,GHDO3URWHLQ:HLJKW/RVV0HWKRG
)$4¶63URWRFRO
+RZLVWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRGGLIIHUHQWIURPRWKHUSURWHLQ
GLHWVRQWKHPDUNHW"
•
•
•
•
•
7KH,GHDO3URWHLQZHLJKWORVVPHWKRGWUHDWVZHLJKWLVVXHVDWLWVVRXUFH%\WKHWLPH
\RX UHDFK \RXU ZHLJKW ORVV JRDO \RX ZLOO KDYH WUDQVIRUPHG \RXU ERG\¶V DELOLW\ WR
PHWDEROL]HVXJDUE\UHHGXFDWLQJ\RXUSDQFUHDVWRSURGXFHRQO\WKHULJKWDPRXQWRI
LQVXOLQQHHGHG
7KH,GHDO'LHWDLPVDWUHGXFLQJFDUERK\GUDWHVDQGIDWVQRWSURWHLQ,QGRLQJVRLW
SUHVHUYHVPXVFOHWLVVXHDQGSURWHFWVYLWDORUJDQVWRVHFXUHWKHLUSURSHUIXQFWLRQ,Q
RWKHUZRUGV\RXZLOOORVHIDWQRWPXVFOH
7KH,GHDO3URWHLQZHLJKWORVVPHWKRGIHDWXUHVXSWRDZKRSSLQJJUDPVRISURWHLQ
SHUSRUWLRQWZLFHDVPXFKDVPRVWRIWKHFRPSHWLWLRQ
7KH ,GHDO 3URWHLQ :HLJKW ORVV PHWKRG IHDWXUHV D KLJK ELRORJLFDO SURWHLQ FRPSOHWH
ZLWKHLJKWHVVHQWLDODPLQRDFLGVWKDWUHFUHDWHVRIWKHELRORJLFDOYDOXHRID
FRPSOHWHSURWHLQIRUPD[LPXPDVVLPLODWLRQDQGDEVRUSWLRQ
7KH,GHDO3URWHLQ:HLJKWORVVPHWKRGLVOHVVWR[LFWKDQRWKHUSURWHLQGLHWVEHFDXVHLW
IHDWXUHVOHVVVDWXUDWHGIDWVQRWUDQVIDWVQRDVSDUWDPHQR0RQRVRGLXP*OXWDPDWH
06*DQGQR*HQHWLFDOO\0RGLILHG2UJDQLVPV*02V
,VWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRGVDIH"
2XUSURWRFROLVVDIHIRUHYHU\RQHH[FHSWWKRVHZLWKDG\VIXQFWLRQDOOLYHURUNLGQH\V
'LDEHWLFV 7\SH , VKRXOG RQO\ GR WKH $OWHUQDWLYH SURWRFRO DQG ZRPHQ ZKR DUH
SUHJQDQW RU EUHDVW IHHGLQJ VKRXOG RQO\ XVH WKH ,GHDO 3URWHLQ¶V SURWHLQ IRRGV WR
VXSSOHPHQWWKHLUGLHW
:KDWLVWKHGLIIHUHQFHEHWZHHQWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRGDQG
WKH$OWHUQDWLYH3ODQ"
%RWKSURWRFROVKDYHSKDVHV
•
•
•
•
3KDVH6XFFHVV
3KDVH6XFFHVVPLQLPXPZHHNV
3KDVH0DLQWHQDQFH
3KDVH6WDELOL]DWLRQ
7KH RQO\ GLIIHUHQFH EHWZHHQ WKHP LV WKDW RQ WKH $OWHUQDWLYH 3ODQ GLHWHUV DUH
SHUPLWWHGXSWRWKUHHDGGLWLRQDOIRRGLWHPVSHUGD\RQHIURPHDFKRIWKHWKUHH
GLIIHUHQW IRRG JURXSV FDUERK\GUDWHV *URXS , IUXLWV *URXS ,, DQG IDWV *URXS
,,,
7KH$OWHUQDWLYH3ODQUHGXFHVSRWHQWLDOFUDYLQJVDQGPDNHV LWHDVLHUWREHIDLWKIXOWR
WKHSURWRFRODQGVWLOOORVHZHLJKWRQO\DOLWWOHVORZHUWKDQRQRXUZHLJKWORVVPHWKRG
7KH$OWHUQDWLYHSODQLVIRUSHRSOHZKRVLPSO\DUHQRWZLOOLQJWRIRUHJRWKHLUPRUQLQJ
WRDVWRUGDLO\IUXLWIRUH[DPSOH
3OHDVHQRWHWKDWWKHFKDQFHVRIQRWUHJDLQLQJWKHORVWZHLJKWDUHJUHDWO\LQFUHDVHGE\
IROORZLQJ WKH ,GHDO 3URWHLQ :HLJKW ORVV PHWKRG WKH SDQFUHDV LV JLYHQ WKH
XQHTXLYRFDO FKDQFH RI UHVWRULQJ LWV SURSHU UHJXODWLRQ RI JO\FHPLD 7KH DOWHUQDWLYH
SODQ GRHV QRW NHHS WKH ERG\ LQ NHWRJHQLF VWDWH DQG WKHUHIRUH LV VDIH IRU 7\SH ,
GLDEHWLFV ZKR FRXOG EH DW ULVN IRU GHYHORSLQJ NHWRDFLGRVLV LI SODFHG RQ D NHWRJHQLF
GLHW
:K\LVH[HUFLVH127UHFRPPHQGHGGXULQJWKH,GHDO3URWHLQ:HLJKW/RVV
0HWKRG"
'LHWHUV RQ WKH SURWRFRO DUH RQ D YHU\ ORZ FDORULF GLHW \HW WKHLU ERG\ LV DFWXDOO\
JHWWLQJPRUHFDORULHVWKDQWKH\ZHUHSULRUWRVWDUWLQJRXUSURWRFRO:K\"%HFDXVH
WKH\ DUH EXUQLQJ XVLQJ WKHLU IDW VWRUHV IDW 7KH\ DUH JHWWLQJ DERXW .FDOV SHU
GD\IURPWKHIRRGVWKH\DUHHDWLQJRQ3KDVHEXWLIWKH\ORVHOEVSHUZHHNRQ
DYHUDJH[.FDOOERIIDWPHDQV.FDOZHHNGLYLGHE\HTXDOV
.FDOVSHUGD\7KH\DUHDFWXDOO\FRQVXPLQJ.FDO.FDOV .FDOVSHU
GD\ 8QGHUVWDQG WKHLU ERGLHV PXVW PDNH WKH QHFHVVDU\ HQ]\PHV WR IXOO\ EXUQ WKH
NHWRQLF ERGLHV WKDW DUH SURGXFHG IURP IDW PHWDEROLVP EHWD R[LGDWLRQ ,W WDNHV
DERXW WZR ZHHNV IRU WKLV WR KDSSHQ 'XULQJ WKH ILUVW ZHHNV \RXU ERG\ LV JHWWLQJ
WKH QHFHVVDU\ HQ]\PDWLF PDFKLQHU\ LQ SODFH VR LW FDQ XVH RI WKH NHWRQLF
ERGLHV IRU FHOOXODU IXHOWKDW \RXU ERG\ LV SURGXFLQJ IURP EXUQLQJ WKH IDW ,Q WKH
ILUVW FRXSOH RI ZHHNV LW FDQQRW XVH DOO RI WKHP DQG \RX EUHDWK WKHP RXW DFHWRQH
EUHDWK SHH WKHP RXW NHWRVWL[ WXUQ SXUSOH ZKHQ \RX GLS WKHP LQ \RXU XULQH RU
\RXH[FUHWHH[FHVVNHWRQHVLQ\RXUIHFHV
,I\RXUEORRGVXJDUJHWVWRRORZGXULQJWKLVWLPHSHULRGWKHSURWHLQVZHVXSSO\DQG
WKHPXVFOH\RXKDYHFDQXQGHUJRJOXFRQHRJHQHVLVDQGJOXFRVHFDQEHSURGXFHG
,I \RX LQFUHDVH WKH JOXFRVH GHPDQG LH H[HUFLVH YLJRURXVO\ GXULQJ WKHVH ILUVW
ZHHNV\RXZLOOLQFUHDVHJOXFRQHRJHQVLVPDUNHGO\7KLV&$1UHVXOWLQPXVFOHORVV
620(7+,1*:(:$1772$92,',I\RX0867H[HUFLVHGXULQJWKHILUVWZHHNV
SOHDVH GR LW OLJKWO\ WR \RXU QRUPDO LQWHQVLW\ RU QRW DW DOO +HUH
V WKH
EHDXW\ RI WKH SURJUDP 'XULQJ WKLV SHULRG\RX OLWHUDOO\ DUH SHHLQJ RXW FDORULHV
ZLWKRXWKDYLQJWRH[HUFLVH<RXZLOO ORVHWKH VDPHDPRXQW RIZHLJKWEXWZLOO QRW
ULVN ORVLQJ PXVFOH 7KLV LV QRW DERXW FDORULHV LQ FDORULHV RXW LW
V DERXW KRUPRQHV
DQG PHWDEROLVP 7KH\ ZHUH ILJKWLQJ D KRUPRQH ,QVXOLQ EHIRUH DQG \RX FDQ
W
H[HUFLVH\RXUZD\RXWRIWKDWWKHKRUPRQHDOZD\VZLQV$IWHUWKHILUVWZHHNV\RX
PD\H[HUFLVHEXWSOHDVHNHHSLQPLQG
•
•
•
'RQRWJHWRYHUO\WLUHG
6XSSOHPHQWV DUH D PXVW VHULRXV FDUGLDF SUREOHPV
FDQUHVXOWDUU\WKPLDVWDFK\FDUGLDHWF
.HHSZHOOK\GUDWHGLIH[HUFLVLQJ\RXPXVWLQFUHDVH\RXU
ZDWHU
:K\LVGLHWVRGDGLVFRXUDJHGGXULQJWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRG"
$OO GLHW GULQNV LH VXJDUIUHH FDUEIUHH DUH 127 FRQWUDLQGLFDWHG RQ WKH ,GHDO
3URWHLQ:HLJKW/RVV0HWKRG7KHSUREOHPWKDWFDQDULVHLVLPEDODQFHVLQDFLGEDVH
UHJXODWLRQ2XUSURWRFROLVYHU\DONDOLQHDQGWKLVLVZK\ZHGRQRWVHHFRPSOLFDWLRQV
FRPPRQWRRWKHUSURWHLQW\SHGLHWVQDPHO\NLGQH\VWRQHVJRXWERQHVSXUVHWF
6RPH GLHW GULQNV &U\VWDO /LJKW IRU H[DPSOH DUH PL[HG ZLWK ZDWHU DQG WKHVH DUH
DFFHSWDEOH 0DQ\ RWKHUV IODYRUHG $TXDILQD 'DVDQL HWF FRQWDLQ DORW RI
SKRVSKRULF DFLG 7KLV LV D YHU\ VWURQJ DFLG DQG ZLOO SOD\ KDYRF ZLWK WKH ERG\
V
ELFDUERQDWH EXIIHULQJ V\VWHP 7KH VDPH JRHV IRU GLHW VRGDVSDUWLFXODUO\ WKH
EURZQ RQHV&RNH 3HSVL 'U 3HSSHU URRW EHHU HWF )ODYRUHG VHOW]HUV DUH
XVXDOO\ 2. MXVW UHDG WKH ODEHO DQG PDNH VXUH LW LV FDUEIUHH DQG FRQWDLQV QR
SKRVSKRULFDFLG&DUERQDWHGEHYHUDJHVFRQWDLQ&2ZKLFKZKHQGLVVROYHGLQZDWHU
EHFRPHV FDUERQLF DFLG D ZHDN DFLG XQOLNH SKRVSKRULF 7R KDYH D JODVV RI WKHVH
RFFDVLRQDOO\ZRXOGQRWEHDSUREOHPEXWFRQVXPLQJODUJHDPRXQWVOLNHLQSODFHRI
WKHOLWHUVRIZDWHUSHUGD\ZRXOGQRWEHDJRRGLGHD7KH S+ RI 3HUULHU LV DERXW
ZHDNO\ DFLGLF 2XU SURWRFRO SURYLGHV VR PDQ\ KHDOWK EHQHILWV EHVLGHV ZHLJKW
ORVV LW ZRXOG EH D VKDPH WR FRPSURPLVH VRPH RI WKH EHQHILWV E\ FRQVXPLQJ WKHVH
SURGXFWV $FLG EDVH EDODQFH SOD\V D PDMRU UROH LQ SK\VLRORJ\ SDUWLFXODUO\ LQ VXFK
FRQGLWLRQVDVRVWHRSRURVLVJRXWKDUGHQLQJRIWKHDUWHULHVDQGDPRUHDFLGLFEORRG
GRHVQRWFDUU\R[\JHQDVZHOO8VLQJVXJDUIUHHFDUEIUHHGULQNVDQGGLHWVRGDVZLOO
QRWFRPSURPLVH\RXUZHLJKWORVVSURYLGLQJ\RX GULQN H[WUD ZDWHU LI WKHVH GULQNV
FRQWDLQFDIIHLQHUHPHPEHUDQH[WUDFXSRIZDWHUIRUHYHU\FXSRIFRIIHH\RXGULQN
VDPH WKLQJ KHUH WKH GLHWHU ZKR FKRRVHV WR XVH WKHVH SURGXFWV DORW ZLOO QRW
UHFHLYHDOORIWKHZRQGHUIXOEHQHILWVRIWKHSURJUDP
&DQGLHWHUVHDW³VXJDUIUHH´FDQG\RQO\FRQWDLQLQJVXJDUDOFRKRO"
7KHUH DUH PDQ\ GLIIHUHQW W\SHV RI VXJDU DOFRKROV VRPH DUH PRUH HDVLO\ DEVRUEHG
[\OLWRO DQG VRPH DUH DEVRUEHG YHU\ SRRUO\ HU\WKULWRO ,I WKH\ DUH DEVRUEHG WKH\
FDQDIIHFWEORRGVXJDU$VDUXOHRIWKXPEGLYLGHWKHJUDPVRIVXJDUDOFRKROVE\
DQG FRQVLGHU WKDW WKH QXPEHU RI JUDPV RI FDUERK\GUDWHV WKDW DUH EHLQJ FRQVXPHG
,I\RXKDYHJUDPVRIVXJDUDOFRKROLQWKHPLQWV RWKHUFDUE DERXWJUDPVRIDEVRUEDEOHFDUERK\GUDWHV,I\RXGHFLGHWRHDWDVHUYLQJRIWKLV
RQ3KDVHVGRQ
WKDYHDQ\³UHVWULFWHGIRRGVWKDWGD\
,IDGLHWHULVKXQJU\FDQKHVKHKDYHDGGLWLRQDO,GHDO3URWHLQHQYHORSHV"
<HV GXULQJ WKH ILUVW ZHHN RQO\ $ GLHWHU PD\ KDYH XS WR ILYH ,GHDO 3URWHLQ
HQYHORSHVSHUGD\EXWQRPRUHWKDQRQH,GHDO3URWHLQUHVWULFWHGIRRGV
:K\LVIUXLWQRWDOORZHGRQWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRG"
:KLOHIUXLWVGRQRWPDNH\RXJDLQZHLJKWWKH\FDQVORZGRZQDQGHYHQSUHYHQW\RX
IURP ORVLQJ ZHLJKW 7KDW¶V EHFDXVH RQFH PHWDEROL]HG E\ WKH ERG\ IUXLWV WUDQVIRUP
LQWRVXJDURUJOXFRVHDQGWKHJOXFRVHUHVHUYHLVSUHFLVHO\WKDWZKLFK\RXZDQWWR
GHSOHWH LQ RUGHU WR JHW \RXU ERG\ WR EHJLQ WR EXUQ FDORULHV IURP \RXU H[FHVV IDW
VXSSO\
)UXLWV DUH GHQLHG RQ WKH SURWRFRO RQO\ XQWLO WKH ZHLJKW ORVV JRDO LV DFKLHYHG )UXLWV
DUH ODWHU LQWURGXFHG LQ WKH VWDELOL]DWLRQ SHULRG RI WKH SURWRFRO RQFH \RXU SDQFUHDV¶
SURSHUPHWDEROL]LQJRIVXJDUVKDVEHHQUHVWRUHG
<RX VKRXOG NQRZ WKDW WKH ERG\ VWRUHV QR PRUH WKDQ WKUHH GD\V¶ ZRUWK RI
FDUERK\GUDWHV LQ \RXU ERG\ 7KH JRDO RI WKH SURWRFRO LV WR HPSW\ WKH ERG\¶V
UHVHUYHV RI FDUERK\GUDWHV VR WKDW LW FDQ EHJLQ WR EXUQ LWV UHVHUYH RI H[FHVV IDW DOO
WKHZKLOHUHPDLQLQJDOHUWDQGYLJRURXVWKURXJKPXVFOHEXLOGLQJDQGRUJDQSURWHFWLQJ
SURWHLQ IRRGV VXFK DV ,GHDO 3URWHLQ IRRGV HJJV OHDQ PHDWV SRXOWU\ ILVK DQG
VHDIRRG
:KDWVKRXOGDGLHWHUNQRZEHIRUHVWDUWLQJWKH,GHDO3URWHLQ:HLJKW/RVV
0HWKRG"
$OWKRXJK PDQ\ SHRSOH GR QRW H[SHULHQFH DQ\ GLVFRPIRUW DQG IHHO XWWHUO\
VDWLVILHG WKURXJKRXW WKH SURWRFRO VRPH PD\ H[SHULHQFH ³ZLWKGUDZDO´ V\PSWRPV
GXULQJ WKH ILUVW IHZ GD\V RI WKH GLHW 7KLVLV DEVROXWHO\ QRUPDO DQG VKRXOG HYHQ EH
DQWLFLSDWHGHVSHFLDOO\E\WKRVHZKRDUHXVHGWRFRQVXPLQJDORWRISURFHVVHGIRRGV
VZHHWVDQGVDOW\IRRGV
6HH³+RZ<RXU%RG\0D\,QLWLDOO\5HVSRQG´IRUDGHWDLOHGH[SODQDWLRQ
•
•
•
•
&DQD'LHWHUH[SHFWFRQVLVWHQWZHLJKWORVV"
<HV:RPHQZLOOORVHRQDYHUDJHOEV0HQOEVSHUZHHN,IWKHSURWRFROLV
IROORZHGZLWKRXWDQ\GHYLDWLRQVDQGZHLJKWORVVLVQRWDFKLHYHGLQDQ\JLYHQZHHNLW
LVGXHWRRQHRIWKHIROORZLQJUHDVRQ
,QWHQWLRQDORUXQLQWHQWLRQDOGHYLDWLRQVIURPWKHSURJUDPFKHDWV
3UHRU3HULO0HQRSDXVDO:RPHQ
&RQVWLSDWLRQ
0XVFOHJDLQYV)DW/RVV
6HH³,UUHJXODU:HLJKW/RVV´IRUDGHWDLOHGH[SODQDWLRQ
:KDWLVVXFUDORVH"
6XFUDORVHLVDVZHHWHQHUGHULYHGIURPVXJDUFDQH,WWDVWHVOLNHVXJDUEXWWKDQNVWR
DSURFHVVVXFUDORVHKDV]HURFDORULHVDQGLVQRWDVVLPLODWHGE\WKHERG\ZKLFK
PHDQVWKDWLWKDV]HURLPSDFWRQWKHEORRGDQGLWVJO\FHPLD
,I \RX ILQG DQ ,GHDO 3URWHLQ IRRG WRR VZHHW VLPSO\ ³VWUHWFK´ LW ZLWK D OLWWOH PRUH
ZDWHU
:K\LV6HD6DOWFRPSXOVRU\GXULQJWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRG"
7KH 86'$ 86 'HSDUWPHQW RI $JULFXOWXUH )RRG *XLGH UHFRPPHQGV WKDW SHRSOH
FRQVXPH PJ DSSUR[LPDWHO\ WHDVSRRQ RI VDOW SHU GD\ 7KDW TXDQWLW\ LV
RIWHQH[FHHGHGE\WKHPHUHSUHVHQFHRIWKHEXONRILQGXVWULDOIRRGVFRQVXPHGHDFK
DQGHYHU\GD\LQ1RUWK$PHULFDLQFOXGLQJEUHDGVSDVWDVDQGFKHHVHVDOOVDWXUDWHG
ZLWK VDOW 7KDW¶V ZK\ PRVW GRFWRUV WHOO WKHLU SDWLHQWV WR VWD\ DZD\ IURP VDOW
JHQHUDOO\VSHDNLQJ:LWKDOOWKDWVDOW\RXQHHGQRWDGGPRUHVDOWWR\RXUIRRG
7KH,GHDO3URWHLQ:HLJKW/RVV0HWKRGKDVQRQHRIWKHVHLQGXVWULDOIRRGV$QGHYHQLI
FKRLFHV RI WKH ,GHDO 3URWHLQ HQYHORSHV DUH VDOWHG \RX QHHG WR DGG VHD VDOW WR \RXU
GLHW OLJKWO\ VSULQNOH \RXU YHJHWDEOHV DQG \RXU SURWHLQ VRXUFH ZKDWHYHU LW PD\ EH
PHDWSRXOWU\ILVKVHDIRRGHJJVRUWRIXZLWKVHDVDOWWRHQVXUHWKDW\RXUERG\KDV
DOOWKHVRGLXPLWQHHGVWRIXQFWLRQSURSHUO\
:KDWLVWKHUHODWLRQVKLSEHWZHHQDQDOOHUJ\WRVKHOOILVKDQG6HD6DOW"
6HD VDOW KDV QRWKLQJ WR GR ZLWK VKHOOILVK $OOHUJLHV DUH XVXDOO\ FDXVHG E\ SURWHLQ
PROHFXOHV OLNH FKLWLQ QRW LQRUJDQLF PLQHUDOV 6RPH SDWLHQWV PLJKW EH DOOHUJLF WR
IUHVKZDWHUVKULPSDQGFODPVZKHUHWKHUHLVQRVHDZDWHU
,VWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRGFRQVLGHUHGDKLJKPHGLXPRUORZ
FDORULHGLHW"
7KH SURWRFRO ZRXOG EH FRQVLGHUHG D PHGLXP WR ORZ FDORULH GLHW ZKHUHDV WKH
$OWHUQDWLYH3ODQZKLFKLQFRUSRUDWHVDGGLWLRQDOIRRGVIURP*URXSV,,,DQG,,,ZRXOG
EHFRQVLGHUHGDPHGLXPFDORULHGLHW1HLWKHUSURWRFROLVFRQVLGHUHGDK\SRSURWHLQ
GLHW QRU D K\SHU SURWHLQ GLHW 7KH ,GHDO 3URWHLQ :HLJKW /RVV 0HWKRG RIIHUV WKH
RSWLPDO TXDQWLW\ RI SURWHLQV YLWDPLQV DQG PLQHUDOV UHTXLUHG WR HQVXUH WKH SURSHU
IXQFWLRQLQJRIDOOERG\V\VWHPV
$UH WKHUH DQ\ PHGLFDOOHJDO SUREOHPV WR FRQVLGHU LQ UHFRPPHQGLQJ GLHWV
OHVV WKDQ FDORULHV D GD\ FRQVLGHULQJ EDODQFHG YHUVXV XQEDODQFHG
SURJUDPV"
7KH ,GHDO 3URWHLQ :HLJKW /RVV 0HWKRG LV EDVHG RQ WKH 1$$6&2 1RUWK $PHULFDQ
$VVRFLDWLRQIRUWKH 6WXG\ RI 2EHVLW\ JXLGHOLQHV ,W VWDWHV WKDW D ORVV RI RI
ERG\ ZHLJKW SHU ZHHN LV WRWDOO\ KHDOWK\´ 7KH 86'$ )RRG 3\UDPLG UHFRPPHQGV
WKDWRIFDORULHVVKRXOGFRPHIURPSURWHLQ%DVHGRQD.FDOGLHWSHUGD\
WKLV HTXDWHV WR .FDOV FRPLQJ IURP SURWHLQ SURWHLQ JUDPV .FDO VR JUDPVRISURWHLQLVWKHPLQLPXPGDLO\DOORZDQFHDFFRUGLQJWKH86'$
/HW¶VVXSSRVH\RXKDYHDOEIHPDOH6KHZLOOSUREDEO\ORVHRQDYHUDJHOEVSHU
ZHHN,WPHDQVH[DFWO\,IVKHHDWVRQO\WKHYHU\ORZFDUEIRRGVVKHZLOODGG
.FDOGD\,IWKHDYHUDJHZHLJKWORVVLVOEVRIIDWSHUZHHNOERIIDW .FDOWKHERG\FRQVXPHV;.FDO .FDOZHHN1RZGLYLGHGE\ .FDOSHUGD\IURPERG\IDW6RQRZDGG.FDOIURPRXUIRRG
.FDOVIURPERG\IDWDQG\RXZLOOVHHWKDWRXUSURWRFROSURYLGHV.FDOVGD\DW
D EDUH PLQLPXP :H WULJJHUHG WKH SK\VLRORJLFDO PHFKDQLVP IRU WKHP WR ORVH IDW
ZKLOHJLYLQJWKHERG\WKLVVHHPLQJO\HQRUPRXVDPRXQWRIFDORULHV
:K\DUHSURWHLQIRRGVVRYLWDO"
7KH LPPXQH V\VWHP DOO RI \RXU YLWDO RUJDQV \RXU H\HV \RXU QDLOV \RXU KDLU \RXU
VNLQDQG\RXUPXVFOHVDOODUHPDGHRISURWHLQ
0XVFOHVDUHWKHHQJLQHWKDWEXUQVFDORULHV6RWKHPRUHPXVFOH\RXKDYHWKHPRUH
FDORULHV\RXEXUQDQGWKHPRUHFDORULHV\RXEXUQWKHPRUHIDW\RXEXUQ7KDW¶VZK\
PHQ ORVH ZHLJKW IDVWHU WKDQ ZRPHQ EHFDXVH W\SLFDOO\ PHQ KDYH JUHDWHU PXVFOH
PDVVWKDQZRPHQ
:K\ DUH WKH 1DWXUD VXSSOHPHQWV FRPSXOVRU\ GXULQJ WKH ,GHDO 3URWHLQ
:HLJKW/RVV0HWKRG"
It is important for people following the protocol to ensure they take the recommended
supplements as specified to compensate for nutrients otherwise present in foods from
Groups I, II and III. If they don’t, their body’s systems will be lacking the nutrients
they need to function optimally.
:K\DUHFRRNHGRQLRQVQRWDOORZHG"
&RRNLQJEUHDNVORQJFKDLQHGVXJDUVZKLFKGLJHVWVORZO\DQGGRQRWUDLVHWKHEORRG
VXJDU UDSLGO\ GRZQ WR VKRUWFKDLQHG RQHV RU 0RQRVDFFKDULGH¶V VPDOO VXJDU
PROHFXOHVWKDWDUHHDVLO\DEVRUEHG,WUDLVHVEORRGJOXFRVHDQGFRQVHTXHQWO\FDXVH
D³EODVWRILQVXOLQ´WREHUHOHDVHG7KLVLVFRXQWHUSURGXFWLYHWRWKHSURWRFRO7KLVLV
WUXHZKHWKHU\RXVDXWpRUEDNHWKHP
+RZGRZHGHWHUPLQHDGLHWHU
VSURWHLQQHHGVFDORULHQHHGVZKHQWKH\DUH
RYHU SRXQGV"
([ &DVH $ ,I D SHUVRQ LV SRXQGV DQG IDW ZK\ GR WKH\ QHHG
PRUHFDORULHVWKDQVRPHRQH&DVH%ZKRLVSRXQGVDQGERG\IDW
LIERWKKDYHDOHDQERG\PDVVRISRXQGV"
&DVH$7KLVSDWLHQWZHLJKVOEVDELJJX\+HUHODWHVWKDWKHSOD\HGFROOHJH
IRRWEDOO DQG ZDV LQ JUHDW VKDSH DW OEV OLQHEDFNHU +LV JRDO LV WR EH DURXQG
OEV :H DUH QRW WDONLQJ DERXW WKH %0, DV WKH OHDQ ZHLJKW RXU OHDQ ZHLJKW LV D
ZHLJKW ZKHUH WKH SDWLHQW GRHVQ
W VXIIHU IURP KHDOWK ULVNV RI REHVLW\ KLJK %3 EDG
OLSLGVKLJKEORRGVXJDUHWFGRHVQ
WVXIIHUIURPHPRWLRQDODQ[LHW\RIEHLQJIDWDQG
FDQZHDUZKDWWKH\ZDQWQRWZKDWWKH\KDYHWRSUHWW\XQVFLHQWLILF,JXHVVEXW
SUDFWLFDO 6R KHUH ZH DUH JRLQJ WR EDVH RXU SURWHLQ FDOFXODWLRQ RQ OEV QRW OEV
2XUJXLGHOLQHVIRUERWKPHQDQGZRPHQRQ3KDVHRIRXUSURJUDPVWDWHWKDWOHDQ
ZHLJKWRUJRDOZHLJKWRIXSWROEVSDFNHWVRI,GHDO3URWHLQSOXVRQHZKROH
SURWHLQIRRGWRR]VRIPHDWIRULQVWDQFH0HDW\LHOGVDERXWJUDPVRISURWHLQ
SHURXQFHRIZHLJKWVRDR]SLHFHRIILOHWPLJQRQZRXOGJLYH\RXDERXWJUDPV
RI SURWHLQSOXV RUPLQXV:H KDYH [ JUDPVIURP,3 JUDPV SOXV R]
PHDW [ JR] JUDPV WRWDOLQJ JUDPV RI SURWHLQ RU DOPRVW H[DFWO\ JUDPSURWHLQSHUSRXQGRIOHDQERG\ZHLJKWOEV[J J
•
•
•
,I WKH GLHWHU KDV D OHDQ ERG\ ZHLJKW RI OEV WR OEV ZH DGG DQRWKHU
HQYHORSHWKHHQYHORSHVDQGWKHZKROHPHDO
,I WKH GLHWHU KDV D OHDQ ERG\ ZHLJKW RI OEV WR OEV ZH DGG HQYHORSHV WKHHQYHORSHVDQGWKHZKROHPHDO
,IWKHGLHWHUKDVDOHDQRUJRDOZHLJKWRIOEVWROEVDGGHQYHORSHVWRWKH
VWDQGDUGHQYHORSHVWKHZKROHPHDOIRUDWRWDORIHQYHORSHVRI,3
%DVLFDOO\HYHU\OEVRYHUOEVDGGDQRWKHUHQYHORSHRI,GHDO3URWHLQ)RRG6R
LQ&DVH$ RXU H[IRRWEDOO SOD\HUZRXOG JHW HQYHORSHV RI,3SOXVKLVZKROHPHDO
SHUGD\RQ3KDVH
,VWRIXDOORZHGRQWKHGLHW"
7RIX LV DOORZHG DQG 7HPSHK ZKLFK LV D -DSDQHVH IHUPHQWHG WRIX
DV ZHOO 3ODLQ
7RIX KDV DERXW JUDPV RI SURWHLQ SHU RXQFH RI UDZSURGXFW VR WKH GLHWHU ZRXOG
ZDQW DERXW WR RXQFHV WR FUHDWH D PHDO DURXQG %H FDUHIXO ZLWK VRPH RI WKH
IODYRUHGWRIXEHFDXVHWKH\PLJKWKDYHWRRPDQ\FDUERK\GUDWHVWRWDOFDUEVVKRXOG
EH OHVV WKDQ JUDPV SHU VHUYLQJ $OVR WKHUH DUH PDQ\ VR\ PHDW SURGXFWV RXW
WKHUH OLNH 7RIXUNH\ HWF DQG WKH GLHWHU VKRXOG UHDG WKH ODEHOV 0RVW RI WKH
*DUGHQ %XUJHUV DUH XQDFFHSWDEOH DV WKH\ KDYH OLWWOH SURWHLQ JUDPV DQG
ZD\WRRPDQ\FDUERK\GUDWHV
$UH'LHWHUVDOORZHGWRHDW,GHDO3URWHLQHQYHORSHVRQ3KDVH"
3KDVH LV QRW D ZHLJKW ORVV SKDVH GLHWHUV DUH RQ D SKDVH WKDW PDLQWDLQV WKHLU
ZHLJKW :H DUH JRLQJ WR UHLQWURGXFH FDUERK\GUDWHV LQ 3KDVH WR ZDNH XS WKH
SDQFUHDVEXWDOVRWROLPLWWKHLQWDNHWROHVVWKDQJUDPVDWWKLVPHDO7ZRVOLFHV
RI :KROH *UDLQ EUHDG DERXW .FDOV HJJ FDO JUDPV RI SURWHLQ DQG D
VHUYLQJ RI OHDQ EUHDNIDVW PHDW R]V RI KDP RU &DQDGLDQ EDFRQ SUREDEO\ DERXW
JUDPV RI DEVRUEDEOH SURWHLQ DUH ILQH 7KHQ D 3KDVH OXQFK DQG GLQQHU SOXV D
SURWHLQVQDFNDW EHGWLPH <RX ZRQ
W JDLQ ZHLJKW RQ WKLV EXW \RX ZLOO VWRS ORVLQJ
ZHLJKW'LHWHUVZLOOUHFKDUJHWKHLUJO\FRJHQGXULQJWKLVSKDVH$WWKHHQGRIWKH
ZHHNVDUHJDLQRIWROEVRIZDWHUJO\FRJHQWKDWZDVORVWGXULQJWKHILUVWZHHNRI
WKHGLHWZLOORFFXU0DNHVXUH\RXSUHSDUHWKHPIRUWKLV([SODLQWKDWWKLVLV127
IDWDQGWKH\PD\SUREDEO\FRQWLQXHWRORVHLQFKHV
:KDW LV WKH WDUJHW QXPEHU RI FDORULHV JUDPV RI IDW SURWHLQ DQG
FDUERK\GUDWHV ZKHQ VRPHRQH LV RQ DQG HQYHORSHV UHVSHFWLYHO\"
7DNLQJLQWRFRQVLGHUDWLRQ WKHUH LV VRPH YDULDELOLW\ EHFDXVH SHRSOH KDYH
WKHLURZQPHDODWGLQQHUDQGFKRRVHGLIIHUHQWHQYHORSHVGXULQJWKHGD\
:HWDUJHWEHWZHHQDQG.FDOVSHUGD\RQ3KDVH7KHODWLWXGHLVGXHWR
WKH FKRLFHV WKH\ PDNH IRU WKH QRQ,GHDO PHDO ILOHW PLJQRQ ]XFFKLQL DQG \HOORZ
VTXDVKPD\KDYHPRUHFDORULHVWKDQDILOHWRIFRGDQGEURFFROL
NFDOJP DERXWJPRIIDWSHUGD\ZKLFKZRXOGEHDOLWWOHRYHUOEV
RI IDW SHU ZHHN ORVW WKLV ZHLJKW GRHVQ
W FRXQW WKH ZDWHU ORVW DV WKH JO\FRJHQ LV
GHSOHWHG6RRXUSURWRFROLVUHDOO\DKLJKIDWGLHW
,IDSHUVRQLVGRLQJHQYHORSHVSOXVDZKROHSURWHLQ´WKLVZRXOGEHDSSUR[LPDWHO\
JUDPVRISURWHLQFDOJP .FDOVIURPSURWHLQ
WHDVSRRQVRIROLYHRLODUHDSSUR[LPDWHO\.FDORUJPVRIIDW
7DNLQJILVKRLOFDSVXOHVWKH2PHJDDQGHVWLPDWLQJWKHIDWLQWKHZKROHSURWHLQ
ZHFDQSUREDEO\DGGDQRWKHUJPVRIIDWRU.FDOV
6RWKXVIDUZHKDYHFDORULHVIURPSURWHLQDQG.FDOIURPIDW
$GGWKHFXSVRIYHJJLHVDQGVDODGDQGWKHFDUERK\GUDWHVLQWKH,GHDOIRRGVZHJHW
DSSUR[LPDWHO\FDORULHVRUDERXWJUDPVRIFDUERK\GUDWHV
7KLV ZRXOG EH DERXW 3URWHLQ )DW DQG &DUERK\GUDWHV SDFNV ZKROHSURWHLQSHUGD\
,IZHDGGDQRWKHUHQYHORSHDQGWKHVHVKRXOGEHWKHGULQNVVRXSVRUSXGGLQJVWKH
ORFDUE IRRGV ZH DGG DERXW JPV RI SURWHLQ DQG DERXW JPV RI
&DUERK\GUDWHVRQDYHUDJH
6RSDFNVZKROHSURWHLQZRXOGEHDERXW
JPV3URWHLQ.FDOV
JPV&DUEV.FDO
JP)DW.FDO
253URWHLQ)DWDQG&DUEV
HQYHORSHVZKROHSURWHLQZRXOGEHDERXW
JPV3URWHLQ.FDO
JPV&DUEV.FDO
JPV)DW.FDO
253URWHLQ)DWDQG&DUERK\GUDWHV
1RZOHW
VJREDFNWRWKHVWDQGDUGSURWRFROHQYHORSHVZKROHSURWHLQ
7RWDOFDORULHV ,IZHILJXUHWKHEDVDOPHWDEROLFUDWHQRUPDOGDLO\DFWLYLW\QRH[HUFLVHWREH
.FDOZHFDQFDOFXODWHKRZPXFKERG\IDWLVXVHGIRUIXHO .FDO
JPVRIIDWIURPIRRGJPVIURPWKHERG\ JP)DW.FDO
JP3UR.FDO
JP&DUE.FDO
25)DW3URWHLQ&DUEV
,VLWQRUPDOWRH[SHULHQFHQDXVHDZLWKGXULQJWKHSURWRFRO"
6RPHSHRSOHGRH[SHULHQFHQDXVHD7RUHPHG\WKLVWKH\VKRXOGKDYHIDPLOLDUIRRG
IRU EUHDNIDVW HJJV DQG VRPH OHDQ KDP &DQDGLDQ EDFRQ QR WRDVW RI FRXUVH
$OVRFRQVXPHRQO\RIDVKDNHDWDWLPHGULQNWKHRWKHUKDOIDQKRXURUVRODWHU
,IWKLVGRHVQ
WKHOSRIIHUWKH$OWHUQDWLYH3URWRFROIRURUZHHNV7KLVZLOOHDVHWKH
GLHWHU¶VRIIWKHVXJDU
:K\ LV LW LPSRUWDQW IRU GLHWHUV WR JR WKURXJK DOO IRXU SKDVHV DGGLQJ IRRGV
VORZO\EDFNLQWRWKHLUGLHW"
:H LQWURGXFH PRUH UHDO IRRG LQ 3KDVH WR KHOS EULQJ WKH JXW GLJHVWLYH SURFHVV
EDFNRQOLQH,IZHMXVWMXPSLQWRHDWLQJUHDOPHDOVDGD\DIWHU3KDVHPDQ\
SHRSOHZLOOJHWEORDWHGFUDPSVHWF,Q3KDVHZHLQWURGXFHFRPSOH[FDUERK\GUDWHV
LQWKHPRUQLQJPHDORQO\WRKHOSEULQJWKHSDQFUHDVEDFNRQOLQH,IZHVXGGHQO\
DGG FDUERK\GUDWHV DOWKRXJK WKH GD\ WKH SDQFUHDV ZLOO EH VKRFNHG DQG SUREDEO\
RYHUSURGXFHLQVXOLQOLNHLWZDVEHIRUHWKHSURWRFRO6RZLWKWKHSDQFUHDVZHZDQW
WRVORZO\ OHW LW JHWXVHGWR SURGXFLQJWKHULJKW DPRXQW RI LQVXOLQ LQUHVSRQVHWRWKH
FDUERK\GUDWHVZHHDW,OLNHQWKLVWRDFRXUVHRISUHGQLVRQH:HNQRZLIZHJLYHD
SDWLHQWSUHGQLVRQHDVWHURLGDODQWLLQIODPPDWRU\IRURYHUZHHNVWKHDGUHQDOVZLOO
VWRSSURGXFLQJFRUWLVRO7KHUHIRUHLIZHDEUXSWO\VWRSWKHSUHGQLVRQHWKHSDWLHQWZLOO
JRWKURXJKDFULVLVDVWKHDGUHQDOVQHHGWLPHWRJHWWKHSURGXFWLRQRIFRUWLVROEDFN
RQOLQH7KHUHIRUHZHDOZD\VWDSHUWKHGRVHGRZQVORZO\WRJLYHWKHDGUHQDOVWLPH
WR EHJLQ SURGXFWLRQ RI WKHVH QHFHVVDU\ VXEVWDQFHV ZH QHYHU ZDQW WR VKRFN WKH
V\VWHP(DV\GRHVLW
:KDWLVWKHGLIIHUHQFHEHWZHHQDSSOHFLGHUYLQHJDUDQGULFHYLQHJDU"
%RWKRIWKHPDUHILQHRQWKHSURWRFRO,W¶VDPDWWHURIWDVWHPRUHWKDQDQ\WKLQJHOVH
$SSOH&LGHU9LQHJDUKDVPRUHDONDOLQHPLQHUDOVVRLWPLJKWEHSUHIHUDEOH
0\ GLHWHU VD\V KH¶V QRW ORRVLQJ ZHLJKW DV KH VKRXOG +H VWDUWHG DW OEV
DQGDIWHUZHHNVKHORVWOEV$IWHUWKHVWZHHNKHORVWOEV
+HLVORRVLQJDERXWOEVSHUZHHN,IKHVWD\VRQWKHSURJUDPIRUD\HDUWKDW
VRYHU
OEVDQGWKDW
VORRVLQJZD\IDVWHUWKDQKHJDLQHGLW2EHVHSHRSOHKDYHPRUHIDW
SHU VTXDUH LQFK RI VXUIDFH DUHD $Q REHVHPDQ ZLWK DUPV ZLOO KDYH PRUH IDW
FDORULHVVWRUHGWKDQDSHUVRQZLWKGLDPHWHUDUPV7KLVPHDQVWKHELJJX\ZLOO
VHHDVORZHUGHFUHDVHLQGLDPHWHUEHFDXVHWKHUH
VPRUHIDWSHULQFK,W
VOLNHDUROO
RISDSHUWRZHOVLI\RXVWDUWSXOOLQJVKHHWVRIIDQHZUROODW D VWHDG\ UDWH WKH
GLDPHWHURIWKHUROOZLOOGHFUHDVHVORZO\DWILUVWDQGWKHQDFFHOHUDWHDVWKHGLDPHWHU
GHFUHDVHV ,I KLV ZHLJKW ORVV GURSV WR SRXQGV RU OHVV SHU ZHHN PDNH VXUH \RX
FKHFN WKH IRRG GLDU\ IRU DQ\ KLGGHQ FDUERK\GUDWHV <RX PD\ DOVR ZDQW WR SXW
KLP RQ D 9(5< VWULFW GLHW IRU D ZHHN RU WZR 1R 5HVWULFWHG )RRGV RQO\ VKDNHV
SXGGLQJVVRXSVDQGRPHOHWDQGQRUHVWULFWHGYHJHWDEOHV
:K\GRZHDVN'LHWHUVLIWKH\DUHFROG"
7KLV PD\ LQGLFDWH K\SRWK\URLGLVP :H VKRXOG DVN 'LHWHUV :KHQ ZDV WKH ODVW WLPH
\RXU'RFWRURUGHUHGDWK\URLGSDQHO",IWKH\IDLOWRORVHWKHZHLJKWZHH[SHFWZKHQ
WKH\IROORZWKHSURWRFROLQRWKHUZRUGVLIWKH\RQO\ORVHRQDYHUDJHOEVZHHN JR
EDFN WR WKH KHDOWK SURILOH DQG VHH KRZ WKH\ DQVZHUHG WKLV TXHVWLRQ 3HUKDSV WKH\
ZLOOQHHGWK\URLGKRUPRQHUHSODFHPHQWIRUDVKRUWSHULRGRIWLPH
,KDYHD'LHWHUWKDWKDVEHHQRQWKHSURWRFROIRURYHUPRQWKVDQGKDVORVW
DERXWOEV)RUWKHODVWZHHNVVKHKDVKDGQRZHLJKWORVV6KHLVDOVRRQ
KHUPHQVWUXDOF\FOHDJDLQZHHNVQRZEHIRUHLWZDV
6KH LV KDYLQJ PRUH IUHTXHQW SHULRGV WKHQ LW ZRXOG VWDQG WR UHDVRQ VKH ZLOO JDLQ
ZDWHU ZHLJKW RQH ZHHN SULRU WR KHU PHQVHV $OVR FKHFN KHU IRRG GLDU\ D ORW RI
GLHWHUV JHW D OLWWOH VODFN ZLWK WKLV RQFH WKH\ DUH D IHZ PRQWKV LQWR WKH SURJUDP
&RQWHPSODWH D ZHHNRUWZRRIDWKH SURWRFRO ZLWKWKH³URFNHW)XHO´IRRGVRQO\QR
UHVWULFWHGIRRGVDQGQRUHVWULFWHGYHJHWDEOHV
, KDYH D SDWLHQW ZKR LV DOOHUJLF WR HJJV ZKHDW DQG GDLU\ :KLFK RI RXU
IRRGVFDQ,VXJJHVWKLP"
,I D SHUVRQ VD\V WKH\ DUH DOOHUJLF WR VR\ '2 127 RIIHU WKHP DQ\ IRRGV ZLWK VR\
SURWHLQ 6DPH ZLWK DQ HJJ DOOHUJ\ QR IRRGV ZLWK HJJ SURWHLQ DOEXPLQ <RX FDQ
UHDGWKHER[HVWRKDYHPRUHGHWDLOV$GDLU\LQWROHUDQFHLH/DFWRVH,QWROHUDQFHLV
127DQDOOHUJ\LQWKHWUXHVHQVHRIWKHZRUGWKH\DUHPHUHO\ODFNLQJLQWKHHQ]\PH
ODFWDVH DQG LI WKH\ LQJHVW ZKROH PLON SURGXFWV WKH\ FDQ JHW JDV EORDWLQJ DQG
FUDPSLQJ QRW D OLIH WKUHDWHQLQJ DQDSK\ODFWLF UHDFWLRQ 7KLV LV XVXDOO\ FRUUHFWHG E\
JLYLQJ ODFWDVH LH 'DLU\HVH RU /DFW$LG FDSOHWV ZLWK WKH IRRG 3HRSOH ZLWK
ODFWRVH LQWROHUDQFH XVXDOO\ SUREDEO\ RI WKH WLPH &$1 XVH RXU ZKH\ LVRODWH
SURGXFWV DV WKH\ FRQWDLQ RQO\ WUDFHV RI ODFWRVH ZKLFK LV SUREDEO\ QRW
HQRXJKWRFDXVHDQ\SUREOHP
3HRSOHZLWKDWUXHPLONDOOHUJ\DUHXVXDOO\DOOHUJLFWRFDVHLQWKHRWKHUSURWHLQIRXQG
LQPLONDQGQRWWKHZKH\IUDFWLRQ:KDWZHGLGZDVWRWHOOWKHPWR75<DWLQ\ELWRI
RXU ZKH\ LVRODWH SURGXFWV JLYH WKHP D WHDVSRRQIXO RU KDOI D WHDVSRRQIXO RI WKH
3HDFK 0DQJR DQG VHH LI WKH\ H[SHULHQFH D UHDFWLRQ :H
YH QHYHU VHHQ D SUREOHP
ZLWK WKLV %87 UHPHPEHU ZH GLG WKLV LQ D SK\VLFLDQ
V RIILFH DQG KDG DQ HSLSHQ
UHDG\,ZRXOGQRWDGYRFDWHQRQSUDFWLWLRQHUVWRGRWKLV%DVLFDOO\LIWKH\VD\
WKH\
UH DOOHUJLF WR D IRRG HJJ PLON VR\ MXVW VWHHU WKHP WR WKH IRRGV WKDW GRQ
W
KDYHWKHVH LQJUHGLHQWV LQWKHP $OVR GRQRW KDYHWKHPWDNH RXUFROODJHQ SURGXFWV
PRUH WKDQ RQFH D GD\ FROODJHQ LV QRW D FRPSOHWH SURWHLQ DQG ZH GR QRW ZDQW WR
FDXVHDQ\QXWULWLRQDOGHILFLHQFLHV
2XU IRRGV FRQWDLQ QR FKHPLFDO SUHVHUYDWLYHV DQG DUH DPRQJ WKH FOHDQHVW LQ WKH
LQGXVWU\VRLQWKDWUHJDUGWKH\DUHK\SRDOOHUJHQLF-XVWXVHJRRGMXGJPHQWDQG
ZKHQLQGRXEWGRQ
WGRLW
:KDWFDXVHVWKHEORDWHGIHHOLQJRIWHQDVVRFLDWHGZLWKHDWLQJRXUSURWHLQV"
%ORDWHGIHHOLQJPD\FRPHIURPQRWKDYLQJDOOWKHDSSURSULDWHHQ]\PHVDYDLODEOHIRU
FRPSOHWH GLJHVWLRQ WKLV LV SDUWLFXODUO\ WUXH LI WKH\ ZHUHQ
W JHWWLQJ HQRXJK SURWHLQ GD\ SULRU WR WKH SURWRFRO 5HFRPPHQG WKH\ VXSSOHPHQW ZLWK RXU HQ]\PHV ZLWK
HDFKPHDO$VWKH\FRQWLQXHRQWKHSURJUDPWKHLUERGLHVZLOOVWDUWWRSURGXFHPRUH
RIWKHSURWHDVHVHQ]\PHVWRGLJHVWSURWHLQ$OVRDVNLIWKH\DUHODFWRVHLQWROHUDQW
VKRXOGWKDWEHWKHFDVHDYRLGRXUIRRGVPDGHZLWKZKROHPLONSURWHLQZKH\LVRODWHV
DUH2.$GGLQJDODFWDVHVXSSOHPHQW'DLU\(]HRU/DFWDLGLVRIWHQKHOSIXOZLWK
WKHVHIRONV
$IWHUORRVLQJOEVP\'LHWHUKDVQ¶WORVWDQ\WKLQJHOVH:KDW¶VJRLQJRQ"
$IWHU ORVLQJ OEV KDYLQJ EHHQ RQ WKH SURWRFRO IRU D ZKLOH WKH\ DUH SUREDEO\
JDLQLQJ VRPH PXVFOHDWWKLV SRLQWZKLFK ZRXOG RIIVHWWKH VFDOHZHLJKW$OVRFKHFN
WKHIRRGGLDU\FDUHIXOO\PD\EHWKH\KDYHQ
WEHHQILOOLQJLWRXWZHHNO\DWWKLVSRLQW
/RRN IRU UHVWULFWHG IRRGV SHU GD\ 7HOO WKHP OLWWOH FKHDWV ZLOO UHSOHQLVK VRPH
JO\FRJHQDQGWKH\ZLOOJDLQZDWHUZHLJKW :H DOVR VXJJHVW ZHHN RI %RRW &DPS
HQYHORSHVRISURWHLQ5RFNHW)XHORQO\VRXSV GULQNV DQG SXGGLQJV 2QHIRU
EUHDNIDVWRQHIRUOXQFKIRUGLQQHU12:+2/()22'3527(,1DQGDWEHGWLPH
,V WKHUH VRPH JXLGDQFH DV WR NQRZ ZKHQ WR VKLIW FHUWDLQ NLQGV RI
LQGLYLGXDOVWRSHUKDSVDQDOWHUQDWLYHGLHWSODQWRSURYLGHWKHIHZDGGLWLRQDO
FDUERK\GUDWHV WKDW PD\ EH QHFHVVDU\ WR VRPH LQGLYLGXDOV ZKR DUH QRW
W\SLFDOO\ SK\VLFDOO\ DFWLYH EXW ZKR LV PHQWDOO\ DFWLYH WR SOHDVH WKH
DYDLODEOHJO\FRJHQ"
2XU SURWRFRO SURYLGHV HQRXJK FDUERK\GUDWHV IRU WKH EUDLQ DQG RWKHU JOXFRVH
GHSHQGDQW WLVVXHV 7KH IX]]\ WKLQNLQJ EUDLQ IRJ LV PRVWO\ OLNHO\ GXH WR ORZ
VRGLXPOHYHOVUHVXOWLQJLQORZ%32QHKDOIWRRQHWKLUGRIDWHDVSRRQIXORIVHDVDOW
GLVVROYHG LQ R] ZDWHU TXLFNO\ UHFWLILHV WKLV 7KH RQO\ WLPH D SHUVRQ ZRXOG UHDOO\
JHW K\SRJO\FHPLF LV LI WKH\ H[HUFLVH KHDYLO\ GXULQJ WKH ILUVW WR ZHHNV RI WKH
SURJUDP 25 WKH\ DUH RQ K\SRJO\FHPLF DJHQWV RU LQVXOLQ DQG KDYH WR KDYH WKHLU
GRVHV FXW EDFN RU GLVFRQWLQXHG $ TXLFN ZD\ WR GLIIHUHQWLDWH WKLV LV WR KDYH WKH
SDWLHQWOLHGRZQZLWKKLVKHUIHHWHOHYDWHG,IWKH\IHHOEHWWHUGRLQJWKLVLW
VXVXDOO\
WKHVRGLXPORZ%3FDXVLQJWKHSUREOHPLIWKH\GRQ
WIHHOEHWWHUWKHQLW
VSRVVLEO\
ORZEORRGVXJDUEXWWKH\ZLOOXVXDOO\IHHOVKDN\DOVRLIWKLVZHUHWKHFDVH
$UHWKH(GDPDPHVR\EHDQV"
7KH (GDPDPH DUH VR\ EHDQV 7KH\ FRPH HLWKHU DV IUHVK XVXDOO\ VHUYHG VWHDPHG
ZLWK VDOW LQ -DSDQHVH UHVWDXUDQWV RU GULHG DQG IODYRUHG XVXDOO\ ZDVDEL 7KH\ GR
FRQWDLQ VRPH FDUERK\GUDWHV DV DOO OHJXPHV GR DQG , ZRXOG XVH WKLV 9(5<
63$55,1*/< RQ 3KDVHV DQG 7KH\
UH OLNH QXWV \RX FDQ FRQVXPH D ORW YHU\
TXLFNO\DQGWKHFDUERK\GUDWHVZRXOGDGGXS7KH\ZRXOGEHILQHIRUSKDVHVDQG WKRXJK
,KDYHD'LHWHUFRPSODLQLQJDERXWORZHUEDFNSDLQVWDWHVLW¶VQRWOLNHEDFN
SDLQKHIHHOVKLVNLGQH\V,VLWEHFDXVHKHLVHDWLQJWRRPXFKSURWHLQ"
5HPHPEHU RXU SURWRFRO SURYLGHV RQO\ WKH 0,1,080 GDLO\ UHTXLUHPHQWV DV IDU DV
SURWHLQ JR ,I \RX WDNH LQ OHVV WKHQ \RX DUH QRW JHWWLQJ HQRXJK 3DLQ LQ WKH EDFN
DUHDFRXOGEHDQXPEHURIWKLQJVPXVFXODU87,NLGQH\VWRQHHWFEXWLW
VGHILQLWHO\
QRW IURP WRR PXFK SURWHLQ 5HIHU WKH GLHWHU WR KLVKHU SULPDU\ FDUH SK\VLFLDQ WR
UXOHRXWDQ\DFXWHPHGLFDOFRQGLWLRQ
0\'LHWHULVQRWORRVLQJDQ\ZHLJKW:KDW¶VZURQJ"
7KHELJJHVWUHDVRQVZK\GLHWHUVGRQ
WORVHZHLJKWDUHFKHDWLQJLQWHQWLRQDOO\
RU E\ PLVWDNH OLNH KDYLQJ UHVWULFWHG IRRGV SHU GD\LH RDWPHDO IRU EUHDNIDVW
DQGDEDU EHIRUH EHG 7KH RWKHU UHDVRQ LV QRW KDYLQJ D JRRG ERZHO PRYHPHQW
SHU GD\ 7KH\ FDQ VWRUH XS ZDUGV RI OEV LQ WKH FRORQ 3OHDVH FKHFN WKH ZHHNO\
PHDO GLDU\ DQG PDNH VXUH KHVKH
V QRW GRXEOLQJ XS RQ WKH WUHDWV$OVR DVN DERXW
WKHLUERZHOKDELWV
3OHDVHUHIHUWR³,UUHJXODU:HLJKW/RVV´GRFXPHQW
,VWKHJXP;HQDWRORQO\DYDLODEOHDWKHDOWKIRRGVWRUHVSHUPLWWHG"
;\OLWRO *XP ;\OL&KHZ DQG RWKHU EUDQGV LV JHQHUDOO\ 2. ,),7 ,6
127&217,18$//<&+(:('$//'$</21* 6XJDU DOFRKROV DUH QRW FRPSOHWHO\
DEVRUEHG\RXJHWDERXWWKHFDUERK\GUDWHVLWVD\VRQWKHODEHO6RPHWKLQJZLWK
JUDPV RI VXJDU DOFRKROV ZRXOG JLYH \RX DERXW QHW FDUERK\GUDWHV ,I \RX
FKHZ SLHFH DIWHU SLHFH WKDW ZLOO DGG XS,I VRPHWKLQJ DSSHDUV OLNH LW ZRXOG EH
DSSURSULDWHRQWKHSURWRFROWU\LW,102'(5$7,21WKHQFKHFNWKHZHLJKWORVVWKH
IROORZLQJ ZHHN ,I WKH UDWH RI ZHLJKW ORVV LV QRW FRQWLQXLQJ WKHQ VWRS LW FRPSOHWHO\
XQWLO
3KDVH
:KDW LV WKH :KH\ 3URWHLQ VRXUFH" ,V LW IURP FRZV ZKLFK DUH QRW JLYHQ
%RYLQH*URZWK+RUPRQHV%*+DQGDUHWKHFRZVJUDVVIHGRUJDQLF"
7KH PLON XVHG LQ SURFHVVLQJ RXU ZKH\ LVRODWHV FRPHV IURP FRZV UDLVHG RQ VPDOO
(XURSHDQIDUPVJUDVVIHGDQGZLWKQRKRUPRQHV:HFDQQRWFODLPRUJDQLFDVWKH
SURFHVVRIH[WUDFWLQJWKHLVRODWHVSUHFOXGHVWKLVQRPHQFODWXUH7KDWEHLQJVDLGWKH
SHUVRQ PXVW XQGHUVWDQG WKDW DQ LVRODWH LV MXVW WKH SXUH SURWHLQ IUDFWLRQV RI WKH
WRWDO ZKH\ WKHVH DUH LVVXHG ZLWK D &HUWLILFDWH RI $QDO\VLV VKRZLQJ DQ\ WUDFHV RI
KHDY\ PHWDOV KRUPRQHV SHVWLFLGHV RU DQ\ RWKHU FKHPLFDO 7KH ORW LV
3/$&(',148$5$17,1( LH 1RW HYHQ EURXJKW LQWR WKH ODE XQWLO ZH GR RXU RZQ
PDVV VSHF DVVD\ RI WKH SURGXFW ,I RXU RQ DQDO\VLV GRHV QRW MLYH ZLWK WKH
&HUWLILFDWH RI $QDO\VLV IURP WKH (XURSHDQ FRPSDQ\ WKH SURGXFW LV UHMHFWHG DQG
UHWXUQHG
0\ SDWLHQW LV KDYLQJ D KDUG WLPH HDWLQJ DOO RI KLV YHJHWDEOHV +H LV RQO\
HDWLQJDERXWFXSSHUGD\EXWLVIHHOLQJILQH,VWKHUHDQ\WKLQJZURQJZLWK
WKDW"
7KH SUREOHP LV KH ZLOO QRW JHW HQRXJK ILEHU DQG ZLOO OLNHO\ EH GHILFLHQW LQ PLQHUDOV
7KLV PD\ QRW FDXVH SUREOHPV LI KH
V LQ JRRG KHDOWK EXW FRXOG SRVVLEO\ FDXVH DQ
DUUK\WKPLDLQSRRUHUSDWLHQWV$OVRLWKHOSVPDLQWDLQUHJXODULW\
,KDYHDGLHWHULQ3KDVHZKRZRUNVIRUDGHOLYHU\FRPSDQ\+HVD\VKH
KDV WR KDYH VRPH VRUW RI HOHFWURO\WHV GXULQJ WKH VXPPHU DQG KH GRHV QRW
ZDQW*DWRUDGHRUDQ\RIWKRVHW\SHVRIGULQNV:KDWFDQ,VXJJHVWIRUKLP
RQWKHWUXFN"+HWHOOVPHKHLVDOZD\VLQDKHDY\VZHDWHU
+HFDQXVH3HGLDO\WHFRPHVDVDOLWHUERWWOHDQG GLOXWH LWZLWKVSULQJZDWHUWR
OLWHUV LH MXVW DGG D OLWHU RU TXDUW RI VSULQJ ZDWHU +H FDQ GULQN D OLWHU RI WKLV
VROXWLRQZKHQKHZRUNVEXWWKHGLOXWHGPL[WXUHZLOO SURYLGHDERXW JRI VXJDU
VRLIKH
VVWLOORQ3KDVHQR³UHVWULFWHGIRRGV´$Q\RWKHUIOXLGVKRXOGEHZDWHURU
SXWDOLWWOHVDOWLQZDWHUDQGDGGDOLWWOHSHDFKPDQJRIRUIODYRU
,VWKHVXJDUIUHHZLQHDOORZHGRQWKH'LHW"
7KLVZRXOGEH2.IRU3KDVHEXWQRWIRU3KDVHVEHFDXVHDOFRKROKDVFDORULHV
.FDO SHU JUDP EXW PRUH LPSRUWDQWO\ LV XOWLPDWHO\ FRQYHUWHG WR D PROHFXOH RI
JO\FHURO *O\FHURO LV RQH RI WKH PDMRU FRPSRQHQWV RI WULJO\FHULGHV IDW WKXV LW
SURPRWHVWKHSURGXFWLRQRIIDW
,I WDNLQJ WKH 2PHJD ,,,
V RQ RXU ZHLJKW ORVV SURWRFRO GRHV WKH 'LHWHU VWLOO
QHHGWKHWRWHDVSRRQVRIRLO",IVRZK\"
7KHDQVZHULV\HV7KHROLYHRLOZLOOSURYLGHWKHVXEVWUDWHVIRUEXLOGLQJXSWKHLU+'/
0RVW GLHWV ZLOO GURS 7RWDO FKROHVWHURO /'/$1' +'/ LI WKH +'/ GURSV WRR
FDUGLRYDVFXODUEHQHILWVPD\QRWEHUHDOL]HG.HHSLQJWKHROLYHRLOLQHQVXUHVJRRG
+'/OHYHOVSOXVLVDOVRQHFHVVDU\IRUSURSHUJDOOEODGGHUIXQFWLRQ
,VWKHUHDQ\LVVXHZLWK'LHWHUZDQWLQJWRVSOLWXSWKHLUVWRUHERXJKWSURWHLQ
HJ ILVK FKLFNHQ HWFDQG KDYH R] DW ERWK OXQFK DQG GLQQHU LQ
WKHLUVDODGDORQJZLWKDQ,GHDO3URWHLQGULQN"
1R WKDW VKRXOG EH ILQH +RZHYHU RQ 3KDVH WKH\ PXVW FRQVXPH DOO WKH
FDUERK\GUDWHV ZH UHLQWURGXFH LQWR WKH SURWRFRO DW WKH PRUQLQJ PHDO ,Q RWKHU
ZRUGV WKH\ FDQ
W KDYH WRDVW DW EUHDNIDVW DQG VDYH D IUXLW VHUYLQJ IRU OXQFK RU D
PLGGD\VQDFN:HRQO\ZDQWWRVSLNHWKHLQVXOLQRQFHDGD\
,GHDO3URWHLQ:HLJKW/RVV0HWKRG
)$4¶60HGLFDO
,V WKH ,GHDO 3URWHLQ :HLJKW /RVV 0HWKRG VDIH IRU SHRSOH RQ EORRG SUHVVXUH
DQGIOXLGPHGLFDWLRQ"
<HV3HRSOHZLWKKLJKEORRGSUHVVXUHDUHRIWHQRYHUZHLJKWDQGZLOOGHILQLWHO\EHQHILW
IURP WKH SURWRFRO +RZHYHU WKH\ ZLOO KDYH WR EH PLQGIXO RI WKHLU VDOW LQWDNH DV
SUHVFULEHGE\WKHLUSK\VLFLDQ
,VWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRGVDIHIRU'LDEHWLFV7\SH,DQG7\SH
,,DVZHOODVIRUK\SRJO\FHPLFORZEORRGVXJDU"
'LDEHWLFVKDYHVRPXFKWRJDLQIURPRXUSURWRFROEHFDXVHUHJXODWLQJJO\FHPLDLVDW
WKH YHU\ KHDUW RI RXU PHWKRG :KLOH ZH FDQQRW UHYHUVH 7\SH , 'LDEHWHV ZH FDQ
KHOS WKRVH DIIOLFWHG WR ORVH ZHLJKW +RZHYHU RXU ,GHDO 3URWHLQ :HLJKW /RVV 0HWKRG
FDQ KHOS UHYHUVH 7\SH ,, 'LDEHWHV RU DW WKH YHU\ OHDVW GLPLQLVK WKH FRQGLWLRQ¶V
YXOQHUDELOLWLHV3HRSOHZKRVXIIHUIURPK\SRJO\FHPLDFDQDOVRIROORZRXUZHLJKWORVV
PHWKRGRURXUDOWHUQDWLYHSODQ
6WLOOGLDEHWLFVQHHGWREHSDUWLFXODUO\YLJLODQWRQRXUSURWRFRO,QWKHILUVWIHZZHHNV
SHRSOHVXIIHULQJIURPK\SRJO\FHPLDVKRXOGQRWH[HUFLVHDVPXFKDVXVXDOLQRUGHUWR
IDFLOLWDWHWKHUHHGXFDWLRQRIWKHLUSDQFUHDVDQGJLYHWKHLUERG\DFKDQFHWRUHDGMXVW
WR LWV QHZ HDWLQJ KDELWV $V ZHOO WKH\ VKRXOG VWRFN XS RQ WKH ,GHDO 3URWHLQ 3HDFK
0DQJR GULQN LQ FDVH WKH\ ILQG WKHPVHOYHV LQ WKH PLGVW RI D ORZ EORRG VXJDU FULVLV
ZKLFK LV SUHGLFWDEOH LQ WKHLU FDVH :KHQ LW KDSSHQV WKH\ VKRXOG VLW GRZQ EUHDWKH
GHHSO\DQGUHDFKIRUDQ,GHDO3URWHLQ3HDFK0DQJRGULQN,WZLOOFDOPWKHPLQVWDQWO\
7KH\ PXVW EH FRQILGHQW LQ WKH NQRZOHGJH WKDW WKHLU ERG\ PRUH VSHFLILFDOO\ WKHLU
SDQFUHDVZLOOLQWLPH VRRQUHDGMXVW LWVHOIWR IXQFWLRQDV LWZDVRULJLQDOO\ LQWHQGHG
E\QDWXUH
,IRQPHGLFDWLRQLVWKH,GHDO3URWHLQ:HLJKW/RVV0HWKRGVDIH"
2XU SURWRFRO LV PRVW OLNHO\ VDIH EXW VWLOO ZH UHFRPPHQG WKDW \RXU SK\VLFLDQ LV
FRQVXOWDQW SULRU WR EHJLQQLQJ 5HPHPEHU ,GHDO 3URWHLQ IRRGV DUH UHDO IRRGV GUXJ
IUHH ZLWK QR VWLPXODQWV (DFK ,GHDO 3URWHLQ HQYHORSH LV WKH HTXLYDOHQW QXWULWLRQDOO\
WRDFKLFNHQEUHDVWDVPDOOILOHWPLJQRQRUDILOHWRIILVK
,V WKH ,GHDO 3URWHLQ :HLJKW /RVV 0HWKRG VDIH IRU FKLOGUHQ DQG ZKDW LV WKH
PLQLPXPDJHIRUIROORZLQJWKHSURWRFRO"
*URZLQJ FKLOGUHQ VKRXOG QRW EH RQ DQ\ GLHW ,I D SDUHQW ZDQWV WR UHSODFH KLV FKLOG¶V
XQKHDOWK\VQDFNVZLWK KHDOWK\ IRRGV LQFOXGLQJ,GHDO3URWHLQIRRGV WKH SDUHQWPXVW
HQVXUHWKDWWKHFKLOGXQGHUVWDQGVWKHUHDVRQVZK\WKH\DUHEHLQJGHSULYHGRIWKHVH
IRRGV ,IQRWWKHFKLOG PD\UHDFWDGYHUVHO\ E\ZDQWLQJWKRVHXQKHDOWK\ IRRGVHYHQ
PRUHWKDQEHIRUH
,VWKHUHDQ\SUREOHPZLWKSXWWLQJSDWLHQWVRQWKH,GHDO3URWHLQ:HLJKW/RVV
0HWKRGLIWKH\KDYH*RXW"
7KHUH LV QR SUREOHP ZLWK D SHUVRQ EHLQJ RQ WKH SURWRFRO ZKR KDV KDG D KLVWRU\ RI
JRXW+LJKXULFDFLGOHYHOVDUHDSDUWRI6\QGURPH;DQGWKHSURJUDPZLOOKHOSWKHP
ORQJ WHUP $V VWDWHG LQ WKH ([SODQDWLRQ RI WKH +HDOWK 3URILOH LI D SDWLHQW KDV D
KLVWRU\RIJRXWLWZRXOGEHSUXGHQWIRUWKHGRFWRU0'RU'2WRSXWWKHPRQDGUXJ
$OORSXULQRO PJV RQFH D GD\ IRU DW OHDVW WKH ILUVW PRQWK RI WKH SURJUDP :H
KDYHRQO\UHFRUGHGFDVHVLQWZRDQGDKDOI\HDUVWKDWJRLQJRQWKHSURWRFROPD\
KDYH SUHFLSLWDWHGDJRXWIODUHXS7KHUHIRUHLIWKHGRFVHPSOR\WKLVVWUDWHJ\LW
PD\ SUHYHQW D GLHWHU IURP TXLWWLQJ WKH SURJUDP EHFDXVH RI D SHUFHLYHG QHJDWLYH
HIIHFW EHIRUH KH RU VKH FDQ JHW WKH IXOO EHQHILW RI RXU SURJUDP $OORSXULQRO LV YHU\
LQH[SHQVLYHDQGLVYHU\ZHOOWROHUDWHGDQGKDVDORQJKLVWRU\RIVDIHW\DQGHIILFDF\,
WKLQN ZKDW PD\ KDYH KDSSHQHG ZLWK WKH QRWHG FDVHV WKH\ ZHUH JRLQJ WR KDYH D
IODUHXS DQ\ZD\ SHUKDSV LQFUHDVLQJ SURWHLQ LQ WKH GLHWVXGGHQO\ PD\ KDYH
DJJUDYDWHG LW RU PD\EH QRW ,Q DQ\ D FDVH XVLQJ $OORSXULQRO DV D SUHHPSWLYH
PHDVXUHZRXOGEHSUXGHQW
+RZZRXOGWKHVHDVDOWDQGVXSSOHPHQWVDIIHFW D'LHWHUWKDWLVELSRODUDQG
LVRQ/LWKLXP"
/LWKLXP DQG VRGLXP FKHPLFDOO\ YHU\ VLPLODU DIIHFW HDFK RWKHU LQ DQ LQYHUVH
PDQQHU7KDWLVDV\RXLQFUHDVH\RXUVRGLXPLQWDNH\RXUOLWKLXPOHYHOVZLOOGHFUHDVH
DQG LI \RX FXW GRZQ RQ VDOW \RXU OLWKLXP OHYHOV FRXOG FUHHS XS /LWKLXP
XQIRUWXQDWHO\ KDV D QDUURZ WKHUDSHXWLF LQGH[ PHDQLQJ WKH EORRG OHYHO KDV WR EH
MXVWULJKW7RROLWWOHDQGWKHUHLVQREHQHILWWRWKHSDWLHQW7RRPXFKDQGLWFDQEH
YHU\ WR[LF XVXDOO\ QDXVHD LV WKH ILUVW V\PSWRP RI WRR KLJK OHYHO 7KH RQO\ UHDOO\
JRRGZD\WRPRQLWRUWKLVLVGRDOLWKLXPEORRGOHYHO4XHVWRI/DE&RUSURXWLQHO\GR
WKHVH 6WDUW WKH GLHWHU RQ WKH SURJUDP DQG GUDZ D OLWKLXP OHYHO DW DERXW WKUHH
ZHHNV 7HOO KH RU VKH WR NHHS WUDFN RI WKH VDOW WKH\ DUH XVLQJ ,I WKH EORRG OHYHO
FRPHVEDFNDOLWWOHORZWHOOWKHPWREDFNRIIRQWKHVDOWDWDG,ILWFRPHVEDFND
OLWWOH KLJK WHOO WKHP WR XVH PRUH VDOW +RSHIXOO\ LW ZRQ
W EH D ELJ GHDO EXW DW OHDVW
ZH
UHZDWFKLQJWKLQJV,WLVUHFRPPHQGHGWRUHSHDWWKHWHVWLQDPRQWK
'XULQJWKHILUVW7:2:((.6RIWKHSURJUDPWKHJO\FRJHQVWRUHVKDYHEHHQGHSOHWHG
DQGWKHGLHWHULVFRQVXPLQJRQO\WKHEDUHVWRIQHFHVVDU\FDUERK\GUDWHVIRUWKHEUDLQ
DGUHQDOPHGXOODQXFOHDWHGEORRGFHOOVDQGDFRXSOHRIRWKHUFHOOVWKDW&$1127XVH
NHWRQLFERGLHVDVDIXHOVRXUFHWKH\0867KDYHJOXFRVH
&DQ *DVWULF E\SDVV/DSEDQG SDWLHQWV JR RQ WKH ,GHDO 3URWHLQ :HLJKW /RVV
0HWKRG"
7KHSURWRFROLVILQHIRUJDVWULFE\SDVVODSEDQGSDWLHQWVERWKIRUORVLQJZHLJKWDQG
WR SURYLGHD JUHDW VRXUFH RI SURWHLQ LQ D YHU\ VPDOOYROXPH RIIRRG /DSODQGHUV ZLOO
GRZHOOZLWKWKDW
,VWKHSURWRFROVDIHIRUDSRVWFKHPREUHDVWFDQFHUVXUYLYRU"
<HV KRZHYHU ZH ZRXOG UHFRPPHQG WKH GLHWHU JHW DSSURYDO IURP KHU SULPDU\ FDUH
0' (VWURJHQ OHYHOV FDQ IOXFWXDWH DQG ZH GRQ
W ZDQW WR VWLPXODWH D KRUPRQH
UHFHSWRUSRVLWLYHFDQFHU
,ZLOOKDYHDSDWLHQWWKDWKDGDGRXEOHPDVWHFWRP\VHYHUDO\HDUVDJR:KDW
LV WKH UHFRPPHQGDWLRQ IRU WKRVH LQ UHPLVVLRQ IURP HVWURJHQ LQGXFHG
FDQFHUV"
7KH FDQFHU LVVXH LV WKLV DVN KHU LI KHU WXPRU ZDV DQ HVWURJHQ UHFHSWRU SRVLWLYH
WXPRU,)LWZDVWKHQ,ZRXOGJHWFOHDUDQFHIURPKHURQFRORJLVWEHIRUHVWDUWLQJKHU
RQ WKH SURJUDP WKHRUHWLFDOO\ DQ\ FDQFHU FHOOV VWLOO SUHVHQW FRXOG JHW VWLPXODWHG E\
WKH HVWURJHQ UHOHDVHG DV VKH ORVHV IDW 7KDW EHLQJ VDLG UHPHPEHU FDQFHU ORYHV
VXJDUWKDW
VZK\D3(7VFDQZRUNVZHJLYH\RXUDGLRDFWLYHJOXFRVHDQGWKHFDQFHU
FHOOVVXFNLWXSIDVWHUWKDQWKHQRUPDOFHOOVVRZKHQZHWDNHDQ;UD\WKH\
UHWKH
RQHV WKDW JORZ ,QVXOLQ WHOOV FHOOV WR GLYLGH IDVWHU LW
V D JURZWK IDFWRU $1' LW
VWLPXODWHVSUROLIHUDWLRQRIEORRGYHVVHOVVRPHWKLQJDFDQFHUPDVVQHHGVLQRUGHUWR
PDLQWDLQ JURZWK ,W PXVW SURGXFH PRUH EORRG YHVVHOV WR IHHG LWVHOI 3OXV DQ DFLGLF
HQYLURQPHQWLVFRQGXFLYHWRFDQFHUJURZWK7KXVIRUDOOWKHVHUHDVRQVRXUSURWRFRO
LV YHU\ XQIULHQGO\ WR FDQFHU EXW WKH RQFRORJLVW VKRXOG GHFLGH LI WKH SURJUDP LV
VXLWDEOHIRUKLVKHUSDWLHQW
, KDYH D SDWLHQW ZKR LV RQ&RXPDGLQ DQGZDV WROG QRW WR HDW DQ\ FDEEDJH
OHWWXFHEURFFROLJUHHQEHDQVWXUQLSJUHHQVHWFEXWKHKDVDQGKLVOHYHOV
RI &RXPDGLQ QHHGHG KDYH VN\URFNHWHG &DQ KH GR WKH SURWRFRO DQG HDW
VRPHWKLQJHOVH"&DQSDWLHQWVRQ&RXPDGLQGRWKLVSURWRFRO"
3DWLHQWV RQ &RXPDGLQ FHUWDLQO\ 0$< GR WKH SURWRFRO RYHU D FRXSOH RI PRQWKV
HVSHFLDOO\LIWKH\VXSSOHPHQWZLWKVRPHJRRG2PHJDRLOVLHILVKRLOFRGOLYHURLO
DQG GHFUHDVLQJ WKHLU EORRG VXJDU YLD WKH SURWRFRO WKHLU GRVDJH RI &RXPDGLQ FDQ
XVXDOO\ EH UHGXFHG +RZHYHU FHUWDLQ YHJHWDEOHV GXH WR WKHLU KLJK YLWDPLQ .
FRQWHQWFDQ FDXVHFHUWDLQFORWWLQJIDFWRUVWRLQFUHDVHWKXVQHFHVVLWDWLQJDQHHGIRU
DQLQFUHDVHG GRVH RI &RXPDGLQ :DUIDULQ $WWDFKHG LV D OLVW RI WKH . FRQWHQW RI
YDULRXVIRRGV3DWLHQWVVKRXOGSLFNWKHYHJHWDEOHVWKDWKDYHWKHORZHVWOHYHOVRI.
DQGLWVKRXOGQRWSRVHDSUREOHPZLWKWKHSURWRFRO
*RRG UHFRPPHQGDWLRQV ZRXOG EH PXVKURRPV ]XFFKLQL SHSSHUV JDUOLF RQO\
LFHEHUJOHWWXFHFHOHU\HWF,ZRXOGDGYLVHWRNHHSWKLVOLVWKDQG\DQGWKHGRFVFDQ
JLYHLWWR SDWLHQWV ZKR PXVW WDNH &RXPDGLQ $OVR WKHUH
V D SKDUPDFLVW
V WULFN LI
QHFHVVDU\WKHSDWLHQWFDQWDNHDEDE\DVSLULQSHUGD\7KLVZLOOFDXVHWKH OHYHOV
RI&RXPDGLQWRULVHLQWKHEORRGZLWKRXWLQFUHDVLQJWKHGRVHRIWKHGUXJ
1RWH7KLV VKRXOG RQO\ EH GRQH LI DEVROXWHO\ QHFHVVDU\ DQG WKH SDWLHQW VKRXOG EH
DGYLVHGWRZDWFKIRUVLJQVRIEUXLVLQJ
,V.HWRVLVVDIH"
0DQ\ SHRSOH PHGLFDO SURIHVVLRQDOV LQFOXGHG KDYH D ZURQJ LGHD DERXW NHWRVLV
7KH\ FRQIXVH WKLV ZLWK WKH SDWKRORJLFDO FRQGLWLRQ RI NHWRDFLGRVLV ZKLFK FDQ EH D
OLIHWKUHDWHQLQJFRQGLWLRQ.HWRVLVMXVWUHIHUVWRWKHVWDWHRIPHWDEROLVPWKHERG\LV
LQ ZKHQ LW LV XVLQJ IDW IRU WKH SULPDU\ HQHUJ\ VRXUFH WKLV LV KRZ RXU DQFHVWRUV
VXUYLYHGGXULQJWLPHVRIIDPLQHZHOLYHRIIRXUIDWUHVHUYHV,WLVSHUIHFWO\QRUPDO
DQGKHDOWK\
:HDOOGRDOLWWOHNHWRVLVHYHU\QLJKWZKHQZHVOHHS$VZHIDVWGXULQJWKHQLJKW
EORRGVXJDUGURSV7RPDLQWDLQSURSHUJOXFRVHKRPHRVWDVLVWKHERG\GRHVDFRXSOH
RIWKLQJV
•
•
•
7KHOLYHUFDQUHOHDVHVRPHJO\FRJHQZKLFKLVFRQYHUWHGWRJOXFRVH
6RPH PXVFOH FDQ EH FDWDEROL]HG DQG JOXFRVH FDQ EH SURGXFHG YLD
JOXFRQHRJHQHVLV
)DW FHOOV FDQ UHOHDVH VRPH RI WKHLU FRQWHQWV WULJO\FHULGHV DQG WKHVH
FDQ EH PHWDEROL]HG LQ WKH OLYHU WR NHWRQLF ERGLHV D KLJK HQHUJ\ IXHO
VRXUFHDQGJOXFRVH
$W ZKDW SRLQW LV NHWRVLV KDUPIXO IRU WKH DYHUDJH SDWLHQW ZLWK KHDOWK
SUREOHPV" :KDW LV WKH OHQJWK RI WLPH D SDWLHQW FDQ EH LQ NHWRVLV DQG LW
ZRQ¶WEHKDUPIXOWRWKHERG\"
$VORQJDVZHVSDUHWKHPXVFOH NHHSDFLGEDVHEDODQFH LQFKHFN DQGQRW SXWD
SHUVRQ RQ WKH SURJUDP ZLWK NLGQH\ RU OLYHU GLVHDVH NHWRVLV LV QRUPDO PHWDEROLVP
7KHERG\LVMXVWOLYLQJRIILWVIDWUHVHUYHVDQGLWLV127GDQJHURXV,QDVWXG\
ZDV SXEOLVKHG VKRZLQJ WKH VDIHW\ DQG HIILFDF\ RI D NHWRJHQLF GLHW LQ WUHDWLQJ
FKLOGUHQZLWKHSLOHSV\7KHVHFKLOGUHQUDQJLQJLQDJHIURPWR\HDUVZHUHJLYHQ
D NHWRJHQLF GLHW IRU \HDUV 7KLV ZDV GRQH DW WKH SUHVWLJLRXV -RKQ 0 )UHHPDQ
(SLOHSV\ &HQWHU 'HSDUWPHQWV RI 1HXURORJ\ DQG 3HGLDWULFV 7KH -RKQV +RSNLQV
0HGLFDO ,QVWLWXWHV%DOWLPRUH0'*URHVEHFN'.%OXP5 0.RVVRII (+
/RQJWHUP XVH RI WKH NHWRJHQLF GLHW LQ WKH WUHDWPHQW RI HSLOHSV\ 'HYHORSPHQWDO
0HGLFLQHDQG&KLOG1HXURORJ\9ROSS
:HVLPSO\WKURXJKWKHSURWRFRONHHSWKHGLHWHULQWKHVWDWHZKHUHWKHERG\LVXVLQJ
LWVVWRUHGHQHUJ\IDWIRUWKHSULPDU\IXHOVRXUFH:HRIIHUWKH0,1,080DGHTXDWH
DPRXQW RI KLJK TXDOLW\ SURWHLQ RQO\ WR VSDUH WKH PXVFOH UHPHPEHU WKH ERG\ FDQ
EUHDNGRZQPXVFOHWRJHWJOXFRVHDQGWKLVLVZKDWKDSSHQVLQPDQ\RWKHUGLHWVDQG
LV WKH PDLQ UHDVRQ ZK\ GHWHUV W\SLFDOO\ \R\R :KHQ \RX ORVH PXVFOH \RXU
PHWDEROLVPVORZVDQG\RXDUHPRUHOLNHO\WRUHJDLQ\RXUZHLJKW
&DQD'LHWHUEHLQNHWRVLVEHIRUHJRLQJLQWRIHPDOHVXUJHU\"
:H GRQ¶W HQFRXUDJH LW 7KH OLYHU SUREDEO\ ZRXOG PHWDEROL]H WKH DQHVWKHVLD VORZHU
GXH WR KDQGOLQJ WKH NHWRQHV DW WKH VDPH WLPH 6KH VKRXOG GLVFRQWLQXH WKH SURWRFRO
XQWLODIWHUVXUJHU\RUDVNWKHDQHVWKHVLRORJLVW
$UH WKHUH DQ\ SURGXFWV WKDW VRPHRQH ZKR LV ODFWRVH LQWROHUDQW VKRXOG
DYRLG"
3HRSOH ZKR DUH ODFWRVH LQWROHUDQW GR QRW SURGXFH WKH HQ]\PH ODFWDVH DUH WKHUHIRUH
FDQQRWGLJHVWWKHVXJDUODFWRVHDGLVDFFKDULGHFRPSRVHGRIDPROHFXOHRIJDODFWRVH
DQG JOXFRVH ,I WKH\ LQJHVW ODFWRVH WKH\ W\SLFDOO\ FDQ JHW FUDPSV RU JDV 7KLV LV
127DQDOOHUJ\VRWKH\ZRXOGQ
WKDYHDOLIHWKUHDWHQLQJDQDSK\ODFWLF UHDFWLRQ2XU
SURGXFWV WKDW FRQWDLQ ZKH\ LVRODWHV PRVW RI WKH GULQNV RQO\ FRQWDLQ DERXW ODFWRVHDQGWKLVVPDOODPRXQWXVXDOO\GRHVQRWFDXVHDQ\SUREOHPVZLWKWKHVHIRONV
, ZRXOG KDYH WKHP DYRLG WKH SURGXFWV WKDW FRQWDLQ ZKROH PLON SURWHLQ WKH
FDSSXFFLQR WKH FKRFRODWH GULQN WKH RPHOHW WKH FULVS\ FHUHDO SXGGLQJV HWF 7KH
RWKHURSWLRQLVWROHWWKHPWU\DVPDOODPRXQWRIVRPHRIWKHVHIRRGVDQGWRVHHLI
WKH\LQIDFWGRH[SHULHQFHDQ\GLVFRPIRUW7KH\FDQWDNHRQHRIWKHPDQ\SURGXFWV
IRU ODFWRVH LQWROHUDQW SHRSOH WKDW FRQWDLQ ODFWDVH LH 'DLU\(]H RU /DFWDLG %XW
PRVWRIWKHVHIRONVMXVWRSWWRDYRLGWKHIRRGVFRQWDLQLQJWKHZKROHPLONSURWHLQ
,VLWQRUPDOWRKDYHJUDVV\JUHHQVWRROVGXULQJWKHGLHW"
%DVLFDOO\ JUHHQ VWRROV DUH QR FDXVH IRU DODUP %LOH ZKLFK LV EULJKW JUHHQ LV
VHFUHWHG LQWRWKHVPDOO LQWHVWLQHWR KHOS GLJHVW IDW:KHQWKHFRQWHQWVRIWKH VPDOO
LQWHVWLQH HQWHU WKH ODUJH LQWHVWLQH EDFWHULD VWDUW WR EUHDNGRZQ WKH ELOH DQG WXUQ LW
EURZQ LQ FRORU ,I WKH FRQWHQWV RI WKH LQWHVWLQH PRYH WKURXJK TXLFNO\ OLNH LQ
GLDUUKHD WKH EDFWHULD PD\ QRW KDYH VXIILFLHQW WLPH WR DFW RQ WKH ELOH DQG LW ZLOO
UHPDLQJUHHQ
2WKHUFDXVHVPD\EH
•
•
•
&KORURSK\OODVLQHDWLQJDORWRIOHDI\JUHHQYHJJLHVOLNHRQRXUGLHW
$UWLILFLDOFRORUVHVSHFLDOO\WKHEOXHDQGSXUSOHRQHVIURPQRFDOFRORUHGGULQNV
,URQVXSSOHPHQWV7KHVHPD\FDXVHDJUHHQLVKWLQJHWRWKHVWRRO
,VLWQRUPDOWRKDYHGLDUUKHDDIWHUEHLQJFRQVWLSDWHG"
7KHERG\LVSDVVLQJWKURXJKDGHWR[LI\LQJSURFHVVFDXVHGE\WKHGLHW6RPHSHRSOH
KDYH PXOWLSOH ORRVH VWRROV SHU GD\ GXULQJ WKH ILUVW DQG VHFRQG ZHHNV 7KLV LV
QRWGLDUUKHDLHSDVVLQJZDWHU\VWRROVHYHU\PLQXWHVRUVR
,KDYHKDGSDWLHQWVZKRJRWDOLWWOHERXQGXSRQ,GHDO3URWHLQZLWKLQWKH
ILUVW ZHHNV RI WKH SURJUDP , UHFRPPHQGHG 'RFXVDWH6HQQD RQ ILUVW
QLJKW WDNHQ EHIRUH EHG WKHQ TKV WKHUHDIWHU XQWLO SUREOHP UHVROYHG
2QFH UHVROYHG SHUKDSV VWDUW D 6) GDLO\ ILEHU VXSSOHPHQW 0HWDPXFLO VXJDU
IUHHHWF,VLWVDIHDQGHIIHFWLYH"
'RFXVDWH VRGLXP &RODFH DQG WKH FRPELQDWLRQ RI 'RFXVDWH &DVDQWKUDQRO D
QDWXUDOVWLPXODQWVLPLODUWR6HQQD3HULFRODFHKDYHEHHQXVHGIRU\HDUVERWKDV5[
SURGXFWVDVZHOODV27&SURGXFWV1RWRQO\GRHVWKH)'$FRQVLGHUWKHVHSURGXFWVWR
EH VDIH DQG HIIHFWLYH WKH\ KDYH VWRRG WKH WHVW RI WLPH0DQ\ 5[ GUXJV DUH
DSSURYHG WR EH VDIH DQG HIIHFWLYH EXW DIWHU D IHZ \HDUV DQG PDQ\ WKRXVDQGV RI
SDWLHQWV QHJDWLYH VRPHWLPHV YHU\ VHULRXV DGYHUVH UHDFWLRQV PD\ RFFXU %H[WUD
9LRR[%D\FRO+LVPDQDO6HOGDQHDUHRQHVLQUHFHQWPHPRU\:HFRQVLGHUWKDWWKH
GUXJ KDVWR EH RQWKH PDUNHWIRUDW OHDVW \HDUVWRUHDOO\EHFHUWDLQRILWVVDIHW\
&RODFH DQG 3HULFRODFH KDYH EHHQ RQ WKH PDUNHW IRU RYHU \HDUV DQG WKH\ DUH
FRPPRQO\XVHGDVVWRROVRIWHQHUVOD[DWLYHVLQPRVWKRVSLWDOIRUPXODULHV'RFXVDWH
LVQRWDWDOOV\VWHPLFDOO\DEVRUEHGDQGMXVWDFWVDVDVXUIDFWDQWRQWKHVWRROOHWWLQJ
PRUHZDWHUSHQHWUDWHLWWRVRIWHQLW)LEHUVXSSOHPHQWVOLNHWKHVXJDUIUHH0HWDPXFLO
DUHILQH)250$,17$,1,1*1250$/%2:/6+$%,76%876+28/'1(9(5%(86('
7275($7&2167,3$7,217KLVZLOOXVXDOO\PDNHWKHSUREOHPZRUVH
&DQDSHUVRQXVH3V\OOLXPZLWK6HQQDDQG,URQRQWKLVSURJUDP"
,I \RX DUH XVLQJ WKH 3V\OOLXP WR NHHS UHJXODU DQG 127 WUHDW FRQVWLSDWLRQ WKHQ LW LV
RNXQVZHHWHQHGRQO\,IDOUHDG\FRQVWLSDWHGQR0DJQHVLXP&LWUDWHLVWKHEHVW
IRU FRQVWLSDWLRQ :H GR QRW UHFRPPHQG VXSSOHPHQWLQJ ZLWK ,URQ XQOHVV WKH
3K\VLFLDQLVUHFRPPHQGLQJLW
&DQDSDWLHQWWKDWKDGD3DQFUHDWLF'XRGHQHFWRP\RUD:KLSSOHSURFHGXUH
DQGDOLWWOHVWRPDFKQRJDOOEODGGHUDQGQRGXRGHQXPEHRQWKH3URWRFRO"
7KHUHVKRXOGEHQRSUREOHPV$FWXDOO\ZLWKDOLWWOHVWRPDFKWKLVZRXOGEHJRRGIRU
KHUKLJKQXWULWLRQLQDVPDOOYROXPH6WDUWRQUHJXODUSURJUDP
&DQ D SDWLHQW WKDW KDV DUUK\WKPLD RIWHQ VWDUW WKH UHJXODU SURWRFRO" 7KH
SDWLHQWKDGFDUGLDFREODWLRQWRWU\DQGVROYHWKLVEXWLIWKHSDWLHQWJRHVRII
KLVPHGLFDWLRQVKHVWLOOJRHVLQWR$)LE
7KH $OWHUQDWLYH 3URWRFRO LV VXLWDEOH IRU KLP MXVW PDNH VXUH KH WDNHV WKH
VXSSOHPHQWV DV SHU WKH SURWRFRO ,I KH KDV D K\SRJO\FHPLF HSLVRGH ZKLFK LV QRW
XQFRPPRQDQG QRW GDQJHURXV KLVKHDUWUDWH ZLOO LQFUHDVHDVWKHDGUHQDOVVHFUHWH
HSLQHSKULQHDGUHQDOLQHWRKHOSUDLVHWKHEORRGVXJDU+HVKRXOGHDWDIHZRIRXU
FKRFRODWHFRYHUHGVR\SXIIVWRUDLVHWKHEORRGJOXFRVHVOLJKWO\DQGEULQJKLPRXWRI
WKDWFUXPP\IHHOLQJ,IKLVSURFHGXUHZDVGRQHOHVVWKDQPRQWKVDJRKHVKRXOG
JHWSHUPLVVLRQIURPKLV3&3FDUGLRORJLVWRUVXUJHRQEHIRUHVWDUWLQJ
&DQWHHQDJHUSDWLHQWVJRRQWKHSURWRFRO"
:H VXJJHVW WKDW 7HHQDJHUV JR RQ WKH $OWHUQDWLYH 3URWRFRO DW OHDVW IRU D FRXSOH RI
ZHHNV ,I WKH 7HHQDJHU LV UHDOO\ REHVH DQG KDV UHDOO\ EDG EORRG ZRUN LH KLJK
IDVWLQJ JOXFRVH EDG OLSLG SDQHO DQG EDVLFDOO\ RQ WKH YHUJH RI EHFRPLQJ D 7\SH ,,
GLDEHWLFZHFDQFRQWHPSODWHPRYLQJKLPKHUWRWKHUHJXODUSURWRFROWRKHOSUHVWRUH
QRUPDOSDQFUHDWLFIXQFWLRQEXWRQO\DIWHUZHVHHKRZKHVKHGRHVRQWKH$OWHUQDWLYH
3URJUDP
,¶P ZRUNLQJ ZLWK D \RXQJ GLDEHWLF DQ DGROHVFHQW VKRXOG , KDYH DQ\
VSHFLDODSSURDFK"
)LQG RXW LI KH LVD7<3(,RU7<3(,, GLDEHWLF$W\HDUVROG,ZRXOGWKLQN KH LVD
7<3(,,IWKDW
VWKHFDVH+(0867'27+($/7(51$7,9(35272&2/LI\RXSXW
D 7<3( , RQ WKH UHJXODU GLHW \RX UXQ WKH ULVN RI FDXVLQJ NHWRDFLGRVLV ZKLFK FDQ
EHFRPH IDWDO YHU\ TXLFNO\ $OVR EHFDXVH RI KLV DJH KH PXVW XVH WKH $OWHUQDWLYH
3URWRFRODQ\ZD\DVZHGRQ
WH[FOXGHIRRGJURXSVIURPJURZLQJFKLOGUHQXQOHVVZH
JHW H[SOLFLW ZULWWHQ SHUPLVVLRQ IURP WKHLU SHGLDWULFLDQ 6R WKH $OWHUQDWLYH 3ODQ
ZRXOGEHWKHWKLQJWRGRIRUERWKRIWKHVHUHDVRQV
([DPSOHRI$OWHUQDWLYH
%UHDNIDVWOLNHUHJXODUGLHWH[FHSWJLYHVOLFHVRIZKROHJUDLQEUHDGRUWRDVW
/XQFKOLNHUHJXODUGLHWEXWJLYHDR]JODVVRIORZIDWPLON
6XSSHU OLNH UHJXODU GLHW EXW JLYH D JRRG IUXLW IRU GHVVHUW DQ DSSOH JUDSHV RU
EHUULHV
%HGWLPH VQDFN0$< EH D UHVWULFWHG IRRGEDU FKRFRODWHFRYHUHG FULVSV QRW
QHFHVVDU\EXW2.LISHUVRQZLVKHV
6R WKH\ JHW 21( ZKROH JUDLQ SURGXFW 21( GDLU\ DQG 21( IUXLW SHU GD\ WKH\
&$1127
VZDSRXW LH VNLS WKH GDLU\ DQG KDYH IUXLWV 7KH\ KDYH 21($1'21/<21(
)520($&+*5283
&DQDSHUVRQZLWKDKLVWRU\RI$QRUH[LDJRRQWKH3URWRFRO"
:H KDYH WR EH FDUHIXO ZLWK SDWLHQWV ZKR KDYH D KLVWRU\ RI HDWLQJ GLVRUGHUV
DQRUH[LD EXOLPLD HWF 0DQ\ RI WKHP KDYH VHULRXV XQGHUO\LQJ SV\FKRORJLFDO
SUREOHPV DQG ZH ZRXOG VXJJHVW WKH\ JHW WKH SURSHU KHOS IURP D OLFHQVHG
SURIHVVLRQDOVSHFLDOL]LQJLQWKHVHPDWWHUVDVZHDUHQRWWKHH[SHUWVKHUH7KDWEHLQJ
VDLG\RXFDQFHUWDLQO\VWDUWKLPKHURQWKHSURJUDPEXWEHDWWXQHGWRKLVKHUPRRG
DQGRYHUDOOPHQWDORXWORRN
:KDWLVWKHUHODWLRQEHWZHHQ,GHDO3URWHLQDQG'LYHUWLFXOLWLV"
'LYHUWLFXOLWLV '9 LV D FRQGLWLRQ ZKHUH WKH 'LYHUWLFXOL WKRXVDQGV RI OLWWOH ULGJHV
KLOOV DQG YDOOH\V WKDW OLQH WKH LQWHVWLQHV VR DV WR LQFUHDVH WKH VXUIDFH DUHD IRU
DEVRUSWLRQ RI QXWULHQWV KDYH D SURSHQVLW\ WR EHFRPLQJ LQIODPHG ,Q VRPH SHRSOH
WKHVH EHFRPH HQODUJHG GLYHUWLFXORVLV DQG IRRG SDUWLFOHV FDQ EHFRPH WUDSSHG LQ
WKHP 6RPHWLPHV WKLV FDXVHV DQ LQIODPPDWRU\ UHVSRQVH DQG WKH\ JHW VZROOHQ RU
LQIHFWHG DQG LW KXUWV GLYHUWLFXOLWLV 2XU SURWHLQ GRHVQ
W DJJUDYDWH WKLV EXW WKH
UHTXLUHGYHJJLHVDQGOHWWXFHFDQ)RUWKLVUHDVRQSDWLHQWVZLWKDKLVWRU\RI'9VKRXOG
SXUHHWKHLUYHJJLHVOHWWXFHVSLQDFKHWF$QGXVHWKHSXUHHLQRQHRIWKHVRXSV
, KDYH D 'LHWHU WKDW VXIIHUV IURP SDQLF DWWDFNV $IWHU VRPH ZHHNV RQ WKH
GLHW VKH VWDUWHG WR KDYH D SDQLF DWWDFN IHHOLQJ VWUHVVHV VFDUHG DQG
QDXVHRXV 6KH ZDV H[WUHPHO\ HPRWLRQDO FRXOGQ¶W VWRS FU\LQJ RU VKDNLQJ
+HU ³KHDUW ZDV UDFLQJ´ VKH ZDV H[WUHPHO\ ZHDN DQG YHU\ WLUHG 6KH
VWDUWHG³SHULRGVSRWWLQJ´DQGFUDPSLQJWKHVDPHGD\,DGYLVHGKHUWRWDNH
ò WVS RI VHD VDOW LQ D ODUJH JODVV RI ZDWHU WR WDNH WZR DGGLWLRQDO
&DOFLXP0DJ DQG RQH DGGLWLRQDO FDOFLXP3RWDVVLXP SHU GD\ IRU WKH QH[W
VHYHUDOGD\VWRPDNHVXUHVKHLVJHWWLQJRXQFHVRIZDWHUSHUGD\6KH
DSSHDUHG YHU\ ZHDN DIWHU VRPH GD\V , WROG KHU WR VWRS WKH GLHW DQG WR
JUDGXDOO\LQWURGXFHIRRGHDWLQJDVPDOOSRUWLRQHYHU\WZRKRXUV
7KH V\PSWRPV WKDW VKH LV H[SHULHQFLQJ ZRXOG EH FRQVLVWHQW ZLWK VHYHUH UHDFWLYH
K\SRJO\FHPLDUDFLQJKHDUWEHDWFODPPLQHVVDQGDQ[LHW\7KLVLVGXHWRKHUDGUHQDOV
SXPSLQJ RXW HSLQHSKULQH DGUHQDOLQH LQ UHVSRQVH WR ORZ EORRG VXJDU (DWLQJ PRUH
FDUERK\GUDWHVZLOORQO\H[DFHUEDWHWKLVSDQFUHDVRYHUVHFUHWHVLQVXOLQDQGKHUEORRG
VXJDU WKHQ GURSV DJDLQ 6KH VKRXOG FRQVXPH DQRWKHU ,GHDO 3URWHLQ IRRG LQ PLG
DIWHUQRRQ6KHFRXOGDOVRFDUU\DEDJRIWKHFKRFRODWHVR\SXIIVLQKHUSXUVHDQGHDW
WRRIWKHPZKHQVKHVWDUWVWRIHHOWKHVHV\PSWRPV6KHPD\DOVRZDQWWRSXWD
WVSRI1RUGLF1DWXUDOVRUDQJHIODYRUHGILVKRLOLQDSHDFKPDQJRVKDNHIRUEUHDNIDVW
WKLV UHDOO\ KHOSV WR VWDELOL]H EORRG VXJDU .HHS WKH UHVWULFWLYH IRRGV DW D PLQLPXP
ZLWK WKH H[FHSWLRQ RI WKH VR\ SXIIV $V KHU LQVXOLQ UHVLVWDQFH LPSURYHV WKHVH
V\PSWRPVZLOODEDWH<RXUUHFRPPHQGDWLRQVRIWKHVDOWDQGZDWHUZHUHULJKWRQIRU
WKH OLJKWKHDGHGQHVV ,I V\PSWRPV SHUVLVW FRQVLGHU KDYLQJ KHU 3&3 DGGLQJ D VPDOO
GRVHRIDEHWDEORFNHUVXFKDVWRPJVRI$WHQRORORQFHDGD\
, KDYH D SDWLHQW H[SHULHQFLQJ KHDUW SDOSLWDWLRQ DQG QHUYRXVQHVV DIWHU ZHHNV RQ WKH SURWRFRO 6KH IHHOV VKDN\ HYHU\ WLPH VKH KDV D VKDNH ,V LW
QRUPDO"
6KH LV KDYLQJ ERXWV RI K\SRJO\FHPLD ZKLFK WHOOV PH VKH
V YHU\ LQVXOLQ UHVLVWDQW ,I
VKH LV RQ 5; PHGV IRU EORRG VXJDU SUREOHPV ZH QHHG WR WHOO WKH GRFWRU KHU EORRG
VXJDULVORZDQGKHVKHFDQORZHUWKHGRVH,IVKH
VQRWRQDQ\PHGVWHOOKHUWR
WDNH D KDQGIXO RI WKH FKRFRODWH FRYHUHG VR\ SXIIV 7KH\ ZLOO JLYH KHU MXVW HQRXJK
VXJDUWREULQJKHURXWRIWKDWIHHOLQJEXWQRWHQRXJKWRVFUHZXSWKHSURWRFRO7KH
SDOSLWDWLRQV DQG VKDNLQHVV DUH GXH WR WKH DGUHQDOLQH KHU DGUHQDO JODQGV DUH
SURGXFLQJLQUHVSRQVHWRORZEORRGVXJDU+HUERG\MXVWQHHGVDOLWWOHPRUHJOXFRVH
7KLV XVXDOO\ VWUDLJKWHQV RXW DIWHU WKH\
YH EHHQ RQ WKH SURWRFRO IRU DERXW WR ZHHNV
,VLWSRVVLEOHIRUWKH,3SURJUDPWRWULJJHUKRUPRQHUHFHSWRUVWKDWEULQJRQ
0HQRSDXVH
RU
3UHPHQRSDXVDOV\PSWRPVDQGRUDFWXDORQVHW"
1R $V ZRPHQ ORVH IDW HVWURJHQ DQG HVWURJHQOLNH FRPSRXQGV FDOOHG [HQR
HVWURJHQVDUHUHOHDVHGIURPWKHIDWFHOODORQJZLWKWKHIDW7KHVHFRPSRXQGVPD\
ELQGWRDQGVWLPXODWHHVWURJHQUHFHSWRUVFDXVLQJDPRQJRWKHUWKLQJVIOXFWXDWLRQVLQ
WKHZRPDQ
VPHQVWUXDOF\FOH<RXPD\VHHSRVWPHQRSDXVDOZRPHQVWDUWWRVSRW
RU \RXQJHU ZRPHQ KDYLQJ SURORQJHG RU PXOWLSOH SHULRGVSHU PRQWK 7KLV LV DOZD\V
WUDQVLHQWDQGHYHU\WKLQJZLOOUHWXUQWREDVHOLQHRQFHPRVWRIWKHIDWKDVEHHQORVW
:H DOVR NQRZ WKDW LQ RYHUZHLJKW SRVWPHQRSDXVDO ZRPHQ WKH DGLSRF\WH ZLOO
SURGXFH ( HVWURQH RQH RI WKH W\SHV RI HVWURJHQ 7KLV LV D ULVN IDFWRU IRU
PDQ\ FDQFHUV LQFOXGLQJ EUHDVW FDQFHU /RVLQJ WKH ZHLJKW VHHPV WR OHVVHQ WKLV
SURGXFWLRQ DQG WKH FDQFHU ULVN LV UHGXFHG 7KLV LV WKH EDVLV IRU XVLQJ VRPH RI WKH
SK\WRHVWURJHQV DQG VLPLODU FRPSRXQGV 5[ GUXJV 1ROYDGH[ DQG (YLVWD IRU WKH
SUHYHQWLRQ RU UHRFFXUUHQFH RI EUHDVW &$ WKHVH EHLQJ YHU\ ZHDN HVWURJHQV WKH\
FRPSHWHIRUWKHHVWURJHQUHFHSWRUZLWKWKHHVWURQHDQGWKHRYHUDOOHIIHFWLVWROHVVHQ
HVWURJHQLFDFWLYLW\
:KDWLVWKHUHODWLRQEHWZHHQWKH,GHDO3URWHLQ3URWRFRODQGSUHJQDQF\"
,W WDNHV DERXW WKUHH GD\V WR FRPSOHWHO\ GUDLQ WKH JO\FRJHQ WDQN DQG IRUFH \RXU
ERG\WRUHDOO\JHWLQWRWKHIDWEXUQLQJPRGH7KLVPHDQVZHSUREDEO\ZRXOGQ
WVHHD
PHDVXUDEOHLQFUHDVHLQHVWURJHQOHYHOVXQWLODWOHDVWDIXOOZHHNLQWRWKHSURJUDP:H
VKRXOGFRXQVHOZRPHQ ZKRDUHVWLOOIHUWLOHWRXVHDEDFNXS IRUPRI FRQWUDFHSWLRQ
LQ DGGLWLRQ WR %&
V LI WKH\ DUH VH[XDOO\ DFWLYH DQG DUH VWDUWLQJ WKH SURWRFRO DV
FKDQJHVLQWKHLUF\FOHVPD\RFFXUDQGPD\UHQGHUWKHSLOOVOHVVHIIHFWLYHSDUWLFXODUO\
LIWKH\KDYHOEVRUPRUHWRORVH
+RZGRHVWKHSURWRFRODIIHFWWKHPHQVWUXDOF\FOH"
:H NQLFNQDPH WKH IDW FHOO WKH DGLSRF\WH WKH WKLUG RYDU\ DV LW VWRUHV H[FHVV
HVWURJHQV DQG VXEVWDQFHV ZLWK HVWURJHQOLNH DFWLYLW\ [HQRHVWURJHQV VXFK DV
WR[LQV IRXQG LQ SODVWLFV DQG SHVWLFLGHV 7KH ERG\ KDV D KDUG WLPH HOLPLQDWLQJ WKHP
DQGLIWKHOLYHUFDQ
WSURFHVVWKHPDOOWKHERG\VWDVKHVWKHPLQWKHIDWFHOOEHFDXVH
WKH\DUHO\SRSKLOLFVXEVWDQFHVHDVLO\GLVVROYHGLQIDWWREDVLFDOO\NHHSWKHPIURP
ELQGLQJWRHVWURJHQUHFHSWRUVDQGFDXVLQJWURXEOH
$V WKH\ ODGLHV EXUQ IDW WKHVH VXEVWDQFHV DUH UHOHDVHG LQ WKH EORRG VWUHDP DQG FDQ
FDXVH LUUHJXODULWLHV LQ WKHLU PHQVWUXDO F\FOHV SURORQJHG SHULRGV PXOWLSOH SHULRGV PRQWKVSRWWLQJLQ3267PHQRSDXVDOZRPHQDQGPD\PDNHRUDOFRQWUDFHSWLYHVOHVV
UHOLDEOH7KHVHSUREOHPVDUHRQO\WHPSRUDU\DQGZLOOFRPSOHWHO\UHVROYHE\WKHHQG
RI3KDVHLIQRWEHIRUH
,KDYHDSDWLHQWGRLQJZHOORQSURWRFROKRZHYHUVKHKDVVZHOOLQJSUREOHPV
LQ H[WUHPLWLHV6KH VDLG VKH DOZD\V KDV WKHVH SUREOHPV ZKHQ VKH KDG
PHQVWUXDO F\FOHV QRZ PHQRSDXVDO 6KH KDG VZHOOLQJ GXULQJ DOO
SUHJQDQFLHV
+HU HVWURJHQ OHYHOV DUH SUREDEO\ KLJKHU QRZ GR WR WKH IDW ORVV DQG WKLV PD\
SDUWLDOO\H[SODLQWKHZDWHUUHWHQWLRQ+DYHKHUFKHFNKHUEORRGSUHVVXUHLILWLVORZ
VKHPDGHQHHGWRLQFUHDVHKHUVDOW)LQGRXWLIVKHLVRQDQDQWLK\SHUWHQVLYHGUXJ
&HUWDLQRQHVOLNHWKHFDOFLXPFKDQQHOEORFNHUVFDQFDXVHVZHOOLQJLQWKHH[WUHPLWLHVLI
KHU%3LVWRRORZ6KRXOGWKLVEHWKHFDVHKHUSK\VLFLDQPD\QHHGWRGHFUHDVHWKH
GRVH6KHQHHGVDERXWWRPJVRIVHDVDOWGD\,IKHUERG\GRHVQ
WJHW
WKLV DQWLGLXUHWLF KRUPRQH LV VHFUHWHG ZKLFK FDXVHV WKH ERG\ WR UHWDLQ ZKDW OLWWOH
VRGLXP WKHUH LV DQG FRQVHTXHQWO\ ZDWHU UHWHQWLRQ ZLOO IROORZ 7U\ KDYLQJ KHU
LQFUHDVHWKHXVHRIKHUVDOWDQGVXJJHVWDVRXSRQFHDGD\IRUDZHHN
:KDWLVWKHFXWRIIIRUVHUXPFUHDWLQLQHWREHRQWKHSURWRFRO"&DQDSDWLHQW
ZLWKDVWDUWWKHSURJUDP"
$V\RXNQRZVHYHUHNLGQH\GLVHDVH LVDQDEVROXWHFRQWUDLQGLFDWLRQIRUSDUWLFLSDWLQJ
LQ WKH ,GHDO 3URWHLQ :HLJKW /RVV 0HWKRG :H ZDQW WR ORRN DW *)5 JORPHUXODU
ILOWUDWLRQ UDWH DQG QRW MXVW %81 EORRG XUHDQLWURJHQ EDODQFH RU VHUXP FUHDWLQLQH
,QWKH86V\VWHPD*)5 RI RYHU POPLQ LV FRQVLGHUHG QRUPDO NLGQH\ IXQFWLRQ
:H
YHKDGSDWLHQWVZKRVHSK\VLFLDQVKDYHVWDUWHGWKHPRQWKHSURWRFROZLWKD*)5
DV ORZ DV POPLQ LH DERXW RQH KDOI WKH QRUPDONLGQH\ IXQFWLRQ 8QGHUVWDQG
WKLV LV 21/< WR EH GRQH XQGHU WKH FDUH RI D PHGLFDO GRFWRU $1' ZH DGYLVH WKH
SK\VLFLDQ WR GR D UHSHDW *)5 LQ ZHHNV 6KRXOG WKH *)5 VWD\ WKH VDPH 25
LPSURYHWKHSDWLHQWLVILQHDQGFDQSURFHHGZLWKWKH SURWRFRO +RZHYHU VKRXOG WKH
*)5ZRUVHQWKHSDWLHQWLVLPPHGLDWHO\WROGWRGLVFRQWLQXHWKHSURWRFRO
,KDYHDSDWLHQWZKRLVDW\SHGLDEHWLF6KHKDVEHHQRQWKHSURJUDPIRU
DOPRVWD\HDUDQGGRQHYHU\ZHOO+HU$*LVGRZQWRWKHORZ
V5HFHQWO\
VKHKDVGHYHORSHGDUDVKRQKHUDQNOHDQGHOERZDQGKHDG,WLVNLQGRIOLNH
HF]HPDDQGLWFKHVWHUULEO\,VVKHKDYLQJDUHDFWLRQWRDQ\RIWKHSURWHLQV"
$V VKH KDV EHHQ RQ WKH SURJUDP IRU TXLWH D ZKLOH VKH SUREDEO\ ZRXOG KDYH
GHYHORSHGLWVRRQHUKDGVKHKDGDUHDFWLRQWRRXUIRRGV:HUHFRPPHQGWKHXVHRI
1RUGLF 1DWXUDOV RU &DUOVRQ
V RUDQJH IODYRUHG ILVK RLO 6KH FDQ PDNH D SHDFKPDQJR
GULQN RU WKH SLQHDSSOHEDQDQD GULQN $IWHU VKH PDNHV WKH GULQN DGG RQH
WDEOHVSRRQIXOPORIWKHRLOWRWKHGULQNDQGVKDNHZHOO7HOOKHUWRKDYHWKLVIRU
EUHDNIDVWHYHU\GD\IRUGD\VWRZHHNV.HHSWRRSHQHGERWWOHRIRLOLQWKHIULGJH
7KLVZRUNVYHU\ZHOOIRUSVRULDVLVDQGHF]HPDDOVRDQ\LQIODPPDWRU\FRQGLWLRQ
:K\LWLVUHFRPPHQGHGWRKDYHDS+WHVW"
+LJK XULFDFLG OHYHOVDUHD FRPPRQ EXW OHVV ZHOONQRZQFRQVHTXHQFH RI6\QGURPH
;7KXVZKHQUHYLHZLQJWKHSDWLHQW
V+HDOWK3URILOHFKHFNWRVHHLIWKH\LQGLFDWHD
KLVWRU\ RI JRXW RU VWRQHV LQ WKH VHFWLRQ .LGQH\ +HDOWK ,I WKHUH LV D KLVWRU\ RI
HLWKHU RI WKHVH GLVRUGHUV LW PD\ EH SUXGHQW WR KDYH \RXU FOLHQW PRQLWRU KLV KHU
XULQH S+ 0RVW VWRQHV DQG JRXW GHYHORS ZKHQ WKH XULQH LV YHU\ DFLGLF RU
EHORZ,QWKHEHJLQQLQJZHHNVRIRXUSURWRFROZKHQWKHFOLHQWLVVSLOOLQJWKHPRVW
NHWRQHV WKH XULQH PD\ ZHOO EH LQ WKH UDQJH NHWRQHV EHLQJ DFLGLF VXEVWDQFHV
,GHDOO\ ZH ZRXOG OLNH WR NHHS WKHLU XULQH LQ WKH WR UDQJH LI \RX JHW LW WRR
DONDOLQH DERYH SKRVSKDWHVWRQHV PD\ IRUP 3K\VLRORJLFDO S+ WHVW SDSHU LH
1LWUD7HVWFDQ EHUDWKHU H[SHQVLYHWKH EHVWGHDO,IRXQG RQOLQH ZDV SHU
UROO2XUIULHQGVDW2XU+HDOWK&RRSFDUU\DJRRGDQGYHU\LQH[SHQVLYHEUDQGSOXV
WKH\ KDYH JHQHURXVO\ DJUHHG WR JLYH ,GHDO &OLQLFV D GLVFRXQW UHJXODU SULFH
<RXPD\JRWRWKHLUVLWHZZZRXUKHDOWKFRRSFRPDQGORRNXSS+WHVW,Q
WKH FKHFNRXW SRUWLRQ W\SH LGHDOSK LQ WKH FRXSRQ FRGH DQG WKH GLVFRXQW ZLOO EH
DSSOLHG ,W LV QRW PDQGDWRU\ WR FKHFN XULQDU\ S+ GXH WR WKH YHU\ IHZFDVHV ZH
YH
UXQ LQWR EXW ,EHOLHYH ZH VKRXOGJLYH WKH SRSXODWLRQ ZLWK WKHVH KLVWRULHV HYHU\
RSSRUWXQLW\WRVXFFHVVIXOO\FRPSOHWHRXUSURJUDPDVLWZLOOJUHDWO\UHGXFHFKDQFHVRI
UHFXUUHQFHVLQ WKH IXWXUH ,W ZRXOG EH D VKDPH IRUD SHUVRQ WR GURS RXW EHFDXVH
KHVKHWKRXJKWRXUSURWRFROFDXVHGWKHSUREOHP
, KDYH D SDWLHQW ZLWK ORZ WK\URLG 3267 SURWRFRO 6KH ORVW SRXQGV KDG
EORRGZRUN KDV ORZ WK\URLG IXQFWLRQ KDV SRO\SV RQ WK\URLG DQG VKH IHHOV
PRUHWLUHGQRZ$)7(5WKHSURWRFRO,VWKHUHDQ\NLQGRIQDWXUDOUHPHG\"
7KHSURWRFROGLGQ
WFDXVHWKLVVKHLVOLNHPDQ\RWKHUZRPHQK\SRWK\URLGLF)RUD
VXSSOHPHQWVKHQHHGVLRGLQH7KLVVKRXOGKHOSZLWKWKHSRO\SVDQGEULQJKHUOHYHOV
EDFNXS6KHFDQJRRQOLQHDQGJHW,2'25$/WDEOHWV7KLVLVD /XJRO
V6ROXWLRQ
7KHWDEVFRQWDLQPJVRILRGLQHLRGLGH\RXQHHGERWKIRUPV6KHVKRXOGWDNH
WDEV GDLO\ IRU GD\V WKHQ RQH HYHU\ GD\ WKHUHDIWHU2I FRXUVH ZH ZRXOG
UHFRPPHQG IRU KHU SK\VLFLDQ WR EH NHSWLQ WKHORRS ZLWK UHJDUG WR WKLV
VXSSOHPHQWDWLRQ
&DQWKH,GHDO3URWHLQ:HLJKW/RVVPHWKRGDIIHFWWKHUHVXOWVRID$/7
$ODQLQH$PLQRWUDQVIHUDVH6HUXP7HVW(Q]\PHLQWKHEORRG"
3OHDVH QRWLFH WKDW ,GHDO 3URWHLQ LV QRW D KLJK SURWHLQ SURWRFRO 7KH GLHWHU KDV WKH
PLQLPXP DPRXQW RI SURWHLQ WKH ERG\ QHHGV SHU GD\ VR WKH GLHWHU GRHVQ¶W ORVH
PXVFOHRUJDQPDVV7KLVVKRXOGKDYHQRHIIHFWRQWKH$/7HQ]\PHOHYHOQRUVKRXOG
RXU VXSSOHPHQWV:H GR QRWLFH LQ UDUH LQVWDQFHV WKDW VRPH RI WKH OLYHU HQ]\PHV
LQFUHDVH VOLJKWO\ 7KLV LV DOZD\V WHPSRUDU\ DQG PD\ EH UHODWHG WR WKH OLYHU
V
SURGXFWLRQRINHWRQHERGLHV
,VWKH,GHDO3URWHLQSURWRFROFRQWUDLQGLFDWHIRU&DQFHUSDWLHQWV"
7KH WKLQJ ZLWK FDQFHU SDUWLFXODUO\ IHPDOH FDQFHUV EUHDVW RYDULDQ XWHULQH LV WKDW
WKHWXPRUV0$<EHKRUPRQHUHFHSWRUSRVLWLYHWKHRQFRORJLVWZRXOGNQRZSRVVLEO\
WKH SDWLHQW WRR 7KXV ZKHQ WKH\ ORVH IDW HVWURJHQV DQG HVWURJHQ OLNH VXEVWDQFHV
ZLOOEHUHOHDVHGLQWKHEORRG7KHRUHWLFDOO\LWFRXOGVWLPXODWHDQ\FDQFHUFHOOVSUHVHQW
WKDW
VZK\ZHZDQWWRPDNHVXUHWKH\
UHFDQFHUIUHHIRU\HDUV25JHWSHUPLVVLRQ
IURPWKHLURQFRORJLVW2XUSURJUDPKDVPDQ\EHQHILWVDVIDUDVFDQFHUSDWLHQWVJR
EXWZHQHHGWRWDNHVSHFLDOFDUHZKHQWKHLUWXPRUVFRXOGEHKRUPRQHUHODWHG:+(1
,1'28%7$/:$<65()(57+(0727+(,521&2/2*,67
,V WKHUH DQ\ FRQIOLFW EHWZHHQ 3ODTXHQLO IRU UKHXPDWRLG DUWKULWLV DQG RXU
VXSSOHPHQWV"
1RSUREOHPZKDWVRHYHUZLWKWKH3ODTXHQLODQGRXUVXSSOHPHQWV
+RZLVWKHSDQFUHDVDIIHFWHGE\$O]KHLPHU"
:HFDQ¶WVWDWHWKDW$O]KHLPHULVGLUHFWO\UHODWHGWRSDQFUHDWLFIXQFWLRQDOWKRXJKDORW
RI HYLGHQFH FRUUHODWHV GLHW WR WKLV GLVHDVH7KHUH DUH PDQ\ PHFKDQLVPV LQYROYHG
KHUH FKURQLF LQIODPPDWLRQ DFLG EDVH EDODQFLQJ *O\FDWHG SURWHLQV DND
$*(
V SURWHLQ WDUJHWLQJ HWF %RWK LQVXOLQ DQG JOXFDJRQ DUH SURGXFHG E\ WKH
SDQFUHDVDQGWKHVH KRUPRQHVDUHLQWLPDWHO\LQPDQ\RIWKHVHSURFHVVHVVRLQWKDW
VHQVH\RXFRXOGPDNHDFRQQHFWLRQ
+RZORQJVKRXOGLWWDNHIRUDVR\UDVKWRJRDZD\"6KRXOGWKH\SXWDQ\WKLQJ
RQLW"1RWLWFKLQJMXVWUHGUDVK
,I LW
V D WUXH DOOHUJ\ GR QRW XVH D WRSLFDO DQWLKLVWDPLQH FUHDP OLNH %HQDGU\O
WKLV ZRQ
W SHQHWUDWH WKH VNLQ VXIILFLHQWO\ WR KDYH DQ HIIHFW $ SHUVRQ &$1 WDNH DQ
RUDO DQWLKLVWDPLQH LH %HQDGU\O PJV RQH FDSVXOH HYHU\ KRXUV PD\ FDXVH
GURZVLQHVVRUPJV&KORUWULPHWRQWDEOHWVDWEHGWLPHWKLVVKRXOGKHOSZLWKLQD
GD\RUWZR<RXPD\DOVRWU\K\GURFRUWLVRQHFUHDPDSSOLHGWRWKHUDVKEXW'2
127XVHLWQHDUWKHH\HV,IWKLVGRHVQRWUHVROYHZLWKLQDZHHNWKHSHUVRQVKRXOG
VHH D GHUPDWRORJLVW DV LW
V SUREDEO\ QRW DQ DOOHUJ\ LI VKH KDV DYRLGHG WKH VXVSHFW
DOOHUJHQWKURXJKRXWWKHWLPHSHULRG
2QHRIP\GLHWHUVKDVEHHQRQWKHSURWRFROZHHNVDQGVKHZDVGLDJQRVHG
ZLWK D 87, %XW DV LW WXUQV RXW LW ZDV QRW DQ LQIHFWLRQ %XW KHU XULQH ZDV
VKRZLQJ YHU\ DFLGLF ZKHQ WKH\ GLG WHVW LW 6KH VDLG LW EXUQV DIWHU VKH
XULQDWHV
7KH UHDVRQ KHU XULQH LV VR DFLGLF LV WKDW VKH
V VSLOOLQJ RXW D ORW RI NHWRQH ERGLHV
ZKLFKPHDQVVKH
VUHDOO\LQWKHIDWEXUQLQJ]RQH7RUHOLHYHWKHEXUQLQJKDYHKHU
VTXHH]HWKHMXLFHRIOHPRQLQSLQWRIZDWHUDQGGULQNRIWKHVHSHUGD\LH
OLWHUV 1H[W WHOO KHU WR SXW WHDVSRRQIXO RI EDNLQJ VRGD LQ R] RI ZDWHU DQG
GULQN WKLV EHWZHHQ EUHDNIDVW DQG OXQFK DQG DQRWKHU GRVH EHIRUH VKH JRHV WR EHG
6KRXOG WKH EXUQLQJ SHUVLVW DGG D WKLUG GRVH EHWZHHQ OXQFK DQG VXSSHU $OO RI WKLV
ZLOOEULQJWKHXULQDU\S+LQWRWKHUDQJHDQGWKHEXUQLQJZLOOVWRS7KLVWULFNLV
DOVR JRRGWRUHFRPPHQGWR GLHWHUVZKR RQWKHLU+HDOWK 3URILOH KDYH LQGLFDWHGWKH\
KDYHKDGNLGQH\VWRQHVRUJRXWLQWKHSDVW,IVKHQHHGVWZRGRVHVRIWKHWVSRI
EDNLQJVRGDVKHSUREDEO\VKRXOGFXWEDFNRQKHUVDOWDVEDNLQJVRGDFRQWDLQVTXLWH
DELWRIVRGLXP
,V LQIODPPDWLRQ UHGXFHG EHFDXVH RI WKH DONDOLQH GLHW RU EHFDXVH RI WKH
UHGXFWLRQLQH[FHVVLQVXOLQRUERWK"
7KHDQWLLQIODPPDWRU\DVSHFWVRIRXUSURJUDPDUHPRVWOLNHO\GXHWRUHGXFHGLQVXOLQ
OHYHOV DQG LQFUHDVHG OHYHOV RI JOXFDJRQ LQVXOLQ
V RSSRVLWH $GGLQJ RPHJD RLOV LV
DOVRYHU\KHOSIXOZLWKUHVSHFWWRLQIODPPDWLRQ
+DYH\RXKHDUGRIDQ\RQHKDYLQJDUHDOO\KDUGWLPHZLWKKHDUWEXUQ",KDYH
DFOLHQWZKRLVKDYLQJLWGDLO\DQGGLGQRWFRQWLQXHWKHSURJUDP
1RWKLVLVXQXVXDO7\SLFDOO\*(5'KHDUWEXUQFOHDUVXSZLWKLQGD\V0D\EHWU\
DGGLQJRXUHQ]\PHVZLWKHDFKPHDO
, KDYH D \HDUROG IHPDOH RQ SURJUDP IRU ZHHNV 6KH ZHLJKHG OEV
DQGQRZVKHLVDWOEV6KHLVRQPJ3UR]DFPJ7UD]DGRQHVOHHS
8OWUDP PJ /RGLQH PJ ILEUR 6KH
V FRPSODLQLQJ RI QR HQHUJ\ DQG
QXPEQHVVLQILQJHUV6KHZDQWHGWRNQRZLILWZDVGLHWUHODWHG
7KLV LV QRW SURWRFRO UHODWHG 2XU SURWRFRO VKRXOG JUHDWO\ LPSURYH KHU SDLQ DV LW LV
YHU\DQWLLQIODPPDWRU\DQGZHKDYHPDQ\ILHOGWHVWLPRQLDOVWREDFNWKLVXS
3UR]DFDQG7UD]DGRQHLQFUHDVHVHURWRQLQE\GLIIHUHQWPHFKDQLVPV$GGLQJ8OWUDPWR
WKLV FDQ EH D OLWWOH GDQJHURXV DV LW FDQ FDXVH D FRQGLWLRQ NQRZQ DV 6HURWRQLQ
6\QGURPHZKLFKFRXOGFDXVHQHXURSDWK\QXPEQHVVWLQJOLQJFRXOGEHV\PSWRPV
:H UHFRPPHQG VKH VHHV KHU GRFWRU WR VWRS WKH 7UD]DGRQH DQG 8OWUDP IRU D ZKLOH
DQGXVHDQRWKHUFODVVRIVOHHSDLGLIWKDWLVDEVROXWHO\QHFHVVDU\
0\ SDWLHQW KDV EHHQ RQ WKH SURJUDP VLQFH -DQXDU\ DQG WRWDOO\
FRPSOLDQW,Q $SULO VKH KDGQ¶W ORVW SRXQG DQG KDV QRW FKHDWHG
DOWKRXJK VKH ORVW SRXQGV IURP -DQXDU\ WR 0DUFK 6KH KDVQ
W EHHQ
GULQNLQJWKHZDWHUOLNH VKHVKRXOG6KHDOVRWDNHV0HWIRUPLQPJGDLO\
LQWKHPRUQLQJEXWVKHLVQRWGLDEHWLF+HUQXUVHSUDFWLWLRQHUJDYHLWWRKHU
EHIRUHVKHVWDUWHGWKHSURJUDP
0HWIRUPLQ LV JLYHQ WR GLDEHWLFV 7\SH ,, WR SUHYHQW WKH UHOHDVH RI JO\FRJHQ GXULQJ
WKH QLJKW 7\SLFDOO\ DV \RX VOHHS IDVW \RXU EORRG VXJDU GURSV DQG LQ RUGHU WR
PDLQWDLQ QRUPDO EORRG VXJDU OHYHOV WKH OLYHU UHOHDVHV VRPH RI LWV VWRUHG JO\FRJHQ
$VWKHEORRGJOXFRVHOHYHOWKHQULVHVWKHSDQFUHDVVHFUHWHVVRPHLQVXOLQDQGLQVXOLQ
WHOOV WKH OLYHU WR VWRS UHOHDVLQJ JO\FRJHQ EDVLFDOO\ LW VD\V 2. JRW HQRXJK VXJDU
QRZ\RXFDQVWRSSXWWLQJPRUHRXW,QDQLQVXOLQUHVLVWDQW SDWLHQWOLNHD7\SH,,
WKHOLYHUGRHVQ
WOLVWHQWRLQVXOLQDQ\PRUHDQGLWNHHSVGXPSLQJRXWWKHJO\FRJHQ
7KHQ WKH SDWLHQW JHWV XS LQ WKH PRUQLQJ DQG FKHFNV WKHLU EORRG VXJDU DQG LWV ZD\
KLJK 7KH\ DUH SX]]OHG DQG WKLQN ³, KDYHQ¶W HDWHQ DQ\WKLQJ LQ KRXUV KRZ
FRXOGWKLVEH"´
:KHQ0HWIRUPLQLVXVHGWRORVHZHLJKWLWDJDLQEORFNVWKHUHOHDVHRIJO\FRJHQVRLI
WKH ERG\ QHHGV PRUH JOXFRVH LW PXVW EUHDN GRZQ IDW DQG PXVFOH /LSRORO\VLV DQG
4OXFRQHRJHQHVLV
6KH VKRXOG VWRS WKH 0HWIRUPLQ DQG '5,1. +(5 :$7(5 <RX QHHG ZDWHU WR
WUDQVIRUP WKH IDW WULJO\FHULGHV LQWR IUHH IDWW\ DFLGV DQG JO\FHULQ 1RW GULQNLQJ
HQRXJKZLOOVORZWKHIDWEXUQLQJSURFHVVZD\GRZQ$OVRVKHQHHGVWRPDNHDWOHDVW
D OLWHU DQG RI XULQH SHU GD\ VR DV WR SUHYHQW WKH DFFXPXODWLRQ RI DFLG DJDLQ
VORZLQJGRZQWKHIDWEXUQLQJSURFHVVDQGPDNLQJKHUOLNHO\WRJHWDXULFDFLGVWRQH
LQKHUNLGQH\RUJRXW
)LQDOO\ WHOO KHU WR GR D ZHHN KDUGFRUH &RQVXPH RQO\ WKH ³5RFNHW )XHO´ IRRGV
GULQNV VRXSV DQG SXGGLQJV QR UHVWULFWHG IRRGV (QVXUH VKH HDWV KHU YHJHWDEOHV
DQGKDVDERZHOPRYHPHQWHDFKGD\DQGGULQNVWKH0,1,080RIOLWHUVRIZDWHU
6KHVKRXOGKDYHUHVXOWVLQDZHHN
, KDYH D QHZ FOLHQW WKDW KDV EHHQ WROG WKDW KHU EORRG OHYHOV DUH SRLQWVKLJKIRUFDOFLXP6KHKDVEHHQWROGE\0'QRWWRWDNHFDOFLXP1RWH
WKDW VKH GRHV KDYH FRPSODLQWV RI OHJ FUDPSV DQG FRQVWLSDWLRQ SULRU WR
VWDUWLQJWKHSODQ6RXQGVWRPHWKDWVKHPD\KDYHDQDEVRUSWLRQLVVXHEXW
, ZDV ZRQGHULQJ ZKDW \RX WKRXJKW DQG ZKDW VKRXOG , UHFRPPHQG RQ WKH
VXSSOHPHQWV"
6KH VKRXOG VWRS WKH &DO 0DJ EXW JHW D PDJQHVLXP VXSSOHPHQW 0DJB2; RQH
WDEOHW SHU GD\ LV D SURGXFW WKDW PDQ\ SK\VLFLDQV XVH 7KH GRFWRU VKRXOG UHSHDW
FDOFLXPOHYHOLQZHHNV
, KDYH D SHUVRQ ZLWK &URKQ
VGLVHDVH ZKR ZRXOG OLNH WRGR WKH SURWRFRO ,V
WKLVDFRQWUDLQGLFDWLRQ"$Q\VSHFLDOLQVWUXFWLRQV"
2XU SURWRFRO GRHV UHPDUNDEO\ ZHOO ZLWK WKHVH GLHWHUV MXVW GRQ
W VWDUW WKHP ZKHQ
WKH\ DUH KDYLQJ D IODUHXS )RU SDWLHQWV ZKR KDYH KDG ODUJH VHFWLRQV RI WKHLU
,QWHVWLQHV UHVHFWHG PD\EH KDYH WKH\ SXUHH WKHLU YHJHWDEOHV LI WKH\ QRWLFH
GLVFRPIRUW ZKHQ HDWLQJ WKHP , DOZD\V OLNH WR DGG OLTXLG ILVK RLO WR WKHLU VKDNHV
SHDFK PDQJR EDQDQD SLQHDSSOH RU WKH 3LQD &RODGD LQ D OHPRQ RU RUDQJH
IODYRU%DUOHDQ
V1RUGLF1DWXUDOVRU&DUOVRQ
VDUHJRRGEUDQGVDQGUHDGLO\DYDLODEOH
DWDQ\KHDOWKIRRGVWRUH7HOOWKHPWRNHHSWKHRLOUHIULJHUDWHGDIWHURSHQLQJ7KH\
VKRXOG PDNH WKH VKDNH WKHQ DGG DW OHDVW D WDEOHVSRRQ PO RU R] WR WKH
VKDNH WKHQ VKDNH LW DJDLQ +DYLQJ WKLV IRU EUHDNIDVW RU WKH HYHQLQJ VQDFN ZLOO JHW
WKHPRXWRILQIODPPDWLRQYHU\TXLFNO\XVXDOO\LQRQHZHHNDOVRZRUNVYHU\ZHOOIRU
SVRULDVLV0RVW&URKQ
VPHGVGRQ
WDIIHFWRXUSURWRFROEXWLIWKH\DUHRQ03
0HUFDWRSXULQH,ZRXOGVWURQJO\DGYLVHWKHPVWRSSLQJWKLVGUXJLW
VDFKHPRWKHUDS\
GUXJ DQG ZLOO VORZ GRZQ WKH KHDOLQJ RI WKHLU OHVLRQV 7KH $VDFRO RU 3HQWDVD DUH 2.
FRPPRQO\SUHVFULEHGIRUWKLV,DOVRKDYHVRPHYHU\VSHFLDOSURWHLQ
ZLWK
JUDPV RI JO\FRQXWULHQWV DQG ZH KDYH KDG SKHQRPHQDO VXFFHVV LQ RXU FOLQLF ZLWK
&URKQ
VXVLQJWKLVSURGXFW
:KDW HOVH EHVLGHV DGGLQJ VDOW FDQ \RX GR WR NHHS EORRG SUHVVXUH IURP
GURSSLQJ" ,KDYH D SDWLHQW ZKRVHEORRGSUHVVXUH QRUPDOO\ UXQV RQ WKH ORZ
VLGH
,I WKH EORRG SUHVVXUH LV QRUPDOO\ RQ WKH ORZ VLGH DQG WKH SDWLHQW GRHVQ
W KDYH DQ\
V\PSWRPVLHGL]]LQHVVKHDGDFKHVIDWLJXHWKHQWKHUH
VQRSUREOHP7KLVSURWRFRO
ZLOO QRW FDXVH ORZ EORRG SUHVVXUH LI WKH\ DUH WDNLQJ WKH VHD VDOW GULQNLQJ $// WKHLU
ZDWHUDQG KDYH DQ\ %3 PHGV DGMXVWHG RU GLVFRQWLQXHG ,I D SHUVRQ KDV UHDOO\ ORZ
%3WKH0'
VXVXDOO\ORRNDWWK\URLGIXQFWLRQDQGDGUHQDOVXSSRUWLHVXSSOHPHQWLQJ
ZLWKWK\URLGKRUPRQHRUJLYLQJVRPHDGUHQDOFRUWLFRLGVOLNH)ORULQHI6XJJHVWWU\LQJ
DVRXSHYHU\GD\WKLVKHOSVHQVXUHHQRXJKVRGLXP
2QHSDWLHQWKDVQ
WKDGKLVEORRGSUHVVXUHGURSEXWKHKDVORVWSRXQGV
+HGRHVKDYHDERXWDQRWKHUWRJRDQGKHLVRQPHGLFDWLRQIRULW,VWKLV
QRUPDO"
, KDYH D GLHWHU ZKR LV D UDQFKHU DQG GRHV D ORW RI SK\VLFDO ODERU HDFK GD\
\HDUVROGVPRNHUSDFNV GDLO\DOFRKROLFELSRODU DQGK\SRJO\FHPLF
+H KDV EHHQ RQ WKH SURJUDP IRU ZHHNV LQWHUHVWLQJ KDVQ¶W WRXFKHG D
GURS RI DOFRKRO ± QR ZLWKGUDZDO DQG ORRNV JUHDW ± KH KDV ORVW OEV DQG
LQFKHV+H¶VDWOEVDQGKDVDQRWKHUOEVWRJR+H¶VKDYLQJ9(5<
ORZ HQHUJ\ DQG /2: EORRG SUHVVXUH &XUUHQWO\ WDNHV PJ [GD\ RI
/LWKLXP :KDW ZRXOG \RX UHFRPPHQG IRU WKH ORZ EORRG SUHVVXUH" ,Q WKH
SURJUDPZKDWZRXOGFDXVHWKHORZ%3":KDWDERXWWKHORZHQHUJ\"
2XU SURWRFRO GRHVQ
W FDXVH ORZ EORRG SUHVVXUH EXW LI WKH\ DUHQ
W WDNLQJ LQ WKH VDOW
DQG ZDWHU WKHLU SUHVVXUHV ZLOO IDOO K\SRQDWXUHPLD ORZ VRGLXP DQG RU K\SR
YROHPLDORZ EORRG YROXPH ,W ORRNV OLNH KH
V 2. KHUH 7KH RQO\ RWKHU WKLQJ WKDW
FDXVHVIDWLJXHORZ%3LVFKHDWLQJLQWHQWLRQDOO\RUXQLQWHQWLRQDOO\PDNHVXUHWR
VFUXWLQL]HKLVZHHNO\PHDOGLDU\ORRNLQJIRUVRXUFHVRIFDUERK\GUDWHV
+H VKRXOG KDYH D OLWKLXP OHYHO GUDZQ /LWKLXP DQG VRGLXP DUH LQYHUVHO\ UHODWHG
7KDW LV LI WKH VRGLXP OHYHO JHWV WRR KLJK WKH OLWKLXP JRHV GRZQ DQG YLFHYHUVD ,I
WKHOLWKLXPJHWVDOLWWOHWRRKLJKQRWHQRXJKVRGLXPKHPD\EHVZHDWLQJDORWRXW
GRLQJDOOWKDWSK\VLFDOODERUKH
OOJHWEDGVLGHHIIHFWVOLNHWLUHGQHVVFRQIXVLRQHWF
+LJKEORRGSUHVVXUHFDQVWHPIURPDFRXSOHRIGLIIHUHQWFDXVHV7KHPRVWFRPPRQ
RQH ZH UXQ LQWR GHDOLQJ ZLWK 6\QGURPH ;HU
V LV IOXLG RYHUORDG ,QVXOLQ WHOOV WKH
NLGQH\V WR UHWDLQ VRGLXP KHQFH ZDWHU WRR DQG ZDVWH PDJQHVLXP DQG SRWDVVLXP
:KHQ ZH FXW WKH FDUERK\GUDWHV GUDVWLFDOO\ ZH DOVR FXW WKH LQVXOLQ GUDVWLFDOO\ WRR
1RZWKHNLGQH\VIXQFWLRQSURSHUO\DQGWKHSDWLHQWH[SHULHQFHVDWUHPHQGRXVGLXUHVLV
XVXDOO\ E\ GD\ 7KHVHDUHWKH GLHWHUVWKDWZLOOORVHRYHU OEVWKHILUVWZHHN
LW
VQRWDOOIDWLW
VDOOWKLVIOXLGWKH\
YHEHHQVWRULQJ,IWKH\DUHRQ5[GLXUHWLFVZH
XVXDOO\ KDYHWR GLVFRQWLQXHWKHPRUDW OHDVWFXWGRZQWKH GRVH6RPHRWKHUV KDYH
LQFUHDVHG SHULSKHUDO YDVFXODU UHVLVWDQFH 7KH\ KDYH KLJK V\PSDWKHWLF WRQH DV WKH
DGUHQDOVDUHVWUHVVIURPVHFUHWLQJDGUHQDOLQHHSLQHSKULQHEHFDXVHRIELJVZLQJVLQ
WKHLUEORRGVXJDU7KHVHGLHWHUVZLOOVWUDLJKWHQRXWEXWLWWDNHVDOLWWOHELWORQJHU
$OVR KH PD\ KDYH VRPH EORFNDJHV LQ KLV DUWHULHV /RQJ WHUP WKDW VKRXOG LPSURYH
$Q\ZD\,ZRXOGH[SHFWKLV%3WRLPSURYHDVKHSURFHHGVRQWKHSURWRFRO
, KDYH D 'LHWHU ZKR KDV EHFRPH DQHPLF DQG KHU GRFWRU LV FRQFHUQHG WKDW
WKHSURWRFROPD\KDYHFDXVHGWKLV6KRXOG,SXWKHURQDQLURQVXSSOHPHQW
DVWKHUHLVQRLURQLQWKH,3VXSSOHPHQWV"
2XU SURWRFRO VKRXOG QRW FDXVH DQHPLD SURYLGLQJ WKH GLHWHU HDWV D YDULHW\ RI ZKROH
SURWHLQV DQG YHJHWDEOHV 7KH RQO\ FDVHV ZH KDYH VHHQ DUH ZLWK \RXQJ
SUHPHQRSDXVDO IHPDOH FOLHQWV ZKR DUH YHJHWDULDQ 'XULQJ WKH PHQVHV LURQ LV ORVW
DQGWKLVQHHGVWREHUHSOHQLVKHGWKURXJKKHUGLHW5HGPHDWDIHZWLPHVDZHHNRU
FDOYHV OLYHU ZKLFK KDUGO\ DQ\RQH HDWV DQ\PRUH VSLQDFK NDOH RU 6ZLVV FKDUG DUH
JRRGVRXUFHVRIGLHWDU\LURQ5HYLHZKHUGLHWDQGORRNIRULURQFRQWDLQLQJIRRGV<RX
PD\ DOVR ZDQW WR VXJJHVW KHU VWDUWLQJ YLWDPLQ & VXSSOHPHQWDWLRQ PJV WKUHH
WLPHV D GD\ DV WKLV ZLOO LQFUHDVH KHU DEVRUSWLRQ RI WKH GLHWDU\ LURQ 0DNH WKHVH
FKDQJHV WKHQ KDYH KHU EORRG ZRUN UHSHDWHG LQ DERXW ZHHNV 6KRXOG VKH VWLOO
SUHVHQWZLWKDQHPLDUHIHUKHUWRKHUSK\VLFLDQIRUVXSSOHPHQWDWLRQRUWRUXOHRXWD
SRVVLEOH *, EOHHG EODFN WDUU\ VWRROV RU WKH SUHVHQFH RI UHG EORRG LQ WKH VWRRO
FRXOGEHV\PSWRPVRIWKLV&KHFNDQ\5[PHGLFDWLRQDQGDVNLIVKHXVHVDVSLULQRU
DQ\ RWKHU DQWLLQIODPPDWRU\ PHGLFDWLRQ VXFK DV LEXSURIHQ RU QDSUR[HQ 7KHVH
DJHQWVIUHTXHQWO\FDQFDXVHEOHHGLQJLQWKH*,WUDFW
© Copyright 2025 Paperzz