           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


 1(2*(1 &25325$7,21               ;
         3ODLQWLII$SSHOODQW       
                                    
                                      1R
             Y                     
                                     !
                                    
 1(2 *(1 6&5((1,1* ,1&           
            'HIHQGDQW$SSHOOHH 
                                   1
        $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW/DQVLQJ
 1Rn5REHUW+ROPHV%HOO&KLHI'LVWULFWsXGJH
                    $UJXHGsDQXDU\
               'HFLGHGDQG)LOHG0DUFK
%HIRUH0$57,1&KLHI&LUFXLWsXGJH*,/0$1&LUFXLW
          sXGJH('081'6'LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('*UDKDP.&UDEWUHH)5$6(575(%,/&2&.
'$9,6 	 '81/$3 /DQVLQJ 0LFKLJDQ IRU $SSHOODQW
.HQQHWK 3 0F.D\ /$: 2)),&(6 2) . 3$75,&.

    
     7KH +RQRUDEOH 1DQF\ * (GPXQGV 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ



                                    
     1HRJHQ&RUSY1HR*HQ6FUHHQLQJ             1R

0F.$< 3LWWVEXUJK 3HQQV\OYDQLD IRU $SSHOOHH
21%5,()*UDKDP.&UDEWUHH0DUN5)R[)5$6(5
75(%,/&2&.'$9,6	'81/$3/DQVLQJ0LFKLJDQIRU
$SSHOODQW  .HQQHWK 3 0F.D\ /$: 2)),&(6 2) .
3$75,&.0F.$<3LWWVEXUJK3HQQV\OYDQLDIRU$SSHOOHH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  521$/'/((*,/0$1&LUFXLWsXGJH,Q$SULORI
1HRJHQ&RUS1HRJHQD0LFKLJDQFRUSRUDWLRQILOHGVXLWLQ
WKH:HVWHUQ'LVWULFWRI0LFKLJDQDJDLQVW1HR*HQ6FUHHQLQJ
,QF 1*6 D 3HQQV\OYDQLD FRUSRUDWLRQ DOOHJLQJ
 WUDGHPDUN LQIULQJHPHQW  IHGHUDO GLOXWLRQ DQG XQIDLU
FRPSHWLWLRQ  YLRODWLRQ RI WKH 0LFKLJDQ &RQVXPHU
3URWHFWLRQ $FW  YLRODWLRQ RI WKH 0LFKLJDQ 3ULFLQJ DQG
$GYHUWLVLQJ$FWDQGXQMXVWHQULFKPHQW7KHGLVWULFWFRXUW
GLVPLVVHG WKH VXLW LQ $XJXVW RI  IRU ODFN RI SHUVRQDO
MXULVGLFWLRQ RYHU 1*6 SXUVXDQW WR 5XOH E RI WKH
)HGHUDO5XOHVRI&LYLO3URFHGXUH1HRJHQKDVDSSHDOHG)RU
WKHUHDVRQVVHWIRUWKEHORZZH5(9(56(WKHMXGJPHQWRI
WKH GLVWULFW FRXUW DQG 5(0$1' WKH FDVH IRU IXUWKHU
SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ
                     ,%$&.*5281'
   1HRJHQLVLQWKHEXVLQHVVRIGHYHORSLQJDQGPDUNHWLQJD
UDQJHRIKHDOWKFDUHIRRGDQGDQLPDOUHODWHGSURGXFWVDQG
VHUYLFHVLQFOXGLQJFHUWDLQGLDJQRVWLFWHVWNLWV,WVSULQFLSDO
SODFHRIEXVLQHVVLVLQ/DQVLQJ0LFKLJDQEXW1HRJHQDOVR
KDV SODFHV RI EXVLQHVV LQ )ORULGD ,OOLQRLV DQG .HQWXFN\
1HRJHQ DOOHJHV WKDW LW KDV XVHG WKH m1HRJHQl QDPH DQG
WUDGHPDUN FRQWLQXRXVO\ DQG H[WHQVLYHO\ LQ LQWHUVWDWH
FRPPHUFHDQGWKDWLWKDVUHJLVWHUHGWKHPDUNZLWKWKH86
3DWHQW DQG 7UDGHPDUN 2IILFH  ,WV ZHEVLWH LV IRXQG DW
ZZZQHRJHQFRP
  1*6 SHUIRUPV GLDJQRVWLF WHVWLQJ RI EORRG VDPSOHV IURP
QHZERUQLQIDQWV$FORVHO\KHOG3HQQV\OYDQLDFRUSRUDWLRQ
    1HRJHQ&RUSY1HR*HQ6FUHHQLQJ              1R       1R         1HRJHQ&RUSY1HR*HQ6FUHHQLQJ             

mWUDGLWLRQDOQRWLRQVRIIDLUSOD\DQGVXEVWDQWLDOMXVWLFHl,QWjO     1*6 KDV LWV VROH SODFH RI EXVLQHVV LQ 3LWWVEXUJK
6KRH86DW                                                $SSUR[LPDWHO\QLQHW\SHUFHQWRIWKHWHVWVWKDW1*6
                                                                       SHUIRUPHG LQ  ZHUH JHQHUDWHG WKURXJK FRQWUDFWV ZLWK
   :HUHFRJQL]HRIFRXUVHWKDWWKLVFDVHFRPHVWRXVLQWKH          KRVSLWDOVDQGJRYHUQPHQWDODJHQFLHVDURXQGWKHZRUOGQRQH
FRQWH[WRIDGLVPLVVDOSXUVXDQWWR5XOHERIWKH)HGHUDO        RIZKLFKZHUHORFDWHGLQ0LFKLJDQ7KHUHPDLQGHURIWKH
5XOHVRI&LYLO3URFHGXUH7KLVPHDQV WKDW DOORIWKHIDFWV          WHVWVSHUIRUPHGE\1*6LQZHUHGRQHDWWKHUHTXHVWRI
VWDWHGDERYHKDYHEHHQWDNHQIURP1HRJHQjVFRPSODLQWDQG              LQGLYLGXDOSK\VLFLDQVRUFRURQHUVZLWKZKRP1*6GLGQRW
WKDWDOORIWKHVHIDFWVKDYHEHHQFRQVWUXHGLQWKHOLJKWPRVW          KDYHDSULRUFRQWUDFW6XFKFXVWRPHUVQRWXQGHUFRQWUDFWFDQ
IDYRUDEOHWR1HRJHQ6HUUDVY)LUVW7HQQ%DQN1DWjO$VVjQ          REWDLQWHVWLQJVHUYLFHVE\WHOHSKRQLQJRUHPDLOLQJ1*6WR
)GWK&LU$IWHUWKHFRPSOHWLRQRI          UHTXHVWLQIRUPDWLRQDQGmILOWHUEORRGFROOHFWLRQIRUPVl1*6
GLVFRYHU\ RQ UHPDQG 1*6 ZLOO WKHUHIRUH UHPDLQ IUHH WR         WKHQPDLOVWKHFROOHFWLRQIRUPWRWKHFXVWRPHUZKRFROOHFWV
IXUWKHU FRQWHVW WKH LVVXH RI SHUVRQDO MXULVGLFWLRQ HLWKHU E\   WKH VDPSOH DQG VHQGV LW EDFN WR WKH FRPSDQ\ LQ D
UHTXHVWLQJDQHYLGHQWLDU\KHDULQJRUE\PRYLQJIRUVXPPDU\             SUHDGGUHVVHGUHWXUQHQYHORSHIRUWHVWLQJ7KHFXVWRPHUFDQ
MXGJPHQWLIVXFKGLVFRYHU\UHYHDOVDPDWHULDOYDULDQFHIURP            WKHQ REWDLQ WKH WHVW UHVXOWV WKURXJK WKH PDLO RU RQ 1*6jV
WKHIDFWVDVVWDWHGLQWKLVRSLQLRQ                                   ZHEVLWH ZLWK D SDVVZRUG SURYLGHG E\ WKH FRPSDQ\
                                                                       &XVWRPHUV SD\ IRU WKH WHVWV E\ PDLOLQJ D FKHFN WR 1*6jV
                     ,,,&21&/86,21                                  3LWWVEXUJK RIILFH  1*6 WHVWHG  EORRG VDPSOHV IURP
                                                                       0LFKLJDQFRURQHUVLQDQGDQWLFLSDWHGDERXWWKHVDPH
  )RUDOORIWKHUHDVRQVVHWIRUWKDERYHZH5(9(56(WKH               QXPEHUIRU,QHDUOLHU\HDUV1*6DOVRUHFHLYHGDQG
MXGJPHQW RI WKH GLVWULFW FRXUW DQG 5(0$1' WKH FDVH IRU        WHVWHG DQ XQGLVFORVHG QXPEHU RI VDPSOHV IURP 0LFKLJDQ
IXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ                      UHVLGHQWV
                                                                         1*6jVRQO\FRQWLQXRXVDGYHUWLVLQJLVWKURXJKLWVZHEVLWH
                                                                       ZZZQHRJHQVFUHHQLQJFRP  7KH ZHEVLWH SURYLGHV
                                                                       LQIRUPDWLRQDERXW1*6jVVHUYLFHVOLVWVWKHHPDLODGGUHVVHV
                                                                       RI SHUVRQQHO DQG DOORZV SURVSHFWLYH FXVWRPHUV WR SULQW
                                                                       EORRGFROOHFWLRQ IRUPV WR EH PDLOHG DORQJ ZLWK  EORRG
                                                                       VDPSOHV WR 3LWWVEXUJK  1*6jV ZHEVLWH LV LQWHUQDWLRQDOO\
                                                                       DFFHVVLEOH  1HRJHQ FODLPV WKDW 1*6jV FRQWDFWV ZLWK
                                                                       0LFKLJDQWKURXJKLWVZHEVLWHDQGLWVDSSUR[LPDWHO\\HDUO\
                                                                       PDLORUGHU WUDQVDFWLRQV ZLWK 0LFKLJDQ FXVWRPHUV VXEMHFW
                                                                       1*6WRWKHMXULVGLFWLRQRIWKH8QLWHG6WDWHV'LVWULFW&RXUWIRU
                                                                       WKH:HVWHUQ'LVWULFWRI0LFKLJDQ
                                                                         %DVHG XSRQ LWV FRQFOXVLRQ WKDW WKH H[HUFLVH RI SHUVRQDO
                                                                       MXULVGLFWLRQRYHU1*6ZRXOGYLRODWHGXHSURFHVVWKHGLVWULFW
                                                                       FRXUW JUDQWHG 1*6jV PRWLRQ WR GLVPLVV SXUVXDQW WR 5XOH
                                                                       ERIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH7KHGLVWULFW
                                                                       FRXUW PDGH LWV GHWHUPLQDWLRQ ZLWKRXW ILUVW FRQGXFWLQJ DQ
                                                                       HYLGHQWLDU\KHDULQJ1HRJHQDSSHDOVWKHGLVPLVVDO%HFDXVH
     1HRJHQ&RUSY1HR*HQ6FUHHQLQJ                1R        1R         1HRJHQ&RUSY1HR*HQ6FUHHQLQJ           

WKHGLVWULFWFRXUWJUDQWHG1*6jVPRWLRQWRGLVPLVVLWGLGQRW            HFRQRPLF LQMXU\ WR 1HRJHQ  6XFK D FDXVDO FRQQHFWLRQ
FRQVLGHU1*6jVPRWLRQWRWUDQVIHUYHQXHRQJURXQGVRIIRUXP               VDWLVILHVWKHmDULVLQJIURPlUHTXLUHPHQWRI0RKDVFR
QRQFRQYHQLHQVSXUVXDQWWR86&D
                                                                            )LQDOO\ 1HRJHQ KDV DOOHJHG VXIILFLHQW IDFWV WR SUHVHQW D
                         ,,$1$/<6,6                                    SULPD IDFLH FDVH UHJDUGLQJ WKH WKLUG 0RKDVFR
                                                                          UHTXLUHPHQWnWKDWmWKHDFWVRIWKHGHIHQGDQWRUFRQVHTXHQFHV
$ 6XEMHFWPDWWHUMXULVGLFWLRQ                                            FDXVHG E\ WKH GHIHQGDQW PXVW KDYH D VXEVWDQWLDO HQRXJK
                                                                          FRQQHFWLRQ ZLWK WKH IRUXP VWDWH WR PDNH WKH H[HUFLVH RI
  7KHGLVWULFWFRXUWKDGVXEMHFWPDWWHUMXULVGLFWLRQRYHUWKLV            MXULVGLFWLRQRYHUWKHGHIHQGDQWUHDVRQDEOHlnEHFDXVH1*6jV
FDVHEDVHGXSRQGLYHUVLW\RIFLWL]HQVKLSSXUVXDQWWR86&             \HDUO\ VDOHV LQ 0LFKLJDQ FRQVWLWXWH D mFRQWLQXRXV DQG
$OWKRXJKWKHGLVWULFWFRXUWDOVRKDGVXEMHFWPDWWHU              V\VWHPDWLFlSDUWRILWVEXVLQHVV,G,QWjO6KRH86DW
MXULVGLFWLRQRYHUWKHIHGHUDOWUDGHPDUNGLOXWLRQDQGXQIDLU             1*6DQWLFLSDWHVIURP\HDUWR\HDUWKDWLWZLOOFRQGXFWD
FRPSHWLWLRQ FODLPV SXUVXDQW WR  86&   DQG              JLYHQOHYHORIVDOHVLQ0LFKLJDQ,WFRQGXFWHGWHVWVIRU
VXSSOHPHQWDOMXULVGLFWLRQRYHUWKHVWDWHODZFODLPVSXUVXDQW              0LFKLJDQFXVWRPHUVLQDQGSUHGLFWHGDVLPLODUQXPEHU
WR86&ERWKWKHSDUWLHVDQGWKHGLVWULFWFRXUW              IRU$OWKRXJK1*6jVWHVWVIRULQGLYLGXDOFXVWRPHUVGR
KDYHWUHDWHGWKLVFDVHDVWKRXJKMXULVGLFWLRQZHUHEDVHGVROHO\           QRWUHSUHVHQWmFRQWLQXLQJUHODWLRQVKLSVDQGREOLJDWLRQVlZLWK
RQGLYHUVLW\RIFLWL]HQVKLS:HZLOOWKHUHIRUHGRWKHVDPHIRU           WKRVHSDUWLFXODUFXVWRPHUVLWVSUHGLFWDEOH\HDUO\EXVLQHVVLQ
WKHSXUSRVHVRIWKLVDSSHDO                                              0LFKLJDQGRHVUHSUHVHQWVXFKDFRQWLQXLQJUHODWLRQVKLSZLWK
                                                                          WKHVWDWHRYHUDOO
% %XUGHQRISURRI
                                                                             1*6jVFRQWDFWZLWK0LFKLJDQFXVWRPHUVWKURXJKWKHPDLO
  $VWKHSODLQWLII1HRJHQKDVWKHEXUGHQRIHVWDEOLVKLQJWKH             DQGWKHZLUHVLVVLJQLILFDQWEHFDXVHLWFRQVWLWXWHVWKHGRLQJRI
GLVWULFWFRXUWjVSHUVRQDOMXULVGLFWLRQRYHU1*61DWLRQZLGH              EXVLQHVV WKHUH UDWKHU WKDQ VLPSO\ WKH H[FKDQJH RI
0XWjO,QV&RY7U\J,QWjO,QV&R/WG)G             LQIRUPDWLRQ6LIHUVY+RUHQ1:G0LFK
WK&LU%HFDXVHWKHGLVWULFWFRXUWGLGQRWFRQGXFWDQ           KROGLQJ WKDW DQ ,OOLQRLV SURIHVVLRQDO FRUSRUDWLRQ KDG
HYLGHQWLDU\KHDULQJRQWKHLVVXHRISHUVRQDOMXULVGLFWLRQ LQ             mWUDQVDFWHG EXVLQHVVl LQ 0LFKLJDQ WKURXJK LWV PDLO DQG
FRQVLGHULQJ 1*6jV PRWLRQ WR GLVPLVV SXUVXDQW WR                     WHOHSKRQHFRQWDFWVZLWK0LFKLJDQUHVLGHQWV&I5H\QROGVY
5XOH E RI WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH            ,QWjO$PDWHXU$WKOHWLF)HGjQ)GWK&LU
1HRJHQ mQHHG RQO\ PDNH D SULPD IDFLH VKRZLQJ RI                   KROGLQJWKDWWKHGHIHQGDQWjVFRQWDFWZLWK2KLRWKURXJK
MXULVGLFWLRQl&RPSXVHUYH,QFY3DWWHUVRQ)G               OHWWHUVDQGSKRQHFDOOVZDVLQVXIILFLHQWWRVXSSRUWMXULVGLFWLRQ
 WK &LU   1HRJHQ FDQ PHHW WKLV EXUGHQ E\           EHFDXVHLWZDVRIDVXSHUILFLDOTXDOLW\
mHVWDEOLVKLQJZLWKUHDVRQDEOHSDUWLFXODULW\VXIILFLHQWFRQWDFWV
EHWZHHQ>1*6@DQGWKHIRUXPVWDWHWRVXSSRUWMXULVGLFWLRQl                 %HFDXVH 1*6 NQHZ WKDW LW ZDV GRLQJ EXVLQHVV ZLWK
3URYLGHQW1DWjO%DQNY&DOLIRUQLD)HG6DYLQJV/RDQ$VVjQ               0LFKLJDQ FXVWRPHUV DQG SHUIRUPHG SDUW RI LWV VHUYLFHV LQ
)GG&LU8QGHUWKHVHFLUFXPVWDQFHV             0LFKLJDQE\PDLOLQJWHVWUHVXOWVWKHUHDQGSURYLGLQJVSHFLDO
WKLVFRXUWZLOOQRWFRQVLGHUIDFWVSURIIHUHGE\WKHGHIHQGDQW             SDVVZRUGV WR 0LFKLJDQ FXVWRPHUV 1*6 FRXOG UHDVRQDEO\
WKDW FRQIOLFW ZLWK WKRVH RIIHUHG E\ WKH SODLQWLII  6HUUDV Y   DQWLFLSDWHEHLQJKDOHGLQWRDFRXUWLQ0LFKLJDQ1HRJHQKDV
)LUVW7HQQ%DQN1DWjO$VVjQ)GWK&LU               WKHUHIRUH RYHUFRPH 1*6jV GXH SURFHVV FKDOOHQJH E\
DQGZLOOFRQVWUXHWKHIDFWVLQWKHOLJKWPRVWIDYRUDEOH            HVWDEOLVKLQJDSULPDIDFLHFDVHWKDWWKHH[HUFLVHRISHUVRQDO
WRWKHQRQPRYLQJSDUW\LQUHYLHZLQJDGLVPLVVDOSXUVXDQWWR               MXULVGLFWLRQRYHU1*6E\DFRXUWLQ0LFKLJDQGRHVQRWRIIHQG
5XOHE,G
    1HRJHQ&RUSY1HR*HQ6FUHHQLQJ              1R       1R         1HRJHQ&RUSY1HR*HQ6FUHHQLQJ               

   7KHGLVWULFWFRXUWDOVRHUUHGLQFRQFOXGLQJWKDWWKH\HDUO\      & 7KHGLVWULFW FRXUWHUUHGLQFRQFOXGLQJWKDW1HRJHQ
FRQWUDFWV ZLWK 0LFKLJDQ FXVWRPHUV ZHUH LQVXIILFLHQW WR              IDLOHG WR SUHVHQW D SULPD IDFLH FDVH RI SHUVRQDO
HVWDEOLVK SHUVRQDO MXULVGLFWLRQ RYHU 1*6 EHFDXVH WKH\               MXULVGLFWLRQRYHU1*6
UHSUHVHQWHG DQ LQVLJQLILFDQW SHUFHQWDJH RI 1*6jV RYHUDOO
EXVLQHVV  7KH SURSHU WHVW IRU SHUVRQDO MXULVGLFWLRQ LV QRW        6WDQGDUGRIUHYLHZ
EDVHGRQDmSHUFHQWDJHRIEXVLQHVVlDQDO\VLVDVFRQWHQGHGE\
1*6EXWUDWKHURQZKHWKHUWKHDEVROXWHDPRXQWRIEXVLQHVV               :H UHYLHZ GH QRYR D GLVPLVVDO IRU ODFN RI SHUVRQDO
FRQGXFWHGE\1*6LQ0LFKLJDQUHSUHVHQWVVRPHWKLQJPRUH                 MXULVGLFWLRQSXUVXDQWWR5XOHERIWKH)HGHUDO5XOHVRI
WKDQ mUDQGRP IRUWXLWRXV RU DWWHQXDWHG FRQWDFWVl ZLWK WKH      &LYLO3URFHGXUH1DWLRQZLGH0XWjO,QV&R)GDW
VWDWH%XUJHU.LQJ86DWLQWHUQDOTXRWDWLRQPDUNV         $ IHGHUDO FRXUWjV H[HUFLVH RI SHUVRQDO MXULVGLFWLRQ LQ D
RPLWWHG                                                              GLYHUVLW\RIFLWL]HQVKLSFDVHPXVWEHERWKDXWKRUL]HGE\
                                                                       WKHODZRIWKHVWDWHLQZKLFKLWVLWVDQGLQDFFRUGDQFHZLWK
  1HRJHQjVDOOHJDWLRQVFRQVWLWXWHDSULPDIDFLHVKRZLQJWKDW           WKH 'XH 3URFHVV &ODXVH RI WKH )RXUWHHQWK $PHQGPHQW
1*6jV FRQWDFWV ZLWK 0LFKLJDQ FXVWRPHUV DUH PRUH WKDQ            5H\QROGVY,QWjO$PDWHXU$WKOHWLF)HGjQ)G
UDQGRP RU IRUWXLWRXV HYHQWV  $OWKRXJK FXVWRPHUV IURP           WK&LU
0LFKLJDQFRQWDFWHG1*6DQGQRWWKHRWKHUZD\DURXQG1*6
FRXOG QRW PDLO WHVW UHVXOWV WR DQG DFFHSW SD\PHQW IURP             1HRJHQ KDV SUHVHQWHG D SULPD IDFLH FDVH WKDW
FXVWRPHUV ZLWK 0LFKLJDQ DGGUHVVHV ZLWKRXW LQWHQWLRQDOO\                  0LFKLJDQjV mORQJDUPl VWDWXWH DXWKRUL]HV OLPLWHG
FKRRVLQJWRFRQGXFWEXVLQHVVLQ0LFKLJDQ7KLVHVWDEOLVKHV                   SHUVRQDOMXULVGLFWLRQRYHU1*6
WKDW1*6FKRVHWRFRQWUDFWZLWKFXVWRPHUVIURP0LFKLJDQ
$GGLWLRQDOO\DSDUWRI1*6jVVHUYLFHLVWKHSDFNDJLQJRIWKH             0LFKLJDQjV mORQJDUPl VWDWXWH H[WHQGV mOLPLWHGl
UHVXOWVRIWKHWHVWVWKDWLWSHUIRUPV:KHQ1*6PDLOVWKHVH           MXULVGLFWLRQRYHUQRQUHVLGHQWFRUSRUDWLRQVSXUVXDQWWR0LFK
WHVW UHVXOWV WR LWV 0LFKLJDQ FXVWRPHUV RU VHQGV WKHP D       &RPS/DZVDQGmJHQHUDOlMXULVGLFWLRQSXUVXDQW
SDVVZRUGWREHXVHGLQWHUDFWLYHO\RQLWVZHEVLWH1*6UHDFKHV          WR 0LFK &RPS /DZV    /LPLWHG MXULVGLFWLRQ
RXWWR0LFKLJDQWRSHUIRUPLWVVHUYLFHVWKHUH1HRJHQKDV             H[WHQGVRQO\WRFODLPVDULVLQJIURPWKHGHIHQGDQWjVDFWLYLWLHV
WKHUHIRUHDOOHJHGIDFWVZKLFKZKHQYLHZHGLQWKHOLJKWPRVW           WKDW ZHUH HLWKHU ZLWKLQ 0LFKLJDQ RU KDG DQ LQVWDWH HIIHFW
IDYRUDEOHWR1HRJHQVXSSRUWDILQGLQJWKDW1*6SXUSRVHIXOO\           7KLUG1DWjO%DQNLQ1DVKYLOOHY:HGJH*URXS,QF)G
DYDLOHGLWVHOIRIWKHSULYLOHJHRIGRLQJEXVLQHVVLQ0LFKLJDQ         WK&LU*HQHUDOMXULVGLFWLRQRQWKHRWKHU
                                                                       KDQGHQDEOHVDFRXUWLQ0LFKLJDQWRH[HUFLVHMXULVGLFWLRQRYHU
  7KH VHFRQG 0RKDVFR UHTXLUHPHQW IRU WKH H[HUFLVH RI            D FRUSRUDWLRQ UHJDUGOHVV RI ZKHWKHU WKH FODLP DW LVVXH LV
SHUVRQDO MXULVGLFWLRQnWKDW mWKH FDXVH RI DFWLRQ PXVW DULVH      UHODWHGWRLWVDFWLYLWLHVLQWKHVWDWHRUKDVDQLQVWDWHHIIHFW,G
IURPWKHGHIHQGDQWjVDFWLYLWLHV>LQWKHIRUXPVWDWH@lnLVDOVR
VDWLVILHG LQ WKH SUHVHQW FDVH  0RKDVFR  )G DW       0LFK &RPS /DZV   H[WHQGV OLPLWHG SHUVRQDO
1HRJHQ FODLPV WKDW WKH XVH RI 1*6jV WUDGHQDPH RQ LWV          MXULVGLFWLRQRYHUDQRQUHVLGHQWFRUSRUDWLRQLQFODLPVmDULVLQJ
ZHEVLWH DQG LWV EXVLQHVV FRQWDFWV ZLWK 0LFKLJDQ UHVLGHQWV       RXW RI WKH DFW RU DFWV ZKLFK FUHDWH DQ\ RI WKH IROORZLQJ
XQGHUWKDWQDPHKDYHFDXVHGDYDULHW\RIHFRQRPLFKDUPVLQ             UHODWLRQVKLSVlLQFOXGLQJm>W@KHWUDQVDFWLRQRIDQ\EXVLQHVV
0LFKLJDQ&RQVWUXLQJWKHIDFWVLQWKHOLJKWPRVWIDYRUDEOHWR         ZLWKLQWKHVWDWHlXQGHUm>W@KHGRLQJRUFDXVLQJ
1HRJHQ DV ZH PXVW IRU WKH SXUSRVHV RI WKLV DSSHDO LW LV   RIDQ\DFWWREHGRQHRUFRQVHTXHQFHVWRRFFXULQWKHVWDWH
SRVVLEOH WKDW 1*6jV DFWLYLWLHV LQ 0LFKLJDQ KDYH FDXVHG          UHVXOWLQJLQDQDFWLRQIRUWRUWlXQGHUDQGWKH
                                                                       m>H@QWHULQJLQWRDFRQWUDFWIRUVHUYLFHVWREHSHUIRUPHGRUIRU
     1HRJHQ&RUSY1HR*HQ6FUHHQLQJ            1R      1R         1HRJHQ&RUSY1HR*HQ6FUHHQLQJ             

PDWHULDOVWREHIXUQLVKHGLQWKHVWDWHE\WKHGHIHQGDQWlXQGHU        7KH GLVWULFW FRXUW GLG QRW FRQVLGHU 1*6jV  \HDUO\
                                                      FRQWUDFWV ZLWK 0LFKLJDQ FXVWRPHUV WR EH mSXUSRVHIXO
                                                                    DYDLOPHQWl  ,Q VR GRLQJ LW SURSHUO\ UHMHFWHG 1HRJHQjV
   7KH mWUDQVDFWLRQ RI DQ\ EXVLQHVVl QHFHVVDU\ IRU OLPLWHG   FRQWHQWLRQ WKDW 1*6 mPXVW PDQLIHVW D GHVLUH WR QRW GR
SHUVRQDOMXULVGLFWLRQXQGHULVHVWDEOLVKHGE\mWKH     EXVLQHVVLQ0LFKLJDQl5DWKHU mµSXUSRVHIXODYDLOPHQWjLV
VOLJKWHVWDFWRIEXVLQHVVLQ0LFKLJDQl/DQLHUY$P%GRI       VRPHWKLQJDNLQWRDGHOLEHUDWHXQGHUWDNLQJWRGRRUFDXVHDQ
(QGRGRQWLFV)GWK&LUFLWLQJ6LIHUV      DFWRUWKLQJWREHGRQHLQ0LFKLJDQRUFRQGXFWZKLFKFDQEH
Y+RUHQ1:GQ0LFK1HRJHQ            SURSHUO\UHJDUGHGDVDSULPHJHQHUDWLQJFDXVHRIWKHHIIHFWV
KDVSUHVHQWHGDSULPDIDFLHFDVHWKDW1*6WUDQVDFWHGEXVLQHVV       UHVXOWLQJ LQ 0LFKLJDQ VRPHWKLQJ PRUH WKDQ D SDVVLYH
LQ 0LFKLJDQ ZKHQ LW DFFHSWHG EORRG IRU WHVWLQJ IURP         DYDLOPHQWRI0LFKLJDQRSSRUWXQLWLHVl.KDODI1:GDW
0LFKLJDQ PDLOHG WKH WHVW UHVXOWV WR 0LFKLJDQ PDGH WKH     
UHVXOWVDFFHVVLEOHWRLWV0LFKLJDQFXVWRPHUVRQLWVZHEVLWH
DQG DFFHSWHG SD\PHQW WKURXJK WKH PDLO IURP 0LFKLJDQ           &RQFOXGLQJWKDW1*6jVFRQWDFWVZHUHSDVVLYHWKHGLVWULFW
/DQLHU)GDWKROGLQJWKDWDQ,OOLQRLVSURIHVVLRQDO     FRXUWFRPSDUHGWKHPWRWKHDFWLRQVRIWKHGHIHQGDQWLQ.HUU\
FRUSRUDWLRQ KDG mWUDQVDFWHG EXVLQHVVl LQ 0LFKLJDQ XQGHU       6WHHO ,QF Y 3DUDJRQ ,QGXV ,QF  )G  WK &LU
  WKURXJK LWV PDLO DQG WHOHSKRQH FRQWDFWV ZLWK     ,Q .HUU\ 6WHHO WKH GHIHQGDQW DQ 2NODKRPD
0LFKLJDQUHVLGHQWV                                               FRUSRUDWLRQ UHFHLYHG XQVROLFLWHG WHOHSKRQH FDOOV IURP WKH
                                                                    SODLQWLII D 0LFKLJDQ FRUSRUDWLRQ RIIHULQJ WR VHOO WKH
  7KHmDULVLQJRXWRIlUHTXLUHPHQWRILVVDWLVILHG        GHIHQGDQW D ODUJH TXDQWLW\ RI VWHHO FRLOV  7KH GHIHQGDQW
EHFDXVH WKH DOOHJHG HFRQRPLF KDUP DQG WUDGHPDUN               DJUHHGWRSXUFKDVHWKHFRLOV$IWHUWKHGHIHQGDQWIDLOHGWR
LQIULQJHPHQW WKDW IRUP WKH EDVLV RI 1HRJHQjV VXLW ZHUH      SD\ IRU WKHP WKH SODLQWLII WKHQ DWWHPSWHG WR EULQJ VXLW LQ
GLUHFWO\UHODWHGWR1*6jVWUDQVDFWLRQRIEXVLQHVVLQ0LFKLJDQ      0LFKLJDQ7KHGLVWULFWFRXUWGLVPLVVHGWKHFRPSODLQWIRUODFN
,Q)OLJKW'HYLFHV&RUSY9DQ'XVHQ$LU,QF)G       RISHUVRQDOMXULVGLFWLRQ,QDIILUPLQJWKHGLVPLVVDOWKLVFRXUW
 WK &LU  ILQGLQJ OLPLWHG SHUVRQDO MXULVGLFWLRQ   FRQFOXGHG WKDW WKH DFFHSWDQFH RI D VLQJOH XQVROLFLWHG VDOHV
XQGHU2KLRjVVLPLODUORQJDUPVWDWXWHZKHUHWKHDFWVIRUPLQJ        RIIHU GLG QRW FRQVWLWXWH WKH GHIHQGDQWjV mUHDFKLQJ RXWl WR
WKHEDVLVIRUWKHGHIHQGDQWjVDOOHJHGO\WRUWLRXVFRQGXFWZHUH       0LFKLJDQ WR HVWDEOLVK mFRQWLQXLQJ UHODWLRQVKLSV DQG
mPDGHSRVVLEOHlE\WKHGHIHQGDQWjVWUDQVDFWLRQRIEXVLQHVVLQ       REOLJDWLRQVlWKHUH,GDW
2KLR9LHZLQJWKHDOOHJDWLRQVLQWKHOLJKWPRVWIDYRUDEOHWR
1HRJHQ WKH HFRQRPLF KDUP RI ZKLFK LW FRPSODLQV FDQ EH       .HUU\ 6WHHO KRZHYHU LV UHDGLO\ GLVWLQJXLVKHG IURP WKH
FRQVWUXHGDVUHVXOWLQJIURP1*6jVFRQGXFWRIEXVLQHVVZLWK          SUHVHQWFDVH8QOLNHWKHRQHWLPHXQOLNHO\WREHUHSHDWHG
0LFKLJDQUHVLGHQWVRYHUWKHZLUHVWKURXJKWKHPDLODQGE\         0LFKLJDQWUDQVDFWLRQH[HFXWHGE\WKH2NODKRPDGHIHQGDQWLQ
XVHRIWKH,QWHUQHW                                                .HUU\6WHHO1*6UHDVRQDEO\H[SHFWVWRFRQGXFWDJLYHQOHYHO
                                                                    RIEXVLQHVVLQ0LFKLJDQ\HDUDIWHU\HDU7KXV1HRJHQKDV
   1HRJHQKDVDOVRSUHVHQWHGDSULPDIDFLHFDVHWKDWOLPLWHG        SUHVHQWHGDSULPDIDFLHFDVHWKDW1*6KDVVKRZQLWVLQWHQWWR
MXULVGLFWLRQH[LVWVRYHU1*6XQGHUEDVHGXSRQ         PDLQWDLQ mFRQWLQXLQJ UHODWLRQVKLSV DQG REOLJDWLRQVl LQ
1HRJHQjV DOOHJDWLRQ WKDW WKH XVH RI 1*6jV ZHEVLWH DQG       0LFKLJDQ %XUJHU .LQJ   86 DW  VXFK WKDW LWV
WUDGHQDPHLQGHDOLQJZLWKLWV0LFKLJDQFXVWRPHUVKDVFDXVHG         DFWLYLWLHVWKHUHDUHmFRQWLQXRXVDQGV\VWHPDWLFl,QWjO6KRH
DQDGYHUVHHFRQRPLFHIIHFWXSRQ1HRJHQLQ0LFKLJDQ$VWKH         86DW
GLVWULFW FRXUW UHFRJQL]HG m>W@KH ODQJXDJH RI WKH 0LFKLJDQ
ORQJDUP VWDWXWH OLNHO\ LV EURDG HQRXJK WR HQFRPSDVV WKH
    1HRJHQ&RUSY1HR*HQ6FUHHQLQJ               1R       1R         1HRJHQ&RUSY1HR*HQ6FUHHQLQJ              

WKH SODFLQJ RI D SURGXFW LQ WKH VWUHDP RI FRPPHUFH DQG       'HIHQGDQWjVDFWLYLW\l,QDGGLWLRQ1HRJHQKDVSUHVHQWHGD
KROGLQJWKDWD0LVVRXULFOXEWKDWPDLQWDLQHGDQRQLQWHUDFWLYH           SULPD IDFLH FDVH WKDW OLPLWHG MXULVGLFWLRQ H[LVWV XQGHU
ZHEVLWHDFFHVVLEOHLQ1HZ<RUNGLGQRWSXUSRVHO\DYDLOLWVHOI             EHFDXVH 1*6jV EORRGWHVW WUDQVDFWLRQV ZLWK
RI1HZ<RUNODZ                                                       0LFKLJDQ UHVLGHQWV FRQVWLWXWH mHQWHULQJ LQWR D FRQWUDFW IRU
                                                                        VHUYLFHVWREHSHUIRUPHGRUIRUPDWHULDOVWREHIXUQLVKHGLQ
  ,QWKHSUHVHQWFDVH1*6jVZHEVLWHFRQVLVWVSULPDULO\RI              WKH VWDWH E\ WKH GHIHQGDQWl  3DUW RI 1*6jV VHUYLFH LV WKH
SDVVLYHO\SRVWHGLQIRUPDWLRQ7KHZHEVLWHDGYHUWLVHV1*6jV             SDFNDJLQJ RI WKH LQIRUPDWLRQ UHYHDOHG E\ WKH WHVWV  :KHQ
VHUYLFHV DQG SURYLGHV EDVLF FRQWDFW LQIRUPDWLRQ  6HYHUDO        1*6SURYLGHGSDVVZRUGVWR0LFKLJDQFXVWRPHUVRUPDLOHG
DVSHFWV RI WKH ZHEVLWH KRZHYHU VXSSRUW D ILQGLQJ RI           WKHP WKH WHVW UHVXOWV WKLV FRQVWLWXWHG WKH SHUIRUPDQFH RI
SXUSRVHIXO DYDLOPHQW  :KHQ 0LFKLJDQ UHVLGHQWV SXUFKDVH           VHUYLFHVDQGWKHIXUQLVKLQJRIPDWHULDOVLQWKHVWDWHZLWKLQWKH
1*6jV VHUYLFHV IRU H[DPSOH 1*6 SURYLGHV WKHP ZLWK              PHDQLQJRI
SDVVZRUGV WR DFFHVV WKHLU WHVW UHVXOWV RQ WKH ZHEVLWH IURP
0LFKLJDQ7KHJUDQWLQJRISDVVZRUGVWR0LFKLJDQUHVLGHQWV                 ,QRUGHUWREHVXEMHFWWRJHQHUDOMXULVGLFWLRQLQ0LFKLJDQD
DVSDUWRIDFRQWUDFWIRU1*6jVVHUYLFHVLVDQLQWHUDFWLYHXVDJH        QRQFRQVHQWLQJQRQUHVLGHQWFRUSRUDWLRQVXFKDV1*6PXVW
VKRZLQJWKDW1*6KDVLQWHQWLRQDOO\UHDFKHGRXWWR0LFKLJDQ              KDYH FDUULHG RQ mD FRQWLQXRXV DQG V\VWHPDWLF SDUW RI LWV
FXVWRPHUV DQG HQDEOHG WKHP WR XVH 1*6jV VHUYLFHV IURP           JHQHUDO EXVLQHVVl ZLWKLQ 0LFKLJDQ  0LFK &RPS /DZV
0LFKLJDQ  $QRWKHU DVSHFW RI WKH ZHEVLWH WKDW VXSSRUWV             :H GHFOLQH WR GHFLGH WKH EURDGHU LVVXH RI
SXUSRVHIXODYDLOPHQWHYHQLISDVVLYHLVWKHIDFWWKDW1*6             ZKHWKHUJHQHUDOMXULVGLFWLRQH[LVWVXQGHUWKHIDFWVRIWKLVFDVH
KROGV LWVHOI RXW DV ZHOFRPLQJ 0LFKLJDQ EXVLQHVV  2Q WKH       KRZHYHUEHFDXVH1HRJHQKDVSUHVHQWHGDSULPDIDFLHFDVH
ZHEVLWH 1*6 VWDWHV WKDW LW ZLOO mGR D JHQHWLF QHZERUQ         WKDWOLPLWHGMXULVGLFWLRQLVSUHVHQW
VFUHHQLQJ WHVW IRU DQ\ SDUHQW LQ DQ\ VWDWHl DQG HQDEOHV
0LFKLJDQUHVLGHQWVWRSULQWRXWWKHWHVWLQJIRUPWRVHQGDORQJ               7KH GLVWULFW FRXUW HUUHG LQ FRQFOXGLQJ WKDW GXH
ZLWKSD\PHQW1*6DOVRSRVWVRQLWVZHEVLWHDFKDUWVKRZLQJ                   SURFHVVZRXOGEHYLRODWHGE\0LFKLJDQjVH[HUFLVHRI
WKHmUHVXOWVRIVFUHHQLQJLQIDQWGHDWKVZLWKXQNQRZQ                     OLPLWHGSHUVRQDOMXULVGLFWLRQRYHU1*6
FDXVHl LQFOXGLQJ D JHRJUDSKLFDO EUHDNGRZQ RI GDWD WKDW
H[SUHVVO\LQFOXGHV0LFKLJDQ7KLVFKDUWVXJJHVWVWKDW1*6                 $OWKRXJK0LFKLJDQjVORQJDUPVWDWXWHDXWKRUL]HVSHUVRQDO
KDVXVHGGDWDFROOHFWHGIURP0LFKLJDQUHVLGHQWVWRFRPSOHWH             MXULVGLFWLRQRYHU1*6DFRXUWLQ0LFKLJDQFDQQRWH[HUFLVHLWV
WKLVVWXG\DQGKROGVLWVHOIRXWDVKDYLQJGRQHVR                  SHUVRQDOMXULVGLFWLRQLQYLRODWLRQRI1*6jVFRQVWLWXWLRQDOULJKW
                                                                        WRGXHSURFHVV,QRUGHUWRVXUYLYH1*6jVPRWLRQWRGLVPLVV
   :KHWKHU 1*6jV ZHEVLWH DORQH ZRXOG EH VXIILFLHQW WR            1HRJHQZDVUHTXLUHGWRSUHVHQWDSULPDIDFLHFDVHWKDWWKH
VXVWDLQSHUVRQDOMXULVGLFWLRQLQ0LFKLJDQKRZHYHULVDFORVH          GLVWULFW FRXUWjV H[HUFLVH RI SHUVRQDO MXULVGLFWLRQ ZRXOG QRW
TXHVWLRQ WKDW QHHG QRW EH GHFLGHG LQ WKLV DSSHDO  7KLV LV   RIIHQGGXHSURFHVV&RPSXVHUYH,QFY3DWWHUVRQ)G
EHFDXVH16*jVZHEVLWHLVQRWLWVRQO\FRQWDFWZLWKWKHVWDWH           WK&LU1HRJHQPXVWWKHUHIRUHHVWDEOLVK
7KH ZHEVLWH PXVW EH FRQVLGHUHG DORQJVLGH 1*6jV RWKHU             ZLWKUHDVRQDEOHSDUWLFXODULW\VXIILFLHQWmPLQLPXPFRQWDFWVl
LQWHUDFWLRQV ZLWK 0LFKLJDQ UHVLGHQWV  0RVW VLJQLILFDQWO\        ZLWK0LFKLJDQVRWKDWWKHH[HUFLVHRIMXULVGLFWLRQRYHU1*6
ZKHQSRWHQWLDOFXVWRPHUVIURP0LFKLJDQKDYHFRQWDFWHG1*6               ZRXOG QRW RIIHQG mWUDGLWLRQDO QRWLRQV RI IDLU SOD\ DQG
WRSXUFKDVHLWVVHUYLFHV1*6KDVZHOFRPHGWKHLULQGLYLGXDO             VXEVWDQWLDOMXVWLFHl,QWjO6KRHY:DVKLQJWRQ86
EXVLQHVVRQDUHJXODUEDVLV                                            
                                                                          7KH PLQLPXPFRQWDFWV UHTXLUHPHQW LV PHW LI 1*6
                                                                        mSXUSRVHO\ DYDLO>HG@ LWVHOI RI WKH SULYLOHJH RI FRQGXFWLQJ
      1HRJHQ&RUSY1HR*HQ6FUHHQLQJ                1R      1R         1HRJHQ&RUSY1HR*HQ6FUHHQLQJ              

DFWLYLWLHVZLWKLQWKHIRUXP6WDWHl+DQVRQY'HQFNOD               SXUSRVHIXO DYDLOPHQW LV VRPHWKLQJ PRUH WKDQ D mSDVVLYH
86     m3XUSRVHIXO DYDLOPHQWl WKH                DYDLOPHQWRI0LFKLJDQRSSRUWXQLWLHVl1HRJHQKRZHYHU
mFRQVWLWXWLRQDOWRXFKVWRQHlRISHUVRQDOMXULVGLFWLRQLVSUHVHQW         DUJXHVWKDW1*6mSXUSRVHIXOO\DYDLOHGlLWVHOIRIWKHSULYLOHJH
ZKHUH WKH GHIHQGDQWjV FRQWDFWV ZLWK WKH IRUXP VWDWH               RIDFWLQJLQ0LFKLJDQE\PDLQWDLQLQJDQmLQWHUDFWLYHlZHEVLWH
mSUR[LPDWHO\UHVXOWIURPDFWLRQVE\WKHGHIHQGDQWKLPVHOIWKDW           UHVSRQGLQJ WR EXVLQHVV LQTXLULHV IURP 0LFKLJDQ UHVLGHQWV
FUHDWH D µVXEVWDQWLDO FRQQHFWLRQj ZLWK WKH IRUXP 6WDWHl          PDLOLQJ FRPSOHWHG WHVW UHVXOWV WR 0LFKLJDQ FXVWRPHUV DQG
%XUJHU.LQJ&RUSY5XG]HZLF]86                 DFFHSWLQJSD\PHQWE\PDLOIURPWKHVHFXVWRPHUV
HPSKDVLVLQRULJLQDODQGZKHUHWKHGHIHQGDQWjVFRQGXFW
DQG FRQQHFWLRQ ZLWK WKH IRUXP DUH VXFK WKDW KH mµVKRXOG           $GHIHQGDQWSXUSRVHIXOO\DYDLOVLWVHOIRIWKHSULYLOHJHRI
UHDVRQDEO\DQWLFLSDWHEHLQJKDOHGLQWRFRXUWWKHUHjl,GDW            DFWLQJ LQ D VWDWH WKURXJK LWV ZHEVLWH LI WKH ZHEVLWH LV
TXRWLQJ:RUOG:LGH9RONVZDJHQ&RUSY:RRGVRQ                 LQWHUDFWLYH WR D GHJUHH WKDW UHYHDOV VSHFLILFDOO\ LQWHQGHG
86     m7KLV µSXUSRVHIXO DYDLOPHQWj              LQWHUDFWLRQ ZLWK UHVLGHQWV RI WKH VWDWH  =LSSR 0IJ &R Y
UHTXLUHPHQWHQVXUHVWKDWDGHIHQGDQWZLOOQRWEHKDOHGLQWRD            =LSSR 'RW &RP ,QF  ) 6XSS   :' 3D
MXULVGLFWLRQ VROHO\ DV D UHVXOW RI µUDQGRPj µIRUWXLWRXVj RU     XVLQJ D mVOLGLQJ VFDOHl RI LQWHUDFWLYLW\ WR LGHQWLI\
µDWWHQXDWHGjFRQWDFWVRURIWKHµXQLODWHUDODFWLYLW\RIDQRWKHU         ,QWHUQHW DFWLYLW\ WKDW FRQVWLWXWHV SXUSRVHIXO DYDLOPHQW  ,Q
SDUW\ RU DWKLUGSHUVRQjl%XUJHU.LQJ&RUS86DW             =LSSRWKHGLVWULFWFRXUWKHOGWKDWWKHGHIHQGDQWPDQLIHVWHGLWV
LQWHUQDOFLWDWLRQRPLWWHG                                        SXUSRVHIXO DYDLOPHQW RI WKH SULYLOHJH RI DFWLQJ LQ
                                                                         3HQQV\OYDQLDZKHQLWmUHSHDWHGO\DQGFRQVFLRXVO\FKRVHWR
   7KLVFRXUWKDVGLVWLOOHGWKHVHGXHSURFHVVUHTXLUHPHQWVLQWR          SURFHVV 3HQQV\OYDQLD UHVLGHQWVj DSSOLFDWLRQV DQG WR DVVLJQ
DWKUHHSDUWWHVW,QRUGHUIRUDFRXUWWRDVVHUWOLPLWHGSHUVRQDO      WKHPSDVVZRUGVlNQRZLQJWKDWWKH UHVXOWRIWKHVH,QWHUQHW
MXULVGLFWLRQRYHUDQRXWRIVWDWHGHIHQGDQWWKHIROORZLQJWKUHH         FRQWDFWV ZRXOG EH WR SHUIRUP VHUYLFHV IRU 3HQQV\OYDQLD
FULWHULDPXVWEHPHW                                                   FXVWRPHUV LQ SDUW WKURXJK WKH WUDQVPLVVLRQ RI HOHFWURQLF
                                                                         PHVVDJHV WR 3HQQV\OYDQLD ,G  DW   6XFK LQWHQWLRQDO
    m)LUVWWKHGHIHQGDQWPXVWSXUSRVHIXOO\DYDLOKLPVHOIRI             LQWHUDFWLRQZLWKWKHUHVLGHQWVRIDIRUXPVWDWHWKH=LSSRFRXUW
    WKH SULYLOHJH RI DFWLQJ LQ WKH IRUXP VWDWH RU FDXVLQJ D    FRQFOXGHG LV HYLGHQFH RI D FRQVFLRXV FKRLFH WR WUDQVDFW
    FRQVHTXHQFH LQ WKHIRUXPVWDWH6HFRQGWKHFDXVHRI              EXVLQHVVZLWKLQKDELWDQWVRIDIRUXPVWDWHLQDZD\WKDWWKH
    DFWLRQPXVWDULVHIURPWKHGHIHQGDQWjVDFWLYLWLHVWKHUH             SDVVLYHSRVWLQJRILQIRUPDWLRQDFFHVVLEOHIURPDQ\ZKHUHLQ
    )LQDOO\WKHDFWVRIWKHGHIHQGDQWRUFRQVHTXHQFHVFDXVHG            WKHZRUOGLVQRW,G
    E\ WKH GHIHQGDQW PXVW KDYH D VXEVWDQWLDO HQRXJK
    FRQQHFWLRQZLWKWKHIRUXPVWDWHWRPDNHWKHH[HUFLVHRI                7KHPDLQWHQDQFHRI1*6jVZHEVLWHLQDQGRILWVHOIGRHV
    MXULVGLFWLRQRYHUWKHGHIHQGDQWUHDVRQDEOHl                         QRW FRQVWLWXWH WKH SXUSRVHIXO DYDLOPHQW RI WKH SULYLOHJH RI
                                                                         DFWLQJLQ0LFKLJDQ$Q,QWHUQHWZHEVLWHE\LWVYHU\QDWXUHFDQ
60DFK&RY0RKDVFR,QGXV,QF)GWK             EH DFFHVVHG LQWHUQDWLRQDOO\  %\ PDLQWDLQLQJ D ZHEVLWH LQ
&LU                                                            3HQQV\OYDQLD1*6LVQRPRUHEHQHILWWLQJIURPWKHODZVRI
                                                                         0LFKLJDQWKDQIURPWKHODZVRIDQ\RWKHUVWDWH7KHOHYHORI
  7XUQLQJWRWKHILUVW0RKDVFRUHTXLUHPHQW1*6FRQWHQGV                 FRQWDFW ZLWK D VWDWH WKDW RFFXUV VLPSO\ IURP WKH IDFW RI D
WKDW LW GLG QRW SXUSRVHIXOO\ DYDLO LWVHOI RI WKH EHQHILWV RI   ZHEVLWHjV DYDLODELOLW\ RQ WKH ,QWHUQHW LV WKHUHIRUH DQ
0LFKLJDQODZEHFDXVHUDWKHUWKDQUHDFKRXWWR0LFKLJDQLW              mDWWHQXDWHGlFRQWDFWWKDWIDOOVVKRUWRISXUSRVHIXODYDLOPHQW
HQJDJHG LQ QRWKLQJ PRUH WKDQ D mSDVVLYH DYDLOPHQW RI             %HQVXVDQ 5HVW &RUS Y .LQJ  ) 6XSS  
0LFKLJDQRSSRUWXQLWLHVl.KDODIY%DQNHUV	6KLSSHUV,QV              6'1<FRPSDULQJWKHPDLQWHQDQFHRIDZHEVLWHWR
&R  1:G   0LFK  KROGLQJ WKDW
