Carballo v. Luttrell

Opinion

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

5(<1(52 $57($*$ ; &$5%$//2  3HWLWLRQHU$SSHOODQW   1R  Y !   0$5. /8775(//:DUGHQ  ,00,*5$7,21 $1'  1$785$/,=$7,21 6(59,&(  5HVSRQGHQWV$SSHOOHHV   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV 1RnsXOLD6*LEERQV'LVWULFWsXGJH 6XEPLWWHG0DUFK 'HFLGHGDQG)LOHG2FWREHU %HIRUH.583$16.<%2**6DQG%$7&+(/'(5 &LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ 21%5,()0DUN&:DOWHUV/RUHWR6*HLVVH81,7(' 67$7(6 '(3$570(17 2) s867,&( 2)),&( 2) ,00,*5$7,21 /,7,*$7,21 &,9,/ ',9,6,21

  &DUEDOORY/XWWUHOOHWDO 1R

:DVKLQJWRQ'&IRU$SSHOOHHV5H\QHUR$UWHDJD&DUEDOOR 3KRHQL[$UL]RQDSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB $/,&( 0 %$7&+(/'(5 &LUFXLW sXGJH  3HWLWLRQHU 5H\QHUR $UWHDJD &DUEDOOR D &XEDQ FLWL]HQ DQG QDWLRQDO SUHVHQWO\GHWDLQHGDWWKH)HGHUDO&RUUHFWLRQDO,QVWLWXWLRQDW 0HPSKLVZKRPWKH,PPLJUDWLRQDQG1DWXUDOL]DWLRQ6HUYLFH m,16lDGMXGJHGH[FOXGDEOHILOHGDSURVHSHWLWLRQIRUDZULW RI KDEHDV FRUSXV XQGHU  86& †   3HWLWLRQHU FKDOOHQJHVWKH$WWRUQH\*HQHUDOj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jVFODLPV7KLVWLPHO\DSSHDOIROORZHG:HZLOO DIILUPWKHMXGJPHQWRIWKHGLVWULFWFRXUWEXWIRUVXEVWDQWLDOO\ GLIIHUHQWUHDVRQV ,6WDWHPHQWRI)DFWV $7KH0DULHO%RDWOLIW &DUEDOORFDPHWRWKH8QLWHG6WDWHVDVRQHRIWKHPRUHWKDQ XQGRFXPHQWHG&XEDQQDWLRQDOVZKRDUULYHGGXULQJ WKH m)UHHGRP )ORWLOODl RULJLQDWLQJ DW WKH &XEDQ KDUERU RI 0DULHO  ,Q HDUO\ $SULO  DSSUR[LPDWHO\  &XEDQ FLWL]HQV FODLPHG VWDWXV DV SROLWLFDO UHIXJHHV DQG VRXJKW VDQFWXDU\LQWKH3HUXYLDQHPEDVV\LQ+DYDQD8QLWHG6WDWHV Y)UDGH)GWK&LU2Q$SULO  3UHVLGHQW &DUWHU GHFODUHG WKDW XS WR  RI WKRVH UHIXJHHVZRXOGEHDGPLWWHGWRWKH8QLWHG6WDWHVSXUVXDQWWR 1R &DUEDOORY/XWWUHOOHWDO 

WKH5HIXJHH$FWRIDQGDOORFDWHGPLOOLRQIRUWKHLU UHVHWWOHPHQW  ,G FLWLQJ  )HG 5HJ  $SU     :LWKLQ WKUHH GD\V RI WKLV DQQRXQFHPHQW &DVWUR KDOWHGIOLJKWVWRWKH8QLWHG6WDWHVDQGGHFODUHGWKDWDQ\RQH ZLVKLQJWROHDYHWKHLVODQGFRXOGGRVRWKURXJKWKHKDUERURI 0DULHO,G7KHH[RGXVRIPRUHWKDQ&XEDQVZKR FURVVHG WKH QLQHW\ PLOHV RI RFHDQ EHWZHHQ &XED DQG WKH 8QLWHG 6WDWHV LQ QHDUO\  ERDWV IROORZHG  $ORQVR 0DUWLQH]Y0HLVVQHU)G'&&LU 0RVW RI WKH 0DULHO &XEDQV DUULYHG ZLWKRXW YLVDV RU GRFXPHQWVDOORZLQJWKHPOHJDOHQWU\LQWRWKH8QLWHG6WDWHV )HUQDQGH]5RTXH Y 6PLWK  )G   WK &LU   ,PPLJUDWLRQ RIILFLDOV GHWDLQHG WKHVH DOLHQV DW WKH ERUGHUDQGGHFLGHGWRH[FOXGHWKHPIURPWKH8QLWHG6WDWHV $ERXW  RI WKH DUULYLQJ DOLHQV FRQIHVVHG WR VRPH FULPLQDOKLVWRU\LQ&XEDDQGLPPLJUDWLRQRIILFLDOVGHHPHG URXJKO\RIWKHPWRKDYHEDFNJURXQGVVHULRXVHQRXJKWR ZDUUDQWFRQWLQXHGGHWHQWLRQ3DOPDY9HUGH\HQ)G WK&LU7KH$WWRUQH\*HQHUDOSDUROHGWKH UHPDLQGHU LQWR WKH 8QLWHG 6WDWHV SXUVXDQW WR KLV EURDG GLVFUHWLRQXQGHU86&†G  $7KRXJKQRORQJHU GHWDLQHGWKH&XEDQVUHWDLQHGWKHLUOHJDOVWDWXVDVH[FOXGHG DOLHQVVXEMHFWWRGHSRUWDWLRQ)HUQDQGH]5RTXH)GDW %\WKHVXPPHURI&XEDQDOLHQVKDGEHHQ SDUROHG3DOPD)GDWQ 'HVSLWH &XEDjV LQLWLDO UHIXVDO WR DFFHSW WKH UHWXUQ RI WKH 0DULHO UHIXJHHV )HUQDQGH]5RTXH   )G DW  WKH 8QLWHG 6WDWHV KDV FRQVLVWHQWO\ WDNHQ WKH SRVLWLRQ WKDW

 ,PPLJUDWLRQ ODZ GUDZV D IXQGDPHQWDO GLVWLQFWLRQ EHWZHHQ H[FOXGDEOH DOLHQV WKRVH ZKR VHHN DGPLVVLRQ EXW KDYH QRW EHHQ JUDQWHG HQWU\ WR WKH 8QLWHG 6WDWHV DQG DUH FRQVLGHUHG GHWDLQHG DW WKH ERUGHU DV D PDWWHU RI ODZ DQG GHSRUWDEOH DOLHQV WKRVH ZKR KDYH JDLQHG HQWU\ WR WKH

 86   Q  6LQFH HQDFWPHQW RI WKH ,OOHJDO 8QLWHG 6WDWHV ZKHWKHU OHJDOO\ RU LOOHJDOO\ 6DOH Y +DLWLDQ &WUV &RXQFLO

,PPLJUDWLRQ 5HIRUP DQG ,PPLJUDQW 5HVSRQVLELOLW\ $FW RI  3XE / ,QF

1R   6WDW  m,,5,5$l mH[FOXGDEOHl DOLHQV DUH QRZ GHQRPLQDWHG mLQDGPLVVLEOHl DQG D SURFHVV RI mUHPRYDOl KDV UHSODFHG mGHSRUWDWLRQl  86& ††  D  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

LQWHUQDWLRQDOODZREOLJDWHV&XEDWRDFFHSWLWVQDWLRQDOVGHQLHG REVWDFOH WR WKH SRWHQWLDOO\ LQGHILQLWH GHWHQWLRQ RI DQ DGPLVVLRQ WR WKH 8QLWHG 6WDWHV  *LVEHUW Y 8QLWHG 6WDWHV H[FOXGDEOHDOLHQ $WWRUQH\*HQ)GQWK&LU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mHQGVRI 0LUY6PLWK865HKQTXLVW&LUFXLW MXVWLFHlFRPSRQHQWRIWKHVWDQGDUG6LQFHWKH8QLWHG6WDWHV sXVWLFH  7KLV OLVW FRPSULVHV LQGLYLGXDOV ZKRP WKH ,16 'LVWULFW&RXUWIRUWKH1RUWKHUQ'LVWULFWRI7H[DVSUHYLRXVO\ LGHQWLILHG DV SRVVHVVLQJ VHULRXV FULPLQDO EDFNJURXQGV RU UHMHFWHGRQWKHPHULWVDSHWLWLRQDVVHUWLQJWKHVDPHJURXQGV PHQWDOLQILUPLWLHVDQGGRHVQRWLQWKHHVWLPDWLRQRIWKH6WDWH IRU UHOLHI WKH 6DQGHUV VWDQGDUG DFFRUGV WKDW SHWLWLRQ 'HSDUWPHQWFRQVWLWXWHDGHILQLWLYHRUILQDOJURXSVHOHFWHGIRU SUHFOXVLYHZHLJKW6DQGHUV86DW/RQEHUJHU UHSDWULDWLRQ$OYDUH]0HQGH]Y6WRFN)6XSS )GDW &'&DODIIjG)GWK&LU &XEDVXVSHQGHGWKHDJUHHPHQWLQ0D\EXWDJUHHGDWWKH 9&RQFOXVLRQ HQGRIWRUHLQVWDWHLW*LVEHUW)GDWQ,Q  DQG  WKH 8QLWHG 6WDWHV FRQFOXGHG DGGLWLRQDO :KHWKHU ZH DSSO\ WKH VWDQGDUG RI 6DQGHUV RU WKH DJUHHPHQWV RQ PLJUDWLRQ PDWWHUV ZLWK &XED DQG WKH WZR JDWHNHHSLQJ SURYLVLRQV RI WKH $('3$ 3HWLWLRQHUj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†7KLVSURFHVVLQFOXGHVH[DPLQDWLRQRIHDFK DOLHQjVUHFRUGVDQGDQLQWHUYLHZE\VSHFLDOUHYLHZSDQHOV,G †G %HIRUHUHFRPPHQGLQJLPPLJUDWLRQSDUROHD UHYLHZSDQHOPXVWFRQFOXGHEDVHGRQFRQVLGHUDWLRQRIWKH DOLHQjVUHFRUGRIFULPLQDOEHKDYLRULQVWLWXWLRQDOGLVFLSOLQDU\ UHFRUGPHQWDOKHDOWKKLVWRU\DQGWLHVWRWKH8QLWHG6WDWHV  :H QRWH WKDW sXVWLFH .HQQHG\ ILOHG D GLVVHQW LQ =DGY\GDV LQ ZKLFK

WKDW D GHWDLQHH LV   QRQYLROHQW  OLNHO\ WR UHPDLQ KH VXJJHVWHG WKDW RXU GHFLVLRQ LQ 5RVDOHV*DUFLD ZKLFK KH GHHPHG WR

QRQYLROHQW  XQOLNHO\ WR SRVH D WKUHDW WR WKH FRPPXQLW\ HPSOR\ UHDVRQLQJ mUHPDUNDEO\ VLPLODU WR WKH PDMRULW\jVl mZRXOG VHHP D QHFHVVDU\ FRQVHTXHQFHl RI WKH PDMRULW\jV RSLQLRQ  6 &W DW  XSRQUHOHDVHDQGQRWOLNHO\WRYLRODWHDQ\FRQGLWLRQVRI .HQQHG\ s GLVVHQWLQJ ,Q OLJKW RI WKH DIILUPDWLRQ RI 0H]HL DQG WKH SDUROH,G†G  7KHUHYLHZSDQHOVPDNH &RXUWjV H[SUHVV GLVDYRZDO LQ =DGY\GDV WKDW LWV DQDO\VLV LQ DQ\ ZD\ UHFRPPHQGDWLRQVWRWKH,16jV$VVRFLDWH&RPPLVVLRQHUIRU DSSOLHG WR H[FOXGDEOH DOLHQV ZH UHVSHFWIXOO\ GLVDJUHH ZLWK sXVWLFH .HQQHG\jV VXJJHVWLRQ  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

3XWDQRWKHUZD\WKH&RXUWLQ=DGY\GDVGHFOLQHGWRH[WHQG (QIRUFHPHQW m$VVRFLDWH &RPPLVVLRQHUl ZKR H[HUFLVHV WKH DQDO\VLV RI 0H]HL ZKLFK FRQFHUQHG WKH LQGHILQLWH DXWKRULW\WRJUDQWLPPLJUDWLRQSDUROHLQKLVGLVFUHWLRQ,G GHWHQWLRQRIDQH[FOXGDEOHDOLHQWRDOLHQVZKRKDYHDOUHDG\ †E G  LLL DWWDLQHG HQWU\ LQWR WKH 8QLWHG 6WDWHV  )RU WKLV UHDVRQ WKH =DGY\GDV &RXUW UHFRJQL]HG WKDW 0H]HL HPERGLHV mD EDVLF &XEDjVUHLQVWDWHPHQWRIWKHDJUHHPHQWLQDQG WHUULWRULDO GLVWLQFWLRQl WKDW SUHFOXGHG WKH JRYHUQPHQW IURP WKH VXEVHTXHQW UHVXPSWLRQ RI UHSDWULDWLRQV VSDUNHG ULRWV UHO\LQJRQWKHFDVHZKHQGHIHQGLQJWKHFRQVWLWXWLRQDOLW\RIWKH DPRQJGHWDLQHG0DULHO&XEDQVUHVXOWLQJLQDWOHDVWRQHGHDWK LQGHILQLWHGHWHQWLRQRIUHVLGHQWDOLHQV,GDW%HFDXVH DQG GDPDJHV H[FHHGLQJ  PLOOLRQ  3DGURQ%DH] Y WKH &RXUW FRQFOXGHG WKDW WKH VWDWXV RI DQ DOLHQ GRHV KDYH :DUGHQ)&,)DLUWRQ1R:/DW  FRQVWLWXWLRQDOVLJQLILFDQFHLWGHFOLQHGWRHQWHUWDLQDUJXPHQWV '1ssXO\$VDUHVXOWRQ'HFHPEHU WKDWVXEVHTXHQWGHYHORSPHQWVLQWKHODZKDGXQGHUPLQHGWKH WKH$WWRUQH\*HQHUDODXWKRUL]HGDVLQJOHDGGLWLRQDOUHYLHZRI DXWKRULW\RI0H]HL,G VXLWDELOLW\ IRU LPPLJUDWLRQ SDUROH E\ DQ LQGHSHQGHQW SDQHO ZLWKLQWKH'HSDUWPHQWRIsXVWLFHIRU0DULHO&XEDQVGHWDLQHG $SSOLFDWLRQRIWKH6DQGHUV6WDQGDUG &)5†UHPRYHGIURPWKH&RGHRI)HGHUDO 5HJXODWLRQVE\([HF2UGHU1R)HG5HJ )URP WKH 6XSUHPH &RXUWjV GLVFXVVLRQ LQ 0H]HL RI WKH 'HF     3UHVHQWO\ WKH 8QLWHG 6WDWHV KROGV FRQVWLWXWLRQDOSULQFLSOHVLPSOLFDWHGE\LQGHILQLWHGHWHQWLRQRI DSSUR[LPDWHO\0DULHO&XEDQVLQGHWHQWLRQ&KL7KRQ DOLHQV WZR WKLQJV DUH FOHDU  )LUVW WKH &RXUW UHJDUGV WKH 1JRY,16)GG&LU GLVWLQFWLRQ EHWZHHQ H[FOXGDEOH DQG GHSRUWDEOH DOLHQV LQ LPPLJUDWLRQODZDVKDYLQJFRQVWLWXWLRQDOVLJQLILFDQFH,GDW %3HWLWLRQHUjV&ULPLQDO+LVWRU\   0RUHRYHU IURP D FRQVWLWXWLRQDO SHUVSHFWLYH HYHU\WKLQJ WXUQV RQ WKLV GLVWLQFWLRQ EHFDXVH RQFH DQ DOLHQ $V IDU DV VWDWH DQG IHGHUDO DXWKRULWLHV KDYH EHHQ DEOH WR HQWHUVWKH8QLWHG6WDWHVmWKHOHJDOFLUFXPVWDQFHFKDQJHVIRU DVFHUWDLQ &DUEDOORjV FULPLQDO UHFRUG LQ &XED FRQVLVWV RI WKH'XH3URFHVV&ODXVHDSSOLHV>@l,GDW2QWKLVSRLQW DVL[PRQWKSULVRQWHUPLQIRUEHLQJDsHKRYDKjV WKH &RXUWjV RSLQLRQ LQ =DGY\GDV LV IXQGDPHQWDOO\ DW RGGV :LWQHVVDWKUHHPRQWKSHULRGRIGHWHQWLRQIRUGHVHUWLRQ ZLWK WKLV FRXUWjV GHFLVLRQ LQ 5RVDOHV*DUFLD ZKLFK IURPWKHDUP\LQDQGKLVDWWHPSWWRHQWHUWKH HPSKDVL]HG WKDW mDOLHQVnHYHQ H[FOXGDEOH DOLHQVnDUH 3HUXYLDQHPEDVV\7KH&DVWURJRYHUQPHQWLVVXHG&DUEDOOR µSHUVRQVjHQWLWOHGWRWKH&RQVWLWXWLRQjVPRVWEDVLFSURWHFWLRQV H[LWGRFXPHQWVDQGKHDUULYHGLQ)ORULGDZLWKWKHZDYHRI DQG VWULFWXUHVl DQG ZKLFK mHPSKDWLFDOO\ UHMHFW>HG@ WKH 0DULHOUHIXJHHVRQ0D\$IWHUDEULHIGHWHQWLRQWKH JRYHUQPHQWjVSUHPLVHWKDWH[FOXGDEOHDOLHQVDUHFRPSOHWHO\ ,16SODFHG&DUEDOORRQLPPLJUDWLRQSDUROH IRUHLJQWRWKH)LIWK$PHQGPHQWRIWKH&RQVWLWXWLRQl )G DW   6HFRQG 0H]HL UHPDLQV JRRG ODZ DQG LWV $OPRVWLPPHGLDWHO\XSRQKLVUHOHDVHLQWRWKH8QLWHG6WDWHV SULQFLSOHVFRQWLQXHWRJRYHUQWKHFRQVWLWXWLRQDODQDO\VLVRIWKH &DUEDOORGHYHORSHGDFULPLQDOUHFRUG+LVILUVWDUUHVWFDPHRQ LQGHILQLWHGHWHQWLRQRIH[FOXGDEOHDOLHQV=DGY\GDV6 $XJXVWLQ'DGH&RXQW\)ORULGDIRUJUDQGODUFHQ\ &WDW7KLVFRQFOXVLRQDOVRFRQIOLFWVZLWKWKH FDUU\LQJ D FRQFHDOHG ZHDSRQ DQG FDUU\LQJ DQ XQOLFHQVHG SRVLWLRQWKLVFRXUWWRRNLQ5RVDOHV*DUFLDOLPLWLQJ0H]HLWR ILUHDUP$OWKRXJKWKHVHFKDUJHVZHUHGLVPLVVHG&DUEDOORjV LWVIDFWV)GDW)RUWKHVHUHDVRQVZHFRQFOXGH FULPLQDOUHFRUGFRQWLQXHGWRJURZFRPSULVLQJDWOHDVWVL[WHHQ WKDWRXUSULRUGHFLVLRQLQ5RVDOHV*DUFLDFDQQRWVXUYLYHWKH 6XSUHPH &RXUWjV GHFLVLRQ LQ =DGY\GDV DQG WKDW XQGHU WKH  DQDO\VLVRI0H]HLWKH)LIWK$PHQGPHQWGRHVQRWSUHVHQWDQ 6RPH HYLGHQFH LQ WKH UHFRUG LQGLFDWHV WKDW &DUEDOOR DGRSWHG WKLV IDLWK WR DLG KLV DYRLGDQFH RI PLOLWDU\ VHUYLFH LQ &XED  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

DUUHVWVE\HDUO\IRUFULPHVVXFKDVDJJUDYDWHGDVVDXOW ,GDWHPSKDVLVDGGHG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jV LPSULVRQPHQW WKH ,16 FRQGXFWHG DQ FDVHn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mWUHDWHGlIRUFRQVWLWXWLRQDOSXUSRVHVmDVLIVWRSSHGDW KDYLQJEHHQFRQYLFWHGRIDFULPHRIPRUDOWXUSLWXGHDQGRI WKHERUGHUl>0H]HL86@DW$QGWKDW WZR RU PRUH RIIHQVHV FDUU\LQJ DQ DJJUHJDWH VHQWHQFH RI PDGHDOOWKHGLIIHUHQFH LPSULVRQPHQWH[FHHGLQJILYH\HDUV&DUEDOORGLGQRWDSSHDO WKLVGHFLVLRQ6LQFHKLVUHOHDVHIURPVWDWHFXVWRG\WKH,16 ,G DW   7XUQLQJ WR WKH IXQGDPHQWDO GLIIHUHQFH LQ KDVGHWDLQHG&DUEDOOR LPPLJUDWLRQODZEHWZHHQH[FOXGDEOHDQGGHSRUWDEOHDOLHQV WKH&RXUWUHFRJQL]HGWKDWWKLVGLVWLQFWLRQKDVFRQVWLWXWLRQDO :KLOHLQIHGHUDOFXVWRG\&DUEDOORKDVGHYHORSHGDVL]DEOH VLJQLILFDQFHm,WLVZHOOHVWDEOLVKHGWKDWFHUWDLQFRQVWLWXWLRQDO GLVFLSOLQDU\ UHFRUG  ,QFLGHQW UHSRUWV VKRZ WKDW KH KDV SURWHFWLRQVDYDLODEOHWRSHUVRQVLQVLGHWKH8QLWHG6WDWHVDUH FRPPLWWHGDVVDXOWWKUHDWHQHGERGLO\KDUPWRDVWDIIPHPEHU XQDYDLODEOHWRDOLHQVRXWVLGHRIRXUJHRJUDSKLFERUGHUVl,G WUHVSDVVHGLQDQXQDXWKRUL]HGDUHDDQGSRVVHVVHGPDULMXDQD FLWLQJ8QLWHG6WDWHVY9HUGXJR8UTXLGH]86  DQG sRKQVRQ Y (LVHQWUDJHU  86   3XUVXDQWWRWKHUHJXODWLRQVJRYHUQLQJ0DULHO&XEDQVWKH  )XUWKHUPRUHmRQFHDQDOLHQHQWHUVWKHFRXQWU\WKH ,16KDVUHYLHZHG&DUEDOORjVFDVHDSSUR[LPDWHO\DQQXDOO\WR OHJDO FLUFXPVWDQFH FKDQJHV IRU WKH 'XH 3URFHVV FODXVH GHWHUPLQH KLV VXLWDELOLW\ IRU LPPLJUDWLRQ SDUROH LQWR WKH DSSOLHVWR DOO µSHUVRQVjZLWKLQWKH8QLWHG6WDWHVLQFOXGLQJ 8QLWHG 6WDWHV  2Q HDFK RFFDVLRQ WKH UHYLHZLQJ SDQHO DOLHQVl,GDWFLWDWLRQVRPLWWHG6LQFHWKHODZ UHFRPPHQGHG DJDLQVW SDUROH GXH WR &DUEDOORjV OHQJWK\ UHJDUGVH[FOXGDEOHDOLHQVDVVWDQGLQJRXWVLGHRXUERUGHUVWKH FULPLQDOUHFRUGRQJRLQJGLVFLSOLQDU\SUREOHPVKLVDSSDUHQW )LIWK$PHQGPHQWFDQRIIHUWKHPQRSURWHFWLRQV GLVUHJDUG IRU KLV FULPLQDO KLVWRU\ DQG KLV PLQLPDO SDUWLFLSDWLRQLQYDULRXVSURJUDPVLQSULVRQ$FFRUGLQJO\WKH $VVRFLDWH &RPPLVVLRQHU RI WKH ,16 KDV WR GDWH GHQLHG  &DUEDOOR SDUROH  1HLWKHU 3HWLWLRQHU QRU WKH JRYHUQPHQW :H GR QRW RI FRXUVH PHDQ WR LPSO\ WKDW WKH 8QLWHG 6WDWHV KDV EHOLHYHV WKDW &DUEDOORjV QDPH DSSHDUV RQ WKH  OLVW RI OLFHQVH WR WRUWXUH RU VXPPDULO\ H[HFXWH H[FOXGDEOH DOLHQV 6HH HJ

0DULHO&XEDQVZKRP&XEDDJUHHGWRUHSDWULDWHEXWEHFDXVH =DGY\GDV  6 &W DW  6FDOLD s GLVVHQWLQJ FRQFOXGLQJ WKDW ZKLOH H[FOXGDEOH DOLHQV FDQQRW EH WRUWXUHG RU VXEMHFWHG WR KDUG ODERU WKDW GRFXPHQW UHPDLQV FODVVLILHG &HQWHU IRU 1DWjO 6HF ZLWKRXW D MXGLFLDO WULDO mQHLWKHU SURKLELWLRQ KDV DQ\WKLQJ WR GR ZLWK WKHLU 6WXGLHVY'HSDUWPHQWRI6WDWH1R:/ ULJKW WR EH UHOHDVHG LQWR WKH 8QLWHG 6WDWHVl DFFRUG /\QFK Y &DQQDWHOOD  )G  WK &LU  DQG 5RGULJXH])HUQDQGH]  )G   &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

,GDW,QVKRUW5RVDOHV*DUFLDUHVWVXSRQWZRFULWLFDO ''& $XJ   WKH UHFRUG SURYLGHV QR GHILQLWLYH DVVXPSWLRQVWKHGLVWLQFWLRQLQLPPLJUDWLRQODZEHWZHHQ HYLGHQFHRQWKHPDWWHU H[FOXGDEOH DQG GHSRUWDEOH DOLHQV KDV QR FRQVWLWXWLRQDO VLJQLILFDQFH DQG  0H]HL QR ORQJHU FRQWUROV WKH &&DUEDOORjV)LUVW+DEHDV3HWLWLRQ FRQVWLWXWLRQDO DQDO\VLV RI LQGHILQLWH GHWHQWLRQ DW OHDVW IRU H[FOXGDEOHDOLHQV 2Q6HSWHPEHU&DUEDOORILOHGDSURVHSHWLWLRQIRU DZULWRIKDEHDVFRUSXVXQGHU86&†LQWKH8QLWHG 7KH6XSUHPH&RXUWjV'HFLVLRQLQ=DGY\GDVY'DYLV 6WDWHV'LVWULFW&RXUWIRUWKH1RUWKHUQ'LVWULFWRI7H[DV7KLV SHWLWLRQFKDOOHQJHGWKHDXWKRULW\RIWKH$WWRUQH\*HQHUDOWR $IWHUWKLVFRXUWGHFLGHG5RVDOHV*DUFLDWKH6XSUHPH&RXUW FRQWLQXHWKHGHWHQWLRQRIDQH[FOXGDEOHDOLHQDIWHUSDVVDJHRI FRQVLGHUHGWKHFRQVWLWXWLRQDOLW\RIWKHLQGHILQLWHGHWHQWLRQRI D UHDVRQDEOH WLPH WR HIIHFW GHSRUWDWLRQ  $GGLWLRQDOO\ UHVLGHQWDOLHQVLQ=DGY\GDVY'DYLV6&W &DUEDOOR DUJXHG WKDW WKH FRQWLQXHG GHQLDO RI LPPLJUDWLRQ $QQRXQFLQJWKDWFRQVWUXFWLRQRIDQDPELJXRXVSRVW,,5,5$ SDUROH RFFXUUHG ZLWKRXW GXH SURFHVV RI ODZ DQG WKDW VWDWXWHWRDXWKRUL]HLQGHILQLWHGHWHQWLRQZRXOGUDLVHVHULRXV LQWHUQDWLRQDOODZSURKLELWHGWKHFRQGLWLRQVDQGGXUDWLRQRIKLV FRQVWLWXWLRQDOSUREOHPVWKH&RXUWUHDG86&†D  FRQILQHPHQW DV OLPLWLQJ SRVWUHPRYDOSHULRG GHWHQWLRQ mWR D SHULRG UHDVRQDEO\QHFHVVDU\WREULQJDERXWWKDWDOLHQjVUHPRYDOIURP 5HFRJQL]LQJ WKH SOHQDU\ SRZHU RI WKH SROLWLFDO EUDQFKHV WKH 8QLWHG 6WDWHVl  ,G DW   7KH &RXUW UHDVRQHG WKDW RYHULPPLJUDWLRQPDWWHUVDPDJLVWUDWHMXGJHUHFRPPHQGHG EHFDXVH WKH 'XH 3URFHVV &ODXVH RI WKH )LIWK $PHQGPHQW GHQLDORI&DUEDOORjVSHWLWLRQRQWKHJURXQGWKDWSURWHFWLRQRI DSSOLHVWRDOOSHUVRQVZLWKLQWKH8QLWHG6WDWHVZKHWKHULQWKH WKH $PHULFDQ SXEOLF MXVWLILHG KLV FRQWLQXHG FRQILQHPHQW FRXQWU\OHJDOO\LOOHJDOO\WHPSRUDULO\RUSHUPDQHQWO\m>W@KH )XUWKHU WKH PDJLVWUDWH MXGJH UHDVRQHG WKDW &DUEDOOR KDG VHULRXVFRQVWLWXWLRQDOSUREOHPDULVLQJRXWRIDVWDWXWHWKDWLQ UHJXODUO\UHFHLYHGDOOWKHSURFHVVWRZKLFKKHLVGXHWKURXJK WKHVH FLUFXPVWDQFHV SHUPLWV DQ LQGHILQLWH SHUKDSV WKH,16jVSHULRGLFUHYLHZRIKLVFDVHSXUVXDQWWRWKH0DULHO SHUPDQHQWGHSULYDWLRQRIKXPDQOLEHUW\ZLWKRXW>DGHTXDWH UHJXODWLRQV  )LQDOO\ WKH PDJLVWUDWH MXGJH FRQFOXGHG WKDW SURFHGXUDOSURWHFWLRQV@LVREYLRXVl,GDW SURPXOJDWLRQRIWKHVHUHJXODWLRQVGLVSODFHGWKHSXEOLFODZRI QDWLRQVVRWKDWLQWHUQDWLRQDOODZGLGQRWFRQWURO&DUEDOORjV 7KH VWDWXWH EHIRUH WKH &RXUW LQ =DGY\GDVnVHFWLRQ FDVH2Q1RYHPEHUWKHGLVWULFWFRXUWDFFHSWHGWKH D nLV QRW WKH VWDWXWH DW LVVXH LQ WKLV FDVH UHFRPPHQGDWLRQRIWKHPDJLVWUDWHMXGJHDQGHQWHUHGDQRUGHU ,QWHUSUHWLQJ VHFWLRQ D  WKH =DGY\GDV &RXUW GHQ\LQJ&DUEDOORjVSHWLWLRQIRUDZULWRIKDEHDVFRUSXV7KLV FRQFOXGHGWKDWLQGHILQLWHGHWHQWLRQRIDUHVLGHQWDOLHQZRXOG RUGHUEHFDPHILQDOZKHQ&DUEDOORIDLOHGWRDSSHDO SRVH VHULRXV FRQVWLWXWLRQDO SUREOHPV EXW FDUHIXOO\ GLVWLQJXLVKHGWKHVLWXDWLRQRIH[FOXGDEOHDOLHQVZKRPWKHODZ ,,sXULVGLFWLRQDQG6WDQGDUGRI5HYLHZ UHJDUGV DV VWDQGLQJ DWnEXW RXWVLGHnWKH ERUGHU  $W WKH RXWVHWRIWKHRSLQLRQWKH&RXUWOLPLWHGWKHLVVXHEHIRUHLWVR 8QGHU86&†DSHWLWLRQHUPD\ILOHDSHWLWLRQIRU DVWRH[FHSWH[FOXGDEOHDOLHQVIURPLWVDQDO\VLV DZULWRIKDEHDVFRUSXVLQWKHGLVWULFWFRXUWKDYLQJMXULVGLFWLRQ RYHUKLVFXVWRGLDQ&KDUOHVY&KDQGOHU)G :H GHDO KHUH ZLWK DOLHQV ZKR ZHUH DGPLWWHG WR WKH WK&LUSHUFXULDP86&†JSURYLGHV 8QLWHG6WDWHVEXWVXEVHTXHQWO\RUGHUHGUHPRYHG$OLHQV ZKRKDYHQRW\HWJDLQHGLQLWLDODGPLVVLRQWRWKHFRXQWU\ ([FHSWDVSURYLGHGLQWKLVVHFWLRQDQGQRWZLWKVWDQGLQJ ZRXOGSUHVHQWDYHU\GLIIHUHQWTXHVWLRQ DQ\ RWKHU SURYLVLRQ RI ODZ QR FRXUW VKDOO KDYH MXULVGLFWLRQWRKHDUDQ\FDXVHRUFODLPE\RURQEHKDOIRI  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

DQ\ DOLHQ DULVLQJ IURP WKH GHFLVLRQ RU DFWLRQ E\ WKH FRXUWUHFRJQL]HGWKDWWKH6XSUHPH&RXUWKDGVXEVHTXHQWO\ $WWRUQH\*HQHUDOWRFRPPHQFHSURFHHGLQJVDGMXGLFDWH H[WHQGHG mWR DOLHQV EDVLF )LIWK 6L[WK DQG )RXUWHHQWK FDVHVRUH[HFXWHUHPRYDORUGHUVDJDLQVWDQ\DOLHQXQGHU $PHQGPHQW SURWHFWLRQVl  ,G DW   6HFRQG WKH FRXUW WKLVFKDSWHU OLPLWHG0H]HLWRLWVIDFWVE\HPSKDVL]LQJWKHQDWLRQDOVHFXULW\ DVSHFWRIWKHFDVHDQGWKHEDFNJURXQGRIWKH.RUHDQ:DU,G 1RWZLWKVWDQGLQJWKLVEURDGODQJXDJHZKLFKRQLWVIDFHZRXOG DW   %DVHG RQ WKLV UHDGLQJ RI 0H]HL WKH FRXUW DSSHDUWRSUHFOXGHMXGLFLDOUHYLHZRIDKDEHDVSHWLWLRQILOHGE\ mHPSKDWLFDOO\ UHMHFW>HG@ WKH JRYHUQPHQWjV SUHPLVH WKDW DQ DOLHQ LQ &DUEDOORjV FLUFXPVWDQFH DEVHQW FRQJUHVVLRQDO H[FOXGDEOH DOLHQV DUH FRPSOHWHO\ IRUHLJQ WR WKH )LIWK GLUHFWLRQWRWKHFRQWUDU\WKH6XSUHPH&RXUWKDVFRQFOXGHG $PHQGPHQWRIWKH&RQVWLWXWLRQl,GDW%HFDXVHWKH WKDWVHFWLRQFRQIHUVMXULVGLFWLRQXSRQWKHIHGHUDOFRXUWV ,16 FRXOG QHLWKHU H[HFXWH QRU WRUWXUH DQ H[FOXGDEOH DOLHQ WR HQWHUWDLQ VWDWXWRU\ DQG FRQVWLWXWLRQDO FKDOOHQJHV WR DQ FRQVWLWXWLRQDOO\ WKH FRXUW GHFOLQHG mWR GUDZ D OLQH RI DOLHQjV GHWHQWLRQ IROORZLQJ HQWU\ RI DQ RUGHU RI UHPRYDO FRQVWLWXWLRQDO GLPHQVLRQ EHWZHHQ WKH DFW RI WRUWXULQJ DQ =DGY\GDV Y 'DYLV  6 &W    H[FOXGDEOH DOLHQ DQG WKH DFW RI LPSULVRQLQJ VXFK DQ DOLHQ 7KHUHIRUH ZH KDYH MXULVGLFWLRQ WR HQWHUWDLQ 3HWLWLRQHUjV LQGHILQLWHO\lEHFDXVHmDOLHQVnHYHQH[FOXGDEOHDOLHQVnDUH DSSHDO  :H UHYLHZ WKH GHQLDO RI D SHWLWLRQ IRU D ZULW RI µSHUVRQVjHQWLWOHGWRWKH&RQVWLWXWLRQjVPRVWEDVLFSURWHFWLRQV KDEHDVFRUSXVGHQRYRDQGWKHGLVWULFWFRXUWjVIDFWXDOILQGLQJV DQGVWULFWXUHVl,G IRUFOHDUHUURU5RJHUVY+RZHV)GWK&LU IRRWQRWHRPLWWHG +DYLQJWKHQSURFHHGHGWRWKHFRQFOXVLRQWKDWWKHLQGHILQLWH GHWHQWLRQ RI DQ H[FOXGDEOH DOLHQ YLRODWHV WKH 'XH 3URFHVV %DVHG RQ WKH  GHFLVLRQ RI D FRRUGLQDWH FRXUW WKH &ODXVH RI WKH )LIWK $PHQGPHQW LG DW  WKH FRXUW GLVWULFW FRXUW LQYRNHG WKH ODZ RI WKH FDVH GRFWULQH DQG DQQRXQFHG D WHVW IRU GHWHUPLQLQJ ZKHWKHU WKH IHGHUDO GLVPLVVHG&DUEDOORjVSHWLWLRQ2QDSSHDO5HVSRQGHQWVXUJH JRYHUQPHQWjVGLSORPDWLFHIIRUWVZLWKDQDOLHQjVKRPHQDWLRQ DIILUPDQFHRQWKLVJURXQGRULQWKHDOWHUQDWLYHRQWKHJURXQG VXIILFH WR MXVWLI\ FRQWLQXHG GHWHQWLRQ  ,G DW  WKDW &DUEDOOR KDV QRW GHPRQVWUDWHG FDXVH DQG SUHMXGLFH WR 1RWZLWKVWDQGLQJWKH7HQWK&LUFXLWjVDEURJDWLRQRILWVGHFLVLRQ MXVWLI\FRQVLGHUDWLRQRIDVXFFHVVLYHDQGDEXVLYHSHWLWLRQ:H LQ5RGULJXH])HUQDQGH]WKHFRXUWFRQFOXGHGE\DGRSWLQJWKH WXUQ ILUVW WR WKH JURXQG RQ ZKLFK WKH GLVWULFW FRXUW GHQLHG UHDVRQLQJRIWKDWFDVHLQVXSSRUWRILWVKROGLQJ &DUEDOORjVSHWLWLRQ :H DJUHH ZLWK WKH 7HQWK &LUFXLW WKDW ZKHQ DQ DOLHQjV ,,,/DZRIWKH&DVH'RFWULQH KRPH FRXQWU\ UHIXVHV WR DFFHSW KLP LW DSSHDUV WKDW mGHWHQWLRQLV>@XVHGDVDQDOWHUQDWLYHWRH[FOXVLRQUDWKHU m8QGHUWKHGRFWULQHRIWKHODZRIWKHFDVHDGHFLVLRQRQDQ WKDQDVWHSLQWKHSURFHVVRIUHWXUQLQJSHWLWLRQHUWRKLV LVVXHPDGHE\DFRXUWDWRQHVWDJHRIDFDVHVKRXOGEHJLYHQ QDWLYH&XEDl5RGULJXH])HUQDQGH]Y:LONLQVRQ HIIHFW LQ VXFFHVVLYH VWDJHV RI WKH VDPH OLWLJDWLRQl 8QLWHG )GWK&LUFI&KL7KRQ1JR 6WDWHV Y 7RGG  )G   WK &LU  FLWLQJ )GDWm,WLV>@XQUHDOLVWLFWREHOLHYHWKDWWKHVH,16 &KULVWLDQVRQY&ROW,QGXV2SHUDWLQJ&RUS86 GHWDLQHHVDUHQRWDFWXDOO\EHLQJµSXQLVKHGjLQVRPHVHQVH     2SHUDWLRQ RI WKLV GRFWULQH GHSHQGV XSRQ IRUWKHLUSDVWFRQGXFWl:HFRQFOXGHWKHUHIRUHWKDW ZKHWKHU D FRXUW SUHYLRXVO\ GHFLGHG RQ D UXOH RI ODZ 5RVDOHVjVGHWHQWLRQKDVFURVVHGWKHOLQHIURPSHUPLVVLYH &KULVWLDQVRQ86DW$FFRUGLQJO\WKHGRFWULQHRQO\ UHJXODWRU\ FRQILQHPHQW WR LPSHUPLVVLEOH SXQLVKPHQW DSSOLHVWRLGHQWLFDOLVVXHVGHFLGHGH[SOLFLWO\RUE\QHFHVVDU\ ZLWKRXWWULDO LQIHUHQFH+DQRYHU,QV&RY$PHULFDQ(QJjJ&R)G   WK &LU   $GGLWLRQDOO\ LW DSSOLHV ZLWK DV  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

ILFWLRQ DSSOLHG WR WKHVH FDVHV WKDW GHWHQWLRQ LV RQO\ D PXFK IRUFH WR WKH GHFLVLRQV RI D FRRUGLQDWH FRXUW DV WR D FRQWLQXDWLRQRIWKHH[FOXVLRQ FRXUWjVRZQGHFLVLRQV&KULVWLDQVRQ86DW ,G DW  IRRWQRWH RPLWWHG  )XUWKHU WKH FRXUW GLG QRW 5DWKHU WKDQ FRQVWLWXWLQJ D OLPLW WR MXGLFLDO SRZHU WKH UHJDUG 0H]HL DV FRQWUROOLQJ EHFDXVH RI WKH SDUWLFXODU IDFWV GRFWULQHH[SUHVVHVWKHJHQHUDOSUDFWLFHRIFRXUWVWRUHIXVHWR SUHVHQWHGWKHUHQDPHO\WKHQDWLRQDOVHFXULW\ULVNVDWWHQGLQJ UHYLVLWVHWWOHGPDWWHUV0HVVLQJHUY$QGHUVRQ86 WKH.RUHDQ:DUDQGWKHJRYHUQPHQWjVFRQWLQXLQJHIIRUWVWR 3HWLWLRQRI866WHHO&RUS)G GHSRUW 0H]HL  ,G DW   %HFDXVH RI WKH VHULRXV WK&LU7KHVHSULQFLSOHVJRYHUQZKHQWKHGRFWULQH FRQVWLWXWLRQDO LVVXHV OXUNLQJ LQ WKH EDFNJURXQG WKH FRXUW RSHUDWHV WR JLYH HIIHFW WR WKH MXGJPHQW RI WKH VDPH RU D SUHIHUUHG WR GHFLGH 5RGULJXH])HUQDQGH]jV SHWLWLRQ RQ FRRUGLQDWH FRXUW WKH\ mQHYHU EORFN>@ D KLJKHU FRXUW IURP VWDWXWRU\JURXQGV,GDW H[DPLQLQJDGHFLVLRQRIDQLQIHULRUWULEXQDOl,QUH5HOLDEOH 'UXJ6WRUHV,QF)GWK&LU6HHDOVR 6XEVHTXHQW SURPXOJDWLRQ RI WKH 0DULHO UHJXODWLRQV DQG &KULVWLDQVRQ86DWH[SODLQLQJWKDWmDGLVWULFW &RQJUHVVjV HQDFWPHQW RI IRUPHU VHFWLRQ H LQ WKH FRXUWjVDGKHUHQFHWRODZRIWKHFDVHFDQQRWLQVXODWHDQLVVXH ,PPLJUDWLRQ$FWRIKDYHDEURJDWHGWKH7HQWK&LUFXLWjV IURPDSSHOODWHUHYLHZl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WKLVFRXUWUHYHUVHGWKHGLVWULFWFRXUWjVGHQLDORI QRW  6HH &RXQW\ RI 6XIIRON Y 6WRQH  :HEVWHU (QJjJ D KDEHDV SHWLWLRQ EURXJKW E\ D 0DULHO &XEDQ  $IWHU &RUS)GG&LU$SDUW\ZKR FRQFOXGLQJWKDWIRUPHUVHFWLRQHH[SUHVVO\JUDQWHGWKH FRXOGKDYHVRXJKWUHYLHZRIDQLVVXHRUDUXOLQJGXULQJ $WWRUQH\*HQHUDOWKHDXWKRULW\WRGHWDLQDQH[FOXGDEOHDOLHQ D SULRU DSSHDO LV GHHPHG WR KDYH ZDLYHG WKH ULJKW WR LQGHILQLWHO\ LG DW  WKH FRXUW GLVFRXQWHG WKH FKDOOHQJHWKDWGHFLVLRQWKHUHDIWHUIRUmLWZRXOGEHDEVXUG JRYHUQPHQWjVUHOLDQFHRQ0H]HLIRUWZRUHDVRQV)LUVWWKH WKDWDSDUW\ZKRKDVFKRVHQQRWWRDUJXHDSRLQWRQDILUVW DSSHDOVKRXOGVWDQGEHWWHUDVUHJDUGVWKHODZRIWKHFDVH WKDQRQHZKRKDGDUJXHGDQGORVWl)RJHOY&KHVWQXWW  3ULRU WR WKH GHFLVLRQ LQ 5RVDOHV*DUFLD WKLV FLUFXLW KDG XSKHOG WKH )GG&LU FRQVWLWXWLRQDOLW\ RI LQGHILQLWH GHWHQWLRQ RQO\ LQ XQSXEOLVKHG RSLQLRQV RI QR SUHFHGHQWLDO YDOXH 6HH *DUFLD$UHQD Y /XWWUHOO 1R   8QLWHG6WDWHVY$GHVLGD)GWK&LU :/  WK &LU 'HF   %HWDQFRXUW Y &KDQGOHU 1R    :/  WK &LU 6HSW   /DHWLYLGDG Y ,16 1R )HGHUDOODZWUHDWVHDFKSHWLWLRQIRUDZULWRIKDEHDVFRUSXV   :/  WK &LU 'HF   )HUQDQGH]6DQWDQD DVDVHSDUDWHFLYLODFWLRQUDWKHUWKDQDVDFRQWLQXDWLRQRIWKH Y &KDQGOHU 1R   :/  WK &LU 'HF   0DUUHUR0RQWHV Y 8QLWHG 6WDWHV 1R   :/  WK FULPLQDODSSHDOVSURFHVV6HHHJ8QLWHG6WDWHVY0RUJDQ &LU 1RY   *RQ]DOH] Y /XWWUHOO 1R   :/   86   Q  m>7KH ZULW RI HUURU FRUDP WK &LU 2FW   QRELV@ LV D VWHS LQ WKH FULPLQDO FDVH DQG QRW OLNH KDEHDV  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

FRUSXVZKHUHUHOLHILVVRXJKWLQDVHSDUDWHFDVHDQGUHFRUGWKH WKHUHDUHDGHTXDWHDQGUHDVRQDEOHSURYLVLRQVIRUWKH EHJLQQLQJRIDVHSDUDWHFLYLO3URFHHGLQJlFLWLQJ.XUW]Y JUDQWRISDUROHDQGGHWHQWLRQLVQHFHVVDU\WRSUHYHQW 0RIILWW86 )RUWKLVUHDVRQZHWKLQN DULVNRIIOLJKWRUDWKUHDWWRWKHFRPPXQLW\ WKDWODZRIWKHFDVHGRFWULQHGRHVQRWDSSO\WRVHFRQGDQG VXFFHVVLYH SHWLWLRQV  ,QVWHDG D ERG\ RI ODZ JRYHUQLQJ &KL7KRQ1JR)GDW DEXVLYH DQG VXFFHVVLYH SHWLWLRQV SURYLGHV D FKHFN RQ WKH OLWLJLRXVQHVVRIKDEHDVSHWLWLRQHUV7KHUHIRUHZHFRQFOXGH 8QWLOUHFHQWO\RQO\WKH7HQWK&LUFXLWKDGGHSDUWHGIURPWKH WKDWWKHGLVWULFWFRXUWHUUHGLQGHFOLQLQJWRFRQVLGHU&DUEDOORjV SRVLWLRQWDNHQE\WKHPDMRULW\RIFLUFXLWVLQUHOLDQFHRQ0H]HL SHWLWLRQRQWKLVJURXQG ,Q5RGULJXH])HUQDQGH]Y:LONLQVRQ)GWK &LU   GHFLVLRQ WKH FRXUW FRQVLGHUHG WKH KDEHDV ,96XFFHVVLYHDQG$EXVLYH+DEHDV3HWLWLRQV SHWLWLRQRID0DULHO&XEDQDWDWLPHSULRUWRSURPXOJDWLRQRI WKH0DULHOUHJXODWLRQVRUWKHHQDFWPHQWRIVWDWXWRU\DXWKRULW\ 5HVSRQGHQWVDUJXHLQWKHDOWHUQDWLYHWKDWWKHFRXUWRXJKWWR IRU WKH $WWRUQH\ *HQHUDO WR GHWDLQ DQ H[FOXGDEOH DOLHQ GLVPLVVWKHSHWLWLRQDVVXFFHVVLYHDQGDEXVLYH2QDSSHDO LQGHILQLWHO\LQVHFWLRQH7KHUHWKH$WWRUQH\*HQHUDO 5HVSRQGHQWVPDLQWDLQWKDWERWKWKHVWDWXWRU\PRGLILFDWLRQV FODVVLILHG5RGULJXH])HUQDQGH]DVVXLWDEOHIRULPPLJUDWLRQ JRYHUQLQJ VXFFHVVLYH DQG DEXVLYH SHWLWLRQV HQDFWHG LQ WKH SDUROHEXWQRQHWKHOHVVFRQWLQXHGKLV GHWHQWLRQEDVHGRQD $QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWRI3XE JRYHUQPHQWDOVWD\RIDOOSDUROHUHOHDVHVSHQGLQJUHYLHZRIWKH /1R6WDWm$('3$lDQGDEXVHRIWKH HQWLUHVLWXDWLRQFUHDWHGE\WKH0DULHOH[RGXVZLWKRXWPDNLQJ ZULWGRFWULQHSUHVHQWDGGLWLRQDOKXUGOHVWRFRQVLGHUDWLRQRIWKH DQ LQGLYLGXDOL]HG GHWHUPLQDWLRQ RI ZKHWKHU SDUROH RI PHULWVRI&DUEDOORjVSHWLWLRQ 5RGULJXH])HUQDQGH]ZDVSUDFWLFDEOHRUSRVVLEOH&RQVWUXLQJ WKHDSSOLFDEOHVWDWXWHDVDXWKRUL]LQJRQO\WHPSRUDU\GHWHQWLRQ 6HFWLRQVDQGRIWKH$('3$DPHQGHG86& IRUDUHDVRQDEOHSHULRGWRQHJRWLDWHDQGHIIHFWGHSRUWDWLRQWKH ††  DQG  UHVSHFWLYHO\ WR FUHDWH D GHIDXOW UXOH FRXUWVRXJKWWRDYRLGZKDWLWFRQVLGHUHGVHULRXVFRQVWLWXWLRQDO UHTXLULQJ FRXUWV WR GLVPLVV VHFRQG RU VXFFHVVLYH SHWLWLRQV SUREOHPVE\GHFLGLQJWKHFDVHRQDQLQWHUSUHWDWLRQRIWKH,1$ H[FHSW LQ FHUWDLQ OLPLWHG FLUFXPVWDQFHV  %\ WKHLU WHUPV ,GDW'HFOLQLQJWRGUDZDGLVWLQFWLRQEHWZHHQ QHLWKHURIWKHVHmJDWHNHHSLQJSURYLVLRQVlDSSOLHVWRSHWLWLRQV H[FOXGHG DOLHQV UHJDUGHG DV VWDQGLQJ DW WKH ERUGHU DQG ILOHGXQGHUVHFWLRQ,QUH+DQVHUG)G UHVLGHQWDOLHQVLGDWQWKHFRXUWUXOHGWKDWH[FOXGHG WK&LUm$†PRWLRQZRXOGQRWEHEDUUHGE\WKH DOLHQVHQMR\WKHIXOOSURWHFWLRQVRIWKH)LIWK$PHQGPHQW QHZ UHVWULFWLRQV RQ VXFFHVVLYH PRWLRQV DQG SHWLWLRQVl %HFDXVHVHFWLRQSRWHQWLDOO\DOORZVDSHWLWLRQHUWRHYDGH 7KXVLWZRXOGDSSHDUWKDWDQH[FOXGHGDOLHQLQSK\VLFDO WKHVHUHTXLUHPHQWVKRZHYHUFRXUWVKDYHDWWHPSWHGWRGHILQH FXVWRG\ZLWKLQWKH8QLWHG6WDWHVPD\QRWEHmSXQLVKHGl FLUFXPVWDQFHVXQGHUZKLFKWKH$('3$jVQHZJDWHNHHSLQJ ZLWKRXWEHLQJDFFRUGHGWKHVXEVWDQWLYHDQGSURFHGXUDO UXOHV ZLOO EDU D VHFRQG RU VXFFHVVLYH SHWLWLRQ ILOHG XQGHU GXHSURFHVVJXDUDQWHHVRIWKH)LIWK$PHQGPHQW6XUHO\ VHFWLRQ(J&KDUOHV)GDWKROGLQJWKDWD &RQJUHVV FRXOG QRW RUGHU WKH NLOOLQJ RI 5RGULJXH] SHWLWLRQHUZLOOUHFHLYHmRQO\RQHELWHDWWKHSRVWFRQYLFWLRQ )HUQDQGH] DQG RWKHUV LQ KLV VWDWXV RQ WKH JURXQG WKDW DSSOHlXQOHVVKHFDQVKRZHLWKHUWKDWKHKDVQHZO\GLVFRYHUHG &XEDZRXOGQRWWDNHWKHPEDFNDQGWKLVFRXQWU\GRHVQRW HYLGHQFH RU WKDW D QHZ UXOH RI FRQVWLWXWLRQDO ODZ PDGH ZDQW WKHP      &HUWDLQO\ LPSULVRQPHQW LQ D IHGHUDO UHWURDFWLYH WR FDVHV RQ FROODWHUDO UHYLHZ E\ WKH 6XSUHPH SULVRQ RI RQH ZKR KDV EHHQ QHLWKHU FKDUJHG QRU &RXUWWKDWZDVSUHYLRXVO\XQDYDLODEOHDSSOLHV8QLWHG6WDWHV FRQYLFWHGRIDFULPLQDORIIHQVHLVDGHSULYDWLRQRIOLEHUW\ Y %DUUHWW  )G   VW &LU  DOORZLQJ D LQ YLRODWLRQ RI WKH )LIWK $PHQGPHQW H[FHSW IRU WKH  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

FRXUW XQOHVV H[SUHVVO\ DXWKRUL]HG E\ ODZ WR UHYLHZ WKH SHWLWLRQHUDVVHUWLQJDFODLPRIDFWXDOLQQRFHQFHWRXVHVHFWLRQ GHWHUPLQDWLRQRIWKHSROLWLFDOEUDQFKRIWKH*RYHUQPHQWl,G WRFLUFXPYHQWWKHJDWHNHHSLQJSURYLVLRQV 7KDW0H]HLUHPDLQHGLQGHILQLWHO\GHWDLQHGDW(OOLV,VODQGLQ WKH&RXUWjVHVWLPDWLRQGLGQRWDOWHUKLVVWDWXVDVH[FOXGDEOH ,QWKHLPPLJUDWLRQFRQWH[WVHFWLRQSOD\VDVRPHZKDW RUGHSULYHKLPRIDQ\VWDWXWRU\RUFRQVWLWXWLRQDOULJKW,GDW GLIIHUHQW UROH VLQFH QHLWKHU VHFWLRQ  QRU VHFWLRQ  )LQDOO\WKHQDWLRQDOVHFXULW\LPSOLFDWLRQVRI0H]HLjV DSSOLHVWRDSHWLWLRQHUZKRLVQRWLQIHGHUDOFXVWRG\SXUVXDQW FDVHMXVWLILHGDKLJKHUGHJUHHRIFDXWLRQWKDQWKHW\SLFDOFDVH WRDFRQYLFWLRQLQFRXUW6HFWLRQD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jV0DULHOUHJXODWLRQVDVHVWDEOLVKLQJDVHULHV RIRQH\HDUSHULRGVRIGHWHQWLRQIROORZHGE\DQRSSRUWXQLW\ (PSKDVLV DGGHG  %HFDXVH WKH ,16 FRQWLQXHV WR GHWDLQ WR VHHN LPPLJUDWLRQ SDUROH  (J %DUUHUD(FKDYDUULD  &DUEDOOREDVHGRQDGPLQLVWUDWLYHDFWLRQVWDNHQSXUVXDQWWRWKH )GDW2WKHUFRXUWVKDYHGHIHUUHGWRWKHSOHQDU\SRZHU 0DULHO UHJXODWLRQV UDWKHU WKDQ WKH MXGJPHQW RI D FRXUW RIWKH&RQJUHVVWRUHJXODWHLPPLJUDWLRQDQGRIWKH3UHVLGHQW VHFWLRQDE\LWVRZQWHUPVGRHVQRWJRYHUQKLVSHWLWLRQ WRFRQGXFWIRUHLJQDIIDLUV(J&DUUHUD9DOGH])GDW IRU D ZULW RI KDEHDV FRUSXV  %DUDSLQG Y 5HQR  )G $VIRUVXEVWDQWLYHGXHSURFHVVFRXUWVKDYHIRXQG WK&LU)RUVLPLODUUHDVRQVVHFWLRQ ERWKWKDWLQGHILQLWHGHWHQWLRQGRHVQRWFRQVWLWXWHSXQLVKPHQW OLPLWHGWRmSULVRQHUVLQFXVWRG\XQGHUVHQWHQFHRIDFRXUWl EHFDXVHRIWKHJRYHUQPHQWjVXQGHUO\LQJOHJLWLPDWHLQWHUHVWLQ GRHVQRWDSSO\$FFRUGLQJO\VHFWLRQSURYLGHVWKHRQO\ SURWHFWLQJ LWV FLWL]HQV *LVEHUW  )G DW  DQG WKDW DYHQXH IRU &DUEDOOR WR KDYH DFFHVV WR D IHGHUDO FRXUW WR &RQJUHVV QRW WKH )LIWK $PHQGPHQW GHILQHV WKH H[WHQW RI FKDOOHQJHKLVFRQWLQXHGFXVWRG\6HH,16Y6W&\U6 SURWHFWLRQVIRUH[FOXGDEOHDOLHQVZKRDIWHUDOODUHQRWnDVD &W    m$W LWV KLVWRULFDO FRUH WKH ZULW RI PDWWHURIODZnZLWKLQWKH8QLWHG6WDWHV*X]PDQ)G KDEHDVFRUSXVKDVVHUYHGDVDPHDQVRIUHYLHZLQJWKHOHJDOLW\ DW  3DOPD  )G DW  TXRWLQJ .QDXII Y RIH[HFXWLYHGHWHQWLRQ>@l 6KDXJKQHVV\86 $GGLWLRQDOO\WKHVH FRXUWVKDYHUXOHGWKDWWKH,PPLJUDWLRQDQG1DWLRQDOLW\$FW 2I FRXUVH WKLV FRQFOXVLRQ GRHV QRW PHDQ WKDW XQOLNH m,1$l WKH ,16jV 0DULHO UHJXODWLRQV DQG WKH 6XSUHPH SHWLWLRQHUV SURFHHGLQJ SXUVXDQW WR VHFWLRQV  RU  &RXUWjVGHFLVLRQLQ0H]HLDOOGLVSODFHLQWHUQDWLRQDOODZ(J &DUEDOORFDQH[SHFWDFRXUWWRUHYLHZKLVFODLPVLQVHFRQGRU *X]PDQ)GDW$VRQHFRXUWVXPPDUL]HGWKHYLHZ VXFFHVVLYHSHWLWLRQVZLWKRXWOLPLW,QIDFWDOWKRXJKVHFWLRQ RIWKHPDMRULW\RIFLUFXLWV IDFLDOO\HVFDSHVWKH$('3$jVJDWHNHHSLQJSURYLVLRQV WKH JHQHUDO SULQFLSOHV XQGHUO\LQJ WKHVH UHFHQWO\ HQDFWHG >&@DVHODZKROGVWKHUHLVQRFRQVWLWXWLRQDOLPSHGLPHQWWR OLPLWDWLRQVRQWKHLVVXDQFHRIWKHZULWLQIRUPDIHGHUDOFRXUWjV WKHLQGHILQLWHGHWHQWLRQRIDQDOLHQZLWKDFULPLQDOUHFRUG SURSHU KDQGOLQJ RI VHFRQG RU VXFFHVVLYH SHWLWLRQV  ,Q XQGHUDILQDORUGHURIH[FOXVLRQGHSRUWDWLRQRUUHPRYDO LQWHUSUHWLQJWKHHIIHFWRIWKH$('3$RQLWVSRZHUWRJUDQW LI  WKHUH LV D SRVVLELOLW\ RI KLV HYHQWXDO GHSDUWXUH ZULWV RI KDEHDV FRUSXV ILOHG DV DQ RULJLQDO PDWWHU XQGHU VHFWLRQWKH6XSUHPH&RXUWKDVFRQFOXGHG  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

7KHQHZUHVWULFWLRQVRQVXFFHVVLYHSHWLWLRQVFRQVWLWXWHD LPSOLFLWO\ DXWKRUL]HG WKH $WWRUQH\ *HQHUDO WR GHWDLQ PRGLILHGUHVMXGLFDWDUXOHDUHVWUDLQWRQZKDWLVFDOOHGLQ H[FOXGDEOHDOLHQVLQGHILQLWHO\ KDEHDVFRUSXVSUDFWLFHmDEXVHRIWKHZULWl,Q0F&OHVNH\ Y=DQW86ZHVDLGWKDWmWKHGRFWULQH &RXUWV XSKROGLQJ WKH FRQVWLWXWLRQDOLW\ RI WKH $WWRUQH\ RI DEXVH RI WKH ZULW UHIHUV WR D FRPSOH[ DQG HYROYLQJ *HQHUDOjVDXWKRULW\WRGHWDLQH[FOXGDEOHDOLHQVLQGHILQLWHO\ ERG\RIHTXLWDEOHSULQFLSOHVLQIRUPHGDQGFRQWUROOHGE\ UHO\SULQFLSDOO\RQ6KDXJKQHVV\Y8QLWHG6WDWHVH[UHO0H]HL KLVWRULFDO XVDJH VWDWXWRU\ GHYHORSPHQWV DQG MXGLFLDO 86GHFLVLRQ,Q0H]HLWKH6XSUHPH GHFLVLRQVl,GDW7KHDGGHGUHVWULFWLRQVZKLFKWKH &RXUWFRQVLGHUHGZKHWKHUWKH$WWRUQH\*HQHUDOjVSHUPDQHQW $FWSODFHVRQVHFRQGKDEHDVSHWLWLRQVDUHZHOOZLWKLQWKH H[FOXVLRQRIDQDOLHQZLWKRXWDKHDULQJFRQVWLWXWHGXQODZIXO FRPSDVVRIWKLVHYROXWLRQDU\SURFHVV>@ GHWHQWLRQ,GDW+DYLQJLPPLJUDWHGWRWKH8QLWHG6WDWHV DVDFKLOG0H]HLOHIWWKHFRXQWU\LQWRYLVLWKLVG\LQJ )HONHUY7XUSLQ86$FFRUGLQJO\ PRWKHU LQ 5RPDQLD  8QDEOH WR REWDLQ HQWU\ KH VWD\HG LQ HYHQ WKRXJK WKH JDWHNHHSLQJ SURYLVLRQV GR QRW H[SUHVVO\ +XQJDU\ IRU RYHU HLJKWHHQ PRQWKV DQG WKHQ DWWHPSWHG WR DSSO\LQWKHVHFWLRQFRQWH[WmWKH\FHUWDLQO\LQIRUPRXU UHWXUQ WR WKH 8QLWHG 6WDWHV  8SRQ 0H]HLjV DUULYDO DW (OOLV FRQVLGHUDWLRQRIRULJLQDOKDEHDVSHWLWLRQVl,GDW6HH ,VODQG DQ LPPLJUDWLRQ LQVSHFWRU RUGHUHG KLV WHPSRUDU\ DOVR%DUDSLQG)GDW*UD\%H\Y8QLWHG6WDWHV H[FOXVLRQ ZKLFK WKH $WWRUQH\ *HQHUDO PDGH SHUPDQHQW  )G   WK &LU  m>$@ FRXUW LQ ZKLFK D ZLWKRXW D KHDULQJ RQ WKH EDVLV RI VHFUHW XQGLVFORVHG SHWLWLRQXQGHU†LVILOHGPXVWWUHDWWKHQHZVXFFHVVLYH LQIRUPDWLRQWKDW0H]HLSRVHGDVHFXULW\WKUHDWWRWKH8QLWHG SHWLWLRQUXOHVDVJXLGHSRVWVl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jVSHWLWLRQ HQWUDQFHRIDOLHQVmGXULQJSHULRGVRILQWHUQDWLRQDOWHQVLRQDQG VWULIHl  ,G DW   7KDW DXWKRULW\ DOORZHG WKH $WWRUQH\ $6HFRQGDQG6XFFHVVLYH3HWLWLRQVXQGHUWKH$('3$ *HQHUDO WR H[FOXGH DOLHQV RQ WKH EDVLV RI FRQILGHQWLDO LQIRUPDWLRQZLWKRXWDKHDULQJWKHUHIRUHWKHODZIXOQHVVRI 8QGHUVHFWLRQDDVDPHQGHGE\WKH$('3$IHGHUDO 0H]HLjV GHWHQWLRQ WXUQHG RQ WKH FRQVWLWXWLRQDOLW\ RI WKLV FRXUWVFDQRQO\HQWHUWDLQVHFRQGRUVXFFHVVLYHSHWLWLRQVXQGHU DXWKRULW\,GDW$OWKRXJKDOLHQVOHJDOO\RULOOHJDOO\ WKH WHUPV SUHVFULEHG E\ VHFWLRQ    86& †  ZLWKLQWKH8QLWHG6WDWHVHQMR\OLPLWHGGXHSURFHVVSURWHFWLRQV DOORZVFRQVLGHUDWLRQRIDVHFRQGRUVXFFHVVLYHSHWLWLRQLQWZR ZKHQ WKH JRYHUQPHQW VHHNV WR H[SHO WKHP WKH &RXUW OLPLWHGFLUFXPVWDQFHVZKHQDSHWLWLRQHUSUHVHQWVQHZO\ GLVWLQJXLVKHGWKHLUFLUFXPVWDQFHVIURPWKRVHRIDQH[FOXGHG GLVFRYHUHG HYLGHQFH VXIILFLHQW WR HVWDEOLVK E\ FOHDU DQG DOLHQZKRHYHQLISDUROHGLQWRWKH8QLWHG6WDWHVUHPDLQVDW FRQYLQFLQJHYLGHQFHWKDWQRILQGHURIIDFWZRXOGKDYHIRXQG WKHWKUHVKROGRILQLWLDOHQWU\E\RSHUDWLRQRIODZ,GDW WKH SHWLWLRQHU JXLOW\ RU  LQ WKH FDVH RI D QHZ UXOH RI )RUVXFKDOLHQV&RQJUHVVGHILQHVDOOWKHSURFHVVWKDWLV FRQVWLWXWLRQDO ODZ PDGH UHWURDFWLYH WR FDVHV RQ FROODWHUDO GXH,GDW%HFDXVHH[HFXWLYHDFWLRQXQGHUWKLVDXWKRULW\ UHYLHZ E\ WKH 6XSUHPH &RXUW WKDW ZDV SUHYLRXVO\ LVILQDODQGFRQFOXVLYHmLWLVQRWZLWKLQWKHSURYLQFHRIDQ\ XQDYDLODEOH  1HLWKHU RI WKHVH H[FHSWLRQV WR WKH $('3$jV  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

 )G DW   :H KDYH DGRSWHG WKLV LQWHUSUHWDWLRQ OLPLWDWLRQVRQVHFRQGDQGVXFFHVVLYHSHWLWLRQVDSSOLHVKHUH 5RVDOHV*DUFLD)GDW 7KHUHIRUH XQGHU WKH $('3$jV VWDQGDUG ZH FRXOG QRW HQWHUWDLQ&DUEDOORjVSHWLWLRQ $FFRUGLQJO\IRUPHUVHFWLRQHSURYLGHVWKHVWDWXWRU\ EDVLVIRUWKH,16jVFRQWLQXHGGHWHQWLRQRI3HWLWLRQHU6LQFH %7UDGLWLRQDO6XFFHVVLYH3HWLWLRQ'RFWULQH LPPLJUDWLRQ ODZ ZLWKRXW TXHVWLRQ GHILQHV &DUEDOORjV FRQYLFWLRQV DV DJJUDYDWHG IHORQLHV ZLWKLQ WKH PHDQLQJ RI 1RWZLWKVWDQGLQJ &DUEDOORjV IDLOXUH WR VDWLVI\ DOO RI WKH IRUPHUVHFWLRQH3HWLWLRQHUIDFHVSRWHQWLDOO\LQGHILQLWH IRUPDOSUHUHTXLVLWHVIRUFRQVLGHUDWLRQRIKLVVHFRQGSHWLWLRQ GHWHQWLRQ XQGHU WKH VWULFWXUHV RI WKH $('3$ ZH FRXOG DUJXDEO\ FRQVLGHU&DUEDOORjVFODLPVXQGHUWKHWUDGLWLRQDOVXFFHVVLYH )RUPHU6HFWLRQHDQGWKH6XSUHPH&RXUWjV SHWLWLRQGRFWULQHVLQFHWKHQHZJDWHNHHSLQJSURYLVLRQVRIWKH 'HFLVLRQLQ0H]HL $('3$PHUHO\mLQIRUPlUDWKHUWKDQFRQWUROFRQVLGHUDWLRQ RIDVHFRQGRUVXFFHVVLYHSHWLWLRQXQGHUVHFWLRQ8QGHU 7KHRYHUZKHOPLQJPDMRULW\RIFLUFXLWVWKDWKDYHFRQVLGHUHG WKH SUH$('3$ VWDQGDUG ZKHQ D FRXUW KDV GHQLHG D SULRU ZKHWKHUWKHIRUPHUVHFWLRQHFRQVWLWXWLRQDOO\DXWKRUL]HV DSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVWKDWMXGJPHQWZLOOEDU WKHLQGHILQLWHGHWHQWLRQRIH[FOXGDEOHDOLHQVKDYHXSKHOGWKH VXFFHVVLYHSHWLWLRQVLIWKHHDUOLHUSHWLWLRQSUHVHQWHGWKH VWDWXWH&DUUHUD9DOGH]Y3HUU\PDQ)GWK&LU VDPHJURXQGIRUUHOLHIWKHSULRUGHWHUPLQDWLRQZDVRQWKH &KL7KRQ1JRY,16)GG&LU PHULWVDQGUHDFKLQJWKHPHULWVRIDVXFFHVVLYHSHWLWLRQ *X]PDQY7LSS\)GG&LUSHUFXULDP ZRXOGQRWVHUYHWKHHQGVRIMXVWLFH6DQGHUVY8QLWHG6WDWHV %DUUHUD(FKDYDUULDY5LVRQ)GWK&LU 86/RQEHUJHUY0DUVKDOO)G HQEDQF*LVEHUWY8QLWHG6WDWHV$WWRUQH\*HQ)G WK&LU8QGHUWKHmHQGVRIMXVWLFHlFRPSRQHQW WK&LU6HHDOVR)HUQDQGH]5RFTXHY6PLWK RIWKLVVWDQGDUGDQDSSOLFDQWFDQILOHDVXFFHVVLYHSHWLWLRQ  )G  WK &LU  UHMHFWLQJ FRQVWLWXWLRQDO mXSRQVKRZLQJDQLQWHUYHQLQJFKDQJHLQWKHODZl6DQGHUV FKDOOHQJHVWRLQGHILQLWHGHWHQWLRQDULVLQJIURPWKHGHQLDORU 86DW6HHDOVR/RQEHUJHU)GDW UHYRFDWLRQRILPPLJUDWLRQSDUROH3DOPDY9HUGH\HQ )G  WK &LU  FRQFOXGLQJ WKDW &RQJUHVV KDG ,QOLJKWRIWKLVFRXUWjVUHFHQWGHFLVLRQLQ5RVDOHV*DUFLDY +ROODQG)GWK&LUKROGLQJWKDWLQGHILQLWH GHWHQWLRQ YLRODWHV WKH 'XH 3URFHVV &ODXVH RI WKH )LIWK  $PHQGPHQW ZH PXVW FRQVLGHU ZKHWKHU mDQ LQWHUYHQLQJ 7KH ,,5,5$ IXUWKHU DPHQGHG VHFWLRQ H DQG FUHDWHG QHZ FKDQJH LQ WKH ODZl DOORZV FRQVLGHUDWLRQ RI &DUEDOORjV VWDWXWRU\ EDVHV IRU GHWHQWLRQ RI DOLHQV EXW EHFDXVH VHFWLRQ F  RI WKH ,,5,5$ OLPLWV WKHVH DPHQGPHQWV WR UHPRYDO SURFHHGLQJV LQLWLDWHG SHWLWLRQ  )RU WKH UHDVRQV WKDW IROORZ ZH WKLQN WKDW WKH DIWHU LWV HIIHFWLYH GDWH RI $SULO   WKH\ KDYH QR HIIHFW RQ WKLV DFWLRQ 6XSUHPH&RXUWjVVXEVHTXHQWRSLQLRQLQ=DGY\GDVY'DYLV 6&WIDWDOO\XQGHUPLQHVWKHDXWKRULW\RI   86& † D  DV LQ HIIHFW SULRU WR HQDFWPHQW RI WKH 5RVDOHV*DUFLD$FFRUGLQJO\ZHFRQFOXGHWKDWHYHQXQGHU ,,5,5$ GHILQHG mDJJUDYDWHG IHORQ\l WR LQFOXGH mDQ\ FULPH RI YLROHQFH WKH6DQGHUVVWDQGDUG&DUEDOORjVSHWLWLRQLVEDUUHG DV GHILQHG LQ VHFWLRQ  RI 7LWOH  QRW LQFOXGLQJ D SXUHO\ SROLWLFDO RIIHQVH IRU ZKLFK WKH WHUP RI LPSULVRQPHQW LPSRVHG    LV DW OHDVW  7KH6WDWXWRU\%DVLVIRU&DUEDOORjV'HWHQWLRQ \HDUVl ,Q WXUQ  86& † D GHILQHV mFULPH RI YLROHQFHl DV mDQ RIIHQVH WKDW KDV DV DQ HOHPHQW WKH XVH DWWHPSWHG XVH RU WKUHDWHQHG XVH RI :HEHJLQRXU DQDO\VLVE\H[DPLQLQJZKHWKHUWKHVWDWXWH SK\VLFDO IRUFH DJDLQVW WKH SHUVRQ RU SURSHUW\ RI DQRWKHUl &DUEDOORjV HLJKW\HDU VHQWHQFHV IRU DWWHPSWHG PXUGHU DQG UREEHU\ DQG KLV ILYH\HDU SXUVXDQW WR ZKLFK WKH ,16 FRQWLQXHV WR GHWDLQ 3HWLWLRQHU VHQWHQFH IRU DJJUDYDWHG DVVDXOW VDWLVI\ WKLV GHILQLWLRQ DXWKRUL]HVLQGHILQLWHGHWHQWLRQ6HHHJ&URZHOOY%HQVRQ  &DUEDOORY/XWWUHOOHWDO 1R 1R &DUEDOORY/XWWUHOOHWDO 

86m:KHQWKHYDOLGLW\RIDQDFWRIWKH 86&†HHPSKDVLVDGGHG,QVKRUWIRUPHU &RQJUHVVLVGUDZQLQTXHVWLRQDQGHYHQLIDVHULRXVGRXEWRI VHFWLRQ H XQDPELJXRXVO\ DXWKRUL]HG WKH $WWRUQH\ FRQVWLWXWLRQDOLW\LVUDLVHGLWLVDFDUGLQDOSULQFLSOHWKDWWKLV *HQHUDOWRUHWDLQFXVWRG\RIDQH[FOXGDEOHDOLHQFRQYLFWHGRI &RXUWZLOOILUVWDVFHUWDLQZKHWKHUDFRQVWUXFWLRQRIWKHVWDWXWH DQDJJUDYDWHGIHORQ\XQOHVVKHILUVWGHWHUPLQHGERWKWKDWWKH LVIDLUO\SRVVLEOHE\ZKLFKWKHTXHVWLRQPD\EHDYRLGHGl DOLHQjVQDWLYHODQGKDVXQGXO\GHQLHGRUGHOD\HGGHSRUWDWLRQ IRRWQRWH RPLWWHG  3ULRU WR HQDFWPHQW RI WKH ,OOHJDO DQG WKDW WKH DOLHQ ZLOO QRW SRVH D GDQJHU WR WKH VDIHW\ RI ,PPLJUDWLRQ 5HIRUP DQG ,PPLJUDQW 5HVSRQVLELOLW\ $FW RI SHRSOHRUSURSHUW\  3XE / 1R   6WDW  m,,5,5$l  86&†HDXWKRUL]HGWKH$WWRUQH\*HQHUDOWRGHWDLQ &RQJUHVVHQDFWHGWKLVSURYLVLRQLQWKH,PPLJUDWLRQ$FWRI H[FOXGDEOHDOLHQVLQGHILQLWHO\7KDWVHFWLRQSURYLGHG 3XE/1R†E6WDW 7KLVVWDWXWRU\DPHQGPHQWWRRNHIIHFWRQ1RYHPEHU   3HQGLQJ D GHWHUPLQDWLRQ RI H[FOXGDELOLW\ WKH DQGGRHVQRWDSSO\UHWURDFWLYHO\1RQHWKHOHVVLWVSURYLVLRQV $WWRUQH\ *HQHUDO VKDOO WDNH LQWR FXVWRG\ DQ\ DOLHQ JRYHUQ &DUEDOORjV SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV  ,Q FRQYLFWHG RI DQ DJJUDYDWHG IHORQ\ XSRQ UHOHDVH RI WKH $OYDUH]0HQGH]Y6WRFN)GWK&LUWKH DOLHQ UHJDUGOHVV RI ZKHWKHU RU QRW VXFK UHOHDVH LV RQ FRXUW FRQVLGHUHG WKH HIIHFW RI WKH HQDFWPHQW RI VHFWLRQ SDUROHVXSHUYLVHGUHOHDVHRUSUREDWLRQDQGUHJDUGOHVVRI HRQWKHKDEHDVSHWLWLRQRID0DULHO&XEDQZKRPOLNH WKHUHDUUHVWRUIXUWKHUFRQILQHPHQWLQUHVSHFWRIWKHVDPH &DUEDOOR DQG DOO VLPLODUO\ VLWXDWHG DOLHQV WKH ,16 KDG RIIHQVH DGMXGJHG H[FOXGDEOH LQ   7KH FRXUW FRQFOXGHG WKDW VHFWLRQHJRYHUQHGSHWLWLRQVILOHGDIWHULWVHIIHFWLYHGDWH 1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQRIWKLVVHFWLRQ HYHQLQWKHFDVHRIDQDOLHQGHWHUPLQHGWREHH[FOXGDEOHSULRU WKH$WWRUQH\*HQHUDOVKDOOQRWUHOHDVHVXFKIHORQIURP WRWKDWGDWH FXVWRG\XQOHVVWKH$WWRUQH\*HQHUDOGHWHUPLQHVWKDWWKH DOLHQ PD\ QRW EH GHSRUWHG EHFDXVH >D FRXQWU\ mXSRQ $OWKRXJKWKHQHZVHFWLRQHGRHVQRWUHWURDFWLYHO\ UHTXHVWGHQLHVRUXQGXO\GHOD\VDFFHSWDQFHRIWKHUHWXUQ DXWKRUL]H DQ\ RI WKH $WWRUQH\ *HQHUDOjV DFWV RI DQ\ DOLHQ ZKR LV D FLWL]HQ    WKHUHRIl   86& DFFRPSOLVKHGSULRUWRWKHDPHQGPHQWZHDUHFRQFHUQHG †J@ KHUHRQO\ZLWKWKHOHJDOLW\RI$OYDUH]0HQGH]jVSUHVHQW GHWHQWLRQ%HFDXVHWKLVFDVHLQYROYHVDSHWLWLRQIRUWKH ,IWKHGHWHUPLQDWLRQGHVFULEHGLQSDUDJUDSKKDV ZULWRIKDEHDVFRUSXVDQGQRWDFODLPIRUGDPDJHVIRU EHHQPDGHWKH$WWRUQH\*HQHUDOPD\UHOHDVHVXFKDOLHQ LOOHJDO GHWHQWLRQ WKH RQO\ LVVXH EHIRUH XV LV ZKHWKHU RQO\DIWHUn $OYDUH]0HQGH]jVGHWHQWLRQLVLOOHJDOWRGD\7KHUHIRUH HYHQLIKLVGHWHQWLRQZDVLOOHJDOSULRUWRWKH$FWLI $DSURFHGXUHIRUUHYLHZRIHDFKUHTXHVWIRUUHOLHI WKDW$FWJLYHVWKH$WWRUQH\*HQHUDOWKHDXWKRULW\WRKROG XQGHUWKLVVXEVHFWLRQKDVEHHQHVWDEOLVKHG $OYDUH]0HQGH]WRGD\KLVSUHVHQWFXVWRG\LVQRWLOOHJDO DQGKDEHDVFRUSXVLVQRWDYDLODEOH %  VXFK SURFHGXUH LQFOXGHV FRQVLGHUDWLRQ RI WKH VHYHULW\RIWKHIHORQ\FRPPLWWHGE\WKHDOLHQDQG ,GDW6LQFHWKH1LQWK&LUFXLWRIIHUHGWKLVLQWHUSUHWDWLRQ RIIRUPHUVHFWLRQHRWKHUFLUFXLWVWKDWKDYHFRQVLGHUHG &WKHUHYLHZFRQFOXGHVWKDWWKHDOLHQZLOOQRWSRVH ZKHWKHULWJRYHUQVWKHGHWHQWLRQRIDOLHQVIRXQGH[FOXGDEOH DGDQJHUWRWKHVDIHW\RIRWKHUSHUVRQVRUWRSURSHUW\ SULRU WR LWV HQDFWPHQW KDYH FRQFOXGHG WKDW LW GRHV  +R Y *UHHQH)GWK&LU*LVEHUW