02a0231p.06

7KH +RQRUDEOH 'DQ $DURQ 3ROVWHU 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH 1RUWKHUQ 'LVWULFW RI 2KLR 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
:,//,$0 $ $17+21< ,,,
3HWLWLRQHU$SSHOODQW
Y
'21 '(:,77:DUGHQ
5HVSRQGHQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
1R²-DPHV/*UDKDP'LVWULFW-XGJH
$UJXHG-DQXDU\
'HFLGHGDQG)LOHG-XO\
%HIRUH5<$1DQG*,/0$1&LUFXLW-XGJHV32/67(5
'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 3DPHOD &RQJHU&R[ 2+,2 38%/,&
'()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU
$SSHOODQW'LDQH0DOORU\2)),&(2)7+($77251(<

-- 1 of 8 --

$QWKRQ\Y'H:LWW 1R
*(1(5$/ &ROXPEXV 2KLR IRU $SSHOOHH 21 %5,()
3DPHOD &RQJHU&R[ 2+,2 38%/,& '()(1'(5
&200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW 'LDQH
0DOORU\ 2)),&( 2) 7+( $77251(< *(1(5$/
&ROXPEXV2KLRIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
'$1 $$521 32/67(5 'LVWULFW -XGJH 3HWLWLRQHU
$SSHOODQW:LOOLDP$$QWKRQ\DVWDWHSULVRQHULQFDUFHUDWHG
IRU DJJUDYDWHG PXUGHU DSSHDOV WKH GLVWULFW FRXUW¶V RUGHU
GHQ\LQJKLVSHWLWLRQIRUDZULWRIKDEHDVFRUSXVILOHGSXUVXDQW
WR86&†7KHRQO\LVVXHRQDSSHDOLVZKHWKHUWKH
WULDO FRXUW¶V DGPLVVLRQ RI WKH WHVWLPRQ\ RI WZR ZLWQHVVHV
UHFRXQWLQJ VWDWHPHQWV PDGH E\ DQ RXWRIFRXUW GHFODUDQW
YLRODWHGWKH6L[WK$PHQGPHQW¶V&RQIURQWDWLRQ&ODXVH)RU
WKH IROORZLQJ UHDVRQV WKH GHFLVLRQ RI WKH GLVWULFW FRXUW LV
$)),50('
,%DFNJURXQG
2Q2FWREHUDMXU\FRQYLFWHG:LOOLDP$QWKRQ\RI
WKH DJJUDYDWHG PXUGHU RI 3DWULFLD 6PLWK ZLWK ILUHDUP
VSHFLILFDWLRQV$QWKRQ\ZDVVHQWHQFHGWROLIHLPSULVRQPHQW
ZLWKHOLJLELOLW\IRUSDUROHDWWKHHQGRIWZHQW\\HDUVSOXVWKUHH
\HDUVDGGLWLRQDOLQFDUFHUDWLRQIRUWKHILUHDUPVSHFLILFDWLRQ
6HYHUDOPRQWKVSULRUWRWKHPXUGHU6PLWKKDGILOHGIHORQ\
WKHIW FKDUJHV ZLWK WKH SROLFH DJDLQVW $QWKRQ\¶V IULHQG
5RPPHOO.QR[IRUVWHDOLQJDULQJIURPKHUDSDUWPHQWZKHQ
.QR[ZDVSHUIRUPLQJDURXWLQHSHVWH[WHUPLQDWLRQ.QR[
ZKRKDGDSULRUFULPLQDOUHFRUGIHDUHGJRLQJWRMDLOIRUWKH
WKHIW2QWKHHYHQLQJRI-DQXDU\5RPPHOO.QR[DQG
:LOOLDP$QWKRQ\GURYHWR6PLWK¶VDSDUWPHQWFRPSOH[ZLWK
5RPPHOO¶VEURWKHU-RKQ.QR[DQG5RPPHOO¶VJLUOIULHQG
0DU\ ³%XII\´ 3D\QH :KHQ WKH\ JRW WR WKH DSDUWPHQW
FRPSOH[-RKQDQG5RPPHOO.QR[VWD\HGLQWKHFDUZKLOH
3D\QHDQG$QWKRQ\ZDONHGWR6PLWK¶VGRRU$V6PLWKVWDUWHG

-- 2 of 8 --

$QWKRQ\Y'H:LWW 1R
,Q DQ\ HYHQW WKH DGPLVVLRQ RI 5RPPHOO¶V VWDWHPHQWV WR
5HJLQD WHOOLQJ KHU WKDW KH ZDQWHG 6PLWK VKRW EHFDXVH KH
GLGQ¶WZDQWWRJRWRMDLOWKDWKHLQWHQGHGWRSD\$QWKRQ\DQG
3D\QHSUHVXPDEO\IRUWKHLUVHUYLFHVDQGWKDWKHZDQWHG
KHUWROLHDERXWKLVZKHUHDERXWVWKHHYHQLQJRIWKHPXUGHU
DQGKHOSKLPFUHDWHDQDOLELGLGQRWYLRODWHWKH&RQIURQWDWLRQ
&ODXVH EHFDXVH WKH\ ZHUH GHFODUDWLRQV DJDLQVW 5RPPHOO¶V
SHQDO LQWHUHVW :LOOLDPVRQ Y 8QLWHG 6WDWHV 86

(YHQ LI WKRVH VWDWHPHQWV WKDW ZHUH QRW FOHDUO\ DJDLQVW
5RPPHOO¶VSHQDOLQWHUHVWZHUHLQVXIILFLHQWO\UHOLDEOHWREH
DGPLWWHGDWWULDOWKHLUDGPLVVLRQZRXOGFRQVWLWXWHKDUPOHVV
HUURU EHFDXVH RI RXU FRQFOXVLRQ WKDW WKH\ GLG QRW KDYH D
VXEVWDQWLDODQGLQMXULRXVHIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKH
MXU\¶V YHUGLFW %UHFKW 86 DW 3ULRU WR 5HJLQD
.QR[¶V WHVWLPRQ\ WKHUH ZDV VXIILFLHQW FRUURERUDWLQJ
WHVWLPRQ\IURP-RKQ.QR[DQG0DU\3D\QHGHVFULELQJWKH
HYHQWV RQ WKH HYHQLQJ RI 6PLWK¶V PXUGHU PDNLQJ 5HJLQD
.QR[¶V KHDUVD\ WHVWLPRQ\ LQ WKLV UHJDUG FXPXODWLYH ,Q
DGGLWLRQKDEHDVSHWLWLRQHUVDUHQRWHQWLWOHGWRUHOLHIEDVHGRQ
WULDOHUURUXQOHVVWKH\FDQHVWDEOLVKWKDWWKHHUURUUHVXOWHGLQ
DFWXDOSUHMXGLFHDQLVVXH$QWKRQ\QHYHUDGGUHVVHG0F*KHH
)GDW
,9&RQFOXVLRQ
%DVHG RQ WKH IRUHJRLQJ WKH GLVWULFW FRXUW¶V GHQLDO RI
$QWKRQ\¶VKDEHDVSHWLWLRQLV$)),50('
1R $QWKRQ\Y'H:LWW
3D\QH ZDV QRW FKDUJHG DQG -RKQ .QR[ SOHG JXLOW\ WR WKH OHVVHU
RIIHQVH RI PDQVODXJKWHU D SOHD WKDW ZDV ODWHU ZLWKGUDZQ 7KH VWDWH
XOWLPDWHO\ GURSSHG WKH FKDUJHV DJDLQVW -RKQ
7KH WHVWLPRQ\ RI WKH ZLWQHVVHV UHFRXQWHG EHORZ LV VHW IRUWK LQ WKH
RUGHU LQ ZKLFK WKH\ ZHUH FDOOHG
WRRSHQWKHGRRUVKHZDVVKRWDQGNLOOHGZLWK5RPPHOO¶V
JXQ6XEVHTXHQWO\5RPPHOO.QR[ DQG:LOOLDP$QWKRQ\
ZHUHSURVHFXWHGIRUDJJUDYDWHGPXUGHUDQGWULHGVHSDUDWHO\
$W$QWKRQ\¶VWULDOWKHVWDWHFDOOHG'HWHFWLYH-DPHV6FRWW
'HWHFWLYH 6FRWW WHVWLILHG WKDW KH LQYHVWLJDWHG WKH WKHIW RI
3DWULFLD 6PLWK¶V ULQJ $V D UHVXOW RI KLV LQYHVWLJDWLRQ
FULPLQDOFKDUJHVZHUHILOHGDJDLQVW5RPPHOO.QR[DIRUPHU
HPSOR\HHRI2KLR([WHUPLQDWLQJ&R7KHFKDUJHVDJDLQVW
5RPPHOOZHUHGURSSHGDIWHU6PLWK¶VPXUGHU
5RELQ'XQODSDUHVLGHQWRI6PLWK¶VDSDUWPHQWFRPSOH[
WHVWLILHGWKDWRQ-DQXDU\VKHKHDUGJXQVKRWVLQWKH
FRPSOH[DQGDIWHUKHDULQJWKHVKRWVORRNHGRXWKHUZLQGRZ
DQGVDZZKDWVKHEHOLHYHGWREHDZKLWHZRPDQZLWKVKRUW
ERXQF\KDLUUXQQLQJDZD\IURPWKHEXLOGLQJ6KHGLGQRWVHH
DQ\RQH HOVH LQ WKH FRXUW\DUG 6KH FDOOHG ZKHQ VKH
GLVFRYHUHGWKDWKHUQHLJKERU3DWULFLD6PLWKKDGEHHQVKRW
'HWHFWLYH %ULDQ /DF\ ZKR KHDGHG WKH LQYHVWLJDWLRQ RI
6PLWK¶VPXUGHUWHVWLILHGWKDWWKHSROLFHKDGQRLPPHGLDWH
VXVSHFWV$IHZGD\VODWHUKRZHYHUKHUHFHLYHGDWHOHSKRQH
FDOOIURPDIHPDOHQDPHG5HJLQD.QR[ ODWHULGHQWLILHGDV
5RPPHOO¶VZLIH ZKRFODLPHGWRKDYHLQIRUPDWLRQUHJDUGLQJ
6PLWK¶VPXUGHU+HSHUVXDGHGKHUWRFRPHWRWKHVWDWLRQDQG
DIWHUYHULI\LQJKHULGHQWLW\LQWHUYLHZHGKHU$VDUHVXOWRI
WKDWLQWHUYLHZWKHLQYHVWLJDWLRQIRFXVHGRQ5RPPHOO.QR[
-RKQ .QR[ D SHUVRQ QDPHG ³:LOO´ DQG D ZRPDQ QDPHG
³%XII\´5HJLQD.QR[DJUHHGWRDFFRPSDQ\SROLFHRIILFHUV
WR WKH DSDUWPHQW RI -RKQ .QR[ ZKHUH WKH\ IRXQG DQG
DSSUHKHQGHG -RKQ 5RPPHOO DQG DQ XQLGHQWLILHG ZRPDQ
'HWHFWLYH/DF\LQWHUYLHZHG-RKQ.QR[DQGWHVWLILHGWKDWDIWHU
WKH LQWHUYLHZ WKH IRXU VXVSHFWV UHPDLQHG WKH VDPH EXW KH

-- 3 of 8 --

$QWKRQ\Y'H:LWW 1R
FRXOG QRZ LGHQWLI\ ³%XII\´ DV 0DU\ 3D\QH DQG ³:LOO´ DV
:LOOLDP $QWKRQ\ 'HWHFWLYH /DF\ REVHUYHG SDUW RI
5RPPHOO¶VLQWHUYLHZDQGSHUVRQDOO\LQWHUYLHZHG5RPPHOO
DIWHUZKLFKKHDJDLQFRQILUPHGWKHVDPHIRXUVXVSHFWV
$IWHU'HWHFWLYH/DF\¶VWHVWLPRQ\EXWEHIRUHWKHVWDWHFDOOHG
0DU\3D\QHWKHWULDOFRXUWKHOGDSUHOLPLQDU\KHDULQJXQGHU
2KLR (YLG 5 RXWVLGH WKH SUHVHQFH RI WKH MXU\ WR
GHWHUPLQHWKHDGPLVVLELOLW\RI3D\QH¶V³KHDUVD\´WHVWLPRQ\
$WWKHFRQFOXVLRQRIWKHKHDULQJWKHWULDOMXGJHUXOHGWKDWWKH
VWDWHKDGVXIILFLHQWHYLGHQFHWRPDNHDSULPDIDFLHVKRZLQJ
RIDFRQVSLUDF\EXWWKDWLWZRXOGQHHGWRSUHVHQWLWVHYLGHQFH
LQWKHSURSHURUGHU
7KHUHDIWHU0DU\3D\QHWHVWLILHGWRWKHIROORZLQJIDFWV6KH
PHW5RPPHOO.QR[LQ1RYHPEHUDQGEHJDQDQLQWLPDWH
UHODWLRQVKLS ZLWK KLP 6KH ODWHU PHW 5RPPHOO¶V EURWKHU
-RKQDQG:LOOLDP$QWKRQ\ZKRZDVLQWURGXFHGWRKHUDV
5RPPHOO¶V³FRXVLQ´7KHIRXUVSHQWDORWRIWLPHWRJHWKHU
RIWHQ ZHQW WR D FOXE FDOOHG 'HH¶V DQG 5RPPHOO ³DOZD\V
FDOOHGWKHVKRWV´$WWKHWLPHRIWKHPXUGHU3D\QHZDVDZDUH
RIWKHWKHIWFKDUJHVEURXJKWDJDLQVW5RPPHOO2Q-DQXDU\
5RPPHOOFDOOHGDQGLQYLWHGKHURXW5RPPHOODUULYHG
DW 3D\QH¶V KRPH ZLWK -RKQ .QR[ DQG :LOOLDP $QWKRQ\
7KH\DOOJRWLQWR-RKQ¶VFDUDQGGURYHWR6PLWK¶VDSDUWPHQW
FRPSOH[8SRQDUULYDODWWKHDSDUWPHQWFRPSOH[5RPPHOO
SRLQWHGRXW6PLWK¶VDSDUWPHQW+HDVNHG3D\QHLIVKHZRXOG
DFFRPSDQ\$QWKRQ\WRWKHDSDUWPHQWDQGNQRFNRQWKHODG\¶V
GRRUZKRKDGILOHGFKDUJHVDJDLQVWKLP 5RPPHOO VRWKDW
$QWKRQ\ FRXOG WDON WR KHU DERXW GURSSLQJ WKH FKDUJHV
5RPPHOOWROG3D\QHWKDWKHZDQWHGKHUWRNQRFNRQWKHGRRU
EHFDXVHWKHZRPDQZRXOGQRWRSHQWKHGRRUIRUDEODFNPDQ
$QWKRQ\ EXW ZRXOG RSHQ LW IRU D ZKLWH ZRPDQ 3D\QH
3D\QHUHOXFWDQWO\DJUHHGWRGRLW$IWHU3D\QHNQRFNHGRQ
6PLWK¶V GRRU DQG 6PLWK EHJDQ XQORFNLQJ LW $QWKRQ\ WROG
3D\QHVKHFRXOGJREDFNWRWKHFDU2QKHUZD\EDFNWRWKH
FDUVKHKHDUGDJXQVKRW:KHQVKHWXUQHGVKHVDZ$QWKRQ\
UXQQLQJ WRZDUG KHU ZLWK D JXQ 6KH WHVWLILHG WKDW WKH JXQ
ORRNHGOLNHRQHVKHKDGSUHYLRXVO\VHHQ5RPPHOOFDUU\RQ
VHYHUDORFFDVLRQVDQGSXWLQWKHSRFNHWRIKHUFRDWZKHQWKH\
1R $QWKRQ\Y'H:LWW
$SSO\LQJWKHVHIDFWRUVWRWKHSUHVHQWFDVHZHFRQFOXGHWKDW
WKHDGPLVVLRQRI5RPPHOO¶VVWDWHPHQWVWR5HJLQD.QR[DWWKH
WULDORI:LOOLDP$QWKRQ\GLGQRWYLRODWHWKH&RQIURQWDWLRQ
&ODXVH EHFDXVH WKH\ FDUULHG SDUWLFXODUL]HG JXDUDQWHHV RI
WUXVWZRUWKLQHVV)LUVW5RPPHOOPDGHH[SUHVVDVVHUWLRQVRI
SDVWIDFWDVKHGHWDLOHGWKHHYHQWVRIWKHHYHQLQJOHDGLQJXSWR
6PLWK¶VPXUGHU6HFRQG5RPPHOOKDGSHUVRQDONQRZOHGJH
RIWKHIDFWVDVVHUWHGEHFDXVHE\DOODFFRXQWVKHZDVSUHVHQW
DW WKH DSDUWPHQW ZKHQ WKH PXUGHU RFFXUUHG 7KLUG WKH
OLNHOLKRRGWKDW5RPPHOO¶VUHFROOHFWLRQRIWKHIDFWVZDVIDXOW\
LVH[WUHPHO\UHPRWHEHFDXVHWKH\ZHUHPDGHRQWKHHYHQLQJ
RIWKHPXUGHUVKRUWO\DIWHULWRFFXUUHG)RXUWKLWLVXQOLNHO\
WKDW5RPPHOOIDEULFDWHGWKHIDFWVEHFDXVHKHYROXQWDULO\PDGH
WKHVWDWHPHQWVWRKLVZLIHLQWKHSULYDF\RIWKHLUKRPHDQG
WKH\ZHUHDJDLQVWKLVSHQDOLQWHUHVW6XFKVWDWHPHQWVPDGHWR
D IDPLO\ PHPEHU RU SHUFHLYHG DOO\ LQ FRQILGHQFH KDYH
SUHYLRXVO\EHHQGHHPHGVXIILFLHQWO\WUXVWZRUWK\6HH7RFFR
)GDW%UXWRQY3KLOOLSV)6XSSG
('0LFK 5RPPHOODSSDUHQWO\YLHZHGKLVZLIHDV
DQDOO\EHFDXVHKHDVNHGIRUKHUDVVLVWDQFHLQFUHDWLQJDQDOLEL
IRUKLPDQGFRQFHDOLQJWKHFULPH
$OWKRXJKXOWLPDWHO\FRQFOXGLQJWKDW5RPPHOO¶VVWDWHPHQWV
WR 5HJLQD .QR[ ERUH VXIILFLHQW LQGLFLD RI UHOLDELOLW\ WKH
GLVWULFW FRXUW H[SUHVVHG FRQFHUQ ZLWK UHJDUG WR WKH IRXUWK
'XWWRQIDFWRU7KHFRXUWTXRWLQJ/HHY,OOLQRLV86
SRLQWHGRXWWKDWD³FRGHIHQGDQW¶VFRQIHVVLRQ
LVSUHVXPSWLYHO\XQUHOLDEOHDVWRWKHSDVVDJHVGHWDLOLQJWKH
GHIHQGDQW¶V FRQGXFW RU FXOSDELOLW\ EHFDXVH WKRVH SDVVDJHV
PD\ZHOOEHWKHSURGXFWRIWKHFRGHIHQGDQW¶VGHVLUHWRVKLIWRU
VSUHDGEODPHFXUU\IDYRUDYHQJHKLPVHOIRUGLYHUWDWWHQWLRQ
WRDQRWKHU´7KHVHFRQFHUQVKRZHYHUDUHPRVWVDOLHQWZKHUH
D FRGHIHQGDQW LPSOLFDWHV D GHIHQGDQW LQ KLV FRQIHVVLRQ WR
DXWKRULWLHVZKRKDYHWKHGLVFUHWLRQWRWUHDWWKHFRGHIHQGDQW
OHQLHQWO\DQGWRSXUVXHFKDUJHVDJDLQVWKLVDFFRPSOLFH,QWKLV
FDVHKRZHYHU5RPPHOOLPSOLFDWHG$QWKRQ\LQGHVFULELQJ
WKHFULPHWRKLVZLIHRQWKHQLJKWRIWKHPXUGHU,WLVXQOLNHO\
WKDW KH FRQFRFWHG WKLV VWRU\ DQG VKDUHG LW ZLWK KLV ZLIH LQ
RUGHUWRVHFXUHVRPHIXWXUHOHJDOEHQHILW

-- 4 of 8 --

$QWKRQ\Y'H:LWW 1R
1HLWKHU SDUW\ GLVSXWHV WKDW 5RPPHOO ZDV XQDYDLODEOH WR WHVWLI\
SUHVXPDEO\ EHFDXVH KH ZRXOG KDYH H[HUFLVHG KLV )LIWK $PHQGPHQW ULJKW
DJDLQVW FRPSHOOHG VHOILQFULPLQDWLRQ
WRSURYHWKDW5RPPHOODFWXDOO\EHOLHYHG$QWKRQ\LQWHQGHGWR
WDON WR 6PLWK DERXW GURSSLQJ WKH FKDUJHV RU WKDW KH WUXO\
EHOLHYHG6PLWKZRXOGQRWRSHQWKHGRRUIRU$QWKRQ\UDWKHU
WKHVWDWHPHQWVZHUHDGPLVVLEOHWRVKRZZK\3D\QHZHQWWR
6PLWK¶VDSDUWPHQWZLWK$QWKRQ\5RPPHOO¶VWKUHDWWRKDUP
3D\QHZDVDGPLVVLEOHWRVKRZZK\VKHKHVLWDWHGWRFRQWDFW
SROLFHVRRQHU%HFDXVHWKHVHRXWRIFRXUWVWDWHPHQWVGRQRW
FRQVWLWXWH KHDUVD\ 3D\QH FRXOG SURSHUO\ WHVWLI\ WR WKHP
ZLWKRXWDQ\UHVXOWLQJYLRODWLRQRI$QWKRQ\¶VFRQVWLWXWLRQDO
ULJKWWRFRQIURQWDGYHUVHZLWQHVVHV
%
7KHGLVWULFWFRXUWFRQFOXGHGWKDWWKHDGPLVVLRQRI5HJLQD
.QR[¶V WHVWLPRQ\ UHJDUGLQJ KHU KXVEDQG¶V RXWRIFRXUW
VWDWHPHQWV GLG QRW YLRODWH IHGHUDO ODZ EHFDXVH LW ERUH
VXIILFLHQW LQGLFLD RI UHOLDELOLW\ :H DJUHH 2XWRIFRXUW
VWDWHPHQWV WKDW GR QRW ILW ZLWKLQ D ILUPO\ URRWHG KHDUVD\
H[FHSWLRQ GR QRW YLRODWH WKH &RQIURQWDWLRQ &ODXVH LI WKH\
SRVVHVV ³SDUWLFXODUL]HG JXDUDQWHHV RI WUXVWZRUWKLQHVV´
8QLWHG6WDWHVY7RFFR)G WK&LU
TXRWLQJ /LOO\ 86 DW 7KH JXDUDQWHHV PXVW EH
LQKHUHQWLQWKHFLUFXPVWDQFHVVXUURXQGLQJWKHWHVWLPRQ\LWVHOI
LWLVLQVXIILFLHQWWKDWRWKHUHYLGHQFHFRUURERUDWHVLW,G
,Q 'XWWRQ WKH 6XSUHPH &RXUW LGHQWLILHG IDFWRUV ³ZLGHO\
YLHZHG DV GHWHUPLQDWLYH RI ZKHWKHU D VWDWHPHQW PD\ EH
SODFHGEHIRUHWKHMXU\WKRXJKWKHUHLVQRFRQIURQWDWLRQRIWKH
GHFODUDQW´ 86 DW 7KHVH IDFWRUV LQFOXGH
ZKHWKHUWKHKHDUVD\VWDWHPHQWFRQWDLQHGDQH[SUHVVDVVHUWLRQ
RISDVWIDFW ZKHWKHUWKHGHFODUDQWKDGSHUVRQDONQRZOHGJH
RI WKH IDFW DVVHUWHG ZKHWKHU WKH SRVVLELOLW\ WKDW WKH
VWDWHPHQWZDVEDVHGXSRQDIDXOW\UHFROOHFWLRQLVUHPRWHLQ
WKHH[WUHPHDQG ZKHWKHUWKHFLUFXPVWDQFHVVXUURXQGLQJ
WKHVWDWHPHQWPDNHLWOLNHO\WKDWWKHGHFODUDQWIDEULFDWHGWKH
DVVHUWLRQRIIDFW'XWWRQ86DW
1R $QWKRQ\Y'H:LWW
ZHQWWR³WKHEDU´$QWKRQ\JUDEEHG3D\QHE\WKHDUPVDLG
³PRYHELWFK´DQGUDQWRWKHFDU$VWKHIRXUGURYHDZD\
IURP WKH DSDUWPHQW FRPSOH[ 3D\QH RSHQHG WKH GRRU DQG
YRPLWHG8SRQVHHLQJWKLV5RPPHOOWZLVWHGKHUDUPDQG
WKUHDWHQHGWRNLOOKHULIKHHYHQWKRXJKWVKHZRXOGWHOODQ\RQH
ZKDWRFFXUUHGWKDWHYHQLQJDGGLQJ³ULJKWJX\V"´±WRZKLFK
$QWKRQ\UHVSRQGHG³<RXJRWWKDWULJKWFX]´
-RKQ.QR[WHVWLILHGWKDWRQWKHHYHQLQJRI6PLWK¶VPXUGHU
KHDFFRPSDQLHG5RPPHOO3D\QHDQG$QWKRQ\RQZKDWKH
EHOLHYHGWREHDPDULMXDQDUXQ7KHJURXSVWRSSHGDW6PLWK¶V
DSDUWPHQWFRPSOH[EXWKHGLGQRWVHHZKLFKDSDUWPHQW3D\QH
DQG $QWKRQ\ YLVLWHG -RKQ GLG QRW VSHDN ZLWK 5RPPHOO
$QWKRQ\RU3D\QHDIWHUOHDYLQJWKHFRPSOH[DQGGLGQRWOLVWHQ
WRWKHFRQYHUVDWLRQ,QVWHDGKHOLVWHQHGWRORXGPXVLFRQWKH
FDUVWHUHR-RKQIXUWKHUWHVWLILHGWKDWDIWHUKHDQG5RPPHOO
ZHUHLQFXVWRG\5RPPHOOWROG-RKQWKDWKHZDQWHG-RKQWR
LPSOLFDWH3D\QHDQG$QWKRQ\LQ6PLWK¶VPXUGHUDQGWRWHOO
WKH SROLFH WKDW KH 5RPPHOO ZDV QRW DW WKH VFHQH -RKQ
UHIXVHGWRFKDQJHKLVVWRU\DQG5RPPHOOWKUHDWHQHGWRKDUP
KLVFKLOGUHQ
5RPPHOO¶V ZLIH 5HJLQD .QR[ WHVWLILHG WKDW 5RPPHOO
UHWXUQHG KRPH DW DERXW SP WKH HYHQLQJ RI 6PLWK¶V
PXUGHU+HWROGKHUWKDWKHZHQWWR6PLWK¶VDSDUWPHQWDORQJ
ZLWK KLV EURWKHU 3D\QH DQG $QWKRQ\ +H H[SODLQHG WKDW
3D\QHDQG$QWKRQ\ZHQWWR6PLWK¶VGRRUDQG3D\QHDVNHGWR
XVHWKHWHOHSKRQH+HVDLGWKDW$QWKRQ\VWHSSHGIURPWKH
VLGHRIWKHDSDUWPHQWDQGVKRW6PLWKLQWKHIDFHWKURXJKWKH
JODVV+HWROG5HJLQDWKDWKHSODQQHGWRSD\$QWKRQ\DQG
3D\QHHDFKIRUJRLQJDORQJZLWKWKHSODQDQGIXUWKHU
DVNHG 5HJLQD WR OLH LQ RUGHU WR FUHDWH DQ DOLEL IRU KLV
ZKHUHDERXWVGXULQJWKHWLPHRIWKHPXUGHU+HDVNHGKHU
KHOSLQVHDUFKLQJWKHKRXVHIRUVWUD\EXOOHWVLQWKHHYHQWWKH
KRXVH ZDV HYHQWXDOO\ VHDUFKHG +H WROG 5HJLQD WKDW KH
ZDQWHG6PLWKVKRWEHFDXVHKHGLGQRWZDQWWRJRWRMDLO2Q
-DQXDU\ 5HJLQD FRQWDFWHG WKH SROLFH DQG PDGH D
YLGHRWDSHG VWDWHPHQW WR 'HWHFWLYH %ULDQ /DF\ EHFDXVH VKH
ZDVVFDUHGDQGEHOLHYHGWKDW5RPPHOOVKRXOGEHSXQLVKHG
6KHIXUWKHUWHVWLILHGWKDW5RPPHOOFRQWDFWHGKHUQXPHURXV

-- 5 of 8 --

$QWKRQ\Y'H:LWW 1R
WLPHVZKLOHDZDLWLQJWULDOWRDVNKHUWROLHIRUKLPDQGVKH
LGHQWLILHGWKHPXUGHUZHDSRQDVEHORQJLQJWRKHUKXVEDQG
:LOOLDP$QWKRQ\SUHVHQWHGDQDOLELGHIHQVH+LVXQFOHDQG
DXQWWHVWLILHGWKDWRQWKHHYHQLQJRI6PLWK¶VPXUGHU$QWKRQ\
ZDVDWKRPHZLWKWKHPIURPWKHODWHDIWHUQRRQWKURXJK
SP
)ROORZLQJ KLV FRQYLFWLRQ $QWKRQ\ ILOHG D GLUHFW DSSHDO
DVVHUWLQJDPRQJRWKHUDUJXPHQWVWKDWWKHVWDWHIDLOHGWROD\
D SURSHU IRXQGDWLRQ WR DGPLW WKH KHDUVD\ VWDWHPHQWV RI
5RPPHOO.QR[DQGWKDWHYHQZLWKDSURSHUIRXQGDWLRQWKH
KHDUVD\ HYLGHQFH ZDV LPSURSHUO\ DGPLWWHG 7KH DSSHOODWH
SDQHOGHWHUPLQHGWKDW0DU\3D\QHWHVWLILHGWRWKHIROORZLQJ
WZRRXWRIFRXUWVWDWHPHQWV
WKDW5RPPHOODVNHGKHUWRNQRFNRQ6PLWK¶VGRRUVR
WKDW DSSHOODQW FRXOG WDON WR KHU DERXW GURSSLQJ WKH
FKDUJHVDQG WKDW5RPPHOOWKUHDWHQHG3D\QH¶VOLIHLI
VKHWROGDQ\RQHZKDWKDSSHQHGWKHUHWKDWQLJKW
6WDWHY$QWKRQ\)UDQNOLQ$SS1R$3$
:/DW 2KLR$SS2FW 7KHDSSHDOV
FRXUWIRXQGWKDWWKHSURVHFXWLRQLQWURGXFHGWKHILUVWVWDWHPHQW
EHIRUH HVWDEOLVKLQJ WKH H[LVWHQFH RI D FRQVSLUDF\ EHWZHHQ
5RPPHOODQG$QWKRQ\EXWFRQFOXGHG
7KHSUHPDWXUHLQWURGXFWLRQRIWKHVWDWHPHQWDOWKRXJK
LPSURSHUZDVQRWSUHMXGLFLDOWR>$QWKRQ\@EHFDXVHWKH
VWDWHFRXOGKDYHHOLFLWHGWKHVWDWHPHQWIURP3D\QHDWWKH
HQGRIKHUWHVWLPRQ\LQVWHDGRILQWKHPLGGOH
,G 7KDW VDLG WKH DSSHDOV FRXUW DOVR FRQFOXGHG WKDW WKH
WHVWLPRQ\ ZRXOG KDYH EHHQ DGPLVVLEOH WR H[SODLQ 3D\QH¶V
DFWLRQV ,G 7KH DSSHOODWH FRXUW VXPPDULO\ GLVPLVVHG
$QWKRQ\¶VDUJXPHQWUHJDUGLQJWKHDGPLVVLELOLW\RI5RPPHOO¶V
VWDWHPHQWV DV LQWURGXFHG WKURXJK WKH WHVWLPRQ\ RI 5HJLQD
.QR[
/LNHZLVHDSSHOODQW¶VDUJXPHQWVWKDW5HJLQD.QR[ ZKR
WHVWLILHG ODWHU >WKDQ 3D\QH@ WHVWLILHG SULRU WR WKH VWDWH
1R $QWKRQ\Y'H:LWW
)LQDOO\HUURULQDGPLVVLRQRIKHDUVD\WHVWLPRQ\E\WKHWULDO
FRXUWLVKDUPOHVVLILWGLGQRWKDYHD³VXEVWDQWLDODQGLQMXULRXV
HIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKHMXU\¶VYHUGLFW´%UHFKW
86DW³8QGHUWKLVVWDQGDUGKDEHDVSHWLWLRQHUV
DUHQRWHQWLWOHGWRKDEHDVUHOLHIEDVHGRQWULDOHUURUXQOHVVWKH\
FDQHVWDEOLVKWKDWLWUHVXOWHGLQμDFWXDOSUHMXGLFH¶´0F*KHH
Y<XNLQV)G WK&LU TXRWLQJ%UHFKW
86DW
$
,QWKHLQVWDQWFDVH0DU\3D\QHWHVWLILHGWRWZRRXWRIFRXUW
VWDWHPHQWV PDGH WR KHU E\ 5RPPHOO .QR[ )LUVW WKDW
5RPPHOO DVNHG KHU WR DFFRPSDQ\ $QWKRQ\ WR 6PLWK¶V
DSDUWPHQWWRNQRFNRQWKHGRRUVRWKDW$QWKRQ\FRXOGWDONWR
6PLWKDERXWGURSSLQJWKHFKDUJHVDJDLQVW5RPPHOODQGWKDW
KHQHHGHGKHUWRGRLWEHFDXVH6PLWKZRXOGQRWRSHQWKHGRRU
IRUDEODFNPDQ6HFRQGWKDW5RPPHOOWKUHDWHQHGKHUOLIHLI
VKHWROGDQ\RQHZKDWKDSSHQHGWKDWHYHQLQJ
7KHGHILQLWLRQRIKHDUVD\LVWKHVDPHXQGHUERWKWKH2KLR
DQG)HGHUDO5XOHVRI(YLGHQFH7KDWLVKHDUVD\LVGHILQHGDV
³D VWDWHPHQW RWKHU WKDQ RQH PDGH E\ WKH GHFODUDQW ZKLOH
WHVWLI\LQJDWWKHWULDORUKHDULQJRIIHUHGLQHYLGHQFHWRSURYH
WKHWUXWKRIWKHPDWWHUDVVHUWHG´2KLR(YLG5 & )HG
5(YLG F (YLGHQFHLVQRWKHDUVD\LILWLVQRWRIIHUHGWR
SURYH WKH WUXWK RI WKH PDWWHU DVVHUWHG 6HH HJ 6WDWH Y
6PLWK2KLR6WG1(G
6WDWHY*HER\2KLR$SSG1(G
6WDOERVN\Y%HOHZ)G WK&LU
8QLWHG6WDWHVY%UDQKDP)G WK&LU
8QLWHG6WDWHVY-RKQVRQ)G WK&LU
,QWKHFDVHVXEMXGLFH3D\QHZDVDSDUWLFLSDQWLQWKH
HYHQWVWKDWRFFXUUHGDW6PLWK¶VDSDUWPHQWRQWKHQLJKWRIWKH
PXUGHU$VVXFKVKHZLWQHVVHGDQGKHDUGHYHU\WKLQJDERXW
ZKLFKVKHWHVWLILHG+HUWHVWLPRQ\GLGQRWFRQVWLWXWHKHDUVD\
EHFDXVH WKH RXWRIFRXUW VWDWHPHQWV ZHUH DGPLVVLEOH WR
H[SODLQKHUDFWLRQVRQWKHQLJKWRIWKHPXUGHUDQGKHULQDFWLRQ
LQ DSSURDFKLQJ WKH DXWKRULWLHV DIWHUZDUGV )RU LQVWDQFH
5RPPHOO¶VVWDWHPHQWVWR3D\QHZHUHQRWQHFHVVDULO\RIIHUHG

-- 6 of 8 --

$QWKRQ\Y'H:LWW 1R
7R DGPLW D VWDWHPHQW XQGHU 5XOH ' H ILYH FRQGLWLRQV PXVW
EH PHW D FRQVSLUDF\ PXVW H[LVW WKH GHIHQGDQW PXVW KDYH EHHQ D
SDUWLFLSDQW LQ WKH FRQVSLUDF\ WKH GHFODUDQW PXVW KDYH EHHQ D
SDUWLFLSDQW LQ WKH FRQVSLUDF\ WKH VWDWHPHQW WR EH LQWURGXFHG PXVW KDYH
EHHQ PDGH LQ WKH FRXUVH RI WKH FRQVSLUDF\ DQG WKH VWDWHPHQW PXVW
KDYH EHHQ LQ IXUWKHUDQFH RI WKH FRQVSLUDF\ 6WDWH Y 0LOR 2KLR 6WG
1(G DEURJDWHG RQ DOW JURXQGV E\ 6WDWH
Y $GNLQV 2KLR $SSG 1(G
LQGHSHQGHQW SURRI´ 6WDWH Y &DUWHU 2KLR 6WG
V\OODEXV ˆ 1(G 2KLR 7KH 6XSUHPH
&RXUW RI 2KLR KDV KHOG KRZHYHU WKDW WKH SUHPDWXUH
DGPLVVLRQ RI FRFRQVSLUDWRU VWDWHPHQWV SULRU WR WKH
HVWDEOLVKPHQWRIWKHFRQVSLUDF\LVKDUPOHVVHUURUVRORQJDV
LQGHSHQGHQW SURRI RI WKH FRQVSLUDF\ ZDV DGPLWWHG LQWR
HYLGHQFHEHIRUHWKHFDVHZDVVXEPLWWHGWRWKHMXU\6WDWHY
-DORZLHF2KLR6WG1(G 2KLR

)LQGLQJWKDWDFRQVSLUDF\GRHVQRWQHFHVVDULO\HQGZLWKWKH
FRPPLVVLRQ RI D FULPH WKH 2KLR 6XSUHPH &RXUW KDV
LQWHUSUHWHGWKHODQJXDJHRI5XOH ' H WRSHUPLWWKH
DGPLVVLRQRIRXWRIFRXUWVWDWHPHQWVRIDFRFRQVSLUDWRUPDGH
GXULQJFRQFHDOPHQWRIWKHFULPH6WDWHY6KHOWRQ2KLR
6WG V\OODEXV ˆ 1(G ,Q WKLV
UHVSHFWWKH2KLRUXOHGLIIHUVIURPWKHWUDGLWLRQDOFRPPRQODZ
IRUPXODWLRQRIWKHFRFRQVSLUDWRUH[FHSWLRQZKLFKGRHVQRW
LQFOXGHVWDWHPHQWVPDGHGXULQJWKHFRQFHDOPHQWSKDVHRIWKH
FULPH'XWWRQ86DW FLWLQJ/XWZDNY8QLWHG6WDWHV
86 .UXOHZLWFKY8QLWHG6WDWHV86
(YHQLIWKHRXWRIFRXUWVWDWHPHQWLVQRWILUPO\
URRWHG WR D KHDUVD\ H[FHSWLRQ WKH VWDWHPHQW PD\ \HW EH
DGPLWWHG EXW RQO\ XSRQ ³D VKRZLQJ RI SDUWLFXODUL]HG
JXDUDQWHHVRIWUXVWZRUWKLQHVV´+LOO)GDW TXRWLQJ
2KLR Y 5REHUWV 86 DW 7KH ³SDUWLFXODUL]HG
JXDUDQWHHV´ DUH GHWHUPLQHG EDVHG XSRQ WKH WRWDOLW\ RI
FLUFXPVWDQFHVUHVWULFWHGWRWKRVHWKDWVXUURXQGWKHPDNLQJRI
WKHVWDWHPHQWDQGUHQGHUWKHGHFODUDQWSDUWLFXODUO\ZRUWK\RI
EHOLHI:ULJKW86DW
1R $QWKRQ\Y'H:LWW
KDYLQJSUHVHQWHGVXIILFLHQWHYLGHQFHRIDFRQVSLUDF\DUH
QRWZHOOWDNHQ
,G7KH6XSUHPH&RXUWRI2KLRGHQLHG$QWKRQ\¶VUHTXHVWIRU
OHDYHWRDSSHDOILQGLQJQRVXEVWDQWLDOFRQVWLWXWLRQDOTXHVWLRQ
6WDWHY$QWKRQ\2KLR6WG1(G
+LVSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHIZDVDOVRGHQLHG
2Q KDEHDV UHYLHZ $QWKRQ\ DJDLQ DUJXHG WKDW WKH VWDWH
IDLOHGWROD\DSURSHUIRXQGDWLRQIRUDGPLVVLRQRIWKHKHDUVD\
VWDWHPHQWVDWWULEXWHGWR5RPPHOO.QR[7KHGLVWULFWFRXUW
GHWHUPLQHGWKDW3D\QH¶VUHFRXQWLQJRI5RPPHOO¶VVWDWHPHQWV
GLGQRWGHQ\$QWKRQ\KLV6L[WK$PHQGPHQWULJKWWRFRQIURQW
ZLWQHVVHVEHFDXVHWKH\GLGQRWFRQVWLWXWHKHDUVD\³LQOLJKWRI
WKH FLUFXPVWDQFHV SUHVHQW´ ,W IXUWKHU GHWHUPLQHG WKDW WKH
DGPLVVLRQRI5RPPHOO¶VRXWRIFRXUWVWDWHPHQWVWR5HJLQD
.QR[DOVRGLGQRWYLRODWHWKH&RQIURQWDWLRQ&ODXVHEHFDXVH
XQGHU 'XWWRQ Y (YDQV 86 WKH\ ERUH
VXIILFLHQWLQGLFLDRIUHOLDELOLW\EDVHGRQWKHIDFWWKDWWKH\ZHUH
PDGH VKRUWO\ DIWHU WKH FULPH ZLWKLQ WKH FRQILQHV RI WKH
KXVEDQGZLIHUHODWLRQVKLSZHUHXWWHUHGYROXQWDULO\DQGZHUH
DJDLQVW5RPPHOO¶VSHQDOLQWHUHVW)LQDOO\FLWLQJ%UHFKWY
$EUDKDPVRQ86 DQG.RWWHDNRVY8QLWHG
6WDWHV86 WKHGLVWULFWFRXUWQRWHGWKDWHYHQ
LI5HJLQD¶VWHVWLPRQ\FRQVWLWXWHGLPSHUPLVVLEOHKHDUVD\WKH
VWDWHPHQWVGLGQRWKDYHD³VXEVWDQWLDODQGLQMXULRXVHIIHFW´RQ
WKHMXU\¶VYHUGLFW
,,6WDQGDUGRI5HYLHZ
:HUHYLHZGHQRYRDGLVWULFWFRXUW VGLVPLVVDORID†
SHWLWLRQEXWUHYLHZWKHFRXUW¶VIDFWXDOILQGLQJVIRUFOHDUHUURU
&DUVRQY%XUNH)G WK&LU 7KH
GLVWULFWFRXUWLVQRWDXWKRUL]HGWRJUDQWDKDEHDVSHWLWLRQZLWK
UHVSHFWWRDQ\FODLPWKDWZDVDGMXGLFDWHGRQWKHPHULWVLQWKH
VWDWHFRXUWVXQOHVVWKHDGMXGLFDWLRQUHVXOWHGLQDGHFLVLRQWKDW
ZDVFRQWUDU\WRRULQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQ
RIFOHDUO\HVWDEOLVKHGIHGHUDOODZRU ZDVEDVHG RQ DQ
XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH
HYLGHQFHSUHVHQWHGWRWKHVWDWHFRXUWV86&† G
8QGHUWKH³FRQWUDU\WR´FODXVHDIHGHUDOKDEHDVFRXUWPD\

-- 7 of 8 --

$QWKRQ\Y'H:LWW 1R
JUDQW WKH SHWLWLRQ LI WKH VWDWH FRXUW DUULYHV DW D FRQFOXVLRQ
RSSRVLWHWRWKDWUHDFKHGE\WKH6XSUHPH&RXUWRQDTXHVWLRQ
RIODZRULIWKHVWDWHFRXUWGHFLGHVDFDVHGLIIHUHQWO\WKDQWKH
6XSUHPH&RXUWKDVRQDVHWRIPDWHULDOO\LQGLVWLQJXLVKDEOH
IDFWV:LOOLDPVY7D\ORU86 8QGHU
WKH³XQUHDVRQDEOHDSSOLFDWLRQ´FODXVHDIHGHUDOKDEHDVFRXUW
PD\JUDQWWKHSHWLWLRQLIWKHVWDWHFRXUWLGHQWLILHVWKHFRUUHFW
JRYHUQLQJOHJDOSULQFLSOHIURPWKH6XSUHPH&RXUW¶VGHFLVLRQV
EXW XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH
SHWLWLRQHU¶VFDVH,G
,,,$QDO\VLV
7KH TXHVWLRQ SUHVHQWHG LV ZKHWKHU WKH RXWRIFRXUW
VWDWHPHQWVRI5RPPHOO.QR[DGPLWWHGWKURXJKWKHWHVWLPRQ\
RI0DU\3D\QHDQG5HJLQD.QR[GXULQJWKHWULDORI:LOOLDP
$QWKRQ\ YLRODWHG $QWKRQ\¶V 6L[WK $PHQGPHQW ULJKW WR
FRQIURQWZLWQHVVHV7KH&RQIURQWDWLRQ&ODXVHRIWKH6L[WK
$PHQGPHQW SURYLGHV ³,Q DOO FULPLQDO SURVHFXWLRQV WKH
DFFXVHGVKDOOHQMR\WKHULJKWWREHFRQIURQWHGZLWKWKH
ZLWQHVVHVDJDLQVWKLP´86&RQVWDPHQG9,,GDKRY
:ULJKW86 7KHSXUSRVHRIWKH&ODXVH
LVWR³HQVXUHWKHUHOLDELOLW\RIWKHHYLGHQFHDJDLQVWDFULPLQDO
GHIHQGDQWE\VXEMHFWLQJLWWRULJRURXVWHVWLQJLQWKHFRQWH[WRI
DQ DGYHUVDU\ SURFHHGLQJ EHIRUH WKH WULHU RI IDFW´ /LOO\ Y
9LUJLQLD 86 LQWHUQDO TXRWDWLRQ
RPLWWHG 6XFKWHVWLQJLVQRWSRVVLEOHZKHUHWKHJRYHUQPHQW
HQGHDYRUVWRSUHVHQWWKHKHDUVD\VWDWHPHQWVRIDQRXWRIFRXUW
GHFODUDQWWKURXJKWKHWHVWLPRQ\RIDZLWQHVV/LOO\86
DW FLWLQJ&DOLIRUQLDY*UHHQ86
7KH&RQIURQWDWLRQ&ODXVHUHDGOLWHUDOO\ZRXOGEDUWKHXVH
RIDOORXWRIFRXUWVWDWHPHQWVRIDGHFODUDQWZKRLVQRWSUHVHQW
DW WULDO KRZHYHU WKH 6XSUHPH &RXUW KDV UHMHFWHG VXFK DQ
H[WUHPH LQWHUSUHWDWLRQ RI WKLV &ODXVH 8QLWHG 6WDWHV Y
,VPRLOD)G WK&LU FHUWGHQLHG
86 FLWLQJ,GDKR86DW6KHUPDQY
6FRWW)G WK&LU FHUWGHQLHG86
,Q ,GDKR IRU H[DPSOH WKH 6XSUHPH &RXUW
QRWHG WKDW WKH &RQIURQWDWLRQ &ODXVH ³GRHV QRW QHFHVVDULO\
1R $QWKRQ\Y'H:LWW
SURKLELW WKH DGPLVVLRQ RI KHDUVD\ VWDWHPHQWV DJDLQVW D
FULPLQDO GHIHQGDQW HYHQ WKRXJK WKH DGPLVVLRQ RI VXFK
VWDWHPHQWVPLJKWEHWKRXJKWWRYLRODWHWKHOLWHUDOWHUPVRIWKH
&ODXVH´86DW FLWLQJ0DWWR[Y8QLWHG6WDWHV
86 3RLQWHUY7H[DV86
7KH6XSUHPH&RXUWKDVHVWDEOLVKHGDWZRSDUWWHVW
IRU GHWHUPLQLQJ ZKHWKHU KHDUVD\ LV DGPLVVLEOH XQGHU WKH
&RQIURQWDWLRQ&ODXVH+LOOY%ULJDQR)G
WK&LU FHUWGHQLHG86 FLWLQJ
2KLRY5REHUWV86 +HDUVD\HYLGHQFH
LVDGPLVVLEOHRQO\ZKHUH WKHGHFODUDQWLVXQDYDLODEOHDQG
WKH KHDUVD\ VWDWHPHQW EHDUV DGHTXDWH ³LQGLFLD RI
UHOLDELOLW\´+LOO)GDW FLWLQJ2KLRY5REHUWV
86 DW 5HOLDELOLW\ LV LQIHUUHG ZKHUH WKH RXWRIFRXUW
VWDWHPHQWLVVXEMHFWWRDILUPO\URRWHGKHDUVD\H[FHSWLRQ,G
7KH6XSUHPH&RXUWKDVGHWHUPLQHGWKDWLIWKHRXWRIFRXUW
GHFODUDQWLVDFRFRQVSLUDWRURIWKHGHIHQGDQWWKHSURVHFXWLRQ
QHHGQRWHVWDEOLVKWKHXQDYDLODELOLW\RIWKHGHFODUDQW8QLWHG
6WDWHVY,QDGL86 RUWKHUHOLDELOLW\RI
KLV VWDWHPHQWV %RXUMDLO\ Y 8QLWHG 6WDWHV 86
+RZHYHUWKH%RXUMDLO\KROGLQJLVOLPLWHGWRWKRVH
VWDWHPHQWV WKDW IDOO ZLWKLQ WKH WUDGLWLRQDO FRPPRQ ODZ
IRUPXODWLRQRIWKHKHDUVD\H[FHSWLRQ$WFRPPRQODZWKH
KHDUVD\ H[FHSWLRQ WKDW DOORZV HYLGHQFH RI DQ RXWRIFRXUW
VWDWHPHQWRIRQHFRQVSLUDWRUWREHDGPLWWHGDJDLQVWKLVIHOORZ
FRQVSLUDWRUDSSOLHVRQO\LIWKHVWDWHPHQWZDVPDGHGXULQJWKH
FRXUVHDQGLQIXUWKHUDQFHRIWKHFRQVSLUDF\'XWWRQ86
DW
7KH2KLR5XOHVRI(YLGHQFHSURYLGHWKDWDVWDWHPHQWLVQRW
KHDUVD\LILWLVPDGH³E\DFRFRQVSLUDWRURIDSDUW\GXULQJWKH
FRXUVHDQGLQIXUWKHUDQFHRIWKHFRQVSLUDF\XSRQLQGHSHQGHQW
SURRIRIWKHFRQVSLUDF\´2KLR(YLG5 ' H 8QGHU
2KLR SURFHGXUH WKH VWDWHPHQW RI D FRFRQVSLUDWRU LV QRW
DGPLVVLEOHXQWLO³WKHSURSRQHQWRIWKHVWDWHPHQWKDVPDGHD
SULPD IDFLH VKRZLQJ RI WKH H[LVWHQFH RI WKH FRQVSLUDF\ E\

-- 8 of 8 --