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

:,//,$0 + 3$<721 ; 3HWLWLRQHU$SSHOODQW    1R Y  !  $17+21< %5,*$12  5HVSRQGHQW$SSHOOHH  $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1R nsDPHV/*UDKDP'LVWULFWsXGJH $UJXHG sXQH 'HFLGHGDQG)LOHG sXO\ %HIRUH %2**6DQG68+5+(,15,&+&LUFXLWsXGJHV &/(/$1''LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' +/RXLV6LUNLQ6,5.,13,1$/(60(=,%29 6&+:$57=&LQFLQQDWL2KLRIRU$SSHOODQW6WHSKDQLH / :DWVRQ 2)),&( 2) 7+( $77251(< *(1(5$/

7KH +RQRUDEOH 5REHUW + &OHODQG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  3D\WRQY%ULJDQR 1R 1R 3D\WRQY%ULJDQR  &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR UHYLHZZKLFKGLGQRWFRQFOXGHXQWLOWKH2KLR6XSUHPH&RXUW IRU $SSHOOHH  21 %5,()   + /RXLV 6LUNLQ sHQQLIHU 0 GHQLHGKLVSHWLWLRQRQ$SULO 7KXVKHFODLPVWKDWKH .LQVOH\/DXUD$$EUDPV6,5.,13,1$/(60(=,%29 KDG XQWLO $SULO    WR ILOH KLV IHGHUDO KDEHDV FRUSXV 6&+:$57=&LQFLQQDWL2KLRIRU$SSHOODQW.DWKHULQH SHWLWLRQ (3ULGHPRUH2)),&(2)7+($77251(<*(1(5$/ &255(&7,216/,7,*$7,216(&7,21&LQFLQQDWL2KLR 3D\WRQjVDUJXPHQWIDLOV3D\WRQjVLQHIIHFWLYHDVVLVWDQFHRI IRU$SSHOOHH WULDOFRXQVHOFODLPDOEHLWUDLVHGIRUWKHILUVWWLPHZDVEURXJKW DV SDUW RI WKH FROODWHUDO SURFHHGLQJV QRW WKH GLUHFW UHYLHZ BBBBBBBBBBBBBBBBB SURFHVV  $V VXFK LW IDOOV ZLWKLQ WKH SODLQ ODQJXDJH RI † G  QRW† G  $  23,1,21 BBBBBBBBBBBBBBBBB ,,, 68+5+(,15,&+&LUFXLWsXGJH3HWLWLRQHU:LOOLDP+ 7KHMXGJPHQWRIWKHGLVWULFWFRXUWLV$)),50(' 3D\WRQDSSHDOVIURPWKHRUGHURIGLVWULFWFRXUWGLVPLVVLQJKLV SHWLWLRQIRUZULWRIKDEHDVFRUSXVXQGHU86&†DV WLPHEDUUHGE\WKHRQH\HDUVWDWXWHRIOLPLWDWLRQVLQ86& †:H$)),50 , 3D\WRQZDVFRQYLFWHGRIPXUGHURQ$XJXVW DQG LPSULVRQHG6HH6WDWHY3D\WRQ1R &5 2KLR&W &RPP3O$XJ  +HDSSHDOHG2Q$XJXVW  WKH &RXUW RI $SSHDOV IRU WKH 7ZHOIWK $SSHOODWH 'LVWULFW RI 2KLRDIILUPHGKLVFRQYLFWLRQ6HH6WDWHY3D\WRQ1R&$   :/  2KLR&W$SS$XJ  2Q sDQXDU\    WKH 2KLR 6XSUHPH &RXUW GLVPLVVHG KLV GLUHFWDSSHDOIRUIDLOXUHWRVWDWHDVXEVWDQWLDOFRQVWLWXWLRQDO TXHVWLRQ6HH6WDWHY3D\WRQ1(G 2KLR   3D\WRQGLGQRWDSSHDOWRWKH8QLWHG6WDWHV6XSUHPH&RXUW  %\ FRQWUDVW D 5XOH  % DSSOLFDWLRQ FODLPLQJ LQHIIHFWLYH DVVLVWDQFH 3D\WRQ ILOHG D SHWLWLRQ IRU SRVWFRQYLFWLRQ UHOLHI LQ VWDWH RI DSSHOODWH FRXQVHO LV FRQVLGHUHG D SDUW RI WKH GLUHFW DSSHDO SURFHVV FRXUW RQ 6HSWHPEHU     7KH WULDO FRXUW JUDQWHG XQGHU †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sRKQVRQ Y 8QLWHG 6WDWHV  WKDWWKHWULDOFRXUWHUUHGE\GLVPLVVLQJ3D\WRQjVSHWLWLRQEDVHG )G   Q WK &LU  GLFWD VDPH   3D\WRQY%ULJDQR 1R 1R 3D\WRQY%ULJDQR  UHYLHZl† G  $VWKHGLVWULFWFRXUWREVHUYHG m7KH RQ UHV MXGLFDWD EHFDXVH KH GLG QRW KDYH QHZ FRXQVHO RQ SODLQODQJXDJHRIWKHVWDWXWHLQGLFDWHVWKDWDQDSSOLFDWLRQIRU DSSHDO  EXW WKDW 3D\WRQ KDG IDLOHG WR VXEPLW VXIILFLHQW VWDWHSRVWFRQYLFWLRQRURWKHUFROODWHUDOUHOLHIGRHVQRWVHUYH HYLGHQFHWRGHPRQVWUDWHVXEVWDQWLYHJURXQGVIRUUHOLHI2Q WRGHOD\WKHGDWHRQZKLFKDMXGJPHQWEHFRPHVILQDO5DWKHU $SULO WKH2KLR6XSUHPH&RXUWGHFOLQHGWRH[HUFLVH VXFK OLPLWDWLRQV PHUHO\ WROO WKH UXQQLQJ RI WKH VWDWXWH RI LWVGLVFUHWLRQDU\MXULVGLFWLRQRYHUWKHSHWLWLRQKROGLQJWKDWLW OLPLWDWLRQV† G  l,QVKRUWWKHVWDWXWHPDNHVDFOHDU IDLOHGWRVWDWHDVXEVWDQWLDOFRQVWLWXWLRQDOTXHVWLRQ6HH6WDWH GLVWLQFWLRQEHWZHHQWKHFRQFOXVLRQRIGLUHFWDSSHDOVDQGSRVW Y3D\WRQ 1(G 2KLR   FRQYLFWLRQ UHOLHI  3D\WRQjV DVVHUWLRQV WR WKH FRQWUDU\ DUH XQSHUVXDVLYH3D\WRQjVDUJXPHQWLVZLWKRXWPHULW 3D\WRQILOHGWKLVIHGHUDOKDEHDVSHWLWLRQRQ$SULO  7KHGLVWULFWFRXUWGLVPLVVHGLWRQ)HEUXDU\ DVWLPH % EDUUHGE\WKHRQH\HDUVWDWXWHRIOLPLWDWLRQVHVWDEOLVKHGE\WKH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW RI   3D\WRQDOVRDVVHUWVWKDWWKHSHULRGIRUSHWLWLRQLQJWKH8QLWHG $('3$   86& †  G    7KH GLVWULFW FRXUW 6WDWHV6XSUHPH&RXUWIRUDZULWRIFHUWLRUDULH[WHQGVWKHVWDUW GHWHUPLQHGWKDWEHFDXVH3D\WRQjVFDVHZDVGHFLGHGSULRUWR GDWHRIWKHRQH\HDUSHULRGIRUVHHNLQJSRVWFRQYLFWLRQUHOLHI WKHDGRSWLRQRI$('3$KLVRQH\HDUFORFNVWDUWHGUXQQLQJRQ XQGHU† G  :HUHFHQWO\UHMHFWHGWKLVDUJXPHQWLQ $SULO WKHGDWHWKH$('3$ZDVSDVVHG7KHFRXUW ,VKDP6HH,VKDP)GDW  KROGLQJWKDWm† G IXUWKHU UHDVRQHG WKDW XQGHU WKH $('3$jV VWDWXWH RI GRHVQRWWROOWKHOLPLWDWLRQVSHULRGWRWDNHLQWRDFFRXQWWKH OLPLWDWLRQVSURYLVLRQV3D\WRQjVPRWLRQVIRUSRVWFRQYLFWLRQ WLPH LQ ZKLFK D GHIHQGDQW FRXOG KDYH SRWHQWLDOO\ ILOHG D UHOLHILQVWDWHFRXUWPHUHO\WROOHGUDWKHUWKDQUHVHWWKDWRQH SHWLWLRQIRUFHUWLRUDULZLWKWKH8QLWHG6WDWHV6XSUHPH&RXUW \HDUFORFN$IWHUVXEWUDFWLQJWKHWLPHGXULQJZKLFK3D\WRQ IROORZLQJDVWDWHFRXUWjVGHQLDORISRVWFRQYLFWLRQUHOLHIl  KDGSRVWFRQYLFWLRQDFWLRQVSHQGLQJLQVWDWHFRXUWIURPWKH RQH\HDU SHULRG HQGLQJ $SULO    WKH FRXUW KHOG WKDW (YHQ LI WKH QLQHW\ GD\V ZHUH DGGHG WR WKH WROOLQJ WLPH 3D\WRQjVIHGHUDOSHWLWLRQZDVGXHRQRUEHIRUH1RYHPEHU 3D\WRQVWLOOILOHGKLVSHWLWLRQRXWRIWLPH7KDWLVHYHQLIWKH  3D\WRQjV$SULO ILOLQJZDVWKHUHIRUHXQWLPHO\ QLQHW\GD\SHULRGZHUHDGGHGWRWKHWROOLQJSHULRG3D\WRQjV SHWLWLRQ ZRXOG KDYH EHHQ GXH EHIRUH )HEUXDU\    3D\WRQILOHGDQRWLFHRIDSSHDORQ)HEUXDU\7KH QLQHW\GD\VDIWHUWKH1RYHPEHU GHDGOLQH  GLVWULFWFRXUWVXEVHTXHQWO\FHUWLILHGWKHTXHVWLRQRIZKHWKHU 3D\WRQjV SHWLWLRQ ZDV ILOHG ZLWKLQ WKH $('3$jV VWDWXWH RI & OLPLWDWLRQV7KHFDVHZDVWKHQUHPDQGHGWRWKHGLVWULFWFRXUW IRUFRQVLGHUDWLRQLQOLJKWRI6ODFNY0F'DQLHO 86 $OWHUQDWLYHO\3D\WRQDUJXHVWKDWKHVDWLVILHGWKHVWDWXWHRI OLPLWDWLRQVUHTXLUHPHQWEHFDXVHKLVLQHIIHFWLYHDVVLVWDQFHRI WULDOFRXQVHOFODLPLQDVPXFKDVLWZDVSURSHUO\UDLVHGIRUWKH ILUVWWLPHGXULQJFROODWHUDODWWDFNZDVVWLOOLQDVWDJHRIGLUHFW  7KH 2KLR 6XSUHPH &RXUW KDV UHFRJQL]HG WKDW VLQFH DQ DWWRUQH\  ,Q FRQWUDVW XQGHU †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sXQH    7KXV WKH TXHVWLRQ FHUWLILHG RQ DSSHDO LV 6HDUF\Y&DUWHU)G WK&LU ,VKDPY ZKHWKHU3D\WRQjVSHWLWLRQIRUZULWRIKDEHDVFRUSXVZDVILOHG 5DQGOH)G   WK&LU FHUWGHQLHG ZLWKLQ WKH RQH\HDU VWDWXWH RI OLPLWDWLRQV HVWDEOLVKHG E\ 6&W  %URZQY2j'HD)G WK 86&† G  &LU YDFDWHGRQRWKHUJURXQGVE\%URZQY2j'HD 866&W   ,, :LWKWKHRQH\HDUJUDFHSHULRGJLYHQWRSUH$('3$FDVHV 6HFWLRQDXWKRUL]HVDIHGHUDOFRXUWWRJUDQWDZULWRI 3D\WRQKDGXQWLO$SULO WRILOHKLVKDEHDVSHWLWLRQRU KDEHDVFRUSXVWRVWDWHSULVRQHUVLIWKH\DUHKHOGmLQFXVWRG\LQ FROODWHUDODFWLRQ3D\WRQILOHGDPRWLRQIRUSRVWFRQYLFWLRQ YLRODWLRQRIWKH&RQVWLWXWLRQRUODZVRUWUHDWLHVRIWKH8QLWHG UHOLHI RQ 6HSWHPEHU    GXULQJ WKH RQH\HDU JUDFH 6WDWHVl86&† D 7KLVFRXUWUHYLHZVDGLVWULFW SHULRGWKHUHE\WROOLQJWKHOLPLWDWLRQVSHULRGXQGHU86& FRXUWjVGHFLVLRQLQDKDEHDVSURFHHGLQJGHQRYR+DUULVY † G  7KXVDWWKDWSRLQWGD\VKDGUXQ $SULO 6WRYDOO)G   WK&LU FHUWGHQLHG  WR6HSWHPEHU HTXDOVGD\V 7KHFORFNGLG 6&W   QRWEHJLQWRUXQDJDLQXQWLO$SULO ZKHQWKH2KLR 6XSUHPH&RXUWGHQLHG3D\WRQjVDSSHDO3D\WRQWKHQKDG $('3$ VWDWHV WKDW D m \HDU SHULRG RI OLPLWDWLRQV VKDOO GD\V OHIW WR ILOH KLV KDEHDV SHWLWLRQ  GD\V LQ RQH \HDU DSSO\WRDQDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVE\DSHUVRQ PLQXV  GD\V WKDW KDG DOUHDG\ UXQ HTXDOV  GD\V LQ FXVWRG\ SXUVXDQW WR WKH MXGJPHQW RI D 6WDWH FRXUWl UHPDLQLQJ 3D\WRQWKHUHIRUHKDGXQWLO1RYHPEHU WR 86&† G  7KHVWDWXWHRIOLPLWDWLRQVEHJLQVWR ILOHWKHLQVWDQWKDEHDVSHWLWLRQ+RZHYHUKHGLGQRWILOHKLV UXQIURPWKHODWHVWRIIRXUFLUFXPVWDQFHVRQHRIZKLFKLVWKH IHGHUDOKDEHDVSHWLWLRQXQWLO$SULO ZHOOEH\RQGWKH mGDWHRQZKLFKWKHMXGJPHQWEHFDPHILQDOE\WKHFRQFOXVLRQ RQH\HDUOLPLWDWLRQVSHULRG7KXVWKHGLVWULFWFRXUWGLGQRW RIGLUHFWUHYLHZRUH[SLUDWLRQRIWKHWLPHIRUVHHNLQJVXFK HUULQKROGLQJWKDW3D\WRQjVSHWLWLRQZDVEDUUHGXQGHUWKHRQH UHYLHZl86&† G  $ 7KHRQH\HDUSHULRGLV \HDUVWDWXWHRIOLPLWDWLRQVIRXQGLQ† G  WROOHGKRZHYHUIRUWKDWDPRXQWRIWLPHLQZKLFKmDSURSHUO\ ILOHGDSSOLFDWLRQIRU6WDWHSRVWFRQYLFWLRQRURWKHUFROODWHUDO $ UHYLHZ ZLWK UHVSHFW WR WKH SHUWLQHQW MXGJPHQW RU FODLP LV SHQGLQJl86&†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†  G  $  SURYLGHV WKDW WKH  VWDWXWHRIOLPLWDWLRQVEHJLQVWRUXQIURPmWKHGDWHRQZKLFK 6ODFN KROGV WKDW ZKHUH D GLVWULFW FRXUW GHQLHV D KDEHDV SHWLWLRQ RQ WKHMXGJPHQWEHFDPHILQDOE\FRQFOXVLRQRIGLUHFWUHYLHZRU SURFHGXUDO JURXQGV ZLWKRXW UHDFKLQJ WKH SHWLWLRQHUjV XQGHUO\LQJ WKH H[SLUDWLRQ RI WKH WLPH IRU VHHNLQJ VXFK UHYLHZl FRQVWLWXWLRQDO FODLP LQ RUGHU IRU D FHUWLILFDWH RI DSSHDODELOLW\ WR LVVXH WKH SHWLWLRQHU PXVW VKRZ WKDW UHDVRQDEOH MXULVWV ZRXOG ILQG LW GHEDWDEOH † G  $  HPSKDVLVDGGHG %\FRQWUDVWWKHWROOLQJ  ZKHWKHU WKH SHWLWLRQ VWDWHV D YDOLG FODLP RI WKH GHQLDO RI D SURYLVLRQ† G  VSHFLILFDOO\UHIHUHQFHVmSURSHUO\ILOHG FRQVWLWXWLRQDO ULJKW DQG  ZKHWKHU WKH GLVWULFW FRXUW ZDV FRUUHFW LQ LWV DSSOLFDWLRQ>V@ IRU 6WDWH SRVWFRQYLFWLRQ RU RWKHU FROODWHUDO SURFHGXUDO UXOLQJ 6ODFN Y 0F'DQLHO  86