Guinness Atkinson Asset Management, Inc.

Event Detail: (1) 1 COUNT UNINTENTIONAL SHIPWRECK CAUSING A DANGER TO PUBLIC SAFETY IN VIOLATION OF ART. 428, PARA 3 THROUGH 449, PARA 1, ITALIAN CRIMINAL CODE, BY IMPRUDENTLY, INEXPERIENCEDLY & NEGLIGENTLY OPERATING A BOAT DURING NIGHTTIME WITH INAPPROPRIATE CONDITIONS FOR NAVIGATION, INCLUDING WEATHER CONDITIONS PRECLUDING SUFFICIENT VISIBILITY, SPEED IN EXCESS OF 7 KNOTS & CARRYING MORE PASSENGERS THAN PERMITTED 2) JURISDICTION IN WHICH CRIME OCCURRED DOES NOT DESIGNATE OFFENSES AS "FELONY" OR "MISDEMEANOR";AS THE CHARGE COULD CARRY A SENTENCE OF CONFINEMENT OF MORE THAN 1 YEAR APPLICANT TREATS OFFENSE AS A FELONY FOR PURPOSES OF FORM ADV 3) GUILTY. (2) 1 COUNT VIOLATION OF NAVIGATION REGULATIONS, UNDER ART. 81 ITALIAN CRIMINAL CODE & SECTION 1231 CODE OF NAVIGATION 2) CHARGE COULD CARRY SENTENCE OF CONFINEMENT OF 3 MONTHS, BUT DUE TO THE CHARGE IN (1)ABOVE, NO SENTENCE CAN BE IMPOSED UNDER SECTION 1231;APPLICANT TREATS OFFENSE AS MISDEMEANOR FOR PURPOSES OF FORM ADV 3) GUILTY. Status: Final Disposition: ON NOVEMBER 11, 2015, MR. GUINNESS WAS CONVICTED OF THE CHARGE BASED ON HIS PLEA. A PUNISHMENT OF A SUSPENDED SENTENCE FOR 5 MONTHS, 23 DAYS WAS IMPOSED (NO CONFINEMENT WILL RESULT). NO CRIMINAL FINES WERE IMPOSED IN THIS PROCEEDING. MR. GUINNESS PAID CIVIL FINES OF 3046.50 EUROS. Summary: ON MAY 3, 2015, MR. GUINNESS WAS DRIVING A BOAT THAT WAS INVOLVED IN AN ACCIDENT ON A LAKE. SEVERAL PASSENGERS SUFFERED INJURIES; THE BOAT WAS DAMAGED AND SANK. MR. GUINNESS WAS CHARGED WITH THE OFFENSE OF "UNINTENTIONAL SHIPWRECK". THE COURT RECOGNIZED MR. GUINNESS' ACTIONS IN ASSISTING THE PASSENGERS TO SAFETY AND PROVIDING SUPPORT AND CARE FOR THE PASSENGERS AFTER THE SHIPWRECK. MR. GUINNESS WAS ALSO CHARGED WITH RELATED NAVIGATIONAL CODE VIOLATIONS FOR DRIVING A BOAT DURING NIGHT HOURS WITH INAPPROPRIATE CONDITIONS FOR NAVIGATION, INCLUDING WEATHER CONDITIONS PRECLUDING VISIBILITY AND EXCESSIVE SPEED; HAVING EXCESSIVE PERSONS; AND FAILING TO HAVE PROPER INSURANCE; HE IS CONTESTING ONE VIOLATION FOR IMPROPER NUMBER OF SAFETY INSTALLATIONS. MR. GUINNESS PAID FINES FOR THE VIOLATIONS IN CONNECTION WITH THIS EVENT, RELATING TO EXCESSIVE SPEED, EXCESSIVE PERSONS AND LACK OF PROPER INSURANCE, TOTALING 3046.50 EUROS; AN ADDITIONAL FINE OF 172.17 EUROS FOR ONE VIOLATION IS CURRENTLY BEING CONTESTED. ALL OTHER CLAIMS AND MATTERS RELATING TO THIS INCIDENT HAVE BEEN RESOLVED.