       5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
            3XUVXDQW WR 6L[WK &LUFXLW 5XOH                  8QLWHG6WDWHVY%XUWRQ                         1R
    (/(&7521,& &,7$7,21  )(' $SS $ WK &LU
                )LOH 1DPH DD
                                                          ',675,&7 2) 7(11(66(( 0HPSKLV 7HQQHVVHH IRU
                                                          $SSHOODQW  &KULVWRSKHU ( &RWWRQ $66,67$17 81,7('
                                                          67$7(6$77251(<0HPSKLV7HQQHVVHHIRU$SSHOOHH
81,7('67$7(6&28572)$33($/6
                                                                             BBBBBBBBBBBBBBBBBBBBB
              )257+(6,;7+&,5&8,7
                BBBBBBBBBBBBBBBBB                                             $0(1'('23,1,21
                                                                             BBBBBBBBBBBBBBBBBBBBB

 81,7(' 67$7(6 2) $0(5,&$       ;                           521$/'/((*,/0$1&LUFXLWsXGJH$IHGHUDOJUDQG
           3ODLQWLII$SSHOOHH                           MXU\LQGLFWHG'ZLJKW/%XUWRQIRUSRVVHVVLQJILYHJUDPVRU
                                                         PRUH RI FRFDLQH EDVH ZLWK WKH LQWHQW WR GLVWULEXWH DQG IRU
                                     1R         SRVVHVVLQJDILUHDUPERWKDVDIHORQDQGLQIXUWKHUDQFHRIGUXJ
            Y                                           WUDIILFNLQJ  $IWHU WKH GLVWULFW FRXUW GHQLHG KLV PRWLRQ WR
                                   !                      VXSSUHVVWKHHYLGHQFHREWDLQHGGXULQJD'HFHPEHU
                                                         VHDUFK RI KLV SHUVRQ DQG DXWRPRELOH %XUWRQ FRQGLWLRQDOO\
 ':,*+7 / %85721                
         'HIHQGDQW$SSHOODQW                            SOHGJXLOW\WRDOOEXWWKHFKDUJHRIEHLQJDIHORQLQSRVVHVVLRQ
                                                          RIDILUHDUP7KHGLVWULFWFRXUWWKHQVHQWHQFHGKLPWR
                                 1                        PRQWKVRILPSULVRQPHQWIROORZHGE\\HDUVRIVXSHUYLVHG
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW        UHOHDVH%XUWRQDSSHDOVFKDOOHQJLQJWKHGLVWULFWFRXUWjVGHQLDO
    IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDWsDFNVRQ     RIKLVPRWLRQWRVXSSUHVV)RUWKHUHDVRQVVHWIRUWKEHORZZH
  1RnsDPHV'7RGG&KLHI'LVWULFWsXGJH       $)),50WKHMXGJPHQWRIWKHGLVWULFWFRXUW
                  $UJXHG0D\                                         ,%$&.*5281'

            'HFLGHGDQG)LOHGsXO\              $ )DFWXDOEDFNJURXQG

 %HIRUH.583$16.<6,/(5DQG*,/0$1&LUFXLW             2IILFHU *DU\ 'DYLGVRQ ZDV RQ SDWURO LQ +HQGHUVRQ
                   sXGJHV                                7HQQHVVHHRQ'HFHPEHUZKHQ$VVLVWDQW3ROLFH&KLHI
                                                          'HQQLV +DOWRP WROG KLP WKDW WKH GHSDUWPHQW KDG UHFHLYHG
                  BBBBBBBBBBBBBBBBB                       LQIRUPDWLRQ WKDW WZR EODFN PHQ ZHUH VHOOLQJ QDUFRWLFV RQ
                                                          %DXJKQ 6WUHHW  $OWKRXJK $VVLVWDQW &KLHI +DOWRP KDG
                       &2816(/                            UHFHLYHG WKLV LQIRUPDWLRQ IURP D UHOLDEOH FRQILGHQWLDO
                                                          LQIRUPDQW2IILFHU'DYLGVRQZDVQRWDZDUHRIWKHVRXUFHDW
$5*8('  'RULV $ 5DQGOH+ROW 2)),&( 2) 7+(       WKHWLPH,QGHHGKHVXUPLVHGWKDWWKHLQIRUPDWLRQZDVEDVHG
)('(5$/ 38%/,& '()(1'(5 )25 7+( :(67(51              XSRQ DQ DQRQ\PRXV WLS  2IILFHU 'DYLGVRQ GLG NQRZ
',675,&7 2) 7(11(66(( 0HPSKLV 7HQQHVVHH IRU       KRZHYHUWKDW%DXJKQ6WUHHWZDVDKLJKFULPHDUHD
$SSHOODQW9LFWRU/,Y\$66,67$1781,7('67$7(6
$77251(< sDFNVRQ 7HQQHVVHH IRU $SSHOOHH             $W DSSUR[LPDWHO\  SP WKDW HYHQLQJ 2IILFHU
21 %5,()  0 'LDQQH 6PRWKHUV 2)),&( 2) 7+(      'DYLGVRQ DUULYHG DW %DXJKQ 6WUHHW  +H FLUFOHG DURXQG D
)('(5$/ 38%/,& '()(1'(5 )25 7+( :(67(51              SDUNLQJORWDQGQRWLFHGDQDXWRPRELOHWXUQRQWRWKHVWUHHW

                            
1R                       8QLWHG6WDWHVY%XUWRQ               8QLWHG6WDWHVY%XUWRQ                      1R

7KHDXWRPRELOHFDPHWRDVWRSDSSUR[LPDWHO\WHQIHHWIURPD          % 3URFHGXUDOEDFNJURXQG
mQRSDUNLQJlVLJQ7ZREODFNPHQJRWLQWRWKHEDFNVHDW
7KHDXWRPRELOHGLGQRWGHSDUW$IWHUZDLWLQJDIHZVHFRQGV           7KHJUDQGMXU\UHWXUQHGDWKUHHFRXQWLQGLFWPHQWDJDLQVW
2IILFHU'DYLGVRQSURFHHGHGWRZDUGWKHVWRSSHGDXWRPRELOH             %XUWRQ  &RXQW 2QHFKDUJHGKLPZLWKYLRODWLQJ86&
LQ KLV SROLFH FUXLVHU GULYLQJ XS LPPHGLDWHO\ EHKLQG LW     E\SRVVHVVLQJILYHJUDPVRUPRUHRIFRFDLQHEDVHZLWK
6HYHUDO PRUH VHFRQGV SDVVHG ZLWK QR PRYHPHQW E\ HLWKHU       WKHLQWHQWWRGLVWULEXWH7KHVHFRQGDQGWKLUGFRXQWVFKDUJHG
YHKLFOH DW ZKLFK SRLQW 2IILFHU 'DYLGVRQ WXUQHG RQ KLV       %XUWRQ ZLWK YLRODWLRQV RI  86&   DQG  IRU
FUXLVHUjVSROLFHOLJKWV                                             SRVVHVVLQJDILUHDUPLQIXUWKHUDQFHRIGUXJWUDIILFNLQJDQG
                                                                     ZKLOHDIHORQUHVSHFWLYHO\%XUWRQILOHGDPRWLRQWRVXSSUHVV
   2IILFHU'DYLGVRQWKHQH[LWHGKLVFUXLVHUDQGDSSURDFKHGWKH       WKHHYLGHQFHREWDLQHGE\2IILFHU'DYLGVRQGXULQJWKHLQFLGHQW
DXWRPRELOH+HDVNHGWKHGULYHUZKRZDVODWHULGHQWLILHGDV        RQ%DXJKQ6WUHHW$IWHUFRQGXFWLQJDKHDULQJRQWKLVLVVXH
%XUWRQWRSURGXFHKLVGULYHUjVOLFHQVH%XUWRQVXSSOLHGKLV        WKH GLVWULFW FRXUW GHQLHG WKH PRWLRQ  %XUWRQ WKHQ
OLFHQVHDVUHTXHVWHG$FFRUGLQJWR'DYLGVRQKHWKHQDVNHG          FRQGLWLRQDOO\SOHGJXLOW\WR&RXQWV2QHDQG7ZRZLWKWKH
%XUWRQWRVWHSRXWRIWKHDXWRPRELOH$IWHU%XUWRQFRPSOLHG        JRYHUQPHQW GLVPLVVLQJ &RXQW 7KUHH  7KH GLVWULFW FRXUW
2IILFHU 'DYLGVRQ DVNHG KLP VHYHUDO TXHVWLRQV LQFOXGLQJ        VXEVHTXHQWO\VHQWHQFHGKLPWRPRQWKVRILPSULVRQPHQW
ZKHWKHU KH RZQHG WKH DXWRPRELOH DQG ZKHWKHU WKHUH ZDV        IROORZHGE\\HDUVRIVXSHUYLVHGUHOHDVH7KLVWLPHO\DSSHDO
DQ\WKLQJLOOHJDOLQVLGH                                             IROORZHG
  %XUWRQZDVWKHQDVNHGLIKHZRXOGFRQVHQWWRDVHDUFKRI                                 ,,$1$/<6,6
WKHDXWRPRELOH+HDJUHHGWRGRVR%XUWRQZDVLQIDFWLQWKH
SURFHVVRIVLJQLQJDFRQVHQWWRVHDUFKIRUPZKHQ$VVLVWDQW              m$GLVWULFWFRXUWjVGHQLDORIDPRWLRQWRVXSSUHVVHYLGHQFH
&KLHI+DOWRPDUULYHGRQWKHVFHQH                                   LVUHYLHZHGXQGHUDK\EULGVWDQGDUG,WVILQGLQJVRIIDFWDUH
                                                                     UHYLHZHG XQGHU WKH µFOHDUO\ HUURQHRXVj VWDQGDUG EXW LWV
  %XUWRQWKHQDFFHGHGWR2IILFHU'DYLGVRQjVUHTXHVWWKDWKH          FRQFOXVLRQVRIODZDUHUHYLHZHGGHQRYRl8QLWHG6WDWHVY
SXW KLV KDQGV RQ KLV KHDG DQG EH SDWWHG GRZQ IRU VDIHW\   2UODQGR)GWK&LUFHUWGHQLHG6&W
SXUSRVHV  ,PPHGLDWHO\ EHIRUH EHJLQQLQJ WKH SDW GRZQ         
2IILFHU'DYLGVRQDVNHG%XUWRQm,VWKHUHDQ\WKLQJRQ\RX,
QHHG WR NQRZ DERXW VXFK DV QHHGOHV RU DQ\WKLQJ LQ WKLV       %XUWRQDUJXHVWKDW2IILFHU'DYLGVRQjV LQLWLDOVWRSRIWKH
QDWXUH"l%XUWRQUHVSRQGHGE\DGPLWWLQJWKDWKHZDVFDUU\LQJ         DXWRPRELOHZDVXQODZIXO7KH)RXUWK$PHQGPHQWKRZHYHU
PDULMXDQDLQKLVSDQWVSRFNHW2IILFHU'DYLGVRQUHWULHYHGWKH       SHUPLWVDQRIILFHUZKRKDVSUREDEOHFDXVHWREHOLHYHWKDWD
EDJRIPDULMXDQDDQGDVNHG%XUWRQm'ZLJKWGR\RXKDYH              WUDIILF YLRODWLRQ LV RFFXUULQJ WR GHWDLQ WKH DXWRPRELOH
DQ\WKLQJHOVH"l%XUWRQUHSOLHGWKDWKHKDGPRUHQDUFRWLFVLQ        UHJDUGOHVVRIWKHRIILFHUjVVXEMHFWLYHPRWLYDWLRQIRUWKHVWRS
KLV VKLUW SRFNHW  2IILFHU 'DYLGVRQ WKHUHXSRQ H[WUDFWHG D    :KUHQY8QLWHG6WDWHV86,QWKLV
VQXII ER[ FRQWDLQLQJ FUDFN FRFDLQH IURP %XUWRQjV VKLUW        FDVH2IILFHU'DYLGVRQREVHUYHGWKHDXWRPRELOHWKDW%XUWRQ
SRFNHW  $IWHU FRPSOHWLQJ WKH SDWGRZQ 2IILFHU 'DYLGVRQ      ZDVGULYLQJSDUNHGQHDUDQRSDUNLQJVLJQ%XUWRQFODLPV
SODFHG%XUWRQXQGHUDUUHVWIRUGUXJSRVVHVVLRQ'XULQJWKH          WKDWKHZDVQRWYLRODWLQJDQ\WUDIILFODZEHFDXVHKHZDVQRW
HQVXLQJVHDUFKRIWKHDXWRPRELOHDILUHDUPZDVGLVFRYHUHG          WHFKQLFDOO\ mSDUNHGl ZLWKLQ WKH PHDQLQJ RI +HQGHUVRQjV
                                                                     PXQLFLSDOSDUNLQJRUGLQDQFH
                                                                      :HILQGWKLVDUJXPHQWXQSHUVXDVLYHIRUWZRUHDVRQV)LUVW
                                                                     %XUWRQIDLOHGWRUDLVHLWLQWKHGLVWULFWFRXUW7KLVFRXUWKDV
1R                         8QLWHG6WDWHVY%XUWRQ                  8QLWHG6WDWHVY%XUWRQ                           1R

KHOGWKDWmDGHIHQGDQWZKRIDLOVWRUDLVHDVSHFLILFLVVXHDVWKH        RFFXSDQWVXQOHVVVRPHWKLQJWKDWRFFXUUHGGXULQJWKHWUDIILF
EDVLVIRUVXSSUHVVLRQKDVZDLYHGWKHULJKWWRUDLVHWKDWLVVXH           VWRSJHQHUDWHGWKHQHFHVVDU\UHDVRQDEOHVXVSLFLRQWRMXVWLI\D
RQDSSHDOl8QLWHG6WDWHVY&ULWWRQ)GWK           IXUWKHU GHWHQWLRQl  ,G DW   %XUWRQ FRQWHQGV WKDW
&LULQWHUQDOTXRWDWLRQPDUNVRPLWWHG,QGHHGLQKLV           m'DYLGVRQDGPLWWHGWKDWRQFHKHJDYH0U%XUWRQjVOLFHQVH
PRWLRQWRVXSSUHVV%XUWRQKLPVHOIUHIHUUHGWRWKHLQFLGHQWLQ           EDFNWRKLPKHFRXOGKDYHVLPSO\JLYHQKLPDFLWDWLRQIRU
TXHVWLRQDVmDQRUGLQDU\WUDIILFVWRS>LQWKLVLQVWDQFHDSDUNLQJ        SDUNLQJLQDQRSDUNLQJ]RQHl$Q\IXUWKHUGHWHQWLRQ%XUWRQ
YLRODWLRQ@    l  %UDFNHWV LQ RULJLQDO  +H DOVR         DUJXHVZDVXQODZIXODEVHQWUHDVRQDEOHVXVSLFLRQWKDWRWKHU
DFNQRZOHGJHG WKDW m>L@Q WKH SUHVHQW FDVHl D SROLFH RIILFHU      FULPLQDODFWLYLW\ZDVDIRRW
VDZmDYHKLFOHZKLFKDSSHDUHGWREHSDUNHGLQDµQRSDUNLQJj
DUHDl                                                                      7KH0HVDFRXUWjVVWDWHPHQWKRZHYHUQRORQJHUDFFXUDWHO\
                                                                         UHSUHVHQWVWKHODZ,Q2KLRY5RELQHWWH86
   6HFRQGWKHWUDIILFODZVRIERWK+HQGHUVRQDQGWKHVWDWHRI           WKH6XSUHPH&RXUWFRQVLGHUHGZKHWKHUDPRWRULVWjV)RXUWK
7HQQHVVHHIDLOWRVXSSRUW%XUWRQjVDUJXPHQW%XUWRQFLWHV               $PHQGPHQWULJKWVZHUHYLRODWHGZKHUHDIWHULQLWLDOO\EHLQJ
RIWKH+HQGHUVRQWUDIILFFRGHIRUWKHSURSRVLWLRQ               VWRSSHGIRUDWUDIILFYLRODWLRQWKHPRWRULVWZDVRUGHUHGRXWRI
WKDWDQDXWRPRELOHPXVWEHOHIWXQDWWHQGHGWREHFRQVLGHUHG              KLVDXWRPRELOHE\WKHSROLFHRIILFHUDQGDVNHGLIKHZRXOG
SDUNHG%XWSURYLGHVQRVXFKGHILQLWLRQ5DWKHULW           FRQVHQWWRDVHDUFKRIWKHYHKLFOHIRULOOHJDOFRQWUDEDQG,G
VHWVIRUWKDQLQGHSHQGHQWUXOHWKDWm>Q@RSHUVRQVKDOOOHDYH             DW%HFDXVHWKHRIILFHUjVTXHVWLRQKDGH[FHHGHGWKH
DQ\ PRWRU YHKLFOH XQDWWHQGHG RQ DQ\ VWUHHW ZLWKRXW ILUVW         VFRSHRIWKHWUDIILFVWRSjVLQLWLDOSXUSRVHWKH2KLR6XSUHPH
VHWWLQJWKHEUDNHVWKHUHRQl0RUHRQSRLQWLVWKHVWDWH          &RXUWKDGUXOHGWKDWWKHFRQVHQWVXEVHTXHQWO\REWDLQHGZDV
VWDWXWH WKDW GHILQHV SDUNLQJ DV mWKH VWDQGLQJ RI D YHKLFOH     LQYDOLG7KH6XSUHPH&RXUWUHYHUVHGKROGLQJWKDWWKH)RXUWK
ZKHWKHURFFXSLHGRUQRWRWKHUZLVHWKDQWHPSRUDULO\IRUWKH              $PHQGPHQWUHTXLUHGRQO\WKDWWKHGHWHQWLRQDQGTXHVWLRQEH
SXUSRVH RI DQG ZKLOH DFWXDOO\ HQJDJHG LQ ORDGLQJ RU              UHDVRQDEOHXQGHUWKHSDUWLFXODUIDFWVRIWKHFDVH,GDW
XQORDGLQJl  7HQQ &RGH $QQ    %RWK               )ROORZLQJ5RELQHWWHWKLVFRXUWLQ8QLWHG6WDWHVY*XLPRQG
+HQGHUVRQDQGWKHVWDWHRI7HQQHVVHHEDQSDUNLQJZKHUHD                  )G  WK &LU  UHDG 0HVD WR DSSO\ RQ LWV
VLJQSURKLELWVLW+HQGHUVRQ7Q2UGLQDQFHVFK            IDFWVnZKHUHWKHPRWRULVWjVFRQVHQWZDVREWDLQHGRQO\DIWHU
m1R SHUVRQ VKDOO SDUN D YHKLFOH LQ YLRODWLRQ RI DQ\ VLJQ      VKH KDG EHHQ GHWDLQHG LQ D ORFNHG SROLFH FUXLVHU IRU D
SODFHGRUHUHFWHGE\WKHVWDWHRUFLW\l7HQQ&RGH$QQ        FRQVLGHUDEOHSHULRGRIWLPHDIWHUWKHLQLWLDOVWRSnUDWKHUWKDQ
DIRUELGGLQJVWRSSLQJVWDQGLQJRUSDUNLQJ             DV VHWWLQJ IRUWK DQ LQIOH[LEOH UXOH  ,G DW  TXRWLQJ WKH
m>D@W DQ\ SODFH ZKHUH RIILFLDO VLJQV SURKLELW VWRSSLQJl         VWDWHPHQWRIWKH0HVDFRXUWDQGWKHQH[SODLQLQJWKDWmZHUHDG
%HFDXVH KH REVHUYHG WKH DXWRPRELOH GULYHQ E\ %XUWRQ               WKDW SDVVDJH DV DSSO\LQJ WR WKH IDFWV RI WKDW FDVH QRW DV
VWRSSHGQHDUDQRSDUNLQJVLJQZKLOHQRWDFWXDOO\HQJDJHGLQ             KROGLQJWKDWFRQVHQWLVSHUVHLQYDOLGLQDOOFDVHVZKHUHLWLV
ORDGLQJRUXQORDGLQJ2IILFHU'DYLGVRQKDGSUREDEOHFDXVHWR             REWDLQHGDIWHUWKHFRQFOXVLRQRIOHJLWLPDWHGHWHQWLRQl
EHOLHYHWKDW%XUWRQZDVYLRODWLQJORFDODQGVWDWHWUDIILFODZV
                                                                           :HUHFRJQL]HWKDWWKHPRUHUHFHQWFDVHRI8QLWHG6WDWHVY
  %XUWRQDUJXHVDOWHUQDWLYHO\WKDWHYHQLIWKHLQLWLDOVWRSZDV          6PLWK)GWK&LUPD\KDYHFUHDWHGVRPH
MXVWLILHG LWV VFRSH H[FHHGHG WKDW ZKLFK LV FRQVWLWXWLRQDOO\      FRQIXVLRQ LQ WKLV UHJDUG  ,Q 6PLWK WKLV FRXUW XSKHOG WKH
SHUPLVVLEOH+HUHOLHVRQ8QLWHG6WDWHVY0HVD)G            VXSSUHVVLRQ RI HYLGHQFH REWDLQHG GXULQJ WKH VHDUFK RI DQ
WK&LUZKHUHWKLVFRXUWVWDWHGm2QFHWKHSXUSRVHV             DXWRPRELOHZKHUHWKHRIILFHUKDGFRPSOHWHGWKHWUDIILFVWRS
RIWKHLQLWLDOWUDIILFVWRSZHUHFRPSOHWHGWKHUHLVQRGRXEW            DQGKDGQRUHDVRQDEOHVXVSLFLRQWKDWRWKHUFULPLQDODFWLYLW\
WKDW WKH RIILFHU FRXOG QRW IXUWKHU GHWDLQ WKH YHKLFOH RU LWV   ZDVDIRRW\HWGHWDLQHGWKHPRWRULVWXQWLODmGUXJGRJlFRXOG
1R                        8QLWHG6WDWHVY%XUWRQ                   8QLWHG6WDWHVY%XUWRQ                        1R

LQVSHFW WKH DXWRPRELOH  7KH FRXUW VWDWHG m$OWKRXJK             PRUHTXHVWLRQVE\DSROLFHRIILFHUWKDQDUHQHFHVVDU\WRLVVXH
*XLPRQG GLG OLPLW 0HVD WR LWV IDFWV LW GLG VR RQO\ ZLWK     DWUDIILFFLWDWLRQWKH6HYHQWK&LUFXLWKDVRSLQHG
UHVSHFWWRWKHLVVXHRIWKHYDOLGLW\RIFRQVHQWWRVHDUFKZKLFK
LV REWDLQHG DIWHU WKH FRQFOXVLRQ RI DQ LQLWLDO GHWHQWLRQ           4XHVWLRQV WKDW KROG SRWHQWLDO IRU GHWHFWLQJ FULPH \HW
*XLPRQG GLG QRW DIIHFW 0HVD ZLWK UHVSHFW WR WKH LVVXH RI          FUHDWHOLWWOHRUQRLQFRQYHQLHQFHGRQRWWXUQUHDVRQDEOH
UHDVRQDEOHVXVSLFLRQl,GDWQFLWDWLRQRPLWWHG                  GHWHQWLRQ LQWR XQUHDVRQDEOH GHWHQWLRQ  7KH\ GR QRW
                                                                            VLJQDO RU IDFLOLWDWH RSSUHVVLYH SROLFH WDFWLFV WKDW PD\
  7KHFUXFLDOGLIIHUHQFHEHWZHHQWKHIDFWVRI6PLWKDQGWKRVH               EXUGHQWKHSXEOLFnIRUDOOVXVSHFWVHYHQWKHJXLOW\RQHV
RI*XLPRQGRUWKHSUHVHQWFDVHLVWKDWWKHSROLFHRIILFHULQ                PD\ SURWHFW WKHPVHOYHV IXOO\ E\ GHFOLQLQJ WR DQVZHU
6PLWKVHDUFKHGWKHVWRSSHGDXWRPRELOHZLWKRXWWKHPRWRULVWjV                1RUGRWKHTXHVWLRQVIRUFLEO\LQYDGHDQ\SULYDF\LQWHUHVW
FRQVHQW7KLVIDFWDOVRGLVWLQJXLVKHVWKHLQVWDQWFDVHIURPWKH            RUH[WUDFWLQIRUPDWLRQZLWKRXWWKHVXVSHFWVjFRQVHQW
GHFLVLRQE\WKH6XSUHPH&RXUWLQ.QRZOHVY,RZD86
ZKLFKKHOG WKDW WKH )RXUWK $PHQGPHQW GLG QRW                8QLWHG 6WDWHV Y &KLOGV  )G   WK &LU HQ
SHUPLW DQ RIILFHU WR VWRS D PRWRULVW IRU D WUDIILF YLRODWLRQ LVVXH     EDQFFHUWGHQLHG6&W
D FLWDWLRQ DQG WKHQ VHDUFK WKH DXWRPRELOH ZLWKRXW WKH
PRWRULVWjV FRQVHQW SXUVXDQW WR D VWDWH VWDWXWH WKDW DXWKRUL]HG            ,Q WKLV FDVH DIWHU %XUWRQ JDYH 2IILFHU 'DYLGVRQ D YDOLG
VHDUFKHV LQFLGHQW WR FLWDWLRQV ,Q FRQWUDVW 2IILFHU 'DYLGVRQ           GULYHUjVOLFHQVHKHZDVDVNHGRQO\DKDQGIXORITXHVWLRQV
VRXJKW DQG REWDLQHG %XUWRQjV FRQVHQW WR D VHDUFK RI WKH                 LQFOXGLQJ ZKHWKHU KH ZRXOG FRQVHQW WR D VHDUFK RI WKH
DXWRPRELOH 0RUH UHFHQW 6XSUHPH &RXUW SUHFHGHQW WR ZKLFK               DXWRPRELOH7KHUHFRUGSURYLGHVQRUHDVRQWRVXVSHFWHLWKHU
ZH WXUQ EHORZ PDNHV WKH FRQWLQXLQJ YLWDOLW\ RI WKLV                    WKDWWKHVHTXHVWLRQVZHUHXQXVXDOO\LQWUXVLYHRUWKDWDVNLQJ
GLVWLQFWLRQ TXHVWLRQDEOH      6HH 7KRPDV < 'DYLHV 7KH                WKHPPDGHWKLVWUDIILFVWRSDQ\PRUHFRHUFLYHWKDQDW\SLFDO
)LFWLRQDO &KDUDFWHU RI /DZDQG2UGHU 2ULJLQDOLVP $ &DVH                WUDIILFVWRS5RELQHWWH86DWKROGLQJWKDWDVNLQJD
6WXG\ RI WKH 'LVWRUWLRQV DQG (YDVLRQV RI )UDPLQJ(UD $UUHVW             GHWDLQHGPRWRULVWZKHWKHUKHZRXOGFRQVHQWWRDVHDUFKRIKLV
'RFWULQH LQ $WZDWHU Y /DJR 9LVWD  :DNH )RUHVW / 5HY               DXWRPRELOHIRUFRQWUDEDQGHYHQDIWHUKHKDGSURGXFHGDYDOLG
  Q  m>7@KH FRPELQDWLRQ RI $WZDWHU DQG                 GULYHUjV OLFHQVH GLG QRW QHFHVVDULO\ PDNH WKH WUDIILF VWRS
:KUHQ DSSHDU WR HIIHFWLYHO\ QHJDWH WKH &RXUWjV UXOLQJ LQ                XQUHDVRQDEOHLQVFRSHRUGXUDWLRQ8QLWHG6WDWHVY(UZLQ
.QRZOHV Y ,RZD    l %XW ZH KDYH QR QHHG WR H[DPLQH WKDW          )GWK&LUHQEDQFKROGLQJWKDW
TXHVWLRQ LQ WKLV FDVH EHFDXVH %XUWRQ GLG LQ IDFW DJUHH WR WKH           ZKHUH SROLFH RIILFHUV KDG VWRSSHG D YHKLFOH EHFDXVH WKH\
VHDUFK RI WKH DXWRPRELOH 5RELQHWWH WKHUHIRUH SURYLGHV WKH              VXVSHFWHGWKDWWKHPRWRULVWZDVLQWR[LFDWHGmLUUHVSHFWLYHRI
DSSURSULDWH IUDPHZRUN IRU DQDO\]LQJ WKH IDFWV KHUH                     ZKHWKHUWKHGHSXWLHVZHUHMXVWLILHGLQGHWDLQLQJ>WKHPRWRULVW@
                                                                        DIWHUKHVKRZHGQRVLJQVRILQWR[LFDWLRQDQGHYHQLIWKH\KDG
  7KLV OHDYHV XV WR DVFHUWDLQ ZKHWKHU DVNLQJ %XUWRQ LI KH      QRW DIWHU DSSURDFKLQJ >WKH PRWRULVW@ REVHUYHG FRQGLWLRQV
ZRXOGFRQVHQWWRDVHDUFKRIWKHDXWRPRELOHZDVDUHDVRQDEOH            UDLVLQJDUHDVRQDEOHDQGDUWLFXODEOHVXVSLFLRQWKDWFULPLQDO
UHTXHVW XQGHU WKH FLUFXPVWDQFHV  5HFHQW 6XSUHPH &RXUW           DFWLYLW\ZDVµDIRRWjWKH\ZHUHHQWLWOHGWRDVN>WKHPRWRULVW@
SUHFHGHQW VXJJHVWV WKDW WKLV LQTXLU\ ZDV UHDVRQDEOH  ,Q        IRUSHUPLVVLRQWRVHDUFKKLVYHKLFOHl&KLOGV)GDW
$WZDWHUY&LW\RI/DJR9LVWD86WKH&RXUW           XSKROGLQJWKHODZIXOQHVVRIDVHDUFKWKHFRQVHQWIRUZKLFK
KHOGWKDWWKH)RXUWK$PHQGPHQWSHUPLWVDSROLFHRIILFHUWR              ZDVREWDLQHGE\DVNLQJDPRWRULVWWKUHHTXHVWLRQVXQUHODWHG
HIIHFW D FXVWRGLDO DUUHVW RI VRPHRQH IRU D PLVGHPHDQRU          WRWKHSXUSRVHRIWKHWUDIILFVWRS
SDUNLQJ YLRODWLRQ HYHQ WKRXJK WKH RIIHQVH LV QRW RQH WKDW
SHUPLWV WKH YLRODWRUjV DUUHVW XQGHU VWDWH ODZ  ,G DW       3DUWLFXODUO\ZKHUHDVKHUHWKHWUDIILFVWRSWRRNSODFHRQD
$SSO\LQJ$WZDWHUWRWKHFRQWH[WRIDPRWRULVWEHLQJDVNHG               VWUHHWNQRZQWRWKHSROLFHDVDKLJKFULPHDUHDZHEHOLHYH
1R                       8QLWHG6WDWHVY%XUWRQ                8QLWHG6WDWHVY%XUWRQ                       1R

WKDWDVNLQJDIHZTXHVWLRQVDERXWLOOHJDODFWLYLW\WRWKHGULYHU      >WKH &DOLIRUQLD ODZ WKDW@ SURKLELWV FDUU\LQJ D FRQFHDOHG
RIDQDXWRPRELOHVWRSSHGIRUDWUDIILFYLRODWLRQDWSP        ILUHDUPLQDYHKLFOHZLWKRXWDSHUPLW>7KHRIILFHU@FRXOG
LVQRWXQUHDVRQDEOH6HH,OOLQRLVY:DUGODZ86          VHDUFK >WKH GHIHQGDQWjV@ FDU DQG FRQWDLQHUV ZLWKLQ LW WKDW
m>2@IILFHUVDUHQRWUHTXLUHGWRLJQRUHWKHUHOHYDQW       PLJKWFRQFHDODILUHDUPl8QLWHG6WDWHVY'DYLV1R
FKDUDFWHULVWLFV RI D ORFDWLRQ LQ GHWHUPLQLQJ ZKHWKHU WKH       :/DWWK&LU2FW
FLUFXPVWDQFHVDUHVXIILFLHQWO\VXVSLFLRXVWRZDUUDQWIXUWKHU          XSKROGLQJWKHVHDUFKDQGDUUHVWRIDSHUVRQZKRZKHQDVNHG
LQYHVWLJDWLRQl:HWKHUHIRUHFRQFOXGHWKDWWKHVFRSHDQG           E\SROLFHRIILFHUVZKHWKHUVKHZDVFDUU\LQJGUXJVUHSOLHGm,
GXUDWLRQRIWKHWUDIILFVWRSLQWKLVFDVHZDVUHDVRQDEOHZKLFK       JXHVV\RXDUHJRLQJWRILQGRXWVRRQHURUODWHUl
YDOLGDWHV%XUWRQjVFRQVHQWWRVHDUFKWKHDXWRPRELOH
                                                                                          ,,,&21&/86,21
  1HLWKHU%XUWRQjVPRWLRQLQWKHGLVWULFWFRXUWQRUKLVEULHIRQ
DSSHDODUHFOHDUDVWRZKHWKHUKHDOVRVHHNVWRVXSSUHVVWKH            )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH
HYLGHQFHRIWKHPDULMXDQDDQGFRFDLQHEDVHWKDWZDVRQKLV            MXGJPHQWRIWKHGLVWULFWFRXUW
SHUVRQ7KHGLVWULFWFRXUWKRZHYHUDGGUHVVHGWKLVLVVXHDQG
FRQFOXGHGWKDWWKHUHZDVQRUHDVRQWRVXSSUHVVWKHHYLGHQFH
:HDJUHH,Q3HQQV\OYDQLDY0LPPV86
WKH6XSUHPH&RXUWKHOGmWKDWRQFHDPRWRUYHKLFOHKDVEHHQ
ODZIXOO\ GHWDLQHGIRUDWUDIILFYLRODWLRQWKHSROLFHRIILFHUV
PD\ RUGHU WKH GULYHU WR JHW RXW RI WKH YHKLFOH ZLWKRXW
YLRODWLQJ WKH )RXUWK $PHQGPHQWjV SURVFULSWLRQ RI
XQUHDVRQDEOHVHDUFKHVDQGVHL]XUHVl,GDWQ2IILFHU
'DYLGVRQ GLG MXVW WKDW DQG WKHQ DVNHG %XUWRQ m,V WKHUH
DQ\WKLQJ RQ \RX , QHHG WR NQRZ DERXW VXFK DV QHHGOHV RU
DQ\WKLQJ LQ WKLV QDWXUH"l  7KLV TXHVWLRQ ZDV UHDVRQDEO\
UHODWHGWRWKHRIILFHUjVVDIHW\,QUHVSRQVH%XUWRQYROXQWDULO\
DGPLWWHGWKDWKHZDVFDUU\LQJQDUFRWLFVRQKLVSHUVRQ
   7KLV DGPLVVLRQ XQGRXEWHGO\ JDYH 2IILFHU 'DYLGVRQ
SUREDEOHFDXVHWRVHDUFKDQGDUUHVW%XUWRQ6HH8QLWHG6WDWHV
Y+DUULV86m$GPLVVLRQVRIFULPH
OLNHDGPLVVLRQVDJDLQVWSURSULHWDU\LQWHUHVWVFDUU\WKHLURZQ
LQGLFLDRIFUHGLELOLW\nVXIILFLHQWDWOHDVWWRVXSSRUWDILQGLQJ
RI SUREDEOH FDXVH WR VHDUFKl 8QLWHG 6WDWHV Y 7RUUHV
*XHYDUD)GWK&LUFRQFOXGLQJ
WKDWZKHUHWKHGHIHQGDQWjVmHQFRXQWHUZLWKWKHRIILFHUVZDV
FRQVHQVXDODWWKHWLPHVKHDGPLWWHGFDUU\LQJGUXJV>@WKLV
DGPLVVLRQSURYLGHGSUREDEOHFDXVHIRUKHUDUUHVWl8QLWHG
6WDWHVY%UDG\)GWK&LUm$IWHU
>WKHGHIHQGDQW@VDLGKHKDGDJXQLQWKHWUXQN>WKHRIILFHU@
KDGSUREDEOHFDXVHWRWKLQNWKDW>WKHGHIHQGDQW@ZDVYLRODWLQJ
