7KH +RQRUDEOH 'DYLG ' 'RZG -U 8QLWHG 6WDWHV 'LVWULFW -XGJH IRUWKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ5(&200(1'(' )25 )8//7(;7 38%/,&$7,213XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU)LOH 1DPH DS	

			



28,6($66,'<	
.=22%(/$/71&	
 !"
#$%	&'$& $()  "& #'$& $(*$("$+#' $,-./0 #%'$& $(1)%+ +)%2	!0 3--'($%%#%$%2(0 ---4 25'6#%*$ ()$1)%+&7'8''$& $(1)%+-


  1&")   #    94
:
; < = *$("$+#   #&$!"<  > '
5
	 8
? @' $*$("$+#   
 	A#;"#94
:
;< =*$("$+#   #&  $!"<  > '$# 5"(") $# '
5
	 8
? @ ' $*$("$+# 5'6$ ()$ 1)%+  @$#$&#& )$&&&$%<"%$& $(() B&&)!! <C)%+!# %#%#=D0	
#(EF	
GH#$#$&B($!""<   (# ()< #$%0#$&)#%	
B&&A #(<#1) $&%$($#$&0&%#%$A &$<($$D#&"$	
B&  !$#$# # && " +)  ) $!!<& >"   F &%G >$ ($A &A #( <"$(<%$#&F &G&>&2& $&   !## & $# $#$$% 0< "(!#<%)(=> =#(#!$( %)($#$#" > =  ( " !<B& $#0$$<    !&$&( $<"%)$&"&$$#$#(!$0$$<(  (=  > = !< (()  & " &)  +#$D$#C00$&"!#(# $33,	
&%$&&&& +$
#(>$"  !$& "  +$ >)% !< &)0&#$<  "!<&	
@$#$& 	
!<&>"((%  &   &)0&#$< &$!$  &$$#& >$" +$(#$#)> =  +$"<+"


 !F(G%� $#+"!>$"$#"	
&A #($(<4()& " $# #+)+  " &A #( # $&)#!0$+))&" $&##%(#&$% I $#&$(A$%#( &#%0<"$#$&#%%#%#$#"$&(&-J .%  .,J E#$#+ " %  () & !< = I $#&$(A$%#(#<$#%()!#& !0$+))&H" %$& $(   < + #% " %#%#B& !$# &)!! <C)%+!##%>"  $ !"C)%+!#"%$& $(() 


.7KHFRQGLWLRQV RI 3LQDELOLW\ WR SHUIRUP VDWLVIDFWRULO\ ́ DQG3LQFRPSDWLELOLW\ ́ DUH QRW DW LVVXH KHUH)#% " !&	
B&&A #(#"$  #&  !!<!#>$"	
 +$>&F &G#$$#+"!&A #(0#$& !	
"<($!0 ("(# ( 	
B&$) !="&<!#&" %$& $( ()  + #% 	
B& !$#   &)!! <C)%+!#"%$#+""$##%)#!0$+))&#+)+ " # %$% # #$ $#$&  &A #( 0#$&0()&"$  #& !<!# +$>&#%) F(=  > =G   # F(#!$( %)($# $# "> = (G&&($$(< K)$ %0<" !&"#@$#$& $& > $&&)& # 2 EH >""  "&A #( # $&  >  0#$ # )#%  "!<!# $ !# 
#(! 	() $< ( -3 
	L  $++ $#+ %  (!!#> " "#&(# (> $#($&7E-H>"" " $&+#)$#$&&)! $ (&"  $#  $#"(# (" %$& $( ()  %$% # %($% >""    # "&A #( # $&  !< >  0#$ # )#%
	 &#$#+ " F+#  )&G  (# ($#  $# < + %&&  "$& $& # $! ($&&!#8"#$#  $#+
	#& % () &<F+#  )&G(# (>& " % (!!#>
 
!""#
--.%,-,-EJ"$ -H7"
$.%JEJ"$ 33H"% (!!#>!< % > )# & >  $#($& 0) & > $& #(# $#+ )" $<  
#  $#+  ##
	 (# (($! K)$ & %  () &  = #<  & > $#($&#%"&#"$#+%>$"% (!!#>%" &&  '# .M 
	 JM E3.H  4()& ")#%!# +  !> = %$ &   
	 #% ##M



	#&"K)&$#>"" "	
&A #(<0#$$& #
	#&")%0%($%%
	%$#&#F!<> 0#$#G&F#<#&0$&"% !$#$#%0<#!<  ") & A$%$#+ $& $($#&EH0#$&$#"A#)#!<!# E4H#<0#$%&( $0%$#&($#JE(H"$&$G-3
	L-EHA #(#& $#()%%$#"%$#$$#-3
	L-EHE4H(()"*",J.%MMM3EJ"$ 33JH	($#.-E(H"0 *#+!#$#& ( EF*GH -3 
	 L JE(H  & &A #( 0#$& #% L -EHE4H $#(  & " #( $# 
	B& %$#$$#  F!< > 0#$ #G  %%$$#< " 	) ! )  "&&($$(< #% " F#&  < !<& &A #(0#$& >"$("   <0 )#  !$#$# !<!#   !< >  0#$ #&G*(*"(M3
	,JE33H#"&&"$&($ ()$"&"%"#&A #(<#& 
	#&8"A=%"#) "#%$&$#+)$&"
	 !##
	#&+,"*""MJ.%-,EJ"$ 33HEF""! =#
	0#$#$&"$ K)$ &N##+$#+%!$#$& $A + !!"!< B&0$+$#BGH EK)$#+)" !-   
  M-
	-E3,HH"%+ %$&( $#$#%0<"!< A %$& $0)$#0#$&$&#$! #( $#%($%$#+>"" &A #(#$&#
	 #    I! #& $# >"$(" 0#$&   % !$#%   >"$(" $#AA FO&P$!   !("#$(% !$#$#&G "A 0# )#% #  0 
	 #&("","*""...%J.JJ..3EJ"$ 33MH#"" "#%$% !$#0#$&"!<  !)& F#<D (" !<B&  $()($ ()!&#(& $# $+"  "   $ ( $ $G "&A #( # $&  00< # 
	 #   #"$! #( $&>"" "%$A <0#$&( &#


3 !" " $# !#$#+  F(#!$( %)($# $# "> = (G$#"$& $() (#I%&##(!&& #&   &$$#   &)((&&  (  $# >"  "!<& (% # "   )#!<!#  " " &F %)($#$#> = (G$&!&(!!#<)#% &%(A  &$)$#&$# >"$("    (#!$( )=   #!<  (&<&$#&" ",3	)J3J- E8'*$("33H E"%$#+"# A$%$#+ &A #( <   F %)($# $# > =  (GF&$!<%$%#(#!"(&0)&$#&&#"A$0$$<&A #(<GH.3-%,.-EJ"$ 33H7
 
3J,-%J3,-E&$ 33-HE#$#+"F>"A "I( !$$($#&" "$+"< #)#(% " & N %)($# $#  (B "  !>)%  <0")+"(A  &A #(<) &&" &$#+   %$A$&$#  #"  (!#< )#%($ ()!&#(&$#>"$(""> = ($&%$#+ )+"<(! 0 > =   )+"< (! 0 >+&GH '""
##
"%&/*"(%#
#.3-%MJEJ"$ 3J-HE$#  $#+ " " & F %)($# $#  (G $#  )#$#(#&$)$#I()%"&!< >" !<&$#% &%< !<!#H"  .,- 
	 3M.E3J.H
#"$&(&#(#!$(" %&"$ (%	
%)("#)!0 0  &!<%$#"0)&$#&&$#>"$("$>&#++%"$#$&> #  %)($# $# > = ( 0) "   >"&  #&  	
B&> = ( +$#$	
B& )&  "  ! F(G  " #%  " $& &&$0 ()&&    !## & $# %& # ( !0$+)$<$#"&A #($(<&"%$& $(() #%F(G  &  F" &   $= =$#%G  4/$&.B6$:',&7,21$5<.EJ"%33H"" && (%$#+" !$#"$&(#I &)#$=$#$&B&$)$#&""


%$#+  "$&  $()  #B& %$#$$#  F &G&) &$#$&B($!& &A #(0#$&8+ %!" !"$#!#$#+F(=> =G%&##(!&&$#$&B &$)$#"$#$&  &#<%$#+"&!   &)0&#$< &$!$  > = & "< %$%   0 "&&&" #& !<!# ! +$>&# ()&%0< (=> = 	
0)" 0<" & 	
B& &&& +$"$&(!!#&#& %$#+$&(#&$&#>$""(!!#&#&> #% &$&  ($ ()$& "A $% $# "  (&& ,"("
#
,3	)M-.E	'"$HE"%$#+"!<&>"(#$#)% (! 0C0 >$"  &)((&&  (!#<"%#0#F !##< !$#% $%0<"!#<%)(=> =GH.3--%,3EJ"$ 33H7!" &+ . " -M .% -,- E" $  33MHE"%$#+"!<&&)((&& (  $#> #$%    F(=  > =G    #&   ># &"$H70"+,
)"3M-%,3 E-%$ 33-HE&!H7$&# 
"#,M-%MME"$  33H E"%$#+ "  ("#+ $# !<   ! #% (# ( #" ()&%!<&#F(=> =GH@$#$&$#)"(( %$#+"&($$(#+)+ " 	
 # F(=  > =G !< 0 %) F  +#$D$#(G#%""$&&&&()%0(#&$% %#+)&  +#$D$#
$& )""$# !&"#$#%$("F(=> =G# $& !(    +#$D$# &!"$#+#+)&& "&$&"(& "&	
!<&>"> # %!<!#>$" +$>A " $&#(=> =&"&$#$&)#% #<(!!#&#&)#% &#%$#+"" &


7KH FRUH SURYLVLRQV RI $16,¶V WHUPLQDWLRQ DQG VHYHUDQFH SD\SROLF\ZHUHDUWLFXODWHG LQ D  GRFXPHQW HQWLWOHG 3&RUSRUDWH 7HUPLQDWLRQ3ROLF\IRU 6DODULHG (PSOR\HHV ́ -$ DW  7KLV GRFXPHQW GHILQHV3UHOHDVH ́ ± WKH FRUH RI WKH GLVSXWH LQ WKLV FDVH ± DQG SURYLGHV EHQHILWVEDVHG RQ WKH GXUDWLRQ RI WKH HPSOR\HH¶V WHQXUH ZLWK WKH FRPSDQ\ ,Q DPHPR GDWHG)HEUXDU\   LQ DQWLFLSDWLRQ RI WKH GHDO ZLWK &DUJLOO$16, HODERUDWHG RQ LWV WHUPLQDWLRQ SROLF\ 3IRU FODULILFDWLRQ SXUSRVHV ́-$ DW  7KLV  PHPR OLVWHG VLJQLILFDQWO\ KLJKHU EHQHILWV IRUPRVW HPSOR\HHV DV ZHOO DV D PRUH FRPSOLFDWHG SODQ IRU WKH H[WHQVLRQ RIHPSOR\HH EHQHILWV DQG WKH SURYLVLRQ RI FDUHHU WUDQVLWLRQVHUYLFHV&RQWUDU\ WR SODLQWLIIV¶ DVVHUWLRQ WKH EHQHILWV OLVWHG LQ WKLV PHPR DSSOLHGWR DQ\ HPSOR\HH HOLJLEOH IRU EHQHILWV XQGHU WKH  SROLF\ DQG ZDV QRWOLPLWHG WR RQO\ WKRVH $16, HPSOR\HHV QRW RIIHUHG HPSOR\PHQW E\ &DUJLOO7KH GLVWULFW FRXUW DVVXPHG WKDW $16,¶V VHYHUDQFH SROLF\ FRPSULVHG ERWKGRFXPHQWV SODLQWLIIV FRQWHQG RQ DSSHDO WKDW RQO\ WKH GRFXPHQWDSSOLHV WR WKHP&RQVWUXLQJ WKH IDFWV LQ D OLJKW PRVW IDYRUDEOH WR WKH SODLQWLIIV WKH PHPR LV QRW GLVWLQFW IURP $16,¶V JHQHUDO VHYHUDQFH SD\ SODQ3ODLQWLIIV GR QRW DOOHJH DQG WKH IDFWV GR QRW LQGLFDWH WKDW $16, DGRSWHGHQKDQFHG EHQHILWV DV D VWUDWHJLF PDQHXYHU WR HQVXUH D VWURQJHU SRVLWLRQ RQWKH (5,6$ TXHVWLRQ LQ DQWLFLSDWLRQ RI WKLV OLWLJDWLRQ $16, VLPSO\ ZLVKHGWR 3VZHHWHQ WKH GHDO ́ DV SODLQWLIIV SXW LW IRU HPSOR\HHV HOLJLEOH IRUVHYHUDQFH EHQHILWV DIWHU WKH &DUJLOO GHDO 3ODLQWLIIV FLWH QR ODZ WKDW ZRXOGSURKLELW $16, IURP FODULI\LQJWKHLU VHYHUDQFH EHQHILWV SROLF\ LQ WKLVPDQQHU#+$#+ %!#% # !<  &&&   # !< 0 #
	#$"!< F&&)!& &#&$0$$<<0#$&# +) 0&$&#%")&(& $%$(%!#%& # $& &&& " (   #%   $##($( %$#$##%(# G)"!-M-
	-
#(()"*",J.%MMEJ"$ 33JHI! > "% "  %B& &A #( < # >"$("$#()%% (#$#)$#!%$(0#$& &&$# !<!#&&$&#(#% $ !#F+ >$#G A$&$#&>&#
	#M4<(# &$#("">#% " #$! )! &)! %$& $0)$#  &A #(0#$&$&#(#&$&#>$"
	B&%$#$$#> 0#$#...%J.3"	
&A #(# A&%+ %$&( $# $%$(%!#%&#&&&#%#%!$#$& $A0) %#"
	B&%$#$$#(#!&" $+$#&A #(J


3ODLQWLIIV FODLP WKDW EHFDXVH WKLV SURYLVLRQ LVFRQWDLQHG LQ D3UHWLUHPHQW SODQ ́ VXEKHDGLQJ LW LV QRW SDUW RI WKH VHYHUDQFH SODQ DW LVVXHLQ WKLV FDVH +RZHYHU WKH SURYLVLRQ LV SDUW RI WKH $16, FRUSRUDWHGRFXPHQW3&RUSRUDWH 7HUPLQDWLRQ 3ROLF\ IRU 6DODULHG (PSOR\HHV ́ZKLFKDV D ZKROH JRYHUQV WHUPLQDWLRQ DQG VHYHUDQFH EHQHILWV3ODLQWLIIV DOVR DUJXH WKDW $16, GLG QRW PDNH UHTXLUHG (5,6$ ILOLQJVRU VDWLVI\ (5,6$ GLVFORVXUH UHTXLUHPHQWV DQG WKHUHIRUH WKH\ GLG QRW WUHDWWKH VHYHUDQFH SODQ DV DQ (5,6$ SODQ6HH6SUDJXH Y *HQHUDO 0RWRUV&RUS  )G   WK &LU  GHWDLOLQJ (5,6$¶VSURFHGXUDO UHTXLUHPHQWV 3ODLQWLIIV FLWH QR FDVH ODZ VXSSRUWLQJ WKHSURSRVLWLRQ WKDQ DQ HPSOR\HU¶V VXEMHFWLYH XQGHUVWDQGLQJ RI WKH VWDWXV RILWV WHUPLQDWLRQ EHQHILWV SODQ LV D UHOHYDQW FULWHULD LQ GHWHUPLQLQJ ZKHWKHULW TXDOLILHV DV DQ (5,6$ SODQ 0RUHRYHU SODLQWLIIV SURYLGH QR HYLGHQFHLQ WKH UHFRUG WR VXSSRUW WKHLUDVVHUWLRQWKDW $16, GLG QRW FRPSO\ ZLWK(5,6$¶V SURFHGXUDO UHTXLUHPHQWV$(<+# < A$%% )!&)!<!#0&%#"!<B& #)  >$" 	
 F)#&& #  # #+!#$& A%0<"(!#<GE1M.H&!#%%$#33,&!!<&>  !$%("&0># )! &)! <!# #%  ><  & <(#$#)$# $%E1.-H
 # #+!#&  $#&!# <!#& >   A% (#$#)$# 0#$&"%0#+$%"%$&( $#	
E1 MMH  ")+" 0#$& >  +# <  !)$( "(!#< &$%#"%%$&( $# A + !)#$#&!(&&!<&>$" $A ! < && A$(()%("&0>## !&A #(<!##%& $&!#"<<!#&"0+# $ !#+E1  MH  " !< "%  &)0!$  > $#$($# $#  %   ($A "$& $ !# 0#$")+"$$&#( >"" 	
 $#%%$&( $#%#< #< $($#   &% !<& >  & !$%I#%"$ !%$(%##%$$#&) #(0#$&#%> #$%(   #&$$#& A$(&E1MM.-H#">""$&&A #(0#$&&("!%$&<&  %+   %!$#$& $A (!I$< " ! (&< &!0&#&>"$(">"A$#()%%$#
	B&&(


,$OWKRXJK SODLQWLIIV¶ FDXVH RI DFWLRQ ZDV RULJLQDOO\ ILOHG DV D VWDWHODZ FRQWUDFWV FODLP ZH PD\ FRQVWUXH LW DV D FODLP IRU EHQHILWV XQGHU(5,6$  D% ZLWKRXW PDWHULDOO\ DOWHULQJ WKH QDWXUH RI WKH LVVXHVEHIRUH XV LQ RUGHU WR DYRLG DQ\ SUHHPSWLRQ LVVXHV 7KDW VHFWLRQ SURYLGHVWKDW 3D FLYLO DFWLRQ PD\ EH EURXJKW    E\ DSDUWLFLSDQW RU EHQHILFLDU\WR UHFRYHU EHQHILWV GXH WR KLP XQGHU WKH WHUPV RI KLV SODQ WR HQIRUFH KLVULJKWV XQGHU WKH WHUPV RI WKH SODQ RU WR FODULI\ KLV ULJKWV WR IXWXUH EHQHILWVXQGHU WKH WHUPV RI WKH SODQ ́  86&  D%#$+""&(&>"%"	
B&&A #(#$&#
	##%""%$& $(() %$%# $#<$#+ %  (!!# >  (%#&  $#   "(# ()#+)+#% )JE(H"% )&$A$@ (%) &)!! <C)%+!#$&  $>"#" $&#+#)$#$&&)! $(  $#%"!A$#+ <$&#$%C)%+!#&! >*(% 1( & " M, 
	 ,M , E3JH  "K)&$#>"" "$&
	+A #%&A #(0#$#B&(# ()#+)+$&!0$+))&$&K)&$#>K)$ $#+ A$>2#(#"-J.%.J.,JEJ"$ 33MH&"%$& $(() #%"&K)&$#$#"$&(&$&>""  $#$&B  #&   !<!#  ! 	
  +$ >&  F &G &%$#%0<" 	
 &A #(#  
#  %   K)$< &  F &G $# "$& (#I$#$&!)&"A0# !##<& %%)F(=> =G#F(#!$( %)($#$#"> = (G &!"  &#(A %0<"#B&)&" !F(G) &&")%$#  
	# A$&$#&F(( %$#+"$ $#!#$#+$# # %$# < #%)  &#&G"  
 $    .%  J EJ" $ 33H
#<$#+"$&F$#!#$#+#<&$&G"() F!)&+$A (")#!0$+))& !& #
	#G$*"$,..%.,-.,3EJ"$ 33JH"%$& $(()  )#%"#)&$0