           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


 %(76< / 1,&+2/6                ;
           3ODLQWLII$SSHOODQW    
              &URVV$SSHOOHH      
                                     1RV
                                     
           Y                       !
                                   
                                   
 086.,1*80 &2//(*(                
          'HIHQGDQW$SSHOOHH 
              &URVV$SSHOODQW 
                                   
                                  1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
    1Rn*HRUJH&6PLWK'LVWULFWsXGJH
                   $UJXHG6HSWHPEHU
              'HFLGHGDQG)LOHG)HEUXDU\
 %HIRUH0$57,1&KLHI&LUFXLWsXGJH0225(&LUFXLW
        sXGJH:,6(0$16HQLRU'LVWULFWsXGJH




    
     7KH +RQRUDEOH 7KRPDV $ :LVHPDQ sU 6HQLRU 8QLWHG 6WDWHV
'LVWULFW sXGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ



                                     
     1LFKROVY0XVNLQJXP                    1RV
      &ROOHJH

                     BBBBBBBBBBBBBBBBB
                           &2816(/
$5*8('  0LFKDHO 1 %XGHOVN\ 6,5.,1 3,1$/(6
0(=,%29	6&+:$57=&LQFLQQDWL2KLRIRU$SSHOODQW
'HQQLV'*UDQW$57(5	+$''(1&ROXPEXV2KLRIRU
$SSHOOHH  21 %5,()  0LFKDHO 1 %XGHOVN\ 0DUF '
0H]LERY6,5.,13,1$/(60(=,%29	6&+:$57=
&LQFLQQDWL2KLRIRU$SSHOODQW'HQQLV'*UDQW1DQF\s
0DQRXJLDQ $57(5 	 +$''(1 &ROXPEXV 2KLR IRU
$SSHOOHHsHQQLIHU6*ROGVWHLQ(48$/(03/2<0(17
23325781,7< &200,66,21 :DVKLQJWRQ '& IRU
$PLFXV&XULDH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
   :,6(0$16HQLRU'LVWULFWsXGJH3ODLQWLII$SSHOODQW'U
%HWV\ 1LFKROV m1LFKROVl DSSHDOV WKH GLVWULFW FRXUWjV
GLVPLVVDOIRUODFNRIVXEMHFWPDWWHUMXULVGLFWLRQRIKHU7LWOH
9,, HPSOR\PHQW GLVFULPLQDWLRQ FODLP  7KH GLVWULFW FRXUW
IRXQG WKDW 1LFKROV IDLOHG WR WLPHO\ ILOH D FKDUJH ZLWK WKH
(TXDO (PSOR\PHQW 2SSRUWXQLW\ &RPPLVVLRQ m((2&l
'HIHQGDQW$SSHOOHH 0XVNLQJXP &ROOHJH m0XVNLQJXPl
FURVV DSSHDOV WKH GLVWULFW FRXUWjV GHQLDO RI LWV PRWLRQ IRU
DWWRUQH\jVIHHV)RUWKHIROORZLQJUHDVRQVZH5(9(56(WKH
GLVWULFW FRXUWjV GHFLVLRQ JUDQWLQJ 0XVNLQJXPjV PRWLRQ WR
GLVPLVVDQG5(0$1'IRUFRQVLGHUDWLRQXSRQWKHPHULWVRI
WKHFODLP
                            ,)DFWV
  1LFKROVZDVDQDVVLVWDQWSURIHVVRUDW0XVNLQJXPORFDWHG
LQ 1HZ &RQFRUG 2KLR +HU FRQWUDFW KDG EHHQ UHQHZHG
DQQXDOO\WKUHHWLPHV2Q$XJXVW0XVNLQJXPQRWLILHG
1LFKROVWKDWLWZRXOGQRWUHQHZKHUFRQWUDFWIRUWKH
DFDGHPLF \HDU  2Q 0D\   o  GD\V DIWHU VKH
1RV                  1LFKROVY0XVNLQJXP         
                                                 &ROOHJH

UHFHLYHGWKHQRWLILFDWLRQRIQRQUHQHZDOo1LFKROVYLVLWHGWKH
2KLR&LYLO5LJKWV&RPPLVVLRQm2&5&lDQGVSRNHZLWKDQ
LQWDNHRIILFHUDWWKHVWDWHDJHQF\FODLPLQJWKDWVKHZDVQRWUH
KLUHGEHFDXVHVKHGLGQRWFRQIRUPWRWKHFROOHJHjVDFFHSWHG
VWHUHRW\SHRIIHPDOHIDFXOW\7KH2&5&RIILFHUDVNHG1LFKROV
DQXPEHURITXHVWLRQVDERXWKHUFRPSODLQWDQGDVVLVWHGKHULQ
WKHFRPSOHWLRQRIKHUFKDUJH1LFKROVKDQGZURWHWKHFKDUJH
RQ2&5&VWDWLRQHU\VLJQHGLWDQGFKHFNHGWKHER[QH[WWR
WKHVLJQDWXUHOLQHODEHOHGm,DOVRZDQWWKLVFKDUJHILOHGZLWK
WKH((2&l7KHFKDUJHZDVWKHQIRUZDUGHGWRWKH((2&
   2QsXO\WKH((2&LVVXHG1LFKROVDULJKWWRVXH
OHWWHU DQG 1LFKROV ILOHG VXLW RQ 2FWREHU  
0XVNLQJXPUHVSRQGHGE\ILOLQJDPRWLRQWRGLVPLVVDUJXLQJ
WKDWEHFDXVHQRFKDUJHZDVILOHGZLWKWKH2&5&XQGHU2KLR
ODZ WKH GD\ OLPLWDWLRQV SHULRG ZDV LQDSSOLFDEOH DQG
1LFKROVjFKDUJHZDVWKHUHIRUHXQWLPHO\,QUHVSRQVH1LFKROV
DUJXHG WKDW KHU DFWLRQV DW WKH 2&5& RIILFH FRQVWLWXWHG
mLQLWLDOO\ LQVWLWXWLQJ SURFHHGLQJVl ZLWK WKH VWDWH DJHQF\
HQWLWOLQJKHUWRDGD\OLPLWDWLRQVSHULRG
   7KH GLVWULFW FRXUW LQLWLDOO\ GHQLHG 0XVNLQJXPjV PRWLRQ
VWDWLQJ WKDW DOWKRXJK 7LWOH 9,, mGRHV QRW GHILQH WKH WHUP
µLQVWLWXWHGjl WKDW WHUP mLV EURDG HQRXJK WR HQFRPSDVV
SODLQWLIIjV LQLWLDO SUHVHQWDWLRQ RI KHU FKDUJH WR 2&5&
SHUVRQQHODWWKH2&5&RIILFHVl0XVNLQJXPILOHGDPRWLRQ
IRUUHFRQVLGHUDWLRQDUJXLQJWKDWWKHGLVWULFWFRXUWPLVDSSOLHG
WKHVWDWXWHE\RPLWWLQJWKHZRUGmSURFHHGLQJlIURPLWVFLWDWLRQ
WR7LWOH9,,0XVNLQJXPDUJXHGWKDWLWLVQRWHQRXJKIRUD
FRPSODLQDQW WR VLPSO\ SUHVHQW D FKDUJH UDWKHU WKH VWDWH
DJHQF\KDVWRFRQVLGHUWKHFKDUJHDVILOHGLQRUGHUWRVDWLVI\
WKHUHTXLUHPHQWWRLQVWLWXWHSURFHHGLQJV7KHGLVWULFWFRXUW
JUDQWHG 0XVNLQJXPjV PRWLRQ  ,Q LWV RSLQLRQ WKH FRXUW
FRQFOXGHGWKDWDOWKRXJKWKH2&5&SHUVRQQHOKHOSHG1LFKROV
SURFHVVKHUFKDUJHWKDWFKDUJHZDVILOHGRQO\ZLWKWKH((2&
DQG QRW ZLWK WKH 2&5& DQG WKXV SURFHHGLQJV ZHUH QRW
LQVWLWXWHG ZLWK WKH 2&5&  $FFRUGLQJO\ WKH GLVWULFW FRXUW
IRXQGWKDW1LFKROVIDLOHGWRILOHDWLPHO\((2&FKDUJHDQG
     1LFKROVY0XVNLQJXP                    1RV        1RV                  1LFKROVY0XVNLQJXP        
      &ROOHJH                                                                                                           &ROOHJH

WKXV JUDQWHG 0XVNLQJXPjV PRWLRQ WR GLVPLVV IRU ODFN RI                               %$WWRUQH\)HHV
VXEMHFWPDWWHUMXULVGLFWLRQ
                                                                         7KHGLVWULFWFRXUWGHQLHG0XVNLQJXPjVPRWLRQIRUDWWRUQH\
                   ,,6WDQGDUGRI5HYLHZ                            IHHV ZLWKRXW H[SODQDWLRQ  7KLV &RXUW UHYLHZV D GHFLVLRQ
                                                                       UHJDUGLQJ WKH DZDUG RI DWWRUQH\jV IHHV IRU DQ DEXVH RI
  7KLV &RXUW UHYLHZV D GLVWULFW FRXUWjV GHFLVLRQ WR JUDQW D   GLVFUHWLRQ6HH6HFUHWDU\'HSWRI/DERUY.LQJ)G
PRWLRQWRGLVPLVVIRUODFNRIVXEMHFWPDWWHUMXULVGLFWLRQGH           WK&LU
QRYR6HHsRHOVRQY8QLWHG6WDWHV)GWK
&LU  )DFWXDO ILQGLQJV PDGH E\ WKH GLVWULFW FRXUW LQ      7LWOH 9,, SHUPLWV WKH DZDUG RI DWWRUQH\ IHHV WR WKH
UHVROYLQJDPRWLRQWRGLVPLVVKRZHYHUDUHUHYLHZHGRQO\IRU          SUHYDLOLQJSDUW\LQD7LWOH9,,DFWLRQ
FOHDUHUURU6HHsRQHVY&LW\RI/DNHODQG)G
WK&LUTXRWLQJ*DIIRUGY*HQ(OHF&R)G            ,QDQ\DFWLRQRUSURFHHGLQJXQGHUWKLVWLWOHWKHFRXUWLQ
WK&LU                                               LWVGLVFUHWLRQPD\DOORZWKHSUHYDLOLQJSDUW\RWKHUWKDQ
                                                                         WKH &RPPLVVLRQ RU WKH 8QLWHG 6WDWHV D UHDVRQDEOH
  :KHQDGHIHQGDQWPRYHVWRGLVPLVVRQJURXQGVRIODFNRI                DWWRUQH\jVIHHLQFOXGLQJH[SHUWIHHVDVSDUWRIWKHFRVWV
VXEMHFWPDWWHU MXULVGLFWLRQmWKHSODLQWLIIKDVWKHEXUGHQRI           DQGWKH&RPPLVVLRQDQGWKH8QLWHG6WDWHVVKDOOEHOLDEOH
SURYLQJMXULVGLFWLRQLQRUGHUWRVXUYLYHWKHPRWLRQl0RLUY            IRUFRVWVWKHVDPHDVDSULYDWHSHUVRQ
*UHDWHU&OHYHODQG5HJjO7UDQVLW$XWK  )G
WK&LU,QUHYLHZLQJDEPRWLRQWKHFRXUW            86&HN
PD\FRQVLGHUHYLGHQFHRXWVLGHWKHSOHDGLQJVWRUHVROYHIDFWXDO
GLVSXWHVFRQFHUQLQJMXULVGLFWLRQDQGERWKSDUWLHVDUHIUHHWR           %HFDXVHZHUHYHUVHWKHGLVWULFWFRXUWjVGHFLVLRQGLVPLVVLQJ
VXSSOHPHQW WKH UHFRUG E\ DIILGDYLWV 5RJHUV Y 6WUDWWRQ         WKH FRPSODLQW IRU ODFN RI VXEMHFW PDWWHU MXULVGLFWLRQ
,QGXVWULHV  )G   WK &LU   +RZHYHU      0XVNLQJXPLVQRORQJHUWKHSUHYDLOLQJSDUW\DQGLWVPRWLRQ
ZKHUH D GHIHQGDQW DUJXHV WKDW WKH SODLQWLII KDV QRW DOOHJHG   IRUDWWRUQH\jVIHHVLVQRWULSH
VXIILFLHQW IDFWV LQ KHU FRPSOLDQW WR FUHDWH VXEMHFW PDWWHU
MXULVGLFWLRQ WKH WULDO FRXUW WDNHV WKH DOOHJDWLRQV LQ WKH                            ,9&RQFOXVLRQ
FRPSODLQWDVWUXHsRQHV)GDW
                                                                          %DVHGXSRQWKHIRUHJRLQJDQDO\VLVWKHMXGJPHQWDQGRUGHU
                         ,,,$QDO\VLV                               RI WKH GLVWULFW FRXUW FRQFHUQLQJ 0XVNLQJXPjV 0RWLRQ WR
                                                                       'LVPLVVLV5(9(56('DQG5(0$1'('IRUFRQVLGHUDWLRQ
              $6XEMHFW0DWWHUsXULVGLFWLRQ                         XSRQ WKH PHULWV RI WKH FODLP  $V D UHVXOW 0XVNLQJXPjV
                                                                       DSSHDORIWKHGLVWULFWFRXUWjVGHQLDORILWVPRWLRQIRUDWWRUQH\jV
   7KHGLVWULFWFRXUWZURQJO\GLVPLVVHG1LFKROVjFRPSODLQWIRU         IHHVLVQRWULSHDQGWKHGHFLVLRQRIWKHGLVWULFWFRXUWGHQ\LQJ
ODFN RI VXEMHFW PDWWHU MXULVGLFWLRQ  1LFKROV VDWLVILHG WKH    DWWRUQH\jVIHHVLV$)),50('RQWKDWEDVLV
DGPLQLVWUDWLYHSUHUHTXLVLWHVIRUEULQJLQJDQDFWLRQLQIHGHUDO
FRXUWXQGHU7LWOH9,,+HUDFWLRQVDWWKH2&5&FRQVWLWXWHG
LQLWLDOO\LQVWLWXWLQJSURFHHGLQJVZLWKWKH2&5&DQGWKXVKHU
ILOLQJ ZLWK WKH ((2& ZDV WLPHO\ JLYLQJ WKH GLVWULFW FRXUW
VXEMHFWPDWWHUMXULVGLFWLRQWRGHFLGHKHUFODLPRQWKHPHULWV
    1LFKROVY0XVNLQJXP                      1RV         1RV                   1LFKROVY0XVNLQJXP             
      &ROOHJH                                                                                                               &ROOHJH

FKDUJHZLWKERWKWKH((2&DQGWKHVWDWHDJHQF\1LFKROV                     %HIRUHDSODLQWLIIDOOHJLQJGLVFULPLQDWLRQXQGHU7LWOH9,,
GRHVQRWFRQFHGHHLWKHURIWKHVHLVVXHVLQWKLVFDVH,G                 FDQ EULQJ VXLW LQ IHGHUDO FRXUW VKH PXVW VDWLVI\ WZR
                                                                          DGPLQLVWUDWLYHSUHUHTXLVLWHVmE\ILOLQJWLPHO\FKDUJHVRI
   ,Q WKLV FDVH WKH VWDWH OLPLWDWLRQV SHULRG KDV GULYHQ WKH     HPSOR\PHQWGLVFULPLQDWLRQZLWKWKH((2&DQGUHFHLYLQJ
DJHQF\SURFHGXUHV7KHVHSURFHGXUHVVKRXOGQRWLQWXUQEH                DQGDFWLQJXSRQWKH((2&jVVWDWXWRU\QRWLFHVRIWKHULJKWWR
SHUPLWWHGWRVKRUWHQWKHIHGHUDOILOLQJSHULRG7KH6XSUHPH              VXHl3XFNHWWY7HQQHVVHH(DVWPDQ&R)G
&RXUW KDV VWDWHG WKDW LW LV LUUHOHYDQW IRU SXUSRVHV RI 7LWOH   WK&LUFLWLQJ86&HI0F'RQQHOO
9,,jV OLPLWDWLRQV SHULRG ZKHWKHU D VWDWH DJHQF\ GHHPV DQ         'RXJODV&RUSY*UHHQ863XUVXDQW
DJJULHYHGSDUW\jVVXEPLVVLRQXQWLPHO\XQGHUVWDWHODZ6HH               WR  86&  HH D FKDUJH LV WLPHO\ ZKHQ WKH
2VFDU 0D\HU 	 &R  86 DW    8QGHU WKH          DJJULHYHG ILOHG ZLWK WKH ((2& ZLWKLQ  GD\V DIWHU WKH
FLUFXPVWDQFHVRIWKLVFDVHIRULWWREHWUXO\LUUHOHYDQWZKHWKHU         DOOHJHGO\XQODZIXOSUDFWLFHRFFXUUHG$QH[FHSWLRQOLHVIRU
WKHVWDWHDJHQF\GHHPV1LFKROVjVXEPLVVLRQXQWLPHO\LWDOVR              FKDUJHVLQLWLDOO\LQVWLWXWHGZLWKDVWDWHDJHQF\
PXVWEHLUUHOHYDQWWKDWWKHVWDWHDJHQF\GHFOLQHGWRDFWRQKHU
FKDUJHV EHFDXVH LW ZDV EURXJKW RXWVLGH WKH VWDWXWH RI               >,@QDFDVHRIXQODZIXOHPSOR\PHQWSUDFWLFHZLWKUHVSHFW
OLPLWDWLRQV                                                              WR ZKLFK WKH SHUVRQ DJJULHYHG KDV LQLWLDOO\ LQVWLWXWHG
                                                                            SURFHHGLQJVZLWKDVWDWHRUORFDODJHQF\ZLWKDXWKRULW\WR
   ,Q*ULIILQY$LU3URGVDQG&KHPLFDOV,QF)G               JUDQW RU VHHN UHOLHI IURP VXFK SUDFWLFH RU WR LQVWLWXWH
WK&LUWKH(OHYHQWK&LUFXLWIRXQGWKDWZKHUHDVWDWH             FULPLQDOSURFHHGLQJVZLWKUHVSHFWWKHUHWRXSRQUHFHLYLQJ
IDLU HPSOR\PHQW SUDFWLFHV DJHQF\ ZDLYHG LWV ULJKW WR                 QRWLFHWKHUHRIVXFKFKDUJHVKDOOEHILOHGE\RURQEHKDOI
H[FOXVLYHO\SURFHVVDFODLPXQGHULWVZRUNVKDULQJDJUHHPHQW                 RIWKHSHUVRQDJJULHYHGZLWKLQWKUHHKXQGUHGGD\VDIWHU
ZLWKWKH((2&WKHFODLPZDVmGHHPHGWREHILOHGlZLWKWKH                  WKHDOOHJHGXQODZIXOHPSOR\PHQWSUDFWLFHRFFXUUHGRU
((2& RQ WKH GDWH RI WKH ZDLYHU HYHQ ZKHUH WKH VWDWH              ZLWKLQWKLUW\GD\VDIWHUUHFHLYLQJQRWLFHWKDWWKH6WDWHRU
FRPPLVVLRQIDLOHGWRH[SUHVVO\FRPPXQLFDWHDUHIHUUDOEHIRUH                ORFDODJHQF\KDVWHUPLQDWHGWKHSURFHHGLQJVXQGHUWKH
GD\  ,G DW  m:H FRQFOXGH WKDW WKH ((2&)&+5               6WDWHRUORFDOODZZKLFKHYHULVHDUOLHU
ZRUNVKDULQJDJUHHPHQWFUHDWHGDQLQVWDQWDQHRXVµFRQVWUXFWLYH
WHUPLQDWLRQj DQG WKDW WKH GLVWULFW FRXUW GLG QRW DEXVH LWV       ,G7KHFHQWUDOLVVXHLQWKLVFDVHLVZKHWKHUWKLVSURYLVLRQLV
GLVFUHWLRQ LQ ILQGLQJ WKDW *ULIILQ ILOHG D WLPHO\ ((2&            SURSHUO\ XQGHUVWRRG WR SURYLGH WKDW DQ LQGLYLGXDO ZKR KDV
FODLPl$GRSWLQJWKLVDSSURDFKZHILQGWKDW1LFKROVj0D\              SUHVHQWHGKHUZULWWHQDQGVLJQHGFKDUJHWRWKHVWDWHDJHQF\
 FKDUJH ZLWK WKH 2&5& ZDV FRQVWUXFWLYHO\                    KDV mLQLWLDOO\ LQVWLWXWHG SURFHHGLQJVl ZLWK WKDW DJHQF\
WHUPLQDWHGSXUVXDQWWRWKHZRUNVKDULQJDJUHHPHQWDQGVKRXOG               UHJDUGOHVVRIZKHWKHUWKHVWDWHDJHQF\WDNHVIXUWKHUDFWLRQRQ
EHGHHPHGILOHGZLWKWKH((2&RQWKDWVDPHGDWH&RQVLVWHQW              WKHFODLP
ZLWKIHGHUDOODZVWDWHODZ((2&UHJXODWLRQVDQGWKH2&5&
UHJXODWLRQVWKHOHJDOHIIHFWRI1LFKROVjLQWHUDFWLRQZLWKWKH               %HFDXVHWKH2&5&LVDQDXWKRUL]HGVWDWHDJHQF\XQGHU
2&5&ZDVWRLQVWLWXWHSURFHHGLQJVZLWKWKDWFRPPLVVLRQ                86&HHWKHGHWHUPLQDWLRQWXUQVRQZKHWKHU
GD\VDIWHU0XVNLQJXP&ROOHJHDOOHJHGO\GLVFULPLQDWHGDJDLQVW              1LFKROV LQLWLDWHG SURFHHGLQJV ZLWK WKH 2&5& ZKHQ VKH
KHU                                                                     SUHVHQWHGKHUFODLPWRDQ2&5&LQWDNHRIILFHU1LFKROVDQG
                                                                          WKH ((2& DUJXH WKDW 1LFKROVj DFWLRQV ZHUH VXIILFLHQW WR
                                                                          WULJJHU WKH GD\ ILOLQJ SHULRG XQGHU  86& H
                                                                          H0XVNLQJXPDVVHUWVWKDWWKH((2&DQG1LFKROVDUH
     1LFKROVY0XVNLQJXP                    1RV         1RV                        1LFKROVY0XVNLQJXP           
      &ROOHJH                                                                                                                  &ROOHJH

LPSURSHUO\ FRQVWUXLQJ 7LWOH 9,, VWDWXWRU\ ODQJXDJH                   :KHQ WKLV &RXUW UHDGV  86& HF LQ
VSHFLILFDOO\WKDWWKHODQJXDJHRI7LWOH9,,LVQRWDPELJXRXV           FRQMXQFWLRQ ZLWK WKH 6XSUHPH &RXUWjV GHFLVLRQ LQ /RYH Y
DQGWKH((2&PD\QRWFRQIHUEURDGHUULJKWVRQFODLPDQWVRU              3XOOPDQ &R LW LV FRPSHOOHG WR ILQG WKDW 1LFKROV SODLQO\
PRUHSUHMXGLFLDOUXOHVRQFKDUJHGSDUWLHVWKDQWKRVHHQDFWHG            mLQLWLDOO\ LQVWLWXWHG SURFHHGLQJVl ZLWK WKH 2&5& DQG VR
E\&RQJUHVV                                                          VDWLVILHGWKHUHTXLUHPHQWVIRUWKHGD\OLPLWDWLRQVSHULRG
                                                                        LQ86&HH/RYH86DW,Q
   ,WLVZHOOVHWWOHGODZWKDWLIWKH((2&IDLOVWRUHIHUDFKDUJH      /RYH WKH &RXUW KHOG WKDW HYHQ ZKHUH WKH VWDWXWH H[SOLFLWO\
WRWKHVWDWHFKDUJLQJDJHQF\WKH((2&jVPLVIHDVDQFHLVQRW             UHTXLUHGDVWDWHPHQWVHQWE\UHJLVWHUHGPDLOm>Q@RWKLQJLQWKH
KHOGDJDLQVWWKHSODLQWLII6HH7RRPEVY*UHHU6P\UQD,QF          ODQJXDJH LPSOLHV WKDW D VWDWH SURFHHGLQJ PD\ QRW EH
 ) 6XSS   0' 7HQQ m:KHQ D                 FRPPHQFHGE\DQRUDOFRPSODLQWWKHVWDWXWHJXDUGVDJDLQVW
FRPSODLQDQWKDVGRQHDOOWKDWWKH6XSUHPH&RXUWKDVVWDWHGLV           VWDWHSURFHHGLQJVWKDWDUHGLIILFXOWWRFRPPHQFHQRWDJDLQVW
UHTXLUHGRIKHULQILOLQJDFKDUJHZLWKWKH((2&VKHVKRXOG            RQHVWKDWDUHHDVLO\EHJXQl,GDWQ
QRW EH SHQDOL]HG EHFDXVH WKH ((2& LJQRUHV LWV RZQ
UHJXODWLRQV DQG IDLOV WR UHIHU WKH FKDUJH WR WKH DSSURSULDWH      7KHGLVWULFWFRXUWGLGQRWXQGHUWDNHDQDQDO\VLVRIWKHDERYH
VWDWHDJHQF\l0LWFKHOOY0LG&RQWLQHQW6SULQJ&R              FDVHODZ,QVWHDGWKHFRXUWUHOLHGRQWKHIDFWWKDW1LFKROVj
)GWK&LUm,WLVFOHDUWKDWSODLQWLIIVKRXOG       FKDUJHIRUPLQFOXGHVWKHZRUGVm((2&RQO\l7KHFRXUW
QRW ORVH KHU FDXVH RI DFWLRQ EHFDXVH RI WKH IDLOXUH RI WKH   QRWHGWKDWLWZDVXQFOHDUIURPWKHUHFRUGKRZWKHZRUGVFDPH
((2&WRUHIHUKHUFRPSODLQWWRWKHVWDWHDJHQF\l$FFRUG              WR DSSHDU XSRQ WKH IRUP  $W WKH VDPH WLPH KRZHYHU WKH
5REHUWVY$UL]RQD%RDUGRI5HJHQWV)GWK              FRXUW VWDWHG WKDW WKH SUHVHQFH RI WKH ZRUGV LQGLFDWHG WKDW
&LU m:H DUH    XQZLOOLQJ WR DOORZ WKH ((2&jV         1LFKROVGLGQRWILOHDSURFHHGLQJZLWKWKHVWDWHDJHQF\,Q
YLRODWLRQRILWVRZQSURFHGXUDOUHJXODWLRQVWRUHGRXQGWRWKH           HVVHQFH WKH GLVWULFW FRXUW FRQVWUXHG WKH HYLGHQFH DJDLQVW
SODLQWLIIjVGHWULPHQW7RUHTXLUHDSODLQWLIIWRSURWHFW   1LFKROV  7KH GLVWULFW FRXUWjV IDFWXDO LQIHUHQFH LV QRW
KHUVHOI DJDLQVW WKH ((2&jV SRVVLEOH  YLRODWLRQ RI LWV RZQ      DSSURSULDWHEHFDXVHHYHQWKHHYLGHQFHVHHPVWRLQGLFDWHWKDW
UHJXODWLRQV E\ VLPXOWDQHRXVO\ ILOLQJ D FKDUJH ZLWK WKH           LWZDVWKHLQWDNHRIILFHUZKRZURWHWKHZRUGVRQWKHIRUP
DSSURSULDWHVWDWHDJHQF\ZRXOGEHZKROO\LQFRQVLVWHQWZLWK              SUHVXPDEO\EHFDXVHWKH2&5&GRHVQRWLQYHVWLJDWHXQWLPHO\
WKHUDWLRQDOHRI/RYHlFLWLQJWR/RYHY3XOOPDQ&R              VWDWHODZFKDUJHV
86   :KLWH Y 'DOODV ,QGHSHQGHQW 6FKRRO
'LVWULFW)GWK&LU,QWKLVFDVHZHKDYH             7KHGLVWULFWFRXUWDOVRUHOLHGRQsRQHVY0HPSKLV%GRI
WKHEL]DUUHUHVXOWZKHUHWKHVWDWHFKDUJLQJDJHQF\KDVIDLOHG           (GXF 1R   :/  WK &LU 'HF 
WR UHIHU WKH FKDUJH WR LWVHOI IRU SXUSRVHV RI VWDWH ILOLQJ   XQSXEOLVKHGRSLQLRQ7KDWFDVHDURVHXQGHUGLIIHUHQW
)ROORZLQJ WKH UHDVRQLQJ LQ WKLV OLQH RI FDVHV ZH ILQG WKH    IDFWXDOFLUFXPVWDQFHV,QsRQHVWKHSODLQWLIIH[SOLFLWO\VWDWHG
PLVIHDVDQFHWKLVWLPHE\WKHVWDWHFKDUJLQJDJHQF\VKRXOG             LQKHUFRPSODLQWWKDWVKHGLGQRWILOHZLWKWKHDSSURSULDWHVWDWH
QRWEHKHOGDJDLQVWWKH3ODLQWLII7KHVSLULWDQGIRFXVRI7LWOH       RU ORFDO DJHQF\ DQG VKH GLG QRW FKHFN WKH ER[ WR ILOH WKH
9,,LVWRSURYLGHDYHQXHRIMXVWUHYLHZIRUOD\SHUVRQVZKR
KDYHVXIIHUHGDOOHJHGGLVFULPLQDWLRQZKHWKHUWKH\EHSXOOPDQ
FDURSHUDWRUVRUFROOHJHSURIHVVRUV6HH((2&Y&RPPHUFLDO
2IILFH3URGV&R86$OWKRXJKWKH                  
                                                                             9   WKH WRS RI WKH GUDIW FRPSODLQW LV D KDQGZULWWHQ QRWDWLRQ WKDW VD\V
VWDWHZRUNVKDULQJDJUHHPHQWVDUHGHVLJQHGWRDOORZVWDWHVD             m((2& RQO\l     $ W\SHZULWWHQ GUDIW ZDV VXEVHTXHQWO\ SUHSDUHG ZLWK WKH

mILUVW ELWHl DW UHVROYLQJ VXFK FDVHV PHFKDQLVPV FUHDWHG WR     WH[W LGHQWLFDO WR WKDW LQ KDQGZULWWHQ YHUVLRQ LQFOXGLQJ WKH ZRUGV m((2&
                                                                        RQO\l DW WKH WRS
       1LFKROVY0XVNLQJXP                       1RV           1RV                      1LFKROVY0XVNLQJXP            
         &ROOHJH                                                                                                                     &ROOHJH

  HIIHFWHG ZLWKLQ  GD\V IURP WKH GDWH RI WKH DOOHJHG                JLYHVWDWHVVXFKRSSRUWXQLW\PXVWQRWVWDQGLQWKHZD\RIWKH
  YLRODWLRQ                                                                    QHFHVVDULO\VLPSOHFODLPVPDNLQJSURFHGXUH6HH86&
                                                                                HF7KH1LQWK&LUFXLWKDVH[SODLQHGWKHJRDORIWKH
 &)5 E  7KLV FODULILHV WKDW mWR LQVWLWXWH            ZRUNVKDUHDJUHHPHQWVDVIROORZV
SURFHHGLQJVlIRUWKHSXUSRVHRILQYRNLQJWKHGD\ILOLQJ
SHULRGXQGHU86&HHDFKDUJLQJSDUW\QHHG                      3URKLELWLQJ DQ\ UHPHG\ WR FODLPDQWV ZKR ILOH
RQO\SUHVHQWDFKDUJHWRWKH2&5&DQGUHTXHVWWKDWWKHFKDUJH                     GLVFULPLQDWLRQ FRPSODLQWV ZLWK DQ DSSURSULDWH VWDWH RU
EHSUHVHQWHGWRWKH((2&,ILQVFHQDULRVOLNHWKHSUHVHQW                      IHGHUDODJHQF\ZLWKLQWKHGD\GHDGOLQHLVHQWLUHO\DW
FDVH WKH 2&5& LPPHGLDWHO\ ZDLYHV MXULVGLFWLRQ RYHU WKH                    RGGV ZLWK WKH SXUSRVH RI WKH ZRUNVKDULQJ DJUHHPHQW
FKDUJHDQGWKHILOLQJLVZLWKLQGD\VRIWKHLQFLGHQWWKH                    >EHWZHHQ1HYDGDjV)(3$DQGWKH((2&@DQGZLWK7LWOH
FKDUJHZLOOEHWLPHO\ILOHGZLWKWKH((2&                                        9,,  7KHVH DJUHHPHQWV DUH LQWHQGHG WR HOLPLQDWH
                                                                                  GXSOLFDWLRQRIHIIRUWEHWZHHQWKHDJHQFLHVDQGWRSURYLGH
  7KHSODLQODQJXDJHRI86&HHUHTXLUHV                         DQHIILFLHQWSURFHGXUHIRUFODLPDQWVWRVHHNUHGUHVVIRU
VLPSO\WKDWmSURFHHGLQJVlEHmLQLWLDOO\LQVWLWXWHGlZLWKDVWDWH                  WKHLU JULHYDQFHV  ,Q HQDFWLQJ 7LWOH 9,, &RQJUHVV DOVR
DJHQF\  7KH GHILQLWLRQ RI mLQVWLWXWHGl LV WR EH IRXQG LQ               LQWHQGHG WKH VWDWXWHjV SURFHGXUDO UHTXLUHPHQWV WR EH
VHFWLRQHFZKLFKSURYLGHVDVIROORZV                                OLEHUDOO\ FRQVWUXHG LQ RUGHU WR UHPHG\ JHQGHUEDVHG
                                                                                  GLVFULPLQDWLRQ LQ WKH ZRUNSODFH DQG WR SUHVHUYH D
  ,I DQ\ UHTXLUHPHQW IRU WKH FRPPHQFHPHQW RI >6WDWH@                       FODLPDQWjVIHGHUDOUHPHGLHVLQGLVFULPLQDWLRQVXLWV
  SURFHHGLQJV LV LPSRVHG E\ D 6WDWH    DXWKRULW\ RWKHU
  WKDQDUHTXLUHPHQWRIWKHILOLQJRIDZULWWHQDQGVLJQHG                      /DTXDJOLDY5LR+RWHO	&DVLQR,QF)G
  VWDWHPHQW RI WKH IDFWV XSRQ ZKLFK WKH SURFHHGLQJ LV                   WK&LUFLWDWLRQVRPLWWHG
  EDVHG WKH SURFHHGLQJ VKDOO EH GHHPHG WR KDYH EHHQ
  FRPPHQFHG IRU WKH SXUSRVHV RI WKLV VXEVHFWLRQ DW WKH                     1LFKROVFODLPVVKHZDQWHGWRILOHZLWKERWKWKHVWDWHDQG
  WLPH VXFK VWDWHPHQW LV VHQW E\ UHJLVWHUHG PDLO WR WKH                IHGHUDODJHQFLHVDQGLQGHHGWKHZRUNVKDUHDJUHHPHQWGLFWDWHV
  DSSURSULDWH6WDWHDXWKRULW\                                               WKDW2&5&RIILFLDOVPXVWHQFRXUDJHFODLPDQWVWRILOHZLWK
                                                                                ERWK  7KH LQFRQVLVWHQW PDUNLQJV RQ WKH 2&5& SUHSDUHG
HFLVDOVRFODULILHGE\WKHFDVHODZZLWKLQZKLFK                   GRFXPHQWVZKLFK0XVNLQJXPDUJXHVVKRZ1LFKROVLQWHQGHG
LW LV LQWHUSUHWHG  7KH LPSRVLWLRQ RI VWULFW SURFHGXUDO                 WRILOHRQO\ZLWKWKHIHGHUDODJHQF\LQIDFWVKRZRQO\WKDWWKH
WHFKQLFDOLWLHV mDUH SDUWLFXODUO\ LQDSSURSULDWH LQ D VWDWXWRU\             2&5&KDVIDLOHGWRHQDFWDVLPSOHFODLPVPDNLQJSURFHVVRI
VFKHPH LQ ZKLFK OD\PHQ XQDVVLVWHG E\ WUDLQHG      ODZ\HUV              WKHVRUWHQYLVLRQHGE\WKH&RXUWLQ/RYH86DWQ
LQLWLDWHWKHSURFHVVl/RYH86DWQ
                                                                                    
                                                                                     7KH :RUNVKDULQJ $JUHHPHQW ,, & LQFOXGHV WKH IROORZLQJ UHOHYDQW
                                                                                SURYLVLRQ ZKLFK VKRZV LWV SXUSRVH RI SURPRWLQJ ILOLQJ RI FODLPV ZLWK ERWK
     
     0XVNLQJXPjV EULHI DVVHUWV WKDW EHFDXVH 1LFKROV KDG D ODZ\HU KHU           WKH ((2& DQG WKH 2&5&
LQDELOLW\ WR IROORZ WKH WHFKQLFDO SURFHGXUHV FRUUHFWO\ LV LQH[FXVDEOH 7KH
DSSOLFDELOLW\ RI WKH 6XSUHPH &RXUWjV UXOLQJ LQ   /RYH WR D SDUWLFXODU FDVH LV       (DFK $JHQF\ ZLOO LQIRUP LQGLYLGXDOV RI WKHLU ULJKWV WR ILOH
QRW GHSHQGHQW XSRQ ZKHWKHU WKH SODLQWLII KDV EHHQ UHSUHVHQWHG E\ OHJDO              FKDUJHV ZLWK WKH RWKHU $JHQF\ DQG RU DVVLVW DQ\ SHUVRQ DOOHJLQJ
FRXQVHO   6HH
             +HLQLJHU Y &LW\ RI 3KRHQL[  )G   WK &LU               HPSOR\PHQW GLVFULPLQDWLRQ WR GUDIW D FKDUJH LQ D PDQQHU ZKLFK
DJUHHLQJ ZLWK 6DQFKH] Y 6WDQGDUG %UDQGV ,QF  )G  WK             ZLOO VDWLVI\ WKH UHTXLUHPHQWV RI ERWK DJHQFLHV WR WKH H[WHQW RI
&LU                                                                         WKHLU FRPPRQ MXULVGLFWLRQ
     1LFKROVY0XVNLQJXP                    1RV         1RV                   1LFKROVY0XVNLQJXP              
      &ROOHJH                                                                                                             &ROOHJH

DQG H[SUHVVO\ DGRSWHG E\ WKH 6L[WK &LUFXLW LQ )HUJXVRQ Y      ,WLVFOHDUIURPWKHUHFRUGWKDWWKH2&5&LQWDNHFOHUNVLPSO\
.URJHU &R  )G   WK &LU                  IROORZHGWKHDJHQF\SURFHGXUHVVSHFLILFDOO\WKRVHRXWOLQHGLQ
LQFRUSRUDWLQJ/RYHE\UHIHUHQFH                                      WKH ZRUNVKDULQJ DJUHHPHQW IRU FKDUJHV GHHPHG XQWLPHO\
                                                                        XQGHUVWDWHODZZKHQVKHGLGQRWHVWDEOLVKDQ2&5&FDVH
   $V QRWHG E\ ERWK SDUWLHV DQ DJJULHYHG SHUVRQ GRHV QRW      QXPEHU IRU 1LFKROVj FRPSODLQW  7KH 2&5& 5HJLRQDO
QHFHVVDULO\KDYHWRILOHDVWDWHFKDUJHZLWKLQWKHVWDWHVWDWXWH        'LUHFWRU VLJQHG D FKDUJH WUDQVPLWWDO IRUP GDWHG 0D\ 
RI OLPLWDWLRQV SHULRG WR SUHVHUYH WKH ((2& GD\ ILOLQJ        LQ ZKLFK KH FKHFNHG WKH ER[ HQWLWOHG m $JHQF\
SHULRG  0RKDVFR &RUS Y 6LOYHU  86   Q      ZDLYHV>WKHULJKWWRLQLWLDOSURFHVVLQJRIWKHFKDUJH@l7KH
VHHHJsRQHVY$LUFR&DUELGH&KHPLFDO&R             VLPSOHIDFWWKDWWKHVWDWHDJHQF\ZDLYHGLWVULJKWWRSURFHVV
)G   WK &LU   )HGHUDO FRXUWV KDYH       WKHFKDUJHXQGHUVWDWHODZVKRXOGQRWDIIHFW1LFKROVjULJKWV
XQLIRUPO\KHOGWKDWHYHQDQXQWLPHO\VWDWHILOLQJFDQJLYHULVH         XQGHUIHGHUDOODZ
WRWKHGD\IHGHUDOILOLQJSHULRG6HH2VFDU0D\HU	&R
Y(YDQV86KROGLQJWKDWmHYHQLID                 &)5 E VWDWHV WKDW D FKDUJH LV GHHPHG
VWDWH ZHUH WR PDNH WLPHOLQHVV D SUHFRQGLWLRQ IRU                 WLPHO\ILOHGZLWKWKH((2&LImDZULWWHQDQGVLJQHGVWDWHPHQW
FRPPHQFHPHQWUDWKHUWKDQIROORZWKHPRUHW\SLFDOSDWWHUQRI            RIIDFWVXSRQZKLFKWKHFKDUJHLVEDVHGZDVVHQWWRWKH)(3
PDNLQJ XQWLPHOLQHVV DQ DIILUPDWLYH GHIHQVH D VWDWH               DJHQF\E\UHJLVWHUHGPDLORUZDVRWKHUZLVHUHFHLYHGE\WKH
SURFHHGLQJZLOOEHGHHPHGFRPPHQFHGlIRUSXUSRVHVRI7LWOH              )(3DJHQF\lZLWKLQGD\VIURPWKHDOOHJHGYLRODWLRQ,Q
9,,                                                                   LWV DPLFXV EULHI WKH ((2& DUJXHV WKDW ZKHQ WKH 2&5&
                                                                        RIILFHUDFFHSWHG1LFKROVjFKDUJHLWZDVmRWKHUZLVHUHFHLYHG
   ,WLVGLIILFXOWWRUHFRQFLOHWKLVOLQHRIFDVHVZLWKWKHGLVWULFW    E\ WKH )(3 DJHQF\l  7KH ((2&jV LQWHUSUHWDWLRQ RI WKLV
FRXUWjVGHFLVLRQWROLPLW1LFKROVjFODLPEHFDXVHRIWKH2KLR            UHTXLUHPHQWLVHQWLWOHGWRJUHDWGHIHUHQFH&RPPHUFLDO2IILFH
VWDWXWHRIOLPLWDWLRQVDQGLQSDUWLFXODUWKHUHVXOWLQJDJHQF\         3URGV86DWFLWLQJWR2VFDU0D\HU	&R
SURFHGXUHV1LFKROVDSSHDUVWRKDYHPHWHYHU\SUHUHTXLVLWH             86 DW m>7@KH ((2&jV LQWHUSUHWDWLRQ RI DPELJXRXV
XQGHUIHGHUDOODZWRDVVHUWKHUFODLP6KHVXEPLWWHGDZULWWHQ         ODQJXDJH QHHG RQO\ EH UHDVRQDEOH WR EH HQWLWOHG WR
DQG VLJQHG VWDWHPHQW RI IDFWV WR WKH VWDWH DJHQF\  6HH    GHIHUHQFHl5DVLPDVY0LFKLJDQ'HSjWRI0HQWDO+HDOWK
86&HF,QDFFRUGDQFHZLWKWKH2KLROLPLWDWLRQV           )GWK&LU((2&UHJXODWLRQVH[SODLQ
SHULRG KRZHYHU WKH 2&5& DSSDUHQWO\ GRHV QRW WUHDW D           WKHUHTXLUHPHQWVIRUGXDOILOLQJDVIROORZV
FRPSODLQW UHFHLYHG PRUH WKDQ VL[ PRQWKV DIWHU DQ DOOHJHG
LQFLGHQW DV D FKDUJH ILOHG ZLWK WKH 2&5&  $V D UHVXOW        :KHQDFKDUJHLVLQLWLDOO\SUHVHQWHGWRDQ)(3DJHQF\
FRPSODLQDQWV LQ 2KLR DUH HIIHFWLYHO\ OLPLWHG WR WKH VWDWH         DQG WKH FKDUJLQJ SDUW\ UHTXHVWV WKDW WKH FKDUJH EH
VWDWXWHRIOLPLWDWLRQVSHULRG7KLVUHVXOWLVDWRGGVZLWKWKH           SUHVHQWHGWRWKH&RPPLVVLRQWKHFKDUJHZLOOEHGHHPHG
FDVHV WKDW GHHP LUUHOHYDQW VWDWH VWDWXWHV RI OLPLWDWLRQV LQ       WREHILOHGZLWKWKH&RPPLVVLRQXSRQWKHH[SLUDWLRQRI
GHWHUPLQLQJ HQWLWOHPHQW WR WKH GD\ ILOLQJ SHULRG  6HH        RUZKHUHDSSURSULDWHGD\VDIWHUDZULWWHQDQG
&RPPHUFLDO2IILFH3URGV86DW                         VLJQHGVWDWHPHQWRIIDFWXSRQZKLFKWKHFKDUJHLVEDVHG
                                                                          ZDV VHQWWRWKH)(3DJHQF\E\UHJLVWHUHGPDLORUZDV
  0XVNLQJXP XUJHV DQG WKH GLVWULFW FRXUW KHOG WKDW WR           RWKHUZLVH UHFHLYHG E\ WKH )(3 DJHQF\ RU XSRQ WKH
LQLWLDOO\LQVWLWXWHDSURFHHGLQJDQDJJULHYHGSDUW\PXVWQRW             WHUPLQDWLRQRI)(3DJHQF\SURFHHGLQJVRUXSRQZDLYHU
RQO\VXEPLWDFKDUJHWRDVWDWHDJHQF\EXWWKHVWDWHDJHQF\              RI WKH )(3 DJHQF\jV ULJKW WR H[FOXVLYHO\ SURFHVV WKH
PXVWDFFHSWDQGFKDUDFWHUL]HWKHVXEPLVVLRQDVDILOHGFKDUJH            FKDUJH ZKLFKHYHU LV HDUOLHVW  6XFK ILOLQJ LV WLPHO\ LI
