           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


 81,7(' 67$7(6 2) $0(5,&$        ;
           3ODLQWLII$SSHOOHH     
                                   
                                      1R
            Y                     
                                    !
                                   
 0,&+$(/ $1*(/2 )/2:$/            
          'HIHQGDQW$SSHOODQW 
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW&RYLQJWRQ
 1Rn:LOOLDP2%HUWHOVPDQ'LVWULFWsXGJH
                  $UJXHG6HSWHPEHU
             'HFLGHGDQG)LOHG'HFHPEHU
  %HIRUH1255,6DQG'$8*+75(<&LUFXLWsXGJHV
              :,6(0$1'LVWULFWsXGJH

                       BBBBBBBBBBBBBBBBB
                            &2816(/
$5*8('  5RJHU 1 %UDGHQ 7+( /$:5(1&( ),50
&LQFLQQDWL 2KLR IRU $SSHOODQW  'DYLG %XQQLQJ
$66,67$1781,7('67$7(6$77251(<&RYLQJWRQ

    
     7KH +RQRUDEOH 7KRPDV $ :LVHPDQ sU 8QLWHG 6WDWHV 'LVWULFW
sXGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ



                                   
     8QLWHG6WDWHVY)ORZDO                       1R       1R                       8QLWHG6WDWHVY)ORZDO        

.HQWXFN\ IRU $SSHOOHH  21 %5,()  5RJHU 1 %UDGHQ         WKDWKHSRVVHVVHGNLORJUDPVRIFRFDLQH)ORZDOZRXOG
7+(/$:5(1&(),50&LQFLQQDWL2KLRIRU$SSHOODQW                   RQO\EHVXEMHFWWRWKHSHQDOW\SURYLVLRQVRIE%
'DYLG %XQQLQJ $66,67$17 81,7(' 67$7(6                            ZKLFKSUHVFULEHDPLQLPXPRIWHQ\HDUVDQGDPD[LPXPRI
$77251(<&RYLQJWRQ.HQWXFN\&KDUOHV3:LVGRPsU                OLIH)XUWKHUPRUHLIWKHJRYHUQPHQWFRXOGRQO\SURYHWKDW
$66,67$1781,7('67$7(6$77251(</H[LQJWRQ                          )ORZDOSRVVHVVHGOHVVWKDQJUDPVRIFRFDLQHKHZRXOG
.HQWXFN\IRU$SSHOOHH                                               RQO\ IDFH XS WR WKLUW\ \HDUV LPSULVRQPHQW XQGHU
                                                                       E&  $FFRUGLQJ WR sXVWLFH 7KRPDVj UHDVRQLQJ
                     BBBBBBBBBBBBBBBBB                                WKHVHDUHWKUHHGLIIHUHQWFULPHVZLWKWKUHHGLIIHULQJHOHPHQWV
                                                                      ZHLJKW RI GUXJV DQG ZLWK WKUHH VXEVWDQWLDOO\ GLIIHUHQW
                         23,1,21                                      SHQDOW\ VWUXFWXUHV  $FFRUGLQJO\ WKH SURVHFXWLRQ LV RQO\
                     BBBBBBBBBBBBBBBBB                                HQWLWOHG WR WKH SXQLVKPHQW SURYLVLRQV RI WKH FULPH ZKRVH
                                                                      HOHPHQWVLWKDVSURYHGWRDMXU\EH\RQGDUHDVRQDEOHGRXEW
   :,6(0$1'LVWULFWsXGJH'HIHQGDQW$SSHOODQW0LFKDHO              ,W KDV \HW WR SURYH WKH ZHLJKW RI WKH FRFDLQH LQ )ORZDOjV
$QJHOR )ORZDO DSSHDOV IURP WKH MXGJPHQW HQWHUHG RQ             SRVVHVVLRQWRDMXU\DQGWKHMXU\jVILQGLQJVWKXVIDUQHLWKHU
0DUFKLQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH           UHTXLUHQRUDOORZDPDQGDWRU\SHQDOW\RIOLIHLPSULVRQPHQW
(DVWHUQ'LVWULFWRI.HQWXFN\ZKLFKVHQWHQFHGKLPWROLIHLQ          ZLWKRXWWKHSRVVLELOLW\RIUHOHDVH
SULVRQZLWKRXWSRVVLELOLW\RISDUROHIRUSRVVHVVLRQZLWKLQWHQW
WR GLVWULEXWH ILYH SRLQW WZR  NLORJUDPV RI FRFDLQH LQ                                   ,9
YLRODWLRQRI86&D)ORZDODUJXHVWKDWXQGHU
%RQG Y 8QLWHG 6WDWHV  86   6&W         7KRXJKWKHVHDUFKRI)ORZDOjVOXJJDJHGLGQRWYLRODWHKLV
/(GGWKHJRYHUQPHQWjVVHDUFKRIKLVOXJJDJH            )RXUWK$PHQGPHQWULJKWVXQGHU%RQGKHZDVHQWLWOHGWRKDYH
DWDQDLUSRUWWHUPLQDOYLRODWHGKLV)RXUWK$PHQGPHQWULJKWV          DMXU\GHWHUPLQHEH\RQGDUHDVRQDEOHGRXEWWKHZHLJKWRIWKH
+HDOVRDUJXHVWKDWXQGHU$SSUHQGLY1HZsHUVH\BBB86            GUXJVKHSRVVHVVHG2QDSSHDOKRZHYHU)ORZDOKDVDUJXHG
BBB  6&W   /(GG   WKH GLVWULFW    WKDWWKHGUXJVKHSRVVHVVHGZHLJKHGNLORJUDPV,IWKH
FRXUWHUUHGLQQRWOHWWLQJWKHMXU\GHWHUPLQHWKHZHLJKWRIWKH       SDUWLHVDJUHHWRVHQWHQFLQJXQGHU86&E%
FRFDLQHKHSRVVHVVHG                                                ZKLFKDSSOLHVWRGUXJVWKDWZHLJKPRUHWKDQJUDPVEXW
                                                                      OHVVWKDQILYHNLORJUDPVWKHGLVWULFWFRXUWQHHGQRWVXEPLWWKH
  7KH VHDUFK RI )ORZDOjV OXJJDJH ZDV QRW XQODZIXO XQGHU       LVVXHRIWKHZHLJKWRIWKHGUXJVWRWKHMXU\EXWLQVWHDGFDQ
%RQG+RZHYHUWKHGLVWULFWFRXUWHUUHGLQQRWDOORZLQJWKH          H[HUFLVH LWV GLVFUHWLRQ DQG VHQWHQFH )ORZDO XQGHU WKDW
MXU\WRGHWHUPLQHEH\RQGDUHDVRQDEOHGRXEWWKHZHLJKWRIWKH         SURYLVLRQ+HQFHZH5(9(56(WKHGLVWULFWFRXUWMXGJHjV
FRFDLQH)ORZDOSRVVHVVHGZLWKLQWHQWWRGLVWULEXWH+HQFHWKH       GHWHUPLQDWLRQRIWKHZHLJKWRIWKHGUXJVDQG5(0$1'WKH
FDVHLV5(9(56('DQG5(0$1'('                                        FDVH IRU IXUWKHU SURFHHGLQJV QRW LQFRQVLVWHQW ZLWK WKLV
                                                                      RSLQLRQ
                                ,
  2Q 0D\   EHWZHHQ  DQG  DP
'HIHQGDQW$SSHOODQW 0LFKDHO $QJHOR )ORZDO ZDV SDVVLQJ
WKURXJKWKH*UHDWHU&LQFLQQDWLo1RUWKHUQ.HQWXFN\$LUSRUWRQ
KLV ZD\ IURP /RV $QJHOHV &DOLIRUQLD WR )RUW :D\QH
,QGLDQD$ERXWWKLVWLPH/LHXWHQDQW*D\OH%ODFNEXUQDGUXJ
WDVNIRUFHRIILFHUUHFHLYHGZRUGDERXWDSDVVHQJHUZKRZDV
       8QLWHG6WDWHVY)ORZDO                          1R        1R                       8QLWHG6WDWHVY)ORZDO         

  sXVWLFH7KRPDVjFRQFXUULQJRSLQLRQLQ$SSUHQGLZKLFK                     RQ KLV ZD\ IURP /RV $QJHOHV WR )RUW :D\QH DQG ZKR
DUJXHVIRUDEURDGHUUXOHWKDQWKDWDGRSWHGE\WKHPDMRULW\LV              PDWFKHGDGUXJFRXULHUSURILOH
LQIRUPDWLYHRQWKLVLVVXH
                                                                               /LHXWHQDQW %ODFNEXUQ 2IILFHU %DXHUOH DOVR D GUXJ WDVN
     >$@mFULPHlLQFOXGHVHYHU\IDFWWKDWLVE\ODZDEDVLVIRU              IRUFHRIILFHUDQG*DU\&XUU\D6SHFLDO$JHQWIRUWKH'($
     LPSRVLQJRULQFUHDVLQJSXQLVKPHQWLQFRQWUDVWZLWKD                   ORFDWHGWZRSLHFHVRIOXJJDJHPDWFKLQJWKHFODLPQXPEHUV
     IDFW WKDW PLWLJDWHV SXQLVKPHQW  7KXV LI D OHJLVODWXUH         DQG  DW WKH DLUOLQH EDJJDJH DUHD  7KH OXJJDJH
     GHILQHVVRPHFRUHFULPHDQGWKHQSURYLGHVIRULQFUHDVLQJ                EHORQJHG WR )ORZDO  %RWK SLHFHV RI OXJJDJH ZHUH ORFNHG
     SXQLVKPHQW RI WKDW FULPH XSRQ D ILQGLQJ RI VRPH                 7KHRIILFHUVVKRRNWKHOXJJDJHWRVHHLIWKHUHZDVPRYHPHQW
     DJJUDYDWLQJIDFWRUoRIZKDWHYHUVRUWLQFOXGLQJWKHIDFWRI              DQGSXVKHGWKHVLGHVRIWKHOXJJDJH7KH\GLGQRWGLVFRYHU
     D SULRU FRQYLFWLRQoWKH FRUH FULPH DQG WKH DJJUDYDWLQJ            DQ\WKLQJVXVSLFLRXV
     IDFWWRJHWKHUFRQVWLWXWHDQDJJUDYDWHGFULPHMXVWDVPXFK
     DVJUDQGODUFHQ\LVDQDJJUDYDWHGIRUPRISHWLWODUFHQ\                  /LHXWHQDQW %ODFNEXUQ VWD\HG ZLWK WKH OXJJDJH LQ WKH
     7KH DJJUDYDWLQJ IDFW LV DQ HOHPHQW RI WKH DJJUDYDWHG            EDJJDJHFODLPDUHDZKLOH2IILFHU%DXHUOHDQG$JHQW&XUU\
     FULPH6LPLODUO\LIWKHOHJLVODWXUHUDWKHUWKDQFUHDWLQJ             UHWXUQHG WR WKH DLUSRUW WHUPLQDO WR ORFDWH )ORZDO  2IILFHU
     JUDGHV RI D FULPH KDV SURYLGHG IRU VHWWLQJ WKH                 0LNH(YDQVDQRWKHUGUXJWDVNIRUFHRIILFHUDUULYHGLQWKH
     SXQLVKPHQWRIDFULPHEDVHGRQVRPHIDFWoVXFKDVDILQH                 OXJJDJHDUHDZLWKDGUXJVQLIILQJGRJ7KHGRJGLGQRWUHDFW
     WKDWLVSURSRUWLRQDOWRWKHYDOXHRIWKHVWROHQJRRGVoWKDW              RULQGLFDWHWKDWWKHOXJJDJHFRQWDLQHGGUXJV2IILFHU%DXHUOH
     IDFWLVDOVRDQHOHPHQW2QHQHHGRQO\ORRNWRWKH               DQG$JHQW&XUU\NQHZWKLVEHIRUHWDONLQJWR)ORZDOEXWGLG
     NLQG GHJUHH RU UDQJH RI SXQLVKPHQW WR ZKLFK WKH               QRWLQIRUP)ORZDORIWKHGRJjVUHDFWLRQ
     SURVHFXWLRQ LV E\ ODZ HQWLWOHG IRU D JLYHQ VHW RI IDFWV
     (DFKIDFWQHFHVVDU\IRUWKDWHQWLWOHPHQWLVDQHOHPHQW                  $FFRUGLQJWR2IILFHU%DXHUOHjVWHVWLPRQ\)ORZDOVWDUWHG
                                                                             GRZQWKHERDUGLQJUDPSWRERDUGWKHDLUSODQHDQG2IILFHU
6&WDW7KRPDVsFRQFXUULQJRSLQLRQ6FDOLD               %DXHUOHDQG$JHQW&XUU\IROORZHGDQGVWRSSHGKLP2IILFHU
s MRLQLQJ  ,Q )ORZDOjV FDVH WKH LQGLFWPHQW LWVHOI DV          %DXHUOHLGHQWLILHGKLPVHOIWR)ORZDODQGWROG)ORZDOWKDWKH
VXEPLWWHGWRWKHMXU\VSHFLILHGWKHDPRXQWRIGUXJVDOOHJHG                 DQG$JHQW&XUU\KDGVHHQ)ORZDOjVOXJJDJHDQGWKDWLWORRNHG
WREHLQ)ORZDOjVSRVVHVVLRQ8OWLPDWHO\WRSURYHWKDW)ORZDO              VXVSLFLRXV2IILFHU%DXHUOHDVNHG)ORZDOLIKHKDGSDFNHG
ZDVJXLOW\RIDFULPHXQGHUE$WKHJRYHUQPHQW                   WKH EDJV WR ZKLFK )ORZDO UHVSRQGHG KH KDG  +H WKHQ
QHHGHG WR FRQYLQFH D MXU\ EH\RQG D UHDVRQDEOH GRXEW WKDW            UHTXHVWHG WR VHDUFK )ORZDOjV OXJJDJH  )ORZDO FRQVHQWHG
)ORZDOSRVVHVVHGPRUHWKDQILYHNLORJUDPVRIFRFDLQHMXVWDV                2IILFHU%DXHUOHDVNHGLI)ORZDOKDGWKHNH\WRWKHOXJJDJH
DOOHJHGLQWKHLQGLFWPHQW,IWKHJRYHUQPHQWFRXOGRQO\SURYH               )ORZDOGLGQRWEXWKHDJDLQFRQVHQWHGWRWKHVHDUFKRIWKH
                                                                             OXJJDJHVRORQJDVWKHRIILFHUVGLGQRWGDPDJHLW

LQ WKLV FDVH FDQQRW VWDQG $ MXU\ GLG QRW PDNH D VSHFLDO ILQGLQJ DV WR WKH
                                                                               2IILFHU(YDQVVHDUFKHG)ORZDOjVOXJJDJHDQGIRXQGILYH
ZHLJKW RI WKH GUXJV )XUWKHUPRUH )ORZDO GLG QRW UHFHLYH WKH VWDWXWRU\       EXQGOHVRIZKDWDSSHDUHGWREHQDUFRWLFV$SSUR[LPDWHO\D
PLQLPXP IRU VLPSOH SRVVHVVLRQ ,QVWHDG KH UHFHLYHG D SHQDOW\ RI OLIH        PLQXWHODWHU/LHXWHQDQW%ODFNEXUQUHWXUQHGWRWKHWHUPLQDO
ZLWKRXW SRVVLELOLW\ RI UHOHDVH WKDW ZDV PDQGDWRU\ XQGHU  86&            DQGDUUHVWHG)ORZDO)ORZDOZDVLQGLFWHGRQsXQH
 E$ EXW WKDW ZRXOG QRW KDYH EHHQ PDQGDWRU\ XQGHU WKH RWKHU       IRUSRVVHVVLRQZLWKLQWHQWWRGLVWULEXWHmDSSUR[LPDWHO\ILYH
UHOHYDQW SURYLVLRQV 3XW DQRWKHU ZD\ WKH GLVWULFW FRXUW JDYH )ORZDO D
PDQGDWRU\ PD[LPXP VHQWHQFH WKDW PLJKW QRW KDYH DFWXDOO\ EHHQ
                                                                             SRLQWWZRNLORJUDPVRIFRFDLQHl)ORZDOSOHGQRWJXLOW\
PDQGDWRU\ RU HYHQ SHUPLVVLEOH KDG WKH GLVWULFW FRXUW SURSHUO\ VXEPLWWHG
                                                                             EXWDMXU\IRXQG)ORZDOJXLOW\RISRVVHVVLRQZLWKLQWHQWWR
WKH LVVXH RI WKH GUXJjV ZHLJKW WR WKH MXU\                                  GLVWULEXWHFRFDLQH
      8QLWHG6WDWHVY)ORZDO                         1R       1R                            8QLWHG6WDWHVY)ORZDO            

  2Q0D\DSROLFHRIILFHUKDGIRXQGWKHZHLJKWRI              E$7KHJRYHUQPHQWLVDOVRFRUUHFWLQQRWLQJWKDW
WKH FRFDLQH WR EH DSSUR[LPDWHO\  NLORJUDPV ZLWK LWV           DUHSHDWRIIHQGHUZKRSRVVHVVHVNLORJUDPVRIFRFDLQH
SDFNDJLQJ$OVREHWZHHQ0D\DQGsXO\               FDQ UHFHLYH OLIH LPSULVRQPHQW XQGHU  86&
$QGUHD0LFKLHOVDFKHPLVWZLWKWKH'($KDGZHLJKHGWKH                 E%+RZHYHUVXFKDSHQDOW\LVQRWPDQGDWRU\
FRFDLQHZLWKLWVSDFNDJLQJDQGKDGFRQFOXGHGLWVJURVVZHLJKW            XQGHUWKHODWWHUSURYLVLRQ7KLVGLIIHUHQFHLVVLJQLILFDQWLQ
ZDV  NLORJUDPV  0LFKLHOV VXVSHFWHG KHU ZHLJKW               WKLVFDVHEHFDXVHWKHWULDOMXGJHjVGHWHUPLQDWLRQRIWKHZHLJKW
GHWHUPLQDWLRQGLIIHUHGEHFDXVHVKHKDGDPRUHDFFXUDWHVFDOH             RIWKHGUXJVWRRNDZD\DQ\GLVFUHWLRQLQWHUPVRILPSRVLQJD
RUEHFDXVHWKHRIILFHUGLGQRWZHLJKWKHGUXJVZLWKWKHIRXU             VKRUWHUVHQWHQFH,WLVQRWDIRUHJRQHFRQFOXVLRQWKDWWKHWULDO
HYLGHQFHHQYHORSHVWKDWZHUHDIIL[HGZLWKHYLGHQFHVWLFNHUV             MXGJH ZRXOG KDYH VHQWHQFHG )ORZDO WR OLIH ZLWKRXW WKH
DV VKH KDG  6KH WHVWLILHG VKH ZHLJKHG WKH FRFDLQH E\ ILUVW   SRVVLELOLW\ RI UHOHDVH LI D MXU\ KDG GHWHUPLQHG WKH GUXJV
ZHLJKLQJWKHHQWLUHSDFNDJHE\WKHQZHLJKLQJHDFKEULFNRI              ZHLJKHGNLORJUDPV,QIDFWLIWKHMXU\KDGGHWHUPLQHG
FRFDLQHDQGE\WKHQHPSW\LQJWKHSDFNDJHDQGZHLJKLQJWKH               WKDWWKHGUXJVZHLJKHGOHVVWKDQJUDPVDOLIHVHQWHQFH
HPSW\SDFNDJH6KHGHWHUPLQHGWKHQHWZHLJKWRIWKHFRFDLQH             ZRXOG QRW KDYH HYHQ EHHQ DQ RSWLRQ XQGHU  86&
WREHNLORJUDPV6KHDOVRQRWHGVKHXVHGDERXWHLJKW              E&7KHMXGJHjVGHWHUPLQDWLRQHIIHFWLYHO\OLPLWHG
JUDPV RI WKH FRFDLQH DV D VDPSOH IRU DQDO\VLV  6KH            WKHUDQJHRIDSSOLFDEOHSHQDOWLHVDQGGHSULYHG)ORZDORIWKH
GHWHUPLQHG WKH ZHLJKW RI WKH VDPSOH E\ UHZHLJKLQJ WKH            RSSRUWXQLW\WRUHFHLYHOHVVWKDQOLIHLPSULVRQPHQWZLWKRXWWKH
UHPDLQLQJFRFDLQHDIWHUWKHVDPSOHKDGEHHQUHPRYHG2Q                 SRVVLELOLW\RIUHOHDVH
6HSWHPEHU%ULDQ0DORQH\DQRWKHU'($IRUHQVLF
FKHPLVW GHWHUPLQHG WKH ZHLJKW RI WKH FRFDLQH ZDV 
NLORJUDPV+HWHVWLILHGKHZHLJKHGWKHEDJDQGWKHSRZGHU                   
                                                                              7KH (LJKWK &LUFXLW KDV UHFHQWO\ FRQVLGHUHG WKH HIIHFW RI
DQGWKHQZHLJKHGWKHEDJE\LWVHOIWKRXJKKHGLGQRWIDFWRULQ                                                                            $SSUHQGL
                                                                         RQ  86&   $OWKRXJK LW KDG SUHYLRXVO\ KHOG WKDW WKH TXDQWLW\ RI
WKHDPRXQWUHPRYHGE\0LFKLHOVIRUWHVWLQJ                              GUXJV XQGHU   ZDV D VHQWHQFLQJ IDFWRU WKDW FRXOG EH GHFLGHG E\ D
                                                                         MXGJH WKH (LJKWK &LUFXLW LQ OLJKW RI $SSUHQGL KDV QRWHG WKDW D MXGJH FDQ
  7KHGLVWULFWFRXUWIRXQG)ORZDOjVFRFDLQHZHLJKHG                RQO\ LPSRVH SHQDOWLHV WKDW IDOO ZLWKLQ WKH VWDWXWRU\ UDQJH DXWKRUL]HG E\ WKH

NLORJUDPV DQG SXUVXDQW WR  86&  E$              MXU\jV YHUGLFW 8QLWHG 6WDWHV Y $JXD\D'HOJDGR  )G   :/

VHQWHQFHG)ORZDOWROLIHLQSULVRQZLWKRXWWKHSRVVLELOLW\RI             WK &LU        ,Q $JXD\D'HOJDGR WKH FRXUW XSKHOG D
                                                                         FRQYLFWLRQ XQGHU   EHFDXVH WKH WULDO MXGJH KDG VHQWHQFHG WKH
UHOHDVH*LYHQWKDW)ORZDOKDGWZRSULRUIHORQ\FRQYLFWLRQV            GHIHQGDQW WR WKH DEVROXWH VWDWXWRU\ PLQLPXP WKDW ZDV DSSOLFDEOH
WKH VHQWHQFH RI OLIH ZLWKRXW UHOHDVH ZDV PDQGDWRU\  2Q         UHJDUGOHVV RI GUXJ TXDQWLW\ 7KH FRXUW H[SODLQHG WKDW VXFK D SHQDOW\ ZDV
DSSHDOZHIRXQGWKDWLQVWHDGRIPDNLQJDUHOLDEOHFRQFOXVLRQ            DSSURSULDWH EHFDXVH LW IHOO ZLWKLQ WKH UDQJH VSHFLILHG IRU WKH FULPH IRU
RQWKHEDVLVRIWKHHYLGHQFHEHIRUHLWWKHGLVWULFWFRXUWKDG           ZKLFK WKH MXU\ KDG FRQYLFWHG WKH GHIHQGDQW 7KH (LJKWK &LUFXLW UHLWHUDWHG
DUELWUDULO\EDVHGWKHFRFDLQHjVZHLJKWRQWKHDPRXQW)ORZDO              WKH VDPH SULQFLSOH LQ 8QLWHG 6WDWHV Y 6KHSSDUG  )G  WK &LU
                                                                          7KH FRXUW DJDLQ XSKHOG D FRQYLFWLRQ XQGHU   LQ WKLV FDVH
KDGLQWHQGHGWRSRVVHVV86Y)ORZDO)G              EHFDXVH WKH LQGLFWPHQW KDG DOOHJHG WKH GUXJ W\SH DQG TXDQWLW\ DQG
WK&LU:HUHPDQGHGWKHFDVHWRWKHGLVWULFWFRXUW             EHFDXVH DFFRUGLQJ WR D VSHFLDO ILQGLQJ WKH MXU\ KDG XQDQLPRXVO\ IRXQG
IRUUHVHQWHQFLQJ,G                                                EH\RQG D UHDVRQDEOH GRXEW WKDW WKH GHIHQGDQW KDG SRVVHVVHG WKH TXDQWLW\
                                                                         RI GUXJV FKDUJHG LQ WKH LQGLFWPHQW ,G DW  $JDLQ WKRXJK WKH FRXUW
  2Q UHPDQG 0LFKLHOV ZDV WKH RQO\ ZLWQHVV FDOOHG  7KH         QRWHG WKDW D MXGJHjV GHFLVLRQ WR LPSRVH D VWDWXWRU\ PLQLPXP LUUHVSHFWLYH
GLVWULFWFRXUWPDGHWKHIROORZLQJILQGLQJV                              RI GUXJ TXDQWLW\ FRXOG IDOO ZLWKLQ WKH FRQVWLWXWLRQDO OLPLWV RI $SSUHQGL
                                                                         ,G DW  Q ,Q ERWK FDVHV KRZHYHU WKH (LJKWK &LUFXLW QRWHG WKDW LW LV
                                                                         LPSURSHU IRU D MXGJH WR GHWHUPLQH DQ\ IDFWV RWKHU WKDQ D SULRU FRQYLFWLRQ
    7KH &RXUW ILQGV WKH ZHLJKW RI WKH FRFDLQH ZDV          WKDW ZRXOG LQFUHDVH WKH SHQDOW\ UDQJH EH\RQG WKDW DSSOLFDEOH WR WKH FULPH
    JUDPVE\DSUHSRQGHUDQFHRIWKHHYLGHQFH7KHUHIRUH                IRU ZKLFK WKH MXU\ KDV FRQYLFWHG WKH GHIHQGDQW
                                                                              8QOLNH WKH VHQWHQFHV LQ $JXD\D'HOJDGR DQG 6KHSSDUG WKH VHQWHQFH
       8QLWHG6WDWHVY)ORZDO                              1R         1R                         8QLWHG6WDWHVY)ORZDO         

E$,IKHSRVVHVVHGOHVVWKDQILYHNLORJUDPVEXW                      WKHVHQWHQFHLQWKLVFDVHLVLPSRVHGWRSURPRWHUHVSHFW
PRUHWKDQJUDPVKHFRXOGEHVHQWHQFHGIURPWHQ\HDUVWR                       IRU WKH ODZ SURYLGH MXVW SXQLVKPHQW DQG DFW DV D
OLIH86&E%)LQDOO\LIKHSRVVHVVHGOHVV                     GHWHUUHQW WR IXWXUH FULPLQDO DFWLYLW\  7KH &RXUW ZLOO
WKDQJUDPVKHFRXOGEHLPSULVRQHGDVORQJDVWKLUW\\HDUV                     IXUWKHU ILQG LW ZDV PRUH WKDQ  JUDPV EH\RQG D
EXW ZRXOG QRW IDFH D VWDWXWRU\ PLQLPXP  86&                          UHDVRQDEOHGRXEWDOWKRXJKWKDWjVSUREDEO\DVXSHUIOXRXV
 E&  %HFDXVH WKH DPRXQW RI WKH GUXJV DW LVVXH                ILQGLQJ
GHWHUPLQHG WKH DSSURSULDWH VWDWXWRU\ SXQLVKPHQW D MXU\
VKRXOG KDYH GHWHUPLQHG  WKH ZHLJKW RI WKH GUXJV EH\RQG D                7KHFRXUWDJDLQVHQWHQFHG)ORZDOWRWKHPDQGDWRU\PD[LPXP
UHDVRQDEOHGRXEW                                                             SHQDOW\ RI OLIH LQ SULVRQ ZLWKRXW WKH SRVVLELOLW\ RI UHOHDVH
                                                                                 7KLVDSSHDOIROORZHG
   7KHJRYHUQPHQWDUJXHVWKHSHQDOW\LPSRVHGLQWKLVFDVH
GRHV QRW H[FHHG WKH mSUHVFULEHG VWDWXWRU\ PD[LPXPl DV                                                      ,,
UHTXLUHG EHIRUH $SSUHQGL WDNHV HIIHFW  $FFRUGLQJ WR WKH
JRYHUQPHQWWKHRQO\GLVSXWHLVZKHWKHUWKHGUXJVZHLJKHG                          )ORZDODUJXHVWKDW%RQGY8QLWHG6WDWHV86
 NLORJUDPV RU PRUH WKDQ ILYH NLORJUDPV DQG OLIH                    6&W/(GGIRUELGVJRYHUQPHQW
LPSULVRQPHQWLVDQDSSURSULDWHSHQDOW\LI)ORZDOSRVVHVVHG                       DJHQWVIURPVHL]LQJVRPHRQHjVOXJJDJHDIWHUPDQLSXODWLQJLW
HLWKHU DPRXQW  $V H[SODLQHG OLIH LPSULVRQPHQW ZLWKRXW                   LQ DQ H[SORUDWRU\ PDQQHU  $FFRUGLQJ WR )ORZDO EHFDXVH
UHOHDVH LV PDQGDWRU\ IRU )ORZDO XQGHU  86&                           2IILFHU%DXHUOHDQG$JHQW&XUU\SLFNHGXS%RQGjVOXJJDJH
                                                                                 IURPWKHFRQYH\RUEHOWVKRRNWKHOXJJDJHDQGSXVKHGWKH
                                                                                 VLGHVRIWKHOXJJDJHLQDPDQQHUFRQVWLWXWLQJDQLOOHJDOVHDUFK
                                                                                WKLV&RXUWVKRXOGVXSSUHVVWKHLQFULPLQDWLQJHYLGHQFHIRXQG
      8QGHU  86&  E$& GUXJ RIIHQVHV WKDW UHVXOW LQ
                                                                                 WKHUHLQ
GHDWK RU ERGLO\ LQMXU\ DOVR UHFHLYH LQFUHDVHG VHQWHQFLQJ UDQJHV :H KDYH
DOUHDG\ GHWHUPLQHG WKDW SXUVXDQW WR $SSUHQGL WKH TXHVWLRQ RI ZKHWKHU
GHDWK RU ERGLO\ LQMXU\ KDV UHVXOWHG IURP D GUXJ RIIHQVH PXVW EH SURYHG
                                                                                   ,Q%RQGDERUGHUSDWURODJHQWERDUGHGDEXVLQ7H[DVWR
EH\RQG D UHDVRQDEOH GRXEW WR WKH ILQGHU RI IDFW ,Q 8QLWHG 6WDWHV Y             FKHFNWKHLPPLJUDWLRQVWDWXVRILWVSDVVHQJHUV6&WDW
5HEPDQQ BBB )G BBB  :/   )HG $SS 3 WK                  $V KH H[LWHG WKH EXV WKH DJHQW VTXHH]HG WKH VRIW
&LU  WKH GHIHQGDQW SOHG JXLOW\ WR GLVWULEXWLRQ RI KHURLQ LQ YLRODWLRQ     OXJJDJHWKHSDVVHQJHUVKDGSODFHGLQWKHRYHUKHDGVWRUDJH
RI  86&  D DQG IDFHG XS WR WZHQW\ \HDUV LPSULVRQPHQW 7KH
                                                                                 VSDFHDQGIHOWDmEULFNOLNHlREMHFWLQRQHRIWKHEDJV,G
GLVWULFW FRXUW KRZHYHU IRXQG E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW D
GHDWK KDG UHVXOWHG IURP WKH GLVWULEXWLRQ 7KHUHIRUH SXUVXDQW WR WKH
                                                                                 $IWHU%RQGDGPLWWHGWKHEDJZDVKLVDQGFRQVHQWHGWRKDYH
SURYLVLRQV RI  86&  E& WKH GLVWULFW FRXUW LQFUHDVHG WKH         WKH EDJ VHDUFKHG WKH DJHQW GLVFRYHUHG D mEULFNl RI LOOHJDO
VHQWHQFH WR OLIH :H UHYHUVHG QRWLQJ WKDW  86&   FDOOV IRU D           GUXJV,GDW%RQGDUJXHGWKHVHDUFKZDVLOOHJDOXQGHU
IDFWXDO GHWHUPLQDWLRQ RI ZKHWKHU WKH GLVWULEXWLRQ RI GUXJV FDXVHV GHDWK          WKH)RXUWK$PHQGPHQWEXWWKHGLVWULFWFRXUWDQGWKHFRXUWRI
DQG WKDW WKLV IDFWXDO GHWHUPLQDWLRQ VLJQLILFDQWO\ LPSDFWV WKH PD[LPXP            DSSHDOVUHIXVHGWRVXSSUHVVWKHHYLGHQFHRQWKRVHJURXQGV
SHQDOW\ $OWKRXJK WKH GHIHQGDQW KDG ZDLYHG KHU ULJKW WR D MXU\ WULDO DV
SDUW RI KHU SOHD DJUHHPHQW VKH KDG QRW ZDLYHG KHU ULJKW WR KDYH WKLV
                                                                                 ,G7KH6XSUHPH&RXUWDJUHHGZLWK%RQGQRWLQJWKDW%RQG
HOHPHQW RI WKH RIIHQVH SURYHG EH\RQG D UHDVRQDEOH GRXEW WR WKH WULHU RI          KDGVSHFLILFDOO\DWWHPSWHGWRSUHVHUYHKLVSULYDF\E\XVLQJDQ
IDFW $V ZH QRWHG LW ZRXOG KDYH YLRODWHG WKH FRQVWLWXWLRQDO XQGHUSLQQLQJV       RSDTXHEDJDQGE\SODFLQJWKHEDJRYHUKLVVHDW,GDW
RI WKH GHIHQGDQWjV ULJKW WR WULDO WR DOORZ D GHIHQGDQW ZKR SOHDGV JXLOW\ WR      7KH &RXUW DOVR QRWHG WKDW HYHQ WKRXJK D EXV SDVVHQJHU
SK\VLFDO GLVWULEXWLRQ WR EH VHQWHQFHG WR OLIH XSRQ D GLVWULFW FRXUWjV ILQGLQJ   SUREDEO\H[SHFWVKLVEDJWREHKDQGOHGE\RWKHUSDVVHQJHUVRU
RQO\ E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW D GHDWK KDG UHVXOWHG IURP
WKH FKDUJHG FULPH 7KH KROGLQJ WRGD\ UHDIILUPV WKH ORJLF RI      #0s2,33    D
                                                                                 EXV HPSOR\HHV KH GRHV QRW UHDVRQDEO\ H[SHFW WKDW DQ\RQH
IDFW WKDW LQFUHDVHV WKH DSSOLFDEOH VWDWXWRU\ SHQDOW\ UDQJH IRU D SDUWLFXODU
                                                                                 ZLOOIHHORUPDQLSXODWHWKHEDJLQDQH[SORUDWRU\PDQQHU,G
FULPH PXVW EH SURYHG EH\RQG D UHDVRQDEOH GRXEW WR WKH WULHU RI IDFW             8OWLPDWHO\WKH&RXUWIRXQGWKHDJHQWjVSK\VLFDOPDQLSXODWLRQ
       8QLWHG6WDWHVY)ORZDO                         1R        1R                        8QLWHG6WDWHVY)ORZDO        

RI WKH SDVVHQJHUjV FDUU\RQ OXJJDJH YLRODWHG WKH )RXUWK               ,Q $SSUHQGL WKH GHIHQGDQW HQWHUHG D SOHD DJUHHPHQW IRU
$PHQGPHQWjVSURVFULSWLRQDJDLQVWXQUHDVRQDEOHVHDUFKHV,G               SRVVHVVLRQRIDILUHDUPIRUDQXQODZIXOSXUSRVH6&WDW
DW                                                                   7KHPD[LPXPSHQDOW\IRUWKDWFULPHZDVWHQ\HDUVEXW
                                                                           WKHVWDWHKDWHFULPHVWDWXWHDOORZHGWKHWULDOMXGJHWRHQKDQFH
  7KH JRYHUQPHQW DVVHUWV WKDW )ORZDOjV H[SHFWDWLRQ RI                WKHSHQDOW\LIKHIRXQGE\DSUHSRQGHUDQFHRIWKHHYLGHQFH
SULYDF\ZDVPXFKORZHUWKDQ%RQGjVEHFDXVH)ORZDOWXUQHG                   WKDWWKHGHIHQGDQWFRPPLWWHGWKHFULPHZLWKWKHSXUSRVHRI
KLV OXJJDJH RYHU WR WKH FXVWRG\ DQG FRQWURO RI WKH DLUOLQH      LQWLPLGDWLQJDSHUVRQRUJURXSRQWKHEDVLVRIUDFH,G DW
:LWKRXWUHVROYLQJWKDWSRLQWWKHVHDUFKRI)ORZDOjVOXJJDJH               $WWULDODQGRQDSSHDOWKHGHIHQGDQWDUJXHGWKHWULDO
ZDV QRW XQFRQVWLWXWLRQDO XQGHU %RQG  7KH RIILFHUV                  MXGJHVKRXOGKDYHVXEPLWWHGWKHLVVXHRIUDFLDOELDVWRDMXU\
LQYHVWLJDWHG)ORZDOjVOXJJDJHEHFDXVHKHPDWFKHGWKHGUXJ                  ,GDW7KHWULDOFRXUWDQGWKHDSSHOODWHFRXUWGLVDJUHHG
FRXULHU SURILOH QRW EHFDXVH WKH\ KDG IHOW VRPHWKLQJ                ,GDW7KH6XSUHPH&RXUWKRZHYHUUHYHUVHG,GDW
VXVSLFLRXVLQLW,QRWKHUZRUGVXQOLNHWKHDJHQWLQ%RQGWKH           $VWKH&RXUWH[SODLQHGm2WKHUWKDQWKHIDFWRIDSULRU
RIILFHUVLQWKLVFDVHKDGDUHDVRQDEOHEHOLHIWKDWWKHOXJJDJH             FRQYLFWLRQ DQ\ IDFW WKDW LQFUHDVHV WKH SHQDOW\ IRU D FULPH
FRXOG FRQWDLQ FRQWUDEDQG EHIRUH HYHU WRXFKLQJ LW  ,Q IDFW       EH\RQGWKHSUHVFULEHGVWDWXWRU\PD[LPXPPXVWEHVXEPLWWHG
QHLWKHU WKH RIILFHUVj SURGGLQJ RI WKH OXJJDJH QRU WKH GUXJ       WR D MXU\ DQG SURYHG EH\RQG D UHDVRQDEOH GRXEWl  ,G DW
VQLIILQJGRJUHYHDOHGDQ\WKLQJVXVSLFLRXVKHQFHWKHUHDVRQ                
WKHRIILFHUVDSSURDFKHG)ORZDODQGREWDLQHGKLVFRQVHQWWR
VHDUFKWKHEDJV*LYHQWKDW)ORZDOPDWFKHGWKHGUXJFRXULHU                7KH&RXUWKDGHDUOLHUDQQRXQFHGWKHSULQFLSOHXQGHUO\LQJ
SURILOH DQG WKDW KH FRQVHQWHG WR WKH XOWLPDWH VHDUFK RI KLV      WKH $SSUHQGL UXOH LQ sRQHV Y 8QLWHG 6WDWHV  86 
OXJJDJH WKH RIILFHUV KDG D UHDVRQDEOH EDVLV IRU WKH VHDUFK       ,QsRQHVWKH&RXUWLQWHUSUHWHGDFULPLQDOVWDWXWHVR
LQGHSHQGHQWRIDQ\SK\VLFDOSURGGLQJRUPDQLSXODWLRQRIWKH                DV WR DYRLG WKH GLIILFXOW DQG VLJQLILFDQW FRQVWLWXWLRQDO
EDJV                                                                      SUREOHPVSRVHGE\UHPRYLQJIURPWKHMXU\WKHILQGLQJRIIDFWV
                                                                           WKDWZLOOGHWHUPLQHDVWDWXWRU\VHQWHQFLQJUDQJH,GDW
                                  ,,,                                     7KH&RXUWKRZHYHUGLGDQQRXQFHWKHSULQFLSOHWKDWEHFDPH
                                                                           ODZLQ$SSUHQGLmDQ\IDFWRWKHUWKDQSULRUFRQYLFWLRQWKDW
   )ORZDOQH[WDUJXHVDMXU\VKRXOGKDYHGHFLGHGWKHZHLJKW                LQFUHDVHVWKHPD[LPXPSHQDOW\IRUDFULPHPXVWEHFKDUJHG
RIWKHGUXJV$VQRWHGDERYHWKHWULDOMXGJHIRXQGWKHZHLJKW            LQDQLQGLFWPHQWVXEPLWWHGWRDMXU\DQGSURYHQEH\RQGD
RI WKH GUXJV ZDV  JUDPV E\ D SUHSRQGHUDQFH RI WKH            UHDVRQDEOHGRXEWl,GDWQ
HYLGHQFHDQGLQDQ\FDVHZDVPRUHWKDQJUDPVEH\RQG
DUHDVRQDEOHGRXEW7KHWULDOMXGJHPDGHKLVGHFLVLRQEHIRUH                 7KH LQGLFWPHQW LQ )ORZDOjV FDVH VSHFLILFDOO\ FKDUJHG
WKHUHFHQW6XSUHPH&RXUWFDVHRI$SSUHQGLY1HZsHUVH\                   )ORZDO ZLWK SRVVHVVLRQ RI  NLORJUDPV RI FRFDLQH LQ
BBB 86 BBB  6&W   /(GG               YLRODWLRQRI86&E$7KHXOWLPDWHHIIHFWRI
)ORZDODUJXHVWKDW$SSUHQGLQRZUHTXLUHVWKHVXEPLVVLRQRI                 WKHWULDOMXGJHjVILQGLQJLQWKLVFDVHLVWKHVDPHDVWKHHIIHFW
WKH ZHLJKW TXHVWLRQ WR WKH MXU\ DQG WKDW IDLOXUH WR GR VR LV   RI WKH MXGJHjV ILQGLQJ LQ $SSUHQGL WKH WULDO MXGJH PDGH D
HUURU                                                                    IDFWXDOILQGLQJWKDWGHWHUPLQHGWKHDSSURSULDWHOHQJWKRIWKH
                                                                           FULPLQDO VHQWHQFH  0RUH VSHFLILFDOO\ D ILQGLQJ DV WR WKH
                                                                           ZHLJKW RI WKH GUXJV GHWHUPLQHG WKH UDQJH RI SHQDOWLHV WKDW
                                                                           ZRXOG DSSO\ WR )ORZDO  *LYHQ )ORZDOjV WZR SULRU IHORQ\
                                                                           FRQYLFWLRQVOLIHLPSULVRQPHQWZLWKRXWSDUROHZDVPDQGDWRU\
    
     %HFDXVH WKH JRYHUQPHQW GLG QRW UDLVH WKH LVVXH WKH 6XSUHPH &RXUW     LIKHSRVVHVVHGILYHRUPRUHNLORJUDPVRIFRFDLQH86&
GLG QRW FRQVLGHU WKH HIIHFW RI FRQVHQW LQ   43/
