5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  3DSHU$OOLHG,QGXVWULDOY 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  $LU3URGXFWV &KHPLFDOV (/(&7521,& &,7$7,21  )(' $SS  3 WK &LU )LOH 1DPH D S WR GLVFHUQ ZKHWKHU WKH VHQLRU HPSOR\HHV RI WKH &KHPLFDO 3ODQWKDYHFRQWUDFWXDOULJKWVWRWKHMREVDWWKH3RZHU3ODQW 81,7('67$7(6&28572)$33($/6 ZHPXVWORRNWRWKHDFWXDO$JUHHPHQWDQGLWVH[SUHVVWHUPV 6SHFLILFDOO\ WKLV UHYLHZ LQYROYHV LQWHUSUHWDWLRQ RI VXFK )257+(6,;7+&,5&8,7 SKUDVHVDVmQHZRSHUDWLQJSODQWlmRSHUDWLRQDOGHSDUWPHQWl BBBBBBBBBBBBBBBBB DQGmDQ\RWKHURSHUDWLQJSODQWZKLFKPD\EHDGGHGGXULQJWKH OLIH RI WKLV FRQWUDFWl DORQJ ZLWK WKH VWDWHG SXUSRVH RI WKH $JUHHPHQWmWRSURYLGHIRUWKHRSHUDWLRQRIWKH&DOYHUW&LW\ .HQWXFN\&KHPLFDO3ODQWRI$LU3URGXFWVl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jOLPLWHG UROH ZLWKUHVSHFWWR $,5 352'8&76 &+(0,&$/6   DUELWUDOMXULVGLFWLRQWKLV&RXUWPXVWUHYHUVHWKHGHFLVLRQRI ,1&  WKH'LVWULFW&RXUWDQGFRPSHODUELWUDWLRQRIWKHXQGHUO\LQJ 'HIHQGDQW$SSHOOHH  JULHYDQFHEHWZHHQWKH8QLRQDQG$LU3URGXFWV7KHDUELWUDWRU 1 PD\ WKHQ GHFLGH ZKHWKHU WKH SDUWLFXODU ODQJXDJH LQ WKH SDUWLHVj$JUHHPHQWZLOOVXSSRUWWKH8QLRQjVFODLP $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW3DGXFDK ,,,&21&/86,21 1Rn7KRPDV%5XVVHOO'LVWULFWsXGJH ,QVXPWKLV&RXUWILQGVWKDWWKH'LVWULFW&RXUWHUUHGZKHQ $UJXHG sDQXDU\ LW KHOG WKDW WKH XQGHUO\LQJ GLVSXWH ZDV DQ LVVXH RI UHSUHVHQWDWLRQWKXVSURKLELWLQJDUELWUDWLRQRIVXFKFODLP,Q 'HFLGHGDQG)LOHG $XJXVW ILQGLQJWKHPDWWHULVRQHRIFRQWUDFWLQWHUSUHWDWLRQDQGRQLWV IDFH LV JRYHUQHG E\ WKH UHOHYDQW FROOHFWLYH EDUJDLQLQJ %HIRUH *8<DQG&/$<&LUFXLWsXGJHV 18*(17 DJUHHPHQWDQGZKHUHWKHGLVSXWHLVQRWSHQGLQJEHIRUHWKH 'LVWULFWsXGJH 1/5%ZH5(9(56(WKH'LVWULFW&RXUWjVGHFLVLRQJUDQWLQJ VXPPDU\MXGJPHQWLQIDYRURI$LU3URGXFWVDQGZHRUGHU DUELWUDWLRQRIWKH8QLRQjVJULHYDQFH

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

  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV BBBBBBBBBBBBBBBBB HTXLW\LQDSDUWLFXODUFODLPRUGHWHUPLQLQJZKHWKHUWKHUH LV SDUWLFXODU ODQJXDJH LQ WKH ZULWWHQ LQVWUXPHQW ZKLFK &2816(/ ZLOOVXSSRUWWKHFODLP7KHDJUHHPHQWLVWRVXEPLWDOO JULHYDQFHV WR DUELWUDWLRQ QRW PHUHO\ WKRVH ZKLFK WKH $5*8(' +HUEHUW6HJDO6(*$/67(:$57&87/(5 FRXUWZLOOGHHPPHULWRULRXV /,1'6$< s$1(6  %(55< /RXLVYLOOH .HQWXFN\ IRU $SSHOODQW  ,DQ 0 %DOODUG sU 025*$1 /(:,6 $P0IJ86DW6&W7KXVWKH6XSUHPH %2&.,86 3KLODGHOSKLD 3HQQV\OYDQLD IRU $SSHOOHH &RXUW FRQFOXGHG LQ $PHULFDQ 0DQXIDFWXULQJ WKDW EHFDXVH 21%5,() +HUEHUW6HJDO6(*$/67(:$57&87/(5 WKHUHZDVDGLVSXWHEHWZHHQWKHSDUWLHVDVWRmWKHPHDQLQJ /,1'6$< s$1(6  %(55< /RXLVYLOOH .HQWXFN\ IRU LQWHUSUHWDWLRQ DQG DSSOLFDWLRQl RI WKH FROOHFWLYH EDUJDLQLQJ $SSHOODQW  ,DQ 0 %DOODUG sU 025*$1 /(:,6 DJUHHPHQW QDPHO\ WKH VHQLRULW\ SURYLVLRQ DUELWUDWLRQ ZDV %2&.,863KLODGHOSKLD3HQQV\OYDQLD5LFKDUG6&OHDU\ SURSHU,GDW  *5((1(%$80 '2//  0F'21$/' /RXLVYLOOH .HQWXFN\IRU$SSHOOHH ,QWKHFRPSDQLRQFDVHRI8QLWHG6WHHOZRUNHUVY:DUULRU *XOI1DYLJDWLRQ&R866&W   WKH BBBBBBBBBBBBBBBBB 6XSUHPH&RXUWDJDLQHPSKDVL]HGWKHFRXUWVjOLPLWHGUROH ZLWK UHVSHFW WR DUELWUDELOLW\ LVVXHV  6XSSRUWLQJ WKH 23,1,21 mFRQJUHVVLRQDOSROLF\LQIDYRURIVHWWOHPHQWRIGLVSXWHVE\WKH BBBBBBBBBBBBBBBBB SDUWLHVWKURXJKWKHPDFKLQHU\RIDUELWUDWLRQl86DW 6&WWKH&RXUWFRQFOXGHGDVIROORZV 18*(17'LVWULFWsXGJH7KH3ODLQWLII$SSHOODQW3DSHU $OOLHG,QGXVWULDO&KHPLFDO (QHUJ\:RUNHUV,QWHUQDWLRQDO 7KHMXGLFLDOLQTXLU\XQGHU>6HFWLRQRIWKH/05$@ 8QLRQ/RFDO/RFDO KHUHLQDIWHUm8QLRQl ILOHG PXVW EH VWULFWO\ FRQILQHG WR WKH TXHVWLRQ ZKHWKHU WKH DQDFWLRQLQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH:HVWHUQ UHOXFWDQWSDUW\GLGDJUHHWRDUELWUDWHWKHJULHYDQFH$Q 'LVWULFWRI.HQWXFN\3DGXFDK'LYLVLRQVHHNLQJWRFRPSHO RUGHUWRDUELWUDWHWKHSDUWLFXODUJULHYDQFHVKRXOGQRWEH WKH'HIHQGDQW$SSHOOHHWRDUELWUDWHDJULHYDQFH7KHSDUWLHV GHQLHGXQOHVVLWPD\EHVDLGZLWKSRVLWLYHDVVXUDQFHWKDW ILOHG FURVVPRWLRQV IRU VXPPDU\ MXGJPHQW  7KH 'LVWULFW WKH DUELWUDWLRQ FODXVH LV QRW VXVFHSWLEOH RI DQ &RXUW JUDQWHG VXPPDU\ MXGJPHQW LQ IDYRU RI 'HIHQGDQW LQWHUSUHWDWLRQWKDWFRYHUVWKHDVVHUWHGGLVSXWH'RXEWV ILQGLQJ WKDW WKH LVVXH EHWZHHQ WKH SDUWLHV ZDV D VKRXOGEHUHVROYHGLQIDYRURIFRYHUDJH mUHSUHVHQWDWLRQDOLVVXHlVXEMHFWWRWKHH[FOXVLYHMXULVGLFWLRQ RIWKH1DWLRQDO/DERU5HODWLRQV%RDUG m1/5%l 3ODLQWLII ,GDW7KH:DUULRU *XOI&RXUWIXUWKHUVWDWHGWKDW ILOHG WKLV WLPHO\ DSSHDO  )RU WKH UHDVRQV WKDW IROORZ ZH LQ WKH DEVHQFH RI DQ\ H[SUHVV SURYLVLRQV H[FOXGLQJ D 5(9(56(WKHGHFLVLRQRIWKH'LVWULFW&RXUW SDUWLFXODUJULHYDQFHIURPDUELWUDWLRQmZHWKLQNRQO\WKHPRVW IRUFHIXO HYLGHQFH RI D SXUSRVH WR H[FOXGH WKH FODLP IRU ,%$&.*5281' DUELWUDWLRQFDQSUHYDLOl,GDW 'HIHQGDQW$SSHOOHH $LU 3URGXFWV DQG &KHPLFDOV ,QF 5HYLHZLQJWKH$JUHHPHQWLQLWVHQWLUHW\ZHFRQFOXGHWKDW m$LU3URGXFWVl RSHUDWHVD&KHPLFDO3ODQWLQ&DOYHUW&LW\ WKH 8QLRQjV XQGHUO\LQJ GLVSXWH GRHV LQGHHG LQYROYH WKH .HQWXFN\  7KH FRPSDQ\ LV DQ HPSOR\HU LQ DQ LQGXVWU\ mLQWHUSUHWDWLRQ RU DSSOLFDWLRQ RI DQ\ RI WKH WHUPV RU DIIHFWLQJFRPPHUFHZLWKLQWKHPHDQLQJRI 86&† SURYLVLRQVlRIWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQW,QRUGHU  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV DJUHHPHQWl  5DFHZD\ 3DUN ,QF Y /RFDO  6HUY †7KH8QLRQLVDODERURUJDQL]DWLRQZKLFKUHSUHVHQWV (PSOR\HHV,QWjO8QLRQ)G  WK&LU  FLWLQJ HPSOR\HHV LQ DQ LQGXVWU\ DIIHFWLQJ FRPPHUFH ZLWKLQ WKH $P 0IJ  86 DW   6&W  8QLWHG PHDQLQJRI 86&††$LU3URGXFWVDQGWKH 6WHHOZRUNHUV Y :DUULRU  *XOI 1DYLJDWLRQ &R  86 8QLRQ DUH SDUWLHV WR D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW 6&W   DQG8QLWHG6WHHOZRUNHUV mFROOHFWLYHEDUJDLQLQJDJUHHPHQWlRUmWKH$JUHHPHQWl 7KH Y(QWHUSULVH:KHHO &DU&RUS86  6&W 8QLRQLVWKHH[FOXVLYHFROOHFWLYHEDUJDLQLQJUHSUHVHQWDWLYHRI     WKHHPSOR\HHVRI$LU3URGXFWVjSODQW $PHULFDQ 0DQXIDFWXULQJ LQYROYHG D VXLW E\ D XQLRQ WR $LU 3URGXFWV DOVR RSHUDWHV D SODQW NQRZQ DV WKH 3RZHU FRPSHODUELWUDWLRQRIDJULHYDQFHZKLFKWKHXQLRQILOHGZLWK 3ODQW  $LU 3URGXFWV FRQVWUXFWHG WKLV 3ODQW DGMDFHQW WR WKH WKHXQLRQPHPEHUjVHPSOR\HU7KHXQLRQFODLPHGWKDWWKH &KHPLFDO 3ODQW LQ WKH 6SULQJ RI    $FFRUGLQJ WR $LU HPSOR\HUKDGYLRODWHGWKHWHUPVRIWKHVHQLRULW\SURYLVLRQRI 3URGXFWVWKH3RZHU3ODQWLVVHSDUDWHDQGGLVWLQFWIURPWKH WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW ZKLOH WKH FRPSDQ\ &KHPLFDO3ODQW$LU3URGXFWVFRQWHQGVWKDWLWVFRPSDQ\LV PDLQWDLQHGWKDWLWGLGQRW7KH6XSUHPH&RXUWRXWOLQHGWKH GLYLGHGLQWRWZRGLIIHUHQWmRSHUDWLQJJURXSVl WKH&KHPLFDOV UROHRIWKHMXGLFLDU\LQPDWWHUVZKHUHSDUWLHVWRWKHODZVXLW *URXSDQGWKH*DVHVDQG(TXLSPHQW*URXS7KH&KHPLFDOV KDYHLQIDFWQHJRWLDWHGDFROOHFWLYHEDUJDLQLQJDJUHHPHQWWR *URXS DFFRUGLQJ WR $LU 3URGXFWV FRQVLVWV RI YDULRXV GHILQHWKHLUULJKWVsXVWLFH'RXJODVZULWLQJIRUDXQDQLPRXV RSHUDWLQJGHSDUWPHQWVLQFOXGLQJ9LQ\O$FHWDWH$FHW\OHQLFV &RXUWVWDWHGDVIROORZV 3RO\YLQ\O$OFRKRO8WLOLWLHV(PXOVLRQ6SUD\'U\HUDQGmDQ\ RWKHURSHUDWLQJSODQWZKLFKPD\EHDGGHGGXULQJWKHOLIHRIl 7KHIXQFWLRQRIWKHFRXUWLVYHU\OLPLWHGZKHQWKHSDUWLHV WKH SDUWLHVj FROOHFWLYH EDUJDLQLQJ DJUHHPHQW  DQG LW DOVR KDYH DJUHHG WR VXEPLW DOO TXHVWLRQV RI FRQWUDFW RSHUDWHV WKH &KHPLFDO 3ODQW  7KH *DVHV DQG (TXLSPHQW LQWHUSUHWDWLRQ WR WKH DUELWUDWRU  ,W LV FRQILQHG WR *URXSRQWKHRWKHUKDQGSURYLGHVVWHDPDQGHOHFWULFLW\WRWKH DVFHUWDLQLQJ ZKHWKHU WKH SDUW\ VHHNLQJ DUELWUDWLRQ LV &KHPLFDO 3ODQW DQG WKH 7HQQHVVHH 9DOOH\ $XWKRULW\  ,Q PDNLQJ D FODLP ZKLFK RQ LWV IDFH LV JRYHUQHG E\ WKH DGGLWLRQWKH*DVHVDQG(TXLSPHQW*URXSPDUNHWVWKH3RZHU FRQWUDFW 3ODQWjVVWHDPDQGHOHFWULFLW\WRRWKHUVZLWKLQ&DOYHUW&LW\DQG WKURXJKRXWWKHFRXQWU\$LU3URGXFWVSURYLGHVWKHIROORZLQJ $P0IJ86DW6&W VHHDOVR*HQ IDFWVLQVXSSRUWRILWVFRQWHQWLRQWKDWWKH&KHPLFDO3ODQWDQG 'ULYHUV6DOHVPHQDQG:DUHKRXVHPHQj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j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jDFWLRQV$UWLFOH;;9RIWKH$JUHHPHQWGHVFULEHV WKLV$JUHHPHQWRUDQ\GLVSXWHZKLFKVKDOODULVHEHWZHHQ WKHPDQQHULQZKLFKJULHYDQFHVVKDOOEHDGGUHVVHG  WKH8QLRQRULWVPHPEHUVDQGWKH&RPSDQ\ZLWKUHVSHFW WRWKHLQWHUSUHWDWLRQRUDSSOLFDWLRQRIDQ\RIWKHWHUPVRU $Q\JULHYDQFHVRIDQ\HPSOR\HHFRYHUHGE\WKHWHUPVRI SURYLVLRQVRIWKLV$JUHHPHQWVKDOOEHGHWHUPLQHGGXULQJ WKLV$JUHHPHQWRUDQ\GLVSXWHZKLFKVKDOODULVHEHWZHHQ WKHWHUPRIWKLV$JUHHPHQWE\WKHSURFHGXUHVHWIRUWKE\ WKH8QLRQRULWVPHPEHUVDQGWKH&RPSDQ\ZLWKUHVSHFW WKLV$UWLFOH WRWKHLQWHUSUHWDWLRQRUDSSOLFDWLRQRIDQ\RIWKHWHUPVRU SURYLVLRQVRIWKLV$JUHHPHQWVKDOOEHGHWHUPLQHGGXULQJ s$DW,IWKHSDUWLHVDUHXQDEOHWRVDWLVIDFWRULO\UHVROYH WKHWHUPRIWKLV$JUHHPHQWE\WKHSURFHGXUHVHWIRUWKE\ WKH JULHYDQFH LQ DFFRUGDQFH ZLWK WKH JULHYDQFH SURFHGXUH WKLV$UWLFOH RXWOLQHGLQWKH$JUHHPHQW$UWLFOH;;9,SURYLGHVWKDWWKH TXHVWLRQ PD\ EH VXEPLWWHG WR DUELWUDWLRQ  7KH $JUHHPHQW s$DW H[SUHVVO\VWDWHVWKDWWKHDUELWUDWRUGRHVQRWKDYHWKHSRZHUWR mDGGWRRUVXEWUDFWIURPRUWRPRGLI\DQ\RIWKH$UWLFOHVlRI 7KHJULHYDQFHVWDWHGDVIROORZV WKH$JUHHPHQWs$DW7KHUHIRUHWKHLVVXHLVZKHWKHU WKH8QLRQjVGLVSXWHWKH&KHPLFDO3ODQWHPSOR\HHVjVHQLRULW\ ,QRUGHUWRUHSODFHDQH[LVWLQJ8WLOLWLHV3ODQWLQ $LU ULJKWVWRWKHMREVDWWKH3RZHU3ODQWRQLWVIDFHLVJRYHUQHG 3URGXFWV DQG &KHPLFDOV ,QF VWDUWHG FRQVWUXFWLRQ RI D E\WKH$JUHHPHQWDQGDVVXFKPD\EHUHIHUUHGWRDUELWUDWLRQ FRJHQHUDWLRQ XQLW DGMRLQLQJ WKH H[LVWLQJ 8WLOLWLHV 8QLW DW WKHLU&DOYHUW&LW\.HQWXFN\ORFDWLRQ,Q2FWREHU  7KH6XSUHPH&RXUWLQLWVWKUHHGHFLVLRQVGHFLGHGLQ  $LU3URGXFWVDQG&KHPLFDOV,QFDQQRXQFHGWKHKLULQJRI NQRZQDVWKHm6WHHOZRUNHUV7ULORJ\l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mQRW VXVFHSWLEOH RI DQ LQWHUSUHWDWLRQ WKDW FRYHUV WKH DVVHUWHG GLVSXWHl  DQG *ULHYDQFH 5HSRUW s$ DW   :LWKLQ WKH JULHYDQFH WKH  UHIUDLQLQJIURPUHYLHZLQJWKHPHULWVRIDQDZDUGVRORQJ 8QLRQ UHTXHVWHG WKDW $LU 3URGXFWV mFHDVH DQG GHVLVW IURP DV LW mGUDZV LWV HVVHQFH IURP WKH FROOHFWLYH EDUJDLQLQJ YLRODWLQJ WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW EHWZHHQ WKH  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV FDVHDWKDQGRQO\WKHIHGHUDOFRXUWKDVEHHQSUHVHQWHGZLWK &RPSDQ\ DQG WKH 8QLRQ DQG DJUHH WKDW FXUUHQW HPSOR\HHV WKHGLVSXWHGLVVXH7KHUHIRUHSXUVXDQWWR6HFWLRQWKH XQGHUWKHSURYLVLRQVRIWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQWEH FRXUWKDVMXULVGLFWLRQRYHUWKH8QLRQjVGLVSXWH DOORZHGWRH[HUFLVHWKHLUVHQLRULW\ULJKWVWRWKHMREVZKHQWKH FRJHQHUDWLRQXQLWEHFRPHVRSHUDWLYHls$DW  $UELWUDWLRQ 2Q1RYHPEHU $LU3URGXFWVGHQLHGWKH8QLRQjV $LU 3URGXFWV FRQFHGHV WKDW WKH SDUWLHV FRQWUDFWHG WR JULHYDQFH  $LU 3URGXFWVj SRVLWLRQ ZDV WKDW WKH FXUUHQW DUELWUDWHDJULHYDQFHZKHQWKHXQGHUO\LQJGLVSXWHLQYROYHVWKH EDUJDLQLQJXQLWHPSOR\HHVRIWKH&DOYHUW&LW\&KHPLFDO3ODQW LQWHUSUHWDWLRQRUDSSOLFDWLRQRIWKHWHUPVDQGSURYLVLRQVRIWKH KDYHQRFRQWUDFWXDOULJKWVWRWKHMREVDWWKHQHZFRJHQHUDWLRQ FROOHFWLYHEDUJDLQLQJDJUHHPHQW$FFRUGLQJWR$LU3URGXFWV SODQW$LU3URGXFWVVWDWHGLQLWV$QVZHUWRWKHJULHYDQFHWKDW KRZHYHUWKHGLVSXWHLQWKLVFDVHLVDQLVVXHRIUHSUHVHQWDWLRQ mWKH QHZ &RJHQHUDWLRQ 3ODQW LV QRW SDUW RI WKH &KHPLFDO ZKHWKHUWKH8QLRQjVUHSUHVHQWDWLRQVKRXOGEHH[WHQGHGWRWKH 3ODQW WKHUHIRUHLWVRSHUDWLRQDQGVWDIILQJLVQRWFRYHUHGE\ QHZ 3RZHU 3ODQWZKLFK UHTXLUHV QR LQWHUSUHWDWLRQ RI WKH WKH/DERU$JUHHPHQWl,G WHUPV DQG SURYLVLRQV RI WKH $JUHHPHQW  0RUHRYHU D GHWHUPLQDWLRQRIZKHWKHUWKHZLWKLQDJUHHPHQWDOVRFRYHUV 7KH8QLRQWKHQDWWHPSWHGWRPRYHWKHPDWWHUWRDUELWUDWLRQ WKHQHZ3RZHU3ODQWDFFRUGLQJWR$LU3URGXFWVFDQQRWEH DVLWEHOLHYHGLWZDVHQWLWOHGWRGRXQGHU$UWLFOH;;9,RIWKH UHVROYHGE\DUELWUDWLRQEHFDXVHLWUHTXLUHVORRNLQJEH\RQGWKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW ZLWK $LU 3URGXFWV ZKLFK WHUPV RI WKH $JUHHPHQW DQG WKXV H[FHHGV WKH SRZHUV SURYLGHV WKDW mLQ WKH HYHQW WKDW D JULHYDQFH LV QRW VHWWOHG FRQIHUUHGXSRQWKHDUELWUDWRU$LU3URGXFWVFRQWHQGVWKDWWKH VDWLVIDFWRULO\E\WKHJULHYDQFHSURFHGXUHWKHTXHVWLRQPD\EH $JUHHPHQWH[SUHVVO\VWDWHVWKDWRQHRIWKHSXUSRVHVRIWKH VXEPLWWHG WR DUELWUDWLRQ    l  s$ DW   $LU 3URGXFWV $JUHHPHQW LV WR mSURYLGH IRU WKH RSHUDWLRQ RI WKH    KRZHYHU UHIXVHG WR DUELWUDWH  7KHUHDIWHU WKH 8QLRQ &KHPLFDO 3ODQWl DQG WKXV WKH $JUHHPHQW LV OLPLWHG WR FRPPHQFHGWKHZLWKLQOLWLJDWLRQDQGLWVHHNVWRHQIRUFH$LU RSHUDWLRQVDWWKH&KHPLFDO3ODQW$LU3URGXFWVFRQFOXGHV 3URGXFWVWRDUELWUDWHLWVJULHYDQFH WKHUHIRUHWKDWWKHUHLVQRSURYLVLRQH[WHQGLQJLWVWHUPVWRDQ\ RWKHUIDFLOLW\RSHUDWHGE\$LU3URGXFWVDQGDQ\DWWHPSWWRGR 7KH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW DW LVVXH KHUHLQ ZDV VRZRXOGYLRODWHWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQW HQWHUHG LQWR RQ RU DERXW )HEUXDU\    EHWZHHQ $LU 3URGXFWV DQG WKH 8QLRQ LQ RUGHU WR mIXUWKHU WKH PXWXDO $LU3URGXFWVjUHDGLQJRIWKH$JUHHPHQWKRZHYHULVDYHU\ LQWHUHVWVRIERWKWKH&RPSDQ\DQGLWVHPSOR\HHVls$DW  QDUURZ RQH  ,I ZH ZHUH WR YLHZ  WKH $JUHHPHQW DV $LU 7KH $JUHHPHQW VWDWHV WKDW WKH SDUWLHV DJUHH WR mSURYLGH D 3URGXFWV VXJJHVWV ZH ZRXOG EH IRUFHG WR LJQRUH RWKHU SHDFHIXO PHWKRG RI DGMXVWLQJ GLIIHUHQFHV ZKLFK PD\ DULVH SHUWLQHQWSURYLVLRQVRIWKH$JUHHPHQW7KLV&RXUWLVERXQG EHWZHHQWKHSDUWLHVlDQGWRmSURYLGHIRUWKHRSHUDWLRQRIWKH E\WKHWUDGLWLRQDOSULQFLSOHVRIFRQWUDFWLQWHUSUHWDWLRQ8$: &DOYHUW&LW\.HQWXFN\&KHPLFDO3ODQWRI$LU3URGXFWVDQG Y <DUG0DQ ,QF  )G    WK &KHPLFDOV,QFls$DW7KH$JUHHPHQWVSHFLILFDOO\ &LU  FLWDWLRQVRPLWWHG :HPXVWWKHUHIRUHFRQVLGHU FRYHUV WKH$JUHHPHQWDVDZKROHVRDVWRJLYHPHDQLQJDQGHIIHFWWR DOORILWVSURYLVLRQV,G DOOKRXUO\UDWHGSURGXFWLRQDQGPDLQWHQDQFHHPSOR\HHV LQFOXGLQJ RSHUDWLRQDO HPSOR\HHV ZDUHKRXVHUV 7KH $JUHHPHQW DW LVVXH RXWOLQHV D JULHYDQFH SURFHGXUH HOHFWULFLDQV SDLQWHUV EDJJHU RSHUDWRUV VWRUHNHHSHUV ZKLFK SURYLGHV D PHDQV E\ ZKLFK WKH 8QLRQ DQG WKH XWLOLW\SHUVRQVDQGMDQLWRUVRIWKHm&KHPLFDO3ODQWlRI  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV $LU 3URGXFWV DQG &KHPLFDOV ,QF DW &DOYHUW &LW\ LQGLVWLQJXLVKDEOHl,G7KXVZHKHOGWKDWZKHUHWKH%RDUGjV .HQWXFN\ UHVROXWLRQ RI QRQFRQWUDFWXDO LVVXHV FRXOG DOVR UHVROYH WKH FRQWURYHUVLDOEUHDFKRIFRQWUDFWFODLPVEURXJKWXQGHU† s$DW WKHIHGHUDOFRXUWVVKRXOGGHFOLQHWRH[HUFLVHMXULVGLFWLRQRYHU WKH FRQWUDFWXDO DOOHJDWLRQV   )G DW   FLWLQJ $UWLFOH;;,,RIWKH$JUHHPHQWVHWVIRUWKVSHFLILFJXLGHOLQHV $PDOJDPDWHG&ORWKLQJ 7H[WLOH:RUNHUV8QLRQ$)/&,2 ZLWK UHVSHFW WR WKH VHQLRULW\ RI LWV HPSOR\HHV  m3ODQW Y)DFHWJODV,QF)G WK&LU  ILQGLQJWKDW 6HQLRULW\lLVWKHmULJKWRISUHIHUHQFHlWROD\RIIVUHFDOOVWR ZKHUH 1/5%jV UHVROXWLRQ RI UHSUHVHQWDWLRQDO LVVXHV ZRXOG ZRUN DQG mILOOLQJ MRE YDFDQFLHV ZKHUH WKHUH DUH QR DOVRUHVROYHFRQWUDFWXDOLVVXHVWKHFRXUWGHFOLQHGWRH[HUFLVH H[SHULHQFHGSHUVRQQHOELGGLQJIRUWKHSRVWHGMREls$DW MXULVGLFWLRQRYHUWKHFRQWUDFWXDOFODLP  &RQWDLQHG ZLWKLQ WKLV VHFWLRQ LV D OLVW RI WKH YDULRXV mRSHUDWLQJ GHSDUWPHQWVl ZKLFK PD\ EH DYDLODEOH WR VXFK 2O\PSLF 3ODWLQJ KRZHYHU LV GLVWLQJXLVKDEOH IURP WKH PHPEHUV LQFOXGLQJ YLQ\O DFHWDWH DFHW\OHQLFV SRO\YLQ\O LQVWDQW FDVH  ,Q 2O\PSLF 3ODWLQJ WKH ,QWHUQDWLRQDO XQLRQ DOFRKRO XWLOLWLHV HPXOVLRQ VSUD\ GU\HU mDQG DQ\ RWKHU DOOHJHG WKDW 2O\PSLF EUHDFKHG WKH FROOHFWLYH EDUJDLQLQJ RSHUDWLQJSODQWZKLFKPD\EHDGGHGGXULQJWKHOLIHRIWKLV DJUHHPHQWE\UHFRJQL]LQJWKHORFDOXQLRQDVWKHEDUJDLQLQJ FRQWUDFWl  s$ DW    )ROORZLQJ DQ RXWOLQH RI UHSUHVHQWDWLYHRI2O\PSLFjVHPSOR\HHV:HGHWHUPLQHGLQ TXDOLILFDWLRQVIRUKLULQJWUDQVIHUULQJDQGSURPRWLQJLQHDFK 2O\PSLF3ODWLQJWKDWWKHXQGHUO\LQJGLVSXWHWKHUHVROXWLRQ RIWKHMREFODVVLILFDWLRQVWKH$JUHHPHQWGHOLQHDWHVYDULRXV RIZKLFKXQLRQLVWKHSURSHUEDUJDLQLQJUHSUHVHQWDWLYHRIWKH UHTXLUHPHQWVFRQFHUQLQJWKHILOOLQJRIMREYDFDQFLHVmLQDOO FRPSDQ\jVHPSOR\HHVZDVSULPDULO\UHSUHVHQWDWLRQDODQG GHSDUWPHQWVls$DW6SHFLILFDOO\3DUDJUDSKRIWKLV VLPSO\UHIHUULQJWRWKHFODLPDVDmEUHDFKRIFRQWUDFWlZDV VHFWLRQ RI WKH $JUHHPHQW HQWLWOHG m1HZ 2SHUDWLQJ 3ODQW LQVXIILFLHQWIRUSXUSRVHVRI†IHGHUDOFRXUWVjMXULVGLFWLRQ 2SHQLQJlSURYLGHVLQSHUWLQHQWSDUWDVIROORZV 7KHLQVWDQWFDVHKRZHYHUGRHVQRWLQYROYHDGHWHUPLQDWLRQ RI ZKLFK XQLRQ VKRXOG UHSUHVHQW $LU 3URGXFWVj HPSOR\HHV sRERSHQLQJVLQDQHZRSHUDWLQJSODQWZLOOEHILOOHGE\ WKHUH DUH QR FRPSHWLQJ XQLRQV  5DWKHU WKH TXHVWLRQ LV SODQWZLGHELGGLQJIRUDSHULRGRIRQH  \HDUIURPGDWH ZKHWKHU$LU3URGXFWVj&KHPLFDO3ODQWHPSOR\HHVXQGHQLDEO\ RIWKHSRVWLQJRIWKHILUVWMRERSHQLQJ JRYHUQHGE\WKHH[LVWLQJFROOHFWLYHEDUJDLQLQJDJUHHPHQWDUH HQWLWOHGWRMREVDWWKHQHZ3RZHU3ODQW(YHQLIWKLVPDWWHU s$DW  GRHVLPSOLFDWHDFROODWHUDOUHSUHVHQWDWLRQDOLVVXHWKHPDWWHU LVILUVWDQGIRUHPRVWDJHQXLQH6HFWLRQFRQWUDFWGLVSXWH $LU 3URGXFWV PDLQWDLQV WKDW WKH FROOHFWLYH EDUJDLQLQJ DQGLWLVQRWVRmHVVHQWLDOO\UHSUHVHQWDWLRQDOlDVWRSUHFOXGH DJUHHPHQWLVOLPLWHGWRRSHUDWLRQVDWWKH&KHPLFDO3ODQWDQG 6HFWLRQMXULVGLFWLRQ WKHUHLVQRSURYLVLRQH[WHQGLQJLWVWHUPVWRDQ\RWKHUIDFLOLW\ RSHUDWHG E\ $LU 3URGXFWV  ,Q VXSSRUW RI LWV FRQWHQWLRQ LW 0RUHRYHUXQOLNHLQ2O\PSLF3ODWLQJLQWKLVFDVHWKHUHLV UHIHUVWRWKHVWDWHGSXUSRVHRIWKH$JUHHPHQWRXWOLQHGDERYH QRFKDUJHSHQGLQJEHIRUHWKH%RDUG,Q2O\PSLF3ODWLQJWKLV mWRSURYLGHIRUWKHRSHUDWLRQRIWKH&DOYHUW&LW\.HQWXFN\ &RXUW VSHFLILFDOO\ QRWHG WKDW ERWK SURFHHGLQJVWKH RQH LQ &KHPLFDO3ODQWRI$LU3URGXFWVDQG&KHPLFDOV,QFls$DW IHGHUDO FRXUW DQG WKH RQH EHIRUH WKH %RDUGLQYROYHG   ,Q DGGLWLRQ LW VWDWHV WKDW WKH LVVXH DW KDQG LV D HVVHQWLDOO\ WKH VDPH FODLPV DQG RQH GHFLVLRQ ZRXOG mUHSUHVHQWDWLRQDO LVVXHl VSHFLILFDOO\ ZKHWKHU WKH 8QLRQjV QHFHVVDULO\ DQVZHU ERWK FODLPV  +HQFH  WKH\ ZHUH UHSUHVHQWDWLRQVKRXOGEHH[WHQGHGWRWKHQHZ3RZHU3ODQW mPHDQLQJIXOO\LQGLVWLQJXLVKDEOHl)GDW ,QWKH DQGWKDWLVVXHLVXQGHUWKHH[FOXVLYHMXULVGLFWLRQRIWKH1/5%  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV KDYHDmULJKWRISUHIHUHQFHlWRILOOmMREYDFDQFLHVZKHUHWKHUH DQG LV QRW VXEMHFW WR DUELWUDWLRQ  7KH 8QLRQ KRZHYHU DUH QR H[SHULHQFHG SHUVRQQHO ELGGLQJ IRU WKH SRVWHG MREl FRQWHQGVWKDW$UWLFOH;;,,RIWKH$JUHHPHQWDVVWDWHGDERYH s$ DW   $UWLFOH ;;,, RI WKH $JUHHPHQW HQWLWOHG DOORZV IRU DQ DUELWUDWRU WR GHFLGH LI WKH QHZ FRJHQHUDWLRQ m6HQLRULW\lVWDWHVWKDWYDULRXVmRSHUDWLQJGHSDUWPHQWVlZKLFK m3RZHU 3ODQWl LV DQ mRSHUDWLRQDO GHSDUWPHQWl LV SDUW RI PD\ EH DYDLODEOH WR VXFK PHPEHUV LQFOXGH mDQ\ RWKHU m8WLOLWLHVl RU LV mDQ\ RWKHU RSHUDWLQJ SODQW ZKLFK PD\ EH RSHUDWLQJSODQWZKLFKPD\EHDGGHGGXULQJWKHOLIHRIWKLV DGGHGGXULQJWKHOLIHRIWKLVFRQWUDFWls$DW FRQWUDFWls$DW)XUWKHUPRUHWKH$JUHHPHQWVWDWHV WKDWm>M@RERSHQLQJVLQDQHZRSHUDWLQJSODQWZLOOEHILOOHGE\ 2QsXO\WKH'LVWULFW&RXUWHQWHUHGD0HPRUDQGXP SODQWZLGHELGGLQJIRUDSHULRGRIRQH  \HDUIURPWKHGDWH 2SLQLRQ JUDQWLQJ 'HIHQGDQW $LU 3URGXFWVj 0RWLRQ IRU RI WKH SRVWLQJ RI WKH ILUVW MRE RSHQLQJl  s$ DW    6XPPDU\sXGJPHQW,QLWV2SLQLRQWKH'LVWULFW&RXUWZURWH 7KHUHIRUH WKH TXHVWLRQ EHFRPHV   ,V WKH QHZ SODQW DQ DVIROORZV mRSHUDWLQJGHSDUWPHQWlDmQHZRSHUDWLQJSODQWlRULVLWmDQ\ RWKHURSHUDWLQJSODQWZKLFKPD\EHDGGHGGXULQJWKHOLIHRI 7KHPDLQLVVXHEHIRUHWKLVFRXUWLVZKHWKHUWKH&RPSDQ\ WKLV FRQWUDFWl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jDUJXPHQWLVWKDWWKHXQGHUO\LQJ m>$@UELWUDWLRQLVDPDWWHURIFRQVHQWDQGLWZLOOQRWEH GLVSXWHLQYROYHVDUHSUHVHQWDWLRQDOLVVXHZKLFKLVXQGHUWKH LPSRVHG XSRQ SDUWLHV EH\RQG WKH VFRSH RI WKHLU H[FOXVLYHMXULVGLFWLRQRIWKH1/5%,QVXSSRUWRILWVSRVLWLRQ DJUHHPHQWl,GDW6&WDWm>7@KHFRXUWjV $LU 3URGXFWV UHIHUV WR ,QWHUQDWLRQDO %URWKHUKRRG RI UROHLVOLPLWHGWRGHFLGLQJLIWKHSDUW\VHHNLQJDUELWUDWLRQ %RLOHUPDNHUV ,URQ 6KLS %XLOGHUV %ODFNVPLWKV )RUJHUV LVPDNLQJDFODLPZKLFKRQLWVIDFHLVJRYHUQHGE\WKH +HOSHUV$)/&,2Y2O\PSLF3ODWLQJ,QGXVWULHV,QF FRQWUDFWl  *HQHUDO 'ULYHUV 6DOHVPHQ DQG )G WK&LU  LQZKLFKWKLV&RXUWUHFRJQL]HGD :DUHKRXVHPHQjV /RFDO 8QLRQ 1R  Y 0DORQH mVWURQJSROLF\LQIDYRURIXVLQJWKHSURFHGXUHVYHVWHGLQWKH +\GH ,QF  )G   WK &LU  FLWDWLRQV %RDUGIRUUHSUHVHQWDWLRQDOGHWHUPLQDWLRQVLQRUGHUWRSURPRWH RPLWWHG  LQGXVWULDOSHDFHl)GDW  FLWDWLRQRPLWWHG ,Q 2O\PSLF 3ODWLQJ WKH ,QWHUQDWLRQDO XQLRQ ILOHG DQ DFWLRQ s$DW DJDLQVW WKH HPSOR\HU FODLPLQJ mEUHDFK RI FRQWUDFWl  7KH ,QWHUQDWLRQDODOVRILOHGDQDFWLRQZLWKWKH%RDUGDJDLQVWWKH ,QVWDWLQJWKDWWKH8QLRQjVmEUHDFKRIFRQWUDFWFODLPUDLVHV HPSOR\HUDQGWKHORFDOXQLRQIRUmXQIDLUODERUSUDFWLFHl7KLV LVVXHVRIUHSUHVHQWDWLRQlWKH'LVWULFW&RXUWFRQFOXGHGWKDWWKH &LUFXLW GHWHUPLQHG WKDW UHJDUGOHVV RI KRZ WKH mEUHDFK RI 8QLRQmFDQQRWDYRLGWKH1/5%jVH[FOXVLYHMXULVGLFWLRQE\ FRQWUDFWFODLPlZDVFKDUDFWHUL]HGWKHFODLPVEHIRUHWKHFRXUW FKDUDFWHUL]LQJZKDWLVHVVHQWLDOO\DUHSUHVHQWDWLRQLVVXHDVD DQGWKH%RDUGZHUHmYLUWXDOO\LGHQWLFDOlDQGWKHXQGHUO\LQJ EUHDFKRIFRQWUDFWLVVXHl7KXVDVWKH'LVWULFW&RXUWKHOGWKH VXEVWDQFH RI WKH WZR FODLPV ZHUH mPHDQLQJIXOO\  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV ZLWKLQ GLVSXWHmLQYROYHVVWDWXWRU\LQWHUSUHWDWLRQZLWKLQWKH SURSHUO\ DVVLJQDEOH WR ZLWKLQ WKH FRQWUDFWXDOO\ UHFRJQL]HG H[FOXVLYHMXULVGLFWLRQRIWKH1/5%l,G EDUJDLQLQJXQLWl )GDW,QREVHUYLQJWKHGHFLVLRQ UHDFKHG E\ WKH 6XSUHPH &RXUW LQ &DUH\ VXSUD WKLV &RXUW )ROORZLQJ WKH 'LVWULFW &RXUWjV 0HPRUDQGXP 2SLQLRQ FRQFOXGHGLQ'RZWKDWUHJDUGOHVVRIWKHGLVSXWHFRQVLGHUHG 3ODLQWLII8QLRQILOHGD0RWLRQIRU5HFRQVLGHUDWLRQZKLFKZDV ZKHWKHURQHLQYROYLQJZRUNDVVLJQPHQW DVVWDWHGDERYH RU GHQLHG,QLWV0HPRUDQGXP2SLQLRQDQG2UGHURI2FWREHU RQHFRQFHUQLQJUHSUHVHQWDWLRQmZHVHHQREDUULHUWRWKHXVH GHQ\LQJ3ODLQWLIIjV0RWLRQWKH'LVWULFW&RXUWKHOGDV RI WKH DUELWUDWLRQ SURFHGXUHl EHFDXVH m>L@I LW LV D ZRUN IROORZV DVVLJQPHQWGLVSXWHDUELWUDWLRQFRQYHQLHQWO\ILOOVDJDSDQG DYRLGV WKH QHFHVVLW\ RI D VWULNH WR EULQJ WKH PDWWHU WR WKH 7KH IDFWV LQGLFDWH WKDW ZKLOH WKLV GLVSXWH PD\ LQYROYH %RDUG,ILWLVDUHSUHVHQWDWLRQPDWWHUUHVRUWWRDUELWUDWLRQ LVVXHV RI FRQWUDFW LQWHUSUHWDWLRQ LW LV HVVHQWLDOO\ DQ PD\KDYHDSHUYDVLYHFXUDWLYHHIIHFWl'RZ )GDW DUJXPHQWRYHUZKHWKHU>WKH8QLRQjV@FRQWUDFWFRYHUVWKH  TXRWLQJ&DUH\Y:HVWLQJKRXVH(OHF&RUS86DW HPSOR\HHV DW WKH QHZ $LU 3URGXFWV 3RZHU 3ODQW LH    :H WKHUHIRUH DIILUPHG WKH GHFLVLRQ RI WKH GLVWULFW ZKHWKHULWUHSUHVHQWVWKRVHHPSOR\HHVm,QVXFKFDVHV FRXUW LQ 'RZ WR RUGHU WKH VXEPLVVLRQ RI JULHYDQFHV WR ZKHUH WKH >1/5%jV@ UHVROXWLRQ RI QRQFRQWUDFWXDO DUELWUDWLRQ LQ DFFRUGDQFH ZLWK WKH SDUWLHVj FROOHFWLYH >UHSUHVHQWDWLRQDO@ LVVXHV FRXOG DOVR UHVROYH WKH EDUJDLQLQJDJUHHPHQW FRQWURYHUVLDO EUHDFK RI FRQWUDFW FODLPV EURXJKW XQGHU †  WKH IHGHUDO FRXUWV VKRXOG GHFOLQH WR H[HUFLVH ,QWKHFDVHDWKDQG8QLRQPHPEHUVZKRZHUHHPSOR\HGDW MXULVGLFWLRQ RYHU WKH FRQWUDFWXDO DOOHJDWLRQVl WKH &KHPLFDO 3ODQW RSHUDWHG E\ $LU 3URGXFWV DWWHPSWHG WR ,QWHUQDWLRQDO %URWKHUKRRG RI %RLOHUPDNHUV ,URQ 6KLS H[HUFLVHVHQLRULW\ULJKWVWRWKHQHZMREVLQWKH3RZHU3ODQW EXLOGHUV%ODFNVPLWKV)RUJHUV +HOSHUV$)/&,2Y :KHQ$LU3URGXFWVUHIXVHGWKHLUDWWHPSWVWKH8QLRQILOHGD 2O\PSLF3ODWLQJ,QGXVWULHV,QF)G JULHYDQFH VWDWLQJ WKDW $LU 3URGXFWV ZDV LQ YLRODWLRQ RI WKH WK&LU   FXUUHQWFROOHFWLYHEDUJDLQLQJDJUHHPHQWE\UHIXVLQJWRDOORZ XQLWHPSOR\HHVWRH[HUFLVHWKHLUVHQLRULW\ULJKWVWRWKHMREV s$DW WKDWZLOOEHDYDLODEOHDWWKHQHZ3RZHU3ODQW$LU3URGXFWV LQGHQ\LQJWKHJULHYDQFHVWDWHGWKDWWKHFXUUHQWEDUJDLQLQJ 2Q2FWREHUWKH8QLRQILOHGWKHZLWKLQ$SSHDO XQLWHPSOR\HHVRIWKH&DOYHUW&LW\&KHPLFDO3ODQWKDGmQR 7KH 8QLRQ DSSHDOV WKH 'LVWULFW &RXUWjV 2UGHU JUDQWLQJ FRQWUDFWXDOULJKWVWRWKHMREVlDWWKHQHZSODQW 'HIHQGDQW$LU3URGXFWVj0RWLRQIRU6XPPDU\sXGJPHQW,W DOVRDSSHDOVWKH'LVWULFW&RXUWjV2UGHUGHQ\LQJLWV0RWLRQIRU 7KH GLVSXWH ZKLFK XQGHUOLHV WKH JULHYDQFH ILOHG E\ WKH 5HFRQVLGHUDWLRQ 8QLRQFRQFHUQVZKHWKHUWKHFXUUHQW8QLRQPHPEHUVRIWKH &KHPLFDO3ODQWKDYHVHQLRULW\IRUWKHQHZMREVDWWKH3RZHU ,,',6&866,21 3ODQWZKHWKHUWKRVHPHPEHUVKDYHDQ\ULJKWVWRWKHZRUNDW WKHQHZSODQW,WLVDTXHVWLRQRIZRUNDVVLJQPHQW,QRUGHU $6WDQGDUGRI5HYLHZ WR GHWHUPLQH ZKHWKHU WKH FXUUHQW EDUJDLQLQJ XQLW VHQLRU :HUHYLHZDGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWGH HPSOR\HHVKDYHDQ\mFRQWUDFWXDOULJKWVlWRWKHMREVDWWKHQHZ QRYR8QLWHG1DWjO,QV&RY667)LWQHVV&RUS)G SODQWRQHPXVWORRNWRWKHFRQWUDFWWKHFROOHFWLYHEDUJDLQLQJ   WK&LU 6XPPDU\sXGJPHQWLVDSSURSULDWH DJUHHPHQWLQH[LVWHQFHEHWZHHQ$LU3URGXFWVDQGWKH8QLRQ LIWKHHYLGHQFHYLHZHGLQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQ 7KH$JUHHPHQWSURYLGHVWKDWPHPEHUVZLWKmSODQWVHQLRULW\l  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV EDUJDLQLQJDJUHHPHQWZLWKUHVSHFWWRVHQLRULW\GHWHUPLQDWLRQ PRYDQWHVWDEOLVKHVmWKDWWKHUHLVQRJHQXLQHLVVXHDVWRDQ\ DQGDSSOLFDWLRQDVZHOODVLPSURSHUZRUNDVVLJQPHQW7KH PDWHULDO IDFW DQG WKDW WKH PRYLQJ SDUW\ LV HQWLWOHG WR D 8QLRQILOHGDQDFWLRQLQGLVWULFWFRXUWSXUVXDQWWR6HFWLRQ MXGJPHQWDVDPDWWHURIODZl)HG5&LY3 F VHHDOVR RI WKH /05$  'RZ &RUQLQJ FRQWHQGHG WKDW   WKH 7HUU\%DUU6DOHV$JHQF\,QFY$OO/RFN&R )G DUELWUDWLRQDJUHHPHQWRIWKHSDUWLHVVSHFLILFDOO\H[FOXGHGWKH  WK&LU  6HH$GYDQFH:DWFK&R/WGY.HPSHU JULHYDQFHV IURP VXEPLVVLRQ WR DUELWUDWLRQ EHFDXVH FHUWDLQ 1DWjO,QV&R )G   WK&LU   SURFHGXUDOSUHUHTXLVLWHVKDGQRWEHHQIROORZHG DQG  WKH XQGHUO\LQJ JULHYDQFHV ZKLFK DPRXQWHG WR DOOHJDWLRQV RI %$QDO\VLV XQIDLUODERUSUDFWLFHVDQGRUUHSUHVHQWDWLRQLVVXHVDUHZLWKLQ WKHMXULVGLFWLRQRIWKH1/5%DQGWKHUHIRUHWKHFRXUWVKRXOG 7KH'LVWULFW&RXUWGHWHUPLQHGWKDWWKH8QLRQjVEUHDFKRI KDYHVWD\HGLWVGHFLVLRQWRFRPSHODUELWUDWLRQ'RZ )G FRQWUDFW FODLP UDLVHV LVVXHV RI UHSUHVHQWDWLRQ EHFDXVH WKH DW 8QLRQ FODLPV WKDW WKH VFRSH RI WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQWH[WHQGVWRWKH3RZHU3ODQWZKLFKLVRSHUDWHGE\ :LWKUHVSHFWWR'RZ&RUQLQJjVFRQWHQWLRQFRQFHUQLQJWKH $LU3URGXFWVDQGLVDGMDFHQWWRWKH&KHPLFDO3ODQWDQGWKH 1/5%jV MXULVGLFWLRQ WR KHDU GLVSXWHV XQGHUO\LQJ WKH 8QLRQLVmDVVHUWLQJLWVHOIDVWKHFROOHFWLYHEDUJDLQLQJDJHQWRI JULHYDQFHV ZH GHWHUPLQHG WKDW WKH IDFW WKDW WKH DOOHJHG WKHHPSOR\HHVDWWKHVHSDUDWHIDFLOLW\ls$DW+DYLQJ FRQWUDFWYLRODWLRQVPD\DOVREHXQIDLUODERUSUDFWLFHVZLWKLQ GHWHUPLQHG WKDW WKH FUX[ RI WKH PDWWHU LV mHVVHQWLDOO\ D WKHH[FOXVLYHMXULVGLFWLRQRIWKH1/5%GRHVQRWGHSULYHWKH UHSUHVHQWDWLRQLVVXHlZKLFKLVFKDUDFWHUL]HGDVDEUHDFKRI FRXUWRIMXULVGLFWLRQRYHUWKH8QLRQjV6HFWLRQDFWLRQ FRQWUDFWLVVXHWKH'LVWULFW&RXUWFRQFOXGHGWKDWWKHSDUWLHVj )GDW7KLVLVWUXHZKHWKHUWKHGLVSXWHFRQFHUQVXQIDLU GLVSXWHLVZLWKLQWKHH[FOXVLYHMXULVGLFWLRQRIWKH1/5% ODERUSUDFWLFHVRUODZVXLWVWRFRPSHODUELWUDWLRQRIJULHYDQFHV VXFK DV SD\ UDWHV DQG KRXUV RI ZRUN  ,G DW   7KH 8SRQUHYLHZKRZHYHUZHFRQFOXGHWKDWWKH'LVWULFWFRXUW DXWKRULW\RIWKH%RDUGWRGHDOZLWKDQXQIDLUODERUSUDFWLFH LPSURSHUO\ JUDQWHG VXPPDU\ MXGJPHQW LQ IDYRU RI WKH ZKLFKDOVRYLRODWHVDFROOHFWLYHEDUJDLQLQJFRQWUDFWmLVQRW 'HIHQGDQW$LU3URGXFWV7KLVFDVHLVDPDWWHUSULPDULO\RI GLVSODFHG E\ †  EXW LW LV QRW H[FOXVLYH DQG GRHV QRW FRQWUDFW LQWHUSUHWDWLRQ ZKLOH SRWHQWLDOO\ LPSOLFDWLQJ GHVWUR\WKHMXULVGLFWLRQRIWKHFRXUWVLQVXLWVXQGHU† UHSUHVHQWDWLRQDOLVVXHV3XUVXDQWWR6HFWLRQRIWKH/DERU 7KHFRQFHSWWKDWDOOVXLWVWRYLQGLFDWHLQGLYLGXDOHPSOR\HH 0DQDJHPHQW 5HODWLRQV $FW m/05$l  DQG LQ DFFRUGDQFH ULJKWVDULVLQJIURPDFROOHFWLYHEDUJDLQLQJFRQWUDFWVKRXOGEH ZLWKWKHODZLQWKLV&LUFXLWZHILQGWKDWIHGHUDOFRXUWVPD\ H[FOXGHGIURPWKHFRYHUDJHRI†KDVWKXVQRWVXUYLYHGl KDYHMXULVGLFWLRQWRH[DPLQHDOOHJHGYLRODWLRQVRIDJUHHPHQWV 'RZ   )G DW  TXRWLQJ 6PLWK Y (YHQLQJ 1HZV 0RUHRYHUZHILQGWKDWWKHSDUWLFXODUFRQWUDFWDWLVVXHWKH $VVjQ  86         :H WKHUHIRUH FROOHFWLYHEDUJDLQLQJDJUHHPHQWEHWZHHQWKH8QLRQDQG$LU FRQFOXGHG WKDW LW ZRXOG EH LQDSSURSULDWH WR ZLWKKROG 3URGXFWVRQLWVIDFHSURYLGHVIRUDUELWUDWLRQRIWKHPDWWHU HQIRUFHPHQWRIWKHDUELWUDWLRQDJUHHPHQW )GDW RXWOLQHGLQWKH8QLRQjVJULHYDQFH7KXVZKHUHQHLWKHUWKH 8QLRQQRU$LU3URGXFWVKDVVRXJKWWRLQYRNHWKHSRZHUVRI 'RZ &RUQLQJ FRQWHQGHG DOVR WKDW RQH RI WKH JULHYDQFHV WKH1/5%DQGWKHGLVSXWHGLVVXHLVRIDFRQWUDFWXDOQDWXUH FRQFHUQHG D UHSUHVHQWDWLRQDO GLVSXWH ZKLFK LV ZLWKLQ WKH DIHGHUDOFRXUWPD\SURSHUO\H[HUFLVHLWVMXULVGLFWLRQRYHUWKH 1/5%jVMXULVGLFWLRQ,QWKLVUHVSHFWWKH&RPSODLQWVWDWHG PDWWHU WKDW WKH SDUWLFXODU JULHYDQFH mSURWHVWV WKH GHIHQGDQWjV SHUIRUPDQFH RI ZRUN DW LWV 0LGODQG &RUSRUDWH &HQWHU  3DSHU$OOLHG,QGXVWULDOY 1R 1R 3DSHU$OOLHG,QGXVWULDOY  $LU3URGXFWV &KHPLFDOV $LU3URGXFWV &KHPLFDOV sXULVGLFWLRQ VWDWHWULEXQDOVLVSURSHUQRWZLWKVWDQGLQJWKHDYDLODELOLW\RIDQ DOWHUQDWLYHUHPHG\EHIRUHWKH1/5%86 6HFWLRQ  D  RI WKH /DERU 0DQDJHPHQW 5HODWLRQV $FW m/05$l YHVWVIHGHUDOFRXUWVZLWKMXULVGLFWLRQWRH[DPLQH &DUH\FRQFHUQHGDmMXULVGLFWLRQDOl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mZH VHH QR FRQWURYHUV\RUZLWKRXWUHJDUGWRWKHFLWL]HQVKLSRIWKH EDUULHUWRXVHRIWKHDUELWUDWLRQSURFHGXUHl86DW SDUWLHV 7KH&RXUWFRQWLQXHG 86&† D 7KH8QLWHG6WDWHV6XSUHPH&RXUWKDV ,I LW LV D ZRUN DVVLJQPHQW GLVSXWH DUELWUDWLRQ KHOGWKDW6HFWLRQGRHVPRUHWKDQFRQIHUMXULVGLFWLRQ LW FRQYHQLHQWO\ ILOOV D JDS DQG DYRLGV WKH QHFHVVLW\ RI D mH[SUHVVHVDIHGHUDOSROLF\WKDWIHGHUDOFRXUWVVKRXOGHQIRUFH VWULNH WR EULQJ WKH PDWWHU WR WKH %RDUG  ,I LW LV D >VXFK@ DJUHHPHQWVDQG WKDW LQGXVWULDO SHDFH FDQ EH EHVW UHSUHVHQWDWLRQ PDWWHU UHVRUW WR DUELWUDWLRQ PD\ KDYH D REWDLQHGRQO\LQWKDWZD\l7H[WLOH:RUNHUV8QLRQRI$PY SHUYDVLYHFXUDWLYHHIIHFWHYHQWKRXJKRQHXQLRQLVQRWD /LQFROQ0LOOV86    SDUW\%\DOORZLQJWKHGLVSXWHWRJRWRDUELWUDWLRQLWV IUDJPHQWDWLRQ LV DYRLGHG WR D VXEVWDQWLDO H[WHQW  DQG 0RUHRYHU WKH 6XSUHPH &RXUW KDV KHOG WKDW HYHQ LI WKH WKRVH FRQFLOLDWRU\ PHDVXUHV ZKLFK &RQJUHVV GHHPHG FRQWUDFW GLVSXWH LQYROYHV D UHSUHVHQWDWLRQDO TXHVWLRQ DQG YLWDO WR mLQGXVWULDO SHDFHl >FLWLQJ 7H[WLOH :RUNHUV Y mHYHQWKRXJKDQDOWHUQDWLYHUHPHG\EHIRUHWKH%RDUGLV /LQFROQ 0LOOV  86 @ DQG ZKLFK PD\ EH DYDLODEOHl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