Argentine v. United Steelworkers

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  $UJHQWLQHHWDOY8QLWHG 1RV 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

6WHHOZRUNHUVRI$P (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

FRPLFDOO\VPDOOWKHULJKWWRUHDGWKHSODLQWLIIjVRQHOHWWHU ZH QRQHWKHOHVV KHOG E\ LPSOLFDWLRQ WKDW LW PD\ 81,7('67$7(6&28572)$33($/6 GLVSURSRUWLRQDWHO\EHQHILWWKHXQLRQPHPEHUVLIWKH\GLGQRW KHOSIRRWWKHOHJDOELOO )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB $VWKHVHFDVHVGHPRQVWUDWHWKHSURSRUWLRQDOLW\RIEHQHILW WR FRVW LQ DQ /05'$ DFWLRQ OLNH WKH DZDUG RI SXQLWLYH GDPDJHVGRHVQRWDGPLWWRDQHDV\FDOFXOXV&I%0:RI1 $P ,QF Y *RUH  86     8OWLPDWHO\ &+$5/(6 $5*(17,1( s2+1 ; SURSRUWLRQDOLW\LVLQHVFDSDEO\DIDFWLQWHQVLYHLQYHVWLJDWLRQ *22&+ 526( $11 :,1*2  3ODLQWLIIVZKRGHI\DSDUWLFXODUO\HJUHJLRXVDEXVHRISRZHU ILGXFLDU\IRUWKHHVWDWHRI  WKURXJKDQ/05'$DFWLRQPD\FRQIHUDJUHDWHUEHQHILWXSRQ  1RV &/$5(1&( :,1*2   WKDW XQLRQjV PHPEHUVKLS WKDQ D SODLQWLII ZKR EULQJV VXLW DJDLQVW D OHVV HJUHJLRXV YLRODWRU  7KH FRPPRQ EHQHILW 3ODLQWLIIV$SSHOOHHV !  H[FHSWLRQLVDQH[HUFLVHRIDFRXUWjVHTXLWDEOHSRZHUV+DOO &URVV$SSHOODQWV  86DWDQGOLNHDQ\HTXLWDEOHUHPHG\LWVSURSULHW\  ZLOOFKDQJHIURPFLUFXPVWDQFHWRFLUFXPVWDQFH6HH/XVVLHU Y  Y5XQ\RQ)GVW&LUQRWLQJWKDW  mWKH KDOOPDUNV RI HTXLW\ KDYH ORQJ EHHQ IOH[LELOLW\ DQG  SDUWLFXODULW\l 81,7(' 67((/:25.(56 2)  $0(5,&$ $)/&,2 &/&  )RUWKDWUHDVRQ,EHOLHYHZHVKRXOGEHPRUHGHIHUHQWLDOWR 'HIHQGDQW$SSHOODQW  WKHWULDOFRXUWDQGVKRXOGGLVWXUEWKHGLVWULFWFRXUWjVGHFLVLRQ &URVV$SSHOOHH  RQO\ ZKHUH WKH SURSRUWLRQ EHWZHHQ EHQHILW WR WKH XQLRQ  PHPEHUVDQGFRVWWRWKHSODLQWLIIVLVFOHDUO\XQVXSSRUWHGE\ 1 WKHUHFRUG&I0XUUD\Y/DERUHUV8QLRQ/RFDO1R )G    Q WK &LU  KROGLQJ WKDW WKH $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW TXHVWLRQRIZKHWKHUDSODLQWLIIKDVFRQIHUUHGDmVXEVWDQWLDO IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV EHQHILWlWRSHUPLWDZDUGRIDWWRUQH\IHHVLVUHYLHZHGIRUFOHDU 1Rn$OJHQRQ/0DUEOH\'LVWULFWsXGJH HUURU7KHUHZDVFOHDUO\VXIILFLHQWHYLGHQFHLQWKLVFDVHIRU WKH GLVWULFW FRXUW WR FRQFOXGH WKDW WKH XQLRQ KDG EHKDYHG $UJXHG1RYHPEHU SDUWLFXODUO\EDGO\DQGWKDWWKHXQLRQPHPEHUVjULJKWVZHUH VHULRXVO\MHRSDUGL]HG,WZDVWKHUHIRUHUDWLRQDOIRUWKHFRXUW 'HFLGHGDQG)LOHG$SULO WRFRQFOXGHWKHXQLRQPHPEHUVVKRXOGSD\WKHLUSRUWLRQRIWKH OLWLJDWLRQFRVWV)RUWKHVHUHDVRQV,UHVSHFWIXOO\GLVVHQW %HIRUH68+5+(,15,&+DQG&2/(&LUFXLWsXGJHV &2//,(5'LVWULFWsXGJH

7KH +RQRUDEOH &XUWLV / &ROOLHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ

  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

BBBBBBBBBBBBBBBBB PRQHWDU\DZDUG)GDW7KHUDWLRQDOHZDVWKDW WKHIHHDZDUGPXVWmRSHUDWHVRDVWRLPSRVHWKHEXUGHQLQ &2816(/ SURSRUWLRQWRWKHEHQHILWVUHFHLYHGl,GDW $5*8('  $QGUHZ ' 5RWK %5('+2))  .$,6(5 7KHFDWFKRIFRXUVHLVZKDWLVSURSRUWLRQDO"7KHXQVWDWHG :DVKLQJWRQ '& IRU $SSHOODQW  ,UD s 0LUNLQ *5((1 DVVXPSWLRQLQ6KLPPDQLVWKDWWKHXQLRQPHPEHUVj7LWOH, +$,1(66*$0%$7,&203$1<

s$DW 86:$LVWKHFROOHFWLYHEDUJDLQLQJUHSUHVHQWDWLYHIRUWKH XQLRQL]HGHPSOR\HHVDW7LPHW7KHSUDFWLFHRI86:$LVWR 7KHPDMRULW\FRQFHGHVWKDW3ODLQWLIIVLQYLQGLFDWLQJWKHLU ZRUN RXW D WHQWDWLYH DJUHHPHQW ZLWK D FRPSDQ\ DQG WKHQ RZQIUHHVSHHFKULJKWVmEHQHILWWHGWKH/RFDODVDZKROHl VXEPLWLWWRWKHORFDOXQLRQIRUGHEDWHDQGUDWLILFDWLRQ7KH 0DMRULW\DW7KLVSHUFHSWLRQLVIXOO\VXSSRUWHGE\+DOOY XQLRQPHPEHUVWKHQYRWHRQZKHWKHUWRUDWLI\WKHSURSRVHG &ROH FROOHFWLYHEDUJDLQLQJDJUHHPHQWm&%$l :KHQDXQLRQPHPEHULVGLVFLSOLQHGIRUWKHH[HUFLVHRI 3ODLQWLIIV &KDUOHV $UJHQWLQH &ODUHQFH :LQJR DQG sRKQ DQ\ RI WKH ULJKWV SURWHFWHG E\ 7LWOH , WKH ULJKWV RI DOO *RRFK ZHUH PHPEHUV RI /RFDO  ZKR ZHUH HOHFWHG DV PHPEHUVRIWKHXQLRQDUHWKUHDWHQHG$QGE\YLQGLFDWLQJ /RFDORIILFHUVLQ$VSDUWRIWKHLUFDPSDLJQ3ODLQWLIIV KLVRZQULJKWWKHVXFFHVVIXOOLWLJDQWGLVSHOVWKHmFKLOOl SURPLVHGQRWWRJLYHDQ\PRUHFRQFHVVLRQVWR7LPHWLQIXWXUH FDVWXSRQWKHULJKWVRIRWKHUV,QGHHGWRWKHH[WHQWWKDW DJUHHPHQWV  :KHQ 3ODLQWLIIV ZHUH HOHFWHG LQ  VXFK ODZVXLWV FRQWULEXWH WR WKH SUHVHUYDWLRQ RI XQLRQ QHJRWLDWLRQV ZHUH XQGHUZD\ IRU D QHZ &%$  7KH 86:$ GHPRFUDF\WKH\IUHTXHQWO\SURYHEHQHILFLDOQRWRQO\LQ GLVWULFWGLUHFWRURYHUVHHLQJ/RFDOsLP%RZHQZDVWKH WKHLPPHGLDWHLPSDFWRIWKHUHVXOWVDFKLHYHGEXWLQWKHLU OHDGQHJRWLDWRUIRU86:$DQGDVWDIIUHSUHVHQWDWLYH$QGUHZ LPSOLFDWLRQVIRUWKHIXWXUHFRQGXFWRIWKHXQLRQjVDIIDLUV 3RZOH\DVVLVWHGKLP3ODLQWLIIVDSSRLQWHGWKHPVHOYHVDQG VHYHQRWKHU/RFDOPHPEHUVWRWKHQHJRWLDWLQJFRPPLWWHHRI 86LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQ /RFDODQGDOVRWRRNSDUWLQWKHQHJRWLDWLRQV7KH\ZHUH RPLWWHG SDLGIRUWKHLUWLPHDQGH[SHQVHV 1HYHUWKHOHVVWKHPDMRULW\GHQLHV3ODLQWLIIVDWWRUQH\IHHV ,Q ODWH sXO\  7LPHW SUHVHQWHG LWV ILQDO FRQWUDFW EHFDXVHmWKHORFDOXQLRQLVQRWEHQHILWWLQJIURPWKHHIIRUWVRI SURSRVDOWR86:$3ODLQWLIIVRSHQO\RSSRVHGWKHSURSRVDO WKHVXFFHVVIXO3ODLQWLIIVLQWKHVDPHZD\DVWKH3ODLQWLIIVDQG DQGWKHXQLRQYRWHGWRUHMHFWLW2QsXO\ VRZRXOGQRWEHXQMXVWO\HQULFKHGDWWKH3ODLQWLIIVjH[SHQVHLI /RFDO  ZHQW RQ VWULNH  7LPHW LVVXHG D :$51 $FW WKH\ GLG QRW HTXDOO\ FRQWULEXWH WR WKH OLWLJDWLRQ H[SHQVHl QRWLFHVWDWLQJWKH&RPSDQ\ZRXOGFORVHPRVWRILWVRSHUDWLRQV 0DMRULW\ DW  7KH PDMRULW\jV UHDVRQLQJ LV VRPHZKDW DWWKHSODQWDQGPRYHWKHPWRDQRWKHUVWDWHXQOHVV/RFDO HOOLSWLFDOEXWDSSHDUVWRUHVWRQWKHSUHPLVHWKDWZKDWHYHU PDGHVXEVWDQWLDOFRQWUDFWFRQFHVVLRQV3ODLQWLIIVFRQWLQXHG EHQHILWWKHORFDOPD\KDYHUHFHLYHGE\3ODLQWLIIVjYLFDULRXV WRRSSRVHWKHFRQFHVVLRQVLQWKHSURSRVDO2Q2FWREHU SURWHFWLRQ RI LWV IUHH VSHHFK ULJKWV LV QRW SURSRUWLRQDO WR %RZHQDQG7LPHWDJUHHGWRHQGWKHVWULNHDQGH[WHQG 3ODLQWLIIVj FRPSHQVDWRU\ DQG SXQLWLYH GDPDJH DZDUG WR WKHFXUUHQW&%$XQWLODWOHDVW0D\ ZKLFK WKH ORFDO FDQ FODLP QR VKDUH 6HH 6KLPPDQ Y ,QWjO 8QLRQRI2SHUDWLQJ(QJjUV/RFDO)G $W 3ODLQWLIIVj UHTXHVW 86:$ DQG 7LPHW UHVWDUWHG WK&LUHQEDQF QHJRWLDWLRQVRQWKH&%$LQ0D\3ODLQWLIIVSDUWLFLSDWHG LQWKRVHQHJRWLDWLRQVDVPHPEHUVRIDFRPPLWWHHFRPSRVHG ,Q6KLPPDQY,QWjO8QLRQRI2SHUDWLQJ(QJjUV/RFDO RI ORFDO XQLRQ PHPEHUV  3ODLQWLIIV VWDWHG LQ WKH PHHWLQJ ZH KHOG WKDW D SODLQWLII ZKR UHFHLYHG RYHU  LQ FRPSHQVDWRU\DQGSXQLWLYHGDPDJHVLQDQ/05'$FDVHPD\ KDYHmUHQGHUHGDVXEVWDQWLDOEHQHILWlWRWKHXQLRQPHPEHUVE\  7KH :$51 $FW SURYLGHV m$Q HPSOR\HU VKDOO QRW RUGHU D SODQW YLQGLFDWLQJIUHHVSHHFKULJKWVEXWGLGQRWUHQGHUDmFRPPRQ FORVLQJ RU PDVV OD\RII XQWLO WKH HQG RI D GD\ SHULRG DIWHU WKH HPSOR\HU EHQHILWlEHFDXVHWKHXQLRQPHPEHUVFRXOGQRWSDUWDNHRIWKH VHUYHV ZULWWHQ QRWLFH RI VXFK DQ RUGHUl  86& †  D  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

EHWZHHQ86:$DQG7LPHWWKDWWKHFXUUHQWSURSRVDOXQGHU BBBBBBBBBBBBBBBB QHJRWLDWLRQE\WKHSDUWLHVGLGQRWPHHWZLWKWKHLUDSSURYDODQG WKH\ZRXOGQRWWDNHLWEDFNWRWKHORFDOPHPEHUVIRUDYRWH ',66(17 6KRUWO\WKHUHDIWHUWDONVEURNHRIIEHWZHHQ86:$DQG7LPHW BBBBBBBBBBBBBBBB $W WKH VDPH WLPH WKH QHJRWLDWLRQV ZHUH WDNLQJ SODFH D 5 *8< &2/( s5 &LUFXLW sXGJH  , FRQFXU ZLWK WKH ILQDQFLDOLQYHVWLJDWLRQRI/RFDOZDVEHLQJFRQGXFWHGE\ PDMRULW\RQHYHU\LVVXHH[FHSWIRULWVGHFLVLRQWRUHYHUVHWKH 86:$DXGLWRUV,Q)HEUXDU\3RZOH\WKH86:$VWDII GLVWULFWFRXUWjVDZDUGRIDWWRUQH\IHHVWRWKH3ODLQWLIIV:LWK PHPEHUZRUNLQJDWWKH/RFDOVDLGKHWKRXJKWVSHQGLQJDWWKH UHVSHFW WR WKDW LVVXH , DJUHH WKDW QR LQMXQFWLYH UHOLHI LV /RFDOIURPWKHWLPH3ODLQWLIIVWRRNRIILFHXSWRWKHSUHVHQW QHFHVVDU\ WR HQWLWOH 3ODLQWLIIV WR WKH mFRPPRQ EHQHILWl PRPHQWZDVRXWRIFRQWURODQGKHFRXOGQRWUHLJQLWLQ+H H[FHSWLRQWRWKH$PHULFDQ5XOH+RZHYHU,GRQRWDJUHH VXJJHVWHG86:$FRQGXFWDQDXGLW/DWHUWKDWVDPHPRQWK ZLWKWKHPDMRULW\jVFRQFOXVLRQWKDWWKHGLVWULFWFRXUWDEXVHGLWV %RZHQUHTXHVWHGDQDXGLWRI/RFDO7KHDXGLWRIWKH GLVFUHWLRQ LQ DZDUGLQJ DWWRUQH\ IHHV  )RU WKDW UHDVRQ , /RFDOZDVFRPSOHWHGLQ0D\DQGUHYHDOHGVXEVWDQWLDO UHVSHFWIXOO\GLVVHQW H[SHQGLWXUHV E\ WKH 3ODLQWLIIV  %RZHQ DQG WKH DXGLWRU UHFRPPHQGHG86:$LPSRVHDWUXVWRQWKH/RFDODQGUHPRYH 7KLV&LUFXLWUHYLHZVDQDZDUGRIDWWRUQH\IHHVIRUDEXVHRI LWVRIILFHUVIURPWKHLUSRVLWLRQV$WUXVWHHVKLSZDVLPSRVHG GLVFUHWLRQ6PRRWY8QLWHG7UDQVS8QLRQ)G RQ sXQH   DQG 3ODLQWLIIV ZHUH UHPRYHG IURP RIILFH WK&LU$GLVWULFWFRXUWDEXVHVLWVGLVFUHWLRQ 7KH\UHFHLYHGDOHWWHUIURP86:$3UHVLGHQW%HFNHUVWDWLQJ LILWUHOLHGXSRQFOHDUO\HUURQHRXVILQGLQJVRIIDFWLPSURSHUO\ DSSOLHG WKH JRYHUQLQJ ODZ RU XVHG DQ HUURQHRXV OHJDO 7RDVVXUHWKHSHUIRUPDQFHRIWKHFROOHFWLYHEDUJDLQLQJ VWDQGDUG  ,G TXRWLQJ 2ZQHU2SHUDWRU ,QGHS 'ULYHUjV DJUHHPHQWVRURWKHUGXWLHVRIDEDUJDLQLQJUHSUHVHQWDWLYH $VVjQ ,QF Y %LVVHOO  )G   WK &LU   \RXDUHKHUHE\QRWLILHGWKDW/RFDO8QLRQLVEHLQJ 8QGHUWKLVVWDQGDUGWKHDSSHOODWHFRXUWUHYLHZVWKHGLVWULFW SODFHG XQGHU D >WUXVWHHVKLS@ DQG DOO WKH RIILFHUV DUH FRXUWjVOHJDOFRQFOXVLRQVGHQRYRDQGLWVIDFWXDOILQGLQJVIRU KHUHE\UHOLHYHGRIWKHLUGXWLHV FOHDUHUURU,G $FFRUGLQJWRWKHOHWWHUDKHDULQJZRXOGEHKHOGODWHUDWZKLFK 2QWKHEDVLVRIKLVWKRURXJKUHYLHZRIWKHUHFRUGDQGWKH WKH\FRXOGDSSHDU7KHOHWWHUGLGQRWPHQWLRQDQ\ILQDQFLDO ODZsXGJH0DUEOH\FRQFOXGHG LUUHJXODULWLHV WKDW 3ODLQWLIIV UHQGHUHG D VXEVWDQWLDO VHUYLFH WR WKHLU 6KRUWO\DIWHU3ODLQWLIIVZHUHUHPRYHGIURPRIILFH86:$ XQLRQ DQG IHOORZ XQLRQ PHPEHUV LQ YLQGLFDWLQJ WKHLU DQG7LPHWUHDFKHGDWHQWDWLYHDJUHHPHQW%RZHQVHQWDOHWWHU 7LWOH , ULJKWVE\FKDOOHQJLQJWKHLUUHPRYDOIURPRIILFH WR/RFDOPHPEHUVXUJLQJUDWLILFDWLRQ3ODLQWLIIVRSSRVHG DQG WKH ODZIXOQHVV RI 'HIHQGDQWj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

VKRXOGKDYHJUDQWHGWKHPVXPPDU\MXGJPHQWRQFRXQWVWZR DQGWKH3ODLQWLIIVZHUHXQDZDUHWKHKHDULQJZRXOGLQYROYH DQGWKUHH$VDJHQHUDOUXOHWKHGHQLDORIVXPPDU\MXGJPHQW ILQDQFLDO PDWWHUV  7KH\ UHTXHVWHG D SRVWSRQHPHQW RI WKH LVQRWUHYLHZDEOHDIWHUDIXOOWULDORQWKHPHULWVsDUUHWWY KHDULQJ ZKLFK ZDV GHQLHG  7KH &RPPLVVLRQ LVVXHG D (SSHUO\   )G   Q  WK &LU  &RPPLVVLRQ 5HSRUW ZKLFK UHFRPPHQGHG FRQWLQXLQJ WKH $FFRUGLQJO\ZHQHHGQRWUHDFK3ODLQWLIIVjFODLP WUXVWHHVKLS86:$FRQGXFWHGWZRDGGLWLRQDOKHDULQJV2Q 1RYHPEHU   DQ $SSHDOV 3DQHO KHOG D KHDULQJ &21&/86,21 DGRSWHG WKH &RPPLVVLRQ 5HSRUW DQG UHFRPPHQGHG WKH ([HFXWLYH %RDUG DGRSW WKH &RPPLVVLRQ UHSRUW  7KH )RU WKH UHDVRQV VWDWHG DERYH ZH $)),50 WKH MXU\ V ([HFXWLYH %RDUG DGRSWHG WKH &RPPLVVLRQ UHSRUW DQG RQ YHUGLFWDQGGDPDJHDZDUGDJDLQVW86:$:H5(9(56( $XJXVWWKH&RQYHQWLRQ$SSHDOV&RPPLWWHHKHOGD WKHGLVWULFWFRXUWjVDZDUGRIDWWRUQH\IHHVDQGUHPDQGWKHFDVH KHDULQJDQGDGRSWHGWKHGHFLVLRQRIWKH([HFXWLYH%RDUG7KH WRWKHGLVWULFWFRXUWZLWKGLUHFWLRQVWRHQWHUDQRUGHUGHQ\LQJ WUXVWHHVKLSZDVPDLQWDLQHGXQWLO0D\WKHWLPHIRUWKH DWWRUQH\ IHHV  ,Q OLJKW RI WKH MXU\jV YHUGLFW LQ IDYRU RI QH[WUHJXODUO\VFKHGXOHGHOHFWLRQIRURIILFHUV 3ODLQWLIIVDIWHUDIXOOWULDORQWKHPHULWVZHGRQRWUHDFKWKHLU FODLPWKDWWKHGLVWULFWFRXUWHUUHGLQGHQ\LQJWKHLUPRWLRQIRU 6XEVHTXHQWWRWKHVHDGPLQLVWUDWLYHSURFHHGLQJV3ODLQWLIIV VXPPDU\MXGJPHQW ILOHG VXLW LQ IHGHUDO FRXUW DJDLQVW 86:$ IRU 3ODLQWLIIVj mXQODZIXOlUHPRYDOIURPWKHLU/RFDORIILFHVDQGLPSRVLWLRQ RI D WUXVWHHVKLS RQ WKH /RFDO  ,Q WKH FRPSODLQW 3ODLQWLIIV DOOHJHG LQWHU DOLD WKUHH GLIIHUHQW FODLPV  &RXQW , VWDWHG 86:$YLRODWHG3ODLQWLIIVjIUHHVSHHFKULJKWVFRQWUDU\WRWKH /DERU 0DQDJHPHQW 5HSRUWLQJ DQG 'LVFORVXUH $FW m/05'$l†D86&†D&RXQW,, DOOHJHG 86:$ LPSRVHG WKH WUXVWHHVKLS IRU DQ LPSURSHU SXUSRVH FRQWUDU\ WR /05'$ †  DQG †   86& †  DQG †   &RXQW ,,, FODLPHG 86:$ EUHDFKHG LWV FRQWUDFW ZLWK 3ODLQWLIIV E\ LPSRVLQJ WKH WUXVWHHVKLS LQ YLRODWLRQRILWVFRQVWLWXWLRQDQGE\ODZVFRQWUDU\WR/05'$ †86&†7KHPDWWHUZHQWWRWULDODQGWKHMXU\ IRXQGIRU3ODLQWLIIV7KHMXU\DZDUGHGHDFK3ODLQWLIILQ FRPSHQVDWRU\GDPDJHVIRUFRXQW,DZDUGHG$UJHQWLQHDQG *RRFK HDFK  DQG :LQJR  LQ SXQLWLYH GDPDJHV IRU FRXQW , DZDUGHG HDFK SODLQWLII  IRU FRPSHQVDWRU\GDPDJHVRQFRXQW,,DQGRQFRXQW,,,DZDUGHG  WR $UJHQWLQH DQG *RRFK DQG  WR :LQJR LQ FRPSHQVDWRU\GDPDJHV $IWHUWKHWULDO86:$PRYHGIRUMXGJPHQWDVDPDWWHURI ODZDQHZWULDORUDUHPLWWLWXURISXQLWLYHGDPDJHV7KHWULDO FRXUWGHQLHG86:$jVPRWLRQ3ODLQWLIIVPRYHGIRUDWWRUQH\  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

IHHVDQGWRDPHQGWKHMXGJPHQWWRLQFOXGHGHFODUDWRU\DQG :HGHFOLQHWRIROORZHLWKHULQWHUSUHWDWLRQRIWKHFRPPRQ LQMXQFWLYH UHOLHI  7KH GLVWULFW FRXUW JUDQWHG WKH DZDUG RI EHQHILWUXOH7KHFHQWUDOLVVXHIRUDFRXUWLQGHWHUPLQLQJWKH DWWRUQH\IHHVEXWGHQLHGWKHRWKHUUHOLHI DSSOLFDELOLW\ RI WKH FRPPRQ EHQHILW WKHRU\ LV ZKHWKHU WKH PHPEHUVRIWKH/RFDOVKDUHGLQWKHEHQHILWRIWKHVXLWLQWKH ',6&866,21 VDPHZD\DVWKHSODLQWLII)RULQVWDQFHLQ6KLPPDQZHGLG QRW DOORZ DQ DZDUG RI DWWRUQH\ IHHV EHFDXVH WKH EHQHILW , 86:$jV&ODLPIRUsXGJPHQWDVD0DWWHURI/DZ REWDLQHGE\WKHXQLRQZDVRQO\DVPDOOSDUWRIWKHEHQHILWV UHFHLYHGE\WKHSODLQWLIIV6KLPPDQ)GDW7R $WWULDO86:$DUJXHGLWLPSRVHGWKHWUXVWHHVKLSWRFRUUHFW DOORZ WKH SODLQWLIIV WR UHFRYHU WKHLU DWWRUQH\ IHHV IURP WKH 3ODLQWLIIVjILQDQFLDOPLVPDQDJHPHQWRI/RFDOZKLFKLV XQLRQ ZRXOG mQRW RSHUDWH WR VSUHDG WKH FRVWV RI OLWLJDWLRQ DSHUPLVVLEOHSXUSRVHXQGHUWKH/05'$2QDSSHDO86:$ SURSRUWLRQDWHO\ DPRQJ WKHVH EHQHILFLDULHV WKH NH\ QRZDUJXHVHYHQLIWKHFRXUWDFFHSWHG3ODLQWLIIVjWKHRU\RIWKH UHTXLUHPHQWRIWKH FRPPRQEHQHILW WKHRU\,G FDVH WKDW WKH\ LPSRVHG WKH WUXVWHHVKLS IRU WKH SXUSRVH RI VLOHQFLQJWKH3ODLQWLIIVVXFKDUHDVRQZRXOGEHODZIXOXQGHU :KHUH D 3ODLQWLII UHFRYHUV RQO\ D VPDOO DPRXQW RI WKH/05'$,WVDUJXPHQWLQWKLVUHJDUGmZKLFKWDNH>V@WKH FRPSHQVDWLRQDQGWKHVXLWSURYLGHVDVXEVWDQWLDOEHQHILWWR MXU\jV ILQGLQJV DW IDFH YDOXHl SUHVHQWV D mSXUHO\ OHJDOl ORFDO XQLRQ PHPEHUV DWWRUQH\ IHHV DUH DSSURSULDWH  6HH TXHVWLRQWKDWLVVXEMHFWWRGHQRYRDSSHOODWHUHYLHZ. 7 0XUSK\  )G DW   ,Q VXFK FDVHV WKH SODLQWLIIV DUH (QWHUSULVHV Y =XULFK ,QV &R  )G   WK &LU VKDULQJWKHEHQHILWVRIWKHVXLWHTXDOO\ZLWKWKHXQLRQDQGVR  WKHXQLRQVKRXOGKDYHWRVKDUHWKHEXUGHQRUFRVWRIWKHVXLW ZLWKWKHSODLQWLII 6HFWLRQRIWKH/05'$VWDWHVRQHRIWKHSXUSRVHVD WUXVWHHVKLSFDQEHLPSRVHGLVIRUmDVVXULQJWKHSHUIRUPDQFH $SSO\LQJWKHFRPPRQEHQHILWWKHRU\WRWKLVFDVHUHTXLUHV RI FROOHFWLYH EDUJDLQLQJ DJUHHPHQWV RU RWKHU GXWLHV RI WKH ZH5(9(56(WKHGLVWULFWFRXUWjVGHFLVLRQWRDZDUGDWWRUQH\ EDUJDLQLQJ UHSUHVHQWDWLYHVl  /05'$ †   86& IHHVWR3ODLQWLIIV$OWKRXJK3ODLQWLIIVYLQGLFDWHGWKHLUIUHH †   86:$ DUJXHV RQH RI WKH GXWLHV RI D EDUJDLQLQJ VSHHFK ULJKWV DQG WKHUHE\ EHQHILWWHG WKH /RFDO DV D ZKROH UHSUHVHQWDWLYH LV WR QHJRWLDWH FROOHFWLYH EDUJDLQLQJ WKH\DOVRUHFHLYHGFRPSHQVDWRU\DQGSXQLWLYHGDPDJHVWKDW DJUHHPHQWV DQG 3ODLQWLIIVj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jH[SHQVHLI 86:$LVFRUUHFWLQLWVDVVHUWLRQWKDWWKHLPSRVLWLRQRID WKH\GLGQRWHTXDOO\FRQWULEXWHWRWKHOLWLJDWLRQH[SHQVH+DOO WUXVWHHVKLSWRSUHYHQWORFDORIILFLDOVIURPGLVUXSWLQJFROOHFWLYH 86DW6&WDW EDUJDLQLQJ LV D OHJLWLPDWH SXUSRVH XQGHU WKH /05'$ &DVFDGH/RFDO/RGJH1RY,QWjO$VVjQRI0DFKLQLVW 9,, 3ODLQWLIIV6XPPDU\sXGJPHQW&ODLP )G   WK &LU  *RUGRQ Y /DERUHUVj ,QWjO 8QLRQ  )G   WK &LU   (YHQ LI WKH (YHQWKRXJK3ODLQWLIIVSUHYDLOHGDWWULDORQDOOWKUHHFRXQWV WUXVWHHVKLSZDVLPSRVHGIRUDSURSHUSXUSRVHKRZHYHUWKLV RIWKHLUFRPSODLQWWKH\DUJXHSULRUWRWULDOWKHGLVWULFWFRXUW  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

mFRPPRQ EHQHILWl WKHRU\ WKDW LV QRW DYDLODEOH WR 3ODLQWLIIV DORQHZRXOGQRWHQWLWOH86:$WRMXGJPHQWDVDPDWWHURIODZ EHFDXVHWKH\RQO\EHQHILWWHGWKHPVHOYHVDQGGLGQRWREWDLQ RQWKLVLVVXH LQMXQFWLYHUHOLHIWKDWEHQHILWWHGRWKHUPHPEHUVRI/RFDO $WUXVWHHVKLSLVSUHVXPHGWREHYDOLGZKHQLWLVLPSRVHGIRU 8QGHUWKHm$PHULFDQ5XOHlFRXUWVGRQRWRUGLQDULO\DZDUG DSXUSRVHDOORZDEOHXQGHUVHFWLRQ,3/LWLVLPSRVHGLQD DWWRUQH\IHHVWRWKHSUHYDLOLQJSDUW\$O\HVND3LSHOLQH6HUY SURFHGXUDOO\ FRUUHFW PDQQHU  /05'$ †   86& &RY:LOGHUQHVV6RFj\866&W †F3DUWLHVFKDOOHQJLQJWKHODZIXOQHVVRIDWUXVWHHVKLS   / (G G    $Q H[FHSWLRQ WR WKLV UXOH WKHUHIRUHFDQVKRZWKHWUXVWHHVKLSZDVEHLQJLPSRVHGIRUDQ RFFXUV LQ /05'$ FDVHV XQGHU D FRPPRQ EHQHILW WKHRU\ XQODZIXO SXUSRVH 47 WKH\ FDQ FKDOOHQJH WKH WUXVWHHVKLS +DOO Y &ROH  86   6 &W   /(GG  EHFDXVHLWZDVQRWLPSRVHGDFFRUGLQJWRSURSHUSURFHGXUHV 7KHUDWLRQDOHEHKLQGWKHWKHRU\LVLIRWKHUPHPEHUV 7HDPVWHU/RFDO8QLRQ1RY&UDQH)G RIWKH/RFDOZRXOGEHQHILWIURPWKHHIIRUWVRIDVXFFHVVIXO WK&LU7KXVDWUXVWHHVKLSFDQEHFKDOOHQJHGE\D SODLQWLIILQWKHVDPHZD\DVWKHSODLQWLIIWKHQWKRVHPHPEHUV SODLQWLIIHYHQLILWZDVLPSRVHGIRUDSURSHUSXUSRVH ZRXOGEHXQMXVWO\HQULFKHGDWWKHSODLQWLIIj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jV IUHH VSHHFK ULJKWV ZHUH WKHUHIRUH SURWHFWHG :RUNHUV$VVjQ)6XSSG6'2KLR 7KHFRXUWDZDUGHGDWWRUQH\IHHVWRWKHSODLQWLIIVXQGHUWKH %HFDXVHWKHWUXVWHHVKLSZDVGHIHFWLYHRQSURFHGXUDOJURXQGV WKHRU\WKHUHVWRIWKH/RFDOVKRXOGKDYHWRVKDUHLQWKHFRVWRI LW ORVW LWV SUHVXPSWLRQ RI YDOLGLW\  2QFH 86:$ ORVW LWV SURWHFWLQJWKHLUIUHHVSHHFKULJKWV,G$ZDUGLQJDWWRUQH\ SUHVXPSWLRQRIYDOLGLW\IRUWKHWUXVWHHVKLS3ODLQWLIIVFRXOG IHHVLQIUHHVSHHFKFDVHVOLNHWKLVmVLPSO\VKLIWVWKHFRVWVRI SURSHUO\DWWDFNWKHUHDVRQVIRUWKHWUXVWHHVKLSDWWULDO7KXV OLWLJDWLRQWRWKHFODVVWKDWKDVEHQHILWWHGIURPWKHPDQGWKDW HYHQ LI VLOHQFLQJ 3ODLQWLIIV ZDV D ODZIXO SXUSRVH 86:$ ZRXOGKDYHKDGWRSD\WKHPKDGLWEURXJKWWKHVXLWl,G ZRXOGQRWEHHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ 86:$FRQWHQGVWKHFRPPRQEHQHILWWKHRU\RQO\DSSOLHV ZKHQVRPHLQMXQFWLYHUHOLHILVDZDUGHGWRWKHXQLRQEHFDXVH RIDSDUW\jVHIIRUWV+DOOZDVLQIDFWVXFKDFDVH7KH\DUJXH ZH KDYH DZDUGHG DWWRUQH\ IHHV XQGHU D FRPPRQ EHQHILW WKHRU\RQO\ZKHQLQMXQFWLYHUHOLHIZDVJLYHQ6KLPPDQY ,QWHUQDWLRQDO8QLRQRI2SHUDWLQJ(QJUV/RFDO)G  WK &LU  SODLQWLIIV GLG QRW UHFHLYH LQMXQFWLYH UHOLHIDQGDWWRUQH\IHHVZHUHQRWDOORZHG%ODFNY5\GHU )GWK&LU0XUSK\Y,82(/RFDO )GWK&LUDWWRUQH\IHHVJUDQWHGDQG SODLQWLIIUHFHLYHGLQMXQFWLYHUHOLHI  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

,, ,QVXIILFLHQF\RI(YLGHQFH &RXUWVWDWHGWKDWSXQLWLYHGDPDJHVPXVWEHDUDmUHDVRQDEOH UHODWLRQVKLSlWRFRPSHQVDWRU\GDPDJHV%0:86DW 86:$ DUJXHV WKH HYLGHQFH SUHVHQWHG WR WKH MXU\ RQ 6&WDW$OWKRXJKWKH%0:&RXUWDSSOLHGD 3ODLQWLIIVjIUHHVSHHFKFODLPVZDVLQVXIILFLHQWDVDPDWWHURI WRUDWLRWKH&RXUWGLGQRWHVWDEOLVKDULJLGPDWKHPDWLFDO ODZ  :H UHYLHZ LQVXIILFLHQF\ FODLPV GH QRYR ZLWKRXW IRUPXOD,QGHHGWKH&RXUWVWDWHGUDWLRVPD\EHKLJKHUZKHUH GHWHUPLQLQJFUHGLELOLW\RUZHLJKLQJHYLGHQFHDQGJLYLQJWKH WKHKDUPLVSDUWLFXODUO\HJUHJLRXVEXWWKHHFRQRPLFKDUPLV SUHYDLOLQJSDUW\WKHEHQHILWRIDOOUHDVRQDEOHLQIHUHQFHV. 7 PLQRURUWKHPRQHWDU\YDOXHRIWKHLQMXU\LVGLIILFXOWWRDVVHVV (QWHUSULVHV,QF)GDW ,G DW   6 &W DW   ,Q WKLV FDVH 3ODLQWLIIVj UHSXWDWLRQV DQG IUHH VSHHFK ULJKWV ZHUH LPSDLUHG  7KHVH 86:$ FRQWHQGV 3ODLQWLIIVj IDFWXDO WKHRU\ RI WKH FDVH LQMXULHVDUHZLWKRXWDUHDG\PRQHWDU\YDOXHDVRSSRVHGWRWKH GHSHQGHG RQ %RZHQjV UROH LQ WKH GHFLVLRQ WR LPSRVH WKH LQMXULHVLQ%0:7KXVZKLOHWKHWRUDWLRLVODUJHUWKDQ WUXVWHHVKLS \HW WKH\ SURGXFHG QR HYLGHQFH RQ WKLV LVVXH WKHWRUDWLRDSSURYHGE\WKH&RXUWLQ%0:ZHFDQQRW 3ODLQWLIIV KRZHYHU GLG SUHVHQW HYLGHQFH RI %RZHQjV VD\LWLVXQUHDVRQDEOH LQYROYHPHQWLQWKHGHFLVLRQWRLPSRVHWKHWUXVWHHVKLS7KH\ SUHVHQWHG HYLGHQFH %RZHQ UHVHQWHG 3ODLQWLIIVj LQWHUIHUHQFH & 6LPLODU&DVHV ZLWKWKH&%$QHJRWLDWLRQV7KH\SUHVHQWHGHYLGHQFH%RZHQ DJUHHG WR D FRQWUDFW ZLWK 7LPHW VRRQ DIWHU 3ODLQWLIIV ZHUH 86:$DUJXHVLQRWKHUFDVHVUDWLRVRIOHVVWKDQWR UHPRYHG IURP WKHLU SRVLWLRQV  7KH\ SUHVHQWHG HYLGHQFH KDYHEHHQVXEMHFWWRDUHPLWWLWXUDQGDFFRUGLQJO\WKHSXQLWLYH %RZHQUHTXHVWHGDQDXGLWRI3ODLQWLIIVZKLFKDFFRUGLQJWR GDPDJHVLQWKLVFDVHVKRXOGEHDVZHOO  6HH5XELQVWHLQY 86:$ZDVWKHXOWLPDWHUHDVRQIRUWKHLUUHPRYDO)LQDOO\ $GPLQLVWUDWRUVRI7XODQH(GXFDWLRQDO)XQG)G DOWKRXJK%HFNHU86:$jVSUHVLGHQWXOWLPDWHO\DSSURYHGWKH  WK &LU  SXQLWLYH GDPDJHV DZDUG WKDW ZDV  WUXVWHHVKLS%RZHQKDGMXVWEHFRPHKLVVSHFLDODVVLVWDQWZKHQ WLPHVJUHDWHUWKDQWKHFRPSHQVDWRU\DZDUGZDVXQUHDVRQDEOH KHPDGHWKHGHFLVLRQ ZKHUHKDUP3ODLQWLIIVXIIHUHGZDVORVVRIDSHUFHQWSD\ UDLVH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 /05'$ SODLQWLII DZDUGHG  GROODUV LQ SXQLWLYHGDPDJHVDQGGROODULQFRPSHQVDWRU\GDPDJHVIRU KLVIUHHVSHHFKFODLP  7KH /05'$ DIIRUGV PHPEHUV RI ODERU RUJDQL]DWLRQV FHUWDLQ IUHH

VSHHFK ULJKWV LQ FRQQHFWLRQ ZLWK WKH EXLVQHVV RI WKH ODERU RUJDQL]DWLRQ $IWHUFRQVLGHULQJWKHWKUHHIDFWRUVSUHVFULEHGLQ%0:ZH m(YHU\ PHPEHU RI DQ\ ODERU RUJDQL]DWLRQ VKDOO KDYH WKH ULJKW WR PHHW DQG GHFOLQHWRH[HUFLVHRXUSRZHUWRRUGHUDUHPLWWLWXULQWKLVFDVH DVVHPEOH IUHHO\ ZLWK RWKHU PHPEHUV DQG WR H[SUHVV DQ\ YLHZV

DUJXPHQWV

RUJDQL]DWLRQ RU

KLV RSLQLRQV

YLHZV DQG

XSRQ WR H[SUHVV

FDQGLGDWHV DW

LQ PHHWLQJV

DQ HOHFWLRQ RI

RI WKH

WKH ODERU

ODERU 9, $WWRUQH\)HHV$ZDUG6KRXOG%H5HYHUVHG 86:$DUJXHV3ODLQWLIIVjDWWRUQH\IHHVDZDUGLQWKLVFDVH RUJDQL]DWLRQ RU XSRQ DQ\ EXVLQHVV SURSHUO\ EHIRUH WKH PHHWLQJ VXEMHFW WR

WKH RUJDQL]DWLRQ V HVWDEOLVKHG DQG UHDVRQDEOH UXOHV SHUWDLQLQJ WR WKH

FRQGXFW RI PHHWLQJVl /05'$ †  D   86& †  D  PXVW EH UHYHUVHG  ,W FRQWHQGV WKH DZDUG LV EDVHG RQ D  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

GHWHUPLQLQJ ZKHWKHU DQ DZDUG LV H[FHVVLYH D FRXUW VKRXOG HYLGHQFH LV VXIILFLHQW WR VKRZ %RZHQ ZDV LQ SDUW FRQVLGHUWKHGHJUHHRIUHSUHKHQVLELOLW\RIWKHFRQGXFW UHVSRQVLEOHIRUWKHLPSRVLWLRQRIWKHWUXVWHHVKLS,G WKHGLVSDULW\EHWZHHQWKHKDUPRUSRWHQWLDOKDUPVXIIHUHGE\ WKH SODLQWLII DQG KLV SXQLWLYH GDPDJH DZDUG DQG  WKH ,,, 3XQLWLYH'DPDJHV GLIIHUHQFH EHWZHHQ WKH SXQLWLYH GDPDJHV DQG WKH FLYLO SHQDOWLHVDXWKRUL]HGRULPSRVHGLQFRPSDUDEOHFDVHV,GDW 86:$QH[WFODLPVWKHIDFWVRIWKLVFDVHGRQRWZDUUDQW 6&WDW SXQLWLYHGDPDJHV:HDOORZSXQLWLYHGDPDJHVIRU/05'$ YLRODWLRQVRQO\XSRQDVKRZLQJRIDGHIHQGDQWjVPDOLFHRU $ 5HSUHKHQVLEOH&RQGXFW UHFNOHVV RU ZDQWRQ LQGLIIHUHQFH WR D SODLQWLIIjV ULJKWV 7KRPSVRQY2IILFH 3URIjO(PSOR\HHV,QWjO8QLRQ)G ,QGHWHUPLQLQJUHSUHKHQVLELOLW\ZHFRQVLGHUDQXPEHURI WK&LU86:$DUJXHVWKLVLVQRWDQ mDJJUDYDWLQJIDFWRUVlLQFOXGLQJZKHWKHUWKHKDUPZDVPRUH HJUHJLRXVFDVHGHVHUYLQJRISXQLWLYHGDPDJHVHYHQDVVXPLQJ WKDQmSXUHO\HFRQRPLFLQQDWXUHlDQGZKHWKHUDGHIHQGDQWjV 3ODLQWLIIVjWKHRU\RIWKHFDVH,WFRQWHQGVWKHLPSRVLWLRQRI DFWLRQV FRQVWLWXWH mWULFNHU\ RU GHFHLWl DV RSSRVHG WR PHUH WKHWUXVWHHVKLSZDVRQO\WRKHOSWKH/RFDOjVPHPEHUVNHHS QHJOLJHQFH%0:86DW6&WDW WKHLUMREV86:$jVPRWLYDWLRQWRZDUGWKH/RFDOKRZHYHU LV LUUHOHYDQW  7KH SURSHU IRFXV RI WKH &RXUWjV LQTXLU\ LV +HUHWKHKDUPZDVPRUHWKDQSXUHO\HFRQRPLFDOLQQDWXUH ZKHWKHU86:$jVLPSRVLWLRQRIDWUXVWHHVKLSZDVDVKRZRI 7KHMXU\DZDUGHGSXQLWLYHGDPDJHVWR3ODLQWLIIVEHFDXVHLW PDOLFHRUZDQWRQLQGLIIHUHQFHWR3ODLQWLIIVjULJKWV FRQFOXGHG86:$YLRODWHG3ODLQWLIIVjIUHHVSHHFKULJKWV 3ODLQWLIIVVXEPLWWHGVHYHUDOSLHFHVRIHYLGHQFHWRWKHMXU\ )URP WKH MXU\jV GHFLVLRQ LW LV FOHDU WKH MXU\ GHWHUPLQHG ZKLFKZRXOGDOORZLWWRFRQFOXGH86:$DFWHGZLWKZDQWRQ 86:$DFWHGGHOLEHUDWHO\86:$GLGQRWFRPSO\ZLWKLWV LQGLIIHUHQFH WR 3ODLQWLIIVj ULJKWV  )LUVW 86:$ UHPRYHG RZQFRQVWLWXWLRQRUE\ODZVZKHQLWLPSRVHGDWUXVWHHVKLSRQ 3ODLQWLIIV IURP WKHLU HOHFWHG SRVLWLRQV VRRQ DIWHU WKH\ /RFDODQGUHPRYHG3ODLQWLIIVIURPRIILFH  ,W GLGQRW VWULGHQWO\FULWLFL]HG86:$jVFRQWUDFWQHJRWLDWLRQV6HFRQG LQIRUP 3ODLQWLIIV RI WKH UHDVRQV IRU WKH LPSRVLWLRQ RI WKH 86:$LPSRVHGWKHWUXVWHHVKLSZLWKRXWDGHTXDWHQRWLFHDQG WUXVWHHVKLSXQWLOWKHGD\RIWKHKHDULQJZKLFKGLGQRWDOORZ WKHQKHOGVHYHUDOKHDULQJVDOORIZKLFKZHUHQRWmIXOODQG WKHPDQRSSRUWXQLW\WRGHIHQGWKHPVHOYHV,WGLGQRWDIIRUG IDLUl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jV GLVDSSURYDORIWKH&%$DVLQWLPHVSDVW7KHMXU\FRXOGKDYH EHKDYLRU LQ WKLV FDVH DPRXQWHG WR PXFK PRUH WKDQ PHUH UHDVRQDEO\FRQFOXGHGIURPWKLVHYLGHQFH86:$DFWHGZLWK QHJOLJHQFHEXWUDWKHUFRXOGEHFKDUDFWHUL]HGDVLQWHQWLRQDO ZDQWRQGLVUHJDUGIRU3ODLQWLIIVjULJKWV GHOLEHUDWHDQGDNLQWRGHFHLW ,9 0RWLRQIRUD1HZ7ULDO % 5DWLR%HWZHHQ+DUPDQG$ZDUG $IWHU WKH MXU\ UHWXUQHG D YHUGLFW IRU 3ODLQWLIIV 86:$ 7KHUDWLREHWZHHQFRPSHQVDWRU\DQGSXQLWLYHGDPDJHVLQ PRYHGIRUDQHZWULDODQGWKHGLVWULFWFRXUWGHQLHGLWVPRWLRQ WKLVFDVHLVWR,Q%0:WKH8QLWHG6WDWHV6XSUHPH 86:$FRQWHQGVLWLVHQWLWOHGWRDQHZWULDOEHFDXVHDMXU\  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

LQVWUXFWLRQmHIIHFWLYHO\lWROGWKHMXU\86:$KDGZURQJIXOO\ 0U3RZOH\QHHGHGJULHYDQFHSHRSOHLQSODFHDVTXLFNO\ LPSRVHGDQGPDLQWDLQHGWKHWUXVWHHVKLSDQGWKHGLVWULFWFRXUW DVSRVVLEOH7KH\DUHUHDOO\WKHPRVWHVVHQWLDOLQWHUIDFH GLGQRWDOORZ86:$WRSUHVHQWHYLGHQFHRQWKDWLVVXHWKH ZLWKWKHFRPSDQ\+HLQIDFWPDGHHIIRUWVWRJHWROGHU GLVWULFW FRXUW GLG QRW SHUPLW 86:$ WR FURVVH[DPLQH D SHRSOHZKRKDGEHHQJULHYDQFHFRPPLWWHHPHQWRGRLW ZLWQHVVZKRZDVDOLJQHGZLWK86:$EXWPDGH86:$FDOO ,WjV D WKDQNOHVV MRE   DQG WKH RQO\ SHRSOH KH FRXOG KLPLQLWVFDVHLQFKLHIDQGWKHGLVWULFWFRXUWH[FOXGHG FRQYLQFHZHUHWKH\RXQJHUSHRSOH VRPHRI86:$jVUHEXWWDOWHVWLPRQ\ s$DW86:$ZDQWHGWKLVHYLGHQFHDGPLWWHGWR 7KH&RXUWUHYLHZVDGLVWULFWFRXUWjVGHQLDORIDPRWLRQIRU VKRZ3RZOH\UHDSSRLQWHGWKHVHPHPEHUVEHFDXVHWKH\ZHUH D QHZ WULDO XQGHU DQ DEXVH RI GLVFUHWLRQ VWDQGDUG  '\QR WKHRQO\RQHVZKRZRXOGWDNHWKHMREDQGKHZDVQRWVLPSO\ &RQVWU &R Y 0F:DQH ,QF  )G   WK &LU LQGLIIHUHQWWR/RFDOjVILQDQFHV7KHGLVWULFWFRXUWH[FOXGHG $QDEXVHRIGLVFUHWLRQRFFXUVZKHQWKLV&RXUWKDVmD WKHVWDWHPHQWDVKHDUVD\ GHILQLWHDQGILUPFRQYLFWLRQWKHWULDOFRXUWFRPPLWWHGDFOHDU HUURULQMXGJPHQWl/RJDQY'D\WRQ+XGVRQ&RUS)G 86:$ DUJXHV HYHQ WKRXJK .LUNSDWULFNjV VWDWHPHQW ZDV WK&LU KHDUVD\WKHVWDWHPHQWVKRXOGKDYHEHHQDGPLVVLEOHXQGHUWKH mVWDWH RI PLQGl H[FHSWLRQ WR WKH KHDUVD\ UXOH DQG LWV $3UHMXGLFLDOsXU\,QVWUXFWLRQ H[FOXVLRQSUHMXGLFHGWKHPEHFDXVHWKH\FRXOGQRWXVHLWWR UHEXWWKHLPSUHVVLRQ3RZOH\ZDVQRWUHDOO\FRQFHUQHGDERXW 86:$DUJXHVRQHRIWKHGLVWULFWFRXUWjVLQVWUXFWLRQVWRWKH WKH/RFDOjVILQDQFHV:HILQGWKLVVWDWHPHQWWREHHTXLYRFDO MXU\ mHIIHFWLYHO\ LQVWUXFWHG WKH MXU\l WKDW 86:$ KDG RQWKLVSRLQW$FFRUGLQJO\ZHGRQRWVHHWKDWWKHH[FOXVLRQ LPSURSHUO\LPSRVHGWKHWUXVWHHVKLS)XUWKHUWKHLQVWUXFWLRQ RI WKLVVWDWHPHQWSUHMXGLFHG86:$HYHQLILWVKRXOGKDYH DVNHGWKHMXU\WRFRQVLGHUHYLGHQFHZKLFKZDVQRWUHOHYDQWWR EHHQ DGPLWWHG XQGHU WKH mVWDWH RI PLQGl H[FHSWLRQ  :H WKHLVVXHVDWWULDO:HUHYLHZMXU\LQVWUXFWLRQVDVDZKROHWR WKHUHIRUHFRQFOXGHLIWKHUHZDVDQ\HUURULWZDVKDUPOHVV GHWHUPLQHLIWKH\DGHTXDWHO\LQIRUPWKHMXU\RIWKHUHOHYDQW FRQVLGHUDWLRQVDQGmSURYLGHDEDVLVLQODZIRUDLGLQJWKHMXU\ 9 5HPLWWLWXU LQUHDFKLQJLWVGHFLVLRQlsRQHVY&RQVROLGDWHG5DLO&RUS )GWK&LU:HZLOOUHYHUVHDMXU\ 7KH MXU\ DZDUGHG 3ODLQWLIIV  LQ FRPSHQVDWRU\ YHUGLFWRQO\LQVLWXDWLRQVZKHUHWKHLQVWUXFWLRQYLHZHGDVD GDPDJHVDQGLQSXQLWLYHGDPDJHV86:$FODLPV ZKROHLVmFRQIXVLQJPLVOHDGLQJDQGSUHMXGLFLDOl%DUQHVY WKLVH[WUHPHGLVSDULW\UHTXLUHVWKH&RXUWWRRUGHUDUHPLWWLWXU 2ZHQV&RUQLQJ)LEHUJODVV&RUS)GWK&LU RIWKHSXQLWLYHGDPDJHDZDUG  $ FRXUW PD\ RUGHU D UHPLWWLWXU LI DQ DZDUG RI SXQLWLYH 7KHLQVWUXFWLRQWRZKLFK86:$REMHFWVSURYLGHG GDPDJHVLVJURVVO\H[FHVVLYH%0:RI1$Y*RUH86   6 &W   / (G G    ,Q ,QGHFLGLQJZKHWKHUWKH86:$LPSRVHGWKHWUXVWHHVKLS LQEDGIDLWK\RXPD\FRQVLGHUDPRQJRWKHUWKLQJV  ZKHWKHUWKHLQWHUQDWLRQDOXQLRQKDVVKRZQE\FOHDU 7KH VWDWH RI PLQG H[FHSWLRQ WR WKH KHDUVD\ UXOH SURYLGHV m$ VWDWHPHQW RI WKH GHFODUDQWjV WKHQ H[LVWLQJ VWDWH RI PLQG   VXFK DV LQWHQW DQG FRQYLQFLQJ HYLGHQFH WKDW WKH FRQWLQXDWLRQ RI WKH SODQ RU PRWLYHl LV QRW H[FOXGHG E\ WKH KHDUVD\ UXOH )HG 5 (YLG   $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

&([FOXVLRQRI5HEXWWDO(YLGHQFH WUXVWHHVKLSIRUPRUHWKDQPRQWKVZDVQHFHVVDU\IRUDQ DOORZDEOHSXUSRVHDQG 86:$ DUJXHV WKH GLVWULFW FRXUW LPSURSHUO\ H[FOXGHG VWDWHPHQWVRIRQHRILWVZLWQHVVHVDVKHDUVD\*HQHUDOO\ZH WKHIDLOXUHRIWKHLQWHUQDWLRQDOXQLRQWRSURYLGHWKH UHYLHZ D GLVWULFW FRXUW V HYLGHQWLDU\ GHFLVLRQV IRU DEXVH RI SURFHGXUDO UHTXLUHPHQWV PDQGDWHG E\ WKDW XQLRQjV GLVFUHWLRQDQGZLOOUHYHUVHRQO\ZKHQZHILQGWKDWVXFKDEXVH &RQVWLWXWLRQDQGE\ODZV RIGLVFUHWLRQKDVFDXVHGPRUHWKDQKDUPOHVVHUURU&RROH\Y &DUPLNH &LQHPDV ,QF  )G  WK &LU  7KHLQVWUXFWLRQGRHVQRWPLVVWDWHWKHODZDQGLVLQDFFRUG 5HFHQWO\ZHKDYHDSSOLHGWKLVVWDQGDUGWRKHDUVD\HYLGHQWLDU\ ZLWK WKH VWDWXWRU\ ODQJXDJH RI WKH /05'$  )XUWKHU WKH UXOLQJVDVZHOO7UHSHOY5RDGZD\([S,QF)G LQVWUXFWLRQLVIDFWXDOO\FRUUHFWEHFDXVHWKHGLVWULFWFRXUWKHOG WK&LU,QRUGHUIRU86:$WRSUHYDLORQWKLV DV D PDWWHU RI ODZ WKH DFWLRQV RI 86:$ LQ LPSRVLQJ DQG FODLPLWPXVWQRWRQO\GHPRQVWUDWHWKHGLVWULFWFRXUWHUUHGLQ FRQWLQXLQJ WKH WUXVWHHVKLS GLG QRW FRPSRUW ZLWK WKH H[FOXGLQJWKHKHDUVD\VWDWHPHQWLWPXVWGHPRQVWUDWHWKHHUURU SURFHGXUDOUHTXLUHPHQWVUHTXLUHGE\WKHXQLRQjVFRQVWLWXWLRQ SUHMXGLFHGLWVFDVH,G DQGE\ODZV 7KH VWDWHPHQW 86:$ GHVLUHG WR DGPLW ZDV PDGH E\ 6WLOO86:$DUJXHVWKHLQVWUXFWLRQmHIIHFWLYHO\lLQVWUXFWHG $QGUHZ3RZOH\3RZOH\ZDVWKHWUXVWHHRIWKH/RFDODIWHUWKH WKHMXU\WKDW86:$KDGZURQJIXOO\LPSRVHGDQGPDLQWDLQHG 3ODLQWLIIVZHUHUHPRYHGIURPRIILFH$VSDUWRIKLVGXWLHVDV WKHWUXVWHHVKLS,WFRQWHQGVWKHGLVWULFWFRXUWUHIXVHGWRDGPLW WUXVWHHKHDSSRLQWHGPHPEHUVRIWKH/RFDOWRVHUYHZLWKKLP HYLGHQFH WKDW ZRXOG VKRZ D UHDVRQ IRU WKH WUXVWHHVKLSjV LQWKHRSHUDWLRQRIWKHWUXVWHHVKLS,Qs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jVILQDQFHV HVWDEOLVKPHQW   DIWHU WKH H[SLUDWLRQ RI WKH HLJKWHHQ PRQWKV WKH 3RZOH\GLHGEHIRUHWULDODQGZDVXQDEOHWRWHVWLI\+RZHYHU WUXVWHHVKLS VKDOO EH SUHVXPHG LQYDOLG LQ DQ\ VXFK SURFHHGLQJ DQG

3RZHO\ KDG WDONHG WR sDPHV .LUNSDWULFN WKH DSSRLQWHG LWV GLVFRQWLQXDQFH VKDOO EH GHFUHHG XQOHVV WKH ODERU RUJDQL]DWLRQ VKDOO VKRZ E\ FOHDU DQG FRQYLQFLQJ SURRI WKDW WKH FRQWLQXDWLRQ SUHVLGHQW RI WKH /RFDO GXULQJ WKH WUXVWHHVKLS DERXW KLV RI WKH WUXVWHHVKLS LV QHFHVVDU\ IRU D SXUSRVH DOORZDEOH XQGHU UHDVRQVIRUUHDSSRLQWLQJWKHWKUHHPHPEHUV7KHVWDWHPHQW VHFWLRQ  RI WKLV WLWOH .LUNSDWULFNPDGHZDV  86&† F  $UJHQWLQHHWDOY8QLWHG 1RV 1RV $UJHQWLQHHWDOY8QLWHG  6WHHOZRUNHUVRI$P 6WHHOZRUNHUVRI$P

86:$LPSRVHGWKHWUXVWHHVKLSIRUXQODZIXOUHDVRQVLQWKH KDG XQODZIXOO\ LPSRVHG WKH WUXVWHHVKLS DQG ZDV QRW ILUVWSODFH SUHMXGLFLDO 86:$jVHYLGHQFHRQFRQWLQXDWLRQRIWKHWUXVWHHVKLSWKDW %86:$jV5LJKWWR&URVV([DPLQH.LQJ ZDV H[FOXGHG ZDV  86:$jV &RPPLVVLRQ 5HSRUW WKDW UHFRPPHQGHG FRQWLQXDWLRQ RI WKH WUXVWHHVKLS DQG IXUWKHU 86:$FODLPVWKHGLVWULFWFRXUWLPSURSHUO\GHQLHGLWWKH DXGLWVDOHWWHURIsDQXDU\WKDWVWDWHG86:$jV ULJKWRIFURVVH[DPLQDWLRQRIRQHRILWVZLWQHVVHV5RQ.LQJ ([HFXWLYH %RDUG $SSHDO 3DQHO DGRSWHG WKH &RPPLVVLRQ DQDXGLWRU IRU86:$ZDVFDOOHGE\WKH3ODLQWLIIVLQWKHLU 5HSRUWWKHUHVXOWVRIIXUWKHUDXGLWVDQGDWUDQVFULSWRI FDVH LQ FKLHI  7KH GLVWULFW MXGJH GLG QRW DOORZ 86:$ WR WKH $XJXVW   KHDULQJ EHIRUH D 86:$ &RQYHQWLRQ FURVVH[DPLQH .LQJ DIWHU 3ODLQWLIIVj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 UHOHYDQWWRWKHFHQWUDOLVVXHDWWULDOWKHGLVWULFWFRXUWPDGHWKLV $ FRXUW PXVW SHUPLW D SDUW\ WR VXEVWDQWLDOO\ DQG IDLUO\ HYLGHQFH UHOHYDQW E\ LWV MXU\ LQVWUXFWLRQ  $V PHQWLRQHG H[HUFLVH LWV ULJKW WR FURVVH[DPLQDWLRQ  )UDQFLV Y &ODUN DERYHKRZHYHUWKHGLVWULFWFRXUWDOVRIRXQGVXFKHYLGHQFHWR (TXLS&R)GWK&LU+RZHYHU EHSUHMXGLFLDO$GPLWWLQJRUH[FOXGLQJUHOHYDQWHYLGHQFHWKDW m>VRPHWLPHV@FURVVH[DPLQDWLRQLVFURVVH[DPLQDWLRQLQIRUP LV SUHMXGLFLDO RU FRQIXVLQJ LV ZLWKLQ WKH GLVWULFW FRXUWjV RQO\DQGQRWLQIDFWDVIRUH[DPSOHWKHµFURVVH[DPLQDWLRQj GLVFUHWLRQ&ODUNVYLOOH0RQWJRPHU\&RXQW\6FKRRO6\VWHPY RI D SDUW\ E\ KLV RZQ FRXQVHO DIWHU EHLQJ FDOOHG E\ WKH 8QLWHG6WDWHV*\SVXP&R)GWK&LU RSSRQHQWl)HG5(YLG$GYLVRU\&RPPLWWHH1RWHV 7KHGLVWULFWFRXUWGHWHUPLQHG.LQJZDVDSDUW\ZKHUHFURVV )XUWKHUH[FOXVLRQRIUHOHYDQWHYLGHQFHLVKDUPOHVVLIRWKHU H[DPLQDWLRQ ZRXOG RQO\ EH LQ IRUP DQG QRW LQ IDFW VXEVWDQWLDOO\HTXLYDOHQWHYLGHQFHLVDGPLWWHG,QUH$LU&UDVK $FFRUGLQJO\WKHGLVWULFWFRXUWGHFLGHGWRUHTXLUH86:$WR 'LVDVWHU  )G   WK &LU   $OO RI WKH H[DPLQH.LQJLQLWVFDVHLQFKLHIDVRSSRVHGWRGXULQJWKH HYLGHQFHH[FOXGHGRQWKHFRQWLQXDWLRQLVVXHVKRZHG86:$ 3ODLQWLIIVjFDVH LPSRVHG DQG PDLQWDLQHG WKH WUXVWHHVKLS EHFDXVH RI WKH 3ODLQWLIIVjILQDQFLDOGHFLVLRQV86:$SURYLGHGVXEVWDQWLDOO\ 7KH)HGHUDO5XOHVRI(YLGHQFHJLYHGLVFUHWLRQWRWKHWULDO HTXLYDOHQW HYLGHQFH WKLV ZDV LWV UHDVRQ IRU LPSRVLQJ WKH MXGJHDVWRWKHRUGHUZLWQHVVHVDUHFDOOHG)HG5(YLG WUXVWHHVKLS GXULQJ WKH WULDO  ,QGHHG ZKHQ 86:$ WULHG WR D  )XUWKHU D WULDO FRXUWjV FRQWURO RYHU WKH RUGHU RI WKH SURFXUHDGPLVVLRQRIWKLVHYLGHQFHDVHFRQGWLPHWKHGLVWULFW HYLGHQFHZLOOQRWEHGLVWXUEHGDEVHQWDQDEXVHRIGLVFUHWLRQ FRXUW GHQLHG LWV UHTXHVW EHFDXVH LQ SDUW WKH FRXUW IHOW WKH *HGHUV Y 8QLWHG 6WDWHV  86    6 &W  HYLGHQFHZDVFXPXODWLYH7KHH[FOXVLRQRIWKLVHYLGHQFHGLG /(GG:HFDQQRWFRQFOXGHLWZDVDQ QRWSUHMXGLFH86:$jVFDVHRQWKHFRQWLQXDWLRQLVVXH7KXV DEXVH RI GLVFUHWLRQ IRU WKH GLVWULFW FRXUW WR UHTXLUH .LQJjV WKHLQVWUXFWLRQGLGQRWmHIIHFWLYHO\lLQVWUXFWWKHMXU\86:$ H[DPLQDWLRQLQ86:$jVFDVHLQFKLHI