                                                                         5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
   )UHQFKYsRQHV                          1R                     3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

                                                                      (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ LQ FDVH  LV                       )LOH 1DPH DS

$)),50('
                                                              81,7('67$7(6&28572)$33($/6
                                                                                 )257+(6,;7+&,5&8,7
                                                                                   BBBBBBBBBBBBBBBBB


                                                               2/,9(5 )5(1&+ s5               ;
                                                                        3HWLWLRQHU$SSHOOHH     
                                                                                                 
                                                                                                   1R
                                                                         Y                      
                                                                                                  !
                                                                                                 
                                                               .857 s21(6                       
                                                                     5HVSRQGHQW$SSHOODQW 
                                                                                                1
                                                                    $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                   IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
                                                                  1Rn$UWKXUs7DUQRZ'LVWULFWsXGJH
                                                                                  $UJXHGsDQXDU\
                                                                             'HFLGHGDQG)LOHG0DUFK
                                                              %HIRUHs21(6DQG&2/(&LUFXLWsXGJHV*:,1'LVWULFW
                                                                                    sXGJH
                                                                                     BBBBBBBBBBBBBBBBB
                                                                                           &2816(/
                                                              $5*8('  2OJD $JQHOOR 2)),&( 2) 7+(
                                                              3526(&87,1* $77251(< &2817< 2) :$<1(
                                                              'HWURLW0LFKLJDQIRU$SSHOODQW'DYLG$0RUDQ67$7(

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



                                                                                                 
       )UHQFKYsRQHV                                   1R     1R                                 )UHQFKYsRQHV        

$33(//$7('()(1'(52)),&('HWURLW0LFKLJDQIRU                         IDYRURIWKHFRQFOXVLRQWKDWWKHGHIHQGDQWjVULJKWWRDIDLUWULDO
$SSHOOHH  21 %5,()  2OJD $JQHOOR 2)),&( 2) 7+(                DQGLPSDUWLDOMXU\KDVEHHQYLRODWHGl8QLWHG6WDWHVY6FRWW
3526(&87,1* $77251(< &2817< 2) :$<1(                                )GWK&LU7KHWULDOMXGJHjVRPLVVLRQ
'HWURLW0LFKLJDQIRU$SSHOODQW'DYLG$0RUDQ67$7(                  RIWKHmKRQHVWFRQYLFWLRQVlFRPSRQHQWLVHYHQPRUHWURXEOLQJ
$33(//$7('()(1'(52)),&('HWURLW0LFKLJDQIRU                         EHFDXVH DQ DSSURSULDWH FKDUJH ZDV LQFOXGHG LQ WKH ILUVW
$SSHOOHH                                                                 VXSSOHPHQWDOLQVWUXFWLRQJLYHQWRWKHMXU\s$DW6XFK
                                                                          DQRPLVVLRQULVNVWKHMXURUVEHOLHYLQJWKHLUUHVSRQVLELOLWLHV
                       BBBBBBBBBBBBBBBBB                                  KDYHFKDQJHG
                           23,1,21                                           )XUWKHUPRUH WKH WULDO MXGJHjV RPLVVLRQ RI WKH mKRQHVW
                       BBBBBBBBBBBBBBBBB                                  FRQYLFWLRQVl FRPSRQHQW ZDV DPSOLILHG E\ WKH WULDO MXGJH
                                                                          WHOOLQJ WKH MXURUV WKUHH VHSDUDWH WLPHV WKH\ WRRN DQ RDWK WR
  *:,1'LVWULFWsXGJH7KLVFDVHUHWXUQVWRXVIRUDVHFRQG             UHDFKDYHUGLFWs$DWo:KLOHXQLQWHQWLRQDOWKHWULDO
WLPH:LWKWKLVDSSHDOZHH[DPLQHZKHWKHUWKHGLVWULFWFRXUW             MXGJHjV LQVWUXFWLRQ HPSKDVL]HG WKH MXURUV GXW\ WR UHDFK D
ZURQJO\ JUDQWHG D ZULW RI KDEHDV FRUSXV DIWHU D 0LFKLJDQ         XQDQLPRXV YHUGLFW ZLWKRXW DVVXULQJ WKHP WKDW GLVVHQW ZDV
FRXUWJDYHDVXSSOHPHQWDOLQVWUXFWLRQWRDGHDGORFNHGMXU\               DFFHSWDEOH6HH%XUJRV)GDW
7KH0LFKLJDQWULDOMXGJHJDYHWKHVXSSOHPHQWDOLQVWUXFWLRQ
ZKLFK GLG QRW FRQIRUP ZLWK WKH DSSURYHG 0LFKLJDQ                     7KHWLPHOLQHRIWKHMXU\jVGHOLEHUDWLRQVXJJHVWVWKDWWKH
LQVWUXFWLRQZKHQWKHGHIHQGDQWjVDWWRUQH\ZDVQRWSUHVHQW               WKLUG VXSSOHPHQWDO LQVWUXFWLRQ KDG DQ HIIHFW  2QFH WKH\
                                                                          UHFHLYHGWKHFDVHWKHMXU\GHOLEHUDWHGIRUWKUHHGD\V'XULQJ
 $WWKHHDUOLHUDSSHDOWRWKLV&RXUWZHYDFDWHGWKHGLVWULFW            WKDW WLPH WKH\ VHQW RXW WKUHH LQFUHDVLQJO\ HPSKDWLF QRWHV
FRXUWjVRUGHUJUDQWLQJKDEHDVUHOLHIDQGUHPDQGHGWKHFDVHIRU            VD\LQJWKH\ZHUHGHDGORFNHGDQGFRXOGQRWUHDFKDYHUGLFW
DQHYLGHQWLDU\KHDULQJ$WWKDWKHDULQJWKHGLVWULFWFRXUWZDV          (YHQ WKRXJK WKH WULDO MXGJH WZLFH JDYH WKHP D VWDQGDUG
GLUHFWHGWRUHYLHZWKHUROHRI7\sRQHVDQDOOHJHGDWWRUQH\             GHDGORFNHG MXU\ LQVWUXFWLRQ WKH MXU\ FRXOG VWLOO QRW UHDFK D
IURP &DOLIRUQLD  7\ sRQHV ZDV SUHVHQW DW WKH WLPH WKH          YHUGLFW  <HW OHVV WKDQ WZR KRXUV DIWHU UHFHLYLQJ WKH WKLUG
VXSSOHPHQWDOLQVWUXFWLRQZDVJLYHQEXWLWZDVXQFOHDUZKHWKHU             VXSSOHPHQWDO LQVWUXFWLRQ WKH MXURUV UHWXUQHG D JXLOW\ EXW
KHZDVOLFHQVHGWRSUDFWLFHODZ)UHQFKYsRQHV1R                PHQWDOO\LOOYHUGLFWRQDOOFRXQWV
:/DWoWK&LUsXO\
                                                                            ,QOLJKWRIWKHVHIDFWVZHFRQFOXGHWKHWULDOMXGJHjVWKLUG
 $WWKHHQVXLQJHYLGHQWLDU\KHDULQJWKHGLVWULFWFRXUWOHDUQHG          VXSSOHPHQWDO LQVWUXFWLRQ KDG D VXEVWDQWLDO DQG LQMXULRXV
sRQHVZDVQRWDQDWWRUQH\DQGZDVSUHVHQWRQO\WRREVHUYH                 LQIOXHQFHRQWKHMXU\jVYHUGLFWWKDWUHVXOWHGLQSUHMXGLFHWR
&RUQHOLXV3LWWVRQHRI)UHQFKjVDWWRUQH\V$IWHUILQGLQJWKDW           )UHQFK
7\ sRQHV ZDV QRW DQ DWWRUQH\ WKH GLVWULFW FRXUW KHOG WKDW
)UHQFKZDVGHQLHGUHSUHVHQWDWLRQGXULQJDFULWLFDOVWDJHRIKLV                                    ,,,&RQFOXVLRQ
WULDO DQG JUDQWHG KLV SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV
)UHQFKYsRQHV)6XSSG('0LFK                $W WKH HYLGHQWLDU\ KHDULQJ ZH RUGHUHG LQ WKLV FDVH WKH
                                                                          GLVWULFWFRXUWGHWHUPLQHG)UHQFKGLGQRWKDYHFRXQVHOGXULQJ
                                                                          WKH WULDO MXGJHjV VXSSOHPHQWDO MXU\ LQVWUXFWLRQ  %HFDXVH
                                                                          )UHQFKZDVZLWKRXWFRXQVHOGXULQJDFULWLFDOVWDJHRIKLVWULDO
                                                                          WKHGLVWULFWFRXUWFRUUHFWO\JUDQWHG)UHQFKjVSHWLWLRQIRUDZULW
    
     7\ sRQHV LV QRW UHODWHG WR .XUW sRQHV WKH DSSHOODQW LQ WKLV FDVH
                                                                          RIKDEHDVFRUSXV7KHMXGJPHQWRIWKH86'LVWULFW&RXUWIRU
   )UHQFKYsRQHV                                1R    1R                                     )UHQFKYsRQHV           

   LLWKDWMXURUVKDYHDGXW\WRFRQVXOWZLWKRQHDQRWKHU         :LWK WKLV DSSHDO ZH GHFLGH ZKHWKHU D GHIHQGDQW ZKRVH
    DQGWRGHOLEHUDWHZLWKDYLHZWRUHDFKLQJDQDJUHHPHQW        ODZ\HU ZDV QRW SUHVHQW ZKHQ WKH WULDO MXGJH JDYH D
    LI LW FDQ EH GRQH ZLWKRXW YLROHQFH WR LQGLYLGXDO       VXSSOHPHQWDOLQVWUXFWLRQWRDGHDGORFNHGMXU\LVHQWLWOHGWR
    MXGJPHQW                                                     KDEHDVUHOLHI)LQGLQJ3HWLWLRQHU)UHQFKZDVGHQLHGFRXQVHO
                                                                   GXULQJDFULWLFDOVWDJHRIKLVWULDOZHDIILUPWKHGLVWULFWFRXUWjV
   LLLWKDWHDFKMXURUPXVWGHFLGHWKHFDVHIRUKLPVHOIRU      JUDQWRIDZULWRIKDEHDVFRUSXV
    KHUVHOIEXWRQO\DIWHUDQLPSDUWLDOFRQVLGHUDWLRQRIWKH
    HYLGHQFHZLWKWKHRWKHUMXURUV                                                                    ,
   LYWKDWLQWKHFRXUVHRIGHOLEHUDWLRQVDMXURUVKRXOG          2Q 6HSWHPEHU   )UHQFK VKRW IRXU IHOORZ XQLRQ
    QRW KHVLWDWH WR UHH[DPLQH KLV RU KHU RZQ YLHZV DQG    RIILFLDOV DW WKH )RUG 0RWRU &RPSDQ\5RXJH IDFLOLW\ LQ
    FKDQJH DQ RSLQLRQ LI WKH MXURU LV FRQYLQFHG LW LV     'HDUERUQ0LFKLJDQ$IWHUWULDOWRDMXU\ )UHQFKZDVIRXQG
    HUURQHRXVDQG                                                JXLOW\EXWPHQWDOO\LOORIRQHFRXQWRIILUVWGHJUHHPXUGHU
                                                                   0LFK&RPS/DZVRQHFRXQWRIVHFRQGGHJUHH
   Y WKDW QR MXURU VKRXOG VXUUHQGHU KLV RU KHUKRQHVW   PXUGHU0LFK&RPS/DZVWZRFRXQWVRIDVVDXOW
    FRQYLFWLRQDVWRWKHZHLJKWRUHIIHFWRIWKHHYLGHQFH          ZLWKLQWHQWWRFRPPLWPXUGHU0LFK&RPS/DZV
    VROHO\EHFDXVHRIWKHRSLQLRQRIWKHRWKHUMXURUVRUIRU      DQG RQH FRXQW RI SRVVHVVLRQ RI D ILUHDUP GXULQJ WKH
    WKHPHUHSXUSRVHRIUHWXUQLQJDYHUGLFW                      FRPPLVVLRQRIDIHORQ\0LFK&RPS/DZVE7KH
                                                                   0LFKLJDQWULDOFRXUWVHQWHQFHG)UHQFKWROLIHLPSULVRQPHQW
  E,ILWDSSHDUVWRWKHFRXUWWKDWWKHMXU\KDVEHHQXQDEOH     ZLWKRXWSDUROHIRUWKHILUVWGHJUHHPXUGHUFRQYLFWLRQILIWHHQ
  WRDJUHHWKHFRXUWPD\UHTXLUHWKHMXU\WRFRQWLQXHWKHLU       WRWKLUW\\HDUVLPSULVRQPHQWIRUWKHHDFKRIWKHVHFRQGGHJUHH
  GHOLEHUDWLRQV DQG PD\ JLYH RU UHSHDW DQ LQVWUXFWLRQ DV   PXUGHUDQGDVVDXOWZLWKLQWHQWWRPXUGHUFRQYLFWLRQVDQGWZR
  SURYLGHGLQSDUDJUDSKD7KHFRXUWVKDOOQRWUHTXLUHRU
  WKUHDWHQ WR UHTXLUH WKH MXU\ WR GHOLEHUDWH IRU DQ
  XQUHDVRQDEOHOHQJWKRIWLPHRUIRUXQUHDVRQDEOHLQWHUYDOV           
                                                                        7KHUH ZDV QR GLVSXWH )UHQFK FRPPLWWHG WKH VKRRWLQJV ,QVWHDG WKH

  F7KHMXU\PD\EHGLVFKDUJHGZLWKRXWKDYLQJDJUHHG             LVVXH DW WULDO ZDV )UHQFKjV PHQWDO VWDWH DW WKH WLPH RI WKH VKRRWLQJV   $W


  XSRQDYHUGLFWLILWDSSHDUVWKDWWKHUHLVQRUHDVRQDEOH
                                                                   WULDO )UHQFK SUHVHQWHG H[SHUW WHVWLPRQ\ DQG RWKHU HYLGHQFH WR VKRZ KH
                                                                   ZDV OHJDOO\ LQVDQH RQ WKH GD\ RI WKH VKRRWLQJV EHFDXVH DQ HUURQHRXVO\
  SUREDELOLW\RIDJUHHPHQW                                        SUHVFULEHG RYHUGRVH RI D SRZHUIXO K\SHUWHQVLRQ GUXJ KDG FRPELQHG ZLWK
                                                                   D SUHH[LVWLQJ PHQWDO GLVRUGHU WR PDNH KLP SDUDQRLG DQG SV\FKRWLF       ,Q

3HRSOHY3ROOLFN0LFKo1:G          UHVSRQVH WKH JRYHUQPHQW SUHVHQWHG H[SHUW WHVWLPRQ\ WKDW )UHQFK ZDV

                                                      OHJDOO\ VDQH RQ WKH GD\ RI WKH VKRRWLQJV


                                                                       
  7KHWULDOMXGJHjVVXSSOHPHQWDOLQVWUXFWLRQGLGQRWUHPLQG             0LFKLJDQ ODZ DOORZV D YHUGLFW RI mJXLOW\ EXW PHQWDOO\ LOOl   $00 0LFK
MXURUVWKH\VKRXOGQRWJLYHXSWKHLUKRQHVWFRQYLFWLRQVVROHO\     &RPS   /DZV   7R UHWXUQ VXFK D YHUGLFW D MXU\ PXVW ILQG WKH
                                                                   IROORZLQJ EH\RQG D UHDVRQDEOH GRXEW  WKH GHIHQGDQW LV JXLOW\ RI DQ
EHFDXVHRIWKHRSLQLRQRIWKHRWKHUMXURUVRULQRUGHUWRUHDFK    RIIHQVH  WKH GHIHQGDQW ZDV PHQWDOO\ LOO DW WKH WLPH RI WKH RIIHQVH
DYHUGLFWs$DWo([FOXGLQJWKLVDVSHFWRIDQ$OOHQ     WKH GHIHQGDQW ZDV QRW OHJDOO\ LQVDQH DW WKH WLPH RI WKH RIIHQVH 6HH
LQVWUXFWLRQLQFUHDVHVLWVFRHUFLYHHIIHFW6HH8QLWHG6WDWHVY   0LFK &RPS /DZV   $ SHUVRQ IRXQG JXLOW\ EXW PHQWDOO\ LOO LV
%XUJRV  )G  o WK &LU  sLPLQH] Y   VHQWHQFHG WKH VDPH DV LI KH ZHUH VLPSO\ IRXQG JXLOW\ RI WKH RIIHQVH
0\HUV)GQWK&LUm$WULDOFRXUWjV      0LFK &RPS /DZV   7KH RQO\ GLIIHUHQFH EHWZHHQ WKH WZR

IDLOXUHWRJLYHVXFKDFDXWLRQDU\LQVWUXFWLRQZHLJKVKHDYLO\LQ    YHUGLFWV LV WKDW WKH GHSDUWPHQW RI FRUUHFWLRQV LV UHVSRQVLEOH IRU HYDOXDWLQJ
                                                                   WKH GHIHQGDQW DQG SURYLGLQJ DQ\ UHTXLUHG SV\FKLDWULF WUHDWPHQW 6HH LG
     )UHQFKYsRQHV                               1R      1R                                     )UHQFKYsRQHV         

\HDUVFRQVHFXWLYHLPSULVRQPHQWIRUWKHILUHDUPFRQYLFWLRQ                                               %
$WWULDOWZRDWWRUQH\V&RUQHOLXV3LWWVDQG0RQVH\:LOVRQ
UHSUHVHQWHG )UHQFK  7\ sRQHV ZDV DOVR SUHVHQW DW GHIHQVH      :HDOVRQRWHWKDWWKHWULDOMXGJHjVVXSSOHPHQWDOLQVWUXFWLRQ
FRXQVHOjVWDEOHIRUSRUWLRQVRIWKHWULDO                          VLJQLILFDQWO\GHYLDWHGIURPWKHPRGHO0LFKLJDQLQVWUXFWLRQ
                                                                     DQG OLNHO\ KDG D VXEVWDQWLDO DQG LQMXULRXV LQIOXHQFH RQ WKH
  7KH FRQIXVLRQ VXUURXQGLQJ WKLV FDVH VWHPV IURP               MXU\jVYHUGLFW6HH%DUNHUY<XNLQV)Go
UHSUHVHQWDWLRQVPDGHE\3LWWVDQG:LOVRQ$WWKHEHJLQQLQJ          WK &LU  KROGLQJ WKH SHWLWLRQHU PHW  GjV
RIWKHWULDO3LWWVLQWURGXFHGsRQHVWRWKHSURVHFXWRUDQGWULDO     mXQUHDVRQDEOH DSSOLFDWLRQl VWDQGDUG E\ VKRZLQJ WKH WULDO
MXGJHDVDQDWWRUQH\IURP&DOLIRUQLDZKRVSHFLDOL]HGLQMXU\         FRXUWjV IDLOXUH WR JLYH D SURSHU MXU\ LQVWUXFWLRQ KDG D
VHOHFWLRQ3LWWVVDLGsRQHVZDVSUHVHQWWRDVVLVWZLWKWKHWULDO   VXEVWDQWLDO DQG LQMXULRXV HIIHFW RQ WKH MXU\jV YHUGLFW  ,Q
%DVHGRQ3LWWVjVUHSUHVHQWDWLRQWKHWULDOMXGJHDOORZHGsRQHV       6XOOLYDQY3HRSOH0LFK1:G
WRUHPDLQDWWKHGHIHQVHWDEOH                                     0LFKLJDQDGRSWHGWKH$PHULFDQ%DU$VVRFLDWLRQjVm$%$l
                                                                     VWDQGDUGMXU\LQVWUXFWLRQIRUDGGUHVVLQJDGHDGORFNHGMXU\
  'XULQJMXU\VHOHFWLRQ3LWWVLQWURGXFHGsRQHVDVmFRXQVHO          6XOOLYDQ  0LFK DW o  1:G DW 
IURP&DOLIRUQLDlZKRZDVDVVLVWLQJZLWKWKHWULDOsRQHVZDV        0LFKLJDQ DGRSWHG WKH $%$jV VWDQGDUG LQVWUXFWLRQ WR
SUHVHQWDWWKHGHIHQVHWDEOHHYHU\GD\RIWULDOEXWQHYHUVSRNH      PLQLPL]H DQ\ FRHUFLYH HIIHFW RI MXU\ LQVWUXFWLRQV JLYHQ
LQWKHSUHVHQFHRIWKHMXU\                                       SXUVXDQWWR$OOHQY8QLWHG6WDWHV86$W
                                                                     WKHWLPHRI)UHQFKjVWULDO$%$VWDQGDUGMXU\LQVWUXFWLRQ
   $WWKHHYLGHQWLDU\KHDULQJKHOGLQWKLVPDWWHUWKHGLVWULFW      UHDG
FRXUWOHDUQHGsRQHVZDVQRWDOLFHQVHGDWWRUQH\:KLOHKHKDG
DWWHQGHG RQH \HDU RI ODZ VFKRRO DW 1HZ <RUN 8QLYHUVLW\       D%HIRUHWKHMXU\UHWLUHVIRUGHOLEHUDWLRQWKHFRXUWPD\
sRQHVZRUNHGDVDPRWLRQSLFWXUHFRQVXOWDQWDQGVFUHHQZULWHU           JLYHDQLQVWUXFWLRQZKLFKLQIRUPVWKHMXU\
LQ/RV$QJHOHVsRQHVREVHUYHGWKHWULDODVEDFNJURXQGIRU
WKHGHYHORSPHQWRIDWHOHYLVLRQVHULHVEDVHGRQWKH'HWURLW             L WKDW LQ RUGHU WR UHWXUQ D YHUGLFW HDFK MXURUPXVW
OHJDOV\VWHP                                                          DJUHHWKHUHWR
  $WWKHHYLGHQWLDU\KHDULQJ3LWWVWHVWLILHGWKDWsRQHVWROGKLP
WKDWKHZDVDODZ\HU$OWKRXJK3LWWVGLGQRWLQWHQGIRUsRQHV
WR SDUWLFLSDWHLQWKHWULDO3LWWVVDLGKHLQWURGXFHGsRQHV DV         
                                                                           6XOOLYDQ KHOG WKDW mDQ\ VXEVWDQWLDO GHSDUWXUHl IURP $%$ VWDQGDUG
mFRXQVHOIURP&DOLIRUQLDlWRJLYHWKHLPSUHVVLRQRIDODUJH          LQVWUXFWLRQ  ZRXOG EH JURXQGV IRU UHYHUVLEOH HUURU 6XOOLYDQ  0LFK
GHIHQVHWHDP                                                       DW   1:G DW  ,Q 3HRSOH Y +DUGLQ  0LFK  
                                                                     1:G   WKH 0LFKLJDQ 6XSUHPH &RXUW KHOG WKDW VXEVWDQWLDO
  )UHQFKjV WULDO WRRN PRUH WKDQ WZR ZHHNV EHIRUH EHLQJ       GHYLDWLRQ IURP $%$ VWDQGDUG MXU\ LQVWUXFWLRQ  RQO\ ZDUUDQWHG UHYHUVDO

VXEPLWWHGWRWKHMXU\$IWHUUHFHLYLQJWKHLULQVWUXFWLRQVDQG       LI WKH JLYHQ LQVWUXFWLRQ ZDV XQGXO\ FRHUFLYH +DUGLQ  0LFK DW
                                                                     o  1:G DW  ,Q GHFLGLQJ LI DQ LQVWUXFWLRQ ZDV XQGXO\
FKRRVLQJDIRUHSHUVRQWKHMXU\UHFHVVHGRQ7KXUVGD\$SULO          FRHUFLYH D FRXUW FRQVLGHUV  ZKHWKHU WKH LQVWUXFWLRQ FDQ FDXVH D MXURU
7KHMXU\UHFRQYHQHGDQGEHJDQGHOLEHUDWLQJWKH            WR DEDQGRQ KLV FRQVFLHQWLRXV GLVVHQW DQG GHIHU WR WKH PDMRULW\ LQ RUGHU WR
PRUQLQJRI)ULGD\$SULO'XULQJWKDWGD\WKHMXU\        UHDFK DQ DJUHHPHQW  ZKHWKHU WKH WULDO FRXUW UHTXLUHG RU WKUHDWHQHG WR
WZLFHUHTXHVWHGFRSLHVRIWULDOPDWHULDOV2QERWKRFFDVLRQV       UHTXLUH WKH MXU\ WR GHOLEHUDWH IRU DQ XQUHDVRQDEOH OHQJWK RI WLPH RU IRU
WKHSURVHFXWRU:LOVRQDQGWKHWULDOMXGJHGLVFXVVHGWKHQRWHV      XQUHDVRQDEOH LQWHUYDOV RU  ZKHWKHU WKH LQVWUXFWLRQV FDOO IRU WKH MXU\ WR
                                                                     H[HUFLVH LWV FLYLF GXW\ LQ UHDFKLQJ D XQDQLPRXV YHUGLFW FRQWDLQV WKH
DQGVHQWWKHUHTXHVWHGPDWHULDOVWRWKHMXU\                      PHVVDJH WKDW WKHLU IDLOXUH WR UHDFK D YHUGLFW LV D IDLOXUH RI WKH MXU\jV
                                                                     SXUSRVH ,G DW   1:G DW 
    )UHQFKYsRQHV                                1R       1R                                      )UHQFKYsRQHV           

VWDWLQJWKDWmWKHULJKWWRFRXQVHOLVµVREDVLFWRDIDLUWULDOWKDW     /DWHRQ)ULGD\DIWHUQRRQWKHMXU\VHQWRXWDWKLUGQRWHWR
>LWV@ LQIUDFWLRQ FDQ QHYHU EH WUHDWHG DV KDUPOHVV HUURUjl     ZKLFKWKHWULDOMXGJHGLGQRWLPPHGLDWHO\UHVSRQG,QVWHDG
3HQVRQY2KLR86TXRWLQJ&KDSPDQY             WKHWULDOMXGJHUHFHVVHGWKHWULDODQGH[FXVHGWKHMXU\IRUWKH
&DOLIRUQLD  86     $V WKH &RXUW PRVW      ZHHNHQG
UHFHQWO\ VWDWHG LQ D KDEHDV FDVH m>W@KH H[LVWHQFH RI
>VWUXFWXUDO@ GHIHFWVoGHSULYDWLRQ RI WKH ULJKW WR FRXQVHO IRU     2QWKHPRUQLQJRI0RQGD\0D\WKHWULDOMXGJH
H[DPSOHoUHTXLUHV DXWRPDWLF UHYHUVDO RI WKH FRQYLFWLRQ             UHDGWKHQRWHWR3LWWVDQGWKHSURVHFXWRUm:HFDQjWUHDFKD
EHFDXVH WKH\ LQIHFW WKH HQWLUH WULDO SURFHVVl  %UHFKW Y     XQDQLPRXVGHFLVLRQ2XUPLQGVDUHVHWl3LWWVUHTXHVWHGD
$EUDKDPVRQ86o                               PLVWULDOEXWWKHWULDOMXGJHUHDGWKHMXU\0LFKLJDQjVVWDQGDUG
                                                                       GHDGORFNHGMXU\LQVWUXFWLRQ7KHMXU\FRQWLQXHGWRGHOLEHUDWH
   )XUWKHUPRUHWKHDSSHOODQWZURQJO\FKDUDFWHUL]HV5XVKHQ            XQWLOODWHDIWHUQRRQZKHQWKH\VHQWRXWDVHFRQGQRWH7KH
,Q 5XVKHQ WKH &RXUW GLG QRW VD\ KDUPOHVV HUURU DQDO\VLV      VHFRQGQRWHDOVRVDLGWKHMXU\ZDVXQDEOHWRUHDFKDGHFLVLRQ
DSSOLHVWRHYHU\RFFXUUHQFHRIDWWRUQH\DEVHQFHDWDFULWLFDO          7KHWULDOMXGJHDJDLQUHFHVVHGWKHWULDODQGH[FXVHGWKHMXU\
VWDJH RI WULDO  ,QVWHDG WKH &RXUW KHOG WKDW H[ SDUWH       IRUWKHGD\
FRPPXQLFDWLRQV EHWZHHQ D MXGJH DQG MXURU VKRXOG EH
DQDO\]HG IRU KDUPOHVV HUURU EHFDXVH mµLW LV YLUWXDOO\              $W  DP RQ 0D\   WKH WULDO MXGJH DJDLQ
LPSRVVLEOHWRVKLHOGMXURUVIURPHYHU\FRQWDFWRULQIOXHQFH            LQVWUXFWHG WKH MXU\ DQG GLUHFWHG WKHP WR FRQWLQXH
WKDWPLJKWWKHRUHWLFDOO\DIIHFWWKHLUYRWHjl5XVKHQ86        GHOLEHUDWLRQV$IWHUFRQWLQXLQJGHOLEHUDWLRQVWKHMXU\VHQWRXW
DW o TXRWLQJ 6PLWK Y 3KLOOLSV  86         DWKLUGQRWHDWDPm:HDUHQRWDEOHWRUHDFKDYHUGLFW
                                                               :H DUH QRW JRLQJ WR UHDFK D YHUGLFWl  7KH WULDO MXGJH
                                                                       UHVSRQGHGE\VHQGLQJWKHMXU\WROXQFKDQGLQVWUXFWLQJWKH
   7KH SUHVHQW FDVH LV YDVWO\ GLIIHUHQW IURP WKH LQFLGHQWDO    SDUWLHVWRDSSHDUDWSP
FRQWDFWEHWZHHQDMXGJHDQGMXURUDWLVVXHLQ5XVKHQ,QWKLV
FDVHWKHWULDOMXGJHGHOLYHUHGDVXSSOHPHQWDOLQVWUXFWLRQWRD           $WSPQHLWKHU3LWWVQRU:LOVRQKDGUHWXUQHGWRWKH
GHDGORFNHG MXU\  )UHQFKjV DWWRUQH\V GLG QRW KDYH DQ           FRXUWURRP7KHWULDOMXGJHDVNHGsRQHVZKRZDVSUHVHQWWR
RSSRUWXQLW\WRUHVSRQGWRWKHMXU\jVQRWHQRUZHUHWKH\SUHVHQW        FRQWDFWWKHWZRDWWRUQH\VsRQHVZDVXQDEOHWRFRQWDFW3LWWV
ZKHQWKHWULDOMXGJHJDYHWKHVXSSOHPHQWDOLQVWUXFWLRQ7KH           RU:LOVRQ$WSPZLWKRXW3LWWVRU:LOVRQSUHVHQWWKH
XQFHUWDLQW\RIWKHSUHMXGLFH)UHQFKVXIIHUHGEHFDXVHKHZDV            WULDOMXGJHEURXJKWWKHMXU\LQDQGJDYHWKHPDVXSSOHPHQWDO
QRWUHSUHVHQWHGE\FRXQVHOGXULQJWKLVFULWLFDOVWDJHRIKLVWULDO     MXU\LQVWUXFWLRQ8QOLNHWKHILUVWWZRLQVWUXFWLRQVWKHWKLUG
PDNHVWKHRXWFRPHRIKLVWULDOXQUHOLDEOH6HH5RH86          LQVWUXFWLRQZDVQRWWKHVWDQGDUGGHDGORFNHGMXU\LQVWUXFWLRQ
DW&URQLF86DWQ
  &URQLFFRUUHFWO\VXPPDUL]HVIHGHUDOODZZKHQLWVWDWHVWKDW              
                                                                             7KH UHOHYDQW SDUW RI WKH WULDO MXGJHjV WKLUG LQVWUXFWLRQ WR WKH MXU\ LV
DEVHQFHRIFRXQVHOGXULQJDFULWLFDOVWDJHRIDWULDODPRXQWVWR       DV IROORZV
FRQVWLWXWLRQDOHUURU&URQLF86DWQ,QOLJKWRI
FOHDUIHGHUDOODZWKH0LFKLJDQFRXUWVXQUHDVRQDEO\DSSOLHG                7+( &2857 1RZ ODGLHV DQG JHQWOHPHQ , PXVW UHPLQG \RX
KDUPOHVV HUURU DQDO\VLV WR )UHQFKjV GHSULYDWLRQ RI FRXQVHO          WKDW \RX GLG WDNH DQ RDWK WR UHQGHU D WUXH DQG MXVW YHUGLFW %XW LI

GXULQJ WKH VXSSOHPHQWDO LQVWUXFWLRQ  7KH GLVWULFW FRXUW            \RX DUH WR EH H[SHFWHG WR UHQGHU D YHUGLFW \RX PXVW
                                                                           FRPPXQLFDWH DQG \RX PXVW WDON ZLWK HDFK RWKHU
SURSHUO\JUDQWHGWKHZULWRIKDEHDVFRUSXV                                     7KLV FDVH ODVWHG KRZ PDQ\ GD\V 0U +XWWLQJ"
                                                                           $SSUR[LPDWHO\  GD\V"
                                                                           05 +877,1* )RXUWHHQ GD\V WULDO )RU MXU\ VHOHFWLRQ o
     )UHQFKYsRQHV                                     1R   1R                                 )UHQFKYsRQHV       

7KHWULDOMXGJHGLVPLVVHGWKHMXU\IRUWKHGD\DSSUR[LPDWHO\            DFFXVHGLVGHQLHGFRXQVHODWDFULWLFDOVWDJHRIKLVWULDOlLVDQ
RQHKRXUDIWHUJLYLQJWKHVXSSOHPHQWDOLQVWUXFWLRQ                    DFFXUDWH VWDWHPHQW RI ODZ  ,G DW   %HFDXVH :LOOLDPV
                                                                        LQVWUXFWV FRXUWV WR UHO\ RQO\ RQ WKH KROGLQJ RI FDVHV ZKHQ
  7KHQH[WPRUQLQJ3LWWVUHTXHVWHGDPLVWULDOEHFDXVHKHIHOW          GHFLGLQJFOHDUO\HVWDEOLVKHGIHGHUDOODZIRUKDEHDVSHWLWLRQ
WKH WULDO MXGJHjV VXSSOHPHQWDO LQVWUXFWLRQ ZDV FRHUFLYH          SXUSRVHV:LOOLDPV86DWWKHDSSHOODQWVD\VWKH
:KLOH3LWWVZDVDUJXLQJIRUDPLVWULDOWKHMXU\UHWXUQHGLWV           GLVWULFWFRXUWVKRXOGQRWKDYHUHOLHGRQWKLVVWDWHPHQWRIODZ
YHUGLFW                                                                EHFDXVHWKHODQJXDJHZDVQRWDSSOLFDEOHWR&URQLFjVXOWLPDWH
                                                                        KROGLQJ
   )UHQFKPRYHGWKH0LFKLJDQWULDOFRXUWWRRUGHUDQHZWULDO
DUJXLQJKHZDVSUHMXGLFHGEHFDXVHKLVDWWRUQH\VKDGQRWEHHQ              ,QVWHDGWKHDSSHOODQWVD\VWKHIDFWVRIWKLVFDVHUHVHPEOH
SUHVHQWGXULQJWKHWKLUGVXSSOHPHQWDOMXU\LQVWUXFWLRQ7KH            WKRVHLQ5XVKHQY6SDLQ86,Q5XVKHQ
WULDO MXGJH QRWHG )UHQFKjV DUJXPHQW KDG VRPH PHULW EXW         WKH&RXUWDSSOLHGKDUPOHVVHUURUDQDO\VLVWRDWULDOMXGJHjVH[
GHQLHGWKHPRWLRQIRUDQHZWULDO                                     SDUWHFRPPXQLFDWLRQVZLWKDMXURUDERXWWKHMXURUjVSHUVRQDO
                                                                        LQWHUDFWLRQZLWKDSROLFHLQIRUPDQWFXUUHQWO\WHVWLI\LQJEHIRUH
 2QsXO\WKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG              WKH MXURU  5XVKHQ  86 DW o  1HLWKHU GHIHQVH
WKHSHWLWLRQHUjVFRQYLFWLRQV7KHFRXUWKHOGWKDWWKHDEVHQFH          FRXQVHO QRU WKH SURVHFXWRU OHDUQHG RI WKH H[ SDUWH
RI GHIHQVH FRXQVHO GXULQJ D FULWLFDO VWDJH RI WKH WULDO ZDV   FRPPXQLFDWLRQVXQWLODIWHUWKHWULDO
VXEMHFWWRKDUPOHVVHUURUDQDO\VLV7KHFRXUWRIDSSHDOVIRXQG
WKHHUURUKDUPOHVVLQ)UHQFKjVFDVH2Q6HSWHPEHU              7KH5XVKHQ&RXUWIRXQGWKDWWKHSRVWWULDOKHDULQJKHOGRQ
WKH0LFKLJDQ6XSUHPH&RXUWGHQLHGWKHSHWLWLRQHUOHDYHWR               WKHPDWWHUSURYLGHGVXIILFLHQWHYLGHQFHWKHFRPPXQLFDWLRQ
DSSHDO                                                                EHWZHHQWKHMXGJHDQGMXURUZDVLQQRFXRXVDQGWKDWQRELDV
                                                                        LQIHFWHGWKHMXU\jVGHOLEHUDWLRQV,G7KHDSSHOODQWVD\VWKH
                                                                        &RXUWjV XVH RI KDUPOHVV DQDO\VLV LQ 5XVKHQ VXSSRUWV KLV
                                                                        DVVHUWLRQWKDWZHVKRXOGDQDO\]HWKHSUHVHQWFDVHIRUKDUPOHVV
                                                                        HUURU
    7+( &2857 $OO ULJKW 6R LW ZRXOGQjW EH XQFRPPRQ IRU
    GHOLEHUDWLRQV WR JR RQ IRU VRPH WLPH DQG , PLJKW UHPLQG \RX WKDW     :H GLVDJUHH  'HVSLWH WKH DSSHOODQWjV DWWHPSW WR
    \RX EHJDQ WR GHOLEHUDWH , WKLQN )ULGD\ DQG , GRQjW NQRZ KRZ
    \RX FDQ FRPH WR WKH FRQFOXVLRQ WKDW \RX DUH QRW JRLQJ WR UHDFK
                                                                        FKDUDFWHUL]H&URQLFjVODQJXDJHDVGLFWDWKH&RXUWKDVRIWHQ
    D YHUGLFW                                                          KHOGERWKEHIRUHDQGDIWHU&URQLFWKDWDEVHQFHRIFRXQVHO
         %DVHG XSRQ \RXU RDWK WKDW \RX ZRXOG UHDFK D WUXH DQG MXVW      GXULQJDFULWLFDOVWDJHRIDWULDOLVSHUVHUHYHUVLEOHHUURU6L[
    YHUGLFW ZH H[SHFW \RX ZLOO FRPPXQLFDWH $V , VWDWHG EHIRUH        \HDUVEHIRUH&URQLFWKH&RXUWKHOGLQ+ROORZD\Y$UNDQVDV
    H[FKDQJH LGHDV *LYH \RXU YLHZV *LYH \RXU RSLQLRQV DQG WU\         86WKDWmZKHQDGHIHQGDQWLVGHSULYHGRI
    WR FRPH WR D YHUGLFW LI DW DOO SRVVLEOH
         %XW LI \RX GRQjW FRPPXQLFDWH \RX NQRZ WKDW \RX FDQjW
                                                                        WKHSUHVHQFHDQGDVVLVWDQFHRIKLVDWWRUQH\HLWKHUWKURXJKRXW
    UHDFK D YHUGLFW $QG ZKHQ \RX WRRN WKH RDWK WKDW ZDV RQH RI WKH
                                                                        WKH SURVHFXWLRQ RU GXULQJ D FULWLFDO VWDJH LQ DW OHDVW WKH
    SURPLVHV WKDW \RX PDGH E\ UDLVLQJ \RXU KDQG WDNLQJ WKH RDWK        SURVHFXWLRQ RI D FDSLWDO RIIHQVH UHYHUVDO LV DXWRPDWLFl
    WKDW \RX ZRXOG GHOLEHUDWH XSRQ D YHUGLFW WR WU\ WR UHDFK D         +ROORZD\86DWFLWLQJ*LGHRQY:DLQZULJKW
    YHUGLFW $QG ZH WROG \RX DW WKH RXWVHW LW ZRXOG QRW EH DQ HDV\      86DQG:KLWHY0DU\ODQG86
    WDVN EXW ZH NQRZ WKDW \RX FDQ ULVH WR WKH RFFDVLRQ
         6R ZHjOO DVN WKDW \RX UHWXUQ WR WKH MXU\ URRP
                                                                          )RXU \HDUV DIWHU&URQLF WKH &RXUW UHLWHUDWHG WKDW
         7KDQN \RX
                                                                        KDUPOHVVHUURUDQDO\VLVGRHVQRWDSSO\WR6L[WK$PHQGPHQW
                                                                        FODLPVLQYROYLQJWKHDEVHQFHRIFRXQVHODWDFULWLFDOVWDJHE\
s$ DW o
       )UHQFKYsRQHV                                   1R        1R                                   )UHQFKYsRQHV          

VXIIHUHGDWRWDOGHSULYDWLRQRIFRXQVHO7KHDSSHOODQWVD\V                   2Q 2FWREHU   WKH SHWLWLRQHU ILOHG D SHWLWLRQ LQ
WKHSUHVHQWFDVHGRHVQRWLQYROYHWKHFRPSOHWHGHSULYDWLRQRI                 IHGHUDOFRXUWIRUDZULWRIKDEHDVFRUSXV2Q0DUFK
FRXQVHO EHFDXVH WKH WULDO FRXUWjV DFWLRQV GLG QRW SUHYHQW             WKHGLVWULFWFRXUWJUDQWHGWKHZULW$VGLVFXVVHGDERYHWKH
FRXQVHOIURPDGYLVLQJ)UHQFK:LWKRXWVXFKDQDFWE\WKH                     ZDUGHQDSSHDOHGDQGZHYDFDWHGWKHGLVWULFWFRXUWjVGHFLVLRQ
WULDOFRXUWWKHDSSHOODQWVD\V)UHQFKjVODFNRIFRXQVHOGXULQJ               DQGUHPDQGHGIRUDQHYLGHQWLDU\KHDULQJ
WKHVXSSOHPHQWDOLQVWUXFWLRQLVQRWDGHSULYDWLRQEHFDXVHLW
GRHVQRWIDOOZLWKLQDQ\RIWKHIDFWSDUDGLJPVWKH6XSUHPH                      1RZZLWKDIXOO\GHYHORSHGUHFRUGEHIRUHXVZHUHYLHZ
&RXUWGHVFULEHVDVGHSULYDWLRQVXQGHUWKH6L[WK$PHQGPHQW                    WKHGLVWULFWFRXUWjVGHFLVLRQWRJUDQW)UHQFKjVSHWLWLRQIRUD
                                                                              ZULWRIKDEHDVFRUSXV$VJURXQGVIRUWKHZULW)UHQFKDUJXHV
  $V IXUWKHU VXSSRUW IRU LWV SRVLWLRQ WKDW WKH GLVWULFW FRXUW        WKDWWKH0LFKLJDQWULDOMXGJHGHQLHGKLVFRQVWLWXWLRQDOULJKWWR
HUUHG WKH DSSHOODQW DUJXHV WKH GLVWULFW FRXUWjV UHOLDQFH RQ          WKHDVVLVWDQFHRIFRXQVHOZKHQLWVXSSOHPHQWHGLWVLQVWUXFWLRQ
&URQLFLVPLVSODFHG,Q&URQLFWKH&RXUWUHYHUVHGWKHFRXUW                 WRWKHMXU\ZKHQQHLWKHURIKLVDWWRUQH\VZHUHSUHVHQW
RIDSSHDOVjLQIHUHQFHWKDWDGHIHQGDQWKDGUHFHLYHGLQHIIHFWLYH
DVVLVWDQFHRIFRXQVHOEHFDXVHRIWKHDWWRUQH\jVLQH[SHULHQFH                                                    ,,
OLPLWHGDFFHVVWRZLWQHVVHVDQGVKRUWWLPHWRLQYHVWLJDWHDQG
SUHSDUHIRUDFRPSOH[WULDO&URQLF86DW7KH                     :HUHYLHZDGLVWULFWFRXUWjVJUDQWRIKDEHDVUHOLHIGHQRYR
&RXUWUHPDQGHGWKHFDVHWRFRQVLGHUZKHWKHUVSHFLILFDOOHJHG                  6HHHJ+DUSVWHUY2KLR)GWK&LU
HUURUVPDGHE\GHIHQVHFRXQVHOZHUHVXIILFLHQWWRVXSSRUWDQ
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP,GDWo7KH                   ,QGHWHUPLQLQJZKHWKHUWRLVVXHDKDEHDVZULWWKHGLVWULFW
DSSHOODQW DFNQRZOHGJHV &URQLFjV VWDWHPHQW LQ GLFWD WKDW                 FRXUWjVUHYLHZ RIDVWDWHFRXUWGHFLVLRQLVJRYHUQHGE\WKH
m>W@KH SUHVXPSWLRQ WKDW FRXQVHOjV DVVLVWDQFH LV HVVHQWLDO               VWDQGDUGVVHWIRUWKLQWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK
UHTXLUHV >D FRXUW@ WR FRQFOXGH WKDW D WULDO LV XQIDLU LI WKH       3HQDOW\$FWRI86&HWVHTm$('3$l
                                                                              ,G  7KH $('3$ RQO\ SURYLGHV KDEHDV UHOLHI IRU D VWDWH
                                                                              SULVRQHULQFHUWDLQFLUFXPVWDQFHV
     
       7KH DSSHOODQW VD\V WKH IROORZLQJ FDVHV GHVFULEH VWUXFWXUDO HUURUV        G$QDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVRQEHKDOI
EHFDXVH WKH\ LQYROYH WKH WRWDO GHSULYDWLRQ RI FRXQVHO *HGHUV Y 8QLWHG         RIDSHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRID6WDWH
6WDWHV  86   D WULDO FRXUWjV RUGHU SUHYHQWLQJ D GHIHQGDQW
                                                                                FRXUWVKDOOQRWEHJUDQWHGZLWKUHVSHFWWRDQ\FODLPWKDW
IURP FRQVXOWLQJ ZLWK KLV DWWRUQH\ DW DOO GXULQJ D UHFHVV EHWZHHQ KLV GLUHFW
DQG FURVVH[DPLQDWLRQ +HUULQJ Y 1HZ <RUN  86   WKH
                                                                                ZDVDGMXGLFDWHGRQWKHPHULWVLQ6WDWHFRXUWSURFHHGLQJV
WULDO FRXUWjV UHIXVDO WR DOORZ FRXQVHO WR EH KHDUG LQ VXPPDWLRQ RI WKH
                                                                                XQOHVVWKHDGMXGLFDWLRQRIWKHFODLPo
HYLGHQFH %URRNV Y 7HQQHVVHH  86   D VWDWXWH UHTXLULQJ         UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU
D GHIHQGDQW WR WHVWLI\ EHIRUH DQ\ RWKHU GHIHQVH HYLGHQFH ZDV SUHVHQWHG          LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\
GHSULYHG WKH GHIHQGDQW RI WKH DGYLFH RI FRXQVHO LQ PDNLQJ WKH GHFLVLRQ        HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH
:KLWH Y 0DU\ODQG  86   WKH GHQLDO RI FRXQVHO DW D
SUHOLPLQDU\ KHDULQJ ZKHUH D SOHD ZDV HQWHUHG *LGHRQ Y :DLQULJKW 
                                                                                &RXUWRIWKH8QLWHG6WDWHVRU
86   WRWDO GHSULYDWLRQ RI WKH ULJKW WR FRXQVHO GXULQJ WULDO
+DPLOWRQ Y $ODEDPD  86   WKH GHQLDO RI FRXQVHO DW
DUUDLJQPHQW WKH VWDJH DW ZKLFK LQVDQLW\ PXVW EH SOHDGHG RU WKH GHIHQVH
IRUIHLWHG )HUJXVRQ Y *HRUJLD  86   D VWDWXWH SHUPLWWLQJ
                                                                                  
WKH DGPLVVLRQ RQO\ RI WKH GHIHQGDQWjV XQVZRUQ VWDWHPHQW DQG WKH GHQLDO              :H GHFLGH WKLV FDVH XQGHU WKH $('3$ EHFDXVH )UHQFK ILOHG KLV
RI WKH ULJKW WR KDYH FRXQVHO H[DPLQH WKH GHIHQGDQW UHJDUGLQJ LW :LOOLDPV    SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV LQ 2FWREHU  ZHOO DIWHU $('3$jV
Y .DLVHU  86   WKH UHIXVDO WR DSSRLQW FRXQVHO EHIRUH         HIIHFWLYH GDWH RI $SULO   6HH %DUNHU Y <XNLQV  )G  
HQWU\ RI WKH GHIHQGDQWjV SOHD                                               WK &LU 
      )UHQFKYsRQHV                                 1R      1R                                 )UHQFKYsRQHV         

   UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ                                               $
  XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH
  HYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ                        %RWK SDUWLHV DJUHH WKDW mWKH FRPSOHWH GHQLDO RI FRXQVHO
86&G                                            GXULQJ D FULWLFDO VWDJH RI D MXGLFLDO SURFHHGLQJ PDQGDWHV D
                                                                        SUHVXPSWLRQRISUHMXGLFHl5RHY)ORUHV2UWHJD86
   7KHTXHVWLRQRIZKHWKHUWKHWULDOMXGJHGHSULYHG)UHQFKRI           VHHDOVR8QLWHG6WDWHVY&URQLF86
KLVULJKWWRFRXQVHOGXULQJWKHVXSSOHPHQWDOMXU\LQVWUXFWLRQ           Q,QRXURUGHUUHPDQGLQJWKLVFDVHWRWKH
LV D PL[HG TXHVWLRQ RI ODZ DQG IDFW  6HH 6WULFNODQG Y      GLVWULFWFRXUWIRUDQHYLGHQWLDU\KHDULQJZHDJUHHGZLWKWKH
:DVKLQJWRQ86,QDKDEHDVFDVHZH             GLVWULFWFRXUWWKDWDVXSSOHPHQWDOMXU\LQVWUXFWLRQLVDmFULWLFDO
DSSO\WKHmXQUHDVRQDEOHDSSOLFDWLRQlSURQJRIGWR           VWDJHlRIDFULPLQDOSURFHHGLQJ)UHQFK:/
D PL[HG TXHVWLRQ RI ODZ DQG IDFW  6HH  86&              DWFLWLQJ5RJHUVY8QLWHG6WDWHV86DQG
G+DUSVWHU)GDWo                            6KLHOGV Y 8QLWHG 6WDWHV  86   VHH DOVR
                                                                        &XUWLVY'XYDO)GVW&LU,QRXUSUHYLRXV
   7KHUHFHQW6XSUHPH&RXUWGHFLVLRQRI:LOOLDPVY7D\ORU             GHFLVLRQ LQ WKLV PDWWHU ZH QRWHG WKDW WKH 0LFKLJDQ FRXUWV
86FODULILHGWKHPHDQLQJRIWKHRSHUDWLYH             FRQFHGHGWKDWWKHVXSSOHPHQWDOLQVWUXFWLRQZDVDFULWLFDOVWDJH
FODXVHVLQG:LOOLDPVVWDWHGWKDWIHGHUDOFRXUWVDUH        RIWKHWULDO6HH)UHQFK:/DWQ,Q
WRILQGmFOHDUO\HVWDEOLVKHG)HGHUDOODZlLQWKHKROGLQJVRIWKH        OLJKWRIRXUKROGLQJZHUHPDQGHGWKHFDVHWRGHWHUPLQHWKH
6XSUHPH &RXUW DV RSSRVHG WR LWV GLFWD DW WKH WLPH RI WKH   H[DFWQDWXUHRIsRQHVjVSDUWLFLSDWLRQDWWKHWULDO
UHOHYDQWVWDWHFRXUWGHFLVLRQ:LOOLDPV86DWVHH
DOVR+DUULVY6WRYDOO)GWK&LU                 2QFHWKHHYLGHQWLDU\KHDULQJHVWDEOLVKHGsRQHVZDVQRWDQ
                                                                        DWWRUQH\)UHQFKDUJXHGWKH6XSUHPH&RXUWKDVmXQLIRUPO\
  :LOOLDPVWKHQZHQWRQWRFODULI\WKHVLWXDWLRQVLQZKLFKD            IRXQGFRQVWLWXWLRQDOHUURUZLWKRXWDQ\VKRZLQJRISUHMXGLFH
FRXUWFRXOGJUDQWDZULWRIKDEHDVFRUSXVXQGHUG          ZKHQ FRXQVHO ZDV HLWKHU WRWDOO\ DEVHQW RU SUHYHQWHG IURP
                                                                        DVVLVWLQJ WKH DFFXVHG GXULQJ D FULWLFDO VWDJH RI WKH
      8QGHUWKHmFRQWUDU\WRlFODXVHDIHGHUDOKDEHDVFRXUW            SURFHHGLQJl  &URQLF  86 DW  Q  6LQFH WKH
    PD\ JUDQW WKH ZULW LI WKH VWDWH FRXUW DUULYHV DW D        VXSSOHPHQWDOMXU\LQVWUXFWLRQZDVDFULWLFDOVWDJHRIWKHWULDO
    FRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\WKLV&RXUWRQD              )UHQFKVDLGUHYHUVDOVKRXOGEHDXWRPDWLF7KHGLVWULFWFRXUW
    TXHVWLRQ RI ODZ RU LI WKH VWDWH FRXUW GHFLGHV D FDVH      DJUHHGZLWK)UHQFK&LWLQJ&URQLFWKHGLVWULFWFRXUWIRXQGD
    GLIIHUHQWO\ WKDQ WKLV &RXUW KDV RQ D VHW RI PDWHULDOO\     VWUXFWXUDO GHIHFW OLNH WKH GHSULYDWLRQ RI FRXQVHO GXULQJ D
    LQGLVWLQJXLVKDEOH IDFWV  8QGHU WKH mXQUHDVRQDEOH              FULWLFDO VWDJH RI WKH WULDO UHTXLUHG DXWRPDWLF UHYHUVDO  6HH
    DSSOLFDWLRQlFODXVHDIHGHUDOKDEHDVFRXUWPD\JUDQWWKH           )UHQFK)6XSSGDW
    ZULW LI WKH VWDWH FRXUW LGHQWLILHV WKH FRUUHFW JRYHUQLQJ
    OHJDO SULQFLSOH IURP WKLV &RXUWjV GHFLVLRQV EXW                 0LFKLJDQ DUJXHV WKH GLVWULFW FRXUW HUUHG ZKHQ LW IRXQG
    XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH     )UHQFKjVODFNRIFRXQVHOGXULQJWKHVXSSOHPHQWDOLQVWUXFWLRQ
    SULVRQHUjVFDVH                                                    WREHDVWUXFWXUDOHUURU,QVWHDGWKHDSSHOODQWVD\V)UHQFKjV
                                                                        ODFNRIFRXQVHOGXULQJWKHVXSSOHPHQWDOLQVWUXFWLRQZDVDWULDO
:LOOLDPV86DWo7KHUHIRUHZHORRNWRVHHLI             HUURUVXEMHFWWRKDUPOHVVHUURUDQDO\VLV
WKH0LFKLJDQFRXUWVKDYHXQUHDVRQDEO\DSSOLHGDJRYHUQLQJ
OHJDO SULQFLSOH LGHQWLILHG E\ WKH 6XSUHPH &RXUW ZKHQ WKH\         ,Q VXSSRUW RI KLV SRVLWLRQ WKH DSSHOODQW VD\V SUHYLRXV
DSSOLHG KDUPOHVV HUURU DQDO\VLV WR )UHQFKjV GHSULYDWLRQ RI       6XSUHPH&RXUWGHFLVLRQVLQGLFDWHWKDWDQHUURUGXULQJWULDO
FRXQVHOGXULQJWKHVXSSOHPHQWDOLQVWUXFWLRQ                          RQO\ UHTXLUHV DXWRPDWLF UHYHUVDO ZKHQ D GHIHQGDQW KDV
