01a0302p.06

7KH +RQRUDEOH 7KRPDV $ :LVHPDQ -U 6HQLRU 8QLWHG 6WDWHV
'LVWULFW -XGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ

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
81,7(' 67$7(6 2) $0(5,&$
3ODLQWLII$SSHOOHH
Y
.(11(7+ - 6&+8/7(
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
1R²3DXO50DWLD&KLHI'LVWULFW-XGJH
$UJXHG$XJXVW
'HFLGHGDQG)LOHG6HSWHPEHU
%HIRUH&/$<DQG*,/0$1&LUFXLW-XGJHV:,6(0$1
6HQLRU'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('6SLURV3&RFRYHV7ROHGR2KLRIRU$SSHOODQW
&KULVWLDQ + 6WLFNDQ $66,67$17 81,7(' 67$7(6
$77251(<&OHYHODQG2KLRIRU$SSHOOHH21%5,()

-- 1 of 6 --

8QLWHG6WDWHVY6FKXOWH 1R
6SLURV3&RFRYHV7ROHGR2KLRIRU$SSHOODQW&KULVWLDQ+
6WLFNDQ $66,67$17 81,7(' 67$7(6 $77251(<
&OHYHODQG2KLRIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
:,6(0$1 6HQLRU 'LVWULFW -XGJH .HQQHWK - 6FKXOWH
³$SSHOODQW´ DSSHDOVWKHVHQWHQFHHQWHUHGRQ0DUFK
DJDLQVWKLPIRUZLUHIUDXGEDQNIUDXGDQGVHFXULWLHVIUDXG
$SSHOODQWDUJXHVWKDWWKHGLVWULFWFRXUWVKRXOGKDYHGHSDUWHG
DQRWKHUQLQHOHYHOVIRUIDPLO\UHVSRQVLELOLWLHVDQGIDLOHGWR
GHSDUWWKRVHDGGLWLRQDOOHYHOVEHFDXVHLWGLGQRWXQGHUVWDQG
WKDWLWSRVVHVVHGWKHDXWKRULW\WRGHSDUWWKDWIDU,QDGGLWLRQ
$SSHOODQW DVVHUWV WKDW KLV VHQWHQFH YLRODWHV WKH 6XSUHPH
&RXUW¶V KROGLQJ LQ $SSUHQGL Y 1HZ -HUVH\ 86
$SSHOODQWDOVRDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGE\
DSSO\LQJ WKH 0DQGDWRU\ 9LFWLPV 5HVWLWXWLRQ $FW RI
³095$´ UDWKHUWKDQWKH9LFWLP:LWQHVV3URWHFWLRQ$FWRI
³9:3$´ LQGHWHUPLQLQJWKHDPRXQWRIUHVWLWXWLRQ
RZHG /DVWO\ WKH $SSHOODQW DUJXHV WKDW WKH GLVWULFW FRXUW
HUUHGLQIDLOLQJWRRUGHUWKHSUHSDUDWLRQRIDQXSGDWHGSUH
VHQWHQFLQJUHSRUWSULRUWRUHVHQWHQFLQJ7KH8QLWHG6WDWHV
³$SSHOOHH´RU³*RYHUQPHQW´ UHVSRQGVWKDWWKHGLVWULFWFRXUW
GLG QRW HUU DQG UHTXHVWV WKDW WKH $SSHOODQW¶V VHQWHQFH EH
DIILUPHGRQDOOJURXQGV
,
$SSHOODQWZDVDQDFFRXQWUHSUHVHQWDWLYHDQGVWRFNEURNHU
UHJLVWHUHG ZLWK WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ
³6(&´ DQGWKH1DWLRQDO$VVRFLDWLRQRI6HFXULWLHV'HDOHUV
,QF ³1$6'´ $SSHOODQW VROG LQWHUHVWRQO\ ³,2´ RU
VWULSSHGPRUWJDJHEDFNHGVHFXULWLHVWRYDULRXVPXQLFLSDOLWLHV
DQGVFKRROGLVWULFWVLQ2KLRWKURXJKUHSHDWHGDQGWHQDFLRXV
³FROGFDOOLQJ´7KHFKDUJHVLQKLVLQGLFWPHQWVWHPPHGIURP
KLV PLVUHSUHVHQWLQJ WR WKH HQWLWLHV¶ UHSUHVHQWDWLYHV WKDW WKH
VHFXULWLHVZHUHEDFNHGE\WKHJRYHUQPHQWDQGGLGQRWSODFH

-- 2 of 6 --

8QLWHG6WDWHVY6FKXOWH 1R
$VDUHVXOWWKH$SSHOODQWIDLOVWRFLWHVXIILFLHQWHYLGHQFHWR
YDFDWH KLV VHQWHQFH EDVHG RQ WKH 365 UHSRUW 6HH 8QLWHG
6WDWHV Y 6WHYHQV )G Q WK &LU
KROGLQJWKDWDVHQWHQFHVKRXOGQRWEHYDFDWHGZKHQQR
SUHMXGLFH UHVXOWHG IURP LQDFFXUDWH LQIRUPDWLRQ FRQWDLQHG
ZLWKLQ WKH 365 EHFDXVH WKH FRXUW GLG QRW UHO\ RQ WKDW
LQIRUPDWLRQZKHQVHQWHQFLQJ 7KXVWKHGLVWULFWFRXUWGLGQRW
FRPPLWSODLQHUURULQXVLQJWKHROG365
9,
%DVHGRQWKHIRUHJRLQJWKHKROGLQJVRIWKHGLVWULFWFRXUWDV
WR$SSHOODQW¶VILUVWVHFRQGDQGIRXUWKDVVLJQPHQWVRIHUURU
DUH$)),50('EXWLWVUHVWLWXWLRQRUGHULV9$&$7('DQG
WKHFDVHLV5(0$1'('WRGHWHUPLQHWKHSURSHUUHVWLWXWLRQ
XQGHUWKH9:3$
1R 8QLWHG6WDWHVY6FKXOWH
7ZHQW\IRXU FRXQWV RI EDQN IUDXG ZHUH GLVPLVVHG DW WULDO EHFDXVH
WKH GLVWULFW FRXUW UXOHG WKDW WKH EDQNV ZHUH QRW YLFWLPV RI $SSHOODQW¶V
VFKHPH WR GHIUDXG
WKH SULQFLSDO DW ULVN 7KH VHFXULWLHV VROG E\ $SSHOODQW
KRZHYHUZHUHQRWEDFNHGE\WKHJRYHUQPHQW
2Q6HSWHPEHU$SSHOODQWZDVLQGLFWHGLQDWKLUW\
FRXQWLQGLFWPHQW$WWULDO$SSHOODQWZDVFRQYLFWHGE\DMXU\
RQWZRFRXQWVRIZLUHIUDXGWKUHHFRXQWVRIPDLOIUDXGDQG
RQHFRXQWRIVHFXULWLHVIUDXGDQGVHQWHQFHGWRFRQILQHPHQWIRU
ILIW\RQH PRQWKV$SSHOODQWWKHQDSSHDOHGWKHMXGJPHQW
DQGVHQWHQFHWRWKLV&RXUW
,QDQXQSXEOLVKHGGHFLVLRQGDWHG0D\WKLV&RXUW
DIILUPHG WKH FRQYLFWLRQ DQG VHQWHQFH RI WKH GLVWULFW FRXUW
8QLWHG6WDWHVY6FKXOWH)G WK&LU 8SRQ
SHWLWLRQ IRU UHKHDULQJ HQ EDQF WKH VDPH SDQHO LVVXHG D
GHFLVLRQUHPDQGLQJWKHPDWWHUIRUUHVHQWHQFLQJLQOLJKWRIWKH
&RXUW¶VRSLQLRQLQ8QLWHG6WDWHVY&ROHPDQ)G
WK&LU HQEDQF 8QLWHG6WDWHVY6FKXOWH)G
WK&LU ,Q&ROHPDQDQHQEDQF&RXUWKHOGWKDW
DWULDOMXGJHFDQQRWFDWHJRULFDOO\H[FOXGHDQ\QRQSURKLELWHG
IDFWRUV IURP FRQVLGHUDWLRQ IRU D GRZQZDUG GHSDUWXUH
&ROHPDQ )G DW ,Q OLJKW RI &ROHPDQ DQG WKH
VWDWHPHQW E\ WKH GLVWULFW FRXUW WKDW LW ZRXOG OLNH WR GHSDUW
GRZQZDUGEXWGLGQRWEHOLHYHWKDWWKHUHZDVDOHJDOEDVLVIRU
GHSDUWXUHWKH&RXUWUHPDQGHGWKLVFDVHRQ2FWREHU
IRUUHVHQWHQFLQJ
2Q )HEUXDU\ DIWHU D KHDULQJ WKH GLVWULFW FRXUW
LVVXHG DQ DPHQGHG MXGJPHQW DQG FRPPLWPHQW RUGHU WKDW
GHSDUWHGGRZQZDUGILYHOHYHOVIURPWKHDSSOLFDEOHJXLGHOLQH
UDQJHDQGLPSRVHGDVHQWHQFHRIPRQWKVLPSULVRQPHQW
$SSHOODQWILOHGKLVQRWLFHRIDSSHDORQ0DUFK
,,
$SSHOODQWILUVWFRQWHQGVWKDWWKHGLVWULFWFRXUW¶VGRZQZDUG
GHSDUWXUH IRU H[WUDRUGLQDU\ IDPLO\ FLUFXPVWDQFHV ZDV

-- 3 of 6 --

8QLWHG6WDWHVY6FKXOWH 1R
LQVXIILFLHQW IRU WKH UHDVRQ WKDW WKH GLVWULFW FRXUW
PLVXQGHUVWRRGLWVDELOLW\WRGHSDUWLQOLJKWRI&ROHPDQ
$GLVWULFWFRXUW¶VGHFLVLRQWRGHSDUWIURPWKH6HQWHQFLQJ
*XLGHOLQHV WKH ³*XLGHOLQHV´ LV UHYLHZDEOH IRU DEXVH RI
GLVFUHWLRQ .RRQ Y 8QLWHG 6WDWHV 86
,WVGHFLVLRQQRWWRGHSDUWRUDVLQWKLVFDVHQRWWR
GHSDUWIXUWKHULVLQVXODWHGIURPDSSHOODWHVFUXWLQ\XQOHVVWKH
WULDOMXGJHHUUHGDVDPDWWHURIODZE\IDLOLQJWRFRPSUHKHQG
WKHODZIXOH[WHQWRIKLVRUKHUSRZHUWRGHSDUW&ROHPDQ
)G DW $SSHOODQW¶V DSSHDO WKHUHIRUH LV OLPLWHG WR
ZKHWKHUWKHGLVWULFWMXGJHSURSHUO\XQGHUVWRRGWKHVWDQGDUGWR
EHDSSOLHGDQGGRHVQRWDOORZWKH&RXUWWRFRQVLGHUZKHWKHU
WKHGLVWULFWMXGJHDEXVHGKLVGLVFUHWLRQLQQRWGHSDUWLQJPRUH
WKDQILYHOHYHOV
,QKLVEULHI$SSHOODQWFLWHVWZRVWDWHPHQWVE\WKHGLVWULFW
MXGJHWKDWKHDUJXHVGHPRQVWUDWHWKDWWKHGLVWULFWMXGJHIDLOHG
WRFRPSUHKHQGWKHOLPLWVRIKLVDELOLW\WRGHSDUWGRZQZDUG
)LUVW$SSHOODQWSRLQWVWRWKHIROORZLQJTXHVWLRQDVNHGE\WKH
FRXUWWRWKH$SSHOODQW¶VDWWRUQH\
0U'R\OHOHWPHDVN\RXWKLV,QRUGHUWROHWKLPVWD\
ZLWK KLV IDPLO\ , ZRXOG KDYH WR GHSDUW GRZQZDUG
OHYHOV KDYH \RX HYHU IRXQG D &RXUW RI $SSHDOV FDVH
ZKHUHWKH\VXVWDLQHGDOHYHOGRZQZDUGGHSDUWXUH"
6HFRQGWKH$SSHOODQWFLWHVWKHGLVWULFWMXGJH¶VODWHUVWDWHPHQW
WKDW
,W PD\ YHU\ ZHOO EH WUXH WKDW RWKHUV VKRXOG KDYH EHHQ
SURVHFXWHG,FHUWDLQO\DPQRWLQDSRVLWLRQWRPDNHDQ\
MXGJPHQWDVWRZKHWKHURUQRW0U6FKXOWHGLGRUGLGQRW
RIIHUWRDVVLVWLQWKHSURVHFXWLRQRIRWKHUSHUVRQVLQWKH
IHGHUDOV\VWHP%XWWKDWLVEHVLGHWKHIDFWDVIDUDVP\
UHDGLQJRIWKHJXLGHOLQHVLVFRQFHUQHG,GRQRWEHOLHYH
WKDW WKH IDFW WKDW KH LV WKH RQO\ RQH SURVHFXWHG LQ WKH
IHGHUDO V\VWHP VKRXOG EH WDNHQ LQWR DFFRXQW LQ
GHWHUPLQLQJ ZKHWKHU RU QRW D GHSDUWXUH VKRXOG EH
JUDQWHG
1R 8QLWHG6WDWHVY6FKXOWH
FLUFXLWVDGRSWLQJWKHPLQRULW\DSSURDFKKDYHUHDVRQHGWKDW
UHVWLWXWLRQRUGHUVXQGHUWKH$FWDUHQRWSXQLVKPHQWIRUWKH
SXUSRVHRI([3RVW)DFWR&ODXVHDQDO\VLV
7KH6L[WK&LUFXLWKRZHYHUKDVGHWHUPLQHGWKDWUHVWLWXWLRQ
LPSRVHGXQGHUWKH9:3$LVSXQLVKPHQWIRUWKHSXUSRVHRI
WKH([3RVW)DFWR&ODXVH8QLWHG6WDWHVY6WUHHELQJ
)G WK&LU :HVHHQRUHDVRQZK\ZH
VKRXOG QRW ILQG WKDW WKLV LV DOVR WUXH XQGHU WKH 095$
7KHUHIRUH WKHUH LV QR EDVLV IRU IROORZLQJ WKH PLQRULW\
DSSURDFK7KXVZHKROGWKDWZKHUHDQDFWZDVFRPPLWWHG
SULRU WR WKH HIIHFWLYH GDWH RI WKH 095$ WKH UHWURDFWLYH
DSSOLFDWLRQ RI WKH 095$ WR WKDW DFW YLRODWHV WKH ([ 3RVW
)DFWR&ODXVH
:KLOH$SSHOODQW¶V FRQYLFWLRQRFFXUUHGRQ0D\
ZKLFKLVDIWHUWKH095$¶VHIIHFWLYHGDWHRI$SULO
KLVFULPLQDODFWLYLW\RFFXUUHGSULRUWRWKH$FW¶VHIIHFWLYHGDWH
%HFDXVHWKH095$KDGWKHSRWHQWLDOWRLQFUHDVHWKHDPRXQW
RI UHVWLWXWLRQ KH ZDV UHTXLUHG WR SD\ WKH GLVWULFW FRXUW¶V
DSSOLFDWLRQRIWKH095$WR$SSHOODQWZDVUHWURDFWLYH$VD
UHVXOWWKHGLVWULFWFRXUWFRPPLWWHGSODLQHUURULQDSSO\LQJWKH
095$WRWKHGHWHUPLQDWLRQRI$SSHOODQW¶VUHVWLWXWLRQ7KH
UHVWLWXWLRQ RUGHU LV WKHUHIRUH 9$&$7(' DQG WKH LVVXH LV
5(0$1'('WRWKHGLVWULFWFRXUWIRUFRQVLGHUDWLRQRIWKH
DSSURSULDWHIDFWRUVXQGHUWKH9:3$
9
$SSHOODQW¶V ILQDO DUJXPHQW RQ DSSHDO LV WKDW WKH GLVWULFW
FRXUWHUUHGE\IDLOLQJWRREWDLQDQXSGDWHGSUHVHQWHQFHUHSRUW
³365´ SULRUWRWKHUHVHQWHQFLQJ%HFDXVHWKH$SSHOODQW
IDLOHG WR UDLVH WKLV REMHFWLRQ DW WKH VHQWHQFLQJ KHDULQJ WKH
VWDQGDUGRIUHYLHZLVSODLQHUURU6HHHJ+DOO 'HVSLWH
$SSHOODQW¶VFODLPRIHUURU$SSHOODQWKDVQRWGHPRQVWUDWHG
KRZKHZDVSUHMXGLFHGLQDQ\ZD\E\WKHXVHRIWKHROG365
DW WKH UHVHQWHQFLQJ 7KH $SSHOODQW KDV QRW RIIHUHG DQ\
PDWHULDO HYLGHQFH WKDW ZRXOG VKRZ WKDW DQ XSGDWHG UHSRUW
ZRXOG KDYH DQ\ HIIHFW DW DOO RQ WKH GLVWULFW FRXUW¶V UH
VHQWHQFLQJ

-- 4 of 6 --

8QLWHG6WDWHVY6FKXOWH 1R
7KH 8QLWHG 6WDWHV &RQVWLWXWLRQ SURYLGHV WKDW ³>Q@R VWDWH VKDOO
SDVV DQ\ H[ SRVW IDFWR ODZ´ 86 &RQVW DUW , †† FO
IXOO UHVWLWXWLRQ ZKLFK PXVW EH LPSRVHG ³ZLWKRXW
FRQVLGHUDWLRQ RI WKH HFRQRPLF FLUFXPVWDQFHV RI WKH
GHIHQGDQW´86&††$ D DQG I $
7KH UHPDLQLQJ TXHVWLRQ LV ZKHWKHU WKH 095$ RU WKH
9:3$ DSSOLHV WR WKH FULPHV FRPPLWWHG E\ WKH $SSHOODQW
7KHVWDWXWRU\QRWHVXQGHU86&†SURYLGHWKDWWKH
095$LQFOXGLQJ†$DUHWREHHIIHFWLYHWRWKHH[WHQW
FRQVWLWXWLRQDOO\SRVVLEOHIRUVHQWHQFLQJVLQFDVHVLQZKLFKWKH
GHIHQGDQWLVFRQYLFWHGRQRUDIWHU$SULO
7KHUH LV KRZHYHU D FRQVWLWXWLRQDO OLPLWDWLRQ RQ WKH
DSSOLFDWLRQRIWKH095$XQGHUWKH([3RVW)DFWRFODXVH
7RIDOOZLWKLQWKH([3RVW)DFWRSURKLELWLRQDODZPXVWEH
UHWURDFWLYHWKDWLVLWPXVWDSSO\WRHYHQWVRFFXUULQJEHIRUHLWV
HQDFWPHQWDQGLWPXVWGLVDGYDQWDJHWKHRIIHQGHUE\DOWHULQJ
WKH GHILQLWLRQ RI FULPLQDO FRQGXFW RU LQFUHDVLQJ WKH
SXQLVKPHQWIRUWKHFULPH6HH/\QFHY0DWKLV86
,QDGGLWLRQDPDMRULW\RIIHGHUDOFRXUWVWKDWKDYH
FRQVLGHUHGWKLVLVVXHKDYHKHOGWKDWUHWURDFWLYHDSSOLFDWLRQRI
WKH 095$ YLRODWHV WKH ([ 3RVW )DFWR &ODXVH &RPSDUH
8QLWHG 6WDWHV Y 5LFKDUGV )G WK &LU
KROGLQJ WKDW DSSOLFDWLRQ RI WKH 095$ WR DQ
LQGLYLGXDO¶VFRQGXFWWKDWRFFXUUHGSULRUWRLWVSDVVDJHZRXOG
YLRODWHWKH([3RVW)DFWRFODXVH 8QLWHG6WDWHVY6LHJHO
)G WK &LU VDPH 8QLWHG 6WDWHV Y
(GZDUGV)G G&LU VDPH 8QLWHG
6WDWHV Y %DJJHWW )G WK &LU
VDPH 8QLWHG6WDWHVY7KRPSVRQ)GQ
G&LU VDPH 8QLWHG6WDWHVY5H]DT)G
Q '&&LU VDPH 8QLWHG6WDWHVY:LOOLDPV
)G WK &LU VDPH ZLWK 8QLWHG
6WDWHV Y 1LFKROV )G WK &LU
KROGLQJWKDWUHWURDFWLYHDSSOLFDWLRQRIWKH095$GLG
QRW YLRODWH WKH ([ 3RVW )DFWR &ODXVH 8QLWHG 6WDWHV Y
1HZPDQ )G WK &LU VDPH 7KH
1R 8QLWHG6WDWHVY6FKXOWH
$SSHOODQW UHDGV WKHVH VWDWHPHQWV DV LQGLFDWLQJ WKDW WKH
GLVWULFW FRXUW GLG QRW FRPSUHKHQG WKDW LW KDG WKH DELOLW\ WR
GHSDUWGRZQZDUGDQ\IXUWKHUWKDQILYHOHYHOVIRUH[WUDRUGLQDU\
IDPLO\ FLUFXPVWDQFHV 7KH HYLGHQFH KRZHYHU VXJJHVWV
RWKHUZLVH%RWKRIWKHDERYHVWDWHPHQWVFOHDUO\GHPRQVWUDWH
WKHGLVWULFWMXGJH¶VFRJQL]DQFHRIWKHKLJKVWDQGDUGRISURRI
QHHGHGWRMXVWLI\VXFKDGUDVWLFGHSDUWXUHIURPWKH*XLGHOLQHV
$WUHVHQWHQFLQJWKHGLVWULFWMXGJHPDGHDWKRURXJKLQTXLU\
DGGUHVVLQJHDFKRIWKHDUHDVUDLVHGE\6FKXOWHDVUHDVRQVIRU
GRZQZDUG GHSDUWXUH IDPLO\ WLHV DQG UHVSRQVLELOLWLHV
H[WUDRUGLQDU\IDPLO\UHVSRQVLELOLW\YLFWLPOHVVFRQGXFWWKH
FKRLFHWRSURVHFXWHRQO\6FKXOWHDQGFRRSHUDWLRQZLWKVWDWH
DXWKRULWLHV:HLJKLQJWKHIDFWRUVDQGHPSKDVL]LQJWKHKLJK
EXUGHQRQ6FKXOWHWRGHPRQVWUDWHKRZKLVVLWXDWLRQGLIIHUHG
HQRXJKWRGHSDUWIURPWKH³KHDUWODQG´RIWKH*XLGHOLQHVWKH
GLVWULFW MXGJH FKRVH WR GHSDUW GRZQZDUG ILYH OHYHOV IRU
H[WUDRUGLQDU\ IDPLO\ UHVSRQVLELOLWLHV %HFDXVH WKHUH LV QR
HYLGHQFH WKDW WKH GLVWULFW MXGJH IDLOHG WR FRPSUHKHQG WKH
*XLGHOLQHVWKHUHLVQRPHULWWR$SSHOODQW¶VFODLPRIHUURUIRU
IDLOXUHWRGHSDUWDQDGGLWLRQDOQLQHOHYHOV
,,,
$SSHOODQW QH[W DUJXHV WKDW WKH VHQWHQFLQJ HQKDQFHPHQWV
LQFUHDVLQJKLVVHQWHQFHZHUHLPSURSHUO\DSSOLHGLQOLJKWRI
$SSUHQGL ,Q $SSUHQGL WKH 6XSUHPH &RXUW KHOG WKDW
VHQWHQFLQJ HQKDQFHPHQWV ZKLFK LQFUHDVH WKH VWDWXWRU\
PD[LPXP H[FHSWSULRUFRQYLFWLRQV PXVWEHSOHGDQGSURYHQ
WR D MXU\ EH\RQG D UHDVRQDEOH GRXEW +HUH $SSHOODQW
FRQFHGHVWKDWWKHVHQWHQFHRIWKHGLVWULFWFRXUWGLGQRWH[FHHG
WKHVWDWXWRU\PD[LPXPIRUWKHFULPHVFKDUJHG$SSHOODQW
KRZHYHUPDNHVWKHQRYHODUJXPHQWWKDW$SSUHQGLDOVRVKRXOG
DSSO\WR*XLGHOLQHHQKDQFHPHQWVHYHQZKHUHWKHVWDWXWRU\
PD[LPXPLVQRWH[FHHGHGDQGWKDWWKHVHHQKDQFHPHQWVDUH
TXHVWLRQVWKDWVKRXOGEHGHFLGHGE\DMXU\QRWDWULDOMXGJH
7KH KROGLQJ LQ $SSUHQGL KRZHYHU GRHV QRW UHPRYH WKLV
GLVFUHWLRQIURPDGLVWULFWMXGJHDQGWKHUHIRUH$SSHOODQW¶V
DUJXPHQWLVZLWKRXWPHULW

-- 5 of 6 --

8QLWHG6WDWHVY6FKXOWH 1R
,9
$SSHOODQWQH[WDVVHUWVWKDWWKHGLVWULFWFRXUWHUUHGLQIDLOLQJ
WRKROGDKHDULQJWRGHWHUPLQHWKHDPRXQWRIUHVWLWXWLRQWREH
SDLG WR WKH YLFWLPV RI WKH $SSHOODQW¶V RIIHQVH $SSHOODQW
VSHFLILFDOO\DUJXHVWKDWWKHGLVWULFWFRXUWRSHUDWHGXQGHUWKH
LQFRUUHFW XQGHUVWDQGLQJ WKDW UHVWLWXWLRQ ZDV PDQGDWRU\
$SSHOODQW¶V FODLP LV EDVHG RQ WKH SUHPLVH WKDW WKH GLVWULFW
FRXUWHUUHGEHFDXVHLWH[DPLQHGWKHTXHVWLRQRIUHVWLWXWLRQ
XQGHU WKH 0DQGDWRU\ 9LFWLPV 5HVWLWXWLRQ $FW RI
³095$´ UDWKHUWKDQWKH9LFWLP:LWQHVV3URWHFWLRQ$FWRI
³9:3$´
$SSHOODQWKRZHYHUGLGQRWUDLVHDQ\TXHVWLRQDV WRWKH
UHVWLWXWLRQ DVVLJQHG DW WKH RULJLQDO VHQWHQFLQJ DQG GLG QRW
UDLVHLWRQDSSHDO$WWKHUHVHQWHQFLQJWKHGLVWULFWFRXUWJDYH
WKH$SSHOODQWDQDGGLWLRQDORSSRUWXQLW\WRVXEPLWLQIRUPDWLRQ
WRVXSSRUWKLVDUJXPHQWWKDWUHVWLWXWLRQVKRXOGEHVRPHOHVVHU
DPRXQW7KH$SSHOODQWGLGQRWVXEPLWDQ\VXFKLQIRUPDWLRQ
$VDUHVXOWRIWKHIDLOXUHWRREMHFWE\WKH$SSHOODQWWKH
VWDQGDUGRIUHYLHZIRUKLVFKDOOHQJHWRWKHUHVWLWXWLRQRUGHULV
SODLQ HUURU 8QLWHG 6WDWHV Y +DOO )G WK
&LU 7KH 6L[WK &LUFXLW KDV KHOG WKDW ZKHUH QR
REMHFWLRQLVPDGHWRWKHRUGHURIUHVWLWXWLRQDWVHQWHQFLQJWKH
DSSHOODWH FRXUW UHYLHZV IRU SODLQ HUURU VHH DOVR 8QLWHG
6WDWHV Y %DUDMDV1XQH] )G WK &LU
IDLOXUHWRQRWLI\WKHGLVWULFWFRXUWRIDQ\FRQFHUQUHJDUGLQJ
GRZQZDUG GHSDUWXUH FRQVWLWXWHG IRUIHLWXUH RI WKH LVVXH EXW
SHUPLWWHGSODLQHUURUUHYLHZ 8QLWHG6WDWHVY7KRPDV
)G WK &LU SODLQ HUURU UHYLHZ ZKHQ
GHIHQGDQWIDLOHGWRREMHFW DW VHQWHQFLQJKHDULQJWRXSZDUG
GHSDUWXUH
7RHVWDEOLVKSODLQHUURUDGHIHQGDQWPXVWVKRZ WKDWDQ
HUURURFFXUUHGLQWKHGLVWULFWFRXUW WKDWWKHHUURUZDVSODLQ
LHREYLRXVRUFOHDU WKDWWKHHUURUDIIHFWHGGHIHQGDQW V
VXEVWDQWLDOULJKWVDQG WKDWWKLVDGYHUVHLPSDFWVHULRXVO\
DIIHFWHG WKH IDLUQHVV LQWHJULW\ RU SXEOLF UHSXWDWLRQ RI WKH
MXGLFLDOSURFHHGLQJV-RKQVRQY8QLWHG6WDWHV86
8QLWHG6WDWHVY7KRPDV)G
1R 8QLWHG6WDWHVY6FKXOWH
,Q WKH OHJLVODWLYH KLVWRU\ RI WKH 095$ WKH 6HQDWH &RPPLWWHH VWDWHG
EOXQWO\ ³,W LV WKH FRPPLWWHH¶V LQWHQW WKDW FRXUWV RUGHU IXOO UHVWLWXWLRQ WR DOO
LGHQWLILDEOH YLFWLPV RI FRYHUHG RIIHQVHV´ 6HQ 5HS 1R WK
&RQJ G 6HVV UHSULQWHG LQ 86&&$1
WK&LU GLVFXVVLQJDWOHQJWKWKHSODLQHUURUGRFWULQH
VHWIRUWKLQ8QLWHG6WDWHVY2ODQR86
+HUH WKH $SSHOODQW FLWHV DV HUURU WKH GLVWULFW FRXUW¶V
GHWHUPLQDWLRQ WKDW UHVWLWXWLRQ ZDV PDQGDWRU\ DQG WKDW WKH
095$DSSOLHGLQVWHDGRIWKH9:3$7KH$SSHOODQWQRWHV
WKDWDWWKHRULJLQDOVHQWHQFLQJKHDULQJWKHGLVWULFWFRXUWPDGH
WKHIROORZLQJFRPPHQW
6HFRQGO\ZLWKUHVSHFWWRWKHUHVWLWXWLRQLQWKLVFDVHLILW
ZHUH ZLWKLQ P\ SRZHU WR GHQ\ UHVWLWXWLRQ RU SURYLGH
RQO\KDOIUHVWLWXWLRQ,ZRXOGGRVREHFDXVHIUDQNO\,
ZDVDSSDOOHGDWWKHWHVWLPRQ\,KHDUGIURPWKHDOOHJHG
YLFWLPVLQWKLVFDVH
-$DW,QDGGLWLRQWKH$SSHOODQWFLWHVWKH9:3$ZKLFK
SURYLGHV WKDW D GLVWULFW FRXUW PXVW FRQVLGHU WKH IROORZLQJ
SURYLVLRQVLQGHWHUPLQLQJWKHDPRXQWRIUHVWLWXWLRQWRDZDUG
WKHDPRXQWRIORVVVXVWDLQHGE\WKHYLFWLP
WKHILQDQFLDOUHVRXUFHVRIWKHGHIHQGDQW
WKH ILQDQFLDO QHHGV DQG HDUQLQJ DELOLW\ RI WKH
GHIHQGDQWDQGGHSHQGHQWVDQG
RWKHUDSSURSULDWHIDFWRUV
86&† G
,Q$SULO&RQJUHVVSDVVHGWKH$QWLWHUURULVPDQG'HDWK
3HQDOW\$FWRI ³$('3$´ 3XE/1R
6WDW 7KH $('3$ LQFOXGHG WKH 095$ ZKLFK
DPHQGHG WKH 9:3$ 7KH 095$ DGGHG 6HFWLRQ $
ZKLFKUHTXLUHVPDQGDWRU\UHVWLWXWLRQWRYLFWLPVRIFHUWDLQ
FULPHVLQFOXGLQJRIIHQVHVDJDLQVWSURSHUW\XQGHU7LWOHDQG
LQFOXGLQJDQ\RIIHQVHFRPPLWWHGE\IUDXGRUGHFHLW)RUWKH
FRYHUHGRIIHQVHVXQGHU†$DGLVWULFWFRXUW³VKDOORUGHU´

-- 6 of 6 --