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

81,7(' 67$7(6 2) $0(5,&$ ;  3ODLQWLII$SSHOOHH   1R Y  !  :$/7(5 &2$72$0  'HIHQGDQW$SSHOODQW    1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R n'RQDOG&1XJHQW'LVWULFWsXGJH 6XEPLWWHG 0DUFK 'HFLGHGDQG)LOHG 0DUFK %HIRUH 0$57,1&KLHIsXGJH 0225(&LUFXLWsXGJH  7$512:'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ 21 %5,()   &KDUOHV ( )OHPLQJ )('(5$/ 38%/,& '()(1'(5j6 2)),&( &OHYHODQG 2KLR IRU $SSHOODQW

7KH +RQRUDEOH $UWKXU s 7DUQRZ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY&RDWRDP 1R

1DQF\ / .HOOH\ 81,7(' 67$7(6 $77251(< &OHYHODQG2KLRIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(11(/6210225(&LUFXLWsXGJH'HIHQGDQW $SSHOODQW :DOWHU &RDWRDP m&RDWRDPl  FKDOOHQJHV WKH GLVWULFWFRXUWjVGHFLVLRQWRUHYRNHKLVVHQWHQFHRISUREDWLRQ DQGVHQWHQFHKLPWRDWHUPRIIRXUPRQWKVjLPSULVRQPHQWDQG WZR \HDUVj VXSHUYLVHG UHOHDVH  :KLOH &RDWRDP DGPLWV WR YLRODWLQJWKHWHUPVRIKLVSUREDWLRQVSHFLILFDOO\KLVREOLJDWLRQ WRUHSRUWIRUSHULRGLFGUXJWHVWLQJDQGFRXQVHOLQJKHFRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG LQ LWV DSSOLFDWLRQ RI  86& † E  ZKLFKUHTXLUHVPDQGDWRU\SUREDWLRQUHYRFDWLRQ LI D GHIHQGDQW mUHIXVHV WR FRPSO\ ZLWK GUXJ WHVWLQJl DV LPSRVHGE\† D  :KLOH† D  XVHGWRUHTXLUH DGHIHQGDQWWRVXEPLWWRGUXJWHVWLQJDVDPDQGDWRU\FRQGLWLRQ RISUREDWLRQWKDWVHFWLRQZDVUHQXPEHUHGDQGLVQRZIRXQG DW  86& †  D    1HZ †  D   LPSRVHV D PDQGDWRU\FRQGLWLRQRISUREDWLRQRQGHIHQGDQWVFRQYLFWHGRI FULPHVRIGRPHVWLFYLROHQFHDQGUHTXLUHVWKHPWRDWWHQGDQ RIIHQGHUUHKDELOLWDWLRQSURJUDP $FFRUGLQJWR&RDWRDP† E  GRHVQRWDSSO\WRKLP EHFDXVHKHFRPPLWWHGWKHFULPHRIWKHIWRISXEOLFIXQGVQRW DFULPHRIGRPHVWLFYLROHQFH$VVHUWLQJWKDWWKHGLVWULFWFRXUW HUURQHRXVO\EHOLHYHGLWZDVUHTXLUHGWRUHYRNHKLVSUREDWLRQ XQGHU† E  &RDWRDPVHHNVDUHPDQGWRWKHGLVWULFW FRXUWIRUUHFRQVLGHUDWLRQRIKLVVHQWHQFH &RDWRDPjV UHDGLQJ RI WKH VWDWXWH ZKLOH IDLWKIXO WR WKH VWDWXWHjVSODLQODQJXDJHSURGXFHVDQDEVXUGUHVXOWLVDWRGGV ZLWK&RQJUHVVjVLQWHQWDQGLVWKHUHIRUHLQFRUUHFW:HKROG DVDPDWWHURIILUVWLPSUHVVLRQLQWKLVFLUFXLWWKDWWKHSURSHU UHDGLQJRI† E  UHTXLUHVSUREDWLRQUHYRFDWLRQIRUD GHIHQGDQWjVIDLOXUHWRVXEPLWWRGUXJWHVWLQJZKHQGUXJWHVWLQJ ZDVLPSRVHGDVDFRQGLWLRQRISUREDWLRQ%HFDXVHWKHGLVWULFW FRXUWSURSHUO\UHYRNHG&RDWRDPjVSUREDWLRQZKHWKHURUQRW 1R 8QLWHG6WDWHVY&RDWRDP 

LWV GHFLVLRQ ZDV EDVHG RQ D FRUUHFW XQGHUVWDQGLQJ RI † E  ZH$)),50WKHGLVWULFWFRXUWjVMXGJPHQW ,%$&.*5281' 2QsXQH  &RDWRDPSOHDGHGQRFRQWHVWWRRQHFRXQW RIWKHIWRISXEOLFIXQGVLQYLRODWLRQRI86&†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jV SUREDWLRQ  sRLQW $SSHQGL[ ms$l DW m,jPDOVRWURXEOHGE\WKHIDFWWKDW, WKLQNWKDWLI\RXYLRODWHWKHWHUPRISUREDWLRQE\LQWHQWLRQDOO\ IDLOLQJWRVXEPLWWRDGUXJXULQDO\VLVWKDWWKHVWDWXWHUHTXLUHV UHYRFDWLRQ$QG,WKLQNWKDWLVFRUUHFWDQG,GRQjWWKLQN, KDYHDQ\GLVFUHWLRQDVWRWKDWDWWKLVSRLQWl   7KHGLVWULFW MXGJHWKHQUHYRNHG&RDWRDPjVSUREDWLRQDQGVHQWHQFHGKLP WRIRXUPRQWKVRILQFDUFHUDWLRQDQGWZR\HDUVRIVXSHUYLVHG UHOHDVHEXWLQYLWHGFRXQVHOWREULHIWKHTXHVWLRQZKHWKHUKH ZDVUHTXLUHGWRUHYRNHSUREDWLRQRUZKHWKHUWKHLVVXHZDV FRPPLWWHGWRKLVGLVFUHWLRQ

 &RDWRDPjV ODZ\HU SRLQWHG RXW DQG LW ZDV QRW GLVSXWHG WKDW &RDWRDP KDG IXOILOOHG HYHU\ RWKHU FRQGLWLRQ RI KLV SUREDWLRQ LQFOXGLQJ SURPSW UHVWLWXWLRQ WR WKH JRYHUQPHQW &RDWRDP VWDWHG WKDW KH IDLOHG WR DWWHQG WKH GUXJ FRXQVHOLQJ EHFDXVH WKHUH ZDV QR EXV ZKLFK FRXOG JHW KLP WR WKH FRXQVHOLQJ VLWH DQG EDFN DIWHU ZRUN EHIRUH WKH EXV VHUYLFH VWRSSHG UXQQLQJ  8QLWHG6WDWHVY&RDWRDP 1R 1R 8QLWHG6WDWHVY&RDWRDP 

&RDWRDP ILOHG D 0RWLRQ WR 5HFRQVLGHU 5HYRFDWLRQ RI ,9&21&/86,21 3UREDWLRQ LQ ZKLFK KH EULHIHG WKH LVVXH ZKHWKHU SUREDWLRQ UHYRFDWLRQ ZDV PDQGDWRU\  7KH GLVWULFW FRXUW HQWHUHG D )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV PDUJLQDO RUGHU RQ WKH PRWLRQ VWDWLQJ   m0U &RDWRDPjV MXGJPHQW SUREDWLRQZDVQRWUHYRNHGEHFDXVHWKH&RXUWEHOLHYHGLWZDV PDQGDWRU\0U&RDWRDPjVSUREDWLRQZDVUHYRNHG IRU KLV DGDPDQWUHIXVDOWRDELGHE\FRQGLWLRQVRISUREDWLRQls$DW &RDWRDPILOHGDWLPHO\QRWLFHRIDSSHDOWRWKLVFRXUW 2QDSSHDO&RDWRDPFKDOOHQJHVWKHGLVWULFWFRXUWjVGHQLDORI KLV PRWLRQ WR UHFRQVLGHU  +H DUJXHV ILUVW WKDW WKH SODLQ ODQJXDJH RI †  E   GRHV QRW DSSO\ WR KLP DQG WKDW UHYRFDWLRQRIKLVSUREDWLRQLVQRWPDQGDWRU\&RDWRDPWKHQ GLVSXWHVWKHSURSULHW\RIWKHGLVWULFWFRXUWjVPDUJLQDORUGHU QRWLQJWKDWWKHPDUJLQDORUGHULVEDVHGRQGLIIHUHQWUHDVRQLQJ WKDQ ZDV UHIOHFWHG LQ WKH RUGHU JLYHQ DW WKH SUREDWLRQ UHYRFDWLRQ KHDULQJ  &RDWRDP DUJXHV WKDW GHVSLWH WKH PDUJLQDO RUGHU WKH GLVWULFW FRXUW FOHDUO\ EHOLHYHG WKDW UHYRFDWLRQRISUREDWLRQZDVPDQGDWRU\7KHUHIRUHKHDVVHUWV WKH GLVWULFW FRXUWjV RUGHU ZDV DQ DEXVH RI GLVFUHWLRQ ZKLFK PXVWEHYDFDWHG 7KHJRYHUQPHQWXUJHVXVWRKROGWKDW† E  UHTXLUHV PDQGDWRU\SUREDWLRQUHYRFDWLRQIRUIDLOXUHWRFRPSO\ZLWK GUXJ WHVWLQJ DQG FRXQVHOLQJ DV LPSRVHG E\ †  D   EHFDXVHDQ\RWKHULQWHUSUHWDWLRQRI† E  ZRXOGOHDG WRDUHVXOWZKLFKLVDEVXUGDQGREYLRXVO\LQFRQVLVWHQWZLWK &RQJUHVVjVLQWHQW$FFRUGLQJWRWKHJRYHUQPHQWm>F@OHDUO\ &RQJUHVVLQWHQGHGWKDWUHIXVDOWRFRPSO\ZLWKGUXJWHVWLQJ ZRXOGYLRODWHDFRQGLWLRQRISUREDWLRQUHTXLULQJGUXJWHVWLQJl $SSHOOHHjV %U DW   ,Q WKH DOWHUQDWLYH WKH JRYHUQPHQW DVVHUWV WKDW HYHQ LI UHYRFDWLRQ ZHUH QRW PDQGDWRU\ WKH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ E\ GHQ\LQJ &RDWRDPjV PRWLRQ IRU UHFRQVLGHUDWLRQ EHFDXVH &RDWRDP DGPLWWHGWRYLRODWLQJKLVSUREDWLRQ  8QLWHG6WDWHVY&RDWRDP 1R 1R 8QLWHG6WDWHVY&RDWRDP 

$ FORVH DQDO\VLV RI WKH VWUXFWXUH DQG ODQJXDJH RI WKHVH ,,$1$/<6,6 UHODWHGVWDWXWRU\SURYLVLRQVUHYHDOVWKDWWKHSUREOHPZLWKWKH VWDWXWH EHIRUH XV LV WKH UHVXOW RI D GUDIWLQJ HUURU QRW DQ\ :H DUH WKH ILUVW DSSHOODWH FRXUW WR UHYLHZ  86& DPELJXLW\DERXW&RQJUHVVjVLQWHQW,QVWHDGRIFUHDWLQJPRUH † E  7KHSURYLVLRQZKLFKZDVHQDFWHGLQ VHH FRQIXVLRQDQGKROGLQJWKHVWDWXWHWRLWVOLWHUDODQGLPSODXVLEOH 9LROHQW &ULPH &RQWURO DQG /DZ (QIRUFHPHQW $FW RI   UHDGLQJZHKROGWKDWWKHJRYHUQPHQWjVSURSRVHGUHDGLQJRI m&ULPH&RQWURO$FWl 3XE/1R† E  † E  LVWKHFRUUHFWRQH 6WDW SURYLGHVIRUPDQGDWRU\UHYRFDWLRQRI SUREDWLRQLIWKHGHIHQGDQW ,,,',675,&7&2857j6(;(5&,6(2) ',6&5(7,21 >5@HIXVHVWRFRPSO\ZLWKGUXJWHVWLQJWKHUHE\YLRODWLQJ WKHFRQGLWLRQLPSRVHGE\VHFWLRQ D   +DYLQJUHMHFWHG&RDWRDPjVVXJJHVWHGLQWHUSUHWDWLRQRIWKH VWDWXWHZHWXUQWRKLVFRQWHQWLRQWKDWWKHGLVWULFWFRXUWHUUHG 86&† E  6HFWLRQ D  ZDVDOVRHQDFWHG E\UHYRNLQJKLVSUREDWLRQ&RDWRDPGRHVQRWFKDOOHQJHWKH LQ ,WVWDWHG OHQJWKRIKLVVHQWHQFH LQVWHDGKHIRFXVHVKLVDSSHDORQWKH TXHVWLRQZKHWKHUWKHGLVWULFWFRXUWHUURQHRXVO\UHYRNHGKLV D 0DQGDWRU\FRQGLWLRQVn7KHFRXUWVKDOOSURYLGH SUREDWLRQ EHFDXVH LW EHOLHYHG LW ZDV UHTXLUHG WR GR VR DVDQH[SOLFLWFRQGLWLRQRIDVHQWHQFHRISUREDWLRQn 'HVSLWHWKHIDFWWKDWWKHGLVWULFWFRXUWGLVFODLPHGDQ\UHOLDQFH RQ  86& †  E   IRU WKH SURSRVLWLRQ WKDW LW ZDV

UHTXLUHGWRUHYRNHSUREDWLRQDIWHUWKHGHIHQGDQWDGPLWWHGWR YLRODWLQJ WKH FRQGLWLRQV RI KLV SUREDWLRQ WKH GLVWULFW FRXUW  IRUDIHORQ\DPLVGHPHDQRURUDQLQIUDFWLRQWKDW FOHDUO\GLGQRWDFWLQHUURULQOLJKWRIWKHDERYHDQDO\VLVRI WKH GHIHQGDQW UHIUDLQ IURP DQ\ XQODZIXO XVH RI D †  E    %HFDXVH WKH GLVWULFW FRXUW ZDV RQ RXU FRQWUROOHGVXEVWDQFHDQGVXEPLWWRRQHGUXJWHVWZLWKLQ LQWHUSUHWDWLRQ WKH VWDWXWH UHTXLUHG WR UHYRNH &RDWRDPjV GD\VRIUHOHDVHRQSUREDWLRQDQGDWOHDVWSHULRGLF SUREDWLRQLWLVLUUHOHYDQWZKHWKHUWKHGLVWULFWFRXUWEHOLHYHG GUXJWHVWVWKHUHDIWHU DVGHWHUPLQHGE\WKHFRXUW IRUXVH LWZDVDFWLQJSXUVXDQWWRLWVGLVFUHWLRQ:HZHUHQRWFDOOHG RIDFRQWUROOHGVXEVWDQFHEXWWKHFRQGLWLRQVWDWHGLQWKLV XSRQWRUHYLHZWKHOHQJWKRI&RDWRDPjVVHQWHQFH7KHUHIRUH ZH PD\ HQG RXU DQDO\VLV E\ FRQFOXGLQJ WKDW ZKDWHYHU LWV UHDVRQLQJWKHGLVWULFWFRXUWUHDFKHGWKHSURSHURXWFRPHLQ  7ZR RWKHU FRXUWV KDYH QRWHG D UHODWHG FURVVUHIHUHQFLQJ SUREOHP EXW WKLVFDVH WKH\ KDYH GLVPLVVHG WKH SUREOHP ZLWKRXW GLVFXVVLRQ 7KHVH FRXUWV KDYH UHYLHZHG FKDOOHQJHV WR  86& †  G  ZKLFK UHTXLUHV FRXUWV WR LPSRVH LQWHU DOLD PDQGDWRU\ GUXJ WHVWLQJ DV D FRQGLWLRQ RI VXSHUYLVHG UHOHDVH 7KH VHFWLRQ VWDWHV WKDW WKH GUXJ WHVWLQJ mPD\ EH DPHOLRUDWHG RU VXVSHQGHG E\ WKH FRXUW DV SURYLGHG LQ VHFWLRQ  D  l 7KH 1LQWK &LUFXLW IRXQG WKDW m>D@OWKRXJK VHFWLRQ  G UHIHUV WR VHFWLRQ  D   WKLV LV FOHDUO\ D PLQLVWHULDO HUURUl 8QLWHG 6WDWHV Y 9LQHJDU 1R   :/    Q WK &LU 0DUFK    VXSHUYLVHG UHOHDVH † % DQG LWV DSSOLFDWLRQ QRWHV DUH QRW ELQGLQJ RQ 6LPLODUO\ WKH 0LGGOH 'LVWULFW RI $ODEDPD QRWHG WKDW m>W@KH UHIHUHQFH WR WKH GLVWULFW FRXUWV 8QLWHG 6WDWHV Y :HVW  )G   WK &LU  FHUW †  D  LV HUURQHRXV DQG †  D  LV WKH LQWHQGHG UHIHUHQFHl GHQLHG  86     :KLOH ZH DUH QRW ERXQG WR IROORZ WKHVH 8QLWHG 6WDWHV Y 6PLWK  ) 6XSS G   Q 0' $OD  SROLF\ VWDWHPHQWV QHYHUWKHOHVV WKH JRYHUQPHQW LV FRUUHFW WR QRWH WKDW ZH FLWLQJ +5 &  5 ! 1     ZKLFK SURSRVHG DQ PD\ SURSHUO\ FRQVLGHU WKH DSSOLFDWLRQ QRWH DV IXUWKHU HYLGHQFH RI WKH DPHQGPHQW WR FKDQJH UHIHUHQFH WR †  IURP mSDUDJUDSK  l WR DSSURSULDWH UHDGLQJ RI WKH FURVVUHIHUHQFH LQ WKH VWDWXWH mVXEVHFWLRQ D  l   8QLWHG6WDWHVY&RDWRDP 1R 1R 8QLWHG6WDWHVY&RDWRDP 

SDUDJUDSKPD\EHDPHOLRUDWHGRUVXVSHQGHGE\WKHFRXUW 6WDW  FRGLILHGDW86&† J  7KH IRU DQ\ LQGLYLGXDO GHIHQGDQW LI WKH GHIHQGDQWjV VLPLODULWLHV EHWZHHQ †  DQG †  IROORZLQJ WKH SUHVHQWHQFH UHSRUW RU RWKHU UHOLDEOH VHQWHQFLQJ DPHQGPHQWVUHYHDOWKDWMXVWDV&RQJUHVVLQWHQGHGIRUWKHUH LQIRUPDWLRQ LQGLFDWHV D ORZ ULVN RI IXWXUH VXEVWDQFH WREHPDQGDWRU\UHYRFDWLRQRIVXSHUYLVHGUHOHDVHIRUIDLOXUH DEXVHE\WKHGHIHQGDQW WRVXEPLWWRPDQGDWRU\GUXJWHVWLQJLQ† J  &RQJUHVV LQWHQGHGWKHUHWREHPDQGDWRU\UHYRFDWLRQRISUREDWLRQIRU &ULPH&RQWURO$FW3XE/ 1R † E  IDLOXUHWRVXEPLWWRPDQGDWRU\GUXJWHVWLQJLQ† E   6WDW  FRGLILHGDW86&† D  $VSDUW RI WKH VDPH $FW D VHFRQG †  D   ZDV DGGHG WR WKH )LQDOO\ D WKLUG DPHQGPHQW WR †  G  ZKLFK FDQ EH VWDWXWH7KLVSURYLVLRQVWDWHG IRXQGDW3XE/1R†  F 6WDW  SURYLGHGWKHIROORZLQJ D 0DQGDWRU\FRQGLWLRQVn7KHFRXUWVKDOOSURYLGH DVDQH[SOLFLWFRQGLWLRQRIDVHQWHQFHRISUREDWLRQn 7KH FRXUW VKDOO RUGHU DV DQ H[SOLFLW FRQGLWLRQ RI VXSHUYLVHGUHOHDVHIRUDGHIHQGDQWFRQYLFWHGIRUWKHILUVW

WLPHRIDGRPHVWLFYLROHQFHFULPHDVGHILQHGLQVHFWLRQ  E  WKDW WKH GHIHQGDQW DWWHQG D SXEOLF SULYDWH RU  IRUDGRPHVWLFYLROHQFHFULPHDVGHILQHGLQVHFWLRQ SULYDWHQRQSURILWRIIHQGHUUHKDELOLWDWLRQSURJUDPWKDWKDV  E E\DGHIHQGDQWFRQYLFWHGRIVXFKDQRIIHQVHIRU EHHQDSSURYHGE\WKHFRXUW WKHILUVWWLPHWKDWWKHGHIHQGDQWDWWHQGDSXEOLFSULYDWH RUSULYDWHQRQSURILWRIIHQGHUUHKDELOLWDWLRQSURJUDPWKDW 7KLV DPHQGPHQW RIIHUV IXUWKHU SURRI WKDW †  G jV KDVEHHQDSSURYHGE\WKHFRXUW UHIHUHQFHWR† D  LVFOHDUO\DQHUURU WKHUHIHUHQFH PXVW EH WR ZKDW LV QRZ †  D   EHFDXVH †  G &ULPH&RQWURO$FW3XE/1R†  E  DOUHDG\FRQWDLQVZLWKLQLWWKHFRQGLWLRQUHODWLQJWRGRPHVWLF 6WDW  FRGLILHGDW86&† D  )RUD YLROHQFH RIIHQGHUV  +DG &RQJUHVV PHDQW IRU †  G  WR WZR\HDUSHULRGRIWLPH† D FRQWDLQHGWZRSDUDJUDSKV UHIHU WR WKH FRQGLWLRQV LPSRVHG RQ GRPHVWLF YLROHQFH QXPEHUHGm  l RIIHQGHUVDW† D  LWQHHGQRWKDYHFLWHGWRDQRXWVLGH VWDWXWH  ,QGHHG VXFK D FLWDWLRQ ZRXOG KDYH EHHQ ERWK ,Q †RIWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK UHGXQGDQWDQGFRQIXVLQJ 3HQDOW\$FWRI  m$('3$l 3XE/1R 6WDWFRUUHFWHGWKHQXPEHULQJSUREOHPLQ† RIWKH&ULPH&RQWURO$FWE\GHVLJQDWLQJWKHSDUDJUDSK   ZKLFKPDQGDWHGGUXJWHVWLQJDVSDUDJUDSK  1RFKDQJH 7KH JRYHUQPHQW FDOOV RXU DWWHQWLRQ WR $SSOLFDWLRQ 1RWH  WR KRZHYHUZDVPDGHWRWKHFURVVUHIHUHQFHLQ† E   866* † % DV IXUWKHU HYLGHQFH RI &RQJUHVVjV GHVLUH WR PDNH UHYRFDWLRQ RI SUREDWLRQ PDQGDWRU\ IRU IDLOXUH WR FRPSO\ ZLWK GUXJ WHVWLQJ $/DQJXDJHRI† E  6HFWLRQ % GHDOV ZLWK WHUPV RI LPSULVRQPHQW DIWHU YLRODWLRQV RI SUREDWLRQ RU VXSHUYLVHG UHOHDVH $SSOLFDWLRQ 1RWH  UHDGV m8SRQ D ILQGLQJ WKDW D GHIHQGDQW YLRODWHG D FRQGLWLRQ RI SUREDWLRQ RU VXSHUYLVHG $VDOZD\VZHILUVWORRNWRWKHODQJXDJHRIWKHVWDWXWHWR UHOHDVH E\    UHIXVLQJ WR FRPSO\ ZLWK D FRQGLWLRQ UHTXLULQJ GUXJ WHVWLQJ GLYLQHLWVPHDQLQJ8QLWHG6WDWHVY&KRLFH)G WKH FRXUW LV UHTXLUHG WR UHYRNH SUREDWLRQ RU VXSHUYLVHG UHOHDVH DQG LPSRVH  WK &LU    6HFWLRQ  E   FOHDUO\ UHTXLUHV D VHQWHQFH WKDW LQFOXGHV D WHUP RI LPSULVRQPHQW  86& ††  E  SUREDWLRQ UHYRFDWLRQ IRU GHIHQGDQWV ZKR KDYH IDLOHG WR  J l

FRPSO\ ZLWK GUXJ WHVWLQJ  ,W DOVR FOHDUO\ SRLQWV UHDGHUV WR %HFDXVH WKH 6HQWHQFLQJ &RPPLVVLRQ KDV LVVXHG RQO\ SROLF\ VWDWHPHQWV QRW JXLGHOLQHV ZLWK UHVSHFW WR WKH UHYRFDWLRQ RI SUREDWLRQ RU  8QLWHG6WDWHVY&RDWRDP 1R 1R 8QLWHG6WDWHVY&RDWRDP 

DUHQHDUO\LGHQWLFDOWRWKHPDQGDWRU\FRQGLWLRQVIRUSUREDWLRQ †  D   LQ RUGHU WR HVWDEOLVK WKDW GUXJ WHVWLQJ ZDV IRXQG LQ †  D   7KH DPHQGPHQW PRVW UHOHYDQW WR RXU LPSRVHG DV D PDQGDWRU\ FRQGLWLRQ RI SUREDWLRQ  6HFWLRQ SXUSRVHV ZKLFK FDQ EH IRXQG DW 3XE / 1R   D  LQWXUQFOHDUO\HVWDEOLVKHVWKDWDVDPDQGDWRU\ †  F   6WDW    DGGHG WKH IROORZLQJ FRQGLWLRQ RI SUREDWLRQ GRPHVWLF YLROHQFH RIIHQGHUV PXVW ODQJXDJHWR† G DWWHQGRIIHQGHUUHKDELOLWDWLRQSURJUDPV5HDGWRJHWKHUWKH SODLQ PHDQLQJ RI †  E   ZLWK LWV FURVVUHIHUHQFH WR 7KH FRXUW VKDOO DOVR RUGHU DV DQ H[SOLFLW FRQGLWLRQ RI FXUUHQW† D  UHTXLUHVFRXUWVWRUHYRNHSUREDWLRQIRU VXSHUYLVHGUHOHDVHWKDWWKHGHIHQGDQWUHIUDLQIURPDQ\ DQ\GHIHQGDQWZKRKDVEHHQFRQYLFWHGRIDFULPHRIGRPHVWLF XQODZIXOXVHRIDFRQWUROOHGVXEVWDQFHDQGVXEPLWWRD YLROHQFHDQGLVUHTXLUHGWRDWWHQGDUHKDELOLWDWLRQSURJUDP GUXJWHVWZLWKLQGD\VRIUHOHDVHRQVXSHUYLVHGUHOHDVH EXWZKRUHIXVHVWRFRPSO\ZLWKPDQGDWRU\GUXJWHVWLQJ1RW DQGDWOHDVWSHULRGLFGUXJWHVWVWKHUHDIWHUIRUXVHRI RQO\LVWKLVUHDGLQJLQDUWIXOLWLVDOVRQRQVHQVLFDO D FRQWUROOHG VXEVWDQFH  7KH FRQGLWLRQ VWDWHG LQ WKH SUHFHGLQJVHQWHQFHPD\EHDPHOLRUDWHGRUVXVSHQGHGE\ ,Q IDFW VXFK D UHDGLQJ DUJXDEO\ UHQGHUV †  E   D WKHFRXUWDVSURYLGHGLQVHFWLRQ D   QXOOLW\EHFDXVHLQRUGHUIRUDFRXUWWRDSSO\† E  D GHIHQGDQWZRXOGKDYHWRUHIXVHWRFRPSO\ZLWKGUXJWHVWLQJ  86& †  G   7KHUH FDQ EH QR GRXEW WKDW WKH DVLPSRVHGE\DFRQGLWLRQRISUREDWLRQZKLFKFRQGLWLRQGRHV UHIHUHQFHWR† D  LQWKLVDPHQGPHQWLVDQHUURU7KH QRW RQ LWV IDFH UHTXLUH GUXJ WHVWLQJ  7KHUH LV RQO\ RQH ILUVW VHQWHQFH FOHDUO\ DGGV PDQGDWRU\ WHVWLQJ IRU XVH RI FRQFHLYDEOH FLUFXPVWDQFH LQ ZKLFK †  E   ZLWK WKH FRQWUROOHG VXEVWDQFHV DV D FRQGLWLRQ RI VXSHUYLVHG UHOHDVH FURVVUHIHUHQFHDVZULWWHQFRXOGEHLQYRNHGE\DFRXUW LID 7KH VHFRQG VHQWHQFH FOHDUO\ UHIHUV WR WKLV GUXJ WHVWLQJ GRPHVWLF YLROHQFH RIIHQGHU ZDV VHQWHQFHG WR D GRPHVWLF FRQGLWLRQDVLWUHIHUHQFHVUHDGHUVWR† D  :HNQRZ YLROHQFH UHKDELOLWDWLRQ SURJUDP DQG DV SDUW RI WKH WKDW&RQJUHVVLQLWLDOO\HQDFWHGRQH† D  WKDWUHTXLUHG UHKDELOLWDWLRQZDVUHTXLUHGWRXQGHUJRGUXJWHVWLQJDQGIDLOHG GUXJWHVWLQJDVDPDQGDWRU\FRQGLWLRQRISUREDWLRQDQGWKDW WRVXEPLWWRWKHWHVWLQJ7KLVUHDGLQJLVKRZHYHUVWUDLQHGDW WKLVVHFWLRQLVQRZIRXQGDW† D  7KHYHU\ODQJXDJH EHVWDQGLVQRWIRXQGLQWKHFXUUHQWODQJXDJHRI† D   RI WKH VWDWXWH WKHUHIRUH FRPSHOV RXU FRQFOXVLRQ WKDW ZKLFKDVQRWHGPDNHVQRPHQWLRQRIGUXJWHVWLQJDWDOO &RQJUHVV LQWHQGHG WKH VHFRQG VHQWHQFH WR FURVVUHIHUHQFH UHDGHUV WR D UHODWHG VWDWXWH WKDW LPSRVHV PDQGDWRU\ GUXJ )ROORZLQJ WKH JRYHUQPHQWjV VXJJHVWLRQ WR UHDG WHVWLQJ  %DVHG RQ WKH ODQJXDJH LQ WKLV DPHQGPHQW ZH † E  DVUHTXLULQJUHYRFDWLRQRISUREDWLRQIRUIDLOXUH FRQFOXGH WKDW MXVW DV ZLWK †  G  ZKLFK HVWDEOLVKHV WRVXEPLWWRGUXJWHVWLQJZKHQDGHIHQGDQWLVUHTXLUHGDVD FRQGLWLRQVIRUVXSHUYLVHGUHOHDVHVRWRRZLWK† E   FRQGLWLRQ RI SUREDWLRQ WR VXEPLW WR GUXJ WHVWLQJ FOHDUO\ ZKLFK HVWDEOLVKHV FRQGLWLRQV IRU SUREDWLRQ PD\ ZH LQIHU PDNHVPRUHVHQVH7KLVUHDGLQJLVSUHPLVHGRQWKHLGHDWKDW &RQJUHVVjV LQWHQW WR FURVVUHIHUHQFH WKH SURYLVLRQ LQ &RQJUHVVPDGHDVLPSOHGUDIWLQJHUURUHLWKHUZKHQLQ  † D UHTXLULQJGUXJWHVWLQJ LWGHVLJQDWHGWKHPDQGDWRU\FRQGLWLRQIRUGRPHVWLFYLROHQFH RIIHQGHUV DV VXEVHFWLRQ D   LQVWHDG RI D   RU ZKHQ LW 2XU FRQFOXVLRQ LV EROVWHUHG E\ DQRWKHU UHOHYDQW IRUJRW WR FKDQJH DOO FURVVUHIHUHQFHV IURP †  D   WR DPHQGPHQW ZKLFK FRUUHVSRQGLQJ WR DQ DPHQGPHQW WR † D  $WILUVWJODQFHWKH6XSUHPH&RXUWjVSUHIHUHQFH †  E   HVWDEOLVKHV PDQGDWRU\ UHYRFDWLRQ RI D IRU D VWDWXWHjV mSODLQ PHDQLQJl RYHU MXGLFLDO LQWHUSUHWLYH GHIHQGDQWjV VXSHUYLVHG UHOHDVH LI WKH GHIHQGDQW mUHIXVHV WR GLVFUHWLRQZHLJKVDJDLQVWWKHJRYHUQPHQWjVSURSRVHGUHDGLQJ FRPSO\ ZLWK GUXJ WHVWLQJ LPSRVHG DV D FRQGLWLRQ RI :KHQ KRZHYHU D SODLQ PHDQLQJ DQDO\VLV RI D VWDWXWH VXSHUYLVHG UHOHDVHl  3XE / 1R  †   SURGXFHVDQDEVXUGUHVXOWLQWKDWWKHLQWHUSUHWDWLRQLVFOHDUO\  8QLWHG6WDWHVY&RDWRDP 1R 1R 8QLWHG6WDWHVY&RDWRDP

DWRGGVZLWK&RQJUHVVjVLQWHQWLQGUDIWLQJWKHVWDWXWHWKHQWKH %/HJLVODWLYH6WUXFWXUH ODQJXDJH RI WKH VWDWXWH PXVW \LHOG WR LQWHUSUHWLYH JXLGDQFH IURPOHJLVODWLYHKLVWRU\RUVWDWXWRU\VWUXFWXUH8QLWHG6WDWHV :HPD\SURSHUO\H[DPLQHWKHVWUXFWXUHRIWKHOHJLVODWLRQ Y 5RQ 3DLU (QWHUV ,QF   86      m7KH SDVVHG LQ   IRU LQWHUSUHWLYH DVVLVWDQFH LQ GHFLSKHULQJ SODLQPHDQLQJRIOHJLVODWLRQVKRXOGEHFRQFOXVLYHH[FHSWLQ &RQJUHVVjVPHDQLQJ 6HH%DLOH\86DW QRWLQJ WKHUDUHFDVHVLQZKLFKWKHOLWHUDODSSOLFDWLRQRIDVWDWXWHZLOO WKDWFRXUWVmFRQVLGHUQRWRQO\WKHEDUHPHDQLQJRIWKHZRUG SURGXFHDUHVXOWGHPRQVWUDEO\DWRGGVZLWKWKHLQWHQWLRQVRI EXWDOVRLWVSODFHPHQWDQGSXUSRVHLQWKHVWDWXWRU\VFKHPHl LWVGUDIWHUV,QVXFKFDVHVWKHLQWHQWLRQRIWKHGUDIWHUVUDWKHU 5HQR Y .RUD\  86      GHWHUPLQLQJ WKDQWKHVWULFWODQJXDJHFRQWUROVl  LQWHUQDOFLWDWLRQRPLWWHG PHDQLQJRIRQHWHUPLQWKH6HQWHQFLQJ5HIRUP$FWRI  VHHDOVR*UHHQY%RFN/DXQGU\0DFK&R 86 E\UHIHUHQFHWRWKHVDPHWHUPLQ%DLO5HIRUP$FWRI      6FDOLDsFRQFXUULQJ  QRWLQJWKDWZKHQOLWHUDO EHFDXVH&RQJUHVVSUHVXPDEO\FRQIHUVFRQVLVWHQWPHDQLQJRQ UHDGLQJRIVWDWXWHSURGXFHVDEVXUGRUXQFRQVWLWXWLRQDOUHVXOW WHUPVLQUHODWHGOHJLVODWLRQ VHHDOVR&KRLFH)GDW FRXUWVPD\ORRNRXWVLGHWKHVWDWXWHjVODQJXDJHWRFRQILUPWKDW m>7@KLVFRXUWDOVRORRNVWRWKHODQJXDJHDQGGHVLJQRIWKH &RQJUHVVGLGQRWLQWHQGVXFKDUHVXOW  VWDWXWH DV D ZKROH LQ LQWHUSUHWLQJ WKH SODLQ PHDQLQJ RI VWDWXWRU\ODQJXDJHl  LQWHUQDOTXRWDWLRQRPLWWHG  $ OLWHUDO UHDGLQJ RI †  QRW RQO\ SURGXFHV DQ DEVXUG UHVXOWEXWLWDOVRYLRODWHVWKHFDQRQRIVWDWXWRU\FRQVWUXFWLRQ )LUVW LW GRHV QRW VWUDLQ UHDVRQ WR DFFHSW WKDW &RQJUHVV WKDWGLVFRXUDJHVFRXUWVIURPDGRSWLQJDUHDGLQJRIDVWDWXWH LQWHQGHG LWV FURVVUHIHUHQFH LQ †  E   WR UHIHU WR WKH WKDWUHQGHUVDQ\SDUWRIWKHVWDWXWHPHUHVXUSOXVDJH%DLOH\Y SDUDJUDSKLQ† D WKDWUHTXLUHVPDQGDWRU\GUXJWHVWLQJ 8QLWHG 6WDWHV  86      QRWLQJ WKDW HDFK DV D FRQGLWLRQ RI SUREDWLRQ  $W WKH WLPH RI HQDFWPHQW ZRUGLQVWDWXWHLVLQWHQGHGWRKDYHmSDUWLFXODUQRQVXSHUIOXRXV &RQJUHVVZDVFRUUHFWWRFURVVUHIHUHQFH† D  LQQHZO\ PHDQLQJl :HUHZHWRDGRSW&RDWRDPjVOLWHUDOUHDGLQJRI GUDIWHG †  E    &RQIXVLRQ DURVH RQO\ EHFDXVH WKH VWDWXWH ZH ZRXOG LQ WKH YDVW PDMRULW\ RI FDVHV EH &RQJUHVV SUHVXPDEO\ LQDGYHUWHQWO\ HQDFWHG D VHFRQG UHQGHULQJ† E   PHUHVXUSOXVDJHEHFDXVHDVQRWHG VXEVHFWLRQ D  6XFKDQRYHUVLJKWLVSHUKDSVQRWVXUSULVLQJ WKHUHLVRQO\RQHFRQFHLYDEOHFLUFXPVWDQFHLQZKLFKDFRXUW JLYHQWKHOHQJWKDQGEUHDGWKRIWKH&ULPH&RQWURO$FW%XW FRXOG LQYRNH WKH SURYLVLRQ  7KDW FLUFXPVWDQFH LH WKH &RQJUHVVjVLQWHQWWRUHYRNHSUREDWLRQIRUWKRVHGHIHQGDQWV GRPHVWLFYLROHQFHRIIHQGHUVHQWHQFHGWRDWHUPRISUREDWLRQ ZKRDUHUHTXLUHGWRVXEPLWWRGUXJWHVWLQJDQGIDLOWRGRVR ZKRUHIXVHVWRVXEPLWWRPDQGDWRU\GUXJWHVWLQJZKLFKZDV FDQQRWEHLQGRXEW)RUHYLGHQFHRI&RQJUHVVjVLQWHQWZH UHTXLUHGDVSDUWRIDGRPHVWLFYLROHQFHRIIHQGHUUHKDELOLWDWLRQ QHHGRQO\ORRNWR† G DSURYLVLRQVLPLODUWR† D  SURJUDPLQYROYHVDQH[WUHPHO\QDUURZUHDGLQJRIWKHVWDWXWH ZKLFKSURYLGHVIRUFRQGLWLRQVRIVXSHUYLVHGUHOHDVHDQGZDV DQGZRXOGDSSO\WRRQO\DWLQ\IUDFWLRQRIWKRVHGHIHQGDQWV DOVRDPHQGHGE\WKH&ULPH&RQWURO$FWRI  UHTXLUHGWRVXEPLWWRGUXJWHVWLQJDVDFRQGLWLRQRISUREDWLRQ 7KHUHIRUHLQRUGHUWRGRmWKHOHDVWGDPDJHlWRWKHVWDWXWHZH 7KH &ULPH &RQWURO $FW DGGHG VHYHUDO QHZ VHFWLRQV WR PXVWORRNEH\RQGWKHVWDWXWHjVSODLQODQJXDJHWRGLVFHUQWKH † G UHJDUGLQJVXSHUYLVHGUHOHDVHWKDWDUHUHOHYDQWWRWKLV VWDWXWHjVPHDQLQJ+HUUPDQQY&HQFRP&DEOH$VVRFV  FDVH  $V D UHVXOW RI WKHVH DPHQGPHQWV †  G  QRZ )G   WK&LU   m&RQGHPQHGE\FRQWUDGLFWRU\ FRQWDLQVPDQGDWRU\FRQGLWLRQVIRUVXSHUYLVHGUHOHDVHZKLFK HQDFWPHQWVWRGLVKRQRUVRPHELWRIWH[WMXGJHVPXVWGRWKH OHDVWGDPDJHWKH\FDQl   7KHUH LV YLUWXDOO\ QR OHJLVODWLYH KLVWRU\ UHJDUGLQJ WKH SURYLVLRQV DW LVVXH LQ WKLV FDVH 5HIHUHQFH WR FRPPLWWHH UHSRUWV DQG RWKHU VXFK VRXUFHV RIIHU QR LQVLJKW LQWR ZKDW DSSHDU WR EH SODLQ GUDIWLQJ HUURUV LQ WKH VWDWXWH