                                                                             5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    &RXQW\6HFXULW\$JHQF\HWDO                1R                   3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

      Y2KLR'HSjWRI&RPPHUFH                                           (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                                                                                      )LOH 1DPH DS

DQ\ GLVFORVXUH RI WKHLU QDPHV WKH JXDUGV DOUHDG\ IDFH WKH
JUHDWHUULVNWKDWVRPHRQHPLJKWVLPSO\VKDGRZWKHPRQWKHLU           81,7('67$7(6&28572)$33($/6
ZD\KRPHIURPZRUN
                                                                                     )257+(6,;7+&,5&8,7
   0RUHRYHU WKH SODLQWLIIV GR QRW SURYLGH VXSSRUW IRU WKH                     BBBBBBBBBBBBBBBBB
DVVHUWLRQ WKDW WKH JXDUGVj DGGUHVVHV DQG VRFLDO VHFXULW\
QXPEHUV FRXOG EH IRXQG LQ WKH SXEOLF GRPDLQ RQFH WKHLU
QDPHVDUHNQRZQ2QHjVWHOHSKRQHQXPEHUQHHGQRWEHOLVWHG
LQWKHWHOHSKRQHGLUHFWRU\DQGWKHSODLQWLIIVGRQRWH[SODLQWKH     &2817< 6(&85,7< $*(1&<              ;
PHFKDQLVP E\ ZKLFK WKH JXDUGVj QDPHV FRXOG EH XVHG WR        HWDO                               
GLVFRYHU WKHLU KRPH DGGUHVVHV RU VRFLDO VHFXULW\ QXPEHUV                   3ODLQWLIIV$SSHOOHHV 
7KHSUHVHQWFDVHLVWKHUHIRUHGLVWLQJXLVKDEOHIURP.DOOVWURP                                                 1R
LQ ZKLFK WKH SROLFH RIILFHUVj DGGUHVVHV DQG WKRVH RI WKHLU                                         
LPPHGLDWH IDPLO\ PHPEHUV ZHUH DW LVVXH  .DOOVWURP                     Y                       !
                                                                                                            
)G DW   %HFDXVH WKH UHFRUG GRHV QRW VXSSRUW WKH                                            
SODLQWLIIVj FODLP WKDW WKH JXDUGVj QDPHV ZRXOG DSSUHFLDEO\     7+( 2+,2 '(3$570(17 2)                
LQFUHDVHWKHVHFXULW\ULVNWKDWWKHJXDUGVFXUUHQWO\IDFHWKH        &200(5&(                             
SODLQWLIIV KDYH QRW FDUULHG WKH mKHDY\ EXUGHQ RI VKRZLQJ                   'HIHQGDQW$SSHOOHH 
MXVWLILFDWLRQIRUWKHLPSRVLWLRQlRIWKHLQMXQFWLRQDVDSULRU                                              
UHVWUDLQWRQ%HW]ROGjVVSHHFK1HZ<RUN7LPHV&R86                                                
DW:HWKHUHIRUHFRQFOXGHWKDWWKHGLVWULFWFRXUWHUUHGLQ                     Y                      
LVVXLQJWKH63,                                                                                            
                                                                      0,&+$(/ s %(7=2/'                   
                     ,,,&21&/86,21                                             ,QWHUYHQRU$SSHOODQW 
                                                                                                            
  )RUDOORIWKHUHDVRQVVHWIRUWKDERYHZH5(9(56(WKH                                                   1
MXGJPHQW RI WKH GLVWULFW FRXUW ',662/9( WKH LQMXQFWLRQ
DJDLQVW %HW]ROG DQG 5(0$1' WKH FDVH IRU IXUWKHU                        $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ                                     IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
                                                                            1RnsRKQ00DQRV'LVWULFWsXGJH
                                                                                      $UJXHG0DUFK
                                                                                   'HFLGHGDQG)LOHGsXO\




                                                                                                   
       &RXQW\6HFXULW\$JHQF\HWDO                   1R   1R                &RXQW\6HFXULW\$JHQF\HWDO         
        Y2KLR'HSjWRI&RPPHUFH                                                                   Y2KLR'HSjWRI&RPPHUFH

%HIRUH6,/(5DQG*,/0$1&LUFXLWsXGJHV+(<%851                    SXEOLFFRQFHUQ6HHHJ1HZ<RUN7LPHV&R86DW
                  &KLHI'LVWULFWsXGJH                               KROGLQJWKDWWKHIHGHUDOJRYHUQPHQWZDVQRWHQWLWOHGWR
                                                                       DQ LQMXQFWLRQ SUHYHQWLQJ WKH 1HZ <RUN 7LPHV DQG WKH
                       BBBBBBBBBBBBBBBBB                               :DVKLQJWRQ 3RVW IURP SXEOLVKLQJ WKH m3HQWDJRQ 3DSHUVl
                                                                       ZKLFKZHUHFODVVLILHGDWWKHWLPHWKDWWKH\ZHUHREWDLQHGE\
                            &2816(/                                    WKHQHZVSDSHUV%HW]ROGjVVSHHFKLVHQWLWOHGWRWKLVVWURQJ
                                                                       SURWHFWLRQEHFDXVHKHLVDMRXUQDOLVWZKRLQWHQGVWRZULWHDQ
$5*8('  3KLOLS +RVWDN %5('+2)) 	 .$,6(5                       DUWLFOHSHUWDLQLQJWRDPDMRUODERUGLVSXWHnDPDWWHURISXEOLF
:DVKLQJWRQ '& IRU $SSHOODQW  $GDP 3 +DOO )5267         FRQFHUQ LPSOLFDWLQJ mWKH FRUH SXUSRVHV RI WKH )LUVW
%52:1 	 72'' &LQFLQQDWL 2KLR IRU $SSHOOHHV                   $PHQGPHQWl %DUWQLFNL Y 9RSSHU  86  
21%5,()3KLOLS+RVWDN5REHUW:HLQEHUJ%5('+2))                    VXEMHFWLQJDZLUHWDSVWDWXWHWRKHLJKWHQHGVFUXWLQ\
	.$,6(5:DVKLQJWRQ'&IRU$SSHOODQW$GDP3+DOO              ZKHQHQIRUFHGDJDLQVWWKHmSXEOLFDWLRQRIWUXWKIXOLQIRUPDWLRQ
0DWWKHZ & %OLFNHQVGHUIHU 7KRPDV ' $PULQH )5267              RISXEOLFFRQFHUQlDVRSSRVHGWRWKHSXEOLFDWLRQRISULYDWH
%52:1	72''&LQFLQQDWL2KLRIRU$SSHOOHHV                         LQIRUPDWLRQ
                       BBBBBBBBBBBBBBBBB                                 7KHUH DUH WZR FODVVHV RI LQIRUPDWLRQ OLVWHG LQ WKH
                                                                       LQMXQFWLRQ  WKH JXDUGV QDPHV DQG  DOO mRWKHU
                           23,1,21                                     LQIRUPDWLRQlFRQFHUQLQJWKHJXDUGV7KHmRWKHULQIRUPDWLRQl
                       BBBBBBBBBBBBBBBBB                               JLYHQ WKDW WKH 2'& LV QR ORQJHU ZLOOLQJ WR PDNH IXUWKHU
  521$/' /(( *,/0$1 &LUFXLW sXGJH  0LFKDHO s                 GLVFORVXUHVLQFOXGHVWKHVHFXULW\JXDUGVjDSSOLFDWLRQGDWHV
%HW]ROG D IUHHODQFH MRXUQDOLVW DSSHDOV D WHPSRUDU\             GDWHVRIKLUHUHJLVWUDWLRQVWDWXVDQGZKHWKHUWKH\FDPHIURP
UHVWUDLQLQJ RUGHU 752 DQG VXSHUVHGLQJ SUHOLPLQDU\               RXWRIVWDWH7KLVLQIRUPDWLRQLVRISXEOLFFRQFHUQEHFDXVHLW
LQMXQFWLRQ SUHYHQWLQJ KLP IURP GLVFORVLQJ LQIRUPDWLRQ             SHUWDLQVWRWKHDFWLRQVRIERWKWKHJRYHUQPHQWDQG$.6WHHO
FRQWDLQHGLQWKHUHJLVWUDWLRQUHFRUGVRISULYDWHVHFXULW\JXDUGV       ZLWK UHVSHFW WR WKH ODERU GLVSXWH  ,W SRVHV QR GLVFHUQLEOH
ZRUNLQJ DW WKH VLWH RI DQ RQJRLQJ ODERU GLVSXWH  %HW]ROG    VHFXULW\WKUHDWWRWKHJXDUGV%HW]ROGjVIUHHVSHHFKLQWHUHVWLQ
UHFHLYHGWKHVHUHFRUGVDIWHUUHTXHVWLQJWKHPIURPWKH2KLR             GLVFORVLQJWKLVmRWKHULQIRUPDWLRQlWKHUHIRUHRXWZHLJKVWKH
'HSDUWPHQW RI &RPPHUFH 2'& DOWKRXJK WKH 2'& QRZ              JXDUGVjLQWHUHVWLQWKHLUSHUVRQDOVHFXULW\
WDNHV WKH SRVLWLRQ WKDW RQO\ ODZ HQIRUFHPHQW DJHQFLHV DUH         7KH VHFXULW\ JXDUGVj QDPHV RQ WKH RWKHU KDQG DUH QRW
HQWLWOHG WR VXFK LQIRUPDWLRQ XQGHU 2KLR ODZ  7KH GLVWULFW    PDWWHUV RI SXEOLF FRQFHUQ EHFDXVH E\ %HW]ROGjV RZQ
FRXUW %HW]ROG DUJXHV LVVXHG WKH 752 DQG SUHOLPLQDU\           DGPLVVLRQWKH\KDYHmQRQHZVYDOXHl7KXV%HW]ROGjVULJKW
LQMXQFWLRQ LQ YLRODWLRQ RI 5XOH  RI WKH )HGHUDO 5XOHV RI   WRGLVVHPLQDWHWKHYHU\SLHFHVRILQIRUPDWLRQZKLFKDUHPRVW
&LYLO 3URFHGXUH  %HW]ROG DOVR FODLPV WKDW WKH SUHOLPLQDU\     OLNHO\ WR WKUHDWHQ WKH JXDUGVj SHUVRQDO VHFXULW\nWKHLU
LQMXQFWLRQVKRXOGQRWKDYHLVVXHGEHFDXVHLWLVDSULRUUHVWUDLQW      QDPHVnZHLJKVOHDVWKHDYLO\LQIDYRURI%HW]ROGjVDVVHUWHG
RI VSHHFK WKXV YLRODWLQJ KLV ULJKWV XQGHU WKH )LUVW           LQWHUHVWV%XWWKHWKUHDWWKDWWKHJXDUGVFXUUHQWO\IDFHIURP
$PHQGPHQW)RUWKHUHDVRQVVHWIRUWKEHORZZH5(9(56(                SURWHVWHUVDW$.6WHHOjV0DQVILHOGIDFLOLW\LVQRWOLNHO\WREH
                                                                       HQKDQFHGWRDQ\DSSUHFLDEOHGHJUHHLIWKHSURWHVWHUVZHUHWR
    
                                                                       OHDUQ WKH JXDUGVj QDPHV SDUWLFXODUO\ JLYHQ WKDW VXFK D
     7KH +RQRUDEOH sRKQ * +H\EXUQ ,, &KLHI 8QLWHG 6WDWHV 'LVWULFW    GLVFORVXUHZRXOGQRWFRXSOHQDPHVZLWKIDFHV(YHQZLWKRXW
sXGJH IRU WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
    &RXQW\6HFXULW\$JHQF\HWDO                   1R     1R                &RXQW\6HFXULW\$JHQF\HWDO          
      Y2KLR'HSjWRI&RPPHUFH                                                                     Y2KLR'HSjWRI&RPPHUFH

ULJKWV,QOLJKWRIWKH2'&jVFXUUHQWSRVLWLRQDJDLQVWIXUWKHU         WKHMXGJPHQWRIWKHGLVWULFWFRXUW',662/9(WKHLQMXQFWLRQ
GLVFORVXUHVRIWKHJXDUGVjUHJLVWUDWLRQLQIRUPDWLRQWRSHUVRQV         DJDLQVW %HW]ROG DQG 5(0$1' WKH FDVH IRU IXUWKHU
RWKHUWKDQSROLFHRIILFHUVWKHSODLQWLIIVHPSKDVL]HWKDWWKH          SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ
UHJLVWUDWLRQUHFRUGVDOUHDG\REWDLQHGE\%HW]ROGFRQWDLQHGWKH
JXDUGVj QDPHV  ,I WKH JXDUGVj QDPHV DUH GLVFORVHG WKH                            ,%$&.*5281'
SODLQWLIIV DUJXH WKHQ WKH JXDUGVj WHOHSKRQH QXPEHUV
DGGUHVVHV DQG VRFLDO VHFXULW\ QXPEHUV ZRXOG EHFRPH                 7KLV FDVH DULVHV IURP D ODERU GLVSXWH DW $. 6WHHO
GLVFRYHUDEOH IURP VRXUFHV LQ WKH SXEOLF GRPDLQ  7KH           &RUSRUDWLRQjV0DQVILHOG2KLRIDFLOLW\$.6WHHOORFNHGRXW
SODLQWLIIVKRZHYHUSODFHGQRSURRILQWKHUHFRUGDVWRKRZ           LWV XQLRQL]HG ZRUNIRUFH LQ 6HSWHPEHU RI  DQG KLUHG
WKLVDGGLWLRQDOLQIRUPDWLRQFRXOGEHGLVFRYHUHG                       &RXQW\6HFXULW\$JHQF\,QF&6$DQ2KLRFRUSRUDWLRQWR
                                                                       SURYLGH VHFXULW\ LQ WKH RIWHQYLROHQW GLVSXWH  6SHFLILF
  7KLVFRXUWKDVGHVFULEHGWKHULJKWWRSHUVRQDOVHFXULW\DV           LQFLGHQWVRIYLROHQFHKDYHLQFOXGHGWKHSODFLQJRISLSHERPEV
IROORZV                                                               RQ$.6WHHOjVSUHPLVHVVODVKHGWLUHVEULFNVWKURZQWKURXJK
                                                                       ZLQGRZV SLJVj KHDGV SODFHG RQ PDQDJHUVj SURSHUW\ DQG
  $VIDUEDFNDVWKH6XSUHPH&RXUWUHFRJQL]HGWKDW               VHFXULW\JXDUGVEHDWHQDVWKH\HVFRUWHGUHSODFHPHQWZRUNHUV
  m>Q@R ULJKW LV KHOG PRUH VDFUHG RU LV PRUH FDUHIXOO\       WRWKHIDFLOLW\
  JXDUGHG    WKDQ WKH ULJKW RI HYHU\ LQGLYLGXDO WR WKH
  SRVVHVVLRQDQGFRQWURORIKLVRZQSHUVRQIUHHIURPDOO                 8QGHU2KLRODZDOOVHFXULW\JXDUGFRPSDQLHVRSHUDWLQJLQ
  UHVWUDLQW RU LQWHUIHUHQFH RI RWKHUV XQOHVV E\ FOHDU DQG     WKHVWDWHPXVWREWDLQUHJLVWUDWLRQDSSOLFDWLRQVIURPWKHLUJXDUG
  XQTXHVWLRQDEOHDXWKRULW\RIODZl                                    HPSOR\HHVDQGSURPSWO\ILOHWKHVHGRFXPHQWVZLWKWKH2'&
                                                                       2KLR5HY&RGH$&$0DQVILHOGRUGLQDQFH
.DOOVWURPY&LW\RI&ROXPEXV)GWK&LU           LQHIIHFWSULRUWR6HSWHPEHURIUHTXLUHGVHFXULW\JXDUG
HQMRLQLQJWKHUHOHDVHRIWKHSHUVRQQHOILOHVFRQWDLQLQJ         HPSOR\HHVWRILOHFRSLHVRIWKHLUUHJLVWUDWLRQDSSOLFDWLRQVZLWK
WKHQDPHVDQGDGGUHVVHVRISROLFHRIILFHUVZKRKDGWHVWLILHG           WKH0DQVILHOGSROLFHGHSDUWPHQW5HJLVWUDWLRQDSSOLFDWLRQV
DJDLQVWPHPEHUVRIDYLROHQWJDQJDVZHOODVWKHQDPHVDQG            FRQWDLQWKHVHFXULW\JXDUGVjQDPHVVRFLDOVHFXULW\QXPEHUV
DGGUHVVHVRIWKHRIILFHUVjLPPHGLDWHIDPLO\PHPEHUVZLWKRXW           KRPH DGGUHVVHV KRPH WHOHSKRQH QXPEHUV GDWHV RI ELUWK
SURYLGLQJSULRUQRWLFHWRWKHRIILFHUVTXRWLQJ8QLRQ3DF5\        ILQJHUSULQWVDQGSKRWRJUDSKV7KHGLVWULFWFRXUWGHFODUHGWKH
Y%RWVIRUG86*LYHQWKHYLROHQW             RUGLQDQFH XQFRQVWLWXWLRQDO LQ sDQXDU\ RI  DQG
KLVWRU\RIWKHODERUGLVSXWHDQGWKHIDFWWKDWSK\VLFDOKRVWLOLW\      SHUPDQHQWO\HQMRLQHG0DQVILHOGIURPHQIRUFLQJLW$PRQJ
KDVDOUHDG\EHHQGLUHFWHGDWWKHJXDUGVWKHPDLQWHQDQFHRI            WKH GLVWULFW FRXUWjV JURXQGV IRU ILQGLQJ WKH RUGLQDQFH
WKH VHFXULW\ JXDUGVj SULYDF\ LV QHFHVVDU\ WR SURWHFW WKHLU     XQFRQVWLWXWLRQDO ZDV WKDW LW YLRODWHG WKH VHFXULW\ JXDUGVj
FRQVWLWXWLRQDOULJKWWRSHUVRQDOVHFXULW\:HPXVWWKXVDVN           FRQVWLWXWLRQDOO\SURWHFWHGULJKWRISULYDF\
ZKHWKHUWKHWKUHDWWRWKHVDIHW\RIWKHVHFXULW\JXDUGVSRVHGE\
%HW]ROGjVSRWHQWLDOGLVVHPLQDWLRQRIWKHLUmQDPHVDQGRWKHU               )ROORZLQJ WKH GLVWULFW FRXUWjV GHFLVLRQ RQ WKLV LVVXH WKH
LQIRUPDWLRQlFRQWDLQHGLQWKHGRFXPHQWVLVVXIILFLHQWO\JUDYH         ORFDO DIILOLDWH RI WKH 8QLWHG 6WHHOZRUNHUV RI $PHULFD WKH
VRDVWRMXVWLI\WKH63,jVUHVWULFWLRQRI%HW]ROGjVVSHHFK            8QLRQKLUHG%HW]ROGDQGWZRRWKHUVDVIUHHODQFHMRXUQDOLVWV
                                                                       WRLQYHVWLJDWHDQGZULWHDUHSRUWWKDWFRXOGIRUPWKHEDVLVIRU
  *UHDWSURWHFWLRQLVDIIRUGHGE\WKH)LUVW$PHQGPHQWWRWKH           D SXEOLVKHG DUWLFOH DERXW WKH FRPSDQLHV SURYLGLQJ VHFXULW\
SUHVVjVIUHHGRPWRSXEOLVKLQIRUPDWLRQUHODWLQJWRPDWWHUVRI          JXDUGV DQG KLULQJ UHSODFHPHQW ZRUNHUV LQ ODERU GLVSXWHV
     &RXQW\6HFXULW\$JHQF\HWDO                   1R       1R                &RXQW\6HFXULW\$JHQF\HWDO        
      Y2KLR'HSjWRI&RPPHUFH                                                                       Y2KLR'HSjWRI&RPPHUFH

%HW]ROGWKHQWHOHSKRQHGWKH2'&ZKLFKLVUHTXLUHGE\ODZ                FRPPXQLFDWLRQVDUHWRRFFXU7HPSRUDU\UHVWUDLQLQJRUGHUV
WRSHUIRUPUHTXLUHGEDFNJURXQGFKHFNVDQGPDLQWDLQUHFRUGV               DQG SHUPDQHQW LQMXQFWLRQVnLH FRXUW RUGHUV WKDW DFWXDOO\
RQHDFKOLFHQVHGDQGUHJLVWHUHGVHFXULW\FRPSDQ\DQGJXDUG              IRUELG VSHHFK DFWLYLWLHVnDUH FODVVLF H[DPSOHV RI SULRU
2KLR5HY&RGH                                                UHVWUDLQWVl$OH[DQGHUY8QLWHG6WDWHV86
                                                                         HPSKDVLVDQGFLWDWLRQVRPLWWHG7KH63,SUHYHQWV
   8SRQEHLQJLQIRUPHGE\WKH2'&WKDWWKHDSSOLFDWLRQVRI               %HW]ROG IURP GLVFORVLQJ mQDPHV DQG RWKHU LQIRUPDWLRQ
VHFXULW\JXDUGFRPSDQLHVGRLQJEXVLQHVVLQ2KLRZHUHSXEOLF              FRQFHUQLQJ VHFXULW\ JXDUGV IURP WKH 'HSDUWPHQW RI
UHFRUGVDYDLODEOHIRUSXEOLFLQVSHFWLRQ%HW]ROGVXEPLWWHGD             &RPPHUFHl  %HFDXVH WKH 63, UHVWUDLQV %HW]ROGjV IXWXUH
ZULWWHQUHTXHVWWRWKH2'&RQ)HEUXDU\WRH[DPLQH               VSHHFKLWLVDSULRUUHVWUDLQW
DQ\SXEOLFLQIRUPDWLRQIURPWKHUHJLVWUDWLRQUHFRUGVRI&6$
7KH2'&WKHQID[HG%HW]ROGGRFXPHQWVWKDWFRQWDLQHGWKH                     m$Q\ V\VWHP RI SULRU UHVWUDLQWV RI H[SUHVVLRQ >EHDUV@ D
QDPHV RI WKH VHFXULW\ JXDUGV DV ZHOO DV WKHLU DSSOLFDWLRQ      KHDY\SUHVXPSWLRQDJDLQVWLWVFRQVWLWXWLRQDOYDOLGLW\lDQGD
GDWHVGDWHVRIKLUHUHJLVWUDWLRQVWDWXVDQGZKHWKHUWKH\FDPH         SDUW\ZKRVHHNVWRKDYHVXFKDUHVWUDLQWXSKHOGmWKXVFDUULHV
IURPRXWRIVWDWH1RWDEO\WKHVHGRFXPHQWVGLGQRWFRQWDLQ             DKHDY\EXUGHQRIVKRZLQJMXVWLILFDWLRQIRUWKHLPSRVLWLRQRI
WKHVHFXULW\JXDUGVjVRFLDOVHFXULW\QXPEHUVKRPHDGGUHVVHV            VXFKDUHVWUDLQWl1HZ<RUN7LPHV&RY8QLWHG6WDWHV
WHOHSKRQH QXPEHUV GDWHV RI ELUWK ILQJHUSULQWV RU                86SHUFXULDPFLWDWLRQVRPLWWHG7KLV
SKRWRJUDSKV                                                           EXUGHQ KRZHYHU LV QRW LPSRVVLEOH WR RYHUFRPH  $ SULRU
                                                                         UHVWUDLQWLVSHUPLVVLEOHLIWKHUHVWUDLQHGVSHHFKSRVHVmDJUDYH
  )URPWKHLQIRUPDWLRQKHUHFHLYHG%HW]ROGGHWHUPLQHGWKDW              WKUHDWWRDFULWLFDOJRYHUQPHQWLQWHUHVWRUWRDFRQVWLWXWLRQDO
&6$KLUHGPRVWRILWVJXDUGVIURPRXWVLGHRI2KLRDQGWKDW               ULJKWl3URFWHU	*DPEOH)GDWYDFDWLQJWZR
WKH 2'& KDG QRW H[SHGLWLRXVO\ FDUULHG RXW WKH UHTXLUHG           752VDQGDSHUPDQHQWLQMXQFWLRQSURKLELWLQJ%XVLQHVV:HHN
EDFNJURXQGFKHFNVRQWKHJXDUGV%HW]ROGFRQVLGHUHGWKLV                IURP SXEOLVKLQJ GLVFRYHU\ PDWHULDOV WKDW KDG EHHQ ILOHG DV
LQIRUPDWLRQWREHmRILQWHUHVWWRWKHSXEOLFLQ0DQVILHOGDQG            FRQILGHQWLDOSXUVXDQWWR5XOHRIWKH)HGHUDO5XOHVRI&LYLO
LQ 2KLRl  +H DVVHUWHG RQ WKH RWKHU KDQG WKDW KH GLG QRW   3URFHGXUH EHFDXVH WKH SODQQHG SXEOLFDWLRQ GLG QRW SRVH D
LQWHQGWRSXEOLVKWKHVHFXULW\JXDUGVjQDPHVEHFDXVHWKHUH              WKUHDWVXIILFLHQWWRMXVWLI\WKHLQMXQFWLYHRUGHUV,QVXFKD
ZRXOG KDYH EHHQ mQR QHZV YDOXHl LQ GRLQJ VR  :LWK WKH        VLWXDWLRQKRZHYHUWKHUHVWUDLQWPXVWEHQDUURZO\GUDZQDQG
LQIRUPDWLRQ KH REWDLQHG IURP WKH 2'& %HW]ROG EHJDQ WR           EHWKHOHDVWUHVWULFWLYHPHDQVDYDLODEOH&%6,QFY<RXQJ
SUHSDUH DQ DUWLFOH IRU SXEOLFDWLRQ WKDW IRFXVHG RQ WKH           )GWK&LUKROGLQJWKDW
EDFNJURXQGVRIWKHVHFXULW\JXDUGVDQGWKHLPSDFWWKDWWKH               DQ RUGHU SURKLELWLQJ FRXQVHO FRXUW SHUVRQQHO SDUWLHV DQG
VHFXULW\FRPSDQLHVKDYHRQWKHFRPPXQLWLHVLQZKLFKWKH\                 SDUWLHVjUHODWLYHVIULHQGVDQGDVVRFLDWHVIURPGLVFXVVLQJmLQ
RSHUDWH                                                                 DQ\ PDQQHU ZKDWVRHYHUl WKH SHUVRQDO LQMXU\ DQG ZURQJIXO
                                                                         GHDWK FDVHV EHIRUH WKH FRXUW ZDV DQ LQYDOLG SULRU UHVWUDLQW
   2Q)HEUXDU\nRQHZHHNDIWHUWKH2'&KRQRUHG                   EHFDXVH DPRQJ RWKHU UHDVRQV RI LWV mYDJXHQHVV DQG
%HW]ROGjVUHTXHVWn&6$DQG$.6WHHOWKHSODLQWLIIVILOHG                RYHUEUHDGWKl
VXLWDJDLQVWWKH2'&SXUVXDQWWR86&DOOHJLQJ
WKDW WKH GLYXOJLQJ RI LQIRUPDWLRQ UHJDUGLQJ WKH SULYDWH             7KHSODLQWLIIVFRQWHQGWKDWWKH63,LVMXVWLILHGEHFDXVHWKH
VHFXULW\ JXDUGV ZRXOG YLRODWH WKH SODLQWLIIVj FRQVWLWXWLRQDO       QHHG WR SURWHFW WKH VHFXULW\ JXDUGVj FRQVWLWXWLRQDO ULJKW WR
ULJKWV7KH\VRXJKWDQRUGHUGHFODULQJWKDWWKHVHFXULW\            mSHUVRQDO VDIHW\ DQG ERGLO\ LQWHJULW\l RXWZHLJKV WKH KDUP
JXDUGVmKDYHDFRQVWLWXWLRQDOO\SURWHFWHGSULYDF\LQWHUHVWLQ            GRQH E\ DQ\ LQIULQJHPHQW RI %HW]ROGjV )LUVW $PHQGPHQW
     &RXQW\6HFXULW\$JHQF\HWDO                 1R       1R               &RXQW\6HFXULW\$JHQF\HWDO        
       Y2KLR'HSjWRI&RPPHUFH                                                                    Y2KLR'HSjWRI&RPPHUFH

      )LUVW$PHQGPHQWDQDO\VLV                                        SUHYHQWLQJ WKH SXEOLF UHOHDVH RI UHJLVWUDWLRQ DSSOLFDWLRQV
                                                                        ZKLFK FRQWDLQ WKHLU QDPH VRFLDO VHFXULW\ QXPEHU  KRPH
  ,QJHQHUDOZHZLOOUHYHUVHWKHLVVXDQFHRIDSUHOLPLQDU\             DGGUHVVKRPHWHOHSKRQHQXPEHUGDWHRIELUWKILQJHUSULQWV
LQMXQFWLRQ RQO\ LI WKH GLVWULFW FRXUW DEXVHG LWV GLVFUHWLRQ    DQGSKRWRJUDSKlDQGHQMRLQLQJWKH2'&IURPmDOORZLQJ
*ROGHQY.HOVH\+D\HV&R)GWK&LU             LQVSHFWLRQ RI RU SURYLGLQJ FRSLHV RIl WKH UHJLVWUDWLRQ
 KROGLQJ WKDW WKH GLVWULFW FRXUW GLG QRW DEXVH LWV       DSSOLFDWLRQVFRQWDLQLQJVXFKLQIRUPDWLRQZLWKUHJDUGWRDQ\
GLVFUHWLRQLQLVVXLQJDSUHOLPLQDU\LQMXQFWLRQWKDWSUHYHQWHG           SDVWRUSUHVHQWHPSOR\HHVRI&6$ZKRKDYHZRUNHGDW$.
DQ HPSOR\HU IURP XQLODWHUDOO\ FKDQJLQJ WKH WHUPV RI LWV         6WHHOjV0DQVILHOGIDFLOLW\7KHSODLQWLIIVDOVRILOHGDPRWLRQ
HPSOR\HH KHDOWK LQVXUDQFH SODQ m:KHQ SUHVHQWHG ZLWK D          IRU D SUHOLPLQDU\ LQMXQFWLRQ DJDLQVW WKH 2'&  %RWK WKH
PRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQDGLVWULFWFRXUWFRQVLGHUV         FRPSODLQWDQGPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQQDPHGWKH
IRXUIDFWRUVWKHSODLQWLIIVjOLNHOLKRRGRIVXFFHVVRQWKH          2'& DV WKH VROH GHIHQGDQW  1HLWKHU WKH VXPPRQV WKH
PHULWVZKHWKHUWKHSODLQWLIIVFRXOGVXIIHULUUHSDUDEOHKDUP        FRPSODLQWWKHPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQQRUDQ\
ZLWKRXW WKH LQMXQFWLRQ  ZKHWKHU JUDQWLQJ WKH LQMXQFWLRQ      VXSSRUWLQJ GRFXPHQW PHQWLRQHG %HW]ROG DQG KH ZDV QRW
ZLOOFDXVHVXEVWDQWLDOKDUPWRRWKHUVDQGWKHLPSDFWRIWKH        VHUYHGZLWKSURFHVV
LQMXQFWLRQRQWKHSXEOLFLQWHUHVWl,GDWm1RQHRIWKHVH
IDFWRUVVWDQGLQJDORQHLVDSUHUHTXLVLWHWRUHOLHIUDWKHUWKH          $SSUR[LPDWHO\ RQH ZHHN ODWHU RQ 0DUFK   WKH
FRXUWVKRXOGEDODQFHWKHPl,G                                      SODLQWLIIVILOHGDPRWLRQVHHNLQJD752WRSUHYHQWWKH2'&
                                                                        DQG%HW]ROGIURPGLVFORVLQJWKHLQIRUPDWLRQFRQWDLQHGLQWKH
   $V WKH GLVWULFW FRXUW UHFRJQL]HG KRZHYHU m>Z@KHQ )LUVW      VHFXULW\ JXDUGVj UHJLVWUDWLRQ DSSOLFDWLRQV  7KH SODLQWLIIV
$PHQGPHQWULJKWVDUHLPSOLFDWHGWKHIDFWRUVIRUJUDQWLQJD             DVVHUWHG WKDW WKH\ WRRN WKLV DFWLRQ EHFDXVH WKH\ KDG MXVW
SUHOLPLQDU\ LQMXQFWLRQ HVVHQWLDOO\ FROODSVH LQWR D                 OHDUQHGWKDWWKH2'&KDGPLVWDNHQO\UHOHDVHGWKHLQIRUPDWLRQ
GHWHUPLQDWLRQ RI ZKHWKHU UHVWULFWLRQV RQ )LUVW $PHQGPHQW          WR%HW]ROGDQGWKH\VXVSHFWHGWKDW%HW]ROGZRXOGWXUQLWRYHU
ULJKWVDUHMXVWLILHGWRSURWHFWFRPSHWLQJFRQVWLWXWLRQDOULJKWVl       WRWKH8QLRQ7KH\IXUWKHUIHDUHGWKDWWKH8QLRQZRXOGXVH
7KLV FRXUW KDVQRWHGWKDWLQJHQHUDOZKHQDGLVWULFWFRXUW          WKHLQIRUPDWLRQWRKDUDVVDQGLQWLPLGDWHWKHVHFXULW\JXDUGV
LVVXHV D 752 LW LV WR mUHYLHZ IDFWRUV VXFK DV WKH SDUW\jV   ZRUNLQJDWWKH$.6WHHOIDFLOLW\GXULQJWKHORFNRXW
OLNHOLKRRG RI VXFFHVV RQ WKH PHULWV DQG WKH WKUHDW RI
LUUHSDUDEOHLQMXU\lEXWm>L@QWKHFDVHRIDSULRUUHVWUDLQWRQ           :LWKRXWQRWLI\LQJ%HW]ROGRUUHTXLULQJWKHSODLQWLIIVWRGR
SXUH VSHHFK WKH KXUGOH LV VXEVWDQWLDOO\ KLJKHU SXEOLFDWLRQ     VR WKH GLVWULFW FRXUW KHOG DQ LQFKDPEHUV FRQIHUHQFH ZLWK
PXVW WKUHDWHQ DQ LQWHUHVW PRUH IXQGDPHQWDO WKDQ WKH )LUVW       FRXQVHOIRUWKHSODLQWLIIVDQGWKH2'&RQWKHIROORZLQJGD\
$PHQGPHQWLWVHOIl3URFWHU	*DPEOH&RY%DQNHUV7UXVW               7KH2'&GLGQRWFRQWHVWWKHLVVXDQFHRIWKH752DQGQR
&R  )G   WK &LU   ,Q UHYLHZLQJ D    HIIRUW ZDV PDGH WR FRQWDFW %HW]ROG GXULQJ WKH SURFHHGLQJ
SUHOLPLQDU\LQMXQFWLRQZLWK)LUVW$PHQGPHQWLPSOLFDWLRQV               7KDWDIWHUQRRQWKHGLVWULFWFRXUWLVVXHGWKH752,WSURYLGHG
mWKHVWDQGDUGRIUHYLHZLVGLIIHUHQWl,GDWm:HUHYLHZ         DPRQJ RWKHU WKLQJV WKDW m0LFKDHO %HW]ROG DQG DOO RWKHU
)LUVW$PHQGPHQWTXHVWLRQVGHQRYRl,G                                SHUVRQV ZKR KDYH UHFHLYHG WKH QDPHV DQG LQIRUPDWLRQ
                                                                        FRQFHUQLQJ WKH VHFXULW\ JXDUGV IURP WKH 'HSDUWPHQW RI
  %HW]ROGDUJXHVWKDWWKH63,LVDmSULRUUHVWUDLQWlRQVSHHFK         &RPPHUFHDUHHQMRLQHGIURPGLVFORVLQJVXFKQDPHVDQGRWKHU
WKDWYLRODWHVKLVULJKWVXQGHUWKH)LUVW$PHQGPHQW2QHW\SH           LQIRUPDWLRQWRDQ\RQHHOVHl
RI SULRU UHVWUDLQW LV D MXGLFLDO RUGHU mIRUELGGLQJ FHUWDLQ
FRPPXQLFDWLRQVZKHQLVVXHGLQDGYDQFHRIWKHWLPHWKDWVXFK
     &RXQW\6HFXULW\$JHQF\HWDO                1R       1R                &RXQW\6HFXULW\$JHQF\HWDO         
      Y2KLR'HSjWRI&RPPHUFH                                                                    Y2KLR'HSjWRI&RPPHUFH

   %HW]ROG UHFHLYHG D FRS\ RI WKH 752 RQ 0DUFK       IXWXUHDQGDFFRUGLQJO\GLGQRWVHWIRUWKVXFKDUJXPHQWVDV
%HFDXVHKHmSHUVRQDOO\GLGQRWZDQWWRFRQWLQXHZKHQ,KDG            SDUWRIKLVPRWLRQWRLQWHUYHQH7KHGLVWULFWFRXUWFRXOGQRW
DQLQMXQFWLRQLVVXHGDJDLQVWPHl%HW]ROGVWRSSHGZRUNLQJRQ          IDLUO\H[SHFW%HW]ROGWRDQWLFLSDWHWKDWKLVPRWLRQWRLQWHUYHQH
WKHDUWLFOH2Q0DUFKWKHGLVWULFWFRXUWLVVXHGD          ZRXOGFRQVWLWXWHKLVRQO\RSSRUWXQLW\WREHKHDUGFRQFHUQLQJ
m1RWLFH RI 3UHOLPLQDU\ ,QMXQFWLRQ +HDULQJl WR EH KHOG RQ      WKHVXEVWDQWLYHEDVLVIRUGHQ\LQJDQLQMXQFWLRQ+LVPRWLRQ
$SULOZKLFKZDVVHQWWRFRXQVHOIRUWKHSODLQWLIIV          WR LQWHUYHQH WKHUHIRUH GLG QRW FRQVWLWXWH D KHDULQJ RQ WKH
DQG WKH 2'& EXW DJDLQ QRW WR %HW]ROG  7ZR GD\V ODWHU    PHULWVRIWKH63,7KHGLVWULFWFRXUWWKXVIDLOHGWRFRPSO\
%HW]ROGPRYHGWRLQWHUYHQHLQWKHODZVXLWWKDWKDGVSDZQHG            ZLWK5XOHDZKHQLWLVVXHGWKH63,EHIRUH%HW]ROGKDG
WKH752%HW]ROGVWDWHVLQKLVPRWLRQWRLQWHUYHQHDVRIULJKW       DQRSSRUWXQLW\WREHKHDUG
WKDWKHZDVVHHNLQJWRFKDOOHQJHWKHLVVXDQFHRIWKH752RQ
WKHJURXQGVWKDWmDQ\LQMXQFWLYHUHOLHIWKDWLVVXHVRUKDVLVVXHG       %HW]ROGKRZHYHUGLGHYHQWXDOO\KDYHDKHDULQJ ,QKLV
DJDLQVW>KLP@LVRXWVLGHRIWKH&RXUWjVDXWKRULW\XQGHU5XOH          PRWLRQWRGLVVROYHWKH63,%HW]ROGGLGQRWOLPLWKLPVHOIWR
G RI WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUHl DQG mWKLV    DUJXLQJWKDWWKH63,ZDVSURFHGXUDOO\GHILFLHQW,QVWHDGKH
&RXUWGRHVQRWKDYHSHUVRQDOMXULVGLFWLRQRYHU>KLP@l,QWKH        VHW IRUWK VXEVWDQWLYH DUJXPHQWV RQ WKH PHULWV RI WKH
DOWHUQDWLYH%HW]ROGDOVRDUJXHGWKDWHYHQLIWKHFRXUWODWHU        LQMXQFWLRQFRQWHQGLQJWKDWLWVKRXOGQRWKDYHLVVXHGEHFDXVH
GHFLGHG WKDW LW GLG KDYH MXULVGLFWLRQ RYHU KLP WKH 2'&jV    WKH2'&ODZIXOO\GLVFORVHGWRKLPWKHUHJLVWUDWLRQPDWHULDOV
UHOHDVH RI WKH GRFXPHQWV ZDV ODZIXO  $OWKRXJK %HW]ROGjV      WKDWKHKDGUHFHLYHGDQGEHFDXVHWKHLQMXQFWLRQZDVDSULRU
PRWLRQWRLQWHUYHQHVWDWHVWKDWKHLQWHQGHGWRFRQWHVWDQ\SDVW       UHVWUDLQWWKDWYLRODWHGKLV)LUVW$PHQGPHQWULJKWV7KHVHDUH
RUIXWXUHLQMXQFWLYHUHOLHIDJDLQVWKLPRQWKHVHJURXQGVWKH         HVVHQWLDOO\ WKH VDPH DUJXPHQWV KH PDNHV RQ DSSHDO  :H
PRWLRQLWVHOIGLGQRWPDNHWKHVHDUJXPHQWV,WZDVLQVWHDG            WKHUHIRUHFRQFOXGHWKDWWKHGLVWULFWFRXUWjVFRQVLGHUDWLRQRI
FRQFHUQHGZLWKHVWDEOLVKLQJWKHUHTXLUHPHQWVIRULQWHUYHQWLRQ         %HW]ROGjVPRWLRQWRGLVVROYHFRQVWLWXWHGDKHDULQJRQZKHWKHU
XQGHU5XOHRIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH                DQLQMXQFWLRQVKRXOGLVVXH.DHSD,QFY$FKLOOHV&RUS
                                                                      )GWK&LUKROGLQJWKDWZKHUHOHJDODQG
  2Q $SULO   WKH GLVWULFW FRXUW VLJQHG DQ RUGHU      QRWIDFWXDOLVVXHVDUHLQGLVSXWHWKHQRWLFHUHTXLUHPHQWRI
JUDQWLQJ%HW]ROGjVPRWLRQWRLQWHUYHQHDVRIULJKW:LWKRXW          5XOHDGRHVQRWUHTXLUHDQRUDOKHDULQJDQGWKDWWKH
QRWLFHWR%HW]ROGDQGZLWKRXWKROGLQJDKHDULQJWKHGLVWULFW         FRXUWjVFRQVLGHUDWLRQRIOHJDOPHPRUDQGDPD\FRQVWLWXWHD
FRXUWDOVRLVVXHGDm6WLSXODWHG3UHOLPLQDU\,QMXQFWLRQl63,         KHDULQJVRORQJDVERWKSDUWLHVDUHmJLYHQµDPSOHRSSRUWXQLW\
VLJQHG E\ FRXQVHO IRU WKH SODLQWLIIV DQG WKH 2'& WKH         WR SUHVHQW WKHLU UHVSHFWLYH YLHZV RI WKH OHJDO LVVXHV
IROORZLQJGD\%HW]ROGjVPRWLRQWRLQWHUYHQHZDVJUDQWHGRQ          LQYROYHGjlFLWDWLRQRPLWWHG$VDUHVXOWWKH63,FHDVHGWR
$SULO   WKH VDPH GD\ WKDW WKH 36, ZDV HQWHUHG RI   VXIIHUIURPSURFHGXUDOGHIHFWVIURPWKHWLPHRIWKHGLVWULFW
UHFRUG  7KH 63, HQMRLQHG WKH 2'& DQG %HW]ROG IURP           FRXUWjV UXOLQJ RQ %HW]ROGjV PRWLRQ LQ 'HFHPEHU RI 
UHOHDVLQJQRWRQO\WKHQDPHVRIWKHJXDUGVEXWDOVRDQ\mRWKHU       %DQNHY1RYDGHO$JHQH&RUS)GWK&LU
LQIRUPDWLRQlIURPWKHUHJLVWUDWLRQDSSOLFDWLRQVQRWLQJWKDW           KROGLQJ WKDW D UHKHDULQJ RQ D PRWLRQ WR VHW DVLGH D
m>Q@HLWKHUWKH'HSDUWPHQWRI&RPPHUFHQRULWVFRXQVHODUH           SHUPDQHQW LQMXQFWLRQ FXUHG WKH ODFN RI SULRU QRWLFH RI WKH
ZLOOLQJ WRSURYLGHYROXQWDU\ZULWWHQDVVXUDQFHWR3ODLQWLIIV         LQMXQFWLRQ7KH63,DJDLQVW%HW]ROGLVWKHUHIRUHSURFHGXUDOO\
WKDW DGGLWLRQDO LQIRUPDWLRQ ZLOO QRW EH UHOHDVHG EHIRUH WKH   VXIILFLHQW
&RXUWjVILQDOGHWHUPLQDWLRQRI3ODLQWLIIVjFODLPl7KHGLVWULFW
FRXUWIRXQGWKDWWKH2'&jVGLVFORVXUHVWR%HW]ROGFRXSOHG
ZLWKLWVIDLOXUHWRLQVXUHDJDLQVWIXUWKHUGLVFORVXUHVZKLFK
    &RXQW\6HFXULW\$JHQF\HWDO                 1R       1R               &RXQW\6HFXULW\$JHQF\HWDO         
      Y2KLR'HSjWRI&RPPHUFH                                                                    Y2KLR'HSjWRI&RPPHUFH

     F   5XOH D RI WKH )HGHUDO 5XOHV RI &LYLO           PLJKW LQFOXGH WKH JXDUGVj VRFLDO VHFXULW\ QXPEHUV KRPH
          3URFHGXUH                                                    DGGUHVVHV KRPH WHOHSKRQH QXPEHUV GDWHV RI ELUWK
                                                                       ILQJHUSULQWVDQGSKRWRJUDSKVSURYLGHGWKHSODLQWLIIVZLWK
  3XUVXDQW WR 5XOH D m>Q@R SUHOLPLQDU\ LQMXQFWLRQ        mJRRGUHDVRQWREHOLHYHWKDWXQOHVVWKH>2'&@LVHQMRLQHGE\
VKDOOEHLVVXHGZLWKRXWQRWLFHWRWKHDGYHUVHSDUW\l)HG5         WKLV&RXUWIURPUHOHDVLQJWKHUHJLVWUDWLRQDSSOLFDWLRQVWKH
&LY3D7KHW\SHRIQRWLFHUHTXLUHGLVQRWVSHFLILHG       JXDUGVjSULYDWHSHUVRQDOLQIRUPDWLRQPD\EHUHOHDVHGXSRQ
,Q%HW]ROGjVPRWLRQWRLQWHUYHQHKHREMHFWHGWRWKHGLVWULFW          UHTXHVWl$VDUHVXOWRIWKH752DQGWKH63,DOOHIIRUWVWR
FRXUWjVLVVXDQFHRIDQ\RUGHUVWKDWPLJKWDGYHUVHO\DIIHFWKLV         SXEOLVK %HW]ROGjV DUWLFOH ZHUH KDOWHG  7KH SUHOLPLQDU\
LQWHUHVWV%HW]ROGWKHUHIRUHGHPRQVWUDWHGKLVDFWXDOQRWLFHRI        LQMXQFWLRQKHDULQJWKDWKDGEHHQVFKHGXOHGIRU$SULO
WKHIDFWWKDWSURFHHGLQJVKDGEHHQLQLWLDWHGWKDWPLJKWUHVXOW         ZDVQHYHUKHOG
LQDSUHOLPLQDU\LQMXQFWLRQDJDLQVWKLP
                                                                         2Q0D\%HW]ROGILOHGDPRWLRQWRGLVVROYHWKH63,
   %XWWKHQRWLFHUHTXLUHPHQWRI5XOHDDOVRmLPSOLHV           ZLWKUHVSHFWWRKLPVHOIDQGDQ\mQRQSDUWLHVlWRWKHODZVXLW
DKHDULQJLQZKLFKWKHGHIHQGDQWLVJLYHQDIDLURSSRUWXQLW\WR        RULQWKHDOWHUQDWLYHWRVWD\WKHLQMXQFWLRQSHQGLQJDSSHDO
RSSRVHWKHDSSOLFDWLRQDQGWRSUHSDUHIRUVXFKRSSRVLWLRQl            %HW]ROGjV VXSSRUWLQJ PHPRUDQGXP FKDOOHQJHG WKH 63, RQ
:LOOLDPVY0F.HLWKHQ)GWK&LU             MXULVGLFWLRQDOGXHSURFHVV5XOH  DQG)LUVW$PHQGPHQW
LQWHUQDOTXRWDWLRQPDUNVRPLWWHG7KLVFRXUWKDVKHOGWKDW          JURXQGV:KHQWKHGLVWULFWFRXUWIDLOHGWRWDNHDFWLRQRQKLV
5XOH  mFRQWHPSODWHV WKDW WKH LVVXDQFH RI D SUHOLPLQDU\       PRWLRQE\0D\WKHODVWGD\WKDWKHFRXOGWLPHO\
LQMXQFWLRQVKDOOEHXSRQQRWLFHWRWKHDGYHUVHSDUW\DQGDIWHU         DSSHDOWKH63,%HW]ROGILOHGDQRWLFHRIDSSHDOEDVHGXSRQ
DKHDULQJl&DUSHQWHUVj'LVW&RXQFLOY&LFFL)G          WKHVDPHJURXQGVDVKLVPRWLRQWRGLVVROYHWKHLQMXQFWLRQ
WK&LUHPSKDVLVDGGHG                                     %HW]ROGDOVRSHWLWLRQHGWKLVFRXUWIRUDZULWRIPDQGDPXVDQG
                                                                       PRYHGIRUDVWD\RIWKH63,SHQGLQJDGHFLVLRQ
  7KHSODLQWLIIVDUJXHWKDWDKHDULQJZDVQRWUHTXLUHGEHFDXVH
%HW]ROGGLGQRWFRQWHVWWKHIDFWXDOEDVLVXQGHUO\LQJWKH63,            7KLVFRXUWGHQLHG%HW]ROGjVPDQGDPXVSHWLWLRQDQGPRWLRQ
$KHDULQJRQZKHWKHUDSUHOLPLQDU\LQMXQFWLRQVKRXOGLVVXH            IRUDVWD\LQsXQHRIEXWZKLOHUHWDLQLQJMXULVGLFWLRQ
KRZHYHUmHPERGLHVWKHULJKWWREHKHDUGRQWKHFRQWURYHUWHG           RYHU%HW]ROGjVDSSHDOUHWXUQHGWKHFDVHWRWKHGLVWULFWFRXUW
IDFWVDVZHOODVXSRQWKHODZl,GHPSKDVLVDGGHG,QKLV         IRU D UXOLQJ RQ WKH PRWLRQ WR GLVVROYH  2Q 'HFHPEHU 
PRWLRQ WR LQWHUYHQH %HW]ROG JDYH WKH FRXUW QRWLFH RI KLV     WKHGLVWULFWFRXUWGHQLHGWKHPRWLRQWRGLVVROYHUXOLQJ
LQWHQWLRQWRFKDOOHQJHWKHOHJDOEDVLVIRUWKHLVVXDQFHRIDQ\         RQ ERWK %HW]ROGjV SURFHGXUDO DQG )LUVW $PHQGPHQW
IXWXUHLQMXQFWLRQDJDLQVWKLP+HZDVWKHUHIRUHHQWLWOHGWRD         REMHFWLRQV%HW]ROGjVDSSHDOWKHQUHWXUQHGWRWKLVFRXUW
KHDULQJEHIRUHWKH63,LVVXHG,G
                                                                                               ,,$1$/<6,6
  7KHGLVWULFWFRXUWLQGHQ\LQJ%HW]ROGjVPRWLRQWRGLVVROYH
WKHLQMXQFWLRQKHOGWKDWKLVPRWLRQWRLQWHUYHQHFRQVWLWXWHGD        $ 6WDQGLQJ
KHDULQJ SULRU WR WKH LVVXDQFH RI WKH 36,  :H DUH RI WKH
RSLQLRQKRZHYHUWKDW%HW]ROGjVPRWLRQWRLQWHUYHQHFDQQRW              7KHSODLQWLIIVFRQWHQGWKDW%HW]ROGODFNVVWDQGLQJWRSXUVXH
EHVRFRQVWUXHG%HW]ROGjVPRWLRQWRLQWHUYHQHTXLWHSURSHUO\         WKLVDSSHDOEHFDXVHKHVXIIHUHGQRmLQMXU\LQIDFWlDVDUHVXOW
IRFXVHGRQHVWDEOLVKLQJWKHUHTXLUHPHQWVIRULQWHUYHQWLRQ+H         RI WKH 63,  ,QMXU\ LQ IDFW LV SDUW RI WKH mLUUHGXFLEOH
UHVHUYHGKLVULJKWWRDUJXHWKHPHULWVRIDQ\LQMXQFWLRQLQWKH        FRQVWLWXWLRQDOPLQLPXPRIVWDQGLQJl/XMDQY'HIHQGHUVRI
                                                                       :LOGOLIH86$VHYLGHQFHRI%HW]ROGjV
         &RXQW\6HFXULW\$JHQF\HWDO               1R        1R                  &RXQW\6HFXULW\$JHQF\HWDO             
          Y2KLR'HSjWRI&RPPHUFH                                                                      Y2KLR'HSjWRI&RPPHUFH

DOOHJHGODFNRILQMXU\WKHSODLQWLIIVQRWHWKDW%HW]ROGWHVWLILHG        WHUPVRIWKH63,m,WLVHOHPHQWDU\WKDWRQHLVQRWERXQGE\D
LQKLVGHSRVLWLRQWKDWKHGLGQRWLQWHQGWRSXEOLVKWKHVHFXULW\          MXGJPHQWLQSHUVRQDPUHVXOWLQJIURPOLWLJDWLRQLQZKLFKKHLV
JXDUGVj QDPHV EHFDXVH WKHUH ZRXOG KDYH EHHQ mQR QHZV              QRWGHVLJQDWHGDVDSDUW\RUWRZKLFKKHKDVQRWEHHQPDGHD
YDOXHl LQ GRLQJ VR  7KH 63, KRZHYHU SURKLELWV WKH             SDUW\E\VHUYLFHRISURFHVVl=HQLWK5DGLR&RUSY+D]HOWLQH
GLVFORVXUHRIPXFKPRUHWKDQWKHVHFXULW\JXDUGVjQDPHV$V              5HVHDUFK,QF86KROGLQJWKDW
%HW]ROGSRLQWVRXWLQDQRWKHUSDUWRIKLVGHSRVLWLRQWHVWLPRQ\           DQLQMXQFWLRQ ZDV LPSURSHUEHFDXVHWKHGHIHQGDQWKDGQRW
m>W@KHLQMXQFWLRQLQIDFWVD\VWKDW,DPSURKLELWHGIURPXVLQJ          EHHQ VHUYHG ZLWK SURFHVV  ,Q RUGHU WR REMHFW WR D FRXUWjV
WKHQDPHVDQGRWKHULQIRUPDWLRQZKLFKZRXOGLQFOXGHWKHLU                H[HUFLVHRISHUVRQDOMXULVGLFWLRQLWLVQRORQJHUQHFHVVDU\WR
GDWHVRIKLUHDQGWKHLUVWDWXVl(PSKDVLVDGGHG                      HQWHUDmVSHFLDODSSHDUDQFHl,QVWHDGm>D@GHIHQGDQWPXVW
                                                                          DWWDFN WKH YDOLGLW\ RI VHUYLFH RI SURFHVV SXUVXDQW WR 5XOH
   7KH 63,jV EURDG SURKLELWLRQ RQ WKH GLVFORVXUH RI mRWKHU        El+DLOHY+HQGHUVRQ1DWjO%DQN)G
LQIRUPDWLRQlLQWKHPDWHULDOV%HW]ROGUHFHLYHGIURPWKH2'&               QWK&LU
UHVXOWVLQDFKLOOLQJHIIHFWRQKLVDELOLW\WRSXEOLVKKLVQHZV
DUWLFOHEHFDXVH%HW]ROGPLJKWEHIRXQGLQFRQWHPSWRIFRXUW                 %HW]ROGDWWHPSWHGLQKLVPRWLRQWRLQWHUYHQHWRUHVHUYHKLV
LI KH ZHUH WR GR VR  $V D UHVXOW %HW]ROG KDV VXIIHUHG DQ   ULJKW WR REMHFW WR WKH GLVWULFW FRXUWjV H[HUFLVH RI SHUVRQDO
mLQMXU\LQIDFWlVXIILFLHQWWRJLYHKLPVWDQGLQJWRDSSHDOWKH            MXULVGLFWLRQ  7KLV DWWHPSW KRZHYHU ZDV XQVXFFHVVIXO
752DQG63,6HH&XOLQDU\:RUNHUV8QLRQY'HO3DSD                 EHFDXVHDPRWLRQWRLQWHUYHQHLVIXQGDPHQWDOO\LQFRPSDWLEOH
)GWK&LUSHUFXULDPKROGLQJLQDFDVH            ZLWKDQREMHFWLRQWRSHUVRQDOMXULVGLFWLRQ8QLWHG6WDWHVY
ZKHUHDXQLRQVRXJKWD752WRHQMRLQWKH&DOLIRUQLDDWWRUQH\              2UHJRQ)GQWK&LUKROGLQJ
JHQHUDOIURPHQIRUFLQJDVWDWXWHWKDWZRXOGSUHYHQWWKHXQLRQ             WKDWm>W@KHFRXUWEHORZJDLQHGSHUVRQDOMXULVGLFWLRQRYHU>WKH
IURPGLVWULEXWLQJDKDQGELOOWKDWWKHXQLRQVXIIHUHGDQLQMXU\           GHIHQGDQW@ ZKHQ LW LQWHUYHQHG DV RI ULJKWl &LW\ RI 6DQWD
LQ IDFWDQGWKHUHIRUHKDGVWDQGLQJEHFDXVHRIWKHFKLOOLQJ             &ODUD Y .OHSSH  ) 6XSS   1' &DO 
HIIHFWRQLWVVSHHFKUHVXOWLQJIURPWKHDWWRUQH\JHQHUDOjVOHWWHU         KROGLQJWKDWm>E@\YROXQWDULO\LQWHUYHQLQJLQWKLVDFWLRQXQGHU
WKUHDWHQLQJWRHQIRUFHWKHVWDWXWHDJDLQVWWKHXQLRQ                   5XOH  )5&3 >WKH GHIHQGDQW@ KDV VXEPLWWHG WR WKH
                                                                          MXULVGLFWLRQ RI WKLV FRXUWl  :H WKHUHIRUH FRQFOXGH WKDW
% 7KH752                                                                %HW]ROG KDV ZDLYHG KLV REMHFWLRQV WR WKH GLVWULFW FRXUWjV
                                                                          H[HUFLVHRISHUVRQDOMXULVGLFWLRQRYHUKLP
  7KH752H[SLUHGGD\VDIWHULWZDVLVVXHGRQ)HEUXDU\
 DQG ZDV VXSHUVHGHG E\ WKH LVVXDQFH RI WKH 63, RQ               E    5XOHGRIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH
$SULO    7KXV HYHQ LI WKH 752 ZDV LPSURSHUO\
JUDQWHGWKHLVVXHLVQRZPRRW                                             5XOH G SURYLGHV WKDW DQ LQMXQFWLRQ mLV ELQGLQJ RQO\
                                                                          XSRQ WKH SDUWLHV WR WKH DFWLRQ   l )HG 5 &LY 3 G
& 7KH63,                                                                %HW]ROGEHFDPHDSDUW\ZKHQWKHGLVWULFWFRXUWJUDQWHGKLV
                                                                          PRWLRQWRLQWHUYHQHRQ$SULOWKHVDPHGD\WKDWWKH
            3URFHGXUDOVXIILFLHQF\                                      63,ZDVLVVXHG$VDUHVXOWWKHGLVWULFWFRXUWjVLVVXDQFHRI
                                                                          WKH63,DJDLQVW%HW]ROGGLGQRWFRQWUDYHQH5XOHG
         D     3HUVRQDOMXULVGLFWLRQ
  %HW]ROG DUJXHV WKDW EHFDXVH KH ZDV QHYHU VHUYHG ZLWK
SURFHVV WKH GLVWULFW FRXUW LPSURSHUO\ VXEMHFWHG KLP WR WKH
