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
32/$5,6 $03+,7+($7(5 ; &21&(576 ,1& 3ODLQWLII$SSHOODQW 1R Y ! &,7< 2) :(67(59,//(HWDO 'HIHQGDQWV$SSHOOHHV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1RnsDPHV/*UDKDP'LVWULFWsXGJH $UJXHG0D\ 'HFLGHGDQG)LOHG2FWREHU %HIRUHs21(6DQG'$8*+75(<&LUFXLWsXGJHV (&212086'LVWULFWsXGJH
7KH +RQRUDEOH 3HWHU & (FRQRPXV 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
3RODULV$PSKLWKHDWHUY 1R &LW\RI:HVWHUYLOOHHWDO
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' &UDLJ 3LQNXV /2:( &5$< 67((/( '$5.2 ,QGLDQDSROLV ,QGLDQD IRU $SSHOODQW 6WHYHQ ) 3IODXP0&'(50277:,// (0(5<&KLFDJR,OOLQRLV (OL]DEHWK / 6FKXVWHU 2)),&( 2) 7+( $77251(< *(1(5$/ 2) 2+,2 &ROXPEXV 2KLR IRU $SSHOOHHV 21 %5,() &UDLJ 3LQNXV /2:( &5$< 67((/( '$5.2,QGLDQDSROLV,QGLDQD%HQVRQ$:ROPDQ6XVDQ% *HOOPDQ :2/0$1 *(16+$)7 *(//0$1 &ROXPEXV 2KLR IRU $SSHOODQW 6WHYHQ ) 3IODXP 0&'(50277 :,// (0(5< &KLFDJR ,OOLQRLV (OL]DEHWK/6FKXVWHU$UWKXUsDPHV0DU]LDOHsU2)),&( 2) 7+( $77251(< *(1(5$/ 2) 2+,2 &ROXPEXV 2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 1$7+$1,(/ 5 s21(6 &LUFXLW sXGJH 3RODULV $PSKLWKHDWHU&RQFHUWV,QFm3RODULVlDSSHDOVWKHMXGJPHQW RI'LVWULFWsXGJH*UDKDPWKDWWKHRUGLQDQFHHQDFWHGE\WKH &LW\ RI :HVWHUYLOOH 2KLR m:HVWHUYLOOHl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
GUDZQVWDQGDUGVRIWKHH[DFWW\SHDWZRUNLQWKH:HVWHUYLOOH ,%$&.*5281' RUGLQDQFH,Q6DLDY1HZQ@RLVHFDQEHUHJXODWHGE\ UHJXODWLQJGHFLEHOVl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j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m25&l6HFWLRQ%7KH2KLROHJLVODWXUHHQDFWHG WKLV VWDWXWH LQ WR DXWKRUL]H DGMDFHQW PXQLFLSDOLWLHV WR 3RODULV$PSKLWKHDWHUY 1R 1R 3RODULV$PSKLWKHDWHUY &LW\RI:HVWHUYLOOHHWDO &LW\RI:HVWHUYLOOHHWDO
SHUPLW WKH DSSOLFDWLRQ DQG HQIRUFHPHQW RI WKHLU QRLVH SXEOLFDWLRQVGLVWULEXWLRQRIOLWHUDWXUHµRIDQ\NLQGjLQD RUGLQDQFHVWRQRLVHHPDQDWLQJIURPWKHRWKHUFLW\,Q FLW\RIl :HVWHUYLOOHDQG&ROXPEXVHQWHUHGLQWRVXFKDQDJUHHPHQWIRU WKHUHFLSURFDOHQIRUFHPHQWRIQRLVHDJUHHPHQWV ,GDW%\FRQWUDVWWKH:HVWHUYLOOHQRLVHRUGLQDQFH OHDYHVHQWLUHO\XQWRXFKHGWKHVXEVWDQFHRIZKDWSHUIRUPHUV 7KHRUGLQDQFHjVUHJXODWRU\DSSURDFKLVWRSURKLELWEH\RQG FKRRVHWRVD\7KHUHIRUHZHFRQFOXGHWKDWWKHFKLHIFRQFHUQ FHUWDLQOHYHOVPHDVXUHGLQGHFLEHOVVRXQGYROXPHSURGXFHG ZKLFKDQLPDWHVWKHGRFWULQHRISULRUUHVWUDLQWoWKHIHDURI E\HOHFWURQLFDPSOLI\LQJHTXLSPHQW7KHRUGLQDQFHVSHFLILHV FHQVRUVKLS DQG WKRXJKW FRQWURO o LV QRW UDLVHG E\ WKH WKDWWKHGHFLEHOOLPLWVDUHLQHIIHFWRQO\GXULQJWKHHYHQLQJ RUGLQDQFHjVFRQWHQWQHXWUDOUHJXODWLRQRIQRLVH DQGQLJKWWLPHKRXUV2ISDUWLFXODUQRWHLQWKLVDSSHDOLVWKDW DPRQJ RWKHU UHPHGLHV WKH FLW\ LV DXWKRUL]HG WR WDNH OHJDO :HKDVWHQWRDGGKRZHYHUWKDWODFNRIFRQWHQWQHXWUDOLW\ DFWLRQWRHQMRLQUHSHDWHGYLRODWLRQVRIWKHRUGLQDQFHjVGHFLEHO LV QRW WKH RQO\ IHDWXUH WKDW LGHQWLILHV D V\VWHP RI SULRU OLPLWV3RODULVFODLPVWKDWWKLVSURYLVLRQRIWKHRUGLQDQFH UHVWUDLQW $ FRQWHQWQHXWUDO UHJXODWLRQ WKDW m>
Free access — add to your briefcase to read the full text and ask questions with AI
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
32/$5,6 $03+,7+($7(5 ; &21&(576 ,1& 3ODLQWLII$SSHOODQW 1R Y ! &,7< 2) :(67(59,//(HWDO 'HIHQGDQWV$SSHOOHHV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1RnsDPHV/*UDKDP'LVWULFWsXGJH $UJXHG0D\ 'HFLGHGDQG)LOHG2FWREHU %HIRUHs21(6DQG'$8*+75(<&LUFXLWsXGJHV (&212086'LVWULFWsXGJH
7KH +RQRUDEOH 3HWHU & (FRQRPXV 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
3RODULV$PSKLWKHDWHUY 1R &LW\RI:HVWHUYLOOHHWDO
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' &UDLJ 3LQNXV /2:( &5$< 67((/( '$5.2 ,QGLDQDSROLV ,QGLDQD IRU $SSHOODQW 6WHYHQ ) 3IODXP0&'(50277:,// (0(5<&KLFDJR,OOLQRLV (OL]DEHWK / 6FKXVWHU 2)),&( 2) 7+( $77251(< *(1(5$/ 2) 2+,2 &ROXPEXV 2KLR IRU $SSHOOHHV 21 %5,() &UDLJ 3LQNXV /2:( &5$< 67((/( '$5.2,QGLDQDSROLV,QGLDQD%HQVRQ$:ROPDQ6XVDQ% *HOOPDQ :2/0$1 *(16+$)7 *(//0$1 &ROXPEXV 2KLR IRU $SSHOODQW 6WHYHQ ) 3IODXP 0&'(50277 :,// (0(5< &KLFDJR ,OOLQRLV (OL]DEHWK/6FKXVWHU$UWKXUsDPHV0DU]LDOHsU2)),&( 2) 7+( $77251(< *(1(5$/ 2) 2+,2 &ROXPEXV 2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 1$7+$1,(/ 5 s21(6 &LUFXLW sXGJH 3RODULV $PSKLWKHDWHU&RQFHUWV,QFm3RODULVlDSSHDOVWKHMXGJPHQW RI'LVWULFWsXGJH*UDKDPWKDWWKHRUGLQDQFHHQDFWHGE\WKH &LW\ RI :HVWHUYLOOH 2KLR m:HVWHUYLOOHl WR FRQWURO WKH LPSDFWRIH[FHVVLYHQRLVHRQUHVLGHQWLDOFRPPXQLWLHVYLRODWHV QRQH RI WKH ULJKWV JXDUDQWHHG 3RODULV XQGHU WKH )HGHUDO RU 2KLR&RQVWLWXWLRQ3RODULVUDLVHVLQWKLVDSSHDOQXPHURXV FRQVWLWXWLRQDOFKDOOHQJHVWRWKHQRLVHRUGLQDQFHEXWPDQ\RI WKHPKDYHEHHQDFNQRZOHGJHGDQGWKRURXJKO\H[KDXVWHGLQ WKH 0HPRUDQGXP 2SLQLRQ RI WKH 'LVWULFW &RXUW :H WKHUHIRUH OLPLW RXU GLVFXVVLRQ KHUH WR WKH FODLP WKDW WKH HQIRUFHPHQWSURYLVLRQRIWKHRUGLQDQFHLVXQHQIRUFHDEOHDVD SULRUUHVWUDLQWRQVSHHFKLQYLRODWLRQRIWKH)LUVW$PHQGPHQW WR WKH 86 &RQVWLWXWLRQ :H FRQFOXGH WKDW 3RODULV PLVFRQVWUXHV WKH QDWXUH RI D SULRU UHVWUDLQW DQG IRU WKH UHDVRQVVHWRXWEHORZZH$)),50 3RODULV$PSKLWKHDWHUY 1R 1R 3RODULV$PSKLWKHDWHUY &LW\RI:HVWHUYLOOHHWDO &LW\RI:HVWHUYLOOHHWDO
GUDZQVWDQGDUGVRIWKHH[DFWW\SHDWZRUNLQWKH:HVWHUYLOOH ,%$&.*5281' RUGLQDQFH,Q6DLDY1HZQ@RLVHFDQEHUHJXODWHGE\ UHJXODWLQJGHFLEHOVl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j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m25&l6HFWLRQ%7KH2KLROHJLVODWXUHHQDFWHG WKLV VWDWXWH LQ WR DXWKRUL]H DGMDFHQW PXQLFLSDOLWLHV WR 3RODULV$PSKLWKHDWHUY 1R 1R 3RODULV$PSKLWKHDWHUY &LW\RI:HVWHUYLOOHHWDO &LW\RI:HVWHUYLOOHHWDO
SHUPLW WKH DSSOLFDWLRQ DQG HQIRUFHPHQW RI WKHLU QRLVH SXEOLFDWLRQVGLVWULEXWLRQRIOLWHUDWXUHµRIDQ\NLQGjLQD RUGLQDQFHVWRQRLVHHPDQDWLQJIURPWKHRWKHUFLW\,Q FLW\RIl :HVWHUYLOOHDQG&ROXPEXVHQWHUHGLQWRVXFKDQDJUHHPHQWIRU WKHUHFLSURFDOHQIRUFHPHQWRIQRLVHDJUHHPHQWV ,GDW%\FRQWUDVWWKH:HVWHUYLOOHQRLVHRUGLQDQFH OHDYHVHQWLUHO\XQWRXFKHGWKHVXEVWDQFHRIZKDWSHUIRUPHUV 7KHRUGLQDQFHjVUHJXODWRU\DSSURDFKLVWRSURKLELWEH\RQG FKRRVHWRVD\7KHUHIRUHZHFRQFOXGHWKDWWKHFKLHIFRQFHUQ FHUWDLQOHYHOVPHDVXUHGLQGHFLEHOVVRXQGYROXPHSURGXFHG ZKLFKDQLPDWHVWKHGRFWULQHRISULRUUHVWUDLQWoWKHIHDURI E\HOHFWURQLFDPSOLI\LQJHTXLSPHQW7KHRUGLQDQFHVSHFLILHV FHQVRUVKLS DQG WKRXJKW FRQWURO o LV QRW UDLVHG E\ WKH WKDWWKHGHFLEHOOLPLWVDUHLQHIIHFWRQO\GXULQJWKHHYHQLQJ RUGLQDQFHjVFRQWHQWQHXWUDOUHJXODWLRQRIQRLVH DQGQLJKWWLPHKRXUV2ISDUWLFXODUQRWHLQWKLVDSSHDOLVWKDW DPRQJ RWKHU UHPHGLHV WKH FLW\ LV DXWKRUL]HG WR WDNH OHJDO :HKDVWHQWRDGGKRZHYHUWKDWODFNRIFRQWHQWQHXWUDOLW\ DFWLRQWRHQMRLQUHSHDWHGYLRODWLRQVRIWKHRUGLQDQFHjVGHFLEHO LV QRW WKH RQO\ IHDWXUH WKDW LGHQWLILHV D V\VWHP RI SULRU OLPLWV3RODULVFODLPVWKDWWKLVSURYLVLRQRIWKHRUGLQDQFH UHVWUDLQW $ FRQWHQWQHXWUDO UHJXODWLRQ WKDW m>SODFHV@ LPSRVHVDSULRUUHVWUDLQWRQVSHHFKLQYLRODWLRQRIWKH)LUVW XQEULGOHGGLVFUHWLRQLQWKHKDQGVRIDJRYHUQPHQWRIILFLDORU $PHQGPHQW7KH'LVWULFW&RXUWUHMHFWHGWKLVDQGHDFKRQHRI DJHQF\ FRQVWLWXWHV D SULRU UHVWUDLQW DQG PD\ UHVXOW LQ WKHVHYHUDORWKHUFRQVWLWXWLRQDOFKDOOHQJHVWKDW3RODULVORGJHG FHQVRUVKLSl&LW\RI/DNHZRRGY3ODLQ'HDOHU3XEOLVKLQJ DJDLQVWWKHQRLVHRUGLQDQFH,QWKLVDSSHDOZHJLYHWKHSULRU &R866&W,Q UHVWUDLQWLVVXHRXUFDUHIXOFRQVLGHUDWLRQ RWKHU ZRUGV ZKHQ D UHJXODWLRQ IDLOV WR SODFH DSSURSULDWH OLPLWVRQWKHGLVFUHWLRQRISXEOLFRIILFLDOVWRDGPLQLVWHUWKH ODZLQDPDQQHUWKDWLVDEXVLYHRIVSHHFKWKHUHVXOWVKRXOGEH QR GLIIHUHQW WKDQ LI WKH ODZ KDG EUD]HQO\ VHW RXW WR GLVFULPLQDWHRQWKHEDVLVRIFRQWHQW$WVWDNHLVWKHULVNWKDW LQWKHDEVHQFHRImQDUURZO\GUDZQUHDVRQDEOHDQGGHILQLWH VWDQGDUGV IRU WKH RIILFLDOV WR IROORZl WKH ODZ LQYLWHV RSSRUWXQLWLHVIRUWKHXQFRQVWLWXWLRQDOVXSSUHVVLRQRIVSHHFK 1LHPRWNRY0DU\ODQG866&W 7KH RUGLQDQFH GHILQHV mHYHQLQJl DV WKH SHULRG IURP SP XQWLO .XQ]Y1HZ
FRQWHQWQHXWUDOLW\7KHHVVHQFHRIWKHSULRUUHVWUDLQWGRFWULQH ,,$1$/<6,6 LVFHQVRUVKLSoDV\VWHPLQZKLFKEXUHDXFUDWVVFUHHQPDWHULDO DQGUHPRYHIURPLWSDUWVWKDWDUHFRQVLGHUHGWRRKDUPIXORU 7KH WHUP mSULRU UHVWUDLQWl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
DPELWRI)LUVW$PHQGPHQWOLEHUW\6HHLGDW6LPLODUO\ WKDWDXWKRUL]HDWHPSRUDU\RUSHUPDQHQWFHVVDWLRQRIXQODZIXO WKH)LIWK&LUFXLWLQ8QLYHUVDO$PXVHPHQW&RY9DQFH DFWLYLWLHVFDQRSHUDWHDVDSULRUUHVWUDLQWZKHQWKH\DOVRERWWOH )GWK&LUDIIjG866&W XSSURWHFWHGVSHHFK KHOGXQFRQVWLWXWLRQDOD7H[DVVWDWXWHZKLFKDXWKRUL]HG VWDWH MXGJHV WR HQMRLQ WKH IXWXUH H[KLELWLRQ RI ILOPV E\ D 7KHFDVHV:HVWHUYLOOHFLWHVGRQRWDVVLVWWKHDUJXPHQWWKDW EXVLQHVVWKDWKDGVKRZQREVFHQHILOPVLQWKHSDVW7KHFRXUW WKHSULRUUHVWUDLQWFODLPLVPRRW6HH(TXDOLW\)RXQGDWLRQRI REVHUYHG WKDW WKH HIIHFW RI FORVLQJ o HYHQ WHPSRUDULO\ o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jVILUVWUHVSRQVHLVWKDWWKHSULRUUHVWUDLQWFODLP UHTXLUHPHQW8QOLNHWKHVHFDVHVWKH:HVWHUYLOOHDPHQGPHQW 3RODULVUDLVHVKDVEHHQPRRWHGE\VXEVHTXHQWOHJLVODWLRQLQ GRHV QRW UHPRYH WKH ODQJXDJH WKDW JLYHV ULVH WR WKH WKH :HVWHUYLOOH &LW\ &RXQFLO :KLOH WKH SDUWLHV ZHUH FRQVWLWXWLRQDOFKDOOHQJH5DWKHUWKHODQJXDJHFRQWLQXHVWR OLWLJDWLQJ WKLV DSSHDO :HVWHUYLOOH DPHQGHG WKH QRLVH DXWKRUL]HLQMXQFWLYHUHOLHI:HPXVWFRQFOXGHWKHUHIRUHWKDW RUGLQDQFHWRDGGWKHIROORZLQJODQJXDJH WKHSULRUUHVWUDLQWFODLPLVQRWPRRW m7KH &LW\ PD\ VHHN LQMXQFWLYH UHOLHI IRUELGGLQJ :HVWHUYLOOHQH[WDUJXHVWKDW3RODULVIODWRXWPLVFRQVWUXHV YLRODWLRQVRIWKHGHFLEHOOLPLWVLQWKLVFKDSWHUEXWVKDOO WKH QDWXUH RI D SULRU UHVWUDLQW 7KH FLW\ DUJXHV WKDW WKH QRWVHHNUHOLHISUHYHQWLQJDQ\RQHIURPFUHDWLQJSOD\LQJ 6XSUHPH&RXUWjVGHFLVLRQLQ:DUGY5RFN$JDLQVW5DFLVP UHSURGXFLQJ IXUQLVKLQJ RU WUDQVPLWWLQJ HOHFWURQLFDOO\ 866&WIRUHFORVHVDQ\DUJXPHQW DPSOLILHG VRXQG RU IURP SODQQLQJ SURPRWLQJ WKDW WKH :HVWHUYLOOH QRLVH RUGLQDQFH LV DQ XQFRQVWLWXWLRQDO VFKHGXOLQJ RU KRVWLQJ DQ\ HYHQW WKDW FUHDWHV SOD\V SULRUUHVWUDLQW,QWKDWFDVHWKH6XSUHPH&RXUWXSKHOGDJDLQVW UHSURGXFHV IXUQLVKHV RU WUDQVPLWV HOHFWURQLFDOO\ D)LUVW$PHQGPHQWFKDOOHQJHFHUWDLQJXLGHOLQHVDGRSWHGWR DPSOLILHGVRXQGl FRQWUROWKHYROXPHRIDPSOLILHGPXVLFDWD1HZ