                                                                                5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    *UHQGHOOHWDOY7KH2KLR      1RV                        3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

      6XSUHPH&RXUWHWDO                                                  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                                                                                         )LOH 1DPH DS

WKHLVVXHRIVWDQGLQJ$VWKLV&RXUWZLOOQRWLVVXHDGYLVRU\
RSLQLRQVZHGHFOLQHWRFRPPHQWRQWKHPHULWVRI*UHQGHOOjV          81,7('67$7(6&28572)$33($/6
FRQVWLWXWLRQDOFODLP6HHsRKQVRQY7XUQHU)G
WK&LUQRWLQJWKDWWKHVWDQGLQJUHTXLUHPHQW                            )257+(6,;7+&,5&8,7
KDVEHHQFRQVWUXHGWRSURKLELWDGYLVRU\RSLQLRQV                                        BBBBBBBBBBBBBBBBB
                        ,9&RQFOXVLRQ
  )RUWKHVHUHDVRQVWKLV&RXUWFRQFOXGHVWKDWWKHSODLQWLII         7,027+< s *5(1'(//               ;
DSSHOODQWV DQG FURVVDSSHOOHHV KDYH QR VWDQGLQJ DQG ZH        *(5$/' : 3+,//,36                 
5(9(56(WKHGLVWULFWFRXUWRQWKDWFODLP$VWKHGLVWULFW                      3ODLQWLIIV$SSHOODQWV 
FRXUW ODFNV MXULVGLFWLRQ GXH WR ODFN RI VWDQGLQJ ZH DOVR                                          1RV
$)),50WKHGLVWULFWFRXUWjVGLVPLVVDORIWKLVDFWLRQ                                 &URVV$SSHOOHHV      
                                                                                                           !
                                                                                                          
                                                                                   Y                     
                                                                                                          
                                                                      7+( 2+,2 6835(0( &2857             
                                                                      HWDO                             
                                                                               'HIHQGDQWV$SSHOOHHV 
                                                                                                          
                                                                                    &URVV$SSHOODQWV 
                                                                                                         1
                                                                              $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                             IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
                                                                       1Rn(GPXQG$6DUJXVsU'LVWULFWsXGJH
                                                                                          $UJXHG0DUFK
                                                                                     'HFLGHGDQG)LOHGsXQH
                                                                     %HIRUH&2/(DQG*,/0$1&LUFXLWsXGJHV$/'5,&+
                                                                                        'LVWULFWsXGJH




                                                                         
                                                                          7KH +RQRUDEOH $QQ $OGULFK 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
                                                                     1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ



                                                                                                        
     *UHQGHOOHWDOY7KH2KLR       1RV         1RV         *UHQGHOOHWDOY7KH2KLR        
      6XSUHPH&RXUWHWDO                                                                               6XSUHPH&RXUWHWDO

                     BBBBBBBBBBBBBBBBB                                 GLVWLQJXLVKDEOH IURP WKH SUHVHQW FDVH  ,Q )HOGPDQ WKH
                                                                       SODLQWLII PDGH D JHQHUDO FRQVWLWXWLRQDO FKDOOHQJH WR WKH
                           &2816(/                                     'LVWULFWRI&ROXPELDEDUDSSOLFDWLRQUXOH6HH)HOGPDQ
                                                                       86 DW  Q   :KLOH QRW SHUPLWWHG WR FKDOOHQJH WKH
$5*8('7LPRWK\s*UHQGHOO*5(1'(//	6,021                         'LVWULFWRI&ROXPELD&RXUWRI$SSHDOVGHFLVLRQWRGHQ\KLV
&2 &OHYHODQG 2KLR IRU $SSHOODQWV  (OLVH : 3RUWHU        DSSOLFDWLRQ)HOGPDQFRXOGQHYHUWKHOHVVUHDSSO\WRVLWIRUWKH
2)),&( 2) 7+( $77251(< *(1(5$/ &ROXPEXV                         'LVWULFWRI&ROXPELDEDUH[DPLQDWLRQ$VWKH7HQWK&LUFXLW
2KLR IRU $SSHOOHHV  21 %5,()  7LPRWK\ s *UHQGHOO         QRWHV)HOGPDQmVWLOOKDGDQLQWHUHVWLQSUDFWLFLQJODZLQWKH
*5(1'(// 	 6,021 &2 &OHYHODQG 2KLR *HUDOG :                VWDWHRUGLVWULFWLQYROYHGDQGWKHUHIRUHKDGVWDQGLQJWRDVVHUW
3KLOOLSV $YRQ 2KLR IRU $SSHOODQWV  (OLVH : 3RUWHU        WKDW WKH UHVWULFWLYH EDU DGPLVVLRQ UXOHV VKRXOG EH GHFODUHG
0LFKDHO s 5HQQHU 2)),&( 2) 7+( $77251(<                        XQFRQVWLWXWLRQDOl)DFLR)GDW6DLGGLIIHUHQWO\
*(1(5$/&ROXPEXV2KLRIRU$SSHOOHHV                                EHFDXVH)HOGPDQZDVSURKLELWHGIURPDGPLVVLRQWRWKHEDU
                                                                       KHZDVVXEMHFWWRWKHmFRQWLQXLQJSUHVHQWDGYHUVHHIIHFWVl
                     BBBBBBBBBBBBBBBBB                                 QHFHVVDU\WRHVWDEOLVKVWDQGLQJIRUGHFODUDWRU\DQGLQMXQFWLYH
                                                                       UHOLHI/\RQV86
                         23,1,21
                     BBBBBBBBBBBBBBBBB                                   ,Q WKLV FDVH KRZHYHU *UHQGHOO FDQQRW HVWDEOLVK VXFK
                                                                       FRQWLQXLQJ SUHVHQW DGYHUVH HIIHFWV  7KH 5RRNHU)HOGPDQ
   $/'5,&+ 'LVWULFW sXGJH  7KH SODLQWLIIDSSHOODQWV DQG        GRFWULQHDQG86&HIIHFWLYHO\IRUHFORVHUHYLHZRI
FURVVDSSHOOHHV 7LPRWK\ *UHQGHOO DQG *HUDOG 3KLOOLSV             WKH2KLR6XSUHPH&RXUWjV GHFLVLRQWRLPSRVHVDQFWLRQVLQ
m*UHQGHOOlEULQJWKLVFDVHDJDLQVWWKHGHIHQGDQWDSSHOOHHV          6WDWH RI 2KLR H[ UHO *UHQGHOO LQ WKH ORZHU IHGHUDO FRXUWV
DQGFURVVDSSHOODQWVWKH2KLR6XSUHPH&RXUWDQGIRXURIWKH           $FFRUGLQJO\ VXFK VDQFWLRQV DUH ILQDO DQG FDQQRW EH
MXVWLFHVVHUYLQJRQWKDW&RXUWmWKH2KLR6XSUHPH&RXUWl             RYHUWXUQHG HYHQ LI 5XOH ;,9   LV ODWHU KHOG IDFLDOO\
VHHNLQJGHFODUDWRU\DQGLQMXQFWLYHUHOLHI*UHQGHOODUJXHVWKDW       XQFRQVWLWXWLRQDO6HH%OXH'LDPRQG&RDO&RY7UVRIWKH
2KLR6XSUHPH&RXUW3UDFWLFH5XOH;,9m5XOH;,9l             80:$ &RPELQHG %HQHILW )XQG n )G n  :/
RUmWKH5XOHlLVXQFRQVWLWXWLRQDORQLWVIDFH YLRODWLQJWKH          DW  WK &LU  QRWLQJ WKDW D FKDQJH LQ
'XH3URFHVV&ODXVHRIWKH)LIWKDQG)RXUWHHQWK$PHQGPHQWV              GHFLVLRQDO ODZ RQ FRQVWLWXWLRQDO JURXQGV LV UDUHO\ DQ
RI WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ VLQFH LW GRHV QRW DIIRUG   H[WUDRUGLQDU\ FLUFXPVWDQFH PHULWLQJ UHOLHI IURP ILQDO
QRWLFHDQGWKHRSSRUWXQLW\WREHKHDUG5XOLQJRQWKH2KLR            MXGJPHQW$VQRWHGHDUOLHU*UHQGHOODOVRKDVQRWHVWDEOLVKHG
6XSUHPH &RXUWjV PRWLRQ WR GLVPLVV XQGHU )HG 5 &LY 3       WKDWWKH2KLR6XSUHPH&RXUWKDVWKUHDWHQHGVDQFWLRQVDJDLQVW
E sXGJH (GPXQG 6DUJXV 6' 2KLR KHOG WKDW        KLPLQWKHFDVHVIURPZKLFKKHYROXQWDULO\ZLWKGUHZRUDQ\
*UHQGHOOKDGVWDQGLQJWREULQJWKHFODLPDQGWKH5XOHZDV         RWKHUFDVHFXUUHQWO\EHIRUHWKDW&RXUW$FFRUGLQJO\KHLVQRW
QRWXQFRQVWLWXWLRQDORQLWVIDFH7KHFDVHZDVGLVPLVVHGDQG          VXEMHFWWRWKHFRQWLQXLQJKDUPRI5XOH;,9DQGWKHUHIRUH
*UHQGHOO DSSHDOV WR WKLV &RXUW  7KH 2KLR 6XSUHPH &RXUW       ODFNVVWDQGLQJWRVHHNGHFODUDWRU\DQGLQMXQFWLYHUHOLHI
FURVVDSSHDOV RQ WKH LVVXH RI VWDQGLQJ  )RU WKH IROORZLQJ
UHDVRQVWKLV&RXUW5(9(56(6WKHGLVWULFWFRXUWRQWKHLVVXH             $VDILQDOQRWHDOWKRXJKZHWDNHDGLPYLHZRI*UHQGHOOjV
RIVWDQGLQJDQG$)),506WKHGLVPLVVDORI*UHQGHOOjVFODLP            FODLPWKDW5XOH;,9RQLWVIDFHYLRODWHVWKH'XH3URFHVV
                                                                       &ODXVH RI WKH )LIWK DQG )RXUWHHQWK $PHQGPHQWV WR WKH
                                                                       &RQVWLWXWLRQZHUHDFKRXUFRQFOXVLRQLQWKLVFDVHVROHO\RQ
    *UHQGHOOHWDOY7KH2KLR        1RV         1RV         *UHQGHOOHWDOY7KH2KLR       
      6XSUHPH&RXUWHWDO                                                                                6XSUHPH&RXUWHWDO

EH UHDG DV LPSOLFDWLQJ WKH VWDQGLQJ RI D OLWLJDQW VHHNLQJ                              ,%DFNJURXQG
GHFODUDWRU\DQGLQMXQFWLYHUHOLHI
                                                                          7KLVFDVHLQYROYHVVDQFWLRQVLPSRVHGE\WKH2KLR6XSUHPH
   6XFK D FRQVWUXDO RI WKH KROGLQJ LQ )HOGPDQ LV DOVR          &RXUWDJDLQVWWKHSODLQWLIIDSSHOODQWVLQDGLIIHUHQWWKRXJK
FRQVLVWHQWZLWKSULRUSUHFHGHQW$VWKH6XSUHPH&RXUWKDV              UHODWHGFDVH6WDWHRI2KLRH[UHO*UHQGHOOY'DYLGVRQ
SUHYLRXVO\QRWHGmZKHQTXHVWLRQVRIMXULVGLFWLRQKDYHEHHQ             2KLR6WG1(G2KLR,QWKDWFDVH
SDVVHGRQLQSULRUGHFLVLRQVVXEVLOHQWLRWKLV&RXUWKDVQHYHU         'LDQH *UHQGHOO D PHPEHU RI WKH 2KLR +RXVH RI
FRQVLGHUHGLWVHOIERXQGZKHQDVXEVHTXHQWFDVHILQDOO\EULQJV           5HSUHVHQWDWLYHVm2KLR+RXVHlDQGWKHZLIHRIWKHSODLQWLII
WKHMXULVGLFWLRQDOLVVXHEHIRUH XVl+DJDQVY/DYLQH            DSSHOODQW VRXJKW WKH DGGLWLRQ RI D SURYLVLRQ WR DQ
86Q7KLVLVHVSHFLDOO\WUXHDVLWUHODWHV       DSSURSULDWLRQVELOOLQWKH2KLR*HQHUDO$VVHPEO\WKDWZRXOG
WRWKHLVVXHRIVWDQGLQJmSHUKDSVWKHPRVWLPSRUWDQWRI>WKH           KDYH UHVXOWHG LQ IXQGLQJ IRU WKH *HDXJD &RXQW\ $LUSRUW
MXULVGLFWLRQDO@ GRFWULQHVl  ):3%6 Y &LW\ RI 'DOODV       $XWKRULW\mDLUSRUWl7KRXJKLQLWLDOO\DJUHHGXSRQE\ERWK
86     $FFRUGLQJO\ WKH 6XSUHPH &RXUWjV         WKH2KLR+RXVHDQGWKH2KLR6HQDWHWKHDLUSRUWSURYLVLRQ
GHWHUPLQDWLRQLQ)HOGPDQFRQFHUQLQJDIHGHUDOGLVWULFWFRXUWjV          ZDVHYHQWXDOO\GURSSHGIURPWKHDSSURSULDWLRQVELOOE\WKH
VXEMHFW PDWWHU MXULVGLFWLRQ RYHU D JHQHUDO FRQVWLWXWLRQDO         FRQIHUHQFHFRPPLWWHH*UHQGHOODQGKLVZLIHWKHQEURXJKW
FKDOOHQJHPDGHZLWKRXWFRPPHQWDVWRWKHVWDQGLQJRIWKH               VXLWDJDLQVWYDULRXVPHPEHUVRIWKH2KLR*HQHUDO$VVHPEO\
OLWLJDQWV FDQQRW EH FRQVWUXHG DV LPSO\LQJ WKDW DOO JHQHUDO     DUJXLQJWKDWWKRVHPHPEHUVKDGYLRODWHGLQWHUQDOOHJLVODWLYH
FRQVWLWXWLRQDOFKDOOHQJHVPDGHLQUHFRJQLWLRQRIWKH5RRNHU            UXOHVLQGURSSLQJWKHDLUSRUWSURYLVLRQ*UHQGHOOVRXJKWDZULW
)HOGPDQGRFWULQHFRQIHUVWDQGLQJRQWKRVHOLWLJDQWV,QGHHG           RI PDQGDPXV VHHNLQJ DPRQJ RWKHU WKLQJV WR FRPSHO WKH
RWKHUFLUFXLWFRXUWVKDYHUHIXVHGWRHQGRUVHWKHQRWLRQWKDWD          FKDLUPDQRIWKH$VVHPEO\FRQIHUHQFHFRPPLWWHHWRLQFOXGH
FODLPjVFRQIRUPLW\ZLWKWKHVWULFWXUHVRIWKH5RRNHU)HOGPDQ            WKHDLUSRUWSURYLVLRQLQDQHZFRPPLWWHHUHSRUWWRGLUHFWWKH
GRFWULQHDEVROYHVDOLWLJDQWIURPHVWDEOLVKLQJSURSHUVWDQGLQJ         2KLR+RXVHDQG6HQDWHWRYRWHRQWKHUHSRUWDQGWRRUGHUWKH
6HH/DQGHUV6HHG&R,QFY&KDPSDLJQ1DWjO%DQN)G             6SHDNHU RI WKH 2KLR +RXVH DQG WKH 3UHVLGHQW RI WKH 2KLR
WK&LUQRWLQJWKDWLIWKHSODLQWLIIVRXJKW           6HQDWHWRSUHVHQWWKHELOOWRWKHJRYHUQRU6HHLGDW
UHYLHZ RI D VWDWH FRXUW YHUGLFW LQ ORZHU IHGHUDO FRXUW WKH
5RRNHU)HOGPDQ GRFWULQH EDUUHG MXULVGLFWLRQ DQG LI WKH             1RWVXUSULVLQJO\WKH2KLR6XSUHPH&RXUWGLVPLVVHGWKH
SODLQWLII VRXJKW RQO\ GHFODUDWRU\ DQG LQMXQFWLYH UHOLHI LQ       FDVH&LWLQJDSOHWKRUDRIOHJDODXWKRULW\WKDW&RXUWQRWHG
UHFRJQLWLRQRIWKH5RRNHU)HOGPDQOLPLWDWLRQmLWZRXOGQRW
KDYHVWDQGLQJWRVXHl)DFLRYsRQHV)G              >,@WLVZHOOVHWWOHGWKDWLQFRQVLGHULQJWKHYDOLGLW\RID
WK&LUKROGLQJWKDWDSODLQWLIIGLGQRWKDYHVWDQGLQJ          VWDWXWH FRXUWV ZLOO QRW LQTXLUH LQWR ZKHWKHU WKH
WRVHHNGHFODUDWRU\UHOLHIVLQFHXQGHUWKH5RRNHU)HOGPDQ                OHJLVODWXUHFRPSOLHGZLWKLWVRZQUXOHVLQHQDFWLQJWKH
GRFWULQH KH ZDV m>X@QDEOH WR DWWDFN WKH ILQDO >VWDWH FRXUW@      VWDWXWHVRORQJDVQRFRQVWLWXWLRQDOSURYLVLRQLVYLRODWHG
GHIDXOW MXGJPHQW UHQGHUHG DJDLQVW KLPl DQG KH FRXOG QRW
VKRZmWKDWKHZLOODJDLQEHVXEMHFWWRWKH>VWDWHFRXUW@GHIDXOW        ,G DW   6LQFH WKH H[FOXVLRQ RI WKH DLUSRUW SURYLVLRQ
SURYLVLRQVlZKLFKZRXOGJLYHULVHWRDQDFWXDOFRQWURYHUV\            LPSXJQHG QR FRQVWLWXWLRQDO LQWHUHVWV DQG GHDOW VROHO\ ZLWK
                                                                        REVHUYDWLRQRILQWHUQDOOHJLVODWLYHSURFHGXUHVWKHFDVHZDV
  (YHQLIWKLV&RXUWZHUHWRFRQVWUXHWKH6XSUHPH&RXUWjV               GLVPLVVHG
ODQJXDJHLQ)HOGPDQDVDQLPSOLFDWLRQWKDWWKHOLWLJDQWVKDG
DFKLHYHG VWDQGLQJ WKH IDFWV RI WKDW FDVH DUH FOHDUO\              %HIRUHWKHLVVXDQFHRIWKH2KLR6XSUHPH&RXUWjVRSLQLRQ
                                                                        LQ6WDWHRI2KLRH[UHO*UHQGHOOWKHUHVSRQGHQWVLQWKDWFDVH
      *UHQGHOOHWDOY7KH2KLR        1RV        1RV         *UHQGHOOHWDOY7KH2KLR       
       6XSUHPH&RXUWHWDO                                                                               6XSUHPH&RXUWHWDO

PRYHG IRU VDQFWLRQV SXUVXDQW WR 2KLR 5XOH RI &LYLO                 $VQRWHGHDUOLHU*UHQGHOOjVLQLWLDOFRPSODLQWVRXJKWD752
3URFHGXUHDQG2KLR5HYLVHG&RGH*UHQGHOO                 WRSUHYHQWWKHHQIRUFHPHQWRIVDQFWLRQVLPSRVHGE\WKH2KLR
GLG QRW UHVSRQG WR WKDW PRWLRQ  ,Q LWV GHFLVLRQ WKH 2KLR   6XSUHPH &RXUW LQ 6WDWH RI 2KLR H[ UHO *UHQGHOO
6XSUHPH&RXUWDGGUHVVHGWKH6SHDNHUjVPRWLRQIRUVDQFWLRQV             5HFRJQL]LQJWKDWWKH5RRNHU)HOGPDQGRFWULQHOLNHO\EDUUHG
KROGLQJ                                                                IHGHUDOGLVWULFWFRXUWUHYLHZRIWKHLPSRVLWLRQRIVDQFWLRQV
                                                                        DVWKDWZRXOGLQYROYHORZHUIHGHUDOFRXUWUHYLHZRIWKH2KLR
    6DQFWLRQVDUHZDUUDQWHGKHUH)RUWKHUHDVRQVSUHYLRXVO\            6XSUHPH&RXUWjVMXGJPHQWLQ6WDWHRI2KLRH[UHO*UHQGHOO
    GLVFXVVHG WKLV DFWLRQ LV IULYRORXV LQVRIDU DV UHODWRUVj     *UHQGHOO YROXQWDULO\ DPHQGHG WKLV LQLWLDO FRPSODLQW WR D
    FRXQVHO UHOLHG RQ WKH *HQHUDO $VVHPEO\jV MRLQW UXOHV         JHQHUDOFRQVWLWXWLRQDOFKDOOHQJHWR5XOH;,9*LYHQWKLV
    EHFDXVHWKHDFWLRQLVQRWUHDVRQDEO\ZHOOJURXQGHGLQIDFW          FRQIRUPLW\ ZLWK WKH VWULFWXUHV RI WKH 5RRNHU)HOGPDQ
    RUZDUUDQWHGE\H[LVWLQJODZRUDJRRGIDLWKDUJXPHQWIRU           GRFWULQH WKH GLVWULFW FRXUW UHDVRQHG WKDW LI WKH m6XSUHPH
    WKHH[WHQVLRQPRGLILFDWLRQRUUHYHUVDORIH[LVWLQJODZ           &RXUWH[SUHVVO\VWDWHGWKDWDSSOLFDQWVIRUDGPLVVLRQWRWKHEDU
    6&W3UDF5 ;,9 )XUWKHU DV UHVSRQGHQWV FRQWHQG          KDYHVWDQGLQJlWREULQJDJHQHUDOFRQVWLWXWLRQDOFKDOOHQJHWR
    KDUDVVPHQW LV WKH RQO\ DSSDUHQW UDWLRQDOH IRU UHODWRUVj      WKHEDUDGPLVVLRQUXOHLQ)HOGPDQWKHQ*UHQGHOOPXVWKDYH
    DWWRUQH\V WR HUURQHRXVO\ DOOHJH WKDW 7KRPDVjV DFWLRQV         VWDQGLQJWREULQJDJHQHUDOFRQVWLWXWLRQDOFKDOOHQJHWR5XOH
    FRQVWLWXWH WKH FULPLQDO RIIHQVHV RI UHWDOLDWLRQ               ;,9LQWKLVFDVH6DUJXV2SLQLRQDQG2UGHURI
    LQWLPLGDWLRQDQGFRHUFLRQ)LQDOO\WKHVHVDPHDWWRUQH\V           s$DW
    UHFHQWO\ILOHGDPHULWOHVVH[WUDRUGLQDU\ZULWFDVHLQZKLFK
    ZHHPSKDVL]HGWKHLUmXQMXVWLILHGGHOD\LQJWDFWLFVlDQG                 :H GLVDJUHH  $V DQ LQLWLDO PDWWHU WKH GLVWULFW FRXUWjV
    mDFWVRIJDPHVPDQVKLSl6WDWHH[UHO7KH5\DQW&RPPW              DVVHUWLRQWKDWLQ)HOGPDQWKH6XSUHPH&RXUWIRXQGWKDWWKH
    Y /RUDLQ &W\ %G RI (OHFWLRQV   2KLR 6WG      OLWLJDQWVKDGVWDQGLQJLVLPSUHFLVH7KLV&RXUWUHFRJQL]HV
    1(G                                      WKDW)HOGPDQH[SUHVVO\IRXQGWKDWWKHGLVWULFWFRXUWLQWKDW
                                                                        FDVH mKDV VXEMHFW PDWWHU MXULVGLFWLRQ RYHU >WKH JHQHUDO
6WDWHRI2KLRH[UHO*UHQGHOO2KLR6WGDW                 FRQVWLWXWLRQDO FKDOOHQJH@ RI >)HOGPDQjV@ FRPSODLQW>@l
                                                                        )HOGPDQ86DW*LYHQWKDWVWDQGLQJLVDQHVVHQWLDO
   *UHQGHOOWKHQEURXJKWWKHLQVWDQWDFWLRQLQIHGHUDOGLVWULFW         FRPSRQHQWRIMXULVGLFWLRQLQWKHIHGHUDOFRXUWVVHHHJ$OOHQ
FRXUWVHHNLQJDWHPSRUDU\UHVWUDLQLQJRUGHUm752lDJDLQVW            Y:ULJKW86LWLVXQGHUVWDQGDEOH
WKH 2KLR 6XSUHPH &RXUW WR SUHYHQW WKH HQIRUFHPHQW RI            WKDW WKH GLVWULFW FRXUW LQ WKLV FDVH ZRXOG FRQIODWH VXFK
VDQFWLRQVSXUVXDQWWR5XOH;,9*UHQGHOODOOHJHGWKDWWKH         ODQJXDJHZLWKDQH[SOLFLWILQGLQJRIVWDQGLQJ+RZHYHUWKH
2KLR6XSUHPH&RXUWYLRODWHGGXHSURFHVVZKHQLWLPSRVHG                 FHQWUDOKROGLQJRI)HOGPDQLVWKDWMXULVGLFWLRQDOVWDWXWHVVXFK
VDQFWLRQV SXUVXDQW WR WKH 5XOH ZLWKRXW QRWLFH DQG DQ            DV86&SURKLELWIHGHUDOGLVWULFWFRXUWUHYLHZRI
RSSRUWXQLW\ WR EH KHDUG  ,Q UHFRJQLWLRQ RI WKH 5RRNHU        D VWDWH VXSUHPH FRXUW MXGJPHQW EXW GR QRW OLPLW WKH
)HOGPDQGRFWULQHRIIHGHUDOFRXUWMXULVGLFWLRQ*UHQGHOOWKHQ           MXULVGLFWLRQRIWKHIHGHUDOGLVWULFWFRXUWDVLWUHODWHVWRJHQHUDO
DPHQGHG KLV 752 WR D JHQHUDO FRQVWLWXWLRQDO FKDOOHQJH            FRQVWLWXWLRQDOFKDOOHQJHVRIVWDWHFRXUWUXOHV,QWKLVFRQWH[W
VHHNLQJGHFODUDWRU\DQGLQMXQFWLYHUHOLHI*UHQGHOODVVHUWVWKDW       WKHQ WKH 6XSUHPH &RXUWjV VWDWHPHQW FRQFHUQLQJ VXEMHFW
WKH5XOHRQLWVIDFHYLRODWHVWKH'XH3URFHVV&ODXVHDVIRXQG         PDWWHU MXULVGLFWLRQ LQ )HOGPDQ LV PRVW QDWXUDOO\ UHDG DV D
LQWKH)LIWKDQG)RXUWHHQWK$PHQGPHQWVWRWKH&RQVWLWXWLRQ             FRQFOXVLRQ FRQFHUQLQJ WKH SURSHU MXULVGLFWLRQDO VFRSH RI
VLQFHLWIDLOVWRUHTXLUHQRWLFHDQGWKHRSSRUWXQLW\WREHKHDUG        FRQVWLWXWLRQDOFKDOOHQJHVWRVWDWHFRXUWUXOHVDQGVKRXOGQRW
EHIRUHWKHLPSRVLWLRQRIVDQFWLRQV*UHQGHOOIXUWKHUFODLPV
    *UHQGHOOHWDOY7KH2KLR       1RV         1RV         *UHQGHOOHWDOY7KH2KLR       
      6XSUHPH&RXUWHWDO                                                                               6XSUHPH&RXUWHWDO

RSSRUWXQLW\WRVLWIRUWKHEDUH[DPLQDWLRQ,GDW       WKDWWKH2KLR6XSUHPH&RXUWjVSULRULPSRVLWLRQRIVDQFWLRQV
7KH'LVWULFWRI&ROXPELD&RXUWRI$SSHDOVHYHQWXDOO\XSKHOG            SXUVXDQW WR WKH 5XOH OHG KLP WR ZLWKGUDZ IURP WZR FDVHV
WKHEDUDGPLVVLRQUHJXODWLRQDQGGLVPLVVHGWKHFDVH)HOGPDQ          EHIRUH WKDW &RXUW IRU IHDU RI H[SRVLQJ KLPVHOI WR
WKHQEURXJKWVXLWLQIHGHUDOFRXUWDUJXLQJWKDWWKH'LVWULFWRI       XQFRQVWLWXWLRQDOO\ LPSRVHG VDQFWLRQV  7KH GLVWULFW FRXUW
&ROXPELD&RXUWRI$SSHDOVKDGDFWHGXQFRQVWLWXWLRQDOO\7KH           GLVPLVVHG WKH DFWLRQ KROGLQJ DPRQJ RWKHU WKLQJV WKDW
IHGHUDOGLVWULFWFRXUWGLVPLVVHGWKHDFWLRQIRUODFNRIVXEMHFW        *UHQGHOOKDGVWDQGLQJWRVXHEXWWKDWKLVGXHSURFHVVFODLP
PDWWHUMXULVGLFWLRQ6HHLGDW                                  ZDVQRWPHULWRULRXV*UHQGHOOWLPHO\DSSHDOVDUJXLQJWKDW
                                                                       5XOH ;,9   LV XQFRQVWLWXWLRQDO RQ LWV IDFH  7KH 2KLR
   7KH 6XSUHPH &RXUW DJUHHG QRWLQJ WKDW D IHGHUDO GLVWULFW    6XSUHPH &RXUW RSSRVHV DQG FURVVDSSHDOV DUJXLQJ WKDW
FRXUWKDVQRVXEMHFWPDWWHUMXULVGLFWLRQRYHUVWDWHVXSUHPH            *UHQGHOO KDV QR VWDQGLQJ WR EULQJ WKH FODLP  *UHQGHOO
FRXUWSURFHHGLQJVWKDWDUHmMXGLFLDOlLQQDWXUHDQGWKDWUHYLHZ       RSSRVHVWKHFURVVDSSHDO
RI VXFK SURFHHGLQJV LV DYDLODEOH RQO\ LQ WKH 8QLWHG 6WDWHV
6XSUHPH&RXUW6HHLGDWFLWLQJ86&7KH                            ,,6WDQGDUGRI5HYLHZ
6XSUHPH&RXUWWKHQVWDWHGWKDWDmMXGLFLDOLQTXLU\lLVZKHQ
mWKHFRXUWZDVFDOOHGXSRQWRLQYHVWLJDWHGHFODUHDQGHQIRUFH           7KLV&RXUWUHYLHZVDGLVWULFWFRXUWjVOHJDOGHWHUPLQDWLRQRI
OLDELOLWLHVDVWKH\>VWRRG@RQSUHVHQWRUSDVWIDFWVDQGXQGHU         VWDQGLQJGHQRYR6HHsRKQVRQY(FRQ'HY&RUSRIWKH
ODZVVXSSRVHGDOUHDG\WRH[LVWl,GDWLQWHUQDOTXRWHV          &RXQW\RI2DNODQG)GWK&LU6LQFH
DQG FLWDWLRQ RPLWWHG  &RQVHTXHQWO\ )HOGPDQ FRXOG QRW         WKHGLVWULFWFRXUWGLVPLVVHGWKLVFDVHSXUVXDQWWR)HG5&LY
PDNHDFROODWHUDODWWDFNLQIHGHUDOGLVWULFWFRXUWRQWKH'LVWULFW     3EZHDFFHSWDOORI*UHQGHOOjVIDFWXDODOOHJDWLRQVDV
RI &ROXPELD &RXUW RI $SSHDOV GHFLVLRQ WR GLVPLVV WKH EDU      WUXH6HHsDFNVRQY&LW\RI&ROXPEXV)G
DSSOLFDWLRQ VLQFH WKDW GHFLVLRQ LQYROYHG ZKHWKHU )HOGPDQ        WK&LU
ZRXOGEHTXDOLILHGIRUDQH[FHSWLRQWRWKHEDUDSSOLFDWLRQUXOH
XQGHUWKRVHVSHFLILFIDFWV6HHLGDW                                                  ,,,$QDO\VLV

  +RZHYHU WKH 6XSUHPH &RXUW WKHQ GUHZ D GLVWLQFWLRQ              6WDQGLQJLVWKHmWKUHVKROGTXHVWLRQLQHYHU\IHGHUDOFDVHl
EHWZHHQ VWDWH FRXUW GHWHUPLQDWLRQV WKDW ZHUH mMXGLFLDOl LQ      &R\QHY$PHULFDQ7REDFFR&R)GWK&LU
QDWXUH DQG WKRVH WKDW ZHUH mOHJLVODWLYH PLQLVWHULDO RU        ,QRUGHUWRVDWLVI\$UWLFOH,,,jVVWDQGLQJUHTXLUHPHQW
DGPLQLVWUDWLYHl  ,G DW   8QGHU VXFK D GLVWLQFWLRQ D   *UHQGHOOPXVWKDYHVXIIHUHGVRPHDFWXDORUWKUHDWHQHG
UHYLHZRIWKHVWDWHFRXUWGHFLVLRQGHQ\LQJWKHSDUWLFXODUEDU          LQMXU\GXHWKHWRDOOHJHGLOOHJDOFRQGXFWWKHmLQMXU\LQIDFW
DSSOLFDWLRQ PLJKW UXQ DIRXO RI IHGHUDOLVP EXW D mJHQHUDO      HOHPHQWl  WKH LQMXU\ PXVW EH IDLUO\ WUDFHDEOH WR WKH
FKDOOHQJHWRWKHFRQVWLWXWLRQDOLW\lRIWKHEDUDGPLVVLRQUXOH          FKDOOHQJHG DFWLRQ WKH mFDXVDWLRQ HOHPHQWl DQG  WKHUH
ZRXOG QRW  ,G DW   7KLV LV EHFDXVH D JHQHUDO       PXVWEHDVXEVWDQWLDOOLNHOLKRRGWKDWWKHUHOLHIUHTXHVWHGZLOO
FRQVWLWXWLRQDOFKDOOHQJHZRXOGQRWUHTXLUHDGLVWULFWFRXUWmWR        UHGUHVV RU SUHYHQW *UHQGHOOjV LQMXU\ WKH mUHGUHVVDELOLW\
UHYLHZDILQDOVWDWHFRXUWMXGJPHQWLQDMXGLFLDOSURFHHGLQJl         HOHPHQWl6HHLG6LQFHWKLVFDVHGHDOVZLWKGHFODUDWRU\DQG
UDWKHUWKHmGLVWULFWFRXUWPD\VLPSO\EHDVNHGWRDVVHVVWKH          LQMXQFWLYHUHOLHIDSUHHQIRUFHPHQWFKDOOHQJHPD\EHPDGH
YDOLGLW\RIDUXOHSURPXOJDWHGLQDQRQMXGLFLDOSURFHHGLQJl           EHIRUHWKHDFWXDOFRPSOHWLRQRIDQLQMXU\LQIDFW6HH1DWjO
,GDW&RQVHTXHQWO\DGLVWULFWFRXUWZRXOGKDYHVXEMHFW         5LIOH$VVRFRI$PY0DJDZ)GWK&LU
PDWWHUMXULVGLFWLRQWRDVVHVVDJHQHUDOFRQVWLWXWLRQDOFKDOOHQJH       +RZHYHUmZKHQVHHNLQJGHFODUDWRU\DQGLQMXQFWLYH
WRDVWDWHFRXUWUXOH6HHLGDW                                UHOLHI D SODLQWLII PXVW VKRZ DFWXDO SUHVHQW KDUP RU D
     *UHQGHOOHWDOY7KH2KLR        1RV         1RV          *UHQGHOOHWDOY7KH2KLR         
      6XSUHPH&RXUWHWDO                                                                                 6XSUHPH&RXUWHWDO

VLJQLILFDQWSRVVLELOLW\RIIXWXUHKDUPLQRUGHUWRGHPRQVWUDWH          GRHVQRWREMHFWLYHO\HVWDEOLVKDQLPPLQHQWWKUHDWWKDWFKLOOV
WKHQHHGIRUSUHHQIRUFHPHQWUHYLHZl,G                            SURWHFWHGDFWLYLW\6HH6WHIIHO86DW6WHZDUWs
                                                                        FRQFXUULQJ:KLOHWKHSUHYLRXVLPSRVLWLRQRIVDQFWLRQVLVD
   *UHQGHOOSUHVHQWVWKUHHDUJXPHQWVWRVXSSRUWWKHFODLPWKDW          IDFWRUWKLV&RXUWFDQFRQVLGHULQLWVVWDQGLQJGHWHUPLQDWLRQ
KHKDVVWDQGLQJWRPDNHDIDFLDOFRQVWLWXWLRQDOFKDOOHQJHWR            VHH/62/WGY6WURK)GWK&LU
5XOH;,9)LUVW*UHQGHOOQRWHVWKDWKHZDVSUHYLRXVO\            *UHQGHOOSUHVHQWVQRHYLGHQFHWKDWWKH2KLR6XSUHPH&RXUW
VDQFWLRQHGDOOHJHGO\ZLWKRXWGXHSURFHVVSURWHFWLRQVLQ6WDWH         WKUHDWHQHG WR VDQFWLRQ KLP LQ WKH FDVHV IURP ZKLFK KH
RI2KLRH[UHO*UHQGHOO6HFRQG*UHQGHOOFODLPVWKDWKHLV           YROXQWDULO\ZLWKGUHZQRUGRHVKHSUHVHQWHYLGHQFHWKDWWKH
VXEMHFWWRWKHmFRQWLQXLQJVLFSUHVHQWDGYHUVHHIIHFWVRIWKH         2KLR6XSUHPH&RXUWFXUUHQWO\WKUHDWHQVKLPZLWKVDQFWLRQV
XQFRQVWLWXWLRQDOLW\ RI    5XOH ;,9l WKDW mFKLOOVl WKH    LQDQ\RWKHUFDVH$FFRUGLQJO\DQ\DOOHJHGFKLOOLQJHIIHFW
H[HUFLVHRISURWHFWHGFRQGXFW*UHQGHOOjVG%UDW7KLUG        WKDW5XOH;,9KDVRQSURWHFWHGDFWLYLW\LVDQLQVXIILFLHQW
*UHQGHOODUJXHVWKDWVLQFHKLVFODLPDULVHVXQGHUWKH5RRNHU           LQMXU\WRVXSSRUWVWDQGLQJ
)HOGPDQGRFWULQHRIMXULVGLFWLRQKHKDVVWDQGLQJWREULQJKLV
IDFLDO FKDOOHQJH WR WKH FRQVWLWXWLRQDOLW\ RI 5XOH ;,9      &7KH5RRNHU)HOGPDQ'RFWULQHDQG6WDQGLQJ
1RQHRIWKHVHMXVWLILFDWLRQVKRZHYHUDUHVXIILFLHQWWRFRQIHU
VWDQGLQJLQWKLVFDVH                                                     *UHQGHOO DOVR FODLPV WKDW DQ DSSOLFDWLRQ RI WKH 5RRNHU
                                                                        )HOGPDQ GRFWULQH HQVXUHV KLV VWDQGLQJ LQ WKLV FDVH  ,Q
$3DVW([SRVXUHWR6DQFWLRQV                                           'LVWULFWRI&ROXPELD&RXUWRI$SSHDOVY)HOGPDQ86
                                                                        )HOGPDQFKDOOHQJHGLQmVWDWHlFRXUWD'LVWULFW
  $V DQ LQLWLDO PDWWHU WKH PHUH IDFW WKDW *UHQGHOO ZDV        RI&ROXPELDEDUDGPLVVLRQUXOHZKLFKUHTXLUHGEDUDSSOLFDQWV
SUHYLRXVO\VDQFWLRQHGE\WKH2KLR6XSUHPH&RXUWLQ6WDWHRI             WR VXEPLW SURRI RI JUDGXDWLRQ IURP DQ $PHULFDQ %DU
2KLR H[ UHO *UHQGHOO LV QRW DQ DGHTXDWH LQMXU\ LQ IDFW WR   $VVRFLDWLRQDFFUHGLWHGODZVFKRRO)HOGPDQDEDUFHUWLILHG
FRQIHUVWDQGLQJIRUGHFODUDWRU\DQGLQMXQFWLYHUHOLHI$VWKH          ODZ\HU LQ ERWK 9LUJLQLD DQG 0DU\ODQG UHFHLYHG KLV OHJDO
6XSUHPH&RXUWKDVQRWHGmSDVWH[SRVXUHWRLOOHJDOFRQGXFW              HGXFDWLRQ WKURXJK D SURJUDP RI VWUXFWXUHG DSSUHQWLFHVKLS
GRHVQRWLQLWVHOIVKRZDSUHVHQWFDVHRUFRQWURYHUV\UHJDUGLQJ         HQGRUVHGE\WKHVWDWHRI9LUJLQLD6HHLGDW*LYHQKLV
LQMXQFWLYH UHOLHI    LI XQDFFRPSDQLHG E\ DQ\ FRQWLQXLQJ    mXQXVXDOO\KLJKTXDOLILFDWLRQVl)HOGPDQVRXJKWLPPHGLDWH
SUHVHQWDGYHUVHHIIHFWVl&LW\RI/RV$QJHOHVY/\RQV            DGPLVVLRQ WR WKH 'LVWULFW RI &ROXPELD EDU RU LQ WKH
86,QGHHGSULRUSUHFHGHQWHVWDEOLVKHVWKDW          DOWHUQDWLYH D ZDLYHU RI WKH EDU DGPLVVLRQ UXOH DQG DQ
ZKHUHDVWDWHFRXUWKDVLVVXHGVDQFWLRQVSXUVXDQWWRDFLYLO
FRQWHPSW SURFHHGLQJ RQO\ WKRVH OLWLJDQWV VWLOO XQGHU WKH
LQIOXHQFHRIWKRVHSHQDOWLHVKDYHVWDQGLQJ6HHsXGLFHY9DLO            
 86    mRQFH WKH SHULRG RI                     7KH 5RRNHU)HOGPDQ GRFWULQH GHULYHV LWV QDPH IURP WZR FDVHV o
                                                                                                                            86  
LQFDUFHUDWLRQLVVHUYHGRUWKHILQHSDLGWKHHIIHFWRIWKHRUGHUV
                                                                        'LVWULFW RI &ROXPELD &RXUW RI $SSHDOV Y )HOGPDQ
                                                                        ZKLFK UHYLYHG D GRFWULQH RI IHGHUDO FRXUW MXULVGLFWLRQ HVWDEOLVKHG E\
LPSRVLQJDILQHRUFRPPLWPHQWKDVH[SHQGHGLWVHOIlDQGWKH             5RRNHU Y )LGHOLW\ 7UXVW &R  86  
SDUW\ ODFNV VWDQGLQJ WR VHHN LQMXQFWLYH UHOLHI  $V WKH
VDQFWLRQVLPSRVHGE\WKH2KLR6XSUHPH&RXUWKDYHDOUHDG\                    
                                                                             )HOGPDQ DFWXDOO\ DGGUHVVHV WZR FRPSDQLRQ FDVHV EXW RQO\
EHHQ SHUIHFWHG E\ 6WDWH RI 2KLR H[ UHO *UHQGHOO WKLV SDVW   )HOGPDQjV QHHG EH GHVFULEHG KHUH
LQMXU\KDVQRFRQWLQXLQJSUHVHQWDGYHUVHHIIHFWVDQGFDQQRW
                                                                            
HVWDEOLVKVWDQGLQJIRUGHFODUDWRU\DQGLQMXQFWLYHUHOLHI                    7KH 'LVWULFW RI &ROXPELD &RXUW RI $SSHDOV LV WKH HTXLYDOHQW RI D
                                                                        VWDWH VXSUHPH FRXUW
    *UHQGHOOHWDOY7KH2KLR       1RV      1RV           *UHQGHOOHWDOY7KH2KLR          
      6XSUHPH&RXUWHWDO                                                                              6XSUHPH&RXUWHWDO

   )RUH[DPSOHLQ6WHIIHOD9LHWQDP:DUSURWHVWRUPDGHD            3UHYLRXVVDQFWLRQVPLJKWEHmHYLGHQFHEHDULQJRQZKHWKHU
SUHHQIRUFHPHQWFKDOOHQJHDJDLQVWDQDQWLKDQGELOOLQJVWDWXWH      WKHUH LV D UHDO DQG LPPHGLDWH WKUHDW RI UHSHDWHG LQMXU\l
6HH6WHIIHO86DW7KHSODLQWLIIHVWDEOLVKHGWKDWKH    /\RQV  86 DW   +RZHYHU ZKHUH WKH WKUHDW RI
ZDVWZLFHZDUQHGWRVWRSKDQGELOOLQJLQIRUPHGWKDWKHZRXOG        UHSHDWHGLQMXU\LVVSHFXODWLYHRUWHQXRXVWKHUHLVQRVWDQGLQJ
OLNHO\EHSURVHFXWHGLIKHDJDLQKDQGELOOHGDQGGLVREH\HGD         WR VHHN LQMXQFWLYH UHOLHI  6HH LG DW   )RU H[DPSOH LQ
ZDUQLQJ WR VWRS DQG KLV KDQGELOOLQJ FRPSDQLRQ ZDV           /\RQVWKHSODLQWLIIEURXJKWDQDFWLRQVHHNLQJWRHQMRLQWKH
SURVHFXWHG6HHLGDW$FFRUGLQJO\WKH6XSUHPH&RXUW        /RV$QJHOHV3ROLFH'HSDUWPHQWm/$3'lIURPXVLQJD
GHWHUPLQHGWKDWWKHSODLQWLIIKDGPDGHmDPSOHGHPRQVWUDWLRQ         FKRNHKROGGXULQJDUUHVWVWKDWKDGFDXVHGVHYHUDOGHDWKV6HH
WKDW>KLV@FRQFHUQZLWKDUUHVW>ZDVQRW@FKLPHULFDOl,G%\      LGDW7KRXJKWKH/$3'KDGSUHYLRXVO\XVHG
FRQWUDVWLQ<RXQJHUWZRPHPEHUVRIWKH3URJUHVVLYH/DERU          WKHFKRNHKROGDJDLQVWWKHSODLQWLIILQWKDWFDVHWKH6XSUHPH
3DUW\ DQG D KLVWRU\ SURIHVVRU PDGH D SUHHQIRUFHPHQW         &RXUW KHOG WKDW WKH IXWXUH WKUHDW RI LQMXU\ ZDV VWLOO WRR
FKDOOHQJH DJDLQVW D VWDWH ODZ WKDW ZRXOG DOOHJHGO\ KDYH     VSHFXODWLYH WR FRQIHU VWDQGLQJ IRU LQMXQFWLYH UHOLHI  7KH
SUHYHQWHGWKHSODLQWLIIVIURPDGYRFDWLQJRUWHDFKLQJVRFLDOLVW      6XSUHPH&RXUWUHDVRQHG
RUFRPPXQLVWGRFWULQH6HH<RXQJHU86DW,Q
KROGLQJWKDWWKHWKUHHSODLQWLIIVKDGIDLOHGWRDOOHJHDQDFWXDO      7KDW/\RQVPD\KDYHEHHQLOOHJDOO\FKRNHGE\WKHSROLFH
FDVHRUFRQWURYHUV\WKH6XSUHPH&RXUWH[SODLQHG                     ZKLOHSUHVXPDEO\DIIRUGLQJ/\RQVVWDQGLQJWRFODLP
                                                                      GDPDJHV DJDLQVW WKH LQGLYLGXDO RIILFHUV DQG SHUKDSV
  ,IWKHVHWKUHHKDGDOOHJHGWKDWWKH\ZRXOGEHSURVHFXWHG            DJDLQVW WKH &LW\ GRHV QRWKLQJ WR HVWDEOLVK D UHDO DQG
  IRU WKH FRQGXFW WKH\ SODQQHG WR HQJDJH LQ DQG LI WKH     LPPHGLDWHWKUHDWWKDWKHZRXOGDJDLQEHVWRSSHGIRUD
  'LVWULFW&RXUWKDGIRXQGWKLVDOOHJDWLRQWREHWUXHHLWKHU         WUDIILFYLRODWLRQRUIRUDQ\RWKHURIIHQVHE\DQRIILFHURU
  RQWKHDGPLVVLRQRIWKH6WDWHjVGLVWULFWDWWRUQH\RURQDQ\         RIILFHUV ZKR ZRXOG LOOHJDOO\ FKRNH KLP LQWR
  RWKHUHYLGHQFHWKHQDJHQXLQHFRQWURYHUV\PLJKWEHVDLG            XQFRQVFLRXVQHVVZLWKRXWDQ\SURYRFDWLRQ
  WRH[LVW%XWKHUHDSSHOOHHVGRQRWFODLPWKDWWKH\
  KDYH HYHU EHHQ WKUHDWHQHG ZLWK SURVHFXWLRQ WKDW D         ,GDW
  SURVHFXWLRQ LV OLNHO\ RU HYHQ WKDW D SURVHFXWLRQ LV
  UHPRWHO\SRVVLEOH7KH\FODLPWKHULJKWWREULQJWKLVVXLW         6LPLODUO\LQ$VKFURIWY0DWWLV86WKH
  VROHO\EHFDXVHLQWKHODQJXDJHRIWKHLUFRPSODLQWWKH\          IDWKHURIDER\ZKRZDVNLOOHGZKLOHIOHHLQJWKHSROLFHVRXJKW
  mIHHOLQKLELWHGl                                                 DGHFODUDWLRQWKDWDVWDWHVWDWXWHZKLFKDXWKRUL]HGSROLFHWR
                                                                    XVHGHDGO\IRUFHLQDSSUHKHQGLQJDSHUVRQZKRFRPPLWWHGD
<RXQJHU86DW                                          IHORQ\ZDVXQFRQVWLWXWLRQDO6HHLGDWQ,QDUJXLQJ
                                                                    WKDWKHKDGVWDQGLQJWKHIDWKHUDOOHJHGWKDWKHKDGDQRWKHUVRQ
  ,QWKLVFDVH*UHQGHOOjVIHDURIXQFRQVWLWXWLRQDOO\LPSRVHG       ZKR
VDQFWLRQVDUHVLPLODUWRWKHIHDUVRIWKHSODLQWLIIVLQ<RXQJHU
2IFRXUVHWKLV&RXUWDVVXPHVIRUWKHSXUSRVHVRIDPRWLRQWR         LIHYHUDUUHVWHGRUEURXJKWXQGHUDQDWWHPSWWRDUUHVWRQ
GLVPLVVWKDW*UHQGHOOZLWKGUHZIURPFDVHVEHIRUHWKH2KLR            VXVSLFLRQRIDIHORQ\PLJKWIOHHRUJLYHWKHDSSHDUDQFH
6XSUHPH &RXUW IRU IHDU RI XQFRQVWLWXWLRQDOO\ LPSRVHG            RI IOHHLQJ DQG ZRXOG WKHUHIRUH EH LQ GDQJHU RI EHLQJ
VDQFWLRQVSXUVXDQWWR5XOH;,9+RZHYHUWKHPHUHIDFW          NLOOHGE\WKHVHGHIHQGDQWVRURWKHUSROLFHRIILFHUV
WKDW *UHQGHOO VXEMHFWLYHO\ IHDUV VXFK VDQFWLRQV RU mIHHOV
LQKLELWHGlE\WKH2KLR6XSUHPH&RXUWjVVDQFWLRQLQJSRZHU
     *UHQGHOOHWDOY7KH2KLR        1RV          1RV          *UHQGHOOHWDOY7KH2KLR          
      6XSUHPH&RXUWHWDO                                                                                  6XSUHPH&RXUWHWDO

,GDWQ$FFRUGLQJO\WKH6XSUHPH&RXUWIRXQGWKH               VXIILFLHQW WR FRQIHU VWDQGLQJ  ,W LV ZHOOVHWWOHG WKDW IDFLDO
WKUHDWRIIXWXUHLQMXU\WRRVSHFXODWLYHWRFRQIHUVWDQGLQJ6HH         FRQVWLWXWLRQDOFKDOOHQJHVUHO\LQJRQWKHRYHUEUHDGWKGRFWULQH
LGDWQ                                                       DQG WKH UHVXOWDQW FKLOOLQJ HIIHFW VXFK RYHUEUHDGWK KDV RQ
                                                                         VSHHFKDUHOLPLWHGWRWKH)LUVW$PHQGPHQWVSKHUH6HH&LW\
   *LYHQ WKLV SUHFHGHQW *UHQGHOO KDV QRW HVWDEOLVKHG              RI&KLFDJRY0RUDOHV868QLWHG
VXIILFLHQW LQMXU\ LQ IDFW WR VHHN GHFODUDWRU\ DQG LQMXQFWLYH     6WDWHV Y 6DOHUQR  86    VHH DOVR
UHOLHIWRHQMRLQWKHDOOHJHGLOOHJDODSSOLFDWLRQRI5XOH;,9            :LVFRQVLQY0LWFKHOO86QRWLQJWKDW
,QRWKHUZRUGV*UHQGHOOKDVIDLOHGWRVKRZWKDWKHLV             FKLOOLQJHIIHFWDQGRYHUEUHDGWKDUHOLQNHGFRQFHSWV:KLOH
VXEMHFWWRmDFWXDOSUHVHQWKDUPRUDVLJQLILFDQWSRVVLELOLW\RI          WKH6XSUHPH&RXUWKDVSUHYLRXVO\VWDWHGWKDWmVRPHODZ\HULQJ
IXWXUHKDUPlLQRUGHUWRVHHNWKHUHTXHVWHGGHFODUDWRU\DQG              DFWLYLW\LVXQGRXEWHGO\SURWHFWHGE\WKH)LUVW$PHQGPHQWl
LQMXQFWLYHUHOLHI1DWjO5LIOH$VVRFRI$P)GDW          WKDWDFWLYLW\KDVGHDOWZLWKmPHDQLQJIXODFFHVVWRWKHFRXUWVl
$V ZLWK WKH SODLQWLIIV LQ /\RQV DQG $VKFURIW WKH WKUHDW RI    6HH 5REHUWV Y 8QLWHG 6WDWHV sD\FHHV  86  
*UHQGHOOjV IXWXUH LQMXU\ LV KLJKO\ FRQMHFWXUDO UHVWLQJ RQ D     2j&RQQRUsFRQFXUULQJLQSDUWDQGFRQFXUULQJLQ
VWULQJ RI DFWLRQV WKH RFFXUUHQFH RI ZKLFK LV PHUHO\              MXGJPHQW  6XFK DFWLYLW\ KDV JHQHUDOO\ EHHQ FRQILQHG WR
VSHFXODWLYH  ,Q VKRUW WR VKRZ D SDOSDEOH WKUHDW RI IXWXUH    LQWHUIHUHQFH ZLWK DQ DWWRUQH\jV ULJKW WR VROLFLW RU RUJDQL]H
LQMXU\ QHFHVVDU\ WR DFKLHYH VWDQGLQJ IRU GHFODUDWRU\ DQG          FOLHQWVHVSHFLDOO\IRUSROLWLFDORUVRFLDOSXUSRVHVVHHHJ,Q
LQMXQFWLYHUHOLHI*UHQGHOOPXVWSUHVHQWHYLGHQFHHVWDEOLVKLQJ          UH3ULPXV86RULQWHUIHUHQFHZLWK
 WKDW KH LV EULQJLQJ RU KLJKO\ OLNHO\ WR EULQJ D ODZVXLW   D SULVRQHUjV ULJKW RI DFFHVV WR OHJDO PDWHULDOV RU OHJDO
EHIRUH WKH 2KLR 6XSUHPH &RXUW  WKDW VXFK ODZVXLW LV         DVVLVWDQFHLQRUGHUWRSHWLWLRQWKHJRYHUQPHQWIRUDUHGUHVVRI
DOOHJHGO\ IULYRORXV H[SRVLQJ KLP WR VDQFWLRQV XQGHU 5XOH         JULHYDQFHV6HHHJ/HZLVY&DVH\86
;,9    WKDW WKH 2KLR 6XSUHPH &RXUW ZRXOG LQ LWV         $V 5XOH ;,9   GHDOV ZLWK VDQFWLRQV LPSRVHG
GLVFUHWLRQLPSRVHVXFKVDQFWLRQVDQGWKDWWKHLPSRVLWLRQ           DJDLQVWDWWRUQH\VIRUIULYRORXVRUKDUDVVLQJODZVXLWVVHH6WDWH
RIWKRVHVDQFWLRQVZRXOGYLRODWHGXHSURFHVV6XFKDFKDLQRI           RI 2KLR H[ UHO *UHQGHOO  2KLR 6W G DW  QR )LUVW
HYHQWVLVVLPSO\WRRDWWHQXDWHGWRHVWDEOLVKLQMXU\LQIDFWDQG         $PHQGPHQWDFWLYLW\LVLPSXJQHGLQWKLVFDVH
WRFRQIHUWKHUHTXLUHGVWDQGLQJLQWKLVFDVH
                                                                            (YHQ DVVXPLQJ DUJXHQGR WKDW DWWRUQH\ VDQFWLRQV IRU
%m&KLOOLQJ(IIHFWl                                                     IULYRORXVRUKDUDVVLQJODZVXLWVLPSOLFDWH)LUVW$PHQGPHQW
                                                                         FRQFHUQV *UHQGHOO FDQQRW HVWDEOLVK WKDW KLV IHDU RI
   *UHQGHOODOVRDUJXHVWKDWWKH2KLR6XSUHPH&RXUWjVSRZHU              XQFRQVWLWXWLRQDOO\ LPSRVHG VDQFWLRQV LV D FKLOOLQJ HIIHFW
WRVDQFWLRQDWWRUQH\VSXUVXDQWWR5XOH;,9mFRQWLQXRXVO\           VXIILFLHQW WR FRQIHU VWDQGLQJ  ,Q GHDOLQJ ZLWK WKH FKLOOLQJ
H[SRVH>VWKHSODLQWLIIDSSHOODQWV@WRWKHµFKLOOLQJHIIHFWjRI     HIIHFWFULPLQDOVWDWXWHVKDYHRQ)LUVW$PHQGPHQWH[SUHVVLRQ
WKH KDQJLQJ RI WKH µ6ZRUG RI 'DPRFOHVj RYHU WKHPl               WKH 6XSUHPH &RXUW KDV SUHYLRXVO\ QRWHG WKDW mLW LV QRW
*UHQGHOOjV G %U DW   $V HYLGHQFH RI WKLV FKLOOLQJ      QHFHVVDU\WKDW>DSODLQWLII@ILUVWH[SRVHKLPVHOIWRDFWXDODUUHVW
HIIHFW*UHQGHOODYHUVWKDWIHDURIXQFRQVWLWXWLRQDOO\LPSRVHG           RU SURVHFXWLRQ WR EH HQWLWOHG WR FKDOOHQJH D VWDWXWH WKDW KH
VDQFWLRQV IRUFHG KLP WR ZLWKGUDZ IURP WZR UHFHQW FDVHV           FODLPVGHWHUVWKHH[HUFLVHRIKLVFRQVWLWXWLRQDOULJKWVl6WHIIHO
EHIRUHWKH2KLR6XSUHPH&RXUW                                          Y7KRPVSVRQ86+RZHYHUWKRVH
                                                                         IHDUV RI SURVHFXWLRQ FDQQRW EH PHUHO\ mLPDJLQDU\ RU
   *UHQGHOOFDQQRWDUJXHKRZHYHUWKDWDFKLOOLQJHIIHFWGXH            VSHFXODWLYHl<RXQJHUY+DUULV86
WRWKHSRVVLELOLW\RIDWWRUQH\VDQFWLRQVLQWKLVFDVHLVDQLQMXU\
