       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


.$7+< 6783$.7+5$//             ;
HWDO                           
           3ODLQWLIIV$SSHOOHHV 
                                     1R
                                  
            Y                     !
                                  
                                  
'$1,(/ */,&.0$1HWDO          
                    'HIHQGDQWV 
                                  
7+( :,/'(51(66 62&,(7<           
                                  
HWDO                           
         3URSRVHG,QWHUYHQRUV 
                     $SSHOODQWV 
                                  
                                  
                                  
                                 1
        $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW0DUTXHWWH
   1Rn5REHUW+ROPHV%HOO'LVWULFWsXGJH
             $UJXHG'HFHPEHU
         'HFLGHGDQG)LOHG6HSWHPEHU




                           
     6WXSDN7KUDOOHWDOY*OLFNPDQHWDO       1R

    %HIRUH%$7&+(/'(5DQG0225(&LUFXLWsXGJHV
                2j0$//(<'LVWULFWsXGJH
                      BBBBBBBBBBBBBBBBB
                           &2816(/
$5*8(':LOOLDP/8QGHUZRRG)$(*5(	%(1621
0LQQHDSROLV0LQQHVRWDIRU$SSHOODQWV:LOOLDP33HQGOH\
02817$,1 67$7(6 /(*$/ )281'$7,21 'HQYHU
&RORUDGR IRU $SSHOOHHV  21 %5,()  :LOOLDP /
8QGHUZRRG (OL]DEHWK + 6FKPLHVLQJ )$(*5( 	
%(16210LQQHDSROLV0LQQHVRWDIRU$SSHOODQWV:LOOLDP
33HQGOH\$GDP75HHYHV02817$,167$7(6/(*$/
)281'$7,21'HQYHU&RORUDGRIRU$SSHOOHHV
  2j0$//(<'sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQ
ZKLFK%$7&+(/'(5sMRLQHG0225(sSS
GHOLYHUHGDVHSDUDWHGLVVHQWLQJRSLQLRQ
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
   2j0$//(<'LVWULFWsXGJH7KLVFDVHUDLVHVWKHSXUHO\
SURFHGXUDOLVVXHRIZKHWKHUWKHGLVWULFWFRXUWSURSHUO\GHQLHG
D PRWLRQ WR LQWHUYHQH  )RU WKH UHDVRQV VWDWHG EHORZ ZH
$)),50
,/LWLJDWLRQ+LVWRU\
  7KLVFDVHFRPHVWRXVZLWKDJUHDWGHDORIKLVWRU\ZKLFKZH
VXPPDUL]H KHUH  &URRNHG /DNH LV ORFDWHG LQ WKH XSSHU
SHQLQVXOD RI 0LFKLJDQ QHDU WKH :LVFRQVLQ ERUGHU  6LQFH
DERXWRIWKHODQGVXUURXQGLQJ&URRNHG/DNHKDV
EHHQRZQHGE\WKHIHGHUDOJRYHUQPHQW ZKLOH UHPDLQV


    
     7KH +RQRUDEOH .DWKOHHQ 0F'RQDOG 2j0DOOH\ 8QLWHG 6WDWHV 'LVWULFW
sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
    6WXSDN7KUDOOHWDOY*OLFNPDQHWDO     1R       1R       6WXSDN7KUDOOHWDOY*OLFNPDQHWDO            

   1HYHUWKHOHVV WKH :LOGHUQHVV $VVRFLDWLRQ DUJXHV WKDW LWV     SULYDWHO\KHOGWKHUHDUHRQO\DKDQGIXORISULYDWHSDUFHOVRI
LQWHUHVWV ZRXOG QRW EH DGHTXDWHO\ UHSUHVHQWHG LQ DQ\           ODQG  7KH SULYDWH ODQGRZQHUV LQFOXGH  WKH *DMHZVNLV
VHWWOHPHQW QHJRWLDWLRQV WKDW PD\ WDNH SODFH EHWZHHQ WKH        SODLQWLIIVZKRUXQDPRWRUERDWILVKLQJFDPSDQGUHVRUWRQWKH
SDUWLHV 8QOLNHWKHPDMRULW\,EHOLHYHWKDWWKH:LOGHUQHVV         ODNHSODLQWLII.DWK\6WXSDN7KUDOOZKRRZQVDQGUHQWV
$VVRFLDWLRQjV FRQFHUQV DUH YDOLG  7KH OLWLJDWLRQ EHWZHHQ      RXWODNHIURQWFDELQVEHORQJLQJWRKHUIDPLO\VLQFHDQG
WKHVHSDUWLHVKDVVSDQQHGILYH\HDUVDQGWKHUHDUHFXUUHQWO\         SURSRVHGLQWHUYHQRU7KRPDV&KXUFKZKRKDVRZQHGD
WZRRWKHUDSSHDOVUHODWHGWRWKHLQVWDQWFDVHSHQGLQJLQWKLV         ODNHIURQWFDELQVLQFH7KHSULYDWHO\KHOGODQGLVDOORQ
FRXUW7KHIHGHUDOGHIHQGDQWVKDYHDSSHDOHGWKHGHFLVLRQLQ          DVPDOOED\RQWKHQRUWKVLGHRIWKHODNH8QGHU0LFKLJDQ
6WXSDN7KUDOO ,, LQ ZKLFK WKH GLVWULFW FRXUW KHOG LQYDOLG    ODZ WKH SULYDWH ODQGRZQHUV WRJHWKHU ZLWK WKH IHGHUDO
FHUWDLQ PRWRU ERDWLQJ UHVWULFWLRQV  7KDW DSSHDO KDV EHHQ     JRYHUQPHQW KROG LQ FRPPRQ   FHUWDLQ ULSDULDQ ULJKWV LQ WKH
VWD\HG SHQGLQJ UHVROXWLRQ RI WKH SODLQWLIIjV DSSHDO RI WKH    HQWLUHW\RI&URRNHG/DNH
GLVWULFW FRXUWjV JUDQW RI VXPPDU\ MXGJPHQW WR WKH IHGHUDO
GHIHQGDQWVLQWKLVFDVHZKLFKLWVHOIKDVEHHQVWD\HGSHQGLQJ           :KHQWKHJRYHUQPHQWSXUFKDVHGWKH&URRNHG/DNHODQGLQ
WKHRXWFRPHRIWKLVDSSHDO7KHSRVVLELOLW\LVUHDOWKDWWKH         LWPDGHWKHODQGSDUW RIWKH2WWDZD1DWLRQDO)RUHVW
IHGHUDO GHIHQGDQWV PD\ EH ZLOOLQJ WR HQWHU LQWR VHWWOHPHQW    ZKLFKLVDGPLQLVWHUHGE\WKH8QLWHG6WDWHV)RUHVW6HUYLFH
QHJRWLDWLRQVLQRUGHUWRUHVROYHWKHVHLVVXHVDQGLIWKHSDUWLHV     6XEVHTXHQWO\ LQ  &RQJUHVV SDVVHG WKH 0LFKLJDQ
GREHJLQVHWWOHPHQWQHJRWLDWLRQVWKLVZRXOGSUHVHQWWKHYHU\         :LOGHUQHVV$FW7KLV$FWDPRQJRWKHUWKLQJVFUHDWHGWKH
FRQIOLFW LQ LQWHUHVW EHWZHHQ WKH IHGHUDO GHIHQGDQWV DQG WKH   m6\OYDQLD:LOGHUQHVV$UHDlDOORI&URRNHG/DNHH[FHSWIRU
:LOGHUQHVV $VVRFLDWLRQ UHJDUGLQJ ZLOGHUQHVV PDQDJHPHQW            WKHVPDOOQRUWKHUQED\SRUWLRQZKHUHWKHSULYDWHODQGRZQHUV
LVVXHV WKDW ZDV RXWOLQHG DERYH  &I 0LOOH /DFV %DQG RI     DUH ORFDWHG ZDV LQFOXGHG ZLWKLQ WKLV 6\OYDQLD :LOGHUQHVV
&KLSSHZD,QGLDQVY0LQQHVRWD)GWK&LU           $UHD7KHQLQWKH)RUHVW6HUYLFHSDVVHGDUHJXODWLRQ
m$OWKRXJKWKH%DQGQRWHVWKDWWKHFRXQWLHVjDQGWKH            NQRZQ DV m$PHQGPHQW 2QHl SURKLELWLQJ DPRQJ RWKHU
ODQGRZQHUVj SURSRVHG DQVZHUV DUH DOPRVW LGHQWLFDO WR WKH       WKLQJV  XVH RI KRXVHERDWV RU VDLOERDWV RQ DQ\ SDUW RI
DQVZHUILOHGE\WKHVWDWHWKHUHLVQRDVVXUDQFHWKDWWKHVWDWH       &URRNHG/DNHO\LQJZLWKLQWKH6\OYDQLD:LOGHUQHVV$UHDDQG
ZLOOFRQWLQXHWRVXSSRUWDOOWKHSRVLWLRQVWDNHQLQLWVLQLWLDO       XVHRIQRQEXUQDEOHGLVSRVDEOHIRRGFRQWDLQHUVHJEHHU
SOHDGLQJ0RUHRYHULIWKHFDVHLVGLVSRVHGRIE\VHWWOHPHQW         ERWWOHVZLWKLQWKH:LOGHUQHVV$UHD
UDWKHUWKDQE\OLWLJDWLRQZKDWWKHVWDWHSHUFHLYHVDVEHLQJLQ
LWVLQWHUHVWPD\GLYHUJHVXEVWDQWLDOO\IURPWKHFRXQWLHVjDQG           6WXSDN7KUDOODQGWKH*DMHZVNLVUHVSRQGHGE\ILOLQJVXLW
WKHODQGRZQHUVjLQWHUHVWVl                                         FODLPLQJWKDW$PHQGPHQW2QHKDGWKHHIIHFWRILQWHUIHULQJ
                                                                      ZLWKWKHLUVWDWHODZULSDULDQULJKWV7KLVFDVHLVNQRZQ DV
  , WKHUHIRUH EHOLHYH WKDW WKH :LOGHUQHVV $VVRFLDWLRQ KDV      m6WXSDN7KUDOO,l7KHSODLQWLIIV XOWLPDWHO\ORVWLQDYHU\
VXIILFLHQWO\GHPRQVWUDWHGWKDWUHSUHVHQWDWLRQRILWVLQWHUHVWV        FORVHEDWWOH6WXSDN7KUDOOY8QLWHG6WDWHV)6XSS
PD\EHLQDGHTXDWH$FFRUGLQJO\,ZRXOGUHYHUVHWKHGLVWULFW         :'0LFKDIILUPHG)GWK&LU
FRXUWjV GHQLDO RI WKH :LOGHUQHVV $VVRFLDWLRQjV PRWLRQ WR       UHKHDULQJHQEDQFJUDQWHGDQGRSLQLRQYDFDWHG)G
LQWHUYHQH                                                            WK&LUDIILUPHGHQEDQFE\DQHTXDOO\GLYLGHGFRXUW

                                                                          
                                                                           7KH\ DFWXDOO\ KROG mOLWWRUDOl ULJKWV UHIHUULQJ WR D ODNH QRW
                                                                      mULSDULDQl ULJKWV UHIHUULQJ WR D ULYHU EXW 0LFKLJDQ FDVH ODZ UHIHUV WR
                                                                      ERWK ODNH DQG ULYHUFRQQHFWHG ULJKWV DV ULSDULDQ7KLHV Y +RZODQG 
                                                                      1:G   Q 0LFK 
       6WXSDN7KUDOOHWDOY*OLFNPDQHWDO        1R        1R      6WXSDN7KUDOOHWDOY*OLFNPDQHWDO      

)GWK &LUFHUWGHQLHG86                  TXHVWLRQ LV ZKHWKHU WKH LQWHUHVWV RI WKH :LOGHUQHVV
7KHYDOLGLW\RI$PHQGPHQW2QHLVQRWDWLVVXHLQWKLV              $VVRFLDWLRQ DUH DGHTXDWHO\ UHSUHVHQWHG E\ WKH IHGHUDO
FDVH                                                                       GHIHQGDQWV
   ,Q  WKH )RUHVW 6HUYLFH SDVVHG DQRWKHU UHJXODWLRQ                :LWK UHJDUG WR WKLV ILQDO HOHPHQW RUGLQDULO\ D SURSRVHG
NQRZQDVm$PHQGPHQW)LYHlWKLVWLPHSURKLELWLQJXVHRI                   LQWHUYHQRUQHHGRQO\VKRZWKDWUHSUHVHQWDWLRQRILWVLQWHUHVWV
QRQHOHFWULF PRWRUERDWV  LQ WKH 6\OYDQLD :LOGHUQHVV $UHD            mµPD\EHjLQDGHTXDWHDQGWKHEXUGHQRIPDNLQJWKDWVKRZLQJ
6WXSDN7KUDOODQGWKH*DMHZVNLVDJDLQILOHGVXLWWKLVWLPH                VKRXOG EH WUHDWHG DV PLQLPDOl  7UERYLFK Y 8QLWHG 0LQH
WKH\ZRQLQGLVWULFWFRXUW6WXSDN7KUDOOY*OLFNPDQ)              :RUNHUV86Qm,WKDVEHHQVDLG
6XSS  :' 0LFK   7KLV FDVH LV NQRZQ DV              WKDWJLYHQWKLVVWDQGDUGWKHDSSOLFDQWVKRXOGEHWUHDWHGDVWKH
m6WXSDN7KUDOO,,l$VHSDUDWHDSSHDOLVFXUUHQWO\SHQGLQJLQ              EHVWMXGJHRIZKHWKHUWKHH[LVWLQJSDUWLHVDGHTXDWHO\UHSUHVHQW
6WXSDN7KUDOO ,, EXW WKLV &RXUW LV KROGLQJ WKH DSSHDO LQ          KLVRUKHULQWHUHVWVDQGWKDWDQ\GRXEWUHJDUGLQJDGHTXDF\RI
DEH\DQFH VR WKDW  ZH PD\ ILUVW LVVXH D UXOLQJ LQ WKLV       UHSUHVHQWDWLRQVKRXOGEHUHVROYHGLQIDYRURI WKHSURSRVHG
DSSHDODQGWKHDVVLJQHGSDQHOPD\ILUVWLVVXHDUXOLQJLQ              LQWHUYHQRUVl0225(j6 )('(5$/ 35$&7,&(>@>D@
WKHUHODWHGDSSHDOIURPWKHILQDOMXGJPHQWLQ6WXSDN7KUDOO                 DW  G HG IRRWQRWH RPLWWHG  7KH GLVWULFW FRXUW
,,,ZKLFKLVGHVFULEHGEHORZ7KHYDOLGLW\RI$PHQGPHQW                   UHO\LQJ RQ WKH SDUHQV SDWULDH GRFWULQH KHOG WKDW WKH
)LYHLVDOVRQRWDWLVVXHLQWKLVFDVH                                     :LOGHUQHVV $VVRFLDWLRQ KDG IDLOHG WR PDNH mD VWURQJ
                                                                            DIILUPDWLYH VKRZLQJl WKDW WKH IHGHUDO GHIHQGDQWV ZHUH
   0RVWUHFHQWO\LQ6WXSDN7KUDOODQGWKHRZQHUVRI                  LQDGHTXDWHUHSUHVHQWDWLYHVRILWVLQWHUHVWVs$DW'&W
ILYH RWKHU SLHFHV RI &URRNHG /DNH SULYDWH ODQG ILOHG WKLV         2S LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG  7KH PDMRULW\
ODZVXLW WR FKDOOHQJH WKH )RUHVW 6HUYLFHjV XQGHUO\LQJ                  FRUUHFWO\QRWHVWKDWWKHGLVWULFWFRXUWjVUHOLDQFHRQWKHSDUHQV
MXULVGLFWLRQ WR UHJXODWH WKH 6\OYDQLD :LOGHUQHVV $UHD WKLV          SDWULDH GRFWULQH ZDV HUURQHRXV DV ZH KDYH SUHYLRXVO\
UHSUHVHQWHGDGLIIHUHQWWDFWLFWKDQWKHSODLQWLIIVXVHGLQWKHLU            UHMHFWHGWKLVGRFWULQH6HH*UXWWHU)GDW
SUHYLRXVODZVXLWVZKHUHWKH\FKDOOHQJHGWKH)RUHVW6HUYLFHjV
LQGLYLGXDO UHJXODWLRQV  6SHFLILFDOO\ LQ WKLV DFWLRQ WKH              ,WLVFOHDUWKDWZLWKUHJDUGWRZLOGHUQHVVPDQDJHPHQWLVVXHV
ODQGRZQHUSODLQWLIIVDUJXHWKDWZKHQ&RQJUHVVSDVVHGWKH               WKH LQWHUHVWV RI WKH IHGHUDO GHIHQGDQWV DQG WKH :LOGHUQHVV
0LFKLJDQ:LOGHUQHVV$FWLWUHTXLUHGWKH)RUHVW6HUYLFHWR                  $VVRFLDWLRQDUHOLNHO\WRGLYHUJHZKLOHERWKSDUWLHVjEURDG
FUHDWHDQmRIILFLDOPDSDQGOHJDOGHVFULSWLRQlRIWKH6\OYDQLD              JRDOLVWRSUHVHUYHWKHZLOGHUQHVVFKDUDFWHURIWKH6\OYDQLD
:LOGHUQHVV$UHDWKH)RUHVW6HUYLFHQHYHUGLGVRWKXV             :LOGHUQHVVWKH:LOGHUQHVV$VVRFLDWLRQKDVRIWHQDGYRFDWHG
&URRNHG/DNHZDVQRWZLWKLQDQ\mRIILFLDOERXQGDU\lRIWKH                  IRU JUHDWHU PDQDJHPHQW UHVWULFWLRQV WKDQ WKH IHGHUDO
6\OYDQLD :LOGHUQHVV $UHD DQG  WKH )RUHVW 6HUYLFH                 GHIHQGDQWVWKLQNDSSURSULDWH7KHLQVWDQWOLWLJDWLRQKRZHYHU
WKHUHIRUHKDGQRDXWKRULW\WRSDVVDQ\UHJXODWLRQVJRYHUQLQJ                LVQRWDFKDOOHQJHWRSDUWLFXODUPDQDJHPHQWUHVWULFWLRQVEXW
&URRNHG/DNH7KHODQGRZQHUSODLQWLIIVQDPHGDVGHIHQGDQWV                 LVUDWKHUDFKDOOHQJHWRWKHIHGHUDOGHIHQGDQWVjDXWKRULW\WR
YDULRXV IHGHUDO DJHQFLHV DQG HPSOR\HHV UHIHUUHG WR                   LQFOXGH&URRNHG/DNHZLWKLQWKHERXQGDULHVRIWKH6\OYDQLD
FROOHFWLYHO\EHORZDVWKHm)HGHUDO'HIHQGDQWVl7KLVFDVHLV               :LOGHUQHVV  2Q WKLV LVVXH WKH LQWHUHVWV RI WKH :LOGHUQHVV
NQRZQDVm6WXSDN7KUDOO,,,l                                             $VVRFLDWLRQ DQG WKH IHGHUDO GHIHQGDQWV DUH ODUJHO\
                                                                            FRH[WHQVLYHERWKPDLQWDLQWKDWWKHERXQGDULHVRIWKH6\OYDQLD
                                                                            :LOGHUQHVVDVRULJLQDOO\GHVLJQDWHGDUHSURSHU
    
    7KHUH DUH DFWXDOO\  LQGLYLGXDO SODLQWLIIV LQ WKLV FDVH PRVW RI
ZKRP DUH KXVEDQGV DQG ZLYHV DOO WROG WKH\ RZQ  SLHFHV RI SULYDWH ODQG
    6WXSDN7KUDOOHWDOY*OLFNPDQHWDO        1R       1R      6WXSDN7KUDOOHWDOY*OLFNPDQHWDO          

VXPPDU\ MXGJPHQW PRWLRQl  ,G DW   %HFDXVH WKH                2QFURVVPRWLRQVIRUVXPPDU\MXGJPHQWWKHGLVWULFWFRXUW
:LOGHUQHVV $VVRFLDWLRQ VXEPLWWHG D EULHI LQ VXSSRUW RI            EHORZJUDQWHGVXPPDU\MXGJPHQWWRWKH)HGHUDO'HIHQGDQWV
VXPPDU\ MXGJPHQW MXVW RQH GD\ DIWHU WKH FRXUWRUGHUHG             LQ 6WXSDN7KUDOO ,,,  $ VHSDUDWH DSSHDO RI WKLV JUDQW RI
GHDGOLQHIRUWKHILOLQJRIGLVSRVLWLYHPRWLRQVLWLVGLIILFXOWWR       VXPPDU\ MXGJPHQW LV FXUUHQWO\ SHQGLQJ  $JDLQ KRZHYHU
XQGHUVWDQG KRZ SHUPLWWLQJ WKH :LOGHUQHVV $VVRFLDWLRQ WR            WKLV&RXUWLVKROGLQJWKDWDSSHDOLQDEH\DQFHVRWKDWZHPD\
VXEPLWLWVEULHIDVDSDUW\GHIHQGDQWUDWKHUWKDQDVDQDPLFXV           ILUVWLVVXHDUXOLQJLQWKHLQVWDQWFDVH7KXVWKHYDOLGLW\RIWKH
FXULDHZRXOGKDYHPDGHDQ\GLIIHUHQFHWRWKHFRXUVHRIWKH               )RUHVW 6HUYLFHjV DXWKRULW\ WR DGPLQLVWHU WKH 6\OYDQLD
SURFHHGLQJV$VLQsDQVHQLQWKHLQVWDQWFDVHWKHRULJLQDO             :LOGHUQHVV$UHDLVDOVRQRWDWLVVXHLQWKLVVSHFLILFDSSHDO
SDUWLHVZRXOGQRWKDYHEHHQSUHMXGLFHGE\WKHWLPLQJRIWKH
PRWLRQWRLQWHUYHQH7KHPDMRULW\GLVDJUHHVH[SODLQLQJWKDW              6RZKDWGRHVWKLVDSSHDOFRQFHUQ",Q6WXSDN7KUDOO,,,
mLI WKH GLVWULFW FRXUW KDG DOORZHG WKH DSSHOODQWV WR EHFRPH     EHIRUH WKH GLVWULFW FRXUW JUDQWHG VXPPDU\ MXGJPHQW WR WKH
SDUWLHV DSSHOODQWV ZRXOG FHUWDLQO\ KDYH VRXJKW WR REWDLQ         )HGHUDO'HIHQGDQWVIRXUSDUWLHVoZKRUHIHUWRWKHPVHOYHV
GLVFRYHU\ VXEPLW H[SHUW UHSRUWV DQG VR RQl  $QWH DW     FROOHFWLYHO\DVmWKH:LOGHUQHVV$VVRFLDWLRQloMRLQWO\VRXJKW
7KLV LV VSHFXODWLRQ  7KH :LOGHUQHVV $VVRFLDWLRQ KDV              WRLQWHUYHQHDVSDUWLHVGHIHQGDQW7KHGLVWULFWFRXUWGHQLHG
VWHDGIDVWO\PDLQWDLQHGDQGLWUHLWHUDWHGDWRUDODUJXPHQWWKDW         WKHLUPRWLRQ,WLVWKLVGHQLDORIWKHPRWLRQIRULQWHUYHQWLRQ
LWQHYHULQWHQGHGWRUHRSHQGLVFRYHU\LQWKHFDVHLQVWHDGLW            DORQHWKDWLVWKHVXEMHFWRIWKHLQVWDQWDSSHDO,QVXPWKHUH
VRXJKWWRLQWHUYHQHLQRUGHUWRSDUWLFLSDWHDVDSDUW\RQDSSHDO         DUH WZR VHSDUDWH DSSHDOV SHQGLQJ LQ6WXSDN7KUDOO ,,, DQG
DQGLQDQ\VHWWOHPHQWQHJRWLDWLRQVWKDWPLJKWRFFXU$OWKRXJK           RXUV KDVRQO\ WR GR ZLWK WKH SURSULHW\ RI WKH GHQLDO RI WKH
SHUPLWWLQJLQWHUYHQWLRQZRXOGKDYHDGGHGDGGLWLRQDOSDUWLHV              PRWLRQWRLQWHUYHQH:HKDYHMXULVGLFWLRQRYHUWKHSURSRVHG
DQG DWWRUQH\V WR WKH FDVH WKHUH LV VLPSO\ QR EDVLV IRU WKH   LQWHUYHQRUVDSSHOODQWVjWLPHO\DSSHDOSXUVXDQWWR86&
FRQFOXVLRQ WKDW LQWHUYHQWLRQ ZRXOG KDYH GHOD\HG WKH                
SURFHHGLQJVRUSUHMXGLFHGWKHDSSHOOHHV
                                                                         ,,7KH3URSRVHG,QWHUYHQRUV
 ,QVXPDFRQVLGHUDWLRQRIWKHILYHWLPHOLQHVVIDFWRUVOHDGV
PH WR WKH FRQFOXVLRQ WKDW WKH :LOGHUQHVV $VVRFLDWLRQjV              7KH m:LOGHUQHVV $VVRFLDWLRQl LV FRPSULVHG RI WKH
PRWLRQZDVWLPHO\IRUSXUSRVHVRILQWHUYHQWLRQRIULJKW                 IROORZLQJSURSRVHGLQWHUYHQRUVDSSHOODQWVWKH:LOGHUQHVV
                                                                         6RFLHW\WKH:LOGHUQHVV:DWFKWKH8SSHU3HQLQVXOD
   )XUWKHUPRUH,EHOLHYHWKDWWKH:LOGHUQHVV$VVRFLDWLRQKDV            (QYLURQPHQWDO&RDOLWLRQm83(&lDQG7KRPDV&KXUFK
VDWLVILHGHDFKRIWKH WKUHHDGGLWLRQDOHOHPHQWVUHTXLUHGIRU            &KXUFKLVRQHRIWKHSULYDWHODQGRZQHUVRQ&URRNHG/DNH
LQWHUYHQWLRQ RI ULJKW SXUVXDQW WR 5XOH D  D VXEVWDQWLDO    +LVYLHZVUHJDUGLQJWKHDSSURSULDWHOHYHORIKXPDQSUHVHQFH
OHJDOLQWHUHVWLQWKHFDVHLPSDLUPHQWRIWKHDELOLW\WRSURWHFW         RQWKHODNHDUHLQVWURQJRSSRVLWLRQWRWKRVHRI6WXSDN7KUDOO
WKDWLQWHUHVWLQWKHDEVHQFHRILQWHUYHQWLRQDQGLQDGHTXDWH             DQG WKH RWKHU SODLQWLIIVDSSHOOHHV o KH EHOLHYHV WKH )RUHVW
UHSUHVHQWDWLRQRIWKDWLQWHUHVWE\WKHSDUWLHVEHIRUHWKHFRXUW         6HUYLFHjVUHJXODWLRQVLQFOXGLQJ$PHQGPHQWV2QHDQG)LYH
6HH *UXWWHU Y %ROOLQJHU  )G   WK &LU        GR QRW JR IDU HQRXJK  ,QGHHG &KXUFK KDV DUJXHG WR WKH
,WLVEH\RQGGRXEWWKDWWKH:LOGHUQHVV$VVRFLDWLRQjV             )RUHVW 6HUYLFH DSSDUHQWO\ ZLWKRXW VXFFHVV VR IDU WKDW LW
LQWHUHVWVLQSUHVHUYLQJDQGSURWHFWLQJWKH6\OYDQLD:LOGHUQHVV           VKRXOGDOVRSURKLELWGRJV$79VDQGVQRZPRELOHVIURP
DQGLWVSDUWLFLSDWLRQLQWKHSURFHVVOHDGLQJWRWKHGHVLJQDWLRQ          WKH6\OYDQLD:LOGHUQHVVDUHDDQG&URRNHG/DNHVWULFWO\
RI WKH 6\OYDQLD :LOGHUQHVV DUH VXIILFLHQW WR VXSSRUW              OLPLW WKH QXPEHU RI SHRSOH DOORZHG LQWR WKH 6\OYDQLD
LQWHUYHQWLRQRIULJKWDQGWKDWWKHVHLQWHUHVWVZLOOEHLPSDLUHG         :LOGHUQHVV$UHDDQGFORVHFHUWDLQDFFHVVURDGV)XUWKHU
LIWKHDSSHOOHHVSUHYDLOLQWKHLQVWDQWDFWLRQ7KHVLJQLILFDQW         ZKLOH&KXUFKDJUHHVZLWKWKH)RUHVW6HUYLFHWKDWJDVROLQH
       6WXSDN7KUDOOHWDOY*OLFNPDQHWDO       1R        1R          6WXSDN7KUDOOHWDOY*OLFNPDQHWDO           

SRZHUHGPRWRUERDWVVKRXOGEHEDQQHGIURP&URRNHG/DNH                      SULPDULO\IRUWKHSXUSRVHVRIHQVXULQJWKDWLWVLQWHUHVWVZRXOG
FRPSOHWHO\ WKH UHFRUG VXJJHVWV KH EHOLHYHV HOHFWULF                 EHUHSUHVHQWHGLQWKHHYHQWRIDQRXWRIFRXUWVHWWOHPHQWDV
PRWRUERDWVDOVRVKRXOGEHEDQQHG7KXV WRDWOHDVWVRPH                 ZHOODVHQVXULQJWKDWLWVLQWHUHVWVZRXOGEHSURWHFWHGLQDQ\
H[WHQW &KXUFK DQG WKH )HGHUDO 'HIHQGDQWV KDYH GLIIHUHQW            DGGLWLRQDO OLWLJDWLRQ LQFOXGLQJ DSSHOODWH SURFHHGLQJV
YLHZVUHJDUGLQJUHJXODWLRQRIWKH6\OYDQLD:LOGHUQHVV$UHD                &RQVLGHULQJDOOWKHFLUFXPVWDQFHVDQGWKHSXUSRVHVIRUZKLFK
                                                                           WKH:LOGHUQHVV$VVRFLDWLRQVRXJKWWRLQWHUYHQH,EHOLHYHWKDW
   7KHRWKHUDSSHOODQWVDUHHQYLURQPHQWDOJURXSVZKLFKWR                 WKH:LOGHUQHVV$VVRFLDWLRQGLGQRWXQGXO\GHOD\LQILOLQJLWV
JHQHUDOL]HWHQGWRDJUHHZLWK&KXUFKoWKH\WKLQNWKH)RUHVW              PRWLRQWRLQWHUYHQH
6HUYLFH RIWHQ GRHV QRW JR IDU HQRXJK LQ SURWHFWLQJ WKH
mXQEOHPLVKHG ZLOGQHVVl RI DOO IHGHUDO :LOGHUQHVV $UHDV                 0RVWLPSRUWDQWO\SHUPLWWLQJWKH:LOGHUQHVV$VVRFLDWLRQWR
HLWKHU EHFDXVH LWV UHJXODWLRQV DUH WRR ZHDN RU DUH QRW            LQWHUYHQHDWWKDWWLPHZRXOGQRWKDYHFDXVHGDQ\SUHMXGLFHWR
HQIRUFHG/LNH&KXUFKWKHVHRWKHUDSSHOODQWVFOHDUO\KDYH                WKH RULJLQDO SDUWLHV  7KH :LOGHUQHVV $VVRFLDWLRQ ILOHG D
YLHZV QRW HQWLUHO\ FRWHUPLQRXV ZLWK WKRVH RI WKH )HGHUDO           SURSRVHGDQVZHUWRWKHSODLQWLIIVjFRPSODLQWDORQJZLWKLWV
'HIHQGDQWV UHJDUGLQJ WKH VSHFLILF GHWDLOV RI WKH )RUHVW             PRWLRQWRLQWHUYHQHEHIRUHWKHIHGHUDOGHIHQGDQWVKDGHYHQ
6HUYLFHjV  UHJXODWLRQV JRYHUQLQJ WKH 6\OYDQLD :LOGHUQHVV              PDGHDILOLQJDQGLWILOHGDQDPLFXVFXULDHEULHILQVXSSRUWRI
$UHD7KH)HGHUDO'HIHQGDQWVDQGWKHDSSHOODQWVDJUHHIXOO\             WKH IHGHUDO GHIHQGDQWVj PRWLRQ IRU VXPPDU\ MXGJPHQW MXVW
KRZHYHUWKDWWKH SODLQWLIIVjXOWLPDWHJRDOLQWKLVFDVHoWR             RQHGD\DIWHUWKHGHIHQGDQWVILOHGWKHLUPRWLRQ7KHLQVWDQW
QXOOLI\ WKH VWDWXV RI &URRNHG /DNH DV SDUW RI WKH 6\OYDQLD       VLWXDWLRQLVVLPLODUWRWKHRQHSUHVHQWHGLQsDQVHQY&LW\RI
:LOGHUQHVVoVKRXOGQRWSUHYDLO                                           &LQFLQQDWL)GWK&LULQZKLFKZHKHOGD
                                                                           PRWLRQWRLQWHUYHQHWLPHO\EDVHGLQSDUWRQWKHIDFWWKDWmOHVV
                                                                           WKDQ WZR ZHHNV DIWHU PRYLQJ WR LQWHUYHQH>@ WKH SURSRVHG
                                                                           LQWHUYHQRUV PRYHG WR ILOH D PHPRUDQGXP LQ RSSRVLWLRQ WR
                                                                           VXPPDU\MXGJPHQWDQGWHQGHUHGWKHPHPRUDQGXPZLWKWKH
                                                                           PRWLRQl ZKLFK HQDEOHG WKH GLVWULFW FRXUW mWR FRQVLGHU
                                                                           SURSRVHGLQWHUYHQRUVjLQWHUHVWZLWKRXWGHOD\LQJDUXOLQJRQWKH

                                                                               
                                                                                 7KH PDMRULW\ H[SODLQV WKDW WKH SXUSRVHV IRU ZKLFK WKH :LOGHUQHVV
                                                                           $VVRFLDWLRQ VRXJKW WR LQWHUYHQH mSURYLGH DW PRVW RQO\ OXNHZDUP VXSSRUW
                                                                           IRU WKHLU PRWLRQl   390 DW    7KH PDMRULW\ UHVWV WKLV FRQFOXVLRQ RQ WKH
                                                                           IDFW WKDW WKH YLHZV RI WKH :LOGHUQHVV $VVRFLDWLRQ DUH ODUJHO\ LQ DFFRUG
                                                                           ZLWK WKRVH RI WKH IHGHUDO GHIHQGDQWV RQ WKH FHQWUDO VXEVWDQWLYH TXHVWLRQ
                                                                           SUHVHQWHG LQ WKH FDVH     7KH PDMRULW\ UHMHFWV DV WRR VSHFXODWLYH WKH

                                                                          :LOGHUQHVV $VVRFLDWLRQjV DUJXPHQW WKDW LWV LQWHUHVWV ZRXOG QRW DGHTXDWHO\
      )RU H[DPSOH :LOGHUQHVV :DWFK VXFFHVVIXOO\ VXHG WKH )RUHVW           EH SURWHFWHG LQ WKH HYHQW RI D VHWWOHPHQW RU LQ WKH HYHQW WKDW WKH IHGHUDO
6HUYLFH WR HOLPLQDWH XVH RI PRWRUL]HG PHDQV RI WUDQVSRUWLQJ ERDWV DFURVV   GHIHQGDQWV ZHUH WR DEDQGRQ WKH OLWLJDWLRQ      , EHOLHYH WKDW WKH PDMRULW\jV
SRUWDJHV LQ WKH %RXQGDU\ :DWHUV &DQRH $UHD :LOGHUQHVV LQ 0LQQHVRWD        GLVFXVVLRQ RI DGHTXDF\ RI UHSUHVHQWDWLRQ LV LQDSSURSULDWH LQ WKH WLPHOLQHVV
)ULHQGV RI WKH %RXQGDU\ :DWHUV :LOGHUQHVV Y 5REHUWVRQ  )G       DQDO\VLV WKH SRLQW RI ORRNLQJ WR WKH SXUSRVHV RI LQWHUYHQWLRQ DV D IDFWRU
WK &LU  FHUW GHQLHG  86   $V DQRWKHU H[DPSOH    LQ WKH WLPHOLQHVV DQDO\VLV LV WR GHWHUPLQH ZKHWKHU WKH SURSRVHG LQWHUYHQRUV
WKH :LOGHUQHVV 6RFLHW\ RI ZKLFK &KXUFK LV D PHPEHU VXEPLWWHG GHWDLOHG    DFWHG SURPSWO\ LQ OLJKW RI WKH SXUSRVHV IRU ZKLFK LQWHUYHQWLRQ ZDV VRXJKW
FRPPHQWV WR WKH )RUHVW 6HUYLFHjV SURSRVHG UHJXODWLRQV DQG GUDIW            ,Q DQ\ HYHQW DV , ZLOO H[SODLQ EHORZ , GR QRW EHOLHYH WKDW WKH LQWHUHVWV RI
PDQDJHPHQW SODQ UHJDUGLQJ WKH 6\OYDQLD :LOGHUQHVV $UHD 7KH )HGHUDO        WKH :LOGHUQHVV $VVRFLDWLRQ DUH DGHTXDWHO\ UHSUHVHQWHG E\ WKH IHGHUDO
'HIHQGDQWV KRZHYHU GLG QRW RSSRVH WKH DSSHOODQWVj PRWLRQ WR LQWHUYHQH   GHIHQGDQWV
    6WXSDN7KUDOOHWDOY*OLFNPDQHWDO          1R        1R        6WXSDN7KUDOOHWDOY*OLFNPDQHWDO               

DGGUHVVHGWKLVHOHPHQWLQWKHLUEULHIVWKH\GLGQRWGRVRRQ               ,,,7KH/HJDO6WDQGDUGIRU,QWHUYHQWLRQ
WKH DVVXPSWLRQ WKDW WKH GLVWULFW FRXUW IRXQG WKH PRWLRQ WR
LQWHUYHQH XQWLPHO\  ,Q IDFW WKH :LOGHUQHVV $VVRFLDWLRQ               :LWKWKHLUPRWLRQWKHDSSHOODQWVVRXJKWWRLQWHUYHQHERWK
DUJXHGWKDWWKHGLVWULFWFRXUWLPSOLHGO\IRXQGLWVPRWLRQWR                DVRIULJKWDQGSHUPLVVLYHO\LQYRNLQJ)HG5&LY3D	
LQWHUYHQH WLPHO\  6HFRQG , IDLO WR VHH KRZ WKH SDUWLHVj         E5HJDUGLQJLQWHUYHQWLRQRIULJKWZHKDYHLQWHUSUHWHG5XOH
GLVFXVVLRQ RI WKLV HOHPHQW LQ DGGLWLRQ WR WKH WKUHH RWKHU         DDVHVWDEOLVKLQJIRXUHOHPHQWVHDFKRIZKLFKPXVWEH
HOHPHQWV SURYLGHV DQ\ HYLGHQFH RI ZKDW WKH GLVWULFW FRXUW          VDWLVILHGEHIRUHLQWHUYHQWLRQDVRIULJKWZLOOEHJUDQWHGm
LPSOLFLWO\KHOG                                                            WLPHOLQHVVRIWKHDSSOLFDWLRQWRLQWHUYHQHWKHDSSOLFDQWjV
                                                                            VXEVWDQWLDOOHJDOLQWHUHVWLQWKHFDVHLPSDLUPHQWRIWKH
  ,QWKHDEVHQFHRIVSHFLILFGLVWULFWFRXUWILQGLQJVUHJDUGLQJ              DSSOLFDQWjVDELOLW\WRSURWHFWWKDWLQWHUHVWLQ WKHDEVHQFHRI
WLPHOLQHVV WKLV FRXUW KDV SUHYLRXVO\ DVVXPHG WKDW WKH               LQWHUYHQWLRQDQGLQDGHTXDWHUHSUHVHQWDWLRQRIWKDWLQWHUHVW
SURSRVHG LQWHUYHQRUV VDWLVILHG WKH WLPHOLQHVV UHTXLUHPHQW             E\ SDUWLHV DOUHDG\ EHIRUH WKH FRXUWl  0LFKLJDQ 6WDWH
6HH %UDGOH\ Y 0LOOLNHQ  )G   WK &LU          $)/&,2Y0LOOHU)GWK&LUVHH
m7KHGLVWULFWFRXUWGLGQRWUHO\RQXQWLPHOLQHVVWRGHQ\             *UXWWHUY%ROOLQJHU)GWK&LU
WKHSURSRVHGLQWHUYHQRUVjPRWLRQDQGZHEHOLHYHLWZRXOGEH                VDPHm)DLOXUHWRPHHW>DQ\@RQHRIWKH>IRXU@FULWHULDZLOO
LPSURSHUWRPDNHILQGLQJVRQDOOWKHUHOHYDQWFULWHULDZLWKRXW
WKHEHQHILWRIWKHGLVWULFWFRXUWjVLQVLJKWV7KHUHIRUHIRUWKH
UHPDLQGHURIRXUDQDO\VLVZHZLOODVVXPHWKDWWKHWKUHVKROG                    
UHTXLUHPHQWRIWLPHOLQHVVKDVEHHQPHWl6XFKDQDSSURDFK                      7KHVH UXOHV VWDWH

ZRXOGKDYHEHHQDSSURSULDWHLQWKLVFDVH$WWKHYHU\OHDVW                   D ,QWHUYHQWLRQ RI 5LJKW 8SRQ WLPHO\ DSSOLFDWLRQ DQ\RQH

WKH PDMRULW\ VKRXOG KDYH UHYLHZHG WKLV HOHPHQW GH QRYR                 VKDOO EH SHUPLWWHG WR LQWHUYHQH LQ DQ DFWLRQ
                                                                                         ZKHQ D VWDWXWH RI WKH 8QLWHG 6WDWHV FRQIHUV DQ
UDWKHUWKDQIRUDEXVHRIGLVFUHWLRQ                                            XQFRQGLWLRQDO ULJKW WR LQWHUYHQH RU
                                                                                      ZKHQ WKH DSSOLFDQW FODLPV DQ LQWHUHVW UHODWLQJ WR WKH
   0RYLQJ WR WKH PHULWV , GLVDJUHH ZLWK WKH PDMRULW\jV                 SURSHUW\ RU WUDQVDFWLRQ ZKLFK LV WKH VXEMHFW RI WKH DFWLRQ DQG WKH
DQDO\VLV RI WKH ILYH WLPHOLQHVV IDFWRUV  )LUVW DOWKRXJK WKH          DSSOLFDQW LV VR VLWXDWHG WKDW WKH GLVSRVLWLRQ RI WKH DFWLRQ PD\ DV
:LOGHUQHVV$VVRFLDWLRQjVPRWLRQWRLQWHUYHQHZDVQRWILOHG                      D SUDFWLFDO PDWWHU LPSDLU RU LPSHGH WKH DSSOLFDQWjV DELOLW\ WR

XQWLOQHDUO\VHYHQPRQWKVDIWHUWKHILOLQJRIWKHFRPSODLQW                    SURWHFW WKDW LQWHUHVW XQOHVV WKH DSSOLFDQWjV LQWHUHVW LV DGHTXDWHO\
                                                                                UHSUHVHQWHG E\ H[LVWLQJ SDUWLHV
DQG DOWKRXJK WKH :LOGHUQHVV $VVRFLDWLRQ DUJXDEO\ VKRXOG                   E 3HUPLVVLYH ,QWHUYHQWLRQ 8SRQ WLPHO\ DSSOLFDWLRQ DQ\RQH
KDYHNQRZQWKDWLWVLQWHUHVWVZHUHLPSOLFDWHGIURPWKHRXWVHW                  PD\ EH SHUPLWWHG WR LQWHUYHQH LQ DQ DFWLRQ
, GR QRW EHOLHYH WKDW mLW ZDV YHU\ ODWH LQ WKH FRXUVH RI WKH             ZKHQ D VWDWXWH RI WKH 8QLWHG 6WDWHV FRQIHUV D FRQGLWLRQDO
OLWLJDWLRQE\HYHU\PHDVXUHl$QWHDW  7KHPRWLRQWR                   ULJKW WR LQWHUYHQH RU

LQWHUYHQH ZDV ILOHG RQ 'HFHPEHU    :KLOH WKH                         ZKHQ DQ DSSOLFDQWjV FODLP RU GHIHQVH DQG WKH PDLQ
                                                                                DFWLRQ KDYH D TXHVWLRQ RI ODZ RU IDFW LQ FRPPRQ :KHQ D SDUW\
GLVFRYHU\ SHULRG ZDV DOUHDG\ FORVHG DW WKDW WLPH QR                    WR DQ DFWLRQ UHOLHV IRU JURXQG RI FODLP RU GHIHQVH XSRQ DQ\
GLVSRVLWLYH PRWLRQV KDG \HW EHHQ ILOHG DQG LQ IDFW WKDW               VWDWXWH RU H[HFXWLYH RUGHU DGPLQLVWHUHG E\ D IHGHUDO RU VWDWH
GHDGOLQH ZDV VWLOO QHDUO\ WZR PRQWKV DZD\  7KH VXLW                  JRYHUQPHQWDO RIILFHU RU DJHQF\ RU XSRQ DQ\ UHJXODWLRQ RUGHU
WKHUHIRUHKDGQRWSURJUHVVHGIDULQWHUPVRIILOLQJVRUUXOLQJV               UHTXLUHPHQW RU DJUHHPHQW LVVXHG RU PDGH SXUVXDQW WR WKH VWDWXWH
)XUWKHUPRUH WKH :LOGHUQHVV $VVRFLDWLRQ GLG QRW VHHN                      RU H[HFXWLYH RUGHU WKH RIILFHU RU DJHQF\ XSRQ WLPHO\ DSSOLFDWLRQ
                                                                                PD\ EH SHUPLWWHG WR LQWHUYHQH LQ WKH DFWLRQ ,Q H[HUFLVLQJ LWV
LQWHUYHQWLRQIRUWKHSXUSRVHRIUHRSHQLQJGLVFRYHU\ZKLFK                      GLVFUHWLRQ WKH FRXUW VKDOO FRQVLGHU ZKHWKHU WKH LQWHUYHQWLRQ ZLOO
ZRXOG XQGRXEWHGO\ KDYH FDXVHG GHOD\ LQ WKH SURFHHGLQJV                  XQGXO\ GHOD\ RU SUHMXGLFH WKH DGMXGLFDWLRQ RI WKH ULJKWV RI WKH
,QVWHDG WKH :LOGHUQHVV $VVRFLDWLRQ VRXJKW WR LQWHUYHQH                   RULJLQDO SDUWLHV
                                                                            )HG 5 &LY 3 
     6WXSDN7KUDOOHWDOY*OLFNPDQHWDO     1R       1R      6WXSDN7KUDOOHWDOY*OLFNPDQHWDO        

UHTXLUHWKDWWKHPRWLRQWRLQWHUYHQHEHGHQLHGl*UXEEVY                                 BBBBBBBBBBBBBBBBB
1RUULV  )G   WK &LU  :H UHYLHZ D
GLVWULFW FRXUWjV GHFLVLRQ UHJDUGLQJ WLPHOLQHVV WKH ILUVW                                 ',66(17
HOHPHQWIRUDEXVHRIGLVFUHWLRQWKHUHPDLQLQJWKUHHHOHPHQWV                              BBBBBBBBBBBBBBBBB
DUHUHYLHZHGGHQRYR*UXWWHU)GDW
                                                                        .$5(1 1(/621 0225( &LUFXLW sXGJH GLVVHQWLQJ
   5HJDUGLQJSHUPLVVLYHLQWHUYHQWLRQmVRORQJDVWKHPRWLRQ          7KH PDMRULW\ DIILUPV WKH GLVWULFW FRXUWjV GHQLDO RI WKH
IRULQWHUYHQWLRQLVWLPHO\DQGWKHUHLVDWOHDVWRQHFRPPRQ           DSSHOODQWVjm:LOGHUQHVV$VVRFLDWLRQjVlPRWLRQWRLQWHUYHQH
TXHVWLRQ RI ODZ RU IDFW WKH EDODQFLQJ RI XQGXH GHOD\       DVRIULJKWSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUHD
SUHMXGLFHWRWKHRULJLQDOSDUWLHVDQGDQ\RWKHUUHOHYDQWIDFWRUV     RQ WKH JURXQG WKDW WKH PRWLRQ ZDV XQWLPHO\  %HFDXVH ,
LVUHYLHZHGIRUDQDEXVHRIGLVFUHWLRQl0LOOHU)GDW         EHOLHYH WKDW FRQVLGHULQJ DOO UHOHYDQW FLUFXPVWDQFHV WKH
*LYHQWKDWRXUUHYLHZRISHUPLVVLYHLQWHUYHQWLRQLVIRU        :LOGHUQHVV$VVRFLDWLRQjVPRWLRQZDVWLPHO\DQGEHFDXVHWKH
DEXVHRIGLVFUHWLRQZKLOHRXUUHYLHZRILQWHUYHQWLRQDVRI           :LOGHUQHVV $VVRFLDWLRQ KDV VDWLVILHG WKH WKUHH RWKHU
ULJKWH[FHSWDVWRWKHWLPHOLQHVVHOHPHQWLVGHQRYRZHPD\        UHTXLUHPHQWVIRULQWHUYHQWLRQRIULJKW,UHVSHFWIXOO\GLVVHQW
FRQFOXGHWKDWDGHQLDORILQWHUYHQWLRQDVRIULJKWZDVHUURU         IURPWKHPDMRULW\jVRSLQLRQ
EXWDGHQLDORISHUPLVVLYHLQWHUYHQWLRQZDVQRW*UXWWHU
)GDW                                                             ,PXVWILUVWUHJLVWHUP\GLVDJUHHPHQWZLWKWKHPDMRULW\jV
                                                                      GHFLVLRQWRDIILUPWKHGLVWULFWFRXUWRQWLPHOLQHVVJURXQGV$V
   5XOHVKRXOGEHmEURDGO\FRQVWUXHGLQIDYRURISRWHQWLDO         ERWKWKHPDMRULW\DQGWKHSODLQWLIIVDSSHOOHHVUHFRJQL]HWKH
LQWHUYHQRUVl3XUQHOOY$NURQ)GWK&LU          GLVWULFWFRXUWPDGHQRH[SOLFLWFRQFOXVLRQZLWKUHJDUGWRWKH
  ,QGHHG LQ GLVFXVVLQJ WKH IRXUWK HOHPHQW RI           WLPHOLQHVV RI WKH :LOGHUQHVV $VVRFLDWLRQjV PRWLRQ WR
LQWHUYHQWLRQDVRIULJKWZHKDYHUHFHQWO\JRQHVRIDUDVWRVD\      LQWHUYHQH6HHDQWHDW%URI$SSHOOHHVDWm7KHGLVWULFW
WKDW mSURSRVHG LQWHUYHQRUV QHHG RQO\ VKRZ WKDW WKHUH LV D    FRXUWPDGHQRVSHFLILFILQGLQJVDVWRWKHWLPHOLQHVVRIWKH
SRWHQWLDOIRULQDGHTXDWHUHSUHVHQWDWLRQl*UXWWHU)GDW       :LOGHUQHVV $VVRFLDWLRQjV 0RWLRQ WR ,QWHUYHQHl
HPSKDVLVLQRULJLQDO%XWWKLVGRHVQRWPHDQWKDW5XOH         1HYHUWKHOHVVWKHPDMRULW\H[SODLQVWKDWWKHRSLQLRQUHIOHFWV
SRVHVQREDUULHUWRLQWHUYHQWLRQDWDOO:HKDYHDIILUPHG         DQmLPSOLFLW>@FRQFOX>VLRQ@lWKDWWKHPRWLRQZDVQRWWLPHO\
WKH GHQLDO RI PRWLRQV WR LQWHUYHQH SHUPLVVLYHO\ DQG DV RI    ILOHGDQGLWUHDVRQVWKDWWKHGLVWULFWFRXUWGHQLHGWKHPRWLRQ
ULJKWIRUYDULRXVUHDVRQV(JsRUGDQY0LFKLJDQ&RQIRI        DW OHDVW LQ SDUW EDVHG RQ WLPHOLQHVV JURXQGV  $QWH DW 
7HDPVWHUV:HOIDUH)XQG)GWK&LU             8QOLNHWKHPDMRULW\,ILQGQRVXFKLPSOLFLWFRQFOXVLRQLQWKH
DIILUPLQJGHQLDORIDPRWLRQWRLQWHUYHQHDVRIULJKWEHFDXVH       GLVWULFW FRXUWjV RSLQLRQ WR WKH FRQWUDU\ , EHOLHYH WKDW WKH
WKH PRWLRQ ZDV XQWLPHO\ DQG WKH SURSRVHG LQWHUYHQRUjV          GLVWULFWFRXUWFRXOGQRWKDYHEHHQPRUHFOHDUWKDWLWVGHFLVLRQ
LQWHUHVWVZHUHDGHTXDWHO\UHSUHVHQWHG%UDGOH\Y0LOOLNHQ          UHVWHGHQWLUHO\RQDGHTXDF\RIUHSUHVHQWDWLRQ,QVXPPDUL]LQJ
 )G   WK &LU  DIILUPLQJ GHQLDO RI     LWV DQDO\VLV WKH GLVWULFW FRXUW ZURWH  m7KH :LOGHUQHVV
PRWLRQV WR LQWHUYHQH SHUPLVVLYHO\ DQG DV RI ULJKW LQ SDUW   $VVRFLDWLRQ KDV QRW PHW LWV EXUGHQ RI VKRZLQJ WKDW WKH
EHFDXVHmWKHGLVWULFWFRXUWKDVDOUHDG\WDNHQVWHSVWRSURWHFW        JRYHUQPHQW GHIHQGDQWV ZLOO QRW DGHTXDWHO\ SURWHFW WKHLU
WKHSURSRVHGLQWHUYHQRUVjLQWHUHVWVE\LQYLWLQJ>WKHLUFRXQVHO@       LQWHUHVWV$FFRUGLQJO\LWLVQRWHQWLWOHGWRLQWHUYHQWLRQDVRI
WRDSSHDUDVDPLFXVFXULDHLQWKHFDVHl                             ULJKW XQGHU 5XOH Dl  s$ DW  ' &W 2S  7KH
                                                                      PDMRULW\jV UHOLDQFH RQ WKH IDFW WKDW WKH SDUWLHV GLVFXVVHG
                                                                      WLPHOLQHVV LQ WKHLU DSSHOODWH EULHIV DV VXSSRUW IRU LWV
                                                                      FRQFOXVLRQ WKDW WKH GLVWULFW FRXUW PDGH D ILQGLQJ RI
                                                                      XQWLPHOLQHVV LV XQIRXQGHG  )LUVW DOWKRXJK WKH SDUWLHV
   6WXSDN7KUDOOHWDOY*OLFNPDQHWDO   1R     1R        6WXSDN7KUDOOHWDOY*OLFNPDQHWDO             

WRLQWHUYHQH$FFRUGLQJO\WKHGLVWULFWFRXUWjVRUGHUGHQ\LQJ   ,97KHm7LPHOLQHVVl(OHPHQW
LQWHUYHQWLRQLV$)),50('
                                                                     *LYHQWKHEDVLVIRURXUUXOLQJLWEHDUVUHSHDWLQJWKDW
                                                                 m>Z@KHWKHULQWHUYHQWLRQEHFODLPHGRIULJKWRUDVSHUPLVVLYH
                                                                 LW LV DW RQFH DSSDUHQW IURP WKH LQLWLDO ZRUGV RI ERWK 5XOH
                                                                 DDQG5XOHEWKDWWKHDSSOLFDWLRQPXVWEHµWLPHO\jl
                                                                 1$$&3Y1HZ<RUN86DQGZH
                                                                 UHYLHZ WKH GLVWULFW FRXUWjV FRQFOXVLRQ DERXW WKH WLPHOLQHVV
                                                                 HOHPHQW XQGHU ERWK W\SHV RI LQWHUYHQWLRQ IRU DEXVH RI
                                                                 GLVFUHWLRQ9HOVLFRO&KHPLFDO&RUSY(QHQFR,QF)G
                                                                 WK&LU
                                                                   ,QGHQ\LQJWKHDSSHOODQWVjPRWLRQWRLQWHUYHQHWKHGLVWULFW
                                                                 FRXUW H[DPLQHG RQO\ WKH ILUVW DQG IRXUWK HOHPHQWV RI 5XOH
                                                                 D  5HJDUGLQJ WKH ILUVW HOHPHQW o WLPHOLQHVV RI WKH
                                                                 DSSOLFDWLRQWRLQWHUYHQHoWKHGLVWULFWFRXUWREVHUYHGm7KLV
                                                                 DFWLRQZDVILOHGRQ0D\7KHPRWLRQWRLQWHUYHQH
                                                                 ZDV QRW ILOHG XQWLO 'HFHPEHU  l  :LWKRXW VD\LQJ
                                                                 PRUH WKH GLVWULFW FRXUW LPSOLFLWO\ FRQFOXGHG WKDW WKH
                                                                 DSSHOODQWVj PRWLRQ WR LQWHUYHQH ZDV QRW WLPHO\ ILOHG  7KH
                                                                 SDUWLHV KDYH DUJXHG DW OHQJWK RQ DSSHDO ZKHWKHU WKLV
                                                                 FRQFOXVLRQZDVDQDEXVHRIWKHGLVWULFWFRXUWjVGLVFUHWLRQ
                                                                 :HFRQFOXGHLWZDVQRW


                                                                     
                                                                       7KH GLVWULFW FRXUW IRFXVHG LQ GHSWK RQ WKH IRXUWK HOHPHQW DGGUHVVLQJ
                                                                 WKH ILUVW HOHPHQW OHVV FORVHO\ 7KDW WKH SDUWLHV IRFXVHG WKHLU DSSHOODWH
                                                                 DUJXPHQWV RQ WKH WLPHOLQHVV HOHPHQW JLYHV VXSSRUW WR WKH FRQFOXVLRQ WKDW
                                                                 WKH GLVWULFW FRXUW GLG LQ IDFW GHQ\ WKH PRWLRQ IRU LQWHUYHQWLRQ EDVHG LQ
                                                                 SDUW RQ WKH ILUVW HOHPHQW WLPHOLQHVV DQG QRW H[FOXVLYHO\ RQ WKH IRXUWK
                                                                 HOHPHQW DGHTXDF\ RI UHSUHVHQWDWLRQ ,QGHHG WKH SDUWLHV GLG 349 DUJXH
                                                                 RQ DSSHDO WKDW ZH VKRXOG UHPDQG WKLV FDVH WR WKH GLVWULFW FRXUW IRU DQ
                                                                 H[SOLFLW UHFLWDWLRQ RI ZKHWKHU DQG ZK\ WKH PRWLRQ WR LQWHUYHQH ZDV
                                                                 XQWLPHO\ o WKDW LV IRU D IXOOHU H[SODQDWLRQ RI KRZ WKH GLVWULFW FRXUW
                                                                 H[HUFLVHG LWV GLVFUHWLRQ o DSSDUHQWO\ EHOLHYLQJ WKH GLVWULFW FRXUWjV WZR
                                                                 VHQWHQFH H[SODQDWLRQ RI XQWLPHOLQHVV LV VXIILFLHQW 7KH DSSHOODQWVj RQO\
                                                                 UHPDQG DUJXPHQW ZDV WKDW WKH GLVWULFW FRXUW GLG QRW SURYLGH D UDWLRQDOH IRU
                                                                 LWV GHFLVLRQ WR GHQ\ SHUPLVVLYH LQWHUYHQWLRQ $SSHOODQWVj EULHI DW  
                                                                  ,Q DQ\ HYHQW HYHQ LI ZH ZHUH WR FRQFOXGH WKDW WKH GLVWULFW FRXUW PDGH
                                                                 34 ILQGLQJ UHJDUGLQJ WLPHOLQHVV UHPDQG ZRXOG VWLOO EH LQDSSURSULDWH
                                                                 UDWKHU RXU OHYHO RI UHYLHZ ZRXOG WKHQ FKDQJH IURP DEXVH RI GLVFUHWLRQ WR
                                                                 GH QRYR 6LHUUD &OXE Y (VS\  )G   Q WK &LU 
    6WXSDN7KUDOOHWDOY*OLFNPDQHWDO       1R     1R         6WXSDN7KUDOOHWDOY*OLFNPDQHWDO               

   7KH GHWHUPLQDWLRQ RI ZKHWKHU D PRWLRQ WR LQWHUYHQH LV         2QDSSHDOWKHDSSHOODQWVDUJXHVWURQJO\WKDWZHVKRXOGQRW
WLPHO\ mVKRXOG EH HYDOXDWHG LQ WKH FRQWH[W RI DOO UHOHYDQW   DGRSW WKH SDUHQV SDWULDH GRFWULQH DQG WKH SODLQWLIIV DUJXH
FLUFXPVWDQFHVlsDQVHQY&LW\RI&LQFLQQDWL)G          HTXDOO\VWURQJO\WKDWZHVKRXOG5HFHQWO\ZHDQQRXQFHGWKDW
WK&LU:HKDYHKHOGWKDWWKHIROORZLQJIDFWRUV         WKLV GRFWULQH JHQHUDOO\ KDV QR KROG LQ WKLV &LUFXLW  6HH
VKRXOGEHFRQVLGHUHGLQGHWHUPLQLQJWLPHOLQHVV                      *UXWWHU)GDWUHMHFWLQJWKHJHQHUDOSURSRVLWLRQ
                                                                      WKDWmDVWURQJHUVKRZLQJRILQDGHTXDF\LVUHTXLUHGZKHQD
   WKH SRLQW WR ZKLFK WKH VXLW KDV SURJUHVVHG  WKH   JRYHUQPHQWDODJHQF\LVLQYROYHGDVWKHH[LVWLQJGHIHQGDQWl
  SXUSRVHIRUZKLFKLQWHUYHQWLRQLVVRXJKWWKHOHQJWK            DQGQRWLQJWKDWmWKLVFLUFXLWKDVGHFOLQHGWRHQGRUVHDKLJKHU
  RI WLPH SUHFHGLQJ WKH DSSOLFDWLRQ GXULQJ ZKLFK WKH           VWDQGDUG IRU LQDGHTXDF\ ZKHQ D JRYHUQPHQWDO HQWLW\ LV
  SURSRVHG LQWHUYHQRUV NQHZ RU VKRXOG KDYH NQRZQ RI            LQYROYHGl%HFDXVHZHLVVXHGRXURSLQLRQLQ*UXWWHUDIWHU
  WKHLULQWHUHVWLQWKHFDVHWKHSUHMXGLFHWRWKHRULJLQDO       WKHGLVWULFWFRXUWHQWHUHGILQDOMXGJPHQWEHORZWKHGLVWULFW
  SDUWLHV GXH WR WKH SURSRVHG LQWHUYHQRUVj IDLOXUH WR          FRXUWGLGQRWKDYHWKHEHQHILWRIRXUUHDVRQLQJ1RQHWKHOHVV
  SURPSWO\LQWHUYHQHDIWHUWKH\NQHZRUUHDVRQDEO\VKRXOG             ZHFRQILUPWKHDSSHOODQWVjSRVLWLRQRQWKLVSRLQWWKHGLVWULFW
  KDYH NQRZQ RI WKHLU LQWHUHVW LQ WKH FDVH DQG  WKH     FRXUWjV DQDO\VLV ZDV LQFRUUHFW WR WKH H[WHQW LW DVVHVVHG WKH
  H[LVWHQFHRIXQXVXDOFLUFXPVWDQFHVPLOLWDWLQJDJDLQVWRU            DGHTXDF\ RI UHSUHVHQWDWLRQ RI WKH SURSRVHG LQWHUYHQRUVj
  LQIDYRURILQWHUYHQWLRQ                                          LQWHUHVWVE\SDUWLHVDOUHDG\EHIRUHWKHFRXUWXQGHUWKHSDUHQV
                                                                      SDWULDHGRFWULQH
,G
                                                                      9,&RQFOXVLRQ
   &ULWLFDOWRRXUDQDO\VLVLVWKHWLPLQJRIFHUWDLQHYHQWVGXULQJ
OLWLJDWLRQRI6WXSDN7KUDOO,,,EHIRUHWKHGLVWULFWFRXUW7KH         )RUWKHUHDVRQVVWDWHGDERYHZHFRQFOXGHWKHGLVWULFWFRXUW
FDVHGRFNHWUHYHDOVWKHIROORZLQJSURFHGXUDOKLVWRU\                 SURSHUO\GHQLHGWKHSURSRVHGLQWHUYHQRUVDSSHOODQWVjPRWLRQ
0D\       WKHSODLQWLIIVILOHWKHLUFRPSODLQW
sXQH       WKHSODLQWLIIVILOHDPRWLRQIRUSUHOLPLQDU\           
                    LQMXQFWLRQ                                              :H QRWH WKDW WKLV IRXUWK HOHPHQW RI WKH DQDO\VLV RI LQWHUYHQWLRQ DV
                                                                      RI ULJKW o DGHTXDF\ RI UHSUHVHQWDWLRQ o RYHUODSV WR VRPH GHJUHH ZLWK WKH
sXQH      WKH GLVWULFW FRXUW HQWHUV DQm2UGHUWR        mSXUSRVHV RI LQWHUYHQWLRQl SURQJ RI WKH ILUVW HOHPHQW o WLPHOLQHVV 7KHVH
                                                                      DVSHFWV RI WKH LQWHUYHQWLRQ DQDO\VLV KRZHYHU KDYH D GLIIHUHQW IRFXV 7KH
                    $QVZHUlGLUHFWLQJWKHGHIHQGDQWVWRILOHD       mSXUSRVHV RI LQWHUYHQWLRQl SURQJ RI WKH WLPHOLQHVV HOHPHQW QRUPDOO\
                    UHVSRQVH WR WKH PRWLRQ IRU SUHOLPLQDU\       H[DPLQHV RQO\ ZKHWKHU WKH ODFN RI DQ HDUOLHU PRWLRQ WR LQWHUYHQH VKRXOG
                    LQMXQFWLRQ                                       EH H[FXVHG JLYHQ WKH SURSRVHG LQWHUYHQRUjV SXUSRVH o IRU H[DPSOH ZKHQ
                                                                      WKH SURSRVHG LQWHUYHQRU VHHNV WR LQWHUYHQH ODWH LQ WKH OLWLJDWLRQ WR HQVXUH
sXQH      WKH SDUWLHV ILOH DVWLSXODWLRQWHPSRUDULO\     DQ DSSHDO 6HH 7ULD[ &R Y 75: ,QF  )G   WK &LU
                    PRRWLQJ WKH PRWLRQ IRU SUHOLPLQDU\             SURSRVHG LQWHUYHQRUjV SRVWMXGJPHQW PRWLRQ WR LQWHUYHQH DV RI
                                                                      ULJKW KHOG WLPHO\ EHFDXVH KLV SXUSRVH ZDV WR SURVHFXWH DQ DSSHDO WKDW
                    LQMXQFWLRQ                                       ZRXOG QRW RWKHUZLVH KDYH EHHQ ILOHG VHH DOVR 8QLWHG $LUOLQHV ,QF Y
                                                                      0F'RQDOG  86    SURSRVHG LQWHUYHQRUjV SRVW
sXO\     WKH SDUWLHV ILOH D MRLQWPRWLRQWRVWD\       MXGJPHQW PRWLRQ WR LQWHUYHQH KHOG WLPHO\ EHFDXVH KHU SXUSRVH ZDV WR
                    SURFHHGLQJV WR IDFLOLWDWH VHWWOHPHQW          DSSHDO WKH GHQLDO RI FODVV FHUWLILFDWLRQ QRW WR OLWLJDWH KHU LQGLYLGXDO FODLP
                    QHJRWLDWLRQV                                     7KH DGHTXDF\ RI UHSUHVHQWDWLRQ HOHPHQW LV PRUH EURDG :H GR QRW UHDFK
                                                                      WKH DGHTXDF\ RI UHSUHVHQWDWLRQ LVVXH LQ WKLV FDVH ILQGLQJ LW XQQHFHVVDU\
                                                                      WR GR VR LQ OLJKW RI RXU FRQFOXVLRQ RQ WKH WLPHOLQHVV LVVXH
    6WXSDN7KUDOOHWDOY*OLFNPDQHWDO       1R       1R      6WXSDN7KUDOOHWDOY*OLFNPDQHWDO      

  )6XPPDU\                                                          sXO\     WKH SDUWLHV ILOH DVHFRQGVWLSXODWLRQ
                                                                                           WHPSRUDULO\ PRRWLQJ WKH PRWLRQ IRU
   %\YLUWXHRIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH&RQJUHVV                             SUHOLPLQDU\LQMXQFWLRQ
KDVLQVWUXFWHGFRXUWVWRH[DPLQHWKHTXHVWLRQRIWLPHOLQHVV
ZKHQJDXJLQJWKHSURSULHW\RIDPRWLRQWRLQWHUYHQHZKHWKHU            sXO\     WKHGLVWULFWFRXUWGHQLHVWKHMRLQWPRWLRQWR
SHUPLVVLYHO\RUDVRIULJKW7KH6XSUHPH&RXUWKDVH[SODLQHG                              VWD\SURFHHGLQJV
WKDW m>W@LPHOLQHVV LV WR EH GHWHUPLQHG IURP DOO WKH
FLUFXPVWDQFHV  $QG LW LV WR EH GHWHUPLQHG E\ WKH >GLVWULFW   sXO\     WKH SODLQWLIIV ILOH DQDPHQGHGFRPSODLQW
FRXUW@ LQ WKH H[HUFLVH RI LWV VRXQG GLVFUHWLRQ XQOHVV WKDW                       ZLWKOHDYHRIFRXUW
GLVFUHWLRQLVDEXVHGWKH>GLVWULFWFRXUWjV@UXOLQJZLOOQRWEH
GLVWXUEHGRQUHYLHZl1$$&3Y1HZ<RUN86DW               sXO\     WKH GLVWULFW FRXUW HQWHUVLWVFDVH
IRRWQRWHVRPLWWHG                                                                       PDQDJHPHQWRUGHUDVVLJQVWKHFDVHWRDQ
                                                                                           H[SHGLWHG WUDFN DQG VHWV WKH IROORZLQJ
  ,Q WKLV FDVH WKH ILYH IDFWRUV ZH PXVW ZHLJK WR DVVHVV                         GHDGOLQHV
WLPHOLQHVV DUH HLWKHU QHXWUDO RU SUHSRQGHUDWH DJDLQVW                                $XJ   o MRLQGHU RI SDUWLHV DQG
LQWHUYHQWLRQ*LYHQWKHWRWDOLW\RIWKHFLUFXPVWDQFHVLQWKLV                             DPHQGPHQWRISOHDGLQJV
FDVH ZH FDQQRW FRQFOXGH WKDW WKH GLVWULFW FRXUW DEXVHG LWV                       2FWoGLVFRYHU\FRPSOHWHG
GLVFUHWLRQLQGHQ\LQJWKHDSSHOODQWVjPRWLRQWRLQWHUYHQH                                2FWoSODLQWLIIVjLGHQWLILFDWLRQRI
                                                                                           DOOZLWQHVVHVLQFOXGLQJH[SHUWV
9$GHTXDF\RI5HSUHVHQWDWLRQ                                                            1RYoGHIHQGDQWVjLGHQWLILFDWLRQ
                                                                                           RIDOOZLWQHVVHVLQFOXGLQJH[SHUWV
  *LYHQ WKDW WLPHOLQHVV LV D UHTXLUHPHQW HTXDOO\ IRU                                )HEoGLVSRVLWLYHPRWLRQVGXH
LQWHUYHQWLRQ SHUPLVVLYHO\RUDVRIULJKW9HOVLFRO&KHPLFDO                                0DU   o RUDO DUJXPHQW RQ
&RUS)GDWRXUDQDO\VLVFRPHVWRDQHQG:HIHHO                               GLVSRVLWLYHPRWLRQV
FRPSHOOHGWRDGGKRZHYHUDEULHIQRWHUHJDUGLQJDQLVVXH
RYHUZKLFKWKHSDUWLHVVWURQJO\GLVDJUHHGRQDSSHDO                    'HF     WKH DSSHOODQWV ILOH WKHLUPRWLRQWR
                                                                                           LQWHUYHQH
  7KH GLVWULFW FRXUW LQ LWV RSLQLRQ GHQ\LQJ LQWHUYHQWLRQ
FRQFOXGHGWKDWWKHDSSHOODQWVGLGQRWVKRZWKHIRXUWKHOHPHQW          sDQ     WKH GLVWULFW FRXUW GHQLHV WKHPRWLRQWR
RILQWHUYHQWLRQDVRIULJKWoLQDGHTXDWHUHSUHVHQWDWLRQRIWKH                             LQWHUYHQHEXWDOORZVDSSHOODQWVWRILOHDQ
SURSRVHGLQWHUYHQRUjVLQWHUHVWVE\SDUWLHVDOUHDG\EHIRUHWKH                              DPLFXVFXULDHEULHI
FRXUW,QLWVDQDO\VLVWKHGLVWULFWFRXUWUHOLHGRQWKHSDUHQV
SDWULDHGRFWULQH7KLVGRFWULQHKROGVWKDWmZKHQRQHRIWKH            sDQ     SXUVXDQWWRWKHSDUWLHVjUHTXHVWWKHGLVWULFW
SDUWLHVLVDQDUPRUDJHQF\RIWKHJRYHUQPHQWDQGWKHFDVH                                FRXUW FODULILHV WKH GLVSRVLWLYH PRWLRQ
FRQFHUQVDPDWWHURIµVRYHUHLJQLQWHUHVWjWKH>LQWHUYHQWLRQ@                              EULHILQJGHDGOLQHRUGHULQJWKHGHIHQGDQWV
EDU LV UDLVHG EHFDXVH LQ VXFK FDVHV WKH JRYHUQPHQW LV                            WRILOHWKHLUPRWLRQRQ)HEDQGWKH
µSUHVXPHG WR UHSUHVHQW WKH LQWHUHVWV RI DOO LWV FLWL]HQVjl
0DXVROI Y %DEELWW  )G   WK &LU 
TXRWLQJ 0LOOH /DFV %DQG RI &KLSSHZD ,QGLDQV Y 6WDWH RI
0LQQ)GWK&LU
         6WXSDN7KUDOOHWDOY*OLFNPDQHWDO            1R         1R      6WXSDN7KUDOOHWDOY*OLFNPDQHWDO        

                           SODLQWLIIV  W R  IL O H W K HL U FURVV             EULHIVRQWKHLVVXHVWKHQWKHLUSDUWLFLSDWLRQDVDPLFLFXULDH
                           PRWLRQUHVSRQVHRQ)HE                        VKRXOGKDYHEHHQVXIILFLHQW
)HE              WKHGHIHQGDQWVWLPHO\ILOHWKHLUPRWLRQIRU                 ,QGHHGLIWKHGLVWULFWFRXUWKDGDOORZHGLQWHUYHQWLRQRQO\RQ
                           VXPPDU\MXGJPHQW                                        WKH FRQGLWLRQ WKDW WKH H[LVWLQJ FDVHVSHFLILF GHDGOLQHV
                                                                                    UHPDLQHGLQWDFWoWKHUHE\SURWHFWLQJWKHRULJLQDOSDUWLHVIURP
)HE              WKHDSSHOODQWVILOHDQDPLFXVFXULDHEULHI              GHOD\DQGXQGXHSUHMXGLFHDQGFRQIRUPLQJZLWK&RQJUHVVjV
                                                                                    PDQGDWHWRDGRSWDQGDGKHUHWRDGHOD\UHGXFWLRQSODQoWKH
)HE             WKHSODLQWLIIVPRYHIRUDQH[WHQVLRQRIWLPH             DSSHOODQWVVXUHO\ZRXOGEHFRPSODLQLQJQRZWKDWWKHGLVWULFW
                           WR ILOH WKHLU FURVVPRWLRQ IRU VXPPDU\              FRXUWVKRXOGKDYHDOORZHGWKHPWRFRQGXFWVRPHGLVFRYHU\
                           MXGJPHQW                                                DQGVXEPLWWKHLURZQH[SHUWUHSRUWV,WLVPRUHOLNHO\WKDW
                                                                                    DOORZLQJLQWHUYHQWLRQZRXOGKDYHVXEVWDQWLDOO\LQWHUIHUHGZLWK
0DUFK             WKH GLVWULFW FRXUW GHQLHVWKHSODLQWLIIVj             WKHRUGHUO\SURFHVVHVRIWKHGLVWULFWFRXUW
                           PRWLRQIRUH[WHQVLRQRIWLPHDQGRUGHUVWKH
                           SODLQWLIIV WR ILOH WKHLU FURVVPRWLRQ E\              7KHDSSHOODQWVDOVRLQVLVWWKDWDOORZLQJWKHPWRLQWHUYHQH
                           0DUFK                                           ZRXOG QRW FDXVH WKH SODLQWLIIV DQ\ SUHMXGLFH mXQGXHl RU
                                                                                    RWKHUZLVH%XWWKLVEDOGVWDWHPHQWGLVUHJDUGVWKHHFRQRPLF
0DUFK WKH SODLQWLIIV ILOH WKHLUFURVVPRWLRQIRU                       UHDOLWLHVRIWKLVFDVH(DFKGD\WKDWWKH)HGHUDO'HIHQGDQWVj
                VXPPDU\MXGJPHQWGD\VODWH                                     UHJXODWLRQVJRYHUQLQJ&URRNHG/DNHDUHXSKHOGWUDQVODWHVDV
                                                                                    DQRWKHU GD\ RI ORVW LQFRPH WR WKH SODLQWLIIV  6HH 6WXSDN
$SULO             WKHGLVWULFWFRXUWHQWHUVLWVRUGHUJUDQWLQJ             7KUDOO,,)6XSSDWm>S@RWHQWLDOUHQWHUVKDYHWROG
                           VXPPDU\MXGJPHQWWRWKHGHIHQGDQWV                      6WXSDN7KUDOO WKDW WKH\ ZLOO QRW UHQW >KHU &URRNHG /DNH
  7KHUHDUHDQXPEHURIQRWDEOHWKLQJVDERXWWKLVFKDLQRI                          SURSHUWLHV@LIWKH\FDQQRWXVHJDVSRZHUHGPRWRUERDWVlDQG
HYHQWV)LUVWWKH)HGHUDO'HIHQGDQWVQHYHUILOHGDQDQVZHUWR                     m>D@IWHUQHZVZDVUHFHLYHGDERXWWKHSDVVDJHRI$PHQGPHQW
WKHSODLQWLIIVjRULJLQDORUDPHQGHGFRPSODLQWV$SSDUHQWO\                        1RDQGWKHEDQRQJDVPRWRUV0U*DMHZVNLQRWLFHGDQ
WKH)HGHUDO'HIHQGDQWVRYHUORRNHGWKLVUHTXLUHPHQWKDYLQJ                         LPPHGLDWH GHFOLQH LQ UHVHUYDWLRQV >DW KLV &URRNHG /DNH
EHHQRUGHUHGE\WKHGLVWULFWFRXUWRQsXQHWR                        5HVRUW@l VR WKDW mKH IHDUV KLV EXVLQHVV ZLOO QRW VXUYLYHl
mDQVZHUlE\ILOLQJDUHVSRQVHWRWKHPRWLRQIRUSUHOLPLQDU\                         $OORZLQJLQWHUYHQWLRQZRXOGLQGHHGFDXVHGHOD\DQGXQGXH
LQMXQFWLRQ DQG  UHDFKHG D VWLSXODWLRQ WKDW PRRWHG WKH                   SUHMXGLFH WR WKH SODLQWLIIV  7KLV IDFWRU ZHLJKV DJDLQVW
SODLQWLIIVjPRWLRQIRUSUHOLPLQDU\LQMXQFWLYHUHOLHISHQGLQJ                       LQWHUYHQWLRQ
WKHGLVWULFWFRXUWjVUXOLQJRQWKHVXPPDU\MXGJPHQWPRWLRQ                           ( 8QXVXDO &LUFXPVWDQFHV 0LOLWDWLQJ $JDLQVW RU LQ
  6HFRQGWKHGLVWULFWFRXUWVHWDQH[SHGLWHGFDVHPDQDJHPHQW                            )DYRURI,QWHUYHQWLRQ
SODQDQGVWXFNWRLW:KHQWKHGLVWULFWFRXUWHQWHUHGLWVFDVH                       7KHRQO\XQXVXDOFLUFXPVWDQFHLGHQWLILHGE\WKHDSSHOODQWV
                                                                                    LVWKHGHDWKRI0U .XKOPDQQZKLFKZHGLVFXVVHGDERYH
                                                                                    7KLVIDFWRUGRHVQRWZHLJKLQIDYRURIWKHDSSHOODQWV
       
       7KLV ZDV QRW DQ H[WHQVLRQ RI WKH H[LVWLQJ GHDGOLQH LW ZDV D UXOLQJ
WKDW   WKH   SODLQWLIIV   VKRXOG   FRPELQH   WKHLU   FURVVPRWLRQ   IRU   VXPPDU\
MXGJPHQW ZLWK WKHLU UHVSRQVH EULHI UDWKHU WKDQ ILOH WKHLU FURVVPRWLRQ
VLPXOWDQHRXVO\ ZLWK WKH GHIHQGDQWVj PRWLRQ
     6WXSDN7KUDOOHWDOY*OLFNPDQHWDO          1R        1R          6WXSDN7KUDOOHWDOY*OLFNPDQHWDO                 

DSSHOODQWV ZHUH RU VKRXOG KDYH EHHQ DZDUH RI 6WXSDN                 PDQDJHPHQWRUGHULWLQIRUPHGWKHSDUWLHVWKH\KDGRQO\WZR
7KUDOO,,,VKRUWO\DIWHULWZDVILOHG8OWLPDWHO\WKHDSSHOODQWV           PRQWKV WR FRPSOHWH GLVFRYHU\ DQG VL[ PRQWKV EHIRUH
SUHVHQWQRSHUVXDVLYHH[FXVHIRUKDYLQJZDLWHGVHYHQPRQWKV                  GLVSRVLWLYHPRWLRQVZHUHGXH7KHGLVWULFWFRXUWWKHQDGKHUHG
EHIRUHPRYLQJWRLQWHUYHQH                                                WRWKHVHGHDGOLQHVHYHQGHQ\LQJWKHVROHPRWLRQIRUH[WHQVLRQ
                                                                             RIWLPH7KHGLVWULFWFRXUWJDYHWKHSDUWLHVDUHODWLYHO\OHQJWK\
   '3UHMXGLFHWRWKH2ULJLQDO3DUWLHV                                    IRXUPRQWKSHULRGEHWZHHQWKHHQGRIIDFWGLVFRYHU\DQGWKH
                                                                             GLVSRVLWLYHPRWLRQGHDGOLQHEHFDXVHWKHH[SHUWUHSRUWVDQG
  ,QWKHLUEULHILQRSSRVLWLRQWRLQWHUYHQWLRQ ILOHGZLWKWKH               OHJDOLVVXHVZHUHH[SHFWHGWREHFRPSOH[
GLVWULFWFRXUWWKHSODLQWLIIVDSSHOOHHVZURWH
                                                                               7KLUGDOWKRXJKWKHDSSHOODQWVZHUHQRWDOORZHGWREHFRPH
   $GGLQJ DGGLWLRQDO SDUWLHV WR WKLV DFWLRQ ZLOO GHOD\ WKH           SDUWLHV WKH\ ZHUH VWLOO DEOH WR PDNH NQRZQ WR WKH GLVWULFW
   SURFHHGLQJV E\ PDNLQJ WKH DFWLRQ PRUH FRPSOH[                      FRXUWWKHLUFRQFHUQVYLDILOLQJRIDEULHIDVDPLFLFXULDH,Q
   3ODLQWLIIVKDYHVHUYHGWKHLUH[SHUWUHSRUWV'LVSRVLWLYH                 WKHLU PRWLRQ WKH DSSHOODQWV DVNHG WKH GLVWULFW FRXUW IRU
   PRWLRQVDUHGXHWREHFRPSOHWHGVRRQ$WULDOGDWHKDV                   SHUPLVVLRQWRLQWHUYHQHRULQWKHDOWHUQDWLYHWRSDUWLFLSDWHDV
   EHHQVHW,WVWUDLQVFUHGXOLW\WRDVVHUWWKDWDGGLQJIRXU                DPLFL FXULDH  sRLQW $SSHQGL[ ms$l DW   7KH GLVWULFW
   DGGLWLRQDOSDUWLHVDQGILYHDWWRUQH\VWRDFDVHVRIDUDORQJ              FRXUW GHQLHG WKH PRWLRQ WR LQWHUYHQH      EXW JUDQWHG WKH
   ZLOOQRWGHOD\DQGSUHMXGLFH3ODLQWLIIV                                  DSSHOODQWVWKHLUUHTXHVWHGDOWHUQDWLYH
s$ DW   7KH DSSHOODQWV HVVHQWLDOO\ FRQFHGLQJ WKDW                :LWKLQWKLVFRQWH[WZHQRZH[DPLQHWKHILYHIDFWRUVWKDW
LQWHUYHQWLRQZLWKRXWGHOD\DQGUHVXOWLQJSUHMXGLFHZRXOGKDYH                PXVW JXLGH WKH GLVWULFW FRXUWjV GLVFUHWLRQ LQ DVVHVVLQJ WKH
EHHQ LQFUHGLEOH GLG QRW HYHQ DWWHPSW WR DVVHUW D FRXQWHU          WLPHOLQHVVRIWKHDSSHOODQWVjPRWLRQWRLQWHUYHQH
DUJXPHQWEHIRUHWKHGLVWULFWFRXUW
                                                                               $7KH3RLQWWR:KLFKWKH6XLW+DG3URJUHVVHG
   2Q DSSHDO WKH DSSHOODQWV GR DUJXH WKDW DOORZLQJ
LQWHUYHQWLRQZRXOGQRWFDUU\ZLWKLWDQ\SUHMXGLFHRUXQGXH                     ,WFDQQRWEHJDLQVDLGWKDWZKHQWKHDSSHOODQWVPRYHGWR
GHOD\  %XW DSSHOODQWVj DUJXPHQWV DUH XQSHUVXDVLYH  7KH             LQWHUYHQH RQ 'HFHPEHU   LW ZDV YHU\ ODWH LQ WKH
DSSHOODQWVILUVWLQVLVWWKDWLQWHUYHQWLRQZRXOGQRWKDYHFDXVHG              FRXUVHRIWKHOLWLJDWLRQE\HYHU\PHDVXUH7KHFDVHZKLFK
DQ\GHOD\DVVKRZQE\WKHLUKDYLQJWLPHO\ILOHGDQDPLFXV                   ZDVXOWLPDWHO\GLVSRVHGRI.PRQWKVDIWHULWZDVILOHGZDV
EULHI EHIRUH WKH GLVWULFW FRXUW  7KLV DUJXPHQW RI FRXUVH         DOUHDG\RYHUVHYHQPRQWKVROGWKHGLVFRYHU\SHULRGKDGEHHQ
LJQRUHV WKH IDFW WKDW LI WKH GLVWULFW FRXUW KDG DOORZHG WKH       FORVHG IRU RYHU WHQ ZHHNV DOO ZLWQHVVHV LQFOXGLQJ H[SHUW
DSSHOODQWVWREHFRPHSDUWLHVDSSHOODQWVZRXOGFHUWDLQO\KDYH                ZLWQHVVHV KDG EHHQ LGHQWLILHG RYHU ILYH ZHHNV HDUOLHU WKH
VRXJKWWRREWDLQGLVFRYHU\VXEPLWH[SHUWUHSRUWVDQGVRRQ                SODLQWLIIVKDGDOUHDG\SURGXFHGDQH[SHUWUHSRUWDQGVXUYH\
LIWKHDSSHOODQWVVRXJKWWRLQWHUYHQHRQO\LQRUGHUWRVXEPLW

                                                                                 
                                                                                   3URSRVHG LQWHUYHQRUDSSHOODQW 83(& KDG HDUOLHU ILOHG DQ DPLFXV
                                                                                        6WXSDN7KUDOO ,,
                                                                           EULHI LQ                        ) 6XSS DW  :LOGHUQHVV :DWFK VWDWHV
       :H GR QRW PHDQ WR GRZQSOD\ WKH ORVV WKH :LOGHUQHVV $VVRFLDWLRQ        LW DOVR mZLOO SDUWLFLSDWHl DV DPLFXV FXULDH LQ      6WXSDN7KUDOO ,,   RQ DSSHDO
VXUHO\ VXIIHUHG GXH WR 0U .XKOPDQQjV WUDJLF DQG XQWLPHO\ SDVVLQJ 7KH       s$ DW  7KH +RQRUDEOH 5REHUW +ROPHV %HOO VHUYHG DV WKH GLVWULFW FRXUW
TXDOLW\ RI KLV OHJDO ZRUN DQG WKH GHSWK RI KLV FRPPLWPHQW DV UHYHDOHG E\    MXGJH LQ ERWK   6WXSDN7KUDOO ,,    DQG   6WXSDN7KUDOO ,,,   VR KH NQHZ WKDW WKH
WKH EULHIV KH KDV VXEPLWWHG WR WKLV &RXUW UHYHDO WKDW KLV DVVRFLDWHV KDYH   SURSRVHG LQWHUYHQRUV LQ WKLV DFWLRQ ZHUH DOUHDG\ YHU\ IDPLOLDU ZLWK WKH
ELJ VKRHV WR ILOO                                                           VXEMHFW PDWWHU
       6WXSDN7KUDOOHWDOY*OLFNPDQHWDO            1R        1R     6WXSDN7KUDOOHWDOY*OLFNPDQHWDO      

DQGWKHGLVSRVLWLYHPRWLRQGHDGOLQHRULJLQDOO\VHWZHHNV                     6HUYLFHFDQQRWOHJLWLPDWHO\EHOLHYHWKH)HGHUDO'HIHQGDQWV
DIWHU WKH FORVH RI GLVFRYHU\ ZDV RQO\ VHYHQ ZHHNV DZD\                PLJKWDEDQGRQWKHOLWLJDWLRQ,QVXFKFLUFXPVWDQFHVWKHULJKW
+DYLQJDGKHUHGWRWKHH[SHGLWHGWUDFNLWRULJLQDOO\VHWWKH                     WR SDUWLFLSDWH DV DPLFL FXULDH LV ERWK PHDQLQJIXO DQG
GLVWULFWFRXUWDGPLUDEO\HQWHUHGILQDOMXGJPHQWOHVVWKDQRQH                  DGHTXDWH  ,Q VXP WKH SXUSRVHV IRU ZKLFK DSSHOODQWV VHHN
\HDUDIWHUWKHFDVHZDVILOHG                                                  LQWHUYHQWLRQSURYLGHDWPRVWRQO\OXNHZDUPVXSSRUWIRUWKHLU
                                                                                 PRWLRQ
   $SSHOODQWV DUJXH WKDW ZKHQ WKH\ ILOHG WKHLU PRWLRQ WR
LQWHUYHQHWKH)HGHUDO'HIHQGDQWVKDGQRW\HWHYHQILOHGDQ                        & 7KH'XUDWLRQWKDWWKH$SSHOODQWV.QHZRI7KHLU
DQVZHU WR WKH FRPSODLQW WKHUHIRUH WKH OLWLJDWLRQ ZDV VWLOO                  ,QWHUHVWLQWKH&DVH
LPPDWXUH  7KLV DUJXPHQW LV VSHFLRXV  $V WKH DSSHOODQWV
VXUHO\NQRZWKH)HGHUDO'HIHQGDQWVQHYHUILOHGDQDQVZHU                         7KH WKLUG IDFWRU LV WKH OHQJWK RI WLPH SUHFHGLQJ WKH
XVLQJ WKH DSSHOODQWVj ORJLF WKH\ FRXOG ILOH D PRWLRQ WR                DSSHOODQWVjPRWLRQWRLQWHUYHQHGXULQJZKLFKWKH\NQHZRU
LQWHUYHQHZLWKWKHGLVWULFWFRXUWWRGD\RYHUD\HDUDIWHUWKH                   VKRXOG KDYH NQRZQ RI WKHLU LQWHUHVW LQ WKH FDVH  7KDW
FDVH ZDV UHVROYHG RQ WKH PHULWV DQG LW ZRXOG VWLOO EH                 GXUDWLRQ LV HVVHQWLDOO\ WKH HQWLUHW\ RI WKH VHYHQ PRQWKV
mWLPHO\l  $SSHOODQWV DOVR SRLQW WR RWKHU FDVHV ZKHUH                    EHWZHHQ WKH ILOLQJ RI WKH FRPSODLQW DQG WKH PRWLRQ WR
LQWHUYHQWLRQZDVDOORZHGDIWHUHYHQORQJHUSHULRGVRIWLPH                       LQWHUYHQH%\YLUWXHRI6WXSDN7KUDOO,DQG6WXSDN7KUDOO,,
KDGSDVVHGEHWZHHQWKHILOLQJRIWKHFRPSODLQWDQGWKHPRWLRQ                    WKH DSSHOODQWV KDYH EHHQ LQYROYHG LQWLPDWHO\ LQ OLWLJDWLRQ
WRLQWHUYHQH7KHSURSULHW\RILQWHUYHQWLRQLQDQ\JLYHQFDVH                  DJDLQVWWKHSODLQWLIIVLQWKLVFDVHEHJLQQLQJZHOOEHIRUHWKLV
KRZHYHUPXVWEHPHDVXUHGXQGHUmDOOWKHFLUFXPVWDQFHVlRI                       ODZVXLWZDVHYHUILOHG
WKDWSDUWLFXODUFDVH1$$&3Y1HZ<RUN86DW
7KH DEVROXWH PHDVXUH RI WLPH EHWZHHQ WKH ILOLQJ RI WKH                    $SSHOODQWV FRQFHGH WKDW WKH\ VKRXOG KDYH NQRZQ DQG
FRPSODLQW DQG WKH PRWLRQ WR LQWHUYHQH LV RQH RI WKH OHDVW              SUREDEO\ GLG NQRZ DERXW WKHLU LQWHUHVW LQ WKLV FDVH DQG
LPSRUWDQWRIWKHVHFLUFXPVWDQFHV6HH6LHUUD&OXEY(VS\                   VKRXOGKDYHPRYHGWRLQWHUYHQHPXFKHDUOLHUEXWWKH\DVVHUW
)G   WK &LU  QRWLQJ LQ WKH FRQWH[W RI             WKDW EHFDXVH DSSHOODQW 83(&jV FRXQVHO 0U .XKOPDQQ
PHDVXULQJ WKH WLPHOLQHVV RI D PRWLRQ WR LQWHUYHQH WKDW                  VXGGHQO\ GLHG RQ 6HSWHPEHU   WKH\ ZHUH OHIW
                                                                                 mFRQIXVHGlDERXWZKDWZDVKDSSHQLQJZLWKDOORIWKH6\OYDQLD
                                                                                 :LOGHUQHVV $UHD OLWLJDWLRQ  (YHQ DVVXPLQJ WKDW 0U
     
      ,Q DQ HIIRUW WR JHW IHGHUDO GLVWULFW FRXUWV WR UHVROYH FDVHV PRUH
                                                                                 .XKOPDQQ ZDV OHDG FRXQVHO IRU DOO RI WKH DSSHOODQWV WKLV
TXLFNO\ &RQJUHVV HQDFWHG WKH &LYLO sXVWLFH 5HIRUP $FW RI  
                                                                                 H[FXVHGRHVQRWZLWKVWDQGDQDO\VLVEHIRUHWKLVFDVHZDV
86&    HW   VHT   7KLV $FW UHTXLUHG GLVWULFW FRXUWV WR DGRSW D m&LYLO   HYHU ILOHG LQ GLVWULFW FRXUW DQRWKHU PHPEHU RI 0U
sXVWLFH ([SHQVH DQG 'HOD\ 5HGXFWLRQ 3ODQl 8QGHU WKH 3ODQ SURPXOJDWHG            .XKOPDQQjVILUP0U.LPDSSHDUHGDVFRFRXQVHOIRU83(&
E\ WKH GLVWULFW FRXUW RI WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ WKH GLVWULFW FRXUW
                                                                                 DVDPLFXVFXULDHLQ6WXSDN7KUDOO,,RQDSSHDODQG0U.LP
PXVW DVVLJQ HDFK FDVH WR D mWUDFNl DQG WKHQ PDNH VWURQJ HIIRUWV WR DGKHUH
                                                                                 NQHZRUVKRXOGKDYHNQRZQDERXW6WXSDN7KUDOO,,,WKH
                                                                                 VDPHVLWXDWLRQDSSOLHVWRWKHRWKHUDSSHOODQWVZKRDSSHDUHG
WR WKDW WUDFNjV GHDGOLQHV    sXGJH +ROPHV GLG SUHFLVHO\ WKDW +H DVVLJQHG
WKLV FDVH WR DQ mH[SHGLWHGl WUDFN ZKLFK PHDQW WKDW WKH FDVH ZRXOG mEH
GLVSRVHG RI QLQH WR WZHOYH PRQWKV IURP WKH GDWH WKH FRPSODLQW LV ILOHGl         DVDPLFLFXULDHLQ6WXSDN7KUDOO,,RQDSSHDOZLWKWKHLURZQ
DQG GLVFRYHU\ ZRXOG mEH FRPSOHWHG ZLWKLQ  GD\V IURP WKH GDWH RI WKH           LQGLYLGXDOFRXQVHO0V6FKPLHVLQJDQGHYHQLJQRULQJ
>FDVH PDQDJHPHQW FRQIHUHQFH@l       )HGHUDO /RFDO &RXUW 5XOHV /RFDO           WKHH[LVWHQFHRIFRFRXQVHODSSHOODQWVjH[FXVHVWLOOGRHVQRW
5XOHV RI 3UDF 	 3URF RI WKH 86 'LVW &W IRU WKH :HVWHUQ 'LVW RI 0LFK      H[SODLQWKHLUILYHPRQWKVRILQDFWLRQGXULQJWKHWLPHEHWZHHQ
  QG HG  m'LIIHUHQWLDWHG &DVH 0JW 3ODQ $PHQGHG 2UGHUl
GDWHG 6HSW   ,W LV FHUWDLQO\ IDLU WKHUHIRUH WKDW ZH PHDVXUH WKH
                                                                                 WKH 0D\   ILOLQJ RI WKH FRPSODLQW DQG 0U
DSSHOODQWVj WLPHOLQHVV DJDLQVW GHDGOLQHV ZKLFK &RQJUHVV LWVHOI DVNHG WKH       .XKOPDQQjVGHDWK6LPSO\WKHUHFDQEHOLWWOHGRXEWWKDWWKH
GLVWULFW FRXUW WR VHW
     6WXSDN7KUDOOHWDOY*OLFNPDQHWDO            1R        1R       6WXSDN7KUDOOHWDOY*OLFNPDQHWDO        

   7KHDSSHOODQWVjVHFRQGVWDWHGSXUSRVHLVXQUHDOLVWLFEHFDXVH                mDEVROXWH PHDVXUHV RI WLPHOLQHVV VKRXOG EH LJQRUHGl  $
WKHOLNHOLKRRGWKDWWKHSDUWLHVZLOOVHWWOHLVH[FHHGLQJO\VPDOO              PRUHFULWLFDOIDFWRULVZKDWVWHSVRFFXUUHGDORQJWKHOLWLJDWLRQ
$VGHPRQVWUDWHGDPSO\E\WKHOLWLJDWLRQKLVWRU\UHFLWHGDERYH                 FRQWLQXXPGXULQJ WKLV SHULRG RI WLPH  ,Q WKH LQVWDQW FDVH
WKH SODLQWLIIV DUH VSDULQJ QR
                                   UHVRXUFHV WR FKDOOHQJH IHGHUDO           ZKHQ WKH DSSHOODQWV PRYHG WR LQWHUYHQH GLVFRYHU\ ZDV
UHJXODWLRQ RI &URRNHG /DNH  DQG WKH )HGHUDO 'HIHQGDQWV                 FORVHG WKH H[SHUWV ZHUH SURGXFLQJ WKHLU UHSRUWV DQG WKH
KDYHUHIXVHGWRQHJRWLDWH7KHSDUWLHVPRUHRYHUKDYHKHOG                   FRXUWjVSUHYLRXVO\LGHQWLILHGmILQLVKOLQHloILQDOGLVSRVLWLRQ
VWHDGIDVW ZLWK WKHLU SRVLWLRQV LQ FDVHV ZKHUH WKH FHQWUDO              RIDFDVHRQDQH[SHGLWHGWUDFNVKRXOGRFFXUQLQHWRWZHOYH
TXHVWLRQZDVPHUHO\RQHRIGHJUHHWKHUHDSSHDUVQRSRWHQWLDO                  PRQWKV DIWHU WKH GDWH WKH FRPSODLQW LV ILOHG o ZDV IDVW
IRUWKHSDUWLHVWRVHWWOHWKHLUGLIIHUHQFHVLQWKLVFDVHZKHUHWKH            DSSURDFKLQJ7KHSDUWLFXODUFLUFXPVWDQFHVRIWKHFDVHVFLWHG
FHQWUDO TXHVWLRQ o WKH )HGHUDO 'HIHQGDQWVj DXWKRULW\ WR                 E\ WKH DSSHOODQWV DUH DOO HDVLO\ GLVWLQJXLVKDEOH  (J
UHJXODWH &URRNHG /DNH YHO QRQ o LV RI DQ mDOO RU QRWKLQJl           0RXQWDLQ 7RS &RQGR $VVRF Y 'DYH 6WDEEHUW 0DVWHU
QDWXUH7KXVDSSHOODQWVjVWDWHGSXUSRVHRISURWHFWLQJWKHLU                  %XLOGHU ,QF  )G   UG &LU  DOORZLQJ
FRQFHUQVLQFDVHRIVHWWOHPHQWRXWRIFRXUWLVSUHPLVHGRQD                   LQWHUYHQWLRQDVRIULJKWZKHUHIRXU\HDUVKDGSDVVHGEHWZHHQ
IHDURIDKLJKO\XQOLNHO\K\SRWKHWLFDORFFXUUHQFH                            WKHILOLQJRIWKHFRPSODLQWDQGWKHPRWLRQWRLQWHUYHQHEXW
                                                                               mWKHUHZHUHQRGHSRVLWLRQVWDNHQGLVSRVLWLYHPRWLRQVILOHGRU
   )LQDOO\UHJDUGLQJWKHDSSHOODQWVjWKLUGVWDWHGSXUSRVHWKH                GHFUHHV HQWHUHG GXULQJ WKH IRXU \HDU SHULRG LQ TXHVWLRQl
VWUHQJWKRIWKHDSSHOODQWVjQHHGWRSDUWLFLSDWHDVSDUWLHVLQWKLV             8VHU\ Y %UDQGHO  )5'   :' 0LFK 
OLWLJDWLRQ LQVWHDG RI mRQO\l DV DPLFL FXULDH LV QHFHVVDULO\          LQWHUYHQWLRQDVRIULJKWZDVDOORZHGZKHUHWHQPRQWKVKDG
FRPPHQVXUDWH ZLWK WKHLU ILUVW WZR VWDWHG SXUSRVHV                       SDVVHGEHWZHHQWKHILOLQJRIWKHFRPSODLQWDQGWKHPRWLRQWR
$SSHOODQWVZDQWWREHSDUWLHVVRWKDWWKH\FDQILOHPRWLRQVDQG                LQWHUYHQH EXW WKH VXLW KDG mQRW DGYDQFHG EH\RQG HDUO\
DSSHDOVUDWKHUWKDQPHUHO\DPLFXVEULHIVoWKDWLVDSSHOODQWV                GLVFRYHU\l
ZDQWVRPHVD\LQGHFLGLQJOLWLJDWLRQWDFWLFV$SSHOODQWVDVVHUW
WKDWZLWKRXWWKHVHSURFHGXUDOSURWHFWLRQVWKH\FDQQHLWKHU                     6LPSO\WKHOLWLJDWLRQKDGPDGHH[WHQVLYHSURJUHVVLQWKH
DVVXUH WKDW WKH OLWLJDWLRQ ZLOO EH SXUVXHG E\ WKH )HGHUDO             GLVWULFWFRXUWEHIRUHWKHDSSHOODQWVPRYHGWRLQWHUYHQH7KLV
'HIHQGDQWVQRUWKDWWKHLUSRVLWLRQVZLOOEHPDGHNQRZQWRWKH                  IDFWRUZHLJKVVWURQJO\LQIDYRURIWKHDSSHOOHHV
FRQFHUQHG MXGLFLDO WULEXQDOV  $V QRWHG KRZHYHU WKH
FLUFXPVWDQFHV RI WKLV FDVH DUH VXFK WKDW WKH SURSRVHG                    % 7KH 3XUSRVHV IRU :KLFK $SSHOODQWV 6RXJKW
LQWHUYHQRUVFDQQRWPHDQLQJIXOO\GLIIHUHQWLDWHWKHLUFRQFHUQV                        ,QWHUYHQWLRQ
IURP WKRVH RI WKH )HGHUDO 'HIHQGDQWV DQG JLYHQ WKH
IXQGDPHQWDOQDWXUHRIWKHDWWDFNRQWKHDXWKRULW\RIWKH)RUHVW                   $SSHOODQWVLGHQWLI\WKUHHSXUSRVHVEHKLQGWKHLUPRWLRQWR
                                                                               LQWHUYHQH  WR HQVXUH WKDW WKHLU DUJXPHQWV ZKLFK WKH\
                                                                               FKDUDFWHUL]H DV GLIIHUHQW IURP WKRVH RI WKH )HGHUDO
                                                                               'HIHQGDQWV DUH EHIRUH WKH FRXUW  WR HQVXUH WKDW WKHLU
 UHYHUVLQJ WKH GHQLDO RI DQ LQYHQWRUjV PRWLRQ WR LQWHUYHQH DV RI         GLIIHUHQWFRQFHUQVDUHSURWHFWHGLQWKHHYHQWRIVHWWOHPHQWRXW
ULJKW EHFDXVH WKH SDWHQW KROGHU DJDLQVW ZKRP VXPPDU\ MXGJPHQW KDG            RI FRXUW DQG  WR HQDEOH WKHP WR IXOO\ SDUWLFLSDWH LQ WKH
EHHQ JUDQWHG FKRVH QRW WR DSSHDO WKHUHIRUH WKH LQYHQWRUjV SXUSRVH IRU
LQWHUYHQWLRQ VXSSRUWHG D ILQGLQJ RI WLPHOLQHVV *LYHQ WKH FLUFXPVWDQFHV
                                                                               OLWLJDWLRQE\ILOLQJPRWLRQVDQGDSSHDOV
DFWXDOO\ SUHVHQWHG KRZHYHU DSSHOODQWV LGHQWLI\ QR FULWLFDO SXUSRVH OHIW
XQPHW                                                                            7KHDSSHOODQWVjILUVWSXUSRVHKRZHYHUKDVFOHDUO\EHHQPHW
                                                                               DOUHDG\oWKHGLVWULFWFRXUWGLGFRQVLGHUDOORIWKHDUJXPHQWV
                                                                             DQGHYLGHQFHWKDWDSSHOODQWVEHOLHYHGZDVFULWLFDOE\YLUWXH
      7KH SODLQWLIIVj OLWLJDWLRQ HIIRUWV LQ WKLV DQG UHODWHG FDVHV KDYH EHHQ
VXSSRUWHG E\ WKH 0RXQWDLQ 6WDWHV /HJDO )RXQGDWLRQ                             RIDSSHOODQWVjKDYLQJUHFHLYHGWKHGLVWULFWFRXUWjVSHUPLVVLRQ
       6WXSDN7KUDOOHWDOY*OLFNPDQHWDO         1R        1R        6WXSDN7KUDOOHWDOY*OLFNPDQHWDO             

WR VXEPLW D EULHI DV DPLFL FXULDH  (YHQ LI WKH DSSHOODQWVj        $PHQGPHQW1ROLPLWV3ODLQWLIIVjYDOLGH[LVWLQJULJKWWRXVH
FRQFHUQVLQWKLVFDVHZHUHGLIIHUHQWIURPWKRVHRIWKH)HGHUDO                JDVSRZHUHGPRWRUERDWVRQWKHVXUIDFHRI&URRNHG/DNHLW
'HIHQGDQWVoDSRLQWZHDGGUHVVEHORZoWKHDSSHOODQWVKDYH                   H[FHHGV WKH )RUHVW 6HUYLFHjV DXWKRULW\ DQG LV QRW LQ
KDGDIXOORSSRUWXQLW\WRSUHVHQWWKRVHFRQFHUQVWRWKHGLVWULFW              DFFRUGDQFH ZLWK ODZl HPSKDVLV DGGHG  *LYHQ WKDW WKH
FRXUW:HKDYHKHOGLQRWKHUFDVHVWKDWWKHFRQFHUQVRIDQ                 TXHVWLRQSRVHGLQ6WXSDN7KUDOO,,ZDVRQHRIGHJUHHRQHFDQ
HQWLW\VHHNLQJLQWHUYHQWLRQFDQEHSUHVHQWHGZLWKFRPSOHWH                    VHHKRZWKH)HGHUDO'HIHQGDQWVDQGWKHDSSHOODQWVPLJKWKDYH
VXIILFLHQF\WKURXJKVXFKSDUWLFLSDWLRQ%UHZHUY5HSXEOLF                   GLIIHUHQWVWDNHVLQWKDWFDVH,QWKLVDFWLRQKRZHYHUWKH
6WHHO&RUS)GWK&LUDIILUPLQJ                   FULWLFDOTXHVWLRQLVZKHWKHUWKH)HGHUDO'HIHQGDQWVKDYHDQ\
WKHGLVWULFWFRXUWjVGHQLDORIDPRWLRQE\WKH2KLR&LYLO5LJKWV              DXWKRULW\WRUHJXODWH&URRNHG/DNHDWDOO:LWKWKLVDFWLRQ
&RPPLVVLRQIRUSHUPLVVLYHLQWHUYHQWLRQQRWLQJWKDWLImWKH                   WKHSODLQWLIIVSUD\IRUDSHUPDQHQWLQMXQFWLRQSURKLELWLQJWKH
&RPPLVVLRQ DFFHSWV WKH 'LVWULFW &RXUWjV LQYLWDWLRQ WR                   )RUHVW6HUYLFHIURPmLQFOXGLQJDQ\SRUWLRQRI&URRNHG/DNH
SDUWLFLSDWH LQ WKH OLWLJDWLRQ DV DQ DPLFXV FXULDHl LW ZRXOG         ZLWKLQWKHERXQGDULHVRIWKH6\OYDQLD:LOGHUQHVV$UHDls$
mDIIRUGWKH&RPPLVVLRQDPSOHRSSRUWXQLW\WRJLYHWKHFRXUW                    DWDPHQGHGFRPSODLQWDWZKLFKZRXOGKDYHWKHHIIHFW
WKHEHQHILWRILWVH[SHUWLVHlDQGQRWLQJDOVRWKDWmWKH'LVWULFW             RI FRPSOHWHO\ HOLPLQDWLQJ WKH MXULVGLFWLRQ RI WKH )RUHVW
&RXUW DSSDUHQWO\ ZLOO UHFHLYH DQG FRQVLGHU DQ\ DGPLVVLEOH              6HUYLFH RYHU &URRNHG /DNH  7KH YLHZV RI WKH SURSRVHG
HYLGHQFHWKDWWKH&RPPLVVLRQFKRRVHVWRRIIHUl7KRUQWRQY                  LQWHUYHQRUV DQG WKH )HGHUDO 'HIHQGDQWV DUH LQ FRPSOHWH
(DVW7H[DV0RWRU)UHLJKW,QF)GWK&LU                   DFFRUGRQWKLVTXHVWLRQoWKH\IODWO\RSSRVHDQ\VXFKUXOLQJ
 DIILUPLQJ WKH GLVWULFW FRXUWjV GHQLDO RI WKH ((2&jV            7KHDSSHOODQWVjDVVHUWLRQWKDWWKH\PXVWLQWHUYHQHWRSURWHFW
PRWLRQWRLQWHUYHQHSHUPLVVLYHO\RUDVRIULJKWEXWDOORZLQJ                 WKHLUmGLIIHUHQWlFRQFHUQVLVXQVXSSRUWHG:KHQWKHGLVWULFW
WKH((2&WRSDUWLFLSDWHDVDPLFXVFXULDH$SSHOODQWVKDYH                  FRXUW JUDQWHG VXPPDU\ MXGJPHQW WR WKH GHIHQGDQWV WKH
QRWVXJJHVWHGWKDWWKHGLVWULFWFRXUWLQDQ\ZD\PLQLPL]HGRU                 DSSHOODQWVj FRQFHUQV ZHUH PHW SHUIHFWO\ o QR PRUH DQG QR
LJQRUHG WKHLU H[SUHVVHG FRQFHUQV  )XUWKHU WKHUH LV HYHU\            OHVV
OLNHOLKRRGWKDWWKHDSSHOODQWVZLOOEHSHUPLWWHGWRFRQWLQXH
WKHLUSDUWLFLSDWLRQDVDPLFLFXULDHGXULQJWKHUHODWHGDSSHDORI
6WXSDN7KUDOO ,,, MXVW DV WKH\ KDYH EHHQ DOORZHG WR GR LQ              
6WXSDN7KUDOO,,                                                                     $V QRWHG DERYH IRU H[DPSOH DSSHOODQW &KXUFK GLVDJUHHV ZLWK WKH
                                                                              )RUHVW 6HUYLFH UHJDUGLQJ WKH GHJUHH WR ZKLFK LW VKRXOG SURKLELW ERDWLQJ RQ
                                                                              &URRNHG /DNH 7KH )RUHVW 6HUYLFH PLJKW FRQFOXGH D UHJXODWLRQ DOORZLQJ
  7KHDSSHOODQWVjVHFRQGVWDWHGSXUSRVHLVDWRQFHFRQIXVLQJ                  HOHFWULF PRWRUERDWV LV DSSURSULDWH ZKLOH &KXUFK PLJKW LQVLVW WKDW
DQGXQUHDOLVWLF,WLVFRQIXVLQJEHFDXVHDOWKRXJKDSSHOODQWV                PRWRUERDWV RI DQ\ NLQG VKRXOG EH SURKLELWHG %XW &KXUFK DQG WKH )RUHVW
DUJXH WKH\ KDYH GLIIHUHQW FRQFHUQV WKDQ GR WKH )HGHUDO                6HUYLFH FHUWDLQO\ DJUHH WKDW WKH )RUHVW 6HUYLFH GRHV DQG VKRXOG KDYH
'HIHQGDQWVDSSHOODQWVGRQRWH[SODLQKRZWKLVFDQEHVRLQ                   MXULVGLFWLRQ WR UHJXODWH ERDWLQJ DW DOO
WKHFRQWH[WRIWKLVSDUWLFXODUFDVH7KLVFDVHLVVLJQLILFDQWO\                  
GLIIHUHQW IURP 6WXSDN7KUDOO ,, ZKHUH WKH IXQGDPHQWDO                         ,W LV IRU WKLV UHDVRQ WKDW WKLV &RXUW KDV KHOG LQ DEH\DQFH WKH UHODWHG
TXHVWLRQ ZDV ZKHWKHU WKH )RUHVW 6HUYLFH KDG H[FHHGHG WKH              DSSHDO LQ 6WXSDN7KUDOO ,, D FRQFOXVLRQ LQ 6WXSDN7KUDOO ,,, WKDW WKH

DXWKRULW\WKHSDUWLHVDOODVVXPHGLWKDG6HH6WXSDN7KUDOO,,              )HGHUDO 'HIHQGDQWV KDYH QR MXULVGLFWLRQ WR UHJXODWH &URRNHG /DNH ZRXOG
                                                                              PRRW WKH TXHVWLRQ UDLVHG LQ 6WXSDN7KUDOO ,, RI ZKHWKHU $PHQGPHQW 1R
 ) 6XSS DW  KROGLQJ WKDW m>W@R WKH H[WHQW WKDW             H[FHHGV WKH )RUHVW 6HUYLFHjV DXWKRULW\

                                                                                  
                                                                                    &RQFHLYDEO\ WKH DSSHOODQWVj DUJXPHQWV ZLWK UHVSHFW WR WKLV IDFWRU
     
      2I FRXUVH ZH KDYH DOVR KHOG WKDW SDUWLFLSDWLRQ DV DPLFXV FXULDH ZDV    ZRXOG FDUU\ PRUH ZHLJKW LI IRU H[DPSOH WKH GLVWULFW FRXUW KDG HQWHUHG
LQVXIILFLHQW QHFHVVLWDWLQJ DOORZDQFH RI LQWHUYHQWLRQ (J 0LFKLJDQ 6WDWH   VXPPDU\ MXGJPHQW DJDLQVW WKH )HGHUDO 'HIHQGDQWV ZKR WKHQ GHFLGHG QRW
$)/&,2 Y 0LOOHU  )G  WK &LU                              WR DSSHDO 6HH 7ULD[ &R Y 75: ,QF  )G   WK &LU
