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

s,00,( /(( 6,03621 ; 3HWLWLRQHU$SSHOODQW    1R  Y  !  .857 s21(6:DUGHQ  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1R n$UWKXUs7DUQRZ'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG 'HFHPEHU %HIRUH %2**6DQG68+5+(,15,&+&LUFXLWsXGJHV DQG$/'5,&+'LVWULFWsXGJH

7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl ILOHG RQ 'HFHPEHU   2Q sDQXDU\   WKH FRXUW GHVLJQDWHG WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ

7KH +RQRUDEOH $QQ $OGULFK 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  6LPSVRQYsRQHV 1R 

BBBBBBBBBBBBBBBBB &2816(/ $5*8(' sDPHV6WHUOLQJ/DZUHQFH'HWURLW0LFKLJDQIRU $SSHOODQW/DXUD*UDYHV0RRG\$66,67$17$77251(< *(1(5$/ +$%($6 &25386 ',9,6,21 /DQVLQJ 0LFKLJDQ IRU $SSHOOHH  21 %5,()   sDPHV 6WHUOLQJ /DZUHQFH 'HWURLW 0LFKLJDQ IRU $SSHOODQW  9LQFHQW s /HRQH $66,67$17 $77251(< *(1(5$/ +$%($6 &25386 ',9,6,21 /DQVLQJ 0LFKLJDQ IRU $SSHOOHH sLPPLH/HH6LPSVRQ1HZ+DYHQ0LFKLJDQSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2**6&LUFXLWsXGJH3HWLWLRQHUDSSHOODQWsLPPLH/HH 6LPSVRQZDVFRQYLFWHGRIILUVWGHJUHHIHORQ\PXUGHUXQGHU 0,&+ &203 /$:6†RQ$SULO 2Q$SULO  6LPSVRQZDVVHQWHQFHGWROLIHLQSULVRQZLWKRXW SDUROH  6LPSVRQ QRZ DSSHDOV D GLVWULFW FRXUW GHFLVLRQ GHQ\LQJ KLV SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV XQGHU  86&†:HDIILUP , 6LPSVRQjVDUUHVWDQGFRQYLFWLRQDULVHIURPDUREEHU\WKDW RFFXUUHGRQ0D\ LQDWZRIDPLO\IODWLQ'HWURLW 0LFKLJDQ  %DUEDUD %DUQKLOO DQG KHU KXVEDQG OLYHG LQ WKH XSSHUIODW%DUQKLOOjV\HDUROGXQFOH0LOWRQsRQHVDQG  \HDUROGZKHHOFKDLUERXQGDXQW0DXGHsRQHVOLYHGLQWKH ORZHUIODW%DUQKLOOZDVLQWKHORZHUIODWYLVLWLQJKHUDXQWDQG XQFOHZKHQWKHGRRUEHOOUDQJ:KHQ0UsRQHVDQVZHUHGWKH GRRUWKUHHPHQIRUFLEO\HQWHUHGWKHKRXVHSXVKLQJ0UsRQHV WRWKHIORRU%DUQKLOOGHVFULEHGWKHWKUHHPHQLQWKHIROORZLQJ ZD\ RQHZDVWDOODQGWKLQ RQHZDVPXVFXODUDQGKDGDGDUN FRPSOH[LRQ DQGRQHZDVVKRUWKDGDOLJKWFRPSOH[LRQDQG ZDVZHDULQJD\HOORZMDFNHW6LPSVRQZDVLGHQWLILHGDVWKH PXVFXODUPDQZLWKDGDUNFRPSOH[LRQ7KHWDOOWKLQPDQ 1R  6LPSVRQYsRQHV 

ZDVLGHQWLILHGDVsRVHSK6LPSVRQ6LPSVRQjVEURWKHU7KH VKRUWPDQZLWKWKHOLJKWFRPSOH[LRQDQGZHDULQJWKH\HOORZ MDFNHWZDVLGHQWLILHGDV'DYLG.LGGDMXYHQLOH %DUQKLOOWHVWLILHGWKDWsRVHSK6LPSVRQUHPRYHGKHUMHZHOU\ DQG LQVWUXFWHG KHU WR OLH RQ WKH FRXFK DQG FRYHU KHU IDFH %DUQKLOOGLGDVVKHZDVWROGEXWORRNHGWKURXJKKHUILQJHUV DQGREVHUYHG6LPSVRQGHPDQGLQJPRQH\IURPKHUDXQWDQG XQFOH0UsRQHVWROG6LPSVRQWKDWKHDQG0UVsRQHVGLGQRW KDYH DQ\ PRQH\  0U sRQHV DWWHPSWHG WR JHW XS IURP WKH IORRUFDXVLQJ6LPSVRQWRKLW0UsRQHVLQWKHKHDGVHYHUDO WLPHV NQRFN KLP GRZQ DQG NLFN KLP  :KHQ 0UV sRQHV DWWHPSWHGWRKHOS0UsRQHV6LPSVRQKLWKHUNQRFNLQJKHU RXWRIKHUZKHHOFKDLU 7KHWKUHHPHQHYHQWXDOO\OHIWWKHKRXVHDQGIOHGWKHVFHQH LQ%DUQKLOOjVFDU%DUQKLOODQG0UsRQHVZHUHWDNHQWRWKH KRVSLWDOZKHUH0UsRQHVGLHGDVDUHVXOWRIPXOWLSOHEOXQW IRUFHLQMXULHVWRWKHKHDGDQGFKHVW %DUQKLOO WHVWLILHG DW WULDO DV GLG .LGG ZKR WHVWLILHG SXUVXDQW WR DQ DJUHHPHQW LQ ZKLFK KH SOHDGHG JXLOW\ WR VHFRQGGHJUHHPXUGHULQH[FKDQJHIRUWHVWLI\LQJDJDLQVWKLV DFFRPSOLFHV  .LGG LGHQWLILHG 6LPSVRQ DV RQH RI WKH SHUSHWUDWRUVRIWKHUREEHU\,QDGGLWLRQ.LGGFRUURERUDWHG PXFKRI%DUQKLOOjVWHVWLPRQ\ $MXU\IRXQG6LPSVRQJXLOW\RIIHORQ\PXUGHUDQGXQDUPHG UREEHU\6LPSVRQZDVODWHUVHQWHQFHGE\WKHWULDOFRXUWWROLIH LQSULVRQZLWKRXWSDUROHIRUWKHIHORQ\PXUGHUFRQYLFWLRQDQG WHQ WR ILIWHHQ \HDUV LQ SULVRQ IRU WKH XQDUPHG UREEHU\ FRQYLFWLRQ ,, 7KH UHVROXWLRQ RI WKLV FDVH LQYROYHV FRPSOH[ LVVXHV RI SURFHGXUDO GHIDXOW  7KHUHIRUH LW LV QHFHVVDU\ WR SURYLGH D GHWDLOHGSURFHGXUDOKLVWRU\ $IWHUKLVFRQYLFWLRQDQGVHQWHQFH6LPSVRQDSSHDOHGWRWKH 0LFKLJDQ &RXUW RI $SSHDOV UDLVLQJ IRXU LVVXHV  6LPSVRQ  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV 

FODLPHGWKDW  KLVVHQWHQFHRIOLIHLQSULVRQZLWKRXWSDUROH ZDVXVHGDVDGHVFULSWLRQWRGLVWLQJXLVK6LPSVRQIURPWKH YLRODWHGKLVULJKWWREHIUHHRIFUXHODQGXQXVXDOSXQLVKPHQW RWKHU WZR SDUWLFLSDQWV LQ WKH FULPH DQG ZDV QRW D UDFLDO  WKHSURVHFXWRUjVRSHQLQJVWDWHPHQWGLYXOJHGWKHSHQDOW\ VWHUHRW\SH IRUWKHRIIHQVHFKDUJHGDQGWKXVYLRODWHG6LPSVRQjVULJKWWR DIDLUWULDO  WKHSURVHFXWRULPSHUPLVVLEO\YRXFKHGIRUWKH 9,, FUHGLELOLW\ RI RQH RI KLV ZLWQHVVHV DQG   WKH SURVHFXWRU LPSHUPLVVLEO\DSSHDOHGWRWKHV\PSDWKLHVRIWKHMXURUV2Q :KHQ D SHWLWLRQHU IDLOV WR HVWDEOLVK FDXVH WR H[FXVH D 2FWREHU WKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG SURFHGXUDOGHIDXOWDFRXUWGRHVQRWQHHGWRDGGUHVVWKHLVVXH 6LPSVRQjV FRQYLFWLRQV  7KH 0LFKLJDQ 6XSUHPH &RXUW RISUHMXGLFH6HH6PLWKY0XUUD\86   UHYLHZHGWKHGHFLVLRQDQGGHQLHGUHOLHIRQ0D\   /RQJ Y 0F.HHQ  )G    WK &LU     7KH GLVWULFW FRXUW KRZHYHU ZHQW RQ WR DGGUHVV WKH LVVXH RI 6LPSVRQILOHGDPRWLRQIRUUHOLHIIURPMXGJPHQWZLWKWKH SUHMXGLFHE\DQDO\]LQJWKHVXEVWDQFHRIHDFKRI6LPSVRQjV WULDOFRXUWRQ0D\ UDLVLQJIRXUQHZLVVXHV6LPSVRQ FODLPV:HEHOLHYHWKDWWKHGLVWULFWFRXUWSURSHUO\H[SOLFDWHG FODLPHG WKDW    KH ZDV GHQLHG HIIHFWLYH DVVLVWDQFH RI WKH UHDVRQV ZK\ 6LPSVRQjV GHIDXOWHG FODLPV ODFN PHULW DSSHOODWHFRXQVHOZKHQKLVFRXQVHOIDLOHGWRUDLVHDFODLPRI 7KHUHIRUHZHZLOOQRWDGGUHVVWKHVHFODLPVIXUWKHUKHUH HUURUUHJDUGLQJDGPLVVLRQRIDSULRURIIHQVHDVLPSHDFKPHQW HYLGHQFH IDLOHG WR UDLVH D FODLP RI HUURU UHJDUGLQJ WKH 9,,, SURVHFXWRUjV YRXFKLQJ IRU WKH FUHGLELOLW\ RI D ZLWQHVV DQG IDLOHG WR DUJXH DWWHPSWV E\ WKH SURVHFXWRU WR DSSHDO WR WKH )RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKHGLVWULFWFRXUW V\PSDWKLHV RI WKH MXURUV    KH ZDV GHQLHG HIIHFWLYH LV$)),50('DQGWKHSULVRQHUjVSHWLWLRQIRUKDEHDVFRUSXV DVVLVWDQFHRIWULDOFRXQVHOVLQFHFRXQVHOGLGQRWLPSHDFKRQH LV'(1,(' RI WKH SURVHFXWLRQjV ZLWQHVVHV ZLWK WKH ZLWQHVVjV SULRU MXYHQLOHDGMXGLFDWLRQV   KHZDVGHQLHGHIIHFWLYHDVVLVWDQFH RIWULDOFRXQVHOE\WKHIDLOXUHRIWULDOFRXQVHOWRDUJXHSURSHUO\ LVVXHVUHODWHGWR6LPSVRQjVLQWHQWLRQWRWHVWLI\ZHUHKLVSULRU FRQYLFWLRQQRWDGPLWWHG DQG  KLVFRQYLFWLRQVIRUIHORQ\ PXUGHUDQGXQDUPHGUREEHU\YLRODWHGGRXEOHMHRSDUG\2Q sDQXDU\    WKH WULDO FRXUW GHQLHG 6LPSVRQjV PRWLRQ ZLWKUHVSHFWWRHYHU\LVVXHH[FHSWWKHGRXEOHMHRSDUG\FODLP IRUZKLFKLWJUDQWHGUHOLHIVHWWLQJDVLGH6LPSVRQjVXQDUPHG UREEHU\FRQYLFWLRQ6LPSVRQGLGQRWDSSHDOWKHWULDOFRXUWjV GHFLVLRQ ,QsDQXDU\ 6LPSVRQILOHGDVHFRQGPRWLRQIRUUHOLHI IURPMXGJPHQWUDLVLQJWKHIROORZLQJVL[FODLPV   WKHWULDO FRXUWDSSOLHGWKHZURQJWHVWLQGHFLGLQJWRDOORZ6LPSVRQWR EH LPSHDFKHG ZLWK D SULRU FRQFHDOHG ZHDSRQV FRQYLFWLRQ  6LPSVRQZDVGHQLHGHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHO ZKHQFRXQVHOIDLOHGWRLQYHVWLJDWH.LGGjVMXYHQLOHUHFRUGDQG IDLOHG WR REMHFW WR SURVHFXWRULDO PLVFRQGXFW DQG HUURQHRXV  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV 

9, MXU\ LQVWUXFWLRQV    6LPSVRQ ZDV GHQLHG D IDLU WULDO E\ SURVHFXWRULDOPLVFRQGXFWLQFOXGLQJWKHSURVHFXWRUYRXFKLQJ 6LPSVRQ GLG QRW SURFHGXUDOO\ GHIDXOW FODLP ,9' ZKLFK IRUWKHFUHGLELOLW\RIWZRH\HZLWQHVVHVDUJXLQJIDFWVRXWVLGH DOOHJHG WKDW 6LPSVRQ ZDV GHQLHG D IDLU WULDO DQG RWKHU WKHUHFRUGUHODWHGWRDGHDOJLYHQWRWKHDFFRPSOLFHWRWHVWLI\ FRQVWLWXWLRQDO ULJKWV E\ WKH SURVHFXWRU LPSURSHUO\ XVLQJ DSSHDOLQJ WR MXURUVj UDFLDO VWHUHRW\SHV DQG DUJXLQJ WKDW DSSHDOVIRUV\PSDWK\DQGUDFLDOVWHUHRW\SHV$VDUHVXOWZH GHIHQVH FRXQVHO XVHG KLV IRUHQVLF VNLOOV WR IRRO WKH MXU\ UHYLHZWKHPHULWVRIWKLVFODLP  WKHWULDOFRXUWHUUHGE\QRWLQVWUXFWLQJWKHMXU\WKDWDQDLGHU DQGDEHWWRUPXVWVKDUHLQWKHLQWHQWRIWKHSULQFLSDODQGE\ 6LPSVRQ FODLPV WKDW WKH SURVHFXWRU LQDSSURSULDWHO\ LQYDGLQJ WKH SURYLQFH RI WKH MXU\ E\ GHFLGLQJ .LGGjV DSSHDOHGIRUV\PSDWK\E\DVNLQJWKHMXURUVWRSXWWKHPVHOYHV FUHGLELOLW\   WKHWULDOFRXUWLPSURSHUO\DGPRQLVKHGGHIHQVH LQWKHSODFHRIORYHGRQHVRIWKHYLFWLPV'XULQJYRLUGLUH FRXQVHO DQG GHQLJUDWHG FRXQVHOjV FURVVH[DPLQDWLRQ RI WKH WKHSURVHFXWRUPHQWLRQHGWKDWWKHSURVSHFWLYHMXURUVZRXOG DFFRPSOLFHEHIRUHWKHMXU\ DQG  WKHWULDOFRXUWHUUHGZKHQ ZDQWDIDLUMXU\LIDIULHQGRUUHODWLYHZDVFKDUJHGZLWKIHORQ\ LWIRXQGGXHGLOLJHQFHZLWKUHVSHFWWRWKHSURVHFXWLRQjVIDLOXUH PXUGHUDQGWKH\ZRXOGHTXDOO\ZDQWDIDLUMXU\LIDIULHQGRU WRSURGXFHDSDUWLFXODUZLWQHVV2Q0D\ WKHWULDO UHODWLYHZDVWKHYLFWLPRIIHORQ\PXUGHU7KLVZDVPHUHO\ FRXUWGHQLHG6LPSVRQjVPRWLRQRQSURFHGXUDOJURXQGVQRWLQJ LPSUHVVLQJRQMXURUVWKHLPSRUWDQFHRIWKHLUWDVNDQGZDVQRW WKDW6LPSVRQUDLVHGQRLVVXHVWKDWKDGQRWEHHQSUHYLRXVO\ LPSURSHU DGGUHVVHG E\ WKH WULDO FRXUW DQG WKH 0LFKLJDQ &RXUW RI $SSHDOV,QDGGLWLRQWKHFRXUWEULHIO\DGGUHVVHGDQGUHMHFWHG 'XULQJ FORVLQJ DUJXPHQW WKH SURVHFXWRU VWDWHG m$VN 6LPSVRQjV DUJXPHQWV RQ WKH PHULWV  6LPSVRQ ILOHG DQ \RXUVHOILI\RXKDGDORYHGRQHRUKDGDUHODWLYHRUDIULHQG DSSOLFDWLRQ IRU OHDYH WR DSSHDO WR WKH 0LFKLJDQ &RXUW RI ZKRZDVLQDVLWXDWLRQOLNHWKDWZKHQWKUHHlEHIRUH $SSHDOV6LPSVRQUDLVHGWKHVDPHVL[FODLPVKHUDLVHGLQWKH 6LPSVRQ REMHFWHG  7KH REMHFWLRQ ZDV RYHUUXOHG EXW WKH WULDOFRXUW+HDOVRFRQWHVWHGWKHWULDOFRXUWjVGHWHUPLQDWLRQV SURVHFXWRUGLGQRWFRQWLQXHRUUHSHDWWKHVWDWHPHQW,QRUGHU RI SURFHGXUDO GHIDXOW  2Q 2FWREHU    WKH &RXUW RI WRSUHYDLORQDFODLPRISURVHFXWRULDOPLVFRQGXFWDKDEHDV $SSHDOV GHQLHG WKH DSSOLFDWLRQ RQ WKH EDVLV RI 0&5 SHWLWLRQHU PXVW GHPRQVWUDWH WKDW WKH VWDWHPHQWV RI WKH  '   6LPSVRQ WKHQ ILOHG DQ DSSOLFDWLRQ IRU OHDYH WR SURVHFXWRUmVRLQIHFWHGWKHWULDOZLWKXQIDLUQHVVDVWRPDNH DSSHDO WR WKH 0LFKLJDQ 6XSUHPH &RXUW EDVHG RQ WKH VDPH WKHUHVXOWLQJFRQYLFWLRQDGHQLDORIGXHSURFHVVl'RQQHOO\Y LVVXHVKHKDGUDLVHGLQWKH&RXUWRI$SSHDOV7KLVDSSOLFDWLRQ 'H&KULVWRIRUR86   ,QRUGHUWRGHQ\ ZDVGHQLHGRQsXO\ RQWKHEDVLVRI0&5 '  GXHSURFHVVWKHPLVFRQGXFWPXVWEHmµVRSURQRXQFHGDQG SHUVLVWHQWWKDWLWSHUPHDWHVWKHHQWLUHDWPRVSKHUHRIWKHWULDOj 2Q$SULO 6LPSVRQILOHGDSHWLWLRQIRUDZULWRI RUµVRJURVVDVSUREDEO\WRSUHMXGLFHWKHGHIHQGDQWjl3ULFKHWW KDEHDVFRUSXVLQIHGHUDOFRXUW7KLVSHWLWLRQZDVEDVHGRQWKH Y 3LWFKHU  )G    WK &LU     7KH VDPHLVVXHV6LPSVRQUDLVHGWRWKH0LFKLJDQ&RXUWRI$SSHDOV SURVHFXWRUjVFRPPHQWVZHUHQRWLPSURSHUDQGHYHQLIWKH\ DQGWKH0LFKLJDQ6XSUHPH&RXUWLQKLVDSSOLFDWLRQVIRUOHDYH ZHUHWKH\ZHUHEULHIDQGLVRODWHGDQGWKXVGLGQRWULVHWRD WR DSSHDO WKH WULDO FRXUWjV GHQLDO RI KLV VHFRQG PRWLRQ IRU OHYHOWKDWZRXOGGHQ\6LPSVRQjVULJKWWRGXHSURFHVV UHOLHI IURP MXGJPHQW  6SHFLILFDOO\ 6LPSVRQ UDLVHG WKH IROORZLQJJURXQGV 6LPSVRQ DOVR FODLPV WKDW WKH SURVHFXWRU LQDSSURSULDWHO\ XVHGUDFLDOVWHUHRW\SHV6LPSVRQFODLPVWKDWWKHSURVHFXWRU , :DV WKH ORZHU FRXUWjV GHFLVLRQ RQ ZKHWKHU 0U UHSHDWHGO\DQGLPSURSHUO\FDOOHG6LPSVRQmWKHGDUNVNLQQHG 6LPSVRQKDGRYHUFRPHWKHSURFHGXUDOKXUGOHVRI RQHlDQGHQFRXUDJHG%DUQKLOOWRXVHWKLVGHVFULSWLRQGXULQJ 0&5  RU ZKHWKHU WKHLU DSSOLFDWLRQ WR WKH KHUWHVWLPRQ\:HDJUHHZLWKWKHGLVWULFWFRXUWWKDWWKHSKUDVH  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV 

LQVWDQWFDVHZRXOGGHQ\GXHSURFHVVRIODZWRWKH 6LPSVRQGLGQRWREMHFWWRWKHSURVHFXWRUj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j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jV FODLPV ERWK RQ SURFHGXUDO DQG WKHIROORZLQJDFWLRQVRIWKHSURVHFXWRU VXEVWDQWLYHJURXQGV$QDOWHUQDWLYHKROGLQJLQZKLFKDVWDWH $ 7KH SURVHFXWRU YRXFKHG IRU WKH SURFHGXUDO EDU LV D VXIILFLHQW EDVLV IRU WKH VWDWH FRXUWjV WUXWKIXOQHVVRIKLVFDVHDQGWKHFUHGLELOLW\ MXGJPHQWLVDGHTXDWHWRSUHFOXGHDFODLPIURPEHLQJUDLVHGRQ RIKLVZLWQHVVHV  KDEHDVUHYLHZHYHQZKHQWKHVWDWHFRXUWDOVRUHOLHVRQIHGHUDO % 7KH SURVHFXWRU DUJXHG IDFWV RXWVLGH WKH ODZ6HH&RH)GDW FLWLQJ+DUULV 86DW UHFRUGWRGLOXWHWKHHIIHFWRIWKHGHDOJLYHQ Q 6HFRQG6LPSVRQFODLPVWKDWWKHIDLOXUHWRREMHFWUXOH WRWKHDFFRPSOLFHDQGKHDOVRWHVWLILHGWR LV QRW VWULFWO\ DQG UHJXODUO\ IROORZHG E\ 0LFKLJDQ FRXUWV YRXFKIRU0UV%DUQKLOOjVFUHGLELOLW\ 7KLV FRXUW KRZHYHU LQ UHMHFWLQJ D FODLP RI SURVHFXWRULDO & 7KHSURVHFXWRUSXUSRVHO\PLVVWDWHGWKHODZ PLVFRQGXFW KDV UXOHG WKDW WKH IDLOXUH WR REMHFW UXOH LV RQWKHEXUGHQRISURRI UHJXODUO\IROORZHGLQ0LFKLJDQ6HH'UDSHUY$GDPV1R ' 7KHSURVHFXWRUXVHGDSSHDOVIRUV\PSDWK\ :/DW  WK&LU0D\ DQGXVHGUDFLDOVWHUHRW\SHVDQGRWKHUIHDU XQSXEOLVKHG WDEOH GHFLVLRQ   7KHUHIRUH WKH GLVWULFW FRXUW WDFWLFVLQRUGHUWRREWDLQDFRQYLFWLRQ DQG SURSHUO\UXOHGWKDW6LPSVRQjVFODLP,9$ZDVSURFHGXUDOO\ ( 7KHSURVHFXWRUGLOXWHGWKHSUHVXPSWLRQRI GHIDXOWHG LQQRFHQFHE\DUJXLQJWKDWGHIHQVHFRXQVHO XVHGKLVIRUHQVLFVNLOOVWRIRROWKHMXU\"  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV 

WKLVFRXUWVKRXOGORRNWRWKHODVWmUHDVRQHGVWDWHMXGJPHQWl 9 :DV0U6LPSVRQGHQLHGKLVULJKWWRDIDLUWULDO FODLPLQJWKDWWKH0LFKLJDQ6XSUHPH&RXUWjVMXGJPHQWLVQRW DQG WR WULDO E\ MXU\ ZKHQ WKH FRXUW GLG WKH DGHTXDWHO\ H[SODLQHG  6HH <OVW  86 DW   7KLV IROORZLQJGXULQJMXU\LQVWUXFWLRQV GLUHFWLYH DSSOLHV RQO\ ZKHQ D IHGHUDO FRXUW LQ D KDEHDV $ 7KHWULDOFRXUWLQYDGHGWKHSURYLQFHRIWKH SURFHHGLQJDWWHPSWVWRGHWHUPLQHmZKHWKHUDQXQH[SODLQHG MXU\ZKHQLWGHFODUHGWKDWWKHDFFRPSOLFH RUGHU E\ ZKLFK ZH PHDQ DQ RUGHU ZKRVH WH[W RU ZDVJXLOW\RIWKHFULPHVFKDUJHG DQG DFFRPSDQ\LQJRSLQLRQGRHVQRWGLVFORVHWKHUHDVRQIRUWKH % 7KHWULDOFRXUWHUUHGZKHQLWLQVWUXFWHGWKH MXGJPHQW UHVWVSULPDULO\RQIHGHUDOODZl,GDW7KH MXU\ WKDW LW FRXOG FRQYLFW DQ DLGHU DQG 0LFKLJDQ6XSUHPH&RXUWjVMXGJPHQWLVQRWXQH[SODLQHG7KH DEHWWRU RQ PHUH NQRZOHGJH RI WKH FRXUWH[SUHVVO\VWDWHGWKDW6LPSVRQjVFODLPVZHUHEDUUHGE\ SULQFLSDOjVLQWHQW" 0&5 '  9, 'LGWKHWULDOFRXUWjVFRPPHQWVFRQFHUQLQJGHIHQVH 6LPSVRQDOVRDUJXHVWKDWWKH0LFKLJDQ6XSUHPH&RXUWj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mFDQGHPRQVWUDWHFDXVH 'DZVRQ DQG UHIXVHG WR LQVWUXFW WKH MXU\ RQ WKH IRUWKHGHIDXOWDQGDFWXDOSUHMXGLFHDVDUHVXOWRIWKHDOOHJHG LQIHUHQFHWREHGUDZQIURPDPLVVLQJUHVJHVWDH YLRODWLRQ RI IHGHUDO ODZ RU FDQ GHPRQVWUDWH WKDW IDLOXUH WR ZLWQHVV" FRQVLGHUWKHFODLPVZLOOUHVXOWLQDIXQGDPHQWDOPLVFDUULDJH RIMXVWLFHl&RH)GDW 5HJDUGOHVVRIWKHVRXUFH 2Q0D\ WKHGLVWULFWFRXUWGHQLHGWKHSHWLWLRQDQG XSRQ ZKLFK 6LPSVRQ UHOLHV LW LV WKH SULVRQHUjV EXUGHQ WR GLVPLVVHGWKHDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXV7KH GHPRQVWUDWHFDXVHDQGSUHMXGLFH6HH&ROHPDQ86DW GLVWULFW FRXUW UHMHFWHG 6LPSVRQjV FODLP , DQG GLVPLVVHG  0&5 '  6LPSVRQGLGQRWPHHWKLVEXUGHQ 6LPSVRQjVFODLPV,,,,,$,,,%,,,&,9%,9&,9(9$9% WKHUHIRUHLWZDVQRWLQFXPEHQWXSRQWKH0LFKLJDQ6XSUHPH 9,DQG9,,DVEHLQJEDUUHGE\SURFHGXUDOGHIDXOWXQGHU0&5 &RXUWWRDGGUHVV6LPSVRQjVDUJXPHQWVUHJDUGLQJFDXVHDQG  '   7KH FRXUW KHOG WKDW 6LPSVRQjV FODLP ,9$ ZDV SUHMXGLFH EDUUHGRQWKHEDVLVRISURFHGXUDOGHIDXOWEHFDXVH6LPSVRQ KDGQRWREMHFWHGWRWKHVHUHPDUNVDWWULDO7KHFRXUWKHOGWKDW 9 6LPSVRQjVFODLP,9'ZDVQRWEDUUHGE\SURFHGXUDOGHIDXOW 7KH FRXUW DQDO\]HG WKLV FODLP DQG IRXQG WKDW LW GLG QRW ,QFODLP,9$6LPSVRQDOOHJHGWKDWWKHSURVHFXWRUHQJDJHG ZDUUDQWKDEHDVUHOLHI)XUWKHUPRUHWKHFRXUWDQDO\]HGHDFK LQ PLVFRQGXFW E\ YRXFKLQJ IRU WKH FUHGLELOLW\ RI ZLWQHVVHV RI 6LPSVRQjV RWKHU VXEVWDQWLYH FODLPV DQG UHMHFWHG WKRVH .LGGDQG%DUQKLOO7KLVFODLPZDV SURFHGXUDOO\GHIDXOWHG FODLPV DV JURXQGV IRU KDEHDV UHOLHI  6LPSVRQ ILOHG D EHFDXVH6LPSVRQGLGQRWREMHFWWRWKHSURVHFXWRUjVUHPDUNV FHUWLILFDWHRIDSSHDODELOLW\EDVHGRQDOORIWKHLVVXHVKHUDLVHG DWWULDO WRWKHGLVWULFWFRXUW7KHFHUWLILFDWHZDVJUDQWHGLQIXOOE\WKH GLVWULFWFRXUW &ODLP,9$ZDVUDLVHGE\6LPSVRQLQWKHGLUHFWDSSHDORI KLVFRQYLFWLRQ7KH0LFKLJDQ&RXUWRI$SSHDOVQRWHGWKDW  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV 

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jVDSSOLFDWLRQIRUOHDYHWRDSSHDOWKHWULDO LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ FRXUWjVGHQLDORIKLVVHFRQGPRWLRQIRUUHOLHIIURPMXGJPHQW HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH RQ6LPSVRQjVIDLOXUHWRFRPSO\ZLWK0&5 ' 7KH &RXUWRIWKH8QLWHG6WDWHV RU FRXUW VWDWHG WKDW 6LPSVRQ IDLOHG WR mPHHW WKH EXUGHQ RI   UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ HVWDEOLVKLQJ HQWLWOHPHQW WR UHOLHI XQGHU 0&5  ' l XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH :KLOHWKHMXGJPHQWZDVEULHILWZDVEDVHGRQDQLQGHSHQGHQW HYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ DQG DGHTXDWH VWDWH SURFHGXUDO UXOH  6LQFH WKH 0LFKLJDQ 6XSUHPH&RXUWZDVWKHODVWVWDWHFRXUWUHQGHULQJMXGJPHQWLQ 86&† G     WKHFDVHLWVGHFLVLRQGHQ\LQJ6LPSVRQjVFODLPVRQWKHEDVLV RIDVWDWHSURFHGXUDOEDUSUHYHQWVIHGHUDOKDEHDVUHYLHZ6HH &RXUWV KDYH GLIIHUHG DV WR WKHLU LQWHUSUHWDWLRQ RI 0RUDQY7ULSSHW1R  :/ DW  WK mXQUHDVRQDEOHDSSOLFDWLRQlDVLWDSSHDUVLQ† G  3XW &LU sXQH     XQSXEOLVKHG WDEOH GHFLVLRQ  UHMHFWLQJ VLPSO\ IHGHUDO FRXUWV DUH ERXQG E\ D VWDWH FRXUWjV KDEHDVSHWLWLRQRQEDVLVRISURFHGXUDOGHIDXOWZKHUH0LFKLJDQ GHWHUPLQDWLRQRIDSHWLWLRQHUjVFODLPVXQOHVVWKHGHFLVLRQE\ 6XSUHPH&RXUWUXOHGWKDWmGHIHQGDQWKDVIDLOHGWRPHHWWKH WKHVWDWHFRXUWLQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\ EXUGHQ RI HVWDEOLVKLQJ HQWLWOHPHQW WR UHOLHI XQGHU 0&5 HVWDEOLVKHGIHGHUDOODZ6HH)UDQNOLQY)UDQFLV)G  ' l    WK&LU  9DULRXVFRXUWVGLVDJUHHGDVWRWKH VWDQGDUG WR DSSO\ WR GHWHUPLQH ZKHWKHU D VWDWH FRXUW 6LPSVRQ DUJXHV WKDW WKH VWDWH FRXUW GLG QRW mFOHDUO\ DQG XQUHDVRQDEO\ DSSOLHG FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ  ,Q H[SUHVVO\l VWDWH WKDW LWV MXGJPHQW ZDV EDVHG RQ D VWDWH :LOOLDPV Y 7D\ORU  6 &W     WKH 6XSUHPH SURFHGXUDO UXOH  6HH +DUULV Y 5HHG   86   &RXUWUHVROYHGWKLVFRQIOLFW7KH&RXUWVWDWHGWKDWmDIHGHUDO     7KLV UHTXLUHPHQW RQO\ DSSOLHV ZKHQ D VWDWH FRXUW KDEHDVFRXUWPD\QRWLVVXHWKHZULWVLPSO\EHFDXVHWKDWFRXUW MXGJPHQWUHVWVSULPDULO\RQIHGHUDOODZRULVLQWHUZRYHQZLWK FRQFOXGHVLQLWVLQGHSHQGHQWMXGJPHQWWKDWWKHUHOHYDQWVWDWH IHGHUDOODZ6HH&RH)GDW   7KH 0LFKLJDQ FRXUW GHFLVLRQ DSSOLHG FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ 6XSUHPH &RXUW GHFLVLRQ ZDV EDVHG VROHO\ RQ WKH VWDWH HUURQHRXVO\RULQFRUUHFWO\5DWKHUWKDWDSSOLFDWLRQPXVWDOVR SURFHGXUDO UXOH KRZHYHU  7KHUHIRUH WKH mFOHDUO\ DQG EHXQUHDVRQDEOHl,ELG6WDWHGGLIIHUHQWO\mDIHGHUDOKDEHDV H[SUHVVO\lUHTXLUHPHQWGRHVQRWDSSO\6LPSVRQDUJXHVWKDW  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV

VWDWH ODZ QRW FRJQL]DEOH RQ KDEHDV UHYLHZ  6HH (VWHOOH Y FRXUWPD\JUDQWWKHZULWLIWKHVWDWHFRXUWLGHQWLILHVWKHFRUUHFW 0F*XLUH86   6PLWKY3KLOOLSV JRYHUQLQJ OHJDO SULQFLSOH IURP WKLV &RXUWjV GHFLVLRQV EXW 86     XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH SULVRQHUjVFDVHl,GDW7KH&RXUWQRWHGWKDWWKHWHUP 6LPSVRQJRHVRQWRDUJXHWKDWHYHQLI0&5 ' GRHV mXQUHDVRQDEOHlLVmQRGRXEWGLIILFXOWWRGHILQHlEXWWKH&RXUW DSSO\ LW VKRXOG QRW EDU WKHVH FODLPV EHFDXVH FHUWDLQ GLG QRW H[SRXQG RQ WKH ZRUGjV PHDQLQJ LQ WKLV FRQWH[W H[FHSWLRQVDSSO\)LUVW6LPSVRQDUJXHVWKDW0&5 ' LQVWHDGVWDWLQJWKDWmLWLVDFRPPRQWHUPLQWKHOHJDOZRUOG LV QRW VWULFWO\ DQG UHJXODUO\ IROORZHG  6HH sRKQVRQ Y DQG DFFRUGLQJO\ IHGHUDO MXGJHV DUH IDPLOLDU ZLWK LWV 0LVVLVVLSSL  86      DFFRUG 5RJHUV Y PHDQLQJl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mEHOLHYH>V@WKDWDVWDWHFRXUWLQFRUUHFWO\DSSOLHGIHGHUDOODZ UHJXODUO\IROORZHGDVRI 6HH/XEHUGDY7ULSSHWW >LW@PXVWUHIXVHWRLVVXHWKHZULWRIKDEHDVFRUSXVLI>LW@ILQGV )G WK&LU sRQHVY7RRPEV)G WKDW WKH VWDWH FRXUW V GHFLVLRQ ZDV D UHDVRQDEOH RQHl   WK&LU  6LPSVRQjVILUVWPRWLRQIRUUHOLHI 0DFKDFHNY+RIEDXHU)G   WK&LU VHH IURPMXGJPHQWZDVILOHGLQ DQGKLVVHFRQGPRWLRQIRU DOVR%XWFKHUY6WUDXE1R :/DW UHOLHIIURPMXGJPHQWZDVILOHGLQ /XEHUGDDQGsRQHV   WK&LUsXO\   XQSXEOLVKHGWDEOHGHFLVLRQ  LQGLFDWHWKDW0&5 ' ZDVUHJXODUO\IROORZHGDWWKRVH WLPHV :KHQDSSO\LQJWKH$('3$VWDQGDUGWKLVFRXUWUHYLHZVWKH GLVWULFWFRXUWjVGHQLDORIKDEHDVFRUSXVUHYLHZGHQRYR6HH 6LPSVRQDOVRFODLPVWKHSURFHGXUDOEDULVQRWDSSOLFDEOH +DUULV  )G DW   +HUEHUW Y %LOO\  )G  EHFDXVHKHKDVDFRORUDEOHFODLPRILQQRFHQFH6HH6FKOXSY  WK &LU     7KLV FRXUW ZLOO XSKROG WKH GLVWULFW 'HOR86    7KH6FKOXS&RXUWPDGHLWFOHDU FRXUWjVILQGLQJVRIIDFWXQOHVVWKH\DUHFOHDUO\HUURQHRXV6HH KRZHYHU WKDW WKH UHFRJQLWLRQ RI D FODLP RI LQQRFHQFH WKDW 6H\PRXUY:DONHU)G  WK&LU  DOORZV D KDEHDV FRXUW WR UHDFK WKH PHULWV RI D FDVH WKDW RWKHUZLVH LV SURFHGXUDOO\ GHIDXOWHG LV UHVHUYHG IRU D YHU\ ,9 QDUURZFODVVRIFDVHV,GDW6XFKDFODLPPXVWEHEDVHG RQ mQHZ UHOLDEOH HYLGHQFHl  ,G DW   6LPSVRQ VLPSO\ 7KHGLVWULFWFRXUWUXOHGWKDW6LPSVRQjVFODLPV,,,,,$,,,% UHDVVHUWV KLV HDUOLHU DOOHJDWLRQV VXSSRUWLQJ KLV FODLP RI ,,,&,9%,9&,9(9$9%9,DQG9,,ZHUHEDUUHGE\WKH LQQRFHQFHDQGSURYLGHVQRQHZVXSSRUWLQJHYLGHQFH7KLVLV GRFWULQH RI SURFHGXUDO GHIDXOW EDVHG RQ 0LFKLJDQjV QRWVXIILFLHQWIRUKLPWRRYHUFRPHWKHSURFHGXUDOEDURI0&5 SURFHGXUDOUXOH0&5 ' $SHWLWLRQHUSURFHGXUDOO\  '   0&5  ' VWDWHV LQ UHOHYDQW SDUW

7KH GHIHQGDQW KDV WKH EXUGHQ RI HVWDEOLVKLQJ HQWLWOHPHQW WR WKH UHOLHI UHTXHVWHG 7KH FRXUW PD\ QRW JUDQW UHOLHI WR WKH  6LPSVRQYsRQHV 1R  1R  6LPSVRQYsRQHV 

GHIDXOWV FODLPV IRU KDEHDV UHOLHI LI WKH SHWLWLRQHU KDV QRW $ SUHVHQWHGWKRVHFODLPVWRWKHVWDWHFRXUWVLQDFFRUGDQFHZLWK WKHVWDWHjVSURFHGXUDOUXOHV6HH:DLQZULJKWY6\NHV 0RVW RI 6LPSVRQjV FODLPV ZHUH SUHVHQWHG LQ D ZD\ WKDW 86   &RHY%HOO)G  WK&LU YLRODWHG0&5 ' &ODLPV,,,$DQG,,,%ZHUHUDLVHG    &RXFK Y sDEH  )G   WK &LU    DQG GHFLGHG DJDLQVW 6LPSVRQ LQ KLV ILUVW PRWLRQ IRU UHOLHI 7KHUHIRUHLIDSHWLWLRQHUSURFHGXUDOO\GHIDXOWVDFODLPLQVWDWH IURP MXGJPHQW DQG ZHUH QRW GLUHFWO\ DSSHDOHG WKHUHE\ FRXUWWKDWSURFHGXUDOGHIDXOWFDUULHVRYHUWRIHGHUDOFRXUWDQG YLRODWLQJ0&5 '  &ODLPV,,,,,&,9%,9&,9( SUHFOXGHV KDEHDV UHYLHZ RI WKDW FODLP LQ IHGHUDO FRXUW  ,Q 9$9%9,DQG9,,ZHUHILUVWUDLVHGLQ6LPSVRQjVVHFRQG RUGHUIRUWKHGRFWULQHWRDSSO\KRZHYHUWKHODVWVWDWHFRXUW PRWLRQIRUUHOLHIIURPMXGJPHQWEXWFRXOGKDYHEHHQUDLVHG UHQGHULQJ D MXGJPHQW LQ WKH FDVH PXVW KDYH EDVHG LWV LQKLVILUVWPRWLRQIRUUHOLHIIURPMXGJPHQWWKHUHE\YLRODWLQJ MXGJPHQWRQWKHSURFHGXUDOGHIDXOW6HH<OVWY1XQQHPDNHU 0&5 '    86       &RXFK  )G DW   $ SURFHGXUDO GHIDXOW DQDO\VLV WKHQ LV WZRIROG   WKH IHGHUDO $ VWDWH SULVRQHU ZKR IDLOV WR FRPSO\ ZLWK D VWDWHj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jV VXEVWDQWLYH DJDLQVW WKH GHIHQGDQW LQ D SULRU DSSHDO RU SURFHHGLQJ XQGHU WKLV VXEFKDSWHU XQOHVV WKH GHIHQGDQW HVWDEOLVKHV FODLPVODFNPHULW WKDW D UHWURDFWLYH FKDQJH LQ WKH ODZ KDV XQGHUPLQHG WKH SULRU GHFLVLRQ 6LPSVRQjVRQO\DUJXPHQWWKDW0&5 ' VKRXOGQRW DSSO\ LV WKDW LVVXHV ,9 9 DQG 9, DUH MXULVGLFWLRQDO DQG  DOOHJHV JURXQGV IRU UHOLHI RWKHU WKDQ WKHUHIRUH PHHW WKH H[FHSWLRQ XQGHU 0&5  '   IRU MXULVGLFWLRQDO GHIHFWV ZKLFK FRXOG KDYH EHHQ UDLVHG RQ MXULVGLFWLRQDOGHIHFWV6LPSVRQFODLPVWKDWMXULVGLFWLRQUHIHUV DSSHDO IURP WKH FRQYLFWLRQ DQG VHQWHQFH RU LQ D SULRU PRWLRQ XQGHU WKLV VXEFKDSWHU XQOHVV WKH GHIHQGDQW WRmZKRKDVDXWKRULW\WRGRZKDWl3HWLWLRQHUjV%ULHIDW  GHPRQVWUDWHV $V D UHVXOW 6LPSVRQ FODLPV  LVVXHV ,9 9 DQG 9, DUH MXULVGLFWLRQDOEHFDXVHWKHSURVHFXWRUDQGMXGJHGLGQRWKDYH D JRRG FDXVH IRU WKH IDLOXUH WR UDLVH VXFK JURXQGV WKH DXWKRULW\ WR DFW DV ZLWQHVVHV  7KLV FODLP ODFNV PHULW RQ DSSHDO RU LQ WKH SULRU PRWLRQ DQG 1HLWKHURIWKHWZRFDVHV6LPSVRQFLWHVGHILQHVmMXULVGLFWLRQDO E DFWXDO SUHMXGLFH IURP WKH DOOHJHG LUUHJXODULW\ GHIHFWl DV WKH WHUP LV XVHG LQ 0&5  '   0RUHRYHU WKDW VXSSRUW WKH FODLP IRU UHOLHI     HYHQ LI WKH 0LFKLJDQ FRXUWV HUURQHRXVO\ GHWHUPLQHG WKH PHDQLQJ RI MXULVGLFWLRQDO GHIHFW WKLV ZRXOG EH DQ HUURU RI