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$SSHOODQW    1R Y  !  1$1&< s2 5(%0$11  'HIHQGDQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW*UHHQHYLOOH 1R n7KRPDV*+XOO'LVWULFWsXGJH $UJXHG 'HFHPEHU 'HFLGHGDQG)LOHG 0DUFK %HIRUH 0(55,77DQG'$8*+75(<&LUFXLWsXGJHV 5866(//'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 'DQ56PLWK$66,67$1781,7('67$7(6 $77251(<sRKQVRQ&LW\7HQQHVVHHIRU$SSHOODQW1LNNL & 3LHUFH )('(5$/ '()(1'(5 6(59,&(6 2)

7KH +RQRUDEOH 7KRPDV % 5XVVHOO 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY5HEPDQQ 1R

($67(51 7(11(66(( *UHHQHYLOOH 7HQQHVVHH IRU $SSHOOHH  21 %5,()   'DQ 5 6PLWK $66,67$17 81,7('67$7(6$77251(<sRKQVRQ&LW\7HQQHVVHH IRU $SSHOODQW  1LNNL & 3LHUFH )('(5$/ '()(1'(5 6(59,&(6 2) ($67(51 7(11(66(( *UHHQHYLOOH 7HQQHVVHH 'DYLG ) 1HVV )('(5$/ '()(1'(5j6 2) 0217$1$*UHDW)DOOV0RQWDQDIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 0(55,77 &LUFXLW sXGJH  7KH TXHVWLRQ EHIRUH XV LV ZKHWKHUWKHJRYHUQPHQWPD\FRQYHUWDGHIHQGDQWjVSOHDRI JXLOW\ WR RQO\ WKH GLVWULEXWLRQ RI WK RI DQ RXQFH RI KHURLQLQWRDKRPLFLGHFDVHE\DVVHUWLQJWKDWWKHGHIHQGDQWjV KXVEDQGGLHGIURPDQRYHUGRVHRIKHURLQVKHVHQWKLP:H FRQFOXGHWKDWWKHGLVWULFWFRXUWZDVFRUUHFWLQVHQWHQFLQJWKH GHIHQGDQW WR  PRQWKV DQG UHMHFWLQJ WKH JRYHUQPHQWjV SURSRVHGVHQWHQFHRI\HDUVIRUKRPLFLGH , 1DQF\sR5HEPDQQWKHGHIHQGDQWLQWKLVFDVHSOHGJXLOW\ WRGLVWULEXWLRQRIKHURLQDVFKHGXOH,FRQWUROOHGVXEVWDQFHLQ YLRODWLRQRI86&† D DQG E  & 7KHDJUHHG IDFWXDOEDVLVLQFRUSRUDWHGLQWRWKHSOHDDJUHHPHQWHVWDEOLVKHG WKDWRQ)HEUXDU\ VKHPDLOHGDOHWWHUFRQWDLQLQJ

 6XEVHFWLRQ D RI †  VHWV RXW WKH EDVLF FULPH RI GLVWULEXWLRQ RI D FRQWUROOHG VXEVWDQFH m>,@W VKDOO EH XQODZIXO IRU DQ\ SHUVRQ NQRZLQJO\ RU LQWHQWLRQDOO\ WRGLVWULEXWHRU SRVVHVV ZLWK LQWHQW WRGLVWULEXWHD FRQWUROOHG VXEVWDQFHl  86& †  D   6XEVHFWLRQ E VHWV RXW WKH SHQDOWLHV IRU D YLRODWLRQ RI VXEVHFWLRQ D  ZLWK VXESDUDJUDSK & SURYLGLQJ LQ UHOHYDQW SDUW WKDW m>L@Q WKH FDVH RI D FRQWUROOHG VXEVWDQFH LQ VFKHGXOH ,VXFK SHUVRQ VKDOO EH VHQWHQFHG WR D WHUP RI LPSULVRQPHQW RI QRW PRUH WKDQ  \HDUV DQG LI GHDWK RU VHULRXV ERGLO\ LQMXU\ UHVXOWV IRUP WKH XVH RI VXFK VXEVWDQFH VKDOO EH VHQWHQFHG WR D WHUP RI LPSULVRQPHQW RI QRW OHVV WKDQ WZHQW\ \HDUV RU PRUH WKDQ OLIHl ,G †  E  &  1R 8QLWHG6WDWHVY5HEPDQQ 

JUDPV RURXQFHV RIEODFNWDUKHURLQIURP&DOLIRUQLD WRKHUHVWUDQJHGKXVEDQG/HRQDUG5HEPDQQLQsRKQVRQ&LW\ 7HQQHVVHH  $W VHQWHQFLQJ WKH JRYHUQPHQW LQWURGXFHG HYLGHQFHLQWHQGHGWRVKRZWKDW0U5HEPDQQjVVXEVHTXHQW GHDWKUHVXOWHGIURPWKHGHIHQGDQWjVGLVWULEXWLRQRIWKHKHURLQ $SSO\LQJWKHSHQDOW\SURYLVLRQVVHWIRUWKLQ† E  & RI WKH VWDWXWH DQG 866* † ' D   WKH GLVWULFW FRXUW IRXQG E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW 0U 5HEPDQQjVGHDWKUHVXOWHGIURPWKHGLVWULEXWLRQDQGVHQWHQFHG WKH GHIHQGDQW WR   PRQWKV LPSULVRQPHQW  2Q DSSHDO D SDQHO RI WKLV &RXUW KHOG WKDW XQGHU WKH 6XSUHPH &RXUWjV UHDVRQLQJ LQ WKH UHFHQW FDVHV RI sRQHV &DVWLOOR DQG $SSUHQGL WKHmLIGHDWKUHVXOWVlSURYLVLRQRIVXESDUDJUDSK E  &  RI WKH VWDWXWH LV QRW D PHUH VHQWHQFLQJ IDFWRU DSSOLFDEOH WR WKH FRUH FULPH RI GLVWULEXWLRQ VHW IRUWK LQ † D EXWUDWKHUFRQVWLWXWHVDQHOHPHQWRIDVHSDUDWHFULPH GLVWULEXWLRQUHVXOWLQJLQGHDWK WKDWPXVWEHSURYHGEH\RQG DUHDVRQDEOHGRXEW8QLWHG6WDWHVY5HEPDQQ)G  WK&LU %HFDXVHWKHGHIHQGDQWLQWKLVFDVH KDG EHHQ VHQWHQFHG EH\RQG WKH \HDU PD[LPXP WHUP RI LPSULVRQPHQWDOORZDEOHXQGHU† E  & EDVHGVROHO\RQ WKHWULDOMXGJHjVILQGLQJE\DSUHSRQGHUDQFHRIWKHHYLGHQFH WKDW GHDWK UHVXOWHG IURP WKH FULPH WKLV &RXUW YDFDWHG WKH VHQWHQFH DQG UHPDQGHG WKH PDWWHU mIRU D GHWHUPLQDWLRQ ZKHWKHU /HRQDUG 5HEPDQQjV GHDWK ZDV FDXVHG E\ WKH GLVWULEXWLRQRIKHURLQEH\RQGDUHDVRQDEOHGRXEWl,GDW 2Q UHPDQG WKH JRYHUQPHQW ZLWKGUHZ LWV UHTXHVW IRU D GHDWKHQKDQFHPHQWEDVHGRQ† E  & ,WFRQWLQXHG KRZHYHUWRSXUVXHDGHDWKHQKDQFHPHQWSXUVXDQWWR866* †' D  DUJXLQJWKDWWKHGLVWULFWFRXUWFRXOGVHQWHQFH WKHGHIHQGDQWWRWKHPD[LPXPDOORZDEOHVHQWHQFHRI\HDUV LQ SULVRQ EDVHG RQ WKH GHWHUPLQDWLRQ PDGH DW WKH LQLWLDO

 sRQHV Y 8QLWHG 6WDWHV  86   

 &DVWLOOR Y 8QLWHG 6WDWHV  86   

 $SSUHQGL Y 1HZ sHUVH\  86     8QLWHG6WDWHVY5HEPDQQ 1R 1R 8QLWHG6WDWHVY5HEPDQQ

VHQWHQFLQJ KHDULQJ XVLQJ WKH ORZHU SUHSRQGHUDQFH RI WKH 0F0LOODQsRQHVDQG+DUULVDORQHMXVWLI\WKHGLVWULFWFRXUWjV HYLGHQFHVWDQGDUG7KHGLVWULFWFRXUWGLVDJUHHGDQGZLWKD DQGWKLVFRXUWjVUHIXVDOWRILQGWKHGHIHQGDQWJXLOW\RIDQG YLHZ WR FDUHIXOO\ IROORZLQJ WKLV &RXUWjV PDQGDWH KHOG D VHQWHQFHKHUIRUDKRPLFLGHXQGHUWKHJXLVHRIDJXLOW\SOHDWR EHQFK WULDO QDUURZO\ OLPLWHG WR WKH TXHVWLRQ ZKHWKHU 0U WKHGLVWULEXWLRQRIDYHU\VPDOOTXDQWLW\RIGUXJV)LQDOO\ 5HEPDQQjVGHDWKUHVXOWHGIURPWKHGLVWULEXWLRQRIWKHKHURLQ 5LQJY$UL]RQD866&W  KDV $IWHUKHDULQJDGGLWLRQDOHYLGHQFHRQWKHPDWWHUWKHGLVWULFW FOHDUO\UHHPSKDVL]HGWKHQHFHVVLW\IRUFRXUWVWRGLVWLQJXLVK FRXUWIRXQGWKDWWKHJRYHUQPHQWKDGIDLOHGWRSURYHEH\RQG VKDUSO\ EHWZHHQ HOHPHQWV RI D FULPH UHTXLULQJ WKH IXOO DUHDVRQDEOHGRXEWWKDW0U5HEPDQQjVGHDWKUHVXOWHGIURP SDQRSO\RIGXHSURFHVVSURWHFWLRQVDQGPHUHVHQWHQFLQJIDFWV WKHGLVWULEXWLRQ WKDWDYRLGWKHULJRUVRIGXHSURFHVV,QOLJKWRI5LQJFRXUWV ZKLFKKDYHDOORZHGWKHWZRWREHPHUJHGPXVWUHFRQVLGHU 8SRQ UHVHQWHQFLQJ WKH GLVWULFW FRXUW UHMHFWHG WKH WKHLUSRVLWLRQ JRYHUQPHQWjVFRQWLQXHGDUJXPHQWWKDWWKHmLIGHDWKUHVXOWVl SURYLVLRQ RI 866* † ' D   FRXOG QHYHUWKHOHVV EH )RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKHGLVWULFWFRXUW DSSOLHG XQGHU WKH ORZHU SUHSRQGHUDQFH RI WKH HYLGHQFH LV$)),50(' VWDQGDUG DSSOLFDEOH WR VHQWHQFLQJ IDFWRUV WR HQKDQFH WKH GHIHQGDQWjVVHQWHQFHXSWRWKH\HDUVWDWXWRU\PD[LPXP XQGHU †  E  &   7KH GLVWULFW FRXUW IRXQG WKH JRYHUQPHQWjVSRVLWLRQWREHmFOHDUO\FRQWUDU\WRWKHPDQGDWH VHWRXWE\WKH6L[WK&LUFXLWLQWKLVFDVHlEHFDXVHm>W@KH6L[WK &LUFXLW IRXQG LQ 5HEPDQQjV FDVH RQ DSSHDO WKDW µLI GHDWK UHVXOWVj LV DQ HOHPHQW RI WKH RIIHQVH DQG QRW D VHQWHQFLQJ HQKDQFHPHQWWKDWFRXOGEHVKRZQE\DSUHSRQGHUDQFHRIWKH HYLGHQFHl 'LVW&W2UGHU$SUs$DW %DVHG RQDWRWDORIIHQVHOHYHORIDQGDFULPLQDOKLVWRU\FDWHJRU\ RI 9, WKH GLVWULFW FRXUW GHWHUPLQHG WKDW WKH GHIHQGDQWjV JXLGHOLQHUDQJHZDVPRQWKV,QOLJKWRIWKHIDFWWKDW VKHKDGDOUHDG\VHUYHGPRUHWKDQPRQWKVLQSULVRQWKH GLVWULFWFRXUWVHQWHQFHGWKHGHIHQGDQWWRWLPHVHUYHG7KH JRYHUQPHQWQRZDSSHDOVFRQWHQGLQJWKDWWKHGLVWULFWFRXUW HUUHGLQUHIXVLQJWRFRQVLGHUWKHIDFWRIGHDWKUHVXOWLQJDVD VHQWHQFLQJIDFWRUDQGDSSO\WKHmHQKDQFHPHQWlSXUVXDQWWR †' D  RIWKH*XLGHOLQHV ,, 6HFWLRQ' D GLUHFWVWKHVHQWHQFLQJFRXUWWRDSSO\WKH JUHDWHVWRIWKUHHEDVHRIIHQVHOHYHOVGHSHQGLQJRQWKHIDFWV HVWDEOLVKHGE\WKHmRIIHQVHRIFRQYLFWLRQl    LI WKH GHIHQGDQW LV FRQYLFWHG XQGHU > 86& † E  & @DQGWKHRIIHQVHRIFRQYLFWLRQHVWDEOLVKHV  8QLWHG6WDWHVY5HEPDQQ 1R 1R 8QLWHG6WDWHVY5HEPDQQ 

FRQYLFWHGl8QLWHG6WDWHVY3UHVVOHU)GQ WKDWGHDWKRUVHULRXVERGLO\LQMXU\UHVXOWHGIURPWKHXVH G&LU 8QGHUWKLVUHDVRQLQJDQGRXUKROGLQJWKDWWKH RIWKHVXEVWDQFHDQGWKDWWKHGHIHQGDQWFRPPLWWHGWKH mLIGHDWKUHVXOWVlSURYLVLRQLQ† E  & LVDQHOHPHQWD RIIHQVHDIWHURQHRUPRUHSULRUFRQYLFWLRQVIRUDVLPLODU GHIHQGDQW FRQYLFWHG RI D YLRODWLRQ RI †  D  DEVHQW D RIIHQVH  RU    LI WKH GHIHQGDQW LV FRQYLFWHG XQGHU ILQGLQJEH\RQGDUHDVRQDEOHGRXEWWKDWGHDWKUHVXOWHGIURP >86&† E  & @DQGWKHRIIHQVHRIFRQYLFWLRQ WKH GLVWULEXWLRQ ZRXOG QRW EH HOLJLEOH IRU WKH HQKDQFHPHQW HVWDEOLVKHVWKDWGHDWKRUVHULRXVERGLO\LQMXU\ UHVXOWHG XQGHU†'RIWKH*XLGHOLQHV6HHLG:HQRWHWKDWXSRQ IURPWKHXVHRI WKHVXEVWDQFH RU  WKHRIIHQVHOHYHO TXHVWLRQLQJ DW RUDO DUJXPHQW LQ WKLV FDVH FRXQVHO IRU WKH VSHFLILHG LQ WKH 'UXJ 4XDQWLW\ 7DEOH VHW IRUWK LQ JRYHUQPHQW FRXOG QRW DUWLFXODWH DQ\ DXWKRULW\ IRU WKH VXEVHFWLRQ F EHORZ (PSKDVLVDGGHG SURSRVLWLRQ WKDW WKH WHUP mRIIHQVH RI FRQYLFWLRQl PHDQV DQ\WKLQJRWKHUWKDQLWVSODLQDQGOLWHUDOPHDQLQJ 866* † ' D   $FFRUGLQJ WR WKH JRYHUQPHQW WKH GLVWULFWMXGJHVKRXOGKDYHDSSOLHGVXEVHFWLRQ  WRILQGE\D 7KHUHLVQRGLVSXWHWKDWLQWKHSUHVHQWFDVHWKHVWLSXODWHG SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW 0U 5HEPDQQjV GHDWK IDFWVXQGHUO\LQJWKHGHIHQGDQWjVSOHDRIJXLOW\WRDFKDUJHRI UHVXOWHG IURP WKH GLVWULEXWLRQ LQ RUGHU WR HQKDQFH WKH YLRODWLQJ †  D  DQG E  &  HVWDEOLVK RQO\ WKDW VKH GHIHQGDQWjV VHQWHQFH XS WR EXW QRW H[FHHGLQJ WKH \HDU GLVWULEXWHGDSDUWLFXODUDPRXQWRIKHURLQ WKH\GRQRWHVWDEOLVK PD[LPXP VHQWHQFH RWKHUZLVH DSSOLFDEOH IRU WKH RIIHQVH WKDWGHDWKUHVXOWHGIURPWKHXVHRIWKHKHURLQ)XUWKHUWKH FKDUJHGDQGWRZKLFKWKHGHIHQGDQWSOHGJXLOW\ GLVWULFWFRXUWH[SUHVVO\FRQFOXGHGWKDWWKHJRYHUQPHQWKDG IDLOHG WR SURYH EH\RQG D UHDVRQDEOH GRXEW WKDW 0U :H DJUHH ZLWK WKH GLVWULFW FRXUW WKDW WKH JRYHUQPHQWjV 5HEPDQQjVGHDWKUHVXOWHGIURPWKHGLVWULEXWLRQ7KXVE\WKH SRVLWLRQLVmFOHDUO\FRQWUDU\lWRRXUSUHYLRXVPDQGDWH7KH H[SUHVVmRIIHQVHRIFRQYLFWLRQlODQJXDJHRIWKH*XLGHOLQHV mLIGHDWKUHVXOWVlSURYLVLRQRI86&† E  & LVDQ WKH GHIHQGDQW LV QRW HOLJLEOH IRU WKH HQKDQFHPHQW XQGHU HOHPHQWWKDWPXVWEHSURYHQEH\RQGDUHDVRQDEOHGRXEW LWLV †' D  $VDUHVXOWWKHGLVWULFWFRXUWGLGQRWHUULQ QRWDVHQWHQFLQJIDFWRUWREHGHWHUPLQHGE\WKHVHQWHQFLQJ UHIXVLQJWRDSSO\LW MXGJH E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH  'HVSLWH WKLV UXOLQJWKHJRYHUQPHQWLQWKLVFDVHSXUVXHVWKHGHDWKUHVXOWLQJ 7RKROGRWKHUZLVHZRXOGDOORZWKHVHQWHQFHWREHLQFUHDVHG HQKDQFHPHQW DV mUHOHYDQW FRQGXFWl XQGHU WKH *XLGHOLQHV VHYHQ IROG o IURP  PRQWKV WR  \HDUV o E\ XVLQJ DV D DSSURSULDWHO\ FRQVLGHUHG E\ WKH WULDO FRXUW MXGJH XQGHU D VHQWHQFLQJHQKDQFHPHQWWKHHOHPHQWRIDPRUHVHULRXVFULPH SUHSRQGHUDQFHRIWKHHYLGHQFHVWDQGDUG6HH8QLWHG6WDWHVY 6XFKDVHQWHQFHUDLVHVWKHGXHSURFHVVSUREOHPUHIHUUHGWR :DWWV 866&W    UHDIILUPLQJ FRORUIXOO\ LQ 0F0LOODQ Y 3HQQV\OYDQLD  86    JHQHUDOSULQFLSOHWKDWIDFWVHYHQHOHPHQWVRIDPRUHVHULRXV   DVWKHVHQWHQFLQJHQKDQFHPHQWmWDLOZKLFKZDJVWKH FULPHQRWSURYHQEH\RQGDUHDVRQDEOHGRXEWPD\EHSURYHQ GRJRIWKHVXEVWDQWLYHRIIHQVHl UHIHUUHGWRLQsRQHV86 DWVHQWHQFLQJE\DSUHSRQGHUDQFHRIWKHHYLGHQFHWRHQKDQFH DW  DV D VHQWHQFLQJ HQKDQFHPHQW WKH 6XSUHPH &RXUW DGHIHQGDQWjVVHQWHQFHZLWKLQWKHSUHVFULEHGVWDWXWRU\UDQJH GRXEWHGWKDW&RQJUHVVZRXOGKDYHLQWHQGHGWREHFRQWLQJHQW mEHFDXVHRIWKHPDQQHULQZKLFK>WKHGHIHQGDQW@FRPPLWWHG RQ MXGLFLDO IDFWILQGLQJ ZKHUH mVWHHSO\ KLJKHU SHQDOWLHVl WKHFULPHRIFRQYLFWLRQl  FLWLQJ:LWWHY8QLWHG6WDWHV UHVXOWHGIURPWKHSUHVHQFHRIDSDUWLFXODUIDFW DQGUHIHUUHGWR 86        VHH DOVR 866* † % LQ+DUULVY8QLWHG6WDWHV6&W  DVD FRPPHQWDU\EDFNJjG m&RQGXFWWKDWLVQRWIRUPDOO\FKDUJHG VHQWHQFLQJ IDFWRU WKDW VWHHSO\ mDOWHUHG WKH GHIHQGDQWjV RULVQRWDQHOHPHQWRIWKHRIIHQVHRIFRQYLFWLRQPD\HQWHU SXQLVKPHQW LQ D PDQQHU QRW XVXDOO\ DVVRFLDWHG ZLWK LQWRWKHGHWHUPLQDWLRQRIWKHDSSOLFDEOHJXLGHOLQHVHQWHQFLQJ VHQWHQFLQJ IDFWRUVl  7KH GXH SURFHVV DGPRQLWLRQV LQ UDQJHl $FFRUGLQJWRWKHJRYHUQPHQWHYHQLIWKHIDFWRI  8QLWHG6WDWHVY5HEPDQQ 1R 1R 8QLWHG6WDWHVY5HEPDQQ 

GHDWK UHVXOWLQJ LV QRW SURYHQ DV DQ HOHPHQW VXEMHFWLQJ WKH RIIHQVHRIFRQYLFWLRQXQGHUWKHVWDWXWH$VDUHVXOWXQGHURXU GHIHQGDQWWRD\HDUPLQLPXPLWPD\\HWVHUYHDVWKHEDVLV SUHYLRXVKROGLQJLQWKLVFDVHWKHGHDWKUHVXOWLQJHQKDQFHPHQW IRUDQmHQKDQFHPHQWlIRUUHOHYDQWFRQGXFWXSWRWKH\HDU DSSOLHVRQO\ZKHQWKHHOHPHQWDOIDFWVVXSSRUWLQJWKHmRIIHQVH PD[LPXP  ,Q HVVHQFH WKH JRYHUQPHQW VXJJHVWV WKDW RIFRQYLFWLRQlHVWDEOLVKEH\RQGDUHDVRQDEOHGRXEWWKDWGHDWK EHFDXVH WKH UHVXOWLQJ VHQWHQFH PXVW EH IRUFHG ZLWKLQ WKH UHVXOWHGIURPWKHXVHRIWKHFRQWUROOHGVXEVWDQFH PD[LPXPVWDWXWRU\UDQJHXQGHU$SSUHQGLWKHIDFWRIGHDWK UHVXOWLQJ VLPSO\ FKDQJHV IURP DQ HOHPHQW XQGHU 6HFWLRQ' D SURYLGHVWKDWWKHEDVHRIIHQVHOHYHOLV †  E  &  WULJJHULQJ WKH PLQLPXP VHQWHQFH WR D mLI WKH GHIHQGDQW LV FRQYLFWHG XQGHU > 86& VHQWHQFLQJ IDFWRU XQGHU 866* † '   %XW D FDUHIXO † E  & @DQGWKHRIIHQVHRIFRQYLFWLRQHVWDEOLVKHVWKDW UHDGLQJ RI WKH H[SUHVV ODQJXDJH RI † ' D  DORQJ ZLWK GHDWK RU VHULRXV ERGLO\ LQMXU\ UHVXOWHG IURP WKH XVH RI WKH RWKHUSURYLVLRQVDQGH[SODQDWLRQVFRQWDLQHGLQWKH*XLGHOLQHV VXEVWDQFHl  866* † ' D   HPSKDVLV DGGHG  0DQXDO FRQYLQFHV XV WKDW WKH GHDWKUHVXOWLQJ VHQWHQFLQJ $OWKRXJK WKH WHUP mRIIHQVH RI FRQYLFWLRQl LV QRW GHILQHG HQKDQFHPHQW VHW IRUWK LQ WKDW SURYLVLRQ LV QRW EDVHG RQ XQGHU WKH GHILQLWLRQV VHFWLRQ RI WKH *XLGHOLQHV RWKHU UHOHYDQWRIIHQVHFRQGXFWWREHGHWHUPLQHGE\DSUHSRQGHUDQFH SURYLVLRQVPDNHFOHDUWKDWWKHWHUPmRIIHQVHRIFRQYLFWLRQl RIWKHHYLGHQFHEXWUDWKHULVWLHGH[SUHVVO\WRWKHVXEVWDQWLYH GHVFULEHVRQO\WKHSUHFLVHFRQGXFWFRQVWLWXWLQJWKHFULPHIRU ZKLFKWKHGHIHQGDQWZDVFRQYLFWHGDQGGRHVQRWLQFOXGHQRQ RIIHQVHUHOHYDQWFRQGXFW6HHHJ866*†% D  DV  WKHILUVWVWHSLQDSSO\LQJWKHEDVLFUXOHVIRUGHWHUPLQLQJWKH $ EDVH OHYHO RI  FRUUHVSRQGV WR   PRQWKV RU URXJKO\  WR  \HDUV  7KH JRYHUQPHQW DVVHUWV WKDW WKH DSSOLFDEOH JXLGHOLQH UDQJH JXLGHOLQHV DSSOLFDEOH WR WKH RIIHQVH FRQGXFW GLUHFWLQJ WKH IRU WKH GHIHQGDQW LV   PRQWKV OHYHO  OHVV  OHYHOV IRU DFFHSWDQFH FRXUWWRm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† * FRQYLFWHG LG†%DSSOLFDWLRQQRWH  N  LQGLFDWLQJWKDW mRIIHQVHRIFRQYLFWLRQlGRHVQRWLQFOXGHUHOHYDQWFRQGXFWE\  GHILQLQJ mRIIHQVHl DV mWKH RIIHQVH RI FRQYLFWLRQ DQG DOO 'HFLVLRQV IURP RWKHU FLUFXLWV XSKROGLQJ GHDWK UHVXOWLQJ HQKDQFHPHQWV XQGHU † ' GR VR E\ ORRNLQJ UHWURVSHFWLYHO\ DW WKH UHOHYDQWFRQGXFWXQGHU†%l 0RUHRYHUWKHFRPPHQWDU\ DFWXDO VHQWHQFH LPSRVHG 6HH HJ 8QLWHG 6WDWHV Y 5RGULJXH]  )G WR†'H[SODLQVWKDWWKHEDVHRIIHQVHOHYHOVVHWIRUWKLQ    WK &LU  FRQFOXGLQJ WKDW WKHUH ZDV QR $SSUHQGL WKDW VHFWLRQ DUH SURYLGHG E\ WKH VWDWXWH LWVHOI   m7KH EDVH HUURU XQGHU  86& †  E  & ZKHQ WKH HQKDQFHPHQW IRU UHVXOWLQJ RIIHQVHOHYHOVLQ†'DUHHLWKHUSURYLGHGGLUHFWO\E\WKH GHDWK ZDV IRXQG E\ RQO\ D SUHSRQGHUDQFH RI WKH HYLGHQFH EHFDXVH WKH $QWL'UXJ$EXVH$FWRI RUDUHSURSRUWLRQDOWRWKHOHYHOV WZHQW\\HDU VHQWHQFH LPSRVHG GLG QRW H[FHHG WKH PD[LPXP VHQWHQFH DXWKRUL]HG XQGHU †  E  & IRU D KHURLQ RIIHQVH ZLWKRXW UHIHUHQFH WR HVWDEOLVKHG E\ VWDWXWH    l  ,G † ' FRPPHQWDU\ mGHDWK RU VHULRXV ERGLO\ LQMXU\l 8QLWHG 6WDWHV Y 0F,QWRVK  )G EDFNJjG   WK &LU  ZKHUH WKH GLVWULFW FRXUW HQKDQFHG WKH GHIHQGDQWjV VHQWHQFH XQGHU †  E  $ DIWHU ILQGLQJ E\ D 7KLVLVWKHYLHZWDNHQLQDQRSLQLRQIURPWKH7KLUG&LUFXLW SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW mGHDWK RU VHULRXV ERGLO\ LQMXU\l KDG LQ ZKLFK sXGJH %HFNHU FDUHIXOO\ H[DPLQHV WKH YDULRXV UHVXOWHG KROGLQJ WKDW $SSUHQGL GLG QRW DSSO\ EHFDXVH WKH GHIHQGDQW ZDV SURYLVLRQV RI WKH 6HQWHQFLQJ *XLGHOLQHV DQG FRQFOXGHV LQ VHQWHQFHG WR WZHQW\ \HDUV LPSULVRQPHQW ZKLFK LV WKH DXWKRUL]HG PD[LPXP VHQWHQFH XQGHU †  E  & ZLWKRXW DQ\ HQKDQFHPHQW GLFWXPWKDWmVHYHUDOIDFWRUVOHDGXVWREHOLHYHWKDWWKHSKUDVH 8QLWHG 6WDWHV Y &DWKH\  )G   WK &LU  XSKROGLQJ >mRIIHQVHRIFRQYLFWLRQl@LQFOXGHVRQO\WKHIDFWVXQGHUO\LQJ WZHQW\\HDU VHQWHQFH XQGHU †  E  & XSRQ MXGJHjV ILQGLQJ WKDW WKH VSHFLILF FULPLQDO RIIHQVH IRU ZKLFK WKH GHIHQGDQW ZDV GHDWK UHVXOWHG IURP GLVWULEXWLRQ RI KHURLQ