      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


/$55< ) +520(7=             ;
         3ODLQWLII$SSHOODQW  
            &URVV$SSHOOHH    
                                    1RV
                                    
           Y                   !
                               
                               
/2&$/  ,17(51$7,21$/       
$662&,$7,21 2) %5,'*(          
&216758&7,21 $1'               
251$0(17$/                     
                               
,521:25.(56 DQG 5866(//       
1()) DQG :,//,$0 9            
6+(5(5 LQWKHLUSHUVRQDODQG 
LQGLYLGXDOFDSDFLWLHV         
,17(51$7,21$/                  
$662&,$7,21 2) %5,'*(         
                               
6758&785$/ $1'                 
251$0(17$/                     
,521:25.(56                   
       'HIHQGDQWV$SSHOOHHV 
            &URVV$SSHOODQWV 1

     $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
   IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW<RXQJVWRZQ
  1Rn3HWHU&(FRQRPXV'LVWULFWsXGJH
               $UJXHG$XJXVW

                           
     +URPHW]Y,QWjO$VVjQRI         1RV
      %ULGJH&RQVWUXFWLRQHWDO

           'HFLGHGDQG)LOHG6HSWHPEHU
    %HIRUH.(,7+&2/(DQG*,/0$1&LUFXLWsXGJHV
                      BBBBBBBBBBBBBBBBB
                           &2816(/
$5*8('(GZDUG/*LOEHUW$NURQ2KLRIRU$SSHOODQW
&RUQHOLXV s %DDVWHQ *5((1 +$,1(6 6*$0%$7,
0853+<	0$&$/$&DQWRQ2KLR(EHQ20F1DLU,9
6&+:$5=:$/'52&.	0&1$,5&OHYHODQG2KLR
IRU$SSHOOHHV21%5,()(GZDUG/*LOEHUW$NURQ2KLR
IRU $SSHOODQW  5RQDOG * 0DFDOD *5((1 +$,1(6
6*$0%$7,0853+<	0$&$/$&DQWRQ2KLR(EHQ
20F1DLU,97LPRWK\s*DOODJKHU6&+:$5=:$/'
52&.	0&1$,5&OHYHODQG2KLRIRU$SSHOOHHV
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
   521$/'/((*,/0$1&LUFXLWsXGJH/DUU\+URPHW]
ILOHGDPXQLFLSDOFRXUWVXLWDJDLQVWKLVORFDOXQLRQLQDGLVSXWH
RYHU KLV ELG WR SXUFKDVH RQH RI WKH XQLRQjV GDPDJHG
DXWRPRELOHV7KHXQLRQWKHQH[SHOOHG+URPHW]EHFDXVHE\
SURFHHGLQJGLUHFWO\WROLWLJDWLRQZLWKRXWILUVWH[KDXVWLQJKLV
LQWHUQDO XQLRQ UHPHGLHV KH KDG YLRODWHG WKH XQLRQjV
FRQVWLWXWLRQ+URPHW]UHVSRQGHGE\ILOLQJWKHSUHVHQWVXLWLQ
IHGHUDOFRXUWDJDLQVWERWKKLVORFDOXQLRQDQGLWVLQWHUQDWLRQDO
SDUHQWFODLPLQJWKDWKLVH[SXOVLRQYLRODWHGKLVULJKWWRVXHDV
SURYLGHG E\ 6HFWLRQ D RI WKH /DERU 0DQDJHPHQW
5HSRUWLQJDQG'LVFORVXUH$FWRI/05'$FRGLILHGDW
86&D7KHGLVWULFWFRXUWJUDQWHGVXPPDU\
MXGJPHQWLQIDYRURIERWKWKHORFDODQGSDUHQWXQLRQV)RUWKH
UHDVRQVVHWIRUWKEHORZZH5(9(56(WKHMXGJPHQWRIWKH
GLVWULFWFRXUWDQG5(0$1'ZLWKLQVWUXFWLRQVIRUWKHGLVWULFW
FRXUW  WR HQWHU DQ RUGHU GLUHFWLQJ WKH XQLRQ WR UHLQVWDWH
+URPHW]  WR HQMRLQ HQIRUFHPHQW RI WKH GLVFLSOLQDU\
    +URPHW]Y,QWjO$VVjQRI        1RV         1RV         +URPHW]Y,QWjO$VVjQRI       
      %ULGJH&RQVWUXFWLRQHWDO                                                                  %ULGJH&RQVWUXFWLRQHWDO

                     ,,,&21&/86,21                                 PHDVXUHV FRQWDLQHG LQ VHQWHQFHV WKUHH DQG IRXU RI $UWLFOH
                                                                      ;,; 6HFWLRQ  RI WKH XQLRQjV FRQVWLWXWLRQ DQG  WR
  )RUDOORIWKHUHDVRQVVHWIRUWKDERYHZH5(9(56(WKH              GHWHUPLQH WKH H[WHQW WR ZKLFK +URPHW] PD\ EH HQWLWOHG WR
MXGJPHQW RI WKH GLVWULFW FRXUW DQG 5(0$1' ZLWK                 PRQHWDU\GDPDJHV
LQVWUXFWLRQVIRUWKHGLVWULFWFRXUWWRHQWHUDQRUGHUGLUHFWLQJ
/RFDOWRUHLQVWDWH+URPHW]WRHQMRLQHQIRUFHPHQWRI                               ,%$&.*5281'
WKH GLVFLSOLQDU\ PHDVXUHV FRQWDLQHG LQ VHQWHQFHV WKUHH DQG
IRXURI$UWLFOH;,;6HFWLRQRIWKHXQLRQjVFRQVWLWXWLRQDQG       $ ,QWHUQDOXQLRQSURFHHGLQJV
WRGHWHUPLQHWKHH[WHQWWRZKLFK+URPHW]PD\EHHQWLWOHG
WRPRQHWDU\GDPDJHV                                                     +URPHW]MRLQHGWKH/RFDOEUDQFKRIWKH,QWHUQDWLRQDO
                                                                      $VVRFLDWLRQ RI %ULGJH 6WUXFWXUDO DQG 2UQDPHQWDO
                                                                      ,URQZRUNHUV WKH ,QWHUQDWLRQDO LQ   ,Q 'HFHPEHU RI
                                                                       DQ DXWRPRELOH RZQHG E\ /RFDO  ZDV VHYHUHO\
                                                                      GDPDJHGLQDFROOLVLRQ/RFDOGHFLGHGWRDXFWLRQRIIWKH
                                                                      GDPDJHGFDUWRLWVPHPEHUVE\ZD\RIVHDOHGELGV+URPHW]
                                                                      DOOHJHVWKDWKHZDVWKHRQO\PHPEHUWRVXEPLWVXFKDELGD
                                                                      IDFWFRQWHVWHGE\/RFDO7KHDXWRPRELOHZDVXOWLPDWHO\
                                                                      VROGWRDQRWKHU/RFDOPHPEHU
                                                                         ,Q0DUFKRI+URPHW]ILOHGDVXLWDJDLQVW/RFDOLQ
                                                                      WKH0XQLFLSDO&RXUWRI&DQWRQ2KLRDOOHJLQJWKDW/RFDO
                                                                      KDGEUHDFKHGLWVFRQWUDFWZLWKKLPE\VHOOLQJWKHDXWRPRELOH
                                                                      WRVRPHRQHHOVH/RFDODWWHPSWHGWRUHPRYHWKHDFWLRQWR
                                                                      IHGHUDOFRXUW7KHGLVWULFWFRXUWGHQLHGMXULVGLFWLRQILQGLQJ
                                                                      WKDW+URPHW]ZDVDVVHUWLQJDSXUHEUHDFKRIFRQWUDFWFODLP
                                                                      WKDWGLGQRWLPSOLFDWHDQ\IHGHUDOODERUODZ8SRQUHPDQG
                                                                      WKH0XQLFLSDO&RXUWGHWHUPLQHGWKDW/RFDOKDGmDFWHG
                                                                      ZLWKLQLWVDXWKRULW\LQGLVSRVLQJRIWKHDXWRPRELOHlDQG
                                                                      WKHUHIRUHUXOHGLQIDYRURIWKHXQLRQ3ULRUWRILOLQJVXLWRYHU
                                                                      WKH DXWRPRELOH +URPHW] KDG PDGH QR DWWHPSW WR LQYRNH
                                                                      LQWHUQDOXQLRQJULHYDQFHSURFHGXUHV
                                                                         ,Q0D\RID/RFDORIILFLDOILOHGDFKDUJHZLWKWKH
                                                                      XQLRQSUHVLGHQWDJDLQVW+URPHW]DOOHJLQJWKDW+URPHW]KDG
                                                                      YLRODWHG$UWLFOH;,;6HFWLRQRIWKHXQLRQjVFRQVWLWXWLRQE\
                                                                      ILOLQJVXLWZLWKRXWILUVWSXUVXLQJKLVLQWHUQDOXQLRQUHPHGLHV
                                                                      $UWLFOH ;,; 6HFWLRQ  RI WKH FRQVWLWXWLRQ SURYLGHV LQ
                                                                      SHUWLQHQWSDUWDVIROORZV
      +URPHW]Y,QWjO$VVjQRI        1RV        1RV            +URPHW]Y,QWjO$VVjQRI        
       %ULGJH&RQVWUXFWLRQHWDO                                                                    %ULGJH&RQVWUXFWLRQHWDO

    1RVXLWRURWKHUDFWLRQDWODZRUHTXLW\VKDOOEHEURXJKW         QRWH KRZHYHU /RFDO 
V XQUHIXWHG HYLGHQFH WKDW LW KDV
    LQDQ\FRXUWXQOHVVDOOULJKWVUHPHGLHVDQGUHDVRQDEOH     DOORZHG+URPHW]WRFRQWLQXHXVLQJLWVKLULQJKDOOVLQFHKLV
    SURYLVLRQV IRU KHDULQJ WULDO DQG DSSHDO ZLWKLQ WKH        H[SXOVLRQ7KHUHWKXVH[LVWVDVHULRXVTXHVWLRQDVWRZKHWKHU
    ,QWHUQDWLRQDO $VVRFLDWLRQ VKDOO KDYH EHHQ SURSHUO\           +URPHW]KDVLQFXUUHGDQ\HFRQRPLFORVVDWDOODVDUHVXOWRI
    IROORZHGDQGH[KDXVWHG7KLVSURYLVLRQVKDOOUHTXLUH      WKHDFWLRQVWDNHQDJDLQVWKLP
    UHVRUW WR LQWHUQDO UHPHGLHV IRU D SHULRG QRW H[FHHGLQJ
    IRXU  PRQWKV  9LRODWLRQ RI WKLV 6HFWLRQ VKDOO EH     ' $OOHJHGGXHSURFHVVYLRODWLRQVRQWKHSDUWRIWKH*(%
    VXIILFLHQWFDXVHIRUH[SXOVLRQIURPPHPEHUVKLSLQWKLV
    ,QWHUQDWLRQDO $VVRFLDWLRQ DQG LWV /RFDO 8QLRQV  ,Q          +URPHW]FODLPVWKDWKHZDVGHQLHGDIDLUKHDULQJRQDSSHDO
    DGGLWLRQDQ\RIILFHUPHPEHURU/RFDO8QLRQYLRODWLQJ            EHIRUHWKH*(%E\WKHFRQVLGHUDWLRQRIQHZHYLGHQFHDJDLQVW
    WKLVSURYLVLRQVKDOOEHVXEMHFWWRDILQHHTXDOWRWKHIXOO       KLPWKDWZDVQRWSUHVHQWHGEHIRUHWKHXQLRQMXU\%HFDXVHZH
    DPRXQWRIWKHFRVWVLQFXUUHGLQWKHGHIHQVHRIDQ\VXFK           KDYHFRQFOXGHGWKDW+URPHW]LVHQWLWOHGWRVXPPDU\MXGJPHQW
    DFWLRQ                                                    EDVHGRQWKHGHIHQGDQWVjYLRODWLRQRIKLVULJKWWRVXHXQGHUWKH
                                                                      /05'$ZHQHHGQRWUHDFKWKLVLVVXH
  +URPHW]ZDVWULHGLQDGLVFLSOLQDU\KHDULQJEHIRUHD/RFDO
 mMXU\l DQG IRXQG JXLOW\ RI YLRODWLQJ WKH H[KDXVWLRQ       ( /RFDOjVFURVVDSSHDO
UHTXLUHPHQW  7KH MXU\ UHFRPPHQGHG WKDW +URPHW] EH
H[SHOOHGIURP/RFDODQGILQHGIRUWKHOHJDOIHHV             /RFDOREMHFWVWRZKDWLWFRQVWUXHVDVDQLPSOLFLWILQGLQJ
LQFXUUHGE\WKHXQLRQLQGHIHQGLQJ+URPHW]jVVXLW                   RQ WKH SDUW RI WKH GLVWULFW FRXUW WKDW /RFDO  ZDV VROHO\
                                                                      UHVSRQVLEOHIRU+URPHW]jVH[SXOVLRQWRWKHH[FOXVLRQRIWKH
   +URPHW] DSSHDOHG WKH GHFLVLRQ WR WKH ,QWHUQDWLRQDOjV         ,QWHUQDWLRQDO7KHODQJXDJHLQWKHGLVWULFWFRXUWjVRSLQLRQWKDW
*HQHUDO ([HFXWLYH %RDUG *(%  7KH *(% DVVLJQHG D            /RFDOSRLQWVWRLVDVIROORZVm>7@KLVFRXUWFRQFOXGHV
UHSUHVHQWDWLYH 5REHUW 6SLOOHU WR LQYHVWLJDWH  6SLOOHU        WKDW 3ODLQWLIIjV H[SXOVLRQ IURP PHPEHUVKLS DQG WKH
UHFRPPHQGHGWKDWWKHMXU\YHUGLFWEHDIILUPHG,QVXSSRUWRI         UDWLILFDWLRQRIVDLGDFWLRQE\WKH,QWHUQDWLRQDOGLGQRWYLRODWH
KLVFRQFOXVLRQ6SLOOHUUHFLWHGDOLVWRIILQGLQJVEDVHGXSRQD       86&RUl
WZRKRXULQWHUYLHZZLWK+URPHW]DQGGLVFXVVLRQVZLWKWZR
XQLRQRIILFLDOV6SLOOHUUHSRUWHGWKDW+URPHW]mGLVOLNHVWKH             :HILQGQRWKLQJLQWKHDERYHODQJXDJHWRLQGLFDWHWKDWWKH
HQWLUHRSHUDWLRQVRI/RFDO1RlmIHHOVWKDWKHLVULJKWRQ       GLVWULFW FRXUW DVVLJQHG VROH UHVSRQVLELOLW\ IRU +URPHW]jV
DQ\LVVXHlmEHOLHYHVWKDWWKHRIILFHUVRI/RFDO1RKDYH         H[SXOVLRQWR/RFDO,QGHHGWKHODWWHUKDOIRIWKHTXRWHG
FRQVSLUHG DJDLQVW KLPl DQG mLV WRWDOO\ REVHVVHG ZLWK WKH     VHQWHQFH UHIHUHQFLQJ WKH ,QWHUQDWLRQDOjV UDWLILFDWLRQ RI
IULQJH EHQHILW IXQGVl  %DVHG RQ GLVFXVVLRQV ZLWK WKH WZR    +URPHW]jV H[SXOVLRQ PDNHV FOHDU WKDW WKH GLVWULFW FRXUW
XQLRQ RIILFLDOV 6SLOOHU IXUWKHU GHWHUPLQHG WKDW +URPHW]        YLHZHGWKH,QWHUQDWLRQDODVDUHVSRQVLEOHSDUW\0RUHRYHUWKH
mGLVUXSWHG WKH PHPEHUVKLS PHHWLQJV WR WKH SRLQW WKH            ,QWHUQDWLRQDOKDVQRWDUJXHGDWDQ\SRLQWLQWKLVOLWLJDWLRQWKDW
DWWHQGDQFH KDV GURSSHG RIIl mKDG WR EH DUUHVWHG LQ RQH      LWLVQRWDWOHDVWSDUWLDOO\UHVSRQVLEOHIRU+URPHW]jVH[SXOVLRQ
LQVWDQFHIRUKLVUHIXVDOWROHDYHDQ([HFXWLYH%RDUG0HHWLQJl        :HWKHUHIRUHVHHQRQHHGWRUXOHRQZKDWZHSHUFHLYHWREHD
DQGmWKUHDWHQHG%XVLQHVV0DQDJHU>:LOOLDP@6KHUHUZLWKD              QRQH[LVWHQWLVVXH
ILUHDUPl  1RQH RI WKHVH DVVHUWHG IDFWV ZHUH UDLVHG GXULQJ
+URPHW]jVGLVFLSOLQDU\KHDULQJEHIRUH/RFDO
    +URPHW]Y,QWjO$VVjQRI       1RV         1RV           +URPHW]Y,QWjO$VVjQRI        
      %ULGJH&RQVWUXFWLRQHWDO                                                                   %ULGJH&RQVWUXFWLRQHWDO

GLVSXWHV ZKLFK FDQ EH UHVROYHG SULYDWHO\l  3XUVXDQW WR       $IWHU FRQVLGHULQJ 6SLOOHUjV UHFRPPHQGDWLRQV WKH *(%
0DULQH :RUNHUV KRZHYHU WKH DSSURSULDWH HQIRUFHPHQW            GHFLGHG WR DIILUP +URPHW]jV H[SXOVLRQ  ,W GLG KRZHYHU
PHFKDQLVPIRUWKHH[KDXVWLRQUHTXLUHPHQWLVQRWWRVXEMHFWD         UHVFLQGWKHILQH7KH*(%QRWLILHG+URPHW]RILWVGHFLVLRQE\
ZD\ZDUG PHPEHU WR GLVFLSOLQH EXW UDWKHU IRU FRXUWV DQG      OHWWHU GDWHG 1RYHPEHU    3XUVXDQW WR WKH XQLRQjV
DGPLQLVWUDWLYHERDUGVWRVLPSO\GHFOLQHWRKHDUXQH[KDXVWHG          FRQVWLWXWLRQ +URPHW] WKHQ KDG WKH ULJKW WR WZR IXUWKHU
FODLPV6HH0DULQH:RUNHUV86DW,QWjO2UJRI          LQWHUQDO DSSHDOVnILUVW WR WKH *HQHUDO ([HFXWLYH &RXQFLO
0DVWHUV0DWHV	3LORWVY3UHYDV)GWK            *(&DQGILQDOO\WRWKH,QWHUQDWLRQDO8QLRQ&RQYHQWLRQ
&LUm>1@RWKLQJLQRXUKROGLQJSUHYHQWVDFRXUWIURP          +URPHW] KRZHYHU GLG QRW VHHN IXUWKHU UHYLHZ ZLWKLQ WKH
H[HUFLVLQJLWVGLVFUHWLRQWRGLVPLVVWKHVXLWRIDXQLRQPHPEHU      XQLRQIUDPHZRUN
ZKRKDVIDLOHGWRH[KDXVWLQWHUQDOXQLRQUHPHGLHV,QGHHGµLW
LV DSSURSULDWH WR HPSKDVL]H WKDW FRXUWV DQG DJHQFLHV ZLOO    % )HGHUDOFRXUWSURFHHGLQJV
IUXVWUDWHDQLPSRUWDQWSXUSRVHRI>WKH/05'$@LIWKH\GR
QRW LQ IDFW UHJXODUO\ FRPSHO XQLRQ PHPEHUV WR H[KDXVW        2Q0D\+URPHW]ILOHGVXLWLQIHGHUDOFRXUWDJDLQVW
UHDVRQDEOH KHDULQJ SURFHGXUHV ZLWKLQ WKH XQLRQ                  WKH,QWHUQDWLRQDO/RFDODQGWZRXQLRQRIILFLDOVn5XVVHOO
RUJDQL]DWLRQjlTXRWLQJ0DULQH:RUNHUV86DW            1HIISUHVLGHQWRI/RFDODQG:LOOLDP6KHUHU/RFDOjV
+DUODQ s FRQFXUULQJ VHFRQG VHW RI LQWHUQDO TXRWDWLRQ   EXVLQHVV PDQDJHU  +HUHLQDIWHU /RFDO  DQG LWV WZR
PDUNVRPLWWHG                                                    RIILFLDOV ZLOO EH FROOHFWLYHO\ UHIHUUHG WR DV /RFDO 
                                                                     +URPHW]DOOHJHGWKDWE\H[SHOOLQJKLPVROHO\EHFDXVHKHILOHG
  :HWKHUHIRUHUHYHUVHWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\         VXLWLQVPDOOFODLPVFRXUWWKHGHIHQGDQWVYLRODWHGKLVULJKWV
MXGJPHQWLQIDYRURIWKHGHIHQGDQWV%HFDXVHQRQHRIWKH            DVSURYLGHGLQWKH/05'$6HH86&D
UHOHYDQWIDFWVDUHFRQWHVWHGDQGWKHGHIHQGDQWVFRQFHGHWKDW
WKH\H[SHOOHG+URPHW]IRUILOLQJVXLWSULRUWRH[KDXVWLQJKLV          /RFDO  PRYHG IRU VXPPDU\ MXGJPHQW DUJXLQJ WKDW
LQWHUQDOXQLRQUHPHGLHVZHUHPDQGWKHPDWWHUWRWKHGLVWULFW        +URPHW]jVH[SXOVLRQZDVDSSURSULDWHEHFDXVHKLVFRPSODLQW
FRXUWZLWKLQVWUXFWLRQVWRHQWHUDQRUGHUGLUHFWLQJ/RFDO        DERXWWKHDXWRPRELOHVDOHZDVSXUHO\DQLQWHUQDOXQLRQPDWWHU
WR UHLQVWDWH +URPHW] DQG WR HQMRLQ WKH GHIHQGDQWV IURP       WKDWUHTXLUHGKLPWRILUVWSXUVXHKLVUHPHGLHVZLWKLQWKHXQLRQ
HQIRUFLQJWKHGLVFLSOLQDU\PHDVXUHVFRQWDLQHGLQVHQWHQFHV           JULHYDQFHSURFHVVEHIRUHFRPPHQFLQJDODZVXLWDJDLQVWWKH
WKUHH DQG IRXU RI $UWLFOH ;,; 6HFWLRQ  RI WKH XQLRQjV    XQLRQ7KH,QWHUQDWLRQDODOVRPRYHGIRUVXPPDU\MXGJPHQW
FRQVWLWXWLRQ&I3UHYDV)GDWLQYDOLGDWLQJWKH         XUJLQJ WKH GLVWULFW FRXUW WR GHFOLQH WR KHDU +URPHW]jV FDVH
SURYLVLRQRIDXQLRQFRQVWLWXWLRQWKDWDOORZHGWKHXQLRQWR          EHFDXVHKHGLGQRWH[KDXVWKLVLQWHUQDOXQLRQUHPHGLHVEHIRUH
UHFRYHUGDPDJHVIURPDPHPEHUZKRILOHGVXLWDJDLQVWWKH             EULQJLQJWKHIHGHUDOVXLW
XQLRQZLWKRXWILUVWH[KDXVWLQJKLVXQLRQUHPHGLHV3DZODN
)GDWHQMRLQLQJDXQLRQIURPHQIRUFLQJWKHVHFWLRQ          7KH PDJLVWUDWH MXGJH WR ZKRP WKH FDVH ZDV UHIHUUHG
RILWVFRQVWLWXWLRQWKDWSUHVFULEHGILQHVIRUILOLQJFRXUWDFWLRQV   UHFRPPHQGHG WKDW ERWK VXPPDU\ MXGJPHQW PRWLRQV EH
SUHPDWXUHO\                                                        GHQLHG EDVHG LQ SDUW RQ WKH HUURQHRXV FRQFOXVLRQ WKDW WKH
                                                                     XQLRQjVFRQVWLWXWLRQGLGQRWSHUPLWWKHXQLRQWRGLVFLSOLQHD
   ,QKLVFRPSODLQW+URPHW]VRXJKWFRPSHQVDWRU\GDPDJHV             PHPEHUIRUILOLQJVXLWDJDLQVWLW7KLVRYHUVLJKWZDVFRUUHFWHG
RI  SXQLWLYH GDPDJHV RI  DQG             E\WKHGLVWULFWFRXUWZKLFKREVHUYHGWKDW$UWLFOH;,;6HFWLRQ
DWWRUQH\VjIHHV%HFDXVHWKHGLVWULFWFRXUWGLGQRWFRQVLGHUWKH    RIWKHFRQVWLWXWLRQJUDQWHGWKHXQLRQWKHDXWKRULW\WRH[SHO
LVVXHRIGDPDJHVZHUHPDQGIRUDKHDULQJRQWKLVPDWWHU:H        PHPEHUV ZKR ILOHG VXLW EHIRUH H[KDXVWLQJ WKHLU LQWHUQDO
     +URPHW]Y,QWjO$VVjQRI         1RV          1RV          +URPHW]Y,QWjO$VVjQRI       
      %ULGJH&RQVWUXFWLRQHWDO                                                                     %ULGJH&RQVWUXFWLRQHWDO

UHPHGLHV%DVHGRQWKDWVHFWLRQWKHGLVWULFWFRXUWJUDQWHG              $OWKRXJKWKHLQWHUSUHWDWLRQJLYHQWRWKH/05'$LQ0DULQH
VXPPDU\MXGJPHQWLQIDYRURIERWKGHIHQGDQWV                          :RUNHUVLVWHFKQLFDOO\GLFWDLWVLPSRUWLVFOHDUDQGWKHUHIRUH
                                                                        ELQGLQJXSRQWKLVFRXUW6HH8QLWHG6WDWHVY2DNDU)G
 +URPHW]ILOHGDWLPHO\QRWLFHRIDSSHDO%RWK/RFDO             '&&LUm&DUHIXOO\FRQVLGHUHGODQJXDJHRI
DQG WKH ,QWHUQDWLRQDO ILOHG LQGHSHQGHQW FURVVDSSHDOV RQ          WKH6XSUHPH&RXUWHYHQLIWHFKQLFDOO\GLFWXPJHQHUDOO\PXVW
GLVFUHWHSRLQWVWKDWZLOOEHGLVFXVVHGEHORZ                          EHWUHDWHGDVDXWKRULWDWLYHlFLWDWLRQDQGLQWHUQDOTXRWDWLRQ
                                                                        PDUNV RPLWWHG  +URPHW] WKXV PDLQWDLQV WKDW 0DULQH
                         ,,$1$/<6,6                                  :RUNHUVZKROO\UHIXWHVWKHGHIHQGDQWVjFRQWHQWLRQWKDWWKH
                                                                        IRXUPRQWK H[KDXVWLRQ UHTXLUHPHQW LQ  D HQWLWOHG
$ 6WDQGDUGRIUHYLHZ                                                   /RFDOWRGLVFLSOLQH+URPHW]IRUKLVIDLOXUHWRH[KDXVW
  :HUHYLHZGHQRYRWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\                 :HDJUHH$VWKH1LQWK&LUFXLWREVHUYHGLQ%XUURXJKV
MXGJPHQW6HHHJ6PLWKY$PHULWHFK)G
WK &LU   6XPPDU\ MXGJPHQW LV DSSURSULDWH ZKHQ            2QFH LW LV HVWDEOLVKHG WKDW WKH SURYLVR LQ  86&
WKHUHDUHQRJHQXLQHLVVXHVRIPDWHULDOIDFWLQGLVSXWHDQGWKH           >@DLVDSROLF\JXLGHIRUWKHFRXUWVDQGQRWD
PRYLQJSDUW\LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ6HH             JUDQWRIDXWKRULW\WRWKHXQLRQWKHQIRUWKHSXUSRVH
)HG 5 &LY 3 F  ,Q GHFLGLQJ D PRWLRQ IRU VXPPDU\       RIH[DPLQLQJWKHOLPLWVRISHUPLVVLEOHXQLRQGLVFLSOLQH
MXGJPHQW WKH FRXUW PXVW YLHZ WKH HYLGHQFH DQG GUDZ DOO          ZH DUH OHIW ZLWK WKHVH ZRUGV  m1R ODERU RUJDQL]DWLRQ
UHDVRQDEOHLQIHUHQFHVLQIDYRURIWKHQRQPRYLQJSDUW\6HH              VKDOOOLPLWWKHULJKWRIDQ\PHPEHUWKHUHRIWRLQVWLWXWHDQ
0DWVXVKLWD(OHF,QGXV&RY=HQLWK5DGLR&RUS86               DFWLRQ LQ DQ\ FRXUW RU LQ D SURFHHGLQJ EHIRUH DQ\
7KHMXGJHLVQRWmWRZHLJKWKHHYLGHQFHDQG             DGPLQLVWUDWLYHDJHQF\l
GHWHUPLQHWKHWUXWKRIWKHPDWWHUEXWWRGHWHUPLQHZKHWKHU
WKHUHLVDJHQXLQHLVVXHIRUWULDOl$QGHUVRQY/LEHUW\/REE\        %XUURXJKV)GDW3XUVXDQWWR0DULQH:RUNHUV
,QF  86     $ JHQXLQH LVVXH IRU WULDO   WKHQDODERUXQLRQPD\QRWXVHWKHIRXUPRQWKSURYLVLRQRI
H[LVWVZKHQWKHUHLVVXIILFLHQWmHYLGHQFHRQZKLFKWKHMXU\             DDVDVZRUGWRVXEMHFWXQLRQPHPEHUVWRGLVFLSOLQH
FRXOGUHDVRQDEO\ILQGIRUWKHSODLQWLIIl,GDW                  ZKHQWKH\LQLWLDWHOHJDOSURFHHGLQJVZLWKRXWILUVWH[KDXVWLQJ
                                                                        XQLRQ UHPHGLHV UHJDUGOHVV RI ZKHWKHU WKH VXLW LQYROYHV
% +URPHW] SURSHUO\ H[KDXVWHG KLV XQLRQ UHPHGLHV                   LQWHUQDORUH[WHUQDOPDWWHUV
   EHIRUHILOLQJVXLWLQIHGHUDOFRXUW
                                                                          :HZLVKWRHPSKDVL]HWKDWRXUKROGLQJGRHVQRWSUHYHQW
   2QFURVVDSSHDOWKH,QWHUQDWLRQDODUJXHVWKDWWKHGLVWULFW          XQLRQVIURPHVWDEOLVKLQJDQGPDLQWDLQLQJHIIHFWLYHLQWHUQDO
FRXUW VKRXOG KDYH UHTXLUHG +URPHW] WR ILUVW H[KDXVW KLV         JULHYDQFHSURFHGXUHV7KLVFLUFXLWKDVPDGHFOHDUWKDWXQLRQV
LQWHUQDOXQLRQUHPHGLHVEHIRUHILOLQJVXLWLQIHGHUDOFRXUWWR          KDYHDULJKWWRSUHVFULEHDYDULHW\RILQWHUQDOSURFHGXUHVIRU
SURWHVW KLV H[SXOVLRQ  $ XQLRQ MXU\ H[SHOOHG +URPHW] RQ       UHYLHZLQJ WKH FODLPV RI WKHLU PHPEHUV  6HH *HGGHV Y
$XJXVW+URPHW]DSSHDOHGWKHYHUGLFWWRWKH*(%RQ             &KU\VOHU&RUS)GWK&LUm6XFKD
$XJXVW2Q1RYHPEHUWKH*(%DIILUPHG                SROLF\ SURYLGHV WKH XQLRQ ZLWK DQ LQLWLDO RSSRUWXQLW\ WR
+URPHW]jV H[SXOVLRQ  $W WKDW SRLQW +URPHW] KDG VSHQW          UHVROYH LQWHUQDO GLVSXWHV LWVHOI LI SRVVLEOH DYRLGLQJ ERWK
VOLJKWO\ RYHU WKUHH PRQWKV SXUVXLQJ KLV LQWHUQDO XQLRQ           XQGXH LQWHUIHUHQFH E\ WKH FRXUW LQ LQWHUQDO RUJDQL]DWLRQ
UHPHGLHV+HWKHQDEDQGRQHGWKHLQWHUQDOXQLRQSURFHVVDQG             PDWWHUVDQGWKHXQQHFHVVDU\DOORFDWLRQRISXEOLFUHVRXUFHVWR
VXEVHTXHQWO\ ILOHG VXLW LQ IHGHUDO GLVWULFW FRXUW LQ 0D\ RI
    +URPHW]Y,QWjO$VVjQRI        1RV         1RV          +URPHW]Y,QWjO$VVjQRI          
      %ULGJH&RQVWUXFWLRQHWDO                                                                   %ULGJH&RQVWUXFWLRQHWDO

WKH7KLUGDQG1LQWK&LUFXLWVKDYHREVHUYHGWKDWWKH6XSUHPH           7KH,QWHUQDWLRQDOPDLQWDLQVWKDW+URPHW]ZDVUHTXLUHG
&RXUWjV LQIHUHQFH LQ 0DULQH :RUNHUV WKDW WKH 1/5$jV            WRDSSHDOWRWKHQH[WOHYHORIXQLRQUHYLHZWKH*(&EHIRUH
SURWHFWLRQH[WHQGVVWULFWO\WRXQLRQPHPEHUVSXUVXLQJSXEOLF          FRPPHQFLQJOHJDOSURFHHGLQJVLQFRXUW:HGLVDJUHH
GRPDLQPDWWHUVLVXQGHUVWDQGDEOHRQO\LQWKHFRQWH[WRIWKH
1/5$ZKLFKZDVVSHFLILFDOO\GHVLJQHGWRUHJXODWHPDWWHUVLQ             $VRI1RYHPEHUZKHQ+URPHW]jVDSSHDOWRWKH
WKHSXEOLFGRPDLQ6HH3DZODNY*UHHQDZDOW)G           *(% ZDV GHQLHG WKH QH[W PHHWLQJ RI WKH *(& ZRXOG QRW
G&LU2SHUDWLQJ(QJLQHHUV/RFDO8QLRQ1R             KDYHWDNHQSODFHXQWLO$SULORI7KXVWRSXUVXHIXUWKHU
Y%XUURXJKV)GWK&LU                    LQWHUQDO XQLRQ UHYLHZ +URPHW] ZRXOG KDYH KDG WR ZDLW DW
                                                                      OHDVWHLJKWPRQWKVIURPKLVH[SXOVLRQEHIRUHILOLQJKLVIHGHUDO
  7KH /05'$ E\ FRQWUDVW ZDV mGHVLJQHG VSHFLILFDOO\ WR        VXLW7KLVFRXUWKDVKHOGWKDWm>D@XQLRQPHPEHULVQRW
UHJXODWHLQWHUQDOXQLRQDIIDLUVl6HH3DZODN)GDW       VWDWXWRULO\ UHTXLUHG WR SXUVXH D FODLP WKURXJK LQWHUQDO
%RWKFLUFXLWVFRQFOXGHGWKDWLWZRXOGEHDQRPDORXVLQOLJKW          SURFHGXUHVORQJHUWKDQIRXUPRQWKVEHIRUHLQVWLWXWLQJMXGLFLDO
RIWKDWSXUSRVHWRKROGWKDWWKHULJKWWRVXHFRQWDLQHGLQWKH       SURFHHGLQJVl'XQOHDY\Y/RFDO8QLWHG6WHHOZRUNHUV
/05'$GRHVQRWSURWHFWDXQLRQPHPEHUjVULJKWWREULQJ                 )G   WK &LU  FLWLQJ  86&
VXLWVFRQFHUQLQJLQWHUQDOPDWWHUV6HHLGKROGLQJWKDWWKH          D VHH DOVR 2UQHOODV Y 2DNOH\  )G 
/05'$ SURWHFWHG D XQLRQ PHPEHU DJDLQVW GLVFLSOLQDU\             WK&LUKROGLQJWKDWXQLRQUHPHGLHVKDGEHHQ
DFWLRQ WDNHQ LQ UHVSRQVH WR KLV ILOLQJ VXLW UHJDUGOHVV RI   DGHTXDWHO\H[KDXVWHGZKHQWKHUHPDLQLQJLQWUDXQLRQDSSHDO
ZKHWKHU WKH VXLW FRQFHUQHG DQ LQWHUQDO RU H[WHUQDO PDWWHU   ZRXOG KDYH RFFXUUHG RXWVLGH RI WKH VWDWXWRU\ IRXUPRQWK
%XUURXJKV)GDWVDPH:HILQGWKHGLVWLQFWLRQ           SHULRG+URPHW]WKHUHIRUHSURSHUO\H[KDXVWHGKLVLQWHUQDO
GUDZQ LQ WKHVH FDVHV WR EH SHUVXDVLYH DQG WKH GHIHQGDQWV    XQLRQUHPHGLHVEHIRUHEULQJLQJWKHSUHVHQWVXLW
KDYHEHHQXQDEOHWRFLWHDQ\FRQWUDU\DXWKRULW\
                                                                      & +URPHW]jV H[SXOVLRQ YLRODWHG KLV ULJKWV XQGHU WKH
   0RUHRYHU+URPHW]DUJXHVWKDW0DULQH:RUNHUVLVQRWRQO\              /05'$
FRQVLVWHQW ZLWK KLV SRVLWLRQ EXW DIILUPDWLYHO\ VXSSRUWV KLV
FODLPWKDWWKHULJKWWRVXHSURYLVLRQRIWKH/05'$SURKLELWV            6HFWLRQDRIWKH/05'$WLWOHGWKHm%LOORI5LJKWV
XQLRQVIURPGLVFLSOLQLQJPHPEHUVIRUOLWLJDWLQJFODLPVEHIRUH         RI0HPEHUVRI/DERU2UJDQL]DWLRQVlSURYLGHVWKHIROORZLQJ
H[KDXVWLQJWKHLQWHUQDOXQLRQJULHYDQFHSURFHVVUHJDUGOHVVRI        SURWHFWLRQ WR XQLRQ PHPEHUV LQLWLDWLQJ SURFHHGLQJV EHIRUH
WKH QDWXUH RI WKRVH FODLPV  7KH &RXUW LQ 0DULQH :RUNHUV    FRXUWVDQGDGPLQLVWUDWLYHERDUGV
GLVFXVVHGDRIWKH/05'$LQRUGHUWRVKHGOLJKWRQ
WKHSURWHFWLRQVDIIRUGHGXQLRQPHPEHUVXQGHUE$RI            1RODERURUJDQL]DWLRQVKDOOOLPLWWKHULJKWRIDQ\PHPEHU
WKH1/5$6LJQLILFDQWO\WKH&RXUWZURWHWKDWWKHIRXUPRQWK           WKHUHRI WR LQVWLWXWH DQ DFWLRQ LQ DQ\ FRXUW RU LQ D
H[KDXVWLRQUHTXLUHPHQWDOORZHGE\DmLVQRWDJUDQW           SURFHHGLQJ EHIRUH DQ\ DGPLQLVWUDWLYH DJHQF\   
RIDXWKRULW\WRXQLRQVPRUHILUPO\WRSROLFHWKHLUPHPEHUVEXW          3URYLGHG 7KDW DQ\ VXFK PHPEHU PD\ EH UHTXLUHG WR
DVWDWHPHQWRISROLF\WKDWWKHSXEOLFWULEXQDOVZKRVHDLGLV            H[KDXVW UHDVRQDEOH KHDULQJ SURFHGXUHV EXW QRW WR
LQYRNHG PD\ LQ WKHLU GLVFUHWLRQ VWD\ WKHLU KDQGV IRU IRXU      H[FHHG D IRXUPRQWK ODSVH RI WLPH ZLWKLQ VXFK
PRQWKV ZKLOH WKH DJJULHYHG SHUVRQ VHHNV UHOLHI ZLWKLQ WKH      RUJDQL]DWLRQ EHIRUH LQVWLWXWLQJ OHJDO RU DGPLQLVWUDWLYH
XQLRQl0DULQH:RUNHUV86DWHPSKDVLVDGGHG              SURFHHGLQJV DJDLQVW VXFK RUJDQL]DWLRQV RU DQ\ RIILFHU
                                                                        WKHUHRI
      +URPHW]Y,QWjO$VVjQRI      1RV         1RV            +URPHW]Y,QWjO$VVjQRI         
       %ULGJH&RQVWUXFWLRQHWDO                                                                   %ULGJH&RQVWUXFWLRQHWDO

86&DHPSKDVLVDGGHG7KHTXHVWLRQLQWKH         SHWLWLRQWKH1/5%IRUUHOLHIDVZHOO6HHHJ/RFDO
SUHVHQW FDVH LV ZKHWKHU XQGHU VHFWLRQ D RI WKH      ,QWjO8QLRQRI2SHUDWLQJ(QJLQHHUV1/5%
/05'$ D XQLRQ FDQ GLVFLSOLQH D PHPEHU ZKR GRHV QRW         
FRPSO\ZLWKWKHXQLRQjVIRXUPRQWKH[KDXVWLRQUHTXLUHPHQW
DVVHWIRUWKLQLWVFRQVWLWXWLRQ                                      %DODQFLQJDXQLRQPHPEHUjVULJKWRIDFFHVVWRWKH1/5%
                                                                     DJDLQVW D XQLRQjV ULJKW WR UHJXODWH LWV LQWHUQDO DIIDLUV WKH
  %RWK+URPHW]DQGWKHXQLRQGHIHQGDQWVEDVHWKHLURSSRVLQJ          6XSUHPH&RXUWFRQFOXGHGWKDWDXQLRQFRXOGQRWSHQDOL]HD
DQVZHUVWRWKLVTXHVWLRQRQWKH6XSUHPH&RXUWjVGHFLVLRQLQ          PHPEHUIRULQYRNLQJWKHSURWHFWLRQRIWKH1/5$ZKHUHWKH
1DWLRQDO /DERU 5HODWLRQV %RDUG Y ,QGXVWULDO 8QLRQ RI         PHPEHUjVFRPSODLQWSHUWDLQHGWRWKHmSXEOLFGRPDLQFRYHUHG
0DULQH 	 6KLSEXLOGLQJ :RUNHUV  86              E\ WKH >1/5$@l  0DULQH :RUNHUV  86 DW 
0DULQH:RUNHUV,QWKDWFDVH(GZLQ+ROGHUDPHPEHURI          6SHFLILFDOO\ WKH &RXUW KHOG WKDW mZKHUH WKH FRPSODLQW RU
WKH /RFDO  EUDQFK RI WKH 0DULQH :RUNHUV XQLRQ ILOHG D   JULHYDQFH GRHV QRW FRQFHUQ DQ LQWHUQDO XQLRQ PDWWHU EXW
FRPSODLQWEHIRUHWKH1DWLRQDO/DERU5HODWLRQV%RDUG1/5%           WRXFKHVDSDUWRIWKHSXEOLFGRPDLQFRYHUHGE\WKH>1/5$@
LQ ZKLFK KH REMHFWHG WR WKH FRQGXFW RI KLV ORFDO XQLRQjV   IDLOXUHWRUHVRUWWRDQ\LQWUDXQLRQJULHYDQFHSURFHGXUHLVQRW
SUHVLGHQW  6HH LG DW   3XUVXDQW WR WKH XQLRQjV       JURXQGIRUH[SXOVLRQIURPDXQLRQl,GHPSKDVLVDGGHG
FRQVWLWXWLRQ +ROGHU ZDV H[SHOOHG IRU ILOLQJ D FRPSODLQW
EHIRUHWKH1/5%ZLWKRXWILUVWH[KDXVWLQJKLVLQWHUQDOXQLRQ            /RFDODQGWKH,QWHUQDWLRQDOLQIHUIURPWKLVVWDWHPHQW
UHPHGLHV  +H WKHQ ILOHG D VHFRQG FKDUJH ZLWK WKH 1/5%    WKDW D XQLRQ FDQ OHJDOO\ SHQDOL]H D PHPEHU IRU IDLOLQJ WR
DUJXLQJ WKDW KLV XQLRQ KDG YLRODWHG  E$ RI WKH     H[KDXVWKLVLQWHUQDOUHPHGLHVZKHQKLVFRPSODLQWUHODWHVWRDQ
1DWLRQDO/DERU5HODWLRQV$FW1/5$E\GLVFLSOLQLQJKLPLQ           mLQWHUQDO XQLRQ PDWWHUl  ,G  7KH GLVWULFW FRXUW DJUHHG
UHWDOLDWLRQIRUKLVH[HUFLVHRIDSURWHFWHGDFWLYLW\ZLWKUHVSHFW    %HFDXVHLWFODVVLILHG+URPHW]jVGLVSXWHRYHUWKHVDOHRIWKH
WRKLVHPSOR\PHQW                                                 DXWRPRELOH DV DQ LQWHUQDO XQLRQ PDWWHU WKH GLVWULFW FRXUW
                                                                     FRQFOXGHG WKDW +URPHW]jV H[SXOVLRQ ZDV SHUPLWWHG XQGHU
    6HFWLRQE$SURYLGHVLQSDUW                             0DULQH:RUNHUV
    ,W VKDOO EH DQ XQIDLU ODERU SUDFWLFH IRU D ODERU          :H ILUVW QRWH WKDW WKH GLVWULFW FRXUWjV GHFLVLRQ LV QRW
    RUJDQL]DWLRQRULWVDJHQWVn                                      XQUHDVRQDEOH LI RQH IRFXVHV VROHO\ RQ WKH0DULQH :RUNHUV
                                                                     ODQJXDJHLWDOLFL]HGDERYH2QHFDQKDUGO\IDXOWWKHGLVWULFW
    WRUHVWUDLQRUFRHUFH$HPSOR\HHVLQWKHH[HUFLVHRI       FRXUWjV FRQFOXVLRQ WKDW WKH VDOH RI WKH DXWRPRELOH ZDV DQ
    WKHULJKWVJXDUDQWHHGLQVHFWLRQ>@3URYLGHG7KDWWKLV       LQWHUQDO XQLRQ PDWWHU DQG WKH LPSOLFDWLRQ RI WKH 6XSUHPH
    SDUDJUDSK VKDOO QRW LPSDLU WKH ULJKW RI D ODERU          &RXUWjVVWDWHPHQWLQ0DULQH:RUNHUVZRXOGVHHPWRDOORZD
    RUJDQL]DWLRQWRSUHVFULEHLWVRZQUXOHVZLWKUHVSHFWWRWKH      XQLRQWRGLVFLSOLQHPHPEHUVZKROLWLJDWHVXFKLQWHUQDOPDWWHUV
    DFTXLVLWLRQRUUHWHQWLRQRIPHPEHUVKLSWKHUHLQ           ZLWKRXWILUVWSXUVXLQJWKHXQLRQjVJULHYDQFHSURFHGXUHV
86&E$7KHUHIHUHQFHGULJKWVFRQWDLQHGLQ          7KHUH LV D NH\ GLVWLQFWLRQ KRZHYHU EHWZHHQ 0DULQH
LQFOXGHmWKHULJKWWRVHOIRUJDQL]DWLRQWRIRUPMRLQRU       :RUNHUVDQGWKHSUHVHQWFDVHWKDWZDVQRWFRQVLGHUHGE\WKH
DVVLVW ODERU RUJDQL]DWLRQV    DQG WR HQJDJH LQ RWKHU   GLVWULFWFRXUW7KHXQLRQPHPEHULQ0DULQH:RUNHUVEURXJKW
FRQFHUWHGDFWLYLWLHVIRUWKHSXUSRVHRIFROOHFWLYHEDUJDLQLQJRU     VXLWXQGHUE$RIWKH1/5$LQFRQWUDVWWR+URPHW]
RWKHUPXWXDODLGRUSURWHFWLRQl86&3ULRU     ZKRLQYRNHGWKHULJKWWRVXHSURYLVLRQRIWKH/05'$%RWK
1/5%GHFLVLRQVKDGKHOGWKDWHQFRPSDVVHGWKHULJKWWR
