        5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
             3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

     (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                 )LOH 1DPH DS




81,7('67$7(6&28572)$33($/6
               )257+(6,;7+&,5&8,7
                 BBBBBBBBBBBBBBBBB


 81,7(' 67$7(6 2) $0(5,&$        ;
           3ODLQWLII$SSHOOHH     
                                   
                                      1R
            Y                     
                                    !
                                   
 52%(57 5((' &$03%(//             
          'HIHQGDQW$SSHOODQW 
                                  1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/H[LQJWRQ
  1Rn.DUO6)RUHVWHU&KLHI'LVWULFWsXGJH
                 $UJXHG2FWREHU
          'HFLGHGDQG)LOHG1RYHPEHU
   %HIRUH.(11('<1255,6DQG%$7&+(/'(5
                  &LUFXLWsXGJHV
                   BBBBBBBBBBBBBBBBB
                        &2816(/
$5*8('  5LFKDUG $ &OLQH 0,7&+(// $//(1
&$7$/$12 	 %2'$ &ROXPEXV 2KLR IRU $SSHOODQW
sDPHV ( $UHKDUW $66,67$17 81,7(' 67$7(6
$77251(< /H[LQJWRQ .HQWXFN\ IRU $SSHOOHH
21 %5,()  5LFKDUG $ &OLQH 0,7&+(// $//(1
&$7$/$12 	 %2'$ &ROXPEXV 2KLR IRU $SSHOODQW
sDPHV ( $UHKDUW &KDUOHV 3 :LVGRP sU $66,67$17

                             
     8QLWHG6WDWHVY&DPSEHOO                       1R

81,7('67$7(6$77251(<6/H[LQJWRQ.HQWXFN\IRU
$SSHOOHH
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
   .(11('<&LUFXLWsXGJH'HIHQGDQW&DPSEHOODSSHDOV
WKH GLVWULFW FRXUWjV LPSRVLWLRQ RI D PRQWK VHQWHQFH IRU
SRVVHVVLRQ RI VWROHQ PDLO WR EH VHUYHG FRQVHFXWLYH WR WKH
XQGLVFKDUJHG SRUWLRQ RI D VHQWHQFH LPSRVHG E\ WKH 8QLWHG
6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI1HZsHUVH\IRU
D VXSHUYLVHG UHOHDVH YLRODWLRQ  +H DUJXHV WKDW WKH GLVWULFW
FRXUWHUUHGZKHQLWIDLOHGWRLPSRVHVHQWHQFHIRUWKHLQVWDQW
RIIHQVH FRQFXUUHQW ZLWK WKH XQGLVFKDUJHG SRUWLRQ RI KLV
VXSHUYLVHG UHOHDVH YLRODWLRQ VHQWHQFH  )RU WKH UHDVRQV VHW
IRUWKEHORZZH$)),50WKHMXGJPHQWRIWKHGLVWULFWFRXUW
                                 ,
  2Q sXQH   GHIHQGDQW SOHG JXLOW\ WR D 5,&2
FRQVSLUDF\FKDUJHDQGWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH
(DVWHUQ'LVWULFWRI1HZsHUVH\LPSRVHGDPRQWKVHQWHQFH
WREHVHUYHGFRQVHFXWLYHWRDVHQWHQFHLPSRVHGIRUDSULRU
IHGHUDO FRQYLFWLRQ  &DPSEHOO ZDV SODFHG RQ WKUHH \HDUV
VXSHUYLVHGUHOHDVHRQ0DUFK
  %HWZHHQ1RYHPEHUDQGsDQXDU\ZKLOH
RQ VXSHUYLVHG UHOHDVH &DPSEHOO FRPPLWWHG D VHULHV RI
RIIHQVHV&RQVHTXHQWO\RQ$SULOWKH(DVWHUQ'LVWULFW
RI 1HZ sHUVH\ UHYRNHG &DPSEHOOjV VXSHUYLVHG UHOHDVH DQG
VHQWHQFHGKLPWRDQPRQWKWHUPRILPSULVRQPHQW
  2Q'HFHPEHU&DPSEHOOZDVLQGLFWHGLQWKH8QLWHG
6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\RQ
RQH FRXQW RI SRVVHVVLRQ RI VWROHQ PDLO LQ YLRODWLRQ RI 
86&DQGWKUHHFRXQWVRIEDQNIUDXGLQYLRODWLRQRI
86&2Q0D\&DPSEHOOSOHGJXLOW\WR
YLRODWLQJDQGWKHGLVWULFWFRXUWLPSRVHGDPRQWK
VHQWHQFHWREHVHUYHGFRQVHFXWLYHWRWKHXQGLVFKDUJHGSRUWLRQ
     8QLWHG6WDWHVY&DPSEHOO                       1R       1R                    8QLWHG6WDWHVY&DPSEHOO          

VHQWHQFHIRUWKHLQVWDQWRIIHQVHWKDWIHOODWWKHORZHQGRIWKH        RIWKHPRQWKVHQWHQFHLPSRVHGE\WKH(DVWHUQ'LVWULFWRI
VHQWHQFLQJJXLGHOLQHUDQJHVXFKDVWKHUHTXHVWHGPRQWK              1HZsHUVH\
FRQFXUUHQWVHQWHQFHZRXOGEHLQVXIILFLHQWWRGHWHU&DPSEHOO
IURPHQJDJLQJLQIXWXUHFULPLQDODFWLYLW\DQGWKDWDORQJHU              7KH3UHVHQWHQFH,QYHVWLJDWLRQ5HSRUWHVWDEOLVKHGDQRIIHQVH
VHQWHQFH VXFK DV WKH LPSRVHG PRQWK FRQVHFXWLYH                OHYHO RI  IRU WKH LQVWDQW RIIHQVH DQG D FULPLQDO KLVWRU\
VHQWHQFHZRXOGEHWWHUDFKLHYHWKHJRDOVRIGHWHUULQJIXWXUH            FDWHJRU\RI97KH8QLWHG6WDWHV6HQWHQFLQJ&RPPLVVLRQ
FULPLQDOFRQGXFWDQGSURWHFWLQJWKHSXEOLF                             *XLGHOLQHV0DQXDOVHWVDVHQWHQFLQJUDQJHRIWRPRQWKV
                                                                        IRU D OHYHO  RIIHQVH FRPPLWWHG E\ D GHIHQGDQW ZLWK D
   )LQDOO\ WKH GLVWULFW FRXUWjV LPSRVLWLRQ RI D FRQVHFXWLYH     FDWHJRU\9FULPLQDOKLVWRU\
VHQWHQFHLVFRQVLVWHQWZLWKWKHUHOHYDQW6HQWHQFLQJ*XLGHOLQHV
FRPPHQWDU\$SSOLFDWLRQ1RWHSURYLGHVWKDWLIDGHIHQGDQW              $WVHQWHQFLQJ&DPSEHOOUHTXHVWHGDPRQWKVHQWHQFHWR
LV RQ IHGHUDO VXSHUYLVHG UHOHDVH DW WKH WLPH RI WKH LQVWDQW   EHVHUYHGFRQFXUUHQWZLWKWKHXQGLVFKDUJHGSRUWLRQRIWKH
RIIHQVH DQG KDV KDG WKDW VXSHUYLVHG UHOHDVH UHYRNHG WKH        PRQWK VHQWHQFH LPSRVHG E\ WKH (DVWHUQ 'LVWULFW RI 1HZ
VHQWHQFH LPSRVHG IRU WKH LQVWDQW RIIHQVH VKRXOG EH               sHUVH\IRUKLVVXSHUYLVHGUHOHDVHYLRODWLRQ7KHGLVWULFWFRXUW
FRQVHFXWLYH WR WKH VHQWHQFH LPSRVHG IRU WKH VXSHUYLVHG           LPSRVHGDPRQWKVHQWHQFHWREHVHUYHGFRQVHFXWLYHWRWKH
UHOHDVHYLRODWLRQLQRUGHUWRSURYLGHDQLQFUHPHQWDOSHQDOW\            XQGLVFKDUJHG SRUWLRQ RI WKH VXSHUYLVHG UHOHDVH YLRODWLRQ
IRUWKDWYLRODWLRQ866**FRPPHQWQ                      VHQWHQFH
                                ,,,                                                                    ,,
  )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHMXGJPHQWRI                     $ GLVWULFW FRXUWjV OHJDO FRQFOXVLRQV ZLWK UHVSHFW WR WKH
WKHGLVWULFWFRXUW                                                     DSSOLFDWLRQ RI WKH 8QLWHG 6WDWHV 6HQWHQFLQJ &RPPLVVLRQ
                                                                        *XLGHOLQHVDUHUHYLHZHGGHQRYR8QLWHG6WDWHVY5REHUWVRQ
                                                                        )GWK&LU$GLVWULFWFRXUWjVGHFLVLRQ
                                                                        WRLPSRVHDFRQVHFXWLYHRUFRQFXUUHQWVHQWHQFHXQGHU*
                                                                        RI WKH 6HQWHQFLQJ *XLGHOLQHV LV UHYLHZHG IRU DEXVH RI
                                                                        GLVFUHWLRQ8QLWHG6WDWHVY&RYHUW)GWK
                                                                        &LU
                                                                           &DPSEHOODUJXHVWKDWWKHGLVWULFWFRXUWHUUHGZKHQLWIDLOHG
                                                                        WRLPSRVHDVHQWHQFHIRUWKHLQVWDQWRIIHQVHFRQFXUUHQWZLWK
                                                                        WKHXQGLVFKDUJHGSRUWLRQRIWKHPRQWKVHQWHQFHLPSRVHG
                                                                        E\ WKH (DVWHUQ 'LVWULFW RI 1HZ sHUVH\ IRU WKH VXSHUYLVHG
                                                                        UHOHDVHYLRODWLRQ866**DGGUHVVHVWKHVHQWHQFLQJRI
                                                                        DGHIHQGDQWVXEMHFWWRDQXQGLVFKDUJHGWHUPRILPSULVRQPHQW
                                                                        6XEVHFWLRQDFOHDUO\LVQRWDSSOLFDEOHWRWKLVFDVHEHFDXVH
                                                                        WKHLQVWDQWRIIHQVHZDVQRWFRPPLWWHGZKLOH&DPSEHOOZDV
                                                                        VHUYLQJ D WHUP RI LPSULVRQPHQW EXW UDWKHU ZDV FRPPLWWHG
                                                                        ZKLOHKHZDVRQVXSHUYLVHGUHOHDVH866**D
     8QLWHG6WDWHVY&DPSEHOO                     1R       1R                      8QLWHG6WDWHVY&DPSEHOO            

  &DPSEHOOLQLWLDOO\DUJXHVWKDWWKHGLVWULFWFRXUWVKRXOGKDYH       FRQVHFXWLYHVHQWHQFHZHVKRXOGDVVXPHWKDWWKHGLVWULFWFRXUW
DSSOLHG*EEHFDXVHWKHLQVWDQWRIIHQVHSURYLGHGWKH           GLG QRW UHFRJQL]H LWV GLVFUHWLRQ LQ WKLV PDWWHU DQG
HQWLUHEDVLVIRUWKHLPSRVLWLRQRIWKHXQGLVFKDUJHGWHUPRI           FRQVHTXHQWO\ ZH VKRXOG YDFDWH WKH VHQWHQFLQJ RUGHU  DQG
LPSULVRQPHQWLPSRVHGE\WKH(DVWHUQ'LVWULFWRI1HZsHUVH\           UHPDQG WKH FDVH IRU UHVHQWHQFLQJ  :KHQ D GLVWULFW FRXUW
6XEVHFWLRQESURYLGHVWKDWm>L@IWKHXQGLVFKDUJHGWHUP        H[HUFLVHVLWVGLVFUHWLRQWRLPSRVHDFRQFXUUHQWRUFRQVHFXWLYH
RILPSULVRQPHQWUHVXOWHGIURPRIIHQVHVWKDWKDYHEHHQIXOO\         VHQWHQFH LW PXVW GR VR LQ OLJKW RI WKH IDFWRUV OLVWHG LQ 
WDNHQLQWRDFFRXQWLQWKHGHWHUPLQDWLRQRIWKHRIIHQVHOHYHO          86&DDQGWKHUHOHYDQWFRPPHQWDU\&RYHUW
IRU WKH LQVWDQWRIIHQVHWKHVHQWHQFHIRUWKHLQVWDQWRIIHQVH       )G DW  LQFOXGLQJ WKH GHIHQGDQWjV KLVWRU\ DQG
VKDOOEHLPSRVHGWRUXQFRQFXUUHQWO\WRWKHXQGLVFKDUJHGWHUP         FKDUDFWHULVWLFV DIIRUGLQJ DGHTXDWH GHWHUUHQFH WR FULPLQDO
RI LPSULVRQPHQWl  866*  *E %\ LWV WHUPV             FRQGXFWDQGSURWHFWLQJWKHSXEOLFIURPIXUWKHUFULPHVRIWKH
*ELVQRWDSSOLFDEOHWRHLWKHUWKHVHQWHQFHLPSRVHGE\        GHIHQGDQW  86&  D   $ GLVWULFW
WKH(DVWHUQ'LVWULFWRI1HZsHUVH\RUWKHVHQWHQFHLPSRVHGE\         FRXUW KRZHYHU LV QRW UHTXLUHG WR PDNH VSHFLILF ILQGLQJV
WKH(DVWHUQ'LVWULFWRI.HQWXFN\6HFWLRQ*EFDQQRW            UHODWHG WR HDFK IDFWRU FRQVLGHUHG UDWKHU WKH GLVWULFW FRXUW
DSSO\ WR WKH PRQWK VHQWHQFH LPSRVHG E\ WKH (DVWHUQ         QHHGRQO\mDUWLFXODWHHQRXJKRILWVUHDVRQLQJWRSHUPLWDQ
'LVWULFWRI1HZsHUVH\EHFDXVHWKDWVHQWHQFHZDVWKHUHVXOWRI        LQIRUPHGDSSHOODWHUHYLHZl8QLWHG6WDWHVY0F&OHOODQ
WKH VXSHUYLVHG UHOHDVH YLRODWLRQ DQG XQGHUO\LQJ 5,&2            )GWK&LU
FRQVSLUDF\ FRQYLFWLRQ QRW WKH LQVWDQW RIIHQVH  6HFWLRQ
*EGRHVQRWDSSO\WRWKHPRQWKVHQWHQFHLPSRVHGE\             :HFDQQRWDJUHHZLWKWKHFRQWHQWLRQWKDWWKHUHFRUGIDLOVWR
WKH(DVWHUQ'LVWULFWRI.HQWXFN\EHFDXVHWKDWVHQWHQFHGLGQRW        VKRZWKDWWKHGLVWULFWFRXUWZDVDZDUHWKDWLWKDGGLVFUHWLRQWR
UHVXOWGXHWRDQRIIHQVHWKDWZDVmIXOO\WDNHQLQWRDFFRXQWLQ        LPSRVHHLWKHUDFRQVHFXWLYHRUFRQFXUUHQWVHQWHQFH$WWKH
WKHGHWHUPLQDWLRQRIWKHRIIHQVHOHYHOIRUWKHLQVWDQWRIIHQVHl      VHQWHQFLQJKHDULQJGHIHQGDQWjVFRXQVHOVSHFLILFDOO\UHTXHVWHG
&DPSEHOOjVVXSHUYLVHGUHOHDVHYLRODWLRQZDVQRWWDNHQLQWR            WKDWWKHGLVWULFWFRXUWLPSRVHDFRQFXUUHQWVHQWHQFHEHFDXVH
DFFRXQW LQ WKH GHWHUPLQDWLRQ RI WKH RIIHQVH OHYHO IRU WKH    mWKHFRXUWKDVWKHDXWKRULW\WRUXQWKLVPDWWHUFRQFXUUHQWO\l
LQVWDQWRIIHQVHUDWKHULWZDVRQO\WDNHQLQWRDFFRXQWLQWKH         DQDVVHUWLRQWKHGLVWULFWFRXUWGLGQRWGLVSXWH
GHWHUPLQDWLRQRI&DPSEHOOjVFULPLQDOKLVWRU\FDWHJRU\7KXV
WKHGLVWULFWFRXUWZDVFRUUHFWLQQRWDSSO\LQJ*ELQ            7KH UHFRUG DOVR VKRZV WKDW WKH GLVWULFW FRXUW LPSRVHG D
WKLVFDVH                                                            FRQVHFXWLYHVHQWHQFHEHFDXVHLWZDVUHDVRQDEOHLQOLJKWRIWKH
                                                                      IDFWRUV OLVWHG LQ  D  %HIRUH LPSRVLQJ VHQWHQFH WKH
  &DPSEHOO DOWHUQDWLYHO\ DUJXHV WKDW  *F DSSOLHV        GLVWULFW FRXUW FRQVLGHUHG GHIHQGDQWjV DJH IDPLOLDO
6XEVHFWLRQFSURYLGHVWKDWm>L@QDQ\RWKHUFDVHWKHVHQWHQFH       UHODWLRQVKLSVDQGFULPLQDOKLVWRU\7KHFRXUWREVHUYHGWKDW
IRUWKHLQVWDQWRIIHQVHPD\EHLPSRVHGWRUXQFRQFXUUHQWO\           &DPSEHOO FRQVLVWHQWO\ UHWXUQHG WR FULPLQDO DFWLYLWLHV DIWHU
SDUWLDOO\ FRQFXUUHQWO\ RU FRQVHFXWLYHO\ WR WKH SULRU           UHOHDVH IURP SULVRQ GHVSLWH SDUWLFLSDWLQJ LQ UHKDELOLWDWLRQ
XQGLVFKDUJHGWHUPRILPSULVRQPHQWWRDFKLHYHDUHDVRQDEOH             SURJUDPV GXULQJ KLV LQFDUFHUDWLRQ  $IWHU UHYLHZLQJ WKH
SXQLVKPHQWIRUWKHLQVWDQWRIIHQVHl866**F:H            3UHVHQWHQFH ,QYHVWLJDWLRQ 5HSRUW WKH GLVWULFW FRXUW
DJUHHWKDWVXEVHFWLRQFDSSOLHVEHFDXVHQHLWKHUVXEVHFWLRQ          GHWHUPLQHG WKDW &DPSEHOO KDG D mVXEVWDQWLDO FULPLQDO
DQRUVXEVHFWLRQEFDQEHDSSOLHGIRUWKHUHDVRQVGLVFXVVHG       KLVWRU\lDQGFRQFOXGHGWKDWmDVHQWHQFHDWWKHORZHQGRIWKH
DERYH                                                                UDQJHZRXOGQRWVDWLVI\PRVWRIWKHVHQWHQFLQJREMHFWLYHVVHW
                                                                      RXWLQD>WKHUHIRUH@PRUHWKDQWKHORZHQGRIWKH
  &DPSEHOOSURFHHGVWRDUJXHWKDWEHFDXVHWKHUHFRUGGRHV             JXLGHOLQHUDQJHLVUHTXLUHGLQWKHLQWHUHVWRIMXVWLFHl7KH
QRW LQFOXGH WKH GLVWULFW FRXUWjV H[SODQDWLRQ IRU LPSRVLQJ D   UHFRUG FOHDUO\ FRQYH\V WKH GLVWULFW FRXUWjV FRQFHUQ WKDW D
