5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 ,QUH0RUULV 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU DYRLGDQFHSRZHURIVHFWLRQ E 7KHUHIRUHZHILQGWKDW )LOH 1DPH DS 0RUULVjVUHOLDQFHRQWKHDOWHUQDWLYHKROGLQJRIWKHEDQNUXSWF\ FRXUWLVPLVSODFHG 81,7('67$7(6&28572)$33($/6 9,9DOXDWLRQRIWKH3URSHUW\ )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB )LQDOO\ 3RVV FKDOOHQJHV WKH EDQNUXSWF\ FRXUWjV JUDQW RI VXPPDU\MXGJPHQWIRU0RUULVE\TXHVWLRQLQJWKHXVHRIDQ DSSUDLVHGYDOXHRIIRUWKHSURSHUW\+HPDLQWDLQV ,QUH 0$5,/<1 ( 0255,6 ; WKDW UHSUHVHQWLQJ WKH DFTXLVLWLRQ FRVW RI WKH SURSHUW\ RYHU ILIWHHQ \HDUV DJR IRU WKH ODQG SOXV 'HEWRU BBBBBBBBBBBBBBBBBBBBBBBB IRUWKHEXLOGLQJ ZRXOGPRUHDFFXUDWHO\FDSWXUHLWV 1R YDOXH WKDQ 0RUULVjV DSSUDLVDO 5HVROXWLRQ RI WKLV LVVXH UHTXLUHVIXUWKHUGHYHORSPHQWRIWKHUHFRUGDQGLVWKHUHIRUH s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nsDFN%6WUHHS\0DJLVWUDWHsXGJH 6XEPLWWHG 'HFHPEHU 'HFLGHGDQG)LOHG $XJXVW %HIRUH :(//)25'6,/(5DQG%$7&+(/'(5 &LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ 21 %5,() $OH[DQGHU sXUF]HQNR &OHYHODQG 2KLR IRU $SSHOODQWsDPHV%'LHW]&DUO'5DIRWK)5,('0$1 ,QUH0RUULV 1R 1R ,QUH0RUULV 5800(// &203$1< /3$ VKH@IDLO>V@ WUXVWFDQDULVHZLWKRXWDIRUPDOMXGLFLDOGHFLVLRQXQGHU2KLR WRFRPSO\lZLWKWKHWHUPVRIWKHVHWWOHPHQWDJUHHPHQW,Q ODZ 7KLV FDVH DGGUHVVHV RQH RI WKH TXHVWLRQV 1HZSRZHU UHWXUQWKHVHWWOHPHQWUHOLHYHG0RUULVIURPOLDELOLW\XQGHUWKH QRWHG UHPDLQHG RSHQ IROORZLQJ 2PHJDV *URXS QDPHO\ PRUWJDJHDQGMXGJPHQWOLHQ,Q6HSWHPEHU sXGJH0RUULV@ VKDOO FRPSO\ ZLWK KHU VHWWOHPHQW IDVKLRQDQ\UHOLHIMXVWDQGDSSURSULDWHIRUWKHFLUFXPVWDQFHV DJUHHPHQWIRUWKZLWK8SRQ>KHU@IDLOXUHWRFRPSO\ZLWKWKH %ULQNHUKRII Y 6PLWK 1( 2KLR VHWWOHPHQW DJUHHPHQW >3RVV@ PD\ XQGHUWDNH DQ\ UHPHG\ 0F'RQDOG &R 6HF ,QF *UDGLVRQ 'LY Y $O]KHLPHUjV DYDLODEOHWRKLPDWODZRULQHTXLW\l0RUULVDSSHDOHGDQG 'LVHDVH 5HODWHG 'LVRUGHUV$VVjQ,QF1(G WKH2KLR&RXUWRI$SSHDOVDIILUPHGRQs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mZKHUHWKHUHLVVRPHJURXQGXSRQZKLFKHTXLW\ZLOO KROGRYHUSHULRGDQGPRYHGWKHFRXUWIRUDZULWRIUHVWLWXWLRQ JUDQWUHOLHIl+HQNOH1(GDW FLWLQJ&URVWRQ )ROORZLQJDQHYLGHQWLDU\KHDULQJWKHFRXUWDJUHHGWKDW0RUULV 1(GDW ,QWKHVHVLWXDWLRQV2KLRODZFUHDWHVDQ KDGIDLOHGWRSD\UHQWDQGLVVXHGWKHZULWRUGHULQJWKHVKHULII HTXLWDEOH GXW\ WR FRQYH\ SURSHUW\ *DEHO Y 5LFKOH\ WRVHL]HWKHEXLOGLQJ0RUULVDSSHDOHGERWKWKHILQGLQJWKDW 1(G 2KLR&W$SS 8QLRQ6DY /RDQ VKHIDLOHGWRFRPSO\ZLWKWKHVHWWOHPHQWDQGWKHLVVXDQFHRI $VVjQY0F'RQRXJK1(G 2KLR&W$SS WKHZULW FLWLQJ )HUJXVRQ 1(G DW %LORYRFNL Y 0DULPEHUJD1(G 2KLR&W$SS &0RUULVjV3HWLWLRQIRU%DQNUXSWF\XQGHU&KDSWHU $FFRUGLQJO\ HYHU\ ZURQJIXO DFTXLVLWLRQ RU KROGLQJ RI SURSHUW\ ZLOO QRW JLYH ULVH WR D FRQVWUXFWLYH WUXVW )RU 2Q6HSWHPEHU 0RUULVILOHGDYROXQWDU\SHWLWLRQIRU H[DPSOHEUHDFKRIFRQWUDFWRUIDLOXUHWRSD\DGHEWZLWKRXW EDQNUXSWF\XQGHU&KDSWHU+HUSHWLWLRQOLVWHGWKH PRUHFDQQRWJLYHULVHWRDFRQVWUXFWLYHWUXVW&URVWRQ DFUHSURSHUW\DVKDYLQJDPDUNHWYDOXHRIVXEMHFW 1(GDW @WREULQJDFDVHZLWKLQ WKHVFRSHRIWKHGRFWULQHl&URVWRQY&URVWRQ1(G 2Q )HEUXDU\ EHIRUH WKH EDQNUXSWF\ FRXUW 2KLR&W$SS TXRWLQJ$PHULFDQ8QLYY RYHUUXOHG3RVVjVREMHFWLRQVWR0RUULVjVDPHQGHG&KDSWHU )RUEHV$ 1+ SODQDVPRRW0RUULVILOHGDm&RPSODLQWWR$YRLG3UHIHUHQFH DQG$YRLG/LHQ,PSDLULQJ([HPSWLRQlZLWKWKHEDQNUXSWF\ 2KLRIROORZVWKHWUDGLWLRQDOUXOHRIWKHFRPPRQODZWKDW FRXUW&RXQW2QHRIWKHFRPSODLQWVRXJKWWRVHWDVLGHWKHH[ UHJDUGVFRQWUDFWVIRUWKHFRQYH\DQFHRIUHDOSURSHUW\DVIDOOLQJ SDUWHRUGHU3RVVKDGREWDLQHGLQVWDWHFRXUWRQWKHJURXQGWKDW ZLWKLQ WKH MXULVGLFWLRQ RI FRXUWV RI HTXLW\ EHFDXVH RI WKH LWVHQIRUFHPHQWZRXOGHQDEOH3RVVWRREWDLQPRUHIURPWKH LQKHUHQWLQDGHTXDF\RIDQ\OHJDOUHPHG\$\UHVY&RRN HVWDWHWKDQKHRWKHUZLVHZRXOGXQGHUWKHDPHQGHG&KDSWHU 1(G 2KLR m>$@QDFWLRQDWODZGRHVQRW SODQ,Q&RXQW7ZR0RUULVFODLPHGWKDWVKHZDVHQWLWOHGWR RUGLQDULO\DIIRUGDQDGHTXDWHUHPHG\IRUUHIXVDOWRFRQYH\ DKRPHVWHDGH[HPSWLRQXQGHUVWDWHDQGIHGHUDOODZ UHDOHVWDWHLQDFFRUGDQFHZLWKDYDOLGDJUHHPHQWl RYHUUXOHG DQGWKDW3RVVjVOLHQLPSDLUHGWKLVH[HPSWLRQWRWKHH[WHQWWKDW RQRWKHUJURXQGVE\6KHUPDQYsRKQVRQ1(G LWH[FHHGHGWKHYDOXHRIWKHSURSHUW\7KHFRPSODLQWSUD\HG 2KLR $OWKRXJKWKHDYDLODELOLW\RIDQHTXLWDEOH IRUUHFRQYH\DQFHRIWKHSURSHUW\WRWKHHVWDWHLQEDQNUXSWF\ UHPHG\ VXFK DV VSHFLILF SHUIRUPDQFH GHSHQGV XSRQ WKH DQG D GHWHUPLQDWLRQ WKDW 3RVVjV VHFXUHG VWDWXV EH VHW DW LQDGHTXDF\ RI D UHPHG\ DW ODZ mZKHUH ODQG LV WKH VXEMHFW 0RUULVDUULYHGDWWKLVILJXUHE\ VWDUWLQJZLWKWKH PDWWHURIWKHDJUHHPHQWWKHMXULVGLFWLRQRI HTXLW\WRJUDQW DSSUDLVHGYDOXHRIWKHSURSHUW\DQGVXEWUDFWLQJWKH VSHFLILFSHUIRUPDQFHGRHVQRWGHSHQGXSRQWKHH[LVWHQFHRI WD[OLHQQRZVHWDWWKHSRZHUFRPSDQ\OLHQ VSHFLDOIDFWVVKRZLQJWKHLQDGHTXDF\RIDOHJDOUHPHG\LQWKH DQG KHU KRPHVWHDG H[HPSWLRQ \LHOGLQJ D VXP RI SDUWLFXODUFDVHl*OHDVRQY*OHDVRQ1(G 2KLR &W $SS TXRWLQJ $0 s85 ' 6SHFLILF ,QUH0RUULV 1R 1R ,QUH0RUULV ZLWK WKH RWKHUV DQG WKH GHEWRUjV EDG FRQGXFW MXVWLILHG 6WDWH&RXUW3URFHHGLQJV VSHFLDOWUHDWPHQWLHWKHLPSRVLWLRQRIDFRQVWUXFWLYH WUXVW E\ WKH EDQNUXSWF\ FRXUW ,Q UH 2PHJDV VSRNH 2Q 0DUFK RQH GD\ DIWHU WKH EDQNUXSWF\ FRXUW GHILQLWLYHO\ WR TXDVK VXFK SRVWSHWLWLRQ VFUDPEOLQJ E\ UXOHGWKDW3RVVjVREMHFWLRQVWRWKH&KDSWHUSODQZHUHPRRW FUHGLWRUVSXVKLQJWRDSODFHDWWKHKHDGRIWKHOLQH WKH2KLR&RXUWRI$SSHDOVLVVXHGWZRGHFLVLRQVLQUHVSRQVH WR0RUULVjVDSSHDOVRIWKHH[SDUWHRUGHUDQGWKHMXGJPHQWLQ .LWFKHQY%R\G ,QUH1HZSRZHU )G WK WKHIRUFLEOHHQWU\DQGGHWDLQHUDFWLRQ:LWK UHVSHFW WRWKH &LU ,Q1HZSRZHU ZH KHOG WKDW FUHGLWRUV ZKR KDG IRUPHUWKHFRXUWRIDSSHDOVFRQFOXGHGWKDWWKHFRPPRQSOHDV LQLWLDWHGSURFHHGLQJVLQVWDWHFRXUWSUHSHWLWLRQPD\KDYHWKH FRXUWHUUHGE\LVVXLQJWKHRUGHULQDQH[SDUWHPDQQHUDQG DXWRPDWLF VWD\ OLIWHG WR SXUVXH WKHLU DFWLRQ DQG WKDW RXU FRQFOXGHGWKDW3RVVKDGQHYHUUHTXHVWHGFRQYH\DQFHRIWKH GHFLVLRQLQ2PHJDV*URXSmGRHVQRWEDUWKHHQIRUFHPHQWRI VSHFLILF SDUFHO DV WKH FRXUW RUGHUHG 7KH FRXUW RI DSSHDOV VXFKDMXGJPHQWE\WKHEDQNUXSWF\FRXUWl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jVFODLPWKDWDFRQVWUXFWLYHWUXVWLPSUHVVHGWKHSURSHUW\ KRZHYHUWKHFRXUWQRWHGWKDWWKLVGHFLVLRQVDLGQRWKLQJDERXW SULRU WR WKH GD\ RQ ZKLFK 0RUULV ILOHG KHU SHWLWLRQ IRU WKHSDUWLHVjWLWOHWRWKHSURSHUW\DQGRQO\DGGUHVVHGWKHULJKW EDQNUXSWF\GRHVQRWIDOOZLWKLQWKHFODVVRIW\SLFDOFDVHVWR WRSUHVHQWSRVVHVVLRQ ZKLFK 2PHJDV *URXS DSSOLHV DQG LQ DQ\ HYHQW 2PHJDV *URXS ZRXOG SUHVHQW QR EDU WR WKH EDQNUXSWF\ FRXUWjV 'HIDXOWsXGJPHQWLQWKH$GYHUVDU\3URFHHGLQJ HQIRUFHPHQW RI DFRQVWUXFWLYHWUXVWLQIDYRURI3RVV3RVV VHFXUHGDOLIWLQJRIWKHDXWRPDWLFVWD\WRDOORZsXGJHX@QOHVVDFRXUWKDV HTXLYDOHQWYDOXHZLWKWKHUHVXOWWKDW0RUULVEHFDPHLQVROYHQW DOUHDG\LPSUHVVHGDFRQVWUXFWLYHWUXVWXSRQFHUWDLQDVVHWV 6HFRQGEHFDXVHRIWKLVWUDQVIHU3RVVVRXJKWWKHLPSRVLWLRQ WKHFODLPDQWFDQQRWSURSHUO\UHSUHVHQWWRWKHEDQNUXSWF\FRXUW RIDFRQVWUXFWLYHWUXVWRQWKHVKDUHVRIVWRFN7KHUHIRUH WKDWKHZDVDWWKHWLPHRIWKHFRPPHQFHPHQWRIWKHFDVHD LQDGGLWLRQWRGLVPLVVDORI0RUULVjVFRPSODLQW3RVVVRXJKW EHQHILFLDU\RIDFRQVWUXFWLYHWUXVWKHOGE\WKHGHEWRUl,GDW DGHWHUPLQDWLRQWKDWKHKDGWKHILUVWDQGEHVWOLHQRQWKH IRRWQRWHRPLWWHG 6HHDOVRLGDW m:HGRQRW SURSHUW\ LQ D WRWDO DPRXQW RI VSHFLILF DGGUHVVKHUHSURSHUW\DOUHDG\LPSUHVVHGZLWKDFRQVWUXFWLYH SHUIRUPDQFHRIWKHVHWWOHPHQWDJUHHPHQWDQGFRQYH\DQFHRI WUXVWE\DFRXUWLQDVHSDUDWHSURFHHGLQJSUHSHWLWLRQl WKH SURSHUW\ SXUVXDQW WR WKH VWDWH FRXUWjV H[ SDUWH RUGHU DYRLGDQFH RI WKH WUDQVIHU RI WKH VKDUHV RI VWRFN WR 6LQFHGHFLGLQJ2PHJDV*URXSZHKDYHFODULILHGVHYHUDO 0RUULVj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sXGJH0RUULV@KD>G@QHYHUFRPSOLHGZLWKWKHVHWWOHPHQW LVVXH8QVHFXUHG&UHGLWRUVj&RPPRI+LJKODQG6XSHUVWRUHV DJUHHPHQWlsXGJH)@URP WKH LQLWLDO MXGJPHQW XS WR WKH GDWH RI WKH 8QLWHG6WDWHV86 'HPF]\NY0XWXDO VHWWOHPHQWDJUHHPHQW>3RVVjV@ULJKWVZLWKUHVSHFWWRWKH /LIH,QV&RRI1< ,QUH*UDKDP6TXDUH,QF )G VXEMHFW UHDO SURSHUW\ ZHUH WKH VDPH DV WKRVH RI DQ\ WK &LU FLWDWLRQV RPLWWHG 3RVV IXUWKHU FUHGLWRUKROGLQJMXGJPHQWOLHQVZKLFKPLJKWEHVDWLVILHG REMHFWVWRWKHMXGJPHQWRIWKHEDQNUXSWF\FRXUW6SHFLILFDOO\ WKURXJKH[HFXWLRQDJDLQVWWKHSURSHUW\)ROORZLQJWKH KH PDLQWDLQV WKDW WKH EDQNUXSWF\ FRXUW HUUHG E\ IDLOLQJ WR VHWWOHPHQWDJUHHPHQW>3RVV@KDGDQHQIRUFHDEOHFRQWUDFW UHFRJQL]H WKDW SULRU WR 0RUULVjV ILOLQJ RI KHU SHWLWLRQ LQ IRU FRQYH\DQFH RI WKH SURSHUW\ WR KLP E\ >0RUULV@ EDQNUXSWF\DFRQVWUXFWLYHWUXVWKDGDWWDFKHGWRWKHSURSHUW\ 8QIRUWXQDWHO\ >3RVV@ KDV QHYHU FRPSOHWHG HLWKHU DQ IRU KLV EHQHILW XQGHU 2KLR ODZ 3RVV UHOLHV RQ 86& H[HFXWLRQRQKLVMXGJPHQWOLHQVDJDLQVWWKHSURSHUW\RU G ZKLFKSURYLGHV D FRQYH\DQFH RI WKH SURSHUW\ LQ DFFRUGDQFH ZLWK WKH VHWWOHPHQW DJUHHPHQW SULRU WR >0RUULVjV@ ILOLQJ RI WKH 3URSHUW\ LQ ZKLFK WKH GHEWRU KROGV DV RI WKH EDQNUXSWF\SURFHHGLQJV FRPPHQFHPHQWRIWKHFDVHRQO\OHJDOWLWOHDQGQRWDQ HTXLWDEOHLQWHUHVWEHFRPHVSURSHUW\RIWKHHVWDWH )ROORZLQJWKHDSSHOODWHFRXUWjVUHYHUVDORIWKHH[SDUWHRUGHU RQO\ WR WKH H[WHQW RI WKH GHEWRUjV OHJDO WLWOH WR VXFK sXGJH0RUULV@DQGWKDWVKHKDGOHJDORZQHUVKLSRIWKH :LWKUHJDUGWRDFRQVWUXFWLYHWUXVWZHKDYHEHHQFOHDUWKDW SURSHUW\ DW WKH WLPH RI WKH ILOLQJ RI KHU SHWLWLRQl IRU WKLVVHFWLRQGRHVQRWDXWKRUL]HEDQNUXSWF\FRXUWVWRUHFRJQL]H EDQNUXSWF\)LQDOO\sXGJH0RUULV@WR>KLPVHOI@+RZHYHUXQWLOVXFKDQRUGHULV :LOVRQ ,QUH2PHJDV*URXS,QF )G WK YDOLGO\UHQGHUHGOHJDOWLWOHDQGRZQHUVKLSRIWKHUHDOHVWDWH &LU ZHKHOGWKDWmDFUHGLWRUjVFODLPRIHQWLWOHPHQWWR UHPDLQVLQ>0RUULV@l D FRQVWUXFWLYH WUXVW LV QRW DQ µHTXLWDEOH LQWHUHVWj LQ WKH GHEWRUjVHVWDWHH[LVWLQJSUHSHWLWLRQH[FOXGHGIURPWKHHVWDWH (7KH%DQNUXSWF\&RXUWjV'LVSRVLWLRQRIWKH$GYHUVDU\ XQGHU G l,QWKDWIDLUO\W\SLFDOEDQNUXSWF\SURFHHGLQJ 3URFHHGLQJ LQZKLFKWKHFUHGLWRUKDGWUDQVIHUUHGSURSHUW\WRWKHGHEWRULQ WKHRUGLQDU\FRXUVHRIEXVLQHVVDOOHJHGO\GXHWRWKHIUDXGRI ,Q 6HSWHPEHU RI 0RUULV PRYHG IRU VXPPDU\ WKHGHEWRUWKHFUHGLWRUSUHVVHGLWVFDVHIRULPSRVLWLRQRID MXGJPHQW$IWHUVHHNLQJDQH[WHQVLRQRIWKHWLPHWRUHSO\ FRQVWUXFWLYH WUXVW LQ EDQNUXSWF\ FRXUW ZKHQ QR VWDWH FRXUW 3RVVIDLOHGWRGRVR7KHUHIRUHWKHEDQNUXSWF\FRXUWGHFLGHG SURFHHGLQJVKDGRFFXUUHGSULRUWRWKHILOLQJRIWKHEDQNUXSWF\ 0RUULVjV PRWLRQ RQ WKH EDVLV RI WKH UHFRUG EHIRUH LW ,Q D PHPRUDQGXPRSLQLRQWKHEDQNUXSWF\FRXUWJUDQWHGMXGJPHQW ,QUH0RUULV 1R 1R ,QUH0RUULV LQ IDYRU RI 0RUULV LQ DOO UHVSHFWV 6SHFLILFDOO\ WKH FRXUW EDQF 6XPPDU\ MXGJPHQW LV SURSHU LI mWKH SOHDGLQJV FRQFOXGHG WKDW WKH DFWLRQ RI WKH 2KLR &RXUW RI $SSHDOV GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQV RQ UHVROYHG0RUULVjVUHTXHVWIRUUHOLHIIURPWKHFRQYH\DQFHRI ILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZWKDWWKHUHLVQR WKHSURSHUW\SXUVXDQWWRWKHH[SDUWHRUGHU%HFDXVHRIWKH JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDWWKHPRYLQJSDUW\ VWDWH DSSHOODWH FRXUW GHFLVLRQ DQG WKH VXEVHTXHQW LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl)(' 5 &,9 3 GHWHUPLQDWLRQE\sXGJHQRQPRYDQW@l$QGHUVRQY/LEHUW\ WKH UHDO HVWDWH DW JUDQWHG 0RUULV WKH KRPHVWHDG /REE\,QF86 (QWU\RIVXPPDU\ H[HPSWLRQDQGGHWHUPLQHGWKDWWKHWD[DQGSRZHUFRPSDQ\ MXGJPHQWLVDSSURSULDWHmDJDLQVWDSDUW\ZKRIDLOVWRPDNHD OLHQVKDGSULRULW\RYHU3RVVjVMXGJPHQWOLHQ$IWHUDOORZDQFH VKRZLQJVXIILFLHQWWRHVWDEOLVKWKHH[LVWHQFHRIDQHOHPHQW IRUWKHVHSULRUFODLPVWKHFRXUWIL[HG3RVVjVVHFXUHGLQWHUHVW HVVHQWLDOWRWKDWSDUW\jVFDVHDQGRQZKLFKWKDWSDUW\ZLOOEHDU LQWKHHVWDWHDW DQGGHWHUPLQHGWKHUHPDLQGHURI WKHEXUGHQRISURRIDWWULDOl&HORWH[&RUSY&DWUHWW KLVFODLPVWREHXQVHFXUHGWRWKHH[WHQWDOORZDEOHE\ODZ,Q 86 FRQFOXVLRQWKHFRXUWJUDQWHG0RUULVMXGJPHQWRQERWKFRXQWV LQ KHU FRPSODLQW DQG RQ 3RVVjV FRXQWHUFODLPV )LQDOO\ 3RVVREMHFWVWRWKHEDQNUXSWF\FRXUWjVFLWDWLRQRI6WUHHWY ILQGLQJ WKDW 3RVV QHYHU WLPHO\ VHUYHG WKH WKLUGSDUW\ s&%UDGIRUG &R)G WK&LU IRUWKH GHIHQGDQWVWKHFRXUWGLVPLVVHGWKHWKLUGSDUW\FRPSODLQW SURSRVLWLRQWKDWXQGHUWKHmQHZHUDlRIVXPPDU\MXGJPHQWV XVKHUHG LQ E\ $QGHUVRQ &HORWH[ DQG 0DWVXVKLWD WKH WULDO )7KH'LVWULFW&RXUWjV2SLQLRQ FRXUW QR ORQJHU KDV WKH GXW\ WR VHDUFK WKH HQWLUH UHFRUG WR HVWDEOLVKWKDWLWLVEHUHIWRIDJHQXLQHLVVXHRIPDWHULDOIDFW 2Q DSSHDO WR WKH 1RUWKHUQ 'LVWULFW RI 2KLR WKH SDUWLHV ,GDW FLWLQJ)ULWR/D\,QFY:LOORXJKE\)G FRQVHQWHGWRWKHH[HUFLVHRIMXULVGLFWLRQE\DPDJLVWUDWH2Q '& &LU 7KH EDQNUXSWF\ FRXUW 2FWREHU WKHPDJLVWUDWHDIILUPHGWKHGHFLVLRQRIWKH LQWHUSUHWHG6WUHHWWRPHDQWKDWmWKHQRQPRYLQJSDUW\KDVDQ EDQNUXSWF\FRXUWLQDPHPRUDQGXPRSLQLRQDQGRUGHU2Q DIILUPDWLYH GXW\ WR GLUHFW WKH FRXUWjV DWWHQWLRQ WR WKRVH DSSHDO0RUULVVRXJKWWREDU3RVVIURPUDLVLQJVXEVWDQWLYH VSHFLILFSRUWLRQVRIWKHUHFRUGXSRQZKLFKLWVHHNVWRUHO\WR LVVXHV VLQFH KH IDLOHG WR RSSRVH KHU PRWLRQ IRU VXPPDU\ FUHDWHDJHQXLQHLVVXHRIPDWHULDOIDFWl7KLVUHDGLQJDFFRUGV MXGJPHQWLQWKHEDQNUXSWF\FRXUW5HYLHZLQJWKHFDVHODZRI ZLWKWKHEXUGHQ&HORWH[SODFHVRQWKHQRQPRYLQJSDUW\,Q WKLV FLUFXLW WKH PDJLVWUDWH FRQFOXGHG WKDW 3RVV FRXOG UDLVH DUWLFXODWLQJ WKH VWDQGDUG XQGHU 5XOH F WKH EDQNUXSWF\ LVVXHV IRU WKH ILUVW WLPH RQ DSSHDO WR WKH H[WHQW WKDW WKH\ FRXUWSURSHUO\VWDWHGDQGDSSOLHGWKHJRYHUQLQJSULQFLSOHVRI WXUQHGRQLVVXHVRIODZDQGUHTXLUHGQRIDFWXDOGHYHORSPHQW $QGHUVRQ &HORWH[ DQG 0DWVXVKLWD DV ZHOO DV WKLV FRXUWj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jV FRQWHQWLRQ WKDW WKH EDQNUXSWF\ FRXUW UHVXOWLQWKLVFDVH)RVWHU)GDW FLWDWLRQVRPLWWHG HUURQHRXVO\ HVWDEOLVKHG WKH YDOXH RI WKH SURSHUW\ WKH )LQDOO\ZHVKRXOGDGGUHVVDQLVVXHSUHVHQWHGZLWKVXIILFLHQW PDJLVWUDWHEDUUHGWKHLVVXHDVUHTXLULQJIDFWXDOGHYHORSPHQW FODULW\ DQG UHTXLULQJ QR IDFWXDO GHYHORSPHQW LI GRLQJ VR QRWDSSURSULDWHO\DGGUHVVHGIRUWKHILUVWWLPHRQDSSHDO ZRXOGSURPRWHWKHILQDOLW\RIOLWLJDWLRQLQWKLVFDVH3LQQH\ 'RFN)GDW FLWLQJ$OH[DQGHU)GDW ,,,VVXHV5DLVHGIRUWKH)LUVW7LPHRQ$SSHDO 6HHDOVR8QLWHG6WDWHVY%XWOHU)G WK&LU 5HYLHZLQJ3RVVjVDUJXPHQWVZHFRQFOXGH :KHQZHUHYLHZDSSHDOVIURPWKHGHFLVLRQVRIDGLVWULFW WKDWKHKDVSUHVHQWHGOHJDOLVVXHVUHTXLULQJQRIXUWKHUIDFWXDO FRXUWLQDFDVHRULJLQDWLQJLQEDQNUXSWF\FRXUWRXUVWDQGDUG GHYHORSPHQWZLWKVXIILFLHQWFODULW\WRIDOOZLWKLQWKH3LQQH\ RIUHYLHZLVVRPHZKDWGLIIHUHQWWKDQQRUPDO:HGLUHFWO\ 'RFNH[FHSWLRQ%HFDXVHRXUFRQVLGHUDWLRQRIWKHVHLVVXHV UHYLHZWKHGHFLVLRQRIWKHEDQNUXSWF\FRXUWUDWKHUWKDQWKH ZLOODLGLQWKHUHVROXWLRQRI0RUULVjVEDQNUXSWF\SHWLWLRQDQG GLVWULFWFRXUWjVUHYLHZRIWKHEDQNUXSWF\FRXUWjVGHFLVLRQ,Q SURPRWHILQDOLW\LQWKH\HDUVRIUDQFRURXVOLWLJDWLRQEHWZHHQ UH0s:DWHUPDQ $VVRFV,QF)G WK&LU WKH SDUWLHV ZH IROORZ WKH GLVWULFW FRXUW LQ SURFHHGLQJ WR FLWDWLRQRPLWWHG 6HHDOVR,QUH%URZQ)G DGGUHVV 3RVVjV DUJXPHQWV WR WKH H[WHQW WKH\ UHTXLUH QR WK&LU m,QDSSHDOVIURPWKHGHFLVLRQRID DGGLWLRQDOIDFWXDOGHYHORSPHQW:HGRVRPLQGIXOWKDWZH GLVWULFWFRXUWRQDSSHDOIURPWKHEDQNUXSWF\FRXUWWKHFRXUW ULVN H[FXVLQJ WKH IDLOXUH RI 3RVVjV DWWRUQH\ WR UHVSRQG WR RI DSSHDOV LQGHSHQGHQWO\ UHYLHZV WKH EDQNUXSWF\ FRXUWjV 0RUULVjVPRWLRQIRUVXPPDU\MXGJPHQWDIWHUUHTXHVWLQJDQ GHFLVLRQDSSO\LQJWKHFOHDUO\HUURQHRXVVWDQGDUGWRILQGLQJV H[WHQVLRQ WR GR VR DQG VHHNLQJ WR VHW DVLGH WKH GHIDXOW RI IDFW DQG GH QRYR UHYLHZ WR FRQFOXVLRQV RI ODZl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jV6XPPDU\sXGJPHQW RIVXPPDU\MXGJPHQWSUHVHQWVDSXUHTXHVWLRQRIODZ WKH 6WDQGDUG GLVWULFW FRXUW UHYLHZV WKH EDQNUXSWF\ FRXUWjV JUDQW RI VXPPDU\MXGJPHQWGHQRYRDVGRZHLQWXUQ,GDW 3RVVFKDOOHQJHVWKHEDQNUXSWF\FRXUWjVJUDQWRIVXPPDU\ MXGJPHQWE\DUJXLQJWKDWWKHFRXUWXVHGDQLPSURSHUVWDQGDUG %HIRUHZHSURFHHGWRUHYLHZWKHEDQNUXSWF\FRXUWjVJUDQW WKDW GLG QRW UHTXLUH LW WR UHYLHZ WKH HQWLUH UHFRUG 8QGHU RI VXPPDU\ MXGJPHQW KRZHYHU ZH PXVW FRQIURQW WKH )HGHUDO5XOHRI%DQNUXSWF\3URFHGXUH5XOH F RIWKH WKUHVKROGLVVXHRIWKHHIIHFWRI3RVVj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j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m'HYLDWLRQVDUHSHUPLWWHGLQH[FHSWLRQDOFDVHVRUSDUWLFXODU JHQHUDO UXOH ,Q 6LQJOHWRQ WZR SK\VLFLDQV FKDOOHQJHG WKH FLUFXPVWDQFHV RU ZKHQ WKH UXOH ZRXOG SURGXFH D SODLQ FRQVWLWXWLRQDOLW\ RI D 0LVVRXUL ODZ GHQ\LQJ 0HGLFDLG PLVFDUULDJHRIMXVWLFHl,G TXRWLQJ+RUPHO86DW FRYHUDJHIRUDERUWLRQVWKDWZHUHQRWPHGLFDOO\QHFHVVDU\,Q LQWHUQDOFLWDWLRQVDQGTXRWDWLRQVRPLWWHG $GGLWLRQDOO\ UHVSRQVH WR D SUHDQVZHU PRWLRQ WR GLVPLVV IRU ODFN RI ZHGHWHUPLQHGWKDWZHVKRXOGDGGUHVVDQLVVXHIRUWKHILUVW VWDQGLQJWKHSK\VLFLDQVDWWDFKHGDIILGDYLWVDYHUULQJWKDWWKH\ WLPH RQ DSSHDO mWR WKH H[WHQW WKH LVVXH LV SUHVHQWHG ZLWK SHUIRUPHG DERUWLRQV DQG KDG EHHQ GHQLHG 0HGLFDLG VXIILFLHQW FODULW\ DQG FRPSOHWHQHVV DQG LWV UHVROXWLRQ ZLOO UHLPEXUVHPHQWSXUVXDQWWRWKH0LVVRXULODZ)LQGLQJWKDWWKH PDWHULDOO\DGYDQFHWKHSURJUHVVRIOLWLJDWLRQl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mD &LU ,QDGGLWLRQWRWKHSURPRWLRQRIILQDOLW\ZHPD\ IHGHUDODSSHOODWHFRXUWGRHVQRWFRQVLGHUDQLVVXHQRWSDVVHG FRQVLGHUDQLVVXHQRWSUHVHQWHGWRDGLVWULFWFRXUWZKHQGRLQJ XSRQEHORZl,GDW$VDUDWLRQDOHWKH&RXUWH[SODLQHG VRVHUYHVmDQRYHUDUFKLQJSXUSRVHEH\RQGWKDWRIDUULYLQJDW WKDWWKHUXOHLVmHVVHQWLDOLQRUGHUWKDWSDUWLHVPD\KDYHWKH WKH FRUUHFW UHVXOW LQ DQ LQGLYLGXDO FDVHl VXFK DV ZKHQ WKH RSSRUWXQLW\WRRIIHUDOOWKHHYLGHQFHWKH\EHOLHYHUHOHYDQWWR VWDWHRIWKHODZLVXQFHUWDLQ,GDW FLWDWLRQVRPLWWHG WKHLVVXHVDQGLQRUGHUWKDWOLWLJDQWVPD\QRWEHVXUSULVHGRQ :HKDYHW\SLFDOO\DSSOLHGWKHm3LQQH\'RFNH[FHSWLRQlZKHQ DSSHDOE\ILQDOGHFLVLRQWKHUHRILVVXHVXSRQZKLFKWKH\KDYH WKH LVVXH UDLVHG IRU WKH ILUVW WLPH RQ DSSHDO LQYROYHV D KDGQRRSSRUWXQLW\WRLQWURGXFHHYLGHQFHl,G FLWLQJ+RUPHO TXHVWLRQ RI ODZ WKDW UHTXLUHV QR DGGLWLRQDO IDFWXDO Y+HOYHULQJ86 DOWHUDWLRQVRPLWWHG GHYHORSPHQW(J6HPDDQY$OOLHG6XSHUPDUNHWV,QF ,Q 1RWLQJWKDWLQFHUWDLQFLUFXPVWDQFHVVXFKDVZKHUHSURSHU UH$OOLHG6XSHUPDUNHWV,QF )G WK&LU UHVROXWLRQ LV EH\RQG DQ\ GRXEW RU mZKHUH LQMXVWLFH PLJKW RWKHUZLVHUHVXOWl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mSDUWLFXODU FLUFXPVWDQFHl