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

      ,QV&RY9XOFDQ'HY                                                 (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                                                                                          )LOH 1DPH DS

QRW DFWLRQDEOH DV D PDWWHU RI ODZ SXUVXDQW WR D WRUWLRXV
LQWHUIHUHQFHZLWKDEXVLQHVVUHODWLRQVKLSFODLPRURWKHUZLVH         81,7('67$7(6&28572)$33($/6
  )RUWKLVUHDVRQZHDIILUPWKHGLVWULFWFRXUWjVMXGJPHQWLQ                            )257+(6,;7+&,5&8,7
IDYRU RI :DXVDX RQ 9XOFDQjV WRUWLRXV LQWHUIHUHQFH ZLWK D                           BBBBBBBBBBBBBBBBB
EXVLQHVVUHODWLRQVKLSFODLPDOEHLWIRUUHDVRQVRWKHUWKDQWKRVH
DUWLFXODWHGE\WKHGLVWULFWFRXUW
,9&RQFOXVLRQ                                                        :$86$8 81'(5:5,7(56               ;
                                                                       ,1685$1&( &203$1<                 
  )RUWKHUHDVRQVVWDWHGDERYHWKHMXGJPHQWRIWKHGLVWULFW                     3ODLQWLII$SSHOOHH      
FRXUW LV $)),50(' DV WR DOO FODLPV DQG FRXQWHUFODLPV                                                1R
DVVHUWHGLQWKLVDFWLRQ                                                                                  
                                                                                  Y                       !
                                                                                                          
                                                                                                          
                                                                      98/&$1 '(9(/230(17 ,1& 
                                                                                'HIHQGDQW$SSHOODQW 
                                                                                                          
                                                                                                         1
                                                                             $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                            IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
                                                                      1Rn/DZUHQFH3=DWNRII&KLHI'LVWULFWsXGJH
                                                                                         $UJXHG'HFHPEHU
                                                                                    'HFLGHGDQG)LOHG0DUFK
                                                                       %HIRUH0$57,1&KLHI&LUFXLWsXGJH'$8*+75(<
                                                                             &LUFXLWsXGJH2j0$//(<'LVWULFWsXGJH




                                                                          
                                                                           7KH +RQRUDEOH .DWKOHHQ 0 2j0DOOH\ 8QLWHG 6WDWHV 'LVWULFW sXGJH
                                                                      IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ



                                                                                                          
     :DXVDX8QGHUZULWHUV                            1R       1R                        :DXVDX8QGHUZULWHUV         
      ,QV&RY9XOFDQ'HY                                                                            ,QV&RY9XOFDQ'HY

                     BBBBBBBBBBBBBBBBB                                 ZLWKRXWMXVWLILFDWLRQWKHUHLVQRIDFWXDOSUHGLFDWHSURYLGHGIRU
                                                                       WKRVHDVVHUWLRQV,QGHHGWKHXQGLVSXWHGIDFWVRQWKHUHFRUG
                           &2816(/                                     EHIRUH XV FRPSHO WKH RSSRVLWH FRQFOXVLRQ  7KH )DFLOLW\
                                                                       SURYLGHV VSHFLILF SURFHGXUHV IRU FDUULHUV WR IROORZ ZKHQ
$5*8('0DUN.:DVYDU\%(&.(5	$662&,$7(6                         FDQFHOOLQJDSROLF\
5RFKHVWHU 0LFKLJDQ IRU $SSHOODQW  sDPHV ( 'H/LQH
.(55 5866(// 	 :(%(5 'HWURLW 0LFKLJDQ IRU                      7KH 6HUYLFLQJ &DUULHU PD\ UHTXHVW FDQFHOODWLRQ DW DQ\
$SSHOOHH  21 %5,()  0DUN . :DVYDU\ %(&.(5 	                 WLPH IRU QRQSD\PHQW RI SUHPLXPV  $SSURYDO RI WKH
$662&,$7(65RFKHVWHU0LFKLJDQ&DUO*%HFNHU&$5/                    )DFLOLW\LVQRWUHTXLUHGIRUVXFKFDQFHOODWLRQ
* %(&.(5 	 $662&,$7(6 5RFKHVWHU 0LFKLJDQ IRU
$SSHOODQWsDPHV('H/LQH.(555866(//	:(%(5                      ,IWKH6HUYLFLQJ&DUULHUGHWHUPLQHVWKDWRQHRUPRUHRI
'HWURLW0LFKLJDQIRU$SSHOOHH                                         WKHIROORZLQJVLWXDWLRQVH[LVWVLWPD\UHTXHVWSHUPLVVLRQ
                                                                         IURPWKH)DFLOLW\WRLVVXHDFDQFHOODWLRQQRWLFH
                     BBBBBBBBBBBBBBBBB
                                                                              7KH HPSOR\HU LV QRW HQWLWOHG WR JRRG IDLWK
                         23,1,21                                                LQVXUDQFH
                     BBBBBBBBBBBBBBBBB                                        7KH HPSOR\HU KDV IDLOHG WR FRPSO\ ZLWK
                                                                                UHDVRQDEOHVDIHW\UHTXLUHPHQWV
  .$7+/((102j0$//(<'LVWULFWsXGJH7KLVLVD                            7KH HPSOR\HU KDV YLRODWHG RQH RU PRUH RI WKH
GLYHUVLW\ FRQWUDFW GLVSXWH LQ ZKLFK WKH 3ODLQWLII :DXVDX                WHUPV DQG FRQGLWLRQV XQGHU ZKLFK WKH FRYHUDJH
8QGHUZULWHUV,QVXUDQFH&RPSDQ\m:DXVDXlFODLPV9XOFDQ                        ZDVLVVXHG
'HYHORSPHQW ,QF m9XOFDQl EUHDFKHG LWV FRQWUDFW ZLWK
:DXVDXE\IDLOLQJWRWHQGHUFHUWDLQSUHPLXPSD\PHQWVIRU               )DFLOLW\ ,QIRUPDWLRQ 	 3URFHGXUHV +DQGERRN 6HFWLRQ ,,
ZRUNHUVj FRPSHQVDWLRQ LQVXUDQFH FRYHUDJH  9XOFDQ                 3URFHGXUHVS3,QWKLVFDVHWKHOHWWHUWKDWIRUPVWKHEDVLV
FRXQWHUFODLPHGDOOHJLQJWKDW:DXVDXZDVWKHEUHDFKLQJSDUW\           RI9XOFDQjVFRXQWHUFODLPWKH6HSWHPEHUOHWWHUIURP
DQG WKDW WKH LQVXUHU WRUWLRXVO\ LQWHUIHUHG ZLWK LWV EXVLQHVV   :DXVDX WR WKH )DFLOLW\ PLPLFV WKH ODQJXDJH RI LWHP RQH
UHODWLRQV7KHGLVWULFWFRXUWJUDQWHGVXPPDU\MXGJPHQWWR             m:HKDYHEHHQDWWHPSWLQJWRREWDLQSD\PHQWIRUWKHDERYH
:DXVDX RQ LWV EUHDFK RI FRQWUDFW FODLP DQG GLVPLVVHG           UHIHUHQFHGSROLF\3OHDVHDGYLVHWKHFXUUHQWFDUULHUWKDWWKH
9XOFDQjVWRUWDOOHJDWLRQRQVWDWXWHRIOLPLWDWLRQVJURXQGV           LQVXUHGKDVDQRXWVWDQGLQJEDODQFHDQGLVQRORQJHULQJRRG
                                                                       IDLWKHQWLWOHGWRLQVXUDQFHl6HSWOHWWHU:DXVDX
   %HIRUHWKLV&RXUW9XOFDQGRHVQRWKLJKOLJKWDQ\JHQXLQH            VLPSO\LQIRUPHGWKH)DFLOLW\WKDWJURXQGVIRUFDQFHOODWLRQRI
LVVXHVRIPDWHULDOIDFWEXWUDWKHUDUJXHVWKDWWKHPDMRULW\RI      WKH SROLF\ H[LVWHG DQG UHTXHVWHG WKDW QRWLFH RI VXFK
:DXVDXjV FODLPV ZHUH EDUUHG E\ WKH VWDWXWH RI OLPLWDWLRQV      FDQFHOODWLRQEHSURYLGHGWR9XOFDQ*LYHQRXUFRQFOXVLRQV
ZKHQDVVHUWHGDQGWKDW:DXVDXZDV WKHILUVWWREUHDFKWKH             WKDW9XOFDQEUHDFKHGLWVFRQWUDFWRILQVXUDQFHZLWK:DXVDX
SDUWLHVj FRQWUDFWV E\ IDLOLQJ WR FKDUJH DSSURSULDWH DQG         E\IDLOLQJWRSD\SUHPLXPVRZHGLWLVFOHDUPRUHRYHUWKDW
UHDVRQDEOHSUHPLXPVIRUWKHLQVXUDQFHSURYLGHGWKHUHXQGHU             :DXVDX ZDV IXOO\ MXVWLILHG LQ VHHNLQJ FDQFHOODWLRQ RI WKH
9XOFDQ DOVR DUJXHV WKDW SXUVXDQW WR 0LFK &RPS /DZV          9XOFDQ SROLF\  %HFDXVH :DXVDX ZDV DXWKRUL]HG WR VHHN
LWVFRXQWHUFODLPIRUWRUWLRXVLQWHUIHUHQFHZLWKD          FDQFHOODWLRQRIWKHSROLF\DQGGLGVRLQWKHPDQQHUGLFWDWHGE\
EXVLQHVV UHODWLRQVKLS LV QRW EDUUHG E\ WKH VWDWXWH RI          WKH)DFLOLW\jVRZQSURFHGXUHVLWVDFWLRQVDUHMXVWLILHGDQGDUH
OLPLWDWLRQV
    :DXVDX8QGHUZULWHUV                             1R       1R                        :DXVDX8QGHUZULWHUV           
      ,QV&RY9XOFDQ'HY                                                                             ,QV&RY9XOFDQ'HY

&ODUN Y :HVW 6KRUH +RVSLWDO 1R   :/                :HILQGWKDWWKHGLVWULFWFRXUWFRUUHFWO\JUDQWHGVXPPDU\
  )HG $SS[   WK &LU sXO\         MXGJPHQWLQIDYRURI:DXVDXRQLWVEUHDFKRIFRQWUDFWFODLP
TXRWLQJ 0LFKLJDQ 3RGLDWULF 0HG $VVjQ Y 1DWLRQDO )RRW          EXW ILQG WKDW WKH GLVWULFW FRXUW HUUHG LQ GHWHUPLQLQJ WKDW
&DUH3URJUDP,QF1:G0LFK&W$SS                 GLGQRWH[FXVH9XOFDQjVXQWLPHO\FRXQWHUFODLP
7KHWKLUGHOHPHQWUHTXLUHVPRUHWKDQMXVWSXUSRVHIXO           %HFDXVHZHFRQFOXGHKRZHYHUWKDW9XOFDQKDVIDLOHGWRVWDWH
RUNQRZLQJEHKDYLRURQWKHSDUWRIWKHGHIHQGDQW,G7KH             DFODLPIRUWRUWLRXVLQWHUIHUHQFHZLWKDEXVLQHVVUHODWLRQVKLS
SODLQWLIIPXVWDOVRDOOHJHWKDWWKHLQWHUIHUHQFHZDVHLWKHUD       XQGHU0LFKLJDQODZZHILQGWKDWVXPPDU\MXGJPHQWRQWKDW
SHUVHZURQJIXODFWRUDODZIXODFWGRQHmZLWKPDOLFHDQG           FODLPLVDSSURSULDWHUHJDUGOHVVRIRXUUHDGLQJRI0LFK&RPS
XQMXVWLILHGLQODZIRUWKHSXUSRVHRILQYDGLQJWKHFRQWUDFWXDO          /DZV:HWKHUHIRUH$)),50WKHGLVWULFWFRXUWjV
ULJKWV RU EXVLQHVV UHODWLRQVKLS RI DQRWKHUl  ,G TXRWLQJ      MXGJPHQWDOEHLWLQVRPHLQVWDQFHVIRUGLIIHUHQWUHDVRQV
)HOGPDQ Y *UHHQ  1:G   0LFK &W $SS
m:KHUHWKHGHIHQGDQWjVDFWLRQVZHUHPRWLYDWHGE\               ,)DFWXDO%DFNJURXQG
OHJLWLPDWHEXVLQHVVUHDVRQVLWVDFWLRQVZRXOGQRWFRQVWLWXWH
LPSURSHUPRWLYHRULQWHUIHUHQFHl%36&OLQLFDO/DEVY%OXH             9XOFDQLVDPDQDJHPHQWFRPSDQ\WKDWSURYLGHVHPSOR\HHV
&URVVDQG%OXH6KLHOGRI0LFK1:G0LFK              WRYDULRXVVXSHUPDUNHWVLQWKH'HWURLWDUHD%HFDXVHLWZDV
&W$SS                                                         XQDEOHWRREWDLQZRUNHUVjFRPSHQVDWLRQFRYHUDJHLQWKHRSHQ
                                                                        PDUNHW 9XOFDQ WXUQHG WR WKH 0LFKLJDQ :RUNHUVj
   7KHIDFWVLQ&ODUNZHUHPXFKOLNHWKRVHKHUH&ODUNZDVD           &RPSHQVDWLRQ 3ODFHPHQW )DFLOLW\ WKH m)DFLOLW\l IRU
FRQWUDFWSK\VLFLDQDW:HVW6KRUH+RVSLWDO)HG$SS[DW            FRYHUDJH
7KHFRQWUDFWFRQWDLQHGDWHUPLQDWLRQFODXVHDOORZLQJ
HLWKHUSDUW\WRFDQFHOWKHDJUHHPHQWXSRQGD\VQRWLFH                7KH )DFLOLW\ ZDV FUHDWHG E\ WKH 0LFKLJDQ /HJLVODWXUH WR
7KH KRVSLWDO H[HUFLVHG WKLV RSWLRQ DQG WHUPLQDWHG &ODUNjV        SURYLGHZRUNHUVjFRPSHQVDWLRQLQVXUDQFHWRHPSOR\HHVZKR
HPSOR\PHQW,G&ODUNILOHGDODZVXLWDOOHJLQJDPRQJRWKHU           DUH mXQDEOH WR SURFXUH WKH LQVXUDQFH WKURXJK RUGLQDU\
WKLQJV EUHDFK RI FRQWUDFW DQG WRUWLRXV LQWHUIHUHQFH ZLWK D     PHWKRGVl0LFK&RPS/DZVD)RUWKHILUVW
EXVLQHVV UHODWLRQVKLS  ,G DW   &ODUN FODLPHG WKDW KLV   SROLF\\HDUWKHHPSOR\HUZRUNLQJZLWKLWVLQVXUDQFHDJHQW
WHUPLQDWLRQLQWHUIHUHGZLWKWKHEXVLQHVVUHODWLRQVKLSVKHKDG           FRPSOHWHV DQ DSSOLFDWLRQ IRUP DQG FRPSXWHV DQ HVWLPDWHG
GHYHORSHGZLWKFHUWDLQKRVSLWDOVWDIIZKRKDGEHHQUHIHUULQJ            DQQXDO SUHPLXP IRU WKH IRUWKFRPLQJ SROLF\ \HDU  7KH
SDWLHQWVWRKLP,GDW7KHFRXUWDIILUPHGWKHGLVWULFW          HVWLPDWHG SUHPLXP LV EDVHG XSRQ WKH HPSOR\HUjV WRWDO
FRXUWjVGLVPLVVDORIDOORI&ODUNjVFODLPV,GDWo$V         HVWLPDWHGSD\UROOIRUWKH\HDU7KHDPRXQWRIWKHSUHPLXP
WRWKHWRUWLRXVLQWHUIHUHQFHFODLPWKHFRXUWIRXQGWKDW&ODUN          GXHLVGHWHUPLQHGE\PXOWLSO\LQJWKH)DFLOLW\jVUDWHVE\WKH
KDG IDLOHG WR DOOHJH WKDW WKH LQWHUIHUHQFH ZDV GRQH ZLWK       SUHPLXPEDVLV7KHDSSOLFDEOHUDWHVDUHGHWHUPLQHGE\WKH
PDOLFLRXVLQWHQWRUWKDWLWZDVXQMXVWLILHG,GDW7KH          mFODVVLILFDWLRQlRUMREGHVFULSWLRQRIHDFKHPSOR\HHFRYHUHG
FRXUW IRXQG LQVWHDG WKDW WKH SDUWLHVj FRQWUDFW DXWKRUL]HG      E\WKHSROLF\7KHHPSOR\HUSD\VWKHLQLWLDOGHSRVLWSUHPLXP
&ODUNjVWHUPLQDWLRQDQGWKXVSURYLGHGDQXQGLVSXWHGOHJDO             ZKLFKLVEDVHGXSRQDSHUFHQWDJHRIWKHHPSOR\HUjVHVWLPDWHG
MXVWLILFDWLRQIRUWKHKRVSLWDOjVDFWLRQ                                DQQXDOSUHPLXPWRELQGFRYHUDJH7KHDJHQWIRUZDUGVWKH
                                                                        DSSOLFDWLRQ DQG WKH GHSRVLW SUHPLXP WR WKH )DFLOLW\  7KH
  /LNH WKRVH LQ &ODUN 9XOFDQjV DOOHJDWLRQV DUH VLPSO\           )DFLOLW\ELQGVWKHFRYHUDJHDQGUDQGRPO\VHOHFWVDVHUYLFLQJ
LQDGHTXDWH WR VXVWDLQ D FODLP XQGHU 0LFKLJDQ ODZ  :KLOH       FDUULHUWRZKRPWKHHPSOR\HULVmDVVLJQHGl7KHVHUYLFLQJ
9XOFDQ DVVHUWV WKDW :DXVDXjV FRQGXFW ZDV ZURQJIXO DQG            FDUULHULVVXHVDSROLF\LQLWVRZQQDPHDQGSURYLGHVWKHVDPH
     :DXVDX8QGHUZULWHUV                           1R       1R                         :DXVDX8QGHUZULWHUV           
      ,QV&RY9XOFDQ'HY                                                                            ,QV&RY9XOFDQ'HY

W\SHRIVHUYLFHWKDWLWZRXOGIRUDSROLF\ZULWWHQRQWKHRSHQ           :H DJUHH ZLWK WKH 0LFKLJDQ 6XSUHPH &RXUW WKDW
PDUNHW+RZHYHUXQOLNHWKHRSHQPDUNHWm>W@KHHPSOR\HULV          LVXQDPELJXRXV2QLWVIDFHLWSXUSRUWVWRJRYHUQ
VXEMHFWWRWKHFODVVLILFDWLRQVUDWHVH[SHULHQFHPRGLILFDWLRQV       DOO FRXQWHUFODLPV DOORZLQJ IRU WKH DVVHUWLRQ RI DQ\
DQG UXOHV GHWHUPLQHG E\ WKH )DFLOLW\l  0LFK :RUNHUVj       FRXQWHUFODLPWKDWZRXOGKDYHEHHQDYDLODEOHWRWKHGHIHQGDQW
&RPSHQVDWLRQ3ODFHPHQW)DFLOLW\,QIR	3URF+DQGERRN,            ZKHQWKHSODLQWLIIjVDFWLRQDURVH:KLOHOLPLWVWKH
6HHDOVR0LFK&RPS/DZV7KHILQDO             VFRSHRIUHFRYHU\DYDLODEOHXQGHUDQ\XQWLPHO\FRXQWHUFODLP
SUHPLXP LV GHWHUPLQHG E\ DQ DXGLW RI WKH LQVXUHGjV DFWXDO    LWGRHVQRWOLPLWWKHW\SHRIFRXQWHUFODLPWKDWFDQEHDVVHUWHG
SD\UROOUHFRUGVDWWKHHQGRIWKHSROLF\SHULRG                      :H ILQG WKDW WKH GLVWULFW FRXUW HUUHG LQ UHDGLQJ VXFK D
                                                                      OLPLWDWLRQLQWRWKHVDYLQJVVWDWXWHDQGWKDWWKHGLVWULFWFRXUW
  7KH HPSOR\HU UHPDLQV DVVLJQHG WR WKH VDPH VHUYLFLQJ          HUUHGZKHQLWGLVPLVVHG9XOFDQjVWRUWLRXVLQWHUIHUHQFHZLWKD
FDUULHUXQWLOWKHFRYHUDJHLVFDQFHOHGRUQRWUHQHZHG(DFK          EXVLQHVV UHODWLRQVKLS FRXQWHUFODLP EDVHG RQ WKDW LQFRUUHFW
\HDULQDGGLWLRQWRFDOFXODWLQJWKHILQDOSUHPLXPGXHIRUWKH        UHDGLQJRI
SULRU SROLF\ SHULRG WKH VHUYLFLQJ FDUULHU FRPSXWHV DQ
HVWLPDWHGGHSRVLWSUHPLXPIRUWKHXSFRPLQJ\HDUEDVHGXSRQ              &7KH&RXUW$IILUPVRQ2WKHU*URXQGV
WKH SD\UROO LQIRUPDWLRQ VXSSOLHG E\ WKH HPSOR\HU  7KH
VHUYLFLQJFDUULHUWKHQQRWLILHVWKHHPSOR\HUWKHDJHQWDQGWKH        7KLVILQGLQJGRHVQRWHQGRXULQTXLU\KRZHYHU:HFDQ
)DFLOLW\WKDWLWZLOOUHQHZWKHSROLF\XSRQWKHUHFHLSWRIWKH        DIILUPWKHGLVWULFWFRXUWjVMXGJPHQWRQDQ\JURXQGVXSSRUWHG
GHSRVLWSUHPLXP                                                      E\ WKH UHFRUG HYHQ JURXQGV WKDW DUH GLIIHUHQW IURP WKRVH
                                                                      FRQVLGHUHGRUUHOLHGXSRQE\WKHGLVWULFWFRXUW&KDRY+DOO
  2Q $XJXVW   9XOFDQ WKURXJK LWV RZQ LQVXUDQFH        +ROGLQJ &R ,QF  )G  o WK &LU 
DJHQW0LGZHVW8QGHUZULWHUV,QFDSSOLHGWRWKH)DFLOLW\WR         +D\HVY(TXLWDEOH(QHUJ\5HVRXUFHV&R)G
SURFXUHDSROLF\RIZRUNHUVjFRPSHQVDWLRQLQVXUDQFH7KH             WK&LU,QGHHGZHKDYHDQREOLJDWLRQWRHQIRUFHD
)DFLOLW\DVVLJQHG:DXVDXDVWKHVHUYLFLQJFDUULHUIRU9XOFDQjV        GLVWULFW FRXUWjV RUGHUV LI JURXQGV IRU GRLQJ VR DUH DSSDUHQW
SROLF\7KHILUVWSROLF\:DXVDXLVVXHGWR9XOFDQFRYHUHGWKH         IURP WKH UHFRUG EHIRUH XV 5XVVj .ZLN &DU :DVK ,QF Y
SHULRGIURP$XJXVWWR$XJXVW7KHVHFRQG           0DUDWKRQ3HWUROHXP&R)GWK&LU
SROLF\LVVXHGWR9XOFDQDFWHGDVDUHQHZDORIWKHILUVWDQG          :HILQGWKDWVXFKJURXQGVH[LVWLQWKLVFDVH
FRYHUHGWKHSHULRGIURP$XJXVWWR$XJXVW
9XOFDQZDVLVVXHGDWKLUGSROLF\ZKLFKUHQHZHGWKHVHFRQG             8QGHU 0LFKLJDQ ODZ D SODLQWLII PXVW HVWDEOLVK WKH
DQGFRYHUHGWKHSHULRGIURP$XJXVWWR$XJXVW             IROORZLQJHOHPHQWVWRSUHYDLORQDWRUWLRXVLQWHUIHUHQFHZLWK
7KHIRXUWKDQGILQDOSROLF\LVVXHGWR9XOFDQUHQHZHG           DEXVLQHVVUHODWLRQVKLSFODLP
WKH WKLUG DQG FRYHUHG WKH SHULRG IURP $XJXVW   WR
$XJXVW7KLVODVWSROLF\XOWLPDWHO\ZDVWHUPLQDWHG             WKH H[LVWHQFH RI D YDOLG EXVLQHVV UHODWLRQ QRW
HDUO\RQ'HFHPEHUIRUQRQSD\PHQWRISUHPLXPV                 QHFHVVDULO\ HYLGHQFHG E\ DQ HQIRUFHDEOH FRQWUDFW RU
$OO IRXU SROLFLHV ZHUH LGHQWLFDO LQ VWUXFWXUH DQG VFRSH RI     H[SHFWDQF\  NQRZOHGJH RI WKH UHODWLRQVKLS RU
FRYHUDJH                                                               H[SHFWDQF\RQWKHSDUWRIWKHGHIHQGDQWLQWHUIHUHUDQ
                                                                        LQWHQWLRQDOLQWHUIHUHQFHLQGXFLQJRUFDXVLQJDEUHDFKRU
  9XOFDQSDLGERWKWKHGHSRVLWSUHPLXPDQGWKHHVWLPDWHG                WHUPLQDWLRQ RI WKH UHODWLRQVKLS RU H[SHFWDQF\ DQG
SUHPLXPIRUWKHILUVWVHFRQGDQGWKLUGSROLFLHVDWRUVKRUWO\         UHVXOWLQJGDPDJHWRWKHSDUW\ZKRVHUHODWLRQVKLSRU
DIWHUHDFKSROLF\ZDVLVVXHG9XOFDQGLVSXWHGKRZHYHUDQG            H[SHFWDQF\KDVEHHQGLVUXSWHG
       :DXVDX8QGHUZULWHUV                            1R       1R                        :DXVDX8QGHUZULWHUV           
         ,QV&RY9XOFDQ'HY                                                                            ,QV&RY9XOFDQ'HY

7KH DSSHDOV FRXUW DOORZHG 3DWWHUVRQjV HVWDWH WR DVVHUW WKH        WKHUHIRUH UHIXVHG WR SD\ WKH DPRXQW RI WKH ILQDO SUHPLXP
FRXQWHUFODLP ZLWKRXW WKH UHFRYHU\ OLPLWDWLRQ LPSRVHG E\             FDOFXODWHGE\:DXVDXXQGHUDOOIRXUSROLFLHV9XOFDQFODLPHG
,GDW                                                  WKDW :DXVDX LPSURSHUO\ FODVVLILHG FHUWDLQ RI 9XOFDQjV
                                                                          HPSOR\HHVDVVXSHUPDUNHWHPSOR\HHVZKHQWKH\ZHUHLQIDFW
   :DOODFHDSSHDOHGWRWKH0LFKLJDQ6XSUHPH&RXUWZKLFK                 FOHULFDO HPSOR\HHV  9XOFDQ FODLPHG WKDW WKHVH
LQDRQHSDUDJUDSKSHUFXULDPGHFLVLRQUHYHUVHGWKHFRXUWRI             PLVFODVVLILFDWLRQV XQGXO\ LQFUHDVHG WKH SUHPLXPV :DXVDX
DSSHDOVDQGUHLQVWDWHGWKHWULDOFRXUWjVUXOLQJ:DOODFH            VRXJKWWRFKDUJH9XOFDQEHFDXVHJLYHQWKHULVNRIRQWKHMRE
1:G7KHFRXUWKHOGWKDWm>W@KHZRUGLQJRI0&/                LQMXU\ DVVRFLDWHG ZLWK HDFK SRVLWLRQ WKH UDWH FKDUJHG IRU
06$$LVFOHDUDQGXQDPELJXRXV                    VXSHUPDUNHWHPSOR\HHVZDVPDQ\WLPHVKLJKHUWKDQWKHUDWH
DQGLVQRWVXEMHFWWRMXGLFLDOH[SDQVLRQlDQGFRQFOXGHGWKDW              FKDUJHGIRUFOHULFDOHPSOR\HHV9XOFDQDVVHUWHGWKDWPDQ\RI
WKHUHFRYHU\OLPLWDWLRQDSSHDULQJRQWKHIDFHRIWKHVWDWXWH              LWVHPSOR\HHVVKRXOGKDYHEHHQUHFODVVLILHGDVFOHULFDOUDWKHU
PXVWEHHQIRUFHGUHJDUGOHVVRIWKHFLUFXPVWDQFHV,G                  WKDQVXSHUPDUNHWHPSOR\HHVDQGWKDWLWVSUHPLXPREOLJDWLRQV
                                                                          VKRXOGKDYHEHHQUHGXFHG
  :DXVDX DWWHPSWV WR GLVWLQJXLVK WKH 0LFKLJDQ 6XSUHPH
&RXUWjV RSLQLRQ RQ WKH JURXQGV WKDW WKH FODLPV DQG                  :DXVDX GLG QRW DJUHH ZLWK 9XOFDQjV UHTXHVW IRU
FRXQWHUFODLPV LQ :DOODFH DURVH RXW RI WKH VDPH DFFLGHQW          UHFODVVLILFDWLRQ DQG LQVLVWHG RQ WKH SD\PHQW RI WKRVH
:DXVDX DOVR DUJXHV WKDW WKH SROLF\ EHKLQG VWDWXWHV RI             SUHPLXPVLWFODLPHGZHUHGXH$IWHUXQVXFFHVVIXOHIIRUWVWR
OLPLWDWLRQVVKRXOGQRWDOORZ9XOFDQWRUHVXUUHFWLWVRWKHUZLVH            REWDLQSD\PHQWRIWKRVHSUHPLXPV:DXVDXVHQWDOHWWHURQ
XQWLPHO\FRXQWHUFODLP7KH0LFKLJDQ6XSUHPH&RXUWGLGQRW                6HSWHPEHUWRWKH)DFLOLW\DGYLVLQJLWWKDW9XOFDQKDG
UHO\ XSRQ RU HYHQ PHQWLRQ WKHVH JURXQGV DV D EDVLV IRU LWV     IDLOHG WR SD\ LWV RXWVWDQGLQJ SUHPLXP EDODQFH DQG WKDW
GHFLVLRQ KRZHYHU  ,QGHHG WKH FRXUW VKDUSO\ UHEXNHG WKH         :DXVDXEHOLHYHG9XOFDQZDVQRORQJHUDFWLQJLQJRRGIDLWK
FRXUWRIDSSHDOjVDWWHPSWWRFLUFXPYHQWWKHSODLQODQJXDJHRI             RUHQWLWOHGWRIXUWKHULQVXUDQFH
WKHVWDWXWHRQSROLF\JURXQGV
                                                                            7KH)DFLOLW\PDGHDQLQLWLDOGHWHUPLQDWLRQDVWRWKHSURSHU
   7KHRQO\RWKHUGHFLVLRQUHIHUULQJWRLV0XGJH               FODVVLILFDWLRQ RI 9XOFDQjV HPSOR\HHV HVVHQWLDOO\ DJUHHLQJ
Y0DFRPE&W\1:GQ0LFK                    ZLWK:DXVDXjVFODVVLILFDWLRQV9XOFDQVWLOOGLGQRWSD\DQ\
ZKHUHWKH0LFKLJDQ6XSUHPH&RXUWKHOGWKDWGRHV                IXUWKHU SUHPLXPV WR :DXVDX DQG LQVWHDG DSSHDOHG WKH
QRWDSSO\WR3ULVRQHU5HLPEXUVHPHQWWR&RXQW\$FW35&$                  )DFLOLW\jVGHWHUPLQDWLRQWRWKH)DFLOLW\$SSHDOV&RPPLWWHHRQ
FRXQWHUFODLPVEHFDXVHWKHSODLQODQJXDJHRIOLPLWV             'HFHPEHU2QsDQXDU\DIWHUDGHFLVLRQE\
LWVDSSOLFDWLRQWRFODLPVZLWKOLPLWDWLRQVSHULRGVSUHVFULEHGE\          WKH )DFLOLW\ $SSHDOV &RPPLWWHH DSSURYLQJ WKH )DFLOLW\jV
&KDSWHU  RI WKH 5HYLVHG sXGLFDWXUH $FW WKH OLPLWDWLRQ          FODVVLILFDWLRQV9XOFDQDSSHDOHGWKHFODVVLILFDWLRQLVVXHWRWKH
SHULRG IRU 35&$ FODLPV DUH IRXQG LQ DQRWKHU FKDSWHU             0LFKLJDQ,QVXUDQFH&RPPLVVLRQHU2QsXO\WKH
$JDLQ WKH 0LFKLJDQ 6XSUHPH &RXUW FOHDUO\ H[SUHVVHG LWV            &RPPLVVLRQHU FRQGXFWHG D KHDULQJ RQ WKLV PDWWHU DQG D
EHOLHIWKDWLVXQDPELJXRXVDQGPXVWEHDSSOLHG                 VHWWOHPHQWZDVSODFHGRQWKHUHFRUGE\ZKLFK9XOFDQDQGWKH
DFFRUGLQJO\                                                             )DFLOLW\ DJUHHG WR D SDUWLDO UHFODVVLILFDWLRQ RI 9XOFDQjV
                                                                          HPSOR\HHV$UHDXGLWZDVFRQGXFWHGE\WKH)DFLOLW\EDVHG
                                                                          XSRQ WKH VHWWOHPHQW DQG WKH ILUVW VHFRQG DQG WKLUG ILQDO
     
      :KLOH WKH 0LFKLJDQ 6XSUHPH &RXUW XOWLPDWHO\ DOORZHG WKH DVVHUWLRQ   SUHPLXP FDOFXODWLRQV ZHUH UHYLVHG  )LQDOO\ RQ sXQH 
RI D FRXQWHUFODLP LQ0XGJH   LW GLG VR XQGHU WKH FRPPRQ ODZ WKHRU\ RI     WKHVHWWOHPHQWZDVILQDOL]HGE\DZULWWHQ6WLSXODWLRQIRU
UHFRXSPHQW   QRWXQGHU  
     :DXVDX8QGHUZULWHUV                             1R       1R                           :DXVDX8QGHUZULWHUV            
      ,QV&RY9XOFDQ'HY                                                                                ,QV&RY9XOFDQ'HY

6HWWOHPHQWVLJQHGE\ERWK9XOFDQDQGWKH)DFLOLW\GHFODULQJ             RULQWHUSUHWUHJDUGLQJFRXQWHUFODLPV,QGHHGLW
9XOFDQjV RXWVWDQGLQJ REOLJDWLRQ WR :DXVDX WR EH                   PDGHTXLWHFOHDUWKDWLWZDVQRWGRLQJVR
  'HVSLWH DJUHHLQJ WR WKH UHFODVVLILFDWLRQV
KRZHYHUDQGH[HFXWLQJWKH6WLSXODWLRQIRU6HWWOHPHQWEDVHG                0RUHLQVWUXFWLYHWRWKHTXHVWLRQZHIDFHDUHWKHWZRSHU
RQ WKH UHDXGLW 9XOFDQ VWLOO IDLOHG WR SD\ :DXVDX DQ\          FXULDPGHFLVLRQVLQ:DOODFHY3DWWHUVRQ1:G
DGGLWLRQDOSUHPLXPSD\PHQWV                                            0LFK&W$SSDQG1:G0LFK
                                                                        :DOODFH DQG 3DWWHUVRQ ZHUH LQYROYHG LQ D PRWRU YHKLFOH
,,3URFHGXUDO%DFNJURXQG                                              FROOLVLRQ WKDW SUHVXPDEO\ NLOOHG 3DWWHUVRQ  :DOODFH 
                                                                        1:GDW:DOODFHILOHGVXLWDJDLQVW3DWWHUVRQjVHVWDWH
   2Q)HEUXDU\DIWHU9XOFDQ UHIXVHGWRUHPLWWKH             WHQGD\VEHIRUHWKHVWDWXWHRIOLPLWDWLRQVUDQRQKLVFODLP$
ILQDOSUHPLXPVWR:DXVDX:DXVDXFRPPHQFHGWKLVGLYHUVLW\               IHZ PRQWKV ODWHU DIWHU ILOLQJ DQ DQVZHU 3DWWHUVRQjV HVWDWH
DFWLRQ IRU EUHDFK RI FRQWUDFW DQG XQMXVW HQULFKPHQW  2Q       ILOHG D FRXQWHUFODLP  :DOODFH ILOHG D PRWLRQ IRU SDUWLDO
1RYHPEHU   WKH GLVWULFW FRXUW DOORZHG 9XOFDQ WR         VXPPDU\MXGJPHQWDUJXLQJWKDWWKHFRXQWHUFODLPZDVEDUUHG
DVVHUWFRXQWHUFODLPVDJDLQVW:DXVDXIRUEUHDFKRIFRQWUDFW              E\WKHVWDWXWHRIOLPLWDWLRQV7KHWULDOFRXUWDJUHHGWKDWWKH
DQGIRUWRUWLRXVLQWHUIHUHQFHZLWKDEXVLQHVVUHODWLRQVKLSWKH         FRXQWHUFODLP ZDV XQWLPHO\ EXW DOORZHG WKH FRXQWHUFODLP
ODWWHU DOOHJHGO\ DULVLQJ RXW RI WKH 6HSWHPEHU   OHWWHU   XQGHU    3XUVXDQW WR   WKH WULDO FRXUW
:DXVDXVHQWWRWKH)DFLOLW\                                            OLPLWHG UHFRYHU\ XQGHU WKH FRXQWHUFODLP WR WKH DPRXQW
                                                                        HVWDEOLVKHGE\:DOODFHjVFODLP
  9XOFDQPRYHGIRUVXPPDU\MXGJPHQWRQ:DXVDXjVFODLPV
DUJXLQJWRWKHGLVWULFWFRXUWWKDW:DXVDXjVEUHDFKRIFRQWUDFW             3DWWHUVRQjV HVWDWH DSSHDOHG DUJXLQJ WKDW WKH WULDO FRXUW
FODLP ZDV XQWLPHO\ XQGHU 0LFKLJDQjV VL[\HDU VWDWXWH RI          PLVDSSOLHG    7KH 0LFKLJDQ &RXUW RI $SSHDOV
OLPLWDWLRQVIRUDFWLRQVRQDZULWWHQFRQWUDFWDQGWKDWEHFDXVH         DJUHHG FRQFOXGLQJ WKDW XQGHU WKH FLUFXPVWDQFHV VXFK D
DZULWWHQFRQWUDFWH[LVWHGEHWZHHQWKHSDUWLHV:DXVDXFRXOG            OLPLWDWLRQ RQ WKH FRXQWHUFODLP SURGXFHG DQ DEVXUG UHVXOW
QRWDVVHUWDFODLPIRUXQMXVWHQULFKPHQW9XOFDQDOVRDUJXHG           %HFDXVH0LFKLJDQZDVDFRQWULEXWRU\QHJOLJHQFHVWDWHWKH
WKDWLQWKHHYHQW:DXVDXjVFRQWUDFWFODLPZDVWLPHO\LWZDV           FRXUWUHDVRQHGWKDWLI:DOODFHZDVHYHQSDUWLDOO\WREODPHIRU
:DXVDXDQGQRW9XOFDQZKREUHDFKHGWKHDJUHHPHQWEHWZHHQ                WKHDFFLGHQW3DWWHUVRQjVHVWDWHFRXOGUHFRYHUQRWKLQJRQLWV
WKH SDUWLHV  :DXVDX DOVR PRYHG IRU VXPPDU\ MXGJPHQW           FRXQWHUFODLP  &RQWULEXWRU\ QHJOLJHQFH ZRXOG EDU DQ\
DUJXLQJWKDWWKHUHZHUHQRPDWHULDOLVVXHVRIIDFWRQLWVEUHDFK        UHFRYHU\E\:DOODFHDQGVLQFH3DWWHUVRQjVHVWDWHZDVOLPLWHG
RIFRQWUDFWFODLPDQGWKDW:DXVDXZDVHQWLWOHGWRMXGJPHQW              WRWKHDPRXQW:DOODFHUHFRYHUHGLWWRRZRXOGEHEDUUHGIURP
RQ WKDW FODLPDVDPDWWHURIODZLQWKHVHWWOHPHQWDPRXQW            UHFRYHULQJDQ\WKLQJHYHQLQWKHH[WUHPHFDVHZKHUH:DOODFH
7KHGLVWULFWFRXUWUHMHFWHG9XOFDQjVDUJXPHQWVDQGJUDQWHG              ZDVHQWLUHO\WREODPH7KHFRXUWIRXQGWKLVFRXOGQRWEHWKH
VXPPDU\ MXGJPHQW LQ IDYRU RI :DXVDX RQ WKH SDUWLHVj             UHVXOWWKHOHJLVODWXUHLQWHQGHGDQGUHIXVHGWRDSSO\LWEHFDXVH
FRPSHWLQJFRQWUDFWFODLPV7KHGLVWULFWFRXUWGLGKRZHYHU            WKHFRXUWUHDVRQHGmWKHUHLVQRQHHGWRSURWHFWSODLQWLIIIURP
JUDQWVXPPDU\MXGJPHQWIRU9XOFDQRQWKHLVVXHRI:DXVDXjV              GHIHQGDQWjVVWDOHFODLPLQWKDWLWLVQRVWDOHUWKDQKLVRZQ
XQMXVW HQULFKPHQW FODLP ILQGLQJ WKDW WKH SDUWLHVj FRQWUDFW      EHLQJEDVHGXSRQWKHYHU\VDPHDFFLGHQWl,GDWo
JRYHUQHG:DXVDXjVULJKWWRUHOLHI
 :DXVDXDOVRPRYHGSXUVXDQWWR5XOHEWRGLVPLVV                   
                                                                              7KH FRXUW QHYHU H[SOLFLWO\ PHQWLRQV ZKDW KLV FODLP RU FODLPV ZHUH
9XOFDQjV WRUWLRXV LQWHUIHUHQFH ZLWK EXVLQHVV UHODWLRQVKLS          EXW WKH VXEVHTXHQW ODQJXDJH LQ WKH GHFLVLRQ VXJJHVWV KH DVVHUWHG D FODLP
                                                                        IRU QHJOLJHQFH
    :DXVDX8QGHUZULWHUV                           1R       1R                          :DXVDX8QGHUZULWHUV            
      ,QV&RY9XOFDQ'HY                                                                             ,QV&RY9XOFDQ'HY

LQWHUIHUHQFH FRXQWHUFODLP  7KXV LI   DSSOLHV       FRXQWHUFODLPDUJXLQJWKDWLWZDVXQWLPHO\XQGHU0LFKLJDQjV
9XOFDQjVFRXQWHUFODLPWKRXJKRWKHUZLVHXQWLPHO\FRXOGVWLOO         WKUHH\HDUVWDWXWHRIOLPLWDWLRQVIRUWRUWDFWLRQVRIWKDWQDWXUH
EHDVVHUWHGDVDQRIIVHWDJDLQVW:DXVDXjVFRQWUDFWFODLPV            :KLOHDFNQRZOHGJLQJWKHXQWLPHOLQHVVRILWVFRXQWHUFODLP
                                                                      9XOFDQDUJXHGWKDWLWFRXOGVWLOODVVHUWWKHFODLPSXUVXDQWWR
  7KH GLVWULFW FRXUW DJUHHG ZLWK :DXVDX KRZHYHU WKDW         D VSHFLDO VDYLQJV VWDWXWH JRYHUQLQJ FRXQWHUFODLPV 0LFK
9XOFDQjVFRXQWHUFODLPPXVWmUHODWHWRl:DXVDXjVEUHDFKRI             &RPS /DZV    7KH GLVWULFW FRXUW IRXQG
FRQWUDFW FODLP LQ RUGHU IRU   WR DSSO\  %HFDXVH     LQDSSOLFDEOH DQG JUDQWHG :DXVDXjV PRWLRQ WR
9XOFDQjV FRXQWHUFODLP VRXQGV LQ WRUW DQG LV HQWLUHO\           GLVPLVV9XOFDQjVFRXQWHUFODLP
LQGHSHQGHQW RI :DXVDXjV FRQWUDFW FODLP WKH GLVWULFW FRXUW
IRXQGWKDWWKHFRXQWHUFODLPVDYLQJVVWDWXWHGLGQRWDSSO\               2Q$SULOWKHGLVWULFWFRXUWHQWHUHGMXGJPHQWLQ
                                                                      IDYRU RI :DXVDX DQG DJDLQVW 9XOFDQ LQ WKH DPRXQW RI
   ,QUHDFKLQJLWVFRQFOXVLRQWKHGLVWULFWFRXUWUHOLHGRQWKH        9XOFDQILOHGDWLPHO\PRWLRQIRUUHFRQVLGHUDWLRQ
0LFKLJDQ&RXUWRI$SSHDOjVRSLQLRQLQ7KLHOY7KH6FHQH             DQG WR DPHQG RUGHU RQ $SULO   ZLWK UHVSHFW WR WKH
,QF1:G0LFK&W$SS7KHUHWKHVWDWH         FRXUWjVRUGHUJUDQWLQJVXPPDU\MXGJPHQWWR:DXVDX9XOFDQ
FRXUW GLVPLVVHG D QXPEHU RI FURVVFODLPV DV XQWLPHO\          ILOHGDQRWKHUWLPHO\PRWLRQIRUUHFRQVLGHUDWLRQDQGWRDPHQG
H[SOLFLWO\ ILQGLQJ WKDW WKH\ ZHUH QRW mVDYHGl EHFDXVH WKH\    MXGJPHQWRQ$SULOWKLVWLPHDVWRWKHFRXUWjVRUGHU
ZHUHLQGHSHQGHQWRIWKHFODLPVLQWKHSULQFLSDODFWLRQ7KH          GLVPLVVLQJWKHFRXQWHUFODLP7KHGLVWULFWFRXUWGHQLHGERWKRI
TXHVWLRQSUHVHQWHGLQWKDWFDVHGLGQRWDULVHXQGHU       WKHVHPRWLRQVRQ0D\7KLVDSSHDOIROORZHG
KRZHYHU$VWKHFRXUWQRWHGLQ7KLHOSURYLGHV
IRUWKHWROOLQJRIFRXQWHUFODLPVLWGRHVQRWDSSO\WRFURVV         ,,,$QDO\VLV
FODLPV,GDW7KXVWKHVWDWHFRXUWFRQFOXGHGWKDWLW
ZRXOGQHHGWRUHVRUWWRLWVHTXLWDEOHSRZHUVLILWZHUHWRDOORZ        $ 7KH 'LVWULFW &RXUW &RUUHFWO\ *UDQWHG 6XPPDU\
DFURVVSODLQWLIIWRDVVHUWRWKHUZLVHXQWLPHO\FODLPVDJDLQVW              sXGJPHQW WR :DXVDX RQ LWV %UHDFK RI &RQWUDFW
FURVVGHIHQGDQWV,G:KLOHWKHFRXUWFRQFOXGHGWKDWLWGLG               &ODLP
KDYHVXFKSRZHULWDOVRFRQFOXGHGWKDWLWVKRXOGOLPLWWKH
H[HUFLVHRIWKDWSRZHUWRFLUFXPVWDQFHVLQZKLFKWKHFURVV             7KHGLVWULFWFRXUWIRXQGWKDW9XOFDQEUHDFKHGLWVFRQWUDFWV
FODLPVDVVHUWFODLPVIRULQGHPQLILFDWLRQRUFRQWULEXWLRQ,G        RILQVXUDQFHZLWK:DXVDXZKHQLWUHIXVHGWRUHPLWWKHILQDO
7KHFRXUWUHDVRQHGWKDWEHFDXVHVXFKFODLPVFRXOGQRWKDYH           SUHPLXPVGXHDVGHVLJQDWHGLQWKH6WLSXODWLRQRI6HWWOHPHQW
EHHQEURXJKWLQWKHDEVHQFHRIWKHSULQFLSDODFWLRQLWZDV           7KH GLVWULFW FRXUW DOVR IRXQG WKDW :DXVDXjV FRQWUDFW FODLP
mHTXLWDEOHl WR DOORZ WKRVH FODLPV WR EH DVVHUWHG HYHQ LI    ZDV WLPHO\ EHFDXVH LW ZDV ILOHG ZLWKLQ VL[ \HDUV RI WKH
XQWLPHO\%HFDXVHLWVGHFLVLRQZDVEDVHGRQWKHH[HUFLVHRI          SUHPLXP GHWHUPLQDWLRQV UHIOHFWHG LQ WKH VHWWOHPHQW
LWVHTXLWDEOHSRZHUVKRZHYHUWKHFRXUWUHIXVHGWRDOORZWKH         DJUHHPHQW  $OWKRXJK WKH GLVWULFW FRXUW DFNQRZOHGJHG WKDW
DVVHUWLRQ RI ZKROO\ LQGHSHQGHQW XQWLPHO\ FURVVFODLPV          9XOFDQjV LQLWLDO UHIXVDO WR SD\ DQ\ DGGLWLRQDO SUHPLXPV
ILQGLQJWKDWHTXLW\GLGQRWFRXQVHOVXFKDUHVXOW7KHFRXUWLQ      RFFXUUHGDVWRWZRRIWKHWKUHHSROLF\\HDUVPRUHWKDQVL[
7KLHO WKHQ RUGHUHG WKH FURVVFODLPV LQ WKDW FDVH GLVPLVVHG    \HDUV EHIRUH WKH ILOLQJ RI WKH FRPSODLQW WKH GLVWULFW FRXUW
EHFDXVHWKH\ZHUHLQGHSHQGHQWRIWKHSULQFLSDOODZVXLW,G
:KLOH WKH FRXUW LQ 7KLHO PD\ KDYH FUHDWHG DQ HTXLWDEOH
                                                                          
VDYLQJVSURYLVLRQIRUFURVVFODLPVLWGLGQRWSXUSRUWWRDSSO\             7KH DPRXQW GLIIHUV IURP WKH sXQH   DPRXQW EHFDXVH D ILQDO
                                                                      UHDXGLW ZDV FRPSOHWHG DIWHU WKH VHWWOHPHQW DJUHHPHQW ZDV VLJQHG
                                                                      UHVXOWLQJ LQ D FUHGLW RI 
      :DXVDX8QGHUZULWHUV                             1R       1R                         :DXVDX8QGHUZULWHUV             
       ,QV&RY9XOFDQ'HY                                                                              ,QV&RY9XOFDQ'HY

FRQFOXGHG WKDW FRQWUDFW FODLPV IRU WKRVH SD\PHQWV GLG QRW        UHODWLRQVKLS FODLP LV JHQHUDOO\ JRYHUQHG E\ D WKUHH\HDU
DFFUXHIRUVWDWXWHRIOLPLWDWLRQVSXUSRVHVXQWLOWKH0LFKLJDQ            VWDWXWH RI OLPLWDWLRQV  0LFK &RPS /DZV  
,QVXUDQFH&RPPLVVLRQHUGHWHUPLQHGWKHSUHFLVHDPRXQWGXH                sDPHVY/RJHH1:G0LFK&W$SS
2Q WKLV SRLQW WKH GLVWULFW FRXUW UHDVRQHG WKDW WKH VWDWXWRU\   :DXVDX DUJXHV DFFRUGLQJO\ WKDW 9XOFDQ KDG RQO\ XQWLO
DSSHDOVSURFHVV9XOFDQZDVHQWLWOHGWRDQGGLGLQYRNHZDV              6HSWHPEHU   WR ILOH WKLV FODLP DJDLQVW LW D GHDGOLQH
LPSOLHGLQWRHDFKSROLF\RILQVXUDQFHLVVXHGDWWKHGLUHFWLRQ            9XOFDQGLGQRWPHHW9XOFDQGLGQRWILOH WKHFRXQWHUFODLP
RI WKH )DFLOLW\  7KXV WKH GLVWULFW FRXUW FRQFOXGHG WKDW       XQWLO1RYHPEHU
:DXVDXFRXOGQRWHQIRUFHLWVDVVHUWHGULJKWWRSUHPLXPVXQWLO
WKHDSSHDOVSURFHVVZLWKUHVSHFWWRWKHVFRSHRIWKHSUHPLXPV              9XOFDQ DUJXHV WKDW GHVSLWH 0LFK &RPS /DZV
RZHGZDVFRPSOHWHGDQGWKDWWKHVWDWXWHRIOLPLWDWLRQVZLWK               LWV FRXQWHUFODLP LV WLPHO\ E\ YLUWXH RI
UHVSHFWWRDQ\FODLPIRUVXFKSUHPLXPVGLGQRWEHJLQWRUXQ              0LFKLJDQjVmFRXQWHUFODLPVDYLQJVVWDWXWHlZKLFKSURYLGHV
XQWLO WKDW SRLQW  +DYLQJ IRXQG D YDOLG FRQWUDFW DQG DQ
HQIRUFHDEOH FRQWUDFW FODLP WKH GLVWULFW FRXUW GLVPLVVHG             >W@RWKHH[WHQWRIWKHDPRXQWVHVWDEOLVKHGE\SODLQWLIIjV
:DXVDXjVTXDVLFRQWUDFWXDOXQMXVWHQULFKPHQWFODLP                       FODLPWKHSHULRGVRIOLPLWDWLRQVSUHVFULEHGLQWKLVFKDSWHU
                                                                           GRQRWEDUDFODLPPDGHE\ZD\RIFRXQWHUFODLPXQOHVV
   9XOFDQPDNHVWKHVDPHDUJXPHQWVKHUHWKDWLWSUHVHQWHG                  WKH FRXQWHUFODLP ZDV EDUUHG DW WKH WLPH WKH SODLQWLIIjV
EHORZUHJDUGLQJWKHWLPHOLQHVVRI:DXVDXjVFRQWUDFWDFWLRQ                 FODLPDFFUXHG
DQGWKHSDUWLHVjULJKWVDQGREOLJDWLRQVXQGHUWKHSROLFLHVRI
LQVXUDQFH  :H KDYH UHYLHZHG WKH SDUWLHVj EULHIV DQG WKH        0LFK &RPS /DZV    ,Q HVVHQFH WKLV VWDWXWH
UHFRUG EHORZ DQG ILQG WKDW WKH GLVWULFW FRXUW FRUUHFWO\ DQG    DOORZV D GHIHQGDQW WR EULQJ DQ RWKHUZLVH XQWLPHO\
PHWLFXORXVO\DQDO\]HGWKHVHLVVXHV:HILQGLWXQQHFHVVDU\WR           FRXQWHUFODLPLIWKHFRXQWHUFODLPZRXOGKDYHEHHQWLPHO\KDG
UHVWDWH WKDW DQDO\VLV KHUH DQG LQVWHDG DGRSW WKH GLVWULFW      LWEHHQILOHGZKHQWKHSODLQWLIIjVFODLPDFFUXHG7KHVWDWXWH
FRXUWjVDQDO\VLVDVRXURZQ)RUWKHUHDVRQVVWDWHGLQ6HFWLRQ          H[DFWV D FRVW IRU WKLV ULJKW KRZHYHU  7KH GHIHQGDQWjV
,,,RIWKHGLVWULFWFRXUWjVRSLQLRQZH$)),50WKHGLVWULFW              UHFRYHU\LVOLPLWHGWRWKHDPRXQWLIDQ\WKHSODLQWLIIUHFRYHUV
FRXUWjVJUDQWRIVXPPDU\MXGJPHQWWR:DXVDXRQLWVEUHDFK                DJDLQVWLWnLQRWKHUZRUGVWKHGHIHQGDQWFDQRQO\XVHWKLV
RI FRQWUDFW FODLP DQG 9XOFDQjV EUHDFK RI FRQWUDFW                 SURYLVLRQ WR RIIVHW DQ\ REOLJDWLRQV LW PLJKW KDYH WR WKH
FRXQWHUFODLPDQG$)),50WKHGLVPLVVDORI:DXVDXjVXQMXVW                 SODLQWLIIEXWQRWDVDQLQGHSHQGHQWEDVLVIRUUHFRYHU\LWFDQ
HQULFKPHQWFODLP                                                        RSHUDWHDVDVKLHOGEXWQRWDVDVZRUG

    % 7KH 'LVWULFW &RXUW (UUHG LQ 'HWHUPLQLQJ 7KDW                  ,QWKHILUVWSDUWRILWVRSLQLRQWKHGLVWULFWFRXUWFRQFOXGHG
       0&/'RHV1RW$SSO\                                  DQG ZH FRQFXU WKDW :DXVDXjV EUHDFK RI FRQWUDFW FODLP
                                                                         DFFUXHG DW WKH HDUOLHVW RQ sXO\  nZKHQ 9XOFDQ
  :HKROGKRZHYHUWKDWWKHGLVWULFWFRXUWHUUHGLQILQGLQJ             DJUHHG RQ WKH UHFRUG LQ IURQW RI WKH 0LFKLJDQ ,QVXUDQFH
WKDW 9XOFDQjV FRXQWHUFODLP IRU WRUWLRXV LQWHUIHUHQFH ZLWK D       &RPPLVVLRQHUWRDPHFKDQLVPIRUDVVHVVLQJWKHSUHPLXPV
EXVLQHVVUHODWLRQVKLSLVEDUUHGE\WKHVWDWXWHRIOLPLWDWLRQV           RZHG XQGHU WKH SROLF\nRU DW WKH ODWHVW RQ sXQH 
                                                                         nZKHQ9XOFDQDFNQRZOHGJHGLWVGHEWLQZULWLQJDIWHU
  9XOFDQjVFRXQWHUFODLPLVEDVHGRQWKHOHWWHU:DXVDXVHQWWR            WKHUHDXGLW%RWKRIWKHVHDFFUXDOGDWHVIDOOVZLWKLQWKUHH
WKH )DFLOLW\ RQ 6HSWHPEHU    $V WKH GLVWULFW FRXUW      \HDUVRI6HSWHPEHUWKHGDWHRQZKLFK9XOFDQDVVHUWV
FRUUHFWO\ GHWHUPLQHG D WRUWLRXV LQWHUIHUHQFH ZLWK EXVLQHVV        :DXVDX FRPPLWWHG WKH DFWV JLYLQJ ULVH WR LWV WRUWLRXV
