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$;,080 +20( +($/7+ ; &$5( ,1&  3ODLQWLII$SSHOODQW   1R  Y !   '211$ ( 6+$/$/$DV  6HFUHWDU\RIWKH8QLWHG6WDWHV  'HSDUWPHQWRI+HDOWKDQG  +XPDQ6HUYLFHV   'HIHQGDQW$SSHOOHH     1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH 1R  n:LOOLDPs+D\QHVsU'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG 1RYHPEHU %HIRUH 0(55,776,/(5DQG'$8*+75(<&LUFXLW sXGJHV

  0D[LPXP+RPH+HDOWK&DUH,QFY 1R 6KDODOD6HFUHWDU\RI++6

BBBBBBBBBBBBBBBBB &2816(/ $5*8(' sRKQ3.RQYDOLQND*5$17.219$/,1'$  +$55,621 &KDWWDQRRJD 7HQQHVVHH IRU $SSHOODQW +RZDUG + /HZLV '(3$570(17 2) +($/7+ $1' +80$1 6(59,&(6 2)),&( 2) 7+( *(1(5$/ &2816(/ $WODQWD *HRUJLD IRU $SSHOOHH  21 %5,() sRKQ 3 .RQYDOLQGD sDPHV 6 0F'HDUPDQ *5$17 .219$/,1.$ +$55,621&KDWWDQRRJD7HQQHVVHHIRU $SSHOODQW  0LFKDHO / 5RGHQ $66,67$17 81,7(' 67$7(6$77251(<IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 0(55,77 &LUFXLW sXGJH  7KLV FDVH DULVHV XQGHU 7LWOH ;9,,,RIWKH6RFLDO6HFXULW\ $FW WKHm0HGLFDUH$FWl  86& †   HW VHT DV D FKDOOHQJH WR WKH GHQLDO RI UHLPEXUVHPHQWRIFRVWVIRUSURYLGLQJKHDOWKFDUHWR0HGLFDUH SDWLHQWV  3ODLQWLII 0D[LPXP +RPH +HDOWKFDUH ,QF m0D[LPXPl DSSHDOVWKHGLVWULFWFRXUWjVMXGJPHQWDIILUPLQJ WKH GHQLDO RI 0HGLFDUH UHLPEXUVHPHQWV E\ 'HSDUWPHQW RI +HDOWK DQG +XPDQ 6HUYLFHV 6HFUHWDU\ 'RQQD 6KDODOD m6HFUHWDU\lRUm'HIHQGDQWl LQWKHDPRXQWVRIDQG   IRU WKH ILVFDO \HDUV   DQG   UHVSHFWLYHO\ 0D[LPXPDUJXHVWKDWWKHGHQLDORIUHLPEXUVHPHQWLVDUELWUDU\ DQG FDSULFLRXV RU LQ WKH DOWHUQDWLYH LV QRW VXSSRUWHG E\ VXEVWDQWLDOHYLGHQFH%HFDXVHWKH6HFUHWDU\KDVLQIRUPDOO\ LPSRVHG RQ 0HGLFDUH SURYLGHUV D mFRPSHWLWLYH ELGGLQJl UHTXLUHPHQW QRW SUHYLRXVO\ PDGH D SDUW RI 0HGLFDUH UHJXODWLRQVWKHKROGLQJRIWKHGLVWULFWFRXUWLV5(9(56(' 1R 0D[LPXP+RPH+HDOWK&DUH,QFY  6KDODOD6HFUHWDU\RI++6

)DFWV 0D[LPXP LV D FHUWLILHG KRPH KHDOWK FDUH DJHQF\ WKDW SURYLGHV PDQDJHPHQW FRQVXOWDQW VHUYLFHV WR FRPSDQLHV DGPLQLVWHULQJPHGLFDOFDUHWR0HGLFDUHSDWLHQWV,Q  0D[LPXP HQWHUHG LQWR D FRQWUDFW ZLWK 'LYHUVLILHG +HDOWK 0DQDJHPHQW &RPSDQ\ m'LYHUVLILHGl  WR SURYLGH PDQDJHPHQW VHUYLFHV  )RU WKH ILVFDO \HDUV LQ TXHVWLRQ 0D[LPXPFKDUJHGLQ DQGLQ IRU HDFKYLVLWE\'LYHUVLILHGWRD0HGLFDUHSDWLHQW8QGHUWKH 0HGLFDUH $FW WKH 6HFUHWDU\ FRQWUDFWV ZLWK D ILVFDO LQWHUPHGLDU\ WKH mLQWHUPHGLDU\l  WR SURFHVV DQG DXGLW UHLPEXUVHPHQWV WR SURYLGHUV VXFK DV 0D[LPXP  6HH  86&†† K RR D  $ L &)5††  D      ,Q WKLV FDVH %OXH &URVV DQG %OXH 6KLHOG RI 6RXWK &DUROLQD ZDV WKH LQWHUPHGLDU\  $IWHU UHYLHZLQJ0D[LPXPjVIHHVWKHLQWHUPHGLDU\GHWHUPLQHGWKDW WKHDYHUDJHSHUYLVLWUDWHZDV IRUFRPSDUDEOHFRPSDQLHV GXULQJ ERWK   DQG    $V D UHVXOW WKH LQWHUPHGLDU\ IRXQGWKDW0D[LPXPjVIHHVZHUHVXEVWDQWLDOO\RXWRIOLQH ZLWKPDUNHWYDOXHV%HFDXVHWKH0HGLFDUH$FWUHTXLUHVWKDW FRVWV QRW EH VXEVWDQWLDOO\ RXWRIOLQH IURP FRVWV RI FRPSDUDEOHLQVWLWXWLRQVWKH6HFUHWDU\GHQLHGUHLPEXUVHPHQW RI0D[LPXPjVIHHVIRUDPRXQWVDERYH SHUYLVLW6HH &)5† F  DUWLFXODWLQJWKHVXEVWDQWLDOO\RXWRIOLQH VWDQGDUG 

  &)5 †  F  SURYLGHV

7KH FRVWV RI SURYLGHUVj VHUYLFHV YDU\ IURP RQH SURYLGHU WR DQRWKHU DQG WKH YDULDWLRQV JHQHUDOO\ UHIOHFW GLIIHUHQFHV LQ VFRSH RI VHUYLFHV DQG LQWHQVLW\ RI FDUH 7KH SURYLVLRQ LQ 0HGLFDUH IRU SD\PHQW RI UHDVRQDEOH FRVW RI VHUYLFHV LV LQWHQGHG WR PHHW DFWXDO FRVWV KRZHYHU ZLGHO\ WKH\ PD\ YDU\ IURP RQH LQVWLWXWLRQ WR DQRWKHU 7KLV LV VXEMHFW WR D OLPLWDWLRQ LI D SDUWLFXODU LQVWLWXWLRQjV FRVWV DUH IRXQG WR EH VXEVWDQWLDOO\ RXW RI OLQH ZLWK RWKHU LQVWLWXWLRQV LQ WKH VDPH DUHD WKDW DUH VLPLODU LQ VL]H VFRSH RI VHUYLFHV XWLOL]DWLRQ DQG RWKHU UHOHYDQW IDFWRUV HPSKDVLV DGGHG   0D[LPXP+RPH+HDOWK&DUH,QFY 1R 1R 0D[LPXP+RPH+HDOWK&DUH,QFY 6KDODOD6HFUHWDU\RI++6 6KDODOD6HFUHWDU\RI++6

3XUVXDQWWR86&† RR0D[LPXPDSSHDOHGWKH FRVWV VR ORQJ DV WKH\ DUH QRW VXEVWDQWLDOO\ RXWRIOLQH ZLWK LQWHUPHGLDU\jVGHWHUPLQDWLRQWRWKH3URYLGHU5HLPEXUVHPHQW FRPSDUDEOHFRPSDQLHV7KXVWKHKROGLQJRIWKHGLVWULFWFRXUW 5HYLHZ %RDUG WKH mUHYLHZ ERDUGl   7KH UHYLHZ ERDUG LV5(9(56('DQGWKHFDVHLV5(0$1'('WRWKHGLVWULFW UHYHUVHGWKHLQWHUPHGLDU\DQGDZDUGHGIXOOUHLPEXUVHPHQWWR FRXUWZLWKLQVWUXFWLRQVWRUHWXUQWKHFDVHWRWKH$GPLQLVWUDWRU 0D[LPXP  ,Q LWV UHYHUVDO RI WKH LQWHUPHGLDU\ WKH UHYLHZ WRGHWHUPLQHZKHWKHUWKH3ODLQWLIIjVFRVWVZHUHVXEVWDQWLDOO\ ERDUGIRXQGWKDWWKHLQWHUPHGLDU\jVVWXG\ZDVIODZHGEHFDXVH RXWRIOLQHZLWKFRPSDUDEOHFRPSDQLHV WKHFRPSDQLHVWRZKLFK0D[LPXPZDVFRPSDUHGKDGEHHQ FKRVHQDUELWUDULO\DQGWKHUHZDVQRHYLGHQFHWKDWWKHVHUYLFHV RIIHUHGE\0D[LPXPZHUHLGHQWLFDOWRWKHRWKHUFRPSDQLHV ,QDGGLWLRQWKHUHYLHZERDUGDOVRIRXQGWKDWDVWXG\GRQHE\ WKHLQGHSHQGHQWDFFRXQWLQJILUP.30*3HDW0DUZLFNZDV PRUH SHUVXDVLYH WKDQ WKH LQWHUPHGLDU\jV VWXG\ EDVHG RQ .30*jVPRUHWKRURXJKFRPSRQHWL]HGPDUNHWDQDO\VLV7KH .30*VWXG\IRXQGDQDYHUDJHFRVWRISHUYLVLWZLWK DVWDQGDUGGHYLDWLRQRI %HFDXVH0D[LPXPjVFRVWVIHOO ZLWKLQ WKH VWDQGDUG GHYLDWLRQ WKH UHYLHZ ERDUG IRXQG WKDW WKH\ZHUHUHDVRQDEOHDQGQRWVXEVWDQWLDOO\RXWRIOLQHZLWKWKH PDUNHW 7KHLQWHUPHGLDU\WKHQDSSHDOHGWRWKH$GPLQLVWUDWRURIWKH +HDOWK&DUH)LQDQFLQJ$GPLQLVWUDWLRQDFWLQJRQEHKDOIRIWKH 6HFUHWDU\7KH$GPLQLVWUDWRUUHYHUVHGWKHUHYLHZERDUGDQG UHLQVWDWHGWKHGHFLVLRQRIWKHLQWHUPHGLDU\,QILQGLQJWKDW 0D[LPXP ZDV QRW HQWLWOHG WR UHLPEXUVHPHQW LQ H[FHVV RI  SHUYLVLWWKH$GPLQLVWUDWRUORRNHGIRUJXLGDQFHIURP WKH 0HGLFDUH 3URYLGHU 5HLPEXUVHPHQW 0DQXDO WKH mPDQXDOl 5HO\LQJRQWKHPDQXDOWKH$GPLQLVWUDWRUKHOG WKDW0D[LPXPZDVQRWDSUXGHQWEX\HUDQGDVDUHVXOWKHOG

 350 †  VWDWHV

5HDVRQDEOH FRVWV    ,PSOLFLW LQ WKH LQWHQWLRQ WKDW DFWXDO FRVWV EH SDLG WR WKH H[WHQW WKDW WKH\ DUH UHDVRQDEOH LV WKH H[SHFWDWLRQ WKDW WKH SURYLGHU VHHNV WR PLQLPL]H LWV FRVWV DQG WKDW LWV DFWXDO FRVWV GR QRW H[FHHG ZKDW D SUXGHQW DQG FRVW FRQVFLRXV EX\HU SD\V IRU D JLYHQ VHUYLFH 6HH †   ,I FRVWV DUH GHWHUPLQHG WR H[FHHG WKH OHYHO WKDW VXFK EX\HUV LQFXU LQ WKH DEVHQFH RI FOHDU HYLGHQFH WKDW WKH KLJKHU FRVWV ZHUH XQDYRLGDEOH WKH H[FHVV FRVWV DUH QRW UHLPEXUVDEOH XQGHU WKH SURJUDP HPSKDVLV DGGHG   0D[LPXP+RPH+HDOWK&DUH,QFY 1R 1R 0D[LPXP+RPH+HDOWK&DUH,QFY  6KDODOD6HFUHWDU\RI++6 6KDODOD6HFUHWDU\RI++6

FRPSHWLWLYH ELGGLQJ UHTXLUHPHQW LV D UXOH WKDW FUHDWHV D WKDW LWV FRVWV ZHUH QRW UHDVRQDEOH  6HH 350 ††  VLJQLILFDQWQHZEXUGHQRQWKH SURYLGHUWKHUXOHVKRXOGEH $ DUWLFXODWLQJWKHSUXGHQWEX\HUVWDQGDUG 6SHFLILFDOO\ VXEMHFWWRWKHUXOHPDNLQJSURFHGXUHV,IWKH6HFUHWDU\ZDQWV WKH $GPLQLVWUDWRU IRXQG IDXOW ZLWK 0D[LPXPjV IDLOXUH WR WRDGGDFRPSHWLWLYHELGGLQJUHTXLUHPHQWFRQVLVWHQWZLWKWKH IROORZ WKH PDQXDOjV VXJJHVWHG SURFHGXUHV DQG VROLFLW $GPLQLVWUDWRUjV LQWHUSUHWDWLRQ VKH VKRXOG GR VR DEVHQW FRPSHWLWLYH ELGV EHIRUH HQWHULQJ LQWR D FRQWUDFW ZLWK HPHUJHQF\RURWKHUMXVWLILFDWLRQLQDFFRUGDQFHZLWKWKHQRWLFH 'LYHUVLILHG6HH350† VXJJHVWLQJWKHVROLFLWDWLRQRI DQGFRPPHQWUXOHPDNLQJSURFHGXUHVPDQGDWHGE\86& FRPSHWLWLYHELGV ,QDGGLWLRQWKH$GPLQLVWUDWRUUHOLHGRQWKH †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jVGHQLDORIUHLPEXUVHPHQWWR0D[LPXPZDV UHDVRQDEOHFRVWQRQHRIWKHFLWHGFDVHVHVWDEOLVKHGWKDWWKH DUELWUDU\DQGFDSULFLRXVFRQWUDU\WRODZRUXQVXSSRUWHGE\ SUXGHQWEX\HUSULQFLSOHLVDOHJLWLPDWHPHWKRGRIGLVDOORZLQJ VXEVWDQWLDOHYLGHQFH6HH86&†  VHHHJ0HGLFDO FRVWVLQGHSHQGHQWRIWKHVXEVWDQWLDOO\RXWRIOLQHWHVW6HH /*+ /WG Y 6XOOLYDQ  ) 6XSS   ''&    DFNQRZOHGJLQJ WKH SUXGHQW EX\HU SULQFLSOH EXW QHJOHFWLQJWRDSSO\LWDVDQLQGHSHQGHQWVWDQGDUG 1HZsHUVH\ 350 †  $ VWDWHV &KDSWHU,QFRIWKH$P3K\VLFDO7KHUDS\$VVRFY3UXGHQW $ *HQHUDO  7KH SUXGHQW DQG FRVW FRQVFLRXV EX\HU QRW RQO\ /LIH,QV&R)G '&&LU  UHFRJQL]LQJWKH UHIXVHV WR SD\ PRUH WKDQ WKH JRLQJ SULFH IRU DQ LWHP RU VHUYLFH SUXGHQWEX\HUSULQFLSOHDVDYDOLGSURYLVLRQEXWXVLQJLWWR KHVKH DOVR VHHNV WR HFRQRPL]H E\ PLQLPL]LQJ FRVW   $Q\ DOHUW GLVDOORZFRVWVWKDWZHUHVXEVWDQWLDOO\RXWRIOLQH 1HZsHUVH\ DQG FRVW FRQVFLRXV EX\HU VHHNV VXFK DGYDQWDJHV LW LV H[SHFWHG 6SHHFK/DQJXDJH+HDULQJ$VVRF)6XSS '1s WKDW 0HGLFDUH SURYLGHUV RI VHUYLFHV ZLOO DOVR VHHN WKHP    UHFRJQL]LQJDGXW\WRIROORZPDQXDOSURYLVLRQVEXW HPSKDVLV DGGHG 

GLVPLVVLQJWKHFDVHEDVHGRQODFNRIVWDQGLQJ   350 †  VWDWHV WKDW %HFDXVHWKHDFWLRQVRIWKH$GPLQLVWUDWRULQLPSRVLQJWKH *HQHUDOO\ D SURYLGHU LV SUXGHQW WR VROLFLW FRPSHWLWLYH ELGV FRPSHWLWLYH ELGGLQJ UHTXLUHPHQW LQIRUPDOO\ ZHUH DUELWUDU\ 7KHUHIRUH LQ WKH DEVHQFH RI FRPSHWLWLYH ELGGLQJ ZKLFK ZRXOG DQGFDSULFLRXVZHGRQRWUHDFKWKHTXHVWLRQRIZKHWKHUWKH RWKHUZLVH EH DSSURSULDWH LQ WKH FLUFXPVWDQFH WKH SURYLGHU PXVW $GPLQLVWUDWRUjV GHFLVLRQ ZDV VXSSRUWHG E\ VXEVWDQWLDO GHPRQVWUDWH WKH PDQQHU LQ ZKLFK LW VHDUFKHG WKH PDUNHWSODFH IRU HYLGHQFH,WLVFOHDUWKDWWKH3ODLQWLIILVHQWLWOHGWRDOORILWV WKH PRVW DSSURSULDWH DQG HIIHFWLYH PHDQV RI REWDLQLQJ VHUYLFHV HPSKDVLV DGGHG   0D[LPXP+RPH+HDOWK&DUH,QFY 1R 1R 0D[LPXP+RPH+HDOWK&DUH,QFY  6KDODOD6HFUHWDU\RI++6 6KDODOD6HFUHWDU\RI++6

5HKDE 6HUY 3& Y 6KDODOD  )G   WK &LU 7KH $GPLQLVWUDWRU KRZHYHU UHDGV WKH SUXGHQW EX\HU   7KH0HGLFDUH$FWSURYLGHVWKDWUHLPEXUVHPHQWVDUH FRQFHSWDVLQFOXGLQJDFRPSHWLWLYHELGGLQJRUVLPLODUPDUNHW WREHPDGHZKHUHWKHFRVWVFODLPHGDUHUHDVRQDEOH6HH VXUYH\UHTXLUHPHQW6HHVXSUDQ8QGHU350† 86&†† G L [7KH0HGLFDUH$FWGHILQHV WKH $GPLQLVWUDWRU IRXQG WKDW WR DFW DV D SUXGHQW EX\HU D UHDVRQDEOHFRVWDVmWKHFRVWVDFWXDOO\LQFXUUHGDQGVKDOOEH SURYLGHUPXVWPHHWWKHDGGLWLRQDOUHTXLUHPHQWRIHQJDJLQJLQ GHWHUPLQHGLQDFFRUGDQFHZLWKUHJXODWLRQVHVWDEOLVKLQJWKH D FRPSHWLWLYH ELGGLQJ SURFHVV RU RWKHUZLVH PDNLQJ DQ PHWKRGRUPHWKRGVWREHXVHGDQGWKHLWHPVWREHLQFOXGHG XQGHILQHGVHDUFKRIWKHPDUNHWSODFH,QVRIDUDVLWDGGVWKH LQ GHWHUPLQLQJ VXFK FRVWVl   86& †  [ Y  $  UHTXLUHPHQWRIFRPSHWLWLYHELGGLQJRUHTXLYDOHQWSURFHVVZH %RWK WKH UHJXODWLRQV DQG WKH PDQXDO SURYLGH DGGLWLRQDO ILQG WKDW WKH $GPLQLVWUDWRUj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jVUHOLDQFHRQWKH VXFK DV 0HGLFDUH LV WR SURYLGH XQLIRUP UXOHV E\ ZKLFK DOO SUXGHQWEX\HUVWDQGDUGLVPLVSODFHGEHFDXVHLWLVLQFRQVLVWHQW SDUWLFLSDQWVPD\EHWUHDWHGHTXDOO\6HHJHQHUDOO\86& ZLWKWKHVXEVWDQWLDOO\RXWRIOLQHVWDQGDUGDQGDUHJXODWLRQ †   HW VHT  :KHUH DQ DGPLQLVWUDWLYH DJHQF\ FUHDWHV WUXPSVDPDQXDOSURYLVLRQ2QWKHLUIDFHWKHVXEVWDQWLDOO\ PDQXDOSURYLVLRQVWKDWDUHLQFRQVLVWHQWZLWKWKHJRYHUQLQJ RXWRIOLQH VWDQGDUG DQG WKH SUXGHQW EX\HU SURYLVLRQ DV UHJXODWLRQV LW FUHDWHV IRU LWVHOI D NLQG RI RSHQHQGHG DUWLFXODWHG LQ 350 ††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mVXEVWDQWLYHlRUmOHJLVODWLYHlUHJXODWLRQVDQGDQ RSSRUWXQLW\WRFRPPHQW6HH86&†%HFDXVHWKH 5HJXODWLRQV DW  &)5 †  SURYLGH WKDW ZKLOH 0HGLFDUH SD\PHQW EDVHG RQ D SURYLGHUjV UHDVRQDEOH FRVWV LV LQWHQGHG WR PHHW WKH FRVWV DFWXDOO\ LQFXUUHG D OLPLW DSSOLHV ZKHUH D SDUWLFXODU LQVWLWXWLRQjV FRVWV DUH IRXQG WR EH VXEVWDQWLDOO\ RXW RI mSUXGHQW EX\HUl FRQFHSW OLQH ZLWK RWKHU LQVWLWXWLRQV LQ WKH VDPH DUHD ZKLFK DUH VLPLODU LQ VL]H VFRSH RI VHUYLFHV XWLOL]DWLRQ DQG RWKHU UHOHYDQW IDFWRUV RU 0HPRUDQGXP 'LVWULEXWHG E\ WKH 'HSXW\ 'LUHFWRU RI WKH 6HFUHWDU\jV WKH FRVWV DUH RWKHUZLVH QRW UHDVRQDEOH 7KLV OLPLWDWLRQ KDV EHHQ %XUHDX RI 3ROLF\ 'HYHORSPHQW   6:490/ E\ *UDQFDUH ,QF Y LQWHUSUHWHG LQ YDULRXV SURJUDP PDQXDOV DQG LQVWUXFWLRQV DV D 6KDODOD  ) 6XSSG   ''&