01a0013p.06

7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ ³XQSXEOLVKHG GHFLVLRQ´
ILOHG RQ 1RYHPEHU 2Q -DQXDU\ WKH FRXUW GHVLJQDWHG
WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ

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 DS
81,7('67$7(6&28572)$33($/6
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB
:,//,$0 $ &2+1
3ODLQWLII$SSHOODQW
Y
1$7,21$/ %2$5' 2) 75,$/
$'92&$&< -2+1 '2(6
0HPEHUVRIWKH5HYLHZ
6WDQGDUGV&RPPLWWHH
'HIHQGDQWV$SSHOOHHV
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
1R²-RQ3KLSSV0F&DOOD'LVWULFW-XGJH
6XEPLWWHG2FWREHU
'HFLGHGDQG)LOHG1RYHPEHU
%HIRUH.(,7+68+5+(,15,&+DQG&/$<&LUFXLW
-XGJHV

-- 1 of 4 --

&RKQY1DW¶O%GRI7ULDO
$GYRFDF\HWDO
1R
3ODLQWLII LV DQ DWWRUQH\ DQG LV SURFHHGLQJ SUR VH RQ DSSHDO
BBBBBBBBBBBBBBBBB
&2816(/
21 %5,() :LOOLDP $ &RKQ &2+1 /$: ),50
&RUGRYD7HQQHVVHHIRU$SSHOODQW*DU\.6PLWK60,7+
6$%%$7,1, 0F/($5< 0HPSKLV 7HQQHVVHH IRU
$SSHOOHHV
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
68+5+(,15,&+ &LUFXLW -XGJH 3ODLQWLII :LOOLDP $
&RKQDSSHDOVVXPPDU\MXGJPHQWIRU'HIHQGDQWV1DWLRQDO
%RDUGRI7ULDO$GYRFDF\DQG-RKQ'RHVWRPHPEHUVRI
WKH ERDUG¶V 5HYLHZ 6WDQGDUGV &RPPLWWHH FROOHFWLYHO\
³1%7$´ 7KH VXLW VWHPPHG IURP 1%7$¶V GHQLDO RI
3ODLQWLII¶V DSSOLFDWLRQ IRU D &LYLO 7ULDO $GYRFDF\
&HUWLILFDWLRQ3ODLQWLIIDOOHJHGWKLVZDVDYLRODWLRQRIYDULRXV
FRQVWLWXWLRQDOULJKWV86&†DQGDQWLWUXVWODZV
FRQVWLWXWHGDFRQVSLUDF\DQGDQLQWHQWLRQDOLQWHUIHUHQFHZLWK
FRQWUDFW XQGHU VWDWH ODZ 3ODLQWLII VRXJKW GDPDJHV DQG
LQMXQFWLYH UHOLHI 3ODLQWLII DVVHUWV WKH FRXUW HUUHG EHFDXVH
DPRQJRWKHUWKLQJVLWFRQVLGHUHGLPSHUPLVVLEOHIDFWRUVZKHQ
GHWHUPLQLQJ 1%7$ ZDV QRW D TXDVLJRYHUQPHQWDO DJHQF\
XQGHU † DQG WKDW WKH DZDUG RI DWWRUQH\ IHHV ZDV
LPSURSHU:H$)),50
,
1%7$PRYHGWRGLVPLVVWKHFRPSODLQWLQLWVHQWLUHW\IRU
IDLOXUHWRVWDWHFODLPVRQZKLFKUHOLHIFDQEHJUDQWHG)HG5
&LY3 E 7KHFRXUWJUDQWHGWKHPRWLRQWRGLVPLVVDV
WRWKHDQWLWUXVWFODLPDQGWKHVWDWHODZFODLPIRULQWHQWLRQDO
LQWHUIHUHQFH ZLWK FRQWUDFW EHFDXVH WKH FRPSODLQW GLG QRW

-- 2 of 4 --

1R &RKQY1DW¶O%GRI7ULDO
$GYRFDF\HWDO

VSHFLI\DQ\IDFWXDOEDVLVIRUWKHFODLPVVRDVWRSXW1%7$RQ
QRWLFH
1%7$WKHQVRXJKWVXPPDU\MXGJPHQWDVWRDOOUHPDLQLQJ
FODLPVEHFDXVH3ODLQWLIIIDLOHGWRHVWDEOLVKDGLVSXWHGLVVXHRI
IDFW,QVXSSRUWRILWVPRWLRQ1%7$DVVHUWHGWKDW3ODLQWLII
HQWHUHGLQWRDUHOHDVHDQGFRYHQDQWQRWWRVXHDQGDJUHHGWR
LQGHPQLI\1%7$DQGVXSSRUWHGLWVPRWLRQZLWKDIILGDYLWV
DQGRWKHUHYLGHQFHLQFOXGLQJWKHDJUHHPHQWRIWKHSDUWLHV
1%7$DOVRDUJXHGWKDWDVDSULYDWHHQWLW\LWZDVQRWDVWDWH
DFWRU IRU SXUSRVHV RI † DQG WKDW 3ODLQWLII VKRZHG QR
GDPDJHV :KHQ 1%7$ ILOHG LWV DQVZHU LW DVVHUWHG D
FRXQWHUFODLPIRUDWWRUQH\IHHVSXUVXDQWWRLWVDJUHHPHQWZLWK
3ODLQWLII
3ODLQWLII VRXJKW VXPPDU\ MXGJPHQW RQ KLV UHTXHVW IRU
LQMXQFWLYH UHOLHI WR RUGHU 1%7$ WR LVVXH WKH FHUWLILFDWLRQ
DUJXLQJWKDW1%7$ZDVDTXDVLJRYHUQPHQWDODJHQF\XQGHU
†
7KHGLVWULFWFRXUWFRQFOXGHG1%7$ZDVQRWDVWDWHDFWRUIRU
†SXUSRVHVEHFDXVHLWLVDSULYDWHHQWLW\DQG3ODLQWLII
RIIHUHGQRVXSSRUWIRUKLVDOOHJDWLRQVWKDW1%7$SHUIRUPHG
DIXQFWLRQWUDGLWLRQDOO\SHUIRUPHGH[FOXVLYHO\E\WKHVWDWHRU
WRVKRZDV\PELRWLFUHODWLRQVKLSEHWZHHQ1%7$DQGWKHVWDWH
VRWKDW1%7$¶VFRQGXFWVXEMHFWHGLWWR†OLDELOLW\DVD
TXDVLJRYHUQPHQWDODJHQF\7KHFRXUWDOVRIRXQG3ODLQWLII
GLVFORVHG DQG VXIIHUHG QR GDPDJHV DV D UHVXOW RI 1%7$¶V
DFWLRQV7KHFRXUWWKHUHIRUHJUDQWHGVXPPDU\MXGJPHQWWR
1%7$ RQ DOO FODLPV DQG GHQLHG 3ODLQWLII¶V PRWLRQ IRU
VXPPDU\ MXGJPHQW $W WKLV WLPH WKH FRXUW DOVR GHQLHG
ZLWKRXW SUHMXGLFH 1%7$¶V FRXQWHUFODLP IRU DWWRUQH\ IHHV
EHFDXVHWKHUHZDVQRVXSSRUWLQJGRFXPHQWDWLRQ
7KHSDUWLHVVXEVHTXHQWO\ILOHGFURVVPRWLRQVIRUVXPPDU\
MXGJPHQWRQWKHFRXQWHUFODLPIRUDWWRUQH\IHHV1%7$ILOHG
DIILGDYLWV UHJDUGLQJ WKH UHDVRQDEOHQHVV RI WKH IHHV DQ
LWHPL]HGVWDWHPHQWRIVHUYLFHVUHQGHUHGDQGWKHDJUHHPHQWRI
WKH SDUWLHV 3ODLQWLII ILOHG DIILGDYLWV UHJDUGLQJ WKH

-- 3 of 4 --

&RKQY1DW¶O%GRI7ULDO
$GYRFDF\HWDO
1R
XQUHDVRQDEOHQHVVRIWKHIHHV1%7$DVVHUWHGLWZDVHQWLWOHG
WRWKHDZDUGRIIHHVXQGHU WKHDJUHHPHQWRIWKHSDUWLHV
)HG5&LY3EHFDXVH3ODLQWLII¶VVXLWZDVIULYRORXV
XQUHDVRQDEOH DQG ZLWKRXW IRXQGDWLRQ DQG 86&
†EHFDXVHLWZDVWKHSUHYDLOLQJSDUW\
7KHFRXUWJUDQWHG1%7$¶VPRWLRQIRUVXPPDU\MXGJPHQW
DVWRWKHIHHDZDUGEDVHG RQ WKHDJUHHPHQWRIWKHSDUWLHV
5XOHDQG†KDYLQJIRXQGWKHDWWRUQH\IHHVDQGFRVWV
UHDVRQDEOH 7KH FRXUW VWDWHG IRU WKH UHFRUG WKDW 3ODLQWLII
VKRXOGQRWKDYHUHFHLYHGFHUWLILFDWLRQIURP1%7$EDVHGRQ
WKHFRXUW¶VSULRUH[SHULHQFHZLWK3ODLQWLIIDQGWKDWWRKDYH
GRQHVRZRXOGKDYHEHHQ³DGLVVHUYLFHWRWKHFRPPXQLW\´
-$ 7KH FRXUW DOVR VWDWHG WKH SUHVHQW FDVH ZDV
HJUHJLRXVYH[DWLRXVDQG³FRXOGEHRQHLQZKLFKWKHPDWWHU
ZDV UHIHUUHG WR WKH %RDUG RI 3URIHVVLRQDO 5HVSRQVLELOLW\´
-$
,,
3ODLQWLIIDVVHUWVWKDWWKHGLVWULFWFRXUWHUUHGZKHQLWJUDQWHG
VXPPDU\MXGJPHQWWR'HIHQGDQWDQGGHQLHGKLVPRWLRQIRU
VXPPDU\MXGJPHQW7KLV&RXUWUHYLHZVGHQRYRDJUDQWRI
VXPPDU\MXGJPHQW6HH.OHSSHUY)LUVW$P%DQN)G
WK&LU 6XPPDU\MXGJPHQWLVSURSHU
ZKHQ³WKHUHLVQRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQG
WKDWWKHPRYLQJSDUW\LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURI
ODZ )HG 5 &LY 3 F ,Q UHVSRQVH WR D PRWLRQ IRU
VXPPDU\ MXGJPHQW WKH QRQPRYDQW PD\ QRW UHVW RQ KLV
SOHDGLQJVEXWPXVWFRPHIRUZDUGZLWKIDFWVGHPRQVWUDWLQJ
WKHUH LV D JHQXLQH LVVXH RI PDWHULDO IDFW IRU WULDO 6HH
$QGHUVRQ Y /LEHUW\ /REE\ ,QF 86
.OHSSHU)GDW
6XPPDU\ MXGJPHQW ZDV DSSURSULDWH EHFDXVH 3ODLQWLII¶V
EULHILQUHVSRQVHWR1%7$¶VPRWLRQZKLFKZDVXQVXSSRUWHG
E\DQ\DIILGDYLWVRURWKHUHYLGHQFHGLGQRWFUHDWHDJHQXLQH
LVVXHRIPDWHULDOIDFW,QDGGLWLRQWKHFRXUWZDVFRUUHFWWR
FRQFOXGH1%7$DVDSULYDWHHQWLW\LVQRWDVWDWHDFWRUIRU
1R &RKQY1DW¶O%GRI7ULDO
$GYRFDF\HWDO

† SXUSRVHV RU D SHUVRQ WKDW FDQ EH VXHG IRU DOOHJHG
FRQVWLWXWLRQDOYLRODWLRQV6HH)ODJJ%URV,QFY%URRNV
86 (OOLVRQY*DUEDULQR)G
WK&LU %LHUY)OHPLQJ)G
WK &LU )LQDOO\ WKH FRXUW SURSHUO\ IRXQG WKDW
3ODLQWLIIGLGQRWGLVFORVHHYLGHQFHRIFODLPHGGDPDJHVIRUDQ\
RIKLVFODLPV
,,,
3ODLQWLII DOVR DUJXHV WKDW WKH GLVWULFW FRXUW HUUHG ZKHQ LW
DZDUGHG1%7$DWWRUQH\IHHV7KLV&RXUWUHYLHZVDGLVWULFW
FRXUW¶VDZDUGRIDWWRUQH\IHHVIRUDQDEXVHRIGLVFUHWLRQ6HH
:LOVRQ6LPPRQVY/DNH&R6KHULII¶V'HSW)G
WK&LU 3ODLQWLIIYROXQWDULO\FRYHQDQWHGQRWWR
VXHDQGWRSD\WKHFRVWVWRGHIHQG DQ\VXLWFRQFHUQLQJKLV
DSSOLFDWLRQ 0RUHRYHU DQ DZDUG RI DWWRUQH\ IHHV LV DOVR
DYDLODEOHWRDSDUW\SUHYDLOLQJLQDFLYLOULJKWVVXLWSXUVXDQWWR
†DQGWKHOHJDOEDVLVRI3ODLQWLII¶VFODLPZDVVRZLWKRXW
PHULWWKDWWKHFRXUWUHDVRQDEO\IRXQG3ODLQWLII¶VFODLPWREH
IULYRORXV7KHUHZDVQRDEXVHRIGLVFUHWLRQ
)LQDOO\'HIHQGDQWUHTXHVWVDWWRUQH\¶VIHHVDQGH[SHQVHVIRU
GHIHQGLQJDIULYRORXVDQGYH[DWLRXVDSSHDO7KLVUHOLHIPD\
EH JUDQWHG RQ D VHSDUDWHO\ ILOHG PRWLRQ DQG UHDVRQDEOH
RSSRUWXQLW\IRU3ODLQWLIIWRUHVSRQG6HH)HG5$SS3
$)),50('

-- 4 of 4 --