                                                                                   5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    :DWNLQV	6RQ3HW                                 1R                     3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

      6XSSOLHVY7KH,DPV&R                                                  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                                                                                            )LOH 1DPH DS

  >'@LPLQLVKHGFRPSHWLWLRQIRUWHUULWRULHVRUFXVWRPHUV
  DPRQJGHIHQGDQW
VGHDOHUVEHQHILWVUDWKHUWKDQKDUPV                81,7('67$7(6&28572)$33($/6
  VHOOHUVRIULYDOEUDQGV5HGXFHGULYDOU\DPRQJGHDOHUVLQ
  WKH GHIHQGDQW
V EUDQG DOORZV ULYDO VHOOHUV WR PDLQWDLQ                            )257+(6,;7+&,5&8,7
  YROXPHDQGSURILWZLWKRXWORZHULQJSULFHVRUWRH[SDQG                                     BBBBBBBBBBBBBBBBB
  WKHLUVDOHVE\XQGHUFXWWLQJWKHGHIHQGDQW
VIL[HGSULFHV
   6XFK LQWUDEUDQG UHVWUDLQWV FDQ HQDEOH WKH UHVWUDLQHG
  GHDOHUV WR SURPRWH WKH GHIHQGDQW
V EUDQG PRUH                    :$7.,16 	 621 3(7               ;
  DJJUHVVLYHO\ DQG WR SURYLGH VHUYLFHV GHVLUHG E\                  6833/,(6                        
  FRQVXPHUV6XFKPDUNHWLQJDQGVHUYLFHVPLJKWH[SDQG                             3ODLQWLII$SSHOODQW   
  VDOHV RI WKH GHIHQGDQW
V EUDQG DW WKH H[SHQVH RI ULYDO                                            1R
  EUDQGV  7KH SURILW ORVW E\ VHOOHUV RI ULYDO EUDQGV DV D                                     
  UHVXOWRIHQKDQFHGLQWHUEUDQGFRPSHWLWLRQLVQRWDQWLWUXVW                        Y                     !
                                                                                                          
  LQMXU\KRZHYHUIRULWLVLQFRQVLVWHQWZLWKWKHUDWLRQDOH                                              
  IRUFRQGHPQLQJDGLVWULEXWLRQUHVWUDLQW6XFKUHVWUDLQWV              7+( ,$06 &203$1<                
  FDQYLRODWHWKHDQWLWUXVWODZVEHFDXVHWKH\PLJKWLQMXUH                       'HIHQGDQW$SSHOOHH 
  SXUFKDVHUV RI WKH GHIHQGDQW
V EUDQG QRW EHFDXVH WKH\                                            
  PLJKW LQWHQVLI\ LQWHUEUDQG FRPSHWLWLRQ  (QKDQFHG                                                 1
  LQWHUEUDQGFRPSHWLWLRQLVDYLUWXHQRWDYLFHRIDQLOOHJDO
  GLVWULEXWLRQUHVWUDLQW                                                     $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                               IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW'D\WRQ
3KLOOLS($UHHGDHWDO$QWLWUXVW/DZG                             1Rn:DOWHU+5LFH'LVWULFWsXGJH

                          &RQFOXVLRQ                                                      $UJXHG0DUFK

  )RUWKHIRUHJRLQJUHDVRQVZHDIILUPWKHMXGJPHQWRIWKH                             'HFLGHGDQG)LOHGsXQH
GLVWULFWFRXUWLQDOOUHVSHFWV
                                                                         %HIRUH&2/(DQG*,/0$1&LUFXLWsXGJHV$/'5,&+
                                                                                           'LVWULFWsXGJH




                                                                            
                                                                             7KH +RQRUDEOH $QQ $OGULFK 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
                                                                        1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ



                                                                                                           
       :DWNLQV	6RQ3HW                               1R        1R                             :DWNLQV	6RQ3HW          
        6XSSOLHVY7KH,DPV&R                                                                             6XSSOLHVY7KH,DPV&R

                       BBBBBBBBBBBBBBBBB                                   EHIRUH H[SLUDWLRQ RI WKH FRQWUDFW  7KH FRQWUDFW EHWZHHQ
                                                                           :DWNLQVDQG,DPVRQWKHRWKHUKDQGZDVDFRQWUDFWIRUD
                            &2816(/                                        IL[HGGXUDWLRQWKDWWHUPLQDWHGZLWKRXWDFWLRQRIHLWKHUSDUW\
                                                                           )RUWKHIRUHJRLQJUHDVRQVZHKROGWKDWWKHGLVWULFWFRXUWGLG
$5*8('  6WHSKHQ ' &ROEHUW %527+(5721 	                            QRWHUULQJUDQWLQJVXPPDU\MXGJPHQWRQ:DWNLQVjVFODLPIRU
&2/%(57+LJKODQG9LOODJH7H[DVIRU$SSHOODQW'RQDOG                   EUHDFKRIWKHGXW\RIJRRGIDLWK
sHIIUH\,UHODQG)$58.,*,//,$0	,5(/$1''D\WRQ
2KLR IRU $SSHOOHHV  21 %5,()  6WHSKHQ ' &ROEHUW              ):DWNLQVjV&ODLP8QGHUWKH&OD\WRQ$FW
:LOOLDP s %URWKHUWRQ %527+(5721 	 &2/%(57
+LJKODQG 9LOODJH 7H[DV IRU $SSHOODQW  'RQDOG sHIIUH\               7KHGLVWULFWFRXUWJUDQWHGVXPPDU\MXGJPHQWLQIDYRURI
,UHODQG /LVD 0 3DULOR 0DU\ / :LVHPDQ )$58.,                   ,DPVRQ:DWNLQVjVFODLPWKDW,DPVYLRODWHGRIWKH&OD\WRQ
*,//,$0	,5(/$1''D\WRQ2KLRIRU$SSHOOHHV                         $FW86&:HDIILUP
                       BBBBBBBBBBBBBBBBB                                      $VVXPLQJDUJXHQGRWKDW,DPVYLRODWHGWKH&OD\WRQ$FWE\
                                                                           RIIHULQJ:DWNLQVDSULFHGLVFRXQWLQUHWXUQIRU:DWNLQVjV
                           23,1,21                                         DJUHHPHQWWRVHOO,DPVSURGXFWVH[FOXVLYHO\:DWNLQVjVFODLP
                       BBBBBBBBBBBBBBBBB                                   PXVW IDLO  m7KH 6L[WK &LUFXLW LW LV IDLU WR VD\ KDV EHHQ
                                                                           UHDVRQDEO\DJJUHVVLYHLQXVLQJWKHDQWLWUXVWLQMXU\GRFWULQHWR
   $/'5,&+ 'LVWULFW sXGJH  7KLV FDVH DURVH RXW RI WKH           EDUUHFRYHU\ZKHUHWKHDVVHUWHGLQMXU\DOWKRXJKOLQNHGWRDQ
WHUPLQDWLRQRIDORQJVWDQGLQJDJUHHPHQWEHWZHHQ:DWNLQV                   DOOHJHG YLRODWLRQ RI WKH DQWLWUXVW ODZV IORZV GLUHFWO\ IURP
WKH SODLQWLII EHORZ DQG ,DPV WKH GHIHQGDQW XQGHU ZKLFK          FRQGXFWWKDWLVQRWLWVHOIDQDQWLWUXVWYLRODWLRQl9DOOH\3URGV
:DWNLQV GLVWULEXWHG ,DPVjV SURGXFWV LQ 0LFKLJDQ  ,Q                &RY/DQGPDUN)GWK&LU
VXPPDU\ :DWNLQV DOOHJHV WKDW ,DPV PDGH SDURO
UHSUHVHQWDWLRQVWR:DWNLQVWKDWLILWEHFDPHDQH[FOXVLYH,DPV                7RWKHH[WHQW:DWNLQVLVFODLPLQJWKDWLWVXIIHUHGDQLQMXU\
GLVWULEXWRU,DPVZRXOGPDNHLWWKHH[FOXVLYH,DPVGLVWULEXWRU             DVDUHVXOWRIWHUPLQDWLRQRILWVGLVWULEXWRUVKLSZHILQGDVGLG
LQDWHUULWRU\LQ0LFKLJDQZKHQ,DPVPRYHGWRDQH[FOXVLYH                 WKHGLVWULFWFRXUWWKDWZKLOHDFRQWUDFWRUWRUWFODLPPLJKWOLH
WHUULWRU\GLVWULEXWLRQV\VWHP:DWNLQVDOOHJHVWKDWLWUHOLHGRQ          DQ DQWLWUXVW FODLP GRHV QRW EHFDXVH WKH LQMXU\ WR :DWNLQV
WKRVHUHSUHVHQWDWLRQVWRLWVGHWULPHQWEXWWKDW,DPVWHUPLQDWHG           IORZVIURPWKHWHUPLQDWLRQWKHDQWLWUXVWYLRODWLRQZDVQRWD
LWVGLVWULEXWRUVKLSDJUHHPHQWDQGJDYHDQH[FOXVLYHFRQWUDFW               QHFHVVDU\SUHGLFDWHRIWKHLQMXU\6HH9DOOH\3URGVVXSUDDW
WR D FRPSHWLQJ GLVWULEXWRU  7KH GLVWULFW FRXUW GLVPLVVHG            7R WKH H[WHQW :DWNLQV LV FODLPLQJ WKDW LW LV QRZ
:DWNLQVjV FODLP XQGHU WKH 0LFKLJDQ )UDQFKLVH ,QYHVWPHQW              VXIIHULQJDVDUHVXOWRIWKHDUUDQJHPHQWZKHUHE\,DPVJUDQWV
/DZ SXUVXDQW WR )HG 5 &LY 3 E DQG JUDQWHG              :ROYHUWRQH[FOXVLYHWHUULWRULHVDQGDGLVFRXQWLQUHWXUQIRUDQ
VXPPDU\MXGJPHQWRQLWVFODLPVXQGHUWKH&OD\WRQ$FWWKH                  DJUHHPHQWWRVHOO,DPVSURGXFWVH[FOXVLYHO\ZHDJUHHZLWK
5RELQVRQ3DWPDQ $FW     DQG WKH 6KHUPDQ $FW DQG RQ LWV           3URIHVVRU$UHHGDjVREVHUYDWLRQ
FRPPRQODZFODLPV:HDIILUPWKHMXGJPHQW
                                                                             $GHIHQGDQWPDQXIDFWXUHU
VGLVWULEXWLRQUHVWUDLQWVGRQRW
                                                                             JHQHUDOO\LQMXUHULYDOPDQXIDFWXUHUVRUWKHLUGHDOHUVDQG
    
     :DWNLQV   GRHV QRW DSSHDO IURP WKH VXPPDU\ MXGJPHQW RQ LWV FODLPV
                                                                             WKH ORVV RI EXVLQHVV WKDW PLJKW RFFXU LV QRW DQWLWUXVW
                                                                             LQMXU\
IRU EUHDFK RI FRQWUDFW RU WRUWLRXV LQWHUIHUHQFH RU LWV FODLPV XQGHU WKH
5RELQVRQ3DWPDQ $FW RU WKH 6KHUPDQ $FW     7KHUHIRUH WKHVH FODLPV DUH
    :DWNLQV	6RQ3HW                               1R      1R                             :DWNLQV	6RQ3HW         
      6XSSOLHVY7KH,DPV&R                                                                           6XSSOLHVY7KH,DPV&R

GLVFUHWLRQWRGHFLGHQRWWRDJUHHLILWGHWHUPLQHGLWGLGQRW                                        )DFWV
QHHGWKHGHDOHUjVVHUYLFHVLQWKHDUHDKHSURSRVHGWRORFDWHKLV
GHDOHUVKLS2QWKHVHIDFWVWKHFRXUWKHOGWKDWWKHUHZDVQR            ,DPV LV LQ WKH EXVLQHVV RI PDQXIDFWXULQJ DQG VHOOLQJ SHW
ELQGLQJFRQWUDFW,GDW7KHUXOHRI*HQHUDO0RWRUV          IRRGV  )RU PDQ\ \HDUV :DWNLQV ZDV D QRQH[FOXVLYH
DSSOLHV KHUH EHFDXVH WKH FRQWUDFW PDNHV LW FOHDU WKDW ,DPV   GLVWULEXWRURI,DPVSURGXFWVLQ0LFKLJDQ,QRU
UHWDLQHGGLVFUHWLRQWRUHIXVHWRUHQHZLIWKHWHUPVSURSRVHG           ,DPV EHJDQ WR UHTXLUH :DWNLQV DV ZHOO DV LWV RWKHU
ZHUHQRWmPXWXDOO\DJUHHDEOHl                                        GLVWULEXWRUVWRVLJQ\HDUO\ZULWWHQGLVWULEXWRUVKLSDJUHHPHQWV
                                                                       8QWLO:DWNLQVZDVWKHVROHGLVWULEXWRURI,DPVSURGXFWV
  $OVRLWDSSHDUVIURPWKHIDFHRIWKHFRQWUDFWWKDWQRQHRI          LQ0LFKLJDQEXWLQ:ROYHUWRQ,QFDOVREHJDQVHOOLQJ
WKHWHUPVRIWKHSURSRVHGUHQHZDOKDGEHHQDJUHHGXSRQ$V            ,DPVSURGXFWVLQWKHVWDWH
)DUQVZRUWKZULWHV
                                                                          ,Q,DPVEHJDQRIIHULQJLWVGLVWULEXWRUVDGLVFRXQW
  ,QSUDFWLFHSDUWLHVGRQRWXVXDOO\PDNHDJUHHPHQWVWR          RQ LWV SURGXFWV LQ UHWXUQ IRU D FRPPLWPHQW IURP WKH
  QHJRWLDWH XQWLO WKH QHJRWLDWLRQV DUH ZHOO DGYDQFHG       GLVWULEXWRUVWRVHOO,DPVSURGXFWVH[FOXVLYHO\7KHGLVFRXQW
  7KHUHZLOORIFRXUVHEHRFFDVLRQDOFDVHVLQZKLFKDQ               ZDVVLJQLILFDQWJLYHQWKHORZSURILWPDUJLQVFXVWRPDU\LQWKH
  DJUHHPHQWWRQHJRWLDWHZLOOKDYHEHHQPDGHDWVXFKDQ                EXVLQHVV:DWNLQVDOOHJHVWKDWLQ,DPVSURPLVHGLWWKDW
  HDUO\ VWDJH RI QHJRWLDWLRQV WKDW D FRXUW FRXOG SURSHUO\      LILWEHFDPHDQH[FOXVLYH,DPVGLVWULEXWRU,DPVZRXOGJUDQW
  UHIXVHWRHQIRUFHLW                                               LWDQH[FOXVLYHVDOHVWHUULWRU\LQ0LFKLJDQZKHQ,DPVFKDQJHG
                                                                       WR D GLVWULEXWLRQ V\VWHP RI H[FOXVLYH WHUULWRULHV  :DWNLQV
( $OODQ )DUQVZRUWK 3UHFRQWUDFWXDO /LDELOLW\ DQG                 FODLPVWKDWLWEHFDPHDQH[FOXVLYHGLVWULEXWRULQUHOLDQFHRQ
3UHOLPLQDU\ $JUHHPHQWV )DLU 'HDOLQJ DQG )DLOHG                   WKLVSURPLVH,WHQWHUHGLQWRDQH[FOXVLYLW\DJUHHPHQWLQsXO\
1HJRWLDWLRQ&ROXP/5HY:KHUHDV              DQG DQQXDOO\ WKHUHDIWHU WKURXJK   1HYHUWKHOHVV
KHUH WKH SODLQWLII FDQ VKRZ QR SURPLVH WR PDNH D GHDO RQ   ,DPVQRWLILHG:DWNLQVLQ6HSWHPEHUWKDWLWZRXOGQRW
ZKLFKLWUHDVRQDEO\FRXOGKDYHUHOLHGWKHFRXUWZLOOQRWDOORZ        UHQHZLWVGLVWULEXWRUVKLSFRQWUDFWDQGWKHFRQWUDFWH[SLUHGLQ
UHFRYHU\6HHLGDWQFLWLQJ 5HSURV\VWHP%9Y           DFFRUGDQFH ZLWK LWV WHUPV RQ sDQXDU\    ,DPV
6&0&RUS)GG&LU                         VXEVHTXHQWO\HQWHUHGLQWRDQH[FOXVLYHGLVWULEXWLRQFRQWUDFWLQ
                                                                       0LFKLJDQZLWK:ROYHUWRQ
   :DWNLQVFLWHVVHYHUDOFDVHVIRUWKHSURSRVLWLRQWKDW2KLR
FRPPRQ ODZ mGRHV QRW SHUPLW D SDUW\ WR WHUPLQDWH >D            7KH FRQWUDFW RI sDQXDU\   EHWZHHQ ,DPV DQG
FRQWUDFW@LQµEDGIDLWKjl%UDW%XWWKHVHFDVHVLQYROYH      :DWNLQVFRQWDLQVWKHIROORZLQJSURYLVLRQV
XQLODWHUDOWHUPLQDWLRQE\RQHSDUW\UDWKHUWKDQH[SLUDWLRQRI
WKH FRQWUDFW LQ DFFRUGDQFH ZLWK LWV H[SOLFLW WHUPV  (J      1RWZLWKVWDQGLQJ WKH DSSRLQWPHQW KHUHLQ WKH &RPSDQ\
5DQGROSKY1HZ(QJODQG0XW/LIH,QV&R)G               >,DPV@UHVHUYHVWKHULJKWIRULWVHOIWRVHOO3URGXFWVZLWKLQ
WK&LUFODXVHSURYLGHGIRUWHUPLQDWLRQEHIRUH
HQGRIFRQWUDFWE\HLWKHUSDUW\RQVL[W\GD\VjQRWLFH5HHVY
%DQN%OGJ	(TXLS&RUS)GWK&LU           QRW EHIRUH XV   (QHUWHFK (OHF Y 0DKRQLQJ &RXQW\ &RPPjUV  )G
WHUPLQDWLRQ RI HPSOR\PHQW FRQWUDFW ZLWK mQR IL[HG                 WK &LU 
GXUDWLRQl=LPPHUY:HOOV0JPW&RUS)6XSS
 6'1<  WHUPLQDWLRQ RI HPSOR\PHQW FRQWUDFW              
                                                                            :ROYHUWRQ ZDV D GHIHQGDQW EHORZ :H JUDQWHG D PRWLRQ GLVPLVVLQJ
                                                                       ,DPVjV DSSHDO DV WR :ROYHUWRQ
       :DWNLQV	6RQ3HW                                1R     1R                           :DWNLQV	6RQ3HW        
        6XSSOLHVY7KH,DPV&R                                                                         6XSSOLHVY7KH,DPV&R

    WKH7HUULWRU\,QDGGLWLRQWKH&RPSDQ\PD\DSSRLQWDQ\                %HFDXVH WKH FRQWUDFW EHWZHHQ :DWNLQV DQG ,DPV LV
    RWKHU GLVWULEXWRU WR VHOO 3URGXFWV ZLWKLQ WKH 7HUULWRU\      JRYHUQHGE\WKH8&&2KLRODZLPSRVHVDGXW\RIJRRG
                                                                  IDLWKLQLWVSHUIRUPDQFH2KLR5HY&RGH7KH
                                                                         TXHVWLRQ LV ZKHWKHU WKH UHQHZDO SURYLVLRQ LQ WKH FRQWUDFW
    7KLV$JUHHPHQWVKDOOEHHIIHFWLYHRQ)HEUXDU\               LPSOLHVDGXW\WRQHJRWLDWHIRUDUHQHZDOLQJRRGIDLWKLQOLJKW
    DQGVKDOODXWRPDWLFDOO\H[SLUHZLWKRXWDQ\IXUWKHUDFWLRQ           RIWKHFRQWUDFWjVH[SLUDWLRQSURYLVLRQ)HZFDVHVGLVFXVVWKH
    E\ HLWKHU SDUW\ UHTXLUHG RQ sDQXDU\   XQOHVV         GXW\WRQHJRWLDWHWKHH[WHQVLRQRIDIUDQFKLVHLQJRRGIDLWK
    HDUOLHU WHUPLQDWHG DV VHW IRUWK LQ 6HFWLRQ  RU  RU   ,Q9\OHQH(QWHUV,QFY1DXJOHV,QF,QUH9\OHQH(QWHUV
    RWKHUZLVH LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI WKLV           ,QF)GWK&LUWKHIUDQFKLVHUHQHZDO
    $JUHHPHQW7KLV$JUHHPHQWPD\EHUHQHZHGWKHUHDIWHU                 FODXVHSURYLGHGWKDWWKHIUDQFKLVHHKDGWKHULJKWWRH[WHQGWKH
    RQ WHUPV PXWXDOO\ DJUHHDEOH WR WKH SDUWLHV RQO\ LQ D        IUDQFKLVHDJUHHPHQWmRQWHUPVDQGFRQGLWLRQVWREHQHJRWLDWHG
    ZULWLQJVLJQHGE\WKHSDUWLHVKHUHWR                  ZLWKLQVDLGVL[W\GD\Vl7KXVWKHFRXUWKHOG
    7KHGLVWULEXWRU>:DWNLQV@VKDOOFPDLQWDLQLQVWRFN           DOWKRXJKWKHWHUPVRIWKHUHQHZDOSURYLVLRQGLGQRWJLYH
    DWDOOWLPHVDQLQYHQWRU\RISURGXFWVLQVXFKTXDQWLWLHVDV            9\OHQH D JXDUDQWHHG ULJKW WR UHQHZ RQ D GHWHUPLQDEOH
    LQWKH&RPSDQ\jVRSLQLRQDIWHUFRQVXOWDWLRQDQGUHYLHZ                EDVLV WKH SURYLVLRQ REOLJDWHG 1DXJOHV WR QHJRWLDWH LQ
    ZLWK WKH 'LVWULEXWRU HLWKHU GLUHFWO\ RU WKURXJK WKH            JRRG IDLWK FRQFHUQLQJ WKH WHUPV DQG FRQGLWLRQV RI D
    &RPSDQ\jV UHSUHVHQWDWLYH DUH QHHGHG WR PHHW VDOHV               UHQHZDO
    UHTXLUHPHQWVIRUWKH7HUULWRU\
                                                                         ,GDW%XWLQ9\OHQHWKHIUDQFKLVHHKDGDQH[SOLFLWULJKW
    :LWK WKH H[FHSWLRQ RI 6FKHGXOH , ZKLFK PD\ EH               WRUHQHZDO7KHKROGLQJRI9\OHQHLVMXVWLILHGE\WKHUXOHWKDW
    XQLODWHUDOO\DPHQGHGE\WKH&RPSDQ\DVSURYLGHGLQWKLV              D SUHOLPLQDU\ DJUHHPHQW PD\ EH ELQGLQJ ZKHQ WKHUH LV DQ
    $JUHHPHQWDQGH[FHSWDVRWKHUZLVHSURYLGHGLQWKLV             RYHUDOODJUHHPHQWWRHQWHULQWRDELQGLQJFRQWUDFW6HH8QLWHG
    $JUHHPHQWQRFKDQJHPRGLILFDWLRQRUDPHQGPHQWRI                   0DJD]LQH&RY3UXGHQWLDO,QV&R)6XSS
    DQ\SURYLVLRQRIWKLV$JUHHPHQWZLOOEHELQGLQJXQOHVV               6'2KLR1HZ<RUNODZ$OSHUWY.RGHH7HFKV
    PDGHLQZULWLQJDQGVLJQHGE\WKHSDUWLHVKHUHWR            2KLR$SSG1(G
                                                                         XQGHU 2KLR ODZ UHOHYDQW IDFWRUV DUH ZKHWKHU SDUWLHV
    7KLV $JUHHPHQW VKDOO EH JRYHUQHG E\ WKH ODZV RI WKH         PDQLIHVWHGLQWHQWLRQWREHERXQGDQGZKHWKHULQWHQWLRQVDUH
    6WDWHRI2KLRH[FOXVLYHRILWVUXOHVRQFRQIOLFWRIODZV           VXIILFLHQWO\GHILQLWHWREHHQIRUFHG,QWKHLQVWDQWFDVHWKHUH
    DQGWKH8QLWHG6WDWHVRI$PHULFD                            LVRQWKHIDFHRIWKHFRQWUDFWQRPDQLIHVWDWLRQRILQWHQWWR
                                                                         UHDFKDIXWXUHDJUHHPHQWEXWUDWKHURQO\DSURYLVLRQWKDW
    7+,6 $*5((0(17 72*(7+(5 :,7+ 7+(                                 IXWXUHUHQHZDOVmPD\lEHH[HFXWHGRQmPXWXDOO\DJUHHDEOHl
    &203$1<j6 67$1'$5' 7(506 $1'                                      WHUPVLQZULWLQJ7KHFDVHLVPRUHVLPLODUWRFDVHVVXFKDV
    &21',7,2162)6$/(5(35(6(177+((17,5(                              *HQHUDO0RWRUV&RUSY.HHQHU0RWRUV,QF)G
    $*5((0(17 %(7:((1 7+( 3$57,(6 $1'                                WK &LU   7KHUH D FDU PDQXIDFWXUHU DQG D GHDOHU
    683(56('(6 $// 35,25 (;,67,1* $1'                              DJUHHG WKDW WKH\ ZRXOG H[HFXWH D FRQWUDFW LI WKH GHDOHUjV
    &217(0325$1(286$*5((0(176:+(7+(5                                  SURSRVDO ZDV DFFHSWDEOH WR WKH PDQXIDFWXUHU  7KH
    :5,77(1 25 25$/ %(7:((1 7+( 3$57,(6                            PDQXIDFWXUHUSURPLVHGWRJLYHSUHIHUHQWLDOFRQVLGHUDWLRQWR
    +(5(725(/$7,1* 727+(',675,%87,2125                              WKH GHDOHUjV SURSRVDO  %XW WKH PDQXIDFWXUHU UHWDLQHG
    6$/( 2) 7+(  &203$1<j6 352'8&76  $//
    :DWNLQV	6RQ3HW                             1R       1R                           :DWNLQV	6RQ3HW         
      6XSSOLHVY7KH,DPV&R                                                                        6XSSOLHVY7KH,DPV&R

DOOHJHGE\WKHSODLQWLIIDVWUXHWKHSODLQWLIIFDQSURYHQRVHW        68&+ 27+(5 $*5((0(176 $5( +(5(%<
RIIDFWVHQWLWOLQJKLPWRUHOLHI,G                                  7(50,1$7(' $1' ($&+ 3$57< +(5(%<
                                                                        5(/($6(6 7+( 27+(5 )520 $1< $1' $//
   7KHSDUWLHVGHYRWHGWKHLUDUJXPHQWVDWWULDODQGRQDSSHDO           &/$,06 $5,6,1* $6 $ 5(68/7 2) 25 ,1 $1<
WR WZR TXHVWLRQV  ZKHWKHU :DWNLQV FRXOG VKRZ WKDW LWV      :$< 5(/$7,1* 72 7+( 5(/$7,216+,3
GLVWULEXWRUVKLSZDVDIUDQFKLVHZLWKLQWKHVFRSHRIWKH0),/           %(7:((1 7+( &203 $1< $1' 7+(
DQGZKHWKHUWKHFKRLFHRIODZSURYLVLRQ LQ WKHZULWWHQ            ' ,6 7 5 ,% 8 7 2 5  8 1 ' ( 5  6 8 & +  2 7 + ( 5
FRQWUDFWGHSULYHG:DWNLQVRIDUHPHG\XQGHUWKH0LFKLJDQ                $*5((0(176 25 $6 $ 5(68/7 2) 68&+
VWDWXWH:HQHHGDQVZHUQHLWKHURIWKHVHTXHVWLRQV,Q&RRN           7(50,1$7,21 :,7+ 7+( (;&(37,21 2)
Y/LWWOH&DHVDU(QWHUV,QF)GWK&LU           &/$,06 %< 7+( &203$1< )25 021(< '8(
ZHKHOGWKDWDSODLQWLIIZKRFDQQRWSURYHUHDVRQDEOHUHOLDQFH           )25 *22'6 $1' 6(59,&(6 62/' 72 7+(
FDQQRW UHFRYHU XQGHU WKH 0),/  ,Q &RRN WKH IUDQFKLVHH        ',675,%87257+(81'(56,*1(',1',9,'8$/6
DOOHJHGWKDWKHZDVSURPLVHGDQH[FOXVLYHWHUULWRU\DQGWKH             21 %(+$/) 2) 7+( &203$1< $1' 7+(
ULJKWWRRSHQDGGLWLRQDOUHVWDXUDQWVDQGWKDWWKHIUDQFKLVRU           ',675,%8725$67+(&$6(0$<%(+(5(%<
EURNHLWVSURPLVHV7KHZULWWHQIUDQFKLVHDJUHHPHQWGLGQRW            $)),50 7+$7 7+(< +$9( &$5()8//< 5($'
FRQWDLQWKHDOOHJHGSURPLVHVEXWLWGLGFRQWDLQDQLQWHJUDWLRQ         7+,6 $*5((0(17 $1' )8//< 81'(567$1'
FODXVH2QWKHVHIDFWVZHJUDQWHGVXPPDU\MXGJPHQWIRUWKH            7+(7(506&217$,1(' ,1 7+($*5((0(17
IUDQFKLVRU:HKHOGWKDWWKH0),/GRHVUHTXLUHUHDVRQDEOH              
UHOLDQFH,GDW:HTXRWHGZLWKDSSURYDOWKH6HYHQWK
&LUFXLWjV REVHUYDWLRQ WKDW mLW LV VLPSO\ XQUHDVRQDEOH WR                                'LVFXVVLRQ
FRQWLQXHWRUHO\RQUHSUHVHQWDWLRQVDIWHUVWDWLQJLQZULWLQJWKDW
\RXDUHQRWVRUHO\LQJl,GTXRWLQJ+DUGHHjVRI0DXPHOOH          $&KRLFHRI/DZ
$UN,QFY+DUGHHjV)RRG6\V,QF)GWK
&LU%HFDXVHIRUWKHUHDVRQVJLYHQDERYHZHILQGDV          7KH SDUWLHV DJUHH WKDW 2KLR ODZ JRYHUQV WKH FODLPV IRU
D PDWWHU RI ODZ WKDW :DWNLQVjV UHOLDQFH RQ ,DPVjV SDURO      SURPLVVRU\HVWRSSHODQGEUHDFKRIWKHLPSOLHGGXW\RIJRRG
SURPLVHVZDVXQUHDVRQDEOHZHKROGWKDW:DWNLQVZRXOGEH              IDLWK DQG IDLU GHDOLQJ  :DWNLQV DUJXHV WKDW 0LFKLJDQ ODZ
XQDEOHWRSUHYDLOXQGHUWKH0),/HYHQLI KH FDQVKRZWKH            JRYHUQVLWVIUDXGFODLPDQGWKDWWKHSXEOLFSROLF\RI0LFKLJDQ
H[LVWHQFH RI D IUDQFKLVH DQG HYHQ LI WKH FKRLFH RI ODZ      SUHVHUYHVLWVVWDWXWRU\FODLPXQGHU WKH0LFKLJDQ)UDQFKLVH
SURYLVLRQ LQ WKH ZULWWHQ DJUHHPHQW GRHV QRW EDU KLV FODLP   ,QYHVWPHQW/DZ0),/GHVSLWHWKHFKRLFHRIODZSURYLVLRQ
7KHUHIRUH ZH KROG WKDW WKH GLVWULFW FRXUW GLG QRW HUU E\   LQWKHFRQWUDFW,DPVDUJXHVWKDWWKHGLVWULFWFRXUWSURSHUO\
GLVPLVVLQJWKH0),/FODLP                                            DSSOLHG 2KLR ODZ WR WKH IUDXG FODLP DQG WKDW EHFDXVH WKH
                                                                      SDUWLHVFKRVH2KLRODZWRJRYHUQWKHLUDJUHHPHQW:DWNLQV
(:DWNLQVjV&ODLP2I%UHDFKRIWKH'XW\RI*RRG)DLWK                FDQQRWSUHYDLORQLWV0LFKLJDQVWDWXWRU\FODLP
  7KHGLVWULFWFRXUWJUDQWHGVXPPDU\MXGJPHQWRQ:DWNLQVjV              :HUHYLHZFKRLFHRIODZUXOLQJVGHQRYR1RUWKODQG,QV
FODLPIRUEUHDFKRIWKHLPSOLHGGXW\RIJRRGIDLWKDQGIDLU           &RY*XDUGVPDQ3URGV,QF)GWK&LU
GHDOLQJ$VQRWHGDERYHZHUHYLHZVXPPDU\MXGJPHQWVGH                %HFDXVH WKH FDVH ZDV WUDQVIHUUHG IURP WKH (DVWHUQ
QRYR                                                                 'LVWULFWRI0LFKLJDQWRWKH6RXWKHUQ'LVWULFWRI2KLRSXUVXDQW
                                                                      WR86&DZHDSSO\WKHFKRLFHRIODZUXOHVRI
      :DWNLQV	6RQ3HW                                   1R        1R                             :DWNLQV	6RQ3HW          
       6XSSOLHVY7KH,DPV&R                                                                                 6XSSOLHVY7KH,DPV&R

0LFKLJDQ WKH IRUXP RI WKH WUDQVIHUULQJ FRXUW  1RUWKODQG              :DWNLQVjVDUJXPHQWWKDW,DPVFRQWLQXHGWRPDNHIUDXGXOHQW
VXSUD DW   )RU WKH IROORZLQJ UHDVRQV ZH KROG WKDW WKH         UHSUHVHQWDWLRQVDIWHUWKHH[HFXWLRQRIWKHDJUHHPHQWDYRLGV
GLVWULFWFRXUWGLGQRWHUULQDSSO\LQJ2KLRODZWRWKHIUDXG                  WKH SDURO HYLGHQFH UXOH ZKLFK UHODWHV RQO\ WR SULRU
FODLP  :H QHHG QRW GHFLGH WKH FKRLFH RI ODZ SUREOHP                UHSUHVHQWDWLRQV%XWEHFDXVHWKHFRQWUDFWLVIRUWKHVDOHRI
SUHVHQWHG E\WKH0),/FODLPEHFDXVHZHKROGLQIUDWKDW                    JRRGV WKDW SURYLGHV WKDW PRGLILFDWLRQV PXVW EH LQ ZULWLQJ
HYHQLIWKHFKRLFHRIODZFODXVHGRHVQRWEDUWKH0),/FODLP                 :DWNLQVjV DUJXPHQW UXQV XS DJDLQVW 2KLR 5HY &RGH 
WKHGLVWULFWFRXUWGLGQRWHUULQGLVPLVVLQJWKHFODLPIRUIDLOXUH            % ZKLFK SURYLGHV  m$ VLJQHG DJUHHPHQW ZKLFK
WRVWDWHDFODLPXSRQZKLFKUHOLHIFRXOGEHJUDQWHG                          H[FOXGHVPRGLILFDWLRQRUUHFLVVLRQH[FHSWE\DVLJQHGZULWLQJ
                                                                              FDQQRWEHRWKHUZLVHPRGLILHGRUUHVFLQGHGl
   8QGHU0LFKLJDQODZDWRUWFODLPLVJRYHUQHGE\WKHODZRI
WKH IRUXP XQOHVV D mUDWLRQDO UHDVRQl H[LVWV WR GLVSODFH LW             )LQDOO\:DWNLQVjVDUJXPHQWWKDW,DPVjVUHSUHVHQWDWLRQVDUH
2OPVWHDGY$QGHUVRQ0LFK1:G                     QRWZLWKLQWKHVFRSHRIWKHVWDWXWRU\8&&SDUROHYLGHQFH
,Q,PDJLQJ)LQ6HUYVY/HWWHUJUDSKLFV'HWURLW                UXOHLVZLWKRXWPHULW7KHVWDWXWHDOORZVSURRIRIFRXUVHRI
,QF8&&5HS6HUYG&%&86$SS                       GHDOLQJFRXUVHRISHUIRUPDQFHRUXVDJHRIWUDGHWRmH[SODLQl
/(;,6WK&LUDQXQSXEOLVKHGRSLQLRQZHKHOG                   RU mVXSSOHPHQWl WKH ZULWWHQ DJUHHPHQW  %XW :DWNLQVjV
WKDWXQGHU0LFKLJDQODZIUDXGLVDWRUWFODLPDQGWKDWZKHQ                 HYLGHQFH  HYLGHQFH RI SDURO SURPLVHV RI DQ H[FOXVLYH
DQ LQMXU\ RFFXUV LQ 0LFKLJDQ WR D 0LFKLJDQ FRPSDQ\                   WHUULWRU\DQGRIUHQHZDOGRHVQRWH[SODLQRUVXSSOHPHQWWKH
0LFKLJDQODZZRXOGJRYHUQWKHFODLPGHVSLWHDFKRLFHRIODZ                   DJUHHPHQWLWFRQWUDGLFWVWKHDJUHHPHQW$VQRWHGDERYHWKH
FODXVH,GDW,PDJLQJ)LQ6HUYVUHOLHGRQ$OOPDQG                  ZULWWHQFRQWUDFWH[SOLFLWO\SHUPLWV,DPVWRmDSSRLQWDQ\RWKHU
$VVRFV Y +HUFXOHV ,QF  )6XSS  (' 0LFK               GLVWULEXWRU WR VHOO 3URGXFWV ZLWKLQ WKH 7HUULWRU\l DQG LW
%XWLQ$OOPDQGWKH&RXUWDSSOLHG0LFKLJDQODZQRW                    H[SOLFLWO\ SURYLGHV IRU H[SLUDWLRQ RI WKH FRQWUDFW RQ
RQO\EHFDXVHWKHHIIHFWVRIWKHWRUWZHUHIHOWLQ0LFKLJDQEXW               sDQXDU\OHDYLQJUHQHZDOWRIXWXUHDJUHHPHQWRIWKH
DOVREHFDXVHWKHmSDUWLHVDJUHH>G@WKDW0LFKLJDQODZDSSOLHVl                SDUWLHV
,G DW  Q   ,Q WKH LQVWDQW FDVH WKH SDUWLHV GR QRW VR
DJUHH0RUHRYHULQ$OOPDQGLGDWDQG,PDJLQJ)LQ                    )RUWKHIRUHJRLQJUHDVRQVZHILQGWKDW:DWNLQVjVUHOLDQFH
6HUYV VXSUD DW  WKH DOOHJHGO\ IUDXGXOHQW                          RQ ,DPVjV UHSUHVHQWDWLRQV ZDV XQUHDVRQDEOH DV D PDWWHU RI
PLVUHSUHVHQWDWLRQV ZHUH PLVUHSUHVHQWDWLRQV RI IDFW WKDW                  ODZ DQG WKHUHIRUH WKDW WKH GLVWULFW FRXUW SURSHUO\ JUDQWHG
LQGXFHGWKHSODLQWLIIWRHQWHUDFRQWUDFW,QWKHLQVWDQWFDVHRQ           VXPPDU\ MXGJPHQW RQ :DWNLQVjV FODLPV IRU IUDXG DQG
WKH RWKHU KDQG WKH IUDXG DOOHJHG LV SURPLVVRU\ IUDXG                SURPLVVRU\HVWRSSHO
:DWNLQV DOOHJHV WKDW ,DPV PDGH SURPLVHV RI IXWXUH
SHUIRUPDQFHWKDWLWGLGQRWLQWHQGWRNHHS7KHGLVWLQFWLRQ                  ':DWNLQVjV&ODLP8QGHUWKH0),/
EHWZHHQVXFKDFODLPDQGDFODLPIRUEUHDFKRIFRQWUDFWLVVR
VOLJKWWKDWWKHSDUWLHVjDJUHHPHQWWKDW2KLRODZZRXOGJRYHUQ                    7KH GLVWULFW FRXUW GLVPLVVHG :DWNLQVjV FODLP XQGHU WKH
WKHLUDJUHHPHQWLHWKHLUFRQWUDFWLVDVXIILFLHQWUHDVRQWR              0LFKLJDQ )UDQFKLVH ,QYHVWPHQW /DZ 0LFK &RPS /DZV
GLVSODFH WKH ODZ RI 0LFKLJDQ DQG DSSO\ 2KLR ODZ WR                   HWVHTIRUIDLOXUHWRVWDWHDFODLPXSRQZKLFK
:DWNLQVjVIUDXGFODLP7KHUHIRUHZHFRQFOXGHWKDWWKH&RXUW                 UHOLHI FDQ EH JUDQWHG  :H UHYLHZ GLVPLVVDOV IRU IDLOXUH WR
GLGQRWHUUE\DSSO\LQJ2KLRODZWRWKHFODLP                                VWDWHDFODLPGHQRYR*DRYsHQLIHU)GWK
                                                                              &LU   :H DIILUP D GLVPLVVDO LI WDNLQJ DOO WKH IDFWV
       :DWNLQV	6RQ3HW                                 1R   1R                             :DWNLQV	6RQ3HW           
         6XSSOLHVY7KH,DPV&R                                                                          6XSSOLHVY7KH,DPV&R

IDLWKLQIUDFODXVHVVXFKDVWKHUHQHZDOFODXVHLQWKLVFRQWUDFW        %$SSOLFDELOLW\RIWKH8QLIRUP&RPPHUFLDO&RGH
PD\VRPHWLPHVFUHDWHDGXW\WRQHJRWLDWHWKHUHQHZDOLQJRRG
IDLWK%XWDFODXVHOHDYLQJRSHQWKHSRVVLELOLW\RIDIXWXUH              7KHFDVHDSSHDUVWRKDYHEHHQDUJXHGRQWKHDVVXPSWLRQ
DJUHHPHQWDIIHFWVQHLWKHUWKHFRPSOHWHQHVVQRUWKHILQDOLW\RI           WKDWWKHFRQWUDFWLVDFRQWUDFWIRUWKHVDOHRIJRRGVZLWKLQWKH
WKHSUHVHQWDJUHHPHQW                                                  VFRSHRI$UWLFOHRIWKH8QLIRUP&RPPHUFLDO&RGH:H
                                                                         DJUHHZLWKWKHDVVXPSWLRQ:KHWKHUWKHFRQWUDFWLVDVDOHV
   6LQFHWKHZULWWHQDJUHHPHQWEHWZHHQ:DWNLQVDQG,DPVLV               FRQWUDFWLVRIVRPHLPSRUWDQFHLQWKLVFDVHEHFDXVHWKHSDURO
DFRPSOHWHLQWHJUDWLRQWKHSDUROHYLGHQFHUXOHDSSOLHV7KHUH          HYLGHQFH UXOH JRYHUQLQJ FRPPHUFLDO FRQWUDFWV FRGLILHG DW
DUHKRZHYHUH[FHSWLRQVWRWKHUXOH7KHH[FHSWLRQRQZKLFK            2KLR 5HY &RGH   GLIIHUV IURP WKH FRPPRQ ODZ
:DWNLQVPRVWKHDYLO\UHOLHVLVWKHUXOHWKDWHYLGHQFHRIIUDXG           UXOHDQGEHFDXVHWKHVLJQLILFDQFHRI:DWNLQVjVDOOHJDWLRQV
LQWKHLQGXFHPHQWLVQRWEDUUHGE\WKHSDUROHYLGHQFHUXOH              WKDW,DPVPDGHSDUROUHSUHVHQWDWLRQVDIWHUH[HFXWLRQRIWKH
&RDO5HVRXUFHV,QFY*XOI	:,QGXV,QF)G            ZULWWHQ FRQWUDFW GHSHQGV RQ WKH DSSOLFDWLRQ RI 2KLR 5HY
QWK&LUDFFRUG*DOPLVKVXSUDDW            &RGH%D8&&SURYLVLRQLQGHURJDWLRQRIWKH
1(GDW%XWmIUDXGLQWKHLQGXFHPHQWlLQWKHVHQVH           FRPPRQODZWKDWJRYHUQVRUDOPRGLILFDWLRQRUUHFLVVLRQRI
LQWHQGHG LQ &RDO 5HVRXUFHV DQG *DOPLVK LV D IUDXGXOHQW          ZULWWHQFRPPHUFLDOFRQWUDFWV
PLVVWDWHPHQWRIIDFWWKDWLQGXFHVDSDUW\WRHQWHUDFRQWUDFW
QRWDIUDXGXOHQWSURPLVHRIIXWXUHSHUIRUPDQFHWKDWLVZLWKLQ               :KLOHZHKDYHRQRFFDVLRQGLVFXVVHGWKHFODVVLILFDWLRQRI
WKHVFRSHRIWKHVXEMHFWPDWWHURIWKHZULWWHQFRQWUDFWEXWWKDW         DGLVWULEXWRUVKLSDJUHHPHQWDVDVDOHVFRQWUDFWZKHQGHFLGLQJ
ZDVQRWLQFOXGHGLQLW                                                  FDVHV QRW JRYHUQHG E\ 2KLR ODZ VHH HJ $% 3URGV Y
                                                                         'DPSQH\ &R ,QF 1R   86 $SS /(;,6
  >7@KHSDUROHYLGHQFHUXOHGRHVDSSO\WRSURPLVVRU\                DW  WK &LU sXO   KROGLQJ WKDW XQGHU
  IUDXG LI WKH HYLGHQFH LQ TXHVWLRQ LV RIIHUHG WR VKRZ D       0LFKLJDQODZGLVWULEXWRUVKLSDJUHHPHQWZLWKRXWDTXDQWLW\
  SURPLVH ZKLFK FRQWUDGLFWV DQ LQWHJUDWHG ZULWWHQ                   WHUPZDVQRWDFRQWUDFWIRUWKHVDOHRIJRRGV+HUPDQ%URV
  DJUHHPHQW  8QOHVV WKH IDOVH SURPLVH LV HLWKHU                  6DOHV&RUSY+LOOjV3HW3URGV1R86$SS
  LQGHSHQGHQWRIRUFRQVLVWHQWZLWKWKHZULWWHQLQVWUXPHQW              /(;,6DWWK&LU0D\KROGLQJWKDW
  HYLGHQFHWKHUHRILVLQDGPLVVLEOH                                      XQGHU .DQVDV ODZ GLVWULEXWRUVKLS      DJUHHPHQW ZDV QRW D
                                                                         FRQWUDFWIRUWKHVDOHRIJRRGVZHNQRZRIQRFDVHGHFLGHG
*DOPLVKVXSUDDW1(GDWFLWDWLRQDQGLQWHUQDO           XQGHU 2KLR ODZ WKDW GLVFXVVHV WKH TXHVWLRQ ZKHWKHU D
TXRWDWLRQPDUNVRPLWWHG7KHUHLVQRHYLGHQFHLQWKHUHFRUG            GLVWULEXWRUVKLSDJUHHPHQWLVDFRQWUDFWIRUWKHVDOHRIJRRGV
VXIILFLHQW WR EULQJ WKLV FDVH ZLWKLQ WKH UXOH RI :LOOLDPV Y   7KHPDMRULW\UXOHLVWKDWGLVWULEXWRUVKLSFRQWUDFWV DUHVDOHV
(GZDUGV2KLR$SSG1(G                   FRQWUDFWV6HH6DOO\%HDXW\&R,QFY1H[[XV3URGV&R
 ZKLFK SHUPLWV FODLPV RI IUDXG GHVSLWH WKH SDURO          ,QF)GWK&LU3DXOVRQ,QFY
HYLGHQFHUXOHZKHQWKHSURPLVRUKDGQRLQWHQWLRQRIKRQRULQJ             %URPDU,QF)6XSS'+DZERWK
KLVSURPLVHDQGWKXVKDGDFWXDOIUDXGXOHQWLQWHQW                      OLVWLQJMXULVGLFWLRQVLQZKLFKWKHPDMRULW\UXOHDSSOLHV7KH
                                                                         PDMRULW\ UXOH VKRXOG DSSO\ LQ WKLV FDVH EHFDXVH LW LV FOHDU

                                                                             
                                                                               2XU KROGLQJ UHJDUGLQJ .DQVDV ODZ LV GRXEWIXO 6HH /	0 (QWHUV

                                                                        ,QF Y %(, 6HQVRUV 	 6\V &R  )6XSSG   ' .DQ 
     6HH   :DWNLQV 'HS DW    SDVVLP   s$ DW           DIIjG  )G  WK &LU 
     :DWNLQV	6RQ3HW                                1R       1R                                  :DWNLQV	6RQ3HW                    
      6XSSOLHVY7KH,DPV&R                                                                                  6XSSOLHVY7KH,DPV&R

IURPWKHWH[WRIWKHZULWWHQDJUHHPHQWEHWZHHQ:DWNLQVDQG               DJUHHPHQW  7KH UXOH LV QRW D UXOH RI HYLGHQFH EXW RI
,DPVWKDWWKHLUUHODWLRQVKLSZDVSULPDULO\DERXWWKHVDOHRISHW         VXEVWDQWLYHFRQWUDFWODZ,QRWKHUZRUGVWKHSDUROHYLGHQFH
IRRGE\,DPVWR:DWNLQVDQG:DWNLQVjVUHVDOHRIWKHSHWIRRG            UXOH GRHV QRW RSHUDWH WR SURKLELW SURRI RI WHUPV RI WKH
WR UHWDLO FXVWRPHUV  2QH FDQ LPDJLQH D GLVWULEXWRUVKLS          DJUHHPHQWLQVWHDGLWSURYLGHVWKDWSDUROWHUPVDUHQRWWHUPV
DJUHHPHQWLQZKLFKWKHVHUYLFHFRPSRQHQWSUHGRPLQDWHVRYHU               RIWKHDJUHHPHQWDWDOO*DOPLVKY&LFFKLQL2KLR6WG
WKH JRRGV FRPSRQHQW EXW LQ WKH W\SLFDO FDVH DV KHUH WKH     1(G,IDZULWWHQFRQWUDFW
VHUYLFHFRPSRQHQWZLOOQRWSUHGRPLQDWHDQGWKHPDMRULW\UXOH            LVFRPSOHWHO\LQWHJUDWHGLWLVXQUHDVRQDEOHDVDPDWWHURIODZ
ZLOO DSSO\ XQGHU 2KLR ODZ DV XQGHU WKH ODZ RI PRVW RWKHU      WRUHO\RQSDUROUHSUHVHQWDWLRQVRUSURPLVHVZLWKLQWKHVFRSH
MXULVGLFWLRQV                                                           RIWKHFRQWUDFWPDGHSULRUWRLWVH[HFXWLRQ%ROOLQJHU,QFY
                                                                         0D\HUVRQ2KLR$SSG1(G
&:DWNLQVjV&ODLPV2I)UDXGDQG3URPLVVRU\(VWRSSHO                      IUDXG +DUULV Y (TXLORQ (QWHUV //& 
                                                                         )6XSSG6'2KLRSURPLVVRU\HVWRSSHO
  7KH GLVWULFW FRXUW JUDQWHG ,DPVjV PRWLRQ IRU VXPPDU\
MXGJPHQW RQ :DWNLQVjV FODLPV RI IUDXG DQG SURPLVVRU\                :H ILQG WKDW WKH ZULWWHQ DJUHHPHQW DW LVVXH KHUH ZDV D
HVWRSSHO:HUHYLHZVXPPDU\MXGJPHQWVGHQRYR3HFNY                 FRPSOHWHLQWHJUDWLRQ8QGHU2KLRODZWKHFRXUWGHWHUPLQHV
%ULGJHSRUW0DFKV,QF)GWK&LU              ZKHWKHU D VDOHV FRQWUDFW LV FRPSOHWHO\ LQWHJUDWHG E\
6XPPDU\MXGJPHQWLVSURSHUZKHQWKHUHLVQRJHQXLQHLVVXH                FRQVLGHULQJWKHmIRXUFRUQHUVRIWKHGRFXPHQWlDQGHYLGHQFH
DV WR DQ\ PDWHULDO IDFW DQG WKH PRYLQJ SDUW\ LV HQWLWOHG WR   H[WULQVLFWRWKHZULWLQJ&LQFLQQDWL%HOO,QFY$QL[WHU%URV
MXGJPHQWDVDPDWWHURIODZ,G                                        ,QF  )6XSSG   6' 2KLR  FLWLQJ
                                                                         &DUPDUJR &DGLOODF &R Y *DUILHOG (QWHUV ,QF  2KLR
   5HDVRQDEOH UHOLDQFH LV DQ HOHPHQW RI ERWK SURPLVVRU\           $SSG1(G+HUHRI
HVWRSSHODQGIUDXG6HH1LOYDUY2VERUQ2KLR$SSG             WKHDJUHHPHQWTXRWHGDERYHSURYLGHVVWURQJHYLGHQFHWKDW
1(GSURPLVVRU\HVWRSSHO'DXS               WKHSDUWLHVLQWHQGHGWKHLUZULWWHQDJUHHPHQWWREHDFRPSOHWH
Y 7RZHU &HOOXODU ,QF  2KLR $SSG             LQWHJUDWLRQ:DWNLQVGRHVQRWSUHVHQWH[WULQVLFHYLGHQFHWR
1(GIUDXG2QWKHIDFWVRIWKLVFDVHZH           VKRZRWKHUZLVH,QVWHDGLWPHUHO\DUJXHVWKDWWKHUHQHZDO
ILQG WKDW :DWNLQVjV UHOLDQFH RQ ,DPVjV UHSUHVHQWDWLRQV ZDV        SURYLVLRQLQWKHZULWWHQDJUHHPHQWGRHVQRWFRQWDLQWKHWHUPV
XQUHDVRQDEOHDVDPDWWHURIODZ7KHUHIRUHZHILQGQRHUURU            RI WKH SURSRVHG UHQHZDO DQG WKDW WKHUHIRUH WKH FRQWUDFW LV
LQWKHGLVWULFWFRXUWjVGHFLVLRQWRJUDQWVXPPDU\MXGJPHQWRQ            RQO\DSDUWLDOLQWHJUDWLRQoILQDOEXWQRWFRPSOHWH
WKHWZRFODLPV
                                                                            :DWNLQVjVDUJXPHQWLVZLWKRXWPHULW,WLVFOHDUIURPWKH
   ,Q WKLV FDVH WKH UHDVRQDEOHQHVV RI :DWNLQVjV UHOLDQFH         WH[WRIWKHUHQHZDOFODXVHWKDWWKHSDUWLHVPHDQWWRPDNHD
GHSHQGVXSRQWKHHIIHFWRIWKHLQWHJUDWLRQFODXVH:KHQD               ILQDODJUHHPHQWDQGWROHDYHWKHWHUPVRIDIXWXUHDJUHHPHQW
ZULWWHQ FRQWUDFW LV WKH ILQDO DQG FRPSOHWH VWDWHPHQW RI WKH     IRUODWHUQHJRWLDWLRQ7KLVFRQFOXVLRQLVPDGHHYHQFOHDUHU
SDUWLHVjDJUHHPHQWZKHQWKDWLVLWLVDFRPSOHWHLQWHJUDWLRQ        ZKHQRQHFRQVLGHUVWKHLQWHJUDWLRQFODXVH$VZHQRWHLQRXU
 WKH SDURO HYLGHQFH UXOH SURKLELWV WKH SDUWLHV IURP            GLVFXVVLRQRI:DWNLQVjVFODLPIRUEUHDFKRIWKHGXW\RIJRRG
LQWURGXFLQJ H[WULQVLF HYLGHQFH RI WKH WHUPV RI WKHLU

                                                                             
                                                                              7KHUH   DUH   H[FHSWLRQV   WR   WKH   SDURO   HYLGHQFH   UXOH   WKH   UHOHYDQW
                                                                         H[FHSWLRQV DUH GLVFXVVHG   LQIUD
