5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   %DQQHUPDQY6Q\GHU 1R  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS 21%5,() &KHU\Os6WXUP&KDGGV)RUG3HQQV\OYDQLD IRU$SSHOODQWsRKQ3DWULFN*UDQW$66,67$1781,7(' 67$7(6$77251(</H[LQJWRQ.HQWXFN\IRU$SSHOOHH 81,7('67$7(6&28572)$33($/6 BBBBBBBBBBBBBBBBB )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB

)5$1./<1 %$11(50$1 ; 52*(56&LUFXLWsXGJH3HWLWLRQHUZDVVHQWHQFHGE\D 3HWLWLRQHU$SSHOODQW  8QLWHG 6WDWHV 'LVWULFW &RXUW LQ 9LUJLQLD WR  PRQWKV  LPSULVRQPHQW IRU YLRODWLQJ IHGHUDO GUXJ ODZV  2Q GLUHFW  1R  DSSHDOWKH)RXUWK&LUFXLWDIILUPHGKLVFRQYLFWLRQ+HODWHU Y  ILOHGLQWKHVHQWHQFLQJFRXUWDPRWLRQXQGHU86&† ! WRYDFDWHVHWDVLGHRUFRUUHFWKLVVHQWHQFH7KDWPRWLRQZDV  GHQLHGDVXQWLPHO\3HWLWLRQHUDSSHDOHGWRWKH)RXUWK&LUFXLW *(25*( ( 61<'(5:DUGHQ  5HVSRQGHQW$SSHOOHH  WKDWFRXUWJUDQWHGDFHUWLILFDWHRIDSSHDODELOLW\DQGUHPDQGHG ILQGLQJ WKDW WKH PRWLRQ ZDV WLPHO\  2Q UHPDQG WKH 1 VHQWHQFLQJ FRXUW DJDLQ GHQLHG KLV †  PRWLRQ  +H $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW VXEVHTXHQWO\ ILOHG D SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/RQGRQ SXUVXDQWWR86&†LQWKH86'LVWULFW&RXUWIRUWKH 1R nsHQQLIHU%&RIIPDQ'LVWULFWsXGJH (DVWHUQ 'LVWULFW RI .HQWXFN\ WKH GLVWULFW ZKHUH KH LV LQFDUFHUDWHG  7KH GLVWULFW FRXUW GHQLHG WKH SHWLWLRQ DQG $UJXHG 0DUFK JUDQWHGUHVSRQGHQWjVPRWLRQWRGLVPLVV3HWLWLRQHUDSSHDOV WKHGLVWULFWFRXUWjVGHFLVLRQ:H$)),50 'HFLGHGDQG)LOHG $SULO 7KHVWDQGDUGIRUUHYLHZRIDGHQLDORIDSHWLWLRQRIKDEHDV %HIRUH 0$57,1&KLHI&LUFXLWsXGJH 52*(56&LUFXLW FRUSXVLVGHQRYR&KDUOHVY&KDQGOHU)G sXGJH ('081'6'LVWULFWsXGJH WK&LU  BBBBBBBBBBBBBBBBB 3HWLWLRQHUILOHG D SHWLWLRQIRUKDEHDVFRUSXVSXUVXDQWWR †ZLWKWKHGLVWULFWFRXUW+HFODLPHGWKDWDUWLFOHRI &2816(/ WKH ,QWHUQDWLRQDO &RYHQDQW RQ &LYLO DQG 3ROLWLFDO 5LJKWV DGRSWHGE\WKH81*HQHUDO$VVHPEO\'HF   $5*8(' &KHU\Os6WXUP&KDGGV)RUG3HQQV\OYDQLDIRU 8176  ,&&35  ZDV YLRODWHG EHFDXVH KH ZDV QRW $SSHOODQW  sRKQ 3DWULFN *UDQW $66,67$17 81,7(' SURYLGHGDIRUXPWRPDNHKLVDUJXPHQWXQGHU$SSUHQGLY 67$7(6$77251(</H[LQJWRQ.HQWXFN\IRU$SSHOOHH

7KH +RQRUDEOH 1DQF\ * (GPXQGV 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

 1R  %DQQHUPDQY6Q\GHU   %DQQHUPDQY6Q\GHU 1R 

1HZsHUVH\86  7KH6XSUHPH&RXUWLQ :/  WK&LU6HSW 3HUNLQVKHOGWKDWD $SSUHQGLKHOGWKDWm>R@WKHUWKDQWKHIDFWRIDSULRUFRQYLFWLRQ †SHWLWLRQFRXOGQRWEHEDVHGRQDUHWURDFWLYHDSSOLFDWLRQ DQ\ IDFW WKDW LQFUHDVHV WKH SHQDOW\ IRU D FULPH EH\RQG WKH RI$SSUHQGL SUHVFULEHGVWDWXWRU\PD[LPXPPXVWEHVXEPLWWHGWRDMXU\ DQG SURYHG EH\RQG D UHDVRQDEOH GRXEWl  ,G DW   7KHVDYLQJVFODXVHPD\RQO\EHDSSOLHGZKHQWKHSHWLWLRQHU 3HWLWLRQHUjV $SSUHQGL DUJXPHQW LV WKDW WKH GLVWULFW FRXUWj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jV GHWHQWLRQ SXUVXDQW WR †  RQO\ LI WKH IHGHUDOGHWHQWLRQEHEURXJKWXQGHU†UDWKHUWKDQ† SHWLWLRQHUFDQVKRZWKDWmWKHUHPHG\E\PRWLRQ>SXUVXDQWWR DEVHQW D FODLP RI DFWXDO LQQRFHQFH  7KH ,&&35 GRHV QRW  86& † @ LV LQDGHTXDWH RU LQHIIHFWLYH WR WHVW WKH SURYLGHDQLQGHSHQGHQWEDVLVIRUFKDOOHQJLQJFXVWRG\XQGHU OHJDOLW\ RI KLV GHWHQWLRQl  86& †  &KDUOHV  †  EHFDXVH LWV SURYLVLRQV DUH QRW VHOIH[HFXWLQJ DQG )G DW   7KLV SKUDVH LV NQRZQ DV WKH VDYLQJV FODXVH WKHUHIRUH QRW MXGLFLDOO\ HQIRUFHDEOH mODZl RI WKH 8QLWHG &KDUOHV)GDW 6WDWHV  6HH %XHOO Y 0LWFKHOO  )G   WK &LU   86 6HQDWH 5HVROXWLRQ RI $GYLFH DQG &RQVHQW WR 3HWLWLRQHUjVFKDOOHQJHZDVWRWKHOHJDOLW\RIKLVGHWHQWLRQ 5DWLILFDWLRQ RI WKH ,QWHUQDWLRQDO &RYHQDQW RQ &LYLO DQG +HDOOHJHGWKDWKLVUHPHG\E\ZD\RI†ZDVLQDGHTXDWH 3ROLWLFDO5LJKWV&RQJ5HF    8QLWHG RULQHIIHFWLYHWRWHVWWKHOHJDOLW\RIKLVGHWHQWLRQEHFDXVHWKH 6WDWHVGHFODUDWLRQWKDW$UWLFOHVWKURXJKRI,&&35DUHQRW ,&&35KDGEHHQYLRODWHGDQGEHFDXVHRQO\†SURYLGHV VHOIH[HFXWLQJ  &XUWLV $ %UDGOH\  sDFN / *ROGVPLWK DUHPHG\IRUWUHDW\YLRODWLRQV7KHGLVWULFWFRXUWUHMHFWHG 7UHDWLHV+XPDQ5LJKWVDQG&RQGLWLRQDO&RQVHQW 8 HDFKRISHWLWLRQHUjVKDEHDVDUJXPHQWV7KHFRXUWIRXQGWKDW 3 / 5 '    GLVFXVVLQJOHJDOLW\RIQRQ WKH ,&&35 GLG QRW HQWLWOH SHWLWLRQHU WR EULQJ DQ DFWLRQ VHOIH[HFXWLRQ GHFODUDWLRQV   :KLOH LW LV WUXH WKDW †  SXUVXDQW WR †   ,Q DGGLWLRQ WKH FRXUW GHQLHG DOO RI XQOLNH†H[SUHVVO\LQFOXGHVYLRODWLRQRImWUHDWLHVRIWKH SHWLWLRQHUjV$SSUHQGLFODLPVEDVHGRQWKHUDWLRQDOHDQGOHJDO 8QLWHG6WDWHVlDVDEDVLVIRUFKDOOHQJLQJFXVWRG\LWLVFOHDU DXWKRULWLHVVHWIRUWKLQ3HUNLQVY7KRPV1R WKDWWKHJURXQGVIRUUHOLHIXQGHU†DUHWKHHTXLYDOHQWRI WKRVHXQGHUJHQHUDOIHGHUDOKDEHDVFRUSXVVWDWXWHVWKDWUHIHU WRmWKH&RQVWLWXWLRQRUODZVRUWUHDWLHVRIWKH8QLWHG6WDWHVl 6HH 'DYLV Y 8QLWHG 6WDWHV  86       ,W  79 LFOH  RI WKH ,&&35 SURYLGHV m,I VXEVHTXHQW WR WKH IROORZVWKDWWKHUHIHUHQFHWRmWUHDWLHVRIWKH8QLWHG6WDWHVlLQ FRPPLVVLRQ RI WKH RIIHQVH SURYLVLRQ LV PDGH E\ ODZ IRU WKH LPSRVLWLRQ †FDQQRWEHFRQVWUXHGDVDQLPSOHPHQWDWLRQRIQRQVHOI RI D OLJKWHU SHQDOW\ WKH RIIHQGHU VKDOO EHQHILW WKHUHE\l 8176   H[HFXWLQJSURYLVLRQVRIWUHDWLHVVRDVWRUHQGHUWKHPMXGLFLDOO\  6HFWLRQ  SURYLGHV LQ SDUW m7KH ZULW RI KDEHDV FRUSXV VKDOO QRW H[WHQG WR D SULVRQHU XQOHVV     +H LV LQ FXVWRG\ LQ YLRODWLRQ RI WKH &RQVWLWXWLRQ RU ODZV RU WUHDWLHV RI WKH 8QLWHG 6WDWHVl  86& †  F  1R  %DQQHUPDQY6Q\GHU 

HQIRUFHDEOHXQGHU†ZKHQWKH\DUHQRWHQIRUFHDEOHXQGHU † &21&/86,21 3HWLWLRQHUKDVQRWVHWIRUWKDQ\YDOLGDUJXPHQWVWRVXSSRUW KLVKDEHDVSHWLWLRQDQGWKHUHIRUHWKHGLVWULFWFRXUWMXGJPHQW LV$)),50('

 :H QRWH WKDW WKH )RXUWK DQG 1LQWK &LUFXLWV DOEHLW LQ XQSXEOLVKHG RSLQLRQV KDYH IODWO\ UHMHFWHG VXFK DQ DUJXPHQW 'XWWRQ Y :DUGHQ 1R   86 $SS /H[LV  WK &LU )HE   .HQDQ Y :DUGHQ 1R   86 $SS /H[LV   WK &LU $XJ   %HQLWH] Y :DUGHQ 1R   86 $SS /H[LV  WK &LU 'HF