5(&200(1'(' )25 3$57,$/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   !  s())5(< 5,''/(   /$9$1&( 7851$*(   %(51$5'  $/76+8/(5    'HIHQGDQWV$SSHOODQWV   $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R n.DWKOHHQ0F'RQDOG2j0DOOH\ 'LVWULFWsXGJH $UJXHG )HEUXDU\ 'HFLGHGDQG)LOHG 0D\ %HIRUH *8<1255,6DQG6,/(5&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8('   $OEHUW $ *LXOLDQL &OHYHODQG 2KLR sRKQ 3DWULFN 3DUNHU &OHYHODQG 2KLR 7LPRWK\ ) 6ZHHQH\ &OHYHODQG2KLRIRU$SSHOODQWVsXOLDs6WLOOHU81,7('   8QLWHG6WDWHVY 1RV  1RV  8QLWHG6WDWHVY  5LGGOHHWDO 5LGGOHHWDO 67$7(6 '(3$570(17 2) s867,&( 25*$1,=(' %LRQGLOORjVPXUGHUDQGWKH6WUROORHQWHUSULVHDQGZHKDYH &5,0( 5$&.(7((5,1*6(&7,21:DVKLQJWRQ'& GHWHUPLQHG DERYH WKDW WKH HQWHUSULVH VXIILFLHQWO\ DIIHFWHG IRU$SSHOOHH21%5,() $OEHUW$*LXOLDQL&OHYHODQG LQWHUVWDWHFRPPHUFH 2KLR sRKQ 3DWULFN 3DUNHU &OHYHODQG 2KLR 7LPRWK\ ) 6ZHHQH\&OHYHODQG2KLRIRU$SSHOODQWVsXOLDs6WLOOHU   86& †   ,OOHJDO *DPEOLQJ %XVLQHVV )UDQN s 0DULQH 81,7(' 67$7(6 '(3$570(17 2) $OWVKXOHUDQG5LGGOH s867,&( 25*$1,=(' &5,0(  5$&.(7((5,1* 6(&7,21 :DVKLQJWRQ '& &UDLJ 6 0RUIRUG 7KLVFRXUWKDVH[DPLQHG86&† DIWHU/RSH]DQG $66,67$1781,7('67$7(6$77251(<&OHYHODQG IRXQGLWWREHDYDOLGH[HUFLVHRIFRQJUHVVLRQDO&RPPHUFH 2KLRIRU$SSHOOHH &ODXVHSRZHU8QLWHG6WDWHVY:DOO )G WK &LU     ,Q :DOO ZH QRWHG WKDW DOWKRXJK WKH JDPEOLQJ BBBBBBBBBBBBBBBBB VWDWXWHGRHVQRWFRQWDLQDMXULVGLFWLRQDOHOHPHQWLWDGGUHVVHV D FRPPHUFLDO DFWLYLW\ XQOLNH WKH /RSH] VWDWXWH  23,1,21 )XUWKHUPRUH LWV OHJLVODWLYH KLVWRU\ SURYLGHV FRQJUHVVLRQDO BBBBBBBBBBBBBBBBB ILQGLQJVRILOOHJDOJDPEOLQJjVHIIHFWRQLQWHUVWDWHFRPPHUFH ILQGLQJVWKDWZHUHODFNLQJLQWKH*XQ)UHH6FKRRO=RQHV$FW $/$1 ( 1255,6 &LUFXLW sXGJH  'HIHQGDQWV %HUQDUG ,G DW    'HIHQGDQWV UHFRJQL]H WKH IXWLOLW\ RI WKHLU $OWVKXOHU sHIIUH\ 5LGGOH DQG /DYDQFH 7XUQDJH ZHUH FKDOOHQJHLQOLJKWRI:DOOEXWXUJHWKHFRXUWWRUHFRQVLGHU FRQYLFWHGE\DMXU\RI5,&25,&2FRQVSLUDF\ 86& :DOO WKLVZHFDQQRWGRDEVHQWDQHQEDQFUHKHDULQJ8QLWHG †  F   G DQGFRQGXFWLQJDQLOOHJDOJDPEOLQJEXVLQHVV 6WDWHVY6PLWK)G WK&LU  $Q\DV 86&†  DQG5LGGOHDQG7XUQDJHRIFRPPLWWLQJD DSSOLHGFKDOOHQJHLVLUUHOHYDQWVLQFH† GRHVQRWFRQWDLQ YLROHQW FULPH LQ IXUWKHUDQFH RI UDFNHWHHULQJ  86& DMXULVGLFWLRQDOHOHPHQWDQGWKHSURVHFXWLRQQHHGQRWSXWRQ †  7KH\DSSHDORQVHYHUDOJURXQGV7KH\DUJXHWKDWWKH HYLGHQFHRIDSDUWLFXODUFRQQHFWLRQZLWKLQWHUVWDWHFRPPHUFH GLVWULFWFRXUWHUUHGZKHQLWSHUPLWWHGWKHPWREHDEVHQWGXULQJ 6HH$EOHV)GDW UHMHFWLQJD† GHIHQGDQWjV YRLU GLUH DQG WKH\ DWWDFN WKHLU 5,&2 DQG YLROHQW FULPH SUHPLVHWKDWDmFULPLQDOVWDWXWHFRQVWLWXWLQJDYDOLGH[HUFLVH FRQYLFWLRQV RQ WKH JURXQGV WKDW WKHUH ZDV DQ LQVXIILFLHQW RIFRQJUHVVLRQDODXWKRULW\XQGHUWKH&RPPHUFH&ODXVHPD\ FRQQHFWLRQZLWKLQWHUVWDWHFRPPHUFH7KH\DOVRFODLPWKDW QHYHUWKHOHVV EH XQFRQVWLWXWLRQDO DV DSSOLHG WR D SDUWLFXODU WKHHYLGHQFHZDVLQVXIILFLHQWWRVXSSRUWFHUWDLQFRXQWVDJDLQVW GHIHQGDQWZKHQWKHVWDWXWHjVMXULVGLFWLRQDOUHTXLUHPHQWVKDYH WKHP DQG WKDW WKH GLVWULFW FRXUW HUUHG ZKHQ LW DOORZHG WKH EHHQPHWl  WHVWLPRQ\RIDZLWQHVVDIWHUWKHJRYHUQPHQWKDGFRQFOXGHGD SOHD EDUJDLQ ZLWK KLP ZKHQ LW GLG QRW JLYH D FRQVSLUDF\ ,,, ZLWKGUDZDO MXU\ LQVWUXFWLRQ DQG ZKHQ LW VHQWHQFHG WKHP ZLWKRXWSUHVHQWHQFHUHSRUWV:HDIILUPWKHGLVWULFWFRXUW )RUWKHIRUHJRLQJUHDVRQVWKHUXOLQJVRIWKHGLVWULFWFRXUW ZLWKUHVSHFWWRGHIHQGDQWVjYRLUGLUHDEVHQFHDQGWKHLQWHUVWDWH %HFDXVHUHVROXWLRQRIGHIHQGDQWVjLVVXHVFRQFHUQLQJWKHLU FRPPHUFHHOHPHQWVRI86&††  DQG  DUH YRLUGLUHDEVHQFHDQGWKHLQWHUVWDWHFRPPHUFHUHTXLUHPHQWV DIILUPHG PD\KDYHSUHFHGHQWLDOYDOXHWKRVHLVVXHVZLOOEHDGGUHVVHG EHORZ  7KH UHPDLQLQJ LVVXHV UDLVHG E\ GHIHQGDQWV DUH DGGUHVVHGLQDQXQSXEOLVKHGDSSHQGL[WRWKLVRSLQLRQ  8QLWHG6WDWHVY 1RV  1RV  8QLWHG6WDWHVY  5LGGOHHWDO 5LGGOHHWDO 86&†  D 7KHVWDWXWHGHILQHVmHQWHUSULVHlDVDQ , HQWLW\ZKLFKLVmHQJDJHGLQRUWKHDFWLYLWLHVRIZKLFKDIIHFW LQWHUVWDWHRUIRUHLJQFRPPHUFHl86&†  E   7KLV LV D FDVH DERXW WKUHH DFWRUV LQ WKH /HQLQH 6WUROOR EUDQFK RI /D &RVD 1RVWUD /&1  LQ <RXQJVWRZQ 2KLR :H DJUHH ZLWK WKH JRYHUQPHQW WKDW WKH MXULVGLFWLRQDO 6WUROOR UDQ VHYHUDO W\SHV RI JDPEOLQJ LQ WKH HQWHUSULVH SURYLVLRQLQWKHHQWHUSULVHGHILQLWLRQGLVWLQJXLVKHVWKHVWDWXWH LQFOXGLQJDQXPEHUVORWWHU\DQGGLFHJDPHVVRPHRIZKLFK IURP/RSH]EXWWKLVFRXUWKDVQRW\HWGHWHUPLQHGZKDWGHJUHH ZHUH SOD\HG DIWHUKRXUV DW VHYHUDO HVWDEOLVKPHQWV PDLQO\ RI FRQQHFWLRQ WR LQWHUVWDWH FRPPHUFH LV UHTXLUHG XQGHU 6KDUNH\jV  sHII %XWFK DQG sHIIjV  DQG WKH *UHHN &RIIHH †  7KHFRXUWVRIDSSHDOVIRURWKHUFLUFXLWVKDYHDSSOLHG +RXVH7KHVHJDPHVKDGRSHUDWHGLQ&DPSEHOO2KLRVLQFH WKHGHPLQLPLVVWDQGDUGIRUWKHXQGHUO\LQJ5,&2YLRODWLRQ DWOHDVWWKH VDQG6WUROOREHFDPHPRUHLQYROYHGDVKLV ZLWKRXWUHTXLULQJWKHYLROHQWDFWWRKDYHDFRQQHFWLRQZLWK SROLWLFDO LQIOXHQFH LQ WKH FRPPXQLW\ JUHZ XQWLO KH JDLQHG LQWHUVWDWHFRPPHUFH,Q8QLWHG6WDWHVY*UD\)G VROHFRQWURODIWHUKLVUHOHDVHIURPSULVRQLQ  WK&LU  WKH&RXUWRI$SSHDOVIRUWKH)RXUWK&LUFXLW DIILUPHGD†  FRQYLFWLRQEDVHGRQPXUGHULQIXUWKHUDQFH 6WUROOR FDPH WR UHO\ RQ GHIHQGDQW $OWVKXOHU DQG DQRWKHU RIDGUXJFRQVSLUDF\EHFDXVHLWIRXQGHYLGHQFHVXIILFLHQWWR DVVRFLDWHQDPHG/DZUHQFH*DURQRLQWKHJDPEOLQJHQWHUSULVH mPHHWWKHPLQLPDOVWDQGDUGUHTXLUHGWRVDWLVI\WKHLQWHUVWDWH $OWVKXOHU UDQ RU VXSHUYLVHG PRVW GLFH JDPHV DQG mVWDJl FRPPHUFH UHTXLUHPHQW RI †   E  l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†    FRQYLFWLRQ IRU PXUGHUV ZLWKRXW UHTXLULQJ WKH FRQYHUWHG6KDUNH\jVLQWRDQLJKWFOXEZLWKDFUDSVJDPHEXW PXUGHUVWRLPSDFWLQWHUVWDWHFRPPHUFH,QVWHDG WKH FRXUW WKHXQGHUWDNLQJIDLOHG7KH\KDGPRUHVXFFHVVZLWKJDPEOLQJ UHTXLUHG WKH SUHGLFDWH DFW PXUGHU  WR mEHDU D VWURQJ DWWKHUHVWDXUDQWFDOOHGsHII%XWFKDQGsHIIjV UHODWLRQVKLS WR UDFNHWHHULQJ DFWLYLW\ WKDW DIIHFWV LQWHUVWDWH FRPPHUFH>@l8QLWHG6WDWHVY0DSS)G G :KLOH6WUROOREXLOWKLVEXVLQHVV(UQLH%LRQGLOORDVDVHOI &LU FHUWGHQLHG86   7KHFRXUWIRXQGWKDW GHVLJQDWHG VXFFHVVRU WR 6WUROORjV PXUGHUHG ULYDO EHJDQ WR WKH PXUGHUV IXUWKHUHG D UDFNHWHHULQJ HQWHUSULVH ZKLFK ZDV FRQGXFWJDPLQJHYHQWV6WUROORIHOWWKDWKHZDVQRWJHWWLQJ LQYROYHG LQ UREELQJ D EXVLQHVV mHQJDJHG LQ LQWHUVWDWH KLVIDLUVKDUHDQGKHGHFLGHGWRNLOO%LRQGLOORGHOHJDWLQJWKH FRPPHUFHE\VHOOLQJJRRGVWKDWKDGEHHQREWDLQHGIURPRXW WDVNWR*DURQRDQGWKHQWR$OWVKXOHU ZKR JDYHWKHMREWR RI VWDWHl  ,G   7KLV FRQQHFWLRQ WR LQWHUVWDWH FRPPHUFH 5LGGOH5LGGOHLQWXUQLQYROYHG7XUQDJH5LGGOH7XUQDJH VXIILFHG:HDJUHHZLWKWKH&RXUWVRI$SSHDOVIRUWKH6HFRQG DQGDQRWKHUDVVRFLDWH*HRUJH:LONLQVVXUYHLOOHG%LRQGLOOR DQGWKH)RXUWK&LUFXLWVWKDW†  jVUHTXLUHPHQWVDUHPHWLI DQGVHWRXWRQHGD\ZLWKJXQVWRNLOOKLP WKHLUHIIRUWVFDPH WKHJRYHUQPHQWHVWDEOLVKHVDFRQQHFWLRQEHWZHHQWKH†  WR QDXJKW ZKHQ WKH\ FRXOG QRW ILQG %LRQGLOOR  5LGGOH DFWRIYLROHQFHDQGD5,&2HQWHUSULVHZKLFKKDVDGHPLQLPLV VXEVHTXHQWO\GHFLGHGKHVKRXOGQRWEHSUHVHQWDWWKHVKRRWLQJ LQWHUVWDWHFRPPHUFHFRQQHFWLRQ7KHJRYHUQPHQWKDVGRQH DQGIRXQGDVXEVWLWXWH 7XUQDJH:LONLQVDQGWKHVXEVWLWXWH VR KHUH  5LGGOH GRHV QRW FRQWHVW WKH FRQQHFWLRQ EHWZHHQ  8QLWHG6WDWHVY 1RV  1RV  8QLWHG6WDWHVY  5LGGOHHWDO 5LGGOHHWDO PHWRQsXQH EORFNHGRII%LRQGLOORj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jVFRQWDFWZLWKWKHSURVHFXWRUjVRIILFHVWDWHGWKDWWKH VXIILFLHQWXQGHUWKH+REEV$FWZKHQWKHUHZDVDmUHDOLVWLF RQO\ VROXWLRQ ZDV WR NLOO *DLQV EHIRUH KH DVVXPHG RIILFH SUREDELOLW\lWKDWVKHULIIjVGHSXWLHVIURPZKRPEULEHVZHUH 6WUROORSDVVHGWKHZRUGRQWR$OWVKXOHUZKRUHSOLHGm:HjOO H[WRUWHGZRXOGWXUQWRDQLQWHUVWDWHOHQGHUUHFRPPHQGHGE\ WDNHFDUHRILWl5LGGOHHQOLVWHG7XUQDJHDQG:LONLQVDQGLQ WKHGHIHQGDQWVKHULIILQRUGHUWRSD\WKHEULEHV  2FWREHU WKHWULRZHQWWRILQG*DLQVDWDUHVWDXUDQWLQ <RXQJVWRZQ WR NLOO KLP  WKH\ KDG WR DEDQGRQ WKHLU SODQ   86& †    9LROHQW &ULPHV LQ $LG RI KRZHYHUZKHQWKH\IRXQGWKHDUHDIXOORISROLFH7XUQDJH 5DFNHWHHULQJ  5LGGOH JDYHXSRQKDYLQJKLVFDVHIL[HGSOHDGHGJXLOW\WRUREEHU\ DQGZHQWWRMDLO5LGGOHWKHQUHFUXLWHGWZRRWKHUPHQWRNLOO 5LGGOHFODLPVWKDW86&†  LVGLUHFWO\FRQWUROOHG *DLQVEXWWKH\EXQJOHGWKHDWWHPSWOHDYLQJ*DLQVZRXQGHG E\/RSH]DQGWKDWKLVFRQYLFWLRQLVLQYDOLGEHFDXVHWKHEDVLV EXWDOLYH IRUKLV†  FRQYLFWLRQnWKHPXUGHURI%LRQGLOORnKDGQR FRQQHFWLRQ ZLWK LQWHUVWDWH FRPPHUFH  7KH JRYHUQPHQW 2Q'HFHPEHU WKHJRYHUQPHQWILOHGDQLQGLFWPHQW FRXQWHUV WKDW †    H[SUHVVO\ FRQWDLQV MXULVGLFWLRQDO DJDLQVW6WUROORDQGQLQHWHHQRIKLVDVVRFLDWHVODWHUUHSODFHG HOHPHQWVWKXVGLVWLQJXLVKLQJLWIURP/RSH] E\DVXSHUVHGLQJLQGLFWPHQWDJDLQVWWKLUWHHQGHIHQGDQWV7KH LQGLFWPHQW FKDUJHG $OWVKXOHU 5LGGOH DQG 7XUQDJH ZLWK 7KHVWDWXWHJRYHUQLQJYLROHQWFULPHVLQDLGRIUDFNHWHHULQJ YLRODWLRQVRI86&†  F DQG G  5,&2 DQG†  DFWLYLW\VWDWHV LOOHJDO JDPEOLQJ EXVLQHVV  DQG 5LGGOH DQG 7XUQDJH ZLWK YLRODWLRQ RI  86& †    YLROHQW FULPH LQ DLG RI :KRHYHU DV FRQVLGHUDWLRQ IRU WKH UHFHLSW RI RU DV UDFNHWHHULQJ  FRQVLGHUDWLRQ IRU D SURPLVH RU DJUHHPHQW WR SD\ DQ\WKLQJRISHFXQLDU\YDOXHIURPDQHQWHUSULVHHQJDJHG 2Q'HFHPEHU LQDSUHWULDOFRQIHUHQFHWKHSDUWLHV LQ UDFNHWHHULQJ DFWLYLW\ RU IRU WKH SXUSRVH RI JDLQLQJ UHTXHVWHGWKHXVHRIDMXURUTXHVWLRQQDLUH7KHJRYHUQPHQW HQWUDQFHWRRUPDLQWDLQLQJRULQFUHDVLQJSRVLWLRQLQDQ DVNHGIRUDQDQRQ\PRXVMXU\DQG6WUROORjVFRXQVHODVNHGWKDW HQWHUSULVH HQJDJHG LQ UDFNHWHHULQJ DFWLYLW\ PXUGHUV DOOSRWHQWLDOMXURUVEHTXHVWLRQHGLQGLYLGXDOO\LQWKHFRXUWjV NLGQDSV PDLPV DVVDXOWV ZLWK D GDQJHURXV ZHDSRQ FKDPEHUV7KHFRXUWQRWHGWKDW8QLWHG6WDWHV0DUVKDOVZRXOG FRPPLWVDVVDXOWUHVXOWLQJLQVHULRXVERGLO\LQMXU\XSRQ KDYHWRDFFRPSDQ\GHIHQGDQWVZKHUHYHUWKH\ZHQWDQGWKH RUWKUHDWHQVWRFRPPLWDFULPHRIYLROHQFHDJDLQVWDQ\ 0DUVKDOVjSUHVHQFHLQWKHFRXUWjVFKDPEHUVPLJKWSUHMXGLFH LQGLYLGXDO LQ YLRODWLRQ RI WKH ODZV RI DQ\ 6WDWH RU WKH GHIHQGDQWVE\VXJJHVWLQJWRSRWHQWLDOMXURUVWKDWGHIHQGDQWV 8QLWHG6WDWHVRUDWWHPSWVRUFRQVSLUHVVRWRGRVKDOOEH ZHUH GDQJHURXV  &RXQVHO UHVSRQGHG WKDW LW ZRXOG EH LQ SXQLVKHG>DFFRUGLQJWRWKHVHQWHQFHVWKDWIROORZ@ GHIHQGDQWVjLQWHUHVWWRZDLYHWKHLUULJKWWREHSUHVHQWLQRUGHU  8QLWHG6WDWHVY 1RV  1RV  8QLWHG6WDWHVY  5LGGOHHWDO 5LGGOHHWDO EXWRWKHUFRXUWVKDYHFRQILUPHGWKDWDGHPLQLPLVFRQQHFWLRQ WRSUHVHUYHWKHEHQHILWRILQGLYLGXDOTXHVWLRQLQJZLWKRXWWKH LVVWLOOVXIILFLHQW6HHHJ8QLWHG6WDWHVYsXYHQLOH0DOH SRWHQWLDO SUHMXGLFH RI WKH 0DUVKDOVj VHFXULW\  7KH FRXUW )G WK&LU   mZHFRQFOXGHWKDWDOO DJUHHGDQGLQVWUXFWHGWKHODZ\HUVWRWHOOWKHFRXUWLQZULWLQJ WKDW LV UHTXLUHG WR HVWDEOLVK IHGHUDO MXULVGLFWLRQ LQ D 5,&2 E\ sDQXDU\    LI WKH GHIHQGDQWV REMHFWHG WR WKLV SURVHFXWLRQ LV D VKRZLQJ WKDW WKH LQGLYLGXDO SUHGLFDWH SURFHGXUH7KHUHZHUHQRREMHFWLRQVDQGDWD)HEUXDU\ UDFNHWHHULQJ DFWV KDYH D GH PLQLPLV LPSDFW RQ LQWHUVWDWH  PHHWLQJGHIHQVHFRXQVHOGLVFXVVHGWKHSURSRVHGYRLU FRPPHUFHl 8QLWHG6WDWHVY0LOOHU)G G GLUHSURFHGXUHZLWKWKHLUFOLHQWVDWWKHFRXUWj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†  DYDLODEOHWRGHIHQGDQWVGXULQJWKHVFUHHQLQJSURFHVV PRQH\ ODXQGHULQJ  ZKLFK LQYROYHV ILQDQFLDO WUDQVDFWLRQV WKDW mLQ DQ\ ZD\ RU GHJUHH DIIHFW>@ LQWHUVWDWH RU IRUHLJQ 2Q )HEUXDU\    WKH FRXUW EHJDQ LQGLYLGXDOO\ FRPPHUFHlRULQYROYHmWKHXVHRIDILQDQFLDOLQVWLWXWLRQZKLFK TXHVWLRQLQJ WKH UHPDLQLQJ MXURUV LQ FKDPEHUV RQH E\ RQH LVHQJDJHGLQRUWKHDFWLYLWLHVRIZKLFKDIIHFWLQWHUVWDWHRU ZLWKGHIHQVHFRXQVHOSUHVHQW WKHLQGLYLGXDOYRLUGLUHSURFHVV IRUHLJQFRPPHUFHLQDQ\ZD\RUGHJUHHl 8QLWHG6WDWHVY ODVWHG IRU WKUHH GD\V  'HIHQGDQWV ZHUH SUHVHQW LQ WKH :DOO )GQ QRWLQJLQGLFWDWKDWVWDWXWHV FRXUWKRXVHRQWKHPRUQLQJRI)HEUXDU\EXWDWWKHVWDUWRI OLNH WKH FDUMDFNLQJ VWDWXWH ZKLFK mUHTXLUH>V@ WKDW WKH WKHDIWHUQRRQVHVVLRQRQWKDWGD\GHIHQVHFRXQVHOLQGLFDWHG JRYHUQPHQW SURYH WKDW WKH DFWLYLWLHV DW KDQG VXEVWDQWLDOO\ WRWKHFRXUWWKDWGHIHQGDQWVUHTXHVWHGSHUPLVVLRQWRUHWXUQWR UHODWHWRLQWHUVWDWHFRPPHUFHlFDOOIRUDmORZWKUHVKROGRI MDLOXQWLOWKHILQDOVWDJHVRIWKHMXU\VHOHFWLRQSURFHVV7KH SURRIRILQWHUVWDWHUHODWLRQl 8QLWHG6WDWHVY6PLWK)G FRXUWDIWHUFRQILUPLQJ ZLWKFRXQVHOGHIHQGDQWVjZDLYHURI  WK&LU  VWDWLQJDGHPLQLPLVVWDQGDUGIRU WKHLU ULJKW WR EH LQ WKH FRXUWKRXVH JUDQWHG GHIHQGDQWVj YLRODWLRQVRIWKH+REEV$FW86&† ZKLFKUHTXLUHV UHTXHVW2Q0DUFKGHIHQGDQWVUHWXUQHGWRWKHFRXUWURRP UREEHULHVWRmDIIHFW>@FRPPHUFHl EXWVHH8QLWHG6WDWHVY IRUWKHH[HUFLVHRISHUHPSWRU\FKDOOHQJHV7KHVHFKDOOHQJHV :DQJ  )G    WK &LU   UHTXLULQJ D ZHUHH[HUFLVHGLQVLGHEDUFRQIHUHQFHVLQWKHRSHQFRXUWURRP mVXEVWDQWLDOl FRQQHFWLRQ LQ +REEV $FW FDVHV ZKHQ DQ ZKHUHGHIHQGDQWVZHUHSUHVHQW LQGLYLGXDOUDWKHUWKDQDEXVLQHVVLVWKHYLFWLP  'XULQJ WKH VFUHHQLQJ RI WKH MXURUV WKH JRYHUQPHQW KDG :HKROGWKDWDGHPLQLPLVFRQQHFWLRQVXIILFHVIRUD5,&2 FRQFOXGHGDSOHDDJUHHPHQWZLWK6WUROORWKDWJDYHKLPWZHOYH HQWHUSULVHWKDWmDIIHFWVl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†  5,&2  $OWVKXOHUDQG5LGGOH LPSULVRQPHQW$IWHUWKHMXU\YHUGLFWWKHFRXUWGLGQRWRUGHU DSUHVHQWHQFHUHSRUWVWDWLQJWKDWLWKDGDGHTXDWHLQIRUPDWLRQ $OWVKXOHU DQG 5LGGOH DUJXH WKDW WKHLU 5,&2 FRQYLFWLRQV DOUHDG\ IURP SUHYLRXV SURFHHGLQJV  7KH FRXUW RIIHUHG WR XQGHU86&†  F DQG G ZHUHLQYDOLGEHFDXVHWKH VHQWHQFH WKH GHIHQGDQWV WKH IROORZLQJ ZHHN EXW GHIHQVH JRYHUQPHQWZDVREOLJHGXQGHU/RSH]WRVKRZDVXEVWDQWLDO FRXQVHODJUHHGWRGRWKHVHQWHQFLQJWKDWGD\7KHFRXUWJDYH HIIHFWRQLQWHUVWDWHFRPPHUFHDQGLWIDLOHGWRGRVRDOOHJLQJ WKH FRXQVHO WLPH WR JHW WKH GHIHQGDQWVj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jVDIIDLUVWKURXJKDSDWWHUQRI ,, UDFNHWHHULQJDFWLYLW\RUFROOHFWLRQRIXQODZIXOGHEW $9RLU'LUH  86& †   F   6XEVHFWLRQ G  PDNHV LW D FULPH WR FRQVSLUH WR YLRODWH F   %HFDXVH WKH VWDWXWH FRQWDLQV D 'HIHQGDQWVDUJXHWKDWWKH\GLGQRWHIIHFWLYHO\ZDLYHWKHLU MXULVGLFWLRQDOUHTXLUHPHQW WKHHQWHUSULVHPXVWEHHQJDJHGLQ ULJKWWREHSUHVHQWGXULQJYRLUGLUHEHFDXVHWKH\GLGQRWZDLYH RU DIIHFW FRPPHUFH  LW LV QRW FRQWUROOHG E\ /RSH] DQG WKH ULJKW LQ SHUVRQ EHIRUH WKH WULDO FRXUW  'HIHQGDQWV DUH DFFRUGLQJWRWKH6XSUHPH&RXUWZKHQD5,&2HQWHUSULVHLV HVVHQWLDOO\DVVHUWLQJWKDWDWULDOFRXUWPXVWHQJDJHDGHIHQGDQW mHQJDJHGLQlLQWHUVWDWHFRPPHUFHWKHJRYHUQPHQWGRHVQRW LQDQRQWKHUHFRUGFROORTX\EHIRUHDOORZLQJWKHGHIHQGDQWWR QHHG WR VKRZ WKDW WKH HQWHUSULVHjV HIIHFW RQ FRPPHUFH LV DEVHQWKLPVHOIIURPYRLUGLUHDQGWKDWIDLOXUHWRGRVRLVD mVXEVWDQWLDOl8QLWHG6WDWHVY5REHUWVRQ86  IXQGDPHQWDOVWUXFWXUDOHUURU:HGHFOLQHWRVRKROG    5REHUWVRQDIILUPHGD5,&2FRQYLFWLRQEDVHGRQ WKHRSHUDWLRQVRIDQ$ODVNDJROGPLQHZKLFKXVHGRXWRI $ FULPLQDO GHIHQGDQW KDV D FRQVWLWXWLRQDO ULJKW WR EH VWDWHZRUNHUVDQGVHQWJROGRXWRI$ODVNDDQGWKXVHQJDJHG mSUHVHQW DW DOO VWDJHV RI WKH WULDO ZKHUH KLV DEVHQFH PLJKW LQLQWHUVWDWHFRPPHUFH,G7KH&RXUWLQ5REHUWVRQUHVHUYHG IUXVWUDWH WKH IDLUQHVV RI WKH SURFHHGLQJV>@l  )DUHWWD Y WKH TXHVWLRQ RI ZKHWKHU D 5,&2 SURVHFXWLRQ EDVHG RQ DQ &DOLIRUQLD86 Q   8QLWHG6WDWHVY HQWHUSULVH WKDW mDIIHFWVl LQWHUVWDWH FRPPHUFH PXVW VKRZ D *LEEV)G WK&LU )HGHUDO5XOHRI mVXEVWDQWLDOlHIIHFW,G &ULPLQDO3URFHGXUHEXLOGVRQWKLVULJKWDQGPDQGDWHVWKDW m>W@KHGHIHQGDQWVKDOOEHSUHVHQWDWHYHU\VWDJHRIWKHWULDO 6LQFH WKH <RXQJVWRZQ HQWHUSULVH KHUH LV QRW mGLUHFWO\ LQFOXGLQJ WKH LPSDQHOLQJ RI WKH MXU\ DQG WKH UHWXUQ RI WKH HQJDJHG LQ WKH SURGXFWLRQ GLVWULEXWLRQ RU DFTXLVLWLRQ RI YHUGLFWl)(' 5 &5,0 3 D 7KLVULJKWLVPRUHH[WHQVLYH JRRGV RU VHUYLFHV LQ LQWHUVWDWH FRPPHUFHl LG DW  ZH WKDQWKDWJXDUDQWHHGE\WKH&RQVWLWXWLRQ*LEEV)GDW FRQVLGHU WKH UHTXLUHPHQWV IRU DQ HQWHUSULVH WKDW DIIHFWV  LQWHUVWDWH FRPPHUFH UDWKHU WKDQ RQH WKDW LV HQJDJHG LQ LQWHUVWDWHFRPPHUFH7KHTXHVWLRQRID5,&2HQWHUSULVHjV 7KHULJKWWREHSUHVHQWPD\EHZDLYHG5XOHDOORZVWKH QHFHVVDU\UHODWLRQVKLSWRLQWHUVWDWHFRPPHUFHKDVQRWEHHQ FRXUWWRFRQVLGHUWKHGHIHQGDQWWRKDYHZDLYHGWKHULJKWWREH H[SUHVVO\DGGUHVVHGE\WKLVFRXUWDIWHU5REHUWVRQDQG/RSH] SUHVHQWLIWKHGHIHQGDQWKDVEHHQLQLWLDOO\SUHVHQWDQGWKHQ  8QLWHG6WDWHVY 1RV  1RV  8QLWHG6WDWHVY  5LGGOHHWDO 5LGGOHHWDO VXEMHFWPDWWHUMXULVGLFWLRQWKDWLVWKHFRXUWjVSRZHUWRKHDU YROXQWDULO\OHDYHVDIWHUWKHWULDOKDVFRPPHQFHGmZKHWKHURU D FDVH  5DWKHU D FODLP RI DQ LQVXIILFLHQW FRQQHFWLRQ WR QRW WKH GHIHQGDQW KDV EHHQ LQIRUPHG E\ WKH FRXUW RI WKH LQWHUVWDWHFRPPHUFHLVDFKDOOHQJHWRRQHRIWKHHOHPHQWVRI REOLJDWLRQWRUHPDLQGXULQJWKHWULDOl )(' 5 &5,0 3 E  WKH JRYHUQPHQWjV FDVH DQG LV WKHUHIRUH FRQVLGHUHG D FODLP 'HIHQGDQWVDWWHPSWWRDYRLGWKHFRQFOXVLRQWKDWWKH\ZDLYHG DERXWWKHVXIILFLHQF\RIWKHHYLGHQFH6HH8QLWHG6WDWHVY WKHLUULJKWZKHQWKH\FRQVHQWHGWRWKHXVHRITXHVWLRQQDLUHV 'HJDQ )G WK&LU  H[SODLQLQJWKDW DQG UHTXHVWHG WR OHDYH WKH FRXUWKRXVH GXULQJ YRLU GLUH E\ GHIHQGDQWjVFKDOOHQJHWRDQLQWHUVWDWHFRPPHUFHQH[XVLQD VD\LQJWKDWZDLYHUE\WKHLUFRXQVHOZDVQRWHIIHFWLYHDVWKHLU FRQYLFWLRQXQGHU86&†  D  PXUGHUIRUKLUH KDG ZDLYHU7KLVFRXUWKDVKRZHYHUKHOGRWKHUZLVH,Q8QLWHG QRHIIHFWRQVXEMHFWPDWWHUMXULVGLFWLRQEXWZDVDFODLPDERXW 6WDWHV Y *DOOR  )G  WK &LU    ZH DJUHHG WKHVXIILFLHQF\RIWKHHYLGHQFH 8QLWHG6WDWHVY0DUWLQ ZLWK D GLVWULFW FRXUWjV GHWHUPLQDWLRQ WKDW D GHIHQGDQW KDG )G  WK&LU   VWDWLQJWKDWDFKDOOHQJHWR HIIHFWLYHO\ZDLYHGKLVULJKWWREHSUHVHQWZKHQKLVGHIHQVH  86& †  L jV LQWHUVWDWH FRPPHUFH HOHPHQW GLG QRW FRXQVHO UHOD\HG WKH KRVSLWDOL]HG GHIHQGDQWjV ZDLYHU RI DIIHFW VXEMHFW PDWWHU MXULVGLFWLRQ   'HIHQGDQWVj FODLP LV SUHVHQFHWRWKHFRXUW,GDW  WKHUHIRUH EHVW XQGHUVWRRG DV D IDFLDO FKDOOHQJH WR WKH FRQVWLWXWLRQDOLW\ RI ††    DQG   DQG DQ DVDSSOLHG 2I FRXUVH WKH ZDLYHU RI WKLV ULJKW DV ZLWK RWKHU FKDOOHQJHWRWKHVXIILFLHQF\RIWKHJRYHUQPHQWjVHYLGHQFHLQ FRQVWLWXWLRQDO ULJKWV PXVW EH NQRZLQJ DQG YROXQWDU\ WKH††  DQG FRQYLFWLRQV sRKQVRQY=HUEVW86    m$ZDLYHULV RUGLQDULO\DQLQWHQWLRQDOUHOLQTXLVKPHQWRUDEDQGRQPHQWRID ,QDWWDFNLQJWKHVWDWXWHVGHIHQGDQWVUHO\RQWKH6XSUHPH NQRZQULJKWRUSULYLOHJHl *LYHQWKHFKRLFHVSUHVHQWHGWR &RXUWjV RSLQLRQ LQ 8QLWHG 6WDWHV Y /RSH]  86  WKHGHIHQGDQWVDQGWKHLUVWUDWHJLFRSWLRQWREHDEVHQWWRDYRLG   ZKLFKLQYDOLGDWHGWKH*XQ)UHH6FKRRO=RQHV$FW  SUHMXGLFH WKH YROXQWDULQHVV RI WKHLU GHFLVLRQ LV FOHDU 86&†  T    EHFDXVH&RQJUHVVKDGLQVXIILFLHQWO\ 0RUHRYHU DV 5XOH  VXJJHVWV WKH &RQVWLWXWLRQ GRHV QRW HVWDEOLVKHGDFRQQHFWLRQZLWKLQWHUVWDWHFRPPHUFH7KHUHWKH UHTXLUHDFROORTX\RQWKHUHFRUGWRHVWDEOLVKDNQRZLQJZDLYHU 6XSUHPH&RXUWLGHQWLILHGWKUHHFDWHJRULHVRIDFWLYLWLHVWKDW RIWKHULJKWWREHSUHVHQW7D\ORUY8QLWHG6WDWHV86 &RQJUHVVPD\UHJXODWHXQGHULWVFRPPHUFHSRZHU   mWKH     ,Q7D\ORUDGHIHQGDQWIDLOHGWRUHWXUQIRU XVH RI WKH FKDQQHOV RI LQWHUVWDWH FRPPHUFHl    mWKH WKH DIWHUQRRQ VHVVLRQ RI KLV WULDO ZKLFK FRQWLQXHG LQ KLV LQVWUXPHQWDOLWLHVRILQWHUVWDWHFRPPHUFHRUSHUVRQVRUWKLQJV DEVHQFH WKH IROORZLQJ GD\  7KH 6XSUHPH &RXUW IRXQG DQ LQLQWHUVWDWHFRPPHUFHHYHQWKRXJKWKHWKUHDWPD\FRPHRQO\ HIIHFWLYHZDLYHULQKLVYROXQWDU\DEVHQFHHYHQWKRXJK WKH IURPLQWUDVWDWHDFWLYLWLHVl DQG  mWKRVHDFWLYLWLHVKDYLQJD WULDOFRXUWGLGQRWZDUQKLPRIKLVULJKWVDQGWKHFRQVHTXHQFHV VXEVWDQWLDOUHODWLRQWRLQWHUVWDWHFRPPHUFHl,GDW RI KLV DEVHQFH  7KH 6XSUHPH &RXUW UHDVRQHG WKDW LW ZDV FLWDWLRQ RPLWWHG   7KH VWDWXWH LQ /RSH] IHOO LQWR WKH WKLUG mZKROO\LQFUHGLEOHlWKDWWKHGHIHQGDQWZKRKDGEHHQSUHVHQW FDWHJRU\DQGWKH&RXUWGHWHUPLQHGWKDWDFWLYLWLHVUHJXODWHG DWWKHVWDUWRIKLVWULDOZDVXQDZDUHRIKLVULJKWWREHSUHVHQW ZLWKLQ WKLV FDWHJRU\ KDG WR mVXEVWDQWLDOO\ DIIHFWl LQWHUVWDWH ,GDW6LPLODUO\LQ8QLWHG6WDWHVY*DJQRQ86 FRPPHUFH,GDW 7KHVWDWXWHDWLVVXHGLGQRWVXUYLYH   DFDVHLQYROYLQJDQLQFDPHUDFRQIHUHQFHZLWKDMXURU FRQVWLWXWLRQDO VFUXWLQ\ IRU WZR UHDVRQV  LW ZDV D FULPLQDO WKH6XSUHPH&RXUWIRXQGWKDWmUHVSRQGHQWVjWRWDOIDLOXUHWR VWDWXWHWKDWKDGQRWKLQJWRGRZLWKFRPPHUFHDQGLWODFNHGD DVVHUW WKHLU ULJKWV WR DWWHQG WKH FRQIHUHQFH ZLWK WKH MXURU mMXULVGLFWLRQDOHOHPHQWZKLFKZRXOGHQVXUHWKURXJKFDVHE\ VXIILFHGWRZDLYHWKHLUULJKWVXQGHU5XOHl,GDW VHH FDVHLQTXLU\WKDWWKH>DFWLYLW\@LQTXHVWLRQDIIHFWVLQWHUVWDWH DOVR8QLWHG6WDWHVY+RO\ILHOG)G  WK&LU FRPPHUFHl,GDW    DIILUPLQJ D FRQYLFWLRQ ZKHQ WKH MXGJH DQG FRXQVHO  8QLWHG6WDWHVY 1RV  1RV  8QLWHG6WDWHVY 5LGGOHHWDO 5LGGOHHWDO FRQIHUHQFHFDOOHGWKHKRVSLWDOL]HGGHIHQGDQWZKRFRQYHUVHG GHQLDORIWKHULJKWWRDSXEOLFWULDOLVQRWVXEMHFWWRKDUPOHVV ZLWKKLVODZ\HUDQGDXWKRUL]HGKLVODZ\HUDQGWKHFRXUWWR HUURUDQDO\VLV 7RFUHDWHDQDXWRPDWLFUHYHUVDOUXOHIRUYRLU SURFHHGLQKLVDEVHQFH  GLUHDEVHQFHVZRXOGEHWRULVNLQWHUIHUHQFHZLWKWKHFKRLFHV PDGHE\FRXQVHODQGGHIHQGDQWIRUWKHGHIHQGDQWjVEHQHILW ,QWKLVFDVHGHIHQVHFRXQVHOVXJJHVWHGGHIHQGDQWVjDEVHQFH +HUHIRULQVWDQFHGHIHQGDQWVjDEVHQFHZDVSDUWRIDGHIHQVH DQG WKH FRXUW DOORZHG WKH ZDLYHU RQO\ DIWHU LW LQVWUXFWHG VWUDWHJ\WRDYRLGDQ\SUHMXGLFHUHVXOWLQJIURPWKHDSSHDUDQFH GHIHQVH FRXQVHO WR FRQVXOW ZLWK WKHLU FOLHQWV DQG  WKHQ RI KHDY\ VHFXULW\ GXULQJ WKH TXHVWLRQLQJ RI WKH SRWHQWLDO UHFHLYHGDVVXUDQFHIURPGHIHQVHFRXQVHOWKDWWKHGHIHQGDQWV MXURUV  1R SXUSRVH ZRXOG EH VHUYHG E\ D SHU VH UXOH WKDW ZDLYHGWKHLUULJKWWREHSUHVHQW7RKROGWKDWVXFKDZDLYHU HOLPLQDWHGWKLVVROXWLRQWRGHIHQGDQWVjGLOHPPD6XFKDUXOH RIDGHIHQGDQWjVYRLUGLUHSUHVHQFHZRXOGEHHIIHFWLYHRQO\ ZRXOGDOVRLQYLWHmVDQGEDJJLQJlE\GHIHQGDQWVVHHNLQJWRZLQ DIWHU DQ RQWKHUHFRUG FROORTX\ ZLWK WKH GHIHQGDQW ZRXOG DUHYHUVDORQLVVXHVQHYHUSUHVHQWHGWRWKHWULDOFRXUW:H FUHDWHDEXUGHQVRPHDQGLPSUDFWLFDOUXOH,QGHHGVXFKDUXOH GHFOLQHWRH[SDQGWKHOLPLWHGOLVWRIVWUXFWXUDOULJKWVZKRVH ZRXOGHIIHFWLYHO\VWRSWKHSURFHHGLQJVZKHQHYHUDGHIHQGDQW YLRODWLRQFRQVWLWXWHVSHUVHHUURUE\DGGLQJWKHGHIHQGDQWjV UHIXVHGWRUHWXUQWRFRXUW:HKROGWKDWGHIHQGDQWVj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†  5,&2 RI GHIHQGDQWV IURP D SRUWLRQ RI YRLU GLUH DQG SODLQ HUURU DQG86&†  JDPEOLQJ DQG5LGGOHXQGHU86& UHYLHZWRGHIHQGDQWVjH[FOXVLRQIURPSHUHPSWRU\FKDOOHQJHV  †   YLROHQFHLQIXUWKHUDQFHRIUDFNHWHHULQJ EHFDXVHWKH $Q\HUURULQDGHIHQGDQWjVYRLUGLUHDEVHQFHLVQRWDmGHIHFW JRYHUQPHQW GLG QRW VKRZ D VXEVWDQWLDO HIIHFW RQ LQWHUVWDWH DIIHFWLQJ WKH IUDPHZRUN ZLWKLQ ZKLFK WKH WULDO SURFHHGVl FRPPHUFH  'HIHQGDQWV UDLVH WKHLU LQWHUVWDWH FRPPHUFH $UL]RQDY)XOPLQDQWH 86    QRULVLWRQH DUJXPHQWIRUWKHILUVWWLPHRQDSSHDO7KHFODLPPD\RQO\EH RI WKRVH HUURUV WKDW mQHFHVVDULO\ UHQGHU>V@ D WULDO UHYLHZHGIRUSODLQHUURU6HH8QLWHG6WDWHVY*D\GRV IXQGDPHQWDOO\ XQIDLUl 5RVH Y &ODUN  86   )G  G&LU   UHYLHZLQJIRUSODLQHUURUWKH   FRPSDUH*LGHRQY:DLQZULJKW86   FODLP WKDW WKH HYLGHQFH ZDV LQVXIILFLHQW WR HVWDEOLVK D UHYHUVDOUHTXLUHGIRUWKHFRPSOHWHGHQLDORIWULDOFRXQVHO FRQQHFWLRQWRLQWHUVWDWHFRPPHUFHLQDQH[SORVLYHVFDVH  7XPH\Y2KLR86    UHYHUVDOUHTXLUHG ZKHQDMXGJHKDVDILQDQFLDOLQWHUHVWLQFRQYLFWLRQGHVSLWHD 'HIHQGDQWV HUU LQ DVVHUWLQJ WKDW WKH LQWHUVWDWH FRPPHUFH ODFNRILQGLFDWLRQWKDWELDVLQIOXHQFHGGHFLVLRQV 9DVTXH]Y DUJXPHQWJRHVWRWKHFRXUWjVVXEMHFWPDWWHUMXULVGLFWLRQ7KLV +LOOHU\86    GLVFULPLQDWLRQLQWKH FRXUWKDVH[SODLQHGWKDWWKHLQWHUVWDWHFRPPHUFHUHTXLUHPHQW JUDQGMXU\LVQRWVXEMHFWWRKDUPOHVVHUURUUHYLHZ 0F.DVNOH ZKLOHUHIHUUHGWRDVDmMXULVGLFWLRQDOlHOHPHQWGRHVQRWDIIHFW Y:LJJLQV86Q    GHQLDORIWKH ULJKWWRVHOIUHSUHVHQWDWLRQDWWULDOLVQRWVXEMHFWWRKDUPOHVV HUURUUHYLHZ :DOOHUY*HRUJLD86  Q     $OWVKXOHU ZDV QRW FRQYLFWHG XQGHU  86& †