Remarks to Chamber of Commerce June 4, 2015 Nicholas Prouty President Izquierdo, Members of the Chamber, and distinguished guests. I am humbled to stand before the leadership of Puerto Ricos private sector. I usually tend to speak to offshore investors and try to convince them to relocate their operations to Puerto Rico so it was particularly gratifying to receive an invitation to speak to you given that I brag about your talents all the time. My family and I moved here at a time of great fiscal uncertainty and as a serial entrepreneur, I know what it is like to be down: you have your great days as well as your dark days, But I have always believed that when adversity strikes you must remember the following words: That greatness comes not when things go your way but only when you are really tested when you take some knocks, some disappointments, when sadness comes, because only if you have been in the deepest valley can you ever know how magnificent it is to be on the highest mountain. Anyone recognize that quote? If you did not, it came from Richard Nixons farewell address on August 9, 1974, arguably a pretty tough day in his life not to mention the nations. We are definitely in the valley but I see the mountain top. We must re-imagine Puerto Rico; rebuild it, shape it into a form that allows our people to compete magnificently in the knowledge based economy. We must develop businesses that play upon our greatest strengths. Concurrently we need to bring in as much

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outside capital as possible equity capitalno more debt. We have already mortgaged our great grandchildrens future. So what makes me such a passionate believer in Puerto Rico? What makes me look past the headlines and see what I think what John Paulson thinks could be one of the great economies of all time? Perhaps it takes people coming from outside to see possibilities others do not I remember being at a dinner party in Paris and listening to a group of great thinkers discuss the United States economy. I was floored by their sensitivity and insight and quickly came to the conclusion that I had lost site of the forest through the trees that my pre-conceived notions had blinded me to the possibilities. This is the Moment of Puerto Rico, and I believe Puerto Rico will not only successfully emerge from its current situation but that it will thrive that it will become one of the world's most iconic places to visit, live, and work. That is why I said yes to this speaking engagement because the audience is you, a gathering of local executives, entrepreneurs and investors, looking to invest in the emerging sectors that will drive the island's future economy. Law 22 residents are moving here, investing capital and beginning to spend money in the local economy, and although I would like to see this group become even more engaged to be the new venture capital providers to our tech startups to be the benefactors of our museums and performing arts centers to endow surgical suites in our hospitals we all need to allow this program to work perhaps in the future the program could be amended to require grantees to make local investments or to raise the rate a bit, but for the time being I think we should all allow the Department of Economic Development to have the tools it needs to bring in as many of these people as we possibly can.

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But it is you, my friends, who have been here longer you are born and bred boricuas, you have invested your entire life on the island, and as others have fled, you have stayed, with an unwavering commitment betting on the future of Puerto Rico -- a future you will shape. You're like Don Chago in La Carreta his whole family moves to New York, and yet he stays put, glued to the land he loves. Don Chago deserves our honor and respect. Because like him, your soul still rises at the thought of that new and amazing Puerto Rico the prospect of being part of the magnificent recovery you see right on the horizon. That is why you're here today you are here to explore investment opportunities in the emerging sectors. You have committed. You want to be part of that future, inside the ring, and I want to recognize you today for your vision, for your valor. You are the agent of change and the engine of hope, you will make the difference for your children and for the people of Puerto Rico. And I want you to know that I stand shoulder to shoulder with you in this fight. Those are not just words, I have invested hundreds of millions of dollars because I believe in you. So how do we get there? Sometimes it can seem daunting. Sometimes even I read Barrons and say to myself: what am I doing here? But let me tell you a quick story. In early December, I received a call from President Clinton inviting me to join him in Miami to celebrate the 20th Anniversary of The Summit of the Americas.

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The First Summit was held in 1994 and was historic for many reasons. First: It was attended by the Presidents of over 34 nations in what at that point was the greatest assemblage of hemispheric leadership ever gathered. Second: Never before had an American President taken the time to organize such an event and to create an agenda that specifically addressed the key issues confronting the region. And third: Never before had an American President showed that degree of interest or frankly that degree of respect to his southern neighbors. The tangible outcome of the event was the creation of a document called the Declaration of Principles which established a pact for development and prosperity based on the preservation and strengthening of democracies in the Americas.

From an intangible perspective, the summit was even more powerful in that the traditional east/west paradigm was challenged by a new North/South dynamic.

I had the opportunity to spend time with President Santos of Colombia. The President was keenly aware of the economic challenges we confront in Puerto Rico.

He told me that Puerto Rico had everything it needed to be a powerhouse.

He was aware of our great intellectual tradition, our sweetness of nature and of our creativity. He wanted me to relay the message that if Colombia could turn itself around in just a few short years so to could Puerto Rico. He added however, that for that to happen, traditional infighting would have to stop and Puerto Ricans would have to start thinking of themselves as brothers and sisters and not pawns in a political game.

So you are here today not just to attend the annual meeting of the Chamber of Commerce

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No, you are here today to bear witness to hope to bear witness to a brighter future you are here because you embrace a sacred belief: that Puerto Ricos best days her very best days are yet to come. I know the challenges seem overwhelming, but I also know that it is darkest before dawn. What we are going through today is exactly what New York City went through in the mid-1970s and the solutions to New Yorks woes were simple. Reign in government spending, reorganize the debt, privatize failed agencies and cut red tape from government. It is that simple and dont let anyone convince you otherwise. Puerto Rico is now my home it is where I live with my wife and daughter it is where we laugh, it is where we do homework it is where we dream it is where my daughters fondest memories will be created. Maybe that is the reason I fly through the night to meet with companies who want to invest in Puerto Rico maybe it is because there are so many misconceptions that need to be addressed maybe it is because I want everyone to know what I know that Puerto Rico is magical. I was asked by Pepe and his team to frame your search for those opportunities in the context of the island's business climate. But let me tell you something: We can no longer have that conversation, or any conversation in Puerto Rico, without placing at the very heart of that reflection, an honest and blunt discussion of who we are as a people. Who is that person we call puertorriqueo? What is the core purpose that moves him? What gets her up in the morning? The answer to these questions, takes us to the very essence of our business climate and straight to the action agenda we must execute.

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The great Puerto Rican poets, songwriters and novelists have spoken of this for ages. But in my research, I have not found any who has effectively connected the dots and looped this fundamental nature back to the island's economic model. But before we dive into that, allow me a moment to dispel some misguided thinking. The fiscal crisis does not prohibit investment. It makes our job more difficult, but with risk comes greater reward. I believe everyone will look back upon this moment and kick themselves for not investing more. Second, we HAVE an economic model. Stop talking and acting as if we don't. Because we do. The problem is that we are too skeptical and fail to embrace the model and rally behind it. Third, and hear me out on this thought before passing judgement. We do not need a change in status to stimulate the economy. Puerto Rico has been using its fiscal autonomy to offer incentives for decades, under both parties. Today is no different. It is to everyone's benefit for Puerto Rico to prosper whether you are an Estado librista, estadista or an independentista, the more prosperous the island becomes, the better it will be for EVERY status option later on. I was recently asked how I define success, and my answer was simple. Success gives you options. We need to be successful in order for our fellow countrymen to pursue every possible status option. Status is far more an issue of justice and democracy than it is of poverty and prosperity.

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So now that I have offended everyone, let me continue. The new model must be based on who we are as a people. Because no matter who you are in Puerto Rico -- whether you are from the city or el campo, whether you hold a Ph.D. or have no formal education at all, whether you are corporate bosses or rank-and-file workers, rich or poor, male or female, young or old, famous or anonymous -- no matter who you are in Puerto Rico, you tend to share some basic traits as a people. These are the traits that explain not only what you love most, but also what outsiders love most about you -- what people tend to say when they visit Puerto Rico, what Corporate executives tend to highlight. Your essence, in other words, IS your big competitive advantage. Is it surprising that Germans dominate the world of high precision manufacturing given their exacting nature? Or that the glamorous French basically own the high end luxury products vertical? Or that Chinese given their low labor costs are the world's largest manufacturers of inexpensive items? All those countries identified their core essence and played on their strengths. We must do the same. And, unless we are clear about what Puerto Ricans love and are really good, defining an investment climate and agreeing on a path forward will remain an exercise in frustration. So at the risk of overgeneralizing or simplifying, and in the interest of sparking a broader discussion, let me tell you how I see it. There are four primary traits that stand out most, and they are all beautiful and powerful at the same time and reinforce one another, and I mention them here in no particular order.

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One is humility. You are humble. Perhaps it is the Tano and the Catholic in you, all wrapped up into one. You don't showboat or brag. Your ego is generally in check. And when one of you gets out of hand, the overwhelming social and peer pressure pulls you back down to earth. You know that genuine smile, the eyes that disarm on sight, the look of sublime sweetness on your face? It is a deep-seeded trait captured by poets across time, from Gautier Benitez in the 1850s to Santos Febres today. In his excellent book on Tano society, Francisco Moscoso traces the very root of your humility several hundred years before the arrival of the conquistadors. A second and related characteristic is community. Puerto Ricans live and work in clans. It is what you love most. You live for family and community, to be there when you are needed, to help and serve others, or just to hang out. It makes you so hospitable, so welcoming to strangers. You are willing to bring others into your circle of friends. So open, so inviting. And that brings me to a third defining characteristic: joy. You are the happiest people I have ever seen. I have never seen a place with so many parties going on at the same time. In restaurants, at school, even in funeral parlors -- wherever there are Puerto Ricans gathered, there are Puerto Ricans laughing and singing and having a good time.

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Spontaneous conversations among strangers break out in elevators, supermarket lines and buses. It is wonderful, it is contagious, and it is the best thing that has ever happened to this uptight New Englander. The final characteristic -- creativity. You are among the most creative people on the planet. For 3.6 million people inhabiting a 35 by 100 mile island, you are bursting with creativity. So there you have it. Humility. Community. Joy. Creativity. It does not take a genius to see how these come together to turn Puerto Rico into one of the very best places to visit as a tourist, to move to as a resident, to study as a student, or to set up a company to export. For you in this room, it is a roadmap that provides exciting opportunities. For example, we have some of the greatest ABA accredited law schools in the world and because of the low cost of education, the Inter American University is implementing a JD program in English. Young attorneys will now be able to graduate with manageable student debt loads as opposed to $200,000 in the continental United States. We have some of the greatest doctors in the world and we ought to be fully engaged in medical tourism. Medical treatment is significantly lower here. This one is a no brainer. The infrastructure is already built. We have to stop doubting and start acting. Stop insisting on the return of an economy fueled by big government, construction, manufacturing and the old traditional consumer economy, and start engaging deeply and smartly in the new economy fueled by this new generation of big capital from abroad, centered increasingly on the island's cool

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neighborhoods, all based on and driven by that beautiful, powerful core essence that makes us who we are as boricuas. Because that which makes you humble, communal, joyful and creative, also makes you an amazing place to visit, an amazing workforce to hire, amazing local partners for any 22er or foreign company -- simply, an amazing market that is headed straight to stardom, with a singularly powerful place in the global economy. You are El Josco, the proud bull in the story by Diaz Alfaro, who found strength in his race, stood tall for all that was Puerto Rican, and through it all, through the hardships remained firm to his core essence. Because that's what the core does: it stays strong, it refuses to weaken, it defines who you are, and looking ahead to the coming decade and beyond, it will be the very core of your success. Of our success. Thank you so much it has been an honor to stand before the business leaders of Puerto Rico.

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