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 DS

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH    1R   Y  !  0,1 1$1 :$1*  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW&RRNHYLOOH 1R n7KRPDV$:LVHPDQsU'LVWULFWsXGJH $UJXHG 6HSWHPEHU  'HFLGHGDQG)LOHG $XJXVW %HIRUH %$7&+(/'(5DQG*,/0$1&LUFXLWsXGJHV +22''LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('   +HQU\ $ 0DUWLQ )('(5$/ 38%/,& '()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW +DUROG%0F'RQRXJKsU$66,67$1781,7('67$7(6

7KH +RQRUDEOH 'HQLVH 3DJH +RRG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

$77251(< 1DVKYLOOH 7HQQHVVHH IRU $SSHOOHH WKHXQGHUO\LQJFULPHRIUREEHU\XQGHUWKH+REEV$FWWKHUHLV 21 %5,()   +HQU\ $ 0DUWLQ )('(5$/ 38%/,& LQVXIILFLHQW HYLGHQFH WR FRQYLFW :DQJ XQGHU †  F  '()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW :DQJjVFRQYLFWLRQXQGHU&RXQW,,PXVWDOVREHUHYHUVHG +DUROG%0F'RQRXJKsU$66,67$1781,7('67$7(6 $77251(<1DVKYLOOH7HQQHVVHHIRU$SSHOOHH %$7&+(/'(5sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQ ZKLFK *,/0$1 s MRLQHG  +22' ' s SS   GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB $/,&(0%$7&+(/'(5&LUFXLWsXGJH0LQ1DQ:DQJ DSSHDOV KLV FRQYLFWLRQV RI UREEHU\ DIIHFWLQJ LQWHUVWDWH FRPPHUFHLQYLRODWLRQRI86&† DQGRIXVLQJDQG FDUU\LQJDILUHDUPLQUHODWLRQWRDFULPHRIYLROHQFH UREEHU\ LQYLRODWLRQRI86&†  F  )RUWKHUHDVRQVWKDW IROORZZHUHYHUVHWKHVHFRQYLFWLRQV , 3DXO DQG 3DWULFLD 7VDL DUH WKH RZQHUV RI WKH &KLQD 6WDU 5HVWDXUDQW LQ &RRNHYLOOH 7HQQHVVHH  7KH &KLQD 6WDU SXUFKDVHV PHDW DQG VHDIRRG IURP RXWRIVWDWH VXSSOLHUV DSSUR[LPDWHO\ WZLFH SHU PRQWK  2Q 6HSWHPEHU    0UV7VDLFORVHGWKHUHVWDXUDQWDWDSSUR[LPDWHO\ SP DQGGURYHWRKHUKRPHLQ$OJRRG7HQQHVVHHIROORZHGE\0U 7VDLLQDVHSDUDWHFDU6KHWRRNZLWKKHUIURPWKHFDVK UHJLVWHU   RI ZKLFK VKH LQWHQGHG WR GHSRVLW LQ WKH UHVWDXUDQWjVEDQNDFFRXQWWKHQH[WPRUQLQJ0UV7VDLGURYH LQWR WKH JDUDJH RI KHU KRPH DQG WKHQ HQWHUHG WKH KRXVH SODFLQJ WKH PRQH\ IURP WKH UHVWDXUDQW RQ WKH GLQLQJ URRP IORRU6KHWKHQZHQWWRKHUEHGURRPZKHUHXQEHNQRZQVWWR KHU:DQJZKRKDGEURNHQLQWRWKHKRXVHVRPHWLPHHDUOLHU ZDVOXUNLQJ:DQJJUDEEHG0UV7VDLIURPEHKLQGDQGWROG KHULQ&KLQHVHWREHTXLHW:KHQ0UV7VDLUHVLVWHG:DQJ KLWKHURQWKHKHDGZLWKDKDUGREMHFWKDQGFXIIHGKHUDQGSXW VRPHWKLQJRYHUKHUIDFHWHOOLQJKHUWRVKXWXSRUKHZRXOG  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

,G DW  IRRWQRWHV FLWDWLRQV DQG LQWHUQDO TXRWDWLRQV NLOOKHU+HWKHQSXOOHGKHULQWRWKHEDWKURRPGHSRVLWHGKHU RPLWWHG  LQWKHEDWKWXEDQGVHFXUHGKHUWRDUDLOLQJRQWKHZDOOQH[WWR WKHEDWKWXE0UV7VDLUHFRJQL]HG:DQJjVYRLFHEHFDXVHKH $SSO\LQJWKH&ROOLQVIDFWRUVWRWKHIDFWVLQWKLVFDVHWKHUH KDGRQFHZRUNHGDVDFRRNLQKHUUHVWDXUDQW LVLQVXIILFLHQWHYLGHQFHWRILQGDYLRODWLRQRIWKH+REEV$FW 7KHHYLGHQFHVKRZVWKDWWKH7VDLVZHUHUREEHGLQWKHLUKRPH $V0U7VDLSDUNHGKLVFDULQWKHJDUDJHKHKHDUGKLVZLIH RILQFDVKIURPWKHUHVWDXUDQWUHFHLSWVIRUWKHGD\ VFUHDPLQJ:KHQKHHQWHUHGWKHKRXVH:DQJjVDFFRPSOLFH DQGLQFDVKIURPWKH7VDLVjSHUVRQDODFFRXQW7KH DWWDFNHGKLPIURPWKH VLGH KLWWLQJKLPLQWKHKHDGZLWKD HYLGHQFHLVLQVXIILFLHQWWRVKRZWKDWWKHWRWDODPRXQWWDNHQ KDUGREMHFW7KHDFFRPSOLFHWRRNKLPWRWKHEHGURRPFORVHW VLJQLILFDQWO\GHSOHWHGWKH7VDLVjSHUVRQDODFFRXQWEXVLQHVV KDQGFXIIHGKLPWRWKHFORWKHVUDLODQGWKUHDWHQHGWRNLOOKLP DFFRXQW RU UHVWDXUDQW DVVHWV RU WKDW WKH\ ZHUH OLNHO\ WR EH XQOHVV7VDLWROGKLPZKHUHWKHPRQH\LQWKHKRXVHZDV7KH GHSOHWHG7KHGLVWULFWFRXUWIRXQGWKDWWKHUHVWDXUDQWZDVQRW DVVDLODQWVKRZHGKLPDJXQORDGHGLWLQIURQWRIKLPDQG FORVHGDVDUHVXOWRIWKHUREEHU\QRUZHUHWKH7VDLVSUHYHQWHG SRLQWHGLWDWKLVKHDG IURP RUGHULQJ DQ\ JRRGV IURP RXWRI VWDWH  7KH HYLGHQFH GRHVQRWVKRZWKDWWKHQXPEHURILQGLYLGXDOVYLFWLPL]HGRU %\WKLVWLPH:DQJKDGSODFHGWDSHRQ0UV7VDLjVPRXWK WKH VXP WDNHQ ZDV VR ODUJH WKDW WKHUH ZDV DQ\ FXPXODWLYH +HWROGKHUUHSHDWHGO\m<RXUPRQH\RU\RXUOLIHl:DQJDQG HIIHFW RQ LQWHUVWDWH FRPPHUFH  %DVHG RQ WKH HYLGHQFH KLV DFFRPSOLFH OHIW WKHLU YLFWLPV RQ VHYHUDO RFFDVLRQV WR SUHVHQWHGDWWULDOWKHUHZDVLQVXIILFLHQWHYLGHQFHWRVXSSRUW FRQIHULQDGLDOHFWWKDWQHLWKHURIWKH7VDLVFRXOGXQGHUVWDQG DILQGLQJWKDWWKHUREEHU\RIWKH7VDLVDWWKHLUKRPHKDGHYHQ (DFKWLPH:DQJUHWXUQHGIURPPHHWLQJZLWKKLVDFFRPSOLFH D GH PLQLPLV DIIHFW RQ LQWHUVWDWH FRPPHUFH  :DQJjV KH ZRXOG GHPDQG PRQH\ IURP 0UV 7VDL  0UV 7VDL FRQYLFWLRQRQ&RXQW,LVWKHUHIRUHUHYHUVHG HYHQWXDOO\WROG:DQJDERXWVKHKDGHDUOLHUZLWKGUDZQ IURP KHU SHUVRQDO DFFRXQW DQG OHIW LQ DQ HQYHORSH RQ KHU & )LUHDUPV&KDUJH &RXQW,, GLQLQJURRPWDEOH%HIRUH WKHSDLUOHIWWKHKRXVH:DQJjV DFFRPSOLFHPRYHG0U7VDLIURPWKHEHGURRPFORVHWWRWKH 6HFWLRQ  F  PDNHV LW XQODZIXO IRU mDQ\ SHUVRQ ZKR XWLOLW\URRP7KHUREEHUVGURYHDZD\LQWKH7VDLVj7R\RWD GXULQJDQGLQUHODWLRQWRDQ\FULPHRIYLROHQFHIRUZKLFK &RUROODDXWRPRELOH WKHSHUVRQPD\EHSURVHFXWHGLQDFRXUWRIWKH8QLWHG6WDWHV XVHVRUFDUULHVDILUHDUPRUZKRLQIXUWKHUDQFHRIDQ\VXFK :DQJZDVODWHUDUUHVWHGLQ&KDPEOHH*HRUJLDSXUVXDQWWR FULPH SRVVHVVHV D ILUHDUPl   86& †  F  $ D 3XWQDP &RXQW\ 7HQQHVVHH ZDUUDQW IRU HVSHFLDOO\ HPSKDVLV DGGHG   6HFWLRQ  F   LV D GLVWLQFW RIIHQVH DJJUDYDWHG UREEHU\ HVSHFLDOO\ DJJUDYDWHG NLGQDSSLQJ DQG UDWKHUWKDQPHUHO\EHLQJDVHQWHQFLQJHQKDQFHPHQWSURYLVLRQ HVSHFLDOO\ DJJUDYDWHG EXUJODU\  2Q $XJXVW    D 8QLWHG6WDWHVY1HOVRQ)G  WK&LU  IHGHUDOJUDQGMXU\UHWXUQHGDIRXUFRXQWLQGLFWPHQWFKDUJLQJ 8QLWHG 6WDWHV Y 2VSLQD  )G   WK &LU :DQJZLWKUREEHU\DIIHFWLQJLQWHUVWDWHFRPPHUFHLQYLRODWLRQ   $GHIHQGDQWQHHGQRWEHFRQYLFWHGRUHYHQFKDUJHG RI86&†  &RXQW, XVLQJDQGFDUU\LQJDILUHDUPLQ ZLWK WKH XQGHUO\LQJ FULPH WR EH FRQYLFWHG XQGHU †  F  UHODWLRQ WR D FULPH RI YLROHQFH LQ YLRODWLRQ RI  86& 1HOVRQ  )G DW   +RZHYHU LW LV QHFHVVDU\ WKDW WKH †  F   &RXQW,, FDUMDFNLQJLQYLRODWLRQRI86& JRYHUQPHQW SURYH EH\RQG D UHDVRQDEOH GRXEW DOO RI WKH †  &RXQW,,, DQGWUDQVSRUWLQJDVWROHQPRWRUYHKLFOHLQ HOHPHQWV RI †  F  RQH RI ZKLFK LV WKDW WKH GHIHQGDQW LQWHUVWDWHFRPPHUFHLQYLRODWLRQRI86&† &RXQW FRPPLWWHGWKHXQGHUO\LQJFULPH,GDW%HFDXVH ,9 :DQJZDVDOVRFKDUJHGZLWKDLGLQJDQGDEHWWLQJXQGHU WKHUHLVLQVXIILFLHQWHYLGHQFHWRVKRZWKDW:DQJFRPPLWWHG 86&†DVWRDOOIRXUFRXQWV  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

7KH FDVH ZDV WULHG ZLWKRXW D MXU\  7KH GLVWULFW FRXUW FHOOXODUWHOHSKRQHWRPDNHEXVLQHVVFDOOV,GDW 7KH)LIWK JUDQWHG:DQJjVPRWLRQIRUMXGJPHQWRIDFTXLWWDORQ&RXQW,,, &LUFXLW KHOG WKDW WKH UREEHU\ LQ&ROOLQV GLG QRW YLRODWH WKH RIWKH LQGLFWPHQWDQGIRXQG:DQJJXLOW\RIWKHUHPDLQLQJ +REEV$FWVWDWLQJWKDWmLIWKHUREEHU\RIDQLQGLYLGXDOZHUH FRXQWV7KHFRXUWVHQWHQFHG:DQJWRWZHQW\IRXUPRQWKVRQ IRXQGWRDIIHFWLQWHUVWDWHFRPPHUFHPHUHO\EHFDXVHRIWKHUHDO &RXQWV,DQG,9WKHUREEHU\DQGWKHLQWHUVWDWHWUDQVSRUWDWLRQ RU SHUFHLYHG GLVUXSWLRQ RI WKH LQGLYLGXDOjV EXVLQHVV E\ RI VWROHQ PRWRU YHKLFOH FRXQWV IROORZHG E\ ILYH \HDUV RQ LQWHUIHULQJZLWKKLVZRUNWKHUHDFKRIVHFWLRQ  D ZRXOG &RXQW,,IRUWKHYLRODWLRQRI86&†  F ,QKDQGLQJ EH XELTXLWRXV DQG DQ\ UREEHU\ LQ RXU FORVHO\LQWHUZRYHQ GRZQWKLVVHQWHQFHWKHGLVWULFWFRXUWGHSDUWHGGRZQZDUGWHQ HFRQRP\DUJXDEO\ZRXOGDIIHFWLQWHUVWDWHFRPPHUFHl,GDW OHYHOVIURPDWRWDORIIHQVHOHYHORIILQGLQJWKDW:DQJKDG   7KH )LIWK &LUFXLW ZHQW RQ WR VWDWH m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l,G LQWHUQDOFLWDWLRQVRPLWWHG 7KH)LIWK&LUFXLW ZLWKUHVSHFWWR&RXQWV,DQG,, REVHUYHG WKDW mWKH +REEV $FW ZDV LQWHQGHG WR UHDFK RQO\ FHUWDLQDFWLYLWLHVWKDWKDPSHULQWHUVWDWHEXVLQHVVUHIOHFWLQJWKH ,, ORQJUHFRJQL]HGSULQFLSOHWKDWWKHVWDWHVDUHEHVWSRVLWLRQHG DQGHTXLSSHGWRHQIRUFHWKHJHQHUDOFULPLQDOODZVl,G :DQJ ILUVW DVVDLOV KLV FRQYLFWLRQ IRU UREEHU\ DIIHFWLQJ LQWHUVWDWHFRPPHUFHLQYLRODWLRQRI86&† 7KDW 7KH)LIWK&LUFXLWDOVRQRWHGWKDWWKHmGHSOHWLRQRIDVVHWVl VWDWXWHWKH+REEV$FWSURYLGHVLQUHOHYDQWSDUW WKHRU\ IDOOV LQ DQ LQGLUHFW HIIHFW FDWHJRU\ RQ LQWHUVWDWH FRPPHUFH DV RSSRVHG WR D GLUHFW HIIHFW RQ LQWHUVWDWH :KRHYHU LQ DQ\ ZD\ RU GHJUHH REVWUXFWV GHOD\V RU FRPPHUFH ,G DW   7KLV mGHSOHWLRQRIDVVHWVl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†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jV ,XUJHWKHKLJKHUFRXUWVWRFKDQJHWKDWSUHFHGHQWDVWKH\ FRQYLFWLRQ E\ GHWHUPLQLQJ mZKHWKHU DIWHU UHYLHZLQJ WKH KDYH EHJXQ DSSDUHQWO\ WR GR LQ WKH /RSH] FDVH DQG LQ HYLGHQFHLQWKHOLJKWPRVWIDYRUDEOHWRWKHSURVHFXWLRQDQ\ RWKHUV UDWLRQDOWULHURIIDFWFRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWV RIWKHFULPHEH\RQGDUHDVRQDEOHGRXEWl8QLWHG6WDWHVY 1HYHUWKHOHVV WKH &RXUW ILQGV WKDW WKH HOHPHQWV RI %URZQ  )G WK&LU   TXRWLQJsDFNVRQY &RXQW2QHKDYHEHHQSURYHQDQGWKH&RXUWILQGV\RX 9LUJLQLD86     JXLOW\0U:DQJ0LQ1DQRIDYLRODWLRQRI+REEV$FW DVFKDUJHGLQ&RXQW2QHRIWKHLQGLFWPHQW +LVWRULFDOO\ ZH KDYH HUHFWHG D UDWKHU ORZ WKUHVKROG IRU GHWHUPLQLQJ ZKHWKHU UREEHU\ GLUHFWHG DW D EXVLQHVV s$DW HPSKDVLVDGGHG  HVWDEOLVKPHQWZLOOJLYHULVHWRIHGHUDOFULPLQDOMXULVGLFWLRQ XQGHU† 7RVXSSRUWDFRQYLFWLRQXQGHUWKH+REEV$FW 7KHGLVWULFWFRXUWjVILQGLQJIRFXVHGRQ:DQJjVDFWLYLW\DQG ZH KDYH UHTXLUHG WKH JRYHUQPHQW WR GHPRQVWUDWH QRWKLQJ IRXQGWKDWWKHPRQH\WDNHQIURPWKH7VDLVLQWKHDPRXQWRI PRUHWKDQDGHPLQLPLVHIIHFWRQLQWHUVWDWHFRPPHUFH6HH KDGDGHPLQLPLVHIIHFWRQLQWHUVWDWHFRPPHUFH 8QLWHG6WDWHVY+DUGLQJ)G  WK&LU   7KHGLVWULFWFRXUWGLGQRWIRFXVRQWKHYLFWLPVjDFWLYLW\DWWKH m7KHUH LV QR UHTXLUHPHQW WKDW WKHUH EH DQ DFWXDO HIIHFW RQ WLPH RI WKH UREEHU\ DQG GLG QRW GLIIHUHQWLDWH EHWZHHQ D LQWHUVWDWH FRPPHUFHnRQO\ D UHDOLVWLF SUREDELOLW\ WKDW >DQ UREEHU\ RI DQ LQGLYLGXDO DQG D UREEHU\ RI D EXVLQHVV  ,Q RIIHQVH@ZLOOKDYHDQHIIHFWRQLQWHUVWDWHFRPPHUFHl8QLWHG 6PLWKWKHUREEHU\LQYROYHGDSODFHRIEXVLQHVV7KH7VDLV 6WDWHV Y 3HHWH   )G   WK &LU   ZHUHQRWDWWKHLUSODFHRIEXVLQHVVZKHQWKH\ZHUHUREEHG HPSKDVLVRPLWWHG 7KXVIRUH[DPSOHZHKDYHXSKHOGD 7KH UREEHU\WRRNSODFHDWWKHYLFWLPVjSULYDWHKRPH7KH +REEV$FWFRQYLFWLRQZKHUHWKHGHIHQGDQWDWWHPSWHGWRVWHDO HYLGHQFHVKRZVLQWKLVFDVHWKDWWKH7VDLVZHUHLQYROYHGLQ EHWZHHQ  DQG  IURP D WDYHUQ WKDW SXUFKDVHG WKH UHVWDXUDQW EXVLQHVV DQG WKDW VRPH RI WKH JRRGV IRU WKH JRRGVIURPORFDOGLVWULEXWRUVZKRLQWXUQSXUFKDVHGJRRGV EXVLQHVV ZHUH SXUFKDVHG RXWVLGH WKH VWDWH RI 7HQQHVVHH IURPRXWVLGHWKHVWDWH6HH%URZQ  )GDW+DGWKH 6WROHQIURPWKH7VDLVjKRPHZDVPRQH\EURXJKWKRPHIURP KHLVW EHHQ VXFFHVVIXO ZH QRWHG WKHUH ZDV D mUHDOLVWLF WKHEXVLQHVVPRQH\IURPWKHLUSHUVRQDODFFRXQWZKLFKZDV SUREDELOLW\WKDWWKHGHSOHWLRQRIWKHEDUjVDVVHWVZRXOGKDYH RQWKHGLQLQJURRPWDEOHDQGDYHKLFOH DIIHFWHGWKHDPRXQWRILWVSXUFKDVHVRIEHHUKDYLQJPRYHG WKURXJKLQWHUVWDWHFRPPHUFHl,GDW ,Q8QLWHG6WDWHVY&ROOLQV)G  WK&LU  WKH )LIWK&LUFXLWGHOLQHDWHGWKHGLIIHUHQFHEHWZHHQDUREEHU\RID 7KHMXULVSUXGHQWLDOODQGVFDSHKDVQRWPXFKFKDQJHGLQWKH EXVLQHVVDQGRIDQLQGLYLGXDO7KHJRYHUQPHQWjVWKHRU\LQ ZDNHRI/RSH]WKHODQGPDUNFDVHWKDWVWUXFNGRZQWKH*XQ &ROOLQVZDVWKDWWKHUREEHU\RIWKHYLFWLPLQKLVSHUVRQDOO\ )UHH6FKRRO=RQHV$FWRI 86&†  T DVDQ RZQHG YHKLFOH DIIHFWHG LQWHUVWDWH FRPPHUFH EHFDXVH DV D LQYDOLGH[HUFLVHRI&RQJUHVVjVSRZHUXQGHUWKH&RPPHUFH FRQVHTXHQFHRIWKHUREEHU\WKHYLFWLPZDVSUHYHQWHGIURP &ODXVH6HH/RSH]86DW)DFLDOFRQVWLWXWLRQDO DWWHQGLQJDEXVLQHVVPHHWLQJDQGSUHYHQWHGIURPXVLQJKLV  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

FKDOOHQJHVWRWKH+REEV$FWIROORZHGFORVHRQWKHKHHOVRI %ROWRQ)G   WK&LU   LQWHUQDOTXRWDWLRQV /RSH],QWXUQLQJDZD\WKHILUVWRIWKHVHLQ8QLWHG6WDWHVY RPLWWHG  9DOHQ]HQRZH UHPDUNHGLQGLFWDWKDWm>L@I/RSH]LQGLFDWHV WKDWWKH&RPPHUFH&ODXVHJLYHV&RQJUHVVOHVVSRZHUWKDQ ,Q6PLWKWKHGHIHQGDQWDQGRWKHUVUREEHGSDUW\VWRUHV7KH ZDV SUHYLRXVO\ WKRXJKW WR EH WKH FDVH WKH SURSHU UHPHG\ GHIHQGDQWDUJXHGRQDSSHDOWKDWWKHWHVWXQGHUWKH+REEV$FW ZRXOGEHWRJLYHWKHVWDWXWHDQDUURZHULQWHUSUHWDWLRQRUWR ZDV ZKHWKHU WKH UREEHULHV KDG D mVXEVWDQWLDO HIIHFWl RQ UHTXLUHDPRUHVXEVWDQWLDOMXULVGLFWLRQDOQH[XVQRWWRKROG LQWHUVWDWH FRPPHUFH LQVWHDG RI WKH mGH PLQLPLVl HIIHFW IDFLDOO\LQYDOLGDQ$FWRI&RQJUHVVl9DOHQ]HQR)G SUHYLRXVO\UHTXLUHGLQWKLV&LUFXLW,GDW$SSO\LQJWKH  WK&LU  8OWLPDWHO\KRZHYHUm>Z@HMRLQ>HG@ 7HQWK &LUFXLWjV UHDVRQLQJ WKDW WKH VLQJOH DFWLYLW\ RI WKH RXUVLVWHUFLUFXLWVDQG>KHOG@WKDWWKHGHPLQLPLVVWDQGDUGIRU SHUSHWUDWRULVQRWWKHWHVWEXWLQWKHDJJUHJDWHZKHWKHUWKH WKH LQWHUVWDWH FRPPHUFH HIIHFWV RI LQGLYLGXDO +REEV $FW DFWLYLWLHVVXEVWDQWLDOO\DIIHFWLQWHUVWDWHFRPPHUFHWKLV&LUFXLW YLRODWLRQVVXUYLYHG/RSH]l8QLWHG6WDWHVY6PLWK)G IRXQGWKDWWKHJRYHUQPHQWKDGPHWLWVEXUGHQE\SURYLQJWKDW  WK&LU  WKHUREEHGVWRUHVFRQGXFWHGmVXEVWDQWLDOlEXVLQHVVLQEHHU ZLQHDQGWREDFFRSURGXFWVDQGWKDWPRVWRIWKHSURGXFWVGLG 7KH/RSH]&RXUWKDGUHFRJQL]HGWKDWWKHFRPPHUFHSRZHU QRWRULJLQDWHLQ0LFKLJDQ,G7KHVLQJOHmDFWLYLW\lRIWKH LQFOXGHV UHJXODWLRQ RI DFWLYLWLHV WKDW DUH FRQQHFWHG ZLWK D SHUSHWUDWRU DQG mWKH GH PLQLPLV FKDUDFWHU RI LQGLYLGXDO FRPPHUFLDO WUDQVDFWLRQ ZKLFK YLHZHG LQ WKH DJJUHJDWH LQVWDQFHV DULVLQJ XQGHU WKH VWDWXWH LV RI QR FRQVHTXHQFHl VXEVWDQWLDOO\DIIHFWVLQWHUVWDWHFRPPHUFH/RSH]86DW %ROWRQ)GDW  2QWKLVEDVLVZHGHFLGHGWKDW/RSH]GLGQRWUHTXLUH UHDOLJQPHQWRIWKH+REEV$FWjVMXULVGLFWLRQDOQH[XVEHFDXVH ,QLWVUXOLQJWKHGLVWULFWFRXUWLQWKLVFDVHEHOLHYHGWKDWLW LQGLYLGXDOLQVWDQFHVDULVLQJXQGHUWKHVWDWXWHFRXOGWKURXJK ZDVERXQGE\WKLV&LUFXLWjVFDVHVUHJDUGLQJWKHGHPLQLPLV UHSHWLWLRQKDYHDVXEVWDQWLDOHIIHFWRQLQWHUVWDWHFRPPHUFH WHVW RI KRZ WR GHWHUPLQH WKH HIIHFWV RI WKH DFWLYLW\ RQ 6HH6PLWK)GDW6RLQ8QLWHG6WDWHVY6PLWKZH LQWHUVWDWHFRPPHUFHXQGHUWKH+REEV$FW%DVHGRQ6PLWK XSKHOGWKH+REEV$FWFRQYLFWLRQRIDGHIHQGDQWZKRUREEHG WKH GLVWULFW FRXUW ZDV FRUUHFW LQ LWV FRQFOXVLRQ WKDW WKH GH YDULRXV 0LFKLJDQ mSDUW\ VWRUHVl RI VXPV LQ WKH ORZ IRXU PLQLPLVVWDQGDUGLVVWLOODSSOLFDEOHXQGHUWKH+REEV$FWLQ ILJXUHVVD\LQJm%\SURYLQJWKDWWKHVWRUHV6PLWKUREEHGGLG WKLV &LUFXLW  +RZHYHU WKH IDFWV LQ WKLV FDVH DUH VXEVWDQWLDOEXVLQHVVLQEHHUZLQHDQGWREDFFRSURGXFWVDQG GLVWLQJXLVKDEOHIURPWKH6PLWKFDVH WKDWYLUWXDOO\QRQHRIVXFKSURGXFWVRULJLQDWHLQ0LFKLJDQWKH JRYHUQPHQWPHWLWVEXUGHQl,G 7KHGLVWULFWFRXUWLQLWVILQGLQJVWDWHG

(YHQDVEURDGO\SKUDVHGDVRXUSUHFHGHQWVDUHKRZHYHU 1RZ WKHQ RQ WKH TXHVWLRQ RI &RXQW 2QH RI WKH WKH\GRQRWFRPSHOWKHUHVXOWWKDWWKHGLVWULFWFRXUWUHOXFWDQWO\ LQGLFWPHQW7KLV&RXUWKDVSUHYLRXVO\H[SUHVVHGLWVOHJDO UHDFKHGLQWKLVFDVH$VZLWKmWKHRYHUZKHOPLQJPDMRULW\RI UHVHUYDWLRQV LWV SKLORVRSKLFDO UHVHUYDWLRQV DERXW WKH FDVHVLQYROYLQJWKHVWDWXWHl8QLWHG6WDWHVY4XLJOH\)G +REEV $FW DQG LWV XQUHDVRQDEOH VWUHWFKLQJ RI WKH    WK &LU    RXU SUHFHGHQWV KDYH LQYROYHG FRPPHUFHFODXVHEH\RQGDOOUHFRJQLWLRQ UREEHULHVLQZKLFKWKHYLFWLPVZHUHEXVLQHVVHVHQJDJHGLQ LQWHUVWDWHFRPPHUFH%XWZKHUHDVKHUHWKHFULPLQDODFWLV +RZHYHUWKLV&RXUWLVERXQGE\SUHFHGHQWVIURPWKH GLUHFWHG DW D SULYDWH FLWL]HQ WKH FRQQHFWLRQ WR LQWHUVWDWH 8QLWHG 6WDWHV 6XSUHPH &RXUW DV ZHOO DV WKH 6L[WK FRPPHUFH LV PXFK PRUH DWWHQXDWHG  6HH LG m$FWLRQV &LUFXLW  7KLV &RXUW ILQGV WKDW WKHUH LV QR HIIHFW RQ QRUPDOO\KDYHDOHVVHUHIIHFWRQLQWHUVWDWHFRPPHUFHZKHQ LQWHUVWDWH FRPPHUFH EH\RQG DQ DEVROXWH GH PLQLPLV HIIHFWRI  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

,QWKH9DOHQ]HQRFDVHWKLV&LUFXLWKDGWKHRSSRUWXQLW\WR GLUHFWHGDWLQGLYLGXDOVUDWKHUWKDQEXVLQHVVHVl 7KLVFDVH DGGUHVVWKH+REEV$FWSRVW/RSH]7KHVXIILFLHQF\RI WKH SUHVHQWVRXUILUVWRSSRUWXQLW\WRDGGUHVVWKHVKRZLQJWKDWWKH HIIHFWRQLQWHUVWDWHFRPPHUFHZDVQRWDGGUHVVHGKRZHYHU JRYHUQPHQWPXVWPDNHWRGHPRQVWUDWHWKDWWKHUREEHU\RIDQ EHFDXVH WKH GHIHQGDQW GLG QRW UDLVH WKDW LVVXH RQ DSSHDO LQGLYLGXDOKDGDmUHDOLVWLFSUREDELOLW\lRIDIIHFWLQJLQWHUVWDWH 9DOHQ]HQRRQO\DGGUHVVHGWKHFRQVWLWXWLRQDOLW\RIWKH+REEV FRPPHUFH&I8QLWHG6WDWHVY7D\ORU)G $FWLQOLJKWRI/RSH]7KLV&LUFXLWQRWHGLQ9DOHQ]HQRWKDW WK&LU  UHMHFWLQJDEODQNHWFRQVWLWXWLRQDOFKDOOHQJHWR m>L@I /RSH] LQGLFDWHV WKDW WKH &RPPHUFH &ODXVH JLYHV WKH+REEV$FWDVDSSOLHGWRUREEHULHVRISULYDWHFLWL]HQVRU &RQJUHVVOHVVSRZHUWKDQZDVSUHYLRXVO\WKRXJKWWREHWKH EXUJODULHVRIDSULYDWHUHVLGHQFHV :HKROGWKDWWKHUHTXLUHG FDVH WKH SURSHU UHPHG\ ZRXOG EH WR JLYH WKH VWDWXWH D VKRZLQJ LV RI D GLIIHUHQW RUGHU WKDQ LQ FDVHV LQ ZKLFK WKH QDUURZHU LQWHUSUHWDWLRQ RU WR UHTXLUH D PRUH VXEVWDQWLDO YLFWLPLVDEXVLQHVVHQWLW\ MXULVGLFWLRQDO QH[XV QRW WR KROG IDFLDOO\ LQYDOLG DQ $FW RI &RQJUHVVl9DOHQ]HQR)GDW 7KRVH &RXUWV RI $SSHDOV WKDW KDYH FRQVLGHUHG WKLV TXHVWLRQnHYHQLQWKHSUH/RSH]HUDnKDYHUHFRJQL]HGWKDWD &RQVLVWHQWZLWKWKH/RSH]FDVHWKHMXULVGLFWLRQDOWHVWRID UREEHU\ RI D SULYDWH FLWL]HQ WKDW FDXVHV RQO\ D VSHFXODWLYH IHGHUDOVWDWXWHVXFKDVWKH+REEV$FWLVZKHWKHUWKHUHJXODWHG LQGLUHFWHIIHFWRQDEXVLQHVVHQJDJHGLQLQWHUVWDWHFRPPHUFH DFWLYLW\ mVXEVWDQWLDOO\ DIIHFWVl LQWHUVWDWH FRPPHUFH  7KH ZLOOQRWVDWLVI\WKHMXULVGLFWLRQDOUHTXLUHPHQWRIWKH+REEV 6XSUHPH&RXUWLQ/RSH]DFNQRZOHGJHGWKDWSULRUWR/RSH] $FW7KH)LIWK&LUFXLWIRUH[DPSOHUHIXVHGWRDSSO\WKH$FW FDVH ODZ GLG QRW FOHDUO\ LQGLFDWH ZKHWKHU DQ DFWLYLW\ PXVW WRWKHUREEHU\RIDQDXWRPRELOHDQGDFHOOXODUWHOHSKRQHIURP mDIIHFWlRUmVXEVWDQWLDOO\DIIHFWlLQWHUVWDWHFRPPHUFHLQRUGHU DFRPSXWHUFRPSDQ\H[HFXWLYHHYHQWKRXJKWKHFULPHPLJKW IRU &RQJUHVV WR H[HUFLVH LWV SRZHU XQGHU WKH &RPPHUFH KDYHSUHYHQWHGWKHYLFWLPIURPDWWHQGLQJEXVLQHVVPHHWLQJV &ODXVH/RSH]86DW 7KH6XSUHPH&RXUWWKHQ RUPDNLQJEXVLQHVVFDOOV8QLWHG6WDWHVY&ROOLQV)G DQQRXQFHGWKDWWKHWHVWVKRXOGEHWKHmVXEVWDQWLDOO\DIIHFWVl  WK&LU   KROGLQJWKDWm>F@ULPLQDODFWVGLUHFWHG WHVW,G7KH6XSUHPH&RXUWDOVRQRWHGWKDWWKHMXULVGLFWLRQDO WRZDUG LQGLYLGXDOV PD\ YLRODWH VHFWLRQ   D  RQO\ LI HOHPHQWVKRXOGEHGHWHUPLQHGRQDmFDVHE\FDVHLQTXLU\l  WKHDFWVGHSOHWHWKHDVVHWVRIDQLQGLYLGXDOZKRLVGLUHFWO\ ,GDW DQGFXVWRPDULO\HQJDJHGLQLQWHUVWDWHFRPPHUFH   LIWKH DFWV FDXVH RU FUHDWH WKH OLNHOLKRRG WKDW WKH LQGLYLGXDO ZLOO 8QGHU WKH +REEV $FW WKH mVXEVWDQWLDOO\ DIIHFWVl WHVW GHSOHWHWKHDVVHWVRIDQHQWLW\HQJDJHGLQLQWHUVWDWHFRPPHUFH IRFXVHVRQWKHmDFWLYLW\lRIWKHYLFWLPLQYROYHGUDWKHUWKDQ RU  LIWKHQXPEHURILQGLYLGXDOVYLFWLPL]HGRUWKHVXPDW WKHVLQJOHFULPLQDODFWSHUIRUPHGE\WKHGHIHQGDQWDQGKRZ VWDNHLVVRODUJHWKDWWKHUHZLOOEHVRPHµFXPXODWLYHHIIHFWRQ WKDWDFWLYLW\DIIHFWVLQWHUVWDWHFRPPHUFH6HH8QLWHG6WDWHVY LQWHUVWDWHFRPPHUFHjl IRRWQRWHVRPLWWHG $QRWKHUFRXUW 6PLWK  )G   WK &LU    ,Q 6PLWK WKLV KHOGWKDWDUREEHU\RIWZRLQGLYLGXDOVZKRZHUHHQURXWHWRD &LUFXLWKHOGWKDWmWKHGHPLQLPLVVWDQGDUGIRUWKHLQWHUVWDWH OLTXRU VWRUH WR PDNH D SXUFKDVH KDG QR HIIHFW RU UHDOLVWLF FRPPHUFHHIIHFWVRILQGLYLGXDO+REEV$FWYLRODWLRQVVXUYLYHG SRWHQWLDOHIIHFWRQLQWHUVWDWHFRPPHUFH4XLJOH\)GDW /RSH]l,GDW7KH&RXUWDGRSWHGWKH7HQWK&LUFXLWjV  IROORZLQJ&ROOLQV 6LPLODUFRQFHUQVZHUHYRLFHGLQ UHDVRQLQJ UHJDUGLQJ WKH /RSH] GHFLVLRQ WKDW mLI D VWDWXWH FDVHV LQYROYLQJ H[WRUWLRQ GLUHFWHG DW SULYDWH FLWL]HQV 6HH UHJXODWHVDQDFWLYLW\ZKLFKWKURXJKUHSHWLWLRQLQDJJUHJDWH HJ8QLWHG6WDWHVY0DWWVRQ)G WK KDV D VXEVWDQWLDO HIIHFW RQ LQWHUVWDWH FRPPHUFH WKH GH &LU    KROGLQJ WKDW H[WRUWLRQ GLUHFWHG DJDLQVW DQ PLQLPLVFKDUDFWHURI LQGLYLGXDOLQVWDQFHVDULVLQJXQGHUWKH LQGLYLGXDO GRHV QRW DIIHFW LQWHUVWDWH FRPPHUFH ZKHUH WKH VWDWXWH LV RI QR FRQVHTXHQFHl ,G FLWLQJ 8QLWHG 6WDWHV Y SD\RII GRHV QRW GHSOHWH WKH DVVHWV RI DQ HQWLW\ HQJDJHG LQ LQWHUVWDWHFRPPHUFHDQGQRRWKHUFRQQHFWLRQZLWKLQWHUVWDWH  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

FRPPHUFHH[LVWV VHHDOVR8QLWHG6WDWHVY'H3DULDV 86&† VWDWHVLQSHUWLQHQWSDUW )G   WK &LU    FLWLQJ 0DWWVRQ IRU WKLV SURSRVLWLRQ RYHUUXOHGRQRWKHUJURXQGVE\8QLWHG6WDWHVY D :KRHYHULQDQ\ZD\RUGHJUHHREVWUXFWVGHOD\VRU .DSODQ)G WK&LU  DIIHFWV FRPPHUFH RU WKH PRYHPHQW RI DQ\ DUWLFOH RU FRPPRGLW\LQFRPPHUFHE\UREEHU\RUDWWHPSWVRU 7KH FRQFOXVLRQV RI RXU VLVWHU FLUFXLWV DUH EROVWHUHG E\ FRQVSLUHV WR GR VR RU FRPPLWV RU WKUHDWHQV SK\VLFDO /RSH]7KH+REEV$FWjVGHPLQLPLVVWDQGDUGVXUYLYHV/RSH] YLROHQFH WR DQ\ SHUVRQ RU SURSHUW\ LQ IXUWKHUDQFH RI D E\YLUWXHRIWKHDJJUHJDWLRQSULQFLSOH%XWWKH/RSH]&RXUW SODQRUSXUSRVHWRGRDQ\WKLQJLQYLRODWLRQRIWKLVVHFWLRQ GHFOLQHG WR DSSO\ WKH DJJUHJDWLRQ SULQFLSOH LQ FRQMXQFWLRQ VKDOOEHILQHGXQGHUWKLVWLWOHRULPSULVRQHGQRWPRUHWKDQ ZLWKORQJFKDLQVRIFDXVDO LQIHUHQFHWKDWZRXOGKDYHEHHQ WZHQW\\HDUVRUERWK QHFHVVDU\ WR DUULYH DW D VXEVWDQWLDO HIIHFW RQ LQWHUVWDWH FRPPHUFH  7KXV ZKHQ WKH 8QLWHG 6WDWHV DUJXHG WKDW JXQ 86&†  D ,QRUGHUWRSUHYDLOXQGHUD+REEV$FW SRVVHVVLRQLQVFKRRO]RQHVZRXOGLQWKHDJJUHJDWHUHVXOWLQ YLRODWLRQ WKH *RYHUQPHQW PXVW SURYH WZR HOHPHQWV YLROHQWFULPHZKLFKZRXOGUHVXOWLQFRVWVZKLFKZRXOGDIIHFW   LQWHUIHUHQFH ZLWK LQWHUVWDWH FRPPHUFH ZKLFK LV D WKHQDWLRQDOHFRQRP\WKURXJKWKHPHFKDQLVPRILQVXUDQFH MXULVGLFWLRQDO LVVXH  DQG   WKH VXEVWDQWLYH FULPLQDO DFW WKH &RXUW UHVSRQGHG   m7R XSKROG WKH *RYHUQPHQWjV ZKLFKLQWKHLQVWDQWFDVHLVUREEHU\6WLURQHY8QLWHG6WDWHV FRQWHQWLRQV KHUH ZH ZRXOG KDYH WR SLOH LQIHUHQFH XSRQ 86    LQIHUHQFH LQ D PDQQHU WKDW ZRXOG ELG IDLU WR FRQYHUW FRQJUHVVLRQDO DXWKRULW\ XQGHU WKH &RPPHUFH &ODXVH WR D :DQJ GRHV QRW DUJXH WKDW WKH +REEV $FW LV JHQHUDO SROLFH SRZHU RI WKH VRUW UHWDLQHG E\ WKH 6WDWHVl XQFRQVWLWXWLRQDO7KH+REEV$FWjVFRQVWLWXWLRQDOLW\KDVEHHQ /RSH]  86 DW   VHH DOVR $/$ 6FKHFWHU 3RXOWU\ UHSHDWHGO\XSKHOG8QLWHG6WDWHVY9DOHQ]HQR)G &RUSY8QLWHG6WDWHV 86     &DUGR]R  WK &LU     :DQJ DOVR GRHV QRW FKDOOHQJH WKH s FRQFXUULQJ  m7KHUH LV D YLHZ RI FDXVDWLRQ WKDW ZRXOG UREEHU\ HOHPHQW RI KLV FRQYLFWLRQ XQGHU WKH +REEV $FW REOLWHUDWHWKHGLVWLQFWLRQEHWZHHQZKDWLVQDWLRQDODQGZKDWLV :DQJ FODLPV WKDW VLQFH WKH 6XSUHPH &RXUWjV GHFLVLRQ LQ ORFDOLQWKHDFWLYLWLHVRIFRPPHUFH$FWLYLWLHVORFDOLQ 8QLWHG6WDWHVY/RSH]86    WKHSURSHUWHVW WKHLU LPPHGLDF\ GR QRW EHFRPH LQWHUVWDWH DQG QDWLRQDO IRUWKHMXULVGLFWLRQDOHOHPHQWLQDIHGHUDOVWDWXWHLVZKHWKHU EHFDXVHRIGLVWDQWUHSHUFXVVLRQVl sXVWWKLVVRUWRImEXWWHUIO\ WKHDFWLYLW\mVXEVWDQWLDOO\DIIHFWVlLQWHUVWDWHFRPPHUFH,GDW HIIHFWlWKHRU\RIFDXVDWLRQZRXOGEHUHTXLUHGWRILQGOLDELOLW\    8QGHU WKLV VWDQGDUG :DQJ FODLPV WKDW WKHUH LV LQWKHJUHDWPDMRULW\RI+REEV$FWFDVHVLQZKLFKWKHYLFWLP LQVXIILFLHQWHYLGHQFHWRVXSSRUWKLVFRQYLFWLRQ,G LVDSULYDWHFLWL]HQ6HHsDPHV*OHLFN&KDRV 0DNLQJD 7KH *RYHUQPHQW FLWHV SUH/RSH] FDVHV WR VXSSRUW LWV DUJXPHQW WKDW LQ WKLV &LUFXLW RQO\ D GH PLQLPLV HIIHFW RQ  LQWHUVWDWHFRPPHUFHLVUHTXLUHGWRVXSSRUWDFRQYLFWLRQXQGHU 7KLV PLJKW DOVR EH YLHZHG DV WKH mGRJ GRJ ELWH SLJl WKHRU\ RI WKH+REEV$FW6HHHJ8QLWHG6WDWHVY+DUGLQJ)G FDXVDWLRQ 6HH 7KH /LWWOH 2OG :RPDQ DQG +HU 3LJ LQ 7KH 7DOO %RRN RI 1XUVHU\ 7DOHV     7KH OLWWOH ROG ZRPDQ KDG EHHQ VW\PLHG LQ KHU   WK&LU  3ULRUWR/RSH]WKLV&LUFXLWKHOGWKDW DWWHPSW WR JHW KRPH EHFDXVH KHU UHFDOFLWUDQW SLJ UHIXVHG WR FURVV D VWLOH WKHUH LV QR UHTXLUHPHQW WKDW WKHUH EH DQ DFWXDO HIIHFW RQ 6R WKH ROG ZRPDQ JDYH ZDWHU WR D KD\PDNHU IRU D ZLVS RI KD\ WR JLYH WR LQWHUVWDWH FRPPHUFH EXW RQO\ D VKRZLQJ WKDW WKHUH EH D D FRZ IRU VRPH PLON WR LQGXFH D FDW WR EHJLQ WR NLOO D UDW WKDW EHJDQ WR UHDOLVWLF SUREDELOLW\ WKDW WKH DFWLYLW\ ZRXOG KDYH DIIHFWHG JQDZ D URSH WKDW EHJDQ WR KDQJ D EXWFKHU ZKR EHJDQ WR NLOO DQ R[ ZKR EHJDQ WR GULQN VRPH ZDWHU WKDW EHJDQ WR TXHQFK D ILUH WKDW EHJDQ WR EXUQ LQWHUVWDWHFRPPHUFH8QLWHG6WDWHVY%URZQ  )G D VWLFN WKDW EHJDQ WR EHDW WKH GRJ ZKR EHJDQ WR ELWH WKH SLJ ZKR MXPSHG  WK&LU   RYHU WKH VWLOH LQ D IULJKW ,G DW  :KLOH WKLV VHTXHQFH RI HYHQWV JRW WKH  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ

DQGKLVIDPLO\KDGEHHQVXEMHFWHGWRYLROHQFHDQGWKUHDWVWKDW 1HZ6FLHQFH    GLVFXVVLQJWKHSDUDEOHRIWKHIODSSLQJ :DQJKDGEHHQWUHDWHGEDGO\E\WKHFULPLQDOMXVWLFHV\VWHPLQ RIDEXWWHUIO\ VZLQJVWKDWFUHDWHVDPLQRUDLUFXUUHQWLQ&KLQD WKLVFRXQWU\DQGWKDW:DQJKDGDSUHYLRXVO\FOHDQUHFRUGDQG WKDWDGGVWRWKHDFFXPXODWLYHHIIHFWLQJOREDOZLQGV\VWHPV WKH DFW DSSHDUHG DEHUUDWLRQDO  :DQJ ZDV VHQWHQFHG WR  WKDWHQGVZLWKDKXUULFDQHLQWKH&DULEEHDQ 3HU/RSH]D PRQWKV RQ &RXQWV , DQG ,9 IROORZHG E\ D PDQGDWRU\  VPDOOVXPVWROHQIURPDSULYDWHLQGLYLGXDOGRHVQRWWKURXJK PRQWKVHQWHQFHRQ&RXQW,,WREHVHUYHGFRQVHFXWLYHO\IRUD DJJUHJDWLRQDIIHFWLQWHUVWDWHFRPPHUFHPHUHO\EHFDXVHWKH WRWDOWHUPRIPRQWKV LQGLYLGXDOKDSSHQVWREHDQHPSOR\HHRIDQDWLRQDOFRPSDQ\ RU KDSSHQV WR EH RQ KLV ZD\ WR D VWRUH RU KDSSHQV WR EH ,,$1$/<6,6 FDUU\LQJSURFHHGVIURPDUHVWDXUDQW $ 6WDQGDUGRI5HYLHZ 7KLV LV QRW WR VD\ WKDW FULPLQDO DFWV GLUHFWHG DW SULYDWH FLWL]HQVZLOOQHYHUFUHDWHMXULVGLFWLRQXQGHUWKH+REEV$FW :DQJFODLPVWKHUHZDVLQVXIILFLHQWHYLGHQFHWRFRQYLFWKLP 7KH IHGHUDO FRXUWV KDYH DFNQRZOHGJHG IRU H[DPSOH WKDW XQGHUWKH+REEV$FW86&† LQ&RXQW,DQGDVDQ YLFWLPL]DWLRQ RI D ODUJH QXPEHU RI LQGLYLGXDOV RU DLGHU DQG DEHWWRU RQ WKH ILUHDUP FKDUJH LQ &RXQW ,, YLFWLPL]DWLRQRIDVLQJOHLQGLYLGXDOIRUDYHU\ODUJHVXPFDQ ,QVXIILFLHQF\ RI HYLGHQFH FODLPV DUH GHWHUPLQHG E\ KDYHWKHSRWHQWLDOGLUHFWO\WRDIIHFWLQWHUVWDWHFRPPHUFH6HH FRQVLGHULQJmZKHWKHUDIWHUYLHZLQJWKHHYLGHQFHLQWKHOLJKW HJ8QLWHG6WDWHVY)DUUHOO)G WK&LU PRVWIDYRUDEOHWRWKHSURVHFXWLRQDQ\UDWLRQDOWULHURIIDFW    KROGLQJWKDWH[WRUWLRQGHPDQGRImZRXOG FRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWVRIWKHFULPHEH\RQG KDYH DIIHFWHG LQWHUVWDWH FRPPHUFH WR D OHJDOO\ FRJQL]DEOH DUHDVRQDEOHGRXEWl8QLWHG6WDWHVY%URZQ  )G GHJUHHl %XWZKHQWKH*RYHUQPHQWVHHNVWRVDWLVI\WKH$FWjV WK&LU   TXRWLQJsDFNVRQY9LUJLQLD86 MXULVGLFWLRQDO QH[XV E\ VKRZLQJ D FRQQHFWLRQ EHWZHHQ DQ      LQGLYLGXDO YLFWLP DQG D EXVLQHVV HQJDJHG LQ LQWHUVWDWH FRPPHUFHWKDWFRQQHFWLRQPXVWEHDVXEVWDQWLDORQHnQRW :DQJDOVRFODLPVWKDWWKHGLVWULFWFRXUWLQFRUUHFWO\DSSOLHG RQHWKDWLVIRUWXLWRXVRUVSHFXODWLYH:HKDYHVXJJHVWHGWKDW WKHFRQVSLUDF\WKHRU\VHWIRUWKLQ3LQNHUWRQY8QLWHG6WDWHV WKH *RYHUQPHQW PLJKW PDNH VXFK D VKRZLQJ E\ 86   E\ZHLJKLQJWKHHYLGHQFHIRU GHPRQVWUDWLQJWKDWWKHGHIHQGDQWNQHZRIRUZDVPRWLYDWHG FRQYLFWLRQ XQGHU  86& †  F   ZKHUH KH ZDV QRW E\WKHLQGLYLGXDOYLFWLPjVFRQQHFWLRQWRLQWHUVWDWHFRPPHUFH FKDUJHG ZLWK FRQVSLUDF\  7KLV LVVXH LV D TXHVWLRQ RI ODZ 6HH8QLWHG6WDWHVY0LOOV)G  WK&LU UHYLHZDEOH XQGHU D GH QRYR VWDQGDUG  8QLWHG 6WDWHV Y KROGLQJWKDWVROLFLWDWLRQRIEULEHVIURPLQGLYLGXDOVJDYHULVH *UDYHV)G WK&LU   WR IHGHUDO MXULVGLFWLRQ XQGHU WKH +REEV $FW EHFDXVH WKH GHIHQGDQWVmKDGDFWXDONQRZOHGJHWKDWWKHEULEHPRQH\ZRXOG % 7KH+REEV$FW &RXQW, EH REWDLQHG WKURXJK ORDQV PDGH LQ LQWHUVWDWH FRPPHUFHl  :DQJFODLPVWKDWWKHUHLVLQVXIILFLHQWSURRIRQWKHUHFRUG 2WKHUDYHQXHVRISURRIZLOOQRGRXEWSUHVHQWWKHPVHOYHV:H WR VXSSRUW D ILQGLQJ RI JXLOW XQGHU  86& †   WKH ZRXOGDQWLFLSDWHKRZHYHUWKDWWKHmRYHUZKHOPLQJPDMRULW\l m+REEV$FWl EHFDXVHWKH*RYHUQPHQWIDLOHGWRVKRZWKDWWKH RI +REEV $FW FDVHV EURXJKW EHIRUH WKH IHGHUDO FRXUWV ZLOO UREEHU\RIWKHYLFWLPVLQWKLVFDVHKDGDQHIIHFWRQLQWHUVWDWH FRPPHUFHVXIILFLHQWWRPHHWWKHMXULVGLFWLRQDOQH[XVUHTXLUHG XQGHUVHFWLRQ  OLWWOH ROG ZRPDQ KRPH WKDW QLJKW VXFK D FDXVDO FKDLQ ZLOO QRW VXIILFH WR SXW 0U :DQJ LQ IHGHUDO FRXUW  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

FRQWLQXH WR EH RQHV LQ ZKLFK WKH YLFWLPV DUH EXVLQHVVHV URRPDIHZWLPHVWRFRQIHUZLWKVRPHRQHHOVHLQD&KLQHVH GLUHFWO\HQJDJHGLQLQWHUVWDWHFRPPHUFH GLDOHFW ZKLFK KH GLG QRW XQGHUVWDQG  +H UHWXUQHG WR WKH EHGURRPWRDVN0U7VDLDERXWWKHPRQH\%HIRUHWKHPHQ ,QWKHSUHVHQWFDVHDSSOLFDWLRQRIWKHVHSULQFLSOHVGLFWDWHV OHIW 0U 7VDL ZDV WDNHQ IURP WKH EHGURRP FORVHW DQG UHYHUVDORI:DQJjVFRQYLFWLRQZLWKUHVSHFWWR&RXQW,:DQJ KDQGFXIIHGWRDSLSHLQWKHODXQGU\URRP7KHPHQZHUHLQ UREEHGSULYDWHFLWL]HQVLQDSULYDWHUHVLGHQFHRIDSSUR[LPDWHO\ WKHKRXVHIRUDERXWWZHQW\WRWKLUW\PLQXWHV0U7VDLZDV  D PHUH  RI ZKLFK EHORQJHG WR D UHVWDXUDQW HYHQWXDOO\DEOHWRRSHQWKHJDUDJHGRRUDQGFDOOWRDQHLJKERU GRLQJ EXVLQHVV LQ LQWHUVWDWH FRPPHUFH  7KH *RYHUQPHQW ZKR WKHQ DOHUWHG WKH SROLFH  7KH 7VDLVj 7R\RWD &RUROOD PDGH QR VKRZLQJ RI D VXEVWDQWLDO FRQQHFWLRQ EHWZHHQ WKH DXWRPRELOHZDVVWROHQ,WZDVUHFRYHUHGWKHIROORZLQJGD\DW UREEHU\DQGWKHUHVWDXUDQWjVEXVLQHVVDQGWKHGLVWULFWFRXUW WKH$WODQWDDLUSRUW KHOGWKDWm>W@KHUHLVQRHYLGHQFHRIDQ>H@IIHFWRQLQWHUVWDWH FRPPHUFHl,QWKHDEVHQFHRIVXFKDVKRZLQJWKHUHLVQR 'XULQJWKH7VDLVjRUGHDODSROLFHRIILFHUZDVFRQGXFWLQJDQ UHDOLVWLFSUREDELOLW\WKDWWKHDJJUHJDWHRIVXFKFULPHVZRXOG LQYHVWLJDWLRQRIDJUHHQ)RUG7HPSRRZQHGE\$JHQF\5HQW VXEVWDQWLDOO\DIIHFWLQWHUVWDWHFRPPHUFH,QGHHGXSKROGLQJ $&DU SDUNHG DERXW  PLOHV IURP WKH 7VDLVj KRPH  7KLV IHGHUDOMXULVGLFWLRQRYHU:DQJjVRIIHQVHZRXOGLQHVVHQFH SROLFHRIILFHUZDVVXPPRQHGWRWKH7VDLVjKRPH+HODWHU DFNQRZOHGJHDJHQHUDOIHGHUDOSROLFHSRZHUZLWKUHVSHFWWR UHWXUQHG WR WKH JUHHQ )RUG 7HPSR DQG GHWHUPLQHG IURP D WKH FULPHV RI UREEHU\ DQG H[WRUWLRQ  7KH 6XSUHPH &RXUW UHQWDODJUHHPHQWIRXQGLQWKHFDUWKDWWKHFDUKDGEHHQUHQWHG KRZHYHUKDVWKLV7HUPUHPLQGHGXVWKDW E\:DQJXVLQJDFUHGLWFDUG$SDLURIKDQGFXIIVERWWOHG ZDWHUDQGSDUWLDOO\HDWHQVDQGZLFKHVZHUHIRXQGLQWKHUHQWDO 7KH&RQVWLWXWLRQUHTXLUHVDGLVWLQFWLRQEHWZHHQZKDWLV FDU:DQJODWHUUHSRUWHGWRWKHFDUUHQWDOFRPSDQ\WKDWWKH WUXO\QDWLRQDODQGZKDWLVWUXO\ORFDO,QUHFRJQL]LQJWKLV FDUKDGEHHQVWROHQ:DQJjVFUHGLWFDUGUHFRUGVLQGLFDWHWKDW IDFWZHSUHVHUYHRQHRIWKHIHZSULQFLSOHVWKDWKDVEHHQ RQWKHGDWHWKH7VDLVZHUHUREEHGKLVFUHGLWFDUGZDVXVHGWR FRQVLVWHQWVLQFHWKH&ODXVHZDVDGRSWHG7KHUHJXODWLRQ PDNH SXUFKDVHV DW D JDV VWDWLRQ DQG FRQYHQLHQFH PDUNHW DQGSXQLVKPHQWRILQWUDVWDWHYLROHQFHWKDWLVQRWGLUHFWHG ORFDWHGDIHZPLOHVIURPWKH7VDLVj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jKRPHZHUHIRXQGLQ:DQJjVZDOOHW $IWHU:DQJZDLYHGKLVULJKWWRDWULDOE\MXU\DEHQFKWULDO ZDVKHOG:DQJZDVIRXQGJXLOW\RQ&RXQWV,,,DQG,97KH  7KLV ILQGLQJ ZDV SUHFHGHG E\ WKH VWDWHPHQW WKDW mWKHUH LV QR HIIHFW GLVWULFW MXGJH DFTXLWWHG :DQJ RQ &RXQW ,,, WKH FDUMDFNLQJ RQ LQWHUVWDWH FRPPHUFH EH\RQG DQ DEVROXWH GH PLQLPLV HIIHFW RI l FRXQW7KHGLVWULFWMXGJHGHSDUWHGWHQOHYHOVGRZQZDUGIURP ,W LV FOHDU KRZHYHU WKDW WKH GLVWULFW FRXUW EHOLHYHGnFRUUHFWO\nWKDW WKH WKH7RWDO2IIHQVH/HYHORIWR/HYHOVWDWLQJWKDW:DQJ HIIHFW KHUH GLG QRW ULVH HYHQ WR WKH OHYHO RI GH PLQLPLV  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

7VDLVjHPSOR\HHVKDGUHFUXLWHG:DQJLQ$WODQWDWRVXEVWLWXWH WKDW :DQJjV FDVH EH KHDUG LQ VWDWH FRXUW  :H WKHUHIRUH IRUDZRUNHURQOHDYH UHYHUVHKLV+REEV$FWFRQYLFWLRQ 0UV7ULFLD7VDLZKRZRUNVDWWKHUHVWDXUDQWWHVWLILHGWKDW ,,, KHU KXVEDQG 3DXO 7VDL FDPH HYHU\ QLJKW WR FORVH WKH UHVWDXUDQW2Q6HSWHPEHU DIWHUWKH7VDLVFORVHGWKH :DQJQH[WFKDOOHQJHVKLVFRQYLFWLRQIRUXVLQJDILUHDUPLQ UHVWDXUDQWWKH\GURYHKRPHLQVHSDUDWHFDUV0UV7VDLKDG UHODWLRQ WR D FULPH RI YLROHQFH LQ YLRODWLRQ RI  86& LQFDVKIURPWKHGD\jVUHFHLSWVZKLFKVKHSODQQHG †  F    7KH GLVWULFW FRXUW KHOG :DQJ OLDEOH IRU KLV WRGHSRVLWLQWKHEDQNWKHQH[WGD\7KH7VDLVDUULYHGDWKRPH DFFRPSOLFHj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mWRDSUDFWLFDOFHUWDLQW\lWKDWKLV DQGWDNHQLQWRWKHEDWKURRP7KHUH0UV7VDLZDVWROGWR DFFRPSOLFHZDVFDUU\LQJDJXQ6HH8QLWHG6WDWHVY0RUURZ VKXW XS RU VKH ZRXOG EH NLOOHG  +HDULQJ WKH PDQ VSHDN )G WK&LU   HQEDQF  &KLQHVH0UV7VDLUHFRJQL]HGWKHYRLFHDV:DQJjVZKRP VKHNQHZDV:DQJ3RQJ7KHPDQZDVZHDULQJDPDVNDQG :H QHHG QRW UHVROYH WKHVH WKRUQ\ TXHVWLRQV  6HFWLRQ WKH URRP ZDV GDUN  7KH PDQ DVNHG KHU DERXW WKH PRQH\  F   SURYLGHV IRU D WHUP RI LPSULVRQPHQW IRU mDQ\ 0UV7VDLWROGKLPWKHORFDWLRQRIWKHPRQH\,QDGGLWLRQWR SHUVRQZKRGXULQJDQGLQUHODWLRQWRDQ\FULPHRIYLROHQFH WKHLQFDVKIURPWKHUHVWDXUDQWLQFDVK IRUZKLFKWKHSHUVRQPD\EHSURVHFXWHGLQDFRXUWRIWKH IURP WKH 7VDLVj SHUVRQDO DFFRXQW ZDV RQ WKH GLQLQJ URRP 8QLWHG 6WDWHV XVHV RU FDUULHV D ILUHDUP    l HPSKDVLV WDEOH  0UV 7VDL ZDV WKHQ KDQGFXIIHG WR D IL[WXUH LQ WKH VXSSOLHG 7KLVFLUFXLWKDVKHOGWKDWWKLVODQJXDJHUHTXLUHV EDWKURRPDQGWKHPDQOHIWWKHURRP7KHPDQUHWXUQHGDIHZ WKDWmWKHGHIHQGDQWKDYHFRPPLWWHGDYLROHQWFULPHIRUZKLFK WLPHVWRWKHEDWKURRPWRDVN0UV7VDLZKHUHWKHPRQH\ZDV KHPD\EHSURVHFXWHGLQIHGHUDOFRXUWl6PLWK)GDW ORFDWHG0UV7VDLKHDUGWKHPDQFRQIHUZLWKDQRWKHUSHUVRQ  HPSKDVLV RPLWWHG   $QG LQ 6PLWK ZH FLWHG ZLWK LQ D ORZ YRLFH  $IWHU 0UV 7VDL WROG WKH PDQ ZKHUH WKH DSSURYDO WKH KROGLQJ RI WKH )LIWK &LUFXLW LQ &ROOLQV WKDW D ZDVORFDWHGWKHWZRPHQOHIWWKHKRXVH †  F FRQYLFWLRQFDQQRWVWDQGZKHQWKHWULDOFRXUWKDGQR MXULVGLFWLRQRYHUWKHSUHGLFDWHFULPH6HH&ROOLQV)GDW 0U7VDLWHVWLILHGWKDWVKRUWO\DIWHU0UV7VDLHQWHUHGWKH  m6HFWLRQ  F  UHTXLUHVWKDWWKHXQGHUO\LQJRIIHQVH KRXVHKHKHDUGKHUVFUHDPLQJ+HZDVDWWDFNHGDVVRRQDVKH EH D IHGHUDO FULPH DQG DV WKH UREEHU\>@ FRQYLFWLRQ IRU HQWHUHGWKHKRXVHDQGWKHQKLWZLWKDZHDSRQ7KHPDQZKR YLRODWLRQRIVHFWLRQ  D LVQRZYRLGHGWKHFRQYLFWLRQIRU DWWDFNHGKLPWRRN0U7VDLWRWKHEHGURRPDQGKDQGFXIIHG XQODZIXOXVHRIDILUHDUPGXULQJWKDWUREEHU\DOVRPXVWEH KLPWRDUDLO+HWKUHDWHQHG0U7VDLDQGDVNHGIRUPRQH\ UHYHUVHGl %HFDXVH:DQJjVUREEHU\GLGQRWKDYHHYHQDGH 0U7VDLVDZWKDWWKLVPDQKDGDVPDOOJXQZKLFKKHXVHGWR PLQLPLVHIIHFWRQLQWHUVWDWHFRPPHUFHWKHFULPHFRXOGQRW KLW0U7VDL0U7VDLWHVWLILHGWKDWKLVDWWDFNHUDOVROHIWWKH SURSHUO\KDYHEHHQSURVHFXWHGLQIHGHUDOFRXUW$FFRUGLQJO\ :DQJjV†  F FRQYLFWLRQPXVWDOVREHUHYHUVHG

 7KLV PDQ ZDV QHYHU LGHQWLILHG RU DSSUHKHQGHG  8QLWHG6WDWHVY:DQJ 1R   1R   8QLWHG6WDWHVY:DQJ 

BBBBBBBBBBBBBBBBBBBBBBB 6WDWHVE\SURIHVVLRQDOVPXJJOHUVFDOOHGmWKH6QDNHKHDGVlIRU DIHHRI2QFHLQ$PHULFDWKHPRQH\KDGWREH &21&855(1&( UHSDLGZLWKLQWHUHVW7KH6QDNHKHDGVXVHSK\VLFDOWKUHDWV BBBBBBBBBBBBBBBBBBBBBBB DQGDVVDXOWVWRHQIRUFHWKHFROOHFWLRQRIVXFKIHHVLQFOXGLQJ WKUHDWVDQGIRUFHDJDLQVWIDPLO\PHPEHUVUHPDLQLQJLQ&KLQD '(1,6(3$*(+22''LVWULFWsXGJHFRQFXUULQJ)RUWKH 7KH6QDNHKHDGVDUHDEOHWRORFDWHWKHVHLPPLJUDQWVQHDUO\ UHDVRQVVHWIRUWKEHORZ,FRQFXULQWKHMXGJPHQWWKDW:DQJj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†   XVLQJDQGFDUU\LQJDILUHDUP WHVWLILHGWKDWLQ JDQJPHPEHUVFDPHLQWRDUHVWDXUDQW LQ UHODWLRQ WR D FULPH RI YLROHQFH UREEHU\  LQ YLRODWLRQ RI ZKHUH VKH DQG :DQJ ZRUNHG GHPDQGLQJ  IURP 86&†  F   FDUMDFNLQJLQYLRODWLRQRI86& :DQJ*DQJPHPEHUVDOVRHQWHUHGWKHDSDUWPHQWRI3LQJDQG † DQG WUDQVSRUWLQJDVWROHQPRWRUYHKLFOHLQLQWHUVWDWH :DQJDQGGHPDQGHGIURP:DQJDQGEHDWKLPZLWK FRPPHUFHLQYLRODWLRQRI86&†:DQJZDVDOVR D FRUGOHVV WHOHSKRQH ZKHQ KH GLG QRW SURGXFH WKH PRQH\ FKDUJHGZLWKDLGLQJDQGDEHWWLQJXQGHU86&†DVWRDOO $IWHUWKLVLQFLGHQW:DQJDQG3LQJZHQWLQWRKLGLQJDQGIOHG IRXUFRXQWV WR $WODQWD EXW WKH WKUHDWV DQG YLVLWV IURP WKH 6QDNHKHDGV FRQWLQXHG  3LQJ VWDWHG WKDW JDQJ PHPEHUV FDPH WR WKHLU 7KH FDVH ZDV WULHG ZLWKRXW D MXU\  7KH GLVWULFW FRXUW DSDUWPHQWLQ$WODQWDGHPDQGLQJIURP:DQJ2Q JUDQWHG:DQJjVPRWLRQIRUMXGJPHQWRIDFTXLWWDORQ&RXQW,,, DQRWKHURFFDVLRQJDQJPHPEHUVEURNHGRZQ:DQJjVGRRU WKHFDUMDFNLQJFRXQW RIWKHLQGLFWPHQW:DQJZDVIRXQG DWWDFNHGKLPDQGGHPDQGHG 7KHJDQJPHPEHUV JXLOW\RQWKHUHPDLQLQJWKUHHFRXQWV:DQJQRZDSSHDOVKLV DOVR PDGH WKUHDWV WKDW :DQJjV IDPLO\ LQ &KLQD ZRXOG EH FRQYLFWLRQRQ&RXQWV,DQG,,:DQJGRHVQRWFKDOOHQJHKLV KDUPHGLIKHGLGQRWSD\3LQJFRQWDFWHG:DQJjVVLVWHULQ FRQYLFWLRQRQ&RXQW,9$VWR&RXQW,WKHUREEHU\FKDUJH &KLQDWRZDUQWKHIDPLO\RIWKH6QDNHKHDGVjWKUHDWVEXWWKH :DQJ FODLPV WKDW WKH HYLGHQFH ZDV LQVXIILFLHQW WR VKRZ D VLVWHULQIRUPHG3LQJWKDWWKHJDQJKDGDOUHDG\mYLVLWHGl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sXQHRUsXO\RI :DQJZRUNHGIRUWKUHHZHHNVDW DLGHUDQGDEHWWRURQ&RXQW,, WKH &KLQD 6WDU UHVWDXUDQW LQ &RRNHYLOOH 7HQQHVVHH  7KH &KLQD6WDULVRZQHGE\D&KLQHVH$PHULFDQFRXSOH7ULFLD :DQJLVDFLWL]HQRIWKH3HRSOHjV5HSXEOLFRI&KLQDIURP DQG3DXO7VDLZKRUHVLGHLQ$OJRRG7HQQHVVHH2QHRIWKH WKHFLW\RI)X]KRX)XMLDQ3URYLQFH+HLOOHJDOO\HQWHUHGWKH 8QLWHG6WDWHVLQ :DQJZDVVPXJJOHGLQWRWKH8QLWHG