       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


*86 m6.,3l '$/(85( s5         ;
&+5,67,1( /($.( %(/,1'$          
0255,621 3$8/ ',;21              
                                      1RV
.8%$/$ 7,1$ 2:(1 s(66(              
&$5/ (0(57 65 s$0(6 %          !   
                                  
$'$06 s5 *$,/ (               
$1'(5621DQGWKH3URSRVHG 
3ODLQWLII&ODVV                  
          3ODLQWLIIV$SSHOODQWV 
               &URVV$SSHOOHHV 
                                  
                                  
            Y                    
                                  
&20021:($/7+ 2)                   
.(178&.<HWDO       
         'HIHQGDQWV$SSHOOHHV 
                                  
                                  
s())(5621 &2817< ),6&$/           
&2857  0&,              
7(/(&20081,&$7,216                
&25325$7,21 :25/'&20             
7(&+12/2*,(6 ,1&                
                                  
 *5$<621 &2817< 
),6&$/ &2857 %8//,77             
&2817< ),6&$/ &2857              
/$58( ),6&$/ &2857 ),6&$/ 
                                  

                             
       'DOHXUHHWDOY                 1RV   1RV                         'DOHXUHHWDOY       
        &RPPRQZHDOWKRI                                   &RPPRQZHDOWKRI
        .HQWXFN\HWDO                                                                                    .HQWXFN\HWDO


    &2857 2) )5$1./,1                                          WKHGLVWULFWFRXUWIDLOVDGHTXDWHO\WRH[SODLQLWVUHDVRQLQJl
                                                               *HQHUDO$FTXLVLWLRQ)GDW+HUHWKHGLVWULFWMXGJH
    &2817< .(178&.<                                           GLG QRW HYHQ VWDWH WKDW WKHUH ZDV QR MXVW UHDVRQ IRU GHOD\
    2/'+$0 &2817< ),6&$/                                       PXFKOHVVH[SODLQKLVUHDVRQLQJ3ODLQWLIIVjPRWLRQLVHTXDOO\
                                      
    &2857  ,19,6,21                                 VLOHQW
    7(/(&20 ,1&                     
     *$7(:$<                                            )RUWKHUHDVRQVVWDWHGLQWKLVRSLQLRQZHGLVPLVVWKHDSSHDO
                                                               DQGFURVVDSSHDO
    7(&+12/2*,(6 ,1&                
     6(&85,7<               
    7(/(&20 &25325$7,21               
                                      
                            
           'HIHQGDQWV$SSHOOHHV      
                &URVV$SSHOODQWV     
                                     1

         $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH
      1RnsRKQ*+H\EXUQ,,'LVWULFWsXGJH
                   $UJXHG$XJXVW
             'HFLGHGDQG)LOHG2FWREHU
%HIRUH.(,7+.(11('<DQG%$7&+(/'(5&LUFXLW
                     sXGJHV
                     BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  0LFKDHO % 5RQH\ %$57 $'$06 	
$662&,$7(6/RXLVYLOOH.HQWXFN\IRU3ODLQWLIIV&.HQW
+DWILHOG 0,''/(721 5(87/,1*(5 /RXLVYLOOH
.HQWXFN\ 6WHSKDQLH $ sR\FH 3$7721 %2**6 //3
:DVKLQJWRQ'&IRU'HIHQGDQWV21%5,())7KRPDV
&RQZD\ :+,7( &21:$< 	 $'$06 /RXLVYLOOH
     'DOHXUHHWDOY                      1RV            1RV                       'DOHXUHHWDOY      
      &RPPRQZHDOWKRI                                               &RPPRQZHDOWKRI
      .HQWXFN\HWDO                                                                                                .HQWXFN\HWDO

KHOGWKDWm>W@KHUXOLQJRQGDPDJHVZLWKQRUXOLQJRQOLDELOLW\            .HQWXFN\%DUW$GDPV/RXLVYLOOH.HQWXFN\IRU3ODLQWLIIV
ZDV REYLRXVO\ QRW D µILQDOj RUGHU FRQIHUULQJ DSSHOODWH              & .HQW +DWILHOG +HQU\ 6 $OIRUG 0,''/(721
MXULVGLFWLRQ RQ WKLV FRXUWl  ,G   )RU WKH VDNH RI DSSHOODWH   5(87/,1*(5/RXLVYLOOH.HQWXFN\6WHSKDQLH$sR\FH
MXULVGLFWLRQ FODLPV WKDW mFRQFHUQ D VLQJOH µDJJUHJDWH RI            3$7721 %2**6 //3 :DVKLQJWRQ '& *OHQQ %
RSHUDWLYH IDFWVj    FRQVWLWXWH D VLQJOH FODLPl UDWKHU WKDQ     0DQLVKLQ3$7721%2**6//30F/HDQ9LUJLQLD*DU\
mPXOWLSOHFODLPVl,GDW                                          ( 6PLWK *5$+$0 %5,*+7 	 60,7+ 'DOODV 7H[DV
                                                                            0LFKDHO 5 0RURZ 67(3+(1621 '$/< 0252: 	
  :H IXUWKHU KHOG WKDW D mGLVWULFW FRXUW FHUWLI\LQJ DQ RUGHU       .851,.,QGLDQDSROLV,QGLDQD6HDQ(+ROJXLQ2)),&(
XQGHU5XOHEPXVWFOHDUO\H[SODLQZK\LWKDVFRQFOXGHG                  2)7+(3,0$&2817<$77251(<7XFVRQ$UL]RQD
WKDWLPPHGLDWHUHYLHZRIWKHFKDOOHQJHGUXOLQJLVGHVLUDEOHl               'HQLVH*DUULVRQ0F(OYHLQ2)),&(2)7+($77251(<
,GDWHPSKDVLVDGGHG                                               *(1(5$/ 6W /RXLV 0LVVRXUL (UZLQ 2 6ZLW]HU ,,, 6W
                                                                            /RXLV 0LVVRXUL 'DYLG :KDOLQ 5REHUW 7 :DWVRQ
  7KDW VDPH \HDU LQ 3HQGOHWRQ 3ODFH $SDUWPHQWV ZH                  /$1'580	6+286(/RXLVYLOOH.HQWXFN\6X]DQQH'
FRQFOXGHGVXD VSRQWH WKDW ZH ODFNHG DSSHOODWH MXULVGLFWLRQ            &RUGHU\ $66,67$17 s())(5621 &2817<
RYHUFODLPVZKLFKZHUHQRWGLVWLQFWEXWUDWKHULQWKHZRUGV               $77251(</RXLVYLOOH.HQWXFN\5LFKDUG'3RURWVN\sU
RIWKHGLVWULFWFRXUWmµLQH[WULFDEO\LQWHUWZLQHGjl3HQGOHWRQ             ',16025(	6+2+/&LQFLQQDWL2KLRsRKQ(6HOHQW
3ODFH$SDUWPHQWV)GDWYDFDWLQJDQGGLVPLVVLQJ                ',16025(	6+2+//RXLVYLOOH.HQWXFN\:LOOLDP+
DSSHDOIRUODFNRIDSSHOODWHMXULVGLFWLRQXQGHU5XOHE                +ROODQGHU 0LFKHOOH ' :\ULFN :<$77 7$55$17 	
                                                                            &20%6/RXLVYLOOH.HQWXFN\IRU'HIHQGDQWV
  :H DUH ERXQG WR GLVPLVV WKH SUHVHQW DSSHDO E\ *HQHUDO
$FTXLVLWLRQjV GHILQLWLRQ RI mPXOWLSOH FODLPVl DV ZHOO DV LWV                             BBBBBBBBBBBBBBBBB
HPSKDVLV RQ D mFOHDU>@ H[SOD>QDWLRQ@l RI WKH QHHG IRU DQ
LQWHUORFXWRU\DSSHDO7KHMXGJHjVRUGHUVRQWKHPRWLRQVWR                                          23,1,21
GLVPLVV LQ WKLV FDVH ZHUH QRW ILQDO RUGHUV EHFDXVH WKH                                  BBBBBBBBBBBBBBBBB
SODLQWLIIjV YDULRXV DUJXPHQWV DUH QRW VHSDUDEOH FODLPV EXW
UDWKHUGLIIHUHQWWKHRULHVRIGDPDJHVIRUWKHVDPHXQGHUO\LQJ                   .(11('<&LUFXLWsXGJH3ODLQWLIIVDFODVVRIUHODWLYHV
LQMXU\$OOSODLQWLIIVjFODLPVKDYHWKHVDPHRSHUDWLYHIDFWV              RISULVRQHUVLQFDUFHUDWHGLQ.HQWXFN\FRUUHFWLRQDOIDFLOLWLHV
H[FHVVLYHFKDUJHVIRUFROOHFWFDOOVIURPSULVRQHUVWRSHUVRQV               VXHG WKH &RPPRQZHDOWK RI .HQWXFN\ WKH .HQWXFN\
RXWVLGHWKHSULVRQ%\LWVRZQWHUPV5XOH%DSSOLHVRQO\              'HSDUWPHQW RI &RUUHFWLRQV WKH VWDWH RI 0LVVRXUL VHYHUDO
WR mPXOWLSOH FODLPVl XQGHU *HQHUDO $FTXLVLWLRQ ZH KDYH             .HQWXFN\0LVVRXUL$UL]RQDDQG,QGLDQDPXQLFLSDOHQWLWLHV
RQO\ RQH FODLPKHUHDVWRHDFKGHIHQGDQWDQGWKXVD5XOH                 DQG YDULRXV SULYDWH WHOHSKRQH SURYLGHUV DOOHJLQJ DQWLWUXVW
%FHUWLILFDWHRIDSSHDODELOLW\LVLQDSSURSULDWH                      YLRODWLRQV DQG H[FHVVLYH UDWHV LQ FRQQHFWLRQ ZLWK WKH
                                                                            SURYLVLRQ RI WHOHSKRQH VHUYLFHV WR LQPDWHV  7KH SODLQWLIIV
  :KLOH WKH GLVPLVVDOV RI VRPH GHIHQGDQWV IRU ODFN RI               DOOHJHG 6KHUPDQ $FW 5RELQVRQ3DWPDQ $FW DQG (TXDO
SHUVRQDOMXULVGLFWLRQDUHILQDOWKHGLVWULFWMXGJHSDWHQWO\IDLOHG         3URWHFWLRQYLRODWLRQV
FOHDUO\WR H[SODLQWKHQHHGIRUDQLQWHUORFXWRU\DSSHDOKH
PHUHO\GHFODUHGWKDWKLVRUGHUVZHUHVXEMHFWWRVXFKDQDSSHDO              $OOGHIHQGDQWVPRYHGWRGLVPLVVIRUVXPPDU\MXGJPHQW
m$ILQGLQJRIQRMXVWUHDVRQIRUGHOD\LVVXEMHFWWRUHYHUVDOLI            1RQ.HQWXFN\ JRYHUQPHQWDO GHIHQGDQWV PRYHG WR GLVPLVV
      'DOHXUHHWDOY                  1RV          1RV                        'DOHXUHHWDOY          
       &RPPRQZHDOWKRI                                          &RPPRQZHDOWKRI
       .HQWXFN\HWDO                                                                                           .HQWXFN\HWDO

IRU ZDQW RI SHUVRQDO MXULVGLFWLRQ WKH MXGJH JUDQWHG WKHVH       RQHRUPRUHEXWIHZHUWKDQDOORIWKHFODLPVRUSDUWLHV
PRWLRQV  7KH &RPPRQZHDOWK RI .HQWXFN\ DQG LWV                    RQO\XSRQDQH[SUHVVGHWHUPLQDWLRQWKDWWKHUHLVQRMXVW
'HSDUWPHQW RI &RUUHFWLRQV PRYHG WR GLVPLVV EDVHG RQ WKH          UHDVRQIRUGHOD\DQGXSRQDQH[SUHVVGLUHFWLRQIRUWKH
(OHYHQWK$PHQGPHQWWKHMXGJHJUDQWHGWKHVHPRWLRQVZLWK                 HQWU\RIMXGJPHQW,QWKHDEVHQFHRIVXFKGHWHUPLQDWLRQ
SUHMXGLFH  $OO RI WKH GHIHQGDQWV PRYHG WR GLVPLVV WKH          DQG GLUHFWLRQ DQ\ RUGHU RU RWKHU IRUP RI GHFLVLRQ
SODLQWLIIVj 5RELQVRQ3DWPDQ $FW FODLP RQ WKH JURXQG WKDW          KRZHYHUGHVLJQDWHGZKLFKDGMXGLFDWHVIHZHUWKDQDOOWKH
WHOHSKRQHVHUYLFHVZHUHQRWmJRRGVlSXUVXDQWWRWKH$FWWKH             FODLPVRUWKHULJKWVDQGOLDELOLWLHVRIIHZHUWKDQDOOWKH
MXGJHJUDQWHGWKHVHPRWLRQVZLWKSUHMXGLFH                            SDUWLHV VKDOO QRW WHUPLQDWH WKH DFWLRQ DV WR DQ\ RI WKH
                                                                         FODLPVRUSDUWLHVDQGWKHRUGHURURWKHUIRUPRIGHFLVLRQ
  7KH .HQWXFN\ ORFDO JRYHUQPHQW GHIHQGDQWV PRYHG IRU               LV VXEMHFW WR UHYLVLRQ DW DQ\ WLPH EHIRUH WKH HQWU\ RI
VXPPDU\MXGJPHQWDVWRWKHSODLQWLIIVj6KHUPDQ$FWFODLPV                MXGJPHQWDGMXGLFDWLQJDOOWKHFODLPVDQGWKHULJKWVDQG
XQGHU VWDWH DFWLRQ LPPXQLW\ WKH MXGJH GLG QRW JUDQW WKLV       OLDELOLWLHVRIDOOWKHSDUWLHV
PRWLRQ7KHUHPDLQLQJGHIHQGDQWVPRYHGWRGLVPLVVXQGHU
5XOHEWKH6KHUPDQ$FWDQG(TXDO3URWHFWLRQFODLPV             7KH FRXUWjV PHPRUDQGXP RUGHU UHFLWHV RQO\  m,7 ,6
7KH MXGJH DSSOLHG WKH ILOHGUDWH GRFWULQH DQG JUDQWHG WKH      +(5(%<25'(5('$1'$'s8'*('7+$7WKH2UGHUV
PRWLRQZLWKUHVSHFWWRWKH6KHUPDQ$FWFODLPVIRUPRQHWDU\             DGGUHVVLQJWKH'HIHQGDQWVj0RWLRQVWR'LVPLVVEHDQGDUH
UHOLHIRQO\7KHMXGJHJUDQWHGWKH PRWLRQWRGLVPLVVWKH           KHUHE\ILQDODQGDSSHDODEOHls$DW
(TXDO3URWHFWLRQFODLPRQWKHJURXQGWKDWWKHUHFLSLHQWVRI
LQPDWH FDOOV ZHUH QRW VLPLODUO\ VLWXDWHG WR RWKHU FDOO           :KLOHDOOSDUWLHVVHHNWRFRQIHUDSSHOODWHMXULVGLFWLRQZH
UHFLSLHQWV  7KXV WKH FODLP IRU LQMXQFWLYH UHOLHI XQGHU WKH   PXVW GLVPLVV WKH DSSHDO DQG FURVV DSSHDO EHFDXVH ZH ODFN
6KHUPDQ $FW UHPDLQV SHQGLQJ ZLWK WKH 'LVWULFW &RXUW            DSSHOODWHMXULVGLFWLRQ7KHGLVWULFWFRXUWKDVQRWHQWHUHGILQDO
3ODLQWLIIV DSSHDO WKH GLVPLVVDOV RI WKH QRQ.HQWXFN\             MXGJPHQWRQPRVWFODLPVDQGFRXOGQRWEHFDXVHLWKDGQRW
JRYHUQPHQWDOGHIHQGDQWVWKHLU(TXDO3URWHFWLRQFODLPWKHLU          UXOHGRQWKHLQMXQFWLYHDVSHFWVRIWKH6KHUPDQ$FWFODLPV,Q
FODLPIRUPRQHWDU\UHOLHIXQGHUWKH6KHUPDQ$FWDQGWKHLU             DGGLWLRQLWVFHUWLILFDWLRQRIDSSHDODELOLW\XQGHU5XOHEGLG
FODLP IRU UHOLHI XQGHU WKH 5RELQVRQ3DWPDQ $FW  7KH           QRW FRQWDLQ WKH ILQGLQJV UHTXLUHG XQGHU 6L[WK &LUFXLW
GHIHQGDQWV FURVVDSSHDO WKH MXGJHjV IDLOXUH WR GLVPLVV WKH      SUHFHGHQW7KHGLVWULFWFRXUWPHUHO\GHFODUHGLWVRUGHUVILQDO
6KHUPDQ $FW FODLPV IRU LQMXQFWLYH UHOLHI DQG IDLOXUH WR       DQG DSSHDODEOH EXW XQGHU WZR RI RXU FDVHV *HQHUDO
GLVPLVVEDVHGRQJRYHUQPHQWDOLPPXQLW\                                $FTXLVLWLRQ ,QF Y *HQ&RUS ,QF  )G  WK &LU
                                                                       DQGsXVWLFHY3HQGOHWRQ3ODFH$SDUWPHQWV)G
  3ODLQWLII DW WKH 'LVWULFW &RXUWjV VXJJHVWLRQ PRYHG WR        WK  VXFK DQ RUGHU PXVW EDODQFH WKH YDULRXV
FHUWLI\ WKH RUGHUV RI GLVPLVVDO DV mILQDO DQG DSSHDODEOHl     LQWHUHVWVLQJUDQWLQJDFHUWLILFDWHRIDSSHDODELOLW\
$OWKRXJKWKHPRWLRQGRHVQRWUHIHUWRDQ\UXOHSUHVXPDEO\LW
UHOLHVRQ5XOH%ZKLFKSURYLGHV                                    ,Q *HQHUDO $FTXLVLWLRQ ZH IXOILOOHG mRXU LQGHSHQGHQW
                                                                       REOLJDWLRQWRVFUXWLQL]HWKHEDVLVIRUDSSHOODWHMXULVGLFWLRQlLQ
    :KHQPRUHWKDQRQHFODLPIRUUHOLHILVSUHVHQWHGLQDQ             VSLWHRIWKHIDFWWKDWmERWKSDUWLHV>VRXJKW@WRFRQIHUDSSHOODWH
    DFWLRQZKHWKHUDVDFODLPFRXQWHUFODLPFURVVFODLPRU          MXULVGLFWLRQXSRQWKLVFRXUWl)GDW,QWKDWFDVH
    WKLUGSDUW\FODLPRUZKHQPXOWLSOHSDUWLHVDUHLQYROYHG          WKHGLVWULFWMXGJHKDGUXOHGRQWKHGDPDJHVHOHPHQWRIWKH
    WKHFRXUWPD\GLUHFWWKHHQWU\RIDILQDOMXGJPHQWDVWR           SODLQWLIIVjFDVHEXWQRWWKHOLDELOLW\HOHPHQW,GDW:H
