         5(&200(1'(' )25 3$57,$/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


 81,7(' 67$7(6 2) $0(5,&$         ;
           3ODLQWLII$SSHOOHH      
                                    
                                      1RV
            Y                        
                                     !
                                    
 0$5/$1'2 +$5'<                     
 +(15< *5((1             
 $17+21< 5286(           
 DQG6+8521              
 0225(                   
                                    
        'HIHQGDQWV$SSHOODQWV 
                                   1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
     1RnsDPHV/*UDKDP'LVWULFWsXGJH
            $UJXHGDQG6XEPLWWHG$XJXVW
            'HFLGHGDQG)LOHG6HSWHPEHU
  %HIRUH68+5+(,15,&+DQG'$8*+75(<&LUFXLW
            sXGJHV&2//,(5'LVWULFWsXGJH




    
     7KH +RQRUDEOH &XUWLV / &ROOLHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
(DVWHUQ 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ



                                   
     8QLWHG6WDWHVY          1RV           1RV                  8QLWHG6WDWHVY       
      +DUG\HWDO                                                                                                  +DUG\HWDO

                     BBBBBBBBBBBBBBBBB                                HYLGHQFH WKH MXURUV DUH PRUH OLNHO\ WKDQ QRW WR XVH WKH
                                                                      HYLGHQFHIRUWKHYHU\SXUSRVHIRUZKLFKWKHILUVWVHQWHQFHRI
                          &2816(/                                     WKH UXOH VWDWHV WKDW LW PD\ QRW EH XVHGl  ,G  m*LYHQ WKH
                                                                      SRWHQWLDO IRU FRQIXVLRQ PLVXVH DQG XQIDLU SUHMXGLFH IURP
$5*8(''HQQLV&%HOOL&ROXPEXV2KLRsDPHV(/                  RWKHUDFWHYLGHQFHLWLVSUHIHUDEOHWKDWWKHGLVWULFWFRXUWPDNH
:DWVRQ&ROXPEXV2KLRIRU$SSHOODQWV7HUU\/HKPDQQ               DQH[SOLFLWILQGLQJUHJDUGLQJWKH5XOHEDODQFLQJl8QLWHG
$66,67$1781,7('67$7(6$77251(<&LQFLQQDWL                         6WDWHVY0\HUV)GWK&LUFHUWGHQLHG
2KLR IRU $SSHOOHH  21 %5,()  'HQQLV & %HOOL             86   6 &W   / (G G  
&ROXPEXV 2KLR sDPHV (/ :DWVRQ &ROXPEXV 2KLR              HPSKDVLVDGGHG:HDOVRQRWHWKHGLVWULFWFRXUWIDLOHGWR
.HQQHWK56SLHUW&ROXPEXV2KLRIRU$SSHOODQWV*DU\/           PDNHDQH[SOLFLWILQGLQJLQWKLVUHJDUG D IDLOXUHZKLFKLQ
6SDUWLV.HYLQ:.HOOH\$66,67$1781,7('67$7(6                     'HIHQGDQW5RXVHjVYLHZUHTXLUHVUHYHUVDO+RZHYHUVLQFH
$77251(<6&ROXPEXV2KLRIRU$SSHOOHH                              ZH KDYH GHFLGHG mEDFNJURXQGl RWKHU WKDQ DV ZH KDYH
                                                                      H[SODLQHGDERYHLVQRWDSURSHUEDVLVIRUDGPLVVLRQXQGHU
                     BBBBBBBBBBBBBBBBB                                5XOHEZHQHHGQRWFRQVLGHU5RXVHjVDUJXPHQW
                         23,1,21                                        :KLOHZHGRILQGWKHGLVWULFWFRXUWHUUHGLQDGPLWWLQJWKLV
                     BBBBBBBBBBBBBBBBB                                HYLGHQFH LQ OLJKW RI WKH RYHUZKHOPLQJ HYLGHQFH DJDLQVW
                                                                      5RXVH ZH QHYHUWKHOHVV ILQG WKLV HUURU WR EH KDUPOHVV  ,Q
   &857,6/&2//,(5'LVWULFWsXGJH,QWKLVFRQVROLGDWHG           GHWHUPLQLQJZKHWKHUDQHUURULVKDUPOHVVWKHUHYLHZLQJFRXUW
DSSHDO'HIHQGDQWV0DUODQGR+DUG\+HQU\*UHHQ$QWKRQ\               mPXVWWDNHDFFRXQWRIZKDWWKHHUURUPHDQWWR>WKHMXU\@QRW
5RXVH DQG 6KXURQ 0RRUH FKDOOHQJH WKHLU UHVSHFWLYH               VLQJOHGRXWDQGVWDQGLQJDORQHEXWLQUHODWLRQWRDOOHOVHWKDW
MXGJPHQWV RI FRQYLFWLRQ DQGRU VHQWHQFHV LQ WKLV GUXJ          KDSSHQHGl.RWWHDNRVY8QLWHG6WDWHV86
FRQVSLUDF\FDVH%HFDXVHWKHRQO\LVVXHRISUHFHGHQWLDOYDOXH        6 &W   / (G    7KH JRYHUQPHQW
LV'HIHQGDQW5RXVHjVDUJXPHQWFRQFHUQLQJDGPLVVLRQRIRWKHU           SUHVHQWHG PRUH WKDQ VXIILFLHQW RWKHU HYLGHQFH WR VXSSRUW
DFWVHYLGHQFHSXUVXDQWWR)HG5(YLGEZHDGGUHVVLW         5RXVHjVFRQYLFWLRQLQFOXGLQJWHVWLPRQ\E\ZLWQHVVHVRWKHU
EHORZ  $OO IDFWV QRW UHOHYDQW WR 'HIHQGDQW 5RXVH DQG DOO   WKDQ/HH*LOORI5RXVHjVFRRNLQJDQGVHOOLQJRIFUDFNFRFDLQH
UHPDLQLQJLVVXHVZLWKUHVSHFWWRHDFKGHIHQGDQWDUHDGGUHVVHG         ,QOLJKWRIRWKHUFRPSHOOLQJHYLGHQFHDJDLQVW5RXVHZHFDQ
LQDQXQSXEOLVKHGDSSHQGL[WRWKLVRSLQLRQ                           VD\ ZLWK mIDLU DVVXUDQFHl WKDW WKH MXU\jV YHUGLFW mZDV QRW
                   ,5(/(9$17)$&76                                 VXEVWDQWLDOO\VZD\HGlE\DQ\LPSURSHUO\UHFHLYHGHYLGHQFHRI
                                                                      RWKHUFULPHVFRPPLWWHGE\WKHGHIHQGDQW
   2Q 2FWREHU   WKH *UDQG sXU\ IRU WKH 6RXWKHUQ
'LVWULFWRI2KLRUHWXUQHGDFRXQWVXSHUVHGLQJLQGLFWPHQW                                 ,,,&21&/86,21
DJDLQVW  LQGLYLGXDOV DOOHJLQJ YDULRXV GUXJ RIIHQVHV             ,Q VXP ZH FRQFOXGH WKH HYLGHQFH RI 5RXVHjV GUXJ
'HIHQGDQW $QWKRQ\ 5RXVH ZDV FKDUJHG LQ FRXQW RQH ZLWK         WUDQVDFWLRQVLQZDVLPSURSHUO\DGPLWWHG+RZHYHUZH
FRQVSLUDF\WRSRVVHVVZLWKLQWHQWWRGLVWULEXWHDQGFRQVSLUDF\        XOWLPDWHO\ ILQG WKLV HUURU ZDV KDUPOHVV DQG WKHUHIRUH
WRGLVWULEXWHPRUHWKDQJUDPVRIFRFDLQHEDVHLQYLRODWLRQ         $)),50WKHGLVWULFWFRXUW
RI86&7KHLQGLFWPHQWFKDUJHGWKHFRQVSLUDF\
WRRN SODFH m>I@URP RQ RU DERXW 0D\   WKURXJK DQG
LQFOXGLQJWKHGDWHRIWKH6XSHUVHGLQJ,QGLFWPHQW>2FWREHU
    8QLWHG6WDWHVY            1RV             1RV               8QLWHG6WDWHVY      
      +DUG\HWDO                                                                                                   +DUG\HWDO

  >:@H ILUVW UHYLHZ IRU FOHDU HUURU WKH GLVWULFW FRXUWjV          @ WKH H[DFW GDWHV EHLQJ XQNQRZQ WR WKH JUDQG MXU\l
  IDFWXDOGHWHUPLQDWLRQWKDWWKHmRWKHUDFWVlRFFXUUHG               5RXVHZHQWWRWULDO DORQJZLWKFRGHIHQGDQWV+HQU\*UHHQ
  6HFRQG ZH H[DPLQH GH QRYR WKH GLVWULFW FRXUWjV OHJDO           0DXULFH0RUULVDQG'HQQLV(YDQV
  GHWHUPLQDWLRQ WKDW WKH HYLGHQFH ZDV DGPLVVLEOH IRU D
  OHJLWLPDWH SXUSRVH  )LQDOO\ ZH UHYLHZ IRU DEXVH RI              7KHJRYHUQPHQWSUHVHQWHGHYLGHQFHDWWULDOWKDWDJURXSRI
  GLVFUHWLRQ WKH GLVWULFW FRXUWjV GHWHUPLQDWLRQ WKDW WKH            LQGLYLGXDOVIURP*DU\,QGLDQDDQGIURP &ROXPEXV2KLR
  SUREDWLYH YDOXH RI WKH RWKHU DFWV HYLGHQFH LV QRW               ZHUHDOOLQYROYHGLQDVWUHHWJDQJNQRZQDVWKHm*,%R\Vl
  VXEVWDQWLDOO\RXWZHLJKHGE\LWVXQIDLUO\SUHMXGLFLDOHIIHFW            7KHJRYHUQPHQWFRQWHQGHGWKLVJURXSGLVWULEXWHGGUXJVIURP
                                                                          YDULRXV ORFDWLRQV LQ WKH QHDU HDVW VLGH DQG ZHVW VLGH RI
8QLWHG 6WDWHV Y 0HUULZHDWKHU  )G DW   FLWDWLRQV       &ROXPEXV6HYHUDOFRRSHUDWLQJZLWQHVVHVWHVWLILHGDWWULDO
RPLWWHG                                                                 7KHJRYHUQPHQWjVNH\ZLWQHVVZDV/HH*LOO
  ,Q WKLV FDVH WKH UHFRUG GRHV QRW UHIOHFW WKH GLVWULFW FRXUW     $WWULDO*LOOWHVWLILHGKHZHQWWRSULVRQLQ:KHQKH
PDGHWKHUHTXLUHGIDFWXDOILQGLQJWKHRWKHUEDGDFWVRFFXUUHG            ZDV UHOHDVHG LQ  KH FRQWDFWHG $QWKRQ\ 5RXVH ZKR
+RZHYHUVLQFH5RXVHGLGQRWGLVSXWHWKLVIDFWDWWULDOQRU              KHOSHGKLPJHWEDFNLQWRWKHGUXJEXVLQHVV*LOOVROGFUDFN
GRHVKHGRVRRQDSSHDOZHGRQRWILQGWKHGLVWULFWFRXUWjV              VXSSOLHGE\5RXVHRXWRIVHYHUDOORFDWLRQVLQ&ROXPEXV,Q
IDLOXUHUHTXLUHVUHYHUVDO                                              WKH VSULQJ RI  D FRQILGHQWLDO LQIRUPDQW FRQWDFWHG D
                                                                          %XUHDX RI $OFRKRO 7REDFFR DQG )LUHDUPV m$7)l DJHQW
   ,QVWHDGRILGHQWLI\LQJRQHRIWKHHQXPHUDWHGSXUSRVHVXQGHU            DERXWWKH*,%R\VjFUDFNRSHUDWLRQ$7)DQGWKH&ROXPEXV
5XOHEWKHJRYHUQPHQWJDYHDVLWVUHDVRQmEDFNJURXQGl               3ROLFH 'HSDUWPHQW FRQGXFWHG DQ LQYHVWLJDWLRQ  2IILFHUV
DQG FRPPRQ SODQ RU VFKHPH  7KH GLVWULFW FRXUW JDYH              LQVWDOOHGDYLGHRFDPHUDDWWKHLQIRUPDQWjVUHVLGHQFHVLQFH
EDFNJURXQG DV LWV UDWLRQDOH IRU DGPLWWLQJ WKH HYLGHQFH            PDQ\RIWKH*,%R\VjDOOHJHGO\IUHTXHQWHGWKHSODFH:KHQ
$OWKRXJKWKHOLVWRISHUPLVVLEOHSXUSRVHVHQXPHUDWHGXQGHU               WKHLQIRUPDQWPRYHGDQRWKHUYLGHRFDPHUDZDVLQVWDOOHGDW
5XOH E LV QRW H[KDXVWLYH ZH FDQQRW VHH KRZ                  WKH QHZ UHVLGHQFH  7KHVH FDPHUDV FDSWXUHG DQG UHFRUGHG
mEDFNJURXQGlDVGHILQHGE\WKHJRYHUQPHQWZRXOGVHUYHWKH                 YDULRXVXQODZIXODFWLYLWLHVLQFOXGLQJGLVWULEXWLRQDQGXVHRI
HQGV RI WKH UXOH  7R DOORZ D JHQHUDO H[FHSWLRQ IRU             FUDFNDQGSRZGHUFRFDLQHE\VHYHUDORIWKH*,%R\V*LOODQG
mEDFNJURXQGFLUFXPVWDQFHVlDQH[FHSWLRQQRWDVFDUHIXOO\                 RWKHUFRRSHUDWLQJZLWQHVVHVWHVWLILHGH[WHQVLYHO\DVWR5RXVHjV
FLUFXPVFULEHGDVWKHRQHH[SODLQHGDERYHZRXOGEHWRDOORZ               LQYROYHPHQWLQWKHFRQVSLUDF\
DQH[FHSWLRQWKDWVZDOORZVWKHUXOH&RQVHTXHQWO\WKHWULDO
FRXUW HUUHG LQ FRQFOXGLQJ WKH HYLGHQFH ZDV RIIHUHG IRU D            %HIRUHWKHWULDOFRXQVHOIRU5RXVHILOHGD0RWLRQLQ/LPLQH
SURSHUSXUSRVH                                                           UHTXHVWLQJWKHGLVWULFWFRXUWH[FOXGHWHVWLPRQ\RIRWKHUDFWV
                                                                          RXWVLGH WKH WLPH IUDPH RI WKH FRQVSLUDF\ DOOHJHG LQ WKH
  ,QDGGLWLRQWRGHFLGLQJZKHWKHURWKHUEDGDFWVHYLGHQFHLV              VXSHUVHGLQJLQGLFWPHQW$WWULDOWKHJRYHUQPHQWDWWHPSWHG
SUHVHQWHGIRUDSURSHUSXUSRVHWKHGLVWULFWFRXUWPXVWILQG              WRTXHVWLRQ/HH*LOODERXWDOOHJHGGUXJWUDQVDFWLRQVLQYROYLQJ
ZKHWKHUWKHSUHMXGLFLDOHIIHFWRIWKHHYLGHQFHRXWZHLJKHGLWV             'HIHQGDQW5RXVHZKLFKRFFXUUHGLQVL[\HDUVEHIRUHWKH
SUREDWLYH YDOXH LQ DFFRUGDQFH ZLWK )HG 5 (YLG              FRQVSLUDF\ DOOHJHG LQ WKH LQGLFWPHQW HYHQ EHJDQ  'HIHQVH
sRKQVRQ)GDWm$OHJLWLPDWHFRPSRQHQWRIWKDW                FRXQVHOREMHFWHGDQGWKHWULDOMXGJHKHOGDEHQFKFRQIHUHQFH
ZHLJKLQJ SURFHVV LV WKH WULDO FRXUWjV LQIRUPHG MXGJPHQW            RXWRIWKHMXU\jVSUHVHQFH7KHJRYHUQPHQWH[SODLQHGLWZDV
ZKHWKHUGHVSLWHWKHµWHFKQLFDOjDGPLVVLELOLW\RIWKHRWKHUDFWV          DWWHPSWLQJ WR VKRZ EDFNJURXQG WKDW LV KRZ /HH *LOO PHW
     8QLWHG6WDWHVY          1RV           1RV                  8QLWHG6WDWHVY       
      +DUG\HWDO                                                                                                  +DUG\HWDO

$QWKRQ\ 5RXVH DQG WKH GHYHORSPHQW RI WKHLU UHODWLRQVKLS       /RZH ZHUH QRW QDPHG LQ WKH FKDUJHG FRQVSLUDF\  7KLV
7KHJRYHUQPHQWDOVRFRQWHQGHGWKLVLQIRUPDWLRQVKRZHGD               WHVWLPRQ\ZDVQRWQHFHVVDU\WRH[SODLQWKHFKDUJHGRIIHQVH
FRPPRQ VFKHPH RU SODQ EHWZHHQ *LOO 5RXVH DQG RWKHUV         FRPSOHWH WKH VWRU\ RI *LOOjV WHVWLPRQ\ QRU GLG LW WHQG WR
ZKLFK FRQWLQXHG LQ  WKH DOOHJHG VWDUWLQJ \HDU RI WKH    HVWDEOLVKWKHFKDUJHGFRQVSLUDF\LWVHOI7KXVWKHWULDOFRXUW
FRQVSLUDF\  'HIHQVH FRXQVHO DUJXHG WKLV LQIRUPDWLRQ ZDV       HUUHGLQDGPLWWLQJ*LOOjVWHVWLPRQ\DVEDFNJURXQGHYLGHQFH
SUHMXGLFLDO DQG FRQVWLWXWHG LPSURSHU FKDUDFWHU HYLGHQFH
ZKLFKVKRXOGEHH[FOXGHGXQGHU)HG5(YLG                                             %5XOHE
  $IWHU KHDULQJ DUJXPHQWV RI FRXQVHO WKH WULDO MXGJH             +DYLQJ GHWHUPLQHG WKH HYLGHQFH FRXOG QRW KDYH EHHQ
RYHUUXOHG5RXVHjVREMHFWLRQDQGDOORZHGWKHJRYHUQPHQWWR             SURSHUO\ DGPLWWHG DV EDFNJURXQG HYLGHQFH ZH ZLOO QRZ
GHYHORS WKH HYLGHQFH  7KH MXGJH JDYH WKH MXU\ D OLPLWLQJ   H[DPLQHZKHWKHULVZDVSURSHUO\DGPLWWHGXQGHU5XOHE
LQVWUXFWLRQKRZHYHUH[SODLQLQJWRWKHMXU\WKH\FRXOGRQO\          5XOHERIWKH)('(5$/ 58/(6 2) (9,'(1&(JHQHUDOO\
FRQVLGHUWKHWHVWLPRQ\UHJDUGLQJDFWVSULRUWR0D\DV           SURKLELWVWKHLQWURGXFWLRQRIHYLGHQFHRIH[WULQVLFDFWVWKDW
HYLGHQFHRIEDFNJURXQGLQIRUPDWLRQDQGDVDQH[SODQDWLRQRI           PLJKWDGYHUVHO\UHIOHFWRQRQHjVFKDUDFWHU6HH)HG5(YLG
KRZFHUWDLQLQGLYLGXDOVEHFDPHDFTXDLQWHGZLWKHDFKRWKHU            Em6LPLODUDFWlRUmRWKHUEDGDFWlHYLGHQFHKRZHYHU
                                                                      PD\ EH DGPLVVLEOH LI VXFK HYLGHQFH EHDUV XSRQ D UHOHYDQW
   7KHMXU\IRXQG5RXVHJXLOW\RIWKHFRQVSLUDF\FKDUJH7KH         LVVXH LQ WKH FDVH  7KH UXOH HQXPHUDWHV D QRQH[KDXVWLYH
GLVWULFWFRXUWVHQWHQFHG5RXVHWRPRQWKVLPSULVRQPHQW             QXPEHURISURSHUSXUSRVHVIRUVXFKHYLGHQFH6HH)HG5
DQGILYH\HDUVVXSHUYLVHGUHOHDVH5RXVHDSSHDOVLQWHUDOLD        (YLGE
WKH GLVWULFW FRXUWjV GHFLVLRQ WR DOORZ WHVWLPRQ\ UHJDUGLQJ
DOOHJHG GUXJ DFWLYLW\ E\ 5RXVH SULRU WR WKH GDWH RI WKH       :HKDYHFRQVLVWHQWO\KHOGWKHGLVWULFWFRXUWPXVWDSSO\D
FRQVSLUDF\ DOOHJHG LQ WKH VXSHUVHGLQJ LQGLFWPHQW                WKUHHVWHSDQDO\VLVWRHYDOXDWHWKHDGPLVVLELOLW\RIHYLGHQFH
6SHFLILFDOO\5RXVHFODLPVWKHGLVWULFWFRXUWIDLOHGWRFRQGXFW        XQGHU5XOHE6HH8QLWHG6WDWHVYsRKQVRQ)G
DQRQWKHUHFRUGEDODQFLQJRIWKHSUREDWLYHYDOXHYHUVXVWKH          WK&LUFHUWGHQLHG86
SUHMXGLFLDO LPSDFW RI VXFK WHVWLPRQ\ DV GLUHFWHG E\ RXU       6 &W   / (G G    $ SDUW\ VHHNLQJ WR
KROGLQJLQ8QLWHG6WDWHVY0HUULZHDWKHU)G          DGPLWEHYLGHQFHPXVWILUVWGHPRQVWUDWHWKDWWKHRWKHU
WK&LU                                                      EDGDFWVRFFXUUHG6HHLG7KHSDUW\PXVWWKHQFLWHDVSHFLILF
                                                                      SXUSRVHIRUZKLFKWKHHYLGHQFHLVRIIHUHGDIWHUZKLFKWKHWULDO
                      ,,',6&866,21                                 FRXUW PXVW GHWHUPLQH ZKHWKHU WKH SUREDWLYH YDOXH RI WKH
                                                                      LGHQWLILHGSXUSRVHRXWZHLJKVWKHULVNRIXQIDLUSUHMXGLFH6HH
  7KLV FDVH KLJKOLJKWV WKH LPSRUWDQFH RI GLVWULFW FRXUWV       LG7KXVDSDUW\VHHNLQJDGPLVVLRQRImRWKHUDFWVlHYLGHQFH
DGKHULQJWRWKHSURFHGXUDODQDO\VLVVHWRXWLQ0HUULZHDWKHU           PXVWVKRZWKHHYLGHQFHLVSUREDWLYHRIDPDWHULDOLVVXHRWKHU
UHJDUGLQJDGPLVVLRQRI5XOHEHYLGHQFHRUZKHUH5XOH           WKDQFKDUDFWHU6HH+XGGOHVWRQY8QLWHG6WDWHV86
ELVQRWLPSOLFDWHGFOHDUO\LGHQWLI\LQJWKHHYLGHQWLDU\         6&W/(GG
EDVLVIRUDGPLVVLRQRIWKHHYLGHQFHDQGSURSHUO\DQDO\]LQJ
WKDWEDVLV                                                             :HUHYLHZDGLVWULFWFRXUWjVGHFLVLRQWRDGPLWHYLGHQFHRI
                                                                      mRWKHU FULPHV ZURQJV RU DFWVl XQGHU 5XOH E XVLQJ D
  ,Q UHVSRQGLQJ WR 5RXVHjV REMHFWLRQ WKH JRYHUQPHQW            WKUHHSDUWWHVW
LQGLFDWHG LW ZLVKHG WR LQWURGXFH WKH HYLGHQFH WR VKRZ
HVVHQWLDOEDFNJURXQGFLUFXPVWDQFHVLHKRZ*LOOPHW5RXVH
     8QLWHG6WDWHVY           1RV           1RV                8QLWHG6WDWHVY       
      +DUG\HWDO                                                                                                 +DUG\HWDO

6LQFHWKHJRYHUQPHQWKDGWRHVWDEOLVKWKHGHIHQGDQW             DQGEHFDXVHLWVKRZHGDFRPPRQSODQRUVFKHPH2QWKH
NQHZ WKH FRQVSLUDF\ LQYROYHG PRUH WKDQ  SRXQGV RI         EDVLV RI WKDW UHSUHVHQWDWLRQ WKH GLVWULFW FRXUW DOORZHG WKH
PDULMXDQD WKH GLVWULFW FRXUW DOORZHG WHVWLPRQ\ RI WKH          WHVWLPRQ\+RZHYHUDFORVHUHYLHZRIWKHHYLGHQFHUHYHDOV
)HEUXDU\WUDQVDFWLRQEXWGLVDOORZHGSURRIRIWKHTXDQWLW\RI           LWZDVQRWSURSHUEDFNJURXQGHYLGHQFHQRUZDVLWHYLGHQFH
GUXJVLQYROYHGWKHUH2QUHYLHZZHVWDWHGm,QYLHZRILWV           DGPLVVLEOHXQGHU5XOHE
HYLGHQWSUREDWLYHYDOXHLQH[SODLQLQJWKH µDOOKHFRXOGGRj
VWDWHPHQWWKHGLVWULFWFRXUWGRHVQRWDSSHDUWRKDYHDEXVHGLWV                        $%DFNJURXQG(YLGHQFH
GLVFUHWLRQLQDGPLWWLQJWKLVHYLGHQFHWRVKRZWKHEDFNJURXQG
DQG GHYHORSPHQW RI WKH FRQVSLUDF\ DQG >GHIHQGDQWjV@                 7KLV FRXUW KDV SUHYLRXVO\ UHFRJQL]HG WKH SURSULHW\ RI
NQRZOHGJHDEOHSDUWLFLSDWLRQLQWKHFRQVSLUDF\l,GDW          LQWURGXFLQJ mEDFNJURXQGl HYLGHQFH  6HH 8QLWHG 6WDWHV Y
+HUH DJDLQ WKH HYLGHQFH ZDV SUR[LPDWH WR WKH GDWH RI WKH     %XFKDQDQ)GWK&LU8QLWHG6WDWHV
FKDUJHGRIIHQVHWKHHYLGHQFHZDVQHFHVVDU\WRH[SODLQWKH             Y3DXOLQR)GWK&LUFHUWGHQLHG
ZLWQHVVjV WHVWLPRQ\ DQG LW UHODWHG WR WKH LQFHSWLRQ RI WKH   866&W/(GG6XFK
FKDUJHGFRQVSLUDF\                                                    HYLGHQFHRIWHQUHIHUUHGWRDVmUHVJHVWDHlGRHVQRWLPSOLFDWH
                                                                       5XOHEs$&. % :(,167(,1 0$5*$5(7 $ %(5*(5
   7KHDERYHDQDO\VLVRIRXUSULRUFDVHVRQWKLVVXEMHFWUHYHDOV       	 s26(3+ 0 0&/$8*+/,1 :(,167(,1j6 )('(5$/
WKDWUDWKHUWKDQSURYLGLQJXQIHWWHUHGUHLQWKHGHILQLWLRQRI         (9,'(1&(>@>F@+RZHYHUDUHYLHZRI%XFKDQDQ
EDFNJURXQG RUUHV JHVWDH HYLGHQFH HYROYHG E\ WKRVH FDVHV        DQG3DXOLQRDQGVLPLODUFDVHVGHPRQVWUDWHVWKHmEDFNJURXQG
LPSRVHVVHYHUHOLPLWDWLRQVLQWHUPVRIWKHWHPSRUDOSUR[LPLW\         FLUFXPVWDQFHVH[FHSWLRQlWRWKHJHQHUDOH[FOXVLRQRIRWKHUDFW
FDXVDO UHODWLRQVKLS RU VSDWLDO FRQQHFWLRQV WKDW PXVW H[LVW     HYLGHQFHLVQRWDQRSHQHQGHGEDVLVWRDGPLWDQ\DQGDOORWKHU
EHWZHHQ WKH RWKHU DFWV DQG WKH FKDUJHG RIIHQVH  %HIRUH D    DFWHYLGHQFHWKHSURSRQHQWZLVKHVWRLQWURGXFH5DWKHUWKH
FRXUW GHFLGHV ZKHWKHU RWKHU DFWV IDOO LQWR WKH mEDFNJURXQG     YHU\ GHILQLWLRQ RI ZKDW FRQVWLWXWHV EDFNJURXQG HYLGHQFH
FLUFXPVWDQFHVlH[FHSWLRQWRWKHJHQHUDOSURVFULSWLRQDJDLQVW           FRQWDLQVLQKHUHQWOLPLWDWLRQV%XFKDQDQ3DXOLQRDQGRWKHU
VXFKHYLGHQFHLWPXVWILUVWDQDO\]HWKHSURIIHUHGHYLGHQFHLQ         FDVHV GHDOLQJ ZLWK WKLV LVVXH WHDFK WKDW EDFNJURXQG RU UHV
OLJKWRIWKHVHFRQVWUDLQWV                                            JHVWDH HYLGHQFH FRQVLVWV RI WKRVH RWKHU DFWV WKDW DUH
                                                                       LQH[WULFDEO\ LQWHUWZLQHG ZLWK WKH FKDUJHG RIIHQVH RU WKRVH
  ,QWKLVFDVHWKHFRXUWEHORZGLGQRWDQDO\]HWKHGLVSXWHG           DFWVWKHWHOOLQJRIZKLFKLVQHFHVVDU\WRFRPSOHWHWKHVWRU\RI
WHVWLPRQ\LQWKLVIDVKLRQ+DGWKHFRXUWGRQHVRLWZRXOG            WKHFKDUJHGRIIHQVH:(,167(,1VXSUDDW>@>F@DQG
KDYHH[FOXGHGWKHHYLGHQFH7KHHYLGHQFHLQYROYHGDOOHJHG             >G@8QLWHG6WDWHVY:HLQVWRFN)GWK&LU
GUXJ WUDQVDFWLRQV RFFXUULQJ VL[ \HDUV EHIRUH WKH GDWH WKH      8QLWHG6WDWHVY%DUQHV)GWK&LU
FRQVSLUDF\DOOHJHGLQWKHLQGLFWPHQWEHJDQ*LOOjVWHVWLPRQ\          8QLWHG6WDWHVY7RZQVHQG)GWK&LU
DV WR WKHVH DFWV GLG QRW HVWDEOLVK WKH LQFHSWLRQ RI WKH      8QLWHG6WDWHVY&XQQLQJKDP)GWK
FRQVSLUDF\FKDUJHGLQWKHLQGLFWPHQW5DWKHUKLVWHVWLPRQ\            &LU
RQO\HVWDEOLVKHGWKHIROORZLQJ5RXVHKDGGLVWULEXWHGGUXJV
WR KLP 1RUPDQ 0DORQH DQG /HZLV /RZH LQ  DQG            3URSHU EDFNJURXQG HYLGHQFH KDV D FDXVDO WHPSRUDO RU
0DORQHKDGGLVWULEXWHGGUXJVWRKLP6WHSKHQ:DVKLQJWRQ               VSDWLDOFRQQHFWLRQZLWKWKHFKDUJHGRIIHQVH7\SLFDOO\VXFK
2GHOO $UQROG DQG XQQDPHG RWKHUV  $V GHIHQVH FRXQVHO           HYLGHQFH LV D SUHOXGH WR WKH FKDUJHG RIIHQVH LV GLUHFWO\
SRLQWHG RXW GXULQJ WKH EHQFK FRQIHUHQFH WKHUH ZDV QRW DQ     SUREDWLYHRIWKHFKDUJHGRIIHQVHDULVHVIURPWKHVDPHHYHQWV
LGHQWLW\RISDUWLHVLQYROYHGLQERWKWUDQVDFWLRQV0DORQHDQG         DVWKHFKDUJHGRIIHQVHIRUPVDQLQWHJUDOSDUWRIDZLWQHVVjV
      8QLWHG6WDWHVY         1RV           1RV                 8QLWHG6WDWHVY         
       +DUG\HWDO                                                                                                +DUG\HWDO

WHVWLPRQ\ RU FRPSOHWHV WKH VWRU\ RI WKH FKDUJHG RIIHQVH     HYLGHQFH)RUH[DPSOHLQ8QLWHG6WDWHVY%XFKDQDQ
sHQQLIHU < 6FKXVWHU 8QFKDUJHG 0LVFRQGXFW 8QGHU 5XOH           )GWK&LUWKHGUXJRUJDQL]DWLRQLQYROYHGLQ
E 7KH $GPLVVLELOLW\ RI ,QH[WULFDEO\ ,QWHUWZLQHG            WKDWFDVHDOOHJHGO\EHJDQRSHUDWLQJLQDQGDURXQG.DODPD]RR
(YLGHQFH8 0,$0, /$: 5(9,(:0DUFK0D\                0LFKLJDQ LQ   7KH LQGLFWPHQW DOOHJHG WKH FRQVSLUDF\
                                                                      WHUPLQDWHGLQsXQH7KH%XFKDQDQWULDOFRXUWDGPLWWHG
   7KHJRYHUQPHQWUHOLHVXSRQ8QLWHG6WDWHVY3DVVDUHOOD            HYLGHQFH FRQFHUQLQJ D VHL]XUH RI GUXJV LQ  DQG D
 ) G  WK &LU  DUJXLQJ m>H@VWDEOLVKLQJ WKH   SXUFKDVHRIGUXJVLQ,QDIILUPLQJWKHFRXUWEHORZZH
GHYHORSPHQWDQGEDFNJURXQGRIDGUXJFRQVSLUDF\PHHWVWKH             VDLG
ILUVWUHTXLUHPHQWRIDGPLVVLELOLW\XQGHU>5XOH@EDVLWLV
D OHJLWLPDWH SXUSRVH IRU DGPLVVLRQ RI HYLGHQFH RI GUXJ          +HUHKRZHYHU5XOHELVQRWDSSOLFDEOHEHFDXVHWKH
GHDOLQJEHWZHHQFRFRQVSLUDWRUVSULRUWRWKDWFKDUJHGLQWKH            HYLGHQFH FRQVWLWXWHV mD FRQWLQXLQJ SDWWHUQ RI LOOHJDO
LQGLFWPHQWl  7KH JRYHUQPHQW RYHUVWDWHV WKH KROGLQJ LQ           DFWLYLW\l>FLWLDWLRQRPLWWHG@(YHQLI5XOHEDSSOLHG
3DVVDUHOOD  ,Q 3DVVDUHOOD WKH WHVWLPRQ\ XQGHU VFUXWLQ\         LQ WKLV VLWXDWLRQ WKH GLVWULFW FRXUW GLG QRW DEXVH LWV
FRQFHUQHGGUXJGHDOVWKDWWRRNSODFHVRPHWLPHLQ7KH             GLVFUHWLRQ LQ DGPLWWLQJ WKH WHVWLPRQ\ EHFDXVH WKH
FRXQWHUIHLWLQJRIIHQVHVFKDUJHGLQWKHLQGLFWPHQWLQWKDWFDVH          HYLGHQFHVHUYHGWKHmOHJLWLPDWHSXUSRVHRIVKRZLQJWKH
ZHUHDOOHJHGWRKDYHEHJXQRQRUEHIRUH)HEUXDU\,G             EDFNJURXQGDQGGHYHORSPHQWRIDFRQVSLUDF\l^FLWDWLRQ
DW  Q  ,Q KROGLQJ DGPLVVLRQ RI WKLV WHVWLPRQ\ ZDV      RPLWWHG`
SURSHUZHVDLG
                                                                      ,GDW7KLVHYLGHQFHFRQFHUQHGHYHQWVWKDWWRRNSODFH
    ,QRXUYLHZWHVWLPRQ\FRQFHUQLQJSULRUGUXJWUDQVDFWLRQV         ZLWKLQWKHDOOHJHGWLPHIUDPHRIWKHFRQVSLUDF\DQGLVW\SLFDO
    EHWZHHQ 3DVVDUHOOD DQG 3DUVRQV DQG 3DVVDUHOOD DQG          RI WKH HYLGHQFH QHHGHG WR SURYH WKH YHU\ H[LVWHQFH RI WKH
    +XGVRQ ZDV DGPLVVLEOH XQGHU 5XOH E IRU WKH           FKDUJHGFRQVSLUDF\
    OHJLWLPDWHSXUSRVHRISURYLQJWKHmH[LVWHQFHRIDODUJHU
    FRQWLQXLQJ SODQ VFKHPH RU FRQVSLUDF\ RI ZKLFK WKH           ,Q8QLWHG6WDWHVY3DXOLQR)GWK&LU
    SUHVHQWFULPHRQWULDOLVDSDUWl>FLWDWLRQVRPLWWHG@7KLV       WKH HYLGHQFH ZDV QRW H[WULQVLF EXW UDWKHU HVWDEOLVKHG WKH
    HYLGHQFH VKRZHG WKDW WKHUH ZDV DQ RQJRLQJ SODQ RU         H[LVWHQFHRIDVLQJOHRQJRLQJFRQVSLUDF\WKDWVLPSO\PRYHG
    VFKHPH LQYROYLQJ 3DVVDUHOOD DQG RWKHUV WR HQJDJH LQ        IURP)ORULGDWR.HQWXFN\7KHUHZHVDLGWKHHYLGHQFHZDV
    FULPHVZKLFKZHUHWKHVXEMHFWRIWKHLQGLFWPHQW7KLV            SURSHUO\ DGPLWWHG mVLQFH LW ZDV FOHDUO\ DGPLVVLEOH IRU WKH
    HYLGHQFHZDVWKHUHIRUHUHOHYDQWWRERWKWKHH[LVWHQFHDQG         µOHJLWLPDWH SXUSRVH RI VKRZLQJ WKH EDFNJURXQG DQG
    WKHFRQWLQXLQJQDWXUHRIWKHFRQVSLUDF\                          GHYHORSPHQWRIDFRQVSLUDF\jl,GDWFLWDWLRQVRPLWWHG
,GDW7KXVLQ3DVVDUHOODWKHHYLGHQFHZDVQHFHVVDU\            )LQDOO\LQ8QLWHG6WDWHVY+LWRZ)GWK&LU
WR HVWDEOLVK WKH H[LVWHQFH RI WKH FKDUJHG FRQVSLUDF\           WKH RWKHU DFW HYLGHQFH FRQFHUQHG WHVWLPRQ\ E\ D
0RUHRYHU XQOLNH LQ WKLV FDVH WKH GLVSXWHG HYLGHQFH LQ       FRFRQVSLUDWRUFRQFHUQLQJD)HEUXDU\GUXJWUDQVDFWLRQDW
3DVVDUHOODFRQFHUQHGHYHQWVFORVHO\FRQQHFWHGLQWLPHWRWKH          WKHGHIHQGDQWjVWULDOIRUDGUXJFRQVSLUDF\DOOHJHGO\LQYROYLQJ
FKDUJHGRIIHQVH                                                      PRUH WKDQ  SRXQGV RI PDULMXDQD FRQVXPPDWHG LQ
                                                                      $XJXVW   'XULQJ WKH )HEUXDU\  WUDQVDFWLRQ WKH
  $UHYLHZRIRWKHUFDVHVUHYHDOVDVLPLODUO\FORVHFRQQHFWLRQ        FRFRQVSLUDWRUKDGWROGWKHGHIHQGDQWKHWKHGHIHQGDQWFRXOG
EHWZHHQWKHFKDUJHGRIIHQVHDQGWKHSURIIHUHGEDFNJURXQG              KDYH mDV PXFK >RI WKH PDULMXDQD@ DV KH FRXOG GRl  ,G DW
