McAlpin v. Lexington 76 Auto

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

'277,( 5(1(( 0&$/3,1 ;
3ODLQWLII$SSHOODQW 

 1R
Y 
!

/(;,1*721  $872 758&. 
6723 ,1&D.HQWXFN\ 
FRUSRUDWLRQ0$5,( 0,//6DV 
$GPLQLVWUDWUL[RIWKH(VWDWHRI 
9DQFH0LOOV%(&.+$0 

*$5/$1' $33$/$&+,$1 2,/ 
&25325$7,21D.HQWXFN\ 
FRUSRUDWLRQ* 0 2,/ 
&203$1< ,1&D.HQWXFN\ 
FRUSRUDWLRQ% 9 5($/7< 
&25325$7,21 

'HIHQGDQWV$SSHOOHHV 
1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW3LNHYLOOH
1RnsRVHSK0+RRG'LVWULFWsXGJH
$UJXHG$XJXVW
'HFLGHGDQG)LOHG2FWREHU


 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

%HIRUH.583$16.<:(//)25'DQG%2**6 BBBBBBBBBBBBBBBBBBBBBB
&LUFXLWsXGJHV
&21&855(1&(
BBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBB
&2816(/ +$55< : :(//)25' &LUFXLW sXGJH FRQFXUULQJ  ,
FRQFXU LQ WKH RSLQLRQ RI sXGJH %RJJV EXW DGG D IHZ
$5*8(':LOOLDP&5DPELFXUH5$0%,&85(0,//(5 FRPPHQWVWKDWVHHPDSSURSULDWH
3,6$&$12/H[LQJWRQ.HQWXFN\IRU$SSHOODQW*DU\
:1DSLHU1$3,(5 $662&,$7(6/RQGRQ.HQWXFN\ 7KH GLVWULFW FRXUWjV LQLWLDO RUGHU QDPLQJ *DKDIHU DV
IRU$SSHOOHHV21%5,():LOOLDP&5DPELFXUHsHIIUH\ $SSDODFKLDQ 2LO &RPSDQ\jV m$2&l UHFHLYHU ZDV
sRKQ .XHEOHU 5$0%,&85( 0,//(5  3,6$&$12 XQIRUWXQDWHDQGLOODGYLVHGHVSHFLDOO\ZLWKRXWWKHSRVWLQJRI
/H[LQJWRQ .HQWXFN\ IRU $SSHOODQW  *DU\ : 1DSLHU DSURSHUUHFHLYHUjVERQGDGHTXDWHO\WRSURWHFW$2&LQWKH
1$3,(5  $662&,$7(6 /RQGRQ .HQWXFN\ IRU HYHQRIWKHUHFHLYHUjVLPSURSHURUXQDXWKRUL]HGDFWLRQV7KLV
$SSHOOHHV UHJUHWWDEOHDFWLRQKDVHQJHQGHUHGPXOWLSOHFRXUWILOLQJVJUHDW
H[SHQVHWRWKHSDUWLHVDQGUHFULPLQDWLRQV,DPQRWVXUHWKDW
%2**6sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK *DKDIHUKLPVHOIGLGQRWHQJHQGHUVRPHRIWKHVHSUREOHPV
.583$16.<sMRLQHG:(//)25'sSGHOLYHUHG DQGDQH[DPLQDWLRQRIKLVDFWLRQVPLJKWVKRZKLVDZDUHQHVV
DVHSDUDWHFRQFXUULQJRSLQLRQ WKDWDSURSHUDQGVXEVWDQWLDOERQGZDVQHYHUSRVWHGWRSURWHFW
$2&,WZDVIXUWKHUUHJUHWWDEOHWKDWWKLVUHFHLYHUVKLSDFWLRQ
BBBBBBBBBBBBBBBBB ZDVWDNHQZLWKRXWDFRQWHPSRUDQHRXVKHDULQJ
23,1,21 ,WZRXOGDSSHDUIXUWKHUPRUHWKDW*DKDIHUjVDFWLRQVYLVD
BBBBBBBBBBBBBBBBB YLV0F$OSLQVHHNLQJODUJHIHHVZHUHWDNHQZLWKNQRZOHGJH
%2**6&LUFXLWsXGJH3ODLQWLII$SSHOODQW'RWWLH5HQHH WKDWSODLQWLIIVKDGIHZLIDQ\DVVHWVWRVDWLVI\KLVFODLPDQG
0F$OSLQ FKDOOHQJHV RQ MXULVGLFWLRQDO JURXQGV WZR GLVWULFW WKDWVXFKDFWLRQPLJKWIRUFHDVHWWOHPHQWZLWK$2&E\KLV
FRXUW RUGHUV KROGLQJ KHU LQ FRQWHPSW RI WKH FRXUWjV SULRU IRUPHUmFOLHQWVl
RUGHUV DQG RI WKH VHWWOHPHQW DJUHHPHQW WKDW WKH SDUWLHV ,I0F$OSLQLVFRUUHFWWKDWWKHRULJLQDOFRQWHPSWRUGHUZDV
H[HFXWHGLQDQHIIRUWWRWHUPLQDWHWKHOLWLJDWLRQXQGHUO\LQJWKLV HQWHUHGDJDLQVWKHUZLWKRXWDKHDULQJ,ZRXOGTXHVWLRQWKH
DSSHDO2QO\RQHVPDOOSDUWRIWKHVHWWOHPHQWDJUHHPHQWZDV SURSULHW\RIWKHGLVWULFWFRXUWjVDFWLRQLQWKDWUHJDUG,QDQ\
LQFRUSRUDWHGLQWRWKHFRXUWjVRUGHUGLVPLVVLQJWKHVXLW7KXV HYHQWSXUVXDQWWRWKHRSLQLRQDQGKROGLQJXQGHU.RNNRQHQY
WKHFRXUWKDGQRMXULVGLFWLRQZLWKUHJDUGWRPRVWRIWKHRUGHU *XDUGLDQ/LIH,QV&R86DOORIWKHDFWLRQV
DSSHDOHG IURP  :H WKHUHIRUH UHYHUVH DQG UHPDQG IRU RIWKHGLVWULFWFRXUWVHHNLQJWRHQIRUFHRWKHUSURYLVLRQVRIWKH
FRQVLGHUDWLRQRIDQRUGHUZLWKLQWKHFRXUWjVMXULVGLFWLRQ VHWWOHPHQWDJUHHPHQWZRXOGEHRIQRHIIHFWDVEHLQJZLWKRXW
MXULVGLFWLRQ
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

GHIHQGDQWVj SURSHU UHPHG\ IRU WKHVH YLRODWLRQV OLHV LQ D ,
VHSDUDWHDFWLRQIRUEUHDFKRIWKH6HWWOHPHQW$JUHHPHQWLQ
ZKLFKVXLW WKH GHIHQGDQWVFRXOGDOVRUHTXHVWDSUHOLPLQDU\ +LVWRU\RIWKH/LWLJDWLRQ
LQMXQFWLRQ HQMRLQLQJ 0F$OSLQ IURP SURFHHGLQJ ZLWK KHU
PDOSUDFWLFH DFWLRQ WR WKH H[WHQW WKDW KHU FDVH GHSHQGV RQ 3ODLQWLII$SSHOODQW'RWWLH5HQHH0F$OSLQEURXJKWWKHVXLW
FODLPVVKHSURPLVHGWRDEDQGRQXQGHUWKH$JUHHPHQW6HH WKDW JDYH ULVH WR WKH VHWWOHPHQW DJUHHPHQW DW LVVXH LQ WKLV
'RZQH\)GDWVWDWLQJWKDWEHFDXVHWKHGLVWULFWFRXUW DSSHDOLQKHUFDSDFLW\DVDGPLQLVWUDWUL[RIWKHHVWDWHRIKHU
mIDLOHGWRUHWDLQMXULVGLFWLRQRYHUHQIRUFHPHQWRIWKH>SDUWLHVj ODWHIDWKHU5REHUW70RFNDQGDVDQDOOHJHGVKDUHKROGHURI
VHWWOHPHQW@ DJUHHPHQW ZKHQ HQWHULQJ MXGJPHQW >WKH WKHSULPDU\GHIHQGDQWLQWKLVFDVH$SSDODFKLDQ2LO&RPSDQ\
GHIHQGDQWjV@EUHDFKRIFRQWUDFWFODLPZDVSURSHUO\DGGUHVVHG $2&,QKHUVXLWEHIRUHWKHGLVWULFWFRXUW0F$OSLQDOOHJHG
LQDVHSDUDWHSURFHHGLQJl7KHGLVWULFWFRXUWPD\KRZHYHU WKDW$2&LQDVHULHVRILOOHJDOWUDQVDFWLRQVGHIUDXGHG0RFN
HQIRUFH LWV RUGHUV FRQFHUQLQJ WKH UHWXUQ RI FRQILGHQWLDO DQGWKHUHE\KLVHVWDWHRIWKHYDOXHRIWKHVWRFNKHDOOHJHGO\
FRUSRUDWHGRFXPHQWVDJDLQVW0F$OSLQLIWKHFRXUWGHWHUPLQHV KHOGLQWKHFRPSDQ\,QKHUFRPSODLQW0F$OSLQDVVHUWHGWKDW
RQUHPDQGWKDWWKRVHRUGHUVELQG0F$OSLQDVZHOODV*DKDIHU WKHGLVWULFWFRXUWKDGIHGHUDOTXHVWLRQMXULVGLFWLRQRYHUKHU
VXLWEHFDXVH$2&jVXQODZIXODFWLRQVFRQVWLWXWHGDSDWWHUQRI
$ SURSHU UHDGLQJ RI WKH 6XSUHPH &RXUWjV RSLQLRQ LQ UDFNHWHHULQJXQGHUWKHFLYLO5,&2VWDWXWH86&††
.RNNRQHQ FRPSHOV WKH FRQFOXVLRQ WKDW WKH GLVWULFW FRXUW 7KHVWDWHODZFODLPVRYHUZKLFK0F$OSLQFODLPHGWKH
ODFNHG MXULVGLFWLRQ WR HQIRUFH WHUPV RI WKH 6HWWOHPHQW GLVWULFWFRXUWKDGVXSSOHPHQWDOMXULVGLFWLRQZHUHSUHYLRXVO\
$JUHHPHQW WKDW ZHUH QRW H[SUHVVO\ LQFRUSRUDWHG LQ LWV SOHGLQDQGE\0F$OSLQjVSUHGHFHVVRUVLQLQWHUHVW
GLVPLVVDORURWKHURUGHUV7KHSRUWLRQVRIWKHGLVWULFWFRXUWjV 5REHUW0RFNDQGKLVZLIH'RWWLH70RFNDQGZHUHDOVR
sDQXDU\DQG0D\UXOLQJVGLUHFWLQJ0F$OSLQWRFRPSO\ SOHGE\0F$OSLQKHUVHOILQDVWDWHFRXUWDFWLRQLQ7KH
ZLWK SDUDJUDSKV  DQG  RI WKH 6HWWOHPHQW $JUHHPHQW DUH FODLPV UDLVHG LQ WKH VWDWH FRXUW SURFHHGLQJV ZHUH QRW
WKHUHIRUH LQYDOLG  :KHWKHU WKH SRUWLRQV RI WKH RUGHUV DGMXGLFDWHG RQ WKH PHULWV KRZHYHU VR 0F$OSLQ ZDV QRW
SHUWDLQLQJWRWKHUHWXUQRI$2&GRFXPHQWVPD\EHHQIRUFHG EDUUHGIURPUHSOHDGLQJWKHPDQFLOODU\WRKHUIHGHUDO5,&2
DJDLQVW 0F$OSLQ GHSHQGV RQ ZKHWKHU WKH GLVWULFW FRXUWjV FODLP
0DUFK  DQG 6HSWHPEHU   RUGHUV FRQFHUQLQJ WKH
UHWXUQRIFRQILGHQWLDOGRFXPHQWVFDQEHFRQVWUXHGWRELQGKHU
HYHQWKRXJKWKH\H[SUHVVO\UHIHURQO\WR*DKDIHU%HFDXVH
WKHGLVWULFWFRXUWLVLQWKHEHVWSRVLWLRQWRGHWHUPLQHWKHVFRSH
DQGPHDQLQJRIWKHVHRUGHUVZH5(9(56(WKHMXGJPHQW 
$OWKRXJK $2& ZDV DGPLQLVWUDWLYHO\ GLVVROYHG RQ 1RYHPEHU 
KROGLQJ 0F$OSLQ LQ FRQWHPSW RI FRXUW DQG 5(0$1' WKH  IRU IDLOLQJ WR ILOH DQ DQQXDO UHSRUW LW UHPDLQV D SDUW\ WR WKLV

FDVHIRUIXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ OLWLJDWLRQ DQG LV UHIHUUHG WR DV WKH SULQFLSDO RU SULPDU\ GHIHQGDQW EHFDXVH
LW LV WKH FRUSRUDWLRQ LQ ZKLFK 5REHUW 7 0RFN 0F$OSLQjV SUHGHFHVVRU LQ
LQWHUHVW DOOHJHGO\ RZQHG VWRFN


7KH  DFWLRQ ILOHG ZDV GLVPLVVHG E\ WKH 3XODVNL &LUFXLW &RXUW IRU
LPSURSHU YHQXH 7KH  DFWLRQ ZDV GLVPLVVHG E\ WKH .QR[ &LUFXLW
&RXUW IRU ODFN RI SURVHFXWLRQ DQG WKH .HQWXFN\ &RXUW RI $SSHDOV IRXQG
WKDW GLVPLVVDO WR EH ZLWKRXW SUHMXGLFH 0F$OSLQ EURXJKW WKH  VXLW LQ
3XODVNL &LUFXLW &RXUW EXW YROXQWDULO\ GLVPLVVHG WKH FDVH XSRQ OHDUQLQJ
WKDW KHU IDWKHUjV  VXLW LQ WKDW FRXUW ZDV GLVPLVVHG IRU LPSURSHU YHQXH
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

0F$OSLQjV IDWKHU 5REHUW 0RFN ZDV DQ $2& HPSOR\HH DUWIXOO\FRQVWUXHGWRLPSO\WKDW>VKH@ZDVUHTXLUHGWRSHUIRUP
ZKR ZDV GLVFKDUJHG E\ WKH FRPSDQ\ LQ WKH HDUO\ jV DVSHFLILFDFWlWKHGHIHQGDQWVIDLOHGWRHVWDEOLVKmE\FOHDUDQG
$FFRUGLQJWR0F$OSLQ0RFNRZQHGRI$2&jVVWRFN FRQYLQFLQJHYLGHQFHWKDW>VKH@YLRODWHGDQ\RIWKH>@RUGHUVl
ZKHQ KH ZDV GLVFKDUJHG DQG KDG DQ RSWLRQ WR DFTXLUH DQ $SSHOODQWV%UDWVHHDOVR((2&Y/RFDO/RFDO
DGGLWLRQDORIWKHFRPSDQ\jVRXWVWDQGLQJVKDUHVZKLFK RI6KHHW0HWDO:RUNHUVj,QWjO$VVjQ)GG
RSWLRQ KH DOOHJHGO\ DWWHPSWHG WR H[HUFLVH DIWHU KH OHIW WKH &LUDIIjG86KROGLQJWKDWDSDUW\
FRUSRUDWLRQ:KHQ0RFNjVHIIRUWVWRH[HUFLVHWKHRSWLRQZHUH PD\RQO\EHKHOGLQFRQWHPSWRIDFRXUWRUGHULIWKHRUGHU
UHMHFWHGE\WKHFRPSDQ\RQ0D\0RFNILOHGVXLWLQ FOHDUO\ DQG XQDPELJXRXVO\ LPSRVHG DQ REOLJDWLRQ RQ WKH
WKH3XODVNL&LUFXLW&RXUWWRHQIRUFHKLVULJKWVDJDLQVW$2& SDUW\SURRIRIWKHSDUW\jVQRQFRPSOLDQFHZLWKWKHRUGHU
DQGLWVGLUHFWRUV$OWKRXJK0RFNSUHYDLOHGRQKLVFODLPVIRU ZDVFOHDUDQGFRQYLQFLQJDQGWKHSDUW\GLGQRWGLOLJHQWO\
SDVW ZDJHV KLV EUHDFK RI FRQWUDFW DQG RWKHU FODLPV ZHUH DWWHPSW WR FRPSO\ ZLWK WKH RUGHU  $OWKRXJK WKH GLVWULFW
GLVPLVVHGZLWKRXWSUHMXGLFHIRUODFNRIYHQXH0RFNGLHGLQ FRXUWjVRUGHUVGRQRWVSHFLILFDOO\UHIHUWR0F$OSLQLWLV
0DUFK  DQG 'RWWLH 0RFN KLV ZLGRZ DQG WKH SRVVLEOHWRFRQVWUXHWKHPDQGLQSDUWLFXODUWKHSRUWLRQRIWKH
DGPLQLVWUDWUL[ RI KLV HVWDWH UHILOHG KLV EUHDFK RI FRQWUDFW 0DUFKRUGHUSURYLGLQJWKDWmDQ\FRSLHVPDGH>RI
FODLPVDJDLQVW$2&LQ.QR[&RXQW\&LUFXLW&RXUWEXWWKH FRQILGHQWLDO$2&GRFXPHQWV@VKDOODOVREHUHWXUQHGWRWKH
FDVH ZDV GLVPLVVHG LQ $SULO  IRU ODFN RI SURVHFXWLRQ GHIHQGDQWVlDVELQGLQJDOOSDUWLHVWRWKHOLWLJDWLRQQRWMXVW
:KHQ'RWWLH0RFNGLHGRQ6HSWHPEHU0F$OSLQZDV *DKDIHU6HH/XFLOOHY&LW\RI&KLFDJR)G
DSSRLQWHG DGPLQLVWUDWUL[ RI KHU IDWKHUjV HVWDWH DQG KHU WK&LUVWDWLQJWKDWDIHGHUDOFRXUWZLOOHQIRUFHRU
KXVEDQG7LP0F$OSLQZDVODWHUDSSRLQWHGFRDGPLQLVWUDWRU UHWDLQ MXULVGLFWLRQ RYHU D VHWWOHPHQW DJUHHPHQW RQO\ WR WKH
:LWK 7LPjV DVVLVWDQFH 0F$OSLQ UHWDLQHG 'RXJODV & H[WHQW WKDW WKH FRXUWjV MXGJPHQW H[SUHVVO\ RU LPSOLFLWO\
%UDQGRQRQHRIWKHGHIHQGDQWVLQ0F$OSLQjVFXUUHQWOHJDO LQFRUSRUDWHVWKHWHUPVRIWKHDJUHHPHQW+RZHYHUEHFDXVH
PDOSUDFWLFH VXLW LQ )D\HWWH &RXQW\ WR UHSUHVHQW WKH 0RFN mWKHUHDUHIHZSHUVRQVLQDEHWWHUSRVLWLRQWRXQGHUVWDQGWKH
(VWDWHLQLWVFLYLO5,&2VXLWDJDLQVW$2&LQWKHGLVWULFWFRXUW PHDQLQJRIDQRUGHUWKDQWKHGLVWULFWMXGJHZKRRUGHUHG
7KH0RFN(VWDWHZDVDQGUHPDLQVLQVROYHQW$V0F$OSLQ LWlZHZLOOQRWGHFLGHZKHWKHUWKH0DUFKPDQGDWHELQGV
QRWHVLQKHUEULHIEHIRUHWKLVFRXUWWKH(VWDWHjVRQO\DVVHWLV 0F$OSLQ EXW ZLOO LQVWHDG UHPDQG WKH LVVXH WR WKH GLVWULFW
5REHUW0RFNjVDOOHJHGVWRFNRZQHUVKLSLQ$2&DQGKLV FRXUWIRUDGHWHUPLQDWLRQFRQFHUQLQJWKHVFRSHRIWKHRUGHU
DOOHJHGRSWLRQWRDFTXLUHDQDGGLWLRQDORIWKHFRPSDQ\jV 6FHOVD Y &LW\ 8QLY RI 1HZ WKHXQGHUO\LQJ@
3URFHGXUDO+LVWRU\LQWKH'LVWULFW&RXUW ODZVXLWl WKH GLVWULFW MXGJH ZDV LQ WKH mEHVW SRVLWLRQ WR
HYDOXDWH WKH VHWWOHPHQW DJUHHPHQW    DQG ZKHWKHU WKH
0F$OSLQ ILOHG VXLW DJDLQVW $2& LQ WKH GLVWULFW FRXUW RQ 1HXEHUJVZHUHHQWLWOHGWR>UHOLHIWKHUHXQGHU@l
)HEUXDU\$FFRUGLQJWR0F$OSLQ%UDQGRQZKR
RIIHUHGWRWDNHWKHFDVHRQDFRQWLQJHQF\EDVLVDQGWRDGYDQFH ,,,
WKH(VWDWHjVOLWLJDWLRQFRVWVDGYLVHGKHUWKDWWKH(VWDWH
KDG WKH EHVW FKDQFH RI UHFRYHULQJ DJDLQVW $2& LQ D 7KH6XSUHPH&RXUWjVRSLQLRQLQ.RNNRQHQSUHFOXGHVWKH
VKDUHKROGHUGHULYDWLYHVXLWRQEHKDOIRIDQGIRUWKHEHQHILWRI GLVWULFW FRXUW IURP HQIRUFLQJ SRUWLRQV RI WKH 6HWWOHPHQW
$2&WKDWKHZRXOGDVNIRUDWHPSRUDU\UHVWUDLQLQJRUGHU $JUHHPHQWWKDWZHUHQRWH[SUHVVO\LQFRUSRUDWHGLQHLWKHULWV
DQGIRUWKHDSSRLQWPHQWRIDUHFHLYHUXSRQWKHILOLQJRIWKH GLVPLVVDORUGHURULQLWVSULRURUGHUVDJDLQVWWKHSDUWLHV7KH
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

,QWKLVFDVHWKHGLVWULFWFRXUWjVIDLOXUHH[SUHVVO\WRUHWDLQ IHGHUDOFRXUWFRPSODLQWDQGWKDW$2&ZRXOGXOWLPDWHO\
MXULVGLFWLRQRYHUWKH6HWWOHPHQW$JUHHPHQWRUWRLQFRUSRUDWH EHUHVSRQVLEOHIRUWKHSD\PHQWRIDOOIHHVFRVWVDQGH[SHQVHV
PRUHWKDQRQHRIWKHVHWWOHPHQWWHUPVLQLWVGLVPLVVDORUGHU $V HYLGHQFHGE\WKHVWDWHPHQWVLQKHUEULHI0F$OSLQZDV
SUHFOXGHVLWIURPHQIRUFLQJXQLQFRUSRUDWHGWHUPVDJDLQVWWKH ZHOODZDUHWKDW%UDQGRQjVmOLWLJDWLRQVWUDWHJ\lFRQWHPSODWHG
SDUWLHV7KHSRUWLRQVRIWKHGLVWULFWFRXUWjVsDQXDU\DQG WKHmDSSRLQWPHQWRIDUHFHLYHUWRWDNHRYHUWKHDVVHWVUHFRUGV
0D\   RUGHUV GLUHFWLQJ 0F$OSLQ WR FRPSO\ ZLWK DQG RSHUDWLRQV RI $2&l DQG WR mXQFRYHU PRUH UHFHQW
SDUDJUDSKVDQGRIWKH6HWWOHPHQW$JUHHPHQWDUHWKHUHIRUH DFWLRQDEOHRIIHQVHVZLWKWKHOLPLWDWLRQVSHULRGl$SSHOODQWjV
LQYDOLG+RZHYHUWKHGLVWULFWFRXUWPD\RQUHPDQGXSKROG %UDW,QVKRUW0F$OSLQZDVZHOODZDUHWKDWGHVSLWHKHU
WKH SRUWLRQV RI WKH RUGHUV GLUHFWLQJ 0F$OSLQ WR UHWXUQ VWDWHPHQWV WR WKH GLVWULFW FRXUW WKDW D UHFHLYHU VKRXOG EH
FRQILGHQWLDO GRFXPHQWV WR WKH GHIHQGDQWV LI WKH FRXUW DSSRLQWHGVLPSO\WRSUHYHQW$2&IURPGHVWUR\LQJHYLGHQFH
GHWHUPLQHVWKDWLWVUXOLQJVGLUHFWLQJ*DKDIHUWRUHWXUQDOO RUPLVPDQDJLQJDVVHWVWKH(VWDWHSODQQHGWRXVHWKHUHFHLYHU
GRFXPHQWV VHL]HG GXULQJ KLV UHFHLYHUVKLS DOVR ERXQG WRVHL]HDQGVHDUFK$2&jVUHFRUGVLQDQDWWHPSWWRXQFRYHU
0F$OSLQHLWKHUGLUHFWO\RUEHFDXVHVKHZDVFRPSOLFLWLQWKH HYLGHQFH RI DFWLRQDEOH RIIHQVHV WKDW ZHUH QRW EDUUHG E\
UHWHQWLRQRIWKHGRFXPHQWVDWLVVXH 5,&2jVIRXU\HDUVWDWXWHRIOLPLWDWLRQV7RWKLVHQG%UDQGRQ
ILOHGDQH[SDUWHPRWLRQDVNLQJWKHGLVWULFWFRXUWWRLVVXHD
sXULVGLFWLRQWR(QIRUFH3ULRU2UGHUV WHPSRUDU\UHVWUDLQLQJRUGHUDQGWRDSSRLQW0RUULV*DKDIHUD
IRUHQVLF DFFRXQWDQW DV $2&jV UHFHLYHU  7KH PRWLRQ ZDV
$OWKRXJK$UWLFOH,,,OLPLWVDGLVWULFWFRXUWjVMXULVGLFWLRQWR VXSSRUWHG E\ DIILGDYLWV IURP 0F$OSLQ DQG IURP *DKDIHU
HQIRUFHWKHWHUPVRIDVHWWOHPHQWDJUHHPHQWWKHGLVWULFWFRXUW ZKRP%UDQGRQKDGVROLFLWHGDVDSRWHQWLDOUHFHLYHUSULRUWR
DOZD\V KDV MXULVGLFWLRQ WR HQIRUFH  LWV RZQ RUGHUV  6HH ILOLQJ0F$OSLQjVFRPSODLQW
.RNNRQHQ  86 DW  VWDWLQJ WKDW D FRXUW KDV
DQFLOODU\MXULVGLFWLRQWRmPDQDJHLWVSURFHHGLQJVYLQGLFDWHLWV %DVHGRQWKHVXSSRUWLQJDIILGDYLWVWKHGLVWULFWFRXUWLVVXHG
DXWKRULW\DQGHIIHFWXDWHLWVGHFUHHVlDQGWKXVKDVDQFLOODU\ DWHPSRUDU\UHVWUDLQLQJRUGHURQ)HEUXDU\HQMRLQLQJ
MXULVGLFWLRQWRHQIRUFHDVHWWOHPHQWDJUHHPHQWLQFRUSRUDWHGLQ $2&IURPGHVWUR\LQJDOWHULQJDQGRUFRQFHDOLQJGRFXPHQWV
DFRXUWRUGHUEHFDXVHmEUHDFKRIWKHDJUHHPHQWZRXOGEHD DQG IURP GLVSRVLQJ RI FRUSRUDWH DVVHWV  7KH FRXUW DOVR
EUHDFK RI WKH RUGHUl $PHULFDQ 7RZQ &HQWHU Y +DOO  JUDQWHG0F$OSLQjVUHTXHVWWRDSSRLQW*DKDIHUDVUHFHLYHU$W
$VVRFV)GWK&LUUHDIILUPLQJWKH WKHWLPHLWLVVXHGWKHRUGHUDSSRLQWLQJ*DKDIHUWKHGLVWULFW
ZHOOHVWDEOLVKHGUXOHWKDWLIDFRXUWKDVMXULVGLFWLRQRYHUWKH FRXUW EHOLHYHG EDVHG RQ 0F$OSLQjV UHSUHVHQWDWLRQV WKDW
VXEVWDQFH RI D OLWLJDWLRQ LW KDV MXULVGLFWLRQ WR HQIRUFH WKH *DKDIHUjVUHFHLYHUjVERQGVHFXUHGE\2KLR&DVXDOW\LQWKH
MXGJPHQW LW UHQGHUV  7KXV WKH GLUHFWLYHV LQ WKH GLVWULFW DPRXQW RI  ZRXOG VHUYH DV VHFXULW\ SXUVXDQW WR
FRXUWjVsDQXDU\DQG0D\RUGHUVPD\EHXSKHOGWRWKH )HGHUDO 5XOH RI &LYLO 3URFHGXUH F IRU DQ\ FRVWV RU
H[WHQW WKDW WKH\ DUH FRQVLVWHQW ZLWK WKH WHUPV RI DQ\ RUGHU GDPDJHVLQFXUUHGE\$2&ZHUHLWVXEVHTXHQWO\GHWHUPLQHG
LVVXHGE\WKHGLVWULFWFRXUWSULRUWRGLVPLVVDORI0F$OSLQjV WKDWWKHFRPSDQ\KDGEHHQZURQJIXOO\HQMRLQHGRUSODFHGLQ
FDVH
0F$OSLQDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGLQKROGLQJKHU
LQ FRQWHPSW RI LWV  RUGHUV GLUHFWLQJ WKH UHWXUQ RI 
,Q KHU DIILGDYLW LQ VXSSRUW RI KHU PRWLRQ IRU UHFHLYHUVKLS 0F$OSLQ
FRQILGHQWLDOGRFXPHQWVWR$2&EHFDXVHWKRVHRUGHUVZHUH UHTXHVWHG WKDW WKH FRXUW mDSSRLQW D UHFHLYHU WR RYHUVHH WKH GD\ WR GD\
GLUHFWHGRQO\WR*DKDIHUDQGWKDWmHYHQLIWKHRUGHUVFRXOGEH RSHUDWLRQV RI $2& DQG LQVXUH WKDW QR GRFXPHQWV RU UHFRUGV DUH GHVWUR\HG
DOWHUHG RU FRQFHDOHG RU FRUSRUDWH DVVHWV GLVVLSDWHGl
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

UHFHLYHUVKLS,QLWVRUGHUWKHGLVWULFWFRXUWGLUHFWHG8QLWHG VHWWOHPHQWDJUHHPHQWSXUVXDQWWR5XOHEEHFDXVHOLNHWKH
6WDWHV 0DUVKDOV WR DFFRPSDQ\ *DKDIHU WR $2&jV GHIHQGDQWVLQWKLVFDVHWKHPRYLQJSDUWLHVmZHUHQRWUHDOO\
KHDGTXDUWHUVWRVHUYHWKH752ZKLFKZDVWRUHPDLQLQHIIHFW WU\LQJWRUHRSHQWKHGLVPLVVHGVXLWZKLFKZRXOGEHWKHHIIHFW
SHQGLQJ DQ LQMXQFWLRQ KHDULQJ RQ 0DUFK    2Q RID5XOHEPRWLRQVHWWLQJDVLGHWKHILQDOMXGJPHQWl
)HEUXDU\*DKDIHUDFFRPSDQLHGE\IHGHUDOPDUVKDOV EXW ZHUH LQVWHDG WU\LQJ WR JHW WKH MXGJH WR mLQWHUSUHW WKH
DQG DUPHG SULYDWH VHFXULW\ JXDUGV VHUYHG WKH FRXUWjV DJUHHPHQWJLYLQJWKHPWKHEHQHILW>RIWKHLUEDUJDLQ@l,GDW
UHVWUDLQLQJRUGHURQ$2&VHDUFKHGWKHRIILFHVRI$2&DQG VHHDOVR1DWLRQDO3UHVWR,QGXV,QFY'D]H\&RUS
LWV FRGHIHQGDQW * 0 DQG VHL]HG UHFRUGV IURP ERWK )G)HG&LUQRWLQJWKDWDGLVWULFWFRXUW
FRPSDQLHVj RIILFHV  $FFRUGLQJ WR $2& DIWHU WKUHDWHQLQJ UHWDLQV QR LQKHUHQW DXWKRULW\ WR HQIRUFH RU LQWHUSUHW D
$2& HPSOR\HHV ZKHQ WKH HPSOR\HHV REMHFWHG WR WKH VHWWOHPHQWFRQWUDFWWHUPLQDWLQJWKHOLWLJDWLRQ$VWKLVFRXUW
XQDQQRXQFHGVHDUFK*DKDIHUDQGWKHPDUVKDOVOHIW$2&jV KHOGLQ+LQVGDOHY)DUPHUV1DWjO%DQN 7UXVW&R)G
SUHPLVHVLQDYDQFRQWDLQLQJVRPHER[HVRIFRQILGHQWLDO  WK &LU  VHYHQ \HDUV EHIRUH .RNNRQHQ ZDV
FRUSRUDWHGRFXPHQWV$WWKHLQMXQFWLRQKHDULQJRQ0DUFK GHFLGHG D GLVWULFW FRXUW WKDW XQFRQGLWLRQDOO\ GLVPLVVHV DQ
$2&REMHFWHGWRWKHDGHTXDF\RI*DKDIHUjVERQGDQG DFWLRQ ZLWK SUHMXGLFH DQG GRHV QRW DWWHPSW WR UHWDLQ
WR *DKDIHUjV UROH LQ WKH OLWLJDWLRQ H[SUHVVLQJ VLJQLILFDQW MXULVGLFWLRQ WR HQIRUFH WKH SDUWLHVj VHWWOHPHQW DJUHHPHQW
FRQFHUQVUHJDUGLQJ0F$OSLQjVIDLOXUHWRSRVWDQLQMXQFWLRQ FDQQRW HQIRUFH WKH DJUHHPHQW EHFDXVH WKH mXQFRQGLWLRQDO
ERQG WKH VFRSH RI *DKDIHUjV SRZHU DV UHFHLYHU DQG WKH GLVPLVVDO ZLWK SUHMXGLFH WHUPLQDWH>V@ WKH GLVWULFW FRXUWjV
PDQQHULQZKLFK*DKDIHUDQGWKH0DUVKDOVVHUYHGWKH752 MXULVGLFWLRQH[FHSWIRUWKHOLPLWHGSXUSRVHRIUHRSHQLQJDQG
DQGVHL]HG$2&jVDQG* 0jVFRUSRUDWHUHFRUGV*DKDIHU VHWWLQJ DVLGH WKH MXGJPHQW RI GLVPLVVDO ZLWKLQ WKH VFRSH
UHVSRQGHGWR$2&jVREMHFWLRQVE\VXEPLWWLQJWRWKHFRXUWKLV DOORZHGE\5XOHEl,GDWHPSKDVLVDGGHG
m)LUVW ,QWHULP 5HFHLYHUVKLS 5HSRUWl DQG E\ UHTXHVWLQJ DQ
RUGHUDSSURYLQJKLVIHHVDQGH[SHQVHV ,QDGGLWLRQWRWKHVXEVWDQWLYHSUREOHPVDVVRFLDWHGZLWKWKH
GLVWULFWFRXUWjVUHOLDQFHRQ5XOHEDVWKHEDVLVIRUDQFLOODU\
8SRQ UHDOL]LQJ WKDW GHVSLWH 0F$OSLQjV UHSUHVHQWDWLRQV MXULVGLFWLRQRYHUWKH6HWWOHPHQW$JUHHPHQWWKHGHIHQGDQWVj
*DKDIHUjVERQGZDVQRWDWUXHLQMXQFWLRQERQGEXWVHUYHGRQO\ IDLOXUH WR PRYH WKH GLVWULFW FRXUW IRU UHOLHI SXUVXDQW WR WKH
WR LQGHPQLI\ $2& IRU GDPDJHV UHVXOWLQJ IURP *DKDIHUjV 5XOHWKHGHIHQGDQWVEURXJKWWKHLUPRWLRQIRUFRQWHPSWDQG
IDLOXUH SURSHUO\ WR DFFRXQW IRU IXQGV WKDW FDPH LQWR KLV IRUHQIRUFHPHQWRIWKH$JUHHPHQWSXUVXDQWWR)HGHUDO5XOHRI
SRVVHVVLRQDV$2&jVUHFHLYHUWKHGLVWULFWFRXUWRQ0DUFK &LYLO 3URFHGXUH  XQGHUPLQHV WKH GLVWULFW FRXUWjV
LQWHUSUHWDWLRQRI5XOHELQLWVsDQXDU\RUGHU6HH)HG
5 &LY 3 E VWDWLQJ WKDW UHOLHI PXVW EH VRXJKW mRQ

PRWLRQl E\ WKH DJJULHYHG SDUW\ .DOW Y +XQWHU  )G
7KH FRXUW VXEVHTXHQWO\ GLVFRYHUHG WKDW *DKDIHUjV ERQG ZDV SRVWHG WK&LUUHIXVLQJWRJUDQWUHOLHISXUVXDQW
RQO\ DV VHFXULW\ IRU DQ\ GDPDJHV WKDW $2& PLJKW VXVWDLQ DV D UHVXOW RI WR5XOHEEHFDXVHWKHSDUW\VHHNLQJHQIRUFHPHQWRIWKH
*DKDIHUjV IDLOXUH SURSHUO\ WR DFFRXQW IRU IXQGV WKDW FDPH LQWR KLV
VHWWOHPHQWDJUHHPHQWmGLGQRWVHHN5XOHEUHOLHIlEXW
LQVWHDGSOHGDQmLQGHSHQGHQWDFWLRQVHHNLQJHTXLWDEOHUHOLHIl
SRVVHVVLRQ DV WKH FRPSDQ\jV UHFHLYHU


7KH UHSRUW VWDWHG DPRQJ RWKHU WKLQJV WKDW $2&jV UHFRUGV
ZLWKRXWmVDWLVI>\LQJ@KLVEXUGHQRIHVWDEOLVKLQJIHGHUDOFRXUW
HYLGHQFHG 5REHUW 0RFNjV RZQHUVKLS RI  VKDUHV RI $2& VWRFN DQG WKDW MXULVGLFWLRQlFLWLQJ.RNNRQHQ86DW
$2& DSSHDUHG WR KDYH HQJDJHG LQ VRPH LQWHUHVWHG WUDQVDFWLRQV EXW WKDW
*DKDIHU QHHGHG WR UHYLHZ DGGLWLRQDO ZLWQHVVHV DQG LQWHUYLHZ FHUWDLQ $2&
PDQDJHPHQW HPSOR\HHV WR GHWHUPLQH WKH H[WHQW RI DQ\ ZURQJGRLQJ
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

)HG5&LY3E LVVXHGDQRUGHUGLUHFWLQJ0F$OSLQWRSRVWDVXUHW\ERQG
LQWKHDPRXQWRIQRODWHUWKDQSPWKDWGD\
$VWKH6XSUHPH&RXUWDFNQRZOHGJHGLQ.RNNRQHQVRPH 7KHFRXUWDOVRGLUHFWHG*DKDIHUWRVXEPLWDSURSRVHGRUGHU
FLUFXLWVKDYHKHOGWKDWDGLVPLVVHGVXLWFDQEHUHRSHQHGXQGHU FODULI\LQJ KLV GXWLHV LQ WKH OLWLJDWLRQ  7KH GLVWULFW FRXUW
)HGHUDO5XOHRI&LYLO3URFHGXUHEE\UHDVRQRIEUHDFK H[WHQGHGWKH752XQWLO0DUFKDQGRUGHUHG*DKDIHU
RIWKHDJUHHPHQWWHUPLQDWLQJWKHOLWLJDWLRQ6HH.RNNRQHQ WR VXEPLW D EDODQFH VKHHW GHWDLOLQJ $2&jV DVVHWV DQG
86DW+RZHYHUWKH&RXUWZHQWRQWRREVHUYHWKDW OLDELOLWLHV$WDKHDULQJRQ0DUFKWKHGLVWULFWFRXUW
m>H@QIRUFHPHQW RI >D@ VHWWOHPHQW DJUHHPHQW    ZKHWKHU ZDVLQIRUPHGWKDW0F$OSLQKDGQRWSRVWHGWKHUHTXLUHGVXUHW\
WKURXJKDZDUGRIGDPDJHVRUGHFUHHRIVSHFLILFSHUIRUPDQFH ERQG DV GLUHFWHG E\ WKH FRXUWjV 0DUFK  RUGHU DQG WKDW
LVPRUHWKDQMXVWDFRQWLQXDWLRQRUUHQHZDORIWKHGLVPLVVHG *DKDIHU KDG QRW SUHSDUHG D EDODQFH VKHHW  ,Q UHVSRQVH WR
VXLWDQGKHQFHUHTXLUHVLWVRZQEDVLVIRUMXULVGLFWLRQl,ELG 0F$OSLQjVIDLOXUHWRSRVWERQGDQGWRTXHVWLRQVFRQFHUQLQJ
HPSKDVLVDGGHG,QWKLVFDVHWKHGLVWULFWFRXUWVRXJKWWR *DKDIHUjVGXWLHVDQGTXDOLILFDWLRQVDVUHFHLYHUsXGJH+RRG
HQIRUFHVSHFLILFSURYLVLRQVRIWKH6HWWOHPHQW$JUHHPHQWE\ LVVXHG DQ RUGHU GDWHG 0DUFK   LQ ZKLFK KH
KROGLQJ0F$OSLQLQFRQWHPSWRIFRXUWDQGE\RUGHULQJKHUWR GLVVROYHGWKH7HPSRUDU\5HVWUDLQLQJ2UGHUGHQLHG
SHUIRUPVSHFLILFDFWV7KHGLVWULFWFRXUWjVFRQWHPSWRUGHUZDV 0F$OSLQjVPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQJUDQWHG
FOHDUO\ mPRUH WKDQ MXVW D FRQWLQXDWLRQ RU UHQHZDO RI WKH *DKDIHUjV PRWLRQ IRU DSSURYDO DQG SD\PHQW RI FRVWV
GLVPLVVHGVXLWlDQGDIILUPLQJWKHGLVWULFWFRXUWjVUHOLDQFHRQ GLUHFWHG0F$OSLQWRSD\*DKDIHUjVIHHVDQGFRVWVWRWDOLQJ
5XOH E ZRXOG FUHDWH DQ H[FHSWLRQ WR WKH KROGLQJ LQ DVRI0DUFKDORQJZLWKDQ\DGGLWLRQDO
.RNNRQHQ WKDW ZRXOG VZDOORZ WKH UXOH JLYLQJ WKH GLVWULFW IHHV RU FKDUJHV WKHUHDIWHU LQFXUUHG  GLVVROYHG WKH
FRXUW WKH W\SH RI EURDG HQIRUFHPHQW MXULVGLFWLRQ WKDW WKH UHFHLYHUVKLS DQG UHOLHYHG *DKDIHU RI DQ\ IXUWKHU
.RNNRQHQ &RXUW UHVHUYHG WR FRXUWV WKDW HLWKHU VSHFLILFDOO\ UHVSRQVLELOLWLHVDVUHFHLYHUGLUHFWHG*DKDIHUjVFRXQVHOWR
UHWDLQMXULVGLFWLRQWRHQIRUFHDVHWWOHPHQWDJUHHPHQWRUWKDW UHWDLQ DOO FRSLHV RI *DKDIHUjV )LUVW ,QWHULP 5HSRUW DQG
H[SUHVVO\LQFRUSRUDWHWKHWHUPVRIWKHDJUHHPHQWLQDYDOLG RUGHUHG*DKDIHUQRWWRGLVFORVHWRDQ\RQHRWKHUWKDQKLV
DQGHQIRUFHDEOHRUGHU,ELG DWWRUQH\DQ\LQIRUPDWLRQKHREWDLQHGLQKLVFDSDFLW\DV$2&jV
UHFHLYHU
&RQWUDU\WRWKHGHIHQGDQWVjDVVHUWLRQWKHGHWHUPLQDWLRQE\
VRPHFRXUWVWKDWmUHSXGLDWLRQRIDVHWWOHPHQWDJUHHPHQW 2Q0D\*DKDIHUPRYHGWKHGLVWULFWFRXUWWRDOWHU
WKDWWHUPLQDWH>V@OLWLJDWLRQSHQGLQJEHIRUHDFRXUWFRQVWLWXWHV RUDPHQGWKH0DUFKRUGHUWRSURYLGHWKDW0F$OSLQZRXOG
DQH[WUDRUGLQDU\FLUFXPVWDQFHlMXVWLI\LQJUHOLHIXQGHU5XOH
EDQGWKDW.RNNRQHQSHUPLWVSDUWLHVWRmUHYLYHD
VXLW XQGHU 5XOH E ZKHQ D VHWWOHPHQW DJUHHPHQW KDV 
0F$OSLQ H[SODLQV LQ KHU EULHI RQ DSSHDO WKDW VKH ZDV XQDEOH WR
EHHQEUHDFKHGl/HDOY7RZQRI&LFHUR:/ REWDLQ WKH ERQG EHFDXVH WKH 0RFN (VWDWHjV RQO\ DVVHW o LWV DOOHJHG VWRFN
1',OODW
FLWLQJ.HHOLQJY6KHHW0HWDO:RUNHUV,QWjO RZQHUVKLS LQ $2& o ZDV DW WKH PRVW ZRUWK  DQ DPRXQW

$VVRF  )G   WK &LU  LV VLPSO\ QRW LQVXIILFLHQW WR FRYHU WKH REOLJDWLRQ RQ D  ERQG 0F$OSLQ EODPHV
VXSSRUWHG E\ .RNNRQHQjV WH[W RU WKH PDQQHU LQ ZKLFK WKH KHU DWWRUQH\ IRU KHU IDLOXUH WR REWDLQ WKH ERQG DOOHJLQJ WKDW KDG m%UDQGRQ
QRW FKRVHQ WR UHO\ RQ WKH TXHVWLRQDEOH $2& ILQDQFLDO VWDWHPHQWV DQG   
IHGHUDO FRXUWV RI DSSHDOV KDYH DSSOLHG WKH FDVH  6HH LQVWHDG XQGHUWDNHQ DQ\ GXH GLOLJHQFH WR LQYHVWLJDWH DQGRU REWDLQ DQ\
.RNNRQHQ86DW1HXEHUJ)GDW,Q LQGHSHQGHQW YDOXDWLRQV RI MXVW WKH UHDO HVWDWH RZQHG E\ $2&l D ERQG
1HXEHUJ IRU H[DPSOH WKH 6HYHQWK &LUFXLW DIILUPHG WKH ZRXOG KDYH EHHQ LVVXHG EHFDXVH WKH LQVXUHUV 0F$OSLQ FRQWDFWHG UHIXVHG
GLVWULFW FRXUWjV UHIXVDO WR LQWHUSUHW RU HQIRUFH WKH SDUWLHVj WR LVVXH D ERQG EDVHG RQ WKH DOOHJHG YDOXH RI WKH 0RFN (VWDWHjV VWRFN LQ
$2& DV UHIOHFWHG LQ $2&jV 0DUFK  ILQDQFLDO VWDWHPHQW
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

EHKHOGLQFRQWHPSWLIVKHFRQWLQXHGWRZLWKKROGSD\PHQWRI FRQWHPSWVDQFWLRQVDJDLQVWWKHDSSHOOHHLPPHGLDWHO\mDVKH
KLVIHHV0F$OSLQILOHGDUHVSRQVHVWDWLQJWKDWWKH(VWDWHZDV ZRXOG KDYH EHHQ DEOH WR KDG WKH GLVWULFW FRXUW UHWDLQHG
LQVROYHQW DQG WKDW *DKDIHUjV IHHV VKRXOG EH WD[HG DJDLQVW MXULVGLFWLRQ RU LQFRUSRUDWHG WKH >SDUWLHVj@ VHWWOHPHQW
$2&DQGLWVFRGHIHQGDQWV0F$OSLQWKHUHDIWHUVRXJKWLQ DJUHHPHQWLQWRWKHRUGHURIGLVPLVVDOl
VSLWH RI WKH GLVWULFW FRXUWjV 0DUFK  RUGHU WR REWDLQ
*DKDIHUjV)LUVW,QWHULP5HSRUWDQGWRREWDLQGRFXPHQWVWKDW ,WLVZHOOVHWWOHGWKDWm>W@KHPHUHUHIHUHQFHLQ>DGLVPLVVDO@
*DKDIHUVHL]HGGXULQJKLVUHFHLYHUVKLSE\ILOLQJD1RWLFHRI RUGHUWR>DVHWWOHPHQW@$JUHHPHQWGRHVQRWLQFRUSRUDWHWKH
'HSRVLWLRQDQG6XESRHQD'XFHV7HFXPFRPSHOOLQJ*DKDIHU $JUHHPHQWLQWRWKHRUGHUl6FHOVDY&LW\8QLYHUVLW\RI1HZ
WRWHVWLI\DWDGHSRVLWLRQRQsXQH2QsXQH V@ DXWKRULW\ WR HQIRUFH WKH $JUHHPHQW RU
*DKDIHUjV UHFHLYHUVKLS DQG WKH WHPSRUDU\ UHVWUDLQLQJ RUGHU LQFRUSRUDWH>V@WKH$JUHHPHQWLQWRWKHRUGHUl%HFDXVHWKLV
DJDLQVW$2& FRXUWKDVMRLQHGRWKHUFLUFXLWVLQVWULFWO\DSSO\LQJ.RNNRQHQjV
UHODWLYHO\QDUURZLQWHUSUHWDWLRQRIDGLVWULFWFRXUWjVDQFLOODU\
,QLWVsXO\RUGHUWKHGLVWULFWFRXUWDOVRGHFOLQHGWRWD[ MXULVGLFWLRQ WR HQIRUFH VHWWOHPHQW DJUHHPHQWV WHUPLQDWLQJ
*DKDIHUjVIHHVDJDLQVW$2&QRWLQJWKDWLWKDGPDGHLWmYHU\ OLWLJDWLRQWKHGLVWULFWFRXUWjVLQFRUSRUDWLRQLQLWVGLVPLVVDO
FOHDUlLQLWV0DUFKRUGHUWKDW0F$OSLQZDVUHVSRQVLEOHIRU RUGHURIRQO\DVLQJOHWHUPRIWKHSDUWLHVjSDJHVHWWOHPHQW
SD\LQJ*DKDIHUjVIHHV7KHGLVWULFWFRXUWGHQLHG*DKDIHUjV DJUHHPHQWLVLQVXIILFLHQWWRVXSSRUWWKHFRXUWjV H[HUFLVHRI
PRWLRQIRUDVKRZFDXVHRUGHURQWKHEDVLVWKDWLWZRXOGEH DQFLOODU\MXULVGLFWLRQRYHUWKHHQWLUHDJUHHPHQW
XQIDLUWRSXQLVK0F$OSLQIRUIDLOLQJWRSD\*DKDIHUEHIRUHWKH
FRXUW UXOHG RQ KHU PRWLRQ WR DPHQG LWV 0DUFK  RUGHU 1RUFDQ5XOHEEHXVHGWRVXSSRUWWKHGLVWULFWFRXUWjV
+RZHYHUKDYLQJGHQLHG0F$OSLQjVPRWLRQWRDPHQGsXGJH DWWHPSWWRHQIRUFHSURYLVLRQVRIWKHVHWWOHPHQWDJUHHPHQWQRW
+RRGRQsXO\GLUHFWHGKHUQRWWRGHOD\DQ\IXUWKHUDQGWR H[SUHVVO\LQFRUSRUDWHGLQWKHGLVPLVVDORUGHU5HOLHIIURPD
SD\*DKDIHUjVIHHVZLWKLQWHQGD\V7KHFRXUWWKHQVXVWDLQHG ILQDOMXGJPHQWXQGHU5XOHELVDQmH[WUDRUGLQDU\UHPHG\
*DKDIHUjVPRWLRQIRUDSURWHFWLYHRUGHUTXDVKHG0F$OSLQjV WKDWLVJUDQWHGRQO\LQH[FHSWLRQDOFLUFXPVWDQFHVl'LFNHUVRQ
VXESRHQDKHOGWKDW0F$OSLQFRXOGQRWGHSRVH*DKDIHUDQG Y%RDUGRI(GXFRI)RUG+HLJKWV)GWK
KHOG WKDW *DKDIHU ZRXOG QRW EH UHTXLUHG WR SURGXFH DQ\ &LUVHHDOVR1HXEHUJ)GDWQRWLQJWKDW
GRFXPHQWRUWRUHVSRQGWRDQ\GLVFRYHU\LQFRQQHFWLRQZLWK m>Q@RWKLQJ LQ .RNNRQHQ SXUSRUWV WR FKDQJH WKH VWULQJHQW
0F$OSLQjV VXLW DJDLQVW $2&  ,Q DGGLWLRQ WR JUDQWLQJ VWDQGDUGV WKDW JRYHUQ WKH DYDLODELOLW\ RI UHOLHI XQGHU 5XOH
*DKDIHUjV PRWLRQ IRU D SURWHFWLYH RUGHU WKH FRXUW JUDQWHG El5XOHSURYLGHVLQSHUWLQHQWSDUW
$2&jV PRWLRQ WR DPHQG WKH FRXUWjV 0DUFK  RUGHU
GLVVROYLQJ WKH UHFHLYHUVKLS WR UHIOHFW WKH FRXUWjV 0DUFK  E0LVWDNHV,QDGYHUWHQFH([FXVDEOH1HJOHFW1HZO\
UXOLQJWKDW 'LVFRYHUHG(YLGHQFH)UDXG(WF2QPRWLRQDQGXSRQ
VXFKWHUPVDVDUHMXVWWKHFRXUWPD\UHOLHYHDSDUW\RUD
7KH5HFHLYHUVKDOOUHWXUQDOOGRFXPHQWVWDNHQIURPWKH SDUW\jVOHJDOUHSUHVHQWDWLYHIURPDILQDOMXGJPHQWRUGHU
GHIHQGDQWVjSUHPLVHVWKH5HFHLYHUVKDOOQRWGLVFORVH RUSURFHHGLQJIRU DQ\RWKHUUHDVRQMXVWLI\LQJ
UHOLHIIURPWKHRSHUDWLRQRIWKHMXGJPHQW
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

GLUHFWLQJWKDWDOOGRFXPHQWVVHL]HGE\*DKDIHUEHUHWXUQHGWR DQ\GRFXPHQWRUSRUWLRQWKHUHRIWRDQ\RQHDQGDQ\
$2&  +RZHYHU WKLV FRXUW KDV MRLQHG RWKHU FLUFXLWV LQ FRSLHVPDGHVKDOODOVREHUHWXUQHGWRWKHGHIHQGDQWV
VWULFWO\DSSO\LQJWKHKROGLQJLQ.RNNRQHQ7KXVWKHGLVWULFW
FRXUWjVLQFRUSRUDWLRQLQLWVGLVPLVVDORUGHURIRQO\RQHWHUP 0F$OSLQIDLOHGWRSD\*DKDIHUjVIHHVZLWKLQGD\VRIWKH
RI WKH 6HWWOHPHQW $JUHHPHQW ZKLFK WHUP GRHV QRW RQ LWV GLVWULFWFRXUWjVsXO\RUGHUDQGRQsXO\*DKDIHU
IDFH DSSO\ GLUHFWO\ WR 0F$OSLQ LV LQVXIILFLHQW WR FRQIHU PRYHGWRKROG0F$OSLQLQFRQWHPSW*DKDIHUDOVRUHTXHVWHG
MXULVGLFWLRQRYHUWKHHQWLUHDJUHHPHQW,Q&DXGLOOY1RUWK WKDWWKHFRXUWGLYHVWWKH0RFN(VWDWH RI DQ\LQWHUHVWLQRU
$PHULFDQ0HGLD&RUS)GWK&LUWKLV FODLPRIRZQHUVKLSWRWKHFRUSRUDWHVWRFNRI$2&DQGYHVW
FRXUWMRLQHGWKH7KLUGDQG(LJKWK&LUFXLWVLQKROGLQJWKDWDQ VXFKULJKWWLWOHLQWHUHVWRUFODLPLQKLP,QWKHDOWHUQDWLYH
RUGHUGLVPLVVLQJDFDVHmSXUVXDQWWRWKHWHUPVRIWKHSDUWLHVj *DKDIHUPRYHGWKHGLVWULFWFRXUWWRLVVXHDZULWRIDWWDFKPHQW
VHWWOHPHQWDJUHHPHQWlGRHVQRWSURYLGHDGLVWULFWFRXUWZLWK RU VHTXHVWUDWLRQ DJDLQVW WKH 0RFN (VWDWHjV RQO\ DVVHW o LWV
DQFLOODU\ MXULVGLFWLRQ WR HQIRUFH WKH DJUHHPHQW XQGHU DOOHJHG RZQHUVKLS LQWHUHVW LQ $2& o LQ RUGHU WR HIIHFW
.RNNRQHQ6HHLGDWVWDWLQJWKDWm>W@KHSKUDVHµSXUVXDQW FRPSOLDQFHZLWKWKHFRXUWjVsXO\RUGHU0F$OSLQILOHGD
WRWKHWHUPVRIWKH6HWWOHPHQWjIDLOVWRLQFRUSRUDWHWKHWHUPV UHVSRQVHRQ$XJXVWVWDWLQJWKDWWKH0RFN(VWDWH
RIWKH6HWWOHPHQW$JUHHPHQWLQWRWKHRUGHUlTXRWLQJ,QUH ZDVLQVROYHQWDQGWKDWLWZRXOGEHLQDSSURSULDWHIRUWKHFRXUW
3KDU0RU,QF6HFXULWLHV/LWLJDWLRQ)GG WRKROGLWLQFRQWHPSW0F$OSLQjVFRXQVHOWKHQSURSRVHGWKDW
&LU   TXRWLQJ 0HLQHU Y 0LVVRXUL 'HSjW RI 0HQWDO WKH FRXUW UHTXLUH $2& WR UHLVVXH  RI WKH  VKDUHV RI
+HDOWK)GWK&LU,Q&DXGLOOWKLV $2&VWRFNDOOHJHGO\RZQHGE\WKH0RFN(VWDWHWR*DKDIHUWR
FRXUWIODWO\UHMHFWHGWKHGLVWULFWFRXUWjVDWWHPSWWRGLVWLQJXLVK VHFXUH KLV IHHV DQG WKDW $2& UHPLW WKH UHPDLQLQJ 
.RNNRQHQDQGHQIRUFHWKHSDUWLHVjVHWWOHPHQWDJUHHPHQWRQ VKDUHVWRWKH(VWDWH
WKHEDVLVWKDWLWVILQDORUGHUGLVPLVVHGWKHFDVHmSXUVXDQWWR
WKHWHUPVRIWKHSDUWLHVjDJUHHPHQWlZKHUHDVWKHGLVPLVVDO 2Q6HSWHPEHUWKHGLVWULFWFRXUWILOHGDQH[WHQVLYH
RUGHULQ.RNNRQHQmGLGQRWVRPXFKDVUHIHUWRWKHVHWWOHPHQW RUGHUGLVPLVVLQJ0F$OSLQjVVXLWRQWKHPHULWVDQGGLVSRVLQJ
DJUHHPHQWl&DXGLOO)GDW$2&jVILUVWDUJXPHQW RIWKHSDUWLHVjSHQGLQJPRWLRQV,QWKH6HSWHPEHURUGHUWKH
LQVXSSRUWRIWKHGLVWULFWFRXUWjVMXULVGLFWLRQKDVWKXVDOUHDG\ GLVWULFW FRXUW  GLVPLVVHG ZLWK SUHMXGLFH DV WLPHEDUUHG
EHHQUHMHFWHGLQWKLVFLUFXLW6HHLELGVHHDOVR'RZQH\Y 0F$OSLQjV FLYLO 5,&2 FODLPV  GHFOLQHG WR H[HUFLVH
&ODXGHU)GWK&LUILQGLQJEDVHGRQ VXSSOHPHQWDOMXULVGLFWLRQRYHU0F$OSLQjVUHPDLQLQJVWDWHODZ
D VWULFW DSSOLFDWLRQ RI WKH KROGLQJ LQ .RNNRQHQ WKDW WKH FODLPVGHQLHGDVPRRW$2&jVPRWLRQWRWUDQVIHUYHQXH
GLVWULFW FRXUW ODFNHG MXULVGLFWLRQ WR HQIRUFH WKH SDUWLHVj DQG0F$OSLQjVPRWLRQIRUOHDYHWRILOHKHUUHVSRQVHRXWRI
VHWWOHPHQWDJUHHPHQWEHFDXVHLWIDLOHGVSHFLILFDOO\WRmUHWDLQ WLPHDQGVFKHGXOHGDKHDULQJIRU6HSWHPEHUWR
MXULVGLFWLRQRYHUHQIRUFHPHQWRIWKHDJUHHPHQWZKHQHQWHULQJ FRQVLGHU*DKDIHUjVPRWLRQWRKROG0F$OSLQLQFRQWHPSWRI
MXGJPHQWl)XWHUQLFNY6XPSWHU7RZQVKLS)G WKHFRXUWjVRUGHUGLUHFWLQJKHUWRSD\*DKDIHUjVIHHV7KH
WK &LU  QRWLQJ WKDW WKH DSSHOODQW FRXOG QRW VHHN GLVWULFW FRXUW QHYHU UXOHG RQ *DKDIHUjV FRQWHPSW PRWLRQ
KRZHYHU EHFDXVH WKH SDUWLHV ZKR KDG EHHQ HQJDJHG LQ
VHWWOHPHQWQHJRWLDWLRQVVLQFH0D\H[HFXWHGDILQDO

$OWKRXJK WKH VWDWHPHQW LQ WKH FRXUWjV 0DUFK   FRQFHUQLQJ
WKH UHWXUQ RI FRQILGHQWLDO GRFXPHQWV WR $2& LV GLUHFWHG SULPDULO\ DW
*DKDIHU WKH SRUWLRQ RI WKH RUGHU GLUHFWLQJ WKDW mDQ\ FRSLHV PDGH VKDOO 
DOVR EH UHWXUQHG WR WKH GHIHQGDQWVl LV ZULWWHQ LQ WKH SDVVLYH YRLFH DQG *DKDIHUjV )LUVW ,QWHULP 5HSRUW UHIHUV WR FRUSRUDWH GRFXPHQWV
FRXOG SRVVLEO\ EH FRQVWUXHG WR ELQG 0F$OSLQ 6HH LQIUD S  HYLGHQFLQJ 5REHUW 0RFNjV RZQHUVKLS RI  VKDUHV RI $2& VWRFN
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

VHWWOHPHQW DJUHHPHQW GLVSRVLQJ RI WKH OLWLJDWLRQ RQ E\DVLQJOHFRXUWRIFODLPVWKDWDUHLQYDU\LQJUHVSHFWVDQG
6HSWHPEHU    0F$OSLQ EHJDQ WKH QHJRWLDWLRQV E\ GHJUHHVIDFWXDOO\LQWHUGHSHQGHQWDQGWRHQDEOHDFRXUWWR
GHPDQGLQJLQH[FKDQJHIRUWKHUHOHDVHRIDOOKHU IXQFWLRQ VXFFHVVIXOO\ WKDW LV WR PDQDJH LWV SURFHHGLQJV
FODLPV DJDLQVW $2&  $V 0F$OSLQ H[SODLQV LQ KHU EULHI YLQGLFDWHLWVDXWKRULW\DQGHIIHFWXDWHLWVGHFUHHVlFLWDWLRQV
KRZHYHU mIROORZLQJ WKH HQWU\ RI WKH 6HSWHPEHU   RPLWWHG  $V WKH &RXUW REVHUYHG LQ UHMHFWLQJ WKH GLVWULFW
2UGHU%UDQGRQFRQYLQFHG>KHUDQGKHUKXVEDQG@WKDWWKH\ FRXUWjV DWWHPSWWRHQIRUFHWKHVHWWOHPHQWDJUHHPHQWRQWKH
KDG QR DOWHUQDWLYH EXW WR VHWWOH WKHLU FODLPV IRU HVVHQWLDOO\ EDVLV WKDW LW KDG DQFLOODU\ MXULVGLFWLRQ WR mSURWHFW LWV
ZKDWHYHU DPRXQW WKH 'HIHQGDQWV ZHUH ZLOOLQJ WR SD\l SURFHHGLQJVDQGYLQGLFDWHLWVDXWKRULW\l
EHFDXVHLIWKH\GLGQRWVHWWOH*DKDIHUZRXOGSURFHHGZLWKKLV
PRWLRQIRUFRQWHPSWDQGWKHHVWDWHZRXOGORVHDOORILWVVWRFN >7@KHRQO\>UHOHYDQW@RUGHU>LVVXHGE\WKHGLVWULFWFRXUW@
LQ$2& ZDVWKDWWKHVXLWEHGLVPLVVHGDGLVSRVLWLRQWKDWLVLQQR
ZD\ IORXWHG RU LPSHULOHG E\ WKH DOOHJHG EUHDFK RI WKH
3XUVXDQWWRWKH6HWWOHPHQW$JUHHPHQW0XWXDO5HOHDVHDQG VHWWOHPHQW DJUHHPHQW  7KH VLWXDWLRQ ZRXOG EH TXLWH
&RYHQDQW1RWWR6XHH[HFXWHGRQ6HSWHPEHU$2& GLIIHUHQW LI WKH SDUWLHVj REOLJDWLRQ WR FRPSO\ ZLWK WKH
SDLG0F$OSLQDWRWDORIRIZKLFKZHQWWR WHUPVRIWKHVHWWOHPHQWDJUHHPHQWKDGEHHQPDGHSDUWRI
*DKDIHU  RI ZKLFK ZHQW WR %UDQGRQ IRU IHHV DQG WKH RUGHU RI GLVPLVVDO o HLWKHU E\ VHSDUDWH SURYLVLRQ
RIZKLFKZHQWWRWKH0RFN(VWDWH%RWK0F$OSLQ VXFK DV D SURYLVLRQ mUHWDLQLQJ MXULVGLFWLRQl RYHU WKH
DQG KHU KXVEDQG SHUVRQDOO\ LQLWLDOHG HDFK SDJH RI WKH VHWWOHPHQWDJUHHPHQWRUE\LQFRUSRUDWLQJWKHWHUPVRI
6HWWOHPHQW$JUHHPHQWZKLFKSURYLGHGLQSHUWLQHQWSDUWWKDW WKHVHWWOHPHQWDJUHHPHQWLQWKHRUGHU,QWKDWHYHQWD
EUHDFK RI WKH DJUHHPHQW ZRXOG EH D YLRODWLRQ RI WKH
*DKDIHUDQGWKH3ODLQWLIIVZDUUDQWDQGUHSUHVHQWWRWKH RUGHUDQGDQFLOODU\MXULVGLFWLRQWRHQIRUFHWKHDJUHHPHQW
'HIHQGDQWV WKDW WKH\ KDYH UHWXUQHG DQ\ DQG DOO ZRXOGWKHUHIRUHH[LVW7KDWKRZHYHUZDVQRWWKHFDVH
GRFXPHQWV LQFOXGLQJ FRSLHV WKHUHRI ZKLFK ZHUH KHUH7KHMXGJHjVPHUHDZDUHQHVVDQGDSSURYDORIWKH
REWDLQHGDVWKHUHVXOWRIWKHSHUIRUPDQFHRI*DKDIHUjV WHUPVRIWKHVHWWOHPHQWDJUHHPHQWGRQRWVXIILFHWRPDNH
GXWLHVDVUHFHLYHU6LPXOWDQHRXVO\ZLWKWKHH[HFXWLRQ WKHPSDUWRIKLVRUGHU
RI WKLV $JUHHPHQW *DKDIHU DQG WKH 3ODLQWLIIV KDYH
H[HFXWHG DQ $JUHHG 2UGHU SURYLGLQJ WKDW DQ\ DQG DOO ,GDWQRWLQJWKDWZKHQDFDVHLVGLVPLVVHGSXUVXDQW
FRSLHV RI WKH 5HFHLYHUjV )LUVW ,QWHULP 5HSRUW ZLOO EH WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH D mWKH SDUWLHVj
GHOLYHUHG WR WKH 'HIHQGDQWV E\ *DKDIHU DQGRU KLV FRPSOLDQFHZLWKWKHWHUPVRIWKHVHWWOHPHQWFRQWUDFWRUWKH
DWWRUQH\V  7KH 3ODLQWLIIV DJUHH WR UHWXUQ WR WKH FRXUWjVµUHWHQWLRQRIMXULVGLFWLRQjRYHUWKHVHWWOHPHQWFRQWUDFW
'HIHQGDQWV DQ\ DQG DOO GRFXPHQWV ZKLFK WKH\ KDYH PD\LQWKHFRXUWjVGLVFUHWLRQEHRQHRIWKHWHUPVVHWIRUWKLQ
FRQFHUQLQJ$2&DQGRULWVRSHUDWLRQV WKHRUGHUl
7KH3ODLQWLIIVDQG*DKDIHUDJUHHWKDWIURPDQGDIWHUWKH 2IFRXUVHWKHIDFWVLQWKLVFDVHVXSSRUWWKHGLVWULFWFRXUWjV
GDWH RI WKLV $JUHHPHQW WKH\ DQG DQ\RQH FODLPLQJ H[HUFLVHRIMXULVGLFWLRQWRDJUHDWHUH[WHQWWKDQGLGWKHIDFWVDW
WKURXJKWKHPZLOOIRUHYHUUHIUDLQIURPPDNLQJDQ\FODLP LVVXH LQ .RNNRQHQ  ,Q WKLV FDVH XQOLNH LQ .RNNRQHQ WKH
RUGHPDQGRUILOLQJDQ\FODLPLQDQ\IRUPRUEHIRUHDQ\ GLVWULFWFRXUWjVRUGHURIGLVPLVVDOGLGPHQWLRQWKHVHWWOHPHQW
FRXUW RU DGPLQLVWUDWLYH DJHQF\ WKDW L 5REHUW 0RFN RU DJUHHPHQW DQG QRQFRPSOLDQFH ZLWK WKH DJUHHPHQW ZRXOG
DQ\RQHFODLPLQJWKURXJKKLPLVRUZDVDVKDUHKROGHURI DUJXDEO\ mIORXW>@ DQG LPSHULO>@l WKH GLVWULFW FRXUWjV RUGHUV
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

XVHG WR SURYLGH D SDUW\ ZLWK UHOLHI IURP D MXGJPHQW RI $2&LLWKDWDQ\RIWKH'HIHQGDQWVKDVFRPPLWWHGDQ\
GLVPLVVDO+RZHYHULQWKLVFDVHWKHGLVWULFWFRXUWHUUHGLQ RIWKHDFWVGHVFULEHGLQDQ\RIWKHOLWLJDWLRQGHVFULEHGLQ
FRQVWUXLQJ5XOHEDVDEURDGH[FHSWLRQWRWKH6XSUHPH WKHSUHDPEOHVWRWKLV$JUHHPHQWRULLLWKDWDQ\RIWKH
&RXUWjVGHFLVLRQLQ.RNNRQHQY*XDUGLDQ/LIH,QV&R 3ODLQWLIIVKDYHDQ\FODLPVDJDLQVWDQ\RIWKH'HIHQGDQWV
86LQZKLFKWKH&RXUWKHOGWKDWDIHGHUDOGLVWULFW
FRXUW ODFNV MXULVGLFWLRQ WR HQIRUFH D VHWWOHPHQW DJUHHPHQW ,QDGGLWLRQWRSURYLGLQJIRUWKHUHOHDVHRI0F$OSLQjVFODLPV
WHUPLQDWLQJ OLWLJDWLRQ XQOHVV WKH FRXUW mH[SUHVVO\ UHWDLQHG DJDLQVWWKH'HIHQGDQWVWKH6HWWOHPHQW$JUHHPHQWSURYLGHG
MXULVGLFWLRQ WR HQIRUFH WKH VHWWOHPHQW DJUHHPHQWl RU IRUWKHUHOHDVHRIDOOFODLPVWKDW0F$OSLQPLJKWDVVHUWDJDLQVW
mLQFRUSRUDWHGWKHWHUPVRIWKHVHWWOHPHQWLQWRWKHGLVPLVVDO KHU DWWRUQH\V 0HVVUV %UDQGRQ *LOIHGGHU DQG 1DVK
RUGHUl,GDW:KHQUHDGLQFRQMXQFWLRQZLWKWKH $OWKRXJK0F$OSLQDOOHJHVLQKHUEULHIRQDSSHDOWKDWVKHZDV
GLVPLVVDORUGHULQWKLVFDVH.RNNRQHQSUHFOXGHVWKHGLVWULFW mQRWLQIRUPHGlWKDWWKH6HWWOHPHQW$JUHHPHQWmFRQWDLQHGD
FRXUW IURP HQIRUFLQJ DQ\ SURYLVLRQV RI WKH 6HWWOHPHQW UHOHDVHRI>FODLPVDJDLQVWKHU@FRXQVHOl$SSHOODQWjV%UDW
$JUHHPHQWWKDWZHUHQRWH[SUHVVO\LQFRUSRUDWHGLQWRDQRUGHU ERWK0F$OSLQDQGKHUKXVEDQGSHUVRQDOO\LQLWLDOHGHDFKSDJH
HQWHUHGZKLOHWKHFDVHZDVVWLOOSHQGLQJRQWKHFRXUWjVGRFNHW RIWKH$JUHHPHQW7KH$JUHHPHQWGLGQRWSURYLGHIRUWKH
GLVWULFW FRXUW WR UHWDLQ MXULVGLFWLRQ RYHU LWV WHUPV RU
,Q.RNNRQHQWKH6XSUHPH&RXUWKHOGWKDWWKHGLVWULFWFRXUW HQIRUFHPHQW
LQ ZKLFK WKH FDVH ZDV VHWWOHG GLG QRW KDYH MXULVGLFWLRQ WR
HQIRUFHWKHSURYLVLRQRIWKHVHWWOHPHQWDJUHHPHQWUHTXLULQJ 2Q 6HSWHPEHU   WKH GLVWULFW FRXUW HQWHUHG DQ
WKHSHWLWLRQHUWRUHWXUQFHUWDLQILOHVWRWKHUHVSRQGHQWEHFDXVH $JUHHG2UGHURI'LVPLVVDO:LWK3UHMXGLFHZKLFKSURYLGHG
WKH GLVWULFW FRXUW GLG QRW H[SUHVVO\ UHWDLQ MXULVGLFWLRQ RYHU LQSHUWLQHQWSDUW
HQIRUFHPHQWRIWKHDJUHHPHQWRULQFRUSRUDWHWKHDJUHHPHQWjV
WHUPVLQLWVGLVPLVVDORUGHU6HH.RNNRQHQ86DW 7KH SDUWLHV EHLQJ LQ DJUHHPHQW DQG WKH &RXUW EHLQJ
QRWLQJWKDWWKHGLVWULFWFRXUWjVGLVPLVVDO RUGHUmGLGQRWVR RWKHUZLVHVXIILFLHQWO\DGYLVHGWKDWWKHSDUWLHVKHUHWRKDYH
PXFKDVUHIHUWRWKHVHWWOHPHQWDJUHHPHQWl:ULWLQJIRUWKH VHWWOHGWKHLUGLVSXWHVWKH&RXUWKHUHE\RUGHUV
&RXUWsXVWLFH6FDOLDH[SODLQHGWKDWWKHGLVWULFWFRXUWHUUHGLQ
HQIRUFLQJWKHDJUHHPHQWSXUVXDQWWRLWVmLQKHUHQWVXSHUYLVRU\  7KDWWKH&RPSODLQWILOHGKHUHLQLV',60,66('$6
SRZHUlRYHUWKHFDVH EHFDXVHIHGHUDOFRXUWVDUHmFRXUWVRI 6(77/(' :,7+ 35(s8',&( $6 72 $//
OLPLWHG MXULVGLFWLRQl DQG m>Q@HLWKHU >)HG 5 &LY 3URF &/$,06DVVHUWHGWKHUHLQDQGWKLVDFWLRQLV2UGHUHG
DLL@ QRU DQ\ >RWKHU@ SURYLVLRQ RI ODZ SURYLGHV IRU VWULFNHQIURPWKHGRFNHWRIWKLV&RXUWLQLWVHQWLUHW\
MXULVGLFWLRQ RI WKH FRXUW RYHU GLVSXWHV DULVLQJ RXW RI DQ
DJUHHPHQWWKDWSURGXFHVWKHVWLSXODWLRQ>WRGLVPLVVWKHFDVH@l  7KDW WKLV &RXUWjV 2UGHU RI $XJXVW   LV
,GDW KHUHE\ DPHQGHG WR SURYLGH WKDW &RXQW ,, RI WKH
&RPSODLQWLV'LVPLVVHGZLWK3UHMXGLFH
7KH&RXUWSURFHHGHGWRH[SODLQWKDWDQFLOODU\MXULVGLFWLRQ
WRHQIRUFHDVHWWOHPHQWDJUHHPHQWFDQQRWEHSUHPLVHGRQD  7KDWWKH&RXUWDSSRLQWHG5HFHLYHU0RUULV*DKDIHU
mUHODWLRQVKLSVRWHQXRXVDVWKHEUHDFKRIDQDJUHHPHQWWKDW LVKHUHE\RUGHUHGWRWXUQRYHUWRWKH'HIHQGDQWVDQ\
SURGXFHGWKHGLVPLVVDORIDQHDUOLHUIHGHUDOVXLWl,GDW DQGDOOFRSLHVRIWKH5HFHLYHUjV)LUVW,QWHULP5HSRUW
VWDWLQJ WKDW DQFLOODU\ MXULVGLFWLRQ H[LVWV IRU mWZR VHSDUDWH DVZHOODVDQ\GUDIWVWKHUHRIRUDQ\RWKHUGRFXPHQWV
WKRXJKVRPHWLPHVUHODWHGSXUSRVHVWRSHUPLWGLVSRVLWLRQ ZKLFKKHPD\KDYHREWDLQHGRUJHQHUDWHGDVDUHVXOW
RIWKHSHUIRUPDQFHRIKLVGXWLHVDV5HFHLYHUKHUHLQ
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

$V LV DSSDUHQW IURP WKH ODQJXDJH RI WKH RUGHU WKH GLVWULFW REVHUYHGLQWKLVFDVHmWKHRUGHURIFLYLOFRQWHPSWZDVHQWHUHG
FRXUWGLGQRWH[SUHVVO\UHWDLQMXULVGLFWLRQRYHUWKH6HWWOHPHQW SRVWMXGJPHQWRQDUHRSHQLQJRIWKHDFWLRQIRUWKHSXUSRVHRI
$JUHHPHQW QRU RUGHU 0F$OSLQ KHUVHOI WR WDNH DQ\ DFWLRQ UHFRQVLGHULQJWKHFRQWHPSWPRWLRQ7KXVWKHFRQFHUQWKDWLW
DOWKRXJKWKHFRXUWjVGLUHFWLYHWR*DKDIHULQFRUSRUDWHGKLVDQG UHSUHVHQWVDQLQWHUORFXWRU\RUGHULVQRWSUHVHQWl
SRWHQWLDOO\0F$OSLQjVGXWLHVXQGHUWKH$JUHHPHQW
7KHPRWLRQVSDQHODOVRSURSHUO\UHMHFWHGWKHGHIHQGDQWVj
,Q sXQH  0F$OSLQ DQG KHU KXVEDQG UHWDLQHG QHZ VHFRQG DUJXPHQW DJDLQVW DSSHOODWH MXULVGLFWLRQ o WKDW WKH
FRXQVHO5DPELFXUH0LOOHU .XHEOHUKHUHLQDIWHUUHIHUUHGWR GLVWULFWFRXUWjVsDQXDU\RUGHUKROGLQJ0F$OSLQLQFRQWHPSW
DV m50.l WR SXUVXH D OHJDO PDOSUDFWLFH VXLW DJDLQVW WKH ZDV QRW D QHZ RUGHU EXW PHUHO\ DQ HQIRUFHPHQW RI WKH
DWWRUQH\V ZKR UHSUHVHQWHG WKH 0RFN (VWDWH LQ WKH GLVWULFW UHTXLUHPHQWVWKDWWKHFRXUWLPSRVHGRQ0F$OSLQLQWKHFRXUVH
FRXUWDFWLRQEHIRUHsXGJH+RRG%HIRUHILOLQJ0F$OSLQjV RIWKHXQGHUO\LQJOLWLJDWLRQ,QVXSSRUWRIWKHLUSRVLWLRQWKH
PDOSUDFWLFH FODLP LQ WKH )D\HWWH &LUFXLW &RXUW RQ GHIHQGDQWV FLWHG :KLWWLQJWRQ Y 0LOE\  )G  WK
6HSWHPEHU   50. ZKLFK WRRN WKH FDVH RQ D &LUFHUWGHQLHG86LQZKLFKWKLVFRXUW
FRQWLQJHQF\EDVLVREWDLQHGIURP7LP0F$OSLQDQDSSUDLVDO KHOGWKDWWKHmPHUHIDFWWKDWDMXGJPHQWSUHYLRXVO\HQWHUHG
RI $2&jV UHDO HVWDWH KROGLQJV LQ )ORULGD  7KH DSSUDLVDO KDVEHHQUHHQWHUHGRUUHYLVHGLQDQLPPDWHULDOZD\GRHVQRW
VXJJHVWHG WKDW $2& ZDV ZRUWK PRUH WKDQ WKH DPRXQW WROOWKHWLPHZLWKLQZKLFKUHYLHZPXVWEHVRXJKWl,GDW
LQGLFDWHG LQ LWV  ILQDQFLDO VWDWHPHQW XSRQ ZKLFK 7KHGHIHQGDQWVjDUJXPHQWODFNVPHULW7KHGLVWULFWFRXUWjV
0F$OSLQDOOHJHGO\UHOLHGLQDJUHHLQJWRWKHVHWWOHPHQWDQG sDQXDU\  RUGHU ZDV PRUH WKDQ D UHHQWU\ RU mLPPDWHULDOl
50.UHOLHGRQWKLVDSSUDLVDODORQJZLWKVHYHUDOGRFXPHQWV UHYLVLRQ RI RQH RI WKH FRXUWjV HDUOLHU RUGHUV  7KLV SDQHO
WKDW0F$OSLQKDGREWDLQHGIURP*DKDIHUjVLQYHVWLJDWLRQWR WKHUHIRUH KDV MXULVGLFWLRQ WR GHWHUPLQH ZKHWKHU WKH GLVWULFW
VXSSRUW0F$OSLQjVDOOHJDWLRQWKDW%UDQGRQ*LOIHGGHUDQG FRXUWH[FHHGHGWKHVFRSHRILWVDXWKRULW\LQKROGLQJ0F$OSLQ
1DVK FRPPLWWHG PDOSUDFWLFH LQ DGYLVLQJ KHU WR VHWWOH KHU LQFRQWHPSW
FODLPVDJDLQVW$2&,QGHHG0F$OSLQDGPLWVLQKHUEULHI
WKDW WKH GRFXPHQWV 50. LV QRZ UHO\LQJ XSRQ WR VXSSRUW 7KH'LVWULFW&RXUWjVsXULVGLFWLRQWR,VVXHWKH2UGHUV
0F$OSLQjVPDOSUDFWLFHFODLPDUHmWKHYHU\GRFXPHQWVZKLFK
WKH'LVWULFW&RXUWRUGHUHGWREHUHWXUQHGWR>WKH@'HIHQGDQWVl %HFDXVH WKH GLVWULFW FRXUW KHOG 0F$OSLQ LQ FRQWHPSW RI
$SSHOODQWjV %U DW  VHH DOVR $SSHOODQWjV 5HSO\ %U DW  VHWWOHPHQWWHUPVWKDWZHUHQRWLQFRUSRUDWHGLQWRDQ\RIWKH
UHIHUULQJ WR WKH VXEVWDQFH RI YDULRXV FRUSRUDWH GRFXPHQWV FRXUWjVRUGHUVZHPXVWGHWHUPLQHZKHWKHUWKHGLVWULFWFRXUW
VHL]HG IURP $2& E\ *DKDIHU LQ KLV FDSDFLW\ DV $2&jV KDGMXULVGLFWLRQWRHQIRUFHWKHVHWWOHPHQWDJUHHPHQWLQLWV
UHFHLYHU HQWLUHW\ DQG LI QRW ZKHWKHU WKH GLVWULFW FRXUWjV FRQWHPSW
MXGJPHQWZDVZLWKLQWKHVFRSHRILWVMXULVGLFWLRQWRHQIRUFHLWV
SULRURUGHUVDJDLQVWWKHSDUWLHV


sXULVGLFWLRQWR(QIRUFHWKH6HWWOHPHQW$JUHHPHQW
,Q KHU PDOSUDFWLFH VXLW 0F$OSLQ DOOHJHV WKDW VKH ZRXOG QRW KDYH
DJUHHG WR WKH VHWWOHPHQW RU WR WKH ODQJXDJH LQ WKH UHOHDVH mKDG LW QRW EHHQ $OWKRXJK LW KDG DOUHDG\ GLVPLVVHG WKH SDUWLHVj VXLW ZLWK
IRU WKH IHDU RI ORVLQJ WKH (VWDWHjV $2& VWRFN DQG VWRFN RSWLRQV IRU QR
SUHMXGLFHDQGVWULFNHQWKHFDVHIURPLWVGRFNHWWKHGLVWULFW
FRPSHQVDWLRQ ZKDWVRHYHU WKH HUURQHRXV DQG PLVOHDGLQJ VWDWHPHQWV IURP
>%UDQGRQ@ WKH H[WUHPH SUHVVXUH RI WKH FRQWLQXHG WKUHDW RI EHLQJ KHOG LQ
FRXUW FLWHG )HGHUDO 5XOH RI &LYLO 3URFHGXUH E DV
FRQWHPSW RQ *DKDIHUjV SHQGLQJ PRWLRQ DQG WKH HUURQHRXV UHSUHVHQWDWLRQV
DXWKRULW\ IRU HQIRUFLQJ WKH 6HWWOHPHQW $JUHHPHQW DJDLQVW
RI WKH YDOXH RI WKH FRPSDQ\l $SSHOODQWjV %U DW  0F$OSLQ5XOHEPD\LQFHUWDLQFLUFXPVWDQFHVEH
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

RUDQFLOODU\$QFLOODU\MXULVGLFWLRQH[LVWVWRSHUPLWDFRXUW $ZDUHWKDW0F$OSLQZDVLQKHUPDOSUDFWLFHDFWLRQDJDLQVW
WRGLVSRVHRIIDFWXDOO\LQGHSHQGHQWFODLPVDQGRUWRHQDEOH KHUIRUPHUDWWRUQH\VDVVHUWLQJFODLPVRI5REHUW0RFNjVVWRFN
DFRXUWWRPDQDJHLWVSURFHHGLQJVYLQGLFDWHLWVDXWKRULW\DQG RZQHUVKLSLQYLRODWLRQRIWKH6HWWOHPHQW$JUHHPHQW$2&
HIIHFWXDWHLWVGHFUHHV6HH.RNNRQHQY*XDUGLDQ/LIH,QV DQG LWV FRGHIHQGDQWV PRYHG WKH GLVWULFW FRXUW RQ
&RRI$PHULFD86 1RYHPEHU   SXUVXDQW WR )HGHUDO 5XOH RI &LYLO
3URFHGXUH WRKROG0F$OSLQLQFRQWHPSWRILWVGLVPLVVDO
$SSHOODWHsXULVGLFWLRQ RUGHUDQGWRGLYHVW0F$OSLQRIDQ\GRFXPHQWVFRYHUHGE\WKH
$JUHHPHQWDQGWKHFRXUWjVSULRURUGHUV,QWKHLUPRWLRQWKH
$OWKRXJKRQ$XJXVWDSDQHORIWKLVFRXUWGHQLHG GHIHQGDQWVDOOHJHGWKDW0F$OSLQKDGYLRODWHG QRW RQO\WKH
WKH GHIHQGDQWVj PRWLRQ WR GLVPLVV WKLV DSSHDO IRU ODFN RI H[SUHVV WHUPV RI WKH 6HWWOHPHQW $JUHHPHQW EXW DOVR WKH
MXULVGLFWLRQ WKH GHIHQGDQWV UHDVVHUW LQ WKHLU EULHI WKDW ZH GLVWULFWFRXUWjVRUGHUVRI0DUFKsXO\
FDQQRWKHDU0F$OSLQjVFKDOOHQJHWRWKHGLVWULFWFRXUWjVRUGHU
KROGLQJKHULQFRQWHPSWEHFDXVHWKDWRUGHUZDVQRWDILQDO
DSSHDODEOH MXGJPHQW EXW PHUHO\ DQ HQIRUFHPHQW RI WKH
GLVWULFWFRXUWjVHDUOLHUUXOLQJV

7KHPRWLRQVSDQHOSURSHUO\GHQLHGWKHGHIHQGDQWVjUHTXHVW 5XOH  sXGJPHQW IRU 6SHFLILF $FWV 9HVWLQJ 7LWOH SURYLGHV LQ
WR GLVPLVV WKLV DSSHDO  ,Q WKHLU PRWLRQ WR GLVPLVV WKH SHUWLQHQW SDUW

GHIHQGDQWVILUVWDUJXHGWKDWWKHGLVWULFWFRXUWjVRUGHURIFLYLO ,I D MXGJPHQW GLUHFWV D SDUW\ WR H[HFXWH D FRQYH\DQFH RI ODQG RU
FRQWHPSWZDVQRWDSSHDODEOHXQGHU)R[Y&DSLWDO&R WR GHOLYHU GHHGV RU RWKHU GRFXPHQWV RU WR SHUIRUP DQ\ RWKHU
86   LQ ZKLFK WKH 6XSUHPH &RXUW KHOG WKDW VSHFLILF DFW DQG WKH SDUW\ IDLOV WR FRPSO\ ZLWKLQ WKH WLPH
mH[FHSWLQFRQQHFWLRQZLWKDQDSSHDOIURPDILQDOMXGJPHQW VSHFLILHG WKH FRXUW PD\ GLUHFW WKH DFW WR EH GRQH DW WKH FRVW RI
RUGHFUHHDSDUW\WRDVXLWPD\QRWUHYLHZXSRQDSSHDODQ WKH GLVREHGLHQW SDUW\ E\ VRPH RWKHU SHUVRQ DSSRLQWHG E\ WKH

RUGHUILQLQJRULPSULVRQLQJKLPIRUWKHFRPPLVVLRQRIDFLYLO FRXUW DQG WKH DFW ZKHQ VR GRQH KDV OLNH HIIHFW DV LI GRQH E\ WKH

FRQWHPSWl  $V WKH PRWLRQV SDQHO QRWHG LQ UHMHFWLQJ WKLV
SDUW\ 2Q DSSOLFDWLRQ RI WKH SDUW\ HQWLWOHG WR SHUIRUPDQFH WKH
FOHUN VKDOO LVVXH D ZULW RI DWWDFKPHQW RU VHTXHVWUDWLRQ DJDLQVW WKH
DUJXPHQW)R[ GRHV QRW SUHFOXGH UHYLHZ RI FLYLO FRQWHPSW SURSHUW\ RI WKH GLVREHGLHQW SDUW\ WR FRPSHO REHGLHQFH WR WKH
RUGHUVJHQHUDOO\WKHUXOHDUWLFXODWHGLQ)R[VLPSO\VWDQGVIRU MXGJPHQW 7KH FRXUW PD\ DOVR LQ SURSHU FDVHV DGMXGJH WKH SDUW\
WKH SURSRVLWLRQ WKDW D mMXGJPHQW RI FLYLO FRQWHPSW LV QRW LQ FRQWHPSW    

>LWVHOI@DILQDOGHFUHHlDQGWKHUHIRUHLVQRWDSSHDODEOHLQWKH 
DEVHQFHRIDILQDOMXGJPHQW%OD\ORFNY&KHNHU2LO&R 6WDWLQJ LQ SHUWLQHQW SDUW WKDW m5HFHLYHUjV FRXQVHO VKDOO UHWDLQ DOO
FRSLHV RI WKH 5HFHLYHUjV )LUVW ,QWHULP 5HSRUW DQG WKH 5HFHLYHU VKDOO QRW
)G   WK &LU   $V WKLV FRXUW H[SODLQHG LQ GLVFORVH WR DQ\RQH RWKHU WKDQ KLV FRXQVHO DQ\WKLQJ UHJDUGLQJ WKH VXEVWDQFH
3HDERG\&RDO&RY/RFDO8QLRQ1RVDQG RI KLV ZRUN DV 5HFHLYHU KHUHLQl
80:)GWK&LUmDOOWKDWLVUHTXLUHGLVWKDW 
DILQDORUGHUH[LVWVRWKDWWKHSROLF\RISUHYHQWLQJSLHFHPHDO 6WDWLQJ LQ SHUWLQHQW SDUW WKDW mWKH 5HFHLYHU VKDOO UHWXUQ DOO
OLWLJDWLRQLVVHUYHGl,GDW$VWKHPRWLRQVSDQHOFRUUHFWO\ GRFXPHQWV WDNHQ IURP WKH GHIHQGDQWjV SUHPLVHV WKDW WKH 5HFHLYHU VKDOO
QRW GLVFORVH DQ\ GRFXPHQW RU SRUWLRQ WKHUHRI WR DQ\RQH DQG WKDW DQ\
FRSLHV PDGH VKDOO DOVR EH UHWXUQHG WR WKH GHIHQGDQWVl 7KH RUGHU DOVR
SUHFOXGHG 0F$OSLQ IURP GHSRVLQJ *DKDIHU DQG VWDWHG WKDW mWKH 5HFHLYHU
VKDOO QRW EH UHTXLUHG WR SURGXFH DQ\ GRFXPHQW RU UHVSRQG WR DQ\

7KH FRQWLQXLQJ YLDELOLW\ RI WKH KROGLQJ LQ )R[ ZDV FDOOHG LQWR GLVFRYHU\ KHUHLQl
TXHVWLRQ LQ %\UG Y 5HQR  )G   '& &LU 
 0F$OSLQY/H[LQJWRQ 1R 1R 0F$OSLQY/H[LQJWRQ 
$XWR7UXFN6WRSHWDO $XWR7UXFN6WRSHWDO

DQG 6HSWHPEHU    0F$OSLQ REMHFWHG WR WKH WKH GHIHQGDQWV FRXOG EH EDVHG  0F$OSLQjV FRXQVHO WKHQ
GHIHQGDQWVjPRWLRQWRHQIRUFHDUJXLQJWKDWWKHGLVWULFWFRXUW IXUQLVKHG WKH GHIHQGDQWV ZLWK D SULYLOHJH ORJ LGHQWLI\LQJ
ODFNHG MXULVGLFWLRQ WR JUDQW WKH PRWLRQ XQGHU WKH 6XSUHPH GRFXPHQWV WKDW ZHUH ZLWKKHOG IURP SURGXFWLRQ XQGHU WKH
&RXUWjVGHFLVLRQLQ.RNNRQHQY*XDUGLDQ/LIH,QV&R GLVWULFWFRXUWjVRUGHU
86,QDQRUGHUHQWHUHGRQsDQXDU\WKH
GLVWULFWFRXUWKHOGRYHU0F$OSLQjVREMHFWLRQVWKDWm>Z@KLOH 0F$OSLQ WLPHO\ DSSHDOHG WKH GLVWULFW FRXUWjV sDQXDU\ 
.RNNRQHQGRHVLQVRPHZD\VOLPLWWKH&RXUWjVMXULVGLFWLRQLQ RUGHUWRWKH6L[WK&LUFXLWRQWKHEDVLVWKDWWKHGLVWULFWFRXUW
YROXQWDU\ GLVPLVVDO FDVHV ZLWK UHJDUG WR HQIRUFHPHQW RI D ODFNHG MXULVGLFWLRQ WR HQIRUFH WKH 6HWWOHPHQW $JUHHPHQW
VHWWOHPHQWDJUHHPHQWWKH6XSUHPH&RXUWQRWHGWKDW)HGHUDO %HIRUHWKHDSSHDOZDVVFKHGXOHGIRUKHDULQJKRZHYHUWKH
5XOHRI&LYLO3URFHGXUHESHUPLWVWKHGLVWULFWFRXUWWR GHIHQGDQWVILOHGDPRWLRQHQWHUHG$SULOIRUIXUWKHU
UHRSHQDFDVHIRUµDQ\RWKHUUHDVRQMXVWLI\LQJUHOLHIjl7KH FRQWHPSW SURFHHGLQJV EDVHG RQ 0F$OSLQjV IDLOXUH IXOO\ WR
GLVWULFWFRXUWWKHQFRQVLGHUHGZKDWLWWHUPHGWKHm'HIHQGDQWVj FRPSO\ZLWKWKHRUGHU3XUVXDQWWRWKLVPRWLRQWKHGLVWULFW
PRWLRQ WR UHRSHQ WKH DERYHVW\OHG DFWLRQ IRU WKH OLPLWHG FRXUW UXOHG RQ 0D\   WKDW 0F$OSLQ KDG IDLOHG WR
SXUSRVHRIHQIRUFLQJWKH&RXUWjV2UGHUVDQGWKHWHUPVRIWKH FRPSO\ZLWKWKHFRXUWjVsDQXDU\RUGHUDQGWKDW0F$OSLQ
VHWWOHPHQWDJUHHPHQWlDQGRUGHUHGWKDW0F$OSLQEHKHOG ZRXOGULVNEHLQJKHOGLQIXUWKHUFRQWHPSWLIVKHGLGQRWILOH
LQFRQWHPSWWKDW0F$OSLQmWUDQVIHUWRWKHGHIHQGDQWVDQ\ SURRIZLWKWKHFRXUWRIIXOOFRPSOLDQFHZLWKWKHsDQXDU\
DQGDOOGRFXPHQWVUHOHYDQWWR$SSDODFKLDQ2LO&RUSRUDWLRQ RUGHU ZLWKLQ WHQ GD\V RI HQWU\ RI WKH 0D\  UXOLQJ  7KH
DQGRUDQ\DQGDOOGRFXPHQWVXSRQZKLFKDFODLPDJDLQVWWKH GLVWULFWFRXUWIXUWKHUKHOGWKDWEDVHGRQSDUDJUDSKRIWKH
GHIHQGDQWVFRXOGEHEDVHGWKDW0F$OSLQGHOHWHmDQ\DQG 6HWWOHPHQW$JUHHPHQW0F$OSLQZDVEDUUHGIURPDVVHUWLQJ
DOOFODLPVWKDW5REHUW0RFNRZQHGDQ\VKDUHVRI$SSDODFKLDQ DQ\SULYLOHJHVWKDWZRXOGDOORZKHUWRUHWDLQDQ\$2&UHODWHG
2LO&RUSRUDWLRQLQ>KHU@PDOSUDFWLFHFRPSODLQWlDQGWKDW GRFXPHQWV)LQDOO\WKHFRXUWVWDWHGWKDWLWVsDQXDU\RUGHU
WKHGHIHQGDQWVEHDZDUGHGmDOODWWRUQH\FRVWVDQGH[SHQVHV GLUHFWLQJ0F$OSLQWRGHOHWHIURPKHUPDOSUDFWLFHFRPSODLQW
JHQHUDWHGLQWKHLUHQIRUFHPHQWRIWKHVHWWOHPHQWDJUHHPHQWl DQ\FODLPVUHIHUULQJWR5REHUW0RFNjVVWRFNLQ$2&UHTXLUHG
WKHUHPRYDOQRWRQO\RIGLUHFWUHIHUHQFHVWR0RFNEXWRImDQ\
,QUHVSRQVHWRWKHGLVWULFWFRXUWjVsDQXDU\RUGHUZKLFK VWDWHPHQWWKDWLQIHUVRULPSOLHVWKDW5REHUW0RFNRZQHGDQ\
0F$OSLQ DVVHUWV ZDV HQWHUHG ZLWKRXW MXULVGLFWLRQ DQG LQ VKDUHVRI$2&l2Q0D\0F$OSLQILOHGDPRWLRQ
YLRODWLRQRIGXHSURFHVVEHFDXVHWKHGLVWULFWFRXUWGLGQRWKROG WRVWD\WKHGLVWULFWFRXUWjVSURFHHGLQJVSHQGLQJDQDSSHDOWR
DQ HYLGHQWLDU\ RU RWKHU KHDULQJ EHIRUH KROGLQJ KHU LQ WKLVSDQHO7KHGLVWULFWFRXUWJUDQWHG0F$OSLQjVPRWLRQRQ
FRQWHPSW0F$OSLQDPHQGHGKHUPDOSUDFWLFHFODLPWRUHPRYH sXQHDQGWKHFDVHZDVVWD\LQJSHQGLQJDGHFLVLRQE\
DOO GLUHFW UHIHUHQFHV WR 5REHUW 0RFN DQG UHWXUQHG WR WKH WKLVFRXUW
GHIHQGDQWVQRQSULYLOHJHGGRFXPHQWVWKDW0F$OSLQjVFRXQVHO
EHOLHYHGZHUHUHOHYDQWWR$2&RUXSRQZKLFKDFODLPDJDLQVW ,,
7KLVFRXUWUHYLHZVGHQRYRWKHGLVWULFWFRXUW
VGHWHUPLQDWLRQ
 WKDWLWKDGVXEMHFWPDWWHUMXULVGLFWLRQWRHQIRUFHWKHWHUPVRI
'LVPLVVLQJ WKH DFWLRQ ZLWK SUHMXGLFH DQG VWDWLQJ LQ SHUWLQHQW SDUW
WKH VHWWOHPHQW DJUHHPHQW  6HH &DXGLOO Y 1RUWK $PHULFDQ
WKDW WKH m5HFHLYHU 0RUULV *DKDIHU LV KHUHE\ RUGHUHG WR WXUQ RYHU WR WKH
'HIHQGDQWV DQ\ DQG DOO FRSLHV RI WKH 5HFHLYHUjV )LUVW ,QWHULP 5HSRUW DV
0HGLD &RUS  )G   WK &LU  FLWLQJ
ZHOO DV DQ\ GUDIWV WKHUHRI RU DQ\ RWKHU GRFXPHQWV ZKLFK KH PD\ KDYH +LOOLDUGY8QLWHG6WDWHV3RVWDO6HUY)GWK
REWDLQHG RU JHQHUDWHG DV D UHVXOW RI WKH SHUIRUPDQFH RI KLV GXWLHV DV &LU6XEMHFWPDWWHUMXULVGLFWLRQPD\EHLQGHSHQGHQW
5HFHLYHUl