      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


716 ,1&                     ;
                    3HWLWLRQHU 
             &URVV5HVSRQGHQW  
                                   1RV
                                   
          Y                     !
                                
                                
1$7,21$/ /$%25 5(/$7,216 
%2$5'                          
                 5HVSRQGHQW 
             &URVV3HWLWLRQHU 
                                
                                
3$3(5 $//,(',1'8675,$/       
&+(0,&$/ 	 (1(5*<               
:25.(56 ,17(51$7,21$/           
81,21                          
                   ,QWHUYHQRU 
                                
                                
                               1
   2Q3HWLWLRQIRU5HYLHZDQG&URVV$SSOLFDWLRQIRU
              (QIRUFHPHQWRIDQ2UGHURI
         WKH1DWLRQDO/DERU5HODWLRQV%RDUG
          1RV&$&$
               $UJXHG6HSWHPEHU
             'HFLGHGDQG)LOHGsXO\


                            
    716,QFY1/5%                1RV

 %HIRUH.(11('<*8<DQG%2**6&LUFXLWsXGJHV
                    BBBBBBBBBBBBBBBBB
                         &2816(/
$5*8(':LOOLDP0(DUQHVW(/$5%((7+203621
	75$31(//$WODQWD*HRUJLDIRU3HWLWLRQHU(GZDUG)
+XJKHV 1$7,21$/ /$%25 5(/$7,216 %2$5'
$33(//$7( &2857 %5$1&+ :DVKLQJWRQ '& IRU
5HVSRQGHQW21%5,():LOOLDP0(DUQHVW5REHUW/
7KRPSVRQ (/$5%(( 7+203621 	 75$31(//
$WODQWD*HRUJLDIRU3HWLWLRQHU(GZDUG)+XJKHV$LOHHQ
$ $UPVWURQJ +RZDUG ( 3HUOVWHLQ 1$7,21$/ /$%25
5(/$7,216%2$5'$33(//$7( &2857%5$1&+
:DVKLQJWRQ'&IRU5HVSRQGHQW'RQDOG(sRVH'DYLG
:LHGLV.ULVWHQ%.RPHUs26(	:,(',6:HVW&KHVWHU
3HQQV\OYDQLD*HRUJH+&RKHQ/DXUHQFH6*ROGsHUHPLDK
$ &ROOLQV 5REHUW $OH[DQGHU %5('+2)) 	 .$,6(5
:DVKLQJWRQ'&IRU,QWHUYHQRU+HDWKHU/0DF'RXJDOO
0F*8,1(661255,6	:,//,$06:DVKLQJWRQ'&
IRU$PLFXV&XULDH
                    BBBBBBBBBBBBBBBBB
                        23,1,21
                    BBBBBBBBBBBBBBBBB
  %2**6&LUFXLWsXGJH7KLVFDVHLVEHIRUHWKHFRXUWXSRQ
WKH SHWLWLRQ RI 716 ,QF m716l RU mWKH &RPSDQ\l WR
UHYLHZ DQG WKH FURVVDSSOLFDWLRQ RI WKH 1DWLRQDO /DERU
5HODWLRQV %RDUG m1/5%l RU mWKH %RDUGl WR HQIRUFH DQ
1/5% RUGHU ILQGLQJ WKDW 716 EUHDFKHG REOLJDWLRQV XQGHU
6HFWLRQRIWKH1DWLRQDO/DERU5HODWLRQV$FWm1/5$l
86&DQGRUGHULQJ716WRUHLQVWDWHDQG
SD\ EDFN SD\ WR HPSOR\HHV DIIHFWHG E\ WKH &RPSDQ\jV
YLRODWLRQ  6HFWLRQ  SURWHFWV HPSOR\HHV ZKR WDNH MRE
DFWLRQGXHWRmDEQRUPDOO\GDQJHURXVlZRUNLQJFRQGLWLRQVDW
WKHLUSODFHRIHPSOR\PHQW,QDWWKHH[SLUDWLRQRIWKH
FROOHFWLYHEDUJDLQLQJDJUHHPHQWWKH\KDGZLWKWKH&RPSDQ\
HPSOR\HHVDW716jVsRQHVERUR7HQQHVVHHSODQWZDONHGRXW
1RV                   716,QFY1/5%         

FODLPLQJ   SURWHFWLRQ  :KHQ QHJRWLDWLRQV HYHQWXDOO\
IDLOHGWKH&RPSDQ\KLUHGSHUPDQHQWUHSODFHPHQWZRUNHUV
ZKHQWKHSUHYLRXVHPSOR\HHVODWHUVRXJKWUHLQVWDWHPHQWWKH
&RPSDQ\UHIXVHG
   $Q LQIUHTXHQWO\ XVHG SURYLVLRQ RI WKH 1/5$ WKH
DSSOLFDELOLW\VFRSHDQGSURWHFWLRQVDIIRUGHGWRZRUNHUVE\
DUHQRWIDFLDOO\FOHDU$VDUHVXOWWKH%RDUGLQWKH
FRXUVH RI WKLV FDVH KDV KDG WR HQJDJH LQ VHYHUDO DFWV RI
VWDWXWRU\LQWHUSUHWDWLRQWRFODULI\WKHPHDQLQJRIEHIRUH
LWFRXOGEHDSSOLHGWRWKLVVHWRIIDFWV+DYLQJGRQHVRWKH
%RDUGIRXQGWKDWGLGDSSO\WRWKHMREDFWLRQDQG
WKDW716KDGYLRODWHGE\KLULQJSHUPDQHQWUHSODFHPHQW
ZRUNHUVDQGUHIXVLQJWRUHLQVWDWHLWVSUHYLRXVHPSOR\HHV
   2Q DSSHDO 716 PDNHV VHYHUDO DUJXPHQWV LQ VXSSRUW RI
RYHUWXUQLQJWKH%RDUGGHFLVLRQLQFOXGLQJWKDWWKH%RDUG
HUUHGLQLQWHUSUHWLQJWRSURWHFWZRUNHUVZKRZHUHQRW
SURKLELWHGIURPVWULNLQJE\HLWKHUDVWDWXWRU\RUFRQWUDFWXDO
QRVWULNHSURYLVLRQWKDWWKH%RDUGHUUHGLQLQWHUSUHWLQJ
  WR UHTXLUH RQO\ D JRRG IDLWK EHOLHI LQ GDQJHURXV
FRQGLWLRQVVXSSRUWHGE\REMHFWLYHHYLGHQFHRQWKHSDUWRI
ZRUNHUV DV RSSRVHG WR D PRUH VWULQJHQW UHTXLUHPHQW WKDW
DEQRUPDOO\GDQJHURXVFRQGLWLRQVDFWXDOO\H[LVWWKDWWKH
%RDUGHUUHGLQLQWHUSUHWLQJWRSURKLELWFRPSDQLHVIURP
SHUPDQHQWO\UHSODFLQJZRUNHUVZKRWDNHMREDFWLRQSXUVXDQW
WRLWWKDWWKH%RDUGHUUHGLQLWVIDFWXDOGHWHUPLQDWLRQVWKDW
WKH716HPSOR\HHVEHOLHYHGLQJRRGIDLWKWKDWWKHLUZRUNLQJ
FRQGLWLRQVZHUHDEQRUPDOO\GDQJHURXVDQGWKDWWKHLUEHOLHI
ZDVDFRQWULEXWLQJFDXVHRIWKHZRUNVWRSSDJHWKDWWKH
%RDUGHUUHGLQILQGLQJREMHFWLYHHYLGHQFHRIDEQRUPDOGDQJHU
WR H[LVW LQ D SODQW UHJXODWHG PRQLWRUHG DQG SHUPLWWHG WR
FRQWLQXHRSHUDWLRQE\WKH1XFOHDU5HJXODWRU\&RPPLVVLRQ
DQGLWVVWDWHFRXQWHUSDUWDQGWKDWWKH%RDUGLQH[FXVDEO\
GHOD\HG WKH SURFHHGLQJV VXFK WKDW WKLV FRXUW VKRXOG QRW
HQIRUFHLWVDZDUG
  716jVDUJXPHQWVWRWKLVFRXUWFDQIDLUO\EHGLYLGHGLQWR
WKUHHFDWHJRULHV7KHILUVWWKUHHDUJXPHQWVDUHFKDOOHQJHVWR
WKH%RDUGjVDFWVRIVWDWXWRU\LQWHUSUHWDWLRQ7KHIRXUWKDQG
      716,QFY1/5%                   1RV      1RV             716,QFY1/5%   

ILIWK DUJXPHQWV DUH FKDOOHQJHV WR WKH %RDUGjV IDFWXDO          XQGHU   UDWKHU WKDQ UHPDQGLQJ LW IRU IXUWKHU
GHWHUPLQDWLRQV  7KH ILQDO DUJXPHQW LV DQ HTXLWDEOH RQH      FRQVLGHUDWLRQ
DVNLQJWKLVFRXUWWRUHIXVHWRHQIRUFHWKH%RDUGjVDZDUGGXH
WRWKH%RDUGjVGHOD\LQWKLVFDVH:HUHMHFW716jVVWDWXWRU\
LQWHUSUHWDWLRQDUJXPHQWVEHFDXVHWKH%RDUGjVFRQVWUXFWLRQVRI
  ZLWKVWDQG WKH GHIHUHQWLDO UHYLHZ ZH DUH ERXQG E\
6XSUHPH&RXUWSUHFHGHQWWRJLYHWKHP:HUHMHFWLQSDUWDQG
DFFHSWLQSDUW716jVFKDOOHQJHVWRWKH%RDUGjVIDFWILQGLQJ
:H DOVR DJUHH ZLWK 716jV LQH[FXVDEOH GHOD\ DUJXPHQW
$FFRUGLQJO\ZH9$&$7(WKH%RDUGjVGHFLVLRQ
                                  ,
  716 PDQXIDFWXUHV DUPRUSLHUFLQJ SURMHFWLOHV FDOOHG
mSHQHWUDWRUVl DW LWV SODQW LQ sRQHVERUR 7HQQHVVHH  7KH
SULQFLSDO LQJUHGLHQW LQ SHQHWUDWRUV LV GHSOHWHG XUDQLXP
m'8lDUDGLRDFWLYHVXEVWDQFHZLWKFDUFLQRJHQLFSURSHUWLHV
ZKHQLQKDOHGRULQJHVWHGRYHUORQJSHULRGVRIWLPH'8DOVR
PD\SRVHDWR[LFULVNWRWKHNLGQH\V
  7KH3DSHU$OOLHG,QGXVWULDO&KHPLFDODQG(QHUJ\:RUNHUV
8QLRQ WKH m8QLRQl UHSUHVHQWHG WKH HPSOR\HHV DW 716
'XULQJWKHUHOHYDQWWLPHDMRLQWPDQDJHPHQWODERUKHDOWKDQG
VDIHW\FRPPLWWHHXQGHUWRRNPRQWKO\LQVSHFWLRQVRIWKHSODQW
DQGUHSRUWHGYDULRXVSUREOHPVZLWKWKHOHYHOVRI'8GXVWWR
ZKLFKHPSOR\HHVZHUHH[SRVHGDQGZLWKWKHIXQFWLRQLQJRI
VDIHW\SURFHGXUHVDQGGHYLFHVLQWHQGHGWRNHHS'8H[SRVXUH
ORZ  2Q 0DUFK   DOOHJHGO\ LQ UHVSRQVH WR WKHVH
SUREOHPV DQG DOOHJHGO\ DIWHU WKH &RPSDQ\ KDG IDLOHG WR
UHFWLI\WKHPWKH8QLRQVHQWWKHIROORZLQJXOWLPDWXPWR716
    >(@PSOR\HHVZLOOQRWUHWXUQWRZRUNDIWHU$SULOXQWLO
    WKHWHUPVZKLFKDUHRQWKHKHDOWKDQGVDIHW\UHSRUWKDYH
    EHHQFRUUHFWHGDQG>WKH&RPSDQ\@LVVDIHDQGKHDOWK\IRU
    WKH HPSOR\HHV WR ZRUN  7KLV LQFOXGHV WKH LWHPV IURP
    SDVW LQVSHFWLRQV DV ZHOO DV LWHPV ZKLFK ZLOO EH OLVWHG
    GXULQJWKH$SULOLQVSHFWLRQ
  2Q 0DUFK   WKH 8QLRQ DQG 716 FRPPHQFHG
QHJRWLDWLRQV RYHU D QHZ FROOHFWLYH EDUJDLQLQJ DJUHHPHQW
,QLWLDOO\716PDGHDQRIIHULQFOXGLQJDZDJHLQFUHDVHDQ
    716,QFY1/5%                  1RV         1RV                      716,QFY1/5%            

&RPSDQ\@ RU JLYHQ WKH %RDUG RU XQLRQ DQ XQIDLU              H[WHQGHGOD\RIISHULRGDQH[WHQGHGSUREDWLRQDU\SHULRGIRU
DGYDQWDJHjl1/5%Y+XE3ODVWLFV)GWK              QHZZRUNHUVDQGUHWHQWLRQRIWKH&RPSDQ\jVH[LVWLQJKHDOWK
&LUTXRWLQJ1/5%Y0LFK5XEEHU3URGV,QF             DQGVDIHW\FODXVHLQWKHFRQWUDFWSURWHFWLQJKHDOWKFRQFHUQV
)G   WK &LU  VHH DOVR 1/5% Y 7D\ORU      7KH8QLRQUHVSRQGHGZLWKDOHQJWK\QHZKHDOWKDQGVDIHW\
0DFK3URGV)GWK&LUVDPH             FODXVHDSURSRVDOIRUQHZVDIHW\LQVSHFWLRQVDQGREMHFWLRQV
,QWKHSUHVHQWFDVH716VXEPLWVWKDWLWZRXOGEHSUHMXGLFHG           WRH[WHQGLQJWKHOD\RIIDQGSUREDWLRQDU\SHULRGVDPRQJRWKHU
E\WKH%RDUGjVGHFLVLRQLQWKDWWKHGHFLVLRQRUGHUVEDFNSD\          WKLQJV7KHUHZHUHHLJKWPRUHPHHWLQJVEHIRUHWKHFRQWUDFW
DQGUHLQVWDWHPHQW6LQFHWKLVFDVHGUDJJHGRQIRU\HDUV            H[SLUHGRQ0D\'XULQJWKHVHPHHWLQJVWKH8QLRQ
EHWZHHQILOLQJDQGWKH%RDUGjVVHFRQGGHFLVLRQWKHEDFNSD\           FODLPV LW ZDV FRQFHUQHG RQO\ ZLWK WKH VDIHW\ LVVXHV ZKLOH
WKDWWKH%RDUGRUGHUHGKDVSRWHQWLDOO\EHHQPRXQWLQJVLQFH             716FODLPVWKH8QLRQIRXJKWRYHUHFRQRPLFLVVXHV
WKHQ)XUWKHUWKH&RPSDQ\DOOHJHVWKDWLWVRSHUDWLRQVKDYHVR
FKDQJHG WKDW RUGHULQJ UHLQVWDWHPHQW RI ZRUNHUV ZRXOG EH           2Q0D\716HPSOR\HHVZKRZHUHPHPEHUVRIWKH
XQUHDOLVWLF                                                          8QLRQ EHJDQ D ZRUN VWRSSDJH DW WKH H[SLUDWLRQ RI WKHLU
                                                                       FROOHFWLYHEDUJDLQLQJDJUHHPHQW7KH8QLRQDOOHJHGWKDWWKH
  ,QDFDVHZLWKD%RDUGRUGHUHGUHPHG\VLPLODUWRWKLVRQH           ZRUN VWRSSDJH ZDV QRW D VWULNH DV GHILQHG E\ WKH 1/5$
WKH6HFRQG&LUFXLWPRGLILHGWKH%RDUGjVDZDUGRIEDFNSD\              EHFDXVHLWIHOOXQGHUWKHH[HPSWLRQIRUmTXLWWLQJRIODERU
DQGUHLQVWDWHPHQWEHFDXVH WKH FDVHKDGGUDJJHGRQIRUVL[            E\ DQ HPSOR\HH RU HPSOR\HHV LQ JRRG IDLWK EHFDXVH RI
\HDUVGXULQJZKLFKWLPHWKHEDFNSD\ILJXUHKDGPRXQWHGDQG           DEQRUPDOO\ GDQJHURXV FRQGLWLRQV IRU ZRUN DW WKH SODFH RI
WKHFRPSDQ\KDGFKDQJHGLWVLQWHUQDOVWUXFWXUHWRWKHH[WHQW           HPSOR\PHQWRIVXFKHPSOR\HHRUHPSOR\HHVl
WKDWUHLQVWDWHPHQWZDVXQUHDOLVWLF6HH2OLYHWWL2IILFH86$
,QFY1/5%)GG&LU.                       2QsXO\716QRWLILHGWKHHPSOR\HHVHQJDJHGLQ
                                                                       WKHZRUNVWRSSDJHWKDWLWZRXOGKLUHSHUPDQHQWUHSODFHPHQWV
   7KH%RDUGFRQWHQGVWKDWWKHUHZDVQRLQH[FXVDEOHGHOD\LQ          RQsXO\7KHHPSOR\HHVGLGQRWUHOHQW2Q)HEUXDU\
WKDWWKHFDVHSUHVHQWHGQRYHOLVVXHVSURGXFHGDYROXPLQRXV            WKH8QLRQPDGHDQXQFRQGLWLRQDORIIHUWRUHWXUQWR
UHFRUG DQG UHVXOWHG LQ D OHQJWK\ SDJH GHFLVLRQ E\ WKH     ZRUN RQ EHKDOI RI WKH HPSOR\HHV HQJDJHG LQ WKH ZRUN
$/s WZR FRPSUHKHQVLYH %RDUG GHFLVLRQV DQG D FRXUW RI         VWRSSDJH+RZHYHU716UHIXVHGWRUHLQVWDWHWKHHPSOR\HHV
DSSHDOVUHPDQGDVZHOODVWLPHVSHQWE\WKH%RDUGWU\LQJWR
UHDFK D VHWWOHPHQW EHWZHHQ WKH SDUWLHV  7KLV LV DOO WUXH
+RZHYHUWKHXQGLVSXWHGIDFWLVWKDWWKHFDVHZDVILOHGZLWK
WKH%RDUGLQ7KH%RDUGjV$/sGLGQRWLVVXHDGHFLVLRQ
XQWLO7KH%RDUGGLGQRWLVVXHLWVGHFLVLRQDIILUPLQJWKH            
                                                                            6HFWLRQ   86&    UHDGV
$/sXQWLOPRUHWKDQILYH\HDUVODWHU$IWHUUHPDQGE\               6DYLQJ SURYLVLRQ
WKH'LVWULFWRI&ROXPELD&LUFXLWLQWKH%RDUGGLGQRW                1RWKLQJ LQ WKLV $FW VKDOO EH FRQVWUXHG WR UHTXLUH DQ LQGLYLGXDO
LVVXH LWV VHFRQG GHFLVLRQ XQWLO 6HSWHPEHU  PRUH WKDQ          HPSOR\HH WR UHQGHU ODERU RU VHUYLFH ZLWKRXW KLV FRQVHQW QRU
IRXU\HDUVODWHU7KLVFRXUWGRHVQRWVHHDUHDVRQDEOHZD\WR             VKDOO DQ\WKLQJ LQ WKLV $FW EH FRQVWUXHG WR PDNH WKH TXLWWLQJ RI
KROGWKH&RPSDQ\UHVSRQVLEOHIRUGDPDJHVDFFUXLQJRYHUDOO                 KLV ODERU E\ DQ LQGLYLGXDO HPSOR\HH DQ LOOHJDO DFW QRU VKDOO DQ\

RI WKLV WLPH HVSHFLDOO\ ZKHQ LWV VWUXFWXUH DQG EXVLQHVV           FRXUW LVVXH DQ\ SURFHVV WR FRPSHO WKH SHUIRUPDQFH E\ DQ
                                                                           LQGLYLGXDO HPSOR\HH RI VXFK ODERU RU VHUYLFH ZLWKRXW KLV
FKDQJHG LQ WKH LQWHULP  $FFRUGLQJO\ ZH 9$&$7( WKH                FRQVHQW QRU VKDOO WKH TXLWWLQJ RI ODERU E\ DQ HPSOR\HH RU
%RDUGjVGHFLVLRQILQGLQJ716WRKDYHEUHDFKHGLWVREOLJDWLRQV              HPSOR\HHV LQ JRRG IDLWK EHFDXVH RI DEQRUPDOO\ GDQJHURXV
                                                                           FRQGLWLRQV IRU ZRUN DW WKH SODFH RI HPSOR\PHQW RI VXFK
                                                                           HPSOR\HH RU HPSOR\HHV EH GHHPHG D VWULNH XQGHU WKLV $FW
     716,QFY1/5%                  1RV        1RV                    716,QFY1/5%         

   2Q$XJXVWWKH8QLRQILOHGDFRPSODLQWZLWKWKH           8QLYHUVDO&DPHUD86DW,QWKHSUHVHQWFDVHWKUHH
1/5%DOOHJLQJWKDW716HQJDJHGLQXQIDLUODERUSUDFWLFHVE\          RIWKHIRXUSLHFHVRIHYLGHQFHUHOLHGXSRQE\WKH%RDUGDUH
KLULQJSHUPDQHQWUHSODFHPHQWZRUNHUVWRUHSODFHHPSOR\HHV             QRW WHUULEO\ SHUVXDVLYH DQG RQH SLHFH RI HYLGHQFH WKH
HQJDJHGLQWKHZRUNVWRSSDJHDQGWKHQUHIXVLQJWRUHLQVWDWH           UHVSLUDWRU XVH LV HLWKHU LUUHOHYDQW WR WKH GDQJHU LQTXLU\ RU
WKH8QLRQHPSOR\HHVDIWHUWKH8QLRQPDGHDQXQFRQGLWLRQDO             HYLGHQFHRILPSURYHGFRQGLWLRQV:KHQZHDOVRWDNHLQWR
RIIHUWRUHWXUQWRZRUN716ILOHGDPRWLRQWRGLVPLVVWKH           DFFRXQWWKH15&DQG7'5+VWDQGDUGVDQGWKRVHDJHQFLHVj
FRPSODLQWUHO\LQJRQWKHIDFWWKDWWKHFRPSODLQWDOOHJHGWKDW        ODFNRIGHFLVLYHUHJXODWRU\DFWLRQDVHYLGHQFHFRQWUDGLFWLQJ
WKHHPSOR\HHVZHUHHQJDJHGLQDZRUNVWRSSDJHEHFDXVHRI              WKDWHYLGHQFHLWEHFRPHVFOHDUWKDWWKH%RDUGjVFRQFOXVLRQo
WKHmJRRGIDLWKEHOLHIWKDWWKHLUFRQGLWLRQVIRUZRUNDWWKHLU        WKDWREMHFWLYHHYLGHQFHVXSSRUWHGWKHHPSOR\HHVjEHOLHIWKDW
SODFHRIHPSOR\PHQWZHUHDEQRUPDOO\GDQJHURXVlUDWKHUWKDQ            WKHLUZRUNSODFHKDGEHFRPHWRRGDQJHURXVWRZRUNLQoLV
IRUWKHUHDVRQDOOHJHGO\UHTXLUHGE\WKDWWKHHPSOR\HHV        VLPSO\QRWVXSSRUWHGE\VXEVWDQWLDOHYLGHQFHRQWKHUHFRUG
FHDVHGZRUNmLQJRRGIDLWKEHFDXVHFRQGLWLRQVIRUZRUNDW             FRQVLGHUHGDVDZKROH
WKHLUSODFHRIHPSOR\PHQWZHUHDEQRUPDOO\GDQJHURXVl,Q
RWKHUZRUGVWKH8QLRQDOOHJHGEHOLHIWKDWWKHFRQGLWLRQVZHUH                                ,QH[FXVDEOH'HOD\
GDQJHURXV UDWKHU WKDQ WKDW WKH FRQGLWLRQV ZHUH GDQJHURXV
sXGJH6FKOHVLQJHUDQ$GPLQLVWUDWLYH/DZsXGJHm$/slRI                6LQFH FRXUWV DUH WR EH GHIHUHQWLDO LQ UHYLHZLQJ DJHQF\
WKH 1/5% JUDQWHG D PRWLRQ WR DPHQG WKH FRPSODLQW RQ         GHWHUPLQDWLRQVGHQ\LQJHQIRUFHPHQWRIDQRUGHUVROHO\RQWKH
$XJXVW   DQG WKH 8QLRQ FKDQJHG LWV DOOHJDWLRQ         EDVLVRIGHOD\LVLQDSSURSULDWH6HHHJ1/5%Y,QWjO$VVjQ
DFFRUGLQJO\2Q$XJXVW716ILOHGZLWKWKH1/5%             RI%ULGJH6WUXFWXUDO	2UQDPHQWDO,URQZRUNHUV/RFDO
D UHTXHVW WR DSSHDO WKH JUDQWLQJ RI WKH PRWLRQ WR DPHQG    86SHUFXULDP1/5%Ys+5XWWHU
ZKLFKWKH1/5%UHMHFWHG                                              5H[0IJ&R867KLVLVEHFDXVH
                                                                      LQVLWXDWLRQVZKHUHWKHTXHVWLRQHGDZDUGZRXOGEHSD\PHQW
   $IWHU WKH DSSHDO DQRWKHU $/s sXGJH 6FKOHVLQJHU ZDV        RUDFWLRQLQIDYRURIWKHFRPSDQ\jVHPSOR\HHVmWKH%RDUGLV
UHFXVHGXQGHUWRRNDKHDULQJGHQRYRDVSHUWKH1/5%RUGHU          QRWUHTXLUHGWRSODFHWKHFRQVHTXHQFHVRILWVRZQGHOD\HYHQ
DQGIRXQG716OLDEOHIRUYLRODWLQJ
VUHTXLUHPHQWVLQDQ         LI LQRUGLQDWH XSRQ ZURQJHG HPSOR\HHV WR WKH EHQHILW RI
RSLQLRQGDWHGsXO\0RUHWKDQILYH\HDUVODWHURQ          ZURQJGRLQJHPSOR\HUVls+5XWWHU5H[0IJ&R86
'HFHPEHU   WKH %RDUG LVVXHG D 6XSSOHPHQWDO             DW
'HFLVLRQDQG2UGHUZKHUHLQWKUHHRXWRIIRXU%RDUGPHPEHUV
YRWHG WR UHYHUVH WKH $/s GLVPLVVLQJ DOO XQIDLU ODERU            6WLOOWKH$GPLQLVWUDWLYH3URFHGXUHV$FWKROGVm>Z@LWKGXH
DOOHJDWLRQV  6HH 716 ,QF DQG 2LO &KHP DQG $WRPLF        UHJDUGIRUWKHFRQYHQLHQFHDQGQHFHVVLW\RIWKHSDUWLHVRUWKHLU
:RUNHUV,QWjO8QLRQ1/5%+RZHYHU              UHSUHVHQWDWLYHV DQG ZLWKLQ D UHDVRQDEOH WLPH HDFK DJHQF\
WKH %RDUG ZDV IUDFWXUHG RQ WKH DQDO\VLV RI   DQG QR   VKDOOSURFHHGWRFRQFOXGHDPDWWHUSUHVHQWHGWRLWl86&
VLQJOHUHDVRQLQJFRPPDQGHGDPDMRULW\                                 E  HPSKDVLV DGGHG  $FFRUGLQJO\ FRXUWV
                                                                      VRPHWLPHVUHIXVHWRHQIRUFHDJHQF\DZDUGVZKHQXQGXHGHOD\
  7KH8QLRQDSSHDOHGDQGRQ)HEUXDU\WKH'&               KDV PDGH WKHLU HQIRUFHPHQW LQHTXLWDEOH  6HH HJ (PKDUW
&LUFXLWUHPDQGHGWKHFDVHWRWKH%RDUGVWDWLQJWKDWLWFRXOG         ,QGXV Y 1/5%  )G   G &LU 
QRWGLVFHUQD%RDUGSRVLWLRQDQGWKDWWKH%RDUGKDGIDLOHGWR        UHIXVLQJHQIRUFHPHQWDIWHUVL[\HDUGHOD\
DUWLFXODWHDQDSSURSULDWHOHJDOVWDQGDUGIRUWKHUHVROXWLRQRI
WKHFDVH7KHFRXUWKHOGWKDWm>W@KH%RDUGPXVWµDUWLFXODWHD           7KLVFLUFXLWKDVIROORZHGDUXOHXQGHUZKLFKLWZLOOHQIRUFH
PDMRULW\VXSSRUWHG VWDWHPHQW RI WKH UXOH WKDW >LW@ ZLOO EH    %RDUG GHFLVLRQV HYHQ LI GHOD\HG ZKHQ WKHUH LV mµQR
                                                                      DOOHJDWLRQ WKDW WKH GHOD\ KDV LQ DQ\ ZD\ SUHMXGLFHG >WKH
    716,QFY1/5%                 1RV        1RV                    716,QFY1/5%          

H[FHHGWKHQRQELQGLQJJXLGHOLQHVHWRXWE\WKH15&WKH\DUH        DSSO\LQJ QRZ DQG LQ WKH IXWXUHjl  2LO &KHP 	 $WRPLF
ZLWKLQ WKH VWDQGDUG SURPXOJDWHG E\ WKH 86 $UP\ DQG         :RUNHUV,QW
O8QLRQY1/5%)G'&&LU
DGRSWHGE\WKH7'5+DQGWKHUHLVQRHYLGHQFHLQWKHUHFRUG          TXRWLQJ8QLWHG)RRG	&RPPHUFLDO:RUNHUV,QW
O8QLRQY
WR VXJJHVW WKDW WKH $UP\ JXLGHOLQHV DUH QRW HTXDOO\ JRRG    1/5%)G'&&LU
PHDVXUHVRIVDIHW\
                                                                        0RUH WKDQ IRXU \HDUV ODWHU RQ 6HSWHPEHU   WKH
  6RLQRWKHUZRUGVWKHSLHFHVRIHYLGHQFHUHOLHGXSRQE\          %RDUGLVVXHGLWV6HFRQG6XSSOHPHQWDO'HFLVLRQDQG2UGHU
WKH%RDUGDVSURYLGLQJREMHFWLYHHYLGHQFHWRVXSSRUWWKH716          1/5% 1R  UHDFKLQJ D GHFLVLRQ FRQWUDU\ WR LWV
HPSOR\HHVj EHOLHI WKDW WKHLU ZRUNSODFH ZDV DEQRUPDOO\          HDUOLHUSRVLWLRQ7KHVHFRQGGHFLVLRQIRXQGDSSOLFDEOH
GDQJHURXVPHUHO\VKRZWKDW716KDGODUJHO\FRPSOLHGZLWK             WRWKHMREDFWLRQDQGLWIRXQGWKDW716KDGHQJDJHGLQXQIDLU
UHJXODWRU\OLPLWVVHWZLWKDFRQVLGHUDEOHPDUJLQIRUVDIHW\         ODERUSUDFWLFHVE\KLULQJSHUPDQHQWUHSODFHPHQWZRUNHUVDQG
                                                                     UHIXVLQJWRUHKLUHWKHHPSOR\HHVLQYROYHG,QILQGLQJ
   $VZHH[SODLQHGDERYHDODFNRIHPHUJHQF\DFWLRQE\WKH          DSSOLFDEOHWRWKHSUHVHQWFDVHWKHGHFLVLRQVHWXSDQHZIRXU
15&RULWVVWDWHFRXQWHUSDUWGRHVQRWSURKLELWDVDPDWWHURI       SDUWWHVWIRUGHWHUPLQLQJWKHDSSOLFDELOLW\RILQFDVHV
ODZ DQ 1/5% ILQGLQJ WKDW REMHFWLYH HYLGHQFH H[LVWHG WR      LQYROYLQJFXPXODWLYHVORZDFWLQJGDQJHUVWRHPSOR\HHKHDOWK
VXSSRUWWKHHPSOR\HHVjEHOLHIWKDWWKHLUZRUNSODFHZDVWRR           DQGVDIHW\
GDQJHURXV WR ZRUN LQ  +RZHYHU DW WKH VDPH WLPH WKH
H[LVWHQFHRIUHJXODWRU\RYHUVLJKWWKHSRZHURIWKHUHJXODWRU          7KH *HQHUDO &RXQVHO PXVW GHPRQVWUDWH E\ D
WRWDNHHPHUJHQF\UHPHGLDODFWLRQDQGWKHGHFLVLRQQRWWRGR          SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW WKH HPSOR\HHV
VR PXVW FRXQW IRU VRPHWKLQJ  ,Q WKH VDPH ZD\ FRQFUHWH      EHOLHYHGLQJRRGIDLWKWKDWWKHLUZRUNLQJFRQGLWLRQVZHUH
KHDOWK PHDVXUHPHQWV ZLWKLQ WKH OLPLWV SURPXOJDWHG RU             DEQRUPDOO\ GDQJHURXV WKDW WKHLU EHOLHI ZDV D
DGRSWHGE\WKRVHDJHQFLHVDOVRPXVWFRXQW7KH1/5%LVQRW            FRQWULEXWLQJ FDXVH RI WKH ZRUN VWRSSDJH WKDW WKH
IUHHWRGLVFRXQWWKHVHIDFWVFRPSOHWHO\DQGILQGHYLGHQFHRI           HPSOR\HHVjEHOLHILVVXSSRUWHGE\DVFHUWDLQDEOHREMHFWLYH
DEQRUPDOGDQJHULQWKHIDFHRIWKHPZLWKRXWIXUWKHUVXSSRUW           HYLGHQFH DQG WKDW WKH SHUFHLYHG GDQJHU SRVHG DQ
)RULQVWDQFHWKHUHFRXOGEHHJUHJLRXVHYLGHQFHVLPSO\QRW             LPPHGLDWHWKUHDWRIKDUPWRHPSOR\HHKHDOWKRUVDIHW\
DGGUHVVHG RU XQGHUVWRRG E\ WKH UHJXODWRU RU WKH UHJXODWRU
FRXOGKDYHEHHQPRYLQJWRRVORZO\IRUWKHFLUFXPVWDQFHVRU          716,QFDQG2LO&KHPDQG$WRPLF:RUNHUV,QWjO8QLRQ
LWFRXOGEHWKDWWKHUHJXODWRUZDVQRWIXOO\DSSULVHGRIRULQ        1/5% 1R   :/  DW  6HSW 
FRQWURORIWKHVLWXDWLRQ1RQDFWLRQE\WKHUHOHYDQWUHJXODWRU      $VPHQWLRQHGDERYHWKHGHFLVLRQRUGHUHGWKDW716
LVFHUWDLQO\QRWLSVRIDFWRSURRIRIDODFNRIDEQRUPDOGDQJHU      UHLQVWDWHDQGSURYLGHEDFNSD\ WRWKHHPSOR\HHVZKRWRRN
EXWLWPXVWZHLJKDJDLQVWDILQGLQJWKDWWKHHPSOR\HHVjEHOLHI       SDUW LQ WKH ZRUN VWRSSDJH  ,W LV IURP WKLV RUGHU WKDW 716
WKDW WKHLU ZRUNSODFH ZDV WRR GDQJHURXV WR ZRUN LQ ZDV       DSSHDOVWRWKLVFRXUWDQGLWLVWKLVRUGHUWKDWWKH%RDUGDVNV
VXSSRUWHGE\REMHFWLYHSURRI                                      WKLVFRXUWWRHQIRUFH
  $VPHQWLRQHGDERYHWKH6XSUHPH&RXUWKDVLQVWUXFWHGWKDW                                           ,,
ZKHQ UHYLHZLQJ IDFWILQGLQJ E\ WKH %RDUG FRXUWV DUH WR
GHWHUPLQH ZKHWKHU WKH ILQGLQJV RI IDFW DUH VXSSRUWHG E\              716jV&KDOOHQJHVWRWKH%RDUGjV6WDWXWRU\
VXEVWDQWLDOHYLGHQFHE\WDNLQJLQWRDFFRXQWWKHHYLGHQFHXSRQ                             ,QWHUSUHWDWLRQ
ZKLFK WKH %RDUG UHOLHV DQG mFRQWUDGLFWRU\ HYLGHQFH RU
HYLGHQFHIURPZKLFKFRQIOLFWLQJLQIHUHQFHVFRXOGEHGUDZQl            :HILUVWDGGUHVV716jVFKDOOHQJHVWRWKH%RDUGjVYDULRXV
                                                                     DFWV RI VWDWXWRU\ LQWHUSUHWDWLRQ  ,Q UHYLHZLQJ 1/5%
     716,QFY1/5%                  1RV        1RV                   716,QFY1/5%        

LQWHUSUHWDWLRQVRIWKH1/5$WKLVFRXUWIROORZVWKHVWDQGDUG          SXEOLVKHG E\ WKH 8QLWHG 6WDWHV $UP\ IRU WHVWLQJ XUDQLXP
VHW RXW E\ WKH 6XSUHPH &RXUW LQ &KHYURQ 86$ ,QF Y      OHYHOVLQHPSOR\HHVjNLGQH\VWKH'$5&20VWDQGDUG7KH
1DWXUDO5HVRXUFHV'HIHQVH&RXQFLO,QF86           '$5&20 PDQXDO VHW D mQRWLFHl OHYHO RI  XJO DQG DQ
6HH1/5%Y:HEFRU3DFNDJLQJ)G              mDFWLRQlOHYHORIXJO$JDLQWKHUHZDVDJUHDWGHDORI
 WK &LU  DSSO\LQJ &KHYURQ WR 1/5%                 GLVFXVVLRQLQWKHUHFRUGLQWKLVFDVHDERXWYDU\LQJUHVXOWVDW
LQWHUSUHWDWLRQVRIWKH1/5$+ROO\)DUPV&RUSY1/5%              YDU\LQJWLPHVKRZHYHUERWKSDUWLHVDQGWKH%RDUGDJUHHZLWK
86DSSO\LQJ&KHYURQWRD%RDUG              WKH FRQFOXVLRQ RI WKH 1,26+ UHSRUW WKDW IURP 
GHFLVLRQ8QGHUWKLVVWDQGDUGWKHFRXUWILUVWDVNVmZKHWKHU         RI 716 HPSOR\HHV KDG RQH RU PRUH XULQH VDPSOHV
&RQJUHVVKDVGLUHFWO\VSRNHQWRWKHSUHFLVHTXHVWLRQDWLVVXHl       JUHDWHUWKDQWKH'$5&20QRWLFHOHYHORIXJODQG
&KHYURQ86DW,IVRWKHFRXUWPXVWJLYHHIIHFWWR       KDGRQHRUPRUHVDPSOHVDERYHWKHDFWLRQOHYHORIXJO
&RQJUHVVjV LQWHUSUHWDWLRQ  ,G DW   +RZHYHU LI       7KH 1,26+ UHSRUW GLG QRW VHW IRUWK VWDWLVWLFV LOOXVWUDWLQJ
&RQJUHVVKDVQRWFOHDUO\VSRNHQWRDTXHVWLRQWKLVFRXUWLV          ZKHWKHUDQ\HPSOR\HHVKDGXUDQLXPLQXULQHFRQFHQWUDWLRQV
OLPLWHGWRGHWHUPLQLQJmZKHWKHUWKHDJHQF\jVDQVZHULVEDVHG          DW RU DERYH WKH GDQJHU OHYHO RI  XJO VHW E\ WKH 15&
RQ D SHUPLVVLEOH FRQVWUXFWLRQ RI WKH VWDWXWHl ,G DW    JXLGHOLQH+RZHYHUWKHUHSRUWVXPPDULO\VWDWHGWKDWmXULQH
$FFRUG+ROO\)DUPV86DW,QDSSO\LQJWKLV             XUDQLXP FRQFHQWUDWLRQV H[FHHGHG 15& JXLGHOLQHV IRU
mSHUPLVVLEOHFRQVWUXFWLRQlVWDQGDUGWKLVFRXUWPXVWXSKROG           ELRDVVD\ DW XUDQLXP PLOOV EXW QRW WKH OHVV VWULQJHQW
WKH%RDUGFRQVWUXFWLRQLILWLVmSHUPLVVLEOHlDQGmUHDVRQDEOHl       >'$5&20@VWDQGDUGVHQIRUFHGE\WKHVWDWHl6RMXVWDVZLWK
HYHQLILWLVQRWWKHRQO\FRQVWUXFWLRQWKH%RDUGPLJKWKDYH          WKH ZKROH ERG\ H[SRVXUH GDWD WKH XUDQLXPLQXULQH GDWD
DGRSWHGDQGHYHQLILWLVQRWWKHRQHWKDWWKLVFRXUWZRXOGKDYH      UHOLHGXSRQE\WKH%RDUGDVSURYLGLQJREMHFWLYHHYLGHQFHWR
DGRSWHGLIIDFHGZLWKWKHTXHVWLRQGHQRYR&KHYURQ             VXSSRUW WKH HPSOR\HHVj EHOLHI WKDW WKHLU ZRUNSODFH ZDV
86DWDQGQ                                              DEQRUPDOO\GDQJHURXVFRQVLVWHGRIVFLHQWLILFPHDVXUHPHQWV
                                                                      ZLWKLQWKHOLPLWVVHWE\WKHUHOHYDQWQXFOHDUUHJXODWRU\DJHQF\
   :KHWKHUWKH%RDUGHUUHGLQLQWHUSUHWLQJWRDSSO\
     LQVLWXDWLRQVZKHUHWKHUHLVQRmQRVWULNHlSURYLVLRQ               7KHVH IDFWV DUH LPSRUWDQW QRW EHFDXVH WKH\ VKRZ 716
                                                                      FRPSO\LQJZLWKUHJXODWRU\UXOHVEXWEHFDXVHWKHOLPLWVDVVHW
   716ILUVWDUJXHVWKDWGRHVQRWDSSO\WRWKLVVLWXDWLRQ       E\WKH15&DQGDGRSWHGE\WKH7'5+DUHHVWDEOLVKHGZLWKD
DW DOO EHFDXVH   RQO\ DSSOLHV WR VLWXDWLRQV ZKHUH       FRQVLGHUDEOHPDUJLQIRUVDIHW\VXFKWKDWZKHQFRPSOLHGZLWK
HPSOR\HHVDUHERXQGE\HLWKHUDFRQWUDFWXDORULPSOLHGmQR           QRLQMXU\ZRXOGEHH[SHFWHGLQWKHH[SRVHGZRUNIRUFH6HH
VWULNHlSURYLVLRQ$FFRUGLQJO\716FRQWHQGVWKDWWKH%RDUG          sRKQVRQY8QLWHG6WDWHV)6XSS'.DQ
HUUHGLQLQWHUSUHWLQJWRFRYHUVLWXDWLRQVoVXFKDVWKH           $V WKH 15& LWVHOI KDV H[SODLQHG LWV GRVH OLPLWV
SUHVHQWFDVHoZKHUHWKHUHOHYDQWHPSOR\HHVDUHQRWERXQGE\          LQFRUSRUDWH D mVLJQLILFDQW VDIHW\ IDFWRUl VR WKDW VXEVWDQWLDO
VXFKDSURYLVLRQ7KHUHLVERWKFDVHODZDQGORJLFDOVXSSRUW         LQMXU\RUGDPDJHVKRXOGQRWRFFXUXQOHVVH[SRVXUHH[FHHGV
IRUWKHDUJXPHQWWKDWVKRXOGDSSO\RQO\WRVLWXDWLRQV           WKRVH OLPLWV E\ D mVLJQLILFDQW PXOWLSOHl   &)5
LQYROYLQJDmQRVWULNHlSURYLVLRQWKHUHE\PDNLQJLWDGLIILFXOW      E,QGHHGHYHQWKH$/sUHFRJQL]HGWKH
TXHVWLRQKRZHYHUVLQFHWKHUHLVDOVRVXSSRUWIRUWKH%RDUGjV        YDOXH RI UHIHUHQFH WR WKH OLPLWV VHW RXW E\ WKH UHJXODWRU\
LQWHUSUHWDWLRQ DQG EHFDXVH ZH DUH WR UHYLHZ WKH %RDUGjV      DJHQFLHV6KHZURWHm,FDQFRQFHLYHRIQRPRUHREMHFWLYH
VWDWXWRU\ LQWHUSUHWDWLRQV XQGHU WKH GHIHUHQWLDO &KHYURQ          PHDQVWRDVVHVVZKHWKHUWKH716HPSOR\HHVZHUHVXEMHFWHG
VWDQGDUGZHPXVWDIILUPWKH%RDUGjVLQWHUSUHWDWLRQ                  WRDEQRUPDOGDQJHUVWKDQWRH[DPLQHWKHHYLGHQFHLQWKLVFDVH
                                                                      LQOLJKWRIWKHDGPLQLVWUDWLYHVWDQGDUGVl7161/5%
                                                                      DW:KLOHWKHXULQHVDPSOHVSRLQWHGWRE\WKH%RDUG
       716,QFY1/5%                 1RV          1RV                    716,QFY1/5%         

  LQRWKHUSDUWVRIWKHXUDQLXPIXHOF\FOHDQGRWKHU86                    716FLWHVVHYHUDOFDVHVDVVXSSRUWIRUWKHSURSRVLWLRQWKDW
  QXFOHDULQGXVWULHVl                                                    DSSOLHVRQO\LQWKHFRQWH[WRIDmQRVWULNHlSURYLVLRQ
                                                                          6HHHJ:KLUOSRRO&RUSY0DUVKDOO86Q
,GDW7KH7'5+KDGDGRSWHG15&UHJXODWLRQVVWDWLQJ                WKHmHIIHFWRIWKLVVHFWLRQLVWRFUHDWHDQH[FHSWLRQWR
WKDWH[WHUQDOH[SRVXUHWRUDGLDWLRQZDVQRWWRH[FHHGUHPV              DQRVWULNHREOLJDWLRQLQDFROOHFWLYHEDUJDLQLQJDJUHHPHQWl
SHU\HDU7KHUHIRUHDFFRUGLQJWRWKH%RDUGjVUHDGLQJRIWKH             *DWHZD\&RDO&RY8QLWHG0LQH:RUNHUVRI$PHULFD
IDFWV716jVZRUNHUVoZKLOHDSSDUHQWO\UHFHLYLQJKLJKHUWKDQ             86    m7KLV VHFWLRQ SURYLGHV D OLPLWHG
DYHUDJHH[SRVXUHIRU8QLWHG6WDWHVQXFOHDULQGXVWULHVoGLG               H[FHSWLRQ WR DQ H[SUHVV RU LPSOLHG QRVWULNH REOLJDWLRQl
QRW UHFHLYH UDGLDWLRQ H[SRVXUH DERYH WKDW SHUPLWWHG E\             WKHUHE\LQVXODWLQJSDUWLFLSDQWVIURPLQMXQFWLRQVOLDELOLW\IRU
15&7'5+UHJXODWLRQV                                                  GDPDJHV RU WHUPLQDWLRQ ZKHQ D FHVVDWLRQ RI ZRUN LV
                                                                          QHFHVVDU\mWRSURWHFWHPSOR\HHVIURPLPPHGLDWHGDQJHUl
   )LQDOO\WKH%RDUGPHQWLRQHGWKHXUDQLXPLQXULQHOHYHOVRI            3ODLQ'HDOHU3XEOjJ&RY&OHYHODQG7\SRJUDSKLFDO8QLRQ
716jVHPSOR\HHV6LQFHWKH'8XVHGLQWKHPDQXIDFWXULQJ                  1R   )G   WK &LU  m7KLV
SURFHVV DW 716jV IDFLOLW\ LV ERWK D ORZOHYHO UDGLRDFWLYH         UHFRJQLWLRQ RI D ULJKW WR UHIXVH WR ZRUN SURYLGHV D OLPLWHG
PDWHULDODQGDWR[LFKHDY\PHWDOWKH7'5+PRQLWRUHGVDIHW\               H[FHSWLRQ WR DQ H[SUHVV RU LPSOLHG QRVWULNH REOLJDWLRQl
OHYHOVDWWKHSODQWZLWKUHVSHFWWRH[SRVXUHWRUDGLDWLRQDQG             FLWLQJ*DWHZD\&RDO1/5%Y7DPDUD)RRGV,QF
LQWDNH RI XUDQLXP  7KHUH ZDV QR 15& UHJXODWLRQ RQ               )GWK&LUILQGLQJLQDSSOLFDEOH
SHUPLVVLEOHXUDQLXPOHYHOVLQHPSOR\HHVjNLGQH\VWKHUHZDV               LQ D FDVH ZKHUH WKHUH ZDV QR FROOHFWLYH EDUJDLQLQJ
RQO\ D QRQELQGLQJ JXLGHOLQH WKH XVHIXOQHVV RI ZKLFK WKH         DJUHHPHQW .QLJKW 0RUOH\ &RUS  1/5%  
SDUWLHVGLVSXWH7KH15&JXLGHOLQHVWDWHGWKDWZRUNHUVIDFH              HQIRUFHG)GWK&LUKROGLQJWKDW
Dm>S@RVVLELOLW\RINLGQH\GDPDJHlLIDQ\VLQJOHXULQHVDPSOH             
VSXUSRVHZDVWRJLYHHPSOR\HHVDULJKWWRZDONRIIWKH
VKRZVJUHDWHUWKDQPLFURJUDPVRIXUDQLXPSHUOLWHURI                 MREEHFDXVHRIDEQRUPDOO\GDQJHURXVFRQGLWLRQVmHYHQLQWKH
XULQHXJO6HH15&5HJ*XLGH7KHJXLGHOLQH             IDFHRIDQRVWULNHFODXVHLQWKHLUFRQWUDFWZLWKDQHPSOR\HUl
VHWDmQRWLFHlOHYHORIXJODQGDQmDFWLRQlOHYHORIXJO
7KHmQRWLFHlOHYHOLVHVVHQWLDOO\DQDODUPVLJQDODWZKLFKWKH              )XUWKHUWKHUHLVORJLFDOVXSSRUWIRUWKHLGHDWKDWRQO\
FDXVHRIWKHHOHYDWHGVDPSOHVKRXOGEHLQYHVWLJDWHGZKHQWKH             DSSOLHVZKHQHPSOR\HHVDUHIDFHGZLWKHLWKHUDFRQWUDFWXDORU
mDFWLRQlOHYHOLVUHDFKHGWKHHPSOR\HHLVWREHUHPRYHGIURP             LPSOLHGmQRVWULNHlSURYLVLRQ,IZHUHVRLQWHUSUHWHG
KLVRUKHUZRUNDUHDXQWLOWKHLUXUDQLXPLQXULQHOHYHOIDOOV            WKH VHFWLRQ ZRXOG H[HPSW ZRUNHUV ZKR TXLW ZRUN RXW RI
                                                                          FRQFHUQ IRU WKHLU VDIHW\ IURP WKH LQMXQFWLRQV DQG GDPDJH
 +RZHYHU WKH JXLGHOLQH KDG QHYHU EHHQ DGRSWHG E\ WKH             DFWLRQVWKDWXVXDOO\IROORZZRUNVWRSSDJHVLQFRQWUDYHQWLRQ
15& DQG WKH 7'5+ XVHG WKH PRUH SHUPLVVLYH VWDQGDUG               RIWKHVHSURYLVLRQV2QHPLJKWDUJXHWKDWDQHPSOR\HHQRWVR
                                                                          FRQVWUDLQHGLVIUHHWRPDNHDGHFLVLRQDVWRZKHWKHUKHZDQWV
                                                                          WRZRUNLQDSRWHQWLDOO\GDQJHURXVVLWXDWLRQZLWKRXWWKHWKUHDW
     
      ,Q VR FRQFOXGLQJ WKH %RDUG IRFXVHG RQ DYHUDJH ZKROH ERG\           RIDQLQMXQFWLRQRUGDPDJHDFWLRQDQGVRKHLVQRWLQQHHGRI
XUDQLXP OHYHOV +RZHYHU WKH 1,26+ UHSRUW UHFRJQL]HG WKDW LQGLYLGXDO      WKHSURWHFWLRQVRI
H[SRVXUH OHYHOV ZHUH D PRUH DFFXUDWH FRQVLGHUDWLRQ $ UHYLHZ RI WKH
1,26+ UHSRUW XSRQ ZKLFK WKH %RDUG EDVHG LWV IDFWXDO FRQFOXVLRQV UHYHDOV     +RZHYHU DV ERWK VLGHV DGPLW WKHUH LV QRWKLQJ LQ WKH
WKDW RQH 716 ZRUNHU LQ  DQG WZR ZRUNHUV LQ  KDG ZKROH ERG\
H[SRVXUHV HTXDO WR RU JUHDWHU WKDQ  UHPV +RZHYHU DFFRUGLQJ WR WKH
                                                                          OHJLVODWLYHKLVWRU\RIHLWKHURUWKH1/5$PRUHJHQHUDOO\
UHSRUW QR 716 ZRUNHU ZDV H[SRVHG WR  UHPV RU PRUH DIWHU            WKDWDGGUHVVHVmQRVWULNHSURYLVLRQVl$VH[SODLQHGDERYHLQ
7KHUHIRUH DFFRUGLQJ WR WKH 1,26+ UHSRUW 716 ZDV LQ FRPSOHWH             WKHDEVHQFHRIDQH[SUHVVFRQJUHVVLRQDOLPSHUDWLYHRQHZD\
UHJXODWRU\ FRPSOLDQFH LQ WKLV UHJDUG
    716,QFY1/5%                   1RV         1RV                   716,QFY1/5%        

RU WKH RWKHU WKH &KHYURQ VWDQGDUG VHUYHV WR SURWHFW WKH       (QJLQHHULQJFRQWUROVVXFKDVYHQWLODWLRQHTXLSPHQWVKRXOG
%RDUGjV LQWHUSUHWDWLRQ DV ORQJ DV LW LV mUHDVRQDEOHl  6HH     NHHSWKHDPRXQWRI'8GXVWLQWKHDLUEHORZ03&,QWKH
&KHYURQ86DW,QWKLVFDVHWKH%RDUGKDVD             HYHQW WKDW WKHVH FRQWUROV ZHUH LQHIIHFWLYH DW NHHSLQJ GXVW
UHDVRQDEOHDQVZHUWRDOPRVWDOORIWKHVXSSRUWFLWHGE\716            EHORZ 03& 7'5+ UHJXODWLRQV FDOOHG IRU WKH XVH RI
)LUVW DOO RI WKH FDVHV GLVFXVVLQJ WKH LVVXH H[FHSW 7DPDUD    UHVSLUDWRUV WR NHHS WKH GXVW RXW RI HPSOR\HHVj OXQJV  ,Q
)RRGV)GDWZHUHGHDOLQJZLWKVLWXDWLRQVZKHUH             sDQXDU\716KDGLQVWLWXWHGDSURJUDPRIUHVSLUDWRUXVH
HLWKHU DQ H[SUHVV RU LPSOLHG mQRVWULNHl SURYLVLRQ ZDV LQ       IRU DUHDV RI LWV SODQW ZLWK H[FHVVLYH GXVW OHYHOV  1HZ
HIIHFW,WLVDGLIIHUHQWWKLQJWRVD\WKDWLVDQH[HPSWLRQ      HTXLSPHQWWRUHGXFHGXVWOHYHOVLQWKHDLUKDGEHHQRUGHUHG
WRmQRVWULNHlSURYLVLRQVZKHQWKHUHLVDQRVWULNHSURYLVLRQ           DQGWKHYHQWLODWRUSURJUDPZDVVHWWRFRQWLQXHXQWLO$XJXVW
WKDQLWLVWRVD\WKDWDSSOLHVRQO\ZKHQWKHUHLVDmQR           ZKHQ WKDW HTXLSPHQW ZRXOG EH LQVWDOOHG  7KH $/s
VWULNHl SURYLVLRQ  7KH RQO\ FDVH WKDW HYHQ DUJXDEO\ VD\V      GLVFXVVHG DW OHQJWK 716jV YHQWLODWRU XVH QRWLQJ OLNHO\
mRQO\l LV WKH (LJKWK &LUFXLWjV 7DPDUD )RRGV GHFLVLRQ            YLRODWLRQV RI 7'5+ YHQWLODWRU SROLFLHV DQG WKH GLVFRPIRUW
+RZHYHU WKLV FDVH LV GLVWLQJXLVKDEOH LQ WKDW DOWKRXJK LW      H[SHULHQFHGE\HPSOR\HHVIRUFHGWRZHDUWKHP6HH716
GLVFXVVHV QRVWULNH FODXVHV DQG   LW DFWXDOO\ ILQGV WKH   1/5% DW  WKH $/s GHFLVLRQ LV UHSULQWHG LQ WKH
VHFWLRQ LQDSSOLFDEOH EHFDXVH WKHUH ZDV QR mFROOHFWLYH             %RDUGjVILUVW716GHFLVLRQEHJLQQLQJDW+RZHYHUWKH
EDUJDLQLQJDJUHHPHQWlQRWEHFDXVHWKHUHZDVQRmQRVWULNHl             XVHRIYHQWLODWRUVLVEHWWHUUHDGDVDUHVSRQVHWRSRWHQWLDOO\
FODXVH,ELG)XUWKHU7DPDUD)RRGVPHUHO\TXRWHVZLWKRXW             GDQJHURXVFRQGLWLRQVUDWKHUWKDQDGDQJHURXVFRQGLWLRQLWVHOI
GLVFXVVLRQWKHODQJXDJHRI:KLUOSRROVXJJHVWLQJWKDWLV           LQWKLVZD\716jVYHQWLODWRUSROLF\LVHLWKHUXQUHODWHGWRRU
DQ H[FHSWLRQ WR D QRVWULNH SURYLVLRQ ZKLFK DV DOUHDG\        DQDPHOLRUDWLRQRIDSRWHQWLDOO\GDQJHURXVFRQGLWLRQIDFLQJ
PHQWLRQHGPDNHVLWVDVVHUWLRQLQDFDVHZKHUHDmQRVWULNHl            WKHHPSOR\HHV
SURYLVLRQZDVLQHIIHFW,ELG
                                                                          7KHUHIRUHERWKDLUERUQHGXVWOHYHOVDQGYHQWLODWRUXVHDUH
   )URP D ORJLFDO VWDQGSRLQW WKHUH LV DOVR DQ DUJXPHQW         RQO\ WDQJHQWLDO WR WKH UHDO IRFXV RI WKH %RDUGjV LQTXLU\ o
IDYRULQJ WKH %RDUGjV SRVLWLRQ  ,I   LV LQWHUSUHWHG WR    REMHFWLYHHYLGHQFHRIGDQJHUWRWKHHPSOR\HHVjKHDOWK7KH
SURYLGHMRESURWHFWLRQWRHPSOR\HHVHQJDJHGLQDSURWHFWHG              WKLUG IDFWRU XQGHUO\LQJ WKH $/s DQG %RDUG GHFLVLRQV WKH
ZRUN VWRSSDJH LW ZRXOG VHHP VRPHZKDW DQRPDORXV WR               FRQWHQWLRQ WKDW DYHUDJH ZKROH ERG\ XUDQLXP H[SRVXUHV DW
SURYLGHWKLVSURWHFWLRQWRXQLRQL]HGHPSOR\HHVVXEMHFWWRD             716ZHUHJUHDWHUWKDQW\SLFDOIRUWKHQXFOHDULQGXVWU\VSHDNV
FROOHFWLYH EDUJDLQLQJ DJUHHPHQW WKDW LQFOXGHV D QRVWULNH         GLUHFWO\WRHPSOR\HHKHDOWKFRQFHUQV7KH%RDUGVXPPDUL]HG
FODXVHEXWGHQ\LWWRXQLRQL]HGHPSOR\HHVQRWZRUNLQJXQGHU             WKHEDVLVIRUWKLVIDFWRULQLWVILUVW716GHFLVLRQ7KH%RDUG
VXFK D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW DQG WR DOO QRQ          H[SODLQHGWKDWWKH7'5+FDOOHGLQWKH1DWLRQDO,QVWLWXWHRI
XQLRQL]HGHPSOR\HHV)XUWKHUZKLOHLWLVWUXHWKDWVHYHUDO            2FFXSDWLRQDO6DIHW\DQG+HDOWK1,26+WRLQYHVWLJDWHWKH
DGPLQLVWUDWLYHODZMXGJHVKDYHKHOGWREHOLPLWHGLQWKLV         716 IDFLOLW\ LQ ODWH  DQG TXRWHG IURP WKH UHVXOWDQW
ZD\XSXQWLOQRZWKH%RDUGKDVH[SUHVVO\UHVHUYHGUXOLQJRQ            1,26+UHSRUWLQQRWLQJ
WKHLVVXH6HH%HNHU,QGXVWULHV&RUS1/5%
Q*LEUDOWDU6WHHO&RUS1/5%                1,26+ IRXQG WKDW mZKROH ERG\ GRVHV IRU SURGXFWLRQ
Q1RZKRZHYHUWKH%RDUGKDVVRUXOHGDQGWKLV                ZRUNHUV IURP  WR  UDQJHG IURP  UHPV WR
FRXUWLVERXQGWRXSKROGLWVGHWHUPLQDWLRQXQGHUWKH&KHYURQ              UHPVlZLWKQRQHKDYLQJmHYHUH[FHHGHGUHPVSHU
VWDQGDUGRIUHYLHZEHFDXVH&RQJUHVVKDVQRWVSRNHQRQWKH                \HDUZKROHERG\GRVHlVLQFH1,26+FRQFOXGHG
LVVXHDQGWKH%RDUGjVLQWHUSUHWDWLRQLVUHDVRQDEOH                       WKDW WKHVH GRVHV mZKLOH IRU WKH PRVW SDUW ZLWKLQ OHJDO
                                                                          OLPLWVZHUHKLJKHUWKDQGRVHVREVHUYHGDPRQJZRUNHUV
    716,QFY1/5%                1RV        1RV                   716,QFY1/5%       

WKHUHFRUG+RZHYHULQILQGLQJWKDWLWVWKLUGUHTXLUHPHQWZDV        :KHWKHUWKH%RDUGHUUHGLQLQWHUSUHWLQJWRUHTXLUH
IXOILOOHGQDPHO\WKDWREMHFWLYHHYLGHQFHVXSSRUWHGWKH716              RQO\DJRRGIDLWKEHOLHIRQWKHSDUWRIWKHHPSOR\HHVWKDW
HPSOR\HHVj JRRG IDLWK EHOLHI WKDW WKHLU ZRUNSODFH ZDV             DEQRUPDOO\ GDQJHURXV FRQGLWLRQV H[LVW DV RSSRVHG WR
DEQRUPDOO\ GDQJHURXV WKH %RDUG PHUHO\ FLWHG ZLWKRXW               UHTXLULQJWKDWDEQRUPDOO\GDQJHURXVFRQGLWLRQVDFWXDOO\
H[SODQDWLRQIRXUIDFWRUVOLVWHGE\WKH$/sLQKHUGHFLVLRQ              H[LVW
  DLUTXDOLW\DWWKHIDFLOLW\H[FHHGHG03&>PD[LPXP               7KH%RDUGjVQHZO\DGRSWHGWHVWIRUDSSOLFDELOLW\LV
  SHUPLVVLEOHFRQFHQWUDWLRQ@DWZRUNVWDWLRQVIRUDWOHDVW       SUHPLVHGRQWKHLGHDWKDWUHTXLUHVDJRRGIDLWKEHOLHILQ
  WKHODVWTXDUWHUSUHFHGLQJWKHVWULNHWKHSURWUDFWHG         WKH H[LVWHQFH RI DEQRUPDOO\ GDQJHURXV ZRUNLQJ FRQGLWLRQV
  XVHRIUHVSLUDWRUVE\DVXEVWDQWLDOQXPEHURIHPSOR\HHV           DQGWKDWWKHEHOLHIEHVXSSRUWHGE\DVFHUWDLQDEOHREMHFWLYH
  ZDV GHOHWHULRXV WR WKHLU KHDOWK  WKH HPSOR\HHV
        HYLGHQFH716DUJXHVWKDWWKLVLVLQFRUUHFWoWKDWDEQRUPDO
  DYHUDJHZKROHERG\XUDQLXPH[SRVXUHVZHUHIDUJUHDWHU             GDQJHULQIDFWLVUHTXLUHGEHIRUHZLOODSSO\WRDZRUN
  WKDQWKRVHW\SLFDOIRUWKHQXFOHDULQGXVWU\DQGWKDW         VWRSSDJH  :KLOH DJDLQ WKHUH DUH DUJXPHQWV VXSSRUWLQJ
  UHSHDWHGDQGH[FHVVLYHXUDQLXPLQXULQHOHYHOVLQGLFDWHG          716jVLQWHUSUHWDWLRQRI&KHYURQDJDLQFRPSHOVWKLV
  VHULRXVULVNRINLGQH\GDPDJH                                    FRXUWWRDIILUPWKH%RDUGjVFRQWUDU\LQWHUSUHWDWLRQ
716  :/  DW   7KH %RDUG KHOG WKDW WKLV      ,Q VXSSRUW RI LWV SRVLWLRQ 716 VWDWHV WKDW WKH 6XSUHPH
HYLGHQFH mFRQVWLWXWHV REMHFWLYH SURRI VXSSRUWLQJ >WKH          &RXUWLQ*DWHZD\&RDOGLFWDWHGDQDSSURDFKUHTXLULQJVXFK
HPSOR\HHVj@ EHOLHI WKDW WKHLU ZRUNSODFH KDG EHFRPH WRR       DVWDQGDUG,WLVWUXHWKDW*DWHZD\&RDOFDQEHUHDGWKLVZD\
XQVDIHDQHQYLURQPHQWWRFRQWLQXHZRUNLQJl,ELG                  DVLWUHTXLUHVmREMHFWLYHHYLGHQFHWKDW>DEQRUPDOO\GDQJHURXV@
                                                                    FRQGLWLRQVDFWXDOO\REWDLQl*DWHZD\&RDO86DW
  2QHPXVWJREDFNWRWKH$/sjVGHFLVLRQLQWKLVFDVHWRILOO       HPSKDVLV DGGHG  *DWHZD\ &RDO JRHV RQ WR VWDWH WKDW mD
RXWWKHGHWDLOVRIWKHIDFWVFLWHGE\WKH%RDUGDVVXSSRUWLQJWKH   XQLRQ VHHNLQJ WR MXVWLI\ D FRQWUDFWXDOO\ SURKLELWHG ZRUN
HPSOR\HHVjEHOLHIWKDWWKHLUZRUNSODFHZDVWRRGDQJHURXVWR         VWRSSDJHXQGHUPXVWSUHVHQWµDVFHUWDLQDEOHREMHFWLYH
ZRUNLQ                                                           HYLGHQFH VXSSRUWLQJ LWV FRQFOXVLRQ WKDW DQ DEQRUPDOO\
                                                                    GDQJHURXVFRQGLWLRQIRUZRUNH[LVWVjl,GDWTXRWLQJ
   7KHILUVWSLHFHRIHYLGHQFHFLWHGE\WKH%RDUGGHDOWZLWKWKH    *DWHZD\&RDO&RY8QLWHG0LQH:RUNHUVRI$PHULFD
DPRXQWRI'8GXVWLQWKHIDFLOLW\jVDLU6LQFHWKH'8XVHGLQ      )GG&LU5RVHQQ&sGLVVHQWLQJ
WKHPDQXIDFWXULQJSURFHVVDW716LVDORZOHYHOUDGLRDFWLYH
PDWHULDOWKH7'5+VHWDVWDQGDUGIRUWKH03&RIDLUERUQH             716DOVRFLWHV1/5%Y)UXLQ&ROQRQ&RQVWUXFWLRQ&R
'8SDUWLFOHVGHILQHGDVWKHDPRXQWRIDLUERUQHUDGLRDFWLYH         )GWK&LUZKLFKKHOGWKDWHPSOR\HHV
PDWHULDO EH\RQG ZKLFK QR ZRUNHU LV WR EH H[SRVHG IRU    OHDYLQJ WKHLU MREV EHFDXVH RI GDQJHURXV FRQGLWLRQV ULVN
KRXUVSHUZHHNIRUZHHNV7KRXJKWKHUHLVDJUHDWGHDORI       GLVFKDUJHEHFDXVHRIWKHLUQRVWULNHFODXVHmVKRXOGSURRIODWHU
EDFNDQGIRUWKLQWKHUHFRUGZLWKUHVSHFWWRLWVVLJQLILFDQFHLW   RI WKH SK\VLFDO IDFWV IDLO WR VXSSRUW WKHLU SULRU EHOLHIl
LV XQGLVSXWHG WKDW ERWK FRPSDQ\ UHFRUGV DQG 7'5+             )XUWKHU716SRLQWVRXWWKDWWKH%RDUGKDVIROORZHGWKLVYLHZ
LQVSHFWLRQV UHYHDOHG '8 GXVW LQ H[FHVV RI 03& DW VRPH      LQWKHSDVWKROGLQJWKDWm>L@WLVZHOOVHWWOHGWKDW6HFWLRQ
ZRUNVWDWLRQVLQWKH716SODQW                                      DSSOLHVRQO\ZKHUHLWKDVEHHQREMHFWLYHO\HVWDEOLVKHGWKDWWKH
                                                                    ZRUNLQJFRQGLWLRQVDUHDEQRUPDOO\GDQJHURXVl*RRG\HDU
  +RZHYHUWKHVHFRQGSLHFHRIHYLGHQFHFLWHGE\WKH%RDUG         7LUH 	 5XEEHU &R  1/5%    %RDUG
WKDW HPSOR\HHV ZHUH ZHDULQJ UHVSLUDWRUV ZDV LQ GLUHFW       RYHUUXOLQJ DQ $/s GHFLVLRQ KROGLQJ WKDW   SURWHFWV
UHVSRQVHWRWKHKLJKOHYHOVRI'8GXVWIRXQGWREHLQWKHDLU
    716,QFY1/5%                   1RV         1RV                   716,QFY1/5%       

HPSOR\HHV ZLWK RQO\ D JRRG IDLWK EHOLHI WKDW DEQRUPDOO\           WRZRUNXQGHUFRQGLWLRQVWKDWWKHHPSOR\HHUHDVRQDEO\
GDQJHURXVFRQGLWLRQVH[LVW                                              EHOLHYHVSRVHDQLPPLQHQWULVNRIGHDWKRUVHULRXVERGLO\
                                                                          LQMXU\DQGWKHHPSOR\HHKDVUHDVRQWREHOLHYHWKDW
   +RZHYHUWKHUHDUHDJDLQUHVSRQVHVWR716jVDUJXPHQWV                 WKHUHLVQRWVXIILFLHQWWLPHRURSSRUWXQLW\HLWKHUWRVHHN
)RU H[DPSOH WKRXJK WKH ODQJXDJH TXRWHG DERYH IURP                 HIIHFWLYHUHGUHVVIURPKLVHPSOR\HURUWRDSSULVH26+$
*DWHZD\ &RDO VHHPV WR VXSSRUW 716jV UHDGLQJ RI              RIWKHGDQJHU
*DWHZD\&RDODFWXDOO\GHDOVZLWKDVLWXDWLRQZKHUHDVWULNLQJ
XQLRQFODLPHGSURWHFWLRQEDVHGVROHO\RQWKHLUFODLPRI             1RWKLQJLQWKH$FWVXJJHVWVWKDW WKRVHIHZHPSOR\HHV
VXEMHFWLYHEHOLHIRIDEQRUPDOGDQJHU7KHXQLRQRIIHUHGQR               ZKRKDYHWRIDFHWKLVGLOHPPDPXVWUHO\H[FOXVLYHO\RQ
REMHFWLYHHYLGHQFHWREDFNXSWKLVFODLPDQGLWZDVRQWKLV              WKHUHPHGLHVH[SUHVVO\VHWIRUWKLQWKH$FWDWWKHULVNRI
EDVLVWKDWWKH&RXUWKHOGWKDWGLGQRWDSSO\,ELG$V            WKHLU RZQ VDIHW\ %XW QRWKLQJ LQ WKH $FW H[SOLFLWO\
IRUWKH(LJKWK&LUFXLWjV)UXLQ&ROQRQGHFLVLRQWKLVWRRZDV              SURYLGHV RWKHUZLVH $JDLQVW WKLV EDFNJURXQG RI
D VLWXDWLRQ YLUWXDOO\ GHYRLG RI DQ\ HYLGHQFH RI DEQRUPDO          OHJLVODWLYH VLOHQFH WKH 6HFUHWDU\ KDV H[HUFLVHG KLV
GDQJHU6HH)UXLQ&ROQRQ)GDWUHMHFWLQJ               UXOHPDNLQJSRZHUXQGHU86&JDQGKDV
DSSOLFDELOLW\ZKHQHYLGHQFHRIDEQRUPDOGDQJHUZDVmEDVHG                 GHWHUPLQHGWKDWZKHQDQHPSOR\HHLQJRRGIDLWKILQGV
XSRQ LVRODWHG WHVWLPRQ\ RI WKH DOOHJHG GLVFULPLQDWHHV DQG          KLPVHOILQVXFKDSUHGLFDPHQWKHPD\UHIXVHWRH[SRVH
XQUHDVRQDEOHLQIHUHQFHVZKLFKDUHXQVXEVWDQWLDOFRQVLGHULQJ               KLPVHOI WR WKH GDQJHURXV FRQGLWLRQ ZLWKRXW EHLQJ
WKHUHFRUGDVDZKROHl                                                 VXEMHFWHG WR VXEVHTXHQW GLVFULPLQDWLRQ E\ WKH
                                                                          HPSOR\HU
  )XUWKHUZKLOHWKHUHLVFDVHODZWHQGLQJWRVXSSRUW716jV
UHDGLQJRIWKHUHLVDOVRFDVHODZWKDWFOHDUO\VXSSRUWV          :KLUOSRRO  86 DW   :KLOH WKHUH DUH FHUWDLQO\
WKH%RDUGjVLQWHUSUHWDWLRQ)RUH[DPSOHWKLVFLUFXLWKDVKHOG         GLIIHUHQFHV EHWZHHQ WKLV FDVH DQG:KLUOSRRO IRU H[DPSOH
WKDWWKHLPSRUWDQWTXHVWLRQLQDVLWXDWLRQLVQRWZKHWKHU         KHUH WKHUH LV QR H[SUHVV UXOH IURP WKH 6HFUHWDU\ RI /DERU
DEQRUPDOGDQJHUDFWXDOO\H[LVWHGEXWZKHWKHULWZDVVKRZQ              SHUPLWWLQJ WKH DFWLRQ EDVHG RQ JRRG IDLWK EHOLHI DQG WKH
E\REMHFWLYHHYLGHQFHWKDWWKHHPSOR\HHVjZRUNLQJFRQGLWLRQV            SURYLVLRQVDUHXQGHUGLIIHUHQWVWDWXWHVZLWKGLIIHUHQWSXUSRVHV
mPLJKWUHDVRQDEO\EHFRQVLGHUHGµDEQRUPDOO\ GDQJHURXVjl               DQG JRDOV WKLV FDVH UHSUHVHQWV DQDORJRXV VXSSRUW IRU WKH
.QLJKW 0RUOH\  )G DW   ,Q VR KROGLQJ WKLV FRXUW   SURSRVLWLRQWKDW WKH%RDUGFDQILQGDSHUPLVVLEOHEDVLVIRU
ZURWHWKDWmH[SUHVVO\OLPLWVWKHULJKWRIPDQDJHPHQWWR           HPSOR\HHVWRHQJDJHLQDZRUNVWRSSDJHEDVHGRQUDGLDWLRQ
UHTXLUH FRQWLQXDQFH RI ZRUN XQGHU ZKDW WKH HPSOR\HHV LQ         VDIHW\HYHQLQWKHDEVHQFHRIGHFLVLYHDFWLRQE\WKH15&
JRRGIDLWKEHOLHYHWREHµDEQRUPDOO\GDQJHURXVjFRQGLWLRQVl
,ELG                                                                      +DYLQJUHMHFWHGWKHSURSRVLWLRQWKDWWKH1/5%FDQQRWDV
                                                                        D PDWWHU RI ODZ ILQG WKDW REMHFWLYH HYLGHQFH VXSSRUWV
  7KHUHLVDOVRSHUVXDVLYHDXWKRULW\WRVXSSRUWWKH%RDUGjV             HPSOR\HHVj EHOLHI LQ DEQRUPDOO\ GDQJHURXV ZRUNLQJ
SRVLWLRQ)RUH[DPSOHLQ%DQ\DUGY1/5%)G               FRQGLWLRQVZKHQUHOHYDQWUHJXODWRU\DJHQFLHVKDYHFKRVHQQRW
  WKH 'LVWULFW RI &ROXPELD &LUFXLW UHMHFWHG WKH       WR WDNH LPPHGLDWH RU HPHUJHQF\ DFWLRQ ZH PXVW FRQVLGHU
QRWLRQWKDWVHWVXSDQXQVDIHLQIDFWVWDQGDUG,QVWHDG         ZKHWKHUWKH%RDUGjVIDFWXDOILQGLQJRIREMHFWLYHHYLGHQFHLQ
WKH%DQ\DUGFRXUWH[SODLQHGWKDWWKHLVVXHLQFDVHVLV            WKLVFDVHLVVXSSRUWHGE\VXEVWDQWLDOHYLGHQFH
ZKHWKHUmLQWKH%RDUGjVRZQODQJXDJHµWKHDFWXDOZRUNLQJ
FRQGLWLRQVVKRZQWRH[LVWE\FRPSHWHQWHYLGHQFHPLJKWLQWKH              $V ZRXOG EH H[SHFWHG LQ D FDVH ZLWK WKH FRPSOLFDWHG
                                                                        SURFHGXUDOKLVWRU\RIWKLVRQHWKHUHLVH[WHQVLYHHYLGHQFHLQ
    716,QFY1/5%                   1RV         1RV                   716,QFY1/5%       

EXLOGDFUHGLEOHFDVHWKDWDEQRUPDOGDQJHUH[LVWHGWKHUHE\             FLUFXPVWDQFHV UHDVRQDEO\ EH FRQVLGHUHG mDEQRUPDOO\
SURYLGLQJDEDVLVIRUDSURWHFWHGMREDFWLRQZKLFKRIFRXUVH         GDQJHURXVljl,ELG
PLJKW EH XVHG PDQLSXODWLYHO\ WR VHFXUH XQUHODWHG
FRQFHVVLRQV6RPHPD\DUJXHWKDWWKH15&jVEULJKWOLQH                   )LQDOO\DOWKRXJKWKH%RDUGKDVXVHGODQJXDJHLQSULRUFDVHV
UXOHVDQGUDGLDWLRQJXLGHOLQHVZRXOGWKHUHIRUHEHXQGHUPLQHG            VXJJHVWLQJWKHXVHRIDGDQJHULQIDFWVWDQGDUGWKH%RDUGKDV
E\FRPSDQLHVKDYLQJWRZRUU\QRWMXVWDERXWWKH 15&EXW                DOVRIRXQGDSSOLFDEOHWRZRUNVWRSSDJHVZKHUHLWZDV
DOVRDERXWWKH1/5%LQWKHLUUDGLDWLRQSURJUDPV+RZHYHU              GHWHUPLQHGWKDWWKHFRPSODLQHGRIZRUNLQJFRQGLWLRQVZHUH
WKLV SUDFWLFDO FRQVLGHUDWLRQ LV IRU WKH WLPH EHLQJ PHUHO\       QRW LQ IDFW DEQRUPDOO\ GDQJHURXV  +RZHYHU REMHFWLYH
VSHFXODWLYHDVWKH%RDUGDUJXHVULJKWO\WKDWLWGLGQRWPDNHD         HYLGHQFH RI DEQRUPDO GDQJHU ZDV UHTXLUHG WR VXSSRUW WKH
GHFLVLRQ FRQWUDU\ WR 15& ILQGLQJV EXW PHUHO\ IRXQG              HPSOR\HHVjEHOLHI6HH5RDGZD\([SUHVV1/5%
REMHFWLYH HYLGHQFH LQ SDUW EDVHG RQ 15& 	 7'5+ QRQ           DQH[SHULHQFHGWUXFNGULYHUjVRSLQLRQWKDWDWUXFN
FRPSOLDQFH OHWWHUV WR VXSSRUW WKH HPSOR\HHVj JRRG IDLWK         ZDVXQVDIHZKHQWKDWRSLQLRQZDVVKDUHGE\RWKHUGULYHUV
EHOLHIWKDWWKHLUZRUNSODFHZDVDEQRUPDOO\GDQJHURXV                   ZDV mREMHFWLYH HQRXJKl HYLGHQFH XQGHU   mWR OHDG D
                                                                        SHUVRQWRUHDVRQDEO\GHWHUPLQHWKDWKHVKRXOGQRWGULYHVXFK
   )XUWKHU OHDYLQJ SROLF\ GHFLVLRQV DVLGH WKHUH LV DW OHDVW   DWUXFNl5HGZLQJ&DUULHUV,QF1/5%
VRPHVXSSRUWIRUWKH%RDUGjVGHWHUPLQDWLRQWKDWLWQHHGQRW              m:KDW FRQWUROV LV QRW WKH VWDWH RI PLQG RI WKH
GHIHU FRPSOHWHO\ WR WKH 15&  ,Q WKH 6XSUHPH &RXUWjV           HPSOR\HH    FRQFHUQHG EXW ZKHWKHU WKH DFWXDO ZRUNLQJ
:KLUOSRROGHFLVLRQ86DWWKH&RXUWZDVDVNHGWR            FRQGLWLRQVVKRZQWRH[LVWE\FRPSHWHQWHYLGHQFHPLJKWLQWKH
GHFLGHWKHYDOLGLW\RIDUXOHSURPXOJDWHGE\WKH6HFUHWDU\RI           FLUFXPVWDQFHV UHDVRQDEO\ EH FRQVLGHUHG µDEQRUPDOO\
/DERUZKLFKDOORZHGZRUNHUVWRUHIXVHWRHQJDJHLQZRUN                GDQJHURXVjl
WKH\ LQ JRRG IDLWK EHOLHYHG WR EH GDQJHURXV  $UJXPHQWV
DJDLQVW WKH UXOH LQFOXGHG WKH IDFWV WKDW WKH 2FFXSDWLRQDO         ,Q VKRUW DJDLQ WKHUH LV HYLGHQFH WR VXSSRUW WKH
6DIHW\DQG+HDOWK$FW26+$FWGLGQRWH[SOLFLWO\SURYLGH              LQWHUSUHWDWLRQVDGRSWHGE\ERWKVLGHV7KHUHIRUHWKHTXHVWLRQ
IRU WKLV W\SH RI SURWHFWHG UHIXVDO DQG WKDW WKH HPSOR\HHV     FRPHVGRZQWRRQHRIVWDQGDUGRIUHYLHZ716DUJXHVWKDW
DOUHDG\KDGDQDYHQXHIRUUHGUHVVRIVDIHW\FRQFHUQVWKURXJK            WKH %RDUG LV QRW HQWLWOHG WR GHIHUHQFH LQ LWV VWDWXWRU\
WKH 26+ $FW E\ GLUHFW FRPSODLQW WR 26+$ WKH DJHQF\            FRQVWUXFWLRQKHUHEHFDXVHLWFRQWHQGV&RQJUHVVKDVVSRNHQ
FKDUJHGZLWKHQIRUFLQJWKHDFW7KH&RXUWIRXQGWKDWGHVSLWH          RQWKLVLVVXH7KH&RPSDQ\SRLQWVWRWKHWH[WRIZKLFK
WKH H[LVWHQFH RI DQ DGPLQLVWUDWLYH DJHQF\ FKDUJHG ZLWK           SURYLGHV LWV SURWHFWLRQ WR WKH mTXLWWLQJ RI ODERU E\ DQ
HYDOXDWLQJ VDIHW\ WKHUH ZHUH WLPHV ZKHQ LW ZRXOG EH            HPSOR\HHRUHPSOR\HHVLQJRRGIDLWKEHFDXVHRIDEQRUPDOO\
QHFHVVDU\IRUHPSOR\HHVWRWDNHPDWWHUVLQWRWKHLURZQKDQGV           GDQJHURXV FRQGLWLRQV IRU ZRUNl  $FFRUGLQJ WR 716 WKLV
'LVFXVVLQJ WKH YDOLGLW\ RI WKH UXOH DOORZLQJ HPSOR\HHV WR       ODQJXDJHFOHDUO\H[SUHVVHV&RQJUHVVjVLQWHQWWKDWRQO\
UHIXVH FHUWDLQ MREV HYHQ ZKHQ 26+$ KDG QRW SURKLELWHG          FRYHUFDVHVZKHUHDEQRUPDOO\GDQJHURXVFRQGLWLRQVDFWXDOO\
ZRUNHUVIURPSHUIRUPLQJWKHPWKH&RXUWZURWH                          H[LVW
  >&@LUFXPVWDQFHV PD\ VRPHWLPHV H[LVW LQ ZKLFK WKH                  :KLOHLWLVWUXHWKDW&RQJUHVVFRXOGKDYHGUDIWHGDFOHDUHU
  HPSOR\HHMXVWLILDEO\EHOLHYHVWKDWWKHH[SUHVVVWDWXWRU\              H[SUHVVLRQRILWVLQWHQWLWLVQRWWUXHWKDWLWGLGLQWKHSUHVHQW
  DUUDQJHPHQW>WKH26+$FW@GRHVQRWVXIILFLHQWO\SURWHFW               FDVH7KHWH[WRIWDNHQDVDZKROHLVRSHQWRERWK
  KLP IURP GHDWK RU VHULRXV LQMXU\ 6XFK FLUFXPVWDQFHV           LQWHUSUHWDWLRQV DV LV HYLGHQW IURP WKH H[WHQVLYH FDVH ODZ
  ZLOOSUREDEO\QRWRIWHQRFFXUEXWVXFKDVLWXDWLRQPD\               GLVFXVVHG DERYH DWWHPSWLQJ WR LQWHUSUHW WKH VWDWXWH DQG
  DULVHZKHQWKHHPSOR\HHLVRUGHUHGE\KLVHPSOR\HU                FRPLQJ RXW RQ ERWK VLGHV  $V WKH 6XSUHPH &RXUW KDV
    716,QFY1/5%                  1RV         1RV                   716,QFY1/5%        

H[SODLQHGm>L@IWKHLQWHQWRI&RQJUHVVLVFOHDUWKDWLVWKHHQG      FRXQWHUPDQGV WKH GHWHUPLQDWLRQV RI DJHQFLHV ZLWK WKDW
RIWKHPDWWHUIRUWKHFRXUWDVZHOODVWKHDJHQF\PXVWJLYH         H[SHUWLVHDQGWKHUHE\IUXVWUDWHVEURDGHUSXUSRVHV6HH/3$
HIIHFWWRWKHXQDPELJXRXVO\H[SUHVVHGLQWHQWRI&RQJUHVVl             ,QFDQGWKH1DWjO$VVjQRI0IUV%UDW$VDQH[DPSOH
&KHYURQ  86 DW   +RZHYHU mLI WKH VWDWXWH LV    LQVSHDNLQJSDUWLFXODUO\RIWKH15&WKH6L[WK&LUFXLWKDV
VLOHQW RU DPELJXRXV ZLWK UHVSHFW WR WKH VSHFLILF LVVXH WKH   MRLQHGZLWKDOPRVWHYHU\RWKHUFLUFXLWLQKROGLQJWKDW15&
TXHVWLRQIRUWKHFRXUWLVZKHWKHUWKHDJHQF\
VDQVZHULVEDVHG         VDIHW\UHJXODWLRQVFRQFOXVLYHO\HVWDEOLVKWKHGXW\RIFDUHRZHG
RQDSHUPLVVLEOHFRQVWUXFWLRQRIWKHVWDWXWHl,GDW,Q        E\ GHIHQGDQWV LQ UDGLDWLRQ VDIHW\ SHUVRQDO LQMXU\ FDVHV
WKLV FDVH &RQJUHVVjV LQWHQW RQ WKLV VSHFLILF LVVXH LV         JRYHUQHGE\WKHDPHQGPHQWVWRWKH3ULFH$QGHUVRQ$FW
DPELJXRXVDQGWKHUHIRUHWKLVFRXUWPXVWDSSO\WKHGHIHUHQWLDO         6HH1LHPDQY1/2,QF)GWK&LU
&KHYURQ VWDQGDUG RI UHYLHZ WR WKH %RDUGjV LQWHUSUHWDWLRQ       
6LQFHWKHFRQVWUXFWLRQSXWIRUZDUGLVERWKSHUPLVVLEOHDQG
UHDVRQDEOHWKLVFRXUWPXVWXSKROGWKH%RDUGjVGHWHUPLQDWLRQ              $V IRU WKH %RDUG LW KDV LQ WKH SDVW DFFHSWHG DJHQFLHVj
WKDWUHTXLUHVRQO\DJRRGIDLWKEHOLHIoVXSSRUWHGE\            VWDQGDUGV DQG UHJXODWLRQV JRYHUQLQJ WKH DJHQFLHVj DUHDV RI
DVFHUWDLQDEOH REMHFWLYH HYLGHQFH o LQ WKH H[LVWHQFH RI         FRQFHUQLQGHWHUPLQLQJZKHWKHUDFODLPRIDEQRUPDOGDQJHU
DEQRUPDOO\GDQJHURXVZRUNLQJFRQGLWLRQV                               ZDVSURYHQE\REMHFWLYHIDFWV6HH*RRG\HDU1/5%
                                                                       DW  %RDUG UHMHFWHG   FODLP RI DEQRUPDO GDQJHU
   :KHWKHUWKH%RDUGHUUHGLQLQWHUSUHWLQJWRSURKLELW         UHO\LQJ LQ SDUW RQ PDQXIDFWXUHUjV VWDWHPHQWV WKDW IHGHUDO
     FRPSDQLHVIURPSHUPDQHQWO\UHSODFLQJZRUNHUVZKRTXLW             UHJXODWRU\DJHQFLHVKDGQRWUHVWULFWHGXVHRISURGXFW'DQLHO
     ZRUNEHFDXVHRIDEQRUPDOO\GDQJHURXVFRQGLWLRQV                   &RQVWU&R1/5%%RDUGDIILUPHGWKDW
                                                                       HPSOR\HHjVUHIXVDOWRZRUNLQUDGLDWLRQDUHDGLGQRWIDOOXQGHU
   716jVILQDOFKDOOHQJHWRWKH%RDUGjVVWDWXWRU\LQWHUSUHWDWLRQ       EHFDXVHQRREMHFWLYHHYLGHQFHZDVIRXQGWRVXSSRUW
LV WKDW WKH %RDUG LQFRUUHFWO\ LQWHUSUHWHG   WR SUHFOXGH   GDQJHUFODLPDQGWKHUHZDVDSSDUHQWIXOOIHGHUDOUHJXODWRU\
HPSOR\HUVIURPSHUPDQHQWO\UHSODFLQJZRUNHUVHQJDJHGLQD              FRPSOLDQFH%DNHU0DULQH&RUS1/5%
ZRUNVWRSSDJH716DUJXHVWKDWDQHPSOR\HUVKRXOG               %RDUGUHMHFWHGFODLPRIDEQRUPDOGDQJHUDIWHU$/s
KDYHWKHVDPHULJKWWRUHSODFHZRUNHUVZKRSDUWLFLSDWHLQD            QRWHGSURFHGXUHVZLWKLQ26+$VDIHW\VWDQGDUGV
ZRUNVWRSSDJHDVLWGRHVWRUHSODFHDQ\RWKHUHPSOR\HHV
ZKRHQJDJHLQZRUNVWRSSDJHVQRWFDXVHGRUSURORQJHGE\                   +RZHYHU LQ WKH SUHVHQW FDVH WKH %RDUG GLG QRW ILQG
HPSOR\HUXQIDLUODERUSUDFWLFHV6HH1/5%Y0DFND\5DGLR             mDEQRUPDOO\GDQJHURXVlDFRQGLWLRQWKDWWKH15&GLGQRWILQG
	 7HO &R  86    KROGLQJ WKDW DQ     GDQJHURXV,WIRXQGPHUHO\WKDWWKHUHZDVREMHFWLYHHYLGHQFH
HPSOR\HUPD\UHSODFHVWULNLQJZRUNHUVZLWKRWKHUVWRFDUU\RQ          WRVXSSRUWWKHHPSOR\HHVjEHOLHIWKDWWKHLUZRUNLQJFRQGLWLRQV
EXVLQHVVVRORQJDVWKHHPSOR\HULVQRWJXLOW\RIXQIDLUODERU         ZHUHDEQRUPDOO\GDQJHURXV7KHUHLVDSUDFWLFDOFRQFHUQWKDW
SUDFWLFHV6HHDOVR%HONQDS,QFY+DOH86         WKLVLVPHUHO\VSOLWWLQJKDLUVDQGWKDWE\SHUPLWWLQJHPSOR\HHV
QKROGLQJWKDWDEVHQWHYLGHQFHRIDQLQGHSHQGHQW             SURWHFWLRQIRUZRUNVWRSSDJHVLQFDVHVZKHUHUHJXODWRU\
XQODZIXO SXUSRVH LW LV WR EH SUHVXPHG WKDW DQ HPSOR\HUjV     DJHQFLHVKDYHQRWVHHQWKHQHHGWRDFWGHFLVLYHO\WKH%RDUG
PRWLYHLQSHUPDQHQWO\UHSODFLQJLWVHPSOR\HHVLVWRVHUYHWKH          ZRXOGHIIHFWLYHO\EHVHWWLQJKLJKHUDQGGLIIHUHQWVWDQGDUGV
OHJLWLPDWHEXVLQHVVLQWHUHVWRIFRQWLQXLQJLWVRSHUDWLRQ716        IRUQXFOHDUVDIHW\WKDQWKRVHVHWE\WKHH[SHUWDJHQFLHV2QH
FODLPV WKDW EHFDXVH LW KDV QRW HQJDJHG LQ DQ XQIDLU ODERU    PLJKWDUJXHDFFRUGLQJO\WKDWFRPSDQLHVZRXOGWKHQEHIRUFHG
SUDFWLFHJRYHUQHGE\RI1/5$LWVKRXOGEHSHUPLWWHG             WR FRQWLQXH WR FRPSO\ ZLWK WKH QXFOHDU DJHQFLHVj
WRSHUPDQHQWO\UHSODFHZRUNHUVVWULNLQJXQGHU                   UHTXLUHPHQWVEXWDWWKHVDPHWLPHPDNHVXUHWKDWoGHVSLWH
                                                                       WKH FRPSDQLHVj FRPSOLDQFH o HPSOR\HHV ZHUH QRW DEOH WR
    716,QFY1/5%                   1RV          1RV                   716,QFY1/5%        

VDIHW\H[LVW>V@l7161/5%DWTXRWLQJ7'5+                 7KLVDUJXPHQWIDLOVLQWKLVFRXUWRQFHDJDLQEHFDXVHRIWKH
,QVSHFWLRQ5HSRUWIURP0DUFKLQVSHFWLRQ                     &KHYURQ GRFWULQH  ,Q WKH DEVHQFH RI D FOHDU WH[WXDO
                                                                         GHVFULSWLRQRIZKDWSURWHFWLRQVDUHWREHRIIHUHGWRHPSOR\HHV
   716DUJXHVWKDWZKHUHDQH[SHUWDJHQF\PRQLWRULQJWKH                HQJDJHGLQDFWLRQVWKH%RDUGKDVLQWHUSUHWHGWR
VLWXDWLRQDQGKDYLQJDXWKRULW\WRVKXWGRZQWKHZRUNSODFHRU            SURWHFWFRYHUHGHPSOR\HHVIURPEHLQJSHUPDQHQWO\UHSODFHG
UHPRYH HPSOR\HHV IURP WKHLU MREV IRU VDIHW\ RU KHDOWK            6LQFHWKLVLQWHUSUHWDWLRQLVVXSSRUWHGE\ORJLFLWLVUHDVRQDEOH
UHDVRQVKDVQRWWDNHQVXFKDFWLRQDSSURSULDWHGHIHUHQFHWR             DQGPXVWEHXSKHOG
WKDW DJHQF\jV H[SHUWLVH UHTXLUHV WKDW WKH %RDUG DSSO\ D
SUHVXPSWLRQWKDWQRmDEQRUPDOGDQJHUlH[LVWV                             7KLVLQWHUSUHWDWLRQLVVXSSRUWHGE\UHDVRQLQVHYHUDOZD\V
                                                                         )LUVWDVWKH&RXUWUHFRJQL]HGLQ*DWHZD\&RDO86DW
  7KH %RDUG UHVSRQGV WKDW LW GLG QRW ILQG WKDW ZRUNLQJ          FRQIHUVmVSHFLDOSURWHFWLRQlRQHPSOR\HHVZKR
FRQGLWLRQVZHUHLQIDFWDEQRUPDOO\GDQJHURXVUDWKHULWIRXQG            TXLW ZRUN LQ WKH JRRG IDLWK EHOLHI WKDW WKHLU ZRUNSODFH LV
WKDW HPSOR\HHV SRVVHVVHG D JRRG IDLWK EHOLHI WKDW WKHLU          DEQRUPDOO\ GDQJHURXV KRZHYHU WKLV SURWHFWLRQ LV
ZRUNSODFH ZDV DEQRUPDOO\ GDQJHURXV DQG WKDW REMHFWLYH              PHDQLQJOHVVLIFRPSDQLHVFDQVLPSO\UHSODFHWKHVHHPSOR\HHV
HYLGHQFHVXSSRUWHGWKDWEHOLHI6RDVWKH%RDUGVWDWHVLQLWV          DVLIWKH\ZHUHQRUPDOHFRQRPLFVWULNHUV7KRXJKWKLVFRXUW
EULHIWRWKLVFRXUWHYHQLIWKH15&DQGWKH7'5+IRXQGWKDW             KDV QRW GLVFXVVHG WKLV LVVXH VSHFLILFDOO\ WKH %RDUGjV
QRDEQRUPDOGDQJHUH[LVWHGDW716WKH1/5%mVWLOOZRXOG                 GHWHUPLQDWLRQWKDWHPSOR\HUVPD\QRWSHUPDQHQWO\UHSODFH
QRWKDYHEHHQFRPSHOOHGWRGLVPLVVWKHFRPSODLQWSURYLGHG               HPSOR\HHVZKRHQJDJHLQMREDFWLRQVFRQIRUPVZLWK
WKDW WKH REMHFWLYH UHFRUG HYLGHQFH EHIRUH LW VKRZHG WKDW         WKLVFRXUWjVKROGLQJWKDWm>Z@KHQDZRUNVWRSSDJHSURSHUO\
FRQGLWLRQVDWWKHWLPHRIWKHZRUNVWRSSDJHPLJKWUHDVRQDEO\             UHVXOWV IURP DEQRUPDOO\ GDQJHURXV ZRUNLQJ FRQGLWLRQV DQ
EH FRQVLGHUHG DEQRUPDOO\ GDQJHURXVl  1/5% %U DW             HPSOR\HUFDQQRWUHVRUWWRWKHZHDSRQVDYDLODEOHWRKLPLQDQ
)XUWKHU WKH %RDUG FRQWHQGV WKDW LW GLG QRW E\ LWV ILQGLQJ   HFRQRPLFDOO\PRWLYDWHG ZRUN VWRSSDJHl  &ODUN (QJjJ 	
PDNHWKHILQGLQJVRIWKH15&DQGWKH7'5+LUUHOHYDQWRQ                 &RQVWU&RY8QLWHG%KGRI&DUSHQWHUV	sRLQHUV)G
WKHFRQWUDU\WKH%RDUGXVHGFLWDWLRQOHWWHUVIURPWKH7'5+             WK&LU
FKDUJLQJ716ZLWKYLRODWLRQVRIUDGLDWLRQVDIHW\VWDQGDUGVDV
WKH EDVLV IRU LWV ILQGLQJ WKDW WKHUH ZDV HQRXJK REMHFWLYH          0RUH JHQHUDOO\ WKH 6XSUHPH &RXUW KDV KHOG WKDW D
HYLGHQFHWRVXSSRUWWKHHPSOR\HHVjJRRGIDLWKEHOLHI                    FRPSDQ\jVUHIXVDOWRUHLQVWDWHVWULNHUVLVXQODZIXOXQOHVVLWLV
                                                                         EDVHGRQDOHJLWLPDWHDQGVXEVWDQWLDOEXVLQHVVMXVWLILFDWLRQ
   ,Q JHQHUDO FRXUWV KDYH KHOG WKDW VFLHQWLILF UHJXODWRU\        6HH 1/5% Y )OHHWZRRG 7UDLOHU &R  86  
DJHQFLHVVXFKDVWKH15&VKRXOGEHJLYHQH[WUHPHGHIHUHQFH               $V716SRLQWVRXWWKH&RXUWLQ0DFND\5DGLR
ZLWKLQWKHLUDUHDRIH[SHUWLVH6HH%DOWLPRUH*DV	(OHF&R           86DWKHOGWKDWSHUPDQHQWUHSODFHPHQWRIHFRQRPLF
Y15'&86)HG3RZHU&RPPjQY                   VWULNHUVLVDOHJLWLPDWHEXVLQHVVSXUSRVH+RZHYHUWKH%RDUG
)ORULGD 3RZHU 	 /LJKW &R  86               FRQFOXGHGDVDPDWWHURIVWDWXWRU\LQWHUSUHWDWLRQWKDWWKLVLV
%URZQLQJ)HUULV,QGXVY0XV]\QVNL)GG               QRWOHJLWLPDWHLQWKHFDVHRIDDFWLRQEHFDXVHLWZRXOG
&LUm&RXUWVVKRXOGEHSDUWLFXODUO\UHOXFWDQWWRVHFRQG          GHIHDW SDUW RI WKH SXUSRVH RI DOORZLQJ ZRUNHUV IDFHG ZLWK
JXHVVDJHQF\FKRLFHVLQYROYLQJVFLHQWLILFGLVSXWHVWKDWDUHLQ           DEQRUPDOGDQJHUWRWDNHMREDFWLRQLIWKH\FRXOGVLPSO\EH
WKHDJHQF\jVSURYLQFHRIH[SHUWLVHl$VRQHDPLFXVEULHI              UHSODFHG ZLWK QHZ ZRUNHUV ZKR PD\ QRW EH DZDUH RI WKH
SRLQWHG RXW WKLV GHIHUHQFH SURPRWHV HIILFLHQF\ DYRLGV            GDQJHURXV FRQGLWLRQV  $V PHQWLRQHG &RQJUHVV KDV QRW
XQQHFHVVDU\ GXSOLFDWLRQ RI HIIRUW DQG KHOSV WR DYRLG WKH         VSRNHQ RQ WKLV LVVXH DQG WKH %RDUGjV LQWHUSUHWDWLRQ LV
VLWXDWLRQ ZKHUH DQ DJHQF\ ZLWKRXW H[SHUWLVH LQ DQ DUHD
    716,QFY1/5%                 1RV        1RV                   716,QFY1/5%        

UHDVRQDEOHDVVXFKZHDUHERXQGE\&KHYURQWRXSKROGWKH           mWKHVDIHW\RIQXFOHDUWHFKQRORJ\>LV@WKHH[FOXVLYHEXVLQHVV
%RDUGjVLQWHUSUHWDWLRQ                                              RIWKH)HGHUDO*RYHUQPHQWl&RQJUHVVGHOHJDWHGH[FOXVLYH
                                                                     OLFHQVLQJ DQG UHJXODWRU\ DXWKRULW\ WR WKH $WRPLF (QHUJ\
716jV&KDOOHQJHVWRWKH%RDUGjV$SSOLFDWLRQRILWV             &RPPLVVLRQZKLFKZDVUHSODFHGE\WKH1XFOHDU5HJXODWRU\
        7HVWWRWKH)DFWVRIWKH3UHVHQW&DVH                        &RPPLVVLRQ 15& LQ   6HH 'XNH 3RZHU &R Y
                                                                     &DUROLQD(QYWO6WXG\*URXS,QF86
   7KLV FRXUW KDYLQJ UHMHFWHG 716jV YDULRXV DUJXPHQWV IRU     6SHFLILFDOO\ &RQJUHVV JDYH WKH 15& DXWKRULW\ WR UHJXODWH
ZK\ WKH %RDUGjV IRXUSDUW WHVW LV QRW D SHUPLVVLEOH          QXFOHDUPDWHULDOVWRSURWHFWmSXEOLFKHDOWKDQGVDIHW\l
LQWHUSUHWDWLRQRIZHQRZWXUQWR716jVFKDOOHQJHVWR          &)5E
WKH%RDUGjVDSSOLFDWLRQRILWVWHVWWRWKHIDFWVRIWKLVFDVH$V
QRWHGDERYHLQGHWHUPLQLQJWKDWDSSOLHGWRWKH716               ,QWXUQSXUVXDQWWR86&&RQJUHVVSURYLGHG
HPSOR\HHVj ZRUN VWRSSDJH LQ D VLWXDWLRQ LQYROYLQJ             WKDW WKH 15& PD\ GHOHJDWH FHUWDLQ DVSHFWV RI QXFOHDU
mFXPXODWLYH VORZDFWLQJ GDQJHUV WR HPSOR\HH KHDOWK DQG        UHJXODWLRQWRVWDWHV6HH86&8QGHUWKLV
VDIHW\lWKH%RDUGKHOGWKDWWKH1/5%*HQHUDO&RXQVHOKDG            SURYLVLRQVWDWHUHJXODWRU\DJHQFLHVPD\DVVXPHUHJXODWRU\
VXFFHVVIXOO\SURYHQE\DSUHSRQGHUDQFHRIWKHHYLGHQFHWKDW          DXWKRULW\IRUORZOHYHOUDGLDWLRQVXEMHFWWR15&UHJXODWLRQV
WKHHPSOR\HHVEHOLHYHGLQJRRGIDLWKWKDWWKHLUZRUNLQJ          7HQQHVVHHEHFDPHVXFKDQmDJUHHPHQWVWDWHlLQDQGDV
FRQGLWLRQVZHUHDEQRUPDOO\GDQJHURXVWKHEHOLHIZDVD           DUHVXOWWKH7HQQHVVHH'LYLVLRQRI3XEOLF+HDOWK'LYLVLRQRI
FRQWULEXWLQJFDXVHRIWKHZRUNVWRSSDJHWKHHPSOR\HHVj          5DGLRORJLFDO +HDOWK 7'5+ UHJXODWHV IDFLOLWLHV VXFK DV
EHOLHIZDVVXSSRUWHGE\DVFHUWDLQDEOHREMHFWLYHHYLGHQFHDQG       716DOWKRXJKLWXWLOL]HV15&JXLGHOLQHVWRDFFRPSOLVKWKH
WKHSHUFHLYHGGDQJHUSRVHGDQLPPHGLDWHWKUHDWRIKDUP           UHJXODWLRQ7KH7'5+FRQGXFWVSHULRGLFLQVSHFWLRQVRIWKH
WRHPSOR\HHKHDOWKRUVDIHW\716:/DW           QXFOHDU IDFLOLWLHV LW UHJXODWHV WR HQVXUH WKDW WKH\ DUH LQ
+RZHYHU ZLWK UHVSHFW WR WKH ODVW UHTXLUHPHQW WKH %RDUG     FRPSOLDQFHZLWKUHJXODWLRQVDQG15&RIILFLDOVMRLQ7'5+
QRWHG WKDW GXH WR WKH QDWXUH RI FXPXODWLYH VORZDFWLQJ     LQVSHFWRUVRQRFFDVLRQ7KH7'5+KDVWKHOHJDODXWKRULW\WR
GDQJHUVmWKHUHZLOOSUREDEO\QRWEHDVLQJOHPRPHQWZKHQ            FORVH D IDFLOLW\ E\ VXVSHQGLQJ RU UHYRNLQJ LWV OLFHQVH WR
µLPPHGLDWHj GHSDUWXUH IURP WKH ZRUNSODFH LV REYLRXVO\          RSHUDWHLQWKHVWDWH
QHFHVVDU\l  ,G DW   'HILQHG VR ORRVHO\ WKH IRXUWK
UHTXLUHPHQWLVQRWGLIILFXOWWRIXOILOOSRVVLEO\IRUWKLVUHDVRQ      )URP  RQZDUGV WKH 7'5+ FRQGXFWHG VHPLDQQXDO
716SULQFLSDOO\DUJXHVWKDWWKH%RDUGHUUHGLQILQGLQJWKDWWKH      LQVSHFWLRQVRI716jVRSHUDWLRQV7KHUHLVFRQIOLFWEHWZHHQ
ILUVWVHFRQGDQGWKLUGUHTXLUHPHQWVZHUHIXOILOOHG              WKHSDUWLHVDVWRZKHWKHU716ZDVLQIXOOFRPSOLDQFHZLWK
                                                                     15&DQG7'5+UHJXODWLRQV+RZHYHULIQRWKLQJHOVHWKHUH
  2QUHYLHZE\WKLVFRXUWILQGLQJVRIIDFWPDGHE\WKH%RDUG        VHHPVWREHQRFRQWHQWLRQWKDWWKHDJHQFLHVIRXQGFRQGLWLRQV
DUH FRQFOXVLYH LI VXSSRUWHG E\ VXEVWDQWLDO HYLGHQFH RQ WKH   DWWKHSODQWWREHLPPHGLDWHO\GDQJHURXVDVHYLGHQFHGE\WKH
UHFRUGFRQVLGHUHGDVDZKROH6HH86&I        IDFW WKDW WKH\ PLJKW KDYH WDNHQ GHFLVLYH UHJXODWRU\ DFWLRQ
7KRXJKGHIHUHQWLDOWKLVVWDQGDUGRIUHYLHZLVQRWWULYLDO$V      DJDLQVWWKH&RPSDQ\DQGGLGQRW(YHQWKH%RDUGUHFRJQL]HV
WKH6XSUHPH&RXUWKDVSRLQWHGRXWLWLVQRWHQRXJKPHUHO\WR        WKLV KDYLQJ TXRWHG LQ LWV ILUVW GHFLVLRQ ODQJXDJH IURP WKH
YHULI\ WKDW WKHUH LV HYLGHQFH WR VXSSRUW WKH %RDUGjV         UHSRUWRIWKHODVW7'5+LQVSHFWLRQRIWKH716SODQWSULRUWR
GHWHUPLQDWLRQ mZLWKRXW WDNLQJ LQWR DFFRXQW FRQWUDGLFWRU\        WKHMREDFWLRQmLQSODQWVLWHLVQRWDVFRQWDPLQDWHGDVQRWHG
HYLGHQFHRUHYLGHQFHIURPZKLFKFRQIOLFWLQJLQIHUHQFHVFRXOG         VHYHUDO \HDUV DJR     7KHUH DUH PDQ\ DUHDV WKDW QHHG
EHGUDZQl8QLYHUVDO&DPHUD&RUSY1/5%86            LPSURYHPHQWDQGFRQVWDQWXSGDWLQJEXWLWDSSHDUVWKDWDWWKH
,QVWHDGWKHUHYLHZPXVWDOVRmWDNHLQWRDFFRXQW        SUHVHQWWLPH QR FULVLVRUHPLQHQW>VLF@WKUHDWWRKHDOWKDQG
    716,QFY1/5%                   1RV          1RV                    716,QFY1/5%         

REMHFWLYHHYLGHQFHlRIDEQRUPDOGDQJHU7KH%RDUGGLGWKLV              ZKDWHYHULQWKHUHFRUGIDLUO\GHWUDFWVIURPLWVZHLJKWl,GDW
LQDVLWXDWLRQZKHUHDOWKRXJKWKHUHOHYDQWQXFOHDUUHJXODWRU\             7KH 6XSUHPH &RXUW KDV GHVFULEHG WKLV VWDQGDUG RI
DJHQFLHVVHQWQRQFRPSOLDQFHOHWWHUVDQGFLWHGYLRODWLRQVWKH           UHYLHZ DV mUHTXLULQJ D FRXUW WR DVN ZKHWKHU D µUHDVRQDEOH
DJHQFLHV GLG QRW VHH DQ LPPHGLDWH DQG VHULRXV GDQJHU             PLQG PLJKW DFFHSWj D SDUWLFXODU HYLGHQWLDU\ UHFRUG DV
ZDUUDQWLQJGHFLVLYHDFWLRQ:LWKWKDWLQPLQG716DUJXHVLQ            µDGHTXDWHWRVXSSRUWDFRQFOXVLRQjl'LFNLQVRQY=XUNR
LWV ILQDO FKDOOHQJH WR WKH %RDUGjV IDFWXDO ILQGLQJV WKDW WKLV   86TXRWLQJ&RQVRO(GLVRQ&RY1/5%
FRXUW VKRXOG RYHUWXUQ WKH %RDUGjV ILQGLQJ WKDW HYLGHQFH           86
VXSSRUWHGWKHHPSOR\HHVjEHOLHILQDEQRUPDOGDQJHU
                                                                            :KHWKHU WKH %RDUG HUUHG LQ LWV IDFWXDO GHWHUPLQDWLRQV
  716FDQEHUHDGWREHPDNLQJWZRGLIIHUHQWDUJXPHQWVRQ                     WKDWWKH716HPSOR\HHVEHOLHYHGLQJRRGIDLWKWKDW
WKLVVFRUHDQGZHZLOOGHDOZLWKHDFKLQWXUQ)LUVW 716                  WKHLU ZRUNLQJ FRQGLWLRQV ZHUH DEQRUPDOO\ GDQJHURXV
DUJXHVWKDWDVDPDWWHURIODZWKH%RDUGFDQQRWILQGWKDW                  DQGWKDWWKHLUEHOLHIZDVDFRQWULEXWLQJFDXVHRIWKH
REMHFWLYH HYLGHQFH VXSSRUWV WKH HPSOR\HHVj EHOLHI LQ                    ZRUNVWRSSDJH
DEQRUPDO GDQJHU ZKHQ WKH UHOHYDQW QXFOHDU UHJXODWRU\
DJHQFLHVDUHDFWLYHO\PRQLWRULQJWKH&RPSDQ\jVRSHUDWLRQV                   7KH ILUVW WZR IDFWXDO FKDOOHQJHV PDGH E\ 716 DUH EHVW
DQGILQGQRFDXVHWRRUGHUFORVXUHRUDQ\W\SHRIHPHUJHQF\              DGGUHVVHGWRJHWKHUDVLWLVLPSRVVLEOHWRVHSDUDWHWKHSURRIRI
UHPHGLDODFWLRQ:HUHMHFWWKDWDUJXPHQW$OWHUQDWLYHO\716           RQHIURPWKHSURRIRIWKHRWKHU7KHUHIRUHZHILUVWORRNDW
PLJKWDUJXHWKDWLQWKHSUHVHQWFDVHDQGJLYHQWKHPRQLWRULQJ           ZKHWKHUWKHUHLVVXEVWDQWLDOHYLGHQFHRQWKHUHFRUGDVDZKROH
DQGLQDFWLRQE\WKHUHJXODWRU\ERGLHVWKHDFWXDOILQGLQJVRI            WR VXSSRUW WKH %RDUGjV IDFWXDO ILQGLQJV WKDW WKH 716
IDFWV UHOLHG XSRQ E\ WKH %RDUG DV SURYLGLQJ HYLGHQFH             HPSOR\HHVEHOLHYHGLQJRRGIDLWKWKDWWKHLUZRUNFRQGLWLRQV
VXSSRUWLQJWKHHPSOR\HHVjEHOLHIZHUHLQVXIILFLHQWWRVXSSRUW            ZHUH DEQRUPDOO\ GDQJHURXV DQG WKDW WKLV EHOLHI ZDV D
WKH%RDUGjVILQGLQJ8WLOL]LQJWKHVWDQGDUGRIUHYLHZZLWK              FRQWULEXWLQJFDXVHRIWKHZRUNVWRSSDJH:HILQGWKDWWKHUH
ZKLFKWKLVFRXUWH[DPLQHV1/5%IDFWILQGLQJWKLVDUJXPHQW               LVVXFKHYLGHQFH
ZRXOGUHTXLUHXVWRKROGWKDWWKH%RDUGjVGHWHUPLQDWLRQZDV
QRW VXSSRUWHG E\ mVXEVWDQWLDO HYLGHQFH RQ WKH UHFRUG                 716 PDNHV D ZHOOGRFXPHQWHG DUJXPHQW WKDW WKH
FRQVLGHUHGDVDZKROHl86&I:HDJUHH            GDQJHURXVZRUNLQJFRQGLWLRQFODLPVZHUHRQO\DSUHWH[WIRU
ZLWKWKLVDUJXPHQW                                                    WKH VWULNLQJ HPSOR\HHVj DFWXDO HFRQRPLF PRWLYDWLRQV  ,Q
                                                                         VXSSRUWRIWKLVFRQWHQWLRQ716SRLQWVWRWKHWLPLQJRIWKHMRE
  :HILUVWDGGUHVV716jVDUJXPHQWWKDWWKH%RDUGFRXOGQRW              DFWLRQ DW WKH H[SLUDWLRQ RI WKH HPSOR\HHVj FROOHFWLYH
DV D PDWWHU RI ODZ ILQG REMHFWLYH HYLGHQFH WR VXSSRUW WKH     EDUJDLQLQJ DJUHHPHQW DW D WLPH ZKHQ QHJRWLDWLRQV ZLWK
HPSOR\HHVj EHOLHI LQ WKH IDFH RI UHJXODWRU\ QRQDFWLRQ           PDQDJHPHQWVHHPHGVWDOOHG7KH&RPSDQ\DOVRDOOHJHVWKDW
+RZHYHUEHIRUHDGGUHVVLQJWKLVDUJXPHQWLWLVQHFHVVDU\WR             LWUHFHLYHGQRRIILFLDOFKDOOHQJHVE\HPSOR\HHVRUWKH8QLRQ
UHYLHZ WKH QXFOHDU UHJXODWRU\ VFKHPH LQ JHQHUDO DQG WKH          WR KHDOWK DQG VDIHW\ FRQGLWLRQV DW WKH SODQW XQWLO DIWHU WKH
DJHQFLHVjDFWLRQVZLWKUHVSHFWWR716jVRSHUDWLRQV                    0DUFKVWULNHYRWH)XUWKHUWKH&RPSDQ\FLWHV8QLRQ
                                                                         GLVFXVVLRQVDQGJUDIILWLSODFHGRQ716SURSHUW\DVHYLGHQFH
  $V SDUW RI WKH FRPSOHWH IHGHUDO SUHHPSWLRQ RI QXFOHDU          WKDW WKH 8QLRQ ZDV IRFXVHG RQ HFRQRPLF PDWWHUV DQG QRW
VDIHW\6LONZRRG Y .HUU0F*HH &RUS  86             ZRUNSODFH VDIHW\ DW WKH WLPH RI WKH YRWH  )LQDOO\ WKH
IHGHUDOJRYHUQPHQWRFFXSLHVHQWLUHILHOGRIQXFOHDU              &RPSDQ\ DOOHJHV WKDW UDQN DQG ILOH 8QLRQ PHPEHUV ZHUH
VDIHW\ 3DF *DV DQG (OHF &R Y 6WDWH (QHUJ\ 5HV            XQDZDUHRIPXFKRIWKHmREMHFWLYHHYLGHQFHlRIGDQJHUWKDW
&RQVHUYDWLRQ 	 'HY &RPPjQ  86   
       716,QFY1/5%                     1RV        1RV                        716,QFY1/5%            

WKH%RDUGFLWHVDQGVRHYHQLIWKHUHZHUHVXFKHYLGHQFHLW                   ,QVKRUWWKHHYLGHQFHLVVWURQJO\VHWRXWE\ERWKVLGHVLQ
FRXOGQRWKDYHEHHQDPRWLYDWLQJIDFWRUIRUWKHZDONRXW                   WZHQW\ \HDUV RI GRFXPHQWV WUDQVFULSWV DQG WHVWLPRQ\
                                                                            +RZHYHU JLYHQWKHVWDQGDUGRIUHYLHZWKDWFRQVWUDLQVWKLV
   7KH SLFWXUH SDLQWHG E\ WKH %RDUGjV SURIIHUHG HYLGHQFH             FRXUWLQH[DPLQLQJIDFWXDOGHWHUPLQDWLRQVRIWKH%RDUGWKH
FRXOGQRWEHPRUHGLIIHUHQW7KH%RDUGFLWHVIUHTXHQWVDIHW\               PHUHIDFWWKDWHYLGHQFHJRHVERWKZD\VGRHVQRWKHOS716jV
LQVSHFWLRQV DQG UHSRUWV RI FRPSODLQWV PDGH E\ WKH 8QLRQ             FDVH  ,QVWHDG LQ RUGHU WR RYHUWXUQ WKH %RDUGjV IDFWXDO
VLQFH2FWREHUDVHYLGHQFHRIWKHHPSOR\HHVjFRQFHUQIRU                ILQGLQJV ZLWK UHVSHFW WR WKH HPSOR\HHVj EHOLHIV DQG
WKHLUVDIHW\)XUWKHUWKH%RDUGQRWHVWKDWWKHXOWLPDWXPVHQW             PRWLYDWLRQVZHZRXOGKDYHWREHDEOHWRVD\WKDWWKH%RDUGjV
E\WKH8QLRQWRWKH&RPSDQ\RQ0DUFKVWDWHGWKDW                   GHWHUPLQDWLRQLVQRWVXSSRUWHGE\mVXEVWDQWLDOHYLGHQFHRQWKH
LIWKHHPSOR\HHVZDONHGRXWLWZRXOGEHEHFDXVHRIDOOHJHG                 UHFRUGFRQVLGHUHGDVDZKROHl86&I
GDQJHUV LQ WKH ZRUNSODFH  7KH %RDUG FLWHV QXPHURXV                 :HDUHXQDEOHWRGRWKDWKHUH
GLVFXVVLRQV DW 8QLRQ PHHWLQJV DQG QXPHURXV ZRUULHV
H[SUHVVHGE\HPSOR\HHVDERXWWKHGDQJHUVFDXVHGE\'8GXVW                     :KHWKHUWKH%RDUGHUUHGLQILQGLQJREMHFWLYHHYLGHQFHRI
LQWKHIDFWRU\7KH8QLRQLQLWVEULHIVWDWHV                                 DEQRUPDO GDQJHU WR H[LVW LQ D SODQW UHJXODWHG
                                                                                 PRQLWRUHGDQGSHUPLWWHGWRFRQWLQXHRSHUDWLRQE\WKH
  ,QWKHSHULRGOHDGLQJXSWRWKHZRUNVWRSSDJHHPSOR\HHV                       1XFOHDU 5HJXODWRU\ &RPPLVVLRQ DQG LWV VWDWH
  NQHZWKDWGXHWRWKH&RPSDQ\jVZRHIXOO\LQDGHTXDWH                            FRXQWHUSDUW
  GXVW FRQWURO SURJUDP WKH\ ZHUH LQJHVWLQJ LQRUGLQDWH
  TXDQWLWLHV RI '8 DQG WKDW VHYHUDO RI WKHP ZHUH                     $VPHQWLRQHGDERYHLQWKHFRXUVHRIILQGLQJWKDW
  H[SHULHQFLQJ GLVWXUELQJ PHGLFDO V\PSWRPV DVVRFLDWHG                   DSSOLHGWRWKHZRUNVWRSSDJHDW716WKH%RDUGIRXQGWKDWWKH
  ZLWK NLGQH\ G\VIXQFWLRQ  716 LWVHOI EHJDQ WR LQIRUP              HPSOR\HHVjJRRGIDLWKEHOLHILQWKHH[LVWHQFHRIDEQRUPDOO\
  VRPHHPSOR\HHVWKDWWKH\KDGKLJKOHYHOVRIXUDQLXPLQ                    GDQJHURXV FRQGLWLRQV ZDV VXSSRUWHG E\ mDVFHUWDLQDEOH
  WKHLUXULQH7KHVWHS716WRRNLQUHVSRQVHWRWKHVH
  GHYHORSPHQWV    ZDV WR LPSOHPHQW DQ REYLRXVO\
  LQDGHTXDWHUHVSLUDWRUSURJUDPZKLFKRQO\PDGHLWPRUH
  DSSDUHQWWKDWWKHHPSOR\HHVjKHDOWKZDVLQJUDYHSHULO                        VRRW ZRXOG PDNH KLV KDLU VWLII DV EULOOR KH ZRUH SOXJV WR SUHYHQW
                                                                                 GLUW IURP HQWHULQJ KLV HDUVl        $QRWKHU HPSOR\HH NHSW D
                                                                                 WRRWKEUXVK DW KLV ZRUN VWDWLRQ WR UHPRYH GXVW\ SDUWLFOHV ZKLFK
                                                                                ORGJHG LQ KLV WHHWK <HW DQRWKHU WHVWLILHG KRZ VKH VFUXEEHG KHU
      $QRWKHU GHVFULSWLRQ WKRXJK DQ DGPLWWHGO\ RQHVLGHG RQH EDVHG            VNLQ ZLWK D EXIILQJ SDG DW WKH HQG RI WKH GD\ WR UHPRYH WKH EODFN
ODUJHO\ RQ HYLGHQFH LQ WKH UHFRUG FDQ EH IRXQG LQ & sRKQ &LFHUR 716          VSHFNV IURP KHU SRUHV :KHQ VKH DVNHG 716
 5HVLGHQW 6DIHW\
,QF o 7KH 1DWLRQDO /DERU 5HODWLRQV %RDUGjV )DLOHG 9LVLRQ RI :RUNHU              2IILFHU sLP %DUORZ ZKHWKHU WHVWV FRXOG EH SHUIRUPHG WR VDPSOH
6HOI+HOS   WR   (VFDSH   /RQJWHUP    +HDOWK   7KUHDWV   IURP   :RUNSODFH        WKH EODFN PDWHULDO WKDW LQILOWUDWHG WKH ZRUNHUV
 QRVWULOV KH WROG
&DUFLQRJHQV DQG 7R[LQV     6WHWVRQ / 5HY                        KHU WKDW VXFK D WHVW ZRXOG EH WRR FRVWO\ 716
 SODQW HQJLQHHU
                                                                                 DFNQRZOHGJHG WKDW DW WKH HQG RI WKH ZRUNGD\ WKH IRXQGU\
          $W WKH HQG RI D ZRUNGD\ LQ WKH FRPSDQ\
V IRXQGU\ WKH                  HPSOR\HHV ORRNHG OLNH FRDO PLQHUVl
     HPSOR\HHV
 IDFHV DQG RWKHU H[SRVHG SRUWLRQV RI WKHLU ERGLHV ZHUH                 &RQGLWLRQV ZHUH QR EHWWHU LQ WKH SHQHWUDWRU VKRS 2QH
     EODFN IURP WKH GXVW VRRW DQG VPRNH 'XULQJ RQH SKDVH RI WKH               HPSOR\HH WHVWLILHG WKDW ZLWK WKH VKRS GRRU RSHQHG KH FRXOG VHH
     SURGXFWLRQ SURFHVV HPSOR\HHV SDFNHG GHSOHWHG XUDQLXP LQ WKH                GXVW PRWHV VXVSHQGHG LQ WKH DLU +H FRXOG QRW KRZHYHU VHH
     IRUP RI JUHHQVDOW D SRZGHU\ KHDY\ UDGLRDFWLYH FRPSRXQG                 WKH LQYLVLEOH FRQFHQWUDWLRQV RI DOSKD SDUWLFOHV ZKLFK HPDQDWHG
     LQWR SRWV E\ KDQG 7KH UDGLRDFWLYH PL[WXUH URXWLQHO\ IOHZ XS                IURP WKH DLUERUQH FRQWDPLQDQWV 6PRNH IURP WKH IXUQDFH DQG
     IURP WKH SRWV DQG VHWWOHG LQWR HPSOR\HHV
 HDUV QRVWULOV DQG               WKH IRUJH FRQWULEXWHG WR WKH KD]\ DQG FRQWDPLQDWHG
     PRXWKV 0DQ\ HPSOR\HHV GLVFKDUJHG EODFN PXFXV ZKHQ WKH\                     DWPRVSKHUH DQ DWPRVSKHUH FRROHG E\ PLVWV EHDULQJ XUDQLXP
     VQHH]HG RU EOHZ WKHLU QRVHV $Q RSHUDWRU WHVWLILHG WKDW WKH EODFN          PHWDO VSHFNV ZKLFK VSUD\HG WKH RSHUDWRUV
 IDFHV DQG FORWKLQJ
