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

7+( 3$,17,1* &203$1< ; 3HWLWLRQHU  &URVV5HVSRQGHQW   1RV  Y !   1$7,21$/ /$%25 5(/$7,216  %2$5'  5HVSRQGHQW  &URVV3HWLWLRQHU   1 2Q3HWLWLRQIRU5HYLHZDQG&URVV$SSOLFDWLRQIRU (QIRUFHPHQWRIDQ2UGHU RIWKH1DWLRQDO/DERU5HODWLRQV%RDUG 1RV &$  &$ &$  &$ $UJXHG 2FWREHU 'HFLGHGDQG)LOHG )HEUXDU\

7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl ILOHG RQ )HEUXDU\   2Q sXQH   WKH FRXUW GHVLJQDWHG WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ

  7KH3DLQWLQJ&RY1/5% 1RV

%HIRUH 6,/(5DQG&2/(&LUFXLWsXGJHV 67$))25' 'LVWULFWsXGJH

BBBBBBBBBBBBBBBBB &2816(/ $5*8(' %RQQLH,2j1HLO7+20621+,1(&ROXPEXV 2KLR IRU 3HWLWLRQHU  )UHGHULFN & +DYDUG 1$7,21$/ /$%25 5(/$7,216 %2$5' $33(//$7( &2857 %5$1&+:DVKLQJWRQ'&IRU5HVSRQGHQW21%5,() 'DQLHO s %UDNH 6&277 6&5,9(1  :$+2)) &ROXPEXV2KLRIRU3HWLWLRQHU)UHGHULFN&+DYDUG$LOHHQ $ $UPVWURQJ sHIIUH\ +RURZLW] 1$7,21$/ /$%25 5(/$7,216%2$5'$33(//$7( &2857%5$1&+ :DVKLQJWRQ'&IRU5HVSRQGHQW BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 5 *8< &2/( s5 &LUFXLW sXGJH  7KH 3DLQWLQJ &RPSDQ\ D FORVHO\ KHOG 2KLR FRUSRUDWLRQ DSSHDOV D 0DUFK'HFLVLRQDQG2UGHURIWKH1DWLRQDO/DERU 5HODWLRQV %RDUG WKH m%RDUGl  ZKLFK IRXQG 7KH 3DLQWLQJ &RPSDQ\OLDEOHIRUHQJDJLQJLQVHYHUDOFRXQWVRIDQWLXQLRQ DFWLYLW\ LQ YLRODWLRQ RI 6HFWLRQV  D   DQG  D   RI WKH 1DWLRQDO /DERU 5HODWLRQV $FW WKH m1/5$l RU WKH m$FWl ZKLFKFRUUHVSRQGVWR6HFWLRQV D  DQG  RI7LWOH RI WKH 8QLWHG 6WDWHV &RGH   5HVSRQGHQW FURVVDSSHDOV VHHNLQJ HQIRUFHPHQW RI WKH %RDUGjV GHFLVLRQ  )RU WKH IROORZLQJUHDVRQVWKLV&RXUW(1)25&(6WKHGHFLVLRQRIWKH %RDUG

7KH +RQRUDEOH :LOOLDP 6WDIIRUG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI )ORULGD VLWWLQJ E\ GHVLJQDWLRQ  7KH3DLQWLQJ&RY1/5% 1RV 1RV 7KH3DLQWLQJ&RY1/5% 

LV VXEVWDQWLDO HYLGHQFH LQ VXSSRUW RI WKH %RDUGjV , GHWHUPLQDWLRQ 7KH 3DLQWLQJ &RPSDQ\ m73&l  LV DQ LQWHULRU SDLQWLQJ 7R PDNH D SULPD IDFLH FDVH WKDW D OD\RII ZDV EDVHG RQ FRQWUDFWRU ZKROO\ RZQHG E\ WKUHH EURWKHUV ZKR DUH DOVR SURWHFWHGDFWLYLW\WKH*HQHUDO&RXQVHOPXVWSURYHWKDWmDQWL RIILFHUV RI WKH FRUSRUDWLRQ  sHII $VPDQ SUHVLGHQW  7HUU\ XQLRQ DQLPXV SDUWLDOO\ PRWLYDWHG RU FRQWULEXWHG WR WKH $VPDQ YLFHSUHVLGHQW DQG'DYLG$VPDQ YLFHSUHVLGHQWDQG GHFLVLRQWROD\RIIl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jV XQLRQV73&jVZRUNIRUFHDVDZKROHLVQRWXQLRQL]HGDQG FRQFOXVLRQWKDWWKHUHZDVDSULPDIDFLHYLRODWLRQ73&DUJXHV 73&LVQRWDSDUW\WRDFROOHFWLYHEDUJDLQLQJDJUHHPHQW2Q WKDW LW KDG D KHDOWK\ LQWHUDFWLRQ ZLWK XQLRQV DQG GLG QRW DWOHDVWRQHRFFDVLRQsHII$VPDQSUHVLGHQWRI73&SXEOLFO\ GLVFULPLQDWHRQWKDWEDVLV7KLVDUJXPHQWFDQQRWVXFFHHGRQ VWDWHG WKDW 73& ZRXOG FHDVH WR H[LVW LI LWV ZRUNIRUFH DSSHDOEHFDXVHWKH%RDUGj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jVUHMHFWLRQRI73&jVDUJXPHQWDV SUHWH[WXDODOVRKDVDEDVLVLQVXEVWDQWLDOHYLGHQFH QHLWKHUD 73&jVLQWHUDFWLRQZLWKXQLRQVZDVWKHVXEMHFWRIKHDULQJV VHQLRULW\EDVHG SROLF\ QRU D VWDWXVEDVHG SROLF\ ZDV IDLUO\ LQIURQWRIWKH%RDUG$IWHUDKHDULQJE\$GPLQLVWUDWLYH/DZ DSSOLHGWRWKH)UDQNOLQ)XUQDFHSURMHFWDQGDVHQLRULW\EDVHG sXGJH 6WHSKHQ s *URVV WKH %RDUG FRQFOXGHG WKDW 73& RUDVWDWXVEDVHGSROLF\KDGQRWEHHQDSSOLHGSUHYLRXVO\DWWKH HQJDJHG LQ VHYHUDO DQWLXQLRQ DFWLYLWLHV LQ YLRODWLRQ RI WKH )UDQNOLQ)XUQDFHMREVLWH%DVHGRQWKRVHIDFWXDOILQGLQJV 1/5$73&DSSHDOVWKH%RDUGjVFRQFOXVLRQVUHODWLQJWRWZR ZKLFK DUH VXSSRUWHG E\ VXEVWDQWLDO HYLGHQFH WKH %RDUGjV IDFWXDOVFHQDULRV WKHSDLQWLQJRIWKH2KLR6WDWH+RXVHDQG GHFLVLRQVKRXOGQRWEHGLVWXUEHG WKH SDLQWLQJ RI WKH <RXWK 'HWHQWLRQ &HQWHU LQ )UDQNOLQ )XUQDFH2KLR ,,, 3DLQWLQJWKH2KLR6WDWH+RXVH 8QGHU WKH VWDQGDUGV RI UHYLHZ HPSOR\HG KHUH 73& LV XQDEOH WR VXVWDLQ DQ\ RI LWV DVVLJQPHQWV RI HUURU 7KH6WDWHRI2KLRKLUHG6KRRN%XLOGLQJ*URXS m6%*l DV &RQVHTXHQWO\3HWLWLRQHUjVSHWLWLRQIRUUHYLHZLV'(1,(' WKHJHQHUDOFRQWUDFWRUIRUWKHUHIXUELVKLQJRIWKH6WDWH+RXVH 5HVSRQGHQWjV FURVVDSSOLFDWLRQ IRU HQIRUFHPHQW LV 6%* LQ WXUQFRQWUDFWHGZLWK73&IRUPRVWRIWKHSDLQWLQJ *5$17(' DQGWKH%RDUGjVGHFLVLRQDQGRUGHULVKHUHE\ ZRUN6%*VHWWKHKRXUVRIZRUNDQGUHTXLUHGWKDWWKH73& (1)25&(' SDLQWHUV ZHDU KDUG KDWV DQG VDIHW\ ERRWV  $OWKRXJK 73& SUHIHUUHGWKDWLWVSDLQWHUVZHDUZKLWHVKLUWVDQGZKLWHRYHUDOOV  7KH3DLQWLQJ&RY1/5% 1RV 1RV 7KH3DLQWLQJ&RY1/5% 

WKH RQO\ GUHVV FRGH WKDW 73& URXWLQHO\ HQIRUFHG ZDV LWV DJUHHPHQWZLWK436DIWHURQO\WZRGD\VRISHUIRUPDQFH7KH SURKLELWLRQ RI FORWKLQJ ZLWK REVFHQH ODQJXDJH RU LPDJHV %RDUGDOVRIRXQGWKDWDVDUHVXOWRIZHDULQJXQLRQ7VKLUWV 6HYHUDO73&SDLQWHUVZRUHFRORUHGVKLUWVDQGVKLUWVEHDULQJ 'XQQDQG/DZVRQZHUHGLVPLVVHGIURPZRUNRQsDQXDU\ ORJRV DW WKH 6WDWH +RXVH SURMHFW DQG WKH\ ZHUH QHLWKHU DQG WKH FRQWUDFW ZLWK 436 ZDV FDQFHOOHG E\ 0RQGD\ GLVFLSOLQHG IRU ZHDULQJ WKRVH VKLUWV QRU RUGHUHG WR UHPRYH sDQXDU\ 73&UHVSRQGVWKDWEHFDXVH436QHYHUKDG WKRVHVKLUWV ZRUNHUVj FRPSHQVDWLRQ LQVXUDQFH WKH WHUPLQDWLRQ RI WKH FRQWUDFWZDVYDOLG73&jVSRVLWLRQZRXOGEHYLDEOHLI'XQQ ,Q HDUO\   VHYHUDO GHOD\V FDXVHG E\ RWKHU 6%* DQG/DZVRQZHUHVHQWKRPHHDUO\IURPZRUNRQ0RQGD\WKH VXEFRQWUDFWRUVSUHYHQWHG73&IURPSURFHHGLQJRQVFKHGXOH VDPHGD\WKDW73&UHDOL]HGWKDW436GLGQRWKDYHZRUNHUVj ZLWKLWVSDLQWLQJRIWKH2KLR6WDWH+RXVH7RWLPHO\FRPSOHWH FRPSHQVDWLRQLQVXUDQFH%XW73&VHQW'XQQDQG/DZVRQ WKH SDLQWLQJ 73& HQWHUHG D VXEFRQWUDFW DJUHHPHQW ZLWK KRPH HDUO\ RQ )ULGD\ EHIRUH LW NQHZ RI 436jV ODFN RI 4XDOLW\ 3DLQWLQJ 6HUYLFHV m436l  D VROH SURSULHWRUVKLS LQVXUDQFH  %HFDXVH 73& GLG QRW KDYH D YDOLG UHDVRQ IRU RZQHG E\ 0LFKDHO *URQGRQ  'DYLG $VPDQ H[SODLQHG WR WHUPLQDWLQJ WKH 436 FRQWUDFW XQWLO 0RQGD\ 'XQQ DQG *URQGRQ RYHU WKH SKRQH WKDW KH ZDQWHG IRXU SDLQWHUV ZKR /DZVRQFDQUHFRYHUFRPSHQVDWRU\ZDJHSD\PHQWVIRUWKHLU ZRXOGZHDUZKLWHVKLUWVZKLWHRYHUDOOVZRUNERRWVDQGKDUG PLVVHGZRUNLIDQ\RQ)ULGD\ KDWV  $VPDQ DOVR VWDWHG WKDW KH DQWLFLSDWHG QHHGLQJ 436 SDLQWHUV IRU WZR ZHHNV DQG 73& ZRXOG SD\ 436 WKH ($VPDQjV7KUHDWWR5HPRYHWKH8QLRQ76KLUWRU SUHYDLOLQJ ZDJH DV ZHOO DV DQ DGGLWLRQDO PDUNXS LQ DQ /HDYHWKHsRE XQVSHFLILHGDPRXQW*URQGRQDJUHHGWRDOORIWKRVHWHUPV 7KH%RDUGFRQFOXGHGWKDW$VPDQjVFRPPDQGWKDW'XQQ )ROORZLQJKLVFRQYHUVDWLRQZLWK'DYLG$VPDQ*URQGRQ UHPRYH WKH XQLRQ 7VKLUW RU OHDYH WKH MRE FRQVWLWXWHG D WHOHSKRQHGIRXUSDLQWHUV 'DYLG'XQQ5HQD/DZVRQ/HUR\ 6HFWLRQ D  YLRODWLRQEHFDXVHLWZDVDQXQODZIXOWKUHDWRI $OOHQ+XQWDQG6FRWW$OOHQ+XQWWRLQIRUPWKHPWKDWKHKDG GLVFKDUJH  :KLOH 73& GLVSXWHV WKH %RDUGjV FRQFOXVLRQ LW ZRUNIRUWKHP'XQQDQG/DZVRQEHORQJHGWR3DLQWHUV/RFDO GRHVQRWRIIHUDFRJHQWUHDVRQWRVXSSRUWLWVSRVLWLRQ5DWKHU 8QLRQ m/RFDOl ,QDPHHWLQJODWHUWKDWQLJKWDW 73& SUHPLVHV LWV GLVDJUHHPHQW VROHO\ RQ LWV PLVWDNHQ *URQGRQjVKRXVHZLWKWKRVHIRXUSDLQWHUV*URQGRQH[SODLQHG FRQWHQWLRQWKDW'XQQZDVQRWDQHPSOR\HHRI73&RU436 WKDWWKH\ZHUHJRLQJWRZRUNIRU73&DWWKH6WDWH+RXVH WKH\ $V GLVFXVVHG DERYH WKH %RDUGjV IDFWXDO FRQFOXVLRQV WKDW VKRXOGUHSRUWWR73&VXSHUYLVRUV WKH\KDGWRDUULYHE\  'XQQZDVQRWDQLQGHSHQGHQWFRQWUDFWRUDQGKHZDVMRLQWO\ DP WKH\KDGWRZHDUZKLWHSDQWVDQGZKLWHVKLUWVZLWKRXW HPSOR\HG E\ 73& DQG 436 DUH VXSSRUWHG E\ VXEVWDQWLDO ORJRV DQGWKH\KDGWRHDFKEULQJDSDLQWEUXVKZLWKWKHP HYLGHQFH7KHUHIRUHWKHRQO\EDVLVIRU73&jVDSSHDORIWKLV SRLQWKDVHYDSRUDWHG 7KH436VXEFRQWUDFWVWDUWHGRIIVPRRWKO\7KHIRXU436 SDLQWHUVDUULYHGDWWKH6WDWH+RXVHSURPSWO\DWWKHVWDUWRI )/D\LQJ2IIWKH)RXU8QLRQ3DLQWHUV ZRUNRQsDQXDU\ GUHVVHGLQZKLWHVKLUWVDQGZKLWH SDQWV:KHQWKH\DUULYHG73&SURYLGHGWKHPZLWKWKHWRROV 7XUQLQJ WR WKH )UDQNOLQ )XUQDFH MRE 73& DSSHDOV WKH DQG HTXLSPHQW QHHGHG IRU SDLQWLQJ LQFOXGLQJ SDLQW SDLQW %RDUGjV GHFLVLRQ EHFDXVH L  WKH *HQHUDO &RXQVHO GLG QRW UROOHUVSXVKFDUWVDQGGURSFORWKV73&DOVRSDLUHGHDFK436 PHHWLWVEXUGHQWROD\RXWDSULPDIDFLHFDVHRIDQWLXQLRQ SDLQWHU ZLWK D 73& SDLQWHU DQG WKHQ GLUHFWHG HDFK SDLU RI DQLPXV DQG LL  73& ZRXOG KDYH ODLG RII WKH )RXU 8QLRQ SDLQWHUVZKHUHWRSDLQW7KHIRXU436SDLQWHUVZRUNHGDIXOO 3DLQWHUVUHJDUGOHVVRIWKHLULQYROYHPHQWZLWKSURWHFWHGXQLRQ WHQKRXUGD\DWWKH6WDWH+RXVHZLWKRXWLQFLGHQW DFWLYLW\73&jVILQDOEDVLVIRUDSSHDODOVRIDLOVEHFDXVHWKHUH  7KH3DLQWLQJ&RY1/5% 1RV 1RV 7KH3DLQWLQJ&RY1/5% 

XSRQUHYLHZRIWKHIDFWVVXEVWDQWLDOHYLGHQFHVXSSRUWVWKH 7KHVHHGVRIFRQIOLFWZHUHSODQWHGWKDWGD\KRZHYHU7KH FRQFOXVLRQ WKDW 'XQQ DQG /DZVRQ ZHUH QRW LQGHSHQGHQW EXVLQHVV PDQDJHU DQG DQ RUJDQL]HU IRU /RFDO  YLVLWHG FRQWUDFWRUV 'XQQDQG/DZVRQDWWKH6WDWH+RXVH7KRVHIRXUPHWDJDLQ DIWHUZRUNWKDWGD\DQGDWWKDWWLPHWKH/RFDOEXVLQHVV &73&DQG436$VsRLQW(PSOR\HUV PDQDJHU UHTXHVWHG WKDW 'XQQ DQG /DZVRQ DVVLVW KLP LQ XQLRQL]LQJ73&E\ZHDULQJXQLRQ7VKLUWVWRZRUNWKHQH[W ,Q LWV QH[W DWWHPSW WR H[FOXGH 'XQQ DQG /DZVRQ IURP GD\  'XQQ DQG /DZVRQ DJUHHG WR ZHDU WKH XQLRQ 7VKLUWV FRYHUDJHXQGHUWKH1/5$73&DUJXHVWKDWLWZDVQRWDMRLQW GHVSLWH*URQGRQjVLQVWUXFWLRQWRZHDUSODLQZKLWHVKLUWV HPSOR\HUZLWK436DQGWKHUHIRUHLWGLGQRWHPSOR\'XQQRU /DZVRQ7KLVDUJXPHQWIDLOV 7URXEOHVWDUWHGWKHQH[WGD\0LGPRUQLQJsHII$VPDQ GLVFRYHUHG/DZVRQDQGWKHQ'XQQZHDULQJXQLRQ7VKLUWVDQG 7KH OHJDO VWDQGDUG IRU GHWHUPLQLQJ ZKHWKHU D MRLQW RUGHUHG WKHP WR UHPRYH WKHLU VKLUWV LPPHGLDWHO\  /DZVRQ HPSOR\HUUHODWLRQVKLSH[LVWVLVmZKHUHWZRRUPRUHHPSOR\HUV FRPSOLHGZLWK$VPDQjVGHPDQGZLWKRXWPXFKSURWHVW'XQQ H[HUWVLJQLILFDQWFRQWURORYHUWKHVDPHHPSOR\HHVZKHUH RQWKHRWKHUKDQGGLGQRWFRRSHUDWH,QIDFW$VPDQUHWXUQHG IURP WKH HYLGHQFH LW FDQ EH VKRZQ WKDW WKH\ VKDUH RU FR WR'XQQjVZRUNSODFHWRILQGWKDW'XQQZDVVWLOOZHDULQJWKH GHWHUPLQH WKRVH PDWWHUV JRYHUQLQJ HVVHQWLDO WHUPV DQG XQLRQ 7VKLUW  $W WKDW SRLQW $VPDQ WROG 'XQQ WR HLWKHU FRQGLWLRQVRIHPSOR\PHQWWKH\FRQVWLWXWHµMRLQWHPSOR\HUVj UHPRYHWKHVKLUWRUOHDYHWKHMRE'XQQVWLOOGLGQRWWDNHRII ZLWKLQWKHPHDQLQJRIWKH1/5$l&DUULHU&RUSY1/5% WKHVKLUW'XQQWKHQFDOOHG/RFDODQGDIWHUZDUGVVSRNH  )G   WK &LU    TXRWLQJ 1/5% Y ZLWK RWKHU SDLQWHUV DERXW WKH LQFLGHQW  /DWHU \HW $VPDQ %URZQLQJ)HUULV,QGXVRI3HQQV\OYDQLD,QF )G IRXQG'XQQZHDULQJWKHXQLRQ7VKLUWDQGWDONLQJZLWKWKH  G&LU  sRLQWHPSOR\HUVWDWXVLVDIDFWXDOPDWWHU RWKHUSDLQWHUV7KLVWLPH'XQQWROG$VPDQWKDWKHKDGFDOOHG IRUWKH%RDUGWRGHFLGHEDVHGRQVXEVWDQWLDOHYLGHQFH6HH WKHXQLRQDQG$VPDQWROG'XQQWRJHWEDFNWRZRUN &DUULHU&RUS)GDW (DUO\ WKDW DIWHUQRRQ /RFDO  RIILFLDOV DUULYHG DW WKH $OWKRXJK73&FRQWHQGVWKDWLWZDVQRWDMRLQWHPSOR\HURI 6WDWH +RXVH DQG VSRNH ZLWK sHII $VPDQ  7KH /RFDO  'XQQDQG/DZVRQVXEVWDQWLDOHYLGHQFHVXSSRUWVWKH%RDUGjV RIILFLDOVUHFRUGHGWKHLUFRQYHUVDWLRQZLWK$VPDQWKURXJKD FRQFOXVLRQ WKDW 73& DQG 436 MRLQWO\ HPSOR\HG 'XQQ DQG FRQFHDOHGWDSHUHFRUGHU'XULQJWKDWFRQYHUVDWLRQ$VPDQ /DZVRQ  7KH %RDUG IRXQG WKDW 73& H[HUWHG FRQWURO RYHU EURXJKWXS73&jVGUHVVFRGHUHPDUNLQJWKDWWKH73&mGUHVV 'XQQDQG/DZVRQE\SDLULQJWKHPZLWK73&HPSOR\HHV E\ FRGH ZRXOG EH LI ZHjUH QRW XQLRQ ZH FDQjW ZHDU XQLRQ SURYLGLQJHYHU\VXSSO\QHHGHGWRGRWKHMRE DQGE\PDNLQJ FORWKLQJl WKHP SHUIRUP WKH H[DFW VDPH ZRUN DV DOO RWKHU 73& HPSOR\HHV VXEMHFW WR WKH VDPH PDQDJHPHQW RYHUVLJKW  ,Q /DWHUWKDWGD\sHII$VPDQORFDWHGWKHIRXU436SDLQWHUV VKRUWWKLVHYLGHQFHRI73&jVFRQWURORYHU'XQQDQG/DZVRQ DQG WROG WKHP WKDW 73& QR ORQJHU QHHGHG 436 DV D LV VXEVWDQWLDO DQG WKH %RDUGjV FRQFOXVLRQ WKDW 'XQQ DQG VXEFRQWUDFWRU EHFDXVH 73& ZDV RQ VFKHGXOH ZLWK WKH /DZVRQ ZHUH HPSOR\HG E\ 73& DV ZHOO DV 436 PXVW EH SDLQWLQJ  $VPDQ WROG WKHP WR VWRS ZRUNLQJ DQG OHDYH WKH DIILUPHG 6WDWH +RXVH ZRUN VLWH  $W DERXW WKLV VDPH WLPH $VPDQ WHOHSKRQHG*URQGRQWRFDQFHOWKHFRQWUDFWEHFDXVHWKHIRXU '7HUPLQDWLRQRIWKH436&RQWUDFW PHQmZHUHQjWZRUNLQJRXWl$VPDQHODERUDWHGWKDW/DZVRQ ZDVVORSS\DQGWKDW'XQQDQG/DZVRQZRUHXQLRQ7VKLUWV 73& DOVR FKDOOHQJHV WKH %RDUGjV FRQFOXVLRQ WKDW 73& LQVWHDGRISDLQWHUVZKLWHV$VPDQIXUWKHUFRPSODLQHGWKDWWKH HQJDJHGLQDQWLXQLRQDFWLYLW\E\WHUPLQDWLQJLWVVXEFRQWUDFWRU  7KH3DLQWLQJ&RY1/5% 1RV 1RV 7KH3DLQWLQJ&RY1/5% 

XQLRQ7VKLUWLQFLGHQWOHGWRDFRQIURQWDWLRQZLWK/RFDO )G WK&LU  m>7@KH%RDUGjVLQWHUSUHWDWLRQ RIILFLDOV DQG LW FDXVHG 'XQQ WR FHDVH SDLQWLQJ DQG LQVWHDG RIWKH1/5$PXVWEHXSKHOGLIUHDVRQDEO\GHIHQVLEOHl VHH LQWHUUXSWRWKHU73&SDLQWHUV:LWKRXW73&jVEXVLQHVV436 DOVR6DQGXVN\0DOO&RY1/5%)G   WK WHUPLQDWHGWKHHPSOR\PHQWRIWKHIRXUSDLQWHUV &LU %HFDXVHWKH+ROO\)DUPVKROGLQJUHTXLUHVWKDW WKH&KHYURQVWDQGDUGDSSO\RQO\WRWKH%RDUGjVLQWHUSUHWDWLRQV sHII DQG 'DYLG $VPDQ PHW ZLWK *URQGRQ RQ RU DERXW RIWKH1/5$WKLV&LUFXLWjVKLVWRULFDOGHQRYRUHYLHZUHPDLQV sDQXDU\$WWKHPHHWLQJ*URQGRQVLJQHG73&jVVWDQGDUG LQIRUFHIRUWKH%RDUGjVOHJDOFRQFOXVLRQVWKDWGRQRWLQWHUSUHW IRUPFRQWUDFWDQG73&SDLG436WKHZDJHVWKH WKH1/5$6HH0HLMHU,QFY1/5%)G  IRXU436SDLQWHUVHDUQHGIRUKRXUVSOXVDPDUNXS WK &LU    H[SODLQLQJ WKDW WKH &RXUW ZLOO XSKROG WKH 7KH$VPDQVDOVRUHTXHVWHGWKDW*URQGRQSURGXFHZRUNHUVj %RDUGjVLQWHUSUHWDWLRQRIWKH$FWLILWLVUHDVRQDEO\GHIHQVLEOH FRPSHQVDWLRQLQVXUDQFHIRUPVZKLFK2KLRODZUHTXLUHVRI DQGWKH&RXUWZLOOUHYLHZRWKHUTXHVWLRQVRIODZGHQRYR  VWDWHVXEFRQWUDFWRUV,QYLRODWLRQRI2KLRODZ436GLGQRW FDUU\ZRUNHUVjFRPSHQVDWLRQLQVXUDQFH %:KHWKHU'XQQ$QG/DZVRQ:HUH436(PSOR\HHV %DVHG XSRQ WKHVH IDFWV WKH %RDUG FRQFOXGHG WKDW 73& 73&DUJXHVWKDW'XQQDQG/DZVRQFDQQRWUHFRYHUXQGHU YLRODWHGWKH1/5$73&YLRODWHG6HFWLRQ D  RIWKH$FW WKH1/5$EHFDXVHWKH\ZHUHmLQGHSHQGHQWFRQWUDFWRUVlZKR EHFDXVH sHII $VPDQ RUGHUHG 'XQQ DQG /DZVRQ WR UHPRYH DUHH[FOXGHGIURPSURWHFWLRQXQGHUWKH$FW6HH 86& WKHLU XQLRQ 7VKLUWV ZKLOH VLPXOWDQHRXVO\ SHUPLWWLQJ RWKHU †   H[FOXGLQJLQGHSHQGHQWFRQWUDFWRUVIURPWKH$FW  HPSOR\HHVWRZHDUFRORUHG7VKLUWVZLWKORJRV7KH%RDUG ,QVXSSRUWRILWVSRVLWLRQ73&FRQWHQGVWKDWXQGHUWKHmULJKW DOVRFRQFOXGHGWKDW73&YLRODWHG6HFWLRQ D  DQG  RI WR FRQWURO WHVWl IRU GHWHUPLQLQJ ZKHWKHU D ZRUNHU LV DQ WKH$FWE\WHUPLQDWLQJWKH436FRQWUDFWGXHWR/DZVRQjVDQG HPSOR\HHRUDQ LQGHSHQGHQWFRQWUDFWRU'XQQDQG/DZVRQ 'XQQjVXQLRQDFWLYLW\)LQDOO\WKH%RDUGFRQFOXGHGWKDWsHII ZHUHLQGHSHQGHQWFRQWUDFWRUV2QDSSHDOWKH%RDUGUHVSRQGV $VPDQj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j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m/RFDOl  /DZVRQ H[KLELWHG DQ\ PHDQLQJIXO HQWUHSUHQHXULDO RU ZKLFKKDGMXULVGLFWLRQRYHU)UDQNOLQ)XUQDFHWKDWLWZRXOG SURSULHWDU\FKDUDFWHULVWLFVWKDWZRXOGOHDGRQHWREHOLHYHWKDW KLUH VRPH /RFDO  SDLQWHUV IRU WKH MRE  :KHQ &RXUWV WKH\FRQWUROOHGWKHWHUPVRIWKHZRUNWKH\FRPSOHWHG,QVXP QHHGHG DGGLWLRQDO MRXUQH\PHQ SDLQWHUV IRU WKH )UDQNOLQ  7KH3DLQWLQJ&RY1/5% 1RV 1RV 7KH3DLQWLQJ&RY1/5% 

LQIHUHQFHVDQGFUHGLELOLW\GHWHUPLQDWLRQVHYHQLIZHZRXOG )XUQDFH VLWH KH KLUHG IRXU XQLRQ SDLQWHUV  &KDUOHV &ULVS FRQFOXGHGLIIHUHQWO\XQGHUGHQRYRUHYLHZ6HH,77$XWR :DUUHQ+XOO5REHUW0HDGHDQG0DUN3UDWW FROOHFWLYHO\WKH )GDW .HQWXFN\0D\ )GDW 1/5%Y m)RXU8QLRQ3DLQWHUVl ZKRPKHKDGPLVWDNHQO\DVVXPHG 0HDG&RUS)G WK&LU  VHHDOVR1/5%Y ZHUHHLWKHUPHPEHUVRI/RFDORUPHPEHUVRIDIRUHLJQ 7D\ORU0DFK3URGV,QF)G WK&LU  XQLRQZKRKDGUHFHLYHGFRQVHQWIURP+D\VOLSWRDFFHSWWKH m:HDIIRUGHYHQPRUHGHIHUHQFHWR%RDUGGHWHUPLQDWLRQVRI MRE FUHGLELOLW\DQGZLOOQRWQRUPDOO\VHWDVLGHWKH%RDUGjVFKRLFH EHWZHHQFRQIOLFWLQJWHVWLPRQ\l  7KH)RXU8QLRQ3DLQWHUVEHJDQZRUNRQ'HFHPEHU  6KRUWO\ DIWHU WKHLU DUULYDO WKH\ EHJDQ WR GLVFXVV WKH 7KLV&LUFXLWIROORZVWZRVHSDUDWHVWDQGDUGVIRUUHYLHZLQJ DGYDQWDJHVRIXQLRQPHPEHUVKLSDPRQJWKHPVHOYHVDQGZLWK WKH%RDUGjVGHFLVLRQVRQTXHVWLRQVRIODZ WKH&RXUWHQJDJHV RWKHU 73& SDLQWHUV  &RXUWV KHDUG WKHVH FRQYHUVDWLRQV DQG LQWKHGHIHUHQWLDO&KHYURQUHYLHZZKHQWKH%RDUGLQWHUSUHWV PDGH QR HIIRUW WR VLOHQFH WKHP  $OVR QRW ORQJ LQWR WKH WKH1/5$DQGWKH&RXUWUHYLHZVWKH%RDUGjVOHJDOFRQFOXVLRQ SURMHFW &RXUWV IRUPHG RSLQLRQV RI HDFK RI WKHLU SDLQWLQJ GHQRYRZKHQDQLQWHUSUHWDWLRQRIWKH1/5$LVQRWDWLVVXH VNLOOV&RXUWVEHOLHYHGWKDW&ULVS+XOODQG3UDWWZHUHVXE 7KH%RDUGjVLQWHUSUHWDWLRQVRIWKH1/5$VKRXOGEHUHYLHZHG SDUSDLQWHUVDQGKHEHJDQFULWLFL]LQJWKHLUZRUN,QFRQWUDVW DFFRUGLQJ WR WKH WZRVWHS SURFHVV DUWLFXODWHG LQ &KHYURQ &RXUWVUHVSHFWHG0HDGHjVZRUNDQGWKRXJKWWKDW0HDGHZDV 86$,QFY1DWXUDO5HVRXUFHV'HIHQVH&RXQFLO,QF DQRXWVWDQGLQJSDLQWHU'HVSLWHKLVGLIIHULQJDVVHVVPHQWVRI 86   +ROO\)DUPV&RUSY1/5% WKH)RXU8QLRQ3DLQWHUV&RXUWVGLGQRWGLVFULPLQDWHEHWZHHQ 86         VHH DOVR 1/5% Y :HEFRU WKHPZKHQKHZDVDVVLJQLQJZRUN 3DFNDJLQJ,QF)G  WK&LU   m+ROO\ )DUPVHVWDEOLVKHVWKHVWDQGDUGRIUHYLHZQRZELQGLQJRQWKH ,Q WKHLU VHFRQG ZHHN RI ZRUN WKH )RXU 8QLRQ 3DLQWHUV FRXUWVRIDSSHDOVLQUHYLHZLQJWKH1/5%jVLQWHUSUHWDWLRQRI OHDUQHG WKDW 73& QHHGHG WKHP WR ZRUN WKH ZHHNHQG RI WKHUHOHYDQWSURYLVLRQVRIWKH1/5$l 8QGHUWKH&KHYURQ 'HFHPEHU  DQG   0HDGH DVNHG &RXUWV DERXW WKH VWDQGDUGRIUHYLHZWKH&RXUWILUVWDVNVmZKHWKHU&RQJUHVV FRQVHTXHQFHV RI QRW DFFHSWLQJ WKDW DVVLJQPHQW DQG &RXUWV KDV GLUHFWO\ VSRNHQ WR WKH SUHFLVH TXHVWLRQ DW LVVXHl VWDWHGWKDWWKHUHZDVDmGDPQJRRGSRVVLELOLW\lWKDWWKH)RXU &KHYURQ  86 DW   :HEFRU  )G DW    ,I 8QLRQ3DLQWHUVZRXOGORVHWKHLUMREVLIWKH\GLGQRWZRUNWKDW &RQJUHVVKDVGLUHFWO\DGGUHVVHGWKHLVVXHWKHQWKH&RXUWPXVW ZHHNHQG JLYHHIIHFWWRWKDWH[SUHVVLRQRIFRQJUHVVLRQDOZLOO&KHYURQ 86DW :HEFRU)GDW ,I&RQJUHVV $WWKHFORVHRIZRUNRQ)ULGD\'HFHPEHUHDFKRIWKH KDVQRWGLUHFWO\VSRNHQRQWKHSUHFLVHTXHVWLRQDWLVVXHWKH )RXU8QLRQ3DLQWHUVKDQGHG&RXUWVDOHWWHUIURPWKHEXVLQHVV &RXUWUHYLHZVWKH%RDUGjVGHFLVLRQVROHO\WRDVVHVVZKHWKHU DJHQW IRU WKH 7UL6WDWH %XLOGLQJ DQG &RQVWUXFWLRQ 7UDGHV WKH %RDUGjV LQWHUSUHWDWLRQ LV EDVHG RQ D SHUPLVVLEOH &RXQFLO  7KH OHWWHUV VWDWHG WKDW HDFK RI WKH )RXU 8QLRQ LQWHUSUHWDWLRQ RI WKH VWDWXWH  &KHYURQ  86 DW  3DLQWHUVZDVRUJDQL]LQJXQLRQDFWLYLW\DWWKH)UDQNOLQ)XUQDFH :HEFRU)GDW 8QGHUWKLVVWDQGDUGWKH%RDUGjV VLWH  &RXUWV UHDG WKH OHWWHUV DQG WKHQ VDLG WKDW KH ZRXOG UHDGLQJRIWKHVWDWXWHQHHGRQO\EHUHDVRQDEOH LWQHHGQRWEH GHOLYHUWKHPWRsHII$VPDQVRWKDW$VPDQFRXOGmZLSHKLVDVV WKH EHVW LQWHUSUHWDWLRQ 6HH +ROO\ )DUPV  86 DW  RQ WKHPl  $IWHU UHDGLQJ WKH OHWWHUV $VPDQ DQG &RXUWV m)RU WKH %RDUG WR SUHYDLO LW QHHG QRW VKRZ WKDW LWV UHDOL]HGIRUWKHILUVWWLPHWKDWWKH)RXU8QLRQ3DLQWHUVGLGQRW FRQVWUXFWLRQLVWKHEHVWZD\WRUHDGWKHVWDWXWH UDWKHUFRXUWV EHORQJWR/RFDODQGWKDWKLULQJWKHPZLWKRXWLQIRUPLQJ PXVWUHVSHFWWKH%RDUGjVMXGJPHQWVRORQJDVLWVUHDGLQJLVD +D\VOLS FRXOG DGYHUVHO\ DIIHFW 73&jV UHODWLRQVKLS ZLWK UHDVRQDEOHRQHl 1/5%Y0DLQ6W7HUUDFH&DUH&WU +D\VOLS  7KH3DLQWLQJ&RY1/5% 1RV 1RV 7KH3DLQWLQJ&RY1/5%

)URPWKDWSRLQWRQWHQVLRQVJUHZEHWZHHQ73&DQGWKH %RDUGjVVHQLRULW\DQDO\VLVQHLWKHUWKHQRQXQLRQ73&SDLQWHUV )RXU8QLRQ3DLQWHUV7KH)RXU8QLRQ3DLQWHUVGLGQRWZRUN DW)UDQNOLQ)XUQDFHZKRUHWDLQHGWKHLUMREVQRUWKHHOHYHQ WKHZHHNHQGRI'HFHPEHUDQG$OVRWKHIROORZLQJ SDLQWHUV WUDQVIHUUHG WR WKH )UDQNOLQ )XUQDFH VLWH EHWZHHQ 0RQGD\ WKH )RXU 8QLRQ 3DLQWHUV EHJDQ GLVWULEXWLQJ SUR sDQXDU\DQGZHUHXQLIRUPO\VHQLRUWRWKH)RXU8QLRQ XQLRQPDWHULDOVWRWKHRWKHUVL[73&SDLQWHUVDWWKH)UDQNOLQ 3DLQWHUV )XUQDFH VLWH  7KH QH[W ZHHN WKH EXVLQHVV PDQDJHU RI 3DLQWHUV /RFDO  DVNHG &RXUWV LI KH FRXOG VSHDN WR WKH ,QOLJKWRIWKH%RDUGjVILQGLQJWKDW&RXUWVjVH[SODQDWLRQIRU 73& HPSOR\HHV DW WKH )UDQNOLQ )XUQDFH VLWH  &RXUWV WKHOD\RIIVZDVmGHPRQVWUDEO\IDOVHlWKH%RDUGFRQFOXGHG FRQVHQWHG  2Q 'HFHPEHU  WKH /RFDO  EXVLQHVV WKDW WKH UHDO UHDVRQ IRU WKH OD\RIIV ZDV WKH )RXU 8QLRQ PDQDJHU GLVWULEXWHG SURXQLRQ PDWHULDOV DQG WROG WKH 3DLQWHUVj XQLRQ PHPEHUVKLS DQG DFWLYLWLHV  7KH %RDUG HPSOR\HHVWRFRQWDFWKLPZLWKDQ\ZRUNSUREOHPVWKDWWKH\ UHMHFWHG 73&jV DWWHPSW WR UHEXW WKLV FRQFOXVLRQ WKURXJK D PD\KDYH$OWKRXJKWKHSDLQWHUVGLGOLWWOHPRUHWKDQOLVWHQWR VKRZLQJWKDWWKH)RXU8QLRQ3DLQWHUVZRXOGKDYHEHHQODLG WKHSUHVHQWDWLRQ&RXUWVLQWHUMHFWHGDWRQHSRLQWWKDWWKHXQLRQ RIIDQ\ZD\IRUSHUIRUPDQFHUHDVRQV$VDUHVXOWRIWKHVH KDGSUHYLRXVO\mVFUHZHGl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jV GHFLVLRQV  ,W LV ZHOO sDQXDU\ &RXUWVUHWXUQHGWRZRUNDQGODLGRIIWKH)RXU HVWDEOLVKHGWKDWZHUHYLHZWKH%RDUGjVIDFWXDOGHWHUPLQDWLRQV 8QLRQ3DLQWHUVXSRQWKHLUDUULYDODWZRUN&RXUWVMXVWLILHGWKH DVZHOODVWKH%RDUGjVDSSOLFDWLRQRIODZWRDSDUWLFXODUVHWRI OD\RIIV RQWKHJURXQGVWKDWZRUNZDVVORZLQJGRZQIURP IDFWVXQGHUDVXEVWDQWLDOHYLGHQFHVWDQGDUG6HH,77$XWRY RWKHU 73& SURMHFWV DQG PRUH VHQLRU HPSOR\HHV ZKR KDG 1/5%)G WK&LU :)%ROLQ&RY HOHYHQWHQVL[DQGILYH\HDUVRIH[SHULHQFHZRXOGEHWDNLQJ 1/5%)G WK&LU  8QGHUWKDWVWDQGDUG WKH)RXU8QLRQ3DLQWHUVjSODFH&RXUWVGLGQRWOD\RIIDQ\ WKH%RDUGjVGHFLVLRQVPXVWEHVXSSRUWHGE\mVXFKUHOHYDQW RWKHUHPSOR\HHV$IWHUOD\LQJRIIWKH)RXU8QLRQ3DLQWHUV HYLGHQFHDVDUHDVRQDEOHPLQGPLJKWDFFHSWDVDGHTXDWHWR &RXUWVFDOOHG73&jVRIILFHWRVXJJHVWWKDW73&ILQGZRUNRQ VXSSRUWDFRQFOXVLRQlDQGmDPHUHVFLQWLOODRIHYLGHQFHlZLOO DQRWKHU SURMHFW IRU WKH )RXU 8QLRQ 3DLQWHUV  'HVSLWH KLV QRWVXIILFHWRVDWLVI\WKLVVWDQGDUG,77$XWR)GDW UHTXHVW73&QHYHUDJDLQKLUHGWKH)RXU8QLRQ3DLQWHUV TXRWLQJ &RQVRO (GLVRQ &R Y 1/5%  86        7KH VXEVWDQWLDO HYLGHQFH VWDQGDUG LV D ORZHU 7KH%RDUGGLGQRWEHOLHYH&RXUWVjVH[SODQDWLRQIRUOD\LQJ VWDQGDUGWKDQZHLJKWRIWKHHYLGHQFHDQGmµWKHSRVVLELOLW\RI RIIWKH)RXU8QLRQ3DLQWHUV7KHUHZDVQRHYLGHQFHWKDW73& GUDZLQJWZRLQFRQVLVWHQWFRQFOXVLRQVIURPWKHHYLGHQFHGRHV KDG D VHQLRULW\EDVHG RU D VWDWXVEDVHG OD\RII SROLF\ LQ QRW SUHYHQW DQ DGPLQLVWUDWLYH DJHQF\jV ILQGLQJ IURP EHLQJ JHQHUDORUDWWKH)UDQNOLQ)XUQDFHVLWH1RUGLGWKH%RDUG VXSSRUWHGE\VXEVWDQWLDOHYLGHQFHjl1/5%Y.HQWXFN\0D\ EHOLHYHWKHH[SODQDWLRQWKDW73&jVVHQLRULW\V\VWHPUHTXLUHG &RDO&R,QF )G WK&LU   TXRWLQJ OD\LQJ RII WKH )RXU 8QLRQ 3DLQWHUV  0RUHRYHU XQGHU WKH &RQVRORY)HG0DU&RPPjQ86    $OVRXQGHUWKLVVWDQGDUGZHGHIHUWRWKH%RDUGjVUHDVRQDEOH