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

(/$,1( / &+$26HFUHWDU\RI ; /DERU8QLWHG6WDWHV  'HSDUWPHQWRI/DERU   1R 3ODLQWLII$SSHOOHH  !  Y   75$'(60(1 ,17(51$7,21$/  ,1&  'HIHQGDQW$SSHOODQW   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R  n6RORPRQ2OLYHUsU'LVWULFWsXGJH $UJXHG $SULO 'HFLGHGDQG)LOHG 1RYHPEHU %HIRUH 68+5+(,15,&+DQG*,/0$1&LUFXLWsXGJHV  +22''LVWULFWsXGJH

7KH +RQRUDEOH sRVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ

  &KDRY7UDGHVPHQ,QWjO 1R

BBBBBBBBBBBBBBBBB &2816(/ $5*8('   9LQFHQW 7 1RUZLOOR 75$'(60(1 ,17(51$7,21$/,1&6RORQ2KLRIRU$SSHOODQWsRDQ %UHQQHU81,7('67$7(6'(3$570(172)/$%25 2)),&( 2) 7+( 62/,&,725 :DVKLQJWRQ '& IRU $SSHOOHH21%5,() 9LQFHQW71RUZLOOR75$'(60(1 ,17(51$7,21$/,1&6RORQ2KLRIRU$SSHOODQWsRDQ %UHQQHU3DXO)ULHGHQ81,7('67$7(6'(3$570(17 2)/$%252)),&(2)7+(62/,&,725:DVKLQJWRQ '&IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 68+5+(,15,&+&LUFXLWsXGJH7UDGHVPHQ,QWHUQDWLRQDO ,QFDSSHDOVIURPWKHRUGHURIWKHGLVWULFWFRXUWGHQ\LQJLWV PRWLRQIRUVXPPDU\MXGJPHQWDQGJUDQWLQJWKH6HFUHWDU\RI /DERUjV PRWLRQ  7KH LVVXH LQ WKLV FDVH LV ZKHWKHU DQ HPSOR\HHjV DWWHQGDQFH DW D VDIHW\ WUDLQLQJ FRXUVH LV mLQYROXQWDU\lDQGZLWKLQWKHPHDQLQJRI &)5††   DQGWKHUHIRUHFRPSHQVDEOHXQGHUWKH)DLU/DERU 6WDQGDUGV$FW 86&††  m)/6$l ZKHUHWKH HPSOR\HUPDNHVWKHWUDLQLQJDSUHFRQGLWLRQRIHPSOR\PHQW EXW DOORZV WKH HPSOR\HH WR FRPSOHWH WKH FRXUVH ZLWKLQ D UHDVRQDEOH WLPH DIWHU FRPPHQFLQJ HPSOR\PHQW \HW DOVR HVWDEOLVKHVWKDWWKHHPSOR\HHZLOOEHWHUPLQDWHGLIKHRUVKH GRHVQRWFRPSOHWHWKHFRXUVHLQDWLPHO\PDQQHU7KHGLVWULFW FRXUW KHOG WKDW WKH HPSOR\HHVj DWWHQGDQFH LQ WKLV FDVH ZDV LQYROXQWDU\DQGWKDWWKHHPSOR\HUZDVWKHUHIRUHUHTXLUHGWR FRPSHQVDWHWKHPIRUWLPHVSHQWDWWHQGLQJWKHFRXUVH)RUWKH IROORZLQJUHDVRQVZH5(9(56( , 7KHIDFWVDUHEDVLFDOO\XQGLVSXWHG7UDGHVPHQLVDVNLOOHG ODERU OHDVLQJ FRPSDQ\ WKDW SURYLGHV D FRPSOHWH UDQJH RI  &KDRY7UDGHVPHQ,QWjO 1R 1R &KDRY7UDGHVPHQ,QWjO 

DJUHHWKDWWRUHDGWKHUHJXODWLRQDVFRYHULQJWKLVVLWXDWLRQLV ZRUNHUVWRFRQVWUXFWLRQFRQWUDFWRUVRQDQDVQHHGHGEDVLV,W LQFRQVLVWHQWZLWKWKHSXUSRVHRIWKH$FW OHDVHV LWV HPSOR\HHV ZKR DUH DOO VNLOOHG WUDGHVPHQ mILHOG HPSOR\HHVl  WR YDULRXV NLQGV RI FRQVWUXFWLRQ FRQWUDFWRUV ,,, 7UDGHVPHQGRHVQRWH[HUFLVHFRQWURORIRUVXSHUYLVLRQRYHU WKHZRUNRILWVOHDVHGHPSOR\HHV 7KHMXGJPHQWRIWKHGLVWULFWFRXUWLV5(9(56('DQGWKH PDWWHU 5(0$1'(' ZLWK LQVWUXFWLRQV WR HQWHU VXPPDU\ 7UDGHVPHQLPSRVHVDVSHFLILFVDIHW\WUDLQLQJSUHUHTXLVLWH MXGJPHQWLQIDYRURI7UDGHVPHQ DVSDUWRILWVKLULQJFULWHULDIRUILHOGHPSOR\HHV7KDWLVWR UHFHLYH D MRE RIIHU IURP 7UDGHVPHQ ILHOG HPSOR\HH FDQGLGDWHVPXVWKDYHFRPSOHWHGDQ2FFXSDWLRQDO6DIHW\DQG +HDOWK $GPLQLVWUDWLRQ m26+$l  KRXU JHQHUDO FRQVWUXFWLRQ VDIHW\ FRXUVH  7KH 26+$ FRXUVH LV DQ LQVWUXFWLRQDOSURJUDPRQJHQHUDOFRQVWUXFWLRQMREVLWHVDIHW\ 26+$GHWHUPLQHVWKHVSHFLILFFRQVWUXFWLRQVDIHW\VWDQGDUGV WREHSUHVHQWHGE\WKLVFRXUVHDQGLVVXHVWKHZULWWHQPDWHULDOV RQ WKH FRQVWUXFWLRQ WRSLFV WR ZKLFK WKH VHOHFWHG VDIHW\ VWDQGDUGVDSSO\7UDGHVPHQGRHVQRWKDYHDQ\LQSXWRQWKH VDIHW\VWDQGDUGVFRYHUHGE\WKHFRXUVHDQGGRHVQRWHGLWWKH FRXUVH WR DGGUHVV DQ\ SDUWLFXODU ZRUN HQYLURQPHQW RI WKH FRPSDQ\jVHPSOR\HHV )LHOG HPSOR\HH FDQGLGDWHV OHDUQ RI 7UDGHVPHQjV VDIHW\ SUHKLUH UHTXLUHPHQW GXULQJ WKHLU HPSOR\PHQW LQWHUYLHZ &DQGLGDWHVDUHDVNHGZKHWKHUWKH\KDYHKDGDQ\FRQVWUXFWLRQ VDIHW\WUDLQLQJDQGVSHFLILFDOO\ZKHWKHUWKHWUDLQLQJLQFOXGHG %$ +( $,5 /$%25 $% #$ % Q ,Q  FRPSOHWLRQRIDQ26+$FRXUVH:LWKSURRIRIDWWHQGDQFHRI  86     WKH 6XSUHPH &RXUW KHOG WKDW ZRUNHUV LQ D EDWWHU\ $ 7 ) 6WHLQHU Y 0LWFKHOO

SODQW PXVW EH SDLG IRU WLPH VSHQW FKDQJLQJ FORWKHV DQG VKRZHULQJ WKH 26+$ FRXUVH ILHOG HPSOR\HH FDQGLGDWHV DUH GHHPHG EHFDXVH GXULQJ WKHLU VKLIWV WKH ZRUNHUV ZHUH H[SRVHG WR GDQJHURXVO\ LPPHGLDWHO\ HOLJLEOH IRU KLUH LI RWKHUZLVH TXDOLILHG IRU FDXVWLF DQG WR[LF PDWHULDOV 7KH 6XSUHPH &RXUW KHOG WKDW DYDLODEOHZRUN QRWZLWKVWDQGLQJ 6HFWLRQ  RI WKH 3RUWDOWR3RUWDO $FW WKH WLPH VSHQW FKDQJLQJ FORWKHV DQG VKRZHULQJ ZDV FORVHO\ UHODWHG WR WKH HPSOR\HHjV &DQGLGDWHVZKRKDYHQRWDWWHQGHGWKH26+$FRXUVHDUH SULQFLSDO DFWLYLW\ DQG LQGLVSHQVDEOH WR LWV SHUIRUPDQFH ,Q LQIRUPHGWKDW7UDGHVPHQUHTXLUHVFRPSOHWLRQRIWKHFRXUVHDV   86     WKH 6XSUHPH &RXUW DSSOLHG 0LWFKHOO Y

WR KROG WKDW NQLIHPHQ LQ D PHDW SDFNLQJ SODQW ZKR ZHUH UHTXLUHG .LQJ 3DFNLQJ &R DFRQGLWLRQRIKLUH+RZHYHUDSSOLFDQWVDUHDOVRWROGWKDW WR NHHS WKHLU NQLYHV UD]RUVKDUS WR DFKLHYH SURSHU SHUIRUPDQFH RI WKHLU WKH\PD\EHQRQHWKHOHVVRIIHUHGLPPHGLDWHHPSOR\PHQWLI 6WHLQHU

EXWFKHULQJ GXWLHV ZHUH HQWLWOHG WR FRPSHQVDWLRQ IRU WKH WLPH VSHQW WKH\FRPPLWWRUHJLVWHULQJIRUWKH26+$FRXUVHZLWKLQVL[W\ VKDUSHQLQJ WKHLU NQLYHV 7KH &RXUW UHDVRQHG WKDW WKH NQLIHVKDUSHQLQJ GD\VDQGFRPSOHWLQJWKHFRXUVHZLWKLQDUHDVRQDEOHWLPH DFWLYLWLHV ZHUH DQ LQWHJUDO SDUW RI DQG LQGLVSHQVDEOH WR WKH SULQFLSDO DFWLYLWLHV IRU ZKLFK WKH NQLIHPHQ ZHUH HPSOR\HG DW  &DQGLGDWHV ZKR FKRRVH WKLV RSWLRQ PD\ DWWHQG HLWKHU DQ ,Q VKRUW DOWKRXJK WKH 3RUWDOWR3RUWDO $FW OLPLWV FRYHUDJH XQGHU WKH ,G

)/6$ LW GLG QRW HOLPLQDWH FRYHUDJH IRU DOO SUHOLPLQDU\ DQG SRVWOLPLQDU\ 26+$FRXUVHVSRQVRUHGE\DQLQVWUXFWLRQDOLQVWLWXWLRQRUWKH DFWLYLW\ EXW KDV OHIW LW XS WR WKH FRXUWV WR PDNH WKDW DVVHVVPHQW RQ D FDVH FODVV RIIHUHG E\ 7UDGHVPHQ DW LWV ILHOG RIILFHV  2QFH E\FDVH EDVLV FDQGLGDWHV ZKR DUH RWKHUZLVH TXDOLILHG IRU ZRUN DJUHH WR  &KDRY7UDGHVPHQ,QWjO 1R 1R &KDRY7UDGHVPHQ,QWjO 

VDWLVI\ WKH FRPSDQ\j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j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m'2/l EHJDQLQYHVWLJDWLQJ7UDGHVPHQ7KH'2/ 7KH 3RUWDOWR3RUWDO $FW ZDV GHVLJQHG LQ SDUW WR UHYHUVH WKH UHVXOW

GHWHUPLQHGWKDWWKHHPSOR\HHVjDWWHQGDQFHZDVLQYROXQWDU\ RI WKH 6XSUHPH &RXUWj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

ZRUNWLPHGXULQJDZHHN 7KH HPSOR\HHV DOVR VSHQW DQ DGGLWLRQDO IRXUWHHQ PLQXWHV EHIRUH WKHLU VKLIW SHUIRUPLQJ SUHSDUDWRU\ DFWLYLWLHV IRU SURGXFWLYH ZRUN DQG DQRWKHU IRXUWHHQ PLQXWHV DW WKH HQG RI HDFK VKLIW WR OHDYH WKHLU SRVWV DQG SXQFK 7KH '2/ EDVHG LWV GHFLVLRQ RQ UHIHUHQFHV WR WKH 26+$ RXW ,G DW  7KH 6XSUHPH &RXUW KHOG WKDW WKH WLPH VSHQW ZDONLQJ WR FRXUVHLQ7UDGHVPHQHPSOR\PHQWDQGPDUNHWLQJPDWHULDOV DQG IURP WKH HPSOR\HHjV DVVLJQHG ZRUN VWDWLRQ DQG WKH SUHSDUDWRU\ WLPH VKRZLQJ WKDW DWWHQGDQFH E\ 7UDGHVPHQ HPSOR\HHV DW WKH UHTXLUHG EHIRUH DQG DIWHU VFKHGXOHG SURGXFWLYH ZRUN ZDV FRPSHQVDEOH FRXUVHLVVROHO\IRUWKHEHQHILWRI7UDGHVPHQ)RUH[DPSOH XQGHU WKH )/6$ 7KH &RXUW UHDVRQHG WKDW WKH ZDONLQJ WLPH ZDV FRPSHQVDEOH EHFDXVH LW ZDV mXQGHU WKH FRPSOHWH FRQWURO RI WKH HPSOR\HUl WKH7UDGHVPHQjV)LHOG(PSOR\HH3ROLF\0DQXDOVWDWHV m$W DQG WKH HPSOR\HHV ZHUH mFRPSHOOHG WR GR VR E\ WKH QHFHVVLWLHV RI WKHLU 7UDGHVPHQZHWDNHVDIHW\VHULRXVO\7KDWLVZK\DOORIRXU HPSOR\HUjV EXVLQHVVl ,G DW   7KH &RXUW IXUWKHU IRXQG WKH WLPH VSHQW HPSOR\HHVDUHUHTXLUHGWRVXFFHVVIXOO\FRPSOHWHDKRXU HQJDJLQJ LQ SUHSDUDWRU\ DFWLYLWLHV VXFK DV SXWWLQJ RQ DSURQV DQG RYHUDOOV 26+$ FHUWLILHG FRQVWUXFWLRQ FODVVl  7KH PDQXDO IXUWKHU DQG SUHSDULQJ HTXLSPHQW WR EH FRPSHQVDEOH 7KH &RXUW UHDVRQHG WKDW SURYLGHVm>D@OOHPSOR\HHVDUHUHTXLUHGWRKDYHVXFFHVVIXOO\ VXFK DFWLYLWLHV ZHUH D QHFHVVDU\ SUHUHTXLVLWH WR SURGXFWLYH ZRUN DQG QRW

FRPSOHWHG D KRXU FRXUVH ZLWKLQ WKH ILUVW  GD\V RI IRU WKH HPSOR\HHVj SHUVRQDO FRQYHQLHQFH ,G DW   7KH OHJLVODWLYH KLVWRU\ RI WKH 3RUWDOWR3RUWDO $FW UHYHDOV WKDW RQH RI HPSOR\PHQW>DQG@PD\QRWEHVHQWRQQHZDVVLJQPHQWVXQWLO LWV PDMRU SXUSRVHV ZDV WR UHYHUVH WKH SRWHQWLDOO\ GHYDVWDWLQJ ILQDQFLDO WKH\FRPSOHWHWKHKRXUFRXUVHl LPSDFW RI $QGHUVRQ RQ EXVLQHVVHV LQ SDUWLFXODU DQG WKH WKUHDW WR WKH HFRQRP\ DV D ZKROH 6HH +55HS1R  3RUWDOWR3RUWDO $FW RI   0DUNHWLQJPDWHULDOVDOVRLQFOXGHUHIHUHQFHVWRWKHIDFWWKDW )HE    LQ   86 &RGH &RQJUHVVLRQDO 6HUYLFH S  VHH DOVR 7UDGHVPHQjV ILHOG HPSOR\HHV KDYH WDNHQ WKH 26+$ VDIHW\ $%$  7 +( $,5 /$%25 $% #$ % )   (OOHQ & .HDUQV 0/ 

FRXUVH  )RU LQVWDQFH D 7UDGHVPHQ EURFKXUH LQFOXGHV WKH   ,W LV HTXDOO\ FOHDU WKDW &RQJUHVV VWLOO LQWHQGHG DFWLYLWLHV VXFK DV IROORZLQJSDUDJUDSKODEHOHGm6DIHW\LVD3ULRULW\l FKDQJLQJ FORWKLQJ DQG SUHSDULQJ PDFKLQHU\ EH WUHDWHG DV FRPSHQVDEOH XQGHU WKH )/6$ LI WKH\ ZHUH DQ LQWHJUDO SDUW RI WKH SULQFLSDO DFWLYLW\ $00  &KDRY7UDGHVPHQ,QWjO 1R 1R &KDRY7UDGHVPHQ,QWjO 

WUDLQLQJ UHTXLUHPHQW XQWLO DIWHU EHLQJ KLUHG  %HFDXVH WKH 7UDGHVPHQ ,QWHUQDWLRQDO LV FRPPLWWHG WR VDIHW\  :H WUDLQLQJFODVVZDVDIXOO\GLVFORVHGSUHFRQGLWLRQWRSHUPDQHQW KDYHDFHUWLILHG26+$LQVWUXFWRURQVWDIIWRDVVLVW\RXLQ HPSOR\PHQWKRZHYHUIXOILOOPHQWRIWKHUHTXLUHPHQWVWULNHV NHHSLQJ ZLWKLQ 26+$ UHJXODWLRQV WR DYRLG FRVWO\ VLWH XV DV EHLQJ mYROXQWDU\l ZLWKLQ WKH PHDQLQJ RI   &)5 YLRODWLRQ ILQHV DQG PDLQWDLQ D VDIHU ZRUNLQJ † E  HQYLURQPHQW  :H DOVR RIIHU D ZLGH UDQJH RI VDIHW\ FODVVHVZKLFKDUHDYDLODEOHWRDOORXUFXVWRPHUVDQGRXU 7KH%DOORXFRXUWDOVRUHOLHGLQSDUWRQWZR6XSUHPH&RXUW HPSOR\HHV FDVHVOLWLJDWHGEHIRUHWKH3RUWDOWR3RUWDO$FWZDVHQDFWHG :DOOLQJY3RUWODQG7HUPLQDO&R86   DQG ,Q DGGLWLRQ D SKRQH PHVVDJH SOD\HG ZKHQHYHU D FDOOHU LV :DOOLQJY1DVKYLOOH&KDWWDQRRJD 6W/RXLV5DLOZD\ SODFHGRQKROGE\7UDGHVPHQHPSKDVL]HVVDIHW\DVDJRDORI 86      ,Q WKRVH FRPSDQLRQ FDVHV WKH 6XSUHPH 7UDGHVPHQ  ,W VWDWHV LQ SDUW m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l mVWXGHQWVlIURPFRYHUDJHXQGHUWKH)/6$WKH6XSUHPH&RXUW UHOLHGRQ 86&†ZKLFKSHUPLWVHPSOR\HUVWRSD\ 7KH'2/ILOHGWKLVDFWLRQXQGHU 86&†DOOHJLQJ OHVV WKDQ PLQLPXP ZDJHV WR OHDUQHUV DQG DSSUHQWLFHV WKDW7UDGHVPHQYLRODWHGWKH)/6$E\IDLOLQJWRFRPSHQVDWH SURYLGHG WKDW WKH $GPLQLVWUDWRU RI WKH :DJH DQG +RXU LWV HPSOR\HHV IRU WKHLU WLPH VSHQW LQ DWWHQGLQJ WKH 26+$ 'LYLVLRQRIWKH'HSDUWPHQWRI/DERUDSSURYHG7KH%DOORX FRXUVH  7KH '2/ VRXJKW DQ LQMXQFWLRQ WR SUHYHQW IXWXUH FRXUWDGGHGWKDWm>W@KHMXVWLILFDWLRQIRUWKLVSURYLVLRQZDVDQG YLRODWLRQVRIWKHRYHUWLPHSURYLVLRQVRIWKH)/6$ 86& LV WKDW DSSUHQWLFHV DUH HQWLWOHG WR EH FRPSHQVDWHG DW WKH †  D   DQG WR UHFRYHU XQSDLG RYHUWLPH FRPSHQVDWLRQ PLQLPXP ZDJH IRU WKH SURGXFWLYH ZRUN FRQWHQW RI WKHLU DOOHJHGO\GXHWR7UDGHVPHQjVHPSOR\HHV7KHSDUWLHVILOHG DFWLYLWLHVEXWQRWIRUWKHHGXFDWLRQDORUWUDLQLQJFRQWHQWZKLFK FURVVPRWLRQV IRU VXPPDU\ MXGJPHQW  7KH GLVWULFW FRXUW ZDVIRUWKHLURZQEHQHILWl%DOORX)GDW7KXVLQ GHQLHG 7UDGHVPHQjV PRWLRQ DQG JUDQWHG WKH '2/jV  7KH %DOORXWKHHPSOR\HUGLGQRWYLRODWHWKH)/6$DVDPHQGHG FRXUW HQMRLQHG 7UDGHVPHQ mIURP IDLOLQJ WR SD\ RYHUWLPH E\WKH3RUWDOWR3RUWDO$FWE\FRPSHQVDWLQJLWVDSSUHQWLFHV FRPSHQVDWLRQWRHPSOR\HHVZKRDWWHQGWKH26+$WUDLQLQJ LQWKHLUVWDWXVDVZRUNHUVEXWQRWFRPSHQVDWLQJWKHPLQWKHLU FRXUVHZKLOHHPSOR\HGE\WKHFRPSDQ\lDQGIXUWKHURUGHUHG VWDWXVDVVWXGHQWV,GDW 7UDGHVPHQ mWR FRPSXWH DQG SD\ DOO RYHUWLPH EDFN ZDJHV IURPWZR\HDUVSULRUWRWKHGDWHRIWKH&RPSODLQWXQWLOWKH  ,Q IXUWKHUVXSSRUWWKH%DOORXFRXUW UHOLHG RQ  &)5 SUHVHQWWRWKRVH7UDGHVPHQHPSOR\HHVZKRWRRNWKH26+$ †ZKLFKSURYLGHVWKDWHPSOR\HUVGRQRWKDYHWRSD\ FRXUVHZKLOHHPSOR\HGE\>7UDGHVPHQ@l DSSUHQWLFHVIRUVXSSOHPHQWDOWUDLQLQJSURJUDPVLIWKHWUDLQLQJ SURJUDPV VXEVWDQWLDOO\ FRPSO\ ZLWK WKH IXQGDPHQWDO  7UDGHVPHQDSSHDOV VWDQGDUGVRIWKH%XUHDXRI$SSUHQWLFHVKLSDQG7UDLQLQJDQG VXFK WLPH GRHV QRW LQYROYH SURGXFWLYH ZRUN RI WKH ,, DSSUHQWLFHjVUHJXODUGXWLHV,G6HH DOVR0HUULOOY([[RQ &RUS)6XSS 6'7H[   KROGLQJ :HUHYLHZWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQW GHQRYR+DUWVHOY.H\V)G   WK&LU    &KDRY7UDGHVPHQ,QWjO 1R 1R &KDRY7UDGHVPHQ,QWjO 

6XPPDU\ MXGJPHQW LV DSSURSULDWH mLI WKH SOHDGLQJV DQ\TXHVWLRQWKDWUDWKHUWKDQSURYLGLQJVXFKWUDLQLQJ GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQV RQ WRLWVHPSOR\HHVGXULQJWKHLUSHULRGRISUREDWLRQDU\ ILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZWKDWWKHUHLVQR HPSOR\PHQW 1RUWKHDVWHUQFRXOGVLPSO\PDNHWKH JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDWWKHPRYLQJSDUW\ VXFFHVVIXO DWWDLQPHQW RI DQ (07 FHUWLILFDWH D LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZl)HG5&LY3 SUHFRQGLWLRQRIHPSOR\PHQW7KXVZHZLOOQRWKROG  F 7KHLVVXHRIZKHWKHUDJLYHQVHWRIIDFWVFRQVWLWXWHV 1RUWKHDVWHUQ OLDEOH IRU RYHUWLPH SD\ IRU WLPH LWV ZRUNXQGHUWKH)/6$LVDTXHVWLRQRIODZ6HH%LUGZHOOY HPSOR\HHVVSHQGDVVWXGHQWVUDWKHUWKDQDVZRUNHUV &LW\RI*DGVGHQ$OD )G WK&LU   VLPSO\EHFDXVH1RUWKHDVWHUQKDVGHFLGHGWRKLUHLWV HPSOR\HHV RQ D SUREDWLRQDU\ EDVLV XQWLO WKH\ 7KH)/6$UHTXLUHVHPSOR\HUVWRSD\DWOHDVWDVSHFLILHG FRPSOHWHWKHWUDLQLQJUHTXLUHGWRKROGWKHMRERQD PLQLPXPZDJHIRUHDFKKRXUZRUNHGVHH 86&† SHUPDQHQWEDVLV DQGRYHUWLPHFRPSHQVDWLRQIRUHPSOR\PHQWLQH[FHVVRIIRUW\ KRXUVLQDZRUNZHHN 86&† D  $OWKRXJKWKH %LHQNRZVNL)GDW WHUP mZRUNl LV QRW GHILQHG LQ WKH VWDWXWH WKH $FW GHILQHV mHPSOR\lWRPHDQmWRVXIIHURUSHUPLWWRZRUNl,G† J $V LQ WKLV FDVH WKH%LHQNRZVNLSODLQWLIIV DUJXHG WKDW  VHHDOVR &)5†7KH6XSUHPH&RXUWKDVGHILQHG &)5 †  PDGH WKHLU WUDLQLQJ FRPSHQVDEOH  7KH ZRUN WR LQFOXGH DQ\ WLPH mFRQWUROOHG RU UHTXLUHG E\ WKH %LHQNRZVNL FRXUW UHMHFWHG WKH DUJXPHQW VWDWLQJ WKDW LW HPSOR\HU DQG SXUVXHG QHFHVVDULO\ DQG SULPDULO\ IRU WKH mGRXEW>HG@WKDWWKHUHJXODWLRQZDVPHDQWWRFRYHUWKHSHFXOLDU EHQHILWRIWKHHPSOR\HUDQGKLVEXVLQHVVl7HQQHVVHH&RDO VLWXDWLRQ SUHVHQWHG KHUHoWKDW LV ZKHUH WKH WUDLQLQJ LV QRW ,URQ 5&RY0XVFRGD/RFDO1R86   FRQWLQXLQJ HGXFDWLRQ UHODWLQJ WR H[LVWLQJ MRE GXWLHV EXW    IRRWQRWHRPLWWHG +RZHYHUWKH3RUWDOWR3RUWDO$FW LQVWHDGDSUHFRQGLWLRQIRUHPSOR\PHQWZKLFKWKHHPSOR\HU ZKLFKDPHQGVWKH)/6$PRGLILHGWKLVMXGLFLDOFRQVWUXFWLRQ WROHUDQWO\ DOORZV WR EH VDWLVILHG ZKLOH WKH HPSOR\HH LV RIKRXUVZRUNHGWRH[FOXGHIURPFRPSHQVDWLRQDFWLYLWLHVWKDW ZRUNLQJRQDSUREDWLRQDU\EDVLVl,G$QGWRWKHH[WHQWWKDW DUHmSUHOLPLQDU\WRRUSRVWOLPLQDU\WRVDLGSULQFLSDODFWLYLW\ WKHUHJXODWLRQZDVLQWHQGHGWRDSSO\WRVXFKVLWXDWLRQVWKH RUDFWLYLWLHVl 86&$† D   :HVW  $LNHQY %LHQNRZVNL FRXUW KHOG WKDW LW ZRXOG EH LQFRQVLVWHQW ZLWK &LW\RI0HPSKLV )G WK&LU  %DOORXj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mOHFWXUHVPHHWLQJVDQGWUDLQLQJSURJUDPVlLV SD\IRUWLPHLWVHPSOR\HHVVSHQGDVVWXGHQWVUDWKHUWKDQDV QRWFRPSHQVDEOHKRXUVZRUNHG6HH &)5† ZRUNHUV6HHLG:HGRQRWVHHZK\WKHHPSOR\HUVKRXOGEH SHQDOL]HGIRUDOORZLQJDSRWHQWLDOHPSOR\HHWREHJLQHDUQLQJ LQFRPHZKLOHVWULYLQJWRPHHWFHUWDLQSUHUHTXLVLWHVIRUWKHMRE ZKHQWKHHPSOR\HUFRXOGMXVWDVHDVLO\ZLWKKROGHPSOR\PHQW  7KH 3RUWDOWR3RUWDO $FW DOVR H[FOXGHV IURP FRPSHQVDWLRQ mZDONLQJ XQWLOVXFFHVVIXOFRPSOHWLRQRIDOOWKHMREUHTXLUHPHQWV:H ULGLQJ RU WUDYHOLQJ WR DQG IURP WKH DFWXDO SODFH RI SHUIRUPDQFH RI WKH PLJKW ZHOO KDYH HYDOXDWHG WKH VLWXDWLRQ GLIIHUHQWO\ LI WKH SULQFLSDO DFWLYLW\ RU DFWLYLWLHV ZKLFK VXFK HPSOR\HH LV HPSOR\HG WR SRWHQWLDOHPSOR\HHKDGEHHQXQDZDUHDQGXQLQIRUPHGRIWKLV SHUIRUPl  86&$ †  D  :HVW     &KDRY7UDGHVPHQ,QWjO 1R 1R &KDRY7UDGHVPHQ,QWjO 

,Q %DOORX DSSUHQWLFHV LQ D SURJUDP UXQ E\ WKH $WWHQGDQFH DW OHFWXUHV PHHWLQJV WUDLQLQJ SURJUDPV HPSOR\HU VRXJKW FRPSHQVDWLRQ IRU WLPH VSHQW DQG VLPLODU DFWLYLWLHV QHHG QRW EH FRXQWHG DV ZRUNLQJ DWWHQGLQJFODVVHVFRQGXFWHGRIIVLWHE\LQGHSHQGHQW WLPHLIWKHIROORZLQJIRXUFULWHULDDUHPHW HGXFDWLRQDO LQVWLWXWLRQV  7KH DSSUHQWLFHV ZHUH UHTXLUHGE\WKHLUHPSOR\PHQWFRQWUDFWVWRSUHSDUH D $WWHQGDQFHLVRXWVLGHRIWKHHPSOR\HHjVUHJXODU IRUDWWHQGDQGPDNHVDWLVIDFWRU\SURJUHVVLQWKHVH ZRUNLQJKRXUV FODVVHV  $Q DSSUHQWLFH ZKR IDLOHG WR NHHS WKHVH E $WWHQGDQFHLVLQIDFWYROXQWDU\  FRQGLWLRQVZDVVXEMHFWWRGLVPLVVDO)RUWKHPRVW F  7KH FRXUVH OHFWXUH RU PHHWLQJ LV QRW GLUHFWO\ SDUWWKHRIIVLWHFODVVZRUNGLGQRWUHODWHGLUHFWO\WR UHODWHGWRWKHHPSOR\HHjVMRE DQG WKHVNLOOVDSSUHQWLFHVUHFHLYHGLQRQWKHMREWUDLQLQJ G 7KHHPSOR\HHGRHVQRWSHUIRUPDQ\SURGXFWLYH LWV DSSURDFK ZDV PRUH WKHRUHWLFDO SURYLGLQJ WKH ZRUNGXULQJVXFKDWWHQGDQFH DSSUHQWLFHVZLWKDQDFDGHPLFXQGHUVWDQGLQJRIWKH VNLOOVWKH\ZHUHGHYHORSLQJ,GDW ,G7KDWLVZKHQWKHDFWLYLW\PHHWVDOORIWKHIRXUFULWHULD OLVWHGDERYHWKHWLPHLVQRWFRPSHQVDEOH :H FRQFOXGHG LQ %DOORX WKDW WKH WLPH VSHQW LQ VXFKFODVVHVZDVQRWFRPSHQVDEOH:HUHMHFWHGWKH 7KHSDUWLHVVWLSXODWHGLQWKHGLVWULFWFRXUWWKDW7UDGHVPHQjV QRWLRQ WKDW WKH WUDLQLQJ ZDV LQWHJUDO DQG 26+$ WUDLQLQJ FRXUVH VDWLVILHG WKH ILUVW WKLUG DQG IRXUWK LQGLVSHQVDEOHWRWKHHPSOR\HHVjSULQFLSDODFWLYLWLHV HOHPHQWV RI WKLV WHVW  7KXV WKH RQO\ FULWHULRQ DW LVVXH LV VLPSO\EHFDXVHWKHHPSOR\HHFRXOG EHWHUPLQDWHG ZKHWKHU DWWHQGDQFH DW 7UDGHVPHQjV 26+$ FRXUVH LV IRUIDLOLQJWRFRPSOHWHLWLQDVDWLVIDFWRU\PDQQHU YROXQWDU\DQGWKHUHIRUHQRQFRPSHQVDEOHXQGHUWKH)/6$ ,G DW   :H QRWHG DOVR WKDW XQGHU VHWWOHG m,QYROXQWDU\ DWWHQGDQFHl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† FRQFOXGHG WKDW WKH HPSOR\HUjV GHFLVLRQ WR KLUH LWV HPSOR\HHVEHIRUHWKHFRPSOHWLRQRIWUDLQLQJGLGQRW ,QFRQFOXGLQJWKDW3ODLQWLIIVjDWWHQGDQFHZDVLQYROXQWDU\ REOLJDWHLWWRFRPSHQVDWHWKHPIRUWKHWLPHVSHQWLQ WKHGLVWULFWFRXUWUXOHGWKDW WKHLUVWDWXVDVVWXGHQWVDIWHUWKHLUKLULQJ,GDW 8QGHU WKH GHILQLWLRQ RI mLQYROXQWDU\l LQ   &)5 :HILQGRXUUHDVRQLQJLQ%DOORXGLVSRVLWLYHLQWKLV †WKHWLPH7UDGHVPHQHPSOR\HHVVSHQGLQWKH FDVHDVZHOO+HUHWKHUHLVQRTXHVWLRQWKDWGXULQJ 26+$ WUDLQLQJ FRXUVH LV FRPSHQVDEOH  7KHUH LV QR WKH(07WUDLQLQJVHVVLRQVWKHHPSOR\HHVSHUIRUP TXHVWLRQ WKDW HPSOR\HHV ZKR KDYH EHJXQ ZRUNLQJ DW QRSURGXFWLYHZRUNIRUWKHHPSOR\HU1RULVWKHUH 7UDGHVPHQDUHmJLYHQWRXQGHUVWDQGRUOHGWREHOLHYHWKDW >WKHLU@SUHVHQWZRUNLQJFRQGLWLRQVRUWKHFRQWLQXDWLRQRI  &KDRY7UDGHVPHQ,QWjO 1R 1R &KDRY7UDGHVPHQ,QWjO

>WKHLU@HPSOR\PHQWZRXOGEHDGYHUVHO\DIIHFWHGlLIWKH\  )G    '& &LU    KROGLQJ WKDW GLGQRWDWWHQGWKHFRXUVH7KH)LHOG(PSOR\HH3ROLF\ HPSOR\HH UHSUHVHQWDWLYHV ZKR DFFRPSDQLHG IHGHUDO VDIHW\ 0DQXDOH[SOLFLWO\VWDWHVWKDWDQ\HPSOR\HHZKRKDVQRW LQVSHFWRUVLQDZRUNSODFHLQVSHFWLRQZKHUHWKHHPSOR\HUGLG FRPSOHWHG WKH FRXUVH ZLWKLQ WKH ILUVW  GD\V RI QRW VHOHFW WKH UHSUHVHQWDWLYH DQG KDG QR FRQWURO RYHU WKH HPSOR\PHQW ZLOOQRWEHVHQWRXWRQQHZDVVLJQPHQWV UHSUHVHQWDWLYHjVSDUWLFLSDWLRQRUWKHIRUPVDQGH[WHQWRIKLV DQG7UDGHVPHQGRHVQRWGLVSXWHWKDWQRWEHLQJVHQWRXW SDUWLFLSDWLRQZHUHQRWHQWLWOHGWRFRPSHQVDWLRQDEVHQWSURRI RQQHZDVVLJQPHQWVHIIHFWLYHO\WHUPLQDWHVHPSOR\PHQW RIGLUHFWEHQHILWDQGHPSOR\HUFRQWURO  7KH GLVWULFW FRXUW UHMHFWHG 7UDGHVPHQj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jV ZRUNLQJ FRQGLWLRQV RU WKH FRQWLQXDWLRQ RI KLV XQLYHUVLW\$VDFRQGLWLRQRIWKHLUHPSOR\PHQWWKHSODLQWLIIV HPSOR\PHQW ZHUH UHTXLUHG WR UHFHLYH DQG UHWDLQ FHUWLILFDWLRQ DV 0DVVDFKXVHWWVUHJLVWHUHG (07V ZLWKLQ RQH \HDU RI WKHLU 7UDGHVPHQFLWHVVHYHUDOFDVHVLQVXSSRUWRILWVDUJXPHQW DSSRLQWPHQWDVSUREDWLRQDU\SROLFHRIILFHUV,GDW $W WKDW WKH HPSOR\HHjV VWDWH RI PLQG DW WKH WLPH RI KLV LQLWLDO WKHWLPHRIKLUHWKHSODLQWLIIVZHUHUHTXLUHGWRVLJQDOHWWHU GHFLVLRQWRWDNHWKHFRXUVHLVZKDWFRQWUROV6HH'H%UDVNDY DFNQRZOHGJLQJ WKDW WKH\ ZRXOG UHFHLYH WKH FHUWLILFDWLRQ &LW\ RI 0LOZDXNHH   )G   WK &LU  ZLWKLQRQH\HDURIDSSRLQWPHQW,G7KHWUDLQLQJWRRNSODFH KROGLQJWKDWSROLFHRIILFHUVZHUHQRWHQWLWOHGWRFRPSHQVDWLRQ GXULQJWKHSODLQWLIIVjSUREDWLRQDU\SHULRGVDQGWKH\SHUIRUPHG IRUDWWHQGLQJSUHOLPLQDU\KHDULQJVEHFDXVHWKHRIILFHUVGLGQRW QR(07VHUYLFHVSULRUWRREWDLQLQJWKHLUFHUWLILFDWLRQV,G mIRUIHLW DQ\WKLQJlE\IDLOLQJWRDWWHQG %HQVKRIIY&LW\RI 7KH SODLQWLIIV SHUIRUPHG QR ZRUN ZKLOH WKH\ DWWHQGHG WKH 9LUJLQLD %HDFK  )G   WK &LU  FHUWLILFDWLRQ FODVVHV  ,G  7KH SODLQWLIIV DUJXHG DQG WKH KROGLQJ WKDW FLW\ ILUHILJKWHUV ZKR YROXQWHHUHG WR SURYLGH GLVWULFWFRXUWDJUHHGWKDWWKHWLPHVSHQWLQ(07WUDLQLQJZDV DGYDQFHG OLIH VXSSRUW VHUYLFHV IRU WKH FLW\j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