           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


 '$11< / 6$1)25'DQG             ;
 &20(//$ 6$1)25'                  
           3ODLQWLIIV$SSHOOHHV 
                                      1R
                                   
            Y                      !
                                   
                                   
 +$59$5' ,1'8675,(6 ,1&         
 +$<(6$/%,21 &203$1<             
 DQG+$59$5' ,1'8675,(6j           
 s$&.621 3/$17 +285/<              
                                   
 5$7( (03/2<((6j 3(16,21           
 3/$1                             
        'HIHQGDQWV$SSHOODQWV 
                                   
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW$QQ$UERU
     1Rn*HRUJH&6WHHK'LVWULFWsXGJH
                     $UJXHG$XJXVW
              'HFLGHGDQG)LOHG$XJXVW
 %HIRUH&/$<*,/0$1DQG)$55,6&LUFXLWsXGJHV


    
     7KH +RQRUDEOH sHURPH )DUULV &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV
&RXUW RI $SSHDOV IRU WKH 1LQWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ



                                   
     6DQIRUGHWDOY+DUYDUG                      1R       1R                    6DQIRUGHWDOY+DUYDUG       
      ,QGXVWULHVHWDO                                                                                        ,QGXVWULHVHWDO

                      BBBBBBBBBBBBBBBBB                                 SURFHGXUHVVHWIRUWKLQWKHSODQ$VVXFKWKHFRXUWGLGQRWHUU
                                                                        LQ UHPDQGLQJ WKH IDFWXDO LVVXH RI 6DQIRUGjV HOLJLELOLW\ IRU
                           &2816(/                                      EHQHILWVWRWKH%RDUGDQGGLVPLVVLQJ+DUYDUGjVFRXQWHUFODLP
                                                                        IRUUHLPEXUVHPHQW
$5*8('%UXFH*'DYLV'<.(0$*266(77/DQVLQJ
0LFKLJDQ IRU $SSHOODQWV  *HRUJH s %UDQQLFN sDFNVRQ                               ,,,&21&/86,21
0LFKLJDQ IRU $SSHOOHHV  21 %5,()  %UXFH * 'DYLV
'<.(0$*266(77/DQVLQJ0LFKLJDQ IRU$SSHOODQWV                       )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH
*HRUJHs%UDQQLFNsDFNVRQ0LFKLJDQIRU$SSHOOHHV                   MXGJPHQWRIWKHGLVWULFWFRXUW
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
  521$/' /(( *,/0$1 &LUFXLW sXGJH  2Q sXO\ 
 'DQQ\ / 6DQIRUG WRRN HDUO\ UHWLUHPHQW IURP KLV
HPSOR\HU+DUYDUG,QGXVWULHV,QFLQRUGHUWRVHFXUHFHUWDLQ
KHDOWK EHQHILWV XQGHU DQ H[SLULQJ FROOHFWLYH EDUJDLQLQJ
DJUHHPHQW &%$  +DUYDUGjV &HQWUDO %RDUG RI
$GPLQLVWUDWLRQWKH%RDUGGHWHUPLQHGWKDW6DQIRUGTXDOLILHG
IRUHDUO\UHWLUHPHQWDQGDSSURYHGKLVEHQHILWVDFFRUGLQJO\
)RXUPRQWKVODWHU+DUYDUGFRQFOXGHGWKDW6DQIRUGKDGEHHQ
PLVWDNHQO\ JUDQWHG HDUO\ UHWLUHPHQW  ,W WKHUHIRUH LQIRUPHG
6DQIRUG WKDW KH ZRXOG KDYH WR UHWXUQ WR ZRUN LQ RUGHU WR
TXDOLI\IRUUHWLUHPHQWEHQHILWVDQGWKDWLWZDVUHYRNLQJWKH
EHQHILWVKHKDGVWDUWHGWRUHFHLYHXQGHUWKHROG&%$6DQIRUG
UHIXVHGWRUHWXUQWRZRUNDQGLQVWHDGVXHG+DUYDUG
  7KH GLVWULFW FRXUW VHQW WKH FDVH EDFN WR WKH %RDUG IRU D
GHWHUPLQDWLRQ RI ZKHWKHU 6DQIRUG ZDV LQ IDFW TXDOLILHG RQ
sXO\IRUHDUO\UHWLUHPHQWDQGLQWKHLQWHULPRUGHUHG
+DUYDUG WR UHLQVWDWH 6DQIRUGjV EHQHILWV  +DUYDUG DSSHDOV
DUJXLQJWKDWWKHGLVWULFWFRXUWHUUHGE\IDLOLQJWRDFFRUG
GHIHUHQWLDOUHYLHZWR+DUYDUGjVGHFLVLRQUHJDUGLQJWKHVWDWXV
RI 6DQIRUGjV UHWLUHPHQW EHQHILWV  LQFRUUHFWO\ FRQFOXGHG
WKDW +DUYDUG YLRODWHG (5,6$jV QRWLFH UHTXLUHPHQWV DQG
HUUHGE\RUGHULQJ+DUYDUGWRUHLQVWDWH6DQIRUGjVEHQHILWV
SHQGLQJDGHFLVLRQE\WKH%RDUG)RUWKHUHDVRQVVHWIRUWK
EHORZZH$)),50WKHMXGJPHQWRIWKHGLVWULFWFRXUW
    6DQIRUGHWDOY+DUYDUG                     1R       1R                     6DQIRUGHWDOY+DUYDUG         
      ,QGXVWULHVHWDO                                                                                        ,QGXVWULHVHWDO

HOLJLELOLW\ IRU HDUO\ UHWLUHPHQW LQ  EH UHPDQGHG WR WKH                         ,%$&.*5281'
%RDUG IRU D KHDULQJ DQG GHFLVLRQ  6HFRQG LW RUGHUHG WKDW
+DUYDUGUHLQVWDWHWKHEHQHILWVWR6DQIRUGWKDWZHUHLPSURSHUO\          6DQIRUGZRUNHGIRU+DUYDUGDQGLWVSUHGHFHVVRUWKH+D\HV
UHVFLQGHG LQ YLRODWLRQ RI WKH SODQ SURFHGXUHV  +DUYDUG        $OELRQ &RPSDQ\ DW WKH FRPSDQ\jV SODQW LQ sDFNVRQ
FRQWHQGVWKDWWKHGLVWULFWFRXUWGLGQRWKDYHWKHDXWKRULW\WR         0LFKLJDQIURP6HSWHPEHUXQWLOKHUHWLUHGRQsXO\
RUGHUWKHUHLQVWDWHPHQWRI6DQIRUGjVEHQHILWV                         7KH&%$WKHQLQHIIHFWEHWZHHQ+DUYDUGDQG/RFDO
                                                                        RI WKH 8$: ZDV VHW WR H[SLUH RQ sXO\    $OO
  +DUYDUGFLWHV$QGHUVRQY0UV*ULVVRQjV6DODGjV,QF1R            HOLJLEOHHPSOR\HHVZKRUHWLUHGEHIRUHWKDWGDWHZHUHHQWLWOHG
  :/  WK &LU sXQH                 WRHPSOR\HUSDLGKHDOWKLQVXUDQFHFRYHUDJHIRUWKHPVHOYHV
XQSXEOLVKHGWDEOHGHFLVLRQWRVXSSRUWLWVSRVLWLRQ7KRXJK         DQG WKHLU GHSHQGHQWV IRU WKH UHPDLQGHU RI WKHLU OLYHV
XQSXEOLVKHG $QGHUVRQ FRQYHQLHQWO\ VXPPDUL]HV VHYHUDO              (PSOR\HHV ZKR UHWLUHG DIWHU WKDW GDWH ZHUH QRW HQWLWOHG WR
FDVHVLQQRWLQJWKDWmWKH6L[WK&LUFXLWKDVFRQVLVWHQWO\KHOG          OLIHWLPHKHDOWKLQVXUDQFHFRYHUDJHIRUWKHLUGHSHQGHQWV
WKDWYLRODWLRQVRIWKHSURFHGXUDOVHFWLRQVRI(5,6$GRQRW
JLYH ULVH WR FODLPV IRU VXEVWDQWLYH GDPDJHVl  ,G DW       6DQIRUGDSSOLHGIRUmWKLUW\DQGRXWlHDUO\UHWLUHPHQWRQsXO\
$QGHUVRQ LV RI QR KHOS WR +DUYDUG KRZHYHU EHFDXVH WKH       LQRUGHUWRVHFXUHWKHKHDOWKLQVXUDQFHEHQHILWVIRU
GLVWULFW FRXUW LQ WKH SUHVHQW FDVH GLG QRW GHWHUPLQH WKDW     KLVZLIH&RPHOOD6DQIRUG(PSOR\HHVZKRZHUHOHVVWKDQ
6DQIRUGjVFODLPWREHQHILWVLVEDVHGRQ+DUYDUGjVIDLOXUHWR           \HDUV ROG KDG WR KDYH DFFXPXODWHG  \HDUV RI mFUHGLWHG
FRPSO\ ZLWK (5,6$jV QRWLFH UHTXLUHPHQWV  ,QVWHDG LW           VHUYLFHl UDWKHU WKDQ  \HDUV RI FKURQRORJLFDO VHUYLFH LQ
GHWHUPLQHG WKDW 6DQIRUGjV FODLP LV EDVHG RQ WKH %RDUGjV        RUGHU WR TXDOLI\ IRU HDUO\ UHWLUHPHQW  6XFK VHUYLFH FUHGLWV
LQLWLDODSSURYDORIKLVHDUO\UHWLUHPHQWXQGHURIWKHSODQ      ZHUH EDVHG LQ SDUW RQ ZKHWKHU ZRUN ZDV SHUIRUPHG DV DQ
DQG WKH RUGHU WR UHLQVWDWH 6DQIRUGjV EHQHILWV LV LQ IDFW      KRXUO\RUDVDODULHGHPSOR\HH%HFDXVH6DQIRUGZDVRQO\
SUHPLVHGRQWKHGLVWULFWFRXUWjVFRQFOXVLRQWKDWWKH%RDUGjV           \HDUV ROG LQ  KH ZDV UHTXLUHG WR KDYH  \HDUV RI
GHFLVLRQ PDGH LQ sXO\ RI  KDV QHYHU EHHQ SURSHUO\         FUHGLWHGVHUYLFH
UHYRNHG  7KXV +DUYDUGjV SURFHGXUDO YLRODWLRQ LV QRW WKH
UHDVRQWKDW6DQIRUGjVEHQHILWVFRPPHQFHGEXWLVWKHUHDVRQ              %DUEDUD 0F.LQQRQ +DUYDUGjV 0DQDJHU RI +XPDQ
WKDW WKH\ VKRXOG FRQWLQXH XQWLO D GHFLVLRQ UHJDUGLQJ WKH       5HVRXUFHV IRU 6DODULHG $GPLQLVWUDWLRQ DQG $XGUH\ 9DQ
SRWHQWLDOUHYRFDWLRQRI6DQIRUGjVEHQHILWVKDVEHHQSURSHUO\           %XUHQWKH%HQHILWV$FFRXQW6XSHUYLVRUZHUHUHVSRQVLEOHIRU
GHWHUPLQHGLQFRPSOLDQFHZLWKWKHSODQjVSURYLVLRQV                   SURFHVVLQJ UHWLUHPHQW DSSOLFDWLRQV DW WKH sDFNVRQ SODQW
                                                                       +DUYDUG FODLPV WKDW  SODQW HPSOR\HHV DSSOLHG WR UHWLUH
   $GGLWLRQDOO\+DUYDUGDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGLQ       EHIRUHWKHFKDQJHRYHUGHDGOLQHRQsXO\DQXQXVXDOO\
GLVPLVVLQJ LWV FRXQWHUFODLP IRU WKH UHLPEXUVHPHQW RI WKH        KLJK QXPEHU RI DSSOLFDWLRQV WR SURFHVV DW RQH WLPH
EHQHILWV SDLG WR 6DQIRUG EHWZHHQ 1RYHPEHU RI  DQG          0F.LQQRQ DQG 9DQ %XUHQ UHYLHZHG 6DQIRUGjV HDUO\
6HSWHPEHURIWKLVEHLQJWKHWLPHEHWZHHQ+DUYDUGjV               UHWLUHPHQW DSSOLFDWLRQ DQG DSSURYHG LW DV GLG WKH %RDUG
QRWLFHRIUHYRFDWLRQRIEHQHILWVWR6DQIRUGDQGWKHWLPHWKDW          $FFRUGLQJO\ 6DQIRUG UHWLUHG RQ sXO\   EHJDQ
LWDFWXDOO\VWRSSHGGLVEXUVLQJSD\PHQWVWRKLP:HILQGQR            UHFHLYLQJSHUPRQWKLQSHQVLRQEHQHILWVDQGUHFHLYHG
HUURU LQ WKH GLVWULFW FRXUWjV GLVPLVVDO RI +DUYDUGjV            KHDOWKLQVXUDQFHFRYHUDJHIRUKLPVHOIDQGKLVZLIH
FRXQWHUFODLP  7KH GLVWULFW FRXUW IRXQG WKDW WKH %RDUGjV
RULJLQDOGHFLVLRQWKDW6DQIRUGZDVHOLJLEOHIRUEHQHILWVLVVWLOO        +DUYDUG FRQGXFWHG DQ DXGLW RI LWV SHUVRQQHO ILOHV
LQHIIHFWDQGZDVQRWSURSHUO\UHYRNHGLQDFFRUGDQFHZLWKWKH          DSSUR[LPDWHO\ IRXU PRQWKV DIWHU 6DQIRUG UHWLUHG  ,W
     6DQIRUGHWDOY+DUYDUG                    1R       1R                     6DQIRUGHWDOY+DUYDUG       
      ,QGXVWULHVHWDO                                                                                       ,QGXVWULHVHWDO

GHWHUPLQHGWKDW0F.LQQRQDQG9DQ%XUHQKDGPLVWDNHQO\                 SURFHGXUHDYDLODEOHWRKLPDQGWKDW6DQIRUGZDVWKHUHIRUH
FRQFOXGHG WKDW 6DQIRUG ZDV HOLJLEOH IRU HDUO\ UHWLUHPHQW      GHQLHG D UHDVRQDEOH RSSRUWXQLW\ WR REWDLQ D mIXOO DQG IDLU
$FFRUGLQJWR+DUYDUGjVFDOFXODWLRQ6DQIRUGKDGDFFXPXODWHG           UHYLHZlDVSURYLGHGE\86&
RQO\  \HDUV RI FUHGLWHG VHUYLFH  +DUYDUG DVVHUWV WKDW
6DQIRUG VKRXOG QRW KDYH UHFHLYHG D IXOO \HDU RI FUHGLWHG       +DUYDUGFRQWHQGVWKDWLWSURYLGHG6DQIRUGZLWKVXIILFLHQW
VHUYLFHDVDQKRXUO\HPSOR\HHLQDQG           LQIRUPDWLRQ IRU KLP WR XQGHUVWDQG WKH UHDVRQV EHKLQG LWV
EHFDXVHKHGLGQRWZRUNDWOHDVWKRXUVLQWKRVH\HDUVDV        UHYRFDWLRQRIKLVEHQHILWV)XUWKHUPRUHLWFODLPVWKDWEHFDXVH
UHTXLUHGE\WKHsDFNVRQ3ODQW+RXUO\5DWH3HQVLRQ3ODQWKH           6DQIRUGKDGDWWHQGHGDPHHWLQJZLWK)HUUHHDQG0F.LQQRQ
SODQ$VVXFK+DUYDUGFRQWHQGVWKDW6DQIRUGZRXOGQHYHU             KDGUHFHLYHGDIROORZXSWHOHSKRQHFDOODQGZDVVHQWDOHWWHU
KDYH EHHQ HOLJLEOH WR UHFHLYH WKH HDUO\ UHWLUHPHQW EHQHILWV   RXWOLQLQJ+DUYDUGjVSRVLWLRQ+DUYDUGVKRXOGEHIRXQGWRKDYH
XQGHUWKHROG&%$6DQIRUGFRQWHVWV+DUYDUGjVFDOFXODWLRQ            VXEVWDQWLDOO\ FRPSOLHG ZLWK WKH (5,6$ UHTXLUHPHQWV  6HH
RIKLVFUHGLWHGVHUYLFH,QSDUWLFXODUKHFKDOOHQJHV+DUYDUGjV      .HQWY8QLRQRI2PDKD0XW/LIH,QV&R)G
FDOFXODWLRQ RI KLV VHUYLFH LQ  WKH \HDU LQ ZKLFK KH    WK&LUDGRSWLQJWKHUXOHLQRXUFLUFXLWWKDWSODQ
WUDQVIHUUHGIURPDVDODULHGHPSOR\HHWRDQKRXUO\HPSOR\HH           DGPLQLVWUDWRUVQHHGRQO\VXEVWDQWLDOO\FRPSO\ZLWK(5,6$
DQG  WKH \HDU WKDW KH ZDV RQ ZRUNHUVj FRPSHQVDWLRQ      QRWLFHUHTXLUHPHQWV
OHDYHIRUDVXEVWDQWLDOSRUWLRQRIWKHWLPH
                                                                         :H ILQG QR HUURU LQ WKH GLVWULFW FRXUWjV FRQFOXVLRQ WKDW
   7KHUHFRUGDOVRUHYHDOVWKDW0HO:HVWDQHPSOR\HHDWWKH          +DUYDUG GLG QRW DGHTXDWHO\ FRPSO\ ZLWK (5,6$jV QRWLFH
sDFNVRQSODQWILOHGDXQLRQJULHYDQFHFKDOOHQJLQJ+DUYDUGjV          UHTXLUHPHQWV$OWKRXJKWKHDFWLRQVWDNHQE\+DUYDUGZHUH
DSSURYDO RI 6DQIRUGjV HDUO\ UHWLUHPHQW 7KLV JULHYDQFH          VXIILFLHQW WR VSHFLILFDOO\ H[SODLQ ZK\ LW ZDV UHVFLQGLQJ
SURPSWHGDPHHWLQJDWWKHsDFNVRQSODQWLQODWH1RYHPEHURI           6DQIRUGjVEHQHILWVWKHVHDFWLRQVGLGQRWLQFOXGHLQIRUPDWLRQ
WRGLVFXVV6DQIRUGjVUHWLUHPHQWDQGEHQHILWVVWDWXV,Q         DGYLVLQJ6DQIRUGRIWKHVWHSVKHZDVUHTXLUHGWRWDNHLQRUGHU
DWWHQGDQFH DW WKLV PHHWLQJ ZHUH SODQ UHSUHVHQWDWLYHV IURP      WRREWDLQDIXOODQGIDLUUHYLHZRI+DUYDUGjVDGYHUVHGHFLVLRQ
+DUYDUGjV FRUSRUDWH KHDGTXDUWHUV LQ 7DPSD )ORULGD              1RULVWKLVDQDO\VLVDOWHUHGE\WKHIDFWWKDW6DQIRUGQRWLILHG
LQWHUQDWLRQDO XQLRQ UHSUHVHQWDWLYHV WKH ORFDO EDUJDLQLQJ        +DUYDUGWKDWKHZDVFRQVXOWLQJDODZ\HUUHJDUGLQJKLVEHQHILW
FRPPLWWHHDQGDPDMRULW\LIQRWDOORIWKH%RDUGPHPEHUV            VWDWXV
7KH7DPSDRIILFHKDGDOUHDG\VHQWDQRIILFLDOPHPRUDQGXP
WR0F.LQQRQDQG/HH)HUUHHWKHSODQWPDQDJHULQIRUPLQJ              ' 7KH GLVWULFW FRXUW GLG QRW HUU LQ RUGHULQJ
WKHPWKDWWKH\VKRXOGDGYLVH6DQIRUGWKDWWKHUHZDVDQHUURU             +DUYDUGWRUHLQVWDWH6DQIRUGjVEHQHILWVSHQGLQJ
LQFDOFXODWLQJKLVUHWLUHPHQWHOLJLELOLW\DQGWKDW+DUYDUGZDV           DGHFLVLRQRQWKHLVVXHRI6DQIRUGjVUHWLUHPHQW
WKHUHIRUHUHVFLQGLQJKLVEHQHILWV                                       HOLJLELOLW\E\WKH%RDUG

  2Q1RYHPEHU0F.LQQRQDQG)HUUHHPHWZLWK                     +DUYDUG QH[W FRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG E\
6DQIRUG WR LQIRUP KLP RI WKH SHUVRQQHO GHSDUWPHQWjV            UHPHG\LQJDSURFHGXUDOYLRODWLRQZLWKDVXEVWDQWLYHUHPHG\
FRPSXWLQJPLVWDNH+DUYDUGDOVRWROG6DQIRUGWKDWKHZRXOG           QDPHO\WKHUHLQVWDWHPHQWRIEHQHILWVWR6DQIRUG7KHGLVWULFW
QRORQJHUUHFHLYHSHQVLRQEHQHILWVXQGHUWKHSODQDQGWKDWKH         FRXUWFRQFOXGHGWKDWWKH%RDUGjVLQLWLDOGHFLVLRQWKDW6DQIRUG
ZRXOGQHHGWRZRUNDQDGGLWLRQDOKRXUVWRTXDOLI\IRU             ZDVHQWLWOHGWREHQHILWVZDVGXO\SURFHVVHGXQGHURIWKH
HDUO\ UHWLUHPHQW  6DQIRUG ZDV LQIRUPHG KRZHYHU WKDW KH     SODQDQGKDVQHYHUEHHQSURSHUO\UHYRNHG7RUHPHG\WKLV
ZRXOGEHFUHGLWHGZLWKSHQVLRQFUHGLWDQGVHQLRULW\IRUWKH           VLWXDWLRQWKHFRXUWILUVWRUGHUHGWKDWWKHLVVXHRI6DQIRUGjV
    6DQIRUGHWDOY+DUYDUG                      1R       1R                     6DQIRUGHWDOY+DUYDUG        
      ,QGXVWULHVHWDO                                                                                         ,QGXVWULHVHWDO

SUHSDUHG WR DQVZHU TXHVWLRQV DERXW KRZ LWV SHQVLRQ SODQ        HQWLUHWLPHSHULRGEHWZHHQKLVPLVWDNHQUHWLUHPHQWDQGKLV
ZKLFKLVJRYHUQHGE\(5,6$RSHUDWHV                                 UHWXUQWRZRUN DQGWKDWKHZRXOGEHFRPSHQVDWHGIRUDQ\
                                                                        ZDJH ORVV KH PLJKW KDYH LQFXUUHG DV D UHVXOW RI +DUYDUGjV
   :HFRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWHUULQRUGHULQJ          HUURU)LQDOO\+DUYDUGWROG6DQIRUGWKDWKHZRXOGEHHOLJLEOH
WKDW6DQIRUGjVFDVHEHUHPDQGHGWRWKH%RDUGIRUDGHFLVLRQ             IRUSHQVLRQEHQHILWVRQFHKHKDGFRPSOHWHGHQRXJKZRUNWR
RQ ZKHWKHU 6DQIRUG LV LQGHHG HOLJLEOH IRU WKH EHQHILWV          TXDOLI\ IRU HDUO\ UHWLUHPHQW EXW WKDW KLV ZLIH ZRXOG QRW
SURYLGHG E\ WKH H[SLUHG &%$  %RWK SDUWLHV KDYH UDLVHG         UHFHLYH GHSHQGHQW KHDOWK LQVXUDQFH FRYHUDJH EHFDXVH WKH
DUJXPHQWVUHJDUGLQJWKLVTXHVWLRQWKURXJKRXWWKHOLWLJDWLRQLQ          GHDGOLQH IRU WKH ROG &%$ KDG SDVVHG  6DQIRUG UHFHLYHG
IHGHUDOFRXUW:HKDYHH[SUHVVO\UHIUDLQHGKRZHYHUIURP              DGGLWLRQDOQRWLFHVRI+DUYDUGjVSRVLWLRQWKURXJKDIROORZXS
H[DPLQLQJ WKH PHULWV RI WKH GLVSXWH FRQFHUQLQJ 6DQIRUGjV         WHOHSKRQH FDOO RQ 'HFHPEHU   DQG LQ ZULWLQJ RQ
HOLJLELOLW\IRUHDUO\UHWLUHPHQW7KHGLVWULFWFRXUWGLGVRDV         'HFHPEHU+DUYDUGQHYHUWKHOHVVFRQWLQXHGWRSD\
ZHOOEHFDXVHLWGHWHUPLQHGWKDWmWKHGLVWULFWFRXUWVKRXOGQRW         6DQIRUGKLVPRQWKO\SHQVLRQEHQHILWXQWLO6HSWHPEHURI
FRQVLGHUHYLGHQFHRXWVLGHWKHDGPLQLVWUDWLYHUHFRUGIRUWKH
ILUVW WLPH EXW VKRXOG DOORZ WKH SODQ ILGXFLDU\ WR GR VR LQ      6DQIRUGUHIXVHGWRUHWXUQWRZRUN,QVWHDGKHDQGKLVZLIH
NHHSLQJ ZLWK (5,6$jV SROLF\ >WKDW@ WKH ILGXFLDULHV DUH           ILOHG VXLW DJDLQVW +DUYDUG RQ 'HFHPEHU   LQ D
SULPDULO\UHVSRQVLEOHIRUFODLPVSURFHVVLQJl$VVXFKZH              0LFKLJDQ VWDWH FRXUW VHHNLQJ WKH UHLQVWDWHPHQW RI KLV
VWUHVVWKDWWKHOLWLJDWLRQLQIHGHUDOFRXUWKDVQRWIRUHFORVHGWKH      EHQHILWV  +DUYDUG UHPRYHG WKH FDVH WR WKH 8QLWHG 6WDWHV
SDUWLHVIURPUDLVLQJZKDWHYHUDUJXPHQWVWKH\ZLVKUHJDUGLQJ             'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQEDVHGRQ
6DQIRUGjVHOLJLELOLW\IRUEHQHILWVRQUHPDQGWRWKH%RDUG              SUHHPSWLRQXQGHUWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\
                                                                        $FW (5,6$  86&   DQG ILOHG D
& 7KH GLVWULFW FRXUW GLG QRW HUU LQ ILQGLQJ WKDW               FRXQWHUFODLPVHHNLQJUHLPEXUVHPHQWRIWKHSHQVLRQEHQHILWV
   +DUYDUGYLRODWHG(5,6$jVQRWLFHUHTXLUHPHQWV                         HUURQHRXVO\ SDLG  ,Q 0D\ RI  +DUYDUG ILOHG LWV ILUVW
                                                                        PRWLRQ IRU VXPPDU\ MXGJPHQW ZKLFK WKH GLVWULFW FRXUW
  +DUYDUGQH[WFKDOOHQJHVWKHGLVWULFWFRXUWjVFRQFOXVLRQWKDW          VXPPDULO\GHQLHG EDVHGRQWKHQHHGIRUIXUWKHUGLVFRYHU\
WKH FRPSDQ\ YLRODWHG (5,6$ UHJXODWLRQV E\ QRW SURYLGLQJ          +DUYDUGWKHQILOHGDVHFRQGPRWLRQIRUVXPPDU\MXGJPHQWLQ
6DQIRUGZLWKVXIILFLHQWQRWLFHEHIRUHUHYRNLQJKLVEHQHILWV            0DUFK RI   7KH GLVWULFW FRXUW GHQLHG WKLV VXPPDU\
(5,6$PDQGDWHVWKDWHYHU\HPSOR\HHEHQHILWSODQVKDOO                  MXGJPHQWPRWLRQDVZHOO,WGLGVRZLWKRXWSUHMXGLFHEHFDXVH
                                                                        RISHQGLQJEDQNUXSWF\SURFHHGLQJVDJDLQVW+DUYDUG
   SURYLGHDGHTXDWHQRWLFHLQZULWLQJWRDQ\SDUWLFLSDQW
        RU EHQHILFLDU\ ZKRVH FODLP IRU EHQHILWV XQGHU WKH           6DQIRUGjV FDVH ZDV WKHQ WUDQVIHUUHG WR D GLIIHUHQW MXGJH
        SODQ KDV EHHQ GHQLHG VHWWLQJ IRUWK WKH VSHFLILF         ZLWKLQWKHGLVWULFWDQGZDVUHRSHQHGLQDIWHUDSSURSULDWH
        UHDVRQV IRU VXFK GHQLDO ZULWWHQ LQ D PDQQHU             SURFHHGLQJVLQWKHEDQNUXSWF\FRXUW+DUYDUGILOHGDUHQHZHG
        FDOFXODWHGWREHXQGHUVWRRGE\WKHSDUWLFLSDQWDQG             PRWLRQIRUVXPPDU\MXGJPHQW7KHGLVWULFWFRXUWFRQVWUXHG
   DIIRUG D UHDVRQDEOH RSSRUWXQLW\ WR DQ\ SDUWLFLSDQW          WKLV PRWLRQ DV D PRWLRQ IRU HQWU\ RI MXGJPHQW DIILUPLQJ
        ZKRVHFODLPIRUEHQHILWVKDVEHHQGHQLHGIRUDIXOO             +DUYDUGjVGHFLVLRQWRGHQ\6DQIRUGjVFODLPIRUEHQHILWV$V
        DQGIDLUUHYLHZE\WKHDSSURSULDWHQDPHGILGXFLDU\              VXFK WKH GLVWULFW FRXUW FRQFOXGHG WKDW D TXHVWLRQ RI IDFW
        RIWKHGHFLVLRQGHQ\LQJWKHFODLP                              UHPDLQHGDVWRZKHWKHU6DQIRUGZDVHQWLWOHGWRWKHEHQHILWV
86&7KHGLVWULFWFRXUWFRQFOXGHGWKDW+DUYDUG            ,WWKHUHIRUHGHQLHG+DUYDUGjVPRWLRQRQ$XJXVW
IDLOHGWRSURYLGH6DQIRUGZLWKDGHTXDWHQRWLFHRIWKHDSSHDOV
     6DQIRUGHWDOY+DUYDUG                      1R       1R                    6DQIRUGHWDOY+DUYDUG       
      ,QGXVWULHVHWDO                                                                                        ,QGXVWULHVHWDO

   $IWHU KHDULQJ WHVWLPRQ\ IURP WKH SDUWLHV RQ 2FWREHU       8OWUDPDU (QHUJ\ /WG  )G   G &LU 
DQGsDQXDU\WKHGLVWULFWFRXUWGHWHUPLQHGWKDW           KROGLQJWKDWDIHGHUDOFRXUWUHYLHZVGHQRYRDGHFLVLRQWR
+DUYDUGKDGUHVFLQGHG6DQIRUGjVEHQHILWVLQFRQWUDYHQWLRQRI            UHYRNH EHQHILWV ZKHQ WKDW GHFLVLRQ LV PDGH E\ DQ
ERWK(5,6$UHTXLUHPHQWVDQGWKHSODQSURFHGXUHVDQGWKDW               XQDXWKRUL]HGERG\DQGE\WKH)LUVW&LUFXLW LQ5RGULJXH]
+DUYDUGVKRXOGWKHUHIRUHUHLQVWDWH6DQIRUGjVEHQHILWV*LYHQ           $EUHXY&KDVH0DQKDWWDQ%DQN)GVW&LU
WKH DPELJXLWLHV LQ WKH DGPLQLVWUDWLYH UHFRUG UHJDUGLQJ             VDPH  7KH ORJLF EHKLQG WKHVH GHFLVLRQV LV WKDW
6DQIRUGjVHOLJLELOLW\IRUHDUO\UHWLUHPHQWKRZHYHUWKHGLVWULFW       GHIHUHQWLDO UHYLHZ XQGHU WKH mDUELWUDU\ DQG FDSULFLRXVl
FRXUWUHIUDLQHGIURPUHQGHULQJDIDFWXDOGHWHUPLQDWLRQRQWKLV          VWDQGDUGLVPHULWHGIRUGHFLVLRQVUHJDUGLQJEHQHILWVZKHQWKH\
LVVXH  ,W LQVWHDG GLVPLVVHG +DUYDUGjV FRXQWHUFODLP DQG          DUH PDGH LQ FRPSOLDQFH ZLWK SODQ SURFHGXUHV  :KHQ DQ
UHPDQGHG6DQIRUGjVEHQHILWVFODLPWRWKH%RDUG                        XQDXWKRUL]HGERG\WKDWGRHVQRWKDYHILGXFLDU\GLVFUHWLRQWR
                                                                        GHWHUPLQH EHQHILWV HOLJLELOLW\ UHQGHUV VXFK D GHFLVLRQ
  +DUYDUGWLPHO\DSSHDOHGWKHGLVWULFWFRXUWjVMXGJPHQWDQG             KRZHYHU WKLV GHIHUHQWLDO UHYLHZ LV QRW ZDUUDQWHG  6HH
RUGHU,WDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGE\UHYLHZLQJWKH        6KDUNH\)GDW5RGULJXH]$EUHX)GDW
GHFLVLRQ WR UHVFLQG 6DQIRUGjV EHQHILWV GH QRYR UDWKHU WKDQ
GHWHUPLQLQJ ZKHWKHU WKDW GHFLVLRQ ZDV DUELWUDU\ DQG                 +DUYDUG UHVSRQGV E\ FRQWHQGLQJ WKDW WKH RQO\ LVVXHV
FDSULFLRXV XQGHU D PRUH GHIHUHQWLDO VWDQGDUG RI UHYLHZ          SURSHUO\EHIRUHWKHGLVWULFWFRXUWZHUHZKHWKHU6DQIRUGZDV
)XUWKHUPRUH +DUYDUG FODLPV WKDW VHYHUDO RI WKH GLVWULFW         LQ IDFW HOLJLEOH IRU HDUO\ UHWLUHPHQW LQ sXO\ RI  DQG
FRXUWjVIDFWXDOILQGLQJVDUHFOHDUO\HUURQHRXV                       ZKHWKHU +DUYDUGjV GHFLVLRQ WR UHVFLQG KLV EHQHILWV ZDV
                                                                        DUELWUDU\DQGFDSULFLRXVLVVXHVWKDWZHUHVHWIRUWKLQWKHMRLQW
                        ,,$1$/<6,6                                   SUHWULDO RUGHU  $FFRUGLQJO\ +DUYDUG PDLQWDLQV WKDW WKH
                                                                        GLVWULFWFRXUWEDVHGLWVGHWHUPLQDWLRQRQDQLVVXHWKDWZDVQRW
$ 6WDQGDUGRIUHYLHZ                                                   SURSHUO\ EHIRUH LW  +DUYDUG FLWHV 0%, 0RWRU &R ,QF Y
                                                                        /RWXV(DVW,QF)GWK&LUWRVXSSRUWLWV
  :HZLOOQRWVHWDVLGHWKHGLVWULFWFRXUWjVILQGLQJVRIIDFW           SRVLWLRQ  ,Q 0%, WKLV FRXUW YDFDWHG WKH MXGJPHQW RI WKH
XQOHVV ZH FRQFOXGH WKDW WKH\ DUH FOHDUO\ HUURQHRXV  6HH       GLVWULFWFRXUWEHFDXVHLWVGHFLVLRQZDVEDVHGRQWKHWKHRU\RI
'DYLHVY&HQWHQQLDO/LIH,QV&R)GWK              DQ LPSOLHG ZDUUDQW\ RI PHUFKDQWDELOLW\ WKDW KDG QRW EHHQ
&LU   $ GLVWULFW FRXUWjV IDFWXDO ILQGLQJV DUH FOHDUO\   UDLVHGE\HLWKHUSDUW\ZKHUHDVWKHHQWLUHEHQFKWULDOLQYROYHG
HUURQHRXVLIEDVHGRQWKHHQWLUHUHFRUGZHDUHmOHIWZLWKWKH         WKH LVVXH RI ZKHWKHU WKH GHIHQGDQW KDG PLVUHSUHVHQWHG WKH
GHILQLWH DQG ILUP FRQYLFWLRQ WKDW D PLVWDNH KDV EHHQ            FRQGLWLRQRIFHUWDLQFDUVWKDWWKHGHIHQGDQWKDGVROGWRWKH
FRPPLWWHGl%DUWOLQJY)UXHKDXI&RUS)G              SODLQWLII6HHLGDW
WK &LU  FLWDWLRQV DQG LQWHUQDO TXRWDWLRQ PDUNV
RPLWWHG:HUHYLHZWKHGLVWULFWFRXUWjVFRQFOXVLRQVRIODZ              +DUYDUGKDVQRFRPSDUDEOHEDVLVWRFU\IRXO7KHGLVWULFW
GH QRYR  6HH 'DYLHV  )G DW   ,Q SDUWLFXODU ZH   FRXUW GHWHUPLQHG WKDW +DUYDUG IDLOHG WR FRPSO\ ZLWK WKH
GHWHUPLQH GH QRYR ZKLFK VWDQGDUG RI UHYLHZ VKRXOG EH            SURFHGXUHVVHWIRUWKLQRIWKHSODQLQUHYRNLQJ6DQIRUGjV
DSSOLHG ZKHQ UHYLHZLQJ D SODQ DGPLQLVWUDWRUjV GHFLVLRQ            EHQHILWV D GHWHUPLQDWLRQ PDGH DIWHU WKH FRXUW FRQGXFWHG D
JRYHUQHGE\(5,6$6HH:KLVPDQY5REELQV)G               EHQFKWULDORQWKHLVVXHRIZKHWKHU6DQIRUGZDVHOLJLEOHIRU
WK&LU                                                   HDUO\ UHWLUHPHQW  )XUWKHUPRUH +DUYDUG FDQQRW UHPRYH
                                                                        6DQIRUGjV FDVH WR IHGHUDO FRXUW RQ WKH EDVLV RI (5,6$
                                                                        SUHHPSWLRQ DQG WKHQ FODLP LQ JRRG IDLWK WKDW LW ZDV QRW
    6DQIRUGHWDOY+DUYDUG                    1R       1R                     6DQIRUGHWDOY+DUYDUG           
      ,QGXVWULHVHWDO                                                                                       ,QGXVWULHVHWDO

   )HUUHHFODLPVWKDWKH0F.LQQRQ6DQIRUGDQGWKHXQLRQ            % 7KH GLVWULFW FRXUW GLG QRW HUU LQ UHYLHZLQJ
SUHVLGHQWPHWWRGLVFXVV+DUYDUGjVUHYRFDWLRQRI6DQIRUGjV              +DUYDUGjVGHFLVLRQGHQRYR
EHQHILWV  7KLV PHHWLQJ RFFXUUHG RQ 1RYHPEHU  
6KRUWO\WKHUHDIWHU)HUUHHWHVWLILHGWKDWDPHHWLQJZDVKHOGRQ         7KLVFDVHKLQJHVXSRQWKHGLVWULFWFRXUWjVGHWHUPLQDWLRQWKDW
WKH XQLRQ JULHYDQFH ILOHG E\ RQH RI 6DQIRUGjV FRZRUNHUV      +DUYDUGUHVFLQGHG6DQIRUGjVEHQHILWVLQFRQWUDYHQWLRQRIERWK
$SSUR[LPDWHO\SHRSOHZHUHSUHVHQWDWWKDWPHHWLQJRQWKH           (5,6$UHTXLUHPHQWVDQGWKHSODQSURFHGXUHV7KHSHQVLRQ
XQLRQJULHYDQFHLQFOXGLQJPRVWLIQRWDOORIWKHPHPEHUVRI          SODQLQTXHVWLRQLVRQHWKDWJUDQWVGLVFUHWLRQDU\DXWKRULW\WR
WKH %RDUG  )HUUHH PDLQWDLQHG WKDW +DUYDUG KDG DOUHDG\        WKH%RDUGWRGHWHUPLQHDQHPSOR\HHjVHOLJLELOLW\IRUEHQHILWV
GHFLGHG WR UHVFLQG 6DQIRUGjV EHQHILWV DQG WKDW WKRVH LQ      6HFWLRQRIWKHSODQSURYLGHVLQSHUWLQHQWSDUWDVIROORZV
DWWHQGDQFHGLVFXVVHGZKDWVWHSVVKRXOGEHWDNHQWRKDQGOHWKH
VLWXDWLRQ  6DQIRUG ZDV XQDZDUH RI WKH XQLRQ JULHYDQFH            7KH (PSOR\HU VKDOO EH WKH 3ODQ $GPLQLVWUDWRU IRU
PHHWLQJ)LQDOO\)HUUHHDGPLWWHGWKDWWKHPHHWLQJZDVKHOG            SXUSRVHVRI>(5,6$@EXWWKHUHVSRQVLELOLW\IRUFDUU\LQJ
LQOLHXRIWKHSURFHGXUHVIRUDSSHDOLQJEHQHILWGHFLVLRQVDVVHW        RXW WKH SURYLVLRQV WKHUHRI VKDOO EH YHVWHG LQ D FHQWUDO
IRUWKLQWKHSODQ+HIXUWKHUWHVWLILHGWKDWKHKDGVXJJHVWHGDW       %RDUG RI $GPLQLVWUDWLRQ KHUHLQDIWHU UHIHUUHG WR DV WKH
WKH PHHWLQJ WKDW +DUYDUG IROORZ WKH DSSHDO SURFHGXUHV VHW       %RDUGFRPSRVHGRIVL[PHPEHUV7KUHHRIWKHPHPEHUV
IRUWK LQ   RI WKH SODQ EXW WKDW WKRVH LQ DWWHQGDQFH       VKDOO EH DSSRLQWHG E\ WKH 8QLRQ DQG WKUHH VKDOO EH
GLVUHJDUGHGKLVVXJJHVWLRQ                                           DSSRLQWHGE\WKH(PSOR\HU(DFKPHPEHURIWKH%RDUG
                                                                        VKDOOKDYHDQDOWHUQDWH,QWKHHYHQWDPHPEHULVDEVHQW
  *LYHQWKHFRPSOLFDWHGFKDLQRIHYHQWVDQGWKHFRQIXVLRQDV            IURPDPHHWLQJRIWKH%RDUGKLVDOWHUQDWHPD\DWWHQGDQG
WR WKH SURSHU SODQ SURFHGXUHV ZH DUH QRW OHIW ZLWK WKH       ZKHQ LQ DWWHQGDQFH VKDOO H[HUFLVH WKH GXWLHV RI WKH
mGHILQLWH DQG ILUP FRQYLFWLRQ WKDW D PLVWDNH KDV EHHQ           PHPEHU(LWKHUWKH(PSOR\HURUWKH8QLRQDWDQ\WLPH
FRPPLWWHGlE\WKHGLVWULFWFRXUW%DUWOLQJY)UXHKDXI&RUS          PD\UHPRYHDPHPEHURUDOWHUQDWHDSSRLQWHGE\LWDQG
)GWK&LUVHWWLQJIRUWKWKHWHVWIRU          PD\DSSRLQWDPHPEHURUDOWHUQDWHWRILOODQ\YDFDQF\
ZKHWKHU D IDFWXDO ILQGLQJ E\ WKH GLVWULFW FRXUW LV FOHDUO\     DPRQJPHPEHUVRUDOWHUQDWHG>VLF@DSSRLQWHGE\LW
HUURQHRXV  :H WKHUHIRUH FRQFOXGH WKDW WKH GLVWULFW FRXUW        1R SHUVRQ VKDOO DFW DV D PHPEHU RI WKH %RDUG RI
FRPPLWWHGQRFOHDUHUURULQGHWHUPLQLQJWKDW+DUYDUGGLGQRW            $GPLQLVWUDWLRQRUDVDQDOWHUQDWHIRUVXFKPHPEHUXQOHVV
FRPSO\ZLWKWKHSURSHUEHQHILWGHQLDODQGDSSHDOSURFHGXUHV             QRWLFHRIKLVDSSRLQWPHQWKDVEHHQJLYHQLQZULWLQJE\
WKDWDUHVHWIRUWKLQWKHSODQ                                         WKHSDUW\PDNLQJWKHDSSRLQWPHQWWRWKHRWKHUSDUW\
   +DYLQJ LGHQWLILHG QR FOHDU HUURU LQ WKH GLVWULFW FRXUWjV       6HFWLRQ H JUDQWV WKH %RDUG GLVFUHWLRQ WR PDNH
ILQGLQJWKDW+DUYDUGGLGQRWFRPSO\ZLWKWKHSODQSURFHGXUHV          GHWHUPLQDWLRQVRQEHQHILWVHOLJLELOLW\m7KH%RDUGVKDOOKDYH
LQUHVFLQGLQJ6DQIRUGjVEHQHILWVZHDOVRKROGWKDWWKHFRXUW         WKHSRZHUVDQGGXWLHV>W@RPDNHGHWHUPLQDWLRQVDVWR
GLGQRWHUUE\UHYLHZLQJ+DUYDUGjVGHFLVLRQGHQRYRUDWKHU           WKH ULJKWV RI DQ\ (PSOR\HHV DSSO\LQJ IRU RU UHFHLYLQJ
WKDQ XQGHU WKH PRUH GHIHUHQWLDO mDUELWUDU\ DQG FDSULFLRXVl     UHWLUHPHQW EHQHILWV DQG WR DIIRUG DQ\ VXFK LQGLYLGXDO
VWDQGDUG  2XU FLUFXLW KDV QRW SUHYLRXVO\ DGGUHVVHG WKH       GLVVDWLVILHG ZLWK DQ\ VXFK GHWHUPLQDWLRQV WKH ULJKW WR D
VWDQGDUGRIUHYLHZDSSOLFDEOHWRDGHFLVLRQWRUHYRNHEHQHILWV        KHDULQJWKHUHRQl)LQDOO\SURYLGHVWKDWm>G@HFLVLRQVRI
ZKHQ WKDW GHFLVLRQ LV PDGH E\ D ERG\ RWKHU WKDQ WKH RQH    WKH %RDUG VKDOO EH E\ D PDMRULW\ RI WKH YRWHV FDVW  $OO
DXWKRUL]HGE\WKHSURFHGXUHVVHWIRUWKLQDEHQHILWVSODQ:H        GHFLVLRQVRIWKH%RDUGZLWKLQWKHVFRSHRILWVUHVSRQVLELOLWLHV
DGRSWWKHYLHZHVSRXVHGE\WKH6HFRQG&LUFXLWLQ6KDUNH\Y           VKDOOEHILQDODQGELQGLQJEXWDQ\SHUVRQVKDOO
      6DQIRUGHWDOY+DUYDUG                      1R    1R                     6DQIRUGHWDOY+DUYDUG        
       ,QGXVWULHVHWDO                                                                                      ,QGXVWULHVHWDO

KDYH WKH ULJKW WR DSSHDO LQ DFFRUGDQFH ZLWK >WKH SODQjV        +DYLQJDVFHUWDLQHGWKDWWKHGHFLVLRQWRUHYRNH6DQIRUGjV
SURYLVLRQV@l                                                       EHQHILWVZDVPDGHE\DQXQDXWKRUL]HGERG\DQGQRWE\WKH
                                                                      %RDUGWKHGLVWULFWFRXUWFRQFOXGHGWKDWLWZDVDSSURSULDWHWR
  $VDJHQHUDOSULQFLSOHRI(5,6$ODZIHGHUDOFRXUWVUHYLHZ          UHYLHZ +DUYDUGjV GHQLDO RI EHQHILWV GH QRYR  ,W UHOLHG RQ
DSODQDGPLQLVWUDWRUjVGHQLDORIEHQHILWVGHQRYRmXQOHVVWKH        6KDUNH\Y8OWUDPDU(QHUJ\/WG)GG&LU
EHQHILW SODQ JLYHV WKH SODQ DGPLQLVWUDWRU GLVFUHWLRQDU\         KROGLQJWKDWm>Z@KHUHDQXQDXWKRUL]HGSDUW\PDNHVWKH
DXWKRULW\WRGHWHUPLQHHOLJLELOLW\IRUEHQHILWVRUWRFRQVWUXH        GHWHUPLQDWLRQDGHQLDORISODQEHQHILWVLVUHYLHZHGXQGHUWKH
WKHWHUPVRIWKHSODQl:LONLQVY%DSWLVW+HDOWKFDUH6\V          GH QRYR VWDQGDUGl DQG 5RGULJXH]$EUHX Y &KDVH
,QF)GWK&LUFLWLQJ)LUHVWRQH7LUH        0DQKDWWDQ%DQN)GVW&LUVDPH
	5XEEHU&RY%UXFK86:KHQD
SODQDGPLQLVWUDWRUKDVGLVFUHWLRQDU\DXWKRULW\ WR GHWHUPLQH            2QDSSHDO+DUYDUGFODLPVWKDWWKHGLVWULFWFRXUWHUUHGE\
EHQHILWVZHZLOOUHYLHZDGHFLVLRQWRGHQ\EHQHILWVXQGHUmWKH       IDLOLQJWRUHYLHZWKHFRPSDQ\jVGHFLVLRQWRUHYRNH6DQIRUGjV
KLJKO\ GHIHUHQWLDO DUELWUDU\ DQG FDSULFLRXV VWDQGDUG RI         EHQHILWV XQGHU WKH GHIHUHQWLDO mDUELWUDU\ DQG FDSULFLRXVl
UHYLHZl<HDJHUY5HOLDQFH6WDQGDUG/LIH,QV&R)G          VWDQGDUG,WDUJXHVWKDWWKHGLVWULFWFRXUWHOHYDWHGIRUPRYHU
WK&LU                                             VXEVWDQFH LQ LWV IDFWXDO GHWHUPLQDWLRQ WKDW WKH PHHWLQJ DW
                                                                      ZKLFK+DUYDUGGHFLGHGWRUHYRNH6DQIRUGjVEHQHILWVZDVD
  7KHGLVWULFWFRXUWFRQFOXGHGWKDWHRI+DUYDUGjVSODQ        KHDULQJRQDXQLRQJULHYDQFHDQGQRWDQDXWKRUL]HGSURFHGXUH
VSHFLILFDOO\FORWKHVWKH%RDUGZLWKGLVFUHWLRQDU\DXWKRULW\WR        IRUGHWHUPLQLQJEHQHILWVHOLJLELOLW\DVVHWIRUWKLQRIWKH
GHFLGHEHQHILWVHOLJLELOLW\1HYHUWKHOHVVWKHFRXUWGHWHUPLQHG      SODQ+DUYDUGjVPDLQFRQWHQWLRQRQDSSHDOWKHUHIRUHLVWKDW
WKDWLWZDVQRWWKH%RDUGWKDWGHQLHG6DQIRUGKLVEHQHILWVEXW       WKH GLVWULFW FRXUWjV IDFWXDO ILQGLQJV ZHUH FOHDUO\ HUURQHRXV
UDWKHU WKH FRPSDQ\ DW D PHHWLQJ SURPSWHG E\ D XQLRQ          +DGWKHGLVWULFWFRXUWDSSOLHGWKHGHIHUHQWLDOmDUELWUDU\DQG
JULHYDQFH KHOG XQGHU WKH DXVSLFHV RI WKH &%$ 7KLV            FDSULFLRXVlVWDQGDUGRIUHYLHZ+DUYDUGPDLQWDLQV WKDWWKH
FRQWUDYHQHGWKHSURFHGXUHVVHWIRUWKLQRIWKHSODQ,QWKH      FRXUWZRXOGKDYHXSKHOGWKHFRPSDQ\jVGHFLVLRQWRUHYRNH
ZRUGVRIWKHGLVWULFWFRXUW                                          6DQIRUGjVEHQHILWV
    7KH XQLRQ JULHYDQFH ZDV KHDUG EDVHG RQ SURFHGXUHV            %DVHGRQWKHUHFRUGEHIRUHXVZHFRQFOXGHWKDWWKHGLVWULFW
    VSHOOHG RXW LQ WKH &%$ QRW LQ DFFRUGDQFH ZLWK            FRXUW GLG QRW FRPPLW FOHDU HUURU LQ PDNLQJ WKH IDFWXDO
    UHTXLUHPHQWVIRUDQDSSHDOXQGHUWKH3ODQ1RIRUPDO             GHWHUPLQDWLRQWKDW+DUYDUGIDLOHGWRIROORZSURSHUSURFHGXUHV
    DSSHDOXQGHUWKH3ODQZDVHYHUKHDUG6DQIRUGZDVQHYHU          LQDFFRUGDQFHZLWK WKH SODQZKHQWKHFRPSDQ\GHFLGHGWR
    QRWLILHGRIWKHPHHWLQJZLWKGLVJUXQWOHGXQLRQPHPEHUV            UHYRNH6DQIRUGjVEHQHILWV7KHWHVWLPRQ\RI/HH)HUUHHWKH
    QRUZDVKHDIIRUGHGWKHRSSRUWXQLW\WRDWWHQGWKHPHHWLQJ         sDFNVRQ SODQW PDQDJHU LQ  SURYLGHV HYLGHQFH RI
    RUHYHQWRSUHVHQWHYLGHQFHRQKLVEHKDOI1RPHHWLQJRI         +DUYDUGjV GHFLVLRQPDNLQJ SURFHVV  $FFRUGLQJ WR )HUUHH
    WKH %RDUG HYHU RFFXUUHG  >+DUYDUG FODLPV@ WKDW PRVW      +DUYDUGjV FRUSRUDWH KHDGTXDUWHUV LQ 7DPSD )ORULGD
    PHPEHUVRIWKH%RDUGZHUHSUHVHQWDWWKHXQLRQPHHWLQJ           GHWHUPLQHGWKDWDPLVWDNHKDGEHHQPDGHLQJUDQWLQJ6DQIRUG
    EXWWKLVGRHVQRWDOWHUWKHIDFWWKDWQRIRUPDODSSHDODV         HDUO\ UHWLUHPHQW DQG KDG GHFLGHG WR UHVFLQG 6DQIRUGjV
    UHTXLUHG XQGHU WKH 3ODQ HYHU WRRN SODFH  ,Q RUGHU WR   EHQHILWV $ PHPRUDQGXP ZDV VHQW IURP +DUYDUGjV
    VDWLVI\ WKH GLVJUXQWOHG HPSOR\HHV GHQLHG DQ HDUO\           KHDGTXDUWHUV WR )HUUHH DQG 0F.LQQRQ +DUYDUGjV +XPDQ
    UHWLUHPHQW >+DUYDUG@ XQLODWHUDOO\ UHVFLQGHG 6DQIRUGjV        5HVRXUFHV 0DQDJHU LQ sDFNVRQ LQVWUXFWLQJ WKHP WR DGYLVH
    UHWLUHPHQW                                                       6DQIRUGRIWKHPLVWDNH
