                                                                                     5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
     8QLWHG6WDWHVY0LWFKHOO                         1R                       3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

                                                                                  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

  7KH8QLWHG6WDWHVDUJXHVWKDWWKHGLVWULFWFRXUWjVIDLOXUHWR                               )LOH 1DPH DS

FRPSO\ ZLWK 5XOH F$ GRHV QRW UHTXLUH D QHZ
VHQWHQFLQJKHDULQJXQOHVV0LWFKHOOFDQVKRZDFWXDOSUHMXGLFH
DV D UHVXOW RI WKH HUURU  :H GLVDJUHH  m,I WKH SURFHGXUHV   81,7('67$7(6&28572)$33($/6
>HVWDEOLVKHGE\5XOHF$@DUHQRWIROORZHGWKLVFRXUW                               )257+(6,;7+&,5&8,7
VKRXOGUHPDQGIRUUHVHQWHQFLQJl8QLWHG6WDWHVY6FKXOW]                                    BBBBBBBBBBBBBBBBB
)GWK&LU
   :H KDYH SUHYLRXVO\ UHFRJQL]HG WKH VLJQLILFDQW UROH WKDW
5XOH
VUHTXLUHPHQWVSOD\LQHQVXULQJDMXVWDGMXGLFDWLRQDW             81,7(' 67$7(6 2) $0(5,&$        ;
WKHVHQWHQFLQJKHDULQJE\UHTXLULQJOLWHUDOFRPSOLDQFHZLWK                         3ODLQWLII$SSHOOHH     
5XOHF6HH8QLWHG6WDWHVY7DFNHWW)G                                                  
 WK &LU   7KH OLWHUDO FRPSOLDQFH UHTXLUHPHQW                                               1R
mKHOSVWRHQVXUHWKDWGHIHQGDQWVDUHVHQWHQFHGRQWKHEDVLVRI                       Y                      
DFFXUDWHLQIRUPDWLRQDQGSURYLGHVDFOHDUUHFRUGIRUDSSHOODWH                                                !
                                                                                                             
FRXUWVSULVRQRIILFLDOVDQGDGPLQLVWUDWLYHDJHQFLHVZKRPD\              52%(57 /(( 0,7&+(//              
ODWHUEHLQYROYHGLQWKHFDVHl,GDW7KRVHFRQFHUQV                    'HIHQGDQW$SSHOODQW 
DUH QR OHVV SUHVHQW KHUH ZKHUH WKH GLVWULFW FRXUW IDLOHG WR                                       
GHWHUPLQHZKHWKHU0LWFKHOOHYHQUHDGKLVSUHVHQWHQFHUHSRUW                                                 
PXFKOHVVZKHWKHUKHZDVDIIRUGHGWKHRSSRUWXQLW\WRGLVFXVV                                                1
LWZLWKKLVFRXQVHO
                                                                                $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
   2XUKROGLQJWKDWGLVWULFWFRXUWVPXVWOLWHUDOO\FRPSO\ZLWK                 IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
5XOHF$GRHVQRWDOWHURXUORQJKHOGUXOHWKDWWKH\                  1Rn*HRUJH&6PLWK'LVWULFWsXGJH
QHHGQRWDIILUPDWLYHO\LQTXLUHDVWRZKHWKHUDGHIHQGDQWKDV
UHDG DQG GLVFXVVHG KLV SUHVHQWHQFH UHSRUW ZLWK FRXQVHO                                  $UJXHG0DUFK
DOWKRXJKZHXUJHGLVWULFWFRXUWVWRGLVFRXUDJHQRQPHULWRULRXV
DSSHDOVE\VLPSO\PDNLQJVXFKDQLQTXLU\DUHJXODUSDUWRIWKH                          'HFLGHGDQG)LOHG0DUFK
VHQWHQFHKHDULQJ%XWWKHIDFWWKDW5XOHF$LPSRVHV
RQO\DPRGHVWEXUGHQRQGLVWULFWFRXUWVLQQRZD\UHOLHYHV                %HIRUH0$57,1&KLHIsXGJH0225(&LUFXLWsXGJH
WKRVHFRXUWVRIWKHLUGXW\WRFRPSO\ZLWKWKH5XOHjVPDQGDWHV                         7$512:'LVWULFWsXGJH
6HH8QLWHG6WDWHVY0DQQL)GWK&LU
+HUHWKHGLVWULFWFRXUWKDGDGXW\WRGHWHUPLQHWKDW0LWFKHOO
DQG KLV DWWRUQH\ KDG UHDG DQG GLVFXVVHG 0LWFKHOOjV
SUHVHQWHQFHUHSRUW7KHIDLOXUHWRGRVRUHTXLUHVUHVHQWHQFLQJ
                                 ,,,
  )RU WKH IRUHJRLQJ UHDVRQ ZH YDFDWH 0LWFKHOOjV VL[\HDU
VHQWHQFHDQGUHPDQGIRUUHVHQWHQFLQJ                                        
                                                                               7KH +RQRUDEOH $UWKXU s 7DUQRZ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
                                                                          WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ



                                                                                                              
     8QLWHG6WDWHVY0LWFKHOO                      1R       1R                     8QLWHG6WDWHVY0LWFKHOO       

                     BBBBBBBBBBBBBBBBB                                 WKH SUHVHQWHQFH UHSRUW EXW GLG QRW DVN ZKHWKHU 0LWFKHOOjV
                                                                       FRXQVHOKDGGLVFXVVHGWKHUHSRUWZLWK0LWFKHOO7KHUHSRUW
                           &2816(/                                     KDGFDOFXODWHGDQRIIHQVHOHYHORIWZHQW\WKUHHDQGDFULPLQDO
                                                                       KLVWRU\ FDWHJRU\ RI ,9 UHVXOWLQJ LQ D VHQWHQFLQJ UDQJH
$5*8(''DYLGs*UDHII&ROXPEXV2KLRIRU$SSHOODQW               EHWZHHQILYH\HDUVDQGWHQPRQWKVDQGVHYHQ\HDUVDQGWKUHH
0LFKDHO s %XUQV $66,67$17 81,7(' 67$7(6                         PRQWKV0LWFKHOOjVFRXQVHOVWDWHGWKHUHZHUHQRREMHFWLRQV
$77251(<&ROXPEXV2KLRIRU$SSHOOHH21%5,()                     DQG WKDW DOWKRXJK KH KDG VRPH FRQFHUQV DERXW WKH UHSRUW
'DYLGs*UDHII&ROXPEXV2KLRIRU$SSHOODQW0LFKDHOs            mDIWHUDUHYLHZRIWKH)HGHUDO6HQWHQFLQJ*XLGHOLQHVDQGDIWHU
%XUQV $66,67$17 81,7(' 67$7(6 $77251(<                           H[WHQVLYH GLVFXVVLRQV ZLWK 7LQD $QNURP LQ WKH 3UREDWLRQ
&ROXPEXV2KLRIRU$SSHOOHH                                          'HSDUWPHQW>KHFRXOG@XQGHUVWDQGDQGDJUHHZLWKKRZVKH
                                                                       FDPHWRKHUHYDOXDWLRQRI WKLVSDUWLFXODUFDVHl0LWFKHOOjV
                     BBBBBBBBBBBBBBBBB                                 FRXQVHO WKHQ UHTXHVWHG WKDW WKH GLVWULFW FRXUW LPSRVH D
                                                                       VHQWHQFHmLQWKHPLQLPXPZLWKLQWKH*XLGHOLQHVWKDWDUHVHW
                         23,1,21                                       IRUWK E\ WKH 3UREDWLRQ 'HSDUWPHQW IRU VHYHUDO UHDVRQVl
                     BBBBBBBBBBBBBBBBB                                 UHODWLQJ WR 0LWFKHOOjV EDFNJURXQG  7KH GLVWULFW FRXUW
  %2<&( ) 0$57,1 s5 &KLHI sXGJH  5REHUW /HH               VHQWHQFHG0LWFKHOOWRVL[\HDUV
0LWFKHOO DSSHDOV KLV VL[\HDU VHQWHQFH IRU SRVVHVVLRQ ZLWK                                     ,,
LQWHQW WR GLVWULEXWH FRFDLQH  )RU WKH IROORZLQJ UHDVRQ ZH
9$&$7(KLVVHQWHQFHDQG5(0$1'WRWKHGLVWULFWFRXUWIRU                  0LWFKHOOUDLVHVIRXULVVXHVRQDSSHDODOORIZKLFKDGGUHVV
UHVHQWHQFLQJ                                                          DOOHJHGHUURUDWWKHVHQWHQFLQJKHDULQJ1RQHWKHOHVVEHFDXVH
                                                                       ZHDJUHHZLWK0LWFKHOOjVDUJXPHQWWKDWWKHGLVWULFW FRXUWjV
                                 ,                                    IDLOXUHWRFRPSO\ZLWK)HGHUDO5XOHRI&ULPLQDO3URFHGXUH
   2Q )HEUXDU\   )HGHUDO 'UXJ (QIRUFHPHQW                F$UHTXLUHVDQHZKHDULQJZHGHFOLQHWRDGGUHVVDQ\
$GPLQLVWUDWLRQ7DVN)RUFHDJHQWVUHFHLYHGLQIRUPDWLRQWKDW             RI0LWFKHOOjVRWKHUFODLPHGHUURUV
0LWFKHOO D VXVSHFWHG GUXJ FRXULHU ZDV IO\LQJ LQWR WKH          8QGHU5XOHF$WKHGLVWULFWFRXUWPXVWmYHULI\WKDW
&ROXPEXV2KLRDLUSRUWIURP/RV$QJHOHV$IWHU0LWFKHOO               WKH GHIHQGDQW DQG WKH GHIHQGDQWjV FRXQVHO KDYH UHDG DQG
GHSODQHGRIILFHUVDSSURDFKHGKLPLGHQWLILHGWKHPVHOYHVDQG          GLVFXVVHGWKHSUHVHQWHQFHUHSRUWl7KHGLVWULFWFRXUWQHHGQRW
DIWHU D IHZ PLQXWHV RI FRQYHUVDWLRQ DVNHG 0LWFKHOO IRU        PDNH DQ DIILUPDWLYH LQTXLU\ VR ORQJ DV LW FDQ VRPHKRZ
FRQVHQWWRVHDUFKKLVEDJ:KHQ0LWFKHOOWHQWDWLYHO\UHIXVHG         GHWHUPLQHWKDWGHIHQGDQWDQGFRXQVHOKDYHUHDGDQGGLVFXVVHG
WKHRIILFHUVDGYLVHGKLPWKH\KDGmPRUHLQIRUPDWLRQlDERXW             WKHUHSRUW6HH8QLWHG6WDWHVY6WHYHQV)G
KLP WKDQ KH UHDOL]HG  0LWFKHOO WKHQ DGPLWWHG KLV EDJ         WK &LU   0LWFKHOOjV FRXQVHOjV DUJXPHQWV DW WKH
FRQWDLQHG QDUFRWLFV DQG DFFRPSDQLHG WKH RIILFHUV WR DQ         VHQWHQFLQJ KHDULQJ LQGLFDWHG ERWK WKDW KH KDG UHDG WKH
DLUSRUWRIILFHZKHUHDVHDUFKUHYHDOHGILYHZUDSSHGSDFNDJHV           SUHVHQWHQFH UHSRUW DQG WKDW KH DQG 0LWFKHOO KDG GLVFXVVHG
FRQWDLQLQJDWRWDORIDOPRVWILYHSRXQGVRIFRFDLQH0LWFKHOO         0LWFKHOOjV EDFNJURXQG  7KH KHDULQJ WUDQVFULSW GRHV QRW
VXEVHTXHQWO\SOHDGHGJXLOW\WRRQHFRXQWRISRVVHVVLRQZLWK            KRZHYHUGHPRQVWUDWHWKDW0LWFKHOODQGKLVFRXQVHOmUHDGDQG
LQWHQWWRGLVWULEXWHDFRQWUROOHGVXEVWDQFH                           GLVFXVVHGlWKHUHSRUWLWVHOI$FFRUGLQJO\WKHGLVWULFWFRXUW
  $WWKHVHQWHQFLQJKHDULQJRQ2FWREHUWKHGLVWULFWFRXUW          FRXOGQRWKDYHPDGHVXFKDGHWHUPLQDWLRQDVUHTXLUHGE\5XOH
DVNHGGHIHQVHFRXQVHOZKHWKHU0LWFKHOOKDGDQ\REMHFWLRQVWR           F$
