03a0213p.06

7KH +RQRUDEOH $OJHQRQ / 0DUEOH\ 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

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$SSHOOHH
Y
'211$ /$1*
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV
1R²5LFKDUG$(QVOHQ'LVWULFW-XGJH
6XEPLWWHG-XQH
'HFLGHGDQG)LOHG-XQH
%HIRUH%2**6DQG*,/0$1&LUFXLW-XGJHV
0$5%/(<'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
21%5,()7KRPDV&5RZVH\&XPPLQJ*HRUJLDIRU
$SSHOODQW 7KRPDV - *H]RQ $66,67$17 81,7('
8QLWHG6WDWHVY/DQJ 1R
67$7(6 $77251(< *UDQG 5DSLGV 0LFKLJDQ IRU
$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
521$/'/((*,/0$1&LUFXLW-XGJH'RQQD/DQJSOHG
JXLOW\ WR D RQHFRXQW LQIRUPDWLRQ FKDUJLQJ KHU ZLWK PDLO
IUDXG7KHGLVWULFWFRXUWVHQWHQFHGKHUWRDPRQWKWHUPRI
LPSULVRQPHQW IROORZHG E\ \HDUV RI VXSHUYLVHG UHOHDVH
/DQJDSSHDOVDVHQWHQFLQJHQKDQFHPHQWXQGHU8QLWHG6WDWHV
6HQWHQFLQJ*XLGHOLQHV†%ZKLFKFRQFHUQVWKHDEXVHRI
DSRVLWLRQRIWUXVWRUXVHRIDVSHFLDOVNLOO)RUWKHUHDVRQVVHW
IRUWKEHORZZH$)),50WKHMXGJPHQWRIWKHGLVWULFWFRXUW
,%$&.*5281'
$ )DFWXDOEDFNJURXQG
+HUPDQQ 0LOOHU ,QF +0, D IXUQLWXUH PDQXIDFWXULQJ
FRPSDQ\EDVHGLQ=HHODQG0LFKLJDQHPSOR\HG/DQJDVD
WUDGHLQVSHFLDOLVWIURP-DQXDU\RIWR)HEUXDU\RI
/DQJ¶VMREZDVWRKLUHFRQWUDFWRUVWRUHPRYHDQGGLVSRVHRI
XVHGRIILFHIXUQLWXUHIURPFRPSDQLHVWKDWKDGSXUFKDVHGQHZ
+0,IXUQLWXUH,Q-XQHRI/DQJFUHDWHGDQHQWLW\WKDW
VKH FDOOHG 6W\OH ,QF ZKLFK KDG D WHOHSKRQH DQVZHULQJ
VHUYLFHDQGDPDLOLQJDGGUHVVLQ0HPSKLV7HQQHVVHH
$V+0,¶VWUDGHLQVSHFLDOLVW/DQJSURFHVVHGDILFWLWLRXV
LQYRLFHIURP6W\OH,QFWR+0,LQ-DQXDU\RIIRUZRUN
WKDW KDG LQ IDFW EHHQ SURYLGHG E\ DQRWKHU FRPSDQ\ 6KH
UHFHLYHG SD\PHQW IURP +0, IRU WKH LQYRLFH WKHQ ZDLWHG
VHYHUDOPRQWKVWRGHWHUPLQHZKHWKHU+0,ZRXOGGLVFRYHUWKH
IUDXG 6DWLVILHG WKDW +0, ZDV LQ WKH GDUN /DQJ EHJDQ WR
URXWLQHO\ VXEPLW IUDXGXOHQW LQYRLFHV %\ WKH WLPH +0,
GLVFRYHUHGLQWKHVXPPHURIWKDW/DQJZDVGHIUDXGLQJ
LWVKHKDGVXEPLWWHGDSSUR[LPDWHO\IUDXGXOHQWLQYRLFHV
LQYROYLQJ 6W\OH ,QF +0, VXIIHUHG D WRWDO ORVV RI RYHU

-- 1 of 4 --

1R 8QLWHG6WDWHVY/DQJ
DVWKHUHVXOWRI/DQJ¶VFRQGXFWE\WKHWLPHWKDWKHU
HPSOR\PHQWZDVWHUPLQDWHGLQ)HEUXDU\RI
% 3URFHGXUDOEDFNJURXQG
,Q 0DUFK RI /DQJ ZDV FKDUJHG LQ D RQHFRXQW
LQIRUPDWLRQZLWKPDLOIUDXGLQYLRODWLRQRI86&†
6KHSOHGJXLOW\ +HUFDVHZDVWKHQUHIHUUHGWRWKH8QLWHG
6WDWHV3UREDWLRQ2IILFHIRUDSUHVHQWHQFHLQYHVWLJDWLRQDQG
UHSRUW
7KH3UHVHQWHQFH5HSRUW 365 SODFHG/DQJ¶VEDVHRIIHQVH
OHYHO DW WKHQ DGGHG OHYHOV IRU VSHFLILF RIIHQVH
FKDUDFWHULVWLFV ,W QH[W UHFRPPHQGHG D WZROHYHO
HQKDQFHPHQWEDVHGXSRQ8QLWHG6WDWHV6HQWHQFLQJ*XLGHOLQHV
†%ZKLFKFRQFHUQVWKHDEXVHRIDSRVLWLRQRIWUXVWRUXVH
RIDVSHFLDOVNLOO/DQJREMHFWHGWRWKLVHQKDQFHPHQW$IWHU
D KHDULQJ WKH GLVWULFW FRXUW RYHUUXOHG KHU REMHFWLRQ DQG
VHQWHQFHGKHUWRDPRQWKWHUPRILPSULVRQPHQWIROORZHG
E\\HDUVRIVXSHUYLVHGUHOHDVH7KLVWLPHO\DSSHDOIROORZHG
%RWKSDUWLHVKDYHVWDWHGWKDWRUDODUJXPHQWLVXQQHFHVVDU\
+DYLQJH[DPLQHGWKHEULHIVDQGWKHUHFRUGZHXQDQLPRXVO\
DJUHH WKDW ³WKH IDFWV DQG OHJDO DUJXPHQWV DUH DGHTXDWHO\
SUHVHQWHGLQWKHEULHIVDQGUHFRUGDQGWKHGHFLVLRQDOSURFHVV
ZRXOGQRWEHVLJQLILFDQWO\DLGHGE\RUDODUJXPHQW´)HG5
$SS3 D &
,,$1$/<6,6
/DQJFRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHGLQDGRSWLQJWKH
365¶V UHFRPPHQGDWLRQ WKDW KHU RIIHQVH OHYHO VKRXOG EH
LQFUHDVHGWZROHYHOVIRUDEXVLQJDSRVLWLRQRIWUXVW8QLWHG
6WDWHV 6HQWHQFLQJ *XLGHOLQHV † % UHTXLUHV VXFK DQ
HQKDQFHPHQW ZKHUH WKH GHIHQGDQW ³DEXVHG D SRVLWLRQ RI
SXEOLF RU SULYDWH WUXVW LQ D PDQQHU WKDW VLJQLILFDQWO\
IDFLOLWDWHGWKHFRPPLVVLRQRIFRQFHDOPHQWRIWKHRIIHQVH´
3DUDJUDSK RI /DQJ¶V 365 VWDWHG ³0V /DQJ KDYLQJ
ZRUNHGIRU+0,IRUDSSUR[LPDWHO\\HDUVDQGEHLQJWKH
RQO\ WUDGHLQ VSHFLDOLVW ZDV VXEMHFWHG WR VLJQLILFDQWO\ OHVV
8QLWHG6WDWHVY/DQJ 1R
VXSHUYLVLRQ EDVHG RQ KHU HVWDEOLVKHG WUXVW DQG VSHFLDOL]HG
SRVLWLRQ´ 7KH 365 WKHUHIRUH UHFRPPHQGHG D WZROHYHO
LQFUHDVH XQGHU † % /DQJ¶V DWWRUQH\ REMHFWHG WR WKLV
UHFRPPHQGDWLRQ ,Q D OHWWHU WR WKH SUREDWLRQ RIILFHU KH
ZURWH
0UV /DQJ FHUWDLQO\ GLG VWHDO IURP KHU HPSOR\HU
+RZHYHU VKH GLG QRW DEXVH D SRVLWLRQ RI SXEOLF RU
SULYDWHWUXVW6LQFH0UV/DQJZDVHPSOR\HGDVD
WUDGHLQ VSHFLDOLVW ZKR KDG WR VHQG DOO LQYRLFHV DQG
LQIRUPDWLRQWRFRUSRUDWHKHDGTXDUWHUVIRUDSSURYDOZH
GRQRWEHOLHYHWKDWKHUMREZDVDSRVLWLRQWKDWKHOGWKH
OHYHO RI WUXVW DQG GLVFUHWLRQ FRQWHPSODWHG E\ WKH
FRPPLVVLRQLQGUDIWLQJ866*†%7KXV0UV
/DQJ¶V2IIHQVHOHYHOVKRXOGQRWEHLQFUHDVHGE\WKHWZR
OHYHOV\RXFRQWHQGLQSDUDJUDSKQXPEHURI\RXU3UH
6HQWHQFH,QYHVWLJDWLRQ5HSRUW
7KH SUREDWLRQ RIILFHU UHVSRQGHG WR WKLV REMHFWLRQ LQ DQ
DGGHQGXP WR WKH 365 LQ ZKLFK KH UHSRUWHG WKDW KH KDG
VSRNHQ³ZLWKWKH0DQDJHURI%XVLQHVV5LVN$VVXUDQFHZKR
LQIRUPHGWKLVRIILFHU>WKDW@0V/DQJKDGWKHDXWKRULW\DQG
GLGVLJQIRUDOORIKHULQYRLFHV0V/DQJ¶VERVVZDVQRW
UHTXLUHG WR RYHUVHH KHU WUDQVDFWLRQV´ $W WKH VHQWHQFLQJ
KHDULQJ WKH GLVWULFW FRXUW RYHUUXOHG /DQJ¶V REMHFWLRQ
UHDVRQLQJDVIROORZV
$FFRUGLQJWRWKH0DQDJHURI%XVLQHVV5LVN$VVXUDQFH
IURP+HUPDQ0LOOHU>VLF@'HIHQGDQW/DQJDOWKRXJKQRW
RIILFLDOO\GHVLJQDWHGDPDQDJHUKDGWKHDXWKRULW\WRVLJQ
DOORIKHULQYRLFHVDQGZDVLQFKDUJHRIDOOWUDGHLQV,Q
DGGLWLRQ 'HIHQGDQW /DQJ¶V ERVV ZDV QRW UHTXLUHG WR
RYHUVHH KHU WUDQVDFWLRQV 'XH WR WKH REYLRXV
GLVFUHWLRQDU\QDWXUHRI/DQJ¶VSRVLWLRQVKHZDVDEOHWR
VXEPLW QXPHURXV IDOVH YRXFKHUV , WKLQN WZHQW\ IRU
SD\PHQWZLWKRXWREYLRXVGHWHFWLRQ,WKHUHIRUHILQG
KHU SRVLWLRQ GLG KROG WKH OHYHO RI WUXVW DQG GLVFUHWLRQ
FRQWHPSODWHGE\WKHHQKDQFHPHQWODQJXDJH
/DQJDUJXHVRQDSSHDOWKDWLUUHVSHFWLYHRIWKHPHULWVRIWKH
HQKDQFHPHQWWKHGLVWULFWFRXUWFRPPLWWHGUHYHUVLEOHHUURUE\

-- 2 of 4 --

1R 8QLWHG6WDWHVY/DQJ
UHO\LQJRQIDFWXDOILQGLQJVFRQWDLQHGLQWKH365UDWKHUWKDQ
PDNLQJLWVRZQGHWHUPLQDWLRQRIWKHIDFWV6KHSRLQWVRXWWKDW
5XOHRIWKH)HGHUDO5XOHVRI&ULPLQDO3URFHGXUHSURYLGHV
WKDWDVHQWHQFLQJFRXUW³PXVW²IRUDQ\GLVSXWHGSRUWLRQRIWKH
SUHVHQWHQFHUHSRUWRURWKHUFRQWURYHUWHGPDWWHU²UXOHRQWKH
GLVSXWHRUGHWHUPLQHWKDWDUXOLQJLVXQQHFHVVDU\´)HG
5&ULP3 L % ,Q8QLWHG6WDWHVY3DUURWW)G
WK &LU WKLV FRXUW H[SODLQHG WKDW 5XOH
³SURKLELWVDFRXUWIDFHGZLWKDGLVSXWHRYHUVHQWHQFLQJIDFWRUV
IURPDGRSWLQJWKHIDFWXDOILQGLQJVRIWKHSUHVHQWHQFHUHSRUW
ZLWKRXW PDNLQJ IDFWXDO GHWHUPLQDWLRQV RI LWV RZQ´ ,G DW
$FFRUGLQJWR/DQJDIWHUVKHREMHFWHGWR3DUDJUDSK
RIKHU365WKHGLVWULFWFRXUWFRXOGQRWFRQFOXGHWKDWVKHKDG
DEXVHGDSRVLWLRQRIWUXVWXQOHVVWKHJRYHUQPHQWLQWURGXFHG
HYLGHQFHWRVXSSRUWWKHHQKDQFHPHQW
:HILQGKHUDUJXPHQWXQSHUVXDVLYH,QRXURSLQLRQWKH
DERYHTXRWHGDVVHUWLRQE\/DQJ¶VDWWRUQH\LVQRWVXIILFLHQWWR
JLYHULVHWRD³GLVSXWH´ZLWKLQWKHPHDQLQJRI5XOH6HH
8QLWHG6WDWHVY7UHDGZD\)G WK&LU
³:HFDQILQGQRUHDVRQWRUHTXLUHDGLVWULFWFRXUWWRPDNH
LQGHSHQGHQW ILQGLQJV RXWVLGH WKH 365 ZKHQ WKH IDFWV DUH
XQGLVSXWHG´ :HDJUHHZLWKWKHUHDVRQLQJRIWKH6HYHQWK
&LUFXLWWKDW
>D@GHIHQGDQWFDQQRWVKRZWKDWD365LVLQDFFXUDWHE\
VLPSO\GHQ\LQJWKH365¶VWUXWK,QVWHDGEH\RQGVXFKD
EDUHGHQLDOKHPXVWSURGXFHVRPHHYLGHQFHWKDWFDOOVWKH
UHOLDELOLW\ RU FRUUHFWQHVV RI WKH DOOHJHG IDFWV LQWR
TXHVWLRQ,IDGHIHQGDQWPHHWVWKLVEXUGHQRISURGXFWLRQ
WKH JRYHUQPHQW PXVW WKHQ FRQYLQFH WKH FRXUW WKDW WKH
365¶VIDFWVDUHDFWXDOO\WUXH%XWWKHGHIHQGDQWJHWVQR
IUHHULGHKHPXVWSURGXFHPRUHWKDQDEDUHGHQLDORUWKH
MXGJHPD\UHO\HQWLUHO\RQWKH365
8QLWHG6WDWHVY0XVWUHDG)G WK&LU
FLWDWLRQVDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG 2XURZQ
FRXUWLQWKHXQSXEOLVKHGGHFLVLRQRI8QLWHG6WDWHVY'RODQ
1R :/ WK &LU 2FW
UHDFKHGWKHVDPHFRQFOXVLRQ³>$@GHIHQGDQWZKRFKDOOHQJHV
8QLWHG6WDWHVY/DQJ 1R
IDFWXDODOOHJDWLRQVLQWKH 365 >SUHVHQWHQFHUHSRUW@KDVWKH
EXUGHQRISURGXFLQJVRPHHYLGHQFHEH\RQGDEDUHGHQLDOWKDW
FDOOV WKH UHOLDELOLW\ RU FRUUHFWQHVV RI WKH DOOHJHG IDFWV LQWR
TXHVWLRQ´,GDW DOWHUDWLRQVLQRULJLQDO
1RWKLQJLQ3DUURWWLVWRWKHFRQWUDU\/DQJLVFRUUHFWWKDW
WKHGHIHQGDQWLQ3DUURWW³FRQWHQGHGJHQHUDOO\WKDWWKHUHZDV
QRHYLGHQFHWRVXSSRUW´WKHHQKDQFHPHQWDWLVVXH)G
DWZLWKRXWKLPVHOISURGXFLQJDQ\HYLGHQFHWRFDOOWKH
UHOLDELOLW\ RU FRUUHFWQHVV RI WKH 365¶V IDFWV LQWR TXHVWLRQ
7KLVFRXUWVWDWHGWKDW³WKH'LVWULFW&RXUWHUUHGE\IDLOLQJWR
PDNHLQGHSHQGHQWIDFWXDOILQGLQJVVXIILFLHQWWRVXSSRUWWKH
HQKDQFHPHQW´,GDW,WWKHUHIRUHYDFDWHGWKH
GLVWULFWFRXUW¶VLPSRVLWLRQRIWKHHQKDQFHPHQWDQGUHPDQGHG
IRUUHFRQVLGHUDWLRQ7KHUHDVRQKRZHYHUWKDW WKHGLVWULFW
FRXUWHUUHGLQUHO\LQJRQWKH365LQ3DUURWWZDVQRWWKDWWKH
GHIHQGDQWKDGFDOOHGWKHUHOLDELOLW\RUFRUUHFWQHVVRIDQ\IDFW
LQWKH365LQWRTXHVWLRQ5DWKHUWKLVFRXUWGHFLGHGWKDWWKH
HQKDQFHPHQW UHTXLUHG WKH H[LVWHQFH RI D FUXFLDO IDFW
XQPHQWLRQHGE\WKH365DWDOO,GDW ³7KHSUHVHQWHQFH
UHSRUW DGRSWHG E\ >WKH GLVWULFW FRXUW@ LQ VXSSRUW RI WKH
HQKDQFHPHQW>@LVVLOHQWRQWKHLVVXH´ 5HPDQGZDVWKHUHIRUH
QHFHVVDU\WRDVFHUWDLQLQWKHILUVWLQVWDQFHZKHWKHUWKDWIDFW
H[LVWHG3DUURWWWKXVGRHVQRWHVWDEOLVKDEURDGUXOHWKDWDQ\
³EDUHERQHV´REMHFWLRQWRWKH365UHTXLUHVWKHGLVWULFWFRXUW
WRWDNHDGGLWLRQDOHYLGHQFH
,QWKHLQVWDQWFDVH/DQJIDLOHGWRSURGXFHDQ\HYLGHQFHWR
VXSSRUWKHUDUJXPHQWWKDWVKHKDGQRWDEXVHGDSRVLWLRQRI
WUXVW 6KH GLG QRW IRU H[DPSOH SURYLGH DQ DIILGDYLW
FRQWUDGLFWLQJWKH365¶VILQGLQJVWKDWVKH³ZDVVXEMHFWHGWR
VLJQLILFDQWO\OHVVVXSHUYLVLRQEDVHGRQKHUHVWDEOLVKHGWUXVW
DQGVSHFLDOL]HGSRVLWLRQ´RUWKDWKHU³ERVVZDVQRWUHTXLUHG
WR RYHUVHH KHU WUDQVDFWLRQV´ 1RU GLG VKH VR WHVWLI\ DW WKH
VHQWHQFLQJKHDULQJ&I7UHDGZD\)GDW DIILUPLQJ
WKHGLVWULFWFRXUW¶VXVHRIWKH365WRGHWHUPLQHWKHTXDQWLW\RI
GUXJVIRUZKLFKWKHGHIHQGDQWZDVUHVSRQVLEOHQRWLQJWKDWWKH
GHIHQGDQW ³FRXOG KDYH RIIHUHG HYLGHQFH WKDW KH VKRXOG EH
DFFRXQWDEOHIRUDVPDOOHUDPRXQW´

-- 3 of 4 --

1R 8QLWHG6WDWHVY/DQJ
,QVWHDG VKH GLG QR PRUH WKDQ SUHVHQW KHU DWWRUQH\¶V
XQVXSSRUWHGOHWWHUFRQWHVWLQJDPDWHULDOIDFWLQWKHRULJLQDO
365DQGGHQ\LQJWKHDSSOLFDELOLW\RI†%8QGHUWKHVH
FLUFXPVWDQFHV WKH GLVWULFW FRXUW ZDV QRW UHTXLUHG WR WDNH
DGGLWLRQDO HYLGHQFH DQG FRXOG SURSHUO\ UHO\ RQ WKH IDFWV
IRXQG LQ WKH UHYLVHG 365 WR HYDOXDWH WKH SURSULHW\ RI WKH
HQKDQFHPHQW6HH8QLWHG6WDWHVY:LDQW)G
WK&LU KROGLQJWKDWWKHGLVWULFWFRXUWGLGQRWHUULQPDNLQJ
DILQGLQJRQWKHEDVLVRIWKH365ZLWKRXWWDNLQJDGGLWLRQDO
HYLGHQFHZKHUH³>D@OWKRXJK>WKHGHIHQGDQW@ZHDNO\UHLWHUDWHG
KLV SRVLWLRQ WKDW WKH UHGXFWLRQ LQ GRQDWLRQV ZDV PHUHO\
VSHFXODWLYHKHRIIHUHGQRUHDVRQZKDWVRHYHUWRFRQWUDGLFWWKH
HYLGHQFHLQWKHSUHVHQWHQFHUHSRUWDQGWKHVHQWHQFLQJMXGJH
IRXQGLWFUHGLEOH´ FHUWGHQLHG6&W
/DQJ DUJXHV DOWHUQDWLYHO\ WKDW RQ WKH PHULWV WKH
HQKDQFHPHQWVKRXOGQRWKDYHEHHQDSSOLHGLQKHUFDVH:H
UHYLHZWKHGLVWULFWFRXUW¶VDSSOLFDWLRQRI†%XQGHUWKH
³FOHDUO\HUURQHRXV´VWDQGDUGZKHUHDVKHUHLWLVIDFWERXQG
%XIRUGY8QLWHG6WDWHV86 DIILUPLQJWKH
XVHRIDGHIHUHQWLDOVWDQGDUGRIUHYLHZWRWKHGLVWULFWFRXUW¶V
IDFWERXQGDSSOLFDWLRQRIWKH6HQWHQFLQJ*XLGHOLQHV 8QLWHG
6WDWHVY-DFNVRQ5DQGROSK)G WK&LU
KROGLQJWKDWZKHUHWKHGLVWULFWFRXUW¶VDSSOLFDWLRQRI
WKH6HQWHQFLQJ*XLGHOLQHVLVIDFWERXQGERWKIDFWXDOILQGLQJV
DQGDSSOLFDWLRQRIWKH*XLGHOLQHVWRWKRVHIDFWVVKRXOGEHVHW
DVLGH RQO\ LI WKH\ DUH FOHDUO\ HUURQHRXV %XW VHH 8QLWHG
6WDWHVY*LOOLDP)G WK&LU FLWLQJ
LQGLFWDSUH%XIRUGSUHFHGHQWIRUWKHSURSRVLWLRQWKDW³>Z@H
UHYLHZ GH QRYR WKH GLVWULFW FRXUW¶V GHWHUPLQDWLRQ WKDW D
GHIHQGDQWRFFXSLHGDSRVLWLRQRIWUXVWIRUWKHSXUSRVHVRIWKH
6HQWHQFLQJ*XLGHOLQHV´
7KHDSSOLFDWLRQQRWHVIRU†%SURYLGHLQSHUWLQHQWSDUW
DVIROORZV
³3XEOLFRUSULYDWHWUXVW´UHIHUVWRDSRVLWLRQRISXEOLFRU
SULYDWHWUXVWFKDUDFWHUL]HGE\SURIHVVLRQDORUPDQDJHULDO
GLVFUHWLRQ LHVXEVWDQWLDOGLVFUHWLRQDU\MXGJPHQWWKDWLV
RUGLQDULO\ JLYHQ FRQVLGHUDEOH GHIHUHQFH 3HUVRQV
8QLWHG6WDWHVY/DQJ 1R
KROGLQJ VXFK SRVLWLRQV RUGLQDULO\ DUH VXEMHFW WR
VLJQLILFDQWO\ OHVV VXSHUYLVLRQ WKDQ HPSOR\HHV ZKRVH
UHVSRQVLELOLWLHVDUHSULPDULO\QRQGLVFUHWLRQDU\LQQDWXUH
)RUWKLVDGMXVWPHQWWRDSSO\WKHSRVLWLRQRISXEOLFRU
SULYDWHWUXVWPXVWKDYHFRQWULEXWHGLQVRPHVLJQLILFDQW
ZD\WRIDFLOLWDWLQJWKHFRPPLVVLRQRUFRQFHDOPHQWRIWKH
RIIHQVH HJE\PDNLQJWKHGHWHFWLRQRIWKHRIIHQVHRU
WKH GHIHQGDQW¶V UHVSRQVLELOLW\ IRU WKH RIIHQVH PRUH
GLIILFXOW
866HQWHQFLQJ*XLGHOLQHV0DQXDO†%FPWQ$V
ERWK WKH GLVWULFW FRXUW DQG WKH 365 QRWHG /DQJ¶V SRVLWLRQ
DOORZHGKHUWKHGLVFUHWLRQWRKLUHLQGHSHQGHQWFRPSDQLHVDQG
WRVXEPLWWKHLULQYRLFHVDQGQRRQHDW+0,ZDVUHTXLUHGWR
RYHUVHH KHU WUDQVDFWLRQV 7KHVH IDFWRUV XQGRXEWHGO\
IDFLOLWDWHGERWKWKHFRPPLVVLRQDQGWKHFRQFHDOPHQWRIWKH
RIIHQVH:HWKHUHIRUHILQGQRHUURU²FOHDURURWKHUZLVH²LQ
WKH GLVWULFW FRXUW¶V GHFLVLRQ WR DSSO\ WKH WZROHYHO
HQKDQFHPHQWRI†%LQWKLVFDVH
,,,&21&/86,21
)RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH
MXGJPHQWRIWKHGLVWULFWFRXUW

-- 4 of 4 --