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 7(11(66(( &2162/,'$7(' ; &2$/ &203$1 @l.LUNPD\ QRQHWKHOHVV SRVVHVV D FRPSHQVDEOH LQMXU\ LI KLV SQHXPRFRQLRVLV mPDWHULDOO\ ZRUVHQVl WKLV FRQGLWLRQ  $  FRPSDULVRQRIKLVSXOPRQDU\DVVHVVPHQWVLQDQG )URP  WR  .LUN ZDV RQ mOLJKW GXW\l IRU 7&& UDWKHU WKDQ ZRUNLQJ GLUHFWO\ DV D PLQHU  7HQQHVVHH&RQVROLGDWHG 1R 1R 7HQQHVVHH&RQVROLGDWHG  &RDOY.LUNHWDO &RDOY.LUNHWDO .LUNjVSXOPRQDU\WHVWUHVXOWVDWWDFKHGWRWKHGHQLDORIKLV WK &LU   :H PD\ WKHUHIRUH KROG WKHUH WR EH WKLUGDSSOLFDWLRQGHPRQVWUDWHGmWRWDOGLVDELOLW\lXQGHU3DUW VXEVWDQWLDO HYLGHQFH WR VXSSRUW WKH %RDUGjV PRUH JHQHUDO UHJXODWLRQV+LVUHVSLUDWRU\IXQFWLRQKDGQRZGHFOLQHG SRLQW WKDW .LUN KDG GHPRQVWUDWHG D mPDWHULDO FKDQJH LQ EHORZWKHOHYHOVVSHFLILHGLQ&)5†EL%%RWK FRQGLWLRQVlVXIILFLHQWWRVDWLVI\WKHVWDWXWRU\UHTXLUHPHQWV SDUWLHV DJUHH WKDW VFRUHV VKRZLQJ WRWDO GLVDELOLW\ ZHUH REWDLQHG*RYjW%UDW7&&%UDW7KHUHMHFWLRQRI (YLGHQFHIRUDQ$ZDUGRI%HQHILWV .LUNjV WKLUG DSSOLFDWLRQ GLG QRW GHQ\ WKH SUHVHQFH RI D EUHDWKLQJ LPSDLUPHQW FRQVWLWXWLQJ mWRWDO GLVDELOLW\l DV D 7&&jV DUJXPHQWV FKDOOHQJLQJ ZKHWKHU .LUN KDV JHQHUDO PDWWHU EXW LW UHLWHUDWHG WKH ILQGLQJ WKDW .LUNjV GHPRQVWUDWHG VXIILFLHQW FDXVDWLRQ DUH PRVW UHOHYDQW WR mEUHDWKLQJ LPSDLUPHQWl ZDV QRW GXH WR FRDO PLQLQJ RU ZKHWKHU.LUNLVXOWLPDWHO\HQWLWOHGWREHQHILWVXQGHUWKH$FW SQHXPRFRQLRVLV %\0U.LUNZDVLQEDGVKDSH+HKDGQRWZRUNHGLQ WKUHH\HDUVDQGKLVSXOPRQDU\WHVWVGHPRQVWUDWHGDEUHDWKLQJ 7KHFXUUHQWFODLPIRUEHQHILWVZDVILOHGE\.LUNLQ0DUFK LPSDLUPHQWFRQVLVWHQWZLWKWRWDOGLVDELOLW\IURPHPSOR\PHQW $OWKRXJK.LUNjVUHVSLUDWRU\KHDOWKKDGZRUVHQHGE\ DQGKLVSXOPRQDU\FDSDFLW\ZDVIXUWKHULQWRWKHmWRWDOO\ GLVDEOHGlUDQJHKLVFODLPZDVLQLWLDOO\GHQLHG7KHUHDVRQV  JLYHQE\WKHGLVWULFWGLUHFWRUZHUHODFNRIWRWDOGLVDELOLW\GXH ,W LV QRWHZRUWK\ WKDW D UHPDQG XUJHG E\ 7&& ZRXOG DOPRVW WRSQHXPRFRQLRVLVDQGQRFKDQJHLQPDWHULDOFRQGLWLRQ7KH FHUWDLQO\ UHVXOW LQ DQ $/s GHFLVLRQ LQ IDYRU RI FODLPDQW RQ WKLV SRLQW 6XFK D GHFLVLRQ DV 7&& DFNQRZOHGJHV ZRXOG EH VXSSRUWHG E\ LQLWLDOGHQLDOXQOLNHSUHYLRXVGHQLDOVGLGQRWUHO\RQ VXEVWDQWLDO HYLGHQFH DQG WKXV LPPXQH IURP UHYLHZ PDNLQJ LW XQFOHDU HLWKHUWKHDEVHQFHRISQHXPRFRQLRVLVRUWKHIDLOXUHRIFRDO ZKDW MXULVSUXGHQWLDO SXUSRVH ZRXOG EH VHUYHG E\ DGRSWLQJ 7&&jV PLQLQJWRFRQWULEXWHWRSQHXPRFRQLRVLV$OWKRXJKWKHIRUP SRVLWLRQ 2Q WKH RWKHU KDQG 0U .LUN KDV EHHQ ZDLWLQJ IRU PRUH WKDQ QLQH GHQLDOLVQRWH[SOLFLWLWDSSHDUVWRLQGLFDWHDVXPPDU\ILQGLQJ \HDUV IRU D GHFLVLRQ IURP WKH IHGHUDO V\VWHP UHJDUGLQJ KLV EODFNOXQJ E\ WKH GLVWULFW GLUHFWRU QRW LQFRQVLVWHQW ZLWK WKH PHGLFDO EHQHILWV $YRLGLQJ IXUWKHU \HDUV RI GHOD\ RQ D UHPDQG ZLWK D IRUHJRQH FRQFOXVLRQ ZRXOG FHUWDLQO\ EH LQ WKH ZRUGV RI ":,794 0LQLQJ  )G HYLGHQFH WKDW  .LUN GLG LQGHHG KDYH SQHXPRFRQLRVLV DW  DYRLGLQJ mSRWHQWLDO LQMXVWLFHl FDXVHG E\ KLV FRDO PLQLQJ DQG WKDW  KH ZDV WRWDOO\ GLVDEOHGEXWWKDWWKHWZRZHUHQRWFDXVDOO\FRQQHFWHG  7&& KDV DOVR DUJXHG WKDW SULRU WR HYHQ FRQVLGHULQJ .LUNjV FODLP EHFDXVHWKHVHYHULW\RI.LUNjVFRQGLWLRQDURVHIURPKLVRWKHU WKH $/s ZDV UHTXLUHG WR DVVHVV WKH LVVXH RI FDXVDWLRQ DV SDUW RI KLV UHVSLUDWRU\DLOPHQWV6LQFHWKHVHRWKHUUHVSLUDWRU\FRQGLWLRQV mPDWHULDO FKDQJHl LQTXLU\ 7&& %U DW  ,W DVVHUWV WKDW ZLWKRXW ZHUH QRW FRPSHQVDEOH DQG QRW FDXVHG E\ FRDO PLQLQJ FRQVLGHUDWLRQ RI FDXVDWLRQ WKH mFOHDU EDVLV IRU WKH 'HSDUWPHQWjV ILQDO .LUNjVFODLPZDVGHQLHG GHQLDO RI EHQHILWVl WKH LVVXH FDQQRW HYHQ EH UHRSHQHG 7KLV DUJXPHQW ZRXOG LQFUHDVH WKH VWDQGDUG IRU ILQGLQJ PDWHULDO FKDQJH EH\RQG WKH RQH ODLG GRZQ LQ 6KDURQGDOH 6KDURQGDOH FRQWHPSODWHV DQ LQLWLDO LQTXLU\ .LUNVRXJKWUHYLHZEHIRUHDQ$GPLQLVWUDWLYH/DZsXGJH VHSDUDWH IURP WKH XOWLPDWH GHFLVLRQ RQ ZKHWKHU WR DZDUG EHQHILWV DQG m$/slLQDQGZDVDZDUGHGEHQHILWVLQ7KLV WKHUH LV QR QHHG LQ WKH ILUVW VWDJH IRU WKH $/s WR DVVHVV WKH SUHYLRXV GHFLVLRQZDVEDVHGRQQHZPHGLFDORSLQLRQVE\'UV$GFRFN GHQLDOVj UHODWLYH OHYHO RI UHOLDQFH RQ WKH DOWHUQDWLYH JURXQGV XVHG WR GHQ\ DQG 6RWHUHV ZKR DWWULEXWHG .LUNjV GLVDELOLW\ LQ VXEVWDQWLDO WKH FODLP ,W GRHV QRW PDWWHU ZKHWKHU WKH UXOH UHTXLULQJ RYHUFRPLQJ RQH HOHPHQW LV SHUFHLYHG DV EHORQJLQJ WR WKH GRFWULQH RI LVVXH SUHFOXVLRQ 3HDERG\ &RDO &R Y 6SHVH  )G   WK &LU  HQ EDQF RU DV D EODFNOXQJVSHFLILF UXOH XVHG WR DFFRPPRGDWH LQ D VWUXFWXUHG ZD\ WKRVH PLQHUV ZKRVH FRQGLWLRQV ZRUVHQ RYHU WLPH LQ OLQH  7KLV UHFRQVWUXFWLRQ RI WKH LQLWLDO GHQLDOjV ILQGLQJV DSSUR[LPDWHV WKH ZLWK WKH UHPHGLDO SXUSRVHV RI WKH VWDWXWH 6HH /LVD /HH 0LQHV  )G DW SRVLWLRQ RI SHWLWLRQHU 7&& RQ WKH PHULWV RI .LUNjV FODLP   7HQQHVVHH&RQVROLGDWHG 1R 1R 7HQQHVVHH&RQVROLGDWHG  &RDOY.LUNHWDO &RDOY.LUNHWDO GLVDEOHGl LQ  DQG WKHUH FRXOG KDYH EHHQ QR PDWHULDO SDUWWRFRDOLQGXFHGSQHXPRFRQLRVLV7KH$/sDOVRUHOLHGRQ FKDQJHLQWKLVFRQGLWLRQ DGLDJQRVLVE\'U*LOOH\ZKLFKKDGLPSOLHGDVLPLODU HWLRORJ\ IRU .LUNjV SUREOHPV EXW ZKLFK KDG QRW EHHQ 7KH 'LUHFWRU DVVHUWV QRQHWKHOHVV WKDW WKHUH LV VXEVWDQWLDO FRQYLQFLQJ HQRXJK WR VXVWDLQ .LUNjV WKLUG DSSOLFDWLRQ o HYLGHQFHWRVXSSRUWWKHILQGLQJRIDPDWHULDOFKDQJHEHFDXVH QRWDEO\ *LOOH\jV  GLDJQRVLV KDG QRW PDGH DQ H[SOLFLW WKHUHLVVXEVWDQWLDOHYLGHQFHWKDWFRQGLWLRQVKDYHFKDQJHGDV ILQGLQJRIWRWDOGLVDELOLW\ WR DQ HOHPHQW DGMXGLFDWHG DJDLQVW .LUN WKH SUHVHQFH RI SQHXPRFRQLRVLV(YHQWKHLQLWLDOGHQLDORI.LUNjVFODLPLQ 7&& DSSHDOHG WKH $/sjV  GHFLVLRQ DQG DOWKRXJK  E\ WKH GLVWULFW GLUHFWRU WDFLWO\ DFNQRZOHGJHG WKDW DIILUPLQJ LQ ODUJH SDUW WKH %RDUG UHPDQGHG LW LQ  IRU SQHXPRFRQLRVLVZDVQRZSUHVHQW$OWKRXJKWKHUHKDGEHHQ UHFRQVLGHUDWLRQ LQ OLJKW RI RXU LQWHUYHQLQJ GHFLVLRQ LQ VRPHGLDJQRVHVRISQHXPRFRQLRVLVSULRUWRLWVSUHVHQFH 6KDURQGDOH Y 5RVV  )G  WK &LU   7KLV KDV EHFRPH JHQHUDOO\ DFNQRZOHGJHG DPRQJ KLV WUHDWLQJ UHPDQG ZDV ZLWK VSHFLDO UHIHUHQFH WR ZKHWKHU XQGHU WKH SK\VLFLDQVDIWHUWKHILOLQJRIKLVIRXUWKFODLP7&&DGPLWV 6KDURQGDOHVWDQGDUGV.LUNjVIRXUWKDSSOLFDWLRQZDVWLPHO\ WKDW WKHUH LV VXEVWDQWLDO HYLGHQFH IRU WKH SUHVHQFH RI ILOHGDQGKDGHVWDEOLVKHGDPDWHULDOFKDQJHLQFRQGLWLRQV,Q SQHXPRFRQLRVLV7&&%UDWQEXWDWWHPSWVWRHYDGH WKH$/sGHWHUPLQHGWKDWDOWKRXJK.LUNKDGQRWGRQH WKHFRQVHTXHQFHRIWKLVE\FODLPLQJWKHUHZDVDGLDJQRVLVRI DQ\PLQLQJZRUNEHWZHHQDQGWKHFRPPXQLFDWLRQ LW EHIRUH  7KLV LV GLVLQJHQXRXV KRZHYHU EHFDXVH WKH RIDQHZPHGLFDORSLQLRQWRKLPLQ0DUFKVKRUWO\DIWHU 6KDURQGDOHVWDQGDUGUHTXLUHVRQO\DVXEVWDQWLDOGLIIHUHQFHLQ KHILOHGKLVIRXUWKDSSOLFDWLRQVKRXOGEHGHHPHGWKHVWDUWRI WKHERGLHVRIHYLGHQFHQRWDFRPSOHWHDEVHQFHRIHYLGHQFHDW WKHOLPLWDWLRQVSHULRGFRQWDLQHGLQ&)5†7KH WKHHDUOLHUWLPH,IWKLVGLIIHUHQFHFDQDOWHURQHRIWKHOHJDO $/sDOVRGHWHUPLQHGWKDW.LUNKDGVKRZQDPDWHULDOFKDQJH EDVHVRIWKHSULRUFODLPGHQLDOLWLVPDWHULDO LQFRQGLWLRQVEHFDXVH$GFRFNDQG6RWHUHVKDGIRXQGLQ WKDWKHZDVQRZWRWDOO\GLVDEOHGDQG.LUNjVmWKLUGFODLPKDG %RWKWKH$/sDQGWKH%RDUGUHOLHGRQWKHQHZHYLGHQFHRI EHHQ GHQLHG E\ GLVWULFW GLUHFWRU RQ sDQXDU\   IRU SQHXPRFRQLRVLVWKURXJKRXWWKHLURSLQLRQDVGLGWKHGHSXW\ IDLOXUHWRHVWDEOLVKHLWKHUSQHXPRFRQLRVLVRUWRWDOGLVDELOLW\l GLUHFWRU$IDFWXDOUHFRUGKDVWKHUHIRUHEHHQGHYHORSHGRQ 6LQFHWKH$/sIRXQG.LUN KDGSURYHQRQHRIWKHHOHPHQWV WKLV SRLQW DOWKRXJK QRW LQ GLUHFW UHIHUHQFH WR RYHUFRPLQJ mSUHYLRXVO\DGMXGLFDWHGDJDLQVWKLP>@l6KDURQGDOH)G †G:HPD\DIILUPRQJURXQGVGLIIHUHQWIURPWKRVH DWKHFRQFOXGHGWKDWDPDWHULDOFKDQJHKDGEHHQVKRZQ XVHGE\WKH%RDUGLIWKH\DUHVXSSRUWHGLQWKHUHFRUG6HH 'LUHFWRU2:&3Y4XDUWR0LQLQJ&R)G 7&& DSSHDOHG WR WKH %RDUG ZKLFK DIILUPHG WKH $/sjV DZDUGLQ7KH%RDUGKHOGWKDWWKHVWDWXWHRIOLPLWDWLRQV FRXOG QRW EHJLQ WR UXQ XQWLO D PHGLFDO RSLQLRQ KDG EHHQ FRPPXQLFDWHGWRWKHPLQHURIDILQGLQJRImWRWDOGLVDELOLW\ GXHWRSQHXPRFRQLRVLVl,WIRXQGWKDWQHLWKHURI'U*LOOH\jV  DQG  PHGLFDO RSLQLRQV KDG FRPH WR WKDW  FRQFOXVLRQDQGWKDW'U6RWHUHVjVRSLQLRQZDVWKHILUVW 8QGHU WKH $FW WKHUH LV D FUXFLDO GLVWLQFWLRQ EHWZHHQ mWRWDO GLVDELOLW\l DQG mWRWDO GLVDELOLW\ GXH WR SQHXPRFRQLRVLVl D GLVWLQFWLRQ DOVR WR GR VR  6KDURQGDOH KDG VXJJHVWHG WKDW LQ RUGHU IRU WKH RI JUHDW SUDFWLFDO LPSRUWDQFH LQ PDQ\ FDVHV DVLGH IURP WKLV RQH 'LVWULFW VWDWXWH WR EHJLQ DJDLQ DQ DSSOLFDQW PLQHU LQ DGGLWLRQ WR GLUHFWRUV $/sV DQG WKH %RDUG DUH WKHUHIRUH ZHOODGYLVHG WR FUDIW WKHLU UHFHLYLQJDQHZPHGLFDORSLQLRQPXVWmZRUN>@LQWKHFRDO ILQGLQJV DQG GHFLVLRQV LQ VXFK D ZD\ DV WR DYRLG DQ\ VXJJHVWLRQ WKDW WKHVH PLQHVIRUDVXEVWDQWLDOSHULRGDIWHUWKHGHQLDOl)G WHUPV DUH LQ DQ\ ZD\ LQWHUFKDQJHDEOH  7HQQHVVHH&RQVROLGDWHG 1R 1R 7HQQHVVHH&RQVROLGDWHG  &RDOY.LUNHWDO &RDOY.LUNHWDO DW7KH%RDUGFRQFOXGHGWKDWLQWKLVFDVHWKLVODQJXDJH EHHQ D OHJDO HUURU LQ WKH SUHYLRXV DGMXGLFDWLRQ  ,Q ZDVQRWGHWHUPLQDWLYHDQGUHOLHGRQ6KDURQGDOHjVVWDWHPHQW 6KDURQGDOHZHKHOGVXFKVLWXDWLRQVZHUHFRUUHFWDEOHZLWKLQ WKDWDmFODLPDQWPXVWEHIUHHWRUHDSSO\IRUEHQHILWVLIKLVILUVW WKH RQH\HDU WLPH SHULRG DIWHU D GHQLDO EXW WKDW DIWHU WKLV ILOLQJZDVSUHPDWXUHl,ELG7KH%RDUGDOVRDIILUPHGWKH SRLQWDFODLPDQWLVQRWmHQWLWOHGWREHQHILWVVLPSO\EHFDXVH $/sjV ILQGLQJ WKDW WKHUH KDG EHHQ D PDWHULDO FKDQJH LQ KLVFODLPVKRXOGKDYHEHHQJUDQWHGl)GDW,QRUGHU FRQGLWLRQV EHFDXVH WKH GHQLDO RI WKH  FODLP KDG EHHQ WRPDLQWDLQWKLVOLPLWDWLRQLQIDYRURIILQDOLW\DQGLQRUGHUWR EDVHGQRWPHUHO\RQmFODLPDQWjVIDLOXUHWRVKRZDQ\GLVDELOLW\ PHDVXUHDmFKDQJHLQFRQGLWLRQVmWKH$/sPXVWFRPSDUHWKH ZDV GXH WR SQHXPRFRQLRVLV    >EXW@ RQ WKH JURXQG WKDW VXPRIWKHQHZHYLGHQFHZLWKWKHVXPRIWKHHDUOLHUHYLGHQFH FODLPDQWIDLOHGWRHVWDEOLVKDQ\RIWKHHOHPHQWVRIHQWLWOHPHQW RQ ZKLFK WKH GHQLDO RI WKH FODLP KDG EHHQ SUHPLVHG  $ LQFOXGLQJWRWDOGLVDELOLW\l7KH%RDUGGLGQRWGLVFXVV.LUNjV mPDWHULDO FKDQJHl H[LVWV RQO\ LI WKH QHZ HYLGHQFH ERWK SXOPRQDU\WHVWV HVWDEOLVKHVWKHHOHPHQWDQGLVVXEVWDQWLDOO\PRUHVXSSRUWLYH RIFODLPDQW6HHLGDWGHVSLWH$/sILQGLQJWKDWmQHZ[ 7&&QRZDSSHDOVWKH%RDUGjVGHFLVLRQDVHUURQHRXV UD\HYLGHQFHHVWDEOLVKHGWKHH[LVWHQFHRISQHXPRFRQLRVLVl RQ VHYHUDO JURXQGV  ,W DUJXHV LQWHU DOLD WKDW WKH %RDUG UHPDQGLQJIRUDQ$/sGHWHUPLQDWLRQRImKRZWKHODWHU[UD\V LJQRUHG RQH RI WKH SUHFRQGLWLRQV 6KDURQGDOH LPSRVHG IRU GLIIHUTXDOLWDWLYHO\IURPWKRVHVXEPLWWHGLQ UHVWDUWLQJWKHVWDWXWHRIOLPLWDWLRQVWKDWWKHDSSOLFDQWUHWXUQWR ZRUNDIWHUWKHSUHYLRXVGHQLDO7&&DOVRDVVHUWVWKDWWKH$/s 7KH$/sLQWKLVFDVHPDGHDOHJDOHUURUVLPLODUWRWKDWRIWKH DQGWKH%RDUGHUUHGLQILQGLQJ.LUNjVWRWDOGLVDELOLW\LQ MXGJHLQ6KDURQGDOHE\IDLOLQJWRVKRZWKDWRQWKHHOHPHQW UHSUHVHQWHGDmPDWHULDOFKDQJHRIFRQGLWLRQlEHFDXVH.LUN VHOHFWHG WR VKRZ D PDWHULDO FKDQJH WKHUH ZDV LQ IDFW D ZDVWRWDOO\GLVDEOHGZHOOEHIRUHWKDWWLPH7KHFODLPDQWLVQRW ZRUVHQLQJRIFODLPDQWjVFRQGLWLRQ,QDGGLWLRQWKH$/sHUUHG FXUUHQWO\ SDUWLFLSDWLQJ LQ WKH OLWLJDWLRQ  7KH 'LUHFWRU E\ PLVLGHQWLI\LQJ WKH HOHPHQWV RI HQWLWOHPHQW DFWXDOO\ KRZHYHUGHIHQGVWKH%RDUGjVLQWHUSUHWDWLRQRI6KDURQGDOH DGMXGLFDWHGDJDLQVW.LUN7KH$/sjVILQGLQJRQWKHFXUUHQW DQG FODLPV WKDW HYHQ LI 7&&jV DUJXPHQW UHJDUGLQJ WRWDO H[LVWHQFHRImWRWDOGLVDELOLW\lZDVQRWGLUHFWO\UHVSRQVLYHWR GLVDELOLW\LVDFFHSWHGWKHUHZDVDQRWKHUFOHDUEDVLVIRUILQGLQJ WKHNH\KROGLQJRIWKHGHQLDOWKDW.LUNKDGIDLOHGWR DFKDQJHLQFRQGLWLRQEDVHGRQWKHQHZGLDJQRVHVRI VKRZ mWRWDO GLVDELOLW\ GXH WR SQHXPRFRQLRVLVl HPSKDVLV SQHXPRFRQLRVLV*RYjW%UDW DGGHG,IWKLVLVGHHPHGWKHmHOHPHQWlWKHQWKH$/sIDLOHG WRDGGUHVVWKDWHOHPHQW,IRQWKHRWKHUKDQGWKHmHOHPHQWl ,, XQGHUFRQVLGHUDWLRQZDVmWRWDOGLVDELOLW\lVLPSOLFLWHUoDVWKH $/s DSSDUHQWO\ EHOLHYHG o WKHQ WKHUH LV HYLGHQFH 6WDQGDUGRI5HYLHZ DFNQRZOHGJHG E\ DOO SDUWLHV WKDW .LUN ZDV DOUHDG\ mWRWDOO\ 7KLVFRXUWPXVWDIILUPWKH%RDUG VGHFLVLRQLIWKH%RDUGKDV QRWFRPPLWWHGDQ\OHJDOHUURURUH[FHHGHGLWVVFRSHRIUHYLHZ RIWKH$/s VGHWHUPLQDWLRQ*OHQ&RDO&RY6HDOV)G   WK &LU   7KH FRXUW UHYLHZV WKH $/s V GHFLVLRQRQO\WRGHFLGHZKHWKHULWLVVXSSRUWHGE\VXEVWDQWLDO  7KH mFKDQJHl LQ WKLV SKUDVH LV WKH DFWXDO GLIIHUHQFH EHWZHHQ WKH ERGLHV RI HYLGHQFH SUHVHQWHG DW GLIIHUHQW WLPHV 7KH mPDWHULDOLW\l RI WKH FKDQJH LV PDUNHG E\ WKH IDFW WKDW WKLV GLIIHUHQFH KDV WKH FDSDELOLW\ RI  7&& FRQVLGHUV WKLV SURSRVDO IRU DQ DOWHUQDWH JURXQG mRXWUDJHRXVl FRQYHUWLQJ DQ LVVXH GHWHUPLQHG DJDLQVW WKH FODLPDQW LQWR RQH GHWHUPLQHG 7&& 5HSO\ %U DW  LQ KLV IDYRU  7HQQHVVHH&RQVROLGDWHG 1R 1R 7HQQHVVHH&RQVROLGDWHG  &RDOY.LUNHWDO &RDOY.LUNHWDO GHWHUPLQDWLRQDPLQHUZKRKDVQRWVXEVHTXHQWO\ZRUNHGLQ HYLGHQFHDQGLVLQDFFRUGDQFHZLWKWKHDSSOLFDEOHODZ,ELG WKHPLQHVZLOOEHXQDEOHWRILOHDQ\IXUWKHUFODLPVDJDLQVWKLV :HGRQRWUHZHLJKWKHHYLGHQFHRUVXEVWLWXWHRXUMXGJPHQW HPSOR\HU DOWKRXJK RI FRXUVH KH PD\ FRQWLQXH WR SXUVXH IRUWKDWRIWKH$/s*UD\Y6/&&RDO&R)G SHQGLQJFODLPV WK&LU7KXVDVORQJDVWKH$/s VFRQFOXVLRQVDUH VXSSRUWHGE\WKHHYLGHQFHWKH\ZLOOQRWEHUHYHUVHGmHYHQLI (YLGHQFHIRUDm0DWHULDO&KDQJHlLQ.LUNjV&RQGLWLRQ WKHIDFWVSHUPLWDQDOWHUQDWLYHFRQFOXVLRQl X@QVFUXSXORXV HPSOR\HUV FRXOG FRQYHQLHQWO\ KDV RQO\ WR QRWH WKDW LI PHUH DSSOLFDWLRQ IRU EHQHILWV ZHUH DYRLG DOO OLDELOLW\l E\ SXUSRVHO\ PDNLQJ SUHPDWXUH GHWHUPLQDWLRQV *RYjW HQRXJK WR VWDUW WKH FORFN UXQQLQJ RXU HQWLUH GLVFXVVLRQ RI %U DW  Q :H KDYH QR RFFDVLRQ LQ WKLV FDVH WR DGGUHVV WKH ULVN SUHPDWXUHILOLQJLQ6KDURQGDOHZRXOGKDYHEHHQSRLQWOHVV EHQHILW UDWLR RI VXFK DQ LOOHJDO WDFWLF RU WKH 'LUHFWRUjV H[WUDRUGLQDU\ F\QLFLVP UHJDUGLQJ $PHULFDjV FRDO LQGXVWU\