$VLI7XIDO

,1&$3$&,7<
([WUDFWIURP-&6PLWK6PLWK 7KRPDV$&DVHERRNRQ&RQWUDFW(OHYHQWK(GLWLRQ&KDSWHU
7KH JHQHUDO UXOH RI (QJOLVK ODZ LV WKDW DQ\ SHUVRQ LV FRPSHWHQW WR ELQG KLPVHOI WR DQ\ FRQWUDFW KH
FKRRVHVWRPDNHSURYLGHGWKDWLWLVQRWLOOHJDORUYRLGIRUUHDVRQVRISXEOLFSROLF\6HHEHORZ&KDSWHU$W
FRPPRQ ODZ WKHUH DUH H[FHSWLRQV WR WKLV UXOH LQ WKH FDVH RI FRUSRUDWLRQV PLQRUV PDUULHG ZRPHQ PHQWDOO\
LQFRPSHWHQWDQGLQWR[LFDWHGSHUVRQV7KHH[FHSWLRQVDUHQRZJUHDWO\UHGXFHGLQVFRSH$VHULHVRIVWDWXWHVIURP
 WR  DEROLVKHG WKH PDUULHG ZRPDQV GLVDELOLWLHV DQG VKH QRZ HQMR\V IXOO FRQWUDFWXDO FDSDFLW\ 7KH
SUHVHQWVWDWHRIWKHRWKHUH[FHSWLRQVUHTXLUHVDOLWWOHIXUWKHUH[SODQDWLRQ

D&25325$7,216
$ FRUSRUDWLRQ FUHDWHG E\ 5R\DO &KDUWHU KDV DOZD\V KDG WKH VDPH FRQWUDFWXDO FDSDFLW\ DV DQ RUGLQDU\
SHUVRQEXWDFRPSDQ\LQFRUSRUDWHGXQGHUWKH&RPSDQLHV$FWFRXOGXQWLOUHFHQWO\RQO\PDNHVXFKFRQWUDFWVDV
ZHUHZLWKLQWKHVFRSHRIWKHREMHFWVVHWRXWLQLWVPHPRUDQGXPRIDVVRFLDWLRQ$Q\WKLQJEH\RQGWKDWZDVXOWUD
YLUHVDQGYRLG
,QWKHOHDGLQJFDVHRI$VKEXU\5DLOZD\&DUULDJHDQG,URQ&R/WGY5LFKH/5+/WKH
REMHFWV VHW RXWLQ WKH FRPSDQ\V PHPRUDQGXP ZHUH WR PDNHDQGVHOO RU OHQG RQ KLUH UDLOZD\ FDUULDJHV DQG
ZDJJRQV DQG DOO NLQGV RI UDLOZD\ SODQW ILWWLQJV PDFKLQHU\ DQG UROOLQJ VWRFN WR FDUU\ RQ WKH EXVLQHVV RI
PHFKDQLFDO HQJLQHHUV DQG JHQHUDO FRQWUDFWRUV WR SXUFKDVH OHDVH ZRUN DQG VHOO PLQHV PLQHUDOV ODQG DQG
EXLOGLQJV WR SXUFKDVH DQG VHOO DV PHUFKDQWV WLPEHU FRDO PHWDOV RU RWKHU PDWHULDOV DQG WR EX\ DQ\ VXFK
PDWHULDOVRQFRPPLVVLRQ RUDVDJHQWV7KHGLUHFWRUVSXUFKDVHGDFRQFHVVLRQ IRU PDNLQJDUDLOZD\LQ%HOJLXP
DQGSXUSRUWHGWRFRQWUDFWZLWK5LFKHWKDWKHVKRXOGKDYHWKHFRQVWUXFWLRQRIWKHOLQH5LFKHVDFWLRQIRUEUHDFKRI
WKH DOOHJHG FRQWUDFW IDLOHG VLQFH WKH +RXVH RI /RUGV KHOG WKDW WKH FRQVWUXFWLRQ RI D UDLOZD\ DV GLVWLQFW IURP
UROOLQJVWRFNZDVXOWUDYLUHVWKHFRPSDQ\DQGWKDWWKHUHIRUHWKHFRQWUDFWZDVYRLG(YHQLIHYHU\VKDUHKROGHURI
WKHFRPSDQ\KDGH[SUHVVHGKLVDSSURYDORIWKHDFWLWZRXOGKDYHPDGHQRGLIIHUHQFHIRULWZDVDQDFWZKLFKWKH
FRPSDQ\KDGQRSRZHULQODZWRGR,PSRUWDQWFKDQJHVZHUHPDGHE\VHFWLRQRIWKH&RPSDQLHV$FW
VXEVWLWXWLQJ D QHZ VHFWLRQ  RI WKH &RPSDQLHV $FW  8QGHU WKDW QHZ VHFWLRQ LW UHPDLQV WKH GXW\ RI WKH
GLUHFWRUVWRREVHUYHDQ\OLPLWDWLRQVRQWKHLUSRZHUVIORZLQJ IURP WKHFRPSDQ\VPHPRUDQGXP VHFWLRQ
DQG D PHPEHU RI D FRPSDQ\ PD\ EULQJ SURFHHGLQJV WR UHVWUDLQ WKH GRLQJ RI DQ DFW LQ H[FHVV RI WKRVH SRZHUV
VHFWLRQEXWE\VHFWLRQ
7KH YDOLGLW\ RI DQ DFW GRQHE\ D FRPSDQ\VKDOO QRW EH FDOOHG LQWR TXHVWLRQ RQ WKHJURXQG RI ODFN RI
FDSDFLW\E\UHDVRQRIDQ\WKLQJLQWKHFRPSDQ\VPHPRUDQGXP

6R E\ DSSO\LQJ WKH PRGHUQODZ WR WKH$VKEXU\FDVH WKHGLUHFWRUV FRPPLWWHG D EUHDFK RI GXW\ E\ PDNLQJ WKH
FRQWUDFW DQG PLJKW KDYH EHHQ UHVWUDLQHG E\ DFWLRQ E\ D PHPEHU EXW RQFH WKH FRQWUDFW ZDV PDGH LWV YDOLGLW\
FRXOGQRWEHTXHVWLRQHGSURYLGHGWKDWWKHPDNLQJ RIWKHFRQWUDFWZDVDQDFWGRQHE\WKHFRPSDQ\,WPLJKWEH
REMHFWHGWKDWLWZDV QRW VXFK DQDFWEHFDXVHWKHGLUHFWRUVKDGQRSRZHUWRPDNHWKHFRQWUDFW7KLVREMHFWLRQLV
PHWE\VHFWLRQ$
,QIDYRXURIDSHUVRQGHDOLQJZLWKDFRPSDQ\LQJRRGIDLWKWKHSRZHURIWKHERDUGRIGLUHFWRUVWRELQG
WKH FRPSDQ\ RU DXWKRULVH RWKHUV WR GR VR VKDOO EH GHHPHG WR EH IUHH RI DQ\ OLPLWDWLRQ XQGHU WKH
FRPSDQ\VFRQVWLWXWLRQ

$SHUVRQLVSUHVXPHGWRKDYHDFWHGLQJRRGIDLWKXQOHVVWKHFRQWUDU\LVSURYHGDQGLVQRWWREHUHJDUGHG
DVDFWLQJLQEDGIDLWKPHUHO\EHFDXVHKHNQRZVWKHDFWLVEH\RQGWKHGLUHFWRUVSRZHUV$QXOWUDYLUHVDFWE\WKH
GLUHFWRUVPD\QRZEHUDWLILHGEXWRQO\E\VSHFLDOUHVROXWLRQZKLFKGRHVQRWDIIHFWDQ\OLDELOLW\LQFXUUHGE\WKH
GLUHFWRUVRUDQ\RWKHUSHUVRQDQ\VXFKUHOLHIPXVWEHDJUHHGWRVHSDUDWHO\E\VSHFLDOUHVROXWLRQ
)RUPHUO\ D FRUSRUDWLRQV FRQWUDFWV ZHUH LQYDOLG XQOHVV PDGH XQGHU WKH FRUSRUDWH VHDO EXW VLQFH WKH
&RUSRUDWH %RGLHV &RQWUDFWV $FW  D FRUSRUDWLRQ PD\ PDNH FRQWUDFWV LQ WKH VDPH PDQQHU DV D QDWXUDO
SHUVRQWKDWLVWKHFRQWUDFWPD\EHPDGHRUDOO\XQOHVVDVSHFLDOUXOHUHTXLUHVDZULWWHQFRQWUDFWDVLQFRQWUDFWV
IRU WKH VDOH RU GLVSRVLWLRQ RI DQ LQWHUHVWLQ ODQGRU HYLGHQFHLQ ZULWLQJDV LQ WKH FDVHRI D JXDUDQWHH ZLWKLQ
VHFWLRQRIWKH6WDWXWHRI)UDXGV

$VLI7XIDO

E0,1256
$WFRPPRQODZSHUVRQVXQGHUWKHDJHRIZHUHGHVLJQDWHGLQIDQWVDQGKDGRQO\DOLPLWHGFDSDFLW\
WR FRQWUDFW )URP -DQXDU\   WKH )DPLO\ /DZ 5HIRUP $FW  UHGXFHG WKH DJH RI PDMRULW\ WR  DQG
DXWKRULVHGWKHWHUPPLQRUDVDQDOWHUQDWLYHWRLQIDQW 0LQRULVQRZ WKHSUHIHUUHGWHUP7KHFDSDFLW\RID
PLQRU WR FRQWUDFW LV VWLOO UHJXODWHG E\ WKH FRPPRQ ODZ PRGLILHG E\ WKH 0LQRUV &RQWUDFWV $FW  ZKLFK
UHSHDOHGDWURXEOHVRPHVWDWXWHWKH,QIDQWV5HOLHI$FW
7KHJHQHUDOSULQFLSOHLVWKDWDFRQWUDFWPDGHE\DPLQRUZLWKDQDGXOWLVELQGLQJRQWKHDGXOWEXWQRWRQ
WKHPLQRU,IDIWHUDWWDLQLQJKLVPDMRULW\KHUDWLILHVLWE\DQDFWFRQILUPLQJWKHSURPLVHKHPDGHZKHQDPLQRU
KHLVERXQG7KHUHQHHGEHQRFRQVLGHUDWLRQIRUWKHDFWRIUDWLILFDWLRQ$FRQWUDFWE\DPLQRULVQRWYRLGDQGDQ\
PRQH\RUSURSHUW\WUDQVIHUUHGE\KLPXQGHUWKHFRQWUDFWFDQEHUHFRYHUHGRQO\LIWKHUHKDVEHHQDWRWDOIDLOXUHRI
FRQVLGHUDWLRQ7KHUHDUHWKUHHH[FHSWLRQDOFDVHVZKHUHDPLQRULVWRVRPHH[WHQWERXQG
1HFHVVDULHV $ PLQRU LV ERXQG WR SD\ IRU QHFHVVDULHV VXSSOLHG WR KLP XQGHU D FRQWUDFW 7KH 6DOH RI
*RRGV$FWVUHHQDFWLQJWKH$FWRISURYLGHV

ZKHUHQHFHVVDULHVDUHVROGDQG GHOLYHUHGWRDQLQIDQWRUPLQRUKHPXVWSD\DUHDVRQDEOHSULFH

WKHUHIRU
1HFHVVDULHVLQWKLVVHFWLRQPHDQVJRRGVVXLWDEOHWRWKHFRQGLWLRQRIOLIHRIVXFKLQIDQWRUPLQRU
DQGWRKLVDFWXDOUHTXLUHPHQWVDWWKHWLPHRIVDOHDQGGHOLYHU\

1HFHVVDULHV DUH WKRVH WKLQJV ZLWKRXW ZKLFK D SHUVRQ FDQQRW UHDVRQDEO\ H[LVW DQG LQFOXGH IRRG
FORWKLQJ ORGJLQJ HGXFDWLRQ RU WUDLQLQJ LQ D WUDGH DQG HVVHQWLDO VHUYLFHV 7KH FRQGLWLRQ RI OLIH RI WKH PLQRU
PHDQV KLV VRFLDOVWDWXV DQGKLV ZHDOWK:KDWLVUHJDUGHGDVQHFHVVDU\ IRU WKHPLQRUUHVLGLQJLQD VWDWHO\KRPH
PD\EHXQQHFHVVDU\IRUWKHUHVLGHQWRIDFRXQFLOIODW:KDWHYHUWKHPLQRUVVWDWXVWKHJRRGVPXVWEHVXLWDEOHWR
KLVDFWXDOUHTXLUHPHQWVLI KHDOUHDG\ KDVHQRXJKIDQF\ ZDLVWFRDWVPRUHFDQQRWEHQHFHVVDU\1DVKY,QPDQ
>@.%&$
7KHQDWXUHRIWKHPLQRUVOLDELOLW\IRUQHFHVVDU\JRRGVLVXQFHUWDLQ7KHIDFWWKDWWKH6DOHRI*RRGV$FW
PDNHV KLPOLDEOHRQO\IRUJRRGVVROGDQGGHOLYHUHGDQGWRSD\QRWDQ\DJUHHGSULFHEXWDUHDVRQDEOHSULFH
VXJJHVWV TXDVLFRQWUDFWXDO OLDELOLW\KH PXVW SD\QRW EHFDXVHKH KDV FRQWUDFWHG WR GR VR EXWEHFDXVHWKHODZ
UHTXLUHV KLP WR UHFRPSHQVH WKH VHOOHU IRU D EHQHILW FRQIHUUHG DQG DFFHSWHG 6RPH GLFWD VXSSRUW WKLV YLHZ EXW
RWKHUVWUHDWWKHPLQRUVOLDELOLW\DVFRQWUDFWXDO,Q5REHUWVY*UD\ >@.%&$DPLQRUZDV KHOGOLDEOH
IRUKLVIDLOXUHWRSHUIRUPDFRQWUDFWIRUDWRXUZLWKWKHSODLQWLIIDQRWHGELOOLDUGVSOD\HU,WZDVDFRQWUDFWIRUWKH
LQVWUXFWLRQRIWKHPLQRU7KHFRQWUDFWZDVZKROO\H[HFXWRU\DQGEXWLWZDVKHOGWKDWWKHFRQWUDFWZDVELQGLQJRQ
KLP IURP LWV IRUPDWLRQ  ,W PD\ EH WKRXJKW WKDW WKHUH LV D GLVWLQFWLRQ EHWZHHQ QHFHVVDU\ JRRGV DQG QHFHVVDU\
VHUYLFHVEXWWKLVLVGLIILFXOWWRMXVWLI\ORJLFDOO\ RUKLVWRULFDOO\3HUKDSVWKHFRQWUDFWLQ5REHUWVY*UD\EHORQJV
PRUHSURSHUO\WRWKHFDWHJRU\RIEHQHILFLDOFRQWUDFWVRIVHUYLFHEHORZ
$ FRQWUDFW LV QRW ELQGLQJ RQ D PLQRU PHUHO\ EHFDXVHLW LV SURYHGWR EH IRU WKH PLQRUV EHQHILW EXWD
FRQWUDFWZKLFKZRXOGRWKHUZLVHEHELQGLQJDVDFRQWUDFWIRUQHFHVVDULHVLVQRWVRLILWFRQWDLQVKDUVKDQGRQHURXV
WHUPV)DZFHWWY6PHWKXUVW/-.%$WNLQ-
%HQHILFLDO FRQWUDFWV RI VHUYLFH ,W LV IRU WKH PLQRUV EHQHILW WKDW KH VKRXOG EH DEOH WR REWDLQ
HPSOR\PHQW ZKLFK ZRXGEHGLIILFXOW LIKHFRXOGQRW PDNHD ELQGLQJFRQWUDFW7KHODZDOORZVKLP WRGRVR
SURYLGHG WKDW WKH FRQWUDFW WDNHQ DV D ZKROH LV PDQLIHVWO\ IRU KLV EHQHILW 6R ZKHUH D \RXQJ UDLOZD\ SRUWHU
DJUHHGWRMRLQDQLQVXUDQFHVFKHPHDQGWRIRUJRDQ\FODLPVKHPLJKWKDYHXQGHUWKH(PSOR\HUV/LDELOLW\$FW
KH KDG IRUIHLWHG KLV ULJKWV XQGHU WKH $FW WKH FRQWUDFW DV D ZKROH EHLQJ IRU KLV EHQHILW &OHPHQWV Y /RQGRQ 
1RUWK:HVWHUQ5DLOZD\ >@4%&$&RQWUDFWVHQDEOLQJDPLQRUWRSXUVXHDFDUHHUDVDSURIHVVLRQDO
ER[HUDQGDVDQDXWKRUKDYHEHHQKHOGELQGLQJDVEHLQJIRUWKHLUEHQHILW
$FTXLVLWLRQRISURSHUW\ZLWKREOLJDWLRQV :KHQDPLQRUDFTXLUHVDVXEMHFWRIDSHUPDQHQWQDWXUH
ZLWK FHUWDLQ REOLJDWLRQV DWWDFKHG WR LWVXFK DV D OHDVHKROG RU VKDUHV LQ D FRPSDQ\KH LV ERXQG E\ WKH
REOLJDWLRQV DV ORQJ DV KH UHWDLQV WKH VXEMHFW +H PXVW SD\ WKH UHQW RU FDOOV RQ WKH VKDUHV /RQGRQ  1RUWK
:HVWHUQ5DLOZD\Y00LFKDHO([7KHFRQWUDFWLVYRLGDEOHE\WKHPLQRUKHPD\UHSXGLDWHLWDQ\
WLPH GXULQJ KLV PLQRULW\ RU ZLWKLQ D UHDVRQDEOH WLPH WKHUHDIWHU ,W LV XQFHUWDLQ ZKHWKHU DYRLGDQFH KHUH PHDQV
UHVFLVVLRQDELQLWLRRUDYRLGDQFHRIRQO\IXWXUHREOLJDWLRQVEXWZKHWKHULWLVUHWURVSHFWLYHRUQRWLWVHHPVWKDW
WKHPLQRUFDQQRWUHFRYHUPRQH\ZKLFKKHKDVDOUHDG\SDLGXQOHVVWKHUHKDVEHHQDWRWDOIDLOXUHRIFRQVLGHUDWLRQ
6WHLQEHUJY6FDOD/WG >@&K&$

$VLI7XIDO
5HVWLWXWLRQ E\ D PLQRU :KHUH D PLQRU KDV REWDLQHG SURSHUW\ XQGHU D FRQWUDFW ZKLFK LV QRW
HQIRUFHDEOHDJDLQVWKLPWKHDGXOWSDUW\ZKRFDQQHLWKHUVXH IRUWKHSULFHQRUJHWWKHSURSHUW\EDFNPD\VXIIHUDQ
LQMXVWLFH(YHQZKHUHWKHPLQRUKDVOLHGDERXWKLVDJHQRDFWLRQLQGHFHLWZLOOOLHEHFDXVHWKLVZRXOGLQHIIHFW
HQDEOHWKHFRQWUDFWWREHHQIRUFHGDJDLQVWKLPDQGIRUWKHVDPHUHDVRQLWLVLPSUREDEOHWKDWWKHPLQRUZRXOGEH
HVWRSSHG IURP DVVHUWLQJ KLV WUXH DJH 7KH 0LQRUV &RQWUDFWV $FW  V QRZ DIIRUGV D OLPLWHG PHDVXUH RI
UHGUHVV:KHUHDFRQWUDFWPDGHDIWHUWKHFRPPHQFHPHQWRIWKH$FWLVXQHQIRUFHDEOHDJDLQVWDGHIHQGDQWEHFDXVH
KHZDVDPLQRUZKHQLWZDVPDGH
WKHFRXUWPD\LILWLVMXVWDQGHTXLWDEOHWRGRVRUHTXLUHWKHGHIHQGDQWWRWUDQVIHUWRWKHSODLQWLIIDQ\
SURSHUW\DFTXLUHGE\WKHGHIHQGDQWXQGHUWKHFRQWUDFWRUDQ\SURSHUW\UHSUHVHQWLQJLW

7KLV PD\ DVVLVW WKH SODLQWLII ZKHUH WKH SURSHUW\ LV LGHQWLILDEOH EXW ZKHUH WKH SODLQWLII KDV ORDQHG WKH
PRQH\LWZLOOXVXDOO\QRWEH7KHSODLQWLIIZLOOWKHQEHDEOHWRUHFRYHULQHTXLW\RQO\LIKHLVDEOHWRSURYHWKDWKH
ORDQHG WKH PRQH\ IRU WKHH[SUHVVSXUSRVHRI HQDEOLQJ WKHPLQRU WR EX\ QHFHVVDULHV DQGWKDW KH LQ IDFW GLGVR
/HZLVY$OOH\QH 7/5
7KH  $FW V SURYLGHV 1RWKLQJ LQ WKLV VHFWLRQ VKDOO EH WDNHQ WR SUHMXGLFH DQ\ RWKHU UHPHG\
DYDLODEOHWRWKHSODLQWLII7KHSODLQWLIIPLJKWUHO\RQWKHHTXLWDEOHGRFWULQH ZKLFKUHTXLUHGDIUDXGXOHQWPLQRUWR
UHWXUQSURSHUW\ZKLFKKHKDGREWDLQHGE\GHFHSWLRQDQGZKLFKZDVVWLOOLGHQWLILDEOHLQKLVSRVVHVVLRQ5/HVOLH
/WGY6KLHOO >@.%&$EXWLWLVQRWFOHDUWKDWWKHUHZRXOGEHDQ\DGYDQWDJHLQGRLQJVRVLQFHWKH
UHPHG\XQGHUVHFWLRQDSSHDUVWRRYHUODSWKHHTXLWDEOHUHPHG\DQGGRHVQRWUHTXLUHSURRIRIIUDXG
*XDUDQWHH RI D PLQRUV FRQWUDFW 6HFWLRQ  RI WKH $FW SURYLGHV WKDW D JXDUDQWHH RI D PLQRUV
FRQWUDFW LV QRW XQHQIRUFHDEOH DJDLQVW WKH JXDUDQWRU PHUHO\ EHFDXVH WKH FRQWUDFW PDGH E\ WKH PLQRU LV
XQHQIRUFHDEOHDJDLQVWKLPRQWKHJURXQGWKDWKHLVDPLQRU7KHVHFWLRQGRHVQRWDSSO\LIWKHFRQWUDFWPDGHE\
WKH PLQRU LV XQHQIRUFHDEOH DJDLQVW KLP IRU VRPHRWKHU UHDVRQIRU H[DPSOH PLVUHSUHVHQWDWLRQ RU GXUHVVE\ WKH
DGXOWSDUW\,QVXFKDFDVHWKHJXDUDQWRUZRXOGQRWEHERXQG

F0(17$/,1&203(7(176
7KHDQFLHQWUXOHRIWKHFRPPRQODZZDVWKDWDOXQDWLFFRXOGQRWVHWXSKLVRZQLQVDQLW\WKRXJKKLVKHLU
PLJKW VR DV WR DYRLG DQ REOLJDWLRQ ZKLFK KH KDG XQGHUWDNHQ %XW E\  3ROORFN &% ZDV DEOH WR VD\ LQ
GHOLYHULQJWKHMXGJPHQWRIWKH&RXUWRI([FKHTXHU&KDPEHULQ0RXOWRQY&DPURX[([WKDWWKHUXOHKDG
LQ PRGHUQ WLPHV EHHQ UHOD[HG DQG XQVRXQGQHVV RI PLQG ZRXOG QRZ EH D JRRG GHIHQFH WR DQ DFWLRQ XSRQ D
FRQWUDFWLILWFRXOGEHVKRZQWKDWWKHGHIHQGDQWZDVQRWRIWKHFDSDFLW\WRFRQWUDFWDQGWKHSODLQWLIINQHZLW
&I,PSHULDO/RDQ&RY6WRQH >@4%&$6HFWLRQRIWKH6DOHRI*RRGV$FWPDNHVWKHVDPH
SURYLVLRQIRUSHUVRQVZKRDUHLQFRPSHWHQWWRFRQWUDFWE\UHDVRQRIPHQWDOLQFDSDFLW\DVIRUPLQRUVVHHDERYH
$OXQDWLFVRIRXQGE\LQTXLVLWLRQZDV KHOGWREHLQFDSDEOHRIPDNLQJDYDOLGLQWHUYLYRVGLVSRVLWLRQRI
SURSHUW\DOWKRXJKKHFRXOGPDNHDYDOLGZLOOVLQFHWKLVZRXOGEHLQFRQVLVWHQWZLWKWKHSRVLWLRQRIWKH&URZQ
XQGHUWKH/XQDF\$FWV5H:DONHU >@&K3UHVXPDEO\WKHSRVLWLRQRIDOXQDWLFVRIRXQGZLWKUHVSHFW
WRFRQWUDFWVQRWHIIHFWLQJLQWHUYLYRVGLVSRVLWLRQVRIKLVSURSHUW\ZDVWKHVDPHDVWKDWRIDOXQDWLFQRWVRIRXQG
WKDW LV KH ZRXOG EH ERXQG XQOHVV KH FRXOG VKRZ WKDW KH ZDV QRW LQ IDFW RI FDSDFLW\ WR FRQWUDFW DQG WKDW WKH
SODLQWLII NQHZ LW 7KH /XQDF\ $FWV KDYH EHHQ UHSHDOHG EXW DQ RUGHU XQGHU WKH 0HQWDO +HDOWK $FW  PD\
KDYHWKHVDPHHIIHFWDVDILQGLQJRIOXQDF\

G,172;,&$7('3(56216
7KHDXWKRULWLHVDUHVFDQW\EXWLQ*RUHY*LEVRQ0 :(5LWZDVKHOGWKDWD
FRQWUDFWPDGHE\DSHUVRQVRLQWR[LFDWHGDVQRWWRNQRZWKHFRQVHTXHQFHVRIKLVDFWLVQRWELQGLQJRQKLPLIKLV
FRQGLWLRQLVNQRZQWRWKHRWKHUSDUW\,WDSSHDUVKRZHYHUWKDWVXFKDFRQWUDFWLVQRWYRLGEXWPHUHO\YRLGDEOH
IRULWZDVKHOGLQ0DWWKHZVY%D[WHU/5([WKDWLIWKHGUXQNHQSDUW\XSRQFRPLQJWRKLVVHQVHV
UDWLILHVWKH FRQWUDFWKHLVERXQGE\LW
6HFWLRQRIWKH6DOHRI*RRGV$FWPDNHVWKHVDPHSURYLVLRQIRUSHUVRQVZKRDUHLQFRPSHWHQWWR
FRQWUDFWE\UHDVRQRIGUXQNHQQHVVDVIRUPLQRUVDQGWKHPHQWDOO\LQFRPSHWHQW1RGRXEWWKHVDPHUXOHZRXOG
EH DSSOLHG WR SHUVRQV LQWR[LFDWHG E\ GUXJV RWKHU WKDQ DOFRKROLF GULQN HLWKHU E\ D EURDG LQWHUSUHWDWLRQ RI
GUXQNHQQHVVRUDWFRPPRQODZ