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

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

RI WKH WHUP mXQUHDVRQDEOHl DQG DV WKH WHUP LV NQRZQ                            )LOH 1DPH DS

WKURXJKRXWWKHMXULVSUXGHQFHLWLVDEXQGDQWO\FOHDUWKDWWKH
0LFKLJDQ FRXUWV XQUHDVRQDEO\ DSSOLHG 6XSUHPH &RXUW
SUHFHGHQW XQGHU DQ REMHFWLYH VWDQGDUG LQ UHIXVLQJ WR DOORZ   81,7('67$7(6&28572)$33($/6
WHVWLPRQ\UHJDUGLQJ5RFNZHOOjVDOOHJHGVH[XDODEXVHRIKLV                              )257+(6,;7+&,5&8,7
VRQVLQWRHYLGHQFHEHFDXVHLQGRLQJVRWKHVWDWHGHSULYHG                               BBBBBBBBBBBBBBBBB
3HWLWLRQHURIKHU)LIWK$PHQGPHQWULJKWWRSUHVHQWDGHIHQVH
DQGHIIHFWLYHO\OHIW3HWLWLRQHUZLWKQRGHIHQVHDWDOO
  $FFRUGLQJO\,UHVSHFWIXOO\GLVVHQW                                6+$521 0$< 52&.:(//             ;
                                                                              3HWLWLRQHU$SSHOOHH      
                                                                                                        
                                                                                                          1R
                                                                                Y                      
                                                                                                         !
                                                                                                        
                                                                      s2$1 <8.,16                      
                                                                            5HVSRQGHQW$SSHOODQW 
                                                                                                       1
                                                                           $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                          IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
                                                                        1Rn$YHUQ&RKQ6HQLRU'LVWULFWsXGJH
                                                                                          $UJXHG2FWREHU
                                                                                     'HFLGHGDQG)LOHGsXO\
                                                                         %HIRUH1(/621&/$<DQG*$5:22'&LUFXLW
                                                                                            sXGJHV




                                                                         
                                                                          7KH +RQRUDEOH :LOOLDP *DUZRRG 8QLWHG 6WDWHV &LUFXLW sXGJH IRU
                                                                     WKH )LIWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ



                                                                                                          
     5RFNZHOOY<XNLQV                            1R       1R                                5RFNZHOOY<XNLQV        

                     BBBBBBBBBBBBBBBBB                                  UHDVRQDEOHOLPLWVRQGHIHQVHFRXQVHOjVLQTXLU\LQWRWKH
                                                                        SRWHQWLDOELDVRIDSURVHFXWLRQZLWQHVVWRWDNHDFFRXQWRI
                          &2816(/                                       VXFKIDFWRUVDVmKDUDVVPHQWSUHMXGLFHFRQIXVLRQRIWKH
                                                                        LVVXHVWKHZLWQHVVjVDIHW\RULQWHUURJDWLRQWKDW>ZRXOG
$5*8('  /DXUD *UDYHV 0RRG\ 2)),&( 2) 7+(                       EH@UHSHWLWLYHRURQO\PDUJLQDOO\UHOHYDQWl'HODZDUHY
$77251(<*(1(5$//DQVLQJ0LFKLJDQIRU$SSHOODQW                     9DQ$UVGDOO>86@>@WKHOLPLWDWLRQ
&UDLJ$'DO\'HWURLW0LFKLJDQIRU$SSHOOHH21%5,()              KHUHZDVEH\RQGUHDVRQ6SHFXODWLRQDVWRWKHHIIHFWRI
/DXUD *UDYHV 0RRG\ 2)),&( 2) 7+( $77251(<                        MXURUVj UDFLDO ELDVHV FDQQRW MXVWLI\ H[FOXVLRQ RI FURVV
*(1(5$/ /DQVLQJ 0LFKLJDQ IRU $SSHOODQW  &UDLJ $             H[DPLQDWLRQZLWKVXFKVWURQJSRWHQWLDOWRGHPRQVWUDWH
'DO\'HWURLW0LFKLJDQIRU$SSHOOHH                                  WKHIDOVLW\RI>WKHYLFWLPjV@WHVWLPRQ\
  1(/621sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK            ,G
*$5:22'sMRLQHG&/$<sSSGHOLYHUHGD
VHSDUDWHGLVVHQWLQJRSLQLRQ                                             ,Q WKH PDWWHU DW KDQG LW LV WUXH WKDW 3HWLWLRQHU VRXJKW WR
                                                                      LQWURGXFH HYLGHQFH QRW WR VKRZ ELDV RI D ZLWQHVV EXW WR
                     BBBBBBBBBBBBBBBBB                                GHPRQVWUDWHWKHYLDELOLW\RIKHUGHIHQVHKRZHYHULQHLWKHU
                                                                      FDVHWKHHYLGHQFHVRXJKWWREHLQWURGXFHGZDV UHOHYDQWWR
                         23,1,21                                      GHPRQVWUDWLQJWKHWUXWKRUIDOVLW\RIWHVWLPRQ\FULWLFDOWRWKH
                     BBBBBBBBBBBBBBBBB                                SHWLWLRQHUjVJXLOWRULQQRFHQVH$QGZKHUHWKHHYLGHQFHRI
                                                                      5RFNZHOOjV\HDUVRIDOOHJHGVH[XDODEXVHRIWKHER\VSURYLGHG
   '$9,'$1(/621&LUFXLWsXGJH)RUWKHVHFRQGWLPH              WKH YHU\ EDVLV IRU 3HWLWLRQHUjV mWDON WKHUDS\l VSHFXODWLRQ
0LFKLJDQSULVRQZDUGHQsRKQ<XNLQVKDVDSSHDOHGDZULWRI             DERXW KRZ WKLV HYLGHQFH ZRXOG KDYH SUHMXGLFHG WKH MXU\
KDEHDV FRUSXV JUDQWHG WR FRQYLFWHG PXUGHU FRQVSLUDWRU           FDQQRW VHUYH WR MXVWLI\ WKH H[FOXVLRQ RI WKH HYLGHQFH  6HH
6KDURQ5RFNZHOO8QGHUWKHOHJDOVWDQGDUGSUHVFULEHGE\WKH          2OGHQ  86 DW  VHH DOVR  &UDQH  86 DW 
$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWRIWKH            ILQGLQJWKDWWKHULJKWWRSUHVHQWDFRPSOHWHGHIHQVHLVILUPO\
ZULW VKRXOG QRW KDYH EHHQ LVVXHG XQOHVV 0UV 5RFNZHOOjV       URRWHGLQWKH&RQVWLWXWLRQZKHWKHUDUJXHGXQGHUWKH)LIWKRU
FRQYLFWLRQ LQ VWDWH FRXUW LQYROYHG DQ mXQUHDVRQDEOHl            6L[WK$PHQGPHQW$VDUHVXOWXQGHUDQREMHFWLYHVWDQGDUG
DSSOLFDWLRQRIIHGHUDOODZFOHDUO\HVWDEOLVKHGE\WKH8QLWHG          WKH0LFKLJDQFRXUWVXQUHDVRQDEO\DSSOLHG2OGHQLQH[FOXGLQJ
6WDWHV6XSUHPH&RXUWRUXQOHVVWKHFRQYLFWLRQZDVIODWRXW            HYLGHQFHRI5RFNZHOOjVDOOHJHGVH[XDODEXVHRIKLVVRQVDV
FRQWUDU\WRVXFKFOHDUO\HVWDEOLVKHGODZ&RQFOXGLQJWKDWWKH        EHLQJPRUHSUHMXGLFLDOWKDQSUREDWLYH
UHVXOW UHDFKHG LQ WKH VWDWH FRXUW SDVVHV PXVWHU XQGHU WKH
VWDWXWRU\ WHVW ZH VKDOO UHYHUVH WKH GHFLVLRQ LQ ZKLFK WKH     ,QOLJKWRIWKHDERYHDQDO\VLVLWLVGLIILFXOWWRFRPSUHKHQG
IHGHUDOGLVWULFWFRXUWJUDQWHGKDEHDVUHOLHI                         WKHPDMRULW\jVSRVLWLRQ$VQRWHGDWWKHRXWVHWRIWKLVGLVVHQW
                                                                      WKH 6XSUHPH &RXUW KDV JXLGHG XV WKDW ZKLOH WKH WHUP
                                 ,                                    mXQUHDVRQDEOHl LV mQR GRXEW GLIILFXOW WR GHILQHl LW LV
  $V ZH H[SODLQHG LQ RXU HDUOLHU RSLQLRQ VHH 5RFNZHOO Y    QRQHWKHOHVV mD FRPPRQ WHUP LQ WKH OHJDO ZRUOG DQG
<XNLQV)GWK&LU0UV5RFNZHOO           DFFRUGLQJO\ IHGHUDO MXGJHV DUH IDPLOLDU ZLWK LWV PHDQLQJl
DQGKHUKXVEDQG(GZDUG5RFNZHOOKDGWKUHHVRQV2QHRI             :LOOLDPV86DW$V,DPIDPLOLDUZLWKWKHPHDQLQJ
    5RFNZHOOY<XNLQV                             1R       1R                                5RFNZHOOY<XNLQV           

LQWURGXFHHYLGHQFHRIWKHUHDVRQIRUWKHER\VjKDWUHGRIWKHLU         WKH VRQV DFWLQJ ZLWK WZR IULHQGV DWWHPSWHG WR NLOO 0U
IDWKHUo5RFNZHOOjVPDQ\\HDUVRIVH[XDODEXVH:LWKRXWWKLV          5RFNZHOOE\FXWWLQJWKHEUDNHOLQHVRQKLVFDU7KHDWWHPSW
HYLGHQFH LW LV SODLQ WKDW 3HWLWLRQHUjV GHIHQVH PD\ KDYH       IDLOHG7KHER\VWKHQPDGHDQRWKHUXQVXFFHVVIXODWWHPSWRQ
DSSHDUHG PXFK OHVV FUHGLEOH LQ WKH H\HV RI WKH MXU\  7KH   0U5RFNZHOOjVOLIHWKLVWLPHE\KLWWLQJKLPRQWKHKHDGZLWK
HYLGHQFHWKHUHIRUHZDVKLJKO\UHOHYDQWWR3HWLWLRQHUjVmWDON         DEDVHEDOOEDW$OWKRXJK0UV5RFNZHOOZDVQRWSUHVHQWRQ
WKHUDS\lGHIHQVHDQGWKHUHIXVDOWRDGPLWWKHHYLGHQFHZDV            HLWKHURFFDVLRQVKHKDGSUHYLRXVO\HQJDJHGLQGLVFXVVLRQV
REMHFWLYHO\XQUHDVRQDEOHLQOLJKWRI&UDQH                            ZLWKRQHRUPRUHRIKHUVRQVDERXWNLOOLQJ0U5RFNZHOO7KH
                                                                       6WDWH RI 0LFKLJDQ WKHUHIRUH FKDUJHG 0UV 5RFNZHOO ZLWK
   2Q WKH LVVXH RI UHOHYDQF\ WKH PDMRULW\ FRQWHQGV WKDW LQ   FRQVSLUDF\WRFRPPLWPXUGHU
VWULNLQJWKHEDODQFHEHWZHHQWKHHYLGHQFHjVSUREDWLYHYDOXH
YHUVXVLWVSUHMXGLFLDOHIIHFWDVLWGLGmWKH0LFKLJDQFRXUWPD\         0UV5RFNZHOOjVGHIHQVHDVKHUODZ\HUGHVFULEHGLWDWD
RUPD\QRWKDYHHUUHGEXWZHDUHQRWSHUVXDGHGWKDWLWZDV            SUHWULDOKHDULQJZDVWKDWKHUSDUWLFLSDWLRQLQWKHGLVFXVVLRQV
DSSO\LQJ'DYLVY$ODVNDRUDQ\RWKHU8QLWHG6WDWHV6XSUHPH           DERXW NLOOLQJ 0U 5RFNZHOO ZDV QRW LQWHQGHG WR IXUWKHU DQ
&RXUWGHFLVLRQRIZKLFKZHDUHDZDUHLQDZD\WKDWFRXOG              DFWXDOPXUGHUUDWKHUDFFRUGLQJWRFRXQVHO0UV5RFNZHOOjV
IDLUO\ EH GHVFULEHG DV µREMHFWLYHO\ XQUHDVRQDEOHjl  7KH        SXUSRVHKDGEHHQWROHWWKHER\VYHQWWKHH[WUHPHDQGDELGLQJ
GLVFXVVLRQVRI'DYLVDQG&UDQHDVVHWIRUWKDERYHLOOXVWUDWH           KDWUHGWKH\KDUERUHGDJDLQVWWKHLUIDWKHUIRUKDYLQJDEXVHG
ZK\ WKH 0LFKLJDQ FRXUWV ZHUH REMHFWLYHO\ XQUHDVRQDEOH LQ        WKHP VH[XDOO\ DQG RWKHUZLVH ZKHQ WKH\ ZHUH \RXQJHU
ILQGLQJWKDWHYLGHQFH5RFNZHOOjVDOOHJHGVH[XDODEXVHRIKLV           m>0UV5RFNZHOO@IHOWLQKHUKHDUWWKDWWKHRQO\ZD\VKHFRXOG
VRQVZDVPRUHSUHMXGLFLDOWKDQSUREDWLYHRI3HWLWLRQHUjVmWDON         NHHSWKHVLWXDWLRQXQGHUFRQWUROlGHIHQVHFRXQVHOH[SODLQHG
WKHUDS\l GHIHQVHKRZHYHUWKHFDVHRI2OGHQY.HQWXFN\             mZDVWRDOORZWKHER\VWRWDONDQGIDQWDVL]HDERXW>NLOOLQJWKH
86IXUWKHULOOXVWUDWHVWKHXQUHDVRQDEOHQHVV           KDWHG0U5RFNZHOO@l)DUIURPDJUHHLQJWRDPXUGHUWKH
RIWKHVWDWHFRXUWVjUXOLQJV                                          WKHRU\ ZHQW 0UV 5RFNZHOO KRSHG WR IRUHVWDOO D PXUGHU
                                                                       WKURXJKZKDWKHUODZ\HUVHHPVWRKDYHYLHZHGDVVRPHVRUW
  ,Q 2OGHQ WKH LVVXH EHIRUH WKH &RXUW ZDV ZKHWKHU WKH        RIWDONWKHUDS\
.HQWXFN\ VWDWH FRXUWV KDG YLRODWHG WKH SHWLWLRQHUjV 6L[WK
$PHQGPHQW ULJKW WR FURVVH[DPLQDWLRQ E\ UXOLQJ WKDW                 ,Q FRQQHFWLRQ ZLWK WKLV mWKHUDS\ GHIHQVHl DV ZH
HYLGHQFH RI WKH YLFWLPjV LQWHUUDFLDO UHODWLRQVKLS ZLWK WKH      FKDUDFWHUL]HGLWLQRXUHDUOLHURSLQLRQ0UV5RFNZHOOKRSHG
SHWLWLRQHU ZDV LQDGPLVVLEOH DV EHLQJ PRUH SUHMXGLFLDO WKDQ      WRVKRZDWWULDOWKDW0U5RFNZHOOKDGLQIDFWDEXVHGKLVVRQV
SUREDWLYH  6HH 2OGHQ  86 DW   6SHFLILFDOO\ WKH   7KH SURVHFXWLRQ KRSHG WR H[FOXGH HYLGHQFH RI WKH DOOHJHG
&RXUWRSLQHG                                                          DEXVH DQG WR WKDW HQG WKH SURVHFXWLRQ ILOHG D PRWLRQ LQ
                                                                       OLPLQH7KHVWDWHWULDOFRXUWJUDQWHGWKHPRWLRQFRQFOXGLQJ
    7KH.HQWXFN\&RXUWRI$SSHDOVGLGQRWGLVSXWHDQG                 WKDWWKHHYLGHQFHLQTXHVWLRQZDVQRWmPDWHULDOlXQGHU0LFK
  LQGHHGDFNQRZOHGJHGWKHUHOHYDQFHRIWKHLPSHDFKPHQW                5XOHRI(YLG
  HYLGHQFH  1RQHWKHOHVV    WKH FRXUW KHOG WKDW
  SHWLWLRQHUjV ULJKW WR HIIHFWLYH FURVVH[DPLQDWLRQ ZDV
  RXWZHLJKHGE\WKHGDQJHUWKDWUHYHDOLQJ>WKHYLFWLPjV@                   
                                                                            $OWKRXJK   WKH SURVHFXWLRQ KDG FLWHG 5XOH  LQ DUJXPHQW WKH
  LQWHUUDFLDOUHODWLRQVKLSZRXOGSUHMXGLFHWKHMXU\DJDLQVW            UHOHYDQFH RI WKDW UXOH LQ WKLV FRQWH[W LV QRW UHDGLO\ DSSDUHQW   5XOH 
  KHU :KLOH D WULDO FRXUW PD\ RI FRXUVH LPSRVH              SURYLGHV WKDW VXEMHFW WR D VHULHV RI H[FHSWLRQV HYLGHQFH RI D SHUVRQjV
                                                                       FKDUDFWHU LV QRW DGPLVVLEOH IRU WKH SXUSRVH RI SURYLQJ WKDW WKH SHUVRQ
        5RFNZHOOY<XNLQV                               1R     1R                             5RFNZHOOY<XNLQV        

  :KHQWKHFDVHZHQWWRWULDO0UV5RFNZHOOHOHFWHGQRWWR                 7KH&RXUWZHQWRQWRILQGWKDWXQGHUWKHIDFWVRIWKHFDVH
WDNHWKHVWDQG7KHMXU\UHWXUQHGDYHUGLFWRIJXLOW\DQG0UV          EHIRUH LW mWKH .HQWXFN\ FRXUWV >KDG@ HUUHG LQ IRUHFORVLQJ
5RFNZHOOZDVVHQWHQFHGWRLPSULVRQPHQWIRUOLIH$QDSSHDO               SHWLWLRQHUjV HIIRUWV WR LQWURGXFH WHVWLPRQ\ DERXW WKH
WRWKH0LFKLJDQ&RXUWRI$SSHDOVIROORZHG                                HQYLURQPHQW LQ ZKLFK WKH SROLFH VHFXUHG KLV FRQIHVVLRQl
                                                                          &UDQH86DW7KH&RXUWRSLQHGWKDW
  7KH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHGWKHFRQYLFWLRQ
VXFFLQFWO\H[SODLQLQJLWVUDWLRQDOHDVIROORZV                             HYLGHQFHDERXWWKHPDQQHULQZKLFK D FRQIHVVLRQZDV
                                                                            REWDLQHG LV RIWHQ KLJKO\ UHOHYDQW WR LWV UHOLDELOLW\ DQG
    m:H ILQG QR DEXVH RI GLVFUHWLRQ LQ WKH WULDO FRXUWjV           FUHGLELOLW\6XFKHYLGHQFHZDVHVSHFLDOO\UHOHYDQWLQWKH
    H[FOXVLRQRIHYLGHQFHRIWKHYLFWLPjVDOOHJHGSULRUDFWVRI             UDWKHUSHFXOLDUFLUFXPVWDQFHVRIWKLVFDVH3HWLWLRQHUjV
    DEXVH DJDLQVW GHIHQGDQWjV DQG WKH YLFWLPjV FKLOGUHQ              HQWLUHGHIHQVHZDVWKDWWKHUHZDVQRSK\VLFDOHYLGHQFHWR
    3HRSOHY:DWNLQV0LFK$SS1:G                      OLQNKLPWRWKHFULPHDQGWKDWIRUDYDULHW\RIUHDVRQV
      'HIHQGDQW ZDV PHUHO\ OLPLWHG LQ WKH PHWKRG             KLVHDUOLHUDGPLVVLRQRIJXLOWZDVQRWWREHEHOLHYHG7R
    ZLWKZKLFKWRSUHVHQWKHUGHIHQVHDQGQRWGHSULYHG>RI@                 VXSSRUW WKDW GHIHQVH KH VRXJKW WR SDLQW D SLFWXUH RI D
    WKH RSSRUWXQLW\ WR SUHVHQW WKH VDPH  $OWKRXJK                   \RXQJXQHGXFDWHGER\ZKRZDVNHSWDJDLQVWKLVZLOOLQ
    PDUJLQDOO\UHOHYDQWWKHHYLGHQFHZDVSURSHUO\H[FOXGHG                 DVPDOOZLQGRZOHVVURRPIRUDSURWUDFWHGSHULRGRIWLPH
    XQGHU05(l                                                        XQWLOKHFRQIHVVHGWRHYHU\XQVROYHGFULPHLQWKHFRXQW\
                                                                            LQFOXGLQJ WKH RQH IRU ZKLFK KH QRZ VWDQGV FRQYLFWHG
0UV5RFNZHOODSSOLHGWRWKH0LFKLJDQ6XSUHPH&RXUWIRU                     :HGRQRWRIFRXUVHSDVVRQWKHVWUHQJWKRUPHULWVRI
OHDYHWRDSSHDOWKHDIILUPDQFHRIKHUFRQYLFWLRQEXWWKDWFRXUW            WKDW GHIHQVH  :H GR KRZHYHU WKLQN LW SODLQ WKDW
GHQLHGIXUWKHUUHYLHZ                                                      LQWURGXFLQJHYLGHQFHRIWKHSK\VLFDOFLUFXPVWDQFHVWKDW
                                                                            \LHOGHGWKHFRQIHVVLRQZDVDOOEXWLQGLVSHQVDEOHWRDQ\
   2Q0DUFK0UV5RFNZHOOFRPPHQFHGKHUKDEHDV                    FKDQFHRILWVVXFFHHGLQJ
FRUSXV DFWLRQ LQ WKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH
(DVWHUQ'LVWULFWRI0LFKLJDQ7KHLQLWLDOSOHDGLQJUDLVHGWZR            ,G
LVVXHVLQVXIILFLHQF\RIWKHHYLGHQFHDQGLPSURSHUH[FOXVLRQ
RI WKH HYLGHQFH RI VH[XDO DEXVH ERWK RI ZKLFK KDG EHHQ           /LNHZLVH LQ WKH PDWWHU DW KDQG HYLGHQFH RI WKH
H[KDXVWHGLQWKHVWDWHFRXUWV7KHGLVWULFWFRXUWVXEVHTXHQWO\           FLUFXPVWDQFHVWKDWFDXVHG3HWLWLRQHUWRHQJDJHLQWKLVmWDON
JUDQWHG0UV5RFNZHOOOHDYHWRDPHQGKHUSHWLWLRQWRLQFOXGH              WKHUDS\l ZDV mDOO EXW LQGLVSHQVDEOH WR DQ\ FKDQFH RI >KHU
DQ XQH[KDXVWHG FODLP  )ROORZLQJ D KHDULQJ DW ZKLFK               GHIHQVH@VXFFHHGLQJl6HH&UDQH86DW,QGHHG
DUJXPHQWV ZHUH SUHVHQWHG RQ WKH PHULWV WKH GLVWULFW FRXUW        3HWLWLRQHUjV HQWLUH GHIHQVH ZDV WKDW VKH SDUWLFLSDWHG LQ KHU
                                                                          VRQVj GLVFXVVLRQV DERXW NLOOLQJ 5RFNZHOO DV D PHDQV RI
                                                                          DOORZLQJWKHER\VWRYHQWWKHLUDQJHUIRU5RFNZHOO7KHVH
DFWHG LQ FRQIRUPLW\ WKHUHZLWK RQ D SDUWLFXODU RFFDVLRQ
                                                                          GLVFXVVLRQV WKH GHIHQVH JRHV QHYHU DPRXQWHG WR DQ
                                                                          DJUHHPHQW WR NLOO IRU SXUSRVHV RI VHFXULQJ D FRQVSLUDF\
     
      5XOH  o ZKLFK KDG DOVR EHHQ FLWHG LQ DUJXPHQW EHIRUH WKH VWDWH
                                                                          FRQYLFWLRQEXWZHUH3HWLWLRQHUjVZD\RIFRPIRUWLQJKHUVRQV
WULDO FRXUW o SURYLGHV WKDW UHOHYDQW HYLGHQFH PD\ EH H[FOXGHG LI LWV
                                                                          DQGSUHYHQWLQJQRWFDXVLQJWKHDOUHDG\YRODWLOHVLWXDWLRQWR
SUREDWLYH YDOXH LV VXEVWDQWLDOO\ RXWZHLJKHG E\ WKH GDQJHU RI XQIDLU       HVFDODWH  7R VXSSRUW WKLV GHIHQVH 3HWLWLRQHU VRXJKW WR
SUHMXGLFH
    5RFNZHOOY<XNLQV                             1R       1R                             5RFNZHOOY<XNLQV         

RSSRVHGWRKHOSLQJLW:LWKRXWNQRZLQJWKHUHDVRQEHKLQG              JUDQWHG WKH ZULW RQ WKH JURXQG WKDW WKH VWDWH WULDO FRXUWjV
WKHER\VjKDWUHGRI5RFNZHOOWKHMXU\PD\DOVRKDYHEHOLHYHG          GHFLVLRQ WR H[FOXGH HYLGHQFH RI WKH DOOHJHG VH[XDO DEXVH
WKDWWKHER\VKDWHGKLPDW3HWLWLRQHUjVEHKHVWWKHUHE\DGGLQJ         FOHDUO\ YLRODWHG 0UV 5RFNZHOOjV FRQVWLWXWLRQDO ULJKW WR
FUHGHQFHWRWKHSURVHFXWLRQjVFODLPWKDW3HWLWLRQHUIRUPHGDQ          SUHVHQWDGHIHQVHoDQGm>Q@RUHDVRQDEOHMXULVWFRXOGFRQFOXGH
DJUHHPHQW ZLWK KHU VRQV WR NLOO 5RFNZHOO  6LPSO\ SXW        RWKHUZLVHl
ZLWKRXWWKHHYLGHQFHDWLVVXHGHIHQVHFRXQVHOZDVXQDEOHWR
IXOO\GHIHQG3HWLWLRQHU6HH'DYLV86DWILQGLQJ            7KHVRXQGQHVVRIWKLVSURSRVLWLRQZDVQRWGHFLGHGLQWKH
WKDW ZLWKRXW HYLGHQFH RI ELDV RQ WKH SDUW RI WKH DFFXVHU    LQLWLDODSSHDOWRRXUFRXUW7KHSDQHOWKDWKHDUGWKHDSSHDO
GHIHQVHFRXQVHOZDVXQDEOHWRIXOO\GHIHQGWKHSHWLWLRQHU,Q        YDFDWHG WKH MXGJPHQW RQ WKH JURXQG WKDW WKH GLVWULFW FRXUW
OLJKW RI WKLV WKH VWDWH FRXUWV XQUHDVRQDEO\ DSSOLHG WKH       VKRXOGQRWKDYHUHYLHZHGDmPL[HGlSHWLWLRQFRQWDLQLQJDQ
SULQFLSOHV EHKLQG 'DYLV WR WKH IDFWV RI WKLV FDVH XQGHU DQ   XQH[KDXVWHGFODLPLQDGGLWLRQWRWKHH[KDXVWHGFODLPV7KH
REMHFWLYHVWDQGDUG                                                    FDVHZDVUHPDQGHGZLWKDVXJJHVWLRQWKDWWKHGLVWULFWFRXUW
                                                                       FRXOG UHHQWHU LWV RULJLQDO GHFLVLRQ DIWHU DOORZLQJ 0UV
   &UDQHY.HQWXFN\SURYLGHVIXUWKHUJURXQGVIRUFRQFOXGLQJ          5RFNZHOOWRGLVPLVVKHUXQH[KDXVWHGFODLP6HH5RFNZHOOY
WKDW WKH VWDWH FRXUWV XQUHDVRQDEO\ DSSOLHG 6XSUHPH &RXUW        <XNLQV)GDW
SUHFHGHQW LQ H[FOXGLQJ WHVWLPRQ\ RI 5RFNZHOOjV DOOHJHG
VH[XDODEXVHRIKLVVRQV,Q&UDQHWKH&RXUWKHOGWKDWWKH             2QUHPDQGWKLVVXJJHVWLRQZDVDFFHSWHG0UV5RFNZHOO
H[FOXVLRQ RI WHVWLPRQ\ UHJDUGLQJ WKH FLUFXPVWDQFHV XQGHU         PRYHGIRUGLVPLVVDORIKHUXQH[KDXVWHGFODLPDQGUHHQWU\RI
ZKLFKKLVFRQIHVVLRQZDVREWDLQHGGHSULYHGWKHSHWLWLRQHURI           WKH KDEHDV MXGJPHQW DQG WKH GLVWULFW FRXUW JUDQWHG WKH
WKLVIXQGDPHQWDOFRQVWLWXWLRQDOULJKWoZKHWKHUXQGHUWKH'XH          PRWLRQ7KHZDUGHQKDVDJDLQDSSHDOHGWRRXUFRXUWDQGZH
3URFHVV&ODXVHRIWKH)RXUWHHQWK$PHQGPHQWRUXQGHUWKH                DUHQRZLQDSRVLWLRQWRUHDFKWKHPHULWVRIWKHFDVH
&RPSXOVRU\3URFHVVRU&RQIURQWDWLRQ&ODXVHVRIWKH6L[WK
$PHQGPHQWoWRSUHVHQWDGHIHQVH6HH86DW                                              ,,
,QGRLQJVRWKH&RXUWQRWHGWKDWLWZDVmEUHDN>LQJ@QRQHZ
JURXQG LQ REVHUYLQJ WKDW DQ HVVHQWLDO FRPSRQHQW RI                $V DPHQGHG E\ WKH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK
SURFHGXUDOIDLUQHVVLVDQRSSRUWXQLW\WREHKHDUGl6HHLGDW        3HQDOW\ $FW RI  $('3$ 3XE / 1R  
FLWLQJ,QUH2OLYHU86*UDQQLV            6WDW   VXEVHFWLRQ G RI  86&  
Y2UGHDQ867RWKDWHQGWKH&RXUW          SURYLGHVLQUHOHYDQWSDUWDVIROORZV
IRXQG WKDW WKLV mRSSRUWXQLW\ ZRXOG EH DQ HPSW\ RQH LI WKH
6WDWHZHUHSHUPLWWHGWRH[FOXGHFRPSHWHQWUHOLDEOHHYLGHQFH             mG$QDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVRQEHKDOI
EHDULQJRQWKHFUHGLELOLW\RIDFRQIHVVLRQZKHQVXFKHYLGHQFH            RIDSHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRID6WDWH
LVFHQWUDOWRWKHGHIHQGDQWjVFODLPRILQQRFHQFHl,G$VD            FRXUWVKDOOQRWEHJUDQWHGZLWKUHVSHFWWRDQ\FODLPWKDW
UHVXOWWKH&RXUWFRQFOXGHGWKDWm>L@QWKHDEVHQFHRIDQ\YDOLG          ZDVDGMXGLFDWHGRQWKHPHULWVLQ6WDWHFRXUWSURFHHGLQJV
VWDWH MXVWLILFDWLRQ H[FOXVLRQ RI WKLV NLQG RI H[FXOSDWRU\        XQOHVVWKHDGMXGLFDWLRQRIWKHFODLPo
HYLGHQFHGHSULYHVDGHIHQGDQWRIWKHEDVLFULJKWWRKDYHWKH              UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU
SURVHFXWRUjV FDVH HQFRXQWHU DQG µVXUYLYH WKH FUXFLEOH RI          LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\
PHDQLQJIXO DGYHUVDULDO WHVWLQJjl  ,G DW  TXRWLQJ         HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH
8QLWHG6WDWHVY&URQLF86                      &RXUWRIWKH8QLWHG6WDWHVl
        5RFNZHOOY<XNLQV                                 1R       1R                              5RFNZHOOY<XNLQV        

7KLVYHUVLRQRIWKHVWDWXWHDSSOLHVWRKDEHDVDSSOLFDWLRQVILOHG               PDNH D UHFRUG IURP ZKLFK WR DUJXH ZK\ *UHHQ PLJKW
DV0UV5RFNZHOOjVZDVDIWHU$SULOWKHHIIHFWLYH                     KDYH EHHQ ELDVHG RU RWKHUZLVH ODFNHG WKDW GHJUHH RI
GDWHRI$('3$6HH/LQGKY0XUSK\86                       LPSDUWLDOLW\H[SHFWHGRIDZLWQHVVDWWULDO2QWKHEDVLV
                                                                                RIWKHOLPLWHGFURVVH[DPLQDWLRQWKDWZDVSHUPLWWHGWKH
  7KHVWDWXWHPHDQVZKDWLWVD\V6HH:LOOLDPVY7D\ORU                  MXU\PLJKWZHOOKDYHWKRXJKWWKDWGHIHQVHFRXQVHOZDV
86:KDWWKHVWDWXWHVD\VWRUHSHDWLV                  HQJDJHGLQDVSHFXODWLYHDQGEDVHOHVVOLQHRIDWWDFNRQ
WKDWKDEHDVUHOLHIPD\QRWEHJUDQWHGXQOHVVWKHVWDWHFRXUWjV                  WKHFUHGLELOLW\RIDQDSSDUHQWO\EODPHOHVVZLWQHVVRUDV
GHFLVLRQZDVHLWKHUmFRQWUDU\WRFOHDUO\HVWDEOLVKHGIHGHUDO              WKHSURVHFXWRUjVREMHFWLRQSXWLWDµUHKDVKjRISULRUFURVV
ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH &RXUW RI WKH 8QLWHG                 H[DPLQDWLRQ2QWKHVHIDFWVLWVHHPVFOHDUWRXVWKDWWR
6WDWHVl  RU mLQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI                PDNHDQ\VXFKLQTXLU\HIIHFWLYHGHIHQVHFRXQVHOVKRXOG
>VXFK@ODZl                                                                    KDYHEHHQSHUPLWWHGWRH[SRVHWRWKHMXU\WKHIDFWVIURP
                                                                                ZKLFK MXURUV DV WKH VROH WULHUV RI IDFW DQG FUHGLELOLW\
  0UV5RFNZHOOGRHVQRWFRQWHQGWKDWWKHDIILUPDQFHRIKHU                     FRXOG DSSURSULDWHO\ GUDZ LQIHUHQFHV UHODWLQJ WR WKH
FRQYLFWLRQ E\ WKH VWDWH FRXUW RI DSSHDOV ZDV mFRQWUDU\ WRl             UHOLDELOLW\RIWKHZLWQHVV3HWLWLRQHUZDVWKXVGHQLHGWKH
FOHDU6XSUHPH&RXUWFDVHODZ6KHGRHVFRQWHQGKRZHYHU                        ULJKW RI HIIHFWLYH FURVVH[DPLQDWLRQ ZKLFK mZRXOG EH
WKDWLWLQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQRIVXFKODZRQ                    FRQVWLWXWLRQDOHUURURIWKHILUVWPDJQLWXGHl
ZKLFKDFFRXQWVKHFODLPVHQWLWOHPHQWWRIHGHUDOKDEHDVUHOLHI
                                                                              ,GDWFLWDWLRQVDQGIRRWQRWHRPLWWHG
  )RUWKLVFRQWHQWLRQWREHVXVWDLQHG0UV5RFNZHOOQHHGVWR
GR PRUH WKDQ SHUVXDGH XV WKDW WKH 0LFKLJDQ MXGLFLDU\jV                  +HUH OLNHZLVH WKH mDFFXUDF\ DQG WUXWKIXOQHVVl RI
DSSOLFDWLRQ RI IHGHUDO ODZ ZDV LQFRUUHFW  $V sXVWLFH                 3HWLWLRQHUjVWHVWLPRQ\ZDVFULWLFDOWRWKHSURVHFXWLRQjVFDVH
2j&RQQRUVDLGVSHDNLQJIRUWKH&RXUWLQ:LOOLDPV                            DJDLQVWKHUDQGEHFDXVHGHIHQVHFRXQVHOZDVOLPLWHGLQKLV
                                                                              H[DPLQDWLRQ RI 3HWLWLRQHU DV WR KHU mWDON WKHUDS\l GHIHQVH
    m,Q  G &RQJUHVV VSHFLILFDOO\ XVHG WKH ZRUG              mWKHMXU\PLJKWZHOOKDYHWKRXJKWWKDWGHIHQVHFRXQVHOZDV
    µXQUHDVRQDEOHj DQG QRW D WHUP OLNH µHUURQHRXVj RU                 HQJDJHGLQDVSHFXODWLYHlWKHRU\RIGHIHQVH6HH'DYLV
    µLQFRUUHFWj  8QGHU  GjV µXQUHDVRQDEOH                     86DW+RZHYHUKDGGHIHQVHFRXQVHOEHHQDEOHWR
    DSSOLFDWLRQjFODXVHWKHQDIHGHUDOKDEHDVFRXUWPD\QRW                 H[DPLQH3HWLWLRQHUUHJDUGLQJWKHEDVLVIRUKHUmWDONWKHUDS\l
    LVVXHWKHZULWVLPSO\EHFDXVHWKDWFRXUWFRQFOXGHVLQLWV                 WKHRU\WKHMXU\PLJKWZHOOKDYHWKRXJKWRWKHUZLVH,QGHHG
    LQGHSHQGHQW MXGJPHQW WKDW WKH UHOHYDQW VWDWHFRXUW                   ZLWKRXWPRUH3HWLWLRQHUjVmWDONWKHUDS\lDVDEDVLVIRUWKH
    GHFLVLRQ DSSOLHG FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ                     ER\VWRYHQWWKHLUKDWUHGIRUWKHLUIDWKHUPD\YHU\ZHOOKDYH
    HUURQHRXVO\RULQFRUUHFWO\5DWKHUWKDWDSSOLFDWLRQPXVW                ZRUNHG DJDLQVW 3HWLWLRQHU LQDVPXFK DV WKH MXU\ PD\ KDYH
                                                                              EHOLHYHGWKDW3HWLWLRQHUjVVRQVKDWHGWKHLUIDWKHUEHFDXVHKH
                                                                              GHPDQGHGWKDWWKH\H[FHOLQVFKRRORUVWULFWO\SUHYHQWHGWKHP
                                                                              IURPXVLQJGUXJVRUDOFRKRO,QRWKHUZRUGVZLWKRXWPRUH
                                                                             WKHMXU\PD\KDYHWKRXJKWWKHVRQVKDWHG5RFNZHOOEHFDXVH
                                                                              KHZDVEHLQJDJRRGDOEHLWSHUKDSVVWULFWIDWKHUVXFKWKDW
      7KH FRQGLWLRQ RI WKLV mFRQWUDU\ WRl FODXVH ZRXOG EH PHW LI mWKH VWDWH
FRXUW DUULYH>G@ DW D FRQFOXVLRQ RSSRVLWH WR WKDW UHDFKHG E\ >WKH 86
6XSUHPH@ &RXUW RQ D TXHVWLRQ RI ODZ RU LI WKH VWDWH FRXUW GHFLGH>G@ D FDVH    3HWLWLRQHUjVDSSURYDORIWKHER\VVSHDNLQJRINLOOLQJ5RFNZHOO
                                                                              DV D IRUP RI mWDON WKHUDS\l PD\ KDYH KXUW KHU GHIHQVH DV
                            :LOOLDPV
GLIIHUHQWO\ WKDQ >WKH 86 6XSUHPH &RXUW KDV@ RQ D VHW RI PDWHULDOO\
LQGLVWLQJXLVKDEOH IDFWVl                86 DW 
    5RFNZHOOY<XNLQV                            1R      1R                            5RFNZHOOY<XNLQV        

$PHQGPHQWRULQWKH&RPSXOVRU\3URFHVVRU&RQIURQWDWLRQ               DOVR EH XQUHDVRQDEOHl  :LOOLDPV  86 DW 
FODXVHVRIWKH6L[WK$PHQGPHQWWKH&RQVWLWXWLRQJXDUDQWHHV            HPSKDVLVVXSSOLHG
FULPLQDO GHIHQGDQWV D PHDQLQJIXO RSSRUWXQLW\ WR SUHVHQW D
FRPSOHWHGHIHQVHlFLWDWLRQVDQGLQWHUQDOTXRWDWLRQPDUNV          m>$@Q XQUHDVRQDEOH DSSOLFDWLRQ RI IHGHUDO ODZ LV GLIIHUHQW
RPLWWHGVHHDOVR6WULFNODQGY:DVKLQJWRQ86           IURPDQLQFRUUHFWRUHUURQHRXVDSSOLFDWLRQRIIHGHUDOODZl
  m7KH &RQVWLWXWLRQ JXDUDQWHHV D IDLU WULDO      ,G DW  HPSKDVLV LQ RULJLQDO  $QG LQ PDNLQJ WKH
WKURXJK WKH 'XH 3URFHVV &ODXVHV EXW LW GHILQHV WKH EDVLF   mXQUHDVRQDEOHDSSOLFDWLRQlLQTXLU\ZHmVKRXOGDVNZKHWKHU
HOHPHQWVRIDIDLUWULDOODUJHO\WKURXJKWKHVHYHUDOSURYLVLRQV      WKHVWDWHFRXUWjVDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHGIHGHUDOODZ
RIWKH6L[WK$PHQGPHQWl$FFRUGLQJO\WKHIDFWWKDW        ZDVµREMHFWLYHO\jXQUHDVRQDEOHl,GDW
'DYLVLQYROYHGWKH6L[WK$PHQGPHQWGRHVQRWKLQJWRFKDQJH
LWVDSSOLFDELOLW\WRWKHPDWWHUDWKDQGLQDVPXFKDVWKHORJLF          ,Q0UV5RFNZHOOjVFDVHDVZHKDYHVHHQWKH0LFKLJDQ
DQGUHDVRQLQJIRUFRQFOXGLQJWKDW3HWLWLRQHUZDVGHQLHGKHU          &RXUWRI$SSHDOVFRQFOXGHGWKDWWKHSUREDWLYHYDOXHRIWKH
GXHSURFHVVULJKWWRSUHVHQWDGHIHQVHLVWKHVDPHDVWKDWXVHG      HYLGHQFHRI(GZDUG5RFNZHOOjVDOOHJHGDEXVHRIKLVVRQVZDV
WRILQGWKHSHWLWLRQHUjVULJKWWRFRQIURQWDWLRQZDVGHQLHGLQ        VXEVWDQWLDOO\ RXWZHLJKHG E\ WKH GDQJHU RI XQIDLU SUHMXGLFH
'DYLV                                                              WKDW PLJKW HQVXH ZHUH WKH HYLGHQFH WR EH DGPLWWHG  7KLV
                                                                     FRQFOXVLRQ PD\ RU PD\ QRW KDYH EHHQ HUURQHRXV EXW ZH
  7RLOOXVWUDWHDOWKRXJKWKHSHWLWLRQHULQ'DYLVSUHPLVHGKLV       FDQQRW VD\ WKDW LW UHSUHVHQWHG DQ REMHFWLYHO\ XQUHDVRQDEOH
FODLP RQ D YLRODWLRQ RI KLV 6L[WK $PHQGPHQW ULJKW WR        DSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW
FRQIURQWDWLRQ WKH &RXUW IRXQG WKDW WKH ULJKW ZDV YLRODWHG
EHFDXVH WKH SHWLWLRQHU KDG EHHQ SUHYHQWHG IURP IXOO\            $ 6XSUHPH &RXUW GHFLVLRQ WKDW WKH GLVWULFW FRXUW IRXQG
SUHVHQWLQJKLVGHIHQVHE\WKHOLPLWHGFURVVH[DPLQDWLRQRID         mSDUWLFXODUO\ LQVWUXFWLYHl LV 'DYLV Y $ODVND  86 
NH\ZLWQHVV6HH'DYLV86DW6SHFLILFDOO\WKH      7KHTXHVWLRQSUHVHQWHGWKHUHZDVZKHWKHUXQGHUWKH
&RXUWRSLQHG                                                        &RQIURQWDWLRQ&ODXVHRIWKH6L[WK$PHQGPHQWWKHGHIHQGDQW
                                                                     LQ D EXUJODU\ FDVH o SHWLWLRQHU sRVKDZD\ 'DYLV o KDG D
  7KH DFFXUDF\ DQG WUXWKIXOQHVV RI *UHHQjV >WKH NH\           FRQVWLWXWLRQDOULJKWWRFURVVH[DPLQHDFUXFLDOZLWQHVVIRUWKH
  ZLWQHVVIRUWKHSURVHFXWLRQ@WHVWLPRQ\ZHUHNH\HOHPHQWV           SURVHFXWLRQDERXWDMXYHQLOHEXUJODU\DGMXGLFDWLRQIRUZKLFK
  LQWKH6WDWHjVFDVHDJDLQVWSHWLWLRQHU7KHFODLPRIELDV         WKHZLWQHVVZDVRQSUREDWLRQ7KHSXUSRVHRIWKHSURSRVHG
  ZKLFKWKHGHIHQVHVRXJKWWRGHYHORSZDVDGPLVVLEOHWR              FURVVH[DPLQDWLRQ ZDV WR WU\ WR FRQYLQFH WKH MXU\ WKDW WKH
  DIIRUGDEDVLVIRUDQLQIHUHQFHRIXQGXHSUHVVXUHEHFDXVH          ZLWQHVVKDGIDOVHO\ILQJHUHGsRVKDZD\'DYLVRXWRIIHDUWKDW
  RI*UHHQjVYXOQHUDEOHVWDWXVDVDSUREDWLRQHUDVZHOODV          RWKHUZLVH WKH ZLWQHVV KLPVHOI ZRXOG EH D VXVSHFW DQG KLV
  *UHHQjVSRVVLEOHFRQFHUQWKDWKHPLJKWEHDVXVSHFWLQ             SUREDWLRQZRXOGEHUHYRNHG7KH6XSUHPH&RXUWKHOGWKDW
  WKHLQYHVWLJDWLRQ                                                'DYLVKDGDFRQVWLWXWLRQDOULJKWWRFRQIURQWWKHZLWQHVVZLWK
                                                                     TXHVWLRQVDORQJWKHVHOLQHV
    :H FDQQRW DFFHSW WKH $ODVND 6XSUHPH &RXUWjV
  FRQFOXVLRQWKDWWKHFURVVH[DPLQDWLRQWKDWZDVSHUPLWWHG             m&URVVH[DPLQDWLRQ LV WKH SULQFLSDO PHDQV E\ ZKLFK WKH
  GHIHQVHFRXQVHOZDVDGHTXDWHWRGHYHORSWKHLVVXHRIELDV          EHOLHYDELOLW\RIDZLWQHVVDQGWKHWUXWKRIKLVWHVWLPRQ\DUH
  SURSHUO\WRWKHMXU\:KLOHFRXQVHOZDVSHUPLWWHGWRDVN          WHVWHGl DV WKH 'DYLV &RXUW H[SODLQHG  $JDLQVW WKLV
  *UHHQ ZKHWKHU KH ZDV ELDVHG FRXQVHO ZDV XQDEOH WR         EDFNJURXQGWKH&RXUWFRQFOXGHGWKDWmWKHMXURUVZHUHHQWLWOHG
                                                                     WRKDYHWKHEHQHILWRIWKHGHIHQVHWKHRU\EHIRUHWKHPVRWKDW
     5RFNZHOOY<XNLQV                            1R      1R                             5RFNZHOOY<XNLQV       

WKH\FRXOGPDNHDQLQIRUPHGMXGJPHQWDVWRWKHZHLJKWWR             OLPLWLQJWKHMXU\jVEDVLVIRUMXGJLQJWKHFUHGLELOLW\RIWKHNH\
SODFHRQ>WKHMXYHQLOHjV@WHVWLPRQ\ZKLFKSURYLGHGµDFUXFLDO        ZLWQHVVLVWKHVDPH
OLQNLQWKHSURRIRISHWLWLRQHUjVDFWjl,GDWDQG
FLWDWLRQRPLWWHG                                                     7KH PDMRULW\ FRQWHQGV WKDW WKH UHVXOW LV QRW WKH VDPH
                                                                     LQDVPXFK DV HYLGHQFH RI 5RFNZHOOjV DOOHJHG VH[XDO DEXVH
  ,Q WKH FDVH DW EDU E\ FRQWUDVW WKH HYLGHQFH WKDW 0U   DFFRUGLQJWRWKHPDMRULW\mZDVEHLQJSURIIHUHGWRQRWVKRZ
5RFNZHOO KDG DEXVHG KLV VRQV ZDV EHLQJ SURIIHUHG WR QRW     ELDVRQWKHSDUWRIDFUXFLDOZLWQHVVDJDLQVW>3HWLWLRQHU@EXW
VKRZ ELDV RQ WKH SDUW RI D FUXFLDO ZLWQHVV DJDLQVW 0UV    WRVKRUHXS>3HWLWLRQHUjV@RZQSURMHFWHGWHVWLPRQ\DERXWKHU
5RFNZHOO EXW WR VKRUH XS 0UV 5RFNZHOOjV RZQ SURMHFWHG      µWKHUDS\jl  7KH VKRUWVLJKWHGQHVV RI WKLV FRQWHQWLRQ LV WKDW
WHVWLPRQ\ DERXW KHU mWKHUDS\l  7KH 0LFKLJDQ &RXUW RI        3HWLWLRQHUjVWHVWLPRQ\DVWRWKHUHDVRQIRUKHUmWDONWKHUDS\l
$SSHDOV UHFRJQL]HG WKDW WKH VH[XDO DEXVH HYLGHQFH ZDV         ZDVWKDWRIDFUXFLDOZLWQHVVDOEHLWDZLWQHVVIRUWKHGHIHQVH
PDUJLQDOO\UHOHYDQWEXWWKHFRXUWFRQFOXGHGWKDWLWVSUREDWLYH      DQGQRWWKHSURVHFXWLRQZKRVHWHVWLPRQ\ZHQWGLUHFWO\WRWKH
YDOXHZDVVXEVWDQWLDOO\RXWZHLJKHGE\WKHGDQJHURIXQIDLU           VWDWHjV FODLP DJDLQVW KHU  &RQWUDU\ WR WKH PDMRULW\jV
SUHMXGLFH o WKH GDQJHU WKDW WKH MXU\ ZRXOG EH WHPSWHG WR   UHDVRQLQJLWLVRIQRPRPHQWZKHWKHUWKHH[FOXGHGHYLGHQFH
DFTXLW0UV5RFNZHOOQRWEHFDXVHRIDQ\VHQVHWKDWVKHZDV           ZHQW WR GHWHUPLQLQJ WKH FUHGLELOLW\ RI WHVWLPRQ\ SURIIHUHG
LQQRFHQWRIFRQVSLULQJZLWKKHUVRQVWRNLOO0U5RFNZHOOEXW       DJDLQVWWKHSHWLWLRQHUDVZDVWKHFDVHLQ'DYLVRUZKHWKHU
EHFDXVHRIDVHQVHWKDWNLOOLQJZRXOGEHWRRJRRGIRUVXFKD         WKHHYLGHQFHZHQWWRWKHFUHGLELOLW\RIWHVWLPRQ\SURIIHUHGLQ
PDQ7KHFRXUWZDVFRQFHUQHGLQRWKHUZRUGVWKDWLQVWHDG          IDYRU RI WKH SHWLWLRQHU DV LV WKH FDVH KHUH 6HH HJ
RIXVLQJUHOHYDQWHYLGHQFHWRUHDFKDSURSHUUHVXOWXQGHUWKH        :DVKLQJWRQ Y 7H[DV  86    msXVW DV DQ
ZULWWHQ ODZ WKH MXU\ PLJKW XVH WKH HYLGHQFH WR UHDFK DQ   DFFXVHGKDVWKHULJKWWRFRQIURQWWKHSURVHFXWLRQjVZLWQHVVHV
LPSURSHU UHVXOW XQGHU WKH XQZULWWHQ ODZ  ,Q VWULNLQJ WKH   IRUWKHSXUSRVHRIFKDOOHQJLQJWKHLUWHVWLPRQ\KHKDVWKHULJKW
EDODQFHDVLWGLGWKH0LFKLJDQFRXUW PD\ RUPD\QRWKDYH           WRSUHVHQWKLVRZQZLWQHVVHVWRHVWDEOLVKDGHIHQVH7KLVULJKW
HUUHGEXWZHDUHQRWSHUVXDGHGWKDWLWZDVDSSO\LQJ'DYLVY        LVDIXQGDPHQWDOHOHPHQWRIGXHSURFHVVRIODZl,QHDFK
$ODVNDRUDQ\RWKHU8QLWHG6WDWHV6XSUHPH&RXUWGHFLVLRQRI         LQVWDQFHWKHWHVWLPRQ\ZHQWWRGHWHUPLQLQJWKHSHWLWLRQHUjV
ZKLFKZHDUHDZDUHLQDZD\WKDWFRXOGIDLUO\EHGHVFULEHGDV       JXLOWDQGWKHUHIRUHLQHDFKLQVWDQFHmWKHMXURUVZHUHHQWLWOHG
mREMHFWLYHO\XQUHDVRQDEOHl                                          WRKDYHWKHEHQHILWRIWKHGHIHQVHWKHRU\EHIRUHWKHPVRWKDW
                                                                     WKH\FRXOGPDNHDQLQIRUPHGMXGJPHQWDVWRWKHZHLJKWWR
   7KHFRQVWLWXWLRQDOULJKWDVVHUWHGE\0UV5RFNZHOOLVQRW         SODFHRQ>WKHZLWQHVVj@WHVWLPRQ\ZKLFKSURYLGHGDFUXFLDO
WKH6L[WK$PHQGPHQWULJKWRIFRQIURQWDWLRQRIFRXUVHEXWD         OLQNLQWKHSURRIRISHWLWLRQHUjVDFWl'DYLV86DW
)LIWK$PHQGPHQWGXHSURFHVVULJKWoWKHULJKWWRSUHVHQWD          LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG
GHIHQVH  $V WKH GLVWULFW FRXUW SURSHUO\ DFNQRZOHGJHG WKH
ULJKWWRSUHVHQWDGHIHQVHLVQRWDQXQOLPLWHGULJKWWRSUHVHQW         7KHPDMRULW\DOVRDWWHPSWVWRGLVWLQJXLVK'DYLVE\QRWLQJ
HYLGHQFHZLWKRXWUHJDUGWRUHDVRQDEOHHYLGHQWLDU\UHVWULFWLRQV      WKDW'DYLVLQYROYHGWKHSHWLWLRQHUjV6L[WK$PHQGPHQWULJKW
2QWKHFRQWUDU\WKHFRXUWSRLQWHGRXWTXRWLQJIURP8QLWHG          WRFRQIURQWDWLRQZKLOHWKHFDVHDWKDQGLQYROYHV3HWLWLRQHUjV
6WDWHV Y 6FKHIIHU  86    WKH 6XSUHPH   )LIWK$PHQGPHQWULJKWWRSUHVHQWDGHIHQVH7KLVGLVWLQFWLRQ
&RXUWKDVH[SOLFLWO\UHFRJQL]HGWKDWm>D@GHIHQGDQWjVLQWHUHVW       KDVQREDVLVLQWKHMXULVSUXGHQFHRIWKH6XSUHPH&RXUW6HH
LQ SUHVHQWLQJ    HYLGHQFH PD\ >KDYH WR@ ERZ WR          &UDQH Y .HQWXFN\  86    m:KHWKHU
DFFRPPRGDWHRWKHUOHJLWLPDWHLQWHUHVWVLQWKHFULPLQDOWULDO         URRWHGGLUHFWO\LQWKH'XH3URFHVV&ODXVHRIWKH)RXUWHHQWK
    5RFNZHOOY<XNLQV                              1R       1R                             5RFNZHOOY<XNLQV         

WR VKRZ RWKHUZLVH IDOOV VKRUW  )RU H[DPSOH WKH PDMRULW\      SURFHVVl,WZDVQRWREMHFWLYHO\XQUHDVRQDEOHLQRXUYLHZ
UHMHFWVWKHGLVWULFWFRXUWjVUHOLDQFHRQ'DYLVY$ODVND           IRU WKH 0LFKLJDQ FRXUW WR FRQFOXGH WKDW mRWKHU OHJLWLPDWH
86   WR VKRZ WKDW WKH 0LFKLJDQ FRXUWV                LQWHUHVWV LQ WKH FULPLQDO WULDO SURFHVVl RXWZHLJKHG 0UV
XQUHDVRQDEO\DSSOLHG6XSUHPH&RXUWSUHFHGHQWWRWKHIDFWVRI            5RFNZHOOjV LQWHUHVW LQ EXWWUHVVLQJ KHU SURMHFWHG WHVWLPRQ\
3HWLWLRQHUjVFDVH+RZHYHUWKHPDMRULW\jVUHDVRQLQJVLPSO\             ZLWKHYLGHQFHRIKHUKXVEDQGjVGHVSLFDEOHEHKDYLRU
DPRXQWVWRDGLVWLQFWLRQZLWKRXWDGLIIHUHQFHLQDVPXFKDVLQ
'DYLVDVZHOODVLQWKHPDWWHUDWKDQGWKHGHIHQGDQWZDVQRW             :KDW LV FRQWUROOLQJ KHUH LV WKH IDPLOLDU FRQFHSW WKDW WKH
DOORZHG WR SUHVHQW DOO HYLGHQFH WR VKRZ WKH mDFFXUDF\ DQG      GHIHQGDQW LQ D FULPLQDO FDVH mGRHV QRW KDYH DQ XQIHWWHUHG
WUXWKIXOQHVVlDVWRWKHWHVWLPRQ\RIDNH\ZLWQHVVZKLFKZHQW           ULJKW WR RIIHU WHVWLPRQ\ WKDW LV LQFRPSHWHQW SULYLOHJHG RU
WRNH\HOHPHQWVRIWKHSURVHFXWLRQjVFODLP6SHFLILFDOO\LQ           RWKHUZLVH LQDGPLVVLEOH XQGHU VWDQGDUG UXOHV RI HYLGHQFHl
'DYLV WKH SHWLWLRQHU DUJXHG WKDW HYLGHQFH UHJDUGLQJ WKH         7D\ORU Y ,OOLQRLV  86     5DWKHU VKH
YHUDFLW\ RI WKH WHVWLPRQ\ IURP D NH\ ZLWQHVV IRU WKH           mPXVW FRPSO\ ZLWK HVWDEOLVKHG UXOHV RI SURFHGXUH DQG
SURVHFXWLRQVKRXOGQRWKDYHEHHQH[FOXGHGIURPWULDO,GDW           HYLGHQFHGHVLJQHGWRDVVXUHERWKIDLUQHVVDQGUHOLDELOLW\LQWKH
,QDJUHHLQJZLWKWKHSHWLWLRQHUWKH6XSUHPH&RXUWIRXQG          DVFHUWDLQPHQW RI JXLOW DQG LQQRFHQFHl  &KDPEHUV Y
WKDWmWKHMXURUVZHUHHQWLWOHGWRKDYHWKHEHQHILWRIWKHGHIHQVH       0LVVLVVLSSL86$VWKH6XSUHPH&RXUW
WKHRU\ EHIRUH WKHP VR WKDW WKH\ FRXOG PDNH DQ LQIRUPHG         H[SODLQHGLQ6FKHIIHU
MXGJPHQWDVWRWKHZHLJKWWRSODFHRQ>WKHZLWQHVVj@WHVWLPRQ\
ZKLFKSURYLGHGDFUXFLDOOLQNLQWKHSURRIRISHWLWLRQHUjV          mVWDWHDQGIHGHUDOUXOHPDNHUVKDYHEURDGODWLWXGHXQGHU
DFWl,GLQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG7KH          WKH &RQVWLWXWLRQ WR HVWDEOLVK UXOHV H[FOXGLQJ HYLGHQFH
&RXUWUHDVRQHGWKDWm>W@KHDFFXUDF\DQGWUXWKIXOQHVVRI>WKH              IURP FULPLQDO WULDOV  6XFK UXOHV GR QRW DEULGJH DQ
ZLWQHVVj@WHVWLPRQ\ZHUHNH\HOHPHQWVLQWKH6WDWHjVFODLP                DFFXVHGjVULJKWWRSUHVHQWDGHIHQVHVRORQJDVWKH\DUH
DJDLQVWWKHSHWLWLRQHUl,G                                             QRWµDUELWUDU\jRUµGLVSURSRUWLRQDWHWRWKHSXUSRVHVWKH\
                                                                          DUH GHVLJQHG WR VHUYHjl  6FKHIIHU  86 DW 
   6LPLODUO\LQWKHPDWWHUDWKDQGWKHDFFXUDF\RI3HWLWLRQHUjV         FLWDWLRQVRPLWWHG
WHVWLPRQ\ZHQWWRDNH\HOHPHQWLQWKHVWDWHjVFODLPDJDLQVW
KHULQDVPXFKDVZKHWKHUWKHWDONRINLOOLQJ5RFNZHOOZDVDQ               7KH &RQVWLWXWLRQ GRHV WR EH VXUH mJXDUDQWHH>@ FULPLQDO
DJUHHPHQWIRUSXUSRVHVRIVHFXULQJDFRQVSLUDF\FRQYLFWLRQ              GHIHQGDQWVµDPHDQLQJIXORSSRUWXQLW\WRSUHVHQWDFRPSOHWH
GHSHQGHG XSRQ ZKHWKHU WKH MXU\ EHOLHYHG 3HWLWLRQHUjV              GHIHQVHjl  &UDQH Y .HQWXFN\  86   
mWKHUDS\GHIHQVHl7KHFUHGLELOLW\RI3HWLWLRQHUjVWHVWLPRQ\           FLWDWLRQV RPLWWHG HPSKDVLV VXSSOLHG  7KDW JXDUDQWHH
LQSUHVHQWLQJWKLVGHIHQVHLQWXUQGHSHQGHGXSRQZKHWKHUWKH          ZRXOG KDYH EHHQ YLRODWHG KHUH QR GRXEW LI WKH 0LFKLJDQ
MXU\ZDVDZDUHRIDOORIWKHHYLGHQFHVXSSRUWLQJLWoLQFOXGLQJ         FRXUWV KDG SUHYHQWHG 0UV 5RFNZHOO IURP LQWURGXFLQJ DQ\
HYLGHQFHRI5RFNZHOOjVDOOHJHGVH[XDODEXVHoVRWKDWWKHMXU\          WHVWLPRQ\ EHDULQJ RQ WKH FLUFXPVWDQFHV XQGHU ZKLFK WKH
mFRXOGPDNHDQLQIRUPHGMXGJPHQWDVWRWKHZHLJKWWRSODFH              GLVFXVVLRQVZLWKKHUVRQVZHUHFRQGXFWHG%XWWKDWGLGQRW
RQl 3HWLWLRQHUjV WHVWLPRQ\  6HH 'DYLV  86 DW        KDSSHQ  7KH VWDWH WULDO FRXUWjV UXOLQJ GLG QRW EDU 0UV
$OWKRXJK LW LV WUXH WKDW LQ 'DYLV WKH FUHGLELOLW\ RI WKH     5RFNZHOOIURPWHVWLI\LQJWKDWKHUVRQVKDWHGWKHLUIDWKHU,W
WHVWLPRQ\ DW LVVXH ZDV WKDW RI D NH\ ZLWQHVV IRU WKH          GLGQRWEDUKHUIURPH[SODLQLQJWKDWWKHER\VKDGEHHQEHDWHQ
SURVHFXWLRQZKLOHLQWKHPDWWHUDWKDQGWKHFUHGLELOLW\RIWKH         DQGVXEMHFWHGWRSV\FKRORJLFDODEXVHE\WKHPDQWKH\WDONHG
WHVWLPRQ\ DW LVVXH LV WKDW RI 3HWLWLRQHU WKH HQG UHVXOW RI
       5RFNZHOOY<XNLQV                                1R        1R                            5RFNZHOOY<XNLQV       

RINLOOLQJ,WGLGQRWEDUKHUIURPWHOOLQJWKHMXU\WKDWVKH                                     BBBBBBBBBBBBBBBB
WKRXJKWVXFKWDONZDVKHDOWK\WKDWVKHGLGQRWWKLQNLWZRXOG
OHDGWRRYHUWDFWLRQDQGWKDWVKHKDGQHYHUEHHQDSDUW\WRDQ\                                        ',66(17
PXWXDOXQGHUVWDQGLQJRUDJUHHPHQWWRFRPPLWPXUGHU8QGHU                                          BBBBBBBBBBBBBBBB
WKHVHFLUFXPVWDQFHVLQRXUMXGJPHQWLWZDVQRWXQUHDVRQDEOH
IRU WKH 0LFKLJDQ &RXUW RI $SSHDOV WR FRQFOXGH WKDW 0UV                &/$<&LUFXLWsXGJHGLVVHQWLQJ%HFDXVH,EHOLHYHWKDW
5RFNZHOOjVRSSRUWXQLW\WRSUHVHQWDFRPSOHWHGHIHQVHZDVQRW                  WKH VWDWH FRXUWV XQUHDVRQDEO\ DSSOLHG FRQWUROOLQJ 6XSUHPH
XQFRQVWLWXWLRQDOO\LPSDLUHG                                                 &RXUWSUHFHGHQWLQUHMHFWLQJ3HWLWLRQHUjVFODLPWKDWVKHZDV
                                                                              GHQLHG KHU )LIWK $PHQGPHQW ULJKW WR SUHVHQW D FRPSOHWH
  7KHGHFLVLRQRIWKHGLVWULFWFRXUWLV5(9(56('DQGWKH                     GHIHQVHE\H[FOXGLQJHYLGHQFHRI(GZDUG5RFNZHOOjVDOOHJHG
FDVH LV 5(0$1'(' ZLWK LQVWUXFWLRQV WR GLVPLVV WKH                      VH[XDODEXVHRIKLVVRQV,ZRXOGDIILUPWKHGLVWULFWFRXUWjV
SHWLWLRQ                                                                     RUGHUJUDQWLQJ3HWLWLRQHUjV DSSOLFDWLRQIRUDZULWRIKDEHDV
                                                                              FRUSXV(YLGHQFHRI5RFNZHOOjVDOOHJHGVH[XDODEXVHRIKLV
                                                                              VRQVZDVDWWKHFRUHRI3HWLWLRQHUjVmWDONWKHUDS\lGHIHQVH
                                                                              VXFKWKDWZLWKRXWWKLVHYLGHQFH3HWLWLRQHUjVGHIHQVHKDGOLWWOH
                                                                              FKDQFHRIDSSHDULQJPHULWRULRXVLQWKHH\HVRIWKHMXU\
                                                                                 7KH6XSUHPH&RXUWKDVLQVWUXFWHGWKDWmDQXQUHDVRQDEOH
                                                                              DSSOLFDWLRQ RI IHGHUDO ODZ LV GLIIHUHQW IURP DQ LQFRUUHFW
                                                                              DSSOLFDWLRQRIIHGHUDOODZlDQGWKDWDIHGHUDOFRXUWPD\QRW
                                                                              JUDQWDZULWRIKDEHDVFRUSXVXQGHUEHFDXVHWKHFRXUW
                                                                              FRQFOXGHV LQ LWV LQGHSHQGHQW MXGJPHQW WKDW WKH VWDWH FRXUW
                                                                              DSSOLHG FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ mHUURQHRXVO\ RU
                                                                              LQFRUUHFWO\l  6HH :LOOLDPV Y 7D\ORU   86  
                                                                              7KH&RXUWZHQWRQWRUHFRJQL]HWKDWmXQUHDVRQDEOHl
                                                                              LVmQRGRXEWGLIILFXOWWRGHILQHlEXWDOVRQRWHGWKDWmLWLVD
                                                                              FRPPRQWHUPLQWKHOHJDOZRUOGDQGDFFRUGLQJO\IHGHUDO
                                                                              MXGJHVDUHIDPLOLDUZLWKLWVPHDQLQJl,G:KHQFRQVLGHULQJ
                                                                              3HWLWLRQHUjV FODLP LQ WKH PDWWHU DW KDQG WKH
                                                                              mXQUHDVRQDEOHQHVVlDVWKDWWHUPLVFRPPRQO\NQRZQRIWKH
                                                                             0LFKLJDQFRXUWVjGHFLVLRQVXQGHUSUHYDLOLQJ6XSUHPH&RXUW
     %\ WKH VDPH WRNHQ WKH UXOLQJ GLG QRW EDU 0UV 5RFNZHOO IURP
VLPSO\ WHVWLI\LQJ WKDW WKH ER\V KDG DQ LQWHQVH KDWUHG RI WKHLU IDWKHU         SUHFHGHQWFRXOGQRWEHPRUHFOHDU%\H[FOXGLQJHYLGHQFHRI
EHFDXVH RI ZKDW KH KDG GRQH WR WKHP      6XFK D WDFN ZRXOG KDYH SRVHG        WKH YHU\ EDVLV IRU 3HWLWLRQHUjV mWDON WKHUDS\l GHIHQVH WKH
VRPHWKLQJ RI D GLOHPPD IRU WKH SURVHFXWLRQ     ,I WKH WHVWLPRQ\ KDG JRQH
                                                                              0LFKLJDQ FRXUWV mXQUHDVRQDEO\l GHQLHG 3HWLWLRQHU KHU
XQFKDOOHQJHG WKH MXU\ PLJKW ZHOO KDYH DFFHSWHG LW ,I WKH SURVHFXWLRQ KDG
FURVVH[DPLQHG 0UV 5RFNZHOO DV WR ZKDW VKH PHDQW RQ WKH RWKHU KDQG
                                                                              FRQVWLWXWLRQDOULJKWWRSUHVHQWDmFRPSOHWHGHIHQVHl
RU LI LW KDG SUHVHQWHG WKH KXVEDQG DV D ZLWQHVV DQG HYRNHG D GHQLDO WKDW KH
KDG GRQH DQ\WKLQJ WR FDXVH WKH ER\V WR KDWH KLP WKH GRRU ZRXOG WKHQ            7KHGLVWULFWFRXUWjVUHDVRQLQJLQJUDQWLQJWKHSHWLWLRQLQWKLV
KDYH EHHQ RSHQHG LQ DOO SUREDELOLW\ IRU 0UV 5RFNZHOO         WR SUHVHQW    FDVHLVERWKVRXQGDQGSHUVXDVLYHDQGWKHPDMRULW\jVDWWHPSW
HYLGHQFH RI WKH DOOHJHG VH[XDO PLVFRQGXFW
