Free Motion for Summary Judgment - District Court of Colorado - Colorado

Case 1:04-cv-00725-RPM

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Case 1:04-cv-00725-RPM
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DlsrRlcrcouRT
CITY & COTJNTY DENYBR. OF COLORADO

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r'roiiADo

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Buildhg, RE. 255 City ad Couoty 1437 BaroockStreet CO Deover, 80202 a Pctitio&r:THEQInZNO'S CORPOMTION, corporation Colorado WILLIAMS.FAGAN, req. ?t Respondents:
capital, A. Ard|sEong, Jaol$ A, Dvorak,Fagan Irrc., Iaura ApplebyFegatr An&a3[rwson ard JayS. Horowilz, f7467

william s. Faga& Carol I Attomrys Rsspordeot! for

c'3e Nunbet:02 Cv 2598

Wake Fo$es & Horowitr I 370Sventeruh Suitc Strct, 3950 Denver. 8(n02 Coloredo 303572-5lm(relcph@) ll 303572-51 (facsirniL) jllars}lilz@lglsleJrcs!!;pforbr6@bqdglaw,con

Div.:

Ctrm.:I

TIIE FAGANGROI'P'SPOST-TRIAL THE RFSPONDEM OF BRIEF/STATEMENT PO$TION Dated:

Decenber 2m3 12. Dctrvcr, Colorado
lly Respctfu submitled, HOROVITZWAKE& FORBES lfril6? JayS. Horowitz, StreeL Sxite3950 370Sevonteoth colorado80202 Denver, 303572-5lm (telQhoDe) (hcstuile) 572-5111 3O3 Group Thp for Atlomeys Rcspoodent Fagatr

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TABLEOF CONTENTS I SUMMARY THEFAGAN ................................................ OF GROIJP' S K)SITTON ARGIJMENT........... . .. . . ...- .. . , ...... . . . .. . . . 4

Coopaly A, Quiano's Was,A! Of Dcceabe! 2001,A HighlyValuable 21, Mcthodologies, More EvPn By Valuation WheoValued Ordrcdox BusiDess GtowthQoizno's Valuable Whe! Coniidention Pall To TheAccelefated Is 2l HadIn FsctRealized , &forc Decrnbq , 2001 Ald ExtraordiErily Huge 21, Valuable WhenQuino's Prc-Dember 2001PlanrTo Gercrate Are ProfitsFromAFD ArrdTo FuodA National Advertistu Campaign ... ....'.,..5 Con!ide!ed..,......,..... 1. h Adjusted Two owl ProjctioB, EvenWrD OneAccepts Quizoo's "Fair Valuation, Rspects OfBusiness RequLd Ptircipl By Qrizoo's Value"A5OfDces$er21.2001Is$46.41.....,...................,.............5 (a) Mr, cord8' ..... .'.'.........5 of C.lculation Quizoo's 96.41FairValse.

By Requited O) ThcTwo Adjusmc s To Qulzoo'!ho.iectionr BusiressValuationPrilciples......,..,........,..,...................,.'.'.....7 Wher Pro.Pcrrd GrowlhAs OfMarch,2ml, Partiqrlady Quiznoh And Stream8 c-onsidred TogetrEr Reverue With Quizro'sPredictablc Mr, Manageably Debt,Fully Suppons Cordes' $46.41 bw Quiano's Fairvaluc. Quizoo's Rdolrz.d Grow6, AodQqiznokProperly Cordes' GrowlhBeforc Dcembr 2001,Fully Suppors 21, Crlculated . . . . . . . . . , . . - . . . . . . . . . , . ...,...I.I. . . $ 6 3 . 8F s i r V a l u e , , . , . . 1 (a) Quiao'E Projccted Opinion Mt. Growtb Fhly Supports Cordes' ......... .,........................... ll vrluiog Per Ai $46.41 Sbar. Quizno's Ac$al GroMwth RedizedBcloteiqnbt 2l,2f/|,l, O) Quizno's FirDly Ettablisbed Mr, By Wlich Acn$fly ExcdedTle Growth I i'F Analysis, At ValuiogQuizoo'E Corde3' Ttend Rr0y S\rpporb ..... ... ...... ,-......... 16 Per $63.81 Share.....,.. 3 . In TheFiul AmlysisThen 'Fsir Value' Of Quizm'sAs Of Decinber2f. 2@l Bxcedr Wle! OE Ererniner $63.91 Ouizro's 2001Plans Its Post-Mcrge! For Wdch Orizlo's Did Not Aativities 19 21, Mer9ei,........-,......... Publtcly RewalUlril AfterTheDecobcr 2001 (a) A Conplete 21, ADpr|isal OfQuizro'sAs Of Decembcr 2001 Atr Requirs AnrlysisOf AFD, Quiztrot C.sh-GeErating Subsidiary.......,,....,. ....,..,.,,...............,,..19

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Bfore (b) Docllmor EvideDcc That Estrblishs Quino's Belicved, ary Decamber , 2001 ThatAFD WouldM.teri.lly Iocrase 2l , . Value".,.........',,.,,... . .. 22 Profits Quizlo's'Fair Ard Quizro'r "Fair vdue" Bars Relrtiorship TheMalkethice of To No Quirno's Economic The Rellcld Company's Stock WhichNever Quizoo's Its Lifile Efron To Publiciz Economic Suc.cess. Made Qoizno's Success TheMar&et ThaiTte M|rket PdccWouldReflect To so "Fair ..............'....'.......,.'..'..27 .Q u i z t r o ' s V a l u e " Of Ald Assuropliols The Of A Syoopsis Tbekincipal Cbaracterisi$ '.. 30 Varying"FairVahle"Otinio$PrcsentedToTb.Coun....-............... was Schene Not htrndedTo, Nor Did It, B. ThESchaders' 2001"Take-Over' 'Establisl "Fair value". Thc$8.50"Mergr WasMerely Pr.ice" Quizno's Who Wh{t TheSchadens Dcided Pry To Stockbolders HadNo Choict To .........32 ...,.................... BulTo Ac{.pt That Number By "Special 1. Quizno's $8.50McrgerPricewasRecommeDdedA htetded To PayNo CoruDittee" WhichWssToldThatThScbldetrs Ir To MoreTban$8.50Pc! Sbar Th. PublicAtd WhichAcquiescd To Plan. Special Collmi[ec tr WasNot Asked Ard Io TheScla
Affrmativcly Proving C. Quizno's Failed PlpsDt Co4etenl Evideocc To Atry "Frir Valus"As Of Ihcember , 200r. h$bad, Quiao's 2l Qutap's Thre ConcaDtratd ParsilgTheOpi!io!6 AEivedAt By RespoldeDB' O! s' Experts' Idpede Experts.Ai thehd Of TheDayRespode "Fairvalue"..........'o ofQuizno's Appraisals TheMod ConpeE Evidedcc Ale l.
2-

'Fah Value' As Of Provitrg QuizDo's Quizllo'tDid Not OfferEvid,eDce
De4etnbet 2001.... 21, of Tbe Form OfRespondeDB' Addld To The S\rb8tanc That EvidoDcs,

"Fair The Evidenc, StonglySuppons Conclulio!Thrt Quiztlo's value' was At l*a!t $4641 ard, MoleLikely' $63'81or Grertr" "

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ExFlts Based RespordanB' At Trial Quizoo'E WiuleBss Critiqued UponTtlr sane B{ploifaaio! Quiaot Merni8le$sMa*et hic As Of DudnS2001 Had TuckerArthonyAd Qrizno'slJryrcprty Exploitcd ToJusti&Th.$8.50"MergerPrice'.........,...,.,.................."......"...45

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To D. This Is A Cas "BadFaith"Justi&ing Of Thir Coutt A$,ardOf F.es . ,, ,................. .47 Responde!1ts...

coNclustoN ........

50 ..........................

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TABLEOF AUTIIORIIIES Cases b6 Betbranv. Rust 1978) .'.......'.. 44 787 Greeting Cold,t, tzc.,4tl F.Supp. (S.D,N.Y. af'd Ch. Cede Co. v. Technicolor, Inc.,1990WL 161084 *7 (D1. 1990\, at & 25 (Del. pan,rev'd portor other 1993)........................6, in in Wu48,634A.21345

Ea-r, Temessee Tmwortation corp. v. Keton, l99l Tcntr.App.I,Exs 167, * 1 5C l e n n .p p .1 9 9 1 ) . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . ...... . . . . . .. . 5 0 A 43 Ftnancial, 2m3DI.Ch,I"B)OS r15.......,.................. 21, Centile SingLPoirll I hc., ..,. (Del. lryl)....-.-..'...' .....,,...25 t). AnuwPub, Inc,,70lA.2d357 Gonsabes StmBht .. . . .' ?fp.2r........................,'..... v. t,c., 80 Hogle Zinztics Medicar, 63P.3d (Utah, 43 roseph shalt Co.,4n A2d335(Dfrl. 1984)..........,...................'........... v. Oil. Ch. . . . 43 In 1999)......,.................... M.P.M. A.:2d (Del. 190 Enterpdses,. v. Gilbefl,l3l Nealv.AlabanaByProduas,1990 r0t43 at *7 (Del.Cb. 1990), WL dd ...........'........6 . A 2 ( 5 8 8 . 2 d 5 5 D e ls u p pl.9 l ) . . . . . . . . . . . . . . . . . . . . .'.'. A.2d (Del. 199)......................... .... ....6 ch. Oati, v. Integratur*,75f Ine. 904 .... Pinsorr. Can@!-TdgEen, rrc., 1989 Ch.LEXIS *20....................... ... 43 Del 50, at v. WL Ross Proco Mowgen nt., tc,, Del.Ch. 1983 t7991 +5-6 0983)............ .... 26 (4'i . Sandberg Virginia v. Ba*.tharcs, 891F.2d1112 Cir. 1989).................. .... 43 ht, 49 Irc. N.E.2d (lll. SP,IS, v. Canartan-Wolsh,6ll 984 App.1994)................'.'........."' 44 wten v. Polkltian rol ntdasfii.t,Ltc.,1984 C'h. Con Del, LEXIS550,r'5-7...'............. Stabrle,s C.R.S.2003$?-113-101,etseq.................. Colo. Rev. Stat. rr3-392(2xa)......,. 07 Colo. Rev. Stat. S7-113-392(2)0)....,... OtlEr Authofitics 12Wtlliao M. n*)let, Fletch.rCyclopedh Prird. Coryoraliont, of ....................,18 95906.160................ Calio,Josph, oJ New,ippraisals OU Prouem: Rdlecli s ontheDel0usre Appru*al Prcceeding,32 Am.Bw.L.J. 4849............,.......,..............................6 l, .............."...pa$sim ......................'.........49 49 .................'..........',.'

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R6sponde Wilias S. Fagm("Fagatr"), ! A. CarolA. Almstrolg, Jaries Dvorak ("Dvorak"), Fagarcapital,lnc., trura Appleby llwsoD (collcctively, the ard Fagao ADdreas "Fagatr Gmup"),through thiruMersigned couscl, respecfiily $bmit thisPost-Trial Brief/Statennr Posidoo. Of POSITION SUMMARY TIIE SAGAN OF CROUP'S thc Ile ovemhclming evidcDce thi,s cstablisbes folloving conin c.se bodyof probative cernhgfte two cental i$sues befuIe Court. this Finl, 0F eviderK esbblishes asof Decnber 2m1, lhc persbalgfair v4lueof tbal, 21, v/as wben cxtravagaot of Quizro's"leveragcd costs at the Quizno's $35.?6 I mitrimuL $46.41 buy-outfinucitrg" schemc app.opriaiely rnd arc c)ahidd ftqn coDsideratioq $63.8twhenon irto profrl8blc whichbadocrurrcdrdtoke3 conslder4tiotlhigruy a chatge Qolzno'r i! operatioos bcfoteDecemdid Iory Dr',nbet21,2@1. Tlh charge whichQuizno's notpubliclydirclose ber2l, 2001- wasQuizro'srcinarhblegrotrthof storesale6 storeopedngs dudtrg2001.' ard ftoln Marcb31,2001 Quizlo's Noyctr$cr5,2001prorystrLme aolrailcdprojectiols, goingforward,sihichMr. Hofrlan rld Mr. Cordes in ad largclyaccepred &rtviDg thir$36.76 values, a of and $46,41 respecti\aly. assuod number storcsal6s But,Qrizoo'sprory statcment opefiEs msErialy .m,ll9r thadtbesaleo opeoings alrcady bcforetle Decmacrorrplisbed ard itr ber21, 2001merger.Onoglrriry example:8s Septerder of 30,2001Quizro'8 ftct bad2,,140

' SulDtrlaries (Extibih Y-11sDd ofiercdby rerDoDdeos by Z-11),fully substmiiaEd docunhbcrs OfQuizlo'sp.c-Dceober mentrrj'evidelcereceivd trial. $ablilhtheralized 21, ai qfulgh 20Olstoresales opoings nsver rnd natially erceedd FojectcdDumbcrs. the Quizno's basdislnlted $6ftgures.

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opened sold,almosa sanenumber it Fojected stores or Sptcrnbcr, 2005, the as wouldbeopen p. four yeoE laEr (ft. 516/03, 84; ExhibitY-1, p. ?. Pu.thermore. analysls all of Quizno's between opedngs Sepatr of storesals store and tembcr,1995 SFember, ard verifidlred Iirc whichfumly 2001,establisbed a mathematicglly value,whencornestablished $63.81 the the valuerefernced abovc.Irodcally, even $63,81 pared Quiztro's to ac[&l 2001perfom|Dcc, tu.trsout !o betoolow, (&25m Tr., p. 26; Exiibits K-14.14 K-14.19).,., to Scold,thccvidnc lbrt, its establishes throughout hisFry asa publiccomptn], of Qui4ot floutedits liducisryobligadols.Quizlo'sartedh theiDterest themajoritysiockOfAc!'.Id holde.s principals, and Rtchard Schadeo, E. Prside andChiefExcutivc Qgizno's atr Scha&tr's family, lot itr theiqictestofthe publicsbctioldcrs. !r thisrespca, holdinaF and 21, anout of the "work" udertaf,etr IheScbadcls betweo Dccc!$er, 1998 Dcmbcl by a 2001,osteDsibly thch whileperforniry a! Quiano's chiefofficers, comsrDed dcvising planfor

' Cerlaiu $ rrial tra$elipt! alp i! &draffforn thatcottairutwo sets page of numbts; of pagc.umbelsat theboftom each of draftpage pagc ad lumbrsin thedocxss tert. For Orose trdnscdpbin $hich theEaretwo differedsets i! tbc ofpsgeoutr|bers, citatioDs thisdocumed poge areto dle lumberingwithlndlebrt. J Quiztro's value8sof December 2m1 is even tmc grafr wheoorc cotrsiders 21, Quizno's Irc. succsdsfut development its c.sb gEraring of AnelicanFoodDistributors, naoEd sub6idiary ("AFD"). Quizuo'rplsrudAfD asa substitue thelicel8ingsystem hadh place it before for itr 2001. During2001Quizno's projecrd by 20g2AFD wouldbegrnortiry S15,000,000 thrt carll Quiano's plals fot AFD wrreprrtialy irDleNnonnd excess &rirg 2001 natued fld but flowcrd duritrg2002whcnAID in factgcorated 8s f20,000,m0h crcsrcarh,all available
Dtofit.

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Oeirprivate"take-over" thisclqaly of utrrcly valuable.'

which,duringits publicircarMtion,hadgrowltex-

ad, Duringthese ttueyears, SchadeB the nillions of dollarsof Qrizm's lbtrds speDt gercrate.d thepublic'sinveshent(ti Schadeos noDe tlDir own therefore, of speff rnoney by money), retrrilling h iqvestnent ior bads, fma$ial co$ultadsard lrwye$ !o develop tbeSchadels' bcnelir takover the 2001.r TheculmiEtionof the ultimrely efrectuated Decmber, in planwastlle Fall, 2000"teder offer" ard tie Dceobcr 2001"squeze-out", schrdens' 21, the "merger' ituoa conpanywhollyowrcdby tlle Schados. To bsure,rcspordenls tbiscas rot advalrc "breach fiduci.ry duty" or of in do a "ftaud" claimEssurh, But,thii Cort's urdsstandiDg howtheDecqnber21,2001 $8.50 of 'Ercrgerpdce' vas ardvedat will illuri'rre why "fsir va.lue" position trial" at $8.50 Qoizoo's prcmised this nergerprice,b vorthy of trocolsideration o[ whatever.Furtbrmore,evidenc provingQqiztto's/the pblic Schadens' corductthloughout 2001,in squce*Ucut Quizno's stocldolders, zupporu conchsio!thn Quizoo's the ard acied arbifrarily,vexatiously notin good aThe "Schadeos' refelred st rlal ss "Judor") to refe6 to Richrd E. Schr&tr(sometimE ard his fathrRichard Schaden. F. of Bo& of theSctadeB verc Dembers Quizlo's Boardad, 8i all relevanr timer,owd naterialy nore than50%of Qutzlo'sstock. 5'fhe Sbhrdns launcbd 6rst fonnal"taf,e-over' i[ 198. Tne ltreh sc,bEc Dcernbq, pursued scheme August,199. Du !g tlose ni! modbsthSchadeN SehadeDs this hirEd ultil invesfrentbad$ ard foaochl consultas to structure propo$al, Conmittee I, Spcial tbeir forned ro rc5Potd lb Schadns'1998t999proporal, irwestosttbankr8nd lo rciairodits o1),l! "conru.ltrnb'werpaidfor by attonBys.Theco6ts ttrese roneof thcosBwerc of Quizuo's; paidfor by dleScbadcB (61U03 Tr.,W.58-59; ). pursud rhSchrdets durSimilarly,thecoltsitrcutred thenany "trkc-over' activitis in by ing 2000and2001wertuqhd by Qgiap's, trotby rheSchadens. bchdrd rlle cr8t8iG ThiB cured by SpecirlComnittcc Exbibit,1 refnncs tr. 2001co$r, ideolificd 'deftrd tender rr co$ts"aodtotaling$888,559.83, irEluding $1,000,000's iqrrd in sEurl nooDot th operatignal payrnefis iutersa made srvic lrvilc Lelchttrutr Anrrsco lver,'ged ad to tbe Wout frDancing,

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faith withinths meadng tbColorado Dissenrrs' RightsAct, $7-ll3-l0l, et Jeq.,C.R.S. of 2003(the Act"). ARGTJMENT tesAll have offercda orou aitrof eviderrcc, of thelact witnes$s Theparties thiscase o the tified at length w.ccross-xaeincd lelgtb. As this Counhasobservd, parties'rcand at cot{aired,in tbqopposiDg spectivc experucritiqued referecd.ald evlry nusnc everymattcr cxhibits,is co!8idilg of multi-pagc expeis' testimony.Thedocutreltlry ovidtre, gonerally rich in derril ard codrplcxig, matters which corcgroing valuation Basd thi$rccord,ald wift thecxceptiotr cartaitr on of (EDtirely compatible with Messrs. aDd diffend approactr Coldes llofrrrtr adopted sotrrewhat a Grolp subscribes thepro' !o oneanothsr involviDg but of tbc clrcices diflerglrtveriables), Fsgatr posed te& to FiDdings FactAtrdCorclusions Irw ard tlE answqs this Coun'squestions Of Of priiciprlly for purposes addre$iry of dered thcFagracroup's cqresponden$. by However, Mess$.Cordcs'andHoffrratr'sdifredtrg apFoach. Fagan the Crouph.6 treparcdad is mnproposld terDoncors$ filing additioml Findir8sOf Fst Ard CosllrlioDsOf liv, sulpleproposed tbc by me ary to aDd, of with rspcct 8vqral thcconclwioDs law, in lieu of, atlos of to S4ldstore Stu*ielcroonr Groups. and Notwirbstadiq rheabovc, Fagan rbc Gtoupfca6 thatthcwry mss of itrfomationh dis case couldobscure bcrr in mind. TheFagan so[|p irrpoltlnt dlemes whici thiscout should Grouptlpreforedircusses thisPost-Trial tbe in BriegsraEmcd Posiuon orce foUowilspoiotsl Of (s) Quizno's ! veryvaluable p.ircipoly bcauoc its extaordinary of was company gtowlh, Thestaticmrrkd pdccof Qui@o's to stock lever ctne elosc reflecting "frir value"ofthe corpany; thc

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to the Shadcns' 20Olr|ke-private activitywasmt intended establish O) Quiznoh/tlE "fah valuc"of thscotnpany. in Thcker Antlony wasassigrcd taskof assi$ting dF "squeez-out' thepublicstockholders. II a of Conmiite madctroeffort io Special couindependeody apprais coE0any.TheNoved$er 2001proxy statement 5, the taimdhalf-trud|6 omfusions; ard (c) Quizno's pF.eDtation trial largelyavoided meritsof0ris dispute.Quiztrokdid ti|e did b{$imrr valustion l,s! Mr. call a qualifid specialist, PstreD, Patten not apprrire Qrizno's. Quizno's callcdDavidProhrpek, Prokupektjob had also but ro been 'sqoeeze lhepublicstoc} older8, to set"fair vNlue". At tlial, o{rt' lot 'fair value"asmucha80ocb&llenge relpotrdeDtt' did to Quizno's trotseet( prove gxperh'opi onr wercbased indpendent uponattextraordithre expe.ts.Thoss pritrcivaluation lasearch ontbeal'plication biusiness ot nag ar$oultof facgral atd plet specificaly by odorsed a sries ofjudicial rullngs. of issu6below. Wediscu$each thse was, A6 Of DecDbcr 2O0l,A HigblyValurblccoopany 2l, Quiztro's Whe[ Valued Orthodox By hNiness Evetr ValurtiooMefiodologies, More Valuable Whtr Gro$'lh ConsidentioD PaidTo TheAaceleratrd Is gad In FactRcalired Before DeceEbef 2001,tud 21, Quizno's E:xtraordinsrlly VduablcWbstr Pr+December 2001PlarE 21, Quizoo's To Gercrare HugePmfitsFromAFD AodTo Furd A Natiotral Advertisinq fue Carnpaigo Co$idered. I. EveaWtcu OneAcc@tg OwtrProjectiotrs, Adjustd In Quizoo's valuation, Two Respcts Requked hi[ciplcs Of Busi!s5 By "Fair Velue' As Of December 2001h $46.41. ouir-no'6 21(a) M(. Cordes' Calclladon Ouizno's $46.41 Faii Value. Of In Jaluary,2m3 theFsgan Group rctained Cordca examinc to Et Quizro'secommictut! 21, danpntlh md to reder an opidonconcemi4Qui.no'shir value of DereEber 2001. as Prior to bis engagenent Cordes m klowledge had this aboot care. Coldrshadnokrcwledgcof, or relationship to with, theFagslGroup thcFaga!Group's or asotueys.Cordcivas ln3mrfied pcrformhis owl valuation at rc tiDeduriBg subsequent discuss did ard, his rngrgcmeDt, Cordcs goup6,or Mes$s.Hoftla! or fie carewiih rcpre3entitivs th SatdEioDe Sffkie./Crooms of o( Cowhey, expertjetrgaged thos dre by regpordetb. Cordes brought partbulady two hl|portsdcredqdals!o fre task:

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-(a) Cordes anertraordinatily valuatiotr expert. Amotrg busitrss acEomplhhd is othctthingshchasbe!&e chei$\au theExqrtiYs Mvisory Bostdof the ef icguladyteaches Aralystr. cordes ofcertifid Valuation Nstional Associatiotr priDcipl$; valuation ard lecurrqs bBinss on -O) Cordes' banlsandcordes codinresto on career origiDalyfocused advishg !n (spplo mately rcciverships). the 60 petformcxtensive wort asa rceiver to, wids up asansdvisor or adju[ctof, th latlercapscity, Codeseffectivcly professiomlly aligned Cordes nadf$tly ttot a persoa Coqt; notanadvocate. is fiis figulcs(although hasnor plaintiffsvho sek create with to ficirtious datnagc prevented expens ftom soinsbualilg). Quizro's urbia$ed apploach this asto reputation I straigbfforward, and Cordes brought outstalding an imparbasis upoa*hicb !o iryach Cordes' sigDrlent,Indeed, has Quizxro's fourd rc objctive "pie-i!-tbesky' (Exhibit (aodHoftuusk) approach tiatity. Inrtead, I\ik. Liptonlabels Cordes' "'realitybased' valuatioD (!d l4l, p. 1); Mr. Prohpck spuru Cordes HoffuEs)ior notl|sing nelhods' (Exbibit142.p, 2). In fact,Co.ds with anappoach whichfavorcd Quizao's started Quiroo'sby accapting fie owl projecdoDs whichobviously to werslanted downplay briShttutureof tlE compaoy by cordcsvaluated Then,like t{ofrnan, whoalsoaccEedQuiz[o'sprojatioDt, Quizno's using wimess$have Cordes prcisely did whlt Quizlo's severEl iheDCF mcthodology.o Thercafter, qnrstbc dorc, i.e,, betstd DCFcotrclusion applyhganotlermcthodolo$/. in6isied bis by "marCondes' DCFmethodology anivedn a valucof $i16.41 lbare(ExhibitK-14.1);Cordes' a of kct approach" melhodology, usingguidelircconpaties,arlivdat a value $47'34(ExbibitK6DcF ts tbevalustion procedilgJ.Joseph apprrissl uethodology choica Dclaeiate of h cAlio, New Appraisars OtdMtens: Relcctions theDelowrc Approw hoceedtng,32 of 109243 t7 (Del. at Am,Bus.L.J.1,4849i see,e,g,,NealI Aloh@n By-Pro.lucts,l99OwL (DCFis considered cxpens be thcpreby !o 588A.2d 255(Del. Supp.1991) Ch. f990), 4tr2 at WL Inc., 1990 161084 *7 (Del. emiDmt methodologr)i valuation Ced.&.co. v. Techricolar, (DCFis 'in e. f$qc,, dd in pqn, nv'd in W on othergroandt,634 A.x 345AeL 193) theorythesiDgle techoique c6limatr valu as cconomic b$t asset');O4rl LE. v. Integm thc of to (Del. Ch. 199) CthisCounfavors discourtd flow approach, Bar*,751 A.2n W,925 lhc cash basd largeparton its widc acreFance"). iD

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14.10), Bo0tfigurs aresn accurate 8od oeasure the"fair vslue"of Quizno's urdoub.bdly of prilrtely imprtedto Quizno's of Deas reflecta valuefa! les8thar thevalucwhichttr Scbadens cmber 2m1.7 21. (b) Ttc Two AdjusbpntsTo Quiao's ProjectioDs Re{uiEdBy Busitrcss Valuatiotr hipciples. the Codes' $46.41 6gureexcceds $36.t6iuu'e at $tich Hoftuen arrivcd,sTleF.!e tborougb two conpellitrgreasons thisCoun,witlout rejectirganypottiooot HofEnan's why strse rs irportatdy, a!d, analysis, shd{d adopi fi5.41 frfnrg.' Bothrearoos the oakecomsoD reflectadjustneDts Quizoo'rprojectioDs to buri[crs valuation melhodolo$/. requircd otthodox by Boih adjustn r arerequ ed itr ordgrto aniveatQuiao's valura8a "goilg corcern"

t Thor8bout bis testiEony, Richard Schrden E. t$tified thd his opinlonfabout Qliano's valuex/retlre same theopitioN of Tucker Sshade[ a luge pelsolal had as Adony. Of course, lcw intelestin restrctirg his opitri@s about valucto Tucker boly's opiniotrs.Bui, Schaden A was vastlynor. sboir Quizoo's did Tucker tlut Adony aodobviouly belbvd Quizoo's lbar the vastlymorcvaluable e priccte i!8d eflcta "squezsqrt'vrhich pubficstoclloldrs ttan i0 couldnot dcfcat. wiosereal Thc Schadenr noteqage in tbrcycars frn to rak! ovl a coEpatry did of aE pricc- Tte Schadfls vig$edQuizao'8 bav' valuewar ref,ected its stat'lc ncssatily by Dartea bormwd almolt iig I valueruch grcstsrtbanlhgpaltry$8.50, Aftera!, thcSchadeN to ai $20,000,000 whattheyhave r.guedatc veryhi8hifiercstrates buya poltionof this c.omprny. 'In f.ct lhe $9.50difrcrelc! btween of frgucs fua dispqrity ody llolhun's ard Cordes' !t err to applytbh Sitgof DcrcErslge ltp l.!al of yaluefrgues rbort ,ftbicb 2G25% lf o* . to basspoke!,it wouldrEsuft a rrdgcof $8.50to S10,60, in Quiano'r 'Itoffman himself his lhat nads it clearduriq bis tcatitrony behadapproachrd asignmcat vdue. lIoftraD never by adopting mostconservative the iD assurytioDs affivingai his $36,76 statd Cord6' approoci, thrt difrererttlu! his, w8sis aoywaywrong,rct did Cordes although 60crithuc Hoftlan (aDd, Intercstingly, mt eitherexpttabout Qoi@'s chose to cro0s+nmiDe theoth.r). Such Biticismbctwcs!Cordes liofruao wouldhavcbcctriqpossible eithtof for ald thes io do i! light of thcfactftar theybothsrchorEd valustiosto fte salrebasic theit p.irciples.

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but vahationprincipl8, also by Thefrrst of dlese adjusbr{sis not ontyrequired busiD$s that"fah value",ot ilclude arry is rquird the Act lbelf, TbAct, 97-113-101(4) tequircs by "depEiatiot! iDsiticipationof lhecorponte proDosd. is beyond dislt actiotr"whichhasben putcthattlle tizeable ual inbrstobliSations in a iDcuned Quizoo'6 bonowiogfrom Irvhe by in purposs, fuld the "take-over", resulted "deprelrichhnan andAmrsca non-operatioDal for to thar explained be, .10 eiationin ar$cilstior' of Outr.ry *iake-orer" For thisrasoa, Cordes the of as Weotbackto thetorderofier to nake my analycis tle compatry though telder ald related squeeze-our notoccurred. hrd put (8125103Tt,,4142\.Comrnou this rld sense faifl*ss alsorequire adjustnenr.As Cordes it, out, of Had[Quizno'rldotpurclasd ifiersts theoutiidestocl'holder w the neve!srqrldhave a rc!6onfor thisdebt. had [Qqiz!o's] (Ord). Quizno's, "goitrgcorcertr"to bcvaftEd,is 6ubst nddly morevalurblthatr the Quizno's, arc thecompsny burdened debtDotEclssaryto teepit "goirg". Quiznot plblic stocl{nlders by emitled e vslustion thr fotner conp&y, nota vrluatior of thelatterconparry.rl of to of but challengd Cordes' rnaking thisadlustment, it did not do soon grounds of Qaliztro's ,t8al opidioltthat priDciples. to vsluation lBted, QuizDo's offercdwhararFunted Mr. Pattcn's that tlreI-Evine expqbes mt encompassddE Act's rcquilengtrt off excludc by Lichtmm ar

r0T1le prcrisioD th3 Act rnayb ilhsfated tt consi&ringtFw to of of sensa this definitioDrl purchast. valucI buildiogs,hichha6 by ben substrndally dan&ged a fu serby theputative set Cl8tlythebuildi4 mat bc lvatuted et it exisbdb$orc, rd $tcr, tb P,trchaser thefire. i the to As applM to lhis cas: publicstockioldrrs etrtitlcd thcit proDorti@ate elestin at wilh burdeBdQuiztro's coib andcxlrnEes ar Quizno's it cxisted d"re, mt after,tbcSchrdeos trcurredfor $e solepurpoce ll0atr'ilg theScha&!s'le\terlgldbuyout. of rl Ilofllnan agrcd was with Cordcs Ure rhat lJvhe lrichinas hanstction trotr EaDsactioD (8sdid Cotdcr),ttal the in thc ordimry co|rseof busiGss.IDthi! rrspc1, Hofrmrnde{ernhrd 'cost" of thelrvirE llicneatr fimncitrgcouldnotproperly insh{&din calculating "disthc be countrate' to bc used applyitrg DCFoetlodologyto Quizp's, in tbe

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"depreciation adicipation thcorporate of in action"ftom a detemination "fair v{lue". Mr. of p. Patto himselfackoowldgd poilrt(Tr. IUU 103, 55)rhis rhe Pattcn not, andis tot, qutlifiedto offerlegalopinioDs about ne.ning was Of course, its closd had evenPattm!o doubtwoulda$ce lhat,if Quizno's form,Nlly of le Act, Moreover, rW fDmcitr$ fton lvine trichman ald Amresco, ireekWre tE in "take-ovcr" $20,000,000 itr wouldbave rcsultcd degeciacosts obviously Decnber 2001t!rger, these 21, eruaordinary of lvolrldbexcludcd.As r mattfl of logic, tion "ir anticipation the' nc4er atd !cssarily loatrs closed to upondE6e thereis no reraron approach issue differendy any becaus tt Quizno's and the wcre"anticipating" me.ger exearlierin tinc (albeirat a timc wbentheSchadso! already costs froB 3! appraisal pticitly plalBingto eff@trlte it). ThEaFploDrlrtenc$ excludiBg thse of of of Quiao's 'fah valuc' asa goingconccrn, uunoupona! uderstanding thefutrtio! 8ndPur' to irculrEd. pose tbecosa,,|ot upotrthctioe(s)whenfip costs bapFD hlve been of by reqtfued boft cornmo! pmjcctiolsalso$fas Cordcs'scoldadjustroeff Quizno's to pdsiplec, QDino'spmxy srrrenertpro,icctioD3 ilcolpordld $19mi'llioain selaeard llaluation SAR(stoctapprci.tion righte)$dempdons osiblyto bcDadein 2005. 8ut, a fildaqledal ost by prflisof theltrconcapproaclr valuation to estrbllsb exDenses inc'utrrd a conpsoyitt is tt io mver in' should a "nonml opratitrlgyat" (8//5/03Tr.,4l; cnpbasi!sudisd). An eppraiscr plrase", is "unusual nahle and in corporate xDelditure an which,to useanappnbing"catch (rrid.). Acsrningthatit werto occur,theprojchd$19,000,000 infte4ucnt occurrem" in SARrcdenptionio 2005wouldbboth"u$rsualin mblte" srd 'inneque itr occutrence". from a busiin of Quizro'sredemptiotr all SAR'S anyone]car alsowouldE{ke oosense fo! ness statrdpoi[t.Theledemptior limiratcperfomar iDc.otives wouldsimultaoEously

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many.if not all, of Quiz0o's wouldurdercut rights-holders. ro doing,tberedemption By origiml ratiooalc adoptilgtbpSARproglam.t' for Quizno's i! Theconeclness Cords' of DCFvaluatio!,basd partuponhis makirythetwo $46.41 projections of adjustnnts Quizno's by applicatiotr drc to abov.,is viDdlcabd Cords' discussed "guideline hundreds ma*et approach methodology. cordesad his staffperformed companies' "guidelineo for of hours wolk rcsarching publiccompanies companis whichwerepossible of process, exaniDadotl all possible ol whichitrvolved close Quizno's,This wasa paiDstaking "comparables' elimimtiotr distinguish6rd of them{nysupcrficially sif,ilar, bst fuDtlarirntatly gompanies. 8ble,rcstauratrt a$ sub-utdverses,it wqe, of Cordes uftioatslydetcrmilcd lbclelrere two separalc that guidlirpcompanios: growthcoEparis (a) (ExbibitK-14.5,14.8,14.9and14.10); appropriate of ard O) ftanchisc c-o4ad6 (Exhibit14.4,14.6,14.4. Basd atrexamlnation therclev.trt or cconomic detrics, ard thcratiosofrnehics,ofthes relectldguittclbecompaDis, carefidly Cordes l[at at concluded 6e "ma*ct approagh' rEsulEd yaluhgQuizno's $47.34, tn Thqs,anyof QuizDo's critiqisEs Cords laving ttBdertletwo adjusgleitsiDcorpG of for of rared his DCFapproach into above, rendrndtroot by theapplicadol two scpadiscussed arc

D propqdnorthefirst timc h sumler, 2000 to been Qrimo'! SARFogramap!ar0 have asanaltrnative to Quizno's prograe. Ever bcforcthattlme,Quizoo's/Schadens stock opfroo ptogram hrd decidd to privstizeQuizDo's thEy Ntrd wereawuptbat,itr tbatcvcll, a 6toct optioD a3 wouldm lotrgerFovide ince ivecfor Qrdzm's AccodinSly,valuilg Qqizno's s employc8. "goingcoocem',rct asa co@rny wltose lo accomaltqd ecomnlcshuc&tew0smaterlally which modate Shade$' privatizatior plas,callsfor climinstilgrll projected SARexplses ttrc . hadben irEured on tbcr$uDptiotrthstQuizro'strololger wouldbc . "goingconcem"

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ratcard frlesxlDdingvaluatiotr diffErent hcts anddifferentaseach methodologis, involviDg sumptions,lr whichproducldody a 27, disp[ity in rcsult: (DCF)apptoach; pu$uant lheincome $46.41, to pulsuafito thenarketGuidelircconpary)approach. $47.34,

haviq adved at Yirtually sirDply qo wayto refutetheiDportance Cordes has of Quizao's that ideniical results whetr used he lieftodologies.Quizlo'3hastpt suggested narkdlyditrerctrt prilcblcs andmaihrmatical Cordes somehow nariprlatedall of thehchal research, valuation to thar calaulatio8incorporetdintothe6 separite valuadon approachts ensure $e aDtwo "fair vrlue" fi8urc. T! alternative, cortcct,exproacbcs and wouldarivc rt altrpstthc same plarationfor thc similaritybt'reo 'fair value"arrivd by bothapFoach6is that,asof tle rt compsrty whichrheSchadcns DecEhet 2001,Quizno's irdedthehbulo$ly valuablc 21, was stoutio takeoverthreyqrs earlier. 2. Growo As of March,2001,Prttiq.thly Whetr Qniuta'sPrcjected srreamg Considercd Together WithQuizDo's hedictable Revctrtle Mr. Ard Quiz[o'sMaDrgeably Dt|t,Fblly Srppolt$ Cordes' Irw Fair value. Quizno's nrar&edGrowlh,AndQuizoo's $46.41 Properly Calculated Beforc Grcwtl Dcs er21,2001,R y suDDorts Cordes' S63-81 VelueFair (a) Quizro'sProjccted Fully Supports cordrt' Mr. Growor Opinion ValuipgOrizm's At $46.41 ShaE. Por "growth'. Therepetitiotr, whitre trial, thir Counrpertrdly D,uling head aDout Qui2no's perhaps tir$olE, wasfully justificdbecaure factsof Quiao's growthatsocriticalto lixiog the B Co!d6' valuation approacher not e irsly exclurive onE are of amttcr. This is b@au$c uponmultiphs Cords brsedhis cdculation thE"crit muldplc"usd bis DCFcalculatioo io of evidcrrd dE guidelin Ttis partiqdar by conpanies Codesstected his rulket approach, for bdeed,should exFctdin rclationship between rworDdrodologies surprisiq and, be tle is Dot light of thofrct thalbothof Cord6' approarhes to Drcessarily rcquired focusuponQgizrF s $icrc gowth. mostsalienr ecoEorDic cha.actlistic it8cxtrrordtnary

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0le "fair value"of thecompany, trial, rgspotdcrts summarized At Quizto'$extraodinary "growth" storyon ExhibitrV(9X1)aid V(9X2).r4ExhibhV(gXl) show6 overall Quizno's growfhby measuring growthof ya.iorseconomics through yets. fhe netricsof Quizno's thg Amongttrcmorecompellhuof lhesc fi$res arelhc followitrg: Fcbruary, 19q4 (Quiziro's PubIc) Bcconcs
Restaurart Unitsln Cporation Amualized Systc[lwtdeSales A'nuali'ed EBITDA 40 $14,200,000 $100,000

December,2001
(Schade8 Tak! Quizno's hivat)

1,400 $42E,000,000 $12,200,000

2l,2Ml, a ln accordance thcse with sigoificant was,asof De-cembet economic metlics,Quizno's corqary at leastrrirt) thn4l largerttut,Qai/,,I0'r ben 1994, Tbatgrowthratei8 remrrkh had ableby aaymesure.t5 growththougbtbeyear,*,ar bothquantitive qualitaiivc.A conpanywith a ard Quizno's rctwork of 1,400stors vssdydmerent Nco4aoy wittr40 urits, WhilegIowlhobvioust rhan is preseds owtrchllelges, gmwthhasnany bcoefits: growthgivesrfueb economies scale in its of

raWith orc exception, recetved the,se are otr suonarie,s baseientirely datastdedon exhibits in evidelc. thesexliblts priocipally docwEnBprparcd Qtzno's itself,includitg by are Fofm IGK'8 .rd Fom lGQ's. Theonlyligureo! ExhibitV(9Xf) wbichis not stated Quizno's on I Frblic lilitrg, or sla&din Quizlo'sintcrnal firnncialstrtrrEnt8,is thcfigurefo! Quizno's February, two 1994system-widc by salc, arDuali?d. figurFw{s derived rDultiplyirry a! That hown fapG reEo{ted ExhibtrV(gXt), tr t5 growthrae is mt a frct of oolyacadeeic r6t. To tlF contrary, i busitcss QuizDo's valuatiolprirEblesrcquirothararalyst!closcly growrh a[d irrotporat! examilc4 coEpany'E ratefut factorintotheirrppraisat.Thfuh prcisly did whatCords her. Cordes' Eartct approach iDcoDe focusd, lequired, as upotr"grorvth"conpanies.Corde,s' epFoach moreconssvadve, was upoon[tipler eviderivitrg exttbmital multipla a[ bascd deDcrd frarchis by compades, univcrs guidcline a of evidering lessgrowthtbtn comprnies "growth"companies. the

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growth purchasiog gmwthhcilirates tuding of Nmbitiou$ cimpaigns, supplis, advenisinS fic ednncasnattrc rccoglitio!, Ac. Theinportance Srowth notloston RlclurdE. Schaden, June, In 2000,Mr. Sc[aof w8s ald invssdenresporded irquiriessbout to made Mes$s.Fagstr Dvorak,Quizno's by QuizDo's lhpir eDtln$iasE tbecompaay.i6 torswhohadcxpressed Sch8deo to Quizro'sBoard to atrd for plan Schadetr erplaiffd thatQuizno's then business wasgmwlh,gros'tbaadmorSrowthi as Rightlow tleir philosophy G&A is to "dowhatwehal,e,o do to keep oo Srowing f(rstss we catf , (ExhibitGl3, enphasis supplied).Schadea ryhasizcd Quizro'splamedio grow also thai ta if eamirgt: EricyJy 2,M u4its,eveo, ihisratof go$'th dininished we are not goine beeomingt or to uattl focased ve g9t6 m0 stoles so- Werced !o getto r sizewhere canbeoorc efricier!with etedronic wc oedi8, andgettbeleasfast pockea aswecan. Alsothetarccompctitors deep whowouldlike bodo whatwc with te doi\g, so rl)clune to growosfag ospotsibleto supeftedc thsn, 16 Between 1999 20Ol Fag!trard Dlorlk, md otlDrrncdels of theFagmGrrDp,pttrand , Grcupwerciotcrslockatldshdiedtbeconpatry its pr(xpecB.TheFagan chased atd Quiao's irvcsrors ested whotly shaEd scnadcNt Quizro'sBoad. Thus.it rheirwort-Fo&rstwith atd $ra8 surprising Quizno's thnt chos athcktbcFagan at to Group trial, 'to (6/4/03Tr. , For exampla, suggsted tbeFagrncroup brd sonethitrg hftl,e" rhrt Quiztro's "arbitiage$",inptyitrgtbrt so!|ehol., Fagar latercalcd fre Fagsn 6). Quizro's cmup lbe (6/16/03 185-186). These sEcusatiotls Groopwasworkirg rgainstftc iDtqestE Quizoo's Tr., of "fr'I value". wercgranriious, certaidyhaving rclvancc e8tablishttrg m to Qrizoo's tlut also that Quizoo's argud, aca pre-biatthtrle, theFrgaoGrqrp ihelf hadagred $8.50 Eprsertrdtb "fai vahe" oftbc compary.Quizno's rprsented its Trial Bricf, pp- G?, tlnt in it wouldproveth!r, io Fall, 2ml rhcFagatr to Group eDdoNdpricsclose $8.50. Quizro's a had (5/5103 21-22). prornised its Opening ir SbbDnrthatit woutdoffere{ideMcto thisefteci Tr., But, theuEontrrdictcd evideiccat nial provd rhd, at tlp bcgiuilg of tbeFall, 2001 psrtlls, Mr. Fagan corntmdcatioos bctweeo th! iI! o|at ctDhaticalystNrcd hisnegotiatioor rc "fair value,,. purpoclc apprairal wayreflected Faga!Gorp's viewof Quizno's thc righfs" for of (Exhibit82). TheFagan C.oup'sbidsdting Fall, 2001,hrd ss lifile to do with reflegiry "fat value",asdid tbeScrhadrs' ie Fall, 2001"mrgrrpfc&' whichtheycoercively Qoizto's tic Dublie uFo!. stocKrolders. Dosed

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privalely!o hves(irA.; emphasis supDlicd). poirt iB$at scbaden hinself, wlcn speaking The to to$ or wher! a6he latcrdid i! Slrrlgret, 2000,seting idere$ peNons fimncehis talc-over to plan(pe$onrwhoi.&luded Fagan that the Group), fuly uder8tood gowth wasthekeyconpotiat nust tal@ considetatiqB irfo nentof Qlizno's valueard thatanypersolappraisirg Quizno's poirit.r' fundamental thc criticallactorsupportitrg Faccrainlyis thesingle most Quizrp'sphemfiFl8l growth "fair valuc",even of grn Group'spositiorthatQuizno's ptrtrisd anaccpifflce upo! \vhEa modeliF projctiors, $46,41 s minimun. Bul, Quiao'E busiocss at conservative was Quizlto's the corporates otlrerparriculay impo.tadr two economic factors whichsupport $46.41figule. FiHt, a{rd Mr. cordesexplaksin bisJanrary 2m3 rpon,Exbibitl-3A, Quizno's as 31, stolet, of of rathcrdm ia opcadotr compaoy-owied &vclopmedt r mtworkof frar,hile stores, redrcd risl$ id derlhg with iFvitable fte solidifid valueof Quizno's the a!d, concomitafily, (8i/25l03, p. 98).tr Conmo! !orcildlcates rDygcogrrphicrlly disthar bulirEsscycles Tr.,

r7At trial, Schadel iltemal quertioDd aceuracy Dvorak's coltenporaocously-Epared of fte quoting schaandsomeaines memolatrda, ilrcludirgDemora.da Efcrringto Schadctr's statef,ctts setting or dn. But, rFithrSchaden Quiz[o'sitselfproducd nots intqnal memoralda nor ant foflh tbcir vo$ionof wharSchadlrl discusBed Dvor8l rd Fagal Ttir failureto do so with had laisesquesriols corceming conpleEDpss vetrcityofrheit testiEony, tb. ard r3Mr, Cordes nadethefolloc,iDg ob6rvatiors lhislcrye,ct: in opcratiolvenur TbercareI o|rmbcr sdvadrges expaDrion thtoug[r ftarchiEe of to itrclude: rdvanbgc$ buildiry ad operatiry stores yorlrown. These oo - Rceivirg frarcDise up ftort iDstrad cash ftnds for thecostof a lcc ofcxpeDdilg thestorchdild-out.
Ayoidiog tbr tea!comditrer|t over severdyesr! wlethpr o! not tbe locatio! is good,

of Avoidfuding 0p strrtupcosb eady losss tic locario!. ard
(continted..)
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persd proftt incentiv thousatds of of which,i! additioqcrn rely on olc idependent business persorsl in ard moseparalp ftsnchisees, haviug meeningful each inveshned its bucincss, each a predictable Evctivated!o eamtjJ livelihood, vasdy has redu{d isk. In addirion, ia Quizno's nuestleam royalties uponfrtnchisees' oi paid gro$ salcs, a is tharr reveobviously morerellable paid nuestram upo! frarcbisees' profits. sr, fact is was secod, a[d another conomic enphasized Mr. Cordes, thatQ|rizno's selfby (8/25103 63,76, lA, 163:8127103 dcscribed Tr., succitrsdy Iinanciag Tr.,94,96). Mr. Cordcs "if's Emerkable w...have conprnyoutofdebt butparticulsrly orF as Oat r Quizno'$ follow$: thatcanBelf-fiEnce ,10 growth a perccot late' (8127103 Tr.,96)-

- Avoidtlking tln busirE$rilk associated operatioDs, e6ployees, /.e., cwtomwith e$, facility,etc. Avoidtakingon tbemalagenflt responsibility dayto dsyoperatiols, of Ad(litiorally,theftalphisoris expos.d mrcblssrisk in atrecorcBiqdowrtrrB, to poirr. bec.use theirlow brerk-vl of

J-34;p. 2). Gxnibir tbat At trial, Quizm'ssuggcsted, oDlyO|Ieugh qucstiors, throgh eviderce, a oot its but fraDchisitrg operatior by as couldbebudencd problerDs well asgiviogriseto benefits.In thi6 pointed therquhed rcspest, to conbined its UniformFraoitr cautioDary statemcfir Quizno's chise (Exhibits174,175,176ind 177). But,Quizlo's did ootcall atrywitOfferingStateEents ness lsdrythatftaDchittng tp operationwercdrkier ttatr rcFta[chise operations. fact, In rt owDconduct its bulircss- b contnstwith Quiaro'rrrguDeors of advrtrced trial to Quizoo's dovnplaytbevalue thecoq)sDy- elf.blished Quiztto's {,as klew thatfraDchisilg thD of thar mot9profit bb atrd hld morestable mu@,By FslL 2m1 Quizno's yiri|ally elimi!8tedit! compatry-owned stot6 hadcoEurretrtly, grtady,expardcd fraDchisiDg ard d|e oDerrdont, aDd platrwasto crfieandnrintsin r tetiable, and coftraclually-bascd largclevcure Quizoo's qperaiots.A stream g$up of 6ousadr of 9nrlcprcneurial ftom a diversifred saldwich-siop busiEsscoostituted atraisetof $rr typeh far morafflctlve to matry by iNeston thanis ! busirless equivalent iDgross thousands of size of rsvenucs, dpendeupoad|evagad.s opcrating but of itJ o\Nn reBtaurar$s.

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Th9point is thatanybusiness additioral equityiovestEent, rgqui.ed borow, or to see.t to for puposesof tulditrg ongoiog ofthc cipital maroperatiotr!, isps//orcr srbjectto thvagaries \ras kets, Qaimo't M notface thisNobl4nt. Quido's steryth it tbtsregard padcularlyimprssive view of tbefactthatQuizoo's confortably all in was self-fimtEing of ir8day-today busiDcss irte operatioDs its extsaordhary of growth,ro and arr(l growth with Ir sum:Quizno's sn extraordinary wa.s a compaoy, company reliable prdictable revcruc$rcaru, a compmy aod whichcoulditselffin !c-9its erpansion a corpaly 'whtchh8dminimized riskr, Few,if atry,of themtrly natioDal which nestauru* chains about its of facts. this Coult hasheard testimony boasl thisextraodinary of corDblnstiol economic can (b) Quizno's 21,2N1' ActualGrcwt RealkedBeforcDewnbet By WhichActuallyExceded Growth Thc Firmly Establisbcd Valuitrg Mr. Cord$' TrcndLire tualysis,Fully Suppotts Ouiarc'sAt $63,E1 Share. Per proved8t t ial that,before ResDordents December 2001,Qdzm'8 hsdh &d accom21, (whicl plishcdmaterially 5, nore gxowth projcted itr Novenbr 2001prory statemem than in projectiors peniafy bascd wereai least uponQuiao's M&sh 31, 2001finsruialstatemerlr).At trial Quizoo's trot(roorE tbepoint,Quizno's did t[rt couldnoodispute fact, Moreimporto 'as andy, Quizno'e never comemiryits ftir vahte of explained it canadvancc poition how a Dccmber 2001",withoutaccouding thse 21, fo! a subst^fiitloccelardian hcb dcEoDstsating of QuizDo's already growth imprssiv {boutrrhichQuizno's }!ew in eady2001 ard vhic,h ; -

rehdeed, pcmfted it ro rur its olgoiogopratio$,to capacity Quizro'r cash-gcnomtidg support exffaordiorry gt0l'',th, to paytb We troo-opratioDrl its cxponss whichOc Sclao\d dqns causd explorcd 1998 2001actheSohsdcr! alterMtive and Quizlo's to insurbctwccn meclEtrisr!8 cfecaut lteir "trke-over". to

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growlhwassustainable, prove[by Quiano'$ a! out.performarce i$ projections of spatacular thrcueh 2002(andlitely ftrcafrefalt[oughrle Faga!Group loi the dos have daa). value,at themostfiudamental of valuation lcvelandrcgadless wbichbusinss Quizno's mettpdology adoptd, prcnised ad is is upontherumbr soresQuizlo'shasopened the of number stores reveDue of stream!. has Those factsdetermire sizeof Quizno'8 flle Quizno's so1d. Tho6c factsdelesdrc thesizeof Quizno's eamings.Neithe! Coun,nor ally other,couldrrthii pubrivc at a "fair value' determhaliotr of Decembq 2001withoutens[ing $at Quizno's 21, as lic slockholders 21, recive rhelrpro,poniorate irtrcstitr Quizno's i, arineda! of Deccmbcr as 2001,not by lookingat Q\i?.!o'sosit lorme f qiJred(psrdculady givetr atmost mollhs nioe th of ac4eleletcd grorr,t[Quizro'sdid notaccount in its verydtailed projections). for prediclsble For furposes determininS ovrall,andlhereasonably irl of iocrcase, fte "f1ir gowth patlm,e.9.,cJ d Decetber3L 2001 value' reflected thisaccelelated by Quizno's th4nrheprdt ttatemct projecte4896tou v6uE 379prot Qubto's hodtod 517nori stores to netbodologies.Mr. Cordeg Jecte4rheFagarGrouparkld Mr, Cordes applyhisvahation did soby: (a)ac{spting of Quizno's all reverue/erpens ad rssct/liability ratios,asinntios clrdd by Qulrno'sitslfin its projccdoDs ftc prory st$crnp ; ad (b) applying same tbe DCF in melhodology hrd Cordes rppliedt0 QuizDo's based Quizno's otr Fojectedgowth, to acoE|rtrodatewhatQuizno's growthhadben, stabtished th achalrumberof siorcs soldatrdstoreg a! by operEd stanilg i! 1995,Thersult thir uncxcptiolable lhat mefhodoloE}/ establisled of (Exhibits value,asof Decnber 2001,was$63.81 shsrc 21, f-14.14 - rc14.19).ro Quizno's a

n Mr. Cordrscxplaitcdthalbe i! urcda staDdard nathcdsticdtoolftrqucndyused busines8 valuation, regrssion a aralysis, fonrulatetwofiendlirEs(K-14.14; K14.15). Mr. to Cods tbenincorporstd nmbersof soldatrdopened fie rtablished thetrendliDitrto by s!0res (continued, ..)

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At trial Quizno's objected d|eCounreceivirg elidenc!ddnonshating iIIDactol tbe to p.27-28). TheCout overnrM Quizno's adra, growthduring2001(Tr. A25103, obQuizno's jectiotr. Thererfier,ard not$ithstrnding facl $at a coDtiruation tlD trial fumished tlE of with two montl|s e(pl.h whythisCourtrBust lhis of to igDore acclerriiotr growth, Quizno's whichddvesa verysubstrntial 27, otr incrrse value, iD when trial rsurned Ociober 2003 critbismrofMr, Cordes did attempt rebutlhepoirt, None ofMr. Pattetr's to Quiztro's ootevetr faulted,mr couldth.y bavefaulted, based upotra for Cordes eldeavotitg!o appraise Quizmo'$ considcration Quiaro'sas it aised a8d D'.e.fl!f;r 2001. QuizDo's abut of 2l, acc'usations Cordes'"norealistic" workdo ml acc,outrt Cordes data baving examircd actrral corremthe for irg Quiano's Eold huildhg a sandard stores andstores for opened a sir yearFriod of time,atrd Fcod-line demonstntc strergth Quizno'r lo groMh. Nor catrQuizoo's about tb rc4Nations of proxystarennt FojectionsircludCordes obscure absu.dity Quizno's drc of November 2001 5, iry, d.ptljf'Jad dorwttar.l trcndi grosth. ln a very realeeme, and , Qrizno's,a8of Dacmbcr21, 2001 ess a Itry diffcrEtfi far aore profitable conpatry tlun QuizDo's a! ofMarch31, 2001. Quirno'sofrerd no cviwas dence, whelher lhat psckaged e"\pert whichurdrculs poiDt o! as or tstimony ar factrestinony, justifiesQuizno's advocacy old based tbeuseof stale, nirE-month figuFs. h ftct, all of alrc oD cilcumstSotial soorcr evidemrdemolstrating Schadets' the intfise desL privatize to Quiztro's aalbc! thanlater,$rolgly sqrpor$thattheSchadenr, palticular, kref,,howprofitablc "Dethg i! his Eodelof Quiao's operadoDs ftotrl cash KJ4.l6 - K-f4.18), Theprojec{ed flowsrcsulting this fastlliousxercls setforth onK-14. are 19. p. It i8 particularly telling0ut, asreftrerced abovc, l, Mr, Codes' carefuy researchcd, andoathematically verilisbleterd li!e, actudlyprojecred fewersbrsfor ycar+nd2001than prq. ,t/oct realizcd bofi of whhhlumbers,of aourre, *ay in excss Quiztro's .Ie of QuizDo's jectior|B,

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21, celDber 2001QuizDo's'was,srd hov profitable 'poet-December 2001Quizno't" 2l, the "March31 2001 to with figurci applioablc tlre ' Irould be - pafticularb$bED contrasbd linarEiat the to Quizno'!' used mirlead Frblic stockholdr$.?' 3, As In TheFinalhalysis TheFull 'Fair Value' Of Quizno's Of Wlren DecEber 2001Excccds ore Exandnes 21. $63.81 Qrizao's Did Activiti WhichQlrizno's Not 2001Plaos Its Post-Mcrgd Fo! PubliclvReveat il Air Tte Dccenber 2001Metgpr. 21. U (a) A Complete 21, Appraisal QuizDo'6 Of D.cember 2001 Of A6 RequiE$ Adab5is AFD, Quizlo'sCasbceaerating Ao Of
S\hridierv.

pl developcd s whichwouldma@pfovcdrt trial ltat duitrg 200t Quiztro's Respondents be' s&eamE tlajof rcvenue ilclerasc profits. Quizno's ally rl&r its business expoDemlally and its stroaD. A mlnoi revcillrg it8 ad foie 2001\Nere ftarphis Evetlle sllaJn its rotrlty te.tef,tD fes p(opdetary to was daivedby "licenshg"suppliers sellQuizao's stleam lhe feergvenue Eoducts. chffgcdfor arcadircctorships. Therewereotherminorreverue as Btralrl|t well, e.8., fees r plttr Theq dutitrg2001QuizDo's gndualy, ad quidly, impleNtreotcd to dratnticslly as lhis lhat chanSe business nodcl. TheviterE at tjial proves Quizrp'shaddetemdnd, e-arly th pemfttedit to rach couldcbange nanas2000,that,oE its growth cdticalrnass, QuizDo's tr Thesizeof thedisparlry projcled by Quiztro's' frarchist ad betwc!tr frarchise salcs (as evldelE, inctudiryExhiblbB-2 atd sales by acoally acconplisbed cstablish.d docitmeDhry Z-ll), is astonishiry: 3Br/0{ St3ont gtnnt ,,ntm 3rnft2 dng2 qnto DBUS2,
hoi.cEd Frarcti$ Srlcs Acrui FrarEbisc SNlca Diff.rcnccof Actr.l rd PrG j.c!.d 3uoulativeDfferclc

r03
ll6

105
l9E

E6

85
321

261
175 281

3r6

90 523
433

94

377 283 I,455

80 346 M
1,121

93 t3
106

216 5t7

t,rn

Theresirnplyis no waytbrt NgoodfstthpaftywouldhsvelcFescnhdto milority stock' holdertlhe fairass of a fuule bqsed Fojections rcdarkablywlong,ud knowoto be so oo 60 rmrrtablywrong. Thisis, bowever, whatQuiztp'sdid. exactly

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products, i0 ner in whichit daltwith sulplicrs. Rattler than"licnse" suppliers sellpmprietary products.AFD proptietary couldform its owtrsubsidirry, AFD, whighwouldpurchase Quizno's product! Quiao's "captiv"marto alld, through distsibutor, these wouldin tum mafk-up a 6ell a permitQuizro'slo ge'terab huge ket, i e., theftatchisees.Thi$chaqe in oprations $,ould and alrx}rrnt gross revenuc.Quiztro's of narketabitityto lcveBgeits $izeh pucbasi4 Products, wereActon whichenabled contnctu.l ability !o levcligpits c.flhol of its ftalchiss, Quizno's additional !o a in Quizno's/AFD gererate laryepoolof cash. Thiscash, tum, wouldconstihrte couldbe prcfitswhich,at rhediscretion tlc post-merger of o$'ners qrizl{''s (tlle&hadens), of fasEr disrihrted asprofrtsor couldbere-investd rheconpatry rampup gtofih ai atlvrt h lo rate(asQuiano's 2002rerultsdeoonltrate) p.ovedat uial thrt Quiztlo's this Respo[dents skillfrtly ittplementcd veryplat. Quiztro's activclyoperated AFD during2001,but AFD {tidnotmaorcuntil 2n02. Dudng2002AFD genera&dgros$ rcvenres approxinaEly of $153,600,m0 I frgutewhichexccded Quimo'scoorrew AFD genrrated binedreveuue in slreams ea ie! year.. Justesitlportldly, duiDg20U2 plofits for Quizro's- h fact$20,000,000 Folits - a figurewhichdtrrfd Qliano'8profits ir i'l earlieryea$ (ihis $20,000,000 fout ftguraloDe almost dinsl4rgcrthm Quizro's2001 was electd !o uudjused EBITDAof sfuttly rnorcrhan$5,000,000)." During2002tlE schadens

2 Thercc{q bcoo disputc 6e profit- Ingeneratcd AFD c@stituted by tbat $m,000,000 gertal cotlnsel, ackto\r,ldgd ded,Quizno's v/iupssat Eial, PatM.yer, Esq.,Quizoo's flrst "couldpurftir money hi! poclct' (5nlg3 Tr., p,371. thatRichard Scbadco E. in As discussed abovc, Scbadeos the dcaidcd to put ftg rloEy inio tbeirpocklrs. Tbeydeoot cidedto .cirvsrthe $20,000,000 Quizno's which,aftsrDeceober 2001 thcyowned 21, in of , apploximarely to 65%. TheSchadeDs this irlvesttrlent usiry 6r cash tuld a natiotrrlrdmade by vnising catr@aigtr, Schrdero' The atry decision aotrnake $20,000,000 lssprofrt;ihe did thc Schade$'decision merclyrcflccEdhowttE Schadns !o urc tbchprofits. chos

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profrtstn atlextrrordinary uDprccedc[td campaign natiomladvrtising reinvsst these huge ald fiIst mrdepublicthloughQuizDo's of Bowl2002,3 spolsorship Super At drepre-trialstages thiscase, at of scoffed tbenotiootbalAFD wara huge Quizno's pront gercrator. Bur,at trial, Quizoo's bald to rcliedonlyuponSchadcr's tErtimony alguethat presefied substae no the ltnplrlrentadon AFD h8dnortraEriallycbmged of Quizno's.QuizDo'r a$ Groupclainr lt ts. indicating AFD wasnotevery asvaluable lheFagan tlatingevidence tlut bil at Indeed, dE mo6tpan, Quizno's for !o largelysoughl avoidthesubject tsial. Quizm'selicited no from its cxpcftwihcsses concerdtrg AFD." Quizlo's alsotEverasked Drasticauy tstimony 21, cF its expenc explail horranrppraisal Quizno's, of Decanbe! 2001,coulddiscount to of as tirely a subBidiary qonpa$y$aDgisg of iwortasr vbich qd4o'r koe\snould gwtat! ttriland liotrsof dolrs itr profttsio tle yari@di8telyafur themrgr in larerycars.s a As a formrl matter, otr of $3,700,000 DptitrcorrE AFD'S2002linaF Quizro'sreported 'ret ilcotrr" figurcresulbfromdcducliog $20,000,000 dE consainrtilg discials, hrt, this ftr crctiolsry advertisirg cortrihlion. QuiaD'sprcry st buDtprojectioNfor 20q2ircMed ooly inpofns for thetho rm idesifild as"LicalsingfeesrDiltihtiior sal6), $a,600,S00 z pric. P.ohpek whclher, durirBhis 200G2@lwork fonrultfing r merger Quizto'sasked hel|ad "concidered' nofting turther(Tr. AFD. Prokupek helrd do! soandoffered said 6/10/m.193-194). 4 As it wasrequired do by aDpltcabl to ftderallaw. Qd4o'8 Novetrter5, 2001Proxy (Exactiotr strteme[trefend!o lhefacttlnt disse ing srockholders putgu dlss!trte.s' a could ftat hibtt F2, p, ,14). Thercis no quertion QBizDo'6/t[e expected dlerwouldbe that Scbadens (actlu t!.rro4hlheir "mc4er" e ity Firenze), dissenters, SchadcB reslrvingtberighl to thg "than170,000 withdrawftom themerger Frsonsholdiqg mor is$ed andoursboditu if m (id, shalcB" Quizno's of srock alecEd disseDi , at p. 34. !o of focus tooiqally, theSclnd s' obyious upo! thcpossibility disce e[s' righ lttiSatioo, poiotsup theextraordimiy were$ocfhoEerc v&lue whicbAFD coDtibubdto Qutzlo's. Evetr (asiss happercd), everwcle each holciogapproximately .rd 400,000 to Ehrrcs dissent QuizDo's (anrtatingiDlocorsidlration $8.50Quizno's rceded of tbose io thc $hares bvslued $50,00 at judgmgnt !o payto eftctfic theeetgcr), Quiao's xrould ableio futd thecdtirE oteEd be Ngaiost itr thir car(|ssuninga $58.50 pdce)witbrDercly AlDgelrntd discredornry it ib ptof,tfur oM yeqr. (coftinued.. .)

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(b) Documentary Establishes Quizro'sBlievd, Evidence That BforDecmber , 2001 TbatAFD WouldMaterially 2l , "Fair Valuc'. Ipcrease Ouizno's ProlitsAtd Ouizpo'6 possibly srgu that,asof Summer Fall, 2001,AFD wasa speculative will Quizno's venturE, Quizno's that in lhe couldnothsveforeseen proirts\{hichAFD wot d ge!rale 2002and poiential gercratiotr profit! througb AFD thouldb igoored,Re'ipoltdnt, therefore, of Quizno's prc"rnrger part busircss deDts that Foved at trial, bowever, AFD nas an iotsgral of Quizno's platrandthat,beforDec&mber 2001,Qriao's tully aDticipard hugi profl$ from 21, Seneratirg whichsuppofis conclusiot!. AFD. honic.ly, Schadctr this hinself fumisbd sonEofrhc evidence idirecdy alluded More padicula y, duringhis 2000corve$atious Dvomk,Scbadeo with to theAFD plall, wheoheboasied ald on about QuiaD'snplEsfu Sxowth wbenhe leferredto carprigtr (whichwouldbe fuded by { Quizrc's rehtedplaoto develop mdoial advertising AFD): Wened getto a sizcwhere cattbemoreefui.e\t utitheledrcnictrcdia afr gd to ve tlere asfart aswe can. (Exhibh6-13; enphasis $pplied). Tbisplanwouldmaterialychrnge QuizDotma*etiog effons: Sorneline fte ncatfuffie [we]rre goingto rnake ${ith to the4 perce fte fta& a in peysfor adveltising, novemoney ahisee to to owoy Irdtr tocalco-w qdrvrtisiag t E hottotwl d, lut (ExhibitCFl3: eryhssissupplicd). his FaAt tial Schaden to eiher ctaimed lackof leaalte.tioD a about sta&@ms Messrs. ga! ad Dvorak,o! dispu@d geDeralized thro. But,olberthsnofferirg such assertioDs, Quiz[o's Thetrlajoritystoctnolderr tbiscsse, in mostdissenErs' casc6, ir utrdcrstood tttcir that as plaued t'ke-overwouldbe veryprofitrbleto themeveo theyultimetely verc calledto tsskby, if aDd requifcdto actually 'fa|I value"to, some p6y peslry disslmgrs.

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produced eviderEc thal ve$ionof tlrcse cotrve$atioDs, irdicatiDg or !o colfloitrg Schadeo's cootaoporaleouslySchadeo trotsaidgci6elywha!wasattrhutd bim h Dvorak'8 had to prepared rnmoratdum.b sets Docunentary evidace wbichEorcdireclly,andEole draoatiaally, for$ Quizno's profits,is Dvorak's of pre-Dccember 2001planfor AFD, ad Quiano's 21, epectatioDs huge 2m1 wih coltfirporarEosly-prspared npmorardm of hir November, cotNctsadon Mark (ard, asof lhc tins of his Laramie. AI lhattine Mr. laramie,a formerQuizno's exeqrtive with deposition, partyio anongoing I seveftrrsc agreencnt Quizoo's). FovidedDvorakwith r of detsiled explanatioD AFD: sto{es 2002,tires $400Ksals io for His tlalaloic'Bl rougbcakulatiore QIJIZ: 1500 per storcis $600nntrsystedlwid lalcs, Of lhat$600Ds in tales,nsybc 35%of ody thatis pircbasd COGS lhefrarchisce, maybe 25* ir h dlcd urder the but by proprictsry plograll [AFD]. Thcother10fr h coooodity sftfr $rchasl4oce, etc. qihichyouc{Illot do thison. $600 *25%equel6 me $150tl!| annuly of ptoduct purchas youcatrslelter,ard yorlcancapi$estlxr8dlO% oIts.Nt sothfr 8el3 that youto 815nm stmlgtt l o Qutzto't. (ExhibitI-13; enphasis himself explhitly exhad supptied). Larambrt &d ss wel thatSchade! plailcd thisanticipated naoagenFr$; rc $15,000,000 Quizno's 6 Thh Coult should noteof evidelc. suppondoctunentrry lale to Q{riaD'sfailurE produc produced conno ing Dmy of 0p testirDodal of assenions i6 tritrE*les. Forcxatple, Quizno's Scbaden's versioD 2003 tgmporueoru rctes, tDmor.rda, or e-rnails, mything$imilff confirDing and of theconvcr$atlons mtings hrd nith MessN. ald he Fogan Dvorakh 20G2001. pmducdotr publiclyaYailable of Of equal corlcetD lhe la.t thlr, notri'rthsraDdiDg is lis sizeabtc docuneds,Quizro'sfoiledto produc4 docunreoh whichgo !o thahca$of tbiscase.MessrsFag.r| ad Dvoflk, inte.esed of but, iryestors rfrc. all, ody milority itrvlsto$, poduceddozerE 'stlcam iffemal analyss Quiao's whichtlteylcrforned, iocMiry docunc*saohforuul a8 of nernoof soDsciou$ess Doti' (6n6l03Tr. 34). Ir coDhast, hatdlya siDgle Quizlo'spmduced betwcto nduD senirrg forth its hllrDrl calculsriotr "fNirvaluc",corcrdlg on tbcdisparity of priceaDd "valur', stc. It is i[cotreivablctbattheSchadeB, spetrt hu8who itr Quizro'smarliet 'taf,-oY6"plaq drc& of theirtroursandmillioosof dollars QuizDo's of moEy, to crtrsfirsl a did lot i ernEy geErac detailqd a$lys6 ru$iningtblikelyolltw of I take-over.Yet goducodno such docuteot!at tsial. Quiztro's

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lllltnbrs guyssndshowed fsicl guyssomc lhis ...[aramie] says Rict iold these that jives witb his relrtivelysootr which whichsuppon theywill getto thit $15rna run-rate back-of-dr-envelope estirnate whattheysloulddo. Ee thintsthisis alsov ty tlE! of to ar. pushing try to ga thi deal clot d assoon possible thisisnl dbchsedin to as thepttblic doctmcnls. (ExhibitH3; enphasis (6/16103 140). supplied) Tr., klowirg Ttis mcraorandum capturcs essemt thi$care, TheSchadeDr/Quizno's, ftr of atd thattheirplansfot AFD wouldd&naticallyirlcrgudresizeof Quizno's operatioas Quizno's "mcrget"before would sharycs opcrations itl theircocrcive those Datrial Fofits, effectraEd s,ouldhave ideaabott thereal any become bcfoB thepublfostockiolders eyident aod,lhcrEfore, profits,of whichthepublicstockholdas sizof Quizoo's wore idedto thirproponionate 2001!o iEplemqf rhisrew shffe. TheSchsdens/Quizoo's, alr&dy baving begu in ScpteBbcr, lhis Bowl,triltully concealed itrard highlymatetial advedising campaig! feauirg th Sxper fomution ftom &e public,'

' At theconclusion Mr. Meyer'sexamination coursel, Courtputqu6stioD8 Mr. to this by of Meycl whichlvredirectlyfocusd ltcse lssues, on tbe leff First, theCourt'squestiols, Meyer'sa$werstherto, Dodoubtabout ftct that and beforcthpEergrt (Tt.5nn3,p, AFD, ihis vcry substraairl subsldlary, fonrd sigdfrcaotly was 6$. to Scord, CounasLed Meyertheimportmtqustlon wbetr the of Quizto'sfust cootrtitlEd it (Ir, 5fil03, p. 66), MeyerhiBdcnaketheSupar Bor 2ff rdycrtiEilgaDd laid foi fr$t " tially swgesbdthatQuizno's otrlycormittd".t tllc ald of 2001 ud fi6t poidi! Fcbruary, rqui&dMeyerto pursued 0trvake 20O2.But, cross-exrminatior, ir| oftbe Coitrt'squestioDing' comtdethatu/4d Quizlo'r hrd commilted thisexuaorditrrycrryaig, ad hadrccrued to 2001 for to $1,400,000 palmefi relatcd ia,ar eadyasSeptember, (5rl03, w,73Js). Therecord established Quizno's thst co.Eesled ttrcs coopelliry facoftom thepublicstockdl9holdqefor moftbs. Had Quiuo's beu catuidh itsNovetfier5, 2NI pr6t statedBnt, qpected clos.dtheprofxs it abdtisinB co'.rpatgn, lha frort AFD, revealed natunothnationol uged thepu tc and*plained itt acceletuled powth, Quiuto'sn vercouv lpv. concunently wou6 haverevealed ttocmowers ,lE $8.50"na*4 ice" was diEcloswes thac Jsir. Quiaul thc "rtcrgerptucess" thecharvdc tms . it Iot

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