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 :$7&+72:(5 %,%/( $1' ; 75$&7 62&,(7< 2) 1(: <25. ,1& :(//69,//( 1RV 2+,2 &21*5(*$7,21 2) s(+29$+j6 :,71(66(6 ,1& ! 3ODLQWLIIV$SSHOODQWV $SSHOOHHV Y 9,//$*( 2) 675$7721 2+,2 s2+1 0 $%'$//$0D\RURI WKH9LOODJHRI6WUDWWRQ2KLR LQ+LV2IILFLDO&DSDFLW\ 'HIHQGDQWV$SSHOOHHV $SSHOODQWV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1R n(GPXQG$6DUJXVsU'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG )HEUXDU\ :DWFKWRZHU%LEOHHWDOY 1RV 9LOODJHRI6WUDWWRQHWDO %HIRUH 0(55,77.(11('<DQG*,/0$1&LUFXLW sXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 3DXO'3ROLGRUR/$:2)),&(2)3$8/' 32/,'2523DWWHUVRQ1HZZ@KHQ DWWRUQH\VjIHHVDVDSUHYDLOLQJSDUW\LQWKH)LUVW$PHQGPHQW WKH*RYHUQPHQWUHVWULFWVVSHHFKWKH*RYHUQPHQWEHDUVWKH OLWLJDWLRQ 7KH\ DUJXH WKDW WKH FRXUW HUUHG LQ ILQGLQJ WKDW EXUGHQRISURYLQJWKHFRQVWLWXWLRQDOLW\RILWVDFWLRQVl8QLWHG SODLQWLIIV ZHUH HQWLWOHG WR DWWRUQH\Vj IHHV DQG LQ WKH 6WDWHVY3OD\ER\(QWPjW*URXS,QF6&W DOWHUQDWLYH LI WKLV FRXUW GHWHUPLQHV WKDW SODLQWLIIV ZHUH 7KLV EXUGHQ KRZHYHU mLV QRW VDWLVILHG E\ PHUH HQWLWOHG WR VXFK IHHV WKH DPRXQW WKH FRXUW DZDUGHG ZDV VSHFXODWLRQ RU FRQMHFWXUH UDWKHU D JRYHUQPHQWDO ERG\ XQUHDVRQDEOH VHHNLQJWRVXVWDLQDUHVWULFWLRQRQFRPPHUFLDOVSHHFKPXVW GHPRQVWUDWH WKDW WKH KDUPV LW UHFLWHV DUH UHDO DQG WKDW LWV %HFDXVH WKH RUGLQDQFH LV QHLWKHU XQFRQVWLWXWLRQDOO\ UHVWULFWLRQZLOOLQIDFWDOOHYLDWHWKHPWRDPDWHULDOGHJUHHl RYHUEURDG QRU YDJXH DQG LW LV QDUURZO\ WDLORUHG WR VHUYH )ORULGD%DUY:HQWIRU,W,QF86 VLJQLILFDQWJRYHUQPHQWLQWHUHVWVZHDIILUPWKHGLVWULFWFRXUWjV DSSO\LQJWKHLQWHUPHGLDWHVFUXWLQ\VWDQGDUGWRUHVWULFWLRQVRQ MXGJPHQW ILQGLQJ WKH PDMRULW\ RI WKH RUGLQDQFH OHJDODGYHUWLVLQJ FLWDWLRQVRPLWWHGDQGHPSKDVLVDGGHG ,Q FRQVWLWXWLRQDOO\SHUPLVVLEOH$QGEHFDXVHWKHGLVWULFWFRXUW WKLV FDVH WKH 9LOODJH RI 6WUDWWRQ KDV IDLOHG WR GHPRQVWUDWH GLGQRWDEXVHLWVGLVFUHWLRQLQDZDUGLQJSODLQWLIIVUHDVRQDEOH HLWKHUWKHUHDOLW\RIWKHKDUPRUWKHHIILFDF\RIWKHUHVWULFWLRQ DWWRUQH\VjIHHVZHDIILUPWKDWMXGJPHQWDVZHOO )RUDOORIWKHUHDVRQVVHWIRUWKDERYH,ZRXOGKROGWKDWWKH ,)$&76 RUGLQDQFHjV SHUPLW UHTXLUHPHQW LV DQ XQFRQVWLWXWLRQDO LQIULQJHPHQWRQWKHsHKRYDKjV:LWQHVVHVj)LUVW$PHQGPHQW 7KLVGLVSXWHFHQWHUVRQWKH9LOODJHRI6WUDWWRQjVRUGLQDQFH ULJKWV UHJXODWLQJWKHVROLFLWLQJDQGFDQYDVVLQJRISULYDWHKRPHVLQ WKH 9LOODJH %\ LWV WHUPV WKH RUGLQDQFH DSSOLHV WR mFDQYDVVHUVVROLFLWRUVSHGGOHUV>RU@KDZNHUVlWKDWJRRQD SULYDWH UHVLGHQFH LQ WKH 9LOODJH IRU WKH mSXUSRVHV RI DGYHUWLVLQJSURPRWLQJVHOOLQJDQGRUH[SODLQLQJDQ\SURGXFW VHUYLFHRUJDQL]DWLRQRUFDXVHl6XFKLQGLYLGXDOVPXVWILUVW UHJLVWHU ZLWK WKH 2IILFH RI WKH 0D\RU E\ ILOOLQJ RXW D 5HJLVWUDWLRQ )RUP 7KH 5HJLVWUDWLRQ )RUP UHTXLUHV WKH LQGLYLGXDOVWRIXUQLVKLQIRUPDWLRQDERXWWKHLUFDXVHZK\WKH\ DUHFDQYDVVLQJZKLFKUHVLGHQFHVWKH\LQWHQGWRFDQYDVVKRZ ORQJ WKH\ LQWHQG WR FDQYDVV DQG DQ\ mRWKHU LQIRUPDWLRQ FRQFHUQLQJWKH5HJLVWUDQW>V@DQG>WKHLU@EXVLQHVVRUSXUSRVH DV PD\ EH UHDVRQDEO\ QHFHVVDU\ WR DFFXUDWHO\ GHVFULEH WKH QDWXUHRIWKHSULYLOHJHGHVLUHGl2QFHWKHLQGLYLGXDOVKDYH 6SHFLILFDOO\ WKH UHOHYDQW VHFWLRQ RI WKH 2UGLQDQFH UHDGV 7KH )RUP VKDOO EH FRPSOHWHG E\ WKH 5HJLVWUDQW DQG LW VKDOO WKHQ FRQWDLQ WKH IROORZLQJ LQIRUPDWLRQ 7KH QDPH DQG KRPH DGGUHVV RI WKH 5HJLVWUDQW DQG 5HJLVWUDQWjV UHVLGHQFH IRU ILYH \HDUV QH[W SUHFHGLQJ WKH GDWH RI UHJLVWUDWLRQ $ EULHI GHVFULSWLRQ RI WKH QDWXUH DQG SXUSRVH RI WKH EXVLQHVV :DWFKWRZHU%LEOHHWDOY 1RV 1RV :DWFKWRZHU%LEOHHWDOY 9LOODJHRI6WUDWWRQHWDO 9LOODJHRI6WUDWWRQHWDO UHJLVWHUHG WKH\ mVKDOO EH IXUQLVKHG D 6ROLFLWDWLRQ 3HUPLWl YLHZLQFRUUHFWO\ WKDWWKRVHLQWHQGLQJWRFRPPLWIUDXGZRXOG XQOHVVWKH0D\RUGHWHUPLQHVWKDWWKH\ IDLOHGWRFRPSOHWH LQIDFWUHJLVWHUDWDOO WKH5HJLVWUDWLRQ)RUP SURYLGHGIUDXGXOHQWLQIRUPDWLRQRQ WKH IRUP PDGH IDOVH RU IUDXGXOHQW VWDWHPHQWV RU $V WR WKH 9LOODJHjV DVVHUWHG LQWHUHVW LQ SURWHFWLQJ PLVUHSUHVHQWDWLRQVZKLOHFDQYDVVLQJ YLRODWHGDQ\RWKHU KRPHRZQHUVIURPmXQZDQWHGDQQR\DQFHVl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mWKHUHDUH D1R6ROLFLWDWLRQ)RUPZLWKWKH0D\RUjV2IILFHDQGKDVQRW PDQ\ RSWLRQV DYDLODEOH WR WKH FLW\ WKDW ZRXOG DGGUHVV LWV SRVWHGD1R6ROLFLWDWLRQ6LJQRQKLVSURSHUW\3ULRUWRWKLV DHVWKHWLFVDIHW\DQGSUROLIHUDWLRQFRQFHUQVZLWKRXWSODFLQJ OLWLJDWLRQD1R6ROLFLWDWLRQ)RUPFRQWDLQHGDOLVWRIYDULRXV WKH VLJQLILFDQW EXUGHQ RQ FRPPHUFLDO VSHHFK WKDW WKH RUJDQL]DWLRQV QH[W WR ZKLFK WKH UHVLGHQW FRXOG SODFH D RUGLQDQFHGRHVl FKHFNPDUNWRLQGLFDWHWKHRUJDQL]DWLRQVWKHUHVLGHQWZLVKHG WREHH[FOXGHGIURPWKLVJHQHUDOSURKLELWLRQ:KLOHWKH1R ,QGHHGWKH9LOODJHDOUHDG\HIIHFWLYHO\DFKLHYHVLWVLQWHUHVW 6ROLFLWDWLRQ)RUPOLVWHGVHYHUDORUJDQL]DWLRQVE\QDPHWKH LQ SURWHFWLQJ KRPHRZQHUV IURP XQZDQWHG DQQR\DQFHV RQO\UHOLJLRXVRUJDQL]DWLRQLWOLVWHGE\QDPHZDVWKH&KXUFK WKURXJKWKHVHFWLRQRIWKHRUGLQDQFHWKDWIRUELGVVROLFLWDWLRQ RIsHKRYDKjV:LWQHVVHV DW UHVLGHQFHV ZKHUH WKH KRPHRZQHUV KDYH SRVWHG m1R 6ROLFLWDWLRQl VLJQV 7KH VDPH SHQDOW\ D IRXUWKGHJUHH PLVGHPHDQRULVLPSRVHGIRUYLRODWLQJWKHm1R6ROLFLWDWLRQl VHFWLRQ DV IRU YLRODWLQJ WKH UHJLVWUDWLRQ VHFWLRQ RI WKH RUGLQDQFH7KXVVRPHRQHZKRZRXOGUHJLVWHUEHFDXVHWKH\ DUH GHWHUUHG E\ WKH SHQDOW\ IRU IDLOLQJ WR GR VR ZRXOG SUHVXPDEO\ DOUHDG\ EH GHWHUUHG IURP LJQRULQJ D m1R SURPRWLRQ VROLFLWDWLRQ RUJDQL]DWLRQ FDXVH DQGRU WKH JRRGV RU 6ROLFLWDWLRQlVLJQZKLOHVRPHRQHZKRLVZLOOLQJWRULVNWKH VHUYLFHV RIIHUHG 7KH QDPH DQG DGGUHVV RI WKH HPSOR\HU RU DIILOLDWHG RUJDQL]DWLRQ SHQDOW\LPSRVHGIRULJQRULQJDm1R6ROLFLWDWLRQl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mSURPRWHVDVXEVWDQWLDOJRYHUQPHQWLQWHUHVWWKDW EXVLQHVV RU SXUSRVH DV PD\ EH UHDVRQDEO\ QHFHVVDU\ WR DFFXUDWHO\ ZRXOGEHDFKLHYHGOHVVHIIHFWLYHO\DEVHQWWKHUHJXODWLRQl GHVFULEH WKH QDWXUH RI WKH SULYLOHJH GHVLUHG m2XUFDVHVPDNHFOHDUWKDWLQDVVHVVLQJWKHUHDVRQDEOHQHVV RIDUHJXODWLRQ>WKDWDIIHFWVVSHHFK@ZHPXVWZHLJKKHDYLO\ )RU WKH SXUSRVHV RI WKLV RSLQLRQ ZH ZLOO UHIHU WR DQ\ DFWLYLW\ FRYHUHG E\ WKH RUGLQDQFH DV FDQYDVVLQJ DQG WKRVH LQGLYLGXDOV HQJDJLQJ LQ WKHIDFWWKDWFRPPXQLFDWLRQLVLQYROYHGl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m>S@HUVRQV RQLWVIDFHDQGDVDSSOLHGWRWKHPDQGVHHNLQJDSHUPDQHQW GHVLULQJWRHQJDJHLQDQ\RUJDQL]HGIUHHVSHHFKDFWLYLWLHVLQ LQMXQFWLRQ SURKLELWLQJ WKH 9LOODJH IURP HQIRUFLQJ WKH WKH IRUXP DUH VXEMHFW WR WKH SHUPLW UHTXLUHPHQWl RUGLQDQFHDJDLQVWWKHP$IWHUFRQGXFWLQJDEHQFKWULDORQWKH &RQVHTXHQWO\WKHW\SHRISHUVRQVDQGHQWLWLHVVXEMHFWWRWKH PDWWHUWKHGLVWULFWFRXUWIRXQGWKDWWKHRUGLQDQFHDSSOLHGWR SHUPLW UHTXLUHPHQW PXVW EH DQDO\]HG WR GHWHUPLQH DQ SODLQWLIIVDVWKH\ZHUHmFDQYDVVHUVlVHHNLQJWRH[SODLQWKHLU RUGLQDQFHjVLPSDFWRQVSHHFK6HHLGDW mFDXVHl0RYLQJWRWKHFRQVWLWXWLRQDOLW\RIWKHRUGLQDQFHWKH FRXUWUHMHFWHGPRVWRISODLQWLIIVjDUJXPHQWVDVZLWKRXWPHULW 7KHPDMRULW\DOVRVWDWHVWKDWWKHsHKRYDKjV:LWQHVVHVmPD\ 7KHFRXUWGLGKRZHYHUILQGWKUHHSURYLVLRQVRIWKHRUGLQDQFH VSUHDG WKHLU PHVVDJH DW VWRUHV RQ VWUHHW FRUQHUV LQ DQGRQHSURYLVLRQRIDQDGPLQLVWUDWLYHIRUPVRPHRIZKLFK UHVWDXUDQWVLQSDUNVDQGRWKHUSXEOLFIRUXPVl0DMRULW\2S SODLQWLIIVGLGQRWVSHFLILFDOO\FKDOOHQJHLQWKHLUFRPSODLQW DW7KH6XSUHPH&RXUWKRZHYHUKDVVWUHVVHGWKHXQLTXH SRWHQWLDOO\ FRQVWLWXWLRQDOO\ WURXEOLQJ DQG WKHUHIRUH WRRN UROH RI GRRUWRGRRU VROLFLWDWLRQ DV D PHDQV RI DFWLRQWRDGGUHVVWKRVHFRQFHUQV)LUVWWKHFRXUWIRXQGWKDW FRPPXQLFDWLRQVWDWLQJWKDWmDVHYHU\SHUVRQDFTXDLQWHGZLWK WKH SPWLPHUHVWUDLQWFRQWDLQHGLQWKHRUGLQDQFHZDVDQ SROLWLFDOOLIHNQRZVGRRUWRGRRUFDPSDLJQLQJLVRQHRIWKH XQUHDVRQDEOHUHVWULFWLRQRQWLPHDQGRUGHUHGWKH9LOODJHWR PRVWDFFHSWHGWHFKQLTXHVRIVHHNLQJSROLWLFDOVXSSRUW FKDQJHWKHWLPHUHVWUDLQWWRDOORZIRUFDQYDVVLQJGXULQJDOO 'RRUWRGRRUGLVWULEXWLRQRIFLUFXODUVLVHVVHQWLDOWRWKHSRRUO\ GD\OLJKWKRXUV6HFRQGLWIRXQGWKDWWKHVHFWLRQRIWKH1R ILQDQFHGFDXVHVRIOLWWOHSHRSOHl0DUWLQY&LW\RI6WUXWKHUV 6ROLFLWDWLRQ)RUPZKLFKVLQJOHGRXWsHKRYDKjV:LWQHVVHVZDV 86 , EHOLHYH WKDW WKLV UHDVRQLQJ XQFRQVWLWXWLRQDO DQG RUGHUHG WKH 9LOODJH WR GHOHWH DQ\ DSSOLHVZLWKHTXDOIRUFHWRWKHFRPPXQLFDWLRQRIUHOLJLRXV UHIHUHQFH WR sHKRYDKjV :LWQHVVHV IURP WKH 1R 6ROLFLWDWLRQ EHOLHIV7KHDYDLODELOLW\WKHUHIRUHRIRWKHURXWOHWVIRUVXFK )RUP 7KLUG LW IRXQG WKDW LQ RUGHU IRU WKH RUGLQDQFHjV VSHHFK GRHV QRW DOOHYLDWH WKH VSHFLDO EXUGHQ WKDW WKLV mDGGLWLRQDO LQIRUPDWLRQl UHTXLUHPHQW WR EH FRQVWLWXWLRQDO RUGLQDQFHSODFHVRQGRRUWRGRRUVROLFLWDWLRQ sHKRYDKjV:LWQHVVHVQHHGRQO\mQRWHRQWKHDSSOLFDWLRQWKDW >WKH\@VHHN>@WRFDQYDVVDVSDUWRIWKHsHKRYDKjV:LWQHVVl 7KH QDUURZO\ WDLORUHG UHTXLUHPHQW GHPDQGV D EDODQFH $FFRUGLQJO\WKHFRXUWFRQVWUXHGWKHSURYLVLRQWRUHTXLUHRQO\ EHWZHHQWKHOHJLWLPDWHLQWHUHVWVRIWKHJRYHUQPHQWDQGWKH WKDW)LQDOO\LWIRXQGWKDWUHTXLULQJSODLQWLIIVWROLVWRQWKH FRQVWLWXWLRQDOULJKWVRILQGLYLGXDOV+RZHYHUWKHPDMRULW\ 5HJLVWUDWLRQ)RUPHDFKUHVLGHQFHWKH\LQWHQGHGWRYLVLWZDV RSLQLRQFRQFOXGHVLQDYHU\JHQHUDOL]HGZD\WKDWWKH9LOODJH mDQ RQHURXV UHJXODWLRQ WKDW FRXOG SRWHQWLDOO\ YLRODWH WKH RI6WUDWWRQjVUHJLVWUDWLRQUHTXLUHPHQWLVFRQVWLWXWLRQDOEHFDXVH H[HUFLVHRIFRQVWLWXWLRQDOULJKWVl KRZHYHUWKLVSUREOHPZDV LW mPRUH HIIHFWLYHO\ SURPRWHV WKH 9LOODJHjV LQWHUHVWl FXUHGE\WKHm9LOODJHDOORZLQJD5HJLVWUDQWWRDWWDFKWRWKH 0DMRULW\ 2S DW %XW MXVW DV WKH PDMRULW\ DFFXVHV WKH 5HJLVWUDWLRQ)RUPDOLVWRIZLOOLQJ9LOODJHUHVLGHQWVZKLFKLV GLVVHQWRIDVVXPLQJWKDWWKRVHZKRLQWHQGWRFRPPLWIUDXG SURYLGHGE\WKH0D\RUjVRIILFHl,WDSSHDUVIURPWKHUHFRUG ZRXOGUHJLVWHUDVVDOHVSHRSOHWKHPDMRULW\DVVXPHV LQP\ WKDWWKLVZDVDYROXQWDU\PHDVXUHWDNHQE\WKH9LOODJHSULRU WRWKHODZVXLW :DWFKWRZHU%LEOHHWDOY 1RV 1RV :DWFKWRZHU%LEOHHWDOY 9LOODJHRI6WUDWWRQHWDO 9LOODJHRI6WUDWWRQHWDO 8QVDWLVILHGZLWKWKHVFRSHRIWKLVUHOLHISODLQWLIIVILOHGD ZLWKRXWDWWKHVDPHWLPHEDQQLQJRUVLJQLILFDQWO\UHVWULFWLQJ WLPHO\QRWLFHRIDSSHDOIURPWKHFRXUWjVMXGJPHQW7KHQRWLFH DVXEVWDQWLDOTXDQWLW\RIVSHHFKWKDWGRHVQRWFUHDWHWKHVDPH UHDGV m3ODLQWLIIV KHUHE\ DSSHDO WKRVH SDUWV RI WKH HYLOVl,GDWQ >GLVWULFW FRXUWjV@ 2UGHU ZKLFK XSKROG WKH FRQVWLWXWLRQDOLW\>@IDFLDOO\DQGDVDSSOLHGWRWKH3ODLQWLIIVl ,QWKHSUHVHQWFDVHWKH9LOODJHKDVDUWLFXODWHGDOHJLWLPDWH RIWKHRUGLQDQFH LQWHUHVW LQ HOLPLQDWLQJ WZR HYLOV n IUDXG DQG XQZDQWHG DQQR\DQFH7KHTXHVWLRQWKHQLVZKHWKHUWKHPHDQVFKRVHQ ,QDGGLWLRQWRILOLQJDQDSSHDOSODLQWLIIVEDVHGXSRQWKH E\WKH9LOODJHWRLPSOHPHQWLWVJRDOVVLJQLILFDQWO\UHVWULFWVD MXGJPHQW RQ WKH PHULWV ILOHG D PRWLRQ IRU DWWRUQH\Vj IHHV VXEVWDQWLDOTXDQWLW\RIVSHHFKWKDWGRHVQRWFUHDWHWKHVDPH SXUVXDQWWR86& 7KHGLVWULFWFRXUWGHWHUPLQHG HYLOV,DPRIWKHRSLQLRQWKDWWKHRUGLQDQFHGRHVMXVWWKDW WKDWSODLQWLIIVZHUHDSUHYDLOLQJSDUW\DQGWKHUHIRUHHQWLWOHGWR DWWRUQH\VjIHHV$IWHUUHGXFLQJWKHUHTXHVWHGDZDUGWKHFRXUW )LUVWE\VXEMHFWLQJQRQFRPPHUFLDOVROLFLWDWLRQWRLWVSHUPLW DZDUGHG SODLQWLIIV LQ DWWRUQH\Vj IHHV DQG FRVWV UHTXLUHPHQWVWKHRUGLQDQFHUHVWULFWVDVXEVWDQWLDODPRXQWRI 'HIHQGDQWV ILOHG D WLPHO\ QRWLFH RI DSSHDO IURP WKDW VSHHFKXQUHODWHGWRWKHSUHYHQWLRQRIIUDXG7KHRUGLQDQFH MXGJPHQW UHTXLUHVDSHUPLWQRWRQO\IRUWKRVHZLVKLQJWRHQJDJHLQVDOHV WUDQVDFWLRQVnDSRVVLEOHDYHQXHIRUIUDXGnEXWDOVRIRU 7KHDSSHDOVDUHQRZFRQVROLGDWHGDQGEHIRUHXV WKRVH ZLVKLQJ WR HQJDJH LQ SROLWLFDO UHOLJLRXV RU VRFLDO DGYRFDF\ ,QGHHG WKH 9LOODJHjV RZQ m1R 6ROLFLWDWLRQ ,,&2167,787,21$/,7<2)7+(25',1$1&( 5HJLVWUDWLRQ)RUPlDFNQRZOHGJHVWKDWWKHRUGLQDQFHUHDFKHV SROLWLFDOFDQGLGDWHV&KULVWPDVFDUROHUVDQGFDPSDLJQHUVIRU 7KH )LUVW $PHQGPHQW WR WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ VRFLDOLVVXHVQRQHRIZKRPFUHDWHWKHWKUHDWRIIUDXGWKDWWKH SURYLGHVm&RQJUHVVVKDOOPDNHQRODZSURKLELWLQJWKH 9LOODJHLQWHQGHGWRDGGUHVV7KHRUGLQDQFHWKHUHIRUHEXUGHQV IUHHH[HUFLVH>RIUHOLJLRQ@ RUDEULGJLQJWKHIUHHGRPRIVSHHFK VXEVWDQWLDOO\PRUHVSHHFKWKDQLVQHFHVVDU\WRSURPRWHWKH RURIWKHSUHVVl86 & $%DPHQG,7KH6XSUHPH&RXUW OHJLWLPDWH JRYHUQPHQW LQWHUHVW RI IUDXG SURWHFWLRQ 6HH KDVPDGHWKH)LUVW$PHQGPHQWj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jV GHFLVLRQ WR VWULNH WKH WLPH UHVWULFWLRQ SURYLVLRQ IURP WKH RUGLQDQFH DV ZH EHOLHYH LW LV VHYHUDEOH XQGHU 2KLR ODZ VHH :RPHQjV 0HG 3URIjO &RUS Y 9RLQRYLFK 7KH PDMRULW\ HPSKDVL]HV WKDW mWKH RUGLQDQFH GRHV QRW )G WK &LU ZH ZRXOG KDYH D PRUH GLIILFXOW IRUHFORVH WKH RSWLRQ RI JRLQJ GRRUWRGRRU RQH RQO\ QHHG WLPH ZLWK WKH FRXUWjV DWWHPSW WR UHZULWH WKDW SURYLVLRQ VHH :LOVRQ Y UHJLVWHU ILUVWl 0DMRULW\ 2S DW 6XFK DQ DUJXPHQW 1DWLRQDO /DERU 5HODWLRQV %G )G WK &LU LPSOLHVWKDWEHFDXVHDSHUVRQFDQHQJDJHLQVSHHFKRQFHKHRU UHFRJQL]LQJ WKDW mFRXUWV FDQQRW MXGLFLDOO\ UHGUDIW VWDWXWRU\ ODQJXDJHl VKH KDV REWDLQHG D SHUPLW DOO SHUPLW UHTXLUHPHQWV DUH :H DUH QRW FRQFHUQHG ZLWK WKH FRXUWjV UHYLVLRQ RI WKH DGPLQLVWUDWLYH IRUPV DV WKH\ DUH QRW SDUW RI WKH RUGLQDQFH /LNHZLVH ZH DUH QRW FRQVWLWXWLRQDO7KLVLVFOHDUO\QRWWKHODZ6HH&DQWZHOO FRQFHUQHG E\ WKH FRQVWUXFWLRQ RI WKH mDGGLWLRQDO LQIRUPDWLRQl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sXGJHFRQFXUULQJLQSDUW SURPXOJDWHGE\6WUDWWRQ$QGEHFDXVH6WUDWWRQjVRUGLQDQFH DQG GLVVHQWLQJ LQ SDUW , DJUHH ZLWK WKH PDMRULW\ WKDW WKH UHTXLUHVFDQYDVVHUVWRUHJLVWHUSULRUWRFDQYDVVLQJLWmFDUULHV 9LOODJHRI6WUDWWRQjVRUGLQDQFHLVQRWXQFRQVWLWXWLRQDOO\YDJXH ZLWKLW XQOHVVSURSHUO\FRQVWUDLQHG WKHSRZHUGLUHFWO\DQG DQGGRHVQRWYLRODWHWKHIUHHH[HUFLVHULJKWVRIWKHsHKRYDKjV VXEVWDQWLDOO\ WR DIIHFW VSHHFKl DQG PXVW WKHUHIRUH XQGHUJR :LWQHVVHV%HFDXVHWKHRUGLQDQFHLVFRQWHQWQHXWUDORQLWV )UHH6SHHFK&ODXVHDQDO\VLV5LOH\Y1DWLRQDO)HGjQRIWKH IDFH , DOVR DJUHH WKDW LQWHUPHGLDWH VFUXWLQ\ LV WKH SURSHU %OLQG86 $QGIRUVLPLODUUHDVRQVLW VWDQGDUGDSSOLFDEOHWRLWVUHYLHZ)LQDOO\,DJUHHZLWKWKH PXVWDOVRXQGHUJR)UHH([HUFLVH&ODXVHDQDO\VLV PDMRULW\jVGHFLVLRQWRDIILUPWKHDZDUGRIDWWRUQH\VIHHVWRWKH sHKRYDKjV:LWQHVVHV $)UHH6SHHFK&KDOOHQJHV ,GLVDJUHHKRZHYHUZLWKWKHPDMRULW\jVDSSOLFDWLRQRIWKH 3ODLQWLIIV FRQWHQG WKDW WKH RUGLQDQFHjV UHTXLUHPHQW WKDW LQWHUPHGLDWH VFUXWLQ\ VWDQGDUG DQG ZRXOG KROG WKDW WKH FDQYDVVHUVUHJLVWHUSULRUWRFDQYDVVLQJIDLOVWKH)UHH6SHHFK RUGLQDQFH YLRODWHV WKH )LUVW $PHQGPHQW E\ EXUGHQLQJ &ODXVH DQDO\VLV ERWK IDFLDOO\ DQG DV DSSOLHG WR WKHP VXEVWDQWLDOO\ PRUH VSHHFK WKDQ LV QHFHVVDU\ WR IXUWKHU WKH 3UHGLFWDEO\ PXFK RI WKHLU DUJXPHQW LV GHGLFDWHG WR 9LOODJHjV OHJLWLPDWH LQWHUHVWV 6HH :DUG Y 5RFN $JDLQVW DWWHPSWLQJ WR FRQYLQFH XV WKDW WKH RUGLQDQFH LV VXEMHFW WR 5DFLVP 86 &RQVHTXHQWO\,ZRXOG VWULFW VFUXWLQ\ $QG DV HTXDOO\ SUHGLFWDEOH WKH 9LOODJH GHFODUH WKDW WKH RUGLQDQFHjV SHUPLW UHTXLUHPHQW LV GHGLFDWHV D ODUJH SRUWLRQ RI LWV EULHI WR DUJXLQJ WKDW WKH XQFRQVWLWXWLRQDODVDSSOLHGWRWKHsHKRYDKjV:LWQHVVHV RUGLQDQFHLVVXEMHFWWRVRPHORZHUOHYHORIVFUXWLQ\ 7KH 6XSUHPH &RXUW KDV ORQJ VLQFH UHFRJQL]HG WKDW WKH /HYHORIs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mPD\EXUGHQVXEVWDQWLDOO\ DQDO\WLFDOIUDPHZRUNVHWIRUWKWKHUHDSSOLHVWRWKLVRUGLQDQFH PRUH VSHHFK WKDQ LV QHFHVVDU\ WR IXUWKHU WKH JRYHUQPHQWjV DVZHOO:HUHDFKWKLVFRQFOXVLRQEHFDXVHLQGLVFXVVLQJZKDW OHJLWLPDWHLQWHUHVWVl,GDW 5DWKHUDFRQWHQWQHXWUDO VWDQGDUG DSSOLHG WR WKH &RXQW\jV RUGLQDQFH WKH &RXUW UHJXODWLRQ PXVW mIRFXV>@ RQ WKH VRXUFH RI WKH HYLOV WKH FKDUDFWHUL]HG LWV DQDO\VLV DV RQH RI ZKHWKHU WKH ODZjV >JRYHUQPHQW@ VHHNV WR HOLPLQDWHl DQG mHOLPLQDWH WKHP UHVWULFWLRQVRQVSHHFKZHUHUHDVRQDEOHLQWKHFRQWH[WRIWLPH :DWFKWRZHU%LEOHHWDOY 1RV 1RV :DWFKWRZHU%LEOHHWDOY 9LOODJHRI6WUDWWRQHWDO 9LOODJHRI6WUDWWRQHWDO SODFH DQG PDQQHU $V WKDW DQDO\VLV DSSOLHV WR DOO ODZV 'ULYHUV $VVjQ ,QF Y %LVVHOO )G WK &LU WKURXJK ZKLFK JRYHUQPHQW UHJXODWHV RUDO RU ZULWWHQ H[SUHVVLRQ VHH &ODUN Y &RPPXQLW\ IRU &UHDWLYH 1RQ 9LROHQFH86 Q DQGWKHRUGLQDQFH :H KDYH QR WURXEOH DJUHHLQJ ZLWK WKH GLVWULFW FRXUWjV UHJXODWHV RUDO DQG ZULWWHQ H[SUHVVLRQ LW LVVXEMHFW WR WKH FRQFOXVLRQWKDWSODLQWLIIVZHUHLQIDFWWKHSUHYDLOLQJSDUW\$V UHDVRQDEOHWLPHSODFHDQGPDQQHUDQDO\VLV D UHVXOW RI WKH OLWLJDWLRQ WKHLU OHJDO UHODWLRQVKLS ZLWK WKH 9LOODJH ZDV DOWHUHG LQ D PDQQHU ZKLFK WKH\ VRXJKW 6HH 8QGHUWKDWIUDPHZRUNDODZWKDWLVFRQWHQWEDVHGLVVXEMHFW +HQVOH\ Y (FNHUKDUW 86 7KH WR VWULFW VFUXWLQ\ 6HH 7XUQHU %URDG 6\V ,QF Y )HGHUDO TXHVWLRQRIZKHWKHUWKLVVXFFHVVLVVXIILFLHQWWREHFRQVLGHUHG &RPPXQLFDWLRQV&RPPj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j IHHV LQ WKH DPRXQW RI RUGLQDQFHZDVFRQWHQWQHXWUDODQGRIJHQHUDODSSOLFDELOLW\DQG LQ RXW RI SRFNHW H[SHQVHV DQG WKHUHIRUH VXEMHFW WR LQWHUPHGLDWH VFUXWLQ\ 3ODLQWLIIV DUJXH IRUSDUDOHJDOFRVWV WKDW WKH GLVWULFW FRXUW HUUHG DQG XUJH XV WR UHYLHZ WKH RUGLQDQFHXQGHUVWULFWVFUXWLQ\6WULFWVFUXWLQ\DSSOLHVWKH\ 7KHUHIRUHZHDIILUPWKHGLVWULFWFRXUWjVMXGJPHQWDZDUGLQJ DUJXHEHFDXVHWKHRUGLQDQFHSRWHQWLDOO\LQIULQJHVXSRQWZR SODLQWLIIVDWWRUQH\VjIHHVDQGFRVWV FRQVWLWXWLRQDOO\ SURWHFWHG ULJKWVIUHHGRP RI VSHHFK DQG IUHHGRP RI UHOLJLRQWKHUHE\ PDNLQJ WKHLU FODLP D mK\EULG ,9&21&/86,21 ULJKWVl FODLP $QG WKH\ FRQWLQXH WKH 6XSUHPH &RXUW LQ (PSOR\PHQW 'LYLVLRQ Y 6PLWK 86 )RU WKH IRUHJRLQJ UHDVRQV ZH DIILUP WKH GLVWULFW FRXUWjV HVWDEOLVKHG WKDW VXFK FODLPV VXEMHFW WKH ODZ LQ TXHVWLRQ WR MXGJPHQWV VWULFWVFUXWLQ\+\EULGULJKWVFODLPVDVLGHWKH\DUJXHVWULFW VFUXWLQ\DSSOLHVEHFDXVHWKHRUGLQDQFHGLVFULPLQDWHVEDVHGRQ WKHFRQWHQWRIWKHVSHHFK7KDWGLVFULPLQDWLRQLVHYLGHQFHG E\WKHUHIHUHQFHWRsHKRYDKjV:LWQHVVHVLQWKH1R6ROLFLWDWLRQ )RUPDQGWKH0D\RUjVWHVWLPRQ\WKDWKHZRXOGQRWIXUQLVK sHKRYDKjV :LWQHVVHV ZLWK DQ H[HPSWLRQ IURP WKH WLPH UHVWUDLQWV,QHLWKHUFDVHWKH\FRQFOXGHZHPXVWDSSO\VWULFW VFUXWLQ\ZKHQUHYLHZLQJWKHRUGLQDQFH 7KH DOWHUQDWLYH ZRXOG EH WR DQDO\]H WKH RUGLQDQFH XQGHU WKH VWDQGDUG VHW IRUWK LQ 8QLWHG 6WDWHV Y 2j%ULHQ 86 DQG LWV SURJHQ\ 7KDW VWDQGDUG mLV OLWWOH LI DQ\ GLIIHUHQW IURP WKH VWDQGDUG DSSOLHG WR WLPH SODFH RU PDQQHU UHVWULFWLRQVl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mKDV GLVIDYRUHGVSHHFK6HH7XUQHU%URDG86DW QHYHUKHOGWKDWDQLQGLYLGXDOjVUHOLJLRXVEHOLHIVH[FXVHKLP 2Q LWV IDFH WKHUH LV QR LQGLFDWLRQ WKDW WKH RUGLQDQFH IURP FRPSOLDQFH ZLWK DQ RWKHUZLVH YDOLG ODZ SURKLELWLQJ GLVWLQJXLVKHV EHWZHHQ IDYRUHG DQG GLVIDYRUHG VSHHFK LW FRQGXFWWKDWWKH6WDWHLVIUHHWRUHJXODWHl6PLWK 86DW UHTXLUHV DOO LQGLYLGXDOV VHHNLQJ WR FDQYDVV WR UHJLVWHU 2XUUHYLHZLQGLFDWHVWKDWWKHRUGLQDQFHLVYDOLGDQG LUUHVSHFWLYHRIWKHFRQWHQWRIWKHLUPHVVDJH6HH+HIIURQY WKHUHIRUHSODLQWLIIVPXVWFRPSO\ZLWKLW ,QWHUQDWLRQDO6RFj\IRU.ULVKQD&RQVFLRXVQHVV,QF86 1RU GR ZH ILQG DQ\ HYLGHQFH WKDW WKH ,QFRQFOXVLRQZHDIILUPWKHGLVWULFWFRXUWjVMXGJPHQWWKDW 9LOODJHjV SXUSRVH LQ SURPXOJDWLQJ WKH RUGLQDQFH ZDV WR WKHRUGLQDQFHGRHVQRWYLRODWHSODLQWLIIVj)LUVW$PHQGPHQW UHJXODWHVSHHFKEDVHGRQWKHPHVVDJHLWFRQYH\V,QVWHDGRXU ULJKWVDQGZHGHQ\WKHPDQH[HPSWLRQIURPFRPSO\LQJZLWK UHYLHZ LQGLFDWHV WKDW WKH 9LOODJHjV SULQFLSDO REMHFWLYH LQ WKHRUGLQDQFH:HQRZUHYLHZWKH9LOODJHjVFKDOOHQJHVWRWKH SURPXOJDWLQJWKHRUGLQDQFHZDVWRSUHYHQWIUDXGDQGSURWHFW GLVWULFWFRXUWjVMXGJPHQWDZDUGLQJSODLQWLIIVDWWRUQH\VjIHHV WKHSULYDF\LQWHUHVWVRIWKHUHVLGHQWVRIWKH9LOODJH6HH:DUG Y5RFN$JDLQVW5DFLVP 86 ,,,$77251(<6j)((6 7KHHYLGHQFHSODLQWLIIV FLWHLQVXSSRUWRIWKHLUDUJXPHQW %ULHIO\WKH9LOODJHDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGLQ PLVVHV WKH PDUN 7KDW WKH 1R 6ROLFLWDWLRQ )RUP OLVWHG DZDUGLQJDWWRUQH\VjIHHVE\FRQFOXGLQJ WKDWSODLQWLIIVZHUH sHKRYDKjV :LWQHVVHV LV QRW HYLGHQFH WKDW WKH 9LOODJHjV WKH SUHYDLOLQJ SDUW\ DQG WKDW WKH\ REWDLQHG VXEVWDQWLDO SXUSRVHLQSURPXOJDWLQJWKHRUGLQDQFHZDVWRUHVWULFWWKHLU UHOLHI DQG ZHUH WKXV HQWLWOHG WR FRPSHQVDWLRQ IRU WKH WLPH VSHHFK UDWKHULWLVHYLGHQFHRIWKH9LOODJHjVDGPLQLVWUDWLRQ WKHLUDWWRUQH\VH[SHQGHGRQWKHHQWLUHFRXUVHRIWKHOLWLJDWLRQ RIWKHRUGLQDQFH$QGWKDWHYLGHQFHGRHVQRWLQGLFDWHWKDWWKH ,WFRQWHQGVWKDWSODLQWLIIVjUHOLHIZDVVRVPDOODQGQRWRIWKH 9LOODJHDSSOLHGWKHRUGLQDQFHXQHTXDOO\,WPD\VLPSO\EH W\SH VRXJKWWKDW WKH\ FDQQRW EH FRQVLGHUHG WKH SUHYDLOLQJ WKDWsHKRYDKjV:LWQHVVHVDORQJZLWKWKHRWKHURUJDQL]DWLRQV SDUW\$QGHYHQLIWKH\DUHE\QRPHDQVGLGWKH\REWDLQWKH OLVWHGRQWKHIRUPFDQYDVVHGRUVROLFLWHGPRUHIUHTXHQWO\WKDQ UHOLHIIRUZKLFKWKH\KRSHGEHLQJH[HPSWHGIURPFRPSO\LQJ RWKHUJURXSVWKHUHE\PDNLQJLWHIILFLHQWWRSODFHWKHLUQDPH ZLWK WKH RUGLQDQFHDQG WKHUHIRUH FDQQRW EH FRQVLGHUHG WR RQWKHIRUP/LNHZLVHWKHWHVWLPRQ\RIWKH0D\RUWKDWKH KDYHDFKLHYHGVXEVWDQWLDOVXFFHVV ZRXOGQRWJUDQWsHKRYDKjV:LWQHVVHVDQH[HPSWLRQIURPWKH RUGLQDQFHjVKRXUVUHVWULFWLRQLVQRWHYLGHQFHRIWKHSXUSRVHRI ,QUHYLHZLQJDQDZDUGRIDWWRUQH\VjIHHVXQGHU ZH WKH9LOODJHLQSURPXOJDWLQJWKHRUGLQDQFH1RULVLWHYLGHQFH UHYLHZ WKH IDFWXDO ILQGLQJV XQGHUO\LQJ WKH GLVWULFW FRXUWjV RI WKH 9LOODJHjV DSSOLFDWLRQ RI WKH RUGLQDQFH DV SODLQWLIIV GHWHUPLQDWLRQRISUHYDLOLQJVWDWXVIRUFOHDUHUURUDQGLWVDZDUG KDYHQRWDSSOLHGIRUDQH[HPSWLRQ:HGRQRWHDVWKHGLVWULFW RI DWWRUQH\Vj IHHV IRU DEXVH RI GLVFUHWLRQ 6HH *UHJRU\ Y FRXUW GLG WKDW ZHUH ZH WR ILQG GLVSDUDWH WUHDWPHQW LQ WKH 6KHOE\&RXQW\)G WK&LU m$GLVWULFW JUDQWLQJRIH[HPSWLRQVIURPWKHWLPHUHVWUDLQWVZHZRXOGEH FRXUWDEXVHVLWVGLVFUHWLRQZKHQLWUHOLHVRQFOHDUO\HUURQHRXV WURXEOHG+RZHYHUDVRXUUHYLHZILQGVQRWKLQJRIWKHVRUW ILQGLQJVRIIDFWVlRUmZKHQLWLPSURSHUO\DSSOLHVWKHODZRU ZH EHOLHYH WKH RUGLQDQFH LV QHXWUDO RQ LWV IDFH DQG WKH XVHVDQHUURQHRXVOHJDOVWDQGDUGl2ZQHU2SHUDWRU,QGHS :DWFKWRZHU%LEOHHWDOY 1RV 1RV :DWFKWRZHU%LEOHHWDOY 9LOODJHRI6WUDWWRQHWDO 9LOODJHRI6WUDWWRQHWDO 9LOODJHjV SXUSRVH LQ SURPXOJDWLQJ LW ZDV FRQWHQW QHXWUDO RUGHUHGWKH9LOODJHWRUHPRYHWKDWODQJXDJH7KHRUGLQDQFH 7KHUHIRUHZHKROGWKDWLWLVVXEMHFWWRLQWHUPHGLDWHVFUXWLQ\ LVDOVRQHXWUDOLQLWVRSHUDWLRQ LWLPSRVHVWKHVDPHEXUGHQVRQ DOOLQGLYLGXDOVRURUJDQL]DWLRQVVHHNLQJWRFDQYDVVGRRUWR ,Q VR KROGLQJ ZH UHMHFW SODLQWLIIVj DVVHUWLRQ WKDW WKH GRRU 6HH LG DW )LQDOO\ ZH EHOLHYH WKDW WKH 9LOODJH 6XSUHPH&RXUWHVWDEOLVKHGLQ(PSOR\PHQW'LYLVLRQY6PLWK RIILFLDOVKDYHDSSOLHGWKHRUGLQDQFHQHXWUDOO\7KHUHLVQR WKDWODZVFKDOOHQJHGE\K\EULG ULJKWVFODLPVDUHVXEMHFWWR LQGLFDWLRQ WKDW WKH 0D\RU GLVFULPLQDWHG DJDLQVW UHOLJLRXV VWULFWVFUXWLQ\:KLOHPXFKGHEDWHKDVUHYROYHGDURXQGWKH RUJDQL]DWLRQV LQ GHWHUPLQLQJ ZKHWKHU WR JUDQW SHUPLWV &RXUWjVODQJXDJHLQ6PLWKZHGRQRWEHOLHYHWKH&RXUWKHOG ,QGHHGWKHUHLVOLWWOHURRPIRUKLPWRPDNHDQ\GHFLVLRQRQFH WKHUHQRUKDVLWHYHUKHOGWKDWDGLIIHUHQWOHYHORIVFUXWLQ\ WKHDSSOLFDQWFRPSOHWHVWKH5HJLVWUDWLRQ)RUP$QGFRQWUDU\ DSSOLHV WR ODZV WKDW SRWHQWLDOO\ DIIHFW K\EULG ULJKWV ,Q WRSODLQWLIIVjDVVHUWLRQWKH0D\RUjVVWDWHPHQWVWKDWKHZRXOG UHMHFWLQJWKHSODLQWLIIVjDUJXPHQWWKDWmµSURKLELWLQJWKHIUHH QRW JUDQW sHKRYDKjV :LWQHVVHV DQ H[HPSWLRQ IURP WKH H[HUFLVH >RI UHOLJLRQ@j LQFOXGHV UHTXLULQJ DQ\ LQGLYLGXDO WR RUGLQDQFHjVWLPHUHVWULFWLRQVRQFDQYDVVLQJGRHVQRWFRPSHO REVHUYHDJHQHUDOO\DSSOLFDEOHODZlWKH6PLWK&RXUWQRWHG D ILQGLQJ WKDW KH XQHTXDOO\ DSSOLHG WKH RUGLQDQFH +H KDV QHYHU DSSOLHG WKH RUGLQDQFHj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mLPSRVH>V@EXUGHQVRQO\RQFRQGXFWPRWLYDWHGE\UHOLJLRXV EHOLHIHVVHQWLDOWRWKHSURWHFWLRQRIWKHULJKWVJXDUDQWHHGE\ 6PLWK 86DW7KDWODQJXDJHZDVGLFWDDQG WKH)UHH([HUFLVH&ODXVHl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jIUHHH[HUFLVHULJKWV WKDWWKHRQHSUREDEO\KDGDORWWRGRZLWKWKHRWKHU %DVHGLQ SDUW XSRQ WKH ODFN RI DQ H[SODQDWLRQ IURP WKH &RXUW ZH ([HPSWLRQIURPWKH2UGLQDQFH GHFOLQHGWRDOWHUWKHVWDQGDUGRIVFUXWLQ\IRUODZVDIIHFWLQJ K\EULGULJKWVXQWLOWKH6XSUHPH&RXUWSURYLGHGJXLGDQFH7KH )RU WKH VDPH UHDVRQ ZH GHQ\ SODLQWLIIVj UHTXHVW IRU DQ &RXUW KDV \HW WR SURYLGH VXFK JXLGDQFH DQG WKHUHIRUH ZH H[HPSWLRQIURPWKHUHTXLUHPHQWVRIWKHRUGLQDQFH3ODLQWLIIV DGKHUHWRRXUGHFLVLRQLQ.LVVLQJHUDQGFRQWLQXHWRGHFOLQHWR DUJXH WKDW WKH\ VKRXOG EH JUDQWHG DQ H[HPSWLRQ IURP WKH DOWHUWKHVWDQGDUGRIVFUXWLQ\$FFRUGLQJO\WKHGLVWULFWFRXUW RUGLQDQFH EHFDXVH VHHNLQJ SHUPLVVLRQ WR VSUHDG WKHLU ZDVFRUUHFWWRVXEMHFWWKHRUGLQDQFHWRLQWHUPHGLDWHVFUXWLQ\ UHOLJLRXV EHOLHIV YLRODWHV WKHLU UHOLJLRXV FRQYLFWLRQV 7R LQDQDO\]LQJWKHPHULWVRISODLQWLIIVjIUHHVSHHFKFODLPV VXSSRUWWKHLUDUJXPHQWWKH\FLWH:LVFRQVLQYL@Q QRW RQH >RI WKRVH 3ODLQWLIIV DUJXH WKH RUGLQDQFH LV XQFRQVWLWXWLRQDOO\ RYHUEURDG EHFDXVH LW ZRXOG KDYH WKH HIIHFW RI SURKLELWLQJ LQGLYLGXDOV IURP JRLQJ GRRUWRGRRU WR HQJDJH LQ SROLWLFDO VSHHFK ZLWKRXW ILUVW REWDLQLQJ D SHUPLW $Q HIIHFW WKH\ 3ODLQWLIIV DQG GLVVHQW DUJXH WKDW WKH 9LOODJH FRXOG KDYH LQFOXGHG LQ DOOHJHWKH6XSUHPH&RXUWHIIHFWLYHO\PDGHXQFRQVWLWXWLRQDO WKH RUGLQDQFH DQ H[FHSWLRQ IURP LWV UHTXLUHPHQWV IRU sHKRYDKjV :LWQHVVHV ,I WKH 9LOODJH KDG LQFOXGHG VXFK DQ H[FHSWLRQ KRZHYHU WKH LQ 0F,QW\UH Y 2KLR (OHFWLRQV &RPPLVVLRQ 86 RUGLQDQFH ZRXOG QRW EH FRQWHQW QHXWUDO 7KHUHIRUH ZH GR QRW EHOLHYH WKDW WR EH D YLDEOH DOWHUQDWLYH KHUH :DWFKWRZHU%LEOHHWDOY 1RV 1RV :DWFKWRZHU%LEOHHWDOY 9LOODJHRI6WUDWWRQHWDO 9LOODJHRI6WUDWWRQHWDO VXFKDVsHKRYDKjV:LWQHVVHVRUDUHLQVWHDGSHUSHWUDWRUVRI E\ LQYDOLGDWLQJ DQ 2KLR VWDWXWH WKDW SURKLELWHG WKH IUDXGXVLQJDsHKRYDKj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sHKRYDKjV:LWQHVVHV0RUHRYHUWKH UHTXLUHPHQWVJRIXUWKHUWKDQDQWLIUDXGODZVLQGHWHUULQJVXFK 0F,QW\UHjV KROGLQJ PLVVHV 6WUDWWRQjV RUGLQDQFH 7KH LQGLYLGXDOV IURP FRPPLWWLQJ IUDXG EHFDXVH WKH\ NQRZ WKH 0F,QW\UH &RXUW HVWDEOLVKHG D )LUVW $PHQGPHQW ULJKW WR 9LOODJH KDV LQIRUPDWLRQ WKDW ZRXOG PDNH LW HDVLHU WR GLVWULEXWHSROLWLFDOSDPSKOHWVDQRQ\PRXVO\6HHLGDW DSSUHKHQGWKHPZHUHWKH\WRGRVR :HDJUHHWKDWUHDGEURDGO\WKHRSLQLRQDUJXDEO\LQFOXGHVLQ WKDWULJKWWKHDELOLW\WRVSHDNWRRWKHUVDQRQ\PRXVO\%XWZH :HEHOLHYHWKHGLVVHQWPLVXQGHUVWDQGVRXUUHDVRQLQJDQG GRQRWXQGHUVWDQGKRZ6WUDWWRQjVRUGLQDQFHLQKLELWVWKLVULJKW WKHHIIHFWRIWKHUHJLVWUDWLRQUHTXLUHPHQW,WVDUJXPHQWWKDW $V ZH VHH LW LQGLYLGXDOV JRLQJ GRRUWRGRRU WR HQJDJH LQ WKH UHTXLUHPHQW EXUGHQV VXEVWDQWLDOO\ PRUH VSHHFK WKDQ SROLWLFDOVSHHFKDUHQRWDQRQ\PRXVE\YLUWXHRIWKHIDFWWKDW QHFHVVDU\EHFDXVHLWUHTXLUHVUHJLVWUDWLRQmQRWRQO\IRUWKRVH WKH\ UHYHDO D SRUWLRQ RI WKHLU LGHQWLWLHVWKHLU SK\VLFDO ZLVKLQJWRHQJDJHLQVDOHVWUDQVDFWLRQVDSRVVLEOHDYHQXHIRU LGHQWLWLHVWRWKHUHVLGHQWVWKH\FDQYDVV,QRWKHUZRUGVWKH IUDXGEXW DOVR IRU WKRVH ZLVKLQJ WR HQJDJH LQ SROLWLFDO RUGLQDQFHGRHVQRWUHTXLUHFDQYDVVHUVJRLQJGRRUWRGRRUWR UHOLJLRXV RU VRFLDO DGYRFDF\l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mWRSURWHFWXQSRSXODULQGLYLGXDOV ZRXOG EH QLFH LI WKH 9LOODJH KDG WKH DELOLW\ WR GLVFHUQ LQ IURPUHWDOLDWLRQDQGWKHLULGHDVIURPVXSSUHVVLRQl,G2QFH DGYDQFH ZKR RU ZKDW W\SH RI JURXSV ZLOO FRPPLW IUDXG WKHSROLWLFDOFDQYDVVHUVDUHEHIRUHWKHUHVLGHQWWKHDELOLW\WR +RZHYHULWGRHVQRW$QGDEVHQWVXFKDELOLW\WKH9LOODJH SURWHFWWKHPIURPWKRVHGDQJHUVLVVXEVWDQWLDOO\GLPLQLVKHG GRHVQRWEXUGHQVXEVWDQWLDOO\PRUHVSHHFKWKDQQHFHVVDU\E\ $FFRUGLQJO\WKHUHLVOLWWOHUHDVRQWRUHDGWKH&RXUWj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lZLWKRXWWKHRUGLQDQFH1DWLRQDO 7UHDVXU\(PSOR\HHV8QLRQ86DW$FFRUGLQJO\ LL8QFRQVWLWXWLRQDOO\9DJXH WKH9LOODJHZDVHQWLWOHGWRSURPXOJDWHDQRUGLQDQFHWKDWZDV QDUURZO\WDLORUHGWRSURPRWHLWVLQWHUHVWVLQSUHYHQWLQJIUDXG $ODZLVXQFRQVWLWXWLRQDOO\YDJXHZKHQLWGRHVQRWDIIRUG DQGLQSURWHFWLQJLWVUHVLGHQWVIURPXQZDQWHGDQQR\DQFH DmSHUVRQRIRUGLQDU\LQWHOOLJHQFHDUHDVRQDEOHRSSRUWXQLW\WR NQRZZKDWLVSURKLELWHGl*UD\QHGY&LW\RI5RFNIRUG $QGIURPRXUUHYLHZRIWKHUHFRUGZHEHOLHYHWKDWLVZKDW 86 RUZKHQLWDXWKRUL]HVRUHQFRXUDJHUV WKH 9LOODJH GLG 7KH RUGLQDQFH SURPRWHV WKH 9LOODJHjV DUELWUDU\ DQG GLVFULPLQDWRU\ HQIRUFHPHQW VHH .ROHQGHU Y LQWHUHVWLQSURWHFWLQJWKHSULYDF\RILWVUHVLGHQWVE\FUHDWLQJ /DZVRQ86 3XWPRUHVSHFLILFDOO\D DGGLWLRQDO GHWHUUHQWV IRU FDQYDVVHUV LQFOXGLQJ sHKRYDKjV VWDWXWHLVYDJXHZKHQWKHVWDWHKDVmIDLO>HG@WRSURYLGHVXFK :LWQHVVHVZKRDUHFRQVLGHULQJLJQRULQJDUHVLGHQWjVZLVKHV PLQLPDOJXLGHOLQHVlWKDWZRXOGSUHYHQWmDVWDQGDUGOHVVVZHHS DQGFDQYDVVLQJWKHUHVLGHQWjVKRPH$sHKRYDKjV:LWQHVVLV >WKDW@ DOORZV SROLFHPHQ SURVHFXWRUV DQG MXULHV WR SXUVXH PRUH OLNHO\ WR UHVSHFW WKH UHVLGHQWjV ZLVKHV QRW WR EH WKHLU SHUVRQDO SUHGLOHFWLRQVl .ROHQGHU 86 DW FDQYDVVHGZKHQDFULPLQDOSHQDOW\DOEHLWDOLJKWSHQDOW\LV TXRWLQJ 6PLWK Y *RJXHQ 86 FRQQHFWHGWRVXFKFRQGXFWLQDGGLWLRQWRWKHWKUHDWRIFLYLO DOWHUDWLRQV LQ WKH RULJLQDO 7KH RUGLQDQFH LV VXFK D ODZ DFWLRQ7KXVWKHSHQDOW\DWWDFKHGWRFDQYDVVLQJWKHKRXVHRI SODLQWLIIV FRQWHQG EHFDXVH WKH PHDQLQJV RI WKH WHUPV D UHVLGHQW ZLWK D 1R 6ROLFLWDWLRQ 6LJQ PRUH HIIHFWLYHO\ mVROLFLWRUlmFDQYDVVHUlDQGmFDXVHlDUHQRWFOHDU7KH\RIIHU SURPRWHVWKH9LOODJHjVLQWHUHVW7KHRUGLQDQFHjVUHJLVWUDWLRQ QRH[SODQDWLRQIRUZK\mVROLFLWRUlDQGmFDQYDVVHUlDUHYDJXH UHTXLUHPHQWV DOVR OLNHO\ GHWHU sHKRYDKjV :LWQHVVHV IURP EXW FRQWHQG WKDW WKH 6XSUHPH &RXUW KDV IRXQG WKH WHUP FDQYDVVLQJ KRPHV ZLWK 1R 6ROLFLWDWLRQ 6LJQV DQG IRUPV mFDXVHlWREHYDJXH EHFDXVHWKH\DUHDZDUHWKDWWKH9LOODJHQRZKDVLQIRUPDWLRQ QDPHDGGUHVVRUJDQL]DWLRQRUFDXVHKHOSIXOLQDSSUHKHQGLQJ :HILQGQRPHULWLQDQ\RIWKHVHDVVHUWLRQV2QO\WKHODVW VRPHRQH ZKR LJQRUHV D UHVLGHQWjV ZLVKHV 7KH H[WUD DVVHUWLRQUHTXLUHVDQ\H[SODQDWLRQ$FFRUGLQJWRSODLQWLIIV GHWHUUHQFH WKH RUGLQDQFH FUHDWHV SURPRWHV WKH 9LOODJHjV WKH6XSUHPH&RXUWjVGHFLVLRQLQ+\QHVY0D\RU &RXQFLO LQWHUHVWLQSURWHFWLQJLWVUHVLGHQWVIURPXQGXHDQQR\DQFHDQG RIWKH%RURXJKRI2UDGHOO86 HVWDEOLVKHG WKDWLQWHUHVWmZRXOGEHDFKLHYHGOHVVHIIHFWLYHO\DEVHQWWKH WKDW mWKH ZRUG µFDXVHj LV XQFRQVWLWXWLRQDOO\ YDJXHl >RUGLQDQFH@l:DUG 86DW 6SHFLILFDOO\WKH\SRLQWWRIRRWQRWHILYHRIWKHRSLQLRQZKLFK VWDWHVm,QWKHFLUFXPVWDQFHVRIWKLVFDVHWKHVHDOOHJDWLRQVDUH $V WR WKH ODWWHU PHWKRG RI IXUWKHULQJ WKH LQWHUHVWWKH HQRXJKWRSXWLQLVVXHWKHSUHFLVLRQRUODFNRISUHFLVLRQZLWK UHJLVWUDWLRQUHTXLUHPHQWWKHGLVVHQWPLVVWDWHVWKHLVVXH,WLV ZKLFK WKH RUGLQDQFH GHILQHV WKH FDWHJRULHV RI µFDXVHVj LW QRWZKHWKHUWKHUHTXLUHPHQWGHWHUVE\LQFUHDVLQJWKHGHJUHH FRYHUVl+\QHV86DWQ HPSKDVLVDGGHG 7KH RISXQLVKPHQW5DWKHULWLVZKHWKHUWKHUHTXLUHPHQWLQFUHDVHV WKHOLNHOLKRRGRISXQLVKPHQW,WGRHV 7KH9LOODJHjVLQWHUHVWLQSUHYHQWLQJIUDXGZRXOGDOVR EH (YHQ LI 0F,QW\UH ZHUH LPSOLFDWHG ZH ZRXOG ILQG WKH RUGLQDQFH FRQVWLWXWLRQDO RQ LWV IDFH ,Q UHYLHZLQJ 2KLRjV VWDWXWH WKH &RXUW DSSOLHG DFKLHYHG OHVV HIIHFWLYHO\ DEVHQW WKH RUGLQDQFH $EVHQW D VWULFW VFUXWLQ\ $V ZH KDYH DOUHDG\ QRWHG ZH DUH UHYLHZLQJ 6WUDWWRQj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jVPRGLILFDWLRQRIWKHZRUG WHVWLPRQ\ RI +HOHQ 0DF0XUUD\ 2KLR $VVLVWDQW $WWRUQH\ ZLWKWKHSKUDVHVmUHFRJQL]HGFKDULWDEOHlDQGm)HGHUDO6WDWH *HQHUDO WKH 9LOODJHjV 0D\RU DQG )UDQN %UX]]HVH WKH &RXQW\RU0XQLFLSDOl6SHFLILFDOO\WKH&RXUWVWDWHGWKDWWKH 9LOODJHjV6ROLFLWRU,QKHUWHVWLPRQ\0V0DF0XUUD\VWDWHG RUGLQDQFH mGRHV QRW H[SODLQ IRU H[DPSOH ZKHWKHU WKDW 2KLR KDV KDG GLIILFXOW\ ZLWK VHYHUDO JURXSV WKDW µ5HFRJQL]HGFKDULWDEOHFDXVHjPHDQVRQHUHFRJQL]HGE\WKH SHUSHWUDWHIUDXGVE\JRLQJGRRUWRGRRUSRVLQJDVVROLFLWRUVRU ,QWHUQDO5HYHQXH6HUYLFHDVWD[H[HPSWRURQHUHFRJQL]HGE\ FDQYDVVHUV$QGWKHWHVWLPRQ\RIWKH9LOODJHjV0D\RUDQGLWV VRPH FRPPXQLW\ DJHQF\ >DQG@ LW LV QRW FOHDU ZKDW LV 6ROLFLWRULQGLFDWHWKDWWKH9LOODJHZDVDZDUHRISUREOHPVLQ PHDQWE\Dµ)HGHUDO6WDWH&RXQW\RU0XQLFLSDOjlFDXVH,G RWKHU2KLRFLWLHVZLWKGRRUWRGRRUIUDXGZKHQLWSDVVHGWKH DW %HFDXVH 6WUDWWRQjV RUGLQDQFH GRHV QRW PRGLI\ WKH RUGLQDQFH 3ODLQWLIIV DUJXH WKH IDFW WKDW 2KLR KDV KDG WHUP FDXVH EXW LQFOXGHV DOO FDXVHV WKH KROGLQJ RI DQG WKH SUREOHPVZLWK VXFKIUDXGLVLQVXIILFLHQWWRHVWDEOLVKDUHDO UHDVRQLQJLQ+\QHVLVQRWDSSOLFDEOH DQWLFLSDWHG KDUP WKH\ ZRXOG LQVWHDG UHTXLUH WKDW 6WUDWWRQ LWVHOI KDYH KDG SUREOHPV ZLWK IUDXG EHIRUH LW FRXOG E$V$SSOLHG&KDOOHQJH SURPXOJDWH DQ RUGLQDQFH WR SUHYHQW IUDXG 7KDW DUJXPHQW LJQRUHV WKH IDFW WKDW WKH LQWHUHVW WKH RUGLQDQFH SURPRWHV LV ,QWKHFRQWH[WRIDQDVDSSOLHGFKDOOHQJHDODZUHTXLULQJ SUHYHQWLQJDQDQWLFLSDWHGKDUP,IZHUHTXLUHGWKH9LOODJHWR UHJLVWUDWLRQ SULRU WR HQJDJLQJ LQ VSHHFK ZRXOG SDVV ZDLWXQWLOLWKDGWURXEOHZLWKGRRUWRGRRUIUDXGZHZRXOGEH LQWHUPHGLDWHVFUXWLQ\LILWZHUHQDUURZO\WDLORUHGWRVHUYHD GHSULYLQJLWRIDSROLFHSRZHUWKH6XSUHPH&RXUWKDVPDGH VLJQLILFDQW JRYHUQPHQW LQWHUHVW DQG OHIW RSHQ DPSOH FOHDU PXQLFLSDOLWLHV SRVVHVV ,W DOVR LJQRUHV WKH SULQFLSOH DOWHUQDWLYHVIRUFRPPXQLFDWLRQ6HH1DWLRQDOLVW0RYHPHQW UHDIILUPHGE\WKH6XSUHPH&RXUWjVKROGLQJLQ&LW\RI(ULHY 86DW,IWKHLQWHUHVWLVLQUHGUHVVLQJSDVWKDUPRU 3DSjV$0 86 WKDWDFLW\PD\XVH SUHYHQWLQJ DQWLFLSDWHG KDUPV WKH JRYHUQPHQW PXVW HYLGHQFHIURPWKHH[SHULHQFHVRIRWKHUFLWLHVWKDWDUHVLPLODUO\ GHPRQVWUDWHWKDWWKHKDUPVDUHUHDO6HH(GHQILHOGY)DQH VLWXDWHGWRHVWDEOLVKDUHDVRQDEOHJURXQGWREHOLHYHWKDWDQ 86 $QDQWLFLSDWHGKDUPZRXOGEH DQWLFLSDWHGKDUPLVUHDO6HHDOVR&LW\RI5HQWRQY3OD\WLPH FRQVLGHUHG UHDO LI ZH GHWHUPLQHG WKDW mWKHUH >ZDV@ D 7KHDWUHV,QF86 $VPXQLFLSDOLWLHV UHDVRQDEOHJURXQGWRIHDUWKDWVHULRXVHYLO>ZRXOG@UHVXOWLI PD\WDNHWKHH[SHULHQFHVRIRWKHUPXQLFLSDOLWLHVLQWRDFFRXQW IUHHVSHHFK>ZHUH@SUDFWLFHGlZLWKRXWWKHUHJXODWLRQ8QLWHG ZHSD\GHIHUHQFHWRWKH9LOODJHjVSUHGLFWLYHMXGJPHQWDQGWKH GLVWULFW FRXUWjV ILQGLQJ LQ VXEVWDQFH WKDW mWKHUH >ZDV@ D $OWKRXJK WKH 9LOODJH KDV QRW EURXJKW DQ HQIRUFHPHQW DFWLRQ DJDLQVW SODLQWLIIV ZH EHOLHYH SODLQWLIIV KDYH VWDQGLQJ WR SURFHHG RQ WKHLU DV RXU VLVWHU FLUFXLWV KDYH DOVR KHOG WKDW WKH VWDWHjV LQWHUHVW LQ SURWHFWLQJ LWV DSSOLHG FKDOOHQJH 6HH %DEELWW Y 8QLWHG )DUP :RUNHUV 1DWjO 8QLRQ FLWL]HQV IURP XQGXH DQQR\DQFH LV VXIILFLHQW WR VXSSRUW VWDWXWHV IDFLQJ 86 %HFDXVH SODLQWLIIV KDYH mDOOHJHG DQ LQWHQWLRQ WR HQJDJH LQWHUPHGLDWH VFUXWLQ\ 6HH HJ 9DQ %HUJHQ Y 0LQQHVRWD )G LQ D FRXUVH RI FRQGXFW DUJXDEO\ DIIHFWHG ZLWK D FRQVWLWXWLRQDO LQWHUHVW EXW WK &LU ILQGLQJ WKDW 0LQQHVRWDjV LQWHUHVW LQ SURWHFWLQJ LWV SURVFULEHG E\ D VWDWXWH DQG WKHUH H[LVWV D FUHGLEOH WKUHDW RI SURVHFXWLRQ FLWL]HQV IURP XQZDQWHG DQQR\DQFHV ZDV D VXIILFLHQW LQWHUHVW WR UHJXODWH WKHUHXQGHUl WKH\ DUH QRW mUHTXLUHG WR DZDLW DQG XQGHUJR FULPLQDO DXWRPDWHG WHOHSKRQH FDOOV 3HQQV\OYDQLD $OOLDQFH IRU sREV (QHUJ\ SURVHFXWLRQ DV WKH VROH PHDQV RI VHHNLQJ UHOLHIl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jO&RPP86 DW +\QHV 86 DW $QG WKH KDUP WKH $ODZZRXOGEHFRQVLGHUHGQDUURZO\WDLORUHGWR SURPRWHWKHJRYHUQPHQWDOLQWHUHVWVLIWKHLQWHUHVWmZRXOGEH DFKLHYHGOHVVHIIHFWLYHO\DEVHQWWKHUHJXODWLRQl:DUG &RQWUDU\ WR :DWFKWRZHUjV DVVHUWLRQV DW RUDO DUJXPHQW WKH &RXUW LQ 86DW DQGWKHUHJXODWLRQGRHVQRWmEXUGHQVXEVWDQWLDOO\ 0DUWLQ Y &LW\ RI 6WUXWKHUV GLG QRW KROG WKDW D JRYHUQPHQWjV LQWHUHVW LQ PRUHVSHHFKWKDQLVQHFHVVDU\lLQIXUWKHULQJWKHLQWHUHVWLG SURWHFWLQJ LWV UHVLGHQWV IURP XQGXH DQQR\DQFH LQ WKHLU KRPHV LV $QGILQDOO\ZKLOHLWLVXQFOHDUH[DFWO\ZKDWFRQVWLWXWHVDPSOH LQVXIILFLHQW WR XSKROG DQ RUGLQDQFH VXFK D 6WUDWWRQjV $W EHVW WKH &RXUW DOWHUQDWLYHVIRUFRPPXQLFDWLRQLWLVFOHDUWKDWWKLVVWDQGDUG VDLG WKDW VXFK DQ LQWHUHVW LV LQVXIILFLHQW WR XSKROG DQ RUGLQDQFH IODWO\ GRHVQRWPHDQWKHOHDVWUHVWULFWLYHPHDQVRISURPRWLQJWKH SURKLELWLQJ GRRUWRGRRU FDQYDVVLQJ 6HH 0DUWLQ 86 DW LQWHUHVWLQTXHVWLRQ6HHLGDW )XUWKHU :DWFKWRZHUjV DUJXPHQW GHPRQVWUDWHV D PLVXQGHUVWDQGLQJ RI KRZ WKH RUGLQDQFH VHUYHV WKH 9LOODJHjV LQWHUHVW LQ SURWHFWLQJ LWV UHVLGHQWV IURP XQGXH DQQR\DQFHV 7KH LQWHUHVW SULPDULO\ VXSSRUWV WKH SRUWLRQ RI WKH $V DSSOLHG WR WKHP SODLQWLIIV DUJXH WKH RUGLQDQFHj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jV LQWHUHVW LQ SUHYHQWLQJ IUDXG LV 6WUDWWRQjV ,Q IDFW WKH &RXUWjV RSLQLRQV VHHP WR VXJJHVW WKH RSSRVLWH 7KH 6WDWHj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m7KLV OHVV VDQFWXDU\ RI WKH KRPH DQG VXEMHFW WR REMHFWLRQDEOH VSHHFK UHVWULFWLYHDOWHUQDWLYH DQDO\VLV KDV QHYHU EHHQ D SDUW RI WKH LQTXLU\ LQWR GRHV QRW PHDQ ZH PXVW EH FDSWLYHV HYHU\ZKHUH 7KXV ZH WKH YDOLGLW\ RI D WLPH SODFH DQG PDQQHU UHJXODWLRQ ,QVWHDG RXU FDVHV KDYH UHSHDWHGO\ KHOG WKDW LQGLYLGXDOjV DUH QRW UHTXLUHG WR TXLWH FOHDUO\ KROG WKDW UHVWULFWLRQV RQ WLPH SODFH RU PDQQHU RI SURWHFWHG ZHOFRPH XQZDQWHG VSHHFK LQWR WKHLU KRPHV DQG WKDW WKH VSHHFK DUH QRW LQYDOLG VLPSO\ EHFDXVH WKHUH LV VRPH LPDJLQDEOH DOWHUQDWLYH JRYHUQPHQW PD\ SURWHFW WKLV IUHHGRP WKDW PLJKW EH OHVV EXUGHQVRPH RQ VSHHFKl :DUG 86 DW )ULVE\ Y 6FKXOW] 86 LQWHUQDO FLWDWLRQV DQG LQWHUQDO FLWDWLRQV DQG TXRWDWLRQ PDUNV RPLWWHG TXRWDWLRQ PDUNV RPLWWHG VHH DOVR +\QHV 86 DW 6HYHUDO RI