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    1R Y  !  )5$1&,6&2 s$9,(5 +(55(5$  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV 1R n%HUQLFH%'RQDOG'LVWULFWsXGJH $UJXHG 0DUFK 'HFLGHGDQG)LOHG 6HSWHPEHU %HIRUH 5<$1DQG%$7&+(/'(5&LUFXLWsXGJHV /$:621'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 5DOSK$6LYLOOD2)),&(2)7+()('(5$/ 38%/,&'()(1'(5)257+(:(67(51',675,&72) 7(11(66((0HPSKLV7HQQHVVHHIRU$SSHOODQW7UDF\/

7KH +RQRUDEOH 'DYLG 0 /DZVRQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY+HUUHUD 1R

%HUU\ $66,67$17 81,7(' 67$7(6 $77251(< 0HPSKLV7HQQHVVHHIRU$SSHOOHH21%5,() 5DOSK$ 6LYLOOD2)),&(2)7+()('(5$/38%/,&'()(1'(5 )25 7+( :(67(51 ',675,&7 2) 7(11(66(( 0HPSKLV 7HQQHVVHH IRU $SSHOODQW  7UDF\ / %HUU\ $66,67$17 81,7(' 67$7(6 $77251(< 0HPSKLV 7HQQHVVHHIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 5<$1 &LUFXLW sXGJH  7KH GHIHQGDQW )UDQFLVFR sDYLHU +HUUHUD SOHG JXLOW\ WR FKDUJHV RI     LOOHJDO HQWU\ DIWHU SUHYLRXV GHSRUWDWLRQ LQ YLRODWLRQ RI  86& †  D  E   DQG   LOOHJDO DOLHQ LQ SRVVHVVLRQ RI D ILUHDUP LQ YLRODWLRQRI86&†  J  +HZDVVHQWHQFHGWR  PRQWKVjLPSULVRQPHQW+HUUHUDQRZDSSHDOVWKHSUHJXLOW\ SOHD GHFLVLRQ RI WKH GLVWULFW FRXUW GHQ\LQJ KLV PRWLRQ WR VXSSUHVVHYLGHQFHIRXQGLQKLVYHKLFOHDQGWKHVHQWHQFLQJ SKDVHGHFLVLRQWRGHQ\+HUUHUDjVUHTXHVWWRJURXSKLVFKDUJHG RIIHQVHV WRJHWKHU IRU VHQWHQFLQJ SXUSRVHV  :H DIILUP WKH GLVWULFWFRXUWjVMXGJPHQW , +HUUHUDZDVERUQLQ0H[LFREXWDGPLWVWREHLQJGHSRUWHG VL[WLPHVIURPWKH8QLWHG6WDWHV2QsXO\ +HUUHUD ZDVIRXQGEDFNLQWKH8QLWHG6WDWHVGXULQJDYHKLFOHWUDIILF VWRSE\DPHPEHURIWKH0HPSKLV3ROLFH'HSDUWPHQW2IILFHU *DU\ 0F&RUG  0F&RUG WHVWLILHG WKDW ZKHQ KH VWRSSHG +HUUHUDIRUVSHHGLQJDQGDSSURDFKHGWKHYHKLFOHKHQRWLFHG WKDW+HUUHUDmZDVGRLQJDORWRIPRYLQJDURXQGXSWKHUHDQG >KH@GLGQjWNQRZZKDW>+HUUHUD@ZDVGRLQJl 0F&RUG WRRN +HUUHUDjV GULYHUjV OLFHQVH DQG WKH FDU UHJLVWUDWLRQDQGWKHQSODFHGKLPLQWKHEDFNVHDWRIWKHSROLFH YHKLFOH  $IWHU ZDONLQJ DURXQG +HUUHUDjV YHKLFOH 0F&RUG DVNHG+HUUHUDIRUFRQVHQWWRVHDUFKWKHFDUDQG+HUUHUDJDYH WKHRIILFHUSHUPLVVLRQEHFDXVHKHmKDGQRWKLQJWRFRQFHDOl  8QLWHG6WDWHVY+HUUHUD 1R 1R 8QLWHG6WDWHVY+HUUHUD 

$FFRUGLQJWR866*†'RIIHQVHVPD\EHJURXSHG :KLOH VHDUFKLQJ WKH FDU 0F&RUG GLVFRYHUHG D s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†' D  G  FRXUWGHQLHGWKHPRWLRQ ,Q DGGLWLRQ DFFRUGLQJ WR $SSOLFDWLRQ 1RWH  RI WKH VDPH SURYLVLRQ LI WKHUH LV QR LGHQWLILDEOH YLFWLP WKH VRFLHWDO $ PRQWK ODWHU +HUUHUD SOHG JXLOW\ WR WZR FKDUJHV LQWHUHVWVPXVWEHFRQVLGHUHGm,QVXFKFDVHVWKHFRXQWVDUH   LOOHJDO HQWU\ DIWHU SUHYLRXV GHSRUWDWLRQ LQ YLRODWLRQ RI JURXSHGWRJHWKHUZKHQWKHVRFLHWDOLQWHUHVWVWKDWDUHKDUPHG 86&† D  E  DQG  LOOHJDODOLHQLQSRVVHVVLRQ DUHFORVHO\UHODWHGl866*†'FRPPHQW Q  RI D ILUHDUP LQ YLRODWLRQ RI  86& †  J    2Q )HEUXDU\WKHGLVWULFWFRXUWFRQGXFWHGDVHQWHQFLQJ 7KHODZSURKLELWLQJLOOHJDODOLHQVIURPSRVVHVVLQJILUHDUPV KHDULQJ DW ZKLFK +HUUHUD REMHFWHG WR WKH IDLOXUH RI WKH 86&†  J SURWHFWVVRFLHW\DJDLQVWWKRVHZKRKDYH SUREDWLRQ RIILFHU WR JURXS WKH FRXQWV RI FRQYLFWLRQ  7KH EHHQGHWHUPLQHGXQTXDOLILHGWRSRVVHVVILUHDUPV+RZHYHU GLVWULFW FRXUW RYHUUXOHG WKH REMHFWLRQ DQG +HUUHUD ZDV WKHODZSURKLELWLQJDQDOLHQIURPLOOHJDOO\HQWHULQJWKH8QLWHG VHQWHQFHG WR  PRQWKVj LPSULVRQPHQW  7KLV DSSHDO 6WDWHV DIWHU D SUHYLRXV GHSRUWDWLRQ  86& †  LV IROORZHG GHVLJQHGWRHIIHFWLYHO\HQIRUFHWKHLPPLJUDWLRQODZV6LQFH WKHSXUSRVHEHKLQGWKHVHODZVLVGLVVLPLODUWKHGLVWULFWFRXUW ,, SURSHUO\GLGQRWJURXSWKHPWRJHWKHU:HDUHIRUWLILHGLQWKLV YLHZ E\ WKH UHDVRQLQJ RI WKH 6HYHQWK 1LQWK DQG 7HQWK m2QUHYLHZRIPRWLRQVWRVXSSUHVVHYLGHQFHILQGLQJVRI &LUFXLWV ZKLFK KDYH GHWHUPLQHG WKDW WKH VRFLHWDO LQWHUHVWV IDFW ZLOO EH XSKHOG XQOHVV FOHDUO\ HUURQHRXV  KRZHYHU D LQYROYHG LQ SURKLELWLQJ DQ DOLHQ IURP LOOHJDO HQWU\ DIWHU D GLVWULFW FRXUWjV FRQFOXVLRQV RI ODZ DUH UHYLHZHG GH QRYRl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

,,, +HUUHUD DUJXHV WKDW KH PD\ DSSHDO WKLV LVVXH EHFDXVH KH LQWHQGHGWRRIIHUDFRQGLWLRQDOSOHDDQGWKRXJKWKHKDGGRQH ,W LV HOHPHQWDO WKDW D JXLOW\ SOHDGLQJ GHIHQGDQW PD\ QRW VR EDVHG RQ WZR WKLQJV WKDW RFFXUUHG DW WKH SOHD KHDULQJ DSSHDO DQ DGYHUVH SUHSOHD UXOLQJ RQ D VXSSUHVVLRQ RI )LUVWDWWKHKHDULQJ+HUUHUDjVFRXQVHOVWDWHGWKDWWKLVZDVLQ HYLGHQFHPRWLRQXQOHVVKHKDVSUHVHUYHGWKHULJKWWRGRVRE\ IDFWDFRQGLWLRQDOSOHD6HFRQGWKHGLVWULFWFRXUWVWDWHGDWWKH HQWHULQJDFRQGLWLRQDOSOHDRIJXLOW\LQFRPSOLDQFHZLWK)HG VHQWHQFLQJ KHDULQJ m0U +HUUHUD >GHIHQVH FRXQVHO@ UDLVHG 5&ULP3 D  ZKLFKVWDWHV  WKRVHDUJXPHQWVDWWKHVXSSUHVVLRQKHDULQJDQGKHDUJXHGWKDW RQ\RXUEHKDOI$VWKH&RXUWGHFLGLQJWKRVHLVVXHV,GHFLGHG  &RQGLWLRQDO3OHDV:LWKWKHDSSURYDORIWKHFRXUW WKRVHDJDLQVW\RXEDVHGXSRQWKHSURRIEXW\RXZLOOEHDEOH DQG WKH FRQVHQW RI WKH JRYHUQPHQW D GHIHQGDQW PD\ WRDSSHDOP\UXOLQJRQWKDWDOVRl7KHJRYHUQPHQWGLGQRW HQWHU D FRQGLWLRQDO SOHD RI JXLOW\ RU QROR FRQWHQGHUH PDNHDQREMHFWLRQWRWKHUHPDUNVRIWKHGLVWULFWFRXUWMXGJH UHVHUYLQJ LQ ZULWLQJ WKH ULJKW RQ DSSHDO IURP WKH UHJDUGLQJ ZKHWKHU +HUUHUD KDG RU KDG QRW HQWHUHG D MXGJPHQWWRUHYLHZRIWKHDGYHUVHGHWHUPLQDWLRQRIDQ\ FRQGLWLRQDOSOHD VSHFLILHGSUHWULDOPRWLRQ$GHIHQGDQWZKRSUHYDLOVRQ DSSHDOVKDOOEHDOORZHGWRZLWKGUDZWKHSOHD :HDUHWURXEOHGE\WKHUROHWKDWWKHGLVWULFWFRXUWDQGWKH JRYHUQPHQW PD\ KDYH SOD\HG LQ FRQWULEXWLQJ WR +HUUHUDjV :HEHOLHYHWKDWLWLVLPSRUWDQWWRQRWHLQSDVVLQJWKDWWKH EHOLHIWKDWKHHQWHUHGDFRQGLWLRQDOJXLOW\SOHD+RZHYHUZH SOHDDJUHHPHQWPDGHXQGHUVXESDUDJUDSK H RI5XOHQHHG H[SUHVV QR RSLQLRQ DV WR WKH HIIHFW RI WKH FRPELQHG QRW EH LQ ZULWLQJ DOWKRXJK D ZULWWHQ DJUHHPHQW LV WKH PLVVWDWHPHQWVRIGHIHQVHFRXQVHODQGWKHVHQWHQFLQJMXGJH SUHIHUUHG SUDFWLFH  &RQGLWLRQDO JXLOW\ SOHDV KRZHYHU WRJHWKHU ZLWK WKH JRYHUQPHQWjV VLOHQFH RQ WKH TXHVWLRQ RI UHSUHVHQWDQH[FHSWLRQWRWKHJHQHUDOUXOHWKDWDJXLOW\SOHD ZKHWKHU WKH GHIHQGDQWjV JXLOW\ SOHD ZDV D NQRZLQJ DQG ZDLYHV DOO QRQMXULVGLFWLRQDO GHIHFWV LQ WKH SUHSOHD YROXQWDU\SOHD:HKHOGLQ%HUU\Y0LQW]HV)G SURFHHGLQJV6HH7ROOHWWY+HQGHUVRQ86  WK&LU  WKDWWKHDVVHVVPHQWRIZKHWKHUDJXLOW\   $FFRUGLQJO\WKLVmVSHFLDOlSOHDFDUULHVZLWKLWWKH SOHDLVYROXQWDULO\DQGLQWHOOLJHQWO\PDGHPXVWEHEDVHGRQD VSHFLDOUHTXLUHPHQWWKDWLWEHmLQZULWLQJlVRWKDWDSUHFLVH WRWDOLW\RIWKHFLUFXPVWDQFHV,QWKLVFDVHKRZHYHUQHLWKHU UHFRUG FDQ EH PDGH ERWK RI WKH IDFW RI WKH JRYHUQPHQWjV +HUUHUDjVEHOLHIQRUWKHGLVWULFWFRXUWjVPLVVWDWHPHQWRIWKH FRQVHQWDQGWKHmVSHFLILHGSUHWULDOPRWLRQl5XOH D   ODZDUHHQRXJKWRWUXPSWKHSODLQODQJXDJHRI5XOH7KH ZKLFKWKHGHIHQGDQWUHVHUYHVWKHULJKWWRFKDOOHQJH UXOHVWDWHVSODLQO\WKDWDFRQGLWLRQDOJXLOW\SOHDPXVWEHLQD ZULWLQJWKDWUHVHUYHVWKHULJKW WR DSSHDODQHDUOLHUDGYDQFH ,WLVXQGLVSXWHGWKDW+HUUHUDjVZULWWHQSOHDDJUHHPHQWGRHV UXOLQJ RQ D SUHWULDO PRWLRQ DQG WKH ZULWLQJ PXVW EHDU WKH QRWFRQWDLQDQ\ODQJXDJHWKDW+HUUHUDUHVHUYHGWKHULJKWWR JRYHUQPHQWjVFRQVHQW7KHUHLVQRVXFKZULWLQJLQWKLVFDVH DSSHDO WKLV LVVXH RU DQ\ LQGLFDWLRQ WKDW WKH JRYHUQPHQW 7KHUHIRUH+HUUHUDKDVZDLYHGKLVULJKWWRDSSHDOWKHGLVWULFW FRQVHQWHGWRDFRQGLWLRQDOSOHD7KHDJUHHPHQWGRHVVWDWH FRXUWjVRUGHUGHQ\LQJWKHSUHSOHDVXSSUHVVLRQPRWLRQ WKDWm>W@KLV3OHD$JUHHPHQWFRQVWLWXWHVWKHHQWLUHDJUHHPHQW EHWZHHQWKHSDUWLHVDQGWKHSDUWLHVDJUHHWKDWDQ\LVVXHVQRW +HUUHUD DUJXHV WKDW WKH FRXQWV WR ZKLFK KH SOHG JXLOW\ VSHFLILFDOO\ DGGUHVVHG E\ WKLV 3OHD $JUHHPHQW VKDOO EH LOOHJDOHQWU\DIWHUDSUHYLRXVGHSRUWDWLRQDQGLOOHJDODOLHQLQ UHVROYHG E\ WKH &RXUW LQ DFFRUGDQFH ZLWK WKH DSSOLFDEOH SRVVHVVLRQRIDILUHDUPVKRXOGKDYHEHHQJURXSHGWRJHWKHU VWDWXWHV JXLGHOLQHV UXOHV DQG FDVH ODZl  7KXV WKH IRUSXUSRVHVRIVHQWHQFLQJ:HGLVDJUHH JRYHUQPHQWDUJXHVSXUVXDQWWRWKHSODLQODQJXDJHRI5XOH +HUUHUDKDVZDLYHGKLVULJKWWRDSSHDOWKH)RXUWK$PHQGPHQW LVVXH