       5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
            3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

   (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
               )LOH 1DPH DS




81,7('67$7(6&28572)$33($/6
                )257+(6,;7+&,5&8,7
                  BBBBBBBBBBBBBBBBB


),567 1$7,21$/ %$1. 2)           ;
38/$6.,                          
                  3ODLQWLII      
                                      1R
                                  
           Y                      !
                                  
                                  
s2+1 7 &855<HWDO             
         'HIHQGDQWV&RXQWHU       
             DQG7KLUG3DUW\      
         3ODLQWLIIV$SSHOOHHV    
                                  
                                  
+(15< +(15< 	 63((5             
3&HWDO                      
       'HIHQGDQWV7KLUG3DUW\     
        'HIHQGDQWV$SSHOODQWV    
                                  
                                  
:,//,$0 5 +251(HWDO          
     7KLUG3DUW\'HIHQGDQWV      
BBBBBBBBBBBBBBBBBBBBBBBB          
                                  
s2+11,( 0 &855<                 
          3ODLQWLII$SSHOOHH     
                                  
                                  
           Y                     
                                  
                                  
                                  

                           
       )LUVW1DWjO%DQNRI                     1R
        3XODVNLY&XUU\HWDO


    ),567 1$7,21$/ %$1. 2)          
    38/$6.,HWDO                 
                    'HIHQGDQWV     
                                    
                                    
    +(15< +(15< 	 63((5           
    3&HWDO                   
            'HIHQGDQWV$SSHOODQWV 
                                   1
          $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
       IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW&ROXPELD
       1RVn:LOOLDPs+D\QHVsU
                        'LVWULFWsXGJH
                   $UJXHGsDQXDU\
              'HFLGHGDQG)LOHG$XJXVW
      %HIRUH0(55,77%2**6DQG0225(&LUFXLW
                         sXGJHV
                      BBBBBBBBBBBBBBBBB
                           &2816(/
$5*8('  :LQVWRQ 6 (YDQV (9$16 s21(6 	
5(<12/'61DVKYLOOH7HQQHVVHHIRU$SSHOODQWV&KDUOHV
: +ROW sU %26721 +2/7 	 62&.:(//
/DZUHQFHEXUJ 7HQQHVVHH IRU $SSHOOHHV  21 %5,()
:LQVWRQ 6 (YDQV :LOOLDP %XUJLQ +DZNLQV ,,, (9$16
s21(6 	 5(<12/'6 1DVKYLOOH 7HQQHVVHH IRU
$SSHOODQWV  *HRUJH % %RVWRQ %26721 +2/7 	
62&.:(///DZUHQFHEXUJ7HQQHVVHHIRU$SSHOOHHV
1R                           )LUVW1DWjO%DQNRI        
                                   3XODVNLY&XUU\HWDO

                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
   .$5(1 1(/621 0225( &LUFXLW sXGJH  7KH
$SSHOODQWVLQWKLVDSSHDOFKDOOHQJHWKHUHPDQGWRVWDWHFRXUW
RI WZR FDVHV FRQVROLGDWHG E\ WKH GLVWULFW FRXUW mWKH
FRQVROLGDWHGFDVHl7KHILUVWFDVHmWKHUHPRYHGFDVHlZDV
LQLWLDWHGLQVWDWHFRXUWE\WKH)LUVW1DWLRQDO%DQNRI3XODVNL
mWKH%DQNlDJDLQVWYDULRXVPHPEHUVRIWKH&XUU\IDPLO\DV
ZHOO DV WZR &XUU\RZQHG SDUWQHUVKLSV $SSHOOHHV sRKQ 7
&XUU\&DUUROO0&XUU\&DWK\&XUU\&RQQLH*&XUU\&	7
3DUWQHUVKLS DQG &	& 3DUWQHUVKLS KHUHLQDIWHU mWKH &XUU\
)DPLO\ GHIHQGDQWVl  7KH &XUU\ )DPLO\ GHIHQGDQWV WKHQ
FRXQWHUFODLPHGDQGLPSOHDGHGWKH%DQNjVSUHVLGHQW:LOOLDP
5+RUQHm+RUQHlDVDWKLUGSDUW\GHIHQGDQWDQG+RUQH
UHPRYHG WKH FDVH WR IHGHUDO FRXUW  7KH VHFRQG FDVH mWKH
IHGHUDOFDVHlZDVILOHGLQIHGHUDOFRXUWE\$SSHOOHHsRKQQLH
0&XUU\msRKQQLH&XUU\lWKHPRWKHURUPRWKHULQODZRI
sRKQ7&XUU\&DUUROO0&XUU\&DWK\&XUU\DQG&RQQLH*
&XUU\$SSHOODQWV+HQU\+HQU\	6SHHU3&5REHUW&
+HQU\DQGsRH:+HQU\sUmWKH+HQU\VlZHUHQDPHGDV
GHIHQGDQWVLQWKHVHFRQGIHGHUDOLQLWLDWHGDFWLRQDQGDGGHGDV
WKLUGSDUW\GHIHQGDQWVLQWKHILUVWVWDWHLQLWLDWHGDFWLRQDOORI
WKH FODLPV DJDLQVW WKH +HQU\V KRZHYHU ZHUH VWDWHODZ
FODLPV$IWHUWKHGLVPLVVDORIDOORWKHUGHIHQGDQWVLQFOXGLQJ
+RUQHDQGDOOIHGHUDOFODLPVWKHGLVWULFWFRXUWUHPDQGHGWKH
VWDWHODZ FODLPV WKDW UHPDLQHG DJDLQVW WKH +HQU\V LQ WKH
FRQVROLGDWHG FDVH WR VWDWH FRXUW  7KH +HQU\V QRZ DSSHDO
DUJXLQJWKDWWKHGLVWULFWFRXUWVKRXOGKDYHGLVPLVVHGZLWKRXW
SUHMXGLFHWKH&XUU\)DPLO\GHIHQGDQWVjDQGsRKQQLH&XUU\jV
FODLPVUDWKHUWKDQUHPDQGWKHPWRVWDWHFRXUW
  %HFDXVHZHFRQFOXGHWKDWWKLUGSDUW\GHIHQGDQWVPD\QRW
UHPRYHDQDFWLRQWRIHGHUDOFRXUWDQGWKXVWKDWWKHUHPRYHG
FDVHZDVUHPRYHGLPSURSHUO\WRIHGHUDOFRXUWZH$)),50
WKH GLVWULFW FRXUWjV UHPDQG RI WKH FDVH RQ WKHVH JURXQGV
+RZHYHUZH5(9(56(WKHGLVWULFWFRXUWjVUHPDQGRIWKH
       )LUVW1DWjO%DQNRI                             1R       1R                           )LUVW1DWjO%DQNRI        
        3XODVNLY&XUU\HWDO                                                                             3XODVNLY&XUU\HWDO

UHPDLQLQJFODLPVLQWKHIHGHUDOFDVHEHFDXVHDFDVHLQLWLDWHG            FODLPV DUH GLVPLVVHG EHIRUH WULDO WKH EDODQFH RI
LQIHGHUDOFRXUWFDQQRWEHUHPDQGHGWRVWDWHFRXUW)RUWKLV             FRQVLGHUDWLRQVXVXDOO\ZLOOSRLQWWRGLVPLVVLQJWKHVWDWHODZ
UHDVRQ ZH 5(0$1' WR WKH GLVWULFW FRXUW IRU IXUWKHU               FODLPVRUUHPDQGLQJWKHPWRVWDWHFRXUWLIWKHDFWLRQZDV
SURFHHGLQJVLQWKHIHGHUDOFDVH                                          UHPRYHGlHPSKDVLVDGGHG
                       ,%$&.*5281'                                       7KXVWKHGLVWULFWFRXUWHUUHGLQUHPDQGLQJsRKQQLH&XUU\jV
                                                                          FODLPVWRVWDWH FRXUW2QWKLVSRLQWZHYDFDWHWKHGLVWULFW
   5REHUW0&XUU\KHUHLQDIWHUm0LNH&XUU\lZDVIRUPHUO\                FRXUWjV UHPDQG RUGHU DQG UHPDQG IRU WKH GLVWULFW FRXUW WR
FKLHIH[HFXWLYHRIILFHURIWKH%DQN7KLVSRVLWLRQHQDEOHG               GHWHUPLQH ZKHWKHU WR GLVPLVV sRKQQLH &XUU\jV VWDWHODZ
KLPWRRSHUDWHDFKHFNNLWLQJVFKHPHLQYROYLQJDQXPEHURI                FODLPV RU WR FRQVLGHU KHU FODLPV RQ WKH PHULWV SXUVXDQW WR
FKHFNLQJDFFRXQWVWKDWKHDQGRWKHUPHPEHUVRIWKH&XUU\                  F
)DPLO\ FRQWUROOHG  $V SDUW RI WKLV VFKHPH 0LNH &XUU\
DOOHJHGO\H[HFXWHGDQXPEHURISURPLVVRU\QRWHVLQWKHQDPHV                                   ,,,&21&/86,21
RI RWKHU IDPLO\ PHPEHUV DV ZHOO DV RI IDPLO\RZQHG
EXVLQHVVHV$IWHUVRPHGHWDLOVRI0LNH&XUU\jVVFKHPHFDPH                 )RU WKH IRUHJRLQJ UHDVRQV ZH $)),50 LQ SDUW
WROLJKWWKH%DQNRQ2FWREHUILOHGILYHODZVXLWVLQ           5(9(56(LQSDUWDQG5(0$1'IRUIXUWKHUSURFHHGLQJV
7HQQHVVHH VWDWH FRXUW WR FROOHFW RQ WKHVH QRWHV DJDLQVW WKH      FRQVLVWHQWZLWKWKLVRSLQLRQ
&XUU\ )DPLO\ PHPEHUV ZKRVH VLJQDWXUHV 0LNH &XUU\ KDG
DOOHJHGO\ IRUJHG  7KH &XUU\ )DPLO\ GHIHQGDQWV
FRXQWHUFODLPHGDJDLQVWWKH%DQNDQGLPSOHDGHGFHUWDLQ%DQN
RIILFHUV LQFOXGLQJ +RUQH  7KH &XUU\ )DPLO\ GHIHQGDQWV
DOOHJHGWKDW+RUQHDQGWKH%DQNKDGYLRODWHGYDULRXVIHGHUDO
EDQNLQJODZV7KLUG3DUW\'HIHQGDQW+RUQHWKHQUHPRYHG
WKHFDVHWRIHGHUDOFRXUWEDVHGRQWKDWFRXUWjVIHGHUDOTXHVWLRQ
MXULVGLFWLRQRQ0D\6HHsRLQW$SSHQGL[ms$lDW
1HLWKHUWKHSDUWLHVQRUWKHGLVWULFWFRXUWHYHUTXHVWLRQHG
WKHSURSULHW\RIUHPRYDOE\+RUQH
  7KH GLVWULFW FRXUW VXEVHTXHQWO\ GLVPLVVHG IRXU RI WKH
%DQNjVILYHFDVHVDJDLQVWWKH&XUU\)DPLO\GHIHQGDQWVDQG
JDYHOHDYHIRUWKH%DQNWRILOHDQDPHQGHGFRPSODLQWLQWKH
UHPRYHGFDVHWKDWZRXOGLQFOXGHDOORILWVFODLPVDJDLQVWWKH
GHIHQGDQWV6HHs$DW7KLVDPHQGHGFRPSODLQW
ZDVILOHGLQ6HSWHPEHU  ,Q $XJXVWWKH&XUU\



    
     7KH %DQNjV DPHQGHG FRPSODLQW LQFOXGHG sRKQQLH 0 &XUU\ DV D
GHIHQGDQW VHH s$ DW  LQ DGGLWLRQ WR WKH &XUU\ )DPLO\ GHIHQGDQWV
    )LUVW1DWjO%DQNRI                             1R       1R                                )LUVW1DWjO%DQNRI            
      3XODVNLY&XUU\HWDO                                                                                  3XODVNLY&XUU\HWDO

&7KH3URSULHW\RI5HPDQGLQJWKH)HGHUDO&DVH                         )DPLO\GHIHQGDQWVPRYHGWKHIHGHUDOGLVWULFWFRXUWWRSHUPLW
                                                                        WKHPWRDPHQGWKHLUFRXQWHUFODLPLQWKHUHPRYHGFDVHWRDGG
   7KHGLVWULFWFRXUWUHPDQGHGWKHUHPDLQLQJVWDWHODZFODLPV           WKH +HQU\V DV WKLUGSDUW\ GHIHQGDQWV DOOHJLQJ OHJDO
DJDLQVW WKH +HQU\V LQ WKH IHGHUDO FDVH WR VWDWH FRXUW HYHQ   PDOSUDFWLFH JURVV QHJOLJHQFH UHFNOHVVQHVV DQG GXUHVV
WKRXJKWKDWFDVHZDVLQLWLDWHGLQIHGHUDOFRXUW2QDSSHDOWKH        DJDLQVWWKH+HQU\V7KHGLVWULFWFRXUWJUDQWHGWKLVPRWLRQLQ
+HQU\V HPSKDWLFDOO\ DUJXH WKDW m>D@ GLVWULFW FRXUW FDQQRW        )HEUXDU\6HHs$DW
UHPDQGDFDVHWRDVWDWHFRXUWZKHUHWKDWFDVHZDVRULJLQDOO\
ILOHGLQIHGHUDOFRXUWl$SSHOODQWjV%UDWHPSKDVLVLQ              0HDQZKLOHSDUDOOHOOLWLJDWLRQLQYROYLQJPDQ\RIWKHVDPH
RULJLQDO  7KH &XUU\ )DPLO\ GHIHQGDQWV FRXQWHU WKDW WKH        SDUWLHVZDVLQLWLDWHGLQWKH0LGGOH'LVWULFWRI7HQQHVVHHLQ
GLVWULFWFRXUWGLGQRWHUULQUHPDQGLQJsRKQQLH&XUU\jVFODLPV          $XJXVWZKHQ$SSHOOHHsRKQQLH&XUU\VXHGWKH%DQNWKH
LQWKHIHGHUDOFDVHWRVWDWHFRXUWHYHQWKRXJKWKRVHFODLPV            +HQU\V DQG RWKHU GHIHQGDQWV RQ D QXPEHU RI WKHRULHV
ZHUHILOHGRULJLQDOO\LQIHGHUDOFRXUWEHFDXVHWKHGLVWULFWFRXUW      LQFOXGLQJWKHYLRODWLRQRIIHGHUDOEDQNLQJODZVDQGDJDLQVW
KDGFRQVROLGDWHGWKHWZRFDVHV                                         WKH+HQU\VOHJDOPDOSUDFWLFH
  7KH+HQU\VKDYHWKHEHWWHURIWKLVDUJXPHQWsRKQVRQY                 7KXVWKH+HQU\V$SSHOODQWVLQWKHSUHVHQWFDVHDQGRWKHU
0DQKDWWDQ5\&R86KHOGWKDW               SDUWLHVZHUHEHLQJVXHGE\ERWKsRKQQLH&XUU\DQGWKH&XUU\
mFRQVROLGDWLRQLVSHUPLWWHGDVDPDWWHURIFRQYHQLHQFHDQG              )DPLO\ GHIHQGDQWV $SSHOOHHV LQ WKH SUHVHQW FDVH LQ WZR
HFRQRP\LQDGPLQLVWUDWLRQEXWGRHVQRWPHUJHWKHVXLWVLQWR            VHSDUDWHFDVHVLQWKH0LGGOH'LVWULFWRI7HQQHVVHH7KHVH
DVLQJOHFDXVHRUFKDQJHWKHULJKWVRIWKHSDUWLHVl'HVSLWH          FDVHVZHUHFRQVROLGDWHGE\FRXUWRUGHURQ)HEUXDU\
WKHFRQVROLGDWLRQRIWKHWZRDFWLRQVLQWKHSUHVHQWFDVHWKHQ         6HHs$DW7KH%DQNWKH&XUU\)DPLO\GHIHQGDQWVDQG
WKHDFWLRQVGLGmQRWPHUJHLQWRDVLQJOHFDXVHl7KH7KLUG       sRKQQLH&XUU\DVZHOODVRWKHUSDUWLHVVXEVHTXHQWO\VHWWOHG
&LUFXLW DGGUHVVHG D VRPHZKDW VLPLODU IDFWXDO VLWXDWLRQ LQ        PRVWRIWKHLUFODLPV7KHGLVWULFWFRXUWGLVPLVVHGWKHVHWWOHG
%UDGJDWH$VVRFLDWHVDQGKHOGWKDW                                       FODLPVLQRUGHUVLVVXHGLQ$SULODQG0D\$VDUHVXOW
                                                                        WKHRQO\UHPDLQLQJFODLPVLQWKHFRQVROLGDWHGFDVHZHUHWKH
  ZKHQDUHPRYHGVWDWHFRXUWFDVHKDVEHHQFRQVROLGDWHG                 VWDWHODZ FODLPV RI WKH $SSHOOHHV WKH &XUU\ )DPLO\
  ZLWK D FDVH RULJLQDOO\ ILOHG LQ IHGHUDO FRXUW DQG WKH        GHIHQGDQWV DQG sRKQQLH &XUU\ DJDLQVW WKH $SSHOODQWV WKH
  GLVWULFW FRXUW GHWHUPLQHV WKDW LW ODFNV VXEMHFW PDWWHU         +HQU\V
  MXULVGLFWLRQRYHUERWKWKHIHGHUDODQGVWDWHFRPSRQHQWVRI
  WKH FDVH WKH FRXUW PXVW DSSO\ WKH UXOHV SHUWDLQLQJ WR         7KH+HQU\VVXEVHTXHQWO\ILOHGDPRWLRQWRGLVPLVVIRUODFN
  GLVPLVVDODQGUHPDQGDVLIWKHFDVHVKDGUHWDLQHGWKHLU               RIVXEMHFWPDWWHUMXULVGLFWLRQRQ0D\6HHs$DW
  VHSDUDWHLGHQWLWLHVDQGKDGQHYHUEHHQFRQVROLGDWHG                  7KH+HQU\VDUJXHGWKDWEHFDXVHWKHIHGHUDOFODLPV
                                                                        DJDLQVW WKH %DQN DQG LWV RIILFHUV KDG EHHQ GLVPLVVHG WKH
 )G DW   7KXV ZKLOH D GLVWULFW FRXUW KDV WKH
GLVFUHWLRQWRUHPDQGDFDVHUHPRYHGIURPVWDWHFRXUWLWPD\
QRWUHPDQGDFDVHWKDWZDVQHYHUUHPRYHGIURPVWDWHFRXUW                  
HYHQ WKRXJK WKH WZR FDVHV KDYH EHHQ FRQVROLGDWHG IRU                  sRKQQLH &XUU\ ZDV QRW D SDUW\ WR WKH &XUU\ )DPLO\ GHIHQGDQWVj

SXUSRVHVRIFRQYHQLHQFHDQGDGPLQLVWUDWLRQ6HHLGDW            VHFRQG DPHQGHG FRXQWHUFRPSODLQW DQG WKLUGSDUW\ FRPSODLQW ILOHG
                                                                        0DUFK   ZKLFK DGGHG WKH +HQU\V DV WKLUGSDUW\ GHIHQGDQWV LQ WKH
6HHDOVR0XVVRQ7KHDWULFDO,QFY)HG([SUHVV&RUS            UHPRYHG DFWLRQ 6HH s$ DW  $W WKH WLPH sRKQQLH &XUU\ ZDV DOUHDG\
 )G   WK &LU  m:KHQ DOO IHGHUDO       VXLQJ WKH +HQU\V DV WKH SODLQWLII LQ WKH IHGHUDO LH QRQUHPRYHG DFWLRQ
                                                                        DV GLVFXVVHG LQIUD
     )LUVW1DWjO%DQNRI                            1R       1R                             )LUVW1DWjO%DQNRI        
      3XODVNLY&XUU\HWDO                                                                              3XODVNLY&XUU\HWDO

IHGHUDO GLVWULFW FRXUW mQR ORQJHU >KDG@ VXEMHFW PDWWHU          WRUWIHDVRUV UHVSRQVLEOH IRU WKH SODLQWLIIjV LQMXU\ DUH QRW
MXULVGLFWLRQl RYHU WKH &XUU\ )DPLO\ GHIHQGDQWVj UHPDLQLQJ        VHSDUDWH DQG LQGHSHQGHQW  6HH LG DW   7KH )LIWK
FODLPVs$DW0RUHSUHFLVHO\WKH+HQU\VDUJXHGWKDW         &LUFXLW H[SOLFLWO\ DGRSWHG WKLV GLVWLQFWLRQ LQ ,Q UH :LOVRQ
DOWKRXJKWKHGLVWULFWFRXUWUHWDLQHGVXSSOHPHQWDOMXULVGLFWLRQ         ,QGXVWULHV,QF)GWK&LU
RYHUWKH&XUU\)DPLO\GHIHQGDQWVjVWDWHODZFODLPVmWKHUH
>ZD@V QR UHDVRQ ZK\ >WKH GLVWULFW FRXUW@ VKRXOG H[HUFLVH         7KH0DUVK,QYHVWPHQWGLVWLQFWLRQKRZHYHUZDVEDVHGRQ
VXSSOHPHQWDOMXULVGLFWLRQRYHUlWKRVHFODLPVs$DW            WKHSUHYHUVLRQRIFZKLFKSHUPLWWHGUHPRYDO
                                                                       RIDVHSDUDWHDQGLQGHSHQGHQWFODLPRQWKHEDVLVRIGLYHUVLW\
   7KHGLVWULFWFRXUWmJUDQWHGlWKH+HQU\VjPRWLRQLQDQRUGHU         6HH0DUVK,QY)6XSSDWm>7@KHUHVSHFWLYHFRXUWV
LVVXHG RQ sXQH   ZKLFK ERWK GLVPLVVHG ZLWKRXW         KHOGWKDWGLYHUVLW\LQWKHLQGHPQLW\FODLPPDGHWKHHQWLUHFDVH
SUHMXGLFH WKH &XUU\ 'HIHQGDQWVj SHQGLQJ FODLPV DQG              UHPRYDEOH XQGHU VHFWLRQ Fl VHH DOVR &DUO +HFN
UHPDQGHG WKRVH FODLPV WR VWDWH FRXUW  ,Q H[SODLQLQJ LWV      (QJjUV  )G DW  QRWLQJ GLYHUVLW\ RI FLWL]HQVKLS
GHFLVLRQWKHGLVWULFWFRXUWDOWHUQDWHGEHWZHHQVWDWLQJWKDWLW        EHWZHHQWKLUGSDUW\GHIHQGDQWLQVXUHUDQGWKLUGSDUW\SODLQWLII
mODFN>HG@ MXULVGLFWLRQ WR DGMXGLFDWH WKH UHPDLQLQJ VWDWH         LQVXUHG  :KLOH LQVXUHUV ZLOO RIWHQ EH GLYHUVH IURP WKRVH
FODLPVl DQG VWDWLQJ LQ WKH QH[W VHQWHQFH WKDW mWKH &RXUW   ZKRP WKH\ LQVXUH VXFK LQVXUDQFHEDVHG LQGHPQLW\ FODLPV
GHFOLQHV WR H[HUFLVH SHQGHQW MXULVGLFWLRQ RQ WKH VWDWH ODZ     ZLOO UDUHO\ LI HYHU EH UHPRYDEOH RQ WKH EDVLV RI D IHGHUDO
FODLPVls$DW7KHGLVWULFWFRXUWWKHQVWDWHGWKDWm>W@KH     TXHVWLRQ7KXVLWLVQRWFOHDUZKDWUHPDLQVRIWKHUHDVRQLQJ
GLVFUHWLRQWRUHPDQGWRVWDWHFRXUWlZDVZLWKLQLWVDXWKRULW\         RI&DUO+HFNDIWHUWKHDPHQGPHQWWRF6HH
s$DWFLWLQJ/RQJY%DQGR0IJRI$P,QF)G          $XWR 7UDQVSRUWHV *DFHOD 6$ GH &9 Y %RUGHU )UHLJKW
 WK &LU   7KH GLVWULFW FRXUW H[HUFLVHG WKLV      'LVWULE	:DUHKRXVH,QF)6XSS6'
GLVFUHWLRQ LQ UHPDQGLQJ WKH &XUU\ )DPLO\ GHIHQGDQWVj             7H[m>6HFWLRQF@KDVEHHQUHFHQWO\DPHQGHG
UHPDLQLQJVWDWHODZFODLPVGHVSLWHLWVDVVHUWHGGLVPLVVDORI          DQG WKH DPHQGPHQW UHPRYHV WKH XQGHUSLQQLQJV RI >&DUO
WKRVHVDPHFODLPVLQWKHVDPHRUGHU7KHGLVSRVLWLRQPDGH             +HFN@l  ,W LV FOHDU KRZHYHU WKDW D WKLUGSDUW\ FODLP RI
QRUHIHUHQFHWRsRKQQLH&XUU\jVFODLPVDJDLQVWWKH+HQU\V             LQGHPQLILFDWLRQEDVHGVROHO\RQWKHGLYHUVLW\RIFLWL]HQVKLS
                                                                       RIDQLQVXUHUDQGDQLQVXUHGVXFKDVWKDWLQYROYHGLQ&DUO
   7KH+HQU\VWKHQPRYHGWKHGLVWULFWFRXUWWRDOWHURUDPHQG          +HFNLVQRWSUHVHQWO\UHPRYDEOHSXUVXDQWWRF
LWVUHPDQGRUGHUDUJXLQJWKDWWKHGLVWULFWFRXUWKDGIDLOHGWR
GLVPLVVsRKQQLH&XUU\jVFODLPVDJDLQVWWKHPLQLWVSUHYLRXV              )RUWKHVHUHDVRQVZHFRQFOXGHWKDWWKHUHPRYHGFDVHZDV
RUGHUDQGWKDWDVWKHFRXUWKDGGLVPLVVHGWKH&XUU\)DPLO\            LPSURSHUO\ UHPRYHG WR IHGHUDO FRXUW E\ 7KLUG3DUW\
GHIHQGDQWVjFODLPVWKHUHZDVQRWKLQJOHIWWRUHPDQGWRVWDWH          'HIHQGDQW+RUQHDQGWKDWDVDUHVXOWWKHGLVWULFWFRXUWQHYHU
FRXUW6HHs$DW7KH+HQU\VWKXVUHTXHVWHGWKDWWKH        KDGVXEMHFWPDWWHUMXULVGLFWLRQRYHUWKHUHPRYHGFDVH&I
GLVWULFW FRXUW DPHQG WKH RUGHU WR GLVPLVV sRKQQLH &XUU\jV      0LFK$IILOLDWHG+HDOWKFDUH6\V,QFY&&6\V&RUS
FODLPV DJDLQVW WKHP DQG WR VWDWH WKDW QRQH RI WKH FODLPV     )GWK&LUKROGLQJWKDWGLVWULFWFRXUWGLG
DJDLQVWWKHPKDGEHHQUHPDQGHGWRVWDWHFRXUW6HHs$DW            QRWKDYHVXEMHFWPDWWHUMXULVGLFWLRQRYHULPSURSHUO\UHPRYHG
  7KH GLVWULFW FRXUW UHVSRQGHG WR WKLV PRWLRQ E\       FDVH7KHGLVWULFWFRXUWjVUHPDQGWRWKHVWDWHFRXUWRIWKH
UHLQVWDWLQJDOORIWKH&XUU\)DPLO\GHIHQGDQWVjFODLPVDJDLQVW         UHPRYHGFDVHZDVWKHUHIRUHSURSHUDQGZHDIILUPWKDWSDUWRI
WKH +HQU\V QRWLQJ DJDLQ WKDW LW ODFNHG VXEMHFW PDWWHU         WKHGLVWULFWFRXUWjVRUGHURQWKHVHJURXQGV:HDGGUHVVWKH
MXULVGLFWLRQRYHUWKRVHFODLPVGLVPLVVLQJWKRVHFODLPVDQG           UHPDQGRIWKHIHGHUDOFDVHLQWKHQH[WVHFWLRQ
WKHQ UHPDQGLQJ mDOO UHPDLQLQJ FODLPV DJDLQVW WKH +HQU\
    )LUVW1DWjO%DQNRI                             1R      1R                           )LUVW1DWjO%DQNRI         
      3XODVNLY&XUU\HWDO                                                                            3XODVNLY&XUU\HWDO

  SDUW\ SODLQWLII IRU DOO RU SDUW RI WKH SODLQWLIIjV FODLP    GHIHQGDQWVWRWKH&KDQFHU\&RXUWRI*LOHV&RXQW\ls$DW
  DJDLQVWWKHWKLUGSDUW\SODLQWLII                                   
7HQQ 5 &LY 3   7KXV XQGHU 7HQQHVVHH VWDWH             7KLVDSSHDOIROORZHG7KH+HQU\VDUJXHRQDSSHDOWKDWWKH
SURFHGXUDOUXOHV7KLUG3DUW\'HIHQGDQW+RUQHFRXOGRQO\EH            GLVWULFWFRXUWODFNHGWKHDXWKRULW\WRUHPDQGWKHUHPDLQLQJ
LPSOHDGHG E\ WKH &XUU\ )DPLO\ GHIHQGDQWV EDVHG RQ KLV          VWDWHODZFODLPVDJDLQVWWKHPWRVWDWHFRXUWDQGWKXVWKDWWKH
DOOHJHGOLDELOLW\WRWKH&XUU\)DPLO\GHIHQGDQWVEDVHGRQWKH          GLVWULFWFRXUWVKRXOGKDYHGLVPLVVHGZLWKRXWSUHMXGLFHWKH
3ODLQWLII %DQNjV DFWLRQ DJDLQVW WKHP  8QGHU WKHVH              UHPDLQLQJFODLPVDJDLQVWWKHP
FLUFXPVWDQFHV WKH &XUU\ )DPLO\ GHIHQGDQWVj WKLUGSDUW\
FODLPV DJDLQVW +RUQH mDURVH IURP DQ LQWHUORFNHG VHULHV RI                              ,,$1$/<6,6
WUDQVDFWLRQVl DQG WKXV XQGHU )LQQ WKRVH FODLPV GLG QRW
DPRXQWWRDVHSDUDWHDQGLQGHSHQGHQWFDXVHRIDFWLRQXQGHU             $$SSHOODWHsXULVGLFWLRQ
F,QGHHGXQGHU7HQQHVVHHjVUXOHVRILPSOHDGHUZH
GRQRWWKLQNWKDWWKLUGSDUW\FODLPVFDQVDWLVI\WKHVHSDUDWH            $SSHOODWHUHYLHZRIUHPDQGRUGHUVLVOLPLWHGE\86&
DQG LQGHSHQGHQW FDXVH RI DFWLRQ UHTXLUHPHQW IRXQG LQ            G7KDWSURYLVLRQVWDWHVLQUHOHYDQWSDUWm$QRUGHU
F                                                             UHPDQGLQJ D FDVH WR WKH 6WDWH FRXUW IURP ZKLFK LW ZDV
                                                                       UHPRYHGLVQRWUHYLHZDEOHRQDSSHDORURWKHUZLVHl:H
  7KHGHFLVLRQVWRWKHFRQWUDU\KDYHUHDVRQHGPLVWDNHQO\LQ          KDYHKHOGKRZHYHUWKDWGPHDQVRQO\WKDWDUHPDQG
RXU YLHZ WKDW DQ LQGHPQLW\ FODLP PD\ EH FRQVLGHUHG D         RUGHULVXQUHYLHZDEOHRQDSSHDOZKHQWKHFDVHZDVUHPDQGHG
mVHSDUDWH DQG LQGHSHQGHQWl FODLP XQGHU  F  6HH         EDVHGRQWKHGLVWULFWFRXUWjVFRQFOXVLRQWKDWLWODFNHGVXEMHFW
HVSHFLDOO\ &DUO +HFN (QJjUV  )G DW   7KH &DUN      PDWWHU MXULVGLFWLRQ RYHU WKH UHPRYHG FDVH DW WKH WLPH RI
+HFNFRXUWFRQFOXGHGWKDWLQGHPQLW\DFWLRQVDUHVHSDUDWHDQG           UHPRYDO7KXVDUHPDQGRUGHULVUHYLHZDEOHRQDSSHDOZKHQ
LQGHSHQGHQW EHFDXVH m>V@XFK DFWLRQV FDQ EH DQG RIWHQ DUH       WKH GLVWULFW FRXUW FRQFOXGHV WKDW WKH DFWLRQ ZDV SURSHUO\
EURXJKW LQ D VHSDUDWH VXLW IURP WKDW ILOHG E\ WKH RULJLQDO   UHPRYHGEXWWKDWWKHFRXUWORVWVXEMHFWPDWWHUMXULVGLFWLRQDW
SODLQWLIILQWKHPDLQFODLPl,G,QUHDFKLQJWKLVFRQFOXVLRQ       VRPHSRLQWSRVWUHPRYDO6HH/RQJY%DQGR0IJRI$P
KRZHYHU WKH &DUO +HFN FRXUW IDLOHG WR DSSO\ )LQQ LQ          ,QF  )G   WK &LU  KROGLQJ WKDW
GHWHUPLQLQJ ZKHWKHU D FDXVH RI DFWLRQ LV VHSDUDWH DQG          DSSHOODWHMXULVGLFWLRQWRFRQVLGHUUHPDQGRUGHUH[LVWHGZKHUH
LQGHSHQGHQWIURPWKHSODLQWLIIjVXQGHUO\LQJFODLPV,QWKH          GLVWULFW FRXUW UHPDQGHG UHPDLQLQJ VWDWHODZ FODLPV DIWHU
LPPHGLDWHZDNHRI&DUO+HFNDGLVWULFWFRXUWLQWKH(DVWHUQ           GLVPLVVDORISODLQWLIIjVIHGHUDOODZFODLPVLQIHGHUDOTXHVWLRQ
'LVWULFWRI/RXLVLDQDIRUPXODWHGDPRUHHODERUDWHWKHRU\IRU           FDVHVHHDOVR9DQ0HWHUY6WDWH)DUP)LUH	&DV&R
H[SODLQLQJ ZKHQ DQ LQGHPQLW\ FODLP LV VHSDUDWH DQG              )GWK&LUm>,@IDGLVWULFWFRXUWGHWHUPLQHV
LQGHSHQGHQWXQGHU)LQQ6HH0DUVK,QY&RUSY/DQJIRUG             VXEMHFW PDWWHU MXULVGLFWLRQ WR KDYH H[LVWHG DW WKH WLPH RI
)6XSS('/DDIIjG)GWK             UHPRYDO \HW UHPDQGV IRU DOOHJHG ODFN RI VXEMHFW PDWWHU
&LU8QLW$SHUFXULDP7KH0DUVK,QYHVWPHQWFRXUW            MXULVGLFWLRQEDVHGRQVRPHSRVWUHPRYDOHYHQWVWKHUHPDQG
H[DPLQHG WKH SUHFHGHQWV DQG GHWHUPLQHG WKDW LQGHPQLW\            RUGHULVUHYLHZDEOHl%DOGULGJHY.\2KLR7UDQVS
FODLPV EURXJKW E\ GHIHQGDQWV DJDLQVW WKHLU LQVXUDQFH             ,QF)GWK&LUVDPH
SURYLGHUVVXFKDVLQ&DUO+HFNDUHVHSDUDWHDQGLQGHSHQGHQW
IURPWKHSODLQWLIIjVXQGHUO\LQJFODLPVXQGHU)LQQEXWWKDW             ,Q WKH SUHVHQW FDVH WKH GLVWULFW FRXUW FRQFOXGHG WKDW LW
FODLPVEURXJKWDJDLQVWWKLUGSDUW\GHIHQGDQWVDOOHJHGWREH            UHWDLQHG VXSSOHPHQWDO MXULVGLFWLRQ SXUVXDQW WR  86&
                                                                       DWRFRQVLGHUWKHUHPDLQLQJVWDWHODZFODLPVDJDLQVW
     )LUVW1DWjO%DQNRI                              1R       1R                            )LUVW1DWjO%DQNRI        
      3XODVNLY&XUU\HWDO                                                                               3XODVNLY&XUU\HWDO

WKH+HQU\VGHVSLWHWKHGLVPLVVDORIDOOIHGHUDOFODLPVLQWKH           LQWHUSUHWHG DV JHQHUDOO\ DXWKRUL]LQJ UHPRYDO LQ WKHVH
FRQVROLGDWHGFDVH7KHGLVWULFWFRXUWGHFOLQHGKRZHYHUWR             FRQWH[WVl7KXVHYHQLQWKHFRXUWVKROGLQJWKDWF
H[HUFLVHLWVVXSSOHPHQWDOMXULVGLFWLRQDQGLQVWHDGUHPDQGHG              SHUPLWVWKLUGSDUW\GHIHQGDQWVWRUHPRYHWRIHGHUDOFRXUWDV
WKRVHFODLPVWRVWDWHFRXUW7KHGLVWULFWFRXUWFRXOGQRWKDYH          DJHQHUDOSURSRVLWLRQWKRVHFRXUWVKDYHRIWHQKHOGWKDWWKH
FRQFOXGHGWKDWLWUHWDLQHGVXSSOHPHQWDOMXULVGLFWLRQRYHUWKRVH          WKLUGSDUW\FODLPVDWLVVXHGLGQRWVDWLVI\WKHmVHSDUDWHDQG
VWDWHODZFODLPVKDGLWGHWHUPLQHGWKDWLWQHYHUKDGVXEMHFW            LQGHSHQGHQWl UHTXLUHPHQW RI  F  6HH HJ 1HZ
PDWWHUMXULVGLFWLRQRYHUWKHUHPRYHGFDVH8QGHUWKHVHIDFWV           9HQWXUH *HDU ,QF Y )RQHKRXVH  ) 6XSS  
ZH KDYH MXULVGLFWLRQ WR UHYLHZ WKH GLVWULFW FRXUWjV RUGHU        1'1<KROGLQJWKDWmDWKLUGSDUW\FODLPFDQQRWEH
UHPDQGLQJWKH&XUU\)DPLO\GHIHQGDQWVjDQGsRKQQLH&XUU\jV               µVHSDUDWHDQGLQGHSHQGHQWjLILWLVVXEVWDQWLDOO\GHULYHGIURP
VWDWHODZFODLPVDJDLQVWWKH+HQU\VWRVWDWHFRXUW&I/RQJ           WKHVDPHVHWRIIDFWVRULILWLVFRQWLQJHQWLQVRPHZD\RQWKH
 )G DW  VHH DOVR LG DW  KROGLQJ WKDW XQGHU     SODLQWLIIjVQRQUHPRYDEOHFODLPlTXRWDWLRQRPLWWHG6RSHU
  GLVWULFW FRXUWV KDYH WKH GLVFUHWLRQ WR UHPDQG            Y.DKQ)6XSS'0GKROGLQJWKDW
UHPDLQLQJUHPRYHGVWDWHODZFODLPVWRVWDWHFRXUWDVZHOODV             WKLUGSDUW\ FODLP IRU LQGHPQLW\ XQGHU VWDWH ODZ ZDV QRW
WRGLVPLVVVXFKFODLPV                                                 mVHSDUDWHDQGLQGHSHQGHQWlXQGHUF&ROHPDQY$
                                                                         	'0DFK&R)6XSS	Q('&DO
   ,Q OLJKW RI WKH SUHFHGLQJ GLVFXVVLRQ KRZHYHU WKLV FDVH      KROGLQJWKDWUHPRYDOZDVLPSURSHUEHFDXVHWKHWKLUGSDUW\
SUHVHQWV D UDWKHU XQXVXDO VLWXDWLRQ  :H ZRXOG EH ZLWKRXW       FODLP ZDV QRW VHSDUDWH DQG LQGHSHQGHQW DQG QRWLQJ WKH
MXULVGLFWLRQWRUHYLHZWKLVUHPDQGRUGHUDWOHDVWZLWKUHVSHFW          SRWHQWLDOLQFRQVLVWHQF\RIWKDWSRVLWLRQ
WRWKHUHPRYHGFDVHLIWKHGLVWULFWFRXUWKDGGHWHUPLQHGWKDW
WKDWFDVHKDGEHHQLPSURSHUO\UHPRYHGDQGWKXVWKDWLWODFNHG               7KH WHVW IRU GHWHUPLQLQJ WKH H[LVWHQFH RI D VHSDUDWH DQG
VXEMHFWPDWWHUMXULVGLFWLRQRYHUWKHFDVHIURPWKHVWDUW:LWK          LQGHSHQGHQW FODLP RU FDXVH RI DFWLRQ XQGHU  F ZDV
UHVSHFWWRWKHUHPRYHGFDVHKRZHYHUZHFRQFOXGHLQIUDWKDW             HVWDEOLVKHG E\ WKH 6XSUHPH &RXUW LQ $PHULFDQ )LUH 	
WKDWFDVHZDVLPSURSHUO\UHPRYHGIURPVWDWHFRXUWnEHFDXVH              &DVXDOW\&RY)LQQ86m>:@KHUHWKHUH
WKLUGSDUW\GHIHQGDQWVFDQQRWUHPRYHFDVHVWRIHGHUDOFRXUWn            LV D VLQJOH ZURQJ WR SODLQWLII IRU ZKLFK UHOLHI LV VRXJKW
DQG WKXV WKDW LQ IDFW WKH GLVWULFW FRXUW QHYHU KDG VXEMHFW   DULVLQJIURPDQLQWHUORFNHGVHULHVRIWUDQVDFWLRQVWKHUHLVQR
PDWWHUMXULVGLFWLRQRYHUWKHUHPRYHGFDVH                               VHSDUDWH DQG LQGHSHQGHQW FODLP RU FDXVH RI DFWLRQ XQGHU
                                                                          Fl  /LNH )HGHUDO 5XOH RI &LYLO 3URFHGXUH 
  ,QRWKHUZRUGVRXUMXULVGLFWLRQRYHUWKDWSDUWRIWKHGLVWULFW        KRZHYHUVWDWHSURFHGXUDOUXOHVUHJDUGLQJWKLUGSDUW\SUDFWLFH
FRXUWjVUHPDQGRUGHULVEDVHGRQWKHGLVWULFWFRXUWjVIDLOXUHWR         RIWHQUHTXLUHWKDWLPSOHDGHGWKLUGSDUW\GHIHQGDQWVEHOLDEOH
QRWHLWVODFNRIVXEMHFWPDWWHUMXULVGLFWLRQIURPWKHVWDUW+DG        WRWKHWKLUGSDUW\SODLQWLIIGHIHQGDQWEDVHGRQWKHSODLQWLIIjV
WKHGLVWULFWFRXUWQRWHGVXDVSRQWHLWVODFNRIVXEMHFWPDWWHU         XQGHUO\LQJFODLPV7KHUHPRYHGFDVHZDVILOHGRULJLQDOO\
MXULVGLFWLRQRUKDGWKHSDUWLHVEURXJKWWKLVLVVXHWRWKHGLVWULFW      LQ 7HQQHVVHH VWDWH FRXUW  7HQQHVVHHjV YHUVLRQ RI 5XOH 
FRXUWjV DWWHQWLRQ ZH ZRXOG QRW KDYH DSSHOODWH MXULVGLFWLRQ       ZKLFKLVLGHQWLFDOWRIHGHUDO5XOHVWDWHVLQUHOHYDQWSDUW
RYHU WKLV DVSHFW RI WKH SUHVHQW DSSHDO  %HFDXVH RI WKLV
XQXVXDO VHW RI FLUFXPVWDQFHV WKLV DSSHDO SUHVHQWV D UDUH            $W DQ\ WLPH DIWHU FRPPHQFHPHQW RI WKH DFWLRQ D
RFFDVLRQ IRU DQ DSSHOODWH GHFLVLRQ RQ WKLUGSDUW\ UHPRYDO           GHIHQGLQJSDUW\DVDWKLUGSDUW\SODLQWLIIPD\FDXVHD
XQGHU86&2QO\WKH)LIWK6HYHQWKDQG(LJKWK               VXPPRQVDQGFRPSODLQWWREHVHUYHGXSRQDSHUVRQQRW
&LUFXLWVKDYH\HWDGGUHVVHGWKLVLVVXH$VGLVWULFWFRXUWVKDYH           DSDUW\WRWKHDFWLRQZKRLVRUPD\EHOLDEOHWRWKHWKLUG
QRWHG IURP WLPH WR WLPH m>P@RVW RI WKH FDVH ODZ RQ WKLV
    )LUVW1DWjO%DQNRI                             1R       1R                              )LUVW1DWjO%DQNRI           
      3XODVNLY&XUU\HWDO                                                                                3XODVNLY&XUU\HWDO

DGGLWLRQDODFWLRQVWDNHQE\WKHVDPHSDUW\,QFRQWUDVWWKH           VXEMHFWLVIURPGLVWULFWFRXUWVEHFDXVHRIWKHOLPLWHGULJKWRI
)HGHUDO5XOHVXVHYHU\GLIIHUHQWODQJXDJHZKHQUHIHUULQJWR             DSSHDO RI UHPDQG GHFLVLRQV DV SURYLGHG IRU LQ  86&
WKLUGSDUW\FODLPVZKLFKWKH5XOHVFRQVLVWHQWO\GHVFULEHDV            l%URRNRYHU)LQ6HUYV,QFY%HFNOH\)6XSS
EHLQJmDVVHUW>HG@lUDWKHUWKDQMRLQHG6HHHJ)HG5&LY         G:'.\
3   $FFRUGLQJO\ ZKHQ  F DOORZV UHPRYDO RI
FHUWDLQ FODLPV WKDW DUH mMRLQHGl WKH VWDWXWH LV PRVW OLNHO\      2XU MXULVGLFWLRQ ZLWK UHVSHFW WR WKH UHPDQG RUGHU LQ WKH
UHIHUULQJQRWWRRWKHUFODLPVEURXJKWE\RWKHUSDUWLHVEXWWR          IHGHUDOFDVHLVRQDVRPHZKDWGLIIHUHQWIRRWLQJ7KHGLVWULFW
PXOWLSOHFODLPVEURXJKWE\WKHVDPHSDUW\                              FRXUWjVVXEMHFWPDWWHUMXULVGLFWLRQLQWKDWFDVHSXUVXDQWWR
                                                                        86&LVDEXQGDQWO\FOHDU6HHs$DW
   *LYHQWKHODQJXDJHRIWKHVWDWXWHDQGWKHUXOHWKDWUHPRYDO          &RPSODOOHJLQJYLRODWLRQRIIHGHUDOEDQNLQJ
VWDWXWHVDUHWREHFRQVWUXHGQDUURZO\ZHUHMHFWWKHYLHZWKDW          ODZV%HFDXVHPRUHRYHUWKDWFDVHZDVQHYHUUHPRYHGIURP
mMRLQHGlDVXVHGLQFVKRXOGEHLQWHUSUHWHGEURDGO\           VWDWHFRXUWWKHGLVWULFWFRXUWFRXOGQRWKDYHFRQFOXGHGWKDWLW
DQGFRQFOXGHLQVWHDGWKDWLWVKRXOGEHLQWHUSUHWHGQDUURZO\WR          ODFNHGMXULVGLFWLRQDWWKHWLPHRIUHPRYDO7KXVWKHGLVWULFW
DSSO\RQO\WRFODLPVMRLQHGE\WKHSODLQWLIILQWKHRULJLQDOVWDWH      FRXUWjVUHPDQGRUGHULVUHYLHZDEOHRQDSSHDO6HH%UDGJDWH
FRXUWDFWLRQ                                                           $VVRFV,QFY)HOORZV5HDG	$VVRFV,QF)G
                                                                         G &LU  KROGLQJ UHPDQG RUGHU UHYLHZDEOH
   $OWKRXJK RXU FRQFOXVLRQ RQ WKLV LVVXH LV EDVHG RQ RXU       XQGHUVLPLODUFLUFXPVWDQFHV
FRQVWUXFWLRQRIWKHVWDWXWHLWVHOIZHQRWHWKDWLQPRVWLIQRW
DOOFDVHVWKLUGSDUW\FODLPVZLOOQRWVDWLVI\WKHmVHSDUDWHDQG       % 7KH 3URSULHW\ RI 7KLUG3DUW\ 5HPRYDO 8QGHU 
LQGHSHQGHQWlUHTXLUHPHQWRIF$VWKH7KRPDVFRXUW                86&
REVHUYHG
                                                                           ,Q KLV QRWLFH RI UHPRYDO 7KLUG3DUW\ 'HIHQGDQW +RUQH
  $ WKLUGSDUW\ FRPSODLQW LV XVXDOO\ FRQGLWLRQDO RQ WKH          DVVHUWHGWZREDVHVIRUUHPRYDO86&EDQGF
  VXFFHVVRIWKHPDLQFODLP7KHPRVWFRPPRQWKLUGSDUW\               DOWKRXJK KH FOHDUO\   LQWHQGHG  D ZLWK UHVSHFW WR WKH
  FODLPLVDFODLPIRULQGHPQLW\WKDWLVDFODLPWKDWVKRXOG          IRUPHU EDVLV  $V QRWHGVXSUD QHLWKHU WKH SDUWLHV QRU WKH
  WKHGHIHQGDQWWKLUGSDUW\SODLQWLIIEHKHOGOLDEOHWRWKH           GLVWULFWFRXUWUDLVHGWKHSURSULHW\RIUHPRYDOE\DWKLUGSDUW\
  SODLQWLII WKH WKLUGSDUW\ GHIHQGDQW PXVW UHLPEXUVH WKH         GHIHQGDQW:HKDYHKRZHYHUDQLQGHSHQGHQWREOLJDWLRQWR
  GHIHQGDQW IRU WKH FRVW RI VDWLVI\LQJ WKH SODLQWLIIjV           FRQVLGHUERWKWKHGLVWULFWFRXUWjVDQGRXURZQVXEMHFWPDWWHU
  MXGJPHQW                                                             MXULVGLFWLRQ6HHHJ%DLUGY1RUWRQ)G
                                                                        WK&LU+DYLQJFDUHIXOO\FRQVLGHUHGWKHLVVXHZH
)GDW6HHDOVRHJ+ROORZD\Y*DPEOH6NRJPR            FRQFOXGHWKDWQHLWKHUDQRUFSURYLGHVWKLUG
,QF)6XSS1',OOm>,@WLVGLIILFXOW        SDUW\GHIHQGDQWVZLWKWKHULJKWWRUHPRYHDFDVHWRIHGHUDO
WRLPDJLQHDWKLUGSDUW\FRPSODLQWZKLFKLVQRWµGHSHQGHQWj             FRXUW
RQWKHPDLQFDXVHRIDFWLRQVLQFHXQGHUHYHQWKHPRVWOLEHUDO
VWDWHWKLUGSDUW\SUDFWLFHDFORVHUHODWLRQEHWZHHQWKHWKLUG
SDUW\FODLPDQGWKHFDVHLQFKLHILVDPLQLPDOUHTXLUHPHQWl              
& &KDUOHV $ODQ :ULJKW $UWKXU 5 0LOOHU 	 (GZDUG +                6HFWLRQ E SODFHV DQ LPSRUWDQW OLPLWDWLRQ RQ WKH ULJKW RI
                                                                        UHPRYDO FUHDWHG LQ  D LQ FDVHV LQ ZKLFK GLYHUVLW\ LV DVVHUWHG EXW
&RRSHU)HGHUDO3UDFWLFHDQG3URFHGXUHDWGHG            LW GRHV QRW HVWDEOLVK DQ LQGHSHQGHQW ULJKW WR UHPRYDO 7KXV WKH FDVHV
HQGRUVLQJWKHYLHZWKDWm6HFWLRQFVKRXOGQRWEH           FRQVLGHULQJ WKH SURSULHW\ RI WKLUGSDUW\ UHPRYDO KDYH GLVFXVVHG
                                                                         D DQG F DV WKH UHOHYDQW VWDWXWRU\ SURYLVLRQV
    )LUVW1DWjO%DQNRI                              1R       1R                             )LUVW1DWjO%DQNRI         
      3XODVNLY&XUU\HWDO                                                                                3XODVNLY&XUU\HWDO

  6HFWLRQD                                                    FODLPVEURXJKWE\WKHRULJLQDOSODLQWLIILVDVPXFKµMRLQHGjWR
                                                                         WKRVHFODLPVDVDQ\RWKHUW\SHRIFODLPl8QGHUWKLV
  6HFWLRQVWDWHVLQUHOHYDQWSDUW                                 LQWHUSUHWDWLRQWKHSODLQWLIIjVFODLPVDJDLQVWWKHGHIHQGDQWRU
                                                                         WKH GHIHQGDQWV DUH mMRLQHGl ZLWK WKH GHIHQGDQWVj
    D([FHSWDVRWKHUZLVHH[SUHVVO\SURYLGHGE\$FWRI                FRXQWHUFODLPVDJDLQVWWKHSODLQWLIIVZLWKWKLUGSDUW\FODLPV
  &RQJUHVV DQ\ FLYLO DFWLRQ EURXJKW LQ D 6WDWH FRXUW RI        DVVHUWHGE\WKHGHIHQGDQWVWKLUGSDUW\SODLQWLIIVDJDLQVWWKLUG
  ZKLFK WKH GLVWULFW FRXUWV RI WKH 8QLWHG 6WDWHV KDYH            SDUW\ GHIHQGDQWV ZLWK FURVVFODLPV DVVHUWHG E\ GHIHQGDQWV
  RULJLQDOMXULVGLFWLRQPD\EHUHPRYHGE\WKHGHIHQGDQWRU              DJDLQVWRQHDQRWKHUDQGVRRQ2WKHUFRXUWVKDYHUHDFKHGWKH
  WKHGHIHQGDQWVWRWKHGLVWULFWFRXUWRIWKH8QLWHG6WDWHV             RSSRVLWHFRQFOXVLRQDQGKHOGWKDWFRQO\DSSOLHVWR
  IRUWKHGLVWULFWDQGGLYLVLRQHPEUDFLQJWKHSODFHZKHUH                FODLPV MRLQHG E\ WKH RULJLQDO SODLQWLIIV LQ WKH XQGHUO\LQJ
  VXFKDFWLRQLVSHQGLQJ                                          DFWLRQ6HHHJ(ONKDUW&RRS(TXLW\([FKY'D\)
                                                                         6XSS   ' .DQ  m>5@HPRYDO XQGHU
$VWKHVWDWXWRU\ODQJXDJHPDNHVSODLQRQO\mWKHGHIHQGDQWRU            FLVDYDLODEOHRQO\ZKHQDUHPRYDEOHFODLPµLVMRLQHG
WKHGHIHQGDQWVlPD\UHPRYHXQGHUD7KHTXHVWLRQ               ZLWKj D QRQUHPRYDEOH FODLP  6WULFWO\ FRQVWUXHG WKLV
WKHQLVZKHWKHUDWKLUGSDUW\GHIHQGDQWLVDmGHIHQGDQWlDV             SURYLVLRQ RQO\ SHUPLWV UHPRYDO RI FODLPV MRLQHG LQ WKH
WKDW WHUP LV XVHG LQ  D  7KH PDMRULW\ YLHZ LV WKDW   SODLQWLIIjVFRPSODLQWl6KDYHUY$UN%HVW)UHLJKW6\V,QF
WKLUGSDUW\GHIHQGDQWVDUHQRWmGHIHQGDQWVlIRUSXUSRVHVRI               ) 6XSS   :' $UN  m>7@KH UHPRYDO
D6HHHJsRKQVWRQY6W3DXO)LUH	0DULQH,QV           VWDWXWH OLPLWV UHPRYDO    WR D VLWXDWLRQ ZKHUH WKHUH LV D
&R  ) 6XSS G   (' 0LFK  m>7@KH        MRLQGHU RI FODLPV E\ WKH SODLQWLII DQG GRHV QRW DXWKRUL]H
PDMRULW\YLHZ>LV@WKDWWKLUGSDUW\GHIHQGDQWVPD\QRWUHPRYH            UHPRYDOE\DWKLUGSDUW\GHIHQGDQWl
XQGHUDl*DOHQ0HG,QFY2ZHQV)6XSSG
:'9DVDPH6FKPLGWY$VVjQRI$SW                   :H EHOLHYH WKDW WKH QDUURZHU UHDGLQJ RI mMRLQHGl LV WKH
2ZQHUV  ) 6XSS   ' +DZ  m7KH              FRUUHFWRQH$OWKRXJKWKHXVHRIWKHWHUPmMRLQHGlGRHVQRW
PDMRULW\YLHZLVWKDWWKHGHWHUPLQDWLRQRIZKRLVDGHIHQGDQW            RQLWVRZQIRUHFORVHDQDOWHUQDWLYHLQWHUSUHWDWLRQWKH)HGHUDO
LVGHWHUPLQHGE\WKHRULJLQDOFRPSODLQWQRWVXEVHTXHQWWKLUG            5XOHVRI&LYLO3URFHGXUHFRQVLVWHQWO\XVHWKHWHUPWRUHIHUWR
RUIRXUWKSDUW\FRPSODLQWVl7KLVLVDOVRWKHSRVLWLRQWDNHQ          FODLPVRUSOHDGLQJVWKDWRQHSDUW\DGGVWRFODLPVRUSOHDGLQJV
E\ WZR RI WKH OHDGLQJ WUHDWLVHV RQ FLYLO SURFHGXUH  6HH    WKDWWKHSDUW\KDVDOUHDG\PDGH5XOHRIIHUVWKHFOHDUHVW
0RRUHjV )HGHUDO 3UDFWLFH  >@>E@>LY@ DW              H[DPSOHVWDWLQJWKDWDSDUW\ZKRDVVHUWVDFODLPmPD\MRLQ
0DWWKHZ%HQGHUGHGm>7@KLUGSDUW\GHIHQGDQWVDUH              DVPDQ\FODLPVDVWKHSDUW\KDVDJDLQVWDQRSSRVLQJ
QRW GHIHQGDQWV ZLWKLQ WKH PHDQLQJ RI WKH UHPRYDO VWDWXWH         SDUW\l5XOHEVWDWHVWKDWDSDUW\PD\mMRLQ>@lPXOWLSOH
   l & &KDUOHV $ODQ :ULJKW $UWKXU 5 0LOOHU 	       GHIHQVHVRUREMHFWLRQVLQWKHVDPHSOHDGLQJRUPRWLRQDQG
(GZDUG+&RRSHU)HGHUDO3UDFWLFHDQG3URFHGXUH                  5XOHJDOORZVDSDUW\PDNLQJDPRWLRQXQGHU5XOHWR
GHGm1RUFDQWKLUGSDUW\GHIHQGDQWVEURXJKWLQWR              mMRLQ ZLWK LW DQ\ RWKHU PRWLRQVl DOORZHG  5XOH D
WKHVWDWHDFWLRQE\WKHRULJLQDOGHIHQGDQWH[HUFLVHWKHULJKWRI         ZKLFKJRYHUQVVXESRHQDVVWDWHVWKDWDFRPPDQGWRSURGXFH
UHPRYDOWRWKHIHGHUDOFRXUWl6LPLODUO\WKH$PHULFDQ         HYLGHQFH PD\ EH mMRLQHGl ZLWK D FRPPDQG WR DSSHDU
/DZ ,QVWLWXWH FRQVLGHUV WKLV WKH EHWWHU YLHZ DV LW KDV         )LQDOO\5XOHEDOORZVSDUWLHVHLWKHUWRILOHDVLQJOHPRWLRQ
UHFRPPHQGHGWKDW&RQJUHVVDPHQGWRmPDNH>@FOHDU                  IRUMXGJPHQWDVDPDWWHURIODZRUIRUDQHZWULDORUWRmMRLQl
ZKDWWKHSUHVHQWODZPHUHO\LPSOLHVWKHULJKWRIUHPRYDO               WKHWZRDVVHSDUDWHPRWLRQVILOHGDWWKHVDPHWLPH7KHXVH
DSSOLHV RQO\ WR WKH DFWLRQ DV IUDPHG E\ WKH SOHDGLQJ WKDW      RImMRLQlLQWKHVHUXOHVPDNHVVHQVHRQO\LILWLVUHIHUULQJWR
    )LUVW1DWjO%DQNRI                           1R       1R                           )LUVW1DWjO%DQNRI       
      3XODVNLY&XUU\HWDO                                                                           3XODVNLY&XUU\HWDO

   $QXPEHURIFRXUWVKDYHFRQFOXGHGWKDWFGRHVQRW          FRPPHQFHV WKH DFWLRQ  &RXQWHUFODLPV FURVVFODLPV DQG
DXWKRUL]H WKLUGSDUW\ GHIHQGDQWV WR UHPRYH EHFDXVH               WKLUGSDUW\ FODLPV FDQQRW EH WKH EDVLV IRU UHPRYDOl XQGHU
m>U@HPRYDORQVXFKEDVLVLVWRRPXFKDNLQWRWKHWDLOZDJJLQJ          D  $/, )HGHUDO sXGLFLDO &RGH 5HYLVLRQ 3URMHFW
WKHGRJl(J/HZLV)GDWTXRWDWLRQRPLWWHG          FPWDW7HQW'UDIW1R$SULO
$VRQHGLVWULFWFRXUWREVHUYHGPDQ\\HDUVDJRm>$@OORZLQJ
UHPRYDOE\DWKLUGSDUW\GHIHQGDQWEULQJVLQWRDIHGHUDOFRXUW           :HKROGWKDWWKLUGSDUW\GHIHQGDQWVDUHQRWmGHIHQGDQWVl
DVXLWEHWZHHQWKHRULJLQDOSDUWLHVZKLFKKDVQRLQGHSHQGHQW          IRU SXUSRVHV RI  D  $V ZH KDYH RIWHQ QRWHG WKH
EDVLV IRU IHGHUDO MXULVGLFWLRQ  7KLV LV DQ XQZDUUDQWHG       UHPRYDO VWDWXWHV DUH WR EH QDUURZO\ FRQVWUXHG  6HH HJ
H[WHQVLRQ RI WKH IHGHUDO MXGLFLDO SRZHUl  %XUOLQJKDP         /RQJ)GDWm>%@HFDXVHWKH\LPSOLFDWHIHGHUDOLVP
8QGHUZRRG%DUURQ:ULJKW	:KLWHY/XFNHQEDFK66&R             FRQFHUQVUHPRYDOVWDWXWHVDUHWREHQDUURZO\FRQVWUXHGl
 ) 6XSS   6'1<   ,Q DGRSWLQJ WKLV    %ULHUO\Y$OXVXLVVH)OH[LEOH3DFNDJLQJ,QF)G
YLHZFRXUWVRIWHQHPSKDVL]HWKDWWKHUHPRYDOVWDWXWHVPXVW           WK&LUm,QLQWHUSUHWLQJWKHVWDWXWRU\ODQJXDJH
EH QDUURZO\ FRQVWUXHG DQG WKDW  F ZDV DGRSWHG LQ      ZH DUH PLQGIXO WKDW WKH VWDWXWHV FRQIHUULQJ UHPRYDO
RUGHU mWR UHVWULFW UDWKHU WKDQ H[SDQG WKH VFRSH RI UHPRYDO   MXULVGLFWLRQ DUH WR EH FRQVWUXHG VWULFWO\ EHFDXVH UHPRYDO
IURPWKHVWDWHFRXUWVl$QGUHZVY(OHF0RWRU6\V,QF       MXULVGLFWLRQHQFURDFKHVRQDVWDWHFRXUWjVMXULVGLFWLRQlFHUW
)G6'2KLRFLWLQJ$PHULFDQ)LUH	&DV           GHQLHG  86    ,Q FRQVWUXLQJ WKH IHGHUDO
&RY)LQQ866HHDOVRHJ)OHHW%DQN         UHPRYDOVWDWXWHVVWULFWO\ZHKDYHUHOLHGXSRQ6KDPURFN2LO
1+ Y (QJHOHLWHU  ) 6XSS   '1+       	*DV&RUSY6KHHWV86,QWKDWFDVHWKH
KROGLQJWKDW&RQJUHVVLQWHQGHGRQO\WKDWRULJLQDOGHIHQGDQWV         6XSUHPH&RXUWKHOGWKDWDVWDWHFRXUWSODLQWLIIDJDLQVWZKRP
EHDEOHWRUHPRYHSXUVXDQWWRF6HTXR\DK)HHG	             WKHGHIHQGDQWKDGILOHGDFRXQWHUFODLPFRXOGQRWUHPRYHWR
6XSSO\&RY5RELQVRQ)6XSS:'$UN              IHGHUDO FRXUW XQGHU WKH VWDWXWRU\ SUHGHFHVVRU WR  D
KROGLQJWKDWXQGHUDmVWULFWFRQVWUXFWLRQlRIF      7KH6KDPURFN2LO&RXUWQRWHGWKDWEHWZHHQDQG
WKLUGSDUW\GHIHQGDQWVPD\QRWUHPRYHWRIHGHUDOFRXUW              WKHUHPRYDOVWDWXWHJDYHWKHULJKWRIUHPRYDOWRmHLWKHUSDUW\l
                                                                      VHHLGDWEXWWKDW&RQJUHVVKDGDPHQGHGWKHSURYLVLRQ
   7KLVYLHZRIFLVFRQVLVWHQWZLWKRXUFRQFOXVLRQ           LQ  WR DOORZ UHPRYDO mRQO\ µE\ WKH GHIHQGDQW RU
WKDW WKLUGSDUW\ GHIHQGDQWV PD\ QRW UHPRYH SXUVXDQW WR         GHIHQGDQWVWKHUHLQjl,GDW  TXRWLQJD7KH
D7KHGLIIHUHQFHEHWZHHQWKHWZRSURYLVLRQVLQWKLV         &RXUW FRQFOXGHG WKDW &RQJUHVV LQWHQGHG mWR QDUURZ WKH
UHVSHFWLVWKDWFXQOLNHDGRHVQRWLQFOXGH         IHGHUDOMXULVGLFWLRQRQUHPRYDOlLQDPHQGLQJWKHVWDWXWHLQ
WKHSKUDVHmWKHGHIHQGDQWRUWKHGHIHQGDQWVlZKLFKZHKHOG           WKLVZD\LGDWDQGWKXVWKDWFRQJUHVVLRQDOLQWHQWERXQG
VXSUDPXVWEHFRQVWUXHGQDUURZO\7KXVLWLVSRVVLEOHWKDW           WKH&RXUWWRGHQ\SODLQWLIIVWKHULJKWWRUHPRYHHYHQLIWKH
FHYHQLIFRQVWUXHGQDUURZO\PD\SHUPLWWKLUGSDUW\         SODLQWLIIVZHUHVXEMHFWHGWRDFRXQWHUFODLPE\WKHGHIHQGDQW
GHIHQGDQWVWRUHPRYHWRIHGHUDOFRXUW7KHUHVWRIF         ,Q UHDFKLQJ WKLV FRQFOXVLRQ WKH &RXUW DOVR UXOHG WKDW WKH
PXVWDOVREHFRQVWUXHGQDUURZO\KRZHYHULQFOXGLQJWKHWHUP          VWDWHVjLPSRUWDQWLQWHUHVWLQWKHLQGHSHQGHQFHRIWKHLUFRXUWV
mMRLQHGl6RPHFRXUWVKDYHLQWHUSUHWHGmMRLQHGlDVXVHGLQ          UHTXLUHGmVWULFWFRQVWUXFWLRQlRIWKHUHPRYDOVWDWXWHV,GDW
FEURDGO\WRHQFRPSDVVDOOFODLPVEURXJKWWRJHWKHU           6HHDOVR$KHDUQY&KDUWHU7ZSRI%ORRPILHOG
LQWKHOLWLJDWLRQLQTXHVWLRQ6HHHJ)RUG0RWRU&UHGLW&R      )G   WK &LU  m'XH UHJDUG IRU VWDWH
Y $DURQ/LQFROQ 0HUFXU\ ,QF  ) 6XSS         JRYHUQPHQWVjULJKWIXOLQGHSHQGHQFHUHTXLUHVIHGHUDOFRXUWV
1',OOm$VHSDUDWHDQGLQGHSHQGHQWFODLPDJDLQVW           VFUXSXORXVO\ WR FRQILQH WKHLU RZQ MXULVGLFWLRQ WR SUHFLVH
DWKLUGSDUW\GHIHQGDQWSODFHGLQWRDVLQJOHODZVXLWZLWKWKH         VWDWXWRU\OLPLWVl
    )LUVW1DWjO%DQNRI                             1R       1R                            )LUVW1DWjO%DQNRI        
      3XODVNLY&XUU\HWDO                                                                              3XODVNLY&XUU\HWDO

   $OWKRXJK 6KDPURFN 2LO LV QRW GLVSRVLWLYH RI WKH SUHFLVH        6HFWLRQF
LVVXHEHIRUHXVLWGRHVGLFWDWHWKDWWKHSKUDVHmWKHGHIHQGDQW
RU WKH GHIHQGDQWVl DV XVHG LQ  D EH LQWHUSUHWHG         7KLUG3DUW\ 'HIHQGDQW +RUQH DOVR DVVHUWHG  86&
QDUURZO\ WR UHIHU WR GHIHQGDQWV LQ WKH WUDGLWLRQDO VHQVH RI   FDVDEDVLVIRUUHPRYDOLQWKHSUHVHQWFDVH7KDW
SDUWLHV DJDLQVW ZKRP WKH SODLQWLII DVVHUWV FODLPV  7KLV        SURYLVLRQVWDWHV
LQWHUSUHWDWLRQ RI mWKH GHIHQGDQW RU WKH GHIHQGDQWVl LV
EROVWHUHGE\WKHXVHRIPRUHH[SDQVLYHWHUPVLQRWKHUUHPRYDO             :KHQHYHUDVHSDUDWHDQGLQGHSHQGHQWFODLPRUFDXVHRI
VWDWXWHV7LWOHJUDQWVUHPRYDOSRZHULQEDQNUXSWF\FDVHV              DFWLRQZLWKLQWKHMXULVGLFWLRQFRQIHUUHGE\VHFWLRQ
WRDQ\mSDUW\lVHH86&DDEURDGHUJUDQWRI               RIWKLVWLWOHLVMRLQHGZLWKRQHRUPRUHRWKHUZLVHQRQ
SRZHU WKDW FRXUWV KDYH LQWHUSUHWHG WR H[WHQG WR WKLUGSDUW\       UHPRYDEOHFODLPVRUFDXVHVRIDFWLRQWKHHQWLUHFDVHPD\
GHIHQGDQWV6HH7KRPDV%%HQQHWW5HPRYDO5HPDQGDQG                  EH UHPRYHG DQG WKH GLVWULFW FRXUW PD\ GHWHUPLQH DOO
$EVWHQWLRQ5HODWHGWR%DQNUXSWFLHV<HW$QRWKHU/LWLJDWLRQ               LVVXHV WKHUHLQ RU LQ LWV GLVFUHWLRQ PD\ UHPDQG DOO
4XDJPLUH&XPE/5HY                     PDWWHUVLQZKLFK6WDWHODZSUHGRPLQDWHV
VXPPDUL]LQJ EDQNUXSWF\ FDVHV DOORZLQJ WKLUGSDUW\
UHPRYDO7LWOHDOVRDOORZVUHPRYDOE\DQ\mIRUHLJQVWDWHl          $VRQHGLVWULFWFRXUWLQWKLVFLUFXLWQRWHG\HDUVDJRmWKHUHLV
DJDLQVW ZKLFK DQ DFWLRQ LV EURXJKW LQ VWDWH FRXUW VHH      DQLUUHFRQFLODEOHFRQIOLFW>DPRQJWKHDXWKRULWLHV@UHJDUGLQJ
86& G DQG FRXUWV KDYH LQWHUSUHWHG WKDW JUDQW WR       ZKHWKHU WKLUGSDUW\ DFWLRQV DQG FURVVFODLPV FDQ EH
LQFOXGH IRUHLJQ VWDWHV WKDW DUH WKLUGSDUW\ GHIHQGDQWV  6HH    FRQVLGHUHG XQGHU  F DV IXOILOOLQJ WKH µVHSDUDWH DQG
sRQDWKDQ5HP\1DVK3HQGHQW3DUW\sXULVGLFWLRQ8QGHUWKH                LQGHSHQGHQW FODLPj UHTXLUHPHQW RI WKDW VHFWLRQl :KLWH Y
)RUHLJQ6RYHUHLJQ,PPXQLWLHV$FW%8,QWjO/s            +XJKHV)6XSS:'7HQQ2IWKH
	 Q  VXPPDUL]LQJ FDVHV  %\ FRQWUDVW                FLUFXLWVWRKDYHFRQVLGHUHGWKLVTXHVWLRQWKH(LJKWK&LUFXLW
DjVJUDQWRIUHPRYDOSRZHULVPXFKPRUHOLPLWHG                KDVKHOGWKDWFGRHVQRWSHUPLWWKLUGSDUW\GHIHQGDQWV
LQVWLOOLQJ D ULJKW RI UHPRYDO RQO\ LQ WKH GHIHQGDQW RU WKH    WRUHPRYHVHH/HZLVY:LQGVRU'RRU&R)G
GHIHQGDQWV6HHHJsRKQVWRQ)6XSSDWQRWLQJ           WK &LU  m:H GR QRW    EHOLHYH  F ZDV
WKDW WKH WHUPV mGHIHQGDQWl DQG mWKLUGSDUW\ GHIHQGDQWl            LQWHQGHG WR HIIHFW UHPRYDO RI D VXLW QRW RWKHUZLVH ZLWKLQ
mW\SLFDOO\ DUH XQGHUVWRRG DV UHIHUULQJ WR GLVWLQFW SDUWLHVl    IHGHUDO MXULVGLFWLRQ EHFDXVH RI WKH LQWURGXFWLRQ RI D WKLUG
.QLJKW Y +HOOHQLF /LQHV /WG  ) 6XSS            SDUW\FODLPlTXRWDWLRQRPLWWHGWKH6HYHQWK &LUFXLWKDV
('1<FRQFOXGLQJWKDWWKLUGSDUW\GHIHQGDQWLVQRW           KHOGmWKDWLQWKHEURDGUXQRIWKLUGSDUW\FDVHVWKHWKLUG
DmGHIHQGDQWlDVWKDWWHUPLVXVHGLQD)ULGGOHY            SDUW\GHIHQGDQWFDQQRWUHPRYHXQGHUVHFWLRQFlEXWKDV
+DUGHHjV)RRG6\V,QF)6XSS:'$UN              QRW DGRSWHG mD XQLYHUVDO DQG DEVROXWH UXOH WR WKDW HIIHFWl
m:HKROGWKDWDOLPLWVWKHULJKWWRUHPRYHWR              7KRPDVY6KHOWRQ)GWK&LUDQGWKH
GHIHQGDQWVDQGGRHVQRWJLYHDULJKWRIUHPRYDOWRWKLUGSDUW\          )LIWK&LUFXLWKDVKHOGWKDWWKLUGSDUW\GHIHQGDQWVPD\UHPRYH
GHIHQGDQWVl7KXVFRQVWUXLQJWKHUHPRYDOVWDWXWHQDUURZO\          XQGHUFZKHQHYHUWKHUHTXLUHPHQWVRIWKDWSURYLVLRQ
ZH FRQFOXGH WKDW WKLUGSDUW\ GHIHQGDQWV GR QRW KDYH D           DUH RWKHUZLVH VDWLVILHG &DUO +HFN (QJLQHHUV ,QF Y
VWDWXWRU\ULJKWRIUHPRYDOSXUVXDQWWRD                       /DIRXUFKH3DULVK3ROLFHsXU\)GWK&LU
                                                                         DGRSWLQJ DV mWKH PRUH UDWLRQDO YLHZl WKH YLHZ
                                                                        mSHUPLWW>LQJ@ UHPRYDO RQ WKH EDVLV RI D WKLUG SDUW\ FODLP
                                                                        ZKHUHDVHSDUDWHDQGLQGHSHQGHQWFRQWURYHUV\LVVWDWHGl
