01a0116p.06

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
-2( ,925< -2+1621
3HWLWLRQHU$SSHOODQW
Y
81,7(' 67$7(6 2) $0(5,&$
5HVSRQGHQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
1RV²7KRPDV$:LVHPDQ-U
'LVWULFW-XGJH
$UJXHG2FWREHU
'HFLGHGDQG)LOHG$SULO
%HIRUH.(11('<68+5+(,15,&+DQG0225(
&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' & 0DUN 3LFNUHOO 1DVKYLOOH 7HQQHVVHH IRU
$SSHOODQW:LOOLDP&RKHQ$66,67$1781,7('67$7(6
$77251(< 1DVKYLOOH 7HQQHVVHH IRU $SSHOOHH
21 %5,() & 0DUN 3LFNUHOO 1DVKYLOOH 7HQQHVVHH IRU
$SSHOODQW 5REHUW $QGHUVRQ $66,67$17 81,7('
67$7(6$77251(<1DVKYLOOH7HQQHVVHHIRU$SSHOOHH

-- 1 of 6 --

-RKQVRQY8QLWHG6WDWHV 1R
3HWLWLRQHU¶V 5XOH PRWLRQ ZDV JRYHUQHG E\ D QRZ VXSHUVHGHG
YHUVLRQ RI WKH UXOH ZKLFK SURYLGHG LQ SHUWLQHQW SDUW
7KH FRXUW RQ PRWLRQ RI D GHIHQGDQW PD\ JUDQW D QHZ WULDO WR WKDW
GHIHQGDQW LI UHTXLUHG LQ WKH LQWHUHVW RI MXVWLFH $ PRWLRQ IRU
D QHZ WULDO EDVHG RQ WKH JURXQG RI QHZO\ GLVFRYHUHG HYLGHQFH
PD\ EH PDGH RQO\ EHIRUH RU ZLWKLQ WZR \HDUV DIWHU ILQDO
MXGJPHQW $ PRWLRQ IRU D QHZ WULDO EDVHG RQ DQ\ RWKHU
JURXQGV VKDOO EH PDGH ZLWKLQ GD\V DIWHU YHUGLFW RU ILQGLQJ RI
JXLOW\ RU ZLWKLQ VXFK IXUWKHU WLPH DV WKH FRXUW PD\ IL[ GXULQJ WKH
GD\ SHULRG
)HG 5 &ULP 3 VXSHUVHGHG
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
68+5+(,15,&+ &LUFXLW -XGJH 3HWLWLRQHU -RH ,YRU\
-RKQVRQDSSHDOVWKHMXGJPHQWGHQ\LQJKLVPRWLRQXQGHU
86&† † IRUKDEHDVUHOLHI7KHGLVWULFWFRXUW
GLVPLVVHGWKHPRWLRQDVXQWLPHO\EHFDXVHLWZDVILOHGPRUH
WKDQRQH\HDUDIWHU-RKQVRQ¶VGLUHFWDSSHDOKDGEHFRPHILQDO
:H$)),50
,
3HWLWLRQHU ZDV FRQYLFWHG E\ D MXU\ RI SRVVHVVLRQ RI D
FRQWUROOHG VXEVWDQFH ZLWK LQWHQW WR GLVWULEXWH DQG ZDV
VHQWHQFHG WR PRQWKV RI LPSULVRQPHQW 3HWLWLRQHU
DSSHDOHG KLV FRQYLFWLRQ DQG VHQWHQFH WR WKLV &RXUW :H
DIILUPHGRQ)HEUXDU\6HH8QLWHG6WDWHVY-RKQVRQ
1R:/ WK&LU)HEUXDU\
XQSXEOLVKHG SHU FXULDP 7KH 6XSUHPH &RXUW GHQLHG
FHUWLRUDULRQ2FWREHU6HH-RKQVRQY8QLWHG6WDWHV
86
2Q1RYHPEHU3HWLWLRQHUILOHGDWLPHO\PRWLRQ
XQGHU)HG5&ULP3 5XOH IRUDQHZWULDOEDVHGRQ
QHZO\ GLVFRYHUHG HYLGHQFH RI IDOVH WHVWLPRQ\ 3HWLWLRQHU
VXEPLWWHGDQDIILGDYLWRI'DYLG-RKQVRQKLVEURWKHUVWDWLQJ

-- 2 of 6 --

-RKQVRQY8QLWHG6WDWHV 1R
%
3HWLWLRQHUDOVRDUJXHVWKDWKLV†PRWLRQZDVWLPHO\
EHFDXVHLWZDVEURXJKWZLWKLQRQH\HDURIWKHGLVFRYHU\RI
QHZ HYLGHQFH RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO 7KLV
DUJXPHQWZDVQRWOLVWHGLQWKHFHUWLILFDWHRIDSSHDODELOLW\DQG
ZH WKHUHIRUH FDQQRW FRQVLGHU LW 6HH 86&
† F % ,QUH&HUWLILFDWHVRI$SSHDODELOLW\)G
WK &LU ³,Q WKH EULHILQJ OHWWHU WR WKH
SDUWLHVWKHFOHUNVKDOOVWDWHWKDWWKHFRXUWRIDSSHDOVZLOOQRW
HQWHUWDLQDQ\LVVXHWKDWODFNVGLVWULFWFRXUWRUFRXUWRIDSSHDOV
FHUWLILFDWLRQ´ ,QDQ\HYHQWWKH³QHZHYLGHQFH´3HWLWLRQHU
DOOHJHG LQ FRQQHFWLRQ ZLWK KLV LQHIIHFWLYH DVVLVWDQFH RI
FRXQVHO DUJXPHQW ZDV LGHQWLFDO WR WKH ³QHZ HYLGHQFH´ KH
DVVHUWHGDVSDUWRIKLV5XOHPRWLRQLQ+HWKXVGLG
QRWEULQJKLV†PRWLRQZLWKLQRQH\HDURIWKHGLVFRYHU\
RIWKHDOOHJHGQHZHYLGHQFH
,,,
)RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHMXGJPHQWRI
WKHGLVWULFWFRXUW
1R -RKQVRQY8QLWHG6WDWHV
6HFWLRQ SURYLGHV LQ SHUWLQHQW SDUW
$ \HDU SHULRG RI OLPLWDWLRQ VKDOO DSSO\ WR D PRWLRQ XQGHU WKLV
WKDWWKH*RYHUQPHQW VZLWQHVV*DU\%RZHUVKDGOLHGDWWULDO
3HWLWLRQHUDOVRSUHVHQWHGIDFWVLQWURGXFHGDW'DYLG-RKQVRQ V
VHQWHQFLQJIXUWKHULQGLFDWLQJWKDW%RZHUVKDGOLHGDWWULDO6HH
8QLWHG6WDWHVY-RKQVRQ1R:/DW
WK &LU )HEUXDU\ XQSXEOLVKHG SHU FXULDP
7KHGLVWULFWFRXUWGHQLHGKLV5XOHPRWLRQ2Q)HEUXDU\
WKLVFRXUWDIILUPHGWKHGHQLDO:HFRQFOXGHGWKDW
WKHHYLGHQFHZDVQRW³QHZO\GLVFRYHUHG´ZLWKLQWKHPHDQLQJ
RI5XOHDQGWKDWLQDQ\HYHQWWKHHYLGHQFH ZRXOG QRW
OLNHO\KDYHSURGXFHGDQDFTXLWWDO6HHLGDW
2Q6HSWHPEHU3HWLWLRQHUPRYHGXQGHU†WR
YDFDWHKLVFRQYLFWLRQDQGVHQWHQFH2Q-DQXDU\WKH
GLVWULFW FRXUW GLVPLVVHG KLV † SHWLWLRQ DV XQWLPHO\
EHFDXVHKHGLGQRWILOHLWZLWKLQRQH\HDUDIWHUWKHHQGRIKLV
GLUHFW DSSHDO LQ WKLV &RXUW 3HWLWLRQHU PRYHG IRU
UHFRQVLGHUDWLRQRQ-DQXDU\ZKLFKZDVGHQLHGRQ
$SULO+HDSSHDOHGRQ$SULO7KLV&RXUW
JUDQWHGDFHUWLILFDWHRIDSSHDODELOLW\RQ-XO\OLPLWHG
WRRQHLVVXHZKHWKHUDWLPHO\PRWLRQVHHNLQJDQHZWULDO
XQGHU )HG 5 &ULP 3 VHUYHV WR UHQGHU D MXGJPHQW RI
FRQYLFWLRQDVQRWILQDOIRUSXUSRVHVRIWKHUXQQLQJRIWKHRQH
\HDUVWDWXWHRIOLPLWDWLRQVXQGHU86&†
,,
$
7KH SULQFLSDO TXHVWLRQ LQ WKLV FDVH LV WKH HIIHFW RI
3HWLWLRQHU¶V5XOHPRWLRQRQWKHOLPLWDWLRQSHULRGFRQWDLQHG
LQ86&†DVDPHQGHGE\WKH$QWLWHUURULVPDQG
(IIHFWLYH'HDWK3HQDOW\$FWRI $('3$ 86&
†† $IWHU WKH $('3$¶V HQDFWPHQW †
SURYLGHVDRQH\HDUOLPLWDWLRQSHULRGWKDWUXQVIURPWKHODWHVW
RI IRXU HYHQWV RQH RI ZKLFK LV WKH GDWH RQ ZKLFK WKH
MXGJPHQWRIFRQYLFWLRQEHFRPHV³ILQDO´3HWLWLRQHUFODLPV

-- 3 of 6 --

-RKQVRQY8QLWHG6WDWHV 1R
VHFWLRQ 7KH OLPLWDWLRQ SHULRG VKDOO UXQ IURP WKH ODWHVW RI ±
WKH GDWH RQ ZKLFK WKH MXGJPHQW RI FRQYLFWLRQ EHFRPHV ILQDO

WKH GDWH RQ ZKLFK WKH IDFWV VXSSRUWLQJ WKH FODLP RU FODLPV
SUHVHQWHG FRXOG KDYH EHHQ GLVFRYHUHG WKURXJK WKH H[HUFLVH RI
GXH GLOLJHQFH
86& † SDUDJUDSK VL[
:H QHHG QRW FRQVLGHU ZKHQ D FRQYLFWLRQ EHFRPHV ILQDO XQGHU
† ZKHUH WKH SHWLWLRQHU GRHV QRW VHHN FHUWLRUDUL UHYLHZ :KLOH WKLV
&LUFXLW KDV \HW WR DGGUHVV WKH LVVXH RWKHU FLUFXLWV KDYH FRPH WR FRQIOLFWLQJ
FRQFOXVLRQV &RPSDUH *HQGURQ Y 8QLWHG 6WDWHV )G WK
&LU KROGLQJ WKDW ZKHUH QR SHWLWLRQ IRU FHUWLRUDUL LV ILOHG
FRQYLFWLRQ EHFRPHV ILQDO XSRQ FRXUW RI DSSHDO¶V PDQGDWH ZLWK 8QLWHG
6WDWHV Y *DPEOH )G WK &LU KROGLQJ WKDW ZLWKRXW D
SHWLWLRQ IRU FHUWLRUDUL FRQYLFWLRQ EHFRPHV ILQDO ZKHQ WLPH IRU VHHNLQJ
FHUWLRUDUL UHYLHZ H[SLUHV DQG 8QLWHG 6WDWHV Y %XUFK )G
WK &LU VDPH DQG .DSUDO Y 8QLWHG 6WDWHV )G
WKDW KLV 5XOH PRWLRQ SUHYHQWHG KLV FRQYLFWLRQ IURP
EHFRPLQJ ³ILQDO´ IRU † SXUSRVHV XQWLO )HEUXDU\
ZKHQ WKLV &RXUW DIILUPHG WKH GHQLDO RI WKH PRWLRQ
6WDWHGGLIIHUHQWO\3HWLWLRQHUDUJXHVWKDW†HQWLWOHVKLP
WR ILOH D SHWLWLRQ ZLWKLQ RQH\HDU RI ILQDO MXGJPHQW ZKLFK
PHDQV FRPSOHWLRQ RI GLUHFW UHYLHZ DQG WKDW GLUHFW UHYLHZ
FDQQRWEHFRPSOHWHXQWLOSRVWWULDOUHPHGLHVVXFKDV5XOH
PRWLRQV EDVHG RQ QHZ HYLGHQFH DUH UHVROYHG WKURXJK WKH
DSSHOODWHOHYHO
$OWKRXJKWKH$('3$GRHVQRWH[SUHVVO\GHILQHZKHQD
FRQYLFWLRQEHFRPHV³ILQDO´ZHSUHVXPH&RQJUHVVWRKDYH
EHHQ DZDUH WKDW IRU SXUSRVHV RI D FROODWHUDO DWWDFN D
FRQYLFWLRQEHFRPHVILQDODWWKHFRQFOXVLRQRIGLUHFWUHYLHZ
6HH 8QLWHG 6WDWHV Y 7RUUHV )G WK &LU
$VDJHQHUDOUXOHGLUHFWUHYLHZIRUDIHGHUDOSULVRQHU
ZKR ILOHV D SHWLWLRQ IRU FHUWLRUDUL ZLWK WKH 6XSUHPH &RXUW
FRQFOXGHVZKHQWKH&RXUWHLWKHUGHQLHVWKHSHWLWLRQRUGHFLGHV
WKHFDVHRQWKHPHULWV6HHLG7KHUHIRUHDEVHQWWKH5XOH
1R -RKQVRQY8QLWHG6WDWHV
$ UHODWHG LVVXH ZKLFK ZH QHHG QRW DGGUHVV LV ZKHWKHU $('3$¶V
OLPLWDWLRQ SHULRG LV VXEMHFW WR HTXLWDEOH WROOLQJ 6HH HJ 3UHVFRWW
)G DW FRQFOXGLQJ WKDW † ¶V OLPLWDWLRQ SHULRG LV QRW
MXULVGLFWLRQDO DQG WKHUHIRUH PD\ EH HTXLWDEO\ WROOHG 7DOLDQL Y &KUDQV
)G WK &LU VDPH $SSDUHQWO\ WKLV &LUFXLW KDV QRW \HW
FRQVLGHUHG WKH LVVXH LQ D SXEOLVKHG RSLQLRQ VHH 'RUDQ Y %LUNHWW 1R
:/ WK &LU 0DUFK DQG WKH LVVXH LV QRW
SURSHUO\ EHIRUH XV WRGD\
:H H[SUHVV QR YLHZ RQ ZKHWKHU WKHUH PD\ EH DQ LVVXH RI VXFFHVVLYH
SHWLWLRQV ZKHQ D SHWLWLRQHU ILOHV ZLWKLQ WKH ILUVW \HDU IROORZLQJ KLV
FRQYLFWLRQ ERWK D 5XOH PRWLRQ IRU D QHZ WULDO DQG D SHWLWLRQ IRU UHOLHI
SXUVXDQW WR 86& † 8QGHU † D ³VXFFHVVLYH´ SHWLWLRQ LV
VXEMHFW WR D ULJLG VFUHHQLQJ PHFKDQLVP GHVLJQHG WR DOORZ RQO\ WKRVH
SHWLWLRQV WKDW LQYROYH QHZO\ GLVFRYHUHG HYLGHQFH WKDW ³ZRXOG EH
VXIILFLHQW WR HVWDEOLVK E\ FOHDU DQG FRQYLQFLQJ HYLGHQFH WKDW QR UHDVRQDEOH
IDFWILQGHU ZRXOG KDYH IRXQG WKH PRYDQW JXLOW\ RI WKH RIIHQVH´ RU ³D
QHZ UXOH RI FRQVWLWXWLRQDO ODZ PDGH UHWURDFWLYH WR FDVHV RQ FROODWHUDO
UHYLHZ E\ WKH 6XSUHPH &RXUW WKDW ZDV SUHYLRXVO\ XQDYDLODEOH´
86& † SDUDJUDSK HLJKW 7KH LVVXH ZKHWKHU D 5XOH PRWLRQ IRU
D QHZ WULDO PD\ EH WUHDWHG DV D † SHWLWLRQ LV QRW EHIRUH XV WRGD\ QRU
QHHG ZH DGGUHVV DQ\ SURSRVHG PHWKRG IRU PDQDJLQJ QHZ WULDO PRWLRQV
DQG † SHWLWLRQV ZKHQ ILOHG HLWKHU FRQFXUUHQWO\ RU VXFFHVVLYHO\ VR DV
WR DOOHYLDWH WKH EXUGHQ RI DQ\ SRWHQWLDO VXFFHVVLYH SHWLWLRQ SUREOHPV RQ
† SHWLWLRQHUV
OLPLWDWLRQSHULRG:HUHFRJQL]HWKDWEHFDXVHUHODWHGLIQRW
LGHQWLFDO FODLPV PD\ EH SXUVXHG XQGHU ERWK 5XOH DQG
†WKHVHWZRSURYLVLRQVRYHUODSWRVRPHH[WHQW%HFDXVH
RI WKLV RYHUODS WKHLU GLIIHUHQW OLPLWDWLRQ SHULRGV FUHDWH
WHQVLRQ 1HYHUWKHOHVVQRWKLQJSUHYHQWVDSHWLWLRQHUXSRQ
GLVFRYHULQJ QHZ HYLGHQFH IURP ILOLQJ PRWLRQV XQGHU ERWK
5XOHDQG†7KHGLVWULFWFRXUWPD\WKHQFRQVROLGDWH
WKHPRWLRQVRUVWD\WKHWLPHO\ILOHG†PRWLRQSHQGLQJ
WKHRXWFRPHRIWKH5XOHPRWLRQ6HH8QLWHG6WDWHVY
3UHVFRWW)GDW2¶&RQQRUY8QLWHG6WDWHV
)GDW:HWKLQNWKDWWKLVUXOHVWULNHVWKHDSSURSULDWH
EDODQFHEHWZHHQWKHFRPSHWLQJFRQFHUQVRI5XOHDQGWKH
$('3$

-- 4 of 6 --

-RKQVRQY8QLWHG6WDWHV 1R
† G $ D VWDWXWH RI OLPLWDWLRQV SURYLVLRQ IRU KDEHDV SHWLWLRQHUV
LQ WKH FXVWRG\ RI WKH VWDWHV ZKLFK SURYLGHV WKDW WKH RQH\HDU SHULRG RI
OLPLWDWLRQV IRU ILOLQJ D SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV EHJLQV WR UXQ
RQ WKH ³μGDWH RQ ZKLFK WKH MXGJPHQW EHFDPH ILQDO E\ WKH FRQFOXVLRQ RI
GLUHFW UHYLHZ RU WKH H[SLUDWLRQ RI WKH WLPH IRU VHHNLQJ VXFK UHYLHZ¶´ ,G
DW TXRWLQJ † G $ 7KH %URQDXJK FRXUW KHOG WKDW DQ
DSSOLFDWLRQ WR UHRSHQ WKH GLUHFW DSSHDO GXH WR WKH LQHIIHFWLYH DVVLVWDQFH RI
DSSHOODWH FRXQVHO SXUVXDQW WR 2KLR 5 $SS 3 % ZDV SDUW RI WKH
³GLUHFW DSSHDO SURFHVV´ DQG WKDW WKXV WKH RQH\HDU VWDWXWH RI OLPLWDWLRQV
IRU ILOLQJ D KDEHDV SHWLWLRQ VKRXOG EH WROOHG GXULQJ WKH WLPH LQ ZKLFK VXFK
DQ DSSOLFDWLRQ LV SHQGLQJ LQ WKH VWDWH FRXUWV
1R FRPSHOOLQJ DQDORJLHV WR %URQDXJK FDQ EH GUDZQ LQ WKLV FDVH
KRZHYHU %URQDXJK FRQVLGHUHG DQ 2KLR SURYLVLRQ ZKLFK DOORZV WKH
GLUHFW DSSHDO LWVHOI WR EH UHRSHQHG XSRQ D VKRZLQJ RI LQHIIHFWLYH
DVVLVWDQFH RI DSSHOODWH FRXQVHO 6HH LG DW ,Q DFNQRZOHGJLQJ DQ
2KLR 5XOH % DSSOLFDWLRQ WR EH SDUW RI WKH GLUHFW DSSHDO WKH %URQDXJK
FRXUW ZDV VLPSO\ IROORZLQJ WKLV FRXUW¶V KROGLQJ LQ :KLWH Y 6FKRWWHQ
)G WK &LU FHUW GHQLHG 6 &W ZKLFK
KHOG WKDW EHFDXVH WKH 6XSUHPH &RXUW RI 2KLR GLG QRW FRQVLGHU DQ 2KLR
5XOH % DSSOLFDWLRQ WR EH SURSHU LQ D VWDWH KDEHDV SURFHHGLQJ LW PXVW
VWLOO EH SDUW RI WKH DFWLYLWLHV UHODWHG WR WKH GLUHFW DSSHDO LWVHOI
)XUWKHUPRUH UDWKHU WKDQ ZDLWLQJ WR UXQ † G ¶V RQH\HDU VWDWXWH RI
OLPLWDWLRQV XQWLO WKH SHWLWLRQHU¶V 2KLR 5XOH % DSSOLFDWLRQ KDG
FRPSOHWHG LWV FRXUVH LQ WKH VWDWH FRXUWV WKH %URQDXJK FRXUW RQO\ WROOHG WKH
VWDWXWH RI OLPLWDWLRQV ZKLOH WKH 2KLR 5XOH % DSSOLFDWLRQ ZDV SHQGLQJ
%URQDXJK )G DW 7KLV SUHYHQWHG WKH SHWLWLRQHU IURP JDLQLQJ
³DQ\ EHQHILW IURP KLV GHOD\´ LQ EULQJLQJ WKH DSSOLFDWLRQ ,G
8QOLNH WKH 2KLR SURYLVLRQ DW LVVXH LQ %URQDXJK ZKLFK H[SOLFLWO\
SHUPLWWHG WKH UHRSHQLQJ RI WKH GLUHFW DSSHDO WKH SHWLWLRQHU LQ WKLV FDVH
SXUVXDQW WR )HGHUDO 5XOH RI &ULPLQDO 3URFHGXUH VHHNV D QHZ WULDO
DOWRJHWKHU 7KH XQLTXH IDFWRUV DQG SUHFHGHQW GLFWDWLQJ WKDW DQ 2KLR 5XOH
% DSSOLFDWLRQ EH FRQVLGHUHG SDUW RI WKH GLUHFW DSSHDO GR QRW DSSO\ WR
5XOH PRWLRQV ZKLFK DUH DW LVVXH LQ WKLV FDVH 0RUHRYHU OLNH WKH FRXUW
LQ %URQDXJK WKLV &RXUW LV FRQFHUQHG ZLWK D SHWLWLRQHU¶V DELOLW\ WR IRUHVWDOO
LQGHILQLWHO\ WKH UXQQLQJ RI $('3$¶V RQH\HDU VWDWXWH RI OLPLWDWLRQV
VLPSO\ WKURXJK WKH GHOLQTXHQW ILOLQJ RI D SRVWWULDO PRWLRQ
:/DW VHHDOVR6HDJR)GDW%HFDXVH
DFROODWHUDOFKDOOHQJHLVDVHSDUDWHSURFHHGLQJWKDWGRHVQRW
LQWHUIHUHZLWKWKHILQDOLW\RIWKHMXGJPHQWWKDWLVDWWDFNHGD
GHOD\HG5XOHPRWLRQKDVQRSHUVHLPSDFWRQWKH$('3$
1R -RKQVRQY8QLWHG6WDWHV
G &LU VDPH
'XH WR WKH QDWXUH DQG WLPLQJ RI 3HWLWLRQHU¶V PRWLRQ LW ZLOO EH
GHVFULEHG KHUHLQDIWHU DV D ³GHOD\HG´ 5XOH PRWLRQ
PRWLRQLWZRXOGEHXQGLVSXWHGWKDW3HWLWLRQHU VMXGJPHQWRI
FRQYLFWLRQ EHFDPH ILQDO ZKHQ WKH 6XSUHPH &RXUW GHQLHG
FHUWLRUDULRQ2FWREHU±ZHOOEHIRUH$SULO
WKH HIIHFWLYH GDWH RI WKH $('3$ ,Q FDVHV ZKHUH WKH
FRQYLFWLRQEHFDPHILQDOSULRUWR$('3$¶VHIIHFWLYHGDWHZH
KDYH JUDQWHG D RQH\HDU JUDFH SHULRG IURP WKH $('3$¶V
HIIHFWLYHGDWHIRUGHIHQGDQWVWRVHHN†UHOLHI6HH+\DWW
Y8QLWHG6WDWHV)G WK&LU 7KXV
3HWLWLRQHUZRXOGKDYHKDGXQWLO$SULO WRILOHKLV
† PRWLRQ %HFDXVH KH GLG QRW ILOH WKH PRWLRQ XQWLO
6HSWHPEHU LW ZRXOG EH EDUUHG +RZHYHU LI
3HWLWLRQHU¶V 5XOH PRWLRQ SUHYHQWHG KLV MXGJPHQW RI
FRQYLFWLRQIURPEHFRPLQJILQDOXQWLO)HEUXDU\WKH
GDWHWKLV&RXUWDIILUPHG3HWLWLRQHU¶VGHQLDOWKHQ3HWLWLRQHU¶V
PRWLRQZRXOGEHWLPHO\
7RGHWHUPLQHZKHWKHU3HWLWLRQHU¶V5XOHPRWLRQDIIHFWV
WKH³ILQDOLW\´ RIKLVFRQYLFWLRQZHPXVWFRQVLGHUZKHWKHU
VXFKDPRWLRQLVSDUWRIGLUHFWUHYLHZRULVLQVWHDGDFROODWHUDO
FKDOOHQJH 0LQGIXO WKDW 3HWLWLRQHU¶V PRWLRQ ZDV EDVHG RQ
QHZHYLGHQFHDQGZDVILOHGDIWHUWKHH[SLUDWLRQRIWKHWHQGD\
SHULRGIRUVHHNLQJDSSHOODWHUHYLHZSURYLGHGLQ)HGHUDO5XOH
RI$SSHOODWH3URFHGXUH E ZHWKLQNWKDWFRPSHOOLQJUHDVRQV
MXVWLI\ WUHDWLQJ 3HWLWLRQHU¶V 5XOH PRWLRQ DV D FROODWHUDO
FKDOOHQJH
$ GHOD\HG 5XOH PRWLRQ LV XVXDOO\ QRW SDUW RI ³DQ\
FULWLFDO SURFHVV OHDGLQJ IURP WULDO WR GLUHFW DSSHDO´ 6HH
8QLWHG6WDWHVY:LOOLDPV1R:/DW
WK&LU1RY XQSXEOLVKHG FRQFOXGLQJWKDWD
5XOHPRWLRQEDVHGRQQHZHYLGHQFHLVDNLQWRDFROODWHUDO
SURFHHGLQJDQGWKXVDGHIHQGDQWKDVQRULJKWWRDSSRLQWHG
FRXQVHOWRILOHVXFKDPRWLRQ $VVWDWHGLQ:LOOLDPVGHOD\HG
5XOHPRWLRQVDUHQRWQHFHVVDU\³WRSUHVHUYHRUVKDUSHQ

-- 5 of 6 --

-RKQVRQY8QLWHG6WDWHV 1R
,Q 6HDJR )G DW WKH VSHFLILF LVVXH ZH DGGUHVVHG ZDV
ZKHWKHU HYLGHQFH RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FRXOG EH ³QHZO\
GLVFRYHUHG´ IRU SXUSRVHV RI D GHOD\HG 5XOH PRWLRQ ZKHUH WKH IDFWV
VXSSRUWLQJ WKH FODLP ZHUH ZLWKLQ WKH GHIHQGDQW V NQRZOHGJH DW WKH WLPH
RI WULDO 6HH LG :H FRQFOXGHG WKDW VXFK HYLGHQFH FRXOG QRW EH QHZO\
GLVFRYHUHG XQGHU 5XOH DQG VWUHVVHG WKDW D QDUURZ LQWHUSUHWDWLRQ RI
³QHZO\ GLVFRYHUHG´ LV MXVWLILHG E\ WKH KHLJKWHQHG ILQDOLW\ FRQFHUQV DQG
SUDFWLFDO LPSOLFDWLRQV RI 5XOH PRWLRQV EDVHG RQ QHZ HYLGHQFH 7KXV
DOWKRXJK 6HDJR LV QRW GLUHFWO\ RQ SRLQW LW LV SHUVXDVLYH DXWKRULW\ IURP WKLV
&LUFXLW IRU HTXDWLQJ D GHOD\HG 5XOH PRWLRQ ZLWK D FROODWHUDO FKDOOHQJH
LVVXHV IRU DSSHDO´ 6HH LG ³1RU >DUH WKH\@ PDGH IRU WKH
SXUSRVH RI JLYLQJ WKH WULDO MXGJH DQ RSSRUWXQLW\ WR FRUUHFW
HUURUVLQRUGHUWRDYRLGDGLUHFWDSSHDO´6HHLG$ORQJWKHVH
VDPH OLQHV ZH KDYH KHOG WKDW EHFDXVH RI WKHLU WLPLQJ DQG
QDWXUH GHOD\HG 5XOH PRWLRQV VKDUH LGHQWLFDO ³μILQDOLW\
LPSOLFDWLRQV DQG SUDFWLFDO FRQVLGHUDWLRQV¶´ ZLWK FROODWHUDO
DWWDFNV8QLWHG6WDWHVY6HDJR)G WK&LU
TXRWLQJ8QLWHG6WDWHVY(OOLVRQ)G
Q WK&LU
:H ILQG DGGLWLRQDO VXSSRUW LQ WKH QRWLFHRIDSSHDO
UHTXLUHPHQWFRQWDLQHGLQ)HGHUDO5XOHRI$SSHOODWH3URFHGXUH
E IRURXUFRQFOXVLRQWKDWDGHOD\HG5XOHPRWLRQLVD
FROODWHUDOFKDOOHQJHVHSDUDWHIURPWKHGLUHFWDSSHDO8QGHU
WKDW UXOH LI D 5XOH PRWLRQ WKDW LV QRW EDVHG RQ QHZO\
GLVFRYHUHGHYLGHQFHLVILOHGZLWKLQWKHVHYHQGD\SHULRGWKHQ
WKH³QRWLFHRIDSSHDOIURPDMXGJPHQWRIFRQYLFWLRQPXVWEH
ILOHGZLWKLQGD\VDIWHUWKHHQWU\RIWKHRUGHUGLVSRVLQJRI
WKH>5XOH@PRWLRQRUZLWKLQGD\VDIWHUWKHHQWU\RIWKH
MXGJPHQWRIFRQYLFWLRQZKLFKHYHUSHULRGHQGVODWHU´)HG
5$SS3 E $ ,QRWKHUZRUGVWKHWHQGD\SHULRGIRU
ILOLQJDQRWLFHRIDSSHDOLVWROOHGZKLOHD5XOHPRWLRQQRW
EDVHGRQQHZHYLGHQFHLVSHQGLQJDQGEHJLQVWRUXQDQHZ
DIWHUWKHRUGHUGLVSRVLQJRIWKHPRWLRQ6LPLODUO\WKHSHULRG
IRUILOLQJDQRWLFHRIDSSHDOLVWROOHGZKLOHD5XOHPRWLRQ
EDVHGRQQHZHYLGHQFHLVSHQGLQJVRORQJDVWKDWPRWLRQLV
ILOHG ZLWKLQ WHQ GD\V DIWHU WKH HQWU\ RI WKH MXGJPHQW RI
FRQYLFWLRQ6HH)HG5$SS3 E $ LL +RZHYHULI
D5XOHPRWLRQEDVHGRQQHZHYLGHQFHLVILOHGODWHUWKDQWHQ
GD\VDIWHUWKHHQWU\RIWKHMXGJPHQWDGHIHQGDQWZLVKLQJWR
1R -RKQVRQY8QLWHG6WDWHV
$OWKRXJK WKH SDUWLHV KDYH QRW SUHVHQWHG WKH DUJXPHQW ZH EHOLHYH LW
LV SUXGHQW WR GLVWLQJXLVK WKLV &RXUW¶V UHFHQW GHFLVLRQ LQ %URQDXJK Y 2KLR
)G WK &LU %URQDXJK DSSOLHG 86&
DSSHDOWKHGHQLDORIWKH5XOHPRWLRQPXVWILOHDVHFRQG
QRWLFH RI DSSHDO HYHQ LI WKH ILUVW DSSHDO RI ULJKW LV VWLOO
SHQGLQJ6HH8QLWHG6WDWHVY6SLOODQ1R:/
DW WK&LU$SULO XQSXEOLVKHG KROGLQJ
WKDWGHVSLWHSRWHQWLDOIRUFRQVROLGDWLRQLQGHSHQGHQWQRWLFHRI
DSSHDOLVQHFHVVDU\WRFRQIHUMXULVGLFWLRQRQFRXUWRIDSSHDOV
7KXVMXVWDVZHGRWRGD\WKH5XOHVRI$SSHOODWH3URFHGXUH
GUDZ D GLVWLQFWLRQ EHWZHHQ WLPHO\ 5XOH PRWLRQV ILOHG
ZLWKLQWHQGD\VDIWHUWKHHQWU\RIWKHMXGJPHQWRIFRQYLFWLRQ
DQGWKRVHWKDWDUHILOHGPRUHWKDQWHQGD\VDIWHUWKHHQWU\RI
WKHMXGJPHQWRIFRQYLFWLRQ
2XUKROGLQJWKDWGHOD\HG5XOHPRWLRQVGRQRWDIIHFWWKH
ILQDOLW\ RI D MXGJPHQW IRU SXUSRVHV RI WKH $('3$ DOVR
IXUWKHUVWKH$('3$¶VVWURQJSUHIHUHQFHIRUVZLIWDQGILQDO
DGMXGLFDWLRQRI†PRWLRQVDVH[SUHVVHGWKURXJKLWVVWULFW
OLPLWDWLRQ SHULRG DQG FRQVWUDLQWV RQ VXFFHVVLYH SHWLWLRQV
3HWLWLRQHU¶V UHDGLQJ RI 5XOH ZRXOG VHYHUHO\ XQGHUFXW
&RQJUHVV¶LQWHQWLQHQDFWLQJWKH$('3$E\JUHDWO\H[WHQGLQJ
WKHWLPHLQZKLFKDSHWLWLRQHUPD\SURSHUO\EULQJD†
FKDOOHQJH 3HWLWLRQHU¶V DUJXPHQW LQ HVVHQFH LV WKDW WKH
$('3$RQH\HDUOLPLWDWLRQSHULRGFDQQRWEHJLQWRUXQXQWLO
DOOGHOD\HG5XOHPRWLRQVDUHUHVROYHGDQGWKHWLPHSHULRG
IRUEULQJLQJDGHOD\HG5XOHPRWLRQKDVH[SLUHG7KXVWKH
UXOH3HWLWLRQHUDGYRFDWHVDVDSSOLHGWRKLVFDVHZRXOGPHDQ
WKDWWKH$('3$OLPLWDWLRQSHULRGZRXOGQRWH[SLUHXQWLODW
WKHHDUOLHVWWKUHH\HDUVDIWHUKLVFRQYLFWLRQEHFDPHILQDO7KH
SRWHQWLDOIRUDEXVHRIVXFKDUXOHLVHYLGHQWHYHU\GHIHQGDQW
VHHNLQJWRILOHDQXQWLPHO\†PRWLRQFRXOGGRDQHQG
UXQDURXQGWKH$('3$OLPLWDWLRQSHULRGE\ILOLQJDWLPHO\
EXWXOWLPDWHO\PHULWOHVV5XOHPRWLRQ
7KHUHIRUHZHKROGWKDWD5XOHPRWLRQEDVHGRQQHZ
HYLGHQFHDQGILOHGDIWHUWKHWHQGD\SHULRGSURYLGHGLQ)HG5
$SS3 E PXVWEHWUHDWHGDVDFROODWHUDOFKDOOHQJHIRU
SXUSRVHVRI†¶VOLPLWDWLRQSHULRG6HH:LOOLDPV

-- 6 of 6 --