02a0374p.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
81,7(' 67$7(6 2) $0(5,&$
3ODLQWLII$SSHOOHH
Y
-26(3+ -(686 /23(=
0$57,1 628=$

'HIHQGDQWV$SSHOODQWV
;!

1
1RV

$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ
1R²-DPHV6*ZLQ'LVWULFW-XGJH
$UJXHG-DQXDU\
'HFLGHGDQG)LOHG2FWREHU
%HIRUH68+5+(,15,&+6,/(5DQG%$7&+(/'(5
&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 5LFKDUG $ &OLQH 0,7&+(// $//(1
&$7$/$12 %2'$&ROXPEXV2KLR5REHUW$5DWOLII
52%(576 6+,(/'6 *5((1 /$1'5< 5$7/,))

-- 1 of 6 --

8QLWHG6WDWHVY/RSH]HWDO 1RV
0RELOH $ODEDPD IRU $SSHOODQWV %ODV ( 6HUUDQR
$66,67$1781,7('67$7(6$77251(<&OHYHODQG
2KLR IRU $SSHOOHH 21 %5,() 5LFKDUG $ &OLQH
0,7&+(//$//(1&$7$/$12 %2'$&ROXPEXV
2KLR 5REHUW $ 5DWOLII 52%(576 6+,(/'6 *5((1
/$1'5< 5$7/,))0RELOH$ODEDPDIRU$SSHOODQWV
%ODV ( 6HUUDQR $66,67$17 81,7(' 67$7(6
$77251(<&OHYHODQG2KLRIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
6,/(5&LUFXLW-XGJH'HIHQGDQWV-RVHSK-HVXV/RSH]DQG
0DUWLQ6RX]DDSSHDOWKHLUFRQYLFWLRQVDQGVHQWHQFHVDULVLQJ
RXWRIDFRQVSLUDF\WRGLVWULEXWHFRFDLQH%RWK/RSH]DQG
6RX]D DVVHUW WKDW WKHLU VHQWHQFHV YLRODWH $SSUHQGL Y 1HZ
-HUVH\86 EHFDXVHWKHTXDQWLW\RIFRFDLQH
LQYROYHG LQ WKH FRQVSLUDF\ ZDV QHLWKHU DOOHJHG LQ WKH
LQGLFWPHQW QRU VXEPLWWHG WR WKH MXU\ ,Q DGGLWLRQ /RSH]
DSSHDOVWKHGLVWULFWFRXUW¶VGHQLDORIKLVPRWLRQWRVHYHUDQG
LWVGHWHUPLQDWLRQRIWKHDPRXQWRIFRFDLQHDWWULEXWDEOHWRKLP
$V VHW IRUWK EHORZ ZH $)),50 WKH FRQYLFWLRQV DQG
VHQWHQFHVIRUERWK/RSH]DQG6RXVD
%$&.*5281'
,Q/RSH]DQG6RX]DZHUHLQGLFWHGRQIHGHUDOGUXJ
FKDUJHV &RXQW FKDUJHG ERWK /RSH] DQG 6RX]D ZLWK
FRQVSLULQJWRGLVWULEXWHFRFDLQHDQGWRSRVVHVVFRFDLQHZLWK
LQWHQWWRGLVWULEXWHLQYLRODWLRQRI86&†&RXQW
FKDUJHG/RSH]ZLWKGLVWULEXWLQJDSSUR[LPDWHO\WHQNLORJUDPV
RIFRFDLQHLQYLRODWLRQRI86&† D
'XULQJWKHWULDO5RJHU:LOOLDPVDQLQPDWHDWWKH6XPPLW
&RXQW\ -DLO WHVWLILHG WKDW 6RX]D WDONHG DERXW WKH FKDUJHV
SHQGLQJDJDLQVWKLPZKLOHWKH\ZHUHLQMDLOWRJHWKHU6RX]D
WROG:LOOLDPVWKDWKHZDVFKDUJHGZLWKWUDQVSRUWLQJWR
NLORJUDPV RI FRFDLQH IURP /RV $QJHOHV WR &OHYHODQG
6RX]DVDLGWKDWWRZDV³WKHULJKWEDOOSDUNILJXUH´EXW

-- 2 of 6 --

8QLWHG6WDWHVY/RSH]HWDO 1RV
RIFRFDLQH'XUDQ%DQQHUWHVWLILHGWKDWKHUHFHLYHGDWRWDORI
DW OHDVW WKLUW\ NLORJUDPV IURP /RSH] )XUWKHU WHVWLPRQ\
HVWDEOLVKHG WKDW LQ 2FWREHU /DVWHU UHFHLYHG WHQ
NLORJUDPVRIFRFDLQHIURP/RSH]ZKLFKKHWXUQHGRYHUWR
JRYHUQPHQW DJHQWV %DVHG RQ WKLV WHVWLPRQ\ WKH GLVWULFW
FRXUW¶VIDFWXDOILQGLQJVDWWULEXWLQJLQH[FHVVRINLORJUDPV
RIFRFDLQHWR/RSH]ZHUHQRWFOHDUO\HUURQHRXV
$)),50('
1RV 8QLWHG6WDWHVY/RSH]HWDO
&RXQW DOOHJHG WKDW /RSH] GLVWULEXWHG DSSUR[LPDWHO\ WHQ NLORJUDPV
RI FRFDLQH KRZHYHU WKH GLVWULFW FRXUW LQVWUXFWHG WKH MXU\ WKDW WKH HYLGHQFH
³QHHG QRW HVWDEOLVK WKDW WKH DPRXQW RU TXDQWLW\ RI FRFDLQH ZDV DV DOOHJHG
LQ´ &RXQW &RXQW GLG QRW DOOHJH D VSHFLILF DPRXQW RI FRFDLQH
FODLPHGWKDWKH³ZDVMXVWKDQGOLQJWKHPRQH\´DQG³GLGQ¶W
NQRZKRZWKH\FRXOGLQGLFWKLPRQWKDW´
7KHMXU\UHWXUQHGYHUGLFWVILQGLQJERWKGHIHQGDQWVJXLOW\RI
WKH FRQVSLUDF\ FRXQW DQG /RSH] JXLOW\ RI WKH GLVWULEXWLRQ
FRXQW ,W PDGH QR ILQGLQJV DV WR WKH TXDQWLW\ RI FRFDLQH
LQYROYHGLQHLWKHUFKDUJH
$WVHQWHQFLQJWKHGLVWULFWFRXUWIRXQGE\DSUHSRQGHUDQFH
RIWKHHYLGHQFHWKDWDQDPRXQWLQH[FHVVRINLORJUDPVRI
FRFDLQH ZDV DWWULEXWDEOH WR HDFK GHIHQGDQW :LWK D WRWDO
RIIHQVH OHYHO RI DQG D FULPLQDO KLVWRU\ FDWHJRU\ RI ,,
/RSH]¶V JXLGHOLQHV UDQJH ZDV PRQWKV WR OLIH
LPSULVRQPHQW 7KH GLVWULFW FRXUW VHQWHQFHG KLP WR
PRQWKV¶ LPSULVRQPHQW RQ &RXQWV DQG WR EH VHUYHG
FRQFXUUHQWO\'XHWRWKHDPRXQWRIFRFDLQHLQYROYHGDQGKLV
WZRSULRUIHORQ\GUXJFRQYLFWLRQV6RX]DZDVVHQWHQFHGWRD
PDQGDWRU\WHUPRIOLIHLPSULVRQPHQWSXUVXDQWWR86&
† E $
',6&866,21
$ $SSUHQGL&KDOOHQJHV
%RWK/RSH]DQG6RX]DDVVHUWWKDWEHFDXVHWKHTXDQWLW\RI
FRFDLQH LQYROYHG LQ WKH FRFDLQH FRQVSLUDF\ ZDV QHLWKHU
DOOHJHG LQ WKH LQGLFWPHQW QRU VXEPLWWHG WR WKH MXU\ WKHLU
VHQWHQFHV PXVW EH YDFDWHG SXUVXDQW WR $SSUHQGL ,Q
$SSUHQGLWKH6XSUHPH&RXUWKHOGWKDW³>R@WKHUWKDQWKHIDFW
RIDSULRUFRQYLFWLRQDQ\IDFWWKDWLQFUHDVHVWKHSHQDOW\IRUD
FULPH EH\RQG WKH SUHVFULEHG VWDWXWRU\ PD[LPXP PXVW EH
VXEPLWWHGWRDMXU\DQGSURYHGEH\RQGDUHDVRQDEOHGRXEW´
$SSUHQGL86DW

-- 3 of 6 --

8QLWHG6WDWHVY/RSH]HWDO 1RV
7KH JRYHUQPHQW FRQWHQGV WKDW GHIHQGDQWV¶ $SSUHQGL
FKDOOHQJHVPXVWEHUHYLHZHGIRUSODLQHUURUEHFDXVHWKH\GLG
QRW UHTXHVW DQ LQVWUXFWLRQ UHTXLULQJ WKH MXU\ WR GHWHUPLQH
ZKHWKHUWKHRIIHQVHLQYROYHGDVSHFLILFRUWKUHVKROGTXDQWLW\
RIGUXJV$OWKRXJK/RSH]DQG6RX]DGLGQRWUHTXHVWVXFKDQ
LQVWUXFWLRQWKH\ILOHGZULWWHQREMHFWLRQVWRWKHGUXJTXDQWLW\
UHFRPPHQGHGE\WKHLUSUHVHQWHQFHLQYHVWLJDWLRQUHSRUWVDQG
PDGHRUDOREMHFWLRQVWRWKHGUXJTXDQWLW\GHWHUPLQDWLRQDW
WKHLUVHQWHQFLQJKHDULQJV:HIRUPHUO\KHOGWKDWDGHIHQGDQW
DGHTXDWHO\SUHVHUYHGKLV$SSUHQGLFKDOOHQJHE\REMHFWLQJWR
WKH GUXJ TXDQWLW\ GHWHUPLQDWLRQ 6HH 8QLWHG 6WDWHV Y
6WUD\KRUQ)G WK&LU ³>:@HEHOLHYH
WKHUHFRUGPDNHVSODLQWKDW6WUD\KRUQSUHVHUYHGKLVFKDOOHQJH
E\UHSHDWHGO\REMHFWLQJWRWKHGUXJTXDQWLW\GHWHUPLQDWLRQDW
KLVSOHDKHDULQJDQGDWKLVVHQWHQFLQJKHDULQJDVZHOODVLQD
ZULWWHQREMHFWLRQWRWKHFDOFXODWLRQRIKLVEDVHRIIHQVHOHYHO
LQKLVSUHVHQWHQFHUHSRUW$OWKRXJKKHGLGQRWXWWHUWKHZRUGV
μGXH SURFHVV¶ DW HLWKHU RI WKHVH KHDULQJV KH PDGH LW ZHOO
NQRZQ WKDW KH GLVSXWHG WKH GLVWULFW FRXUW¶V IDFWXDO ILQGLQJ
ZLWK UHVSHFW WR GUXJ TXDQWLW\´ VHH DOVR 8QLWHG 6WDWHV Y
+XPSKUH\ )G WK &LU ³7KH
SUHVHUYDWLRQRIDFRQVWLWXWLRQDOREMHFWLRQVKRXOGQRWUHVWRQ
PDJLFZRUGVLWVXIILFHVWKDWWKHGLVWULFWFRXUWEHDSSULVHGRI
WKHREMHFWLRQDQGRIIHUHGDQRSSRUWXQLW\WRFRUUHFWLW´
6LQFH WKH WLPH WKLV FDVH ZDV DUJXHG WZR VLJQLILFDQW
GHFLVLRQV8QLWHG6WDWHVY&RWWRQ6&W
DQG8QLWHG6WDWHVY6WHZDUW:/ WK&LU
6HSW KDYHH[SODLQHGWKHODZDVDSSOLHGWRWKHVH
GHIHQGDQWV,Q6WHZDUWZHKHOGWKDWDQ$SSUHQGLFKDOOHQJH
ZLOO EH UHYLHZHG IRU SODLQ HUURU ZKHUH DOWKRXJK WKH
GHIHQGDQWV REMHFWHG LQ WKH GLVWULFW FRXUW WR WKH TXDQWLW\ RI
GUXJVDWWULEXWHGWRWKHPIRUVHQWHQFLQJWKH\IDLOHGWRUDLVHLQ
WKHGLVWULFWFRXUWREMHFWLRQVEDVHGRQ$SSUHQGLRU-RQHVY
8QLWHG6WDWHV86 :HGLVWLQJXLVKHGWKH
VLWXDWLRQ LQ 6WHZDUW IURP 6WUD\KRUQ RQ WKH JURXQGV WKDW
QHLWKHU -RQHV QRU $SSUHQGL KDG EHHQ GHFLGHG ZKHQ WKH
6WUD\KRUQGHIHQGDQWVZHUHWULHGDQGVHQWHQFHG2QWKHRWKHU
KDQGWKH6WHZDUWGHIHQGDQWVZHUHVHQWHQFHGDIWHU-RQHVZDV
GHFLGHGEXWEHIRUH$SSUHQGLZDVGHFLGHG:HKHOGWKDWWKRVH
1RV 8QLWHG6WDWHVY/RSH]HWDO
WR UHSUHVHQW KLPVHOI /RSH] DVVHUWV WKDW LQ 6RX]D¶V FURVV
H[DPLQDWLRQRIZLWQHVVHV6RX]DDWWHPSWHGWRWHVWLI\DVWRKLV
LQQRFHQFH DQG WKH ZURQJV SHUSHWUDWHG DJDLQVW KLP E\
JRYHUQPHQW DJHQWV 6RX]D¶V TXHVWLRQLQJ ZDV IUHTXHQWO\
LQWHUUXSWHGE\REMHFWLRQVIURPWKHJRYHUQPHQWGLVUXSWLQJWKH
IORZ RI WKH WULDO 'XULQJ /RSH]¶V FURVVH[DPLQDWLRQ RI
9LFWRULD :HEVWHU 6RX]D LQWHUUXSWHG WR UHTXHVW KHDGDFKH
PHGLFDWLRQ$OWKRXJK6RX]D¶VVHOIUHSUHVHQWDWLRQPD\KDYH
GLVUXSWHGWKHIORZRIWKHSURFHHGLQJV/RSH]IDLOVWRVKRZ
KRZ 6RX]D¶V VHOIUHSUHVHQWDWLRQ VSHFLILFDOO\ DIIHFWHG KLP
$FFRUGLQJO\KHKDVQRWGHPRQVWUDWHGSODLQHUURU
& 'UXJ4XDQWLW\
/RSH]FRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHGLQDWWULEXWLQJLQ
H[FHVVRINLORJUDPVRIFRFDLQHWRKLPDVVHUWLQJWKDWWKH
FRUUHFW DPRXQW RI FRFDLQH UHOLDEO\ DWWULEXWDEOH WR KLP ZDV
NLORJUDPV:HUHYLHZIRUFOHDUHUURUWKHGLVWULFWFRXUW¶V
ILQGLQJVRIIDFWUHJDUGLQJWKHDPRXQWRIFRFDLQHIRUZKLFKD
GHIHQGDQWLVWREHKHOGDFFRXQWDEOH8QLWHG6WDWHVY:DOWRQ
)G WK&LU 7KHGLVWULFWFRXUW¶V
ILQGLQJV PXVW EH VXSSRUWHG E\ D SUHSRQGHUDQFH RI WKH
HYLGHQFH8QLWHG6WDWHVY%DUR)G WK&LU
:KHUHWKHDPRXQWLVXQFHUWDLQWKHGLVWULFWFRXUWLVWR
³HUU RQ WKH VLGH RI FDXWLRQ´ DQG RQO\ KROG WKH GHIHQGDQW
UHVSRQVLEOH IRU WKDW TXDQWLW\ RI GUXJV IRU ZKLFK ³WKH
GHIHQGDQW LV PRUH OLNHO\ WKDQ QRW DFWXDOO\ UHVSRQVLEOH´
:DOWRQ)GDW
7KH WHVWLPRQ\ DW WULDO HVWDEOLVKHG WKDW /RSH] EHJDQ WR
VXSSO\FRFDLQHWR'RQDOG/DVWHULQ1RYHPEHU2QWKH
ILUVWWZRRFFDVLRQV/DVWHUUHFHLYHGILYHNLORJUDPVRIFRFDLQH
7KHUHDIWHU/DVWHUUHFHLYHGWHQNLORJUDPVKLSPHQWVRIFRFDLQH
IURP/RSH]5REHUW0DUVKDOOWHVWLILHGWKDWKHPDGHEHWZHHQ
WHQ DQG WZHOYH WULSV WR WUDQVSRUW FRFDLQH IURP /RSH] WR
/DVWHUDQG9LFWRULD:HEVWHUWHVWLILHGWKDWVKHPDGHEHWZHHQ
WHQDQGWZHQW\WULSV$FRQVHUYDWLYHFRXQWRI WKHFRFDLQH
WUDQVSRUWHGE\0DUVKDOODQG:HEVWHULVNLORJUDPV,Q
DGGLWLRQ0DUN-HIIHUVRQWHVWLILHGWKDWKHWUDYHOHGZLWK/RSH]
IURP&KLFDJRWR&LQFLQQDWLDQG&ROXPEXVZLWKWHQNLORJUDPV

-- 4 of 6 --

8QLWHG6WDWHVY/RSH]HWDO 1RV
DVHULRXVULVNWKDWDMRLQWWULDOZRXOGFRPSURPLVHDVSHFLILF
WULDOULJKWRIRQHRIWKHGHIHQGDQWVRUSUHYHQWWKHMXU\IURP
PDNLQJDUHOLDEOHMXGJPHQWDERXWJXLOWRULQQRFHQFH´=DILUR
Y8QLWHG6WDWHV86 ³7KHIDFWWKDWD
GHIHQGDQWPD\KDYHDEHWWHUFKDQFHDWDFTXLWWDOLIKLVWULDO
ZHUHVHYHUHGGRHVQRWUHTXLUHWKHMXGJHWRJUDQWKLVPRWLRQ
WKH GHIHQGDQW PXVW VKRZ μVXEVWDQWLDO¶ μXQGXH¶ RU
μFRPSHOOLQJ¶SUHMXGLFH´8QLWHG6WDWHVY'H)UDQFR)G
WK&LU
/RSH]DUJXHVWKDWKHZDVSUHMXGLFHGE\WKHDGPLVVLRQRI
5RJHU :LOOLDPV¶V WHVWLPRQ\ ZKLFK ZRXOG QRW KDYH EHHQ
DGPLVVLEOH DJDLQVW /RSH] LQ D VHSDUDWH WULDO :LOOLDPV
WHVWLILHGWKDWKHVSHQWWLPHLQMDLOZLWK6RX]DDQGWKDW6RX]D
WROG KLP DERXW KLV LQYROYHPHQW LQ WKH FRFDLQH FRQVSLUDF\
/RSH] DUJXHV WKDW RWKHU WKDQ WKH WHVWLPRQ\ RI JRYHUQPHQW
DJHQWV:LOOLDPV¶VWHVWLPRQ\ZDVWKHRQO\GLUHFWWHVWLPRQ\DV
WRWKHJXLOWRIHLWKHUGHIHQGDQWWKDWGLGQRWFRPHIURPVRPH
RWKHUPHPEHURIWKHDOOHJHGFRQVSLUDF\VHHNLQJWRPLQLPL]H
KLV RU KHU FXOSDELOLW\ RU VHQWHQFH /RSH] DVVHUWV WKDW
:LOOLDPV¶VWHVWLPRQ\ZDVKLJKO\GDPDJLQJWR6RX]D¶VFDVH
DQGKDGDVSLOORYHUHIIHFWRQ/RSH]¶VFDVHLPSO\LQJ/RSH]¶V
JXLOWE\DVVRFLDWLRQ
:LOOLDPVGLGQRWPHQWLRQ/RSH]¶VQDPHRUKLVLQYROYHPHQW
LQWKHFRQVSLUDF\6HH8QLWHG6WDWHVY*DOOR)G
WK &LU ³0HUHO\ EHFDXVH LQIODPPDWRU\
HYLGHQFH LV DGPLWWHG DJDLQVW RQH GHIHQGDQW QRW GLUHFWO\
LQYROYLQJDQRWKHUFRGHIHQGDQWGRHVQRWLQDQGRILWVHOI
VKRZ VXEVWDQWLDO SUHMXGLFH LQ WKH ODWWHU¶V WULDO´
)XUWKHUPRUHDVSLOORYHURIHYLGHQFHIURPRQHFDVHWRDQRWKHU
JHQHUDOO\GRHVQRWUHTXLUHVHYHUDQFH$QGHUVRQ)GDW
/RSH]IDLOVWRGHPRQVWUDWH³VXEVWDQWLDO´³XQGXH´RU
³FRPSHOOLQJ´SUHMXGLFHGXHWRWKHDGPLVVLRQRI:LOOLDPV¶V
WHVWLPRQ\
,QDGGLWLRQ/RSH]DUJXHVWKDWKHZDVSUHMXGLFHGEHFDXVH
6RX]DUHSUHVHQWHGKLPVHOIDWWULDO$FFRUGLQJWR/RSH]WKH
GLVWULFWFRXUWZDVDZDUHRI6RX]D¶VPHQWDOFRQGLWLRQKDYLQJ
RUGHUHGDSV\FKLDWULFHYDOXDWLRQRI6RX]D\HWDOORZHG6RX]D
1RV 8QLWHG6WDWHVY/RSH]HWDO
6WHZDUWGHIHQGDQWVZKRKDGVXEPLWWHGZULWWHQREMHFWLRQVWR
WKHTXDQWLWLHVRIGUXJVDWWULEXWHGWRWKHPIRUVHQWHQFLQJEXW
KDGQRWFKDOOHQJHGWKHFRQVWLWXWLRQDOLW\RIWKHGLVWULFWFRXUW¶V
ILQGLQJ WKH TXDQWLW\ RI GUXJV E\ D SUHSRQGHUDQFH RI WKH
HYLGHQFHKDGIRUIHLWHGWKHULJKWWRDFRQVWLWXWLRQDOFKDOOHQJH
EDVHG RQ -RQHV RU $SSUHQGL 6HH 6WHZDUW :/
DW 6LPLODUO\WKHGHIHQGDQWVLQWKLVFDVH
ZHUH VHQWHQFHG DIWHU WKH GHFLVLRQ LQ -RQHV EXW EHIRUH WKH
GHFLVLRQLQ$SSUHQGL7KHUHIRUHZHUHYLHZXQGHUWKHSODLQ
HUURUVWDQGDUG
$VVXPLQJWKDWWKHHUURUXQGHU$SSUHQGLZDVSODLQWKHFRXUW
PXVWWKHQGHWHUPLQHZKHWKHUWKHHUURUHIIHFWHG VXEVWDQWLDO
ULJKWV&RWWRQ6&WDW0RUHRYHULIWKHHUURUGLG
DIIHFW VXEVWDQWLDO ULJKWV LI LW ³GLG QRW VHULRXVO\ DIIHFW WKH
IDLUQHVV LQWHJULW\ RU SXEOLF UHSXWDWLRQ RI MXGLFLDO
SURFHHGLQJV´ WKHQ LW GRHV QRW FDOO IRU D UHYHUVDO RI WKH
VHQWHQFH,G
/LNHWKHGHIHQGDQWVLQ6WHZDUW/RSH]DQG6RXVDREMHFWHG
WR WKH VSHFLILF TXDQWLWLHV RI GUXJV EXW GLG QRW UDLVH DQ\
FRQVWLWXWLRQDODUJXPHQWV7KHUHIRUHWKHLU$SSUHQGLFODLPV
ZHUHIRUIHLWHG,QWKHFDVHRI/RSH]WKHHUURUGLGQRWDIIHFW
KLV VXEVWDQWLDO ULJKWV EHFDXVH KH FRXOG KDYH UHFHLYHG D
VHQWHQFH RI PRQWKV EDVHG XSRQ FRQVHFXWLYH WHUPV DV
H[SODLQHGKHUHDIWHU
/RSH]
%DVHGLQSDUWRQLWVILQGLQJWKDW/RSH]ZDVUHVSRQVLEOHIRU
LQ H[FHVV RI NLORJUDPV RI FRFDLQH WKH GLVWULFW FRXUW
VHQWHQFHG KLP WR D WHUP RI PRQWKV¶ LPSULVRQPHQW RQ
&RXQWVDQGWREHVHUYHGFRQFXUUHQWO\:LWKRXWDMXU\
ILQGLQJEH\RQGDUHDVRQDEOHGRXEWWKDWKLVRIIHQVHVLQYROYHG
WKHPLQLPXPDPRXQWVRIFRFDLQHUHTXLUHGE\† E $
DQG† E % /RSH]VKRXOGKDYHEHHQVHQWHQFHGXQGHU
† E & ZKLFKVHWVIRUWKWKHSHQDOWLHVIRURIIHQVHVWKDW
GRQRWVSHFLI\DTXDQWLW\RIGUXJVLQYROYHG6HH8QLWHG6WDWHV
Y5DPLUH])G WK&LU 7KHPD[LPXP
SHQDOW\ XQGHU † E & LV WZHQW\ \HDUV /RSH]¶V

-- 5 of 6 --

8QLWHG6WDWHVY/RSH]HWDO 1RV
VHQWHQFHRIPRQWKVH[FHHGVWKHWZHQW\\HDUPD[LPXP
SHQDOW\XQGHU† E & DQGWKXVYLRODWHV$SSUHQGL
7KH $SSUHQGL YLRODWLRQ KRZHYHU FRQVWLWXWHV KDUPOHVV
HUURU,Q8QLWHG6WDWHVY3DJH)G WK&LU
WKHGHIHQGDQWVZHUHFRQYLFWHGQRWRQO\RIFRQVSLUDF\EXWDOVR
RIRQHRUPRUHFRXQWVRIGLVWULEXWLRQDQGRUSRVVHVVLRQZLWK
LQWHQW WR GLVWULEXWH HDFK RI ZKLFK FDUULHV D VWDWXWRU\
PD[LPXPSHQDOW\RIWZHQW\\HDUVXQGHU† E & 7KH
FRXUWVWDWHGWKDW
WKH WRWDO VWDWXWRU\ PD[LPXP LV GUDPDWLFDOO\ LQFUHDVHG
GHSHQGLQJ RQ WKH QXPEHU RI FRXQWV RI ZKLFK HDFK
GHIHQGDQWZDVFRQYLFWHG7KHJRYHUQPHQWDUJXHVWKDW
WKHUH ZRXOG EH QR FKDQJH LQ GHIHQGDQWV¶ VHQWHQFHV LI
UHPDQGHG IRU UHVHQWHQFLQJ 5DWKHU WKDQ UXQQLQJ WKH
VHQWHQFHVFRQFXUUHQWO\WKH6HQWHQFLQJ*XLGHOLQHVZRXOG
UHTXLUHWKDWWKHVHQWHQFHLPSRVHGRQRQHRUPRUHRIWKH
VXEVWDQWLYHFRXQWVUXQFRQVHFXWLYHWRWKHVHQWHQFHRQWKH
FRQVSLUDF\FRXQWWRWKHH[WHQWQHFHVVDU\WRSURGXFHD
FRPELQHGVHQWHQFHHTXDOWRWKHWRWDOSXQLVKPHQW
3DJH)GDWVHHDOVR866*†* G ³,IWKH
VHQWHQFHLPSRVHGRQWKHFRXQWFDUU\LQJWKHKLJKHVWVWDWXWRU\
PD[LPXPLVOHVVWKDQWKHWRWDOSXQLVKPHQWWKHQWKHVHQWHQFH
LPSRVHG RQ RQH RU PRUH RI WKH RWKHU FRXQWV VKDOO UXQ
FRQVHFXWLYHO\EXWRQO\WRWKHH[WHQWQHFHVVDU\WRSURGXFHD
FRPELQHG VHQWHQFH HTXDO WR WKH WRWDO SXQLVKPHQW´
5HYLHZLQJIRUSODLQHUURUWKHFRXUWIRXQGWKDWWKHGHIHQGDQWV
³ZHUHQRWSUHMXGLFHGDQGWKDWWKHIDLUQHVVRIWKHSURFHHGLQJV
ZDV QRW DIIHFWHG E\ WKH HUURU VLQFH DEVHQW WKH HUURU WKHLU
VHQWHQFHV ZRXOG KDYH EHHQ WKH VDPH DV WKRVH ZKLFK ZHUH
LPSRVHG´3DJH)GDW
/LNHWKHGHIHQGDQWVLQ3DJH/RSH]ZDVFRQYLFWHGRIRQH
FRXQWRIFRQVSLUDF\DVZHOODVRQHFRXQWRIGLVWULEXWLRQ,I
/RSH] ZHUH UHVHQWHQFHG SURSHUO\ LQ OLJKW RI $SSUHQGL WKH
VHQWHQFHV IRU HDFK FRXQW ERWK RI ZKLFK FDUU\ D VWDWXWRU\
PD[LPXP RI WZHQW\ \HDUV ZRXOG UXQ FRQVHFXWLYHO\ XQWLO
UHDFKLQJPRQWKV PRQWKVRQWKHFRQVSLUDF\FRXQW
DQG PRQWKV RQ WKH GLVWULEXWLRQ FRXQW ZLWKLQ WKH
1RV 8QLWHG6WDWHVY/RSH]HWDO
FRPELQHG VWDWXWRU\ PD[LPXP RI IRUW\ \HDUV 7KHUHIRUH
/RSH]ZDVQRWSUHMXGLFHGE\WKH$SSUHQGLYLRODWLRQDQGWKH
HUURUZDVKDUPOHVV6HH)HG5&ULP3 D ³$Q\HUURU
GHIHFW LUUHJXODULW\ RU YDULDQFH ZKLFK GRHV QRW DIIHFW
VXEVWDQWLDOULJKWVVKDOOEHGLVUHJDUGHG´
6RX]D
'XHWRWKHDPRXQWRIFRFDLQHLQYROYHGDQGKLVWZRSULRU
IHORQ\GUXJFRQYLFWLRQVWKHGLVWULFWFRXUWVHQWHQFHG6RX]DWR
DPDQGDWRU\WHUPRIOLIHLPSULVRQPHQWSXUVXDQWWR86&
† E $ 7KHUHIRUH WKH $SSUHQGL HUURU GLG DIIHFW
6RXVD¶VVXEVWDQWLDOULJKWV1HYHUWKHOHVVOLNHWKHGHIHQGDQWLQ
&RWWRQWKHHUURUKHUHGLG QRWVHULRXVO\DIIHFWWKHIDLUQHVV
LQWHJULW\RUSXEOLFUHSXWDWLRQRIMXGLFLDOSURFHHGLQJV7KH
VWDWXWH XQGHU ZKLFK KH ZDV VHQWHQFHG 86&
† E $ JRYHUQVRIIHQVHVLQYROYLQJILYHNLORJUDPVRU
PRUHRIFRFDLQH7KHHYLGHQFHDJDLQVWKLPZLWKUHJDUGWR
GUXJ TXDQWLW\ ZDV RYHUZKHOPLQJ DQG DW OHDVW DV WR WHQ
NLORJUDPVRIFRFDLQHXQFRQWHVWHG$WWKHVHQWHQFLQJKHDULQJ
KLVFRXQVHODUJXHGWKDWWKHTXDQWLW\ZLWKZKLFK6RXVDKDG
EHHQLQYROYHGZDVVXEVWDQWLDOO\OHVVWKDQWKHWRWDOLQFOXGHGLQ
WKHFRQVSLUDF\DQGWKDWWKHTXDQWLW\DWWULEXWDEOHWR6RXVDZDV
³RQO\DERXWWHQNLORJUDPV´7KHUHIRUHKLVVHQWHQFHZLOOEH
DIILUPHGXQGHUWKHDXWKRULW\RI&RWWRQ
% 0RWLRQWR6HYHU
/RSH]DOVRDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGLQGHQ\LQJKLV
SUHWULDO PRWLRQ WR VHYHU KLV WULDO IURP 6RX]D¶V WULDO 7KH
GHQLDO RI D PRWLRQ WR VHYHU LV UHYLHZHG IRU DEXVH RI
GLVFUHWLRQ8QLWHG6WDWHVY$QGHUVRQ)G
WK&LU 6LQFH/RSH]IDLOHGWRUHQHZKLVPRWLRQWR
VHYHUDWWKHFORVHRIHYLGHQFHZHFDQUHYHUVHRQO\XSRQD
VKRZLQJRISODLQHUURU,G
$VDJHQHUDOUXOHSHUVRQVMRLQWO\LQGLFWHGVKRXOGEHWULHG
WRJHWKHUEHFDXVH³WKHUHLVDOPRVWDOZD\VFRPPRQHYLGHQFH
DJDLQVWWKHMRLQHGGHIHQGDQWVWKDWDOORZVIRUWKHHFRQRP\RI
DVLQJOHWULDO´8QLWHG6WDWHVY3KLEEV)G
WK&LU 6HYHUDQFHVKRXOGEHJUDQWHG³RQO\LIWKHUHLV

-- 6 of 6 --