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$SSHOOHH    1RV  Y  !  /8,6 6$/*$'2   :,/)5('2 s$0%8    'HIHQGDQWV$SSHOODQWV   $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH 1R n&KDUOHV56LPSVRQ,,,&KLHI'LVWULFW sXGJH $UJXHG 6HSWHPEHU  'HFLGHGDQG)LOHG 0D\ %HIRUH %$7&+(/'(5DQG&2/(&LUFXLWsXGJHV *5$+$0'LVWULFWsXGJH

7KH +RQRUDEOH sDPHV / *UDKDP 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY6DOJDGRHWDO 1RV  BBBBBBBBBBBBBBBBB &2816(/ $5*8('   : L O O L D P  < H V R Z L W F K   %$5%(5 %$1$6=<16.,  $662&,$7(6 /RXLVYLOOH .HQWXFN\ 0LFKDHO0/RVDYLR/RXLVYLOOH.HQWXFN\IRU$SSHOODQWV $OH[DQGHU 7 7DIW sU $66,67$17 81,7(' 67$7(6 $77251(< /RXLVYLOOH .HQWXFN\ IRU $SSHOOHH 21 %5,()   :LOOLDP <HVRZLWFK %$5%(5 %$1$6=<16.,  $662&,$7(6 /RXLVYLOOH .HQWXFN\ 0LFKDHO0/RVDYLR/RXLVYLOOH.HQWXFN\IRU$SSHOODQWV $OH[DQGHU77DIW7HUU\0&XVKLQJ$66,67$1781,7(' 67$7(6$77251(</RXLVYLOOH.HQWXFN\IRU$SSHOOHH *5$+$0 ' s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK %$7&+(/'(5 s MRLQHG  &2/( s SS   GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB *5$+$0'LVWULFWsXGJH$SSHOODQWV/XLV6DOJDGR &DVH 1R  DQG:LOIUHGRsDPEX &DVH1R  ZHUH QDPHGDORQJZLWKWZRRWKHUGHIHQGDQWV)UDQFLVFR3RUWXRQGR *RQ]DOH]DQG'DQLHO5RVDOH]LQDWZRFRXQWLQGLFWPHQWILOHG RQsXQH LQWKH:HVWHUQ'LVWULFWRI.HQWXFN\&RXQW RIWKHLQGLFWPHQWDOOHJHGDFRQVSLUDF\RQRUDERXW0D\   WR SRVVHVV ZLWK WKH LQWHQW WR GLVWULEXWH FRFDLQH LQ YLRODWLRQ RI  86& †   &RXQW  RI WKH LQGLFWPHQW FKDUJHG WKH GHIHQGDQWV ZLWK SRVVHVVLQJ ZLWK LQWHQW WR GLVWULEXWHILYHNLORJUDPVRIFRFDLQHLQYLRODWLRQRI86& † D   7KH FDVH DJDLQVW 6DOJDGR DQG sDPEX ZDV WULHG EHIRUH D MXU\DQGRQs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jVDSDUWPHQWGRRUORFNWRGHWHUPLQHZKHWKHUWKHNH\ )ULGD\0D\  ILWFRQVWLWXWHGDVHDUFKIRU)RXUWK$PHQGPHQWSXUSRVHV6HH LGDW7KHFRXUWZHQWRQWRFRQFOXGHKRZHYHUWKDW 7HOHSKRQH WROO UHFRUGV UHYHDOHG WKDW FDOOV ZHUH SODFHG VXFKVHDUFKGLGQRWYLRODWHWKH)RXUWK$PHQGPHQWEHFDXVH EHWZHHQ 6DOJDGR V FHOO SKRQH DQG 3RUWXRQGR*RQ]DOH] V WKHGHIHQGDQWjVSULYDF\LQWHUHVWLQWKHNH\KROHZDVPLQLPDO SKRQHRQ$SULO DQG DQGRQ0D\  6HH LG DW   7KH VDPH LV WUXH KHUH  7KH )RXUWK &DOOVZHUHDOVRSODFHGIURPDSKRQHUHJLVWHUHGWRsDPEXWR $PHQGPHQWjVKLVWRULFSURWHFWLRQRIWKHSULYDF\RIWKHKRPH 6DOJDGR VFHOOSKRQHRQ$SULO DQG DQGRQ0D\ VXJJHVWV WKDW RQ GLIIHUHQW IDFWV WKH VDPH LQYHVWLJDWLYH   WHFKQLTXHDWLVVXHKHUHPLJKWUHTXLUHDVKRZLQJRISUREDEOH FDXVHRUDZDUUDQW RQWKHVHIDFWVKRZHYHUsDPEXjVSULYDF\ 6DOJDGRDUULYHGLQ/RXLVYLOOHRQ0D\ 7HOHSKRQH LQWHUHVW LQ KLV GRRU ORFN ZDV VR PLQLPDO WKDW WKH RIILFHUj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sDPEXUHVLGHG6DOJDGRGURYHWRDUHVWDXUDQWZKHUH KHWUDGHGFDUVZLWK3RUWXRQGR*RQ]DOH]WKHQSURFHHGHGLQ 3RUWXRQGR*RQ]DOH] V &DPU\ WR WKH 3DWWHUVRQ 'ULYH UHVLGHQFH 6DOJDGR ZDV VHHQ LQ WKH FRPSDQ\ RI sDPEX DW DSSUR[LPDWHO\ SPDWWKH3DWWHUVRQ'ULYHDGGUHVV$W DSSUR[LPDWHO\   SP sDPEX OHIW WKH 3DWWHUVRQ 'ULYH UHVLGHQFHZLWKWZRZRPHQDQGDFKLOGDQGSURFHHGHGWRKLV UHVLGHQFHRQ%HUPXGD/DQH3RUWXRQGR*RQ]DOH]6DOJDGR DQG5RVDOH]UHPDLQHGDWWKH3DWWHUVRQ'ULYHUHVLGHQFH$W DSSUR[LPDWHO\ SP6DOJDGRZDVREVHUYHGWDONLQJRQD SKRQH DQG DW DSSUR[LPDWHO\   SP sDPEX OHIW KLV DSDUWPHQW RQ %HUPXGD /DQH DQG ZDV VHHQ DUULYLQJ DW WKH 3DWWHUVRQ 'ULYH DGGUHVV DW DSSUR[LPDWHO\   SP  7KH VXUYHLOODQFHRIILFHUREVHUYHGsDPEXRSHQWKHWUXQNRIKLVFDU ORRNWRWKHULJKWDQGWRWKHOHIWWKHQSURFHHGWRWKHIURQWRI WKHKRXVH+HDSSHDUHGWREHFDUU\LQJVRPHWKLQJLQKLVULJKW KDQG  8QLWHG6WDWHVY6DOJDGRHWDO 1RV  1RV  8QLWHG6WDWHVY6DOJDGRHWDO  BBBBBBBBBBBBBBBBB $FFRUGLQJWR5RVDOH]sDPEXHQWHUHGWKHKRXVHWKURXJKWKH GRRUIURPWKHJDUDJHLQWRWKHNLWFKHQDQGGHOLYHUHGDEURZQ &21&855(1&( SDSHU JURFHU\ VWRUH EDJ  sDPEX VWDWHG WR 3RUWXRQGR BBBBBBBBBBBBBBBBB *RQ]DOH],EURXJKWWKHVKLW PHDQLQJWKHFRFDLQH DQGVDLG , OOFDOO\RXODWHUsDPEXOHIWDW SPDQGUHWXUQHGWR 5*8<&2/(s5&LUFXLWsXGJHFRQFXUULQJ$OWKRXJK KLVDSDUWPHQWRQ%HUPXGD/DQH:LWKLQWKHQH[WKDOIKRXU ,FRQFXULQWKH&RXUWjVGHFLVLRQDIILUPLQJWKHMXGJPHQWRIWKH 5RVDOH] ZDV ORRNLQJ RXW WKH JDUDJH GRRU WRZDUG WKH SDWLR GLVWULFWFRXUW,ZULWHVHSDUDWHO\WRUHJLVWHUP\GLVDJUHHPHQW DUHD ZKLFK H[WHQGHG WR WKH IHQFH DQG REVHUYHG D ILJXUH ZLWK WKH &RXUWjV DQDO\VLV RI WKH DGPLVVLELOLW\ RI SROLFH ZDONLQJ WRZDUG WKH IHQFH  $W DSSUR[LPDWHO\   SP WHVWLPRQ\UHODWLQJWRDQRIILFHUjVLQVHUWLRQRIDNH\LQWRWKH 3RUWXRQGR*RQ]DOH] ZDV VHHQ E\ WKH VXUYHLOODQFH RIILFHU ORFNRQ'HIHQGDQWsDPEXjVDSDUWPHQWGRRU6SHFLILFDOO\,GR ZDONLQJIURPWKHUHDURIWKH\DUGDORQJWKHIHQFHOLQH QRW DJUHH ZLWK WKH PDMRULW\jV FRQFOXVLRQ LQ 3DUW 9, RI LWV RSLQLRQ WKDW WKH RIILFHUj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j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m7KH FRXUWV KDYH WUDGLWLRQDOO\LQWHUSUHWHGWKH)RXUWK$PHQGPHQWWRDOORZODZ 'XULQJWKHVHDUFKSKRQHFDOOVZHUHSODFHGIURPWKHSKRQH HQIRUFHPHQW RIILFHUV JUHDWHU OHHZD\ ZKHQ FRQGXFWLQJ DW sDPEX V DSDUWPHQW WR 6DOJDGR V FHOO SKRQH  sDPEX DQG ZDUUDQWOHVV VHDUFKHV LQVLGH YHKLFOHV WKDQ WKH\ HQMR\ ZKHQ 3RUWXRQGR*RQ]DOH] VZLIHOHIWWKH%HUPXGD5RDGDSDUWPHQW VHDUFKLQJKRPHVl ,QWKLVLQVWDQFHWKHRIILFHUjVWXUQLQJ DQGGURYHLQWKHGLUHFWLRQRIWKH3DWWHUVRQ'ULYHDGGUHVVEXW RIWKHNH\LQWKHORFNWRsDPEXjVDSDUWPHQWGRRUHQFURDFKHV ZHUHVWRSSHGDQGDUUHVWHG RQ WKH m]RQH RI SULYDF\l KHOG PRVW VDFURVDQFW XQGHU WKH )RXUWK$PHQGPHQW6HH6PLWKY6WRQH1R  2Q0D\ WKHSROLFHORFDWHGWKHVLOYHU0XVWDQJLQ :/  DW  WK &LU 0D\     XQSXEOLVKHG WKHSDUNLQJORWRIWKH7DQJOHZRRG$SDUWPHQWV$GUXJGRJ m>7@KH)RXUWK$PHQGPHQWSURWHFWVDQLQGLYLGXDOjVSULYDF\ DOHUWHGWRWKHOHIWUHDUTXDUWHUSDQHOZKHUHLWPHWWKHEXPSHU LQ PDQ\ GLIIHUHQW VHWWLQJV EXW µ>L@Q QRQH LV WKH ]RQH RI $VHDUFKRIWKH0XVWDQJUHYHDOHGWKDWWKHYHKLFOHZKLFKZDV SULYDF\ PRUH FOHDUO\ GHILQHG WKDQ ZKHQ ERXQGHG E\ WKH SXUFKDVHGE\*DUFLDRQ$SULO LQ7DPSD)ORULGDZLWK XQDPELJXRXV GLPHQVLRQV RI DQ LQGLYLGXDOjV KRPHjl VL[WHHQPLOHVRQLWKDGPLOHVRQWKHRGRPHWHU$NH\ TXRWLQJ3D\WRQY1HZ<RUN86     IRXQGLQWKHFDUILWWKHORFNRIsDPEX VDSDUWPHQWGRRU ,ZRXOGDGRSWWKHUHDVRQLQJVHWIRUWKE\WKH6HYHQWK&LUFXLW $WWKHWLPHRIKLVDUUHVWRQ0D\ 6DOJDGRJDYHD LQ 8QLWHG 6WDWHV Y &RQFHSFLRQ  )G  WK &LU VWDWHPHQWWRWKHSROLFH+HJDYHD0LDPL)ORULGDDGGUHVV  8QLWHG6WDWHVY6DOJDGRHWDO 1RV  1RV  8QLWHG6WDWHVY6DOJDGRHWDO  DQGSURYLGHGKLVFHOOSKRQHQXPEHU+HVWDWHGWKDWKHKDG ,QWKLVFDVHWKHVHQWHQFLQJMXGJHFOHDUO\LQGLFDWHGWKDWKH FRPHWR/RXLVYLOOHWRYLVLWDFRXVLQsDPEX VJLUOIULHQG+H EHOLHYHGWKDWKHKDGWKHDXWKRULW\WRGHSDUWGRZQZDUGRQWKH VWDWHGKHWKRXJKWWKHFDUKHKDGGULYHQIURP)ORULGDZDVD EDVLVRI6DOJDGR VDOLHQVWDWXVEXWWKDWKHZDVGHFOLQLQJWRGR UHQWDOFDUEXWKHGLGQRWUHPHPEHUZKDWNLQGRIFDULWZDV VRLQWKLVFDVH7KHWULDOFRXUWVWDWHG,DPJRLQJWRUHIXVHWR ZKRJDYHKLPWKHFDURUZKHUHWKH FDU ZDV+HVWDWHGKH GR LW XQGHU WKHVH IDFWV  , P QRW KROGLQJ WKDW , FDQ W  , P DUULYHGLQ/RXLVYLOOHDWDSSUR[LPDWHO\ RU SPDQG KROGLQJWKDW, PQRWJRLQJWRKHUHXQGHUWKHIDFWVWKDWKHKDV UHFHLYHGDSKRQHFDOOIURP3RUWXRQGR*RQ]DOH]ZKRJDYH LQWKLVFDVHsW$SSS:KHUHDVKHUHWKHWULDOFRXUW KLPGLUHFWLRQVWRDUHVWDXUDQW+HJDYHWKHFDUWR3RUWXRQGR DIILUPDWLYHO\VWDWHVRQWKHUHFRUGWKDWDOLHQVWDWXVFDQSURYLGH *RQ]DOH]DWWKHUHVWDXUDQWDQGGURYHWR3RUWXRQGR*RQ]DOH] V D EDVLV IRU GHSDUWXUH EXW GHFOLQHV WR GR VR XQGHU WKH UHVLGHQFHLQKLV&DPU\ FLUFXPVWDQFHVRIWKHSDUWLFXODUFDVHVXFKDZDUHQHVVRIWKH GLVFUHWLRQDU\ SRZHU WR GHSDUW SUHFOXGHV RXU UHYLHZ RI WKH ,,6XIILFLHQF\RIWKH(YLGHQFH VHQWHQFLQJ MXGJH V GHFLVLRQ QRW WR JUDQW D GRZQZDUG GHSDUWXUH6HH8QLWHG6WDWHVY)DUURZ )G  6DOJDGR DQG sDPEX DVVHUW WKDW WKH HYLGHQFH DW WULDO ZDV WK&LU  LQVXIILFLHQW WR VXVWDLQ WKHLU FRQYLFWLRQV IRU FRQVSLUDF\ DQG SRVVHVVLRQZLWKWKHLQWHQWWRGLVWULEXWHFRFDLQHDQGWKDWWKH 9,,,&RQFOXVLRQ WULDOFRXUWHUUHGLQGHQ\LQJWKHLUPRWLRQVIRUDMXGJPHQWRI DFTXLWWDO2XUUHYLHZRIWKHGHQLDORIDPRWLRQIRUDFTXLWWDO ,QDFFRUGDQFHZLWKWKHIRUHJRLQJWKHMXGJPHQWVRIWKHWULDO LVGHQRYR8QLWHG6WDWHVY:XOLJHU )G  FRXUWLQWKHFDVHVRI/XLV6DOJDGRDQG:LOIUHGRsDPEXDUH WK&LU  FHUWGHQLHG86     KHUHE\$)),50(' >$@GHIHQGDQWFODLPLQJLQVXIILFLHQF\RIWKHHYLGHQFHEHDUV DKHDY\EXUGHQ8QLWHG6WDWHVY0DOLV]HZVNL)G   WK&LU  FHUWGHQLHG86  ,Q UHYLHZLQJ D FODLP RI LQVXIILFLHQW HYLGHQFH WKH UHOHYDQW TXHVWLRQLVZKHWKHUDIWHUYLHZLQJWKHHYLGHQFHLQWKHOLJKW PRVWIDYRUDEOHWRWKHSURVHFXWLRQDQ\UDWLRQDOWULHURIIDFW  FRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWVRIWKHFULPHEH\RQG 7KHUH LV D VSOLW RI DXWKRULW\ RQ WKH LVVXH RI ZKHWKHU D GHIHQGDQW V

DUHDVRQDEOHGRXEWsDFNVRQY9LUJLQLD86 VWDWXV DV D GHSRUWDEOH DOLHQ LV D SURSHU EDVLV IRU D GRZQZDUG GHSDUWXUH &RPSDUH 8QLWHG 6WDWHV Y 9HOR]D  )G   WK &LU       7KH JRYHUQPHQW PD\ PHHW LWV EXUGHQ WKURXJK 8QLWHG 6WDWHV Y 0HQGR]D/RSH]  )G   WK &LU   FLUFXPVWDQWLDOHYLGHQFHDORQHDQGVXFKHYLGHQFHQHHGQRW 8QLWHG 6WDWHV Y 1QDQQD  )G   WK &LU   DQG 8QLWHG H[FOXGHHYHU\SRVVLEOHK\SRWKHVLVH[FHSWWKDWRIJXLOW8QLWHG 6WDWHV Y 5HVWUHSR )G   G &LU   GHSRUWDEOH DOLHQ 6WDWHVYsDFNVRQ)G  WK&LU FHUWGHQLHG VWDWXV QRW D SURSHU EDVLV IRU GHSDUWLQJ GRZQZDUG  ZLWK 8QLWHG 6WDWHV Y

86     )DURXLO  )G   WK &LU   8QLWHG 6WDWHV Y 6PLWK  )G    '&&LU   GHSRUWDEOH DOLHQ VWDWXV PD\ EH FRQVLGHUHG IRU D GRZQZDUG GHSDUWXUH  7KLV FRXUW KDV FRQVLGHUHG WKH ,Q DVVHVVLQJ WKH VXIILFLHQF\ RI WKH HYLGHQFH ZH GR QRW TXHVWLRQ RQO\ LQ WKH FRQWH[W RI D GHIHQGDQW FKDUJHG ZLWK DQ RIIHQVH ZKLFK

ZHLJKWKHHYLGHQFHDVVHVVWKHFUHGLELOLW\RIWKHZLWQHVVHVRU FRXOG EH FRPPLWWHG RQO\ E\ DOLHQV DQG FRQFOXGHG WKDW LQ VXFK D FDVH WKH

VXEVWLWXWHRXUMXGJPHQWIRUWKDWRIWKHMXU\8QLWHG6WDWHVY 6HQWHQFLQJ &RPPLVVLRQ KDG DOUHDG\ WDNHQ DOLHQ VWDWXV LQWR FRQVLGHUDWLRQ

:ULJKW)G  WK&LU FHUWGHQLHG86 LQ GHWHUPLQLQJ WKH JXLGHOLQH UDQJH 6HH (EROXP  )G DW  +HUH ZH

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†  DOOHJHG LQ &RXQW  RI WKH LQGLFWPHQW WKH ,GS JRYHUQPHQWKDGWRSURYH   DQDJUHHPHQWWRYLRODWHGUXJ ODZV   NQRZOHGJHDQGLQWHQWWRMRLQWKHFRQVSLUDF\ DQG  :KHUHWKHJRYHUQPHQWFKDOOHQJHVDGHIHQGDQW VFODLPRI SDUWLFLSDWLRQLQWKHFRQVSLUDF\8QLWHG6WDWHVY:HOFK  FRPSOHWHDQGWLPHO\GLVFORVXUHDQGWKHGHIHQGDQWGRHVQRW )G    WK &LU     7KH JRYHUQPHQW LV QRW SURGXFHHYLGHQFHWKDWGHPRQVWUDWHVVXFKGLVFORVXUHDGLVWULFW UHTXLUHGWRSURYHWKDWDIRUPDODJUHHPHQW H[LVWHG8QLWHG FRXUW VGHQLDORIDUHTXHVWWRDSSO\† I DQG†&  6WDWHV Y $YHU\  )G   WK &LU     7KH LVQRWFOHDUO\HUURQHRXV$GX)GDW+HUHWKHWULDO H[LVWHQFHRIDFRQVSLUDF\PD\EHLQIHUUHGIURPFLUFXPVWDQWLDO FRXUWGLGQRWFRPPLWFOHDUHUURULQFRQFOXGLQJWKDW6DOJDGR HYLGHQFHWKDWFDQUHDVRQDEO\EHLQWHUSUHWHGDVSDUWLFLSDWLRQLQ IDLOHGWRSURYLGHWKHJRYHUQPHQWZLWKDFRPSOHWHO\IRUWKULJKW WKH FRPPRQ SODQ  $YHU\  )G DW   $Q LQWHQW WR DFFRXQWRIKLVRZQLQYROYHPHQWLQWKHRIIHQVH,G7KHWULDO GLVWULEXWHWKHFRFDLQHPD\EHLQIHUUHGIURPWKHODUJHTXDQWLW\ FRXUWSURSHUO\GHFLGHGWKDW†&ZDVQRWDSSOLFDEOH DQGSXULW\RIWKHFRFDLQH6HH8QLWHG6WDWHVY:KLWH  )G  WK&LU   &'HQLDORI'RZQZDUG'HSDUWXUH'XHWR$OLHQ6WDWXV $OWKRXJKPHUHSUHVHQFHDWWKHFULPHVFHQHLVLQVXIILFLHQW 6DOJDGRDOVRVHHNVWRDSSHDOWKHILQGLQJRIWKHGLVWULFWFRXUW WR VKRZ SDUWLFLSDWLRQ D GHIHQGDQW V SDUWLFLSDWLRQ LQ WKH WKDWKHZDVQRWHQWLWOHGWRDGRZQZDUGGHSDUWXUHGXHWRKLV FRQVSLUDF\ VFRPPRQSXUSRVHDQGSODQPD\EHLQIHUUHGIURP DOLHQVWDWXV6DOJDGRDUJXHGEHORZWKDWGXHWRWKHIDFWWKDWKH WKH GHIHQGDQW V DFWLRQV DQG UHDFWLRQV WR WKH FLUFXPVWDQFHV ZDVD&XEDQQDWLRQDOZKRFDQQRWFXUUHQWO\EHGHSRUWHGGXH 0DOLV]HZVNL  )G DW  FLWLQJ 8QLWHG 6WDWHV Y WR WKH ODFN RI GLSORPDWLF UHODWLRQV EHWZHHQ &XED DQG WKH +HUQDQGH])G WK&LU FHUWGHQLHG86 8QLWHG6WDWHVKHPLJKWEHKHOGLQGHILQLWHO\LQWKHFXVWRG\RI    :KLOHDQDJUHHPHQWPXVWEHVKRZQEH\RQGD WKH,PPLJUDWLRQDQG1DWXUDOL]DWLRQ6HUYLFHXSRQKLVUHOHDVH UHDVRQDEOHGRXEWWKHFRQQHFWLRQEHWZHHQWKHGHIHQGDQWDQG IURPSULVRQ WKHFRQVSLUDF\QHHGRQO\EHVOLJKWDQGWKHJRYHUQPHQWLVRQO\ UHTXLUHGWRSURYHWKDWWKHGHIHQGDQWZDVDSDUW\WRWKHJHQHUDO 7KH UHIXVDO RI D GLVWULFW MXGJH WR PDNH D GRZQZDUG FRQVSLUDWRULDODJUHHPHQW,G GHSDUWXUHLVRUGLQDULO\QRWDSSHDODEOH8QLWHG6WDWHVY%\UG  )G   WK &LU     $ GHFLVLRQ GHQ\LQJ D 7KH HYLGHQFH UHOLHG RQ E\ WKH JRYHUQPHQW WR SURYH WKH GRZQZDUG GHSDUWXUH PD\ EH DSSHDOHG RQO\ ZKHUH WKH WULDO FRQVSLUDF\RIIHQVHLVEDVLFDOO\WKHVDPHHYLGHQFHUHOLHGXSRQ FRXUW VUHIXVDOWRGHSDUWZDVEDVHGRQWKHHUURQHRXVEHOLHIWKDW WRSURYHWKHSRVVHVVLRQFKDUJH7RHVWDEOLVKWKHFKDUJHRI LWODFNHGWKHDXWKRULW\WRGRVR8QLWHG6WDWHVY/DQGHUV SRVVHVVLRQ ZLWK LQWHQW WR GLVWULEXWH LOOHJDO GUXJV XQGHU  )G    WK &LU     7KXV LQ 8QLWHG 6WDWHV Y 86& †  D   LQ &RXQW  RI WKH LQGLFWPHQW WKH (EROXP)G WK &LU   ZHUHYLHZHGWKHWULDO JRYHUQPHQWKDGWRSURYHWKDW   WKHGHIHQGDQWNQRZLQJO\ FRXUW VGHFLVLRQGHFOLQLQJDGRZQZDUGGHSDUWXUHEDVHGRQWKH   SRVVHVVHG D FRQWUROOHG VXEVWDQFH    ZLWK LQWHQW WR GHIHQGDQW V VWDWXV DV D GHSRUWDEOH DOLHQ ZKHUH WKH FRXUW GLVWULEXWH  s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†&LVDIDFWXDOILQGLQJ SUHVHQWHGDWWULDOWKDWDQDJUHHPHQWWRSRVVHVVZLWKWKHLQWHQW ZKLFKZHUHYLHZIRUFOHDUHUURU$GX)GDW WRGLVWULEXWHFRFDLQHH[LVWHG DQGWKDW3RUWXRQGR*RQ]DOH] *DUFLD5RVDOH]6DOJDGRDQGsDPEXNQRZLQJO\SDUWLFLSDWHG $W VHQWHQFLQJ 6DOJDGR UHOLHG RQ D VWDWHPHQW ZKLFK KH LQWKDWFRQVSLUDF\7KHLQWHQWWRGLVWULEXWHWKHFRFDLQHZDV PDGHWRRIILFHUVRQWKHGDWHRIKLVDUUHVW7KHJRYHUQPHQW VKRZQE\WKHODUJHTXDQWLW\DQGSXULW\RIWKHFRFDLQHLQYROYHG GLVSXWHG WKH GHIHQGDQW V HQWLWOHPHQW WR WKH DSSOLFDWLRQ RI DQG E\ WKH IDFW WKDW RQFH WKH FRFDLQH ZDV WUDQVSRUWHG WR †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s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sDPEXDQG3RUWXRQGR*RQ]DOH] /LNHZLVHWKHUHFRUGIDLOVWRVKRZWKDW6DOJDGRSOD\HGRQO\D VKRUWO\EHIRUHDQGRQWKHGD\WKDWWKHVDOHRIFRFDLQHWR+HDWK VLQJOH OLPLWHG UROH LQ WKH WUDQVDFWLRQ RU WKDW KH ODFNHG ZDV WR RFFXU  6DOJDGR PHW ZLWK 3RUWXRQGR*RQ]DOHV WR NQRZOHGJHRUXQGHUVWDQGLQJRIWKHVFRSHRIWKHWUDQVDFWLRQ H[FKDQJH YHKLFOHV DW D UHVWDXUDQW QHDU sDPEX V DSDUWPHQW VRDVWRTXDOLI\KLPDVDPLQLPDOSDUWLFLSDQW6DOJDGRKDVQRW VKRUWO\DIWHU6DOJDGR VDUULYDOLQ/RXLVYLOOHDQGWKH0XVWDQJ VKRZQ E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW KH ZDV ZDV ODWHU IRXQG LQ WKH SDUNLQJ ORW RI sDPEX V DSDUWPHQW HQWLWOHGWRDPLWLJDWLQJUROHDGMXVWPHQW FRPSOH[,WZRXOGEHUHDVRQDEOHIRUWKHMXU\WRLQIHUWKDWWKH H[FKDQJHZDVPDGHWRIDFLOLWDWHWKHXQORDGLQJRIWKHFRFDLQH %'HQLDORI6DIHW\9DOYH5HGXFWLRQ 6DOJDGRZDVDOVRSUHVHQWDWWKHUHVLGHQFHRQ3DWWHUVRQ'ULYH DWWKHVFKHGXOHGWLPHRIWKHVDOHRIFRFDLQHWR+HDWK+HZDV 6DOJDGRDOVRFKDOOHQJHVWKHWULDOFRXUW V GHFLVLRQILQGLQJ VHHQXVLQJDSKRQHVKRUWO\EHIRUHsDPEXOHIWKLVDSDUWPHQW WKDWKLVFDVHGLGQRWZDUUDQWWKHDSSOLFDWLRQRIWKHVRFDOOHG DQGSURFHHGHGWRWKH3DWWHUVRQ'ULYHDGGUHVVWRGHOLYHUWKH VDIHW\ YDOYH SURYLVLRQ IRXQG LQ  86& †  I  DV SDFNDJHFRQWDLQLQJWKHFRFDLQH7KHHYLGHQFHLVVXIILFLHQWWR LQFRUSRUDWHGLQWR866*†&8QGHUWKLVSURYLVLRQD VXSSRUW6DOJDGR VFRQYLFWLRQVIRUFRQVSLUDF\DQGSRVVHVVLRQ GHIHQGDQWZKRLVIRXQGE\WKHFRXUWWRPHHWWKHFULWHULDVHW ZLWKWKHLQWHQWWRGLVWULEXWHFRFDLQH IRUWKLQ86&† I    LVVHQWHQFHGZLWKLQWKH JXLGHOLQHUDQJHDSSOLFDEOHWRKLVFDVHHYHQLIWKDWUDQJHIDOOV $UDWLRQDOWULHURIIDFWFRXOGDOVRUHDVRQDEO\ILQGIURPWKH EHORZDQRWKHUZLVHPDQGDWRU\VWDWXWRU\PLQLPXPVHQWHQFH HYLGHQFHWKDWsDPEXZDVDPHPEHURIWKHFRQVSLUDF\WKDWKH ,QWKLVFDVHWKHWULDOFRXUWIRXQGWKDWWKHGHIHQGDQWGLGQRW NQRZLQJO\ SDUWLFLSDWHG LQ LW DQG WKDW KH DLGHG LQ WKH PHHWWKHUHTXLUHPHQWIRXQGLQ86&† I  ZKLFK SRVVHVVLRQRIFRFDLQHZLWKWKHLQWHQWWKDWLWEHGLVWULEXWHG SURYLGHVWKDW 6KRUWO\EHIRUHWKHVDOHZDVWRRFFXUDW SPs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sDPEXOHIWKLVDSDUWPHQWDQGSURFHHGHGEDFNWRWKH3DWWHUVRQ GHWHUPLQDWLRQ E\ WKH FRXUW WKDW WKH GHIHQGDQW KDV 'ULYH DGGUHVV DW DSSUR[LPDWHO\   SP  +H RSHQHG WKH FRPSOLHGZLWKWKLVUHTXLUHPHQW WUXQN RI KLV FDU ORRNHG WR KLV OHIW DQG WR KLV ULJKW DQG DSSHDUHGWRFDUU\VRPHWKLQJLQWRWKHKRXVH$FFRUGLQJ WR 86&† I  VHHDOVR866*†&   5RVDOH] s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sDPEXEURXJKWWKHFRFDLQHWR Y2ZXVX )G  WK&LU :HUHYLHZD WKHUHVLGHQFH GLVWULFW FRXUW V GHQLDO RI D PLWLJDWLQJ UROHDGMXVWPHQW WR D GHIHQGDQW VRIIHQVHOHYHOIRUFOHDUHUURU,G 7HOHSKRQHWROOUHFRUGVUHYHDOHGVHYHUDOFDOOVSULRUWRDQGRQ WKHGD\RIWKHVFKHGXOHGVDOHRIFRFDLQHIURPsDPEX VSKRQH 7KH UHFRUG UHYHDOV WKDW 6DOJDGR GURYH WKH YHKLFOH WR6DOJDGR VFHOOSKRQH7KHH[HFXWLRQRIWKHVHDUFKZDUUDQW FRQWDLQLQJVHYHQNLORJUDPVRIFRFDLQHIURP0LDPL)ORULGD DW3DWWHUVRQ'ULYHFRPPHQFHGDW SP7ZRSKRQHFDOOV WR/RXLVYLOOH.HQWXFN\7KHWUDQVSRUWDWLRQRIWKHFRFDLQH PDGHIURPsDPEX VSKRQHDW DQG ZHQWXQDQVZHUHG IURP)ORULGDZDVDQDFWFUXFLDOWRWKHVXFFHVVRIWKHFULPLQDO $WVRPHSRLQWVKRUWO\DIWHUWKHFRPPHQFHPHQWRIWKHVHDUFK VFKHPH  )XUWKHU6DOJDGR VUROHZDVQRWOLPLWHGWRVLPSO\ sDPEX ZDV VHHQ OHDYLQJ WKH DSDUWPHQW DW %HUPXGD /DQH WUDQVSRUWLQJ WKH FRFDLQH  'XULQJ WKH WULS 6DOJDGR GULYLQJLQWKHGLUHFWLRQRIWKH3DWWHUVRQ'ULYHDGGUHVV+H FRPPXQLFDWHGZLWK3RUWXRQGR*RQ]DOH]YLDFHOOSKRQH+H ZDVSXOOHGRYHUE\WKHSROLFHDW SP7KHMXU\FRXOG PHWZLWK3RUWXRQGR*RQ]DOH]DWDUHVWDXUDQWDQGH[FKDQJHG UHDVRQDEO\LQIHUWKDWsDPEXFRQFHUQHGDERXWWKHODFNRIDQ WKHYHKLFOHIRU3RUWXRQGR*RQ]DOH] V7R\RWD&DPU\WKHUHE\ DQVZHUWRKLVSKRQHFDOOVDQGIHDULQJWKDWVRPHWKLQJKDGJRQH IDFLOLWDWLQJ3RUWXRQGR*RQ]DOH] VXQORDGLQJRIWKHFRFDLQH ZURQJ ZLWK WKH VDOH GHFLGHG WR JR WKH 3DWWHUVRQ 'ULYH WKHQ GURYH WKH &DPU\ WR 3RUWXRQGR*RQ]DOH] V UHVLGHQFH UHVLGHQFHWRLQYHVWLJDWH7KHVLOYHU0XVWDQJXVHGWRWUDQVSRUW 6DOJDGRZDVDWWKH3RUWXRQGR*RQ]DOH]UHVLGHQFHZKHQWKH WKHFRFDLQHZDVIRXQGLQWKHSDUNLQJORWRIsDPEX VDSDUWPHQW VDOH RI ILYH NLORJUDPV RI FRFDLQH WR WKH LQIRUPDQW ZDV FRPSOH[$GUXJGRJDOHUWHGRQWKHFDU$NH\ILWWLQJWKH VXSSRVHGWRRFFXU GRRURIsDPEX VDSDUWPHQWZDVIRXQGLQWKHFDU ,QDGGLWLRQ6DOJDGRZDVQRWKHOGDFFRXQWDEOHIRUWKHIXOO sDPEXQRWHVWKDWWKHGUXJGRJGLGQRWDOHUWWRKLV%XLFN DPRXQWRIFRFDLQHLQYROYHGLQWKHFRQVSLUDF\3RUWXRQGR +RZHYHUWKHGRJ VKDQGOHUWHVWLILHGWKDWKLVGRJZRXOGQRWEH *RQ]DOH] WROG LQYHVWLJDWRUV WKDW KH KDG PDGH IRXU WULSV WR DEOHWRGHWHFWWKHRGRUIURPFRFDLQHSODFHGLQDIUHVKEURZQ )ORULGD WR REWDLQ FRFDLQH LQFOXGLQJ WKH  JUDPV RI SDSHUEDJZKLFKZDVLQWKHWUXQNIRUDSHULRGRIVHYHQWRWHQ FRFDLQHVROGWR+HDWKRQ$SULO 7KHUHZDVHYLGHQFH PLQXWHVWKHDPRXQWRIWLPHLWWRRNsDPEXWRWUDYHOIURPKLV WKDW6DOJDGRKLPVHOIWUDQVSRUWHGVHYHQNLORJUDPVRIFRFDLQH DSDUWPHQWWR3RUWXRQGR*RQ]DOH] VUHVLGHQFHs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sDPEX GHOLYHUHG WKH ,Q 2ZXVX WKLV FRXUW SURSRVHG WKDW WKH WZRSDUW VWDQGDUG RI UHYLHZ

FRFDLQHDQGPDGHWKHVWDWHPHQWVDWWULEXWHGWRKLPDWVRPH XVHG LQ WKH FRQWH[W RI DJJUDYDWLQJ UROH DGMXVWPHQWV XQGHU ZKLFK D GLVWULFW

RWKHUORFDWLRQRQKLVZD\LQWRWKHUHVLGHQFH,WZDVIRUWKH FRXUW V IDFWXDO ILQGLQJV DUH UHYLHZHG IRU FOHDU HUURU ZKLOH LWV OHJDO

MXU\WRGHWHUPLQHWKHFUHGLELOLW\RI5RVDOH] VWHVWLPRQ\DQG FRQFOXVLRQV DUH UHYLHZHG GH QRYR ZRXOG EH HTXDOO\ DSSURSULDWH LQ WKH FRQWH[W RI PLWLJDWLQJ UROH DGMXVWPHQWV 6HH LG DW  Q 6LQFH WKH UHVXOW WKHZHLJKWWREHJLYHQWKDWWHVWLPRQ\sDPEX VFRQYLFWLRQV ZH UHDFK LQ WKH LQVWDQW FDVHV ZRXOG EH WKH VDPH XQGHU HLWKHU VWDQGDUG ZH QHHG QRW UHVROYH WKLV LVVXH KHUH  8QLWHG6WDWHVY6DOJDGRHWDO 1RV  1RV  8QLWHG6WDWHVY6DOJDGRHWDO  )RU SXUSRVHV RI DSSO\LQJ D PLQRU UROH DGMXVWPHQW XQGHU IRU FRQVSLUDF\ DQG SRVVHVVLRQ ZLWK WKH LQWHQW WR GLVWULEXWH †% E DPLQRUSDUWLFLSDQWPHDQVDQ\SDUWLFLSDQWZKR FRFDLQHDUHVXSSRUWHGE\VXIILFLHQWHYLGHQFH LVOHVVFXOSDEOHWKDQPRVWRWKHUSDUWLFLSDQWVEXWZKRVHUROH FRXOG QRW EH GHVFULEHG DV PLQLPDO  5REHUWV  )G DW ,,, $GPLVVLELOLW\RI6WDWHPHQWV8QGHU5XOH G  ( RI  866*†% E FRPPHQW Q  WKH)HGHUDO5XOHVRI(YLGHQFH $GHIHQGDQWZKRSOD\VDOHVVHUUROHLQDFULPLQDOVFKHPH 6DOJDGRDQGs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† %  7KLV VHFWLRQ SURYLGHV D UDQJH RI VWDWHPHQWVDUH PDGHWRNHHSDFRQVSLUDWRUDEUHDVWRIDFR DGMXVWPHQWVIRUDGHIHQGDQWZKRSOD\VDSDUWLQFRPPLWWLQJ FRQVSLUDWRU VDFWLYLWLHVRUWRLQGXFHFRQWLQXHGSDUWLFLSDWLRQLQ WKHRIIHQVHWKDWPDNHVKLPVXEVWDQWLDOO\OHVVFXOSDEOHWKDQWKH DFRQVSLUDF\RUWRDOOD\>KLV@IHDUV 5LRV)GDW DYHUDJHSDUWLFLSDQW,GEDFNJURXQGFRPPHQW TXRWLQJ8QLWHG6WDWHVY/D\WRQ)G WK&LU   FHUWGHQLHG86     7KHUHGXFWLRQIRUEHLQJDPLQLPDOSDUWLFLSDQWLQ†% D LVLQWHQGHGWRFRYHURQO\WKRVH GHIHQGDQWVZKRDUHSODLQO\ 7KHUHLVVXIILFLHQWHYLGHQFHLQWKHUHFRUGWRVXSSRUWWKHWULDO DPRQJWKHOHDVWFXOSDEOH SDUWLFLSDQWVLQWKHJURXSFRQGXFW FRXUW V GHWHUPLQDWLRQ WKDW D FRQVSLUDF\ H[LVWHG DQG WKDW VXFK DV WKRVH ZKR H[KLELW D ODFN RI NQRZOHGJH RU 6DOJDGRsDPEX3RUWXRQGR*DUFLD5RVDOH]DQG*DUFLDZHUH XQGHUVWDQGLQJRIWKHVFRSHDQGVWUXFWXUHRIWKHHQWHUSULVHDQG PHPEHUV RI WKH FRQVSLUDF\  )XUWKHU WKH VWDWHPHQWV LQ RI WKH DFWLYLWLHV RI RWKHUV  8QLWHG 6WDWHV Y 5REHUWV  TXHVWLRQ LQYROYHG PRUH WKDQ PHUH LGOH FKDWWHU  7KH )G    WK &LU  TXRWLQJ †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†%FRPPHQW Q ,WLV FRQVSLUDWRU RI WKH SURJUHVV RI WKH FRQVSLUDF\ DQG RI D FR LQWHQGHG WKDW WKH GRZQZDUG DGMXVWPHQW IRU D PLQLPDO FRQVSLUDWRU V DFWLYLWLHV ZDV SURSHUO\ IRXQG WR EH LQ SDUWLFLSDQW ZLOO EH XVHG LQIUHTXHQWO\  866* † % IXUWKHUDQFHRIWKHFRQVSLUDF\6HH5LRV)GDW FRPPHQW Q   8QLWHG6WDWHVY6DOJDGRHWDO 1RV  1RV  8QLWHG6WDWHVY6DOJDGRHWDO  EXLOGLQJ V SDUNLQJ ORW  sXVW DV WKH ORFN RQ D FDU GRRU LV 6DOJDGRDQGs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sDPEX VPRWLRQWRH[FOXGH DOOHJHGFRQYHUVDWLRQEHWZHHQsDPEXDQG3RUWXRQGR*RQ]DOHV WKHHYLGHQFHRIWKHNH\ILWWLQJWKHORFNWRKLVDSDUWPHQW ZKHQ sDPEX GHOLYHUHG WKH FRFDLQH VKRXOG QRW KDYH EHHQ DGPLWWHGEHFDXVHLWODFNHGVXIILFLHQWJXDUDQWHHVRIUHOLDELOLW\ 9,,6DOJDGR6HQWHQFLQJ,VVXHV 6DOJDGR FRQWHQGV WKDW ZKLOH 5RVDOH] GHVFULEHG WKLV FRQYHUVDWLRQ DV RFFXUULQJ LQ WKH NLWFKHQ WKH VXUYHLOODQFH $'HQLDORI0LWLJDWLQJ5ROH5HGXFWLRQ YLGHR WDSH VKRZHG WKDW ZKHQ sDPEX DUULYHG 3RUWXRQGR *RQ]DOH]ZDVRXWVLGHGRLQJ\DUGZRUN+RZHYHUHYHQLI 6DOJDGRFRQWHQGVWKDWKHVKRXOGKDYHUHFHLYHGDQRIIHQVH 5RVDOH]ZDVPLVWDNHQRUO\LQJDVWRZKHUHWKHFRQYHUVDWLRQ OHYHO UHGXFWLRQ IRU PLWLJDWLQJ UROH SXUVXDQW WR 866* EHWZHHQsDPEXDQG3RUWXRQGR*RQ]DOH]RFFXUUHGWKHMXU\ † % D  DV D PLQLPDO SDUWLFLSDQW  7KH JRYHUQPHQW FRXOGKDYHIRXQGWKDWWKHFRQYHUVDWLRQRFFXUUHGDWVRPHRWKHU RSSRVHGVXFKDUHGXFWLRQ,QUHMHFWLQJ6DOJDGR VFODLPWKDWKH ORFDWLRQDQGWKDWs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s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sDPEX VPHPEHUVKLSLQ ORFDWLRQZKHUHKHKDVDULJKWWREHWRGHWHUPLQHZKHWKHUWKH WKHFRQVSLUDF\ZDVSURGXFHGLQWKLVFDVHDQGWKHWULDOFRXUW NH\RSHUDWHVWKHORFNLVQRWDVHDUFK7KDWLVZKDWKDSSHQHG SURSHUO\ IRXQG WKDW WKH SUHUHTXLVLWHV IRU DGPLVVLRQ RI WKH LQWKHFDVHEHIRUHXV VWDWHPHQWVXQGHU5XOH G  ( KDGEHHQVDWLVILHG  sDPEXDUJXHVWKDWRQHKDVDJUHDWHUSULYDF\LQWHUHVWLQRQH V :KHUHLWKDVEHHQHVWDEOLVKHGE\DSUHSRQGHUDQFHRIWKH DSDUWPHQW WKDQ RQH GRHV LQ D YHKLFOH DQG WKDW WKHUHIRUH HYLGHQFHWKDWDFRQVSLUDF\H[LVWHGWKDWWKHGHIHQGDQWZDVD 'H%DUGHOHEHQZKLFKLQYROYHGDQDXWRPRELOHORFNVKRXOG PHPEHURIWKHFRQVSLUDF\DQGWKDWWKHVWDWHPHQWZDVPDGH QRW FRQWURO  +RZHYHU WKH ORFN WR sDPEX V DSDUWPHQW ZDV LQIXUWKHUDQFHRIWKHFRQVSLUDF\WKH&RQIURQWDWLRQFODXVH DFFHVVLEOHE\PHDQVRIDQXQORFNHGFRPPRQKDOOZD\ZKLFK GRHVQRWUHTXLUHDFRXUWWRHPEDUNRQDQLQGHSHQGHQWLQTXLU\ ZDVRSHQWRWKHSXEOLFs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

,9$GPLVVLELOLW\RI&RPSXWHU5HFRUGV EXLOGLQJ ZKHUH WKH DSDUWPHQW GRRU ZDV ORFDWHG ZDV DQ XQUHDVRQDEOH VHDUFK WKH FRXUW FRQFOXGHG WKDW WKH GHIHQGDQW KDG QR H[SHFWDWLRQ RI

sDPEXUDLVHVDVHUURUWKHDGPLVVLRQRIFHUWDLQWHOHSKRQHWROO SULYDF\ LQ WKH FRPPRQ DUHD RI WKH EXLOGLQJ :KLOH ZH QRWH WKDW WKH ODZ VHH 8QLWHG UHFRUGV RI 6RXWK &HQWUDO %HOO IRU WHOHSKRQH QXPEHUV LQ WKH 6HYHQWK &LUFXLW GLIIHUV IURP WKH ODZ LQ WKLV FLUFXLW 6WDWHV Y &DUULJHU  )G  WK &LU   UHFRJQL]LQJ WKDW WHQDQW VXEVFULEHGWRE\sDPEXDQG3RUWXRQGR*RQ]DOH]DVEXVLQHVV KDV UHDVRQDEOH H[SHFWDWLRQ RI SULYDF\ LQ ORFNHG FRPPRQ DUHDV RI DQ UHFRUGVXQGHU5XOH  RIWKH)HGHUDO5XOHVRI(YLGHQFH DSDUWPHQW FRPSOH[  WKDW LVVXH GRHV QRW FRQFHUQ XV KHUH ZKHUH LW LV ,Q UHYLHZLQJ D WULDO FRXUW V HYLGHQWLDU\ GHWHUPLQDWLRQV WKLV XQGLVSXWHG WKDW WKH FRPPRQ DUHD RQWR ZKLFK WKH GRRU RI s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s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sDPEX V DSDUWPHQW FRPSOH[ WKH 7DQJOHZRRG 6RXWK&HQWUDO%HOOWHOHSKRQHUHFRUGV+HLQGLFDWHGWKDWKH $SDUWPHQWV RQ %HUPXGD /DQH  2IILFHU 6HHO\H GHFLGHG WR ZDVWKHDXWKRUL]HGUHSUHVHQWDWLYHWREULQJUHFRUGVWRFRXUW LQYHVWLJDWHZKHWKHUWKHNH\ZDVWRsDPEX VDSDUWPHQWDVWKLV 7KHUHFRUGVLQTXHVWLRQFRQWDLQHGVXEVFULEHUOLQHLQIRUPDWLRQ ZRXOGEHHYLGHQFHRIsDPEX VFRQQHFWLRQWRWKHFRQVSLUDF\ LQFOXGLQJ WKH VXEVFULEHU V QDPH WKH ORFDWLRQ ZKHUH WKH +HSURFHHGHGWRWKHEXLOGLQJZKHUHsDPEX VDSDUWPHQWZDV WHOHSKRQHZDVLQVWDOOHGWKHGDWHDQGGXUDWLRQRIORFDODQG ORFDWHGDQGHQWHUHGWKURXJKDQXQORFNHGGRRULQWRDFRPPRQ ORQJGLVWDQFHWHOHSKRQHFDOOVWKHQXPEHUVIURPZKLFKFDOOV FRUULGRURSHQWRWKHSXEOLF2IILFHU6HHO\HNQHZWKHORFDWLRQ ZHUH SODFHG DQG DW ZKLFK WKH\ ZHUH UHFHLYHG DQG ELOOLQJ RIsDPEX VDSDUWPHQW+HLQVHUWHGWKHNH\LQWRWKHIURQWGRRU DPRXQWV,GSS7KHWHOHSKRQHQXPEHUVLQYROYHG RIsDPEX VDSDUWPHQWWRGHWHUPLQHZKHWKHUWKHNH\ZRUNHG LQWKHFDOOVZHUHUHFRUGHGE\FRPSXWHUFRQWHPSRUDQHRXVWR WKHORFNPHFKDQLVP+HOHDUQHGWKDWWKHNH\GLGRSHUDWHWKH WKHSKRQHFDOOEHLQJPDGHDQGUHFHLYHGDQGWKHLQIRUPDWLRQ ORFN EXW KH GLG QRW RSHQ WKH GRRU RU HQWHU WKH DSDUWPHQW ZDVWKHQVWRUHGLQWKHFRPSXWHUWREHGRZQORDGHGDVQHHGHG 7KLVRFFXUUHGDIWHUDQHDUOLHUVHDUFKRIs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sDPEX DUJXHV WKDW WKH IRXUWK UHTXLUHPHQW WKDW WKH WKHNH\KROHLVRSHQREYLRXVIDFLQJRXWLQWRWKHSXEOLFDUHD PHPRUDQGXP PXVW KDYH EHHQ PDGH E\ D SHUVRQ ZLWK QRWFRQFHDOHGZLWKXQUHVWULFWHGDFFHVV5HO\LQJRQ8QLWHG NQRZOHGJHRIWKHWUDQVDFWLRQRUIURPLQIRUPDWLRQWUDQVPLWWHG 6WDWHVY'H%DUGHOHEHQ)G WK&LU FHUWGHQLHG E\DSHUVRQZLWKNQRZOHGJHZDVQRWVDWLVILHGEHFDXVHWKH   86     WKH WULDO FRXUW FRQFOXGHG WKDW WKH DFWXDO UHFRUG ZDV PHPRULDOL]HG DQG HQWHUHG LQWR WKH LQVHUWLRQRIWKHNH\ZDVQRWDVHDUFKWKDWWKHGHIHQGDQWKDG FRPSXWHU VPHPRU\E\WKHFRPSXWHULWVHOIUDWKHUWKDQEHLQJ QRUHDVRQDEOHH[SHFWDWLRQRISULYDF\LQDNH\KROHWKDWZDV HQWHUHG E\ D SHUVRQ  6LPLODU UHFRUGV KDYH EHHQ KHOG RSHQWRWKHSXEOLFVLGHRIWKHGRRUDQGWKDWHYHQDVVXPLQJ VXIILFLHQWO\UHOLDEOHLQRWKHUFDVHV WKDW D VHDUFK KDG RFFXUUHG WKH LQWUXVLRQ ZDV PLQLPDO DQG MXVWLILHGE\WKHFLUFXPVWDQFHV7KHWULDOFRXUWDOVRIRXQGWKDW ,Q8QLWHG6WDWHVY/LQQ)G  WK&LU   WKH RIILFHU KDG ODZIXO SRVVHVVLRQ RI WKH NH\ DQG WKDW WKH WKHFRXUWKHOGWKDWDFRPSXWHUSULQWRXWVKRZLQJDFDOOSODFHG OHJLWLPDWHLQWHUHVWVRISURSHUFULPHLQYHVWLJDWLRQSHUPLWWHG IURPDKRWHOURRPZDVDGPLVVLEOHDVDEXVLQHVVUHFRUGZKHUH WHVWLQJWKHNH\LQWKHORFN WKHUHFRUGZDVJHQHUDWHGDXWRPDWLFDOO\DQGZDVUHWDLQHGLQ WKHRUGLQDU\FRXUVHRIEXVLQHVV,Q%ULVFRH )GDW  sDPEXGRHVQRWDSSHDUWRFRQWHVWWKHRIILFHU VYHUVLRQRI  WHOHSKRQH VXEVFULEHU GDWD HQWHUHG LQWR WKH FRPSXWHU ZKDW WUDQVSLUHG DQG WKH WULDO FRXUW V ILQGLQJV RI IDFW DUH FRQWHPSRUDQHRXVZLWKWKHSODFLQJRIHDFKWHOHSKRQHFDOODQG VXSSRUWHG E\ WKH HYLGHQFH DQG DUH QRW FOHDUO\ HUURQHRXV PDLQWDLQHG LQ WKH UHJXODU FRXUVH RI EXVLQHVV IRU ELOOLQJ 5DWKHUsDPEXDUJXHVWKDWKHKDGDQH[SHFWDWLRQRISULYDF\LQ  8QLWHG6WDWHVY6DOJDGRHWDO 1RV  1RV  8QLWHG6WDWHVY6DOJDGRHWDO  FRXUWV7KXV5XOH D LVSURSHUO\DSSOLHGWRH[WHQGWKH SXUSRVHV ZDV KHOG WR EH DGPLVVLEOH  ,Q 8QLWHG 6WDWHV Y WLPHSHULRGLQ† E ZKHUHWKHODVWGD\ZRXOGRWKHUZLVH 0LOOHU)G  WK&LU  WKHDGPLVVLRQRI IDOORQDGD\ZKHQWKHFRXUWKRXVHLVQRWRSHQIRUEXVLQHVVDQG FRPSXWHUJHQHUDWHG WROO DQG ELOOLQJ UHFRUGV PDGH WKHJRYHUQPHQWKDVQRDFFHVVWRWKHJUDQGMXU\RUWKHFOHUNRI FRQWHPSRUDQHRXVO\E\WKHFRPSXWHULWVHOIZDVXSKHOG FRXUW 0U'HHULQJWHVWLILHGWKDWKHGLGQRWNQRZWKHHUURUUDWHLQ 7KHWULDOFRXUWSURSHUO\GHQLHGsDPEX VPRWLRQWRGLVPLVV 6RXWK &HQWUDO %HOO V ELOOLQJ V\VWHP DQG WKDW KH ZDV WKHLQGLFWPHQWXQGHU† D   XQIDPLOLDUZLWKZKDWSURJUDPPLQJZDVHPSOR\HGWRHQVXUH DFFXUDF\DOWKRXJKKHGLGNQRZWKDWWKHUHZHUHSDUDPHWHUVIRU 9, $GPLVVLELOLW\ RI (YLGHQFH RI .H\ )LWWLQJ /RFN RI PHDVXUHPHQWV RI DFFXUDF\ UDWHV  sDPEX DUJXHV WKDW WKH $SDUWPHQW'RRU LQVWDQWFDVHLVWKXVGLVWLQJXLVKDEOHIURP%ULVFRHZKHUHWKH HYLGHQFHUHYHDOHGWKDWWKHFRPSXWHUVFDQQHGLWVHOIIRUHUURU sDPEXDUJXHVWKDWWKHWULDOFRXUWVKRXOGKDYHVXSSUHVVHG HYHU\ILIWHHQVHFRQGV6HH%ULVFRH )GDW  WHVWLPRQ\FRQFHUQLQJWKHIDFWWKDWDNH\IRXQGLQWKH0XVWDQJ ILWWKHORFNRIKLVDSDUWPHQWGRRU,QUHYLHZLQJDGHFLVLRQRQ 7KHJRYHUQPHQWLVQRWUHTXLUHGWRSUHVHQWH[SHUWWHVWLPRQ\ DVXSSUHVVLRQLVVXHZHUHYLHZWKHORZHUFRXUW VILQGLQJVRI DV WR WKH PHFKDQLFDO DFFXUDF\ RI WKH FRPSXWHU ZKHUH LW IDFWIRUFOHDUHUURUDQGLWVFRQFOXVLRQVRIODZGHQRYR8QLWHG SUHVHQWHG HYLGHQFH WKDW WKH FRPSXWHU ZDV VXIILFLHQWO\ 6WDWHVYs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†  K DUH H[FOXGHG LQ FRPSXWLQJ WKH WLPH IRU LQWHUQDO SURJUDPPLQJ HUURUV QRW D SUHUHTXLVLWH WR WKH ZLWKLQ ZKLFK DQ LQIRUPDWLRQ RU DQ LQGLFWPHQW PXVW EH ILOHG>@  86& DGPLVVLRQRIFRPSXWHUUHFRUGV 7KHUHFRUGLQGLFDWHVWKDW †  K  7KH JRYHUQPHQW FRUUHFWO\ QRWHV WKDW sDPEX V 0D\    0U'HHULQJWHVWLILHGWKDW6RXWK&HQWUDO%HOOUHOLHGRQWKHVH PRWLRQ IRU UHYRFDWLRQ RI WKH GHWHQWLRQ RUGHU ZKLFK ZDV GHFLGHG RQ sXO\  FRPSXWHUJHQHUDWHG UHFRUGV WR HQVXUH WKH DFFXUDF\ RI LWV   UHVXOWHG LQ D SHULRG RI H[FOXGDEOH WLPH XQGHU  86& ELOOLQJ  +H ZDV QRW UHTXLUHG WR WHVWLI\ FRQFHUQLQJ DQ\ †  K  ) H[FOXGDEOH WLPH LQFOXGHV SHULRGV RI GHOD\ UHVXOWLQJ IURP SURJUDPPLQJ IHDWXUHV ZKLFK ZHUH LQ SODFH WR JXDUDQWHH DQ\ SUHWULDO PRWLRQ IURP WKH ILOLQJ RI WKH PRWLRQ WKURXJK WKH FRQFOXVLRQ RI WKH KHDULQJ RQ RU RWKHU SURPSW GLVSRVLWLRQ RI VXFK PRWLRQ  7KH DFFXUDF\ UHFRUG DOVR LQGLFDWHV WKDW 0D\    WKH GDWH RI sDPEX V LQLWLDO DSSHDUDQFH DQG 0D\    WKH GDWH RI KLV GHWHQWLRQ KHDULQJ ZRXOG sDPEXDOVRDUJXHVWKDW0U'HHULQJZDVQRWTXDOLILHGWR DOVR EH H[FOXGDEOH DV D SHULRG RI GHOD\ UHVXOWLQJ IURP RWKHU SURFHHGLQJV WHVWLI\ FRQFHUQLQJ WKHVH UHFRUGV EHFDXVH KH ZDV QRW FRQFHUQLQJ WKH GHIHQGDQW>@  86& †  K  :ULJKW   )G VXIILFLHQWO\IDPLOLDUZLWKWKHFRPSXWHUV\VWHP0U'HHULQJ DW  GD\ RI GHWHQWLRQ KHDULQJ H[FOXGHG 8QLWHG 6WDWHV Y &UDZIRUG  WHVWLILHGWKDWKHZDVQRWWKHLQGLYLGXDOZKRSURJUDPPHGWKH  )G    WK &LU   GDWH RI ILUVW DSSHDUDQFH H[FOXGHG  FRPSXWHU  +RZHYHU LW LV QRW QHFHVVDU\ WKDW WKH FRPSXWHU SURJUDPPHU WHVWLI\ LQ RUGHU WR DXWKHQWLFDWH FRPSXWHU $OWKRXJK WKHVH DUJXPHQWV ZHUH QRW SUHVHQWHG WR WKH WULDO FRXUW WKH\ SURYLGH DGGLWLRQDO MXVWLILFDWLRQ IRU WKH GHQLDO RI sDPEX V PRWLRQ WR GLVPLVV  8QLWHG6WDWHVY6DOJDGRHWDO 1RV  1RV  8QLWHG6WDWHVY6DOJDGRHWDO  JHQHUDWHGUHFRUGV/LQQ)GDW 0LOOHU)GDW VXFK FRPSODLQW VKDOO EH GLVPLVVHG RU RWKHUZLVH GURSSHG  8QLWHG6WDWHVY<RXQJ%URV,QF)G  86&†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sDPEX RI WKH SULQWHG FRPSXWHU UHFRUGV DQG GLG QRW NQRZ ZKR ZDV DUUHVWHG RQ 0D\    WKH IRUPDO FRPSODLQW DQG SUHSDUHGWKHPZHUHQRWPDWWHUVWKDWSUHFOXGHGDGPLVVLRQRI IHGHUDODUUHVWZDUUDQWZHUHQRWILOHGRULVVXHGXQWLO0D\ GRFXPHQWV DV EXVLQHVV UHFRUGV   0U 'HHULQJ VXIILFLHQWO\    6LQFHQRIRUPDOIHGHUDOFKDUJHVZHUHSHQGLQJXQWLO GHPRQVWUDWHG WKDW KH ZDV IDPLOLDU ZLWK WKH UHFRUGNHHSLQJ 0D\ WKHLQGLFWPHQWUHWXUQHGRQsXQH ZDV V\VWHPHPSOR\HGE\%HOO6RXWK ILOHGZLWKLQWKHWKLUW\GD\OLPLW 7KH GLVWULFW FRXUW SURSHUO\ FRQFOXGHG WKDW WKH WHOHSKRQH 7KHWULDOFRXUWDOVRIRXQGWKDWWKHLQGLFWPHQWZDVWLPHO\ UHFRUGVLQTXHVWLRQZHUHWUXVWZRUWK\DQGWKDWWKHJRYHUQPHQW EHFDXVH WKH WKLUWLHWK GD\ IROORZLQJ 0D\    IHOO RQ KDGHVWDEOLVKHGDQDGHTXDWHIRXQGDWLRQIRUWKHDGPLVVLRQRI 6XQGD\ 0D\    DQG WKHUHIRUH WKH GHDGOLQH IRU WKRVHUHFRUGVDVEXVLQHVVUHFRUGVXQGHU5XOH   LQGLFWPHQWZDVH[WHQGHGWR0RQGD\sXQH 7KHWULDO FRXUWUHOLHGRQ5XOH D RIWKH)HGHUDO5XOHVRI&ULPLQDO 9&RPSOLDQFHZLWK6SHHG\7ULDO$FW 3URFHGXUHZKLFKSURYLGHVWKDWZKHUHWKHODVWGD\RIDSHULRG IDOOVRQD6DWXUGD\6XQGD\RUOHJDOKROLGD\WKHSHULRGUXQV sDPEX DOOHJHV WKDW WKH JRYHUQPHQW IDLOHG WR LQGLFW KLP XQWLOWKHHQGRIWKHQH[WGD\ZKLFKLVQRWRQHRIWKHVHGD\V ZLWKLQWKLUW\GD\VRIKLVDUUHVWRQ0D\ DVUHTXLUHG 5XOH  D  KDV EHHQ DSSOLHG WR H[WHQG WKH VWDWXWRU\ WLPH XQGHUWKH6SHHG\7ULDO$FW86&† E DQGWKDWWKH SHULRG IRU UHWXUQLQJ DQ LQGLFWPHQW  6HH 8QLWHG 6WDWHV Y LQGLFWPHQWUHWXUQHGDJDLQVWKLPRQsXQH VKRXOGKDYH :ULJKW )G  WK&LU FHUWGHQLHG86 EHHQGLVPLVVHGXQGHU86&† D  7KHGLVWULFW    %ODFNPRQ)GDW FRXUW V DSSOLFDWLRQ RI WKH 6SHHG\ 7ULDO $FW LV UHYLHZHG GH QRYR  8QLWHG 6WDWHV Y *UDHI  )G   WK &LU sDPEX DUJXHV WKDW 5XOH  D  VKRXOG QRW EH DSSOLHG WR    H[WHQGWKHWLPHOLPLWLQ†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†  E   ,I WKH WLPH OLPLW RI WKDW VHFWLRQ LV SXEOLFLQWHUHVWUHTXLUHV )XUWKHU† E UHTXLUHVWKDWWKH H[FHHGHGVXFKFKDUJHDJDLQVWWKDWLQGLYLGXDOFRQWDLQHGLQ LQGLFWPHQW EH ILOHG ZLWKLQ WKLUW\ GD\V ZLWK WKH FOHUN RI