ABSTRACT

WKHFLW\RI+\GHUDEDG FDSLWDORI$QGKUD3UDGHVK VWURQJO\UHEXWWHGWKHDOOHJD WLRQV OHYHOOHG DJDLQVW WKHP 7KH\DVVHUWHG WKDW WKH$QMXPDQKDG QRWKLQJ WR

GR ZLWK WKH IRUW\ SHRSOH VDLG WR EH UHVSRQVLEOH IRU WKH DWWDFNV DOPRVW DOO PHPEHUV RI WKH $QMXPDQ ZKR ZHUH ODWHU WDNHQ LQWR SROLFH FXVWRG\ 7KH DFWLQJ SUHVLGHQW RI WKH $QMXPDQ WKH \HDUROG 0DXODQD 0XKDPPDG ¶8VPDQ¶$OL0DOODQD GHFODUHGWKDWKLVRUJDQL]DWLRQ¶VWURQJO\FRQGHPQHGDQ\ VXFKDFWLYLW\WKDWZRXOGKXUWWKHUHOLJLRXVVHQVLELOLWLHVRISHRSOH· DQGRIIHUHG WRFRRSHUDWHZLWKWKHSROLFHLQWUDFNLQJGRZQWKHDWWDFNHUV +HZHQWRQWR DGGWKDWWKH$QMXPDQILUPO\¶EHOLHYHVLQSHDFH EURWKHUKRRG WUDQTXLOLW\ WROHU DQFHDQGFRPPXQDOKDUPRQ\DPRQJWKHIROORZHUVRIYDULRXVUHOLJLRQV· DQG WKDWLWKDGIXOOUHVSHFWIRUWKHODZRIWKHODQGDQGWKH,QGLDQ&RQVWLWXWLRQ +H FODLPHG WKDW WKH $QMXPDQ ZDV LWVHOI VHW XS IRU WKH SXUSRVH RI SURPRWLQJ EURWKHUKRRG XQLW\ DQG XQGHUVWDQGLQJ EHWZHHQ SHRSOH RI YDULRXV GLIIHUHQW IDLWKV DQG WKDW WKLV LW KDG DOZD\V EHHQ GRLQJ XVLQJ VWULFWO\ SHDFHIXOPHDQV VXFKDVRUJDQL]LQJLQWHUUHOLJLRXVGLDORJXHFRQIHUHQFHV *LYHQWKLVKLVWRU\RI WKH VHFW 0DOODQD FODLPHG WKDW WKH PHPEHUV RI WKH $QMXPDQ ¶DUH WKH ODVW SHUVRQV WR SUHDFK KDWUHG RU LQWROHUDQFH· +H DOVR FDWHJRULFDOO\ GHQLHG DQ\ DVVRFLDWLRQ ZLWK WKH 3DNLVWDQL VHFUHW VHUYLFHV DJHQF\ WKH ,QWHU6HUYLFHV ,QWHOOLJHQFH,6, DQGVDLGWKDWDOOHJDWLRQVRIWKH$QMXPDQ·VOLQNVZLWKLWDQG RILWVLQYROYHPHQWLQWKHDWWDFNVZHUH¶DFRQVSLUDF\· WRGHIDPH WKHJURXS +H FODLPHGWKDWLWZDVWKH$PHULFDQ&HQWUDO,QWHOOLJHQFH$JHQF\&,$WKDWKDG SRVVLEO\PDVWHUPLQGHGWKHEODVWV 6RPH$QMXPDQPHPEHUVFRPPHQWHGWKDW WKHLUVXFFHVVLQZLQQLQJFRQYHUWVWRWKHLUYHUVLRQRI,VODPKDGZRQWKHPWKH ZUDWKRI WKH ,QGLDQHVWDEOLVKPHQWDQG WKDW WKHHQWLUHFRQWURYHUV\DERXW WKH EODVWVZDVVLPSO\DPHDQVWRGHIDPHWKHPDQGSXWDKDOWWRWKHVSUHDGRIWKHLU IDLWK

%HVLGHV WKH KDJLRJUDSKLFDO OLWHUDWXUH SURGXFHG E\ LWV IROORZHUV OLWWOH KDV EHHQ ZULWWHQ RQ WKH GRFWULQHV DQG KLVWRU\ RI WKH $QMXPDQ 7KLV LQ ODUJH PHDVXUH DFFRXQWV IRU WKHZLGHO\ GLYHUJHQW LPDJHV RI WKHPRYHPHQW VRPH VHHLQJLWDVDIDQDWLFDOWHUURULVWRXWILW DQGRWKHUVDVDEHQLJQUHOLJLRXVJURXS FRPPLWWHG WR SURPRWLQJ KDUPRQLRXV UHODWLRQV EHWZHHQ SHRSOH RI GLIIHUHQW IDLWKV 7KLV FKDSWHU VHHNV WR H[SORUH WKH RULJLQV DQG GHYHORSPHQW RI WKH $QMXPDQ IRFXVLQJ LQ SDUWLFXODU RQ WKH FRPSOH[ KLVWRU\ RI LWV UHODWLRQVKLS ZLWKPDLQVWUHDP,VODPDQG+LQGXLVP 7KHZD\VLQZKLFKWKH$QMXPDQKDV RYHUWLPH VRXJKWWRUHODWHLWVHOI WRWKHUHOLJLRXVO\SOXUDOFRQWH[W LQZKLFKLW KDVRSHUDWHG ZHVKDOOVKRZ KDVKDGDGHWHUPLQLQJLPSDFWRQLWVPHWKRGVRI ZRUNLQJ RVFLOODWLQJEHWZHHQGLDORJXHDQGDFFRPPRGDWLRQ RQWKHRQHKDQG DQGDVVHUWLYHPLOLWDQF\DWYDULRXVSRLQWVLQWLPH RQWKHRWKHU ,QRWKHUZRUGV LWDUJXHVWKDWQHLWKHUFRQFLOLDWLRQQRUPLOLWDQF\LVLQKHUHQWWRWKH$QMXPDQ·V XQGHUVWDQGLQJRI,VODP 5DWKHU WKHREVHUYDEOHVKLIWVLQWKH$QMXPDQ·VVWDQFH YLVjYLV RWKHUIDLWKV SDUWLFXODUO\+LQGXLVP KDVODUJHO\EHHQDIXQFWLRQRILWV RZQSHUFHSWLRQVRI¶WKUHDWV· WR,VODPIURPDQDVVHUWLYH PLOLWDQW+LQGXLVP 7KH $QMXPDQKDVUHVSRQGHGWRWKHSHUFHLYHGWKUHDWVLQGLIIHUHQWZD\VRYHUWLPH 2QWKHRQHKDQG DVWKLVFKDSWHULOOXVWUDWHV LWKDVVRXJKWWRHQJDJHLQSHDFHIXO LQWHUIDLWKGLDORJXH ZKLFKLWFOHDUO\VHHVDVDPHDQVIRUWKHVSUHDGRILWVRZQ YHUVLRQ RI ,VODP $OWKRXJK LW LQVLVWV RQ WKH XOWLPDWH WUXWK RI LWV YHUVLRQ RI

,VODP LW UHFRJQL]HV WKH OLPLWHG WUXWK RI WKH +LQGX WUDGLWLRQ XVLQJ LW DV D PHDQV WR DVVHUW LWV FODLPV IRU WKH VXSHULRULW\ RI LWV RZQ XQGHUVWDQGLQJ RI ,VODP 2QWKHRWKHUKDQG ZKHQLWKDVVHHQ,VODPRU0XVOLPVDVXQGHUJUDYH ¶WKUHDW· LWKDVQRWKHVLWDWHGWRUHVRUWWRYLROHQWPHDQVLQDGGLWLRQWRPLOLWDQW UKHWRULF 7KLVGLDOHFWLFDOWHQVLRQEHWZHHQSHDFHIXOSUHDFKLQJDQGGLDORJXHDQG PLOLWDQF\KDVFKDUDFWHUL]HGWKH$QMXPDQIURPWKH OLIHRI LWV IRXQGHU 6LGGLT +XVVDLQ RQZDUGV 7KHDOOHJDWLRQVRI$QMXPDQPHPEHUVKDYLQJEHHQLQYROYHG LQUHFHQWYLROHQWDFWLYLWLHVPXVW WKHUHIRUH EHVHHQLQWKHEDFNJURXQGRIWKH ODUJHUKLVWRU\RIWKHPRYHPHQW

6LGGLT+XVVDLQ WKHIRXQGHURIWKH'HHQGDU$QMXPDQ 6D\\HG 6LGGLT+XVVDLQ WKH IRXQGHU RI WKH'HHQGDU$QMXPDQ ZDV ERUQ WR 6D\\HG¶$PLU+XVVDLQ DQGKLVZLIH6D\\HGD¶$PLQD LQDW%DODPSHW LQ WKH *XUPDWNDO WDOXTD RI WKH *XOEDUJD GLVWULFW WKHQ SDUW RI WKH 1L]DP·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

$VD\RXQJPDQ WKHKDJLRJUDSKLFDFFRXQWVWHOOXV 6LGGLT+XVVDLQGHYHO RSHGDJUHDWLQWHUHVWLQYDULRXVUHOLJLRQV DQGFDPHLQWRFRQWDFWZLWKVHYHUDO QRWHG6XILVDQG,VODPLFVFKRODUVRIKLVWLPH 7KHVHLQFOXGHG6KLEOL1X¶PDQL WKH QRWHG ,QGLDQ ¶DOLP %DED 7DMXGGLQ RI 1DJSXU 0DXODQD ¶$EGXOODK RI 7DPDSXU DQG=RKUD%L DQG0DXODQD0LU0XKDPPDG6D¶LGRI+\GHUDEDG )URPWKHODVWPHQWLRQHGKHWRRNEDL¶DW RUDQRDWKRILQLWLDWLRQLQWKH4DGUL 6XIL RUGHU ,Q LQ KLV¶SDVVLRQ· DV KH SXWV LW ¶WR VWXG\ WKH4XU¶DQ· KH MRLQHGWKH4DGLDQLEUDQFKRIWKHKHWHURGR[$KPDGL\\DFRPPXQLW\ FRQVLG HUHG EH\RQG WKH SDOH RI ,VODP IRU LWV EHOLHI WKDW LWV IRXQGHU 0LU]D*KXODP $KPDG ZDVDSURSKHWVHQWE\*RG DQGWKXVLWVGHQLDORIWKH,VODPLFEHOLHILQ WKH ILQDOLW\ RI WKH SURSKHWKRRGRI0XKDPPDG +H WRRN WKH RDWK RI DOOH JLDQFH DW WKH KDQGV RI WKH WKHQ KHDG RI WKH 4DGLDQL MDPD¶DW %DVKLUXGGLQ 0DKPXG$KPDG VRQRI0LU]D*KXODP$KPDG EXW IRXUWHHQ GD\V ODWHU KH UHQRXQFHGKLVPHPEHUVKLS DFFXVLQJWKH4DGLDQLVRIEHLQJNDILUVIRUFRQVLG HULQJWKH0LU]DDSURSKHW ,WLVOLNHO\WKDWDWWKLVWLPHKHPRYHGFORVHUWRWKH ULYDO/DKRUL EUDQFKRI WKH$KPDGLV ZKLFK VSOLW RII IURP WKHPDLQ$KPDGL MDPD¶DW LQ RQ WKH TXHVWLRQ RI WKH VWDWXV RI WKH 0LU]D 8QOLNH WKH 4DGLDQLV WKH /DKRULV OHG E\ WKH ZHOONQRZQ ,VODPLF VFKRODU 0DXODQD 0XKDPPDG ¶$OL LQVLVWHG WKDW WKH 0LU]D ZDV QRW D SURSKHW EXW VLPSO\ D PXMDGGLG ¶UHQHZHU RI WKH IDLWK· +H TXRWHG WKH ZHOONQRZQ WUDGLWLRQ DWWULEXWHGWR0XKDPPDGWKDWDWWKHHQGRIHYHU\,VODPLFFHQWXU\*RGZRXOG

VHQGDPXMDGGLG WRWKHZRUOGWRUHYLYHWKHIDLWK DQGFODLPHGWKDW WKH0LU]D ZDVWKHPXMDGGLG RIWKHIRXUWHHQWKFHQWXU\RIWKH,VODPLFFDOHQGDU ,WLVOLNHO\ WKDW6LGGLT+XVVDLQIRUPDOO\MRLQHGWKH/DKRULMDPD¶DW IRULQKLVWUDFW$¶DGDL ,VODP ¶(QHPLHVRI,VODP· GDWLQJIURPWKHPLGV KHZURWHWKDWKHDQG PHPEHUVRIKLV$QMXPDQEHOLHYHGWKDW0LU]D*KXODP$KPDGKDGEHHQVHQW E\ *RG DV WKH PXMDGGLG RI WKH IRXUWHHQWK FHQWXU\ LQGLFDWLQJ WKDW KH FRQWLQXHGWRKROGWKH0LU]DLQJUHDWHVWHHPGHVSLWHKDYLQJSDUWHGZD\VZLWK WKH4DGLDQLV ,Q RQH RI KLV HDUO\ZULWLQJV GDWLQJ IURP WKH ODWH V KH ZURWH WKDW DIWHU KH OHIW WKH 4DGLDQL MDPD¶DW KH VSHQW VRPH WLPH LQ WKH FRPSDQ\RI0DXODQD0XKDPPDG¶$OL DQG0DXOYL.KZDMD.DPDOXGGLQ WKH OHDGLQJ OLJKWV RI WKH /DKRUL EUDQFK RI WKH $KPDGLV ,Q 6LGGLT +XVVDLQ·V HYHQWXDOSDUWLQJRIZD\VZLWKWKH/DKRULV KLVRZQSHUVRQDOFODLPVWRDVSHFLDO UHODWLRQVKLSZLWK*RG ZKLFKZHUH DW RGGVZLWK /DKRUL GRFWULQHV VHHP WR KDYHSOD\HGDFHQWUDOUROH IRUKHLVVDLGWRKDYHFODLPHGWREHWKH¶SURPLVHG DZDLWHGRQH· PXQWD]DUPDZ¶XG IRUHWROGE\0LU]D*KXODP$KPDG WKURXJK ZKRPWKH+RO\6SLULWUXKLKDTZRXOGVSHDNWRWKHZRUOG

7KHODXQFKLQJRIWKHPLVVLRQ ,QWKHHDUO\KDJLRJUDSKLFDFFRXQWVRI6LGGLT+XVVDLQZULWWHQE\KLVIROORZHUV DQGHYHQLQKLVRZQZULWLQJV ZHKHDUOLWWOHRIKLVDFWLYLWLHVWLOO ZKHQKH SXEOLFO\GHFODUHGZKDWKH FODLPHGZDVKLV GLYLQHPLVVLRQ DQG HVWDEOLVKHG WKH 'HHQGDU$QMXPDQWKH5HOLJLRXV$VVRFLDWLRQ 7KHVZHUHDFUXFLDOSHULRG IRU +LQGX²0XVOLP UHODWLRQV LQ ,QGLD ZLWQHVVLQJ D PDUNHG ULVH RI +LQGX²0XVOLPFRQIOLFW DIWHU DEULHI VSHOORI LQWHUFRPPXQDOKDUPRQ\ LQ WKH FRXUVHRI WKH VKRUWOLYHG.KLODIDW DQG1RQ&RRSHUDWLRQPRYHPHQWV ,QHDUO\ WKH $U\D 6DPDM D PLOLWDQW DQG RSHQO\ DQWL0XVOLP +LQGX FKDXYLQLVW JURXS ODXQFKHGDPDVVLYHGULYHWREULQJLQWRWKH+LQGXIROGKXQGUHGVRIWKRX VDQGVRI5DMSXW0XVOLPVLQWKHQRUWKZHVWHUQGLVWULFWVRIWKH8QLWHG3URYLQFHV 6RRQ WKH FDPSDLJQ ZKLFK WKH$U\DV UHIHUUHG WR DV WKH VKXGGKL DQGRODQ ¶WKH 3XULILFDWLRQ0RYHPHQW· ² DQG UHIHUUHG WR E\0XVOLPV DV WKH WDKULNL LUWLGDG ¶WKH $SRVWDV\0RYHPHQW·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¶ORZHU· FDVWHV

7KLVLVWKHILUVWHYLGHQFHWKDWZHKDYHRIWKHEHJLQQLQJRIZKDWZDVWREHFRPH KLVOLIHORQJLQYROYHPHQWLQPLVVLRQDU\ZRUNDQGLQFRPEDWLQJWKH$U\D6DPDM $IWHU VSHQGLQJ VRPH WLPH LQ WKH QRUWK ZLWK WKH /DKRUL $KPDGLV ZLWK

PHPEHUV RI WKH $KOL4XU¶DQ DQGZLWK1DLUDQJ DQG KLV 7DEOLJKL JURXS 6LGGLT +XVVDLQ UHWXUQHG WR +\GHUDEDG DQG HVWDEOLVKHG D PHGLFDO SUDFWLFH

WKHUH %\ WKLV WLPHDJJUHVVLYHFRPPXQDOSROLWLFV ZKLFKKDGEHFRPH VXFKD FKDUDFWHULVWLF IHDWXUH RI QRUWK ,QGLDQ OLIH KDG PDGH LWV ZD\ LQWR WKH VWDWH 5XOHG E\ D 0XVOLP 1L]DP DQG D VPDOO IHXGDO FODVV ² ODUJHO\ 0XVOLP ² +\GHUDEDGZDV D+LQGXPDMRULW\ VWDWHZLWK D0XVOLPSRSXODWLRQRIKDUGO\ RQHLQWHQ %\WKHVUHVHQWPHQWDJDLQVWWKHSUHGRPLQDQFHRI0XVOLPVLQ WKHXSSHUHFKHORQVRIJRYHUQPHQWVHUYLFHLQFUHDVLQJO\OHGDULVLQJJHQHUDWLRQ RIPLGGOHFODVV+LQGXVWRWKHSDWKRIFRQIURQWDWLRQ ZKLFKVRRQDVVXPHGWKH IRUP DVHOVHZKHUH LQ ,QGLD RI+LQGX²0XVOLPDQWDJRQLVP ,Q UHVSRQVH WR WKLV JURZLQJ +LQGX DJJUHVVLYHQHVV WKH 0DMOLVL ,WWLKDG XO0XVOLPLQ &RPPLWWHHIRUWKH8QLW\RI0XVOLPVZDVVHWXSLQ ZLWKLWVKHDGTXDU WHUV DW+\GHUDEDG ZLWK WKHDYRZHGSXUSRVHRISURWHFWLQJ0XVOLP LQWHUHVWV UHIOHFWLQJ DV¶$ODP VD\V ¶D FRQFHUQ ZLWK WKH JURZLQJ GLVVDWLVIDFWLRQ RI WKH +LQGXVZLWKWKHJRYHUQPHQW· ,QWKH$U\D6DPDM ZKLFKWLOOWKHQKDG EHHQ OLPLWHGE\ LWVSUHGRPLQDQWO\QRUWK ,QGLDQEDVH WXUQHG LWV DWWHQWLRQ WR +\GHUDEDG ZKHUHLWKDGDOUHDG\HVWDEOLVKHGDVPDOOSUHVHQFHLQWKHODWHQLQH WHHQWKFHQWXU\ %HJLQQLQJ LQ D VHULHVRI FODVKHV WRRNSODFHEHWZHHQ WKH$U\DV ZKRVDZWKHPVHOYHVDVGHIHQGHUVRI WKH+LQGXV DQGWKH1L]DP·V IRUFHV 6HYHUDO EUDQFKHV RI WKH 6DPDM ZHUH QRZ VHW XS LQ WKH 1L]DP·V 'RPLQLRQV ,QWKH$U\DVODXQFKHGDPDVVVWUXJJOHDORQJZLWKWKH+LQGX 0DKDVDEKD DJDLQVW WKH1L]DP ZKLFK FDUULHG RQ IRU VHYHUDOPRQWKV LQ WKH FRXUVHRIZKLFKVRPH$U\DVDQGRWKHU+LQGXVZHUHDUUHVWHG 7KH$U\D DJLWDWRUV DFFRUGLQJWRRQHUHSRUW DUHVDLGWRKDYHH[KRUWHGWKHORFDO+LQGXV WR¶ULVHDQGILJKWWKH0XVOLPV NLOOWKHPDQGRYHUWKURZWKHP DV WKHFRXQWU\ EHORQJHG WR WKH+LQGXV DQG QRW WKH0XVOLPV·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¶7KH UXOHU DQG WKH WKURQH DUH WKH V\PEROV RI WKH SROLWLFDO DQG FXOWXUDO ULJKWV RI WKH 0XVOLP FRPPXQLW\ LQWKHVWDWH· DQGWKDW WKHUHIRUH ¶WKLV VWDWXVRI WKH0XVOLPVPXVW FRQWLQXH IRUHYHU· %HJLQQLQJ LQ WKH ODWH V ¶D ZDUOLNH DWPRVSKHUH· EHWZHHQ+LQGXVDQG0XVOLPVVHHPVWRKDYHWDNHQKROGRI+\GHUDEDG

'HHSO\LQYROYHGDVKHZDVE\WKLVWLPHZLWKYDULRXV0XVOLPPRYHPHQWV KDYLQJ VSHQWPDQ\\HDUV LQ WKHFRPSDQ\RI6XILV DQG OHDGLQJ¶XODPD 6LGGLT +XVVDLQ VHHPV WR KDYH EHHQ JUHDWO\ DIIHFWHG E\ ZKDW KH VDZ DV WKH JUDYH WKUHDWVWR,VODPDQG0XVOLPLQWHUHVWVDWWKHKDQGVRIDJJUHVVLYH+LQGXJURXSV DW WKLV WLPH /DXQFKLQJ D ODUJHVFDOHPLVVLRQDU\ FDPSDLJQ DLPHG DW QRWKLQJ OHVVWKDQWKHFRQYHUVLRQRIDOOWKH+LQGXVRI,QGLDWR,VODPVXJJHVWHGLWVHOIWR KLPDVWKHQHHGRIWKHKRXU 7KLVZDVWREHFRPHKLVOLIH·VPDMRUYRFDWLRQ LQ

UHVSRQVH KH DVVHUWHG WR D GLYLQH FRPPDQG ZKLFK KH FODLPHG WR KDYH UHFHLYHG

0LVVLRQDU\ZRUNDPRQJWKH/LQJD\DWV 6LGGLT+XVVDLQ·VPLVVLRQDU\DSSURDFKVHHPVWRKDYHEHHQGHHSO\PRXOGHGE\ KLV FORVH DVVRFLDWLRQ ZLWK VRPH OHDGLQJ 6XILV RI KLV GD\ DQG ZLWK WKH KHWHURGR[$KPDGLV /LNHFHUWDLQ6XILVDQGWKH$KPDGLV KHVRXJKWWRSUHVHQW ,VODP QRW DV D UDGLFDO DOWHUQDWLYH WR EXW UDWKHU DV WKH IXOILOPHQW RI +LQGXLVP +LV VWUDWHJ\FRQVLVWHGRIGUDZLQJSDUDOOHOV DQG IRFXVLQJRQ WKH VLPLODULWLHVWKDWKHSHUFHLYHGEHWZHHQKLVXQGHUVWDQGLQJRI,VODPDQGYDULRXV VWUDQGV LQ +LQGXLVP DUJXLQJ WKDW YDULRXV +LQGX ILJXUHV KDG SUHGLFWHG WKH DUULYDORI0XKDPPDGDV*RG·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

RI 6KLYDZRUVKLSSHUV OLYLQJPDLQO\ LQ WKH.DQQDGDVSHDNLQJGLVWULFWV RI WKH 1L]DP·V 'RPLQLRQV DQG LQ QHLJKERXULQJ 0\VRUH $FFRUGLQJ WR $QMXPDQ VRXUFHV RQFH ZKLOH RQ D WULS WR WKH VKULQH RI .RGHNNDO %DVDSSD D 6XIL KLJKO\YHQHUDWHGE\WKHORFDO/LQJD\DWV KHUHSRUWHGO\KHDUGWKDWWKH6XILKDG SUHGLFWHG WKH DUULYDO RI D VDYLRXU RI WKH/LQJD\DWV LQ WKH IRUPRI¶'HHQGDU &KDQQDEDVDYHVZDUD· ZKR ZRXOG EH ERUQ LQ D 0XVOLP IDPLO\ DQG ZRXOG ¶PDNH WKH +LQGXV DQG 0XVOLPV RQH· 7KLV KH ZDV ODWHU WR FODLP ZDV D SURSKHF\ KHUDOGLQJ KLV RZQ DUULYDO %\ WKLV WLPH DV KH ZULWHV KH KDG DOUHDG\GHGLFDWHGKLVOLIHWRWKHFDXVHRIWKHVSUHDGRI,VODP DQG QRWLQJWKH ¶VSHFLDO IHDWXUHV·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¶2K+LQGXV· KHGHFODUHG ¶,DPWKH JXUX ZKRKDVEHHQSUHGLFWHGLQ \RXUVFULSWXUHV· %HVLGHVFODLPLQJWREH'HHQGDU&KDQQDEDVDYHVZDUD KHDOVR DWWKLVWLPHGHFODUHGKLPVHOIWREHWKHNDONLDYDWDU WKHWHQWKDQGODVWLQFDUQD

WLRQ RI WKH+LQGX GHLW\ 9LVKQX ZKR WKH+LQGXV EHOLHYH ZRXOG DUU LYH WR EDQLVKPLVHU\ IURP WKHZRUOG SXW DQ HQG WR WKH¶HYLO DJH· RI NDOL \XJ DQG KHUDOGWKHDUULYDORIWKH¶DJHRIWUXWK· VDW\XJ 7KLV KHVDLG KDGEHHQUHYHDOHG WRKLPE\*RG+LPVHOI ZKRKDGWROGKLPWKDWKHZRXOGHVWDEOLVKWKHVDW\XJ LQ $VKHSXWLW ¶6KUL%KDJZDQKDVLQIRUPHGPHWKDW,ZLOODSSHDUDVWKH NDONLDYDWDU 7KHNDOL\XJ LVVRRQWREHDEROLVKHGDQGWKHVDW\XJ LQDXJXUDWHG· 6KRUWO\ DIWHU WKDW KH VDLG LQ WKH VHFRQG KDOI RI WKH IRXUWHHQWK ,VODPLF FHQWXU\ WKH'D\RI-XGJHPHQWTD\DPDWVKDOOFRPH ,QKLV$¶DGDL,VODP D WUDFWSHQQHGWRFRQYLQFH0XVOLPVRIKLVFODLPV 6LGGLT+XVVDLQZURWHWKDWLW ZDVDVDUHVSRQVHWRWKHVXFFHVVHVRIWKH$U\D6DPDMLQEULQJLQJWRWKH+LQGX IROG VHYHUDO WKRXVDQG0XVOLPV LQ QRUWKHUQ ,QGLD WKDW KH UHFHLYHG D GLYLQH LQVSLUDWLRQLQIRUPLQJKLPWKDW¶*RGKDGZLOOHGWKDWWKHJUHDWHVW LQFDUQDWLRQ DYDWDURIWKH+LQGXVVKRXOGHPHUJHWRGHFODUHWRWKH+LQGXVWKDWWKHLURQO\ KRSH IRU VDOYDWLRQ OD\ LQFRQYHUWLQJ WR,VODP· (OVHZKHUH KHZURWH WKDW LQ WKHZDNHRIWKHVKXGGKL PRYHPHQWRIWKH$U\DV,QGLDKDGZLWQHVVHG¶KHLQRXV DVVDXOWV· RQ,VODPDQGWKHSHUVRQRI0XKDPPDG ¶*RG· KHVDLG ¶ZDVZDWFKLQJ WKLV DQGKDGGHFLGHGWRWDNHUHYHQJHE\PDNLQJDOO,QGLD0XVOLP· +HQRZ DVVXPHG WKHQDPHRI¶6LGGLT'HHQGDU&KDQQDEDVDYHVZDUD· DQG LQGRLQJ VR KHFODLPHGWKDWKHZDVVLPSO\IXOILOOLQJWKHSURSKHFLHVFRQWDLQHGLQWKHKRO\ ERRNVRIWKH/LQJD\DWVDQGWKH+LQGXV ZKLFK KHFODLPHG KDGSUHGLFWHGKLV DUULYDODQGKDGDOVRLQGLFDWHGWKHWUXWKRI,VODP ,QKLVZRUGV

$OODK KDV DSSRLQWHG WKHLU ELJJHVW DYDWDU LQ RUGHU WR PDNH WKHP 0XVOLPE\SRLQWLQJRXWWKHGLUHFWLRQVFRQWDLQHGLQWKHERRNVRIWKH HQHPLHVRI WKH0XVOLPV GXVKPDQDQL LVODP DQGKH >WKLV DYDWDU@KDV DQQRXQFHG ¶2K+LQGXV,I\RXVHHNVDOYDWLRQWKHQEHFRPH0XVOLP EHFDXVH\RXFDQVHHWKDWWLOO\RXUDYDWDUVUHFLWHGWKHFUHHGRIFRQIHV VLRQNDOLPDRIRXU0DVWHU 0XKDPPDG SHDFHDQG$OODK·VEOHVVLQJV EHXSRQKLP WKH\GLGQRWJDLQVDOYDWLRQ VRKRZFDQ\RXEHVDYHGLI \RXGRQRWGRVR"·

7KLVPHWKRGRIDVVHUWLQJWKHWUXWKRIKLVYHUVLRQRI,VODPDVDIXOILOPHQWRI WKHHVFKDWRORJLFDOKRSHVRIWKH/LQJD\DWVZDVIXUWKHUGHYHORSHGLQDSDPSKOHW ZULWWHQLQWKHPLGVDGGUHVVHGVSHFLILFDOO\WRWKH/LQJD\DWV +HUH 6LGGLT +XVVDLQGHFODUHGWKDWWKHWLPHKDGFRPHIRUWKHHQWLUHZRUOGWREHXQLWHGDV RQHRQWKHEDVLVRI,VODP +HFODLPHGWKDWLIWKH0XVOLPVZHUHRQO\WRIXOILO WKHLU UHOLJLRXVGXWLHV¶DOO WKHSHRSOHRI WKHZRUOGDUH UHDG\ WR IDOO LQWR WKHLU ODS· ,QSDUWLFXODU KHVDLG WKH/LQJD\DWV ZKRPKHHVWLPDWHGQXPEHUHGVRPH PLOOLRQ ZHUHULSHIRUFRQYHUVLRQWR,VODP EHFDXVH LQKLVZRUGV WKH\ZHUH ¶SLWLDEOH SRZHUOHVV EHUHIW RI IULHQGV· DQG¶WKHLU VRXUFHRI VXSSRUWKDV DOZD\V EHHQ WKH0XVOLP FRPPXQLW\· +H GHVFULEHG WKH /LQJD\DWV DV DQ RSSUHVVHG JURXS DZDLWLQJ DPHVVLDKZKRZRXOGGHOLYHU WKHP IURP WKHSHUVHFXWLRQRI WKH %UDKPLQV DQG VDZ KLPVHOI DV KDYLQJ EHHQ DSSRLQWHG E\ *RG IRU WKDW SXUSRVH $VKHSXWLW

7KLV FRPPXQLW\ LV FU\LQJ RXW VD\LQJ ¶2K 0HUF\ RI WKH :RUOGV UDKPDW DO LO¶DODPLQ <RX DUHPRVWPHUFLIXO 7DNHSLW\RQXV :H DUHZLWKRXWDQ\VXSSRUWDQGKHOSHUV 6DYHXVIURPWKHFOXWFKHVRIRXU RSSUHVVRUV DQG WDNHXV LQWR\RXU UHIXJH )RU WKRXVDQGVRI \HDUV WKH ZRUVKLSSHUVRI9LVKQXKDULZDOHKDYHRSSUHVVHGXVDQGRXUQHLJK ERXUV WKH'UDYLGLDQFRPPXQLWLHV DQGKDYHUHGXFHGXVWRWKHVWDWXV RI6KXGUDV 7KH\VQDWFKHGDZD\RXUSROLWLFDOSRZHUDQGIRUFHGXVWR IOHH WR WKH IRUHVWV ZKHUH IRU WKRXVDQGV RI \HDUV ZH URDPHG WKH MXQJOHVOLNHEDUEDULDQV·

(PSOR\LQJWKHORJLFVRFHQWUDOWRWKHGLVFRXUVHRIWKHHPHUJLQJ'UDYLGLDQ DQG'DOLWPRYHPHQWVRIKLV WLPHV ZKLFK VDZ%UDKPLQ$U\DQKHJHPRQ\DV WKHVRXUFHRIWKHSOLJKWRIWKH¶ORZHU· FDVWHV 6LGGLT+XVVDLQWKHQZHQWRQWR VXJJHVWWKDWLWZDV,VODPWKDWKDGKLVWRULFDOO\SOD\HGDFUXVDGLQJUROHLQOLEHU DWLQJWKHGRZQWURGGHQFDVWHVIURPWKHVKDFNOHVRIFDVWHRSSUHVVLRQ DUROHWKDW LWFRXOGRQFHDJDLQSOD\LQPRELOL]LQJWKH/LQJD\DWVDQGRWKHU6KLYDZRUVKLS SLQJ ¶ORZHU·FDVWH JURXSV DJDLQVW WKH KHJHPRQ\ RI WKH %UDKPLQV WKH ZRUVKLSSHUVRI9LVKQXKDULZDOH 7KXV KHDGGHG

7KH/LQJD\DWVQRZWHOOXV ¶6RPHHLJKWKXQGUHG\HDUVDJR ZKHQWKH 0XVOLPVDUULYHGLQWKH'HFFDQDQGHVWDEOLVKHGWKHLUSROLWLFDOSRZHU WKH\KHOSHGXV WRULVHDJDLQDQG ZLWK WKHLUKHOSDQG LQ WKH IDFHRI WKHRSSRVLWLRQRIWKHZRUVKLSSHUVRI9LVKQX ZHVHWXSODUJHWKURQHV VLQJKDVDQ LQ PDQ\ WRZQV EXW QRZ XQIRUWXQDWHO\ RXU KHOSHUV >0XVOLPV@KDYHEHHQRXVWHGIURPSRZHU·

7KHPHVVDJH WKHQ LVFOHDU WKH/LQJD\DWVPXVWMRLQKDQGVZLWKWKH0XVOLPV DQGDFWLYHO\ZRUNWRUHHVWDEOLVK0XVOLPSROLWLFDOSRZHULIWKH\DUHWREHDEOH WR HIIHFWLYHO\ FRXQWHU WKH IRUFHV RI %UDKPLQLFDO UHYLYDOZKLFK DUH DOO VHW WR UHGXFH WKHP RQFHPRUH WR WKH VWDWXVRI VODYHV 6LGGLT+XVVDLQFODLPHGWKDW WKH'UDYLGLDQVZHUH EHLQJ UDSLGO\ DEVRUEHG LQWR WKH IROG RI9DLVKQDYLVP DV SDUWRIDFRQVSLUDF\RQWKHSDUWRI9LVKQXZRUVKLSSLQJ¶KLJK·FDVWH+LQGXVWR HQVODYH WKHP 2Q WKH RWKHU KDQG WKH 'UDYLGLDQV ZHUH KH VDLG DOVR EHLQJ WDUJHWHGIRUFRQYHUVLRQE\WKH&KULVWLDQPLVVLRQDULHVDQGWKH$U\D6DPDMLVWV 7KHWLPHZDVQRWIDURII KHSUHGLFWHG ZKHQWKHHQWLUH'UDYLGLDQUDFHPLJKW ILQDOO\EHH[WLQFW ,I WKLVKDSSHQHG WKH/LQJD\DWVZRXOGEH¶IRUFHG LQWR IUHH ODERXUEHJDU· E\WKH%UDKPLQV DIRUPRIVRFLDOVODYHU\WKDWKDGEHHQLPSRVHG RQWKH'UDYLGLDQVIRUFHQWXULHV ,QWKLVFRQWH[W 6LGGLT+XVVDLQVDZDJOLPPHU RIKRSHIRUWKH/LQJD\DWV DQGZURWH

>7KH /LQJD\DWV VD\@¶2XU RQO\ VRXUFH RI KRSH LV WKH SUHGLFWLRQ LQ RXU VDFUHG VFULSWXUHV WKDW RQH GD\ D VDYLRXU ZLOO DSSHDU ZKR ZLOO GHOLYHUXVIURPDOORXUZRHVDQGZLOOWDNHXVWRWKHSLQQDFOHRIJORU\ DQGZLOOPDNHXVWULXPSKRYHUDOORXUHQHPLHV +HZLOOFRPHLQWKH

IRUP RI'HHQGDU&KDQQDEDVDYHVZDUD ZKR LQ DFFRUGDQFHZLWK WKH SUHGLFWLRQVRI0DXQHVZDUD ZLOOPDNHWKH+LQGXVDQGWKH0XVOLPV RQH·

6LGGLT+XVVDLQWKHQZHQWRQWRFODLPWKDWLWZDVKHZKRKDGEHHQSURSK HVLHG DERXW LQ WKH /LQJD\DW VFULSWXUHV DQG E\ VRPH VHYHQW\ PHGLHYDO 3XUDQWKDQDUVRUVDLQWVRIWKH/LQJD\DWWUDGLWLRQDVWKHZRXOGEHVDYLRXURIWKH /LQJD\DWV 'HHQGDU&KDQQDEDVDYHVZDUD DQGWKDWQRZWKHRQO\ZD\IRUVDOYD WLRQ IRU WKHFRPPXQLW\ZDVE\ IROORZLQJKLV LQVWUXFWLRQVDQGFRQYHUWLQJWR ,VODP :KDWLVLQWHUHVWLQJDERXW6LGGLT+XVVDLQ·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¶DFWXDOO\$UDEE\ UDFH· DQG VR¶DUHQHLJKERXUVDQG LQPDWWHUV UHOLJLRXV YHU\ FORVHWRWKH0XVOLPV·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¶VRPHELDVHGSHRSOH· ZKRKDGPLVOHGWKHPDQGFUHDWHGKDWUHGEHWZHHQWKHP DQGWKH0XVOLPV +RZHYHU KHKRSHG QRZWKDWKHKDGDSSHDUHGDVDQDYDWDU RI&KDQQDEDVDYHVZDUDWKH/LQJD\DWVZRXOG¶UHDOLVHWKHLUUHDOURRWV·

,Q DQRWKHU ERRNOHW HQWLWOHG 'HHQGDU &KDQQDEDVDYHVZDUD 6LGGLT +XVVDLQ VRXJKWWRLPSUHVVXSRQWKH/LQJD\DWVDVZHOODVRWKHU+LQGXJURXSVWKHWUXWK RI KLV FODLPV WR EH WKH PXFKDZDLWHG PHVVLDK SURSKHVLHG LQ WKHLU DQFLHQW WH[WV +H ZURWH WKDW WKH YDULRXV +LQGX VFULSWXUHV VSHDN RI 'HHQGDU &KDQQDEDVDYHVZDUD EHLQJ VHQW E\*RG WR XQLWH WKHZRUOG EHDULQJ ILIW\VL[ ¶ERGLO\ VLJQV· DQG FRPLQJ DW D WLPH ZKHQ QLQHW\VL[¶HYLGHQFHV· ZRXOG EH DSSDUHQW¶LQ WKHHDUWK DQG WKH VNLHV· $OO WKHVH KHDUJXHG KDGEHHQ IXOILOOHG ZLWKKLVDUULYDO +HFODLPHGWKDWWKH+LQGXDQG/LQJD\DWVFULSWXUHVSUHGLFW WKDW WKURXJK 'HHQGDU &KDQQDEDVDYHVZDUD ¶WKH HQWLUH +LQGXVWDQ ZLOO WXUQ 0XVOLP· 7KLV KRZHYHU ZLOO QRW EH E\ JHQWOH SHUVXDVLRQ DORQH ,W ZLOO EH

DFFRPSDQLHG E\ PXFK WXPXOW DQG FRQIOLFW 'HHQGDU &KDQQDEDVDYHVZDUD DORQJZLWK KLV DUP\RI 3DWKDQ IROORZHUV ZLOO KH FODLPHG WKDW WKH/LQJD\DW VFULSWXUHV IRUHWHOO ¶HPSW\ WKH WUHDVXULHV RI WKH >WHPSOHV RI@ 7LUXSDWL DQG +DPSL· WKH ODWWHU DOOHJHGO\ FRQWDLQLQJ WKH ULFKHV WKDW EHORQJHG WR WKH OHJHQGDU\5DYDQD DQG WKHPRQNH\NLQJ9DOL 7KH\ VKDOO WKHQ HPEDUN RQ D PDVVLYHLFRQRFODVWLFVSUHHDQGHQVXUHWKDW¶WKHUHLVQRWRQHLGRO OHIWVWDQGLQJ LQ DQ\ WHPSOH· LQ WKH FRXQWU\ 'HHQGDU&KDQQDEDVDYHVZDUDZRXOG WKHQ VHW DERXW¶XQLWLQJDOO WKHFDVWHV >]DW@· E\PDNLQJDOO+LQGXV0XVOLP ,Q WKH SURFHVV WKH SRZHU RI WKH%UDKPLQVZLOO EH FRPSOHWHO\ GHVWUR\HG )LQDOO\ 'HHQGDU &KDQQDEDVDYHVZDUD ZLOO EH UHFRJQL]HG DV WKH ¶NLQJ RI NLQJV· EDGVKDKRQNHEDGVKDK %\WKLVWLPH 6LGGLT+XVVDLQDSSHDUVWRKDYHJDWKHUHGDVPDOOEDQGRIGLVFL

SOHV DOPRVWDOOIURP0XVOLPIDPLOLHV DWWUDFWHGWRKLPE\KLVPHVVLDQLFDSSHDO DQGFKDULVPD +HQRZVHWDERXWWUDLQLQJWKHPLQWKH4XU¶DQDVZHOODVLQWKH /LQJD\DWDQG+LQGXVFULSWXUHV WDNLQJWKHPDORQJZLWKKLPRQKLVPLVVLRQDU\ WRXUV RI /LQJD\DW YLOODJHV WHPSOHV DQG PRQDVWHULHV $PRQJ WKH SURPLQHQW GLVFLSOHVZKRPKHPDGHDW WKLVSRLQWZDVRQH$EX1D]LU9LWWKDO ZKRZDV HDUOLHU D SULHVW DW WKH 0DQYL /LQJD\DW PRQDVWHU\ DW %HOJDXP +H JDYH VHYHUDORIKLVGLVFLSOHV+LQGXQDPHVLQRUGHUWRPDNHWKHPPRUHDFFHSWDEOH WRWKH/LQJD\DWVDQGWKH+LQGXVDPRQJZKRPKHZDVSUHDFKLQJ 7KXV IRXU RIKLVFKLHIIROORZHUVZHUHJLYHQQDPHVRI+LQGXGHLWLHV²9\DV 6KUL.ULVKQD 1DUDVLPKD DQG 9LUDEKDGUD +H VW\OHG KLPVHOI DV 'KDUDPUDMD RU ¶WKH 5LJKWHRXV.LQJ· +HDQGKLVGLVFLSOHVGRQQHGFORWKHVZKLFKFORVHO\UHVHP EOHG WKRVH RI /LQJD\DW SULHVWV ² RFKUHFRORXUHG FORDNV JUHHQ WXUEDQV DQG ZKLWHOXQJLV 'HVSLWHWKHVHDWWHPSWVWRDFFXOWXUDWHKLVPHVVDJHLQDIRUPKH WKRXJKWZRXOGEHDFFHSWDEOHWRKLVDXGLHQFH 6LGGLT+XVVDLQ·VDSSHDOVWRWKH /LQJD\DWV WR DFFHSW KLP DV 'HHQGDU &KDQQDEDVDYHVZDUD DQG WR FRQYHUW WR ,VODPUDLVHGDVWRUPRISURWHVW ¶7KH+LQGXZRUOGZDVVKDNHQIURPLWVURRWV· ZKHQ 6LGGLT+XVVDLQ GHFODUHG KLV¶GLYLQHPLVVLRQ· WR WKH+LQGXV IROORZLQJ ZKLFK ¶PDQ\ +LQGXV LQFOXGLQJ WKHLU JXUXV>@ FRQYHUWHG WR ,VODP· VD\V DQ $QMXPDQ VRXUFH REYLRXVO\ H[DJJHUDWLQJ WKH VXFFHVV RI 6LGGLT +XVVDLQ·V PLVVLRQDU\ HIIRUWV DPRQJ WKH /LQJD\DWV $SSDUHQWO\ ZKLOH VRPH /LQJD\DWV DUH VDLG WR KDYH KHHGHG KLV FDOO DQG DFFHSWHG ,VODP DW KLV KDQGV VHYHUDO DWWHPSWV ZHUH PDGH RQ KLV OLIH E\ HQUDJHG /LQJD\DWV HJJHG RQ 6LGGLT +XVVDLQ DOOHJHG E\ HQUDJHG $U\D 6DPDMLVWV $FFRUGLQJ WR RQH DFFRXQW LQ DORQHKHZDVSK\VLFDOO\DWWDFNHGWZHQW\ILYHWLPHVLQDQHIIRUWWRHOLPL QDWH KLP +HZDV WR FODLP WKDW WKHVH DWWHPSWV IDLOHG EHFDXVHKH ZDV XQGHU GLYLQHSURWHFWLRQ

7KH$U\DV DFFRUGLQJ WRKLP URVH LQ IXULRXVSURWHVW DJDLQVWKLV HIIRUWV WR VSUHDG ,VODP DPRQJ WKH /LQJD\DWV ,Q D ELG WR GLVFUHGLW KLP DPRQJ WKH 0XVOLPV ZKRVHVXSSRUWKHKDGKRSHGIRULQKLVZRUNDPRQJWKH/LQJD\DWV WKH$U\DVRI/DKRUH DUH VDLG WRKDYHSXEOLVKHG DQ8UGX WUDFW HQWLWOHG1DTOL &KDQQDEDVDYHVZDUD<D.KDQMDUL=DOLP ¶7KH)DOVH&KDQQDEDVDYHVZDUDRU WKH 'DJJHURI WKH7\UDQW· DQGGLVWULEXWHG LW LQ WKH WKRXVDQGV DPRQJ0XVOLPV

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·V RZQPLVVLRQDU\ VWUDWHJ\ DPRQJ WKH /LQJD\DWV ,QUHVSRQVHWRWKHSXEOLFDWLRQRIWKHERRNOHWE\WKH$U\DV 6LGGLT+XVVDLQ

DQQRXQFHGDVXPRI5VWRDQ\RQHZKRFRXOGSURYHWKDWKHZDVDIDOVH FODLPDQW WR EHLQJ WKH 'HHQGDU &KDQQDEDVDYHVZDUD RI WKH /LQJD\DWV 7KH $U\DV WRRNXSWKHFKDOOHQJHDQG LQVWLWXWHGDFDVHDJDLQVWKLPLQ WKHFRXUWV DFFXVLQJKLPRIFUHDWLQJUHOLJLRXVGLVKDUPRQ\ 7KHFDVHODVWHGHLJKWGD\V DIWHU ZKLFK VRKHFODLPHG WKHFRXUWGHFLGHGWKDWKHKDG¶VROLGSURRI · RIEHLQJWKH UHDO'HHQGDU&KDQQDEDVDYHVZDUD 7KH$U\DV QRWWREHFRZHG DUHDFFXVHGRI KDYLQJ EULEHG VRPH0XVOLPV WR DUJXH WKH FDVH WKDW 6LGGLT+XVVDLQZDV DQ LPSRVWRU DQG WKDW KLV FODLPV HIIHFWLYHO\ SXW KLP EH\RQG WKH SDOH RI ,VODP 6LGGLT+XVVDLQODWHUZURWHWKDWWKHRSSRVLWLRQWRKLPE\FHUWDLQ0XVOLPV LQ DGGLWLRQ WR WKH $U\DV ZDV WR ODVW VHYHUDO \HDUV DIWHU ZKLFK GHVSDLULQJ DQG GLVLOOXVLRQHG KHGHFLGHGWRPLJUDWHWR<DJKHVWDQ LQWKH3DWKDQERUGHUODQGV IROORZLQJ LQ WKH IRRWVWHSV RI0XKDPPDG LQ KLV PLJUDWLRQ IURP0HFFD WR 0HGLQD

6LGGLT+XVVDLQ·VPLVVLRQDU\HIIRUWVDPRQJWKH+LQGXV ,W LV SRVVLEOH WKDW QRW ILQGLQJ D ZDUP UHVSRQVH WR KLV DSSHDOV DPRQJ WKH /LQJD\DWV 6LGGLT+XVVDLQQRZ WXUQHGKLV DWWHQWLRQ WRRWKHU+LQGX JURXSV +HUH WRR DVLQKLVGHDOLQJVZLWKWKH/LQJD\DWV KHVRXJKWWRSUHVHQW,VODPLQ VXFKDPDQQHUDVQRWWRQHJDWHWKH+LQGXWUDGLWLRQRXWULJKW 5DWKHU LWZDV JUDQWHGDOLPLWHGOHJLWLPDF\ EXWXVHGVLPSO\DVDPHDQVWRDVVHUWWKHLQKHUHQW VXSUHPDF\ RI 6LGGLT+XVVDLQ·V FODLPV DERXW KLV RZQ VHOI DQG KLV YHUVLRQ RI ,VODP $V LQ KLVPLVVLRQDU\ZRUN DPRQJ WKH /LQJD\DWV KHUH WRR ,VODPZDV SUHVHQWHGQRWDVWKHQHJDWLRQEXW UDWKHU DVWKHIXOILOPHQWRI+LQGXLVP <HW DV ZLOO EH VHHQ SUHVHQWO\ GHVSLWH DFFHSWLQJ WKH OHJLWLPDF\RI WKH +LQGX VFULS WXUHV D VWURQJ VWUDLQ RI RSSRVLWLRQ DQG DQLPRVLW\ FKDUDFWHUL]HG 6LGGLT +XVVDLQ·VDWWLWXGHWRZDUGVWKH+LQGXV ZKLFKZDVVRRQWREULQJKLPDQGKLV IROORZHUVLQWRFRQIOLFWZLWKWKH+LQGXVRI+\GHUDEDG :KDW DSSHDUV WRKDYH VSDUNHGRII D YHKHPHQWSURWHVW RQ WKHSDUW RI WKH

+LQGXVRI+\GHUDEDGDJDLQVWWKHDFWLYLWLHVRIWKH'HHQGDU$QMXPDQZDVWKH SXEOLFDWLRQ LQ RI 6LGGLT +XVVDLQ·V WZRYROXPH .DQQDGD ERRN -DJDW *XUX6DUZDUL¶$ODP LQZKLFKKH DUJXHG WKDW WKH3URSKHW0XKDPPDGZDV DFWXDOO\WKHNDONLDYDWDU ZKRVHDUULYDOKDGEHHQSUHGLFWHGLQWKHVFULSWXUHVRI

WKH+LQGXV DQGWKDWWKHVDOYDWLRQRIWKH+LQGXVWKHUHIRUHOD\LQFRQYHUWLQJWR ,VODP ,Q WKLV ERRN 6LGGLT+XVVDLQ FRQWHQGHG WKDW*RGKDG VHQW KLPRQ D VSHFLDO PLVVLRQ WR UHYHDO WKLV¶WUXWK· WR WKH+LQGXV $FFRUGLQJ WR $QMXPDQ VRXUFHV LQHDUO\WKLUW\WKUHHJXUXVRI,QGLDSXWIRUZDUGWKHFODLPWREH WKH MDJDW JXUX RU ¶7HDFKHU RI WKH :KROH :RUOG· 6R HQUDJHG ZDV 6LGGLT +XVVDLQE\WKHVHFODLPVWKDWKHDWRQFHVHWDERXWSHQQLQJDERRNFRXQWHULQJ WKHVH¶IDOVH· FODLPVDQGDVVHUWLQJ LQVWHDG WKDWWKHUHDOMDJDWJXUX ZDVQRQHRWKHU WKDQ WKH 3URSKHW0XKDPPDG 7KH SXEOLFDWLRQ RI WKH ERRN LV UHSRUWHG WR KDYHUDLVHGD VWRUPRISURWHVW 2Q6HSWHPEHUD ODUJHUDOO\RI+LQGX QREOHVZDVKHOG DW+\GHUDEDG WRGHPDQG WKDW WKHERRNEHEDQQHG $ FDVH ZDV LQVWLWXWHG LQ WKH 1L]DP·V FRXUW WR WKLV HIIHFW $OWKRXJK WKH FRXUW GLVPLVVHGWKHLUSOHD WKH+LQGXRSSRVLWLRQWR6LGGLT+XVVDLQFRQWLQXHG DQG VRPH \HDUV ODWHU LQ -DQXDU\ DQRWKHU ODUJH UDOO\ RI +LQGXV KHOG DW +\GHUDEDGGHPDQGHGWKDWWKH1L]DPVKRXOGFXUE6LGGLT+XVVDLQ·VDFWLYLWLHV ZKLFK WKH\DOOHJHG ZHUHFDOFXODWHGWRGHIDPHWKHLUUHOLJLRQDQGLQFLWHLQWHU FRPPXQDO VWULIH $FFRUGLQJO\ WKH 1L]DP LVVXHG D GHFUHH EDQQLQJ 6LGGLT +XVVDLQ IURP DGGUHVVLQJ SXEOLF JDWKHULQJV 7KH FRQWURYHUVLDO ERRN ZDV FRQILVFDWHG E\ WKH VWDWH DXWKRULWLHV EXW ZDV ODWHU DOORZHG WR EH FLUFXODWHG ZLWKRXWDQ\SLFWXUHVLQFOXGHG $FFRUGLQJWR6LGGLT+XVVDLQEHFDXVHRIKLV XQWLULQJ HIIRUWV DW VSUHDGLQJ ,VODP DPRQJ WKH +LQGXV KH ZDV VHQW WR MDLO HLJKW\IRXUWLPHV VSHQGLQJDWRWDORIDOPRVWWHQ\HDUVLQSULVRQ

,Q KLV -DJDW *XUX 6LGGLT +XVVDLQ VRXJKW WR SUHVHQW ,VODP DQG KLV RZQ SHUVRQDO PLVVLRQ DV D IXOILOPHQW RI WKH VFULSWXUHV RI WKH+LQGXV XVLQJ WKH +LQGXWUDGLWLRQLQDQLQVWUXPHQWDOZD\WRDGYDQFHKLVRZQFODLPV +HZURWH WKDW *RG KDG VHQW SURSKHWV WR DOO SHRSOHV LQFOXGLQJ WR WKH ,QGLDQV DOO RI ZKRPKDG WDXJKW WKH VDPHUHOLJLRQ GLQ DO,VODP DQG WKDW WKH ODVWRI WKHVH ZDV WKH 3URSKHW 0XKDPPDG 7KH KRO\ ERRNV RI RWKHU SHRSOHV KDG EHHQ GLVWRUWHGRYHUWLPHDQGWKHRQO\VFULSWXUHWKDWKDGPDLQWDLQHG LWVSXULW\ZDV WKH4XU¶DQ <HW KHDUJXHG WKHSUHYLRXVVFULSWXUHVKDGSUHGLFWHGWKHDUULYDORI 0XKDPPDG DV*RG·V ODVW SURSKHW IRU DOOPDQNLQG ZKHUHDV DOO WKH SUHYLRXV SURSKHWV ZHUH VHQW E\ *RG RQO\ IRU WKHLU RZQ SDUWLFXODU FRPPXQLWLHV ,Q RWKHUZRUGV 0XKDPPDGLVWKH MDJDWJXUX WKH¶7HDFKHURIWKH(QWLUH:RUOG· +LVVFULSWXUH¶HQYLVDJHVRUFRPSULVHVWKHWHDFKLQJVRIDOOWKH VFULSWXUHVRIWKH IRUHJRQHSURSKHWV· DQGGRHVQRW LQ DQ\ZD\¶FRQIURQW· WKHP 5DWKHU DV¶WKH :RUOG 7HDFKHU· 0XKDPPDG ZLOO ¶SURYLGH SURWHFWLRQ· WR DOO RI WKHVH RWKHU SURSKHWV¶XQGHUKLVEDQQHU·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¶DQ $V6LGGLT+XVVDLQSXWLW ¶,VODPLV

OLNH DQ RFHDQ DQG DOO RWKHU UHOLJLRQV LQ FRPSDULVRQ DUH ULYHUV ZKLFK XOWL PDWHO\GUDLQLQWRWKHRFHDQ ,QRWKHUZRUGV RWKHUUHOLJLRQVDUHFRPSDUDEOHWR WKHEUDQFKHVRIDWUHH ZKLOH,VODPLVOLNHWKHVHHG·

6LGGLT+XVVDLQDUJXHGWKDWDOORWKHUSURSKHWVKDGSUHGLFWHGWKHDUULYDORI 0XKDPPDG DQG WKDW $OODK $OPLJKW\ KDV WDNHQ IURP WKHP D ¶FRYHQDQW UHJDUGLQJWKH3URSKHW0XKDPPDGSHDFHEHXSRQKLP· ¶FRPSHOOLQJWKHP· WREHOLHYH LQKLPDV¶WKH:RUOG7HDFKHU· DQG WR¶KHOSKLP LQHYHU\SRVVLEOH ZD\· 6LQFHDOO WKHSURSKHWVEHIRUH0XKDPPDGKDGDWWHVWHGWRWKHLUIDLWKLQ KLPEHIRUH*RG LWZDVWKHGXW\RIWKHLUIROORZHUVWRIROORZLQWKHLUSDWKDQG GRWKHVDPH +HUH 6LGGLT+XVVDLQTXRWHGQRWRQO\IURPWKHVFULSWXUHVRIWKH -HZV DQG &KULVWLDQV WR SURYH WKH FRPLQJ RI 0XKDPPDG DV ¶WKH :RUOG 7HDFKHU· EXWDOVRIURPWKHERRNVRIDQFLHQW(J\SWLDQ &KLQHVH =RURDVWULDQ *UHHNDQG5RPDQVFKRODUV 6LQFHKLVSDUWLFXODUFRQFHUQZDVWRSUHVHQW,VODP WRWKH+LQGXV KHGHYRWHGDODUJHVHFWLRQWRVHHNLQJWRVKRZWKDWWKHFRPLQJ RI0XKDPPDG DV WKH XQLYHUVDO VDYLRXU KDG EHHQ SUHGLFWHG LQPDQ\+LQGX VFULSWXUHV 4XRWLQJOLEHUDOO\IURPWKH9HGDV WKH8SDQLVKDGV DQGWKH%KDJZDW .DONL

DQG %KDYLVK\RNW 3XUDQDV 6LGGLT +XVVDLQ UHPDUNHG WKDW WKH DUULYDO RI 0XKDPPDG DV¶WKH:RUOG 7HDFKHU· KDG EHHQ¶SURSKHVLHG VR YLYLGO\ DQG LQ VXFKGHWDLO· LQWKHERRNVRIWKH+LQGXVDV¶FDQQRWEHIRXQGLQDQ\RWKHUUHOL JLRXVWH[WV· +HZURWHWKDW¶WKH\KDYHQRWVSDUHGDQ\LQFLGHQWRIKLVOLIHIURP KLVELUWKWLOOKLVGHPLVH ZKHWKHURIJUHDWVLJQLILFDQFHRURIQRVLJQLILFDQFHDW DOO· DQG HYHQ FODLPHG WKDW WKH DQFLHQW +LQGX VHHUV KDG SUHSDUHG DQ H[DFW KRURVFRSH RI 0XKDPPDG·V OLIH VRPH \HDUV EHIRUH KLV ELUWK 7KH 9HGDV ZHUH FODLPHG WR KDYH SUHGLFWHG 0XKDPPDG·V DUULYDO XVLQJ WKH WZR QDPHVRI0DPDKH ZKLFK6LGGLT+XVVDLQLQWHUSUHWHGDVDFRUUXSWHGIRUPRI WKH3URSKHW·VRZQQDPHDQG1DUDVKDPV ¶WKH3UDLVHG2QH· WKH6DQVNULWIRUP RIWKHPHDQLQJRIWKHZRUG¶0XKDPPDG· 1DUDVKDPVZDVVDLGWRKDYHEHHQ GHVFULEHG LQ WKH $WKDUYD 9HGD DV SRVVHVVLQJ ¶RQH KXQGUHG JROG FRLQV WHQ FKDSOHWV WKUHHKXQGUHGVWHHGVDQGWHQWKRXVDQGFRZV· ZKLFK6LGGLT+XVVDLQ H[SODLQHGDVUHIHUULQJWR0XKDPPDG·VWHQFORVHFRPSDQLRQV WKHLUKRUVHV DQG WKH 0XVOLPV ZKR DFFRPSDQLHG 0XKDPPDG LQ KLV YLFWRULRXV HQWU\LQWR0HFFD 7KHPDQWUD LQWKH6DPD9HGDUHFLWHGE\DSHUVRQRQKLV GHDWKEHGZKHQD%UDKPLQSULHVWSRXUVZDWHULQWRKLVPRXWK KDKDKXKXKL KL ZDV 6LGGLT+XVVDLQPDLQWDLQHG DFWXDOO\ DQ¶DEEUHYLDWLRQ· RI WKH ,VODPLF FUHHGRIFRQIHVVLRQNDOLPD¶ODLODKD LODOODKX PXKDPPDGXUUDVXOXOODKL· $FFRUGLQJWR6LGGLT+XVVDLQ WKHSRVW9HGLF OLWHUDWXUHRIWKH+LQGXVDOVR

FRQWDLQV DPSOH UHIHUHQFHV WR WKH DUULYDO RI0XKDPPDG DV WKH MDJDW JXUX RU NDONLDYDWDU 7KXV KHZURWH WKH%KDJZDWDQGWKH.DONL3XUDQDVERWKPHQWLRQ WKDWWKHIDWKHURIWKHNDONLDYDWDUMDJDWJXUX ZRXOGEHFDOOHG¶9LVKQX%KDJDW· RU ¶VHUYDQWRI*RG· ZKLFKLVWKHPHDQLQJRIWKHZRUG¶¶$EGXOODK· WKHQDPHRI 0XKDPPDG·VIDWKHU 7KH\DOVRSUHGLFWWKDWWKHNDONL DYDWDU·VPRWKHUZRXOGEH FDOOHG¶6XPDWL· RU¶SHDFHIXO· ZKLFKLVWKH6DQVNULWHTXLYDOHQWRI¶¶$PLQD· WKH QDPH RI 0XKDPPDG·V PRWKHU %RWK WKHVH WH[WV SUHGLFW WKDW WKH NDONL

DYDWDUMDJDWJXUX ZRXOGJDLQGLYLQHNQRZOHGJHIURP3DUDVXUDP DQLQFDUQDWLRQ RI9LVKQX ZKRP6LGGLT+XVVDLQHTXDWHGZLWKWKHDQJHO*DEULHO-LEUD¶LO

7KH%KDYLVK\RNW3XUDQDLVVDLGWRKDYHSUHGLFWHGWKHFRPLQJRI0XKDPPDG WKXV ¶$JUHDWSHUVRQZRXOGPDQLIHVWKLPVHOIDPRQJWKH0OHFFKDV DORQJZLWK KLV GLVFLSOHV +LV PRVW IDPRXV QDPH ZRXOG EH 0DKDPDG· ,QWHUHVWLQJO\ 6LGGLT+XVVDLQSUHVHQWHG0XKDPPDGLQDIRUPUHPLQLVFHQWRIWKDWRI0DQX WKHSURJHQLWRURIWKHKXPDQUDFHDFFRUGLQJWRWKH+LQGXV IURPZKRVHVDFUL ILFH WKH IRXU FDVWHV YDUQDVZHUH ERUQ 7KXV 0XKDPPDG LV GHVFULEHG DV¶D SHUIHFWPRGHO WR WKH IRXU UHOLJLRQV· EHLQJ WKH SHUIHFW VFKRODU %UDKPLQ D EUDYHZDUULRU.VKDWUL\D DQHQWHUSULVLQJWUDGHU9DLVK\DDQGRQHZKRVHUYHV KXPDQLW\ 6KXGUD )XUWKHU WKH .DPDGKHQX WKH YHKLFOH ZKLFK +LQGXV EHOLHYHZLOOWUDQVSRUWWKHNDONLDYDWDU WKURXJKWKHVHYHQKHDYHQV LVVKRZQWR EH WKH VDPH HYHQ LQSK\VLFDO WHUPV DV WKH%XUDT RQZKLFK PDQ\0XVOLPV EHOLHYH WKH 3URSKHW 0XKDPPDG URGH ZKLOH RQ KLV DVFHQVLRQ WR KHDYHQ PL¶UDM %RWKWKH.DPDGKHQXDQGWKH%XUDTKDYHDZRPDQ·VKHDG DKRUVH·V ERG\ DSHDFRFN·V WDLODQGWKHZLQJVRIDQHDJOH *DQDSDWLRU*DQHVKD WKH HOHSKDQWKHDGHGJRGZKRPWKH+LQGXVUHJDUGDVWKHGHLW\RIZLVGRP 6LGGLT +XVVDLQDVVHUWHG ZDVQRQHRWKHUWKDQ,PDP¶$OL VRQLQODZRI0XKDPPDG ZKRPWKH6XILVUHJDUGDVWKH¶JDWHZD\RINQRZOHGJH· PRVW6XILRUGHUVWUDFLQJ WKHLUVSLULWXDOGHVFHQWIURPKLP FODLPLQJWKDWKHZDVWKHUHFLSLHQWRIHVRWHULF ZLVGRPIURPWKH3URSKHW 6LGGLT+XVVDLQDOVRREVHUYHGWKDWWKH+LQGXKRO\ V\OODEOH¶2P· DQGWKHILJXUHRI*DQHVKDLQWKHIRUPRIKDOIPDQ KDOIHOHSKDQW UHVHPEOHWKHZRUG¶$OLDVLWLVZULWWHQLQ$UDELF

7KH5DPD\DQD DUJXDEO\WKHPRVWSRSXODUSRVW9HGLFWH[WIRUWKH+LQGXV LVDOVRVDLGWRKDYHSUHGLFWHGWKHDUULYDORI0XKDPPDG 7KXV 6LGGLT+XVVDLQ ZURWH WKHPHWKRGRISUD\HUWKDW5DPD WKHKHURRIWKH5DPD\DQD WDXJKWWKH PRQNH\+DQXPDQZDV LGHQWLFDO WR WKH IRUP RIZRUVKLS VDODW QDPD] WKDW 0XVOLPVSHUIRUP +LQGXV WKHUHIRUH PXVWDOVRSUD\LQWKH0XVOLPIDVKLRQLI WKH\DUHWUXO\GHYRWHGWR5DPD +HH[SODLQHGWKDW$\RGK\D WKHOHJHQGDU\ FLW\ RI5DPD DFWXDOO\ UHIHUUHG WR0HFFD WKHZRUG¶$\RGK\D· WUDQVODWLQJ DV ¶WKHSODFHZKHUHZDULVSURKLELWHG· RU DOWHUQDWHO\¶WKHSODFHWKDWLVXQFRQTXHU DEOH· ERWKRIZKLFK KHDUJXHG KHOGWUXHIRUWKH0XKDPPDG·V0HFFD +H FODLPHG WKDWPDQ\ UHOLJLRXV ILJXUHVZKRP WKH+LQGXV UHYHUH KDG KHOG WKH 3URSKHW0XKDPPDGLQJUHDWHVWHHPDQGZHUHDFWXDOO\0XVOLPV WKHPVHOYHV DOWKRXJK WKLV KDG EHHQ IRUJRWWHQ E\ WKHLU IROORZHUV 1DQDN IRU LQVWDQFH LV VDLG WR KDYH EHHQ D0XVOLP 6XIL DQG VHYHUDO RI KLV XWWHUDQFHV LQ SUDLVH RI 0XKDPPDG DV ZHOO DV KLV FORDN SUHVHUYHG DW WKH JXUXGZDUD DW 'HUD %DED 1DQDN ZLWK YHUVHV IURP WKH 4XU¶DQ HPERVVHG RQ LW ZHUH SUHVHQWHG DV HYLGHQFHLQWKLVUHJDUG 0DQDN3UDEKX DVDLQWZLWKDODUJHIROORZLQJDPRQJ WKH +LQGX DJULFXOWXULVW FDVWHV RI WKH 'HFFDQ ZKRVH VKULQH LV ORFDWHG DW 0DQDN1DJDUQHDU*XOEDUJD ZDV DOVRSUHVHQWHG DV D0XVOLP /LNHZLVH LQ WKHFDVHRIVHYHUDO/LQJD\DWVDLQWV ,QRWKHUZRUGV 6LGGLT+XVVDLQFRQFOXGHG ¶>W@KH3URSKHW0XKDPPDGSHDFHEHXSRQKLPDVDVXEOLPHHQWLW\VHHPVWR SHUYDGHWKHHQWLUH,QGLD·

7KLVWHFKQLTXHRITXRWLQJ+LQGXVFULSWXUHVWRSURYHWKHWUXWKRI,VODPDQG WRFRPPHQG,VODPWRWKH+LQGXVZDVE\QRPHDQVDQRYHORQH DVZHKDYH VXJJHVWHG 0DQ\ 6XILV 6KL¶DK ,VPD¶LOL GDL¶V DQG WKH $KPDGLV KDG XVHG WKLV VWUDWHJ\ DV DPHDQV WR DGYDQFH WKHLU RZQ FODLPV DQG HQJDJH LQPLVVLRQDU\ ZRUNDPRQJWKH+LQGXV DQGLWLVFOHDUWKDW6LGGLT+XVVDLQZDVDZDUHRIWKHVH SDVW SUHFHGHQWV ,Q RQH RI KLV QXPHURXV PLVVLRQDU\ WH[WV 6LGGLT +XVVDLQ FRQVFLRXVO\ EDVHG KLV DUJXPHQWV RQ WKHPRGHO RI WKHZHOONQRZQ 6XIL WKH VHYHQWHHQWKFHQWXU\0XJKDOSULQFH'DUD6KLNRK 6LGGLT+XVVDLQ·V -DPL¶DDO %DKUDLQ ¶7KH8QLRQRIWKH7ZR2FHDQV· ZULWWHQLQ ZDVSDWWHUQHGDQG QDPHG DIWHU 'DUD·V ZHOONQRZQ WUHDWLVH WKH0DMPX¶D DO%DKUDLQ /LNH 'DUD 6LGGLT +XVVDLQ DOVR GUHZ SDUDOOHOV EHWZHHQ WKH GRFWULQHV DQG SUDFWLFHV RI +LQGXDQG0XVOLPP\VWLFV EXW XQOLNHKLP XVHG WKHVH WR VXJJHVW WKHQHHG IRU+LQGXVWRFRQYHUWWR,VODP +HRSHQHGKLVHVVD\ZLWKDFXULRXVUHPDUNWR WKH HIIHFW WKDW ,QGLD LV ¶KHDYHQ RQ HDUWK· MDQQDWL QLVKDQ DQG KH TXRWHV D KDGLWK DFFRUGLQJ WRZKLFK WKH3URSKHW0XKDPPDG LV VDLG WRKDYH¶IHOWFRRO EUHH]H FRPLQJ IURP ,QGLD· WKLV EHLQJ WKH ODQG ZKHUH ,PDP +XVVDLQ KDG ZLVKHG WR PLJUDWH WR LQ RUGHU WR VSUHDG ,VODP +H ZURWH RI 5DPD ¶6KUL 5DPML·DQG.ULVKQD¶6KUL.LVKDQML·DV¶H[DOWHGLQFDUQDWLRQV· EXODQGSD\HNH DYDWDU EXWVDLGWKDWXQOHVVWKHYDULRXVFRPPXQLWLHVLQ,QGLDFDPHWRJHWKHURQ WKH¶SRLQWRIXQLW\·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²0XVOLPXQLW\ IRULQ WKH DQQXDO ODPHQWDWLRQ ULWXDOV PDUNLQJ +XVVDLQ·V PXUGHU DW .DUEDOD ERWK +LQGXV DQG0XVOLPV WUDGLWLRQDOO\ SDUWLFLSDWHGZLWK HTXDO IDLWK DQG IHUYRXU 7KH%ULWLVK KH UHPDUNHG SORWWHG WRGHVWUR\ WKLV FORVH UHODWLRQVKLSEHWZHHQ 0XVOLPV DQG +LQGXV ZKHQ WKH\ FDPH WR SRZHU DQG IROORZLQJ WKHP WKH $U\D 6DPDMLVWV KDG WDNHQ LW XSRQ WKHPVHOYHV WR SHUVXDGH +LQGXV QRW WR SDUWLFLSDWH LQWKH0XKDUUDPREVHUYDQFHV +RZHYHU 6LGGLT+XVVDLQZURWH ¶$OODK ZLVKHG WR SUHVHUYH WKH KRQRXU RI ,PDP+XVVDLQ· DQG¶UHVSHFWHG KLV PLVVLRQ RI +LQGX²0XVOLP XQLW\· DQG VR IURP DPRQJ WKH ,PDP·V GHVFHQ GDQWV +HKDGFKRVHQKLPDVDQDYDWDU RID+LQGXGHLW\ ERUQLQD0XVOLP IDPLO\ WR SUHDFK ,VODP WR WKH +LQGXV WKHUHE\ FDUU\LQJ RQ WKH ,PDP·V PLVVLRQ %\FRPELQLQJWKH¶0XVOLP· DQG¶+LQGX· WLWOHVRI¶6LGGLT'HHQGDU· DQG ¶&KDQQDEDVDYHVZDUD· UHVSHFWLYHO\ KH KDG KH VDLG ¶GHVWUR\HG WKH FRQIOLFW EHWZHHQWKH+LQGXVDQGWKH0XVOLPV· DQGKDGVKRZHGWKHP¶KRZWKHP\VWL FLVPWDVDZZXIRI6KUL5DPMLDQG6KUL.LVKDQMLZHUHLQIXOODFFRUGDQFHZLWK ,VODPLF6XILVP·

$W WKLV SRLQW 6LGGLT +XVVDLQ UHIHUUHG WR 'DUD·V RZQ HIIRUWV DW XQLWLQJ

+LQGXV DQG0XVOLPV WKURXJK KLV0DMPX¶D DO%DKUDLQ EXW FRPPHQWHG WKDW 'DUDGLGQRWGHDOZLWKWKHTXHVWLRQRIZKDWH[DFWO\FRXOGXQLWHWKHWZR DQG FRQVHTXHQWO\IDLOHGLQKLVHQGHDYRXUV 6RPHDUJXHG KHVDLG WKDW+LQGXVDQG 0XVOLPVFRXOGXQLWH WR MRLQWO\ ILJKW WKH%ULWLVK IRU VHOIUXOH VZDUDM EXW KH UHPDUNHG *RGKDVFUHDWHGKXPDQEHLQJVQRWVLPSO\IRU¶PDWHULDOSXUVXLWV· EXW IRU¶VSLULWXDOSURJUHVV· +HQFH WKHMRLQWVWUXJJOHIRUVZDUDM FRXOGQRWSURYLGHD ILUPIRXQGDWLRQIRU+LQGX²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¶DFWXDOO\ WUXH· ,Q RWKHU ZRUGV LI +LQGXV ZHUH WR DFFHSW0XKDPPDGDQG,VODPDVWKHILQDOWUXWKDQGWKXVFRQYHUWWR,VODP WKH 0XVOLPV LQWXUQ ZRXOGEHPDGHWRXQGHUVWDQGWKDWWKH+LQGXSURSKHWVDQG VFULSWXUHV WRR ZHUH RI GLYLQH RULJLQ ,Q HIIHFW WKHQ ZKDW 6LGGLT +XVVDLQ DUJXHGIRUZDVD¶FRQYHUVLRQ· RQWKHSDUWRI+LQGXVDVZHOODV0XVOLPV ZLWK +LQGXV UHFRJQL]LQJ 0XKDPPDG DV WKH ODVW SURSKHW RI *RG DQG 0XVOLPV UHFRJQL]LQJ DQG UHVSHFWLQJ WKH SURSKHWV RI WKH+LQGXV ¶&UHDWLQJ LQWHUUHOL JLRXVKDUPRQ\· 6LGGLT+XVVDLQ VWUHVVHG ZDVD WZRZD\SURFHVV IRU¶LW WDNHV WZRKDQGVWRFODS· ¶/RYHDQGFRUGLDOLW\· KHGHFODUHG ¶FDQRQO\EHFHPHQWHG ZKHQERWK>+LQGXVDQG0XVOLPV@FOHDQVHWKHLUKHDUWVDQGOHWWKHILUHRIXQLW\ EXUQEULJKWO\·

:KLOH WKH+LQGXVZHUH H[SHFWHG WR FRQYHUW WR ,VODP ² IRU0XKDPPDG ZDV WKH ODVWSURSKHWRI*RGDQG DV6LGGLT+XVVDLQ HFKRLQJ0XVOLPEHOLHI LQVLVWHG ,VODPZDVWKHRQO\WUXHUHOLJLRQ²0XVOLPVZHUHH[SHFWHGWRFRQVLG HUDEO\ UHYLVH WKHLU RZQ YLHZV DERXW +LQGXLVP %HIRUH KLV DGYHQW 6LGGLT +XVVDLQFODLPHG WKH0XVOLPVZHUHFRPSOHWHO\ LJQRUDQWRI WKH VFU LSWXUHVRI WKH +LQGXV 7KH\ ORRNHG XSRQ WKHP DQG WKHLU DYDWDUV FRQWHPSWXRXVO\ ¶DV NDILUV· DV¶ZLWKRXWUHOLJLRQ· EHGLQ DVKDYLQJKDGQRSURSKHWVHQWWRWKHPE\ *RGDQGDV ODFNLQJLQDQ\¶WUXWKIXOQHVV· VDGDTDWDQGVSLULWXDOLW\UXKDQL\\DW 1R0XVOLP KHZURWH ZRXOGHYHUDVVXPHWKHQDPHRID+LQGXDYDWDU ZKLOH RQ WKH RWKHU KDQG PDQ\+LQGXV XVHG0XVOLP QDPHV 3ULRU WR KLV DGYHQW 0XVOLPVZRXOGQHYHUWDNHWKHQDPHRI5DPD .ULVKQDRU6KLYDLQDPRVTXH EXW QRZ WKH PLVVLRQDULHV RI WKH $QMXPDQ ¶IUHHO\ WDON RI WKHVH DYDWDUV LQ PRVTXHV DQG WKHLU WHDFKLQJV DUH GLVFXVVHG· $V D UHVXOW KH FODLPHG ¶>P@DQ\ 0XVOLPVDUHWDNLQJWKHQDPHRI+LQGXHOGHUVEX]XUJDQDQGDUHWDONLQJDERXW WKHPLQPRVTXHVDQGLQUHOLJLRXVJDWKHULQJV· 1RZ EHFDXVHRIKLVZRUN KH UHPDUNHG KHKDGFRQYLQFHGWKH0XVOLPVWKDW¶WKHUHLVOLJKWQXUHYHQLQWKH UHOLJLRQRI WKH+LQGXV· DQGWKDWSULRU WR0XKDPPDG*RGKDG LQGHHGVHQW PDQ\KRO\PHQ LQFOXGLQJSURSKHWVDQGVDLQWV WR,QGLD ,QWKLVZD\ 6LGGLT

+XVVDLQ DUJXHG WUXH +LQGX²0XVOLP XQLW\ ZDV EHLQJ HVWDEOLVKHG E\ KLV HIIRUWV DQGVRRQ¶+LQGXVWDQZRXOGEHFRQYHUWHGLQWRDYHULWDEOHKHDYHQ·

(FKRLQJ'DUD·VRZQZULWLQJVRQWKHVXEMHFW 6LGGLT+XVVDLQVRXJKWLQKLV -DPL¶DDO%DKUDLQ WRGUDZRQWKHVLPLODULWLHVLQWKHWHDFKLQJVRIWKH+LQGXDQG 0XVOLPP\VWLFV UHLQWHUSUHWLQJ+LQGXP\VWLFDOGRFWULQHVVRDVWRSUHVHQWWKHP DV LGHQWLFDO WR WKHLU ,VODPLF FRXQWHUSDUWV 7KH QXPHURXV GHLWLHV ZKRP WKH +LQGXVZRUVKLSZHUHH[SODLQHG DZD\ DV VLPSO\GLIIHUHQWQDPHV IRU WKHRQH *RG RU DV WHUPV XVHG WR GHVFULEH +LV YDULRXV DWWULEXWHV VLIDW 7KXV IRU LQVWDQFH %UDKPD FRQVLGHUHGE\+LQGXVWREHWKH&UHDWRU ZDVVDLGDFWXDOO\WR EH D WHUP WRGHVFULEH$OODK LQKLV FDSDFLW\RIEHLQJ NKDOLT WKH&UHDWRURU UDKPDQ WKH%HQHILFHQW 9LVKQX WKH+LQGXJRGRISUHVHUYDWLRQ ZDV VDLG WR UHIHUWR$OODK·VDWWULEXWHRIUDKP PHUF\DQG6KLYD WKH+LQGXJRGRIGHVWUXF WLRQ WR GHQRWH $OODK LQ KLV FDSDFLW\ RI¶/RUG· RU¶0DVWHU· PDOLN -XVW DV +LQGXP\VWLFLVPDQG,VODPLF6XILVPVKDUHDFRPPRQVWUHVVRQPRQRWKHLVP VR WRR 6LGGLT+XVVDLQFRQWHQGHG WKH\KDYHLGHQWLFDOYLHZVRQLVVXHVVXFKDV *RG·V SRZHUV +LV HVVHQFH DQG +LV DWWULEXWHV WKH FUHDWLRQ DQG SRVLWLRQ RI 0DQLQWKHFRVPRV WKHVRXO GLYLQHUHYHODWLRQ SUD\HU PHGLWDWLRQ WKHFRQFHSW RIWKHILYHHOHPHQWVDQGWKHQRWLRQRIOLIHDIWHUGHDWK 7KH¶XQLRQRIWKHVHWZR RFHDQV· RI VSLULWXDOLW\ MDPL¶D DOEDKUDLQ KH FRQFOXGHG KHOG WKH NH\ WR WKH SUREOHPRI+LQGX²0XVOLPUHODWLRQV 7KH WZR VWUHDPVZHUH VKRZQDVEHLQJ XQLWHG E\ RQH SHUVRQ WKH 3URSKHW 0XKDPPDG ZKRP WKH SUH 0XKDPPDGDQ¶P\VWLFVRI,QGLD· IXTDUDLKLQGZHUHVDLGWRKDYHUHIHUUHGWRDV WKHVDQJDPQDWK WKH¶0DVWHURIWKH&RQIOXHQFH· %\EULQJLQJWRIXOILOPHQWWKH SURSKHFLHVRIWKH+LQGXVFULSWXUHVDQGE\VWUHVVLQJWKHRQHQHVVRIWKHVSLUL WXDOWUDGLWLRQVRIWKH+LQGXVDQGWKH0XVOLPV WKHLUGLIIHUHQFHVEHLQJPHUHO\ DSSDUHQW RZLQJ WR WKH GLIIHUHQW ODQJXDJHV LQ ZKLFK WKH\ DUH H[SUHVVHG 0XKDPPDGZDVVKRZQWREHWKH¶0DVWHURIWKH8QLRQRIWKH2FHDQV· VDUGDU LPDMPX¶DDOEDKUDLQ 7RWKH+LQGXV KHZDVDOVRWKHNDONLDYDWDU DQGWKHMDJDW JXUX 7KLV DSSURSULDWLRQ RI +LQGX ILJXUHV DQG UHDGLQJ RI QHZPHDQLQJV LQWR

+LQGXUHOLJLRXVWH[WVZDVWKHPHDQVWKDW6LGGLT+XVVDLQHPSOR\HGWRIXUWKHU KLVPLVVLRQRISURSDJDWLQJKLVYHUVLRQRI,VODPWRWKH+LQGXV )RU+LQGXVWR FRQYHUWWR,VODP KHVXJJHVWHG ZDVQRWWDQWDPRXQWWREHWUD\LQJWKHLUDQFHVWUDO IDLWK 2Q WKH FRQWUDU\ D¶WUXH· UHDGLQJRI WKH¶SURSKHFLHV· LQ WKHLU VFULSWXUHV GHPDQGHG KH DUJXHG WKDW +LQGXV VKRXOG LQ IDFW GHFODUH WKHLU IDLWK LQ 0XKDPPDG DV WKH NDONL DYDWDUMDJDW JXUXVDQJDP QDWK DQG DFFRUGLQJO\ HPEUDFH ,VODP ,Q WKLVPDQQHU WKH+LQGX VFULSWXUHVZHUH QRW GHQLHG EXW UDWKHU XVHGLQRUGHUWREHVXSHUVHGHGE\WKH4XU¶DQ ,QOLQHZLWKRUWKRGR[ 0XVOLPRSLQLRQ 6LGGLT+XVVDLQDVVHUWHGWKDWDOOSURSKHWVRI*RG IURP$GDP WR0XKDPPDG KDG SUHDFKHG WKH VDPH GLQ ² DO,VODP ² DOWKRXJK VRPH RI WKHPEURXJKWQHZODZVVKDUL¶DKVXSHUVHGLQJWKRVHRIWKHLUSUHGHFHVVRUV /LNH 0LU]D *KXODP $KPDG 6LGGLT +XVVDLQ LGHQWLILHG 5DPD .ULVKQD DQG WKH DXWKRUV RI WKH9HGDV DQG RWKHU+LQGX VFULSWXUHV DV SURSKHWV RU DV GLYLQHO\ LQVSLUHG DUJXLQJWKDWWKH\ WRR WDXJKWWKHGLQ RI,VODP )RU+LQGXVWREHFRPH

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

%HVLGHVRUGLQDU\+LQGXV 6LGGLT+XVVDLQDOVRDWWHPSWHGWRZLQWKH+LQGX UXOHUVRIYDULRXVQDWLYHVWDWHVWRKLVFDXVH +HLVVDLGWRKDYH¶FKDOOHQJHGDOOWKH >+LQGX@NLQJVRI,QGLDWRSXWWKHLUKHDGVDWWKHIHHWRI0XKDPPDG SHDFHEH XSRQKLP· )RUWKLVSXUSRVH KHSHQQHGDVSHFLDO8UGXWUDFWHQWLWOHG+LGD\DW 1DPDK%DQDP*KD\U0XVOLP6DODWLQ ¶/HWWHURI,QVWUXFWLRQ$GGUHVVHGWR1RQ 0XVOLP5XOHUV· LQ ZKLFK KH SUHVHQWHG ,VODP DV VLJQLI\LQJ¶XQLRQ· PLODS DUJXLQJ WKDW ,VODP KDG FRPH WR XQLWH DOO WKH SHRSOHV RI WKH ZRUOG 8VLQJ PHWDSKRUVZKLFKZRXOGEHIDPLOLDUWRWKHUR\DOW\ZKRPKHZDVDGGUHVVLQJ KHDVVHUWHGWKDW,VODPZDV¶WKHFRQVWLWXWLRQRIXQLW\· ZDKGDWNDGDVWXU JXDUDQ WHHLQJ WKDW¶XQGHU LWV VKDGRZ· DOO FUHDWXUHV FRXOG OLYH LQSHDFH IRU WKHZRUG ¶,VODP· LWVHOIPHDQV¶XQLYHUVDOSHDFH· DPDQL¶DODP 2IDOOWKHUHOLJLRQVLQWKH ZRUOG LWZDVRQO\,VODP KHFODLPHG ZKLFKFRXOGJXDUDQWHHSHDFH ,IDOO WKH UXOHUVZHUHWREHFRPH0XVOLP SHDFHZRXOGDWRQFHEHHVWDEOLVKHG DV EHLQJ IHOORZ0XVOLPV WKH\ZRXOGOLYHLQKDUPRQ\ ORYHDQGEURWKHUKRRGZLWKHDFK RWKHUDQGZRXOGGHVLVWIURPDWWDFNLQJHDFKRWKHU·VWHUULWRULHV 2QWKHRWKHU KDQG KHDUJXHG WKH+LQGXUHOLJLRQ¶LVLQFDSDEOHRIJXDUDQWHHLQJSHDFH· DQG LQ IDFW LW KDG FDXVHG WKH+LQGXV WR ILJKW DPRQJ WKHPVHOYHV GLYLGLQJ WKHP LQWRQXPHURXVPXWXDOO\RSSRVHGFDVWHV

,Q$+ 6LGGLT+XVVDLQ DFFRUGLQJ WR WKHDYDLODEOHKDJLR JUDSKLFDOVRXUFHV LVVDLGWRKDYHGLVSDWFKHGWZHQW\JURXSVRIKLVIROORZHUVWR WKH FRXUWV RI VRPH +LQGX SULQFHV DQG FKLHIWDLQV LQ YDULRXV SDUWV RI ,QGLD EHDULQJ ZLWK WKHP WKH ERRNOHW WKDW KH KDG VSHFLDOO\ SHQQHG IRU WKHP 7KH\ZHUH LQVWUXFWHG WRZDUQ WKHVHUXOHUV WKDW LI WKH\DFFHSWHG,VODP ¶WKH\ZRXOGJDLQWKHZHDOWKRIUHOLJLRQGLQDQGWKHZRUOGGXQL\D· EXWWKDW LIWKH\UHIXVHG WKHLUSRZHUZRXOGEHVQDWFKHGDZD\IURPWKHP $FFRUGLQJWR 'HHQGDU DFFRXQWV QRQH RI WKH +LQGX SULQFHV ZKRP WKH GHOHJDWLRQV PHW KHHGHGWKHLUDGYLFH DQG EHFDXVHRIWKLV DIHZ\HDUVODWHUDOORIWKHPORVWWKHLU WKURQHV

)URP WKHGHFODUDWLRQRI KLV¶GLYLQH· PLVVLRQ LQ WLOO KLVPLJUDWLRQ WR <DJKHVWDQLQ 6LGGLT+XVVDLQIRFXVHGKLVHQHUJLHVRQPLVVLRQDU\ZRUN WKURXJKSXEOLF OHFWXUHV DQG WKHSXEOLFDWLRQRI WUDFWV DQGERRNV GHOLEHUDWHO\ VHOHFWLQJ LW LV VDLG HFRQRPLFDOO\ DQG VRFLDOO\EDFNZDUGDUHDVRI WKH1L]DP·V 'RPLQLRQV VXFKDV*XOEDUJD 1DQGHGDQG6KRODSXU IRUKLVSUHDFKLQJDFWLYL

WLHV *UDGXDOO\ KH IRUPHGD VPDOO FLUFOHRIGHYRWHG IROORZHUV DURXQG KLP DOPRVW DOO IURP 0XVOLP EDFNJURXQGV ZKR ZHUH DWWUDFWHG WR KLP E\ KLV FKDULVPDWLF DSSHDO DQGKLVPHVVLDQLF IHUYRXU ,Q WKHFRQWH[WRI WKHJURZLQJ FKDOOHQJH SRVHG E\ WKH $U\DV LQ +\GHUDEDG DQG LQ QRUWKHUQ ,QGLD WKH LQFUHDVLQJUHVHQWPHQWRIWKH+LQGXPLGGOHFODVVHVDJDLQVWWKH1L]DP DVZHOO DVWKHHPHUJHQFHRIPLOLWDQWFRPPXQLVWDFWLYLWLHVLQWKH1L]DP·V'RPLQLRQV LWPXVWKDYHDSSHDUHG WR WKHPWKDW+\GHUDEDG DVRQHRI WKH ODVW UHPDLQLQJ EDVWLRQ RI0XVOLP SRZHU DQG DXWKRULW\ LQ ,QGLD ZDV QRZ IDFHG ZLWK WKH GDQJHURXV SRVVLELOLW\ RI EHLQJ HQJXOIHG E\ DQ LQFUHDVLQJO\PHQDFLQJ+LQGX FKDOOHQJH 7KH PHVVLDQLF FODLPV RI 6LGGLT +XVVDLQ ZLWK KLV SURPLVHV RI FRQYHUWLQJ DOO RI ,QGLD WR ,VODP RI ¶FRQTXHULQJ WKH ODQGV RI WKH NDILUV· RI ¶HVWDEOLVKLQJWKHVDW\XJ· HQIRUFLQJWKHUXOHRI,VODPLQWKHFRXQWU\DQG¶HVWDE OLVKLQJ KHDYHQ RQ HDUWK· PXVW UHDGLO\ KDYH DSSHDOHG WR DQ LQFUHDVLQJO\ LQVHFXUHPLQRULW\ $V WKHQXPEHURIKLV IROORZHUVJUHZ WKHQHHGZDV IHOW IRUDFHQWUHIRUWKH$QMXPDQIURPZKLFKLWVDFWLYLWLHVFRXOGEHFRRUGLQDWHG ,QRQHRIKLVFORVHVWGLVFLSOHV 0DXOYL'DVWJLU.KDQ GRQDWHGDSLHFHRI ODQG WR KLP DW $VLI 1DJDU LQ WKH KHDUW RI +\GHUDEDG FLW\ ZKHUH 6LGGLT +XVVDLQ HVWDEOLVKHG KLV NKDQTDK RU 6XIL FHQWUH 7KLV ZDV FKULVWHQHG WKH .KDQTDKL6DUZDUL¶$ODP-DJDW*XUX$VKUDP0RQDVWHU\RIWKH/RUGRIWKH :RUOG WKH:RUOG7HDFKHU +HUH 6LGGLT+XVVDLQZRXOGJLYHGDLO\OHFWXUHV RQWKH4XU¶DQDQGRQWKHVFULSWXUHVRIWKH+LQGXV DQGWUDLQKLVOLWWOHEDQGRI PLVVLRQDULHV WHDFKLQJ WKHP DPRQJ RWKHU VXEMHFWV YDULRXV ODQJXDJHV LQFOXGLQJ .DQQDGD 7HOXJX +LQGL (QJOLVK )DUVL 3XQMDEL 3DVKWX DQG *XMDUDWL

6LGGLT+XVVDLQDQGWKH0XVOLPV 7KH0XVOLPV ZKRP6LGGLT+XVVDLQKDGORRNHGWRIRUVXSSRUWLQKLVPLVVLRQ VHHP E\DQG ODUJH HLWKHU WRKDYH LJQRUHGKLPRUHOVH WRKDYHFRPHRXW LQ RSHQ RSSRVLWLRQ :H WKXV KHDU RI QXPHURXV¶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

'HVSLWHWKLVVWLIIRSSRVLWLRQIURPPDQ\0XVOLPV 6LGGLT+XVVDLQ SHUVLVWHG LQ WU\LQJ WR FRQYLQFH 0XVOLPV RI WKH OHJLWLPDF\ RI KLV FODLPV DQG RI WKH LPSRUWDQFHRIKLVPLVVLRQ SUHVHQWLQJKLVZRUNDVLQOLQHZLWKRUWKRGR[,VODP DQG UHEXWWLQJ VXJJHVWLRQV HLWKHU WKDW KH ZDV D 4DGLDQL RU WKDW KH ZDV DWWHPSWLQJWRVHWXSDQHZVHFWRIKLVRZQ 7KXV KHZURWH PHPEHUVKLSRI WKH$QMXPDQZDVRSHQWRDOO0XVOLPVZKRKDGUHFLWHGWKH,VODPLFFUHHGRI

FRQIHVVLRQ DWWHVWLQJWRWKHLUIDLWKLQ$OODKDQG0XKDPPDG 7KH$QMXPDQ KH VDLG ZDV¶IUHHIURPWKHVWDLQRIVHFWDULDQLVP· ,WUHVSHFWHGWKHIRXQGHUVRIDOO 0XVOLPVHFWVDQGZDVDQLGHQWLFDOUHSOLFDRIWKHFRPPXQLW\WKDW0XKDPPDG KDGIRXQGHG +HFODLPHGWKDWWKHZRUNRIWKH$QMXPDQZDV¶OLPLWHGRQO\ WR >PLVVLRQDU\ DFWLYLW\ DPRQJ@ WKH+LQGXV· DQG WKDW KHPDGH QR FODLPV RI EHLQJ D SURSKHW QDEL RUPHVVLDK PDVLK DV KLV GHWUDFWRUV DFFXVLQJKLPRI KDYLQJ 4DGLDQL FRQQHFWLRQV KDG DOOHJHG +H DGPLWWHG KRZHYHU WKDW KH FRQVLGHUHG 0LU]D *KXODP $KPDG WR EH WKH ¶PXMDGGLG RI WKH IRXUWHHQWK >,VODPLF@ FHQWXU\· LQ OLQHZLWK WKH /DKRUL SRVLWLRQ RQ WKHPDWWHU $V IRU KLPVHOI KHFODLPHGWKDWKHKDGEHHQVHQWRQDGLYLQHPLVVLRQ GHFODULQJWKDW WKH 3URSKHW 0XKDPPDG KLPVHOI KDG DSSRLQWHG KLP DV WKH ¶LPDP XOQDV· ¶LPDPRIWKHSHRSOH·DQGWKH LPDPLDTZDPL¶DODP ¶LPDPRIDOOSHRSOHVRI WKHZRUOG· DQG LQWKDWFDSDFLW\ DVWKH¶EURWKHUEKDLRIDOO0XVOLPV· *RG KH VDLG KDG VHOHFWHG KLP WR FDUU\ RQ WKH PLVVLRQ RI VSUHDGLQJ ,VODP DQG KHQFH LQVWHDGRIRSSRVLQJKLP WKH0XVOLPV VKRXOGEH JODG WKDW$OODKKDG ¶EHVWRZHGWKLVKRQRXURQRQHRI WKHLUEUHWKUHQ· WKLV LWVHOIEHLQJ¶DSURRIRI WKHWUXWKDQGOLIHRI,VODP·

6LGGLT+XVVDLQVRXJKWWRSURMHFWKLVZRUNDVLQOLQHZLWKWKDWRIWKHHDUO\ 0XVOLPV ZKRVHPLVVLRQ KH VXJJHVWHG WKH0XVOLPV KDG ODUJHO\ DEDQGRQHG +HUHPDUNHG WKDW VLQFH WKH¶XODPD DQG6XILVRIKLV WLPHKDGJLYHQXS WKHLU GXW\ RI PLVVLRQDU\ ZRUN DPRQJ QRQ0XVOLPV KH ZDV VLPSO\ UHYLYLQJ WKH WUDGLWLRQRI0XKDPPDG·V&RPSDQLRQVE\DWWHPSWLQJWRVSUHDG,VODPDPRQJ WKH +LQGXV +LV ZDV KH VDLG WKH VDFUHG WDVN WKDW WKH &RPSDQLRQV KDG SHUIRUPHG DQG VLQFHLWZDVVSHFLDOO\EOHVVHGE\*RG LW¶ZRXOGFDXVHWKHUDLQ RIPHUF\ WR IDOO RQ WKH HQWLUH HDUWK· $V D UHVXOW RI WKLV ¶DOO NDILUVZRXOGEH PDGH0XVOLP· /LNH WKH&RPSDQLRQV KH DQGKLV IROORZHUV WRR ZRXOG IDFH VWLII RSSRVLWLRQ IURP WKH XQEHOLHYHUV DQG OLNH WKHP ZRXOG EH IRUFHG WR PLJUDWH IURP WKHLU KRPHV DQG XQGHUWDNH MLKDG ,Q WKH HQG KRZHYHU WKH\ ZRXOGEHWULXPSKDQW ¶FRQTXHULQJWKHODQGVRIWKHNDILUV· ,QWKLVPDQQHU WKH H[DPSOH RI WKH HDUO\ 0XVOLP FRPPXQLW\ RI WKH &RPSDQLRQV OHG E\ 0XKDPPDGZRXOG RQFH DJDLQ EH EURXJKW EDFN WR OLIH ,I WKH&RPSDQLRQV UHSUHVHQWHGWKH¶ILUVWFRPPXQLW\· DZZDOLQMDPD¶DW KHDQGKLVIROORZHUVZHUH WKH¶ODVW FRPPXQLW\· MDPD¶DWL DNKLULQ XVKHULQJ LQ WKH 'D\ RI -XGJHPHQW %RWK RI WKHP ZHUH LGHQWLFDO FRQVLVWLQJ ODUJHO\ RI SRRU DQG RSSUHVVHG EXW SLRXVEHOLHYHUV %RWKZHUHIUHHIURPWKHVWDLQRI¶VHFWDULDQLVP· FRQVLGHULQJDOO WKRVHZKRKDGUHFLWHGWKHNDOLPD DV0XVOLPV UHIUDLQLQJIURPSDVVLQJIDWZDVRI LQILGHOLW\DJDLQVWRWKHU0XVOLPV %RWKZHUHFKDUDFWHUL]HGE\DQ LQWHQVHIDLWK LQ ,VODP D SDVVLRQ WR VSUHDG WKH IDLWK ZLOOLQJ WR VXIIHU SHUVHFXWLRQ IRU WKH FDXVH DQG XQFRQFHUQHG ZLWK PXQGDQH SOHDVXUHV %RWK LQ DGGLWLRQ ZHUH ¶PHUFLIXOQDUDPXQWRWKHEHOLHYHUVDQGKDUGVDNKWWRZDUGVWKHGLVEHOLHYHUV· VWUXJJOLQJYDOLDQWO\LQ¶WKHSDWKRI$OODK· 5HIHUULQJWRWKHPRXQWLQJVHQVH RILQVHFXULW\DPRQJWKH0XVOLPV WKUHDWHQHGE\WKHJURZLQJSRZHURIPLOL WDQW+LQGXJURXSV 6LGGLT+XVVDLQDVVHUWHGWKDW¶>L@WLVDVLI6DWDQKDVEHHQOHW ORRVH LQ ,QGLD· DQG DUJXHG WKDW EHFDXVH RI WKLV *RG KDG ZLOOHG WKDW WKH

MDPD¶DWLDNKLULQ ZKLFKZRXOGKHUDOGWKH/DVW'D\DQGWKH'D\RI-XGJHPHQW ZRXOG QRZ DSSHDU LQ ,QGLD D JURXS RI WUXH¶VHUYDQWV RI ,VODP· NKDGLPDQL LVODPDQG¶ORYHUVRIWKH3URSKHW· ILGD\DQLUDVXO OHG RIFRXUVH E\KLP 7KLV KHFODLPHG ZDVDIXOILOPHQWRIWKHKDGLWK DFFRUGLQJWRZKLFK0XKDPPDGLV VDLGWRKDYHFRPPHQWHG¶,IHHOFRROEUHH]HFRPLQJIURP,QGLD·

,WZDVQRWE\KLVRZQZLOO KHLQVLVWHG WKDWKHKDGWDNHQXSRQKLPVHOIWKLV DUGXRXV WDVN 5DWKHU KH FODLPHG *RG +LPVHOI KDG ZLOOHG WKDW KH VKRXOG XQGHUWDNH WKLV PLVVLRQ RI VSUHDGLQJ ,VODP DQG H[WLUSDWLQJ GLVEHOLHI ¶7KLV MDPD¶DW· KHGHFODUHG UHIHUULQJWRKLV$QMXPDQ ¶KDVEHHQPDGHE\WKHKDQGV RI $OODK +LPVHOI · DQG WKDW LV ZK\ ¶EHFDXVH RI LWV HIIRUWV HDUWKTXDNHV DUH VKDNLQJWKHFLWLHVRINQRZOHGJHYLG\DQDJDURIWKHNDILUV ZKRDUHQRZWUHP EOLQJ ZLWK IHDU· ([SODLQLQJ WKH UHDVRQ IRU VHWWLQJ XS WKH $QMXPDQ KH FODLPHGWKDWWKH3URSKHW0XKDPPDGKDGKLPVHOIRUGHUHGKLPWR¶VWDQGXS· WR¶FRXQWHUWKHNDILUV· ZKRKDGH[FHHGHGDOOERXQGVLQRSSRVLQJDQGUHYLOLQJ ,VODP DQGWRVSUHDG,VODPDPRQJWKHP )RU0XVOLPVWRLJQRUHKLVFODLPV WKHQ ZRXOGEHWRRSSRVHZKDW*RGDQG+LV3URSKHWKDGZLOOHG 'HQ\LQJ WKDW KH ZDV DWWHPSWLQJ WR VHW XS D VHSDUDWH FRPPXQLW\ RI KLV

RZQ 6LGGLT+XVVDLQ DUJXHG WKDW ¶MXVW DV WKH GHQL]HQV RI KHDYHQ FDQQRW EH WDNHQRXWIURPWKHUH VR WRR WKHPLVVLRQDULHVRI,VODPFDQQRWEHGLYLGHGLQWR VHFWV· +HKDGFRPH KHGHFODUHG WR¶XQLWHWKHVHYHQW\WZR0XVOLPVHFWVLQWR RQH· -XVW DV WKH&RPSDQLRQV RI WKH 3URSKHW KDG DFFHSWHG DOO WKH SURSKHWV EHIRUH0XKDPPDG VRKHKHOGWKHOHDGHUVRIDOOWKHYDULRXV0XVOLPVHFWVLQ GHHSUHYHUHQFH DQGKLVPLVVLRQ KHLQVLVWHG ZDVWREULQJ0XVOLPVRIDOOVHFWV WRJHWKHU WRPDNHWKHP¶RQHVHFW· LGHQWLI\LQJWKHPVHOYHVVLPSO\DV¶0XVOLPV· GHGLFDWHG WR WKH FDXVH RI VSUHDGLQJ ,VODP +H HDUQHVWO\ HQWUHDWHG WKH 0XVOLPV WR UDOO\ EHKLQG KLV PLVVLRQDU\ FUXVDGH VD\LQJ ¶, UHTXHVW \RX WR UHPHPEHU WKDW \RXU JUHDWHVW IDYRXU WR WKHZRUOGZRXOG EH WR FRQYHUW WKH SHRSOHVRIWKHZRUOGWR,VODPDVVRRQDVSRVVLEOH· +HFODLPHGWKDWLWKDG EHHQUHYHDOHGWRKLPE\DGLYLQHVRXUFHWKDWKHZRXOGEHSXWLQFKDUJHRID ODUJHDUP\ OHDGLQJWKHIRUFHVRI,VODPLQDZRUOGZLGHZDUDJDLQVW&KULVWLDQLW\ LQ LQZKLFKDOOFRXQWULHVZRXOGSDUWLFLSDWH $WWKHHQGRI WKHZDU KH SUHGLFWHG DOPRVW DOO WKHZRUOGZRXOG FRQYHUW WR ,VODP DQG WKHQ KH LQ WKH IRUPRI'HHQGDU&KDQQDEDVDYHVZDUD ZRXOGHVWDEOLVKWKH¶HUDRIWUXWK· ¶SXUL I\LQJ WKHZRUOG IURP VLQ· XQLWLQJ¶DOO WKH FDVWHV LQWR RQH· E\ EULQJLQJ WKHP DOO LQWR WKH 0XVOLP IROG +H ZRXOG VHW DERXW ¶HVWDEOLVKLQJ ,VODP XSURRWLQJ LQILGHOLW\ LQQRYDWLRQ ELGD¶DW DQG SRSXODU FXVWRP ULYDM DQG WKH DQWDJRQLVPVRI FDVWHLVP ]DWSDW· +HZRXOGKHUDOG KHGHFODUHG DQHZHUD ¶HVWDEOLVKLQJKHDYHQRQHDUWK·

,QDQHIIRUWWRPRELOL]H0XVOLPVXSSRUWIRUKLVFDXVH 6LGGLT+XVVDLQPDGH YDLQDWWHPSWVWRZLQWKHIDYRXURIWKHUXOLQJ0XVOLPHOLWHVRI+\GHUDEDG ,Q KLV$¶DGDL,VODP KH ZURWH WKDW LQ UHVSRQVH WR KLV HDUQHVW SOHDV WR *RG WR ¶DSSRLQW D NLQJ WR DVVLVW KLP· KH UHFHLYHG GLYLQH VLJQDOV VXJJHVWLQJ WKDW WKH 1L]DP 0LU¶8VPDQ¶$OL.KDQ%DKDGXU KDGEHHQDSSRLQWHG IRU WKLV WDVNE\ *RG 7KH1L]DPVHHPV KRZHYHU QRWWRKDYHWDNHQWRRNLQGO\WR6LGGLT

+XVVDLQ·V DFWLYLWLHV IRU DV ZH KDYH VHHQ KH VHQWHQFHG KLP WR VHYHUDO ORQJ VSHOOV LQ MDLO IRU DOOHJHGO\ GLVWXUELQJ WKH SHDFH DQG LQIODPLQJ FRPPXQDO SDVVLRQV 6LGGLT+XVVDLQVHHPVWRKDYHKDGPRUHVXFFHVV KRZHYHU LQZLQQLQJ VXSSRUW DPRQJ VRPH VHFWLRQVRI+\GHUDEDG·V0XVOLPQRELOLW\ WKUHDWHQHGDV WKH\ZHUH DW WKLV WLPHZLWK$U\D DJLWDWLRQ LQ WKH VWDWH DQG JURZLQJ XQUHVW DPRQJWKH1L]DP·V+LQGXVXEMHFWV 7KXV LQ LQUHDFWLRQWRD ODUJHUDOO\ RI+LQGXVRUJDQL]HGLQ+\GHUDEDGLQSURWHVWDJDLQVWKLVERRN6DUZDUL¶$ODP -DJDW*XUX 6LGGLT+XVVDLQLVVXHGDQDSSHDOWRWKH0XVOLPVRIWKHFLW\WRXQLWH RQDFRPPRQSODWIRUPWRFRXQWHU WKHHIIRUWVRI WKRVHZKRZHUH¶RSSRVLQJ WKH0XVOLPV·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

+LMUDK DQGMLKDG ,QWKHLUZULWLQJV$QMXPDQVRXUFHVGHVFULEH6LGGLT+XVVDLQ·VPLJUDWLRQ DORQJ ZLWK VHYHUDO RI KLV FORVH IROORZHUV WR <DJKHVWDQ DV DQ HPXODWLRQ RI WKH 3URSKHW·VKLMUDK IURP0HFFDWR0HGLQD DQGSUHVHQWWKLVDVIXUWKHUSURRIRIKLV VXSSRVHG GLYLQH PLVVLRQ IRU LQ WKLV PDQQHU DV LQ VR PDQ\ RWKHUV LW LV VXJJHVWHG *RG KDGZLOOHG WKDW KH VKRXOG IROORZ WKH 3URSKHW·V H[DPSOH ,Q KHDGLQJIRUWKH3DWKDQERUGHUODQGV 6LGGLT+XVVDLQZDVIROORZLQJLQWKHSDWK RIRWKHUFKDULVPDWLF,VODPLFKHURHVEHIRUHKLP PRVWQRWDEO\WKHHLJKWHHQWK FHQWXU\ 6D\\HG $KPDG RI %DUHLOO\ ZKR VRXJKW WR XVH KLV EDVH DPRQJ WKH ZDUOLNH3DWKDQVWRODXQFKDMLKDG DJDLQVWWKH6LNKVLQWKH3XQMDE /LNH6D\\HG $KPDG 6LGGLT+XVVDLQ WRR LQWHQGHGWRVWLUXSWKH3DWKDQVDQG DWWKHKHDG RIDJUDQG3DWKDQDUP\ GHVFHQGWRWKH,QGLDQSODLQV SUHVXPDEO\ WRILJKWWKH %ULWLVK DQG RWKHU QRQ0XVOLP SRZHUV DQG HVWDEOLVK ¶,VODPLF· UXOH LQ WKH FRXQWU\ ZLWKKLPVHOIDVWKH,PDP $QMXPDQ VRXUFHVGRQRW UHYHDOPXFKDERXW6LGGLT+XVVDLQ·V DFWLYLWLHV LQ

<DJKHVWDQ EXW DVDOZD\V JURVVO\H[DJJHUDWHKLVVXFFHVVHV 7KXV DFFRUGLQJWR RQHVRXUFH VRRQDIWHUKHUHDFKHG<DJKHVWDQ¶PDQ\QDZDEV EDGVKDKVDQGVDUGDUV DFFHSWHG KLP DV WKH LPDP XO MLKDG DQG VFRUHV RI 3DWKDQV WRRN EDL¶DW DW KLV

KDQGV· $FFRUGLQJ WR DQRWKHU VRXUFH VRPH PLOOLRQ 3DWKDQV DUH VDLG WR KDYH MRLQHG KLV¶PLVVLRQ RI MLKDG· +H WKHQ UHSRUWHGO\ GLVSDWFKHG VHYHUDO GHOHJDWLRQV RI KLV IROORZHUV WR YDULRXV IUHH 3DWKDQ WULEHV ZLWK D VSHFLDO RUGHU DSSHDOLQJ WR WKHP WRSUHSDUH WKHPVHOYHV WRSDUWLFLSDWH LQ WKH MLKDG DV ¶KRO\ ZDUULRUV· JKD]L\DQL LVODP +H DOVR ZURWH WR =DKLU 6KDK UXOHU RI $IJKDQLVWDQ DVZHOODV VHYHUDO3DWKDQFKLHIWDLQV LQYLWLQJ WKHP WR MRLQ LQ WKH SURSRVHG MLKDG 2Q -XO\KH DQQRXQFHG LQ IURQWRI D ODUJHJDWK HULQJRIKLVIROORZHUVWKDWKHKDGUHFHLYHGDGLYLQHUHYHODWLRQLOKDPWKDWDOO RI ,QGLD ZRXOG VKRUWO\ FRQYHUW WR ,VODP ¶5HMRLFH 2K 0XVDOPDQV· KH GHFODUHG WR WKH REYLRXV GHOLJKW RI KLV IROORZHUV ¶>W@KHZKROH RI ,QGLD ZLOO VRRQ WXUQ0XVOLP· 3UHVXPDEO\ WKH WLPHZDVQRZULSH IRU WKH MLKDG +LV VWLUULQJXSRIWKH3DWKDQVIRUZDU LWLVVDLG ZDVQRZWDNHQVHULRXVQRWHRIE\ %ULWLVKDXWKRULWLHV ZKR LW LVFODLPHG LQ$QMXPDQVRXUFHVZLWKPXFKSULGH EUDQGHGKLPDV¶WKHPRVWGDQJHURXVHQHP\RIWKH%ULWLVK(PSLUH· GHFODULQJ WKDWKHZDVIRUELGGHQWRHQWHU%ULWLVK,QGLD ,Q)DULG.KDQ WKH1DZDE RI 'DUEDQG XQGHU LQVWUXFWLRQV IURP WKH %ULWLVK FDSWXUHG 6LGGLT +XVVDLQ DORQJZLWKIRXURIKLVFORVHIROORZHUV ZKLOHKHZDVDVOHHSLQDUHPRWHYLOODJH DQGKDQGHGKLPRYHUWRWKH%ULWLVKDXWKRULWLHV ,QWXUQ WKH%ULWLVKDUUDQJHG IRU6LGGLT+XVVDLQWREHVHQWWR+\GHUDEDG ZKHUHWKH\LQVWUXFWHGWKH1L]DP WRNHHSKLPLQVROLWDU\FRQILQHPHQWDWWKH7KXJHH-DLO +HZDVODWHUUHOHDVHG LQ EXWIRUELGGHQWROHDYHWKHFRQILQHVRIWKH1L]DP·V'RPLQLRQV

)ROORZLQJKLVUHOHDVHIURPMDLO 6LGGLTFRQWLQXHGWRPDLQWDLQFRQWDFWVZLWK KLV IROORZHUV LQ <DJKHVWDQ ,Q KH VHW XS D PLOLWDU\ WUDLQLQJ FHQWUH DW +\GHUDEDG ZKLFKKH FKULVWHQHG WKH7DKULN -DPL¶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¶PDGH VHYHUDO WKRXVDQG FRQYHUWV IURP DPRQJ WKH +LQGXV· )XUWKHU KH GLVSDWFKHG OHWWHUV WR RU SHUVRQDOO\ PHW VHYHUDO ,QGLDQ DQG %ULWLVK OHDGHUV DVNLQJ WKHP WR FRQYHUW WR ,VODP LQFOXGLQJ *DQGKL WKH 9LFHUR\ PHPEHUVRIWKH&ULSSV0LVVLRQ DQG.LQJ*HRUJH9 7RWKH ODWWHU KH GHFODUHG WKDW LI KH UHOHQWHG DQG DFFHSWHG ,VODP KLV HPSLUH ZRXOG SURVSHU 2QWKHRWKHUKDQG LIKHUHIXVHGWRGRVRKLV LPSHULDOJORU\ZRXOG VRRQYDQLVK $QMXPDQVRXUFHVFODLPWKDWWKHVXEVHTXHQWGLVLQWHJUDWLRQRIWKH %ULWLVK (PSLUHZDV D FRQVHTXHQFH RI WKH KDUGKHDUWHG%ULWLVKPRQDUFK QRW KHHGLQJ6LGGLT+XVVDLQ·VZDUQLQJV

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·VRULJLQDODJHQGDRISURSDJDWLQJWKHPHVVDJHRI6LGGLT+XVVDLQDQG KLVRZQHFFHQWULFLQWHUSUHWDWLRQRI,VODP %\WKHHQGRIILHUFHULRWLQJEHWZHHQ+LQGXVDQG0XVOLPVKDGVSUHDG

DOO RYHU ,QGLD DQG+\GHUDEDG DOWKRXJK VWLOO XQGHU WKH UXOH RI WKH0XVOLP 1L]DP ZDV QRW OHIW XQDIIHFWHG /DUJHVFDOH PDVVDFUHV RI 0XVOLPV LQ WKH ZHVWHUQ0DUDWKLVSHDNLQJGLVWULFWVRIWKH1L]DP·V'RPLQLRQVZHUHUHSRUWHG DQ DUHDZKHUH0XVOLPVZHUH D VPDOOPLQRULW\ DQGZKHUH+LQGX FKDXYLQLVW JURXSVKDGPDQDJHGWRVHFXUHDILUPEDVHIRUWKHPVHOYHV ,QUHVSRQVH VHFWLRQV RIWKH0XVOLPHOLWHLQ+\GHUDEDGEHJDQVSRQVRULQJDPLOLWDQW0XVOLPRUJD QL]DWLRQ WKH 5D]DNDUV 9ROXQWHHUV OHG E\ .DVLP 5L]YL ZKLFK ZDV UHVSRQVLEOH IRU VHYHUDO DWWDFNV RQ+LQGXV 5HDFWLQJ WR WKHPDVVDFUHV RI WKH 0XVOLPV 6LGGLT+XVVDLQ DSSHDOHG WR KLV IROORZHUV WR FRPPHQFH¶GHIHQVLYH ILJKWLQJ· DJDLQVW¶WKHHQHPLHVRI,VODP·

:LWKWKH%ULWLVKKDYLQJOHIW DOPRVWDOO,QGLDQQDWLYHVWDWHVZHUHLQFRUSR UDWHGLQWRWKH,QGLDQ'RPLQLRQ 7KH1L]DPRI+\GHUDEDG KRZHYHU UHIXVHG KRSLQJWRVWD\LQGHSHQGHQWRUHOVHWRMRLQ3DNLVWDQ ,QODWH,QGLDUHDFWHG E\ RUGHULQJ ZKDW KDV FRPH WR EH NQRZQ DV WKH 3ROLFH $FWLRQ LQ ZKLFK ,QGLDQ WURRSV RYHUUDQ +\GHUDEDG LQ D VKRUW DQG VZLIW PRYH 7KH 1L]DP·V IRUFHV MRLQHGE\ WKH5D]DNDUV SXWXSDZHDNGHIHQFH EXWZHUH VRRQRYHU SRZHUHG E\ WKH ,QGLDQ VROGLHUV $FFRUGLQJ WR $QMXPDQ VRXUFHV 6LGGLT +XVVDLQDQGKLVIROORZHUV²ZKR LWLVLQWHUHVWLQJWRQRWH KDGEHHQDUUHVWHGE\ WKH 1L]DP HDUOLHU WKDW \HDU DQG ZKRVH RUJDQL]DWLRQ KH KDG EDQQHG ² IRXJKW WKH ,QGLDQ IRUFHV RQ WZHQW\VHYHQ GLIIHUHQW IURQWV EXW ZHUH VRRQ FDSWXUHGDWWKHLUKHDGTXDUWHUVDW$VLI1DJDU

:KHQ WKH .KDQTDKL 6DUZDUL ¶$ODP -DJDW *XUX $VKUDP IHOO LQWR WKH KDQGVRIWKH,QGLDQWURRSV 6LGGLT+XVVDLQRUGHUHGDOOKLVPDOHIROORZHUVDJHG EHWZHHQDQGWRDFFRPSDQ\KLPWRSULVRQ $VSHFLDOWULEXQDOZDVLQVWL WXWHGWRWU\DFDVHDJDLQVWKLP LQIURQWRIZKLFKKHXQKHVLWDWLQJO\GHFODUHG VR $QMXPDQVRXUFHV VD\ WKDWKHKDG LQGHHG IRXJKW WKH,QGLDQ$UP\ ¶LQDFFRU GDQFHZLWK WKH VXQQDK RI WKH3URSKHW0XKDPPDG· 7KH WULEXQDO LW LV VDLG ZDV ODWHU GHFODUHG LOOHJDO RQ WHFKQLFDO JURXQGV DQG FRQVHTXHQWO\ 6LGGLT +XVVDLQZDVDEVROYHGRIDOOFKDUJHVDQGUHOHDVHG LQHDUO\ DORQJZLWKKLV IROORZHUV 2QKLVUHOHDVHKHLVVDLGWRKDYHDGGUHVVHGDODUJHJDWKHULQJDWD PRVTXH DWWHQGHG DPRQJRWKHUV E\VRPHPHPEHUVRIWKHHUVWZKLOH1L]DP·V FDELQHW ZKHUHKHGHFODUHG ¶1RJRYHUQPHQWFDQDUUHVWPH ,VKDOOXSURRWLQIL

GHOLW\DQGGLVEHOLHI 1RZWKHRQO\ZD\IRU,QGLD·VVDOYDWLRQLVWRWXUQ0XVOLP 7KHGD\LVQRWIDURIIZKHQWKHZKROHRI,QGLDVKDOODFFHSW,VODP·

6LGGLT+XVVDLQ·VUHPDLQHGDOLYHIRUKDUGO\WZRPRQWKVDIWHUKLVUHOHDVH EXW GXULQJ WKLV SHULRG LV VDLG WR KDYH SUHSDUHG DQ DPELWLRXV SURJUDPPH IRU PLVVLRQDU\ ZRUN LQ ,QGLD EHVLGHV JLYLQJ OHFWXUHV RQ WKH 4XU¶DQ WR KLV IROORZHUVDQGGLVSDWFKLQJKLVPLVVLRQDULHVWRYDULRXVSODFHV ,QUHVSRQVHWRWKH FKDQJHGSROLWLFDOFRQWH[W ZKHQWKHDJJUHVVLYHSURVHO\WLVPVWUDWHJ\RIWKHSDVW ZDVQRORQJHUIHDVLEOH ZLWK0XVOLPVLQSRVW,QGLDDWKUHDWHQHGLQVHFXUH PLQRULW\ 6LGGLT+XVVDLQSUHSDUHGDQHZPHWKRGRIPLVVLRQDU\ZRUNIRUKLV IROORZHUVWRDGRSW PHDQW KHVDLG QRWMXVWIRU,QGLD EXWIRUWKHHQWLUHZRUOG 7KLVKHJDYH WKHQDPHRI WKH SDQFK VKDQWLPDUJ ¶)LYH3LOODUVRI WKH:D\RI 3HDFH· WKH6DQVNULWQDPHEHLQJ LW VHHPV GHOLEHUDWHO\ FKRVHQ WR FRPPHQG WKH$QMXPDQ WR WKH+LQGXV DOWKRXJK LW DSSHDUV WRKDYHEHHQPRGHOOHGRQ WKH¶ILYHSLOODUV· RI6XQQL,VODP 7KHVHFRQVLVWHGRI

‡ HNRMDJDGLVKZDU WDXKLG EHOLHILQWKH2QH*RG ‡ HNR MDJDW JXUX EHOLHI LQ0XKDPPDG WKH¶VHDORI WKHSURSKHWV· NKDWPDO QDEL\\LQ DVWKH¶:RUOG7HDFKHU·

‡ VDUYDDYDWDUVDW\D EHOLHILQDOOWKHSURSKHWVDVWUXH ‡ VDUYDGKDUPDJUDQWKVDW\D EHOLHILQDOOUHOLJLRXVVFULSWXUHVDVWUXH ‡ VDPPHODQSUDUWKDQD ¶FROOHFWLYHSUD\HU· ²LQRWKHUZRUGV QDPD] WKH,VODPLF

IRUPRISUD\HU

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

KLV NKDQTDK FRPSOH[ +H ZDV VXUYLYHG E\ IRXU ZLYHV ILYH VRQV DQG WKUHH GDXJKWHUV )RXURIKLV ILYH VRQVPLJUDWHG WR3DNLVWDQ LQ WKHZDNHRI DPDVV H[RGXVRI+\GHUDEDGL0XVOLPQRELOLW\ WR WKHQHZO\FUHDWHGFRXQWU\ LQ WKH DIWHUPDWK RI WKH ,QGLDQ DQQH[DWLRQ RI WKH VWDWH 2QH RI KLV VRQV $PDQDW +XVVDLQ VWD\HGEHKLQGLQ+\GHUDEDG DQGLVFXUUHQWO\WKHVXSHUYLVRUQD]LP RIWKH$QMXPDQ 6LGGLT+XVVDLQZDVVXFFHHGHGE\KLVFKLHINKDOLID 6D\\HG ¶$PLU +XVVDLQ DV WKH KHDG RI WKH ,QGLDQ EUDQFK RI WKH $QMXPDQ 8QGHU 6D\\HG¶$PLU WKH$QMXPDQFRQWLQXHG WKHPLVVLRQDU\DFWLYLWLHVEHJXQE\ LWV IRXQGHU EXWUDWKHUWKDQDGRSWLQJWKHDJJUHVVLYHPRGHRISUHDFKLQJWKDWFKDU DFWHUL]HGPXFKRI6LGGLT+XVVDLQ·V OLIH WKH$QMXPDQQRZVRXJKW WRSURMHFW

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

WKH SDQFK VKDQWL PDUJ E\ 6LGGLT+XVVDLQ WKH $QMXPDQ DXWKRULWLHV EDVHG DW WKHLU KHDGTXDUWHUV DW $VLI 1DJDU +\GHUDEDG IRFXVHG WKHLU HQHUJLHV RQ WUDLQLQJ D EDQG RI FRPPLWWHG PLVVLRQDULHV WR VSUHDG WKH WHDFKLQJV RI WKH IRXQGHU XVLQJ YDULRXV LQQRYDWLYH PHDQV $ QXPEHU RI PHPEHUV RI WKH $QMXPDQVHWWOHGGRZQLQWKHYLFLQLW\RIWKH.KDQTDKL6DUZDUL¶$ODP-DJDW *XUX$VKUDP ZKHUH WKH\ VHWXS D VPDOO FRPPXQLW\ FORVHO\NQLWE\ WLHVRI IDLWK DQG NLQVKLS ,QVLGH WKH NKDQTDK D ODUJH PRVTXH ZDV FRQVWUXFWHG LQ ZKLFK LQDGGLWLRQWRWKHULWXDOSUD\HUV SURYLVLRQZDVPDGHIRU WKHUHOLJLRXV LQVWUXFWLRQ RI FKLOGUHQ RI WKH FRPPXQLW\ DV ZHOO DV IRU WKH WUDLQLQJ RI PLVVLRQDULHV 7KH\ ZHUH WDXJKW WKH 4XU¶DQ DQG +DGLWK DV ZHOO DV WKRVH SRUWLRQV RI WKH +LQGX VFULSWXUHV WKDW WKH\ EHOLHYHG IRUHWROG WKH DUULYDO RI 0XKDPPDG DQGRI 6LGGLT+XVVDLQ DV'HHQGDU&KDQQDEDVDYHVZDUD $ VHSD UDWH VPDOOPRVTXHZDVDOVRHVWDEOLVKHGIRUZRPHQRIWKHFRPPXQLW\ DVZHOO DVDOLEUDU\DQGDFRPPXQLW\NLWFKHQODQJDU ,WZDVHVWLPDWHGWKDWE\WKHODWH VWKH$QMXPDQKDGVRPHPHPEHUV PDLQO\LQ+\GHUDEDG DQG LQVHYHUDOWRZQVDQGYLOODJHVLQWKHIRUPHU1L]DP·V'RPLQLRQV QRZSDUWRI $QGKUD3UDGHVK QRUWKHUQ.DUQDWDND DQG VRXWKHUQ0DKDUDVKWUD DVZHOO DV D VPDOOQXPEHULQ7DPLO1DGX $PRQJWKHVHZHUHVRPHIXOOWLPH URYLQJ PLVVLRQDULHV ,Q3DNLVWDQ ZKHUH IRXURI 6LGGLT+XVVDLQ·V VRQV VHWWOHG WKH $QMXPDQ ZDV OHG E\ RQH RI WKHP =LD XO+DVDQ EDVHG DW 0DUGDQ LQ WKH 3DWKDQERUGHUODQGV ZKHUHKHLVVDLGWRKDYHUHYLYHGKLVIDWKHU·VPLOLWDQWRXWILW WKH -DPL¶DWL +L]EXOODK /LWWOH LV NQRZQ DERXW WKH FRPPXQLW\ LQ 3DNLVWDQ $FFRUGLQJWRDUHSRUWLQDQ,QGLDQ0XVOLPPDJD]LQH LQ3DNLVWDQWKHFRPPX QLW\KDVIDFHGVRPHRSSRVLWLRQEHFDXVHRIVRPHRILWVDSSDUHQWO\¶+LQGXLVWLF· EHOLHIV DQG SUDFWLFHV DQG WKHUH KDYH UHSRUWHGO\ EHHQ¶RIILFLDO DQG XQRIILFLDO WKUHDWV· WRH[FRPPXQLFDWHLWIURPWKHIROGRI,VODP DVKDVEHHQGRQHLQWKH FDVHRIWKH$KPDGLVLQWKHFRXQWU\

:KLOH FDUU\LQJ RQ DIWHU 6LGGLT +XVVDLQ·V GHDWK ZLWK PLVVLRQDU\ ZRUN DPRQJWKH+LQGXV WKH,QGLDQEUDQFKRIWKH$QMXPDQVRXJKWWRXVHSHDFHIXO PHWKRGV RI SHUVXDVLRQ WR DSSHDO WR LWV DXGLHQFH SUHVHQWLQJ ,VODP DV EXW D IXOILOPHQW RI WKH SURSKHFLHV RI WKH+LQGX VFULSWXUHV $QMXPDQPLVVLRQDULHV YLVLWHG +LQGX WHPSOHV DQG DWWHQGHG ODUJH +LQGX UHOLJLRXV FRQJUHJDWLRQV VHWWLQJXS WKHLU ERRNVWDOOV DQG OHFWXULQJ ZKHUHYHU DOORZHG RQ WKHLU EHOLHIV SODFLQJ SDUWLFXODU IRFXV RQ WKHLU FODLPV WR XQLYHUVDO EURWKHUKRRG DQG WKH SULQFLSOHV RI WKH SDQFK VKDQWLPDUJ ¶:HKDYHQRW OHIW D VLQJOHPXWWK WHPSOH

FKXUFK RU JXUXGZDUD LQ ,QGLD XQWRXFKHG· ZURWH DQ $QMXPDQ DFWLYLVW LQ REYLRXV H[DJJHUDWLRQ ¶ZLWKRXW H[SODLQLQJ WKHUH WKH JORU\ RI 0XKDPPDG SHDFH EH XSRQ KLP·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¶LQWHUQDWLRQDO UHOLJLRXV FRQIHUHQFH· ED\Q DODTZDPL PD]KDEL FRQIHUHQFH RQ 5DMDEHYHU\\HDU PDUNLQJWKHGDWHRI6LGGLT+XVVDLQ·VGHDWK DSUDFWLFHWKDW 6LGGLT+XVVDLQKDGKLPVHOIVWDUWHGLQ 6SHDNHUVIURPGLIIHUHQWUHOLJLRXV WUDGLWLRQVZHUH LQYLWHG WR VSHDN DERXW SDUWLFXODU LVVXHV IURP WKHLU RZQ UHOL JLRXVSHUVSHFWLYHV 7KLV KRZHYHU ZDVFOHDUO\VHHQDVDPHDQVRI SXWWLQJWKH $QMXPDQ·VYHUVLRQRI,VODPDFURVVWRDQRQ0XVOLPDXGLHQFH 7KHDFWXDODLPV RI WKH $QMXPDQ UHPDLQHG ODUJHO\ WKH VDPH DQG VRPHWLPHV LWV DJJUHVVLYH PLVVLRQDU\ DJHQGD DQG LWV KRVWLOLW\ WR RWKHU IDLWKV GHVSLWH LWV FODLPV WR WKH FRQWUDU\ ZHUH FOHDUO\ HQXQFLDWHG DV ZKHQ LQ DW WKH FRQFOXVLRQ RI D WRXURI$QMXPDQPLVVLRQDULHVRI$QGKUD3UDGHVK .DUQDWDNDDQG0DKDUDVKWUD D UDOO\ZDV RUJDQL]HG E\ WKH $QMXPDQ LQ0XPEDL ZKHUH LW ZDV IRUFHIXOO\ GHFODUHGWKDW ¶7KH+LQGXUHOLJLRQGKDUPDLVQRUHOLJLRQDWDOO ,QWKHHQG DOO +LQGXVZLOO KDYH WR FRQYHUW WR ,VODP EDO DNKLU KLQGXRQ NR LVODP TDEXO NDUQD SDGHJD· 3URVHO\WLVP LV VWLOO WKH UHDO JRDO RI WKH$QMXPDQ IRU DV D UHFHQW $QMXPDQVRXUFHSXWVLW ¶*RGZLOOLQJ RXUZRUNVKDOOFDUU\RQWLOODOORI,QGLD EHFRPHV0XVOLP·

7KH $QMXPDQ FRQWLQXHG WR DSSHDO WR WKH 0XVOLPV IRU VXSSRUW LQ LWV PLVVLRQDU\ZRUN EXWVHHPVWRKDYHHYRNHGOLWWOHUHVSRQVH ,WUHLWHUDWHG6LGGLT +XVVDLQ·V LQVLVWHQFH WKDW WKH $QMXPDQ UHVSHFWHG WKH IRXQGHUV RI DOO WKH YDULRXV 0XVOLP VHFWV 7KXV VHHNLQJ WR SURMHFW D EURDGEDVHG HFXPHQLVP DSSHDOLQJ WRDOO0XVOLPJURXSV LWFODLPHGWKDW LWKHOG LQHTXDO UHVSHFW VXFK PXWXDOO\ RSSRVHG ILJXUHV DV ,PDP$KPDG5D]D.KDQ IRXQGHU RI WKH 6XIL %DUHOZL VFKRRO DQG 5DVKLG $KPDG *DQJRKL 4DVLP1DQRWDZL DQG $VKUDI ¶$OL7KDQDZL OHDGLQJOLJKWVRIWKH'HREDQGVFKRRO ,WDOVRLQVLVWHGWKDWLW GHHSO\UHYHUHGWKHILHUFHO\DQWL6XIL6DQDXOODK$PULWVDULRIWKH$KOL+DGLWK 6D\\HG $EXO ¶$OD 0DXGXGL RI WKH -DPD¶DWL ,VODPL DQG 0XKDPPDG ,O\DV IRXQGHU RI WKH 7DEOLJKL -DPD¶DW $OO WKHVH ILJXUHV LW FODLPHG ¶ZHUH WUXH 0XVOLPV· DQGLWDVVHUWHG ZLWKDGLVWLQFWIHHOLQJRISULGH WKDWEHFDXVHRIWKLV WKH$QMXPDQKDG XQOLNHPDQ\RWKHU0XVOLPV LQFOXGLQJHYHQVRPHRIWKHVH UHYHUHG0XVOLPOHDGHUV QHYHUEHHQJXLOW\RILVVXLQJIDWZDVRILQILGHOLW\DJDLQVW DQ\RIWKHP &OHDUO\ DVLQ6LGGLT+XVVDLQ·VWLPH WKLVZDVDQHIIRUWWRPDNH D EURDGEDVHG DSSHDO WR DOO 0XVOLPV FRQYHQLHQWO\ SDSHULQJ RYHU ILHUFH

LQWHUQDOVHFWDULDQGLYLGHV <HWWKHVHDSSHDOV VHHPWRKDYHIDOOHQRQGHDIHDUV DQGQXPHURXV IDWZDV GHFODULQJ WKH IROORZHUV RI WKH$QMXPDQ WR EHKHUHWLFV ZHUHGHOLYHUHGE\6XQQL¶XODPD )URP WKH H[WHQVLYH SUHVV FRYHUDJH LQ RI WKH $QMXPDQ IROORZLQJ

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¶IROORZHUV RI5DPD· UDP EKDJDWV WR GHVLVW IURP WKHLU DWWDFNVRQ WKH0XVOLPV DQG WKHLUGHVLJQVRQ WKHPRVTXH DSSHDOLQJ WR WKHP LQVWHDG WR¶IROORZ WKH WHDFKLQJVRI5DPML E\SUD\LQJ LQ WKHPDQQHU WKDW KH KDG WDXJKW WKH VDPPHODQD SUDUWKDQD· UHIHUULQJ WR 6LGGLT +XVVDLQ·V FODLP WKDW5DPDKDG WDXJKW WKH ,VODPLF IRUPRIZRUVKLS² QDPD] ² WR WKH PRQNH\JRG+DQXPDQ 7KHVHSOHDVKDG RIFRXUVH QRLPSDFWRQWKH+LQGX PLOLWDQWVRURQWKH+LQGXVPRUHJHQHUDOO\ :LWKWKHUDSLGHVFDODWLRQRIDWWDFNVRQ0XVOLPVLQODUJHSDUWVRI,QGLDDIWHU

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¶HQHPLHV· RI WKH IDLWK WKHQDUPHGMLKDG VHHPHGWKHRQO\ZD\RXW ,QWKLV WKHDFFXVHGDFWLYLVWVRIWKH $QMXPDQ PLJKW KDYH VRXJKW WR JR EDFN WR WKH PLOLWDQW SKDVH RI 6LGGLT +XVVDLQ·V RZQ OLIH RVFLOODWLQJ DV LW GLG EHWZHHQ GLDORJXH DQG YLROHQFH $V VXFK WKHQ WKHUHVHHPVWRKDYHEHHQQRLQKHUHQWWHQGHQF\LQWKHPRYHPHQW WRWDNHWRWKHSDWKRIYLROHQFHDQGFRQIOLFW 5DWKHU DVZHKDYH VXJJHVWHG LWV

RZQDSSURDFKWRLQWHUIDLWKUHODWLRQV VKLIWLQJEHWZHHQGLDORJXHDQGPLOLWDQF\ DW GLIIHUHQW SRLQWV LQ WLPH VHHPV WR KDYH EHHQ GHWHUPLQHG SULQFLSDOO\ E\ D FKDQJLQJSHUFHSWLRQRI WKH WKUHDWVSRVHG WR,VODPDQG WKH0XVOLPFRPPX QLW\IURPDJJUHVVLYHO\DQWL0XVOLP+LQGXTXDUWHUV