0DOD\DQ/DZ-RXUQDO5HSRUWV9ROXPH&2(/+2Y7+(38%/,&6(59,&(6&200,66,21>@

0/-E1RYHPEHU

SDJHV

>@0/-E

&2(/+2Y7+(38%/,&6(59,&(6&200,66,21

6HHDOVR>@0/-

2&-./
21*-
25,*,1$7,1*027,21122)
1RYHPEHU

&RQWUDFW3XEOLF6HUYLFHV&RPPLVVLRQLQYLWLQJDSSOLFDWLRQVIRUSRVWV,QYLWDWLRQE\QHZVSDSHU4XDOLILHG
DFFHSWDQFHRIDSSOLFDWLRQQRWFRPPXQLFDWHGWRDSSOLFDQW:KHWKHURQSUREDWLRQ6XEVHTXHQWWHUPLQDWLRQRI
DSSOLFDQW
VDSSRLQWPHQWDVRIILFHURQSUREDWLRQ:KHWKHU&RPPLVVLRQDFWHGXOWUDYLUHV

0DVWHUDQG6HUYDQW'LVPLVVDO:KHWKHUXOWUDYLUHV

&HUWLRUDUL2UGHURIWRTXDVKGHFLVLRQRIWKH3XEOLF6HUYLFHV&RPPLVVLRQ

7KHDSSOLFDQWD+HDOWK,QVSHFWRUXQGHUWKH7RZQ%RDUG7DQMRQJ0DOLPDSSOLHGIRUWKHSRVWRI$VVLVWDQW
3DVVSRUW2IILFHULQWKH)HGHUDWLRQRI0DOD\D*RYHUQPHQW2YHUVHD0LVVLRQVDGYHUWLVHGLQWKH0DOD\0DLO
QHZVSDSHUGDWHG)HEUXDU\DVIROORZV$SSOLFDQWVZLOOEHVHOHFWHGDFFRUGLQJWRWKHIROORZLQJRUGHURI
SUHIHUHQFHL6HUYLQJ$VVLVWDQW3DVVSRUW2IILFHUDQGVHUYLQJ-XQLRU$VVLVWDQW3DVVSRUW2IILFHUVLQWKH
,PPLJUDWLRQ'HSDUWPHQWZKRKDYHKDGQRWOHVVWKDQ\HDUV
VHUYLFHDQGSRVVHVV6FKRRO&HUWLILFDWHLL$OO
VHUYLQJ*RYHUQPHQW2IILFHUVZKRKDYHKDG\HDUV
VHUYLFHDQGZKRSRVVHVV6FKRRO&HUWLILFDWH2IILFHUVZLOO
EHHOLJLEOHIRURYHUVHDVDOORZDQFHZKHQDEURDG)UHHSDVVDJHVWRRYHUVHDVSRVWV)UHHPHGLFDOEXWQRW
GHQWDODWWHQWLRQ2XWILWDOORZDQFHV$SSOLFDWLRQVWKRVHIURPVHUYLQJ2IILFHUVWREHVXEPLWWHGWKURXJK+HDGV
RI'HSDUWPHQWZLWK&RQILGHQWLDO5HSRUWVDQG5HFRUGRI6HUYLFHWRUHDFKWKH6HFUHWDU\3XEOLF6HUYLFH
&RPPLVVLRQ'HVLJQDWH<RXQJ5RDG.XDOD/XPSXUWK)HEUXDU\&RQVHTXHQWO\WKHDSSOLFDQWZDV
LQIRUPHGWKDWKHZDVDFFHSWHGDQGDIWHUXQGHUJRLQJDSHULRGRIWUDLQLQJKHZDVSRVWHGWRWKH,PPLJUDWLRQ2IILFH
.XDOD/XPSXUXQWLO'HFHPEHUZKHQKHZDVWUDQVIHUUHGWRWKH,PPLJUDWLRQ2IILFHDW-RKRUH%DKUX2Q
1RYHPEHUWKH6HFUHWDU\WRWKH3XEOLF6HUYLFHV&RPPLVVLRQLQDOHWWHUDGGUHVVHGWRWKHDSSOLFDQWDV
$VVLVWDQW3DVVSRUW2IILFHURQ3UREDWLRQLQIRUPHGKLPWKDWIROORZLQJDUHSRUWIURPWKH&RQWUROOHURI,PPLJUDWLRQ
FRQFHUQLQJKLVFRQGXFWLQWKHLUUHJXODULVVXHRIFHUWDLQSDVVSRUWVGLVFLSOLQDU\DFWLRQZDVEHLQJWDNHQDJDLQVWKLP
ZLWKDYLHZWRKLVGLVPLVVDO7KHDSSOLFDQWPDGHUHSUHVHQWDWLRQVDVLQYLWHGE\WKHVDLGOHWWHUDQGRQ'HFHPEHU

0/-EDW
WKHDSSOLFDQWZDVLQIRUPHGWKDWWKHUHVSRQGHQWKDGGHFLGHGWKDWKHVKRXOGQRWEHGLVPLVVHGEXWWKDWKLV
DSSRLQWPHQWRQSUREDWLRQEHWHUPLQDWHGIRUWKZLWKE\SD\PHQWRIRQHPRQWK
VVDODU\LQOLHXRIQRWLFH7KH
DSSOLFDQWQRZPRYHGWKHFRXUWIRUDQRUGHURIFHUWLRUDULWRTXDVKWKHGHFLVLRQRIWKHUHVSRQGHQWVRQWKHJURXQGV
RIHUURULQODZZDQWRIMXULVGLFWLRQDQGIDLOXUHWRREVHUYHWKHSULQFLSOHVRIQDWXUDOMXVWLFH

+HOGWKH0DOD\0DLODGYHUWLVHPHQWZDVDQLQYLWDWLRQWRTXDOLILHGSHUVRQVWRDSSO\DQGWKHUHVXOWLQJDSSOLFDWLRQV
ZHUHRIIHUV7KHLQIRUPDWLRQFRQYH\HGWRWKHDSSOLFDQWZDVDQXQTXDOLILHGDFFHSWDQFHWRMRLQWKHRYHUVHDV
PLVVLRQDQGKHVRXQGHUVWRRGLWDQGQRPHQWDOUHVHUYDWLRQRUWDFLWPLVXQGHUVWDQGLQJRQWKHSDUWRIWKH
UHVSRQGHQWVVKRXOGEHSHUPLWWHGWRGHVWUR\WKHFRQWUDFWXDOREOLJDWLRQ7KHUHVSRQGHQWVWKHUHIRUHDFWHGXOWUDYLUHV
LQSXUSRUWLQJWRWHUPLQDWHWKHDSSOLFDQW
VVHUYLFHVLQWKHPDQQHUDSSOLFDEOHWRRIILFHUVRQSUREDWLRQ

&DVHUHIHUUHGWR

6ROOHY%XWFKHU>@.%

$33/,&$7,21IRUOHDYHWRDSSO\IRUDQRUGHURIFHUWLRUDUL
&&5DVD5DWQDPIRUWKHDSSOLFDQW

$X$K:DK7UHDVXU\6ROLFLWRUIRUWKHUHVSRQGHQWV

21*-

7KHDSSOLFDQWKDYLQJREWDLQHGOHDYHIURP$GDPV-QRZPRYHVWKHFRXUWIRUDQRUGHURIFHUWLRUDULWRTXDVKD
GHFLVLRQRIWKHUHVSRQGHQWVWKH3XEOLF6HUYLFHV&RPPLVVLRQGDWHG'HFHPEHUWHUPLQDWLQJIRUWKZLWK
WKHDSSRLQWPHQWRIWKLVDSSOLFDQWDV$VVLVWDQW3DVVSRUW2IILFHULQ2YHUVHD0LVVLRQVRIWKH)HGHUDWLRQRI0DOD\D
*RYHUQPHQWE\SD\PHQWRIRQHPRQWK
VVDODU\LQOLHXRIQRWLFH

7KHUHLVQRGLVSXWHDVWRDQ\RIWKHPDWHULDOIDFWV2Q)HEUXDU\DQDGYHUWLVHPHQWLQWKH0DOD\0DLO
QHZVSDSHULQYLWHGDSSOLFDQWVIRUSRVWVRI$VVLVWDQW3DVVSRUW2IILFHUIRUVHUYLFHLQ)HGHUDWLRQRI0DOD\D
*RYHUQPHQW2YHUVHD0LVVLRQV,WZDVFRXFKHGLQWKHIROORZLQJWHUPV

$SSOLFDQWVZLOOEHVHOHFWHGDFFRUGLQJWRWKHIROORZLQJRUGHURISUHIHUHQFHL6HUYLQJ$VVLVWDQW3DVVSRUW2IILFHUVDQG
VHUYLQJ-XQLRU$VVLVWDQW3DVVSRUW2IILFHUVLQWKH,PPLJUDWLRQ'HSDUWPHQWZKRKDYHKDGQRWOHVVWKDQ\HDUV
VHUYLFHDQG
SRVVHVV6FKRRO&HUWLILFDWHLL$OOVHUYLQJ*RYHUQPHQW2IILFHUVZKRKDYHKDG\HDUV
VHUYLFHDQGZKRSRVVHVV6FKRRO
&HUWLILFDWHLLL3HUVRQVQRWLQ*RYHUQPHQW6HUYLFHZKRKDYH6FKRRO&HUWLILFDWHZLWKDFUHGLWLQ(QJOLVKDQGZKRKDYH
DWWDLQHGWKHDJHRIEXWKDYHQRWDWWDLQHGWKHDJHRI6DODU\VFDOHî2IILFHUVZLOOEHHOLJLEOHIRU
RYHUVHDVDOORZDQFHZKHQDEURDGLQOLHXRI0DOD\DQFRVWRIOLYLQJDOORZDQFHFRVWRIOLYLQJDOORZDQFHDWFXUUHQWUDWHVLV
SD\DEOHIRUVHUYLFHLQ0DOD\DZKHQRYHUVHDVDOORZDQFHLVQRWSD\DEOH)UHHSDVVDJHVWRRYHUVHDVSRVWVZLOOEHSDLGRQ
DSSURYHGWHUPV)UHHKRXVLQJRUDQDSSURYHGDOORZDQFHLQVWHDGZLOOEHSURYLGHG)UHHPHGLFDOEXWQRWGHQWDO
DWWHQWLRQ2XWILWDOORZDQFHVDWDSSURYHGUDWHVPD\EHFODLPHG$SSOLFDWLRQVWKRVHIURPVHUYLQJRIILFHUVWREHVXEPLWWHG
WKURXJK+HDGVRI'HSDUWPHQWZLWK&RQILGHQWLDO5HSRUWVDQG5HFRUGRI6HUYLFHWRUHDFKWKH6HFUHWDU\3XEOLF6HUYLFHV
&RPPLVVLRQ'HVLJQDWH<RXQJ5RDG.XDOD/XPSXUWK)HEUXDU\

7KHDSSOLFDQWZDVWKHQD+HDOWK,QVSHFWRUXQGHUWKH7RZQ%RDUG7DQMRQJ0DOLP+HKDGEHHQLQWKHVHUYLFHRI
WKH3HUDN6WDWH*RYHUQPHQWVLQFHDQGWKXVFDPHZLWKLQFDWHJRU\LL+LVDSSOLFDWLRQDFFRUGLQJO\FDPHWR
EHPDGHWKURXJKWKH&KDLUPDQRIWKH7RZQ%RDUG7DQMRQJ0DOLP

1RWLFHRIKLVVHOHFWLRQE\WKH3XEOLF6HUYLFHV&RPPLVVLRQ'HVLJQDWHZDVFRQYH\HGWRWKH6WDWH6HFUHWDU\

3HUDNE\DOHWWHUGDWHG-XQHIURPWKH&RQWUROOHURI,PPLJUDWLRQ)HGHUDWLRQZKLFKZDVDVIROORZV

 ,00,*5$7,212)),&(

 32%2;
1R,00+4 3(1$1*
7HO UG-XQH
6(&6 
7KH+RQRXUDEOH

7KH6WDWH6HFUHWDU\

3HUDN,32+

:LWKUHIHUHQFHWR\RXULQ3N6HF6GDWHGIRUZDUGLQJDQDSSOLFDWLRQIURP0U0HUHGLWK

&RHOKR+HDOWK,QVSHFWRU70DOLPIRUDSSRLQWPHQWDV$VVLVWDQW3DVVSRUW2IILFHULQ2YHUVHD0LVVLRQVRIWKH
)HGHUDWLRQRI0DOD\D*RYHUQPHQW,KDYHWRLQIRUP\RXWKDWKHKDVEHHQVHOHFWHGE\WKH3XEOLF6HUYLFH
&RPPLVVLRQ'HVLJQDWHIRUWKHDSSRLQWPHQWDSSOLHGIRU

+HZLOOVWDUWRQWKHLQLWLDOVDODU\RIWKHVFDOHLHSPDQGVHUYHDSUREDWLRQDU\SHULRGRIWKUHH\HDUVZLWK
HIIHFWIURPWKHGDWHKHDVVXPHVGXW\ZLWKWKLVGHSDUWPHQWIRUWUDLQLQJ

:LOO\RXWKHUHIRUHSOHDVHOHWPHNQRZDVVRRQDVSRVVLEOHZKHQEHFDQEHUHOHDVHGIURP\RXUGHSDUWPHQWWR
HQDEOHKLPWRUHSRUWIRUGXW\WRWKH'HSXW\&RQWUROOHURI,PPLJUDWLRQ.XDOD/XPSXU

7KHVH$VVLVWDQW3DVVSRUW2IILFHUVDUHUHTXLUHGXUJHQWO\IRUWUDLQLQJIRUGXWLHVRYHUVHDVVRRQDIWHU0HUGHND
<RXUFRRSHUDWLRQLQDOORZLQJ0U0HUHGLWK&RHOKRHDUO\UHOHDVHZLOOEHPXFKDSSUHFLDWHG

 6G':%LJOH\

 &RQWUROOHURI,PPLJUDWLRQ
)HGHUDWLRQ

FF

'&,./

7KH6WDWH6HFUHWDU\UHSOLHGWRWKH&RQWUROOHURI,PPLJUDWLRQRQ-XQH&RSLHVRIKLVOHWWHUZHUH
DOVRDGGUHVVHGUHVSHFWLYHO\WRWKH'HSXW\&RQWUROOHURI,PPLJUDWLRQ.XDOD/XPSXUDQGWRWKH&KDLUPDQRI
WKH7DQMRQJ0DOLP7RZQ%RDUGIRUWKHLULQIRUPDWLRQDQGQHFHVVDU\DFWLRQ2QWKH7RZQ%RDUG&KDLUPDQ
V
FRS\RIVXFKOHWWHUDSSHDUFHUWDLQPLQXWHVDGGUHVVHGWRWKHDSSOLFDQWE\RURQEHKDOIRIWKH&KDLUPDQRQ
-XQHDQGWKRVHPDGHE\WKHDSSOLFDQWKLPVHOI7KH&KDLUPDQ
VFRS\RIWKHOHWWHULVUHSURGXFHG
LQIXOOEHORZ

5HI1RLQ7%70

WK-XQH

1RLQ3N6HF6

6LU

$SSRLQWPHQWRI0U0HUHGLWK&RHOKR+HDOWK,QVSHFWRU7DQMRQJ0DOLPDV$VVLVWDQW3DVVSRUW
2IILFHULQ2YHUVHD0LVVLRQVRIWKH)HGHUDWLRQRI0DOD\D*RYHUQPHQW



,DPGLUHFWHGWRUHIHUWR\RXUPHPR1R,00+4GDWHGWKHUG-XQHRQWKHDERYHVXEMHFWDQGWR
LQIRUP\RXWKDW0U0HUHGLWK&RHOKRZLOOEH
0/-EDW
UHOHDVHGDWWKHHQGRIWKLVPRQWKWRHQDEOHKLPWRDVVXPHGXW\ZLWK\RXU'HSDUWPHQWIRUWUDLQLQJZLWKHIIHFWIURP
VW-XO\

 ,DP6LU

 <RXU2EHGLHQWVHUYDQW

 6G5DMD$EGXO$]L]

 IRU6WDWH6HFUHWDU\

 3HUDN

7KH&RQWUROOHURI,PPLJUDWLRQ

)HGHUDWLRQRI0DOD\D

32%R[

3(1$1*

FF

7KH'\&RQWUROOHURI,PPLJUDWLRQ.XDOD/XPSXU

FF
 7KH&KDLUPDQ7RZQ%RDUG7DQMRQJ0DOLP

)RUZDUGHGIRULQIRUPDWLRQDQGQHFHVVDU\DFWLRQ

$UUDQJHPHQWVDUHEHLQJPDGHVHSDUDWHO\WRUHSODFH0U&RHOKRE\DQRWKHU+HDOWK,QVSHFWRU

 6G5DMD$EGXO$]L]

 IRU6WDWH6HFUHWDU\

 3HUDN

0U&RHOKR

<RXPD\OHDYHRQWK-XQHEXWDUUDQJHWRFRPHEDFNIRUDKDQGRYHUZKHQWKHQHZ+HDOWK,QVSHFWRUUHSRUWV
KHUH

 6G$0DMLG

 

&KDLUPDQ7RZQ%RDUG

1RWHG7KDQN\RX

6G0&RHOKR

)URPWKHDERYHWZROHWWHUVLWLVFOHDUDQGQRWGHQLHGE\WKHUHVSRQGHQWVWKDW0U%LJOH\GLGQRWVHQG

DFRS\RIKLVOHWWHUWRWKHDSSOLFDQWQRFRS\WKHUHRIZDVVHQWE\WKH6WDWH6HFUHWDU\3HUDNWRWKH
7RZQ%RDUG&KDLUPDQ&RQVHTXHQWO\DOOWKDWWKHDSSOLFDQWNQHZRUKDGPHDQVRILQIRUPLQJKLPVHOIZDV
WKDWKLVDSSOLFDWLRQKDGEHHQDFFHSWHGDQGWKDWKHKDGEHHQVHOHFWHGIRUWKHDSSRLQWPHQW

7KHDUULYDORIWKHUHOLHYLQJ+HDOWK,QVSHFWRUKDYLQJEHHQGHOD\HGIRUDIHZGD\VWKHDSSOLFDQWDVVXPHG
WKHGXWLHVRIWKHQHZDSSRLQWPHQWDW.XDOD/XPSXURQ-XO\LQVWHDGRI-XQH$IWHUXQGHUJRLQJD
SHULRGRIWUDLQLQJDWWKH*RYHUQPHQW6WDII7UDLQLQJ&HQWUHLQ.XDOD/XPSXUWKHDSSOLFDQWZDVSRVWHGWR
WKH,PPLJUDWLRQ2IILFH.XDOD/XPSXUXQWLO'HFHPEHUZKHQKHZDVWUDQVIHUUHGWRWKH,PPLJUDWLRQ
2IILFHDW-RKRUH%DKUX

2Q1RYHPEHUWKH6HFUHWDU\RIWKH3XEOLF6HUYLFHV&RPPLVVLRQVHQWWKURXJKWKH&RQWUROOHURI
,PPLJUDWLRQ)HGHUDWLRQRI0DOD\DDOHWWHUDGGUHVVHGWRWKHDSSOLFDQWDV$VVLVWDQW3DVVSRUW2IILFHURQ
3UREDWLRQP\LWDOLFV,WUHDGVDVIROORZV

6852+$1-$<$3(5.+,'0$7$1$:$0

38%/,&6(59,&(6&200,66,21

<281*52$'

.8$/$/80385

2XU5HI36&

1RYHPEHU

&21),'(17,$/

6LU

,DPGLUHFWHGWRLQIRUP\RXWKDWIROORZLQJDUHSRUWIURPWKH&RQWUROOHURI,PPLJUDWLRQ)HGHUDWLRQRI0DOD\D
 FRQFHUQLQJ\RXUFRQGXFWOLNHO\WREULQJWKHSXEOLFVHUYLFHLQWRGLVUHSXWHLQFRQQHFWLRQZLWKWKHLUUHJXODULVVXHRI
VRPH)HGHUDWLRQRI0DOD\DSDVVSRUWVZKLOH\RXZHUHDWWDFKHGWRWKH3DVVSRUW6HFWLRQRIWKH,PPLJUDWLRQ
2IILFH.XDOD/XPSXUGLVFLSOLQDU\DFWLRQLVEHLQJWDNHQDJDLQVW\RXXQGHU*2'ZLWKDYLHZWR\RXUGLVPLVVDO
RQWKHFKDUJHVWDWHGLQWKHDWWDFKHGVFKHGXOHDQGDSSHQGLFHV

,DPWRLQYLWH\RXWRVXEPLWDQ\UHSUHVHQWDWLRQVRQZKLFK\RXPD\ZLVKWRUHO\WRH[FXOSDWH\RXUVHOIZLWKLQ
GD\VRIUHFHLSWRIWKLVOHWWHU

3OHDVHDFNQRZOHGJHUHFHLSWRIWKLVOHWWHU

 ,DP6LU

 <RXUREHGLHQWVHUYDQW

 6JG-5+&KDOPHUV

 IRU6HFUHWDU\

 3XEOLF6HUYLFHV&RPPLVVLRQ

0U0&RHOKR

$VVLVWDQW3DVVSRUW2IILFHURQ3UREDWLRQ

7KURXJK7KH&RQWUROOHURI,PPLJUDWLRQ )HGHUDWLRQRI0DOD\D

FRS\WR3HQDQJ

 6JG.KHZ.RQ<RQJ

 I&RQWUROOHURI,PPLJUDWLRQ

 )HGHUDWLRQRI0DOD\D

 1RYHPEHU

7KHFKDUJHDERYHUHIHUUHGWRDOOHJHGJURVVQHJOHFWRIGXW\LQIDLOLQJWRFDUU\RXWGHSDUWPHQWDOLQVWUXFWLRQV
LQFRQQHFWLRQZLWKWKHLVVXHRIIRXU)HGHUDWLRQRI0DOD\DSDVVSRUWVWRSHUVRQVZKRZHUHUHVLGHQWLQ
6LQJDSRUHWKHUHE\UHQGHULQJWKHDSSOLFDQWOLDEOHWRGLVPLVVDOLQDFFRUGDQFHZLWK5HJXODWLRQRIWKH
3XEOLF2IILFHUV&RQGXFW 'LVFLSOLQH5HJXODWLRQV

2Q1RYHPEHUWKHDSSOLFDQWVHQWLQKLVUHSO\GHQ\LQJWKHFKDUJHDQGVHWWLQJRXWDWJUHDWOHQJWK
IDFWVDQGFLUFXPVWDQFHVLQH[FXOSDWLRQDQGUHTXHVWLQJLQFRQFOXVLRQDQRSSRUWXQLW\RIEHLQJKHDUGLQ
SHUVRQEHIRUHDQ\IXUWKHUSURFHHGLQJVZHUHWDNHQRUGHFLVLRQPDGH

2Q'HFHPEHUWKHUHVSRQGDQW
VGHFLVLRQZDVFRQYH\HGWRWKHDSSOLFDQWLQWKHIROORZLQJOHWWHU

6852+$1-$<$3(5.+,'0$7$1$:$0

38%/,&6(59,&(6&200,66,21

<281*52$'

.8$/$/80385

'HFHPEHU

2XU5HI36&&RQI

&21),'(17,$/

6LU

,DPGLUHFWHGWRUHIHUWRWKLVRIILFH
VOHWWHUWR\RXXQGHUUHIHUHQFH36&&RQIGDWHGWK1RYHPEHU
DQGWR\RXUUHSO\WKHUHWRGDWHGWK1RYHPEHU
0/-EDW
 ,DPWRLQIRUP\RXWKDWDIWHUGXHFRQVLGHUDWLRQRI\RXUUHSUHVHQWDWLRQVDQGWKHFLUFXPVWDQFHVRIWKHFDVHWKH
3XEOLF6HUYLFHV&RPPLVVLRQKDVGHFLGHGWKDW\RXVKRXOGQRWEHGLVPLVVHG

,DPKRZHYHUWRLQIRUP\RXWKDWWKH&RPPLVVLRQKDVGHFLGHGWKDW\RXUDSSRLQWPHQWRQSUREDWLRQEH
WHUPLQDWHGIRUWKZLWKE\SD\PHQWRIRQHPRQWK
VVDODU\LQOLHXRIQRWLFH

 ,DP6LU

 <RXUREHGLHQWVHUYDQW

 6G-5+&KDOPHUV

 IRU6HFUHWDU\

 3XEOLF6HUYLFHV&RPPLVVLRQ

0U0&RHOKR

$VVLVWDQW3DVVSRUW2IILFHURQ3UREDWLRQ

7KURXJK7KH&RQWUROOHURI,PPLJUDWLRQ

)HGHUDWLRQRI0DOD\D

3HQDQJ

 6G.KHZ.RQ<RQJ

 I&RQWUROOHURI,PPLJUDWLRQ

 )HGHUDWLRQRI0DOD\D

7KHDSSOLFDQWQRZPRYHVWKHFRXUWIRUDQRUGHURIFHUWLRUDULWRTXDVKWKHVDLGGHFLVLRQRQWKHJURXQGVRI
HUURULQODZZDQWRIMXULVGLFWLRQDQGIDLOXUHLQREVHUYLQJWKHSULQFLSOHVRIQDWXUDOMXVWLFH

7KHJLVWRIWKHFRQWHQWLRQRIFRXQVHOIRUWKHDSSOLFDQWDV,XQGHUVWDQGLWLVWKDWWKHRIIHUDV
FRPPXQLFDWHGWRWKHDSSOLFDQWDQGDFFHSWHGE\KLPFRQVWLWXWHGDFRQWUDFWZKLFKSUHFOXGHGWKH
UHVSRQGHQWVIURPWHUPLQDWLQJKLVVHUYLFHVLQWKHPDQQHUWKDWWKH\KDGFKRVHQ7KHDUJXPHQWSHUFRQWUD
RQEHKDOIRIWKHUHVSRQGHQWVLVWKDWWKHUHQHYHUZDVDQ\FRQVHQVXVDGLGHPDVVXPLQJWKDWWKHDSSOLFDQW
KDGKDGLQIDFWDQ\PLVFRQFHSWLRQDVWRKLVDSSRLQWPHQWEHLQJRWKHUZLVHWKHQDVDSUREDWLRQHULQWKHILUVW
LQVWDQFH

7KHLVVXHWKHUHIRUHDSSHDUVWRPHWREHSXUHO\DQGVLPSO\RQHRIFRQVWUXFWLRQ7KHUHEHLQJQRSDUROH
DJUHHPHQWZKDW,KDYHWRGHWHUPLQHLVZKHWKHURQWKHGRFXPHQWVEHIRUHPH,DPVDWLVILHGWKDWWKHUHZDV
DFRQWUDFWDQGLIVRZKHWKHUWKHDSSOLFDQWZDVE\WKHWHUPVWKHUHRIWDNHQLQWRVHUYLFHRQSUREDWLRQ7KH
PDWHULDOGRFXPHQWVDUHWKHLQYLWDWLRQWRDSSOLFDQWVFRQWDLQHGLQWKH0DOD\0DLODQGWKHFRS\OHWWHURI
-XQHIURPWKH6WDWH6HFUHWDU\3HUDNWR0U%LJOH\ZKLFKZDVVKRZQWRWKHDSSOLFDQW

,QWKHFRQVWUXFWLRQRIFRQWUDFWVLQZULWLQJLWLVXQGRXEWHGO\WUXHWKDWWKHLQWHQWLRQRIWKHSDUWLHVPXVWEH
REMHFWLYHO\VRXJKWIURPWKHZULWLQJVWKHPVHOYHV7KH0DOD\0DLODGYHUWLVHPHQWZDVDQLQYLWDWLRQWR
TXDOLILHGSHUVRQVWRDSSO\7KHUHVXOWLQJDSSOLFDWLRQVZHUHRIIHUV6XFKRIIHUVFRXOGHLWKHUEHDFFHSWHG
VLPSO\RUZLWKWKHLPSRVLWLRQRIFRQGLWLRQVDVWHUPVRIWKHFRQWUDFWDGGLWLRQDOWRWKRVHVHWRXWLQWKH
DGYHUWLVHPHQW,QWKHODWWHUFDVHWKHRIIHUVE\WKHDSSOLFDQWVZRXOGKDYHEHHQPHWE\FRXQWHURIIHUV
ZKLFKWKHRIIHUHUVFRXOGDFFHSWRUUHIXVH0U%LJOH\
VOHWWHUGLGQRWDVDFRXQWHURIIHUVKRXOGDVN
ZKHWKHULWZDVDFFHSWHGRUQRW,QWKLVFDVH,DPRIRSLQLRQWKDWWKHLQIRUPDWLRQFRQYH\HGWRWKHDSSOLFDQW
ZDVDQXQTXDOLILHGDFFHSWDQFHDQGKHVRXQGHUVWRRGLW7KHUHZDVQRTXHVWLRQRIKLVDSSRLQWPHQWEHLQJ
RQSUREDWLRQRUIRUDQ\SHULRGRISUREDWLRQ7KHFRS\OHWWHURI-XQHZDVKHDGHG$SSRLQWPHQWRI0U
0HUHGLWK&RHOKR+HDOWK,QVSHFWRU7DQMRQJ0DOLPDV$VVLVWDQW3DVVSRUW2IILFHULQ2YHUVHD0LVVLRQVRI
WKH)HGHUDWLRQRI0DOD\D*RYHUQPHQW7KHPLQXWHVRQWKHFRS\VHQWWRWKH7RZQ%RDUG&KDLUPDQVDLG
QRWKLQJDERXWHQFORVLQJDFRS\RI0U%LJOH\
VOHWWHURI-XQHDQGDVXEVHTXHQWOHWWHURQWKHUHFRUG
GDWHG)HEUXDU\IURPWKH6WDWH6HFUHWDU\3HUDNWR0U%LJOH\FRQILUPWKDW7KH&KDLUPDQ7RZQ
%RDUG7DQMRQJ0DOLPQRZLQIRUPVPHWKDWKHLVXQDEOHWRWUDFHHYLGHQFHWRFRQILUPWKDWWKHFRQGLWLRQV
ZHUHEURXJKWWRWKHQRWLFHRI0U&RHOKR,DPWKHUHIRUHHQWLUHO\VDWLVILHGWKDWWKHDSSOLFDQW
VRIIHUWRMRLQ
WKH2YHUVHD0LVVLRQVKDGEHHQDFFHSWHGXQFRQGLWLRQDOO\DQGZDVVRXQGHUVWRRGE\KLPZKHQKHGLGMRLQ
WKHVHUYLFH

7KHEUHDNGRZQLQWKHWUDQVPLVVLRQRI0U%LJOH\
VPHVVDJHLQSURSHUIRUPWRWKHDSSOLFDQWZDVDQ
XQIRUVHHDEOHDFFLGHQWIRUZKLFKWKHODWWHUVKRXOGLQQRZD\EHKHOGUHVSRQVLEOH7KHIDXOWOD\UDWKHUZLWK
WKRVHZKRVHGXW\LWZDVWRFRQYH\WKHPHVVDJHLQXQJDUEOHGIRUP7KLVFRXOGYHU\HDVLO\KDYHEHHQGRQH
E\DWWDFKLQJDFRS\RI0U%LJOH\
VOHWWHUWRWKHFRS\UHSO\WKHUHWRVHQWWRWKH7RZQ%RDUG&KDLUPDQ
ZKLFKFOHDUO\KDGQRWEHHQGRQH,QWKHUHVXOWWKLVFDVHLVLQGLVWLQJXLVKDEOHIURPRQHZKHUHDQXQTXDOLILHG
DFFHSWDQFHRIDQRIIHULVFRPPXQLFDWHGWRWKHRIIHUHUEXWZLWKDVHFUHWPHQWDOUHVHUYDWLRQE\WKHRIIHUHH
,IDLOWRVHHKRZVXFKPHQWDOUHVHUYDWLRQRUVRPHRWKHUWDFLWPLVXQGHUVWDQGLQJVKRXOGEHSHUPLWWHGWR
GHVWUR\WKHFRQWUDFWXDOREOLJDWLRQ

7KHPLVWDNHLQWKLVFDVHGRHVQRWLQDQ\HYHQWUHQGHUWKHFRQWUDFWYRLGDELQLWLR:LWKUHVSHFW,ZRXOG
IROORZZKDW'HQQLQJ/-DVKHWKHQZDVVDLGLQ6ROOHY%XWFKHU>@.%

$OOSUHYLRXVGHFLVLRQVRQWKLVVXEMHFWPXVWQRZEHUHDGLQWKHOLJKWRI%HOOY/HYHU%URV7KHFRUUHFWLQWHUSUHWDWLRQ
RIWKDWFDVHWRP\PLQGLVWKDWRQFHDFRQWUDFWKDVEHHQPDGHWKDWLVWRVD\RQFHWKHSDUWLHVZKDWHYHUWKHLU
LQPRVWVWDWHVRIPLQGKDYHWRDOORXWZDUGDSSHDUDQFHVDJUHHGZLWKVXIILFLHQWFHUWDLQW\LQWKHVDPHWHUPVRQWKH
VDPHVXEMHFWPDWWHUWKHQWKHFRQWUDFWLVJRRGXQOHVVDQGXQWLOLWLVVHWDVLGHIRUIDLOXUHRIVRPHFRQGLWLRQRQZKLFK
WKHH[LVWHQFHRIWKHFRQWUDFWGHSHQGVRUIRUIUDXGRURQVRPHHTXLWDEOHJURXQG1HLWKHUSDUW\FDQUHO\XSRQKLV
RZQPLVWDNHWRVD\WKDWLWZDVDQXOOLW\IURPWKHEHJLQQLQJQRPDWWHUWKDWLWZDVDPLVWDNHZKLFKWRKLVPLQGZDV
IXQGDPHQWDODQGQRPDWWHUWKDWWKHRWKHUSDUW\NQHZWKDWKHZDVXQGHUDPLVWDNH$IRUWLRULLIWKHRWKHUSDUW\GLG
QRWNQRZRIWKHPLVWDNHEXWVKDUHGLW

,DPWKHUHIRUHRIRSLQLRQWKDWLQSXUSRUWLQJWRWHUPLQDWHWKHDSSOLFDQW
VVHUYLFHLQWKHPDQQHUDSSOLFDEOHWR
RIILFHUVRQSUREDWLRQWKHUHVSRQGHQWVZHUHDFWLQJXOWUDYLUHV+DGKHEHHQJLYHQ
0/-EDW
WKHRSSRUWXQLW\RIEHLQJKHDUGEHIRUHWKHGHFLVLRQZDVPDGHWRWHUPLQDWHKLVDSSRLQWPHQWWKHQLWZRXOG
QRWKDYHPDWWHUHGRQHIDUWKLQJZKHWKHUWKHDSSOLFDQWZDVRUZDVQRWRQSUREDWLRQZKHQKLVDSSRLQWPHQW
ZDVWHUPLQDWHG7KHUHVSRQGHQWVKRZHYHUKDGHOHFWHGWRWUHDWWKHDSSOLFDQWDVDSUREDWLRQDU\RIILFHU,Q
WKDWYLHZWKH\ZHUHZURQJ,DFFRUGLQJO\KROGWKDWWKHDSSOLFDQWVKRXOGEHJUDQWHGH[GHELWRMXVWLWLDHWKH
RUGHUWKDWKHVHHNVDQGFRVWV

2UGHUJUDQWHG