Re/Max Intl Inc v. Realty One, Inc.
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(0$; ,17(51$7,21$/ ; ,1& HWDO 3ODLQWLIIV$SSHOOHHV 1R 5(0$; 1257+($67 2+,2 ! /,0,7(' 3$571(56+,3 HWDO ,QWHUYHQRUV$SSHOOHHV Y 5($/7< 21( ,1& 'HIHQGDQW$SSHOODQW 60<7+( &5$0(5 &203$1< 'HIHQGDQW 1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ 1RnsDPHV6*ZLQ'LVWULFWsXGJH $UJXHGsXO\ 'HFLGHGDQG)LOHG1RYHPEHU
5H0D[,QWjO,QFHWDOY 1R 5HDOW\2QH,QFHWDO
%HIRUH&/$<*,/0$1DQG:$//$&(&LUFXLW sXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 7KRPDV 2 *RUPDQ 3257(5 :5,*+7 0255,6 $57+85 :DVKLQJWRQ '& IRU $SSHOODQW 'DQLHO + %URPEHUJ s21(6 '$< 5($9,6 32*8( :DVKLQJWRQ'&IRU$SSHOOHHV21%5,()7KRPDV2 *RUPDQ 3257(5 :5,*+7 0255,6 $57+85 :DVKLQJWRQ '& +XJK ( 0F.D\ *LQD / 6FKDHFKHU 3257(5 :5,*+7 0255,6 $57+85 &OHYHODQG 2KLR IRU $SSHOODQW 'DQLHO + %URPEHUJ s21(6 '$< 5($9,6 32*8(:DVKLQJWRQ'&0DUNs$QGUHLQL s21(6 '$< 5($9,6 32*8( &OHYHODQG 2KLR (GZDUG : &RFKUDQ &2&+5$1 &2&+5$1 6KDNHU +HLJKWV2KLRIRU$SSHOOHHV &/$< s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK *,/0$1sMRLQHG:$//$&(sSSGHOLYHUHG DVHSDUDWHGLVVHQWLQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB &/$< &LUFXLW sXGJH 'HIHQGDQW 5HDOW\ 2QH ,QF m5HDOW\ 2QHl DSSHDOV WKH GLVWULFW FRXUWjV VXPPDU\ HQIRUFHPHQWRIDVHWWOHPHQWDJUHHPHQWLQWKLVDQWLWUXVWDFWLRQ LQVWLWXWHGE\ULYDOQRUWKHDVW2KLRUHDOHVWDWHEURNHUDJHILUP 5(0$;,QWHUQDWLRQDO,QFm5(0$;l$IWHUWKHSDUWLHV UHDFKHGDVHWWOHPHQWDJUHHPHQWWKHGLVWULFWFRXUWGLVPLVVHG WKHFDVHZLWKSUHMXGLFHZLWKRXWLQFRUSRUDWLQJWKHWHUPVRIWKH
7KH +RQRUDEOH s &OLIIRUG :DOODFH &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH 1LQWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO
DJUHHPHQW LQWR LWV RUGHU RU H[SOLFLWO\ VWDWLQJ WKDW LW ZDV UHWDLQLQJ MXULVGLFWLRQ WR HQIRUFH WKRVH WHUPV 2Q DSSHDO 5HDOW\ 2QH FKDOOHQJHV WKH GLVWULFW FRXUWjV MXULVGLFWLRQ WR HQIRUFHWKHVHWWOHPHQWDJUHHPHQW5HDOW\2QHDOVRFRQWHQGV WKDW HYHQ DVVXPLQJ WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ WR HQIRUFHWKHVHWWOHPHQWDJUHHPHQWLWDEXVHGLWVGLVFUHWLRQE\ QRW OLPLWLQJ LWV RUGHU WR WKH WHUPV LQ WKH WUDQVFULSW RI WKH VHWWOHPHQW SURFHHGLQJV )RU WKH UHDVRQV WKDW IROORZ ZH $)),50WKHGLVWULFWFRXUWjVMXGJPHQW %$&.*5281' $,QLWLDO3URFHHGLQJV 5(0$;LVDIUDQFKLVRURIDUHDOHVWDWHEURNHUDJHV\VWHP ZKLFK LW VHOOV WR IUDQFKLVHHV DFURVV WKH QDWLRQ LQFOXGLQJ QRUWKHDVW2KLR,QWHUYHQRU5(0$;1RUWKHDVW2KLR/LPLWHG 3DUWQHUVKLSLVWKH5(0$;VXEIUDQFKLVRUIRUWKHQRUWKHDVW 2KLRUHJLRQZKLFKFRQVLVWVRI&OHYHODQGDQGWKHVXUURXQGLQJ DUHD'HIHQGDQWV5HDOW\2QHDQG6P\WKH&UDPHU&RPSDQ\ m6P\WKH &UDPHUl DUH WKH ODUJHVW UHDO HVWDWH EURNHUDJH FRPSDQLHV LQ QRUWKHDVW 2KLR LQ WHUPV RI PDUNHW VKDUH 5(0$;ILOHGVXLWDJDLQVW5HDOW\2QHDQG6P\WKH&UDPHU LQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH1RUWKHUQ'LVWULFWRI 2KLRDOOHJLQJWKDWWKHLUSUDFWLFHRISD\LQJEURNHUVDVVRFLDWHG ZLWK 5(0$;jV IUDQFKLVHHV ORZHU FRPPLVVLRQV RQ VSOLW FRPPLVVLRQWUDQVDFWLRQVYLRODWHGWKH6KHUPDQ$QWLWUXVW$FW DQG DQDORJRXV VWDWH ODZV 7KLV SUDFWLFH ZDV NQRZQ DV DQ mDGYHUVHVSOLWlDQGZDVDOOHJHGO\GHVLJQHGWRGULYH5(0$; RXWRIEXVLQHVVLQQRUWKHUQ2KLRE\GHWHUULQJLWVDJHQWVIURP GRLQJ EXVLQHVV WKHUH 7KH FDVH ZDV LQLWLDOO\ DVVLJQHG WR
7KH VWDQGDUG SUDFWLFH LQ WKH UHDOHVWDWH LQGXVWU\ LV WKDW FRPPLVVLRQV DUH VSOLW HTXDOO\ ZKHQ RQH EURNHU EULQJV WKH VHOOHU DQG DQRWKHU EURNHU EULQJV WKH EX\HU WR D WUDQVDFWLRQ +RZHYHU EHJLQQLQJ LQ 5HDOW\ 2QH DQG 6P\WKH &UDPHU EHJDQ QRWLI\LQJ 5(0$; EURNHUDJHV WKDW WKHUH ZRXOG EH DQ DGYHUVH VSOLW RI RU LQ IDYRU RI WKH GHIHQGDQWV ZKHQHYHU D 5(0$; DJHQW ZDV RQ WKH RWKHU VLGH RI WKH WDEOH IURP D 5HDOW\ 2QH RU 6P\WKH &UDPHU DJHQW 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO
Free access — add to your briefcase to read the full text and ask questions with AI
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(0$; ,17(51$7,21$/ ; ,1& HWDO 3ODLQWLIIV$SSHOOHHV 1R 5(0$; 1257+($67 2+,2 ! /,0,7(' 3$571(56+,3 HWDO ,QWHUYHQRUV$SSHOOHHV Y 5($/7< 21( ,1& 'HIHQGDQW$SSHOODQW 60<7+( &5$0(5 &203$1< 'HIHQGDQW 1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ 1RnsDPHV6*ZLQ'LVWULFWsXGJH $UJXHGsXO\ 'HFLGHGDQG)LOHG1RYHPEHU
5H0D[,QWjO,QFHWDOY 1R 5HDOW\2QH,QFHWDO
%HIRUH&/$<*,/0$1DQG:$//$&(&LUFXLW sXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 7KRPDV 2 *RUPDQ 3257(5 :5,*+7 0255,6 $57+85 :DVKLQJWRQ '& IRU $SSHOODQW 'DQLHO + %URPEHUJ s21(6 '$< 5($9,6 32*8( :DVKLQJWRQ'&IRU$SSHOOHHV21%5,()7KRPDV2 *RUPDQ 3257(5 :5,*+7 0255,6 $57+85 :DVKLQJWRQ '& +XJK ( 0F.D\ *LQD / 6FKDHFKHU 3257(5 :5,*+7 0255,6 $57+85 &OHYHODQG 2KLR IRU $SSHOODQW 'DQLHO + %URPEHUJ s21(6 '$< 5($9,6 32*8(:DVKLQJWRQ'&0DUNs$QGUHLQL s21(6 '$< 5($9,6 32*8( &OHYHODQG 2KLR (GZDUG : &RFKUDQ &2&+5$1 &2&+5$1 6KDNHU +HLJKWV2KLRIRU$SSHOOHHV &/$< s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK *,/0$1sMRLQHG:$//$&(sSSGHOLYHUHG DVHSDUDWHGLVVHQWLQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB &/$< &LUFXLW sXGJH 'HIHQGDQW 5HDOW\ 2QH ,QF m5HDOW\ 2QHl DSSHDOV WKH GLVWULFW FRXUWjV VXPPDU\ HQIRUFHPHQWRIDVHWWOHPHQWDJUHHPHQWLQWKLVDQWLWUXVWDFWLRQ LQVWLWXWHGE\ULYDOQRUWKHDVW2KLRUHDOHVWDWHEURNHUDJHILUP 5(0$;,QWHUQDWLRQDO,QFm5(0$;l$IWHUWKHSDUWLHV UHDFKHGDVHWWOHPHQWDJUHHPHQWWKHGLVWULFWFRXUWGLVPLVVHG WKHFDVHZLWKSUHMXGLFHZLWKRXWLQFRUSRUDWLQJWKHWHUPVRIWKH
7KH +RQRUDEOH s &OLIIRUG :DOODFH &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH 1LQWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO
DJUHHPHQW LQWR LWV RUGHU RU H[SOLFLWO\ VWDWLQJ WKDW LW ZDV UHWDLQLQJ MXULVGLFWLRQ WR HQIRUFH WKRVH WHUPV 2Q DSSHDO 5HDOW\ 2QH FKDOOHQJHV WKH GLVWULFW FRXUWjV MXULVGLFWLRQ WR HQIRUFHWKHVHWWOHPHQWDJUHHPHQW5HDOW\2QHDOVRFRQWHQGV WKDW HYHQ DVVXPLQJ WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ WR HQIRUFHWKHVHWWOHPHQWDJUHHPHQWLWDEXVHGLWVGLVFUHWLRQE\ QRW OLPLWLQJ LWV RUGHU WR WKH WHUPV LQ WKH WUDQVFULSW RI WKH VHWWOHPHQW SURFHHGLQJV )RU WKH UHDVRQV WKDW IROORZ ZH $)),50WKHGLVWULFWFRXUWjVMXGJPHQW %$&.*5281' $,QLWLDO3URFHHGLQJV 5(0$;LVDIUDQFKLVRURIDUHDOHVWDWHEURNHUDJHV\VWHP ZKLFK LW VHOOV WR IUDQFKLVHHV DFURVV WKH QDWLRQ LQFOXGLQJ QRUWKHDVW2KLR,QWHUYHQRU5(0$;1RUWKHDVW2KLR/LPLWHG 3DUWQHUVKLSLVWKH5(0$;VXEIUDQFKLVRUIRUWKHQRUWKHDVW 2KLRUHJLRQZKLFKFRQVLVWVRI&OHYHODQGDQGWKHVXUURXQGLQJ DUHD'HIHQGDQWV5HDOW\2QHDQG6P\WKH&UDPHU&RPSDQ\ m6P\WKH &UDPHUl DUH WKH ODUJHVW UHDO HVWDWH EURNHUDJH FRPSDQLHV LQ QRUWKHDVW 2KLR LQ WHUPV RI PDUNHW VKDUH 5(0$;ILOHGVXLWDJDLQVW5HDOW\2QHDQG6P\WKH&UDPHU LQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH1RUWKHUQ'LVWULFWRI 2KLRDOOHJLQJWKDWWKHLUSUDFWLFHRISD\LQJEURNHUVDVVRFLDWHG ZLWK 5(0$;jV IUDQFKLVHHV ORZHU FRPPLVVLRQV RQ VSOLW FRPPLVVLRQWUDQVDFWLRQVYLRODWHGWKH6KHUPDQ$QWLWUXVW$FW DQG DQDORJRXV VWDWH ODZV 7KLV SUDFWLFH ZDV NQRZQ DV DQ mDGYHUVHVSOLWlDQGZDVDOOHJHGO\GHVLJQHGWRGULYH5(0$; RXWRIEXVLQHVVLQQRUWKHUQ2KLRE\GHWHUULQJLWVDJHQWVIURP GRLQJ EXVLQHVV WKHUH 7KH FDVH ZDV LQLWLDOO\ DVVLJQHG WR
7KH VWDQGDUG SUDFWLFH LQ WKH UHDOHVWDWH LQGXVWU\ LV WKDW FRPPLVVLRQV DUH VSOLW HTXDOO\ ZKHQ RQH EURNHU EULQJV WKH VHOOHU DQG DQRWKHU EURNHU EULQJV WKH EX\HU WR D WUDQVDFWLRQ +RZHYHU EHJLQQLQJ LQ 5HDOW\ 2QH DQG 6P\WKH &UDPHU EHJDQ QRWLI\LQJ 5(0$; EURNHUDJHV WKDW WKHUH ZRXOG EH DQ DGYHUVH VSOLW RI RU LQ IDYRU RI WKH GHIHQGDQWV ZKHQHYHU D 5(0$; DJHQW ZDV RQ WKH RWKHU VLGH RI WKH WDEOH IURP D 5HDOW\ 2QH RU 6P\WKH &UDPHU DJHQW 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO
'LVWULFW sXGJH 'DYLG 'RZG ZKR JUDQWHG 'HIHQGDQWVj LQWHQW GLIIHUHQW IURP WKH SODLQ ODQJXDJH RI WKH RUGHU ZKHQ PRWLRQV IRU VXPPDU\ MXGJPHQW DV WR VRPH RI 5(0$;jV WKHUH LV QR HYLGHQFH RI WKDW LQWHQW FRQWHPSRUDQHRXV WR WKH FODLPV6HH5(0$;,QWjO,QFY5HDOW\2QH,QF) GLVPLVVDO RUGHU ,W PD\ EH DOWKRXJK , KDYH FRQVLGHUDEOH 6XSS1'2KLR5(0$;DSSHDOHGDQG5HDOW\ GRXEWWKDWDORRNEH\RQGWKHODQJXDJHRIWKHGLVPLVVDORUGHU 2QHFURVVDSSHDOHG:HUHYHUVHGLQSDUWDQGUHPDQGHGIRU WRWKHDVVXPHGGLVWULFWMXGJHjVLQWHQWZRXOGEHDSSURSULDWHLI IXUWKHUSURFHHGLQJV6HH5(0$;,QWjO,QFY5HDOW\2QH WKHGLVPLVVDORUGHUZHUHDPELJXRXVDQGLIWKHUHZDVVWURQJ ,QF)GWK&LU FLUFXPVWDQWLDOHYLGHQFHDWWKHWLPHRIWKHRUGHUWKDWDGLVWULFW MXGJHGLGLQGHHGKDYHDFHUWDLQLQWHQW%XWVXFKLVQRWWKH 7KHFDVHSURFHHGHGWRWULDORQ$SULOsXGJH'RZG FDVHKHUH7KHGLVPLVVDORUGHUjVODQJXDJHLVXQDPELJXRXV ELIXUFDWHGWKHWULDO$IWHUWKHSUHVHQWDWLRQRIWKHHYLGHQFH DQGWKHUHLVQRVXFKFLUFXPVWDQWLDOHYLGHQFH7RWKHH[WHQW sXGJH 'RZG LQVWUXFWHG WKH MXU\ WR ILUVW GHFLGH ZKHWKHU WKH FDVHV RI RXU VLVWHU FLUFXLWV FLWHG E\ WKH PDMRULW\ DUH 'HIHQGDQWVKDGHQWHUHGDQDJUHHPHQWWRLVVXHDGYHUVHVSOLWV LQFRQVLVWHQWZLWKWKLVYLHZ,ZRXOGGLVUHJDUGWKHP ZKLFK ZDV DQ HVVHQWLDO HOHPHQW RI 5(0$;jV IHGHUDO DQWLWUXVWFODLP)ROORZLQJGHOLEHUDWLRQVWKHMXU\UHWXUQHGD )HGHUDOMXULVGLFWLRQLVDSUHFLVHGRFWULQH,WGRHVQRWH[LVW YHUGLFW ILQGLQJ WKDW 5HDOW\ 2QH DQG 6P\WKH &UDPHU KDG KHUH,ZRXOGUHO\XSRQWKHUHDVRQLQJLQ.RNNRQHQDQGRXU LOOHJDOO\DJUHHGWRUHVWUDLQWUDGHsXGJH'RZGWKHQLQVWUXFWHG RZQ FDVH ODZ DQG KROG WKDW WKH GLVWULFW FRXUW GLG QRW KDYH WKHMXU\WRFRQVLGHUDGGLWLRQDOHOHPHQWVRI5(0$;jVFODLPV MXULVGLFWLRQWRHQIRUFHWKHVHWWOHPHQWDJUHHPHQW5(0$; 'XULQJ GHOLEHUDWLRQV RQ WKHVH LVVXHV WKH MXURUV SRVHG D VKRXOGKDYHEURXJKWDVHSDUDWHFODLPLQVWDWHFRXUW TXHVWLRQ WKDW VXJJHVWHG WKH\ KDG PLVXQGHUVWRRG sXGJH 'RZGjV LQVWUXFWLRQV UHJDUGLQJ WKHLU HDUOLHU GHOLEHUDWLRQV )LQGLQJ WKDW WKH HDUOLHU PLVXQGHUVWDQGLQJ FRXOG QRW EH FRUUHFWHGsXGJH'RZGGHFODUHGDPLVWULDORQsXQH 2QWKDWVDPHGD\WKHFDVHZDVWUDQVIHUUHGWR'LVWULFWsXGJH sDPHV *ZLQjV GRFNHW DQG D QHZ WULDO ZDV VFKHGXOHG IRU $XJXVW6HWWOHPHQWQHJRWLDWLRQVFRPPHQFHGVKRUWO\ WKHUHDIWHU %6HWWOHPHQW1HJRWLDWLRQV 2QsXQHsXGJH*ZLQDSSRLQWHGsXGJH'RZGWR PHGLDWHVHWWOHPHQWGLVFXVVLRQVZLWKWKHSDUWLHV$IWHUsXGJH 'RZGjVHIIRUWVWRPHGLDWHWKHGLVSXWHSURYHGXQVXFFHVVIXO sXGJH*ZLQFRQGXFWHGPHGLDWLRQVHVVLRQVZLWKWKHSDUWLHVRQ sXO\DQG7KHVHWWOHPHQWGLVFXVVLRQVIRFXVHG RQWZRDUHDVoDPXOWLPLOOLRQGROODUPRQHWDU\VHWWOHPHQWDQG OLPLWDWLRQVUHJDUGLQJIXWXUHFRPPLVVLRQVSOLWWLQJDQGUHODWHG PDWWHUV $IWHU PDQ\ KRXUV RI QHJRWLDWLRQV WKH SDUWLHV VLJQLILFDQWO\QDUURZHGWKHLU JDSZLWKUHJDUGWRDPRQHWDU\ VHWWOHPHQW7KHSDUWLHVWKHQVKLIWHGWKHLUIRFXVWRWKHLVVXHV 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO
VHWWOHPHQW DJUHHPHQWoLQFRUSRUDWLRQ RI WKH VHWWOHPHQW DVVRFLDWHGZLWKWKHLUIXWXUHFRPPLVVLRQVSOLWWLQJUHODWLRQVKLS DJUHHPHQWjV WHUPV LQ WKH GLVPLVVDO RUGHUoDQG QRW WKH ILUVW 2QsXO\5(0$;DQG6P\WKH&UDPHUUHDFKHGD EDVLV WKH LQFOXVLRQ RI D mSURYLVLRQ µUHWDLQLQJ MXULVGLFWLRQj FRPSUHKHQVLYH VHWWOHPHQW DJUHHPHQW sXGJH *ZLQ DVNHG RYHUWKHVHWWOHPHQWDJUHHPHQWl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
HVSHFLDOO\UHOHYDQWWRWKLVFDVH,Q0F$OSLQZHRXWOLQHGWKH 2QHjV ZLOOLQJQHVV WR VHWWOH
FRQWRXUVRIWKHVHFRQG EDVLVIRUDGLVWULFWFRXUWjVDQFLOODU\ $IWHU VXPPDU\ MXGJPHQW KDG EHHQ JLYHQ EXW EHIRUH WKH MXULVGLFWLRQWRHQIRUFHDVHWWOHPHQWDJUHHPHQW:HKHOGWKDW 6L[WK &LUFXLW KDG UHYHUVHG sXGJH 'RZGjV JUDQW RI VXPPDU\ DmGLVWULFWFRXUWjVLQFRUSRUDWLRQLQLWVGLVPLVVDORUGHURIRQO\ MXGJPHQW WKH IRUPHU RZQHUV RI 5HDOW\ 2QH VROG WKHLU LQWHUHVW LQ RQHWHUPRIWKH6HWWOHPHQW$JUHHPHQWLVLQVXIILFLHQWWR 5HDOW\ 2QH WR ,QVLJQLD )LQDQFLDO *URXS ,QF $V SDUW RI WKHLU
FRQIHUMXULVGLFWLRQRYHUWKHHQWLUHDJUHHPHQWl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j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jV FRQWULEXWLRQ HYHQ WKRXJK VRPH DUJXPHQW H[LVWHG WKDW WKH IRUPHU RZQHUVj GXW\ WR LQGHPQLI\ DQG GHIHQG RQO\ H[WHQGHG WR FODLPV 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO 5HDOW\ 2QH ZRXOG QRW DJUHH WR WKH VDPH OLPLWDWLRQV XSRQ GLVPLVVDOFRQWDLQVmVRPHVRUWRILQGLFDWLRQWKDWWKHFRXUWKDV IXWXUH FRQGXFW WR ZKLFK 6P\WKH &UDPHU KDG DJUHHG UHWDLQHGMXULVGLFWLRQl7KXVWKHPDMRULW\DSSHDUVWRDUJXH +RZHYHUDV5(0$;DQG6P\WKH&UDPHUFRQILUPHGWKHLU WKDWDSDUWLDOUHVHUYDWLRQRIMXULVGLFWLRQE\WKHGLVWULFWFRXUWLQ DJUHHPHQWRQWKHUHFRUG5HDOW\2QHjVFRXQVHOXQH[SHFWHGO\ LWV GLVPLVVDO RUGHU UHDOO\ RSHUDWHV DV D WRWDO UHVHUYDWLRQ RI VWDWHG WKDW KH GHVLUHG D VHWWOHPHQW RQ WKH VDPH WHUPV DV MXULVGLFWLRQ)RUH[DPSOHDSSDUHQWO\WKHPDMRULW\ZRXOGKROG 6P\WKH&UDPHUH[FHSWWKDW5HDOW\2QHZRXOGSD\QHDUO\ WKDWDGLVWULFWFRXUWjVUHVHUYDWLRQRIMXULVGLFWLRQLQDGLVPLVVDO WZLFHDVPXFKLQWKHVHWWOHPHQW7KHQH[WGD\WKHGLVWULFW RUGHURYHUDVHWWOHPHQWDJUHHPHQWIRUQLQHW\GD\VLVDFWXDOO\ DUHVHUYDWLRQRIMXULVGLFWLRQIRUDQLQGHILQLWHSHULRGRIWLPHRU WKDWDGLVWULFWFRXUWjVUHVHUYDWLRQRIMXULVGLFWLRQLQDGLVPLVVDO RUGHURYHURQHSURYLVLRQLQDVHWWOHPHQWDJUHHPHQWLVUHDOO\D DULVLQJ GXULQJ WKHLU WHQXUH QRW WR FODLPV RU GDPDJHV DULVLQJ GXULQJ ,QVLJQLDjV RZQHUVKLS UHVHUYDWLRQRIMXULVGLFWLRQRYHUWKHZKROHDJUHHPHQW,QRWKHU ZRUGVWKHGLVWULFWFRXUWjVGLVPLVVDORUGHULQWKLVFDVHGRHVQRW $OWKRXJK WKH IRUPHU RZQHUV RI 'HIHQGDQW 5HDOW\ 2QH PHDQZKDWLWFOHDUO\VD\VEXWLQVWHDGPHDQVZKDWWKLVFRXUW RIIHUHG VXIILFLHQW PRQLHV WR VHWWOH 3ODLQWLII 5(0$;j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jV PRQLHV .RNNRQHQWKDWWKHUHLVDSUHVXPSWLRQDJDLQVWDGHWHUPLQDWLRQ RQ H[SHQVHV DQG ULVN WKH IRUPHU RZQHUjV DVVHWV WR UHVSRQG WR DQ\ RI IHGHUDO MXULVGLFWLRQ DQG WKDW IHGHUDO FRXUW MXULVGLFWLRQ SRWHQWLDO MXGJPHQW VKRXOGmQRWEHH[SDQGHGE\MXGLFLDOGHFUHHl86DW ,W IXUWKHU KHOG WKDW ZKLOH D GLVWULFW FRXUW PD\ UHVHUYH s$ DW Q MXULVGLFWLRQWRHQIRUFHDVHWWOHPHQWDJUHHPHQWLWPXVWGRVR LQLWVGLVPLVVDORUGHU,GDW7KHPDMRULW\RSLQLRQLV $V WKH SURFHHGLQJV FRQWLQXHG 5HDOW\ 2QHjV &RXQVHO 7KRPDV *RUPDQ VXGGHQO\ GHFLGHG WR VHWWOH WKH PDWWHU FRQWUDU\WRWKH6XSUHPH&RXUWjVUXOLQJLQ.RNNRQHQEHFDXVH LWGLVUHJDUGVWKHSUHVXPSWLRQDJDLQVWIHGHUDOMXULVGLFWLRQDQG 7+( &2857 , ORRN DW P\ FDOHQGHU DV DJDLQVW 5HDOW\ 2QH H[SDQGV WKH GLVWULFW FRXUWjV MXULVGLFWLRQ WR HQIRUFH WKH ZH DUH JRLQJ WR VWDUW LW >WKH MXU\ WULDO@ RQ VHWWOHPHQW DJUHHPHQW EH\RQG WKH SODLQ PHDQLQJ RI WKH >$XJXVW @ GLVPLVVDORUGHU 05 *250$1 $V WR 5HDOW\ 2QH ZH DUH LQ DJUHHPHQW WR WKH ILQDQFLDO WHUPV ZH GLVFXVVHG HDUOLHU VDPH 7KHPDMRULW\jVDSSURDFKLVDOVRLQFRQVLVWHQWZLWKRXURZQ WHUPV WR WKH ILQDQFLDO DUUDQJHPHQW ZH SUHFHGHQW,Q0F$OSLQY/H[LQJWRQ$XWR7UXFN6WRS,QF GLVFXVVHG HDUOLHU , GRQjW NQRZ WKH QXPEHU )GWK&LUZHKHOGFLWLQJRXUHDUOLHU GHFLVLRQLQ&DXGLOOY1RUWK$PHULFDQ0HGLD&RUS)G 05 48,11 6R \RX DUH DJUHHLQJ QRZ WR VHWWOH" WK &LU WKDW ZH KDG mMRLQHG RWKHU FLUFXLWV LQ 05 *250$1 BBBBBBBBBBBBBBBBB FRXUWHQWHUHGDQRUGHUGLVPLVVLQJWKHDFWLRQZLWKSUHMXGLFH SXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUH5XOHD ',66(17 BBBBBBBBBBBBBBBBB &3RVW6HWWOHPHQW$FWLYLWLHV :$//$&(&LUFXLWsXGJHGLVVHQWLQJ%HFDXVH,FRQFOXGH ,QWKHGD\VWKDWIROORZHG5HDOW\2QHLVVXHGDSUHVVUHOHDVH WKDWWKHGLVWULFWFRXUWGLGQRWUHWDLQMXULVGLFWLRQWRHQIRUFHWKH LQGLFDWLQJWKDWWKHm>I@LQDOGHWDLOVRIWKHVHWWOHPHQW>ZHUH@ VHWWOHPHQW DJUHHPHQW , GLVVHQW 7KH DSSHDO VKRXOG EH EHLQJFRQGXFWHGE\DWWRUQH\VIRUWKHYDULRXVSDUWLHVls$ GLVPLVVHG DW 5HDOW\ 2QH DOVR FLUFXODWHG D QHZVOHWWHU WR LWV HPSOR\HHV ZKLFK VWDWHG m>5HDOW\ 2QH KDV@ UHDFKHG DQ 7RUHWDLQMXULVGLFWLRQWRHQIRUFHDVHWWOHPHQWDJUHHPHQWD DJUHHPHQW LQ SULQFLSOH WR VHWWOH RXU ORQJUXQQLQJ ODZVXLW GLVWULFWFRXUWPXVWHLWKHULQFOXGHDmVHSDUDWHSURYLVLRQ>LQWKH ZLWK5(0$;7KRXJKWKHGHWDLOVDUHVWLOOEHLQJILQDOL]HG RUGHU RI GLVPLVVDO@ VXFK DV D SURYLVLRQ µUHWDLQLQJ WKHGHILQLWLYHDJUHHPHQWLVH[SHFWHGE\WKHHQGRI$XJXVWl MXULVGLFWLRQj RYHU WKH VHWWOHPHQW DJUHHPHQW RU s$DW2YHUWKHFRXUVHRIWKHQH[WPRQWKDQGDKDOI LQFRUSRUDW>H@ WKH WHUPV RI WKH VHWWOHPHQW DJUHHPHQW LQ WKH WKHSDUWLHVHQJDJHGLQFRQWLQXHGWDONVEXWIDLOHGWRSUHSDUHD >GLVPLVVDO@RUGHUl.RNNRQHQY*XDUGLDQ/LIH,QV&RRI GUDIWRIWKHILQDODJUHHPHQW $P 86 ,Q WKLV FDVH WKH PDMRULW\ DUJXHVWKDWWKHGLVWULFWFRXUWKDGMXULVGLFWLRQWRHQIRUFHWKH )LUVW5(0$;VHQWDGUDIWRIDZULWWHQDJUHHPHQWWR5HDOW\ VHWWOHPHQWDJUHHPHQWEHFDXVHLWLQFOXGHGDSURYLVLRQLQLWV 2QH RQ sXO\ 5HDOW\ 2QH GLG QRW UHVSRQG WR RUGHURIGLVPLVVDOmµUHWDLQLQJMXULVGLFWLRQjRYHUWKHVHWWOHPHQW DJUHHPHQWl,G 7KHRUGHURIGLVPLVVDOVWDWHV 05 48,11 PLOOLRQ o 1R WKDWjV WKH WRWDO ,7,625'(5('WKDWWKHGRFNHWEHPDUNHGmVHWWOHGDQG 05 *250$1 LV IRU 5HDOW\ 2QH GLVPLVVHGZLWKSUHMXGLFHl 7+( &2857 sXVW WR EH FOHDU XQGHU WKH VDPH WHUPV 0U )857+(5>D@Q\VXEVHTXHQWRUGHUVHWWLQJIRUWKGLIIHUHQW *RUPDQ ZLWK WKH H[FHSWLRQ EHLQJ WKDW 5HDOW\ 2QH ZRXOG SD\ WKH VXP RI WHUPV DQG FRQGLWLRQV UHODWLYH WR WKH VHWWOHPHQW DQG GLVPLVVDORIWKHZLWKLQDFWLRQVKDOOVXSHUVHGHWKHZLWKLQ 05 *250$1 5(0$;jVGUDIWIRURYHUWKUHHZHHNV2Q$XJXVW MXGJPHQW&OLQWRQ6W*UHDWHU%HWKOHKHP&KXUFKY&LW\RI 5HDOW\2QHLQIRUPHG5(0$;WKDWLWZDVmQRWQHFHVVDU\WR 'HWURLW )G WK &LU 6XPPDU\ SUHSDUH DQ\ DGGLWLRQDO GRFXPHQWDWLRQ FRQFHUQLQJ WKH HQIRUFHPHQWRIDVHWWOHPHQWDJUHHPHQWIRUZKLFKWKHUHLVQR VHWWOHPHQWlEHFDXVHmWKHWUDQVFULSWGLFWDWHGE\sXGJH*ZLQ GLVSXWH DV WR WKH WHUPV RI WKH DJUHHPHQW LV WKH RQO\ DQGDJUHHGWRE\FRXQVHODQGWKHSDUWLHVLQFRXUWRQsXO\ DSSURSULDWHMXGLFLDOUHVSRQVHDEVHQWSURRIRIIUDXGRUGXUHVV LV WKH FRPSOHWH VHWWOHPHQW RI WKH SDUWLHVl s$ DW 6HHHJ$UR&RUS)GDW.XNOD)GDW 5HDOW\2QHDOVRFODLPHGWKDW5(0$;jVSURSRVHG FI'LOORZY$VKODQG1R:/ GUDIW FRQWDLQHG mDGGLWLRQDO WHUPV DQG SURYLVLRQVl QRW DW WK&LU$XJXQSXEOLVKHGKROGLQJ LQFOXGHGLQWKHsXO\VHWWOHPHQW QR UHVWULFWLRQ DSSO\LQJ RQO\ WR FXUUHQW 5(0$; DJHQWV WR WKH SUHSDUDWLRQ RI SDSHUV DQG WKH IRUW\ ILYH GD\ )XUWKHUPRUHWKHVHWWOHPHQWWDONVIRFXVHGLQODUJHSDUWXSRQ GHVLJQDWLRQIRUGRLQJVRUHIHUVWRWKHSUHSDUDWLRQRIWKH SURVSHFWLYHEXVLQHVVDUUDQJHPHQWV/LPLWLQJWKHRUGHURQO\ OHWWHUVWRZLWKGUDZWKHVSHFLDOQRWLFHVDQGWKHUHOHDVHV WRFXUUHQWDJHQWVZRXOGGHIHDWWKHFOHDULQWHQWRIWKHSDUWLHVLQ SODLQWLIIVDUHWRIXUQLVKGHIHQGDQWVl DJUHHLQJWRVHWWOHE\UHQGHULQJWKHDJUHHPHQWLPSRWHQW s$DWHPSKDVLVDGGHG5HDOW\2QHIXUWKHULQGLFDWHG 'LVSXWH5HVROXWLRQ3URFHGXUH WKDWLWZDVZLOOLQJWRH[HFXWHDPHPRULDODJUHHPHQWmZKLFK FRQWDLQVWKHWHUPVRIWKHsXO\WKDJUHHPHQWDQDFWZKLFK )LQDOO\ 5HDOW\ 2QH DWWDFNV WKH GHWDLOHG m'LVSXWH LV FOHDUO\ XQQHFHVVDU\ LQ RXU YLHZl EXW ZDV XQZLOOLQJ WR 5HVROXWLRQ 3URFHGXUHVl LQFRUSRUDWHG LQWR WKH VHWWOHPHQW H[HFXWH D GRFXPHQW WKDW VLJQLILFDQWO\ YDULHG IURP WKDW RUGHU +RZHYHU LW IDLOV WR REMHFW WR DQ\ RI WKH VSHFLILF DJUHHPHQW s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sXO\WKDJUHHPHQW KDYHLQFOXGHGWKHHQWLUH1RUWKHUQ'LVWULFWRI2KLRZKLFKLV 6SHFLILFDOO\,FRQWLQXHWRDVN\RXWRWHOOXVZKDWWHUPV WKHDUHDLQZKLFK5HDOW\2QHZDVDOOHJHGO\HQJDJHGLQDQWL \RXDUHUHIHUULQJWR FRPSHWLWLYH EXVLQHVV SUDFWLFHV WKDW LQKLELWHG 5(0$;jV RSHUDWLRQV 7KH IXOO UHPHG\ QHJRWLDWHG E\ WKH SDUWLHV )LQDOO\\RXDVNZKHWKHURUQRWZHVWLOOZDQWHG\RXWR FRQWHPSODWHGLQFOXGLQJWKLVHQWLUHDUHD mUHGOLQHl WKH DJUHHPHQW WR HOLPLQDWH WKH WHUPV ZKLFK KDYHEHHQmDGGHGlWRWKHsXO\WKDJUHHPHQW FRPPLVVLRQVWKDQ5HDOW\2QHDJHQWV+RZHYHU5HDOW\2QH DGGLWLRQDO REMHFWLRQV 7KDW HYHQLQJ 5HDOW\ 2QH LQIRUPHG SURYLGHVQRVXSSRUWIRUWKLVUHVWULFWLRQ$WWKHsXO\VHWWOHPHQW 5(0$;WKDWLWKDGmGLIILFXOWLHVlZLWKWKDWGUDIWEXWIDLOHG FRQIHUHQFH 6P\WKH &UDPHU DJUHHG WKDW LQ DGGLWLRQ WR WRVSHFLI\WKRVHSUREOHPV ZLWKGUDZLQJDOODGYHUVHVSOLWVWKHQLQHIIHFWLWZRXOG DOVR FRYHQDQWQRWWRmLPSRVHDQ\DGYHUVHVSOLWVEDVHGXSRQWKH 2QWKHHYHQLQJRI0RQGD\6HSWHPEHU5HDOW\2QH EXVLQHVVPRGHOXVHGE\SODLQWLII5(0$;RULWVDJHQWVDQG VHQW 5(0$; D OLVW RI QHDUO\ WZR GR]HQ RI LWV FRQFHUQV ZRXOGGRVRRQO\IRUUHDVRQVFRQVLVWHQWZLWKWKHLPSRVLWLRQ 5HDOW\ 2QH DOVR SURSRVHG LWV RZQ GUDIW RI WKH DJUHHPHQW RI DGYHUVH VSOLWV DPRQJ RWKHU UHDO HVWDWH DJHQFLHV LQ WKH ZKLFKKDGDFRYHUOHWWHUDWWDFKHGUHDGLQJLQSDUWm>:@HKDYH >1RUWK(DVWHUQ2KLR@DUHDls$DWHPSKDVLVDGGHG SUHSDUHGDGUDIWDJUHHPHQWLQDFFRUGDQFHZLWKWKHsXO\ :KHQ 5HDOW\ 2QH DJUHHG WR WKH VDPH WHUPV DV 6P\WKH WUDQVFULSWVLQFHWKHSURYLVLRQVLQ\RXUHDUOLHUGUDIWIDU &UDPHULWDJUHHGWRWKLVSURYLVLRQDVZHOO,QDGGLWLRQWKH H[FHHGHG WKH WHUPV DJUHHG WRl s$ DW 5(0$; SDUWLHVj VWLSXODWLRQV IURP HDUO\ LQ WKH OLWLJDWLRQ LPSO\ D REMHFWHGWRWKLVGUDIWDUJXLQJWKDWLWQDUURZHGWKHPHDQLQJRI EURDGHU GHILQLWLRQ WKDW 5HDOW\ 2QH QRZ DGYRFDWHV :H NH\ WHUPV ,URQLFDOO\ 5HDOW\ 2QHjV SURSRVHG DJUHHPHQW WKHUHIRUHILQGQRHUURULQWKHGLVWULFWFRXUWjVGHILQLWLRQRIWKLV ZKLOHSXUSRUWLQJWREHOLPLWHGWRWKHWHUPVRIWKHsXO\WK WHUP WUDQVFULSWDV5(0$;jVDJUHHPHQWKDGDOOHJHGO\IDLOHGWRGR ZDVDFWXDOO\ORQJHUWKDQ5(0$;jVGUDIW m1RUWK(DVWHUQ2KLRlm0/6l m5(0$;%URNHUVl 2Q6HSWHPEHU5(0$;ILOHGDPRWLRQWRHQIRUFH 5HDOW\ 2QH GLVSXWHV WKH JHRJUDSKLF DUHD LQ ZKLFK WKH WKHVHWWOHPHQWDJUHHPHQW5HDOW\2QHRSSRVHGWKLVPRWLRQRQ DJUHHPHQW ZLOO EH HIIHFWLYH 6SHFLILFDOO\ LW FODLPV WKDW WKHEDVLVWKDWWKHGLVWULFWFRXUWODFNHGMXULVGLFWLRQ5HDOW\2QH m1RUWKHDVWHUQ2KLRlRUm1RUWKHDVW2KLRlVKRXOGEHOLPLWHG DOVRDOOHJHGWKDWLWKDGDOUHDG\VDWLVILHGWKHWHUPVRIWKHsXO\ WR WKHWKLUWHHQFRXQWLHVUHSUHVHQWHGE\WKHORFDOUHDOHVWDWH WK DJUHHPHQW 1HLWKHU SDUW\ UHTXHVWHG DQ HYLGHQWLDU\ LQGXVWU\jVmPXOWLSOHOLVWLQJVHUYLFHVlm0/6loQDPHO\WKH KHDULQJsXGJH*ZLQHQWHUHGDQRUGHUHQIRUFLQJWKHPRWLRQ 1RUWKHUQ 2KLR 5HJLRQDO 0XOWLSOH /LVWLQJ 6HUYLFH RQ6HSWHPEHU m1250/6lDQGWKH$NURQ$UHD0XOWLSOH/LVWLQJ6HUYLFH m$$0/6loDVRSSRVHGWRWKH1RUWKHUQ'LVWULFWRI2KLR ',6&866,21 ZKLFK LQFOXGHV VRPH WZHQW\ FRXQWLHV 7KH UHFRUG UHYHDOV WKDW RQ sXO\ WK 6P\WKH &UDPHU DJUHHG WKDW WKH ,s85,6',&7,2172(1)25&(6(77/(0(17 UHVWULFWLRQVZRXOGDSSO\WRm1RUWK(DVWHUQ2KLRlWKHSDUWLHV $*5((0(17 7KLV FRXUW UHYLHZV D GLVWULFW FRXUWjV GHFLVLRQ UHJDUGLQJ VXEMHFWPDWWHUMXULVGLFWLRQGHQRYR/RQJY%DQGR0IJRI 7KH ILUVW VWLSXODWLRQ SURYLGHV $P ,QF )G WK &LU 7KH SDUW\ VHHNLQJWRLQYRNHWKHVXEMHFWPDWWHUMXULVGLFWLRQRIWKHGLVWULFW 7KH GLVWLQJXLVKLQJ FKDUDFWHULVWLFV RI WKH 5(0$; V\VWHP FRXUWEHDUVWKHEXUGHQRIVKRZLQJWKDWWKHPDWWHULVSURSHUO\ LQFOXGH DPRQJ RWKHU WKLQJV GLVWLQFWLYH VDOHV DQG SURPRWLRQDO EHIRUHWKDWFRXUW6HUUDVY)LUVW7HQQ%DQN1DWjO$VVjQ PDWHULDOV FHQWUDOL]HG DGYHUWLVLQJ SURPRWLRQDO DQG UHIHUUDO )G WK &LU FLWLQJ 0F1XWW Y *HQ VHUYLFHV SURSULHWDU\ SURFHGXUHV DQG D FRPPLVVLRQ 0RWRUV$FFHSWDQFH&RUS86 FRQFHSW s$ DW 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO 5HDOW\2QHFRQWHQGVRQDSSHDOWKDWWKHGLVWULFWFRXUWODFNHG GLVWULFW FRXUWjV GHILQLWLRQ RI mVSHFLDO QRWLFH OHWWHUl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sXO\ sXO\ 5HDOW\2QHZDVmFDQFHOLQJDQ\DQGDOOVSHFLDOQRWLFHVVHQW 'XULQJ VDLG FRQIHUHQFHV VHWWOHPHQW WDONV WRRN SODFH UHJDUGLQJWKHFRPPLVVLRQSD\DEOHWR\RXUEURNHUDJHRQWKH $IWHUDGLOLJHQWHIIRUWRQDOOVLGHVWKHSDUWLHVKDYHVHWWOHG VDOH E\ \RXU EURNHUDJH RI D 5HDOW\ 2QH OLVWLQJl s$ DW WKLV>@7KHUHIRUH 5HDOW\2QHjVFKDOOHQJHLVWKHUHIRUHZLWKRXWPHULW ,7,625'(5('WKDWWKHGRFNHWEHPDUNHGmVHWWOHG m5(0$;%XVLQHVV0RGHOl DQGGLVPLVVHGZLWKSUHMXGLFHl 5HDOW\2QHDOVRFRQWHQGVWKDWWKHGLVWULFWFRXUWjVGHILQLWLRQ )857+(5 $Q\ VXEVHTXHQW RUGHU VHWWLQJ IRUWK RI WKH m5(0$; EXVLQHVV PRGHOl LV WRR EURDG DQG GLIIHUHQW WHUPV DQG FRQGLWLRQV UHODWLYH WR WKH H[SDQVLYH 5HDOW\ 2QH FODLPV WKDW WKH GHILQLWLRQ RI WKLV VHWWOHPHQWDQGGLVPLVVDORIWKHZLWKLQDFWLRQVKDOO WHUPVKRXOGEHOLPLWHGWRPHDQWKH5(0$;FRQFHSW VXSHUVHGHWKHZLWKLQRUGHU DSROLF\E\ZKLFK5(0$;DJHQWVW\SLFDOO\UHWDLQHGODUJHU 2UGHURI'LVPLVVDOs$DW ,Q.RNNRQHQY*XDUGLDQ/LIH,QV&RRI$P86 7KH GLVWULFW FRXUWjV RUGHU GHILQHV mVSHFLDO QRWLFH OHWWHUl DV WKH 6XSUHPH &RXUW FRQVLGHUHG D GLVWULFW FRXUWjV DWWHPSWWRHQIRUFHDVHWWOHPHQWDJUHHPHQWEHWZHHQSDUWLHVLQ D ZULWWHQ QRWLILFDWLRQ E\ GHIHQGDQWV WR D EURNHU LQ ZKLFK D GHIHQGDQW L RIIHUV WR FRPSHQVDWH WKH DGGUHVVHH EURNHU RQ WKH D GLYHUVLW\ DFWLRQ 7KH SDUWLHV KDG VHWWOHG DQG ILOHG D VDOH RI D GHIHQGDQW OLVWLQJ E\ WKH DGGUHVVHH EURNHU RU DQ\ RI LWV VWLSXODWLRQ RI GLVPLVVDO ZLWK SUHMXGLFH SXUVXDQW WR )HG 5 DJHQWV HLWKHU DV EX\HUjV DJHQW RU DV VXEDJHQW DW D OHYHO ORZHU &LY 3UR D LL ZKLFK WKH GLVWULFW FRXUW MXGJH WKHQ WKDQ WKDW RIIHUHG JHQHUDOO\ E\ WKH GHIHQGDQW WR RWKHU EURNHUV VLJQHG :ULWLQJ IRU D XQDQLPRXV &RXUW sXVWLFH 6FDOLD WKURXJK WKH OLVWLQJ RI WKH SURSHUW\ ZLWK DQ 0/6 RU LL GHFOLQHV WR FREURNH RQ GHIHQGDQW OLVWLQJV s$ DW 7KDW UXOH SURYLGHV 7KH GLVWULFW FRXUW RUGHU GHILQHG m5(0$; EXVLQHVV PRGHOl DV 6XEMHFW WR WKH SURYLVLRQV RI 5XOH H RI 5XOH DQG RI DQ\ IROORZV VWDWXWH RI WKH 8QLWHG 6WDWHV DQ DFWLRQ PD\ EH GLVPLVVHG E\ WKH SODLQWLII ZLWKRXW RUGHU RI FRXUW LL E\ ILOLQJ D VWLSXODWLRQ RI 5(0$; EXVLQHVV PRGHOl VKDOO PHDQ WKH PHWKRGV RI RSHUDWLQJ GLVPLVVDO VLJQHG E\ DOO SDUWLHV ZKR KDYH DSSHDUHG LQ WKH DFWLRQ DQG GHYHORSLQJ D UHVLGHQWLDO UHDO HVWDWH EURNHUDJH RIILFH DV 8QOHVV RWKHUZLVH VWDWHG LQ WKH QRWLFH RI GLVPLVVDO RU VWLSXODWLRQ WDXJKW DQGRU SURPRWHG E\ 5(0$; ,QWHUQDWLRQDO WR QHZ DQG WKH GLVPLVVDO LV ZLWKRXW SUHMXGLFH H[FHSW WKDW D QRWLFH RI H[LVWLQJ IUDQFKLVHHV GLVPLVVDO RSHUDWHV DV DQ DGMXGLFDWLRQ XSRQ WKH PHULWV ZKHQ ILOHG E\ D SODLQWLII ZKR KDV RQFH GLVPLVVHG LQ DQ\ FRXUW RI WKH 8QLWHG s$ DW 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO 5HDOW\2QHDJUHHGWRSD\PXFKPRUHWKDQWKHDPRXQWDJUHHG H[SODLQHGWKDWDVFRXUWVRIOLPLWHGMXULVGLFWLRQIHGHUDOGLVWULFW XSRQE\6P\WKH&UDPHU$VZHKDYHDOUHDG\GLVFXVVHGWKLV FRXUWVGRQRWSRVVHVVWKHLQKHUHQWSRZHUWRYLQGLFDWHWKHLU IDFWXDOGHWHUPLQDWLRQZDVQRWFOHDUO\HUURQHRXV5HDOW\2QHjV RZQDXWKRULW\ZKHUHSDUWLHVHQWHULQWRDYROXQWDU\DJUHHPHQW DWWRUQH\ VWDWHG DQG WKH GLVWULFW FRXUW MXGJH YHULILHG WKDW UHVROYLQJ WKHLU IHGHUDO ODZVXLW ,G DW ,QVWHDG 5HDOW\ 2QH ZDV DJUHHLQJ WR WKH VDPH GHDO WKDW KDG EHHQ m>H@QIRUFHPHQWRIWKHVHWWOHPHQWDJUHHPHQWZKHWKHUWKURXJK GLFWDWHGLQWRWKHUHFRUGGXULQJWKHVHYHUDOPLQXWHVSULRUWR DZDUGRIGDPDJHVRUGHFUHHRIVSHFLILFSHUIRUPDQFHLVPRUH 5HDOW\ 2QHjV VXUSULVH VHWWOHPHQW DJUHHPHQW 7KH GLVWULFW WKDQMXVWDFRQWLQXDWLRQRUUHQHZDORIWKHGLVPLVVHGVXLWDQG FRXUWjVHQIRUFHPHQWRUGHUSURKLELWV5HDOW\2QHIURPLVVXLQJ KHQFH UHTXLUHV LWV RZQ EDVLV IRU MXULVGLFWLRQl ,G DW mVSHFLDOQRWLFHOHWWHUVlWR5(0$;EURNHUVLQWKH1RUWKHUQ +RZHYHUDGLVWULFWFRXUWGRHVKDYHWKHDXWKRULW\WRGLVPLVV 'LVWULFWRI2KLREDVHGXSRQWKHLUDIILOLDWLRQZLWK5(0$;RU SHQGLQJ FODLPV ZKLOH UHWDLQLQJ MXULVGLFWLRQ RYHU WKH IXWXUH WKHLUXVHRIWKH5(0$;EXVLQHVVPRGHO5HDOW\2QHQRZ HQIRUFHPHQWRIDVHWWOHPHQWDJUHHPHQW)XWHUQLFNY6XPSWHU FODLPVWKDWWKHWHUPVLQWKHGLVWULFWFRXUWjVRUGHUDUHGLIIHUHQW 7RZQVKLS)GWK&LU7KH.RNNRQHQ WKDQ WKRVH WR ZKLFK LW DVVHQWHG RQ sXO\ &RXUW QRWHG WKDW VXFK DQFLOODU\ MXULVGLFWLRQ ZRXOG KDYH 6SHFLILFDOO\5HDOW\2QHFRPSODLQVWKDWFHUWDLQWHUPVDUHWRR H[LVWHGLIWKHSDUWLHVKDGSURYLGHGIRUWKHFRXUWjVHQIRUFHPHQW EURDG DQG DUH WKH SURGXFW RI VXEVHTXHQW QHJRWLDWLRQV DQG RIDGLVPLVVDOSURGXFLQJVHWWOHPHQWDJUHHPHQWWKURXJKHLWKHU GHDOV VWUXFN EHWZHHQ 5(0$; DQG 6P\WKH &UDPHU RQHRIWZRPHWKRGV +RZHYHU 5HDOW\ 2QH KDV IDLOHG WR DUWLFXODWH DQ\ PDWHULDO GLIIHUHQFHV EHWZHHQ WKH sXO\ WK DJUHHPHQW DQG WKH >7@KHRQO\RUGHUKHUHZDVWKDWWKHVXLWEHGLVPLVVHGD VXEVHTXHQWRUGHURIHQIRUFHPHQW:HEHOLHYHWKDWWKHSDUWLHV GLVSRVLWLRQWKDWLVLQQRZD\IORXWHGRULPSHULOHGE\WKH UHFHLYHG WKH VDPH EDVLF GHDO WR ZKLFK WKH\ KDG DOUHDG\ DOOHJHG EUHDFK RI WKH VHWWOHPHQW DJUHHPHQW 7KH DJUHHG VLWXDWLRQ ZRXOG EH TXLWH GLIIHUHQW LI WKH SDUWLHVj REOLJDWLRQ WR FRPSO\ ZLWK WKH WHUPV RI WKH VHWWOHPHQW m6SHFLDO1RWLFH/HWWHUl DJUHHPHQW KDG EHHQ PDGH SDUW RI WKH RUGHU RI GLVPLVVDOHLWKHU E\ VHSDUDWH SURYLVLRQ VXFK DV D 5HDOW\2QHREMHFWVWRWKHXVHRIWKHWHUPmVSHFLDOQRWLFH SURYLVLRQ mUHWDLQLQJ MXULVGLFWLRQl RYHU WKH VHWWOHPHQW OHWWHUlLQWKHGLVWULFWFRXUWjVRUGHUFRQWHQGLQJWKDWLWQHYHU DJUHHPHQW RU E\ LQFRUSRUDWLQJ WKH WHUPV RI WKH DJUHHG WR XVH WKLV WHUP DV D VXEVWLWXWH IRU mDGYHUVH VSOLWl VHWWOHPHQWDJUHHPHQWLQWKHRUGHU,QWKDWHYHQWDEUHDFK 5HDOW\2QHFODLPVWKDWXVHRIWKHWHUPmVSHFLDOQRWLFHOHWWHUl RI WKH DJUHHPHQW ZRXOG EH D EUHDFK RI WKH RUGHU DQG ZRXOGVLJQLILFDQWO\DOWHULWVREOLJDWLRQVDQGZRXOGLQVXODWH DQFLOODU\ MXULVGLFWLRQ WR HQIRUFH WKH DJUHHPHQW ZRXOG 5(0$; IURP IDLU PDUNHW FRPSHWLWLRQ $OWKRXJK WKH WKHUHIRUHH[LVW VHWWOHPHQWDJUHHPHQWDVVWDWHGSURYLGHVWKDW5HDOW\2QHZLOO ZLWKGUDZ DOO DGYHUVH VSOLWV DQG LVVXH WKHP XQGHU OLPLWHG .RNNRQHQ86DWHPSKDVLVDGGHG FLUFXPVWDQFHV LQ WKH IXWXUH WKH WHUP ZDV OHIW XQGHILQHG +RZHYHU5HDOW\2QHKDVQRWGHPRQVWUDWHGKRZLQFOXVLRQRI WKH WHUP mVSHFLDO QRWLFHl DV GHILQHG E\ WKH GLVWULFW FRXUW \LHOGVDPDWHULDOO\GLIIHUHQWDJUHHPHQW5HDOW\2QHLQIRUPHG 5(0$;RIWKHDGYHUVHVSOLWVYLDVSHFLDOQRWLFHOHWWHUV7KH 6WDWHV RU RI DQ\ VWDWH DQ DFWLRQ EDVHG RQ RU LQFOXGLQJ WKH VDPH WUDGH XVDJH RI WKH WHUP mDGYHUVH VSOLWl FRPSRUWV ZLWK WKH FODLP ) (' 5 &,9 3 D LL 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO :H ILUVW FRQVLGHUHG WKH UHTXLUHPHQWV IRU VDWLVI\LQJ WKH 5HDOW\2QHDUJXHGWKDWLWQHYHUDJUHHGWRSUHSDUHDQ\ZULWWHQ VHFRQG .RNNRQHQ H[FHSWLRQ LQ &DXGLOOY 1 $P 0HGLD GRFXPHQWDVLGHIURPSDSHUVZLWKGUDZLQJLWVVSHFLDOQRWLFH &RUS )G WK &LU )ROORZLQJ WKH OHWWHUVLQIRUPLQJ5(0$;IUDQFKLVHHVRILWVLQWHQWWRHQJDJH GHFLVLRQVRIWKH7KLUGDQG(LJKWK&LUFXLWVRQWKLVLVVXHLQ,Q LQ DGYHUVH VSOLWV 7KH UHFRUG VKRZV WKDW 5HDOW\ 2QH UH3KDU0RU,QF6HFXULWLHV/LWLJDWLRQ)GG&LU VWXEERUQO\UHIXVHGWRFRRSHUDWH DQG0LHQHUY0LVVRXUL'HSDUWPHQWRI0HQWDO+HDOWK )G WK &LU ZH KHOG WKDW m>W@KH SKUDVH 5HDOW\2QHQRZFODLPVWKDWLWFRPSOLHGZLWKWKHWHUPVRI µSXUVXDQWWRWKHWHUPVRIWKH>V@HWWOHPHQWjIDLOVWRLQFRUSRUDWH WKH VHWWOHPHQW DJUHHPHQW E\ WHQGHULQJ D SD\PHQW IRU RYHU WKHWHUPVRIWKH>V@HWWOHPHQWDJUHHPHQWLQWRWKHRUGHUEHFDXVH WKUHHPLOOLRQGROODUVDQG E\ ZLWKGUDZLQJLWVVSHFLDOQRWLFH µ>D@GLVPLVVDORUGHUjVPHUHUHIHUHQFHWRWKHIDFWRIVHWWOHPHQW OHWWHUV+RZHYHULWGLGQRWHYHQPDNHWKHVHRYHUWXUHVXQWLO GRHVQRWLQFRUSRUDWHWKHVHWWOHPHQWDJUHHPHQWLQWKHGLVPLVVDO $XJXVWZKLFKZDVWKHGHDGOLQHIRUPHPRULDOL]LQJ RUGHUjl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j 2FWREHU VHWWOHPHQW DJUHHPHQW WKH &RXUW VHWWOHPHQW RQ WKH VDPH WHUPV DV WR IXWXUH FRQGXFW WKDW KHUHE\ ',60,66(6 WKLV FDVH 5(0$;KDGDJUHHGXSRQZLWK6P\WKH&UDPHUH[FHSWWKDW ,7 ,6 62 25'(5(' &DXGLOO Y 1 $P 0HGLD &RUS )G Q WK &LU 4XLQQ DJUHHG ,Q 0F$OSLQ WKH VWLSXODWLRQ RI GLVPLVVDO SURYLGHG 05 0F.(/9(< 7KHH[LVWHQFHRIDYDOLGDJUHHPHQWLVQRWGLPLQLVKHGE\WKH ,QDVPXFKDVWKHGLVWULFWFRXUWjVRUGHURIGLVPLVVDOLQWKH IDFWWKDWWKHSDUWLHVKDYH\HWWRPHPRULDOL]HWKHDJUHHPHQW LQVWDQWFDVHPHUHO\PDGHUHIHUHQFHWRmVHWWOHPHQWWDONVlDQG :KHQ SDUWLHV KDYH DJUHHG RQ WKH HVVHQWLDO WHUPV RI D IDLOHGWRLQFRUSRUDWHWKHWHUPVRIWKHVHWWOHPHQWDJUHHPHQWLW VHWWOHPHQW DQG DOO WKDW UHPDLQV LV WR PHPRULDOL]H WKH LV FOHDU WKDW WKH VHFRQG .RNNRQHQ H[FHSWLRQ KDV QRW EHHQ DJUHHPHQWLQZULWLQJWKHSDUWLHVDUHERXQGE\WKHWHUPVRIWKH VDWLVILHG +RZHYHU LQ FRQVLGHULQJ 5(0$;jV PRWLRQ WR RUDODJUHHPHQW%URFN)GDW.XNOD)GDW HQIRUFHWKHGLVWULFWFRXUWIRXQGWKDWWKURXJKWKHODQJXDJHRI REVHUYLQJ WKDW WKH SRZHU RI D WULDO FRXUW WR HQIRUFH D LWV RUGHU LW KDG UHWDLQHG MXULVGLFWLRQ WR HQIRUFH PDWWHUV VHWWOHPHQW DJUHHPHQW KDV EHHQ XSKHOG HYHQ ZKHUH WKH FRQFHUQLQJWKHVHWWOHPHQWDJUHHPHQWLQVDWLVIDFWLRQRIWKHILUVW DJUHHPHQWKDVQRWEHHQDUULYHGDWLQWKHSUHVHQFHRIWKHFRXUW .RNNRQHQH[FHSWLRQ QRUUHGXFHGWRZULWLQJ)XUWKHUPRUHWKHREMHFWLYHDFWVRIWKH SDUWLHVUHIOHFWWKDWDQDJUHHPHQWKDGEHHQUHDFKHG,QWKHILUVW 5HDOW\ 2QH DUJXHV WKDW XQGHU WKLV &RXUWjV RSLQLRQ LQ IHZ GD\V DIWHU WKH VHWWOHPHQW ZDV UHDFKHG 5HDOW\ 2QH 0F$OSLQ WKH GLVWULFW FRXUWjV ODQJXDJH ZDV QRW VXIILFLHQWO\ FRPPXQLFDWHGLWVEHOLHIWKDWDQDJUHHPHQWKDGEHHQUHDFKHG H[SOLFLW 5HDOW\ 2QH SRLQWV WR WKLV &RXUWjV VWDWHPHQW LQ LQDQHZVOHWWHUWRLWVHPSOR\HHV,QDGGLWLRQDWYDULRXVSRLQWV 0F$OSLQWKDWXQGHU.RNNRQHQmDIHGHUDOGLVWULFWFRXUWODFNV LQ WKH SRVWVHWWOHPHQW WDONV 5(0$; DWWHPSWHG WR MXULVGLFWLRQ WR HQIRUFH D VHWWOHPHQW DJUHHPHQW WHUPLQDWLQJ FRQVXPPDWHWKHVHWWOHPHQWE\SUHSDULQJDZULWWHQGRFXPHQW OLWLJDWLRQXQOHVVWKHFRXUWµH[SUHVVO\UHWDLQHGMXULVGLFWLRQWR 5HDOW\2QHDOVREHJDQSHUIRUPDQFHRILWVREOLJDWLRQVXQGHU HQIRUFHWKHVHWWOHPHQWDJUHHPHQWjRUµLQFRUSRUDWHGWKHWHUPV WKHDJUHHPHQWE\WHQGHULQJDSD\PHQWRIRYHUWKUHHPLOOLRQ RIWKHVHWWOHPHQWLQWRWKHGLVPLVVDORUGHUjl0F$OSLQ GROODUVDQGZLWKGUDZLQJLWVDGYHUVHVSOLWOHWWHUV8QGHU2KLR )GDWHPSKDVLVDGGHG,Q0F$OSLQZHQRWHGWKDWWKLV ODZ WKHVH H[SUHVVLRQV RI DVVHQW DUH JHQHUDOO\ VXIILFLHQW WR &RXUW KDV mMRLQHG RWKHU FLUFXLWV LQ VWULFWO\ DSSO\LQJ VKRZDPHHWLQJRIWKHPLQGV6HH1LODYDUY2VERUQ .RNNRQHQjV UHODWLYHO\ QDUURZ LQWHUSUHWDWLRQ RI D GLVWULFW 1(G2KLR&W$SS FRXUWjVDQFLOODU\MXULVGLFWLRQWRHQIRUFHVHWWOHPHQWDJUHHPHQWV WHUPLQDWLQJOLWLJDWLRQl,GDW+RZHYHUZHGLGQRWKDYH %%UHDFK%\5HDOW\2QH RFFDVLRQWRFRQVWUXHWKHILUVW.RNNRQHQH[FHSWLRQLQWKDWFDVH ,QVWHDGWKHKROGLQJLQ0F$OSLQZDVOLPLWHGWRKROGLQJWKDW 7KHGLVWULFWFRXUWQRWHGLQLWVRUGHU WKDW 5HDOW\2QHKDG mWKH GLVWULFW FRXUWjV LQFRUSRUDWLRQ LQ LWV GLVPLVVDO RUGHU RI EUHDFKHGWKHDJUHHPHQWE\IDLOLQJWRQHJRWLDWHLQJRRGIDLWK RQO\ D VLQJOH WHUP RI WKH SDUWLHVj SDJH VHWWOHPHQW DQGDJUHHWRILQDOWHUPV$FFRUGLQJWRWKHSODLQODQJXDJHRI DJUHHPHQW LV LQVXIILFLHQW WR VXSSRUW WKH FRXUW V H[HUFLVH RI WKHGLDORJXHIURPsXO\5HDOW\2QHDGRSWHG6P\WKH DQFLOODU\MXULVGLFWLRQRYHUWKHHQWLUHDJUHHPHQWl,G,QVRIDU &UDPHUjV REOLJDWLRQ WR SUHSDUH D PHPRULDOL]HG ZULWWHQ H[SUHVVLRQRIWKHVHWWOHPHQWWHUPVDVZHOODVWRmKDQGOHWKH GHWDLOVl RI WKH DJUHHPHQW ZLWKLQ IRUW\ILYH GD\V KHUHE\ RUGHUHG WR WXUQ RYHU WR WKH 'HIHQGDQWV DQ\ DQG DOO FRSLHV RI WKH 5HFHLYHU V )LUVW ,QWHULP 5HSRUW DV ZHOO DV DQ\ GUDIWV $V 5(0$; DQG 6P\WKH &UDPHU KDG QHDUO\ FRPSOHWHG UHFRUGLQJ WKHUHRI RU DQ\ RWKHU GRFXPHQWV ZKLFK KH PD\ KDYH REWDLQHG RU WKH WHUPV RI WKHLU DJUHHPHQW WKH 5(0$;jV &KDLUPDQ 0U /LQLJHU JHQHUDWHG DV D UHVXOW RI WKH SHUIRUPDQFH RI KLV GXWLHV DV 5HFHLYHU VWDWHG m7KLV EHFRPHV HIIHFWLYH WRGD\ DQG ZH ZRXOG MXVW KDQGOH WKH KHUHLQ GHWDLOV"l s$ DW 6KRUWO\ WKHUHDIWHU 6P\WKH &UDPHUjV &KDLUPDQ /XFLXV 0F.HOYH\ FRQILUPHG WKDW GRFXPHQWDWLRQ ZRXOG EH SUHSDUHG WR 0F$OSLQ Y /H[LQJWRQ $XWR 7UXFN 6WRS ,QF )G WK PHPRULDOL]H WKH SDUWLHV DJUHHPHQW DQG 5(0$;jV FRXQVHO 7HUUHQFH &LU 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO DV WKH ILUVW .RNNRQHQ H[FHSWLRQ ZDV QRW WKH EDVLV IRU RXU IDFWXDOILQGLQJIRUDQDEXVHRIGLVFUHWLRQ7KHUPD6FDQ,QF GHFLVLRQLQ0F$OSLQWKHODQJXDJHWRZKLFK5HDOW\2QHSRLQWV Y7KHUPRVFDQ,QF)GWK&LU:H LVGLFWDDQGWKHUHIRUHQRWELQGLQJRQWKLV&RXUW ZLOORQO\ILQGDQDEXVHRIGLVFUHWLRQRQO\ZKHQOHIWZLWKWKH mGHILQLWHDQGILUPFRQYLFWLRQWKDWWKHFRXUWFRPPLWWHGD 0RUHRYHUZHGRQRWEHOLHYHWKDW.RNNRQHQUHTXLUHVWKH FOHDUHUURURIMXGJPHQWLQWKHFRQFOXVLRQLWUHDFKHGXSRQD LQWHUSUHWDWLRQ PHQWLRQHG LQ 0F$OSLQ :KLOH 0F$OSLQ ZHLJKLQJ RI WKH UHOHYDQW IDFWRUVl RU ZKHUH LW mLPSURSHUO\ SXUSRUWV WR TXRWH WKH ZRUGV RI sXVWLFH 6FDOLD WKH SKUDVH DSSOLHVWKHODZRUXVHVDQHUURQHRXVOHJDOVWDQGDUGl+XH\Y mH[SUHVVO\ UHWDLQHG MXULVGLFWLRQl GRHV QRW DSSHDU LQ WKH 6WLQH )G WK &LU FLWDWLRQV DQG 6XSUHPH&RXUWjVGHFLVLRQLQ.RNNRQHQ,QVWHDG.RNNRQHQ LQWHUQDOTXRWDWLRQPDUNVRPLWWHG RQO\ UHTXLUHV D UHDVRQDEOH LQGLFDWLRQ WKDW WKH FRXUW KDV UHWDLQHG MXULVGLFWLRQ mVXFK DV D SURYLVLRQ µUHWDLQLQJ $9DOLGLW\RI6HWWOHPHQW$JUHHPHQW MXULVGLFWLRQjRYHUWKHVHWWOHPHQWDJUHHPHQWl.RNNRQHQ 86DWHPSKDVLVDGGHG,QWKLVZD\WKH&RXUWLQWHQGHG %HIRUH HQIRUFLQJ D VHWWOHPHQW D GLVWULFW FRXUW PXVW WR DYRLG VXEMHFWLYH LQWHUSUHWDWLRQV RI ZKDW D GLVWULFW FRXUW FRQFOXGH WKDW DJUHHPHQW KDV EHHQ UHDFKHG RQ DOO PDWHULDO LQWHQGHG WR DFFRPSOLVK WKURXJK LWV RUGHU RI GLVPLVVDO o D WHUPV%URFNY6FKHXQHU&RUS)GWK&LU SUDFWLFH HPSOR\HG E\ DSSHOODWH FRXUWV LQ FDVHV VXFK DV 2UGLQDULO\DQHYLGHQWLDU\KHDULQJLVUHTXLUHGZKHUH 0F&DOO%H\ Y )UDQ]HQ )G WK &LU IDFWVPDWHULDOWRDQDJUHHPHQWDUHGLVSXWHG.XNODY1DWj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mSXUVXDQW WR WKH WHUPV RI WKH 6HWWOHPHQW l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mDGYHUVHVSOLWlDQGm5(0$;EXVLQHVV LQWHQGHG WR KRQRU WKDW SURYLVLRQ DQG WR WKLV HQG GHFLGHG WR PRGHOlZHUHOHIWXQGHILQHGDWWKHsXO\FRXUWVHVVLRQ UHWDLQ MXULVGLFWLRQ RI WKH OLWLJDWLRQ IRU WKH YHU\ SXUSRVH RI GRHVQRWXQGHUPLQHWKHFUX[RIWKHDJUHHPHQW UHVSRQGLQJ WR WKH W\SH RI SHWLWLRQ WKDW WKH SODLQWLII ILOHG ,W ZRXOG RI FRXUVH KDYH EHHQ PXFK EHWWHU LI WKH MXGJH KDG PDGH DOO WKLV 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO ZKHUHDGLVWULFWFRXUWDPHQGHGLWVMXGJPHQWmWRSURYLGHIRU +RZHYHUZKLOHWKHFLUFXODUORJLFXVHGLQ0F&DOO%H\PD\ WKHFRXUWjVUHWHQWLRQRIMXULVGLFWLRQXQWLOFRPSOHWLRQRIWKH QRWVXUYLYH.RNNRQHQWKHWUDGLWLRQRIQRWUHTXLULQJWKHXVHRI SDUWLHVjREOLJDWLRQVXQGHUWKHVHWWOHPHQWDJUHHPHQWl:DVWH VSHFLILFWHUPLQRORJ\UHPDLQV6HHLGDWUHMHFWLQJWKH 0JPWRI2KLR,QFY&LW\RI'D\WRQ)G QRWLRQWKDWmWKHUHLVDQ\PDJLFIRUPRIZRUGVWKDWWKHMXGJH WK &LU KROGLQJ WKDW D GLVWULFW FRXUW KDG VXEMHFW PXVW LQWRQH LQ RUGHU WR PDNH WKH UHWHQWLRQ RI MXULVGLFWLRQ PDWWHUMXULVGLFWLRQWRDGGUHVVWKHVWDWHODZLVVXHVEHFDXVHWKH HIIHFWLYHl FRQVHQWGHFUHHVSHFLILFDOO\FRQIHUUHGMXULVGLFWLRQ6LPSO\ EHFDXVHDPDQGDWHLVH[FHHGHGLVQRUHDVRQWRUDLVHWKHEDUWR ,QSRVW.RNNRQHQGHFLVLRQVDSSHOODWHFRXUWVKDYHDGKHUHG WKHVDPHOHYHOLQHYHU\FLUFXPVWDQFH WRWKLVYLHZ)RUH[DPSOHLQ%HOOY6FKH[QD\GHU)G WK&LUWKH)LIWK&LUFXLWKHOGWKDWWKHGLVWULFW 7XUQLQJWRWKHODQJXDJHRIsXGJH*ZLQjVRUGHUZHEHOLHYH FRXUWKDGSURSHUO\UHWDLQHGMXULVGLFWLRQE\LQFOXGLQJODQJXDJH WKDWLWVDWLVILHGWKHVHFRQGH[FHSWLRQUHFRJQL]HGLQ.RNNRQHQ LQLWVGLVPLVVDORUGHUWKDWJDYHWKHSDUWLHVWKHULJKWWRUHRSHQ 7KH RUGHU VWDWHG WKDW DQ\ mVXEVHTXHQW RUGHU VHWWLQJ IRUWK WKH MXGJPHQW LI D VHWWOHPHQW ZDV QRW FRQVXPPDWHG ZLWKLQ GLIIHUHQWWHUPVDQGFRQGLWLRQVUHODWLYHWRWKHVHWWOHPHQWDQG VL[W\GD\V$OVRLQ)RUGY5HHVH)G GLVPLVVDO RI WKH ZLWKLQ DFWLRQ VKDOO VXSHUVHGH WKH ZLWKLQ WK&LUWKH6HYHQWK&LUFXLWERUURZHGWKHVXUYLYLQJ RUGHUls$DW2IFRXUVHWKHFRXUWPD\RQO\HQWHU ORJLFRI0F&DOO%H\LQKROGLQJWKDWLWZDVDSSDUHQWWKDWWKH VXEVHTXHQWRUGHUVLQYROYLQJWKHVHWWOHPHQWDJUHHPHQWLILWKDV GLVWULFWFRXUWLQWHQGHGWRUHWDLQMXULVGLFWLRQ7KH6HYHQWK UHWDLQHGMXULVGLFWLRQ7KXVWKHmFRQWLQXHGUROHIRUWKHFRXUW WKDW ZDV FRQWHPSODWHG DIWHU GLVPLVVDOl LV LQFOXGHG LQ WKH ODQJXDJHRIWKHRUGHULWVHOI,QUH%RQG)GDW FOHDUHU EXW ZH FRQFOXGH WKDW WKH SODLQWLII KDV VKRZQLI :H WKHUHIRUH ILQG WKDW WKLV ZDV D mVHSDUDWH SURYLVLRQl EDUHO\WKDW WKH MXGJH GLG UHWDLQ MXULVGLFWLRQ RI WKH FDVH UHWDLQLQJMXULVGLFWLRQLQFRPSOLDQFHZLWK.RNNRQHQDQGKROG WKDW WKH GLVWULFW FRXUW SURSHUO\ DVVHUWHG VXEMHFW PDWWHU 0F&DOO%H\ Y )UDQ]HQ )G WK &LU MXULVGLFWLRQ 7KH %HOO FRXUW H[SODLQHG ,,7(5062)6800$5<(1)25&(0(17 7KH RUGHU VWDWHV WKDW WKH FRXUW mKDYLQJ EHHQ DGYLVHG E\ FRXQVHO IRU WKH SDUWLHV WKDW WKH DERYH DFWLRQ KDV EHHQ VHWWOHGl ZDV :HQRZDGGUHVV5HDOW\2QHjVFODLPWKDWWKHGLVWULFWFRXUW GLVPLVVLQJ WKH FDVH mZLWKRXW SUHMXGLFH WR WKH ULJKW XSRQ JRRG HUUHGE\HQIRUFLQJWHUPVWRZKLFK5HDOW\2QHKDGQRWDJUHHG FDXVH VKRZQ ZLWKLQ VL[W\ GD\V WR UHRSHQ LW LI VHWWOHPHQW LV 7KLV&RXUWUHYLHZVIRUFOHDUHUURUWKHGLVWULFWFRXUWjVIDFWXDO QRW FRQVXPPDWHG DQG VHHN VXPPDU\ MXGJPHQW DQG HQIRUFLQJ WKH GHWHUPLQDWLRQWKDWWKHSDUWLHVKDGDJUHHGWRVHWWOHPHQWWHUPV FRPSURPLVHl KRZHYHU ZHUHYLHZWKHGLVWULFWFRXUWjVGHFLVLRQWRJUDQWD %HOO Y 6FKH[QD\GHU )G WK &LU PRWLRQ WR HQIRUFH WKH VHWWOHPHQW EDVHG RQ LWV SUHOLPLQDU\ 7KH RUGHU LQ )RUG GLVPLVVHG WKH VXLW mZLWKRXW SUHMXGLFH WR UHLQVWDWHPHQW LQ WKH HYHQW WKDW WKH SD\PHQWV DUH QRW PDGH E\ WKH GHIHQGDQW l )RUG Y 5HHVH )G WK &LU :H DUH OLNHZLVH XQGHWHUUHG E\ WKH IDFW WKDW sXGJH *ZLQjV VXEVHTXHQW RUGHU RI HQIRUFHPHQW FRQWDLQHG WKH VHQWHQFH m7KLV &RXUW VKDOO UHWDLQ FRQWLQXLQJ MXULVGLFWLRQ WR HQIRUFH WKH SURYLVLRQV RI WKLV MXGJPHQWl ,W FDQQRW EH VDLG WKDW DOO RI WKH 6HYHQWK &LUFXLWjV UHDVRQLQJ LQ s$ DW $IWHU 5HDOW\ 2QH DWWDFNHG WKH FRXUWjV MXULVGLFWLRQ LQLWLDOO\ 0F&DOO%H\ LV PHDQLQJOHVV LQ WKH ZDNH RI .RNNRQHQ ,QGHHG WKH FRXUW LW FRXOG RQO\ EH H[SHFWHG WR WDNH HYHU\ SUHFDXWLRQ LQ WKH IXWXUH UHFRJQL]HG LQ 0F&DOO%H\ WKDW m>W@KHUH PXVW EH D GHOLEHUDWH UHWHQWLRQ RI 5H0D[,QWjO,QFHWDOY 1R 1R 5H0D[,QWjO,QFHWDOY 5HDOW\2QH,QFHWDO 5HDOW\2QH,QFHWDO &LUFXLWUHFHQWO\HPSOR\HGWKLVORJLFDJDLQLQ,QUH%RQG 0F$OSLQDQG&DXGLOOGLGQRWVHWWOHWKHLVVXHZHQRZGHFLGH )GWK&LU 6HH+LQGVGDOHY)DUPHUV1DWj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mZLWKOHDYHIRU VXFKDQDUURZFRQVWUXFWLRQRIDGLVWULFWFRXUWjVMXULVGLFWLRQ JRRG FDXVH VKRZQ ZLWKLQ QLQHW\ GD\V WR KDYH WKH 6HHHJ$UR&RUSY$OOLHG:LWDQ&R)G GLVPLVVDOVHWDVLGHDQGWKHDFWLRQUHLQVWDWHGLIWKHVHWWOHPHQW WK &LU KROGLQJ WKDW IHGHUDO FRXUWV KDYH LQKHUHQW LVQRWFRQVXPPDWHGl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m62 25'(5('l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l 6HH 0F&DOO%H\ )G DW ,W LV +HUHE\ 6WLSXODWHG DQG $JUHHG E\ DQG EHWZHHQ WKH XQGHUVLJQHG DWWRUQH\V IRU WKH SDUWLHV WKDW WKH DERYHFDSWLRQHG 5XOH D SURYLGHV DFWLRQ LV GLVPLVVHG ZLWK SUHMXGLFH DQG ZLWKRXW FRVWV WR DQ\ SDUW\ H[FHSW DV VHW IRUWK LQ WKH 6HWWOHPHQW $JUHHPHQW DPRQJ WKH ([FHSW DV SURYLGHG LQ SDUDJUDSK RI WKLV VXEGLYLVLRQ RI WKLV SDUWLHV GDWHG sDQXDU\ UXOH DQ DFWLRQ VKDOO QRW EH GLVPLVVHG DW WKH SODLQWLII V LQVWDQFH VDYH XSRQ RUGHU RI WKH FRXUW DQG XSRQ VXFK WHUPV DQG FRQGLWLRQV 6FHOVD Y &LW\ 8QLY RI 1< )G G &LU
Re/Max Intl Inc v. Realty One, Inc. (Re/Max Intl Inc v. Realty One, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.