5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  8QLWHG6WDWHVY0LWFKHOO 1R  3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

7KH8QLWHG6WDWHVDUJXHVWKDWWKHGLVWULFWFRXUWjVIDLOXUHWR )LOH 1DPH DS

FRPSO\ ZLWK 5XOH  F  $  GRHV QRW UHTXLUH D QHZ VHQWHQFLQJKHDULQJXQOHVV0LWFKHOOFDQVKRZDFWXDOSUHMXGLFH DV D UHVXOW RI WKH HUURU  :H GLVDJUHH  m,I WKH SURFHGXUHV 81,7('67$7(6&28572)$33($/6 >HVWDEOLVKHGE\5XOH F  $ @DUHQRWIROORZHGWKLVFRXUW )257+(6,;7+&,5&8,7 VKRXOGUHPDQGIRUUHVHQWHQFLQJl8QLWHG6WDWHVY6FKXOW] BBBBBBBBBBBBBBBBB )G WK&LU   :H KDYH SUHYLRXVO\ UHFRJQL]HG WKH VLJQLILFDQW UROH WKDW 5XOH VUHTXLUHPHQWVSOD\LQHQVXULQJDMXVWDGMXGLFDWLRQDW 81,7(' 67$7(6 2) $0(5,&$ ; WKHVHQWHQFLQJKHDULQJE\UHTXLULQJOLWHUDOFRPSOLDQFHZLWK 3ODLQWLII$SSHOOHH  5XOH F  6HH8QLWHG6WDWHVY7DFNHWW)G   WK &LU     7KH OLWHUDO FRPSOLDQFH UHTXLUHPHQW  1R  mKHOSVWRHQVXUHWKDWGHIHQGDQWVDUHVHQWHQFHGRQWKHEDVLVRI Y  DFFXUDWHLQIRUPDWLRQDQGSURYLGHVDFOHDUUHFRUGIRUDSSHOODWH !  FRXUWVSULVRQRIILFLDOVDQGDGPLQLVWUDWLYHDJHQFLHVZKRPD\ 52%(57 /(( 0,7&+(//  ODWHUEHLQYROYHGLQWKHFDVHl,GDW7KRVHFRQFHUQV 'HIHQGDQW$SSHOODQW  DUH QR OHVV SUHVHQW KHUH ZKHUH WKH GLVWULFW FRXUW IDLOHG WR  GHWHUPLQHZKHWKHU0LWFKHOOHYHQUHDGKLVSUHVHQWHQFHUHSRUW  PXFKOHVVZKHWKHUKHZDVDIIRUGHGWKHRSSRUWXQLW\WRGLVFXVV 1 LWZLWKKLVFRXQVHO $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW 2XUKROGLQJWKDWGLVWULFWFRXUWVPXVWOLWHUDOO\FRPSO\ZLWK IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 5XOH F  $ GRHVQRWDOWHURXUORQJKHOGUXOHWKDWWKH\ 1R n*HRUJH&6PLWK'LVWULFWsXGJH QHHGQRWDIILUPDWLYHO\LQTXLUHDVWRZKHWKHUDGHIHQGDQWKDV UHDG DQG GLVFXVVHG KLV SUHVHQWHQFH UHSRUW ZLWK FRXQVHO $UJXHG 0DUFK DOWKRXJKZHXUJHGLVWULFWFRXUWVWRGLVFRXUDJHQRQPHULWRULRXV DSSHDOVE\VLPSO\PDNLQJVXFKDQLQTXLU\DUHJXODUSDUWRIWKH 'HFLGHGDQG)LOHG 0DUFK  VHQWHQFHKHDULQJ%XWWKHIDFWWKDW5XOH F  $ LPSRVHV RQO\DPRGHVWEXUGHQRQGLVWULFWFRXUWVLQQRZD\UHOLHYHV %HIRUH 0$57,1&KLHIsXGJH 0225(&LUFXLWsXGJH  WKRVHFRXUWVRIWKHLUGXW\WRFRPSO\ZLWKWKH5XOHjVPDQGDWHV 7$512:'LVWULFWsXGJH 6HH8QLWHG6WDWHVY0DQQL)G WK&LU   +HUHWKHGLVWULFWFRXUWKDGDGXW\WRGHWHUPLQHWKDW0LWFKHOO DQG KLV DWWRUQH\ KDG UHDG DQG GLVFXVVHG 0LWFKHOOjV SUHVHQWHQFHUHSRUW7KHIDLOXUHWRGRVRUHTXLUHVUHVHQWHQFLQJ ,,, )RU WKH IRUHJRLQJ UHDVRQ ZH YDFDWH 0LWFKHOOjV VL[\HDU VHQWHQFHDQGUHPDQGIRUUHVHQWHQFLQJ 7KH +RQRUDEOH $UWKXU s 7DUQRZ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY0LWFKHOO 1R  1R  8QLWHG6WDWHVY0LWFKHOO 

BBBBBBBBBBBBBBBBB WKH SUHVHQWHQFH UHSRUW EXW GLG QRW DVN ZKHWKHU 0LWFKHOOjV FRXQVHOKDGGLVFXVVHGWKHUHSRUWZLWK0LWFKHOO7KHUHSRUW &2816(/ KDGFDOFXODWHGDQRIIHQVHOHYHORIWZHQW\WKUHHDQGDFULPLQDO KLVWRU\ FDWHJRU\ RI ,9 UHVXOWLQJ LQ D VHQWHQFLQJ UDQJH $5*8(' 'DYLGs*UDHII&ROXPEXV2KLRIRU$SSHOODQW EHWZHHQILYH\HDUVDQGWHQPRQWKVDQGVHYHQ\HDUVDQGWKUHH 0LFKDHO s %XUQV $66,67$17 81,7(' 67$7(6 PRQWKV0LWFKHOOjVFRXQVHOVWDWHGWKHUHZHUHQRREMHFWLRQV $77251(<&ROXPEXV2KLRIRU$SSHOOHH21%5,() DQG WKDW DOWKRXJK KH KDG VRPH FRQFHUQV DERXW WKH UHSRUW 'DYLGs*UDHII&ROXPEXV2KLRIRU$SSHOODQW0LFKDHOs mDIWHUDUHYLHZRIWKH)HGHUDO6HQWHQFLQJ*XLGHOLQHVDQGDIWHU %XUQV $66,67$17 81,7(' 67$7(6 $77251(< H[WHQVLYH GLVFXVVLRQV ZLWK 7LQD $QNURP LQ WKH 3UREDWLRQ &ROXPEXV2KLRIRU$SSHOOHH 'HSDUWPHQW>KHFRXOG@XQGHUVWDQGDQGDJUHHZLWKKRZVKH FDPHWRKHUHYDOXDWLRQRI WKLVSDUWLFXODUFDVHl0LWFKHOOjV BBBBBBBBBBBBBBBBB FRXQVHO WKHQ UHTXHVWHG WKDW WKH GLVWULFW FRXUW LPSRVH D VHQWHQFHmLQWKHPLQLPXPZLWKLQWKH*XLGHOLQHVWKDWDUHVHW 23,1,21 IRUWK E\ WKH 3UREDWLRQ 'HSDUWPHQW IRU VHYHUDO UHDVRQVl BBBBBBBBBBBBBBBBB UHODWLQJ WR 0LWFKHOOjV EDFNJURXQG  7KH GLVWULFW FRXUW %2<&( ) 0$57,1 s5 &KLHI sXGJH  5REHUW /HH VHQWHQFHG0LWFKHOOWRVL[\HDUV 0LWFKHOO DSSHDOV KLV VL[\HDU VHQWHQFH IRU SRVVHVVLRQ ZLWK ,, LQWHQW WR GLVWULEXWH FRFDLQH  )RU WKH IROORZLQJ UHDVRQ ZH 9$&$7(KLVVHQWHQFHDQG5(0$1'WRWKHGLVWULFWFRXUWIRU 0LWFKHOOUDLVHVIRXULVVXHVRQDSSHDODOORIZKLFKDGGUHVV UHVHQWHQFLQJ DOOHJHGHUURUDWWKHVHQWHQFLQJKHDULQJ1RQHWKHOHVVEHFDXVH ZHDJUHHZLWK0LWFKHOOjVDUJXPHQWWKDWWKHGLVWULFW FRXUWjV , IDLOXUHWRFRPSO\ZLWK)HGHUDO5XOHRI&ULPLQDO3URFHGXUH 2Q )HEUXDU\    )HGHUDO 'UXJ (QIRUFHPHQW  F  $ UHTXLUHVDQHZKHDULQJZHGHFOLQHWRDGGUHVVDQ\ $GPLQLVWUDWLRQ7DVN)RUFHDJHQWVUHFHLYHGLQIRUPDWLRQWKDW RI0LWFKHOOjVRWKHUFODLPHGHUURUV 0LWFKHOO D VXVSHFWHG GUXJ FRXULHU ZDV IO\LQJ LQWR WKH 8QGHU5XOH F  $ WKHGLVWULFWFRXUWPXVWmYHULI\WKDW &ROXPEXV2KLRDLUSRUWIURP/RV$QJHOHV$IWHU0LWFKHOO WKH GHIHQGDQW DQG WKH GHIHQGDQWjV FRXQVHO KDYH UHDG DQG GHSODQHGRIILFHUVDSSURDFKHGKLPLGHQWLILHGWKHPVHOYHVDQG GLVFXVVHGWKHSUHVHQWHQFHUHSRUWl7KHGLVWULFWFRXUWQHHGQRW DIWHU D IHZ PLQXWHV RI FRQYHUVDWLRQ DVNHG 0LWFKHOO IRU PDNH DQ DIILUPDWLYH LQTXLU\ VR ORQJ DV LW FDQ VRPHKRZ FRQVHQWWRVHDUFKKLVEDJ:KHQ0LWFKHOOWHQWDWLYHO\UHIXVHG GHWHUPLQHWKDWGHIHQGDQWDQGFRXQVHOKDYHUHDGDQGGLVFXVVHG WKHRIILFHUVDGYLVHGKLPWKH\KDGmPRUHLQIRUPDWLRQlDERXW WKHUHSRUW6HH8QLWHG6WDWHVY6WHYHQV)G KLP WKDQ KH UHDOL]HG  0LWFKHOO WKHQ DGPLWWHG KLV EDJ WK &LU     0LWFKHOOjV FRXQVHOjV DUJXPHQWV DW WKH FRQWDLQHG QDUFRWLFV DQG DFFRPSDQLHG WKH RIILFHUV WR DQ VHQWHQFLQJ KHDULQJ LQGLFDWHG ERWK WKDW KH KDG UHDG WKH DLUSRUWRIILFHZKHUHDVHDUFKUHYHDOHGILYHZUDSSHGSDFNDJHV SUHVHQWHQFH UHSRUW DQG WKDW KH DQG 0LWFKHOO KDG GLVFXVVHG FRQWDLQLQJDWRWDORIDOPRVWILYHSRXQGVRIFRFDLQH0LWFKHOO 0LWFKHOOjV EDFNJURXQG  7KH KHDULQJ WUDQVFULSW GRHV QRW VXEVHTXHQWO\SOHDGHGJXLOW\WRRQHFRXQWRISRVVHVVLRQZLWK KRZHYHUGHPRQVWUDWHWKDW0LWFKHOODQGKLVFRXQVHOmUHDGDQG LQWHQWWRGLVWULEXWHDFRQWUROOHGVXEVWDQFH GLVFXVVHGlWKHUHSRUWLWVHOI$FFRUGLQJO\WKHGLVWULFWFRXUW $WWKHVHQWHQFLQJKHDULQJRQ2FWREHUWKHGLVWULFWFRXUW FRXOGQRWKDYHPDGHVXFKDGHWHUPLQDWLRQDVUHTXLUHGE\5XOH DVNHGGHIHQVHFRXQVHOZKHWKHU0LWFKHOOKDGDQ\REMHFWLRQVWR  F  $