       5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
            3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

    (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                )LOH 1DPH DS




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


&+$5/(6 .,1&$,'                 ;
LQGLYLGXDOO\DQGRQEHKDOIRI     
DOORWKHUVVLPLODUO\VLWXDWHG    
                                    1R
&$35, &2))(5LQGLYLGXDOO\        
DQGRQEHKDOIRIDOORWKHUV        !
                                  
VLPLODUO\VLWXDWHG               
          3ODLQWLIIV$SSHOODQWV  
                                  
           Y                     
                                  
                                  
%(77< *,%621HWDO             
       'HIHQGDQWV$SSHOOHHV 
                                 1
     $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
   IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW)UDQNIRUW
   1RnsRVHSK0+RRG'LVWULFWsXGJH
                 $UJXHG0D\
           'HFLGHGDQG)LOHGsDQXDU\
  %HIRUH0$57,1&KLHIsXGJH0(55,775<$1
    %2**61255,668+5+(,15,&+6,/(5
%$7&+(/'(5'$8*+75(<0225(&2/(&/$<
            DQG*,/0$1&LUFXLWsXGJHV




                             
     .LQFDLGHWDOY*LEVRQHWDO             1R

                     BBBBBBBBBBBBBBBBB
                          &2816(/
$5*8(':LQWHU5+XII/$:2)),&(62)s2+1*
35$7+(56RPHUVHW.HQWXFN\IRU$SSHOODQWVs*XWKULH
7UXHs2+1621s8'<758(	*8$51,(5,)UDQNIRUW
.HQWXFN\ IRU $SSHOOHHV  21 %5,()  :LQWHU 5 +XII
/$: 2)),&(6 2) s2+1 * 35$7+(5 6RPHUVHW
.HQWXFN\ ' %UXFH 2UZLQ 6RPHUVHW .HQWXFN\ IRU
$SSHOODQWVs*XWKULH7UXHs2+1621s8'<758(	
*8$51,(5,)UDQNIRUW.HQWXFN\IRU$SSHOOHHV
  &2/( s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
0$57,1 & s 0(55,77 6,/(5 '$8*+75(<
0225( &/$< DQG *,/0$1 ss MRLQHG  5<$1 s
SGHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ%2**6s
SSGHOLYHUHGDVHSDUDWHRSLQLRQFRQFXUULQJLQSDUW
DQG GLVVHQWLQJ LQ SDUW  1255,6 s S  GHOLYHUHG D
VHSDUDWHGLVVHQWLQJRSLQLRQLQZKLFK68+5+(,15,&+DQG
%$7&+(/'(5ssMRLQHG
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  5*8<&2/(s5&LUFXLWsXGJH3ODLQWLIIV$SSHOODQWV
&KDUOHV.LQFDLGDQG&DSUL&RIIHUDSSHDOWKHGLVWULFWFRXUWjV
JUDQWRIVXPPDU\MXGJPHQWXSKROGLQJ'HIHQGDQWV$SSHOOHHVj
FRQILVFDWLRQ DQG EDQ RQ GLVWULEXWLRQ RI D FROOHJH \HDUERRN
HGLWHGE\&RIIHU8SRQHQEDQFUHYLHZZHGHWHUPLQHWKDWWKH
.68RIILFLDOVYLRODWHGWKH)LUVW$PHQGPHQWULJKWVRI.LQFDLG
DQG &RIIHU  $FFRUGLQJO\ ZH 5(9(56( WKH RUGHU RI WKH
GLVWULFW FRXUW DQG 5(0$1' WKH FDVH ZLWK LQVWUXFWLRQV WR
HQWHU MXGJPHQW LQ IDYRU RI .LQFDLG DQG &RIIHU DQG WR
GHWHUPLQHWKHUHOLHIWRZKLFKWKH\DUHHQWLWOHG6HHHJ/HLOD
+RVSDQG+HDOWK&WUY%RZHQ)GWK&LU

1R                         .LQFDLGHWDOY*LEVRQHWDO                   

                              ,%$&.*5281'
                            $)DFWXDO%DFNJURXQG
  $WWKHWLPHVUHOHYDQWWRWKLVFDVHERWK.LQFDLGDQG&RIIHU
ZHUH UHJLVWHUHG VWXGHQWV DW .HQWXFN\ 6WDWH 8QLYHUVLW\
m.68lDSXEOLFVWDWHIXQGHGXQLYHUVLW\%HWW\*LEVRQZDV
.68jV 9LFH 3UHVLGHQW IRU 6WXGHQW $IIDLUV  .68 IXQGHG
SURGXFWLRQ DQG GLVWULEXWLRQ RI 7KH 7KRUREUHG WKH VWXGHQW
\HDUERRN  .68 VWXGHQWV FRPSRVHG DQG SURGXFHG 7KH
7KRUREUHGZLWKOLPLWHGDGYLFHIURPWKHXQLYHUVLW\jVVWXGHQW
SXEOLFDWLRQVDGYLVRUDVGLVFXVVHGLQIUD
   &RIIHUVHUYHGDVWKHHGLWRURIWKH\HDUERRNGXULQJWKH
DFDGHPLF\HDU$OWKRXJKDVWXGHQWSKRWRJUDSKHUDQGDW
OHDVW RQH RWKHU VWXGHQW DVVLVWHG KHU DW RQH SRLQW &RIIHU
RUJDQL]HGDQGSXWWRJHWKHUWKH\HDUERRNKHUVHOIDIWHUKHUVWDII
PHPEHUVORVWLQWHUHVWLQWKHSURMHFW&RIIHUHQGHDYRUHGWR
mGRVRPHWKLQJGLIIHUHQWlZLWKWKH\HDUERRNLQRUGHUWRmEULQJ
.HQWXFN\6WDWH8QLYHUVLW\LQWRWKHQLQHWLHVlVKHDOVRVRXJKW
WRmSUHVHQWD\HDUERRNWRWKHVWXGHQWSRSXODWLRQWKDWZDVZKDW
WKH\>KDG@QHYHUVHHQEHIRUHl7RWKHVHHQGV&RIIHUFUHDWHG
DSXUSOHFRYHUXVLQJDPDWHULDONQRZQDVmUDLQVKRZHUIRLO
VWDPSlDQGIRUWKHILUVWWLPHJDYHWKH\HDUERRNDWKHPH
7KHWKHPHmGHVWLQDWLRQXQNQRZQlGHVFULEHGWKHDWPRVSKHUH
RImXQFHUWDLQW\lWKDW&RIIHUEHOLHYHGFKDUDFWHUL]HGWKHWLPH
&RIIHU IRXQG HYLGHQFH RI WKLV XQFHUWDLQW\ LQ VWXGHQWV
ZRQGHULQJ mZKHUH DUH ZH JRLQJ LQ RXU OLYHVl LQ KLJK
XQHPSOR\PHQWUDWHVDQGLQDFXUUHQWFRQWURYHUV\UHJDUGLQJ


    
         %RWK .LQFDLG DQG &RIIHU DVVHUW WKDW WKH\ DORQJ ZLWK DOO RWKHU .68
VWXGHQWV    SDLG    D    PDQGDWRU\    HLJKW\GROODU   VWXGHQW   DFWLYLW\   IHH   DW   WKH
EHJLQQLQJ     RI    WKH        VFKRRO   \HDU   ZKLFK   FRYHUHG   WKH   FRVWV    RI
VXSSO\LQJ HDFK .68 VWXGHQW ZLWK D FRS\ RI                 7KH 7KRUREUHG          ,Q KHU
GHSRVLWLRQ *LEVRQ VWDWHG WKDW WKH VWXGHQW DFWLYLW\ IHH GLG QRW IXQG WKH
\HDUERRN EXW UDWKHU WKDW WKH \HDUERRN ZDV IXQGHG E\ JHQHUDO UHYHQXH
7KLV GLIIHUHQFH RI RSLQLRQ LV QRW PDWHULDOO\ UHODWHG WR WKH GLVSXWH DW KDQG
%HFDXVH WKH SDUWLHV DJUHH WKDW WKH \HDUERRN ZDV IXQGHG E\ WKH XQLYHUVLW\
DQG EHFDXVH WKH XQLYHUVLW\ LV D VWDWHIXQGHG LQVWLWXWLRQ .LQFDLG DQG
&RIIHU KDYH )LUVW $PHQGPHQW ULJKWV XQGHU D IRUXP DQDO\VLV DV GHWDLOHG
LQIUD
     .LQFDLGHWDOY*LEVRQHWDO             1R       1R              .LQFDLGHWDOY*LEVRQHWDO    

ZKHWKHU .68 ZDV JRLQJ WR EHFRPH D FRPPXQLW\ FROOHJH                                BBBBBBBBBBBBBB
&RIIHULQFOXGHGSLFWXUHVLQWKH\HDUERRNGHSLFWLQJHYHQWVDW
.68 DQG LQ LWV VXUURXQGLQJ FRPPXQLW\ DQG SROLWLFDO DQG                                ',66(17
FXUUHQWHYHQWVLQWKHQDWLRQDQGZRUOGDWODUJH7KH\HDUERRN                              BBBBBBBBBBBBBB
FRYHUHG ERWK WKH  DQG  DFDGHPLF \HDUV
EHFDXVHWKHVWXGHQWVZRUNLQJRQWKH\HDUERRNKDG                $/$1 ( 1255,6 &LUFXLW sXGJH GLVVHQWLQJ  :KLOH ,
IDOOHQEHKLQGVFKHGXOH$OWKRXJKWKH\HDUERRNZDVRULJLQDOO\         DJUHH ZLWK WKH PDMRULW\jV GLVFXVVLRQ RI WKH XQGHUO\LQJ
SURMHFWHGWRFRQWDLQSDJHV&RIIHUWHVWLILHGWKDWWKHILQDO       SUHFHSWVRIWKH)LUVW$PHQGPHQW,FRQWLQXHWREHOLHYHWKDW
SURGXFWFRQWDLQHGRQO\SDJHVEHFDXVHVKHGLGQRWKDYH            WKHUHFRUGVXSSRUWVDFRQFOXVLRQWKDWWKHXQLYHUVLW\GLGQRW
HQRXJKSLFWXUHVWRILOOSDJHVDQGEHFDXVHWKHXQLYHUVLW\          FUHDWHDOLPLWHGSXEOLFIRUXPIRUWKHUHDVRQVRXWOLQHGLQWKH
DGPLQLVWUDWLRQ WRRN QR LQWHUHVW LQ WKH SXEOLFDWLRQ  &RIIHU   SULRUSDQHOjVYDFDWHGRSLQLRQ.LQFDLGY*LEVRQ)G
FRPSOHWHG WKH \HDUERRN VHYHUDO WKRXVDQG GROODUV XQGHU           WK&LU$VVXPLQJWKDWWKH7KRUREUHG
EXGJHWDQGVHQWWKH\HDUERRNWRWKHSULQWHULQ0D\RUsXQHRI        UHSUHVHQWVDQRQSXEOLFIRUXPWKHQ

                                                                        >L@W LV QR GRXEW UHDVRQDEOH WKDW .68 VKRXOG VHHN WR
   :KHQ WKH \HDUERRN FDPH EDFN IURP WKH SULQWHU LQ              PDLQWDLQLWVLPDJHWRSRWHQWLDOVWXGHQWVDOXPQLDQGWKH
1RYHPEHU  *LEVRQ REMHFWHG WR VHYHUDO DVSHFWV RI LW        JHQHUDOSXEOLF,QOLJKWRIWKHXQGLVSXWHGO\SRRUTXDOLW\
ILQGLQJ WKH SXEOLFDWLRQ WR EH RI SRRU TXDOLW\ DQG               RIWKH\HDUERRNLWLVDOVRUHDVRQDEOHWKDW.68PLJKWFXW
mLQDSSURSULDWHl  ,Q SDUWLFXODU *LEVRQ REMHFWHG WR WKH          LWVORVVHVE\UHIXVLQJWRGLVWULEXWHDXQLYHUVLW\SXEOLFDWLRQ
\HDUERRNjVSXUSOHFRYHU.68jVVFKRROFRORUVDUHJUHHQDQG              WKDWPLJKWWDUQLVKUDWKHUWKDQHQKDQFHWKDWLPDJH
JROGLWVmGHVWLQDWLRQXQNQRZQlWKHPHWKHODFNRIFDSWLRQV
XQGHUPDQ\RIWKHSKRWRVDQGWKHLQFOXVLRQRIFXUUHQWHYHQWV         ,GDWIRRWQRWHRPLWWHG$OWKRXJKZLWKWKHEHQHILWRI
RVWHQVLEO\ XQUHODWHG WR .68  $IWHU FRQVXOWLQJ ZLWK .68       KLQGVLJKWLWPLJKWEHVDLGWKDWWKHXQLYHUVLW\FRXOGKDYHGHDOW
3UHVLGHQW0DU\6PLWKDQGRWKHUXQQDPHGXQLYHUVLW\RIILFLDOV          ZLWKWKLVVLWXDWLRQPRUHHIIHFWLYHO\mUHJXODWLRQRIVSHHFKLQ
*LEVRQDQG6PLWKGHFLGHGWRFRQILVFDWHWKH\HDUERRNVDQGWR           DQRQSXEOLFIRUXPQHHGRQO\EHUHDVRQDEOHLWQHHGQRWEHWKH
ZLWKKROGWKHPIURPWKH.68FRPPXQLW\*LEVRQFRQWDFWHG               PRVWUHDVRQDEOHRUWKHRQO\UHDVRQDEOHOLPLWDWLRQl,GFLWLQJ
/HVOLH 7KRPDV .68jV 'LUHFWRU RI 6WXGHQW /LIH DQG             ,QWHUQDWLRQDO6RFj\IRU.ULVKQD&RQVFLRXVQHVVY/HH
LQVWUXFWHGKHUWRVHFXUHWKH\HDUERRNVVRWKDWWKH\ZRXOGQRW         86LQWHUQDOTXRWDWLRQPDUNVRPLWWHG
EHGLVWULEXWHG7KRPDVFRQWDFWHG.68jVGLUHFWRUIRUVHUYLFH
PDQDJHPHQWZKRHQVXUHGWKDWWKH\HDUERRNVZHUHVHFXUHG                $FFRUGLQJO\,UHVSHFWIXOO\GLVVHQW
$OWKRXJK*LEVRQjVLQWHQWLRQZDVmSHUKDSV>WR@GLVFDUG>WKH
\HDUERRNV@l*LEVRQjVFRXQVHOLQGLFDWHGDWRUDODUJXPHQWWKDW
WKH\HDUERRNVUHPDLQKLGGHQDZD\RQ.68jVFDPSXV
                 %3URFHGXUDO%DFNJURXQG
  ,Q 1RYHPEHU  .LQFDLG DQG &RIIHU VXHG *LEVRQ
6PLWKDQGLQGLYLGXDOPHPEHUVRIWKH.68%RDUGRI5HJHQWV
XQGHU  86&   DOOHJLQJ WKDW WKH XQLYHUVLW\jV
FRQILVFDWLRQ RI DQG IDLOXUH WR GLVWULEXWH WKH  .68
    .LQFDLGHWDOY*LEVRQHWDO              1R       1R                    .LQFDLGHWDOY*LEVRQHWDO        

   7KXV XQGHU HLWKHU OHJDO DQDO\VLV , EHOLHYH WKDW IDFWXDO   VWXGHQW \HDUERRN YLRODWHG WKHLU ULJKWV XQGHU WKH )LUVW DQG
LVVXHVUHPDLQDQGWKHUHVKRXOGEHDWULDOUDWKHUWKDQRXUFRXUW      )RXUWHHQWK$PHQGPHQWVWRWKH8QLWHG6WDWHV&RQVWLWXWLRQ
RUGHULQJMXGJPHQWIRUWKHSODLQWLIIV                                  .LQFDLGDQG&RIIHUVRXJKWGDPDJHVDQGLQMXQFWLYHUHOLHI
                                                                         %RWKSDUWLHVPRYHGIRUVXPPDU\MXGJPHQWRQWKH\HDUERRN
                                                                       FODLP  7KH GLVWULFW FRXUW DSSOLHG D IRUXP DQDO\VLV WR WKH
                                                                       VWXGHQWVj)LUVW$PHQGPHQWFODLPDQGIRXQGWKDWWKH.68
                                                                       \HDUERRNZDVDQRQSXEOLFIRUXP6HH3HUU\(GXF$VVjQY
                                                                       3HUU\/RFDO(GXFDWRUVj$VVjQ867KH
                                                                       GLVWULFWFRXUWUHDVRQHGWKDW.LQFDLGDQG&RIIHUKDGmSXWIRUWK
                                                                       QR HYLGHQFH WKDW 7KH 7KRUREUHG ZDV LQWHQGHG WR UHDFK RU
                                                                       FRPPXQLFDWHZLWKDQ\ERG\EXW.68VWXGHQWVlDQGKHOGWKDW
                                                                       mWKH\HDUERRNZDVQRWLQWHQGHGWREHDMRXUQDORIH[SUHVVLRQ
                                                                       DQGFRPPXQLFDWLRQLQDSXEOLFIRUXPVHQVHEXWLQVWHDGZDV
                                                                       LQWHQGHGWREHDMRXUQDORIWKHµJRLQJVRQjLQ>D@SDUWLFXODU
                                                                       \HDU DW .68l  +DYLQJ IRXQG WKDW WKH \HDUERRN ZDV QRW D
                                                                       SXEOLF IRUXP WKH FRXUW KHOG WKDW WKH XQLYHUVLW\ RIILFLDOVj
                                                                       UHIXVDO WR GLVWULEXWH WKH \HDUERRN mRQ WKH JURXQGV WKDW WKH
                                                                       \HDUERRNZDVQRWRISURSHUTXDOLW\DQGGLGQRWUHSUHVHQWWKH
                                                                       VFKRROD>V@LWVKRXOGlZDVUHDVRQDEOH$FFRUGLQJO\WKHFRXUW
                                                                       JUDQWHGWKH.68RIILFLDOVjPRWLRQIRUVXPPDU\MXGJPHQWDQG
                                                                       GHQLHGWKHVWXGHQWVjPRWLRQ%RWKLQILQGLQJWKDWWKH.68
                                                                       \HDUERRNZDVDQRQSXEOLFIRUXPDQGLQILQGLQJWKDWWKH.68
                                                                       RIILFLDOVjDFWLRQVZHUHUHDVRQDEOHWKHGLVWULFWFRXUWUHOLHGLQ
                                                                       SDUWXSRQ+D]HOZRRG6FK'LVWY.XKOPHLHU86
                                                                       
                                                                         $GLYLGHGSDQHORIWKLVFRXUWDIILUPHGWKHGLVWULFWFRXUWjV
                                                                       RSLQLRQ6HH.LQFDLGY*LEVRQ)G:HJUDQWHG
                                                                       HQEDQFUHYLHZWRGHWHUPLQHZKHWKHUWKHSDQHODQGWKHGLVWULFW
                                                                       FRXUW HUUHG LQ DSSO\LQJ +D]HOZRRG  D FDVH WKDW GHDOV


                                                                           
                                                                            .LQFDLG DQG &RIIHU UDLVHG VHYHUDO RWKHU FODLPV ZKLFK DUH QRW EHIRUH
                                                                       XV RQ DSSHDO   6HH    .LQFDLG Y *LEVRQ  )G   WK &LU
                                                                          YDFDWHG E\    )G  WK &LU 

                                                                           
                                                                             ,Q +D]HOZRRG WKH &RXUW KHOG WKDW D QHZVSDSHU SXEOLVKHG E\ D
                                                                       SXEOLF KLJK VFKRRO MRXUQDOLVP FODVV ZDV D QRQSXEOLF IRUXP  86 DW
                                                                        DQG WKDW VFKRRO RIILFLDOVj UHJXODWLRQ RI WKH FRQWHQW RI WKH SDSHU ZDV
                                                                       UHDVRQDEO\ UHODWHG WR OHJLWLPDWH SHGDJRJLFDO FRQFHUQV LG DW 
       .LQFDLGHWDOY*LEVRQHWDO                   1R        1R               .LQFDLGHWDOY*LEVRQHWDO     

H[FOXVLYHO\ZLWKWKH)LUVW$PHQGPHQWULJKWVRIVWXGHQWVLQD                    BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
KLJK VFKRRO VHWWLQJ  WR WKH XQLYHUVLW\ VHWWLQJ DQG WR
H[DPLQHZKHWKHUWKHGLVWULFWFRXUWHUUHGLQILQGLQJWKDWWKH                     &21&855,1*,13$57',66(17,1*,13$57
VWXGHQWSODLQWLIIVIDLOHGDVDPDWWHURIODZWRVXEPLWVXIILFLHQW               BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
HYLGHQFHWRSURYHWKDWWKH.68\HDUERRNLVDOLPLWHGSXEOLF
IRUXPUDWKHUWKDQDQRQSXEOLFIRUXP)RUWKHUHDVRQVWKDW                      %2**6&LUFXLWsXGJHFRQFXUULQJLQSDUWDQGGLVVHQWLQJ
IROORZZHKROGWKDWWKH.68\HDUERRNLVDOLPLWHGSXEOLF                      LQSDUW)URPP\UHDGLQJRIWKHUHFRUGLQWKLVFDVHWKHUHLV
IRUXPDQGWKDW.LQFDLGDQG&RIIHUKDYHSUHVHQWHGVXIILFLHQW                   VXEVWDQWLDOEXWQRWFRQFOXVLYHHYLGHQFHWKDWWKH.HQWXFN\
HYLGHQFH WKDW WKH XQLYHUVLW\ RIILFLDOV YLRODWHG WKHLU )LUVW             6WDWH 8QLYHUVLW\ DGPLQLVWUDWLRQ ZDV GLVSOHDVHG ZLWK WKH
$PHQGPHQWULJKWVWRSUHYDLODVDPDWWHURIODZ6HH)HG5                   FRQWHQWRIWKHSURSRVHG\HDUERRN7KHUHLVDOVRVXEVWDQWLDO
&LY3F                                                                 EXWQRWFRQFOXVLYHHYLGHQFHWKDWWKH\HDUERRNZDVRISRRU
                                                                               TXDOLW\)LQDOO\WKHUHLVVXEVWDQWLDOHYLGHQFHRQERWKVLGHVRI
                 ,,67$1'$5'2)5(9,(:                                       WKHTXHVWLRQRIZKLFKRIWKHVHPDWWHUVDFWXDOO\PRWLYDWHGWKH
                                                                               DGPLQLVWUDWLRQ8QGHUWKHVHFLUFXPVWDQFHV,ZRXOGUHYHUVH
  :HUHYLHZWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQW                     IRUDWULDORIWKHVHJHQXLQHLVVXHVRIPDWHULDOIDFW,WKHUHIRUH
GHQRYR6HH*UHHUY8QLWHG6WDWHV)GWK                   FRQFXULQWKHMXGJPHQWRIWKHFRXUWUHYHUVLQJWKHUXOLQJRIWKH
&LU   6XPPDU\ MXGJPHQW LV DSSURSULDWH ZKHQ mWKH                 GLVWULFW FRXUW EXW GLVVHQW IURP RXU MXGJPHQW RUGHULQJ WKDW
SOHDGLQJV GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG                   MXGJPHQWEHHQWHUHGIRUWKHVWXGHQWDSSHOODQWV
DGPLVVLRQVRQILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZ
WKDWWKHUHLVQRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDW                   ,Q EULHI VXPPDU\ , DJUHH WKDW D VWXGHQW \HDUERRN
                                                                               SXEOLFDWLRQRIWKHW\SHDWLVVXHKHUHFRXOGEHDOLPLWHGSXEOLF
                                                                               IRUXP%XWHYHQVXFKDIRUXPFDQEHVXEMHFWWRUHDVRQDEOH
                                                                              WLPH SODFH DQG PDQQHU UXOHV  , EHOLHYH VRPH PLQLPXP
      6HH +D]HOZRRG  86 DW  Q m:H QHHG QRW QRZ GHFLGH
ZKHWKHU WKH VDPH GHJUHH RI GHIHUHQFH LV DSSURSULDWH ZLWK UHVSHFW WR
                                                                               VWDQGDUGV RI FRPSHWHQFH FRXOG EH D UHDVRQDEOH mPDQQHUl
VFKRROVSRQVRUHG H[SUHVVLYH DFWLYLWLHV DW WKH FROOHJH DQG XQLYHUVLW\
                                                                               UHVWULFWLRQ$IWHUDOOLIWKHVWXGHQWVZHUHWRKDYHFKRVHQWR
OHYHOl VHH DOVR %RDUG RI 5HJHQWV RI WKH 8QLY RI :LVFRQVLQ 6\V Y          KDYHDm\HDUERRNlFRQVLVWLQJRIDVDFNRIFRQGRPVRU
6RXWKZRUWK  6 &W   Q  6RXWHU s FRQFXUULQJ LQ        ZKLWHVSDFHRUDUHSURGXFWLRQRIWKHPRUHREVFXUHSRUWLRQV
WKH MXGJPHQW m>RXU@ FDVHV GHDOLQJ ZLWK WKH ULJKW RI WHDFKLQJ LQVWLWXWLRQV    RI m)LQQHJDQjV :DNHl WKH FRXUWjV GHFLVLRQ WKDW WKH
WR OLPLW H[SUHVVLYH IUHHGRP RI VWXGHQWV KDYH EHHQ FRQILQHG WR KLJK
                                                                               DGPLQLVWUDWLRQKDGUHOLQTXLVKHGDOOFRQWURORYHUHYHQWKHIRUP
VFKRROV ZKRVH VWXGHQWV DQG WKHLU VFKRROjV UHODWLRQ WR WKHP DUH GLIIHUHQW
DQG DW OHDVW DUJXDEO\ GLVWLQJXLVKDEOH IURP WKHLU FRXQWHUSDUWV LQ FROOHJH
                                                                               RI WKH PDWHULDO LQ WKH \HDUERRN ZRXOG EH PXFK OHVV
HGXFDWLRQl FLWDWLRQV RPLWWHG                                              FRPSHOOLQJsXVWZKHUHWKHDFWXDOFRQWHQWGHILFLHQFLHVOLHRQ
                                                                               VXFKDVFDOHLV,EHOLHYHDGLVSXWHGLVVXHRIPDWHULDOIDFW
    
      7KH SDUWLHV HVVHQWLDOO\ DJUHH WKDW +D]HOZRRG DSSOLHV RQO\ PDUJLQDOO\
WR WKLV FDVH .LQFDLG DQG &RIIHU DUJXH WKDW +D]HOZRRG LV IDFWXDOO\               $W WKH VDPH WLPH WKH HYLGHQFH WKDW WKH DGPLQLVWUDWLRQjV
LQDSSRVLWH WR WKH FDVH DW KDQG WKH .68 RIILFLDOV DUJXH WKDW WKH GLVWULFW      FODLPVDUHSUHWH[WXDOLVDOVRVLJQLILFDQW7KHUHZDVHYLGHQFH
FRXUW UHOLHG XSRQ +D]HOZRRG RQO\ IRU JXLGDQFH LQ DSSO\LQJ IRUXP DQDO\VLV       WKDWDGPLQLVWUDWRUVZHUHGLVWXUEHGE\WKHYLHZSRLQWWKDWWKH\
WR VWXGHQW SXEOLFDWLRQV %HFDXVH ZH ILQG WKDW D IRUXP DQDO\VLV UHTXLUHV        SHUFHLYHGDVEHLQJH[SUHVVHG,DPWKHUHIRUHQRWSUHSDUHGWR
WKDW WKH \HDUERRN EH DQDO\]HG DV D OLPLWHG SXEOLF IRUXP  UDWKHU WKDQ D
QRQSXEOLF IRUXP  ZH DJUHH ZLWK WKH SDUWLHV WKDW +D]HOZRRG KDV OLWWOH
                                                                               VD\WKDWWKHUHPD\QRWKDYHEHHQYLHZSRLQWGLVFULPLQDWLRQ
DSSOLFDWLRQ WR WKLV FDVH &I 6WXGHQW *RYHUQPHQW $VVjQ Y %RDUG RI             ZKLFKZRXOGEHLOOHJLWLPDWHHYHQLQDQRQSXEOLFIRUP
7UXVWHHV RI WKH 8QLY RI 0DVVDFKXVHWWV  )G   Q VW &LU
 VWDWLQJ WKDW+D]HOZRRG    mLV QRW DSSOLFDEOH WR FROOHJH QHZVSDSHUVl
    .LQFDLGHWDOY*LEVRQHWDO             1R      1R               .LQFDLGHWDOY*LEVRQHWDO       

                  BBBBBBBBBBBBBBBBBBBBB                              WKHPRYLQJSDUW\LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl
                                                                     )HG 5 &LY 3 F  7KHUH LV QR GLVSXWH UHJDUGLQJ WKH
                     &21&855(1&(                                     PDWHULDOIDFWVRIWKLVFDVHLQGHHGHDFKSDUW\LQVLVWVWKDWWKH
                  BBBBBBBBBBBBBBBBBBBBB                              IDFWV DV SUHVHQWHG WR WKH GLVWULFW FRXUW UHTXLUH VXPPDU\
                                                                     MXGJPHQWLQKLVRUKHUIDYRU:HUHFRJQL]HWKDWm>W@KHIDFW
  5<$1&LUFXLWsXGJHFRQFXUULQJ,QWKHLQLWLDOGHFLVLRQRI       WKDWERWKSDUWLHVPDNHPRWLRQVIRUVXPPDU\MXGJPHQWDQG
WKLVFDVHE\DSDQHORIZKLFK,ZDVDPHPEHU,FRQFXUUHGLQ         HDFK FRQWHQGV LQ VXSSRUW RI KLV UHVSHFWLYH PRWLRQ WKDW QR
WKHRSLQLRQIRUDIILUPDQFH,WKRXJKWWKHQIRUWKHUHDVRQV         JHQXLQHLVVXHRIIDFWH[LVWVGRHVQRWUHTXLUHWKH&RXUWWRUXOH
H[SUHVVHGLQsXGJH1RUULVjVRSLQLRQIRUWKH SDQHOWKDWWKH         WKDWQRIDFWLVVXHH[LVWVl%HJQDXGY:KLWH)G
SODLQWLIIVKDGVXIIHUHGQRGHSULYDWLRQRIIUHHVSHHFK ULJKWV         WK &LU  DFFRUG *UHHU  )G DW 
XQGHU WKH )LUVW $PHQGPHQW  , QRZ WKLQN WKDW LQ VR         1RQHWKHOHVV mµFURVV PRWLRQV IRU VXPPDU\ MXGJPHQW GR
FRQFOXGLQJ,ZDVLQHUURU                                        DXWKRUL]HWKHFRXUWWRDVVXPHWKDWWKHUHLVQRHYLGHQFHZKLFK
                                                                     QHHGVWREHFRQVLGHUHGRWKHUWKDQWKDWZKLFKKDVEHHQILOHGE\
  , DP QRZ SHUVXDGHG IRU WKH UHDVRQV GHWDLOHG LQ sXGJH     WKH SDUWLHVjl  *UHHU  )G DW  FLWLQJ +DUULVRQ :
&ROHjV H[FHOOHQW RSLQLRQ IRU WKH FRXUW HQ EDQF WKDW WKH   &RUSY*XOI2LO&R)GWK&LU
GLVWULFWFRXUWjVMXGJPHQWLQIDYRURIWKHGHIHQGDQWVPXVWEH         7KHUHLVDVXEVWDQWLDODPRXQWRIWHVWLPRQ\DQGGRFXPHQWDU\
UHYHUVHG                                                            HYLGHQFHLQWKHUHFRUGEHIRUHXV7KXVZHDJUHHZLWKWKH
                                                                     SDUWLHVWKDWWKHIDFWVDVGHYHORSHGLQWKLVFDVHDUHVXIILFLHQWWR
                                                                     GHFLGHWKHFDVHLQDFFRUGDQFHZLWKFOHDUO\HVWDEOLVKHG)LUVW
                                                                     $PHQGPHQWODZDQGZHILQGQRPDWHULDOIDFWVLQGLVSXWHWKDW
                                                                     SUHYHQWWKHGLVWULFWFRXUWIURPJUDQWLQJVXPPDU\MXGJPHQWLQ
                                                                     IDYRURI.LQFDLGDQG&RIIHU
                                                                                           ,,,',6&866,21
                                                                       7KH LVVXH EHIRUH XV LV ZKHWKHU WKH XQLYHUVLW\ RIILFLDOV
                                                                     YLRODWHGWKH)LUVW$PHQGPHQWULJKWVRI.LQFDLGDQG&RIIHUE\
                                                                     FRQILVFDWLQJ DQG IDLOLQJ WR GLVWULEXWH WKH .68 VWXGHQW
                                                                     \HDUERRN  )RU WKH UHDVRQV WKDW IROORZ ZH DSSO\ D IRUXP
                                                                     DQDO\VLV WR WKH TXHVWLRQ DQG KROG WKDW WKH .68 \HDUERRN
                                                                     FRQVWLWXWHV D OLPLWHG RU mGHVLJQDWHGl SXEOLF IRUXP
                                                                     $FFRUGLQJO\ZHDQDO\]HWKHDFWLRQVWDNHQE\WKHXQLYHUVLW\
                                                                     RIILFLDOVZLWKUHVSHFWWRWKH\HDUERRNXQGHUVWULFWVFUXWLQ\
                                                                     DQGFRQFOXGHWKDWWKHRIILFLDOVjFRQILVFDWLRQRIWKH\HDUERRNV
                                                                     YLRODWHG.LQFDLGjVDQG&RIIHUjV)LUVW$PHQGPHQWULJKWV
                                                                              $$SSOLFDWLRQRI3XEOLF)RUXP'RFWULQH
                                                                       :HEHJLQZLWKWKHIXQGDPHQWDOSULQFLSOHWKDWWKHUHFDQEH
                                                                     mQR GRXEW WKDW WKH )LUVW $PHQGPHQW ULJKWV RI VSHHFK DQG
                                                                     DVVRFLDWLRQ H[WHQG WR WKH FDPSXVHV RI VWDWH XQLYHUVLWLHVl
     .LQFDLGHWDOY*LEVRQHWDO              1R       1R               .LQFDLGHWDOY*LEVRQHWDO     

:LGPDUY9LQFHQW86.68LVD                 ,WLVWKHUHVSRQVLELOLW\RIWKHHGLWRUWRYHULI\WKHDFFXUDF\RI
VWDWHIXQGHG SXEOLF XQLYHUVLW\ 6HH .< 5(9 67$7 $11          DOOSULQWHGPDWWHUDQGWRUHFRJQL]HWKDWKHVKHZLOOEHVXEMHFW
$VVXFKWKHDFWLRQV.68RIILFLDOVWDNHLQWKHLU        WRWKHOHJDOH[LJHQFLHVWKDWPD\DULVHIURPLPSURSHUUHSRUWLQJ
RIILFLDOFDSDFLWLHVFRQVWLWXWHVWDWHDFWLRQVIRUSXUSRVHVRI)LUVW     RIQHZV
$PHQGPHQWDQDO\VLV)XUWKHUWKHIXQGVDQGPDWHULDOVWKDW
.68DOORFDWHVWRZDUGSURGXFWLRQRI7KH7KRUREUHGFRQVWLWXWH
VWDWH SURSHUW\  6HH 8QLWHG )RRG 	 &RPPHUFLDO :RUNHUV
8QLRQ 8)&:8 /RFDO  Y 6RXWKZHVW 2KLR 5HJjO
7UDQVLW $XWK  )G   WK &LU   %\
FRQILVFDWLQJ WKH \HDUERRNV DW LVVXH LQ WKLV FDVH WKH .68
RIILFLDOV KDYH UHVWULFWHG DFFHVV WR VWDWH SURSHUW\ XVHG IRU
H[SUHVVLYH SXUSRVHV   m7KH 6XSUHPH &RXUW KDV DGRSWHG D
IRUXPDQDO\VLVIRUXVHLQGHWHUPLQLQJZKHWKHUDVWDWHLPSRVHG
UHVWULFWLRQ RQ DFFHVV WR SXEOLF SURSHUW\ LV FRQVWLWXWLRQDOO\
SHUPLVVLEOHl,G$FFRUGLQJO\ZHILQGWKDWIRUXPDQDO\VLVLV
DSSURSULDWHLQWKLVFDVH
   $OWKRXJK .LQFDLG DQG &RIIHU DUJXH WKHLU FDVH XQGHU WKH
IRUXP GRFWULQH WKH\ DUJXH LQ WKH DOWHUQDWLYH WKDW IRUXP
DQDO\VLVGRHVQRWDSSO\WRWKH.68\HDUERRNVEHFDXVHmIRUXP
DQDO\VLV LV RQO\ DSSURSULDWH ZKHQ WKH LVVXH FRQFHUQV WKH
DFFHVVVRXJKWE\WKHSURSRVHGVSHDNHUlDQGWKDWDFFHVVLVQRW
DWLVVXHLQWKLVFDVH$SSHOODQWVj6XSS %U DW :H
GLVDJUHH,WLVWUXHWKDWmDVSHDNHUPXVWVHHNDFFHVVWRSXEOLF
SURSHUW\ RU WR SULYDWH SURSHUW\ GHGLFDWHG WR SXEOLF XVH WR
HYRNH)LUVW$PHQGPHQWFRQFHUQVl6HH&RUQHOLXVY1$$&3
/HJDO 'HIHQVH DQG (GXF )XQG ,QF  86  
$OWKRXJKQHLWKHU.LQFDLGQRU&RIIHUVHHNVWRDGG
ZRUGVRUSKRWRJUDSKVWRWKH\HDUERRNDWWKLVSRLQWXQLYHUVLW\
RIILFLDOV KDYH FXW RII .68 VWXGHQWVj DFFHVV WR UHDG DQG
SRVVHVVLW)XUWKHUWKH6XSUHPH&RXUWKDVRIWHQDSSOLHGD
IRUXP DQDO\VLV WR H[SUHVVLYH DFWLYLW\ ZLWKLQ HGXFDWLRQDO
VHWWLQJV  6HH HJ 5RVHQEHUJHU Y 5HFWRU DQG 9LVLWRUV RI
8QLY RI 9LUJLQLD  86   DSSO\LQJ IRUXP
DQDO\VLVWRXQLYHUVLW\VWXGHQWDFWLYLWLHVIXQG3HUU\86
DSSO\LQJIRUXPDQDO\VLVWRVFKRROGLVWULFWjVLQWHUQDOPDLO
V\VWHP+D]HOZRRG86DSSO\LQJIRUXPDQDO\VLV
WRKLJKVFKRROQHZVSDSHU:LGPDU86DSSO\LQJ
IRUXPDQDO\VLVWRXQLYHUVLW\PHHWLQJIRUD7KXVZHILQGWKDW
    .LQFDLGHWDOY*LEVRQHWDO             1R      1R                            .LQFDLGHWDOY*LEVRQHWDO                              

   6HWTXDOLILFDWLRQV IRU DQG DSSRLQWVWDIIPHPEHUVIRU       IRUXPDQDO\VLVLVWKHDSSURSULDWHIUDPHZRUNXQGHUZKLFKWR
       HDFK SXEOLFDWLRQ XSRQ QRPLQDWLRQ RI LWV HGLWRU ZLWK    SURFHHGLQWKLVFDVH
       FRQFXUUHQFHRIWKH6WXGHQW3XEOLFDWLRQV$GYLVRUDOVR
       UHPRYHDQ\RIWKHVHVWDIIPHPEHUVIRUFDXVH                                                  %7\SHRI)RUXP
   $UUDQJHVHPLQDUVIRUVWXGHQWSXEOLFDWLRQVSHUVRQQHO               7KHUH LV QR UHDO GLVSXWH LQ WKLV FDVH WKDW WKH IRUXP LQ
      ZLWK VNLOOHG SXEOLFDWLRQV H[SHUWV IRU GLVFXVVLRQ RI      TXHVWLRQ LV 7KH 7KRUREUHG LWVHOI  7KH SDUWLHV GLVSXWH
      UHSRUWLQJHGLWLQJDQGRWKHUMRXUQDOLVWLFWHFKQLTXHV         VWUHQXRXVO\KRZHYHUWKHDSSURSULDWHFKDUDFWHUL]DWLRQRI7KH
                                                                     7KRUREUHGXQGHUIRUXPDQDO\VLV.LQFDLGDQG&RIIHUFRQWHQG
   3URYLGHWKH7KRUREUHG1HZVDQG7KRUREUHG\HDUERRN             WKDWWKH\HDUERRNLVDOLPLWHGSXEOLFIRUXPVXEMHFWRQO\WR
       VWDIIVZLWKFRXQVHODQGHQFRXUDJHWKHPWRPDLQWDLQ           UHDVRQDEOHWLPHSODFHDQGPDQQHUUHJXODWLRQVDQGWRRQO\
       >VLF@IRUILVFDOQHZVDQGHGLWRULDOUHVSRQVLELOLWLHV       WKRVHFRQWHQWEDVHGUHJXODWLRQVWKDWDUHQDUURZO\FUDIWHGWR
                                                                     VHUYHDFRPSHOOLQJVWDWHLQWHUHVW6HH3HUU\86DW
  ,Q VXEVLGL]LQJ WKH 7KRUREUHG 1HZV WKURXJK WKH 6WXGHQW       7KH.68RIILFLDOVUHVSRQGWKDWWKH\HDUERRNLVDQRQSXEOLF
3XEOLFDWLRQV%RDUGWKH8QLYHUVLW\H[SHFWVWKHQHZVSDSHUWR          IRUXPVXEMHFWWRDOOUHDVRQDEOHUHJXODWLRQVWKDWSUHVHUYHWKH
PDLQWDLQDWOHDVWWKHVHWZRVWDQGDUGVRITXDOLW\FRQWURO            \HDUERRNjVSXUSRVH6HHLG
   5HSRUW DFFXUDWHO\ DQG IDLUO\QHZVZRUWK\FDPSXV                7KH6XSUHPH&RXUWKDVUHFRJQL]HGWKUHHW\SHVRIIRUD7KH
       HYHQWVDQG                                                  ILUVWW\SHLVDWUDGLWLRQDOSXEOLFIRUXP$WUDGLWLRQDOSXEOLF
                                                                     IRUXPLVDSODFHmZKLFKE\ORQJWUDGLWLRQRUE\JRYHUQPHQW
   3XUVXHLPSRUWDQWQHZVHYHQWVWRPDNHVXUHWKH\DUH            ILDWKD>V@EHHQGHYRWHGWRDVVHPEO\DQGGHEDWHlVXFKDVD
       UHSRUWHGDQGFRPPHQWHGXSRQRQWKHHGLWRULDOSDJHV            VWUHHWRUSDUN6HHLGDW,QWUDGLWLRQDOSXEOLFIRUDmWKH
       ZLWK FRPSUHKHQVLRQ DQG IXOO XQGHUVWDQGLQJ RI WKH        ULJKWV RI WKH VWDWH WR OLPLW H[SUHVVLYH DFWLYLW\ DUH VKDUSO\
       IDFWV
  6LQFHWKH7KRUREUHG1HZVLVQRWDQRIILFLDORUJDQRIWKH
                                                                            
8QLYHUVLW\WKH6WXGHQW3XEOLFDWLRQ>V@%RDUGVKDOOFDXVHWREH              2XU GHFLVLRQ WR DSSO\ WKH IRUXP GRFWULQH WR WKH VWXGHQW \HDUERRN DW

LQVHUWHGLQWKHPDVWKHDGDVWDQGLQJDQGGLVWLQFWGLVFODLPHU          LVVXH LQ WKLV FDVH KDV QR EHDULQJ RQ WKH TXHVWLRQ RI ZKHWKHU DQG WKH H[WHQW

LQGLFDWLQJWKDWWKHYLHZVH[SUHVVHGDUHQRWQHFHVVDULO\WKRVH        WR ZKLFK D SXEOLF XQLYHUVLW\ PD\ DOWHU WKH FRQWHQW RI D VWXGHQW QHZVSDSHU

RIWKH8QLYHUVLW\EXWUDWKHUDUHWKRVHRIWKHQDPHGVWXGHQW         6HH HJ 6WDQOH\ Y 0DJUDWK                    )G         WK   &LU      ILQGLQJ




DXWKRUHGLWRURUERDUGRIHGLWRUV,QVHWWLQJTXDOLILFDWLRQVIRU
                                                                     YLRODWLRQ RI VWXGHQWV
 )LUVW $PHQGPHQW ULJKWV WR IUHH H[SUHVVLRQ ZKHUH

                                                                     XQLYHUVLW\ FXW VWXGHQW QHZVSDSHU
V IXQGLQJ DW OHDVW LQ SDUW RQ WKH EDVLV WKDW

WKHHGLWRUVRIWKHQHZVSDSHUDQG\HDUERRNWKH%RDUGVKDOO           LW GLVDSSURYHG RI SDSHUjV FRQWHQW             6FKLII Y :LOOLDPV           )G  


LQFOXGHDVXIILFLHQWO\KLJKDFDGHPLFDYHUDJHRUWKHVXFFHVVIXO       WK &LU  KROGLQJ WKDW mWKH ULJKW RI IUHH VSHHFK HPERGLHG LQ WKH


FRPSOHWLRQRIDEDVLFMRXUQDOLVPFRXUVHRUERWK7RDVVXUH          SXEOLFDWLRQ RI D FROOHJH VWXGHQW QHZVSDSHU FDQQRW EH FRQWUROOHG H[FHSW



WKDWWKHQHZVSDSHUDQG\HDUERRNLV>VLF@QRWRYHUZKHOPHGE\          XQGHU VSHFLDO FLUFXPVWDQFHVl            sR\QHU Y :KLWLQJ            )G   WK



LQHSWLWXGHDQGLQH[SHULHQFHWKH%RDUGVKDOOUHTXLUHWKHXVHRI
                                                                     &LU      VWDWLQJ    WKDW    mLI   D    FROOHJH     KDV    D    VWXGHQW      QHZVSDSHU       LWV

                                                                     SXEOLFDWLRQ    FDQQRW     EH   VXSSUHVVHG       EHFDXVH        FROOHJH      RIILFLDOV   GLVOLNH     LWV

DQH[SHULHQFHGDGYLVRU,QRUGHUWRPHHWUHVSRQVLEOHVWDQGDUGV       HGLWRULDO FRPPHQWl      $QWRQHOOL Y +DPPRQG                  )6XSS  ' 0DVV


RIMRXUQDOLVPDQDGYLVRUPD\UHTXLUHFKDQJHVLQWKHIRUPRI               KROGLQJ   WKDW     XQLYHUVLW\      UHTXLUHPHQW           WKDW   DOO    PDWHULDO    WR   EH


PDWHULDOVVXEPLWWHGE\VWXGHQWVEXWVXFKFKDQJHVPXVWGHDO          SXEOLVKHG LQ VWXGHQW QHZVSDSHU EH SUHYLHZHG E\ XQLYHUVLW\ DGPLQLVWUDWRUV



RQO\ ZLWK WKH IRUP RU WKH WLPH DQG PDQQHU RI H[SUHVVLRQV   YLRODWHG    VWXGHQWV
   ULJKWV    WR   IUHH   H[SUHVVLRQ          /LNHZLVH      ZH   QRWH   WKDW   D



UDWKHUWKDQDOWHUDWLRQRILWVFRQWHQW                              FROOHJH    \HDUERRN     ZLWK   IHDWXUHV       DNLQ   WR   D   XQLYHUVLW\

                                                                     PLJKW EH DQDO\]HG XQGHU D IUDPHZRUN RWKHU WKDQ WKH IRUXP IUDPHZRUN
                                                                                                                                                 VWXGHQW     QHZVSDSHU
    .LQFDLGHWDOY*LEVRQHWDO            1R      1R               .LQFDLGHWDOY*LEVRQHWDO     

FLUFXPVFULEHGlWKHJRYHUQPHQWPD\HQIRUFHFRQWHQWEDVHG                                     $SSHQGL[,
UHVWULFWLRQV RQO\ LI WKH\ DUH QDUURZO\ GUDZQ WR VHUYH D
FRPSHOOLQJ LQWHUHVW DQG PD\ HQIRUFH FRQWHQWQHXWUDO WLPH    6WXGHQW3XEOLFDWLRQV
SODFH DQG PDQQHU UHJXODWLRQV RQO\ LI WKH\ DUH mQDUURZO\      7KH %RDUG RI 5HJHQWV UHVSHFWV WKH LQWHJULW\ RI VWXGHQW
WDLORUHGWRVHUYHDVLJQLILFDQWJRYHUQPHQWLQWHUHVWDQGOHDYH      SXEOLFDWLRQV DQG WKH SUHVV DQG WKH ULJKWV WR H[LVW LQ DQ
RSHQDPSOHDOWHUQDWLYHFKDQQHOVRIFRPPXQLFDWLRQl,G7KH        DWPRVSKHUH RI IUHH DQG UHVSRQVLEOH GLVFXVVLRQ DQG RI
VHFRQGW\SHRIIRUXPKDVEHHQDOWHUQDWLYHO\GHVFULEHGDVD          LQWHOOHFWXDO H[SORUDWLRQ 7KH %RDUG H[SHFWV VWXGHQW HGLWRUV
mOLPLWHGSXEOLFIRUXPlVHH5RVHQEHUJHU86DW           DQGIDFXOW\DGYLVRUVWRDGKHUHWRKLJKVWDQGDUGVRIMRXUQDOLVWLF
DQG DV D mGHVLJQDWHG SXEOLF IRUXPl VHH $UNDQVDV (GXF      HWKLFVDQGWKHKLJKHVWOHYHORIJRRGWDVWHDQGPDWXULW\LQWKH
7HOHYLVLRQ&RPPjQY)RUEHV867KH         LQWHJULW\WRQHDQGFRQWHQWRIVWXGHQWSXEOLFDWLRQV
JRYHUQPHQWPD\RSHQDOLPLWHGSXEOLFIRUXPmIRUXVHE\WKH
SXEOLFDWODUJHIRUDVVHPEO\DQGVSHHFKIRUXVHE\FHUWDLQ         6WXGHQW3XEOLFDWLRQV%RDUG
VSHDNHUV RU IRU WKH GLVFXVVLRQ RI FHUWDLQ VXEMHFWVl          7KH 7KRUREUHG 1HZV 6WXGHQW 1HZVSDSHU DQG WKH
&RUQHOLXV86DW$OWKRXJKWKHJRYHUQPHQWQHHG           7KRUREUHG\HDUERRNVKDOOEHXQGHUWKHPDQDJHPHQWRIWKH
QRWUHWDLQWKHRSHQQDWXUHRIDOLPLWHGSXEOLFIRUXPmDVORQJ      6WXGHQW 3XEOLFDWLRQV %RDUG 7KRXJK ERWK SXEOLFDWLRQV DUH
DVLWGRHVVRLWLVERXQGE\WKHVDPHVWDQGDUGVDVDSSO\LQD       VXEVLGL]HGE\WKH8QLYHUVLW\LWLVWKHLQWHQWWKDWERWKVKDOOEH
WUDGLWLRQDOSXEOLFIRUXPl3HUU\86DW7KHWKLUG       DVIUHHRIFHQVRUVKLSDVSUHYDLOLQJODZGLFWDWHV
DQG ILQDO W\SH RI IRUXP LV D QRQSXEOLF IRUXP  7KH          7KH6WXGHQW3XEOLFDWLRQV%RDUGPHPEHUVKLSVKDOOFRQVLVW
JRYHUQPHQWPD\FRQWURODFFHVVWRDQRQSXEOLFIRUXPmEDVHG           RIWZRPHPEHUVRIWKHIDFXOW\RQHRIZKRPVKDOOVHUYHDV
RQ VXEMHFW PDWWHU DQG VSHDNHU LGHQWLW\ VR ORQJ DV WKH      FKDLUSHUVRQWKHHGLWRURIWKH7KRUREUHG1HZVWKHHGLWRURI
GLVWLQFWLRQV GUDZQ DUH UHDVRQDEOH LQ OLJKW RI WKH SXUSRVH   WKH7KRUREUHG<HDUERRNWZRVWXGHQWVWDIIPHPEHUVRWKHU
VHUYHGE\WKHIRUXPDQGDUHYLHZSRLQWQHXWUDOl&RUQHOLXV         WKDQWKHHGLWRUVRIWKH\HDUERRNDQGWKHQHZVSDSHUDQGWKH
86DWVHHDOVR3HUU\86DW                    IROORZLQJ H[RIILFLR >VLF@ PHPEHUV  9LFH 3UHVLGHQW IRU
                                                                    6WXGHQW$IIDLUV'LUHFWRURI6WXGHQW/LIH3UHVLGHQWRI6WXGHQW
   7KHSDUWLHVDJUHHWKDW7KH7KRUREUHGLVQRWDWUDGLWLRQDO        *RYHUQPHQW $VVRFLDWLRQ DQG WKH 6WXGHQW 3XEOLFDWLRQV
SXEOLFIRUXP7RGHWHUPLQHZKHWKHUWKH\HDUERRNLVDOLPLWHG       $GYLVRU  ([FHSW IRU WKRVH ZKR DUH H[RIILFLR >VLF@ DOO
SXEOLFIRUXPWKHWRXFKVWRQHRIRXUDQDO\VLVLVZKHWKHUWKH         PHPEHUVDQGWKHFKDLUSHUVRQDUHDSSRLQWHGE\WKH3UHVLGHQW
JRYHUQPHQW LQWHQGHG WR RSHQ WKH IRUXP DW LVVXH  6HH       RIWKH8QLYHUVLW\IRUDWHUPRIRQH\HDU$SSRLQWPHQWVDUH
&RUQHOLXV86DWDFFRUG)RUEHV86DW         PDGHGXULQJWKHVSULQJVHPHVWHUIRUWKHVXFFHHGLQJ\HDU
+D]HOZRRG  86 DW   7R GHWHUPLQH ZKHWKHU WKH
JRYHUQPHQW LQWHQGHG WR FUHDWH D OLPLWHG SXEOLF IRUXP ZH    7KH6WXGHQW3XEOLFDWLRQV%RDUGVKDOO
ORRNWRWKHJRYHUQPHQWjVSROLF\DQGSUDFWLFHZLWKUHVSHFWWR          $SSURYH WKH ZULWWHQ SXEOLFDWLRQV SROLF\ RI HDFK
WKHIRUXPDVZHOODVWRWKHQDWXUHRIWKHSURSHUW\DWLVVXHDQG          VWXGHQWSXEOLFDWLRQLQFOXGLQJVXFKLWHPVDVSXUSRVH
LWVmFRPSDWLELOLW\ZLWKH[SUHVVLYHDFWLYLW\l&RUQHOLXV             VL]HTXDQWLW\FRQWUROVDQGWLPHSODFHDQGPDQQHURI
DW)XUWKHUWKHFRQWH[WZLWKLQZKLFKWKHIRUXPLVIRXQG             GLVWULEXWLRQ
LVUHOHYDQWWRGHWHUPLQLQJZKHWKHUWKHJRYHUQPHQWKDVFUHDWHG
DOLPLWHGSXEOLFIRUXP6HHHJ)RUEHV86DW         6HW TXDOLILFDWLRQV IRU DQG XSRQ QRPLQDWLRQE\WKH
VWDWLQJ WKDW mWKH SXEOLF IRUXP GRFWULQH VKRXOG QRW EH             6WXGHQW 3XEOLFDWLRQV $GYLVRU DSSRLQW WKH HGLWRU RI
H[WHQGHGLQDPHFKDQLFDOZD\WRWKHYHU\GLIIHUHQWFRQWH[WRI              HDFKSXEOLFDWLRQZKRVKDOOVHUYHIRUDRQH\HDUWHUP
SXEOLFWHOHYLVLRQEURDGFDVWLQJl&RUQHOLXV86DW              XQOHVVUHDSSRLQWHGRUUHPRYHGE\WKH%RDUGIRUFDXVH
   .LQFDLGHWDOY*LEVRQHWDO          1R     1R                 .LQFDLGHWDOY*LEVRQHWDO           

MXGJPHQWLQIDYRURI.LQFDLGDQG&RIIHUDQGWRGHWHUPLQHWKH   VWDWLQJ WKDW &RXUW ZLOO QRW mLJQRUH WKH VSHFLDO QDWXUH DQG
UHOLHIWRZKLFKWKH\DUHHQWLWOHG                              IXQFWLRQRIWKHIHGHUDOZRUNSODFHLQHYDOXDWLQJWKHOLPLWVWKDW
                                                                PD\EHLPSRVHGRQDQRUJDQL]DWLRQjVULJKWWRSDUWLFLSDWHlLQ
                                                                IXQGUDLVLQJIRUXP(YDOXDWLQJWKHVHIDFWRUV.68jVSROLF\
                                                                DQG SUDFWLFH WKH QDWXUH RI 7KH 7KRUREUHG DQG LWV
                                                                FRPSDWLELOLW\ ZLWK H[SUHVVLYH DFWLYLW\ DQG WKH FRQWH[W LQ
                                                                ZKLFK WKH \HDUERRN LV IRXQG  ZH ILQG FOHDU HYLGHQFH RI
                                                                .68jVLQWHQWWRPDNHWKH\HDUERRNDOLPLWHGSXEOLFIRUXP
                                                                                              3ROLF\
                                                                   .68jVZULWWHQSROLF\WRZDUG7KH7KRUREUHGLVIRXQGLQD
                                                                VHFWLRQ RI WKH    VWXGHQW KDQGERRN HQWLWOHG m6WXGHQW
                                                                3XEOLFDWLRQVl,QDGGLWLRQWRVWDWLQJ.68jVSROLF\WRZDUG
                                                                WKH \HDUERRN WKH KDQGERRN GHVFULEHV WKH XQLYHUVLW\jV
                                                                VWUXFWXUH IRU RYHUVLJKW RI WKH SXEOLFDWLRQ  7KH \HDUERRN
                                                                DORQJZLWKWKHVWXGHQWQHZVSDSHULVmXQGHUWKHPDQDJHPHQW
                                                                RIWKH6WXGHQW3XEOLFDWLRQV%RDUGl7KH6WXGHQW3XEOLFDWLRQV
                                                                %RDUG m63%l LQ WXUQ LV FRPSRVHG    RI VWXGHQWV IDFXOW\
                                                                PHPEHUV DQG XQLYHUVLW\ RIILFLDOV  %RWK WKH XQLYHUVLW\jV
                                                                ZULWWHQ SROLF\ DQG WKH VWUXFWXUH LW FUHDWHG WR RYHUVHH WKH


                                                                    
                                                                     7KH 6WXGHQW 3XEOLFDWLRQV SROLF\ ZKLFK LV UHSURGXFHG LQ LWV HQWLUHW\
                                                                DW $SSHQGL[ , RI WKLV RSLQLRQ DOVR FRYHUV WKH   7KRUREUHG 1HZV    .68jV
                                                                VWXGHQW QHZVSDSHU   7KH QHZVSDSHU LV QRW DW LVVXH EHIRUH WKH HQ EDQF
                                                                SDQHO


                                                                    
                                                                     7KH UHOHYDQW SRUWLRQ RI WKH 6WXGHQW +DQGERRN VWDWHV


                                                                    7KH 6WXGHQW 3XEOLFDWLRQV %RDUG PHPEHUVKLS VKDOO FRQVLVW RI WZR
                                                                    PHPEHUV   RI WKH IDFXOW\ RQH RI ZKRP VKDOO VHUYH DV FKDLUSHUVRQ
                                                                    WKH HGLWRU RI WKH 7KRUREUHG 1HZV WKH HGLWRU RI WKH 7KRUREUHG
                                                                    <HDUERRN WZR VWXGHQW VWDII PHPEHUV RWKHU WKDQ WKH HGLWRUV RI
                                                                    WKH \HDUERRN DQG WKH QHZVSDSHU DQG WKH IROORZLQJ H[RIILFLR
                                                                    >VLF@ PHPEHUV  9LFH 3UHVLGHQW IRU 6WXGHQW $IIDLUV 'LUHFWRU RI
                                                                    6WXGHQW /LIH 3UHVLGHQW RI 6WXGHQW *RYHUQPHQW $VVRFLDWLRQ DQG
                                                                    WKH 6WXGHQW 3XEOLFDWLRQV $GYLVRU ([FHSW IRU WKRVH ZKR DUH
                                                                    H[RIILFLR >VLF@ DOO PHPEHUV DQG WKH FKDLUSHUVRQ DUH DSSRLQWHG E\
                                                                    WKH 3UHVLGHQW RI WKH 8QLYHUVLW\ IRU D WHUP RI RQH  \HDU
                                                                    $SSRLQWPHQWV DUH PDGH GXULQJ WKH VSULQJ VHPHVWHU IRU WKH
                                                                    VXFFHHGLQJ \HDU
       .LQFDLGHWDOY*LEVRQHWDO                  1R    1R                .LQFDLGHWDOY*LEVRQHWDO      

\HDUERRNHYLGHQFH.68jVLQWHQWLRQWKDWWKH\HDUERRNVHUYHDV               YLRODWHG WKH )LUVW $PHQGPHQW XQGHU D QRQSXEOLF IRUXP
DOLPLWHGSXEOLFIRUXP                                                  DQDO\VLV DV ZHOO DV D OLPLWHG SXEOLF IRUXP DQDO\VLV  6HH
                                                                           5RVHQEHUJHU86DWm7KHJRYHUQPHQWPXVWDEVWDLQ
  )LUVWDQGIRUHPRVWWKHSROLF\SODFHVHGLWRULDOFRQWURORIWKH           IURPUHJXODWLQJVSHHFKZKHQWKHVSHFLILFPRWLYDWLQJLGHRORJ\
\HDUERRNLQWKHKDQGVRIDVWXGHQWHGLWRURUHGLWRUV$OWKRXJK            RUWKHRSLQLRQRUSHUVSHFWLYHRIWKHVSHDNHULVWKHUDWLRQDOHIRU
WKH SROLF\ SURYLGHV IRU WKH HVWDEOLVKPHQW        RI PLQLPXP         WKHUHVWULFWLRQl
TXDOLILFDWLRQVIRUVWXGHQWHGLWRUVRQFHDVWXGHQWLVDSSRLQWHG
HGLWRUHGLWRULDOFRQWURORIWKH\HDUERRNjVFRQWHQWEHORQJVWR                                   ,9&21&/86,21
KHU  7KLV LV PDGH FOHDU E\ WKH SROLF\jV GHVFULSWLRQ RI WKH
6WXGHQW 3XEOLFDWLRQV $GYLVRU D XQLYHUVLW\ HPSOR\HH  7KH              7KHGLVWULFWFRXUWHUUHGE\JUDQWLQJVXPPDU\MXGJPHQWWR
SROLF\ GLUHFWV WKDW WKH 63% mVKDOO UHTXLUH WKH XVH RI DQ         WKHXQLYHUVLW\RIILFLDOVDQGGHQ\LQJLWWR.LQFDLGDQG&RIIHU
H[SHULHQFHG DGYLVRUl EXW OLPLWV WKH DGYLVRUjV UROH WR              EHFDXVHWKHUHFRUGFOHDUO\VKRZV.68jVLQWHQWWRGHVLJQDWH
mDVVXU>LQJ@ WKDW WKH    \HDUERRN LV QRW RYHUZKHOPHG E\        7KH7KRUREUHGDVDOLPLWHGSXEOLFIRUXP6SHFLILFDOO\WKH
LQHSWLWXGHDQGLQH[SHULHQFHl,QGHHGWKHSROLF\H[SUHVVO\                GLVWULFW FRXUW HUUHG LQ FRQFOXGLQJ WKDW WKH \HDUERRN ZDV D
OLPLWVWKHW\SHVRIFKDQJHVWKDWWKHDGYLVRUPD\PDNHWRWKH               QRQSXEOLFIRUXPRQWKHEDVLVWKDW.LQFDLGDQG&RIIHUmSXW
\HDUERRN                                                                  IRUWKQRHYLGHQFHWKDW7KH7KRUREUHGZDVLQWHQGHGWRUHDFK
                                                                           RU FRPPXQLFDWH ZLWK DQ\ERG\ EXW .68 VWXGHQWVl  7KLV
  ,QRUGHUWRPHHWWKHUHVSRQVLEOHVWDQGDUGVRIMRXUQDOLVP                UHDVRQLQJVLPSO\PLVDSSOLHVZHOOHVWDEOLVKHGSXEOLFIRUXP
  DQDGYLVRUPD\UHTXLUHFKDQJHVLQWKHIRUPRIPDWHULDOV                  ODZ7KHGLVWULFWFRXUWIXUWKHUHUUHGLQFRQFOXGLQJWKDWmWKH
  VXEPLWWHGE\VWXGHQWVEXWVXFKFKDQJHVPXVWGHDORQO\                   \HDUERRNZDVQRWLQWHQGHGWREHDMRXUQDORIH[SUHVVLRQDQG
  ZLWK WKH IRUP RU WKH WLPH DQG PDQQHU RI H[SUHVVLRQV             FRPPXQLFDWLRQLQDSXEOLFIRUXPVHQVHEXWLQVWHDGWREHD
  UDWKHUWKDQDOWHUDWLRQRIFRQWHQW                                      MRXUQDO RI WKH µJRLQJV RQj LQ >D@ SDUWLFXODU \HDU DW .68l
                                                                           *LYHQ.68jVVWDWHGSROLF\ DQG SUDFWLFHZLWKUHJDUGWRWKH
6HH$SS,HPSKDVLVDGGHG7KLVODQJXDJHLVUHYHDOLQJQRW             \HDUERRN WKH QDWXUH RI WKH \HDUERRN DQG LWV FRPSDWLELOLW\
RQO\GRHVLWGLUHFWWKHXQLYHUVLW\jVFKRVHQDGYLVRUWRUHIUDLQ             ZLWKH[SUHVVLYHDFWLYLW\DQGWKHXQLYHUVLW\FRQWH[WLQZKLFK
IURPHGLWLQJWKHFRQWHQWRIWKH\HDUERRNLWDOVRWUDFNVWKH               WKH\HDUERRNLVSXEOLVKHGWKHUHFDQEHQRTXHVWLRQWKDW7KH
6XSUHPH&RXUWjVGHVFULSWLRQRIWKHOLPLWDWLRQVRQJRYHUQPHQW               7KRUREUHGLVDmMRXUQDORIH[SUHVVLRQDQGFRPPXQLFDWLRQLQ
UHJXODWLRQRIH[SUHVVLYHDFWLYLW\LQDOLPLWHGSXEOLFIRUXP               WKHSXEOLFIRUXPVHQVHl7KHXQLYHUVLW\jVFRQILVFDWLRQRIWKLV
6HH 3HUU\  86 DW  m5HDVRQDEOH WLPH SODFH DQG            MRXUQDO RI H[SUHVVLRQ ZDV DUELWUDU\ DQG XQUHDVRQDEOH  $V
PDQQHU UHJXODWLRQV DUH SHUPLVVLEOH DQG D FRQWHQWEDVHG              VXFK LW YLRODWHG .LQFDLGjV DQG &RIIHUjV )LUVW $PHQGPHQW
                                                                           ULJKWV
     
      7KH KDQGERRN VWDWHV
                                                                             ,Q OLJKW RI WKH FOHDUO\ HVWDEOLVKHG FRQWRXUV RI WKH SXEOLF
                                                                           IRUXPGRFWULQHDQGWKHVXEVWDQWLDOO\GHYHORSHGIDFWXDOUHFRUG
     7KH 6WXGHQW 3XEOLFDWLRQV %RDUG VKDOO    >V@HW TXDOLILFDWLRQV IRU   LQWKLVFDVHWKHGLVWULFWFRXUWVKRXOGKDYHGHQLHGWKH.68
     DQG XSRQ QRPLQDWLRQ E\ WKH 6WXGHQW 3XEOLFDWLRQV $GYLVRU            RIILFLDOVj PRWLRQ IRU VXPPDU\ MXGJPHQW DQG JUDQWHG
     DSSRLQW WKH HGLWRU RI HDFK SXEOLFDWLRQ ZKR VKDOO VHUYH IRU D          .LQFDLGjV DQG &RIIHUjV VXPPDU\ MXGJPHQW PRWLRQ
     RQH\HDU WHUP XQOHVV UHDSSRLQWHG RU UHPRYHG E\ WKH %RDUG IRU
     FDXVH     ,Q VHWWLQJ TXDOLILFDWLRQV IRU WKH HGLWRUV RI WKH
                                                                           $FFRUGLQJO\ ZH 5(9(56( WKH MXGJPHQW RI WKH GLVWULFW
     QHZVSDSHU DQG \HDUERRN WKH %RDUG VKDOO LQFOXGH D VXIILFLHQWO\
                                                                           FRXUW DQG 5(0$1' WKH FDVH ZLWK LQVWUXFWLRQV WR HQWHU
     KLJK DFDGHPLF DYHUDJH RU WKH VXFFHVVIXO FRPSOHWLRQ RI D EDVLF
     MRXUQDOLVP FRXUVH RU ERWK
     .LQFDLGHWDOY*LEVRQHWDO                   1R        1R                  .LQFDLGHWDOY*LEVRQHWDO         

FRQWHQWLRXVWKHPHDQGSLFNRXWLWVDOOHJHGO\VFDQGDORXVFRYHU                SURKLELWLRQ PXVW EH QDUURZO\ GUDZQ WR HIIHFWXDWH D
)LQDOO\WKHXQLYHUVLW\UHOHDVHGWKHVXEVHTXHQWLH               FRPSHOOLQJVWDWHLQWHUHVWl.68jVLQWHQWWROLPLW LWVRZQ
\HDUERRN GHVSLWH WKH IDFW WKDW LW ZDV LQ *LEVRQjV RZQ              RYHUVLJKWWRWLPHSODFHDQGPDQQHUDVSHFWVRIWKH\HDUERRN
HVWLPDWLRQRQO\mDWDGEHWWHUWKDQWKHSUHYLRXVRQHlLHWKH              LVDOVRVHHQLQWKHSROLF\jVWUHDWPHQWRIWKH63%7KHSROLF\
\HDUERRNDWLVVXHLQWKLVFDVH7KHVHIDFWVVKRZZLWKRXW                   GHFODUHVWKDWRQHRIWKHGXWLHVRIWKH63%LVWRm>D@SSURYHWKH
GRXEWWKDWWKHXQLYHUVLW\jVFRQILVFDWLRQRIWKH\HDUERRNVZDV                 ZULWWHQ SXEOLFDWLRQV SROLF\ RI HDFK VWXGHQW SXEOLFDWLRQ
DQ\WKLQJEXWUHDVRQDEOHUDWKHULWZDVDUDVKDUELWUDU\DFW               LQFOXGLQJVXFKLWHPVDVSXUSRVHVL]HTXDQWLW\FRQWUROVDQG
ZKROO\ RXW RI SURSRUWLRQ WR WKH VLWXDWLRQ LW ZDV DOOHJHGO\           WLPH SODFH DQG PDQQHU RI GLVWULEXWLRQl  7KLV ODQJXDJH
LQWHQGHGWRDGGUHVV                                                         UHLWHUDWHVWKHXQLYHUVLW\jVLQWHQWWROLPLWLWVRYHUVLJKWRIWKH
                                                                              \HDUERRNWRJHQHUDODQGDGPLQLVWUDWLYHPDWWHUVDQGWRFHGH
  :HQRWHWKDW.68jVVXSSUHVVLRQRIWKH\HDUERRNVPDFNVRI                    DXWKRULW\ RYHU WKH \HDUERRNjV FRQWHQW WR WKH VWXGHQWV ZKR
YLHZSRLQW GLVFULPLQDWLRQ DV ZHOO 7KH XQLYHUVLW\ RIILFLDOV              SXEOLVKHG LW  )LQDOO\ WKH SXEOLFDWLRQV SROLF\ RSHQV ZLWK
EDVHG WKHLU FRQILVFDWLRQ RI WKH \HDUERRN LQ SDUW XSRQ WKH            ODQJXDJHWKDWLQGLFDWHVWKDWWKHH[SUHVVLYHDFWLYLW\FRQWDLQHG
SDUWLFXODUWKHPHFKRVHQE\&RIIHUmGHVWLQDWLRQXQNQRZQl                     LQVWXGHQWSXEOLFDWLRQVLVWREHODUJHO\XQUHVWUDLQHGm7KH
&RIIHUFKDUDFWHUL]HGWKDWWKHPHZKLFKVKHGHVFULEHGLQWKH                   %RDUGRI5HJHQWVUHVSHFWVWKHLQWHJULW\RIVWXGHQWSXEOLFDWLRQV
\HDUERRNLWVHOIDVmP\RSLQLRQDVDVWXGHQWUHJDUGLQJWKH              DQGWKHSUHVVDQGWKHULJKWVWRH[LVWLQDQDWPRVSKHUHRIIUHH
RYHUDOOVWXGHQWSRSXODWLRQl&RIIHUjVFKRLFHRIWKHPHLVD                   DQGUHVSRQVLEOHGLVFXVVLRQDQGRILQWHOOHFWXDOH[SORUDWLRQl
FODVVLF LOOXVWUDWLRQ RI ZKDW ZH PHDQ ZKHQ ZH UHIHU WR D             6XFK VHOILPSRVHG UHVWUDLQW LV VWURQJ HYLGHQFH RI .68jV
VSHDNHUjV mYLHZSRLQWl7KHXQLYHUVLW\RIILFLDOVDOVREDVHG                  LQWHQWWRFUHDWHDOLPLWHGSXEOLFIRUXPUDWKHUWKDQWRUHVHUYH
WKHLUFRQILVFDWLRQRIWKH\HDUERRNVRQWKHIDFWWKDWWKHVRPH                 WR LWVHOI WKH ULJKW WR HGLW RU GHWHUPLQH 7KH 7KRUREUHGjV
RI LWV SLFWXUHV FDSWXUHG SDUWLFXODU ZHOONQRZQ LQGLYLGXDOV             FRQWHQW
ZKRPWKH\GHHPHGWREHRXWRISODFHLQDVWXGHQW\HDUERRN
.LQFDLGVXPPDUL]HGWKHEDVLFSUHPLVHRI)LUVW$PHQGPHQW                         7KH.68RIILFLDOVDUJXHWKDWWKHKDQGERRNSROLF\VKRZV
YLHZSRLQWMXULVSUXGHQFHZKHQKHWHVWLILHGm>D@SLFWXUHWKDW                  WKHXQLYHUVLW\jVLQWHQWWRUHWDLQUDWKHUWKDQUHOLQTXLVKFRQWURO
PD\ EH UHOHYDQW WR PH PD\ EH VRPHWKLQJ WKDW ZRXOG EH                RYHUWKH\HDUERRNjVFRQWHQW7KH\SRLQWLQSDUWLFXODUWRWKH
JDUEDJHWR\RXl:HPLJKWDGGWKDWLQDWUDGLWLRQDOOLPLWHG                IDFWWKDWWKHSROLF\UHTXLUHVDGLVFODLPHUWREHSODFHGRQWKH
RU QRQSXEOLF IRUXP VWDWH RIILFLDOV PD\ QRW H[SXQJH HYHQ              VWXGHQWQHZVSDSHUEXWQRWRQWKH\HDUERRNDVHYLGHQFH
mJDUEDJHlLILWUHSUHVHQWVDVSHDNHUjVYLHZSRLQW6HH3HUU\                 RIWKHXQLYHUVLW\jVLQWHQWWRUHWDLQFRQWURORYHUWKHFRQWHQWRI
 86 DW   )LQDOO\ WKH \HDUERRN FRQWDLQHG ZULWWHQ             WKH \HDUERRN  6XFK UHDVRQLQJ UHOLHV XSRQ D QHJDWLYH
VHJPHQWVZKLFK&RIIHUGHVFULEHGDVVWDWLQJKHURSLQLRQVRQ
YDULRXVPDWWHUV%HFDXVHWKHJRYHUQPHQWPD\QRWUHJXODWH
HYHQDQRQSXEOLFIRUXPEDVHGXSRQWKHVSHDNHUjVYLHZSRLQW                        
VHHLGDQGEHFDXVHDQHGLWRUjVFKRLFHRIWKHPHVHOHFWLRQRI                       $W WKH WLPH RI WKH HYHQWV JLYLQJ ULVH WR WKH LQVWDQW FDVH WKHUH ZDV
SDUWLFXODU SLFWXUHV DQG H[SUHVVLRQ RI RSLQLRQV DUH FOHDU              QR SXEOLFDWLRQV SROLF\ ZULWWHQ VSHFLILFDOO\ IRU WKH \HDUERRN $OWKRXJK WKH
                                                                              SDUWLHV LQFOXGHG D GUDIW RI VXFK D SROLF\ LQ WKH sRLQW $SSHQGL[ WKH\ DJUHH
H[DPSOHVRIWKHHGLWRUjVYLHZSRLQWWKH.68RIILFLDOVjDFWLRQV                WKDW WKH GUDIW KDV QR UHOHYDQFH WR WKLV FDVH EHFDXVH LW ZDV SURGXFHG DIWHU
                                                                              WKH HYHQWV DW LVVXH

                                                                                
       &XOOHQ DOVR LQGLFDWHG WKDW WKH  \HDUERRN ZDV QRW PDWHULDOO\            7KH UHOHYDQW SRUWLRQ RI WKH KDQGERRN UHDGV
GLIIHUHQW LQ TXDOLW\ IURP RWKHU \HDUERRNV mWKH WKLQJV WKDW ZHUH VDLG DERXW
WKH >@ \HDUERRN WKLV SDUWLFXODU ERRN WKDW ZDV FRQILVFDWHG LV >VLF@       6LQFH WKH 7KRUREUHG 1HZV LV QRW DQ RIILFLDO RUJDQ RI WKH
QRWKLQJ QHZ RU XQLTXH WR DQ\ RWKHU \HDUERRN 7KH\ DOO KDYH SUREOHPVl             8QLYHUVLW\ WKH 6WXGHQW 3XEOLFDWLRQ>V@ %RDUG VKDOO FDXVH WR EH
     .LQFDLGHWDOY*LEVRQHWDO                   1R     1R                 .LQFDLGHWDOY*LEVRQHWDO        

LQIHUHQFH  LQ RWKHU ZRUGV WKH IDFW WKDW WKH SROLF\ IDLOV WR   \HDUl7KHRIILFLDOVWKHQDUJXHWKDWEHFDXVHWKH\HDUERRN
UHTXLUH D GLVFODLPHU WR EH SODFHG XSRQ WKH \HDUERRN                ZDVRQO\SDJHVDERXWKDOILWVLQWHQGHGOHQJWKDQG
SXUSRUWHGO\LPSOLHVWKDWWKH\HDUERRNLVmDQµRIILFLDOjRUJDQ              FRQWDLQHGSLFWXUHVWKDWODFNHGFDSWLRQVLWIDLOHGWRIXOILOOLWV
RI WKH 8QLYHUVLW\l EHFDXVH WKH XQLYHUVLW\ UHTXLUHV D               SXUSRVH%HFDXVHWKH\HDUERRNIDLOHGWRIXOILOOLWVLQWHQGHG
GLVFODLPHURQWKHQHZVSDSHUDQGWKHQHZVSDSHULVQRWVXFK                 SXUSRVHWKHDUJXPHQWJRHVWKHXQLYHUVLW\jVFRQILVFDWLRQRI
DQ RIILFLDO RUJDQ  7KLV LV KDUGO\ SHUVXDVLYH  :HUH ZH WR      WKH \HDUERRNV ZDV UHDVRQDEOH  7KH XQLYHUVLW\ RIILFLDOV
IROORZ WKH ORJLF EHKLQG WKLV FRQFOXVLRQ ZH PXVW DOVR              DFNQRZOHGJHKRZHYHUWKDW&RIIHUH[SODLQHGHOVHZKHUHLQ
FRQFOXGH WKDW WKH XQLYHUVLW\ KDV IRUJRQH DOO VWDQGDUGV RI          KHU WHVWLPRQ\ WKDW WKH \HDUERRN ZDV LQWHQGHG WR EH mD
TXDOLW\FRQWUROZLWKUHODWLRQWRWKH\HDUERRN$IWHUDOOWKH             FROOHFWLRQRISLFWXUHVWKDWGHSLFWHGZKDWZHQWRQDW.HQWXFN\
SXEOLFDWLRQV SROLF\ VWDWHV PLQLPXP VWDQGDUGV RI TXDOLW\              6WDWH8QLYHUVLW\DURXQGWKHFRPPXQLW\WKDW.HQWXFN\6WDWH
FRQWUROIRUWKHQHZVSDSHUEXWQRQHIRUWKH\HDUERRN<HW               8QLYHUVLW\ VHW LQ WKH VWDWH DQG WKH ZRUOGl  7KHUH LV QR
WR FRQFHGH WKDW ZRXOG UHTXLUH WKH XQLYHUVLW\ RIILFLDOV WR          GLVSXWHWKDWWKH\HDUERRNLQFOXGHGSLFWXUHVRIDZLGHUDQJHRI
FRQFHGHWKHLUHQWLUHDUJXPHQW*LEVRQDUJXHVRQDSSHDOWKDW              LQGLYLGXDOVDQGHYHQWV,QGHHGRQHRI*LEVRQjVPDLQJULSHV
WKH EDVLV IRU FRQILVFDWLQJ WKH \HDUERRNV LV WKHLU DOOHJHGO\        ZLWK WKH \HDUERRN ZDV WKDW LW LQFOXGHG SLFWXUHV RI FXUUHQW
mSRRU TXDOLW\l  5DWKHU WKDQ HQJDJH LQ VXFK LQIHUHQWLDO            HYHQWV DQG FHOHEULWLHV DQG m>Q@XPHURXV SLFWXUHV    RI 5RVV
J\PQDVWLFV ZH UHDG WKH XQLYHUVLW\jV SROLF\ LQ D                    3HURW%LOO&OLQWRQWKH3RSHDQGORWVRISHRSOHl7KXVWKH
VWUDLJKWIRUZDUGPDQQHU)RUWKHUHDVRQVGLVFXVVHGVXSUD                 \HDUERRNDSSHDUVWRKDYHIXOILOOHGWKHSXUSRVHH[SUHVVHGE\
.68jVSROLF\OHDYHVURRPIRURQO\RQHFRQFOXVLRQWKDWWKH                LWVHGLWRU
XQLYHUVLW\LQWHQGHGWRRSHQWKH\HDUERRNDVDOLPLWHGSXEOLF
IRUXP                                                                       0RUH LPSRUWDQW WKH .68 RIILFLDOVj DFWLRQV ZHUH QRW
                                                                           UHDVRQDEOHEHFDXVHWKH\ZHUHDUELWUDU\DQGFRQIOLFWHGZLWKWKH
                                                                           XQLYHUVLW\jVRZQVWDWHGSROLF\7KHXQLYHUVLW\jVSXEOLFDWLRQV
                                                                           SROLF\VWDWHVWKDWmWKH7KRUREUHG\HDUERRNVKDOOEHXQGHUWKH
                                                                           PDQDJHPHQWRIWKH6WXGHQW3XEOLFDWLRQV%RDUGl<HW7KRPDV
     LQVHUWHG LQ WKH PDVWKHDG D VWDQGLQJ DQG GLVWLQFW GLVFODLPHU           WHVWLILHGWKDWQHLWKHU*LEVRQQRUDQ\RWKHU.68DGPLQLVWUDWRUV
     LQGLFDWLQJ WKDW WKH YLHZV H[SUHVVHG DUH QRW QHFHVVDULO\ WKRVH RI      GLVFXVVHG ZLWK WKH 63% WKH GUDVWLF DFW RI FRQILVFDWLQJ WKH
     WKH 8QLYHUVLW\ EXW UDWKHU DUH WKRVH RI WKH QDPHG VWXGHQW DXWKRU     \HDUERRNV)XUWKHUWKHXQLYHUVLW\jVSROLF\JDYHWR&XOOHQWKH
     HGLWRU RU ERDUG RI HGLWRUV                                           SRZHUWRmUHTXLUHFKDQJHVLQWKHIRUPRIPDWHULDOVVXEPLWWHG
                                                                           E\VWXGHQWV>WKDW@GHDOZLWKWKHIRUPRUWKHWLPHDQG
TXRWDWLRQ PDUNV LQ RULJLQDO
                                                                           PDQQHURIH[SUHVVLRQVl<HWWKH.68RIILFLDOVQHYHUHYHQ
                                                                         FRQVXOWHG&XOOHQWKHVWXGHQWSXEOLFDWLRQVDGYLVRUEHIRUHWKH\
       7KH KDQGERRN VWDWHV
                                                                           VHL]HGWKH\HDUERRNV,QIDFW&RIIHUWHVWLILHGWKDW&XOOHQKDG
         ,Q VXEVLGL]LQJ WKH 7KRUREUHG 1HZV WKURXJK WKH 6WXGHQW             KHOSHG KHU FRPH XS ZLWK WKH \HDUERRNjV DSSDUHQWO\
     3XEOLFDWLRQV %RDUG WKH 8QLYHUVLW\ H[SHFWV WKH QHZVSDSHU WR
     PDLQWDLQ DW OHDVW WKHVH WZR VWDQGDUGV RI TXDOLW\ FRQWURO
                                                                               
             5HSRUW DFFXUDWHO\ DQG IDLUO\ QHZVZRUWK\ FDPSXV                    &RIIHU LPPHGLDWHO\ FODULILHG KHU VWDWHPHQW m:HOO WKH   89:/0398
                                                                           SURYLGH >WKH \HDUERRN@ WKURXJK WKH XQLYHUVLW\l HPSKDVLV DGGHG
               HYHQWV DQG
                                                                               
             3XUVXH LPSRUWDQW QHZV HYHQWV WR PDNH VXUH WKH\ DUH                 &RIIHU WHVWLILHG WKDW VKH LQFOXGHG SLFWXUHV RI FXUUHQW HYHQWV DQG
               UHSRUWHG DQG FRPPHQWHG XSRQ RQ WKH HGLWRULDO SDJHV          FHOHEULWLHV EHFDXVH mWKRVH ZHUH VRPH RI WKH PDMRU SHRSOH DQG    PDMRU
               ZLWK FRPSUHKHQVLRQ DQG IXOO XQGHUVWDQGLQJ RI WKH IDFWV     HYHQWV WKDW ZHUH KDSSHQLQJ GXULQJ WKDW WLPHl
    .LQFDLGHWDOY*LEVRQHWDO                1R       1R                 .LQFDLGHWDOY*LEVRQHWDO       

VKRXOG KDYH EHHQ DQG LW ZDVQjW ZKDW RWKHU SHRSOH ZKR                                       3UDFWLFH
YLHZHG LW WKRXJKW LW VKRXOG KDYH EHHQl  $QG DIWHU WKH
\HDUERRNVFDPHEDFNIURPWKHSULQWHU*LEVRQFRPSODLQHGWR                  ,Q DGGLWLRQ WR H[DPLQLQJ .68jV VWDWHG SROLF\ ZH PXVW
&XOOHQWKDWm>V@HYHUDOSHUVRQVKDYHUHFHLYHGWKHERRNDQGDUH           H[DPLQHWKHXQLYHUVLW\jVDFWXDOSUDFWLFHWRGHWHUPLQHZKHWKHU
WKRURXJKO\GLVDSSRLQWHGDWWKHTXDOLW\DQGFRQWHQWl7KXVLW           LW WUXO\ LQWHQGHG WR FUHDWH D OLPLWHG SXEOLF IRUXP LQ 7KH
LVTXLWHFOHDUWKDW*LEVRQDWWHPSWHGWRUHJXODWHWKHFRQWHQWRI          7KRUREUHG  ,QGHHG ZH KDYH QRWHG WKDW mµDFWXDO SUDFWLFH
7KH7KRUREUHGRQFHLWZDVSULQWHG                                      VSHDNV ORXGHU WKDQ ZRUGVjl LQ GHWHUPLQLQJ ZKHWKHU WKH
                                                                         JRYHUQPHQWLQWHQGHGWRFUHDWHDOLPLWHGSXEOLFIRUXP6HH
   7KH RIILFLDOVj DUJXPHQW DOVR IDLOV EHFDXVH WKH\ KDYH LQ      8)&:8)GDWTXRWLQJ*UDFH%LEOH)HOORZVKLS
HIIHFWDOWHUHG7KH7KRUREUHG&RQILVFDWLRQUDQNVZLWKIRUFHG           ,QFY0DLQH6FK$GPLQ'LVW1R)GVW
JRYHUQPHQWVSHHFKDVDPRQJVWWKHSXUHVWIRUPVRIFRQWHQW                 &LU   7KH UHFRUG EHIRUH XV FRQWDLQV VXEVWDQWLDO
DOWHUDWLRQ  7KHUH LV OLWWOH LI DQ\ GLIIHUHQFH EHWZHHQ KLGLQJ   HYLGHQFHIURPYDULHGVRXUFHVWKDWWKH63%IROORZHGLWVVWDWHG
IURP SXEOLF YLHZ WKH ZRUGV DQG SLFWXUHV VWXGHQWV XVH WR         mKDQGVRIIlSROLF\LQDFWXDOSUDFWLFH&RIIHUWHVWLILHGZLWKRXW
SRUWUD\ WKHLU FROOHJH H[SHULHQFH DQG IRUFLQJ VWXGHQWV WR         FRQWUDGLFWLRQ WKDW 9LFH 3UHVLGHQW *LEVRQ  ZKR &RIIHU
SXEOLVK D VWDWHVSRQVRUHG VFULSW  ,Q HLWKHU FDVH WKH           GHVFULEHGDVDmIULHQG>@lZLWKZKRPVKHZDVmRQH[FHOOHQW
JRYHUQPHQWDOWHUVVWXGHQWH[SUHVVLRQE\REOLWHUDWLQJLW:H             WHUPVl  mQHYHU H[SUHVVHG DQ\ FRQFHUQ DERXW ZKDW WKH
ZLOO QRW VDQFWLRQ D UHDGLQJ RI WKH )LUVW $PHQGPHQW WKDW         FRQWHQWPLJKWEHLQWKH\HDUERRNlSULRUWRLWVSXEOLFDWLRQEXW
SHUPLWVJRYHUQPHQWRIILFLDOVWRFHQVRUH[SUHVVLRQLQDOLPLWHG           UDWKHU OLPLWHG KHU FRQFHUQV WR WKH \HDUERRNjV UHOHDVH GDWH
SXEOLF IRUXP LQ RUGHU WR FRHUFH VSHHFK WKDW SOHDVHV WKH         1RUGLGWKH63%H[HUFLVHRYHUVLJKWRIWKH\HDUERRNjVFRQWHQW
JRYHUQPHQW7KH.68RIILFLDOVSUHVHQWQRFRPSHOOLQJUHDVRQ              /DXUDsR&XOOHQWKHXQLYHUVLW\jVSXEOLFDWLRQVDGYLVRUWRWKH
WRQXOOLI\&RIIHUjVH[SUHVVLRQRUWRVKLHOGLWIURP.LQFDLGjV            \HDUERRNDQGDQH[RIILFLRPHPEHURIWKH63%WHVWLILHGWKDW
YLHZ DQG DFFRUGLQJO\ WKH RIILFLDOVj DFWLRQV YLRODWH WKH         WKH63%OLPLWHGLWVRYHUVLJKWRIWKH\HDUERRNWRLVVXHVVXFKDV
&RQVWLWXWLRQ6HH3HUU\86DW                                DGYHUWLVLQJUDWHVDQGVHOHFWLRQRIHGLWRUVDQGWKDWLQWKHWLPH
                                                                         GXULQJZKLFKVKHKDGEHHQDVVRFLDWHGZLWKWKH\HDUERRN
   (YHQZHUHZHWRDVVXPHDVWKH.68RIILFLDOVDUJXHWKDW              WKH%RDUGKDGQHYHUDWWHPSWHGWRFRQWUROWKHFRQWHQWRIWKH
WKH \HDUERRN ZDV D QRQSXEOLF IRUXP FRQILVFDWLRQ RI WKH          \HDUERRN/HVOLH7KRPDV.68jV'LUHFWRURI6WXGHQW/LIH
\HDUERRN ZRXOG VWLOO YLRODWH .LQFDLGjV DQG &RIIHUjV IUHH          DQG DQRWKHU PHPEHU RI WKH 63% WHVWLILHG WKDW WKH 63%
VSHHFKULJKWV$OWKRXJKWKHJRYHUQPHQWPD\DFWWRSUHVHUYH              H[HUFLVHG PLQLPDO RYHUVLJKW RI WKH \HDUERRN LQ DFWXDO
DQRQSXEOLFIRUXPIRULWVLQWHQGHGSXUSRVHVLWVUHJXODWLRQRI           SUDFWLFHm:HMXVWDOZD\VGHDOWZLWKWKHQHZVSDSHUVR,JXHVV
VSHHFK PXVW QRQHWKHOHVV EH UHDVRQDEOH DQG LW PXVW QRW           WKDWZDVWKHPDMRUIRFXVl7KRPDVDOVRWHVWLILHGWKDWLWZDV
DWWHPSW WR VXSSUHVV H[SUHVVLRQ EDVHG RQ WKH VSHDNHUjV             WKHVWXGHQWHGLWRUUDWKHUWKDQWKH63%ZKRGHWHUPLQHGWKH
YLHZSRLQW6HH3HUU\86DW7KHDFWLRQVWDNHQE\            FRQWHQWRIWKH\HDUERRN7KXVWKHUHFRUGEHIRUHXVLVFOHDU
WKH.68RIILFLDOVIDLOXQGHUHYHQWKLVUHOD[HGVWDQGDUG               WKDWLQDFWXDOSUDFWLFHVWXGHQWHGLWRUVQRW.68RIILFLDOV
                                                                         QRW WKH VWXGHQW SXEOLFDWLRQV DGYLVRU DQG QRW WKH 63% 
  ,Q DUJXLQJ WKDW WKHLU FRQILVFDWLRQ RI WKH \HDUERRN ZDV         GHWHUPLQHGWKHFRQWHQWRI.68jVVWXGHQW\HDUERRN
UHDVRQDEOH WR SUHVHUYH WKH IRUXPjV SXUSRVH VHH LG WKH
RIILFLDOVDGRSWDSRUWLRQRI&RIIHUjVWHVWLPRQ\DVDVWDWHPHQW
RIWKH\HDUERRNjVSXUSRVHm,WjVVRPHWKLQJWKDWWKHXQLYHUVLW\              
                                                                                &XOOHQjV WHQXUH DV SXEOLFDWLRQV DGYLVRU WR WKH \HDUERRN LQFOXGHG
SURYLGHVDVDUHFRUGIRUWKDW\HDUDSLFWRULDOUHFRUGIRUWKDW          WKH HQWLUH SHULRG DW LVVXH LQ WKLV FDVH IURP sDQXDU\  WR 1RYHPEHU
                                                                          &XOOHQ UHVLJQHG IURP .68 LQ sXO\  6HH &XOOHQ Y *LEVRQ
                                                                         1R   :/  WK &LU 6HSW  
      .LQFDLGHWDOY*LEVRQHWDO                     1R            1R                .LQFDLGHWDOY*LEVRQHWDO       

       1DWXUHRIWKH3URSHUW\DQG&RPSDWLELOLW\ZLWK                             FDPSXVDQHZVSDSHUFRQWDLQLQJLQGHFHQWVSHHFKYLRODWHG)LUVW
                       ([SUHVVLYH$FWLYLW\                                           $PHQGPHQW EHFDXVH VKH mZDV H[SHOOHG EHFDXVH RI WKH
                                                                                     GLVDSSURYHGFRQWHQWRIWKHQHZVSDSHUUDWKHUWKDQWKHWLPH
   ,Q DGGLWLRQ WR WKH XQLYHUVLW\jV SROLF\ DQG SUDFWLFH DQ                   SODFH RU PDQQHU RI LWV GLVWULEXWLRQl  LWDOLFV LQ RULJLQDO
H[DPLQDWLRQ RI WKH QDWXUH RI WKH IRUXP DW LVVXH DQG LWV                    IRRWQRWH RPLWWHG 1RU LV LW D QDUURZO\ FUDIWHG UHJXODWLRQ
FRPSDWLELOLW\ZLWKH[SUHVVLYHDFWLYLW\IXUWKHULQGLFDWHVWKDW                        GHVLJQHGWRSUHVHUYHDFRPSHOOLQJVWDWHLQWHUHVW6HH3HUU\
.68LQWHQGHGWRRSHQ7KH7KRUREUHGWRWKHVWXGHQWHGLWRUV                             86 DW   5DWKHU ZKROHVDOH FRQILVFDWLRQ RI SULQWHG
DVDOLPLWHGSXEOLFIRUXP7KH.68\HDUERRNLVDVWXGHQW                            PDWHULDOVZKLFKWKHVWDWHIHHOVUHIOHFWSRRUO\RQLWVLQVWLWXWLRQV
SXEOLFDWLRQWKDWE\LWVYHU\QDWXUHH[LVWVIRUWKHSXUSRVHRI                      LVDVEURDGO\VZHHSLQJDUHJXODWLRQDVWKHVWDWHPLJKWPXVWHU
H[SUHVVLYHDFWLYLW\7KHUHFDQEHQRVHULRXVDUJXPHQWDERXW                         )XUWKHU WKH XQLYHUVLW\ RIILFLDOVj DFWLRQ OHDYHV RSHQ QR
WKHIDFWWKDWLQLWVPRVWEDVLFIRUPWKH\HDUERRNVHUYHVDVD                      DOWHUQDWLYHJURXQGVIRUVLPLODUH[SUHVVLYHDFWLYLW\6HHLGDW
IRUXPLQZKLFKVWXGHQWHGLWRUVSUHVHQWSLFWXUHVFDSWLRQVDQG                       7KHUHFRUGFRQWDLQVQRRWKHUVWXGHQWIRUXPIRUUHFRUGLQJ
RWKHU ZULWWHQ PDWHULDO DQG WKDW WKHVH PDWHULDOV FRQVWLWXWH                   ZRUGVDQGSLFWXUHVWRUHIOHFWWKHH[SHULHQFHRI.68VWXGHQWV
H[SUHVVLRQ IRU SXUSRVHV RI WKH )LUVW $PHQGPHQW  $V D                       GXULQJ WKH  WKURXJK  VFKRRO \HDUV  ,QGHHG WKH
FUHDWLYHSXEOLFDWLRQWKH\HDUERRNLVHDVLO\GLVWLQJXLVKHGIURP                      OLNHOLKRRGRIWKHH[LVWHQFHRIDQ\VXFKDOWHUQDWLYHIRUXPDW
RWKHUJRYHUQPHQWIRUDZKRVHQDWXUHVDUHQRWVRFRPSDWLEOH                            WKLVODWHGDWHZKHQYLUWXDOO\DOORIWKHVWXGHQWVZKRZHUHDW
ZLWKIUHHH[SUHVVLRQ6HHHJ&RUQHOLXV86DW                         .68 LQ WKH HDUO\ V ZLOO KDYH VXUHO\ PRYHG RQ LV
ILQGLQJWKDWQDWXUHRIJRYHUQPHQWSURSHUW\DWLVVXHLQGLFDWHV                       H[WUDRUGLQDULO\ VOLP  $FFRUGLQJO\ WKH .68 RIILFLDOVj
WKDW IXQGUDLVLQJ IRUXP LQ IHGHUDO ZRUNSODFH LV QRQSXEOLF                      FRQILVFDWLRQRIWKH\HDUERRNVYLRODWHVWKH)LUVW$PHQGPHQW
IRUXP sRQHV Y 1RUWK &DUROLQD 3ULVRQHUVj /DERU 8QLRQ                       DQG WKH XQLYHUVLW\ KDV QR FRQVWLWXWLRQDOO\ YDOLG UHDVRQ WR
,QF  86    ILQGLQJ WKDW SULVRQ LV D                   ZLWKKROGGLVWULEXWLRQRIWKH7KRUREUHGIURP.68
QRQSXEOLFIRUXP*UHHUY6SRFN86                           VWXGHQWVIURPWKDWHUD
KROGLQJWKDWPLOLWDU\LQVWDOODWLRQLVQRWDSXEOLFIRUXP1RU
LV7KH7KRUREUHGDFORVHO\PRQLWRUHGFODVVURRPDFWLYLW\LQ                             7KH.68RIILFLDOVDUJXHWKDWZLWKKROGLQJWKH\HDUERRNVLV
ZKLFK DQ LQVWUXFWRU DVVLJQV VWXGHQW HGLWRUV D JUDGH RU LQ                  H[FXVDEOHEHFDXVHWKH\ZHUHUHJXODWLQJWKHVW\OHDQGIRUPRI
ZKLFKDXQLYHUVLW\RIILFLDOHGLWVFRQWHQW6HH+D]HOZRRG                       WKH\HDUERRNVUDWKHUWKDQWKHLUFRQWHQW$WRUDODUJXPHQW
86DW7KHVWXGHQWKDQGERRNLWVHOIGHVFULEHVWKH                           FRXQVHOIRUWKHRIILFLDOVDUJXHGWKDWWKHUHFRUGFRQWDLQVQR
\HDUERRNDVDmVWXGHQWSXEOLFDWLRQlWKDWVKRXOGmH[LVWLQDQ                         HYLGHQFH WKDW WKH RIILFLDOV ZLWKKHOG GLVWULEXWLRQ RI WKH
DWPRVSKHUH RI IUHH DQG    UHVSRQVLEOH GLVFXVVLRQ DQG RI                       \HDUERRNVEDVHGRQFRQWHQWRUWKDWWKH\DOWHUHGWKHFRQWHQWRI
LQWHOOHFWXDO H[SORUDWLRQl  ,W LV GLIILFXOW WR FRQFHLYH RI D              WKH\HDUERRNV7KLVDUJXPHQWLVVLPSO\QRWFUHGLEOH)LUVW
IRUXPZKRVHQDWXUHLVPRUHFRPSDWLEOHZLWKH[SUHVVLRQ                              WKH UHFRUG PDNHV FOHDU WKDW *LEVRQ VRXJKW WR UHJXODWH WKH
                                                                                     FRQWHQWRIWKH\HDUERRNLQDGGLWLRQWRFRPSODLQLQJ
                                                                                     DERXW WKH \HDUERRNjV FRORU ODFN RI FDSWLRQV DQG RYHUDOO
       
                                                                                     TXDOLW\*LEVRQZLWKKHOGWKH\HDUERRNVEHFDXVHVKHIRXQGWKH
      7KH KDQGERRN IXUWKHU VWDWHV WKDW DOWKRXJK WKH \HDUERRN LV                      \HDUERRN WKHPH RI mGHVWLQDWLRQ XQNQRZQl LQDSSURSULDWH
mVXEVLGL]HG E\ WKH 8QLYHUVLW\ LW LV WKH LQWHQW WKDW >LW@ VKDOO EH IUHH RI           *LEVRQ DOVR GLVDSSURYHG RI WKH LQFOXVLRQ RI SLFWXUHV RI
FHQVRUVKLS DV SUHYDLOLQJ ODZ GLFWDWHVl      $OWKRXJK ZH DFNQRZOHGJH WKDW
                                                                                     FXUUHQWHYHQWVDQGWHVWLILHGWKDWm>W@KHUHZHUHDORWRISLFWXUHV
                                                                                     LQWKHEDFNRIWKHERRNWKDWWRPHORRNHGOLNHD/LIH
WKLV   IUHHGRP IURP FHQVRUVKLS EHJV WKH TXHVWLRQ RI ZKDW SUHFLVHO\
SUHYDLOLQJ ODZ GLFWDWHV ZH ILQG LW KDUG WR IDWKRP WKDW .68 ZRXOG KDYH
LQFOXGHG    VXFK   ODQJXDJH   LQ   LWV   VWXGHQW   SXEOLFDWLRQV   SROLF\   LI   LW   PDJD]LQHl  *LEVRQ IXUWKHU VWDWHG WKDW WKH LQFOXVLRQ RI
FRQWHPSODWHG FRQILVFDWLQJ DQG ZLWKKROGLQJ GLVWULEXWLRQ RI SXEOLFDWLRQV               SLFWXUHVRIFXUUHQWHYHQWVmZDVQRWH[DFWO\ZKDW,WKRXJKWLW
ZLWK ZKLFK LW GLVDJUHHG
     .LQFDLGHWDOY*LEVRQHWDO                        1R         1R                 .LQFDLGHWDOY*LEVRQHWDO      

  ,Q VXP RXU UHYLHZ RI .68jV SROLF\ DQG SUDFWLFH ZLWK                                                 &RQWH[W
UHJDUGWR7KH7KRUREUHGWKHQDWXUHRIWKH\HDUERRNDQGLWV
FRPSDWLELOLW\ ZLWK H[SUHVVLYH DFWLYLW\ DQG WKH XQLYHUVLW\                        :HDUHDOVRSHUVXDGHGWKDWWKHFRQWH[WZLWKLQZKLFKWKLV
FRQWH[WLQZKLFKWKH\HDUERRNLVFUHDWHGDQGGLVWULEXWHGDOO                       FDVHDULVHVLQGLFDWHVWKDW7KH7KRUREUHGFRQVWLWXWHVDOLPLWHG
SURYLGHVWURQJHYLGHQFHRIWKHXQLYHUVLW\jVLQWHQWWRGHVLJQDWH                     SXEOLFIRUXP7KHXQLYHUVLW\LVDVSHFLDOSODFHIRUSXUSRVHV
WKH \HDUERRN DV D OLPLWHG SXEOLF IRUXP  $FFRUGLQJO\ ZH                   RI)LUVW$PHQGPHQWMXULVSUXGHQFH7KHGDQJHURImFKLOOLQJ
PXVWGHWHUPLQHZKHWKHUWKHXQLYHUVLW\RIILFLDOVjDFWLRQVZLWK                       LQGLYLGXDOWKRXJKWDQGH[SUHVVLRQLVHVSHFLDOO\UHDOLQ
UHVSHFWWRWKH\HDUERRNZHUHFRQVWLWXWLRQDO                                        WKH 8QLYHUVLW\ VHWWLQJ ZKHUH WKH 6WDWH DFWV DJDLQVW D
                                                                                    EDFNJURXQGDQGWUDGLWLRQRIWKRXJKWDQGH[SHULPHQWWKDWLVDW
     &&RQVWLWXWLRQDOLW\RI8QLYHUVLW\2IILFLDOVj$FWLRQV                         WKH FHQWHU RI RXU LQWHOOHFWXDO DQG SKLORVRSKLF WUDGLWLRQl
                                                                                    5RVHQEHUJHU  86 DW  FLWLQJ FDVHV VHH DOVR
   $V GLVFXVVHG VXSUD WKH JRYHUQPHQW PD\ LPSRVH RQO\                       :LGPDU86DWQm7KLV&RXUWKDVUHFRJQL]HGWKDW
UHDVRQDEOHWLPHSODFHDQGPDQQHUUHJXODWLRQVDQGFRQWHQW                        WKH FDPSXV RI D SXEOLF XQLYHUVLW\ DW OHDVW IRU LWV VWXGHQWV
EDVHG UHJXODWLRQV WKDW DUH QDUURZO\ GUDZQ WR HIIHFWXDWH D                   SRVVHVVHVPDQ\RIWKHFKDUDFWHULVWLFVRIDSXEOLFIRUXPl
FRPSHOOLQJVWDWHLQWHUHVWRQH[SUHVVLYHDFWLYLW\LQDOLPLWHG                      7KHXQLYHUVLW\HQYLURQPHQWLVWKHTXLQWHVVHQWLDOmPDUNHWSODFH
SXEOLFIRUXP6HH3HUU\86DW,QDGGLWLRQDVZLWK                     RI LGHDVl ZKLFK PHULWV IXOO RU LQGHHG KHLJKWHQHG )LUVW
DOO PDQQHU RI IRUD WKH JRYHUQPHQW PD\ QRW VXSSUHVV                         $PHQGPHQWSURWHFWLRQ6HH+HDO\YsDPHV86
H[SUHVVLRQRQWKHEDVLVWKDWVWDWHRIILFLDOVRSSRVHDVSHDNHUjV                       VWDWLQJ WKDW WKH mYLJLODQW SURWHFWLRQ RI
YLHZ6HHLG)RUWKHIROORZLQJUHDVRQVZHKROGWKDWWKH                         FRQVWLWXWLRQDO IUHHGRPV LV QRZKHUH PRUH YLWDO WKDQ LQ WKH
DFWLRQV WDNHQ E\ WKH .68 RIILFLDOV UDQ DIRXO RI WKHVH                      FRPPXQLW\ RI $PHULFDQ VFKRROVl  TXRWDWLRQ PDUNV DQG
UHVWULFWLRQVRQJRYHUQPHQWDFWLRQ                                                  FLWDWLRQRPLWWHG,QDGGLWLRQWRWKHQDWXUHRIWKHXQLYHUVLW\
                                                                                    VHWWLQJZHILQGLWUHOHYDQWWKDWWKHHGLWRUVRI7KH7KRUREUHG
  8SRQWKHLUUHWXUQIURPWKHSULQWHUWKH\HDUERRNV                         DQGLWVUHDGHUVDUHOLNHO\WREH\RXQJDGXOWV.LQFDLGKLPVHOI
ZHUH GHOLYHUHG WR WKH RIILFH RI /DXUD &XOOHQ WKH VWXGHQW                  ZDVWKLUW\VHYHQDWWKHWLPHRIKLV0DUFKGHSRVLWLRQ
SXEOLFDWLRQV DGYLVRU  %HIRUH WKH\ FRXOG EH GLVWULEXWHG WR                  7KXV WKHUH FDQ EH QR MXVWLILFDWLRQ IRU VXSSUHVVLQJ WKH
.LQFDLG DQG RWKHU .68 VWXGHQWV *LEVRQ RUGHUHG /HVOLH                        \HDUERRN RQ WKH JURXQGV WKDW LW PLJKW EH mXQVXLWDEOH IRU
7KRPDV WR KDYH WKHP VHFXUHG 7KRPDV FRPSOLHG DQG                           LPPDWXUHDXGLHQFHVl&RPSDUH+D]HOZRRG86DW
ZLWKRXW DQ\ QRWLILFDWLRQ RU H[SODQDWLRQ WR &XOOHQ WKH                       IRRWQRWH RPLWWHG ZLWK :LGPDU  86 DW  Q
\HDUERRNVZHUHVSLULWHGDZD\7RWKLVGD\QHDUO\VL[\HDUV                      m8QLYHUVLW\VWXGHQWVDUHRIFRXUVH\RXQJDGXOWV7KH\DUH
DIWHUWKH\HDUERRNVUHWXUQHGIURPWKHSULQWHUWKHXQLYHUVLW\                     OHVV LPSUHVVLRQDEOH WKDQ \RXQJHU VWXGHQWV    l
UHIXVHV WR GLVWULEXWH WKHP  7KLV LV QRW D UHDVRQDEOH WLPH               $FFRUGLQJO\ ZH ILQG WKDW WKH IDFW WKDW WKH IRUXP DW LVVXH
SODFHRUPDQQHUUHJXODWLRQRIH[SUHVVLYHDFWLYLW\6HH3HUU\                     DULVHVLQWKHXQLYHUVLW\FRQWH[WPLWLJDWHVLQIDYRURIILQGLQJ
86DWVHHDOVR3DSLVKY%RDUGRI&XUDWRUVRIWKH                         WKDWWKH\HDUERRNLVDOLPLWHGSXEOLFIRUXP
8QLY RI 0LVVRXUL  86    KROGLQJ WKDW
XQLYHUVLW\jVH[SXOVLRQRIJUDGXDWHVWXGHQWIRUGLVWULEXWLQJRQ                                       .682IILFLDOVj$UJXPHQWV
                                                                                      7KH.68RIILFLDOVGLVSXWHWKLVVXEVWDQWLDOHYLGHQFHRIWKH
                                                                                    XQLYHUVLW\jV LQWHQW WR FUHDWH D OLPLWHG SXEOLF IRUXP LQ WKH
VSHHFK   6HH   9LUJLQLD
&RQVXPHU &RXQFLO ,QF
                           6WDWH   %G   RI   3KDUPDF\   Y   9LUJLQLD
                             86    m>:@KHUH D VSHDNHU
                                                                         &LWL]HQV
                                                                                    VWXGHQW \HDUERRN  7KH\ DUJXH WKDW D OLPLWHG SXEOLF IRUXP
H[LVWV    WKH SURWHFWLRQ DIIRUGHG LV WR WKH FRPPXQLFDWLRQ WR LWV VRXUFH         FDQQRWH[LVWXQOHVVWKHJRYHUQPHQWKDVRSHQHGWKHIRUXPDW
DQG WR LWV UHFLSLHQWV ERWKl IRRWQRWH RPLWWHG
    .LQFDLGHWDOY*LEVRQHWDO                1R        1R                  .LQFDLGHWDOY*LEVRQHWDO         

LVVXH IRU mLQGLVFULPLQDWH XVH E\ WKH JHQHUDO SXEOLFl  7KH       RIILFLDOV DJDLQ PLVLQWHUSUHW )LUVW $PHQGPHQW IRUXP ODZ
GLVWULFW FRXUW DJUHHG FRQFOXGLQJ WKDW WKH \HDUERRN ZDV D         7KHUH LV D mGLVWLQFWLRQ EHWZHHQ µJHQHUDO DFFHVVj ZKLFK
QRQSXEOLFIRUXPE\UHDVRQLQJWKDW.LQFDLGDQG&RIIHUKDG                  LQGLFDWHVWKDWWKHSURSHUW\LVDGHVLJQDWHGSXEOLFIRUXPDQG
mSXWIRUWKQRHYLGHQFHWKDW7KH7KRUREUHGZDVLQWHQGHGWR                 µVHOHFWLYH DFFHVVj ZKLFK LQGLFDWHV WKDW WKH SURSHUW\ LV D
UHDFKRUFRPPXQLFDWHZLWKDQ\ERG\EXW.68VWXGHQWVl7KLV                QRQSXEOLF IRUXPl  )RUEHV  86 DW  FLWDWLRQV
UHDVRQLQJEDGO\GLVWRUWVDEDVLFWHQHWRISXEOLFIRUXPODZ,W           RPLWWHG*HQHUDODFFHVVLVGHILQHGDVWKHVLWXDWLRQLQZKLFK
LV WUXH WKDW RQH RI WKH ZD\V LQ ZKLFK WKH JRYHUQPHQW PD\       WKHJRYHUQPHQWmPDNHVLWVSURSHUW\JHQHUDOO\DYDLODEOHWRD
FUHDWHRUGHVLJQDWHDSXEOLFIRUXPLVE\RSHQLQJWKHIRUXP                FHUWDLQFODVVRIVSHDNHUVl,GHPSKDVLVDGGHG6HOHFWLYH
mIRULQGLVFULPLQDWHXVHE\WKHJHQHUDOSXEOLFl6HH3HUU\           DFFHVV RFFXUV ZKHQ WKH JRYHUQPHQW mGRHV QR PRUH WKDQ
86DW%XWWKHJRYHUQPHQWPD\FUHDWHDOLPLWHGSXEOLF               UHVHUYHHOLJLELOLW\IRUDFFHVVWRWKHIRUXPWRDSDUWLFXODUFODVV
IRUXPLQRWKHUZD\VDVZHOOmDSXEOLFIRUXPPD\EHFUHDWHG              RI VSHDNHUV ZKRVH PHPEHUV PXVW WKHQ DV LQGLYLGXDOV
E\ JRYHUQPHQW GHVLJQDWLRQ RI D SODFH RU FKDQQHO RI                µREWDLQ SHUPLVVLRQj WR XVH LWl  ,G HPSKDVLV DGGHG DQG
FRPPXQLFDWLRQIRUXVHE\WKHSXEOLFDWODUJHIRUDVVHPEO\DQG             FLWDWLRQ RPLWWHG  ,Q WKH LQVWDQW FDVH .68jV SROLF\ DQG
VSHHFKIRUXVHE\FHUWDLQVSHDNHUVRUIRUWKHGLVFXVVLRQRI             SUDFWLFHLQGLFDWHWKDWWKHXQLYHUVLW\LQWHQGHGWRGHVLJQDWHWKH
FHUWDLQ VXEMHFWVl  &RUQHOLXV  86 DW  HPSKDVLV          \HDUERRNDVDSXEOLFIRUXPIRUWKRVHVWXGHQWVZKREHFDPH
DGGHGVHHDOVR+D]HOZRRG86DWm>+LJK@VFKRRO               HGLWRUVRIWKH\HDUERRNLQRWKHUZRUGVWKHVWXGHQWHGLWRUV
IDFLOLWLHVPD\EHGHHPHGWREHSXEOLFIRUXPVRQO\LIVFKRRO               FRPSRVHG WKH mFODVV RI VSHDNHUVl IRU ZKLFK WKH XQLYHUVLW\
DXWKRULWLHV KDYH µE\ SROLF\ RU E\ SUDFWLFHj RSHQHG WKH            GHVLJQDWHG WKH \HDUERRN DV D OLPLWHG SXEOLF IRUXP  7KHVH
IDFLOLWLHVµIRULQGLVFULPLQDWHXVHE\WKHJHQHUDOSXEOLFjRUE\          HGLWRUVZHUHXQGHUQRREOLJDWLRQWRmREWDLQSHUPLVVLRQlHDFK
VRPHVHJPHQWRIWKHSXEOLFVXFKDVVWXGHQWRUJDQL]DWLRQVl               WLPHWKH\VRXJKWWRDFFHVVWKH\HDUERRNLQGHHGWKHSROLF\
FLWDWLRQV RPLWWHG DQG HPSKDVLV DGGHG  7KXV WKH                DQGSUDFWLFHRIWKHXQLYHUVLW\ZDVWRJLYHWKHVWXGHQWHGLWRUV
SURSRVLWLRQ SXW IRUWK E\ WKH XQLYHUVLW\ RIILFLDOV DQG UHOLHG      H[FOXVLYHFRQWURORYHUWKHFRQWHQWRI7KH7KRUREUHG7KXV
XSRQE\WKHGLVWULFWFRXUWLHWKDWWKHJRYHUQPHQW PXVW             WKHVWXGHQWHGLWRUVKDGmJHQHUDODFFHVVlWRWKH\HDUERRN6HH
RSHQDIRUXPIRULQGLVFULPLQDWHXVHE\WKHJHQHUDOSXEOLFLQ              )RUEHV86DW7KLVLVFRQVLVWHQWZLWKRXUILQGLQJ
RUGHUWRFUHDWHDGHVLJQDWHGSXEOLFIRUXPLVHUURQHRXV                WKDWWKH\HDUERRNFRQVWLWXWHVDOLPLWHGSXEOLFIRUXPIRUWKDW
                                                                          SDUWLFXODUFODVV
   7KH.68RIILFLDOVIXUWKHUDUJXHWKDWRQO\VHOHFWLQGLYLGXDOV
KDGDFFHVVWR7KH7KRUREUHGDQGWKDWm>D@GHVLJQDWHGSXEOLF
IRUXPLVQRWFUHDWHGZKHQWKHJRYHUQPHQWDOORZVVHOHFWLYH                     
DFFHVVIRULQGLYLGXDOVSHDNHUVUDWKHUWKDQJHQHUDODFFHVVIRU                     :H QRWH WKDW WKH FODVV LQ WKLV FDVH WXUQHG RXW WR LQFOXGH DW PRVW
D FODVV RI VSHDNHUVl  6HH )RUEHV  86 DW   ,Q DQ   WKUHH VWXGHQWV  &RIIHU DQG WKH WZR \HDUERRN VWDII PHPEHUV ZKR EULHIO\
                                                                          DVVLVWHG KHU  DQG SHUKDSV LQFOXGHV DV IHZ DV RQH &RIIHU 7KH VPDOO
DWWHPSWWREULQJ7KH7KRUREUHGXQGHUWKLVUXOHWKHRIILFLDOV             QXPEHU RI VWXGHQWV ZKR HQGHG XS ZRUNLQJ RQ WKH \HDUERRN KDV QR
SRLQW RXW WKDW .68 OLPLWHG DFFHVV WR WKH \HDUERRN WR WKH        EHDULQJ RQ RXU ILQGLQJ WKDW WKH \HDUERRN FRQVWLWXWHV D OLPLWHG SXEOLF
\HDUERRNVWDII ZKLFKLQWKLVFDVHZDVFRPSULVHGRIRQO\               IRUXP 2XU IRFXV LV RQ ZKHWKHU WKH XQLYHUVLW\ LQWHQGHG WR FUHDWH D OLPLWHG
&RIIHU7KHRIILFLDOVQRWHDGGLWLRQDOO\WKDW.68jVVWXGHQW               SXEOLF IRUXP LQ WKH \HDUERRN 7KH SDUWLFXODU HYHQWV LQ WKLV FDVH 
KDQGERRNLPSRVHVFHUWDLQPLQLPXPUHTXLUHPHQWVVXFKDV                  LQFOXGLQJ WKH IDFWV WKDW D VPDOO QXPEHU RI VWXGHQWV MRLQHG WKH \HDUERRN

DPLQLPXPJUDGHSRLQWDYHUDJHRUVXFFHVVIXOFRPSOHWLRQRI                 VWDII DQG WKDW WZR VWXGHQWV OHIW LW  WUDQVSLUHG ORQJ DIWHU WKH XQLYHUVLW\
                                                                          H[SUHVVHG LWV LQWHQW WR FUHDWH D OLPLWHG SXEOLF IRUXP IRU WKH VWXGHQW
DMRXUQDOLVPFRXUVHXSRQPHPEHUVRIWKH\HDUERRNjVERDUG               \HDUERRN HGLWRUV ZKRPHYHU WKH\ PLJKW WXUQ RXW WR EH :H IXUWKHU QRWH
RIHGLWRUVDQGWKDWWKHUHLVQRHYLGHQFHWKDWWKHVWXGHQWERG\           WKDW DOWKRXJK .LQFDLG LV QRW SDUW RI WKH FODVV RI VWXGHQW VSHDNHUV ZKR
DV D ZKROH PD\ FRQWULEXWH WR WKH \HDUERRN  7KH .68             ZRUNHG RQ WKH \HDUERRN WKH )LUVW $PHQGPHQW SURWHFWV KLV ULJKW WR UHDG
                                                                          7KH 7KRUREUHG    RQFH WKH XQLYHUVLW\ KDV RSHQHG LW XS DV D IRUXP IRU
