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

52%(57 /,77/( ; 3ODLQWLII$SSHOODQW    1R Y  !  %3 (;3/25$7,21 2,/  &203$1< 5,&+$5'  %58=,1$,QGLYLGXDOO\DQGLQ  KLVFDSDFLW\DVVWRUHPDQDJHU  IRU%32LO&RPSDQ\   'HIHQGDQWV$SSHOOHHV  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1R n+HUPDQs:HEHU'LVWULFWsXGJH $UJXHG sXO\ 'HFLGHGDQG)LOHG 6HSWHPEHU %HIRUH &/$<*,/0$1DQG:$//$&(&LUFXLW sXGJHV

7KH +RQRUDEOH s &OLIIRUG :DOODFH &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH 1LQWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ

  /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 1R 1R /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 

BBBBBBBBBBBBBBBBB &21&/86,21 &2816(/ $FFRUGLQJO\ZH$)),50WKHGLVWULFWFRXUWjVRUGHULQVRIDU DV LW JUDQWHG VXPPDU\ MXGJPHQW WR 'HIHQGDQW %UX]LQD $5*8('   :LOOLDP ' %HOO 6U &LQFLQQDWL 2KLR IRU +RZHYHU ZH 5(9(56( WKH GLVWULFW FRXUWjV JUDQW RI $SSHOODQW5REHUW:0D[ZHOO,,.($7,1*08(7+,1* VXPPDU\MXGJPHQWWR'HIHQGDQW%3RQ3ODLQWLIIjVUHWDOLDWLRQ ./(.$03&LQFLQQDWL2KLRIRU$SSHOOHHV21%5,() FODLP  7KLV FDVH LV 5(0$1'(' IRU IXUWKHU SURFHHGLQJV :LOOLDP'%HOO6U&LQFLQQDWL2KLRIRU$SSHOODQW5REHUW FRQVLVWHQWZLWKWKHRSLQLRQRIWKLV&RXUW : 0D[ZHOO ,, .($7,1* 08(7+,1*  ./(.$03 &LQFLQQDWL2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB &/$<&LUFXLWsXGJH3ODLQWLII5REHUW/LWWOHDSSHDOVIURP WKH GLVWULFW FRXUWjV RUGHU JUDQWLQJ VXPPDU\ MXGJPHQW WR 'HIHQGDQWV%3([SORUDWLRQ 2LO&R m%3l DQG5LFKDUG %UX]LQDRQKLV7LWOH9,,UHWDOLDWLRQFODLP3ODLQWLIIjVSULPDU\ FRQWHQWLRQVRQDSSHDODUHWKDWWKHGLVWULFWFRXUWHUURQHRXVO\ FRQFOXGHGWKDW  KHKDGQRWSUHVHQWHGVXIILFLHQWHYLGHQFHWR HVWDEOLVK D FDXVDO FRQQHFWLRQ EHWZHHQ WKH ILOLQJ RI KLV SUHYLRXV ((2& FRPSODLQWV DQG %3jV VXVSHQVLRQ DQG WHUPLQDWLRQRIKLVHPSOR\PHQW DQG  'HIHQGDQW%UX]LQD FRXOGQRWEHKHOGLQGLYLGXDOO\OLDEOHIRUYLRODWLRQVRI7LWOH 9,,  )RU WKH IROORZLQJ UHDVRQV ZH $)),50 WKH GLVWULFW FRXUWjV GLVPLVVDO RI 3ODLQWLIIjV 7LWOH 9,, DFWLRQ DJDLQVW 'HIHQGDQW%UX]LQDEXW5(9(56(WKHGLVWULFWFRXUWjVJUDQW RI VXPPDU\ MXGJPHQW WR 'HIHQGDQW %3 RQ 3ODLQWLIIjV UHWDOLDWLRQ FODLP DQG 5(0$1' IRU IXUWKHU SURFHHGLQJV FRQVLVWHQWZLWKWKLV&RXUWjVRSLQLRQ %$&.*5281' 3ODLQWLIIDQ$IULFDQ$PHULFDQPDOHEHJDQZRUNLQJIRU%3 RQ sXO\    DW %3jV :LQWRQ ORFDWLRQ LQ &LQFLQQDWL  /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 1R 1R /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 

LQGLFDWHVWKDW3ODLQWLIIZDVGLVFLSOLQHGRQVHYHUDORFFDVLRQV 2KLR)RUPXFKRIWKHUHOHYDQWWLPHSHULRG%UX]LQDZDV 3ODLQWLIIDOVRSUHVHQWHGHYLGHQFHWHQGLQJWRVKRZWKDWKHZDV 3ODLQWLIIjVVXSHUYLVRU'XULQJWKHFRXUVHRIKLVHPSOR\PHQW GLVFLSOLQHGLQIDFWVXVSHQGHGDQGODWHUWHUPLQDWHGIRUQRW ZLWK%33ODLQWLIIILOHGWZR((2&FRPSODLQWV3ODLQWLIIILOHG ZHDULQJKLVXQLIRUPSDQWVZKLOHRWKHUZRUNHUVZHUHQRWVR DWKLUG((2&FRPSODLQWDIWHUKLVWHUPLQDWLRQ GLVFLSOLQHG,QKLVWKLUG((2&FRPSODLQWWKHFDWDO\VWIRUWKH LQVWDQW ODZVXLW 3ODLQWLII VWDWHG WKDW mMXVW EHIRUH , ZDV VHQW 7KH)LUVW((2&&RPSODLQW KRPHRQVXVSHQVLRQ5LFKDUG>%UX]LQD@WKHVWDWLRQPDQDJHU KHDUGPHFDOOWKH((2&LQYHVWLJDWRURQP\FDVHWRWHOOKHU, %UHQGD +LQHV ZDV WKH PDQDJHU RI WKH :LQWRQ ORFDWLRQ EHLQJ>VLF@GLVFLSOLQHGIRUKDYLQJRQWKHZURQJSDQWVZKHQQR ZKHQ3ODLQWLIIVWDUWHGZRUNLQJIRU%36KRUWO\DIWHUKHEHJDQ RQHHOVHGUHVVHGOLNHPHZDVEHLQJZULWWHQXSl s$DW ZRUNLQJIRU%33ODLQWLIIUHSRUWHGWRWKH%3GLVWULFWRIILFHWKDW )URPWKHVHIDFWVDUHDVRQDEOHMXU\FRXOGLQIHUWKDW3ODLQWLIIjV KH REVHUYHG +LQHV HQJDJLQJ LQ LOOHJDO DFWLYLW\ LQFOXGLQJ ILOLQJ RI WKH ((2& FRPSODLQW SURPSWHG 'HIHQGDQW WR SXUFKDVLQJ VWROHQ JRRGV  $IWHU +LQHV ZDV WUDQVIHUUHG WR GLVFLSOLQH 3ODLQWLII IRU FRQGXFW ZKLFK PLJKW QRW QRUPDOO\ DQRWKHU%3ORFDWLRQ&KXFN%HJOH\EHFDPHWKHQHZPDQDJHU ZDUUDQW GLVFLSOLQDU\ DFWLRQ RU DW OHDVW WR WKH H[WHQW RI WKH DW WKH :LQWRQ ORFDWLRQ  6RRQ WKHUHDIWHU %HJOH\ RUDOO\ GLVFLSOLQDU\ DFWLRQ 3ODLQWLII VXIIHUHG LQFOXGLQJ 3ODLQWLIIjV WHUPLQDWHG 3ODLQWLII IRU PLVVLQJ D PDQGDWRU\ PHHWLQJ VXVSHQVLRQDQGWHUPLQDWLRQ)ROORZLQJWKHORJLFRI+DUULVRQ 3ODLQWLIIUHSRUWHGKLVWHUPLQDWLRQWRWKHGLVWULFWRIILFHDQGZDV DQG0RRUHWKHWHPSRUDOSUR[LPLW\ZKHQFRQVLGHUHGZLWKWKH UHKLUHG  3ODLQWLII ZDV WKHQ UHDVVLJQHG WR %3jV 0LWFKHOO RWKHUHYLGHQFHRIUHWDOLDWRU\FRQGXFWLVVXIILFLHQWWRFUHDWHD ORFDWLRQ DOVR LQ &LQFLQQDWL 2KLR  %HJOH\ ZDV DOVR WKH JHQXLQH LVVXH RI PDWHULDO DV WR ZKHWKHU 3ODLQWLII ZDV PDQDJHUDWWKH0LWFKHOOORFDWLRQ VXVSHQGHGDQGODWHUWHUPLQDWHGEHFDXVHKHILOHGWZR((2& FRPSODLQWV DQG FRPSODLQHG RI UDFLDOO\ GLVFULPLQDWRU\ 3ODLQWLIIWHVWLILHGWKDWKHZDVIRUFHGE\%HJOH\WRZDVKWKH WUHDWPHQW7KHUHIRUH3ODLQWLIIjV7LWOH9,,UHWDOLDWLRQFODLP IXHOSXPSVLQFROGZHDWKHUDQGWRSDLQWFXUEVZKLOHLWZDV VKRXOGKDYHVXUYLYHGVXPPDU\MXGJPHQW VQRZLQJ3ODLQWLIIDOVRWHVWLILHGWKDW%HJOH\IDLOHGWRSURYLGH 3ODLQWLIIZLWKDZLQWHUMDFNHWZKLOHKHZDVZRUNLQJRXWGRRUV $FFRUGLQJWR3ODLQWLII%HJOH\FRXOGEHKHDUGVLQJLQJDVRQJ DERXWmIOLHVLQWKHEXWWHUPLONl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j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jVZRUN:KHQYLHZHGDVDZKROH 7KH6HFRQG((2&&RPSODLQW WKHVHVHSDUDWHLQFLGHQWVVXSSRUWWKHMXU\jVILQGLQJWKDW GHIHQGDQWVUHWDOLDWHGDJDLQVWSODLQWLII 3ODLQWLIIWHVWLILHGWKDWDIWHUWKHILUVW((2&FRPSODLQWZDV ZLWKGUDZQKHFRQWLQXHGWREHWKHWDUJHWRIUHWDOLDWRU\DQG ,G FLWDWLRQRPLWWHG  GLVFULPLQDWRU\WUHDWPHQW$VDUHVXOWRQ2FWREHU  3ODLQWLIIILOHGDVHFRQG((2&FRPSODLQWLQZKLFKKHDOOHJHG ,QWKHFDVHDWEDUDVLQ0RRUHDQG+DUULVRQ3ODLQWLIIKDV UHWDOLDWLRQIRUILOLQJWKHILUVWFRPSODLQW SUHVHQWHG VXIILFLHQW HYLGHQFH WR FUHDWH D JHQXLQH LVVXH RI PDWHULDO IDFW DV WR ZKHWKHU 3ODLQWLIIj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jVHPSOR\PHQW ,QDGGLWLRQWRWKHWHPSRUDOSUR[LPLW\EHWZHHQWKHILOLQJRI WKH FRPSODLQWV DQG 3ODLQWLIIjV VXVSHQVLRQ DQG WHUPLQDWLRQ 7RVXSSRUWKLVFODLP3ODLQWLIIVXEPLWWHGDQXQVZRUQOHWWHU WKHUHLVDGGLWLRQDOHYLGHQFHVXJJHVWLQJWKDW 3ODLQWLIIZDVD IURPDIHOORZHPSOR\HH(O\VH%ODNHO\ZKRVWDWHGWKDWVKH WDUJHWRIUHWDOLDWLRQ3ODLQWLIISUHVHQWHGWKHDIILGDYLWRIKLV ZDVWROGWKDWLIVKHZDQWHGWRNHHSKHUMREVKHVKRXOGILOHD IHOORZHPSOR\HH6KLHOGVWKDWUHFRXQWHGPHHWLQJVZKHUHVKH KDUDVVPHQW FODLP DJDLQVW 3ODLQWLII ZLWK WKH SROLFH  ,Q DQGRWKHUZRUNHUVZHUHWROGWRPDNHIDOVHFODLPVRIWKHIWDQG DGGLWLRQ3ODLQWLIIVXEPLWWHGWKHDIILGDYLWRI$QJHOD6KLHOGV KDUDVVPHQWDJDLQVW3ODLQWLIIRUORVHWKHLUMREV7KHUHFRUG ZKR DYHUUHG WKDW 3ODLQWLII ZDV WUHDWHG LQ D GLVFULPLQDWRU\ PDQQHU EHFDXVH RI KLV UDFH  7KH DIILGDYLW DOVR VWDWHG WKDW 6KLHOGV ZDV mSUHVHQW GXULQJ FRQYHUVDWLRQV ZKHUH WKH  VXSHUYLVRU\SHUVRQQHORIWKH'HIHQGDQW%3GLUHFWHGPHDQG 7KH GLVWULFW FRXUW GLVFRXQWHG WKH 6KLHOGV DIILGDYLW EHFDXVH WKH

VHYHUDORIP\IHOORZHPSOR\HHVWRPDNHIDOVHDFFXVDWLRQVDQG DIILGDYLW GLG QRW VWDWH ZKHQ WKH WKUHDWV PHQWLRQHG WKHUHLQ RFFXUUHG 7KH GLVWULFW FRXUW WKHUHIRUH FRQFOXGHG WKDW WKHUH ZDV QR EDVLV WR LQIHU WKDW FRPSODLQWV DJDLQVW 5REHUW /LWWOH VR WKDW %3 FRXOG XVH WKH HPSOR\HHV ZHUH WKUHDWHQHG ZLWK ORVV RI WKHLU MREV XQOHVV WKH\ ILOHG IDOVH VDPH DV MXVWLILFDWLRQ IRU WHUPLQDWLQJ 5REHUW /LWWOH IURP DOOHJDWLRQV DJDLQVW 3ODLQWLIIV LQ UHWDOLDWLRQ IRU 3ODLQWLIIjV ILOLQJ RI WKH WZR

HPSOR\PHQWl s$DW 6KLHOGVDQGRWKHUHPSOR\HHV ((2& FKDUJHV :H GLVDJUHH ZLWK WKH GLVWULFW FRXUWjV FRQFOXVLRQ :KLOH

ZHUHWROGWKDWmLIZHGLGQRWPDNHWKHFODLPVDQGDOOHJDWLRQV WKH 6KLHOGV DIILGDYLW GLG QRW JLYH WKH GDWH RQ ZKLFK WKH FRQYHUVDWLRQV ZLWK

DJDLQVW5REHUW/LWWOHZHZRXOGEHILUHGRUµOHWJRjIURPRXU %3 PDQDJHPHQW RFFXUUHG GUDZLQJ DOO UHDVRQDEOH LQIHUHQFHV LQ 3ODLQWLIIjV

HPSOR\PHQW SRVLWLRQVl  s$ DW    6KLHOGV DQG RWKHU IDYRU DV ZH PXVW ZH FRQFOXGH WKDW WKH UHFRUG SDUWLFXODUO\ 3ODLQWLIIjV ((2& FRPSODLQW DQG KLV GHSRVLWLRQ WHVWLPRQ\ VXSSRUWV D FRQFOXVLRQ WKDW WKH FRQYHUVDWLRQV ZLWK %3 PDQDJHPHQW RFFXUUHG DIWHU 3ODLQWLII ILOHG WKH  /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 1R 1R /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 

)G DW   ,Q +DUULVRQ WKH SODLQWLII ZDV VXVSHQGHG LQ HPSOR\HHV WKHUHIRUH mGLG OLH RQ DQG PDNH IDOVH FODLPV RI $XJXVW  WKHSODLQWLIIILOHGDQ((2&FRPSODLQWDIWHUKLV KDUDVVPHQWDQGWKHIWDJDLQVW5REHUW/LWWOHl s$DW VXVSHQVLRQDQGZDVWKHUHDIWHUGLVFKDUJHGLQ1RYHPEHU  ,G7KLV&RXUWKHOGWKDWWHPSRUDOSUR[LPLW\LQFRPELQDWLRQ 7KH7KLUG((2&&RPSODLQWDQG3ODLQWLIIjV/DZVXLW ZLWK WKH HYLGHQFH RI UHWDOLDWRU\ FRQGXFW ZDV VXIILFLHQW WR HVWDEOLVKDFDXVDOFRQQHFWLRQEHWZHHQWKHSURWHFWHGDFWLYLW\ :KLOH WKH VHFRQG ((2& LQYHVWLJDWLRQ ZDV SHQGLQJ DQGWKHDGYHUVHHPSOR\PHQWDFWLRQ7KH&RXUWQRWHG 3ODLQWLII ZDV VXVSHQGHG RQ sDQXDU\    DQG ODWHU WHUPLQDWHGRQsDQXDU\ IRULQVXERUGLQDWLRQ3ODLQWLII >D@WPRVWRQH\HDUDQGWKUHHPRQWKVHODSVHGEHWZHHQKLV ZDVWHUPLQDWHGEHFDXVHKHZDVRXWRIXQLIRUPDQGUHIXVHGWR ILOLQJRIDFKDUJHDQGKLVWHUPLQDWLRQ,QDGGLWLRQWKH ZHDU KLV XQLIRUP DIWHU EHLQJ DGPRQLVKHG E\ 'HIHQGDQW HYLGHQFHVKRZHGWKDWWKUHHHPSOR\HHVIHDUHGUHWDOLDWLRQ %UX]LQD  3ODLQWLII UHVSRQGV WKDW ZKLOH KH ZDV EHLQJ EHFDXVHWKH\WHVWLILHGDW0U+DUULVRQjVKHDULQJDQGWKDW DGPRQLVKHGIRUIDLOLQJWRZHDUKLVXQLIRUPRWKHUHPSOR\HHV >WKHVXSHUYLVRU@PDGHUHSHDWHGFRPPHQWVWKDWVXJJHVWHG ZKRGLGQRWZHDUWKHLUXQLIRUPVZHUHQRWVLPLODUO\WUHDWHG KH ZRXOG QRW KHVLWDWH WR UXQ HPSOR\HHV RXW RI KLV 3ODLQWLIIjVWHUPLQDWLRQOHGKLPWRILOHDWKLUG((2&FRPSODLQW GHSDUWPHQW  7KLV HYLGHQFH WDNHQ WRJHWKHU ZLWK WKH DOOHJLQJUHWDOLDWLRQ WLPHWDEOH RI 0U +DUULVRQjV ((2& FKDUJH DQG WHUPLQDWLRQFRQYLQFHVXVWKDWWKHSODLQWLIIHVWDEOLVKHGD ,QWKHWKLUG((2&&RPSODLQW3ODLQWLIIDOOHJHGWKDWKHKDG SULPDIDFLHFDVHRIUHWDOLDWLRQ EHHQmUHWDOLDWHGDJDLQVWLQYLRODWLRQRI7LWOH9,,EHFDXVH,KDG ILOHG WZR SUHYLRXV FKDUJHV RI GLVFULPLQDWLRQl DJDLQVW %3 0RUHLPSRUWDQWKRZHYHULVWKHIDFWWKDWVWXG\RIWKH s$DW +HIXUWKHUVWDWHG UHFRUGLQWKLVFDVHUHYHDOVDQDWPRVSKHUHLQZKLFKWKH SODLQWLIIj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s$DW FRPSODLQW)GDW,Q0RRUHWKH&RXUWVWDWHGWKDW m>W@KH FDXVDO FRQQHFWLRQ EHWZHHQ WKH DGYHUVH HPSOR\PHQW 3ODLQWLIIUHTXHVWHGDQGUHFHLYHGDULJKWWRVXHOHWWHUIURP DFWLRQDQGWKHSURWHFWHGDFWLYLW\KHUHWKHILOLQJRIDFRPSODLQW WKH((2&RQ6HSWHPEHU  7KHULJKWWRVXHOHWWHU ZLWKWKH((2&PD\EHHVWDEOLVKHGE\GHPRQVWUDWLQJWKDWWKH RQO\FRYHUV3ODLQWLIIjVWKLUG((2&FRPSODLQW,WGRHVQRWDV DGYHUVH DFWLRQ ZDV WDNHQ VKRUWO\ DIWHU SODLQWLII ILOHG WKH 3ODLQWLII FRQWHQGV FRYHU ERWK WKH VHFRQG DQG WKLUG FRPSODLQWDQGE\VKRZLQJWKDWKHZDVWUHDWHGGLIIHUHQWO\IURP FRPSODLQWV7KHWKLUGFRPSODLQWKRZHYHUFKDUJHVWKDW%3 RWKHUHPSOR\HHVl,G7KH&RXUWIXUWKHUUHDVRQHGWKDW UHWDOLDWHGDJDLQVW3ODLQWLIIEHFDXVHKHKDGILOHGWZRSUHYLRXV ((2&FRPSODLQWV  /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 1R 1R /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 

3ODLQWLIIILOHGWKHLQVWDQWDFWLRQLQWKH8QLWHG6WDWHV'LVWULFW 3ODLQWLIIjVDIILGDYLWVWDWHVWKDWKHZDVGLVFLSOLQHGIRUIDLOLQJ &RXUW IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR RQ 'HFHPEHU  WRZHDUKLVXQLIRUPDIWHUILOLQJKLVVHFRQG((2&FRPSODLQW    +H ILOHG DQ DPHQGHG FRPSODLQW RQ 0D\     ZKLOHRWKHUHPSOR\HHVZKROLNHZLVHZHUHQRWZHDULQJWKHLU 3ODLQWLIIjV DPHQGHG FRPSODLQW DOOHJHG WKDW LQ YLRODWLRQ RI XQLIRUPVZHUHQRWGLVFLSOLQHG3ODLQWLIIjVDIILGDYLWDOVRVWDWHV 7LWOH9,,86&†  D 86&† D DQGVWDWH WKDWKHZDVWROGE\6KLHOGVDQGRWKHUIHOORZHPSOR\HHVWKDW ODZ'HIHQGDQWV   HQJDJHGLQFRQGXFWWKDWYLRODWHGKLVFLYLO WKH\ WKH IHOORZ HPSOR\HHV  ZHUH LQVWUXFWHG WR PDNH IDOVH ULJKWVXQGHUWKH8QLWHG6WDWHV&RQVWLWXWLRQDQGIHGHUDODQG FODLPV RI WKHIW DQG KDUDVVPHQW DJDLQVW 3ODLQWLII RU EH VWDWH ODZ   HQJDJHG LQ LQWHQWLRQDO HPSOR\PHQW WHUPLQDWHG GLVFULPLQDWLRQ  GHQLHG3ODLQWLIISXEOLFDFFRPPRGDWLRQVDV D FRQVXPHU   HQJDJHG LQ GLVFULPLQDWRU\ HPSOR\PHQW 3ODLQWLIIjVILUVW((2&FRPSODLQWZDVILOHGRQ)HEUXDU\ SUDFWLFHV ZKLFK UHVXOWHG LQ VHULRXV HPRWLRQDO GLVWUHVV WR  7KHVHFRQGFRPSODLQWZDVILOHGRQ2FWREHU  3ODLQWLII   SXEOLVKHG IDOVH UHSRUWV WKDW 3ODLQWLII ZDV 7KHEDVLVRI3ODLQWLIIjVVHFRQG((2&FRPSODLQWZDVWKHW\SH KDUDVVLQJIHOORZHPSOR\HHVLQYLRODWLRQRIKLVHPSOR\PHQW RIFRQGXFWGHVFULEHGLQ6KLHOGVjDIILGDYLW3ODLQWLIIVWDWHGLQ GXWLHV DQG   HQJDJHG LQ GLVFULPLQDWRU\ WUHDWPHQW RI KLV ((2& FRPSODLQW DQG LQ KLV GHSRVLWLRQ WKDW WKRVH 3ODLQWLII DIWHU KH LQIRUPHG %3 PDQDJHPHQW RI FULPLQDO RFFDVLRQV RQ ZKLFK KH ZDV IDOVHO\ DFFXVHG RI WKHIW DQG DFWLYLW\E\%3VXSHUYLVRU\HPSOR\HHV KDUDVVPHQW RFFXUUHG LQ $XJXVW DQG 6HSWHPEHU RI   3ODLQWLIIZDVVXVSHQGHGRQsDQXDU\  DQGWHUPLQDWHGRQ 'HIHQGDQWVILOHGDPRWLRQIRUVXPPDU\MXGJPHQWRQHDFK sDQXDU\ DIWHUILOLQJWKHVHFRQG((2&FRPSODLQW RI 3ODLQWLIIjV FODLPV  3ODLQWLII ILOHG D PHPRUDQGXP LQ RSSRVLWLRQWRWKHPRWLRQIRUVXPPDU\MXGJPHQWVXSSRUWHGE\ :KLOHLWLVWUXHWKDWWHPSRUDOSUR[LPLW\DORQHLVLQVXIILFLHQW KLVDIILGDYLWWKHDIILGDYLWRIIHOORZHPSOR\HH$QJHOD6KLHOG WR HVWDEOLVK D FDXVDO FRQQHFWLRQ IRU D UHWDOLDWLRQ FODLP DQGWKHXQVZRUQOHWWHURI(O\VH%ODNHO\ 1JX\HQ Y &LW\ RI &OHYHODQG   )G    WK &LU   WKHUH DUH FLUFXPVWDQFHV ZKHUH WHPSRUDO SUR[LPLW\ 8SRQ FRQVLGHUDWLRQ RI WKH PRWLRQ EHIRUH LW WKH GLVWULFW FRQVLGHUHGZLWKRWKHUHYLGHQFHRIUHWDOLDWRU\FRQGXFWZRXOG FRXUWHQWHUHGVXPPDU\MXGJPHQWLQIDYRURI'HIHQGDQWVDVWR EH VXIILFLHQW WR HVWDEOLVK D FDXVDO FRQQHFWLRQ  6HH HJ HDFKRI3ODLQWLIIjVIHGHUDOFODLPV7KHGLVWULFWFRXUWGHFOLQHG 0RRUHY.8.$:HOGLQJ6\V)G WK&LU WRH[HUFLVHVXSSOHPHQWDOMXULVGLFWLRQRYHU3ODLQWLIIjVVWDWHODZ +DUULVRQY0HWUR*RYjWRI1DVKYLOOH 'DYLGVRQ&RXQW\ FODLPV LQ WKH HYHQW WKDW WKHUH ZDV QR GLYHUVLW\ MXULVGLFWLRQ 7HQQ)G WK&LU  7KLVFDVHSUHVHQWVMXVW RYHUWKHFDVH LQWKHDOWHUQDWLYHWKHGLVWULFWFRXUWKHOGWKDW VXFKDFLUFXPVWDQFHZKHUHWKHWHPSRUDOSUR[LPLW\FRQVLGHUHG 3ODLQWLIIjVVWDWHODZFODLPVZHUHZLWKRXWPHULW7KHGLVWULFW ZLWK RWKHU HYLGHQFH RI UHWDOLDWRU\ FRQGXFW LV VXIILFLHQW WR FRXUWGLVPLVVHG3ODLQWLIIjVIHGHUDOFODLPIRUUHWDOLDWLRQDQG FUHDWHDJHQXLQHLVVXHRIPDWHULDOIDFWDVWRWKHH[LVWHQFHRID GLVFULPLQDWRU\GLVFKDUJHZLWKSUHMXGLFH3ODLQWLIIjVFODLPVIRU FDXVDOFRQQHFWLRQEHWZHHQ3ODLQWLIIjVILOLQJRIWKHWZR((2& UDFHGLVFULPLQDWLRQXQGHU7LWOH9,,DQGKLVVWDWHODZFODLPV FRPSODLQWV DQG KLV VXVSHQVLRQ DQG WHUPLQDWLRQ DV ZHOO DV ZHUHGLVPLVVHGZLWKRXWSUHMXGLFH RWKHUDOOHJHGUHWDOLDWRU\FRQGXFW 7KH GLVWULFW FRXUW GLVPLVVHG 3ODLQWLIIjV 7LWOH 9,, FODLPV +DUULVRQ LV LQVWUXFWLYH RQ WKLV LVVXH  ,Q WKDW FDVH WKH DJDLQVW 'HIHQGDQW %UX]LQD EHFDXVH LW FRQFOXGHG WKDW SODLQWLIIKDGZRQRQHODZVXLWDJDLQVWWKHHPSOR\HUKDGILOHG 'HIHQGDQW%UX]LQDFRXOGQRWEHKHOGLQGLYLGXDOO\OLDEOHXQGHU IRXU FKDUJHV RI GLVFULPLQDWLRQ ZLWK WKH ((2& DQG KDG 7LWOH9,,7KHGLVWULFWFRXUWGLVPLVVHG3ODLQWLIIjV7LWOH9,, ZULWWHQDPHPRUDQGXPFRPSODLQLQJRIKLVKDUDVVPHQWWRWKH UHWDOLDWLRQFODLPDJDLQVW'HIHQGDQW%3EHFDXVHLWGHWHUPLQHG KDUDVVLQJVXSHUYLVRUDQGWKHGHSDUWPHQWKHDG+DUULVRQ  /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 1R 1R /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 

SURWHFWHGDFWLYLW\DQGWKHDGYHUVHHPSOR\PHQWDFWLRQ0RUULV WKDW 3ODLQWLII KDG IDLOHG WR HVWDEOLVK D FDXVDO FRQQHFWLRQ Y2OGKDP&RXQW\)LVFDO&RXUW)G  WK&LU EHWZHHQ KLV DOOHJHG SURWHFWHG DFWLYLW\ DQG WKH DGYHUVH   HPSOR\PHQW DFWLRQ KH VXIIHUHG  )LQDOO\ WKH GLVWULFW FRXUW GLVPLVVHG 3ODLQWLIIjV 7LWOH 9,, UDFH GLVFULPLQDWLRQ FODLP 7KHGLVWULFWFRXUWFRQFOXGHGDQG'HIHQGDQW%3FRQFHGHV EHFDXVH WKH GLVWULFW FRXUW GHWHUPLQHG WKDW 3ODLQWLII KDG QRW WKDW3ODLQWLIIPHWWKHILUVWWKUHHHOHPHQWVRIDSULPDIDFLHFDVH H[KDXVWHGKLVDGPLQLVWUDWLYHUHPHGLHV RI UHWDOLDWLRQ  7KH TXHVWLRQ EHIRUH WKLV &RXUW LV ZKHWKHU 3ODLQWLII SUHVHQWHG VXIILFLHQW HYLGHQFH WR FUHDWH D JHQXLQH 3ODLQWLIIILOHGDWLPHO\QRWLFHRIDSSHDORQsDQXDU\ LVVXH RI PDWHULDO IDFW DV WR WKH H[LVWHQFH RI D FDXVDO FRQQHFWLRQ EHWZHHQ 3ODLQWLIIjV ILOLQJ RI WKH WZR SUHYLRXV 2QDSSHDO3ODLQWLIIGRHVQRWFKDOOHQJHWKHGLVWULFWFRXUWjV ((2&FRPSODLQWVDQGKLVVXVSHQVLRQDQGWHUPLQDWLRQ GHWHUPLQDWLRQWKDWLWGLGQRWKDYHMXULVGLFWLRQRYHU3ODLQWLIIjV UDFH GLVFULPLQDWLRQ FODLP EHFDXVH KH IDLOHG WR H[KDXVW KLV 7RVXSSRUWKLVFODLP3ODLQWLIISUHVHQWHGKLVDIILGDYLWDQG DGPLQLVWUDWLYHUHPHGLHV,QDGGLWLRQ3ODLQWLIIGRHVQRWDOOHJH WKHDIILGDYLWRI$QJHOD6KLHOGVDIHOORZHPSOR\HH6KLHOGjV WKDW WKH GLVWULFW FRXUW HUUHG LQ HLWKHU GHFOLQLQJ WR H[HUFLVH DIILGDYLWSURYLGHGWKDWVKHZDVmSUHVHQWGXULQJFRQYHUVDWLRQV VXSSOHPHQWDO MXULVGLFWLRQ RYHU KLV VWDWH ODZ FODLPV RU LWV ZKHUHWKHVXSHUYLVRU\SHUVRQQHORIWKH'HIHQGDQW%3GLUHFWHG FRQFOXVLRQWKDWWKRVHFODLPVZHUHZLWKRXWPHULW3ODLQWLIIKDV PH DQG VHYHUDO RI P\ IHOORZ HPSOR\HHV WR PDNH IDOVH WKHUHIRUHZDLYHGDQ\FKDOOHQJHWRWKHGLVWULFWFRXUWjVGHFLVLRQ DFFXVDWLRQVDQGFRPSODLQWVDJDLQVW5REHUW/LWWOHVRWKDW%3 DVWRWKHVHLVVXHV HUURUVFRQFHUQLQJWKHVHFODLPVDUHWKXVQRW FRXOG XVH WKH VDPH DV MXVWLILFDWLRQ IRU WHUPLQDWLQJ 5REHUW SURSHUO\EHIRUHWKH&RXUW6HH.RFVLVY0XOWL&DUH0JPW /LWWOHIURPHPSOR\PHQWl s$DW 6KLHOGVDQGRWKHU ,QF )G WK&LU  %LFNHOY.RUHDQ$LU HPSOR\HHVZHUHWROGWKDWmLIZHGLGQRWPDNHWKHFODLPVDQG /LQHV&R )G WK&LU   DOOHJDWLRQVDJDLQVW5REHUW/LWWOHZHZRXOGEHILUHGRUµOHWJRj IURPRXUHPSOR\PHQWSRVLWLRQVl s$DW 6KLHOGVDQG 67$1'$5'2)5(9,(: RWKHUHPSOR\HHVWKHUHIRUHmGLGOLHRQDQGPDNHIDOVHFODLPV RIKDUDVVPHQWDQGWKHIWDJDLQVW5REHUW/LWWOHl s$DW :H UHYLHZ GH QRYR WKH GLVWULFW FRXUWjV RUGHU JUDQWLQJ VXPPDU\ MXGJPHQW WR 'HIHQGDQWV  sRKQVRQ Y (FRQ 'HY &RUS  )G    WK &LU    $ JUDQW RI VXPPDU\MXGJPHQWZLOOEHXSKHOGRQO\LIWKHUHLVQRJHQXLQH LVVXH RI PDWHULDO IDFW DQG WKH PRYLQJ SDUW\ LV HQWLWOHG WR MXGJPHQWDVDPDWWHURIODZ)HG5&LY3 F :KHQ  3ODLQWLII DOVR VXEPLWWHG D OHWWHU IURP DQRWKHU IRUPHU HPSOR\HH (O\VH UHYLHZLQJDPRWLRQIRUVXPPDU\MXGJPHQWWKHFRXUWPXVW %ODNHO\ ZKR VXEVWDQWLDWHG 3ODLQWLIIjV FODLP WKDW %3 PDQDJHPHQW XUJHG YLHZ WKH HYLGHQFH DQG GUDZ DOO UHDVRQDEOH LQIHUHQFHV RWKHU HPSOR\HHV WR ILOH IDOVH FKDUJHV DJDLQVW 3ODLQWLII 7KH GLVWULFW FRXUW WKHUHIURPLQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQPRYLQJSDUW\ GLVUHJDUGHG WKLV OHWWHU KRZHYHU EHFDXVH LW ZDV DQ XQVZRUQ VWDWHPHQW 3ODLQWLII QRZ DUJXHV WKDW WKH GLVWULFW FRXUW HUUHG LQ VR GRLQJ :H :LOOLDPV Y ,QWjO 3DSHU &R  )G   WK &LU KRZHYHU FRQFOXGH WKDW WKH GLVWULFW FRXUW SURSHUO\ GLVUHJDUGHG WKH OHWWHU RI  ,IWKHPRYLQJSDUW\PHHWVLWVEXUGHQRISURGXFWLRQ (O\VH %ODNHO\ 6HH 3ROORFN Y 3ROORFN   )G   Q WK &LU WKHQRQPRYLQJSDUW\PXVWSURGXFHPRUHWKDQDPHUHVFLQWLOOD   FLWLQJ 'RH Y (OOLRWW 7UDYHO 7RXUV ,QF   )G   RI HYLGHQFH WR VXUYLYH VXPPDU\ MXGJPHQW  $QGHUVRQ Y WK &LU   mD FRXUW PD\ QRW FRQVLGHU XQVZRUQ VWDWHPHQWV ZKHQ /LEHUW\/REE\,QF86   ,QWKLVFDVH UXOLQJ RQ D PRWLRQ IRU VXPPDU\ MXGJPHQWl  0RUHRYHU WKH OHWWHU GLG QRW TXDOLI\ IRU WKH VWDWXWRU\ H[FHSWLRQ WR WKLV UXOH XQGHU  86& †  3ODLQWLIIPXVWSURGXFHHYLGHQFHIURPZKLFKWKHMXU\FRXOG %ODNHO\jV OHWWHU ZDV QRW JLYHQ XQGHU WKH SHQDOW\ RI SHUMXU\ FHUWLILHG DV UHDVRQDEO\ILQGIRUKLP,G WUXH DQG FRUUHFW GDWHG DQG VLJQHG  /LWWOHY%3([SORUDWLRQ 2LO&RHWDO 1R 1R /LWWOHY%3([SORUDWLRQ 2LO&RHWDO

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mDQ\ SHUVRQ HPSOR\LQJ IRXU RU PRUH KHKDGQRWSUHVHQWHGVXIILFLHQWHYLGHQFHWRHVWDEOLVKDFDXVDO SHUVRQVZLWKLQWKHVWDWHDQGDQ\SHUVRQDFWLQJGLUHFWO\RU FRQQHFWLRQEHWZHHQKLVSURWHFWHGDFWLYLW\WKHILOLQJRIWKH LQGLUHFWO\LQWKHLQWHUHVWRIDQHPSOR\HUl,GDW FLWDWLRQ WZRSUHYLRXV((2&FRPSODLQWVoDQGWKHDGYHUVHHPSOR\PHQW DQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG  HPSKDVLVLQRULJLQDO  DFWLRQKHVXIIHUHGVXVSHQVLRQDQGWHUPLQDWLRQ $V WKH *HQDUR FRXUW DFNQRZOHGJHG 7LWOH 9,, GRHV QRW FRQWDLQVXFKODQJXDJHDQGWKHUHIRUHGRHVQRWOHQGLWVHOIWRWKH &RQVLVWHQW ZLWK WKH FOHDU SUHFHGHQW RI WKLV &LUFXLW ZH LQWHUSUHWDWLRQ3ODLQWLIIXUJHVWKLV&RXUWWRDGRSW0RUHRYHU XSKROGWKHGLVWULFWFRXUWjVFRQFOXVLRQWKDW'HIHQGDQW%UX]LQD ZHDUHERXQGE\6L[WK&LUFXLWSUHFHGHQWXQOHVVLWLVRYHUUXOHG FDQQRWEHKHOGOLDEOHXQGHU7LWOH9,,:HKRZHYHUUHYHUVH E\ HLWKHU RXU FRXUW VLWWLQJ HQ EDQF RU WKH 6XSUHPH &RXUW WKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWWR'HIHQGDQW 7XUNHUY2KLR'HSjWRI5HKDE &RUU)G %3RQ3ODLQWLIIjVUHWDOLDWLRQFODLP$UHYLHZRIWKHUHFRUG WK&LU   LQGLFDWHVWKDW3ODLQWLIISURGXFHGVXIILFLHQWHYLGHQFHWRFUHDWH D JHQXLQH LVVXH RI PDWHULDO IDFW DV WR ZKHWKHU WKHUH ZDV D ,, FDXVDOFRQQHFWLRQEHWZHHQKLVILOLQJRIWZR((2&FRPSODLQWV DQGKLVVXVSHQVLRQDQGWHUPLQDWLRQ 3ODLQWLII DOVR DUJXHV WKDW KLV 7LWOH 9,, UHWDOLDWLRQ FODLP DJDLQVW 'HIHQGDQW %3 VKRXOG KDYH VXUYLYHG VXPPDU\ , MXGJPHQW  :H DJUHH  7KH UHFRUG UHYHDOV WKDW 3ODLQWLII SUHVHQWHG VXIILFLHQW HYLGHQFH WR FUHDWH D JHQXLQH LVVXH RI :H ILUVW DGGUHVV 3ODLQWLIIjV 7LWOH 9,, UHWDOLDWLRQ FODLP PDWHULDO IDFW DV WR HDFK RI WKH HOHPHQWV RI D SULPD IDFLH DJDLQVW 'HIHQGDQW %UX]LQD  :H FRQFOXGH WKDW 3ODLQWLIIjV UHWDOLDWLRQFODLP FODLP XQGHU 7LWOH 9,, FDQQRW OLH EHFDXVH %UX]LQD ZDV QRW 3ODLQWLIIj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jV VXSHUYLVRU DQG QRW KLV HPSOR\HU%UX]LQDFDQQRWEHKHOGLQGLYLGXDOO\OLDEOHXQGHU 7LWOH9,, FDSDFLW\ XSRQ D VKRZLQJ WKDW KH RU VKH FRXOG EH FRQVLGHUHG WKH mDOWHU HJRl RI WKH HPSOR\HU 7KLV &RXUW KDV QRW FOHDUO\ DQG GHILQLWLYHO\ UXOHG RQ WKLV LVVXH DQG ZH QHHG QRW GR VR WRGD\ 8QGHU WKH VWDQGDUGV VHW IRUWK LQ RWKHU FLUFXLWV WKDW DOORZ VXSHUYLVRUV WR EH VXHG LQ WKHLU RIILFLDO FDSDFLW\

 3ODLQWLII KDV IDLOHG WR PDNH D VKRZLQJ WKDW %UX]LQD KDG VLJQLILFDQW FRQWURO :KLOH WKH ODZ LV FOHDU WKDW D VXSHUYLVRU FDQQRW EH KHOG OLDEOH LQ KLV RYHU 3ODLQWLIIjV KLULQJ ILULQJ DQG ZRUNLQJ FRQGLWLRQV VXFK WKDW KH FRXOG RU KHU LQGLYLGXDO FDSDFLW\ IRU YLRODWLRQV RI 7LWOH 9,, WKHUH LV VXSSRUW IRU EH FRQVLGHUHG WKH mDOWHU HJRl RI %3 6HH HJ 6DXHUV Y 6DOW /DNH WKH SURSRVLWLRQ WKDW D VXSHUYLVRU PD\ EH KHOG OLDEOH LQ KLV RU KHU RIILFLDO &RXQW\  )G   WK &LU