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 81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH 1R Y ! '$55 @ PXVW EH VXEPLWWHG WR D MXU\ DQG SURYHG EH\RQG D UHDVRQDEOH GRXEWl ,Q RUGHU WR SUHVHUYH WKDW JURXQG IRU WKH IXWXUH LW KDV EHHQ LQFOXGHG LQ KLV EULHI RQ DSSHDO 1R 8QLWHG6WDWHVY&OHDYHV )RU WKH UHDVRQV VHW RXW EHORZ ZH DJUHH ZLWK WKH JRYHUQPHQWjVSRVLWLRQ )$&78$/$1'352&('85$/+,6725< )URP WKURXJK 'DUU\O &OHDYHV KLV VHYHQ FR GHIHQGDQWVDQGVHYHUDORWKHUXQLQGLFWHGFRFRQVSLUDWRUVUDQ D GUXJWUDIILFNLQJ RSHUDWLRQ EHWZHHQ 'DOODV 7H[DV DQG 0HPSKLV7HQQHVVHH&OHDYHVDUHVLGHQWRI0HPSKLVZDV LQWURGXFHGWR'DOODVGUXJVXSSOLHUV'DPLHQ*LOODQG0LJXHO 6DUGX\&UX]WKURXJKDIULHQG)UHGsHWHUsHWHUYRXFKHGIRU WKHUHOLDELOLW\RI&OHDYHVWRWKH'DOODVGUXJFRQWDFWVDQGZDV LQWHUPLWWHQWO\LQYROYHGLQWKHDFWXDOSXUFKDVHVRIERWKFRFDLQH DQGPDULMXDQD 6KRUWO\ DIWHU EHLQJ LQWURGXFHG WR 6DUGX\&UX] &OHDYHV EHJDQEX\LQJFRFDLQHIURPKLPRQDUHJXODUEDVLV&OHDYHV PDGHDWOHDVWILYHDQGSRVVLEO\DVPDQ\DVWHQWULSVWR'DOODV LQWKHFRPSDQ\RIDQRWKHUIULHQG5REHUW%ODFNEXUQ'XULQJ HDFKRIWKRVHWULSV&OHDYHVSXUFKDVHGRQHRUWZRNLORJUDPV RIFRFDLQH$IWHUILYHVXFKWUDQVDFWLRQV&OHDYHVDOVREHJDQ VHQGLQJDFRXULHU5DQGROSKm&RZER\l/LJJHQVZKRZRXOG FDUU\ NLORJUDPV RI FRFDLQH IRU &OHDYHV RQ D EXV WUDYHOLQJ IURP 'DOODV WR 0HPSKLV +DYLQJ HVWDEOLVKHG DQ RQJRLQJ UHODWLRQVKLSZLWK6DUGX\&UX]&OHDYHVYLVLWHGKLPIRUWKH SXUSRVHRIEX\LQJFRFDLQHLQWKHFRPSDQ\RIVHYHUDORIWKH RWKHUFRGHIHQGDQWVLQFOXGLQJsHWHU$GGLWLRQDOO\&OHDYHV DVNHG 6DUGX\&UX] WR FUHDWH D VHFUHW FRPSDUWPHQW LQ KLV DXWRPRELOHIRUWKHSXUSRVHRIWUDQVSRUWLQJFRFDLQHEHWZHHQ 'DOODVDQG0HPSKLV6DUGX\&UX]DJUHHGWRGRVREXLOGLQJ DFRPSDUWPHQWLQWKHIORRURIWKHGHIHQGDQWjVFDUWKDWZDV H[DFWO\WKHVL]HRIDNLOREORFNRIFRFDLQH3ROLFHRIILFHUV ODWHUGLVFRYHUHGLWLQDVHDUFKRI&OHDYHVjVDXWRPRELOH 'XULQJRQHRIWKHWULSVEHWZHHQ'DOODVDQG0HPSKLVsHWHU DQG$QWKRQ\7\URQH+DUULVZHUHVWRSSHGRQ,QWHUVWDWHE\ D7H[DVSROLFHRIILFHUZKRIRXQGDVPDOODPRXQWRIFRFDLQH LQWKHWUXQNRIWKHFDUZKLFKKDGEHHQOHDVHGWKHGD\EHIRUH LQ0HPSKLVE\&OHDYHV 8QLWHG6WDWHVY&OHDYHV 1R 1R 8QLWHG6WDWHVY&OHDYHV $IWHU D VHULHV RI VWLQJ RSHUDWLRQV WKH GHIHQGDQWV ZHUH DXWRPRELOH RQ sDQXDU\ DQG UHFRYHUHG D VPDOO MRLQWO\ LQGLFWHG FKDUJHG ZLWK D FRQVSLUDF\ WR mXQODZIXOO\ DPRXQWRIFRFDLQHIURPDMDFNHWLQWKHFDU7KHDXWRPRELOH NQRZLQJO\ DQG LQWHQWLRQDOO\ SRVVHVV ZLWK WKH LQWHQW WR UHQWHG E\ &OHDYHV ZDV RFFXSLHG E\ WZR RI WKH RWKHU FR GLVWULEXWH DQG FDXVH WKH SRVVHVVLRQ ZLWK WKH LQWHQW WR FRQVSLUDWRUVsHWHUDQG+DUULV$GGLWLRQDOO\WKHIDFWWKDWD GLVWULEXWHDQDPRXQWLQH[FHVVRINLORJUDPVRIFRFDLQHlDQG SROLFHVHDUFKUHYHDOHGWKDW&OHDYHVjVFDUZDVRXWILWWHGZLWKD mWRXQODZIXOO\NQRZLQJO\DQGLQWHQWLRQDOO\SRVVHVVZLWKWKH KLGGHQ FRPSDUWPHQW GHVLJQHG IRU FRFDLQH WUDQVSRUW FRXOG LQWHQW WR GLVWULEXWH DQG FDXVH WKH SRVVHVVLRQ ZLWK LQWHQW WR KDYH OHG D UHDVRQDEOH MXU\ WR FRQFOXGH WKDW &OHDYHV ZDV GLVWULEXWH DQ DPRXQW LQ H[FHVV RI NLORJUDPV RI LQYROYHG LQ D GUXJ FRQVSLUDF\ ZLWKRXW DQ\ FRQFOXVLYH PDULMXDQDl 7KH LQGLFWPHQW IXUWKHU DOOHJHG WKDW WKH GHWHUPLQDWLRQRIWKHDPRXQWRIFRFDLQHLQYROYHG7KHUHLVQR FRQVSLUDF\mFRQVLVWHGRIDQDJUHHPHQWEHWZHHQDQGDPRQJ LQGLFDWLRQRQWKHUHFRUGWKDWDQ\ODUJHDPRXQWRIFRFDLQHZDV WKHYDULRXVFRFRQVSLUDWRUVDOORZLQJIRUHDFKPHPEHUWKHUHRI HYHUUHFRYHUHGE\WKHDXWKRULWLHVRUHQWHUHGLQWRHYLGHQFHDW WR SHUIRUP FHUWDLQ VSHFLILF IXQFWLRQV GHVLJQHG ZKHQ HDFK WULDO FRQVSLUDWRUSHUIRUPHGKLVRUKHUSDUWWRREWDLQFRFDLQHDQGRU PDULMXDQD>WR@GLVWULEXWHFRFDLQHDQGRUPDULMXDQDZLWKLQWKH &7KH'HIHQGDQWjV3ULRU&RQYLFWLRQV :HVWHUQ 'LVWULFW RI 7HQQHVVHH REWDLQ WKH SURFHHGV IRU WKH VDOH RI VDLG FRFDLQH DQGRU PDULMXDQD DQG GHOLYHU VDLG )LQDOO\WKHGHIHQGDQWDUJXHVWKDWWKHJRYHUQPHQWVKRXOG SURFHHGV WR WKH XOWLPDWH VXSSOLHUV RI WKH FRFDLQH DQGRU KDYHEHHQUHTXLUHGWRVXEPLWHYLGHQFHRIKLVSULRUFRQYLFWLRQV PDULMXDQDl WR WKH MXU\ LQ RUGHU WR HVWDEOLVK UHFLGLYLVP EH\RQG D UHDVRQDEOHGRXEW+RZHYHUWKHODZLVVWLOOZHOOVHWWOHGWKDW %HFDXVHRIWKHZRUGLQJRIWKHLQGLFWPHQWWKHGLVWULFWFRXUW WKH H[LVWHQFH RI SULRU FRQYLFWLRQV DQG WKHLU HIIHFW RQ D DQGWKHSURVHFXWRUUHFRJQL]HGWKDWDVSHFLDOYHUGLFWPLJKWEH GHIHQGDQWjV VHQWHQFH DUH PDWWHUV WR EH GHWHUPLQHG E\ WKH LQGLFDWHGRQHWKDWZRXOGUHTXLUHWKHMXU\WRGHWHUPLQHZKDW GLVWULFWFRXUW6HH8QLWHG6WDWHVY*DWHZRRG)G NLQGRIFRQWUROOHGVXEVWDQFHPDULMXDQDRUFRFDLQHRUERWK WK&LUHQEDQF$SSUHQGLH[SOLFLWO\H[HPSWVSULRU ZDVLQYROYHGLQWKHFRQVSLUDF\8OWLPDWHO\WKHFRXUWUHDVRQHG FRQYLFWLRQVIURPWKRVHIDFWRUVWKDWPXVWEHSURYHQWRWKHMXU\ WKDW EHFDXVH RI WKH UHFLGLYLVP HQKDQFHPHQW WKDW ZRXOG EH EH\RQGDUHDVRQDEOHGRXEW DSSOLHGWR&OHDYHVjVVHQWHQFHLQWKHHYHQWRIKLVFRQYLFWLRQ WKHPD[LPXPVHQWHQFHZRXOGEHWKHVDPHUHJDUGOHVVRIWKH &21&/86,21 W\SH RI GUXJ LQYROYHG 7KH FRXUW WKHUHIRUH GHFOLQHG WR LQVWUXFWWKHMXU\WRUHWXUQDVSHFLDOYHUGLFWDQGWKHGHIHQGDQW )RUWKHUHDVRQVVHWRXWDERYHZH$)),50WKHGHIHQGDQWj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j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j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µIDLUQHVVLQWHJULW\DQGSXEOLF NLORJUDPV%DVHGRQKLVFRQYLFWLRQDORQJZLWKWKUHHSULRU UHSXWDWLRQ RI MXGLFLDO SURFHHGLQJVj ZRXOG EH LI IHORQ\ GUXJ FRQYLFWLRQV KH UHFHLYHG D VHQWHQFH RI OLIH UHVSRQGHQWV GHVSLWH WKH RYHUZKHOPLQJ DQG LPSULVRQPHQW XQGHU 86& E$ +H QRZ XQFRQWURYHUWHGHYLGHQFHWKDWWKH\ZHUHLQYROYHGLQDYDVW DSSHDOVKLVVHQWHQFH GUXJFRQVSLUDF\ZHUHWRUHFHLYHDVHQWHQFHSUHVFULEHG IRU WKRVH FRPPLWWLQJ OHVV VXEVWDQWLDO GUXJ RIIHQVHV ',6&866,21 EHFDXVHRIDQHUURUWKDWZDVQHYHUREMHFWHGWRDWWULDO $7KH'UXJ7\SH 6&W DW +HQFH ZH ILQG QR UHYHUVLEOH HUURU LQ FRQQHFWLRQ ZLWK WKH GLVWULFW FRXUWjV GHFLVLRQ WR IRUHJR D &OHDYHVDUJXHVRQDSSHDOWKDWLQDVVHVVLQJKLVVHQWHQFHWKH VSHFLDOYHUGLFWDVWRWKHGUXJW\SH GLVWULFWFRXUWLPSURSHUO\GHWHUPLQHGWKHW\SHRIGUXJLQYROYHG LQWKHFRQVSLUDF\LQYLRODWLRQRI8QLWHG6WDWHVY'DOH %7KH'UXJ$PRXQW )G WK &LU %HFDXVH &OHDYHV GLG QRW REMHFWWRWKHMXU\LQVWUXFWLRQWKDWSURGXFHGDJHQHUDOYHUGLFW ,Q FRQWUDVW ZLWK WKH GLVWULFW FRXUWj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jV EXUGHQ WR UHTXHVW D VSHFLDO WULSVPDGHZLWK&OHDYHVRUWKHDPRXQWRIGUXJVSXUFKDVHGRQ YHUGLFW 8QLWHG 6WDWHV Y *DUFLD )G WK &LU HDFKWULS m:KHQ WKH LQIRUPDWLRQ VRXJKW LQ WKH VSHFLDO YHUGLFW LV UHOHYDQW WR WKH VHQWHQFH WR EH LPSRVHG LW LV WKH GXW\ RI WKH JRYHUQPHQW WR VHHN D VSHFLDO )XUWKHUWKHMXU\FRXOGHDVLO\KDYHGLVPLVVHG6DUGX\&UX]jV YHUGLFW DQG ZH ZLOO UHYLHZ WKH VHQWHQFH GH QRYRl +RZHYHU LQ WKLV FDVH WHVWLPRQ\DQGVWLOOUHWXUQHGDJXLOW\YHUGLFWEDVHGXSRQWKH WKH GHIHQGDQW ZDV DVNHG LI KH ZDV VDWLVILHG ZLWK WKH GLVWULFW FRXUWjV WHVWLPRQ\RIRWKHUZLWQHVVHVLQFOXGLQJ7H[DV3ROLFH2IILFHU LQFOLQDWLRQ WR QRW UHTXHVW D VSHFLILF YHUGLFW DQG KH UHSOLHG WKDW KH ZDV +HQFH WKH GHIHQGDQW GLG QRW SURSHUO\ SUHVHUYH WKH 'DOH FODLP IRU .HQW%DVLQJHUZKRWHVWLILHGWKDWKHVWRSSHGD%XLFN/D6DEUH DSSHOODWH UHYLHZ )G 8QLWHG6WDWHVY&OHDYHV 1R 1R 8QLWHG6WDWHVY&OHDYHV UHYLHZLVQDUURZLQVFRSHLQYROYLQJDILQGLQJRIHUURU 8QGHU$SSUHQGLIDLOXUHWRLQVWUXFWWKHMXU\WRGHWHUPLQH WKDWLVSODLQDQGWKDWDIIHFWVWKHGHIHQGDQWjVVXEVWDQWLDO ERWKWKHW\SHRIGUXJDQGWKHGUXJTXDQWLW\LQYROYHGLQWKH ULJKWV6HHsRKQVRQY8QLWHG6WDWHV86 FRQVSLUDF\DPRXQWHGWRSODLQHUURU6HHsRKQVRQY8QLWHG (YHQLIDOOWKUHHRIWKHVHIDFWRUVDUHSUHVHQWZHZLOOUHYHUVH 6WDWHV86m:KHUHWKHODZDWWKHWLPH RQWKHEDVLVRIVXFKHUURURQO\LILWmVHULRXVO\DIIHFW>V@WKH RIWULDOZDVVHWWOHGDQGFOHDUO\FRQWUDU\WRWKHODZDWWKHWLPH IDLUQHVV LQWHJULW\ RU SXEOLF UHSXWDWLRQ RI MXGLFLDO RIDSSHDOLWLVHQRXJKWKDWDQHUURUEHµSODLQjDWWKHWLPHRI SURFHHGLQJVl2ODQR86DWVHHDOVR8QLWHG6WDWHV DSSHOODWH FRQVLGHUDWLRQl :KHWKHU WKH GHFLVLRQ mDIIHFWHG Y&RWWRQ86BB6&W VXEVWDQWLDOULJKWVlLVOHVVFOHDUEXWZHQHHGQRWUHVROYHWKLV LVVXHEHFDXVHZHILQGWKDWWKHHUURUGLGQRWmVHULRXVO\DIIHFW 7LWOH86&SURYLGHVWKDWWKHGHIHQGDQWUHFHLYH WKH IDLUQHVV LQWHJULW\ RU SXEOLF UHSXWDWLRQ RI MXGLFLDO mWKHVDPHSHQDOWLHVDVWKRVHSUHVFULEHGIRUWKHRIIHQVHWKH SURFHHGLQJVl6HH8QLWHG6WDWHVY&RWWRQ6&WDW FRPPLVVLRQRIZKLFKZDVWKHREMHFWRIWKHFRQVSLUDF\l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j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jVUXOLQJRFFXUUHGDIWHUWKH6XSUHPH&RXUWjVGHFLVLRQLQ GHFLVLRQ WKDW mµDIIHFWV VXEVWDQWLDO ULJKWVj LV PRVW FRPPRQO\ XQGHUVWRRG $SSUHQGL Y 8QLWHG 6WDWHV 86 WKH FRXUW DV D GHFLVLRQ WKDW DIIHFWHG WKH RXWFRPH RI WKH SURFHHGLQJVl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sRKQVRQ Y 8QLWHG 6WDWHV 86 E\ DYRLGLQJ WKH \HDUVZLWK86&E'OLPLWLQJDVHQWHQFHIRU mVXEVWDQWLDO ULJKWVl TXHVWLRQ DQG GLVPLVVLQJ WKH FODLP RQ WKH ILQDO IDFWRU DQXQNQRZQTXDQWLW\RIPDULMXDQDWRWHQ\HDUV IRU FRQVLGHUDWLRQ LI WKH HUURU DIIHFWHG WKH IDLUQHVV LQWHJULW\ RU SXEOLF UHSXWDWLRQ RI MXGLFLDO SURFHHGLQJV