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 0,&.(< *5(*25<DV ; $GPLQLVWUDWRURIWKH(VWDWHRI *HUDOG*UHJRU\ 1RV 3ODLQWLII$SSHOODQW ! &URVV$SSHOOHH Y 6+(/%< &2817< 7(11(66(( $& *,//(66 LQGLYLGXDOO\DQGLQKLV FDSDFLW\DV6KHULIIRI6KHOE\ &RXQW\7HQQHVVHHs(55< (//,6 'HIHQGDQWV$SSHOOHHV 5+(77 6+($5,1 'HIHQGDQW$SSHOOHH &URVV$SSHOODQW 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV 1Rns'DQLHO%UHHQ0DJLVWUDWHsXGJH $UJXHG'HFHPEHU *UHJRU\Y6KHOE\&RXQW\ 1RV 7HQQHVVHHHWDO 'HFLGHGDQG)LOHGsXO\ %HIRUH5<$1DQG1255,6&LUFXLWsXGJHV18*(17 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 6WHSKHQ 5 /HIIOHU 0HPSKLV 7HQQHVVHH IRU $SSHOODQW%ULDQ/.XKQ)25' +$55,6210HPSKLV 7HQQHVVHH)UHG(sRQHVsU67(:$57:,/.,1621 :,/6210HPSKLV7HQQHVVHHIRU$SSHOOHHV21%5,() 6WHSKHQ 5 /HIIOHU 0HPSKLV 7HQQHVVHH IRU $SSHOODQW %ULDQ/.XKQ)25' +$55,6210HPSKLV7HQQHVVHH )UHG(sRQHVsU67(:$57:,/.,1621 :,/621 0HPSKLV 7HQQHVVHH 0LFKDHO 0 5LFKDUGV %$.(5 '21(/621 %($50$1 &$/':(// 0HPSKLV 7HQQHVVHHIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 18*(17'LVWULFWsXGJH7KHSODLQWLII0LFNH\*UHJRU\ DV$GPLQLVWUDWRURIWKH(VWDWHRI*HUDOG*UHJRU\DSSHDOVIRXU GHFLVLRQVRIWKHWULDOFRXUWWKHJUDQWRIDGLUHFWHGYHUGLFW WR GHIHQGDQW 6KHOE\ &RXQW\ WKH JUDQW RI UHPLWWLWXU WR GHIHQGDQWV5KHWW6KHDULQDQGsHUU\(OOLVWKHGLVPLVVDORI WKHRIILFLDOFDSDFLW\FODLPVDJDLQVWGHIHQGDQW5KHWW6KHDULQ DQGWKHGHQLDORIWKHSODLQWLIIjVPRWLRQIRUDWWRUQH\IHHV DJDLQVWGHIHQGDQW6KHOE\&RXQW\ 7KHGHIHQGDQW5KHWW6KHDULQFURVVDSSHDOVDUJXLQJWKHWULDO FRXUWFRPPLWWHGUHYHUVLEOHHUURUE\QRWFRPSHOOLQJDZLWQHVV 7KH +RQRUDEOH 'RQDOG & 1XJHQW 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ *UHJRU\Y6KHOE\&RXQW\ 1RV 1RV *UHJRU\Y6KHOE\&RXQW\ 7HQQHVVHHHWDO 7HQQHVVHHHWDO :KLOHWKHUHFRUGLQWKLVFDVHLVYRLGRIDQ\LQGLFDWLRQWKDW WRWHVWLI\DQGLQVWHDGDOORZLQJWKHYLGHRWDSHGGHSRVLWLRQRI WKHZLWQHVVmSHUVLVW>HG@LQUHIXVLQJWRWHVWLI\FRQFHUQLQJWKH WKHZLWQHVVWREHLQWURGXFHGDWWULDO7KHSODLQWLIIDUJXHVWKH VXEMHFWPDWWHURIKLVVWDWHPHQWGHVSLWHDQRUGHURIWKHFRXUWWR WULDOFRXUWQHHGQRWWKUHDWHQDZLWQHVVVHUYLQJDOLIHVHQWHQFH GR VRl DQG WKXV WKH WULDO FRXUW DEXVHG LWV GLVFUHWLRQ DQ\ ZLWKFRQWHPSWLQRUGHUWRILQGDZLWQHVVXQDYDLODEOHDQGHYHQ HUURU WKDWPD\KDYHUHVXOWHGZDVKDUPOHVV$Q\SUHVVXUH LIWKHWULDOFRXUWHUUHGLQLWVGHFLVLRQWKHHUURUZDVKDUPOHVV XSRQ WKH ZLWQHVV RU DQ\ SUHVVXUH RI WKUHDW DSSOLHG WR WKH ZLWQHVV E\ WKH WULDO FRXUW ZRXOG XQGRXEWDEO\ KDYH EHHQ :H DIILUP WKH WULDO FRXUWjV GLUHFWHG YHUGLFW GLVPLVVDO RI XQDYDLOLQJDVWKHZLWQHVVLVDOUHDG\VHUYLQJDOLIHVHQWHQFH RIILFLDOFDSDFLW\FODLPVDJDLQVW5KHWW6KHDULQDQGWKHGHQLDO RI WKH PRWLRQ IRU DWWRUQH\ IHHV :H UHYHUVH WKH JUDQW RI UHPLWWLWXUWRGHIHQGDQWV5KHWW6KHDULQDQGsHUU\(OOLV$QG ZH ILQG QR UHYHUVLEOH HUURU ZLWK UHVSHFW WR WKH XVH RI WKH ZLWQHVVjVYLGHRWDSHGGHSRVLWLRQ %$&.*5281' 7KH DOOHJDWLRQV ZKLFK IROORZ ZHUH PDGH LQ WKH 6HFRQG $PHQGHG &RPSODLQW *HUDOG *UHJRU\ WKH GHFHGHQW ZDV FRQILQHGLQWKH6KHOE\&RXQW\MDLORQ0DUFKsHUU\ (OOLVDIHOORZLQPDWHZDVKRXVHGLQWKHFHOOQH[WWR*HUDOG *UHJRU\ 7KDW QLJKW 0U (OOLV DWWDFNHG 0U *UHJRU\ LQIOLFWLQJVHYHUHLQMXULHVUHVXOWLQJLQ0U*UHJRU\jVGHDWKRQ 0DUFK 0LFNH\*UHJRU\WKHDGPLQLVWUDWRURIKLVEURWKHUjVHVWDWH ILOHGWKLVDFWLRQDJDLQVWWKHFRXQW\QXPHURXVFRXQW\RIILFLDOV DQGWKHLQPDWHZKRNLOOHGKLVEURWKHU7KH6HFRQG$PHQGHG &RPSODLQW DOOHJHG WKDW WKH FRXQW\ RIILFLDOV mLQIOLFWHG FUXHO DQGXQXVXDOSXQLVKPHQWXSRQWKH'HFHDVHGLQYLRODWLRQRI WKH(LJKWK$PHQGPHQWDQGGHSULYHGKLPRIOLIHDQGOLEHUW\ ZLWKRXWGXHSURFHVVLQYLRODWLRQRIWKH'XH3URFHVV&ODXVHRI WKH )LIWK DQG )RXUWHHQWK $PHQGPHQWVl $V IRU 0U *UHJRU\jVNLOOHUs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jVVROHDVVLJQPHQWRIHUURULVWKDWWKHWULDOFRXUW $WWKHWLPHRIWKHLQMXULHVDQGGHDWKRI*HUDOG*UHJRU\ VKRXOG KDYH RUGHUHG WKH ZLWQHVV WR WHVWLI\ XQGHU WKUHDW RI &RXQW\'HIHQGDQWVNQHZRUVKRXOGKDYHNQRZQWKDWWKH FRQWHPSW SURFHHGLQJV SULRU WR ILQGLQJ WKH ZLWQHVV LQPDWHV RQ s3RG SRVHG D VHYHUH ULVN RI KDUP WR RQH mXQDYDLODEOHl DQRWKHUDQGUHTXLUHGDKLJKOHYHORIVXSHUYLVLRQ&RXQW\ 'HIHQGDQWVZHUHDFWLQJXQGHUFRORURIODZSXUVXDQWWR 5XOH D SURYLGHV mµ>X@QDYDLODELOLW\ DV D ZLWQHVVj DXWKRULW\ JUDQWHG E\ 6KHOE\ &RXQW\ 7KHLU DFWV DQG LQFOXGHV VLWXDWLRQV LQ ZKLFK WKH GHFODUDQW SHUVLVWV LQ RPLVVLRQVZHUHXQGHUWDNHQZLWKGHOLEHUDWHLQGLIIHUHQFH UHIXVLQJ WR WHVWLI\ FRQFHUQLQJ WKH VXEMHFW PDWWHU RI KLV WRWKHVDIHW\RIWKH3ODLQWLII VWDWHPHQWGHVSLWHDQRUGHURIWKHFRXUWWRGRVRl)('5 (9,'D &RXQW\'HIHQGDQWVGLUHFWO\DQGSUR[LPDWHO\FDXVHGWKH 'HFHDVHGj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sRKQVRQY3HRSOH&ROR DQG KRVWLOH FOLPDWH DW WKH MDLO *HUDOG *UHJRU\ DV D 3G3HRSOHY3LFNHWW0LFK NQRZQKRPRVH[XDOZDVLQDJUHDWHUSRVLWLRQRIGDQJHU 1:G$/5G&RQWUD3OHDXY ZLWKLQ WKH MDLO SRSXODWLRQ WKDQ D KHWHURVH[XDO LQPDWH 6WDWH:LV1:G ZRXOGKDYHEHHQ&RXQW\'HIHQGDQWVZHUHRQQRWLFHRI WKHVHGHIHFWVE\YLUWXHRIWKHVHFRQGLWLRQV )('5(9,'$GYLVRU\&RPPLWWHHjVQRWH 7KHFDVHZDVUHIHUUHGWRWKHPDJLVWUDWHMXGJHZKRWULHGWKH FDVHE\DJUHHPHQWRIDOOWKHSDUWLHV 8QGHU 5XOH E 0U &DPSEHOOjV IRUPHU WHVWLPRQ\ ZDV GHHPHG DGPLVVLEOH 5XOH E SURYLGHV $WWULDOGHSXW\MDLOHU5REHUW+DUG\WHVWLILHGWKDWRQ0DUFK E +HDUVD\ H[FHSWLRQV 7KH IROORZLQJ DUH QRW H[FOXGHG E\ WKH WKHGD\DIWHUWKHDWWDFNWRRNSODFHKHIRXQG0U*UHJRU\ KHDUVD\ UXOH LI WKH GHFODUDQW LV XQDYDLODEOH DV D ZLWQHVV EOHHGLQJLQKLVFHOO'HVFULELQJ0U*UHJRU\2IILFHU+DUG\ )RUPHU WHVWLPRQ\ 7HVWLPRQ\ JLYHQ DV D ZLWQHVV DW WHVWLILHGm>K@LVH\HVZHUHDOOVZROOHQ+LVOLSVZHUHEXVWHG DQRWKHU KHDULQJ RI WKH VDPH RU D GLIIHUHQW SURFHHGLQJ RU LQ D 'ULHGEORRGZDVRQKLVIDFHORRNHGOLNHKHKDGEHHQEHDWHQl GHSRVLWLRQ WDNHQ LQ FRPSOLDQFH ZLWK ODZ LQ WKH FRXUVH RI WKH $OWKRXJK EDGO\ LQMXUHG 0U *UHJRU\ VDLG WKDW mKH ZDV VDPH RU DQRWKHU SURFHHGLQJ LI WKH SDUW\ DJDLQVW ZKRP WKH WHVWLPRQ\ LV QRZ RIIHUHG RU LQ D FLYLO DFWLRQ RU SURFHHGLQJ D MXPSHGXSRQZKLOHKHZDVFRPLQJEDFNIURPWKHVKRZHUVRQ SUHGHFHVVRU LQ LQWHUHVW KDG DQ RSSRUWXQLW\ DQG VLPLODU PRWLYH WR WKHHYHQLQJVKLIWl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jVUHIXVDOWRWHVWLI\WKH WULDOFRXUWUXOHGWKDWWKHZLWQHVVZDVXQDYDLODEOHDQGDOORZHG '\UDQ &DPSEHOO ZDV DQ LQPDWH KRXVHG LQ s3RG DW WKH KLV SUHYLRXVO\ WDNHQ GHSRVLWLRQ WR EH UHDG LQWR WKH UHFRUG 6KHOE\&RXQW\sDLODWWKHWLPHRIWKHLQFLGHQWVJLYLQJULVHWR 7KLVWHVWLPRQ\LQFOXGHGWKHIROORZLQJ WKLV OLWLJDWLRQ +H ZDV FDOOHG DV D ZLWQHVV DW WULDO $IWHU KDYLQJEHHQVZRUQ0U&DPSEHOOVWDWHG 4 'R\RXUHPHPEHUDILJKWLQ0DUFKRIEHWZHHQ sDFNLH6WHZDUWDQGDQLQPDWHE\WKHQDPHRIsHUU\(OOLV" D@ GLVSXWH ZKLFK 3ODLQWLIIILOHGDPRWLRQIRUQHZWULDODJDLQVW6KHOE\&RXQW\ FKDQJHV WKH OHJDO UHODWLRQVKLS EHWZHHQ LWVHOI DQG WKH DQG IRU DQ DZDUG RI DWWRUQH\ IHHV DJDLQVW WKH &RXQW\ GHIHQGDQW 3D\QH )G DW VHH DOVR 7H[DV 6WDWH 'HIHQGDQWV6KHDULQDQG(OOLVILOHGWKHLURZQPRWLRQVIRUQHZ 7HDFKHUV$VVjQY*DUODQG,QGHS6FK'LVW86 WULDORULQWKHDOWHUQDWLYHIRUUHPLWWLWXU7KHPDJLVWUDWHMXGJH 6&W$SUHYDLOLQJPD\DOVR GHQLHGSODLQWLIIjVPRWLRQIRUQHZWULDODQGIRUDWWRUQH\jVIHHV EHGHILQHGDVDSDUW\ZKRDFKLHYHVDVXEVWDQWLDOSRUWLRQRIWKH DQGKHJUDQWHG'HIHQGDQWVjPRWLRQIRUUHPLWWLWXU UHOLHIVRXJKW,QDQ\HYHQWWKHUHPXVWEHVRPHEHQHILWWRWKH SODLQWLIILQWKHIRUPRIPRQHWDU\GDPDJHVLQMXQFWLYHUHOLHIRU D YROXQWDU\ FKDQJH LQ GHIHQGDQWjV FRQGXFW :RROULGJH Y 0DUOHQH,QGXV)GWK&LU:H KDYH UHFRJQL]HG WKDW ZKHQ QR MXGLFLDO UHOLHI LV RUGHUHG D SODLQWLIIPD\TXDOLI\IRUmSUHYDLOLQJSDUW\lVWDWXVLIKHFDQ VKRZ KH ZDV WKH mFDWDO\VWl IRU WKH GHIHQGDQWjV FKDQJHG EHKDYLRU3D\QH)G2WKHQY$QQ$UERU6FK%G )GWK&LU 7KHILUVWWKHRU\DGYDQFHGE\$SSHOODQWLVFOHDUO\ZLWKRXW 7KH MXGJPHQW VWDWHV WKDW WKH &RPPLVVLRQHUV DUH GLVPLVVHG LQ WKHLU LQGLYLGXDO FDSDFLWLHV DQG LQ SDUHQWKHVHV DSSHDUV WKH QDPHV RI WKH PHULW$VDWKUHVKROGPDWWHUmDVXLWDJDLQVWDJRYHUQPHQW &RPPLVVLRQHUV ,W VKRXOG EH QRWHG WKDW LQ WKH FDSWLRQ RI WKH 6HFRQG RIILFLDO LQ KLV RU KHU SHUVRQDO FDSDFLW\ FDQQRW OHDG WR $PHQGHG &RPSODLQW &RPPLVVLRQHU sXOLDQ 7 %ROWRQ LV OLVWHG DV D LPSRVLWLRQRIIHHOLDELOLW\XSRQWKHJRYHUQPHQWDOHQWLW\$ GHIHQGDQW KRZHYHU WKLV QDPH GRHV QRW DSSHDU LQ WKH SDUHQWKHWLF OLVWLQJ RI &RPPLVVLRQHUV LQ WKH MXGJPHQW HQWU\ 6LQFH WKH MXGJPHQW PDNHV FOHDU YLFWRU\LQDSHUVRQDOFDSDFLW\DFWLRQLVDYLFWRU\DJDLQVWWKH WKDW WKH &RPPLVVLRQHUV DUH GLVPLVVHG LQ ERWK WKHLU LQGLYLGXDO DQG RIILFLDO LQGLYLGXDO GHIHQGDQW UDWKHU WKDQ DJDLQVW WKH HQWLW\ WKDW FDSDFLWLHV ZH FRQFOXGH RPLVVLRQ RI sXOLDQ %ROWRQjV QDPH LV D PHUH HPSOR\VKLPl.HQWXFN\Y*UDKDP86 RYHUVLJKW ,Q DQ\ HYHQW QR SDUW\ KDV FKDOOHQJHG GLVPLVVDO RI WKH 6&W7KHFODLPVDJDLQVW 2IILFHU &RPPLVVLRQHUV *UHJRU\Y6KHOE\&RXQW\ 1RV 1RV *UHJRU\Y6KHOE\&RXQW\ 7HQQHVVHHHWDO 7HQQHVVHHHWDO FRXUWV 7KLV XQHTXLYRFDO SUHIHUHQFH RI WKH 7HQQHVVHH ',5(&7('9(5',&7 OHJLVODWXUH LV DQ H[FHSWLRQDO FLUFXPVWDQFH IRU GHFOLQLQJ MXULVGLFWLRQ$FFRUGLQJO\ZHILQGQRHUURULQWKHPDJLVWUDWH 2QDSSHDO$SSHOODQWFRQWHQGVWKHWULDOFRXUWLPSURSHUO\ MXGJHjV GLVPLVVDO RI WKH RIILFLDO FDSDFLW\ FODLPV DJDLQVW GLVPLVVHG 6KHOE\ &RXQW\ SULRU WR VHQGLQJ WKH FDVH WR WKH 2IILFHU6KHDULQ MXU\,QVXSSRUWRIWKLVFRQWHQWLRQ$SSHOODQWVWDWHVWKDWWKH TXHVWLRQ RI ZKHWKHU 6KHOE\ &RXQW\ DGRSWHG DQ $77251(<)((6 XQFRQVWLWXWLRQDOFXVWRPDWWKHMDLODQGWKHTXHVWLRQRIZKHWKHU WKDWDOOHJHGFXVWRPFDXVHGWKHGHDWKRI*HUDOG*UHJRU\ZHUH ,Q VXSSRUW RI KLV FODLP IRU DWWRUQH\jV IHHV $SSHOODQW IRUWKHMXU\WRGHFLGH1RRQHGLVSXWHVWKHRIILFLDOSROLF\RI DGYDQFHVWZRWKHRULHVRIUHFRYHU\DJDLQVW6KHOE\&RXQW\ WKH&RXQW\ZDVWKDWQRWZRFHOOGRRUVRIWKHs3RGZHUHWREH LIWKHWULDOFRXUWZDVFRUUHFWLQILQGLQJWKDW6KHOE\&RXQW\ZDV RSHQVLPXOWDQHRXVO\7KH$SSHOODQWDUJXHVWKDWWHVWLPRQ\ WKHUHDOSDUW\LQLQWHUHVWDQGLQGLVPLVVLQJWKLVDFWLRQDJDLQVW IURP1RYHOOD6PLWK$UQROGLVHYLGHQFHQHFHVVDU\WRVKRZD 2IILFHU6KHDULQLQKLVRIILFLDOFDSDFLW\WKH&RXQW\LVOLDEOHWR FXVWRP WKDW VXSHUVHGHG WKH SROLF\ $SSHOODQW WDNHV 0V SD\DWWRUQH\jVIHHVEDVHGXSRQWKHVXFFHVVLQSURVHFXWLQJWKH 6PLWK$UQROGjV WHVWLPRQ\ D VWHS IXUWKHU DUJXLQJ WKDW WKH &RXQW\jVHPSOR\HHWKHODZVXLWUHVXOWHGLQWKH&RXQW\j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mSUHYDLOLQJSDUW\l FRQWHQGVWKDWHYHQLIDSROLF\ZDVHVWDEOLVKHG$SSHOODQWKDV IDLOHGWRVKRZDGLUHFWOLQNEHWZHHQWKHSROLF\DQGWKHLQMXULHV 7KLV &LUFXLW KDV DSSOLHG WZR VWDQGDUGV RI UHYLHZ ZLWK VXVWDLQHG UHVSHFWWRWKLVLVVXHDFOHDUHUURUVWDQGDUGLVDSSOLHGZKHQ UHYLHZLQJ WKH IDFWXDO ILQGLQJV XQGHUO\LQJ WKH WULDO FRXUWjV 7KLVFRXUWUHYLHZVGHQRYRWKHGLVWULFWFRXUWjVGLVSRVLWLRQ GHWHUPLQDWLRQRImSUHYDLOLQJSDUW\lVWDWXVDQGDQDEXVHRI RID5XOHDPRWLRQIRUMXGJPHQWDVDPDWWHURIODZ6HH GLVFUHWLRQVWDQGDUGLVXVHGIRUWKHGHQLDORIDQDZDUGRIIHHV 6Q\GHUY$*7UXFNLQJ,QF)GWK&LU 3D\QHY%RDUGRI(GXF&OHYHODQG&LW\6FK)G $QGWKLVFRXUWDSSOLHVWKHVDPHVWDQGDUGRQUHYLHZDVWKH WK&LUFLWLQJ+HHUHQY&LW\RIs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msXGJPHQWDVDPDWWHURIODZVKRXOGEHJUDQWHGRQO\ZKHUH FODLPV IRU UHVSRQGHDW VXSHULRU OLDELOLW\ ZDV LQ HUURU DUHDVRQDEOHMXURUUHO\LQJRQWKHHYLGHQFHSXWIRUWKDWWULDO $FFRUGLQJWR$SSHOODQW7HQQHVVHHODZDOORZVKLPWRKROG FRXOGQRWILQGIRUWKHSODLQWLIIRQHDFKRIWKHHOHPHQWVRIKHU WKH&RXQW\OLDEOHIRUWKHQHJOLJHQWDFWLRQVRI2IILFHU6KHDULQ FODLPl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jQRIs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j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l 86& PXVWGHPRQVWUDWHWKDWKHZDVGHSULYHGRIDULJKWVHFXUHG F E\WKH&RQVWLWXWLRQRUODZVRIWKH8QLWHG6WDWHVDQGWKDW KHZDVVXEMHFWHGRUFDXVHGWREHVXEMHFWHGWRWKLVGHSULYDWLRQ 7KH 7HQQHVVHH *RYHUQPHQWDO 7RUW /LDELOLW\ $FW E\DSHUVRQDFWLQJXQGHUFRORURIVWDWHODZ6HDUF\Y&LW\RI m7*7/$l7&$HWVHTSURYLGHVLQSHUWLQHQW 'D\WRQ)GWK&LUFLWLQJ)ODJJ%URV SDUW m>W@KH FLUFXLW FRXUWV VKDOO KDYH H[FOXVLYH RULJLQDO Y %URRNV 86 6 &W MXULVGLFWLRQ RYHU DQ\ DFWLRQ EURXJKW XQGHU WKLV FKDSWHUl 7HQQ&RGH$QQ ,WLVILUPO\HVWDEOLVKHGWKDWDPXQLFLSDOLW\RUDVLQWKLVFDVH ,QWKLVLQVWDQFHWKH7HQQHVVHHOHJLVODWXUHH[SUHVVHGDFOHDU D FRXQW\ FDQQRW EH KHOG OLDEOH XQGHU IRU DQ LQMXU\ SUHIHUHQFHWKDW7*7/$FODLPVEHKDQGOHGE\LWVRZQVWDWH LQIOLFWHGVROHO\E\LWVHPSOR\HHVRUDJHQWV0RQHOOY1HZ *UHJRU\Y6KHOE\&RXQW\ 1RV 1RV *UHJRU\Y6KHOE\&RXQW\ 7HQQHVVHHHWDO 7HQQHVVHHHWDO DFWLRQ1RWRQO\GLG2IILFHU6KHDULQSXUSRVHO\RSHQ,QPDWH WR@l WKH GHFHGHQWjV FHOO 7KLV WKH)RXUWHHQWK$PHQGPHQW%0:RI1RUWK$PHULFD,QFY WHVWLPRQ\VXJJHVWVWKDW2IILFHU6KHDULQSXUSRVHO\EURNHWKH *RUH866&W7KH6XSUHPH HVWDEOLVKHG SROLF\ WR HQDEOH sHUU\ (OOLV WR JHW LQWR 0U &RXUWVHWIRUWKWKUHHIDFWRUVWREHFRQVLGHUHGLQUHYLHZLQJDQ *UHJRU\jVFHOO:KLOHDQ\UDWLRQDOWULHURIIDFWFRXOGILQGWKDW DOOHJHGO\H[FHVVLYHMXU\DZDUGFRXUWVDUHWRH[DPLQHWKH WKH ZULWWHQ SROLF\ ZDV QRW IROORZHG RQ PRUH WKDQ RQH GHJUHHRIUHSUHKHQVLELOLW\RIWKHFRQGXFWFRXUWVVKRXOG RFFDVLRQ$SSHOODQWKDVZKROO\IDLOHGWRSRLQWWRHYLGHQFHLQ ORRN DW WKH GLVSDULW\ EHWZHHQ WKH KDUP RU SRWHQWLDO KDUP WKHUHFRUGVXJJHVWLQJWKDWWKLVODSVHRIFRPSOLDQFHZLWKWKH VXIIHUHGE\>WKHSODLQWLII@DQGKLVSXQLWLYHGDPDJHDZDUG ZULWWHQSROLF\ZDVVRZHOOVHWWOHGDVWRFRQVWLWXWHDFXVWRP DQG UHYLHZLQJ FRXUWV PXVW H[DPLQH WKH GLIIHUHQFH WKHUHE\DWWDFKLQJOLDELOLW\WR6KHOE\&RXQW\'RH)G EHWZHHQ >WKH SXQLWLYH GDPDJHV@ DQG WKH FLYLO SHQDOWLHV DW DXWKRUL]HGRULPSRVHGLQFRPSDUDEOHFDVHV,GDW $SSHOODQW FRQWHQGV WKDW WKH &RXQW\jV UHVSRQVLELOLW\ LV 7KHWULDOFRXUWLQWKLVLQVWDQFHLQVWUXFWHGWKHMXU\WKDWDQ HPERGLHGLQLWVWROHUDWLRQRIWKHFXVWRPRIOHDYLQJFHOOGRRUV DZDUGRISXQLWLYHGDPDJHVZDVSHUPLWWHGLISODLQWLIISURYHG UDQGRPO\RSHQ$SSHOODQWjVDUJXPHQWWKDWWKHFXVWRPZDV WKDWWKHGHIHQGDQWjVFRQGXFWZDVmZDQWRQDQGUHFNOHVVQRW WROHUDWHGVXJJHVWVWKDWWKH&RXQW\PXVWKDYHHLWKHUDFWXDORU PHUHO\ XQUHDVRQDEOHl %\ UHWXUQLQJ DQ DZDUG RI SXQLWLYH FRQVWUXFWLYH QRWLFH RI WKDW DOOHJHG FXVWRP 7KHUH LV QR GDPDJHVWKHMXU\KDGWRKDYHIRXQGmZRQWRQDQGUHFNOHVVl HYLGHQFH KRZHYHU WKDW WKH &RXQW\ RU DQ\ DXWKRUL]HG FRQGXFWE\2IILFHU6KHDULQVXJJHVWLQJWKDWXQGHUWKHmGHJUHH GHFLVLRQPDNHUZDVRQQRWLFHWKDWWZRRUPRUHFHOOGRRUVZHUH RI UHSUHKHQVLELOLW\l IDFWRU D VXEVWDQWLDO SXQLWLYH GDPDJH RSHQ DW WKH VDPH WLPH ,Q IDFW 2IILFHU :LOOLDP &DVK DZDUG LV SHUPLVVLEOH 0RUHRYHU WKH UHFRUG LWVHOI VSHDNV YROXPHV RI WKH UHSUHKHQVLEOH QDWXUH RI 2IILFHU 6KHDULQjV *UHJRU\Y6KHOE\&RXQW\ 1RV 1RV *UHJRU\Y6KHOE\&RXQW\ 7HQQHVVHHHWDO 7HQQHVVHHHWDO VXIIHULQJ'DPDJHDZDUGVIRUVXFKLQMXULHVDUHDSSURSULDWHDV LQYHVWLJDWHG0U*UHJRU\jVGHDWKDQGIRXQGQRYLRODWLRQRI WKHPDJLVWUDWHMXGJHSRLQWHGRXWLQKLVRSLQLRQ6HH0HPSKLV WKHSROLF\RUSURFHGXUHE\WKH6KHULIIjVRIILFH &RPPXQLW\6FK'LVWY6WDFKXUD86 6 &W GDPDJHV PD\ LQFOXGH VXFK $SSHOODQWIXUWKHUFRQWHQGV6KHOE\&RXQW\jVOLDELOLW\VKRXOG LQMXULHV DV LPSDLUPHQW WR UHSXWDWLRQ SHUVRQDO KXPLOLDWLRQ KDYHJRQHWRWKHMXU\EHFDXVHKLVSHQGHQWVWDWHODZFODLP DQGPHQWDODQJXLVKDQGVXIIHULQJ XQGHU 7HQQHVVHH &RGH $QQRWDWHG DOORZV IRU OLDELOLW\XQGHUDWKHRU\RIUHVSRQGHDWVXSHULRU 7KHPDJLVWUDWHMXGJHjVGHWHUPLQDWLRQWKDWWKHDZDUGZDV FOHDUO\H[FHVVLYHDQGWKDWWKHUHZDVQRHYLGHQFHSUHVHQWHGDW 5XOH H RI WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH WULDOIURPZKLFKWKHMXU\UHDVRQDEO\FRXOGKDYHDUULYHGDWDQ SURYLGHVm>D@IWHUDQ\FRQIHUHQFHKHOGSXUVXDQWWRWKLVUXOHDQ DZDUG RI VHHPV WR EH LQ HUURU :H EHOLHYH WKH RUGHUVKDOOEHHQWHUHGUHFLWLQJWKHDFWLRQWDNHQ7KLVRUGHU DZDUGZDVQRWFOHDUO\H[FHVVLYHDQGWKDWDPSOHHYLGHQFHZDV VKDOO FRQWURO WKH VXEVHTXHQW FRXUVH RI WKH DFWLRQ XQOHVV SUHVHQWHGWRHVWDEOLVKDQDZDUGRIWKLVDPRXQW PRGLILHGE\DVXEVHTXHQWRUGHU7KHRUGHUIROORZLQJDILQDO SUHWULDOFRQIHUHQFHVKDOOEHPRGLILHGRQO\WRSUHYHQWPDQLIHVW 7KHHYLGHQFHDGGXFHGDWWULDOVKRZVWKDW*HUDOG*UHJRU\ LQMXVWLFHl)HG5&LY3H7KLV&LUFXLWKDVKHOGWKDWD VXIIHUHGVHYHUHLQMXULHVDVDUHVXOWRIDEUXWDOEHDWLQJE\sHUU\ SDUW\j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µEXVWHGj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jV 2IILFH IRU DSSUR[LPDWHO\ WKUHH \HDUV *UHJRU\Y6KHOE\&RXQW\ 1RV 1RV *UHJRU\Y6KHOE\&RXQW\ 7HQQHVVHHHWDO 7HQQHVVHHHWDO 5(0,77,785 LV VR H[FHVVLYH RU LQDGHTXDWH DV WR VKRFN WKH MXGLFLDO FRQVFLHQFHRIWKHFRXUW)DUEHU)G )ROORZLQJ WKH MXU\ YHUGLFW 'HIHQGDQWV 6KHDULQ DQG (OOLV VRXJKW D QHZ WULDO RU LQ WKH DOWHUQDWLYH UHPLWWLWXU RQ WKH :HEHJLQZLWKWKHPDJLVWUDWHMXGJHj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µEORRGZDVPL[HG UHPLWWHG E\ D FRXUW XQOHVV LW LV EH\RQG WKH PD[LPXP ZLWK>*UHJRU\jV@WHDUVj+HOLYHGIRUWKUHHGD\VEHIRUH GDPDJHV WKDW WKH MXU\ UHDVRQDEO\ FRXOG ILQG WR EH VXFFXPELQJ WR KLV LQMXULHV 3ODLQWLII SUHVHQWHG QR FRPSHQVDWRU\ IRU D SDUW\ V ORVV sDFNVRQ Y &LW\ RI HYLGHQFHDWWULDOFRQFHUQLQJPHGLFDORUIXQHUDOH[SHQVHV &RRNHYLOOH)GWK&LUFLWLQJ)DUEHU 9LHZLQJ WKH HYLGHQFH SUHVHQWHG LQ WKH OLJKW PRVW Y0DVVLOORQ%GRI(GXF)GWK&LU IDYRUDEOHWRSODLQWLIIWKHFRXUWILQGVWKHMXU\j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jVFRQVFLRXVSDLQDQG