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

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

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

81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH    1R Y  !  7200< $17+21< 1(:(//  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1Rn5REHUW+&OHODQG'LVWULFWsXGJH $UJXHG $XJXVW 'HFLGHGDQG)LOHG 2FWREHU %HIRUH 0225(DQG&2/(&LUFXLWsXGJHV 0$5%/(< 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('   1DQF\ / 0F*XQQ )('(5$/ 38%/,& '()(1'(56 2)),&( 'HWURLW 0LFKLJDQ IRU $SSHOODQW 'DQLHO / /HPLVFK $66,67$17 81,7(' 67$7(6

7KH +RQRUDEOH $OJHQRQ / 0DUEOH\ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY1HZHOO 1R 1R 8QLWHG6WDWHVY1HZHOO 

$77251(<'HWURLW0LFKLJDQIRU$SSHOOHH21%5,() 7KHUHIRUHWKH&RXUWILQGVWKDWWKHWRQHRIWKHWKUHDWVDORQJ 1DQF\/0F*XQQ5LFKDUGs2j1HLOO)('(5$/38%/,& ZLWK 1HZHOOjV RWKHU RYHUW FRQGXFW VXSSRUWHG D VL[OHYHO '()(1'(56 2)),&( 'HWURLW 0LFKLJDQ IRU $SSHOODQW HQKDQFHPHQWRI1HZHOOjVVHQWHQFHEDVHGRQWKHIDFWWKDWKLV 'DQLHO / /HPLVFK $66,67$17 81,7(' 67$7(6 FRQGXFWHYLGHQFHGDQLQWHQWWRFDUU\RXWWKHWKUHDWV $77251(<'HWURLW0LFKLJDQIRU$SSHOOHH ,9&21&/86,21 BBBBBBBBBBBBBBBBB %DVHGRQWKHIRUHJRLQJDQDO\VLVWKH&RXUW$)),506WKH 23,1,21 GLVWULFW FRXUWjV MXGJPHQW DQG VHQWHQFH RQ 'HIHQGDQW BBBBBBBBBBBBBBBBB $SSHOODQWjVFRQYLFWLRQIRUWUDQVPLWWLQJWKUHDWHQLQJLQWHUVWDWH FRPPXQLFDWLRQVLQYLRODWLRQRI86&† F  $/*(121 / 0$5%/(< 'LVWULFW sXGJH  'HIHQGDQW $SSHOODQW7RPP\$QWKRQ\1HZHOO m1HZHOOl DSSHDOVWKH GLVWULFWFRXUWjVMXGJPHQWRQKLVFRQYLFWLRQIRUWUDQVPLWWLQJ WKUHDWHQLQJ LQWHUVWDWH FRPPXQLFDWLRQV LQ YLRODWLRQ RI  86&† F 1HZHOODVVLJQVHUURUWRWKHGLVWULFWFRXUWjV DSSOLFDWLRQRIDVL[SRLQWHQKDQFHPHQWWRKLVVHQWHQFHEDVHG RQ WKH GLVWULFW FRXUWjV ILQGLQJ WKDW 1HZHOOjV FRQGXFW HYLGHQFHG DQ LQWHQW WR FDUU\ RXW WKH WKUHDW WKDW IRUPHG WKH EDVLVRIKLVFRQYLFWLRQ7KLV&RXUWjVDSSHOODWHMXULVGLFWLRQLV SURSHUXQGHU86&†DQG86&†  )RU WKH IROORZLQJ UHDVRQV WKH &RXUW $)),506 WKH MXGJPHQWRIWKHGLVWULFWFRXUW ,%$&.*5281' $)DFWXDO%DFNJURXQG )URP'HFHPEHU WKURXJK$XJXVW1HZHOOKDGDQ LQWLPDWHUHODWLRQVKLSZLWK&\QWKLD+DPGHQDPDUULHGZRPDQ ZKRP 1HZHOO PHW RYHU WKH ,QWHUQHW  $W WKH WLPH RI WKHLU LQLWLDO PHHWLQJ 0V +DPGHQjV KXVEDQG 5LFKDUG +DPGHQ ZDV LQFDUFHUDWHG  7KURXJKRXW WKHLU UHODWLRQVKLS 1HZHOO UHVLGHGLQ8WDKDQG0V+DPGHQUHVLGHGLQ0LFKLJDQ :KHQ WKH\ ILUVW PHW 1HZHOO DQG 0V +DPGHQ FRPPXQLFDWHG YLD WKH ,QWHUQHW EXW HYHQWXDOO\ H[FKDQJHG SKRQH QXPEHUV DQG EHJDQ FRPPXQLFDWLQJ RYHU WKH WHOHSKRQH  ,Q $SULO  0V +DPGHQ IOHZ WR 1HZHOOjV KRPH LQ 8WDK DQG VWD\HG IRU DSSUR[LPDWHO\ RQH ZHHN E\ WKH FRXUW WKH HQKDQFHPHQW WR WKH GHIHQGDQWjV VHQWHQFH ZRXOG KDYH EHHQ XSKHOG  8QLWHG6WDWHVY1HZHOO 1R 1R 8QLWHG6WDWHVY1HZHOO 

QRWUHO\RQWKHWKUHDWVDORQHWRDSSO\D†$ E  VL[OHYHO 'XULQJWKHFRXUVHRIWKHLUUHODWLRQVKLS1HZHOODOVRYLVLWHG HQKDQFHPHQW6HH8QLWHG6WDWHVY*R\QHV)G 0V+DPGHQDQXPEHURIWLPHVLQ0LFKLJDQZKHQKHWUDYHOHG  WK &LU   KROGLQJ WKDW mWKH ZULWLQJ RI PXOWLSOH FURVVFRXQWU\IRUKLVMREDVDORQJKDXOWUXFNGULYHU WKUHDWHQLQJOHWWHUVDQGWKHQDWXUHRIWKHLUFRQWHQWDORQHDUH LQVXIILFLHQWWRMXVWLI\lDVL[OHYHOHQKDQFHPHQWSXUVXDQWWR ,Q $XJXVW  0V +DPGHQ DGYLVHG 1HZHOO WKDW VKH †$ E  %XWVHH8QLWHG6WDWHVY7KRPDV)G ZDQWHGWRWHUPLQDWHWKHLUUHODWLRQVKLSDVVKHKDGUHFRQFLOHG   WK&LU   ILQGLQJWKDWWKHILYHWKUHDWHQLQJ ZLWKKHUKXVEDQGXSRQKLVUHOHDVHIURPSULVRQ6RRQDIWHUKH OHWWHUVWKDWZHUHVHQWWRWKHYLFWLPE\WKHGHIHQGDQWSURYLGHG UHFHLYHG WKLV QHZV 1HZHOO EHJDQ VHQGLQJ KDUDVVLQJ DQG SUREDWLYH HYLGHQFH RI WKH GHIHQGDQWjV LQWHQW WR KDUP WKH WKUHDWHQLQJ HPDLO PHVVDJHV WR 0V +DPGHQ  %HWZHHQ YLFWLP ,QGHHGLWZRXOGQRWEHSURSHUIRUDGLVWULFWFRXUWWR $XJXVW   DQG 6HSWHPEHU   1HZHOOVHQW UHO\ RQ WKH QXPEHU RI WKUHDWV DORQH DV WKDW IDFW LV DOUHDG\ DSSUR[LPDWHO\VHYHQW\HPDLOPHVVDJHVWR0V+DPGHQ +H WDNHQLQWRDFFRXQWE\866*†$ E  ZKLFKDOORZV IRUDWZROHYHOHQKDQFHPHQWm>L@IWKHRIIHQVHLQYROYHGPRUH WKDQ WZR WKUHDWVl  86 6(17(1&,1* *8,'(/,1(6  †$ E  VHH*R\QHV)GDW UHDVRQLQJWKDW 7KH IROORZLQJ LV D UHSUHVHQWDWLYH VDPSOLQJ RI WKH HPDLO PHVVDJHV

LIWKH6HQWHQFLQJ&RPPLVVLRQDFFRXQWHGIRUWKHQXPEHURI 1HZHOO VHQW 0V +DPGHQ GXULQJ WKLV WLPH SHULRG

FRPPXQLFDWLRQV E\ LPSRVLQJ DQ HQKDQFHPHQW XQGHU 6XQGD\ $XJXVW     SP † $ E   WKHQ WKH QXPEHU RI WKUHDWHQLQJ FRPPXQLFDWLRQVFRXOGQRWDOVREHUHOLHGXSRQWRWULJJHUDVL[ 7+( 6,/(17 ,7j6 7+( )8&.,1* 6,/(1&( 7+$7 )8&.6

OHYHOHQKDQFHPHQWXQGHU†$ E   0( 83 7+( :2567 $1' <28 '21j7 (9(1 0(17,21(' ,7 25 $32/2*,=( 25 $1<7+,1* 7+(

7KHGLVWULFWFRXUWSURSHUO\DQDO\]HGWKHLVVXHKHUHLQWKDW 6,/(17 75($70(17 <28 $5( *,9,1* :,// (9(178$//< %( 7+( 21( 7+,1* 7+$7 &28/' WKHFRXUWGLGQRWUHO\RQWKHWKUHDWVDORQHLQFRQFOXGLQJWKDW &$86( (9(5<%2'< 3$,1 WKH HQKDQFHPHQW ZDV SURSHU  7R WKH FRQWUDU\ WKH GLVWULFW FRXUW FRQVLGHUHG QRW RQO\ WKH QDWXUH DQG QXPEHU RI WKH $XJXVW      SP

WKUHDWV EXW DOVR 1HZHOOjV RYHUW DFWV RI SXUFKDVLQJ D  FDOLEHU KDQGJXQ DQG VHSDUDWHO\ SXUFKDVLQJ WKH UHTXLVLWH ,) 8 :$17 72 3/$< )8&.,1* *$0(6 7+(1 /(76 3/$< 8 5 127 7+( 21/< 21( :+2 &$1 %( &2/' DPPXQLWLRQ  7KLV DQDO\VLV ZKROO\ FRPSRUWV ZLWK WKH UXOH +($57(' $1' , *$5$817(( 8 :,// )8&.,1* HVWDEOLVKHGE\WKHPDMRULW\RIFLUFXLWVWKDWKDYHDGGUHVVHGWKLV /226( (9(1 ,) , ',(

LVVXHDQGDGRSWHGKHUHLQUHTXLULQJWKDWWKHGHIHQGDQWHQJDJH LQVRPHRYHUWFRQGXFWLQDGGLWLRQWRPDNLQJWKHWKUHDWVEHIRUH $XJXVW     SP

D†$ E  HQKDQFHPHQWFDQEHVXVWDLQHG6HH*R\QHV )GDWQ OLVWLQJFDVHVDGRSWLQJWKLVUXOH  ,7 5($//< ,6 $ %$' ,'($ 72 7851 <285 %$&. 21 0( 12: 7+$7 +( ,6 +20( ,7 &$1 '(6752< 86 $// 3/($6( , 1((' <28

 6XQGD\ 6HSWHPEHU     SP 6LJQLILFDQWO\ HYHQ LQ *R\QHV LWVHOI WKH FRXUW QRWHG WKDW WKH GHIHQGDQW QHLWKHU SXUFKDVHG D ZHDSRQ RU DPPXQLWLRQ QRU WUDYHOHG WR WKH , :,// 127 %( ',65(63(&7(' /,.( 7+,6    , 75,(' YLFWLPjV KRPH RU FLW\ QRU HQJDJHG LQ mDQ\ RWKHU FOHDUO\ UHFRJQL]DEOH 72 '2 7+,6 <285 :$< %87 <285 :$< +8576 722 RYHUW DFW WKDW FRXOG EH FRQVLGHUHG FRQGXFW HYLGHQFLQJ DQ LQWHQW WR FDUU\ 08&+ , 7$.( $// 7+( 3$,1 :+,/( <28 $1' 5,&+ RXW KLV WKUHDWl *R\QHV   )G DW  7KH &RXUW LQIHUV WKDW KDG WKHUH +$9( )81 :(// 67$57,1* 7202552: 7+( 58/(6 EHHQ HYLGHQFH RI VRPH RYHUW DFW VLPLODU WR WKRVH VSHFLILFDOO\ PHQWLRQHG $5( *2,1* 72 &+$1*( %(&$86( , :,// 127 *2  8QLWHG6WDWHVY1HZHOO 1R 1R 8QLWHG6WDWHVY1HZHOO 

DOVROHIWWKUHDWHQLQJYRLFHPDLOPHVVDJHVDWKHUKRPHRQKHU FRQWHQW RI WKH WKUHDWV FDQQRW EH GHHPHG mFRQGXFWl FHOOXODUSKRQHDQGDWWKHKRPHVRIKHUIDPLO\PHPEHUV LQGHSHQGHQWRIWKHFRPPXQLFDWLRQLWVHOIWRMXVWLI\DVL[OHYHO HQKDQFHPHQWEHFDXVHWKHIDFWWKDWWKHFRPPXQLFDWLRQVZHUH 2QRUDERXW6HSWHPEHUDGHSXW\IURPWKH0RQURH DQJU\RUWKUHDWHQLQJLVDFFRXQWHGIRULQWKHFRQYLFWLRQIRUWKH &RXQW\6KHULIIjV'HSDUWPHQWLQ0RQURH&RXQW\0LFKLJDQ FKDUJHGRIIHQVH ZDUQHG1HZHOOWRVWRSFRQWDFWLQJ0V+DPGHQDQGKHUIDPLO\ PHPEHUV'HVSLWHWKLVZDUQLQJ1HZHOOFRQWLQXHGZLWKKLV &RQVLGHUDWLRQ RI WKH WRQH RI WKH WKUHDWV YLHZHG LQ FRQMXQFWLRQ ZLWK WKH GHIHQGDQWjV RWKHU RYHUW FRQGXFW LV SURSHULQGHWHUPLQLQJZKHWKHUWKHGHIHQGDQWLQWHQGHGWRFDUU\ 287 /,.( 7+,6 12 )8&.,1* :$<@@@@@@ RXWKLVWKUHDWV6HH8QLWHG6WDWHVY&DUWHU)G   WK &LU    m,Q GHFLGLQJ ZKHWKHU WR DSSO\ WKH 0RQGD\ 6HSWHPEHU    DP HQKDQFHPHQW FRXUWV PD\ HYDOXDWH QRW RQO\ D GHIHQGDQWjV RYHUWDFWLYLW\FRQQHFWHGWRWKHWKUHDWEXWDOVRWKHQDWXUHDQG :+< 6+28/' , &$5( ,) <28 +$7( $1<025( ,j// 67,// %( 75($7(' /,.( 6+,7 %87 , 0( 25 127 VHULRXVQHVV RI WKH WKUHDWV WKHPVHOYHVl  8QLWHG 6WDWHV Y $0 *2,1* 72 *,9( <28 $ 5($621 72 +$7( 0( .LUVK)G G&LU   FRQVLGHULQJWKHIDFW 12: , 75,(' <285 :$< $1' <28 s867 .((3 /<,1* WKDWWKHWKUHDWHQLQJOHWWHUVFRQWDLQHGODQJXDJHVXFKDVm,jP $1' %8//6+,77,1* $1' +857,1* :(// ,76 7,0( JRLQJWREORZ\RXDZD\lDORQJZLWKWKHGHIHQGDQWVjRYHUWDFW 7+$7 , )8&.,1* ),*+7 ),5( :,7+ ),5( RI SRVVHVVLQJ ZHDSRQV LQ GHWHUPLQLQJ WKDW WKH VL[SRLQW  HQKDQFHPHQWZDVSURSHU 7KHGLVWULFWFRXUWKRZHYHUPD\ 7KH IROORZLQJ LV D UDQGRP VDPSOLQJ RI WKH WZHQW\VL[ YRLFH PDLO PHVVDJHV 1HZHOO OHIW IRU 0V +DPGHQ GXULQJ WKLV WLPH SHULRG

 $XJXVW     SP m   ,jP WHOOLQJ \RX ULJKW QRZ :H ORRN WR WKH KROGLQJV RI RXU VLVWHU FLUFXLWV UHJDUGLQJ WKH DELOLW\ RI <RXjUH GRLQJ LW WKH ZURQJ ZD\ ,I \RXjUH IXFNLQJ VPDUW \RX WKH VHQWHQFLQJ FRXUW WR UHO\ RQ WKH WKUHDWV WKHPVHOYHV WR FRQFOXGH WKDW WKH EHWWHU VWD\ FORVH WR PH ,I \RXjUH VPDUW \RXjOO WDON WR PH <RXjUH GHIHQGDQW LQWHQGHG WR FDUU\ RXW WKRVH WKUHDWV $OWKRXJK WKLV &RXUW KDV WDONLQJ WR VRPHRQH QRZ WKDWjV JRW QRWKLQJ WR ORVH , GRQjW JLYH DGGUHVVHG WKLV SUHFLVH LVVXH VHH 8QLWHG 6WDWHV Y /RZHQVWHLQ )G  D IXFN DERXW MDLO RU GHDWK 6R \RX FRXOG EH IXFNLQJ VPDUWl WK &LU    LW GLG VR EHIRUH † $ ZDV DPHQGHG WR LQFOXGH WKH FXUUHQW † $ E   ZKLFK UHTXLUHV D WZRSRLQW HQKDQFHPHQW LI WKH 0RQGD\  DP m, GRQjW NQRZ ZKDW NLQG RI JDPH \RXjUH RIIHQVH LQYROYHG PRUH WKDQ WZR WKUHDWV $W WKH WLPH WKDW WKLV &RXUW SOD\LQJ , GRQjW NQRZ ZK\ \RX KDG WKH SKRQH FXW RII 7KDW ZDV GHFLGHG /RZHQVWHLQ † $ E UHDG LQ UHOHYDQW SDUW DV IROORZV WKH ZURQJ PRYH (YHU\WKLQJ EORZV XS ULJKW QRZl  ,I WKH GHIHQGDQW HQJDJHG LQ DQ\ FRQGXFW HYLGHQFLQJ DQ LQWHQW 0RQGD\   SP m    ,I , GRQjW KHDU E\ IURP \RX E\ WR FDUU\ RXW VXFK WKUHDW LQFUHDVH E\  OHYHOV WRPRUURZ ,jP FDOOLQJ \RXU PRP ,I , GRQjW KHDU IURP \RX E\  ,I VSHFLILF RIIHQVH FKDUDFWHULVWLF † $ E  GRHV QRW WRPRUURZ ,jP FDOOLQJ /LVD     $QG LI , GRQjW JHW QR UHVXOWV DSSO\ DQG WKH GHIHQGDQWjV FRQGXFW LQYROYHG D VLQJOH LQVWDQFH IURP WKHP ,jP JHWWLQJ RQ D SODQH DQG FRPLQJ XS WKHUH <RXjUH HYLGHQFLQJ OLWWOH RU QR GHOLEHUDWLRQ GHFUHDVH E\  OHYHOV QRW JRLQJ WR IXFNLQJ GR WKLV 1RZ \RX ZDQW WR IXFNLQJ SOD\ URXJK" ,WjV JRLQJ WR JHW UHDO IXFNLQJ XJO\ 'R \RX ZDQW WR 6HH /RZHQVWHLQ  )G DW  ILQGLQJ WKDW † $ DV ZULWWHQ LQ IXFNLQJ EH VWXSLG"    6R WKH KHOO ZLWK \RX $QG WKH KHOO ZLWK   GLG QRW DGHTXDWHO\ WDNH LQWR DFFRXQW WKH QXPEHU DQG GHOLEHUDWLYH DOO RI \RX ,WjV JRLQJ WR JHW UHDO IXFNLQJ QDVW\ QRZ QDWXUH RI WKH WKUHDWV LQYROYHG VR WKDW D VL[OHYHO HQKDQFHPHQW XQGHU † $ E  ZDV SURSHU ZKHQ WKH GHIHQGDQW PDGH WKLUW\ SKRQH FDOOV WR 0RQGD\   SP m   6R \RX FDQ GR LW WKH HDV\ ZD\ RU \RX WKH YLFWLP RYHU HLJKW PRQWKV DQG FRQWLQXHG KLV EHKDYLRU DIWHU WKH )%, WKLQN \RX ZDQW WR IXFN ZLWK PH WKHQ ZH ZLOO SOD\ $QG ,jOO ZDUQHG KLP WR VWRS  %HFDXVH WKH FXUUHQW IRUP RI † $ E  GRHV EHFRPH \RXU ZRUVW IXFNLQJ QLJKWPDUH ,jP QRW WKUHDWHQLQJ \RX SURYLGH IRU DQ HQKDQFHPHQW ZKHQ WKH GHIHQGDQW PDNHV PXOWLSOH WKUHDWV 7KLV LV QRW D WKUHDW ,WjV D IXFNLQJ SURPLVHl /RZHQVWHLQ LV RI PLQLPDO SUREDWLYH YDOXH  8QLWHG6WDWHVY1HZHOO 1R 1R 8QLWHG6WDWHVY1HZHOO 

8QLWHG 6WDWHV Y *UHHQ  )G   G &LU   FRPPXQLFDWLRQV  ,Q SDUWLFXODU RQ 6HSWHPEHU    XSKROGLQJWKHVL[OHYHOHQKDQFHPHQWEDVHGRQWKHIDFWWKDW 1HZHOOFRQWDFWHGDVHFUHWDU\DWWKHHOHPHQWDU\VFKRROZKHUH WKHGHIHQGDQWDVNHGDIULHQGZKRZDVDSROLFHRIILFHUWRUXQ 0V+DPGHQZDVHPSOR\HGDVDEXVGULYHU+HWROGKHUWKDW DFKHFNRQWKHYLFWLPjVOLFHQVHSODWHVRWKDWKHFRXOGOHDUQWKH mIRUWKHVDIHW\RIWKHNLGVWKH\QHHGWRJHW&LQG\RUWKHNLGV YLFWLPjVDGGUHVV  RII WKH EXVl  +H DOVR OHIW WKH IROORZLQJ PHVVDJH RQ WKH WHOHSKRQHDQVZHULQJPDFKLQHRI3DW0LOOHU0V+DPGHQjV 6LJQLILFDQWO\ WKLV FDVH LV GLVWLQJXLVKDEOH IURP 8QLWHG PRWKHU 6WDWHVY3KLOLEHUW )G WK&LU  RYHUUXOHG RQRWKHUJURXQGV8QLWHG6WDWHVY'DLOH\)G 3OHDVHWHOO&LQG\,GRQjWNQRZZKHQVKHjVJRLQJWRJHWLW WK&LU  RQZKLFKWKH'HIHQGDQWUHOLHV,Q3KLOLEHUW WKURXJKKHUIXFNLQJKHDG7KHUHjVQRWDIXFNLQJFRSRQ WKHGLVWULFWFRXUWHQKDQFHGWKHGHIHQGDQWjVVHQWHQFHSXUVXDQW WKHSODQHWWKDWFDQVWRSPH6KHFDQFDOODOOWKHFRSVVKH WR†$ E  EDVHGRQWKHGHIHQGDQWjVSXUFKDVHRIDFDFKH ZDQWV,jPJRLQJWR0LVVLVVLSSLWRVD\JRRGE\HWRP\ RIZHDSRQVDQGDPPXQLWLRQILIW\WKUHHGD\VEHIRUHKHPDGH PRP  ,jP FRPLQJ WKHUH  ,jP JRLQJ WR IXFNLQJ NLOO WKHWKUHDWHQLQJWHOHSKRQHFDOOIRUZKLFKKHZDVFRQYLFWHG,G 5LFKDUG7KHRQO\WKLQJWKDWjVJRLQJWRVWRSPHLVKHU DW7KHFLUFXLWFRXUWUHYHUVHGILQGLQJWKDWQRHYLGHQFH 6KHLVWKHRQO\RQHWKDWFDQVWRSPHE\FDOOLQJRUOHDYLQJ GHPRQVWUDWHG D FRQQHFWLRQ EHWZHHQ WKH SXUFKDVH RI WKH D QXPEHU ZKHUH , FDQ FDOO KHU  6KH FDQ EULQJ DOO WKH ILUHDUPVDQGDQLQWHQWWRFDUU\RXWWKHWKUHDWPDGHDOPRVWWZR IXFNLQJ FRSV VKH ZDQWV DQG , ZLOO SURYH WR HYHU\ERG\ PRQWKVODWHU,G1HZHOOXQOLNHWKHGHIHQGDQWLQWKDWFDVH WKH\ZLOOJHWPHEXW,ZRQjWEHIXFNLQJDOLYHDQGWKHUH SXUFKDVHGWKHZHDSRQRQWKHYHU\GD\KHPDGHWKHWKUHDWVDW ZRXOGEHERGLHVZLWKPH7KDQN\RX LVVXH7KHWHPSRUDOSUR[LPLW\RIWKHSXUFKDVHRIWKHZHDSRQ WRWKHPDNLQJRIWKHWKUHDWVHVWDEOLVKHVDQH[XVEHWZHHQWKH 2QWKHVDPHGD\WKDWKHPDGHWKHIRUHJRLQJWHOHSKRQHFDOOV WZRDFWVDQGGLVWLQJXLVKHVWKLVFDVHIURP3KLOLEHUW 1HZHOOSXUFKDVHGDFDOLEHUVHPLDXWRPDWLFKDQGJXQIURP DSDZQVKRSLQ5R\8WDK%HFDXVHWKHSDZQVKRSGLGQRW $FFRUGLQJO\WKH&RXUWFRQFOXGHVWKDW1HZHOOjVSXUFKDVHRI FDUU\ WKH SURSHU DPPXQLWLRQ 1HZHOO PDGH D VHSDUDWH DFDOLEHUVHPLDXWRPDWLFILUHDUPDQGDPPXQLWLRQRQWKH SXUFKDVHRIDPPXQLWLRQDWDQRWKHUORFDWLRQ VDPHGD\WKDWKHPDGHWKHWKUHDWWKDWIRUPHGWKHEDVLVRIWKH LQGLFWPHQWGHPRQVWUDWHVWKDWKLVWKUHDWVDUHmPRUHWKDQPHUH )ROORZLQJKLVSXUFKDVHRIWKHKDQGJXQ1HZHOOWUDYHOHGWR SXIIHU\l DQG HYLGHQFHV DQ LQWHQW WR FDUU\ RXW WKH WKUHDWV :\RPLQJIRUZRUN2Q6HSWHPEHUKHZDVDJDLQ WKHUHE\PDNLQJDSSURSULDWHDVL[OHYHOVHQWHQFHHQKDQFHPHQW FRQWDFWHG E\ DQ RIILFHU RI WKH 0RQURH &RXQW\ 6KHULIIjV XQGHU866*†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mDPDQRQDPLVVLRQlGHWHUPLQHGWRFDUU\  FDOLEHU PDJD]LQH WKDW FRQWDLQHG HLJKW OLYH URXQGV RI RXWKLVWKUHDWV1HZHOOKRZHYHUDUJXHVWKDWWKHWRQHDQG DPPXQLWLRQ  8QLWHG6WDWHVY1HZHOO 1R 1R 8QLWHG6WDWHVY1HZHOO 

%3URFHGXUDO+LVWRU\ ,Q .LUVK WKH GHIHQGDQWV KXVEDQG DQG ZLIH ZKR VHQW WKUHDWHQLQJOHWWHUVWRQXPHURXVSHRSOHWKURXJKRXWWKH8QLWHG 2Q2FWREHUDRQHFRXQW,QGLFWPHQWZDVILOHGLQ 6WDWHV EHWZHHQ 1RYHPEHU   DQG )HEUXDU\   ZHUH WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ FKDUJLQJ 1HZHOO ZLWK FRQYLFWHGRIVHQGLQJWKUHDWHQLQJFRPPXQLFDWLRQVWKURXJKWKH WUDQVPLWWLQJ WKUHDWHQLQJ LQWHUVWDWH FRPPXQLFDWLRQV LQ PDLO  .LUVK  )G DW   2Q DSSHDO WKH 6HFRQG YLRODWLRQRI86&† F 7KHFKDUJHZDVEDVHGRQ &LUFXLWXSKHOGWKHGLVWULFWFRXUWjVVL[OHYHOHQKDQFHPHQWRI 1HZHOOj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† F ,QWKH SOHD DJUHHPHQW ERWK WKH *RYHUQPHQW DQG WKH 'HIHQGDQW :HDJUHHZLWKWKHDQDO\VLVVHWIRUWKLQ&DUWHUDQG.LUVK LQGLFDWHGWKDWWKH\DQWLFLSDWHGWKDWWKHVHQWHQFLQJUDQJHZRXOG DQG KROG WKDW 1HZHOOjV SXUFKDVH DQG SRVVHVVLRQ RI D  EHWZHOYHWRHLJKWHHQPRQWKVEDVHGXSRQDQRIIHQVHOHYHORI FDOLEHUKDQGJXQLQFORVHWHPSRUDOSUR[LPLW\WRWKHPDNLQJRI  DQG D FULPLQDO KLVWRU\ FDWHJRU\ RI ,, XQGHU WKH 8QLWHG WKHWKUHDWVFRQVWLWXWHVFRQGXFWWKDWVXIILFLHQWO\VXSSRUWVDVL[ 6WDWHV 6HQWHQFLQJ *XLGHOLQHV m866*l   7KH\ OHYHO HQKDQFHPHQW XQGHU † $ E    6LPLODU WR WKH DFNQRZOHGJHGKRZHYHUWKDWWKHUDQJHZDVQRWELQGLQJXSRQ GHIHQGDQWVLQERWK&DUWHUDQG.LUVK1HZHOOSXUFKDVHGDQG WKHVHQWHQFLQJFRXUW SRVVHVVHGDFDOLEHUVHPLDXWRPDWLFSLVWRODQGDPDWFKLQJ PDJD]LQHFRQWDLQLQJHLJKWOLYHURXQGVRIDPPXQLWLRQRQWKH 7KH3UREDWLRQ'HSDUWPHQWLVVXHGD3UHVHQWHQFH5HSRUWRQ VDPH GD\ WKDW KH PDGH WKH WKUHDWV  7KH SXUFKDVH RI WKH sDQXDU\    ,Q WKH UHSRUW WKH 3UREDWLRQ 2IILFHU ZHDSRQDQGDPPXQLWLRQRQWKHYHU\GD\KHPDGHWKHWKUHDWV FDOFXODWHGDVHQWHQFLQJUDQJHRIWZHQW\VHYHQWRWKLUW\WKUHH SURYLGHV D FOHDU LQGLFDWLRQ WKDW KH LQWHQGHG WR DFW RQ KLV PRQWKV7KHRIILFHUDUULYHGDWWKDWUDQJHE\IDFWRULQJLQDVL[ WKUHDWHQLQJZRUGVDQGKDGWKHPHDQVWRGRVR,QDGGLWLRQ SRLQW HQKDQFHPHQW WR 1HZHOOjV RIIHQVH OHYHO SXUVXDQW WR OLNHWKHGHIHQGDQWLQ&DUWHUHYHQWKRXJK1HZHOOOLYHGLQD 866*†$ E  EDVHGRQWKHFRQFOXVLRQWKDW1HZHOO GLIIHUHQWFLW\WKDQWKHYLFWLPVKHNQHZZKHUHWKH\OLYHGLQ HQJDJHGLQFRQGXFWWKDWGHPRQVWUDWHGDQLQWHQWWRFDUU\RXW 0LFKLJDQ7KHIDFWWKDWKHNQHZZKHUHWKH\OLYHGLQGLFDWHV WKHWKUHDWWRNLOO5LFKDUG+DPGHQ7KHVSHFLILFFRQGXFWFLWHG WKDWRQFHKHSXUFKDVHGWKHZHDSRQKHKDGWKHDELOLW\WRFDUU\ E\WKH3UREDWLRQ2IILFHUZDV1HZHOOjVSXUFKDVLQJRIDJXQRQ RXWKLVWKUHDW6HH8QLWHG6WDWHVY6RYLH)G WKHVDPHGD\WKDWKHPDGHWKHWKUHDW7KHRIIHQVHOHYHODOVR G &LU    DFNQRZOHGJLQJ WKDW WKH GHIHQGDQWjV UHIOHFWHG D WZRSRLQW HQKDQFHPHQW PDGH SXUVXDQW WR SRVVHVVLRQ RI WKH YLFWLPjV DGGUHVV DQG SKRQH QXPEHU ZDV 866* † $ E   EDVHG RQ WKH IDFW WKDW WKH RIIHQVH UHOHYDQW WR WKH GHIHQGDQWjV LQWHQW WR FDUU\ RXW KLV WKUHDWV LQYROYHGPRUHWKDQWZRWKUHDWV 7KH GLVWULFW FRXUW FRQGXFWHG D VHQWHQFLQJ KHDULQJ RQ  0DUFK $WWKHKHDULQJWKH'HIHQGDQWREMHFWHGWR ,W LV ZRUWK QRWLQJ WKDW 1HZHOO DFWXDOO\ WRRN D VWHS EH\RQG WKRVH

WKHVL[SRLQWLQFUHDVHUHFRPPHQGHGE\WKH3UREDWLRQ2IILFHU WDNHQ E\ WKH GHIHQGDQWV LQ .LUVK +H GLG QRW VLPSO\ DVN WKH VXSSOLHU RI WKH JXQ LI KH FRXOG DOVR VXSSO\ DPPXQLWLRQ EXW DOVR WRRN WKH QH[W VWHS RI SXUVXDQWWR866*†$ E  7KH'HIHQGDQWDUJXHG VHSDUDWHO\ SXUFKDVLQJ WKH DPPXQLWLRQ ZKHQ WKH JXQ VHOOHU FRXOG QRW LQWHUDOLDWKDWWKHKDQGJXQWKDWKHSXUFKDVHGRQ6HSWHPEHU VXSSO\ LW  8QLWHG6WDWHVY1HZHOO 1R 1R 8QLWHG6WDWHVY1HZHOO 

6HH8QLWHG6WDWHVY.LUVK)G G&LU   ZDVSXUFKDVHGIRUXVHLQWDUJHWSUDFWLFHQRWWRFDUU\ XSKROGLQJ WKH GLVWULFW FRXUWjV UHMHFWLRQ RI WKH GHIHQGDQWVj RXWKLVWKUHDWV7RVXSSRUWWKLVDUJXPHQW1HZHOOWHVWLILHG FODLPWKDWWKH\KDGSXUFKDVHGJXQVIRUWKHOHJLWLPDWHDFWLYLW\ WKDWKHKDGJRQHWRWKHVWRUHWRSXUFKDVHDFDOLEHUSLVWRO RI KXQWLQJ DV QRW FUHGLEOH   7KH FRXUW DFNQRZOHGJHG WKDW IRUXVHDWWDUJHWSUDFWLFHEXWWKDWWKHVWRUHGLGQRWKDYHDQ\ VRPHRIWKHHYLGHQFHLQGHHGVXSSRUWHG1HZHOOjVDUJXPHQW VXFK ILUHDUPV VR KH SXUFKDVHG WKH  FDOLEHU KDQGJXQ EXWLWZHQWRQWRZHLJKWKDWHYLGHQFHDJDLQVWWKHIDFWWKDWWKH LQVWHDG1HZHOODOVRSUHVHQWHGDOHWWHUZULWWHQE\DIULHQG JXQ ZDV SXUFKDVHG RQ WKH VDPH GD\ WKDW WKH WKUHDWV ZHUH 7HUU\$YHULOOLQZKLFK0V$YHULOOH[SODLQHGWKDW1HZHOOKDG PDGH  7KH GLVWULFW FRXUW DOVR ZHLJKHG 1HZHOOjV HYLGHQFH GLVFXVVHGZLWKKHUKLVLQWHQWWRSXUFKDVHDSLVWROWRXVHIRU DJDLQVW WKH FRQVLGHUDEOH LPSUREDELOLW\ WKDW DQ\RQH ZLWK WDUJHWSUDFWLFHDWWKHVKRRWLQJUDQJHDWKHUKRPH,QDGGLWLRQ VKRRWLQJ H[SHULHQFH ZRXOG SXUFKDVH D  FDOLEHU VHPL 1HZHOOSUHVHQWHGHYLGHQFHWKDWKHUHWXUQHGWRWKHSDZQVKRS DXWRPDWLFKDQGJXQVLPSO\IRUXVHDWWDUJHWSUDFWLFH$VWKH ZKHUH KH KDG SXUFKDVHG WKH JXQ WR FRUUHFW DQ HUURU LQ WKH GLVWULFWFRXUWDSWO\VWDWHGVXFKZHDSRQVDUHW\SLFDOO\XVHGIRU SDSHUZRUNWKDWDFFRPSDQLHGWKHILUHDUP  +HFODLPHGWKDW mFRQFHDOPHQWlDQGmSHUVRQDOSURWHFWLRQl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jVDUJXPHQWVDQGIRXQGWKDWWKH VL[OHYHOHQKDQFHPHQWDSSOLHGWRKLVVHQWHQFH,QUHDFKLQJLWV ,Q8QLWHG6WDWHVY&DUWHU)G  WK&LU  WKH FRQFOXVLRQWKHGLVWULFWFRXUWFRQVLGHUHGWKHIROORZLQJIDFWRUV 6HYHQWK &LUFXLW KHOG WKDW WKH GHIHQGDQWjV VHQWHQFH ZDV  WKHH[WUDRUGLQDU\SHUVLVWHQFHRIWKH'HIHQGDQWLQVHQGLQJ SURSHUO\ HQKDQFHG EDVHG XSRQ KLV LQWHQW WR FDUU\ RXW KLV HPDLODQGYRLFHPDLOPHVVDJHV   WKHFRQWLQXLQJXQGHUWRQH WKUHDWVZKHUHWKHGHIHQGDQWKDGLQKLVSRVVHVVLRQD&ROW RI WKUHDWHQLQJ DQG H[WUDRUGLQDULO\ DQJU\ ODQJXDJH LQ WKH VHPLDXWRPDWLFSLVWRODQGWKUHHORDGHGPDWFKLQJPDJD]LQHV PHVVDJHV   WKHWHPSRUDOSUR[LPLW\RIWKHSXUFKDVHRIWKH DWWKHWLPHRIKLVDUUHVW,GDW7KHFRXUWFRQFOXGHGWKDW ILUHDUPWRWKHPDNLQJRIWKHWKUHDWV   WKHVHSDUDWHSXUFKDVH WKH mIDFW WKDW >WKH GHIHQGDQW@ DFWXDOO\ RZQHG DQG FDUULHG RIWKHDPPXQLWLRQ DQG  WKHIDFWWKDWWKHILUHDUPFRXOGEH ILUHDUPV VKRZV DQ HDV\ DELOLW\ WR FDUU\ RXW KLV WKUHDWHQHG ORDGHGZLWKLQDPDWWHURIVHFRQGV7KHFRXUWDOVRUHFRJQL]HG YLROHQFHPDNLQJKLVWKUHDWVPRUHWKDQPHUHSXIIHU\l,GDW WKDW D  FDOLEHU SLVWRO LV XVXDOO\ SXUFKDVHG IRU  FLWDWLRQV RPLWWHG   ,Q DGGLWLRQ WKH FRXUW IRXQG WKH mFRQFHDOPHQWlDQGmSHUVRQDOSURWHFWLRQl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

,,67$1'$5'2)5(9,(: ZRXOGDFWXDOO\GRVR8QLWHG6WDWHVY*DU\)G  WK&LU   KROGLQJWKDWDQ\DFWVWKDWHYLGHQFH ,QUHYLHZLQJFKDOOHQJHVWRVHQWHQFHVWKLV&RXUWUHYLHZVWKH DQ LQWHQW WR FDUU\ RXW WKH WKUHDWV PD\ IRUP WKH EDVLV IRU D GLVWULFWFRXUWjVOHJDOFRQFOXVLRQVUHJDUGLQJWKHDSSOLFDWLRQRI †$ E  HQKDQFHPHQW $FFRUGLQJO\HVVHQWLDOWRWKH WKH6HQWHQFLQJ*XLGHOLQHVGHQRYRDQGUHYLHZVWKHGLVWULFW GHWHUPLQDWLRQRIZKHWKHUWRDSSO\WKHVL[SRLQWHQKDQFHPHQW FRXUWjV IDFWXDO ILQGLQJV IRU FOHDU HUURU  8QLWHG 6WDWHV Y LV D ILQGLQJ WKDW D QH[XV H[LVWV EHWZHHQ WKH GHIHQGDQWjV 7D\ORU  )G   WK &LU    $ ILQGLQJ LV FRQGXFWDQGWKHWKUHDWVWKDWIRUPWKHEDVLVRIWKHLQGLFWPHQW FOHDUO\HUURQHRXVZKHQWKHGHFLVLRQmVWULNH>V@XVDVZURQJ 6HH8QLWHG6WDWHVY7D\ORU)G   WK&LU  ZLWKWKHIRUFHRIDILYHZHHNROGXQUHIULJHUDWHGGHDGILVKl FRQFOXGLQJWKDWWKHHVVHQWLDOLQTXLU\XQGHU†$ E  LV ,G TXRWLQJ 8QLWHG 6WDWHV Y 3HUU\  )G   WK mZKHWKHUWKHIDFWVRIWKHFDVHWDNHQDVDZKROHHVWDEOLVKD &LU   VXIILFLHQWO\ GLUHFW FRQQHFWLRQ EHWZHHQ WKH GHIHQGDQWjV    FRQGXFWDQGKLVWKUHDWl  ,,,',6&866,21 1HZHOO DUJXHV WKDW QRQH RI WKH IDFWRUV UHOLHG RQ E\ WKH 866*†$ E  SURYLGHV m,IWKHRIIHQVH>RIPDNLQJ GLVWULFWFRXUWWRDSSO\DVL[SRLQWHQKDQFHPHQWYLHZHGHLWKHU WKUHDWHQLQJ FRPPXQLFDWLRQV@ LQYROYHG DQ\ FRQGXFW DORQHRUFROOHFWLYHO\ GHPRQVWUDWHVDVXEVWDQWLDODQGGLUHFW HYLGHQFLQJ DQ LQWHQW WR FDUU\ RXW VXFK WKUHDW LQFUHDVH >WKH FRQQHFWLRQWRKLVRIIHQVH7KLV&RXUWKRZHYHUILQGVWKDW RIIHQVHOHYHO@E\OHYHOVl86 6(17(1&,1* *8,'(/,1(6 ERWKWKHSXUFKDVHRIWKHKDQGJXQLQFORVHWHPSRUDOSUR[LPLW\ † $ E    ,Q WKH &RPPHQWDU\ DFFRPSDQ\LQJ WKH WRWKHPDNLQJRIWKHWKUHDWVDQGWKHWRQHFRPPXQLFDWHGE\ †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†$ E  FPW Q  $OWKRXJK WKH GLVWULFW FRXUW GLG QRW H[SOLFLWO\ UHMHFW 1HZHOOjV

7KHSLYRWDOLQTXLU\ZKHQGHWHUPLQLQJWKHDSSURSULDWHQHVV HYLGHQFH SUHVHQWHG LQ VXSSRUW RI KLV FRQWHQWLRQ WKDW KH SXUFKDVHG WKH

RI D † $ E   HQKDQFHPHQW LV ZKHWKHU WKH GHIHQGDQW KDQGJXQ VROHO\ IRU XVH DW WDUJHW SUDFWLFH LW GLG VR DW OHDVW LPSOLFLWO\ ZKHQ

LQWHQGHG WR FDUU\ RXW WKH WKUHDW DQG WKH OLNHOLKRRG WKDW KH LW UHOLHG RQ WKH SXUFKDVH RI WKH KDQGJXQ LQ VXSSRUW RI WKH VL[OHYHO HQKDQFHPHQW