           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


 0,&.(< '2:1,( '$9,'              ;
 :+($7                             
          3ODLQWLIIV$SSHOODQWV 
                                      1R
                                    
            Y                       !
                                    
                                    
 &,7< 2) 0,''/(%85*                 
 +(,*+76HWDO                   
                    'HIHQGDQWV 
                                    
                                    
 5,&+$5' 3 6,(*(/ 7+20$6          
 6&+1(,'(5                         
         'HIHQGDQWV$SSHOOHHV 
                                    
                                   1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
   1Rn/HVOH\%URRNV:HOOV'LVWULFWsXGJH
                      $UJXHGsXQH
              'HFLGHGDQG)LOHG$XJXVW
%HIRUH6,/(5DQG0225(&LUFXLWsXGJHV67$))25'
                    'LVWULFWsXGJH

    
     7KH +RQRUDEOH :LOOLDP + 6WDIIRUG sU 8QLWHG 6WDWHV 'LVWULFW sXGJH
IRU WKH 1RUWKHUQ 'LVWULFW RI )ORULGD VLWWLQJ E\ GHVLJQDWLRQ



                                    
     'RZQLHHWDOY&LW\RI                    1R      1R                         'RZQLHHWDOY&LW\RI       
      0LGGOHEXUJ+JWVHWDO                                                                          0LGGOHEXUJ+JWVHWDO

                    BBBBBBBBBBBBBBBBB                               DVVHUWHG WKUHH GLIIHUHQW OHJDO WKHRULHV DQG DVNHG IRU WZR
                                                                    GLIIHUHQWW\SHVRIGDPDJHV7KHDSSHOODWHFRXUWDFFRUGLQJO\
                         &2816(/                                    GLVPLVVHG WKH DSSHDO DQG UHPDQGHG WKH FDVH WR WKH GLVWULFW
                                                                    FRXUWIRUIXUWKHUSURFHHGLQJV
$5*8('  .HQQHWK ' 0\HUV )5,('0$1 	
$662&,$7(6 &OHYHODQG 2KLR IRU $SSHOODQWV  'DQD s          7KHFRXUWLQ*HQHUDO$FTXLVLWLRQGLGQRWDGGUHVVWKHDVSHFW
0DUWLQ81,7('67$7(6'(3$570(172)s867,&(                        RID5XOHELVVXHWKDWLVEHIRUHWKLVFRXUWWKDWLVZKHWKHU
:DVKLQJWRQ'&IRU$SSHOOHHV21%5,().HQQHWK'             WKH GLVWULFW FRXUW FRPSOLHG ZLWK WKH UXOHjV WHFKQLFDO
0\HUV$YHU\6)ULHGPDQ)5,('0$1	$662&,$7(6                    UHTXLUHPHQWV3UHVXPDEO\WKHGLVWULFWFRXUWjVFHUWLILFDWLRQLQ
&OHYHODQG2KLRIRU$SSHOODQWV'DQDs0DUWLQ0DUN%           *HQHUDO $FTXLVLWLRQ FRQWDLQHG WKH UHTXLUHG mH[SUHVV
6WHUQ 81,7(' 67$7(6 '(3$570(17 2) s867,&(                    GHWHUPLQDWLRQl DQG mH[SUHVV GLUHFWLRQl FRPSRQHQWV
:DVKLQJWRQ'&IRU$SSHOOHHV                                  1RQHWKHOHVVLQWKHFRQWH[WRIWKHVHSDUDEOHFODLPLVVXHWKH
                                                                    *HQHUDO $FTXLVLWLRQ FRXUW ZURWH m7KH ILUVW VWHS LQ
   0225(sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK          FHUWLILFDWLRQHQWU\RISDUWLDOILQDOMXGJPHQWLVVDWLVILHGZKHUH
6,/(5sMRLQHG67$))25''sSSGHOLYHUHG          VRPHGHFLVLRQPDGHE\WKHGLVWULFWFRXUWXOWLPDWHO\GLVSRVHV
DVHSDUDWHFRQFXUULQJRSLQLRQ                                      RIRQHRUPRUHEXWIHZHUWKDQDOORIWKHFODLPVRUSDUWLHVLQD
                                                                    PXOWLFODLPPXOWLSDUW\DFWLRQl*HQ$FTXLVLWLRQ)GDW
                    BBBBBBBBBBBBBBBBB                               
                        23,1,21                                        +HUHLQWKHFRQWH[WRIDQmH[SUHVVGLUHFWLRQlLVVXHQRWLQ
                    BBBBBBBBBBBBBBBBB                               WKHFRQWH[WRIVHSDUDEOHFODLPVLVVXHWKHPDMRULW\TXRWHVWKH
                                                                    DERYHVHQWHQFHLQ*HQHUDO$FTXLVLWLRQVXJJHVWLQJWKDWWKH
   .$5(1 1(/621 0225( &LUFXLW sXGJH  3ODLQWLII             mH[SUHVVGLUHFWLRQlFRPSRQHQWRI5XOHELVVDWLVILHGZKHQ
$SSHOODQW0LFNH\'RZQLHm'RZQLHlDSSHDOVWZRRUGHUVRI            mVRPHGHFLVLRQPDGHE\WKHGLVWULFWFRXUWXOWLPDWHO\GLVSRVHV
WKH GLVWULFW FRXUW GLVPLVVLQJ KLV %LYHQV DFWLRQ DJDLQVW      RIRQHRUPRUHEXWIHZHUWKDQDOORIWKHFODLPVRUSDUWLHVl
'HIHQGDQWV$SSHOOHHV5LFKDUG36LHJHOm6LHJHOlDQDJHQW         6XSUDSHPSKDVLVVXSSOLHGE\PDMRULW\,QP\RSLQLRQ
RIWKH8QLWHG6WDWHV&XVWRPV6HUYLFHDQG7KRPDV6FKQHLGHU          WKHPDMRULW\KDVWDNHQWKHODQJXDJHIURP*HQHUDO$FTXLVLWLRQ
m6FKQHLGHUl DQ DJHQW RI WKH 8QLWHG 6WDWHV %XUHDX RI      RXWRIFRQWH[WDQGE\GRLQJVRKDVXQGHUPLQHG5XOHEjV
$OFRKRO7REDFFRDQG)LUHDUPVm$7)l,Q'RZQLH            GLUHFWLRQWKDWmDQ\RUGHURURWKHUIRUPRIGHFLVLRQKRZHYHU
ILOHGDFRPSODLQWLQIHGHUDOGLVWULFWFRXUWDJDLQVWWKH&LW\RI     GHVLJQDWHGZKLFKDGMXGLFDWHVIHZHUWKDQDOOWKHFODLPVRUWKH
0LGGOHEXUJ+HLJKWVDQXPEHURIVWDWHRIILFLDOVDQG6LHJHO         ULJKWV DQG OLDELOLWLHV RI IHZHU WKDQ DOO WKH SDUWLHV VKDOO QRW
DQG 6FKQHLGHU DOOHJLQJ YDULRXV YLRODWLRQV RI KLV             WHUPLQDWHWKHDFWLRQDVWRDQ\RIWKHFODLPVRUSDUWLHVlLIWKH
FRQVWLWXWLRQDO DQG VWDWXWRU\ ULJKWV LQ FRQQHFWLRQ ZLWK KLV   GLVWULFWFRXUWKDVIDLOHGWRFRPSO\ZLWKHLWKHUWKHmH[SUHVV
UHVLJQDWLRQDVDQXQGHUFRYHULQIRUPDQWIRUWKH8QLWHG6WDWHV        GLUHFWLRQl RU mH[SUHVV GHWHUPLQDWLRQl FRPSRQHQW RI 5XOH
&XVWRPV6HUYLFH(VVHQWLDOO\'RZQLHFODLPHGWKDW6LHJHO           E
UHWDOLDWHG DJDLQVW KLP IRU FRPPHQWV KH PDGH LQ KLV
UHVLJQDWLRQ OHWWHU E\ FUHDWLQJ PDLQWDLQLQJ DQG WKHQ
GLVVHPLQDWLQJ WR 6FKQHLGHU DQG WKH VWDWH RIILFLDOV D
mEODFNEDOOl PHPR IDOVHO\ VWDWLQJ WKDW 'RZQLH ZDV QRW D
UHOLDEOHLQIRUPDQW
       'RZQLHHWDOY&LW\RI                        1R        1R                      'RZQLHHWDOY&LW\RI       
         0LGGOHEXUJ+JWVHWDO                                                                             0LGGOHEXUJ+JWVHWDO

                                   &                                          7KH 8QLWHG 6WDWHV VXEVWLWXWHG LWVHOI IRU 6LHJHO DQG
                                                                             6FKQHLGHUDVIHGHUDOHPSOR\HHVDFWLQJLQWKHVFRSHRIWKHLU
   (YHQWKRXJKMXULVGLFWLRQOLHVLQWKLVFRXUWZKHWKHURUQRW                HPSOR\PHQWIRUDOOWKHFODLPVLQ'RZQLHjVFRPSODLQWH[FHSW
WKHGLVWULFWFRXUWVDWLVILHGWKHWHFKQLFDOUHTXLUHPHQWVRI5XOH              WKRVH FODLPV DOOHJLQJ FRQVWLWXWLRQDO YLRODWLRQV  6LHJHO DQG
EWKHPDMRULW\GHFLGHVWKDWLQIDFWWKHGLVWULFWFRXUWjV              6FKQHLGHU WKHQ PRYHG WR GLVPLVV 'RZQLHjV FRQVWLWXWLRQDO
6HSWHPEHU WK msXGJPHQW (QWU\l FRPELQHG ZLWK LWV                     FODLPVDJDLQVWWKHPIRUIDLOXUHWRVWDWHDFODLPXQGHU)HGHUDO
'HFHPEHUWKRUGHUH[SUHVVO\GHWHUPLQLQJWKDWWKHUHZDVQR                  5XOHRI&LYLO3URFHGXUHE&RQFOXGLQJWKDW'RZQLH
MXVW UHDVRQ IRU GHOD\ VDWLVILHG WKRVH UHTXLUHPHQWV  7KH            FRXOG QRW VHHN UHOLHI DJDLQVW WKH GHIHQGDQWV XQGHU %LYHQV
PDMRULW\WKXVGHFLGHVWKDWWKHUHTXLUHGmH[SUHVVGHWHUPLQDWLRQ               EHFDXVH&RQJUHVVKDGHQDFWHGDQHODERUDWHUHPHGLDOVFKHPH
WKDW WKHUH LV QR MXVW UHDVRQ IRU GHOD\l DQG WKH UHTXLUHG           LQWKH3ULYDF\$FWRIWRDGGUHVVFODLPVUHJDUGLQJWKH
mH[SUHVV GLUHFWLRQ IRU WKH HQWU\ RI MXGJPHQWl QHHG QRW EH           FUHDWLRQPDLQWHQDQFHDQGGLVVHPLQDWLRQRIIDOVHUHFRUGVE\
LQFOXGHGLQWKHVDPHFRXUWRUGHUEXWFDQLQVWHDGEHSDUVHG                 IHGHUDO DJHQF\ HPSOR\HHV WKH GLVWULFW FRXUW LQ WZR RUGHUV
IURPWZRVHSDUDWHGRFXPHQWVHQWHUHGPRQWKVDSDUW%HFDXVH                   IXOO\JUDQWHGWKHGHIHQGDQWVjPRWLRQWRGLVPLVV'RZQLHQRZ
,WKLQNWKHPDMRULW\jVGHFLVLRQFRXOGXQGHUPLQHWKHFHUWDLQW\                DSSHDOV WKH GLVWULFW FRXUWjV GLVPLVVDO RI KLV FRQVWLWXWLRQDO
ZKLFKLVWKHYHU\DLPRI5XOHE,ZRXOGQRWPDNHVXFK                  FODLPV DJDLQVW 6LHJHO DQG 6FKQHLGHU  )RU WKH IROORZLQJ
DGHFLVLRQZKHUHDVLQWKLVFDVHWKHGHFLVLRQLVXQQHFHVVDU\               UHDVRQVZH$)),50WKHRUGHUVRIWKHGLVWULFWFRXUW
WRDILQGLQJRIMXULVGLFWLRQ
                                                                                                  ,%$&.*5281'
  0RUHRYHU,TXHVWLRQWKHPDMRULW\jVUHOLDQFHRQDVHQWHQFH
WDNHQIURP*HQHUDO$FTXLVLWLRQ,QFY*HQ&253,QF                     2Q sXQH   0LFNH\ 'RZQLH DQG 'DYLG :KHDW
)GWK&LU,QWKDWFDVHWKLVFRXUW              m:KHDWl ILOHG D FRPSODLQW LQ WKH 8QLWHG 6WDWHV 'LVWULFW
FRQVLGHUHG ZKHWKHU WKH mMXGJPHQWl FHUWLILHG IRU DSSHDOD              &RXUWIRUWKH1RUWKHUQ'LVWULFWRI2KLRDJDLQVWWKH&LW\RI
MXGJPHQW RQ WKH GDPDJHV HOHPHQW EXW QRW WKH OLDELOLW\               0LGGOHEXUJ +HLJKWV 0LGGOHEXUJ +HLJKWV 3ROLFH 2IILFHU
HOHPHQW RI WKH SODLQWLIIjV FDVHXOWLPDWHO\ GLVSRVHG RI D            *OHQQ%ODWQLFD$VKWDEXOD&RXQW\3URVHFXWRU7KRPDV6DUWLQL
VHSDUDEOHFODLP2QUHYLHZWKLVFRXUWGHWHUPLQHGWKDWWKH                  &X\DKRJD &RXQW\ &KLHI $VVLVWDQW 3URVHFXWRU &DUPHQ
GLVWULFWFRXUWZDVmSRZHUOHVVlWRFHUWLI\LWVRUGHUUHJDUGLQJ                0DULQR86&XVWRPV6HUYLFH$JHQW5LFKDUG6LHJHO$7)
GDPDJHV  %HFDXVH WKH SODLQWLIIjV DOOHJDWLRQV FRQFHUQHG D             $JHQW 7KRPDV 6FKQHLGHU DQG IHGHUDO DQG VWDWH ODZ
VLQJOHDJJUHJDWHRIRSHUDWLYHIDFWVWKHFLUFXLWFRXUWIRXQGWKDW            HQIRUFHPHQW RIILFHUV msRKQ 'RHV l  sRLQW $SSHQGL[
VHSDUDEOHFODLPVZHUHQRWSUHVHQWHYHQWKRXJKWKHSODLQWLII                  ms$l DW  &RPSO  7KH FRPSODLQW DOOHJHG WKDW
                                                                             'RZQLH ZRUNHG DV DQ mXQGHUFRYHU RSHUDWLYHl IRU WKH 86
                                                                             &XVWRPV 6HUYLFH LQ  mLGHQWLI\LQJ VHYHUDO PDMRU 86
                                                                             FRUSRUDWLRQV WKDW ZHUH IXQQHOLQJ PLOOLRQV RI GROODUV WR
EHJXQ WR UXQ DQG KDYH EHKDYHG DFFRUGLQJO\    ,G
                                                                             &RPPXQLVWJRYHUQPHQWVRI9LHWQDPDQG&KLQDLQYLRODWLRQ
                                                                            RI IHGHUDO ODZl IRU DQ XQGHUFRYHU RSHUDWLRQ RI WKH 86
      ,Q WKLV FDVH IRU H[DPSOH 'RZQLH PLJKW KDYH ZRQGHUHG ZKHWKHU D        7UHDVXU\ 'HSDUWPHQW NQRZQ DV m2SHUDWLRQ /HDWKHUQHFNl
mMXGJPHQWl WKDW ZDV D QXOOLW\ ZKHQ HQWHUHG FRXOG ODWHU VHUYH DV WKH
H[SUHVV HQWU\ RI MXGJPHQW WULJJHULQJ WKH WLPH IRU DSSHDO XQGHU 5XOH E
+DG KH DVVXPHG WKDW WKH msXGJPHQW (QWU\l ZKLFK ZDV LQHIIHFWLYH ZKHQ
HQWHUHG LQ 6HSWHPEHU FRXOG QRW EH UHVXUUHFWHG DV D YDOLG HQWU\ RI
MXGJPHQW LQ 'HFHPEHU KH PLJKW KDYH GHOD\HG ILOLQJ KLV DSSHDO ZDLWLQJ
IRU HQWU\ RI DQRWKHU MXGJPHQW
        'RZQLHHWDOY&LW\RI                        1R        1R                          'RZQLHHWDOY&LW\RI        
         0LGGOHEXUJ+JWVHWDO                                                                                 0LGGOHEXUJ+JWVHWDO

s$DW&RPSO,QsXQH'RZQLHFODLPHG                 OLDELOLWLHVRIDOOWKHSDUWLHVl)HG5&LY3E,QHIIHFW
WKDW KH UHVLJQHG DV DQ mXQGHUFRYHU RSHUDWLYHl RYHU                    WKHmsXGJPHQW(QWU\lZDVDQXOOLW\
GLVDJUHHPHQWVEHWZHHQ'RZQLHDQG86&XVWRPVRIILFLDOVDV
WR GHFLVLRQV PDGH LQ FRQQHFWLRQ ZLWK m2SHUDWLRQ                          2Q 2FWREHU   SUHVXPDEO\ UHFRJQL]LQJ WKDW WKH
/HDWKHUQHFNl'RZQLHjVOHWWHURIUHVLJQDWLRQVWDWHGLQWHUDOLD            GLVWULFWFRXUWjVmsXGJPHQW(QWU\lGLGQRWWHUPLQDWHWKHDFWLRQ
WKDW                                                                        DVWR6LHJHODQG6FKQHLGHUDQGWKDWLWGLGQRWVWDUWWKHDSSHDO
                                                                             FORFN UXQQLQJ 'RZQLH ILOHG D 5XOH E PRWLRQ IRU
    ,ILQGLWGLVFRQFHUWLQJWKDWGHVSLWHWKHRYHUDOOVXFFHVVRI              SHUPLVVLRQWRILOHDQLPPHGLDWHDSSHDO2Q'HFHPEHU
    WKLV SURMHFW DV ZHOO DV P\ FRQVLVWHQW UHIHUUDOV RI              WKHGLVWULFWFRXUWHQWHUHGDQRUGHUJUDQWLQJ'RZQLHjV
    GRFXPHQWHG LQWHOOLJHQFH WR \RXU RIILFH IRU WKH ODVW VL[          5XOHEPRWLRQJDYHLWVUHDVRQVIRUILQGLQJWKDWWKHUHZDV
    \HDUVP\LGHQWLW\ZRXOGEHFRPSURPLVHGE\\RXLIQRW                   QRMXVWFDXVHIRUGHOD\EXWGLGQRWH[SUHVVO\GLUHFWHQWU\RI
    IRU WKH RQJRLQJ JXQ FDVH WR SURVHFXWH RQH PRUH                  MXGJPHQWs$DW'RZQLHILOHGKLVQRWLFHRIDSSHDORQ
    GHIHQGDQWIRURQHFRXQWRIWUDIILFNLQJFRXQWHUIHLW*XFFL                 sDQXDU\s$DW
    EDJV)RUWKLVUHDVRQ,DPJLYLQJVHULRXVFRQVLGHUDWLRQ
    WRUHIHUULQJWKHLQVWDQWFDVHWRWKH)%,WRLQYHVWLJDWHWKH                 :KHWKHU RU QRW WKH GLVWULFW FRXUW VDWLVILHG WKH WHFKQLFDO
    QH[XVDPRQJWKH2KLREDVHGYLRODWRUKLVEURWKHUZKRLV                  UHTXLUHPHQWVRI5XOHELQSDUWLFXODUWKHUHTXLUHPHQWRI
    DQDLGHWRD86&RQJUHVVPDQDQGWKLV&RQJUHVVPDQjV                     DQmH[SUHVVGLUHFWLRQIRUWKH HQWU\RIMXGJPHQWlDSSHOODWH
    SRVVLEOH FRQWDFWV ZLWK RQH RI WKH )ORULGD EDVHG                   MXULVGLFWLRQ SURSHUO\ UHVWV LQ WKLV FRXUW  &OHDUO\ WKH FDVH
    FRQVSLUDWRUV                                                            LQYROYHVPXOWLSOHSDUWLHVsXVWDVFOHDUO\WKHGLVWULFWFRXUW
                                                                             ZKROO\UHVROYHGWKHDFWLRQDVWRWZRRIWKRVHSDUWLHV6LHJHO
s$ DW  /HWWHU RI 5HVLJQDWLRQ ([ $ WR &RPSO                DQG 6FKQHLGHUZKHQ LW JUDQWHG WKHLU PRWLRQ WR GLVPLVV
)ROORZLQJKLVUHVLJQDWLRQ'RZQLHFODLPVWKDW6LHJHOmEHJDQ                  6XEVWDQWLYHO\WKHUHIRUHWKHGLVWULFWFRXUWKDGDSURSHUEDVLV
DFDPSDLJQWRGLVFUHGLW>KLP@ls$DW&RPSO                   IRU FHUWLI\LQJ DQ LPPHGLDWH DSSHDO  'RZQLH PRUHRYHU
                                                                             DVVXPHG WKDW WKH WLPH IRU DSSHDO EHJDQ WR UXQ ZKHQ WKH
  6LHJHOjVDOOHJHGFDPSDLJQWRGLVFUHGLW'RZQLHFRQVLVWHGRI                 GLVWULFWFRXUWJUDQWHGKLV5XOHEPRWLRQDQGKHILOHGD
WKUHH SDUWV  )LUVW 'RZQLH FODLPV WKDW 6LHJHO ZURWH D              WLPHO\ QRWLFH RI DSSHDO DFFRUGLQJO\  8QGHU WKHVH
mEODFNEDOOlPHPRUHJDUGLQJ'RZQLHZKLFK6LHJHOVHQWWRWKH                  FLUFXPVWDQFHVHYHQLIWKHGLVWULFWFRXUWIDLOHGWRFRPSO\ZLWK
GLUHFWRURIWKH2IILFHRI'RPHVWLF2SHUDWLRQVIRUWKH86                   WKHWHFKQLFDOUHTXLUHPHQWVRI5XOHEQRSXUSRVHZRXOG
&XVWRPV6HUYLFHDQGZKLFKVWDWHGLQLWVHQWLUHW\                            EHVHUYHGE\VHQGLQJWKHFDVHEDFNWRWKHGLVWULFWFRXUWIRUD
                                                                             mSURSHUlFHUWLILFDWLRQ
    ,Q DFFRUGDQFH ZLWK FKDSWHU  RI WKH 6SHFLDO $JHQW
    +DQGERRNWKLVRIILFHUHFRPPHQGVWKDW0LFNH\'RZQH\
       EH SURKLELWHG EODFNOLVWHG IURP DQ\ IXUWKHU
                                                                                 
    SDUWLFLSDWLRQDVDVRXUFHRILQIRUPDWLRQIRUWKH&XVWRPV                       /LNH 5XOH E 5XOH  DGGUHVVHV D FRQFHUQ IRU DQ H[SUHVV DQG
                                                                             XQPLVWDNDEOH GHWHUPLQDWLRQ RI ILQDOLW\ \HW WKH 8QLWHG 6WDWHV 6XSUHPH
                                                                             &RXUW KDV VDLG WKDW DQ DSSHOODWH FRXUW VKRXOG LQVLVW RQ WHFKQLFDO
                                                                             DSSOLFDWLRQ RI 5XOH  RQO\ ZKHQ WHFKQLFDO DSSOLFDWLRQ RI WKH UXOH ZRXOG
     
      :H QRWH WKDW DOO SDUWLHV WR WKLV DSSHDO DJUHH WKDW 'RZQLH ZDV QRW DQ   SUHYHQW WKH ORVV RI D OLWLJDQWjV ULJKW WR DSSHDO GXH WR FRQIXVLRQ %DQNHUV
HPSOR\HH RI WKH 86 &XVWRPV 6HUYLFH $SSHOODQWjV %U DW  $SSHOOHHVj      7UXVW &R Y 0DOOLV  86    6 &W   / (G G 
%U DW  VHH DOVR  86&  D GHILQLQJ mHPSOR\HHl IRU WKH           ,Q FRQWUDVW FRPSOLDQFH ZLWK WKH WHFKQLFDOLWLHV RI 5XOH  LV
SXUSRVHV RI WKH &LYLO 6HUYLFH 5HIRUP $FW m&65$l                          XQQHFHVVDU\ ZKHQ WKH SDUWLHV KDYH DVVXPHG WKDW WKH WLPH IRU DSSHDO KDV
       'RZQLHHWDOY&LW\RI                  1R       1R                       'RZQLHHWDOY&LW\RI         
         0LGGOHEXUJ+JWVHWDO                                                                       0LGGOHEXUJ+JWVHWDO

DWGHGLQWHUQDOTXRWDWLRQRPLWWHGVHH            6HUYLFH7KLVVRXUFHKDVSURYHQWREHERWKXQGHVLUDEOH
DOVR,QUH)UHGHULFN3HWUROHXP)GWK              DQGXQUHOLDEOH+HUHQHJHGRQDSURPLVHWRWHVWLI\DWWKH
&LU  VXJJHVWLQJ WKDW 5XOH E mHVWDEOLVKHV D            FRQFOXVLRQ RI DQ XQGHUFRYHU LQYHVWLJDWLRQ UHIXVHG WR
PXFKQHHGHG EULJKWOLQH WHVW IRU GHWHUPLQLQJ ILQDOLW\            WDNHGLUHFWLRQRIKLVFRQWURODJHQWDQGRWKHUVXSHUYLVRU\
SURYLGLQJFHUWDLQW\IRUOLWLJDQWVDVWRZKHWKHUWKHLUDSSHDOVDUH       DJHQWV UHJDUGLQJ KLV DFWLYLWLHV LQ DQ XQGHUFRYHU
ILQDOl:LWKRXWVWULFWFRPSOLDQFHZLWKWKHUXOHjVWHFKQLFDO           LQYHVWLJDWLRQ DQG UHYHDOHG SURSULHWDU\ &XVWRPV
UHTXLUHPHQWV OLWLJDQWV PD\ EH OHIW WR ZRQGHU ZKHWKHU DQG       LQIRUPDWLRQ UHJDUGLQJ D VHQVLWLYH XQGHUFRYHU
ZKHQ WKH FORFN VWDUWV WR UXQ IRU DQ DSSHDO RI D SDUWLDO      LQYHVWLJDWLRQ WR RWKHU ODZ HQIRUFHPHQW DJHQFLHV DQG
MXGJPHQW                                                              SDUWLHVXQNQRZQZLWKRXWWKHSHUPLVVLRQRIWKH&XVWRPV
                                                                        6HUYLFH  +LV DFWLRQV FRPSURPLVHG PRUH WKDQ RQH
   7KDW D GLVWULFW FRXUW FRPSOLHV ZLWK WKH WHFKQLFDO             LQYHVWLJDWLRQFDXVLQJSRVVLEOHGDQJHUWRDQXQGHUFRYHU
UHTXLUHPHQWVRI5XOHEGRHVQRWQHFHVVDULO\PHDQWKDWDQ            &XVWRPV 6SHFLDO $JHQW DQG WKH GLVPLVVDO RI FULPLQDO
DSSHDORIDFHUWLILHGSDUWLDOMXGJPHQWLVSURSHU%\LWVRZQ           FKDUJHVDJDLQVWDWOHDVWRQHGHIHQGDQW)RUWKHDERYH
WHUPV 5XOH E DSSOLHV RQO\ WR DFWLRQV LQYROYLQJ HLWKHU      UHDVRQV LW LV P\ EHOLHI WKDW WKH LQGLYLGXDO VKRXOG QR
PXOWLSOHSDUWLHVRUPXOWLSOHFODLPV$FFRUGLQJO\DQDSSHOODWH         ORQJHUEHXVHGDVDQLQIRUPDQWE\WKH&XVWRPV6HUYLFH
FRXUW PXVW H[DPLQH QRW RQO\ D GLVWULFW FRXUWjV FRPSOLDQFH
ZLWK WKH UXOHjV mH[SUHVV GHWHUPLQDWLRQl DQG mH[SUHVV            s$DW6LHJHO0HPR([%WR&RPSO6HFRQG'RZQLH
GLUHFWLRQlUHTXLUHPHQWVLWPXVWDOVRORRNEHKLQGWKHGLVWULFW        FODLPVWKDW6LHJHOmHQOLVWHGWKHDVVLVWDQFHlRI6FKQHLGHUDQG
FRXUWjVFHUWLILFDWLRQRUGHUWRGHWHUPLQHZKHWKHUVXEVWDQWLYHO\      WRJHWKHUWKH\FDXVHG'RZQLHjVIHGHUDOILUHDUPVOLFHQVHWREH
WKH TXHVWLRQ FHUWLILHG IRU DSSHDO VDWLVILHV WKH PXOWLSOH       UHYRNHGLOOHJDOO\VHL]HG'RZQLHjVILUHDUPDQGFDXVHGWKH
FODLPVPXOWLSOHSDUWLHVSUHUHTXLVLWH                                 HQWU\ RI IDOVH UHFRUGV LQWR WKH &LW\ RI 0LGGOHEXUJ +HLJKWV
                                                                      SROLFH ILOHV UHJDUGLQJ DQ DUUHVW RI 'RZQLH IRU FDUU\LQJ D
                                 %                                   FRQFHDOHGZHDSRQs$DW&RPSO7KLUG
                                                                      'RZQLHFODLPVWKDWmYDULRXVIHGHUDORIILFLDOVlFDXVHGKLPDQG
  ,Q WKLV FDVH RQ 6HSWHPEHU   WKH GLVWULFW FRXUW    KLV DVVLVWDQW :KHDW WR EH ILUHG IURP SRVLWLRQV ZLWK WKH
HQWHUHGDQRUGHUJUDQWLQJ6LHJHOjVDQG6FKQHLGHUjVPRWLRQWR          $VKWDEXOD &RXQW\ 1DUFRWLFV 7DVN )RUFH  s$ DW 
GLVPLVVs$DW7KDWVDPHGDWHWKHGLVWULFWFRXUWVLJQHG      &RPSO$FFRUGLQJWR'RZQLHKHZDVKLUHGWREH
ZKDWLVHQWLWOHGDmsXGJPHQW(QWU\lLQIDYRURI6LHJHODQG            mGLUHFWRUlRIWKH$VKWDEXOD&RXQW\1DUFRWLFV7DVN)RUFHE\
6FKQHLGHU  DQG WKDW msXGJPHQW (QWU\l ZDV HQWHUHG RQ WKH      GHIHQGDQW7KRPDV6DUWLQLWKH$VKWDEXOD&RXQW\3URVHFXWRU
GRFNHW%HFDXVHWKHFRXUWGLGQRWDWWKDWWLPHH[SUHVVO\          'RZQLHFRQWHQGVWKDWDIWHUKLULQJKLP6DUWLQLZDVFRQWDFWHG
GHWHUPLQHWKDWWKHUHZDVQRMXVWUHDVRQWRGHOD\DQDSSHDOWKH       E\YDULRXVIHGHUDORIILFLDOVDQGZDUQHGWKDWLIKHGLGQRWILUH
msXGJPHQW(QWU\lGLGQRWmWHUPLQDWHWKHDFWLRQDVWRDQ\RI           'RZQLH WKH IHGHUDO RIILFLDOV ZRXOG QR ORQJHU ZRUN ZLWK
WKHFODLPVRUSDUWLHVDQGWKHRUGHURURWKHUIRUPRIGHFLVLRQ        6DUWLQL  7KH IHGHUDO RIILFLDOV SXUSRUWHGO\ WROG 6DUWLQL WKDW
>ZD@V VXEMHFW WR UHYLVLRQ DW DQ\ WLPH EHIRUH WKH HQWU\ RI   'RZQLHZDVmXQGHVLUDEOHDQGXQUHOLDEOHlWKHH[DFWZRUGV
MXGJPHQW DGMXGLFDWLQJ DOO WKH FODLPV DQG WKH ULJKWV DQG       XVHGLQWKHmEODFNEDOOlPHPRs$DW&RPSO
                                                                        2QWKHEDVLVRIWKHDERYHIDFWV'RZQLHDQG:KHDWDOOHJHG
     
                                                                      LQWKHFRPSODLQWWKDWWKHGHIHQGDQWVUHWDOLDWHGDJDLQVW
     7KH GLVWULFW FRXUWjV msXGJPHQW (QWU\l ZDV QRW LQFOXGHG LQ WKH    WKHP LQ YLRODWLRQ RI WKHLU )LUVW $PHQGPHQW ULJKWV  WKH
DSSHQGL[ WR WKLV FDVH
       'RZQLHHWDOY&LW\RI                           1R         1R                            'RZQLHHWDOY&LW\RI           
        0LGGOHEXUJ+JWVHWDO                                                                                       0LGGOHEXUJ+JWVHWDO

GHIHQGDQWVYLRODWHGWKHLUULJKWVXQGHU2KLRODZDQGWKH                    UHTXLUHPHQWVLVDSSDUHQWQRWRQO\IURPWKHLUXVHRIGLIIHUHQW
GHIHQGDQWVFRQVSLUHGWRGHSULYHWKHPRIWKHLUFRQVWLWXWLRQDO                    WHUPLQRORJ\WKHZRUGVmGHWHUPLQDWLRQlDQGmGLUHFWLRQlWR
DQGVWDWHODZULJKWV$ORQJZLWKWKHFRPSODLQW'RZQLHDQG                     GHVFULEHWKHWZRUHTXLUHPHQWVEXWDOVRIURPWKHLUXVHRIWKH
:KHDWILOHGDPRWLRQIRUDWHPSRUDU\UHVWUDLQLQJRUGHUDQGD                    ZRUGmH[SUHVVlWRPRGLI\HDFKRIWKHWZRUHTXLUHPHQWV
SUHOLPLQDU\LQMXQFWLRQEXWDIWHUDKHDULQJRQsXO\WKH
GLVWULFWFRXUWGHQLHGWKHPRWLRQ2Q1RYHPEHUWKH                        7KHVHFRQGVHQWHQFHH[SODLQVWKHHIIHFWRIDGLVWULFWFRXUWjV
8QLWHG 6WDWHV VXEVWLWXWHG LWVHOI IRU GHIHQGDQWV 6LHJHO DQG               IDLOXUHWRFRPSO\ZLWKWKHmGHWHUPLQDWLRQlDQGmGLUHFWLRQl
6FKQHLGHU SXUVXDQW WR WKH )HGHUDO (PSOR\HHV /LDELOLW\                     UHTXLUHPHQWV  ,QGHHG LQ WKH VHFRQG VHQWHQFH WKH GUDIWHUV
5HIRUPDQG7RUW&RPSHQVDWLRQ$FWRIWKHm:HVWIDOO                         XQGHUVFRUHG WKH LPSRUWDQFH RI WKH mGHWHUPLQDWLRQl DQG
$FWl FRGLILHG DW  86&    7KH VXEVWLWXWLRQ                mGLUHFWLRQlUHTXLUHPHQWVE\SURYLGLQJWKDWDQ\FRXUWRUGHU
FRYHUHG DOO WKH FODLPV DOOHJHG LQ WKH SODLQWLIIVj FRPSODLQW            KRZHYHU GHVLJQDWHG WKDW GRHV QRW FRPSO\ ZLWK ERWK WKH
H[FHSW WKRVH DOOHJLQJ YLRODWLRQV RI WKH 8QLWHG 6WDWHV                    mGHWHUPLQDWLRQl DQG mGLUHFWLRQl UHTXLUHPHQWV mVKDOO QRW
&RQVWLWXWLRQ6HH86&E$7KH8QLWHG                       WHUPLQDWHWKHDFWLRQDVWRDQ\RIWKHFODLPVRUSDUWLHVlDQG
6WDWHVWKHQILOHGDPRWLRQWRGLVPLVVIRUODFNRIVXEMHFWPDWWHU                VKDOO EH VXEMHFW WR ODWHU UHYLVLRQ  )HG5&LY3 E
MXULVGLFWLRQ SXUVXDQW WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH                 0RUHRYHU LQFOXVLRQ RI WKH ZRUGV mKRZHYHU GHVLJQDWHGl
E$OVRRQ1RYHPEHU6LHJHODQG6FKQHLGHU                       VLJQDOV WKH GUDIWHUVj FRQFHUQ WKDW WKH UHTXLUHPHQWV QRW EH
ILOHG D PRWLRQ WR GLVPLVV IRU IDLOXUH WR VWDWH D FODLP XSRQ          FLUFXPYHQWHG
ZKLFK UHOLHI FRXOG EH JUDQWHG SXUVXDQW WR )HGHUDO 5XOH RI
&LYLO3URFHGXUHE                                                         %\ LQFOXGLQJ WKH mH[SUHVV GHWHUPLQDWLRQl DQG mH[SUHVV
                                                                                GLUHFWLRQlUHTXLUHPHQWVWKHGUDIWHUVRI5XOHEDGGUHVVHG
   2Q 6HSWHPEHU   WKH GLVWULFW LVVXHG DQ RUGHU                  mDQRYHUULGLQJFRQFHUQIRUFHUWDLQW\DQGIRUDQH[SUHVVDQG
JUDQWLQJWKHJRYHUQPHQWjVPRWLRQWRGLVPLVVDQGJUDQWLQJLQ                    XQPLVWDNDEOHGHWHUPLQDWLRQRIILQDOLW\LQDPELJXRXVPXOWL
SDUW6LHJHOjVDQG6FKQHLGHUjVPRWLRQWRGLVPLVV6HH'RZQLH                    SDUW\ DQG PXOWLFODLP VLWXDWLRQVl  )6/,& Y 7XOORV
Y&LW\RI0LGGOHEXUJ+HLJKWV)6XSSG1'2KLR                    3LHUUHPRQW  )G   WK &LU   $V
  ,Q UHJDUG WR WKH JRYHUQPHQWjV PRWLRQ WKH GLVWULFW             3URIHVVRU:ULJKWVWDWHVm>5XOHE@SURYLGHVPXFKQHHGHG
FRXUW H[SODLQHG WKDW WKH 8QLWHG 6WDWHV FDQ RQO\ EH VXHG                FHUWDLQW\ LQ GHWHUPLQLQJ ZKHQ D ILQDO DQG DSSHDODEOH
SXUVXDQWWRWKH)HGHUDO7RUW&ODLPV$FWm)7&$l%HFDXVH                      MXGJPHQWKDVEHHQHQWHUHG>,@I>WKHFRXUW@GRHVFKRRVHWR
'RZQLHDQG:KHDWGLGQRWDOOHJHLQWKHLUFRPSODLQWWKDWWKH\                    HQWHUVXFKDILQDORUGHU>WKHFRXUW@PXVWGRVRLQDGHILQLWH
KDGH[KDXVWHGWKHLUDGPLQLVWUDWLYHUHPHGLHVDVUHTXLUHGE\WKH                  XQPLVWDNDEOHPDQQHUl&KDUOHV$ODQ:ULJKW$UWKXU5
$FW86&DDQGEHFDXVHDOORIWKHLUVWDWHODZ                    0LOOHU	0DU\.D\.DQH)HGHUDO3UDFWLFHDQG3URFHGXUH
FODLPVIHOOXQGHUH[FHSWLRQVWRWKH8QLWHG6WDWHVjV JHQHUDO
ZDLYHU RI VRYHUHLJQ LPPXQLW\  86&  K WKH
                                                                                    
                                                                                      %ODFN
V /DZ 'LFWLRQDU\ GHILQHV H[SUHVV DV >F@OHDUO\ DQG
                                                                                XQPLVWDNDEO\ FRPPXQLFDWHGl %ODFN
V /DZ 'LFWLRQDU\  WK HG
                                                                               2WKHU GLFWLRQDULHV JLYH VXEVWDQWLDOO\ VLPLODU GHILQLWLRQV 6HH HJ
      7KH 8QLWHG 6WDWHV PD\ VXEVWLWXWH LWVHOI DV WKH SDUW\ GHIHQGDQW LQ FLYLO   :HEVWHUjV 7KLUG 1HZ ,QWHUQDWLRQDO 'LFWLRQDU\   GHILQLQJ

VXLWV DJDLQVW IHGHUDO HPSOR\HHV m>X@SRQ FHUWLILFDWLRQ E\ WKH $WWRUQH\           H[SUHVV DV GLUHFWO\ DQG GLVWLQFWO\ VWDWHG RU H[SUHVVHG UDWKHU WKDQ
*HQHUDO WKDW WKH GHIHQGDQW HPSOR\HH ZDV DFWLQJ ZLWKLQ WKH VFRSH RI KLV          LPSOLHG RU OHIW WR LQIHUHQFH  GHILQLWH FOHDU H[SOLFLW XQPLVWDNDEOH 7KH
RIILFH RU HPSOR\PHQW DW WKH WLPH RI WKH LQFLGHQW RXW RI ZKLFK WKH FODLP         0HUULDP :HEVWHU 'LFWLRQDU\   GHILQLQJ H[SUHVV DV mH[SOLFLW

DURVHl  86&  G                                                 H[DFW SUHFLVHVSHFLILFl
    'RZQLHHWDOY&LW\RI                     1R     1R                        'RZQLHHWDOY&LW\RI        
      0LGGOHEXUJ+JWVHWDO                                                                         0LGGOHEXUJ+JWVHWDO

                  BBBBBBBBBBBBBBBBBBBBB                             GLVWULFWFRXUWJUDQWHGWKHJRYHUQPHQWjVPRWLRQWRGLVPLVVIRU
                                                                    ODFNRIVXEMHFWPDWWHUMXULVGLFWLRQ
                     &21&855(1&(
                  BBBBBBBBBBBBBBBBBBBBB                                 ,QUHJDUGWR6LHJHOjVDQG6FKQHLGHUjVPRWLRQWRGLVPLVVWKH
                                                                    GLVWULFWFRXUWILUVWFRQFOXGHGWKDW:KHDWjVFRPSODLQWDJDLQVW
   :,//,$0 67$))25' 'LVWULFW sXGJH VSHFLDOO\                  6LHJHODQG6FKQHLGHUIDLOHGWRVWDWHDFODLPXSRQZKLFKUHOLHI
FRQFXUULQJ7KHPDMRULW\FRQFOXGHVLQ3DUW,,WKDWWKHGLVWULFW    FRXOGEHJUDQWHGEHFDXVHWKHFRPSODLQWGLGQRWDOOHJHWKDW
FRXUWjVFHUWLILFDWLRQVDWLVILHGWKHmH[SUHVVGHWHUPLQDWLRQlDQG     6LHJHODQG6FKQHLGHUYLRODWHG:KHDWjVFRQVWLWXWLRQDOULJKWV
mH[SUHVVGLUHFWLRQlUHTXLUHPHQWVRI5XOHE%HFDXVH,          7KHFRXUWQH[WFRQFOXGHGWKDW&RXQW,,,RIWKHFRPSODLQWLQ
ILQGVXFKFRQFOXVLRQERWKSUREOHPDWLFDQGXQQHFHVVDU\WRWKH        ZKLFK'RZQLHDOOHJHGWKDWKHKDGEHHQUHWDOLDWHGDJDLQVWIRU
GHFLVLRQ KHUH , ZULWH VHSDUDWHO\ WR H[SODLQ ZK\ , WKLQN   KLVmSULRUXVHRIWKHOHJDOV\VWHPlDOVRIDLOHGWRVWDWHDFODLP
DSSHOODWHMXULVGLFWLRQH[LVWVLQWKLVFDVH                        XSRQZKLFKUHOLHIFRXOGEHJUDQWHGEHFDXVHWKHFRPSODLQWGLG
                                                                    QRWDOOHJHWKDW6LHJHODQG6FKQHLGHUEORFNHG'RZQLHjVDFFHVV
                               $                                   WRWKHFRXUWV)LQDOO\WKHGLVWULFWFRXUWFRQFOXGHGWKDW&RXQWV
                                                                    , ,, DQG ;, RI 'RZQLHjV FRPSODLQW IDLOHG WR VWDWH D FODLP
  5XOHEVWDWHVLQUHOHYDQWSDUW                             XSRQZKLFKUHOLHIFRXOGEHJUDQWHGLQVRIDUDVWKH\UHOLHGRQ
                                                                    WKH86&XVWRPV6HUYLFHjVUHWHQWLRQRUGLVVHPLQDWLRQRIWKH
  :KHQPRUHWKDQRQHFODLPIRUUHOLHILVSUHVHQWHGLQDQ            mEODFNEDOOlPHPR7KHGLVWULFWFRXUWDJUHHGZLWK6LHJHODQG
  DFWLRQRUZKHQPXOWLSOHSDUWLHVDUHLQYROYHGWKHFRXUW       6FKQHLGHU WKDW 'RZQLH FRXOG QRW VHHN D %LYHQV UHPHG\
  PD\GLUHFWWKHHQWU\RIDILQDOMXGJPHQWDVWRRQHRUPRUH        DJDLQVWWKHPIRUWKHUHWHQWLRQRUGLVVHPLQDWLRQRIWKHPHPR
  EXWIHZHUWKDQDOORIWKHFODLPVRUSDUWLHVRQO\XSRQDQ          EHFDXVHWKH3ULYDF\$FWRIH[LVWHGDVDFRPSUHKHQVLYH
  H[SUHVV GHWHUPLQDWLRQ WKDW WKHUH LV QR MXVW UHDVRQ IRU    OHJLVODWLYHVFKHPHSURYLGLQJDPHDQLQJIXOUHPHG\DJDLQVWWKH
  GHOD\ DQG XSRQ DQ H[SUHVV GLUHFWLRQ IRU WKH HQWU\ RI     8QLWHG6WDWHVIRUVXFKUHWHQWLRQDQGGLVVHPLQDWLRQ7RWKH
  MXGJPHQW  ,Q WKH DEVHQFH RI VXFK GHWHUPLQDWLRQ DQG       H[WHQWWKDW&RXQWV,,,DQG;,RI'RZQLHjVFRPSODLQWGLGQRW
  GLUHFWLRQDQ\RUGHURURWKHUIRUPRIGHFLVLRQKRZHYHU           UHO\ RQ WKH UHWHQWLRQ RU GLVVHPLQDWLRQ RI WKH PHPR WKH
  GHVLJQDWHGZKLFKDGMXGLFDWHVIHZHUWKDQDOOWKHFODLPV           GLVWULFW FRXUW GHQLHG 6LHJHOjV DQG 6FKQHLGHUjV PRWLRQ WR
  RUWKHULJKWVDQGOLDELOLWLHVRIIHZHUWKDQDOOWKHSDUWLHV       GLVPLVVILQGLQJDOVRWKDWWKH\ZHUHQRWHQWLWOHGWRTXDOLILHG
  VKDOOQRWWHUPLQDWHWKHDFWLRQDVWRDQ\RIWKHFODLPVRU         LPPXQLW\
  SDUWLHVDQGWKHRUGHURURWKHUIRUPRIGHFLVLRQLVVXEMHFW
  WR UHYLVLRQ DW DQ\ WLPH EHIRUH WKH HQWU\ RI MXGJPHQW       2Q 2FWREHU   6LHJHO DQG 6FKQHLGHU PRYHG IRU
  DGMXGLFDWLQJDOOWKHFODLPVDQGWKHULJKWVDQGOLDELOLWLHVRI     UHFRQVLGHUDWLRQRIWKHGLVWULFWFRXUWjVSDUWLDOGHQLDORIWKHLU
  DOOWKHSDUWLHV                                                  PRWLRQ WR GLVPLVV  6LHJHO DQG 6FKQHLGHU DUJXHG WKDW WKH
                                                                    3ULYDF\$FWHQWLUHO\SUHFOXGHG'RZQLHjV)LUVW$PHQGPHQW
)HG5&LY3E7KHILUVWVHQWHQFHRIWKHUXOH       UHWDOLDWLRQFODLPVDJDLQVWWKHP2Q6HSWHPEHUWKH
H[SODLQVZKDWDGLVWULFWFRXUWPXVWGRWRHQWHUDSDUWLDOILQDO     GLVWULFW FRXUW LVVXHG DQ RUGHU JUDQWLQJ WKH PRWLRQ IRU
MXGJPHQW6SHFLILFDOO\WKHFRXUWPXVWPDNHERWKDQH[SUHVV       UHFRQVLGHUDWLRQDQGDPHQGLQJLWVRUGHURI6HSWHPEHU
GHWHUPLQDWLRQWKDWWKHUHLVQRMXVWUHDVRQIRUGHOD\DQGDQ        WR GLVPLVV DOO RI 'RZQLHjV FODLPV DJDLQVW 6LHJHO DQG
H[SUHVVGLUHFWLRQIRUWKHHQWU\RIMXGJPHQW)HG5&LY3        6FKQHLGHUSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUHH
E7KDWWKHGUDIWHUVLQWHQGHGWZRVHSDUDWHDQGGLVWLQFW        RQWKHVDPHGD\WKHFRXUWHQWHUHGMXGJPHQWIRU6LHJHODQG
       'RZQLHHWDOY&LW\RI                           1R        1R                   'RZQLHHWDOY&LW\RI   
        0LGGOHEXUJ+JWVHWDO                                                                             0LGGOHEXUJ+JWVHWDO

6FKQHLGHU7KHFRXUWFRQFOXGHGWKDWWKH3ULYDF\$FWRI                   FRPSUHKHQVLYHOHJLVODWLYHVFKHPHWKDWSURYLGHVDPHDQLQJIXO
DOVRH[LVWHGDVDFRPSUHKHQVLYHOHJLVODWLYHVFKHPHSURYLGLQJ                   UHPHG\SUHFOXGHV'RZQLHjV%LYHQVDFWLRQDJDLQVW6LHJHODQG
DPHDQLQJIXOUHPHG\DJDLQVWWKH8QLWHG6WDWHVIRUWKHFUHDWLRQ                 6FKQHLGHURQ&RXQW,,,RIKLVFRPSODLQW
RIWKHmEODFNEDOOlPHPRDQGWKHFRXUWWKHQIXUWKHUKHOGWKDW
WKHHIIHFWRILWVFRQFOXVLRQUHJDUGLQJWKHFUHDWLRQRIWKHPHPR                                   ,9&21&/86,21
ZDVmGLVSRVLWLYHRIWKHUHVWRIWKHFODLPVDJDLQVW6LHJHODQG
6FKQHLGHUls$DW6HSW2UGHU*UDQWLQJ'HIVj                    )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHRUGHUVRIWKH
0RWIRU5HFRQV)ROORZLQJWKHGLVWULFWFRXUWjVFHUWLILFDWLRQ               GLVWULFW FRXUW GLVPLVVLQJ 'RZQLHjV FRQVWLWXWLRQDO FODLPV
XQGHU )HGHUDO 5XOH RI &LYLO 3URFHGXUH E 'RZQLH DQG                DJDLQVW6LHJHODQG6FKQHLGHU
:KHDWILOHGDQRWLFHRIDSSHDOUHJDUGLQJWKHGLVWULFWFRXUWjV
GLVPLVVDORIWKHLUFODLPVDJDLQVW6LHJHODQG6FKQHLGHU
                        ,,s85,6',&7,21
   6LHJHO DQG 6FKQHLGHU FRQWHQG WKDW WKLV FRXUW ODFNV
MXULVGLFWLRQWRKHDU'RZQLHjVDSSHDOEHFDXVHWKHGLVWULFWFRXUW
GLGQRWSURSHUO\FHUWLI\IRUDSSHDOLWVGLVPLVVDORI'RZQLHjV
FRQVWLWXWLRQDOFODLPVDJDLQVWWKHP:HGLVDJUHH)ROORZLQJ
LWVGLVPLVVDORI'RZQLHjVFRQVWLWXWLRQDOFODLPVDJDLQVW6LHJHO
DQG 6FKQHLGHU LQ WZR RUGHUV WKH GLVWULFW FRXUW JUDQWHG
'RZQLHjVPRWLRQWRDSSHDOWKRVHRUGHUVSXUVXDQWWR)HGHUDO
5XOHRI&LYLO3URFHGXUHE8QGHU5XOHEDSDUW\PD\
DSSHDODGLVWULFWFRXUWRUGHUSULRUWRWKHXOWLPDWHGLVSRVLWLRQ
RIDFDVHEXWWKHGLVWULFWFRXUWLVILUVWUHTXLUHGWRFHUWLI\WKDW
WKH RUGHU LV DSSHDODEOH  6HH ((2& Y 1RUWKZHVW $LUOLQHV
,QF)GWK&LU7RFHUWLI\DQRUGHU
IRULPPHGLDWHDSSHDODGLVWULFWFRXUWPXVWmH[SUHVVO\

    
      $OWKRXJK WKH QRWLFH RI DSSHDO VWDWHV WKDW 'RZQLH DQG :KHDW DSSHDO
WKH GLVWULFW FRXUWjV GHFLVLRQ 'RZQLH VWDWHV LQ KLV EULHI RQ DSSHDO WKDW WKH
DSSHDO mLV RQ EHKDOI RI SODLQWLII 'RZQLH RQO\l $SSHOODQWjV %U DW 

    
     )HGHUDO 5XOH RI &LYLO 3URFHGXUH E SURYLGHV LQ SHUWLQHQW SDUW
    :KHQ PRUH WKDQ RQH FODLP IRU UHOLHI LV SUHVHQWHG LQ DQ DFWLRQ
    ZKHWKHU DV D FODLP FRXQWHUFODLP FURVVFODLP RU WKLUGSDUW\
    FODLP RU ZKHQ PXOWLSOH SDUWLHV DUH LQYROYHG WKH FRXUW PD\ GLUHFW
    WKH HQWU\ RI D ILQDO MXGJPHQW DV WR RQH RU PRUH EXW IHZHU WKDQ DOO
    RI WKH FODLPV RU SDUWLHV RQO\ XSRQ DQ H[SUHVV GHWHUPLQDWLRQ WKDW
    WKHUH LV QR MXVW UHDVRQ IRU GHOD\ DQG XSRQ DQ H[SUHVV GLUHFWLRQ
    IRU WKH HQWU\ RI MXGJPHQW
     'RZQLHHWDOY&LW\RI                            1R        1R                       'RZQLHHWDOY&LW\RI       
       0LGGOHEXUJ+JWVHWDO                                                                                  0LGGOHEXUJ+JWVHWDO

&&RXQW,,,                                                                  GLUHFWWKHHQWU\RIILQDOMXGJPHQWDVWRRQHRUPRUHEXWIHZHU
                                                                               WKDQDOOWKHFODLPVRUSDUWLHVLQDFDVHlDQGmH[SUHVV>O\@
  7KH GLVWULFW FRXUW GLVPLVVHG &RXQW ,,, RI 'RZQLHjV                    GHWHUPLQ>H@ WKDW WKHUH LV QR MXVW UHDVRQ WR GHOD\ DSSHOODWH
FRPSODLQWRQWKHJURXQGWKDWm>W@KH&RXQWUDLVHVDUHWDOLDWLRQ                 UHYLHZl*HQ$FTXLVLWLRQ,QFY*HQ&RUS,QF)G
FODLP    EXW WKDW FODLP UHVWV RQ WKH SUHPLVH WKDW WKH           WK&LUTXRWDWLRQVRPLWWHG6LHJHODQG
GHIHQGDQWVj UHWDOLDWRU\ DFWLRQV YLRODWHG 'RZQLHjV ULJKW RI               6FKQHLGHU DUJXH WKDW LQ LWV RUGHU FHUWLI\LQJ 'RZQLHjV
DFFHVV WR WKH FRXUWV  1RZKHUH LQ WKH FRPSODLQW KRZHYHU             LPPHGLDWHDSSHDORQ'HFHPEHUWKHGLVWULFWFRXUW
GRHV'RZQLHVXJJHVWKRZWKHGHIHQGDQWVPLJKWKDYHEORFNHG                      GLG QRW mH[SUHVVO\ GLUHFW HQWU\ RI ILQDO MXGJPHQW IRU WKH
KLVDFFHVVWRWKHFRXUWVl'RZQLH)6XSSGDW              IHGHUDOGHIHQGDQWVl$SSHOOHHVj%UDWm,QVWHDGWKHFRXUW
&RXQW,,,RI'RZQLHjVFRPSODLQWDOOHJHG                                       VLPSO\ UHIHUUHG WR LWV HQWU\ RI MXGJPHQW RI 6HSWHPEHU 
                                                                               l  $SSHOOHHVj %U DW   $FFRUGLQJ WR 6LHJHO DQG
  7KH DFWLRQV RI WKH GHIHQGDQWV LQ SXEOLVKLQJ IDOVH DQG               6FKQHLGHUWKLVmSURFHGXUDODQRPDO\lFUHDWHVDVLWXDWLRQLQ
  GHIDPDWRU\LQIRUPDWLRQDERXWSODLQWLIIVFRQVWLWXWHV>VLF@                   ZKLFK WKH SODLQWLIIjV FHUWLILHG QRWLFH RI DSSHDO LV XQWLPHO\
  DYLRODWLRQRISODLQWLIIVj)LUVW$PHQGPHQWULJKWRIDFFHVV                   EHFDXVHLWZDVILOHGPRUHWKDQVL[W\GD\VDIWHUWKHHQWU\RIWKH
  WRWKHFRXUWVLQWKDWWKHDFWLRQVRIWKHGHIHQGDQWVLV>VLF@                GLVWULFWFRXUWjV6HSWHPEHURUGHU6HH)HG5$SS
  LQUHWDOLDWLRQIRUSODLQWLII'RZQLHjVSULRUXVHRIWKHOHJDO                 3D%
  V\VWHPWRYLQGLFDWHKLVULJKWV
                                                                                  :H KDYH KHOG KRZHYHU WKDW m>W@KH ILUVW VWHS LQ
s$DW&RPSO 'RZQLHQRZDUJXHVWKDWLQWKLV                     FHUWLILFDWLRQHQWU\RISDUWLDOILQDOMXGJPHQWLVVDWLVILHGZKHUH
FRXQWKHZDVDOOHJLQJQRWWKDWWKHGHIHQGDQWVSUHYHQWHGKLP                    VRPHGHFLVLRQPDGHE\WKHGLVWULFWFRXUWXOWLPDWHO\GLVSRVHV
IURP DFFHVVLQJ WKH FRXUWV EXW mWKDW VRPH RI WKH DGYHUVH              RIRQHRUPRUHEXWIHZHUWKDQDOORIWKHFODLPVRUSDUWLHVLQD
DFWLRQVWDNHQDJDLQVWKLPZHUHLQUHWDOLDWLRQIRUKLPKDYLQJ                   PXOWLFODLPPXOWLSDUW\DFWLRQl*HQ$FTXLVLWLRQ)GDW
DVVHUWHGKLVOHJDOULJKWVWKURXJKWKHFRXUWVl$SSHOODQWjV%U                 HPSKDVLV DGGHG  7KH GLVWULFW FRXUW QHHG QRW
DW                                                                         HQWHU WKH SDUWLDO ILQDO MXGJPHQW LQ LWV FHUWLILFDWLRQ RI DQ
                                                                               LPPHGLDWH DSSHDO SXUVXDQW WR 5XOH E LW VLPSO\ PXVW
  'RZQLHjVLQWHUSUHWDWLRQRI&RXQW,,,LVSODXVLEOH+RZHYHU                 UHFRJQL]HWKDWVXFKDSDUWLDOILQDOMXGJPHQWKDVEHHQHQWHUHG
ZH QRQHWKHOHVV FRQFOXGH WKDW WKH GLVWULFW FRXUW SURSHUO\                ,QLWVFHUWLILFDWLRQRI'RZQLHjVDSSHDOUHJDUGLQJWKHGLVPLVVDO
GLVPLVVHG&RXQW,,,$VZHH[SODLQHGDERYHWKHRQO\mIDOVH                   RIKLVFODLPVDJDLQVW6LHJHODQG6FKQHLGHUWKHGLVWULFWFRXUW
DQGGHIDPDWRU\lLQIRUPDWLRQDWLVVXHLQWKLVFDVHDUHWKHIDOVH                UHFRJQL]HGWKDWLWVH[SUHVVHQWU\RIMXGJPHQWIRU6LHJHODQG
UHFRUGV WKDW 6LHJHO DQG 6FKQHLGHU        DOOHJHGO\ FUHDWHG              6FKQHLGHU RQ 6HSWHPEHU   ILQDOO\ GLVSRVHG RI DOO
PDLQWDLQHGDQGGLVVHPLQDWHG7KHUHIRUHWKHVDPHDQDO\VLV                  'RZQLHjV FODLPV DJDLQVW 6LHJHO DQG 6FKQHLGHU  7KLV LV
WKDWDSSOLHGWR&RXQWV,,,DQG;,RI'RZQLHjVFRPSODLQW                     VXIILFLHQWIRUFHUWLILFDWLRQSXUSRVHVDQGWKHUHIRUH'RZQLH
DSSOLHV WR &RXQW ,,, ZH KROG WKDW WKH 3ULYDF\ $FW DV D            SURSHUO\DQGWLPHO\ILOHGKLVQRWLFHRIDSSHDOIURPWKHGLVWULFW
                                                                               FRXUWjVRUGHUJUDQWLQJ5XOHEFHUWLILFDWLRQ
     
       $V 6LHJHO DQG 6FKQHLGHU QRWH 'RZQLH FDQQRW LQWHQG &RXQW ,,, WR
DSSO\ WR WKH ILUVW WZR SDUWV RI 6LHJHOjV DOOHJHG mFDPSDLJQ WR GLVFUHGLWl KLP
o WKH FUHDWLRQ DQG PDLQWHQDQFH RI IDOVH UHFRUGV 7KH mEODFNEDOO PHPRl
ZDV ZULWWHQ LQ  DQG WKH ILUHDUPV UHYRFDWLRQ RFFXUUHG LQ  EXW
'RZQLH GLG QRW ILOH DQ\ DFWLRQ LQ WKH FRXUWV XQWLO 
       'RZQLHHWDOY&LW\RI                          1R         1R                           'RZQLHHWDOY&LW\RI         
         0LGGOHEXUJ+JWVHWDO                                                                                     0LGGOHEXUJ+JWVHWDO

                           ,,,$1$/<6,6                                       )6XSS   (' 9D  0LWWOHPDQ Y 86
                                                                                7UHDVXU\)6XSS''&3DWWHUVRQY
$6WDQGDUGRI5HYLHZ                                                          )%,)6XSSQ'1sDIIjG
                                                                                )GG&LUDQGFHUWGHQLHG86VHH
   7KLV FRXUW UHYLHZV GH QRYR D GLVWULFW FRXUWjV JUDQW RI D           DOVR.KDOIDQLY6HFj\'HSjWRI9HWHUDQV$IIDLUV:/
PRWLRQWRGLVPLVVSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUH                   DW('1<0DUFKFI$OH[DQGHUY
E6HH3IHQQLJY+RXVHKROG&UHGLW6HUYV,QF                    )%,)6XSS''&3ULYDF\$FWGLG
)GWK&LU,QUHYLHZLQJD5XOHE                    QRW SUHFOXGH %LYHQV DFWLRQ DJDLQVW IHGHUDO RIILFLDOV DFWLQJ
PRWLRQ WR GLVPLVV WKLV FRXUW WUHDWV DOO ZHOOSOHDGHG                    RXWVLGH WKH VFRSH RI WKHLU HPSOR\PHQW  ,Q SDUWLFXODU LQ
DOOHJDWLRQV LQ WKH FRPSODLQW DV WUXH DQG WKH FRXUW ILQGV              0LWWOHPDQDIRUPHUHPSOR\HHRIWKH867UHDVXU\DOOHJHG
GLVPLVVDO SURSHU RQO\ mLI LW DSSHDUV EH\RQG GRXEW WKDW WKH             WKDWVKHKDGEHHQILUHGLQUHWDOLDWLRQIRUmZKLVWOHEORZLQJl
SODLQWLIIFDQSURYHQRVHWRIIDFWVLQVXSSRUWRIWKHFODLPVWKDW               DQGWKDWIDOVHLQIRUPDWLRQFRQWDLQHGLQWKHGHSDUWPHQWjVILOHV
ZRXOGHQWLWOHKLPRUKHUWRUHOLHIl,GTXRWDWLRQRPLWWHG                  LQYROYLQJWKHLQFLGHQWSUHYHQWHGKHUIURPREWDLQLQJ        IXWXUH
                                                                                HPSOR\PHQW0LWWOHPDQ)6XSSDW
%%LYHQV$FWLRQn3ULYDF\$FW
                                                                                   ,QVXPDOWKRXJKIHZRWKHUIHGHUDOFRXUWVKDYHUXOHGRQWKLV
  7KHGLVWULFWFRXUWFRQFOXGHGWKDWWKH3ULYDF\$FWRI                     LVVXH ZH FRQFOXGH WKDW WKH 3ULYDF\ $FW RI  LV D
SUHFOXGHGDOORI'RZQLHjV%LYHQVFODLPVDJDLQVW6LHJHODQG                      FRPSUHKHQVLYHOHJLVODWLYHVFKHPHWKDWSURYLGHVDPHDQLQJIXO
6FKQHLGHU'RZQLHFRQWHQGVRQDSSHDOWKDWWKHGLVWULFWFRXUW                   UHPHG\IRUWKHZURQJ'RZQLHDOOHJHVDQGZHWKHUHIRUHZLOO
HUUHG LQ VR FRQFOXGLQJ  ,Q %LYHQV WKH 6XSUHPH &RXUW                 QRW LPSO\ D %LYHQV GDPDJHV UHPHG\ IRU 'RZQLH DJDLQVW
UHFRJQL]HGLQWKH8QLWHG6WDWHV&RQVWLWXWLRQLWVHOIDQLPSOLFLW                 6LHJHODQG6FKQHLGHURQ&RXQWV,,,DQG;,RIKLVFRPSODLQW
GDPDJHVFDXVHRIDFWLRQDJDLQVWLQGLYLGXDOIHGHUDORIILFLDOV
IRU YLRODWLRQV RI FRQVWLWXWLRQDO ULJKWV  6HH %LYHQV Y 6L[
8QNQRZQ1DPHG$JHQWVRI)HGHUDO%XUHDXRI1DUFRWLFV
86VHHDOVRsRQHVY79$)G
WK&LU+RZHYHUWKH6XSUHPH&RXUWKDVDOVRKHOG                          
                                                                                        'RZQLH DOVR DUJXHV WKDW LQ DW OHDVW RQH FDVH D IHGHUDO FRXUW KDV
WKDWD%LYHQVUHPHG\ZLOOQRWEHLPSOLHGZKHUHWKHUHDUH                  SHUPLWWHG D SODLQWLII WR VHHN %LYHQV UHOLHI LQ FLUFXPVWDQFHV VLPLODU WR KLV
mµVSHFLDO IDFWRUV FRXQVHOOLQJ KHVLWDWLRQ LQ WKH DEVHQFH RI               ,Q .DUWVHYD Y 'HSjW RI 6WDWH  )G  '& &LU  WKH SODLQWLII
DIILUPDWLYH DFWLRQ E\ &RQJUHVVjl RU  m&RQJUHVV KDV                   EURXJKW D %LYHQV DFWLRQ DJDLQVW IHGHUDO RIILFLDOV DOOHJLQJ WKDW VKH KDG
SURYLGHGDQDOWHUQDWLYHUHPHG\ZKLFKLWH[SOLFLWO\GHFODUHGWR                  EHHQ ILUHG IURP KHU MRE ZLWK DQ LQGHSHQGHQW FRQWUDFWRU ZRUNLQJ IRU WKH
EHDVXEVWLWXWHIRUUHFRYHU\GLUHFWO\XQGHUWKHFRQVWLWXWLRQDQG                6WDWH 'HSDUWPHQW RQ WKH EDVLV RI WKH 'HSDUWPHQWjV VHFXULW\ FRQFHUQV LQ
                                                                                YLRODWLRQ RI KHU )LIWK $PHQGPHQW GXH SURFHVV ULJKWV ,G DW  $V
                                                                                HYLGHQFH RI WKH FDXVDO OLQN EHWZHHQ WKH ILULQJ DQG WKH 'HSDUWPHQW WKH
                                                                                SODLQWLII SUHVHQWHG 'HSDUWPHQW PHPRV GLVFXVVLQJ KHU DV D VHFXULW\
                                                                                FRQFHUQ ,G $OWKRXJK .DUWVHYD VHHPV VLPLODU LQ VRPH UHVSHFWV WR WKH
     
      :H QRWH WKDW 'RZQLH DOVR DOOHJHV RQ DSSHDO WKDW KLV     %LYHQV DFWLRQ     LQVWDQW FDVH ZH ILQG LW GLVWLQJXLVKDEOH IRU WZR UHDVRQV )LUVW WKH IDFW
VKRXOG EH DVVHVVHG GLIIHUHQWO\ DV LW UHODWHV WR 6LHJHO DQG 6FKQHLGHU DQG        SDWWHUQ LV GLIIHUHQW IURP WKH LQVWDQW FDVH LQ WKDW .DUWVHYD GLG QRW DSSHDU
WKDW KLV FODLPV DJDLQVW ERWK 6LHJHO DQG 6FKQHLGHU VKRXOG EH DGGUHVVHG           VSHFLILFDOO\ WR DOOHJH WKDW WKH 'HSDUWPHQWjV PHPRV ZHUH IDOVH EXW VLPSO\
XQGHU  86&   $V 6LHJHO DQG 6FKQHLGHU SRLQW RXW 'RZQLH GLG           WKDW WKH\ IXQFWLRQDOO\ GLVTXDOLILHG KHU IURP IXWXUH HPSOR\PHQW ZLWKRXW
QRW UDLVH WKHVH FODLPV LQ WKH GLVWULFW FRXUW DQG KH KDV WKHUHIRUH ZDLYHG RXU   GXH SURFHVV ,G DW  6HFRQG WKH '& &LUFXLW LQ .DUWVHYD GLG QRW
FRQVLGHUDWLRQ RI WKHP   6HH %ODNHO\ Y 8QLWHG 6WDWHV  )G          DGGUHVV ZKHWKHU WKH 3ULYDF\ $FW ZRXOG SUHFOXGH WKH SODLQWLIIjV %LYHQV
Q WK &LU                                                             DFWLRQ
     'RZQLHHWDOY&LW\RI                             1R        1R                       'RZQLHHWDOY&LW\RI       
       0LGGOHEXUJ+JWVHWDO                                                                                   0LGGOHEXUJ+JWVHWDO

GHWHUPLQDWLRQj XQGHU WKH 3ULYDF\ $FWl  ,G DW               YLHZHGDVHTXDOO\HIIHFWLYHlsRQHV)GDWTXRWLQJ
$OWKRXJKZHQHHGQRWH[SOLFLWO\DGRSWWKHUHDVRQLQJRIWKH                      %LYHQV86DW
'&&LUFXLWLQ7RRODVSUDVKDGDWWKLVWLPHZHQRWHWKDWZH
ILQG WKDW FRXUWjV UHDVRQLQJ SHUVXDVLYH UHJDUGLQJ WKH                          ,Q WZR FDVHV LQ WKH V WKH 6XSUHPH &RXUW IXUWKHU
LQWHUSUHWDWLRQ RI mLQWHQWLRQDO RU ZLOOIXOl LQ WKH GDPDJHV                GHOLQHDWHGWKHWZRH[FHSWLRQVWRWKH%LYHQVGRFWULQH,Q%XVK
SURYLVLRQ RI WKH 3ULYDF\ $FW WR LQFOXGH )LUVW $PHQGPHQW                 Y /XFDV WKH 6XSUHPH &RXUW KHOG WKDW D 1$6$ DHURVSDFH
UHWDOLDWLRQ                                                                  HQJLQHHUFRXOGQRWEULQJD%LYHQVDFWLRQDJDLQVWKLVHPSOR\HU
                                                                                IRUUHWDOLDWRU\GHPRWLRQLQYLRODWLRQRIWKH)LUVW$PHQGPHQW
  )LQDOO\ 'RZQLH SRLQWV RXW WKDW RQO\ D KDQGIXO RI FRXUWV             m%HFDXVHVXFKFODLPVDULVHRXWRIDQHPSOR\PHQWUHODWLRQVKLS
KDYH KHOG WKDW WKH 3ULYDF\ $FW H[LVWV DV D FRPSUHKHQVLYH               WKDWLVJRYHUQHGE\FRPSUHKHQVLYHSURFHGXUDODQGVXEVWDQWLYH
OHJLVODWLYHVFKHPHSURYLGLQJDPHDQLQJIXOUHPHG\WRSUHYHQW                     SURYLVLRQV JLYLQJ PHDQLQJIXO UHPHGLHV DJDLQVW WKH 8QLWHG
SHUVRQVVXFKDVKLPVHOIIURPEULQJLQJ%LYHQVDFWLRQVDJDLQVW                    6WDWHVZHFRQFOXGHWKDWLWZRXOGEHLQDSSURSULDWHIRUXVWR
LQGLYLGXDOIHGHUDORIILFLDOVZKRIDOVLI\UHFRUGVLQUHWDOLDWLRQ                 VXSSOHPHQW WKDW UHJXODWRU\ VFKHPH ZLWK D QHZ MXGLFLDO
IRUWKHH[HUFLVHRI)LUVW$PHQGPHQWULJKWV,WGRHVDSSHDU                     UHPHG\l  %XVK Y /XFDV  86     7KH
WKDWQRFLUFXLWFRXUWKDVDGGUHVVHGWKLVTXHVWLRQEXWDV6LHJHO               %XVK &RXUW H[SODLQHG WKDW m>Z@KHQ &RQJUHVV SURYLGHV DQ
DQG 6FKQHLGHU QRWH D QXPEHU RI GLVWULFW FRXUWV KDYH                    DOWHUQDWLYHUHPHG\LWPD\RIFRXUVHLQGLFDWHLWVLQWHQWE\
DGGUHVVHGWKHTXHVWLRQDQGWKH\KDYHDOOKHOGWKDWWKH3ULYDF\                 VWDWXWRU\ ODQJXDJH E\ FOHDU OHJLVODWLYH KLVWRU\ RU SHUKDSV
$FW GRHV SUHYHQW SHUVRQV VXFK DV 'RZQLH IURP EULQJLQJ                   HYHQE\WKHVWDWXWRU\UHPHG\LWVHOIWKDWWKH&RXUWjVSRZHU
%LYHQV DFWLRQV DJDLQVW LQGLYLGXDO IHGHUDO RIILFLDOV  6HH                VKRXOG QRW EH H[HUFLVHGl  ,G DW   +RZHYHU m>L@Q WKH
6XOOLYDQ Y 86 3RVWDO 6HUY  ) 6XSS                     DEVHQFHRIVXFKDFRQJUHVVLRQDOGLUHFWLYHWKHIHGHUDOFRXUWV
:'1<:LOOLDPVY'HSjWRI9HWHUDQ$IIDLUV                      PXVW PDNH WKH NLQG RI UHPHGLDO GHWHUPLQDWLRQ WKDW LV
                                                                                DSSURSULDWHIRUDFRPPRQODZWULEXQDOSD\LQJSDUWLFXODUKHHG
                                                                                   WR DQ\ VSHFLDO IDFWRUV FRXQVHOOLQJ KHVLWDWLRQ EHIRUH
                                                                                DXWKRUL]LQJDQHZNLQGRIIHGHUDOOLWLJDWLRQl,G7KHIDFW
     
       ,Q LWV WHVW IRU DQ DGYHUVH GHWHUPLQDWLRQ WKH '& &LUFXLW DSSOLHG WKH   WKDW&RQJUHVVFRQVWUXFWHGDQmHODERUDWHUHPHGLDOV\VWHPlIRU
VWDQGDUG WKDW ZH XVH LQ )LUVW $PHQGPHQW UHWDOLDWLRQ FDVHV 6HH 7KDGGHXV        DGGUHVVLQJ YLRODWLRQV RI IHGHUDO HPSOR\HHVj ULJKWV n
; Y %ODWWHU  )G   WK &LU  HQ EDQF                      LQFOXGLQJ YLRODWLRQV RI WKHLU )LUVW $PHQGPHQW ULJKWV n
                                                                              FRQVWLWXWHGDVSHFLDOIDFWRUVXIILFLHQWIRUWKH&RXUWWRUHIXVH
        ,Q KLV EULHI RQ DSSHDO 'RZQLH DUJXHV WKDW KLV )LIWK $PHQGPHQW          WRLPSO\D%LYHQVUHPHG\,GDW
GXH SURFHVV ULJKWV ZHUH DOVR YLRODWHG E\ WKH GHIHQGDQWVj DFWLRQ
mDSSHOODQW KDV VXIILFLHQWO\ SOHDG D GHQLDO RI KLV ULJKW WR VHHN HPSOR\PHQW
LQ KLV FKRVHQ SURIHVVLRQ DQG WKH ODEHOLQJ RI LW DV D YLRODWLRQ RI WKH )LUVW
                                                                                   ,Q6FKZHLNHUY&KLOLFN\WKH&RXUWKHOGWKDWLQGLYLGXDOV
$PHQGPHQW UDWKHU WKDQ WKH )LIWK $PHQGPHQW VKRXOG EH RI QR                       DOOHJLQJWKDWWKHLUVRFLDOVHFXULW\EHQHILWVKDGEHHQWHUPLQDWHG
FRQVHTXHQFH LQ WHUPV RI WKH FRXUWjV GHWHUPLQDWLRQ WKDW D %LYHQV VXLW LV         LQYLRODWLRQRIWKHLUGXHSURFHVVULJKWVFRXOGQRWEULQJ%LYHQV
DSSURSULDWHl $SSHOODQWjV %U DW  +RZHYHU FODLPV DOOHJLQJ YLRODWLRQV        DFWLRQV DJDLQVW IHGHUDO VRFLDO VHFXULW\ DGPLQLVWUDWRUV
RI GXH SURFHVV DUH GLIIHUHQW WKDQ FODLPV DOOHJLQJ UHWDOLDWLRQ LQ YLRODWLRQ RI   6FKZHLNHU Y &KLOLFN\  86    %HFDXVH D
WKH )LUVW $PHQGPHQW 'RZQLH GRHV PHQWLRQ HPSOR\PHQW LQ &RXQW , RI KLV
FRPSODLQW EXW KH QRZKHUH DUJXHV WKDW WKH GHIHQGDQWV DGYHUVHO\ DIIHFWHG
                                                                                GDPDJHVUHPHG\ZDVQRWmLQFOXGHGLQWKHHODERUDWHUHPHGLDO
KLV HPSOR\PHQW VWDWXV ZLWKRXW    GXH SURFHVV  7KHUHIRUH WKLV DUJXPHQW LV      VFKHPHGHYLVHGE\&RQJUHVVlLWZDVXQDYDLODEOH,GDW
D QHZ FODLP DQG DV 'RZQLH GLG QRW UDLVH WKLV FODLP LQ WKH GLVWULFW FRXUW     $FFRUGLQJWRWKH&RXUW
ZH ZLOO QRW DGGUHVV RQ DSSHDO   6HH LQIUDQRWH   %ODNHO\    )G DW 
Q
    'RZQLHHWDOY&LW\RI                      1R       1R                          'RZQLHHWDOY&LW\RI        
      0LGGOHEXUJ+JWVHWDO                                                                              0LGGOHEXUJ+JWVHWDO

  >7@KHFRQFHSWRImVSHFLDOIDFWRUVFRXQVHOOLQJKHVLWDWLRQ             FRQVWLWXWLRQDOULJKWVLQUHWDOLDWLRQIRUEORZLQJWKHZKLVWOHRQ
  LQ WKH DEVHQFH RI DIILUPDWLYH DFWLRQ E\ &RQJUHVVl KDV        FRUUXSWJRYHUQPHQWDOFRQGXFWl$SSHOODQWjV%UDW:KLOH
  SURYHG WR LQFOXGH DQ DSSURSULDWH MXGLFLDO GHIHUHQFH WR        WKH3ULYDF\$FWGRHVQRWSURYLGHDVHSDUDWHGDPDJHVUHPHG\
  LQGLFDWLRQV WKDW FRQJUHVVLRQDO LQDFWLRQ KDV QRW EHHQ           IRU WKH LQWHQWLRQDO RU ZLOOIXO FUHDWLRQ PDLQWHQDQFH RU
  LQDGYHUWHQW:KHQWKHGHVLJQRID*RYHUQPHQWSURJUDP                GLVVHPLQDWLRQRIIDOVHUHFRUGVLQUHWDOLDWLRQIRUDQLQGLYLGXDOjV
  VXJJHVWV WKDW &RQJUHVV KDV SURYLGHG ZKDW LW FRQVLGHUV         )LUVW$PHQGPHQWULJKWVZHEHOLHYHWKDWUHWDOLDWLRQRQDQ\
  DGHTXDWH UHPHGLDO PHFKDQLVPV IRU FRQVWLWXWLRQDO                  EDVLVFOHDUO\FRQVWLWXWHVLQWHQWLRQDORUZLOOIXODFWLRQ,QIDFW
  YLRODWLRQV WKDW PD\ RFFXU LQ WKH FRXUVH RI LWV               WKH '& &LUFXLW UHFHQWO\ KHOG WKDW mLQWHQWLRQDO RU ZLOOIXOl
  DGPLQLVWUDWLRQ ZH KDYH QRW FUHDWHG DGGLWLRQDO %LYHQV          DFWLRQIRUWKHSXUSRVHVRIWKH3ULYDF\$FWGRHVFRPSUHKHQG
  UHPHGLHV                                                            )LUVW $PHQGPHQW UHWDOLDWLRQ 7RRODVSUDVKDG      Y %XUHDX RI
                                                                       3ULVRQV)G'&&LU7RRODVSUDVKDG
,GDW$OWKRXJKWKH&RXUWFRQFHGHGWKDWm>W@KHFUHDWLRQ          DIHGHUDOSULVRQHUDOOHJHGWKDWKHKDGEHHQWUDQVIHUUHGDQG
RI D %LYHQV UHPHG\ ZRXOG REYLRXVO\ RIIHU WKH SURVSHFW RI      UHFODVVLILHGDVDmVSHFLDORIIHQGHUlRQWKHEDVLVRIDIDOVLILHG
UHOLHIIRULQMXULHVWKDWPXVWQRZJRXQUHGUHVVHGlWKH&RXUW           WUDQVIHUPHPRUDQGXPSUHSDUHGLQUHWDOLDWLRQIRUKLVH[HUFLVH
FRQFOXGHG WKDW m&RQJUHVV    KDV QRW IDLOHG WR SURYLGH     RIKLV)LUVW$PHQGPHQWULJKWV7KH'&&LUFXLWH[SODLQHG
PHDQLQJIXOVDIHJXDUGVRUUHPHGLHVIRUWKHULJKWVRISHUVRQV            WKDWLQRUGHUIRUDSODLQWLIIWRVWDWHDFODLPIRUPRQH\GDPDJHV
VLWXDWHGDVUHVSRQGHQWVZHUHl,GDW                            XQGHUWKH3ULYDF\$FWWKHSODLQWLIIPXVWDVVHUWmLQDFFXUDWH
                                                                       UHFRUGVDJHQF\LQWHQWSUR[LPDWHFDXVDWLRQDQGDQµDGYHUVH
   ,QsRQHVWKLVFRXUWKHOGWKDWD79$HPSOR\HHFRXOGQRW             GHWHUPLQDWLRQjl,GDW7KHFRXUWWKHQFRQFOXGHGWKDW
EULQJD%LYHQVDFWLRQDJDLQVW79$RIILFLDOVIRUYLRODWLRQVRI          mUHWDOLDWRU\IDEULFDWLRQRISULVRQUHFRUGVZRXOGFHUWDLQO\PHHW
KLV)LUVWDQG)LIWK$PHQGPHQWULJKWVsRQHV)GDW         >RXU@ GHILQLWLRQ  RI D ZLOOIXO RU LQWHQWLRQDO 3ULYDF\ $FW
:HQRWHGWKDWm>V@LQFH6FKZHLNHUFRXUWVLQVHYHUDOLQVWDQFHV          YLRODWLRQlDQGmLQFODLPLQJUHWDOLDWRU\UHFODVVLILFDWLRQDQG
KDYHOLPLWHGWKHLULQTXLU\WRZKHWKHU&RQJUHVVKDVHQDFWHGD           WUDQVIHU 7RROVSUDVKDG DVVHUWV GHSULYDWLRQ RI KLV )LUVW
FRPSUHKHQVLYH DGPLQLVWUDWLYH VFKHPH JRYHUQLQJ WKH DUHD            $PHQGPHQW ULJKWV DQG FRQVHTXHQWO\ DQ µDGYHUVH
LQYROYHGZKLFKLQGLFDWHVWKDW&RQJUHVVjIDLOXUHWRSURYLGHD
GDPDJHVUHPHG\IRUFRQVWLWXWLRQDOYLRODWLRQVZDVGHOLEHUDWH
UDWKHU WKDQ LQDGYHUWHQWl ,G FLWDWLRQV RPLWWHG  :H WKHQ
VWDWHGWKDWm>L@QWKHILHOGRIIHGHUDOHPSOR\PHQWHYHQLIQR
UHPHG\DWDOOKDVEHHQSURYLGHGE\WKH>&LYLO6HUYLFH5HIRUP
$FWm&65$l@FRXUWVZLOOQRWFUHDWHD%LYHQVUHPHG\l,G               
                                                                            :H QRWH WKDW WKH 3ULYDF\ $FW LWVHOI VXSSRUWV WKLV FRQFOXVLRQ LQ WKDW
%HFDXVH sRQHV ZDV SURYLGHG VRPH UHOLHI XQGHU ERWK WKH          WKH $FW H[SOLFLWO\ UHFRJQL]HV WKDW WKH GDPDJHV SURYLVLRQ PD\ EH XVHG WR
&65$ DQG WKH (QHUJ\ 5HRUJDQL]DWLRQ $FW m(5$l ZH              YLQGLFDWH DW OHDVW RQH NLQG RI YLRODWLRQ RI DQ LQGLYLGXDOjV )LUVW
FRQFOXGHGWKDWm>W@KHIDFWWKDW&RQJUHVVKDVGHQLHGKLP          $PHQGPHQW ULJKWV    6HH  86&  DH

FRYHUDJHIRURWKHUNLQGVRISHUVRQQHODFWLRQVLVQRWDJURXQG              
IRULPSO\LQJMXGLFLDOUHOLHIEXWUDWKHUDJURXQGIRUGHQ\LQJ                7KH FRXUW DOVR QRWHG LQ UHJDUG WR WKH ZLOOIXOQHVV DQG LQWHQW RI WKH
                                                                       GHIHQGDQWV WKDW m>L@W PDNHV QR GLIIHUHQFH WKDW RWKHU %XUHDX VWDII PHPEHUV
MXGLFLDOUHOLHIl,G                                                 LQ GHFLGLQJ WR WUDQVIHU 7RRODVSUDVKDG PD\ KDYH UHDVRQDEO\ UHOLHG RQ WKH
                                                                       PHPRUDQGXP 5HDVRQDEOH UHOLDQFH E\ VRPH HPSOR\HHV FDQQRW LPPXQL]H
  $GGLWLRQDOO\LQ)LVKEXUQY%URZQZHKHOGWKDWDWD[SD\HU          DQ DJHQF\ IURP WKH 3ULYDF\ $FW FRQVHTXHQFHV RI HPSOR\LQJ RWKHU
FRXOG QRW EULQJ D %LYHQV DFWLRQ DJDLQVW ,56 DJHQWV IRU                                                                 7RRODVSUDVKDG
                                                                       LQGLYLGXDOV ZKR DOOHJHGO\ GHOLEHUDWHO\ IDOVLI\ UHFRUGVl               
                                                                        )G DW  TXRWDWLRQ RPLWWHG
    'RZQLHHWDOY&LW\RI                      1R       1R                       'RZQLHHWDOY&LW\RI       
      0LGGOHEXUJ+JWVHWDO                                                                           0LGGOHEXUJ+JWVHWDO

UHJXODWHVWKHFROOHFWLRQPDLQWHQDQFHXVHDQGGLVVHPLQDWLRQ          YLRODWLRQV RI KHU )RXUWK $PHQGPHQW ULJKWV  )LVKEXUQ Y
RILQIRUPDWLRQFRQFHUQLQJLQGLYLGXDOVlTXRWDWLRQRPLWWHG          %URZQ)GWK&LU:HVWDWHGWKDW
$OWKRXJK &RXQWV , DQG ;, JHQHUDOO\ UHIHU WR mDFWLRQVl RU      m&RQJUHVVKDVSURYLGHGDGDPDJHVUHPHG\IRUWKHUHFNOHVVRU
mDFWVlE\WKHGHIHQGDQWVDOOWKUHHSDUWVRI6LHJHOjVDOOHJHG          LQWHQWLRQDOGLVUHJDUGRI,QWHUQDO5HYHQXH&RGH3URYLVLRQVE\
mFDPSDLJQWRGLVFUHGLWl'RZQLHDVGHVFULEHGLQ'RZQLHjV               ,56HPSOR\HHVLQFROOHFWLQJWD[HV)XUWKHUPRUH&RQJUHVV
FRPSODLQW LQYROYHG WKH FUHDWLRQ PDLQWHQDQFH RU                 XQHTXLYRFDOO\ VWDWHG WKDW >VXFK SURYLVLRQ@ LV WKH H[FOXVLYH
GLVVHPLQDWLRQRIIDOVHUHFRUGVRQ'RZQLH0RUHRYHUDWRUDO           UHPHG\IRUUHFRYHULQJGDPDJHVUHVXOWLQJIURPVXFKDFWLRQVl
DUJXPHQW 'RZQLHjV FRXQVHO FRQFHGHG WKDW 'RZQLHjV                 ,GDWFLWDWLRQVDQGTXRWDWLRQRPLWWHG$OWKRXJK WKH
FRPSODLQWUHDOO\RQO\LQYROYHGWKHFUHDWLRQPDLQWHQDQFHDQG          GDPDJHVSURYLVLRQGRHVQRWPHQWLRQFRQVWLWXWLRQDOYLRODWLRQV
GLVVHPLQDWLRQRIIDOVHUHFRUGV                                        ZHQRWHGWKDWm>W@KHVHFDUHIXOO\FUDIWHGOHJLVODWLYHUHPHGLHV
                                                                       FRQILUP WKDW LQ WKH SROLWLFDOO\ VHQVLWLYH UHDOP RI WD[DWLRQ
   2Q LWV IDFH WKHQ 'RZQLHjV FRPSODLQW DSSHDUV RQO\ WR       &RQJUHVVjVUHIXVDOWRSHUPLWXQUHVWULFWHGGDPDJHDFWLRQVE\
LQYROYH D ZURQJ n WKH LQWHQWLRQDO DQG ZLOOIXO FUHDWLRQ        WD[SD\HUVKDV QRWEHHQLQDGYHUWHQWl,GDWTXRWDWLRQ
PDLQWHQDQFHDQGGLVVHPLQDWLRQRIIDOVHUHFRUGVE\IHGHUDO             RPLWWHG
DJHQF\ HPSOR\HHV n IRU ZKLFK &RQJUHVV KDV DOUHDG\
SURYLGHGDPHDQLQJIXOUHPHG\'RZQLHFRQWHQGVKRZHYHU                 7KHGLVWULFWFRXUWFRQFOXGHGLQWKLVFDVHWKDWWKH3ULYDF\
WKDWm&RQJUHVVGLGQRWH[SOLFLWO\GHFODUHWKH3ULYDF\$FWWREH        $FWmGLUHFWO\DGGUHVVHVDQGUHJXODWHVWKHFRQGXFWVXUURXQGLQJ
D VXEVWLWXWH IRU DQ DFWLRQ GLUHFWO\ XQGHU WKH &RQVWLWXWLRQl   WKHµEODFNEDOOjPHPRRIZKLFK'RZQLHFRPSODLQVl'RZQLH
$SSHOODQWjV %U DW   ,W LV WUXH WKDW &RQJUHVV GLG QRW     ) 6XSS G DW   ,Q WKH GLVWULFW FRXUWjV RUGHU RI
H[SOLFLWO\GHFODUHWKH3ULYDF\$FWWREHHLWKHUDVXEVWLWXWHIRU       6HSWHPEHU   LQ ZKLFK LW JUDQWHG LQ SDUW WKH
DQ DFWLRQ GLUHFWO\ XQGHU WKH &RQVWLWXWLRQ RU DQ H[FOXVLYH      GHIHQGDQWVjPRWLRQWRGLVPLVVWKHFRXUWKHOGRQO\WKDWWKH
UHPHG\+RZHYHUWKH%XVKDQG6FKZHLNHUWHVWIRUmVSHFLDO             3ULYDF\ $FW SUHFOXGHG 'RZQLHjV %LYHQV DFWLRQ DV WR WKH
IDFWRUVFRXQVHOOLQJKHVLWDWLRQLQWKH DEVHQFHRIDIILUPDWLYH          PDLQWHQDQFHDQGGLVVHPLQDWLRQRIWKHPHPR+RZHYHULQLWV
DFWLRQE\&RQJUHVVl GRHVQRWUHTXLUHHLWKHUWKDW&RQJUHVV            RUGHU RI 6HSWHPEHU   LQ ZKLFK LW JUDQWHG WKH
H[SOLFLWO\GHFODUHDQmHODERUDWHUHPHGLDOVFKHPHlWREHDQ             GHIHQGDQWVj PRWLRQ WR UHFRQVLGHU WKH FRXUW KHOG WKDW WKH
DGHTXDWHDOWHUQDWLYHUHPHG\WRD%LYHQVUHPHG\RUWKDWWKH             3ULYDF\ $FW SUHFOXGHG 'RZQLHjV %LYHQV DFWLRQ DV WR WKH
mHODERUDWHUHPHGLDOVFKHPHlGHFODUHLWVHOIWREHDQH[FOXVLYH          FUHDWLRQRIWKHPHPRDVZHOO7KH3ULYDF\$FWSURYLGHVWKDW
UHPHG\:HEHOLHYHWKDWLQWKLVFDVHWKHIDFWWKDWWKH3ULYDF\
$FW LV D FRPSUHKHQVLYH OHJLVODWLYH VFKHPH WKDW SURYLGHV D        :KHQHYHUDQ\DJHQF\IDLOVWRPDLQWDLQDQ\UHFRUG
PHDQLQJIXO UHPHG\ IRU WKH ZURQJ WKDW 'RZQLH DOOHJHV LV           FRQFHUQLQJDQ\LQGLYLGXDOZLWKVXFKDFFXUDF\UHOHYDQFH
VXIILFLHQWDVDmVSHFLDOIDFWRU>@FRXQVHOOLQJKHVLWDWLRQlIRUXV         WLPHOLQHVV DQG FRPSOHWHQHVV DV LV QHFHVVDU\ WR DVVXUH
WRUHIXVHWRLPSO\DVHSDUDWHGDPDJHVUHPHG\XQGHU%LYHQV               IDLUQHVV LQ DQ\ GHWHUPLQDWLRQ UHODWLQJ WR WKH
                                                                         TXDOLILFDWLRQVFKDUDFWHUULJKWVRURSSRUWXQLWLHVRIRU
  'RZQLH DOVR FRQWHQGV WKDW DOWKRXJK WKH 3ULYDF\ $FW              EHQHILWVWRWKHLQGLYLGXDOWKDWPD\EHPDGHRQWKHEDVLV
SURYLGHVDGDPDJHVUHPHG\IRUWKHmLQWHQWLRQDORUZLOOIXOl               RIVXFKUHFRUGDQGFRQVHTXHQWO\DGHWHUPLQDWLRQLVPDGH
FUHDWLRQ PDLQWHQDQFH RU GLVVHPLQDWLRQ RI IDOVH UHFRUGV        ZKLFK LV DGYHUVH WR WKH LQGLYLGXDO RU IDLOV WR FRPSO\
86&DJLWGRHVQRWSURYLGHDGDPDJHVUHPHG\                ZLWK DQ\ RWKHU SURYLVLRQ RI WKLV VHFWLRQ RU DQ\ UXOH
IRUmZLOOIXODQGLQWHQWLRQDOFRQGXFWWKDWLVGRQHVSHFLILFDOO\           SURPXOJDWHG WKHUHXQGHU LQ VXFK D ZD\ DV WR KDYH DQ
DQG LQWHQWLRQDOO\ IRU WKH SXUSRVH RI YLRODWLQJ RQHjV              DGYHUVHHIIHFWRQDQLQGLYLGXDOWKHLQGLYLGXDOPD\
       'RZQLHHWDOY&LW\RI                    1R       1R                       'RZQLHHWDOY&LW\RI       
         0LGGOHEXUJ+JWVHWDO                                                                         0LGGOHEXUJ+JWVHWDO

  EULQJDFLYLODFWLRQDJDLQVWWKHDJHQF\DQGWKHGLVWULFW             KHVXIIHUHGZHVKRXOGQRWLPSO\D%LYHQVUHPHG\IRU'RZQLH
  FRXUWVRIWKH8QLWHG6WDWHVVKDOOKDYHMXULVGLFWLRQLQWKH            DJDLQVW 6LHJHO DQG 6FKQHLGHU GLUHFWO\ XQGHU  WKH )LUVW
  PDWWHUVXQGHUWKHSURYLVLRQVRIWKLVVXEVHFWLRQ                      $PHQGPHQWRIWKH8QLWHG6WDWHV&RQVWLWXWLRQ&RXQWV,,,
                                                                        DQG;,RI'RZQLHjVDQG:KHDWjVFRPSODLQWDOOHJHDVIROORZV
86&DJ&	'7KH$FWGHILQHVmPDLQWDLQl
DV LQFOXGLQJ mPDLQWDLQ FROOHFW XVH RU GLVVHPLQDWHl DQG         &RXQW,3ODLQWLIIVDUHHQWLWOHGWRVHHNHPSOR\PHQWLQ
mUHFRUGlDVmDQ\LWHPFROOHFWLRQRUJURXSLQJRILQIRUPDWLRQ             WKHLUFKRVHQSURIHVVLRQEXWKDYHEHHQDQGFRQWLQXHWREH
DERXWDQLQGLYLGXDOWKDWLVPDLQWDLQHGE\DQDJHQF\LQFOXGLQJ            SUHFOXGHGIURPVXFKHPSOR\PHQWDVDGLUHFWUHVXOWRIWKH
>KLV@HPSOR\PHQWKLVWRU\l86&DD	            DFWLRQVRIWKHGHIHQGDQWVDQGLQUHWDOLDWLRQIRUSODLQWLII
,Q DGGLWLRQ WKH $FW SURYLGHV WKDW m>H@DFK DJHQF\ WKDW            'RZQLH H[HUFLVLQJ KLV FRQVWLWXWLRQDO ULJKWV RI IUHH
PDLQWDLQVDV\VWHPRIUHFRUGVVKDOOnPDLQWDLQQRUHFRUG            VSHHFK IUHH H[SUHVVLRQ DQG IUHH DVVRFLDWLRQ DQG VXFK
GHVFULELQJKRZDQ\LQGLYLGXDOH[HUFLVHVULJKWVJXDUDQWHHGE\              DFWLRQVYLRODWHSODLQWLIIVjFRQVWLWXWLRQDOO\SURWHFWHGULJKWV
WKH)LUVW$PHQGPHQWXQOHVVH[SUHVVO\DXWKRUL]HGE\VWDWXWH                JXDUDQWHHGXQGHUWKH)LUVWDQG)RXUWHHQWKDPHQGPHQWV
RUE\WKHLQGLYLGXDODERXWZKRPWKHUHFRUGLVPDLQWDLQHGRU               WRWKH86&RQVWLWXWLRQ
XQOHVVSHUWLQHQWWRDQGZLWKLQWKHVFRSHRIDQDXWKRUL]HGODZ
HQIRUFHPHQWDFWLYLW\l86&DH)LQDOO\WKH              &RXQW,,7KHDFWLRQVRIWKHGHIHQGDQWVLQPDLQWDLQLQJ
$FWSURYLGHVDGDPDJHVUHPHG\                                            IDOVH LQIRUPDWLRQ DERXW SODLQWLII 'RZQLH LQ ERWK WKH
                                                                          QDWLRQDO SROLFH FRPSXWHUV DQG LQ WKH DIRUHPHQWLRQHG
  ,QDQ\VXLWEURXJKWXQGHUWKHSURYLVLRQVRIVXEVHFWLRQ                  mEODFNEDOO PHPRl FRQVWLWXWH D YLRODWLRQ RI SODLQWLIIVj
  J& RU ' RI WKLV VHFWLRQ LQ ZKLFK WKH FRXUW            )LUVW$PHQGPHQWULJKWVLQWKDWVXFKDFWLRQVZHUHWDNHQ
  GHWHUPLQHVWKDWWKHDJHQF\DFWHGLQDPDQQHUZKLFKZDV                  LQUHWDOLDWLRQIRUSODLQWLIIVH[HUFLVLQJWKHLUOHJLWLPDWHDQG
  LQWHQWLRQDORUZLOOIXOWKH8QLWHG6WDWHVVKDOOEHOLDEOHWR            SURWHFWHG )LUVW $PHQGPHQW ULJKWV LH H[SRVLQJ
  WKHLQGLYLGXDOLQDQDPRXQWHTXDOWRWKHVXPRIn                       JRYHUQPHQWDOFRUUXSWLRQ
    $ DFWXDOGDPDJHVVXVWDLQHGE\WKHLQGLYLGXDODVD
         UHVXOW RI WKH UHIXVDO RU IDLOXUH EXW LQ QR FDVH        &RXQW;,7KHDFWVRIDOOGHIHQGDQWVDFWLQJLQFRQFHUW
         VKDOO D SHUVRQ HQWLWOHG WR UHFRYHU UHFHLYH OHVV           ZLWKRWKHUVFRQVWLWXWHVDFRQVSLUDF\WRGHSULYHSODLQWLIIV
         WKDQWKHVXPRIDQG                                      RIWKHLUFRQVWLWXWLRQDOO\JXDUDQWHHGFLYLOULJKWV
    % WKHFRVWVRIWKHDFWLRQWRJHWKHUZLWKUHDVRQDEOH
         DWWRUQH\IHHVDVGHWHUPLQHGE\WKHFRXUW                      s$DW&RPSO7KHVHFRXQWVDOOHJHZURQJVWKDW
                                                                        FRXOG EH DGGUHVVHG XQGHU WKH 3ULYDF\ $FW   86&
86&DJ                                                 DJ&	'VHHDOVR&DUGDPRQHY&RKHQ
                                                                        )G   WK &LU  m7KH 3ULYDF\ $FW RI 
 :HDJUHHZLWKWKHGLVWULFWFRXUWWKDWEHFDXVHWKH3ULYDF\
$FW LV D FRPSUHKHQVLYH OHJLVODWLYH VFKHPH WKDW SURYLGHV D
PHDQLQJIXOUHPHG\IRUWKHNLQGRIZURQJ'RZQLHDOOHJHVWKDW                 
                                                                              :H HPSKDVL]H WKDW ZH RQO\ DGGUHVV KHUH FODLPV LQYROYLQJ WKH
                                                                        FUHDWLRQ PDLQWHQDQFH DQG GLVVHPLQDWLRQ RI IDOVH UHFRUGV E\ IHGHUDO
                                                                        DJHQF\ HPSOR\HHV ,Q RWKHU FRQWH[WV ZH KDYH UHFRJQL]HG WKDW D %LYHQV
     
     7KH WHUP mDJHQF\l IRU WKH SXUSRVHV RI WKH $FW LQFOXGHV H[HFXWLYH   UHPHG\ PD\ EH LPSOLHG XQGHU WKH )LUVW $PHQGPHQW 6HH HJ 6KHKHH Y
GHSDUWPHQWV 6HH &DUGDPRQH Y &RKHQ  )G   WK &LU        /XWWUHOO  )G  WK &LU  FHUW GHQLHG  86 
 %RWK WKH 86 &XVWRPV 6HUYLFH DQG WKH $7) DUH WKXV DJHQFLHV      /DYDGR Y .HRKDQH  )G  WK &LU 
