        5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
             3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

     (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                 )LOH 1DPH DS




81,7('67$7(6&28572)$33($/6
               )257+(6,;7+&,5&8,7
                 BBBBBBBBBBBBBBBBB


 */(11 $57+85 52%,1621           ;
          3ODLQWLII$SSHOOHH      
                                   
                                     1R
           Y                      
                                    !
                                   
 81,9(56,7< 2) $.521               
 6&+22/ 2) /$:                    
         'HIHQGDQW$SSHOODQW 
                                   
                                  1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
   1Rn6RORPRQ2OLYHUsU'LVWULFWsXGJH
                 $UJXHG$XJXVW
            'HFLGHGDQG)LOHG2FWREHU
 %HIRUH%2**61255,6DQG6,/(5&LUFXLWsXGJHV
                   BBBBBBBBBBBBBBBBB
                        &2816(/
$5*8('7DPDUD$2j%ULHQ52'(5,&.0<(56	
/,1721$NURQ2KLRIRU$SSHOODQW/RULDQQ()XKUHU
.(*/(5%52:1+,//	5,77(5&ROXPEXV2KLRIRU
$SSHOOHH  21 %5,()  6WHSKHQ s 3UXQHVNL 5REHUW )
/LQWRQ .LPEHUO\ $ .PHQWW 52'(5,&. 0<(56 	
/,1721 $NURQ 2KLR IRU $SSHOODQW  6WHSKHQ (

                             
     5RELQVRQY8QLYRI                          1R      1R                         5RELQVRQY8QLYRI        
      $NURQ6FKRRORI/DZ                                                                                $NURQ6FKRRORI/DZ

&KDSSHOHDU .(*/(5 %52:1 +,// 	 5,77(5                       YLDEOH$'$FODLPWKDWWKH8QLYHUVLW\GHQLHGKLPDFFHVVWR
&ROXPEXV2KLRIRU$SSHOOHH                                        SXEOLFHGXFDWLRQRQWKHEDVLVRIKLVOHDUQLQJGLVDELOLW\oLV
                                                                     HVVHQWLDOO\RQHWKDWKHZDVWUHDWHGGLIIHUHQWO\IURPRWKHUQRQ
                     BBBBBBBBBBBBBBBBB                               GLVDEOHG LQGLYLGXDOV DQG VRXQGV LQ HTXDO SURWHFWLRQ DV
                                                                     &DUWHQPDNHVFOHDU$OWKRXJKLQ&DUWHQZHQRWHGWKDWWKH
                         23,1,21                                     SODLQWLII PDGH QR DOOHJDWLRQ RI GHQLDO RI SURFHVV ZKHWKHU
                     BBBBBBBBBBBBBBBBB                               EDVHGRQKLVGLVDELOLW\RURWKHUZLVHWKLVVKRXOGQRWEHUHDGWR
                                                                     VXJJHVWWKDWDQDOOHJHGGHQLDORIGXHSURFHVVQRWSUHGLFDWHGRQ
  6,/(5 &LUFXLW sXGJH  'HIHQGDQW 8QLYHUVLW\ RI $NURQ        WKHSODLQWLIIjVGLVDELOLW\PD\EHMRLQHGWRDVWDQGDUGHTXDO
6FKRRORI/DZmWKH8QLYHUVLW\lDSSHDOVWKHGLVWULFWFRXUWjV        SURWHFWLRQVW\OH$'$FODLPWRGHIHDWVRYHUHLJQLPPXQLW\7R
GHQLDORILWVPRWLRQWRGLVPLVVWKHFODLPVRI3ODLQWLII*OHQQ        DOORZVXFKDFODLPZRXOGEHLQFRQVLVWHQWERWKZLWK*DUUHWW
$UWKXU5RELQVRQXQGHUWKH$PHULFDQVZLWK'LVDELOLWLHV$FW            DQG ZLWK WKLV FRXUWjV KROGLQJ LQ 3RSRYLFK  %HFDXVH
m$'$lDQGWKH5HKDELOLWDWLRQ$FW7KLVFRXUWVWD\HGRUDO          5RELQVRQjV $'$ FODLP HQIRUFHV RQO\ HTXDO SURWHFWLRQ
DUJXPHQW LQ WKLV FDVH SHQGLQJ WKH RXWFRPH RI VHYHUDO         JXDUDQWHHV 3RSRYLFK GRHV QRW VDYH LW DQG VRYHUHLJQ
6XSUHPH&RXUWDQG6L[WK&LUFXLWFDVHVUHOHYDQWWRWKHLVVXHV        LPPXQLW\EDUVLW
7KHVH FDVHV QRZ KDYH EHHQ GHFLGHG DQG EDVHG RQ WKHVH
GHFLVLRQVZH5(9(56(WKHGLVWULFWFRXUWDVWR5RELQVRQjV               :H5(9(56(WKHGLVWULFWFRXUWDVWR5RELQVRQjV$'$
$'$ FODLP DQG $)),50 LW DV WR KLV 5HKDELOLWDWLRQ $FW       7LWOH,,FODLP$)),50LWDVWRKLV5HKDELOLWDWLRQ$FWFODLP
FODLP                                                               DQG5(0$1'WKLVFDVHIRUIXUWKHUSURFHHGLQJVFRQVLVWHQW
                                                                     ZLWKWKLVGHFLVLRQ
                                ,
  5RELQVRQDWWHQGHGWKH8QLYHUVLW\DVWDWHVFKRROIURP
WR   $IWHU FRPSOHWLQJ KLV ILUVW ODZ VFKRRO H[DP KH
FRPSODLQHG WR WKH 8QLYHUVLW\jV GHDQ DERXW GLIILFXOW\ LQ
UHDGLQJ$8QLYHUVLW\GRFWRUWHVWHG5RELQVRQDQGFRQFOXGHG
WKDWKHVXIIHUHGIURPDOHDUQLQJGLVDELOLW\ZKLFKDIIHFWHGKLV
UHDGLQJVSHHGLQDGGLWLRQWRSUHYLRXVO\GLDJQRVHG$WWHQWLRQ
'HILFLW 'LVRUGHU  5RELQVRQ UHTXHVWHG XQOLPLWHG RU 
DGGLWLRQDO WLPH WR FRPSOHWH KLV H[DPV  $ WKUHHSHUVRQ
FRPPLWWHHFRQVLGHUHGKLVUHTXHVWDQGDJUHHGWRJLYHKLP
DGGLWLRQDO WLPH  5RELQVRQ SURWHVWHG WKH GHFLVLRQ EXW WKH
8QLYHUVLW\UHIXVHGWRUHFRQVLGHULW
  5RELQVRQXOWLPDWHO\ZLWKGUHZIURPWKH8QLYHUVLW\DQGILOHG
WKLVDFWLRQIRUPRQH\GDPDJHVLQGLVWULFWFRXUWDOOHJLQJWKDW
WKH 8QLYHUVLW\ IDLOHG WR DFFRPPRGDWH KLV GLVDELOLW\ LQ
YLRODWLRQRI$'$7LWOH,,DQGWKH5HKDELOLWDWLRQ$FW7KH
8QLYHUVLW\PRYHGWRGLVPLVV5RELQVRQjVFODLPVRQWKHEDVLV
      5RELQVRQY8QLYRI                          1R       1R                              5RELQVRQY8QLYRI            
       $NURQ6FKRRORI/DZ                                                                                      $NURQ6FKRRORI/DZ

    WKDW WKH GHIHQGDQWV GHQLHG KLP DGHTXDWH SURFHVV LQ          RI(OHYHQWK$PHQGPHQWLPPXQLW\.7KHGLVWULFWFRXUWGHQLHG
    GLVPLVVLQJ KLP  $OWKRXJK KH FRQWHQGV WKDW WKH              WKH8QLYHUVLW\jVFODLPRILPPXQLW\DQGWKH8QLYHUVLW\WKHQ
    GHIHQGDQWV LPSURSHUO\ EDVHG WKHLU GHFLVLRQ WR GLVPLVV        EURXJKWWKLVDSSHDO
    KLP RQ KLV GLVDELOLW\ KH DFNQRZOHGJHV WKDW KH ZDV
    DIIRUGHG D KHDULQJ RQ WKH GLVPLVVDO RQ 6HSWHPEHU          :HVWD\HGRUDODUJXPHQWSHQGLQJWKHRXWFRPHRIWZRFDVHV
     DQG PDNHV QR FODLP WKDW KH ZDV HQWLWOHG WR          %RDUGRI7UXVWHHVRIWKH8QLYHUVLW\RI$ODEDPDY*DUUHWW
    DGGLWLRQDOSURFHGXUHEH\RQGWKDWKHDULQJ                           86   DQG 1LKLVHU Y 2KLR (QYLURQPHQWDO
                                                                       3URWHFWLRQ$JHQF\)GWK&LUUHOHYDQWWR
,G(DFKRIWKHSDUWLHVDUJXHVWKDW&DUWHQUHTXLUHVDILQGLQJ         5RELQVRQjVFODLPV'XULQJWKHSHQGHQF\RIWKHVWD\DQHQ
LQLWVIDYRU7KH8QLYHUVLW\DUJXHVWKDWKHUHDVLQ&DUWHQ          EDQF SDQHO RI WKLV FRXUW GHFLGHG 3RSRYLFK Y &X\DKRJD
5RELQVRQDOOHJHVWKDWKHZDVH[FOXGHGIURPSDUWLFLSDWLRQLQ            &RXQW\&RXUWRI&RPPRQ3OHDV)GWK&LU
VWDWHVSRQVRUHGHGXFDWLRQRQWKHEDVLVRIKLVGLVDELOLW\DQG           HQEDQFZKLFKDOVRDIIHFWVWKHUHVROXWLRQRIWKRVHFODLPV
WKDW XQGHU WKH DQDO\VLV RI &DUWHQ VXFK D FODLP VRXQGV LQ
HTXDO SURWHFWLRQ  5RELQVRQ UHVSRQGV WKDW KH XQOLNH WKH         ,Q1LKLVHUWKLVFRXUWKHOGWKDW2KLRKDVZDLYHG(OHYHQWK
&DUWHQ SODLQWLII DOOHJHV WKDW WKH 8QLYHUVLW\ GHQLHG KLP        $PHQGPHQWLPPXQLW\DJDLQVW5HKDELOLWDWLRQ$FWFODLPV6HH
DGHTXDWHSURFHVVLQUHIXVLQJWRDFFRPPRGDWHKLVGLVDELOLW\            )GDW
,QSDUWLFXODU5RELQVRQDOOHJHVWKDWKHmZDVQHYHUJLYHQDQ
RSSRUWXQLW\ WR DSSHDU DW DQ\ RI WKH SURFHHGLQJV ZKHUH            ,Q*DUUHWWWKH6XSUHPH&RXUWKHOGWKDWVWDWHVDUHLPPXQH
'HIHQGDQW8QLYHUVLW\’s HPSOR\HHVFKRVHWKHDFFRPPRGDWLRQ               WRVXLWVIRUPRQH\GDPDJHVXQGHU7LWOH,RIWKH$'$7KH
WREHSURYLGHGWR3ODLQWLIIIRUKLVGLVDELOLWLHVl5HO\LQJRQWKH     &RXUW UHDVRQHG WKDW $'$ 7LWOH , DV HQDFWHG H[FHHGHG
DERYH SDVVDJH IURP &DUWHQ 5RELQVRQ DUJXHV WKDW FODLPV          &RQJUHVVj FRQVWLWXWLRQDO DXWKRULW\ WR HQIRUFH WKH (TXDO
LQFOXGLQJVXFKDOOHJDWLRQVVRXQGLQGXHSURFHVV                       3URWHFWLRQ&ODXVHRIWKH)RXUWHHQWK$PHQGPHQWDQGDVVXFK
                                                                       ZDV DQ LQYDOLG DEURJDWLRQ RI VWDWHVj (OHYHQWK $PHQGPHQW
   :HGLVDJUHH7KHHVVHQWLDOKROGLQJRI3RSRYLFKLVWKDWD           VRYHUHLJQLPPXQLW\6HH86DW,QRUGHUWREHD
7LWOH,,FODLPVRXQGVLQGXHSURFHVVDQGDEURJDWHVVRYHUHLJQ           YDOLGH[HUFLVHRIWKLVHQIRUFHPHQWDXWKRULW\OHJLVODWLRQPXVW
LPPXQLW\ ZKHUH WKH SODLQWLII DOOHJHV WKDW KH ZDV H[FOXGHG      UHVSRQG WR D GRFXPHQWHG mKLVWRU\ DQG SDWWHUQ RI
IURPSDUWLFLSDWLQJLQDSURFHHGLQJJXDUDQWHHGWRKLPE\WKH            XQFRQVWLWXWLRQDOuGLVFULPLQDWLRQE\WKH6WDWHVlDQGPXVWRQ
'XH 3URFHVV &ODXVH RQ WKH EDVLV RI KLV GLVDELOLW\  6HH      EDODQFH EH FRQJUXHQW DQG SURSRUWLRQDO WR WKH VFRSH RI WKH
3RSRYLFK)GDWKROGLQJWKDWm*DUUHWWGRHVQRW
IRUHFORVH D WULDO DQG YHUGLFW EDVHG RQ  XQUHDVRQDEOH             
H[FOXVLRQIURPMXGLFLDOSURFHHGLQJVEDVHGRQGLVDELOLW\LQD                 7KH (OHYHQWK $PHQGPHQW VWDWHV WKDW

GXH SURFHVVW\SH FODLPl  +HUH DOWKRXJK 5RELQVRQ
FRPSODLQVWKDWWKH8QLYHUVLW\EDUUHGKLPIURPKHDULQJVRQKLV               7KH sXGLFLDO SRZHU RI WKH 8QLWHG 6WDWHV VKDOO QRW EH FRQVWUXHG


FDVH KH PDNHV QR FODLP WKDW KH ZDV H[FOXGHG IURP WKHVH           WR H[WHQG WR DQ\ VXLW LQ ODZ RU HTXLW\ FRPPHQFHG RU SURVHFXWHG
                                                                            DJDLQVW RQH RI WKH 8QLWHG 6WDWHV E\ &LWL]HQV RI DQRWKHU 6WDWH RU
KHDULQJVEHFDXVHRIKLVGLVDELOLW\6XFKDFODLPLVRXWVLGHWKH            E\ &LWL]HQV RU 6XEMHFWV RI DQ\ )RUHLJQ 6WDWH
VFRSHRI3RSRYLFKEHFDXVHLWQRWDQ$'$FODLPWKHUHLVQR
DOOHJDWLRQ RI GLVFULPLQDWLRQ WR VXSSRUW LW o DQG PXVW EH      86 &RQVW DPHQG ;,

EURXJKWLIDWDOODVDFODLPIRUYLRODWLRQRI5RELQVRQjVGXH              
SURFHVVULJKWVSXUVXDQWWR86&5RELQVRQjVRQO\                $'$ 7LWOH , SURKLELWV HPSOR\PHQW GLVFULPLQDWLRQ RQ WKH EDVLV RI
                                                                       GLVDELOLW\
          5RELQVRQY8QLYRI                                      1R          1R                             5RELQVRQY8QLYRI           
           $NURQ6FKRRORI/DZ                                                                                                    $NURQ6FKRRORI/DZ

ULJKWLWHQIRUFHV,GDW7KH&RXUWH[SODLQHGWKDW                            FKLOGUHQ  7KH FRXUW IRXQG WKDW LQ VXFK D FDVH WKH
EHFDXVHGLVDELOLW\LVQRWDVXVSHFWFODVVWKH(TXDO3URWHFWLRQ                           FRQVWLWXWLRQDOULJKWHQIRUFHGE\7LWOH,,ZDVWKHSODLQWLIIjVGXH
&ODXVHDOORZVVWDWHVWRPDNHGLVWLQFWLRQVLQHPSOR\PHQWRQ                                SURFHVVULJKW6HH LGDW7KHFRXUWUHDVRQHGWKDWWKH
WKHEDVLVRIGLVDELOLW\VRORQJDVWKH\DUHUDWLRQDOO\UHODWHGWR                         VFRSH RI GXH SURFHVV SURWHFWLRQ LV EURDG DQG JRHV EH\RQG
DOHJLWLPDWHVWDWHSXUSRVH6HHLGDW$VDFRUROODU\                           VLPSO\UHTXLULQJDUDWLRQDOEDVLVIRUJRYHUQPHQWDFWLRQ6HH
WRWKLVSULQFLSOHm6WDWHVDUHQRWUHTXLUHGE\WKH)RXUWHHQWK                             LG DW   7KXV WKH ULJKWV VHFXUHG WR WKH SODLQWLII E\ WKH
$PHQGPHQW WR PDNH VSHFLDO DFFRPPRGDWLRQV IRU WKH                                    VWDWXWH LQ VXFK D FDVH GLG QRW H[FHHG WKH VFRSH RI WKH
GLVDEOHGVRORQJDVWKHLUDFWLRQVWRZDUGVXFKLQGLYLGXDOVDUH                            FRQVWLWXWLRQDO ULJKW KH VRXJKW WR HQIRUFH DQG KLV FODLP
UDWLRQDOl,GDW$FFRUGLQJO\WKH&RXUWFRQFOXGHGWKDW                            WKHUHIRUHYDOLGO\DEURJDWHGVWDWHVRYHUHLJQLPPXQLW\6HHLG
$'$ 7LWOH , ZKLFK FDWHJRULFDOO\ UHTXLUHV VXFK                                      DWH[SODLQLQJWKDWm>D@VDSSOLHGWRWKHFDVHEHIRUHXV
DFFRPPRGDWLRQVZLWKRXWUHJDUGWRWKHH[LVWHQFHRIDUDWLRQDO                              WKH µSDUWLFLSDWLRQj UHTXLUHPHQW RI 7LWOH ,, VHUYHV WR SURWHFW
EDVLVIRUGLVFULPLQDWLRQZDVRYHUEURDGDQGGLVSURSRUWLRQDO                               >WKHSODLQWLIIjV@GXHSURFHVVULJKWWRDPHDQLQJIXOKHDULQJ
WRWKHVFRSHRI(TXDO3URWHFWLRQJXDUDQWHHV6HHLGDW                             µHQIRUFLQJjWKHGXHSURFHVVULJKWUDWKHUWKDQµH[SDQGLQJjLWl
+RZHYHULWVSHFLILFDOO\GHFOLQHGWRDGGUHVV$'$7LWOH
,, ZKLFK SURKLELWV VWDWHV IURP GLVFULPLQDWLQJ DJDLQVW WKH                           7KH8QLYHUVLW\FRQFHGHVLQOLJKWRI1LKLVHUWKDWWKHGLVWULFW
GLVDEOHGLQWKHSURYLVLRQRISXEOLFVHUYLFHVUHDVRQLQJWKDW                              FRXUWFRUUHFWO\GHQLHGLWVPRWLRQWRGLVPLVVDVWR5RELQVRQjV
7LWOH,,mKDVVRPHZKDWGLIIHUHQWUHPHGLDOSURYLVLRQVl,GDW                            5HKDELOLWDWLRQ $FW FODLP  +RZHYHU WKH SDUWLHV GLVSXWH
Q                                                                               ZKHWKHU VRYHUHLJQ LPPXQLW\ EDUV 5RELQVRQjV FODLP XQGHU
                                                                                          $'$7LWOH,,
   ,Q3RSRYLFKWKLVFRXUWDSSOLHGWKH*DUUHWWDQDO\VLVWR$'$
7LWOH ,, DQG FRQFOXGHG WKDW LW OLNHZLVH H[FHHGHG &RQJUHVVj                                                          ,,
SRZHUVWRHQIRUFHWKH(TXDO3URWHFWLRQ&ODXVH6HH)G
DW+RZHYHUWKHFRXUWKHOGWKDW$'$7LWOH,,PD\                                 7KH DSSOLFDELOLW\ RI WKH (OHYHQWK $PHQGPHQW WR FODLPV
YDOLGO\ DEURJDWH VWDWH VRYHUHLJQ LPPXQLW\ LQ FHUWDLQ FDVHV                         DJDLQVWWKHVWDWHVXQGHUWKH$'$LVDTXHVWLRQRIODZZKLFK
ZKHUH LW LV XVHG WR HQIRUFH 'XH 3URFHVV UDWKHU WKDQ (TXDO                       WKLV&RXUWUHYLHZVGHQRYR6HH7LPPHUY0LFKLJDQ'HSjWRI
3URWHFWLRQJXDUDQWHHV6HHLGDW,Q3RSRYLFK                             &RPPHUFH)GWK&LU
WKHSODLQWLIIFODLPHGWKDWWKHVWDWHjVUHIXVDOWRDFFRPPRGDWH
KLVKHDULQJGLVDELOLW\GHQLHGKLPWKHRSSRUWXQLW\WRSDUWLFLSDWH                            ,Q&DUWHQY.HQW6WDWH8QLYHUVLW\)GWK&LU
PHDQLQJIXOO\ LQ D KHDULQJ WR GHWHUPLQH FXVWRG\ RI KLV                              WKLV FRXUW KHOG WKDW VRYHUHLJQ LPPXQLW\ EDUUHG D
                                                                                          JUDGXDWH VWXGHQWjV $'$ 7LWOH ,, FODLP DJDLQVW WKH VWDWH
                                                                                          XQLYHUVLW\KHDWWHQGHG7KHVWXGHQWDUJXHGWKDWWKHXQLYHUVLW\
      
                                                                                          KDG HIIHFWLYHO\ H[FOXGHG KLP IURP SDUWLFLSDWLQJ LQ SXEOLF
       7KH FRXUW DOVR KHOG WKDW $'$ 7LWOH , IDLOHG WKH ILUVW SDUW RI LWV WHVW             HGXFDWLRQE\IDLOLQJWRPDNHUHDVRQDEOHDFFRPPRGDWLRQVIRU
LQ   WKDW   LW   IDLOHG   WR   DGHTXDWHO\   GRFXPHQW   D   KLVWRU\   DQG   SDWWHUQ   RI
                                                                                          KLV OHDUQLQJ GLVDELOLW\  6HH LG DW   7KLV FRXUW
XQFRQVWLWXWLRQDO GLVFULPLQDWLRQ DJDLQVW WKH VWDWHV          6HH LG DW 
                                                                                          DFNQRZOHGJHGWKHKROGLQJLQ3RSRYLFKDQGUHDVRQHGWKDW
      
          $'$ 7LWOH ,, VWDWHV WKDW mQR TXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\
                                                                                            +HUH &DUWHQ PDNHV QR DOOHJDWLRQV WKDW VRXQG LQ GXH
VKDOO E\ UHDVRQ RI VXFK GLVDELOLW\ EH H[FOXGHG IURP SDUWLFLSDWLRQ LQ RU EH
GHQLHG WKH EHQHILWV RI WKH VHUYLFHV SURJUDPV RU DFWLYLWLHV RI D SXEOLF
                                                                                            SURFHVV&DUWHQFRPSODLQVWKDWKHZDVGHQLHGDFFHVVWR
HQWLW\ RU EH VXEMHFWHG WR GLVFULPLQDWLRQ E\ DQ\ VXFK HQWLW\l              86&
                                                                                            SXEOLF HGXFDWLRQ QRW DQ RSSRUWXQLW\ WR SDUWLFLSDWH
V                                                                                     PHDQLQJIXOO\LQMXGLFLDOSURFHHGLQJV1RUGRHVKHFODLP
