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 D S

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

//2<' ' $/.,5( ; 3ODLQWLII$SSHOODQW    1R Y  !  s8'*( s$1( ,59,1*HWDO  'HIHQGDQWV$SSHOOHHV  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ 1R n'DYLG''RZGsU'LVWULFWsXGJH $UJXHG 0DUFK 'HFLGHGDQG)LOHG 6HSWHPEHU %HIRUH 0225(DQG&2/(&LUFXLWsXGJHV 7$512: 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('   *DU\ 0 6PLWK (48$/ s867,&( )281'$7,21&ROXPEXV2KLRIRU$SSHOODQW7LPRWK\7 5HLG5(,'%(55<0$56+$// :$5*2&OHYHODQG

7KH +RQRUDEOH $UWKXU s 7DUQRZ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  $ONLUHY,UYLQJHWDO 1R

2KLRIRU$SSHOOHHV21%5,() *DU\06PLWK(48$/ s867,&( )281'$7,21 &ROXPEXV 2KLR (GZDUG $ ,FRYH60,7+ &21'(1,&OHYHODQG2KLRIRU$SSHOODQW 7LPRWK\75HLG5(,'%(55<0$56+$// :$5*2 &OHYHODQG2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB ,,1752'8&7,21 $57+85s7$512:'LVWULFWsXGJH3ODLQWLII/OR\G' $ONLUH ZDV DUUHVWHG IRU GUXQN GULYLQJ DQG KHOG DOPRVW VHYHQW\WZRKRXUVZLWKRXWDSUREDEOHFDXVHKHDULQJ+HZDV VXEVHTXHQWO\LQFDUFHUDWHGIRUIDLOXUHWRDSSHDUIRUVKRZFDXVH KHDULQJVDQGIDLOXUHWRSD\ILQHVDQGFRXUWFRVWV$ONLUHVXHG GHIHQGDQWV +ROPHV &RXQW\ sXGJH sDQH ,UYLQJ +ROPHV &RXQW\ &RXUW DQG 6KHULII 7LPRWK\ =LPPHUO\ XQGHU  86& †   DUJXLQJ WKDW KLV FRQVWLWXWLRQDO ULJKWV ZHUH YLRODWHGE\KLVZDUUDQWOHVVGHWHQWLRQDQGFLYLOGHEWUHODWHG LQFDUFHUDWLRQ$IWHUDSDUWLDOVHWWOHPHQWGLVSRVHGRIVHYHUDO LVVXHVLQWKHFDVHWKHGLVWULFWFRXUWGHQLHG$ONLUHjVVXPPDU\ MXGJPHQWPRWLRQDQGJUDQWHGGHIHQGDQWjVVXPPDU\MXGJPHQW PRWLRQ RQ WKH UHPDLQLQJ FRQVWLWXWLRQDO LVVXHV UDLVHG  7KH GLVWULFWFRXUWDOVRGHQLHG$ONLUHjVFODVVFHUWLILFDWLRQPRWLRQ 7KLVDSSHDOIROORZHG $ONLUHUDLVHVILYHLVVXHVLQKLVDSSHDO7KHILUVWIRXUDVN ZKHWKHUWKHGLVWULFWFRXUWSURSHUO\GHQLHG$ONLUHjVVXPPDU\ MXGJPHQWPRWLRQDQGJUDQWHGGHIHQGDQWjVVXPPDU\MXGJPHQW PRWLRQ DV WR WKH OLDELOLW\ RI +ROPHV &RXQW\ DQG 6KHULII =LPPHUO\IRUYLRODWLQJ$ONLUHjV   )RXUWK$PHQGPHQWULJKW QRWWREHKHOGRQDZDUUDQWOHVVDUUHVWZLWKRXWDUUDLJQPHQWIRU IRUW\HLJKWKRXUV   7KLUWHHQWK$PHQGPHQWULJKWQRWWREH LPSULVRQHGIRUDFLYLOGHEW   )RXUWHHQWK$PHQGPHQWULJKW WRGXHSURFHVVDQGHTXDOSURWHFWLRQIRUIDLOLQJWRDOORZFUHGLW WRZDUGILQHVDQGFRVWVIRUWLPHVHUYHG DQG  )RXUWHHQWK $PHQGPHQWULJKWQRWWRORVHKLVOLEHUW\GXHWRLQGLJHQF\7KH ILIWK LVVXH RQ DSSHDO LV ZKHWKHU WKH GLVWULFW FRXUW SURSHUO\  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

FODVV DFWLRQ LV D VXSHULRU PHWKRG IRU DGMXGLFDWLRQ GHQLHG$ONLUHjVPRWLRQIRUFODVVFHUWLILFDWLRQ)RUWKHUHDVRQV &RQVHTXHQWO\ $ONLUHjV DUJXPHQW WKDW RQO\ RQH FRPPRQ VWDWHG EHORZ ZH 5(9(56( WKH GLVWULFW FRXUW RQ WKH ILUVW TXHVWLRQ LV QHFHVVDU\ IRU FODVV FHUWLILFDWLRQ GRHV QRW DSSO\ LVVXH DQG 5(0$1' WR WKH GLVWULFW FRXUW IRU IXUWKHU XQGHUWKHW\SH,,,DQDO\VLV7KHGLVWULFWFRXUWjVILQGLQJWKDW SURFHHGLQJV:H$)),50WKHGLVWULFWFRXUWRQWKHVHFRQG QXPHURXVIDFWXDOLVVXHVVXFKDVYDU\LQJUHDVRQVIRUDUUHVW WKLUGIRXUWKDQGILIWKLVVXHV YDU\LQJOHQJWKVRIVWD\DQGYDU\LQJILQDQFLDOVLWXDWLRQVmGR QRWZDUUDQWFODVVWUHDWPHQWlLVHYHQVWURQJHUZKHQUHYLHZHG ,,)$&78$/+,6725< XQGHUWKHW\SH,,,UHTXLUHPHQWV$FFRUGLQJO\ZHDIILUPWKH GLVWULFW FRXUWjV GHQLDO RI $ONLUHjV PRWLRQ IRU FODVV 2Q6DWXUGD\$XJXVW  DW DPSODLQWLII/OR\G FHUWLILFDWLRQ $ONLUHZDVDUUHVWHGIRUGULYLQJZKLOHLQWR[LFDWHG m':,l  $ONLUH ZDV WDNHQ WR WKH +ROPHV &RXQW\ sDLO ZKHUH KH 9,&21&/86,21 UHPDLQHGDOOZHHNHQG7KHUHZDVDZDUUDQWIRU$ONLUHIURP DQRWKHUMXULVGLFWLRQ7KHSDUWLHVGLVSXWHZKHWKHU$ONLUHZDV )RUWKHIRUHJRLQJUHDVRQVZH5(9(56(WKHGLVWULFWFRXUW KHOGRQWKH':,DUUHVWRUWKHZDUUDQW$ONLUHZDVDUUDLJQHG ZLWKUHVSHFWWRLWVJUDQWRIGHIHQGDQWjVVXPPDU\MXGJPHQW LQ+ROPHV&RXQW\&RXUWEHIRUHsXGJHsDQH,UYLQJRQ7XHVGD\ PRWLRQDVWRWKHOLDELOLW\RI6KHULII=LPPHUO\DQG+ROPHV PRUQLQJ$XJXVW oDOPRVWVHYHQW\WZRKRXUVDIWHU &RXQW\IRUSRWHQWLDOO\YLRODWLQJ$ONLUHjV)RXUWK$PHQGPHQW KLVDUUHVW1RSUREDEOHFDXVHKHDULQJZDVKHOGSULRUWRWKH ULJKWQRWWREHGHWDLQHGPRUHWKDQIRUW\HLJKWKRXUVZLWKRXW $XJXVWQGKHDULQJ D SUREDEOH FDXVH KHDULQJ DQG 5(0$1' IRU IXUWKHU SURFHHGLQJV:H$)),50WKHGLVWULFWFRXUWRQLWVJUDQWRI $W D VXEVHTXHQW KHDULQJ RQ 6HSWHPEHU    $ONLUH GHIHQGDQWVjVXPPDU\MXGJPHQWPRWLRQVRQWKHRWKHUWKUHH SOHDGHGQRFRQWHVWWRWKH':,FKDUJHV+HZDVVHQWHQFHGWR FRQVWLWXWLRQDOLVVXHV:HDOVR$)),50WKHGLVWULFWFRXUWjV ILIWHHQGD\VLQMDLODQGILQHGDQGFRXUWFRVWVRIIRU GHQLDORI$ONLUHjVPRWLRQIRUFODVVFHUWLILFDWLRQ DWRWDORI$ONLUHVLJQHGDSD\PHQWFRQWUDFWDJUHHLQJWR SD\PRQWKO\LQVWDOOPHQWVVWDUWLQJ6HSWHPEHU  1R LQTXLU\ ZDV PDGH LQWR $ONLUHjV DELOLW\ WR SD\ EXW LW DSSHDUV IURP WKH UHFRUG WKDW KH VLJQHG WKH FRQWUDFW YROXQWDULO\ $ONLUHGLGQRWPDNHDQ\SD\PHQWVWRZDUGWKHPRQH\RZHG 'XHWR$ONLUHjVIDLOXUHWRSD\RQ1RYHPEHU sXGJH ,UYLQJVLJQHGDVKRZFDXVHOHWWHURUGHULQJKLPWRDSSHDUDWD KHDULQJ RQ 'HFHPEHU    DW   DP  7KH OHWWHU DGYLVHG WKDW IDLOXUH WR DSSHDU RU WR SD\ WKH DPRXQW RZHG   LQ IXOO ZRXOG UHVXOW LQ WKH LVVXDQFH RI D EHQFK ZDUUDQW IRU $ONLUHjV DUUHVW  $ONLUH UHVSRQGHG ZLWK D OHWWHU

 7KHUH LV QR H[SODQDWLRQ LQ WKH UHFRUG IRU WKH GLVFUHSDQF\ EHWZHHQ  DQG   $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

GDWHG1RYHPEHU ZKLFKLQIRUPHGsXGJH,UYLQJWKDW URXWLQHDSSOLFDWLRQRIWKHLOOHJDOSROLFLHVXOWLPDWHO\SURYHQE\ KHZDVGLVDEOHGDQGH[SODLQHGKLVILQDQFLDOGLIILFXOWLHV WKH>GHIHQGDQWVjRZQ@GHSRVLWLRQVlDQGFRPPRQTXHVWLRQVRI ODZ LQFOXGLQJ LVVXHV RQH WKURXJK IRXU SUHVHQWHG LQ WKLV $ONLUHGLGQRWDSSHDUIRUWKH'HFHPEHU KHDULQJ DSSHDO sXGJH,UYLQJLVVXHGDEHQFKZDUUDQWIRUKLVDUUHVW$ONLUHVHQW D VHFRQG OHWWHU GDWHG 'HFHPEHU    H[SODLQLQJ KLV 2XUUHYLHZLVIRUDEXVHRIGLVFUHWLRQDQGWKHGLVWULFWFRXUW IDLOXUHWRDSSHDUDWWKHKHDULQJ7KHOHWWHUVWDWHGWKDWKHZDV GLG QRW DEXVH LWV GLVFUHWLRQ LQ DSSO\LQJ WKH FODVV DFWLRQ LQ WKH KRVSLWDO RQ WKH KHDULQJ GDWH IXUWKHU H[SODLQHG KLV SUHUHTXLVLWHV7KHUHDUHHQRUPRXVYDULDWLRQVLQWKHIDFWXDO ILQDQFLDO GLIILFXOWLHV DQG RXWOLQHG KLV LQDELOLW\ WR ILQG DQG OHJDO EDFNJURXQGV VXUURXQGLQJ WKH KXQGUHGV RI FDVHV HPSOR\PHQW $ONLUHDVVHUWVPLJKWTXDOLI\IRUFODVVPHPEHUVKLS$FODVV DFWLRQFDQQRWEHFHUWLILHGXQOHVVWKHUHVROXWLRQRIWKHFRPPRQ 2Q0D\ $ONLUHZDVDUUHVWHGRQWKHRXWVWDQGLQJ LVVXHV mZLOO DGYDQFH WKH OLWLJDWLRQl  6SUDJXH  )G DW EHQFKZDUUDQW$WDKHDULQJRQ0D\ sXGJH,UYLQJ    7KH GLVWULFW FRXUW QHLWKHU DSSOLHG WKH ZURQJ OHJDO IRXQG$ONLUHLQFRQWHPSWDQGVHQWHQFHGKLPWRWKLUW\GD\VLQ VWDQGDUGLQH[DPLQLQJWKHVHWZRHOHPHQWVQRUGLGLWPLVDSSO\ MDLOIRUmIDLOLQJWRSD\DQ\ILQHRUFRVWVl7KHsXGJHIXUWKHU WKH FRUUHFW OHJDO VWDQGDUG  7KH FRXUW FRUUHFWO\ SODFHG WKH VWDWHGWKDW$ONLUHFRXOGZRUNRIIWKHILQHDQGFRVWV7KHUH EXUGHQRIGHPRQVWUDWLQJKLVULJKWWRFODVVFHUWLILFDWLRQDQG ZDVQRLQTXLU\DWWKHKHDULQJLQWR$ONLUHjVDELOLW\WRSD\ FRQFOXGHG WKDW $ONLUH GLG QRW PHHW KLV EXUGHQ  6XFK D FRQFOXVLRQZDVQRWDQDEXVHRIGLVFUHWLRQ $ONLUHVHUYHGWKHWKLUW\GD\VHQWHQFHIURP0D\ WR s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jVSROLF\GRHVQRWDOORZGHIHQGDQWVWRZRUNRIIWKHLU GLVWULFW FRXUW QRWHG WKRXJK WKH VWLSXODWHG VHWWOHPHQW FRXUWFRVWVVR$ONLUHFDOFXODWHVWKDWDIWHUWKHWKLUW\GD\VLQ UHJDUGLQJGHFODUDWRU\DQGLQMXQFWLYHUHOLHIGHPRQVWUDWHVWKDW MDLO KH VWLOO RZHG FRXUW FRVWV LQ WKH DPRXQW RI  $ONLUHKDVmREWDLQHGDOOWKHUHOLHIIXWXUHSRWHQWLDOSODLQWLIIV +RZHYHU +ROPHV &RXQW\ &RXUW UHFRUGV LQGLFDWH KH RZHG ZRXOGZDQWRUQHHGl$ONLUH HYHQDJUHHVZLWKWKHGLVWULFW   FRXUWjV FRQFOXVLRQ RQ WKLV SRLQW VWDWLQJ WKH KH GRHV QRW GLVSXWH WKH GLVWULFW FRXUWjV KROGLQJ mDV WR D FODVV RI IXWXUH PHPEHUV     7KH VWLSXODWLRQV GR SURYLGH VXIILFLHQW SURWHFWLRQIRUWKHLULQWHUHVWVl7KXV$ONLUHFDQQRWPDLQWDLQ  DW\SH,,FODVVDFWLRQ 7KH GDWH VWDPS LQGLFDWHV WKDW WKH OHWWHU ZDV ILOHG RQ 6HSWHPEHU    ZKLFK ZRXOG EH EHIRUH WKH FRXUW VHQW WKH ILUVW VKRZ FDXVH OHWWHU $ONLUH DUJXHV WKDW WKLV GHPRQVWUDWHV KH ZDV EHLQJ SURDFWLYH DERXW KLV $ONLUHjVTXDUUHOZLWKWKHGLVWULFWFRXUWWKHQLVLWVIDLOXUHWR LQDELOLW\ WR PHHW WKH SD\PHQW VFKHGXOH +RZHYHU WKH OHWWHU LWVHOI LV GDWHG FHUWLI\ D W\SH ,,, FODVV DFWLRQ ZKHUH PRQHWDU\ GDPDJHV 1RYHPEHU    ,Q DGGLWLRQ WKH OHWWHU UHIHUV WR m\RXU OHWWHU ODVW SUHGRPLQDWH+RZHYHUKHLJQRUHVWKHUHTXLUHPHQWVRIDW\SH ZHHNl DSSDUHQWO\ UHIHUHQFLQJ WKH sXGJHjV VKRZ FDXVH OHWWHU ZKLFK ZDV VLJQHG RQ 1RYHPEHU    7KXV ZH ZLOO DVVXPH WKDW WKH GDWH VWDPS ,,,FODVVDFWLRQZKLFKLQFOXGHDVKRZLQJWKDWWKHFRPPRQ ZDV LQDFFXUDWH DQG WKH FRUUHFW GDWH LV 1RYHPEHU    DV OLVWHG LQ WKH TXHVWLRQVSUHGRPLQDWHRYHUWKHLQGLYLGXDORQHVDQGWKDWWKH OHWWHU  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

GHFODUDWRU\UHOLHI)(' 5 &,9 3 E  7\SH,,,UHTXLUHV )LYHGD\VDIWHUKLVUHOHDVHRQsXQH DQRWKHUVKRZ WKDWmWKHFRXUWILQG>@WKDWWKHTXHVWLRQVRIODZRUIDFWFRPPRQ FDXVHOHWWHUZDVVHQWWR$ONLUHIRUIDLOXUHWRSD\WKH  WRWKHPHPEHUVRIWKHFODVVSUHGRPLQDWHRYHUDQ\TXHVWLRQV DPRXQW7KHOHWWHUVHWDKHDULQJGDWHRIsXO\ DQG DIIHFWLQJRQO\LQGLYLGXDOPHPEHUVDQGWKDWDFODVVDFWLRQLV VWDWHGWKDWKHZDVUHTXLUHGWRHLWKHUSD\LQIXOOEHIRUHWKHGDWH VXSHULRUWRRWKHUDYDLODEOHPHWKRGVIRUWKHIDLUDQGHIILFLHQW RUDSSHDU$ONLUHDJDLQIDLOHGWRDSSHDUsXGJH,UYLQJIRXQG DGMXGLFDWLRQRIWKHFRQWURYHUV\l)(' 5 &,9 3 E   KLPLQFRQWHPSWIRUmIDLOXUHWRREH\DSUHYLRXVRUGHUlDQG LVVXHGDQRWKHUEHQFKZDUUDQW$ONLUHZDVDUUHVWHGRQsXO\  7KH GLVWULFW FRXUWjV GHQLDO RI $ONLUHjV PRWLRQ IRU FODVV  DQGUHOHDVHGRQKLVRZQUHFRJQL]DQFHRQsXO\  FHUWLILFDWLRQVXUYLYHVDEXVHRIGLVFUHWLRQUHYLHZ2QWKHILUVW 7KHERQGQRWLFHVHWDKHDULQJGDWHRI$XJXVW   WR SUHUHTXLVLWH QXPHURVLW\ WKH GLVWULFW FRXUW IRXQG LW ZDV DQVZHUWKHFKDUJHVRImFRQWHPSWRIFRXUWQRQSD\PHQWRI mKLJKO\ LPSUREDEOHl WKDW WKH $ONLUH FRXOG PDNH VXFK D FRVWVl7KHERQGDOVRQRWHGWKDW$ONLUHPXVWSD\WKHFRXUW VKRZLQJ:KLOH$ONLUHSRVWXODWHVWKDWWKHUHDUHKXQGUHGVRI FRVWVLQWKHDPRXQWRIE\WKHQH[WFRXUWGDWH SRWHQWLDO SODLQWLIIV GHIHQGDQWVj VHDUFK RI MDLO UHFRUGV SURGXFHG RQO\ QLQH SRWHQWLDO FODVV PHPEHUV ZKR ZHUH $ONLUHVHQWDOHWWHUGDWHG$XJXVW ZKLFKH[SODLQHG LQFDUFHUDWHGGXHWRIDLOXUHWRSD\DFLYLOGHEWRUFRXUWFRVWV WKDWKHORVWKLVMREDVDUHVXOWRIKLVODVWVWD\LQMDLO+HDOVR 7KH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ E\ EHOLHYLQJ VWDWHGKHKDGMXVWVWDUWHGDQHZMRERQ$XJXVWWK+HVDLG GHIHQGDQWVjDVVHUWHGQXPEHURIFODVVPHPEHUVRYHU$ONLUHjV WKDW VLQFH KH FDQQRW SD\ WKH ILQHV ZLWKRXW D MRE LW ZRXOG VSHFXODWLYHRQH PDNHQRVHQVHWRDUUHVWKLPDQGFDXVHKLPWRORVHWKHQHZ MRE  $ONLUH SURSRVHG D SD\PHQW VFKHGXOH EDVHG RQ KLV 7KH VHFRQG SUHUHTXLVLWH RI 5XOH  D  UHTXLUHV FRPPRQ DQWLFLSDWHGHDUQLQJVIURPWKHQHZMRE TXHVWLRQV RI ODZ DQG IDFW DPRQJ WKH FODVV DQG WKH WKLUG SUHUHTXLVLWHORRNVWRWKHW\SLFDOLW\RIWKHFODLPVRUGHIHQVHV $ONLUH DJDLQ IDLOHG WR DSSHDU DW WKH $XJXVW    RIWKHUHSUHVHQWDWLYHSDUW\7KHGLVWULFWFRXUWIRXQGWKDWWKH KHDULQJ  sXGJH ,UYLQJ DJDLQ KHOG $ONLUH LQ FRQWHPSW DQG SRWHQWLDO FODVV PHPEHUV DUH WRR GLYHUVH WR ZDUUDQW FODVV LVVXHGDWKLUGEHQFKZDUUDQWIRUmIDLOXUHWRREH\DSUHYLRXV WUHDWPHQWWKDWWKHmYDU\LQJUHDVRQVIRUWKHDUUHVWVYDU\LQJ RUGHURIWKLVFRXUWl+HZDVDUUHVWHGRQ2FWREHU RQ OHQJWKV RI VWD\ LQ MDLO YDU\LQJ ILQDQFLDO VLWXDWLRQV YDU\ WKHWKLUGZDUUDQW$WDKHDULQJRQWKHVDPHGD\KHZDVIRXQG UHDVRQVIRUFRQWHPSWDGMXGLFDWLRQVZRXOGLPSDFWRQWKH JXLOW\ RI FRQWHPSW DQG RUGHUHG WR VHUYH WKLUW\ GD\V LQ WKH DPRXQWRIGDPDJHVDQ\LQGLYLGXDOFODVVPHPEHUPLJKWEH +ROPHV &RXQW\ sDLO  7KHUH ZDV QR LQTXLU\ DW WKH KHDULQJ HQWLWOHGWRl7KHGLVWULFWFRXUWH[SUHVVO\IRXQGWKDW$ONLUHjV UHJDUGLQJKLVDELOLW\WRSD\$OVRQRFUHGLWZDVJLYHQWRZDUG SURSRVHGFODVVODFNVWKHmFRPPRQTXHVWLRQVRIIDFWlUHTXLUHG WKHPRQH\RZHGGXULQJWKLVSHULRGRILQFDUFHUDWLRQ XQGHUWKHVHFRQGSURQJDQGWKHmW\SLFDOLW\lUHTXLUHGXQGHUWKH WKLUGSURQJRI5XOH D  2Q 2FWREHU    ZKLOH $ONLUH ZDV VWLOO VHUYLQJ WKH WKLUW\ GD\ VHQWHQFH D WKLUG VKRZ FDXVH OHWWHU ZDV LVVXHG $ONLUHDUJXHVWKDWWKHGLVWULFW FRXUWDEXVHGLWVGLVFUHWLRQ GHPDQGLQJ SD\PHQW RI  RU DQ DSSHDUDQFH RQ EHFDXVHRQO\RQHFRPPRQTXHVWLRQRIODZRUIDFWLVUHTXLUHG 1RYHPEHU     7KH KHDULQJ ZDV FRQWLQXHG WR +HSRLQWVWRDFRPPRQTXHVWLRQRIIDFWmWKHH[LVWHQFHDQG 'HFHPEHU $IWHUWKHSUHVHQWDFWLRQZDVILOHGWKH ILQDOVKRZFDXVHKHDULQJGDWHZDVSRVWSRQHGLQGHILQLWHO\  7KH IRXUWK HOHPHQW RI 5XOH  D  ZKHWKHU WKH UHSUHVHQWDWLYH SDUWLHV  ZLOO IDLUO\ DQG SURWHFW WKH LQWHUHVWV RI WKH FODVV LV QRW DGGUHVVHG E\ WKH $JDLQ WKHUH LV QR H[SODQDWLRQ LQ WKH UHFRUG IRU WKH GLVFUHSDQF\ GLVWULFW FRXUW RU LQ WKH EULHIV 7KHUHIRUH ZH ZLOO DOVR QRW DGGUHVV LW EHWZHHQ WKLV DPRXQW DQG WKH   DPRXQW  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

,,,352&('85$/+,6725< 6KHULII =LPPHUO\ DQG +ROPHV &RXQW\ PHUHO\ H[HFXWH WKH RUGHUVLVVXHGE\sXGJH,UYLQJZKHQLQFDUFHUDWLQJLQGLYLGXDOV 3ODLQWLII $ONLUH ILOHG D FRPSODLQW DQG D PRWLRQ IRU FODVV 7KH GHIHQGDQWV DUH QRW H[FHHGLQJ WKH †   LPPXQLW\ FHUWLILFDWLRQRQ'HFHPEHU LQWKH86'LVWULFW&RXUW DIIRUGHGWRWKHP IRUWKH1RUWKHUQ'LVWULFWRI2KLRDOOHJLQJYLRODWLRQVRIKLV FRQVWLWXWLRQDOULJKWVIRUWKHH[WHQGHGZDUUDQWOHVVGHWHQWLRQ ( :KHWKHU WKH GLVWULFW FRXUW DEXVHG LWV GLVFUHWLRQ LQ DQG GHEWUHODWHG LPSULVRQPHQW  $ONLUH ILOHG DQ DPHQGHG UHIXVLQJWRFHUWLI\DFODVV FRPSODLQW RQ sDQXDU\     $ONLUH ILOHG VXPPDU\ MXGJPHQWPRWLRQVDJDLQVWDOOWKHGHIHQGDQWVRQ'HFHPEHU $ONLUHDUJXHVWKDWWKHGLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQE\  'HIHQGDQWV+ROPHV&RXQW\+ROPHV&RXQW\&RXUW GHQ\LQJ KLV PRWLRQ IRU FODVV FHUWLILFDWLRQ RQ GDPDJHV DQG DQG6KHULII=LPPHUO\ILOHGVXPPDU\MXGJPHQWPRWLRQVRQ UHVWLWXWLRQ  7KHUH DUH IRXU SUHUHTXLVLWHV WR D FODVV DFWLRQ 'HFHPEHU sXGJH,UYLQJILOHGKHUVXPPDU\MXGJPHQW IRXQGLQ)(' 5 &,9 3 D  PRWLRQRQ'HFHPEHU  2QHRUPRUHPHPEHUVRIDFODVVPD\VXHRUEHVXHGDV 7KHSDUWLHVDJUHHGWRDVWLSXODWLRQRIVHWWOHPHQWEXWLWGLG UHSUHVHQWDWLYHSDUWLHVRQEHKDOIRIDOORQO\LI   WKHFODVV QRW UHVROYH DOO WKH LVVXHV EHWZHHQ WKH SDUWLHV  LW RQO\ LV VR QXPHURXV WKDW MRLQGHU RI DOO PHPEHUV LV SXUSRUWHGWRVHWWOHWKHGHFODUDWRU\DQGLQMXQFWLYHSRUWLRQVRI LPSUDFWLFDEOH   WKHUH DUH TXHVWLRQV RI ODZ RU IDFW WKH VXLW  7KXV LQ D s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oWKRXJKWKDWTXHVWLRQPXVWEHDmFRPPRQLVVXHWKH 7KHGLVWULFWFRXUWGHQLHGWKHPRWLRQIRUFODVVFHUWLILFDWLRQ UHVROXWLRQ RI ZKLFK ZLOO DGYDQFH WKH OLWLJDWLRQl  6SUDJXH RQ 6HSWHPEHU    2Q 1RYHPEHU   WKH FRXUW )GDW 6HHDOVR$PFKHP3URGV,QFY:LQGVRU GHQLHG $ONLUHjV VXPPDU\ MXGJPHQW PRWLRQV DQG JUDQWHG 86    8OWLPDWHO\WKHFODVVPD\RQO\EH GHIHQGDQWVj VXPPDU\ MXGJPHQW PRWLRQV  $ONLUH WLPHO\ FHUWLILHG LI mDIWHU ULJRURXV DQDO\VLVl WKH GLVWULFW FRXUW LV DSSHDOHGWKHGLVWULFWFRXUWjVMXGJPHQWRQ'HFHPEHU VDWLVILHGWKDWWKHVHSUHUHTXLVLWHVKDYHEHHQPHW*HQ7HO&R Y)DOFRQ86   7KHEXUGHQLVRQWKH SODLQWLIImWRHVWDEOLVKKLVULJKWl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

$ONLUHjVDSSHOODWHEULHIGRFXPHQWVWKHSROLFLHVRIWKH ,967$1'$5'2)5(9,(: &OHUNjV2IILFHLQFOXGLQJUHTXLULQJSD\PHQWRIILQHVDQGFRVWV ZLWKLQWZR\HDUVPDNLQJQRLQTXLU\LQWRILQDQFLDODELOLW\WR :HUHYLHZWKHGLVWULFWFRXUWjVRUGHUJUDQWLQJGHIHQGDQWVj SD\DQGQHYHUKDYLQJIRXQGDQLQDELOLW\WRSD\LQWKHSDVWVL[ DQGGHQ\LQJ$ONLUHjVPRWLRQVIRUVXPPDU\MXGJPHQWGHQRYR \HDUV+HDOVRSRLQWVWRWKHSUDFWLFHVDQGFXVWRPVRI6KHULII XVLQJWKHVDPHVXPPDU\MXGJPHQWWHVWDVWKHGLVWULFWFRXUW =LPPHUO\ ZKR mQHYHUl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sXGJH ,UYLQJ DQG WKH &RXQW\&RXUWLQHQIRUFLQJEHQFKZDUUDQWVDQGLQFDUFHUDWLQJ :H UHYLHZ D FODVV FHUWLILFDWLRQ GHFLVLRQ IRU DEXVH RI SULVRQHUVIRUWKHWHUPRIWKHLUFULPLQDOFRQWHPSWVHQWHQFH GLVFUHWLRQ6SUDJXHY*HQ0RWRUV&RUS)G  7KH &OHUNjV 2IILFH PD\ EH FRPSOLFLW LQ EOXUULQJ WKH OLQH WK&LU   HQEDQF $QDEXVHRIGLVFUHWLRQLVSUHVHQW EHWZHHQ IDLOXUH WR DSSHDU DQG IDLOXUH WR SD\ EXW LW LV ZKHQ WKH GLVWULFW FRXUW mDSSOLHV WKH ZURQJ OHJDO VWDQGDUG XOWLPDWHO\ sXGJH ,UYLQJ ZKR GHFLGHV WR LVVXH FULPLQDO PLVDSSOLHV WKH FRUUHFW OHJDO VWDQGDUG RU UHOLHV RQ FOHDUO\ FRQWHPSWVDQFWLRQV HUURQHRXVILQGLQJVRIIDFWl6FKDFKQHUY%OXH&URVV %OXH 6KLHOG)G   WK&LU   6KHULII=LPPHUO\+ROPHV&RXQW\DQGWKH&OHUNjV2IILFH DOOGHULYHWKHLUDXWKRULW\DQGRUGHUVIURPWKHDFWLRQVRIsXGJH 9',6&866,21 ,UYLQJ  sXGJH ,UYLQJ HQMR\V DEVROXWH MXGLFLDO LPPXQLW\ 3LHUVRQ Y 5D\  86      DQG 6KHULII 7KHUHDUHILYHLVVXHVIRURXUFRQVLGHUDWLRQDVIUDPHGE\ =LPPHUO\ +ROPHV &RXQW\ DQG WKH &OHUNjV 2IILFH KDYH $ONLUH  7KH ILUVW IRXU DVN ZKHWKHU WKH WULDO FRXUW HUUHG LQ TXDVLMXGLFLDOLPPXQLW\DQGTXDOLILHGLPPXQLW\EHFDXVHWKH\ IDLOLQJWRILQG+ROPHV&RXQW\DQG6KHULII=LPPHUO\LQKLV DUHSHUIRUPLQJTXDVLMXGLFLDOGXWLHVXQGHUWKHGLUHFWLRQRID RIILFLDOFDSDFLW\OLDEOH   XQGHUWKH)RXUWK$PHQGPHQWIRU MXGLFLDORIILFHU%XVK)GDW +XQWHU86DW   7KHVH GXWLHV DUH LQWLPDWHO\ mLQWHUWZLQHG ZLWK WKH MXGLFLDO SURFHVVl WR WKH GHJUHH WKDW mWKHVH SHUVRQV DUH  FRQVLGHUHGDQDUPRIWKHMXGLFLDORIILFHUZKRLVLPPXQHl $ONLUH LV DSSHDOLQJ ERWK WKH JUDQW RI GHIHQGDQWVj VXPPDU\ MXGJPHQW

%XVK)GDW FLWLQJ6FUXJJVY0RHOOHULQJ)G PRWLRQV DQG WKH GHQLDO RI KLV VXPPDU\ MXGJPHQW 1RUPDOO\ WKH GHQLDO RI D VXPPDU\ MXGJPHQW PRWLRQ LQGLFDWHV WKDW WKHUH LV D JHQXLQH LVVXH RI  WK&LU   PDWHULDO IDFW IRU WULDO $V VXFK GHQLDOV DUH FRQVLGHUHG LQWHUORFXWRU\ DSSHDOV IURP ZKLFK QR DSSHDO LV DYDLODEOH XQWLO WKH HQWU\ RI D ILQDO

$FFRUGLQJO\WKHGLVWULFWFRXUWjVGHQLDORI$ONLUHjVVXPPDU\ MXGJPHQW DIWHU D WULDO RQ WKH PHULWV 8QLWHG 6WDWHV Y )ORULDQ  86

MXGJPHQWPRWLRQDQGJUDQWRIGHIHQGDQWVjVXPPDU\MXGJPHQW     m+RZHYHU ZKHQ WKH DSSHDO IURP D GHQLDO RI VXPPDU\

PRWLRQRQWKLVLVVXHVXUYLYHGHQRYRUHYLHZ7KH&OHUNjV MXGJPHQW LV SUHVHQWHG WRJHWKHU ZLWK DQ DSSHDO IURP D JUDQW RI VXPPDU\

2IILFHPHUHO\UHIHUVFDVHVRIQRQSD\PHQW WR sXGJH,UYLQJ MXGJPHQW ZH KDYH MXULVGLFWLRQ WR

7KRPDV Y 86 UHYLHZ WKH DSSURSULDWHQHVV RI WKH

ZKR PDNHV KHU RZQ GHWHUPLQDWLRQ DERXW KRZ WR SURFHHG GLVWULFW FRXUW V GHQLDOl  )G   WK &LU

  7KH GHQLDO RI VXPPDU\ MXGJPHQW EDVHG SXUHO\ RQ OHJDO JURXQGV

LV UHYLHZHG GH QRYR ,G  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

WKHSROLFLHVDQGFXVWRPVWKDWUHVXOWHGLQ$ONLUHjVZDUUDQWOHVV RIILFHLVWKHGHIHQGDQWUHVSRQVLEOHIRUDFFRXQWLQJFUHGLWLQJ GHWHQWLRQ IRU QHDUO\ VHYHQW\WZR KRXUV    XQGHU WKH DQGFROOHFWLQJWKHILQHVDQGFRVWV7KH&OHUNjVRIILFHRSHUDWHV 7KLUWHHQWK $PHQGPHQW IRU WKH SROLFLHV DQG FXVWRPV WKDW LQ FORVH FRQMXQFWLRQ ZLWK sXGJH ,UYLQJ DQG DV VXFK LV UHVXOWHGLQ$ONLUHEHLQJDUUHVWHGWKUHHWLPHVDQGMDLOHGIRU FORDNHGLQKHUDEVROXWHMXGLFLDOLPPXQLW\LWVRZQ(OHYHQWK GD\VIRUIDLOLQJWRSD\FLYLOGHEWVRZHGWKHFRXQW\   XQGHU $PHQGPHQWLPPXQLW\DQGLWVRZQTXDVLMXGLFLDOLPPXQLW\ GXHSURFHVVDQGHTXDOSURWHFWLRQIRUWKHSROLF\DQGFXVWRPRI 0LUHOHV86DW 0XPIRUG)GDW:KLOH QRWDOORZLQJFUHGLWWRZDUGILQHVDQGFRVWVIRUWLPHVHUYHGVR 6KHULII=LPPHUO\DQG+ROPHV&RXQW\DUHQRWSURWHFWHGIURP WKDW $ONLUH ZDV LQFDUFHUDWHG  GD\V LQ H[FHVV RI WKH † VXLWVE\WKH(OHYHQWK$PHQGPHQWWKH\SOD\HGQRUROH PD[LPXPRWKHUZLVHSHUPLWWHGXQGHUVWDWHODZ DQG  XQGHU LQWKHDFFRXQWLQJDQGFUHGLWLQJRI$ONLUHjVGHEWLQUHODWLRQWR GXHSURFHVVDQGHTXDOSURWHFWLRQIRUWKHSROLFLHVDQGFXVWRPV KLV WLPH VHUYHG  1RWDEO\ ZKHQ sXGJH ,UYLQJj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jV)RXUWK$PHQGPHQWULJKWVQRWWR 86DW EHKHOGIRUVHYHQW\WZRKRXUVRQDZDUUDQWOHVVDUUHVW $FFRUGLQJO\WKHGLVWULFWFRXUWjVGHQLDORI$ONLUHjVVXPPDU\ $ONLUHDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGDVDPDWWHURIODZ MXGJPHQWPRWLRQDQGJUDQWRIGHIHQGDQWjVVXPPDU\MXGJPHQW E\QRWJUDQWLQJKLVVXPPDU\MXGJPHQWPRWLRQWKDW+ROPHV PRWLRQDVWR+ROPHV&RXQW\DQG6KHULII=LPPHUO\VXUYLYHGH &RXQW\DQG6KHULII=LPPHUO\ZHUHOLDEOHXQGHU† IRU QRYR UHYLHZ  ,I $ONLUH ZHUH LQFDUFHUDWHG IRU FULPLQDO YLRODWLQJKLV)RXUWK$PHQGPHQWULJKWDJDLQVWEHLQJGHWDLQHG FRQWHPSWKHLVQRWHQWLWOHGWRPRQHWDU\FUHGLWIRUKLVWLPH ZLWKRXWDSURPSWSUREDEOHFDXVHGHWHUPLQDWLRQ6HFWLRQ  VHUYHG  ,I KH ZHUH LQFDUFHUDWHG IRU QRQSD\PHQW RI ILQHV SURYLGHVWKDW QHLWKHU6KHULII=LPPHUO\QRU+ROPHV&RXQW\DUHOLDEOHXQGHU †  (YHU\SHUVRQZKRXQGHUFRORURIDQ\VWDWXWHRUGLQDQFH UHJXODWLRQFXVWRPRUXVDJHVXEMHFWVRUFDXVHVWREH ' :KHWKHU WKH GLVWULFW FRXUW HUUHG LQ ILQGLQJ QR VXEMHFWHG DQ\ FLWL]HQ RI WKH 8QLWHG 6WDWHV    WR WKH YLRODWLRQRI$ONLUHjV)RXUWHHQWK$PHQGPHQWULJKWQRW GHSULYDWLRQRIDQ\ULJKWVVHFXUHGE\WKH&RQVWLWXWLRQ WRORVHKLVOLEHUW\GXHWRLQGLJHQF\ DQGODZVVKDOOEHOLDEOHWRWKHSDUW\LQMXUHGLQDQDFWLRQ DWODZ>RU@VXLWLQHTXLW\ $ONLUHDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGDVDPDWWHURIODZ E\QRWJUDQWLQJVXPPDU\MXGJPHQWDJDLQVW+ROPHV&RXQW\  86& †    7R VWDWH D †   FODLP $ONLUH PXVW DQG6KHULII=LPPHUO\IRUYLRODWLQJ$ONLUHjVULJKWQRWWRVXIIHU HVWDEOLVK D  GHSULYDWLRQ RI D ULJKW VHFXUHG XQGHU WKH LQFDUFHUDWLRQGXHWRLQGLJHQF\7KLVLVEDVLFDOO\DUHVWDWHPHQW &RQVWLWXWLRQ RU IHGHUDO ODZ  DQG E  WKDW GHSULYDWLRQ ZDV RIWKHDUJXPHQWLQ6HFWLRQ%VXSUD$VGLVFXVVHGLQ6HFWLRQ FDXVHGE\DSHUVRQDFWLQJXQGHUFRORURIVWDWHODZ%URFNY % ERWK WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ DQG 2KLR VWDWXWH 0F:KHUWHU )G WK&LU   SURKLELWDORVVRIOLEHUW\IRUWKRVHZKRDUHXQDEOHWRSD\WKHLU FLYLOGHEWV%HDUGHQ86DW .DUU)6XSSDW  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO

WRZDUGKLVILQHVDQGFRXUWFRVWV2QFHDJDLQWRVWDWHD†  $VIRUWKHILUVWSURQJRIWKLVWHVWVLQFH$ONLUHKDVDOOHJHG FODLP$ONLUHPXVWHVWDEOLVK D GHSULYDWLRQRIDULJKWVHFXUHG KHZDVKHOGLQYLRODWLRQRIWKH)RXUWK$PHQGPHQWZHPXVW XQGHUWKH&RQVWLWXWLRQRUIHGHUDOODZ DQG E WKDWGHSULYDWLRQ DVNZKDWWKH)RXUWK$PHQGPHQWUHTXLUHV,WUHTXLUHVDmIDLU ZDV FDXVHG E\ D SHUVRQ DFWLQJ XQGHU FRORU RI VWDWH ODZ DQGUHOLDEOHGHWHUPLQDWLRQRISUREDEOHFDXVHlZKLFKPXVWEH %URFN )GDW PDGHSURPSWO\DIWHUDZDUUDQWOHVVDUUHVW*HUVWHLQY3XJK  86       $ MXGLFLDO GHWHUPLQDWLRQ RI 6HFWLRQ  ' RIWKH2KLR5HYLVHG&RGHVWDWHV  SUREDEOHFDXVHZLWKLQIRUW\HLJKWKRXUVRIDUUHVWmZLOODVD JHQHUDOPDWWHUFRPSO\ZLWKWKHSURPSWQHVVUHTXLUHPHQWRI 1RSHUVRQVKDOOEHRUGHUHGWREHFRPPLWWHGWRDMDLORU *HUVWHLQl&RXQW\RI5LYHUVLGHY0F/DXJKOLQ86 ZRUNKRXVHRURWKHUZLVHEHKHOGLQFXVWRG\LQVDWLVIDFWLRQ    ,IWKHSUREDEOHFDXVHKHDULQJLVQRWKHOGZLWKLQ RIDILQHLPSRVHGDVWKHZKROHRUDSDUWRIDVHQWHQFH IRUW\HLJKW KRXUV WKH EXUGHQ VKLIWV WR WKH JRYHUQPHQW mWR H[FHSW DV SURYLGHG LQ WKLV VHFWLRQ  $Q\ SHUVRQ GHPRQVWUDWHWKHH[LVWHQFHRIDERQDILGHHPHUJHQF\RURWKHU LPSULVRQHGSXUVXDQWWRWKLVVHFWLRQVKDOOUHFHLYHFUHGLW H[WUDRUGLQDU\ FLUFXPVWDQFHl  ,G  7KH 6XSUHPH &RXUW XSRQ WKH ILQH DW WKH UDWH RI WKLUW\ GROODUV SHU GD\ RU VSHFLILFDOO\ PHQWLRQHG WKDW LQWHUYHQLQJ ZHHNHQGV GR QRW IUDFWLRQRIDGD\,IWKHXQSDLGILQHLVOHVVWKDQWKLUW\ FRXQWDVDQµH[WUDRUGLQDU\FLUFXPVWDQFHj,G2QWKHRWKHU GROODUVWKHSHUVRQVKDOOEHLPSULVRQHGRQHGD\ KDQGLIWKHGHIHQGDQWLVKHOGRQDYDOLGZDUUDQWKHmLVQRW FRQVWLWXWLRQDOO\HQWLWOHGWRDVHSDUDWHMXGLFLDOGHWHUPLQDWLRQ 2+,2 5(9 &2'( $11†  '  DPRXQWUDLVHGIURP WKDW WKHUH LV SUREDEOH FDXVH WR GHWDLQ KLP SHQGLQJ WULDOl WKLUW\WRILIW\GROODUVSHUGD\HIIHFWLYH6HSWHPEHUVHH %DNHUY0F&ROODQ86    2+,2 /$:6  $ONLUHDUJXHVKHZDVEHLQJKHOGRQWKHZDUUDQWOHVV':, $SSO\LQJWKLUW\GROODUVSHUGD\WRKLVILQH$ONLUHDUJXHVKH DUUHVW'HIHQGDQWVDUJXHKHZDVEHLQJKHOGRQWKHZDUUDQW ZDVKHOGVL[WHHQGD\VORQJHUWKDQKHVKRXOGKDYHEHHQGXULQJ IURPDQRWKHUMXULVGLFWLRQ,I$ONLUHLVFRUUHFWWKHQKLV)RXUWK KLVILUVWLQFDUFHUDWLRQ7KHQLQDGGLWLRQKHZDVDUUHVWHGWZR $PHQGPHQWULJKWVZHUHYLRODWHGVLQFHKHZDVHQWLWOHGWRD PRUHWLPHVDQGLQFDUFHUDWHGDQRWKHUWKLUW\GD\V7KH2KLR SUREDEOHFDXVHKHDULQJZLWKLQIRUW\HLJKWKRXUV+RZHYHULI 6XSUHPH &RXUW KDV KHOG WKDW DV DSSOLHG WR DQ LQGLJHQW GHIHQGDQWVDUHFRUUHFWWKHQKROGLQJ$ONLUHQHDUO\VHYHQW\WZR LPSULVRQPHQWIRUQRQSD\PHQWRIDILQHFUHGLWLQJRQO\WKUHH KRXUVZKLOHTXHVWLRQDEOHGRHVQRWDXWRPDWLFDOO\YLRODWHKLV GROODUVSHUGD\WRZDUGWKHILQHLVXQFRQVWLWXWLRQDO6WUDWWPDQ )RXUWK$PHQGPHQWULJKWV Y6WXGW1(G    $ONLUHDUJXHVWKDWm>D@ IRUWLRUL +ROPHV &RXQW\jV FXVWRP RI QR FUHGLW LV DV (YHQDIWHUFDUHIXOUHYLHZRIWKHUHFRUGLWLVXQFOHDUDVWR IXQGDPHQWDOO\XQIDLUDQGGLVFULPLQDWRU\lDVWKUHHGROODUVSHU ZKLFK SDUW\ LV FRUUHFW  $ONLUH VWDWHV LQ KLV EULHI WKDW WKH GD\  'HIHQGDQWV UHSO\ WKDW $ONLUH ZDV MDLOHG IRU FULPLQDO +ROPHV&RXQW\UHFRUGVGHPRQVWUDWHWKDWKHZDVKHOGRQWKH FRQWHPSWUDWKHUWKDQIDLOXUHWRSD\WKHILQH$VQRWHGDERYH ':, DUUHVW  7KH GHIHQGDQWV FRXQWHU E\ FLWLQJ 6KHULII FULPLQDOFRQWHPSWLVDVHSDUDWHFULPHIURPSXQLVKPHQWIRUWKH =LPPHUO\jVDIILGDYLWZKHUHKHVWDWHVWKDWWKH6WDWH+LJKZD\ XQGHUO\LQJRIIHQVH%DJZHOO86DW 7KHGLVWULFWFRXUWjVGHQLDORI$ONLUHjVVXPPDU\MXGJPHQW  PRWLRQDQGJUDQWRIGHIHQGDQWVjVXPPDU\MXGJPHQWPRWLRQ ,Q VXSSRUW $SSHOODQW FLWHV WKUHH GRFXPHQWV IURP DQ HYLGHQWLDU\

VXUYLYH GH QRYR UHYLHZ  (YHQ DVVXPLQJ WKDW $ONLUH ZDV DSSHQGL[ ZKLFK ZDV ILOHG LQ WKH GLVWULFW FRXUW ZLWK KLV PRWLRQ IRU FODVV

LPSULVRQHG IRU QRQSD\PHQW RI KLV GHEWV KH LV XQDEOH WR FHUWLILFDWLRQ :KLOH $SSHOODQW LQFOXGHG VRPH RI WKH HYLGHQWLDU\ DSSHQGL[ LQ WKH MRLQW DSSHQGL[ SURYLGHG WR WKLV &RXUW KH GLG QRW SURYLGH WKH UHDFKWKHUHVSRQVLEOHSDUWLHVLQD† VXLW7KH&OHUNjV VSHFLILF SDJHV KH FLWHV IRU WKLV SRLQW  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

3DWURO GLVFRYHUHG WKH RXWVWDQGLQJ ZDUUDQW IURP DQRWKHU VHQWHQFHGKLPWRWKLUW\GD\VIRUmIDLOLQJWRSD\DQ\ILQHRU MXULVGLFWLRQDWWKHWLPHRI$ONLUHjVDUUHVW+RZHYHU6KHULII FRVWVl =LPPHUO\jVVWDWHPHQWIDOOVVKRUWRIVWDWLQJWKDWWKHZDUUDQW UDWKHU WKDQ WKH ':, DUUHVW ZDV WKH UHDVRQ $ONLUH ZDV 'HVSLWH WKH FRQIOLFWLQJ UDWLRQDOHV JLYHQ IRU WKH RUGHUV GHWDLQHGVHYHQW\WZRKRXUV7KLVGLVSXWHEHWZHHQWKHSDUWLHV sXGJH ,UYLQJ LV VKLHOGHG IURP VXLW E\ DEVROXWH MXGLFLDO FRQVWLWXWHVDPDWHULDOIDFWXDOGLVSXWHZKLFKLVLQDSSURSULDWH LPPXQLW\sXGLFLDOLPPXQLW\LVLPPXQLW\IURPVXLWDQGLV IRUUHVROXWLRQRQVXPPDU\MXGJPHQW RQO\RYHUFRPHIRUQRQMXGLFLDODFWVRUZKHUHWKHMXGJHDFWHG LQFRPSOHWHDEVHQFHRIMXULVGLFWLRQ0LUHOHV86DW $SSO\LQJWKHVHFRQGSDUWRIWKHWHVWIRUD† FODLPZH   7KLV LPPXQLW\ H[WHQGV WR WKH &OHUNjV 2IILFH ZKLFK PXVW DOVR H[DPLQH ZKHWKHU WKH SRVVLEOH GHSULYDWLRQ RI SURFHVVHGKHURUGHUVDQGEHQFKZDUUDQWV)RVWHUY:DOVK $ONLUHjV)RXUWK$PHQGPHQWULJKWVZDVFDXVHGE\DSHUVRQ  )G   WK &LU    mD FOHUN ZKR LVVXHV D DFWLQJXQGHUFRORURIVWDWHODZ%URFN )GDW/RFDO ZDUUDQWDWWKHGLUHFWLRQRIDMXGJHLVSHUIRUPLQJDIXQFWLRQWR JRYHUQPHQWV FRXQWLHV DQG PXQLFLSDOLWLHV DUH FRQVLGHUHG ZKLFKDEVROXWHLPPXQLW\DWWDFKHVl 6KHULII=LPPHUO\ZKR XQGHU WKLV GHILQLWLRQ RI SHUVRQ DQG mPD\ EH VXHG IRU H[HFXWHG WKH MXGJHjV RUGHUV DQG +ROPHV &RXQW\ DV KLV FRQVWLWXWLRQDOGHSULYDWLRQVl0RQHOOY1HZ<RUN&LW\'HSjW HPSOR\HUDOVRHQMR\WKLVLPPXQLW\%XVK)GDW RI 6RFLDO 6HUYV  86         6WDWH mHQIRUFLQJ RU H[HFXWLQJ D FRXUW RUGHU LV LQWULQVLFDOO\ JRYHUQPHQWVDQGWKHLUmDUPVRIILFHUVDQGLQVWUXPHQWDOLWLHVl DVVRFLDWHG ZLWK D MXGLFLDO SURFHHGLQJl   7KXV $ONLUHjV KRZHYHUDUHLPPXQHIURPVXLWVIRUPRQH\GDPDJHVXQGHU †   VXLW LV XQDEOH WR UHDFK +ROPHV &RXQW\ DQG 6KHULII WKH(OHYHQWK$PHQGPHQW0XPIRUGY%DVLQVNL)G =LPPHUO\IRUPRQHWDU\GDPDJHV  WK&LU   FLWLQJ0W+HDOWK\&LW\6FK'LVWY 'R\OH 86   ,Q2KLRDFRXQW\FRPPRQ $FFRUGLQJO\WKHGLVWULFWFRXUWjVGHQLDORI$ONLUHjVVXPPDU\ SOHDVFRXUWmLVQRWDVHJPHQWRIFRXQW\JRYHUQPHQWEXWDQ MXGJPHQWPRWLRQDQGJUDQWRIGHIHQGDQWVjVXPPDU\MXGJPHQW DUP RI WKH VWDWH IRU SXUSRVHV RI VHFWLRQ   OLDELOLW\ DQG PRWLRQ ZLWK UHJDUG WR WKH 7KLUWHHQWK $PHQGPHQW FODLP (OHYHQWK $PHQGPHQW LPPXQLW\ DQDO\VLVl  0XPIRUG  VXUYLYHGHQRYRUHYLHZ:KLOHWKHUHDSSHDUWREHSRVVLEOH )GDW  FRQVWLWXWLRQDO YLRODWLRQV WKH GLVWULFW FRXUW UHFRJQL]HG WKH SUREOHPDQGHQFRXUDJHGDVHWWOHPHQWDJUHHPHQWWRUHVROYH $V IRU WKRVH DFWRUV QRW LPPXQH XQGHU WKH (OHYHQWK WKHVHSUDFWLFHV7KHUHVXOWLQJVWLSXODWHGVHWWOHPHQWDSSHDUVWR $PHQGPHQW† FODLPVFDQQRWEHSUHPLVHGRQDWKHRU\ HQG WKH TXHVWLRQDEOH SUDFWLFHV DQG REYLDWHV WKH QHHG IRU RIUHVSRQGHDWVXSHULRU0RQHOO86DW ,QVWHDGWKH LQMXQFWLYHUHOLHI'DPDJHVDUHFOHDUO\EDUUHGGXHWRsXGJH SODLQWLIIPXVWmLGHQWLI\DPXQLFLSDOµSROLF\jRUµFXVWRPjWKDW ,UYLQJjVDEVROXWHMXGLFLDOLPPXQLW\DQGWKHLPPXQLW\H[WHQGV FDXVHGWKHSODLQWLIIjVLQMXU\lDQGWKHPXQLFLSDOLW\WKURXJK WRWKHRWKHUGHIHQGDQWVZKRZHUHH[HFXWLQJKHURUGHUV WKLVSROLF\PXVWKDYHEHHQWKHmµPRYLQJIRUFHjEHKLQGWKH LQMXU\DOOHJHGl%GRI&RXQW\&RPPjUVY%URZQ86 & :KHWKHU WKH GLVWULFW FRXUW HUUHG LQ ILQGLQJ QR     :KHUHDJRYHUQPHQWmFXVWRPKDVQRW YLRODWLRQRI$ONLUHjVGXHSURFHVVDQGHTXDOSURWHFWLRQ UHFHLYHG IRUPDO DSSURYDO WKURXJK WKH ERG\jV RIILFLDO ULJKWVZKHUHGHIHQGDQWVIDLOHGWRDOORZFUHGLWWRZDUG GHFLVLRQPDNLQJ FKDQQHOVl VXFK D FXVWRP PD\ VWLOO EH WKH ILQHVDQGFRVWVIRUWLPHVHUYHG VXEMHFWRID† VXLW0RQHOO86DW   $ONLUHDVVHUWVWKDWWKHGLVWULFWFRXUWHUUHGDVDPDWWHURIODZ $SSO\LQJ WKLV WHVW sXGJH ,UYLQJ DQG WKH +ROPHV &RXQW\ LQQRWJUDQWLQJVXPPDU\MXGJPHQWDJDLQVW+ROPHV&RXQW\ &RXUWDUHSURWHFWHGE\(OHYHQWK$PHQGPHQWLPPXQLW\VLQFH DQG6KHULII=LPPHUO\IRUYLRODWLRQRIKLVULJKWVWRGXHSURFHVV DQGHTXDOSURWHFWLRQE\QRWFUHGLWLQJKLVWLPHVHUYHGLQMDLO  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

LPSULVRQHGIRUFLYLOGHEW$VVWDWHGDERYHWRVWDWHD†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mµLPSRV>H@DILQHDVD $FFRUGLQJWR$ONLUHLQ DIWHUDQHZ+ROPHV&RXQW\ VHQWHQFHDQGWKHQDXWRPDWLFDOO\FRQYHU>W@LWLQWRDMDLOWHUP MDLO RSHQHG 6KHULII =LPPHUO\ HVWDEOLVKHG WKH SROLF\ RI VROHO\EHFDXVHWKHGHIHQGDQWLVLQGLJHQWDQGFDQQRWIRUWKZLWK GHWDLQLQJ SHUVRQV LQ WKH FRXQW\ MDLO XQWLO WKHLU LQLWLDO SD\WKHILQHLQIXOOjl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µSROLF\RUFXVWRPjWKDWZDV WKHILQHGHWHUPLQHG HQYLVLRQHGLQ%URZQ/LDELOLW\H[WHQGVWR+ROPHV&RXQW\ EHFDXVHDQ\SROLF\RIFRXQW\HPSOR\HH6KHULII=LPPHUO\RQ .DUUY%OD\)6XSS  1'2KLR  7KLV KROGLQJGHWDLQHHVXQWLOWULDOZDVDOVRDFRXQW\SROLF\DQGWKLV UXOH GRHV QRW DSSO\ WR ZLOOIXO UHIXVDO WR SD\ D ILQH RQO\ SROLF\ZDVWKHµPRYLQJIRUFHjEHKLQGWKHLQMXU\DOOHJHG,WLV LQDELOLW\ WR SD\ RU LQGLJHQF\  %HDUGHQ  86 DW  QRW QHFHVVDU\ WKDW +ROPHV &RXQW\ RIILFLDOO\ HQGRUVHG WKLV FLWLQJ:LOOLDPVY,OOLQRLV 86Q     SROLF\WKURXJKOHJLVODWLYHDFWLRQIRULWWRFDUU\LWVLPSULPDWXU &ULPLQDO FRQWHPSW WKRXJK LV D VHSDUDWH FULPH IURP WKH SXQLVKPHQWRQWKHXQGHUO\LQJRIIHQVH LWLVGHVLJQHGWREH ,QDGGLWLRQQHLWKHU6KHULII=LPPHUO\QRU+ROPHV&RXQW\ SXQLWLYH DQG mYLQGLFDWH WKH DXWKRULW\ RI WKH FRXUWl  ,QWjO FDQFODLPDEVROXWHTXDVLMXGLFLDORUTXDOLILHGLPPXQLW\IRU 8QLRQ 8QLWHG 0LQH :RUNHUV RI $P Y %DJZHOO  86 WKHLUSROLF\WKDWUHVXOWHGLQWKHGHWHQWLRQRISULVRQHUVEH\RQG     WKHIRUW\HLJKWKRXUWKUHVKROG$VIRUDEVROXWHLPPXQLW\WKH SURSRQHQW VHHNLQJ VXFK LPPXQLW\ EHDUV WKH EXUGHQ RI $SSO\LQJWKHODZWRWKHVHIDFWVILUVWWKHODFNRIDMXGLFLDO HVWDEOLVKLQJ WKH MXVWLILFDWLRQ IRU LW  $QWRLQH Y %\HUV GHWHUPLQDWLRQ RI $ONLUHjV DELOLW\ WR SD\ DSSHDUV WR EH D $QGHUVRQ ,QF  86     Q    m7KH YLRODWLRQRI2KLRODZ6HFRQGHYHQWKRXJKLWLVDSSURSULDWH SUHVXPSWLRQLVWKDWTXDOLILHGUDWKHUWKDQDEVROXWHLPPXQLW\LV WR LPSRVH D MDLO WHUP IRU FULPLQDO FRQWHPSW LW LV VXIILFLHQWWRSURWHFWJRYHUQPHQWRIILFLDOVLQWKHH[HUFLVHRI XQFRQVWLWXWLRQDO WR LPSRVH D MDLO WHUP ZKHQ DQ LQGLJHQW WKHLUGXWLHV:HKDYHEHHQTXLWHVSDULQJLQRXUUHFRJQLWLRQRI SHUVRQ LV XQDEOH WR SD\ D ILQH  sXGJH ,UYLQJjV RUGHUV JLYH DEVROXWHLPPXQLW\DQGKDYHUHIXVHGWRH[WHQGLWDQ\IXUWKHU FRQIOLFWLQJUDWLRQDOHVIRUKHUEHQFKZDUUDQWVDQGFRQWHPSW WKDQLWVMXVWLILFDWLRQZRXOGZDUUDQWl 2QHW\SHRIDEVROXWH RUGHUV)RUH[DPSOHWKHILUVWEHQFKZDUUDQWZDVLVVXHGIRU LPPXQLW\LVMXGLFLDOLPPXQLW\0LUHOHVY:DFR86 $ONLUHjVmIDLOXUHWRREH\DSUHYLRXVRUGHURIWKLVFRXUWlDQG      m$ ORQJ OLQH RI WKLV &RXUW V SUHFHGHQWV mIDLO>XUH@ WR DSSHDUl  +RZHYHU KHU ILUVW FRQWHPSW RUGHU DFNQRZOHGJHVWKDWJHQHUDOO\DMXGJHLVLPPXQHIURPDVXLW  $ONLUHY,UYLQJHWDO 1R 1R $ONLUHY,UYLQJHWDO 

IRUPRQH\GDPDJHVl  FROOHFWLQJFDVHV +RZHYHUQHLWKHU WKHIDFWVYLHZHGLQWKHOLJKWPRVWIDYRUDEOHWRWKHSODLQWLII sXGJH,UYLQJQRUWKH&OHUNjV2IILFHDSSHDUVWRKDYHSOD\HG VKRZ WKDW WKH GHIHQGDQWV YLRODWHG KLV FRQVWLWXWLRQDO ULJKWV DQ\UROHLQWKHGHFLVLRQWRGHWDLQSULVRQHUVEH\RQGIRUW\HLJKW 6DXFLHU Y .DW]  86       ,I D IDYRUDEOH KRXUV1RUZDV6KHULII=LPPHUO\DFWLQJXQGHUWKHRIILFLDO YLHZRIWKHIDFWVGRHVGHPRQVWUDWHDFRQVWLWXWLRQDOYLRODWLRQ RUGHUVRIsXGJH,UYLQJLQFDUU\LQJRXWWKHSROLF\ WKH QH[W VWHS LV WR DVN ZKHWKHU WKH ULJKW ZDV FOHDUO\ HVWDEOLVKHGDWWKHWLPHRIWKHGHIHQGDQWVj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jV)RXUWK$PHQGPHQWFODLP:H LQGHWHUPLQLQJZKHWKHUDQRIILFLDOLVHQWLWOHGWRDEVROXWH KDYHDOUHDG\GHWHUPLQHGWKDWLISODLQWLIIjVYHUVLRQRIWKHIDFWV LPPXQLW\8QGHUWKLVDSSURDFKDFRXUWORRNVWR WKH LVEHOLHYHGDFRQVWLWXWLRQDOYLRODWLRQKDVRFFXUUHG7KHUHLV QDWXUHRIWKHIXQFWLRQSHUIRUPHGQRWWKHLGHQWLW\RIWKH OLWWOH GRXEW PRUHRYHU WKDW WKH UHOHYDQW ODZ ZDV FOHDUO\ DFWRU ZKR SHUIRUPHG LW    )RU H[DPSOH D SURVHFXWRU HVWDEOLVKHG DW WKH WLPH RI GHIHQGDQWVj DFWLRQV  7KH ZKRXQGHUWDNHVDFWVLQ WKH SUHSDUDWLRQRULQLWLDWLRQRI FRQVWLWXWLRQDO YLRODWLRQ LQ WKH LQVWDQW FDVH IROORZV GLUHFWO\ MXGLFLDOSURFHHGLQJVLVHQWLWOHGWRDEVROXWHLPPXQLW\2Q IURP WKH 6XSUHPH &RXUWjV   GHFLVLRQ LQ 0F/DXJKOLQ WKH RWKHU KDQG ZKHQ D SURVHFXWRU SHUIRUPV 6LQFHWKHHYHQWVDWLVVXHLQWKHLQVWDQWFDVHRFFXUUHGPRUH DGPLQLVWUDWLYH DFWV XQUHODWHG WR MXGLFLDO SURFHHGLQJV WKDQ IRXU \HDUV DIWHU 0F/DXJKOLQ ZDV GHFLGHG LW VHHPV TXDOLILHGLPPXQLW\LVDOOWKDWLVDYDLODEOH DSSDUHQWWKDWWKHSODLQWLIIjVFRQVWLWXWLRQDOULJKWWRUHFHLYHD SUREDEOHFDXVHGHWHUPLQDWLRQZLWKLQIRUW\HLJKWKRXUVRIKLV ,G FLWDWLRQVRPLWWHG $JDLQ6KHULII=LPPHUO\jVSROLF\ZDV DUUHVWZDVFOHDUO\HVWDEOLVKHGDWWKHWLPHRIKLVDUUHVW QRW GLFWDWHG E\ sXGJH ,UYLQJ DQG LW FDQ EH GHVFULEHG DV DGPLQLVWUDWLYHLQQDWXUH7KHUHFRUGGHPRQVWUDWHVWKDWLWZDV 7KHUHIRUH WKH GLVWULFW FRXUWjV GLVPLVVDO RQ WKLV LVVXH LV KLVGHFLVLRQEHJLQQLQJLQ WRNHHSWKRVHDUUHVWHGLQMDLO UHYHUVHG%HFDXVHWKHUHDUHJHQXLQHLVVXHVRIPDWHULDOIDFW XQWLO WKHLU LQLWLDO DSSHDUDQFH  sXGJH ,UYLQJ RIWHQ GRHV QRW FRQFHUQLQJ$ONLUHjV)RXUWK$PHQGPHQWFODLPKRZHYHUWKH GLVFRYHUWKDWVRPHRQHKDVEHHQDUUHVWHGXQWLOWKH\DUULYHIRU GLVWULFW FRXUWjV GHQLDO RI $ONLUHjV PRWLRQ IRU VXPPDU\ DKHDULQJEHIRUHKHU MXGJPHQW LV DIILUPHG  7KLV FDVH LV UHPDQGHG IRU IXUWKHU SURFHHGLQJVWRGHWHUPLQHZKHWKHU$ONLUHZDVEHLQJKHOGRQ )LQDOO\ ZH FRQFOXGH WKDW QHLWKHU +ROPHV &RXQW\ QRU WKHDUUHVWZDUUDQWRUWKH':,DUUHVW 6KHULII=LPPHUO\HQMR\TXDOLILHGLPPXQLW\IURPWKLVFODLP $FFRUGLQJWRWKHGRFWULQHRITXDOLILHGLPPXQLW\mJRYHUQPHQW % :KHWKHU WKH GLVWULFW FRXUW HUUHG LQ ILQGLQJ QR RIILFLDOV SHUIRUPLQJ GLVFUHWLRQDU\ IXQFWLRQV JHQHUDOO\ DUH YLRODWLRQRI$ONLUHjV7KLUWHHQWK$PHQGPHQWULJKWQRW VKLHOGHG IURP OLDELOLW\ IRU FLYLO GDPDJHV LQVRIDU DV WKHLU WREHLPSULVRQHGIRUDFLYLOGHEW FRQGXFW GRHV QRW YLRODWH FOHDUO\ HVWDEOLVKHG VWDWXWRU\ RU FRQVWLWXWLRQDOULJKWVRIZKLFKDUHDVRQDEOHSHUVRQZRXOGKDYH $ONLUHDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGDVDPDWWHURIODZ NQRZQl+DUORZY)LW]JHUDOG86    LQQRWJUDQWLQJKLVVXPPDU\MXGJPHQWPRWLRQWKDW+ROPHV 4XDOLILHGLPPXQLW\LQYROYHVDWZRVWHSLQTXLU\)LUVWWKH &RXQW\DQG6KHULII=LPPHUO\ZHUHOLDEOHXQGHU† IRU FRXUWPXVWGHWHUPLQHZKHWKHUEDVHGXSRQWKHDSSOLFDEOHODZ YLRODWLQJ KLV 7KLUWHHQWK $PHQGPHQW ULJKW QRW WR EH