVVLQJ
GLJLWVFRXOGHQGXSEHLQJGLIIHUHQW
SKRQHQXPEHUV$QGWKHUHLVQRSRVVLEOHZD\WKDW
ZHFRXOGILJXUHRXWZKRPLJKWKDYHWDONHGWR
0U%ROOHD
:KDWVKRXOGKDYHKDSSHQHGDQGZKDWVKRXOG
KDSSHQLVWKDWWKH\SURGXFHWKHUHFRUGVDQGWKDW
ZHFDQJRGRZQJRZLWK0U%ROOHDDQGDVNKLP
'RHVWKLVUHIUHVK\RXUUHFROOHFWLRQZKHWKHU\RX
WDONHGWRWKLVSHUVRQRU\RXWDONHGWRWKLVSHUVRQ
RU\RXWDONHGWRWKDWSHUVRQ":HFDQ
WHYHQGR
WKDWDWWKLVSRLQWEHFDXVH,WUXVWWKDWLI\RX
VKRZ0U%ROOHDKDOIRIDSKRQHQXPEHUKH
VQRW
JRLQJWRUHPHPEHUZKRVHSKRQHQXPEHUWKDWLV
HLWKHU
-8'*(&$6(2ND\$OOULJKW,
PJRLQJWR
ZRUNEDFNZDUGV
,
PJRLQJWRDVN\RXWRSURGXFHDOOWKH
UHFRUGVDOO
05+$5'(53KRQHORJV"
-8'*(&$6(DOOWKHSKRQHORJV
&RQILGHQWLDO
XQUHGDFWHG$QG,WUXVWFRXQVHOQRWWRDEXVHWKH
VLWXDWLRQEHFDXVHREYLRXVO\QRQSDUWLHV
QRQZLWQHVVHVWKDWKDYHQRDVVRFLDWLRQZLWKWKLV
FDVHVKRXOGQ
WUHDOO\EHERWKHUHGE\DQRQ\PRXV
SKRQHFDOOVMXVWRQDILVKLQJH[SHGLWLRQ6RZLWK
WKDWFODULILFDWLRQ,
PJRLQJWRRUGHUWKDWWKH
SKRQHUHFRUGVEHSURGXFHG
2ND\%DFNWRWKHRWKHUDUJXPHQWRQWKHILYH
UHGDFWHGZRUGV&RXQVHOPDNHVDYHU\FRPSHOOLQJ
DUJXPHQWWRPHRQZK\WKHVHZRUGVVKRXOGEH
UHGDFWHGDQGZK\WKDWLVVXHVKRXOGQRWFRPH
DQ\ZKHUHQHDUWKLVFDVHDWWKLVVWDJHRIWKH
SURFHHGLQJV<RXKDYHDGRFXPHQWWKDW\RXGRQ
W
NQRZZKRGUDIWHGLW<RXGRQ
WNQRZZKHUHLWFDPH
IURP<RXGRQ
WNQRZDQ\WKLQJDERXWLWRWKHU
WKDQLWKDVLQIODPPDWRU\ODQJXDJHLQLWWKDWKDV
QREXVLQHVVLQWKLVFDVHZKDWVRHYHUWKDW,FDQVHH
ULJKWQRZ6R\RXUPRWLRQLVJUDQWHG
<RXDVNHGPHWRFRQVLGHUUHTXLULQJWKH
GHIHQGDQWWRVXUUHQGHUWKHXQUHGDFWHGFRS\WKDW
WKH\KDGREWDLQHGLQWKHLUSRVVHVVLRQ,WZRXOG
EHP\UHFRPPHQGDWLRQWR-XGJH&DPSEHOOWKDWVKHGR
VR,
PQRWJRLQJWR,GRQ
WWKLQN,KDYHWKH
DXWKRULW\WRRUGHUWKDWDWWKLVSRLQWLQWLPH
%XWLWZRXOGFHUWDLQO\EHP\UHFRPPHQGDWLRQ
&RQILGHQWLDO
WKDWJLYHQWKHQDWXUHRIWKHFRQWHQWDVLWLV
DQG,
PQRWVXJJHVWLQJWKDWDQ\ERG\\RXRU\RXU
ILUP\RXNQRZZRXOGYLRODWHWKH
DWWRUQH\
VH\HVRQO\SURYLVLRQ%XWDVZHDOO
NQRZVLWWLQJDURXQGWKLVWDEOHVWXIIKDSSHQV
$QG,ZRXOGFHUWDLQO\KDWHWRVHHDQ\DFFLGHQWDO
SXEOLFDWLRQRIWKLVHLWKHUIURP\RXUVHOIRUDQ\
RWKHUSXEOLFLVWZKHUHWKH\JRWFRXOGJHWWKHLU
KDQGVRQLW6RWKHPRWLRQLVJUDQWHG
05%(55<<RXU+RQRUFDQWKDWEHZLWKRXW
SUHMXGLFH"$V,VDLGZHKDYHVRPHWKRXJKWVDERXW
KRZWKLVPD\XOWLPDWHO\OHDGWRDGPLVVLEOH
HYLGHQFHGRZQWKHURDG
-8'*(&$6($EVROXWHO\1RQR<RXFDQ
DOZD\VJREDFNDQGUHYLVLWVRPHWKLQJOLNHWKLV
/LNH,VDLGKHPDGHDYHU\FRPSHOOLQJDUJXPHQW
EXW,
PFHUWDLQO\ZLOOLQJWROLVWHQWRDWD
VXEVHTXHQWWLPHXQGHUWKHSURSHUFLUFXPVWDQFHV
WKDW\RX
YHGHVFULEHG\RXNQRZZK\LWPLJKWDW
VRPHGD\RUVRPHWLPHEHFRPHUHOHYDQW
05%(5/,1,QWKDWUHJDUGPLJKWZHDVN
WKDWHLWKHUWKH\EHRUGHUHGWRSUHVHUYHWKH
XQUHGDFWHGYHUVLRQVRUWKH\EHSURYLGHGWR\RXWR
KROGRQWR"
05+$5'(5:HZLOODEVROXWHO\SUHVHUYH
&RQILGHQWLDO
WKHP
-8'*(&$6(3UHVHUYHWKHP\HV
06',(75,&.&DQZHSURYLGHWKHPWR\RXWR
KROGRQWR"
-8'*(&$6(0H"
06',(75,&.<HV
-8'*(&$6(,GRQ
WZDQWWKHP,W
VWRRKRW
DSRWDWR
05785.(/$UHWKH\%DWHV"
05+$5'(5<HV
05%(5/,17KH\ZHUH%DWHVE\WKH
'RQ%XFKZDOGSHRSOH
05785.(/%DWHVWKHPDQGSUHVHUYHWKHP
05+$5'(5<HDK,GRQ
WNQRZDERXWWKH
%XFKZDOG
05%(55<7KH%XFKZDOGGRFXPHQWVDUHQ
W
%DWHV
057+20$6-XVWVRWKHUHLVQRFRQIXVLRQRI
ZKDW
VEHLQJSUHVHUYHGZKDWHYHULWLVOHW
VPDNH
VXUHLW
V%DWHV
05+$5'(5$VIDUDVWKH%DWHVZHUHFHLYHG
GRFXPHQWVIURPWKH%XFKZDOG$JHQF\:HSURGXFHG
WKHPLQDUHGDFWHGIRUP,EHOLHYHWKDW\RXJX\V
REWDLQHGWKHPLQDQXQUHGDFWHGIRUP6RZKDWHYHU
\RXKDYH,GRQ
WNQRZZKDWLWORRNVOLNHZKHWKHU
&RQILGHQWLDO
LWKDVD%DWHVRUQRWD%DWHVEXWZHQHHGWKRVH
WREHEURXJKWEDFNWRXV
$QG,DVVXPHWKH\
UHJRLQJWREHLGHQWLFDOWR
WKHRQHVWKDWZH
YHDOUHDG\UHGDFWHGDQGSURYLGHG
WR\RX$QGLIWKH\DUHQRW,ZLOOUHGDFWWKRVH
DQGSURYLGH\RXWKHUHGDFWHGYHUVLRQEXW,DVVXPH
LW
VWKHVDPHWKLQJ
05%(55<<RXU+RQRUZLWKDOOGXHUHVSHFW
,PHDQWKHVHDUHWKLUGSDUW\GRFXPHQWV7KHVH
DUHQ
WWKHLUGRHV
-8'*(&$6(,NQRZ
05%(55<7KH\ZHUHVHQWWRXVE\DWKLUG
SDUW\
-8'*(&$6(,XQGHUVWDQGEXW,
PMXVW
VD\LQJ
05%(5/,1:H
UH
-8'*(&$6(<RX
OOKDYHDFKDQFHWRGRWKLV
DJDLQLQIURQWRI-XGJH&DPSEHOO,
PFHUWDLQ
05%(5/,1/HWPHUHSUHVHQWWRWKH&RXUW
WKDWLQWKHPHDQWLPHEHFDXVHZHDUHJRLQJWRKDYH
DQRSSRUWXQLW\WRGRWKLVLQIURQWRI
-XGJH&DPSEHOOWKDW,ZRXOGWRDGGUHVVWKH
FRQFHUQWKDW\RX
UHUDLVLQJDERXWVWXIIKDSSHQLQJ
ZH
OOWDNHWKHGRFXPHQWVDQGZH
OOSXWWKHPLQD
VHDOHGHQYHORSHDQGZH
OOSXWWKHPLQRXUODZ
&RQILGHQWLDO
ILUP
VVDIHVRWKDWLIWKH\VKRXOGFRPHWROLJKW
LWZRXOGQ
WEHIURPXV
-8'*(&$6(2ND\3HQGLQJ-XGJH&DPSEHOO
V
UXOLQJ
05%(5/,12IFRXUVH,I-XGJH&DPSEHOO
WHOOVXVWRGRVRPHWKLQJHOVHZHZLOOGRWKDW
-8'*(&$6(%XWLQWKHPHDQWLPH,
DSSUHFLDWH\RXU
05%2//($:KHUHDUHWKHGRFXPHQWVQRZLI
WKH\
UHQRWLQDVDIHVHDOHG"
05%(5/,17KH\
UHLQDORFNHGILOH
FDELQHWEXWVRWKDWWKH\VKRXOGKDYHH[WUDDGGHG
SURWHFWLRQ
05+$5'(5:HOO,DVVXPH\RXKDYH
HOHFWURQLFFRSLHVWKDWKDYHEHHQVFDQQHGWKDWDUH
VLWWLQJRQ\RXUFRPSXWHUVR\RX
OOKDYHWRGHOHWH
DOOWKRVHILOHV
05%(55<5LJKW$QGLQRXUV\VWHP
WKH\
UHPDUNHGIRUXQGHUDSURWHFWLYHRUGHU
05+$5'(5,
GIHHOVDIHU<RXU+RQRULI
WKH\DOOFDPHEDFNWRXV$QGLIWKH\ZHUH
GHWHUPLQHGWREHUHOHYDQWLQVRPHIDVKLRQDQGZH
KDGWRSURGXFHWKHPZHZLOOPDLQWDLQWKHPLQ
H[DFWO\WKHIRUPWKDWWKH\DUHLQ
-8'*(&$6(8QWLO-XGJH&DPSEHOOKDVDQ
&RQILGHQWLDO
RSSRUWXQLW\WRUXOHRQWKLV,ZLOODFFHSW6HWK
V
VXJJHVWLRQWKDWWKH\VHDOWKHPDQGSXWWKHPLQ
WKHLUODZILUPVDIH
05+$5'(52ND\
-8'*(&$6(6RPHKRZWKH\
YHJRWWRDOVRGR
WKHVDPHWKLQJZLWKWKHHOHFWURQLFYHUVLRQWKDW
V
SUREDEO\DYDLODEOHWRDQ\ODZ\HULQ\RXUILUPRU
OHJDODVVLVWDQW
05+$5'(5,PHDQ\RXFRXOGSXWLWRQWRD
WKXPEGULYHSXWWKDWLQWKHVDIHDQGGHOHWHWKHP
RII\RXUV\VWHP
-8'*(&$6(&RUUHFW
05%(5/,1,EHOLHYHZHFDQILJXUHLWRXW
,GRQ
WH[DFWO\NQRZWKHWHFKQRORJ\EXW,
PVXUH
ZHFDQILJXUHRXWDZD\
05785.(/,QWKHUHFRPPHQGDWLRQVWRSXWLQ
WKHLQWHULPZHQHHGWRUHIOHFWWKDWVRLW
VFOHDU
WKDW
-8'*(&$6(,W
VLQWKHLQWHULPXQWLO
05785.(/XQWLODQ\DSSHOODWHUHPHGLHV
KDYH
-8'*(&$6(5LJKW
05+$5'(5$QGWKHQDQ\FRSLHVWKDWPLJKW
EHDW*DZNHUKDYHWREHHLWKHUVHQWWR6HWKRU
GHVWUR\HG
&RQILGHQWLDO
-8'*(&$6(,GRQ
WNQRZ
05+$5'(5:HOO0V'LHWULFNLVWKH
JHQHUDOFRXQVHODW*DZNHU,GRQ
WNQRZLIVKH
KDVDFRS\RUQRW
-8'*(&$6('RHVVKHKDYHDFRS\"
05%(5/,1,GRQ
WNQRZ%XWZHFDQZRUN
WKDWRXWDQGJHWWKHPEDFNDQG
06',(75,&.,KDYHDFRS\RIZKDWHYHULV
DWWDFKHGWRWKHEULHILQJ
05%(5/,1,WZDVDWWDFKHGDFWXDOO\
06',(75,&.,WZDVDWWDFKHGWRWKH
EULHILQJWKDWZDVLQ\RXUFRPSLODWLRQWKDW\RX
KDYHULJKWQRZ,GRQ
WKDYHDVHSDUDWHFRS\,
KDYHWKHVDPHWKLQJWKDWZDVILOHG
-8'*(&$6(2ND\
05%(5/,1<HDK,PHDQWKDW
VRQHRIWKH
FRQFHUQVDERXW\RXNQRZWDNLQJEDFNIURPODZ\HUV
WKLQJVWKDWWKH\
YHDOUHDG\EHHQSXWLQFRXUW
ILOLQJV
-8'*(&$6(6XUH
05%(5/,1$QGZH
OOUDLVHWKDWZLWK
-XGJH&DPSEHOO
-8'*(&$6(2ND\
05%(5/,1%XWZHFDQFHUWDLQO\WDNHWKDW
XS
&RQILGHQWLDO
06',(75,&.$QG,KDYHVHYHUDOPRUH
WKDQVHYHUDOOD\HUVRISURWHFWLRQWHFKQRORJLFDOO\
DQGSK\VLFDOO\
-8'*(&$6(2ND\,KRSHVR$OOULJKW
05+$5'(57KDQN\RX<RXU+RQRU
-8'*(&$6(/HW
VWDONDERXWWKHQH[WWLPH
ZHJHWWRJHWKHU
05+$5'(56KRXOGZHKDYHDGLVFXVVLRQ
DERXWEULQJLQJWKHFDVHWRWULDODQG
-8'*(&$6(6XUH
7KLVGRHVQ
WQHHGWREHRQWKHUHFRUG
05+$5'(5,GRQ
WWKLQNZHQHHGLWRQWKH
UHFRUG
-8'*(&$6(5LJKW
+HDULQJFRQFOXGHGDWSP
&RQILGHQWLDO
5(3257(5
6&(57,),&$7(
67$7(2))/25,'$
&2817<2)+,//6%2528*+
,$DURQ73HUNLQV5HJLVWHUHG3URIHVVLRQDO
5HSRUWHUFHUWLI\WKDW,ZDVDXWKRUL]HGWRDQGGLG
VWHQRJUDSKLFDOO\UHSRUWWKHDERYHKHDULQJDQGWKDW
WKHWUDQVFULSWLVDWUXHDQGFRPSOHWHUHFRUGRIP\
VWHQRJUDSKLFQRWHV
,IXUWKHUFHUWLI\WKDW,DPQRWDUHODWLYH
HPSOR\HHDWWRUQH\RUFRXQVHORIDQ\RIWKH
SDUWLHVQRUDP,DUHODWLYHRUHPSOR\HHRIDQ\RI
WKHSDUWLHV
DWWRUQH\RUFRXQVHOFRQQHFWHGZLWK
WKHDFWLRQQRUDP,ILQDQFLDOO\LQWHUHVWHGLQWKH
DFWLRQ
'DWHGWKLVQGGD\RI-XO\
BBBBBBBBBBBBBBBBBBBBBBBBBBB
$DURQ73HUNLQV535
DOCUMENT:
ORDER:
PARAGRAPH: 3
CONFIDENTIAL
EXHIBIT 3-C
to the
MOTION FOR AN ORDER DECLARING THAT
PLAINTIFF HAS IMPROPERLY DESIGNATED CERTAIN
DISCOVERY MATERIALS AS ATTORNEYS EYES ONLY
1
IN THE CIRCUIT COURT OF THE SIXTH JUDICIAL CIRCUIT
IN AND FOR PINELLAS COUNTY, FLORIDA
TRANSCRIPT OF:
CONFIDENTIAL PROCEEDINGS
BEFORE:
DATE:
TIME:
3:20 p.m.
PLACE:
REPORTED BY:
2
APPEARANCES:
KENNETH G. TURKEL, ESQUIRE
Bajo Cuva Cohen & Turkel, P.A.
100 North Tampa Street
Suite 1900
Tampa, Florida 33602
- and CHARLES J. HARDER, ESQUIRE
Harder Mirell & Abrams LLP
1801 Avenue of the Stars
Suite 1120
Los Angeles, California 90057
Appeared for Plaintiff;
SETH D. BERLIN, ESQUIRE
Levine Sullivan Koch & Schulz, LLP
1899 L Street Northwest
Suite 200
Washington, DC 20036
- and PAUL J. SAFIER, ESQUIRE
Levine Sullivan Koch & Schulz, LLP
1760 Market Street
Suite 1001
Philadelphia, Pennsylvania 19103
- and GREGG D. THOMAS, ESQUIRE
Thomas & LoCicero PL
601 South Boulevard
Tampa, Florida 33606
Appeared for Defendants Gawker Media,
LLC, Nick Denton, A.J. Daulerio and for
specially appearing Defendant Blogwire
Hungary Szellemi Alkotast Hasznosito, KFT
(now known as Kinja, KFT).
3
1
* * * * * *
10
MR. HARDER:
11
12
13
14
THE COURT:
15
MR. HARDER:
16
same tape.
17
THE COURT:
18
MR. HARDER:
19
MR. BERLIN:
20
21
MR. HARDER:
22
MR. BERLIN:
I'm sorry.
I thought you
MR. HARDER:
I wasn't.
So he reported
23
24
25
were.
it to the FBI.
4
1
Davidson.
10
11
12
13
time.
And
14
15
16
17
18
19
20
21
22
23
24
25
I think
5
1
2
3
THE COURT:
MR. BERLIN:
10
11
12
13
14
15
16
THE COURT:
This obviously
17
18
Right?
19
MR. BERLIN:
20
21
22
and forth.
23
24
25
6
1
THE COURT:
your papers.
10
11
12
13
14
MR. BERLIN:
So I think
I think they
So
15
16
17
18
19
20
21
22
THE COURT:
in hot water.
MR. HARDER:
23
24
25
newsworthy.
7
1
THE COURT:
MR. BERLIN:
filed it.
So we understand it.
10
11
12
13
14
15
16
17
THE COURT:
18
MR. BERLIN:
We don't
You're in trouble.
-- they might do something.
19
20
don't do that.
21
22
23
THE COURT:
24
MR. HARDER:
25
THE COURT:
But I
8
1
MR. BERLIN:
THE COURT:
MR. BERLIN:
THE COURT:
MR. BERLIN:
others.
Okay.
The
So just --
10
THE COURT:
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Great.
Thank you.
9
CERTIFICATE OF REPORTER
STATE OF FLORIDA:
COUNTY OF HILLSBOROUGH:
I, Natalie W. Breaux, Notary Public in and
for the State of Florida at Large, do hereby certify
that I reported in shorthand the foregoing
proceedings at the time and place therein designated;
that the witness herein was duly sworn by me; that my
shorthand notes were thereafter reduced to
typewriting under my supervision; and that the
foregoing pages are a true and correct, verbatim
record of the aforesaid proceedings.
Witness my hand and seal April 25, 2014, in
the city of Tampa, County of Hillsborough, State of
Florida.
Natalie W. Breaux
Notary Public
State of Florida at Large
CONFIDENTIAL
EXHIBIT 5-C
to the
MOTION FOR AN ORDER DECLARING THAT
PLAINTIFF HAS IMPROPERLY DESIGNATED CERTAIN
DISCOVERY MATERIALS AS ATTORNEYS EYES ONLY
&RQILGHQWLDO
,17+(&,5&8,7&28572)7+(6,;7+-8',&,$/&,5&8,7
,1$1')253,1(//$6&2817<)/25,'$
&,9,/',9,6,21
7(55<*(1(%2//($
SURIHVVLRQDOO\NQRZQDV+8/.
+2*$1
3ODLQWLII&DVH1R
&,
YV
+($7+(5&/(0*$:.(50(',$
//&DND*$:.(50(',$HW
DO
'HIHQGDQWV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&21),'(17,$/$77251(<
6(<(621/<
+($5,1*%()25(7+(+2125$%/(-$0(65&$6(
'$7(-XO\
7,0(DPWRSP
3/$&(5LHVGRUSK5HSRUWLQJ*URXS
&OHYHODQG6WUHHW
6XLWH
&OHDUZDWHU)ORULGD
5(3257('%<$DURQ73HUNLQV535
1RWDU\3XEOLF6WDWHRI
)ORULGDDW/DUJH
3DJHVWR
&RQILGHQWLDO
$33($5$1&(6
&+$5/(6-+$5'(5(648,5(
+DUGHU0LUHOO $EUDPV//3
&HQWXU\3DUN(DVW
6XLWH
/RV$QJHOHV&DOLIRUQLD
DQG
.(11(7+*785.(/(648,5(
%DMR&XYD&RKHQ 7XUNHO3$
1RUWK7DPSD6WUHHW
6XLWH
7DPSD)ORULGD
$WWRUQH\VIRU3ODLQWLII
&217,18('
&RQILGHQWLDO
$33($5$1&(6&217,18('$6)2//2:6
6(7+'%(5/,1(648,5(
0,&+$(/'68//,9$1(648,5(
/HYLQH6XOOLYDQ.RFK 6FKXO]//3
/6WUHHW1:
6XLWH
:DVKLQJWRQ'&
DQG
0,&+$(/%(55<(648,5(
/HYLQH6XOOLYDQ.RFK 6FKXO]//3
0DUNHW6WUHHW
6XLWH
3KLODGHOSKLD3$
DQG
*5(**'7+20$6(648,5(
7KRPDV /R&LFHUR3/
6RXWK%RXOHYDUG
7DPSD)ORULGD
DQG
+($7+(5/',(75,&.(648,5(
*HQHUDO&RXQVHO
*DZNHU0HGLD
(OL]DEHWK6WUHHW
7KLUG)ORRU
1HZ<RUN1HZ<RUN
$WWRUQH\VIRU'HIHQGDQW*DZNHU0HGLD//&
HWDO
&RQILGHQWLDO
VXVWDLQRXUREMHFWLRQ
6RZKHQZHFDPHDFURVVWKHVDPHW\SHRI
ODQJXDJHWKDWZDVLQWKHVHVXPPDULHVE\WKH
H[WRUWLRQLVWDQGZLWKLQWKHSRVVHVVLRQRIWKH'RQ
%XFKZDOG$JHQF\ZKLFKZDVHVVHQWLDOO\WKHVDPH
WKLQJZHUHGDFWHGRXWWKRVHZRUGV$QG,EHOLHYH
LW
VILYHZRUGV
,KDYHLI\RX
UHLQWHUHVWHGLQVHHLQJD
YHUVLRQWKDWVKRZV<RXU+RQRUWKHVHZRUGVWKDWDUH
WKHH[DFWZRUGVWKDWZHUHGDFWHGRXW,ZRXOG
OLNHWKHPQRWWREHRQWKHUHFRUGEXWMXVWIRU
\RXUSHUXVDOWRKHOS\RXXQGHUVWDQGH[DFWO\ZKDW
ZHUHGDFWHGRXWDQGH[DFWO\ZKHUHLWZDVUHGDFWHG
RXWRIWKHGRFXPHQW6RLI\RXZDQWWRPDNHD
GHWHUPLQDWLRQDVWRDOORIWKHPRUVRPHRIWKHP
LW
VHQWLUHO\LQ\RXUSRVVHVVLRQDQGXSWR\RXDV
WRKRZWRGRLW
7KHUDFLDOO\RIIHQVLYHODQJXDJHKDVQRWKLQJ
WRGRZLWKWKLVFDVH,W
VKLJKO\SUHMXGLFLDO
,W
VDOOKHDUVD\EHFDXVHWKLVLVFRPLQJIURPDQ
H[WRUWLRQLVWZKRLVUHDGLQJDQDOOHJHGWDSH
WKDW
V,JXHVVOLVWHQLQJWRDQDOOHJHGWDSHDQG
WKHQSXWWLQJGRZQDQDOOHJHGVXPPDU\RIWKDW
DOOHJHGWDSHLW
VKHDUVD\LQDQ\HYHQWDQG,
GRQ
WVHHKRZLWZRXOGHYHUPDNHLWLQWR
&RQILGHQWLDO
DGPLVVLEOHHYLGHQFH
,W
VSHULSKHUDOWRWKHFDVHEHFDXVHWKHWDSH
WKDW*DZNHUUHFHLYHGDQGWKH\UHFHLYHGWKHWDSH
IURPWKH'RQ%XFKZDOG$JHQF\:HOOOHWPHEDFN
XS/HWPHEDFNXS,ZDQWWREHDFFXUDWHKHUH
7KH'RQ%XFKZDOG$JHQF\DQG7RQ\%XUWRQZKR
LVWKHDJHQWDSSDUHQWO\DVZH
YHOHDUQHGWKURXJK
GLVFRYHU\DQG*DZNHUZDVQRWIRUWKFRPLQJZLWK
LQIRUPDWLRQDWILUVWDQGLWWRRNHLJKWPRQWKVWR
JHWWKLVLQIRUPDWLRQ
%XW7RQ\%XUWRQWKHDJHQWIURP%XFKZDOG
FRQWDFWHG*DZNHU
VHGLWRULQFKLHI$-'DXOHULR
DQGVDLGWRKLP:HKDYHDFOLHQWZKRKDVDYHU\
VLJQLILFDQW'9'DQGZHZDQWWRRUWKHFOLHQW
ZDQWVWRJHWWKLV'9'WR\RX:KDW
V\RXU
DGGUHVV"
$QGWKHQDGD\RUVRODWHU*DZNHUKDV
SRVVHVVLRQRIWKH'9'WKDWFDPHLQWKURXJKWKH
PDLOZLWKQRUHWXUQDGGUHVVRQLW$QGWKHQWKHUH
ZHUHHPDLOFRPPXQLFDWLRQVWKDWWKH\SURGXFHG
HLJKWPRQWKVDIWHUZHKDGDVNHGIRUWKHPEHWZHHQ
$-'DXOHULRWKHHGLWRULQFKLHIDQG7RQ\
%XUWRQWKHDJHQWWDONLQJDERXWWKLVWDSH
$QGZKHQZHVXESRHQDHGWKH'RQ%XFKZDOG
$JHQF\DIWHUWKH\KDGVXSSOLHGXVZLWKWKHVH
&RQILGHQWLDO
5(3257(5
6&(57,),&$7(
67$7(2))/25,'$
&2817<2)+,//6%2528*+
,$DURQ73HUNLQV5HJLVWHUHG3URIHVVLRQDO
5HSRUWHUFHUWLI\WKDW,ZDVDXWKRUL]HGWRDQGGLG
VWHQRJUDSKLFDOO\UHSRUWWKHDERYHKHDULQJDQGWKDW
WKHWUDQVFULSWLVDWUXHDQGFRPSOHWHUHFRUGRIP\
VWHQRJUDSKLFQRWHV
,IXUWKHUFHUWLI\WKDW,DPQRWDUHODWLYH
HPSOR\HHDWWRUQH\RUFRXQVHORIDQ\RIWKH
SDUWLHVQRUDP,DUHODWLYHRUHPSOR\HHRIDQ\RI
WKHSDUWLHV
DWWRUQH\RUFRXQVHOFRQQHFWHGZLWK
WKHDFWLRQQRUDP,ILQDQFLDOO\LQWHUHVWHGLQWKH
DFWLRQ
'DWHGWKLVQGGD\RI-XO\
BBBBBBBBBBBBBBBBBBBBBBBBBBB
$DURQ73HUNLQV535
CONFIDENTIAL
EXHIBIT 8-C
to the
MOTION FOR AN ORDER DECLARING THAT
PLAINTIFF HAS IMPROPERLY DESIGNATED CERTAIN
DISCOVERY MATERIALS AS ATTORNEYS EYES ONLY
DESCRIPTION
BOLLEA 001068-1145
BOLLEA 001145-90
BOLLEA 001191-92
BOLLEA 001193-1216
BOLLEA 001217-32
BOLLEA 001233-53
BOLLEA 001254-66
BOLLEA 001267-79
BOLLEA 001280-92
BOLLEA 001293-1319
BOLLEA 001320-49
BOLLEA 001350-52
BOLLEA 001353-54
BOLLEA 002654-67
DESCRIPTION
DH 001-14
DH 015
DH 0018-21
DOCUMENT
DESCRIPTION
DEPOSITION
PAGES
Pages 95-114
Full Transcript
The Don Buchwald Agency designated these documents as Confidential and then
plaintiff designated them as Attorneys Eyes Only. Counsel for the Gawker Defendants are
not challenging the Agencys designation as Confidential, and ask only that plaintiffs
Attorneys Eyes Only designation be removed.
2
Tony Burton designated his deposition transcript as Confidential and then plaintiff
designated it as Attorneys Eyes Only. Counsel for the Gawker Defendants are not
challenging Mr. Burtons designation as Confidential, and ask only that plaintiffs Attorneys
Eyes Only designation be removed.
2
DATE
DESCRIPTION
DESCRIPTION
EOUSA 001-2
EOUSA 003-12
EOUSA 013-14
EOUSA 015
EOUSA 016-17
EOUSA 018
EOUSA 019-21
EOUSA 022-24
GAWKER 1-2
GAWKER 3-4
GAWKER 5
Photocopy of Tampa Bay Times article Hogan files two suits over
sex tape
GAWKER 6-7
GAWKER 8-11
GAWKER 12-14
GAWKER 15-16
GAWKER 17
GAWKER 18
FBI Form FD-1087a, dated October 23, 2012, telephone call involving
D. Houston
GAWKER 19-20
FBI Form FD-302 , dated October 24, 2012, interview with T. Bollea
and D. Houston
GAWKER 21-23
GAWKER 24-71
GAWKER 72-85
GAWKER 86
GAWKER 87-92
GAWKER 93
GAWKER 94-117
GAWKER 118
GAWKER 119
GAWKER 120
GAWKER 121
GAWKER 122-23
Redacted in Full
GAWKER 124-25
GAWKER 126-40
GAWKER 141
GAWKER 142
GAWKER 143
GAWKER 144
Redacted November 10, 2012 and November 13, 2012 emails to/from
D. Houston
GAWKER 145
GAWKER 146
GAWKER 147
GAWKER 148-50
GAWKER 151-65
GAWKER 166
GAWKER 167
GAWKER 168-69
GAWKER 170-74
GAWKER 175-79
GAWKER 180-94
GAWKER 195
GAWKER 196-207
GAWKER 208
GAWKER 209
GAWKER 210
GAWKER 211
GAWKER 212
GAWKER 213-15
GAWKER 216-18
eAgent report
GAWKER 219-20
eAgent report
GAWKER 221-22
GAWKER 223
Redacted Report
GAWKER 224-25
GAWKER 226
GAWKER 227
GAWKER 228-39
GAWKER 240-49
GAWKER 250-61
GAWKER 262
GAWKER 263-65
GAWKER 266-79
GAWKER 280
GAWKER 281-82
GAWKER 283-96
GAWKER 297
FBI Form FD-302, dated December 13, 2012, regarding telephone call
from D. Houston
GAWKER 298-312
GAWKER 313
GAWKER 314
FBI Form FD-302, dated December 13, 2012, regarding telephone call
with D. Houston
GAWKER 315-16
FBI Form FD-1087, dated December 17, 2012, regarding disc with
December 14, 2012 recorded meeting
GAWKER 317
GAWKER 318-19
FBI Form FD-1087, dated December 17, 2012, regarding disc with
December 14, 2012 recorded meeting
GAWKER 320-21
GAWKER 322
GAWKER 323-24
FBI Form FD-1087, dated December 17, 2012, regarding case with
three DVDs and settlement agreement
GAWKER 325-27
GAWKER 328-30
GAWKER 331-43
GAWKER 344
GAWKER 345
FBI Form FD-302, dated December 17, 2012, regarding telephone call
with D. Houston
GAWKER 346
GAWKER 347
GAWKER 348-49
GAWKER 350
GAWKER 351
GAWKER 352-53
GAWKER 354
GAWKER 355-56
GAWKER 357-58
eAgent report
GAWKER 359-62
GAWKER 363
GAWKER 364-82
GAWKER 383
GAWKER 384
GAWKER 385
GAWKER 386
GAWKER 387
FBI Form FD-302, dated December 18, 2012, regarding telephone call
with unknown female
GAWKER 388
FBI Form FD-302, dated December 21, 2012, regarding telephone call
with unknown female
GAWKER 389-90
GAWKER 391
GAWKER 392
GAWKER 393
GAWKER 394-400
GAWKER 401
GAWKER 402-03
GAWKER 404-08
GAWKER 409-14
GAWKER 415
FBI Form FD-302, dated January 3, 2013, regarding signed letter and
side agreement received from D. Houston
GAWKER 416-19
GAWKER 420-21
GAWKER 422-23
GAWKER 424-26
GAWKER 427
GAWKER 428-29
GAWKER 430-45
GAWKER 446
GAWKER 447
FBI Form FD-302, dated February 28, 2013, regarding FBI agents
reviewing discs
GAWKER 448
FBI Form FD-1057, dated March 19, 2013, regarding tolls uploading
GAWKER 449
GAWKER 450
GAWKER 451
FBI Form FD-1057, dated May 10, 2013, regarding tolls uploading
GAWKER 452
FBI Form FD-1057, dated May 14, 2013, regarding telephone call
with T. Bollea and D. Houston
GAWKER 453-55
FBI Form FD-1057 and notes regarding May 15, 2013 FBI Office of
Special Technology
GAWKER 456-57
FBI Form FD-1057, dated July 23, 2013, regarding case update for
case declination
GAWKER 458-61
D. Houston expenses and FBI Form FD-794, dated July 23, 2013, for
D. Houston expenses paid for by FBI
GAWKER 462-63
GAWKER 464-65
GAWKER 466-67
GAWKER 468
GAWKER 469
GAWKER 470
GAWKER 471
GAWKER 472-73
FBI Form FD-999, dated January 16, 2015, regarding discussion with
unknown Tampa Police Department Detective
GAWKER 474-76
GAWKER 477
GAWKER 478
FBI Form FD-1036, dated February 11, 2015, regarding email with
AUSA
GAWKER 479
GAWKER 480-82
GAWKER 483
GAWKER 484
GAWKER 485
GAWKER 486-89
GAWKER 490
Redacted FBI Form FD-340, dated October 15, 2012 regarding receipt
of evidence
GAWKER 491-93
11
GAWKER 494
GAWKER 495-508
GAWKER 509
GAWKER 510-12
GAWKER 513
GAWKER 514-61
GAWKER 562
GAWKER 563
GAWKER 564
GAWKER 565
GAWKER 566
GAWKER 567
GAWKER 568
GAWKER 569
GAWKER 570
GAWKER 571
GAWKER 572
GAWKER 573
GAWKER 574
GAWKER 575-81
GAWKER 582
GAWKER 583
GAWKER 584
GAWKER 585-86
GAWKER 587
GAWKER 588
GAWKER 589
GAWKER 590
GAWKER 591-92
GAWKER 593
GAWKER 594
GAWKER 595
GAWKER 596-97
GAWKER 598
GAWKER 599
GAWKER 600
GAWKER 601
Blank page dated December 20, 2012 with case file number
GAWKER 602
GAWKER 603
GAWKER 604
Blank page dated December 20, 2012 with case file number
GAWKER 605
GAWKER 606
GAWKER 607
GAWKER 608-721
GAWKER 722
13
GAWKER 723
GAWKER 724
GAWKER 725-44
GAWKER 745
GAWKER 746
GAWKER 747-50
GAWKER 751
GAWKER 752
GAWKER 753-73
GAWKER 774
GAWKER 775-87
GAWKER 788
GAWKER 789-92
GAWKER 793
GAWKER 794-98
GAWKER 799
GAWKER 800
GAWKER 801
GAWKER 802
14
GAWKER 918
GAWKER 919
GAWKER 920
GAWKER 921
GAWKER 922
GAWKER 923
GAWKER 924
GAWKER 925
GAWKER 926
GAWKER 927
GAWKER 928
GAWKER 929
GAWKER 930-32
GAWKER 933
GAWKER 934-39
GAWKER 940
GAWKER 941
GAWKER 942
GAWKER 943-44
Redacted FBI Form FD-472, dated December 13, 2012, for recording
device on D. Houston
GAWKER 945-46
15
GAWKER 947-48
GAWKER 949-50
GAWKER 951-74
GAWKER 975
GAWKER 976
GAWKER 977-78
GAWKER 979
GAWKER 980
GAWKER 981
GAWKER 982
GAWKER 983-84
GAWKER 985
GAWKER 986
GAWKER 987
GAWKER 988
GAWKER 989
GAWKER 990-92
GAWKER 993
GAWKER 994
GAWKER 995
GAWKER 996-98
GAWKER 999
GAWKER 1000
16
GAWKER 1001-03
GAWKER 1004
GAWKER 1005
GAWKER 1006
GAWKER 1007
GAWKER 1008
GAWKER 1009
GAWKER 1010-15
GAWKER 1016
GAWKER 1017
GAWKER 1018
GAWKER 1019
GAWKER 1020
GAWKER 1021
GAWKER 1022
GAWKER 1023
GAWKER 1024
GAWKER 1025
GAWKER 1026-28
GAWKER 1029
GAWKER 1030-34
GAWKER 1035
GAWKER 1036
GAWKER 1037
17
GAWKER 1038
GAWKER 1039
GAWKER 1040
GAWKER 1041
GAWKER 1042
GAWKER 1043
GAWKER 1044
GAWKER 1045-78
GAWKER 1079-80
GAWKER 1081
GAWKER 1082-96
GAWKER 1097
GAWKER 1098
GAWKER 1099
GAWKER 1100
GAWKER 1101
GAWKER 1102-07
GAWKER 1108
GAWKER 1109
GAWKER 1110
GAWKER 1111
GAWKER 1112-18
GAWKER 1119
GAWKER 1120
GAWKER 1121-29
GAWKER 1130
GAWKER 1131-34
GAWKER 1135
GAWKER 1136
GAWKER 1137-41
GAWKER 1142-46
GAWKER 1147-51
GAWKER 1152
GAWKER 1153-72
GAWKER 1173
GAWKER 1175-78
19