Moss v. United States

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   0RVVHWDOY 1RV (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU 8QLWHG6WDWHV )LOH 1DPH DS

BBBBBBBBBBBBBBBBB 81,7('67$7(6&28572)$33($/6 &2816(/ )257+(6,;7+&,5&8,7 $5*8('&OLIIRUGs%DUQDUG%RXOGHU&RORUDGR&DUROH BBBBBBBBBBBBBBBBB 0 6WDQ\DU 'HWURLW 0LFKLJDQ IRU $SSHOODQWV  .DWKOHHQ 0RUR1HVL$66,67$1781,7('67$7(6$77251(< 'HWURLW0LFKLJDQIRU $SSHOOHH21%5,()&OLIIRUGs 52%(57 0266 ; %DUQDUG %RXOGHU &RORUDGR &DUROH 0 6WDQ\DU 'HWURLW DQG521$/' .2+1  0LFKLJDQ IRU $SSHOODQWV  sRQDWKDQ 7XNHO $66,67$17   81,7(' 67$7(6 $77251(< 'HWURLW 0LFKLJDQ IRU  1RV $SSHOOHH 3HWLWLRQHUV$SSHOODQWV   ! BBBBBBBBBBBBBBBBB  Y  23,1,21  BBBBBBBBBBBBBBBBB 81,7(' 67$7(6 2) $0(5,&$  5HVSRQGHQW$SSHOOHH  3(7(5&(&212086'LVWULFWsXGJH  1 , 29(59,(: $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 7KHSHWLWLRQHUVDSSHOODQWV5RQDOG.RKQm.RKQlDQG 1RVn3DWULFNs'XJJDQ 5REHUW0RVVm0RVVlDSSHDOVHSDUDWHRUGHUVRIWKHGLVWULFW 'LVWULFWsXGJH FRXUWGHQ\LQJWKHLUPRWLRQVWRYDFDWHWKHLUFRQYLFWLRQVDQG VHQWHQFHV SXUVXDQW WR  86& †   2Q DSSHDO WKH $UJXHG$SULO SHWLWLRQHUV DVVHUW WKDW WKHLU MRLQW UHSUHVHQWDWLRQ E\ GHIHQVH FRXQVHOFUHDWHGDQDFWXDOFRQIOLFWRILQWHUHVWZKLFKUHQGHUHG 'HFLGHGDQG)LOHG0DUFK GHIHQVHFRXQVHOjVDVVLVWDQFHFRQVWLWXWLRQDOO\LQHIIHFWLYH7KH SHWLWLRQHUVVSHFLILFDOO\DVVHUWWKDWWKHLUmMRLQWRYHUODSSLQJ %HIRUH'$8*+75(<DQG0225(&LUFXLWsXGJHV DQG FRQWHPSRUDQHRXVl UHSUHVHQWDWLRQ SUHFOXGHG GHIHQVH (&212086'LVWULFWsXGJH FRXQVHO IURP REWDLQLQJ VHSDUDWH SOHD DJUHHPHQWV ZLWK WKH JRYHUQPHQW SDUWLFXODUO\ SOHD DJUHHPHQWV UHTXLULQJ FRRSHUDWLRQ ,QDGGLWLRQ3HWLWLRQHU.RKQDVVHUWVWKDWGHIHQVHFRXQVHO ODERUHGXQGHUDVHSDUDWHFRQIOLFWRILQWHUHVWDULVLQJIURPDQ LQYHVWLJDWLRQLQWRGHIHQVHFRXQVHOjVDOOHJHGLQWHUIHUHQFHZLWK

DJRYHUQPHQWZLWQHVV 7KH +RQRUDEOH 3HWHU & (FRQRPXV 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

$OWKRXJKZHFRQFOXGHWKDWGHIHQVHFRXQVHOjVFRQGXFWIHOO $WWRUQH\ 0XUSK\ LPPHGLDWHO\ EHJDQ WR SXUVXH VHYHUDO EHORZ WKH ERXQGDU\ RI SURIHVVLRQDO FRPSHWHQFH ZH HIIRUWVLQ0RVVjVGHIHQVH)LUVW$WWRUQH\0XUSK\LVVXHGD QHYHUWKHOHVV GHWHUPLQH WKDW WKH SHWLWLRQHUV IDLOHG WR OHWWHU WR 8QLWHG 6WDWHV $WWRUQH\ 6WHSKHQ 0DUNPDQ GHPRQVWUDWH WKDW WKH DOOHJHG FRQIOLFWV RI LQWHUHVW DGYHUVHO\ m0DUNPDQl LQGLFDWLQJ WKDW KH UHSUHVHQWHG 0RVV DQG WKDW DIIHFWHGFRXQVHOjVSHUIRUPDQFH 0DUNPDQ ZDV mIUHH WR FRQWDFW >KLP@ WR DUUDQJH IRU DQ LQWHUYLHZZLWK0U0RVVZKHUHLWVHHPVOLNHO\WKDW>0RVV@  $FFRUGLQJO\ZH$)),50WKHRUGHUVRIWKHGLVWULFWFRXUW ZLOOSURYLGHLQIRUPDWLRQl7KHOHWWHUDOVRFRPSODLQHGRIWKH DQGGHQ\WKHUHTXHVWHGUHOLHI DOOHJHGO\XQSURIHVVLRQDOWDFWLFVXWLOL]HGE\WKH8QLWHG6WDWHV 0DUVKDOjV 2IILFH DQG WKH 8QLWHG 6WDWHV &XVWRPV 6HUYLFH ,, )$&78$/+,6725< GXULQJWKHLQYHVWLJDWLRQ %HFDXVHRXULQTXLU\LQWRWKHH[LVWHQFHRIDQDFWXDOFRQIOLFW $WWRUQH\ 0XUSK\ DGGLWLRQDOO\ EHJDQ LQYHVWLJDWLQJ WKH RILQWHUHVWUHTXLUHVDQH[DPLQDWLRQRIWKHIDFWVJLYLQJULVHWR LGHQWLWLHVRIWKRVHLQGLYLGXDOVSURYLGLQJLQIRUPDWLRQDJDLQVW WKHFRQIOLFWZHEULHIO\VHWIRUWKWKHIDFWXDOSUHGLFDWHRIWKH 0RVV7KHLQYHVWLJDWLRQXQFRYHUHGDUHODWLRQVKLSEHWZHHQ FDVH 0RVVDQG(OL0RUHQRm0RUHQRlRQHRIWKHIRXULQGLYLGXDOV DUUHVWHG LQ 0DUFK   $WWRUQH\ 0XUSK\ VXEVHTXHQWO\ 7KH3UH,QGLFWPHQW3URFHHGLQJV WUDYHOHGWR$UL]RQDDQGREWDLQHGGLVFRYHU\LHWKHFRXUWILOH UHJDUGLQJ0RUHQRjVSRWHQWLDOFRRSHUDWLRQ ,Q0DUFKIHGHUDOODZHQIRUFHPHQWRIILFLDOVDUUHVWHG IRXULQGLYLGXDOVLQYROYHGLQDFRQVSLUDF\WRLPSRUWPDULMXDQD 7KH,QGLFWPHQWDQG$UUDLJQPHQW IURP0H[LFRLQWRWKH8QLWHG6WDWHV,QIRUPDWLRQREWDLQHG IURPWKHVHDUUHVWVLPSOLFDWHG0RVVDVDQLQWHJUDOPHPEHURI 1RWZLWKVWDQGLQJ$WWRUQH\0XUSK\jVHIIRUWVRQ0DUFK WKHFRQVSLUDF\ DIHGHUDOJUDQGMXU\LQWKH(DVWHUQ'LVWULFWRI0LFKLJDQ LVVXHG DQ ,QGLFWPHQW DJDLQVW LQWHU DOLD 0RVV DQG .RKQ 0RVVEHFDPHDZDUHRIWKHJRYHUQPHQWjVLQYHVWLJDWLRQDQG FKDUJLQJ HDFK ZLWK RQH FRXQW RI FRQVSLUDF\ WR LPSRUW FRQWDFWHG D IULHQG DQGFULPLQDO DWWRUQH\ 'DYLG 0RUUHDOH PDULMXDQDLQYLRODWLRQRI86&††DQGDQGRQH m$WWRUQH\ 0RUUHDOHl   $WWRUQH\ 0RUUHDOH VXEVHTXHQWO\ FRXQWRIFRQVSLUDF\WRGLVWULEXWHPDULMXDQDLQYLRODWLRQ HQOLVWHGWKHVHUYLFHVRIDPRUHH[SHULHQFHGIHGHUDOFULPLQDO 86&††DQG7KUHHGD\VODWHUODZHQIRUFHPHQW GHIHQVHDWWRUQH\7LPRWK\0XUSK\m$WWRUQH\0XUSK\l%\ RIILFHUVDUUHVWHG0RVVDQG.RKQ OHWWHUGDWHG$XJXVW$WWRUQH\0RUUHDOHDVVXUHG0RVV WKDWWKHWZRDWWRUQH\VZRXOGmEHZRUNLQJFORVHWRJHWKHUlWR $W WKH DUUDLJQPHQW $WWRUQH\ 0XUSK\ HQWHUHG DQ UHVROYHWKHPDWWHU DSSHDUDQFHRQEHKDOIRI0RVV$WWRUQH\0XUSK\DOVRHQWHUHG DQ$SSHDUDQFHRQEHKDOIRI.RKQ  47 D WKRURXJK GLVFXVVLRQ FRQFHUQLQJ WKH VFRSH DQG GHWDLOV RI WKH FRQVSLUDF\ VHH 8QLWHG 6WDWHV Y 0RVV  )G  WK &LU  DIILUPLQJ WKH SHWLWLRQHUVj FRQYLFWLRQV DQG VHQWHQFHV RQ GLUHFW DSSHDO  7KH UHFRUG \LHOGV FRQIOLFWLQJ WHVWLPRQ\ DV WR ZKHWKHU $WWRUQH\ 0XUSK\ PHW .RKQ MXVW SULRU WR WKH DUUDLJQPHQW RU ZKHWKHU WKH WZR KDG  0RVV UHFHLYHG D OHWWHU IURP WKH JRYHUQPHQW LQGLFDWLQJ WKDW KH ZDV PHW HDUOLHU :H QHHG QRW UHVROYH WKH LVVXH DV LW LV RI OLWWOH UHOHYDQFH WR WKH WKH WDUJHW RI D IHGHUDO LQYHVWLJDWLRQ XOWLPDWH UHVROXWLRQ RI WKH FDVH 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

%\OHWWHUGDWHG0DUFKWKHm$SSHDUDQFHOHWWHUl 8SRQ DUULYLQJ DW $WWRUQH\ 0XUSK\jV RIILFH $WWRUQH\ $WWRUQH\0RUUHDOHHQWHUHGDQ$SSHDUDQFHRQEHKDOIRI0RVV .DSSOHPDQ DQG sDHJHU HQFRXQWHUHG 0RVV DQG .RKQ +RZHYHU $WWRUQH\ 0XUSK\ GLG QRW ZLWKGUDZ DV 0RVVjV $WWRUQH\0XUSK\SURYLGHG$WWRUQH\.DSSOHPDQZLWKVHYHUDO FRXQVHO KXQGUHG SDJHV RI GRFXPHQWV DQG GLVFXVVHG ZLWK KLP WKH LGHQWLWLHVRISRWHQWLDOFRRSHUDWLQJZLWQHVVHV$WVRPHWLPH 7KH0DUFK0HHWLQJ GXULQJWKLVGLVFXVVLRQ0RVVDQGsDHJHUH[LWHGWKHPHHWLQJ DQGUHWUHDWHGRXWGRRUV:KLOHRXWVLGH0RVVDVNHGsDHJHUWR 2Q0DUFKLQGLFWHGFRFRQVSLUDWRU'DYLGsDHJHU RIIHUDSRWHQWLDOZLWQHVVLQH[FKDQJHIRUHLWKHU msDHJHUl DQG KLV DWWRUQH\ 5RQ .DSSOHPDQ m$WWRUQH\ IDYRUDEOHWHVWLPRQ\RUDUHIXVDOWRWHVWLI\6HHDOVR0RVV .DSSOHPDQl WUDYHOHG IURP 6RXWK 'DNRWD WR 'HWURLW )GDWsDHJHUDJUHHGWREULEHWKHSRWHQWLDOZLWQHVV 0LFKLJDQ IRU sDHJHUjV DUUDLJQPHQW  )ROORZLQJ WKH DUUDLJQPHQW$WWRUQH\.DSSOHPDQPHWZLWK$86$sDQLFHWR 7KH$SULO0HHWLQJ GLVFXVVsDHJHUjVSRWHQWLDOFRRSHUDWLRQZLWKWKHJRYHUQPHQW $WWKHFRQFOXVLRQRIWKHVHGLVFXVVLRQV$WWRUQH\.DSSOHPDQ $WWRUQH\ 0XUSK\ VXEVHTXHQWO\ GLUHFWHG FRPSODLQWV WR XQH[SHFWHGO\GLVFRYHUHG$WWRUQH\0XUSK\ZDLWLQJIRUKLP 8QLWHG6WDWHV$WWRUQH\0DUNPDQDQG$86$sDQLFHUHJDUGLQJ RXWVLGHRI$86$sDQLFHjVRIILFH$WWRUQH\0XUSK\LQYLWHG WKH ODWWHUjV SHUVLVWHQFH LQ ZLWKKROGLQJ WKH LGHQWLWLHV RI $WWRUQH\.DSSOHPDQDQGsDHJHUEDFNWRKLVRIILFHLQRUGHUWR FRRSHUDWLQJ ZLWQHVVHV  ,Q DQ HIIRUW WR DOOHYLDWH WKHVH H[FKDQJH GLVFRYHU\ SDUWLFXODUO\ LQIRUPDWLRQ UHJDUGLQJ WKH FRQFHUQV 0DUNPDQ GLUHFWHG $86$ sDQLFH WR VFKHGXOH D FRRSHUDWLRQRIWKH$UL]RQDZLWQHVVHV PHHWLQJZLWK$WWRUQH\0XUSK\ $W VRPH VWDJH GXULQJ WKDW PHHWLQJ KHOG LQ HDUO\ $SULO $WWRUQH\0XUSK\DWWHPSWHGWRSUHGLFWWKHQDPHVRI WKRVH ZLWQHVVHV WKDW KH EHOLHYHG ZHUH FRRSHUDWLQJ DJDLQVW .RKQ $86$ sDQLFH GHFOLQHG WR YHULI\ RU GHQ\ $WWRUQH\ 0XUSK\jVSUHGLFWLRQVEXWVWDWHGm

  $86$ sDQLFH KDG GHQLHG $WWRUQH\ .DSSOHPDQjV UHTXHVWV IRU 7KHUH DUH GLVFUHSDQFLHV LQ WKH UHFRUG DV WR WKH H[DFW GDWH RI WKH LQIRUPDWLRQ UHJDUGLQJ WKH LGHQWLW\ RI ZLWQHVVHV FRRSHUDWLQJ ZLWK WKH PHHWLQJ KRZHYHU LW LV XQGLVSXWHG WKDW WKH PHHWLQJ RFFXUUHG EHWZHHQ JRYHUQPHQW $SULO     1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

7KH6XSHUFHGLQJ,QGLFWPHQWV PRQWKVHQWHQFHVRQ0RVV 0RVVDQG.RKQDSSHDOHGWKHLU FRQYLFWLRQVDQGVHQWHQFHVDQGWKLV&RXUWDIILUPHG6HH0RVV 6HYHUDOZHHNVODWHURQ$SULOsDHJHUHQWHUHGLQWR )G DQ DJUHHPHQW ZLWK WKH JRYHUQPHQW ZKHUHE\ KH DJUHHG WR FRRSHUDWHDJDLQVW.RKQDQG0RVVLQH[FKDQJHIRUDVHQWHQFH 0RVVDQG.RKQWKHUHDIWHUILOHGVHSDUDWHPRWLRQVWRYDFDWH RIWKLUW\VL[PRQWKVLQSULVRQ2Q$SULOWKH FRUUHFW RU VHW DVLGH WKHLU VHQWHQFHV SXUVXDQW WR  86& JUDQG MXU\ LVVXHG D 6XSHUFHGLQJ ,QGLFWPHQW FRQWDLQLQJ †,QVDLGPRWLRQV0RVVDQG.RKQDOOHJHGLQWHUDOLD DGGLWLRQDOGHIHQGDQWVDQGDGGLQJFULPLQDOIRUIHLWXUHFKDUJHV WKDW WKH\ KDG UHFHLYHG LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DJDLQVW0RVVDQG.RKQ EHFDXVHGHIHQVHFRXQVHOIDLOHGWRDGYLVHWKHPRIDSOHD RIIHU H[WHQGHG E\ WKH JRYHUQPHQW  GHIHQVH FRXQVHO 2Q$XJXVWWKHJRYHUQPHQWREWDLQHGD6HFRQG SURYLGHGPLVOHDGLQJDGYLFHUHJDUGLQJVHQWHQFLQJH[SRVXUH 6XSHUFHGLQJ ,QGLFWPHQW EDVHG LQ SDUW RQ sDHJHUjV DQGFRQIOLFWVRILQWHUHVWDURVHIURP$WWRUQH\0XUSK\jV FRRSHUDWLRQ  7KH 6HFRQG 6XSHUFHGLQJ ,QGLFWPHQW FKDUJHG MRLQW UHSUHVHQWDWLRQ RI WKHLU GHIHQVH DV ZHOO DV IURP WKH 0RVVZLWKFRQWLQXLQJWRDFWLQIXUWKHUDQFHRIWKHFRQVSLUDF\ LQYHVWLJDWLRQLQWR$WWRUQH\0XUSK\jVUROHLQWKHVROLFLWDWLRQ E\VROLFLWLQJsDHJHUWREULEHDSRWHQWLDOJRYHUQPHQWZLWQHVV RIsDHJHU,G 7KH6HFRQG6XSHUFHGLQJ,QGLFWPHQWDGGLWLRQDOO\LQFUHDVHG WKHTXDQWLW\RIPDULMXDQDLQYROYHGLQWKHFRQVSLUDF\IURPWKH 2QsXQHWKHGLVWULFWFRXUWGHQLHGWKHSHWLWLRQV ILIW\NLORJUDPVDOOHJHGLQWKHRULJLQDO,QGLFWPHQWWRRYHU .RKQY8QLWHG6WDWHV1R&9'786'LVW NLORJUDPV /(;,6  (' 0LFK sXQH    0RVV WLPHO\ DSSHDOHG WKH GHQLDO WR WKLV &RXUW DQG WKH GLVWULFW FRXUW 7KH3URFHHGLQJV%HORZ JUDQWHGD&HUWLILFDWHRI$SSHDODELOLW\WR0RVVRQWKHmLVVXHRI WKHGHQLDORIHIIHFWLYHDVVLVWDQFHRIFRXQVHODWWKHSOHDVWDJHl $ MXU\ WULDO FRPPHQFHG LQ WKH GLVWULFW FRXUW RQ 6HSWHPEHU$WWRUQH\0XUSK\UHSUHVHQWHG.RKQDQG .RKQPHDQZKLOHILOHGDPRWLRQWRDOWHURUDPHQGMXGJPHQW $WWRUQH\ 0RUUHDOH UHSUHVHQWHG 0RVV  7KLUWHHQ GD\V RI SXUVXDQW WR 5XOH  H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

WKHVHQWHQFLQJKHDULQJWKHGLVWULFWMXGJHLPSRVHGFRQFXUUHQW REVWUXFWLRQ RI MXVWLFH LQ UHODWLRQ WR WKH VROLFLWDWLRQ RI sDHJHU  )G

PRQWK VHQWHQFHV RQ .RKQ DV ZHOO DV FRQFXUUHQW  

 7KH WULDO MXGJH +RQ +RUDFH : *LOPRUH UHWLUHG SULRU WR UHQGHULQJ D GHWHUPLQDWLRQ RQ WKH PRWLRQ 7KH FDVHV WKHUHDIWHU ZHUH WUDQVIHUUHG WR  WKH GRFNHW RI WKH +RQ 3DWULFN s 'XJJDQ ZKR GHQLHG WKH UHTXHVWHG UHOLHI 7KH GLVWULFW FRXUW LQLWLDOO\ VHQWHQFHG sDHJHU WR D  PRQWK SHULRG RI LQFDUFHUDWLRQ ,Q DFFRUGDQFH ZLWK WKH SOHD DJUHHPHQW WKH JRYHUQPHQW  ILOHG D PRWLRQ WR UHGXFH sDHJHUjV VHQWHQFH SXUVXDQW WR ) (' 5 &5,0 3  0RVV DOVR ILOHG D PRWLRQ SXUVXDQW WR 5XOH  E  RI WKH )HGHUDO DQG WKH GLVWULFW FRXUW XOWLPDWHO\ UHGXFHG sDHJHUjV VHQWHQFH WR WKLUW\VL[ 5XOHV RI &LYLO 3URFHGXUH RQ WKH VDPH GD\ WKDW KH ILOHG WKH 1RWLFH RI PRQWKV $SSHDO 7KH GLVWULFW FRXUW GHQLHG WKH PRWLRQ RQ 6HSWHPEHU   1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

3URFHGXUH7KHGLVWULFWFRXUWGHQLHG.RKQjVPRWLRQH[FHSWWR >(@YHQLIWKH>F@RXUWZHUHWRDVVXPHWKDWVXFKLQFRUUHFW JUDQWDQHYLGHQWLDU\KHDULQJmZLWKUHVSHFWWR>WKH@FODLPRI DGYLFH ZDV JLYHQ DQG WKDW VXFK DGYLFH FRQVWLWXWHG LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DW WKH SOHD VWDJHl  7KLV GHILFLHQW SHUIRUPDQFH    WKH >S@HWLWLRQHU>V@ ZHUH QRW &RXUW UHPDQGHG 0RVVjV FDVH WR WKH GLVWULFW FRXUW IRU D SUHMXGLFHG E\ VXFK DGYLFH    >'HIHQVH FRXQVHOjV@ FRQVROLGDWHGHYLGHQWLDU\KHDULQJ DOOHJHGO\ LQFRUUHFW DGYLFH FRXOG QRW KDYH LQIOXHQFHG >S@HWLWLRQHU>Vj@GHFLVLRQWRDFFHSWDSOHDRIIHUEHFDXVHDV 3ULRU WR WKH HYLGHQWLDU\ KHDULQJ 0RVV DQG .RKQ VRXJKW WKH&RXUWKDVDOUHDG\LQGLFDWHGWKHUHZDVQHYHUDQ\SOHD OHDYH WR DPHQG WKHLU SHWLWLRQV LQ OLJKW RI$SSUHQGL Y 1HZ RIIHUWRDFFHSW sHUVH\867KHGLVWULFWFRXUWGHQLHGWKH PRWLRQVUHDVRQLQJWKDWm>E@HFDXVH$SSUHQGLGRHVQRWDSSO\ 7KH GLVWULFW FRXUW DOVR UHMHFWHG WKH SHWLWLRQHUVj FODLPV UHWURDFWLYHO\WRFDVHVRQFROODWHUDOUHYLHZWKH FODLPV UHJDUGLQJ WKH IDLOXUH RI GHIHQVH FRXQVHO WR LQLWLDWH SOHD 3HWLWLRQHUV VHHN WR DVVHUW E\ DPHQGPHQW DUH IXWLOH DQG QHJRWLDWLRQVGHWHUPLQLQJmWKHUHLVQRFRQVWLWXWLRQDOULJKWWR WKHUHIRUH 3HWLWLRQHUVjPRWLRQVIRUOHDYHWRDPHQGVKDOOEH SOHD EDUJDLQl  7KH GLVWULFW FRXUW UHDVRQHG WKDW GHIHQVH GHQLHGl FRXQVHOjVDOOHJHGIDLOXUHWRSXUVXHSOHDQHJRWLDWLRQVGHULYHG IURPWKHSHWLWLRQHUVjSURWHVWDWLRQVRILQQRFHQFHDVZHOODVWKH 7KHGLVWULFWFRXUWKHOGDWKUHHGD\HYLGHQWLDU\KHDULQJLQ SHWLWLRQHUVjXQZLOOLQJQHVVWRFRRSHUDWHDJDLQVWHDFKRWKHU sDQXDU\  GXULQJ ZKLFK WKH SHWLWLRQHUV SUHVHQWHG WHVWLPRQ\LQVXSSRUWRIWKHLUDOOHJDWLRQVUHJDUGLQJFRXQVHOjV 1HYHUWKHOHVV WKH GLVWULFW FRXUW DFNQRZOHGJHG WKDW WKH GHILFLHQW SHUIRUPDQFH GXULQJ WKH SOHD VWDJH DV ZHOO DV SHWLWLRQHUVFRXOGVXFFHHGRQDFRQIOLFWRILQWHUHVWFODLPVR $WWRUQH\0XUSK\jVFRQIOLFWRILQWHUHVW$IWHUFRQVLGHUDWLRQRI ORQJDVDFRQIOLFWRILQWHUHVWSUHYHQWHGGHIHQVHFRXQVHOIURP WKHHYLGHQFHWKHGLVWULFWFRXUWLVVXHGWKRURXJKRUGHUVGHQ\LQJ H[SORULQJSOHDQHJRWLDWLRQV7KHGLVWULFWFRXUWH[DPLQHGWKH WKHSHWLWLRQHUVjFODLPV SHWLWLRQHUVjDOOHJDWLRQVRIDFRQIOLFWRILQWHUHVWDULVLQJIURP MRLQWUHSUHVHQWDWLRQDQGGHWHUPLQHGWKDWWKHSHWLWLRQHUVmIDLOHG ,Q GHQ\LQJ WKH FODLPV WKH GLVWULFW FRXUW GHWHUPLQHG WKDW WRSHUVXDGHWKH>F@RXUWWKDWGXDOUHSUHVHQWDWLRQH[LVWHGLQWKLV EHFDXVHWKHJRYHUQPHQWKDGQRWH[WHQGHGDSOHDRIIHUWRWKH FDVHlEHFDXVHmLWZDVQHYHU>$WWRUQH\0XUSK\jV@LQWHQWLRQWR SHWLWLRQHUVGHIHQVHFRXQVHOm>FRXOGQRW@EHVDLGWRKDYHEHHQ UHSUHVHQW >0RVV@ GXULQJ WULDO DV >0RVV@ ZDV $WWRUQH\ LQHIIHFWLYHIRUIDLOLQJWRDGYLVHWKHSHWLWLRQHU>V@RIDSOHDRIIHU 0RUUHDOHjVFOLHQWl WKDWGLGQRWH[LVWl7KHGLVWULFWFRXUWVLPLODUO\UHMHFWHGWKH SHWLWLRQHUVj FODLPV UHJDUGLQJ WKH DOOHJHGO\ HUURQHRXV 7KHGLVWULFWFRXUWXQFRYHUHGKRZHYHUDVHSDUDWHSRWHQWLDO VHQWHQFLQJDGYLFHUHDVRQLQJ FRQIOLFWRILQWHUHVWDULVLQJIURP0RVVjVSD\PHQWRI.RKQjV OHJDOIHHV7KHGLVWULFWFRXUWREVHUYHGmVRPHLIQRWDOORIWKH IXQGV IRU UHSUHVHQWLQJ >.RKQ@ FDPH IURP FRGHIHQGDQW 0RVVl7KHGLVWULFWFRXUWXOWLPDWHO\FRQFOXGHGWKDWWKHIHH  DUUDQJHPHQWGLGQRWDGYHUVHO\DIIHFWWKHSHWLWLRQHUVjGHIHQVH 0RVV ILOHG D /LPLWHG 0RWLRQ RI 5HPDQG LQ WKLV &RXUW VHHNLQJ WR EHFDXVHmWKH>SHWLWLRQHUV@ZRXOGQRWKDYHHQWHUWDLQHGWKHLGHD FRQVROLGDWH KLV DFWLRQ ZLWK WKH HYLGHQWLDU\ KHDULQJ UHODWLQJ WR .RKQjV RI SOHDGLQJ DQG WHVWLI\LQJ DJDLQVW WKH FRGHIHQGDQW    FODLPV 7KLV &RXUW GHQLHG 0RVVjV UHTXHVW mZLWKRXW SUHMXGLFH WR LWV UHVXEPLVVLRQ LQ WKH HYHQW WKH GLVWULFW FRXUW FHUWLILHV WKDW LW LV LQFOLQHG WR >WKHUHIRUH@DQ\FKRLFHE\$WWRUQH\0XUSK\WRIRUJRLQLWLDWLQJ JUDQW D MRLQW KHDULQJl 7KH GLVWULFW FRXUW VXEVHTXHQWO\ FHUWLILHG LWV SOHD QHJRWLDWLRQV ZDV QRW KDUPIXO WR WKH >SHWLWLRQHUV@l LQFOLQDWLRQ WR JUDQW D MRLQW HYLGHQWLDU\ KHDULQJ DQG WKLV &RXUW UHPDQGHG WKH PDWWHU 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

&RQVHTXHQWO\ WKH GLVWULFW FRXUW UHMHFWHG WKH SHWLWLRQHUVj HUURU RI FRQVWLWXWLRQDO PDJQLWXGH  D VHQWHQFH LPSRVHG FRQIOLFWRILQWHUHVWFODLPV RXWVLGHWKHVWDWXWRU\OLPLWVRUDQHUURURIIDFWRUODZWKDW ZDV VR IXQGDPHQWDO DV WR UHQGHU WKH HQWLUH SURFHHGLQJ .RKQLPPHGLDWHO\DSSHDOHGWKHGLVWULFWFRXUWjVGHQLDODQG LQYDOLGl:HLQEHUJHUY8QLWHG6WDWHV)GWK WKH GLVWULFW FRXUW JUDQWHG D &HUWLILFDWH RI $SSHDODELOLW\ &LU 0RVV VXEVHTXHQWO\ UHILOHG KLV 1RWLFH RI $SSHDO DV WR WKH mLVVXHRIWKHGHQLDORIHIIHFWLYHDVVLVWDQFHRIFRXQVHODWWKH 7KHUROHRIWKHDSSHOODWHFRXUWRQKDEHDVUHYLHZmLVQRWWR SOHDVWDJHl VSHFXODWHlEXWmWRGHIHUWRWKH'LVWULFW&RXUWjVIDFWXDOILQGLQJV XQOHVV >WKH DSSHOODWH FRXUW@ FDQ FRQFOXGH WKH\ DUH FOHDUO\ ,,, 67$1'$5'2)5(9,(: HUURQHRXVl  0LFNHQV Y 7D\ORU  86   6 &W    / (G G  .HQQHG\ s 7LWOHRIWKH8QLWHG6WDWHV&RGHVHFWLRQSURYLGHV FRQFXUULQJFLWLQJ/DFNDZDQQD&RXQW\'LVWULFW$WWRUQH\Y LQUHOHYDQWSDUW &RVV86 7KLV&RXUWHPSOR\VDGHQRYR UHYLHZRIDGLVWULFWFRXUWjVGHQLDORIDVHFWLRQPRWLRQ $ SULVRQHU LQ FXVWRG\ XQGHU VHQWHQFH RI D FRXUW ZKLOHH[DPLQLQJWKHGLVWULFWFRXUWjVIDFWXDOILQGLQJVIRUFOHDU HVWDEOLVKHGE\$FWRI&RQJUHVVFODLPLQJWKHULJKWWREH HUURU*DOOY8QLWHG6WDWHV)GWK&LU UHOHDVHGXSRQWKHJURXQGWKDWWKHVHQWHQFHZDVLPSRVHG mµ&OHDUHUURUjRFFXUVRQO\ZKHQZHDUHOHIWZLWKWKHGHILQLWH LQ YLRODWLRQ RI WKH &RQVWLWXWLRQ RU ODZV RI WKH 8QLWHG DQGILUPFRQYLFWLRQWKDWDPLVWDNHKDVEHHQFRPPLWWHG,I 6WDWHV RU WKDW WKH FRXUW ZDV ZLWKRXW MXULVGLFWLRQ WR WKHUH DUH WZR SHUPLVVLEOH YLHZV RI WKH HYLGHQFH WKH LPSRVHVXFKVHQWHQFHRUWKDWWKHVHQWHQFHZDVLQH[FHVV IDFWILQGHUjV FKRLFH EHWZHHQ WKHP FDQQRW EH FOHDUO\ RI WKH PD[LPXP DXWKRUL]HG E\ ODZ RU LV RWKHUZLVH HUURQHRXVl8QLWHG6WDWHVY.HOODPV)GWK VXEMHFWWRFROODWHUDODWWDFNPD\PRYHWKHFRXUWZKLFK &LUFLWLQJ$QGHUVRQY%HVVHPHU&LW\86 LPSRVHGWKHVHQWHQFHWRYDFDWHVHWDVLGHRUFRUUHFWWKH   VHQWHQFH ,9 $1$/<6,6 86&†,QRUGHUWRSUHYDLOXSRQDVHFWLRQ PRWLRQWKHSHWLWLRQHUVmPXVWDOOHJHRQHRIWKUHHEDVHVDQ $ &RQIOLFWRI,QWHUHVW 7KH6L[WK$PHQGPHQWSURYLGHVWKDWDFULPLQDOGHIHQGDQW  VKDOO KDYH WKH ULJKW WR mWKH $VVLVWDQFH RI FRXQVHO IRU KLV 7KH GLVWULFW FRXUW JUDQWHG WKH &HUWLILFDWH RI $SSHDODELOLW\ DV WR ILYH GHIHQFHl86& $%DPHQG9,7KH6L[WK$PHQGPHQW LVVXHV  ZKHWKHU .RKQ ZDV GHQLHG WKH HIIHFWLYH DVVLVWDQFH RI FRXQVHO LQ WKH SOHD VWDJH RI WKH SURFHHGLQJV DV D UHVXOW RI $WWRUQH\ 0XUSK\jV DIIRUGVWKLVULJKWEHFDXVHRIWKHHIIHFW WKDWVXFKDVVLVWDQFH mHDUOLHU RQJRLQJ DQG VLPXOWDQHRXV UHSUHVHQWDWLRQ RI D FRGHIHQGDQW LQ mKDV RQ WKH DELOLW\ RI WKH DFFXVHG WR UHFHLYH D IDLU WULDOl WKH VDPH LQGLFWPHQWl ZKHWKHU .RKQ VKRXOG KDYH EHHQ SHUPLWWHG WR 8QLWHG6WDWHVY&URQLF86'HULYDWLYH DPHQG KLV SHWLWLRQ LQ OLJKW RI $SSUHQGL  ZKHWKHU .RKQ ZDV GHQLHG RIWKHULJKWWRFRXQVHOXQGHUWKH6L[WK$PHQGPHQWLVWKHULJKW HIIHFWLYH DVVLVWDQFH RI FRXQVHO DW WULDO GXH WR FRXQVHOjV mSULRU DQG WRKDYHFRXQVHOSURYLGHHIIHFWLYHDVVLVWDQFHVHH0F0DQQY FRQWHPSRUDQHRXV UHSUHVHQWDWLRQ RI D FRGHIHQGDQW DQG DOVR GXH WR GHIHQVH FRXQVHOjV EHOLHI DQG IHDU GXULQJ WULDO WKDW KH ZDV EHLQJ 5LFKDUGVRQ86QDQGmDVVLVWDQFH LQYHVWLJDWHG LQ D VFKHPH WR EULEH D ZLWQHVVl ZKHWKHU .RKQ ZDV GHQLHG ZKLFKLVLQHIIHFWLYHLQSUHVHUYLQJIDLUQHVVGRHVQRWPHHWWKH HIIHFWLYH DVVLVWDQFH RI FRXQVHO DW VHQWHQFLQJ DQG  ZKHWKHU .RKQ ZDV GHQLHG WKH HIIHFWLYH DVVLVWDQFH RI FRXQVHO RQ DSSHDO 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

FRQVWLWXWLRQDOPDQGDWHl0LFNHQV6&WDWFLWLQJ H[DPLQLQJZLWKDSSURYDO+ROORZD\Y$UNDQVDV86 6WULFNODQGY:DVKLQJWRQ86     &X\OHU Y 6XOOLYDQ  86   DQG:RRGY*HRUJLD86 ,QGHHG $V D JHQHUDO PDWWHU D GHIHQGDQW DOOHJLQJ LQHIIHFWLYH ZKHUH WKH GHIHQGDQW RU KLV FRXQVHO REMHFWV WR WKH FRQIOLFW DVVLVWDQFH RI FRXQVHO PXVW GHPRQVWUDWH mD UHDVRQDEOH SULRUWRRUGXULQJWULDOWKHWULDOFRXUWPXVWLQTXLUHDVWRWKH SUREDELOLW\WKDWEXWIRUFRXQVHOjVXQSURIHVVLRQDOHUURUVWKH H[WHQWRIWKHFRQIOLFWRUVXEMHFWDQ\VXEVHTXHQWFRQYLFWLRQWR UHVXOW RI WKH SURFHHGLQJV ZRXOG KDYH EHHQ GLIIHUHQWl DXWRPDWLFUHYHUVDO+ROORZD\86DW6HHDOVR 6WULFNODQG86DWm$UHDVRQDEOHSUREDELOLW\LVD 5LJJVY8QLWHG6WDWHV)GQWK&LU SUREDELOLW\ VXIILFLHQW WR XQGHUPLQH FRQILGHQFH LQ WKH ,QWKHDEVHQFHRIDQREMHFWLRQKRZHYHUDVKRZLQJRIDQ RXWFRPHl,G6HHDOVR%HOOY&RQH866&W DFWXDO FRQIOLFW DQG  DQ DGYHUVH HIIHFW RQ KLV FRXQVHOjV    / (G G   m:LWKRXW SURRI RI SHUIRUPDQFHZLOOYRLGWKHFRQYLFWLRQ0LFNHQV6&WDW ERWK GHILFLHQW SHUIRUPDQFH DQG SUHMXGLFH WR WKH GHIHQVH  >XQGHU6WULFNODQG@LWFRXOGQRWEHVDLGWKDWWKHVHQWHQFHRU FRQYLFWLRQ UHVXOWHG IURP D EUHDNGRZQ LQ WKH DGYHUVDU\  sRLQWUHSUHVHQWDWLRQ SURFHVVWKDWUHQGHUHGWKHUHVXOWRIWKHSURFHHGLQJXQUHOLDEOH DQG WKH VHQWHQFH RU FRQYLFWLRQ VKRXOG VWDQGl ,QWHUQDO 2Q DSSHDO WKH SHWLWLRQHUV DVVHUW WKDW WKHLU  mMRLQW TXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG RYHUODSSLQJ DQG FRQWHPSRUDQHRXVl DWWRUQH\FOLHQW UHODWLRQVKLSVZLWK$WWRUQH\0XUSK\FUHDWHGDQDFWXDOFRQIOLFW ,Q FHUWDLQ 6L[WK $PHQGPHQW FRQWH[WV WKH FRXUW ZLOO RILQWHUHVWWKDWUHQGHUHG$WWRUQH\0XUSK\XQDEOHWRH[SORUH GLVFKDUJH WKH GHIHQGDQWjV 6WULFNODQG REOLJDWLRQ WR SRVVLEOHSOHDRSSRUWXQLWLHVZLWK$86$sDQLFHsRLQWRUGXDO GHPRQVWUDWH D SUREDEOH HIIHFW RQ WKH RXWFRPH DQG LQVWHDG UHSUHVHQWDWLRQRFFXUVZKHUHDVLQJOHDWWRUQH\UHSUHVHQWVWZR SUHVXPH VXFK SUHMXGLFH  0LFNHQV  6 &W DW  RUPRUHFRGHIHQGDQWVLQWKHVDPHSURFHHGLQJ6HH%XUJHU FLWLQJ&URQLF86DW*HGHUVY8QLWHG6WDWHV Y.HPS86TXRWLQJ+ROORZD\ 86*LGHRQY:DLQZULJKW86 86 DW   :KLOH MRLQW UHSUHVHQWDWLRQ RI FRGHIHQGDQWV     7KLV SUHVXPSWLRQ RI SUHMXGLFH DULVHV LQ GRHVQRWSHUVHFRQVWLWXWHLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO FLUFXPVWDQFHVZKHUHWKHUHH[LVWVDmFRPSOHWHGHQLDORI VHH7KRPDVY)ROW])GWK&LUWKH FRXQVHOl RU D GHQLDO RI FRXQVHO mDW D FULWLFDO VWDJHl RI WKH 6XSUHPH &RXUW UHSHDWHGO\ KDV FDXWLRQHG DJDLQVW mWKH KLJK GHIHQGDQWjV WULDO  GHIHQVH FRXQVHO IDLOV WR mVXEMHFW WKH SUREDELOLW\ RI SUHMXGLFH DULVLQJ IURP PXOWLSOH FRQFXUUHQW SURVHFXWLRQjV FDVH WR PHDQLQJIXO DGYHUVDULDO WHVWLQJl RU UHSUHVHQWDWLRQ DQG WKH GDQJHU RI SURYLQJ WKDW SUHMXGLFHl  FRXQVHO mLV FDOOHG XSRQ WR UHQGHU DVVLVWDQFH ZKHUH 0LFNHQV6&WDW FRPSHWHQWFRXQVHOYHU\OLNHO\FRXOGQRWl&URQLF86 DWLQWHUQDOFLWDWLRQVRPLWWHG,WLVLQWKHSUHVHQFHRI WKHVH mFLUFXPVWDQFHV RI PDJQLWXGHl ZKHUH mWKH OLNHOLKRRG  WKDW WKH YHUGLFW LV XQUHOLDEOH LV VR KLJK WKDW D FDVHE\FDVH 7KH FRXUWV LQWHUFKDQJHDEO\ XWLOL]H WKH WHUPV mMRLQW UHSUHVHQWDWLRQl LQTXLU\LVXQQHFHVVDU\l0LFNHQV6&WDW mGXDO UHSUHVHQWDWLRQl DQG mPXOWLSOH UHSUHVHQWDWLRQl WR LQGLFDWH WKH VLPXOWDQHRXV UHSUHVHQWDWLRQ RI WZR RU PRUH FRGHIHQGDQWV E\ VLQJOH DWWRUQH\ +RZHYHU MRLQW DQG GXDO UHSUHVHQWDWLRQ UHIHU WR VLPXOWDQHRXV 7KH SUHVXPSWLRQ RI SUHMXGLFH DOVR DULVHV ZKHUH WKH UHSUHVHQWDWLRQ RFFXUULQJ LQ WKH VDPH SURFHHGLQJ ZKLOH PXOWLSOH GHIHQGDQWGHPRQVWUDWHVWKDWKLVDWWRUQH\DFWLYHO\UHSUHVHQWHG UHSUHVHQWDWLRQ UHIHUV WR VLPXOWDQHRXV UHSUHVHQWDWLRQ LQ VHSDUDWH FRQIOLFWHG LQWHUHVWV  0LFNHQV  6 &W DW  SURFHHGLQJV 6HH JHQHUDOO\ 'XQFDQ Y 0RUWRQ  )G  G &LU  1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

sRLQW UHSUHVHQWDWLRQ RI FRQIOLFWLQJ LQWHUHVWV LV VXVSHFW 6RPHWLPHVKRUWO\WKHUHDIWHULWZDVGHILQLWHO\VHWWOHGWKDW EHFDXVH RI ZKDW LW WHQGV WR SUHYHQW WKH DWWRUQH\ IURP $WWRUQH\ 0XUSK\ ZRXOG UHSUHVHQW .RKQ DQG $WWRUQH\ GRLQJWKHHYLOLWEHDUVUHSHDWLQJLVLQZKDWWKH 0RUUHDOHZRXOGUHSUHVHQW>0RVV@ DGYRFDWHILQGVKLPVHOIFRPSHOOHGWRUHIUDLQIURPGRLQJ QRW RQO\ DW WULDO EXW DOVR DV WR SRVVLEOH SUHWULDO SOHD 7KHUHFRUGVXSSRUWVWKHGLVWULFWFRXUWjVFRQFOXVLRQDVWRWKH QHJRWLDWLRQVDQGLQWKHVHQWHQFLQJSURFHVV7KHPHUH DEVHQFHRIMRLQWUHSUHVHQWDWLRQ7KHUHFRUGLQGLFDWHVWKDWLW SK\VLFDOSUHVHQFHRIDQDWWRUQH\GRHVQRWIXOILOOWKH6L[WK ZDV GHIHQVH FRXQVHOjV JHQHUDO SUDFWLFH WR UHIUDLQ IURP $PHQGPHQWJXDUDQWHHZKHQWKHDGYRFDWHjVFRQIOLFWLQJ UHSUHVHQWLQJFRGHIHQGDQWV,QDFFRUGDQFHZLWKWKLVSUDFWLFH REOLJDWLRQV KDYH HIIHFWLYHO\ VHDOHG KLV OLSV RQ FUXFLDO $WWRUQH\V 0RUUHDOH DQG 0XUSK\ UHDFKHG DQ DJUHHPHQW PDWWHUV ZKHUHE\ $WWRUQH\ 0RUUHDOH ZRXOG UHSUHVHQW 0RVV DQG $WWRUQH\0XUSK\ZRXOGUHSUHVHQW.RKQ$WWRUQH\0XUSK\ +ROORZD\86DW WHVWLILHG ,W LV DSRGLFWLF WKDW WKH 6L[WK $PHQGPHQWjV JXDUDQWHH RI ,WZDVDOZD\VFOHDUWRPHWKDW0U0RUUHDOHLQWHQGHGWR HIIHFWLYH DVVLVWDQFH RI FRXQVHO HQFRPSDVVHV WKH DWWRUQH\jV UHSUHVHQW0U0RVV,GRQjWNQRZZK\DVZHVLWKHUH REOLJDWLRQ WR DYRLG FRQIOLFWV RI LQWHUHVW DULVLQJ IURP MRLQW WRGD\,GRQjWNQRZZK\,ILOHGWKDWDSSHDUDQFHEHFDXVH UHSUHVHQWDWLRQGXULQJWKHSOHDVWDJHRIWKHSURFHHGLQJV6HH LW ZDV QHYHU P\ LQWHQWLRQ WR HYHU UHSUHVHQW >0RVV@ DW +ROORZD\  86 DW  m>,@Q WKLV FDVH >D FRQIOLFW RI WULDO>0RVV@ZDV0U0RUUHDOHjVFOLHQWDQGLWZDVFOHDU LQWHUHVW@PD\ZHOOKDYHSUHFOXGHGGHIHQVHFRXQVHOIURP WR PH  ,W PD\ KDYH EHHQ  , GRQjW NQRZ ZK\ 0U H[SORULQJSRVVLEOHSOHDQHJRWLDWLRQVDQGWKHSRVVLELOLW\RIDQ 0RUUHDOHGLGQjWILOHWKHDSSHDUDQFHEXW,QHYHULQWHQGHG DJUHHPHQW WR WHVWLI\ IRU WKH SURVHFXWLRQ SURYLGHG D OHVVHU WRUHSUHVHQW>0RVV@DWWULDO FKDUJHRUDIDYRUDEOHVHQWHQFLQJUHFRPPHQGDWLRQZRXOGEH DFFHSWDEOHl7KLV&RXUWKDVKHOGWKDWDQDWWRUQH\SURYLGHV $WWRUQH\0XUSK\IXUWKHUWHVWLILHG LQHIIHFWLYHDVVLVWDQFHZKHUHMRLQWUHSUHVHQWDWLRQFRPSHOVWKH DWWRUQH\WRIRUJRSOHDQHJRWLDWLRQVRQRQHFOLHQWjVEHKDOI6HH >0RVV@GRHVQjWZDQWPH+HZDQWV0U0RUUHDOH0U 8QLWHG 6WDWHV Y +DOO  )G   WK &LU  0RUUHDOHLVDODZ\HUZKRKHWUXVWVZKRKHKDVGHDOWZLWK m)RUHJRLQJSOHDQHJRWLDWLRQVLVSURRIRIDQDFWXDOFRQIOLFWRI EHIRUHZKREURXJKWKLPLQDQGKHGRHVQjWZDQWPH LQWHUHVWl&LWDWLRQRPLWWHG  0U 0RUUHDOH ZDV D YHU\ VXFFHVVIXO ODZ\HU D YHU\ $VGLVFXVVHGVXSUDWKHGLVWULFWFRXUWH[SOLFLWO\UHMHFWHGWKH VXFFHVVIXOIHGHUDOODZ\HUDQGLWZDVQjWDVHFUHWWRPDQ\ SHWLWLRQHUVjDVVHUWLRQVWKDW$WWRUQH\0XUSK\HQJDJHGLQMRLQW RIKLVFOLHQWV$UH\RXDVNLQJPHZKHWKHU,ZRXOGKDYH UHSUHVHQWDWLRQ7KHGLVWULFWFRXUWVSHFLILFDOO\GHWHUPLQHG SUHIHUUHGWRUHSUHVHQW0U0RVV"7KHDQVZHUZRXOGEH \HVEXW0U0RVVZDV0U0RUUHDOHjVFOLHQW $WWRUQH\0XUSK\WHVWLILHGWKDWLWZDVQHYHUKLVLQWHQWLRQ WRUHSUHVHQW>0RVV@GXULQJWULDODV>0RVV@ZDV$WWRUQH\ :KLOHWKHUHFRUGODFNVWKHSUHFLVHPRPHQWZKHQGHIHQVH 0RUUHDOHjVFOLHQW$WWRUQH\0RUUHDOHDOVRWHVWLILHGWKDW FRXQVHO DJUHHG WR SURYLGH 0RVV DQG .RKQ ZLWK VHSDUDWH $WWRUQH\ 0XUSK\ HQWHUHG DQ DSSHDUDQFH RQ EHKDOI RI UHSUHVHQWDWLRQ WKH DJUHHPHQW ZDV DSSDUHQW WR RWKHU >0RVV@ DW WKH DUUDLJQPHQW RQO\ EHFDXVH $WWRUQH\ LQGLYLGXDOVLQYROYHGLQWKHHDUOLHVWVWDJHVRIWKHSURFHHGLQJV 0RUUHDOH ZDV XQDEOH WR DWWHQG WKH DUUDLJQPHQW )RULQVWDQFH$WWRUQH\.DSSOHPDQWHVWLILHGWKDWKHZDVDZDUH 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

GXULQJWKH0DUFKPHHWLQJWKDW$WWRUQH\0RUUHDOH 7KH GLVWULFW FRXUW UHQGHUHG WKLV GHWHUPLQDWLRQ DIWHU UHSUHVHQWHG0RVV$86$s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sDQLFHQRUWKHWULDOMXGJHH[SUHVVHGDQ\FRQFHUQRYHU WKH GLVWULFW FRXUWjV IDFWXDO ILQGLQJV SDUWLFXODUO\ WKHSHWLWLRQHUVjVHSDUDWHUHSUHVHQWDWLRQ GHWHUPLQDWLRQV UHJDUGLQJ ZLWQHVV FUHGLELOLW\ DEVHQW FOHDU HUURU6HH%XUJHU86DWm7KHGLVWULFWMXGJHZKR 7KH SHWLWLRQHUV DOOHJH WKDW MRLQW UHSUHVHQWDWLRQ SHUYDGHG SUHVXPDEO\LVIDPLOLDUZLWKWKHOHJDOWDOHQWVDQGFKDUDFWHURI WKHLUGHIHQVHEHFDXVH$WWRUQH\0XUSK\SURYLGHGHDFKRIWKHP WKHODZ\HUVZKRSUDFWLFHDWWKHORFDOEDUDQGZKRVDZDQG ZLWKVXEVWDQWLYHOHJDODGYLFHWKURXJKRXWWKHSUHWULDODQGWULDO KHDUGWKHZLWQHVVWHVWLI\LVLQDIDUEHWWHUSRVLWLRQWKDQZHDUH SKDVHVRIWKHSURFHHGLQJV0RVVDOOHJHVVSHFLILFDOO\WKDWKH WRHYDOXDWHDFKDUJHRI>FRQIOLFWRILQWHUHVW@l YLVLWHG$WWRUQH\0XUSK\jVRIILFHZLWKRXW$WWRUQH\0RUUHDOH RQVHYHUDORFFDVLRQVZKHUHVXEVWDQWLYHOHJDOGLVFXVVLRQVWRRN ,Q DQ HIIRUW WR GHPRQVWUDWH FOHDU HUURU 0RVV SRLQWV WR SODFH0HPEHUVRIWKHSHWLWLRQHUVjIDPLOLHVIXUWKHUWHVWLILHG $WWRUQH\0RUUHDOHjVDEVHQFHDWWKH0DUFKPHHWLQJ WKDW$WWRUQH\0XUSK\DSSHDUHGWRUHSUHVHQWWKHSHWLWLRQHUV DVHYLGHQFHRI$WWRUQH\0XUSK\jVMRLQWUHSUHVHQWDWLRQ2XU WKURXJKRXWWKHSUHWULDODQGWULDOSURFHHGLQJV UHYLHZRIWKHUHFRUGGHPRQVWUDWHVWKDW0RVVPLVSODFHVKLV UHOLDQFH RQ WKLV DOOHJHG HYLGHQFH  ,W LV XQGLVSXWHG WKDW 7KH GLVWULFW FRXUW FRQVLGHUHG WKHVH DVVHUWLRQV DQG GHWHUPLQHG  >.RKQ@ DQG FRGHIHQGDQW 0RVV NQHZ WKDW $WWRUQH\ :H QRWH WKDW RQ GLUHFW DSSHDO D SULRU SDQHO RI WKLV &RXUW 0XUSK\DQG$WWRUQH\0RUUHDOHZHUHZRUNLQJWRJHWKHU GHWHUPLQHG WKDW m0XUSK\ UHSUHVHQWHG 0RVV >GXULQJ WKH 0DUFK   DQG LQ IDFW WKDW WKH IRXU RI WKHP ZHUH DOO ZRUNLQJ PHHWLQJ@ DQG XOWLPDWHO\ DW WULDOl 0RVV  )G DW  :H DFNQRZOHGJH

WRZDUGWKHFRPPRQJRDORIDIDYRUDEOHYHUGLFWIRUERWK WKDW XQGHU WKH ODZ RI WKH FDVH GRFWULQH D FRXUW RXJKW QRW UHRSHQ LVVXHV GHFLGHG DW DQ HDUOLHU SRLQW LQ WKH VDPH OLWLJDWLRQ 6HH $JRVWLQL Y )HOWRQ GHIHQGDQWV:KLOHWKH>F@RXUWDFFHSWVWKHWHVWLPRQ\WKDW  86    m,VVXHV GHFLGHG DW DQ HDUO\ VWDJH RI WKH WKHUH ZHUH WLPHV ZKHQ FRGHIHQGDQW 0RVV YLVLWHG OLWLJDWLRQ HLWKHU H[SOLFLWO\ RU E\ QHFHVVDU\ LQIHUHQFH IURP WKH GLVSRVLWLRQ $WWRUQH\ 0XUSK\jV RIILFH WR SLFNXS DQG GHOLYHU FRQVWLWXWH WKH ODZ RI WKH FDVHl +DQRYHU ,QV &R Y $PHULFDQ (QJjJ &R PDWHULDOVDQGLQIDFWPD\KDYHHQJDJHGLQFRQYHUVDWLRQV  )G   WK &LU  FLWDWLRQ DQG TXRWDWLRQ PDUNV RPLWWHG

ZLWK $WWRUQH\ 0XUSK\ ZLWKRXW >.RKQ@ RU $WWRUQH\ 7KH GRFWULQH RI ODZ RI WKH FDVH LV mQRW DQ LQH[RUDEOH FRPPDQGl DQG FRXUWV PXVW XVH mFRPPRQ VHQVHl LQ DSSO\LQJ LW 6HH LG +HUH WKH SULRU 0RUUHDOH EHLQJ SUHVHQW WKLV >F@RXUW LV VDWLVILHG WKDW SDQHO QHLWKHU DGGUHVVHG WKH LVVXH RI MRLQW UHSUHVHQWDWLRQ QRU KDG RFFDVLRQ $WWRUQH\0XUSK\ZDVQRWJLYLQJmOHJDODGYLFHlWRFR WR FRQVLGHU WKH UHFRUG GHYHORSHG RQ FROODWHUDO UHYLHZ +DYLQJ WKH GHIHQGDQW0RVVDQGWKDWFRGHIHQGDQW0RVVDWDOOWLPHV RSSRUWXQLW\ WR H[DPLQH WKH H[WHQVLYH WHVWLPRQ\ SUHVHQWHG GXULQJ WKH NQHZWKDW0RUUHDOHZDVKLVDWWRUQH\ HYLGHQWLDU\ KHDULQJ ZH UHVSHFWIXOO\ GLVDJUHH ZLWK WKH SULRU SDQHOjV ILQGLQJ DQG UHDFK WKH FRQFOXVLRQ SUHVHQWHG KHUHLQ ,G *UHDW/DNHV FLWLQJ 'UHGJH 'RFN &R Y 7DQNHU   )G   WK &LU GLVFXVVLRQ RI LVVXHV QRW EHIRUH WKH FRXUW FRQVWLWXWHV GLFWD % s$ 0(6 0 : 0 225( 7 / ( $  0 225( 6 ('(5$/ 5$&7,&( j ) 3 ˆ >@ DW ,, G (G  ODZ RI WKH FDVH GRFWULQH DSSOLHV WR LVVXHV mIXOO\ EULHIHG DQG  6HH GLVFXVVLRQ LQIUD DW SDUW9, VTXDUHO\ GHFLGHGl LQ WKH ILUVW DSSHDO 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

$WWRUQH\0XUSK\FRQWLQXRXVO\SURYLGHG$WWRUQH\0RUUHDOH JXDUDQWHHRIDVVLVWDQFHRIFRXQVHOl$EVHQWDQ\VSHFLILFDQG ZLWKGLVFRYHU\REWDLQHGIURP$UL]RQDDQGLQYLWHG0RVVDQG FUHGLEOH HYLGHQFH DV WR WKH QDWXUH RI WKHVH GLVFXVVLRQV LW $WWRUQH\0RUUHDOHWRDWWHQGWKH0DUFKPHHWLQJLQ ZRXOG EH PHUH VSHFXODWLRQ IRU WKLV &RXUW WR FRQFOXGH WKDW RUGHUWRUHYLHZVXFKGLVFRYHU\&RQWUDU\WR0RVVj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mZLWKRXW 0U 0RUUHDOH EHLQJ SUHVHQW XQGHU DQ\ FLUFXPVWDQFH DQG 0RVVjVVHSDUDWHPHHWLQJVZLWK$WWRUQH\0XUSK\UHTXLUH >$WWRUQH\ 0XUSK\@ SUREDEO\ ZRXOGQjW GR LW ZLWK 0U FORVHUVFUXWLQ\,WLVXQGLVSXWHGWKDW0RVVDUULYHGDORQHDW 0RUUHDOH SUHVHQWl  0RUHRYHU WKH GLVWULFW FRXUW H[SUHVVO\ $WWRUQH\0XUSK\jVRIILFHRQDWOHDVWVL[RFFDVLRQVIROORZLQJ TXHVWLRQHG WKH FUHGLELOLW\ RI 0RVVjV WHVWLPRQ\ DW WKH WKHDUUDLJQPHQW$WWRUQH\0XUSK\GHVFULEHGWKHVHYLVLWVDV HYLGHQWLDU\KHDULQJQRWLQJWKDWmWKH>F@RXUWLVPLQGIXORIWKH LQVWDQFHVZKHUH0RVVZRXOGmGURSWKLQJVRIIDQGSLFNVWKLQJV IDFWWKDW>0RVV@DFNQRZOHGJHGWKDWZKHQLWZDVLQKLVLQWHUHVW XSl  $WWRUQH\ 0XUSK\ H[SUHVVO\ GHQLHG KDYLQJ DQ\ WRGRVRKHJDYHIDOVHWHVWLPRQ\XQGHURDWKDWWULDOl:H mVXEVWDQWLYHGLVFXVVLRQRIHYLGHQFHlZLWK0RVVGXULQJWKHVH WKHUHIRUHDUHXQDEOHWRFRQFOXGHWKDWWKHGLVWULFWFRXUWFOHDUO\ RFFDVLRQV EXW DFNQRZOHGJHG WKDW KH SURYLGHG 0RVV ZLWK HUUHGLQLWVGHWHUPLQDWLRQUHJDUGLQJ$WWRUQH\0XUSK\jVSRVW mFRSLHV RI PRWLRQVl DQG WKDW LI 0RVV KDG D TXHVWLRQ DUUDLJQPHQWFRQWDFWZLWK0RVV UHJDUGLQJWKHFDVHKHmZRXOGKDYHEHHQKDSS\lWRSURYLGHD UHVSRQVH)RUKLVSDUW0RVVWHVWLILHGWKDWKHZDVXQDEOHWR $V ZH DFFHSW WKH GLVWULFW FRXUWjV ILQGLQJ WKDW $WWRUQH\ UHFDOODQ\VSHFLILFGLVFXVVLRQVZLWK$WWRUQH\0XUSK\EXWKH 0XUSK\ SURYLGHG RQO\ GH PLQLPLV DVVLVWDQFH WR 0RVV ZH ZDVFRQILGHQWWKDWKHDQG$WWRUQH\0XUSK\GLVFXVVHGWKHFDVH QHFHVVDULO\ GHWHUPLQH WKDW $WWRUQH\ 0XUSK\jV SRVW GXULQJ WKHVH PHHWLQJV LQFOXGLQJ KDYLQJ  FRQYHUVDWLRQV DUUDLJQPHQWFRQWDFWZLWK0RVVIDLOHGWRJLYHULVHWRDWWRUQH\ UHJDUGLQJ mZKR ZDV FRRSHUDWLQJl mZKDW NLQG RI FKDQFHVl FOLHQWUHODWLRQVKLS&I5LJJV)GDWGHWHUPLQLQJ IDFHG WKH SHWLWLRQHUV DQG mZKDW RSWLRQV >ZHUH@ DYDLODEOHl WKDWGHIHQVHFRXQVHOjVGHPLQLPLVDVVLVWDQFHLQDUJXLQJIRUDQ 7KHUHFRUGLQGLFDWHVWKHUHIRUHWKDW$WWRUQH\0XUSK\jVSRVW H[WHQVLRQRIWLPHRQEHKDOIRIWZRFRGHIHQGDQWVIDLOHGWR DUUDLJQPHQWHQFRXQWHUVZLWK0RVVPD\KDYHFRPSULVHGPRUH FUHDWH WR DQ DWWRUQH\FOLHQW UHODWLRQVKLS JLYLQJ ULVH WR D WKDQWKHGHOLYHU\DQGUHFHLSWRIGLVFRYHU\PDWHULDOV FRQIOLFWRILQWHUHVW&RQVHTXHQWO\WKHSHWLWLRQHUVKDYHIDLOHG WR GHPRQVWUDWH WKDW $WWRUQH\ 0XUSK\ HQJDJHG LQ MRLQW :KLOHWKH&RXUWDFNQRZOHGJHVWKHSRWHQWLDOHWKLFDOULVNV UHSUHVHQWDWLRQGXULQJWKHSRVWDUUDLJQPHQWSURFHHGLQJV SRVHG E\ GHIHQVH FRXQVHO PHHWLQJ ZLWK D UHSUHVHQWHG FR GHIHQGDQWLQWKHDEVHQFHRIWKHFRGHIHQGDQWjVFRXQVHORQWKH HQWLUHW\RIWKHUHFRUGSUHVHQWHGKHUHLQZHDUHXQZLOOLQJWR GLVWXUE WKH GLVWULFW FRXUWjV GHWHUPLQDWLRQ WKDW $WWRUQH\ 0XUSK\ GLG QRW SURYLGH mOHJDO DGYLFHl GXULQJ WKHVH SRVW DUUDLJQPHQWYLVLWVZLWK0RVV&I1L[Y:KLWHVLGH86 m>%@UHDFKRIDQHWKLFDOVWDQGDUGGRHVQRW QHFHVVDULO\ PDNH RXW D GHQLDO RI WKH 6L[WK $PHQGPHQW 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

 6XFFHVVLYHUHSUHVHQWDWLRQ DFWLYHO\ UHSUHVHQWHG FRQIOLFWLQJ LQWHUHVWV LQ FDVHV RI VXFFHVVLYHUDWKHUWKDQVLPXOWDQHRXVUHSUHVHQWDWLRQ6HH5LJJV $OWKRXJK ZH FRQFXU LQ WKH GLVWULFW FRXUWjV ILQGLQJ WKDW )GDW6HHDOVR(QRFKY*UDPHO\)G m$WWRUQH\0XUSK\QHYHULQWHQGHGWRUHSUHVHQW0RVVDWWULDOl WK&LU0F&RQLFRY$ODEDPD)GWK WKH UHFRUG UHYHDOV WKDW $WWRUQH\ 0XUSK\ GHYHORSHG DQ &LU  0DQQKDOW Y 5HHG  )G   WK DWWRUQH\FOLHQW UHODWLRQVKLS ZLWK 0RVV GXULQJ WKH SUH &LU LQGLFWPHQW SURFHHGLQJV  )ROORZLQJ 0RVVjV LQLWLDO FRQVXOWDWLRQZLWKFRXQVHO$WWRUQH\0RUUHDOHDVVXUHG0RVV 7KH IHDU LQ VXFFHVVLYH UHSUHVHQWDWLRQ FDVHV LV WKDW WKH WKDW KH DQG $WWRUQH\ 0XUSK\ mZRXOG EH ZRUNLQJ FORVH ODZ\HUZLOOIDLOWRFURVVH[DPLQHWKHIRUPHUFOLHQWULJRURXVO\ WRJHWKHUlWRUHVROYHWKHPDWWHU$WWRUQH\0XUSK\WKHUHDIWHU IRUIHDURIUHYHDOLQJRUPLVXVLQJSULYLOHJHGLQIRUPDWLRQ6HH DGYDQFHG VHYHUDO HIIRUWV RQ 0RVVjV EHKDOI LQFOXGLQJ 'XQFDQ)GDW(QRFK)GDW0DQQKDOW FRUUHVSRQGLQJ ZLWK 8QLWHG 6WDWHV $WWRUQH\ 0DUNPDQ DQG  )G DW   7KXV WKH PRVW FRPPRQ H[DPSOH RI DQ WUDYHOLQJ  WR $UL]RQD IRU WKH SXUSRVHV RI LQYHVWLJDWLQJ DFWXDO FRQIOLFW RI LQWHUHVW DULVLQJ IURP VXFFHVVLYH SRWHQWLDOZLWQHVVHV'XULQJWKHHYLGHQWLDU\KHDULQJ$WWRUQH\ UHSUHVHQWDWLRQRFFXUVZKHUHDQDWWRUQH\jVIRUPHUFOLHQWVHUYHV 0XUSK\ DFNQRZOHGJHG WKDW WKHVH DFWLYLWLHV FUHDWHG DQ DVDJRYHUQPHQWZLWQHVVDJDLQVWWKHDWWRUQH\jVFXUUHQWFOLHQW mDWWRUQH\FOLHQW UHODWLRQVKLSl  :KLOH WKLV DWWRUQH\FOLHQW DWWULDO6HHHJ8QLWHG6WDWHVY0F&XWFKHRQ)G UHODWLRQVKLSFHDVHGVKRUWO\DIWHUWKHDUUDLJQPHQWLWLVZLWK WK&LU8QLWHG6WDWHVY)O\QQ)GWK OLWWOH KHVLWDWLRQ WKDW ZH FRQFOXGH WKDW $WWRUQH\ 0XUSK\ &LU(QRFK)GDW8QLWHG6WDWHVY0DOSLHGL UHSUHVHQWHG0RVVGXULQJWKHSUHLQGLFWPHQWSHULRG )GG&LU7DNDFVY(QJOH)G WK&LU $WWRUQH\0XUSK\jVSUHLQGLFWPHQWUHSUHVHQWDWLRQRI0RVV DQGVXEVHTXHQWUHSUHVHQWDWLRQRI.RKQSUHVHQWVWKHLVVXHRI $VWKHGLVWULFWFRXUWIDLOHGWRDGGUHVVWKHLVVXHRIVXFFHVVLYH ZKHWKHU$WWRUQH\0XUSK\ODERUHGXQGHUDQDFWXDOFRQIOLFWRI UHSUHVHQWDWLRQLWEHFRPHVWKHGXW\RIWKLV&RXUWWRDGGUHVV LQWHUHVW DULVLQJ IURP WKHVH VXFFHVVLYH UHSUHVHQWDWLRQ ZKHWKHU $WWRUQH\ 0XUSK\jV VXFFHVVLYH UHSUHVHQWDWLRQV RI 6XFFHVVLYHUHSUHVHQWDWLRQRFFXUVZKHUHGHIHQVHFRXQVHOKDV 0RVVDQG.RKQJDYHULVHWRDFRQIOLFWRILQWHUHVWUHQGHULQJ SUHYLRXVO\UHSUHVHQWHGDFRGHIHQGDQWRUWULDOZLWQHVV6HH WKHSHWLWLRQHUVjUHSUHVHQWDWLRQFRQVWLWXWLRQDOO\LQHIIHFWLYH JHQHUDOO\5LJJV)GDWm&RQIOLFWVPD\DULVH ZKHQ DQ DWWRUQH\ VLPXOWDQHRXVO\ UHSUHVHQWV FOLHQWV ZLWK 3ULRUWRWKH6XSUHPH&RXUWjVGHFLVLRQLQ0LFNHQV6 GLIIHULQJ LQWHUHVWV PXOWLSOH UHSUHVHQWDWLRQ RU ZKHQ DQ &WFRXUWVDSSOLHGWKH6XOOLYDQSUHVXPSWLRQRISUHMXGLFH DWWRUQH\UHSUHVHQWLQJDGHIHQGDQWKDVSUHYLRXVO\UHSUHVHQWHG WR FRQIOLFW RI LQWHUHVW FODLPV DULVLQJ IURP VXFFHVVLYH FRGHIHQGDQWVRUWULDOZLWQHVVHVVXFFHVVLYHUHSUHVHQWDWLRQl UHSUHVHQWDWLRQ6HH5LJJV)GDWQm>7@KLVFLUFXLW 8QLWHG6WDWHVY6KHSDUG)GWK&LU DSSOLHV WKH &XO\HU >Y 6XOOLYDQ@ DQDO\VLV WR DOO 6L[WK ,W LV PRUH GLIILFXOW IRU D GHIHQGDQW WR VKRZ WKDW FRXQVHO $PHQGPHQWFRQIOLFWRILQWHUHVWFODLPVlFLWLQJ8QLWHG6WDWHV Y0D\V)GWK&LU6HHDOVR5RPLQH Y+HDG)GWK&LU3HULOORYsRKQVRQ  )GG&LU)O\QQ)GDW%HHWV 7KH 0LFKLJDQ 5XOHV RI 3URIHVVLRQDO &RQGXFW SODFH VLPLODU UHVWULFWLRQV RQ DQ DWWRUQH\jV DELOLW\ WR UHSUHVHQW D FOLHQW LI WKH Y&ROOLQV)GWK&LU&KXUFKY6XOOLYDQ UHSUHVHQWDWLRQ LV mGLUHFWO\ DGYHUVHl WR WKH UHSUHVHQWDWLRQ RI DQ DWWRUQH\jV )GWK&LU0DQQKDOW)GDW IRUPHU FOLHQW $00 5XOH  RI WKH 0LFKLJDQ 5XOHV RI 3URIHVVLRQDO &RQGXFW $00 DOVR 3HRSOH Y *DOODJKHU  0LFK $SS   1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

  ,Q 0LFNHQV KRZHYHU WKH &RXUW REVHUYHG WKH ZKHUH WULDO MXGJHV KDYH IDLOHG WR LQTXLUH LQWR FRQIOLFWV RI mKROGLQJVRIWKH&RXUWVRI$SSHDOVZKLFKDSSOLHG6XOOLYDQ LQWHUHVWLQVXFFHVVLYHUHSUHVHQWDWLRQFDVHVl0RQWR\D XQEOLQNLQJO\WRDOONLQGVRIDWWRUQH\HWKLFDOFRQIOLFWVlDQG Y/\WOH1R86$SS/(;,6WK FDXWLRQHG &LU1RYHPEHU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m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l %HHWV  )G LQWHUHVW LV OLNHO\ WR DULVH WKH FRXUW VKDOO WDNH VXFK PHDVXUHV DV  PD\ EH DSSURSULDWH WR SURWHFW HDFK GHIHQGDQWjV ULJKW WR FRXQVHO 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

VXSSRUWV WKH H[FOXVLYH DSSOLFDWLRQ RI 6XOOLYDQ RQO\ WR FLWLQJ6PLWKY:KLWH)GWK LQVWDQFHVRIMRLQWUHSUHVHQWDWLRQ7KH&RXUWH[SODLQHG &LU   6HH DOVR 0DQQKDOW  )G DW  m,Q VXFFHVVLYHUHSUHVHQWDWLRQFRQIOLFWVRILQWHUHVWVPD\DULVHLI 7KLVLVQRWWRVXJJHVWWKDWRQHHWKLFDOGXW\LVPRUHRU WKHFDVHVDUHVXEVWDQWLDOO\UHODWHGRULIWKHDWWRUQH\UHYHDOV OHVV LPSRUWDQW WKDQ DQRWKHU  7KH SXUSRVH RI RXU SULYLOHJHGFRPPXQLFDWLRQVRIWKHIRUPHUFOLHQWRURWKHUZLVH +ROORZD\ DQG 6XOOLYDQ H[FHSWLRQV IURP WKH RUGLQDU\ GLYLGHVKLVOR\DOWLHVl&LWDWLRQRPLWWHG$QH[DPLQDWLRQ UHTXLUHPHQWV RI 6WULFNODQG    LV QRW WR HQIRUFH WKH RI 0LFNHQV UHYHDOV WKDW LW LV WKH OLEHUDO DSSOLFDWLRQ RI WKLV &DQRQVRI/HJDO(WKLFVEXWWRDSSO\QHHGHGSURSK\OD[LV mVXEVWDQWLDO UHODWHGQHVVl WHVW WKDW WURXEOHG WKH &RXUW  7KH LQ VLWXDWLRQV ZKHUH 6WULFNODQG LWVHOI LV HYLGHQWO\ 0LFNHQV&RXUWH[SOLFLWO\LQGLFDWHG WKDWWKHLQYRFDWLRQRID LQDGHTXDWHWRDVVXUHYLQGLFDWLRQRIWKHGHIHQGDQWjV6L[WK SUHVXPSWLRQ LV XQQHFHVVDU\ RQO\ LQ IDFWXDOO\ UHODWHG FDVHV $PHQGPHQWULJKWWRFRXQVHO EHFDXVHWKHUHLVOHVVOLNHOLKRRGRISUHMXGLFHLQFLUFXPVWDQFHV RI mVXEVWDQWLDOO\ UHODWHGl DV RSSRVHG WR mPXOWLSOH 0LFNHQV6&WDWFLWDWLRQRPLWWHG7KHIRUHJRLQJ FRQFXUUHQWlUHSUHVHQWDWLRQV0LFNHQV6&WDW UDWLRQDOH UHDIILUPHG WKH &RXUWjV SULRU FRQFHUQ RYHU WKH LQDGHTXDFLHVRIWKH6WULFNODQGWHVWZKHQDSSOLHGWRFRQIOLFWRI :HGRQRWPDNHDQLPSHUPLVVLEOHOHDSLQSUHGLFWLQJWKDWD LQWHUHVWFODLPV$VWKH&RXUWSUHYLRXVO\UHFRJQL]HG mLQD 6XSUHPH&RXUWGHFLVLRQOLQJHUVRQWKHKRUL]RQWKDWH[SUHVVO\ FDVHRIMRLQWUHSUHVHQWDWLRQRIFRQIOLFWLQJLQWHUHVWVWKHHYLO ZLOOOLPLWWKHDSSOLFDWLRQRI6XOOLYDQLQFDVHVRIVXFFHVVLYH LV LQ ZKDWWKHDGYRFDWHILQGVKLPVHOIFRPSHOOHGWRUHIUDLQ UHSUHVHQWDWLRQ  7KH HYHQWXDO VFRSH RI WKLV OLPLWDWLRQ LV IURPGRLQJl+ROORZD\86DW6WULFNODQGSODFHV KRZHYHUDPDWWHUWKDWZHQHHGQRWDGGUHVVLQWKHFDVHVXE RQWKHSDUW\DOOHJLQJDFRQIOLFWRILQWHUHVWWKHRQHURXVEXUGHQ MXGLFH EHFDXVH WKH LQVWDQW VFHQDULR IDOO RXWVLGH RI WKH RIKDYLQJWRSURYHDQHJDWLYHWKDWLVGHPRQVWUDWLQJWKDWKLV WUDGLWLRQDOFODVVRIVXFFHVVLYHUHSUHVHQWDWLRQFDVHVWKDWZHUH FRXQVHO LPSURSHUO\ UHIUDLQHG IURP DFWLQJ LQ D FRQVLGHUHGLQ0LFNHQV FRQVWLWXWLRQDOO\HIIHFWLYH PDQQHU  7KH &RXUW WKHUHIRUH FUHDWHG D QDUURZ SUHVXPSWLRQ RI SUHMXGLFH DV D QHFHVVDU\ $WWRUQH\ 0XUSK\jV UHSUHVHQWDWLRQV RI 0RVV DQG .RKQ SURSK\OD[LVDJDLQVWWKHKLJKSUREDELOLW\RISUHMXGLFHDULVLQJ GLIIHUHG IURP WKH WUDGLWLRQDO VXFFHVVLYH UHSUHVHQWDWLRQ LQFLUFXPVWDQFHVRImPXOWLSOHFRQFXUUHQWUHSUHVHQWDWLRQlDQG VFHQDULR LQ WKDW WKH\ VKDUHG PRUH WKDQ D VXEVWDQWLDO WKH GLIILFXOW\ LQ SURYLQJ WKDW SUHMXGLFH XQGHU 6WULFNODQG UHODWHGQHVVWKH\ZHUHQHDUO\LGHQWLFDO$WWRUQH\0XUSK\jV 0LFNHQV6&WDW UHSUHVHQWDWLRQV RFFXUUHG GXULQJ WKH VDPH SURFHHGLQJV DQG DURVH IURP LGHQWLFDO IDFWV  7KLV LQWHUWZLQLQJ UHODWLRQVKLS :KLOH WKLV &RXUW KDV QRW KDG RFFDVLRQ WR DGGUHVV WKLV SRVHGVLPLODUFRQFHUQVWRWKRVHSUHVHQWHGLQFDVHVRIPXOWLSOH SUHFLVHLVVXHVHYHUDOFLUFXLWVKDYHUHDVRQHGWKDW6WULFNODQG FRQFXUUHQW UHSUHVHQWDWLRQ WKDW LV mWKH KLJK SUREDELOLW\ RI VLPLODUO\IDLOVLQWKHVXFFHVVLYHUHSUHVHQWDWLRQFRQWH[WZKHUH SUHMXGLFHl DQG WKH mGLIILFXOW\ RI SURYLQJ WKDW SUHMXGLFHl WKH DOOHJLQJ SDUW\ GHPRQVWUDWHV WKDW  FRXQVHOjV HDUOLHU 0LFNHQV6&WDW6HHDOVR&KXUFK)GDW UHSUHVHQWDWLRQ RI WKH ZLWQHVV RU FRGHIHQGDQW ZDV m>,@QWKHFRQWH[WRIVXFFHVVLYHUHSUHVHQWDWLRQVZHILQG VXEVWDQWLDOO\ DQG SDUWLFXODUO\ UHODWHG WR FRXQVHOjV ODWHU LW GLIILFXOW WR HQYLVLRQ FLUFXPVWDQFHV PRUH IUDXJKW ZLWK UHSUHVHQWDWLRQRIGHIHQGDQWRUFRXQVHODFWXDOO\OHDUQHG LQKHUHQWFRQIOLFWWKDQZKHUHWKHIRUPHUUHSUHVHQWDWLRQZDV SDUWLFXODU FRQILGHQWLDO LQIRUPDWLRQ GXULQJ WKH SULRU IDFWXDOO\LQWHUWZLQHGZLWKWKHFULPLQDOGHIHQGDQWjVFDVHl UHSUHVHQWDWLRQ RI WKH ZLWQHVV RU FRGHIHQGDQW WKDW ZDV :KLOHZHDJUHHWKDWWKHUHLVDOHVVHUOLNHOLKRRGRISUHMXGLFHLQ UHOHYDQW WR GHIHQGDQWjV ODWHU FDVH  6HH (QRFK  )G DW WUDGLWLRQDOFDVHVRIVXFFHVVLYHUHSUHVHQWDWLRQVXFKDVZKHUH 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

WKHDWWRUQH\LVFRPSHOOHGWRFURVVH[DPLQHDIRUPHUFOLHQWDQG &DUSHQWHU)GWK&LU8QLWHG6WDWHV WKHIRUPHUUHSUHVHQWDWLRQERUHRQO\DmVXEVWDQWLDOUHODWLRQlWR Y%HUQVWHLQ)GG&LU WKH FXUUHQW SURFHHGLQJV WKH SUREDELOLW\ RI SUHMXGLFH GUDPDWLFDOO\LQFUHDVHVLQFLUFXPVWDQFHVZKHUHWKH DWWRUQH\ +HUHWKHJRYHUQPHQWFKDUJHG0RVVDVWKHOHDGHU RIWKH UHSUHVHQWHGDFRGHIHQGDQWGXULQJWKHSUHLQGLFWPHQWSKDVHRI FRQVSLUDF\DQGHYLGHQFHDGGXFHGDWWKHHYLGHQWLDU\KHDULQJ WKH VDPH SURFHHGLQJ  &I 6XOOLYDQ  86 DW  m7KH LQGLFDWHGWKDW0RVVSURYLGHGWKHIXQGLQJIRU.RKQjVGHIHQVH SURYLVLRQRIVHSDUDWHWULDOVIRU6XOOLYDQDQGKLVFRGHIHQGDQWV ,QGHHGWKHUHH[LVWVDPSOHHYLGHQFHLQWKHUHFRUGLQGLFDWLQJ VLJQLILFDQWO\UHGXFHGWKHSRWHQWLDOIRUDGLYHUJHQFHLQWKHLU WKDW 0RVV DOVR SDLG WKH OHJDO IHHV RI RWKHU LQGLYLGXDOV LQWHUHVWVl7KLVSUREDELOLW\UHDFKHVQHDUFHUWDLQW\ZKHUHDV LQYROYHG LQ WKH FRQVSLUDF\  $OWKRXJK $WWRUQH\ 0XUSK\ KHUHWKHDWWRUQH\jVIRUPHUDQGFXUUHQWFOLHQWVFROODERUDWHWR GHQLHG UHFHLYLQJ DQ\ IXQGV IURP 0RVV WKH GLVWULFW FRXUW PRXQWDGHIHQVH7KLVH[WUHPHOLNHOLKRRGRISUHMXGLFHDQG IRXQGLWmGLIILFXOWWRUHFRQFLOHWKLVWHVWLPRQ\lZLWK.RKQjV WKHFRUUHVSRQGLQJGLIILFXOW\LQGHPRQVWUDWLQJWKDWSUHMXGLFH VWDWHPHQWmWKDWQRWRQO\GLG >.RKQ@QRWSD\DQ\PRQH\WR ZDUUDQWWKHDSSOLFDWLRQRI6XOOLYDQWRWKHSHWLWLRQHUVjFODLPV $WWRUQH\ 0XUSK\    >EXW@ KH ZDV QHYHU LQ DQ\ ILQDQFLDO SRVLWLRQWRGRVRl 2XUKROGLQJWKDW6XOOLYDQDSSOLHVWRWKHSHWLWLRQHUVjFODLPV LVEXWWUHVVHGE\WKHGLVWULFWFRXUWjVGHWHUPLQDWLRQWKDWmLWLV :HDJDLQGHFOLQHWRGLVWXUEWKHGLVWULFWFRXUWjVILQGLQJ:H FHUWDLQO\ QRW XQOLNHO\ WKDW LQ IDFW VRPH LI QRW DOO RI WKH QRWH RQO\ WKDW WKH GLVWULFW FRXUW IRXQG WKDW LW ZDV mQRW IXQGV IRU UHSUHVHQWLQJ >.RKQ@ FDPH IURP FRGHIHQGDQW XQOLNHO\lWKDW0RVVGLUHFWHGIXQGVWR$WWRUQH\0XUSK\DQG 0RVVl7KLUGSDUW\IHHDUUDQJHPHQWVDUHLQKHUHQWO\VXVSHFW D FRPSOHWH UHDGLQJ RI WKH GLVWULFW FRXUWjV RSLQLRQ IDLOV WR SDUWLFXODUO\ZKHQDPHPEHURIWKHDOOHJHGFRQVSLUDF\LVWKH FODULI\ZKHWKHUWKHFRXUWGHHPHGWKLVOLNHOLKRRGDVDPRXQWLQJ VRXUFHRIWKHSD\PHQW7KH6XSUHPH&RXUWPDGHWKLVFOHDULQ WRDVHSDUDWHFRQIOLFWRILQWHUHVWXQGHUWKHILUVWSURQJRIWKH :RRG86ZKHUHWKH&RXUWVWDWHG 6XOOLYDQWHVW:KLOHWKHUHFRUGSURYLGHVVRPHVXSSRUWIRUWKH GLVWULFWFRXUWjVILQGLQJWKDW0RVVSDLGDWOHDVWVRPHSDUWRI &RXUWVDQGFRPPHQWDWRUVKDYHUHFRJQL]HGWKHLQKHUHQW .RKQjVOHJDOIHHVZHDUHXQDEOHWRGHWHUPLQHDVDPDWWHURI GDQJHUV WKDW DULVH ZKHQ D FULPLQDO GHIHQGDQW LV ODZWKDWWKLVmOLNHOLKRRGlUHDFKHGWKHOHYHORIDFRQIOLFWRI UHSUHVHQWHGE\DODZ\HUKLUHGDQGSDLGE\DWKLUGSDUW\ LQWHUHVW6HHHJ%XFXYDODVY8QLWHG6WDWHV)G SDUWLFXODUO\ZKHQWKHWKLUGSDUW\LVWKHRSHUDWRURIWKH VW&LUILQGLQJQRFRQIOLFWRILQWHUHVWLQWKLUGSDUW\ DOOHJHGFULPLQDOHQWHUSULVH2QHULVNLVWKDWWKHODZ\HU IHHDUUDQJHPHQWZKHUHFRGHIHQGDQWVKDGVHSDUDWHFRXQVHO ZLOO SUHYHQW KLV FOLHQW IURP REWDLQLQJ OHQLHQF\ E\ SUHYHQWLQJWKHFOLHQWIURPRIIHULQJWHVWLPRQ\DJDLQVWKLV :H GHWHUPLQH WKDW $WWRUQH\ 0XUSK\jV VXFFHVVLYH IRUPHUHPSOR\HURUIURPWDNLQJRWKHUDFWLRQVFRQWUDU\WR UHSUHVHQWDWLRQVRI0RVVDQG.RKQGXULQJLQH[WULFDEO\OLQNHG WKHHPSOR\HU VLQWHUHVW SURFHHGLQJVFRXSOHGZLWKHYLGHQFHWKDW0RVVSDLGDWOHDVW VRPHSDUWRI.RKQjVOHJDOIHHVWR$WWRUQH\0XUSK\FUHDWHVD ,GDW6HHDOVR4XLQWHURY8QLWHG6WDWHV)G VXIILFLHQW OLNHOLKRRG RI SUHMXGLFH DV ZHOO DV DWWHQGDQW WK&LU8QLWHG6WDWHVY5RGULJXH] GLIILFXOWLHV LQ SURYLQJ WKDW SUHMXGLFH XQGHU 6WULFNODQG )GVW&LU'DQQHUY8QLWHG6WDWHV)G UHTXLULQJWKHDSSOLFDWLRQRI6XOOLYDQ WK&LU8QLWHG6WDWHVY6KDXJKQHVV\  )G   WK &LU  8QLWHG 6WDWHV Y 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

 7KHDSSOLFDWLRQRI6XOOLYDQ FOLHQWRUDFWLYHO\SUHVVXUHVWKHGHIHQGDQWLQWRDFFHSWLQJ WKHSOHDLQRUGHUWRHQVXUHWKDWGHIHQVHFRXQVHOjVRWKHUFOLHQWV D 7KHILUVWSURQJDQDFWXDOFRQIOLFWRILQWHUHVW UHFHLYHVLPLODUSOHDV6HH+DOO)GDWGHWHUPLQLQJ WKDW D FRQIOLFW RI LQWHUHVW DURVH IURP GHIHQVH FRXQVHOjV  :HQRZSURFHHGWRFRQVLGHUWKHILUVWSURQJRIWKH6XOOLYDQ UHMHFWLRQRIDSOHDDJUHHPHQWRIIHUHGWRMRLQWO\UHSUHVHQWHGFR WHVWZKHWKHU$WWRUQH\0XUSK\jVVXFFHVVLYHUHSUHVHQWDWLRQV GHIHQGDQWV7KRPDV)GDWILQGLQJDFRQIOLFW FUHDWHG D FRQIOLFW RI LQWHUHVW  ,Q RUGHU WR GHPRQVWUDWH D RILQWHUHVWZKHUHWKHSURVHFXWRUH[WHQGHGDmSDFNDJHSOHDl FRQIOLFWRILQWHUHVWXQGHU6XOOLYDQWKHSHWLWLRQHUVmPXVWSRLQW ZKHUH DOO WKUHH MRLQWO\ UHSUHVHQWHG FRGHIHQGDQWV KDG WR WR VSHFLILF LQVWDQFHV LQ WKH UHFRUG WKDW VXJJHVW DQ DFWXDO DFFHSWRIIHUWZRGHIHQGDQWVZHUHZLOOLQJWRDFFHSWWKHRIIHU FRQIOLFWRULPSDLUPHQWRI>WKHLU@LQWHUHVWVl7KRPDV)G DQGGHIHQVHFRXQVHOSUHVVXUHGWKHWKLUGGHIHQGDQWWRDFFHSW DW  LQWHUQDO FLWDWLRQV DQG TXRWDWLRQV RPLWWHG  7KH\ SOHD IXUWKHUmPXVWPDNHDIDFWXDOVKRZLQJRILQFRQVLVWHQWLQWHUHVWV DQG GHPRQVWUDWH WKDW WKH DWWRUQH\ PDGH D FKRLFH EHWZHHQ ,QWKHLQVWDQWDSSHDOWKHUHFRUGFRQFOXVLYHO\GHPRQVWUDWHV SRVVLEOH DOWHUQDWLYH FRXUVHV RI DFWLRQ VXFK DV HOLFLWLQJ RU WKDW$86$sDQLFHGLGQRWH[WHQGSOHDRIIHUVWRWKHSHWLWLRQHUV IDLOLQJWRHOLFLWHYLGHQFHKHOSIXOWRRQHFOLHQWEXWKDUPIXOWR $86$sDQLFHUHSHDWHGO\WHVWLILHGWKDWKHGLGQRWH[WHQGSOHD WKHRWKHUl,G+RZHYHULIWKHFRQIOLFWLVDVWRDPDWWHUWKDW RIIHUVWRWKHSHWLWLRQHUVDQGWKHUHFRUGODFNVDQ\GRFXPHQWDU\ LVLUUHOHYDQWRUWKHFRQIOLFWLVPHUHO\K\SRWKHWLFDOWKHUHLVQR HYLGHQFHLQGLFDWLQJWKHH[LVWHQFHRIVXFKRIIHUV$VWKHUH FRQVWLWXWLRQDO YLRODWLRQ  6HH 6XOOLYDQ  86 DW  ZDVQRSOHDRIIHULWZDVLPSRVVLEOHIRU$WWRUQH\0XUSK\WR m>8@QWLO D GHIHQGDQW VKRZV WKDW KLV FRXQVHO DFWLYHO\ HLWKHUUHMHFWRUDFFHSWDSOHDDVDUHVXOWRIGLYLGHGOR\DOWLHVWR UHSUHVHQWHGFRQIOLFWLQJLQWHUHVWVKHKDVQRWHVWDEOLVKHGWKH 0RVVDQG.RKQ FRQVWLWXWLRQDO SUHGLFDWH IRU KLV FODLP RI LQHIIHFWLYH DVVLVWDQFHl  6HH DOVR 8QLWHG 6WDWHV Y +RSNLQV  )G 6HYHUDOXQSXEOLVKHGGHFLVLRQVRIWKLV&RXUWLPSOLHGO\KDYH WK&LUILQGLQJDK\SRWKHWLFDOFRQIOLFWZKHUH LQGLFDWHGWKDWDFRQIOLFWRILQWHUHVWPD\DULVHZKHUHGHIHQVH DWWRUQH\VLPXOWDQHRXVO\UHSUHVHQWHGRQHFOLHQWZKRSURYLGHG FRXQVHOjVFRPSHWLQJOR\DOWLHVSUHYHQWWKHH[SORUDWLRQRISOHD LQIRUPDWLRQ WR WKH JRYHUQPHQW LQFXOSDWLQJ DQRWKHU RI WKH QHJRWLDWLRQVZLWKWKHJRYHUQPHQW6HH1HZPDQY8QLWHG DWWRUQH\jVFOLHQWVZLWKRXWWKHDWWRUQH\jVNQRZOHGJH 6WDWHV1R86$SS/(;,6WK&LU $XJXVWUHPDQGLQJIRUDHYLGHQWLDU\KHDULQJZKHUH 7KHSHWLWLRQHUVDVVHUWWKDWWKHLUVXFFHVVLYHUHSUHVHQWDWLRQV FRXQVHOIDLOHGWRFRPPXQLFDWHWKHGHIHQGDQWjVZLOOLQJQHVVWR FUHDWHG D FRQIOLFW RI LQWHUHVW EHFDXVH $WWRUQH\ 0XUSK\jV FRRSHUDWH ZLWK JRYHUQPHQW DXWKRULWLHV  8QLWHG 6WDWHV Y FRPSHWLQJOR\DOWLHVWR0RVVDQG.RKQLPSDLUHGKLVDELOLW\WR +ROW1R86$SS/(;,6WK&LU VHFXUHSOHDDJUHHPHQWVUHTXLULQJFRRSHUDWLRQ7KLV&RXUWKDV 0D\UHYLHZLQJFODLPWKDWGHIHQVHFRXQVHOIDLOHG VWDWHGWKDWDFRQIOLFWRILQWHUHVWRFFXUVZKHUHGHIHQVHFRXQVHO WRH[SORUHSOHDQHJRWLDWLRQVEHFDXVHRIDFRQIOLFWRILQWHUHVW LVmSUHYHQWHGIURPHIIHFWLYHO\HQJDJLQJLQDQ\VHSDUDWHSOHD DULVLQJIURPFRGHIHQGDQWjVSD\PHQWRIWKHGHIHQGDQWjVOHJDO QHJRWLDWLRQV RQ RQH SDUW\jV EHKDOI ZLWKRXW GHWULPHQWDOO\ IHHV   7KHVH GHFLVLRQV DUH FRQVLVWHQW ZLWK WKH 6XSUHPH DIIHFWLQJ FRGHIHQGDQWVl 7KRPDV  )G DW  &RXUWjVVWDWHPHQWVLQ+ROORZD\WKDWmLQWKLVFDVH>DFRQIOLFW +RZHYHU VXFK FDVHV JHQHUDOO\ KDYH DGGUHVVHG VFHQDULRV ZKHUH D SOHD RIIHU KDV EHHQ H[WHQGHG DQG GHIHQVH FRXQVHO HLWKHULVXQDEOHWRDFFHSWWKHSOHDRQEHKDOIRIRQHFOLHQW  RXWRIIHDURIGHWULPHQWDOO\LPSDFWLQJWKHLQWHUHVWRIDQRWKHU ,W ZDV WKH H[SUHVV SROLF\ RI WKH 8QLWHG 6WDWHV $WWRUQH\jV 2IILFH WR SUHVHQW DOO SOHD RIIHUV LQ ZULWLQJ 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

RILQWHUHVW@PD\ZHOOKDYHSUHFOXGHGGHIHQVHFRXQVHOIURP DFNQRZOHGJHG WKH FRQIOLFW SRVHG E\ WKH JRYHUQPHQWjV H[SORULQJSRVVLEOHSOHDQHJRWLDWLRQVDQGWKHSRVVLELOLW\RIDQ UHTXLUHPHQWWKDW.RKQFRRSHUDWHDJDLQVW0RVV DJUHHPHQW WR WHVWLI\ IRU WKH SURVHFXWLRQ SURYLGHG D OHVVHU FKDUJHRUDIDYRUDEOHVHQWHQFLQJUHFRPPHQGDWLRQZRXOGEH 4 'R \RX VHH DQ\ HWKLFDO SUREOHPV ZLWK KDYLQJ DFFHSWDEOHl+ROORZD\86DWHPSKDVLVDGGHG UHSUHVHQWHG 0U 0RVV WKURXJK DW OHDVW WKH 7KHUHIRUHLWLVDUHDVRQDEOHH[SDQVLRQRISULRUSUHFHGHQWWR DUUDLJQPHQW WDNLQJ 0U .RKQ DQG KLV RIIHU RI KROGWKDWDFRQIOLFWRILQWHUHVWDULVHVZKHUHDVDUHVXOWRIMRLQW VXEVWDQWLDODVVLVWDQFHDJDLQVW0RVVDQGKDYLQJKLP UHSUHVHQWDWLRQRIFRGHIHQGDQWVRUVXFFHVVLYHUHSUHVHQWDWLRQ FRRSHUDWH RI FRGHIHQGDQWV LQ WKH VDPH SURFHHGLQJ GHIHQVH FRXQVHO IDLOVWRH[SORUHSRVVLEOHSOHDQHJRWLDWLRQV $ , VXSSRVH LI WKHUH ZHUH D GHVLUH E\ 0U .RKQ WR FRRSHUDWHLIKHKDGVDLGm,@I 0U .RKQ ZRXOG KDYH VDLG m, ZRXOG OLNH WR GHIHQGDQW DOOHJLQJ WKDW KLV DWWRUQH\jV FRQIOLFW RI LQWHUHVW FRRSHUDWHl \RX ZRXOG KDYH UHSUHVHQWHG KLP \RX SUHYHQWHGWKHH[SORUDWLRQRISOHDQHJRWLDWLRQVWRGHPRQVWUDWH ZRXOGKDYHJRQHWR0UsDQLFHDQGLIDQDJUHHPHQW WKDWWKHJRYHUQPHQWZDVZLOOLQJWRH[WHQGRUFRQVLGHUDQ ZRXOGKDYHEHHQZRUNHGRXW\RXZRXOGKDYHEHHQ LQYLWDWLRQWRFRPPHQFHSOHDQHJRWLDWLRQV DSDUW\WRWKDW"

7KH SHWLWLRQHUV KDYH PHW WKLV EXUGHQ EHFDXVH LW LV $ ,GRQjWNQRZDERXWWKDWEHFDXVHRIP\SULRUGHDOLQJV XQGLVSXWHG WKDW WKH JRYHUQPHQW ZDV ZLOOLQJ WR QHJRWLDWH D ZLWK0U0RVV SOHD ZLWK .RKQ GXULQJ WKH $SULO  PHHWLQJ EHWZHHQ $WWRUQH\ 0XUSK\ DQG $86$ sDQLFH  $86$ sDQLFH 7KH IRUHJRLQJ WHVWLPRQ\ UHYHDOV WKDW D FRQIOLFW RI LQWHUHVW VSHFLILFDOO\WHVWLILHGWKDWKHGLGQRWRIIHUDSOHDDWWKHWLPH DURVHEHWZHHQ$WWRUQH\0XUSK\jVVXFFHVVLYHUHSUHVHQWDWLRQV EXWmWKH>86$WWRUQH\jV2IILFHZDV@ZLOOLQJDWWKDWSRLQWWR RI0RVVDQG.RKQLQWKDW$WWRUQH\0XUSK\FRXOGQRWH[SORUH GLVFXVV UHVROXWLRQ E\ SOHD ZKLFK LQFOXGHG VXEVWDQWLDO $86$ sDQLFHjV LQYLWDWLRQ WR SXUVXH D SOHD QHJRWLDWLRQV RQ DVVLVWDQFHl  $WWRUQH\0XUSK\DOVRWHVWLILHGWKDWm>$86$@ EHKDOIRI.RKQZLWKRXWEUHDFKLQJKLVGXW\RIOR\DOW\WR0RVV sDQLFHZRXOGKDYHEHHQYHU\OHQLHQWWR.RKQLI>.RKQ@KDG $VVXFKZHGHWHUPLQHWKDW$WWRUQH\0XUSK\jVVXFFHVVLYHDQG FRPHLQl LQWHUWZLQLQJ UHSUHVHQWDWLRQV RI 0RVV DQG .RKQ VDWLVI\ WKH ILUVWSURQJRIWKH6XOOLYDQWHVWDFRQIOLFWRILQWHUHVW 7KH SHWLWLRQHUV IXUWKHU KDYH GHPRQVWUDWHG WKDW $WWRUQH\ 0XUSK\jV VXFFHVVLYH UHSUHVHQWDWLRQV SUHYHQWHG KLP IURP E 7KHVHFRQGSURQJDGYHUVHHIIHFW H[SORULQJ SRVVLEOH SOHD QHJRWLDWLRQV ZLWK $86$ sDQLFH ,QRUGHUIRU$WWRUQH\0XUSK\jVFRQIOLFWVRILQWHUHVWWREHRI :KLOHWHVWLI\LQJDWWKHHYLGHQWLDU\KHDULQJ$WWRUQH\0XUSK\ D FRQVWLWXWLRQDO PDJQLWXGH 6XOOLYDQ UHTXLUHV WKDW WKH SHWLWLRQHUV GHPRQVWUDWH WKDW WKH VXFFHVVLYH UHSUHVHQWDWLRQV 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

DGYHUVHO\DIIHFWHG$WWRUQH\0XUSK\jVSHUIRUPDQFH0LFNHQV 7KHGLVWULFWFRXUWFRQVLGHUHG.RKQjVFODLPRIDGYHUVHHIIHFW 6&WDWKROGLQJWKDWWKHSHWLWLRQHUVSHFLILFDOO\ DQG GHWHUPLQHG WKDW $WWRUQH\ 0XUSK\jV XQZLOOLQJQHVV WR PXVWGHPRQVWUDWHWKDWWKHFRQIOLFWVmDIIHFWHGWKHFRXQVHOjV H[SORUH SOHD QHJRWLDWLRQV GLG QRW GHULYH IURP  VXFFHVVLYH SHUIRUPDQFH DV RSSRVHG WR D PHUH WKHRUHWLFDO GLYLVLRQ RI UHSUHVHQWDWLRQ EXW UDWKHU UHVXOWHG IURP .RKQjV GHVLUH WR OR\DOWLHVl 7KH VKRZLQJ PXVW EH WKDW mFRXQVHO ZDV SXUVXHDGHIHQVHRILQQRFHQFH7KHGLVWULFWFRXUWH[SUHVVO\ LQIOXHQFHGLQKLVEDVLFVWUDWHJLFGHFLVLRQVE\WKHLQWHUHVWV>RI GHWHUPLQHG  mDQ\ FKRLFH E\ $WWRUQH\ 0XUSK\ WR IRUJR WKH IRUPHU FOLHQW@l DV ZKHUH WKH FRQIOLFW mSUHYHQWV DQ LQLWLDWLQJSOHDQHJRWLDWLRQVZDVQRWKDUPIXOWRWKH>.RKQ@l DWWRUQH\     IURP DUJXLQJ WKH UHODWLYH LQYROYHPHQW DQG EHFDXVH m>.RKQ@ ZRXOG QRW KDYH HQWHUWDLQHG WKH LGHD RI FXOSDELOLW\RIKLVFOLHQWVLQRUGHUWRPLQLPL]HWKHFXOSDELOLW\ SOHDGLQJ JXLOW\ DQG WHVWLI\LQJ DJDLQVW FRGHIHQGDQW 0RVVl RIRQHE\HPSKDVL]LQJWKHRWKHUl:KHDWY8QLWHG6WDWHV )XUWKHUPRUHWKHGLVWULFWFRXUWGLVFUHGLWHG.RKQjVWHVWLPRQ\ 86    6HH DOVR 7KRPDV  )G DW  WKDW KH ZDV ZLOOLQJ WR SOHDG JXLOW\ DQG FRRSHUDWH ZLWK WKH m7KH $SSHOODQWV     PXVW GHPRQVWUDWH WKDW WKH DWWRUQH\ JRYHUQPHQW7KHGLVWULFWFRXUWVWDWHGmWKH>F@RXUWLVPLQGIXO PDGHDFKRLFHEHWZHHQSRVVLEOHDOWHUQDWLYHFRXUVHVRIDFWLRQ RIWKHIDFWWKDW>.RKQ@DFNQRZOHGJHGWKDWZKHQLWZDVLQKLV VXFKDVHOLFLWLQJRUIDLOLQJWRHOLFLWHYLGHQFHKHOSIXOWRRQH LQWHUHVWWRGRVRKHJDYHIDOVHWHVWLPRQ\XQGHURDWKDWWULDOl FOLHQWEXWKDUPIXOWRWKHRWKHUl6HHDOVR$PLHOY8QLWHG 6WDWHV)GG&LUm7RVKRZDODSVHLQ 7KH UHFRUG VXSSRUWV WKH GLVWULFW FRXUWjV ILQGLQJ  )RU UHSUHVHQWDWLRQDGHIHQGDQWQHHGQRWGHPRQVWUDWHSUHMXGLFH LQVWDQFH.RKQWHVWLILHGDQGPDLQWDLQHGKLVLQQRFHQFHDWWULDO WKDWWKHRXWFRPHRIKHUWULDOZRXOGKDYHEHHQGLIIHUHQWEXWIRU ,QDGGLWLRQ$WWRUQH\0XUSK\WHVWLILHG WKH FRQIOLFW  EXW RQO\ µWKDW VRPH SODXVLEOH DOWHUQDWLYH GHIHQVHVWUDWHJ\RUWDFWLFPLJKWKDYHEHHQSXUVXHGEXWZDV >.RKQ@KDGDUHODWLRQVKLSZLWK0U0RVVDQRQJRLQJ QRWDQGWKDWWKHDOWHUQDWLYHGHIHQVHZDVLQKHUHQWO\LQFRQIOLFW UHODWLRQVKLSZLWK0U0RVVDV,UHFDOOWKH\KDGEHHQ ZLWKRUQRWXQGHUWDNHQGXHWRWKHDWWRUQH\ VRWKHUOR\DOWLHVRU IULHQGVDQGKDGDEXVLQHVVUHODWLRQVKLSRIVRPHVRUWIRU LQWHUHVWVjl&LWDWLRQRPLWWHG PDQ\ \HDUV    HDUO\ RQ >.RKQ@ VD\V m7KLV LV P\ UHODWLRQVKLSZLWK%RE0RVV,GRQjWNQRZZKDWWKHVH 7KH SHWLWLRQHUV DGYDQFH VHSDUDWH DUJXPHQWV UHJDUGLQJ JX\VDUHWDONLQJDERXW7KH\DUHQRWWHOOLQJWKHWUXWK, DGYHUVHHIIHFWDQGZHDGGUHVVHDFKLQWXUQ GLGQjW GR DQ\WKLQJ OLNH WKDWl  6R KRZjV KH JRLQJ WR FRRSHUDWH6R,GLGQjWWKLQNHDUO\RQWKDWWKHUHZDVJRLQJ .RKQjVDOOHJDWLRQVRIDGYHUVHHIIHFW WR EH D SRVVLELOLW\ KH FRXOG FRRSHUDWH ZLWK WKH JRYHUQPHQW$V\RXNQRZWKDWjVDSRVLWLRQWKDWjVIOXLG .RKQDOOHJHVWKDWWKHVXFFHVVLYHUHSUHVHQWDWLRQVDGYHUVHO\  DIIHFWHG $WWRUQH\ 0XUSK\jV DELOLW\ WR H[SORUH SOHD 0U .RKQ LQ HYHU\ LQVWDQFH ZKHUH , EURDFKHG WKH QHJRWLDWLRQV EHFDXVH $WWRUQH\ 0XUSK\ NQHZ WKDW DQ\ SOHD VXEMHFWVDLGKHZRXOGQHYHUFRRSHUDWHDJDLQVW0U0RVV RIIHU ZRXOG UHTXLUH .RKQ WR WHVWLI\ DJDLQVW 0RVV  .RKQ VSHFLILFDOO\DOOHJHVWKDW$WWRUQH\0XUSK\jVIDLOXUHWRH[SORUH $WWRUQH\0XUSK\IXUWKHUWHVWLILHGWKDWm>L@I0U .RKQKDG SOHD QHJRWLDWLRQV SUHFOXGHG KLP IURP UHFHLYLQJ D SOHD H[SUHVVHGKLVGHVLUHWRFRRSHUDWH,ZRXOGKDYHEHHQNQRFNLQJ DJUHHPHQWVLPLODUWRWKDWUHFHLYHGE\sDHJHUZKLFKUHVXOWHG RQ0UsDQLFHjVGRRUWKHQH[WPRUQLQJl LQDVHQWHQFHRIWKLUW\VL[PRQWKVUDWKHUWKDQWKHPRQWK VHQWHQFHVWKDW.RKQDFWXDOO\UHFHLYHG 2QDSSHDO.RKQDFFRXQWVIRUKLVSHUFHLYHGXQZLOOLQJQHVV WR HQWHU LQWR D SOHD DJUHHPHQW E\ DOOHJLQJ WKDW KLV 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

GLVLQFOLQDWLRQ GHULYHG IURP $WWRUQH\ 0XUSK\jV PLVDGYLFH DGDSWHGl,G7KH&RXUWGHWHUPLQHGWKDWLQRUGHUWRSUHYDLO UHJDUGLQJKLVVHQWHQFLQJH[SRVXUH.RKQVSHFLILFDOO\DOOHJHV RQDFODLPRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHODVDUHVXOWRID WKDW$WWRUQH\0XUSK\LPPHGLDWHO\UHMHFWHGD\HDUSOHD FRQIOLFWRILQWHUHVWDSHWLWLRQHUZKRKDVHQWHUHGDJXLOW\SOHD RIIHUIURP$86$sDQLFHWKDW$WWRUQH\0XUSK\VWDWHGmD PXVW HVWDEOLVK m WKDW WKHUH ZDV DQ DFWXDO FRQIOLFW RI ILYH\HDUSOHDRIIHUZRXOGDPRXQWWRQRRIIHUDWDOOEHFDXVH LQWHUHVW DQG  WKDW WKH FRQIOLFW DGYHUVHO\ DIIHFWHG WKH WKDWjVDOO>.RKQjV@H[SRVXUHLV>VLF@ZRXOGEHILYH\HDUVlDQG YROXQWDU\ QDWXUH RI WKH JXLOW\ SOHD HQWHUHG E\ WKH .RKQHOHFWHGWRJRWRWULDOEHFDXVH$WWRUQH\0XUSK\jV GHIHQGDQWVl7KRPDV)GDWFLWDWLRQRPLWWHG DGYLFHOHGKLPWREHOLHYHWKDWKLVVHQWHQFLQJH[SRVXUHZDV VLPLODUZKHWKHUKHSOHDGHGRUZDVFRQYLFWHGDWWULDO ,WLVDUHDVRQDEOHH[WHQVLRQRI7KRPDVWRKROGWKDWLQRUGHU WRSUHYDLORQDFODLPRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHOD .RKQjV DUJXPHQW LV D PRGLILHG YHUVLRQ RI WKH m/DFN RI SHWLWLRQHUZKRDVVHUWVDFRQIOLFWRILQWHUHVWFDXVHGKLVFRXQVHO $GYLFH6HQWHQFLQJ([SRVXUHlFODLPSUHVHQWHGLQKLVLQLWLDO †PRWLRQ7KHGLVWULFWFRXUWUHMHFWHGWKLVFODLPEDVHG LQ VLJQLILFDQW SDUW RQ LWV ILQGLQJ WKDW $86$ sDQLFH QHYHU  H[WHQGHGDSOHDRIIHU,QVRGRLQJWKHGLVWULFWFRXUWUHDVRQHG 7KH 7KRPDV FRXUW DFNQRZOHGJHG WKDW FRXUWV LPSRVH D PRGLILHG

WKDW.RKQIDLOHGWRGHPRQVWUDWHSUHMXGLFHXQGHU6WULFNODQGLQ 6WULFNODQG VWDQGDUG LQ FLUFXPVWDQFHV ZKHUH D SHWLWLRQHU DVVHUWHG WKDW KLV

WKDWm$WWRUQH\0XUSK\jVDOOHJHGO\LQFRUUHFWDGYLFHFRXOGQRW FRXQVHO ZDV FRQVWLWXWLRQDOO\ LQHIIHFWLYH IRU HQFRXUDJLQJ KLP WR SOHDG

KDYH LQIOXHQFHG >.RKQjV@ GHFLVLRQ WR DFFHSW D SOHD RIIHU JXLOW\ RU ZKHUH WKH SHWLWLRQHU DOOHJHG WKDW WKH KLV FRXQVHO ZDV FRQVWLWXWLRQDOO\ GHILFLHQW IRU HQFRXUDJLQJ KLP WR UHMHFW D SOHD RIIHU DQG EHFDXVHDVWKH>F@RXUWKDVDOUHDG\LQGLFDWHGWKHUHZDVQHYHU SURFHHG WR WULDO ,Q WKH IRUPHU LQVWDQFH WR SUHYDLO RQ D FODLP RI DQ\SOHDRIIHUWRDFFHSWl LQHIIHFWLYH DVVLVWDQFH WKH FRXUWV UHTXLUHG WKDW WKH SHWLWLRQHU GHPRQVWUDWH WKDW KLV FRXQVHOjV SHUIRUPDQFH ZDV GHILFLHQW DQG WKDW mWKHUH LV D

.RKQ DJDLQ UHOLHV RQ $WWRUQH\ 0XUSK\jV SXUSRUWHGO\ UHDVRQDEOH SUREDELOLW\ WKDW EXW IRU FRXQVHOjV HUURUV KH ZRXOG QRW KDYH

HUURQHRXV DGYLFH UHJDUGLQJ VHQWHQFLQJ H[SRVXUH EXW UH SOHDGHG JXLOW\ DQG ZRXOG KDYH LQVLVWHG RQ JRLQJ WR WULDOl +LOO Y /RFNKDUW  86    &RQYHUVHO\ LQ 7XUQHU Y 7HQQHVVHH FKDUDFWHUL]HV WKH FODLP DV RQH DULVLQJ IURP D FRQIOLFW RI  )G  WK &LU  WKLV &RXUW GHWHUPLQHG WKDW ZKHUH D LQWHUHVW  .RKQ QRZ FRQWHQGV WKDW KH IDLOHG WR H[SUHVV D SHWLWLRQHU FODLPV WKDW KLV FRXQVHO ZDV LQHIIHFWLYH IRU HQFRXUDJLQJ KLP WR ZLOOLQJQHVVWRHQWHULQWRDSOHDDJUHHPHQWEHFDXVHDFRQIOLFWHG UHMHFW D SOHD EDUJDLQ WKH SHWLWLRQHU PXVW GHPRQVWUDWH  GHILFLHQW $WWRUQH\ 0XUSK\ SURYLGHG HUURQHRXV DGYLFH UHJDUGLQJ SHUIRUPDQFH RQ WKH SDUW RI FRXQVHO DQG  mEXW IRU FRXQVHOjV DGYLFH

VHQWHQFLQJ WKHUH LV D UHDVRQDEOH SUREDELOLW\ WKDW KH ZRXOG KDYH SOHDGHG JXLOW\l 7XUQHU  )G DW 

.RKQjV UHFKDUDFWHUL]DWLRQ RI WKH FODLP LV RI VLJQLILFDQW  DQDO\WLFDOLPSRUWEHFDXVHE\FRXFKLQJKLVFODLPLQWHUPVRI :H REVHUYH WKDW 7KRPDV UHTXLUHV WKH SHWLWLRQHU WR ILUVW GHPRQVWUDWH DQ mDFWXDO FRQIOLFW RI LQWHUHVWl DQG WKHQ GHPRQVWUDWH DQ DGYHUVH HIIHFW RQ D FRQIOLFW RI LQWHUHVW .RKQ LQYRNHV DQ HQWLWOHPHQW WR WKH WKH YROXQWDU\ QDWXUH RI WKH JXLOW\ SOHD 7KRPDV  )G DW  ,Q 6XOOLYDQSUHVXPSWLRQRISUHMXGLFH 0LFNHQV WKH 6XSUHPH &RXUW FODULILHG LWV SULRU GHILQLWLRQ RI WKH WHUP mDFWXDO FRQIOLFW RI LQWHUHVWl DV FRPSULVLQJ ERWK UHTXLUHPHQWV RI WKH ,Q7KRPDV)GWKLV&RXUWREVHUYHGWKDWm>M@XVW 6XOOLYDQ WHVW  D FRQIOLFW RI LQWHUHVW DQG DGYHUVH HIIHFW  6 &W DW 

DVWKH6WULFNODQGVWDQGDUGKDVWREHDGDSWHGWRWKHJXLOW\SOHD Q $Q mDFWXDO FRQIOLFW RI LQWHUHVWl WKHUHIRUH LV D WHUP RI DUW UHTXLULQJ D

FRQWH[W VR PXVW WKH &XO\HU >Y 6XOOLYDQ@ VWDQGDUG EH FRQIOLFW RI LQWHUHVW DQG DGYHUVH HIIHFW ,Q H[DPLQLQJ 7KRPDV DQG WKH FDVHV FLWHG WKHUHLQ LW DSSHDUV WKDW WKH mDFWXDO FRQIOLFW RI LQWHUHVWl UHTXLUHG LQ WKH ILUVW SURQJ RI WKH FRXUWjV WHVW UHTXLUHV RQO\ WKDW WKH SHWLWLRQHU GHPRQVWUDWH D UHDO RU JHQXLQH DV RSSRVHG WR D K\SRWKHWLFDO FRQIOLFW RI LQWHUHVW 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

WR UHFRPPHQG UHMHFWLQJ D SOHD PXVW GHPRQVWUDWH  WKDW 7KUHH VDIHJXDUGV DOOHYLDWH DQ\ SRWHQWLDO ZLQGIDOO WR FRXQVHOODERUHGXQGHUDFRQIOLFWRILQWHUHVWDQGWKDWWKH GHIHQGDQWV FRQIOLFW RI LQWHUHVW DGYHUVHO\ DIIHFWHG FRXQVHOjV UHFRPPHQGDWLRQVUHJDUGLQJWKHSOHD&I+DOO)GDW )LUVW WKH IRUHJRLQJ VWDQGDUG DSSOLHV RQO\ LQ WKH OLPLWHG  ILQGLQJ DQ DFWXDO FRQIOLFW RI LQWHUHVW ZKHUH FRXQVHO FRQWH[WRIFRXQVHOjVIDLOXUHWRH[SORUHSOHDQHJRWLDWLRQVDVD MRLQWO\UHSUHVHQWLQJWZREURWKHUVUHMHFWHGDSOHDRIIHUJUDQWLQJ UHVXOWRIDFRQIOLFWRILQWHUHVW7KHVWDQGDUGGHULYHVIURPWKDW RQHEURWKHUDPLQLPDOVHQWHQFHDQGWKHRWKHUEURWKHUDOLIH HVWDEOLVKHGLQ6XOOLYDQZKLFKWKH0LFNHQV&RXUWGHWHUPLQHG VHQWHQFHZLWKSRVVLELOLW\RIDGRZQZDUGGHSDUWXUH7XUQHU ZDVH[FOXVLYHO\OLPLWHGWRVLWXDWLRQVRIMRLQWUHSUHVHQWDWLRQ )GDWH[SDQGLQJ WKH +LOO&RXUWjVPRGLILHG DQGWKHK\EULGVXFFHVVLYHUHSUHVHQWDWLRQSUHVHQWHGDWEDU 6WULFNODQGVWDQGDUGWRFODLPVDOOHJLQJLQHIIHFWLYHDVVLVWDQFH ,Q DOO RWKHU FLUFXPVWDQFHV D SHWLWLRQHU DOOHJLQJ WKDW KLV RI FRXQVHO DULVLQJ IURP FRXQVHOjV DGYLFH WR UHMHFW D SOHD FRXQVHO IDLOHG WR H[SORUH SOHD QHJRWLDWLRQV PXVW IXOILOO WKH RIIHU 7XUQHU VWDQGDUG  GHILFLHQW SHUIRUPDQFH RQ WKH SDUW RI FRXQVHO DQG  mEXW IRU FRXQVHOjV DGYLFH WKHUH LV D .RKQjV FODLPV UHTXLUH DQ DGGLWLRQDO PRGLILFDWLRQ RI UHDVRQDEOH SUREDELOLW\ WKDW KH ZRXOG KDYH SOHDGHG JXLOW\l 7KRPDV7KHVWDQGDUGVSURYLGHGLQ7KRPDVDQGLWVFRUROODU\ 7XUQHU)GDW GLUHFWWKHFRXUWjVLQTXLU\LQWRZKHWKHUWKHFRQIOLFWRILQWHUHVW DGYHUVHO\DIIHFWHGFRXQVHOjVDGYLFHUHJDUGLQJDVSHFLILFSOHD 6HFRQG DV GLVFXVVHG VXSUD +ROORZD\ SURYLGHV DQ RIIHU+HUHDVZHUHSHDWHGO\KDYHDFNQRZOHGJHGWKHUHZDV DGGLWLRQDOVDIHJXDUGLQWKDWWKHSHWLWLRQHUPXVWGHPRQVWUDWH QRSOHDRIIHU+RZHYHUDVZHIXUWKHUKDYHDFNQRZOHGJHG WKDW WKH JRYHUQPHQW ZDV ZLOOLQJ WR DFFHSW RU H[WHQG DQ WKHQRQH[LVWHQFHRIDSOHDRIIHUGRHVQRWSUHFOXGHWKHFRXUW LQYLWDWLRQWRSOHDQHJRWLDWLRQV IURPLQTXLULQJLQWRZKHWKHUWKHFRQIOLFWRILQWHUHVWDGYHUVHO\ DIIHFWHGFRXQVHOjVDELOLW\WRH[SORUHSOHDQHJRWLDWLRQVZLWKWKH )LQDOO\RXUVWDQGDUGGRHVQRWORZHUWKHSHWLWLRQHUjVEXUGHQ JRYHUQPHQW  7KHUHIRUH LQ RUGHU WR SUHYDLO RQ D FODLP RI XQGHU6XOOLYDQ$SHWLWLRQHUZKRDOOHJHVWKDWDFRQIOLFWRI LQHIIHFWLYHDVVLVWDQFHDSHWLWLRQHUDOOHJLQJWKDWDFRQIOLFWRI LQWHUHVWFRPSHOOHGKLVFRXQVHOWRUHIUDLQIURPH[SORULQJSOHD LQWHUHVW SUHYHQWHG KLV DWWRUQH\ IURP H[SORULQJ SOHD QHJRWLDWLRQVVWLOOPXVWGHPRQVWUDWHWKDWDQDFWXDOFRQIOLFWRI QHJRWLDWLRQV PXVW GHPRQVWUDWH  WKHUH ZDV D FRQIOLFW RI LQWHUHVWFDXVHGKLVFRXQVHOWRIRUJRSOHDQHJRWLDWLRQV6HH LQWHUHVW DQG  WKDW WKH FRQIOLFW RI LQWHUHVW SUHYHQWHG WKH 0LFNHQV  6 &W DW  m>7@KH 6XOOLYDQ PDQGDWHG DWWRUQH\IURPH[SORULQJSOHDQHJRWLDWLRQV LQTXLU\GRHVQRWUHGXFHWKHSHWLWLRQHUjVEXUGHQRISURRILW ZDV DW OHDVW QHFHVVDU\ WR YRLG WKH FRQYLFWLRQ IRU WKH :H UHFRJQL]H WKDW ZH PXVW EH FDXWLRXV DQG FDUHIXO LQ SHWLWLRQHUWRHVWDEOLVKWKDWWKHFRQIOLFWRILQWHUHVWDGYHUVHO\ LPSRVLQJ DSSURSULDWH EXUGHQV QRW WR JLYH GHIHQGDQWV HDV\ DIIHFWHG KLV FRXQVHOjV SHUIRUPDQFHl 7KLV FDXVDWLYH DYHQXHV WR REWDLQ D VHFRQG ELWH DW WKH DSSOH DW WKH SHQDOW\ ODQJXDJHRI6XOOLYDQUHTXLUHVWKDWWKHGHIHQGDQWGHPRQVWUDWH VWDJH RQFH WKH\ KDYH DFNQRZOHGJHG JXLOW RU LW KDV EHHQ D QH[XV EHWZHHQ WKH FRQIOLFW DQG WKH DGYHUVH HIIHFW RQ GHWHUPLQHGE\WKHIDFWILQGHUV:HIXUWKHUUHFRJQL]HWKDWWKH FRXQVHOjVSHUIRUPDQFH6HH5LJJV)GDWm5LJJV IRUHJRLQJ VWDQGDUG PD\ HQJHQGHU FRQFHUQV DV WR ZKHWKHU KDV QRW H[SODLQHG DQ\ FDXVDO FRQQHFWLRQ EHWZHHQ &R[jV GHIHQGDQWVZLOOEHHQFRXUDJHGWRGLUHFWFRXQVHOWRIRUJRSOHD IDLOXUHWRUHTXHVWWKHLQVWUXFWLRQDQGKLVSULRU$86$SRVLWLRQ QHJRWLDWLRQV DQG WKHQ VHHN WR RYHUWXUQ WKH VHQWHQFH RQ WKH KLVUHSUHVHQWDWLRQRI'ULVNHOOjVH[ZLIHRUKLVVKDULQJRIILFH EDVLVRIFRXQVHOjVDOOHJHGIDLOXUHWRH[SORUHSOHDQHJRWLDWLRQV VSDFHZLWK.DPHQLVKDQG&KDQGOHUl+RSNLQV)GDW 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

m'HIHQGDQWjVIDLOXUHWRDFFHSWWKHSOHDZDVXQUHODWHGWR :HDGGUHVVHGDVLPLODUVFHQDULRLQ*RQ]DOHVY(OR WKHGXDOUHSUHVHQWDWLRQl )GWK&LU7KHUHWKHSHWLWLRQHUFODLPHGWKDW KHZDVGHQLHGHIIHFWLYHDVVLVWDQFHRIFRXQVHOE\KLVDWWRUQH\jH .RKQjVFODLPIDLOVEHFDXVHWKHUHODFNVDQ\QH[XVEHWZHHQ VIDLOXUHWRLQIRUPKLPWKDWKHFRXOGDVVHUWWKHULJKWWRWHVWLI\ $WWRUQH\ 0XUSK\jV FRQIOLFWHG LQWHUHVWV DQG WKH DOOHJHG GHVSLWHKLVDWWRUQH\jVDGYLFHQRWWRGRVR)GDW HUURQHRXVDGYLFHUHJDUGLQJVHQWHQFLQJ.RKQPHUHO\DOOHJHV 7KH PDJLVWUDWH MXGJHjV UHSRUW ZKLFK ZDV DGRSWHG E\ WKH WKDW $WWRUQH\ 0XUSK\ KDG FRQIOLFWLQJ REOLJDWLRQV DQG GLVWULFW FRXUW VWDWHG WKDW mGHIHQVH FRXQVHO GLG QRW KDYH DQ $WWRUQH\ 0XUSK\ SURYLGHG HUURQHRXV DGYLFH UHJDUGLQJ LQGHSHQGHQW UHFROOHFWLRQ RI WKH VSHFLILF DGYLFH WKDW KH VHQWHQFLQJ.RKQIDLOVWRSURYLGHDQ\VSHFLILFDQGFUHGLEOH UHQGHUHGWR>WKHSHWLWLRQHU@RQWKHLVVXHRIKLVULJKWWRWHVWLI\ HYLGHQFHOLQNLQJ$WWRUQH\0XUSK\jVHUURQHRXVDGYLFHWRWKH 1RQHWKHOHVV>GHIHQVHFRXQVHO@ZDVDEOHWRWHVWLI\DVWRKLV FRQIOLFW RI LQWHUHVW  0RUHRYHU WKH UHFRUG UHYHDOV LQ DQ\ FXVWRPDU\SUDFWLFHZLWKUHJDUGWRDGYLVLQJKLVFOLHQWVRIWKHLU HYHQW WKDW LW ZDV XQOLNHO\ WKDW $WWRUQH\ 0XUSK\ SURYLGHG ULJKWWRWHVWLI\LQFULPLQDOPDWWHUVl,G GHILFLHQW DGYLFH WR .RKQ  7KH GLVWULFW FRXUW TXHVWLRQHG $WWRUQH\0XUSK\GXULQJWKHHYLGHQWLDU\KHDULQJ ,QUHDFKLQJDGHFLVLRQLQ*RQ]DOHVWKLV&RXUWQRWHGWKDWWKH WULDOFRXUWFUHGLWHGWKHGHIHQVHFRXQVHOjVWHVWLPRQ\DVWRKLV 4 >'LG \RX@ GLVFXVV ZLWK 0U .RKQ WKH VWDWXWRU\ FXVWRPDU\ SUDFWLFHV DQG GLVFUHGLWHG WKH WHVWLPRQ\ RI WKH PD[LPXPVHQWHQFHKHZDVIDFLQJLIKHZHQWWRWULDO SHWLWLRQHU,GDW,WWKHQZHQWRQWRILQGWKDWmEHFDXVHWKLV DQGZDVFRQYLFWHGSULRUWRWKHVHFRQGVXSHUFHGLQJ FRXUWGRHVQRWGLVWXUELVVXHVRIFUHGLELOLW\WKHPDJLVWUDWHDQG LQGLFWPHQW" WKHUHIRUHWKHGLVWULFWFRXUWGLGQRWFOHDUO\HUULQPDNLQJKLV ILQGLQJVDQG3HWLWLRQHUjVDUJXPHQWWKXVIDLOVl,G $ 6XUHZHGLVFXVVHGLW 7KH UXOLQJ LQ *RQ]DOHV FRPSHOV WKH VDPH UHVXOW LQ WKH 4

DGYLFH WR .RKQ UHJDUGLQJ SRWHQWLDO PD[LPXP VHQWHQFLQJ RIODZ6HHHJ0F1HDOY8QLWHG6WDWHV)HG$SS[ H[SRVXUH WK &LU  ILQGLQJ QR FRQIOLFW RI LQWHUHVW ZKHUH WKH GHIHQGDQWjVIRUPHUFRXQVHOUHSUHVHQWHGWKHSULPDU\ZLWQHVV .RKQWKHUHIRUHIDLOVWRGHPRQVWUDWHWKDW LWZDV$WWRUQH\ DJDLQVW WKH GHIHQGDQW  $FFRUGLQJO\ 0RVV LV XQDEOH WR 0XUSK\jVVXFFHVVLYHUHSUHVHQWDWLRQVWKDWDGYHUVHO\DIIHFWHG GHPRQVWUDWHWKDW$WWRUQH\0XUSK\ODERUHGXQGHUDFRQIOLFWRI $WWRUQH\ 0XUSK\jV DELOLW\ WR HQWHU LQWR SOHD QHJRWLDWLRQV LQWHUHVW WKDW DGYHUVHO\ DIIHFWHG $WWRUQH\ 0XUSK\jV 5DWKHUWKHODFNRISOHDQHJRWLDWLRQVLQWKLVFDVHGHULYHGIURP SHUIRUPDQFH .RKQjV SURWHVWDWLRQV RI LQQRFHQFH DV ZHOO DV .RKQjV GLVLQFOLQDWLRQWRWHVWLI\DJDLQVW0RVVLQH[FKDQJHIRUVXFKDQ  7KHWULDOFRXUWjVIDLOXUHWRLQTXLUHLQWRWKHDOOHJHG DJUHHPHQW$VVXFK.RKQIDLOHGWRGHPRQVWUDWHWKDW$WWRUQH\ FRQIOLFWRILQWHUHVW 0XUSK\jV FRQIOLFW RI LQWHUHVW GHSULYHG KLP RI KLV FRQVWLWXWLRQDOO\ VHFXUHG ULJKW WR HIIHFWLYH DVVLVWDQFH RI 7KH SHWLWLRQHUV DOOHJH WKDW WKH GLVWULFW FRXUW FRPPLWWHG FRXQVHO$FFRUGLQJO\ZHDIILUPWKHGLVWULFWFRXUWjVGHQLDORI UHYHUVLEOH HUURU E\ IDLOLQJ WR  LQTXLUH LQWR WKH $WWRUQH\ .RKQjVFRQIOLFWRILQWHUHVWFODLP 0XUSK\jV VXFFHVVLYH UHSUHVHQWDWLRQV 8QGHU+ROORZD\ DQG 6XOOLYDQDWULDOFRXUWKDVWKHGXW\WRLQTXLUHDGHTXDWHO\LQWR 0RVVjVDOOHJDWLRQVRIDGYHUVHHIIHFW DWULDOFRXQVHOjVFRQIOLFWRILQWHUHVWLILWNQRZVRUUHDVRQDEO\ VKRXOGNQRZWKDWDSDUWLFXODUFRQIOLFWH[LVWV6HH+ROORZD\ 0RVV DOOHJHV WKDW $WWRUQH\ 0XUSK\jV VXFFHVVLYH 86DWHVWDEOLVKLQJGXW\6XOOLYDQ86DW UHSUHVHQWDWLRQVDGYHUVHO\DIIHFWHGKLVFRXQVHOjVSHUIRUPDQFH  KROGLQJ WKDW D WULDO FRXUW PXVW PDNH DQ LQTXLU\ LI LW LQ WKDW  $WWRUQH\ 0XUSK\ IDLOHG WR H[SORUH SOHD NQRZVRUUHDVRQDEO\VKRXOGNQRZWKDWDSDUWLFXODUFRQIOLFW QHJRWLDWLRQVZLWK$86$sDQLFH$WWRUQH\0XUSK\IDLOHG H[LVWV +RZHYHU mDEVHQW VSHFLDO FLUFXPVWDQFHV     WULDO WRVHHNVHYHUDQFHDQG$WWRUQH\0XUSK\IDLOHGWRSXUVXH FRXUWVPD\DVVXPHHLWKHUWKDWPXOWLSOHUHSUHVHQWDWLRQHQWDLOV DGHIHQVHRIPXOWLSOHFRQVSLUDFLHV QRFRQIOLFWRUWKDWWKHODZ\HUDQGKLVFOLHQWVNQRZLQJO\DFFHSW VXFKULVNRIFRQIOLFWDVPD\H[LVWl6XOOLYDQ86DW 7KH SDWHQW GHILFLHQF\ LQ 0RVVjV DVVHUWLRQV LV WKDW DV GLVFXVVHG VXSUD $WWRUQH\ 0XUSK\ WHUPLQDWHG KLV ,Q 0LFNHQV WKH 6XSUHPH &RXUW UHMHFWHG WKH DSSURDFK RI UHSUHVHQWDWLRQ RI 0RVV VKRUWO\ DIWHU WKH DUUDLJQPHQW VHYHUDOFLUFXLWVZKLFKGHWHUPLQHGWKDWDWULDOFRXUWjVIDLOXUHWR %HFDXVH 0RVV IDLOV WR DOOHJH WKDW $WWRUQH\ 0XUSK\jV LQTXLUHLQWRDFRQIOLFWRILQWHUHVWFRPSHOVDXWRPDWLFUHYHUVDO VXFFHVVLYH UHSUHVHQWDWLRQV DGYHUVHO\ DIIHFWHG KLV RI WKH FRQYLFWLRQ  7KH 0LFNHQV &RXUW KHOG WKDW WKH WULDO UHSUHVHQWDWLRQ GXULQJ WKH SUHDUUDLJQPHQW VWDJH RI WKH FRXUWjVIDLOXUHWRLQTXLUHLQWRDSRWHQWLDOFRQIOLFWRILQWHUHVWRQ SURFHHGLQJV0RVVjVFRQIOLFWRILQWHUHVWFODLPIDLOVDVDPDWWHU WKHSDUWRIWKHGHIHQGDQWjV DWWRUQH\DERXWZKLFKWKHFRXUW NQHZ RU UHDVRQDEO\ VKRXOG KDYH NQRZQ GRHV QRW DXWRPDWLFDOO\UHTXLUHUHYHUVDORIWKHFRQYLFWLRQREVHUYLQJ  %H\RQG RXU IRUHJRLQJ DQDO\VLV ZH QRWH WKDW XQGHU 0LFKLJDQ ODZ D >$@ SURSRVHG UXOH RI DXWRPDWLF UHYHUVDO ZKHQ WKHUH ODZ\HU GLVFRQWLQXHV VHUYLQJ D FOLHQW ZKHQ UHOLHYHG RI WKH REOLJDWLRQ E\ WKH H[LVWHG D FRQIOLFW WKDW GLG QRW DIIHFW FRXQVHOjV FOLHQW RU WKH FRXUW RU XSRQ FRPSOHWLRQ RI D VSHFLILF OHJDO VHUYLFH WKDW WKH

0DGGR[ Y %XUOLQJDPH SHUIRUPDQFH EXW WKH WULDO MXGJH IDLOHG WR PDNH WKH 6XOOLYDQPDQGDWHGLQTXLU\PDNHVOLWWOHSROLF\VHQVH ODZ\HU ZDV UHWDLQHG WR SHUIRUP   0LFK $SS

   7KH UHWHQWLRQ RI DOWHUQDWH FRXQVHO LV VXIILFLHQW SURRI RI

0LWFKHOO Y WKH FOLHQW V LQWHQW WR WHUPLQDWH WKH DWWRUQH\ V UHSUHVHQWDWLRQ 7KHWULDOFRXUWjVDZDUHQHVVRIDSRWHQWLDOFRQIOLFWQHLWKHU 'RXJKHUW\  0LFK $SS    1:G   1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

UHQGHUV LW PRUH OLNHO\ WKDW FRXQVHOjV SHUIRUPDQFH ZDV GHFLVLRQWRGHQ\DKHDULQJIRUDQDEXVHRIGLVFUHWLRQ*UHHQ VLJQLILFDQWO\DIIHFWHGQRULQDQ\ZD\UHQGHUVWKHYHUGLFW Y8QLWHG6WDWHV)GWK&LU XQUHOLDEOH1RUGRHVWKHWULDOMXGJHjVIDLOXUHWRPDNHWKH 6XOOLYDQ PDQGDWHG LQTXLU\ RIWHQ PDNH LW KDUGHU IRU ,QVXSSRUW RI KLVFODLPRIDVHSDUDWHFRQIOLFWRILQWHUHVW UHYLHZLQJ FRXUWV WR GHWHUPLQH FRQIOLFW DQG HIIHFW .RKQ SODFHV SDUWLFXODU HPSKDVLV RQ $86$ sDQLFHjV SDUWLFXODUO\VLQFHWKRVHFRXUWVPD\UHO\RQHYLGHQFHDQG VWDWHPHQWVWRWKHWULDOFRXUW WHVWLPRQ\ZKRVHLPSRUWDQFHRQO\EHFRPHVHVWDEOLVKHGDW WULDO /HW PH VD\ WKLV LV DOVR WKH ILUVW FDVH , KDYH HYHU KDG ZKHUH VR PDQ\ ZLWQHVVHV KDYH FRPH IRUZDUG DQG 0LFNHQV6&WDW,QVXPmWKHWULDOMXGJHjVIDLOXUH LQGLFDWHGZKDW,ZRXOGFRQVLGHULPSURSULHWLHV:HQHHG WRLQTXLUHLQWRDVXVSHFWHGFRQIOLFWLVQRWWKHNLQGRIHUURU JR QR IXUWKHU WKDQ VWDUWLQJ RXW ZLWK 0U 'DYLG sDHJHU UHTXLULQJDSUHVXPSWLRQRISUHMXGLFHl0LFNHQV6&WDW KLPVHOI WKDW LV DOUHDG\ RQ WKH UHFRUG WKDW KH ZDV .HQQHG\sFRQFXUULQJ VROLFLWHG WR FRPH RYHU WR 0U 0XUSK\jV RIILFH E\ 0U 0XUSK\ WKH WZR 'HIHQGDQWV >0RVV DQG .RKQ@ ZHUH $VWKHSHWLWLRQHUVKDYHIDLOHGWRGHPRQVWUDWHWKDWDQDFWXDO ZDLWLQJWKHUHDQGKHZDVVROLFLWHGWKHUHWREULEHDQRWKHU FRQIOLFW RI LQWHUHVW DGYHUVHO\ DIIHFWHG $WWRUQH\ 0XUSK\jV ZLWQHVV,KDYHLQIRUPDWLRQIURPRWKHUZLWQHVVHVDOVR SHUIRUPDQFHZHUHMHFWWKHSHWLWLRQHUVjFODLPWKDWUHYHUVDOLV LQGLFDWLQJWKDWWKH\KDYHEHHQSUHVVXUHGE\YDULRXVRWKHU ZDUUDQWHG E\ WKH WULDO FRXUWjV IDLOXUH WR LQTXLUH LQWR WKH SHRSOH HLWKHU QRW WR WHVWLI\ RU WR WHVWLI\ IDOVHO\ LQ WKLV VXFFHVVLYH UHSUHVHQWDWLRQV  7KH SHWLWLRQHUVj DUJXPHQW FDVH\RXUKRQRU SDUDOOHOV WKDW RI WKH DUJXPHQW H[SUHVVO\ SUHVHQWHG WR DQG UHMHFWHG E\ WKH 0LFNHQV &RXUW  $FFRUGLQJO\ ZH GHQ\ WKH 7KHWULDOMXGJHUHVSRQGHG SHWLWLRQHUVj UHTXHVW IRU DQ DXWRPDWLF UHYHUVDO RI WKHLU FRQYLFWLRQV ,DPPXFKPRUHFRQFHUQHGDERXWZKDW\RXDOOHJHWKDQ DERXWWKHORVVRIWLPH,IWKLVSURFHHGLQJLVJRLQJWREH  &RQIOLFW RI LQWHUHVW DULVLQJ IURP DQ DOOHJHG WDLQWHG RU FORVH WR EHLQJ WDLQWHG E\ SUHVVXUH E\ LQYHVWLJDWLRQLQWR$WWRUQH\0XUSK\jVFRQGXFW LQWLPLGDWLRQE\WKHUHVWRIWKHWKLQJV\RXDOOHJH,WKLQN WKDWVRPHWKLQJVKRXOGEHGRQHE\WKH86$WWRUQH\, .RKQDVVHUWVDVHSDUDWHFRQIOLFW RILQWHUHVWFODLPDULVLQJ ZDQWWRNQRZZKDW\RXDUHGRLQJDERXWLWLI\RXZDQWWR IURP WKH DOOHJHG JRYHUQPHQW LQYHVWLJDWLRQ LQWR $WWRUQH\ WHOOPHQRZEXW,UHDOO\WKLQNWKDW\RXKDYHFDOOHGWRP\ 0XUSK\jVUROHLQVROLFLWLQJsDHJHUWREULEHDSRWHQWLDOZLWQHVV DWWHQWLRQ VRPHWKLQJ WKDW LV H[FHHGLQJO\ VHULRXV .RKQVSHFLILFDOO\DVVHUWVWKDWWKHGLVWULFWFRXUWHUUHGLQIDLOLQJ VRPHWKLQJWKDW,FDQjWOHWSDVW WRFRQGXFWDQHYLGHQWLDU\KHDULQJWRH[SORUHKLVFODLPVWKDW $WWRUQH\0XUSK\ODERUHGXQGHUDQDFWXDOFRQIOLFWRILQWHUHVW 0U0XUSK\WKHQVWDWHG DVDUHVXOWRIWKLVLQYHVWLJDWLRQ , KDG WKRXJKW WKDW 0U sDQLFH KDG EHHQ TXLWH IDLU LQ $GLVWULFWFRXUWVKRXOGJUDQWDKHDULQJRQDKDEHDVSHWLWLRQ FKDUDFWHUL]LQJ WKH XQIRUWXQDWH PHHWLQJ EHWZHHQ 0U mXQOHVV WKH PRWLRQ DQG ILOHV DQG UHFRUGV RI WKH FDVH sDHJHU DQG P\VHOI  7KLV KDG FRPH XS EHIRUH DQG WKH FRQFOXVLYHO\VKRZWKDWWKHSULVRQHULQHQWLWOHGWRQRUHOLHIl UHFRUGVKRXOGUHIOHFWLWKDVDQG,EURXJKWLWWRWKHFRXUWjV  86& †  7KLV FRXUW UHYLHZV WKH GLVWULFW FRXUWjV DWWHQWLRQ 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

 G@RHV WKDW LQYROYH 0U 0XUSK\"l DIDUPRUHVLQLVWHUOLJKWWKDQWKHSULRUDOOHJDWLRQV,IZHjUH $86$sDQLFHUHVSRQGHGm,QHYHUVDLGWKDWl JRLQJWRWU\WKHFDVHLQWKDWOLJKW,ZRQGHUZKHWKHURUQRW ,FDQJRIRUZDUG,PHDQLIKHLVJRLQJWRDFFXVHPHRI ,QDGGLWLRQ$86$sDQLFHWHVWLILHGGXULQJWKHHYLGHQWLDU\ DWWHPSWLQJWREULEHDZLWQHVVRUPHDWWHPSWLQJWRVROLFLWWKH KHDULQJ WKDW WKH 86 $WWRUQH\jV 2IILFH GLG QRW ODXQFK DQ ZLWQHVVHVjVFRRSHUDWLRQWKHQWKDWjVILQHKHFDQGRWKDWDQG LQYHVWLJDWLRQ LQWR $WWRUQH\ 0XUSK\jV DFWLYLWLHV  .RKQ ZLWKKLVRIILFHKHKDVWKHSRZHUWRLQYHVWLJDWHWKDWWRWKH DWWHPSWVWRFLUFXPYHQWWKLVDGYHUVHIDFWE\SODFLQJHPSKDVLV IXOO H[WHQW WKDW KH ZLVKHV WR  %XW , FHUWDLQO\ FDQQRW , RQHYLGHQFHLQGLFDWLQJWKDW$WWRUQH\0XUSK\KDGFRPSODLQHG FHUWDLQO\FDQQRWVHUYHDVFRXQVHOWR0U.RKQLIKHLVJRLQJ RIDQDXGLWE\WKH,QWHUQDO5HYHQXH6HUYLFHm,56l.RKQ WRPDNHWKRVHNLQGRIDOOHJDWLRQV,FDQjWGRLW IDLOV KRZHYHU WR DOOHJH DQ\ QH[XV EHWZHHQ WKH ,56 mLQYHVWLJDWLRQl DQG $WWRUQH\ 0XUSK\jV GHIHQVH RI .RKQ .RKQDOOHJHVWKDW$WWRUQH\0XUSK\jVFRQFHUQVUHJDUGLQJ 0RUHRYHU WKLV &RXUW KDV KHOG WKDW DQ DFWXDO FRQIOLFW RI DQLQYHVWLJDWLRQFUHDWHGDQDFWXDOFRQIOLFWRILQWHUHVWZKHUH LQWHUHVWGRHVQRWDULVHZKHUHWKHFOLHQWDQGWKHDWWRUQH\DUH LQRUGHUWRDYRLGDQLQYHVWLJDWLRQ$WWRUQH\0XUSK\VRXJKWWR EHLQJLQYHVWLJDWHGE\GLIIHUHQWDXWKRULWLHV7D\ORU)G FXUU\ IDYRU ZLWK WKH 86 $WWRUQH\jV 2IILFH E\ IDFLOLWDWLQJ DWFLWLQJ8QLWHG6WDWHVY0F/DLQ)G .RKQjVSURVHFXWLRQ WK&LU  ,WLVZHOOHVWDEOLVKHGWKDWDFRQIOLFWRILQWHUHVWPD\DULVH ,Q DSSDUHQW UHFRJQLWLRQ RI WKH WHQXRXV QDWXUH RI WKHVH ZKHUHGHIHQVHFRXQVHOLVVXEMHFWWRDFULPLQDOLQYHVWLJDWLRQ FODLPV.RKQDOOHJHVWKDWLWZDV$WWRUQH\0XUSK\jVIHDURI 7D\ORUY8QLWHG6WDWHV)GWK&LU,Q EHLQJLQYHVWLJDWHGWKDWFUHDWHGDQDFWXDOFRQIOLFWRILQWHUHVW RUGHUWRHVWDEOLVKDFRQIOLFWRILQWHUHVWKRZHYHUWKHDOOHJLQJ $VHYLGHQFHRI$WWRUQH\0XUSK\jVIHDU.RKQFRQWHQGVWKDW SDUW\ PXVWGHPRQVWUDWHDQH[XVEHWZHHQWKHFULPHVRIWKH $WWRUQH\0XUSK\FRPSODLQHGWRKLP0RVVDQG0RVVjVZLIH FOLHQWDQGWKHDWWRUQH\,G6HHDOVR0D\V)GDW UHJDUGLQJDmIHDURIJRLQJWRMDLOlDQGRIDIHDUWKDWDJHQWV ZHUHVHDUFKLQJKLVRIILFH .RKQjVDUJXPHQWIDLOVWRGHPRQVWUDWHDFRQIOLFWRILQWHUHVW RQVHYHUDOIURQWV)LUVW$86$sDHJHULPPHGLDWHO\FODULILHG 7KHUH ODFNV DQ\ FRQWUROOLQJ DXWKRULW\ WR VXSSRUW WKH RQWKHUHFRUGWKDWKHZDVQRWDFFXVLQJ$WWRUQH\0XUSK\RI SURSRVLWLRQWKDWDQDWWRUQH\jVIHDURILQYHVWLJDWLRQPD\JLYH DQ\LPSURSULHWLHV$86$sDQLFHVWDWHG ULVH WR D FRQIOLFW RI LQWHUHVW $VVXPLQJ DUJXHQGR WKDW ZH ZRXOG HQWHUWDLQ DQ H[WHQVLRQ RI RXU SUHFHGHQW LQWR VXFK D 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

VSHFXODWLYHVFHQDULR.RKQjVFODLPQHYHUWKHOHVVIDLOVEHFDXVH $FFRUGLQJO\ZHGHWHUPLQHWKDWWKHGLVWULFWFRXUWGLGQRW KHFDQQRWGHPRQVWUDWHDQ\DGYHUVHHIIHFWRUSUHMXGLFHDVD DEXVHLWVGLVFUHWLRQLQGHQ\LQJWKHPRWLRQIRUDQHYLGHQWLDU\ UHVXOWRIWKHDOOHJHGFRQIOLFW KHDULQJRQ.RKQjVFODLPVRIDFRQIOLFWRILQWHUHVWDULVLQJIURP WKHVROLFLWDWLRQRIsDHJHU .RKQSUHVHQWVQRGLUHFWHYLGHQFHGHPRQVWUDWLQJDGYHUVH HIIHFW RU SUHMXGLFH  5DWKHU .RKQ LQYLWHV XV WR LQIHU WKDW % ,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO $WWRUQH\0XUSK\jVFRQIOLFWRILQWHUHVWUHVXOWHGLQKLVDWWHPSWV WRIDFLOLWDWHWKHJRYHUQPHQWjVSURVHFXWLRQRI.RKQ:KLOHZH ,QDQWLFLSDWLRQRIDGHFLVLRQILQGLQJDQDEVHQFHRIDFRQIOLFW GHFOLQHWRPDNHWKLVLQIHUHQFHZHQRWHWKDWVXFKDQLQIHUHQFH RILQWHUHVW0RVVDVVHUWVWKDWmLI>KLV@6L[WK$PHQGPHQWULJKW LV XQZDUUDQWHG LQ OLJKW RI WKH HQWLUHW\ RI WKH UHFRUG  ,W LV WR FRQIOLFW IUHH FRXQVHO ZDV QRW YLRODWHG EHFDXVH RI GXDO UHDVRQDEOH WR FRQFOXGH WKDW $WWRUQH\ 0XUSK\ ZRXOG KDYH UHSUHVHQWDWLRQ KLV 6L[WK $PHQGPHQW ULJKW WR HIIHFWLYH XUJHG .RKQ WR HQWHU LQWR SOHD QHJRWLDWLRQV ZLWK WKH DVVLVWDQFH RI FRXQVHO ZDVl 0RVV VSHFLILFDOO\ DOOHJHV WKDW JRYHUQPHQWKDGKHZDQWHGWRLPSURYHKLVVWDQGLQJZLWKWKH $WWRUQH\0RUUHDOHUHQGHUHGLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO 86 $WWRUQH\jV 2IILFH  7R WKH FRQWUDU\ .RKQ DOOHJHV E\ PLVDGYLVLQJ 0RVV UHJDUGLQJ KLV SRWHQWLDO VHQWHQFLQJ WKURXJKRXWWKLVDSSHDOWKDW$WWRUQH\0XUSK\DFWLYHO\VRXJKW H[SRVXUH ZKLFK LQ WXUQ HOLPLQDWHG 0RVVjV LQFHQWLYH WR WR GLVVXDGH KLP IURP H[SORULQJ SRVVLEOH SOHD VFHQDULRV SXUVXHSOHDQHJRWLDWLRQV &RQVHTXHQWO\ WKHUH ODFNV DQ\ LQGLFDWLRQ WKDW $WWRUQH\ 0XUSK\jV IHDU RI D SHQGLQJ LQYHVWLJDWLRQ GHWULPHQWDOO\ $VGLVFXVVHGVXSUDLQWKHDEVHQFHRIDFRQIOLFWRILQWHUHVW LPSDFWHGKLVUHSUHVHQWDWLRQRI.RKQ WKH 6WULFNODQG DQDO\VLV DSSOLHV WR FODLPV RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO LQYROYLQJ FRXQVHOjV DGYLFH RIIHUHG .RKQIXUWKHUDOOHJHVWKDWWKHWULDOFRXUWIDLOHGWRFRQGXFWDQ GXULQJWKHSOHDSURFHVV+LOO86DW'XULQJWKHSOHD DSSURSULDWH FROORTX\ ZLWK .RKQ LQ RUGHU WR HQVXUH mWKH VWDJH WKH GHIHQGDQW KDV WKH ULJKW WR UHO\ RQ FRXQVHO DV D GHIHQGDQWLVIDLUO\DSSULVHGRIWKHSHULOVRIKDYLQJDQDWWRUQH\ PHGLXPEHWZHHQKLPDQGWKHJRYHUQPHQW6HH0DLQHY ZKRIHDUVWKDWKHLVEHLQJLQYHVWLJDWHGLQFRQQHFWLRQZLWKWKH 0RXWRQ  86     +RZHYHU LW LV QRW VDPHLQGLFWPHQWDQGWRDIIRUGWKHGHIHQGDQWWKHRSWLRQWR QHFHVVDU\WKDWWKHGHIHQGDQWKDYHFRXQVHOZKRUHFRPPHQGV FKDQJH FRXQVHOl  $V WKH IRUHJRLQJ DQDO\VLV UHYHDOV WKDW WKDWDSOHDEDUJDLQEHSXUVXHG&I8QLWHG6WDWHVY&URQLF $WWRUQH\0XUSK\GLGQRWODERUXQGHUHYHQDSRWHQWLDOFRQIOLFW 86Qm>(@YHQZKHQWKHUHLVDERQD RI LQWHUHVW DV D UHVXOW RI WKH DOOHJHG LQYHVWLJDWLRQ .RKQjV ILGHGHIHQVHFRXQVHOPD\VWLOODGYLVHKLVFOLHQWWRSOHDGJXLOW\ FODLPVUHJDUGLQJDQ\UHTXLUHGFROORTX\ODFNDQ\IDFWXDORU LIWKDWDGYLFHIDOOVZLWKLQWKHUDQJHRIUHDVRQDEOHFRPSHWHQFH OHJDOPHULW XQGHUWKHFLUFXPVWDQFHVl $IDLOXUHWRSURYLGHSURIHVVLRQDOJXLGDQFHWRDGHIHQGDQW UHJDUGLQJKLVVHQWHQFHH[SRVXUHSULRUWRDSOHDPD\FRQVWLWXWH GHILFLHQWDVVLVWDQFH0DJDQDY+RIEDXHU)G WK&LUFLWDWLRQRPLWWHG$VGLVFXVVHGVXSUDZKHUH  $V ZH KDYH GLVFXVVHG VXSUD  WKH 0LFNHQV UDWLRQDOH FRPSHOV RXU D GHIHQGDQW DOOHJHV WKDW KLV FRXQVHO IDLOHG WR SURYLGH VXFK VWURQJ KHVLWDWLRQ WR DSSO\ 6XOOLYDQ WR FRQIOLFWV RI LQWHUHVW FDVHV DULVLQJ JXLGDQFHDPRGLILHG6WULFNODQGVWDQGDUGDSSOLHVUHTXLULQJWKH RXWVLGH RI WKH MRLQW UHSUHVHQWDWLRQ FRQWH[W +RZHYHU ZH QHHG QRW GHFLGH ZKHWKHU WR DSSO\ 6XOOLYDQ RU 6WULFNODQG WR WKH LQVWDQW IDFWV EHFDXVH DV GHIHQGDQW WR SURYH  WKDW KLV FRXQVHOjV SHUIRUPDQFH ZDV GLVFXVVHG LQIUD .RKQ KDV IDLOHG WR VDWLVI\ WKH VHFRQG SURQJ RI HLWKHU REMHFWLYHO\ GHILFLHQW DQG  WKDW EXW IRU KLV FRXQVHOjV VWDQGDUG 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

HUURQHRXV DGYLFH WKHUH LV D UHDVRQDEOH SUREDELOLW\ WKDW KH :HGLVFXVVHG>DSOHD@>2@QHYHU\FULPLQDOFDVH,WU\ ZRXOGKDYHDFFHSWHGDSOHD,G WRGHYHORSLWLQWZRZD\V,ORRNDWLWIURPDSHUVSHFWLYH RISRVVLEOHSOHDQHJRWLDWLRQGRZQWKHOLQHZKLOHLQWKH 7KHGLVWULFWFRXUWUHMHFWHG0RVVjVDVVHUWLRQVUHJDUGLQJWKH EDFNRIP\PLQGDOZD\VJHWWLQJDFDVHUHDG\IRUWULDOLQ IDLOXUH WR SXUVXH SOHD QHJRWLDWLRQV EDVHG LQ SDUW RQ LWV FDVH VRPHWKLQJ VKRXOG IDOO WKURXJK  , GLVFXVVHG WKH ILQGLQJ WKDW 0RVV ZDV XQZLOOLQJ WR HQWHU LQWR D SOHD SRVVLELOLW\ ZLWK >0RVV@ DQG LW EHFDPH DSSDUHQW WR PH DJUHHPHQW7KHGLVWULFWFRXUWVWDWHG LPPHGLDWHO\WKDWKHZDVQjWJRLQJWRSOHDGQRPDWWHUZKDW WKHRIIHUZDVDQGQRPDWWHUZKDW,FRXOGQHJRWLDWHIRU >7@KHmUHOHYDQWIDFWRUVlLQWKLVFDVHZDUUDQWDJDLQVWD KLPRUQRPDWWHUKRZJRRGWKHRIIHUZDVDQG,KDGQR ILQGLQJRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHO>0RVV@ UHDVRQWRGRXEWKLP7KHGHIHQVHZDVKHZDVLQQRFHQW DVVHUWV WKDW KDG $WWRUQH\ 0RUUHDOH LQLWLDWHG SOHD DQGWKDWjVKRZZHZRUNHGWKLVILOHFRPSOHWHO\ QHJRWLDWLRQVWKH*RYHUQPHQWZRXOGKDYHRIIHUHGDSOHD DJUHHPHQWWKDWZRXOGKDYHEHHQDFFHSWDEOHWR>0RVV@ $WWRUQH\0RUUHDOHIXUWKHUWHVWLILHGWKDW0RVVmZDVQjWJRLQJ ,QVXSSRUWRIWKLVFRQWHQWLRQ>0RVV@GLUHFWVWKH>F@RXUWjV WRSOHDGQRPDWWHUZKDWlDQGWKHUHIRUHWKDWmWKHUHZDVQR DWWHQWLRQ WR WKH SOHD DJUHHPHQWV HQWHUHG LQWR E\ FR SRLQWLQGLVFXVVLQJDSOHDRIIHUZLWKWKHJRYHUQPHQWl GHIHQGDQWV1HZHOODQGsDHJHU7KHUHLVDEVROXWHO\QR FUHGLEOHHYLGHQFHLQWKLVUHFRUGWKDWOHDGVWKH>F@RXUWWR 6LPLODU WR .RKQjV DVVHUWLRQV LQ WKH FRQIOLFW RI LQWHUHVW EHOLHYHWKDW>0RVV@ZRXOGKDYHDFFHSWHGDVLPLODUSOHD FRQWH[W0RVVFRQFHGHVKLVODFNRILQWHUHVWLQSXUVXLQJSOHD DJUHHPHQWKDGLWEHHQRIIHUHG QHJRWLDWLRQVEXWDOOHJHVWKDW$WWRUQH\0RUUHDOHmHOLPLQDWHG WKH SRVVLELOLW\ RI 0RVVjV FRQWHPSODWLQJ D SOHD RIIHU E\ 7KH GLVWULFW FRXUW IXUWKHU DFFHSWHG mWKH WHVWLPRQ\ RI VXSSUHVVLQJDQGHOLPLQDWLQJ0RVVjVLQFHQWLYHWRH[SORUHVXFK $WWRUQH\ 0RUUHDOH WKDW WKURXJKRXW ERWK SUHWULDO DQG WULDO D SRVVLELOLW\ WKURXJK FRXQVHOjV JURVVO\ LQDFFXUDWH >0RVV@PDLQWDLQHGWKDWKHZDVLQQRFHQWRIWKHFKDUJHVDQG XQUHVHDUFKHG DQG LJQRUDQW DGYLFH UHJDUGLQJ 0RVVjV YRLFHGKLVUHIXVDOWRFRRSHUDWHZLWKWKHJRYHUQPHQWl7KH VHQWHQFLQJH[SRVXUHl0RVVVSHFLILFDOO\DOOHJHVWKDWmEDVHG GLVWULFWFRXUWFRQFOXGHGm>E@DVHGXSRQWKHHYLGHQFHSUHVHQWHG XSRQKLVDWWRUQH\jVDGYLFHWKDWKHFRXOGQRWUHFHLYHPRUHWKDQ GXULQJ WKH HYLGHQWLDU\ KHDULQJ WKLV >F@RXUW LV VDWLVILHG WKDW DQGWKHQ\HDUV0U0RVVFKRVHWRH[HUFLVHKLVULJKWWR XQGHUWKHFLUFXPVWDQFHV$WWRUQH\0RUUHDOHjVFRQGXFWGXULQJ JRWRWULDOZLWKSURSHUDGYLFHKLVSRVLWLRQZRXOGKDYHEHHQ WKHSOHDVWDJHGLGQRWIDOOEHORZWKDWRIFRPSHWHQWFRXQVHO UDGLFDOO\GLIIHUHQWDQGKHZRXOGKDYHZDQWHGKLVDWWRUQH\WR 7KH>F@RXUWLVDOVRVDWLVILHGWKDW>0RVV@KDVIDLOHGWRHVWDEOLVK SXUVXHSOHDEDUJDLQSRVVLELOLWLHVl SUHMXGLFHl 0RVVjV DUJXPHQW IDLOV EHFDXVH WKH UHFRUG LQGLFDWHV WKDW 2QDSSHDO0RVVIDLOVWRSURGXFHDQ\VSHFLILFDQGFUHGLEOH $WWRUQH\ 0RUUHDOH SURYLGHG 0RVV ZLWK FRPSHWHQW DGYLFH HYLGHQFH LQGLFDWLQJ WKDW $WWRUQH\ 0RUUHDOH UHQGHUHG UHJDUGLQJ WKH VHQWHQFLQJ JXLGHOLQHV  &RQWUDU\ WR WKH LQHIIHFWLYHDVVLVWDQFHE\QRWH[SORULQJSOHDQHJRWLDWLRQVZLWK DOOHJDWLRQVSUHVHQWHGRQDSSHDO0RVVH[SOLFLWO\WHVWLILHGWKDW $86$sDQLFH$WWRUQH\0RUUHDOHUHSHDWHGO\WHVWLILHGWKDWKH $WWRUQH\0RUUHDOHGLGQRWSURYLGHDQ\PLVDGYLFHUHJDUGLQJ LQLWLDOO\FRQVLGHUHGHQJDJLQJLQSOHDQHJRWLDWLRQVZLWK$86$ 0RVVjVSRWHQWLDOVHQWHQFH,QDGGLWLRQ$WWRUQH\0RUUHDOH sDQLFH EXW DEDQGRQHG WKH VWUDWHJ\ DIWHU 0RVV GLVSOD\HG D WHVWLILHGWKDWKHZDVmFHUWDLQlWKDWKHPDGHWKHFDOFXODWLRQRI UHVROXWHXQZLOOLQJQHVVWRHQWHULQWRDSOHDDJUHHPHQWZLWKWKH 0RVVjVSRWHQWLDOH[SRVXUHSXUVXDQWWRWKHJXLGHOLQHVDQGWKDW JRYHUQPHQW$WWRUQH\0RUUHDOHVSHFLILFDOO\WHVWLILHG LWZDVKLVJHQHUDOSUDFWLFHWRmVLWGRZQZLWKHYHU\FOLHQWDQG 1RV 0RVVHWDOY   0RVVHWDOY 1RV 8QLWHG6WDWHV 8QLWHG6WDWHV

JR RYHU WKH JXLGHOLQHVl  $WWRUQH\ 0RUUHDOH DOVR UHFDOOHG WKRVHILOHGE\WKHLQVWDQWSHWLWLRQHUV6HH*RRGHY8QLWHG GLVFXVVLQJ WKH FRQVHTXHQFHV RI D JXLOW\ SOHD ZLWK 0RVV 6WDWHV)GWK&LU SDUWLFXODUO\ WKH VFHQDULR WKDW 0RVV FRXOG DFKLHYH D OHVVHU VHQWHQFH DV D UHVXOW RI D GHGXFWLRQ IRU DFFHSWDQFH RI $FFRUGLQJO\WKHSHWLWLRQHUVjSURSRVHGDPHQGPHQWWRDGG UHVSRQVLELOLW\ DQ $SSUHQGL FODLP ZDV IXWLOH DQG WKH GLVWULFW FRXUW DSSURSULDWHO\GHQLHGWKHPRWLRQSXUVXDQWWR)(' 5 &,9 3  :HGHWHUPLQHWKDW0RVVjVFODLPVRILQHIIHFWLYHDVVLVWDQFH DUHXQUHDVRQDEOHLQOLJKWRI$WWRUQH\0RUUHDOHjVWHVWLPRQ\ 9 &21&/86,21 UHJDUGLQJWKHVSHFLILFGLVFXVVLRQVEHWZHHQKLPDQG0RVVDV ZHOO DV KLV WHVWLPRQ\ FRQFHUQLQJ KLV JHQHUDO FXVWRP DQG ,QFRQFOXVLRQZHKROGWKDWWKHSHWLWLRQHUVKDYHIDLOHGWR SUDFWLFHV6HH*RQ]DOHV)GDW0RUHRYHUWKH GHPRQVWUDWH WKDW D FRQIOLFW RI LQWHUHVW UHQGHUHG GHIHQVH GLVWULFWFRXUWH[SOLFLWO\TXHVWLRQHGWKHFUHGLELOLW\RI0RVVjV FRXQVHOjV SHUIRUPDQFH FRQVWLWXWLRQDOO\ LQDGHTXDWH  2XU WHVWLPRQ\  7KHUHIRUH ZH DIILUP WKH GLVWULFW FRXUWjV GHFLVLRQVKRXOGQRWEHFRQVWUXHGKRZHYHUDVDQDSSURYDORI GHWHUPLQDWLRQ WKDW $WWRUQH\ 0RUUHDOH SURYLGHG UHDVRQDEO\ $WWRUQH\0XUSK\jVFRQGXFW+LVVXFFHVVLYHUHSUHVHQWDWLRQV FRPSHWHQWUHSUHVHQWDWLRQWR0RVV RIWKHSHWLWLRQHUVDVZHOODVKLVLQYROYHPHQWLQDVXVSHFWIHH DUUDQJHPHQWZLWKDFRFRQVSLUDWRUVWUDLQWRWKHLUYHU\OLPLWV & $SSUHQGL WKHERXQGDULHVRISURIHVVLRQDOFRQGXFW1HYHUWKHOHVVIRUWKH UHDVRQV VWDWHG LQ WKH IRUHJRLQJ RSLQLRQ ZH DUH XQDEOH WR 7KHSHWLWLRQHUVjILQDOFODLPLVWKDWGLVWULFWFRXUW HUUHGLQ FRQFOXGHWKDW$WWRUQH\0XUSK\jVODFNRISURIHVVLRQDOFRQGXFW GHQ\LQJWKHLUUHTXHVWVIRUOHDYHWRDPHQGWKHLUPRWLRQVWR UHQGHUHGWKHUHVXOWRIWKHVHSURFHHGLQJVIXQGDPHQWDOO\XQIDLU DOOHJHDFODLPSXUVXDQWWR$SSUHQGLY1HZsHUVH\86    7KH GLVWULFW FRXUW GHQLHG WKH SURSRVHG $FFRUGLQJO\ZH$)),50WKHGHFLVLRQRIWKHGLVWULFWFRXUW DPHQGPHQWUHDVRQLQJm>E@HFDXVH$SSUHQGLGRHVQRWDSSO\ UHWURDFWLYHO\ WR FDVHV RQ FROODWHUDO UHYLHZ     WKH FODLPV >S@HWLWLRQHUV VHHN WR DVVHUW E\ DPHQGPHQW DUH IXWLOH DQG WKHUHIRUH>S@HWLWLRQHUVjPRWLRQVIRUOHDYHWRDPHQGVKDOOEH GHQLHGl )HGHUDO5XOHRI&LYLO3URFHGXUHDVWDWHVWKDWOHDYHWR DPHQG D SOHDGLQJ VKDOO EH IUHHO\ JLYHQ mZKHQ MXVWLFH VR UHTXLUHVl) 5 &,9 3  D+RZHYHUWKHGLVWULFWFRXUW PD\GHQ\OHDYHWRDPHQGLIWKHSURSRVHGDPHQGPHQWZRXOG EHIXWLOH+HDGYsHOOLFR+RXV$XWK)G WK&LUTXRWLQJ+DJHPDQY6LJQDO/3*DV,QF )GWK&LU  7KHGLVWULFWFRXUWSURSHUO\GHQLHGWKHSHWLWLRQHUVjUHTXHVWV RQJURXQGVRIIXWLOLW\:KLOHWKLVFDVHZDVSHQGLQJDSDQHORI WKLV &RXUW GHWHUPLQHG WKDW WKH UXOH RI $SSUHQGL LV QRW UHWURDFWLYHO\DSSOLFDEOHWRDQLQLWLDO†PRWLRQVVXFKDV