5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  1DWLRQZLGH0XWXDO,QV 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

Y+RPH,QV&R (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

SURFHVVl1DWLRQZLGH0XW,QV&R )6XSSGDW  +RPHKDVQRWH[SODLQHGZK\WKHLQIRUPDWLRQLVFUXFLDOWRWKH 81,7('67$7(6&28572)$33($/6 SUHSDUDWLRQRILWVFDVH7KHGLVWULFWFRXUWWKHUHIRUHGLGQRW DEXVH LWV GLVFUHWLRQ LQ ILQGLQJ WKDW +RPH GLG QRW SUHVHQW )257+(6,;7+&,5&8,7 mVXIILFLHQW HYLGHQFH LQ VXSSRUW RI LWV PRWLRQ IRU D OLPLWHG BBBBBBBBBBBBBBBBB GLVFRYHU\ ZLWK UHVSHFW WR WKH LVVXH RI HYLGHQW SDUWLDOLW\ RU ELDVl,G 'HVSLWH +RPHjV DOWHUQDWLYH FODLP WKDW WKH GLVWULFW FRXUW 1$7,21:,'( 0878$/ ; LQFRUUHFWO\DSSOLHGWKH6KHOWRQIDFWRUVLQHYDOXDWLQJLWVUHTXHVW ,1685$1&( &203$1<  IRUGLVFRYHU\+RPHKDVIDLOHGWRSUHVHQWDQ\HYLGHQFHWKDW 3ODLQWLII$SSHOOHH  WKH UHSUHVHQWDWLYHV RI 1DWLRQZLGH ZKR PHW ZLWK 7ZLJGHQ  1R ZHUHQRWLQIDFWmRSSRVLQJFRXQVHOl0RUHRYHUHYHQLIWKH  GLVWULFWFRXUWVKRXOGKDYHDSSOLHGDPRUHUHOD[HGVWDQGDUG Y !  +RPH KDV IDLOHG WR GHPRQVWUDWH WKDW mD UHDVRQDEOH SHUVRQ  ZRXOGKDYHWRFRQFOXGHWKDWDQDUELWUDWRUZDVSDUWLDOl 7+( +20( ,1685$1&(  $QGHUVRQV,QF)GDW  &203$1<  'HIHQGDQW$SSHOODQW  :HWKHUHIRUHFRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWDEXVH  LWVGLVFUHWLRQLQUHIXVLQJWRRUGHUGLVFRYHU\RQWKHLVVXHRI 1 HYLGHQWSDUWLDOLW\ $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW ,,,&21&/86,21 IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1R n(GPXQG$6DUJXVsU'LVWULFWsXGJH )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH MXGJPHQWRIWKHGLVWULFWFRXUW $UJXHG 2FWREHU 'HFLGHGDQG)LOHG sDQXDU\ %HIRUH %2**6*,/0$1DQG%5,*+7&LUFXLWsXGJHV

7KH +RQRUDEOH 0\URQ + %ULJKW 6HQLRU &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH (LJKWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ

  1DWLRQZLGH0XWXDO,QV 1R 1R 1DWLRQZLGH0XWXDO,QV  Y+RPH,QV&R Y+RPH,QV&R

BBBBBBBBBBBBBBBBB GLVFUHWLRQ VWDQGDUG 'HDQ Y 0RWHO  2SHUDWLQJ /3  )G  WK&LU   &2816(/ 7KHGLVWULFWFRXUWGHQLHG+RPHjVPRWLRQIRUGLVFRYHU\IURP $5*8('   &OLIIRUG + 6FKRHQEHUJ &$':$/$'(5 +DVVDUG DQG 7ZLJGHQ EHFDXVH +RPH IDLOHG WR RIIHU mFOHDU :,&.(56+$0  7$)7 1HZ <RUN 1HZ <RUN IRU HYLGHQFHRILPSURSHUFRQGXFWl1DWLRQZLGH0XW,QV&R  $SSHOODQW0LFKDHO/&RKHQ&2+(1 %8&./(<//3 ) 6XSS G DW   +RPH DUJXHV WKDW WKH GLVWULFW FRXUWjV %DOWLPRUH0DU\ODQGIRU$SSHOOHH21%5,() &OLIIRUG+ GHFLVLRQ FRQVWLWXWHG DQ DEXVH RI GLVFUHWLRQ EHFDXVH +RPH 6FKRHQEHUJ +DUU\ 3 &RKHQ 3KLOLS s /RUHH sU GHPRQVWUDWHG mFOHDU HYLGHQFH RI LPSURSULHW\l RU LQ WKH &$':$/$'(5 :,&.(56+$0  7$)7 1HZ <RUN DOWHUQDWLYH WKH GLVWULFW FRXUW HUUHG LQ DSSO\LQJ WKH mFOHDU 1HZ <RUN *HUDOG 3 )HUJXVRQ 925<6 6$7(5 HYLGHQFH RI LPSURSULHW\ VWDQGDUGl  7KH SURSHU VWDQGDUG 6(<0285 3($6(//3&ROXPEXV2KLRIRU$SSHOODQW DFFRUGLQJWR+RPHLVZKHWKHUmDUHDVRQDEOHSHUVRQZRXOG 0LFKDHO/&RKHQ&2+(1 %8&./(<//3%DOWLPRUH KDYHWRFRQFOXGHWKDWDQDUELWUDWRUZDVSDUWLDOl(YHQXQGHU 0DU\ODQG 6WHSKHQ & *UD\ 5DQGROSK &DUVRQ :LVHPDQ WKLVUHOD[HGVWDQGDUGKRZHYHU+RPHKDVIDLOHGWRVKRZWKDW %5,&.(5 (&./(5//3&ROXPEXV2KLRIRU$SSHOOHH WKH GLVWULFW FRXUW DEXVHG LWV GLVFUHWLRQ LQ UHIXVLQJ WR DOORZ +RPHWRGHSRVHWKHDUELWUDWRUVWRREWDLQHYLGHQFHDERXWWKHLU BBBBBBBBBBBBBBBBB UHODWLRQVKLSZLWK1DWLRQZLGH 23,1,21 7KHGLVWULFWFRXUWDOVRGHQLHG+RPHjVPRWLRQIRUGLVFRYHU\ BBBBBBBBBBBBBBBBB IURP1DWLRQZLGHjVFRXQVHOEHFDXVH+RPHIDLOHGWRPDNHWKH UHTXLVLWH VKRZLQJ QHFHVVDU\ WR WDNH WKH GHSRVLWLRQ RI DQ 521$/' /(( *,/0$1 &LUFXLW sXGJH  ,Q   RSSRVLQJFRXQVHO'LVFRYHU\IURPDQRSSRVLQJFRXQVHOLV 1DWLRQZLGH0XWXDO,QVXUDQFH&RPSDQ\ILOHGVXLWDJDLQVW7KH mOLPLWHGWRZKHUHWKHSDUW\VHHNLQJWRWDNHWKHGHSRVLWLRQKDV +RPH,QVXUDQFH&RPSDQ\IRUEUHDFKRIFRQWUDFW7KHGLVWULFW VKRZQ WKDW   QR RWKHU PHDQV H[LVW WR REWDLQ WKH FRXUW UHIHUUHG WKH SDUWLHV WR DUELWUDWLRQ EHFDXVH WKHLU LQIRUPDWLRQ   WKHLQIRUPDWLRQVRXJKWLVUHOHYDQWDQG DJUHHPHQWFRQWDLQHGDQDUELWUDWLRQFODXVH3ULRUWRWKHILQDO QRQSULYLOHJHG  DQG   WKH LQIRUPDWLRQ LV FUXFLDO WR WKH UHVROXWLRQRIWKHGLVSXWH1DWLRQZLGHVRXJKWFRQILUPDWLRQRI SUHSDUDWLRQRIWKHFDVHl6KHOWRQY$P0RWRUV&RUS YDULRXVLQWHULPGHFLVLRQVLVVXHGE\WKHDUELWUDWLRQSDQHO7KH )G WK&LU   FLWDWLRQRPLWWHG  +RPH GLVWULFW FRXUW FRQILUPHG WKH SDQHOjV LQWHULP GHFLVLRQV DQG FODLPVWKDWWKHGLVWULFWFRXUWjVGHFLVLRQFRQVWLWXWHGDQDEXVH GHQLHG+RPHjVPRWLRQIRUGLVFRYHU\RQWKHDOOHJHGELDVRIWKH RIGLVFUHWLRQEHFDXVH+RPHGHPRQVWUDWHGWKDWQRRWKHUPHDQV DUELWUDWRUV)RUWKHUHDVRQVVHWIRUWKEHORZZH$)),50WKH H[LVWWRREWDLQWKHQRQSULYLOHJHGDQGFUXFLDOLQIRUPDWLRQ,Q MXGJPHQWRIWKHGLVWULFWFRXUW WKH DOWHUQDWLYH +RPH DUJXHV WKDW WKH UHSUHVHQWDWLYHV RI 1DWLRQZLGH ZKR PHW ZLWK 7ZLJGHQ VRFLDOO\ ZHUH QRW ,%$&.*5281' mRSSRVLQJ FRXQVHOl DQG WKXV WKH GLVWULFW FRXUW DEXVHG LWV 1DWLRQZLGH HQWHUHG LQWR D UHLQVXUDQFH DJUHHPHQW ZLWK GLVFUHWLRQE\DSSO\LQJWKHDERYHIDFWRUV +RPHLQ 8QGHUWKLVDJUHHPHQW+RPHXQGHUWRRNWR &RQWUDU\WR+RPHjVDUJXPHQWWKHGLVWULFWFRXUWIRXQGWKDW FRYHU FHUWDLQ FODLPV WKDW PLJKW EH DVVHUWHG DJDLQVW mPXFK RI WKH LQIRUPDWLRQ VRXJKW LV QRW UHOHYDQW LQ 1DWLRQZLGH  &,*1$ &RUSRUDWLRQ VXEVHTXHQWO\ DVVXPHG GHWHUPLQLQJZKHWKHUHYLGHQWELDVSHUPHDWHGWKHDUELWUDWLRQ +RPHjVREOLJDWLRQXQGHUWKHDJUHHPHQW  1DWLRQZLGH0XWXDO,QV 1R 1R 1DWLRQZLGH0XWXDO,QV  Y+RPH,QV&R Y+RPH,QV&R

WKH GLVWULFW FRXUWjV DVVHVVPHQW WKDW WKH OHWWHUV WR +RPHjV 1DWLRQZLGHVXHG+RPHDQG&,*1$IRUEUHDFKRIFRQWUDFW FRXQVHOGLGQRWH[KLELWELDVSDUWLFXODUO\JLYHQWKDWWKHOHWWHUV LQ    %HFDXVH WKH DJUHHPHQW EHWZHHQ +RPH DQG ZHUH ZULWWHQ LQ UHVSRQVH WR OHWWHUV LQLWLDWHG E\ FRXQVHO IRU 1DWLRQZLGHFRQWDLQHGDQDUELWUDWLRQFODXVHWKHGLVWULFWFRXUW +RPH HQWHUHGDVWD\DQGRUGHUHG+RPHDQG1DWLRQZLGHWRVXEPLW WKHFDVHWRELQGLQJDUELWUDWLRQ7KHGLVWULFWFRXUWODWHURUGHUHG +RPHIXUWKHUVXJJHVWVWKDWWKHDUELWUDWLRQSDQHOj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jV RSLQLRQ 1DWLRQZLGH DQG FRXUWUHMHFWHGWKLVFODLPEHFDXVHm>D@QDGYHUVHDZDUGLQDQG +RPHVXEPLWWHGWKHLUGLVSXWHWRDUELWUDWLRQ7KHDUELWUDWLRQ RI LWVHOI LV QR HYLGHQFH RI ELDV DEVHQW VRPH HYLGHQFH RI SDQHOFRQVLVWHGRIWKUHHDUELWUDWRUV 6LPRQ7ZLJGHQZKRZDV LPSURSHUPRWLYDWLRQl,GDW  LQWHUQDOTXRWDWLRQPDUNV DSSRLQWHG E\ 1DWLRQZLGH  5REHUW & 5HLQDU] ZKR ZDV DQGFLWDWLRQRPLWWHG  DSSRLQWHGE\+RPH DQG:LOOLDP&+DVVDUGZKRZDVWKHQ DSSRLQWHGE\7ZLJGHQDQG5HLQDU]2Q1RYHPEHU  +RPH FODLPV WKDW WKH GLVWULFW FRXUW HUUHG EHFDXVH WKH WKH DUELWUDWLRQ SDQHO RUGHUHG m+RPH WR SRVW SUHKHDULQJ DUELWUDWLRQ SDQHOjV FRQWHPSRUDQHRXV FULWLFLVPV RI +RPH VHFXULW\LQWKHDPRXQWRILQWKHIRUPRIDOHWWHURI SURYLGHLQGHSHQGHQWHYLGHQFHWKDWWKHDUELWUDWLRQSDQHOKDGDQ FUHGLWDERQGRUDGHSRVLWLQWRDQHVFURZDFFRXQWl+RPH LPSURSHU PRWLYH LQ PDNLQJ WKH VHFXULW\ GHFLVLRQ  :H REMHFWHGWRWKHGHFLVLRQEXWWKHDUELWUDWLRQSDQHODIILUPHGLWV GLVDJUHH  )LUVW WKH SDQHOjV UHVSRQVHV WR WKH OHWWHUV IURP UXOLQJRQ6HSWHPEHU  WKHVHFXULW\GHFLVLRQ  +RPHjVFRXQVHOZHUHQRWLQDSSURSULDWHIRUWKHUHDVRQVVWDWHG DERYH6HFRQGHYHQWKHSDQHOPHPEHUVHOHFWHGE\+RPH 3ULRU WR WKH ILQDO UHVROXWLRQ RI WKHLU GLVSXWH 1DWLRQZLGH MRLQHGLQWKHGHFLVLRQWRRUGHUVHFXULW\IRUDQ\GDPDJHVWKDW ILOHG D QHZ ODZVXLW VHHNLQJ FRQILUPDWLRQ RI WKH LQWHULP 1DWLRQZLGHPLJKWHVWDEOLVK)LQDOO\WKHGHWHUPLQDWLRQWKDW GHFLVLRQVLVVXHGE\WKHSDQHORIDUELWUDWRUV+RPHILOHGFURVV WKHSDQHOKDGWKHDXWKRULW\WRPDNHWKHVHFXULW\DZDUGZDV PRWLRQVWRVWD\FRQILUPDWLRQRUWRYDFDWHWKHGHFLVLRQVDQG LPSOLFLWLQLWVGHFLVLRQRQWKHPHULWV:HWKHUHIRUHFRQFXULQ IRU DGGLWLRQDO GLVFRYHU\ RQ ZKHWKHU WKH DUELWUDWRUV ZHUH WKHGLVWULFWFRXUWjVILQGLQJWKDWWKHDUELWUDWRUVZHUHQRWSDUWLDO ELDVHG WR1DWLRQZLGH 2Q 0DUFK   WKH GLVWULFW FRXUW GHQLHG +RPHjV ' 7KH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ PRWLRQ IRU GLVFRYHU\ RQ WKH LVVXH RI DUELWUDO ELDV DQG UHIXVLQJ WR RUGHU GLVFRYHU\ RQ WKH LVVXH RI HYLGHQW FRQILUPHG DOO RI WKH DUELWUDWLRQ SDQHOjV LQWHULP GHFLVLRQV SDUWLDOLW\ 1DWLRQZLGH0XW,QV&RY+RPH,QV&R )6XSSG   6'2KLR +RPHQRZDSSHDOVWKHGLVWULFWFRXUWjV $V LWV ILQDO LVVXH +RPH FRQWHQGV WKDW WKH GLVWULFW FRXUW GHQLDORILWVPRWLRQIRUDGGLWLRQDOGLVFRYHU\DQGWKHFRXUWjV HUUHG LQ QRW DOORZLQJ LW WR GHSRVH +DVVDUG 7ZLJGHQ DQG FRQILUPDWLRQ RI WKH IROORZLQJ WKUHH GHFLVLRQV E\ WKH 1DWLRQZLGHjVFRXQVHORQWKHTXHVWLRQRIDUELWUDOELDV:H DUELWUDWLRQ SDQHO    WKH 0DUFK    GHQLDO RI +RPHjV VXEMHFWWKHGHQLDORIDUHTXHVWIRUGLVFRYHU\WRDQDEXVHRI UHVFLVVLRQFODLP WKHUHVFLVVLRQGHFLVLRQ   WKHsXO\  1DWLRQZLGH0XWXDO,QV 1R 1R 1DWLRQZLGH0XWXDO,QV Y+RPH,QV&R Y+RPH,QV&R

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jV REMHFWLRQV KDYH $OWKRXJK +RPH LQLWLDOO\ FODLPHG WKDW WKH GLVWULFW FRXUW VXIILFLHQW PHULW WR ZDUUDQW VHWWLQJ DVLGH WKH GLVWULFW FRXUWjV ODFNHGVXEMHFWPDWWHUMXULVGLFWLRQWRFRQILUPWKHDUELWUDWLRQ GHWHUPLQDWLRQWKDW7ZLJGHQjVPHHWLQJVZLWK1DWLRQZLGHGR SDQHOjV LQWHULP GHFLVLRQV LW VXEVHTXHQWO\ ZLWKGUHZ WKDW QRWMXVWLI\YDFDWXURIWKHDZDUGVLQTXHVWLRQ FRQWHQWLRQDVDQLVVXHRQDSSHDO:HWKXVKDYHQRQHHGWR FRQVLGHUWKHTXHVWLRQDVSDUWRIWKLVRSLQLRQ +RPHQH[WDUJXHVWKDWWKHDUELWUDWLRQSDQHOFROOXGHGZLWK 1DWLRQZLGHLQDWWHPSWLQJWRLPPXQL]HWKHVHFXULW\GHFLVLRQ % 7KHGLVWULFWFRXUWGLGQRWHUULQUHIXVLQJWRYDFDWHWKH IURPUHYLHZ2Q6HSWHPEHU WKHDUELWUDWLRQSDQHO FRVWVGHFLVLRQRQJURXQGVRISUHMXGLFLDOPLVFRQGXFW LVVXHGDmZULWWHQ FRQILUPDWLRQlWKDWLWV1RYHPEHU  VHFXULW\ GHFLVLRQ ZDV ILQDO DV RI WKH HDUOLHU GDWH  +RPH +RPHDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGLQQRWYDFDWLQJWKH FODLPVWKDWWKHUXOLQJZDVGHVLJQHGWRSUHYHQWYDFDWXURIWKH DUELWUDWLRQSDQHOjVFRVWVGHFLVLRQXQGHU 86&† D   GHFLVLRQEHFDXVHXQGHUWKH)$$DPRWLRQWRYDFDWHPXVWEH 6HFWLRQ D  SURYLGHVWKDWDGLVWULFWFRXUWPD\YDFDWHDQ ILOHGZLWKLQWKUHHPRQWKVIURPWKHGDWHWKHGHFLVLRQLVLVVXHG DUELWUDWLRQ GHFLVLRQ m>Z@KHUH WKH DUELWUDWRUV ZHUH JXLOW\ RI 86&†7RWKHFRQWUDU\WKHGLVWULFWFRXUWIRXQGWKDW PLVFRQGXFW LQ UHIXVLQJ WR SRVWSRQH WKH KHDULQJ XSRQ WKHDUELWUDWLRQSDQHOjV6HSWHPEHU RUGHUZDVWKHUHVXOWRI VXIILFLHQW FDXVH VKRZQ RU LQ UHIXVLQJ WR KHDU HYLGHQFH +RPHKDYLQJLJQRUHGWKH1RYHPEHU RUGHUDQGQHYHU SHUWLQHQW DQG PDWHULDO WR WKH FRQWURYHUV\  RU RI DQ\ RWKHU SRVWLQJWKHVHFXULW\DZDUGHGE\WKHSDQHO7KHGLVWULFWFRXUW PLVEHKDYLRU E\ ZKLFK WKH ULJKWV RI DQ\ SDUW\ KDYH EHHQ GLG QRW HUU LQ ILQGLQJ WKDW WKH DUELWUDWLRQ SDQHOjV mZULWWHQ SUHMXGLFHGl FRQILUPDWLRQlRIWKH VHFXULW\GHFLVLRQZDVDQHIIRUWWR +RPH FRQWHQGV WKDW WKH DUELWUDWLRQ SDQHO ZDV JXLOW\ RI KDYH+RPHFRPSO\ZLWKWKHSDQHOjVRULJLQDOUXOLQJQRWDQ PLVFRQGXFW EHFDXVH LWV FRVWV GHFLVLRQ ZDV EDVHG RQ DWWHPSWWRFROOXGHZLWK1DWLRQZLGH VSUHDGVKHHWVWKDWZHUHSUHSDUHGE\1DWLRQZLGHZLWKRXW+RPH +RPH DOVR FODLPV WKDW WKH DUELWUDWLRQ SDQHO H[KLELWHG KDYLQJ DQ RSSRUWXQLW\ WR FRQGXFW GLVFRYHU\  6SHFLILFDOO\ HYLGHQW SDUWLDOLW\ LQ D VHULHV RI OHWWHUV FULWLFL]LQJ +RPHjV +RPH PDLQWDLQV WKDW    1DWLRQZLGHjV GRFXPHQWDWLRQ RI FRXQVHO7KHGLVWULFWFRXUWIRXQGWKDWWKLVDUJXPHQWmERUGHUV FRVWV ZDV LQDGHTXDWH   WKH SDQHO RUGHUHG 1DWLRQZLGH WR RQWKHIULYRORXVlEHFDXVH+RPHjVFRXQVHOKDGmHQJDJHGLQ SURGXFHPRUHGHWDLOV  1DWLRQZLGHQHYHUSURYLGHGPRUH DQXQUHOHQWLQJXQUHPLWWLQJEDUUDJHRILQYHFWLYHVLPSXJQLQJ GHWDLOVDQG  WKHSDQHOGHQLHGGLVFRYHU\DQGIDLOHGWRKROG WKHLQWHJULW\RIWKH3DQHOPHPEHUVl1DWLRQZLGH0XW DKHDULQJEHIRUHRUGHULQJ+RPHWRSD\FRVWV ,QV&R )6XSSGDW %\FRPSDULVRQWKHGLVWULFW :HDFFHSWWKHGLVWULFWFRXUWjVILQGLQJVRIIDFWXQOHVVFOHDUO\ FRXUWIRXQGWKHDUELWUDWLRQSDQHOjVUHVSRQVHVWREHmIDUPRUH HUURQHRXV DQG FRQVLGHU TXHVWLRQV RI ODZ GH QRYR ZKHQ WHPSHUDWHSURIHVVLRQDODQGDSSURSULDWHl,G:HDJUHHZLWK  1DWLRQZLGH0XWXDO,QV 1R 1R 1DWLRQZLGH0XWXDO,QV  Y+RPH,QV&R Y+RPH,QV&R

GLVFORVHG WKH sXQH   DQG $XJXVW   PHHWLQJV LQ UHYLHZLQJ LWV GHQLDO RI D PRWLRQ WR YDFDWH DQ DUELWUDWLRQ DGYDQFHDQG+RPHGLGQRWWLPHO\REMHFWWRWKHP   QHLWKHU GHFLVLRQ)LUVW2SWLRQVRI&KLFDJR,QFY.DSODQ86 7ZLJGHQ QRU KLV ILUP KDV DQ\ EXVLQHVV UHODWLRQVKLS ZLWK     $GGLWLRQDOGHIHUHQFHLVZDUUDQWHGZKHUH 1DWLRQZLGH   7ZLJGHQGLGQRWGLVFXVVWKHDUELWUDWLRQZLWK FRXUWV DUH FDOOHG XSRQ WR UHYLHZ DQ DUELWUDWRUjV GHFLVLRQ 1DWLRQZLGHGXULQJWKHPHHWLQJV   +RPHGLGQRWEHJLQLWV 'DZDKDUHY6SHQFHU)G  WK&LU  m,W DWWDFNVRQ7ZLJGHQjVSXUSRUWHGELDVXQWLODIWHUWKHDUELWUDWLRQ LVZHOOHVWDEOLVKHGWKDWFRXUWVVKRXOGSOD\RQO\DOLPLWHGUROH SDQHO LVVXHG WKH DGYHUVH UHVFLVVLRQ DQG VHFXULW\ GHFLVLRQV LQUHYLHZLQJWKHGHFLVLRQVRIDUELWUDWRUVl  LQWHUQDOTXRWDWLRQ  +RPHDJUHHGWRVXEPLWWKLVFODLPWRPHPEHUVRIDSDQHO PDUNVDQGFLWDWLRQRPLWWHG /DWWLPHU6WHYHQV&RY8QLWHG ZKR ZHUH DFWLYHO\ LQYROYHG LQ WKH LQVXUDQFH LQGXVWU\  DQG 6WHHOZRUNHUV )G  WK&LU   m:KHQ   FRXQVHO IRU +RPH KDG DOVR RIIHUHG WR PHHW 7ZLJGHQ FRXUWV DUH FDOOHG RQ WR UHYLHZ DQ DUELWUDWRUjV GHFLVLRQ WKH VRFLDOO\ UHYLHZ LV YHU\ QDUURZ  RQH RI WKH QDUURZHVW VWDQGDUGV RI MXGLFLDO UHYLHZ LQ DOO RI $PHULFDQ MXULVSUXGHQFHl  +RPHFKDOOHQJHVHDFKRIWKHGLVWULFWFRXUWjVILQGLQJV)LUVW m$UELWUDWRUVDUHQRWERXQGE\IRUPDOUXOHVRISURFHGXUHDQG +RPHFODLPVWKDW7ZLJGHQGLGQRWGLVFORVHDVHFRQGPHHWLQJ HYLGHQFHDQGWKHVWDQGDUGIRUMXGLFLDOUHYLHZRIDUELWUDWLRQ WKDW KH DOOHJHGO\ KDG ZLWK 1DWLRQZLGH LQ $XJXVW RI   SURFHGXUHVLVPHUHO\ZKHWKHUDSDUW\WRDUELWUDWLRQKDVEHHQ $OWKRXJK+RPHFRQFHGHVWKDWQHLWKHU7ZLJGHQQRUKLVILUP GHQLHGDIXQGDPHQWDOO\IDLUKHDULQJl1DWLRQDO3RVW2IILFHY KDGDEXVLQHVVUHODWLRQVKLSZLWK1DWLRQZLGHLWDVVHUWVWKDW 863RVWDO6HUY)G WK&LU   7ZLJGHQZDVDFWLYHO\VROLFLWLQJEXVLQHVVIURP1DWLRQZLGH +RPH DOVR DUJXHV WKDW LQ ILQGLQJ WKDW 7ZLJGHQ GLG QRW 7KHDUELWUDWLRQSDQHOFRQVLGHUHG1DWLRQZLGHjVVXEPLVVLRQV GLVFXVV WKH DUELWUDWLRQ ZLWK 1DWLRQZLGH WKH GLVWULFW FRXUW DQG +RPHjV REMHFWLRQV EHIRUH mXQDQLPRXVO\ DQG ILQDOO\l LPSURSHUO\UHOLHGRQ7ZLJGHQjVXQVZRUQVWDWHPHQW1H[W DZDUGLQJ 1DWLRQZLGH  IRU WKH FRVWV LW LQFXUUHG LQ +RPHFODLPVWKDWWKHDUELWUDWLRQSDQHOjVDGYHUVHUXOLQJVKDG GHIHQGLQJ DJDLQVW UHVFLVVLRQ  7KLV FRXUW KDV UHMHFWHG WKH QREHDULQJRQWKHFRPSDQ\jVGHFLVLRQWRDWWDFN7ZLJGHQjV FRQWHQWLRQ WKDW DQ DUELWUDWLRQ SDQHO LV UHTXLUHG WR KROG D SXUSRUWHGELDV+RPHIXUWKHUSRLQWVRXWWKDWLWGLGQRWDJUHH KHDULQJRUSHUPLWGLVFRYHU\RQDQRQPHULWVLVVXH/RXLVLDQD WRVXEPLWWKHGLVSXWHWRDQDUELWUDWRUZKRZDVLQYROYHGLQ '%URZQ ,UUHYRFDEOH7UXVWY3HDERG\&RDO&R1R PDUNHWLQJ OHJDO VHUYLFHV WR 1DWLRQZLGH  )LQDOO\ +RPH :/DW  WK&LU)HE VXJJHVWVWKDWLWVRZQFRXQVHOZDVVLPSO\PDNLQJDIULHQGO\ FLWDWLRQVRPLWWHG  XQSXEOLVKHGWDEOHGHFLVLRQ  UHMHFWLQJWKH JHVWXUHZKHQKHRIIHUHGWRPHHW7ZLJGHQVRFLDOO\ DUJXPHQWWKDWDORVLQJSDUW\KDVmDQDEVROXWHULJKWWRSUHVHQW HYLGHQFHDQGFRQIURQWZLWQHVVHVl m)XQGDPHQWDOIDLUQHVV 7KH GLVWULFW FRXUWjV ILQGLQJV WKDW RQO\ RQH PHHWLQJ WRRN UHTXLUHVRQO\QRWLFHDQRSSRUWXQLW\WRSUHVHQWUHOHYDQWDQG SODFHEHWZHHQ7ZLJGHQDQG1DWLRQZLGHLQ$XJXVWRI  PDWHULDO HYLGHQFH DQG DUJXPHQWV WR WKH DUELWUDWRUV DQG DQ DQG WKDW WKH DUELWUDWLRQ SURFHHGLQJV ZHUH QRW GLVFXVVHG DW DEVHQFH RI ELDV RQ WKH SDUW RI WKH DUELWUDWRUVl  ,G DW  HLWKHURIWKHPHHWLQJVEHWZHHQ7ZLJGHQDQG1DWLRQZLGHDUH %HFDXVH+RPHUHFHLYHGFRSLHVRI1DWLRQZLGHjVVXEPLVVLRQV QRWFOHDUO\HUURQHRXV$OWKRXJK+RPHQRZFRPSODLQVWKDW RQWKHFRVWVLWLQFXUUHGLQGHIHQGLQJDJDLQVWUHVFLVVLRQDQG WKHGLVWULFWFRXUWUHOLHGRQDQXQVZRUQVWDWHPHQWE\7ZLJGHQ WKHDUELWUDWLRQSDQHOJDYH+RPHDQRSSRUWXQLW\WRUHVSRQGWR LQILQGLQJWKDWWKHDUELWUDWLRQZDVQRWGLVFXVVHG+RPHIDLOHG WKHVHVXEPLVVLRQVLWLVQRWFOHDUZKDWSXUSRVHGLVFRYHU\RUD WR WLPHO\ REMHFW WR WKH VWDWHPHQW LQ WKH FRXUW EHORZ KHDULQJRQWKLVLVVXHZRXOGKDYHVHUYHG$WWKHYHU\OHDVW 0RUHRYHU +RPH XVHG SRUWLRQV RI WKH VDPH XQVZRUQ +RPHKDGQRWLFHRI1DWLRQZLGHjVFODLPVDQGDQRSSRUWXQLW\ VWDWHPHQWWRVXSSRUWLWVRZQVXEPLVVLRQWRWKHGLVWULFWFRXUW WRSUHVHQWFRXQWHUDUJXPHQWV:HWKHUHIRUHFRQFOXGHWKDWWKH  1DWLRQZLGH0XWXDO,QV 1R 1R 1DWLRQZLGH0XWXDO,QV  Y+RPH,QV&R Y+RPH,QV&R

DUELWUDWLRQ SDQHOjV SURFHGXUH PHW WKH PLQLPDO VWDQGDUG RI FRPSDQ\ 5HSXEOLF )LQDQFLDO 6HUYLFHV WKDW KDG mD UXQRII IXQGDPHQWDO IDLUQHVV  $FFRUGLQJO\ ZH DIILUP WKH GLVWULFW UHODWLRQVKLSlZLWK+RPH1DWLRQZLGH0XW,QV&R ) FRXUWjVGHQLDORI+RPHjVPRWLRQWRYDFDWHWKHsXO\ 6XSS G DW    %XW +RPH FODLPV WKDW +DVVDUG GLG QRW FRVWVGHFLVLRQ GLVFORVH WKDW KH ZDV HQJDJHG LQ GLVFXVVLRQV FRQFHUQLQJ D GLVSXWH EHWZHHQ +RPH DQG 5HSXEOLF UHJDUGLQJ XQSDLG & 7KHGLVWULFWFRXUWGLGQRWHUULQUHIXVLQJWRYDFDWHWKH EDODQFHV LQ WKH UXQRII DFFRXQW  +RPH DOVR DVVHUWV WKDW UHVFLVVLRQDQGFRVWVGHFLVLRQVRQJURXQGVRIHYLGHQW FRQWUDU\WRWKHGLVWULFWFRXUWjVHVWLPDWHWKHDPRXQWRI SDUWLDOLW\ PRQH\LQYROYHGLQWKHGLVSXWHZDV +RPH DOVR DUJXHV WKDW WKH GLVWULFW FRXUW HUUHG LQ QRW 7KH GLVWULFW FRXUW UHVSRQGHG E\ QRWLQJ WKDW m+DVVDUG YDFDWLQJWKHDUELWUDWLRQSDQHOjVUHVFLVVLRQDQGFRVWVGHFLVLRQV GLVFORVHGWKHUHODWLRQVKLSEHWZHHQ+RPHDQG5HSXEOLFDQG SXUVXDQWWR 86&† D  6HFWLRQ D  SURYLGHV GHVFULEHGWKHRQJRLQJUXQRIISURFHVVlDQGWKDW+RPHDQG WKDW D GLVWULFW FRXUW  PD\ YDFDWH DQ DUELWUDWLRQ GHFLVLRQ 1DWLRQZLGH ERWK VWLSXODWHG WKDW WKH\ ZDLYHG VXEVHTXHQW m>Z@KHUH WKHUH ZDV HYLGHQW SDUWLDOLW\ RU FRUUXSWLRQ LQ WKH REMHFWLRQV DV WR ELDV RU SDUWLDOLW\ VWHPPLQJ IURP PDWWHUV DUELWUDWRUVRUHLWKHURIWKHPl+RPHFLWHVWKHIROORZLQJILYH GLVFORVHG DW WKH RUJDQL]DWLRQDO PHHWLQJ  ,G DW  LQVWDQFHV RI SXUSRUWHG mHYLGHQW SDUWLDOLW\l    DUELWUDWRU 0RUHRYHU +DVVDUG PDGH D VXSSOHPHQWDO GLVFORVXUH RQ +DVVDUGjVXQGLVFORVHGLQYROYHPHQWLQDGLVSXWHZLWK+RPH 2FWREHU    WKDW EDVHG RQ KLV SHUVRQDO LQTXLU\   DUELWUDWRU 7ZLJGHQjV PDUNHWLQJ PHHWLQJV ZLWK 5HSXEOLF ZDV FODLPLQJ WKDW +RPH RZHG LW DSSUR[LPDWHO\ 1DWLRQZLGH    FROOXVLRQ EHWZHHQ 1DWLRQZLGH DQG WKH   ,G DW 7KHGLVWULFWFRXUWFRQFOXGHGWKDWmWKH DUELWUDWLRQSDQHOWRLQVXODWHWKHVHFXULW\GHFLVLRQIURPUHYLHZ H[LVWHQFHRIDUXQRIIUHODWLRQVKLSLPSOLHVWKDWDGLVSXWHFRXOG  WKHDUELWUDWLRQSDQHOjVKRVWLOLW\WRZDUG+RPH DQG  WKH DULVHGXULQJWKHFRXUVHRIVXFKUHODWLRQVKLS%HFDXVHVXFK DUELWUDWLRQSDQHOjVVHFXULW\GHFLVLRQ LVVXHVZHUHFOHDUO\NQRZQWRWKHSDUWLHVEHIRUHWKHDUELWUDWLRQ EHJDQ +RPH FDQQRW FRPSODLQ DIWHU WKH IDFW WKDW WKH 7KLVFRXUWKDVKHOGWKDWHYLGHQWSDUWLDOLW\mZLOOEHIRXQG UHODWLRQVKLSH[LVWVl,G IRRWQRWHRPLWWHG  RQO\ZKHUHDUHDVRQDEOHSHUVRQZRXOGKDYHWRFRQFOXGHWKDW DQ DUELWUDWRU ZDV SDUWLDO WR RQH SDUW\ WR WKH DUELWUDWLRQl 7KHGLVWULFWFRXUWjVILQGLQJWKDWWKHQHWDPRXQWLQGLVSXWH $QGHUVRQV,QFY+RUWRQ)DUPV,QF)G EHWZHHQ 5HSXEOLF DQG +RPH ZDV UHODWLYHO\ VPDOO LV QRW WK &LU    LQWHUQDO TXRWDWLRQ PDUNV DQG FLWDWLRQ FOHDUO\ HUURQHRXV  $OWKRXJK 5HSXEOLF SXUSRUWHGO\ RZHG RPLWWHG m7KHDOOHJHGSDUWLDOLW\PXVWEHGLUHFWGHILQLWHDQG +RPH+RPHDSSDUHQWO\RZHG5HSXEOLF FDSDEOH RI GHPRQVWUDWLRQ DQG WKH SDUW\ DVVHUWLQJ HYLGHQW 7KHQHWDPRXQWLQGLVSXWHWKHUHIRUHZDVRQO\WKHGLIIHUHQFH SDUWLDOLW\PXVWHVWDEOLVKVSHFLILFIDFWVWKDWLQGLFDWHLPSURSHU RIDSSUR[LPDWHO\)XUWKHUPRUHDVWKHGLVWULFWFRXUW PRWLYHV RQ WKH SDUW RI WKH DUELWUDWRUl  ,G DW   LQWHUQDO SRLQWHGRXW+DVVDUGGLVFORVHGWKHUXQRIIUHODWLRQVKLSEHIRUH TXRWDWLRQPDUNVDQGFLWDWLRQVRPLWWHG  DUELWUDWLRQFRPPHQFHG7KHVHIDFWVGRQRWVXSSRUW+RPHjV FODLPRImHYLGHQWSDUWLDOLW\lRQWKHSDUWRI+DVVDUG +RPHjVILUVWDUJXPHQWLVWKDW+DVVDUGIDLOHGWRGLVFORVHKLV LQYROYHPHQW LQ D GLVSXWH ZLWK +RPH  ,W DFNQRZOHGJHV +RPH DOVR DVVHUWV WKDW 7ZLJGHQjV PHHWLQJV ZLWK KRZHYHU WKDW GXULQJ DQ RUJDQL]DWLRQDO PHHWLQJ RI WKH 1DWLRQZLGH ZHUH IRU WKH SXUSRVH RI PDUNHWLQJ KLV OHJDO DUELWUDWLRQ SDQHO ZLWK +RPH DQG 1DWLRQZLGH +DVVDUG VHUYLFHV%XWWKHGLVWULFWFRXUWHQXPHUDWHGVL[UHDVRQVZK\ GLVFORVHG WKDW KH VHUYHG DV &KDLUPDQ RI WKH %RDUG IRU D WKH PHHWLQJV GLG QRW MXVWLI\ YDFDWXU    7ZLJGHQ IXOO\