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 /($7+(5 ; ,1&  3ODLQWLII$SSHOOHH   1R  Y !   0,7&+(// 0$18)$&785,1*  *5283 ,1&QRZNQRZQDV  0LWFKHOO$XWRPRWLYH,QF  0,7&+(// &25325$7,21 2)   2:2662  'HIHQGDQWV$SSHOODQWV  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1R n9LFWRULD$5REHUWV'LVWULFWsXGJH $UJXHG 1RYHPEHU 'HFLGHGDQG)LOHG sDQXDU\ %HIRUH *8<DQG%2**6&LUFXLWsXGJHV &$55'LVWULFW sXGJH

7KH +RQRUDEOH sDPHV * &DUU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 1R 0DQXIDFWXULQJ*URXS,QFHWDO

BBBBBBBBBBBBBBBBB &2816(/ $5*8('   (ULN * &KDSSHOO 0F+8*+ 'H181( 0F&$57+< 6\OYDQLD 2KLR IRU $SSHOODQWV  sDPHV ( 'H/LQH.(555866(// :(%(5'HWURLW0LFKLJDQ IRU$SSHOOHH21%5,() (ULN*&KDSSHOO0F+8*+ 'H181( 0F&$57+<6\OYDQLD2KLRIRU$SSHOODQWV sDPHV ( 'H/LQH .(55 5866(//  :(%(5 'HWURLW 0LFKLJDQIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 5$/3+%*8<s5&LUFXLWsXGJH'HIHQGDQWV0LWFKHOO 0DQXIDFWXULQJ *URXS ,QF QRZ NQRZQ DV 0LWFKHOO $XWRPRWLYH ,QF 0LWFKHOO $XWRPRWLYH  DQG LWV SDUHQW FRUSRUDWLRQ 0LWFKHOO &RUSRUDWLRQ RI 2ZRVVR 0LWFKHOO &RUS  DSSHDO IURP WKH GLVWULFW FRXUWjV RUGHU JUDQWLQJ SODLQWLIIjVPRWLRQIRUGHWHUPLQDWLRQRILQWHUHVWLQUHDOSURSHUW\ DQG GHQ\LQJ 0LWFKHOO &RUSjV PRWLRQ WR VHW DVLGH WKH JDUQLVKPHQWRIOHDVHSD\PHQWVRQWKDWSURSHUW\7KHVHSRVW MXGJPHQWPRWLRQVDURVHRXWRIWKHHIIRUWVRISODLQWLII8QLWHG 6WDWHV/HDWKHU,QF 86/ WRHQIRUFHWKHMXGJPHQWRIRYHU PLOOLRQHQWHUHGLQWKLVFDVHDJDLQVW0LWFKHOO$XWRPRWLYH ZKLFK RZQHG UHDO SURSHUW\ DQG D PDQXIDFWXULQJ IDFLOLW\ ORFDWHG LQ &ODUH 0LFKLJDQ  0LWFKHOO &RUS DV D VHFXUHG FUHGLWRU RI LWV VXEVLGLDU\ DVVHUWHG WKDW LW KDG D VXSHULRU LQWHUHVWLQWKHSURSHUW\ 7KHGLVWULFWFRXUWDGRSWLQJWKHPDJLVWUDWHMXGJHjVUHSRUW DQGUHFRPPHQGDWLRQIRXQGWKDWWKHVHFXULW\LQWHUHVWFODLPHG E\0LWFKHOO&RUSKDGEHHQH[WLQJXLVKHGE\PHUJHURIWKHWLWOH DQGPRUWJDJHZKHQWKHSURSHUW\ZDVUHFRQYH\HGWR0LWFKHOO $XWRPRWLYH E\ GHHG LQ OLHX RI IRUHFORVXUH  &RQVHTXHQWO\ 86/jVOHY\RQWKHSURSHUW\DQGLWVJDUQLVKPHQWRIUHQWVZHUH WR EH VXVWDLQHG DQG HQIRUFHG  'HIHQGDQWV DUJXH WKDW WKH 1R 8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO  0DQXIDFWXULQJ*URXS,QFHWDO

GLVWULFWFRXUWHUUHGE\  UXOLQJWKDWWKHGHHGPHUJHGLQWRWKH PRUWJDJH    IDLOLQJ WR GHWHUPLQH ZKHWKHU WKH OHY\ ZDV SURSHU  DQG   IDLOLQJ WR DIIRUG GHIHQGDQWV D MXU\ WULDO RU HYLGHQWLDU\ KHDULQJ SXUVXDQW WR 0LFK &RPS /DZV $QQ †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jV DVVHWVLQFOXGLQJWKH&ODUHIDFLOLW\IRUDWRWDORIPLOOLRQ 7KH/DPRQW*URXSSDLGZLWKPLOOLRQLQFDVKDQGWZR SURPLVVRU\QRWHVIRUWKHEDODQFH7RVHFXUHWKHQRWHVWKH /DPRQW *URXS JUDQWHG 0LWFKHOO $XWRPRWLYH D VHFXULW\ LQWHUHVWLQWKHSXUFKDVHGDVVHWVDQGDPRUWJDJHRQWKH&ODUH IDFLOLW\  $OVR WKH GHEW RZHG WR 86/ ZDV DVVXPHG E\ WKH /DPRQW*URXS2Q$SULO ZLWKLQGD\VRIWKHVDOH 86/ILOHGWKLVGLYHUVLW\DFWLRQWRUHFRYHURQWKHGHEW

 9 RUDO DUJXPHQW WKH SDUWLHV LQGLFDWHG WKDW WKH &ODUH SURSHUW\ KDV EHHQ VROG DQG WKH SURFHHGV DUH EHLQJ KHOG LQ HVFURZ SHQGLQJ UHVROXWLRQ RI WKLV DSSHDO

 &ODLPV DJDLQVW 0LWFKHOO &RUS DQG :LOOLDP 0LWFKHOO ZKR ZDV WKH SULQFLSDO VKDUHKROGHU 3UHVLGHQW DQG &KDLUPDQ RI WKH %RDUG RI ERWK 0LWFKHOO &RUS DQG 0LWFKHOO $XWRPRWLYH ZHUH GLVPLVVHG ZLWKRXW  8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 1R 1R 8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO  0DQXIDFWXULQJ*URXS,QFHWDO 0DQXIDFWXULQJ*URXS,QFHWDO

2Q0D\ 0LWFKHOO$XWRPRWLYHJUDQWHG0LWFKHOO $Q\SHUVRQVRPDGHDSDUW\RUDQ\SDUW\WRWKHRULJLQDO &RUS D FRQWLQXLQJ VHFXULW\ LQWHUHVW LQ DOO LWV SHUVRQDO DQG SURFHHGLQJPD\KDYHVXFKLVVXHGHWHUPLQHGE\DMXU\ LQWDQJLEOHSURSHUW\LQFOXGLQJDOOmLQVWUXPHQWVlWRVHFXUHDQ\ XSRQGHPDQGWKHUHIRUDQGSD\PHQWRIDMXU\IHHDVLQ DQG DOO H[LVWLQJ DQG IXWXUH LQGHEWHGQHVV  7KH VHFXULW\ RWKHUFLYLODFWLRQVLIVXFKSHUVRQZRXOGEHHQWLWOHGWRD DJUHHPHQW ZDV VLJQHG E\ +HOHQ 0DOLN DV 6HFUHWDU\ DQG MXU\ WULDO LI WKH PDWWHU ZDV DGMXGLFDWHG LQ D VHSDUDWH 7UHDVXUHUIRUERWK0LWFKHOO&RUSDQG0LWFKHOO$XWRPRWLYH DFWLRQ ,W LV XQGLVSXWHG WKDW 0LWFKHOO &RUS REWDLQHG D VHFXULW\ LQWHUHVW LQ WKH /DPRQW *URXSjV PRUWJDJH DQG SURPLVVRU\ :HQHHGQRWGHFLGHZKHWKHUWKHGHIHQGDQWVZRXOGEHHQWLWOHG QRWHVWKURXJKWKLVDJUHHPHQW WRDMXU\WULDOLQDVHSDUDWHDFWLRQEHFDXVHDQ\VXFKULJKWZDV ZDLYHGE\WKHGHIHQGDQWVj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jV@LQWHQWWRFRQYH\DQGWUDQVIHUDEVROXWH MXGJH:KLOHZHGRQRWKDYHWKHWUDQVFULSWWRUHYLHZVXFKD WLWOH WR WKH DERYH GHVFULEHG SUHPLVHV WR >0LWFKHOO UHTXHVWZRXOGQRWVXEVWLWXWHIRUWKHILOLQJRIDMXU\GHPDQG $XWRPRWLYH@ IUHH RI DQ\ HTXLW\ RI UHGHPSWLRQ  ,W LV 1RUGRZHILQGSHUVXDVLYHWKHFODLPE\0LWFKHOO&RUSWKDWLWV H[SUHVVO\XQGHUVWRRGDQGDJUHHGWKDWWKHH[HFXWLRQDQG GHPDQGZDVWLPHO\EHFDXVHLWZDVILOHGZLWKLQGD\VRIWKH GHOLYHU\RIWKLV'HHGVKDOOQRWLQDQ\PDQQHUEHGHHPHG PDJLVWUDWH MXGJHjV UHSRUW DQG UHFRPPHQGDWLRQ ZKLFK WR EH D PHUJHU ZLWK RU WKH H[WLQJXLVKPHQW RI WKH DFNQRZOHGJHG LWV VWDQGLQJ DV DQ LQWHUYHQRU LQ WKH 0RUWJDJHRUFRQVWLWXWHDUHGXFWLRQRIWKHLQGHEWHGQHVV SURFHHGLQJV VHFXUHG WKHUHE\  7KH 0RUWJDJH DQG WKH HQWLUH LQGHEWHGQHVVVHFXUHGE\WKHPRUWJDJHLVDQGUHPDLQVLQ 7KHVXSSOHPHQWDU\SURFHHGLQJVLQWKLVFDVHZHUHLQLWLDWHG IXOOIRUFHDQGHIIHFWSURYLGHGKRZHYHU>WKDW@ WKH LQ$XJXVW WKURXJK0LWFKHOO&RUSjVRZQPRWLRQWRVHW UHFRXUVHREOLJDWLRQRI>/DPRQW *URXS@XQGHUWKDW DVLGHWKHJDUQLVKPHQWDQG86/jVPRWLRQIRUGHWHUPLQDWLRQRI LQWHUHVWVLQWKHSURSHUW\RIWKHMXGJPHQWGHEWRU7KH0LWFKHOO GHIHQGDQWVFOHDUO\SODFHGWKHLVVXHRIZKHWKHU WKH VHFXULW\ LQWHUHVWZDVVXSHULRUWR86/jVMXGJPHQWOLHQEHIRUHWKHFRXUW SUHMXGLFH LQ sXO\   IRUGHFLVLRQ+DYLQJVXEPLWWHGWKHLVVXHIRUGHWHUPLQDWLRQ  WKH GHIHQGDQWV PD\ QRW ZDLW VL[ PRQWKV EHIRUH ILOLQJ D 0LWFKHOO &RUS DOVR DVVHUWV WKDW D VHFXULW\ LQWHUHVW ZDV FUHDWHG RQ GHPDQGIRUMXU\WULDO $SULO    ZKHQ LW WRRN SRVVHVVLRQ RI WKH /DPRQW *URXSjV PRUWJDJH DQG SURPLVVRU\ QRWHV 7R WKH H[WHQW WKDW WKH TXHVWLRQ RI ZKHWKHU 0LWFKHOO $)),50(' &RUS DFWXDOO\ WRRN SRVVHVVLRQ RI WKH GRFXPHQWV DW WKDW WLPH PD\ KDYH SUHVHQWHG D GLVSXWHG TXHVWLRQ RI IDFW LW ZDV QRW PDWHULDO WR WKH GLVWULFW FRXUWjV GHFLVLRQ )XUWKHU ZH QHHG QRW GHWHUPLQH ZKHWKHU 0LWFKHOO $XWRPRWLYH JUDQWHG D VHFXULW\ LQWHUHVW LQ WKH PRUWJDJH DQG QRWHV SULRU WR H[HFXWLQJ WKH ZULWWHQ DJUHHPHQW RQ 0D\     8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 1R 1R 8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO  0DQXIDFWXULQJ*URXS,QFHWDO 0DQXIDFWXULQJ*URXS,QFHWDO

  7KHUHFDQEHQRGRXEWLQWKLVFDVHWKDWGHVSLWHQRW FHUWDLQ$VVHW3XUFKDVH$JUHHPHQWGDWHG$SULO  KDYLQJ WDNHQ SK\VLFDO SRVVHVVLRQ RI WKH SURSHUW\ WKH OHY\ VKDOO EH UHGXFHG E\ WKH VXP RI 6L[ 0LOOLRQ 'ROODUV RIILFHUREWDLQHGFRQVWUXFWLYHSRVVHVVLRQWKURXJKWKHH[SUHVV   JUDQWRIFRQWURORYHUWKHVDOHDQGGLVSRVLWLRQRIDOORI0LWFKHOO $XWRPRWLYHjVSHUVRQDOSURSHUW\*LYHQWKHGHEWRUjVIXUWKHU 0LWFKHOO$XWRPRWLYHKHOGERWKWLWOHWRDQGWKHPRUWJDJHRQ DFNQRZOHGJPHQWWKDWLWVUHPDLQLQJSHUVRQDOSURSHUW\ZDVQRW WKHSURSHUW\ VXIILFLHQWWRVDWLVI\WKHMXGJPHQWRI86/WKHVXEVHTXHQWOHY\ DJDLQVW WKH &ODUH SURSHUW\ ZDV QRW LQ YLRODWLRQ RI 0LFK 2QsDQXDU\  DFRQVHQWMXGJPHQWLQIDYRURI86/ &RPS/DZV$QQ† ZDVHQWHUHGDJDLQVW0LWFKHOO$XWRPRWLYHWKH/DPRQW*URXS ,QFDQG/DPRQW*URXS$FTXLVLWLRQ&RUSRUDWLRQMRLQWO\DQG )LQDOO\WKH0LWFKHOOGHIHQGDQWVFRQWLQXHWRDUJXHWKDWWKH VHYHUDOO\LQWKHVXPRISOXVLQWHUHVW86/ SURPLVVRU\QRWHVFRXOGQRWEHVXEMHFWWROHY\DJDLQVWSHUVRQDO FRQGXFWHG D FUHGLWRUjV H[DPLQDWLRQ GXULQJ ZKLFK +HOHQ SURSHUW\ DEVHQW VWDWXWRU\ DXWKRULW\  6HH sHQVHQ Y 2FHDQD 0DOLNWHVWLILHGDVWKHUHSUHVHQWDWLYHRI0LWFKHOO$XWRPRWLYH &LUFXLWsXGJH1: 0LFK  0LFKLJDQ ODZH[SUHVVO\SURYLGHVKRZHYHUWKDWH[HFXWLRQPD\EHPDGH 2Q0D\ 86/OHYLHGRQWKHSHUVRQDOSURSHUW\RI DJDLQVW DOO SHUVRQDO SURSHUW\ RI WKH MXGJPHQW GHEWRU 0LWFKHOO$XWRPRWLYHDWLWVRIILFHVLQ2ZRVVR0LFKLJDQ7KH LQFOXGLQJm>E@LOOVDQGRWKHUHYLGHQFHVRIGHEWl 0,&+ &203 OHY\RIILFHUDUULYHGZLWKWKUHHWUXFNVDQGVHYHUDODVVLVWDQWVWR /$:6 $11†  0RUHLPSRUWDQWO\WKHFKDOOHQJH WDNHSRVVHVVLRQRIWKHSHUVRQDOSURSHUW\,QRUGHUWRDYRLGWKH WR86/jVOHY\DJDLQVWWKHSURPLVVRU\QRWHVZDVUHOHYDQWWR FRVW RI WUDQVSRUWDWLRQ DQG VWRUDJH 0LWFKHOO $XWRPRWLYH 0LWFKHOO &RUSjV FODLP WKDW LW KDG SHUIHFWHG LWV VHFXULW\ WKURXJKFRXQVHODJUHHGWKDWWKHRIILFHUZRXOGKDYHFRPSOHWH LQWHUHVWEHIRUH86/jVMXGJPHQWOLHQKDGDWWDFKHG+DYLQJ FRQWURORYHUWKHVDOHRIDOORI0LWFKHOO$XWRPRWLYHjVSHUVRQDO IRXQGWKDWWKHVHFXULW\LQWHUHVWZDVH[WLQJXLVKHGE\PHUJHU SURSHUW\ WKDW0LWFKHOO$XWRPRWLYHZRXOGQRWVHOOPRYHRU LW ZDV QRW QHFHVVDU\ IRU WKH GLVWULFW FRXUW WR UHVROYH WKH GLVSRVHRIDQ\RILWVSHUVRQDOSURSHUW\ DQGWKDWLWVUHPDLQLQJ GLVSXWH FRQFHUQLQJ ZKHQ WKDW LQWHUHVW PD\ KDYH EHHQ SHUVRQDOSURSHUW\ZDVQRWVXIILFLHQWWRVDWLVI\WKHMXGJPHQW SHUIHFWHG :LWK WKDW XQGHUVWDQGLQJ WKH OHY\ RIILFHU GLG QRW WDNH SRVVHVVLRQRIWKHSURSHUW\ & sXU\'HPDQG 2Q sXQH    0LWFKHOO &RUS DGYLVHG 86/ WKDW LW )LQDOO\WKH0LWFKHOOGHIHQGDQWVDUJXHWKDWWKHGLVWULFWFRXUW LQWHQGHGWRDVVHUWDSULRULW\LQWHUHVWLQWKHDVVHWVRI0LWFKHOO HUUHGE\GHWHUPLQLQJWKHFRPSHWLQJLQWHUHVWVLQWKHMXGJPHQW $XWRPRWLYHSXUVXDQWWRLWVVHFXULW\DJUHHPHQWGDWHG0D\ GHEWRUjVSURSHUW\ZLWKRXWDMXU\WULDO$OWKRXJKWKHGLVWULFW    2Q sXQH    0LWFKHOO &RUS FODLPHG WR KDYH FRXUWGLGQRWDGGUHVVWKHGHPDQGIRUMXU\WULDOLQLWVGHFLVLRQ mSHDFHDEO\UHSRVVHVVHGlWKHUHPDLQLQJSHUVRQDOSURSHUW\RI ZHILQGDQ\HUURUWREHKDUPOHVVDVDPDWWHURIODZ3XUVXDQW 0LWFKHOO$XWRPRWLYHSXUVXDQWWRWKHVHFXULW\DJUHHPHQW2Q WR 0LFK &RPS /DZV $QQ †  SURFHHGLQJV sXQH 86/ILOHGDIRUPDO1RWLFHRI/HY\DJDLQVWWKH VXSSOHPHQWDU\ WR MXGJPHQW DUH WR EH KHDUG E\ WKH MXGJH &ODUHSURSHUW\ ZLWKRXWDMXU\H[FHSWDVSURYLGHGLQ0LFK&RPS/DZV$QQ †  ZKLFKVWDWHVWKDW ,QsXO\ 86/VHUYHGDSHULRGLFJDUQLVKPHQWRQWKH WHQDQW WKDW ZDV SD\LQJ WR XVH WKH &ODUH IDFLOLW\  0LWFKHOO &RUS FODLPLQJ DQ LQWHUHVW LQ WKH &ODUH SURSHUW\ ILOHG D PRWLRQWRVHWDVLGHWKHSHULRGLFJDUQLVKPHQW86/UHFHLYHG  8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 1R 1R 8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO  0DQXIDFWXULQJ*URXS,QFHWDO 0DQXIDFWXULQJ*URXS,QFHWDO

DWRWDORILQJDUQLVKHGSHULRGLFOHDVHSD\PHQWVEHIRUH 8QGHU )HG 5 &LY 3  D  HQIRUFHPHQW RI D PRQH\ WKHOHDVHZDVWHUPLQDWHG7KHQRQ$XJXVW 86/ MXGJPHQWPXVWEHE\ZULWRIH[HFXWLRQLQDFFRUGDQFHZLWKWKH ILOHGLWVPRWLRQIRUGHWHUPLQDWLRQRILQWHUHVWVLQWKHSURSHUW\ SUDFWLFHDQGSURFHGXUHVRIWKHVWDWHLQZKLFKWKHGLVWULFWFRXUW RI 0LWFKHOO $XWRPRWLYH DUJXLQJ WKDW 0LWFKHOO &RUSjV LV ORFDWHG  86/ REWDLQHG D ZULW RI H[HFXWLRQ RQ 0D\  VHFXULW\ LQWHUHVW ZDV H[WLQJXLVKHG E\ PHUJHU ZDV QRW  LQDFFRUGDQFHZLWK0LFKLJDQODZ([HFXWLRQPD\EH SHUIHFWHGZDVIUDXGXOHQWDQGWKDWWKHFRUSRUDWHIRUPVKRXOG PDGHDJDLQVWUHDOSURSHUW\RIWKHMXGJPHQWGHEWRUmRQO\DIWHU EH GLVUHJDUGHG  7KH 0LWFKHOO GHIHQGDQWV ILOHG D MRLQW H[HFXWLRQKDVEHHQPDGHDJDLQVWWKHSHUVRQDOSURSHUW\ UHVSRQVHRQ6HSWHPEHU  DQGVXFKSHUVRQDOSURSHUW\LVLQVXIILFLHQWWRPHHWWKHVXPRI PRQH\DQGFRVWVIRUZKLFKMXGJPHQWZDVUHQGHUHGl0,&+ 7KHVH SRVWMXGJPHQW PRWLRQV ZHUH UHIHUUHG WR WKH &203 /$:6 $11† PDJLVWUDWHMXGJHZKRDIWHUEULHILQJDQGRUDODUJXPHQWLVVXHG KLVUHSRUWDQGUHFRPPHQGDWLRQ 5 5 RQ0DUFK 7KH0LWFKHOOGHIHQGDQWVDUJXHIRUWKHILUVWWLPHRQDSSHDO 7KH PDJLVWUDWH MXGJH FRQFOXGHG   WKDW WKH PRUWJDJH DQG WKDWDVHFRQGZULWRIH[HFXWLRQZDVUHTXLUHGWROHY\DJDLQVW VHFXULW\ LQWHUHVW LQ LW VKRXOG EH GHHPHG WR KDYH EHHQ WKH&ODUHSURSHUW\DQGWKDWWKHOHY\ZDVQRWSURSHUO\ILOHG H[WLQJXLVKHGLQ1RYHPEHU  DQG  WKDW0LWFKHOO&RUS ZLWKWKHUHJLVWHURIGHHGVDVLVUHTXLUHGXQGHU0LFKLJDQ&RXUW KDG IDLOHG WR SHUIHFW LWV VHFXULW\ LQWHUHVW XQWLO DIWHU 86/jV 5XOH )  7KHUHFRUGVKRZVKRZHYHUWKDWWKHZULW JDUQLVKPHQWDQGOHY\RISHUVRQDOSURSHUW\2Q0DUFK RIH[HFXWLRQVSHFLILFDOO\DXWKRUL]HGOHY\DJDLQVWERWKSHUVRQDO WKH0LWFKHOOGHIHQGDQWVMRLQWO\ILOHGREMHFWLRQVWRWKH DQGUHDOSURSHUW\DQGWKDWWKHQRWLFHRIOHY\DQGZULWZHUH 5 5DQGDVHSDUDWHGHPDQGIRUMXU\WULDO86/UHVSRQGHGWR ILOHGZLWKWKHUHJLVWHURIGHHGVRQsXQH  WKHREMHFWLRQV 1H[WWKH0LWFKHOOGHIHQGDQWVDUJXHWKDWWKHOHY\DJDLQVWWKH 7KHGLVWULFWFRXUWDGRSWHGWKHPDJLVWUDWHMXGJHjVUHSRUWDQG &ODUHSURSHUW\ZDVLQHIIHFWLYHEHFDXVHWKHOHY\DJDLQVWWKH UHFRPPHQGDWLRQDJUHHLQJWKDWPHUJHUH[WLQJXLVKHG0LWFKHOO SHUVRQDOSURSHUW\ZDVLQHIIHFWLYH:HGLVDJUHH2Q0D\ &RUSjV VHFXULW\ LQWHUHVW DQG ILQGLQJ WKDW WKH UHPDLQLQJ  WKHOHY\RIILFHUZHQWWR0LWFKHOO$XWRPRWLYHjVRIILFHV REMHFWLRQV ZRXOG QRW DOWHU WKH RXWFRPH  $FFRUGLQJO\ WKH ZLWK WKH ZULW RI H[HFXWLRQ WR OHY\ DJDLQVW LWV SHUVRQDO FRXUW GHQLHG WKH PRWLRQ WR VHW DVLGH JDUQLVKPHQW JUDQWHG SURSHUW\%DVHGRQWKHDVVXUDQFHVRI0LWFKHOO$XWRPRWLYH 86/j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mERXQGIURPWKHWLPHRIVXFKOHY\l0,&+ &203 HVWDWHPRUWJDJHEHFRPHVWKHRZQHURIWKHIHHWKHPRUWJDJH /$:6 $11†7KHOHY\RFFXUVZKHQWKHSURSHUW\ DQG IHH DUH PHUJHG DQG WKH PRUWJDJH LV H[WLQJXLVKHG LVVHL]HGQRWZKHQWKHUHWXUQLVPDGHDQGWKHVHL]XUHPD\EH %\HUOHLQY6KLSS1:G  0LFK$SS   DFFRPSOLVKHGWKURXJKDFWXDORUFRQVWUXFWLYHSRVVHVVLRQ6HH mµ7KLVUXOHLVKRZHYHUVXEMHFWWRWKHH[FHSWLRQWKDWZKHQLW ,Q UH)HHVRI&RXUW2IILFHU1:G  0LFK$SS LVWRWKHLQWHUHVWRIWKHPRUWJDJHHDQGLVKLVLQWHQWLRQWRNHHS  8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 1R 1R 8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO  0DQXIDFWXULQJ*URXS,QFHWDO 0DQXIDFWXULQJ*URXS,QFHWDO

WKHRXWFRPHRIWKHPHUJHULVVXH0LWFKHOO&RUSDOVRDUJXHV WKHPRUWJDJHDOLYHWKHUHLVQRPHUJHUXQOHVVWKHULJKWVRIWKH WKDWWKHGLVWULFWFRXUWHUUHGLQLWVEDODQFLQJRIWKHHTXLWLHVE\ PRUWJDJRU RU WKLUG SHUVRQV DUH DIIHFWHG WKHUHE\jl  ,G mOXPSLQJl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j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jV PRUWJDJH WR DQ\RQH  7KH FRQWLQXLQJ HUURU LQ WKH GLVWULFW FRXUWjV GHWHUPLQDWLRQ WKDW WKH HTXLWLHV VHFXULW\ LQWHUHVW JUDQWHG WR 0LWFKHOO &RUS LQ VHYHUDO ZHLJKHGDJDLQVWDOORZLQJ0LWFKHOO$XWRPRWLYHWRUHO\RQWKH FDWHJRULHVRISHUVRQDOSURSHUW\GLGQRWWUDQVIHUWKHPRUWJDJH H[FHSWLRQ WR WKH PHUJHU UXOH WR IDYRU WKH GHEW RZHG WR LWV IURP0LWFKHOO$XWRPRWLYH SDUHQWFRPSDQ\RYHU86/jVMXGJPHQWOLHQ 7KHH[SUHVVLQWHQWLRQWRNHHSWKH/DPRQWPRUWJDJHDOLYH % /HY\ ZDVVHWIRUWKLQWKHTXLWFODLPGHHGLWVHOI$VWKHGLVWULFWFRXUW H[SODLQHGKRZHYHUWKHH[FHSWLRQWRPHUJHULVLQWXUQVXEMHFW 7KH GLVWULFW FRXUW KHOG WKDW ZLWK WKH H[WLQJXLVKPHQW RI WR HTXLWDEOH FRQVLGHUDWLRQ RI LWV HIIHFW RQ WKH ULJKWV RI WKH 0LWFKHOO&RUSjVVHFXULW\LQWHUHVW86/jVsXQH OHY\ PRUWJDJRURUDWKLUGSDUW\ RQWKH&ODUHIDFLOLW\DQGLWVJDUQLVKPHQWRIUHQWVSDLGRQWKDW IDFLOLW\ ZRXOG EH VXVWDLQHG DQG HQIRUFHG  $OWKRXJK WKH )RUH[DPSOHWKHUHZLOOEHQRPHUJHUmZKHUHWRGHFUHHD 0LWFKHOOGHIHQGDQWVIDXOWWKHGLVWULFWFRXUWIRUIDLOLQJWRVWDWH PHUJHU ZRXOG FDXVH LQMXVWLFH RU YLRODWH HTXLWDEOH LWVUHDVRQVIRUXSKROGLQJWKHOHY\DJDLQVWWKH&ODUHSURSHUW\ SULQFLSOHVDVLVJHQHUDOO\WKHFDVHZKHUHWKHFRQIOLFWLQJ LWVFODLPVRIHUURUDUHZLWKRXWPHULW ULJKWV RI D WKLUG SHUVRQ KDYH LQWHUYHQHGl    &s6 0RUWJDJHV†/LNHZLVHWKHH[FHSWLRQWRWKHPHUJHU  8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 1R 1R 8QLWHG6WDWHV/HDWKHU,QFY0LWFKHOO 0DQXIDFWXULQJ*URXS,QFHWDO 0DQXIDFWXULQJ*URXS,QFHWDO

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j H[SUHVVHG 7UXVW&RY)DUPZDOG'HYHORSPHQW&RUS1:G LQWHQW FDQQRW EH HQIRUFHG LQ OLJKW RI HTXLWDEOH  0LFK$SS  DQG&ODUNY)HGHUDO/DQG%DQNRI FRQVLGHUDWLRQV$OORZLQJDQH[FHSWLRQWR>WKH@PHUJHU 6W3DXO1:G 0LFK$SS  WRDUJXHWKDW UXOHLQWKLVLQVWDQFHZRXOGGRJUDYHLQMXVWLFH6XFKD 86/ LV QRW D mWKLUG SDUW\l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j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jV MXGJPHQW ZDV QRW H[SUHVVO\ PDGH SURSHUW\WRSUHYHQWLWIURPEHLQJVROGDWEHORZPDUNHW VXEMHFWWR0LWFKHOO&RUSjVVHFXULW\LQWHUHVWLQWKHSHUVRQDO YDOXH,QVXFKFLUFXPVWDQFHVmLWZRXOGEHDEVXUGIRUD SURSHUW\ SURPLVVRU\ QRWHV RU WKH /DPRQW PRUWJDJH PRUWJDJHHWRGHVWUR\KHUVHQLRUOLHQZKLFKZRXOG $OWKRXJK0LWFKHOO&RUSDVVHUWHGWKDWLWKDGDVXSHULRUFODLP RQO\ EHQHILW MXQLRU OLHQKROGHUV DQG WKHUHE\ SUHFOXGH WRWKHPRUWJDJHEHIRUH86/OHYLHGDJDLQVWWKHUHDOSURSHUW\ FROOHFWLRQRIWKHGHEWRZHGKHUl%\HUOHLQ>1:G QRWLFH RI WKLV FODLP LV QRW DNLQ WR WKH OLHQKROGHUVj H[SUHVV DW@,QWKHSUHVHQWFDVH>0LWFKHOO$XWRPRWLYH@LVQRW NQRZOHGJH RI WKH ILUVW PRUWJDJHHjV VXSHULRU ULJKWV LQ LQWKHSRVLWLRQRIDPRUWJDJHHWU\LQJWRSURWHFWLWVHOIIURP )DUPZDOGDQG&ODUN MXQLRU OLHQKROGHUV RI WKH /DPRQW 'HIHQGDQWV  LW LV DWWHPSWLQJWRSURWHFWLWVHOIIURPKDYLQJWRSD\DGHEWLW 1H[W0LWFKHOO&RUSFODLPVLWVULJKWVVKRXOGEHSURWHFWHG DFNQRZOHGJHVRZLQJWR3ODLQWLII DVDmWKLUGSDUW\lEHFDXVHLWLVWKHHQWLW\mPRVWDIIHFWHGE\ PHUJHURUQRQPHUJHUl,QIDFW86/LVHTXDOO\DIIHFWHGE\