         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


                         ;
 3+,/,3 5 :25.0$1              
          3HWLWLRQHU$SSHOODQW  
                                          1RV
                                          
             Y                   !
                                 
                                 
 5,&.< %(//:DUGHQ             
           5HVSRQGHQW$SSHOOHH 
                                 
                          
                                 
 ,QUH3+,/,3 5 :25.0$1      
                       0RYDQW 
                                1


             'HFLGHGDQG)LOHG0DUFK
     %HIRUH5<$16,/(5DQG&2/(&LUFXLWsXGJHV
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  6,/(5&LUFXLWsXGJH7KLVPDWWHUFRPHVEHIRUHWKHFRXUW
RQDPRWLRQWRUHRSHQDQGWRDSSRLQWDVSHFLDOPDVWHUPDGH
E\SHWLWLRQHU3KLOLS5:RUNPDQSXUVXDQWWRWKH$OO:ULWV
$FW86&)HG5&LY3FDQGEDQG
WKH FRXUWjV LQKHUHQW SRZHU WR SURWHFW WKH LQWHJULW\ RI WKH

                                
     :RUNPDQY%HOO                     1RV

MXGLFLDOSURFHVV)RUUHDVRQVVWDWHGKHUHDIWHUZHGHQ\WKH
PRWLRQ
   :RUNPDQZDVFRQYLFWHGLQ7HQQHVVHHIRUWKHPXUGHURID
0HPSKLV SROLFH RIILFHU GXULQJ D UREEHU\ LQ   $IWHU
XQVXFFHVVIXO GLUHFW DSSHDOV DQG VWDWH SRVWFRQYLFWLRQ
SURFHHGLQJV KH SHWLWLRQHG WKH GLVWULFW FRXUW IRU D ZULW RI
KDEHDV FRUSXV XQGHU  86&    7KH GLVWULFW FRXUW
GHQLHGUHOLHIDQGWKDWZDVDIILUPHGE\WKLVFRXUWLQ:RUNPDQ
Y%HOO)GWK&LUFHUWGHQLHG86
$VXEVHTXHQWSHWLWLRQWRILOHDVHFRQGKDEHDV
FRUSXVDFWLRQZDVGHQLHGE\DSDQHORIWKLVFRXUWDQGZDVDOVR
GHQLHGE\DQHTXDOO\GLYLGHGHQEDQFFRXUWLQ:RUNPDQY
%HOO)GWK&LUFHUWGHQLHGBBB86BBB
:/86)HE1R
   $IWHUWKHODWHVWGHQLDORIFHUWLRUDULWKH7HQQHVVHH6XSUHPH
&RXUW VHW DQ H[HFXWLRQ GDWH RI 0DUFK   DQG WKH
SHWLWLRQHUWKHQILOHGDPRWLRQWRVWD\WKHH[HFXWLRQGDWHDQG
WKHSHQGLQJPRWLRQWRUHRSHQDQGDSSRLQWDVSHFLDOPDVWHU
7KLV FRXUW VXEVHTXHQWO\ GHQLHG WKH PRWLRQ WR VWD\ WKH
H[HFXWLRQ GDWH  +H WKHQ ILOHG D VHFRQG PRWLRQ WR VWD\ WKH
H[HFXWLRQGDWHDORQJZLWKWKHPRWLRQWRUHRSHQDQGWRDSSRLQW
DVSHFLDOPDVWHU
  :RUNPDQFODLPVWKDWWKHJURXQGVIRUKLVSHQGLQJPRWLRQ
DUHEDVHGXSRQDIUDXGXSRQWKHFRXUW6SHFLILFDOO\KHFODLPV
WKDW WKH 6WDWH DVVHUWHG LQ DUJXPHQW EHIRUH WKLV FRXUW WKDW
:RUNPDQ VWLOO KDG WKH RSSRUWXQLW\ WR UHTXHVW UHOLHI XQGHU
H[HFXWLYHFOHPHQF\LQ7HQQHVVHH$OWKRXJK:RUNPDQZDV
JLYHQ D FOHPHQF\ KHDULQJ LQ $SULO  KH ZLWKGUHZ WKH
UHTXHVWEHIRUHWKHJRYHUQRUDFWHGXSRQLWZKLOHKLVSHWLWLRQ
IRUUHKHDULQJHQEDQFZDVSURFHHGLQJ/DWHUKHKDGDQRWKHU
FOHPHQF\KHDULQJEHIRUHWKH7HQQHVVHH%RDUGRI3UREDWLRQ
DQG3DUROH7%33RQsDQXDU\7KHJRYHUQRURI
7HQQHVVHHKDVQRW\HWGHFLGHGKLVUHTXHVWIRUFOHPHQF\VRIDU
DVWKLVFRXUWLVDZDUH:RUNPDQVHL]HGXSRQODQJXDJHLQDQ
RUGHUWKDWWKLVFRXUWHQWHUHGLQGHQ\LQJWKHILUVWSHWLWLRQ
IRUUHKHDULQJHQEDQFZKHQZHVWDWHG
1RV                      :RUNPDQY%HOO           

  m7KHWUDGLWLRQDOUHPHG\IRUFODLPVRILQQRFHQFHEDVHGRQ
  QHZHYLGHQFHGLVFRYHUHGWRRODWHLQWKHGD\WRILOHDQHZ
  WULDOPRWLRQKDVEHHQH[HFXWLYHFOHPHQF\l+HUUHUDY
  &ROOLQV86
8QGHU7HQQHVVHHODZWKHJRYHUQRUPD\JUDQWFOHPHQF\VHH
7HQQ &RGH $QQ  VR :RUNPDQ PD\ SURGXFH
HYLGHQFHWRWKHJRYHUQRUWKDWWKHIDWDOVKRWPXVWKDYHFRPH
IURPVRPHRQHHOVHjVJXQ
  ,Q VXSSRUW RI KLV FODLP RI IUDXG :RUNPDQ PDNHV WKH
IROORZLQJDOOHJDWLRQVWKH7HQQHVVHH$WWRUQH\*HQHUDO
DQGRWKHUVIURPKLVRIILFHSHUVRQVDVVRFLDWHGZLWKWKH7%33
UHSUHVHQWDWLYHV RI WKH 6KHOE\ &RXQW\ 'LVWULFW $WWRUQH\jV
2IILFH DQG WKH JRYHUQRUjV VWDII KHOG PHHWLQJV DERXW WKH
FOHPHQF\ SURFHHGLQJV WKDW ZHUH GHVLJQHG WR VHFXUH KLV
H[HFXWLRQ  WKH 7%33 ZDV KRVWLOH WR WKH ZLWQHVVHV
:RUNPDQSUHVHQWHGGXULQJWKHFOHPHQF\SURFHHGLQJVWKH
6WDWH SUHVHQWHG IDEULFDWHG H[SHUW WHVWLPRQ\ GXULQJ WKH
FOHPHQF\SURFHHGLQJVDQGDUHWLUHGSROLFHRIILFHU&O\GH
.HHQDQIDOVHO\WHVWLILHGGXULQJWKHFOHPHQF\SURFHHGLQJV
  ,QRXUHTXDOO\GLYLGHGRSLQLRQGHQ\LQJIXUWKHUUHOLHIIRUWKH
SHWLWLRQHULQ:RUNPDQ)GDOORIWKHMXGJHVDJUHHG
WKDWWKHFRXUWFDQUHFRQVLGHUWKHSHWLWLRQLIWKHUHZDVDIUDXG
XSRQWKHFRXUWDVH[SODLQHGLQ'HPMDQMXNY3HWURYVN\
)GWK&LU7KHHOHPHQWVRIIUDXGVHWRXWLQ
'HPMDQMXNDUHFRQGXFW
      2QWKHSDUWRIDQRIILFHURIWKHFRXUW
      7KDWLVGLUHFWHGWRWKHmMXGLFLDOPDFKLQHU\lLWVHOI
      7KDW LV LQWHQWLRQDOO\ IDOVH ZLOIXOO\ EOLQG WR WKH
         WUXWKRULVLQUHFNOHVVGLVUHJDUGIRUWKHWUXWK
      7KDW LV D SRVLWLYH DYHUPHQW RU LV FRQFHDOPHQW
         ZKHQRQHLVXQGHUDGXW\WRGLVFORVH
      7KDWGHFHLYHVWKHFRXUW
,GDW
  $OWKRXJKWKH6WDWHDVVHUWHGWKDWDFOHPHQF\SURFHHGLQJZDV
DYDLODEOHLQZKLFK:RUNPDQFRXOGSUHVHQWHYLGHQFHLWGLG
     :RUNPDQY%HOO                   1RV         1RV                     :RUNPDQY%HOO        

QRW PDNHDVWDWHPHQWFRQFHUQLQJWKHFOHPHQF\SURFHHGLQJ              E\VD\LQJWKDWLWZDVHUURQHRXVRUIDOVH7KXVKHDWWDFNVWKH
WKDWZDVLQWHQWLRQDOO\IDOVHZLOIXOO\EOLQGWRWKHWUXWKRULQ      SURFHHGLQJVjVXEVWDQWLYHPHULWV:HDUHQRWDXWKRUL]HGWR
UHFNOHVVGLVUHJDUGIRUWKHWUXWK7DNLQJWKHDOOHJDWLRQVLQWKH      UHYLHZWKHVXEVWDQWLYHPHULWVRIDFOHPHQF\SURFHHGLQJ6HH
OLJKWPRVWIDYRUDEOHWR:RUNPDQLIWKHUHZDVDQ\IUDXGLW           'XYDOOY.HDWLQJ)GWK&LU2XU
ZRXOGKDYHEHHQXSRQWKHJRYHUQRURI7HQQHVVHHRUXSRQWKH            RQO\UHYLHZLVWRVHHWKDWWKHUHDUHVRPHPLQLPDOSURFHGXUDO
7%33                                                               VDIHJXDUGV  6HH )DXOGHU Y 7H[DV %RDUG RI 3DUGRQV DQG
                                                                      3DUROHV)GWK&LU,WLVQRWRXUGXW\
  'HDWKURZLQPDWHVKDYHQRFRQVWLWXWLRQDOULJKWWRFOHPHQF\          WR GHWHUPLQH WKH TXDOLW\ RI WKH HYLGHQFH FRQVLGHUHG E\ WKH
SURFHHGLQJV6HH+HUUHUD86DW7KH7HQQHVVHH            JRYHUQRURUKLVERDUG
*RYHUQRU KDV WKH SRZHU WR SDUGRQ JUDQW UHSULHYHV DQG
FRPPXWDWLRQVLQDOOFULPLQDOFDVHVH[FHSWLPSHDFKPHQW6HH             %HFDXVH ZH GHQ\ WKH PRWLRQ WR UHRSHQ DQG WR DSSRLQW D
7HQQ&RQVWDUW,,,7HQQ&RGH$QQ7KH         VSHFLDOPDVWHUWKHVHFRQGPRWLRQWRVWD\WKHH[HFXWLRQLVDOVR
7%33 PDNHV mXSRQ WKH UHTXHVW RI WKH JRYHUQRU           PHULWOHVV
QRQELQGLQJ UHFRPPHQGDWLRQV FRQFHUQLQJ DOO UHTXHVWV IRU
SDUGRQVUHSULHYHVRUFRPPXWDWLRQVl7HQQ&RGH$QQ             027,216'(1,('
D
  :H GR QRW VLW DV VXSHU DSSHDOV FRXUWV RYHU VWDWH
FRPPXWDWLRQ SURFHHGLQJV  ,Q 2KLR $GXOW 3DUROH $XWK Y
:RRGDUG86SOXUDOLW\RSLQLRQWKH
&RXUWKHOGm:HUHDIILUPRXUKROGLQJLQ'XPVFKDW>86
@WKDWµSDUGRQDQGFRPPXWDWLRQGHFLVLRQVKDYH
QRWWUDGLWLRQDOO\EHHQWKHEXVLQHVVRIFRXUWVDVVXFKWKH\DUH
UDUHO\ LI HYHU DSSURSULDWH VXEMHFWV IRU MXGLFLDO UHYLHZjl
+RZHYHUWKHFRXUWVSOLWRQWKHLVVXHRIZKHWKHUFOHPHQF\
SURFHHGLQJVZHUHVXEMHFWWRWKHFRQVWLWXWLRQDOVDIHJXDUGVRI
WKH'XH3URFHVV&ODXVH6HHLGDWsXVWLFH2j&RQQRUjV
FRQFXUULQJRSLQLRQFRQFOXGHGWKDWmVRPHPLQLPDOSURFHGXUDO
VDIHJXDUGV DSSO\ WR FOHPHQF\ SURFHHGLQJVl UHJDUGOHVV RI
ZKHWKHUWKHSRZHUWRJUDQWFOHPHQF\LVVROHO\HQWUXVWHGWRWKH
H[HFXWLYH,G2j&RQQRUsFRQFXUULQJ6KHLOOXPLQDWHG
WKH VWDQGDUG E\ VWDWLQJ msXGLFLDO LQWHUYHQWLRQ PLJKW IRU
H[DPSOHEHZDUUDQWHGLQWKHIDFHRIDVFKHPHZKHUHE\DVWDWH
RIILFLDO IOLSSHG D FRLQ WR GHWHUPLQH ZKHWKHU WR JUDQW
FOHPHQF\RULQDFDVH ZKHUH WKH6WDWHDUELWUDULO\GHQLHGD
SULVRQHUDQ\DFFHVVWRLWVFOHPHQF\SURFHVVl,G
  :RUNPDQ GRHV QRW DOOHJH WKDW KLV 7HQQHVVHH FOHPHQF\
SURFHHGLQJVIDLOHGWRPHHWWKHVWDQGDUGVHWRXWLQ:RRGDUG
+HDWWDFNVWKHHYLGHQFHSUHVHQWHGDWKLVFOHPHQF\SURFHHGLQJ
