Wall v. EPA
Wall v. EPA
Opinion
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 :DOOHWDOY(3$HWDO 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
WKH 6WDWH ZLOO LPSOHPHQW DOO PHDVXUHV ZLWK UHVSHFW WR WKH )LOH 1DPH DS
FRQWURORIWKHDLUSROOXWDQWFRQFHUQHGZKLFKZHUHFRQWDLQHG LQ WKH 6WDWH LPSOHPHQWDWLRQ SODQ IRU WKH DUHD EHIRUH UHGHVLJQDWLRQ RI WKH DUHD DV DQ DWWDLQPHQW DUHDl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jV 81,7(' 67$7(6 DFWLRQ LQ UHGHVLJQDWLQJ &LQFLQQDWL PHWURSROLWDQ DUHD WR (19,5210(17$/ DWWDLQPHQWVWDWXVIRUJURXQGOHYHOR]RQHDQG5(0$1'IRU 3527(&7,21 $*(1&<DQG IXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ &+5,67,1( :+,70$1 $GPLQLVWUDWRU8QLWHG6WDWHV (QYLURQPHQWDO3URWHFWLRQ $JHQF\ 5HVSRQGHQWV 1 2Q3HWLWLRQIRU5HYLHZRID)LQDO'HFLVLRQRI WKH(QYLURQPHQWDO3URWHFWLRQ$JHQF\ 1R&)53DUWV $UJXHG $XJXVW 'HFLGHGDQG)LOHG 6HSWHPEHU
:DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
%HIRUH &/$<DQG*,/0$1&LUFXLWsXGJHV :,6(0$1 SRLQWLQJ RXW WKDW HPLVVLRQV UHGXFWLRQV IURP 5$&7 'LVWULFWsXGJH PHDVXUHV DUH QRW SUHVHQWO\ QHHGHG IRU DWWDLQPHQW DQG PDLQWHQDQFH LQ &LQFLQQDWL XSRQ UHGHVLJQDWLRQ 2KLR BBBBBBBBBBBBBBBBB FRXOGKDOWWKHLPSOHPHQWDWLRQRIHYHQIXOO\DSSURYHG5$&7 PHDVXUHV DQG PRYH WKHP LQWR WKH FRQWLQJHQF\ SODQV DQG &2816(/ WKHUHVXOWRILWVDFWLRQKHUHLVQRWPXFKGLIIHUHQWWKDQKDG LWUHTXLUHGWKHVWDWHWRFRPSO\ZLWKWKH5$&7UHTXLUHPHQW $5*8(' 'DYLG 6 %DURQ ($57+s867,&( /(*$/ EHIRUHUHGHVLJQDWLRQ '()(16( )81' :DVKLQJWRQ '& IRU 3HWLWLRQHUV DQG ,QWHUYHQRU0HODLQH$XUHLOLD:LOOLDPV81,7('67$7(6 7KHVH DUJXPHQWV DUH LQ DGGLWLRQ WR WKRVH IRUPDOO\ '(3$570(17 2) s867,&( (19,5210(17$/ SURPXOJDWHGE\WKH(3$LQWKH)HGHUDO5HJLVWHUWRMXVWLI\LWV '()(16(6(&7,21:DVKLQJWRQ'&IRU5HVSRQGHQWV GHSDUWXUHIURPWKHVWDQGDUGSROLF\UHTXLUHPHQWVUHJDUGLQJWKH 21 %5,() 'DYLG 6 %DURQ ($57+s867,&( /(*$/ FHUWLILFDWLRQRIDWWDLQPHQW VHHSDJHDERYHFLWLQJ)HG '()(16( )81' :DVKLQJWRQ '& IRU 3HWLWLRQHUV DQG 5HJDW $OWKRXJKDOORIWKHVHMXVWLILFDWLRQVFRXOGZHOO ,QWHUYHQRU0HODLQH$XUHLOLD:LOOLDPV81,7('67$7(6 VXSSRUWLWVSRVLWLRQLIWKHVWDWXWHRQLPSOHPHQWDWLRQRIWKH '(3$570(17 2) s867,&( (19,5210(17$/ 5$&7PHDVXUHVZHUHDPELJXRXVWKH\GRQRWDOORZWKH(3$ '()(16(6(&7,21:DVKLQJWRQ'&.HQGUD+6DJRII WR WDNH D SRVLWLRQ WKDW FRQIOLFWV ZLWK WKH FOHDU LQWHQWLRQ RI (19,5210(17$/3527(&7,21$*(1&<2)),&(2) &RQJUHVV WR UHTXLUH DFWXDO SURYLVLRQV UDWKHU WKDQ RSWLRQDO *(1(5$/&2816(/:DVKLQJWRQ'&IRU5HVSRQGHQWV FRQWLQJHQF\PHDVXUHV6HH&KHYURQ86$,QFY1DWXUDO %U\DQ)=LPD2)),&(2)7+($77251(<*(1(5$/ 5HV'HI&RXQFLO,QF86Q m,ID &ROXPEXV2KLRIRU$PLFXV&XULDH FRXUWHPSOR\LQJWUDGLWLRQDOWRROVRIVWDWXWRU\FRQVWUXFWLRQ DVFHUWDLQV WKDW &RQJUHVV KDG DQ LQWHQWLRQ RQ WKH SUHFLVH BBBBBBBBBBBBBBBBB TXHVWLRQDWLVVXHWKDWLQWHQWLRQLVWKHODZDQGPXVWEHJLYHQ HIIHFWl 23,1,21 BBBBBBBBBBBBBBBBB )LQDOO\WKH(3$DUJXHVWKDW&$$$ G SURYLGHVLW ZLWKWKHDXWKRULW\WRSODFHWKH5$&7PHDVXUHVRQDOLVWRI 521$/' /(( *,/0$1 &LUFXLW sXGJH 7KLV DSSHDO FRQWLQJHQF\PHDVXUHVLQVWHDGRIUHTXLULQJWKHLUDGRSWLRQLQD LQYROYHVWKHUHYLHZRIDILQDOGHFLVLRQE\WKH8QLWHG6WDWHV VXEPLWWHG6,37KLVVHFWLRQUHTXLUHVWKDWPDLQWHQDQFHSODQV (QYLURQPHQWDO 3URWHFWLRQ $JHQF\ (3$ UHGHVLJQDWLQJ WKH VXEPLWWHG IRU UHGHVLJQDWLRQ SXUSRVHV PXVW mFRQWDLQ VXFK VWDWXV RI WKH &LQFLQQDWL PHWURSROLWDQ DUHD IURP FRQWLQJHQF\SURYLVLRQVDVWKH$GPLQLVWUDWRUGHHPVQHFHVVDU\ mQRQDWWDLQPHQWlWRmDWWDLQPHQWlIRUJURXQGOHYHOR]RQHDQG WRDVVXUHWKDWWKH6WDWHZLOOSURPSWO\FRUUHFWDQ\YLRODWLRQRI DSSURYLQJDFOHDQDLUPDLQWHQDQFHSODQIRUWKHDUHD0DULO\Q WKH VWDQGDUG >R]RQH 1$$46@ ZKLFK RFFXUV DIWHU WKH :DOO DQG 0LNH )UHPRQW UHVLGHQWV RI 2KLR ILOHG VXLW WR UHGHVLJQDWLRQRIWKHDUHDDVDQDWWDLQPHQWDUHDl,G UHTXHVWWKDWWKLVFRXUWYDFDWHWKH(3$jVGHFLVLRQ7KH6LHUUD &OXEDQRUJDQL]DWLRQZLWKPHPEHUVOLYLQJLQWKH2KLR %XW&$$$GRHVQRWSURYLGHWKHDXWKRULW\IRUDVWDWH DUHD LQWHUYHQHG LQ VXSSRUW RI :DOO DQG )UHPRQW )RU WKH WR DYRLG WKH DGRSWLRQ RI 5$&7 FRQWURO PHDVXUHV VLPSO\ EHFDXVH LW LQFRUSRUDWHV WKHP DV RSWLRQDO FRQWLQJHQF\ SURYLVLRQVLQLWVPDLQWHQDQFHSODQ&$$$ G LQIDFW
7KH +RQRUDEOH 7KRPDV $ :LVHPDQ sU 8QLWHG 6WDWHV 'LVWULFW IXUWKHUVWDWHVWKDWWKHVHPHDVXUHVPXVWmLQFOXGHDUHTXLUHPHQW sXGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
JLYHQ WKDW 2KLRjV FRQWLQJHQF\ SODQ LQFOXGHV WKH 5$&7 UHDVRQVVHWIRUWKEHORZZH9$&$7(WKH(3$jVDFWLRQLQ PHDVXUHVDPRQJHOHYHQRWKHUmFRQWLQJHQF\PHDVXUHVWREH UHGHVLJQDWLQJWKH&LQFLQQDWLPHWURSROLWDQDUHDWRDWWDLQPHQW FRQVLGHUHG IRU LPSOHPHQWDWLRQ IRU WKH 2KLR SRUWLRQ RI WKH VWDWXV IRU JURXQGOHYHO R]RQH DQG 5(0$1' IRU IXUWKHU &LQFLQQDWL+DPLOWRQDUHDl)HG5HJDW HPSKDVLV SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ DGGHG 6R HYHQ LI WKH FRQWLQJHQF\ PHDVXUHV EHFRPH WULJJHUHGWKHUHDSSHDUVWREHQRUHTXLUHPHQWWKDWWKH5$&7 ,%$&.*5281' PHDVXUHV EH DPRQJ WKRVH DFWXDOO\ DGRSWHG 6HH LG 7KH DYDLODELOLW\RI5$&7UXOHVLQ2KLRjVFRQWLQJHQF\SURYLVLRQV $ )DFWXDOEDFNJURXQG WKHUHIRUH GRHV QRW VDWLVI\ WKH SODLQ ODQJXDJH RI &$$ E *URXQGOHYHO R]RQH LV D SULQFLSDO FRPSRQHQW RI XUEDQ VPRJ 6HH +5 5HS 1R DW $V D $GGLWLRQDO VWDWXWRU\ DQG DJHQF\ JXLGDQFH ODQJXDJH DOVR KLJKO\ UHDFWLYH FKHPLFDO R]RQH FDQ FUHDWH VHYHUH KHDOWK FRQWUDGLFWV WKH (3$jV DVVHUWLRQ WKDW LW FDQ VXEVWLWXWH SUREOHPVVXFKDVmFKHVWSDLQVVKRUWQHVVRIEUHDWKFRXJKLQJ FRQWLQJHQF\ SURYLVLRQV IRU DFWXDO DGRSWLRQ RI WKH 5$&7 QDXVHD WKURDW LUULWDWLRQ DQG LQFUHDVHG VXVFHSWLELOLW\ WR UXOHV &$$ E IRU LQVWDQFH UHTXLUHV WKDW SODQ UHVSLUDWRU\LQIHFWLRQVlHYHQZKHQLQKDOHGE\KHDOWK\DGXOWV SURYLVLRQVmVKDOOEHVXEPLWWHGZLWKLQWKHSHULRGVHWIRUWKE\ ,GDW ,WLVDOVRH[WUHPHO\FRUURVLYHFDXVLQJPHWDOVWR WKH$GPLQLVWUDWRULQLVVXLQJWKHUHOHYDQW&7*GRFXPHQWl,Q UXVWDQGSDLQWVWRFUDFNDQGIDGH6HHLG WXUQ HDFK &7* GRFXPHQW VHWV H[SUHVV WLPHOLQHV E\ ZKLFK VWDWHVPXVWLPSOHPHQWYDULRXV5$&7UXOHV6HHHJ&RQWURO 3ROOXWLRQVRXUFHVGRQRWHPLWR]RQHGLUHFWO\,QVWHDGLWV 7HFKQLTXHV *XLGHOLQHV 'RFXPHQW $GGHQGXP WR &RQWURO SUHFXUVRUV n QLWURJHQ R[LGHV 12[ DQG YRODWLOH RUJDQLF 7HFKQLTXHV *XLGHOLQHV 'RFXPHQW 5HDFWRU 3URFHVVHV DQG FRPSRXQGV 92&V nUHDFWWRIRUPR]RQHLQWKHSUHVHQFHRI 'LVWLOODWLRQ2SHUDWLRQV3URFHVVHV )HG5HJ 0DU VXQOLJKW 6HH LG DW 7KHVH SUHFXUVRUV LQ WXUQ DUH m$Q\6WDWHZKLFKKDVQRWDGRSWHGDQDSSURYDEOH HPLWWHGE\VRXUFHVVXFKDVPRWRUYHKLFOHVSRZHUSODQWVDQG 5$&7UXOHIRUWKHVRXUFHVFRYHUHGE\WKLV&7*PXVWVXEPLW LQGXVWULDOIDFWRULHV%HFDXVHR]RQHLVRIWHQIRUPHGLQODUJH D 5$&7 UXOH IRU WKHVH VRXUFHV EHIRUH 0DUFK l VWDJQDQWDLUPDVVHVWKDWGULIWIURPRQHUHJLRQWRDQRWKHUDLU 0RUHRYHU D (3$ JXLGDQFH PHPRUDQGXP VWDWHV WKDW TXDOLW\PRGHOVDUHXVHGWRIRUHFDVWWKHR]RQHOHYHOVWKDWPLJKW mIXOODGRSWLRQRIDOORIWKHVWDWXWRULO\UHTXLUHGSURJUDPVDV UHVXOWIURPDSDUWLFXODUFRPELQDWLRQRISUHFXUVRUVRXUFHV6HH ZHOODVDVFKHGXOHDQGDQHQIRUFHPHQWFRPPLWPHQWIRUDQ 2KLRY(3$)G WK&LU LPSOHPHQWDWLRQ GDWH DUH QHFHVVDU\ IRU UHGHVLJQDWLRQ WR DWWDLQPHQW IURP QRQDWWDLQPHQW IRU R]RQH RU &2 LI WKH % 6WDWXWRU\DQGUHJXODWRU\EDFNJURXQG UHGHVLJQDWLRQUHTXHVWLVVXEPLWWHGDIWHUWKHVWDWXWRU\GXHGDWH 1DWLRQDODPELHQWDLUTXDOLW\VWDQGDUGV RIWKHSURJUDPl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mDWWDLQPHQWlmQRQDWWDLQPHQWlRU mXQFODVVLILDEOHl GHSHQGLQJ RQ ZKHWKHU WKH DUHD PHHWV WKH :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
1$$46IRUDSDUWLFXODUSROOXWDQW6HH&$$ G DVDQRSWLRQDOPHDVXUHLQDFRQWLQJHQF\SODQLVQRVXEVWLWXWH 86& G 0RUH VWULQJHQW DLU SROOXWLRQ FRQWURO IRUDFWXDODGRSWLRQ:HDJUHH UHTXLUHPHQWVDSSO\WRQRQDWWDLQPHQWDUHDVWKDQWRDWWDLQPHQW DUHDV 6HH &$$ 86& 7KH DSSOLFDELOLW\ RI WKH WUDQVSRUWDWLRQFRQIRUPLW\ 1RQDWWDLQPHQW DUHDV IRU R]RQH DUH IXUWKHU FODVVLILHG DV UHTXLUHPHQWVGLVFXVVHGLQ3DUW,,&DERYHLVLQGLVSXWHDQG mPDUJLQDOlmPRGHUDWHlmVHULRXVlmVHYHUHlRUmH[WUHPHl WKHVWDWXWHLVDPELJXRXVRQWKHLUDSSOLFDELOLW\WRUHGHVLJQDWLRQ GHSHQGLQJ RQ WKH VHYHULW\ DQG SHUVLVWHQFH RI WKH R]RQH UHTXHVWV,QFRQWUDVWWKHDSSOLFDELOLW\RIWKH5$&7UXOHVWR SUREOHP6HH&$$ D E 86& D UHGHVLJQDWLRQ UHTXHVWV LV QRW LQ GLVSXWH ,QGHHG LQ WKH E DJHQF\jVLQLWLDOUHGHVLJQDWLRQHYDOXDWLRQWKH(3$DJUHHGWKDW LWVRZQSROLF\mZRXOGUHTXLUHIXOODGRSWLRQVXEPLVVLRQDQG 5HVSRQVLELOLW\ IRU PHHWLQJ WKH 1$$46 UHVWV ZLWK WKH DSSURYDO RI >FHUWDLQ 5$&7 UXOHV@ SULRU WR DSSURYDO RI WKH VWDWHV 8QGHU WKH &$$ HDFK VWDWH PXVW GUDIW D 6WDWH UHGHVLJQDWLRQUHTXHVWl)HG5HJDW,WIXUWKHUVWDWHG ,PSOHPHQWDWLRQ 3ODQ 6,3 FRQWDLQLQJ VSHFLILF SROOXWLRQ WKDW mWKH UHTXLUHPHQW IRU WKHVH 5$&7 UXOHV UHPDLQV DQ FRQWURO PHDVXUHV IRU HDFK SROOXWDQW 6HH &$$ DSSOLFDEOH UHTXLUHPHQW IRU SXUSRVHV RI HYDOXDWLQJ WKH 86& 7KH &$$ VSHFLILHV GLIIHUHQW GHDGOLQHV E\ UHGHVLJQDWLRQUHTXHVWVLQFHLWSUHGDWHGWKHVXEPLVVLRQRIWKH ZKLFKPDUJLQDOPRGHUDWHVHULRXVVHYHUHDQGH[WUHPHR]RQH UHTXHVWl,G HPSKDVLVDGGHG QRQDWWDLQPHQWDUHDVPXVWDWWDLQWKH1$$46DVZHOODVWKH SURJUDPVWKDWHDFKVWDWHPXVWDGRSWLQLWV6,3WRDFKLHYHVXFK 0RUHRYHU WKH VWDWXWRU\ ODQJXDJH UHJDUGLQJ WKH DWWDLQPHQW6HH&$$86& LPSOHPHQWDWLRQ RI 5$&7 UXOHV LV QRW DPELJXRXV 7KH $UHDVZLWKPRUHVHYHUHFODVVLILFDWLRQVDUHJLYHQPRUHWLPHWR UHOHYDQW ODQJXDJH SURYLGHV DV IROORZV m7KH 6WDWH VKDOO UHDFK DWWDLQPHQW EXW DUH UHTXLUHG WR LPSOHPHQW PRUH VXEPLWDUHYLVLRQWRWKHDSSOLFDEOHLPSOHPHQWDWLRQSODQWR VWULQJHQWFRQWUROPHDVXUHV6HH&$$ D LQFOXGH SURYLVLRQV WR UHTXLUH WKH LPSOHPHQWDWLRQ RI 86&D UHDVRQDEO\DYDLODEOHFRQWUROWHFKQRORJ\l&$$ E %\WKLVODQJXDJHLWLVFOHDUWKDW&RQJUHVVLQWHQGHGIRU6,3V 7KH (3$ PXVW UHYLHZ HDFK VXEPLWWHG 6,3 DQG HLWKHU VXEPLWWHGLQUHGHVLJQDWLRQUHTXHVWVWRLQFOXGHmSURYLVLRQVWR DSSURYH RU GLVDSSURYH WKH SODQ ZLWKLQ RQH \HDU DIWHU WKH UHTXLUHWKHLPSOHPHQWDWLRQRIl5$&7PHDVXUHV DJHQF\ KDV GHWHUPLQHG WKDW WKH VWDWH FRPSOHWHG LWV 6,3 VXEPLVVLRQ6HH&$$ N ,IWKH(3$DSSURYHVWKH 7KH(3$KRZHYHUFODLPVWKDWWKHVWDWXWHGRHVQRWVSHDN 6,3HLWKHULQZKROHRULQSDUWWKHQWKHDSSURYHGSURYLVLRQV WRZKDWFRQVWLWXWHVDQDFFHSWDEOHmSURYLVLRQl$FFRUGLQJO\ EHFRPH IHGHUDOO\ HQIRUFHDEOH 6HH &$$ WKHDJHQF\FRQWHQGVWKDWZHPXVWGHIHUWRLWVLQWHUSUHWDWLRQRI 86&%XWLIWKH6,3LVGLVDSSURYHGWKHQWKH WKHVWDWXWHDVDOORZLQJ5$&7UXOHVWREHLQFRUSRUDWHGZLWKLQ VWDWHEHFRPHVVXEMHFWWRVDQFWLRQVVHH&$$ 86& DVWDWHjVFRQWLQJHQF\SURYLVLRQVUDWKHUWKDQUHTXLULQJWKHPWR DVZHOODVWRIHGHUDOO\LPSRVHGFOHDQDLUPHDVXUHV EHDFWXDOO\DGRSWHGDQGLPSOHPHQWHG 6HH&$$ F $ FRQWLQJHQF\ SURYLVLRQ KRZHYHU LV QRW LPPHGLDWHO\ HIIHFWLYH 6HH %ODFNjV /DZ 'LFWLRQDU\ WK HG GHILQLQJDFRQWLQJHQF\DVDPRQJRWKHUWKLQJVm>D@QHYHQW WKDWPD\RUPD\QRWRFFXU DSRVVLELOLW\lDQGm>W@KHFRQGLWLRQ RI EHLQJ GHSHQGHQW RQ FKDQFH XQFHUWDLQW\l ,QGHHG WKH 5$&7 UXOHV DV XWLOL]HG LQ 2KLR DUH RQH DGGLWLRQDO VWHS UHPRYHGIURPHYHQEHLQJUHTXLUHGDVFRQWLQJHQF\PHDVXUHV :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
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mGHILQHOHYHOVRIDLUTXDOLW\ZKLFK WKH $GPLQLVWUDWRU MXGJHV DUH QHFHVVDU\ ZLWK DQ DGHTXDWH $VWKH6XSUHPH&RXUWREVHUYHGLQ5XVWY6XOOLYDQ PDUJLQ RI VDIHW\ WR SURWHFW WKH SXEOLF KHDOWKl DQG 86 mDUHYLVHGLQWHUSUHWDWLRQGHVHUYHV QDWLRQDOVHFRQGDU\DPELHQWDLUTXDOLW\VWDQGDUGVZKLFK GHIHUHQFH EHFDXVH DQ LQLWLDO DJHQF\ LQWHUSUHWDWLRQ LV QRW mGHILQHOHYHOVRIDLUTXDOLW\ZKLFKWKH$GPLQLVWUDWRUMXGJHV LQVWDQWO\ FDUYHG LQ VWRQH DQG WKH DJHQF\ WR HQJDJH LQ QHFHVVDU\WRSURWHFWWKHSXEOLFZHOIDUHIURPDQ\NQRZQRU LQIRUPHGUXOHPDNLQJPXVWFRQVLGHUYDU\LQJLQWHUSUHWDWLRQV DQWLFLSDWHG DGYHUVH HIIHFWV RI D SROOXWDQWl &)5 SW DQG WKH ZLVGRP RI LWV SROLF\ RQ D FRQWLQXLQJ EDVLVl E %UDFNHWV DQG TXRWDWLRQ PDUNV RPLWWHG 0RUHRYHU WKH LQWHUSUHWDWLRQSXWIRUWKLQWKH )ORULGDUXOHPDNLQJGRHV 6HFWLRQ D RIWKHUHJXODWLRQVVHWVWKHSULPDU\VWDQGDUG QRW FRQIOLFW ZLWK WKH VWDWXWH DQG LQVWHDG mLV D VXIILFLHQWO\ IRUR]RQHDWDFRQFHQWUDWLRQRISDUWVSHUPLOOLRQ8QGHU UDWLRQDORQHWRSUHFOXGHDFRXUWIURPVXEVWLWXWLQJLWVMXGJPHQW WKLV VHFWLRQ WKH R]RQH mVWDQGDUG LV DWWDLQHG ZKHQ WKH IRUWKDWRI(3$l &KHP0IUV$VVjQY1DWXUDO5HV'HI H[SHFWHGQXPEHURIGD\VSHUFDOHQGDU\HDUZLWKPD[LPXP &RXQFLO ,QF 86 :H DFFRUGLQJO\ KRXUO\ DYHUDJH R]RQH FRQFHQWUDWLRQV DERYH SDUWV SHU GHIHUWRWKH(3$jVGHWHUPLQDWLRQWKDW.HQWXFN\jVIDLOXUHWR PLOOLRQ LV HTXDO WR RU OHVV WKDQ DV GHWHUPLQHG E\ VXEPLW D UHYLVLRQ WR LWV 6,3 WKDW PHHWV WKH 3DUW ' DSSHQGL[+l&)5SW D $SSHQGL[+LQWXUQ WUDQVSRUWDWLRQFRQIRUPLW\UHTXLUHPHQWVLVQRWDEDVLVWRGHQ\ H[SODLQVWKHPHWKRGRORJ\E\ZKLFKH[SHULPHQWDOUHVXOWVDUH WKH GHVLJQDWLRQ RI WKH &LQFLQQDWL PHWURSROLWDQ DUHD WR FRQYHUWHGLQWRWKHH[SHFWHGQXPEHURIGD\VWKDWWKHR]RQH DWWDLQPHQWVWDWXV VWDQGDUGZRXOGEHH[FHHGHG6HH&)5SWDSS+ %HFDXVH WKH PHWKRGRORJ\ LQYROYHV DYHUDJLQJ D UHJLRQjV ' $GRSWLRQ RI WKH UHDVRQDEO\ DYDLODEOH WHFKQRORJ\ UHVXOWVRYHUDWKUHH\HDUSHULRGIRUHDFKPRQLWRULQJVLWHLQWKH 5$&7 UXOHV UHJLRQDQDUHDZLOODWWDLQWKH1$$46RQO\LIRYHUWKHWKUHH \HDUSHULRGHDFKRILWVPRQLWRULQJVLWHVUHFRUGWKUHHRUIHZHU 7KHSHWLWLRQHUjVILQDOFKDOOHQJHLVWRWKH(3$jVDXWKRULW\WR WLPHVGXULQJZKLFKWKHR]RQHFRQFHQWUDWLRQKDVH[FHHGHGWKH JUDQW.HQWXFN\jVDQG2KLRj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
D $ F E 7KH6,3PXVWDOVR 7KH(3$jVLQWHUSUHWDWLRQLQOLHXRIRWKHUJXLGDQFHRQWKLV LQFOXGH SURYLVLRQV IRU WKH HQIRUFHPHQW RI WKH PHDVXUHV PDWWHULVQRWXQUHDVRQDEOH$OWKRXJKmDSSOLFDEOHl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jVRZQ LQFOXGHWKHIROORZLQJVSHFLILFPHDVXUHV SROOXWLRQOLPLWV *HQHUDO 3UHDPEOH IRU WKH ,PSOHPHQWDWLRQ RI 7LWOH , RI WKH WKDW UHIOHFW WKH mUHDVRQDEO\ DYDLODEOH FRQWURO WHFKQRORJ\l &$$$PHQGPHQWVRI ,QWKLVJHQHUDOSUHDPEOHWKH 5$&7 IRU H[LVWLQJ IDFWRULHV WKDW HPLW 92&V VHH &$$ (3$VWDWHGWKDWDVDSUHUHTXLVLWHWRGHVLJQDWLRQm>W@KH6WDWH F E DQG SURFHGXUHV WR HQVXUH WKDW PXVWVKRZWKDWWKHVHFWLRQUHTXLUHPHQWVRIFRQIRUPLW\ VWDWHDQGORFDOWUDQVSRUWDWLRQSODQVDQGSURMHFWVFRQIRUPWR KDYHEHHQPHWlDQGWKDWWKHm6,3FRQIRUPLW\SURYLVLRQVPXVW WKH FOHDQ DLU SODQV 6HH &$$ F $ 86& EH FRQVLVWHQW ZLWK (3$ JXLGDQFHl )HG 5HJ F $ $SU 5HTXLUHPHQWVIRUWKHUHGHVLJQDWLRQRIDQDUHDIURP 7KHSHWLWLRQHUVDOVRFLWHWKH(3$jV&DOFDJQL0HPRUDQGXP QRQDWWDLQPHQWWRDWWDLQPHQW ZKLFK SURYLGHV m,I WKH 6WDWH VXEPLWV WKH UHGHVLJQDWLRQ UHTXHVW VXEVHTXHQW WR (3$jV LVVXDQFH RI WKH FRQIRUPLW\ $VWDWHPD\UHTXHVWWKH(3$WRUHGHVLJQDWHDQDUHDIURP UHJXODWLRQV DQG WKH FRQIRUPLW\ UHTXLUHPHQW EHFDPH QRQDWWDLQPHQWWRDWWDLQPHQWVWDWXVLIWKDWDUHDKDVLPSURYHG DSSOLFDEOH WR WKH DUHD SULRU WR VXEPLVVLRQ WKH 6WDWH PXVW LQDLUTXDOLW\6HH&$$ G ' $IWHUDQDUHDLVVR DGRSWWKHDSSOLFDEOHFRQIRUPLW\UHTXLUHPHQWVEHIRUH(3$FDQ UHGHVLJQDWHG LW QR ORQJHU QHHG FRPSO\ ZLWK WKH PRUH UHGHVLJQDWHWKHDUHDl,GDW7KLVODQJXDJHWKH\DUJXH VWULQJHQW DLU SROOXWLRQ PHDVXUHV WKDW DSSO\ RQO\ WR LQGLFDWHV WKDW WKH DJHQF\ LWVHOI KDV LQWHUSUHWHG WKH QRQDWWDLQPHQWDUHDV&I&$$ D , UHTXLULQJ6,3V WUDQVSRUWDWLRQFRQIRUPLW\ UHJXODWLRQV DV DSSO\LQJ WR IRUQRQDWWDLQPHQWDUHDVWRPHHWWKHmDSSOLFDEOHUHTXLUHPHQWV UHGHVLJQDWLRQUHTXHVWV RISDUW'RIWKLVVXEFKDSWHUl 7KHUHVSRQVLELOLW\LQVWHDGLV RQWKHVWDWHWRDSSO\WKHHQIRUFHPHQWSURYLVLRQVFRQWDLQHGLQ %XW GXULQJ D ODWHU UXOHPDNLQJ SURFHHGLQJ WKDW FRPSOLHG LWV PDLQWHQDQFH SODQ 6HH &$$ $ G 86& ZLWKDOOQRWLFHDQGFRPPHQWUHTXLUHPHQWVWKH(3$LQIRUPHG D G UHTXLULQJPDLQWHQDQFHSODQVWKDWDUHVXEPLWWHG WKH SXEOLF WKDW LW ZDV UHYHUVLQJ LWV HDUOLHU LQWHUSUHWDWLRQ ZLWK UHGHVLJQDWLRQ UHTXHVWV WR LQFOXGH mVXFK FRQWLQJHQF\ UHJDUGLQJ WKH DSSOLFDELOLW\ RI WUDQVSRUWDWLRQFRQIRUPLW\ SURYLVLRQV DV WKH $GPLQLVWUDWRU GHHPV QHFHVVDU\ WR DVVXUH UHTXLUHPHQWVWRUHGHVLJQDWLRQUHTXHVWVVXFKWKDWWKH\ZRXOG WKDW WKH 6WDWH ZLOO SURPSWO\ FRUUHFW DQ\ YLRODWLRQ RI WKH QR ORQJHU EH GHHPHG DSSOLFDEOH 6HH $SSURYDO DQG VWDQGDUGZKLFKRFFXUVDIWHUWKHUHGHVLJQDWLRQRIWKHDUHDDVDQ 3URPXOJDWLRQ RI ,PSOHPHQWDWLRQ 3ODQV DQG 'HVLJQDWLRQ RI DWWDLQPHQWDUHDl $UHDV IRU $LU 4XDOLW\ 3ODQQLQJ 3XUSRVHV 6WDWH RI )ORULGD &KDQJH LQ 1DWLRQDO 3ROLF\ 5HJDUGLQJ $SSOLFDELOLW\ RI )LYH FULWHULD PXVW EH PHW IRU DQ DUHD WR EH UHGHVLJQDWHG &RQIRUPLW\5HTXLUHPHQWVWR5HGHVLJQDWLRQ5HTXHVWV)HG IURPQRQDWWDLQPHQWWRDWWDLQPHQWVWDWXV 5HJ 'HF ,QGRLQJVRWKH(3$VHW IRUWKWKHVDPHWZRUDWLRQDOHVWKDWLWJLYHVLQWKHFDVHEHIRUH XV)XUWKHUPRUHDIWHULWV UXOHPDNLQJSURFHHGLQJWKH :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
WUDQVSRUWDWLRQFRQIRUPLW\ UHTXLUHPHQWV DUH LQDSSOLFDEOH WR 7KH$GPLQLVWUDWRUPD\QRWSURPXOJDWHDUHGHVLJQDWLRQ UHTXHVWVIRUUHGHVLJQDWLRQ RIDQRQDWWDLQPHQWDUHD RUSRUWLRQWKHUHRI WRDWWDLQPHQW XQOHVVn ,Q&$$ G ( &RQJUHVVVHWIRUWKWKHILYHFULWHULD L WKH$GPLQLVWUDWRUGHWHUPLQHVWKDWWKHDUHDKDVDWWDLQHG WKDW PXVW EH PHW IRU DQ DUHD WR EH UHGHVLJQDWHG IURP WKHQDWLRQDODPELHQWDLUTXDOLW\VWDQGDUG QRQDWWDLQPHQW WR DWWDLQPHQW VWDWXV 6SHFLILFDOO\ LL WKH$GPLQLVWUDWRUKDVIXOO\DSSURYHGWKHDSSOLFDEOH G ( Y VWDWHVWKDWWKH(3$PXVWGHWHUPLQHWKDWmWKH LPSOHPHQWDWLRQSODQIRUWKHDUHDXQGHUVHFWLRQ N 6WDWH FRQWDLQLQJ VXFK DUHD KDV PHW DOO UHTXLUHPHQWV RIWKLVWLWOH DSSOLFDEOHWRWKHDUHDXQGHUVHFWLRQRIWKLVWLWOHDQGSDUW LLL WKH$GPLQLVWUDWRUGHWHUPLQHVWKDWWKHLPSURYHPHQW ' RI WKLV VXEFKDSWHUl (PSKDVLV DGGHG 7KH VWDWXWH LQ DLU TXDOLW\ LV GXH WR SHUPDQHQW DQG HQIRUFHDEOH KRZHYHUGRHVQRWGHVFULEHKRZWKH(3$LVWRGHFLGHZKLFK UHGXFWLRQVLQHPLVVLRQVUHVXOWLQJIURPLPSOHPHQWDWLRQRI 3DUW ' UHTXLUHPHQWV DUH mDSSOLFDEOHl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mWKHLQIRUPDWLRQQHFHVVDU\ WUDQVSRUWDWLRQ FRQIRUPLW\ DQDO\VHV HYHQ LQ WKH DEVHQFH RI WR HQDEOH WKH $GPLQLVWUDWRU WR GHWHUPLQH ZKHWKHU WKH SODQ IHGHUDOO\DSSURYHGVWDWHUXOHV6HH F SURYLGLQJWKDW VXEPLVVLRQ FRPSOLHV ZLWK WKH SURYLVLRQV RI WKLV FKDSWHUl WUDQVSRUWDWLRQFRQIRUPLW\PXVWEHGHPRQVWUDWHGm>X@QWLOVXFK &$$ N $ $FRPSOHWHG6,3VXEPLVVLRQLQ WLPHDVWKHLPSOHPHQWDWLRQSODQUHYLVLRQLVDSSURYHGl :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
WXUQFDQRQO\EHDSSURYHGLILWmPHHWVDOORIWKHDSSOLFDEOH FRPPLWPHQWVUDWKHUWKDQmDVVXP>LQJ@WKDWWKHSODQFRQWDLQV UHTXLUHPHQWVRIWKLVFKDSWHUl&$$ N DGHTXDWHHQIRUFHPHQWDQGUHVRXUFHFRPPLWPHQWVEDVHGRQ LQIHUHQFHVDERXWSODQVIURPGHFDGHVDJRl 6XEVHFWLRQ D RI VHWV IRUWK WKH JHQHUDO UHTXLUHPHQWVIRUD6,3$FFRUGLQJWRWKLVVXEVHFWLRQD6,3 :H DJUHH WKDW D PRUH FRQWHPSRUDU\ FRPPLWPHQW RI PXVW LQFOXGH mHQIRUFHDEOH HPLVVLRQ OLPLWDWLRQV DQG RWKHU UHVRXUFHVDQGDXWKRULW\ZRXOGDOORZWKHVWDWHVWRWDLORUWKHLU FRQWURO PHDVXUHV PHDQV RU WHFKQLTXHVl &$$ FRPPLWPHQWV VSHFLILFDOO\ WR WKH SODQV IRU ZKLFK (3$ D $ SURYLVLRQV IRU WKH mHVWDEOLVKPHQW DQG DSSURYDOLVVRXJKW%XWWKHUHLVQRODQJXDJHLQWKH&$$RULQ RSHUDWLRQRIDSSURSULDWHGHYLFHVlQHFHVVDU\WRFROOHFWGDWDRQ WKH(3$jVUHJXODWLRQVWKDWVSHFLILFDOO\UHTXLUHVWKDWDVHSDUDWH DPELHQW DLU TXDOLW\ &$$ D % DQG SURJUDPV WR FRPPLWPHQW EH PDGH ZLWKLQ WKH PDLQWHQDQFH SODQV HQIRUFHWKHOLPLWDWLRQV6HH&$$ D & WKHPVHOYHV 7KXV WKH (3$ SHUPLVVLEO\ GHWHUPLQHG WKDW .HQWXFN\DQG2KLRIXOILOOHGWKHUHTXLUHPHQWRIVXEPLWWLQJmD &$$ 6HFWLRQ $ JHQHUDO PDLQWHQDQFH SURJUDPWRSURYLGHIRUWKHHQIRUFHPHQWRIWKH>PDLQWHQDQFH@ UHTXLUHPHQWV PHDVXUHVl ZKHQ VXFK PHDVXUHV ZHUH DOUHDG\ DSSURYHG LQ WKHLUHDUOLHU6,3V0RUHRYHUWKLVGHFLVLRQLVLQDFFRUGZLWK $ mPDLQWHQDQFH SODQl LV UHTXLUHG E\ &$$ WKH LQWHUSUHWDWLRQ JLYHQ WR WKH &$$ XQGHU WKH &DOFDJQL G ( LY DVDFRPSRQHQWRIDVWDWHjVUHGHVLJQDWLRQ 0HPRUDQGXP DGYLVLQJ WKDW mDQ (3$ DFWLRQ RQ D UHTXHVW6XFKDSODQPXVWmSURYLGHIRUWKHPDLQWHQDQFHRI UHGHVLJQDWLRQUHTXHVWGRHVQRWPHDQWKDWHDUOLHULVVXHVZLWK WKH >1$$46@ IRU DW OHDVW \HDUV DIWHU WKH UHJDUGWRWKH6,3ZLOOEHUHRSHQHGlLGDWDQLQWHUSUHWDWLRQ UHGHVLJQDWLRQl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jV ZLOOEHPDGHmLQOLJKWRIWKHSDUWLFXODUFLUFXPVWDQFHVIDFLQJ DSSURYDORIWKHFOHDQDLUPDLQWHQDQFHSODQVIRUWKH&LQFLQQDWL WKHDUHDSURSRVHGIRUUHGHVLJQDWLRQDQGEDVHGRQDOOUHOHYDQW PHWURSROLWDQDUHD LQIRUPDWLRQDYDLODEOHDWWKHWLPHl0HPRUDQGXPIURPsRKQ &DOFDJQL'LUHFWRU$LU4XDOLW\0DQDJHPHQW'LYLVLRQ(3$ & $SSOLFDELOLW\ RI WKH WUDQVSRUWDWLRQFRQIRUPLW\ 3URFHGXUHVIRU3URFHVVLQJ5HTXHVWVWR5HGHVLJQDWH$UHDVWR UHTXLUHPHQWV $WWDLQPHQW 6HSW &DOFDJQL0HPRUDQGXP 7KH(3$DFNQRZOHGJHVWKDW.HQWXFN\KDVIDLOHGWRVXEPLW 7KH PDLQWHQDQFH SODQ PXVW DOVR LQFOXGH HQIRUFHPHQW DUHYLVLRQRILWV6,3FRQWDLQLQJSURFHGXUHVWKDWPHHWDOORIWKH SURYLVLRQVmDVWKH$GPLQLVWUDWRUGHHPVQHFHVVDU\WRDVVXUH WUDQVSRUWDWLRQFRQIRUPLW\UHTXLUHPHQWVRI3DUW'6XESDUW WKDW WKH 6WDWH ZLOO SURPSWO\ FRUUHFW DQ\ YLRODWLRQ RI WKH RI WKH &$$ :KDW HIIHFW LI DQ\ WKLV IDLOXUH KDV RQ WKH VWDQGDUGZKLFKRFFXUVDIWHUWKHUHGHVLJQDWLRQRIWKHDUHDDVDQ UHGHVLJQDWLRQ UHTXHVWV LV WKH TXHVWLRQ EHIRUH XV 7KH DWWDLQPHQW DUHDl &$$ $ G ,Q SDUWLFXODU WKHVH SHWLWLRQHUVFRQWHQGWKDWXQWLO.HQWXFN\VXEPLWVDUHYLVLRQWKDW FRQWLQJHQF\SURYLVLRQVPXVWUHTXLUHWKHVWDWHWRLPSOHPHQWDOO PHHWVWKHVHWUDQVSRUWDWLRQFRQIRUPLW\UHTXLUHPHQWVWKH(3$ RIWKHR]RQHFRQWUROPHDVXUHVWKDWZHUHDOUHDG\LQWKH6,3 KDVQRDXWKRULW\WRUHGHVLJQDWHWKH&LQFLQQDWLPHWURSROLWDQ SULRUWRWKHWLPHWKDWWKHQRQDWWDLQPHQWDUHDLVUHGHVLJQDWHG DUHD WR DWWDLQPHQW VWDWXV %XW WKH (3$ DUJXHV WKDW WKH WRDWWDLQPHQW6HHLG :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
SURFHHGLQJDQGWKDWXVHGLQWKH7LHUSURFHHGLQJWKH(3$jV 3DUW ' UHTXLUHPHQWV VSHFLILFDOO\ SHUWDLQLQJ WR GHFLVLRQ WR WUHDW WKH 7LHU ILQGLQJV DV LQDSSOLFDEOH WR WKH QRQDWWDLQPHQWDUHDV SUHVHQWFDVHmLVDVXIILFLHQWO\UDWLRQDORQHWRSUHFOXGHDFRXUW IURPVXEVWLWXWLQJLWVMXGJPHQWIRUWKDWRI(3$l&KHP0IUV 3DUW ' RI 6XEFKDSWHU , RI WKH &$$ SURYLGHV VSHFLILF $VVjQY1DWXUDO5HV'HI&RXQFLO,QF86 UHTXLUHPHQWVWKDWDQRQDWWDLQPHQWDUHDPXVWPHHWLQRUGHUWR :HWKHUHIRUHXSKROGWKH(3$jVDSSURYDORIWKHWZR IXOILOO WKH ILIWK FULWHULRQ IRU UHGHVLJQDWLRQ 7KHUH DUH WZR VWDWHVj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m>L>QVRPHFDVHVWKHSROOXWDQWVSHFLILFUHTXLUHPHQWV EHFDXVHWKHVXEPLWWHGSODQVODFNHGWKHUHTXLUHGUHVRXUFHDQG FRQWDLQHG LQ VXESDUWV RI SDUW ' RYHUULGH VXESDUW jV DXWKRULW\FRPPLWPHQWVIRUHQIRUFHPHQW$FFRUGLQJWRWKHLU JHQHUDO SURYLVLRQVl 6WDWH ,PSOHPHQWDWLRQ 3ODQV *HQHUDO DUJXPHQW &$$ D & UHTXLUHV WKDW m>H@DFK 3UHDPEOHIRUWKH,PSOHPHQWDWLRQRI7LWOH,RIWKH&OHDQ$LU LPSOHPHQWDWLRQSODQLQFOXGHDSURJUDPWRSURYLGHIRUWKH $FW $PHQGPHQWV RI )HG 5HJ HQIRUFHPHQWRIWKHPHDVXUHVl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mHQJDJHLQVXSSRUWLQ RI 6XOIXU'LR[LGH5HYLVLRQV)HG5HJ 2FW DQ\ZD\RUSURYLGHILQDQFLDODVVLVWDQFHIRUOLFHQVHRUSHUPLW SURPXOJDWLQJWKH(3$jVDSSURYDORI.HQWXFN\jV RUDSSURYHDQ\DFWLYLW\ZKLFKGRHVQRWFRQIRUPWR>D6,3@ 6,3 DQG $SSURYDO DQG 3URPXOJDWLRQ RI ,PSOHPHQWDWLRQ DIWHULWKDVEHHQDSSURYHGRUSURPXOJDWHGXQGHUVHFWLRQ 3ODQV 2KLR )HG 5HJ 2FW RIWKLVWLWOHl F m7KHGHWHUPLQDWLRQRIFRQIRUPLW\ SURPXOJDWLQJWKH(3$jVDSSURYDORISRUWLRQVRI2KLRjV6,3 VKDOOEHEDVHGRQWKHPRVWUHFHQWHVWLPDWHVRIHPLVVLRQVl LQFOXGLQJ WKH SRUWLRQV SHUWDLQLQJ WR WKH &LQFLQQDWL &$$ F % PHWURSROLWDQDUHD $VVXSSRUWIRUWKHLUDUJXPHQWWKH\FLWH WKHIROORZLQJIHGHUDOUHJXODWLRQ m(DFKSODQPXVWLQFOXGHD 6XESDUW RI 3DUW ' VHWV IRUWK WKH DFWXDO WUDQVSRUWDWLRQ GHVFULSWLRQRIWKHUHVRXUFHVDYDLODEOHWRWKH6WDWHDQGORFDO FRQIRUPLW\UHTXLUHPHQWVIRUIHGHUDODFWLYLWLHV $QDFWLYLW\ DJHQFLHV DW WKH GDWH RI VXEPLVVLRQ RI WKH SODQ DQG RI DQ\ FRQIRUPV WR D 6,3 LI WKH DQWLFLSDWHG HPLVVLRQV IURP WKH DGGLWLRQDOUHVRXUFHVQHHGHGWRFDUU\RXWWKHSODQGXULQJWKH DFWLYLW\ZLOOQRWIUXVWUDWHD6,3jVSXUSRVHRIHOLPLQDWLQJRU \HDUSHULRGIROORZLQJLWVVXEPLVVLRQl&)5 UHGXFLQJ WKH VHYHULW\ DQG QXPEHU RI YLRODWLRQV RI WKH HPSKDVLV DGGHG LQ WKH SHWLWLRQHUVj EULHI 7KLV ODQJXDJH >1$$46@ DQG DFKLHYLQJ H[SHGLWLRXV DWWDLQPHQW RI VXFK WKH\ DUJXH HPSKDVL]HV WKH XVH RI VHSDUDWH XSWRGDWH VWDQGDUGV FDXVH RU FRQWULEXWH WR DQ\ QHZ YLRODWLRQ H[DFHUEDWH DQ H[LVWLQJ YLRODWLRQ RU GHOD\ WKH WLPHO\ :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
DWWDLQPHQWRIWKH1$$46RUDQ\RWKHUVXFKPLOHVWRQHV6HH GHPRQVWUDWHG E\ VKRZLQJ WKDW WKH IXWXUH HPLVVLRQV RI D &$$ F $ % SROOXWDQWjVSUHFXUVRUVZLOOQRWH[FHHGWKHOHYHOWKDWDOORZHG WKHDUHDWRDFKLHYHDWWDLQPHQWLQWKHILUVWSODFH E 6XESDUW UHDVRQDEO\DYDLODEOHFRQWUROWHFKQRORJ\ 5$&7 UHTXLUHPHQWV 7KHSHWLWLRQHUVDOVRSRLQWWRILQGLQJVPDGHE\WKH(3$LQ DVHSDUDWHUXOHPDNLQJSURFHHGLQJSXEOLVKHGRQ)HEUXDU\ 6XESDUWRI3DUW'UHTXLUHVD6,3IRUDQRQDWWDLQPHQWDUHD nWKH7LHU0RWRU9HKLFOH(PLVVLRQV6WDQGDUGVDQG WRFRQWDLQYDULRXV5$&7UXOHVGHSHQGLQJXSRQWKHVHYHULW\ *DVROLQH 6XOIXU &RQWURO 5HTXLUHPHQWV n WKDW WKH\ DOOHJH RI WKH DUHDjV QRQDWWDLQPHQW 7KH 5$&7 UXOHV JRYHUQ DOO FRQWUDGLFWWKHILQGLQJVPDGHE\WKH(3$LQWKHSUHVHQWFDVH IRUPVRIDLUSROOXWLRQIURPVRXUFHVRWKHUWKDQWUDQVSRUWDWLRQ ,QWKH7LHUUXOHPDNLQJSURFHHGLQJWKH(3$LQFOXGHGWKH )RUDPDUJLQDOQRQDWWDLQPHQWDUHDD6,3LVUHTXLUHGWRDGRSW &LQFLQQDWLPHWURSROLWDQDUHDDPRQJWKRVHWKDWDUHmFHUWDLQRU DQXPEHURIJHQHUDO5$&7UXOHVIRUH[LVWLQJ92&VRXUFHV KLJKO\OLNHO\WRUHTXLUHDGGLWLRQDOHPLVVLRQUHGXFWLRQVl 6HH &$$ D $ $ 6,3 IRU D PRGHUDWH )HG5HJDW QRQDWWDLQPHQW DUHD PXVW QRW RQO\ FRPSO\ ZLWK WKH UHTXLUHPHQWVIRUPDUJLQDOQRQDWWDLQPHQWDUHDVVHHLGEXW %XWWKHILQGLQJVLQWKH7LHUUXOHPDNLQJSURFHHGLQJDVWKH PXVWDOVRDGRSWDGGLWLRQDO5$&7UXOHVIRUVSHFLILFFDWHJRULHV (3$H[SODLQVDUHQRWDSSOLFDEOHKHUH7KHIRFXVRIWKH7LHU RI92&HPLVVLRQV6HH&$$ E 6SHFLILFDOO\&$$ SURFHHGLQJZDVQRWVSHFLILFDOO\WRHYDOXDWHWKHDWWDLQPHQW E $ SURYLGHVDVIROORZV RU QRQDWWDLQPHQW RI WKH &LQFLQQDWL PHWURSROLWDQ DUHD EXW UDWKHUWRGHYHORSDmPDMRUSURJUDPGHVLJQHGWRVLJQLILFDQWO\ 7KH 6WDWH VKDOO VXEPLW D UHYLVLRQ WR WKH DSSOLFDEOH UHGXFH WKH HPLVVLRQV IURP QHZ SDVVHQJHU FDUV DQG OLJKW LPSOHPHQWDWLRQSODQWRLQFOXGHSURYLVLRQVWRUHTXLUHWKH WUXFNVLQFOXGLQJSLFNXSWUXFNVYDQVPLQLYDQVDQGVSRUW LPSOHPHQWDWLRQ RI UHDVRQDEO\ DYDLODEOH FRQWURO XWLOLW\YHKLFOHVlYHKLFOHVZKRVHHPLVVLRQVFRQWULEXWHKHDYLO\ WHFKQRORJ\ XQGHU VHFWLRQ F RI WKLV WLWOH ZLWK WR WKH JHQHUDWLRQ RI JURXQGOHYHO R]RQH )HG 5HJ DW UHVSHFWWR>H@DFKFDWHJRU\RI92&VRXUFHVLQWKHDUHD FRYHUHGE\D>&RQWURO7HFKQLTXH*XLGHOLQH@GRFXPHQW LVVXHG E\ WKH $GPLQLVWUDWRU EHWZHHQ 1RYHPEHU )XUWKHUPRUHWKH(3$UHOLHGXSRQPRUHUHFHQWGDWDLQWKH DQGWKHGDWHRIDWWDLQPHQW SUHVHQWSURFHHGLQJWKDQLQWKH7LHUSURFHHGLQJ7KH(3$ SRLQWV RXW WKDW WKH DLU TXDOLW\ GDWD XVHG LQ WKH 7LHU 7KH(3$KDVDOVRVHWIRUWKJXLGDQFHRQKRZLWLQWHQGVWR UXOHPDNLQJSURFHHGLQJFDPHIURPEHIRUH DQGGLGQRW LQWHUSUHWYDULRXVSURYLVLRQVRIWKH &$$$PHQGPHQWVLQ FRQWDLQ WKH GDWD WKDW ZDV LQFOXGHG LQ WKH &LQFLQQDWL WKH JHQHUDO SUHDPEOH WR WKH DPHQGPHQWV )HG 5HJ PHWURSROLWDQ DUHD UHGHVLJQDWLRQ UHTXHVW ,QGHHG WKH (3$ $SU VXSSOHPHQWHGDW)HG5HJ DFNQRZOHGJHGWKHDYDLODELOLW\RIWKHPRUHUHFHQWDLUTXDOLW\ $SU DQGLQYDULRXVPHPRUDQGDIURPLWV GDWDIRUWKH&LQFLQQDWLPHWURSROLWDQDUHDLQDVHSDUDWH7LHU UHJLRQDO RIILFHV ,Q WKLV JHQHUDO SUHDPEOH WKH (3$ KDV UXOHPDNLQJSURSRVDOWKDWLWSXEOLVKHGDIWHUSURPXOJDWLQJWKH GLUHFWO\DGGUHVVHGWKHUHTXLUHPHQWVIRUUHGHVLJQDWLRQ6HH )HEUXDU\7LHUUXOH6HH&RQWURORI$LU3ROOXWLRQ )HG5HJDW )URP1HZ0RWRU9HKLFOHV 3URSRVHG+HDY\'XW\(QJLQHDQG 9HKLFOH6WDQGDUGVDQG+LJKZD\'LHVHO)XHO6XOIXU&RQWURO 5HTXLUHPHQWV)HG5HJ sXQH *LYHQWKHGLIIHUHQFHVEHWZHHQWKHGDWDXVHGWRJHQHUDWHWKH ILQGLQJV LQ WKH &LQFLQQDWL PHWURSROLWDQ DUHD UHGHVLJQDWLRQ :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
DSSHQGL[:RIWKLVSDUW *XLGHOLQHRQ$LU4XDOLW\0RGHOV l & 7KH &LQFLQQDWL PHWURSROLWDQ DUHDjV VWDWXV DV D 7KLV ODQJXDJH WKH\ FRQWHQG UHTXLUHV WKH (3$ WR XVH QRQDWWDLQPHQWDUHD PRGHOLQJWRVKRZWKDWWKH&LQFLQQDWLPHWURSROLWDQDUHDZLOO PDLQWDLQWKH1$$46$FFRUGLQJWRWKHLULQWHUSUHWDWLRQRI ,Q WKH&LQFLQQDWLPHWURSROLWDQDUHDZDVGHVLJQDWHGDV WKLVODQJXDJHWKH(3$jVUHOLDQFHRQWKHHPLVVLRQVLQYHQWRU\ DQ R]RQH QRQDWWDLQPHQW DUHD SXUVXDQW WR WKH DSSURDFK ZKLFKGRHVQRWLQYROYHPRGHOLQJ GRHVQRWPHHW $PHQGPHQWVWRWKH&$$6HH$SSURYDODQG3URPXOJDWLRQRI WKHUHTXLUHPHQWVRIWKH&$$ ,PSOHPHQWDWLRQ 3ODQV DQG 'HVLJQDWLRQ RI $UHDV IRU $LU 4XDOLW\3ODQQLQJ3XUSRVHV 2KLR)HG5HJ 0DU 7KH (3$jV UHVSRQVH LV WKDW WKH VHFWLRQ RI WKH &RGH RI 7KH&LQFLQQDWLPHWURSROLWDQDUHDFRYHUVFRXQWLHVLQ )HGHUDO 5HJXODWLRQV UHOLHG XSRQ E\ WKH SHWLWLRQHUV DSSOLHV ERWK.HQWXFN\DQG2KLRDQGLVDFFRUGLQJO\UHIHUUHGWRDVD RQO\WRmDWWDLQPHQWGHPRQVWUDWLRQVDQGQRWWRVWDQGDORQH mPXOWL6WDWHR]RQHQRQDWWDLQPHQWDUHDl M ,QWKH PDLQWHQDQFHSODQVVXEPLWWHGXQGHU&$$VHFWLRQ$l,Q \HDUDIWHUWKH &$$$PHQGPHQWVZHUHSDVVHGWKH(3$ LWV EULHI WKH DJHQF\ TXRWHV &)5 D ZKLFK UHDIILUPHG LWV GHVLJQDWLRQ RI WKH DUHD IRU PRGHUDWH R]RQH SURYLGHV WKDW m>H@DFK SODQ PXVW GHPRQVWUDWH WKDW WKH QRQDWWDLQPHQWZLWKDQDWWDLQPHQWGHDGOLQHRI1RYHPEHU PHDVXUHVUXOHVDQGUHJXODWLRQVFRQWDLQHGLQLWDUHDGHTXDWHWR 6HH 'HVLJQDWLRQ RI $UHDV IRU $LU 4XDOLW\ 3ODQQLQJ SURYLGH IRU WKH WLPHO\ DWWDLQPHQW DQG PDLQWHQDQFH RI WKH 3XUSRVHV)HG5HJ 1RY QDWLRQDOVWDQGDUGWKDWLWLPSOHPHQWVl7KH(3$DOVRSRLQWV RXWWKDWWKHVXEVHFWLRQFRQWDLQVQRUHIHUHQFHWR&$$$ %HFDXVH RI WKH DUHDjV VWDWXV .HQWXFN\ DQG2KLRZHUH WKH VHFWLRQ RI WKH &$$ WKDW VSHFLILFDOO\ DGGUHVVHV UHTXLUHGWRVXEPLWUHYLVLRQVWRWKHLUUHVSHFWLYH6,3V E\QR PDLQWHQDQFH SODQV ,QGHHG WKH (3$jV RZQ LQWHUSUHWLYH ODWHU WKDQ 1RYHPEHU WDNLQJ LQWR DFFRXQW WKH PHPRUDQGXP SXEOLVKHG SULRU WR WKH HYDOXDWLRQ RI WKH PHDVXUHVDSSOLFDEOHWRPRGHUDWHR]RQHDUHDVDQGSURYLGLQJ UHGHVLJQDWLRQUHTXHVWLQTXHVWLRQSURYLGHVWKDWDm6WDWHPD\ IRUWKHDWWDLQPHQWRIWKHR]RQHVWDQGDUGE\WKH1RYHPEHU JHQHUDOO\GHPRQVWUDWHPDLQWHQDQFHRIWKH1$$46E\HLWKHU DWWDLQPHQWGHDGOLQH6HH&$$ E $ %RWK VKRZLQJWKDWIXWXUHHPLVVLRQVRIDSROOXWDQWRULWVSUHFXUVRUV VWDWHVVXEPLWWHGWLPHO\UHYLVLRQVEXWWKH(3$ZDVXQDEOHWR ZLOOQRWH[FHHGWKHOHYHORIWKHDWWDLQPHQWLQYHQWRU\RUE\ IXOO\DSSURYHWKHVXEPLWWHG6,3VGXHWRYDULRXVGHILFLHQFLHV PRGHOLQJWRVKRZWKDWWKHIXWXUHPL[RIVRXUFHVDQGHPLVVLRQ 6HH$SSURYDODQG3URPXOJDWLRQRI,PSOHPHQWDWLRQ3ODQVDQG UDWHVZLOOQRWFDXVHDYLRODWLRQRIWKH1$$46l&DOFDJQL 'HVLJQDWLRQRI$UHDVIRU$LU4XDOLW\3ODQQLQJ3XUSRVHV 2KLR 0HPRUDQGXPDW HPSKDVLVDGGHG DQG.HQWXFN\)HG5HJ SURSRVHGsDQ $OWKRXJK WKH SHWLWLRQHUVj LQWHUSUHWDWLRQ RI WKH UHOHYDQW ODQJXDJH LV DW OHDVW DV UHDVRQDEOH DV WKDW RI WKH (3$ WKH 7KH(3$QHYHUSXEOLVKHGDQRWLFHRIGLVDSSURYDOSXUVXDQW (3$jVFRQVWUXFWLRQLVQHLWKHULPSHUPLVVLEOHQRULQFRQIOLFW WR&$$ N EHFDXVHLQ1RYHPEHURI .HQWXFN\ ZLWKDVWDWXWRU\PDQGDWH7KHSKUDVHmWLPHO\DWWDLQPHQWDQG DQG 2KLR VXEPLWWHG UHTXHVWV WR UHGHVLJQDWH WKH &LQFLQQDWL PDLQWHQDQFHlFRXOGEHLQWHUSUHWHGDVOLPLWLQJWKHDSSOLFDWLRQ PHWURSROLWDQ DUHD WR R]RQH DWWDLQPHQW VWDWXV 7KH VWDWHV RIWKHVHFWLRQH[FOXVLYHO\WRVLWXDWLRQVLQZKLFKWKHVWDWHPXVW EDVHGWKHLUUHTXHVWVRQWKHIDFWWKDWWKHDUHDKDGQRWYLRODWHG GHPRQVWUDWH ERWK DWWDLQPHQW DQG PDLQWHQDQFH UDWKHU WKDQ WKHR]RQH1$$46RYHUWKHSUHYLRXVWKUHH\HDUSHULRG7KHVH HQFRPSDVVLQJVLWXDWLRQVLQZKLFKWKHVWDWHPXVWGHPRQVWUDWH UHGHVLJQDWLRQ UHTXHVWV KRZHYHU ZHUH HYHQWXDOO\ GHQLHG RQO\FRQWLQXHGPDLQWHQDQFH0RUHRYHUWKH(3$jVDFWLRQV EHFDXVHWKH&LQFLQQDWLPHWURSROLWDQDUHDKDGH[SHULHQFHGD DUH FRPSOHWHO\ FRQVLVWHQW ZLWK LWV RZQ LQWHUSUHWLYH YLRODWLRQRIWKHR]RQH1$$46LQWKHVXPPHURI 6HH PHPRUDQGXPZKLFKDOORZVIRU1$$46PDLQWHQDQFHWREH 'LVDSSURYDO RI WKH 5HTXHVW WR 5HGHVLJQDWH WKH .HQWXFN\ :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
SRUWLRQRIWKH&LQFLQQDWL1RUWKHUQ.HQWXFN\0RGHUDWH2]RQH UHVRXUFH DQG DXWKRULW\ FRPPLWPHQWV IRU HQIRUFHPHQW 1RQDWWDLQPHQW $UHD WR $WWDLQPHQW DQG WKH $VVRFLDWHG %HFDXVHRIWKHVLPLODULW\RIWKHILUVWWZRDUJXPHQWVWKH\ZLOO 0DLQWHQDQFH 3ODQ )HG 5HJ 6HSW EH DGGUHVVHG WRJHWKHU ZKLOH WKH WKLUG DUJXPHQW ZLOO EH $OWKRXJK.HQWXFN\SHWLWLRQHGIRUDUHYLHZRIWKH$JHQF\jV DGGUHVVHGVHSDUDWHO\ GHWHUPLQDWLRQWKHDJHQF\jVGLVDSSURYDOZDVXSKHOGE\WKLV FRXUWLQ.HQWXFN\Y(3$1R :/ 'HPRQVWUDWLRQRIPDLQWHQDQFH WK &LU 6HSW XQSXEOLVKHG WDEOH RSLQLRQ 7KH (3$ UDWKHU WKDQ SXEOLVK D QRWLFH RI GLVDSSURYDO LQVWHDG ,QHYDOXDWLQJ.HQWXFN\jVDQG2KLRjVPDLQWHQDQFHSODQV JUDQWHGWKHDUHDWZRRQH\HDUH[WHQVLRQV6HH$SSURYDODQG WKH(3$XVHGDQDWWDLQPHQWHPLVVLRQVLQYHQWRU\DSSURDFKWR 3URPXOJDWLRQ RI ,PSOHPHQWDWLRQ 3ODQV DQG 'HVLJQDWLRQ RI GHWHUPLQH WKDW WKH VWDWHVj SODQV ZRXOG mSURYLGH IRU $UHDVIRU$LU4XDOLW\3ODQQLQJ3XUSRVHV 2KLRDQG.HQWXFN\ PDLQWHQDQFH RI WKH >1$$46@ IRU DW OHDVW \HDUV DIWHU )HG 5HJ sXQH 7KHVH UHGHVLJQDWLRQl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jV DQG 2KLRjV 6,3 VXEPLVVLRQV DQG UHGHVLJQDWLRQ DQGWKH WR WLPHSHULRGV6HH)HG5HJDW UHTXHVWV ZDV SXEOLVKHG RQ sDQXDU\ 6HH )HG 7KH(3$DOVRGHWHUPLQHGWKDWIXWXUHHPLVVLRQVLQWKH 5HJDW DUHDZHUHSURMHFWHGWRGHFUHDVHIURPWKH OHYHOV6HHLG $SSO\LQJWKHDWWDLQPHQWHPLVVLRQVLQYHQWRU\DSSURDFKWKH ,Q SXEOLVKLQJ WKH QRWLFH WKH (3$ DFNQRZOHGJHG WKDW DJHQF\ FRQFOXGHG WKDW WKH FRPELQDWLRQ RI WKHVH ILQGLQJV .HQWXFN\ GLG QRW KDYH IXOO\ DSSURYHG WUDQVSRUWDWLRQ mVKRZVWKDWWKHFXUUHQWOHYHORIHPLVVLRQVLVDGHTXDWHWRNHHS FRQIRUPLW\ UHTXLUHPHQWV LQ LWV 6,3 IRU WKH &LQFLQQDWL WKHDUHDLQDWWDLQPHQWlIRUWKHQH[WWHQ\HDUV)HG5HJDW PHWURSROLWDQDUHD,WGHWHUPLQHGKRZHYHUWKDWWKH3DUW' WUDQVSRUWDWLRQFRQIRUPLW\UHTXLUHPHQWVZHUHQRWDSSOLFDEOH IRU WKH SXUSRVHV RI HYDOXDWLQJ WKH UHGHVLJQDWLRQ UHTXHVWV 7KH SHWLWLRQHUV KRZHYHU DUJXH WKDW WKH DWWDLQPHQW mEHFDXVH DUHDV DUH VXEMHFW WR WKH FRQIRUPLW\ UHTXLUHPHQWV HPLVVLRQVLQYHQWRU\DSSURDFKGRHVQRWPHHWWKHUHTXLUHPHQWV UHJDUGOHVVRIZKHWKHUWKH\DUHUHGHVLJQDWHGWRDWWDLQPHQWDQG RIWKH&$$7KH\FKDOOHQJHWKH(3$jVDXWKRULW\WRUHO\RQ PXVWLPSOHPHQWFRQIRUPLW\XQGHU)HGHUDOUXOHVLIVWDWHUXOHV PHWKRGV RWKHU WKDQ DLU TXDOLW\ PRGHOLQJ WR GHPRQVWUDWH DUHQRW\HWDSSURYHGl)HG5HJDW PDLQWHQDQFHZKHQWKHGHPRQVWUDWLRQRIDWWDLQPHQWLVQRWDOVR UHTXLUHG 7KH SHWLWLRQHUV SRLQW RXW WKDW XQGHU &)5 7KH(3$DOVRDFNQRZOHGJHGWKDW2KLRKDGQRW\HWIXOO\ D WKH mDGHTXDF\ RI D FRQWURO VWUDWHJ\ DGRSWHGWKH5$&7UXOHVFRQFHUQLQJWKHFDWHJRULHVRI92& VKDOO EH GHPRQVWUDWHG E\ PHDQV RI DSSOLFDEOH DLU TXDOLW\ PRGHOV GDWD EDVHV DQG RWKHU UHTXLUHPHQWV VSHFLILHG LQ :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
VHHDOVR6RXWKZHVWHUQ3D*URZWK$OOLDQFHY%URZQHU VRXUFHVFRYHUHGE\WKH&RQWURO7HFKQLTXH*XLGHOLQH &7* )G WK &LU 7KH 6XSUHPH &RXUW KDV GRFXPHQWLVVXHGE\WKH(3$EHWZHHQ1RYHPEHU HVWDEOLVKHG D WZRVWHS SURFHVV IRU UHYLHZLQJ DQ DJHQF\jV DQG WKH DWWDLQPHQW GDWH 7KHVH 92& VRXUFH FDWHJRULHV LQWHUSUHWDWLRQRIDVWDWXWHWKDWLWDGPLQLVWHUV6HH&KHYURQ LQFOXGHG WKH DHURVSDFH V\QWKHWLF RUJDQLF FRPSRXQG 86$,QFY1DWXUDO5HV'HI&RXQFLO,QF86 PDQXIDFWXULQJ UHDFWRU DQG GLVWLOODWLRQV SURFHVVHV ,I m&RQJUHVV KDV GLUHFWO\ VSRNHQ WR WKH SUHFLVH VKLSEXLOGLQJDQGZRRGIXUQLWXUHLQGXVWULHV6HH)HG5HJ TXHVWLRQDWLVVXHlLGDWWKHQWKLVFRXUWmPXVWJLYHHIIHFW DW'HVSLWHLWVVWDQGDUGUHGHVLJQDWLRQSROLF\WKDWmZRXOG WRWKHXQDPELJXRXVO\H[SUHVVHGLQWHQWRI&RQJUHVVl,GDW UHTXLUH IXOO DGRSWLRQ VXEPLVVLRQ DQG DSSURYDO RI >FHUWDLQ %XWmLIWKHVWDWXWHLVVLOHQWRUDPELJXRXVZLWKUHVSHFWWR 5$&7 UXOHV@ UXOHV SULRU WR DSSURYDO RI WKH UHGHVLJQDWLRQ WKHVSHFLILFLVVXHWKHTXHVWLRQIRUWKHFRXUWLVZKHWKHUWKH UHTXHVWlLGWKH(3$SURSRVHGWRGHSDUWIURPWKLVSROLF\E\ DJHQF\jVDQVZHULVEDVHGRQDSHUPLVVLEOHFRQVWUXFWLRQRIWKH DSSURYLQJ.HQWXFN\jVDQG2KLRjVUHGHVLJQDWLRQUHTXHVWEDVHG VWDWXWHl,G RQWKHIROORZLQJH[SODQDWLRQIRXQGLQWKH)HGHUDO5HJLVWHU ,QHYDOXDWLQJZKHWKHUWKH(3$jVFRQVWUXFWLRQRIDVWDWXWHLV 6LQFH WKH GXH GDWH IRU WKH &7* 5$&7 UXOHV DW LVVXH SHUPLVVLEOH D FRXUW mQHHG QRW ILQG WKDW LW LV WKH RQO\ SUHFHGHG WKH VXEPLVVLRQ RI WKH UHGHVLJQDWLRQ UHTXHVW SHUPLVVLEOHFRQVWUXFWLRQWKDW(3$PLJKWKDYHDGRSWHGEXW (3$ EHOLHYHV KRZHYHU WKDW LQ WKH FRQWH[W RI WKH RQO\WKDW(3$jVXQGHUVWDQGLQJRIWKLVYHU\FRPSOH[VWDWXWHLV SDUWLFXODUFLUFXPVWDQFHVRIWKLVUHGHVLJQDWLRQWKDWLWLV D VXIILFLHQWO\ UDWLRQDO RQH WR SUHFOXGH D FRXUW IURP SHUPLVVLEOHWRGHSDUWIURPWKDWSROLF\DQGLQVWHDGDFFHSW VXEVWLWXWLQJLWVMXGJPHQWIRUWKDWRI(3$l&KHP0IUV$VVjQ D FRPPLWPHQW WR LPSOHPHQW WKHVH 5$&7 UXOHV DV Y1DWXUDO5HV'HI&RXQFLO,QF86 FRQWLQJHQF\ PHDVXUHV LQ WKH PDLQWHQDQFH SODQ UDWKHU LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG 7KLV FRXUW KRZHYHU WKDQUHTXLUHIXOODGRSWLRQDQGDSSURYDORIWKHUXOHVSULRU PXVW DOVR mUHMHFW DGPLQLVWUDWLYH FRQVWUXFWLRQV WKDW DUH WR DSSURYDO RI WKH UHGHVLJQDWLRQ 6HH *UDQG 5DSLGV LQFRQVLVWHQWZLWKWKHVWDWXWRU\PDQGDWHl6HF,QGXV$VVjQY 0LFKLJDQ UHGHVLJQDWLRQ )5 sXQH %GRI*RYHUQRUVRIWKH)HG5HVHUYH6\V86 )LUVW WKH 5$&7 UXOHV DW LVVXH LQ WKLV FLWDWLRQVRPLWWHG DQGFRQGXFWDmVHDUFKLQJUHYLHZl UHGHVLJQDWLRQZHUHQRWQHHGHGWREULQJDERXWDWWDLQPHQW RIWKH(3$jVXVHRIDLUTXDOLW\SURMHFWLRQVXQGHUWKH&$$ RI WKH VWDQGDUG LQ &LQFLQQDWL 6HFRQG 2KLR KDV 2KLRY(3$ )G WK&LU GHPRQVWUDWHG FRQWLQXHG PDLQWHQDQFH RI WKH R]RQH VWDQGDUG WKURXJK ZLWKRXW WKH LPSOHPHQWDWLRQ RI % $SSURYDO RI .HQWXFN\jV DQG 2KLRjV FOHDQ DLU WKHVH PHDVXUHV 7KLUG 2KLR KDV SODFHG RWKHU PDLQWHQDQFHSODQV FRQWLQJHQF\PHDVXUHVLQWKHPDLQWHQDQFHSODQWKDWZRXOG EULQJ DERXW IDU JUHDWHU HPLVVLRQ UHGXFWLRQV WKDQ WKH :DOO)UHPRQWDQGWKH6LHUUD&OXEUDLVHWKUHHFKDOOHQJHV 5$&7UXOHVDQGZRXOGWKHUHIRUHEHVXEVWDQWLDOO\PRUH WRWKH(3$jVHYDOXDWLRQRIWKHFOHDQDLUPDLQWHQDQFHSODQVIRU HIIHFWLYHLQWHUPVRIFRUUHFWLQJYLRODWLRQVDWWULEXWDEOHWR WKH &LQFLQQDWL PHWURSROLWDQ DUHD 7KH\ DUJXH WKDW WKH ORFDOHPLVVLRQVIURPWKH&LQFLQQDWLDUHDWKDWPD\RFFXU PHWKRGVXVHGE\WKH(3$WRGHPRQVWUDWHPDLQWHQDQFHGRQRW DIWHUUHGHVLJQDWLRQ PHHW WKH UHTXLUHPHQWV RI WKH &$$ WKH (3$jV RZQ PRGHOV DSSOLHG LQ D GLIIHUHQW UXOHPDNLQJ SURFHHGLQJ ,G GHPRQVWUDWH WKDW WKH &LQFLQQDWL PHWURSROLWDQ DUHD ZLOO QRW PDLQWDLQFRPSOLDQFHZLWKWKHR]RQH1$$46RYHUWKHQH[W ,Q WKHLU FRPPHQWV WR WKH (3$jV QRWLFH RI SURSRVHG WHQ \HDUV DQG WKH PDLQWHQDQFH SODQV ODFN WKH UHTXLUHG DSSURYDO:DOO)UHPRQWDQGWKH6LHUUD&OXEFKDOOHQJHGWKH :DOOHWDOY(3$HWDO 1R 1R :DOOHWDOY(3$HWDO
(3$jVMXVWLILFDWLRQV6HH/HWWHUIURP0DUWL6LQFODLU$FWLQJ 7KHLU DOWHUQDWLYH DUJXPHQW ZDV WKDW WKH (3$ KDG QR &KDLU RI WKH 2KLR &KDSWHU RI WKH 6LHUUD &OXE WR s (OPHU DXWKRULW\ WR GHWHUPLQH WKDW WKH WUDQVSRUWDWLRQFRQIRUPLW\ %RUW]HU&KLHIRIWKH5HJXODWLRQ'HYHORSPHQW6HFWLRQRIWKH UHTXLUHPHQWV RI 3DUW ' 6XESDUW GLG QRW DSSO\ WR WKH (3$ )HE 7KH\ DUJXHG WKDW .HQWXFN\jV DQG UHGHVLJQDWLRQUHTXHVWV$FFRUGLQJWRWKHSHWLWLRQHUVm>W@KH 2KLRjVPDLQWHQDQFHSODQVUHTXLUHGXQGHU&$$$ZHUH IDFW WKDW WKH VWDWH LV VWLOO REOLJDWHG WR VXEPLW >VWDWH GHILFLHQW 7R VXSSRUW WKHLU DUJXPHQW WKH SHWLWLRQHUV WUDQVSRUWDWLRQ FRQIRUPLW\@ SURFHGXUHV DQG WKDW IHGHUDO FRQWHQGHGWKDWWKH&$$UHTXLUHVWKDWDLUTXDOLW\PRGHOVEH FRQIRUPLW\SURFHGXUHVVWLOODSSO\KDUGO\H[FXVHVWKHVWDWHjV XVHG WR GHWHUPLQHDVWDWHjVDELOLW\WRDFKLHYHPDLQWHQDQFH IDLOXUHWRDGRSWVXFKSURFHGXUHVDVUHTXLUHGE\VWDWXWHl ZKLFK WKH (3$ KDG QRW GRQH 7KH\ DOVR FKDOOHQJHG WKH UHOLDELOLW\ RI WKH (3$jV DVVXPSWLRQV UHJDUGLQJ IXWXUH 7KHILQDODUJXPHQWRIWKHSHWLWLRQHUVZDVWKDWWKH(3$KDG HPLVVLRQ OHYHOV DUJXLQJ WKDW m>W@KH KLVWRU\ RI WKLV QRDXWKRULW\WRUHGHVLJQDWHWKH&LQFLQQDWLPHWURSROLWDQDUHD QRQDWWDLQPHQWDUHDVKRZVWKDW(3$FDQQRWUDWLRQDOO\DVVXPH EHIRUHWKHVWDWHVKDGIXOO\DGRSWHGDOORIWKH5$&7UXOHVRI WKDWHPLVVLRQOHYHOVFRUUHODWHZLWKR]RQHOHYHOVLQVRPHVRUW 3DUW ' 6XESDUW WKDW ZHUH VSHFLILFDOO\ PDQGDWHG XQGHU RIOLQHDURUFRQVLVWHQWIDVKLRQl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mFHUWDLQ RU GHWHUPLQDWLRQ WKDW WKH &LQFLQQDWL PHWURSROLWDQ DUHD KDG KLJKO\ OLNHO\ WR UHTXLUH DGGLWLRQDO HPLVVLRQ UHGXFWLRQV LQ DWWDLQHG WKH RQHKRXU 1$$46 IRU JURXQGOHYHO R]RQH DQG RUGHUWRDWWDLQDQGPDLQWDLQWKHKRXUR]RQH1$$46l KDGPHWWKHRWKHUUHTXLUHPHQWVIRUUHGHVLJQDWLRQ7KH(3$ )HG5HJDW 7KLVILQGLQJZDVEDVHGRQFRPSXWHU DFFRUGLQJO\ LVVXHG D ILQDO UXOLQJ RQ sXQH WR EH PRGHOV WKDW VKRZHG WKDW WKH &LQFLQQDWL PHWURSROLWDQ DUHD HIIHFWLYH sXO\ JUDQWLQJ .HQWXFN\jV DQG 2KLRjV ZRXOGH[FHHGWKHR]RQH1$$46E\LIQRDGGLWLRQDO UHGHVLJQDWLRQUHTXHVWV6HH$SSURYDODQG3URPXOJDWLRQRI HPLVVLRQ UHGXFWLRQV ZHUH PDGH EH\RQG WKRVH DOUHDG\ ,PSOHPHQWDWLRQ 3ODQV DQG 'HVLJQDWLRQ RI $UHDV IRU $LU H[SHFWHG6HH)HG5HJDW 4XDOLW\3ODQQLQJ3XUSRVHV 2KLRDQG.HQWXFN\)HG5HJ sXQH 7KLV WLPHO\ SHWLWLRQ IRU UHYLHZ 7KH SHWLWLRQHUV DOVR DUJXHG WKDW WKH PDLQWHQDQFH SODQV IROORZHG IDLOHG WR FRPSO\ ZLWK &$$ F ( L EHFDXVH WKH SODQV ODFNHG mH[SOLFLW FRPPLWPHQWV RI OHJDO DXWKRULW\ DQG ,,$1$/<6,6 UHVRXUFHV WR LPSOHPHQWl DOO RI WKH SODQVj PHDVXUHV ,Q SDUWLFXODUWKHSHWLWLRQHUVFODLPHGWKDWWKHPDLQWHQDQFHSODQV $ 6WDQGDUGRIUHYLHZ ODFNHGHQIRUFHPHQWSURJUDPVDVZHOODVFRQFUHWHDVVXUDQFHV WKDW.HQWXFN\DQG2KLRZRXOGKDYHWKHQHFHVVDU\SHUVRQQHO $ILQDODFWLRQRIWKH(3$ZLOOQRWEHRYHUWXUQHGXQOHVVWKH DQGIXQGLQJWRFDUU\RXWWKHSODQV GHFLVLRQLVmDUELWUDU\FDSULFLRXVDQDEXVHRIGLVFUHWLRQRU RWKHUZLVHQRWLQDFFRUGDQFHZLWKODZl86& $
Reference
- Status
- Published