      5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
           3XUVXDQW WR 6L[WK &LUFXLW 5XOH                    0LFK%HOO7HO&RY0)6                     1R
   (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                                                                 ,QWHOHQHWRI0LFKHWDO
               )LOH 1DPH DS




81,7('67$7(6&28572)$33($/6                                      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
             )257+(6,;7+&,5&8,7                                IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW/DQVLQJ
               BBBBBBBBBBBBBBBBB                                 1Rn5LFKDUG$(QVOHQ'LVWULFWsXGJH
                                                                           $UJXHG1RYHPEHU
0,&+,*$1 %(// 7(/(3+21(       ;                                         'HFLGHGDQG)LOHG0D\
&203$1<GED$0(5,7(&+       
0,&+,*$1 ,1&                                             %HIRUH'$8*+75(<DQG0225(&LUFXLWsXGJHV
                                     1R                         &$55'LVWULFWsXGJH
         3ODLQWLII$SSHOODQW  
                                !                                               BBBBBBBBBBBBBBBBB
                               
            Y                 
0)6 ,17(/(1(7 2)                                                                     &2816(/
0,&+,*$1 ,1& 7&*            
                                                        $5*8('  7KHRGRUH $ /LYLQJVWRQ 0$<(5 %52:1
'(752,7 %522.6 ),%(5                                    52:(	0$:&KLFDJR,OOLQRLVIRU$SSHOODQW'DUU\O0
&20081,&$7,216 2)              
                                                        %UDGIRUGs(11(5	%/2&.&KLFDJR,OOLQRLV0LFKDHO$
0,&+,*$1 ,1& 0&,                                     1LFNHUVRQ 2)),&( 2) 7+( $77251(< *(1(5$/
7(/(&20081,&$7,216                                      /DQVLQJ0LFKLJDQIRU$SSHOOHHV21%5,()7KHRGRUH$
&25325$7,21 0&,0(752                                   /LYLQJVWRQ5REHUW0'RZsUsRKQ(0XHQFK'HPHWULRV
                                                         * 0HWURSRXORV 0$<(5 %52:1 52:( 	 0$:
$&&(66 75$160,66,21            
                                                         &KLFDJR ,OOLQRLV sHIIHU\ 9 6WXFNH\ sRKQ 0 'HPSVH\
6(59,&(6 ,1& $7	7           
                                                        ',&.,1621 :5,*+7 /DQVLQJ 0LFKLJDQ 0LFKDHO $
&20081,&$7,216 2)                                        +ROPHV 'HWURLW 0LFKLJDQ IRU $SSHOODQW  'DUU\O 0
                               
0,&+,*$1 ,1& %5(                                     %UDGIRUGsRKQ5+DUULQJWRQs(11(5	%/2&.&KLFDJR
&20081,&$7,216 //&                                 ,OOLQRLV 0LFKDHO $ 1LFNHUVRQ 'DYLG $ 9RJHV +HQU\ s
DQGs2+1 * 675$1' s2+1                                %R\QWRQ 2)),&( 2) 7+( $77251(< *(1(5$/
                                                         /DQVLQJ 0LFKLJDQ $UWKXU s /H9DVVHXU ),6&+(5
& 6+($DQG'$9,' $          
                                                         )5$1./,1	)25''HWURLW0LFKLJDQIRU$SSHOOHHV
69$1'$&RPPLVVLRQHUVRI       
WKH0LFKLJDQ3XEOLF6HUYLFH    
                               
&RPPLVVLRQLQWKHLURIILFLDO  
FDSDFLWLHVDQGQRWDV          
LQGLYLGXDOV                  
        'HIHQGDQWV$SSHOOHHV                               
                              1                               7KH +RQRUDEOH sDPHV * &DUU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
                                                         1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ



                           
1R                   0LFK%HOO7HO&RY0)6                  0LFK%HOO7HO&RY0)6                     1R
                                ,QWHOHQHWRI0LFKHWDO                  ,QWHOHQHWRI0LFKHWDO

                     BBBBBBBBBBBBBBBBB                                FRPSOHWLQJWKHFDOODFRVWXVXDOO\SDLGRQDSHUPLQXWHEDVLV
                                                                      $OWKRXJK  E SXUSRUWV WR H[WHQG UHFLSURFDO
                         23,1,21                                      FRPSHQVDWLRQ WR DOO mWHOHFRPPXQLFDWLRQVl WKH )HGHUDO
                     BBBBBBBBBBBBBBBBB                                &RPPXQLFDWLRQV&RPPLVVLRQWKHH[HFXWLYHDJHQF\FKDUJHG
                                                                      ZLWK WKH GXW\ RI LPSOHPHQWLQJ WKH $FW KDV FRQVWUXHG WKH
  0$57+$ &5$,* '$8*+75(< &LUFXLW sXGJH  7KH                   UHFLSURFDOFRPSHQVDWLRQUHTXLUHPHQWWRDSSO\RQO\WRORFDO
SODLQWLII0LFKLJDQ%HOO7HOHSKRQH&RPSDQ\GRLQJEXVLQHVV            WHOHFRPPXQLFDWLRQVWUDIILF6HH&)5Dm7KH
DV$PHULWHFK0LFKLJDQ,QFILOHGDIHGHUDOODZVXLWSXUVXDQW         SURYLVLRQVRIWKLVVXESDUWDSSO\WRUHFLSURFDOFRPSHQVDWLRQ
WRWKH7HOHFRPPXQLFDWLRQV$FWRI86&              IRUWUDQVSRUWDQGWHUPLQDWLRQRIWHOHFRPPXQLFDWLRQVWUDIILF
E VHHNLQJ D GHFODUDWRU\ MXGJPHQW DQG LQMXQFWLYH UHOLHI     EHWZHHQ >ORFDO H[FKDQJH FDUULHUV@ DQG RWKHU
DJDLQVWVHYHUDOFRPSHWLQJORFDOWHOHFRPPXQLFDWLRQVFDUULHUV           WHOHFRPPXQLFDWLRQVFDUULHUVl
DQG WKH 0LFKLJDQ 3XEOLF 6HUYLFH &RPPLVVLRQ  7KH VWDWH
FRPPLVVLRQ KDG HDUOLHU UHQGHUHG DQ RUGHU GHFODULQJ WKDW           6HFWLRQ  RI WKH $FW GHVFULEHV WKH SURFHGXUH ORFDO
$PHULWHFK RZHG WKH FRPSHWLQJ FDUULHUV UHFLSURFDO                 H[FKDQJHFDUULHUVPXVWXWLOL]HLQQHJRWLDWLQJWKHUHFLSURFDO
FRPSHQVDWLRQ IRU FDOOV WR LQWHUQHW VHUYLFH SURYLGHUV WKDW      FRPSHQVDWLRQDUUDQJHPHQWVDQGLQWHUFRQQHFWLRQDJUHHPHQWV
RULJLQDWHGDW$PHULWHFKDQGWHUPLQDWHGZLWKWKHFRPSHWLQJ             E\ ZKLFK WKH\ ZLOO FRPSHQVDWH HDFK RWKHU IRU WKH XVH RI
FDUULHUV  $IWHU ILUVW GHQ\LQJ WKH FRPPLVVLRQjV PRWLRQ WR     DQRWKHUQHWZRUN)LUVWWKHFDUULHUVPXVWDWWHPSWWRUHDFKDQ
GLVPLVVWKHFDVHRQMXULVGLFWLRQDOJURXQGVWKHGLVWULFWFRXUW        DJUHHPHQW WKURXJK QHJRWLDWLRQ  $W DQ\ WLPH LQ WKH
JUDQWHG VXPPDU\ MXGJPHQW WR WKH GHIHQGDQWV  )LQGLQJ QR       GLVFXVVLRQVKRZHYHUDSDUW\PD\DVNWKHDSSURSULDWHVWDWH
HUURULQWKDWILQDOGHWHUPLQDWLRQZHQRZDIILUP                     UHJXODWRU\FRPPLVVLRQWRSDUWLFLSDWHDVDPHGLDWRU6HH
                                                                      86&DDQG,IQRDJUHHPHQWFDQEHUHDFKHG
   )$&78$/$1'352&('85$/%$&.*5281'                                  YROXQWDULO\WKH$FWSURYLGHVIRUFRPSXOVRU\DUELWUDWLRQE\WKH
                                                                      VWDWH FRPPLVVLRQ  6HH  86&  E  2QFH DQ
          ,7HOHFRPPXQLFDWLRQV$FW)UDPHZRUN                        DJUHHPHQWKDVEHHQH[HFXWHGLWPXVWWKHQEHVXEPLWWHGWRWKH
                                                                      VWDWHFRPPLVVLRQIRUDSSURYDO6HH86&H7KH
   7KH7HOHFRPPXQLFDWLRQV$FWRI3XE/1R               VWDWHFRPPLVVLRQSRVVHVVHVWKHDXWKRULW\WRUHMHFWDJUHHPHQWV
6WDW86&EHQGHDYRUVWRLQMHFW         XQGHUOLPLWHGFLUFXPVWDQFHVVHH86&HDQG
FRPSHWLWLRQLQWRWKHPDUNHWIRUORFDOWHOHSKRQHVHUYLFH6HH         LIDVWDWHFRPPLVVLRQIDLOVWRFDUU\RXWLWVUHVSRQVLELOLWLHVWKH
$7	7&RUSY,D8WLOV%G86,Q           )HGHUDO&RPPXQLFDWLRQV&RPPLVVLRQZLOOSUHHPSWWKHVWDWH
RUGHU WR GR VR WKH $FW UHTXLUHV DOO WHOHFRPPXQLFDWLRQV       FRPPLVVLRQjVMXULVGLFWLRQDQGDFWLQLWVVWHDG6HH86&
FDUULHUVWRLQWHUFRQQHFWWKHLUQHWZRUNVVRWKDWFXVWRPHUVRI          H$SDUW\DJJULHYHGE\DmGHWHUPLQDWLRQlRIDVWDWH
GLIIHUHQW FDUULHUV FDQ FDOO RQH DQRWKHU  6HH  86&      FRPPLVVLRQ XQGHU   PD\ EULQJ DQ DFWLRQ LQ IHGHUDO
 D  ,QFXPEHQW ORFDO H[FKDQJH FDUULHUV RU UDWKHU   GLVWULFW FRXUW  6HH  86&  H  6WDWH FRXUWV
RZQHUVRIDORFDOWHOHSKRQHQHWZRUNPXVWSURYLGHQHWZRUN             KRZHYHUGRQRWKDYHMXULVGLFWLRQWRUHYLHZGHFLVLRQVRIVWDWH
DFFHVVWRFRPSHWLQJORFDOH[FKDQJHFDUULHUVVHH86&            FRPPLVVLRQV mDSSURYLQJ RU UHMHFWLQJ DQ DJUHHPHQWl XQGHU
FDQGDOOORFDOH[FKDQJHFDUULHUVPXVWmHVWDEOLVK          6HH86&H
UHFLSURFDOFRPSHQVDWLRQDUUDQJHPHQWVIRUWKHWUDQVSRUWDQG
WHUPLQDWLRQRIWHOHFRPPXQLFDWLRQVl86&E
7KXV IRU H[DPSOH ZKHQ D FXVWRPHU RI &DUULHU $ FDOOV D
FXVWRPHU RI &DUULHU % &DUULHU $ PXVW SD\ &DUULHU % IRU
1R                   0LFK%HOO7HO&RY0)6                 0LFK%HOO7HO&RY0)6                     1R
                                ,QWHOHQHWRI0LFKHWDO                 ,QWHOHQHWRI0LFKHWDO

               ,,+LVWRU\RI3UHVHQW'LVSXWH                       MXGJPHQWWRWKHGHIHQGDQWVRQ$PHULWHFKjVFODLPVOHDGLQJWR
                                                                     WKLVDSSHDOE\WKHSODLQWLII
   7KHSODLQWLIIDQLQFXPEHQWORFDOH[FKDQJHFDUULHUHQWHUHG
LQWRDQXPEHURILQWHUFRQQHFWLRQDJUHHPHQWVZLWKGHIHQGDQWV            :HKHDUGRUDODUJXPHQWLQWKLVPDWWHUPRUHWKDQWZR\HDUV
0)6 ,QWHOHQHW RI 0LFKLJDQ ,QF %URRNV )LEHU                  DJR EXW VXEVHTXHQWO\ LVVXHG DQ RUGHU KROGLQJ WKH FDVH LQ
&RPPXQLFDWLRQV RI 0LFKLJDQ ,QF 0&,                            DEH\DQFHSHQGLQJDGHFLVLRQE\WKH8QLWHG6WDWHV6XSUHPH
7HOHFRPPXQLFDWLRQV &RUSRUDWLRQ DQG 0&,0HWUR $FFHVV               &RXUW LQ DQRWKHU GLVSXWH WKDW LQYROYHG D MXULVGLFWLRQDO
7UDQVPLVVLRQ 6HUYLFHV ,QF $7	7 &RPPXQLFDWLRQV RI             GLVDJUHHPHQWLGHQWLFDOWRWKHRQHSUHVHQWHGWRXVKHUH7KH
0LFKLJDQ ,QF 7&* 'HWURLW DQG %5( &RPPXQLFDWLRQV           &RXUW UHOHDVHG WKDW RSLQLRQ RQ 0D\  VHH 9HUL]RQ
//&7KRVHDJUHHPHQWVLQFOXGHGSURYLVLRQVUHTXLULQJWKH           0G,QFY3XE6HUY&RPPjQRI0G86
SDUWLHVWRSD\UHFLSURFDOFRPSHQVDWLRQWRHDFKRWKHU)RURYHU      6&W   DQG WKH SDUWLHV KDYH SURYLGHG XV ZLWK
D \HDU XQGHU WKH DJUHHPHQWV WKH SDUWLHV GLG LQ IDFW SD\   VXSSOHPHQWDO DXWKRULWLHV WR DLG XV LQ RXU GHFLVLRQPDNLQJ
UHFLSURFDO FRPSHQVDWLRQ IRU FDOOV PDGH WR LQWHUQHW VHUYLFH    )LQDOO\RQ'HFHPEHUWKHFRUSRUDWHGHIHQGDQWVILOHG
SURYLGHUV2QsXO\KRZHYHU$PHULWHFKQRWLILHGWKH         ZLWK WKLV FRXUW D QRWLFH RI D UXOLQJ E\ WKH 8QLWHG 6WDWHV
FRPSHWLQJ FDUULHUV WKDW LW ZRXOG QR ORQJHU SD\ UHFLSURFDO    %DQNUXSWF\&RXUWIRUWKH6RXWKHUQ'LVWULFWRI1HZ<RUNWKDW
FRPSHQVDWLRQ IRU ORFDO FDOOV SODFHG E\ LWV FXVWRPHUV WR      PRGLILHG WKH DXWRPDWLF VWD\ LQ D SURFHHGLQJ LQYROYLQJ
LQWHUQHWVHUYLFHSURYLGHUVZKRZHUHFOLHQWVRIWKHFRPSHWLQJ         :RUOG&RP,QFWKHVXFFHVVRUWRWKHFRUSRUDWHGHIHQGDQWV
FDUULHUVEHFDXVHVXFKFDOOVZHUHXOWLPDWHO\LQWHUVWDWHLQQDWXUH     DQG UHFRJQL]HG WKDW WKHUH LV QRZ QR LPSHGLPHQW WR RXU
DQGWKXVQRWVXEMHFWWRWKHUHFLSURFDOFRPSHQVDWLRQSURYLVLRQV       UHVROXWLRQRIWKLVDSSHDO
RIWKH$FW
                                                                                              ',6&866,21
   7KH FRPSHWLQJ FDUULHUV HLWKHU ILOHG FRPSODLQWV ZLWK WKH
0LFKLJDQ3XEOLF6HUYLFH&RPPLVVLRQRULQWHUYHQHGLQVXFK                             ,)HGHUDO&RXUWsXULVGLFWLRQ
DFWLRQVFKDOOHQJLQJ$PHULWHFKjVGHFLVLRQWRFHDVHSD\PHQW
7KHFRPSODLQWVZHUHFRQVROLGDWHGDQGDIWHUUHYLHZLQJWKH              ,QLWLDOO\SDUWLHVWRWKLVDSSHDOGLVSXWHGWKHMXULVGLFWLRQRI
SDUWLHVjLQWHUFRQQHFWLRQDJUHHPHQWVWKHFRPPLVVLRQHUVRIWKH        WKH IHGHUDO FRXUWV WR HQWHUWDLQ WKH FDVH XQGHU WKH $FW
VWDWHUHJXODWRU\ERG\LVVXHGDQRUGHULQVWUXFWLQJ$PHULWHFKWR       6SHFLILFDOO\WKHLQGLYLGXDOPHPEHUVRIWKH0LFKLJDQ3XEOLF
UHOHDVHEDFNFRPSHQVDWLRQWRWKHFRPSHWLQJORFDOH[FKDQJH            6HUYLFH &RPPLVVLRQ FRQWHQGHG WKDW WKH $FW LWVHOI JUDQWHG
FDUULHUVDQGWRUHVXPHSD\PHQWRIUHFLSURFDOFRPSHQVDWLRQ           IHGHUDO FRXUWV MXULVGLFWLRQ RQO\ WR UHYLHZ FRPPLVVLRQ
$PHULWHFK ILOHG DQ DFWLRQ ZLWK WKH IHGHUDO GLVWULFW FRXUW    GHFLVLRQVDSSURYLQJRUUHMHFWLQJLQWHUFRQQHFWLRQDJUHHPHQWV
VHHNLQJ D GHFODUDWRU\ MXGJPHQW DQG LQMXQFWLRQ DJDLQVW          QRW WR LQWHUSUHW RU HQIRUFH WKHP  )XUWKHUPRUH WKH
HQIRUFHPHQWRIWKDWGHWHUPLQDWLRQQDPLQJDVGHIHQGDQWVWKH          FRPPLVVLRQHUV DVVHUWHG WKDW WKH\ ZHUH LPPXQH IURP VXLW
FRPSHWLQJFDUULHUVDQGWKHFRPPLVVLRQHUVRIWKH0LFKLJDQ             SXUVXDQW WR (OHYHQWK $PHQGPHQW VRYHUHLJQ LPPXQLW\
3XEOLF6HUYLFH&RPPLVVLRQ$IWHUUHQGHULQJDQRUGHUWKDW            SULQFLSOHV
GHQLHGDPRWLRQWRGLVPLVVILOHGE\WKHFRPPLVVLRQHUVIRU
ODFNRIMXULVGLFWLRQDQGIDLOXUHWRVWDWHDFODLPVHH0LFK%HOO       7KURXJK LWV GHFLVLRQ LQ 9HUL]RQ 0DU\ODQG WKH 6XSUHPH
7HO&RY0)6,QWHOHQHWRI0LFK,QF)6XSSG         &RXUW KDV QRZ GHILQLWLYHO\ DQVZHUHG WKHVH MXULVGLFWLRQDO
:' 0LFK  WKH GLVWULFW FRXUW JUDQWHG VXPPDU\         FKDOOHQJHV IRU XV  ,Q WKDW DQDORJRXV DSSHDO WKH &RXUW
                                                                     FRQFOXGHGDVKDGWKLVFLUFXLWSUHYLRXVO\LQ*7(1RUWK,QF
                                                                     Y 6WUDQG  )G  WK &LU  WKDW WKH JHQHUDO
1R                   0LFK%HOO7HO&RY0)6                   0LFK%HOO7HO&RY0)6                        1R
                                ,QWHOHQHWRI0LFKHWDO                   ,QWHOHQHWRI0LFKHWDO

IHGHUDOTXHVWLRQMXULVGLFWLRQRI86&FRQIHUUHG            EDVLVIRULWVPRWLRQWKHEXUGHQVKLIWVWRWKHQRQPRYLQJSDUW\
XSRQGLVWULFWFRXUWVWKHSRZHUWRUHVROYHWKHVHGLVSXWHV$V          WR GHPRQVWUDWH ZK\ VXPPDU\ MXGJPHQW ZRXOG EH
VWDWHGE\WKH&RXUW                                                   LQDSSURSULDWH6HH&HORWH[&RUSY&DWUHWW86
                                                                       ,QPDNLQJLWVGHWHUPLQDWLRQWKHFRXUWPXVW
     >7KH SODLQWLIIjV@ FODLP WKXV IDOOV ZLWKLQ  86&        YLHZDOOHYLGHQFHDQGDQ\IDFWXDOLQIHUHQFHVLQWKHOLJKWPRVW
  
VJHQHUDOJUDQWRIMXULVGLFWLRQDQGQRWKLQJLQ         IDYRUDEOH WR WKH QRQPRYLQJ SDUW\  6HH 0DWVXVKLWD (OHF
  >WKH$FW@SXUSRUWVWRVWULSWKLVMXULVGLFWLRQ>7KH$FW@            ,QGXV&RY=HQLWK5DGLR&RUS86
  SURYLGHVIRUIHGHUDOUHYLHZRIDQDJUHHPHQWZKHQDVWDWH
  FRPPLVVLRQmPDNHVDGHWHUPLQDWLRQ XQGHU>86&                      7KHGLVWULFWFRXUWjVVXPPDU\MXGJPHQWGHFLVLRQLQWKLVFDVH
  @l,IWKLVGRHVQRWLQFOXGHWKHLQWHUSUHWDWLRQRU       ZDV LWVHOI WKH UHVXOW RI D UHYLHZ RI D UXOLQJ RI D VWDWH
  HQIRUFHPHQWRIDQLQWHUFRQQHFWLRQDJUHHPHQWWKHQ>WKH               DGPLQLVWUDWLYHERG\,QDGGUHVVLQJWKHVXEVWDQWLYHLVVXHLQ
  $FW@ PHUHO\ PDNHV VRPH RWKHU DFWLRQV E\ VWDWH                 WKLVFDVHoZKHWKHUORFDOH[FKDQJHFDUULHUVDUHREOLJDWHGWR
  FRPPLVVLRQV UHYLHZDEOH LQ IHGHUDO FRXUW  7KLV LV QRW        WHQGHUUHFLSURFDOFRPSHQVDWLRQIRUWKHLUFXVWRPHUjVWHOHSKRQH
  HQRXJKWRHOLPLQDWHMXULVGLFWLRQXQGHU                       FDOOV WR LQWHUQHW VHUYLFH SURYLGHUV ZKR DUH VXEVFULEHUV RI
                                                                       FRPSHWLQJFDUULHUVRXUGHQRYRUHYLHZWKHUHIRUHUHTXLUHV
9HUL]RQ0G86DWBBB6&WDW                       XVDOVRWRHPSOR\WKHSURSHUVWDQGDUGRUVWDQGDUGVIRUUHYLHZ
                                                                       RI WKH XQGHUO\LQJ VWDWH DGPLQLVWUDWLYH UXOLQJ  %HFDXVH
  0RUHRYHUWKH9HUL]RQ0DU\ODQGRSLQLRQH[SODLQVWKDWD               DUULYLQJ DW D GHFLVLRQ LQ WKHVH GLVSXWHV WKXV LQYROYHV DQ
UHTXHVW IRU GHFODUDWRU\ DQG LQMXQFWLYH UHOLHI DJDLQVW WKH       XQGHUVWDQGLQJRIWKHLQWHUSOD\EHWZHHQIHGHUDODQGVWDWHODZ
FRPPLVVLRQHUVRIDVWDWHUHJXODWRU\ERG\LVQRWEDUUHGE\WKH          LW LV QRW VXUSULVLQJ WKDW D PDMRULW\ RI RXU VLVWHU FRXUWV RI
(OHYHQWK$PHQGPHQWjVEDQRQVXLWVDJDLQVWDVRYHUHLJQVWDWH           DSSHDOWKDWKDYHDGGUHVVHGVLPLODUFODLPVKDYHXWLOL]HGDWZR
,QVWHDGWKHZHOOHVWDEOLVKHGGRFWULQHRI([SDUWH<RXQJ          WLHUHGUHYLHZSURFHGXUH6HHHJ6RXWKZHVWHUQ%HOO7HO&R
86DOORZVWKHSODLQWLIIWRmSURFHHGDJDLQVWWKH          Y3XE8WLO&RPPjQRI7H[)GWK&LU
LQGLYLGXDOFRPPLVVLRQHUVLQWKHLURIILFLDOFDSDFLWLHVl         *7(6RXWK,QFY0RUULVRQ)GWK&LU
9HUL]RQ0G86DWBBB6&WDW6HHDOVR             86:HVW&RPPXQLFDWLRQVY0)6,QWHOHQHW,QF)G
0LFK%HOO7HO&RY&OLPD[7HO&R)GWK         WK&LU%XWVHH,OO%HOO7HO&RY:RUOGFRP
&LU   %RXQG E\ WKHVH GLUHFWLYHV IURP WKH 6XSUHPH       7HFKV,QF)GWK&LU
&RXUW ZH QRZ SURFHHG WR D GLVFXVVLRQ RI WKH VXEVWDQWLYH
GLVSXWHEHIRUHXV                                                       7KRVHFRXUWVKDYHKHOGWKDWWKHIHGHUDOMXGLFLDU\VKRXOGILUVW
                                                                       UHYLHZGHQRYRZKHWKHUDVWDWHSXEOLFVHUYLFHFRPPLVVLRQjV
                   ,,6WDQGDUGVRI5HYLHZ                            RUGHUV FRPSO\ ZLWK WKH UHTXLUHPHQWV RI WKH
                                                                       7HOHFRPPXQLFDWLRQV$FW,IQRLOOHJDOLW\LVXQFRYHUHGGXULQJ
   :HUHYLHZGHQRYRDGLVWULFWFRXUWRUGHUJUDQWLQJVXPPDU\           VXFKDUHYLHZWKHTXHVWLRQRIZKHWKHUWKHVWDWHFRPPLVVLRQ
MXGJPHQW6HH&RFNUHOY6KHOE\&RXQW\6FK'LVW)G           FRUUHFWO\ LQWHUSUHWHG WKH FKDOOHQJHG LQWHUFRQQHFWLRQ
WK&LUFHUWGHQLHG6&W         DJUHHPHQW PXVW WKHQ EH DQDO\]HG EXW XQGHU WKH PRUH
5XOHFRIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHSURYLGHV            GHIHUHQWLDODUELWUDU\DQGFDSULFLRXVVWDQGDUGRIUHYLHZXVXDOO\
WKDW VXPPDU\ MXGJPHQW LV DSSURSULDWH ZKHUH mWKHUH LV QR        DFFRUGHGVWDWHDGPLQLVWUDWLYHERGLHVjDVVHVVPHQWVRIVWDWHODZ
JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKHPRYLQJSDUW\       SULQFLSOHV6HH6RXWKZHVWHUQ%HOO7HO&R)GDW
LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl2QFHWKHSDUW\         *7(6RXWK,QF)GDW86:HVW&RPPXQLFDWLRQV
VHHNLQJ VXPPDU\ MXGJPHQW KDV LQIRUPHG WKH FRXUW RI WKH
1R                      0LFK%HOO7HO&RY0)6                     0LFK%HOO7HO&RY0)6                      1R
                                   ,QWHOHQHWRI0LFKHWDO                      ,QWHOHQHWRI0LFKHWDO

 )G DW   *LYHQ WKH LQKHUHQW ORJLF RI D IHGHUDO          ZKHUH SDUWLHV WR LQWHUFRQQHFWLRQ DJUHHPHQWV GR QRW
DSSHOODWHFRXUWUHYLHZLQJGHQRYRFRPSOLDQFHZLWKIHGHUDO                    YROXQWDULO\DJUHHRQDQLQWHUFDUULHUFRPSHQVDWLRQPHFKDQLVP
ODZDQGDOORZLQJVWDWHDJHQFLHVZLGHUGHIHUHQFHLQVWDWHODZ                 IRU ,63ERXQG WUDIILF VWDWH FRPPLVVLRQV QRQHWKHOHVV PD\
GHWHUPLQDWLRQV ZH DOVR DGRSW WKH ELIXUFDWHG VWDQGDUG                  GHWHUPLQHWKDWUHFLSURFDOFRPSHQVDWLRQVKRXOGEHSDLGIRU
HPSOR\HGE\WKHPDMRULW\RIRWKHUFLUFXLWV                                  WUDIILFl  ,G DW    7KH &RPPLVVLRQ WKXV GHFODUHG WKDW
                                                                             QRWKLQJ LQ LWV UXOLQJ mQHFHVVDULO\ VKRXOG EH FRQVWUXHG WR
                            ,,,$QDO\VLV                                   TXHVWLRQDQ\GHWHUPLQDWLRQDVWDWHFRPPLVVLRQKDVPDGHRU
                                                                             PD\PDNHLQWKHIXWXUHWKDWSDUWLHVKDYHDJUHHGWRWUHDW,63
  $&RPSOLDQFHZLWKWKH5HTXLUHPHQWVRI)HGHUDO/DZ                        ERXQGWUDIILFDVORFDOWUDIILFXQGHUH[LVWLQJLQWHUFRQQHFWLRQ
                                                                             DJUHHPHQWVl  ,G DW    ,Q FRQFOXVLRQ WKH &RPPLVVLRQ
   3ULRUWRWKHGLVWULFWFRXUWMXGJPHQWLQWKLVFDVHWKH)HGHUDO            SURFODLPHG
&RPPXQLFDWLRQV &RPPLVVLRQ UHQGHUHG DQ DGPLQLVWUDWLYH
UXOLQJ SHUWLQHQW WR UHFLSURFDO FRPSHQVDWLRQ IRU LQWHUQHW                 $ VWDWH FRPPLVVLRQjV GHFLVLRQ WR LPSRVH UHFLSURFDO
VHUYLFH SURYLGHU ,63ERXQG FDOOV HQWLWOHG ,Q UH                        FRPSHQVDWLRQREOLJDWLRQVLQDQDUELWUDWLRQSURFHHGLQJ
,PSOHPHQWDWLRQRIWKH/RFDO&RPSHWLWLRQ3URYLVLRQVLQWKH                      RU D VXEVHTXHQW VWDWH FRPPLVVLRQ GHFLVLRQ WKDW WKRVH
7HOHFRPPXQLFDWLRQV$FWRI,QWHUFDUULHU&RPSHQVDWLRQ                      REOLJDWLRQV HQFRPSDVV ,63ERXQG WUDIILF  GRHV QRW
IRU ,63%RXQG 7UDIILF  )&&5                      FRQIOLFWZLWKDQ\&RPPLVVLRQUXOHUHJDUGLQJ,63ERXQG
5XOLQJ,QWKDWUXOLQJWKH&RPPLVVLRQFRQFOXGHGWKDWZKLOH                 WUDIILF%\WKHVDPHWRNHQLQWKHDEVHQFHRIJRYHUQLQJ
,63ERXQG WUDIILF LV mMXULVGLFWLRQDOO\PL[HGl LW LV ODUJHO\             IHGHUDO ODZ VWDWH FRPPLVVLRQV DOVR DUH IUHH QRW WR
LQWHUVWDWH UDWKHU WKDQ LQWUDVWDWH RU ORFDO LQ QDWXUH  ,G DW     UHTXLUHWKHSD\PHQWRIUHFLSURFDOFRPSHQVDWLRQIRUWKLV
7KHDJHQF\FRQWLQXHGKRZHYHUWRDGGUHVVVWDWH                    WUDIILFDQGWRDGRSWDQRWKHUFRPSHQVDWLRQPHFKDQLVP
UHJXODWRU\FRPPLVVLRQILQGLQJVUHJDUGLQJWKHDSSOLFDWLRQRI
UHFLSURFDO FRPSHQVDWLRQ SURYLVLRQV RI LQWHUFRQQHFWLRQ                    ,GDWFLWDWLRQVRPLWWHGHPSKDVLVDGGHG
DJUHHPHQWV WR ,63ERXQG WUDIILF  ,Q GRLQJ VR WKH
&RPPLVVLRQQRWHGWKDWLWKDGLWVHOIWUHDWHG,63ERXQGWUDIILF                   6XEVHTXHQWO\ WKH &RXUW RI $SSHDOV IRU WKH 'LVWULFW RI
DV WKRXJK LW ZHUH ORFDO VLQFH   6HH LG                  &ROXPELDYDFDWHGWKLV,63UXOLQJDQGUHPDQGHGWKHPDWWHUWR
&RQVHTXHQWO\EHFDXVHQRRIILFLDO&RPPLVVLRQUXOHKDGEHHQ                   WKH)HGHUDO&RPPXQLFDWLRQV&RPPLVVLRQZLWKLQVWUXFWLRQV
SURPXOJDWHGSURYLGLQJWKDW,63ERXQGWUDIILFLVLQWHUVWDWHDQG              WR SURYLGH D PRUH VDWLVIDFWRU\ H[SODQDWLRQ RI ZK\ ORFDO
EHFDXVHHYHQWKH$FWLWVHOIGRHVQRWDGGUHVVWKLVLVVXHWKH                 H[FKDQJHFDUULHUVWKDWWHUPLQDWHFDOOVWR,63VDUHQRWSURSHUO\
IHGHUDO DJHQF\ IRXQG mQR UHDVRQ WR LQWHUIHUH ZLWK VWDWH              VHHQDVWHUPLQDWLQJORFDOWHOHFRPPXQLFDWLRQVWUDIILF6HH%HOO
FRPPLVVLRQILQGLQJVDVWRZKHWKHUUHFLSURFDOFRPSHQVDWLRQ                    $WO 7HO &RV Y )&&  )G  '& &LU   7KH
SURYLVLRQVRILQWHUFRQQHFWLRQDJUHHPHQWVDSSO\WR,63ERXQG                  IROORZLQJ \HDU LQ ,Q UH ,PSOHPHQWDWLRQ RI WKH /RFDO
WUDIILFl,GDW                                                      &RPSHWLWLRQ 3URYLVLRQV LQ WKH 7HOHFRPPXQLFDWLRQV $FW RI
                                                                             ,QWHUFDUULHU&RPSHQVDWLRQIRU,63%RXQG7UDIILF
  )XUWKHUPRUHWKH&RPPLVVLRQUHFRJQL]HGWKDWLQGLYLGXDO                     )&&5,635HPDQG2UGHUWKH&RPPLVVLRQ
SDUWLHV mPD\ UHDVRQDEO\ KDYH DJUHHG IRU WKH SXUSRVHV RI             UHLVVXHG LWV UXOLQJ WKLV WLPH VSHFLI\LQJ WKDW  86&
GHWHUPLQLQJZKHWKHUUHFLSURFDOFRPSHQVDWLRQVKRXOGDSSO\WR                  EJHQHUDOO\REOLJDWHVDOOORFDOH[FKDQJHFDUULHUVmWR
,63ERXQGWUDIILFWKDWVXFKWUDIILFVKRXOGEHWUHDWHGLQWKH                HVWDEOLVK UHFLSURFDO FRPSHQVDWLRQ DUUDQJHPHQWV IRU WKH
VDPHPDQQHUDVORFDOWUDIILFl,GDW/LNHZLVHm>H@YHQ              WUDQVSRUWDQGWHUPLQDWLRQRIWHOHFRPPXQLFDWLRQVl$FFRUGLQJ
1R                     0LFK%HOO7HO&RY0)6                  0LFK%HOO7HO&RY0)6                      1R
                                  ,QWHOHQHWRI0LFKHWDO                    ,QWHOHQHWRI0LFKHWDO

WR WKH UXOLQJ WKLV VWDWXWRU\ SURYLVLRQ RQ LWV IDFH UHTXLUHV     ERXQGWUDIILFIRUWKHSHULRGSULRUWRWKHHIIHFWLYHGDWHRI
ORFDO H[FKDQJH FDUULHUV WR SURYLGH IRU VXFK UHFLSURFDO               WKHLQWHULPUHJLPHZHDGRSWKHUH
SD\PHQWV mIRU WUDQVSRUW DQG WHUPLQDWLRQ RI DOO
WHOHFRPPXQLFDWLRQV WUDIILFl m>X@QOHVV VXEMHFW WR IXUWKHU            ,GDWHPSKDVLVDGGHG7KXVWKH,635HPDQG2UGHU
OLPLWDWLRQl,635HPDQG2UGHUDWHPSKDVLVLQRULJLQDO            UHVXOW VKRXOG KDYH QR EHDULQJ RQ WKH SUHVHQW GLVSXWH WKDW
                                                                          SUHGDWHVWKDWUXOLQJ
  7KH&RPPLVVLRQWKHQKRZHYHUFRQFOXGHGWKDWMXVWVXFK
DQH[FHSWLRQZDVmFDUYHGRXWlIURPWKHJHQHUDOUHTXLUHPHQW                  )XUWKHUPRUHWKHUXOLQJLWVHOIZDVVHYHUHO\XQGHUFXWE\WKH
IRU,63ERXQGWUDIILFE\86&JZKLFKSURYLGHV              &RXUWRI$SSHDOVIRUWKH'&&LUFXLWLQ:RUOG&RP,QFY
LQUHOHYDQWSDUW                                                         )HGHUDO&RPPXQLFDWLRQV&RPPLVVLRQ)G'&
                                                                          &LU,QWKDWGHFLVLRQWKHFRXUWRQFHDJDLQUHPDQGHG
  2QRUDIWHU)HEUXDU\HDFKORFDOH[FKDQJHFDUULHU              WKHPDWWHUWRWKH)HGHUDO&RPPXQLFDWLRQV&RPPLVVLRQIRU
  WRWKHH[WHQWLWSURYLGHVZLUHOLQHVHUYLFHVVKDOOSURYLGH              IXUWKHUFRQVLGHUDWLRQ,QGRLQJVRWKHFRXUWQRWHGWKDWWKH
  H[FKDQJH DFFHVV LQIRUPDWLRQ DFFHVV DQG H[FKDQJH                  VROHEDVLVIRUWKHDJHQF\jVGHFLVLRQZDVWKHEHOLHIWKDWWKH
  VHUYLFHV IRUVXFKDFFHVVWRLQWHUH[FKDQJHFDUULHUVDQG                UHVXOWZDVPDQGDWHGE\WKHSURYLVLRQVRI86&J
  LQIRUPDWLRQ VHUYLFH SURYLGHUV LQ DFFRUGDQFH ZLWK WKH              QHYHUWKHOHVVWKHSDQHOFRQFOXGHGWKDWmQRWKLQJLQJ
  VDPHHTXDODFFHVVDQGQRQGLVFULPLQDWRU\LQWHUFRQQHFWLRQ                 VHHPV WR LQYLWH WKH &RPPLVVLRQjV UHDGLQJl  ,G DW 
  UHVWULFWLRQV DQG REOLJDWLRQV LQFOXGLQJ UHFHLSW RI                 &RQVHTXHQWO\ m J GRHV QRW SURYLGH D EDVLV IRU WKH
  FRPSHQVDWLRQ WKDW DSSO\ WR VXFK FDUULHU RQ WKH GDWH            &RPPLVVLRQjVDFWLRQl,GDW
  LPPHGLDWHO\SUHFHGLQJ)HEUXDU\XQGHUDQ\FRXUW
  RUGHUFRQVHQWGHFUHHRUUHJXODWLRQRUGHURUSROLF\RI                  5HJDUGOHVV RI WKH YLWDOLW\ RU FRUUHFWQHVV RI WKH )HGHUDO
  WKH&RPPLVVLRQXQWLOVXFKUHVWULFWLRQVDQGREOLJDWLRQV                 &RPPXQLFDWLRQV &RPPLVVLRQjV XOWLPDWH GHWHUPLQDWLRQ
  DUHH[SOLFLWO\VXSHUVHGHGE\UHJXODWLRQVSUHVFULEHGE\WKH              UHJDUGLQJ UHFLSURFDO FRPSHQVDWLRQ IRU ,63ERXQG
  &RPPLVVLRQDIWHU)HEUXDU\                                      WHOHFRPPXQLFDWLRQV WUDIILF WKH DJHQF\jV SURFODPDWLRQV
                                                                          FRQFHUQLQJWKHDXWKRULW\RIVWDWHDGPLQLVWUDWLYHERGLHVLQWKLV
(PSKDVLVDGGHG$FFRUGLQJO\WKH&RPPLVVLRQDIILUPHGLWV               DUHDRIWKHODZUHPDLQLQVWUXFWLYH7KHIHGHUDODJHQF\KDV
 UXOLQJ mWKDW ,63ERXQG WUDIILF LV QRW VXEMHFW WR WKH        QRWHG WKDW LW LWVHOI KDV \HW WR SURPXOJDWH DQ RIILFLDO UXOH
UHFLSURFDO FRPSHQVDWLRQ REOLJDWLRQV RI VHFWLRQ El           JRYHUQLQJVXFKUHFLSURFDOFRPSHQVDWLRQ6HH5XOLQJDW
,63 5HPDQG 2UGHU DW    1HYHUWKHOHVV WKH DJHQF\ GLG          'XHWRWKLVFLUFXPVWDQFHDVZHOODVWKHUHDOL]DWLRQWKDW
SURYLGH WKDW LWV UXOLQJ LQ WKH UHPDQG RUGHU ZDV WR KDYH         WKH $FW DOVR GRHV QRW DGGUHVV WKH LVVXH WKH )HGHUDO
SURVSHFWLYHHIIHFWRQO\$VVWDWHGE\WKH&RPPLVVLRQ                    &RPPXQLFDWLRQV&RPPLVVLRQKDVGHFODUHGWKDWLWILQGVmQR
                                                                          UHDVRQ WR LQWHUIHUH ZLWK VWDWH FRPPLVVLRQ ILQGLQJV DV WR
  7KH LQWHULP FRPSHQVDWLRQ UHJLPH ZH HVWDEOLVK KHUH                 ZKHWKHU UHFLSURFDO FRPSHQVDWLRQ SURYLVLRQV RI
  DSSOLHV DV FDUULHUV UHQHJRWLDWH H[SLUHG RU H[SLULQJ              LQWHUFRQQHFWLRQ DJUHHPHQWV DSSO\ WR ,63ERXQG WUDIILF
  LQWHUFRQQHFWLRQ DJUHHPHQWV  ,W GRHV QRW DOWHU H[LVWLQJ          SHQGLQJ DGRSWLRQ RI D UXOH HVWDEOLVKLQJ DQ DSSURSULDWH
  FRQWUDFWXDOREOLJDWLRQVH[FHSWWRWKHH[WHQWWKDWSDUWLHV              LQWHUVWDWH FRPSHQVDWLRQ PHFKDQLVPl  ,G DW  
  DUH HQWLWOHG WR LQYRNH FRQWUDFWXDO FKDQJHRIODZ                   )XUWKHUPRUH m>D@OWKRXJK UHFLSURFDO FRPSHQVDWLRQ LV
  SURYLVLRQV  7KLV 2UGHU GRHV QRW SUHHPSW DQ\ VWDWH              PDQGDWHGXQGHUVHFWLRQERQO\IRUWKHWUDQVSRUWDQG
  FRPPLVVLRQGHFLVLRQUHJDUGLQJFRPSHQVDWLRQIRU,63                     WHUPLQDWLRQRIORFDOWUDIILFQHLWKHUWKHVWDWXWHQRURXUUXOHV
1R                     0LFK%HOO7HO&RY0)6                 0LFK%HOO7HO&RY0)6                    1R
                                  ,QWHOHQHWRI0LFKHWDO                   ,QWHOHQHWRI0LFKHWDO

SURKLELWDVWDWHFRPPLVVLRQIURPFRQFOXGLQJLQDQDUELWUDWLRQ            WUDIILF EHFDXVH WKH\ GR QRW UHODWH WR WKH RULJLQDWLRQ RU
WKDW UHFLSURFDO FRPSHQVDWLRQ LV DSSURSULDWH LQ FHUWDLQ             WHUPLQDWLRQRIWROOVHUYLFHlm([FKDQJHDFFHVVWUDIILFlUHIHUV
LQVWDQFHVl  ,G DW   ,Q DQ\ HYHQW WKH SUHVHQW            WRFDOOVEHWZHHQORQJGLVWDQFHFRPSDQLHVDQGORFDOH[FKDQJH
WHOHFRPPXQLFDWLRQV ODQGVFDSH PDNHV FOHDU WKDW H[LVWLQJ              FDUULHUVDQGFRQWHPSODWHVWKHFROOHFWLRQE\WKHORQJGLVWDQFH
LQWHUFRQQHFWLRQDJUHHPHQWVmUHTXLULQJSD\PHQWRIUHFLSURFDO              FRPSDQLHV RI ORQJGLVWDQFH IHHV IURP WKHLU FXVWRPHUV IRU
FRPSHQVDWLRQ IRU FDOOV PDGH WR ,63V GR QRW FRQIOLFW ZLWK        SD\PHQW RI DFFHVV FKDUJHV WR ORFDO H[FKDQJH FDUULHUV WR
DQGRIWKH$FWRUZLWKWKH)&&jVUHJXODWLRQVRU               FRPSHQVDWH WKHP IRU RULJLQDWLQJ DQG WHUPLQDWLQJ ORQJ
UXOLQJVl6RXWKZHVWHUQ%HOO7HO&R)GDW                  GLVWDQFHFDOOV%\VWDWLQJWKDWFDOOVSODFHGWRDQ,63DWDORFDO
                                                                         QXPEHU DUH QRW mH[FKDQJH DFFHVV WUDIILFl WKH 0LFKLJDQ
    %6WDWH&RPPLVVLRQ,QWHUSUHWDWLRQRI&RQWUDFWXDO                   3XEOLF6HUYLFH&RPPLVVLRQUHFRJQL]HGWKDWVXFKFDOOVGRQRW
                       $JUHHPHQW                                         LQFXU ORQJGLVWDQFH UDWHV DQG EHDU LQGLFLD RI ORFDO
                                                                         WHOHFRPPXQLFDWLRQV  0RUHRYHU EHFDXVH WKH DJUHHPHQWV
   )LQDOO\ZHPXVWGHWHUPLQHZKHWKHUWKH0LFKLJDQ3XEOLF                EHWZHHQ WKH SODLQWLII DQG WKH GHIHQGDQWV H[SOLFLWO\ SURYLGH
6HUYLFH &RPPLVVLRQjV LQWHUSUHWDWLRQ RI WKH FRQWUDFWXDO              WKDW UHFLSURFDO FRPSHQVDWLRQ LV JHQHUDOO\ QRW SDLG IRU
ODQJXDJH LQ WKH DJUHHPHQWV EHWZHHQ WKH SDUWLHV WR WKLV           mH[FKDQJHDFFHVVVHUYLFHlDQGEHFDXVHWKHGLVSXWHGFDOOVmDUH
OLWLJDWLRQ LV DQ DUELWUDU\ RU FDSULFLRXV UHDGLQJ RI WKH WHUPV   QRWDPRQJWKHOLVWHGH[FKDQJHDFFHVVVHUYLFHVWKDWDUH
H[SUHVVHG$OWKRXJKWKHVWDWHDGPLQLVWUDWLYHERG\DQDO\]HG              H[HPSW IURP UHFLSURFDO FRPSHQVDWLRQl WKH FRPPLVVLRQ
WKH DJUHHPHQWV DQG IRXQG WKDW WKH\ GLG LQGHHG PDQGDWH            FRQFOXGHG WKDW mRQ WKHLU IDFH WKH LQWHUFRQQHFWLRQ
UHFLSURFDOFRPSHQVDWLRQIRU,63ERXQGWUDIILFWKHSODLQWLII             DJUHHPHQWVl UHTXLUH $PHULWHFK WR SD\ UHFLSURFDO
QRZ LQVLVWV WKDW VXFK D FRQFOXVLRQ ZDV UHDFKHG RQO\ E\          FRPSHQVDWLRQ IRU WKRVH FDOOV  7KH SODLQWLII PLJKW ZHOO
FRQVLGHUDWLRQRIDOOHJHGO\LPSURSHUH[WULQVLFHYLGHQFH:H              GLVDJUHHZLWKWKLVDQDO\VLVDQGFRQFOXVLRQE\WKH0LFKLJDQ
GLVDJUHH$OWKRXJKWKHVWDWHSXEOLFVHUYLFHFRPPLVVLRQGLG              3XEOLF 6HUYLFH &RPPLVVLRQ  7R GR VR LV $PHULWHFKjV
GLVFXVV H[WULQVLF HYLGHQFH LQ LWV UXOLQJ WKH FRPPLVVLRQHUV       SULYLOHJH7KDWGLVDJUHHPHQWKRZHYHUGRHVQRWWUDQVIRUP
DOVRVWDWHGXQHTXLYRFDOO\WKDWmWKHWHUPVRIWKHDJUHHPHQWV              WKH UHDVRQHG DGPLQLVWUDWLYH GHFLVLRQ LQWR RQH WKDW FDQ EH
WKHPVHOYHV UHVROYH WKH TXHVWLRQ DQG UHTXLUH $PHULWHFK              GHHPHGDUELWUDU\RUFDSULFLRXV
0LFKLJDQ WR SD\ UHFLSURFDO FRPSHQVDWLRQ IRU WKH GLVSXWHG
FDOOVl7KLVFRQFOXVLRQZDVQHLWKHUDUELWUDU\QRUFDSULFLRXV                                   &21&/86,21
  7KH 0LFKLJDQ 3XEOLF 6HUYLFH &RPPLVVLRQ EHJDQ LWV                   7KH UXOLQJ RI WKH 0LFKLJDQ 3XEOLF 6HUYLFH &RPPLVVLRQ
DQDO\VLVRIWKHSDUWLHVjDJUHHPHQWVE\QRWLQJWKDWWKHGLVSXWHG          UHTXLULQJ$PHULWHFKWRSURYLGHUHFLSURFDOFRPSHQVDWLRQWR
FDOOVmWHUPLQDWHZLWKLQWKHORFDOFDOOLQJDUHDlDQGmDUHPDGH            WKHGHIHQGDQWVGRHVQRWYLRODWHHLWKHUWKHOHWWHURUWKHVSLULWRI
IURPRQHORFDOQXPEHUWRDQRWKHULQWKHORFDOFDOOLQJDUHDl             WKH7HOHFRPPXQLFDWLRQV$FWRI$GGLWLRQDOO\WKDWVWDWH
5HFRJQL]LQJWKDWWKHmDJUHHPHQWVGRQRWGLVWLQJXLVKEHWZHHQ              DGPLQLVWUDWLYH UXOLQJ LQWHUSUHWLQJ WKH ZULWWHQ DJUHHPHQWV
FDOOVEDVHGRQWKHQDWXUHRIWKHFXVWRPHUUHFHLYLQJWKHFDOOl           EHWZHHQWKHSDUWLHVLVVXSSRUWHGE\WKHH[SOLFLWODQJXDJHRI
WKHDJHQF\GHFLGHGWKDW,63ERXQGWUDIILFVKRXOGWKHUHIRUH             WKH DJUHHPHQWV DQG LV QHLWKHU DUELWUDU\ QRU FDSULFLRXV
EHFRQVLGHUHGORFDOWHOHFRPPXQLFDWLRQVWUDIILF                          &RQVHTXHQWO\ ZH $)),50 WKH UXOLQJ RI WKH GLVWULFW FRXUW
                                                                         JUDQWLQJVXPPDU\MXGJPHQWLQWKLVPDWWHUWRWKHGHIHQGDQWV
  )XUWKHUPRUHWKHVWDWHFRPPLVVLRQGHWHUPLQHGWKDWmFDOOV
SODFHGWRDQ,63DWDORFDOQXPEHUDUHQRWH[FKDQJHDFFHVV
