! " # $ ! ! # % " &''() $ %* " $ " # + "
# + , -# +$ - , ) #+ - ! " #. - * " # . - " # . - * #+ - "
- - #
/#0 0 &'11 " #2 3(('
#/ 3(&4 / - 5 " #/# &'16 7+ #8 " #2 3((1 2 %5 " #/ 3(&4 5 " #
2" % 5 " #
! " #$% "&
! " # $ !% ! & $ ' ' ($ ' # % % ) % * %
' $ ' + " % & ' !# $,
( $ - . ! "- ( % . % % % % $ $ $ - - - -
// $$$ 0 1"1"#23." 4& )*5/ +)
678%99:::& %
2 ; ) -
* &
/- <+ + %" - " /- <7=:94& )*5/ +)
"3 " & 7=:9
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI
6HOHFWHG:RUHGDVRI*HGHR=RQHLQ6RXWKHUQ(WKLRSLD$SSUDLVDORI
/DZYLVjYLV3UDFWLFH
%\
.DVVLP .XIID //% //0 )RUPHU /HFWXUHU RI /DZ DW 'LOOD DQG $NVXP
8QLYHUVLWLHVDQGQRZ/HFWXUHUDW2URPLD6WDWH $UD\D$VJHGRP //%//0/HFWXUHURI/DZDW'LOOD8QLYHUVLW\ 'LOOD(WKLRSLD
ƒ„Ž‡‘ˆ‘–‡–•
ĐŬŶŽǁůĞĚŐĞŵĞŶƚ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯ
ZKED^͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰ
ďƐƚƌĂĐƚ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱ
ŚĂƉƚĞƌKŶĞ͗/ŶƚƌŽĚƵĐƚŝŽŶƚŽ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲ
ϭ͘ϭ͘ĂĐŬŐƌŽƵŶĚŽĨ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲ
ϭ͘Ϯ͘^ƚĂƚĞŵĞŶƚŽĨWƌŽďůĞŵ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϵ
ϭ͘ϯ͘KďũĞĐƚŝǀĞŽĨ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϰ
ϭ͘ϯ͘ϭ͘'ĞŶĞƌĂůKďũĞĐƚŝǀĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϰ
ϭ͘ϯ͘Ϯ͘^ƉĞĐŝĨŝĐKďũĞĐƚŝǀĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϱ
ϭ͘ϰ͘ZĞƐĞĂƌĐŚYƵĞƐƚŝŽŶƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϱ
ϭ͘ϱ͘DĞƚŚŽĚŽůŽŐLJŽĨ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϱ
ϭ͘ϱ͘ϭ͘^ŽƵƌĐĞƐŽĨĂƚĂ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϱ
ϭ͘ϱ͘Ϯ͘DĞƚŚŽĚŽĨĂƚĂŽůůĞĐƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϲ
$4XDQWLWDWLYH'DWD͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϲ
%4XDOLWDWLYH'DWD͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϲ
ϭ͘ϱ͘ϯ͘^ĂŵƉůĞ^ŝnjĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϲ
ϭ͘ϱ͘ϰ͘^ĂŵƉůŝŶŐƚĞĐŚŶŝƋƵĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϳ
ϭ͘ϱ͘ϱ͘DĞƚŚŽĚŽĨĂƚĂŶĂůLJƐŝƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϳ
ϭ͘ϲ͘^ĐŽƉĞŽĨ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϳ
ϭ͘ϳ͘>ŝŵŝƚĂƚŝŽŶƐŽĨƚŚĞ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϳ
ϭ͘ϴ͘^ŝŐŶŝĨŝĐĂŶĐĞŽĨ^ƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϴ
ϭ͘ϵ͘KƌŐĂŶŝnjĂƚŝŽŶŽĨƚŚĞƐƚƵĚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϴ
ŚĂƉƚĞƌdǁŽ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϵ
Ϯ͗dŚĞŽŶĐĞƉƚƵĂů&ŽƵŶĚĂƚŝŽŶƐŽĨƚŚĞtŽŵĞŶ͛ƐĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚĂŶĚ/ƚƐWƌŽƚĞĐƚŝŽŶƵŶĚĞƌ/ŶƚĞƌŶĂƚŝŽŶĂů,ƵŵĂŶ
ZŝŐŚƚ/ŶƐƚƌƵŵĞŶƚƐĂŶĚŽŵĞƐƚŝĐ>ĂŶĚ>ĂǁƐŽĨƐŽŵĞŽƵŶƚƌŝĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϵ
Ϯ͘ϭ͘ŽŶĐĞƉƚƐŽĨWƌŽƉĞƌƚLJ͕>ĂŶĚZŝŐŚƚƐĂŶĚĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϵ
Ϯ͘Ϯ͘ZĂƚŝŽŶĂůĞĨŽƌWƌŽƚĞĐƚŝŽŶŽĨ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϮϬ
Ϯ͘ϯ͘tŽŵĞŶΖƐZĞƐƚƌŝĐƚĞĚ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϮϮ
Ϯ͘ϰ͘WƌŽƚĞĐƚŝŽŶĂŶĚŶĨŽƌĐĞŵĞŶƚŽĨ>ĂŶĚZŝŐŚƚƐƵŶĚĞƌ/ŶƚĞƌŶĂƚŝŽŶĂů,ƵŵĂŶZŝŐŚƚ/ŶƐƚƌƵŵĞŶƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯ ϯ
Ϯ͘ϰ͘ϭ͘/ŶƚĞƌŶĂƚŝŽŶĂů,ƵŵĂŶZŝŐŚƚƐ^ƚĂŶĚĂƌĚƐĨŽƌ>ĂŶĚĂŶĚWƌŽƉĞƌƚLJZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϯ
Ϯ͘ϰ͘Ϯ͘/ŵƉůĞŵĞŶƚŝŶŐ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϲ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWs
Ϯ͘ϱ͘džƉĞƌŝĞŶĐĞŽĨKƚŚĞƌŽƵŶƚƌŝĞƐ͛>ĂŶĚ>ĞŐŝƐůĂƚŝŽŶ͕WŽůŝĐLJ͕ĂŶĚZĞĨŽƌŵ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϴ
Ϯ͘ϱ͘ϭ͘^ƵƌǀĞLJŽĨŽƵŶƚƌŝĞƐ͛>ĂŶĚ>ĞŐŝƐůĂƚŝŽŶdžƉĞƌŝĞŶĐĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϴ
Ϯ͘ϱ͘Ϯ͘ŽŵŵŽŶZĂƚŝŽŶĂůĞƐĨŽƌ&ĂŝůƵƌĞŽĨ>ĞŐŝƐůĂƚŝŽŶƐŽŶtŽŵĞŶ͛ƐZŝŐŚƚƐƚŽ>ĂŶĚŝŶKƚŚĞƌŽƵŶƚƌŝĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϮ
Ϯ͘ϲ͘&ĂĐƚŽƌƐ,ŝŶĚĞƌŝŶŐtŽŵĞŶΖƐĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϰ
Ϯ͘ϳ͘dŚĞDĞĐŚĂŶŝƐŵŽĨĐƋƵŝƐŝƚŝŽŶĂŶĚ>ŽƐĞŽĨ>ĂŶĚZŝŐŚƚƐďLJtŽŵĞŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϳ
,WdZd,Z͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϵ
ϯ͘tKDE͛^^^dK>EZ/',d^hEZd,/KW/E>E>t^͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϵ
ϯ͘ϭ͘/ŶƚƌŽĚƵĐƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϵ
ϯ͘Ϯ͘tŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐƵŶĚĞƌ&Z>ĞŐŝƐůĂƚŝŽŶƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϬ
ϯ͘ϯ͘tŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐƵŶĚĞƌ^EEWZ^>ĂŶĚ>Ăǁ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϭ
ϯ͘ϰ͘>ĂŶĚŝƐƉƵƚĞZĞƐŽůƵƚŝŽŶ^LJƐƚĞŵƵŶĚĞƌ^EEWZ^WƌŽĐ͘EŽ͘ϭϭϬͬϮϬϬϳĂŶĚ/ƚƐ/ŵƉĂĐƚŽŶtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚ
ZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϱ
ϯ͘ϱ͘/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨtŽŵĞŶ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϲ
ϯ͘ϱ͘ϭ͘/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨtŽŵĞŶ>ĂŶĚZŝŐŚƚƐhŶĚĞƌ^EEWZ^>ĂŶĚWƌŽĐ͘EŽ͘ϭϭϬͬϮϬϬϳ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϲ
ϯ͘ϱ͘Ϯ^EEWZ^ZƵƌĂů>ĂŶĚĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚhƐĞZĞŐƵůĂƚŝŽŶEŽ͘ϲϲͬϮϬϬϳ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϲ
ϯ͘ϱ͘ϯ͘ƌŝƚŝĐĂůŶĂůLJƐŝƐŽĨtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐƵŶĚĞƌ^EEWZ^ZƵƌĂů>ĂŶĚĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚhƐĞZĞŐƵůĂƚŝŽŶ
EŽ͘ϲϲͬϮϬϬϳ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϳ
ŚĂƉƚĞƌ&ŽƵƌ͗WƌĞǀĂŝůŝŶŐWƌĂĐƚŝĐĞŽĨtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐŝŶ^EEWZ^ŽĨƚŚŝŽƉŝĂ͗ĂƐĞŽĨ'ĞĚĞŽŽŶĞ͘͘͘͘͘͘͘͘͘͘͘͘ϱϬ
ϰ͘ϭ͘/ŶƚƌŽĚƵĐƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱϬ
ϰ͘Ϯ͘WĞƌƐŽŶĂůĞŵŽŐƌĂƉŚŝĐŚĂƌĂĐƚĞƌŝƐƚŝĐƐŽĨƚŚĞZĞƐƉŽŶĚĞŶƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱϬ
ϰ͘ϯ͘džƚĞŶƚŽĨtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐŝŶ'ĞĚĞŽŽŶĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱϮ
ϰ͘ϰ&ĂĐƚŽƌƐ,ŝŶĚĞƌŝŶŐtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱϴ
ϰ͘ϱ͘dŚĞdƌĞŶĚƐŽĨtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐĂŶĚ/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨǁŽŵĞŶůĂŶĚƌŝŐŚƚƐŝŶƚŚĞƐƚƵĚLJĂƌĞĂ͘͘͘͘͘͘͘͘͘ϲϬ
ϰ͘ϱ͘ϭ͘dƌĞŶĚƐŽĨtŽŵĞŶĐĐĞƐƐdŽ>ĂŶĚZŝŐŚƚƐ/ŶƚŚĞ^ƚƵĚLJƌĞĂ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϬ
ϰ͘ϱ͘Ϯ͘dŚĞŶĂůLJnjŝŶŐƚŚĞWĂƚƚĞƌŶŽĨŶĨŽƌĐĞŵĞŶƚŽĨǁŽŵĞŶ>ĂŶĚZŝŐŚƚƐŝŶƚŚĞ^ƚƵĚLJƌĞĂ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϭ
ϰ͘ϱ͘ϯ͘/ŵƉĂĐƚŽĨƵƐƚŽŵĂƌLJ>ĂǁŽŶtŽŵĞŶĐĐĞƐƐƚŽ>ĂŶĚZŝŐŚƚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϰ
ŚĂƉƚĞƌ&ŝǀĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϬ
ϱ͘ŽŶĐůƵƐŝŽŶĂŶĚZĞĐŽŵŵĞŶĚĂƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϬ
ϱ͘ϭ͘ŽŶĐůƵƐŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϬ
ϱ͘Ϯ͘ZĞĐŽŵŵĞŶĚĂƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϯ
ŝďůŝŽŐƌĂƉŚLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϰ
ƉƉĞŶĚŝdž͗͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϳ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWt
ĐŬŶŽǁůĞĚŐĞŵĞŶƚ
)LUVW RI DOO DXWKRUV SD\ RXU ZKROH KHDUWHG JUDWLWXGH WR WKH $OPLJKW\ *2' WKDW HQGRZHG
PDQNLQG ZLWK DQ LQQDWH DELOLW\ WR UHFRJQL]H DQG DFNQRZOHGJH +LV H[FHOOHQFH :LWKRXW KLV
JUDFHDQGZLVKDXWKRUVZLOOQRWEHKHUHZKHUHZHDUHQRZDQGREYLRXVO\WKLVZRUNFDQQRWEH
FRPSOHWHGVXFFHVVIXOO\
$IWHU WKDW DXWKRUV ZRXOG OLNH WR H[WHQG RXU KHDUWIHOW JUDWLWXGH WR PDQ\ LQGLYLGXDOV DQG
LQVWLWXWLRQV 6RPH RI WKHP GHVHUYH VSHFLDO PHQWLRQ )LUVW ZH ZRXOG OLNH WR H[WHQG RXU
UHVSHFWIXO JUDWLWXGH WR 'LOOD 8QLYHUVLW\ IRU LWV XQUHVHUYHG DQG SULFHOHVV PDWHULDO DQG PRUDO
VXSSRUW$XWKRUVDUHDOVRLQGHEWHGWRH[WHQGVSHFLDOWKDQNVWR0U%LVUDW0XOXJHWD+XQHJQD
7HVID\H$PDUD7HVID\HDQGRWKHU'LOODXQLYHUVLW\ODZVFKRROVWDIIV%HVLGHVZHRZHVSHFLDO
WKDQNVWRWKRVHZKRKHOSHGXVZLWKGDWDFROOHFWLRQDQGDGGLWLRQDOPRUDODQGPDWHULDOVXSSRUW
DOWKRXJKLWLVLPSRVVLEOHWRPHQWLRQWKHLUQDPHGXHWRODFNRIVSDFH
/DVWEXWE\QRPHDQVWKHOHDVWDXWKRUVDUHGHHSO\LQGHEWHGWRRXUIDPLO\ZKRKDVVWUXJJOHG
RYHUWKH\HDUVIRUDFXUUHQWEULJKWHUOLIHDQGVXSSRUWHGXVWRZDUGWKHFRPSOHWLRQRIWKLVZRUN
.DVVLP.XIID
$UD\D$VJHGRP
$SULO'LOOD(WKLRSLD
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWu
,&&35±,QWHUQDWLRQDO&RQYHQWLRQRQ&LYLODQG3ROLWLFDO5LJKWV
8'+58QLYHUVDO'HFODUDWLRQRQ+XPDQ5LJKWV
3URF3URFODPDWLRQ
6113566RXWK1DWLRQV1DWLRQDOLWLHVDQG3HRSOHV5HJLRQDO6WDWHV
*73*URZWKDQG7UDQVIRUPDWLRQ3ODQ
3$6'(33URJUDPIRU$FFHOHUDWHGDQG6XVWDLQDEOH'HYHORSPHQWWR(QG3RYHUW\
6'3536XVWDLQDEOH'HYHORSPHQWIRU3RYHUW\5HGXFWLRQ3URJUDP
&('$:&RQYHQWLRQRQ(OLPLQDWLRQRI$OO)RUPVRI'LVFULPLQDWLRQDJDLQVW:RPHQ
)'5()HGHUDO'HPRFUDWLF5HSXEOLFRI(WKLRSLD
5%$5'5HJLRQDO%XUHDXRI$JULFXOWXUHDQG5XUDO'HYHORSPHQW
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWv
„•–”ƒ –
&RQFHSWRI(TXDOLW\RISURSHUW\ULJKWVRIPHQDQGZRPHQLQJHQHUDODQGHTXLYDOHQWDFFHVVLELOLW\RIODQGULJKWVIRUERWK
VH[HVLVUHFRJQL]HGXQGHUYDULRXVLQWHUQDWLRQDOKXPDQULJKWVFRQYHQWLRQVDQGWKHQDWLRQDOOHJLVODWLRQVRIDOPRVWHYHU\
QDWLRQLQFOXGLQJ(WKLRSLD$FFRUGLQJO\WKH(WKLRSLDQQDWLRQDODQGUHJLRQDOODQGOHJLVODWLRQVFOHDUO\UHFRJQL]HHTXDOLW\
RIWKHPHQDQGZRPHQLQWKHXWLOL]DWLRQRIODQGULJKWV'HVSLWHHIIRUWVE\JRYHUQPHQWVLQFH¶VWKURXJKGHVLJQDWLRQRI
JHQGHU SROLFLHV UDWLILFDWLRQ RI KXPDQ ULJKWV FRQYHQWLRQV LQFRUSRUDWLRQ RI ZRPHQ ULJKWV WR ODQG XQGHU GLIIHUHQW
OHJLVODWLRQVLQFOXGLQJ)'5(&RQVWLWXWLRQDQGRIILFLDOGRFXPHQWIRUSODQRIDFWLRQWRLQWHJUDWHZRPHQLQGHYHORSPHQWDO
SROLFLHVRIFRXQWU\WKHVLWXDWLRQRIZRPHQDFFHVVWRODQGULJKWLVQRWLPSURYHGLQUXUDO(WKLRSLDLQFOXGLQJVWXG\DUHD
GXH WR YDULRXV UHDVRQV 7KXV WKLV ZRUN DLPV WR H[DPLQH WKH SDWWHUQ RI ZRPHQ¶V DFFHVV WR ODQG ULJKWV LQ 6RXWKHUQ
(WKLRSLD$GGLWLRQDOO\WKLVZRUNSODQVWRLQYHVWLJDWHWKUHHVSHFLILFREMHFWLYHVLQFOXGLQJH[SORULQJWKHH[WHQWRIZRPHQ¶V
DFFHVVWRODQGULJKWVWKHSUDFWLFHRIWKHLPSOHPHQWDWLRQRIWKHODQGULJKWVDQGEDUULHUVWKDWKLQGHUZRPHQ¶VDFFHVVWR
ODQGULJKWVLQWKHVWXG\DUHD
7RDFKLHYHWKHSXUSRVHRIWKHVWXG\WKHUHVHDUFKHUVSUHIHUWKHFRPELQDWLRQRIERWKTXDQWLWDWLYHDQGTXDOLWDWLYHUHVHDUFK
PHWKRGVEHFDXVHVXFKWHFKQLTXHVKDYH DQDELOLW\WRH[SRVHWKHH[WHQWRIZRPHQ¶VDFFHVVWRODQGULJKWVLQWHUDFWLRQRI
VWDWXWRU\ODZDQGFXVWRPDU\ODQGKROGLQJSUDFWLFHVE\DQDO\VLVRITXDQWLWDWLYHGDWDJDWKHUHGIURP>VHOHFWHGZRUHGDVRI
*HGHR=RQHLQ6RXWKHUQ(WKLRSLD@3ULPDU\GDWDVHWVIRUVWXG\KDYHEHHQODQGODZV+XPDQ5LJKWWUHDWLHVSROLFLHVDQG
GDWDFROOHFWHGWKURXJKVHPLVWUXFWXUHGLQWHUYLHZDQGTXHVWLRQQDLUHJXLGHOLQHIRUSXUSRVHO\VHOHFWHGSHUVRQVIURPPRUH
WKDQUXUDOUHVSRQGHQWVZKHUHDVVHFRQGDU\VRXUFHVDUHERRNVMRXUQDOVDQGHWF7KHGDWDZDVFROOHFWHGIURPWKHVH
UHVSRQGHQWV LQ UHODWLRQ WR ZRPHQ¶V DFFHVV WR ODQG ULJKWV FRYHULQJ GLIIHUHQW LVVXHV XVLQJ QRQSUREDELOLW\ VDPSOLQJ
VWUDWHJLHVLHFRPELQDWLRQRISXUSRVLYHVDPSOLQJDQGVQRZEDOOVDPSOLQJ7KHDQDO\VLVRIWKHUHOHYDQWODZVDQGWUHDWLHV
VKRZVWKDWERWKUHOHYDQWLQWHUQDWLRQDO+XPDQ5LJKWLQVWUXPHQWVDQGWKH(WKLRSLDQ/DQGODZDUHLQDGHTXDWHWRPDLQWDLQ
ZRPHQ HTXDO DFFHVV WR ODQG ULJKWV LQ WKH VWXG\ DUHD 6WXG\ DOVR IRXQG WKDW ZRPHQ KDYH OHVV DFFHVV WR ODQG ULJKWV
FRPSDUHGWRPHQEHFDXVHLPSOHPHQWLQJPHFKDQLVPVDUHHLWKHUDEVHQWRUZHDNHURUWUDGLWLRQDOSUDFWLFHVUHOXFWDQFHRI
H[HFXWLYHERGLHVOHVVDZDUHQHVVRIZRPHQDQGHFRQRPLFGHSHQGHQF\RIZRPHQWKDWSHUSHWXDWHJHQGHULQHTXDOLWLHV
$FFRUGLQJO\ WKH DXWKRUV VXJJHVW WKDW WKH QHHG WR UHFWLI\ WKH OHJDO JDSV DQG SUDFWLFDO SUREOHPV LQGLFDWHG E\ VWXG\
UHJDUGLQJ ZRPHQ DFFHVV WR ODQG ULJKWV EDVHG RQ RWKHU FRXQWULHV¶ VWURQJ ODQG ULJKWV HQIRUFHPHQW PHFKDQLVPV
LQFRUSRUDWHGLQWKHODZV)XUWKHUPRUHWKHDXWKRUVDUJXHWKDW(WKLRSLDQOHJLVODWXUHLQFOXGLQJWKH611356FRXQFLOKDV
WRUHILQHODQGOHJLVODWLRQVLQFOXGLQJDGHTXDWHHQIRUFHPHQWRUJDQVDQGPHDQVWRWDFNOHEDUULHUVWRZRPHQDFFHVVWRODQG
ULJKWVLQWKHVWXG\
<ĞLJǁŽƌĚƐ͗
tŽŵĞŶ͕ ^ŽƵƚŚĞƌŶ EĂƚŝŽŶ͕ EĂƚŝŽŶĂůŝƚLJ ĂŶĚ WĞŽƉůĞƐͬ^EEW͕ͬ 'ĞĚĞŽ ŽŶĞ͕ ĂĐĐĞƐƐ ƚŽ ůĂŶĚ
ƌŝŐŚƚƐ͕ ůĂŶĚ ůĞŐŝƐůĂƚŝŽŶƐ͕ ďĂƌƌŝĞƌƐ ƚŽ ĂĐĐĞƐƐŝďŝůŝƚLJ ŽĨ ůĂŶĚ ƌŝŐŚƚƐ͕ ĞdžƚĞŶƚ ŽĨ ůĂŶĚ ƌŝŐŚƚƐ͕
ƉƌŽƉĞƌƚLJƌŝŐŚƚƐ͕ŐĞŶĚĞƌŝŶƚĞŐƌĂƚŝŽŶĂŶĚůĂŶĚƌŝŐŚƚƐ͕ƉĂƚƌŝĂƌĐŚĂůůĂŶĚŚŽůĚŝŶŐƐ͘
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWw
Šƒ’–‡”‡ǣ –”‘†— –‹‘–‘–—†›
ͳǤͳǤƒ ‰”‘—†‘ˆ–—†›
/DQGULJKWVLQFOXGHRZQHUVKLSDQGXVXIUXFWRUXVHULJKWVERWKDVVRFLDWHGZLWKYDU\LQJGHJUHHVRIIUHHGRPWR
OHDVHEHTXHDWKRUVHOOWKHODQG/DQGULJKWVPD\DULVHIURPLQKHULWDQFHRQDQLQGLYLGXDORUMRLQWEDVLVIURP
JRYHUQPHQWWUDQVIHUVSXUFKDVHVHWFDQGWKH\PD\EHUHVWULFWHGE\VSHFLILFWHPSRUDORUVSDWLDOSDUDPHWHUV 3URWHFWLRQRIVXFKULJKWVGHSHQGVRQH[LVWHQFHRIVWURQJOHJLVODWLRQDQGHIIHFWLYHHQIRUFHPHQWPHFKDQLVPV
6LQFHVJRYHUQPHQWVLGHQWLILHGWKDWFXVWRPDU\ODZVPD\GLVFULPLQDWHDJDLQVWZRPHQLQPRVW7KLUG:RUOG
FRXQWULHV,WLVDUJXHGWKDW³ZRPHQDUHGHQLHGHTXDODFFHVVWRPHDQVRISURGXFWLRQVXFKDVODQGULJKWV´,Q
PDQ\ $IULFDQ FRXQWULHV DOWKRXJK DFFHVV WR ODQG ULJKWV UHGXFHV YXOQHUDELOLW\ WR KXQJHU DQG HQKDQFHV UXUDO
OLYHOLKRRGVZRPHQIDUPHUVOLPLWHGDFFHVVWRODQGRZQHUVKLSRUSRVVHVVLRQRIODQG
,QUXUDOVRFLHWLHVWKHODQGOHVVFLWL]HQVRUSHRSOHZLWKOHVVDFFHVVWRODQGULJKWVDQGWKRVHZLWKLQVHFXUHWHQXUH
ULJKWVW\SLFDOO\FRQVWLWXWHWKHSRRUHVW PRVWPDUJLQDOL]HGDQG YXOQHUDEOHJURXSV7KHULJKWVRIWKHVH JURXSV
LQFOXGLQJ ZRPHQ WHQG WR EH LQVLJQLILFDQW EHFDXVH RI OHVV SURWHFWLRQ DQG ODFN RI HQIRUFHPHQW RI UHFRJQL]HG
ULJKWVFRPSDUHGZLWKODQGULJKWVRIPHQ
)XUWKHUPRUHIHZZRPHQLQGHYHORSLQJFRXQWULHVKDYHVHFXUHDQGLQGHSHQGHQWULJKWVWRODQG ,QPRVWSODFHV
ZRPHQFDQQRWFXVWRPDULO\LQKHULWZHDOWKRUSURSHUW\LQFOXGLQJODQGDQGWKH\JHQHUDOO\SHUPLWWHGWRSRVVHVV
ODQG ULJKWV E\ WKHLU QDPH RQO\ IHZ ZRPHQ KDYH VXFK ULJKWV 0RUH FRPPRQO\ PDOH OLQHDJH LQKHULWDQFH
SUHGRPLQDWHVLQGHYHORSLQJFRXQWULHVDQGZRPHQREWDLQULJKWVWRODQGWKURXJKPHQZKRWHQGUHVWULFWZRPHQ
DFFHVVWRODQGULJKWVLQSUDFWLFH
7RHQKDQFHZRPHQUHVWULFWHGODQGULJKWVWKHLQWHUQDWLRQDOIDUPHUVPRYHPHQWKDVRIWHQXWWHUHGWKHQHHGIRUD
KXPDQ ULJKW WR ODQG SDUWLFXODUO\ IRU VXEVLVWHQFH IDUPHUV GHPRQVWUDWLQJ QRQH UHFRJQLWLRQ RI ODQG ULJKWV
LQWHUQDWLRQDOO\,QVWHDGDYDULHW\RIJHQHUDODQGVSHFLILFULJKWVDUHFRQWDLQHGZLWKLQKXPDQULJKWVLQVWUXPHQWV
5HNKD0HKUD :RPHQ/DQGDQG6XVWDLQDEOH'HYHORSPHQW,QWHUQDWLRQDO&HQWHUIRU5HVHDUFKRQ:RPHQS
,ELG
(QGHO\ - %
6WUDWHJLHV DQG SURJUDPPHV IRU ZRPHQ LQ $IULFD¶V DJULFXOWXUDO VHFWRU LQ
$OWHUQDWLYHVWUDWHJLHVIRU$IULFDS
,ELGS
*LWWLQJHU - 3 +RXVHKROG IRRG VHFXULW\ DQG WKH UROH RI ZRPHQ :RUOG %DQN 'LVFXVVLRQ
3DSHUQR:DVKLQJWRQ'&:RUOG%DQN
(QGHO\-% DERYHQRWHS
ϳ
/ďŝĚ͘
ϴ
5HNKD0HKUD DERYHQRWHS
ϵ
/ďŝĚ͘
,ELGS
0RQWJRPHU\:UD\:LWWHQ 7KH3URWHFWLRQRI/DQG5LJKWVLQ(WKLRSLD$IULND)RFXV9RO1USS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWx
,QVWUXPHQWVIRULQVWDQFH&('$:PHQWLRQZRPHQ¶VKXPDQULJKWVUHODWHGWRODQG RUWKHPRUHDPELJXRXV
ULJKWV OLNH ULJKW WR KRPH RU SURSHUW\ ZKLFK PD\ RU PD\ QRW LQFOXGH ODQG 7KH ULJKWV UHFRJQL]HG E\
LQWHUQDWLRQDO KXPDQ ULJKW LQVWUXPHQWV UHODWHG WR ODQG DUH LQ WKH QDWXUH RI PRUH JHQHUDO KXPDQ ULJKWV WR GXH
SURFHVVRIODZ HTXDOSURWHFWLRQRIODZDQGQRQGLVFULPLQDWLRQ,QRWKHUZRUGVWKHULJKWWRODQGDFTXLUHG
VKRXOG QRW EH WDNHQ ORVW RU GHQLHG ZLWKRXW GXH SURFHVV RI ODZ 7KXV VXFK LQWHUQDWLRQDO LQVWUXPHQWV GR QRW
DGGUHVVVSHFLILFZRPHQ¶VULJKWWRODQGOLNHDXWRQRPRXVULJKWWRKROGODQGWLWOHDQGWRHQMR\RWKHUODQGULJKWV
OLNHULJKWWRWUDQVIHUODQGULJKWVDQGULJKWWRLQKHULWKXVEDQG¶VODQGULJKWVRQGHDWKRIVSRXVH
,Q(WKLRSLDERWKE\LQFRUSRUDWLRQRILQWHUQDWLRQDODJUHHPHQWVLQWRGRPHVWLFODZXQGHU$UWLFOH RI)'5(
&RQVWLWXWLRQDQGLQFOXVLRQRIVSHFLILFSURYLVLRQV RIWHQLGHQWLFDOLQODQJXDJHWRWKHLQWHUQDWLRQDOLQVWUXPHQWV WKH)'5(FRQVWLWXWLRQLQFOXGHVERWKJHQHUDOKXPDQULJKWVUHODWHGWRODQGLHWRGXHSURFHVVHTXDOSURWHFWLRQ
DQG QRQGLVFULPLQDWLRQ XQGHU $UWLFOH DQG VSHFLILF ULJKWV IRU ZRPHQ XQGHU $UWLFOH RI )'5(
&RQVWLWXWLRQ
,Q WKH RIILFLDO GRFXPHQW RI WKH )'5( *RYHUQPHQW FDOOHG 6XVWDLQDEOH 'HYHORSPHQW IRU 3RYHUW\ 5HGXFWLRQ
3URJUDP 6'353 LW LV VWDWHG WKDW WKH IDUPHUV¶ ULJKW WR XVH ODQG VKDOO EH SURWHFWHG WKURXJK UHJLVWUDWLRQ DQG
LVVXDQFH RI FHUWLILFDWH RI KROGLQJ ULJKWV7KLV JHQHUDO H[SUHVVLRQ VHHPV WR LQFOXGH ZRPHQ E\ GHVLJQLQJ
UHJLVWUDWLRQ DQG FHUWLILFDWLRQ DV ZD\ WR SURWHFW WKHLU ULJKWV 6XFFHHGLQJ RIILFLDO SODQ QDPHG 3URJUDP IRU
$FFHOHUDWHG DQG 6XVWDLQDEOH 'HYHORSPHQW WR (QG 3RYHUW\ 3$6'(3 VDIHJXDUGV ZRPHQ¶V ULJKWV VXFK DV
DFFHVVWRODQGULJKWVDVLWSURWHFWVZRPHQIURPWKHPXOWLSOHIRUPVRIGLVFULPLQDWLRQ
'HVSLWHHIIRUWVE\JRYHUQPHQWWKURXJKLQFRUSRUDWLRQRIZRPHQULJKWVWRODQGXQGHUGLIIHUHQWOHJLVODWLRQVDQG
RIILFLDO GRFXPHQW IRU SODQ RI DFWLRQ WR LQWHJUDWH ZRPHQ LQ GHYHORSPHQWDO SROLFLHV RI FRXQWU\ VLWXDWLRQ RI
ZRPHQLVQRWLPSURYHGLQUXUDO(WKLRSLDWKRXJKWKHUHDUHVRPHLPSURYHPHQWVLQXUEDQDUHDV$FFRUGLQJO\
RQH HPSLULFDO ILQGLQJ LQGLFDWHV PDQ\ ZRPHQ RI UXUDO (WKLRSLD KDYH KDG DOPRVW QR ODQG ULJKWV LQ SUDFWLFDO
WHUPVGXHWRGLVFULPLQDWRU\FXOWXUDOYDOXHVDQGEHOLHIV\VWHPVZKLFKHQDEOHGPHQWREHFRQWUROOHUVRIDOPRVW
6HH $UWLFOH J RI 7KH&RQYHQWLRQRQ(OLPLQDWLRQRI $OO)RUPVRI'LVFULPLQDWLRQ $JDLQVW:RPHQ &('$: $GRSWHGDQG
RSHQHG IRU VLJQDWXUH UDWLILFDWLRQ DQG DFFHVVLRQ E\ *HQHUDO $VVHPEO\ UHVROXWLRQ RI 'HFHPEHU HQWU\ LQWR IRUFH 6HSWHPEHU$UWRIFRQYHQWLRQSURYLGHV6WDWHV3DUWLHVVKDOOWDNHDOODSSURSULDWHPHDVXUHVWRHOLPLQDWHGLVFULPLQDWLRQDJDLQVW
ZRPHQ LQ UXUDO DUHDV LQ RUGHU WR HQVXUH RQ D EDVLV RI HTXDOLW\ RI PHQ DQG ZRPHQ WKDW WKH\ SDUWLFLSDWH LQ DQG EHQHILW IURP UXUDO
GHYHORSPHQW 6SHFLILFDOO\ $UW J RI FRQYHQWLRQ VWDWHV ZRPHQ VKDOO KDYH HTXDO DFFHVV WR DJULFXOWXUDO FUHGLW DQG ORDQV
PDUNHWLQJIDFLOLWLHVDSSURSULDWHWHFKQRORJ\DQGHTXDOWUHDWPHQWLQODQGDQGDJUDULDQUHIRUPDVZHOODVLQODQGUHVHWWOHPHQWVFKHPHV
,&&35$UW
8'+5$UW,QWHUQDWLRQDO&RQYHQWLRQRQ&LYLODQG3ROLWLFDO5LJKWV ,&&35 $UW 8'+5$UW,&&35$UW 8'+5$UWLFOHV,&&35$UW 7KH)HGHUDO'HPRFUDWLF5HSXEOLFRI(WKLRSLD0LQLVWU\RI)LQDQFHDQG(FRQRPLF'HYHORSPHQW 6XVWDLQDEOH'HYHORSPHQW
IRU3RYHUW\5HGXFWLRQ3URJUDP3
7KH)HGHUDO'HPRFUDWLF5HSXEOLFRI(WKLRSLD0LQLVWU\RI)LQDQFHDQG(FRQRPLF'HYHORSPHQW 3URJUDPRI$FFHOHUDWHG
DQG6XVWDLQDEOH'HYHORSPHQWWR(QG3RYHUW\S
ϭϵ
$QZDU+DVVHQ :RPHQ¶VDFFHVVWRODQGDQGFRQWURORYHUODQGLQUHODWLRQWRGHYHORSPHQW&DVHRI$JDUID:RUHGDLQ%DOH
=RQH2URPLD5HJLRQS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWy
HYHU\IDFHWRIUXUDOOLIH+HQFHWKHFRQGLWLRQRIZRPHQOLYLQJLQGLIIHUHQWUHJLRQVRIUXUDO(WKLRSLDDSSHDUV
WREHGLIIHUHQWDQGVHULRXVZKHQRQHORRNVLQWR GLIIHUHQW DVSHFWVRIJHQGHUHTXDOLW\DQGODQGHQWLWOHPHQWVRI
ZRPHQ
7KHVWUDWHJLFSODQRIWKH61135 VKRZVWKH61135OD\VRQDQDUHDRINPLVORFDWHGLQ
WKH VRXWKZHVWHUQ SDUW DW GHJUHH ODWLWXGH DQG GHJUHH ORQJLWXGH FRQVLVWLQJ RI RQH ILIWK DERXW PLOOLRQ RI WKH SRSXODWLRQ RI (WKLRSLD 7KHUH DUH DERXW :RUHGDV HQFRPSDVVLQJ SHRSOH SHU VTXDUH
NLORPHWHU LQ WKH UHJLRQ $PRQJ WKHVH *HGHR ]RQH KDV HLJKW ZRUHGDV VL[ UXUDO ZRUHGDV DQG WZR XUEDQ
ZRUHGDV 7KLV]RQHKDVNHEHOHVRXWRIZKLFKHLJKWRIWKHPZRXOGEHVXEMHFWRIWKLVVWXG\
7KHUHVHDUFKHUV¶SUHOLPLQDU\VXUYH\LQWKHVWXG\DUHDGHSLFWV*HGHR]RQHKDVGLIIHUHQWIDFWXDOUHDOLWLHV,WKDV
IHUWLOHODQGZLWKDGHTXDWHUDLQ\VHDVRQVXLWDEOHIRUDJULFXOWXUH+RZHYHUWKHUHLVQRODUJHVL]HODQGWKDWFDQEH
XVHGE\UHVLGHQWV5HVHDUFKHUVDUHPRWLYDWHGWRVWXG\ZRPHQ¶VDFFHVVWRODQGULJKWVLQ*HGHR=RQHEHFDXVHRI
WKH IROORZLQJ UHDVRQV WKDW HPHUJHG IURP SUHOLPLQDU\ VXUYH\ )LUVW UHVHDUFKHUV¶ VXUYH\ LQ WKH VWXG\ DUHD
LPSOLHVFXVWRPDU\YDOXHVLQVWXG\DUHDLPSRVHGLVFULPLQDWLRQDJDLQVWZRPHQIURPPRPHQWRIELUWKRIIHPDOH
EHFDXVH VRFLHW\ ZRUULHV DERXW VH[ RI GHOLYHUHG FKLOG 7KXV ZKHQ D ZRPDQ GHOLYHUV VRQ VKH ZRXOG EH
FRQJUDWXODWHG EXW ZKHQ WKH VDPH ZRPDQ GHOLYHUV GDXJKWHU VKH ZRXOG QRW EH FRQJUDWXODWHG UDWKHU SHRSOH
EHVLGH ZRPDQ GHOLYHULQJ GDXJKWHU NHHS VLOHQFH ZKLFK VKRZV GLVVDWLVIDFWLRQ RI VRFLHW\ ZLWK ELUWK RI IHPDOH
7KLVKDVGLUHFWLPSDFWRQZRPHQDFFHVVWRODQGULJKWV6HFRQGGDWDREWDLQHGIURPUHVHDUFKHUV¶VXUYH\GHSLFW
DFFRUGLQJWRWKHFXVWRPRIVRFLHW\LQWKHVWXG\DUHDGDXJKWHUVFDQQRWLQKHULWODQGULJKWRIWKHLUSDUHQWVEHFDXVH
VRFLHW\ QHHG WR SUHYHQW WUDQVIHU SURSHUW\ IURP ZLIH OLQHDJH WR KXVEDQG OLQHDJH UHFRJQL]LQJ RQO\ VRQV WR
VXFFHHGSURSHUW\RIIDPLO\,QWKHVDPHIDVKLRQZRPHQZKRKDYH DOUHDG\PDUULHGFDQQRWLQKHULWODQGULJKWV
DIWHUGHDWKRIWKHLUSDUHQWV7KXVWKHUHLVWHQGHQF\WRH[FOXGHZRPHQIURPVXFFHVVLRQRISURSHUW\LQJHQHUDO
DQGODQGULJKWVLQSDUWLFXODU7KLUGLQVRPHDUHDVRI6RXWKHUQ(WKLRSLDWKHUHLVHYLFWLRQRIZLIHDIWHUGHDWKRI
KXVEDQG LH ZLIH FDQQRW PDUU\ DQRWKHU KXVEDQG DIWHU GHDWK RI SUHYLRXV KXVEDQG ZKLOH KXVEDQG FDQ PDUU\
DQRWKHUZLIHRQWKHVDPHODQG7KHUHIRUHWKHVHVLWXDWLRQVRIZRPHQ¶VULJKWVWRODQGLQ*HGHR=RQHDQGRWKHU
DUHDRIVRXWKHUQ(WKLRSLDLQFOXGLQJ611356FDOOVIRUVWXG\WRLGHQWLI\LPSDFWRIFXVWRPDU\ODQGKROGLQJRQ
ZRPHQDFFHVVWRODQGULJKWVDQGZKHWKHURUQRWWKHUHDUHEDUULHUVLQWKHVRXWKHUQ(WKLRSLDDJDLQVWHQMR\PHQWRI
ODQGULJKWVUHFRJQL]HGE\ODZ
,ELG S DQG =HQDEDZRUNH7DGHVVH ³:RPHQ DQG /DQG 5LJKW LQ (WKLRSLD´ 3UHVHQWHG RQ WKH ZRUNVKRS
/DQG7HQXUH3URMHFWRQ$FFHVVWR/DQGDQG5HVRXUFH0DQDJHPHQWLQ(WKLRSLD:RUNVKRS3DSHU5HWULHYHGRQ$XJXVWIURP
KWWSZZZODZHPRU\HGX:$/:$OVWXGLHVHWKLRSLDKWP
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWz
ͳǤʹǤ–ƒ–‡‡–‘ˆ”‘„Ž‡
$OWKRXJKWKHFDPSDLJQIRUHTXDOULJKWVRIZRPHQLVRQHRIWKH8QLWHG1DWLRQV PRVWLQWHQVHDQGZLGHVSUHDG
PRYHPHQWV¶ZRPHQKDYHQRWDFKLHYHGHTXDOLW\ZLWKPHQLQPDQ\FRXQWULHVDQGZRPHQFRQWLQXHWRVXIIHU
IURPXQHTXDODFFHVVWRSURSHUW\ULJKWVLQFOXGLQJDFFHVVWRODQGULJKWV&RQVHTXHQWO\VRPHIHPLQLVWVDUJXH
WKDWOHJDOV\VWHPVZKLFKDUHGHVLJQHGDQGGRPLQDWHGE\PHQDQG PDOHYDOXHVPDLQWDLQHGE\HGXFDWHGHOLWHV
FDQQRWSRVVLEO\ EH UHVSRQVLYHWRZRPHQ¶VQHHGVHVSHFLDOO\WKHQHHGVRI SRRUXQHGXFDWHGZRPHQLQFOXGLQJ
TXHVWLRQVIRUDFFHVVWRODQGULJKWVDQGWHQXUHVHFXULW\ ,Q D JHQGHU VHWWLQJ LW LV LPSRUWDQW WR QRWH GRZQ WKDW WKHUH DUH GLIIHUHQFHV EHWZHHQ WKH OHJDO DQG VRFLDO
UHFRJQLWLRQ RI ODQG ULJKWV DQG EHWZHHQ UHFRJQLWLRQ DQG HQIRUFHPHQW )RU ZRPHQ VRFLDO DQG OHJDO
UHFRJQLWLRQ GLIIHUHQFHV DUH SDUWLFXODUO\ LPSRUWDQW IRU WKH VHFXULW\ RI WKHLU ULJKWV %HVLGHV EHLQJ UHFRJQL]DEOH
DQGHQIRUFHDEOHDQLPSRUWDQWFRPSRQHQWRIODQGWHQXUHVHFXULW\IRUZRPHQLVDQLQGHSHQGHQWULJKWWRODQG,Q
WHQXUH V\VWHPV ZKHUH ODQG LV WLWOHG LQGHSHQGHQW ULJKW WR ODQG ZRXOG PHDQ WKDW ZRPHQ VKRXOG KDYH
LQGHSHQGHQW WLWOH WR ODQG $OWKRXJK MRLQW WLWOH ZLWK D VSRXVH LV SUHIHUDEOH WR QRQH LQGHSHQGHQW WLWOH ZRXOG
SHUPLWZRPHQPXFKJUHDWHUDXWRQRP\DQGHQKDQFHWKHLUFKRLFHVWRPDNHWKHLURZQGHFLVLRQVDERXWODQGXVH
SULRULWLHV WR FRQWURO RXWSXW WR HVFDSH PDULWDO FRQIOLFW DQG WR KDYH VHFXUH DFFHVV WR WKH PHDQV RI HDUQLQJ D
OLYLQJLQFDVHRIPDULWDOEUHDNXSRURIDVSRXVH VGHDWK EHFDXVHUHFRJQLWLRQRIZRPHQ VLQGHSHQGHQWULJKWWR
ODQG ZRXOG HQKDQFH WKHLU VHFXULW\ ,Q UHODWLRQ ZLWK ZRPHQ V LQGHSHQGHQW ULJKW WR ODQG ULJKWV¶ IHPLQLVW
VFKRODUVFRPPHQWUHIRUPLQJERWKVXEVWDQWLYHOHJDOUXOHVDQGWKHPDQQHULQZKLFKVXFKUXOHVDUHHQIRUFHG WR
HQVXUHWKDWODZDQGSUDFWLFHGRQRWH[FOXGHRUDIIHFWZRPHQULJKWVWRODQG)RULQVWDQFHLQWKHUHKDYH
EHHQ VHULRXV REMHFWLRQV RQ ZRPHQ¶V MRLQW WLWOHV WR ODQG $ VHULHV RI SROLF\ FRQIHUHQFH PHHWLQJV ZLWK FLYLO
VRFLHW\ JURXSV LQFOXGLQJ WKH ,QGLDQ )HPLQLVW *URXS RI WK )LYH<HDU 3ODQ FDPH XS ZLWK D JHQHUDO
FRQFOXVLRQ WKDW WKH PHDVXUHV IRU MRLQW WLWOHV RI ODQG ULJKWV KDYH QRW ZRUNHG HIIHFWLYHO\ DQG UHPDLQHG
LQFRQVHTXHQWLDOIRUVRFLDODQGHFRQRPLFHPSRZHUPHQWRIZRPHQ7KHUHVXOWRIWKLVFRQVXOWDWLRQKROGVWKDW
81,7('1$7,216'(3 72)38%,1)2:20(1,17(51$7,21$/:20(1 6 '$<'3,, -DQ DYDLODEOH
DW KWWSZZZXQRUJOHFRVRFGHYJHQLQIRZRPHQZRPGD\KWP 81,7('1$7,216'(3 72)38%,1)2:20(1$7$*/$1&('3,5HY
0D\ DYDLODEOHDWKWWSZZZXQRUJHFRVRFGHYJHQLQIRZRPHQZRPHQKWP &
0&&RUGRQLHU6HJJHU $.KDOIDQ 6XVWDLQDEOH'HYHORSPHQW/DZ3ULQFLSOHV3UDFWLFHV 3URVSHFWV 2[IRUG2[IRUG
8QLYHUVLW\3UHVV S
Ϯϰ
5HNKD0HKUD DERYHQRWHS
,ELG
,ELG
,ELG
0&&RUGRQLHU6HJJHU $.KDOIDQ DERYHQRWHS
*RYLQG.HONDU 7KH)RJRI(QWLWOHPHQWZRPHQDQG/DQGLQ,QGLD$QQXDO:RUOG%DQN&RQIHUHQFHRQ/DQGDQG3RYHUW\
3
,ELG
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYW{
³ZKHUH QHZ ODQG LV EHLQJ GLVWULEXWHG RU UHJXODUL]HG RU IRUPDOL]HG LQGLYLGXDO WLWOHV LQ ZRPHQ¶V QDPH RQO\
UDWKHUWKDQMRLQWWLWOHVZLWKKXVEDQGVFRXOGEHFRQVLGHUHG´
7KH SURSRQHQWV RI ZRPHQ¶V LQGHSHQGHQW ULJKWV WR ODQG SURSRVH WKH IROORZLQJ UHDVRQV IRU DGRSWLRQ RI VXFK
ULJKWV 7KH ILUVW UHDVRQ IRU DGRSWLRQ RI VXFK ULJKWV LV WKDW ZLWK LQGHSHQGHQW ODQG ULJKWV ZRPHQ ZLOO DEOH WR
WDFNOH WKH ORFDO ZRUOG RI PDOH GRPLQDQFH VWLJPD DQG KXPLOLDWLRQ LQ FDVH RI DQ\ FRQWUDYHQWLRQ RI JHQGHU
QRUPV6HFRQGZRPHQ¶VLQGHSHQGHQWSRVVHVVLRQDQGFRQWURO RI ULJKWV WR ODQG ZLOO QRW RQO\ OHDG WR KLJKHU
DQGEHWWHUTXDOLW\SURGXFWLRQEXWLWZLOOHQDEOHWKHPWRFRQWUROWKHXVHRIKRXVHKROGLQFRPHIRUWKHZHOOEHLQJ
RIWKHPVHOYHVDQGRWKHUPHPEHUVRIWKHKRXVHKROG7KLUGLWFDQDOVREHQHILWZRPHQE\FRQWULEXWLQJWRZDUG
WKH UHGXFWLRQ RI ZRPHQ¶V GRPHVWLF YLROHQFH7KH UHVHDUFKHUV RI WKLV ZRUN EHOLHYH WKDW QRQ UHFRJQLWLRQ RI
ZRPHQ¶VLQGHSHQGHQWWLWOHWRODQGULJKWV PD\QHJDWLYHO\DIIHFWZRPHQ (YHQLQGHSHQGHQWWLWOHWRODQGULJKWV
PD\UHGXFHFRQJHVWLRQRIFDVHVLQFRXUWV
&RPLQJ WR WKH SRVLWLRQ RI WKH (WKLRSLDQ ODZ (WKLRSLD KDV SDVVHG OHJLVODWLRQV SURWHFWLQJ ZRPHQ¶V SURSHUW\
ULJKWVLQFOXGLQJULJKWVWRDJULFXOWXUDOODQG2QHFDQQRWLFHSURWHFWLRQRIODQGULJKWVIURPWKHSURYLVLRQVRIWKH
IROORZLQJ OHJLVODWLRQV 7KH ILUVW ODZ GHDOLQJ ZLWK ODQG ULJKW LV &LYLO FRGH RI ZKLFK SURYLGHV EXQGOH RI
ODQGULJKWVOLNHULJKWRIRZQHUVKLSXVXIUXFWVXFFHVVLRQHWF+RZHYHULWGHQLHVWKHZRPHQ¶VLQGHSHQGHQWULJKW
WR ODQG 1RQ UHFRJQLWLRQ RI ZRPHQ¶V LQGHSHQGHQW WR ODQG ULJKWV KDV JUHDW VLJQLILFDQFH IRU ZRPHQ EHFDXVH
KLVWRULFDOO\ KDQGKROGLQJ ULJKWV KDYH EHHQ LQ WKH KDQGV RI PHQ GXH WR FXVWRPDU\ ODQG KROGLQJ V\VWHPV DQG
GRPLQDQFHRIPHQFODVV
7KH VHFRQG ODZ GHDOLQJ ZLWK ODQG ULJKWV LV )'5( 5XUDO /DQG $GPLQLVWUDWLRQ DQG /DQG 8VH 3URF
1R $FFRUGLQJO\ $UW E DQG F RI WKH VDPH SURYLGH DQ\ FLWL]HQ LQFOXGLQJ ZRPDQ RI WKH
FRXQWU\ZKRLV\HDUVRIDJHRUDERYHDQGZDQWVWRHQJDJHLQDJULFXOWXUHIRUDOLYLQJVKDOOKDYHWKHULJKWWR
JHW DQG XVH UXUDO ODQG 0RUHRYHU $UW RI WKH 3URF1R UHFRJQL]HV ULJKW RI DQ\ SHUVRQ ZKR LV
PHPEHU RI D SHDVDQW KDYLQJ WKH ULJKW WR XVH UXUDO ODQG WR DFTXLUH UXUDO ODQG IURP KLV IDPLO\ E\ GRQDWLRQ
LQKHULWDQFHRUIURPWKHFRPSHWHQWDXWKRULW\7KHVHSURYLVLRQVVHHPWRHQWLWOHZRPHQULJKWWRXVHODQGDQGWR
DFTXLUHODQGULJKWVWKURXJKJLIWVXFFHVVLRQDQGJRYHUQPHQWGLVWULEXWLRQ
7KHWKLUGOHJLVODWLRQVGHDOLQJZLWKIDPLO\SURSHUW\DUHIDPLO\FRGHV%XWERWKIHGHUDOUHYLVHGIDPLO\FRGHDQG
UHJLRQDO IDPLO\ FRGHV LQFOXGLQJ 611356 IDPLO\ GRQ¶W UHFRJQL]H VSRXVH ULJKWV WR VXFFHHG HDFK RWKHU¶V
SURSHUW\LQFOXGLQJODQGULJKWV7KXVODQGOHJLVODWLRQVDQGRWKHUUHODWHGODZVIROORZLQJFLYLOFRGHGRQ¶WHQWLWOH
ϯϭ
/ďŝĚ͘
/ďŝĚ͕Ɖ͘ϴ͘
/ďŝĚ͘
ϯϰ
/ďŝĚ͘
ϯϮ
ϯϯ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsr
VSRXVHVWRLQKHULWHDFKRWKHU¶VSURSHUW\,QRWKHUZRUGVXQGHUFXUUHQW(WKLRSLDQOHJLVODWLRQVVSRXVHVLQFOXGLQJ
ZRPHQGRQ¶WKDYHUHFRJQL]HGULJKWWRLQKHULWODQGULJKWVRIRSSRVLWHSDUWQHU
2WKHU SURYLVLRQ ZRUWK PHQWLRQLQJ LV $UW RI )'5( 5XUDO /DQG $GPLQLVWUDWLRQ DQG /DQG 8VH
3URF1RZKLFKVWDWHVDQ\KROGHURIUXUDOODQGVKDOOEHJLYHQKROGLQJFHUWLILFDWHWREHSUHSDUHGE\WKH
FRPSHWHQWDXWKRULW\7KLVVHHPVWRFRYHULQGHSHQGHQWODQGKROGLQJFHUWLILFDWHVIRUZRPHQKRXVHKROGVZKRVH
KXVEDQGVKDYHEHHQGLHG)RUZRPHQLQPDUULDJHLQVWLWXWLRQWKHODZVHHPVWRSURWHFWRQO\MRLQWODQGKROGLQJ
ULJKWVDVFDQEHQRWLFHGIURP$UW RI)'5(5XUDO/DQG$GPLQLVWUDWLRQDQG/DQG8VH3URF1R
ZKLFKUHDGVZKHUHODQGLVMRLQWO\KHOGE\KXVEDQGDQGZLIHRUE\RWKHUSHUVRQVWKHKROGLQJFHUWLILFDWHVKDOOEH
SUHSDUHGLQWKHQDPHRIDOOWKHMRLQWKROGHUV7KXVZHFDQQRWVD\DZRPDQLQPDUULDJHLQVWLWXWLRQKDVDFFHVV
ODQGKROGLQJULJKWEHFDXVHIDPLO\RIKXVEDQGPD\HYLFWKHUIURPWKHODQGKROGLQJDQGHQMR\PHQWRIODQGULJKWV
HVSHFLDOO\LIZRPDQKDVQRVRQ
&RPLQJWRWKHUHJLRQDOODQGODZV$UWLFOH G RI)'5(&RQVWLWXWLRQDOORFDWHVWKHDXWKRULW\WRDGPLQLVWHU
ODQG DQG RWKHU QDWXUDO UHVRXUFHV LQ DFFRUGDQFH ZLWK )HGHUDO ODZV GLUHFWO\ WR WKH 6WDWHV LQFOXGLQJ 6113
&RQVHTXHQWO\WKH6113&RXQFLOKDVLVVXHGGLIIHUHQWODQGOHJLVODWLRQVIRUPDLQVWUHDPLQJZRPHQ¶VULJKWVWR
ODQG 7KH 611356 ODQG DGPLQLVWUDWLRQ DQG XVH 3URF1R LV WKH PDLQ OHJLVODWLRQ DPRQJ RWKHUV ,W
FRQVLVWVRIGLIIHUHQWSURYLVLRQVGHDOLQJZLWKODQGULJKWVRIZRPHQLQPDUULDJHDQGZRPHQKHDGHGKRXVHKROGV
)LUVW $UW RI 611356 3URF1R VWDWHV SHDVDQW IDUPHUV SDVWRUDOLVWV DQG VHPLSDVWRUDOLVWV
HQJDJHG LQ DJULFXOWXUH VKDOO KDYH WKH ULJKW WR JHW UXUDO ODQG IUHHO\ $UW RI 611356 3URF1R
UHDGVUHVLGHQWRIWKHUHJLRQHLJKWHHQ\HDUVROGRUPRUHZKRZDQWVWRHQJDJHLQDJULFXOWXUHKDVWKHULJKWRI
JHWWLQJUXUDOODQGKROGLQJDQGXVH7KLUG$UW RI6113563URF1RXWWHUVWKHZRPHQZKRZDQW
WR HQJDJH LQ DJULFXOWXUH VKDOO KDYH WKH ULJKW WR JHW DQG XVH UXUDO ODQG )RXUWK $UW RI 611356
3URF1RDIILUPVKXVEDQGDQGZLIHKDYHHTXDOXVHULJKWRQWKHLUFRPPRQODQGKROGLQJVLUUHVSHFWLYH
WKHLUPDUULDJHSRVVHVVHGEHIRUH )LIWK$UW RI6113563URF1RSURYLGHVZRPHQ KRXVHKROG
KHDGV VKDOO KDYH IXOO XVH ULJKW RQ WKHLU ODQG KROGLQJV 6L[WK VLPLODU ZLWK $UW RI )'5( 5XUDO /DQG
$GPLQLVWUDWLRQ DQG /DQG 8VH 3URF1R $UW RI 611356 3URF1R VWDWHV WKDW DQ\
SHUVRQZKRLVDPHPEHURIDSHDVDQWVHPLSDVWRUDOLVWDQGSDVWRUDOLVWIDPLO\KDYHWKHULJKWWRXVHUXUDOODQG
WKDWPD\EHREWDLQHGIURPKLVIDPLO\E\JLIWRULQKHULWDQFHRUIURPWKHFRPSHWHQWDXWKRULW\6HYHQWK$UW RI6113563URF1RVWDWHVWKDWZKHUHODQGLVMRLQWO\KHOGE\KXVEDQGDQGZLIHRUE\RWKHUSHUVRQV
WKH KROGLQJ FHUWLILFDWH VKDOO EH SUHSDUHG LQ WKH QDPH RI DOO WKH MRLQW KROGHUV +RZHYHU QRQH RI WKHVH ODQG
OHJLVODWLRQUHFRJQL]HLQGHSHQGHQWZRPHQ¶VULJKWVWRODQGEHLQJOLPLWHGWRUHFRJQL]HMRLQWSRVVHVVLRQRIODQG
ZLWKKXVEDQGVGXULQJODQGUHJLVWUDWLRQDQGFHUWLILFDWLRQ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWss
0RUHRYHUWKRXJK$UW RI6113563URF1RDGYRFDWHVHTXDOLW\RIULJKWVRIKXVEDQGDQG ZLIH
RYHUWKHXVHULJKWRQWKHLUFRPPRQODQGKROGLQJV3UHOLPLQDU\VXUYH\LQVWXG\DUHDLQGLFDWHVLQUXUDODUHDRI
*HGHR]RQHDQGRWKHUSDUWVRIVRXWKHUQ(WKLRSLDZRPHQ¶VHTXDODFFHVVWRODQGULJKWVZLWKPHQLVQRWDWSURSHU
FRQGLWLRQLQSUDFWLFDOWHUPV7KLVVWXG\LQWHQGVWRWDFNOHSUREOHPRIHQIRUFHPHQWRIZRPHQ¶VDFFHVVWRODQG
ULJKWV DQG EDUULHUV WKDW SUHYHQW HQMR\PHQW RI VXFK ULJKWV LQ *HGHR =RQH LQ SDUWLFXODU DQG 611356RXWKHUQ
(WKLRSLDLQJHQHUDO
7R FRQVLGHU WKH H[SHULHQFH RI RWKHU FRXQWULHV VXFK DV ,QGLD DQG VXE6DKDUDQ $IULFDQ FRXQWULHV WKRXJK D
ZRPDQLVXVXDOO\JLYHQDSDUFHORIODQGE\KHUKXVEDQGDWWKHWLPHRIKHUPDUULDJHWKHULJKWWRVXFFHHGODQGLV
WKHXVXDOO\GHQLHGDQGQRQHUHFRJQL]HGULJKWLQ VRPHVWDWHV$OWKRXJKVKHPD\FXOWLYDWHWKHODQGVKHPD\
QRWKRZHYHUWUDQVIHUWKHSURSHUW\QRUGRHVVKHKDVDOLIHHVWDWHLQWKHODQG,IVKHLVGLYRUFHGVKHORVHVDOO
ULJKWVWRKHUIDUPDVSURSULHWDU\ULJKWVUHPDLQZLWKWKHKXVEDQG:KHQKHUKXVEDQGGLHVKHUULJKWVXVXDOO\
WHUPLQDWH DV WKH ODQG SDVVHV WR KHU KXVEDQG V KHLUV &XVWRPDU\ ODZV RI VXFFHVVLRQ ZKLFK SURKLELW ZRPHQ
IURP LQKHULWLQJ ODQG HLWKHU IURP WKHLU KXVEDQGV RU WKHLU SDUHQWV HVWDWHV ZRUVHQ VHYHULW\ RI WKH SUREOHP
:KHQDPDQGLHVKLVODQGLVGLYLGHGDPRQJKLVVRQVRULQVRPH DUHDVDPRQJKLVEURWKHUVRURWKHUSHUVRQV
UHODWHGWRKLPWKURXJKKLVQDWDOIDPLO\DVRSSRVHGWRKLVFRQMXJDOIDPLO\GHSULYLQJRUUHGXFLQJZRPHQDFFHVV
WRODQGULJKWV
&RPLQJ WR WKH (WKLRSLDQ FRQWH[W WKH )'5( FRQVWLWXWLRQ JLYHV SURWHFWLRQ WR ZRPHQ¶V ULJKWV $FFRUGLQJO\
$UW)'5(FRQVWLWXWLRQDGGUHVVHVHTXDOULJKWVRIZRPHQWRSURSHUW\RZQHUVKLSLQFOXGLQJHTXDOLW\WRODQG
ULJKWV SRVVHVVLRQ %HVLGHV ODQG ODZV KDYH EHHQ LVVXHG DW UHJLRQDO OHYHOV FRQVLVWHQW WR FRQVWLWXWLRQ VLQFH
PDQGDWHWRDGPLQLVWHUODQGDQGQDWXUDOUHVRXUFHVLVJLYHQWRODQGULJKWV7RDFFRPSOLVKWKHPDQGDWH61135
HQDFWHGLWVRZQWKH 5XUDO /DQG $GPLQLVWUDWLRQDQG8VH3URFODPDWLRQ1R7KLVODZ FOHDUO\VWDWHV
WKDWKXVEDQGDQGZLIHDUHMRLQWRZQHUVRIWKHLUODQGKROGLQJVUHJDUGOHVVRIWKHLUSUHPDUULDJHLQGLYLGXDOODQG
KROGLQJ,WDOVRUHFRJQL]HVVSRXVHV¶ULJKWWRLQKHULWODQGULJKWV
+RZHYHUWKHUHVHDUFKHUV¶SUHOLPLQDU\VXUYH\LQWKHVWXG\DUHDFRPSHOVWKHUHVHDUFKHUVWRVXVSHFWH[LVWHQFHRI
ZRPHQ¶VHTXDODFFHVVWRODQGULJKWVLQSUDFWLFHLQ*HGHR=RQHDQGRWKHUSDUWVRI6RXWKHUQ(WKLRSLDEHFDXVHRI
WKHIROORZLQJUHDVRQV)LUVWFXVWRPDU\YDOXHVLQVWXG\DUHDEHJLQGLVFULPLQDWLRQDJDLQVWZRPHQIURPPRPHQW
RIELUWKRIIHPDOHEHFDXVHVRFLHW\ZRUULHVDERXWVH[RIGHOLYHUHGFKLOG7KXVDZRPDQZKRGHOLYHUVVRQVKH
ZRXOG EH FRQJUDWXODWHG EXW WKH RQH ZKR GHOLYHUV GDXJKWHU ZRXOG QRW EH FRQJUDWXODWHG UDWKHU SHRSOH EHVLGH
ϯϱ
/LVD%HQQHWW :RPHQ/DZDQG3URSHUW\LQWKH'HYHORSLQJ:RUOG$Q2YHUYLHZ+XP5WV4S
,ELG
,ELG
,ELG
LELG
,ELG
ϰϭ
/ŶƚĞƌǀŝĞǁǁŝƚŚtͬƌŽďĞƌĂƐŚ͕'ĞĚĞŽŽŶĞtŽŵĞŶƐƐŽĐŝĂƚŝŽŶŽĨĨŝĐŝĂů͕KĐƚŽďĞƌϭϬ͕ϮϬϭϯ͗Ϭϱ͗ϭϲ͘
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWst
ZRPDQGHOLYHULQJGDXJKWHUNHHSVLOHQFHZKLFKVKRZVGLVVDWLVIDFWLRQRIVRFLHW\ZLWKELUWKRIIHPDOH6HFRQG
DFFRUGLQJWRWKHFXVWRPRIVRFLHW\LQWKHVWXG\DUHDGDXJKWHUVFDQQRWLQKHULWODQGULJKWRIWKHLUSDUHQWV ,QWKH
VDPH IDVKLRQ ZRPHQ ZKR KDYH DOUHDG\ PDUULHG DQG JLUOV FDQQRW LQKHULW ODQG ULJKWV DIWHU GHDWK RI WKHLU
SDUHQWV7KXVWKHUHLVWKHWHQGHQF\WRH[FOXGHZRPHQIURPVXFFHVVLRQRISURSHUW\LQJHQHUDODQGODQGULJKWV
LQSDUWLFXODU7KLUGUHVHDUFKHUV¶VXUYH\LQVRPHDUHDVRI*HGHR]RQHOLNH<LUJDFDIH:RUHGDDQGRWKHUSDUWVRI
6RXWKHUQ(WKLRSLDLPSOLHVWKHUHLVWKHHYLFWLRQRIZLIHDIWHUGHDWKRIKXVEDQGLHZLIHFDQQRWPDUU\DQRWKHU
KXVEDQG DIWHU RI SUHYLRXV KXVEDQG ZKLOH KXVEDQG FDQ PDUU\ DQRWKHU ZLIH RQ WKH VDPH ODQG 7KXV LQ WKLV
VWXG\UHVHDUFKHUVLQWHQGWRH[DPLQHZKHWKHURUQRWZRPHQKDYHULJKWWRVXFFHHGODQGULJKWVLQSUDFWLFDOWHUPV
GXHWRYDULRXVIDFWRUVZKLFKSUHYHQWZRPHQIURPHTXDOO\DFFHVVLQJODQGULJKWVLQWKHVWXG\DUHD
0RUHRYHUKDYLQJJRRGOHJLVODWLRQVZKLFKVSHDNDERXWHTXDOLW\RIJHQGHUPD\QRWDORQHEULQJDERXWIDLUQHVV
DQGHTXDOLW\RIDFFHVVWRODQGULJKWV,QVWHDGODQGULJKWVIRUZRPHQPXVWEHVXSSOHPHQWHGE\RWKHUIDFWRUVOLNH
FRPPLWPHQWV WR LPSOHPHQW WKH H[LVWLQJ ODQG ODZV WR HQVXUH IDLU UHVROXWLRQ RI GLVSXWHV WKDW ULVH IURP ODQG
ULJKWV DQG WR SUHYHQW WKH GRPLQDQFH RI FXVWRPDU\ SUDFWLFH OLNH DWWDFKPHQW RI LPPRYDEOH SURSHUW\ WR PDOH
OLQHDJHH[FOXVLRQRIZRPHQIURPVXFFHVVLRQRIODQGULJKWVDQGVXSUHPDF\RIPDOH
$V D UHVXOW RI FXVWRPDU\ WHQXUH V\VWHPV DJDLQVW ZRPHQ DQG FHUWDLQ HQIRUFHPHQW SUREOHPV LQ UHODWLRQ ZLWK
ZRPHQ¶V ODQG ULJKWV WKH VWDWXV RI ZRPHQ OLYLQJ LQ GLIIHUHQW YLOODJHV RI UXUDO (WKLRSLD DSSHDUV WR EH FULWLFDO
ZKHQRQHORRNVLQWRDVSHFWVRIJHQGHUHTXDOLW\DQGODQGHQWLWOHPHQWVRIWKHPLQSUDFWLFH3UHOLPLQDU\VXUYH\
LQ WKH VWXG\ DUHD LQFOXGLQJ *HGHR =RQH LPSOLHV WKHUH LV QR LQWHJUDWLRQ RI ZRPDQ PHPEHU LQ ODQG
DGPLQLVWUDWLRQ FRPPLWWHH 6XFK QRQ SDUWLFLSDWRU\ FRPSRVLWLRQ LQ ODQG DGPLQLVWUDWLRQ FRPPLWWHH PD\
QHJDWLYHO\DIIHFWZRPHQODQGULJKWVWKRXJKODZVDUHVPDUWLQDGYRFDWLQJHTXDOLW\RIJHQGHU:K\ZRPHQDUH
H[FOXGHG IURP ODQG DGPLQLVWUDWLRQ V\VWHP ZLOO EH VWXGLHG %HVLGHV ZRPHQ QRQ SDUWLFLSDWLRQ LQ ODQG
DGPLQLVWUDWLRQSURFHVVPD\UHGXFHWKHLUDFFHVVWRODQGULJKWV )XUWKHUPRUHFXOWXUDOYDOXHVOLNHDWWDFKPHQWRI
LPPRYDEOHSURSHUW\WRPDOHOLQHDJHKLVWRULFDOGLVFULPLQDWLRQKDGSXWDOPRVWDOOODQGULJKWVDWKDQGRIPDOHV
PDNLQJPDOHVWLWOHKROGHUVDQGWD[SD\HUVDQGZRPHQ¶VGHQLDOWRLQKHULWODQGULJKWVDUHFDXVLQJXQIDLUQHVVRI
ZRPHQ¶ DFFHVV WR ODQG ULJKWV ,Q SDUWLFXODU WKH FRQGLWLRQ RI UXUDO ZRPHQ LQ WKH 6RXWKHUQ 1DWLRQV
1DWLRQDOLWLHVDQG3HRSOHV5HJLRQ 61135 RI(WKLRSLDLVQRWVSHFLDO([WHQWRIZRPHQ¶VDFFHVVWRODQGULJKW
ϰϮ
/ďŝĚ͘
ŝďŝĚ
/ďŝĚ
ϰϱ
ŝďŝĚ
<RQDV 74 :RPHQ DQG /DQG 5LJKWV LQ 5XUDO (WKLRSLD 7KH &DVH RI :RODLWD 0DVWHU RI
3KLORVRSK\8QLYHUVLW\RI7URPV¡1RUZD\S
ϰϳ
/ŶƚĞƌǀŝĞǁǁŝƚŚƚŽ/LJĂƐƵtĂƋŽ͕ŝůůĂŽŶĞZƵƌĂůĞǀĞůŽƉŵĞŶƚĂŶĚ>ĂŶĚĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨĨŝĐŝĂů͕^ĞƉƚĞŵďĞƌϮϮ͕ϮϬϭϯ͗Ϭϱ͗ϭϲ͘
ϰϴ
/ďŝĚ
ϰϵ
/ďŝĚ͘
ϱϬ
/ŶƚĞƌǀŝĞǁǁŝƚŚƚŽ/LJĂƐƵtĂƋŽ͕ĂďŽǀĞŶŽƚĞϯϲĂŶĚ$QZDU+DVVHQ DERYHQRWHS
ϰϯ
ϰϰ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsu
LV QRW NQRZQ VR IDU ,Q WKLV UHJDUG SUHOLPLQDU\ VXUYH\ DQG REVHUYDWLRQ RI NH\ LQIRUPDQWV LQ WKH VWXG\ DUHD
GHSLFWV WKDW ZRPHQ DQG PHQ KDYH GLIIHUHQW DFFHVV WR FULWLFDO HFRQRPLF UHVRXUFHV LQFOXGLQJ DFFHVV WR ODQG
ULJKWVDQGYDU\LQJSRZHUWRPDNHFKRLFHVWKDWDIIHFWWKHLUOLYHV7KHFDXVHIRUZRPHQ¶VGLIIHUHQWDFFHVVWR
QDWXUDOUHVRXUFHVLQFOXGLQJDFFHVVWRODQGULJKWLVPHDJHUO\NQRZQ 7KLVQHFHVVLWDWHVFRQGXFWLQJ UHVHDUFKWR
H[SRVHIDFWRUVZKLFKFDXVHGLIIHUHQWDFFHVVWRODQGULJKWVDQGH[SORUHSHFXOLDULW\RISUREOHPVRIZRPHQ¶VRI
*HGHR=RQHLQUHODWLRQDFFHVVWRODQGULJKWV
%HVLGHV DERYH FOXHV UHJDUGLQJ LQDFFHVVLELOLW\ RI ZRPHQ¶V ODQG ULJKWV DQG VHFXULW\ RI WHQXUH *HGHR =RQH
GHVHUYHV VWXG\ EHFDXVH WKHUH KDV EHHQ QR OHJDO UHVHDUFK RQ VXEMHFW PDWWHU LQ WKH VWXG\ DUHD DV IDU DV
UHVHDUFKHUV¶ NQRZOHGJH LV FRQFHUQHG (YHQ WKH OLPLWHG UHVHDUFKHV GRQH RQ UXUDO ZRPHQ DQG ODQG ULJKWV LQ
(WKLRSLD VHHP LQDGHTXDWH WR FRYHU OHJDO DVSHFWV RI ZRPHQ¶V DFFHVV WR ODQGV ULJKWV 0DPLWX IRU H[DPSOH
VWXGLHG DVSHFWV RI WKH VWDWXV RI .RQVR :RPHQ DQG IRXQG WKH\ KDYH VHFRQGDU\ UROHV LQ WKH VRFLHW\ ,Q
VWXG\LQJ VWDWXV RI $UVL 2URPR ZRPHQ 'DQLHO DOVR FRQFOXGHG WKDW WKH FRQGLWLRQ RI ZRPHQ KDV VKRZQ OLWWOH
FKDQJHLQVSLWHRIWKHLQWURGXFWLRQRIPRGHUQHGXFDWLRQEHFDXVHRIKDPSHULQJWUDGLWLRQDOQRUPVDQGYDOXHV ,Q VDPH IDVKLRQ =HQHEHZRUN DOVR UHVHDUFKHG WKH ODQG ULJKWV RI ZRPHQ LQ WKH QRUWKHQ SDUWV RI (WKLRSLD DQG
SRLQWHGRXWWKDWZRPHQ¶VDFFHVVWRODQGRUWKHEHQHILWWKH\FDQGUDZIURPODQGHYHQZKHUHWKH\KDYHOLPLWHG
ULJKWV LW LV VHYHUHO\ OLPLWHG EHFDXVH RI WKH JHQGHUEDVHG GLYLVLRQ RI ODERU SDUWLFXODUO\ WKH FXOWXUDO WDERRV
DJDLQVW ZRPHQ SORXJKLQJ DQG VRZLQJ+RZHYHU WKHVH OLPLWHG VWXGLHV GLG QRW DGGUHVV OHJDO DVSHFWV RI
ZRPHQ¶VDFFHVVWRODQGULJKWV7KXVWKHH[LVWLQJOLPLWHGUHVHDUFKHVDUHQRWDGHTXDWHWRH[SRVHVSHFLDOQDWXUH
RISUREOHPVRI*HGHRZRPHQLQUHODWLRQZLWKDFFHVVWRODQGULJKWV7KXVWKLVVWXG\KDVH[DPLQHGZKHWKHURU
QRW ODQG WKH ODQG OHJLVODWLRQV DUH DFFRPSDQLHG E\ HIIHFWLYH LPSOHPHQWDWLRQ PHFKDQLVPV DQG JRRG ODQG
DGPLQLVWUDWLRQ WR HQKDQFH ZRPHQ¶V DFFHVV WR ODQG ULJKWV DW 611356 OHYHO DQG VHOHFWHG ZRUHGDV RI *HGHR
=RQH
ͳǤ͵Ǥ„Œ‡ –‹˜‡‘ˆ–—†›
ͳǤ͵ǤͳǤ ‡‡”ƒŽ„Œ‡ –‹˜‡
7KHPDLQREMHFWLYHRIWKLVVWXG\LVWRH[DPLQHWKHZRPHQ¶VDFFHVVWRODQGULJKWVLQ6RXWKHUQ(WKLRSLD&DVHRI
*HGHR=RQH
/ŶƚĞƌǀŝĞǁǁŝƚŚƚŽ/LJĂƐƵtĂƋŽ͕ĂďŽǀĞŶŽƚĞϯϲ͘
0DPLWX <LOPD
6RPH $VSHFWV RI WKH 6WDWXV RI :RPHQ DPRQJ WKH .RQVR RI 6RXWKHUQ
(WKLRSLD
$GGLV
$EDED
$GGLV
$EDED
8QLYHUVLW\
0DVWHU¶V
7KHVLV5HWULHYHG
RQ
6HSWHPEHUIURPKWWSKGOKDQGOHQHW
'DQLHO 'HUHVVD
&RQWLQXLW\ DQG &KDQJHV LQ WKH 6WDWXV RI :RPHQ 7KH &DVH RI $UVL
2URPR
/LYLQJ
$GMDFHQW
7R
8SSHU
:DEH
9DOOH\
'RGROD $GGLV
$EDED
8QLYHUVLW\
$GGLV$EDED
ϱϰ
=HQDEDZRUNH7DGHVVH DERYHQRWHSDQG$QZDU$ :RPHQ$FFHVVWRODQG5LJKWVLQ$JDUID:RUHGD
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsv
ͳǤ͵ǤʹǤ’‡ ‹ˆ‹ „Œ‡ –‹˜‡•
7KHVSHFLILFREMHFWLYHVRIVWXG\LQFOXGH
¾ 7RH[DPLQHH[WHQWRIZRPHQ¶VDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD
¾ 7RLQYHVWLJDWHWKHFXUUHQWSUDFWLFHUHJDUGLQJWKHLPSOHPHQWDWLRQRIWKHODQGULJKWVRIZRPHQ
¾ 7RH[DPLQHIDFWRUVWKDWKLQGHUZRPHQ¶VDFFHVVWRODQGULJKWV
ͳǤͶǤ‡•‡ƒ” Š—‡•–‹‘•
7KHPDLQUHVHDUFKTXHVWLRQVWKDWHPHUJHGIURPWKHREMHFWLYHVDUH±
:KDWLVWKHH[WHQWRIUXUDOZRPHQ¶VDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD"
:KDWLVWKHFXUUHQWSUDFWLFHUHJDUGLQJWKHLPSOHPHQWDWLRQRIWKHODQGULJKWVRIZRPHQLQOLJKWRIUHJLRQDO
ODQGXVHDQGDGPLQLVWUDWLRQSROLF\DQGODZVLQWKHVWXG\DUHD"
:KDWDUHWKHIDFWRUVWKDWKLQGHUUXUDOZRPHQDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD"
ͳǤͷǤ‡–Š‘†‘Ž‘‰›‘ˆ–—†›
7KLVUHVHDUFKLVWKHFRPELQDWLRQRIERWKTXDQWLWDWLYHDQGTXDOLWDWLYHLQQDWXUHEHFDXVHLWDLPVWRH[SRVHH[WHQW
RI ZRPHQ¶V DFFHVV WR ODQG ULJKWV LQWHUDFWLRQ RI VWDWXWRU\ ODZ DQG FXVWRPDU\ ODQG KROGLQJ SUDFWLFHV DQG WR
VXSSOHPHQW ZRPHQ¶V DFFHVV WR ODQG ULJKWV ZLWK HPSLULFDO ILQGLQJ H[SRVHG E\ DQDO\VLV RI TXDQWLWDWLYH GDWD
JDWKHUHGIURP>WZRVHOHFWHGZRUHGDVRI*HGHR=RQH@7KHTXDQWLWDWLYHPHWKRGUHOLHVRQTXHVWLRQQDLUHWKDWZLOO
EHGLVWULEXWHGIRUUXUDOZRPHQUHVSRQGHQWVLQUHODWLRQWRZRPHQ¶VDFFHVVWRODQGULJKWVFRYHULQJGLIIHUHQW
LVVXHV4XDOLWDWLYHPHWKRGZLOOSULPDULO\GHSHQGRQLQWHUYLHZV ZLWK *HGHR=RQHNH\LQIRUPDQWVOLNH*HGHR
=RQH ODQG DGPLQLVWUDWLRQ RIILFH VHOHFWHG ZRUHGDV ODQG DGPLQLVWUDWLRQ RIILFHV DQG WKH VHOHFWHG :RUHGDV¶
ZRPHQ¶VDIIDLUVRIILFHRQGLIIHUHQWLVVXHVFRQFHUQLQJZRPHQ¶VDFFHVVWRODQGULJKWV6HFRQGO\WKHUHVHDUFKHUV
ZLOO FRQGXFW LQWHUYLHZ ZLWK WKH PHPEHUV RI ODQG DGPLQLVWUDWLRQ FRPPLWWHH RQ KRZ ODQG UHJLVWUDWLRQ DQG
FHUWLILFDWLRQWDNHSODFH
ͳǤͷǤͳǤ‘—” ‡•‘ˆƒ–ƒ
'DWD WKDW XVHG IRU VWXG\ KDV EHHQ REWDLQHG IURP SULPDU\ DQG VHFRQGDU\ VRXUFHV 3ULPDU\ GDWD KDV EHHQ
FROOHFWHGGLUHFWO\IURPUHVSRQGHQWVXVLQJTXHVWLRQQDLUHVGLVWULEXWHGWRUHVSRQGHQWVSHUVRQDOREVHUYDWLRQVDQG
LQWHUYLHZV0RUHRYHUGLIIHUHQWQDWLRQDOOHJLVODWLRQVDQGLQWHUQDWLRQDOLQVWUXPHQWVZLOOEHHPSOR\HGDVSULPDU\
VRXUFH RI WKLV VWXG\ 6HFRQGDU\ GDWD KDV EHHQ FROOHFWHG WKURXJK UHYLHZ RI UHODWHG OLWHUDWXUHV DQG GLIIHUHQW
ZHEVLWHV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsw
ͳǤͷǤʹǤ‡–Š‘†‘ˆƒ–ƒ‘ŽŽ‡ –‹‘
$4XDQWLWDWLYH'DWD
7KH UHVHDUFK XWLOL]HV ERWK TXDQWLWDWLYH DQG TXDOLWDWLYH GDWD 7KH TXDQWLWDWLYH GDWD GHSHQGV RQ ILHOG GDWD WKDW
ZLOOEHFROOHFWHGXVLQJVWUXFWXUHGTXHVWLRQQDLUHWKDWLQFOXGHTXHVWLRQVRQGLIIHUHQWLVVXHVRQZRPHQ¶VDFFHVVWR
ODQG ULJKWV ,QIRUPDWLRQ KDV EHHQ FROOHFWHG RQ GHPRJUDSKLF DQG VRFLRHFRQRPLF VWDWXV RI UHVSRQGHQWV
0RUHRYHULQIRUPDWLRQKDVEHHQFROOHFWHGRQZRPHQ¶VDFFHVVWRODQGULJKWV7KHTXHVWLRQQDLUHKDVEHHQFRGHG
E\.HEHOHWRGLIIHUHQWLDWHWKHHLJKWVHOHFWHG.HEHOHVLQWZRVHOHFWHG:RUHGDVRI*HGHR=RQH
%4XDOLWDWLYH'DWD
7KHTXDOLWDWLYHGDWDZDVSULPDULO\ FROOHFWHGIURP UHYLHZRIOLWHUDWXUHV IURPERRNVODQGSROLFLHV(WKLRSLDQ
ODZVDQGFXVWRPDU\ODQGKROGLQJV\VWHPWKDWDIIHFWVZRPHQ¶VDFFHVVWRODQGULJKWVDQGVRFLRHFRQRPLFVWDWXV
RI ZRPHQ ,W DOVR LQFOXGHV GDWD ZKLFK ZLOO EH JDWKHUHG RUDOO\ IURP VHOHFWHG HLJKW NHEHOHV IURP VHOHFWHG
:RUHGDVFRQVLGHULQJIRXUNHEHOHVIURPHDFKVHOHFWHGZRUHGDV ,QIRUPDWLRQKDVDOVREHHQ JDWKHUHGE\XVLQJ
GLIIHUHQWPHFKDQLVPVOLNHLQWHUYLHZVZLWK*HGHR=RQHODQGDGPLQLVWUDWLRQRIILFH:RUHGDODQGDGPLQLVWUDWLRQ
RIILFHVHOHFWHG:RUHGDVZRPHQDIIDLUVRIILFH.HEHOHV/DQG$GPLQLVWUDWLRQFRPPLWWHHDQGVHOHFWHG:RUHGDV
RIILFHV RI $JULFXOWXUH DQG 5XUDO 'HYHORSPHQW DQG IRFXV JURXS GLVFXVVLRQV ZLWK UXUDO ZRPHQ LQ VHOHFWHG
NHEHOHV
0RUHRYHUWKHVWXG\KDVEHHQFRQGXFWHGWRKDYHDTXDOLWDWLYHGDWDE\HPSOR\LQJPHWKRGVRIXQVWUXFWXUHGRU
RSHQ HQGHG LQWHUYLHZV IRFXV JURXS GLVFXVVLRQV DQG SHUVRQDO REVHUYDWLRQV DV D SULPDU\ VRXUFH RI GDWD DQG
GRFXPHQWDQDO\VLVSULPDULO\LQFOXGLQJFRXUWFDVHVUHODWHGZLWKZRPHQODQGULJKWV\HDUO\UHFRUGVDQGPLQXWHV
RI D PHHWLQJ FLUFXODUV GLUHFWLYHV SURFODPDWLRQV UHJXODWLRQV MRXUQDOV DQG PDJD]LQHV DV VHFRQGDU\ VRXUFHV
7KHTXDQWLWDWLYHGDWDKDVEHHQFROOHFWHGE\HPSOR\LQJHQXPHUDWRUVEHFDXVHWKH\KDYHJRRGIDPLOLDULW\RIWKH
VWXG\DUHD
ͳǤͷǤ͵Ǥƒ’Ž‡‹œ‡
7KH VWXG\ DUHD KDV EHHQ VHOHFWHG SXUSRVLYHO\ WR DFKLHYH EHWWHU DQG UHOLDEOH UHVXOW IURP VWXG\ )RXU NHEHOHV
IURPWZRVHOHFWHGZRUHGDVLQFOXGLQJ*HGHEDQG<LUJDFKDIHRI*HGHR=RQHKDYHEHHQVHOHFWHGUDQGRPO\IRU
FRQYHQLHQFHVLQFHLWLVGLIILFXOWWRLQFOXGHDOODUHDVRI=RQHLQSHULRGRIUHVHDUFKDQGOLPLWHGEXGJHWDOORFDWHG
IRUMXQLRUUHVHDUFK
3RSXODWLRQRIVWXG\IRUTXDQWLWDWLYHGDWDLVZRPHQIURPHLJKWNHEHOHVWREHVHOHFWHGIURPVHOHFWHGZRUHGDV
5HVHDUFKHUVKDYHSXUSRVHO\LQFOXGHGZRPHQIRUTXHVWLRQQDLUHHDFKNHEHOHORZHVWDGPLQLVWUDWLYHXQLWVLQ
WKHGLVWULFWEHLQJUHSUHVHQWHGE\ZRPHQ4XDOLWDWLYHGDWDKDVEHHQREWDLQHGIURPIRFXVJURXSGLVFXVVLRQV
DQG DGGLWLRQDO GDWD KDV EHHQ JDWKHUHG IURP ILYH RIILFLDOV RI VHOHFWHG ZRUHGDV WKUHH DW ZRUHGDV DQG WZR DW
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsx
NHEHOHOHYHOV WKURXJKSXUSRVLYHFRQVXOWDWLRQIRULQWHUYLHZFRQVLGHULQJNH\LQIRUPDQWVZKRKDYHH[SRVXUHWR
WKH SUREOHP RI ZRPHQ DFFHVV WR ODQG ULJKWV $QG DOVR UHVHDUFKHUV KDYH LQFOXGHG WKUHH PDOHV LQ HDFK IRUXP
JURXS GLVFXVVLRQV DW HDFK NHEHOHV 7RWDOO\ UHVHDUFKHUV KDYH PDGH LQWHUYLHZ ZLWK ILIWHHQ WR WZHQW\ ILYH NH\
LQIRUPDQWV IURP UHOHYDQW JRYHUQPHQW RIILFHV )XUWKHUPRUH UHVHDUFKHUV KDYH FROOHFWHG GDWD IURP 611356
ODQGDGPLQLVWUDWLRQEXUHDXDQGRWKHUUHOHYDQWJRYHUQPHQWRIILFHV
ͳǤͷǤͶǤƒ’Ž‹‰–‡ Š‹“—‡•
7KH VWXG\ KDV HPSOR\HG QRQSUREDELOLW\ VDPSOLQJ VWUDWHJLHV 7KH UHVHDUFKHUV KDYH XVHG WKH FRPELQDWLRQ RI
SXUSRVLYH VDPSOLQJ DQG VQRZEDOO VDPSOLQJ WHFKQLTXHV WR GHWHUPLQH VDPSOH VL]H RI SRSXODWLRQ RI VWXG\ )RU
TXDQWLWDWLYH GDWD FROOHFWLRQ UHVHDUFKHU KDYH XVHG SXUSRVLYH VDPSOLQJ WR FKRLFH IRXU ZRUHGDV DQG HLJKW
NHEHOHV IURP VHOHFWHG ZRUHGDV 5HVHDUFKHUV KDYH SXUSRVHO\ FRQVLGHUHG WZHQW\ FRQVXPHUV IURP HDFK HLJKW
NHEHOHVVHOHFWHGIRUTXHVWLRQQDLUH0RUHRYHUIRUXPJURXSGLVFXVVLRQKDVEHHQPDGHZLWKUHVLGHQWVFKRVHQ
SXUSRVHO\DQGIRUFRQYHQLHQFHIURPHDFKNHEHOHV
5HVLGHQWV ZKR DUH YLFWLPV¶ RI GHQLDO RI DFFHVV WR ODQG ULJKWV KDV EHHQ LGHQWLILHG E\ HPSOR\LQJ VQRZEDOO
VDPSOLQJWHFKQLTXH,QVQRZEDOOVDPSOLQJWHFKQLTXHWKHVDPSOHVL]HLQFUHDVHLQVL]HDVHDFKRIWKHQRPLQHHVLV
DVNHGLQWXUQWRQRPLQDWHWZRRUPRUHIXUWKHUSHUVRQVZKRPLJKWEHLQFOXGHGLQWKHVDPSOHDQGLQRXUFDVH
VXFKVQRZEDOOFRQWLQXHGXQWLOUHVHDUFKHUVREWDLQHGUHOHYDQWGDWDWRDQVZHUUHVHDUFKTXHVWLRQVREMHFWLYHV
ͳǤͷǤͷǤ‡–Š‘†‘ˆƒ–ƒƒŽ›•‹•
,Q WKLV VWXG\ WKH GDWD JDWKHUHG IURP GLIIHUHQW VRXUFHV RI SULPDU\ DQG VHFRQGDU\ VRXUFHV KDV EHHQ DQDO\]HG
GHVFULSWLYHO\ XVLQJ GHVFULSWLYH WRROV RI VWDWLVWLF 'DWD JDWKHUHG IURP WKH TXHVWLRQQDLUH GLVWULEXWHG WR
UHVSRQGHQWV IURP VHOHFWHG NHEHOHV ZDV DQDO\]HG DQG LQWHUSUHWHG E\ XVLQJ WRROV VXFK DV WDEOHV SHUFHQWDJHV
6366VRIWZDUHHWF
ͳǤ͸Ǥ ‘’‡‘ˆ–—†› 7KH VWXG\ LV OLPLWHG WR H[DPLQH ZRPHQ¶V DFFHVV WR ODQG ULJKWV *HRJUDSKLFDOO\ VWXG\ LV GHOLPLWHG WR WZR
ZRUHGDV <LUJDFKDIHDQG*HGHE RI*HGHR=RQHIURP6RXWKHUQ(WKLRSLD,WDOVRH[DPLQHV(WKLRSLDQODQGODZ
OHJLVODWLRQVLQFOXGLQJ611356ODQGOHJLVODWLRQVFRPSDULQJFRQVLVWHQFHRIODZDQGSUDFWLFHLQWKHVWXG\DUHD
ͳǤ͹Ǥ‹‹–ƒ–‹‘•‘ˆ–Š‡–—†›
7KH SRVVLEOH OLPLWDWLRQ ZKLOH DFFRPSOLVKLQJ WKLV VWXG\ ZDV GLIILFXOW\ RI DGGUHVVLQJ LQIRUPDQWV ZLWKLQ WKH
UHVHDUFKHUV¶WLPHIUDPHZRUNDQGPHDJHUEXGJHW7KRXJKWKHQRQSUREDELOLW\VDPSOLQJWKDWZDVHPSOR\HGPD\
DIIHFWILQGLQJVRIVWXG\UHVHDUFKHUVKDYHPDGHXWPRVWFDUHWRUHGXFHGHIHFWLYHQHVVWKDWUHVXOWVIURPVDPSOLQJ
VW\OHV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsy
ͳǤͺǤ‹‰‹ˆ‹ ƒ ‡‘ˆ–—†›
7KLVVWXG\LVVLJQLILFDQWLQPDQ\ZD\V)LUVWLWPD\FKDQJHWKHFXUUHQWVRFLHWDODWWLWXGHWRZDUGVWKHODQGULJKWV
RIZRPHQLQ(WKLRSLDLQJHQHUDODQGLQUXUDONHEHOHVRIVHOHFWHG:RUHGDVRI*HGHR=RQHIURP611356LQ
SDUWLFXODUE\LQGLFDWLQJSROLF\PDNHUV¶NLQGV DQGH[WHQWRIZRPHQ¶VDFFHVVWRODQGULJKWDQGH[SRVLQJZKHWKHU
RUQRWODQGULJKWVDUHHQIRUFHG6HFRQGWKHUHVHDUFKPD\H[SRVHWKHVWDWXVRIUXUDOZRPHQWKHLULQWHJUDWLRQLQ
GHYHORSPHQWDO HIIRUWV DQG PDNH WKHP EHQHILFLDULHV RI ODQG ULJKWV E\ IRUZDUGLQJ WKH LPSURYHPHQW RI
LPSOHPHQWDWLRQRIODQGSROLFLHVDQGODZV7KLUGLWPD\H[SRVHLPSDFWRIFXVWRPDU\ODQGKROGLQJVRQZRPHQ¶V
DFFHVVWRODQGULJKWVLQVWXG\DUHD)RXUWKWKHVWXG\PD\FRQWULEXWHWRFORVHJHQGHUJDEVLQODQGULJKWV)LQDOO\
WKLVVWXG\PD\JLYHLQVLJKWWR JHQGHUDVSHFWRIUXUDOZRPHQ¶VDFFHVVWRODQGULJKW DQGWRGHVLJQIXWXUHODQG
DGPLQLVWUDWLRQUHIRUPVDWQDWLRQDOOHYHODQGLQWKHVWXG\DUHD611356
ͳǤͻǤ”‰ƒ‹œƒ–‹‘‘ˆ–Š‡•–—†›
7KLV VWXG\ KDV EHHQ RUJDQL]HG LQWR ILYH FKDSWHUV 7KH ILUVW FKDSWHU LV DERXW WKH LQWURGXFWLRQ WR WKH VWXG\
HQFRPSDVVLQJWKHJHQHUDOEDFNJURXQGRIWKHVWXG\VWDWHPHQWRIWKHSUREOHPJHQHUDODQGVSHFLILFREMHFWLYHV
RI WKH VWXG\ DQG WKH UHVHDUFK TXHVWLRQV 7KLV SDUW DOVR VHWV RXW WKH GHWDLOHG GDWD FROOHFWLRQ WHFKQLTXHV DQG
SURFHGXUHV RI WKH VWXG\ DQG VFRSH DQG OLPLWDWLRQV 7KH VHFRQG FKDSWHU RI WKH VWXG\ SXWV WKH FRQFHSWXDO
IRXQGDWLRQVRIWKHODQGULJKWDQG LW¶VSURWHFWLRQXQGHU,QWHUQDWLRQDO+XPDQ5LJKW,QVWUXPHQWVDQG([SHULHQFHV
RIRWKHU&RXQWULHVRWKHUMXULVGLFWLRQODZV
7KH WKLUG FKDSWHU RI WKH VWXG\ GHDOV ZLWK WKH ZRPHQ DFFHVV WR ODQG ULJKWV XQGHU (WKLRSLDQ ODQG ODZV 7KH
FRQVWLWXWLRQDO JURXQG IRU SURWHFWLRQ RI ODQG ULJKWV LQ (WKLRSLD IHGHUDWLRQ DQG 611356 ODQG OHJLVODWLRQV KDV
EHHQ LQFOXGHG KHUH LQ WKLV FKDSWHU 0RUHRYHU WKLV FKDSWHU FRYHUV DGHTXDF\ RI H[LVWLQJ ODQG OHJLVODWLRQV DQG
ODQGDGPLQLVWUDWLRQIRUHQIRUFHPHQWRIZRPHQ¶VULJKWWRODQG7KHIRXUWKFKDSWHURIWKHVWXG\DGGUHVVHV WKH
DQDO\VLVDQGILQGLQJVRIWKHRYHUDOOUHVXOWVRIWKHVWXG\WKHPHDQVWRLPSURYHWKHSURWHFWLRQDQGHQIRUFHPHQW
RI ZRPHQ¶V ULJKWV WR ODQG LQ 611356 LQFOXGLQJ *HGHR =RQH DQG RWKHU DUHDV RI (WKLRSLD 7R FRQFOXGH WKH
ILQDO FKDSWHU RI WKH WKLV ZRUN FRYHUV WKH FRQFOXVLRQ DQG VXJJHVWV FHUWDLQ UHFRPPHQGDWLRQV EDVHG RQ WKH
SULPDU\ GDWD JDWKHUHG IURP DQ LQ GHSWK LQWHUYLHZV TXHVWLRQQDLUH DQG IRFXV JURXS GLVFXVVLRQV DV ZHOO DV
SUDFWLFDOILHOGREVHUYDWLRQV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWsz
Šƒ’–‡”™‘
ʹǣŠ‡‘ ‡’–—ƒŽ ‘—†ƒ–‹‘•‘ˆ–Š‡‘‡ǯ• ‡••–‘ƒ†‹‰Š–ƒ† –•”‘–‡ –‹‘
—†‡” –‡”ƒ–‹‘ƒŽ —ƒ‹‰Š– •–”—‡–•ƒ†‘‡•–‹ ƒ†ƒ™•‘ˆ•‘‡
‘—–”‹‡•
ʹǤͳǤ‘ ‡’–•‘ˆ”‘’‡”–›ǡƒ†‹‰Š–•ƒ† ‡••–‘ƒ†‹‰Š–•
/DQGLVRQHIRUPRISURSHUW\7KLVQHFHVVLWDWHVXQFRYHULQJZKDWFRQVWLWXWHVSURSHUW\$OWKRXJKWKHFRQFHSWRI
SURSHUW\ LV HOXVLYH RQH DXWKRU VWDWHG WKDW ³SURSHUW\ UHIHUV WR VRPHWKLQJ WKDW EHORQJV WR DQRWKHU«SURSHUW\
GRHVQRWUHIHUWRDWKLQJLWLVDGHVFULSWLRQRIDOHJDOUHODWLRQVKLSZLWKDWKLQJ,WUHIHUVWRDGHJUHHRISRZHU
WKDWLVUHFRJQL]HGLQODZDVSRZHUSHUPLVVLEO\ H[HUFLVHGRYHUWKHWKLQJ8VXDOO\LWLVWUHDWHGDVD³EXQGOHRI
ULJKWV´7KHSURSHUW\ULJKWH[WHQGVWRHYHU\VSHFLHVRIYDOXDEOHULJKWDQGLQWHUHVWLQFOXGLQJUHDODQGSHUVRQDO
SURSHUW\LQFRUSRUHDOKHUHGLWDPHQWVVXFKDVUHQWVDQGVHUYLFHVULJKWVRIZD\ULJKWVRISURILWRUXVHLQODQGRI
DQRWKHUDQGFKRRVHVLQDFWLRQLQFOXGLQJDWLWOHGULJKWWRODQGRUWRH[SORLWQDWXUDOUHVRXUFHVVXFKDVPLQHUDOV
/LNHHOXVLYHGHILQLWLRQRISURSHUW\H[SODLQHGLQSUHFHGLQJSDUDJUDSKVWKHUHLVQRFRQVHQVXVDPRQJVFKRODUVRQ
WKHGHILQLWLRQRIFRQFHSWRIODQGULJKWV7KHSKUDVHODQGULJKWFRQVLVWRIWZRZRUGVODQGDQGULJKWV /DQGLV
RIWHQ UHIHUUHG WR DV UHDO SURSHUW\ ZKLFK PHDQV SURSHUW\ ZKLFK LV IL[HG DQG LPPRYDEOH ± DV GLVWLQFW IURP
SHUVRQDOSURSHUW\ZKLFKPHDQVSURSHUW\ DVLQJRRGVDQGFKDWWHOV ZKLFKLVQRWIL[HGDQGFDQEHPRYHG
$XWKRUV¶,QYHVWLJDWLRQWRPDMRU(WKLRSLDQSURSHUW\ODZLVQRWKHOSIXOEHFDXVHVXFKOHJLVODWLRQVQHLWKHUGHILQH
WKHSURSHUW\QRUZKDWFRQVWLWXWHVWKHODQG7KLVLQGXFHVUHVHDUFKHUVWRLQTXLUHLQWRODZVRIRWKHUMXULVGLFWLRQV
WKDW DUH KHOSIXO LQ WKLV UHJDUG 8QGHU WKH VHFWLRQ ILYH RI 0DODVLD ODQG FRGH RI ODQG LQFOXGHV D WKDW
VXUIDFHRIWKHHDUWKDQGDOOVXEVWDQFHVIRUPLQJWKDWVXUIDFH E WKHHDUWKEHORZWKHVXUIDFHDQGDOOVXEVWDQFHV
WKHUHLQ F DOO YHJHWDWLRQ DQG RWKHU QDWXUDO SURGXFWV ZKHWKHU RU QRW UHTXLULQJ WKH SHULRGLFDO DSSOLFDWLRQ RI
ODERXU WR WKHLU SURGXFWLRQ DQG ZKHWKHU RQ RU EHORZ WKH VXUIDFH G DOO WKLQJV DWWDFKHG WR WKH HDUWK RU
SHUPDQHQWO\IDVWHQHGWRDQ\WKLQJDWWDFKHGWRWKHHDUWKZKHWKHURQRUEHORZWKHVXUIDFHDQG H ODQGFRYHUHG
E\ZDWHU0RUHRYHURQHDXWKRUIURP&RPPRQODZZULWHVWKHWHUPODQGPHDQW³WKHVXUIDFHRIWKH(DUWKWKH
VRLOEHQHDWKWKHVXUIDFHWRWKHFHQWUHRIWKH(DUWKDQGWKHFROXPQRIDLUDERYHWKHVXUIDFH,WLQFOXGHGDOOWKLQJV
JURZLQJRQRUDIIL[HGWRWKHVRLOVXFKDVWUHHVFURSVDQGEXLOGLQJV,WDOVRLQFOXGHGDOOWKHPLQHUDOVLQWKHVRLO
H[FHSWLQJJROGDQGVLOYHUZKLFKDWODZEHORQJHGWRWKH&URZQDVUR\DOPHWDOV´
+RZHYHUWKHVFRSHRIFRQFHSWRIODQGDQGODQGULJKWVDIWHUWZHQW\FHQWXU\LVVXEMHFWWROLPLWDWLRQE\VWDWXWRU\
ODZDQGFRPHVLQFUHDVLQJO\XQGHUFKDOOHQJHDWODZVRIGLIIHUHQWOHJDOV\VWHP$VH[DPSOHVLQ8.RZQHUVKLS
-RKQ6KHHKDQ *DUULFN6PDO 7RZDUGVD'HILQLWLRQRI3URSHUW\5LJKWV&KULVWFKXUFK1HZ=HDODQGS
,ELG
*-'RQQHOO\ )XQGDPHQWDOVRI/DQG2ZQHUVKLS/DQG%RXQGDULHVDQG6XUYH\LQJ,&60S
*-'RQQHOO\ 3
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWs{
RIWKHDLUVSDFHDERYHWKHODQGVXUIDFHLVTXDOLILHGE\$LU1DYLJDWLRQ$FWVDQGXQUHJLVWHUHGZD\OHDYHVWKH
VXUIDFH RZQHU GRHV RZQ WKH DLUVSDFH DERYH WKHLU ODQG LQ WKH VHQVH WKDW VXEMHFW WR EXLOGLQJ UHJXODWLRQV DQG
HDVHPHQWVXQGHU(OHFWULFLW\(DVHPHQWV$FWV 7KH,QWHUQDWLRQDOKXPDQULJKWVLQVWUXPHQWVGRQRWGHILQHWKHFRQFHSWVRIULJKWWRODQGDQGDFFHVVWRODQGDQG
WKH FRQFHSWV UHPDLQ LPSUHFLVH 1HLWKHU GRHV (WKLRSLDQ ODZ GHILQH ODQG ULJKWV QRU DFFHVV WR ODQG ULJKWV
'HVSLWHGLIILFXOW\RIGHILQLQJULJKWVWRODQGGLIIHUHQWVFKRODUVKDYHWULHGWRSURYLGHVHYHUDOGHILQLWLRQVWRODQG
ULJKWV $PRQJ GHILQLWLRQV RI ODQG ULJKWV $JDUZDO GHILQHV ULJKWV WR ODQG DV OHJDOO\ DQG VRFLDOO\
UHFRJQL]DEOHFODLPVWKDWDUHHQIRUFHDEOHE\H[WHUQDODXWKRULWLHVVXFKDVYLOODJHEDVHGLQVWLWXWLRQVRUWKHVWDWH
OHJLVODWLRQ¶V PHFKDQLVPV 7KH ULJKWV WR ODQG LQFOXGH RZQHUVKLS DQG XVXIUXFW RU XVH ULJKWV ERWK DVVRFLDWHG
ZLWKYDU\LQJGHJUHHVRIIUHHGRPWROHDVHEHTXHDWKRUVHOOWKHODQG
7KH H[WHQW RI WKH ULJKWV UHODWHG WR ODQG LV H[DPLQHG IURP WKH YLHZSRLQW RI WKH UDQJH RI ULJKWV SHUVSHFWLYH
7KHVH LQFOXGH ULJKWV ULJKW WR XVH LQKHULW UHQWDO FRQWUDFWLQJ PRUWJDJLQJ VHOOLQJ EHTXHDWKLQJ LQYHVWLQJ
SURWHFWLRQLQUHODWLRQWRGLVSXWHVDQGFRPSHQVDWLRQLQUHODWLRQWRH[SURSULDWLRQ DVZHOODVUHVWULFWLRQVRQWKHVH
ULJKWV5HVWULFWLRQVRQWKHVHULJKWVLQFOXGHUHVWULFWLRQVRQXVHULJKWVOLNHSURKLELWLRQRIWUHHSODQWLQJRQDUDEOH
ODQGGXWLHVWRFRQVHUYHWKHODQGGXWLHVWRXVHWKHODQGLQD VXVWDLQDEOHZD\DQGGXWLHVWRXVHWKHODQG QRW
OHDYH LW LGOH 5HVWULFWLRQV RQ ODQG UHQWLQJ PD\ EH UHVWULFWLRQV RQ GXUDWLRQ RI FRQWUDFWV UHQWDO SULFHV DQG D
UHTXLUHPHQW WR IRUPDOL]H VXFK FRQWUDFWV E\ PDNLQJ WKHP ZULWWHQ DQG UHSRUWHG WR WKH DSSURSULDWH IRUPDO
DXWKRULW\6WURQJUHVWULFWLRQVLPSO\QRQH[LVWHQFHRIFHUWDLQULJKWVOLNH PDNLQJVDOHRUPRUWJDJLQJRIODQG
LOOHJDO,QKHULWDQFHULJKWVPD\DOVREHUHVWULFWHGZLWKLQWKHIDPLO\WRFHUWDLQIDPLO\PHPEHUVOLNHWRWKHROGHVW
VRQRUGDXJKWHURUEHUHTXLUHGWREHHTXDOO\VKDUHGDPRQJWKHFKLOGUHQ5HVWULFWLRQVPD\DOVREHLPSRVHGRQ
KRZODQGLVVKDUHGXSRQGHDWKRIRQHVSRXVHRUXSRQGLYRUFH 6XFKUHVWULFWLRQVPD\VWUHQJWKHQWKHULJKWRI
VRPHW\SHVRISHUVRQVHJPHQDWWKHH[SHQVHRIRWKHUVOLNHZRPHQDQGJLUOV
ʹǤʹǤƒ–‹‘ƒŽ‡ˆ‘””‘–‡ –‹‘‘ˆƒ†‹‰Š–•
7KHUHDUHGLIIHUHQWUHDVRQVWKDWMXVWLI\SURWHFWLRQRIODQGULJKWVLQJHQHUDODQGZRPHQDFFHVVWRODQGULJKWVLQ
SDUWLFXODU5XUDOSRYHUW\LVPXVFXODUO\OLQNHGZLWKSRRUDFFHVVWRODQGULJKWVHLWKHULQWKHIRUPRIODQGOHVVQHVV
,ELG
(OLVDEHWK:LFNHULDQG$QLO.DOKDQ /DQG5LJKWV,VVXHVLQ,QWHUQDWLRQDO+XPDQ5LJKWV/DZ3
$JDUZDO :RPHQ$FFHVVWRODQG5LJKWVLQ'HYHORSLQJ1DWLRQV
ϲϮ
5HNKD0HKUD DERYHQRWHS
7HZRGURV 7HIHUD DQG 6WHLQ +ROGHQ )URP %HLQJ 3URSHUW\ RI 0HQ WR %HFRPLQJ (TXDO 2ZQHUV" (DUO\ ,PSDFWV RI /DQG
5HJLVWUDWLRQDQG&HUWLILFDWLRQRQ:RPHQLQ6RXWKHUQ(WKLRSLD81+$%,7$76KHOWHU%UDQFKS
ϲϰ
/ďŝĚ
ϲϱ
ŝďŝĚ
ϲϲ
ŝďŝĚ
ϲϭ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtr
RUEHFDXVHRILQVHFXUHDQGFRQWHVWHGODQGULJKWV6HFXUHSURSHUW\ULJKWVLQFOXGLQJODQGULJKWVLVUHOHYDQWIRU
JURZWKDQGIRUWKHSRYHUW\DWWHQXDWLRQ6WXG\LPSOLHVLQFUHDVHGODQGDFFHVVIRUWKHSRRUFDQDOVREULQJGLUHFW
EHQHILWVRISRYHUW\DOOHYLDWLRQ ,QFRXQWULHVZKHUHDJULFXOWXUHLVDPDLQHFRQRPLFDFWLYLW\DFFHVVWRODQGLVD
IXQGDPHQWDOPHDQVZKHUHE\WKHSRRUFDQHQVXUHKRXVHKROGIRRGVXSSOLHVDQGJHQHUDWHLQFRPH 7KLVDSSOLHV
ERWK WR VRFLHWLHV LQ ZKLFK VXEVLVWHQFH DJULFXOWXUH LV SUHYDOHQW ZKHUH DFFHVV WR ODQG LV WKH PDQGDWRU\ IRU
KRXVHKROG IRRG VDIHW\ DQG WR VRFLHWLHV ZKHUH DJULFXOWXUH LV PRUH PDUNHWRULHQWHG LQ ZKLFK IDPLO\ IDUPLQJ
SURYLGHV D PDLQ EDVLV RI HPSOR\PHQW JHQHUDWLQJ WKH LQFRPH ZLWK ZKLFK WR DFTXLUH IRRG (YHQ ZKHUH
DJULFXOWXUHDQGODQGDUHEHFRPLQJOHVVLPSRUWDQWZLWKWKHJURZWKRIDOWHUQDWLYHVRXUFHVRILQFRPHVHFXUHODQG
ULJKWV SURYLGH D YDOXDEOH VRXUFH RI LQFRPH IRU LQYHVWPHQW UHWLUHPHQW RU VHFXULW\ LQ FDVH RI XQHPSOR\PHQW
ZKLFKLVWUXHIRUZRPHQ
6HFXUH ULJKWV WR ODQG DUH DOVR D EDVLV IRU VKHOWHU IRU DFFHVV WR VHUYLFHV DQG IRU FLYLF DQG SROLWLFDO
SDUWLFLSDWLRQ/DQG ULJKWV DUH DV ZHOO D VRXUFH RI ILQDQFLDO VHFXULW\ DV FROODWHUDO WR UDLVH FUHGLW RU DV D
WUDQVIHUDEOHDVVHWWKDWFDQEHVROGUHQWHGRXWPRUWJDJHGORDQHGRUEHTXHDWKHG7KDWPHDQVODQGULJKWVFDQ
EHDYLWDOVRXUFHRIFDSLWDOZKLFKRSHQVSHUVRQDOFUHGLWPDUNHWVOHDGVWRLQYHVWPHQWVLQWKHODQGSURYLGHVD
VRFLDOVDIHW\QHWDQGWUDQVIHUVZHDOWKWRWKHQH[WJHQHUDWLRQ
0RUHRYHUVHFXUHDFFHVVWRODQGULJKWFUHDWHVLQFHQWLYHVIRUWKHXVHUWRLQYHVWODERXUDQGRWKHUUHVRXUFHVLQLW
VRDVWRPDLQWDLQRUHQKDQFHLWVYDOXHDQGVXVWDLQLWVSURGXFWLYLW\,QDGGLWLRQVWXGLHVUHYHDOWKDWDSRVLWLYH
UHODWLRQVKLS EHWZHHQ DFFHVV WR HTXLWDEO\ GLVWULEXWHG ODQG DQG HFRQRPLF JURZWK:KLOH KLVWRU\ SURYLGHV
H[DPSOHVRIFRXQWULHVWKDWKDYHGHYHORSHGZLWKYHU\XQHTXDOODQGGLVWULEXWLRQV IRULQVWDQFHLQ*UHDW%ULWDLQLQ
WKH WK DQG WK FHQWXULHV UHVHDUFK VKRZV WKDW RYHU WKH SHULRG RI FRXQWULHV ZLWK D PRUH
HJDOLWDULDQGLVWULEXWLRQRIODQGWHQGHGWREHFKDUDFWHUL]HGE\KLJKHUOHYHOVRIHFRQRPLFJURZWK:KHUHODQG
ULJKWVDUHKLJKO\FRQFHQWUDWHGLQWKHKDQGVRIPDOHLQHTXDOLWLHVPD\VHHGDVHQVHRILQMXVWLFHH[SRVLQJZRPHQ
SRSXODWLRQ WR SRYHUW\ 7KH H[SHULHQFH RI VHYHUDO (DVW $VLDQ FRXQWULHV 6RXWK .RUHD 7DLZDQ VKRZV KRZ D
UHIRUPUHVXOWLQJLQPRUHHTXLWDEOHODQGGLVWULEXWLRQLVIXQGDPHQWDOLQFUHDWLQJWKHEDVLVIRUVXVWDLQHGHFRQRPLF
/RURQ]R&KRWXODHWDO %HWWHUODQG$FFHVVIRUWKH5XUDO3RRU7KH/HVVRQVIURP([SHULHQFHDQG&KDOOHQJHVDKHDG,,('
)$2S
LELG
LELG
LELG
LELG
LELG
5HNKD0HKUD DERYHQRWHS
/RURQ]R&KRWXODHWDO VXSUDQRWHDERYHS
LELG
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWts
GHYHORSPHQW ,Q RWKHU ZRUGV VRFLDO MXVWLFH DQG HTXLW\ FRQFHUQV GHPDQG WKDW HTXDO DFFHVV WR ODQG ULJKWV
VXSSRUWDQGLPSURYHWKHDJUDULDQVWUDWHJ\VWUXJJOHVIRUVXUYLYDODQGOLYHOLKRRG
)XUWKHUPRUH ODQG RZQHUVKLS DQG RWKHU ODQG ULJKWV FRQIHU HFRQRPLF EHQHILWV DV LQSXW LQWR DJULFXOWXUDO
SURGXFWLRQDVDVRXUFHRILQFRPHIURPUHQWDO RUVDOHDQGDVFROODWHUDOIRUFUHGLWWKDWFDQEHXVHGIRUHLWKHU
FRQVXPSWLRQRULQYHVWPHQWSXUSRVHV)RUUHDVRQVPHQWLRQHGDERYHWKHZRPHQPD\QRWIXOO\VKDUHHFRQRPLF
EHQHILWV LI WKH\ GR QRW KDYH DFFHVV WR ODQG ULJKWV ,Q DGGLWLRQ VWXG\ LPSOLHV ZRPHQ ZLWK VWURQJHU SURSHUW\
ULJKWVWRODQGDUHOHVVOLNHO\WREHFRPHHFRQRPLFDOO\YXOQHUDEOHLQWKHLUROGDJHRULQWKHHYHQWRIWKHGHDWKRI
RUGLYRUFHRUDEDQGRQPHQWIURPDVSRXVH
$V ZHOO DFFHVV WR ODQG DIIHFWV D EURDG UDQJH RI IXQGDPHQWDO KXPDQ ULJKWV ,Q ERWK XUEDQ DQG UXUDO DUHDV
LQGLYLGXDOV UHO\ RQ WKH DYDLODELOLW\ RI DGHTXDWH SORWV RI ODQG IRU VKHOWHU DQG WKH DYDLODELOLW\ RI RWKHU EDVLF
QHHGV,QUXUDODUHDVLQSDUWLFXODUWKHUHDOL]DWLRQRIWKHULJKWWR IRRGLVLQWLPDWHO\WLHGWRWKHDYDLODELOLW\ RI
ODQGRQZKLFKWR JURZ FURSV$GGLWLRQDOULJKWVLQFOXGLQJWKHULJKWWRZDWHUWKHULJKWWRKHDOWKWKHULJKWWR
ZRUNDUHDOOWLHGWRDFFHVVWRODQG
ʹǤ͵Ǥ‘‡̵•‡•–”‹ –‡†ƒ†‹‰Š–•
/DQGRZQHUVKLSRUSRVVHVVLRQPD\HQWDLOWKHOHJDOUHVWULFWLRQVWKDWTXDOLI\WKHFRQWUROZKHUHDVXVHULJKWVPD\
RIIHUHIIHFWLYHFRQWURO7KHZRPHQDFFHVVWRODQGULJKWVVKRXOGFRQWDLQLQGHSHQGHQWDQGVHFXUHULJKWVWRODQG
IRUZRPHQ2QHDXWKRUDUJXHVWKDWDQLPSRUWDQWFRPSRQHQWRIZRPHQDFFHVVWRODQGULJKWLVDQLQGHSHQGHQW
ULJKWWRODQGZKLFKZRXOGPHDQWKDWZRPHQVKRXOGKDYHLQGHSHQGHQWWLWOHWRODQG$OWKRXJKMRLQWWLWOHZLWKD
VSRXVHLVSUHIHUDEOHWRQRQHLQGHSHQGHQWWLWOHZRXOGSHUPLWZRPHQPXFKJUHDWHUDXWRQRP\DQGHQKDQFHWKHLU
DFFHVV WR ODQG ULJKWV FKRLFHVWR PDNH WKHLU RZQ GHFLVLRQV DERXW ODQG XVH SULRULWLHV WR FRQWURO RXWSXW WR
HVFDSHPDULWDOFRQIOLFWDQGWRKDYHVHFXUHDFFHVVWRDPHDQVRIHDUQLQJDOLYLQJLQFDVHRIPDULWDOEUHDNXSRU
RI D VSRXVH V GHDWK :RPHQ FRXOG DOVR REWDLQ VXFK LQGHSHQGHQW ULJKWV ZLWKLQ FRPPXQLW\EDVHG V\VWHPV
ZKHUHXVHSUHYDLOVRYHUWLWOHV
7KH ODQG ULJKWV LQFOXGH ULJKWV WR XVH LQKHULW UHQWDO FRQWUDFWLQJ PRUWJDJLQJ VHOOLQJ EHTXHDWKLQJ LQYHVWLQJ
SURWHFWLRQ LQ UHODWLRQ WR GLVSXWHV DQG FRPSHQVDWLRQ LQ UHODWLRQ WR H[SURSULDWLRQ 5HVWULFWLRQV RQ WKHVH ULJKWV
LELG
(OLVD6FDOLVH :RPHQ¶V,QKHULWDQFH5LJKWVWR/DQGDQG3URSHUW\LQ6RXWK$VLD$6WXG\RI$IJKDQLVWDQ%DQJODGHVK,QGLD
1HSDO3DNLVWDQDQG6UL/DQND5XUDO'HYHORSPHQW,QVWLWXWHS
,ELG
,ELGS
,ELG
5HNKD0HKUD DERYHQRWHS
$JDUZDO DERYHQRWH
ϴϯ
ŝďŝĚ
ϴϰ
5HNKD0HKUD DERYHQRWHS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtt
LQFOXGHUHVWULFWLRQVRQXVHULJKWVOLNHSURKLELWLRQRIWUHHSODQWLQJRQDUDEOHODQGGXWLHVWRFRQVHUYHWKHODQG
GXWLHVWRXVHWKHODQGLQDVXVWDLQDEOHZD\DQGGXWLHVWRXVHWKHODQG QRWOHDYHLWLGOH 5HVWULFWLRQVRQODQG
UHQWLQJ PD\ EH UHVWULFWLRQV RQ GXUDWLRQ RI FRQWUDFWV UHQWDO SULFHV DQG D UHTXLUHPHQW WR IRUPDOL]H VXFK
FRQWUDFWV E\ PDNLQJ WKHP ZULWWHQ DQG UHSRUWHG WR WKH DSSURSULDWH IRUPDO DXWKRULW\ 6WURQJ UHVWULFWLRQV OLNH
PDNLQJVDOHRUPRUWJDJLQJRIODQGLOOHJDOLPSO\QRQH[LVWHQFHRIFHUWDLQULJKWV,QKHULWDQFHULJKWVPD\DOVREH
UHVWULFWHGZLWKLQWKHIDPLO\WRFHUWDLQIDPLO\PHPEHUVOLNHWRWKHROGHVWVRQRUGDXJKWHURUEHUHTXLUHGWREH
XQHTXDOO\VKDUHGDPRQJWKHPDOHDQGIHPDOHFKLOGUHQ/DQGULJKWVUHVWULFWLRQVPD\DOVREHLPSRVHGRQKRZ
ODQGLVVKDUHGXSRQGHDWKRIRQHVSRXVHRUXSRQGLYRUFH
6XEVWDQWLDOGLIIHUHQFHVH[LVWEHWZHHQSDWULOLQHDODQGPDWULOLQHDOVRFLHWLHVUHJDUGLQJODQGULJKWVUHVWULFWLRQVZLWK
ZRPHQKDYLQJVWURQJHUODQGULJKWVXQGHUWKHPDWULOLQHDOVRFLHW\)XUWKHUPRUHLQPRVWFDVHVULJKWVLQDUDEOH
ODQG DUH DOORFDWHG E\ WKH OLQHDJH DXWKRULW\ WR WKHPDOH KRXVHKROG KHDG ZRPHQ KDYH VHFRQGDU\ DQG GHULYHG
ULJKWV REWDLQHG WKURXJK WKHLU UHODWLRQVKLS ZLWK PDOH IDPLO\ PHPEHUV KXVEDQGV IDWKHUV EURWKHUV RU VRQV 8QGHU PDQ\ FXVWRPDU\ V\VWHPV ZRPHQ¶V LQKHULWDQFH ULJKWV DUH OLPLWHG QRW RQO\ ZLWKLQ SDWULOLQHDO V\VWHPV
ZKHUH SURSHUW\ GHYROYHV DORQJ WKH PDOH OLQH WR WKH H[FOXVLRQ RI ZRPHQ EXW DOVR LQ PDWULOLQHDO V\VWHPV
ZKHUH DOWKRXJK SURSHUW\ WUDFHV WKURXJK WKH PRWKHU¶V OLQH ODQG FRQWURO XVXDOO\ UHVWV ZLWK PDOH IDPLO\
PHPEHUV
HURGLQJZRPHQ¶VODQGULJKWV
ʹǤͶǤ”‘–‡ –‹‘ƒ†ˆ‘” ‡‡–‘ˆƒ†‹‰Š–•—†‡” –‡”ƒ–‹‘ƒŽ —ƒ‹‰Š–
•–”—‡–•
7KURXJK WKH WLPHV ZRPHQ KDYH EHHQ VXEMHFW WR GLVFULPLQDWLRQ LQ DOO VWDJHV RI OLIH LQ LQFRPH HGXFDWLRQ
KHDOWKDQGSDUWLFLSDWLRQLQVRFLHW\DQGWKH\DUH SDUWLFXODUO\YXOQHUDEOHWRVSHFLILFYLRODWLRQVVXFKDVJHQGHU
EDVHGYLROHQFHDQGGLVFULPLQDWLRQWLRQLQUHODWLRQWRSURSHUW\ULJKWVLQFOXGLQJDFFHVVWRODQGULJKWV'LIIHUHQW
KXPDQ ULJKWV V\VWHPV KDYH EHHQ HPHUJHG ZLWK WKH DLP RI HUDGLFDWLQJ SROLFLHV DFWLRQV DQG QRUPV WKDW
SHUSHWXDWHGLVFULPLQDWLRQDJDLQVWZRPHQµULJKWVLQFOXGLQJODQGULJKWV
ʹǤͶǤͳǤ –‡”ƒ–‹‘ƒŽ —ƒ‹‰Š–•–ƒ†ƒ”†•ˆ‘”ƒ†ƒ†”‘’‡”–›‹‰Š–•
,QUHFHQW\HDUVDWWHQWLRQKDVEHHQGHYRWHGWRJHQGHUDWERWKQDWLRQDODQGLQWHUQDWLRQDOOHYHOVDQGFRQVLGHUDEOH
HIIRUWV KDYH EHHQ PDGH WR LPSURYH ZRPHQ¶V SRVLWLRQ LQ VRFLHW\ LQ JHQHUDO DQG WKHLU OHJDO DFFHVV WR ODQG LQ
SDUWLFXODU,QWHUQDWLRQDOO\WKHUHH[LVWZHOODUWLFXODWHGULJKWVDQGH[SHFWDWLRQVUHODWLQJWRODQGULJKWV
ϴϱ
7HZRGURV7HIHUDDQG6WHLQ+ROGHQ DERYHQRWHS͘ϲ
/ďŝĚ͘
ŝďŝĚ
ϴϴ
/RURQ]R&KRWXODHWDO DERYHQRWHS
ϴϵ
ŝďŝĚ
ϵϬ
/RURQ]R&KRWXODHWDO DERYHQRWHS
ϴϲ
ϴϳ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtu
$ FRQYHQLHQW VWDUWLQJ SRLQW IRU H[DPLQLQJ PRGHUQ KXPDQ ULJKWV LV WKH 8QLYHUVDO 'HFODUDWLRQ +XPDQ
5LJKWV KHUHDIWHU8'+5 $UWLFOH RIWKH8'+5VWDWHV(YHU\RQHKDVWKHULJKWWRDVWDQGDUGRIOLYLQJIRU
KLPVHOIDQGKLVIDPLO\LQFOXGLQJULJKWVWR«KRXVLQJDQGPHGLFDOFDUHDQGQHFHVVDU\VRFLDOVHUYLFHV)XUWKHU
$UWLFOH RI WKH 8'+5 HQVKULQHV WKH ULJKW WR RZQ SURSHUW\ 7KLV KDV WR EH UHDG DORQJVLGH WKH JHQHUDO
SULQFLSOHVLQ8'+5VXFKDVQRQGLVFULPLQDWLRQ $UWLFOH DQGHTXDOULJKWVIRUPHQDQGZRPHQ $UWLFOH $OEHLW 8'+5¶V IDLOXUHV WR UHFRJQL]H ODQG ULJKWV RI ZRPHQ H[SUHVVO\ RQH PD\ LQWHUSUHW $UWLFOH RI WKH
8'+5WKDWUHFRJQL]HJHQHUDOSURSHUW\ULJKWLQFRPELQDWLRQZLWK HTXDOLW\FODXVHRI$UWRI8'+5WRFRYHU
ZRPHQODQGULJKWV
7KHFHQWUDOLQWHUQDWLRQDOLQVWUXPHQWLQUHODWLRQWRODQGLVWKH,QWHUQDWLRQDO&RYHQDQWRQ(FRQRPLF6RFLDO
DQG&XOWXUDO5LJKWV KHUHDIWHU,&(6&5 ZKLFKFDOOVIRUQRQGLVFULPLQDWLRQDQGSURJUHVVLYHUHDOL]DWLRQRIWKH
ULJKWVXQGHULWV$UWLFOHZKLOHVWLSXODWLQJHTXDOULJKWVRIPHQDQGZRPHQLQWKHHQMR\PHQWRIDOOHFRQRPLF
VRFLDODQGFXOWXUDOULJKWVLQLWV$UWLFOH7KHNH\SURYLVLRQLQUHODWLRQWRVHFXUHWHQXUHDQGDFFHVVWRODQGULJKW
LVIRXQGLQ$UWLFOH RI,&(6&5ZKLFKVWDWHVµ7KH6WDWHV3DUWLHVWRWKH ,&(6&5UHFRJQL]HWKHULJKWRI
HYHU\RQHWRDQDGHTXDWHVWDQGDUGRIOLYLQJIRUKLPVHOIDQGKLVIDPLO\LQFOXGLQJDGHTXDWHIRRGFORWKLQJDQG
KRXVLQJ DQG WR WKH FRQWLQXRXV LPSURYHPHQW RI OLYLQJ FRQGLWLRQV¶ $JDLQ WKHVH SURYLVLRQV RI ,&(6&5 DUH
YDJXH VR WKDW UHFRJQLWLRQ RI ZRPHQ DFFHVV WR ODQG ULJKWV FDQ EH LPSOLHG IURP LQWHUSUHWDWLRQ RI WHUPV RI
LQVWUXPHQW
/DQGULJKWVDUHDOVRZHOOHVWDEOLVKHGDVFLYLODQGSROLWLFDOULJKWV$FFRUGLQJO\$UWLFOHRI&RQYHQWLRQ&LYLO
DQGSROLWLFDOULJKWV KHUHDIWHU,&&35 SURYLGHVWKH6WDWHV3DUWLHVWRWKH,&&35XQGHUWDNHWRHQVXUHWKHHTXDO
ULJKW RI PHQ DQG ZRPHQ WR WKH HQMR\PHQW RI DOO FLYLO DQG SROLWLFDO ULJKWV VHW IRUWK LQ WKH ,&&35¶ 7KLV LV
JXDUDQWHHG WKURXJK WKH SURFHVV RI QRQGLVFULPLQDWLRQ $UWLFOH JHQGHU HTXDOLW\ $UWLFOH GXULQJ DQG DW
GLVVROXWLRQRIPDUULDJH $UWLFOH FKRLFHRIUHVLGHQFH $UWLFOH HTXDOLW\EHIRUHFRXUWV $UWLFOH DQG
SURWHFWLRQEHIRUHWKHODZ $UWLFOH 7KRXJKWKH ,&&35SURYLGHVERWKLQWHUQDWLRQDOQRUPVDQGSURFHGXUDO
JXDUDQWHHV IRU JHQGHU HTXDOLW\ DQG WKH SURWHFWLRQ RI SURSHUW\ ULJKWV LW GRHV QRW H[SUHVVO\ UHFRJQL]H ZRPHQ
DFFHVVWRODQGULJKWV
7KH KXPDQ ULJKWV DSSURDFK WR DFFHVV WR ODQG ULJKWV HQWDLOV HQKDQFHG SURWHFWLRQ RI WKLV ULJKW IRU YXOQHUDEOH
FDWHJRULHVLQFOXGLQJZRPHQ$FFRUGLQJO\WKH,QWHUQDWLRQDO&RQYHQWLRQRQWKH(OLPLQDWLRQRI$OO)RUPV
RI 5DFLDO 'LVFULPLQDWLRQ KHUHDIWHU ,&(5' DQG WKH &RQYHQWLRQ RQ WKH (OLPLQDWLRQ RI $OO )RUPV RI
'LVFULPLQDWLRQ DJDLQVW :RPHQ KHUHDIWHU &('$: FRQWDLQ VSHFLILF JXDUDQWHHV UHJDUGLQJ SURSHUW\ ULJKWV
1HYHUWKHOHVVQRQHRIWKHVHLQWHUQDWLRQDOKXPDQULJKWVLQVWUXPHQWVUHFRJQL]HZRPHQDFFHVVWRODQGULJKWVE\
6LUDM6DLWDQG+LOLDU\/LP /DQG/DZDQG,VODP3URSHUW\DQG+XPDQ5LJKWVLQ0XVOLP:RUOG=HG%RRNV/RQGRQDQG
1HZ\RUNS
ϵϮ
/ďŝĚ͘
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtv
QDPH EH\RQG JXDUDQW\LQJ JHQHUDO SURSHUW\ ULJKWV ZKLFK LV VXEMHFW RI LQWHUSUHWDWLRQ ,Q RWKHU ZRUGV VR IDU
XQGHULQWHUQDWLRQDOKXPDQULJKWVLQVWUXPHQWVWKHVFRSHDQGGHSWKRIZRPHQDFFHVVWRODQGULJKWV GHSHQGRQ
MXGLFLDU\LQWHUSUHWDWLRQRIYDJXHODZV
2QHDXWKRUULJKWO\ZURWHWKHPHUHH[LVWHQFHRIKXPDQULJKWVGRHVQRWJXDUDQWHHWKHLULPSOHPHQWDWLRQVLQFHWKH
HQIRUFHPHQWRIKXPDQULJKWVLVSUREOHPDWLFGXHWRWZRUDWLRQDOHV3ULPDULO\KHDUJXHVWKHLQKHUHQWQDWXUH
DQGVFRSHRISDUWLFXODUULJKWVPD\PDNHLWGLIILFXOWWRUHDOL]HWKHPLQVSHFLILFFRQWH[WV6HFRQGO\KHVWDWHV
WKHUHPD\EHDODFNRISROLWLFDOZLOOLQWKHGULYHWRZDUGVULJKWVIXOILOOPHQW$XWKRUVRIWKLVZRUNEHOLHYHWKDW
WKHVDPHGLIILFXOW\KROGVLQWKHFDVHRIZRPHQDFFHVVWRODQGULJKWV7KHSURPRWLRQRIODQGDQGSURSHUW\ULJKWV
KDVEHHQGULYHQE\ JOREDOLQLWLDWLYHVVHHNLQJWR SULRULWL]HDQGPDLQVWUHDPWKHVHULJKWV )RULQVWDQFHZRPHQ
DFFHVV WR ODQG VWUDWHJ\ KDV EHHQ VXSSRUWHG E\ WKH ZRUN RI WKH 81 &RPPLVVLRQ RQ WKH 6WDWXV RI :RPHQ
UHJDUGLQJ+XPDQ5LJKWVDQG/DQG5LJKWV'LVFULPLQDWLRQ 5HVROXWLRQ 7KHLQWHUQDWLRQDOUHJLPH
IRU WKH SURPRWLRQ DQG SURWHFWLRQ RI WKH ULJKWV WR ODQG DQG KRXVLQJ GHULYHV IURP WKH ZRUN RI WKH 81
&RPPLVVLRQRQ+XPDQ6HWWOHPHQWV 81&+6ZKLFKEHFDPH81+$%,7$7LQ +RZHYHUZLWKLQWKH
LQWHUQDWLRQDOKXPDQULJKWVIUDPHZRUNJHQGHUULJKWVDUHQRWDOZD\VSULRULWL]HGWKHLUULJKWVKDYHEHHQLJQRUHG
DQGGHQLHGVLQFHWLPHLPPHPRULDO
7KHPRYHPHQWIRUPDLQVWUHDPLQJZRPHQ¶VULJKWVDVKXPDQULJKWVGHYHORSHGWKURXJKOREE\LQJDWVXFFHVVLYH
ZRPHQ¶VFRQIHUHQFHV0H[LFR &RSHQKDJHQ 1DLUREL &DLUR DQG%HLMLQJ JLYLQJULVHWRDVHULHVRIUHVROXWLRQVIURPDYDULHW\RIJURXSVRQZRPHQDQGSURSHUW\
7KRXJK WKH FRQFOXVLRQV RI VXFK FRQIHUHQFHV FDQ EH FRQVLGHUHG DV UHIOHFWLQJ WKH FRQFXUUHQFH VWDWHPHQWV RI
JRYHUQPHQWV VXFK VWDJHV FRXOG QRW VXEVWLWXWH IRU WKH VWURQJHU SURFHVV RI ILQGLQJ RU FUHDWLQJ ELQGLQJ OHJDO
QRUPV EHFDXVH WKHVH IRUXPV DUH ODUJHO\ DPELWLRQ DYRLGLQJ VWDWHV OHJDO GXWLHV 'HVSLWH WKH UHFRJQLWLRQ RI
LPSRUWDQFHRISURYLGLQJDFFHVVWRODQGULJKWVQRLQWHUQDWLRQDOULJKWWRODQGLVH[SOLFLWLQWKHLQWHUQDWLRQDOOHJDO
IUDPHZRUNH[FHSW&('$:ZKLFKLPSRVHVGXW\RQVWDWHVQRWWRWROHUDWHJHQGHUGLVFULPLQDWLRQ0RUHRYHUWKH
REOLJDWLRQRIVWDWHVWRZDUGVLQGLYLGXDOVDQGODQGDFFHVVKDVQRWEHHQJLYHQDGHTXDWHDWWHQWLRQ
(WKLRSLD KDV UDWLILHG WKH ELQGLQJ LQWHUQDWLRQDO KXPDQ ULJKWV WUHDWLHV LQFOXGLQJ ,&&35 ,&(6&5 &5& DQG
&('$:FRQWDLQLQJQRQGHURJDHEOHULJKWVRIZRPHQ(WKLRSLDVXEVFULEHVWRWKH8QLWHG1DWLRQV&KDUWHUDQGLV
DPHQDEOH WR FXVWRPDU\ LQWHUQDWLRQDO KXPDQ ULJKWV QRUPV DQG GHYHORSLQJ JHQHUDO LQWHUQDWLRQDO VWDQGDUGV
UHODWLQJWRODQGULJKWV
ϵϯ
/ďŝĚ͕Ɖ͘ϴϮ
ŝďŝĚ
ŝďŝĚ
ϵϲ
/ďŝĚ͕ƉϭϯϮ
ϵϳ
ŝďŝĚ
ϵϴ
(OLVDEHWK:LFNHULDQG$QLO.DOKDQ DERYHQRWHS
ϵϰ
ϵϱ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtw
/DQGULJKWVDUHDOVRLQYRNHGLQWKHLQWHUQDWLRQDOOHJDOIUDPHZRUNRQZRPHQ¶VULJKWV7KH&RQYHQWLRQRQWKH
(OLPLQDWLRQRIDOOIRUPVRI'LVFULPLQDWLRQ$JDLQVW:RPHQ &('$: UHTXLUHVWKDW6WDWH3DUWLHV³VKDOOHQVXUH
ZRPHQWKHULJKWWRHTXDOWUHDWPHQWLQODQGDQGDJUDULDQUHIRUPDVZHOODVLQODQGUHVHWWOHPHQWVFKHPHV´
&('$: DOVR SURYLGHV WKDW ERWK VSRXVHV PXVW HQMR\ ³>W@KH VDPH ULJKWV LQ UHVSHFW RI WKH RZQHUVKLS
DFTXLVLWLRQ PDQDJHPHQW DGPLQLVWUDWLRQ HQMR\PHQW DQG GLVSRVLWLRQ RI SURSHUW\´ LQ PDUULDJH :KLOH ODQG
ULJKWVDUHQRWH[SOLFLWO\GHYHORSHGPRUHIXOO\LQWKLV&RQYHQWLRQRUHOVHZKHUHLQWKHFRUHKXPDQULJKWVWUHDWLHV
KRZHYHUWKHKXPDQULJKWVIUDPHZRUNFOHDUO\GLFWDWHVWKDWKXPDQULJKWV EHDSSOLHGQRQGLVFULPLQDWRULO\DQG
HTXDOO\IRUDOOSHRSOH(WKLRSLDKDVDOVRDVVXPHGGXW\LPSRVHGRQVWDWHVE\&('$:
ʹǤͶǤʹǤ ’Ž‡‡–‹‰ƒ†‹‰Š–• 5LJKWVWRSURSHUW\DQGODQGDUHLQFOXGHGZLWKLQWKHVRFLRHFRQRPLFDQGFXOWXUDOULJKWVWRDQDGHTXDWHVWDQGDUG
RI OLYLQJ DQG KDYH WR EH UHDG DORQJVLGH WKH ULJKW WR GHYHORSPHQW 7KHVH ULJKWV KDYH QR HIIHFW XQOHVV
LPSOHPHQWHGE\VWDWHV
7KHVWDWHKDVWZRW\SHVRIREOLJDWLRQVZLWKUHVSHFWWRODQGULJKWV)LUVWWKHUHDUHQHJDWLYHREOLJDWLRQVLWKDVWR
DEVWDLQ IURP LQWHUIHULQJ LQ WKH HQMR\PHQW RI ULJKWV ZKLOH DW WKH VDPH WLPH UHFRJQL]LQJ DQG SURWHFWLQJ WKHP
6HFRQG WKHUH DUH SRVLWLYH REOLJDWLRQV WKH GXW\ WR SURYLGH DQG SURWHFW ODQG ULJKWV ZKLFK UHTXLUH VWDWH
LQWHUYHQWLRQ 6RPH FRPPHQWDWRUV WDNH WKH YLHZ WKDW VRFLRHFRQRPLF ULJKWV DUH QRW UHDOO\ µULJKWV¶ EXW PHUHO\
DVSLUDWLRQV GXH WR WKH ODFN RI HQIRUFHDEOH UHPHGLHV ZKLFK FDQ EH IRXQG LQ UHODWLRQ WR FLYLO DQG SROLWLFDO
ULJKWV +RZHYHU DV RQH DXWKRU SRLQWV RXW µD ULJKW LV MXVW DV PXFK D ULJKW LI LWV LPSOHPHQWDWLRQ UHTXLUHV
SRVLWLYH VWHSV UDWKHU WKDQ QHJDWLYH DEVWLQHQFH $QRWKHU VFKRODU KROGV WKH FRQFHSW RI SRVLWLYH GXWLHV LV
EHFRPLQJSDUWDQGSDUFHORIWKHQRUPDWLYHUHTXLUHPHQWRIFLYLODQGSROLWLFDOULJKWV2WKHUZULWHUDUJXHVWKDW
FLYLODQGSROLWLFDOULJKWVDUHFRVWIUHHZKLOHVRFLDOULJKWVQHFHVVLWDWHVSHQGLQJLVDOVRGLVSXWHG +RZHYHUDW
SUHVHQWWKHUHLVFRQYHUJHQFHEHWZHHQERWKQHJDWLYHDQGSRVLWLYHREOLJDWLRQVZLWKUHVSHFWWRYDULRXVW\SHVRI
ULJKWV$FFRUGLQJO\$UWLFOH RIWKH,&(6&5H[SODLQVWKHQDWXUHDQGVFRSHRIREOLJDWLRQV(DFK6WDWH3DUW\
WR WKH SUHVHQW &RYHQDQW XQGHUWDNHV WR WDNH VWHSV LQGLYLGXDOO\ DQG WKURXJK LQWHUQDWLRQDO DVVLVWDQFH DQG
FRRSHUDWLRQ HVSHFLDOO\ HFRQRPLF DQG WHFKQLFDO WR WKH PD[LPXP RI LWV DYDLODEOH OLPLWHG UHVRXUFHV DQG
FDSDFLW\ ZLWK D YLHZ WR DFKLHYLQJ SURJUHVVLYHO\ WKH IXOO UHDOL]DWLRQ RI WKH ULJKWV UHFRJQL]HG LQFOXGLQJ
SDUWLFXODUO\WKHDGRSWLRQRIOHJLVODWLYHPHDVXUHVZLWKEDVLFPLQLPXPWKUHVKROGVDQGREOLJDWLRQV6LPLODUO\WKH
ϵϵ
(OLVDEHWK:LFNHULDQG$QLO.DOKDQ DERYHQRWHS
6LUDM6DLWDQG+LOLDU\/LP DERYHQRWHS
ϭϬϬ
ϭϬϭ
$JDUZDO%LQD$UH:H1RW3HDVDQWV7RR"/DQG5LJKWVDQG:RPHQ¶V&ODLPVLQ,QGLD 6HHGV1R 1HZ
<RUN3RSXODWLRQ&RXQFLO
ϭϬϮ
6LUDM6DLWDQG+LOLDU\/LP DERYHQRWHS
*UD\/HVOLHDQG0LFKDHO.HYDQH³'LPLQLVKHG$FFHVV'LYHUWHG([FOXVLRQ:RPHQDQG/DQG7HQXUHLQ6XE
6DKDUDQ$IULFD´$IULFDQ6WXGLHV5HYLHZ9RO1RSS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtx
0DDVWULFKW*XLGHOLQHVRQ9LRODWLRQVRI(FRQRPLF6RFLDODQG&XOWXUDO5LJKWVSRLQWVRXWWKDWµ/LNHFLYLO
DQGSROLWLFDOULJKWVHFRQRPLFVRFLDODQGFXOWXUDOULJKWVLPSRVHWKUHHGLIIHUHQWW\SHVRIREOLJDWLRQVRQVWDWHV
WKHREOLJDWLRQVWRUHVSHFWSURWHFWDQGIXOILOO )DLOXUHWRSHUIRUPDQ\RQHRIWKHVHWKUHHREOLJDWLRQVFRQVWLWXWHVD
YLRODWLRQRIVXFKULJKWV
:LWK UHJDUG WR LPSOHPHQWDWLRQ RI SURSHUW\ ULJKWV KXPDQ ULJKWV WUHDWLHV UHOHYDQW WR ODQG ULJKWV KDYH FUHDWHG
PRQLWRULQJ FRPPLWWHHV WR VXSHUYLVH WKHLU FRPSOLDQFH E\ VWDWHV 6RPH OLNH WKH ,&&35 KDYH DQ LQGLYLGXDO
FRPSODLQWVV\VWHPZLWKUHVSHFWWRVWDWHVWKDWKDYHDJUHHGWRLWEXWWKHLQWHUQDWLRQDOVXSHUYLVLRQRIODQGULJKWV
DVSDUWRIWKHHFRQRPLFVRFLDODQGFXOWXUDOULJKWVSDUDGLJPLVEDVHGHQWLUHO\RQWKHUHSRUWLQJV\VWHP8QGHU
WKH ,&(6&5 WKH RQO\ FRPSXOVRU\ REOLJDWLRQ IRU VWDWHV LV WR VXEPLW SHULRGLF UHSRUWV LQGLFDWLQJ WKH H[WHQW RI
WKHLUFRPSOLDQFHZLWKWKHWUHDW\SURYLVLRQVWKH\KDYHVLJQHG5HSRUWLQJLVQRZDQHVWDEOLVKHGIHDWXUHRIWUHDW\
EDVHGKXPDQULJKWVLQVWUXPHQWVLWJRHVIDUEH\RQGWKHPHUHUHTXLUHPHQWIRUVWDWHVWRILOHUHSRUWVDQGSURYLGHV
WKH EDVLV RI µFRQVWUXFWLYH GLDORJXH¶ GLVFXVVLRQ EHWZHHQ VWDWHV DQG WKH PRQLWRULQJ FRPPLWWHH VHW XS E\ WKH
WUHDW\±LQWKHUHDOL]DWLRQRIWKRVHULJKWV
'HVSLWHWKHODFNRIGLUHFWHQIRUFHPHQWFDSDFLW\WKH,&(6&5&RPPLWWHHKDVGHYHORSHGDQHZUDQJHRILWVRZQ
PRQLWRULQJ SURFHGXUHV DQG SUDFWLFHV $ PRVW GLUHFW H[DPSOH RI LWV HQIRUFHPHQW LQQRYDWLRQV DUH GD\V RI
µ*HQHUDO'LVFXVVLRQV¶LQYROYLQJ1*2VDQGH[SHUWVWRGHDOZLWKWKHREIXVFDWHGDQGLPSUHFLVHQDWXUHRIPRVW
RIWKHULJKWVLWLVWRPRQLWRU 7KH&RPPLWWHHKDVFODULILHGWKHQDWXUHRI6WDWHV3DUWLHV¶REOLJDWLRQVXQGHUWKH
&RYHQDQWSRLQWLQJRXWYDULRXVREOLJDWLRQVZKLFKDUHRILPPHGLDWHHIIHFW,WKDVDOVRKLJKOLJKWHGD PLQLPXP
FRUHRIREOLJDWLRQVLQFXPEHQWRQ6WDWHV3DUWLHVDQGWKHDEVHQFHRIVDWLVIDFWLRQZKLFKZRXOGOHDGWRD SULPD
IDFLH DVVXPSWLRQ WKDW WKH VWDWH FRQFHUQHG LV IDLOLQJ WR GLVFKDUJH LWV REOLJDWLRQV XQGHU WKH &RYHQDQW 7KH
,&(6&5KDVJRQHEH\RQGORRNLQJIRUWKHH[LVWHQFHRIOHJLVODWLYHMXGLFLDODGPLQLVWUDWLYHRURWKHUPHDVXUHV
7KH(XURSHDQ&RQYHQWLRQRQ+XPDQ5LJKWVKDVUHODWLYHO\ZHOOGHYHORSHGSURSHUW\ULJKWVMXULVSUXGHQFH7KLV
UHVXOWV IURP H[LVWHQFH RI (XURSHDQ &RXUW RI +XPDQ 5LJKWV 7KLV FRXUW HQIRUFHV ODQG ULJKWV GHSHQGLQJ RQ
$UWLFOHRILWV3URWRFROVSHFLI\LQJWKHULJKWWRSURSHUW\/DQGLVDVLJQLILFDQWSURSHUW\LQPRVWSDUWVRI$IULFD
ZKHUH WKHUH LV VWLOO JUHDW GHSHQGHQFH RQ DJULFXOWXUH )RU $IULFDQ FRQWH[W $UWLFOH RI WKH $IULFDQ &KDUWHU
VSHOOVRXWDJXDUDQWHHGULJKWWRSURSHUW\ZKLFKµPD\RQO\EHHQFURDFKHGXSRQLQWKHLQWHUHVWRISXEOLFQHHGRU
LQ WKH JHQHUDO LQWHUHVW RI WKH FRPPXQLW\ DQG LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI DSSURSULDWH ODZV¶ 7KH
&KDUWHU DOVR DVVHUWV WKH ULJKW WR GLVSRVH RI ZHDOWK IUHHO\ DQG RIIHUV SURWHFWLRQ WR WKH SURSHUW\ RI WKH
GLVSRVVHVVHG $UWLFOH :KLOH WKH GLVWLQFWLYH DSSURDFK RI WKH $IULFDQ &KDUWHU WR KXPDQ ULJKWV KDV EHHQ
ϭϬϰ
6LUDM6DLWDQG+LOLDU\/LP DERYHQRWHS
ŝďŝĚ
ŝďŝĚ
ϭϬϳ
/ďŝĚ͕S
ϭϬϱ
ϭϬϲ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWty
GHEDWHGWKHELJJHVWFRQFHUQZDVDQLQDGHTXDWHPRQLWRULQJPHFKDQLVPIRULPSOHPHQWDWLRQRI&KDUWHUULJKWV
7KHLPSDFWRIWKH&KDUWHURQ$IULFDQKXPDQULJKWVUHFRUGVFRQVLGHUHGPLQLPDOXQWLOUHFHQWO\ZDVDVFULEHGWR
OLPLWHGSROLWLFDOZLOODQGUHVRXUFHVDQGDUHODWLYHO\ZHDNFRPSOLDQFHPHFKDQLVPLQWKH$IULFDQ&RPPLVVLRQ
RQ+XPDQDQG3HRSOH¶V5LJKWVFUHDWHGXQGHUWKH&KDUWHUWRVXSHUYLVH6WDWH3DUWLHV¶FRPSOLDQFH +RZHYHU
WKH&RQVWLWXWLYH$FWRIWKH$IULFDQ8QLRQ $8 UHSODFLQJWKH2UJDQL]DWLRQRI$IULFDQ8QLW\ 2$8 LQ-XO\
VSHFLILFDOO\XSJUDGHGKXPDQULJKWVWKHSURPRWLRQRIWKHUXOHRIODZDQGJRRGJRYHUQDQFHDVSULRULWLHV
7KLVKDVUHFHLYHGLPSHWXVIURPWKH$IULFDQ&RXUWRI+XPDQDQG3HRSOHV¶5LJKWVFUHDWHGE\DSURWRFROWRWKH
$IULFDQ&KDUWHUZKLFK FDPHLQWR IRUFHRQ-DQXDU\ 7KLVSDYHVWKHZD\IRU JUHDWHU HQIRUFHPHQWRI
KXPDQULJKWVDWWKHUHJLRQDOOHYHO(WKLRSLDLVDOVRPHPEHU$IULFDQFKDUWHURQSHRSOHULJKWVDQGSURWRFROWRWKH
$IULFDQ&KDUWHU
7KHUH LV JURZLQJ UHFRJQLWLRQ WKDW LQ RUGHU WR LPSURYH WKH VHFXULW\ RI ODQG ULJKWV LW LV QHFHVVDU\ WR DGGUHVV
LVVXHVEH\RQGODQGWHQXUHSHUVH)RULQVWDQFHLQVHFXULQJZRPHQ¶VODQGULJKWVDQHZODQGODZSURYLGLQJIRU
JHQGHU HTXDOLW\ ZRXOG DFKLHYH OLWWOH ZLWKRXW D UHIRUP RI GLVFULPLQDWRU\ IDPLO\ DQG VXFFHVVLRQ ODZV
SDUWLFXODUO\LQFRQWH[WVZKHUHLQKHULWDQFHLVWKHPDLQIRUPRI ODQGWUDQVIHU7KHUHIRUHWKHHQIRUFHPHQWRI
ZRPHQ¶VODQGULJKWVZLOOEHWREHVHHQLQWKHIXWXUH
ʹǤͷǤš’‡”‹‡ ‡‘ˆ–Š‡”‘—–”‹‡•ǯƒ†‡‰‹•Žƒ–‹‘ǡ‘Ž‹ ›ǡƒ†‡ˆ‘”
ʹǤͷǤͳǤ—”˜‡›‘ˆ‘—–”‹‡•ǯƒ†‡‰‹•Žƒ–‹‘š’‡”‹‡ ‡
(TXDOLW\RIULJKWVWRODQGIRUZRPHQDQGPHQDUHQRWRQO\DVRFLDODQGHFRQRPLFULJKWEXWDOVRDSROLWLFDODQG
KXPDQ ULJKW 7KH IRUPDO DQG LQIRUPDO DFNQRZOHGJPHQW HQIRUFHPHQW RI WKRVH ULJKWV LV FUXFLDO IRU FLYLOL]LQJ
JHQGHU DQG VRFLDO HTXLW\ HVSHFLDOO\ LQ UXUDO DUHDV 7KH VHW RI QRUPV DQG SUDFWLFHV WKDW GHILQHV WKH ODQG
ULJKWV RI GLIIHUHQW LQGLYLGXDOV DQG JURXSV LQ D JLYHQ VRFLHW\ DUH HLWKHU IRUPDOO\ UHFRJQL]HG LQ VWDWXWRU\ ODZV
DQGRUDUHDFNQRZOHGJHGE\PHPEHUVRIWKHFRPPXQLW\DVOHJLWLPDWH
$VGLVFXVVHGLQVHFWLRQDERYHRYHUWKH \HDUVLQWHUQDWLRQDOKXPDQULJKWODZKDVEHFRPHPRUH SHUVLVWHQW
DQG VSHFLILF DERXW ZRPHQ¶V EDVLF ULJKWV WR ODQG DQG SURSHUW\ DQG KDV DGGUHVVHG WKH LVVXH RI UHPRYLQJ
REVWDFOHVWR ZRPHQ¶VDELOLW\WRH[HUFLVHWKHVHULJKWV([DPSOHVLQFOXGHWKH8QLYHUVDO'HFODUDWLRQRI+XPDQ
5LJKWV 8'+5 DGRSWHGE\WKH8QLWHG1DWLRQVLQ'HFHPEHUDQGWKH&RQYHQWLRQRQWKH(OLPLQDWLRQRI
$OO)RUPVRI'LVFULPLQDWLRQDJDLQVW:RPHQ &('$: DGRSWHGLQ7KHVHLQWHUQDWLRQDOQRUPVKDYHKDG
DVLJQLILFDQWLPSDFWRQQDWLRQDOOHJLVODWLRQVDVZRPHQ¶V EDFNLQJJURXSVKDYHXVHGVXFKLQVWUXPHQWVWRSXVK
IRU FKDQJH LQFOXGLQJ ODQG ODZV DQG UHJXODWLRQV WKDW RSHQO\ DFNQRZOHGJH DQG JLYH ZRPHQ HTXDO SURSHUW\
LELG
/RURQ]R&KRWXODHWDO DERYHQRWHS
6XVDQD/DVWDUULD&RUQKLHO :RPHQ¶V(IIHFWLYH5LJKWVWR/DQGS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWtz
ULJKWV2YHUWKHODVWIHZGHFDGHVPDQ\QDWLRQVKDYHPDGHOHJDOUHIRUPVRIFRQVWLWXWLRQVDQGRWKHUODZVWKDW
XVH JHQGHU LPSDUWLDO ODQJXDJH RU WKDW XQHTXLYRFDOO\ DFNQRZOHGJH ZRPHQ¶V ULJKWV DQG EDQ GLVFULPLQDWLRQ
EDVHGRQJHQGHU%HVLGHVOHJLVODWLRQIRUH[DPSOH/DQG/DZVWKDWFRPSHOVHTXDOODQGULJKWVIRUZRPHQDQG
PHQDUHQRZIDLUO\FRPPRQZRUOGZLGH
/RRNLQJH[SHULHQFHRI6RXWK$PHULFDIRUH[DPSOHZRPHQ¶VOREE\JURXSVLQ/DWLQ$PHULFDVLQFHWKHV
VWUXJJOHG IRU WKH UHFRJQLWLRQ DQG SURWHFWLRQ RI HTXDO ULJKWV LQ RUGHU WR UHPRYH PDUULHG ZRPHQ IURP WKH
DXVSLFHV RI WKHLU KXVEDQGV DQG WR JLYH WKHP WKH LGHQWLFDO DQG HTXDO SURSHUW\ ULJKWV WKDW PHQ KDG $W WKH
GRPHVWLFODZOHYHOPDQ\FRXQWULHVFUHDWHGQDWLRQDOZRPHQ¶V DXWKRULWLHVPLQLVWHUVWKDWEDFNXSDQGSURPRWH
JHQGHUHTXLW\LQFOXGLQJPDLQVWUHDPLQJRIODQGULJKWVRIZRPHQ$VDUHVXOWGXULQJWKHVDQGVPRVW
/DWLQ $PHULFDQ QDWLRQV SDVVHG OHJDO UHIRUPV RI FRQVWLWXWLRQV DQG FLYLO FRGHV WR WDNH DZD\ GLVFULPLQDWRU\
VHFWLRQVLQIDPLO\ PDUULDJHGLYRUFHDQGPDULWDOSURSHUW\ /DWLQ$PHULFDQQDWLRQVKDYHDOVRUHIRUPHGODQGDOORFDWLRQODZVDQGUHJXODWLRQV IRUH[DPSOHIRUODQGUHIRUP
DQGODQGWLWOLQJ WRH[SUHVVO\DFNQRZOHGJHDQGJLYHZRPHQHTXDOSURSHUW\ULJKWV&RPSDUDEOHFDPSDLJQV
WRUHIRUPODQGODZVKDYHEHHQRFFXUULQJLQ$IULFDDQG$VLD7KHVWUXJJOHIRUJHQGHUMXVWLFHLQODQGULJKWVKDV
EHFRPHVWURQJHUIURPWKHWLPHRI%HLMLQJ'HFODUDWLRQDQG3ODWIRUPIRU$FWLRQDQGWKH0LOOHQQLXP
'HYHORSPHQW*RDOVHPSKDVL]LQJODQGDVDGHFLVLYHIDFWRUIRUZRPHQ¶VHFRQRPLFHPSRZHUPHQWDVZHOODVIRU
IRRGVHFXULW\DQGWKHZHOOEHLQJRIUXUDOKRXVHKROGV
7KH LQKHULWDQFH UXOHV DQG SUDFWLFHV DUH RIWHQ UHIHUUHG E\ ZRPHQ¶V RUJDQL]DWLRQV DV JHQGHU SUHMXGLFHG DQG
PDQ\FRXQWULHVLQFOXGLQJWKRVHLQ$IULFDDQG$VLDKDYHPRGLILHGWKHLULQKHULWDQFHODZV,Q/DWLQ$PHULFD
ZKHUHLQKHULWDQFHFRGHVKDYHEHHQWUDGLWLRQDOO\HTXDODQGELODWHUDO ERWKGDXJKWHUVDQGVRQVLQKHULWIURPERWK
SDUHQWV UXUDOZRPHQDVZHOODVPHQWHQGWRRZQODQG,Q(FXDGRUIRULQVWDQFHLWZDVIRXQGWKDWPRUHODQG
SDUFHOVZHUHRZQHGE\LQGLYLGXDOZRPHQ DVRSSRVHGWRMRLQWRZQHUVKLS WKDQE\LQGLYLGXDOPHQ,Q,QGLD
LPSURYHPHQWVWRWKH+LQGX6XFFHVVLRQ$FWKDYHDWWHPSWHGWRJLYHGDXJKWHUVLQKHULWDQFHULJKWVWRODQG 7KH
OHJLVODWLRQ UHFRJQL]HG LQKHULWDQFH ULJKWV IRU GDXJKWHUV DQG VRQV EXW WKHQ JDYH IDPLOLHV WKH RSWLRQ RI
6XVDQD/DVWDUULD&RUQKLHO S
LELG
LELG
LELG
LELG
LELG
LELG
'RVVHWDO 7KH*HQGHU$VVHWDQG:HDOWK*DSV(YLGHQFHIURP(FXDGRU*KDQDDQG.DUQDWDND,QGLD%DQJDORUH,QGLDQ
,QVWLWXWHRI0DQDJHPHQW%DQJDORUH
LELG
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWt{
ZULWLQJZLOOVWKDWGLVLQKHULWHGGDXJKWHUV ,QWKH,QGLDQJRYHUQPHQWFKDQJHGWKH+LQGX6XFFHVVLRQ$FW
WRH[SOLFLWO\SURYLGHGDXJKWHUVIXOODQGHTXDOLQKHULWDQFHULJKWV
,PSURYHPHQWRILQKHULWDQFHODZVLQFOXGHVQRWRQO\LQKHULWDQFHZLWKLQIDPLOLHVVXFKDVLQKHULWLQJIURPRQH¶V
SDUHQWVEXWDOVRLQKHULWDQFHIURPRQH¶VVSRXVHZKLFKLV JRYHUQHGE\PDULWDOSURSHUW\ODZV)RUH[DPSOHLQ
VXE6DKDUDQ$IULFDDQGPRVWRI$VLDODQGDFTXLUHGGXULQJPDUULDJHLVFRQVLGHUHGWKHSURSHUW\RIWKHSHUVRQ
ZKRDFTXLUHGLWQRWSURSHUW\RIWKHFRXSOH+RZHYHUWKHGLIILFXOW\LQFKDQJLQJPDULWDOSURSHUW\QRUPVWR
UHFRJQL]HWKHFRQWULEXWLRQRIERWKVSRXVHVLQWKHDFTXLVLWLRQRISURSHUW\LVEHFRPLQJJUDGXDOO\HDVLHUGXHWR
HIIRUWV E\ ODQG WLWOLQJ SURJUDPV WR LVVXH MRLQW WLWOHV WR VSRXVHV7KH VWDWH E\ FODLPLQJ WKDW ODQG EHORQJV WR
ERWK VSRXVHV SDUWLFXODUO\ LI WKH ODQG EHLQJ WLWOHG KDV EHHQ DOORFDWHG E\ WKH VWDWH FRQWULEXWHV WR WKH
LPSURYHPHQWRIZRPHQ¶VODQGULJKWVDQGLQFUHDVHVWKHDPRXQWRIODQGLQZRPHQ¶VKDQGV
:LWKUHJDUGWRODQGSROLFLHVDQGUHIRUPVLQJHQHUDOWHUPVFRXQWULHVDWWHPSWHGWRFKDQJHODQGWHQXUHV\VWHPV
&RXQWULHV GR WKLV E\ WDUJHWLQJ RQH RU PRUH RI WKH EDVLF FKDUDFWHULVWLFV RI ODQG WHQXUH V\VWHPV DFFHVV
GLVWULEXWLRQRUWHQXUHVHFXULW\7HQXUHSROLFLHVPD\VHHNWRFKDQJHUXOHVIRUDFFHVVWRODQG WKURXJKWHQXUH
UHIRUP E\ SULYDWL]LQJ FROOHFWLYH IDUPV IRUELGGLQJ WHQDQF\ RU SULYDWL]LQJ FXVWRPDU\ ODQG V\VWHPV )RU
H[DPSOHLQ(DVWHUQ(XURSH&HQWUDO$VLDDQG5XVVLDVLQFHWKHODWHVDQGWKHVWHQXUHUHIRUPKDV
LQYROYHGPDLQO\SULYDWL]DWLRQRIODQGVWKDWZHUHSUHYLRXVO\FROOHFWLYHVFRRSHUDWLYHVRUVWDWH IDUPV7KHVH
UHIRUPV KDYH HLWKHU UHWXUQHG ODQG WR SUHVRFLDOLVW HUD RZQHUV DV LQ /DWYLD RU KDYH SDUFHOL]HG FROOHFWLYHO\
IDUPHGODQGVWRH[FROOHFWLYHRUVWDWHIDUPZRUNHUV DVLQ0ROGRYDDQG$OEDQLD $OWKRXJKWHQXUHUHIRUPLQWKLVUHJLRQKDVWDNHQGLYHUVHIRUPVLQSDUWGXHWRWKHOHYHORIODQGFROOHFWLYL]DWLRQ
SUHYLRXVO\DFKLHYHGXQGHUFRPPXQLVWJRYHUQPHQWVZKDWKDVEHHQVLPLODUDFURVVPRVWRIWKHUHJLRQLVWKDWDV
SULYDWH SURSHUW\ EHFDPH WKH SUHGRPLQDQW IRUP RI ODQG RZQHUVKLS QHZ SURSHUW\ RZQHUV KDYH EHHQ PRVWO\
PHQ$OWKRXJKOHJLVODWLRQZDVJHQGHUHTXDOODQGDOORFDWLRQSURJUDPVDQGWKHWLWOLQJSURJUDPVWKDWIROORZ
WKHP KDYH JHQHUDOO\ JUDQWHG WKH PDOH KHDG RI KRXVHKROG RZQHUVKLS ULJKWV WR ODQG SDUFHOV ,Q DGGLWLRQ LQ
UXUDOFRPPXQLWLHVLQVSLWHRIGHFDGHVRIVRFLDOLVWJRYHUQPHQWDQGJHQGHUHTXDOODZVGHIDFWRSURSHUW\ULJKWV
LQODQGDQGLQKHULWDQFHSUDFWLFHVFRQIRUPWRSDWULOLQHDOFXVWRP
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
LELG
'RVVHWDO DERYHQRWHS
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
LELG
'RVVHWDO DERYHQRWHS
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
LELG
LELG
'RVVHWDO DERYHQRWHS
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWur
$ SRVVLEOH IDFWRU FRQWULEXWLQJ WR WKLV GHWHULRUDWLRQ WR FXVWRPDU\ QRUPV LV D UHMHFWLRQ RQ WKH SDUW RI WKH
SRSXODWLRQRIWKHSUHYLRXVVRFLDOLVWVWDWHDQGLWVSROLFLHVLQFOXGLQJSROLFLHVWKDWLPSRVHGJHQGHUHTXLW\IURP
WKHWRSGRZQ ,Q6XE6DKDUDQ$IULFDWHQXUHUHIRUPKDVRIWHQVRXJKWWRWUDQVIRUPFXVWRPDU\WHQXUHODQG
LQWR LQGLYLGXDOL]HG SULYDWH SURSHUW\'XULQJ SULYDWL]DWLRQ PHQ DQG SDUWLFXODUO\ PDOH KHDGV RI KRXVHKROG DFTXLUHFRPSOHWHDQGOHJDORZQHUVKLSRIODQG,QGLYLGXDOL]HGDQGSULYDWHRZQHUVKLSWUDQVIHUVWKHIHZULJKWV
VXFKDVFXOWLYDWLRQULJKWV WKDWZRPHQPD\KDYHWRODQGXQGHUFXVWRPDU\UXOHV WRWKRVHPHQZKRDUHDEOHWR
FODLPSULYDWHSURSHUW\ULJKWVWRODQG0RUHUHFHQWO\WKHUHLVWKHWUHQGWRIRUPDOO\UHFRJQL]HFXVWRPDU\WHQXUH
DQGODQGDXWKRULWLHV
5HGLVWULEXWLYHODQGUHIRUPKDVEHHQXWLOL]HGWRPRGLI\WLOWHGODQGGLVWULEXWLRQ SDWWHUQVLQDQDWWHPSWWRUHGXFH
JUHDW GLVSDULW\ LQ ODQG GLVWULEXWLRQ ,UUHVSHFWLYH RI WKH UHIRUPHG DOORFDWLRQ VWUXFWXUH DFURVV KRXVHKROGV
KRZHYHU ZRPHQ KROG OHVV ODQG WKDQ PHQ LQ PRVW VRFLHWLHV$V VWXG\ KDV VKRZQ UHGLVWULEXWLYH UHIRUP LQ
/DWLQ$PHULFDIURPWKHVWRVGLVWULEXWHGODQGVPRVWO\WRPDOHKRXVHKROGKHDGV5HIRUPSURJUDPV
LQWKHJUHDWPDMRULW\RIFDVHVJUDQWHGODQGWRWKHKRXVHKROGKHDGZKRLVXVXDOO\PHQXQGHUWKHDVVXPSWLRQ
WKDWDOOKRXVHKROGPHPEHUVZRXOGEHQHILW
,Q PRVW RI $VLD ODQG UHIRUP GXULQJ WKH ODVW KDOI RI WKH WZHQWLHWK FHQWXU\ KDV EHHQ FKDUDFWHUL]HG DV ERWK
UHGLVWULEXWLRQDQGFKDQJHRIWHQXUHULJKWV0RVWRIWKHPKDYHIRFXVHGRQFRQYHUWLQJWHQDQWVLQWRVPDOOKROGHU
RZQHUVVXFKDVWKH,QGLDQUHIRUPVRIWKHVDQGWKRVHRI-DSDQDIWHU:RUOG:DU,,:KLOHPRVWRIWKHVH
UHIRUPVLJQRUHGZRPHQ¶VULJKWVWRODQGLQWKHODVWIHZGHFDGHVVRPHKDYHDWWHPSWHGWRLQFOXGHZRPHQ ,Q
:HVW%HQJDOIRUH[DPSOHWKHVWDWHGHFUHHGLQWKDWODQGUHIRUPZDVWREHLVVXHGWRERWKVSRXVHVDVMRLQW
SURSHUW\ZKHUHYHUSRVVLEOH6WXG\LQIRXQGWKDWOHVVWKDQSHUFHQWRIWKHODQGSDUFHOVZHUHMRLQWO\
WLWOHGWRVSRXVHVDQGRQO\SHUFHQWZHUHWLWOHGWRZRPHQ/DQGUHIRUPVKDYHJLYHQPHQFRQWUROULJKWVRYHU
KRXVHKROGODQGSDUFHOV
ϭϯϭ
/ďŝĚ͕Ɖ͘ϰ
/DVWDUULD&RUQKLHO6XVDQD ³,PSDFWRI3ULYDWL]DWLRQRQ*HQGHUDQG3URSHUW\5LJKWVLQ$IULFD´:RUOG
'HYHORSPHQW9RO1R $XJXVW SS
ϭϯϯ
ŝďŝĚ
ŝďŝĚ
ϭϯϰ
'DYLVRQ -HDQ HG $JULFXOWXUH :RPHQ DQG /DQG 7KH $IULFDQ ([SHULHQFH %RXOGHU &RORUDGR 86$ :HVWYLHZ3UHVV
ϭϯϲ
ŝďŝĚ
ŝďŝĚ
^ƵƐĂŶĂ>ĂƐƚĂƌƌŝĂͲŽƌŶŚŝĞů͕;ϮϬϬϱͿ͕ĂďŽǀĞŶŽƚĞ͕Ɖ͘ϰ͘
ϭϯϵ
ŝďŝĚ
-DFREV6XVLH *HQGHUDQG$JUDULDQ5HIRUPV1HZ<RUN5RXWOHGJH
ϭϯϳ
ϭϯϴ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWus
:RPHQDOVRH[SHULHQFHOHVVDFFHVVWRODQGULJKWV WKDQPHQ,QPRVWRI$IULFDDQG$VLDZRPHQKROGLQGLUHFW
RUVHFRQGDU\ULJKWVWRODQGLQWKHVHQVHWKDWWKHLUDFFHVVWRODQGLVWKURXJKWKHLUIDWKHUEURWKHURUKXVEDQG
7KHVH VHFRQGDU\ ULJKWV EHFRPH HYHQ ZHDNHU GXULQJ WUDQVLWLRQ SHULRGV²VXFK DV PDUULDJH GLYRUFH RU
ZLGRZKRRG²DQG GXULQJ VRFLHWDO FKDQJH VXFK DV WKH IRUPDWLRQ RI PDUNHWV HFRQRPLHV DQG FRQIOLFW
VLWXDWLRQV7HQXUHVHFXULW\DQGZRPHQDFFHVVWRODQGULJKWDUHDVVXUHGE\ WKHSUHVHQFHHIIHFWLYHQHVVDQG
OHJLWLPDF\RIODQGLQVWLWXWLRQV)RUPDODQGFXVWRPDU\ODQGLQVWLWXWLRQVUHFRUG HLWKHULQZULWWHQRURUDOIRUP ZKRKDVZKDWULJKWVWRODQGGHWHUPLQHWKHULJKWVDQGUHVSRQVLELOLWLHVRIODQGULJKWVDQGSDUWLFLSDWH WRJHWKHU
ZLWKMXGLFLDOLQVWLWXWLRQV LQHQIRUFLQJWKHREVHUYDQFHRIWKHVHULJKWV
/DQGSROLF\FDQVWUHQJWKHQODQGLQVWLWXWLRQVDQGLQFUHDVHWHQXUHVHFXULW\7KHPRVWFRPPRQSURJUDPXWLOL]HG
VLQFH WKH V WR LQFUHDVH WKH VHFXULW\ RI SULYDWH SURSHUW\²ODQG WLWOLQJ DQG UHJLVWUDWLRQ²LQLWLDOO\ JUDQWHG
OHJDOULJKWVWRODQGRYHUZKHOPLQJO\WRPHQ$WWHPSWVWRFRUUHFWWKLVWUHQGKDYHLQFOXGHGWKHMRLQWWLWOLQJ RI
ODQGWRERWKVSRXVHV,Q/DWLQ$PHULFDWKLVKDVUHVXOWHGLQDVLJQLILFDQWLQFUHDVHLQWKHQXPEHUDQGSHUFHQWDJH
RI ZRPHQ DFTXLULQJ OHJDO WLWOH WR ODQG SDUFHOV1RQHWKHOHVV ZKHQ WKH DPRXQW RU H[WHQVLRQ RI ODQG LV
FRQVLGHUHG WKH JUHDW PDMRULW\ RI LW LV VWLOO RZQHG E\ PHQ LQGLFDWLQJ WKDW ZRPHQ DUH DFTXLULQJ OHJDO WLWOH WR
VPDOOODQGSDUFHOV$OWKRXJKODQGWLWOLQJSURJUDPVDUHDEOHWRLQFUHDVHWHQXUHVHFXULW\ WKURXJKWKHJUDQWLQJRI
OHJDO DQG UHJLVWHUHG ULJKWV WKHVH SURJUDPV WHQG WR EHQHILW WKRVH ZKR DOUHDG\ KDYH ODQG GLVUHJDUGLQJ WKH
VLJQLILFDQWSURSRUWLRQRIUXUDOKRXVHKROGVZLWKRXWDQ\ODQG
ʹǤͷǤʹǤ‘‘ƒ–‹‘ƒŽ‡•ˆ‘” ƒ‹Ž—”‡‘ˆ‡‰‹•Žƒ–‹‘•‘‘‡ǯ•‹‰Š–•–‘ƒ†‹–Š‡”
‘—–”‹‡•
:K\ KDYH OHJLVODWLRQV ODQG SROLFLHV DQG ODQG SURJUDPV IDLOHG WR SURWHFW DQG SURPRWH JHQGHUHTXDO ODQG
ULJKWV"7KHUHDUHDWOHDVWWKUHHEDVLFUHDVRQV WKHZHDNQHVVRIVWDWHODQGLQVWLWXWLRQV SDWULDUFKDOQRUPV
DQGSUDFWLFHVDQG RIILFLDOUHFRJQLWLRQRIFXVWRPDU\WHQXUHV\VWHPV
)LUVW HYHQZKHUHOHJLVODWLRQLVSURJUHVVLYHWRZDUGVZRPHQ¶VODQGULJKWVLQPDQ\FRXQWULHVWKHVWDWHDQGLWV
LQVWLWXWLRQVLQFOXGLQJWKHMXGLFLDU\KDYHDZHDNSUHVHQFHRXWVLGHPDMRUXUEDQDUHDV7KHVWDWHWKHUHIRUHGRHV
QRW KDYH WKH UHVRXUFHV RU LV XQZLOOLQJ WR FRPPLW UHVRXUFHV IRU DGYRFDWLQJ SURPRWLQJ HQIRUFLQJ DQG
LELG
LELG
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
)RUPDOODQGLQVWLWXWLRQVLQFOXGHODQGUHJLVWULHVODQGXVHLQVWLWXWHVFDGDVWUDORIILFHVDQGODQGQRWDULHV&XVWRPDU\ODQGLQVWLWXWLRQV
JHQHUDOO\FRQVLVWRIFRPPXQLW\ODQGDXWKRULWLHVRUODQGFRXQFLOVZKHWKHUVWDWHRUFXVWRPDU\7KHVHLQVWLWXWLRQVHQIRUFHODQGDFFHVV
UXOHVDQGUHJXODWLRQVDQGPDQDJHODQGFRQIOLFWV
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWH S
-DFREV6XVLH DERYHQRWH
/DVWDUULD&RUQKLHO6XVDQD ,PSDFWRI3ULYDWL]DWLRQ RQ*HQGHUDQG3URSHUW\5LJKWVLQ $IULFD´ :RUOG'HYHORSPHQW9RO
1R $XJXVW SS
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
,ELGS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWut
SURWHFWLQJ ZRPHQ¶V OHJDO ULJKWV WR ODQG DQG SURSHUW\ ,Q UXUDO FRPPXQLWLHV ZKHUH FXVWRPDU\ WHQXUH DQG
SDWULDUFKDOYDOXHVDUHVWLOOVWURQJGHIDFWRODQGULJKWVDQGLQKHULWDQFHSUDFWLFHVFRQIRUPWRSDWULOLQHDOFXVWRP
:KHQ1LFDUDJXDLQLWLDWHGDODQGWLWOLQJSURJUDPLQWKHHDUO\VWKDWZDVVXSSRVHGWRLVVXHMRLQWWLWOHVIRU
KRXVHKROGODQGWRERWKVSRXVHVPHQRIWHQFRQWLQXHGLJQRULQJWKHLUZLYHVDQGSXWWLQJWKHLUVRQVRUEURWKHUVRQ
MRLQWWLWOHV0RUHHIIHFWLYHWUDLQLQJRIWLWOLQJRIILFHUVDQGKRXVHKROGPHPEHUVZDVHYHQWXDOO\FDUULHGRXWWR
FRXQWHUDFWWKLVWUHQGLQ1LFDUDJXD
6HFRQG UHDVRQ IRU WKH IDLOXUH RI ODQG OHJLVODWLRQ DQG SURJUDPV WR LQFUHDVH ZRPHQ¶V ULJKWV WR ODQG FDQ EH
GLUHFWO\ WUDFHG WR SDWULDUFKDO QRUPV DQG DWWLWXGHV WKDW LQIOXHQFH IRUPDO OHJLVODWLRQ DQGRU KLQGHU WKH
LPSOHPHQWDWLRQRIODQGOHJLVODWLRQDQGVWDWHSURJUDPVLQDJHQGHUHTXLWDEOHPDQQHU0RVWFRPPRQUHDVRQLV
WKRXJK ODZ LV JHQGHU QHXWUDO QRUPDWLYH DQG SUDFWLFDO FRQVWUDLQWVSUHMXGLFHV ZRPHQ IDFH LQ REWDLQLQJ ODQG
ULJKWV LJQRUH WKHLU ULJKWV/DQG GLVWULEXWLRQ DQG ODQG WLWOLQJ SURJUDPV DUH D JRRG H[DPSOH RI WKLV W\SH RI
GLVFULPLQDWLRQ $OWKRXJK ODQG WLWOLQJ SURJUDPV PD\ KDYH QR JHQGHU SUHUHTXLVLWHV DQG QDWLRQDO ODZV XSKROG
JHQGHUHTXDOLW\LQWKHFXVWRPRIWLWOLQJRQO\KRXVHKROGKHDGVGLVFULPLQDWHVDJDLQVWZRPHQDQGPD\DFWXDOO\
GHSULYHWKHPRIVHFRQGDU\ULJKWVGXHWRSDWULDUFKDOQRUPV
7KLUGHYHQZKHUHOHJLVODWLRQDQGVWDWHSURJUDPVDGGUHVVZRPHQ¶VODQGULJKWVDQGDWWHPSWWRSURPRWHJHQGHU
HTXDOODQGULJKWVUHVLVWDQFHIURPSURJUDPRIILFLDOVDQGWDUJHWSRSXODWLRQVGXULQJLPSOHPHQWDWLRQPD\GLVUXSW
WKHJRRGLQWHQWLRQVRIVWDWHSURJUDPVUHVXOWLQJLQV\PEROFHUHPRQLDORIZRPHQ¶VOHJDOODQGULJKWV6XFKDQ
H[DPSOHFDQEHIRXQGLQ%ROLYLDZKHUHLQVSLWHRIYHU\SRVLWLYHDQGVSHFLILFODQJXDJHLQWKHODQGDQGWLWOLQJ
OHJLVODWLRQ UHJDUGLQJ ZRPHQ¶V DQG PHQ¶V HTXDO ODQG ULJKWV WKH LPSOHPHQWDWLRQ RI WKH ODQG WLWOLQJ SURJUDP
GXULQJWKHILUVWQLQH\HDUVUHVXOWHGLQWKHPDMRULW\RIODQGWLWOHVEHLQJLVVXHGWRPHQ,QDQXPEHURIDG
KRFUHJXODWLRQVUHJDUGLQJWKHSDUWLFLSDWLRQDQGLQFOXVLRQRIZRPHQZHUHIRUPDOO\LQFRUSRUDWHGLQWRWKHWLWOLQJ
SURFHVV VLJQLILFDQWO\ LQFUHDVLQJ WKH WLWOLQJ RI ZRPHQ ZKHWKHU LQGLYLGXDOO\ IURP SHUFHQW LQ WR SHUFHQWLQ RUMRLQWO\ IURPSHUFHQWWRSHUFHQW 7KHDPRXQWRIODQGWLWOHGWRZRPHQKRZHYHULV
TXLWHVPDOOFRPSDUHGWRPHQ¶V
6LQFHZRPHQRIWHQGRQRWKDYHGLUHFWFRQWURORYHUODQGDQGILQDQFLDOUHVRXUFHVWKH\WHQGWRORVHWKHLULQGLUHFW
RUVHFRQGDU\ULJKWVZKHQVRFLHWDOFKDQJHVRFFXUEHFDXVHWKRVHZKRKDYHWUDGLWLRQDOO\FRQWUROOHGUHVRXUFHVDUH
ϭϱϬ
ŝďŝĚ
ŝďŝĚ
ŝďŝĚ
ϭϱϯ
ŝďŝĚ
ϭϱϰ
ŝďŝĚ
ϭϱϱ
/DVWDUULD&RUQKLHO6XVDQD DERYHQRWH
ϭϱϲ
ŝďŝĚ
ϭϱϳ
ŝďŝĚ
ϭϱϴ
ŝďŝĚ
ϭϱϭ
ϭϱϮ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWuu
DEOH WR LQFUHDVH WKHLU RZQ ULJKWV RIWHQ DW WKH H[SHQVH RI WKRVH ZLWK VHFRQGDU\ ULJKWV 3DUWO\ WKLV RFFXUV
EHFDXVH RI PDUNHW IRUFHV VRFLDO DQG FXOWXUDO FKDQJH $V ODQG EHFRPHV D PDUNHWDEOH DVVHW IDPLO\ DQG
FRPPXQLW\ PHPEHUV ZKR LQ WKH SDVW ZRXOG KDYH UHVSHFWHG D ZRPDQ¶V DFFHVV ULJKWV WR ODQG PD\ YLRODWH RU
LJQRUHWKRVHULJKWVSDUWLFXODUO\LQWKHFDVHRIYXOQHUDEOHZLGRZHGDQGGLYRUFHGZRPHQ6WXG\ZLWQHVVHVWKH
PXOWLSOH FDVHV RI ZLGRZV LQ VXE6DKDUDQ $IULFD ZKRVH LQODZV VWULSSHG ZRPHQ RI WKHLU KRPH DQG ODQG
LPPHGLDWHO\DIWHUWKHLUKXVEDQG¶VIXQHUDO 3HWHUPDQ $ SURPLVLQJ H[SHULHQFH FDQ EH IRXQG LQ 5ZDQGD ZKHUH ODQG DQG LQKHULWDQFH ODZV DUH FRQVLVWHQW 7KH
LQKHULWDQFHODZZDVUHIRUPHGLQPDQGDWLQJWKDWDOOFKLOGUHQUHJDUGOHVVRIVH[LQKHULWHTXDOO\DQGWKDW
OHJDOO\PDUULHGVSRXVHVRZQSURSHUW\WRJHWKHUDVFRPPXQLW\SURSHUW\7KHQWKHUHIRUPRIODQGWHQXUHLQ
VWDWHGWKDWZRPHQDQGPHQPDUULHGRUVLQJOHKDYHHTXDOULJKWVWRODQG5ZDQGDQRZKDVWKHEHVWFRQGLWLRQV
IRU JHQGHU HTXLW\ ZLWK UHJDUG WR ODQG ULJKWV LQ VXE6DKDUDQ $IULFD)LQGLQJV RI D VWXG\ RQ D SLORW ODQG
UHJLVWUDWLRQSURMHFWUHYHDOHGWKDWGDXJKWHUVDQGVRQVDUHLQKHULWLQJODQGHTXDOO\
ʹǤ͸Ǥ ƒ –‘”• ‹†‡”‹‰‘‡̵• ‡••–‘ƒ†‹‰Š–•
7KURXJKRXW WKH ZRUOG ZRPHQ FRQVWLWXWH D ODUJH SRUWLRQ RI WKH HFRQRPLFDOO\ DFWLYH SRSXODWLRQ HQJDJHG LQ
DJULFXOWXUH EHLQJ UHVSRQVLEOH IRU EHWZHHQ DQG SHUFHQW RI IRRG SURGXFWLRQ LQ GHYHORSLQJ FRXQWULHV
:RPHQSOD\ D FUXFLDOUROHLQHQVXULQJKRXVHKROGIRRGVHFXULW\ GHVSLWHHQMR\LQJYHU\OLPLWHGULJKWVWRODQG
UDUHO\RZQRUSRVVHVVODQGULJKWVRUKDYLQJOLWWOHRUQRDFFHVVWRUHVRXUFHVVXFKDVODQG :RPHQ VDFFHVVWR
ODQG ULJKW LV OLPLWHG E\ VHYHUDO IDFWRUV 7KH IROORZLQJ DUH VRPH RI FDXVHV IRU ZRPHQ¶V OHVV DFFHVV WR ODQG
ULJKWV
D 'LVFULPLQDWLRQ
/HJDODQGODQGSROLF\GLVFULPLQDWLRQLVWKHPRVWLPSRUWDQWIDFWRUUHVWULFWLQJZRPHQ VDFFHVVWRODQG$OWKRXJK
LQ PRVW SODFHV ODZV GR QRW SURKLELW ZRPHQ IURP RZQLQJ ODQG WKH\ KDYH EHHQ PDNLQJ LW YHU\ GLIILFXOW IRU
ZRPHQWRDFTXLUHDQGLW PDLQWDLQVFRQWURORYHUODQG/HJDOGLVFULPLQDWLRQDJDLQVWZRPHQ VRZQHUVKLSDQG
LQKHULWDQFHRIODQGLVZLGHVSUHDGWKURXJKRXWWKHGHYHORSLQJZRUOG
3HWHUPDQ $PEHU ³:LGRZKRRG DQG $VVHW ,QKHULWDQFH LQ 6XE6DKDUDQ $IULFD (PSLULFDO (YLGHQFH IURP &RXQWULHV´
'HYHORSPHQW3ROLF\5HYLHZ9RO1RSS
6XVDQD/DVWDUULD&RUQKLHO DERYHQRWHS
,ELGDQG$\DOHZHWDO (QYLURQPHQWDODQG*HQGHU,PSDFWVRI/DQG7HQXUH5HJXODUL]DWLRQLQ$IULFD3LORW(YLGHQFHIURP
5ZDQGD :RUNLQJ3DSHU1R +HOVLQNL818:,'(5
ϭϲϮ
5HNKD0HKUD DERYHQRWHS
ϭϲϯ
ŝďŝĚ
ϭϲϰ
ŝďŝĚ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWuv
:RPHQ DQG PHQ¶V GH MXUH DFFHVV WR ODQG LV UHJXODWHG E\ WKH IRUPDO OHJDO V\VWHP DQG LQ PDQ\ GHYHORSLQJ
FRXQWULHV VLPLODUO\ WKURXJK FXVWRPDU\ ODZ7KHUH DUH PDQ\ H[DPSOHV RI KRZ WKH WZR V\VWHPV FDQ ERWK
SUHYHQWDQGSURPRWHZRPHQ¶VDFFHVVWRODQG7KHIRUPDOOHJDOV\VWHPVLQPDQ\FRXQWULHVKDYHFRQVWLWXWLRQV
RUODQGODZVWKDWJUDQW JHQGHUHTXDOLW\LQDFFHVV WRODQGEXWZKHUH FXVWRPDU\V\VWHPVRUODZVIRUPDUULDJH
GLYRUFHDQGLQKHULWDQFHFRQWUDGLFWWKHVHODZVE\GLVFULPLQDWLQJDJDLQVWZRPHQDQGGDXJKWHUV
E 6FDUFLW\RI$UDEOHDQG&RPPRQ/DQG
$QRWKHULPSRUWDQWIDFWRUDIIHFWLQJODQGDYDLODELOLW\LVWKHJURZLQJVFDUFLW\RIDUDEOHDQGFRPPRQODQG7KLV
UHGXFHV ZRPHQ V DFFHVV LQ WZR ZD\V )LUVW LW OLPLWV ZRPHQ V DFFHVV WR FRPPRQ SURSHUW\ UHVRXUFHVD
VLJQLILFDQW UHVWULFWLRQ IRU SRRU ZRPHQ ZKR GHSHQG IRU WKHLU VXUYLYDO RQ WKH H[SORUDWLRQ RI IRRG KXQW DQG
ILUHZRRGWKDWZHUHFXVWRPDULO\DYDLODEOHWRWKHPRQFRPPRQODQGVLQPDQ\FRXQWULHV6HFRQGZKLOHODQG
VFDUFLW\ OLPLWV DFFHVV RI ERWK PHQ DQG ZRPHQ WR LQGLYLGXDO RZQHUVKLSSRVVHVVLRQ EHFDXVH ZRPHQ DUH
GLVSURSRUWLRQDWHO\ SRRU WKH\ DUH DW D SDUWLFXODU GLVDGYDQWDJH LQ DFTXLULQJ ODQG DV FRPSHWLWLRQ IRU LW
LQWHQVLILHV
F (FRQRPLFDO6RFLDODQG&XOWXUDO)DFWRUV
7KHWKLUGJURXQGLV HYHQZKHUHODQGLVDYDLODEOHDQGODZVDUHIDYRUDEOHZRPHQPD\EHXQDEOHWRDFTXLUHODQG
EHFDXVH WKH\ DUH WRR SRRU :RPHQ DFFHVV WR ODQG ULJKWV PD\ DOVR EH FRQVWUDLQHG E\ VRFLDO DQG FXOWXUDO
IDFWRUV WKDW GHWHU WKHP IURP FODLPLQJ HYHQ OLPLWHG ULJKW $PRQJ VRFLDO IDFWRU D NH\ FRQVWUDLQW OLPLWLQJ
ZRPHQ VDFFHVVIRUODQGULJKWLVFXVWRP,Q,QGLDIRUH[DPSOHZRPHQDUHLQIOXHQFHGE\FXVWRPWRDFFHSWWKH
LGHDWKDWVLVWHUVVKRXOGQRWWDNHDZD\SURSHUW\RIEURWKHUV$OWKRXJKZRPHQDUHSHUPLWWHGWRRZQSURSHUW\
LQ=LPEDEZH%XUNLQD)DVRDQG&DPHURRQFXVWRPVDQGWUDGLWLRQFRQWLQXHWRVDYHODQGRZQHUVKLSSRVVHVVLRQ
LQWKHVHFRXQWULHVIRUPHQ,Q:DGL.XWXP6XGDQZKHUHDWLWOLQJVFKHPHUHJLVWHUHGPRVWRIWKHODQGRZQHG
E\ZRPHQLQPHQ VQDPHVWKHZRPHQGLGQRWREMHFWEHFDXVHFXVWRPDULO\WKH\ZHUHQRWSHUPLWWHGWRFRQGXFW
UHODWLRQVZLWKWKHVWDWHWRFKDQJHORQJVWD\HGDPDOHGRPLQDQFH%HFDXVHRIWKHLUJHQGHUEDVHGVRFLDOL]DWLRQ
ZRPHQWKHPVHOYHVRIWHQUHVLVWFKDQJH$VWXG\LQ,QGLDIRXQGWKDWWZRRXWRIWKUHHZRPHQZHUHDJDLQVWJLUOV
UHFHLYLQJDVKDUHHTXDOWRER\VLQSDUHQWDOSURSHUW\ &XVWRPVVXFKDVH[RJDP\ PDUULDJHRXWVLGHDVSHFLILF
JURXS DQGSDWULORFDOUHVLGHQFH OLYLQJZLWKRUQHDUDKXVEDQG VUHODWLYHV WKDWUHTXLUHDPDUULHGZRPDQWRJLYH
ϭϲϱ
6,'$ ,QFUHDVH:RPHQ$FFHVVWR/DQG5LJKWVS
ŝďŝĚ
5HNKD0HKUD DERYHQRWHS
ϭϲϴ
/ďŝĚ͕Ɖ͘Ϯϲ
ϭϲϵ
/ďŝĚ͕Ɖ͘ϯϱ͘
ϭϳϬ
6,'$ ,QFUHDVH:RPHQ$FFHVVWR/DQG5LJKWVS
ϭϳϭ
ŝďŝĚ
ϭϳϮ
5HNKD0HKUD DERYHQRWHS
ϭϳϯ
ŝďŝĚ
ϭϲϲ
ϭϲϳ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWuw
XSKHUQDWXUDO UHVLGHQFHSRVHLPSRUWDQWFRQVWUDLQWVRQZRPHQ V DELOLW\WR FODLPODQGULJKWV 3DUWLFXODUO\LI
KHU PDULWDO UHVLGHQFH LV IDU IURP KHU ELUWK UHVLGHQFH D ZRPDQ PLJKW ILQG LW GLIILFXOW WR PDQDJH SURSHUW\
LQKHULWHGIURPQDWXUDOIDPLO\8QGHUVXFKFLUFXPVWDQFHVLWLVPRUHFRQYHQLHQWIRUZRPHQWRIRUHJRODQG
ULJKWV
G )DLOXUHRI,PSOHPHQWDWLRQRI/DQG/DZV
/DZVDORQHDUHQRWHQRXJKWRVHFXUHZRPHQ¶VDFFHVVWRODQG7KHHIIHFWLYHQHVVRIODZVGHSHQGVRQ ZRPHQ¶V
DZDUHQHVVDERXWWKHPWKHDELOLWLHVWRLQYRNHODQGULJKWVDQGWRZKDWH[WHQWFXOWXUDOQRUPVDQGWUDGLWLRQVDUH
SUDFWLFHGDQGIROORZHGLQVWHDGRIIRUPDOODZV7KXVODFNRIDZDUHQHVVDERXWFRQVWLWXWLRQDOO\JUDQWHGODQG
ULJKWV PHDQV RI HQIRUFHPHQW RI WKHVH ULJKWV FDSDFLW\ WR DIIRUG FRVW RI ODQG ULJKWV OLWLJDWLRQ DQG FXVWRPDU\
SUDFWLFHPD\VHYHUHZRPHQ¶VDFFHVVWRODQGULJKWV
H &DSDFLW\DQG,QWHJULW\RI/DZ(QIRUFHPHQW2UJDQV
:KHQ D GLVSXWH DULVHV HQIRUFHPHQW UHTXLUHV WKDW WKH GLVSXWLQJ SDUWLHV DUH IDPLOLDU ZLWK WKH ODZ ,W DOVR
FRQVLGHUVWKHSDUWLHVWRKDYHHTXDODFFHVVWRLQVWLWXWLRQVDQGDFWRUVVXFKDVODZ\HUVOHJDODLGVHWFDVZHOODV
WKHDELOLW\WRPDNHDFODLP$JRRGOHYHORIHQIRUFHPHQWLVIXUWKHUMHRSDUGL]HGE\ZHDNQHVVLQWKHLQVWLWXWLRQDO
FDSDFLW\ RI WKH MXGLFLDO V\VWHP WR LPSOHPHQW ODZV RU KDQGOH DOO LQFRPLQJ FDVHV VSHHG\ GLVSRVLWLRQ RI ODQG
GLVSXWHV FRUUXSWLRQ ELDVHG FRXUWV DQG OHJDO RIILFHUV ZKR DGKHUH WR GLVFULPLQDWLQJ QRUPV DQG FRQIOLFW
VLWXDWLRQVLQZKLFKWKHOHJDOV\VWHPDQGODZHQIRUFHPHQWWHQGWREHUXQE\WKHDUP\RUUHEHOJURXSV
I /DQG$GPLQLVWUDWLRQ
7KHWHFKQLFDOV\VWHPVRIODQGDGPLQLVWUDWLRQGHDOLQJZLWKODQGGHOLPLWDWLRQWLWOLQJDQGUHJLVWUDWLRQRIODQGRU
XVHUULJKWVSOD\DQLPSRUWDQWSDUWLQFUHDWLQJHTXDODFFHVVWRODQGLQGLIIHUHQWV\VWHPVRIODQGWHQXUH /DQG
DGPLQLVWUDWLRQ SURYLGHV RSSRUWXQLWLHV IRU HQVXULQJ LPSOHPHQWDWLRQ RI ODZV DQG SROLFLHV RQ HTXDOLW\ RU WKDW
LQIRUPDO DJUHHPHQWV RQ DFFHVV WR ODQG DUH IRUPDOL]HG DQG WKHUHE\ LPSURYHV WHQXUH VHFXULW\ ,Q V\VWHPV RI
SULYDWHWHQXUHWHQDQF\ULJKWVODQGWLWOLQJDQGUHJLVWUDWLRQLVDSUHUHTXLVLWHIRUODQGRZQHUVWRXVHWKHLUODQGDV
FROODWHUDO3URFHVVHVRIODQGGHOLPLWDWLRQWLWOLQJDQGUHJLVWUDWLRQRIWHQXUHKDYHWREHFDUULHGRXWLQDQRSHQ
PDQQHUZKLFKGRHVQRWGLVFULPLQDWHDJDLQVWZRPHQLQDQ\ZD\DQGZKLFKHQFRXUDJHVDQLQFUHDVHLQZRPHQ¶V
DFFHVVWRODQGULJKWV
J 2WKHU)DFWRUV
ϭϳϰ
ŝďŝĚ
ŝďŝĚ
6,'$ ,QFUHDVH:RPHQ$FFHVVWR/DQG5LJKWVS
ϭϳϳ
/ďŝĚ͕Ɖ͘ϰ͘
ϭϳϴ
5HNKD0HKUD DERYHQRWHS
ϭϳϵ
ŝďŝĚ
ϭϴϬ
6,'$ ,QFUHDVH:RPHQ$FFHVVWR/DQG5LJKWVS
ϭϳϱ
ϭϳϲ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWux
2WKHUIDFWRUVHQFRPSDVVDFFHVVWRGLVSXWHVHWWOHPHQWLQVWLWXWLRQVDQGWRWKHODQGUHJLVWUDWLRQSURFHVVERWKLQ
ODZDQGLQSUDFWLFH)DFWRUVW\SLFDOO\DIIHFWLQJDFFHVVWRVXFKLQVWLWXWLRQVLQFOXGHWKHJHRJUDSKLFDOGLVWDQFH
WR ODQG LQVWLWXWLRQV IHHV DQG RWKHU FRVWV XVH RI WKH ORFDO ODQJXDJH WKH WLPH WDNHQ DQG FRPSOH[LW\ RI WKH
SURFHVV WKH OHYHO RI FRUUXSWLRQ DQG VRFLRFXOWXUDO FDXVHV $V IRU WKH UHJLVWUDWLRQ SURFHVV WKHUH PD\ EH D
WUDGHRIIEHWZHHQDFFHVVLELOLW\ ZKLFKPD\UHTXLUHIRULQVWDQFHORFDWLQJODQGLQVWLWXWLRQVDWWKHORZHVWSRVVLEOH
DGPLQLVWUDWLYHOHYHODQGXVLQJVLPSOHWHFKQRORJ\WKDWFDQEHRSHUDWHGDWVXFKDORFDOOHYHO DQGWKHH[WHQWWR
ZKLFKWKHUHJLVWUDWLRQV\VWHPFDQSURYLGHSUHFLVHDQGXSWRGDWHLQIRUPDWLRQRQODQGULJKWV ZKLFKGHSHQGVRQ
WKH WHFKQRORJ\ DGRSWHG RQ WKH TXDOLW\ RI ODQG VXUYH\LQJ HWF $FFHVV IRU WKH SRRU WR FRXUWV DQG RWKHU
GLVSXWHVHWWOHPHQWLQVWLWXWLRQVLVHVVHQWLDOIRUVHFXULQJWKHLUODQGULJKWVERWKZLWKLQFRPPXQLWLHVDQGEHWZHHQ
ORFDOFRPPXQLWLHVDQGRXWVLGHUV
:LWKLQFRPPXQLWLHVDFFHVVWRMXVWLFHDQGUHVROXWLRQRIFRQIOLFWVRYHU ODQG ULJKWV PD\ KHOS VHFXUH ZRPHQ¶V
ODQGULJKWV±DVHYLGHQFHGE\VHYHUDOFDVHVDFURVV$IULFDZKHUHFRXUWVKDYHGHFODUHGGLVFULPLQDWRU\FXVWRPDU\
QRUPV XQFRQVWLWXWLRQDO HJ (SKUDKLP Y 3DVWRU\ DQG .DL]LOHJH LQ 7DQ]DQLD %KH Y 0DJLVWUDWH
.KD\HOLWVKD DQG RWKHUV LQ 6RXWK $IULFD 'LVSXWH VHWWOHPHQW LQVWLWXWLRQV VWDWXWRU\ FXVWRPDU\ RU
FRPELQDWLRQV RI WKHVH FRH[LVW RYHU WKH VDPH WHUULWRU\ ZLWKRXW FOHDU FRRUGLQDWLRQ PHFKDQLVPV ,Q WKHVH
FDVHVSDUWLHVWRODQGGLVSXWHVWHQGWRFKRRVHWKRVHLQVWLWXWLRQDOFKDQQHOVZKLFKWKH\GHHPPRUHIDYRXUDEOHWR
WKHLU FDXVH IRUXP VKRSSLQJ DQG GLVSXWHV DUH QHYHU UHVROYHG LQ D FOHDU DQG ILQDO ZD\ ± ZKLFK IRVWHUV
FRQIXVLRQ DQG WHQXUH LQVHFXULW\ &RPSUHKHQVLYH DQG DFFHVVLEOH ODQG GLVSXWH V\VWHPV DUH UHTXLUHG ZKLFK
GHILQH FOHDUO\ WKH UROHV RI WKH IRUPDO FRXUWV DQG DOWHUQDWLYH GLVSXWH UHVROXWLRQ V\VWHPV LQFOXGLQJ FXVWRPDU\
PHFKDQLVPVDQGHVWDEOLVKDSSURSULDWHOLQNDJHVEHWZHHQWKHGLIIHUHQWV\VWHPV
ʹǤ͹ǤŠ‡‡ Šƒ‹•‘ˆ “—‹•‹–‹‘ƒ†‘•‡‘ˆƒ†‹‰Š–•„›‘‡
7KHFLWL]HQVDFTXLUHODQGULJKWVLQGLIIHUHQWZD\V³7KHIROORZLQJDUHDPRQJWKHEDVLFZD\VIRUDFTXLVLWLRQRI
ODQG JUDQWVRIULJKWVE\WKH6WDWHWKURXJKGLVWULEXWLRQWRLQGLYLGXDOVRUJURXSVRU LQGLYLGXDOL]DWLRQRI
FXVWRPDU\FRPPXQDOWHQXUH IDPLO\ODQGDOORFDWLRQ OLNHGRQDWLRQVXFFHVVLRQ DQGIDPLO\ODQGULJKWV
WUDQVIHU V\VWHPV FRQWULEXWHG /LNHZLVH ZRPHQ JHW ODQG ULJKWV WKURXJK WKHVH PHDQV ,Q DGGLWLRQ ZRPHQ
ϭϴϭ
5HNKD0HKUD DERYHQRWHS
/RURQ]R&KRWXODHWDO DERYHQRWHS
ŝďŝĚ
ϭϴϰ
/ďŝĚ͕Ɖ͘Ϯϯ͘
ϭϴϱ
/ďŝĚĂŶĚ5HNKD0HKUD DERYHQRWHS
ϭϴϲ
/RURQ]R&KRWXODHWDO DERYHQRWHS
ϭϴϳ
ŝďŝĚ
ϭϴϴ
/ďŝĚ͕Ɖ͘Ϯϯ͘
ϭϴϵ
-RKQ:%UXFHHWDO /DQG/DZ5HIRUP$FKLHYLQJ'HYHORSPHQW3ROLF\2EMHFWLYHV:RUOG%DQN:DVKLQJWRQ'&S
ϭϴϮ
ϭϴϯ
ϭϵϬ
-RKQ:%UXFHHWDO DERYHQRWHS
-RKQ:%UXFHHWDO DERYHQRWHS
ϭϵϭ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWuy
DFTXLUH ODQG ULJKWV WKURXJK PDUULDJH +RZHYHU LQ WKH SURFHVV RI SULYDWL]DWLRQ DQG UHGXFLQJ WKH FRPSOH[
EXQGOHVRIULJKWVLQWRDVLQJOHXQLWDU\ULJKWPDQ\ZRPHQDQGPDUJLQDOXVHUVORVHRXW:RPHQFDQORVHRXW
ODQGULJKWVLQVHYHUDOZD\V WKH\PD\ORVHXVHULJKWVRUULJKWVRIRFFXSDWLRQWRWKHQHZSRVVHVVRURU WKH\PD\UHFHLYHWLWOHEXWPD\QRWKDYHWKHUHVRXUFHVWRSURGXFHDQGWKHUHIRUHORVHWKHLUSRVVHVVLRQKROGLQJ
ULJKWVRYHUWLPH GLYRUFHRIPDUULDJH
ϭϵϮ
-RKQ:%UXFHHWDO DERYHQRWHS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWuz
͵Ǥǯ
͵ǤͳǤ –”‘†— –‹‘
0DQ\ FRXQWULHV KDYH DGRSWHG QDWLRQDO SODQV RI DFWLRQ DQG HVWDEOLVKHG LQVWLWXWLRQDO PDFKLQHU\ WR SURPRWH
ZRPHQ¶VHPSRZHUPHQW2QHRIWKRVHLQVWLWXWLRQVLVWKHFRQWHPSRUDU\FRQVWLWXWLRQVDQGLQWHUQDWLRQDOKXPDQ
ULJKW LQVWUXPHQWV WKDW SURKLELW JHQGHU GLVFULPLQDWLRQ SURWHFWLQJ ZRPHQ¶V ULJKWV /HJLVODWLYH UHIRUPV KDYH
EURXJKWDERXWFKDQJHVLQIDPLO\DQGVXFFHVVLRQODZWRZDUGHTXDOLW\EHWZHHQVSRXVHVDQGIXOOOHJDOFDSDFLW\RI
PDUULHGZRPHQDVZHOODVWRZDUGJUHDWHUJHQGHUHTXDOLW\LQODQGULJKWVLQFOXGLQJLQKHULWDQFHULJKWV0RUHRYHU
ZRPHQ¶V OHJDO VWDWXV KDV EHHQ LPSURYHG E\ MXGLFLDO GHFLVLRQV GHFODULQJ GLVFULPLQDWRU\ QRUPV WR EH
XQFRQVWLWXWLRQDODQGXQODZIXO
,Q (WKLRSLDQ FRQWH[W $UW RI )'5( FRQVWLWXWLRQ JLYHV HTXDO ULJKWV WR VSRXVHV GXULQJ WKH FRQFOXVLRQ
GXUDWLRQDQGGLVVROXWLRQRIPDUULDJHDQGUHTXLUHGHTXDOGLYLVLRQRIDOODVVHWVEHWZHHQWKHKXVEDQGDQGZLIH
XSRQ GLYRUFH DOWKRXJK SUDFWLFH RI WKH IDPLO\ ODZ KDV QRW EHHQ XQLIRUP DFURVV DOO WKH UHJLRQV RI (WKLRSLDQ
)HGHUDWLRQ 7KH (WKLRSLDQ ODQG WLWOLQJ DQG UHJLVWUDWLRQ SURJUDP SURYLGHV HYLGHQFH WKDW LQGLFDWHV ODQG WLWOLQJ
GRHVQRWQHFHVVDULO\KDYHWRZRUNDJDLQVWZRPHQ,Q(WKLRSLD¶VORZFRVWFRPPXQLW\EDVHGODQGFHUWLILFDWLRQ
VFKHPH ODQG DGPLQLVWUDWLRQ FRPPLWWHHV DW WKH NHEHOH OHYHO ZHUH UHTXLUHG WR KDYH DW OHDVW RQH IHPDOH
PHPEHU%RWKWKHODQGWLWOLQJH[HUFLVHDQGWKHLVVXDQFHRIFHUWLILFDWLRQVZHUHFRQGXFWHGSXEOLFO\LQYLOODJH
DVVHPEOLHVIRUWUDQVSDUHQF\,QUHJLRQVZKHUHDSKRWRLQDGGLWLRQWRDQDPHZDVUHTXLUHGIRUFHUWLILFDWLRQ
ZRPHQZHUHFRQVLGHUDEO\PRUHOLNHO\WRKDYHWKHLUQDPHVRQDGHHG%XWLQSUDFWLFHVWXGLHVLQGLFDWHWKDW
SHDVDQWXQLRQVYLOODJHDXWKRULWLHVDQGPDOHKRXVHKROGKHDGVDVZHOODVODQGUHIRUPDXWKRULWLHVKDYHZRUNHG
DJDLQVWRUVLPSO\LJQRUHGWKLVHJDOLWDULDQODZ
7KH)'5(JRYHUQPHQWGHFHQWUDOL]HGVRPHRIWKHODQGSROLF\UHVSRQVLELOLWLHVWRWKHUHJLRQDOOHYHODQGUHJLRQDO
ODQG SURFODPDWLRQV KDYH GHYHORSHG IROORZLQJ EXW QRW XQGHUPLQLQJ WKH IHGHUDO ODQG SURFODPDWLRQ 7KLV
UHVXOWHG LQ VRPH GLYHUVLW\ DFURVV UHJLRQV LQ WKH SURFODPDWLRQV LPSOHPHQWDWLRQ UXOHV DQG WLPLQJ RI ODQG
UHJLVWUDWLRQDQGFHUWLILFDWLRQSURFHVVHV
&RWXOD ZRPHQDFFHVVWR/DQG5LJKWVS
ŝďŝĚ
'HLQLQJHUHWDO 6XVDQD/DVWDUULDFRUQKLHO S
6XVDQD/DVWDUULDFRUQKLHO S
ϭϵϰ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWu{
͵ǤʹǤ‘‡ ‡••–‘ƒ†‹‰Š–•—†‡” ‡‰‹•Žƒ–‹‘•
$)'5(&RQVWLWXWLRQ
7KH)'5(FRQVWLWXWLRQSURYLGHVWKDWZRPHQVKDOOLQWKHHQMR\PHQWRIULJKWVDQGSURWHFWLRQVSURYLGHGIRUE\
WKLV&RQVWLWXWLRQKDYHHTXDOULJKWZLWKPHQ´,WDOVRDGGVWKDWZRPHQKDYHWKHULJKWWRDFTXLUHDGPLQLVWHU
FRQWUROXVHDQGWUDQVIHUSURSHUW\´,QSDUWLFXODUWKLVODZSURYLGHVZRPHQKDYHHTXDOULJKWVZLWKPHQZLWK
UHVSHFW WR XVH WUDQVIHU DGPLQLVWUDWLRQ DQG FRQWURO RI ODQG DV ZHOO DV ULJKW WR HQMR\ HTXDO WUHDWPHQW LQ WKH
LQKHULWDQFHRISURSHUW\LQFOXGLQJODQGULJKWV)'5(FRQVWLWXWLRQFOHDUO\UHFRJQL]HVHTXDOULJKWVRIPHQDQG
ZRPHQUHJDUGLQJZRPHQDFFHVVWRODQGULJKWV+RZHYHUOLNHRWKHUQDWLRQVFRQVWLWXWLRQV)'5(FRQVWLWXWLRQLV
QRWH[SHFWHGWRUHJXODWHGHWDLOVXEMHFWVUHJDUGLQJZRPHQDFFHVVWRODQGULJKWVEHFDXVHVXFKVSHFLILFFRQFHUQV
VKRXOGEHJRYHUQHGE\RWKHUVXEVLGLDU\ODZVOLNHSURFODPDWLRQUHJXODWLRQVGHFUHHVDQGVWDWHODZV
%:RPHQ$FFHVVWR/DQG5LJKWVXQGHU)'5(5HYLVHG)DPLO\&RGH5)&
)DPLO\ODZUHJXODWHVIDPLO\SURSHUW\ULJKWVLQFOXGLQJODQGULJKWV)'5(5HYLVHG)DPLO\&RGH5)&XQGHULWV
$UWDIIRUGVWKHSURSHUW\ZKLFKWKHVSRXVHVSRVVHVVRQWKHGD\RIWKHLUPDUULDJHRUZKLFKWKH\DFTXLUHDIWHU
WKHLU PDUULDJH E\ VXFFHVVLRQ RU GRQDWLRQ VKDOO UHPDLQ WKHLU SHUVRQDO SURSHUW\ $Q\ SURSHUW\ LQFOXGLQJ ODQG
DFTXLUHGE\VSRXVHVEHIRUHPDUULDJHRURQWKHGD\RIPDUULDJHLVSURWHFWHGDVSHUVRQDOSURSHUW\VLQFHWKHODZ
GRHVQRWGLVWLQJXLVKZKHWKHURUQRWODQGULJKWVDUHUHJXODWHGE\IDPLO\ODZ7KDWPHDQVWKHPHQFDQUHJLVWHU
ODQGULJKWVLQWKHLUQDPHDQGFODLPWKDWKHLVPHUHVROHSRVVHVVRURIODQGULJKWV1HYHUWKHOHVV$UW RI
5)&SURYLGHVDOOSURSHUW\VKDOOEHGHHPHGWREHFRPPRQSURSHUW\HYHQLIUHJLVWHUHGLQWKHQDPHRIRQHRIWKH
VSRXVHV XQOHVV VXFK VSRXVH SURYHV WKDW KH LV WKH VROH RZQHU WKHUHRI $OWKRXJK $UW RI 5)& SUHVXPHV
FRPPXQDOLW\ RI SURSHUW\ LQFOXGLQJ ODQG ULJKWV RI VSRXVHV WKH VHFRQG FODXVH RI WKH VDPH LPSOLHV WKDW WKH
SUHVXPSWLRQ LV UHIXWDEOH 7KDW LV RWKHU VSRXVH LQ ZKRVH QDPH ODQG ULJKW LV UHJLVWHUHG PD\ UHEXW WKH
SUHVXPSWLRQE\VKRZLQJKHLVVROHSRVVHVVRURIULJKW,WGRHVQRWKRZHYHUSURYLGHKRZORQJVKRXOGVSRXVHV
VWD\WRJHWKHUWRFODLPFRPPXQDOLW\RIODQGULJKWV,QRWKHUZRUGVKXVEDQGVPHQZKRFXOWXUDOO\FRQWUROODQG
ULJKWVFDQUHEXWOHJDOSUHVXPSWLRQRIFRPPXQDOLW\RIODQGULJKWV7KLVPD\DGYHUVHO\DIIHFWZRPHQDFFHVVWR
ODQGULJKWV
$UWLFOH RIWKH)'5(FRQVWLWXWLRQ
$UWLFOH RIWKH)'5(FRQVWLWXWLRQ
,ELG$UWLFOH ϭϵϵ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvr
&:RPHQ$FFHVVWR/DQG5LJKWVXQGHU)'5(/DQG3URFODPDWLRQ
,Q(WKLRSLDQ )HGHUDWLRQ WKHUHDUHWZROHYHOVRI JRYHUQPHQW%RWKOHYHOV RIJRYHUQPHQWKDYHWKHLURZQODQG
ODZWKDWHPDQDWHVIURPWKHLUFRQVWLWXWLRQDOO\JUDQWHGSRZHURIPDNLQJODQGODZ$FFRUGLQJO\)'5(KRXVHRI
SHRSOH UHSUHVHQWDWLYHV+35 HQDFWHG IHGHUDO ODQG XVH ODZV 7KH FXUUHQW RSHUDWLYH )'5( ODQG ODZ LV IHGHUDO
/DQG$GPLQLVWUDWLRQDQG/DQG8VH3URFODPDWLRQ1RZKLFKFRQWDLQVDQXPEHURIFKDQJHVFRPSDUHG
WRHDUOLHUWKHIHGHUDOODQGXVH3URFODPDWLRQ1R $PRQJWKHFKDQJHVEURXJKWE\QHZODZ$UWLFOHRI
IHGHUDO /DQG $GPLQLVWUDWLRQ DQG /DQG 8VH 3URFODPDWLRQ 1R WKDW JLYHV WKH EDVLV IRU WKH ODQG
DGPLQLVWUDWLRQV\VWHP,WVD\VDQ\KROGHU LQFOXGLQJZRPDQ RIUXUDOODQGVKDOOEHJLYHQDKROGLQJFHUWLILFDWH
LQGLFDWLQJWKHVL]HODQGXVHW\SHDQGFRYHUOHYHORIIHUWLOLW\DQGERUGHUVDVZHOODVREOLJDWLRQVDQGULJKWVRI
WKHKROGHU ,WDOVRSURYLGHVWKDWZRPHQZKRZDQWWRHQJDJHLQDJULFXOWXUHVKDOOKDYHWKHULJKWWRJHWDQGXVH
UXUDOODQG7KHDXWKRUVRIWKLVZRUNEHOLHYHLPSRVLQJHQJDJHPHQWRIZRPHQLQDJULFXOWXUHDVWKHFRQGLWLRQ
WR JHW ODQG ULJKWV LV XQIDLUQHVV RI )'5( ODQG OHJLVODWLRQ )'5( /DQG 3URFODPDWLRQ 1R DGGV WKDW
ZKHUHODQGLVMRLQWO\KHOGE\KXVEDQGDQGZLIHRUE\RWKHUSHUVRQVWKHKROGLQJFHUWLILFDWHVKDOOEHSUHSDUHGLQ
WKHQDPHRIDOOWKHMRLQWKROGHUV
7KHSURFODPDWLRQDOVRSXWVVRPHPHFKDQLVPVWKURXJKZKLFKWKH ULJKWVRIZRPHQRQODQGZLOOEHSURWHFWHG
GXULQJWUDQVIHURIODQGXVHULJKWV7RWKLVHQGLWSURYLGHVWKDWDQ\UXUDOODQGOHDVHDJUHHPHQWWREHFRQFOXGHGLQ
DFFRUGDQFHZLWKWKLVSURFODPDWLRQVKDOOVHFXUHWKHFRQVHQWRIDOOWKHPHPEHUVZKRKDYHWKHULJKWWRXVHWKH
ODQGDQGEHDSSURYHGDQGUHJLVWHUHGE\WKHFRPSHWHQWDXWKRULW\ 7KLVSURWHFWVWKHLQWHUHVWRIWKHIDPLO\LQ
JHQHUDODQGZRPHQ¶VLQWHUHVWRQODQGLQSDUWLFXODUIURPEHLQJWUDQVIHUUHGE\DEXVLYHKXVEDQGV+RZHYHUWKH
SUREOHPLVSUDFWLFDOO\KXVEDQGVEURWKHUVWUDQVIHUODQGULJKWVZLWKRXWFRQVHQWRIZLYHVVLVWHUVIRUZRPHQKDYH
OHVVDZDUHQHVVDERXWWKHLUODQGULJKWVDQGSDWULDUFKDOVRFLHW\
͵Ǥ͵Ǥ‘‡ ‡••–‘ƒ†‹‰Š–•—†‡”ƒ†ƒ™
$:RPHQ$FFHVVWR/DQG5LJKWVXQGHU6113565HJLRQDO5XUDO/DQG3URFODPDWLRQ
7KHSUHDPEOHRI6113565XUDO/DQG$GPLQLVWUDWLRQDQG8WLOL]DWLRQ3URFODPDWLRQSURYLGHVRQHRI
UDWLRQDOH IRU HQDFWLQJ UHJLRQDO ODQG OHJLVODWLRQ WR HQVXUH ZRPHQ¶V ODQG KROGLQJ ULJKW ZKLFK LV QHFHVVDU\ IRU
DJULFXOWXUDOSURGXFWLRQDQGSURGXFWLYLW\DQGWRVSHHGXSWKHGHYHORSPHQW
7KHIHGHUDO/DQG$GPLQLVWUDWLRQDQG/DQG8VH3URFODPDWLRQQR$UWLFOH F ,ELG$UWLFOH ,ELGDUWLFOH ϮϬϰ
/ŶƚĞƌǀŝĞǁǁŝƚŚDƌ͘ĚĂŵĞ'ĞƌĞŵĞǁ;Ɖƌŝů͕ϮϬϬϳͿ͕ƌĞƐŝĚĞŶƚƐŽĨĂůďĂ<ĞďĞůĞŝŶzŝƌŐĂĂĨĠǁŽƌĞĚĂŝŶ'ĞĚĞŽŽŶĞ͕^EEWZ^͕
ƚŚŝŽƉŝĂ͘
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvs
7KLVSURFODPDWLRQOLNH)HGHUDOODQGOHJLVODWLRQSURYLGHVWKDWDQ\UHVLGHQWUXUDO\RXWKVDQGZRPHQZKRZDQW
WRHQJDJHLQDJULFXOWXUHVKDOOKDYHWKHULJKWWRJHWDQGXVHUXUDOODQG0RUHRYHU$UW RIWKH611356
3URFODPDWLRQ SURYLGHVKXVEDQGDQGZLIHKDYH HTXDOXVH ULJKW RQWKHLUFRPPRQODQGKROGLQJVDQG
WKH\GRQRWORVHWKHLUODQGKROGLQJEHFDXVHRIWKHLUPDUULDJHWKDWWKH\SRVVHVVHGLQGLYLGXDOO\EHIRUH,WDOVR
DGGVWKDWZRPHQKRXVHKROGKHDGVVKDOOKDYHIXOOXVHULJKWRQWKHLUODQGKROGLQJV :RPHQZKRVHKXVEDQGV
DUH IRXQG EHLQJ HQJDJHG LQ JRYHUQPHQW VHUYLFHV RU LQ DQ\ RWKHU DFWLYLWLHV VKDOO KDYH WKH ULJKW WR XVH UXUDO
ODQGV7KHIDPLO\VKDOOQRWORVHWKHULJKWRIXVLQJWKHLUKROGLQJLQFDVHRIOLYLQJLQRWKHUDUHDRUGHDWKRIWKH
KXVEDQGRUZLIHRUERWK
:KHUHODQGLVMRLQWO\KHOGE\KXVEDQGDQGZLIHRUE\RWKHUSHUVRQVWKHKROGLQJFHUWLILFDWHVKDOOEHSUHSDUHGLQ
WKHQDPHRIDOOWKHMRLQWKROGHUV:KHQDKRXVHKROGKHDGLVZRPDQVKHVKDOOEHJLYHQDODQGKROGLQJDQGXVH
ULJKWFHUWLILFDWHLQKHUQDPH:RPHQVKDOOJHWDODQGXVHULJKWFHUWLILFDWHSUHSDUHGLQKHUQDPHHYHQZKHUH
KHUKXVEDQGLVIRXQGEHLQJHQJDJHGLQJRYHUQPHQWVHUYLFHVRULQDQGRWKHUVVHUYLFHV
:KDW DUH W\SLFDO ODQG ULJKWV UHFRJQL]HG E\ 611356 ODQG ODZ" 7KH W\SLFDO ODQG ULJKWV UHFRJQL]HG E\ ODZ
LQFOXGH WKH ULJKW WR SRVVHVV LQKHULW WUDQVIHU EHTXHDWK DQG UHQW 7KDW LV ZK\ $UW RI WKH 611356
3URFODPDWLRQ SURYLGHV DQ\ SHUVRQ ZKR LV D PHPEHU RI D SHDVDQW VHPL SDVWRUDOLVW DQG SDVWRUDOLVW
IDPLO\KDYHWKHULJKWWRXVHUXUDOODQGWKDWPD\EHREWDLQHGIURPKLVIDPLO\E\JLIWRULQKHULWDQFHRUIURPWKH
FRPSHWHQWDXWKRULW\
7KHRWKHUW\SLFDOULJKWUHFRJQL]HGE\WKHVDPHODZLVWKHULJKWWRUHQWWKHODQGXVHULJKW$FFRUGLQJO\$UW
DF RI3URF1RSURYLGHVSHDVDQW IDUPHUVVHPLSDVWRUDOLVWDQGSDVWRUDOLVWZKRDUHJLYHQODQG
KROGLQJ FHUWLILFDWHV FDQ UHQW RXW ODQG IRU IDUPHUV RU LQYHVWRUV IURP WKHLU KROGLQJ RI D VL]H VXIILFLHQW IRU WKH
LQWHQGHGGHYHORSPHQWLQDPDQQHUWKDWLWVKDOOQRWGLVSODFHWKHPIRUWKHGXUDWLRQRIWR\HDUV7KHODZ
DGGV WKDW KROGHU ZKLFK UHQWV IRU WR \HDUV DFFRUGLQJ WR $UW DF RI 3URF1R VKDOO EH
UHWXUQHG WR WKH ODQG KROGHUV ZKHQ WKH GXUDWLRQ FRPHV WR DQ HQG EDVHG RQ FLYLO FRGH )RU JXDUDQWHHLQJ WKH
UHWXUQLQJ RI ODQG WR KROGHU $UW RI SURF1R VWDWHV WKDW WKH UHQWDO DJUHHPHQW PDGH DFFRUGLQJ
$UW RI3URF1RKDVWREHDFFRPSOLVKHGEDVHGRQWKH FRQVHQWRIWKHIDPLO\RIWKHODQGKROGHU
LQFOXGLQJZRPDQDQGVKDOOEHDSSURYHGDQGUHJLVWHUHGE\WKHFRPSHWHQWDXWKRULW\OLNHNHEHOH$GPLQLVWUDWLRQ
RIILFH DQG DW ZRUHGD ODQG DGPLQLVWUDWLRQ RIILFH $OEHLW ODZ LPSRVHV FRQVHQW RI IDPLO\ PHPEHUV LQFOXGLQJ
$UW DQG RI3URFODPDWLRQ1R7KH6RXWKHUQ1DWLRQV1DWLRQDOLWLHVDQG3HRSOHV5HJLRQDO6WDWH5XUDO
/DQG$GPLQLVWUDWLRQDQG8WLOL]DWLRQ3URFODPDWLRQ KHUHDIWHU6113563URFODPDWLRQ1R
,ELG$UW ,ELG$UW ,ELG$UW ,ELG$UW RI6113563URFODPDWLRQ1R
$UW RI6113563URFODPDWLRQ1R
$UW RI6113563URFODPDWLRQ1R
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvt
ZRPDQ DV FRQGLWLRQ IRU YDOLGLW\ RI ODQG ULJKWV FRQWUDFWV WKH GDWD REWDLQHG IURP VWXG\ DUHD VKRZV KXVEDQG
PDNH FRQWUDFWV WR WUDQVIHU ODQG ULJKWV ZLWKRXW FRQVHQW RI ZLYHV $OWKRXJK WKH ODZ FRPSHOV FRQWUDFWLQJ
SDUWLHVWRDSSURYHDQGUHJLVWHUODQGULJKWV¶UHQWFRQWUDFWVZLWKNHEHOHRUZRUHGDODQGDGPLQLVWUDWLRQRUJDQWKH
GDWDREWDLQHGIURPWKHVWXG\DUHDVKRZVWKDWODQGUHQWVFRQWUDFWVDUHQRWDSSURYHGDQGUHJLVWHUHGEHIRUHNHEHOH
RUZRUHGDODQGDGPLQLVWUDWLRQERG\
$UW RI6113563URF1RLQGLFDWHVDQLQYHVWRUZKRKHOGUXUDOODQGE\OHDVHPD\SUHVHQWKLVXVH
ULJKWDVFROODWHUDOWRJHWFUHGLW7KLVSULYLOHJHLVJLYHQIRULQYHVWRUV+RZHYHUWKHODZGRHVQRWJLYHVXFKULJKW
WRSUHVHQWODQGKROGLQJULJKWDVFROODWHUDOIRUIDUPHUVLQFOXGLQJZRPHQWRJHWFUHGLWIURPILQDQFLDOLQVWLWXWLRQV
RU LQGLYLGXDOV DOWKRXJK WKH FRQVWLWXWLRQ LQGLFDWHV ZRPHQ PD\ JHW DIILUPDWLYH DFWLRQ LQ WKH GHYHORSPHQWDO
HQGHDYRUVRIWKHQDWLRQ)XUWKHUPRUHWKH611356UXUDOODQG3URF1RGRHVQRWHQWLWOHWKHZRPHQWR
KROGWKHUXUDOODQGE\OHDVH
7KH ODQG ODZ UHFRJQL]HV ZRPHQ ULJKW WR SRVVHVV WUDQVIHU EHTXHDWK UHQW DQG LQKHULW HWF RI ODQG ULJKWV
+RZHYHUWKHODZGRHVQRWUHFRJQL]HULJKWWRRZQODQGULJKWDV$UWRI)'5(DQG611356&RQVWLWXWLRQ
SURYLGHODQGRZQHUVKLSULJKWEHORQJVVWDWHDQGSHRSOHRI(WKLRSLD
7KHODZUHFRJQL]HVPDQ\PHFKDQLVPVRIDFTXLVLWLRQRIODQG7KHVHPHFKDQLVPVLQFOXGHJUDQWE\FRPSHWHQW
DXWKRULW\VHWWOHPHQWVXFFHVVLRQ)XUWKHUPRUH$UW RI3URF1RSURYLGHVJRYHUQPHQWEHLQJ
WKHRZQHURIUXUDOODQG FDQ FKDQJHFRPPXQDO UXUDOODQGKROGLQJVWRSULYDWHKROGLQJVDVPD\EHQHFHVVDU\
7KHODZGRHVQRWGLVFULPLQDWHZRPHQLQUHODWLRQZLWKZRPHQDFFHVVWRODQGULJKWV+RZHYHUWKLVVXEVLGLDU\
ODZGRHVQRWLQFOXGHSURYLVLRQVWKDWJLYHSULYLOHJHIRUZRPHQWRHQKDQFHZRPHQDFFHVVWRODQGULJKWVZKHQ
JRYHUQPHQWFKDQJHFRPPXQDOODQGKROGLQJWRSULYDWHODQGKROGGHVSLWHUHFRJQLWLRQRIDIILUPDWLYHDFWLRQXQGHU
$UWRI)'5(&RQVWLWXWLRQ/DFNRISURYLVLRQLQWKHODZWKDWHQDEOHJRYHUQPHQWWRJLYHSULYLOHJHIRUZRPHQ
PDLQWDLQVOHJDF\RILQMXVWLFHLQODQGSRVVHVVLRQDQGDOORFDWLRQPDWWHUV7KLVKDSSHQVEHFDXVHKLVWRULFDOO\ODQG
ULJKWVKDYHEHHQLQWKHKDQGVRIPHQGXHWRJHQGHUELDV
0RUHRYHU $UW RI 611356 5XUDO /DQG 3URF1R UHFRJQL]HV WKH UHDOORFDWLRQ RI UXUDO ODQG DV
PHFKDQLVP RI DFTXLVLWLRQ RI ODQG ULJKWV LQ 6RXWKHUQ UHJLRQ $FFRUGLQJO\ $UW RI 611356 5XUDO ODQG
SURF1R LQGLFDWHV IDUPODQGV ZKRVH KROGHUV DUH GHFHDVHG DQG KDYH QR KHLUV RU KDYH JRQH IRU
VHWWOHPHQW RU OHIW WKH ORFDOLW\ RQ RZQ ZLVK DQG VWD\HG RYHU D JLYHQ SHULRG RI WLPH VKDOO EH UHDOORFDWHG WR
SHDVDQWIDUPHUVVHPLSDVWRUDOLVWDQGSDVWRUDOLVWZKRKDYHODQGVKRUWDJHRUZKRKDYHQRODQG+RZHYHUWKLV
SURYLVLRQ GRHV QRW JLYH VSHFLDO ULJKW WR ODQGOHVV ZRPHQ ZKR FDQQRW JR IRU VHWWOHPHQW WR REWDLQ ODQG ULJKWV
,QWHUYLHZZLWK7DGHOHFK6DPXHO UHVLGHQWRI<LUJDFDIH:RUHGDŝŶ'ĞĚĞŽŽŶĞ͕^EEWZ^͕ƚŚŝŽƉŝĂ͘
Ϯϭϯ
,QWHUYLHZZLWK%HNHOH.RUH UHVLGHQWRI*HGHEZRUHGD:RUHGDŝŶ'ĞĚĞŽŽŶĞ͕^EEWZ^͕ƚŚŝŽƉŝĂ͘
Ϯϭϰ
6HH$UW DQG RI6113563URFODPDWLRQ1R
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvu
EHFDXVH WKH\ EULQJ XS FKLOGUHQ DQG WKH\ PD\ IHDU H[SRVXUH WR VH[XDO KDUDVVPHQW 611356 ODQG
3URF1RSURYLGHVGHWDLOVRQUHDOORFDWLRQRIODQGVKDOOEHGHWHUPLQHGE\WKHUHJXODWLRQ+RZHYHU
WKH UHJ1R GRHV QRW JLYH VSHFLDO HPSKDVLV WR ZRPHQ LQ UHODWLRQ WR UHDOORFDWLRQ RI ODQG 7KDW LV
ZRPHQ JHW ODQG ULJKWV VLPLODU WR RUGLQDU\ FLWL]HQV IRU WKH UHJXODWLRQ GRHV QRW H[WHQG VSHFLDO WUHDWPHQW IRU
ZRPHQ
7KHLPSRUWDQWLVVXHVDWMXQFWXUHLQFOXGH'RHVWKHODZJLYHDIILUPDWLYHDFWLRQLQUHODWLRQZLWKZRPHQDFFHVVWR
ODQG ULJKWV" $W IDPLO\ OHYHO GRHV WKH ODZ LPSRVH GXW\ RQ IDPLO\ WR JLYH DIILUPDWLYH DFWLRQ IRU GDXJKWHUV"
:KDWLVWKHSRVLWLRQRI611356ODQGODZLQUHODWLRQZLWKVSRXVH¶VVXFFHVVLRQRIHDFKRWKHU¶VSURSHUW\"'RHV
VSRXVHVXFFHHGHDFKRWKHURQGHDWKRIRQH¶VSDUWQHUXQGHU(WKLRSLDQ6XFFHVVLRQODZDQG611356ODQGODZV"
$UW DQG 611356 5XUDO ODQG 3URF1R SURYLGH LUULJDEOH ODQG KHOG E\ SHDVDQWV VHPL
SDVWRUDOLVWVRUSDVWRUDOLVWVEXWFRQVWUXFWHGE\WKHH[SHQVHRIWKHJRYHUQPHQWDQGLQGLYLGXDOO\XQRFFXSLHGODQG
DVZHOODVODQGVXQGHUWKHSRVVHVVLRQRIFRPPXQLW\RUJRYHUQPHQWZKLFKLVSRWHQWLDOIRUDJULFXOWXUHVKDOOEH
UHDOORFDWHG WR ODQGOHVV \RXWKV DQG SHDVDQWV ZKR KDYH OHVV IDUP ODQG +RZHYHU WKH ODZ GRHV QRW LQFOXGH
SURYLVLRQ WKDW SURYLGH VSHFLDO WUHDWPHQW IRU ZRPHQ LQ UHODWLRQ ZLWK UHDOORFDWLRQ RI ODQG WR HQKDQFH ZRPHQ
DFFHVV WR ODQG ULJKWV DOWKRXJK $UW RI )'5( DQG 611356 &RQVWLWXWLRQ LQFOXGH JHQHUDO DIILUPDWLYH
WUHDWPHQWFODXVHIRUZRPHQDQGVSHFLDOWUHDWPHQWRIZRPHQUHPDLQVRQSDSHUZKHQRQHVHDUFKLQWR(WKLRSLDQ
ODQGOHJLVODWLRQVLQSODFHLQWKHFRXQWU\LQJHQHUDODQGVWXG\DUHDLQSDUWLFXODU
7KDW LV XQGHU ERWK WKH )'5( DQG 611356 ODQG ODZV WKHUH LV QR FRQFHSW RI SHULRGLFDOO\ UHDGMXVWLQJ
ODQGKROGLQJVLQDFFRUGDQFHZLWKFKDQJHVLQKRXVHKROGPDNHXSOLNHDQ\FKDQJHLQWKHQXPEHURIPHPEHUVLQD
KRXVHKROGDVE\ELUWKGHDWKRUPDUULDJHDVSDUWRIODQGODZ UHIRUP 611356ODQG3URF1RGRHV
QRW UHFRJQL]H IUHTXHQW UHDGMXVWLQJ RI ODQGKROGLQJV WR HQKDQFH ZRPHQ DFFHVV WR ODQG ULJKWV ,QVWHDG RI WKLV
WUDGLWLRQDOO\ PHQ GRPLQDQFH LQ ODQGKROGLQJ V\VWHP SHUSHWXDWHV LQ SUDFWLFH LQ WKH VWXG\ DUHD )RU LVVXH WKDW
TXHVWLRQSRVVLELOLW\RIVSRXVHVVXFFHHGLQJHDFKRWKHUQHLWKHUJHQHUDOSURSHUW\ODZXQGHUFLYLOFRGHQRUSUHVHQW
ODQGOHJLVODWLRQVVLQFH¶V ERWKIHGHUDODQG611356 ODQGOHJLVODWLRQVLQSDUWLFXODUDOORZVSRXVHWRLQKHULW
RWKHU VSRXVHV HVWDWH RQ GHDWK RI DQRWKHU 7KH HYLGHQFH IRU WKLV LV LQ $UW RI FLYLO FRGH ZKLFK SURYLGHV
LPPRYDEOHSURSHUW\PXVWEHPDLQWDLQHGLQSDWHUQDORUPDWHUQDOOLQHIURPZKHUHLWZDVDFTXLUHGdŚĂƚŝƐƚŚĞ
ƌƵůĞŽĨƉĂƚĞƌŶĂƉĂƚĞƌŶŝƐŵĂƚĞƌŶĂŵĂƚĞƌŶŝƐŝƐĚĞƐŝŐŶĞĚƚŽĂůůŽĐĂƚĞĂŶŝŵŵŽǀĂďůĞƉƌŽƉĞƌƚLJƚŚĂƚŝƐŽďƚĂŝŶĞĚďLJ
ƚŚĞĚĞĐĞĂƐĞĚĨƌŽŵŽŶĞŽĨƚŚĞůŝŶĞƐďLJǁĂLJŽĨĚŽŶĂƚŝŽŶŽƌƐƵĐĐĞƐƐŝŽŶƚŽƚŚĞŚĞŝƌƐŽĨƚŚĞůŝŶĞĨƌŽŵǁŚŝĐŚƚŚĞ
ƉƌŽƉĞƌƚLJŝƐŽďƚĂŝŶĞĚͬWR&LYLO&RGH͘7KLVLVVHULRXVSUREOHPIRUZRPHQLQ(WKLRSLDQFRQWH[WZKHUH
ODQGULJKWVDUHGRPLQDWHGE\PHQSDWULDUFKDOFXOWXUHIURPWLPH RILPPHPRULDOSURYLGHGWKDWPDUULDJHLVWKH
GRPLQDQWPHDQVIRUDFTXLVLWLRQRIODQGULJKWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvv
%\ FXVWRP ZRPHQ UHWXUQ WR WKHLU IDPLOLHV DIWHU GLVVROXWLRQ RI PDUULDJH EXW WKHUH LV QR ODQG ULJKWV KROGLQJ
UHDGMXVWPHQW IURP WKHLU IDPLOLHV WR VXFK ZRPHQ H[SRVLQJ WKHP WR WKH VWDWXV RI ODQGOHVVQHVV 6RPH ZULWHUV
DUJXHWKDWUHDGMXVWLQJRIODQGKROGLQJVPD\FUHDWHODQGULJKWVWHQXUHVHFXULW\XQFHUWDLQW\7KHDXWKRUVRIWKLV
ZRUNSDUWO\DGPLWOLNHO\GHIHFWRIUHDGMXVWLQJRIODQGKROGLQJV LQUHGXFLQJWHQXUHVHFXULW\DQGLQYHVWPHQWRQ
ODQG +RZHYHU WKH GHIHFWV RI UHDGMXVWPHQW RI ODQGKROGLQJV FDQ EH UHFWLILHG E\ OHJLVODWLRQ WKDW SURWHFWV
FRQWUDFWHGODQGULJKWVRULQYHVWPHQWODQGULJKWVIURPUHDGMXVWPHQWVIRUSHULRGRIFRQWUDFWRULQYHVWPHQWDQG
WKLVHQDEOHVYLOODJHVWRJHWODQGWRKHOSSRSXODWLRQVZKRKDYH QRODQG ULJKWV7KHVHIDFWVHQDEOH DXWKRUVWR
DUJXHWKDWZRPHQKDYHOHVVDFFHVVWRODQGULJKWVLQ(WKLRSLD
͵ǤͶǤƒ†‹•’—–‡‡•‘Ž—–‹‘›•–‡—†‡””‘ Ǥ‘ǤͳͳͲȀʹͲͲ͹ƒ† –• ’ƒ –‘
‘‡ ‡••–‘ƒ†‹‰Š–•
7KH611356/DQG3URF1RUHFRJQL]HVDGPLQLVWUDWLYHERG\DQGFRXUWV\VWHPVWRVHWWOHODQGULJKWV
UHODWHGGLVSXWHV$UW RI611356/DQG3URF1RUHDGVZKHQWKHGLVSXWHDULVHVRYHUUXUDOODQG
KROGLQJULJKWWKHFDVHVKDOOEHEURXJKWWRNHEHOHODQGDGPLQLVWUDWLRQFRPPLWWHHZKLFKVKDOOOHWWKHGLVSXWHWR
EHUHVROYHGE\QHJRWLDWLRQDQGDUELWUDWLRQWKURXJKORFDOHOGHUVVHWE\WKHFKRLFHRIWKHWZRSDUWLHV$UW RI 611356 /DQG 3URF1R LQGLFDWHV LI DQ\ RQH ZKR LV QRW VDWLVILHG E\ WKH GHFLVLRQV PDGH E\ WKH
HOGHUVDFFRUGLQJWR$UW RI/DQG3URF1RVXFKSDUW\VKDOODSSHDOWKHFDVHWRZRUHGDFRXUWDQG
RWKHU UHJLRQDO FRXUWV RI KLJKHU KLHUDUFK\ :KDW LV LPSDFW RI GLVSXWH UHVROXWLRQ WKURXJK DUELWUDWLRQ RU
QHJRWLDWLRQ E\ NHEHOH ODQG DGPLQLVWUDWRU RU HOGHUV RQ ZRPHQ DFFHVV WR ODQG ULJKWV" $XWKRUV RI WKLV ZRUN
EHOLHYH FRQIHUULQJ WKH SRZHU WR VHWWOH ODQG GLVSXWHV WR NHEHOH ODQG DGPLQLVWUDWLRQ FRPPLWWHH WR EH VHWWOHG
WKURXJKQHJRWLDWLRQDQGDUELWUDWLRQWKURXJKORFDOHOGHUVWREHVHOHFWHGE\SDUWLHVJRHVDJDLQVWZRPHQDFFHVVWR
ODQGULJKWVEHFDXVHFXOWXUDOGLVSXWHUHVROXWLRQLVGRPLQDWHGE\PHQDQGH[SRVHZRPHQDFFHSWXQIDLUGHFLVLRQV
IHDULQJVRFLHWDOVWLJPDWL]DWLRQWRIRUJHDSSHDOWRUHYLHZWKHXQIDYRUDEOHGHFLVLRQV$XWKRUVFRQVLGHUWKDWFRXUW
VKRXOGEHWKHRQO\RUJDQZKRPXVWDGMXGLFDWHODQGGLVSXWHV
Ϯϭϱ
-RKQ:%UXFHHWDO DERYHQRWHS
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvw
͵ǤͷǤ ’Ž‡‡–ƒ–‹‘‘ˆ‘‡ƒ†‹‰Š–•
͵ǤͷǤͳǤ ’Ž‡‡–ƒ–‹‘‘ˆ‘‡ƒ†‹‰Š–•—†‡”ƒ†”‘ Ǥ‘ǤͳͳͲȀʹͲͲ͹
7KHPHUHUHFRJQLWLRQRIZRPHQODQGULJKWLVYDOXHOHVVLILWLV QRWVXSSRUWHGE\HIIHFWLYHDQG DGHTXDWHOHJDO
SURYLVLRQV WKDW LQFOXGH WKH PHFKDQLVPV IRU LPSOHPHQWDWLRQ RI ODQG ULJKWV $UW RI 611356 /DQG
3URFQR HPSRZHUV 5HJLRQDO %XUHDX RI $JULFXOWXUH DQG 5XUDO 'HYHORSPHQW5%$5' WR LPSOHPHQW
WKH UXUDO ODQG ODZ WKURXJK SURYLVLRQ RI SURIHVVLRQDO VXSSRUW DQG FRRUGLQDWLQJ WKH FRPSHWHQW DXWKRULW\ 2QH
PD\ LQWHUSUHW WKLV WR PHDQ 5%$5' KDV GXW\ WR H[WHQG SURIHVVLRQDO VXSSRUW IRU ZRPHQ WR HQDEOH WKHP WR
H[HUFLVH WKHLU ODQG ULJKWV %XW WKH ODZ GRHV QRW DGGUHVV VSHFLDO SURIHVVLRQDO VXSSRUW WKDW ZRPHQ GHVHUYH
0RUHRYHU$UW RI611356/DQG3URF1RLQGLFDWHVWKDW5%$5'(VWDEOLVKHVLQVWLWXWLRQVDWDOO
OHYHOVWKDWVKDOOLPSOHPHQWUXUDOODQGDGPLQLVWUDWLRQDQG/DQGXVHV\VWHPVDQGVKDOOVWUHQJWKHQWKHLQVWLWXWLRQV
DOUHDG\HVWDEOLVKHG7KLVLQFOXGHVWKHUHVSRQVLELOLW\WRHVWDEOLVKUXUDOODQGDGPLQLVWUDWLRQDQGXVHFRPPLWWHHDW
NHEHOH OHYHO +RZHYHU WKH GDWD JDWKHUHG IURP VWXG\ UHYHDOV WKHUH LV QR UXUDO ODQG DGPLQLVWUDWLRQ DQG XVH
FRPPLWWHHDWNHEHOHOHYHO
)XUWKHUPRUH $UW RI 611356 /DQG 3URF1R VWDWH 5%$5' VKDOO KDYH WKH UHVSRQVLELOLW\ WR
GHVLJQWKHVWUDWHJ\RIVHWWOHPHQWYLOODJL]DWLRQDQGGHYHORSPHQWRIVRFLDOVHUYLFHVWKDWKHOSVWREULQJDERXWD
EHWWHUV\VWHPRIUXUDOODQGXWLOL]DWLRQ,QRWKHUZRUGV5%$5'LVGXW\ERXQGWRSURYLGHVWUDWHJ\ DIILUPDWLYH
DFWLRQVFKHPHV DQGVRFLDOVHUYLFHV IUHHOHJDODLGVHUYLFHVIRUZRPHQ WRHQKDQFHZRPHQDFFHVVWRODQGULJKWV
LQWKHUHJLRQ1HYHUWKHOHVVUHJLRQ¶VODQGULJKWVLPSOHPHQWDWLRQV\VWHPGRHVQRWWDNHLQWRDFFRXQWRULQWHJUDWH
DIILUPDWLYHDFWLRQFODXVHLQFOXGHGLQWKH)HGHUDODQG611356FRQVWLWXWLRQV
͵ǤͷǤʹ—”ƒŽƒ††‹‹•–”ƒ–‹‘ƒ†•‡‡‰—Žƒ–‹‘‘Ǥ͸͸ȀʹͲͲ͹
7KH 611356 5XUDO /DQG $GPLQLVWUDWLRQ DQG 8VH 5HJXODWLRQ 1R KDV EHHQ LVVXHG WR LPSOHPHQW
SURFODPDWLRQ1R7KHUHJXODWLRQLVHQDFWHGWRJRYHUQ GHWDLOPDWWHUVDERXWLPSOHPHQWDWLRQRIODQG
ULJKWV )RU WKLV VWXG\ RQH PD\ H[SHFW VSHFLILF SURYLVLRQV ZKLFK HQKDQFH ZRPHQ DFFHVV WR ODQG ULJKWV 7KH
FRPLQJSDUDJUDSKVZRXOGDGGUHVVWUHDWPHQWRIZRPHQDFFHVVWRODQGULJKWVXQGHU5XUDO/DQG$GPLQLVWUDWLRQ
DQG8VH5HJXODWLRQ1R
&RQVLVWHQWZLWK611356ODQG3URF1RWKH611356UXUDOODQGXVHUHJXODWLRQ1RSURYLGHV
KXVEDQGDQGZLIHVKDOOKDYHHTXDOXVHULJKWRQWKHLUKROGLQJ 7KHQ611356ODQG3URF1RDGGV
Ϯϭϲ
/ŶƚĞƌǀŝĞǁǁŝƚŚDƌ͘ĚĂŵĞ'ĞƌĞŵĞǁ;Ɖƌŝů͕ϮϬϭϱͿ͕ĂďŽǀĞƐƵƉƌĂŶŽƚĞϮϬϰ͘
$UW 7KH6RXWKHUQ1DWLRQV1DWLRQDOLWLHVDQG3HRSOHV5HJLRQDO6WDWH5XUDO/DQG$GPLQLVWUDWLRQDQG8VH5HJXODWLRQ1R
$UW :RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvx
WKDWKXVEDQGDQGZLIHVKDOOMRLQWO\XVHWKHLUSRVVHVVLRQZKLFKWKH\JRWEHIRUHWKHLUPDUULDJH611356ODQG
3URF1RDOVRVWDWHVWKDWKXVEDQGDQGZLIHVKDOOMRLQWO\XVHWKHUXUDOODQGWKDWWKH\JRWDIWHUPDUULDJH
WKURXJK LQKHULWDQFH RU RWKHU PHDQV 7KH UHJXODWLRQ SURYLGHV WKDW ZRPDQ H[HUFLVH ODQG ULJKWV WKH\ JHW
GXULQJDIWHUPDUULDJH+RZHYHULWGRHVQRWDGGUHVVKRZZRPDQPD\DFTXLUHODQGEHIRUHPDUULDJH
611356UXUDOODQGXVHUHJXODWLRQ1RDOVRVWDWHWKDWZKHQWKHODQGLVMRLQWO\RZQHGE\VSRXVHVRUDQ\
RWKHUSHUVRQVERWKKXVEDQGDQGZLIHVKDOOMRLQWO\JHWUXUDOODQGXVHULJKWFHUWLILFDWH$FFRUGLQJWRWKLVODZLI
WKHKXVEDQGDQGZLIHKDYHODQGKROGLQJEHIRUHWKHLUPDUULDJHWKH\VKDOOMRLQWO\JHWDODQGXVHULJKWFHUWLILFDWH
DIWHUWKHLUPDUULDJH0RUHRYHULWSURYLGHVWKDWWKRVHZKRKDYHODQGKROGLQJVLQPRUHWKDQRQHNHEHOHWKH\
VKDOO JHW ODQG XVH ULJKW FHUWLILFDWH LQ HDFK NHEHOHV +RZHYHU WKHUH LV QR DGMXVWPHQW RI ODQG KROGLQJ
FHUWLILFDWHDIWHUFRQFOXVLRQRIPDUULDJHDQGWKHUHLVFDVHZKHQPHQWU\KROGODQGE\WKHLURZQQDPHLIVXVSHFW
GLVVROXWLRQRIPDUULDJHDWH[SHQVHRIZRPHQ
͵ǤͷǤ͵Ǥ”‹–‹ ƒŽƒŽ›•‹•‘ˆ‘‡ ‡••–‘ƒ†‹‰Š–•—†‡”—”ƒŽƒ†
†‹‹•–”ƒ–‹‘ƒ†•‡‡‰—Žƒ–‹‘‘Ǥ͸͸ȀʹͲͲ͹
$$VVXULQJ5XUDO/DQG8VH5LJKW
6LPLODUZLWK$UWRI3URF1R$UWRI611356RI5HJXODWLRQ1RSURYLGHV\RXWKZKR
QHHGWRHQJDJHLQ$JULFXOWXUHVKDOOKDYHWKHULJKWWRJHWODQGIURPVHWWOHPHQWSURJUDPXVHUXUDOODQGULJKWWR
JHWDQGXVHUXUDOODQGIURPFRPPXQDOODQGJRYHUQPHQW¶VKROGLQJDQGIURPLQKHULWDQFH7KHSUREOHPZLWKWKLV
SURYLVLRQLVWKHLQWHUHVWWRHQJDJHLQ$JULFXOWXUHLVWKHFRQGLWLRQWRJHWODQGXVHULJKWV7KHLPSOLFDWLRQRIWKH
SURYLVLRQ LV LI WKH ZRPDQ GRHV QRW KDYH LQWHUHVW WR HQJDJH LQ DJULFXOWXUH VKH GRHV QRW JHW ODQG ULJKWV %XW
ZRPHQPD\XVHODQGULJKWVZLWKRXWQHFHVVDULO\HQJDJLQJLQDJULFXOWXUHSHUVRQDOO\7KH\PD\XVHODQGULJKWV
E\ UHQWLQJ LW WR WKLUG SDUW\ ZKR GHYHORS LW IRU WKHP 6XFK SURYLVLRQ LV OHJDO FKDOOHQJH IRU ZRPHQ DQG PD\
UHGXFHZRPHQDFFHVVWRODQGULJKWVSURYLGHGWKDWQDWXUDOO\DJULFXOWXUHLVLQFRQYHQLHQWIRUZRPHQEHFDXVHWKH\
DGGLWLRQDOEXUGHQWRUHDUWKHFKLOGUHQ$XWKRUVRIWKLVZRUNEHOLHYHWKLVLVDJDLQVWZRPHQDFFHVVWRODQGULJKWV
EHFDXVHFLWL]HQVKRXOGJHWDFFHVVWRODQGULJKWVXQFRQGLWLRQDOO\7KH611356RI5HJXODWLRQ1R GRHV
QRW DGG WRRWK WR SURFODPDWLRQ HLWKHU )RU LQVWDQFH $UW RI UHJXODWLRQ 1R WDONV DERXW WKH YDJXH
HTXDOLW\ RI XVDJH RI ODQG ULJKWV DFTXLUHG EHIRUH DQG DIWHU PDUULDJH E\ VSRXVHV %XW IDPLO\ ODZ SURYLGHV
VSRXVHV FDQ UHJLVWHU WKH SULYDWH ODQG KROGLQJV WKH\ KDYH EHIRUH PDUULDJH DV SULYDWH SURSHUW\ 7KLV LV FOHDUO\
LQFOXGHGXQGHU$UWRI611356)DPLO\&RGHZKLFKSURYLGHVWKHSURSHUW\WKDWVSRXVHVSRVVHVVRQWKHGD\
,ELG$UW $
,ELG$UW %
,ELG$UW $
,ELG$UW %
,ELG$UW &
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvy
RIPDUULDJHRUZKLFKWKH\DFTXLUHGDIWHUWKHLUPDUULDJHE\VXFFHVVLRQRUGRQDWLRQVKDOOUHPDLQWKHLUSHUVRQDO
SURSHUW\ 7KDW LV KXVEDQGV ZKR WUDGLWLRQDOO\ KROG ODQG ULJKWV FDQ UHIXVH HTXDO XVDJH RI ODQG ULJKWV DFTXLUHG
EHIRUHPDUULDJHDQGSUHYHQWHTXDOGLYLVLRQRIODQGULJKWVDIWHUWKHGLVVROXWLRQRIPDUULDJHE\XVLQJFRQWUDFWRI
PDUULDJH7KHLPSOLFDWLRQRIWKLVLVWKDWODQGULJKWVFDQEHPDLQWDLQHGDWKDQGVRIKXVEDQGVPHQZKRDFTXLUHG
LWWKURXJKXQIDLUODQGGLVWULEXWLRQGXHWRJHQGHUELDVLQ(WKLRSLDQVRFLHW\LQFOXGLQJVRXWKHUQUHJLRQ
6LPLODUZLWK3URF1R$UWRI6113565HJ1RDGGUHVVLVVXHVRI5XUDOODQG5HJLVWUDWLRQ
DQG&HUWLILFDWLRQ$FFRUGLQJO\$UW D RIWKH6113565HJ1RSURYLGHV ZKHQWKHODQGLVMRLQWO\
RZQHGE\VSRXVHVRUDQ\RWKHUVERWKKXVEDQGDQGZLIHVKDOOMRLQWO\JHWUXUDOODQGXVHULJKWFHUWLILFDWH7KLV
SURYLVLRQ EHQHILWV ZRPDQ RQO\ IRU ODQG ULJKWV DFTXLUHG E\ VSRXVHV IURP JRYHUQPHQW WKURXJK DOORFDWLRQ RI
FRPPXQDO ODQG DQG LW PD\ QRW DGGUHVV RWKHU VFHQDULRV RI DFTXLVLWLRQ RI ODQG $UW E RI 611356
5HJ1RSURYLGHV LIWKHKXVEDQGDQGZLIHKDYHODQGKROGLQJEHIRUHWKHLUPDUULDJHWKH\VKDOOMRLQWO\
JHWDODQGXVHULJKWFHUWLILFDWHDIWHUWKHLUPDUULDJH7KLVSURYLVLRQVHHPVWRIDYRULQWHUHVWRIZRPHQZKRPD\
JHWODQGULJKWVSRVVHVVHGE\PHQGXHWRJHQGHUELDVZKLFKHQFRXUDJHODWWHU+RZHYHUWKLVSURYLVLRQGRHVQRW
DSSHDU IHDVLEOH EHFDXVH $UW RI 611356 IDPLO\ FRGH SURYLGHV WKH SURSHUW\ QRW DFTXLUHG E\ RQHURXV WLWOH
ZKLFKVSRXVHVSRVVHVVRQWKHGD\RIWKHLUPDUULDJHRUZKLFKWKH\DFTXLUHGDIWHUWKHLUPDUULDJHE\VXFFHVVLRQ
RUGRQDWLRQVKDOOUHPDLQWKHLUSHUVRQDOSURSHUW\7KH VSRXVH HVSHFLDOO\ PHQZKRKDYHODQGEHIRUHPDUULDJH
FDQUHJLVWHUODQGLQWKHLUQDPHDVSHUVRQDOSURSHUW\REMHFWLQJ LWVMRLQWSRVVHVVLRQDQGFHUWLILFDWLRQDGYRFDWHG
E\$UWRI611356ODQG3URF1RDQG$UW RI611356ODQG5HJXODWLRQ1R7KXVWKH
ODZKDVORSHKROHDQGKDVQRDGHTXDWHOHJDOIUDPHZRUNWRHQKDQFHZRPHQDFFHVVWRODQGULJKWV
%7UDQVIHURI/DQG5LJKWV
7KHRWKHULPSRUWDQWFRQFHUQUHODWHGZLWKZRPHQDFFHVVWRODQGULJKWLVWUDQVIHURIODQGULJKWV$UW D RI
611356 5HJXODWLRQ 1R LQGLFDWHV SHDVDQW IDUPHUV RU SDVWRUDOLVWV ZKR JRW UXUDO ODQG XVH ULJKW
FHUWLILFDWHVKDOOWUDQVIHUWKHLUSRVVHVVLRQVYLDOHDVLQJRXWDSORWRIODQGXQGHUKLVKHUKROGLQJZKHQWKHUHLVDQ
DJUHHPHQWRIKLVIDPLO\7KHVDPHSURYLVLRQDGGVWKHDJUHHPHQWWROHDVHWKHODQGULJKWVKDOOEHDSSURYHGE\
WKH VLJQDWXUH RI WKH KXVEDQG DQG ZLIH DV ZHOO DV FRQVHQW RI RWKHU IDPLO\ PHPEHUV +RZHYHU SUDFWLFDOO\
PHQKXVEDQGVOHDVHRXWWKHODQGULJKWVZLWKRXWFRQVHQWRIZLIH,QDGGLWLRQWKRXJK$UW G RI611356
5HJXODWLRQ 1R SURYLGHV WKH FRS\ RI UHQWLQJ WKH DJUHHPHQW VKDOO EH NHSW LQ NHEHOH DGPLQLVWUDWLRQ
RIILFH GDWD FROOHFWHG WKURXJK REVHUYDWLRQ LQ WKH VWXG\ DUHD SRUWUD\V QR VLQJOH ODQG ULJKWV UHQWLQJ FRQWUDFW LV
UHJLVWHUHG LQ WKH VWXG\ DUHD WKRXJK UHVSRQGHQWV GLVFORVH WKDW WKHUH LV FHUWDLQ ODQG ULJKW UHQWHG LQ WKH VWXG\
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWvz
DUHD6XFKODQGULJKWVDUHEHLQJWUDQVIHUUHGWRWKLUGSDUW\ ZLWKRXWFRQVHQWRIZRPDQGHWHULRUDWLQJHIIHFWRI
ODQGULJKWV
0RUHRYHU$UW F RI6113565HJXODWLRQ1R VKRZVVSHFLDODWWHQWLRQVKDOOEHJLYHQWRZRPHQ
E\ WKH FRQFHUQHG ERG\ DW DOO OHYHO ZKLOH WUDQVIHU RI ODQG ULJKWV WKURXJK UHQWLQJ RXW WKHLU KROGLQJ %XW WKLV
SURYLVLRQLVYDJXHEHFDXVHLWGRHVQRWLQGLFDWHZKDWNLQGRIVSHFLDODWWHQWLRQFRXOGEHJLYHQWRZRPHQ
,Q UHODWLRQ ZLWK LPSOHPHQWDWLRQ RI ZRPHQ ODQG ULJKWV $UW RI 5HJXODWLRQ 1R HPSRZHUV WKH
5HJLRQDO%XUHDXRI$JULFXOWXUHDQG5XUDO'HYHORSPHQW$FFRUGLQJO\$UW D RI5HJXODWLRQ1R
SURYLGHV WKH EXUHDX VKDOO OHW WKH FRPPXQLW\ WR HOHFW DERXW UXUDO ODQG DGPLQLVWUDWLRQ DQG XVH FRPPLWWHH
PHPEHU LQ HDFK NHEHOH +RZHYHU LQ VWXG\ DUHD WKHUH LV QR UXUDO ODQG DGPLQLVWUDWLRQ DQG XVH FRPPLWWHH LQ
NHEHOHVPDOOHVW XQLW RI ZRUHGD DGPLQLVWUDWLRQ 7KH SURYLVLRQ VD\V QRWKLQJ DERXW LQYROYHPHQW RI ZRPHQ LQ
UXUDOODQGDGPLQLVWUDWLRQDQGXVHFRPPLWWHH7KXVLWLVGLIILFXOWWRVD\UHJXODWLRQLQFOXGHVSURYLVLRQWKDWPD\
HQKDQFHZRPHQDFFHVVWRODQGULJKWV$UW E RI5HJXODWLRQ1RJUDQWVWKHGXWLHVUHVSRQVLELOLWLHV
DQGGXUDWLRQRIFRPPLWWHHVKDOOEHGHWHUPLQHGE\WKHGLUHFWLYHV7KHSURYLVLRQRIGLUHFWLYHSURYLGHV LIDQ\ ϮϮϯ
,QWHUYLHZZLWKZRUNX.RUHDQG=HPHG%LUKDQX UHVLGHQWRI*HGHEZRUHGD:RUHGDŝŶ'ĞĚĞŽŽŶĞ͕^EEWZ^͕ƚŚŝŽƉŝĂ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWv{
Šƒ’–‡” ‘—”ǣ”‡˜ƒ‹Ž‹‰”ƒ –‹ ‡‘ˆ‘‡ ‡••–‘ƒ†‹‰Š–•‹‘ˆ
–Š‹‘’‹ƒǣƒ•‡‘ˆ ‡†‡‘‘‡
ͶǤͳǤ –”‘†— –‹‘
*HGHR ZRPHQ KDYH EHHQ WKH WDUJHW SRSXODWLRQ RI WKLV VWXG\ 7ZR ZRUHGDV JHGHE DQG \LUJD FKHIH ZHUH
VHOHFWHGSXUSRVHO\)URPWKLVDUHDZRPHQZHUHLGHQWLILHGDVWKHVDPSOHIUDPHRIWKHVWXG\7KHVHZRPHQ
ZHUHUDQGRPO\VHOHFWHGDQGLQYLWHGWRSDUWLFLSDWHLQWKHGDWDFROOHFWLRQWKURXJKLQWHUYLHZ DQGTXHVWLRQQDLUH
2IWKLVSRSXODWLRQDWRWDORIFRPSOHWHGDQGUHWXUQHGXVDEOHVXUYH\VPDNLQJWKHUHVSRQVHUDWH7R
DQDO\]HWKHFROOHFWHGGDWD9HUVLRQRIWKH6WDWLVWLFDO3DFNDJHIRUWKH6RFLDO6FLHQFHV 6366 ZDVXVHG
'HWDLOHG GDWD VXFK DV DJH RI WKH UHVSRQGHQWV PDULWDO VWDWXV DQG RWKHU LQIRUPDWLRQ RQ WKH UHVSRQGHQWV ZHUH
FROOHFWHG 'DWD ZHUH DOVR FROOHFWHG IURP )RFXV *URXS 'LVFXVVLRQV )*' LQ ZKLFK WZR RI WKHP KDG WHQ
PHPEHUVDQGWKHRWKHURQHKDGPHPEHUVSHUFHQWRIIRFXVJURXSGLVFXVVLRQSDUWLFLSDQWVZHUHZRPHQ
ͶǤʹǤ‡”•‘ƒŽ‡‘‰”ƒ’Š‹ Šƒ”ƒ –‡”‹•–‹ •‘ˆ–Š‡‡•’‘†‡–•
7RGHWHUPLQHWKHGHPRJUDSKLFSURILOHVRIWKHVDPSOHSRSXODWLRQGHVFULSWLYHVWDWLVWLFVZHUHFDOFXODWHGDFURVV
WKHIROORZLQJYDULDEOHVDJHJHQGHUPDULWDOVWDWXVWKHUHVLGHQFHDQGHGXFDWLRQDOOHYHORIUHVSRQGHQWV
7DEOHVXPPDUL]HUHVSRQGHQWVSHUVRQDOGHPRJUDSKLF&KDUDFWHULVWLFV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwr
)UHTXHQF\
5ROO
1R
&KDUDFWHULVWLFV
5HVSRQGHQW 3HUFHQW
$JHRIUHVSRQGHQW
\HDUV
\HDUV
$ERYH\HDUV
6H[RIUHVSRQGHQWV
)HPDOH
0DOH
0DULWDOVWDWXVRIUHVSRQGHQW
6LQJOH
'LYRUFHG
:LGRZHG
0DUULHG
5HVLGHQFHRIUHVSRQGHQWV
5XUDO
8UEDQ
(GXFDWLRQDOOHYHORIUHVSRQGHQWV
,OOLWHUDWH
3ULPDU\
6HFRQGDU\
'LSORPD
'HJUHH
6RXUFH$XWKRUV¶)LHOG6XUYH\
'HVFULSWLYH VWDWLVWLFV IRU JHQGHU UHYHDOHG WKDW SHUFHQW RI WKH UHVSRQGHQWV ZHUH IHPDOH DQG SHUFHQW
ZHUHPDOH$JHZLVHWKHYDVWPDMRULW\RIWKHUHVSRQGHQWV ZHUHLQWKHDJHEUDFNHWVEHWZHHQDQG
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWws
RIZKLFKDUHDJHGEHWZHHQ5HVSRQGHQWVZKRDUHLQWKHLUIRUWLHVDUHDQGWKH\DFFRXQWIRU
DERXWRIWKHWRWDOUHVSRQGHQWV
7DEOH DOVR VKRZV WKDW WKH YDVW PDMRULW\ RI WKH UHVSRQGHQWV ZKLFK DFFRXQWV KDYH PDUULHG
IROORZHGE\VLQJOHUHVSRQGHQWVWKDWFRQVWLWXWHRIVDPSOHSRSXODWLRQ7DEOHLPSOLHVVHYHQLQGLYLGXDOV
DUHGLYRUFHGZKLOHIRXUUHVSRQGHQWV DUHZLGRZHG 7DEOHLQGLFDWHVWKDWUHVSRQGHQWV UHVLGH LQ UXUDO ZKLOH WKH UHVW UHVLGH LQ XUEDQ DUHD )XUWKHUPRUH 7DEOH LPSOLHV WKDW UHVSRQGHQWV DUHLOOLWHUDWHUHVSRQGHQWV KDYHSULPDU\HGXFDWLRQRQHUHVSRQGHQWKDVVHFRQGDU\
HGXFDWLRQ DQG WKUHH SHUVRQV KDYH GLSORPD OHYHO ZKLOH RQH UHVSRQGHQW KDV GHJUHH OHYHO
HGXFDWLRQ ͶǤ͵Ǥš–‡–‘ˆ‘‡ ‡••–‘ƒ†‹‰Š–•‹ ‡†‡‘‘‡
([DPLQLQJWKHH[WHQWRIZRPHQ¶VDFFHVVWRODQGULJKWVLQWKHVWXG\DUHDLVWKHILUVWUHVHDUFKREMHFWLYH7KH
H[WHQW RI ZRPHQ DFFHVV WR ODQG ULJKW LV GHWHUPLQHG E\ GLIIHUHQW IDFWRUV $JH PDULWDO VWDWXV DQG HGXFDWLRQDO
OHYHOPD\DIIHFWZRPHQDFFHVVWRODQGULJKWV7KRXJKGDWDREWDLQHGIURPLQWHUYLHZZLWKUHVSRQGHQWVGRHVQRW
UHYHDOWKHLPSDFWRI DJHRIUHVSRQGHQWVDQGPDULWDOVWDWXVRIKRXVHKROGKHDGRQH[WHQWRIZRPHQ¶VDFFHVVWR
ODQGULJKWLQIRUPDWLRQREWDLQHGIURPIRFXVJURXSGLVFXVVLRQVKRZVUHODWLRQEHWZHHQZRPHQ¶VDFFHVVWRODQG
ULJKW DQG WKHVH GHPRJUDSKLF FKDUDFWHULVWLFV 7KH IRFXV JURXS GLVFXVVLRQ LPSOLHV ZRPHQ ZKRVH DJH LV PRUH
WKDQ \HDUV ROG KDYH PRUH DFFHVV WR ODQG ULJKWV WKDQ ZRPHQ ZKRVH DJH LV OHVV WKDQ \HDUV ROG EHFDXVH
ZRPHQ LQ KLJKHU DJH FODVV KDYH PRUH SUREDELOLW\ WR EH PDUULHG DFFHVV WR ODQG ZLWK KXVEDQG RU ZLGRZHG
ODQGUHPDLQVDWWKHLUFRQWURORQGHDWKRIKXVEDQGRUGLYRUFHG ZRPHQVKDUHODQGIURPKXVEDQGRQGLYRUFH ZKHUHDVZRPHQZKRVHDJHLVOHVVWKDQ\HDUVROGDUHXQGHUFRQWURORIWKHLUSDUHQWVZKRGHQ\WKHLUDFFHVVWR
ODQGULJKWVGXHWRFXVWRPDU\ODQGKROGLQJODZVZKLFKSURKLELWRUDWOHDVWGLVFULPLQDWHODQGWUDQVIHUWRGDXJKWHUV
$XWKRUV¶ILHOGVXUYH\$SULO IRFXVJURXSGLVFXVVLRQKHOG DW<LUJDFKDIHZRUHGDFDOEDNHEHOH*HGHR
=RQH611356(WKLRSLD 0RUHRYHU IRFXV JURXS GLVFXVVLRQ VKRZV PDUULHG ZRPHQ KDYH EHWWHU DFFHVV WR ODQG ULJKWV FRPSDUHG ZLWK
VLQJOHZRPHQZKLOHZLGRZHGDQGGLYRUFHGKDVLPSURYHGFRQWURORYHUODQGULJKWVFRPSDUHGZLWKZRPHQLQ
PDUULDJH ZKRVH ODQG ULJKW LV FRQWUROOHG E\ KXVEDQG $XWKRUV¶ ILHOG VXUYH\ $SULO IRFXV JURXS
GLVFXVVLRQKHOGDW<LUJDFKDIHZRUHGDFDOEDNHEHOH*HGHR=RQH611356(WKLRSLD :RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwt
:RPHQSDUWLFLSDWLRQLQODQGULJKWPDWWHULVDPRQJWKHIDFWRUZKLFKGHWHUPLQHVZRPHQDFFHVVWRODQGULJKWV
:RPHQSDUWLFLSDWLRQLQODQGPDWWHULVH[SUHVVHGWKURXJKWKHLULQYROYHPHQWLQODQGPHHWLQJ
7DEOH:RPHQ3DUWLFLSDWLRQLQ/DQG5LJKWV$IIDLUV
'R :RPHQ 3DUWLFLSDWH LQ /DQG ULJKW )UHTXHQF\
PHHWLQJ"
3HUFHQW
&XPXODWLYH3HUFHQW
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
7DEOH LQGLFDWHV RI UHVSRQGHQWV SDUWLFLSDWH RQ ODQG ULJKW PHHWLQJ ZKLOH RI UHVSRQGHQWV GR QRW
SDUWLFLSDWHRQODQGULJKWPHHWLQJ'DWDREWDLQHGIURPIRFXVJURXSGLVFXVVLRQLPSOLHVVRPHWLPHVZRPHQPD\
QRWEHLQYROYHGLQODQGULJKWSROLFLHVDQGGLVFXVVLRQV
7DEOH([WHQWRIZRPHQSRZHUWRHQIRUFHODQG5LJKWVLQWKHVWXG\DUHD
:KDWLVWKHH[WHQWRIZRPHQSRZHUWRHQIRUFHODQG5LJKWVLQWKH )UHTXHQF\ 3HUFHQW 9DOLG
VWXG\DUHD"
3HUFHQW
9HU\+LJK
0HGLXP
/RZ
9HU\/RZ
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
7RNQRZWKHH[WHQWRIZRPHQDFFHVVWRODQGULJKWVUHVHDUFKHUVSUREHWKHH[WHQWRIZRPHQSRZHUWRHQIRUFH
ODQG5LJKWVLQWKHVWXG\ DUHD 'DWD JDWKHUHG IURPVWXG\ DUHDVKRZVRIUHVSRQGHQWVKHOGWKDWZRPHQ
KDYHORZSRZHUWRHQIRUFHODQGULJKWVZKLOHRIUHVSRQGHQWVKROGWKDWZRPHQKDYHKLJKSRZHUWRHQIRUFH
ODQGULJKWV7KLVOHVVZRPHQ¶VSRZHUWRHQIRUFHODQGULJKWVLPSOLHVWKDWZRPHQGRQRWKDYHHTXDODFFHVVWR
ODQGULJKWV7KHUHVWRIUHVSRQGHQWVKHOGWKDWZRPHQKDYH PHGLXPSRZHUWRHQIRUFHODQG5LJKWV7KH
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwu
)*'DOVRLPSOLHVWKDWZRPHQKDYHOHVVSRZHUWRHQIRUFHODQGULJKWVLQVWXG\GXHWRIDFWRUVGLVFXVVHGVHFWLRQ
7DEOH:RPHQ$FFHVVWR)UHH/HJDO$LG6HUYLFH
)UHTXHQF\
3HUFHQW
$JUHH
1HXWUDOQRWVXUH
'LVDJUHH
6WURQJO\'LVDJUHH
7RWDO
:RPHQKDYHDFFHVVWRIUHHOHJDODLGVHUYLFH
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH LPSOLHV RI UHVSRQGHQWV KROG WKDW ZRPHQ GR QRW KDYH DFFHVV WR OHJDO DLG VHUYLFH UHVSRQGHQWV¶ UHYHDOV WKDW ZRPHQ KDYH DFFHVV WR OHJDO DLG VHUYLFH ZKLOH RI UHVSRQGHQWV DUH QRW VXUH
UHJDUGLQJZRPHQDFFHVVWROHJDODLGVHUYLFH)*'DOVRFRQILUPVZRPHQGRQRWKDYHDGHTXDWHDFFHVVWROHJDO
DLGVHUYLFHLQWKHVWXG\DUHD/DFNRIOHJDODLGDQGRWKHUVXSSRUWVDIIHFWZRPHQDFFHVVWRODQGULJKWV
7DEOH 7KH H[WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVV
:KDWLV([WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVV )UHTXHQF\
3HUFHQW
+LJK
0HGLXP
/RZ
YHU\ORZ
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHLPSOLHVRIUHVSRQGHQWVKROGVWKHH[WHQWRIODQGGLVSXWHVHQGLQJZLWKZRPHQVXFFHVVLVORZ
ZKLOHRIUHVSRQGHQWVKROGWKDW WKHH[WHQWRIODQGGLVSXWH HQGLQJZLWKZRPHQVXFFHVVLVKLJKZKHUHDV
RIUHVSRQGHQWVVD\WKHH[WHQWRIODQGGLVSXWHVHQGLQJZLWKZRPHQVXFFHVVLVPHGLXP)*'LQVWXG\DUHD
ZDVPDGHZKHWKHUZRPDQORVVODQGULJKWVGLVSXWHVOLWLJDWLRQRISDUWLFLSDQWVRIIRUXPJURXSGLVFXVVLRQ
KROG WKDW ZRPHQ ORVH PRVW RI ODQG ULJKWV GLVSXWHV OLWLJDWLRQ FRQILUPLQJ GDWD REWDLQHG IURP LQWHUYLHZ ZKLOH
RI UHVSRQGHQWV KROG ZRPHQ GR QRW ORVV PRVW ODQG ULJKWV GLVSXWHV OLWLJDWLRQ ZKHUHDV RI
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwv
UHVSRQGHQWV DUH QRW VXUH ZKHWKHU RU QRW ZRPHQ ORVV PRVW RI ODQG ULJKWV GLVSXWHV OLWLJDWLRQ 7KLV LPSOLHV
ZRPHQDFFHVVWRODQGULJKWLVORZ
7DEOH:RPDQ*HW/DQG5LJKWVEHIRUH0DUULDJHYLVDYLV$JHRI5HVSRQGHQWV
:RPDQ JHW ODQG ULJKWV EHIRUH DJHRIUHVSRQGHQWV
PDUULDJH
3HUFHQW 7RWDO
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
7KHGDWDLQWKHWDEOH UHYHDOVDJHFRUUHODWLRQZLWKZRPHQDFFHVVWRODQGULJKWVLVLQVLJQLILFDQW$VWDEOH
VKRZVRIWKHUHVSRQGHQWVKROGWKDWZRPHQGRQRWDFTXLUHODQGULJKWVEHIRUHPDUULDJHZKLOHRQO\RI
UHVSRQGHQWV KROG WKDW ZRPHQ JHW ODQG ULJKWV EHIRUH PDUULDJH 7KH GDWD REWDLQHG IURP )*' DOVR LPSOLHV
ZRPHQGRQRWDFTXLUHODQGULJKWVEHIRUHPDUULDJH7KLVLQWXUQUHGXFHVZRPHQDFFHVVWRODQGULJKWVPDNLQJ
PDUULDJHWKHGRPLQDQWPHDQVIRUDFTXLVLWLRQRIODQGULJKWV
7DEOH(TXDOLW\RI6RQVDQG'DXJKWHUV5HJDUGLQJ,QKHULWDQFHRI/DQG5LJKWV
6RQV DQG GDXJKWHUV KDYH HTXDO ULJKWV WR ,QKHULW /DQG )UHTXHQF\ 3HUFHQW &XP3HUFHQW
5LJKWV
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH LPSOLHV RI UHVSRQGHQWV KROG WKDW VRQV DQG GDXJKWHUV GR QRW KDYH HTXDO DFFHVV WR LQKHULW
ODQGULJKWVZKLOHRIUHVSRQGHQWVKROGWKDWVRQVDQGGDXJKWHUVKDYHHTXDODFFHVVWRLQKHULWODQGULJKWVLQ
WKHVWXG\DUHD5HVSRQGHQWZRPHQKHOGWKDWWKH\GRQRWKDYHHTXDODFFHVVWRODQGULJKWVFRPSDUHGZLWKWKHLU
UHVSHFWLYHEURWKHUV'DWDREWDLQHGIURP)*'DOVRLPSOLHVWKDWVRQVDQGGDXJKWHUVGRQRWKDYHHTXDODFFHVVWR
LQKHULWODQGULJKWVLQWKHVWXG\DUHD
7DEOH:RPHQ$FTXLVLWLRQRI/DQG5LJKWVIURP0DULWDO3DUHQWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWww
)UHTXHQF\
3HUFHQW
<HV
1R
,DPQRWVXUH
7RWDO
:RPHQDFTXLUHODQGULJKWVIURPPDULWDOSDUHQW
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHGLVFORVHVRIUHVSRQGHQWVKROGWKDWZRPHQDFTXLUHODQGULJKWVIURPPDULWDOSDUHQWVZKLOH
RIUHVSRQGHQWVVD\ZRPHQGRQRWDFTXLUHODQGULJKWVIURPPDULWDOSDUHQWVRIUHVSRQGHQWVVWDWH
WKDW WKH\ DUH QRW VXUH ZKHWKHU RU QRW ZRPHQ DFTXLUH ODQG ULJKWV IURP PDULWDO SDUHQWV +RZHYHU WKH ODQG
DFTXLVLWLRQIURPPDULWDOSDUHQWLVVXEMHFWWRDEXVHE\KXVEDQGVDQGIDPLO\RIKXVEDQGZKRWUDGLWLRQDOO\WHQGWR
FRQVLGHUODQGDVSDWHUQDOSURSHUW\
7DEOH:RPHQ$FTXLVLWLRQRI/DQG5LJKWVIURP1DWXUDO3DUHQWV
:RPHQDFTXLUHODQGULJKWVIURPQDWXUDOSDUHQWV
)UHTXHQF\
3HUFHQW
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
7DEOH GLVFORVHV RI UHVSRQGHQWV KHOG WKDW ZRPHQ DFTXLUH ODQG ULJKWV IURP QDWXUDO SDUHQWV ZKLOH
RIUHVSRQGHQWVQRWLI\ZRPHQGRQRWDFTXLUHODQGULJKWVIURPQDWXUDOSDUHQWV7KLVLPSOLHVWKDWPDUULDJH
LVWKHGRPLQDQWPHDQVRIDFTXLVLWLRQRIODQGULJKWVIRUZRPHQ
7DEOH*LIWDVPHDQVRIDFTXLVLWLRQRIODQGULJKWV
&DQ/DQG%H*LIWGXULQJ0DUULDJH" )UHTXHQF\
3HUFHQW
&XPXODWLYH3HUFHQW
<HV
1R
7RWDO
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwx
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH LPSOLHV RI UHVSRQGHQWV DJUHH WKDW ODQG FDQ EH JLIW GXULQJ PDUULDJH ZKLOH RI
UHVSRQGHQWVKROGWKDWODQGFDQQRWEHJLIWGXULQJPDUULDJH+RZHYHUWKH)*'LPSOLHVODQGJLIWFRQWUDFWVDUH
PDGHRUDOO\DQGVXFKODQGJLIWFRQWUDFWVPDGHE\IDPLO\RIKXVEDQGZRXOGEHLQYDOLGDWHGRQWKHGLYRUFHRI
PDUULDJHRUGHDWKRIKXVEDQG6RZRPHQKDYHOHVVDFFHVVWRODQGULJKWV
7DEOH:KDWLVWKHH[WHQWRIZRPHQDFFHVVWRODQGULJKWVDFTXLUHGE\JLIW
)UHTXHQF\
3HUFHQW
&XPXODWLYH3HUFHQW
+LJK
/RZ
YHU\ORZ
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$OWKRXJK WKH GDWD REWDLQHG IURP WKH UHVSRQGHQWV UHYHDO WKDW ODQG FDQ EH JLIW GXULQJ PDUULDJH WDEOH LPSOLHVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIODQGULJKWVDFTXLUHGE\JLIWLVORZZKLOHRQO\RI
UHVSRQGHQWVVD\WKHH[WHQWRIODQGULJKWVDFTXLUHGE\JLIWLVKLJK
7DEOH:LGRZHGZRPDQPDUULHVIDPLO\RIKXVEDQGWRUHWDLQODQGULJKWV
ZLGRZHGZRPDQPDUULHVIDPLO\RIKXVEDQGWRUHWDLQODQGULJKWV )UHTXHQF\
3HUFHQW
<HV
1R
1RWVXUH
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHLPSOLHVRIUHVSRQGHQWVKROGWKDW ZLGRZHGZRPDQPDUULHVIDPLO\RIKXVEDQGWRUHWDLQ
ODQGULJKWVZKHUHDVRIUHVSRQGHQWVKROGWKDW ZLGRZHGZRPHQGRQRWPDUU\IDPLO\RIKXVEDQGWRUHWDLQ
ODQGULJKWVRIUHVSRQGHQWVDUHQRWVXUHZKHWKHURUQRWZLGRZHGZRPDQPDUU\IDPLO\RIKXVEDQGWR
UHWDLQODQGULJKWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwy
7DEOH:LGRZHGZRPHQPDUULDJHRXWVLGHUHODWLYHVRIKXVEDQGDQGLWVLPSDFWRQZRPHQDFFHVVWR
ODQGULJKWV
:LGRZHG ZRPHQ PDUULDJH RXWVLGH UHODWLYHV RI KXVEDQG UHGXFHV KHU )UHTXHQF\
ODQGULJKWV
3HUFHQW
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
:LWK UHJDUG WR WKH QH[XV RI ZLGRZHG ZRPHQ PDUULDJH DQG ZRPHQ DFFHVV WR ODQG ULJKWV WDEOH LPSOLHV
RI UHVSRQGHQWV GLVFORVH WKDW ZLGRZHG ZRPDQ PDUULDJH RXWVLGH UHODWLYHV RI KXVEDQG UHGXFHV KHU ODQG
ULJKWVZKLOHRIUHVSRQGHQWVRSSRVHVWKHYLHZWKDWZLGRZHGZRPDQPDUULDJHRXWVLGHUHODWLYHVRIKXVEDQG
UHGXFHVKHUODQGULJKWV
ͶǤͶ ƒ –‘”• ‹†‡”‹‰‘‡ ‡••–‘ƒ†‹‰Š–•
7DEOH:KDWDUH)DFWRUVKLQGHULQJZRPHQDFFHVVWRODQG5LJKWV"
)DFWRUVKLQGHULQJZRPHQDFFHVVWRODQG5LJKWV
)UHTXHQF\ 3HUFHQW
9DOLG3HUFHQW
7UDGLWLRQDOFXVWRP
UHOXFWDQFHRIH[HFXWLYH
OHVVDZDUHQHVV
HFRQRPLFGHSHQGHQFH
$OORIDERYHIDFWRUV
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
7DEOHUHYHDOVWKDWUHVSRQGHQWV UHVSRQGHGDOOIDFWRUVLQFOXGHGLQWKHWDEOHHTXDOO\KLQGHUV
ZRPHQ DFFHVV WR ODQG ULJKWV &RQVLGHULQJ KLHUDUFK\ RI IDFWRUV DIIHFWLQJ ZRPHQ DFFHVV WR ODQG ULJKWV UHVSRQGHQWV RIUHVSRQGHQWVKHOGODFNRIDZDUHQHVVLVWKHILUVWPDMRUIDFWRUKLQGHULQJZRPHQDFFHVVWR
ODQGULJKWVIROORZHGE\WUDGLWLRQDOFXVWRPUHVSRQGHQWV 7DEOHVKRZVWKDWUHVSRQGHQWV KHOG
WKDW HFRQRPLF GHSHQGHQFH RI ZRPHQ LV WKLUG PDLQ IDFWRU KLQGHULQJ ZRPHQ DFFHVV WR ODQG ULJKWV ZKLOH RQH
UHVSRQGHQW KROGVUHOXFWDQFHRIH[HFXWLYH LVDQRWKHUWKDWREVWUXFWVZRPHQDFFHVVWRODQGULJKWV)*'
ZLWK ZRPHQ LQ VWXG\ DUHD FRQILUPV WKDW DOWKRXJK DOO IDFWRUV OLVWHG LQ WKH WDEOH FRQWULEXWHG IRU KLQGUDQFH RI
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWwz
ZRPHQ DFFHVV WR ODQG ULJKWV ODFN RI DZDUHQHVV WUDGLWLRQDO FXVWRP UHJDUGLQJ ODQG KROGLQJ DQG HFRQRPLF
GHSHQGHQFHRIZRPHQDUHWKHPDLQIDFWRUVWKDWREVWUXFWZRPHQDFFHVVWRODQGULJKWV)XUWKHUPRUH)*'ZLWK
ZRPHQGLVFORVHVPDLQIDFWRUVWKDWDIIHFWXQHTXDOGLVWULEXWLRQRIODQGEHWZHHQPHQDQGZRPHQLQFOXGHPDOH
GRPLQDWLRQ FXVWRPDU\ ODZ GHSHQGHQF\ RI ZRPHQ RQ PHQ ODFN RI ILQDQFLDO UHVRXUFH XQZLOOLQJQHVV RI
JRYHUQPHQWRIILFLDOVODFNRIDFFHVVWROHJDODLGVHUYLFHDQGSROLF\SUREOHPV7KHGDWDREWDLQHGIURPWKHVDPH
IRFXV JURXS GLVFXVVLRQV ZLWK UXUDO ZRPHQ LQ IRXU .HEHOHV DOVR UHYHDO WUDGLWLRQDO GLYRUFH SUDFWLFHV KLQGHU
ZRPHQ¶VULJKWVWRSURWHFWPDULWDOSURSHUW\LQFOXGLQJODQGULJKWV
2QWKHRWKHUKDQGLQWHUYLHZZLWKIRFXVJURXSGLVFXVVLRQUHIOHFWVWKDWGLIIHUHQWIDFWRUVFRQWULEXWHGIRUXQHTXDO
GLVWULEXWLRQRIODQGULJKWVEHWZHHQPHQDQGZRPHQ7KHVHDUHJHQGHULPEDODQFHDQGJHQGHUGLVFULPLQDWLRQ
PDOHGRPLQDWLRQHWF%XWLQWHUYLHZZLWKZRPHQDIIDLUVRIILFHLQGLFDWHVWKDWVRFLHWDODWWLWXGHDOVRXQFKDQJHG
WRZDUGVZRPHQDFFHVVWRODQGULJKWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWw{
7DEOH/DQG+ROGLQJ&HUWLILFDWHDQG:RPHQ$FFHVVWR/DQG5LJKWV
)UHTXHQF\
3HUFHQW
9DOLG3HUFHQW
<HV
1R
7RWDO
-RLQWFHUWLILFDWHLPSURYHZRPHQDFFHVVWRODQGULJKWV
6RXUFH$XWKRUV¶)LHOG6XUYH\
7DEOHUHYHDOVUHVSRQGHQWV KROGWKDW-RLQWFHUWLILFDWHRIVSRXVHVLPSURYHVZRPHQDFFHVVWRODQG
ULJKWV ZKLOH UHVSRQGHQWV KROG WKDW -RLQW FHUWLILFDWH RI VSRXVHV GRHV QRW LPSURYH ZRPHQ DFFHVV WR
ODQGULJKWV
7DEOH,PSDFWRI/DQGKROGLQJ&HUWLILFDWHLQH[HUFLVLQJODQGULJKWV
ODQGKROGLQJFHUWLILFDWHJXDUDQWHHZRPHQDFFHVVWRODQG )UHTXHQF\
3HUFHQW
9DOLG
3HUFHQW
5LJKW
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
7DEOHVKRZVWKDWRIUHVSRQGHQWVKROGWKDWODQGKROGLQJFHUWLILFDWHJXDUDQWHHZRPHQDFFHVVWRODQG
5LJKWZKLOHRIUHVSRQGHQWVKROGWKDWODQGKROGLQJFHUWLILFDWHGRHVQRWJXDUDQWHHZRPHQDFFHVVWRODQG
5LJKWV
ͶǤͷǤŠ‡”‡†•‘ˆ‘‡ ‡••–‘ƒ†‹‰Š–•ƒ† ’Ž‡‡–ƒ–‹‘‘ˆ™‘‡Žƒ†
”‹‰Š–•‹–Š‡•–—†›ƒ”‡ƒ
ͶǤͷǤͳǤ”‡†•‘ˆ‘‡ ‡••–‘ƒ†‹‰Š–•‹–Š‡–—†›”‡ƒ
7KHREMHFWLYHRIWKLVVHFWLRQLVWRH[DPLQHFXUUHQWODQGLPSOHPHQWDWLRQSUDFWLFHLQOLJKWZLWKWKH611356¶V
ODQGODZVUHJDUGLQJZRPHQ¶VDFFHVVWRODQGULJKWV7REHJLQZLWKWKHODZWKH611356¶VUHJLRQDOJRYHUQPHQW
KDV WDNHQ WLPH WR WUDQVODWH IHGHUDO ODQG SROLFLHV OHJLVODWLRQV DQG ODZV ZKLFK VHHP DGHTXDWH WR SURWHFW
ZRPHQ¶VDFFHVVWRODQGULJKWVLQWRLPSOHPHQWDEOHSDFNDJHVRISURJUDPVDQGSURMHFWVIRUUHJLRQDODSSOLFDWLRQ
DQGLVVXHVLQWRPDLQVWUHDPGHYHORSPHQWSODQVLQFOXGLQJZRPHQ¶VHTXDODFFHVVWRODQGULJKWV+RZHYHUGDWD
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxr
REWDLQHGIURPNH\LQIRUPDQWVLQGLFDWHVWKHUHJLRQKDVVRPHWLPHVIDLOHGLQUHJLRQDOL]LQJWKHZRPHQ¶VSROLF\
RQWKHLUHTXDODFFHVVWR ODQGULJKWV)RUH[DPSOHWKHUHLVQRODQGULJKWV UHDGMXVWPHQWDQGODQGUHGLVWULEXWLRQ
SURJUDPV DQG VWUDWHJLHV WKDW WDUJHW ZRPHQ LQ WKH VWXG\ DUHD 6SHFLILFDOO\ FRPLQJ WR VWXG\ DUHD WKHUH LV
YLRODWLRQ RI ZRPHQ¶V HTXDO DFFHVV WR ODQG ULJKWV ZLWK PHQ GXH WR IDFWRUV GLVFXVVHG DERYH LQ VHFWLRQ &RQWUDU\WRWKLV)*'ZLWKUHVSRQGHQWV¶VKRZVWKHUHDUHZHDNODQGULJKWVHQIRUFHPHQWLQVWLWXWLRQVLQZRUHGD
DQG NHEHOHV XQGHU FRQVLGHUDWLRQ :RUHGD ODQG DGPLQLVWUDWLRQ FRPPLWWHH KDV OHVV FRPPLWPHQW WR DGGUHVV
UHPRWH NHEHOHV EHFDXVH RI ODFN RI IDFLOLW\ QDUURZ QDWLRQDOLVP WRZDUG ZRPHQ DQG LQDFFHVVLELOLW\ RI
WUDQVSRUWDWLRQ(YHQFRXUWMXGJPHQWVRQDFFHVVWRODQGULJKWVQRWHQIRUFHDEOHGXHWREULEHJLYHQE\KXVEDQG
DQG GLVFULPLQDWRU\ FXOWXUDO DUELWUDWLRQ ,Q FDVH EHWZHHQ /HQMLVR *HOHWR DQG *HQDOH %XQH DOWKRXJK FRXUW
GHFLGHG IRU GLYLVLRQ RI ODQG FRQIHUULQJ ODQG ULJKWV WR ZRPDQ *HQDOH RYHU RQH KHFWDUH WKH ZRPDQ DQG KHU
WKUHHFKLOGUHQZHUHHYLFWHGDIWHUGLVVROXWLRQRIPDUULDJH E\GLYRUFHEHFDXVHKXVEDQGDQGKLVFKLOGUHQIURP
DQRWKHU ZLIH REMHFWHG WKH HQIRUFHPHQW RI MXGJPHQW E\ IRUFH 7KXV *HQDOH %XQH DQG KHU WKUHH FKLOGUHQ
UHPDLQHGZLWKRXWODQGDQGKRPHOHDYLQJWKHSODFHWRZDUG*HQDOH%XQHIDPLO\7KHODQGLVVWLOOFRQWUROOHGE\
/HQMLVR *HOHWR DQG KLV FKLOGUHQ IURP DQRWKHU ZLIH REMHFWHG &RQVHTXHQWO\ GDWD REWDLQHG IURP VWXG\ DUHD
LQGLFDWHGWKDWWKHLUHTXDOULJKWVWRODQGZHUHQRWLPSOHPHQWHGLQSUDFWLFHDQGWKDWWKHUHLVQRLPSRUWDQWFKDQJH
FXUUHQWO\WRRDOWKRXJKLQIRUPDWLRQREWDLQHGIURPIRFXVJURXSGLVFXVVLRQZLWKUXUDOZRPHQRQWKHFXUUHQWODQG
SROLF\UHIOHFWVKRSHIXOQHVVRQWKHLUVLGHZD\V
ͶǤͷǤʹǤŠ‡ƒŽ›œ‹‰–Š‡ƒ––‡”‘ˆˆ‘” ‡‡–‘ˆ™‘‡ƒ†‹‰Š–•‹–Š‡–—†›”‡ƒ
7DEOH1HZ611356ODQGODZLPSURYHGWDQJLEOHZRPHQDFFHVVWRODQGULJKWV
(QDFWPHQW RI 1HZ 611356 ODQG ODZ LPSURYHG WDQJLEOH ZRPHQ DFFHVV WR ODQG )UHTXHQF\ 3HUFHQW
ULJKWV
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH LPSOLHV RI UHVSRQGHQWV DJUHH WKDW WKH HQDFWPHQW RI QHZ 611356 ODQG ODZ LPSURYHG
WDQJLEOH ZRPHQ DFFHVV WR ODQG ULJKWV ZKHUHDV RI UHVSRQGHQWV UHVLVW WKH LGHD WKDW HQDFWPHQW RI QHZ
611356ODQGODZLPSURYHGWDQJLEOHZRPHQDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD
7DEOH6LWXDWLRQRI(QIRUFHPHQW:RPHQ/DQG5LJKWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxs
:KDWLVWKHVLWXDWLRQRIHQIRUFHPHQWRIZRPHQODQGULJKWVLQ\RXUORFDOLW\"
)UHTXHQF\
3HUFHQW
YHU\VWURQJ
6WURQJ
:HDN
YHU\ZHDN
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VRQHPD\QRWLFHIURPWDEOHRIUHVSRQGHQWVUHYHDOWKDWWKHUHLVZHDNHQIRUFHPHQWRIODQGULJKWV
ZKLOHRQO\RIUHVSRQGHQWVKROGWKDWWKHUHLVVWURQJHQIRUFHPHQWRIODQGULJKWVLQWKHVWXG\DUHD
7DEOH7KHOHYHOZRPHQDFFHVVWRODQGULJKWV
)UHTXHQF\
3HUFHQW
+LJK
0HGLXP
/RZ
YHU\ORZ
7RWDO
:KDWLVWKHOHYHOZRPHQDFFHVVWRODQGULJKWV"
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH LPSOLHV RI UHVSRQGHQWV KROG WKDW ZRPHQ KDYH ORZ OHYHO RI DFFHVV WR ODQG ULJKWV ZKLOH
RIUHVSRQGHQWVKDYHKLJKOHYHORIDFFHVVWRODQGULJKWV7KHUHVWRIUHVSRQGHQWVKDYHPHGLXPOHYHO
RIDFFHVVWRODQGULJKWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxt
7DEOH:RPHQ,QWHUHVWWRSD\IRUQHZODQGUHJLVWUDWLRQDQGFHUWLILFDWLRQ
:RPDQ KDYH LQWHUHVW WR SD\ IRU QHZ ODQG UHJLVWUDWLRQ DQG )UHTXHQF\ 3HUFHQW
FHUWLILFDWLRQSURFHVV
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH UHYHDOV RI UHVSRQGHQWV GR QRW KDYH LQWHUHVW WR SD\ IRU QHZ ODQG UHJLVWUDWLRQ DQG
FHUWLILFDWLRQZKLOHRQO\KDYHLQWHUHVWWRSD\IRUQHZODQGUHJLVWUDWLRQDQGFHUWLILFDWLRQ
7DEOH7UHQGRI:RPHQ5HPRYDOIURPWKHLUODQG5LJKWV
:KDWLVWKHVLWXDWLRQRIZRPHQUHPRYDOIURPWKHLUODQG )UHTXHQF\
5LJKWV"
3HUFHQW
+LJK
0HGLXP
/RZ
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHVKRZVWKRXJKRIUHVSRQGHQWVVWDWHWKDWWKHUHLVORZOHYHORIZRPHQUHPRYDOIURPWKHLU
ODQG ULJKWV VWLOO WKHUH LV SUHYDOHQFH RI VLJQLILFDQW ZRPHQ UHPRYDO IURP WKHLU ODQG ULJKWV 7KDW LV RI
UHVSRQGHQWV KROG WKHUH LV KLJK OHYHO RI ZRPHQ UHPRYDO IURP WKHLU ODQG ULJKWV ZKHUHDV RI UHVSRQGHQWV
DJUHHWKDWWKHUHLVSUHYDOHQFHRIPHGLXPZRPHQUHPRYDOIURPODQGULJKWVGXHWRGLIIHUHQWIDFWRUV&RQVLVWHQW
ZLWKWKLVWKHGDWDREWDLQHGIURPIRFXVJURXSGLVFXVVLRQ)*'LPSOLHVWKDWWKHUHLVVLJQLILFDQWZRPHQUHPRYDO
IURPWKHLUODQGULJKWV7KLVUHPRYDORIZRPHQIURPODQGULJKWVLVEHLQJUHGXFHGEHFDXVHFRXUWLQWHUYHQHVWR
UHFWLI\ LQMXVWLFH FDXVHG WR ZRPHQ DFFHVV WR ODQG ULJKWV +RZHYHU WKH GDWD DFTXLUHG IURP )*' LPSOLHV
FXUUHQWO\WKHSUHYDOHQFHRIZRPHQUHPRYDOIURPWKHLUODQGULJKWLVGLPLQLVKLQJ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxu
7DEOH:RPHQORVVRIODQGULJKWVDIWHUGLYRUFHRIPDUULDJH
)UHTXHQF\
3HUFHQW
<HV
1R
1RWVXUH
7RWDO
'RZRPHQORVHODQGULJKWVDIWHUGLYRUFHRIPDUULDJH"
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH VKRZV RI UHVSRQGHQWV GLVFORVH ZRPHQ ORVH ODQG ULJKWV DIWHU PDUULDJH GXH WR IDFWRUV
PHQWLRQHGLQVHFWLRQZKLOHKROGRSSRVLWHYLHZ)*'FRQILUPVWKHUHDUHVRPHZRPHQZKRORVHODQG
ULJKWVDIWHUGLYRUFHRIPDUULDJH
ͶǤͷǤ͵Ǥ ’ƒ –‘ˆ—•–‘ƒ”›ƒ™‘‘‡ ‡••–‘ƒ†‹‰Š–•
7DEOHZKHWKHURUQRWFXVWRPDU\ODZUHJXODWHVODQGULJKWV
)UHTXHQF\
3HUFHQW
<HV
1R
7RWDO
7KHUHLVFXVWRPDU\ODZUHJXODWLQJODQGULJKWV
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH LQGLFDWHV RI UHVSRQGHQWV KROG FXVWRPDU\ ODZ UHJXODWHV ODQG ULJKWV ZKLOH RI
UHVSRQGHQWV REMHFW WKH YLHZ WKDW FXVWRPDU\ ODZ UHJXODWHV ODQG ULJKWV 'DWD IURP IRFXV JURXS GLVFXVVLRQ
FRQILUPVWKDWWKHUHLVLQIOXHQFHRIFXVWRPDU\ODZVZKLFKIDYRUVPHQGDXJKWHUVEHFDXVHIDPLO\SHUFHLYHVWKDW
PDOHVKRXOGJHWPRUHODQG
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxv
7DEOH&XVWRPDU\/DZ'HQLHV:RPHQ$FFHVVWR/DQG5LJKWV
FXVWRPDU\ODZGHQLHVDWOHDVWUHGXFHVZRPHQDFFHVVWRODQGULJKWV
)UHTXHQF\
3HUFHQW
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
5HJDUGLQJ DGYHUVH HIIHFW RI FXVWRPDU\ ODZ RQ ZRPHQ DFFHVV WR ODQG ULJKWV 7DEOH VKRZV RI
UHVSRQGHQWV DJUHHG WKDW FXVWRPDU\ ODZ GHQLHV ZRPHQ DFFHVV WR ODQG ULJKWV ZKLOH RI UHVSRQGHQWV
GLVDJUHHG WR WKH VWDWHPHQW FXVWRPDU\ ODZ GHQLHV ZRPHQ DFFHVV WR ODQG ULJKWV 'DWD IURP IRFXV JURXS
GLVFXVVLRQDOVRVKRZVWKDWFXVWRPDU\ODZUHGXFHVZRPHQDFFHVVWRODQGULJKWV
7DEOH:RPHQ/DQGKROGLQJLQ7KHLU2ZQ1DPHLQWKH6WXG\$UHD
'R\RXKDYHODQGULJKWUHJLVWHUHGLQ\RXUQDPH"
)UHTXHQF\
3HUFHQW
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
&XVWRPDU\ODZSURWHFWVZRPDQDFFHVVWRODQGULJKWVEHWWHUWKDQVWDWXWRU\ODZ
)UHTXHQF\ 3HUFHQW
9DOLG3HUFHQW
9DOLG
<HV
1R
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$V WDEOH VKRZV RI UHVSRQGHQWV KROG WKDW &XVWRPDU\ ODZ SURWHFWV ZRPDQ DFFHVV WR ODQG ULJKWV
EHWWHUWKDQVWDWXWRU\ODZZKLOHKROGWKDW&XVWRPDU\ODZGRHVQRWSURWHFWVZRPDQ DFFHVVWR ODQGULJKWV
EHWWHU WKDQ VWDWXWRU\ ODZ 0DMRULW\ RI SDUWLFLSDQWV RI IRFXV JURXS GLVFXVVLRQ DOVR KROG WKDW FXVWRPDU\
ODZGRHVQRWSURWHFWVZRPDQDFFHVVWRODQGULJKWVEHWWHUWKDQVWDWHODZ
7DEOH([WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVV9HUVXVUHVLGHQFHRIUHVSRQGHQWV
&URVV7DEXODWLRQ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxw
:KDWLVWKHH[WHQWRIODQGGLVSXWHHQGLQJZLWK UHVLGHQFHRIUHVSRQGHQWV
ZRPHQ VXFFHVV"
5XUDO 8UEDQ 7RWDO 3HUFHQW
+LJK
0HGLXP
/RZ
YHU\ORZ
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHLQGLFDWHVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVV
LVKLJKZKHUHDVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVVLVORZ
UHVSRQGHQWV KROG WKDW WKH H[WHQW RI ODQG GLVSXWH HQGLQJ ZLWK ZRPHQ VXFFHVV LV PHGLXP :KHQ ZH
FRPSDUHUXUDODQGXUEDQUHVLGHQWVZKRVHWKHH[WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVVLVORZRI
UHVSRQGHQWV LV IURP UXUDO DUHD ZKLOH RQO\ RI UHVSRQGHQWV DUH IURP XUEDQ DUHD 7KH GDWD IURP IRFXV
JURXS GLVFXVVLRQ VKRZV WKHUH LV KLJK H[WHQW RI ODQG GLVSXWH HQGLQJ ZLWK ZRPHQ VXFFHVV LQ XUEDQ DUHDV
FRPSDUHGZLWKUXUDODUHDGXHWRZRPHQPRUHDZDUHQHVVDERXWWKHLUODQGULJKWV
7DEOH7KHH[WHQWRIZRPHQSRZHUWRHQIRUFHODQG5LJKWV 9HUVXV UHVLGHQFHRI
UHVSRQGHQWV&URVVWDEXODWLRQ
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxx
:KDW LV H[WHQW RI ZRPHQ SRZHU UHVLGHQFHRIUHVSRQGHQWV
WRHQIRUFHODQG5LJKWV"
UXUDO
XUEDQ
9HU\
+LJK
7RWDO
0HGLXP /RZ
9HU\
/RZ
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHLQGLFDWHVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIZRPHQSRZHUWRHQIRUFHODQG5LJKWLV
ORZZKHUHDVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIZRPHQSRZHUWRHQIRUFHODQG5LJKWLVKLJKZKLOH
UHVSRQGHQWV KROG WKDW WKH H[WHQW RI ODQG GLVSXWH HQGLQJ ZLWK ZRPHQ VXFFHVV LV PHGLXP :KHQ ZH
FRPSDUH UXUDO DQG XUEDQ ZRPHQ UHVLGHQWV ZKRVH WKH H[WHQW SRZHU WR HQIRUFH ODQG 5LJKW LV ORZ RI
UHVSRQGHQWV LV IURP UXUDO DUHD ZKLOH RQO\ RI UHVSRQGHQWV DUH IURP XUEDQ DUHD 7KH GDWD IURP IRFXV
JURXSGLVFXVVLRQVKRZVWKDWUXUDOZRPHQKDYHOHVVH[WHQWSRZHUWRHQIRUFHODQGULJKWLQUHODWLYHZLWKXUEDQ
ZRPHQ
7DEOH :RPDQ KDYH DFFHVV WR OHJDO DLG VHUYLFH 9HUVXV UHVLGHQFH RI UHVSRQGHQWV &URVV
7DEXODWLRQ
:RPHQKDYHDFFHVVWROHJDODLGVHUYLFH
UHVLGHQFHRIUHVSRQGHQWV
7RWDO
5XUDO
XUEDQ
$JUHH
1HXWUDO
'LVDJUHH
6WURQJO\
'LVDJUHH
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxy
7DEOH LQGLFDWHV WKDW RI UHVSRQGHQWV KROG WKDW ZRPHQ GR QRW KDYH DFFHVV WR OHJDO DLG
VHUYLFH ZKLOH RI UHVSRQGHQWV DJUHH ZLWK YLHZ WKDW ZRPHQ KDYH DFFHVV WR OHJDO DLG VHUYLFH
ZKHUHDVRIUHVSRQGHQWVDUHQRWVXUHZKHWKHURUQRWZRPHQKDYHDFFHVVWROHJDODLGVHUYLFH
7KH VDPH WDEOH VKRZV WKDW ODFN RI ZRPHQ DFFHVV OHJDO DLG VHUYLFH LV PRUH SUHYDOHQW LQ UXUDO DUHD
RI UXUDO UHVSRQGHQWV KROG WKDW ZRPHQ KDYH GR QRW KDYH DFFHVV OHJDO DLG VHUYLFH WKDQ XUEDQ
DUHD ZKHUHRQO\ RIXUEDQUHVSRQGHQWV JUDVSWKDWZRPHQKDYHGRQRWKDYHDFFHVVOHJDODLG
VHUYLFH
7DEOH:KDWLVWKHVLWXDWLRQRIHQIRUFHPHQWRIZRPHQODQGULJKWVLQ\RXUORFDOLW\9HUVXV
UHVLGHQFHRIUHVSRQGHQWV&URVVWDEXODWLRQ
:KDW LV WKH VLWXDWLRQ RI IDYRUDEOH HQYLURQPHQW IRU HQIRUFHPHQW RI ZRPHQ UHVLGHQFHRIUHVSRQGHQWV
7RWDO ODQGULJKWVLQ\RXUORFDOLW\"
5XUDO XUED Q
YHU\VWURQJ
6WURQJ
:HDN
YHU\ZHDN
7RWDO
6RXUFH$XWKRUV¶)LHOG6XUYH\
$VWDEOHVKRZVRIUHVSRQGHQWVVD\WKDWZRPHQKDYHZHDNHUPDQQHURIHQIRUFHPHQWRIODQGULJKWV
UHVSRQGHQWV IURP VWXG\ DUHD KROG WKH\ KDYH ZHDNHU IDYRUDEOH VLWXDWLRQ IRU HQIRUFHPHQW RI ODQG ULJKWV
ZKLOHRIXUEDQUHVSRQGHQWVVDLGWKH\KDYHZHDNHUVLWXDWLRQIRUHQIRUFHPHQWRIODQGULJKWV7KLVLPSOLHV
WKHUHLVPRUHIDYRUDEOHHQYLURQPHQWIRUHQIRUFHPHQWRIODQGULJKWVLQXUEDQWKDQLQ(WKLRSLD
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWxz
7DEOH ([WHQW RI /DQG 'LVSXWH (QGLQJ :LWK :RPHQ 6XFFHVV 9HUVXV (GXFDWLRQ RI
5HVSRQGHQWV&URVV7DEXODWLRQ
([WHQW RI ODQG GLVSXWH HQGLQJ (GXFDWLRQRI5HVSRQGHQWV
ZLWKZRPHQVXFFHVV
,OOLWHUDWH 3ULPDU\ 6HFRQGDU\ 'LSORPD GHJUHH
+LJK
7RWDO
7RWDO
0HGLXP /RZ
YHU\
ORZ
7DEOHLPSOLHVGLVSXWHHQGLQJZLWKZRPHQVXFFHVVKDVSRVLWLYHUHODWLRQVKLSZLWKHGXFDWLRQRIVWDWXV$V
OLWHUDF\ RI ZRPHQ LQFUHDVHV IURP LOOLWHUDF\ WR SULPDU\ DQG VHFRQGDU\ HGXFDWLRQ WKH H[WHQW RI ODQG ULJKWV¶
GLVSXWHHQGLQJZLWKZRPHQVXFFHVVLQFUHDVHV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWx{
Šƒ’–‡” ‹˜‡
ͷǤ‘ Ž—•‹‘ƒ†‡ ‘‡†ƒ–‹‘
ͷǤͳǤ‘ Ž—•‹‘
$IWHUDQDO\VLVRIGDWDFROOHFWHGIURPVWXG\DUHDDXWKRUVRIWKLVZRUNFRPHDFURVVWKHIROORZLQJPDLQILQGLQJV
¾ $OWKRXJK(WKLRSLDQDQG611356ODQGODZUHFRJQL]HZRPHQHTXDODFFHVVWRODQGULJKWVLPSOHPHQWLQJ
PHFKDQLVPVDUHHLWKHUPLVVLQJRUZHDNHURUWUDGLWLRQVDQGSUDFWLFHVWKDWSHUSHWXDWHJHQGHULQHTXDOLWLHV
DUHVWLOOLQSODFH
¾ 7UDGLWLRQDOO\ WKH ODQG SRVVHVVLRQ V\VWHP LQ 6RXWKHUQ (WKLRSLD PD\ EH FKDUDFWHUL]HG E\ SDWULOLQHDO
LQKHULWDQFH 6RQVLQKHULWLQJODQGIURPWKHLUIDWKHUVZKLOHGDXJKWHUVRQO\LQKHULWODQGLIWKH\KDYHQR
EURWKHUV DQGYLULORFDOUHVLGHQFH XSRQPDUULDJHWKHZRPDQPRYHVWRWKHKXVEDQG¶VKRPHSODFHWROLYH
ZLWKKLPWKHUH ¾ )XUWKHUJLUOVVWLOOKDYHWRJRWRDKXVEDQGWKDWWKHLUFODQRUIDPLO\KDVLGHQWLILHGIRUWKHPPHDQLQJWKDW
WKH\ DIWHU PDUULDJH PRYH WR WKH KRPH RI WKHLU QHZ KXVEDQG DQG LQKHULW QR ODQG IURP WKHLU SDUHQWV
7KXV ZKHUH ZRPHQ GR QRW HQMR\ DQ HTXDO VRFLDO VWDWXV OHJLVODWLRQ UHPDLQV GHDG OHWWHU 7KDW LV
SUDFWLFDOO\FXVWRPDU\ODQGULJKWVLQKHULWDQFHODZSUHYDLOVRYHUFRQVWLWXWLRQDORUVWDWXWRU\ODZGHQ\LQJ
ZRPHQ DFFHVV WR ODQG ULJKWV RIWHQ WR WKH GHWULPHQW RI ZRPHQ $GGLWLRQDOO\ LQ VHYHUDO FRQWH[WV RI
VWXG\DUHDZRPHQORVHWKHULJKWVDFTXLUHGRQWKHODQGDQGQDWXUDOUHVRXUFHVXVHGIRUWKHLUOLYHOLKRRGV
DV D FRQVHTXHQFH RI WKHLU KXVEDQGV¶ GHDWK LQ FDVH RI VHSDUDWLRQ RU GLYRUFH RU ZKHQ IRUFHG
GLVSODFHPHQWVRUPLJUDWLRQVWDNHSODFH
¾ /HVVZRPHQLQYROYHPHQWLQODQGULJKWSROLFLHVDQGGLVFXVVLRQVPHHWLQJV
¾ 'DWD FROOHFWHG IURP VWXG\ DUHD VKRZV RI UHVSRQGHQWV KHOG WKDW ZRPHQ KDYH ORZ SRZHU WR
HQIRUFHODQGULJKWVZKLOHRIUHVSRQGHQWVKROGWKDWZRPHQKDYHKLJKSRZHUWRHQIRUFHODQGULJKWV
LHZRPHQGRQRWKDYHHTXDODFFHVVWRODQGULJKWVRUZRPHQKDYHOHVVH[WHQWRIODQGULJKWV
¾ 0DMRULW\ PRUHWKDQ RIUHVSRQGHQWVKROGVWKDWZRPHQGRQRWKDYHDFFHVVWROHJDODLGVHUYLFH
¾ 7KHRIUHVSRQGHQWVKROGVWKHH[WHQWRIODQGGLVSXWHVHQGLQJZLWKZRPHQVXFFHVVLVORZZKLOH
RIUHVSRQGHQWVKROGWKDW WKHH[WHQWRIODQGGLVSXWHHQGLQJZLWKZRPHQVXFFHVVLVKLJKZKHUHDV
RIUHVSRQGHQWVVD\WKHH[WHQWRIODQGGLVSXWHVHQGLQJZLWKZRPHQVXFFHVVLVPHGLXP
¾ 7KH RI WKH UHVSRQGHQWV KROG WKDW ZRPHQ GR QRW DFTXLUH ODQG ULJKWV EHIRUH PDUULDJH ZKLOH RQO\
RIUHVSRQGHQWVKROGWKDWZRPHQJHWODQGULJKWVEHIRUHPDUULDJH
¾ 7KHRIUHVSRQGHQWVKROGWKDWVRQVDQGGDXJKWHUVGRQRWKDYHHTXDODFFHVVWRLQKHULWODQGULJKWV
ZKLOHRIUHVSRQGHQWVKROGWKDWVRQVDQGGDXJKWHUVKDYHHTXDODFFHVVWRLQKHULWODQGULJKWVLQWKH
VWXG\DUHD
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyr
¾ RI UHVSRQGHQWV KROG WKDW ZRPHQ DFTXLUH ODQG ULJKWV IURP PDULWDO SDUHQWV ZKLOH RI
UHVSRQGHQWVVD\ZRPHQGRQRWDFTXLUHODQGULJKWVIURPPDULWDOSDUHQWVWKRXJKRIUHVSRQGHQWV
DUH QRW VXUH ZKHWKHU RU QRW WKH ZRPHQ DFTXLUH ODQG ULJKWV IURP PDULWDO SDUHQWV LH RI
UHVSRQGHQWV KHOG WKDW ZRPHQ DFTXLUH ODQG ULJKWV IURP QDWXUDO SDUHQWV ZKLOH RI UHVSRQGHQWV
QRWLI\ZRPHQGRQRWDFTXLUHODQGULJKWVIURPQDWXUDOSDUHQWV
¾ 0DUULDJHLVGRPLQDQWPHDQVRIDFTXLVLWLRQRIODQGULJKWVIRULQVWDQFHRIUHVSRQGHQWVKROGWKDW
ZLGRZHGZRPDQPDUULHVIDPLO\RIKXVEDQGWRUHWDLQODQGULJKWVZKHUHDVRIUHVSRQGHQWV KROG
WKDW ZLGRZHGZRPHQGRQRWPDUU\IDPLO\RIKXVEDQGWRUHWDLQODQGULJKWV
¾ RIUHVSRQGHQWVGLVFORVHWKDWZLGRZHGZRPDQPDUULDJHRXWVLGHUHODWLYHVRIKXVEDQGUHGXFHVKHU
ODQGULJKWV
¾ RI UHVSRQGHQWV DUJXH WKDW IDFWRUV KLQGHULQJ ZRPHQ DFFHVV WR ODQG 5LJKWV LQFOXGH WUDGLWLRQDO
FXVWRPUHOXFWDQFHRIH[HFXWLYHOHVVDZDUHQHVVRIZRPHQDQGHFRQRPLFGHSHQGHQF\RIZRPHQDOEHLW
PDMRUIDFWRUKLQGHULQJZRPHQDFFHVVWRODQGULJKWVLVOHVVDZDUHQHVV DFFRPSDQLHGE\FXVWRPDU\
YDOXHV )XUWKHUPRUH )*' ZLWK UHVSRQGHQWV GLVFORVHV PDLQ IDFWRUV WKDW DIIHFW XQHTXDO
GLVWULEXWLRQRIODQGEHWZHHQPHQDQGZRPHQLQFOXGHPDOHGRPLQDWLRQFXVWRPDU\ODZGHSHQGHQF\RI
ZRPHQ RQ PHQ ODFN RI ILQDQFLDO UHVRXUFH XQZLOOLQJQHVV RI JRYHUQPHQW RIILFLDOV ODFN RI DFFHVV WR
OHJDODLGVHUYLFHDQGSROLF\SUREOHPV
¾ 'DWD REWDLQHG IURP NH\ LQIRUPDQWV LQGLFDWHV WKH 611356 SDUW RI FRXQWU\ KDV VRPHWLPHV IDLOHG LQ
UHJLRQDOL]LQJ WKH ZRPHQ¶V SROLF\ RQ WKHLU HTXDO DFFHVV WR ODQG ULJKWV )RU H[DPSOH WKHUH LV QR ODQG
ULJKWVUHDGMXVWPHQWDQGODQGUHGLVWULEXWLRQSURJUDPVDQGVWUDWHJLHVWKDWWDUJHWZRPHQLQWKHVWXG\DUHD
LHWKHUHDUHZHDNODQGULJKWVHQIRUFHPHQWLQVWLWXWLRQVLQZRUHGDVDQGNHEHOHVXQGHUFRQVLGHUDWLRQ
¾ 7KH RI UHVSRQGHQWV KROG WKDW ZRPHQ KDYH ORZ OHYHO RI DFFHVV WR ODQG ULJKWV ZKLOH RI
UHVSRQGHQWVKDYHKLJKOHYHORIDFFHVVWRODQGULJKWV
¾ RI UHVSRQGHQWV GLVFORVH ZRPHQ ORVH ODQG ULJKWV DIWHU PDUULDJH GXH WR GLIIHUHQW IDFWRUV ZKLOH
KROGRSSRVLWHYLHZ
¾ 7KHRIUHVSRQGHQWVKROGFXVWRPDU\ODZUHJXODWHVODQGULJKWVZKLOHRIUHVSRQGHQWVREMHFW
WKHYLHZWKDWFXVWRPDU\ODZUHJXODWHVODQGULJKWV
¾ 5HJDUGLQJ DGYHUVH HIIHFW RI FXVWRPDU\ ODZ RQ ZRPHQ DFFHVV WR ODQG ULJKWV RI UHVSRQGHQWV
DJUHHGWKDWFXVWRPDU\ODZGHQLHVZRPHQDFFHVVWRODQGULJKWVZKLOHRIUHVSRQGHQWVGLVDJUHHGWR
WKHVWDWHPHQWFXVWRPDU\ODZGHQLHVZRPHQDFFHVVWRODQGULJKWV
¾ 7KHRIUHVSRQGHQWVKROGWKDW &XVWRPDU\ODZSURWHFWVZRPDQDFFHVVWRODQGULJKWVEHWWHUWKDQ
VWDWXWRU\ODZZKLOHKROGWKDW&XVWRPDU\ODZGRHVQRWSURWHFWZRPDQDFFHVVWRODQGULJKWVEHWWHU
WKDQVWDWXWRU\ODZ
¾ &RQVLGHULQJODQGULJKWVHQGLQJZLWKZRPHQVXFFHVVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIODQG
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWys
GLVSXWHHQGLQJZLWKZRPHQVXFFHVVLVKLJKZKHUHDVRIUHVSRQGHQWVKROGWKDWWKHH[WHQWRIODQG
GLVSXWHHQGLQJZLWKZRPHQVXFFHVVLVORZLHLQUXUDODUHDWKHH[WHQWRIZRPHQOLWLJDQWVORVLQJODQG
GLVSXWHLVKLJKHUWKDQXUEDQOLWLJDQWV
¾ 7KHH[WHQWRIZRPHQSRZHUWRHQIRUFHODQGULJKWVLQXUEDQDUHDLVKLJKHUWKDQUXUDOUHVLGHQWV
¾ /DFNRIZRPHQDFFHVVWRIUHHOHJDODLGVHUYLFHLVPRUHSUHYDOHQWLQUXUDODUHDWKDQXUEDQDUHD
¾ &RPPXQLW\ PHPEHUV LQFOXGLQJ ZRPHQ GR QRW DFFHSW GDXJKWHUV LQKHULWDQFH RI ODQG ULJKWV IURP WKHLU
IDPLO\EHFDXVHFXVWRPDU\ODQGKROGLQJUHFRJQL]HRQO\VRQVVXEVWLWXWHSDUHQWV
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyt
ͷǤʹǤ‡ ‘‡†ƒ–‹‘
7KH UHVHDUFKHUV IRUZDUG WKH IROORZLQJ JHQHUDO DQG VSHFLILF UHFRPPHQGDWLRQV ZLWK UHJDUG WR WKH SUREOHPV
UHODWHGWRZRPHQDFFHVVWR/DQGULJKWV
*HQHUDOO\WKHJRYHUQPHQWVKRXOGWDNHIXUWKHUODQGULJKWVHQIRUFHPHQWPHDVXUHVWRHQGJHQGHULQHTXDOLWLHVWKDW
SUHYDLOLQUHODWLRQZLWKZRPHQDFFHVVWRODQGULJKWV7KHIROORZLQJVSHFLILFDFWLRQVKRXOGEHWDNHQE\UHJLRQDO
DQGORFDOJRYHUQPHQWWRHQVXUHZRPHQDFFHVVWRODQGULJKWV
¾ FRPSRVLWLRQRIODQGDGPLQLVWUDWLRQ FRPPLWWHHVKRXOGZRPHQ ZRPHQVKRXOGSDUWLFLSDWHLQODQG
SROLFLHVDQGODQGGLVSXWHUHVROXWLRQV\VWHP LQERWKMXGLFLDU\DQGSULYDWHMXVWLFHUHVROXWLRQV\VWHPV ¾ 7KHUHVKRXOGEHH[WHQVLYHFDPSDLJQOHJDOHGXFDWLRQWRHQKDQFHVRFLHWDO DZDUHQHVVUHJDUGLQJ ZRPHQ
HTXDODFFHVVWRODQGULJKWVDQGDEROLVKFXVWRPDU\UXOHVOLNHGLVFULPLQDWRU\LQKHULWDQFHSUDFWLFHRURWKHU
IDFWRUVWKDWKLQGHUZRPHQGDXJKWHUVDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD
¾ *RYHUQPHQW VKRXOG H[SDQGHQKDQFH DFFHVV WR IUHH OHJDO DLG VHUYLFH EHJDQ E\ (WKLRSLDQ KLJKHU
HGXFDWLRQLQVWLWXWLRQVWRHDFKZRUHGDDQGNHEHOHDVWRROWKDWVXSSOHPHQWZRPHQHTXDODFFHVVWRODQG
ULJKWVIRUDLPRIHQKDQFLQJODQGOLWLJDWLRQHQGLQJZLWKZRPHQVXFFHVV
¾ WKHUHVKRXOGEHODQGULJKWVUHDGMXVWPHQWDQGFRPPXQDOODQGUHGLVWULEXWLRQSURJUDPVDQGVWUDWHJLHVWKDW
WDUJHWZRPHQLQWKHVWXG\DUHD
¾ 7KH61135PXVWHVWDEOLVKODQGULJKWVHQIRUFHPHQWXQLWVHDFKGLVWULFWDQGNHEHOHDGPLQLVWUDWLYHXQLWV
WR HQIRUFH ODQG ULJKWV UHFRJQL]HG E\ )'(5( &RQVWLWXWLRQVXEVLGLDU\ ODZV DQG ,QWHUQDWLRQDO KXPDQ
ULJKWFRQYHQWLRQVUDWLILHGE\(WKLRSLDLQFOXGLQJLPSOHPHQWDWLRQRIDIILUPDWLYHDFWLRQFODXVHUHFRJQL]HG
LQWKHUHJLRQDODQGQDWLRQDOFRQVWLWXWLRQV
¾ 7KHUH PXVW EH ODQG OHJLVODWLRQ DQG ODQG SROLF\ UHILQHPHQW WRZDUG UHFRJQLWLRQ RI VSRXVH ULJKW WR
VXFFHHGODQGULJKWVRIDQRWKHUVSRXVHZKHQPDUULDJHLVGLVVROYHGE\GHDWKRUDEVHQFH
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyu
‹„Ž‹‘‰”ƒ’Š›
$$8 /DQG7HQXUH3URMHFW,QVWLWXWHRI'HYHORSPHQW5HVHDUFK
$ED\0DQG*HQHQH$ +XPDQ5LJKWZRPHQXQGHUWKH(WKLRSLDQODZ
$JDUZDO % $ )LHOG RI 2QH V 2ZQ *HQGHU DQG /DQG 5LJKWV LQ 6RXWK $VLD &DPEULGJH
&DPEULGJH8QLYHUVLW\3UHVV
$NXQD %HDWULFH
$FFHVV WR DQG FRQWURO RYHU ODQG IURP D JHQGHU SHUVSHFWLYH $
6WXG\
LQ
WKH
9ROWD
5HJLRQ
RI
*KDQD5HWULHYHG
RQ
6HSWHPEHU
IURP
IWSIWSIDRRUJGRFUHSIDRDHHDHHSGI
$QZDU +DVVHQ :RPHQ¶V DFFHVV WR ODQG DQG FRQWURO RYHUODQG LQ UHODWLRQ WR GHYHORSPHQW &DVH RI
$JDUID:RUHGDLQ%DOH=RQH2URPLD5HJLRQ
%DKUX=HZGH
$ +LVWRU\ RI 0RGHUQ (WKLRSLD $GGLV $EDED 8QLYHUVLW\3UHVV
DQG5HVHDUFKDQG*UDGXDWHSURJUDPPH2IILFH$GGLV$EDED
%DUWOHWW
-
(
,,
'HWHUPLQLQJ
.RWUOLN
DSSURSULDWH
-
:
VDPSOH
+LJJLQV
VL]H
IRU
&
2UJDQL]DWLRQDO
VXUYH\
UHVHDUFK
UHVHDUFK
,QIRUPDWLRQ
7HFKQRORJ\ /HDUQLQJ DQG 3HUIRUPDQFH -RXUQDO 6HSWHPEHU IURP
KWWSZZZRVUDRUJLWOSMEDUWOHWWNRWULNKLJJLQVSGI
%RVHUXS
(
&RQGLWLRQV
RI
$JULFXOWXUDO
*URZWK
7KH
(FRQRPLFV
RI
$JUDULDQ
&KDQJHXQGHU3RSXODWLRQ3UHVVXUH1HZ<RUN$OGLQH3XEOLVKLQJ&R
&UHVZHOO -RKQ :
(GXFDWLRQDO 5HVHDUFK 3ODQQLQJ &RQGXFWLQJ DQG (YDOXDWLQJ
4XDQWLWDWLYHDQG4XDOLWDWLYH5HVHDUFK1HZ-HUVH\3HDUVRQ(GXFDWLRQ,QF
&HQWUDO6WDWLVWLFDO$JHQF\RI(WKLRSLD&6$ $QQXDO6WDWLVWLFDO5HSRUW$GGLV$EDED
'DQLHO 'HUHVVD
2URPR
/LYLQJ
&RQWLQXLW\ DQG &KDQJHV LQWKH 6WDWXV RI :RPHQ 7KH &DVH RI $UVL
$GMDFHQW
7R
8SSHU
:DEH9DOOH\
'RGROD $GGLV
$EDED
8QLYHUVLW\
$GGLV$EDED
'DYLVRQ - /DQG DQG :RPHQ V $JULFXOWXUDO 3URGXFWLRQ/RQGRQ %RXOGHU :HVW 9LHZ
3UHVV
'HLQLQJHU.'DQLHO$/+ROGHQ6 =HYHQEHUJHQ- 5XUDO/DQG&HUWLILFDWLRQLQ
(WKLRSLD 3URFHVV ,QLWLDO ,PSDFW DQG ,PSOLFDWLRQV IRU 2WKHU $IULFDQ &RXQWULHV
:DVKLQJWRQ'&:RUOG%DQN:RUOG%DQN3ROLF\5HVHDUFK:RUNLQJ3DSHU
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyv
'HUPDQ % 5 2GJDDUG DQG ( 6MDDVWDG &RQIOLFWV RYHU /DQG DQG :DWHU LQ $IULFD 2[IRUG -DPHV
&XUUH\
'HVVDOHJQ5DKPDWR $JUDULDQ5HIRUPLQ(WKLRSLD8SSVDOD6,$6
'HVVDOHJQ5DKPDWR $JUDULDQ5HIRUPLQ(WKLRSLD1HZ-HUVH\7KH5HG6HD3UHVV
'HVVDOHJQ 5DKPDWR
/DQG 7HQXUH DQG /DQG 3ROLF\ LQ (WKLRSLD DIWHU WKH 'HUJ
3URFHHGLQJRIWKH6HFRQGZRUNVKRSRIWKH/DQG7HQXUH3URMHFW1RUZD\
'HVVDOHJQ 5DKPDWR 5HVHWWOHPHQW ,Q (WKLRSLD 7KH 7UDJHG\ 2I 3RSXODWLRQ 5HORFDWLRQ ,Q
7KHV)66'LVFXVVLRQ3DSHU1R$GGLV$EDED)RUXP)RU6RFLDO6FLHQFHV
'HVVDOHJQ 5DKPDWR )URP +HWHURJHQHLW\ WR +RPRJHQHLW\ $JUDULDQ &ODVV 6WUXFWXUH LQ
(WKLRSLDVLQFHWKHV3DSHU3UHVHQWHGRQ/DQGDQG6XVWDLQDEOH$JULFXOWXUH
(QGHO\ - % 6WUDWHJLHV DQG SURJUDPPHV IRU ZRPHQ LQ $IULFD¶V DJULFXOWXUDO VHFWRU ,Q
$OWHUQDWLYH VWUDWHJLHV IRU $IULFD (QYLURQPHQW >DQG@ ZRPHQ HGLWHG E\ 0 6XOLPDQ /RQGRQ,QVWLWXWHIRU$IULFDQ$OWHUQDWLYHV ,)$$ (($
(WKLRSLDQ (FRQRPLF $VVRFLDWLRQ/DQG 7HQXUH DQG $JULFXOWXUDO 'HYHORSPHQW LQ
(WKLRSLD
5HVHDUFK 5HSRUW E\ (WKLRSLDQ (FRQRPLFV $VVRFLDWLRQ (WKLRSLDQ (FRQRPLF
3ROLF\ 5HVHDUFK ,QVWLWXWH (($((35, $GGLV $EDED 6\PSRVLXP 2UJDQL]HG E\ WKH )66
(($DQG$(6($GGLV$EDED
*RYLQG.HONDU 7KHIRJRI(QWLWOHPHQWZRPHQDQGODQGLQ,QGLD$QQXDO:RUOG%DQN&RQIHUHQFHRQ
/DQG
DQG
3RYHUW\
$YDLODEH
RQ
KWWSVZZZJRRJOHFRPHWT QDWLRQVWKDWUHFRJQL]HZRPHQVLQGHSHQGHQWWLWOHWRODQGULJKWVSGI
DFFHVVHGRQ2FWREHU
5HNKD 0HKUD :RPHQ /DQG DQG 6XVWDLQDEOH 'HYHORSPHQW ,QWHUQDWLRQDO &HQWHU IRU 5HVHDUFK RQ
:RPHQ
0RQWJRPHU\:UD\:LWWHQ 7KH3URWHFWLRQRI/DQG5LJKWVLQ(WKLRSLD$IULND)RFXV9RO1U
7KH )HGHUDO 'HPRFUDWLF 5HSXEOLF RI (WKLRSLD 0LQLVWU\ RI )LQDQFH DQG (FRQRPLF 'HYHORSPHQW 6XVWDLQDEOH'HYHORSPHQWIRU3RYHUW\5HGXFWLRQ3URJUDP
7KH )HGHUDO 'HPRFUDWLF 5HSXEOLF RI (WKLRSLD 0LQLVWU\ RI )LQDQFH DQG (FRQRPLF 'HYHORSPHQW 3URJUDPRI$FFHOHUDWHGDQG6XVWDLQDEOH'HYHORSPHQWWR(QG3RYHUW\
=HQDEDZRUNH7DGHVVH ³:RPHQ DQG /DQG 5LJKW LQ (WKLRSLD´ 3UHVHQWHG RQ WKH ZRUNVKRS
/DQG7HQXUH3URMHFWRQ$FFHVVWR/DQGDQG5HVRXUFH0DQDJHPHQWLQ(WKLRSLD:RUNVKRS3DSHU5HWULHYHG
RQ$XJXVWIURPKWWSZZZODZHPRU\HGX:$/:$OVWXGLHVHWKLRSLDKWP
/LVD%HQQHWW :RPHQ/DZDQG3URSHUW\LQWKH'HYHORSLQJ:RUOG$Q2YHUYLHZ+XP5WV4
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyw
0DPLWX<LOPD 6RPH $VSHFWV RI WKH 6WDWXV RI :RPHQ DPRQJ WKH .RQVR RI 6RXWKHUQ
(WKLRSLD
$GGLV
$EDED
$GGLV
$EDED
8QLYHUVLW\
0DVWHU¶V
7KHVLV
5HWULHYHG
RQ
6HSWHPEHUIURPKWWSKGOKDQGOHQHW
6WHLQ+ROGHQ (DUO\,PSDFWVRI/DQG5HJLVWUDWLRQDQG&HUWLILFDWLRQRQ:RPHQLQ6RXWKHUQ(WKLRSLD
6LUDM6DLWDQG+LOLDU\/LP /DQG/DZDQG,VODP3URSHUW\DQG+XPDQ5LJKWVLQ0XVOLP:RUOG=HG
%RRNV/RQGRQDQG1HZ\RUN
/DZV
&RQYHQWLRQRQ(OLPLQDWLRQRI$OO)RUPVRI'LVFULPLQDWLRQ$JDLQVW:RPHQ &('$: 8QLYHUVDO'HFODUDWLRQRI+XPDQ5LJKWV 8'+5
,QWHUQDWLRQDO&RQYHQWLRQRQ&LYLODQG3ROLWLFDO5LJKWV ,&&35 )'5(/DQG8VHDQG$GPLQLVWUDWLRQ3URFODPDWLRQ1R
&RQVWLWXWLRQRIWKH)HGHUDO'HPRFUDWLF5HSXEOLFRI(WKLRSLD 3URFODPDWLRQ1R1HJDULW*D]HWD
<HDU1R
611355HYLVHG&RQVWLWXWLRQ
611356/DQG/HJLVODWLRQV
7KH&LYLO&RGHRI(WKLRSLD
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyx
’’‡†‹šǣ
4XHVWLRQQDLUHDQG,QWHUYLHZ*XLGHOLQHXVHGWR&ROOHFW'DWDIURP5HVSRQGHQWVIRUVWXG\³:RPHQ¶V$FFHVVWR
/DQG 5LJKWV XQGHU (WKLRSLDQ /DQG /DZ &DVH RI 6HOHFWHG :RUHGDV RI *HGHR =RQH LQ 6RXWKHUQ (WKLRSLD
$SSUDLVDORI/DZYLVjYLV3UDFWLFH
'HDU5HVSRQGHQWV
3OHDVHQRWHWKDWWKHUHLVQRULJKWRUZURQJDQVZHUVRIHHOIUHHWRJLYHWKHDQVZHU\RXWKLQNLVFRUUHFW6WULFW
FRQILGHQWLDOLW\ ZLOO EH PDLQWDLQHG DQG DOO WKH LQIRUPDWLRQ FROOHFWHG WKURXJK WKLV TXHVWLRQQDLUH ZLOO UHPDLQ
FRQILGHQWLDO7KHLQIRUPDWLRQ\RXSURYLGHZLOOQRWEHXVHGIRUDQ\RWKHUSXUSRVHDSDUWIURPLWVLQWHQGHGXVH
3DUW,'HPRJUDSKLF&KDUDFWHULVWLFVRI5HVSRQGHQWV
6H[0DOH|)HPDOH|
$JH|||$ERYH|
(GXFDWLRQDO6WDWXVLOOLWHUDWH ||FHUWLILFDWH|GLSORPD |DERYHGLSORPD|
5HVLGHQFHRIUHVSRQGHQW5XUDO|8UEDQ|2WKHU|
3DUW ,, 4XHVWLRQV IRU :RUHGD.HEHOH /DQG $GPLQLVWUDWLRQ 2IILFLDOV DQG 0DLQ
5HVSRQGHQWV
'RZRPHQWDNHSDUWLQGLVFXVVLRQRIODQGSROLFLHVDQGPHHWLQJV"|<HV|1R
RWKHUH[SODQDWLRQ
:KDWLVWUHQGRIODQGUHJLVWUDWLRQDQGFHUWLILFDWLRQLQ\RXUZRUHGD"
|,WDIIHFWVZRPHQODQGULJKWV|LWWUHDWVERWKZRPHQDQGPHQHTXDOO\|,DPQRWVXUH
+RZPXFKRIODQGLVUHJLVWHUHGZLWK
DQDPHRIKXVEDQG
EQDPHRIZLIHZRPHQ
FMRLQWQDPHRIVSRXVHV
:KDW LV LPSDFW RI ODQG UHJLVWUDWLRQ DQG FHUWLILFDWLRQ RQ ZRPHQ DFFHVV WR ODQG ULJKWV LQ \RXU
ZRUHGDNHEHOH"
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyy
D ,WGRHVQRWKDYHLPSDFWRQZRPHQDFFHVVWRODQGULJKWV
E ,WHQKDQFHVZRPHQDFFHVVWRODQGULJKWV
F ,WVWUHQJWKHQHGPDOHGRPLQDQFHLQFRQWUROOLQJODQGULJKWV
G ,KDYHQRLGHDRQLVVXH
:KDWDUHIDFWRUVWKDWKLQGHUZRPHQDFFHVVWRODQGULJKWVLQ\RXUZRUHGD"
D0DOHGRPLQDWLRQ
E&XVWRPDU\ODZ
F'HSHQGHQF\RIZRPHQRQPHQ
G/DFNRIILQDQFLDOUHVRXUFH
H8QZLOOLQJQHVVRIJRYHUQPHQWRIILFLDOV
I/DFNRIDZDUHQHVV
$Q\ RWKHU IDFWRU
:KDWDUHWKHLPSDFWVRIWKHODQGUHIRUPRQZRPHQDFFHVVWRODQGULJKWV"
D,QWURGXFWLRQRIMRLQWFHUWLILFDWHVZLWKVSRXVHVQDPH
E1RLPSDFWIRUZRPHQDFFHVVWRODQGULJKWV
F3RVLWLYHLPSDFW
G$Q\RWKHULPSDFW LIDQ\ :KDWDUHWKHLPSDFWVRIMRLQWFHUWLILFDWLRQIRUKXVEDQGVDQGZLYHV"
D,WHQKDQFHGZRPHQDFFHVVWRODQGULJKWV
E,WUHFRJQL]HGWKHPDOHGRPLQDQFH
F1RWDQJLEOHULJKWVDFTXLUHGE\ZRPHQ
G2WKHULPSDFW LIDQ\ :RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWyz
$7RZKDWH[WHQWWKHZRPHQDUHDEOHWRHQIRUFHWKHLU/DQGULJKWV"
%+RZPXFKOHJDOVXSSRUWWKH\DUHDEOHWRJHW"DQG
&7RZKDWH[WHQWWRODQGGLVSXWHVUHODWHGZLWKZRPHQHQGZLWKSRVLWLYHRXWFRPHVIRUZRPHQLQDFFRUGDQFH
ZLWKWKHODZLQWKHVWXG\DUHD"
$'R\RXQJJLUOVKDYHDQ\WKLQJWRVD\LQUHODWLRQWRODQGULJKWVEHIRUHPDUULDJHRU
%&DQVKHFODLPODQGULJKWVIURPWKHFODQRIKXVEDQGRUIDPLO\LGHQWLILHGIRUWKHPRU
& FDQ WKH\ LQKHULW ODQG IURP KRPH RI WKHLU QHZ KXVEDQG DQG LQKHULWHG ODQG IURP WKHLU SUHYLRXV SDUHQWV
SUDFWLFDOO\"
'$UHGDXJKWHUVDQGVRQVLQKHULWLQJODQGULJKWVHTXDOO\LQ\RXUORFDOLW\"
:KDWDUHSUDFWLFHVRI%ULGHSULFHVDQGGRZULHVLQVWXG\DUHDRUDUHJLUOVWKHSURSHUW\RIWKHKXVEDQGDQG
KLVFODQRUIUHHKXPDQEHLQJ"&DQODQGEHGRZULHVGXULQJPDUULDJH"
:KRPDUULHVZRPDQLIWKHKXVEDQGGLHVLQWKHVWXG\DUHD
D +XVEDQG¶VFODQ
E $EURWKHURIWKHODWHKXVEDQGZRXOGEHFRPHWKHQHZKXVEDQG
F 6KHFDQIUHHO\PDUU\DQ\SHUVRQ
:KDWLVWKHLPSDFWRIZRPDQPDUULDJHWRIDPLO\RIODWHKXVEDQGSUDFWLFHRQZRPHQDFFHVVWRODQGULJKWV"
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWy{
:KDWDUHUHDOODUJHFKDQJHVDIWHUQHZODQGODZVRQZRPHQDFFHVVWRODQGULJKWV"
:KDWDUHWKHUROHRIODQGUHJLVWUDWLRQDQGFHUWLILFDWLRQZKHUHKXVEDQGVDQGZLYHVDUHJLYHQMRLQWWLWOHVWR
WKHLUODQGDLPLQJWRVWUHQJWKHQZRPHQ¶VODQGULJKWVWKDWWUDGLWLRQDOO\KDYHEHHQZHDNHUWKDQWKRVHRIPHQLQ
PRVW VRFLHWLHV" :KDW DUH SUREOHP RI MRLQW WLWOLQJ RI ODQG ULJKWV ZLWK QDPH RI ERWK VSRXVHV" :KDW LV WKH
VROXWLRQIRUWKLVSUREOHP"
:KDWLVWKHH[WHQWRIUXUDOZRPHQ¶VDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD"
:KDWLVWKHFXUUHQWSUDFWLFHUHJDUGLQJWKHLPSOHPHQWDWLRQRIWKHODQGULJKWVRIZRPHQLQOLJKWRIUHJLRQDO
ODQGXVHDQGDGPLQLVWUDWLRQSROLF\DQGODZVLQWKHVWXG\DUHD"
:KDWDUHWKHHIIHFWVRIZRPHQOHVVDFFHVVWRODQGULJKWVLQWKHVWXG\DUHD"
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWzr
:KDW DUH )DFWRUV DVVRFLDWHG ZLWK :LOOLQJQHVV WR SD\ IRU 6HFRQG 6WDJH FHUWLILFDWH LQ FDVK DQG LQ ODERU
FHQVRUHGSDQHOWRELWPRGHOVZLWKODQGYDOXHV"
:KDWLVWKHH[WHQWRI DFFHVVWRODQGULJKWVVHFXULW\RIWHQXUHDQGIRUFLEOHHYLFWLRQRIZRPHQIURPODQGLQ
\RXUDUHD"
:KRZLQPRVWFRQIOLFWVRYHUDFFHVVWRODQGULJKWVRUWKHDEXVHRISHUFHLYHGULJKWVWRWKHODQG"
'RZRPHQDFTXLUHODQGULJKWVDWGLYRUFH"2UGRWKH\ORRVHWKHSURSHUW\WRWKHKXVEDQG"
'R\RXWKLQNWKHUHLVDUHFXVWRPDU\ODZVUHJXODWLQJODQGULJKWVLQ*HGHR=RQH"
$<HV%1R&,KDYHQRLGHD
,I\RXUUHVSRQVHWR4XHVWLRQ1RLV³\HV´ZKDWLVLPSDFWRIVXFKFXVWRPDU\ODZRQZRPHQ¶VDFFHVVWR
ODQGULJKWVLQ\RXUSODFHRIUHVLGHQFH"
$,WGHQLHVZRPHQ¶VODQGULJKWV%,WUHVSHFWVZRPHQ¶VODQGULJKWV
&,WSURWHFWVZRPHQ¶VODQGULJKWVEHWWHUWKDQVWDWXWRU\ODZ
)URPFXVWRPDU\ODZDQGVWDWXWRU\VWDWHODZZKLFKGRHVJRYHUQODQGLQKHULWDQFHULJKWV"
$&XVWRPDU\%*RYHUQPHQWDOODZ&%RWK',DPQRWVXUH
:RPHQ¶V$FFHVVWR/DQG5LJKWVXQGHU(WKLRSLDQ/DQG/DZ&DVHRI6HOHFWHG:RUHGDVRI*HGHR=RQHLQ
6RXWKHUQ(WKLRSLD$SSUDLVDORI/DZYLVjYLV3UDFWLFHE\.DVVLP.XIIDDQG$UD\D$VJHGRP SYWzs