5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  %UXPOH\Y:LQJDUG 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

)LQDOO\DQ\FRQFHUQWKDWZHPLJKWFUHDWHDmEDGSUHFHGHQWl )LOH 1DPH DS

n D GXELRXV FRQVLGHUDWLRQ LQ DQ\ FDVH DV HDFK PXVW EH GHFLGHGRQLWVRZQIDFWVnLVSDUWLFXODUO\XQZDUUDQWHGLQD KDEHDV DFWLRQ ZKHUH RXU GHFLVLRQ WR XSKROG D VWDWH FRXUW 81,7('67$7(6&28572)$33($/6 UXOLQJVD\VQRWKLQJDERXWLWVFRUUHFWQHVVEXWPHDQVRQO\WKDW )257+(6,;7+&,5&8,7 LWLVQRWmXQUHDVRQDEOHl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jVGHPHDQRUDVKHWHVWLILHG$OO 1 DUHDJUHHGWKDWWKHSURFHVVHPSOR\HGE\WKHWULDOFRXUWGLGQRW LQDQ\ZD\GLPLQLVKWKHUHOLDELOLW\RIWKHUHVXOWLQJWHVWLPRQLDO $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW HYLGHQFHLQWURGXFHGDWWULDODQGWKHUHLVQRLQGLFDWLRQWKDW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ OLYHWHVWLPRQ\ZRXOGKDYHEHHQDQ\EHWWHURUHYHQGLIIHUHQW 1R n'DQ$3ROVWHU'LVWULFWsXGJH LQWKLVUHVSHFW<HWGHVSLWHDOOWKLVWKHPDMRULW\ILQGVWKDW %UXPOH\jV FRQVWLWXWLRQDO JXDUDQWHH RI FRQIURQWDWLRQ ZDV $UJXHG $XJXVW DEULGJHG DQG WKDW WKH 2KLR FRXUWV DFWHG ERWK FRQWUDU\ WR 6XSUHPH &RXUW SUHFHGHQW DQG XQUHDVRQDEO\ LQ UXOLQJ 'HFLGHGDQG)LOHG 2FWREHU RWKHUZLVH,GLVDJUHHRQDOOVFRUHVDQGUHVSHFWIXOO\GLVVHQW %HIRUH 0225(DQG&2/(&LUFXLWsXGJHV 526(1 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('   6WXDUW : +DUULV 2)),&( 2) 7+( $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQW  sRKQ )HQORQ

7KH +RQRUDEOH *HUDOG ( 5RVHQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& GLVFXVVHG HDUOLHU , ILUPO\ EHOLHYH XSRQ UHYLHZLQJ WKH '()(1'(5&200,66,21&ROXPEXV2KLRIRU$SSHOOHH UHOHYDQW 6XSUHPH &RXUW SUHFHGHQWV WKDW WKH XQFKDOOHQJHG 21 %5,()   0DUN sRVHSK =HPED 2)),&( 2) 7+( UHOLDELOLW\ RI .LUNOLQjV YLGHRWDSHG WHVWLPRQ\ LQ WKLV FDVH $77251(< *(1(5$/ 2) 2+,2 &255(&7,216 VKRXOGPLWLJDWHLQZKROHRUDWOHDVWLQSDUWWKH6WDWHjVGXW\ /,7,*$7,216(&7,21&OHYHODQG2KLRIRU$SSHOODQW WRPDNHJRRGIDLWKHIIRUWVWRDFKLHYHZKDWZRXOGHVVHQWLDOO\ sRKQ )HQORQ 38%/,& '()(1'(5j6 2)),&( 2+,2 EHDXVHOHVVREMHFW QDPHO\WKHSURGXFWLRQRI.LUNOLQDWWULDO 38%/,&'()(1'(5&200,66,21&ROXPEXV2KLRIRU ZKHUHKHZRXOGVLPSO\UHSHDWKLVYLGHRWDSHGWHVWLPRQ\RID $SSHOOHH IHZZHHNVHDUOLHU 0225(sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK )LQDOO\,IHHO,PXVWUHVSRQGWRWKHPDMRULW\jVmVOLSSHU\ &2/( s MRLQHG  526(1 ' s SS   GHOLYHUHG D VORSHlFRQWHQWLRQnDVFDUHFURZRIWHQXVHGWRVKRUHXSDQ VHSDUDWHGLVVHQWLQJRSLQLRQ XQWHQDEOHOHJDOSRVLWLRQnWKDWWKHGHQLDORIKDEHDVUHOLHIWR %UXPOH\ LQ WKLV FDVH mZRXOG LQ HIIHFW SHUPLW WULDO E\ BBBBBBBBBBBBBBBBB GHSRVLWLRQ WKH HYLO WKDW WKH IUDPHUV RI WKH &RQIURQWDWLRQ &ODXVH VRXJKW WR SURKLELWl  0DMRULW\ 2S DW    7KLV 23,1,21 FRQFHUQLVPLVSODFHGLQDQXPEHURIUHVSHFWV)LUVWDV,KDYH BBBBBBBBBBBBBBBBB HQGHDYRUHGWRVKRZLQP\VXUYH\RIWKHKLVWRU\DQGSXUSRVH RI WKH &RQIURQWDWLRQ &ODXVH WKLV FDVH n OLNH &UDLJ RQO\ .$5(11(/6210225(&LUFXLWsXGJH,QWKLVKDEHDV PRUH VR JLYHQ WKH DFWXDO IDFHWRIDFH FRQIURQWDWLRQ KHUH FDVH:DUGHQ&XUWLV:LQJDUG KHUHLQDIWHUmWKH6WDWHl DSSHDOV EHWZHHQDFFXVHGDQGDFFXVHUnLQYROYHVDSURFHGXUHWKDWLV DQRUGHUGHQ\LQJSRVWMXGJPHQWUHOLHIIURPWKHGLVWULFWFRXUWjV mD IDU FU\ IURP WKH XQGLVSXWHG SURKLELWLRQ RI WKH RUGHU JUDQWLQJ KDEHDV SHWLWLRQHU :LOOLH %UXPOH\ UHOLHI DQG &RQIURQWDWLRQ &ODXVH   WULDO E\ H[ SDUWH DIILGDYLW RU GLUHFWLQJWKH6WDWHWRUHWU\%UXPOH\IRUFRPSOLFLW\WRFRPPLW LQTXLVLWLRQl&UDLJ 86DW6&WDW DJJUDYDWHGPXUGHU:H$)),50WKHGLVWULFWFRXUWjVGHQLDO RIWKH6WDWHjVSRVWMXGJPHQWPRWLRQ:HKROGWKDWWKHGLVWULFW 1H[WWKHUXOLQJ,DGYRFDWHKHUHZRXOGLQQRZD\UHZDUGWKH FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ GHQ\LQJ WKH 6WDWHjV mOD]\l SURVHFXWRU ZKR DV LQ %DUEHU PDNHV QR HIIRUW WR PRWLRQIRUSRVWMXGJPHQWUHOLHIEHFDXVHWKHGLVWULFWFRXUWKDG DFKLHYH WKH FRQIURQWDWLRQ UHTXLUHG XQGHU WKH 6L[WK DOUHDG\FRQVLGHUHGDQGUHMHFWHGWKHDUJXPHQWVUDLVHGLQLW,Q $PHQGPHQW5DWKHUWKHUHVXOW,SURSRVHQHFHVVDULO\ZRXOG DGGLWLRQZHKROGWKDWWKHGLVWULFWFRXUWGLGQRWHUULQJUDQWLQJ EHOLPLWHGWRWKHIDFWVSUHVHQWHGZKHUH L WKH6WDWHDFWXDOO\ %UXPOH\ KDEHDV UHOLHI EHFDXVH WKH VWDWH WULDO FRXUWjV SURFXUHGWKHDFFXVHUjVSUHVHQFHEHIRUHWKHDFFXVHGDQGDIIRUG DGPLVVLRQ RI YLGHRWDSHG GHSRVLWLRQ WHVWLPRQ\ ZLWKRXW D D IXOO DQG IDLU RSSRUWXQLW\ IRU FURVVH[DPLQDWLRQ  LL  WKLV VKRZLQJ RI WKH ZLWQHVVjV XQDYDLODELOLW\ ZDV FRQWUDU\ WR FRQIURQWDWLRQ ZDV YLGHRWDSHG IRU YLHZLQJ E\ WKH MXU\  DQG DQGRU DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ HVWDEOLVKHG LLL WKHUHKDVEHHQQRVKRZLQJRIDQ\PDWHULDOGHYHORSPHQWV 6XSUHPH&RXUWSUHFHGHQW EHWZHHQWKHWLPHRIWKHDFFXVHUjVWHVWLPRQ\DQGWKHWLPHRI WULDO ,%$&.*5281' ,Q    :LOOLH %UXPOH\ ZDV FRQYLFWHG E\ D 3RUWDJH &RXQW\ 2KLR MXU\ RI FRPSOLFLW\ WR FRPPLW DJJUDYDWHG PXUGHUZLWKWZRGHDWKSHQDOW\VSHFLILFDWLRQVDQGNLGQDSLQJ mUHDVRQDEOHl RU mXQUHDVRQDEOHl DSSOLFDWLRQ RI WKH ODZ DV DQQRXQFHG E\ LQFRQQHFWLRQZLWKWKH DEGXFWLRQDQGPXUGHURI%HFN\ WKH 6XSUHPH &RXUW  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

DQGLWVUHVROXWLRQSUHVHQWVDPL[HGTXHVWLRQRIODZDQGIDFW .QDSS%UXPOH\ZDVVHQWHQFHGWROLIHLQSULVRQZLWKSDUROH 7KLV&LUFXLWYHU\UHFHQWO\FRQILUPHGWKDWm>L@QDKDEHDVFDVH HOLJLELOLW\ LQ WKLUW\ \HDUV RQ WKH FRPSOLFLW\ WR FRPPLW ZHDSSO\WKHµXQUHDVRQDEOHDSSOLFDWLRQjSURQJRI† G  DJJUDYDWHGPXUGHUFRXQWDQGWRDPD[LPXPRIWZHQW\ILYH WRDPL[HGTXHVWLRQRIODZDQGIDFWl0LWFKHOOY0DVRQ \HDUV RQ WKH NLGQDSLQJ FRXQW  WKH VHQWHQFHV ZHUH WR UXQ )G WK&LU 7KLVUHIOHFWVRXUUHFRJQLWLRQ FRQVHFXWLYHO\ WKDWDVWDWHFRXUWjVUHVROXWLRQRIDIDFWODGHQLVVXHFDQUDUHO\ EHmFRQWUDU\WRl6XSUHPH&RXUWSUHFHGHQWDQGRQO\ZKHQWKH $IWHUH[KDXVWLQJKLVVWDWHDSSHDOV%UXPOH\ILOHGDIHGHUDO VWDWH FRXUW FRQIURQWV D VHW RI IDFWV WKDW DUH mPDWHULDOO\ DSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVSXUVXDQWWR86& LQGLVWLQJXLVKDEOHlIURPWKHIDFWVXQGHUO\LQJD6XSUHPH&RXUW †  RQ 2FWREHU     7KH KDEHDV SHWLWLRQ ZDV UXOLQJ6HH:LOOLDPV  6 &WDW 7KH'LVWULFW WUDQVIHUUHGWR0DJLVWUDWHsXGJH9HFFKLDUHOOLIRUDUHSRUWDQG &RXUWUHDOL]HGDQG%UXPOH\jVRZQFRXQVHOFRQFHGHGDWRUDO UHFRPPHQGDWLRQ%UXPOH\UDLVHGRQO\RQHJURXQGIRUUHOLHI DUJXPHQWWKDWWKLVLVQRWWKHFDVHKHUH LQKLVIHGHUDOKDEHDVSHWLWLRQD&RQIURQWDWLRQ&ODXVHFODLP 7KLVFODLPZDVGHVFULEHGLQWKHIROORZLQJZD\LQKLVKDEHDV , DOVR EHOLHYH WKDW WKH PDMRULW\ HUUV LQ LWV VWULFW SHWLWLRQ   m7ULDO FRXUW SHUPLWWHG 6WDWH WR HQWHU YLGHRWDSH FRPSDUWPHQWDOL]DWLRQRIWKHmXQDYDLODELOLW\lDQGmUHOLDELOLW\l GHSRVLWLRQ RI 7RQ\ .LUNOLQ DW WKH WLPH LQFDUFHUDWHG LQ DQ SURQJVRIWKHWZRSDUWWHVWVHWIRUWKLQ5REHUWV7KHPDMRULW\ $UL]RQD VWDWH FRUUHFWLRQDO IDFLOLW\ LQ OLHX RI OLYHLQFRXUW VXJJHVWVWKDWLWLVLPSURSHUHYHQWRFRQVLGHUWKHUHOLDELOLW\RI WHVWLPRQ\7ULDOFRXUWIRXQG.LUNOLQµXQDYDLODEOHjDQGWKXV .LUNOLQjVYLGHRWDSHGWHVWLPRQ\XQWLOLWLVILUVWHVWDEOLVKHGWKDW WHVWLPRQ\DGPLVVLEOHlsRLQW$SSHQGL[ ms$l DW WKLVZLWQHVVZDVFRQVWLWXWLRQDOO\mXQDYDLODEOHlDW%UXPOH\jV WULDO  5REHUWV LWVHOI KRZHYHU VHHPV WR UHIXWH WKLV 7RQ\.LUNOLQ m7RQ\l ZDVWKHEURWKHURI'HOPDU.LUNOLQ SURSRVLWLRQDVWKH&RXUW L H[SUHVVO\UHFRJQL]HGWKDWWKHUH m'HOPDUl WKHLQGLYLGXDOFKDUJHGZLWKWKHPXUGHURI.QDSS DUHFLUFXPVWDQFHVLQZKLFKmWKHXWLOLW\RIWULDOFRQIURQWDWLRQ 7RQ\ZDVDSDVVHQJHULQWKHFDU'HOPDUZDVGULYLQJRQWKH >LV@ VR UHPRWHl WKDW WKH ZLWQHVVjV DYDLODELOLW\ QHHG QRW EH GD\RIWKHPXUGHUDVZHUH%UXPOH\.HYLQ'DYLV m'DYLVl GHWHUPLQHG86DWQ6&WDWQDQG LL DKDOIEURWKHURIWKH.LUNOLQV DQG0DUW\0DUVKDOO7RQ\ SURFHHGHGLQLWVDQDO\VLVRIWKHIDFWVEHIRUHLWWRILUVWDGGUHVV ZLWQHVVHGWKHHYHQWVOHDGLQJXSWRWKHVKRRWLQJRI.QDSSE\ WKH LVVXH RI UHOLDELOLW\ EHIRUH WXUQLQJ WR WKH TXHVWLRQ RI 'HOPDULQFOXGLQJWKHVKRRWLQJLWVHOI$WWKHWLPHWKH6WDWH XQDYDLODELOLW\ VHH  86 DW   6 &W DW  ZDVSUHSDULQJWRWU\'HOPDUDQG%UXPOH\VHSDUDWHO\LQ   2WKHU FRXUWV DFFRUGLQJO\ KDYH UHFRJQL]HG WKDW m>W@KH 7RQ\ZDVLQFDUFHUDWHGLQDQ$UL]RQDVWDWHSULVRQKDYLQJEHHQ TXHVWLRQRIUHDVRQDEOHPHDQV>WRVHFXUHDZLWQHVVjVSUHVHQFH FRQYLFWHGRIFRFDLQHSRVVHVVLRQLQWKHLQWHUYHQLQJ\HDUV7KH DW WULDO@ FDQQRW EH GLYRUFHG IURP WKH VLJQLILFDQFH RI WKH 6WDWHWKXVSURYLGHGIRU7RQ\WREHWUDQVSRUWHGIURP$UL]RQD ZLWQHVVWRWKHSURFHHGLQJDWKDQGWKHUHOLDELOLW\RIWKHIRUPHU WR2KLRWRWHVWLI\DJDLQVWKLVEURWKHU'HOPDU'HOPDUjVWULDO WHVWLPRQ\ DQG ZKHWKHU WKHUH LV UHDVRQ WR EHOLHYH WKDW WKH KDGEHHQVFKHGXOHGEHIRUH%UXPOH\jVEXW'HOPDUSOHDGHG RSSRVLQJSDUW\jVSULRUFURVVH[DPZDVLQDGHTXDWHl8QLWHG JXLOW\VKRUWO\EHIRUHKLVWULDO 6WDWHVYsRKQVRQ)G    WK&LU  $V

 , UHFRJQL]H WKDW WKH GLVSRVLWLRQ RI %UXPOH\jV KDEHDV SHWLWLRQ LV WR EH GHWHUPLQHG RQO\ E\ UHIHUHQFH WR 6XSUHPH &RXUW SUHFHGHQWV DQG QRW WKH GHFLVLRQV RI WKH ORZHU FRXUWV 6HH  86& †  G  VHH DOVR :LOOLDPV  6 &W DW  <HW D IHGHUDO DSSHOODWH FRXUW UXOLQJ LV DW OHDVW SUREDWLYH RQ WKH TXHVWLRQ ZKHWKHU D VWDWH FRXUWjV VLPLODU UXOLQJ LV D  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

7KH SURVHFXWLRQ WKHQ PRYHG WKH WULDO FRXUW SXUVXDQW WR WUDQVSRUWDWLRQRIDSULVRQHULVDQLQKHUHQWO\ULVN\HQGHDYRU 2KLR&ULP5DQG2KLR5HY&RGH† WRDOORZ 7KXV,EHOLHYHWKDWWKH6WDWHjVVXFFHVVLQEULQJLQJ.LUNOLQ WKHPWRGHSRVH7RQ\RQYLGHRWDSH ZLWK%UXPOH\DQGKLV IURP$UL]RQDWR2KLRDQGLWVVXEVHTXHQWVWHSVWRHQVXUHWKDW FRXQVHO SUHVHQW 7KH SURVHFXWLRQ RIIHUHG WKUHH UHDVRQV IRU %UXPOH\KDGWKHRSSRUWXQLW\WRFRQIURQWWKLVZLWQHVVDJDLQVW YLGHRWDSLQJ 7RQ\jV WHVWLPRQ\ DW WKDW WLPH  )LUVW WKH KLP DQG WKDW WKLV FRQIURQWDWLRQ ZRXOG EH SUHVHUYHG RQ SURVHFXWLRQ SRLQWHG WR WKH GLIILFXOW\ RI WKH SURFHGXUHV YLGHRWDSH VKRXOG FRXQW WRZDUG DQG QRW DJDLQVW WKH LQYROYHGZKLFKZRXOGUHTXLUH DQRWKHU$UL]RQDVWDWHFRXUW SURVHFXWLRQjV GXW\ WR PDNH D JRRGIDLWK HIIRUW WR VHFXUH D RUGHU EHIRUH 7RQ\ FRXOG EH WUDQVSRUWHG D VHFRQG WLPH ZLWQHVVj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mXQDYDLODEOHl DW WULDO PRWLRQ RYHU WKH YLJRURXV REMHFWLRQV RI %UXPOH\jV GHIHQVH %DUEHU Y 3DJH VXSUD D FDVH WKH PDMRULW\ ILQGV mYHU\ FRXQVHO7KHSURVHFXWLRQGHSRVHG7RQ\RQ YLGHRWDSHRQ VLPLODUlWRWKLVRQH 0DMRULW\2SDW LQIDFWUHVWHGXSRQ $SULO   DILQGLQJWKDWmWKH6WDWHPDGHDEVROXWHO\QRHIIRUWWRREWDLQ WKHSUHVHQFHRI>WKHDFFXVLQJZLWQHVV@DWWULDORWKHUWKDQWR 7RQ\ WHVWLILHG WKDW KH KDG EHHQ D SDVVHQJHU LQ 'HOPDUjV DVFHUWDLQWKDWKHZDVLQDIHGHUDOSULVRQRXWVLGH2NODKRPDl *UDQG3UL[ZKHQ'HOPDUSLFNHGXS%HFN\.QDSSZKRZDV WKHSODFHRIWULDO%DUEHU 86DW6&WDW KLWFKKLNLQJDWWKHWLPH'HOPDUHYHQWXDOO\GURYHWKH*UDQG $VDUHVXOWWKHGHIHQGDQWLQ%DUEHUQHYHUFURVVH[DPLQHG WKLVZLWQHVV$VGLVFXVVHGWKH6WDWHRI2KLRGLGDJRRGGHDO PRUH LQ WKLV FDVH WKHUHE\ HQVXULQJ %UXPOH\jV ULJKW RI  FRQIURQWDWLRQ7KH6XSUHPH&RXUWjVRWKHUmXQDYDLODELOLW\l 2KLR &ULP 5  $ VWDWHV WKDW D GHSRVLWLRQ PD\ EH WDNHQ m>L@I LW DSSHDUV SUREDEOH WKDW D SURVSHFWLYH ZLWQHVV ZLOO EH XQDEOH WR DWWHQG RU FDVHVDUHHTXDOO\GLVWLQJXLVKDEOHDVWKH\LQYROYHZLWQHVVHV ZLOO EH SUHYHQWHG IURP DWWHQGLQJ D WULDO RU KHDULQJ DQG LI LW IXUWKHU ZKRKDGGLHG0DWWR[86DW6&WDWRQH DSSHDUV WKDW KLV WHVWLPRQ\ LV PDWHULDO DQG WKDW LW LV QHFHVVDU\ WR WDNH KLV ZKRZDVRXWRIWKHFRXQWU\VRWKDWWKH6WDWHZDVmSRZHUOHVV GHSRVLWLRQ    WR SUHYHQW D IDLOXUH RI MXVWLFHl 2KLR &ULP 5  ) VSHFLILHV ZKHQ D GHSRVLWLRQ PD\ EH XVHG DW WULDO m$W WKH WULDO    D SDUW WRFRPSHOKLVDWWHQGDQFHlDWWULDO0DQFXVL86DW RU DOO RI D GHSRVLWLRQ VR IDU DV RWKHUZLVH DGPLVVLEOH XQGHU WKH UXOHV RI 6&WDWDQGDZLWQHVVZKRVHORFDWLRQZDVXQNQRZQ HYLGHQFH PD\ EH XVHG LI LW DSSHDUV    WKDW WKH ZLWQHVV LV RXW RI WKH VWDWH HYHQWRKHU SDUHQWV5REHUWV86DW6&WDW    l *LYHQWKHVHSUHFHGHQWVO\LQJDWWZRHQGVRIDEURDG  VSHFWUXPRImDYDLODELOLW\l,ILQGQRmFOHDUO\HVWDEOLVKHGlODZ 2KLR 5HY &RGH †   VWDWHV LQ UHOHYDQW SDUW m$W DQ\ WLPH DIWHU WKDWVTXDUHO\JRYHUQVWKHIDUGLIIHUHQWVHWRIFLUFXPVWDQFHVLQ DQ LVVXH RI IDFW LV MRLQHG XSRQ DQ LQGLFWPHQW    WKH SURVHFXWLRQ RU WKH WKLV FDVH VXFK WKDW WKH 2KLR FRXUWV UHDVRQDEO\ FRXOG KDYH GHIHQGDQW PD\ DSSO\ LQ ZULWLQJ WR WKH FRXUW    IRU D FRPPLVVLRQ WR WDNH WKH GHSRVLWLRQV RI DQ\ ZLWQHVVl UHDFKHGRQO\RQHFRQFOXVLRQ  6WLOOOHVVFDQ,IDWKRPKRZWKHWULDOFRXUWjVUXOLQJRQWKLV 7KH GLVVHQW VXJJHVWV WKDW ZH mREVFXUHl mWKH WULDOOLNH VHWWLQJl LQ ZKLFK WKH GHSRVLWLRQ ZDV WDNHQ E\ mFRQVLVWHQWO\ UHIHU>ULQJ@ WR 7RQ\ TXHVWLRQRIXQDYDLODELOLW\FRXOGEHGHHPHGmFRQWUDU\WR .LUNOLQjV µGHSRVLWLRQ WHVWLPRQ\jl 'LVVHQW SRVW DW   7KH WHUP FOHDUO\HVWDEOLVKHG)HGHUDOODZlDVWKHPDMRULW\FRQFOXGHV mGHSRVLWLRQ WHVWLPRQ\l LV DFFXUDWH KRZHYHU DV WKLV LV WKH ODQJXDJH XVHG 7KLVLVVXHDVQRWHGHDUOLHUWXUQVRQDIDFWLQWHQVLYHLQTXLU\ E\ WKH 2KLR 5HYLVHG &RGH DQG WKH 2KLR 5XOHV FLWHG VXSUD  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

6WDWHGLGQRWVLPSO\VDFULILFH%UXPOH\jVULJKWRIFRQIURQWDWLRQ 3UL[ WR WKH HQG RI D GHDGHQG URDG ZKHUH HYHU\RQH EXW WR LWV RZQ mDGPLQLVWUDWLYH FRQYHQLHQFH DQG EXGJHWDU\ %UXPOH\DQG.QDSSH[LWHGWKHFDU%UXPOH\DQG.QDSSZHUH FRQFHUQVl 0DMRULW\2SDW  7RWKHFRQWUDU\LWZDVRQO\ DORQH LQ WKH EDFNVHDW RI WKH *UDQG 3UL[ IRU DURXQG WZHQW\ WKURXJKWKH6WDWHjVXVHRILWVDGPLQLVWUDWLYHSURFHVVHVEXGJHW PLQXWHV DFFRUGLQJ WR 7RQ\  DIWHU %UXPOH\ H[LWHG 'HOPDU DQGSHUVRQQHOWKDW%UXPOH\KDGWKHRSSRUWXQLW\WRFRQIURQW HQWHUHGWKH*UDQG3UL[ZKHUHKHDQG.QDSSZHUHDORQHIRU DQGFURVVH[DPLQHKLVDFFXVHU7KHQWKURXJKQRIDXOWRIWKH DURXQG WZHQW\ PLQXWHV  $IWHU WKDW LQWHUYDO 'HOPDU DQG 6WDWHWKLVZLWQHVVZDVUHWXUQHGWR$UL]RQDEHIRUH%UXPOH\jV .QDSSH[LWHGWKH*UDQG3UL[.QDSSZDONHGWREHKLQGWKH WULDOKDGFRPPHQFHG:KDW%UXPOH\VRXJKWDQGZKDWWKH FDUnZKHUH%UXPOH\7RQ\DQGWKHRWKHUPHQZHUHVWDQGLQJ 6WDWHUHVLVWHGDVZDVWHIXORIOLPLWHGUHVRXUFHVZDVDVHFRQG n DQG VTXDWWHG GRZQ DV WKRXJK WR XULQDWH  $W WKDW WLPH RSSRUWXQLW\WRFRQIURQWWKLVZLWQHVVGHVSLWHWKHDEVHQFHRI 7RQ\WHVWLILHGWKDWRQHRIWKHPHQVDLGWKDW.QDSSKDGVHHQ DQ\ VKRZLQJ WKDW WKH ILUVW RSSRUWXQLW\ ZDV FRQVWLWXWLRQDOO\ mWRRPXFKlUHIHUULQJWRWKH*UDQG3UL[jVOLFHQVHSODWHVs$ GHILFLHQWRUWKDWWKHVHFRQGFRQIURQWDWLRQZRXOGGLIIHULQDQ\ DW$FFRUGLQJWR7RQ\'HOPDUVDLGWKDW.QDSSKDGWRGLH ZD\IURPWKHILUVW8QGHUWKHVHFLUFXPVWDQFHVWKH6WDWHjV EHFDXVHVKHKDGVHHQWKH*UDQG3UL[jVOLFHQVHSODWHV'HOPDU LQWHUHVW ZKLOH SHUKDSV QRW FRPSDUDEOH WR WKH LQWHUHVW DQG%UXPOH\GLVFXVVHGZKDWZDVJRLQJWRKDSSHQWR.QDSS DGYDQFHG LQ &UDLJ ZDV VXIILFLHQW WR RIIVHW DQ\ PLQLPDO DQGWKHQWKHPHQJRWEDFNLQWRWKH*UDQG3UL[.QDSSGLGQRW LPSDFWXSRQ%UXPOH\jVULJKWRIFRQIURQWDWLRQ UHHQWHUWKHYHKLFOH )RUWKHVDPHUHDVRQVHYHQLI,ZHUHWRDJUHHWKDW5REHUWVj $W WKDW WLPH DFFRUGLQJ WR 7RQ\jV GHSRVLWLRQ WHVWLPRQ\ OLPLWHGUHTXLUHPHQWRIXQDYDLODELOLW\VKRXOGDSSO\XQGHUWKH %UXPOH\SURGXFHGDUHYROYHUDQGSRLQWHGLWRXWWKHZLQGRZ FLUFXPVWDQFHVRIWKLVFDVH,ZRXOGKROGWKDWWKLVUHTXLUHPHQW RIWKH*UDQG3UL[DW.QDSS$IWHUKROGLQJWKHUHYROYHURQ ZDVVDWLVILHGDW%UXPOH\jVWULDOnRUDWOHDVWWKDWWKH2KLR .QDSS IRU D IHZ VHFRQGV %UXPOH\ KDQGHG WKH UHYROYHU WR FRXUWVGLGQRWDFWXQUHDVRQDEO\LQVRFRQFOXGLQJ$VQRWHG 'HOPDU DQG WROG KLP WR NLOO .QDSS  $FFRUGLQJ WR 7RQ\ 5REHUWVUHTXLUHVRQO\DJRRGIDLWKHIIRUWWRREWDLQDZLWQHVVjV %UXPOH\ VDLG m<RX ZDVWH KHUl  s$ DW   'HOPDU WKHQ SUHVHQFHDWWULDOPHDVXUHGE\DVWDQGDUGRIUHDVRQDEOHQHVV H[LWHGWKH*UDQG3UL[ZDONHGRYHUWR.QDSSSRLQWHGWKHJXQ 6HH5REHUWV86DW6&WDW,QILQGLQJ DW WKH VLGH RI KHU KHDG DQG ILUHG WKUHH VKRWV DFFRUGLQJ WR WKDW WKH SURVHFXWLRQ PDGH QR HIIRUW DW DOO LQ WKLV FDVH WKH 7RQ\7RQ\WHVWLILHGWKDWKHZLWQHVVHGWKHILUVWVKRW KHDOVR PDMRULW\LQHIIHFWSHQDOL]HVWKH6WDWHIRULWVVXFFHVVIXOHIIRUW WHVWLILHG WKDW EHIRUH WKH VKRRWLQJ EHJDQ 'DYLV H[LWHG WKH WRVHFXUH.LUNOLQjVSUHVHQFHLQ2KLRIRUWKHWULDORI%UXPOH\jV *UDQG3UL[DQGVWDUWHGUXQQLQJDZD\IURPWKHVFHQH'HOPDU FRGHIHQGDQW$IWHUDOOWKHPDMRULW\UHDVRQVLIWKH6WDWHZDV DQG%UXPOH\WKHQORDGHG.QDSSjVERG\LQWRWKHWUXQNRIWKH DEOH WR EULQJ .LUNOLQ IURP $UL]RQD WR 2KLR IRU RQH WULDO *UDQG3UL[7KHPHQGURYHWRDVHFOXGHGVSRWZKHUH'HOPDU VXUHO\LWFDQGRVRDJDLQIRUDVXEVHTXHQWWULDO,WVHHPVWR DQG%UXPOH\FDUULHGWKHERG\LQWRWKHZRRGV .QDSSjVERG\ PHKRZHYHUWKDWWKLVDQDO\VLVXQGXO\GLVUHJDUGVWKHH[SHQVH KDGQRWEHHQUHFRYHUHGDWWKHWLPHRI%UXPOH\jVWULDOGHVSLWH DGPLQLVWUDWLYHEXUGHQDQGRWKHUIDFWRUVLQYROYHGLQEULQJLQJ VHDUFKHVLQWKHDUHD7RQ\GHVFULEHG LWKDVVXEVHTXHQWO\EHHQ WKLVZLWQHVVWR2KLRWKHILUVWWLPH,QIDFWWKHH[SHQVHZDV UHFRYHUHG 'XULQJWKHGHSRVLWLRQ%UXPOH\jVFRXQVHOPDGH VLJQLILFDQWnSDUWLFXODUO\LQOLJKWRIZKDWZHZHUHWROGDWRUDO REMHFWLRQVIRUWKHUHFRUGDQGFURVVH[DPLQHG7RQ\ DUJXPHQWWKDWWKHFRXQW\LQZKLFK%UXPOH\ZDVSURVHFXWHG ZDV VPDOO DQG KDG H[WUHPHO\ OLPLWHG UHVRXUFHV n DQG WKH $WWULDOWKHSURVHFXWLRQPRYHGWRSUHVHQWWKHYLGHRWDSHG GHSRVLWLRQSXUVXDQWWR2KLR&ULP5 ) EHFDXVH7RQ\ ZDVRXWRIWKHVWDWH,QWKHPHDQWLPHWKHGHSRVLWLRQKDGEHHQ mFOHDQHG XSl LH DOO WKH REMHFWLRQV DQG UXOLQJV KDG EHHQ FRQVWLWXWLRQDO WH[W LWVHOI GHPDQGV LW  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

UHPRYHG7KHSURVHFXWLRQDWWKDWWLPHVWDWHGIRUWKHUHFRUG 0RUHJHQHUDOO\ZHKDYHREVHUYHGWKDWmWKHµJRRGIDLWKjDQG WKDW LW KDG FRQWDFWHG WKH $UL]RQD DXWKRULWLHV WKH SUHYLRXV µUHDVRQDEOHQHVVjVWDQGDUGVDUWLFXODWHGLQ5REHUWVDUHQRW ZHHNWKDWWKRVHDXWKRULWLHVKDGFRQILUPHGWKDW7RQ\ZDVVWLOO VXEMHFWWRH[DFWGHILQLWLRQl8QLWHG6WDWHVY4XLQQ )G LQFDUFHUDWHG LQ $UL]RQD DQG WKDW KH ZRXOG UHPDLQ  WK&LU  VHHDOVR6WRQHU )GDW LQFDUFHUDWHGIRUWKHQHDUIXWXUH7KHSURVHFXWLRQUHLWHUDWHG QRWLQJWKHmFDVHVSHFLILFlILQGLQJRIQHFHVVLW\WKDWPXVWEH WKDW mWKH 6WDWH KDG JRQH WR JUHDW WURXEOH DQG H[SHQVH WR PDGHmLQRUGHUWRGLVSHQVHZLWKFRQIURQWDWLRQLQRSHQFRXUWl REWDLQl 7RQ\jV GHSRVLWLRQ WHVWLPRQ\ ZKHQ KH KDG EHHQ 7DWHY)OHQR\)G :/DW  WK&LU EURXJKW WR 2KLR IRU KLV EURWKHUjV WULDO DQG WKDW LW ZDV sDQ   m>7@KHLVVXHRIUHDVRQDEOHQHVVLVHVVHQWLDOO\ FRPSO\LQJZLWKWKHUHOHYDQW2KLRVWDWXWHVs$DW7KH DIDFWXDOTXHVWLRQl 8QLWHG6WDWHVY0F.HHYH)G SURVHFXWLRQDOVRSRLQWHGWRWKHGHIHQVHjVFURVVH[DPLQDWLRQ  VW &LU    REVHUYLQJ WKDW mILOWHULQJ FRQVWLWXWLRQDO RI WKH GHSRQHQW DV VXSSRUW IRU WKH DGPLVVLELOLW\ RI WKH FRQFHUQV>XQGHUWKH&RQIURQWDWLRQ&ODXVH@WKURXJKDVHLQH YLGHRWDSHGGHSRVLWLRQ ZRYHQRISUDFWLFDOQHFHVVLW\LVDWULFN\EXVLQHVVDQGGLIIHUHQW VLWXDWLRQV OLNHO\ ZLOO \LHOG GLIIHUHQW DFFRPPRGDWLRQVl 7KH WULDO FRXUW JUDQWHG WKH SURVHFXWLRQjV PRWLRQ RQ WKH &KULVWLDQ)GDW mµ*RRGIDLWKjDQGµUHDVRQDEOHQHVVj EDVLVRI2KLR&ULP5DQG2KLR5HY&RGH†  DUHWHUPVWKDWGHPDQGIDFWLQWHQVLYHFDVHE\FDVHDQDO\VLV 'HIHQVH FRXQVHO REMHFWHG SUHVHUYLQJ LWV DUJXPHQWV IRU QRWULJLGUXOHVl  DSSHDO7KHWULDOMXGJHRYHUUXOHGWKHVHGHIHQVHREMHFWLRQV 7KH MXU\ WKHQ YLHZHG WKH FOHDQHGXS YHUVLRQ RI WKH 7KXV LQ D SURSHU FDVH , VHH QR LPSHGLPHQW WR MXGLFLDO YLGHRWDSHG GHSRVLWLRQ ZKLFK LQFOXGHG WKH WHVWLPRQ\ FRQVLGHUDWLRQRID6WDWHjVLQWHUHVW LQFRQVHUYLQJLWVOLPLWHG VXPPDUL]HGVXSUD UHVRXUFHV0RUHRYHU,EHOLHYHWKLVLVMXVWVXFKDFDVH7KH 7KHWULDOWHVWLPRQ\RIWZRRWKHUSURVHFXWLRQZLWQHVVHVLV LPSRUWDQW WR WKLV DSSHDO  )LUVW DQRWKHU SDVVHQJHU LQ WKH *UDQG 3UL[ 'DYLV WHVWLILHG WR ZKDW KH VDZ WKH GD\ RI WKH    WK &LU    ,Q WKDW FDVH WKH GHIHQGDQW UHTXHVWHG WKDW

PXUGHU  EXW EHFDXVH 'DYLV H[LWHG WKH *UDQG 3UL[ DQG UDQ VXESRHQDV EH LVVXHG XQGHU 5XOH  E mIRU VHYHQ ZLWQHVVHV DOO RI ZKRP ZHUH DW WKH WLPH LQFDUFHUDWHG LQ WKH )HGHUDO 3HQLWHQWLDU\ LQ $WODQWD DZD\EHIRUHWKHVKRRWLQJKHZDVQRWDQH\HZLWQHVVWRWKH *HRUJLDl  )G DW  :H DIILUPHG WKH 'LVWULFW &RXUWjV GHQLDO RI HYHQWV WKDW RFFXUUHG DIWHU %UXPOH\ SURGXFHG WKH UHYROYHU WKLV UHTXHVW VWDWLQJ WKDW m>W@KH &RXUW PD\ FRQVLGHU WKH H[SHQVH WR WKH

'DYLV GLG KHDU VKRWV ILUHG KRZHYHU  0RUHRYHU WKH JRYHUQPHQW DQG PRUH SDUWLFXODUO\ WKH GDQJHU WR WKH SXEOLF LQKHUHQW LQ

SURVHFXWLRQDOVRSURGXFHGZLWQHVV'RQDOG6DQGHUVZKRKDG WUDQVSRUWLQJ LQPDWHV RYHU WKHVH GLVWDQFHVl  )G DW 

EHHQ LQ SULVRQ ZLWK ERWK 'HOPDU DQG %UXPOH\  6DQGHUV  WHVWLILHGWRLQFULPLQDWLQJVWDWHPHQWV%UXPOH\PDGHZKLOHLQ $ FRQWUDU\ FRQFOXVLRQ n LH WKDW D ZLWQHVV PXVW EH SURGXFHG OLYH

SULVRQ DW WULDO LI DW DOO SRVVLEOH QR PDWWHU WKH H[SHQVH RU GHPDQG XSRQ D 6WDWHjV UHVRXUFHV n ZRXOG QRW RQO\ GLVUHJDUG WKH 6XSUHPH &RXUWjV UHSHDWHG

$IWHUKLVFRQYLFWLRQ%UXPOH\SXUVXHGKLVDSSHDOVLQVWDWH UHIHUHQFHV LQ LWV GHFLVLRQV WR QRWLRQV RI mJRRG IDLWKl DQG mUHDVRQDEOHQHVVl EXW FRXOG , IHDU KDYH GLUH FRQVHTXHQFHV LQ WKLV HUD RI FRXUWILOLQJWKLUW\VL[DVVLJQPHQWVRIHUURUZLWKWKH(OHYHQWK LQFUHDVLQJO\ ZRUOGZLGH FULPLQDO HQWHUSULVHV (YHQ LI IRU H[DPSOH D

'LVWULFW&RXUWRI$SSHDOV+HSUHVHUYHGKLV&RQIURQWDWLRQ SURFHVV RI H[WUDGLWLRQ PLJKW EH HPSOR\HG RU DQ LQWHUQDWLRQDO WUHDW\

&ODXVH FODLP E\ UDLVLQJ LW EHIRUH WKDW FRXUW  7KH VWDWH LQYRNHG WR VHFXUH D ZLWQHVVjV SUHVHQFH DW D IHGHUDO FULPLQDO WULDO WKH

DSSHOODWH FRXUW GHQLHG KLV DSSHDO RQ WKLV LVVXH KROGLQJ UHVXOWLQJ DWWDLQPHQW RI mRSWLPDOl FRQIURQWDWLRQ PLJKW ZHOO EH RXWZHLJKHG

m6SHFLILFDOO\ WKLV FRXUW FRQFOXGHV WKDW WKH VWDWH LV QRW E\ FRQVLGHUDWLRQV RI FRVW GHOD\ DQG WKH OLNH SDUWLFXODUO\ ZKHUH WKH XVH RI PRGHUQ WHOHFRPPXQLFDWLRQ WHFKQRORJ\ PLJKW DFKLHYH DOO RU PRVW RI WKH UHTXLUHGWRGHPRQVWUDWHWKHµXQDYDLODELOLW\jRIWKHZLWQHVVDV EHQHILWV RI FRQIURQWDWLRQ ZKLOH DYRLGLQJ VXFK FRVWV :H VKRXOG QRW IRUHFORVH WKLV SRVVLELOLW\ WKURXJK D FRQVWLWXWLRQDO UXOLQJ XQOHVV WKH  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

7R WKH FRQWUDU\ WKH LQFRUSRUDWLRQ RI D mUHDVRQDEOHQHVVl WKDWWHUPZDVGHILQHGLQ5REHUWV,QVWHDGLQDGGLWLRQWR VWDQGDUG LQWR WKH ODZ RI FRQIURQWDWLRQ LQYLWHV WKH VKRZLQJWKHUHOLDELOLW\RIWKHGHSRVLWLRQWKHVWDWHPXVWRQO\ FRQVLGHUDWLRQRIVXFKIDFWRUV5REHUWVKROGVWKDWWKHmOHQJWKV VKRZWKHH[LVWHQFHRIRQHRIWKHFLUFXPVWDQFHVVHWIRUWKLQ WRZKLFKWKHSURVHFXWLRQPXVWJRWRSURGXFHDZLWQHVVLV &ULP5  ) l  s$ DW   IRRWQRWH RPLWWHG   %HFDXVH DTXHVWLRQRIUHDVRQDEOHQHVVl5REHUWV86DW 7RQ\ZDVLQFDUFHUDWHGLQ$UL]RQDDWWKHWLPHRI%UXPOH\jV 6 &W DW  LQWHUQDO TXRWDWLRQV DQG FLWDWLRQ RPLWWHG  WULDO WKH UHTXLUHPHQWV RI 2KLR &ULP 5  )  KDG EHHQ 6LPLODUO\WKHIHGHUDOFRXQWHUSDUWWRWKH2KLRUXOHLQYRNHGE\ VDWLVILHG7KHVWDWHDSSHOODWHFRXUWUHDFKHGWKLVFRQFOXVLRQ WKHWULDOFRXUWLQWKLVFDVHSURYLGHVLQSHUWLQHQWSDUWWKDWWKH EDVHG LQ ODUJH SDUW RQ WKH VSHFLDO QDWXUH RI YLGHRWDSHG GHSRVLWLRQRIDZLWQHVVPD\EHLQWURGXFHGDWDFULPLQDOWULDO WHVWLPRQ\ DV RSSRVHG WR ZULWWHQ WUDQVFULSWV   m>6@LQFH D mLIWKHZLWQHVVLVXQDYDLODEOHDVXQDYDLODELOLW\LVGHILQHGLQ YLGHRWDSHG GHSRVLWLRQ JLYHV WKH MXU\ WKH RSSRUWXQLW\ WR 5XOH D RIWKH)HGHUDO5XOHVRI(YLGHQFHl)HG5&ULP FRQVLGHUWKHZLWQHVVjSK\VLFDOGHPHDQRULQGHWHUPLQLQJKLV 3 H DQG5XOH D LQWXUQVWDWHVWKDWDQRXWRIFRXUW FUHGLELOLW\ LW FRPHV WKH FORVHVW WR DSSUR[LPDWLQJ WKH GHFODUDQWLVXQDYDLODEOHLIKHLVmDEVHQWIURPWKHKHDULQJDQG FLUFXPVWDQFHVXQGHUZKLFKDFWXDOOLYHWHVWLPRQ\LVJLYHQl WKHSURSRQHQWRIDVWDWHPHQWKDVEHHQXQDEOHWRSURFXUHWKH s$DW 7KLVKROGLQJKRZHYHUZDVOLPLWHGWRFDVHV GHFODUDQWjV DWWHQGDQFH    E\ SURFHVV RU RWKHU UHDVRQDEOH LQZKLFKWKHYLGHRWDSHGGHSRVLWLRQmZDVWDNHQIRUWKHVSHFLILF PHDQVl)HG5(YLG D   SXUSRVHRIXVLQJLWLQOLHXRIOLYHWHVWLPRQ\DWWULDOls$ DW7KH2KLR6XSUHPH&RXUWGHFOLQHGWRKHDU%UXPOH\jV 6HYHUDOFRXUWVKDYHKHOGWKDWWKLVmUHDVRQDEOHQHVVlLQTXLU\ DSSHDO HQWDLOVFRQVLGHUDWLRQRIWKHH[SHQVHLQYROYHGLQVHFXULQJWKH ZLWQHVVjV SUHVHQFH 6HH HJ &KULVWLDQ Y 5KRGH  )G 0DJLVWUDWH sXGJH 9HFFKLDUHOOL LVVXHG D UHSRUW DQG  WK&LU   KROGLQJWKDWWKH6WDWHRI$UL]RQD UHFRPPHQGDWLRQ RQ 1RYHPEHU      7KH PDJLVWUDWH KDGPDGHUHDVRQDEOHHIIRUWVWRVHFXUHWKHSUHVHQFHRIIRUHLJQ MXGJHFRQFOXGHGWKDW%UXPOH\jVFRQIURQWDWLRQULJKWVKDGEHHQ ZLWQHVVHVDWDFULPLQDOWULDOEHIRUHRIIHULQJWKHLUYLGHRWDSHG YLRODWHG E\ WKH DGPLVVLRQ RI 7RQ\jV YLGHRWDSHG WHVWLPRQ\ GHSRVLWLRQVLQWRHYLGHQFHDQGmGHFOLQ>LQJ@WRGHPDQGWKDWWKH ZLWKRXW D VKRZLQJ WKDW 7RQ\ ZDV XQDYDLODEOH LQ WKH VWDWH EHDU WKH VLJQLILFDQW H[SHQVH RI UHLPEXUVLQJ WKH FRQVWLWXWLRQDO VHQVH  6SHFLILFDOO\ WKH PDJLVWUDWH MXGJH ZLWQHVVHVj WUDYHO IURP WKH &D\PDQ ,VODQGV WR $UL]RQDl UHDVRQHGWKDWmWKHVWDWHFRXUWGLVSRVHGRIWKHUHTXLUHPHQWRI 8QLWHG6WDWHVYsRKQSROO )G  G&LU  XQDYDLODELOLW\PHUHO\VWDWLQJWKDW6XSUHPH&RXUWFDVHODZGLG KROGLQJ WKDW WKH *RYHUQPHQW KDG VDWLVILHG WKH QRWDSSO\EHFDXVHWKHYLGHRWDSHZDVUHOLDEOH+RZHYHU mUHDVRQDEOHQHVVlVWDQGDUGRI)HG5&ULP3GHVSLWHLWV WKH6XSUHPH&RXUWKDVQHYHULQGLFDWHGRUHYHQVXJJHVWHG mUHIXVDO WR DFFHGH WR WKH>@ GHPDQGVl RI FHUWDLQ IRUHLJQ WKDW D YLGHRWDSH RU DQ\ RWKHU PHGLXP    LV DGPLVVLEOH ZLWQHVVHV WKDW WKH\ EH SDLG ZLWQHVV DQG VXEVLVWHQFH IHHV VLPSO\EHFDXVHLWLVUHOLDEOHls$DW0RUHRYHU EH\RQG WKH DPRXQWV FDOOHG IRU E\ VWDWXWH DQG WKDW WKH\ EH WKHPDJLVWUDWHMXGJHFRQFOXGHGWKDW7RQ\ZDVQRWXQDYDLODEOH FRPSHQVDWHG IRU WKH WLPH VSHQW DZD\ IURP WKHLU MREV  LQ WKH FRQVWLWXWLRQDO VHQVH  )LQDOO\ WKH PDJLVWUDWH MXGJH FRQFOXGHG WKDW WKH DGPLVVLRQ RI WKH YLGHRWDSHG GHSRVLWLRQ ZDVQRWKDUPOHVVHUURU m:LWKRXW7RQ\.LUNOLQjVWHVWLPRQ\  DUHDVRQDEOHMXU\FRXOGQRWFRQYLFW%UXPOH\RIFRPSOLFLW\WR 7KLV &LUFXLW DOVR KDV UHFRJQL]HG LQ WKH DQDORJRXV FRQWH[W RI )HG FRPPLW DJJUDYDWHG PXUGHUl  s$ DW   sXGJH 9HFFKLDUHOOL WKXV UHFRPPHQGHG WKDW %UXPOH\jV KDEHDV 5 &ULP 3  DQG WKH FRUUHVSRQGLQJ 6L[WK $PHQGPHQW ULJKW WR FRPSHO WKH SUHVHQFH DW WULDO RI ZLWQHVVHV LQ WKH GHIHQGDQWjV IDYRU WKDW JRYHUQPHQW H[SHQVH LV D UHOHYDQW FRQVLGHUDWLRQ LQ GHWHUPLQLQJ ZKHWKHU DQ LQGLJHQW SHWLWLRQEHJUDQWHGZLWKUHVSHFWWR%UXPOH\jVFRQYLFWLRQIRU GHIHQGDQW LV HQWLWOHG WR WKH LVVXDQFH RI D VXESRHQD ZLWKRXW SD\LQJ WKH FRPSOLFLW\WRFRPPLWDJJUDYDWHGPXUGHUWKDWWKHFRQYLFWLRQ DVVRFLDWHG FRVWV RU ZLWQHVV IHHV 6HH 8QLWHG 6WDWHV Y 5LJGRQ  )G  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

EHYDFDWHGDQGWKDWWKH6WDWHEHGLUHFWHGWRUHWU\%UXPOH\RQ ,W IXUWKHU VHHPV HYLGHQW WR PH WKDW WKH RXWFRPH RI WKLV WKDWFKDUJHZLWKLQDUHDVRQDEOHWLPH7KHPDJLVWUDWHMXGJH LQTXLU\ ZKHQ YLHZHG LQ LWV SURSHU OLJKW LV QRW VTXDUHO\ GLGQRWUHFRPPHQGKRZHYHUWKDWWKHGLVWULFWFRXUWYDFDWH FRQWUROOHGE\H[LVWLQJ6XSUHPH&RXUWSUHFHGHQWVDQGWKDWWKH %UXPOH\jV NLGQDSLQJ FRQYLFWLRQ DV WKH UHFRUG ZLWKRXW WKH 2KLR FRXUW GHFLVLRQV LQ WKLV FDVH WKHUHIRUH DUH QHLWKHU FRQVWLWXWLRQDOO\LQDGPLVVLEOHYLGHRWDSHDGHTXDWHO\VXSSRUWHG FRQWUDU\ WR QRU DQ XQUHDVRQDEOH DSSOLFDWLRQ RI WKHVH WKDWILQGLQJ SUHFHGHQWV  &UDLJ UHSUHVHQWV WKH &RXUWjV RQH DQG RQO\ DSSOLFDWLRQ RI D EDODQFLQJ DSSURDFK WR WKH &RQIURQWDWLRQ 2EMHFWLRQV WR WKH UHSRUW DQG UHFRPPHQGDWLRQ KDG WR EH &ODXVH$OWKRXJKWKDWFDVHLGHQWLILHVRQHVWDWHLQWHUHVWWKDWLV ILOHGZLWKLQWHQGD\V%UXPOH\ILOHGKLVREMHFWLRQVEXWWKH VXIILFLHQWO\LPSRUWDQWWRRXWZHLJKDGHIHQGDQWjVULJKWWRIDFH 6WDWHIDLOHGWRGRVR'LVWULFWsXGJH3ROVWHULVVXHGDQRUGHU WRIDFHFRQIURQWDWLRQ&UDLJFDQQRWIDLUO\EHUHDGDVKROGLQJ DQG PHPRUDQGXP RSLQLRQ RQ sDQXDU\    DGRSWLQJ WKDWRQO\WKLVLQWHUHVWZLOOVXIILFHDQGQRRWKHURUWKDWDQ\ sXGJH 9HFFKLDUHOOLjV UHSRUW DQG UHFRPPHQGDWLRQ LQ IXOO RWKHUSURSRVHGVWDWHLQWHUHVWPXVWEHDWOHDVWDVFRPSHOOLQJDV sXGJPHQWZDVHQWHUHGLQFRPSOLDQFHZLWK)HG5&LY3 WKHRQHDGGUHVVHGLQWKDWGHFLVLRQQRPDWWHUKRZGHPLQLPLV RQsDQXDU\  WKHDEULGJPHQWRIWKHGHIHQGDQWjVULJKWRIFRQIURQWDWLRQ7R WKHFRQWUDU\&UDLJSURYLGHVYLUWXDOO\QRJXLGDQFHDVWRZKDW 2Q sDQXDU\   WKH 6WDWH ILOHG D PRWLRQ IRU UHOLHI RWKHUVRUWVRIVWDWHLQWHUHVWVPLJKWEHVXIILFLHQWO\LPSRUWDQWWR XQGHU)HG5&LY3 E  FODLPLQJVXUSULVHDVDUHVXOWRI RYHUFRPH RQH RU PRUH DVSHFWV RI D GHIHQGDQWjV ULJKW RI WKHGLVWULFWFRXUWjVHQWU\RIMXGJPHQW7KH6WDWHFODLPHGWR FRQIURQWDWLRQ:KDWOLWWOHJXLGDQFHWKHUHLVFRPHVIURPWKH KDYHQHYHUEHHQVHUYHGZLWKDFRS\RIWKHPDJLVWUDWHMXGJHjV &RXUWjV YDULRXV UHIHUHQFHV WR SULRU SUHFHGHQWV ZKLFK KDG UHSRUWDQGUHFRPPHQGDWLRQDQGWKXVKDGEHHQXQDZDUHRIWKH XVHGVXFKEURDGODQJXDJHDVmFRQVLGHUDWLRQVRISXEOLFSROLF\ QHHGWRILOHLWVREMHFWLRQV7KH6WDWHH[SODLQHGWKDWZKHQWKH DQGWKHQHFHVVLWLHVRIWKHFDVHlDmVRFLHWDOLQWHUHVWLQDFFXUDWH GLVWULFWFRXUWVXEVWLWXWHG:DUGHQ.KHOOHK.RQWHKIRU:DUGHQ IDFWILQGLQJl mOHJLWLPDWH LQWHUHVWV LQ WKH FULPLQDO WULDO &XUWLV:LQJDUGDVUHVSRQGHQWRQWKHGRFNHWFRXQVHOIRUWKH SURFHVVl DQG WKH mQHFHVVLWLHV RI WULDO DQG WKH DGYHUVDU\ 6WDWHKDGEHHQPLVWDNHQO\WHUPLQDWHGDVFRXQVHORIUHFRUGDW SURFHVVl&UDLJ 86DW 6&WDW WKH VDPH WLPH  7KLV VXEVWLWXWLRQWHUPLQDWLRQ DSSDUHQWO\ RFFXUUHGRQ2FWREHU  *LYHQWKLVDEVHQFHRIFOHDUVLJQSRVWV,FDQQRWVHHKRZWKH 2KLR FRXUW GHFLVLRQV FDQ EH GHHPHG mFRQWUDU\ WRl RU DQ 2Q )HEUXDU\   sXGJH 3ROVWHU JUDQWHG WKH 6WDWHjV mXQUHDVRQDEOH DSSOLFDWLRQl RI mFOHDUO\ HVWDEOLVKHG )HGHUDO PRWLRQWRSHUPLWLWWRILOHREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjV ODZlDVUHTXLUHGXQGHUWKHJRYHUQLQJ$('3$VWDQGDUGVWR UHSRUW DQG UHFRPPHQGDWLRQ  LQ GRLQJ VR WKH GLVWULFW FRXUW RYHUWXUQ WKHP  ,I %UXPOH\ IDFHG WULDO DORQJ ZLWK WHQ FR WUHDWHGWKH6WDWHjVPRWLRQDVDPRWLRQIRUUHFRQVLGHUDWLRQRI GHIHQGDQWVDQGQRWMXVWRQHZHVXUHO\ZRXOGDJUHHDWVRPH WKHMXGJPHQWHQWHUHGRQsDQXDU\ 2Q)HEUXDU\ SRLQWWKDWWKH6WDWHQHHGQRWLQFXUWKHVWDJJHULQJH[SHQVHDQG %UXPOH\WKURXJKFRXQVHOREMHFWHGDQGPRYHGWKDWWKH DGPLQLVWUDWLYH EXUGHQ RI EULQJLQJ WKH VDPH ZLWQHVV IURP GLVWULFW FRXUW UHFRQVLGHU LWV RUGHU JUDQWLQJ UHFRQVLGHUDWLRQ $UL]RQDWR2KLRIRUHOHYHQVHSDUDWHWULDOVZKHUHYLGHRWDSLQJ 7KH6WDWHILOHGLWVREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjVUHSRUW WHFKQRORJ\ FRXOG HDVLO\ EH XVHG WR HQVXUH HDFK MXU\jV DQG UHFRPPHQGDWLRQ RQ )HEUXDU\    ,Q LWV RSSRUWXQLW\WRYLHZWKHFRQIURQWDWLRQVEHWZHHQWKLVZLWQHVV PHPRUDQGXP WKH 6WDWH UHLWHUDWHG LWV SRVLWLRQ WKDW WKH DQGHDFKFRGHIHQGDQW&RQVHTXHQWO\DOWKRXJKWKHPDMRULW\ DGPLVVLRQRI7RQ\.LUNOLQjVYLGHRWDSHGGHSRVLWLRQGLGQRW VXJJHVWVRWKHUZLVH,GRQRWEHOLHYHWKDWWKH&RQIURQWDWLRQ YLRODWH%UXPOH\jVFRQIURQWDWLRQULJKWV0RUHRYHUWKH6WDWH &ODXVHRYHUFRPHVDQ\DSSHDOWRFRQVLGHUDWLRQVRIH[SHQVH UHLWHUDWHG LWV DUJXPHQW WKDW HYHQ LI WKH DGPLVVLRQ RI WKH DGPLQLVWUDWLYHLPSHGLPHQWVRUPDQSRZHU  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG

VHFXUH7RQ\.LUNOLQjVSUHVHQFHDWWKHWULDOVRI:LOOLH%UXPOH\ YLGHRWDSHYLRODWHG%UXPOH\jVFRQIURQWDWLRQULJKWVWKHHUURU DQGKLVFRGHIHQGDQW'HOPDU.LUNOLQ,QIDFWWKH6WDWHGLG ZDVKDUPOHVV%UXPOH\UHVSRQGHGWRWKH6WDWHjVREMHFWLRQV LQFXUWKHFRQVLGHUDEOHH[SHQVHDQGDGPLQLVWUDWLYHEXUGHQRI DUJXLQJWKDWWKH6WDWHKDGQRWGHPRQVWUDWHGJURXQGVIRUUHOLHI REWDLQLQJ 7RQ\ .LUNOLQjV SUHVHQFH LQ 2KLR IRU WKHVH WULDOV XQGHU5XOH E   ZKLFK LQYROYHG ORFDWLQJ WKLV ZLWQHVV ZKR DSSDUHQWO\ KDG EHHQMDLOHGVLQFHSURVHFXWRUVLQLWLDOO\WUDYHOHGWR$UL]RQDWR 7KHGLVWULFWFRXUWLVVXHGLWVRUGHURQ0DUFKDJDLQ PHHWZLWKKLP VHFXULQJDQRUGHUIURPWKH$UL]RQDFRXUWV DGRSWLQJWKHPDJLVWUDWHMXGJHjVUHSRUWDQGUHFRPPHQGDWLRQ DXWKRUL]LQJKLVUHPRYDOIURPWKDW6WDWHjVSULVRQV\VWHPDQG 7KHGLVWULFWFRXUWGHQLHGWKH6WDWHjVPRWLRQIRUUHOLHIIURPWKH VHQGLQJWZRGHSXWLHVGRZQWR$UL]RQDWRHVFRUW.LUNOLQWR HDUOLHUMXGJPHQW7KXVWKHGLVWULFWFRXUWKHOGWKDW%UXPOH\ 2KLR3UHVXPDEO\KDYLQJWDNHQWKHVHVWHSVWREULQJ7RQ\ ZDV HQWLWOHG WR D QHZ WULDO RQ WKH FRPSOLFLW\ WR FRPPLW .LUNOLQXSIURP$UL]RQDWRWHVWLI\DW'HOPDU.LUNOLQjVWULDO PXUGHUFKDUJHVEXWWKDWKHZDVQRWHQWLWOHGWRUHOLHIRQWKH WKHSURVHFXWLRQZRXOGKDYHSUHIHUUHGWKDWWKLVZLWQHVVUHPDLQ NLGQDSLQJFRQYLFWLRQ,QDGGLWLRQWKHGLVWULFWFRXUWKHOGWKDW LQFDUFHUDWHGLQ2KLRXQWLO%UXPOH\jVWULDO7KHWULDOMXGJH %UXPOH\jVPRWLRQRSSRVLQJUHFRQVLGHUDWLRQZDVPRRW7KH KRZHYHU IRUHFORVHG WKLV SRVVLELOLW\ VWDWLQJ WKDW WKH ORFDO 6WDWHILOHGDWLPHO\QRWLFHRIDSSHDORQ$SULO MDLOjVSRSXODWLRQH[FHHGHGWKHOLPLWLPSRVHGE\WKHIHGHUDO FRXUWDWWKHWLPHDQGWKDW.LUNOLQKDGWREHVHQWmEDFNIURP ,,$1$/<6,6 ZKHQFHKHFDPHl s$DW $ 7KH6WDWH,V1RW/LPLWHGWR$SSHDOLQJ WKH'LVWULFW 7KXVWKHTXHVWLRQLVQRWDVWKHPDMRULW\VXJJHVWVZKHWKHU &RXUWjV'HQLDORI,WV0RWLRQIRU5HOLHI8QGHU5XOH %UXPOH\jVULJKWWRFRQIURQWDWLRQLVRXWZHLJKHGE\WKH6WDWHjV  E   PHUH GHVLUH WR mFRQVHUY>H@ LWV UHVRXUFHVl 0DMRULW\ 2S DW  E\UHIXVLQJWRSURGXFHDQDYDLODEOHZLWQHVVDWWULDO7KH $VDWKUHVKROGPDWWHUZHPXVWUHVROYHZKHWKHUWKH6WDWHLV SURSHULQTXLU\UDWKHULVZKHWKHUWKH6WDWHKDYLQJ L LQFXUUHG LPSURSHUO\DUJXLQJWKHPHULWVRI%UXPOH\jVKDEHDVSHWLWLRQLQ WKH H[SHQVH RI VHFXULQJ WKH SUHVHQFH RI DQ RXWRIVWDWH WKLV DSSHDO  %UXPOH\ DUJXHV WKDW WKH 6WDWH LV RQO\ DEOH WR ZLWQHVVDWDFRGHIHQGDQWjVWULDO LL WDNHQVWHSVZKLOHWKLV DSSHDO WKH GLVWULFW FRXUWjV $SULO  RUGHU GHQ\LQJ WKH ZLWQHVVZDVLQLWVWHPSRUDU\FXVWRG\WRDIIRUGDQRSSRUWXQLW\ 6WDWHjV5XOH E PRWLRQIRUUHOLHIIURPMXGJPHQWEHFDXVH IRU%UXPOH\WRFRQIURQWWKLVZLWQHVVIDFHWRIDFHDQGIXOO\ WKH6WDWHGLGQRWILOHDWLPHO\QRWLFHRIDSSHDOIURPWKHGLVWULFW FURVVH[DPLQHKLPLQDWULDOOLNHVHWWLQJDQGLQWKHSUHVHQFH FRXUWjVMXGJPHQWRQWKHPHULWVZKLFKZDVLVVXHGRQsDQXDU\ RI WKH WULDO MXGJH DQG LLL  FDSWXUHG WKLV FRQIURQWDWLRQ RQ  5DWKHUWKDQILOLQJDWLPHO\DSSHDORIWKDWMXGJPHQW YLGHRWDSHIRUWKHEHQHILWRIWKHMXU\QHYHUWKHOHVVLVFRPSHOOHG WKH6WDWHPRYHGIRUUHOLHIXQGHU5XOH E WKLVPRWLRQZDV XQGHU WKH &RQIURQWDWLRQ &ODXVH WR LQFXU WKH DGGLWLRQDO VXEVHTXHQWO\GHQLHG H[SHQVHDQGDGPLQLVWUDWLYHEXUGHQRIEULQJLQJWKLV RXWRI VWDWHZLWQHVVEDFNWR2KLRDIHZZHHNVODWHUIRU%UXPOH\jV :H ZLOO WUHDW WKLV FDVH DV DQ DSSHDO RI ERWK WKH GLVWULFW WULDOGHVSLWHWKHODFNRIDQ\LQGLFDWLRQWKDWWKLVZLWQHVVjVOLYH FRXUWjV GHQLDO RI WKH 6WDWHjV 5XOH  E   PRWLRQ DQG WKH WHVWLPRQ\DWWULDOZRXOGGLIIHULQDQ\UHVSHFWIURPKLVWULDO GLVWULFWFRXUWjVILQDOMXGJPHQW7KH6WDWHGLGQRWILOHDQRWLFH WHVWLPRQ\FDSWXUHGRQYLGHRWDSHDVKRUWWLPHHDUOLHU,WVHHPV RIDSSHDORIWKHGLVWULFWFRXUWjVRUGHUJUDQWLQJKDEHDVUHOLHILQ DSSDUHQWWRPHLQVKRUWWKDWWKHmLPSRUWDQWVWDWHLQWHUHVWl sDQXDU\,QVWHDGWKH6WDWHILOHGD5XOH E PRWLRQIRU LQTXLU\LVDJRRGGHDOPRUHFRPSOH[DQGQXDQFHGWKDQPLJKW UHOLHIZLWKLQWHQGD\VRIWKHGLVWULFWFRXUWjVILQDOMXGJPHQW EHVXJJHVWHGE\WKHPDMRULW\jVDEEUHYLDWHGDQDO\VLV WKLVWROOHGWKHWLPHIRUWKHILOLQJRIDQDSSHDO6HH)HG5 $SS3 D  $ YL :LWKLQWKLUW\GD\VRIWKHGHQLDORIWKDW PRWLRQ WKH 6WDWH ILOHG D QRWLFH RI DSSHDO mIURP WKH ILQDO  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

MXGJPHQWHQWHUHGRQWKHUGGD\RI0DUFKls$ IRUWKLQWKH&RQIURQWDWLRQ&ODXVHnQDPHO\WKHULJKWRIWKH DW   7KDW MXGJPHQW LQFOXGHG ERWK WKH GHQLDO RI WKH DFFXVHGmWREHFRQIURQWHGZLWKWKHZLWQHVVHVDJDLQVWKLPln 6WDWHjV5XOH E  PRWLRQDQGWKHJUDQWLQJRI%UXPOH\jV DQGVRGLVSHQVHGZLWKRQHRIWKHmVSHFLILFWULDOSURFHGXUHV KDEHDVSHWLWLRQRQKLVFRQYLFWLRQIRUFRPSOLFLW\WRFRPPLW WKDWZHUHWKRXJKWWRDVVXUHUHOLDEOHHYLGHQFHl&UDLJ  DJJUDYDWHGPXUGHU7KXVZHUHDGWKH6WDWHjVQRWLFHRIDSSHDO 86 DW   6 &W DW  6FDOLD s EURDGO\WRLQFOXGHWKHGLVWULFWFRXUWjVILQDOMXGJPHQWRQWKH GLVVHQWLQJ  PHULWVRI%UXPOH\jVKDEHDVSHWLWLRQ ,W ZLOO QRW GR WKHQ WR VXPPDULO\ GLVPLVV WKH 6WDWHjV % 7KH'LVWULFW&RXUW'LG1RW(UULQ*UDQWLQJ%UXPOH\ LQWHUHVW KHUH DV QRW ULVLQJ WR WKH mFRPSHOOLQJl OHYHO RI WKH +DEHDV5HOLHI VKRZLQJRIQHFHVVLW\PDGHLQ&UDLJ5DWKHUEHFDXVHWKHFRUH FRQVWLWXWLRQDOJXDUDQWHHRIFRQIURQWDWLRQLVQRWWKUHDWHQHGLQ  7KH $GPLVVLRQ RI WKH 9LGHRWDSHG 'HSRVLWLRQ WKLVFDVHLWIROORZVWKDWDOHVVHU DOEHLWVWLOOLPSRUWDQW LQWHUHVW :LWKRXWD)LQGLQJWKDW7RQ\:DV8QDYDLODEOHLQ ZLOOVXIILFHWRWLSWKHEDODQFHLQIDYRURIWKHDGPLVVLELOLW\RI WKH&RQVWLWXWLRQDO6HQVH:DV&RQWUDU\WR&OHDUO\ 7RQ\.LUNOLQjVYLGHRWDSHGWHVWLPRQ\,EHOLHYHWKDWVXFKDQ (VWDEOLVKHG6XSUHPH&RXUW3UHFHGHQW LQWHUHVWKDVEHHQVKRZQDQGWKDWWKHPDMRULW\jVFRQFOXVLRQWR WKHFRQWUDU\UHVWVXSRQDQLPSURSHUFKDUDFWHUL]DWLRQRIWKLV D 6WDQGDUGRI5HYLHZ LQWHUHVW :H UHYLHZ GH QRYR WKH OHJDO FRQFOXVLRQV RI WKH GLVWULFW 7RUHDGWKHPDMRULW\jVWUHDWPHQWRIWKLVLVVXHRQHPLJKW FRXUWVLWWLQJLQKDEHDV3DOD]]RORY*RUF\FD)G WKLQN WKDW WKH 6WDWH RI 2KLR PDGH QR HIIRUW ZKDWVRHYHU WR  WK&LU FHUWGHQLHGBBB6&WBBB86/: 86 2FW    1R     %HFDXVH %UXPOH\jV KDEHDVSHWLWLRQZDVILOHGDIWHU$SULO LWLVJRYHUQHG  E\WKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWRI  ,Q WKLV VHQVH &UDLJ SODLQO\ FRXQWHQDQFHV D IDU PRUH VLJQLILFDQW m$('3$l   3XUVXDQW WR $('3$ KDEHDV FRUSXV UHOLHI LV GHQLDO RI D FRUH &RQIURQWDWLRQ &ODXVH JXDUDQWHH WKDQ DQ\ PLQRU

DYDLODEOHZLWKUHVSHFWWRFODLPVDGMXGLFDWHGRQWKHPHULWVLQ DEULGJPHQW SUHVHQWHG KHUH , OLNH sXVWLFH 6FDOLD ZRXOG EH PXFK PRUH UHWLFHQW WR DFFHSW VXFK D IXQGDPHQWDO GHSULYDWLRQ RI WKH FRUH VWDWHFRXUWRQO\LIWKHDGMXGLFDWLRQ FRQVWLWXWLRQDO ULJKW RI IDFHWRIDFH FRQIURQWDWLRQ EHWZHHQ DFFXVHG DQG DFFXVHU  UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\  3HUKDSV QRWKLQJ PRUH VXFFLQFWO\ FDSWXUHV WKH FUX[ RI P\ HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH GLVDJUHHPHQW ZLWK WKH PDMRULW\ WKDQ LWV FODLP WKDW &UDLJ mIDVKLRQHG D UXOH 6XSUHPH&RXUWRIWKH8QLWHG6WDWHV RU PRUH SURWHFWLYH RI FRQIURQWDWLRQ ULJKWV WKDQ WKDW IDYRUHG E\ WKH GLVVHQWl 0DMRULW\ 2S DW  Q  7KLV LV HLWKHU D QRYHO UHDGLQJ RI &UDLJ RU D  UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ PLVXQGHUVWDQGLQJ RI P\ YLHZV &UDLJ VDQFWLRQHG DQ RXWULJKW GHQLDO RI

XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRI DQ\ RSSRUWXQLW\ IRU IDFHWRIDFH FRQIURQWDWLRQ EHWZHHQ DFFXVHG DQG DFFXVHU +HUH E\ FRQWUDVW RQH VHDUFKHV WKH UHFRUG DQG WKH PDMRULW\ WKHHYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ RSLQLRQ LQ YDLQ IRU DQ\ H[DPSOH RI KRZ %UXPOH\jV FRUH ULJKW RI FRQIURQWDWLRQ ZDV DEULGJHG LQ DQ\ ZD\ ,W VHHPV WR PH WKHUHIRUH WKDW LI  86&  G      0RUHRYHU WKH ILQGLQJV RI IDFW DQ mLPSRUWDQWl VWDWH LQWHUHVW VXIILFHG WR XSKROG WKH SURFHGXUH HPSOR\HG PDGHE\DVWDWHFRXUWDUHSUHVXPHGFRUUHFWDQGFDQRQO\EH LQ&UDLJ  DQ mLPSRUWDQWl VWDWH LQWHUHVW VXUHO\ VKRXOG DOVR VXIILFH KHUH 0\ FRQWUDYHQHGZKHUHWKHKDEHDVSHWLWLRQHUFDQVKRZE\FOHDU YLHZ RQ WKLV SRLQW GRHV QRW UHVW XSRQ DQ\ mVOLGLQJ VFDOHl DVVHVVPHQW RI

DQGFRQYLQFLQJHYLGHQFHWKDWWKHVWDWHFRXUWjVIDFWXDOILQGLQJV UHOLDELOLW\ YHUVXV JRYHUQPHQWDO LQWHUHVW EXW XSRQ P\ XQGHUVWDQGLQJ RI ZKDW LV HPERGLHG LQ WKH FRUH FRQVWLWXWLRQDO JXDUDQWHH RI mFRQIURQWDWLRQl  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

XVHRIWKHRQHZD\FORVHGFLUFXLWWHOHYLVLRQSURFHGXUH ZHUHHUURQHRXV86&† H  7KLVSUHVXPSWLRQ ZKHUH QHFHVVDU\ WR IXUWKHU DQ LPSRUWDQW VWDWH LQWHUHVW RIFRUUHFWQHVVDOVRDSSOLHVWRWKHIDFWXDOILQGLQJVRIDVWDWH GRHV QRW LPSLQJH XSRQ WKH WUXWKVHHNLQJ RU V\PEROLF DSSHOODWH FRXUW EDVHG RQ WKH VWDWH WULDO UHFRUG  6XPQHU Y SXUSRVHVRIWKH&RQIURQWDWLRQ&ODXVH 0DWD 86     &UDLJ 86DW6&WDW 7KH6XSUHPH&RXUWKDVUHFHQWO\LQWHUSUHWHG† G  WR GLVWLQJXLVKEHWZHHQGHFLVLRQVWKDWDUHmFRQWUDU\WRlDQGWKRVH ,QDSSO\LQJ&UDLJjVEDODQFLQJWHVWWRWKHIDFWVEHIRUHXVLW WKDWDUHDQmXQUHDVRQDEOHDSSOLFDWLRQRIlFOHDUO\HVWDEOLVKHG ILUVWPXVWEHHPSKDVL]HGWKDWWKHYLGHRWDSLQJSURFHGXUHXVHG SUHFHGHQW:LOOLDPVY7D\ORU 86  $ LQ WKLV FDVH SUHVHUYHG DOO DQG QRW PHUHO\ PRVW RI WKH VWDWHFRXUWGHFLVLRQZLOOEHmFRQWUDU\WRlFOHDUO\HVWDEOLVKHG HOHPHQWV RI WKH ULJKW RI FRQIURQWDWLRQ  ,Q LWV KDVWH WR 6XSUHPH&RXUWSUHFHGHQWZKHUHmWKHVWDWHFRXUWFRQIURQWVD GLVWLQJXLVK&UDLJWKHPDMRULW\XWWHUO\IDLOVWRDFNQRZOHGJH VHW RI IDFWV WKDW DUH PDWHULDOO\ LQGLVWLQJXLVKDEOH IURP D WKH VLJQLILFDQFH RI WKH IDFWV L  WKDW %UXPOH\ FRQIURQWHG >6XSUHPH&RXUW@GHFLVLRQDQGQHYHUWKHOHVVDUULYHVDWD .LUNOLQIDFHWRIDFHDVKHWHVWLILHG  LL WKDW.LUNOLQWHVWLILHG UHVXOWGLIIHUHQWIURP>6XSUHPH&RXUW@SUHFHGHQWl,GDW XQGHU RDWK  LLL  WKDW %UXPOH\ KDG D IXOO RSSRUWXQLW\ WR $ VWDWH FRXUW GHFLVLRQ LV DOVR mFRQWUDU\ WRl HVWDEOLVKHG FRQWHPSRUDQHRXVO\ FURVVH[DPLQH .LUNOLQ DV KH WHVWLILHG 6XSUHPH&RXUWSUHFHGHQWZKHUHWKHVWDWHFRXUWmDSSOLHVDUXOH LY WKDWWKLVFRQIURQWDWLRQWRRNSODFHLQWKHFRXUWURRPDQGLQ WKDW FRQWUDGLFWV WKH JRYHUQLQJ ODZ VHW IRUWKl LQ WKRVH WKHSUHVHQFHRIWKHWULDOMXGJH DQG Y WKDWWKHMXU\ZDVDEOH SUHFHGHQWV  ,G DW   $ VWDWH FRXUW GHFLVLRQ LV DQ WRYLHZ DOEHLWE\YLGHRPRQLWRU WKHGHPHDQRURI.LUNOLQDV mXQUHDVRQDEOHDSSOLFDWLRQRIl6XSUHPH&RXUWSUHFHGHQWZKHQ KHWHVWLILHG 6XUHO\DVZHFRQVLGHUZKHWKHUWKH6WDWHKDV WKH VWDWH FRXUW FRUUHFWO\ LGHQWLILHV WKH JRYHUQLQJ OHJDO LGHQWLILHGDVXIILFLHQWO\LPSRUWDQWLQWHUHVWDGYDQFHGE\WKH SULQFLSOH EXW XQUHDVRQDEO\ DSSOLHV LW WR WKH IDFWV RI WKH LQWURGXFWLRQRI.LUNOLQjVYLGHRWDSHGWHVWLPRQ\ZHPXVWEHDU SHWLWLRQHUjVFDVH,GDW:HPD\QRWRYHUWXUQDVWDWH LQPLQGWKDWHYHU\VLQJOHSXUSRVHEHKLQGWKH&RQIURQWDWLRQ GHFLVLRQ VLPSO\ EHFDXVH ZH FRQFOXGH WKDW WKH VWDWH FRXUW &ODXVHZKHWKHUmWUXWKVHHNLQJlRUmV\PEROLFlZDVDFKLHYHG LQFRUUHFWO\ DSSOLHG 6XSUHPH &RXUW SUHFHGHQW  ,G DW  WKURXJKWKHSURFHGXUHHPSOR\HGE\WKHSURVHFXWLRQLQWKLV 5DWKHUWRRYHUWXUQDVWDWHFRXUWGHFLVLRQZHPXVWGHWHUPLQH FDVH  7KH UHVXOW ZDV WHVWLPRQ\ WKDW XQTXHVWLRQDEO\ ZDV WKDW WKH LWV DSSOLFDWLRQ RI 6XSUHPH &RXUW SUHFHGHQW ZDV UHOLDEOH DQG WKH PDMRULW\ GRHV QRW FRQWHQG RWKHUZLVH  ,Q REMHFWLYHO\XQUHDVRQDEOH,G FRQWUDVW WKH SURFHGXUH DSSURYHG LQ &UDLJ DEULGJHG D mFDWHJRULFDOJXDUDQWHHRIWKH&RQVWLWXWLRQlDVH[SUHVVO\VHW ,QUHYLHZLQJDVWDWHFRXUWGHFLVLRQXQGHUWKLVVWDQGDUGZH ORRNRQO\WRWKH6XSUHPH&RXUWKROGLQJVWKDWH[LVWHGDWWKH WLPHRIWKHVWDWHFRXUWjVGHFLVLRQ,GDW:HPD\QRW EDVHRXUGHFLVLRQRQ6XSUHPH&RXUWGLFWDRUWKHGHFLVLRQVRI ,W VKRXOG EH QRWHG WKDW QRWKLQJ LQ &UDLJ ZRXOG VXSSRUW D GLVWLQFWLRQ WKH FRXUWV RI DSSHDOV  6HH LG  +HUEHUW Y %LOO\  )G EHWZHHQ WKH OLYH FORVHGFLUFXLW SURFHGXUH DW LVVXH LQ WKDW FDVH DQG WKH YLGHRWDSHG WHVWLPRQ\ SUHVHQWHG WR WKH MXU\ LQ WKLV FDVH 7R WKH FRQWUDU\  WK&LU   &UDLJ REVHUYHV ZLWK DSSURYDO WKDW m>W@KLUW\VHYHQ 6WDWHV    SHUPLW WKH XVH RI YLGHRWDSHG WHVWLPRQ\ RI VH[XDOO\ DEXVHG FKLOGUHQl &UDLJ    86 DW E $QDO\VLV   6 &W DW  IRRWQRWH ZLWK FLWDWLRQV RPLWWHG VHH DOVR 6SLJDUROR Y 0HDFKXP  )G    G &LU   UHO\LQJ RQ 7KH 6XSUHPH &RXUW KDV QRW DGGUHVVHG WKH VSHFLILF IDFW &UDLJ LQ UHMHFWLQJ D &RQIURQWDWLRQ &ODXVH FKDOOHQJH WR WKH LQWURGXFWLRQ RI WKH YLGHRWDSHG WHVWLPRQ\ RI FKLOG ZLWQHVVHV DW D FULPLQDO WULDO DQG VWDWLQJ SDWWHUQSUHVHQWHGLQWKLVFDVHLHZKHWKHUWKHDGPLVVLRQRI WKDW m&UDLJ GLG QRW UHVW RQ WKH GLVWLQFWLRQ EHWZHHQ FRQWHPSRUDQHRXV DQG YLGHRWDSHGSULRUWHVWLPRQ\ZLWKRXWDVKRZLQJRIWKHZLWQHVVjV YLGHRWDSHG WHVWLPRQ\l  XQDYDLODELOLW\YLRODWHVWKHFRQIURQWDWLRQULJKWVRIDFULPLQDO  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

GHIHQGDQW7KXVLQDQDO\]LQJWKLVLVVXHWKHPDJLVWUDWHMXGJH WKLVSUHIHUHQFHRFFDVLRQDOO\PXVW\LHOGWRmFRQVLGHUDWLRQVRI DSSOLHG WKH mXQUHDVRQDEOH DSSOLFDWLRQl SURQJ RI †  G SXEOLF SROLF\ DQG WKH QHFHVVLWLHV RI WKH FDVHl &UDLJ   EHFDXVHWKH6XSUHPH&RXUWKDGQHYHUDGGUHVVHGWKHVSHFLILF 86 DW    6 &W DW  LQWHUQDO TXRWDWLRQV DQG IDFWVSUHVHQWHGE\%UXPOH\jVKDEHDVSHWLWLRQs$DW FLWDWLRQVRPLWWHG $VQRWHGHDUOLHUWKH&RXUWIRXQGWKDWWKH FLWLQJ 7XFNHU Y 3UHOHVQLN  )G   WK &LU SUHVHQWDWLRQ RI D FKLOG ZLWQHVVjV WHVWLPRQ\ YLD RQHZD\  *LYHQUHFHQWUHILQHPHQWVLQKDEHDVODZKRZHYHU FORVHGFLUFXLWWHOHYLVLRQWKRXJKQRWDIIRUGLQJWKHRSSRUWXQLW\ WKLV FDVH LV DSSURSULDWHO\ DQDO\]HG XQGHU WKH mFRQWUDU\ WRl IRUDIDFHWRIDFHFRQIURQWDWLRQEHWZHHQDFFXVHGDQGDFFXVHU SURQJRI† G 8QGHU:LOOLDPVm>D@VWDWHFRXUWGHFLVLRQ GRHVQRWRIIHQGWKH&RQIURQWDWLRQ&ODXVHLIVXSSRUWHGE\mD ZLOOFHUWDLQO\EHFRQWUDU\WRFOHDUO\HVWDEOLVKHGSUHFHGHQW SURSHUILQGLQJRIQHFHVVLW\l&UDLJ 86DW6 LIWKHVWDWHFRXUWDSSOLHVDUXOHWKDWFRQWUDGLFWVWKHJRYHUQLQJ &WDW,QVRUXOLQJWKH&RXUWDFNQRZOHGJHGWKDWWKLV ODZVHWIRUWKLQ>6XSUHPH&RXUW@FDVHVl 86DW SURFHGXUHmSUHYHQWVDFKLOGZLWQHVVIURPVHHLQJWKHGHIHQGDQW 7KHH[DPSOHSURYLGHGE\WKH:LOOLDPV&RXUWWUDFNVFORVHO\ DV KH RU VKH WHVWLILHV DJDLQVW WKH GHIHQGDQW DW WULDOl EXW ZLWKWKHSUHVHQWFDVH QHYHUWKHOHVVH[SODLQHG 7DNH IRU H[DPSOH RXU GHFLVLRQ LQ 6WULFNODQG Y :H ILQG LW VLJQLILFDQW KRZHYHU WKDW 0DU\ODQGjV :DVKLQJWRQ,IDVWDWHFRXUWZHUHWRUHMHFWDSULVRQHUjV SURFHGXUH SUHVHUYHV DOO RI WKH RWKHU HOHPHQWV RI WKH FODLPRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHORQWKHJURXQGV FRQIURQWDWLRQ ULJKW   7KH FKLOG ZLWQHVV PXVW EH WKDWWKHSULVRQHUKDGQRWHVWDEOLVKHGE\DSUHSRQGHUDQFH FRPSHWHQW WR WHVWLI\ DQG PXVW WHVWLI\ XQGHU RDWK  WKH RIWKHHYLGHQFHWKDWWKHUHVXOWRIKLVFULPLQDOSURFHHGLQJ GHIHQGDQWUHWDLQVIXOORSSRUWXQLW\IRUFRQWHPSRUDQHRXV ZRXOG KDYH EHHQ GLIIHUHQW WKDW GHFLVLRQ ZRXOG EH FURVVH[DPLQDWLRQ DQGWKHMXGJHMXU\DQGGHIHQGDQWDUH mGLDPHWULFDOO\ GLIIHUHQWl mRSSRVLWH LQ FKDUDFWHU RU DEOHWRYLHZ DOEHLWE\YLGHRPRQLWRU WKHGHPHDQRU DQG QDWXUHl DQG mPXWXDOO\ RSSRVHGl WR RXU FOHDUO\ ERG\ RIWKHZLWQHVVDVKHRUVKHWHVWLILHV$OWKRXJKZH HVWDEOLVKHGSUHFHGHQWEHFDXVHZHKHOGLQ6WULFNODQGWKDW DUH PLQGIXO RI WKH PDQ\ VXEWOH HIIHFWV IDFHWRIDFH WKH SULVRQHU QHHG RQO\ GHPRQVWUDWH D mUHDVRQDEOH FRQIURQWDWLRQ PD\ KDYH RQ DQ DGYHUVDU\ FULPLQDO SUREDELOLW\WKDWWKHUHVXOWRIWKHSURFHHGLQJZRXOG SURFHHGLQJ WKH SUHVHQFH RI WKHVH RWKHU HOHPHQWV RI KDYHEHHQGLIIHUHQWl FRQIURQWDWLRQ n RDWK FURVVH[DPLQDWLRQ DQG REVHUYDWLRQ RI WKH ZLWQHVVj GHPHDQRU n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jWHVWLPRQ\PD\EHVDLGWREHWHFKQLFDOO\ DGPLWWHGWKHYLGHRWDSHGGHSRVLWLRQZLWKRXWILUVWGHWHUPLQLQJ JLYHQ RXW RI FRXUW WKRXJK ZH GR QRW VR KROG  WKHVH DVVXUDQFHVRIUHOLDELOLW\DQGDGYHUVDULQHVVDUHIDUJUHDWHU WKDQWKRVHUHTXLUHGIRUDGPLVVLRQRIKHDUVD\WHVWLPRQ\  XQGHUWKH&RQIURQWDWLRQ&ODXVH6HH5REHUWV86 :LOOLDPV Y 7D\ORU  86    ZDV GHFLGHG DIWHU WKH PDJLVWUDWH MXGJHjV UHSRUW DQG UHFRPPHQGDWLRQ DQG WKH GLVWULFW FRXUWjV WZR DW6&WDW :HDUHWKHUHIRUHFRQILGHQWWKDW GHFLVLRQV LQ WKH SUHVHQW FDVH  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

FRXUWSURFHGXUHVHPSOR\HGLQFRQQHFWLRQZLWKWKLVWHVWLPRQ\ WKDWWKHGHSRQHQWZDVXQDYDLODEOHLQWKHFRQVWLWXWLRQDOVHQVH ERWKDWWKHWLPHLWZDVWDNHQDQGZKHQLWZDVRIIHUHGDWWULDO DVUHTXLUHGE\5REHUWV7KHVWDWHFRXUWRIDSSHDOVZHQWHYHQ DGHTXDWHO\ SUHVHUYHG %UXPOH\jV ULJKWV XQGHU WKH IXUWKHUGHWHUPLQLQJWRLWVRZQVDWLVIDFWLRQWKDWDVKRZLQJRI &RQIURQWDWLRQ&ODXVH XQDYDLODELOLW\ LV XQQHFHVVDU\ EHFDXVH RI WKH LQKHUHQW UHOLDELOLW\RIYLGHRWDSHGWHVWLPRQ\ m>7@KLVFRXUWFRQFOXGHV 7KHPDMRULW\DSSDUHQWO\UHFRJQL]HVDWOHDVWLPSOLFLWO\WKDW WKDW WKH VWDWH LV QRW UHTXLUHG WR GHPRQVWUDWH WKH &UDLJ KDV VRPH EHDULQJ XSRQ WKLV FDVH  8SRQ GRLQJ VR µXQDYDLODELOLW\jRIWKHZLWQHVVDVWKDWWHUPZDVGHILQHGE\WKH KRZHYHULWVXPPDULO\UHMHFWVWKH6WDWHjVSURSRVHGDQDORJ\ 8QLWHG6WDWHV6XSUHPH&RXUWLQ5REHUWVls$DW,Q EHWZHHQWKLVFDVHDQG&UDLJUHDVRQLQJWKDW&UDLJLQYROYHG RWKHUZRUGVWKHGLIILFXOW\ZLWKWKHVWDWHFRXUWVjGHFLVLRQVLV WKH mLPSRUWDQW SXEOLF LQWHUHVWl LQ mSURWHFW>LQJ@    PLQRU QRWZLWKWKHLUDSSOLFDWLRQRI5REHUWVEXWUDWKHUWKHLUUHIXVDO YLFWLPV RI VH[ FULPHV IURP IXUWKHU WUDXPD DQG WRDSSO\5REHUWVDWDOO&I:LOOLDPV 86DW HPEDUUDVVPHQWl 0DMRULW\ 2S DW   TXRWLQJ &UDLJ   86DW6&WDW ZKLOHWKH6WDWHLQWKLVFDVH ,Q 5REHUWV WKH 6XSUHPH &RXUW HVWDEOLVKHG D WZRSDUW SXUSRUWHGO\ FLWHV RQO\ mDGPLQLVWUDWLYH FRQYHQLHQFH DQG mJHQHUDODSSURDFKl86DWWRWKHOLPLWDWLRQVWKDWWKH EXGJHWDU\FRQFHUQVl LGDW 7KLVFRQFOXVLRQLQP\ &RQIURQWDWLRQ&ODXVHLPSRVHVRQWKHDGPLVVLELOLW\RIKHDUVD\ RSLQLRQUHVWVXSRQDQLPSURSHUFDOLEUDWLRQRIERWKSURQJVRI DJDLQVWDFULPLQDOGHIHQGDQW WKHEDODQFLQJWHVWHPSOR\HGLQ&UDLJ )LUVWLQFRQIRUPDQFHZLWKWKH)UDPHUVjSUHIHUHQFHIRU  &UDLJ KROGV WKDW WKH 6L[WK $PHQGPHQW UHIOHFWV RQO\D IDFHWRIDFH DFFXVDWLRQ WKH 6L[WK $PHQGPHQW mSUHIHUHQFHIRUIDFHWRIDFHFRQIURQWDWLRQDWWULDOl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mWKH ULJRUV RI VLWWLQJ WKURXJK D MXU\ WULDOl  )G DW  :H ILUVW WKH GHIHQGDQW DQ HIIHFWLYH PHDQV WR WHVW DGYHUVH FLWHG 5REHUWV j UHTXLUHPHQW RI XQDYDLODELOLW\ DQG IRXQG WKDW WKH WZR HYLGHQFHWKH&ODXVHFRXQWHQDQFHVRQO\KHDUVD\PDUNHG ZLWQHVVHV mZHUH LQ IDFW µDYDLODEOHj WR WHVWLI\ DW WKH WULDOl LQ WKH OLWHUDO ZLWK VXFK WUXVWZRUWKLQHVV WKDW WKHUH LV QR PDWHULDO VHQVH RI WKH ZRUG EXW mZHUH µXQDYDLODEOHj RQO\ LQ WKH VHQVH WKDW WKH\ GHSDUWXUHIURPWKHUHDVRQRIWKHJHQHUDOUXOH SUHIHUUHG QRW WR WHVWLI\ DQG ZHUH LQ SRRU KHDOWK DFFRUGLQJ WR WKH>LU@ GRFWRUjV DIILGDYLWl  )G DW  :H WKHQ WXUQHG WR &UDLJ WR GHFLGH ,G FLWDWLRQVLQWHUQDOTXRWDWLRQPDUNVDQGIRRWQRWHRPLWWHG  ZKHWKHU WKH SRRU KHDOWK RI WKHVH ZLWQHVVHV SURYLGHG DQ DGHTXDWH EDVLV WR GHHP WKHP FRQVWLWXWLRQDOO\ mXQDYDLODEOHl REVHUYLQJ WKDW mWKHUH PXVW EH $V5REHUWVPDNHVFOHDUWKH&RQIURQWDWLRQ&ODXVHUHTXLUHV µWKH UHTXLVLWH ILQGLQJ RI QHFHVVLW\j ZKLFK LV µFDVH VSHFLILFj LQ RUGHU WR WKDWWKHWULDOFRXUWFRQVLGHUWKHUHOLDELOLW\RISURIIHUHGKHDUVD\ GLVSHQVH ZLWK FRQIURQWDWLRQ LQ RSHQ FRXUWl  )G DW  TXRWLQJ HYLGHQFH RQO\ DIWHU KDYLQJ HVWDEOLVKHG WKDW WKH KHDUVD\ &UDLJ    86 DW   6 &W DW   ,Q VKRUW ZH FRPPLWWHG WKH YHU\ VDPH mHUURUl WKDW WKH PDMRULW\ LGHQWLILHV LQ WKH 2KLR DSSHOODWH FRXUW UXOLQJ LQ WKLV FDVH QDPHO\ ZH YLHZHG &UDLJ jV EDODQFLQJ DSSURDFK DV LQIRUPLQJ RXU UHVROXWLRQ RI WKH 5REHUWV mXQDYDLODELOLW\l LQTXLU\ XQGHU WKH SDUWLFXODU IDFWV EHIRUH XV  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

GHFODUDQW LV XQDYDLODEOH WR WHVWLI\ LQ SHUVRQ  $OWKRXJK HQDFWLQJ WKLV FRQIURQWDWLRQ D IHZ ZHHNV ODWHU GXULQJ 5REHUWVVXJJHVWVWKDWWKHUHDUHH[FHSWLRQVWRWKLVJHQHUDOUXOH %UXPOH\jV WULDO  *LYHQ 5REHUWVj H[SOLFLW VWDWHPHQW RI WKH VHHLGDWQ m$GHPRQVWUDWLRQRIXQDYDLODELOLW\LVQRW OLPLWHGQDWXUHRIDQGHVWDEOLVKHGH[FHSWLRQVWRLWVKROGLQJ DOZD\V UHTXLUHGl  FLWLQJ 'XWWRQ Y (YDQV  86  ,FDQQRWVHHKRZWKH2KLRFRXUWVFRXOGEHYLHZHGHLWKHUDV    SOXUDOLW\RSLQLRQ RWKHU6XSUHPH&RXUWSUHFHGHQWV KDYLQJmDSSOLH>G@DUXOHWKDWFRQWUDGLFWVWKHJRYHUQLQJODZVHW KDYH FOHDUO\ HVWDEOLVKHG WKDW SULRU WHVWLPRQ\ WKH W\SH RI IRUWK LQl 5REHUWV DQG LWV SURJHQ\ RU DV KDYLQJ UHDFKHG D KHDUVD\LQYROYHGLQWKHSUHVHQWFDVHPD\EHDGPLWWHGLQWR FRQFOXVLRQ WKDW LV QRW PHUHO\ HUURQHRXV EXW XQUHDVRQDEOH HYLGHQFH LQ D PDQQHU FRQVLVWHQW ZLWK WKH&RQIURQWDWLRQ :LOOLDPV6&WDW  &ODXVHRQO\XSRQDVKRZLQJRIXQDYDLODELOLW\ 6HH0DQFXVL Y 6WXEEV  86      0DWWR[ Y 8QLWHG ,QGHHG DV LQGLFDWHG HDUOLHU , WKLQN LW LV RSHQ WR VHULRXV 6WDWHV86   VHHDOVR:KLWHY,OOLQRLV TXHVWLRQ ZKHWKHU 5REHUWV DQG WKH RWKHU 6XSUHPH &RXUW 86    m5REHUWVVWDQGVIRUWKHSURSRVLWLRQWKDW GHFLVLRQVLQYROYLQJRXWRIFRXUWVWDWHPHQWVVKRXOGJRYHUQWKH XQDYDLODELOLW\DQDO\VLVLVDQHFHVVDU\SDUWRIWKH&RQIURQWDWLRQ VLWXDWLRQSUHVHQWHGKHUH7KHSURVHFXWLRQLQWKLVFDVHGLGQRW &ODXVH LQTXLU\    ZKHQ WKH FKDOOHQJHG RXWRIFRXUW VHHNWRWDNHKHDUVD\VWDWHPHQWVIURPDGLIIHUHQWSURFHHGLQJRU VWDWHPHQWV ZHUH PDGH LQ WKH FRXUVH RI D SULRU MXGLFLDO FRQWH[WDQGSUHVHQWWKHPDWWULDO5DWKHUWKHFHQWUDOGLVSXWH SURFHHGLQJl  8QLWHG 6WDWHV Y ,QDGL  86    LQWKLVFDVHLVZKHWKHUWKH&RQIURQWDWLRQ&ODXVHLVRIIHQGHG E\WKHPDQQHULQZKLFKWKHSURVHFXWLRQWRRNDQGRIIHUHGWKH WULDO WHVWLPRQ\ RI ZLWQHVV 7RQ\ .LUNOLQ  $V QRWHG WKH  7KH GLVVHQW mEHOLHYH>V@l WKDW ZH mHUU>@ LQ >RXU@ VWULFW 6XSUHPH&RXUWKDVGLVWLQJXLVKHGEHWZHHQLWVOLQHRIFDVHV FRPSDUWPHQWDOL]DWLRQ RI WKH µXQDYDLODELOLW\j DQG µUHOLDELOLW\j SURQJV RI WKH LQFOXGLQJ5REHUWVZKLFKDGGUHVVWKHDGPLVVLELOLW\RIRXWRI WZRSDUW WHVW VHW IRUWK LQ 5REHUWVl 'LVVHQW SRVW DW  ,W LV XQFOHDU WR FRXUWGHFODUDWLRQVDQGLWVWZRGHFLVLRQVLQ&R\DQG&UDLJ XV KRZHYHU KRZ RQH FRXOG UHDG WKH TXRWHG SDVVDJH DV QRW UHTXLULQJ D ZKLFKFRQVLGHUmZKDWLQFRXUWSURFHGXUHVDUHFRQVWLWXWLRQDOO\ VKRZLQJ RI XQDYDLODELOLW\ EHIRUH WXUQLQJ WR WKH LVVXH RI UHOLDELOLW\ 7KH UHTXLUHGWRJXDUDQWHHDGHIHQGDQWjVFRQIURQWDWLRQULJKWRQFH GLVVHQW LV FRUUHFW LQ QRWLQJ WKDW WKH 5REHUWV &RXUW DGGUHVVHG mUHOLDELOLW\l ILUVW VHH  86 DW  EXW LW GLG VR EHFDXVH WKH 2KLR 6XSUHPH &RXUW DZLWQHVVLVWHVWLI\LQJl:KLWH86DW6&W KDG EDVHG LWV GHFLVLRQ RQ WKH UHOLDELOLW\ RI WKH WHVWLPRQ\ DW LVVXH 6HH LG DW DW  m:H WXUQ ILUVW WR WKDW DVSHFW RI FRQIURQWDWLRQ DQDO\VLV GHHPHG GLVSRVLWLYH E\ WKH 6XSUHPH &RXUW RI 2KLR    ZKHWKHU $QLWD ,VDDFVj SULRU ,EHOLHYHWKDW&UDLJLVDWOHDVWDVLQIRUPDWLYHWRWKHLVVXH WHVWLPRQ\    ERUH VXIILFLHQW µLQGLFLD RI UHOLDELOLW\jl  7KXV WKH 6XSUHPH EHIRUHXVDV5REHUWVDQGLWVSURJHQ\DQGWKDWWKLVFDVHOLHVDW &RXUWjV RUGHU RI SUHVHQWDWLRQ LQ 5REHUWV FDQQRW EH LQWHUSUHWHG DV RU QHDU WKH LQWHUVHFWLRQ RI WKHVH WZR OLQHV RI SUHFHGHQW PRGLI\LQJ LQ DQ\ ZD\ WKH FOHDU UXOH HVWDEOLVKHG LQ WKDW FDVH ZKLFK UHTXLUHV WKDW WKH 6WDWH PDNH D VKRZLQJ RI XQDYDLODELOLW\ UHJDUGOHVV RI WKH 3ODLQO\LIWKHSURVHFXWLRQKDGSURGXFHG7RQ\.LUNOLQRQWKH UHOLDELOLW\ RI WKH SURIIHUHG SULRU WHVWLPRQ\ ,I WKLV UXOH HPERGLHV mD SROLF\ ILUVWGD\RI:LOOLH%UXPOH\jVWULDOEXWWKHQSURSRVHGWKDWKLV MXGJPHQWl WKDW OLYH WHVWLPRQ\ LV EHWWHU WKDQ SULRU WHVWLPRQ\ DV WKH GLVVHQW WULDOWHVWLPRQ\EHFDSWXUHGRQYLGHRWDSHDQGSUHVHQWHGLQWKLV FRPSODLQV 'LVVHQW SRVW DW   WKDW SROLF\ MXGJPHQW ZDV PDGH E\ WKH IRUPLQOLHXRIKLVOLYHDSSHDUDQFHEHIRUHWKHMXU\ZHZRXOG 6XSUHPH &RXUW LQ 5REHUWV QRWDQDO\]HWKLVVLWXDWLRQXQGHUWKH6XSUHPH&RXUWjVKHDUVD\  SUHFHGHQWVEXWZRXOGLQVWHDGORRNILUVWWRWKHUXOLQJLQ&UDLJ :H QRWH WKDW WKH GLVVHQW DJUHHV ZLWK RXU FKDUDFWHUL]DWLRQ RI 7RQ\ XQGHUIDUPRUHDQDORJRXVIDFWV7KHDQDO\VLVLVQRGLIIHUHQW .LUNOLQjV YLGHRWDSHG GHSRVLWLRQ DV SULRU WHVWLPRQ\ FRQFHGLQJ DW OHDVW WKDW LQ P\ YLHZZKHUH.LUNOLQGLGQRWJLYHKLVWULDOWHVWLPRQ\ m7RQ\ .LUNOLQ JDYH KLV WHVWLPRQ\ µSULRUj WR WULDO LQ D SXUHO\ WHPSRUDO VHQVHl 'LVVHQW SRVW DW  7KH GLVVHQW GLVDJUHHV ZLWK XV KRZHYHU LQ GXULQJWKHWULDOEXWDIHZZHHNVEHIRUHKDQG,QHLWKHUHYHQW FRQFOXGLQJ WKDW 5REHUWV SURYLGHV WKH UHOHYDQW FRQVWLWXWLRQDO UXOH LQ WKH LW LV WULDO WHVWLPRQ\ ZH DUH FRQVLGHULQJ DQG QRW WHVWLPRQ\ SUHVHQW FDVH GHVSLWH WKDW SUHFHGHQWjV REYLRXV DSSOLFDELOLW\ RQFH RQH JLYHQIRUDQ\RWKHUSXUSRVHDQGZHPXVWDVNZKHWKHUWKHLQ DJUHHV WKDW WKH GHSRVLWLRQ WHVWLPRQ\ ZDV SULRU WHVWLPRQ\  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

DQGQRWE\DQ\VXEVHTXHQWGHYHORSPHQWV,QVKRUWWKHUHLV    m7KH &RQIURQWDWLRQ &ODXVH DQDO\VLV LQ 5REHUWV UHDVRQWREHFDXWLRXVDQGFLUFXPVSHFWLQFRQVLGHULQJZKHWKHU IRFXVHV RQ WKRVH IDFWRUV WKDW FRPH LQWR SOD\ ZKHQ WKH WRLPSRUWHYLGHQWLDU\FRQFHUQVLQWRD&RQIURQWDWLRQ&ODXVH SURVHFXWLRQ VHHNV WR DGPLW WHVWLPRQ\ IURP D SULRU MXGLFLDO DQDO\VLV SURFHHGLQJLQSODFHRIOLYHWHVWLPRQ\DWWULDO,QSDUWLFXODU WKH5REHUWV&RXUWH[DPLQHGWKHUHTXLUHPHQWIRXQGLQDORQJ %\ PHFKDQLFDOO\ DSSO\LQJ 5REHUWVj UXOH JRYHUQLQJ SULRU OLQHRI&RQIURQWDWLRQ&ODXVHFDVHVLQYROYLQJSULRUWHVWLPRQ\ WHVWLPRQ\ JLYHQ LQ D ZKROO\ GLIIHUHQW SURFHHGLQJ DQG E\ WKDWEHIRUHVXFKVWDWHPHQWVFDQEHDGPLWWHGWKHJRYHUQPHQW FRQVWUXLQJ WKDW GHFLVLRQjV XQDYDLODELOLW\ UHTXLUHPHQW DV PXVWGHPRQVWUDWHWKDWWKHGHFODUDQWLVXQDYDLODEOHl  FLWDWLRQ LQYLRODWHWKHPDMRULW\KDVLQP\YLHZIDOOHQLQWRMXVWWKLV RPLWWHG %DUEHUY3DJH 86     m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l  FRQWUDU\WRQRUDQXQUHDVRQDEOHDSSOLFDWLRQRIWKHUHOHYDQW 6XSUHPH &RXUW SUHFHGHQWV  $V 5REHUWV LWVHOI H[SUHVVO\ ,Q WKH SUHVHQW FDVH WKH VWDWH WULDO FRXUW DGPLWWHG 7RQ\jV UHFRJQL]HV WKHUH DUH FLUFXPVWDQFHV LQ ZKLFK m>D@ YLGHRWDSHG GHSRVLWLRQ DW WULDO DIWHU ILQGLQJ WKDW WKH GHPRQVWUDWLRQRIXQDYDLODELOLW\LVQRWUHTXLUHGlDQG UHTXLUHPHQWVRI2KLR&ULP5 ) DQG2KLR5HY&RGH ZKHUHmWKHXWLOLW\RIWULDOFRQIURQWDWLRQ>LV@VRUHPRWHlWKDW † KDGEHHQVDWLVILHG%XWWKHUHTXLUHPHQWVRI2KLR WKH SURVHFXWLRQ QHHG QRW LQFXU WKH EXUGHQ DQG H[SHQVH RI &ULP 5  )  DQG †   DUH QRW LGHQWLFDO WR WKH mSURGXF>LQJ@DVHHPLQJO\DYDLODEOHZLWQHVVl5REHUWV FRQVWLWXWLRQDOUHTXLUHPHQWVHVWDEOLVKHGLQ5REHUWVnPRVW 86DWQ6&WDWQ7KLVLVVXFKDFDVH LPSRUWDQWO\QHLWKHUUHTXLUHVWKHGHSRQHQWWREHmXQDYDLODEOHl ZKHUH %UXPOH\ ZDV JLYHQ D IXOO DQG IDLU RSSRUWXQLW\ WR LQWKHFRQVWLWXWLRQDOVHQVHHVWDEOLVKHGLQ5REHUWVDQG%DUEHU FRQIURQWDQGFURVVH[DPLQH7RQ\.LUNOLQDVKHJDYHKLVWULDO $W PRVW 5XOH  )  SHUPLWV WKH DGPLVVLRQ RI GHSRVLWLRQ WHVWLPRQ\DQGZKHUHWKHMXU\KDGWKHRSSRUWXQLW\WRREVHUYH WHVWLPRQ\ZKHQWKHGHSRQHQWLVRXWRIWKHVWDWH%XWWKLVGRHV .LUNOLQjVGHPHDQRUGXULQJWKLVFRQIURQWDWLRQVRWKDWQRWKLQJ QRWUHOLHYHWKH6WDWHRILWVGXW\WRPDNHDJRRGIDLWKHIIRUWWR RIFRQVWLWXWLRQDOVLJQLILFDQFHZRXOGKDYHEHHQJDLQHGE\UH REWDLQWKHZLWQHVVjVSUHVHQFH 7KH 6XSUHPH &RXUW KDV KHOG WKDW mD ZLWQHVV LV QRW  µXQDYDLODEOHj IRU SXUSRVHV RI    WKH FRQIURQWDWLRQ 2Q D SUDFWLFDO QRWH LI WKH 6WDWH RI 2KLR UHVSRQGV WR WKH JUDQW RI UHTXLUHPHQWXQOHVVWKHSURVHFXWRULDODXWKRULWLHVKDYHPDGHD KDEHDV UHOLHI E\ HOHFWLQJ WR UHWU\ :LOOLH %UXPOH\ RQ WKH DJJUDYDWHG PXUGHU JRRGIDLWKHIIRUWWRREWDLQKLVSUHVHQFHDWWULDOl%DUEHUY FKDUJH ZH KDYH QR UHDVRQ WR EHOLHYH RQ WKH UHFRUG EHIRUH XV WKDW 7RQ\ .LUNOLQ ZLOO EH IRXQG DQG PDGH DYDLODEOH WR WHVWLI\ DW WKLV QHZ WULDO 3DJH 86    ,QIDFWWKH%DUEHU&RXUW .LUNOLQjV XQDYDLODELOLW\ RI FRXUVH ZRXOG SHUPLW WKH DGPLVVLRQ RI KLV FRQVLGHUHGDIDFWSDWWHUQYHU\VLPLODUWRWKHSUHVHQWFDVHDW YLGHRWDSHG WHVWLPRQ\ DW %UXPOH\jV UHWULDO <HW ZH VWLOO ZRXOG QRW EH OHDVW UHJDUGLQJ WKH mXQDYDLODELOLW\l RI WKH GHFODUDQW  ,Q TXLWH EDFN ZKHUH ZH ZHUH DW WKH WLPH RI %UXPOH\jV ILUVW WULDO LQ   %DUEHUWKHKDEHDVSHWLWLRQHUZDVWULHGIRUDUPHGUREEHU\LQ LWVHOI ILYH \HDUV DIWHU WKH DEGXFWLRQ DQG PXUGHU RI %HFN\ .QDSS  2NODKRPD  WKH SULQFLSDO HYLGHQFH DJDLQVW WKH SHWLWLRQHU EHFDXVH RWKHU ZLWQHVVHV ZKRVH WHVWLPRQ\ ZDV QRW SUHVHUYHG RQ YLGHRWDSH PLJKW DOVR EH XQDYDLODEOH RU WKHLU PHPRULHV IDGHG RYHU WKH WZHOYH\HDU FRQVLVWHGRIWKHWUDQVFULEHGSUHOLPLQDU\KHDULQJWHVWLPRQ\RI LQWHULP 7KXV WKHUH LV UHDVRQ WR IHDU WKDW RXU UXOLQJ PLJKW UHVXOW LQ D VWDWH D ZLWQHVV :RRGV WKHQ LQFDUFHUDWHG LQ D IHGHUDO SULVRQ LQ FRXUW SURFHHGLQJ WKDW LV IDU OHVV IDLU DQG UHVWV XSRQ IDU OHVV UHOLDEOH 7H[DV  6HH LG DW   7KH SURVHFXWLRQ RIIHUHG WKLV HYLGHQFH WKDQ WKH LQLWLDO WULDO  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

SUHOLPLQDU\ KHDULQJ WHVWLPRQ\ DW WULDO RQ WKH WKHRU\ WKDW ,IRQHZHUHWRWUDQVODWHWKH&RQIURQWDWLRQ&ODXVHLQWR :RRGVZDVXQDYDLODEOHWRWHVWLI\EHFDXVHRIKLVLQFDUFHUDWLRQ ODQJXDJHLQPRUHFRPPRQXVHWRGD\LWZRXOGUHDG m,Q DQGWKHSHWLWLRQHUREMHFWHG7KHHYLGHQFHZDVDGPLWWHGRYHU DOO FULPLQDO SURVHFXWLRQV WKH DFFXVHG VKDOO HQMR\ WKH WKLVREMHFWLRQ,QVHHNLQJDIHGHUDOZULWRIKDEHDVFRUSXVWKH ULJKWWREHSUHVHQWDQGWRFURVVH[DPLQHWKHZLWQHVVHV SHWLWLRQHU FODLPHG WKDW KLV FRQIURQWDWLRQ ULJKWV KDG EHHQ DJDLQVWKLPl1RWKLQJLQWKLVODQJXDJHRULQLWVWK YLRODWHG E\ WKH DGPLVVLRQ RI WKLV SULRU WHVWLPRQ\ KHDUVD\ FHQWXU\HTXLYDOHQWZRXOGFRQQRWHDSXUSRVHWRFRQWURO EHFDXVH WKH SURVHFXWLRQ KDG QRW GHPRQVWUDWHG WKH WKH VFRSH RI WKH UXOHV RI HYLGHQFH  7KH ODQJXDJH LV XQDYDLODELOLW\RIWKHGHFODUDQW7KHGLVWULFWFRXUWDQGFRXUWRI SDUWLFXODUO\ LOOFKRVHQ LI ZKDW ZDV LQWHQGHG ZDV D DSSHDOVGHQLHGKLVSHWLWLRQ6HHLGDW SURKLELWLRQRQWKHXVHRIDQ\KHDUVD\ 7KH6XSUHPH&RXUWUHYHUVHGKRZHYHUDQGHVWDEOLVKHGWKH 'XWWRQ  86 DW   6 &W DW  +DUODQ s JHQHUDOUXOHIRUGHWHUPLQLQJZKHWKHUDKHDUVD\GHFODUDQWLV FRQFXUULQJLQUHVXOW  XQDYDLODEOH LQ WKH FRQVWLWXWLRQDO VHQVH  ,Q %DUEHU WKH SURVHFXWLRQmPDGHDEVROXWHO\QRHIIRUWWRREWDLQWKHSUHVHQFH ,QGHHG WR IRUJH DQ XQEUHDNDEOH OLQN EHWZHHQ WKH RI :RRGV DW WULDO RWKHU WKDQ WR DVFHUWDLQ WKDW KH ZDV LQ D &RQIURQWDWLRQ&ODXVHDQGWKHODZRIKHDUVD\RUWKHUXOHVRI IHGHUDO SULVRQ RXWVLGH 2NODKRPDl  ,G DW   7KH &RXUW HYLGHQFH ZRXOG XQGHUPLQH WKH mFHQWUDO FRQFHUQl RI WKLV DFNQRZOHGJHG WKDW DW RQH WLPH WKDW VKRZLQJ PD\ KDYH FRQVWLWXWLRQDOSURYLVLRQ QDPHO\mWRHQVXUHWKHUHOLDELOLW\RI GHPRQVWUDWHGWKHXQDYDLODELOLW\RIDSRWHQWLDOZLWQHVV%\WKH WKHHYLGHQFHDJDLQVWDFULPLQDOGHIHQGDQWE\VXEMHFWLQJLWWR ODWH VKRZHYHUWKHmLQFUHDVHGFRRSHUDWLRQEHWZHHQWKH ULJRURXV WHVWLQJ LQ WKH FRQWH[W RI DQ DGYHUVDU\ SURFHHGLQJ 6WDWHV WKHPVHOYHV DQG EHWZHHQ WKH 6WDWHV DQG WKH )HGHUDO EHIRUHWKHWULHURIIDFWl&UDLJ 86DW6&WDW *RYHUQPHQWlLQPDNLQJLQFDUFHUDWHGZLWQHVVHVDYDLODEOHIRU 7KHUXOHVRIHYLGHQFHSHUPLWDYDULHW\RIRXWRIFRXUW WULDOKDGFKDQJHGWKH&RQIURQWDWLRQ&ODXVHDQDO\VLV,G7KH VWDWHPHQWVnH[FLWHGXWWHUDQFHVVWDWHPHQWVRIWKHQH[LVWLQJ H[LVWHQFH RI PHDQV RI REWDLQLQJ DQ LQFDUFHUDWHG ZLWQHVVjV FRQGLWLRQVG\LQJGHFODUDWLRQVDQGFRFRQVSLUDWRUVWDWHPHQWV SUHVHQFHDWWULDOLQDGLIIHUHQWMXULVGLFWLRQSODFHGDQDGGHG GXULQJWKHFRXUVHRIDFRQVSLUDF\WRQDPHEXWDIHZnWREH EXUGHQRQWKHSURVHFXWLRQnQDPHO\WRPDNHDJRRGIDLWK LQWURGXFHGDWWULDOZLWKRXWUHJDUGIRUWKHRSSRUWXQLW\RIWKH HIIRUW WR HPSOR\ WKH H[LVWLQJ PHDQV IRU REWDLQLQJ DQ DFFXVHGWRFRQIURQWRUFURVVH[DPLQHWKHGHFODUDQW<HWLW LQFDUFHUDWHGZLWQHVVjVSUHVHQFH:KHUHWKHSURVHFXWLRQIDLOV FDQKDUGO\EHFODLPHGWKDWVXFKVWDWHPHQWVDUHPRUHUHOLDEOH WR PDNH VXFKDQHIIRUWDVWKH\IDLOHGWRGRLQ%DUEHUWKH WKDQ 7RQ\ .LUNOLQjV WHVWLPRQ\ LQ WKLV FDVH ZKLFK ZDV ZLWQHVV FDQQRW EH GHWHUPLQHG WR EH XQDYDLODEOH LQ WKH VXEMHFWHGWRULJRURXVWHVWLQJLQDQDGYHUVDU\SURFHHGLQJVHHQ FRQVWLWXWLRQDOVHQVHm>6@RIDUDVWKLVUHFRUGUHYHDOVWKHVROH E\WKHWULHURIIDFW/LNHZLVHLI7RQ\.LUNOLQKDGGLHG RU UHDVRQZK\:RRGVZDVQRWSUHVHQWWRWHVWLI\LQSHUVRQZDV HVFDSHG IURP KLV $UL]RQD SULVRQ FHOO DIWHU JLYLQJ KLV EHFDXVHWKH6WDWHGLGQRWDWWHPSWWRVHHNKLVSUHVHQFH7KH YLGHRWDSHGWHVWLPRQ\EXWEHIRUH:LOOLH%UXPOH\jVWULDOWKH ULJKWRIFRQIURQWDWLRQPD\QRWEHGLVSHQVHGZLWKVROLJKWO\l YLGHRWDSHXQTXHVWLRQDEO\ZRXOGKDYHEHHQDGPLVVLEOHDWWULDO ,GDW HPSKDVLVDGGHG  XQGHU WKH UXOHV RI HYLGHQFH HYHQ WKRXJK QRWKLQJ DERXW .LUNOLQjVDEVHQFHZRXOGKDYHPDGHKLVWHVWLPRQ\DQ\PRUH 7RQ\.LUNOLQZDVDYDLODEOHWRWHVWLI\DW%UXPOH\jVWULDODW UHOLDEOH WKDQ LW DOUHDG\ ZDV  LWV UHOLDELOLW\ DIWHU DOO ZDV OHDVWXQGHUWKHUXOHHVWDEOLVKHGLQ%DUEHU2KLRDQG$UL]RQD HQVXUHGE\WKHSURFHGXUHVHPSOR\HGGXULQJWKLVWHVWLPRQ\ KDYHERWKHQDFWHGWKH8QLIRUP$FWWR6HFXUHWKH$WWHQGDQFH RI:LWQHVVHVIURP:LWKRXWD6WDWHLQ&ULPLQDO3URFHHGLQJV VHH2KLR5HY&RGH†   $UL]5HY6WDW††   %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

,QGHHGWKHUHZDVQRWUXHmVXEVWLWXWLRQlDWDOOLQWKLV FDVH WR DQGWKXVDPHDQVH[LVWHGIRUREWDLQLQJ7RQ\jV UDWKHUWKHHYLGHQFHRIIHUHGE\WKHSURVHFXWLRQ DWWULDOZDV SUHVHQFH  0RUHRYHU WKH SURVHFXWLRQ KDG HPSOR\HG WKHVH XVHGIRUWKHYHU\SXUSRVHDQGLQWKHSUHFLVHZD\WKDWERWKRI SURFHGXUHV WR REWDLQ 7RQ\jV SUHVHQFH IRU WKH WULDO RI KLV WKH SDUWLHV FRQWHPSODWHG DV WKH\ H[DPLQHG DQG FURVV EURWKHU'HOPDU7KXVDQ\VWDWHFRXUWILQGLQJWKDW7RQ\ZDV H[DPLQHG7RQ\ .LUNOLQ DQG SUHVHUYHG WKLV WHVWLPRQ\ RQ mXQDYDLODEOHlLQDFRQVWLWXWLRQDOVHQVHZDVFRQWUDU\WRFOHDUO\ YLGHRWDSH HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW7KHVWDWHWULDOFRXUW KHOGWKDWWKHYLGHRWDSHGGHSRVLWLRQZDVDGPLVVLEOHEHFDXVH $FFRUGLQJO\ , ZRXOG KROG WKDW WKLV HYLGHQFH LV H[HPSW 7RQ\ZDVRXWRIWKHVWDWHWKHUHTXLUHPHQWRI2KLR&ULP5 IURPWKHXQDYDLODELOLW\UHTXLUHPHQWDVVHWIRUWKDQGDSSOLHGLQ  )   7KH DFWXDO EDVLV RI WKH WULDO FRXUWjV DGPLVVLELOLW\ 5REHUWV DQG WKH 6XSUHPH &RXUWjV RWKHU mSULRU WHVWLPRQ\l UXOLQJKRZHYHULVDPELJXRXV7KHWULDOFRXUWHLWKHUPDGHLWV GHFLVLRQV,IZHZHUHGHFLGLQJWKHPDWWHUXQGHUWKHODZRI UXOLQJEDVHGH[FOXVLYHO\RQWKHIDFWWKDW7RQ\ZDVRXWRIWKH HYLGHQFH RXU DQDO\VLV ZRXOG EH JRYHUQHG E\ WKH H[SUHVV VWDWH XQGHU WKH WHUPV RI 2KLR &ULP 5  )  RU UXOHG LQ ODQJXDJH RI WKH UHOHYDQW UXOHV VRPH RI ZKLFK UHTXLUH D DGGLWLRQWKDW7RQ\ZDVXQDYDLODEOHLQWKHFRQVWLWXWLRQDOVHQVH GHPRQVWUDWLRQRIZLWQHVVXQDYDLODELOLW\<HWWKH6XSUHPH E\RYHUUXOLQJGHIHQVHFRXQVHOjV6L[WK$PHQGPHQWREMHFWLRQ &RXUW KDV HPSKDWLFDOO\ UHMHFWHG WKH SURSRVLWLRQ WKDW mWKH ,QHLWKHUFDVHKRZHYHUWKHVWDWHWULDOFRXUWjVUXOLQJRQWKH &RQIURQWDWLRQ &ODXVH LV QRWKLQJ PRUH RU OHVV WKDQ D DGPLVVLELOLW\ RI WKH YLGHRWDSHG GHSRVLWLRQ ZDV FOHDUO\ FRGLILFDWLRQ RI WKH UXOHV RI KHDUVD\ DQG WKHLU H[FHSWLRQVl FRQWUDU\WRWKHUXOHRI%DUEHU *UHHQ 86DW 6&WDW  VHHDOVR:KLWH 86DW6&WDW 7KRPDVsFRQFXUULQJLQ 3HUKDSV UHFRJQL]LQJ WKLV WKH VWDWH DSSHOODWH FRXUW SDUWDQGFRQFXUULQJLQMXGJPHQW  VWDWLQJWKDWm>Q@HLWKHUWKH GHWHUPLQHG WKDW D VKRZLQJ RI 7RQ\jV XQDYDLODELOLW\ ZDV ODQJXDJHRIWKH&ODXVHQRUWKHKLVWRULFDOHYLGHQFHDSSHDUVWR XQQHFHVVDU\ JLYHQ WKH JUHDWHU UHOLDELOLW\ RI YLGHRWDSHG VXSSRUWWKHQRWLRQWKDWWKH&RQIURQWDWLRQ&ODXVHZDVLQWHQGHG WHVWLPRQ\  %HFDXVH WKH MXU\ ZDV DEOH WR YLHZ 7RQ\jV WRFRQVWLWXWLRQDOL]HWKHKHDUVD\UXOHDQGLWVH[FHSWLRQVlDQG GHPHDQRU RQ WKH YLGHRWDSH WKH VWDWH DSSHOODWH FRXUW WKDWmWKH&RXUWUHSHDWHGO\KDVGLVDYRZHGDQ\LQWHQWWRFDXVH GHWHUPLQHGWKDWWKLVLQFUHDVHGUHOLDELOLW\nRYHUWUDQVFULEHG WKDWUHVXOWl ,GDKRY:ULJKW 866&W WHVWLPRQ\ n GLG DZD\ ZLWK WKH QHHG IRU D VKRZLQJ RI      m>:@HKDYHEHHQFDUHIXOQRWWRHTXDWH XQDYDLODELOLW\  6XFK D KROGLQJ LV FRQWUDU\ WR FOHDUO\ WKH&RQIURQWDWLRQ&ODXVHjVSURKLELWLRQVZLWKWKHJHQHUDOUXOH HVWDEOLVKHGSUHFHGHQWLQ%DUEHUDQG5REHUWV5REHUWVFOHDUO\ SURKLELWLQJ WKH DGPLVVLRQ RI KHDUVD\ VWDWHPHQWVl   $V UHTXLUHVWKDWFRXUWVWRGHWHUPLQHWKDWDZLWQHVVLVXQDYDLODEOH REVHUYHGE\sXVWLFH+DUODQ EHIRUH GHWHUPLQLQJ ZKHWKHU WKH KHDUVD\ WHVWLPRQ\ LV VXIILFLHQWO\ UHOLDEOH WR VDWLVI\ WKH &RQIURQWDWLRQ &ODXVH GHVSLWH WKH ZLWQHVVjV XQDYDLODELOLW\   m7KH VHFRQG DVSHFW  ,I 5REHUWV PDNHV D mSROLF\ MXGJPHQWl RQ WKH TXHVWLRQ RI EHWWHU >UHOLDELOLW\@ RSHUDWHV RQFH D ZLWQHVV LV VKRZQ WR EH HYLGHQFH DV WKH PDMRULW\ VXJJHVWV LW GRHV 0DMRULW\ 2S DW  Q  LW XQDYDLODEOHl5REHUWV86DW HPSKDVLVDGGHG 7R FRXOG RQO\ EH WKDW SUHOLPLQDU\ KHDULQJ WHVWLPRQ\ JLYHQ RYHU D \HDU EHIRUH GLVSHQVHZLWKWKHILUVWSDUWRI5REHUWVZLWKRXWILUVWPDNLQJ WULDO DQG FDSWXUHG LQ D ZULWWHQ WUDQVFULSW LV QRW HTXLYDOHQW WR OLYH ZLWQHVV VXFK D GHWHUPLQDWLRQ LV FRQWUDU\ WR FOHDUO\ HVWDEOLVKHG WHVWLPRQ\ DW WULDO 7KLV LV D IDU FU\ IURP WKH SROLF\ MXGJPHQW PDGH E\ WKH 6XSUHPH&RXUWSUHFHGHQW0RUHRYHUVXFKDKROGLQJZRXOG PDMRULW\ KHUH n WKDW ZLWQHVV WHVWLPRQ\ SUHVHUYHG RQ YLGHRWDSH IRU WKH VROH DQG H[SUHVV SXUSRVH RI SUHVHQWDWLRQ DW D VRRQIRUWKFRPLQJ WULDO LV FRPSOHWHO\HOLPLQDWH%DUEHUjVUHTXLUHPHQWWKDWSURVHFXWRUV FRQVWLWXWLRQDOO\ mLQIHULRUl WR WKH YHU\ VDPH WHVWLPRQ\ JLYHQ LQ WKH YHU\ PDNHJRRGIDLWKHIIRUWVWRREWDLQWKHSUHVHQFHRIRXWRIVWDWH VDPH FRXUWURRP LQ IURQW RI WKH YHU\ VDPH MXGJH DQG VXEMHFW WR WKH YHU\ ZLWQHVVHV VDPH IDFHWRIDFH FRQIURQWDWLRQ DQG FURVVH[DPLQDWLRQ EXW GLIIHULQJ RQO\ LQ WKDW LW LV YLHZHG mOLYHl E\ WKH MXU\ UDWKHU WKDQ RQ YLGHRWDSH  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

7KHVWDWHDSSHOODWHFRXUWSODFHGJUHDWHPSKDVLVRQWKHIDFW DSSOLFDEOHDVZHOOWR&RQIURQWDWLRQ&ODXVHDQDO\VLVIDYRU WKDWWKHYLGHRWDSHGGHSRVLWLRQDWLVVXHLQWKHSUHVHQWFDVHKDG WKHEHWWHUHYLGHQFH%XWLIWKHGHFODUDQWLVXQDYDLODEOH EHHQ SUHSDUHG VSHFLILFDOO\ IRU XVH DW %UXPOH\jV WULDO DV D QRmEHWWHUlYHUVLRQRIWKHHYLGHQFHH[LVWVDQGWKHIRUPHU VXEVWLWXWH IRU 7RQ\jV OLYH WHVWLPRQ\  $V D UHVXOW WKH WHVWLPRQ\ PD\ EH DGPLWWHG DV D VXEVWLWXWH IRU OLYH YLGHRWDSHG GHSRVLWLRQ FRXOG DGGUHVV PDQ\ RI WKH FRQFHUQV WHVWLPRQ\RQWKHVDPHSRLQW XQGHUO\LQJWKH&RQIURQWDWLRQ&ODXVH WKHZLWQHVV WHVWLILHG XQGHURDWK WKHGHIHQGDQWFRXOGEHSUHVHQWDQGUHSUHVHQWHGE\ ,QDGL  86 DW     6 &W DW  FLWDWLRQ FRXQVHO GHIHQVHFRXQVHOFRXOGFURVVH[DPLQHWKHZLWQHVVLQ RPLWWHG  DPDQQHUVLPLODUWRFURVVH[DPLQDWLRQDWWULDO DQGWKHMXGJH ZDVHYHQWREHSUHVHQWWRUXOHRQREMHFWLRQV$OWKRXJKWKHVH  ,Q VKRUW WKH XQDYDLODELOLW\ UHTXLUHPHQW LV QRWD IDFWRUV GR VXSSRUW WKH VWDWH FRXUWVj FRQFOXVLRQ WKDW WKH FRQVWLWXWLRQDOFRPPDQGLQDQGRILWVHOIEXWLVPHUHO\DPHDQV YLGHRWDSHGGHSRVLWLRQZDVUHOLDEOHWKH\GRQRWDGGUHVVWKH WRDQHQG7KLVHQGRIFRXUVHLVWKHREMHFWLYHVVHUYHGE\WKH &RQIURQWDWLRQ &ODXVHjV mSUHIHUHQFH IRU IDFHWRIDFH &RQIURQWDWLRQ &ODXVH  $V GLVFXVVHG HDUOLHU WKLV FRQIURQWDWLRQDWWULDOl5REHUWV86DW HPSKDVLV FRQVWLWXWLRQDOJXDUDQWHHLGHDOO\HQFRPSDVVHVWHVWLPRQ\JLYHQ DGGHG   7KLV SDUWLFXODU FRQFHUQ UHTXLUHV WKDW GHSRVLWLRQ XQGHU RDWK ZKLOH VWDQGLQJ EHIRUH WKH DFFXVHG D IXOO WHVWLPRQ\EHDGPLWWHGRQO\ZKHQWKHZLWQHVVLVXQDYDLODEOH RSSRUWXQLW\IRUFURVVH[DPLQDWLRQDQGWKHFKDQFHIRUWKHMXU\ WR REVHUYH WKH ZLWQHVVjV GHPHDQRU  ,I WKH SURVHFXWLRQ 7KXVWKHNQRZLQJSUHSDUDWLRQRIDYLGHRWDSHGGHSRVLWLRQ SURSRVHVWRDGPLWHYLGHQFHWKDWLVODFNLQJLQRQHRUPRUHRI DV D VXEVWLWXWH IRU WKH WULDO WHVWLPRQ\ RI D FRQVWLWXWLRQDOO\ WKHVH DUHDVZHLQVLVWWKDWWKLVEHGRQHRQO\DVDPDWWHURI DYDLODEOH ZLWQHVV LV LQFRQVLVWHQW ZLWK WKH YDOXHV RI WKH QHFHVVLW\ZKHUHQREHWWHUHYLGHQFHLVDYDLODEOH,QHDFKRI &RQIURQWDWLRQ &ODXVH GHVSLWH UHGXFHG FRQFHUQV ZLWK WKH 6XSUHPH &RXUW FDVHV LQYROYLQJ SULRU WHVWLPRQ\ WKH UHOLDELOLW\7KLVYLHZLVVXSSRUWHGE\WKH6XSUHPH&RXUWjV SURVHFXWLRQjVHYLGHQFHZDVGHILFLHQWLQRQHRUPRUHRIWKHVH VXPPDU\RIWKHSXUSRVHVRIWKH&RQIURQWDWLRQ&ODXVH UHVSHFWVnLQSDUWLFXODUWKH MXU\ ZDVXQDEOHWRDVVHVVWKH GHPHDQRU RI WKH ZLWQHVV RQ WKH VWDQG ZKLOH PDNLQJ WKH 7KHSULPDU\REMHFWRIWKHFRQVWLWXWLRQDOSURYLVLRQLQ VWDWHPHQWVDWLVVXHDQGLQVRPHFDVHVWKHRSSRUWXQLW\IRU TXHVWLRQZDVWRSUHYHQWGHSRVLWLRQVRUH[SDUWHDIILGDYLWV FURVVH[DPLQDWLRQ ZDV GLPLQLVKHG n DQG VR WKH &RXUW VXFKDVZHUHVRPHWLPHVDGPLWWHGLQFLYLOFDVHVEHLQJ LQVLVWHGXSRQDVKRZLQJWKDWWKLVWUXO\ZDVWKHEHVWDYDLODEOH XVHG DJDLQVW WKH SULVRQHU LQ OLHX RI D SHUVRQDO HYLGHQFH H[DPLQDWLRQ DQG FURVVH[DPLQDWLRQ RI WKH ZLWQHVV LQ ZKLFKWKHDFFXVHGKDVDQRSSRUWXQLW\QRWRQO\RIWHVWLQJ +HUHE\FRQWUDVWWKHHYLGHQFHRIIHUHGE\WKHSURVHFXWLRQ WKHUHFROOHFWLRQDQGVLIWLQJWKHFRQVFLHQFHRIWKHZLWQHVV ZDVQRWmLQIHULRUlDWOHDVWQRWLQDQ\VHQVHHQFRPSDVVHGE\ EXWRIFRPSHOOLQJKLPWRVWDQGIDFHWRIDFHZLWKWKHMXU\ WKH &RQIURQWDWLRQ &ODXVH  $OO RI WKH REMHFWV RI WKLV LQ RUGHU WKDW WKH\ PD\ ORRN DW KLP DQG MXGJH E\ KLV FRQVWLWXWLRQDO JXDUDQWHH n RDWK FURVVH[DPLQDWLRQ GHPHDQRUXSRQWKHVWDQGDQGWKHPDQQHULQZKLFK KH RSSRUWXQLW\ WR REVHUYH GHPHDQRU n ZHUH IXOO\ DFKLHYHG JLYHVKLVWHVWLPRQ\ZKHWKHUKHLVZRUWK\RIEHOLHI %UXPOH\ ZDV DIIRUGHG mDOO WKDW WKH 6L[WK $PHQGPHQW GHPDQGV µVXEVWDQWLDOFRPSOLDQFHZLWKWKHSXUSRVHVEHKLQG 8QLWHG 6WDWHV Y 0DWWR[  86       $ WKHFRQIURQWDWLRQUHTXLUHPHQWjl5REHUWV86DW  YLGHRWDSHGGHSRQHQWPD\EHFURVVH[DPLQHGEXWWKHFULPLQDO 6&WDW IRRWQRWHDQGFLWDWLRQRPLWWHG 7KXVWKHUH GHIHQGDQWLVQRQHWKHOHVVVXEMHFWWRWULDOE\GHSRVLWLRQnQRW ZDVQRQHHGIRUWKH2KLRFRXUWVWRLQVLVWWKDWWKHSURVHFXWLRQ DVDPDWWHURIQHFHVVLW\DVUHTXLUHGE\5REHUWVEXWUDWKHUDV SURGXFHDmEHWWHUlIRUPRIHYLGHQFHDWWULDOLIDWDOOSRVVLEOH  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

7KHUH LV GRXEWOHVV UHDVRQ IRU VD\LQJ WKDW WKH DFFXVHG DUHVXOWRIWKH6WDWHjVFKRLFHWRSURFHHGLQWKLVPDQQHUIRUWKH VKRXOGQHYHUORVHWKHEHQHILWRIDQ\RIWKHVHVDIHJXDUGV VDNHRIFRQYHQLHQFHDQGFRVWVDYLQJV7KHMXU\PD\EHDEOH HYHQE\WKHGHDWKRIWKHZLWQHVV DQGWKDWLIQRWHVRIKLV WRJDXJHWKHZLWQHVVjVGHPHDQRUVHFRQGKDQGRQDWHOHYLVLRQ WHVWLPRQ\DUHSHUPLWWHGWREHUHDGKHLVGHSULYHGRIWKH PRQLWRUEXWWKHZLWQHVVLVQRWIRUFHGmWRVWDQGIDFHWRIDFH DGYDQWDJHRIWKDWSHUVRQDOSUHVHQFHRIWKHZLWQHVVEHIRUH ZLWKWKHMXU\l7KXVWKHVWDWHDSSHOODWHFRXUWjVUHOLDQFHRQ WKHMXU\ZKLFKWKHODZKDVGHVLJQHGIRUKLVSURWHFWLRQ WKH 6WDWHjV SXUSRVHIXO SUHSDUDWLRQ RI WKH YLGHRWDSHG %XWJHQHUDOUXOHVRIODZRIWKLVNLQGKRZHYHUEHQHILFHQW GHSRVLWLRQ DFWXDOO\ VXSSRUWV WKH FRQFOXVLRQ WKDW WKH VWDWH LQ WKHLU RSHUDWLRQ DQG YDOXDEOH WR WKH DFFXVHG PXVW FRXUWjVGHFLVLRQZDVFRQWUDU\WRHVWDEOLVKHG6XSUHPH&RXUW RFFDVLRQDOO\JLYHZD\WRFRQVLGHUDWLRQVRISXEOLFSROLF\ SUHFHGHQW DQGWKHQHFHVVLWLHVRIWKHFDVH7RVD\WKDWDFULPLQDO DIWHUKDYLQJRQFHEHHQFRQYLFWHGE\WKHWHVWLPRQ\RID *LYHQ WKH 6XSUHPH &RXUWjV UHILQHPHQW RI KDEHDV ODZ LQ FHUWDLQZLWQHVVVKRXOGJRVFRWIUHHVLPSO\EHFDXVHGHDWK :LOOLDPVY7D\ORUWKHQZHDUHSHUVXDGHGWKDWWKHSUHVHQW KDVFORVHGWKHPRXWKRIWKDWZLWQHVVZRXOGEHFDUU\LQJ FDVHLVDSSURSULDWHO\DQDO\]HGXQGHUWKHmFRQWUDU\WRlSURQJ KLVFRQVWLWXWLRQDOSURWHFWLRQWRDQXQZDUUDQWDEOHH[WHQW RI  86& †  G   $W RUDO DUJXPHQW KRZHYHU 7KH ODZ LQ LWV ZLVGRP GHFODUHV WKDW WKH ULJKWV RI WKH %UXPOH\jVFRXQVHODSSDUHQWO\UHO\LQJRQWKHGLVWULFWFRXUWjV SXEOLF VKDOO QRW EH ZKROO\ VDFULILFHG LQ RUGHU WKDW DQ DQDO\VLV XQGHU WKH mXQUHDVRQDEOH DSSOLFDWLRQl SURQJ RI LQFLGHQWDOEHQHILWPD\EHSUHVHUYHGWRWKHDFFXVHG † G FRQFHGHGWKDWWKHVWDWHFRXUWVjGHFLVLRQVLQWKLV

   FDVH ZHUH QRW FRQWUDU\ WR HVWDEOLVKHG 6XSUHPH &RXUW 7KH VXEVWDQFH RI WKH FRQVWLWXWLRQDO SURWHFWLRQ LV SUHFHGHQW%HFDXVHRIWKLVFRQFHVVLRQDWRUDODUJXPHQWZH SUHVHUYHGWRWKHSULVRQHULQWKHDGYDQWDJHKHKDVRQFH DUHUHOXFWDQWWRKROGVLPSO\WKDWWKHVWDWHFRXUWVjGHFLVLRQV KDGRIVHHLQJWKHZLWQHVVIDFHWRIDFHDQGRIVXEMHFWLQJ ZHUHFRQWUDU\WRFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW KLPWRWKHRUGHDORIDFURVVH[DPLQDWLRQ 7KXVZHKROGLQWKHDOWHUQDWLYHWKDWDQDO\]HGXQGHUWKHRWKHU SURQJ RI †  D  WKH VWDWH FRXUWVj DGPLVVLRQ RI 7RQ\ 0DWWR[86DW6&WDW ,QDGLPDNHV .LUNOLQj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mFRQWUDU\ WRl DQG mXQUHDVRQDEOH DSSOLFDWLRQ RIl SURQJV RI †  G  PLJKW EH VLJQLILFDQFHRILWVRZQEXWLVLQWHQGHGWR UHSODFHOLYH UHDG WR VXJJHVW WKDW D VWDWH FRXUW GHFLVLRQ FDQQRW UXQ DIRXO RI ERWK SURQJV WHVWLPRQ\  ,I WKH GHFODUDQW LV DYDLODEOH DQG WKH VDPH :LOOLDPV FOHDUO\ KROGV WKDW D VWDWH FRXUW GHFLVLRQ FDQ LQGHHG UXQ DIRXO RI LQIRUPDWLRQFDQEHSUHVHQWHGWRWKHWULHURIIDFWLQWKH ERWK 6HH :LOOLDPV   86 DW   m>7KH 9LUJLQLD 6XSUHPH &RXUWjV@ IRUPRIOLYHWHVWLPRQ\ZLWKIXOOFURVVH[DPLQDWLRQDQG DQDO\VLV LQ WKLV UHVSHFW ZDV WKXV QRW RQO\ µFRQWUDU\ WRj EXW DOVR    DQ

WKHRSSRUWXQLW\WRYLHZWKHGHPHDQRURIWKHGHFODUDQW µXQUHDVRQDEOH DSSOLFDWLRQ RIj WKH FOHDU ODZ DV HVWDEOLVKHG E\ WKLV &RXUWl LG DW  2j&RQQRU s FRQFXUULQJ m, EHOLHYH WKDW WKH &RXUWjV WKHUH LV OLWWOH MXVWLILFDWLRQ IRU UHO\LQJ RQ WKH ZHDNHU GLVFXVVLRQ    LV FRUUHFW DQG WKDW LW GHPRQVWUDWHV    WKDW WKH 9LUJLQLD YHUVLRQ:KHQWZRYHUVLRQVRIWKHVDPHHYLGHQFHDUH 6XSUHPH &RXUWjV GHFLVLRQ LQ :LOOLDPVj FDVH HYHQ XQGHU WKH LQWHUSUHWDWLRQ DYDLODEOHORQJVWDQGLQJSULQFLSOHVRIWKHODZRIKHDUVD\ RI †  G  , KDYH VHW IRUWK     ZDV ERWK FRQWUDU\ WR DQG LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI RXU SUHFHGHQWl   %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

DQG WKH VWDWH FRXUWV LQ WKH SUHVHQW FDVH ODFNHG D ZHLJKW\ +RZHYHUXSRQH[DPLQLQJWKH6XSUHPH&RXUWSUHFHGHQWV HQRXJKUHDVRQIRUGHSDUWLQJIURPWKLVJHQHUDODSSURDFK7KH LQYROYLQJmSULRUWHVWLPRQ\l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mD FDVH    6 &W      :HVW Y VSHFLILFILQGLQJRIQHFHVVLW\lEDVHGRQWKHHPRWLRQDOZHOO /RXLVLDQD   86     6 &W   EHLQJRIWKHFKLOGZLWQHVVHV6HHLGDW VHHDOVRLGDW   0RWHVY8QLWHG6WDWHV866  m:H    FRQFOXGH    WKDW D 6WDWHjV LQWHUHVW LQ WKH &W        $V REVHUYHG LQ %DUEHU m>D@ SK\VLFDODQGSV\FKRORJLFDOZHOOEHLQJRIFKLOGDEXVHYLFWLPV SUHOLPLQDU\ KHDULQJ LV RUGLQDULO\ D PXFK OHVV VHDUFKLQJ PD\EHVXIILFLHQWO\LPSRUWDQWWRRXWZHLJKDWOHDVWLQVRPH H[SORUDWLRQ LQWR WKH PHULWV RI D FDVH WKDQ D WULDO VLPSO\ FDVHV D GHIHQGDQWjV ULJKW WR IDFH KLV RU KHU DFFXVHUV LQ EHFDXVHLWVIXQFWLRQLVWKHPRUHOLPLWHGRQHRIGHWHUPLQLQJ FRXUWl &UDLJFOHDUO\FRQWHPSODWHGWKDWWKLVH[FHSWLRQWRWKH ZKHWKHUSUREDEOHFDXVHH[LVWVWRKROGWKHDFFXVHGIRUWULDOl JHQHUDO UXOH ZRXOG EH OLPLWHG WR RQO\ WKRVH FDVHV mZKHUH %DUEHU 86DW6&WDW7KHUHPDLQLQJ GHQLDO RI    FRQIURQWDWLRQ LV QHFHVVDU\ WR IXUWKHU DQ mSULRUWHVWLPRQ\lSUHFHGHQWVLQYROYHGWHVWLPRQ\JLYHQDWWKH LPSRUWDQWSXEOLFSROLF\DQGZKHUHWKHUHOLDELOLW\RIWKH GHIHQGDQWjVSULRUFULPLQDOWULDOZKHUHWKHZLWQHVVLQTXHVWLRQ WHVWLPRQ\LVRWKHUZLVHDVVXUHGl,GDW HPSKDVLVDGGHG  KDGHLWKHUWDNHQXSUHVLGHQFHLQDIRUHLJQFRXQWU\EH\RQGWKH UHDFK RI WKH SURVHFXWLQJ VWDWH VHH 0DQFXVL Y 6WXEEV  7KXV&UDLJUHTXLUHVWKDWFRXUWVFRQVLGHUWKH6WDWHjVLQWHUHVW 86    6 &W      RU KDG LQDYRLGLQJFRQIURQWDWLRQVHSDUDWHO\IURPWKHUHOLDELOLW\RIWKH GLHGVHH0DWWR[86DW6&WDWE\WKH HYLGHQFHDWLVVXH DPHUHILQGLQJWKDWHYLGHQFHLVUHOLDEOHLV WLPHRIWKHGHIHQGDQWjVUHWULDO LQVXIILFLHQWWRRXWZHLJKDGHIHQGDQWjVFRQIURQWDWLRQULJKWVLI WKH GHQLDO RI FRQIURQWDWLRQ LV QRW QHFHVVDU\ WR IXUWKHU DQ 9LHZHGLQWKLVFRQWH[WLWLVFOHDUWKDWWKHUHTXLUHPHQWRI LPSRUWDQW SXEOLF SROLF\   ,Q &UDLJ WKH LPSRUWDQW SXEOLF XQDYDLODELOLW\ KDV EHHQ DSSOLHG LQ WKHVH FDVHV DV D UXOH RI mQHFHVVLW\lWRHQVXUHWKDWWKHSURVHFXWLRQUHOLHVRQmLQIHULRUl HYLGHQFH RQO\ ZKHUH WKH mEHWWHUl IRUP RI HYLGHQFH LV QRW  UHDVRQDEO\ REWDLQDEOH DQG RQO\ ZKHUH WKH mULJKW RI FURVV :H QRWH WKDW WKH VWDWH DSSHOODWH FRXUW GLG QRW UHO\ RQ &UDLJ LQ H[DPLQDWLRQ LQLWLDOO\ DIIRUGHG >GXULQJ WKH ZLWQHVVjV SULRU GLVSHQVLQJ ZLWK WKH XQDYDLODELOLW\ DQDO\VLV UHTXLUHG E\ 5REHUWV WHVWLPRQ\@SURYLGHVVXEVWDQWLDOFRPSOLDQFHZLWKWKHSXUSRVHV EHKLQGWKHFRQIURQWDWLRQUHTXLUHPHQWl%DUEHU 86DW 7KH GLVVHQW DUJXHV WKDW XQGHU &UDLJ ZKHUH mWKH FRUH FRQVWLWXWLRQDO 6&WDW7KXVXSRQHQXPHUDWLQJWKHYDULRXV JXDUDQWHH RI FRQIURQWDWLRQ LV QRW WKUHDWHQHGl mD OHVVHU DOEHLW VWLOO LPSRUWDQW LQWHUHVW ZLOO VXIILFH WR WLS WKH EDODQFH LQ IDYRU RI    REMHFWVVHUYHGE\WKH&RQIURQWDWLRQ&ODXVHWKH0DWWR[&RXUW DGPLVVLELOLW\l 'LVVHQW SRVW DW  :H DUH XQDEOH KRZHYHU WR VTXDUH WKHQH[SODLQHG WKLV LQWHUSUHWDWLRQ RI &UDLJ ZLWK WKH FOHDU LPSRUW RI WKDW GHFLVLRQ n QDPHO\ WKDW GHYLDWLRQ IURP WKH &RQIURQWDWLRQ &ODXVH LV MXVWLILHG RQO\ ZKHUH WKHUH LV ERWK D VXIILFLHQWO\ LPSRUWDQW VWDWH LQWHUHVW DQG D VKRZLQJ  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

VHHNVWRDGPLWWHVWLPRQ\IURPDSULRUMXGLFLDOSURFHHGLQJ LQWHUHVWZDVRIFRXUVHmWKHSURWHFWLRQRIPLQRUYLFWLPVRI LQ SODFH RI OLYH WHVWLPRQ\ DW WULDO  ,Q SDUWLFXODU WKH VH[ FULPHV IURP IXUWKHU WUDXPD DQG HPEDUUDVVPHQWl DQ 5REHUWV&RXUWH[DPLQHGWKHUHTXLUHPHQWIRXQGLQDORQJ LQWHUHVWZKLFKWKH6XSUHPH&RXUWKDGSUHYLRXVO\UHFRJQL]HG OLQH RI &RQIURQWDWLRQ &ODXVH FDVHV LQYROYLQJ SULRU DVmFRPSHOOLQJl,GDW TXRWLQJ*OREH1HZVSDSHU&RY WHVWLPRQ\WKDWEHIRUHVXFKVWDWHPHQWVFDQEHDGPLWWHG 6XSHULRU&RXUW86    ,QFRQWUDVWWKH WKHJRYHUQPHQWPXVWGHPRQVWUDWHWKDWWKHGHFODUDQWLV 6WDWHjVLQWHUHVWVLQWKHSUHVHQWFDVHDUHQRWFRPSDUDEOHWRWKH XQDYDLODEOH$OORIWKHFDVHVFLWHGLQ5REHUWVIRUWKLV LQWHUHVWDWLVVXHLQ&UDLJ,QKROGLQJWKDWWKH6WDWHZDVQRW mXQDYDLODELOLW\ UXOHl FRQFHUQ SULRU WHVWLPRQ\  ,Q UHTXLUHGWRGHPRQVWUDWH7RQ\.LUNOLQjVXQDYDLODELOLW\EHIRUH SDUWLFXODU WKH &RXUW IRFXVHG RQ WZR FDVHV    WKDW FRQVLGHULQJ WKH UHOLDELOLW\ RI KLV YLGHRWDSHG WHVWLPRQ\ WKH GLUHFWO\ mH[SORUHG WKH LVVXH RI FRQVWLWXWLRQDO VWDWHFRXUWVDOORZHGWKH6WDWHjVDGPLQLVWUDWLYHFRQYHQLHQFH XQDYDLODELOLW\l  %RWK FDVHV VSHFLILFDOO\ OLPLWHG WKH DQG EXGJHWDU\ FRQFHUQV WR RXWZHLJK %UXPOH\jV 6L[WK XQDYDLODELOLW\UHTXLUHPHQWWRSULRUWHVWLPRQ\ $PHQGPHQWULJKWV 7KXVWKHVWDWHFRXUWVj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mWKH DVVXUDQFHV RI UHOLDELOLW\l ZHUH mIDU JUHDWHUl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jVWULDOWKHGLVSRVLWLYHTXHVWLRQLVZKHWKHU WKH SURIIHUHG HYLGHQFH FRXQWV DV mSULRU WHVWLPRQ\l XQGHU  0RUHRYHU LW VKRXOG EH DGGHG WKDW LW ZLOO DOZD\V EH PRUH WKHVH SUHFHGHQWV  7KH PDMRULW\ VR FRQFOXGHV ZLWK QR FRQYHQLHQW DQG OHVV H[SHQVLYH IRU WKH 6WDWH WR YLGHRWDSH WKH WHVWLPRQ\ RI GLVFXVVLRQRIWKHPDWWHU$QGRIFRXUVH7RQ\.LUNOLQJDYH DQ LQFDUFHUDWHG NH\ ZLWQHVV WKDQ LW ZLOO EH IRU WKH 6WDWH WR SURGXFH WKH

KLV WHVWLPRQ\ mSULRUl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mIRUPHUWHVWLPRQ\lH[FHSWLRQWRWKHUXOHDJDLQVWKHDUVD\ZLWK 6L[WK $PHQGPHQW ULJKWV RI D FULPLQDO GHIHQGDQW GHVSLWH WKH 6WDWHjV

LWVDWWHQGDQWUHTXLUHPHQWRIXQDYDLODELOLW\6HH)HG5(YLG DELOLW\ WR VHFXUH WKH DWWHQGDQFH RI WKDW ZLWQHVV DW WULDO WKHQ VLPLODU FRQVLGHUDWLRQV ZRXOG SHUPLW WKH DGPLVVLELOLW\ RI WKH UHOLDEOH YLGHRWDSHG  E   WHVWLPRQ\ RI DQ LQVWDWH LQFDUFHUDWHG ZLWQHVV ,I WKH RQO\ IDFWRU WR EH FRQVLGHUHG LV WKH UHOLDELOLW\ RI WKH WHVWLPRQ\ WKHQ ZKDW GLIIHUHQFH GRHV LW PDNH ZKHWKHU WKH ZLWQHVV LV LQFDUFHUDWHG LQ $UL]RQD RU 0DQVILHOG 2KLR"  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

,QVKRUWZHPXVWDSSO\&UDLJQDUURZO\IRUWKHVDPHUHDVRQ UHTXLUH WKH SURVHFXWLRQ WR SURGXFH D VHHPLQJO\ DYDLODEOH ZH PXVW DSSO\ 5REHUWV EURDGO\ n LH LQ RUGHU WR UHVSHFW ZLWQHVVl5REHUWV86DWQ6&WDWQ m>W@KHFHQWUDOFRQFHUQRIWKH&RQIURQWDWLRQ&ODXVHlZKLFKWKH ,QRWKHUFDVHVPRUHRYHUWKH&RXUWKDVGLVSHQVHGZLWKWKH 6XSUHPH&RXUWKDVLGHQWLILHGDVmHQVXU>LQJ@WKHUHOLDELOLW\RI HOHPHQWRIXQDYDLODELOLW\DVDSUHUHTXLVLWHWRWKHLQWURGXFWLRQ WKHHYLGHQFHDJDLQVWDFULPLQDOGHIHQGDQWE\VXEMHFWLQJLWWR RIRXWRIFRXUWVWDWHPHQWV6HHHJ:KLWH86DW ULJRURXV WHVWLQJ LQ WKH FRQWH[W RI DQ DGYHUVDU\ SURFHHGLQJ 6&WDW ,QDGL86DW 6 EHIRUHWKHWULHURIIDFWl&UDLJ 86DW HPSKDVLV &WDW DGGHG   &UDLJ VWDQGV IRU WKH SURSRVLWLRQ WKDW D FULPLQDO GHIHQGDQWjV6L[WK$PHQGPHQWULJKWWRFRQIURQWDWLRQEHIRUH 7KXVZKHQVSHFLILFDOO\FDOOHGXSRQLQ,QDGLWRFODULI\WKH WKHWULHURIIDFWLVRXWZHLJKHGLQVRPHFDVHVE\DFRPSHOOLQJ VFRSH RI WKH XQDYDLODELOLW\ UHTXLUHPHQW WKH &RXUW LPSRUWDQWVWDWHLQWHUHVWFRPSDUDEOHWRWKH6WDWHjVLQWHUHVWLQ HPSKDWLFDOO\ UHMHFWHG D SURSRVHG UHDGLQJ RI 5REHUWV DV SURWHFWLQJ WKH YLFWLPV RI FKLOG DEXVH IURP IXUWKHU LQMXU\ KROGLQJ WKDW mQR RXWRIFRXUW VWDWHPHQW >LV@ DGPLVVLEOH &UDLJFDQQRWUHDVRQDEO\EHUHDGWRVWDQGIRUWKHSURSRVLWLRQ ZLWKRXWDVKRZLQJRIXQDYDLODELOLW\l,QDGL86DW  WKDWWKH6WDWHjVLQWHUHVWLQFRQVHUYLQJLWVUHVRXUFHVLQIHORQ\ 6&WDW7KH&RXUWH[SODLQHG FDVHV RXWZHLJKV D GHIHQGDQWj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jV FRQYHQLHQFH IRU WKH &RQVWLWXWLRQjV RIWKHUHODWLRQVKLSEHWZHHQWKH&RQIURQWDWLRQ&ODXVHDQG UHTXLUHPHQW RI D VKRZLQJ RI QHFHVVLW\ EDVHG XSRQ KHDUVD\m7KH&RXUWKDVQRWVRXJKWWRµPDSRXWDWKHRU\ XQDYDLODELOLW\ RI WKH &RQIURQWDWLRQ &ODXVH WKDW ZRXOG GHWHUPLQH WKH YDOLGLW\RIDOOKHDUVD\mH[FHSWLRQVljl7KH&RXUWLQ  7KH$GPLVVLRQRIWKH9LGHRWDSHG'HSRVLWLRQ:DV 5REHUWV UHPDLQHG m>F@RQYLQFHG WKDW µQR UXOH ZLOO 1RW+DUPOHVV(UURU SHUIHFWO\UHVROYHDOOSRVVLEOHSUREOHPVjlDQGUHMHFWHGWKH mLQYLWDWLRQWRRYHUUXOHDQHDUFHQWXU\RIMXULVSUXGHQFHl D 6WDQGDUGRI5HYLHZ LQ RUGHU WR FUHDWH VXFK D UXOH  ,Q DGGLWLRQ WKH &RXUW VSHFLILFDOO\QRWHGWKDWDmGHPRQVWUDWLRQRIXQDYDLODELOLW\ +DEHDV UHOLHI LV RQO\ DSSURSULDWH ZKHQ WKH DGPLVVLRQ RI LVQRWDOZD\VUHTXLUHGl,QOLJKWRIWKHVHOLPLWLQJ FRQVWLWXWLRQDOO\LQDGPLVVLEOHHYLGHQFHZDVQRWKDUPOHVVHUURU VWDWHPHQWV 5REHUWV VKRXOG QRW EH UHDG DV DQ DEVWUDFW 7RFRQFOXGHWKDWWKHDGPLVVLRQZDVQRWKDUPOHVVZHPXVW DQVZHUWRTXHVWLRQVQRWSUHVHQWHGLQWKDWFDVHEXWUDWKHU GHWHUPLQH WKDW WKH VWDWHFRXUW HUURU KDG D VXEVWDQWLDO DQG DV D UHVROXWLRQ RI WKH LVVXH WKH &RXUW VDLG LW ZDV LQMXULRXVHIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKHMXU\jVYHUGLFW H[DPLQLQJ   mWKH FRQVWLWXWLRQDO SURSULHW\ RI WKH +LOOY%ULJDQR )G WK&LU FHUW LQWURGXFWLRQ LQ HYLGHQFH RI WKH SUHOLPLQDU\ KHDULQJ GHQLHG 86 *LOOLDPY0LWFKHOO )G   WHVWLPRQ\RIDZLWQHVVQRWSURGXFHGDWWKHGHIHQGDQWjV WK&LU FHUWGHQLHG86   DSSO\LQJ VXEVHTXHQWVWDWHFULPLQDOWULDOl KDUPOHVVHUURUDQDO\VLVRI%UHFKWY$EUDKDPVRQ86      7KH&RQIURQWDWLRQ&ODXVHDQDO\VLVLQ5REHUWVIRFXVHV RQWKRVHIDFWRUVWKDWFRPHLQWRSOD\ZKHQWKHSURVHFXWLRQ  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

&ODXVH6HH0DU\ODQGY&UDLJVXSUD &R\Y,RZDVXSUD E $QDO\VLV 7KH &RXUW KDV H[SODLQHG WKDW WKHVH WZR OLQHV RI DXWKRULW\ LQYROYH mTXLWH VHSDUDWHl LVVXHV DQG LPSRVH GLVWLQFW $GRSWLQJ WKH PDJLVWUDWH MXGJHjV UHSRUW DQG UHTXLUHPHQWV6HH:KLWH86DW6&WDW UHFRPPHQGDWLRQ WKH GLVWULFW FRXUW FRQFOXGHG WKDW WKH 7KHPDMRULW\VLPSO\DVVXPHVZLWKRXWGLVFXVVLRQWKDWWKH DGPLVVLRQ RI WKH YLGHRWDSHG GHSRVLWLRQ ZDV QRW KDUPOHVV SUHVHQWFDVHLVFRQWUROOHGE\WKH5REHUWVmRXWRIFRXUWlOLQH HUURUDWOHDVWZLWKUHJDUGWR%UXPOH\jVFRPSOLFLW\WRFRPPLW RIGHFLVLRQV)RUWKHPRPHQW,WRRZLOOSURFHHGXQGHUWKLV DJJUDYDWHG PXUGHU FRQYLFWLRQ  7KH PDJLVWUDWH MXGJH DVVXPSWLRQDOWKRXJK,ZLOOUHWXUQWR DQGTXHVWLRQ LWODWHU FRQFOXGHG WKDW WKHUH ZDV VXIILFLHQW HYLGHQFH ZLWKRXW WKH YLGHRWDSHG GHSRVLWLRQ WR FRQYLFW %UXPOH\ RI NLGQDSLQJ 8QGHUWKHIDFWVSUHVHQWHGLQ5REHUWVZKHUHWKHHYLGHQFH EHFDXVH WKH WHVWLPRQ\ RI 'DYLV DGHTXDWHO\ VHW IRUWK WKH RIIHUHGDJDLQVWWKHDFFXVHGZDVWKHWUDQVFULSWRIDZLWQHVVjV HOHPHQWVRIWKHNLGQDSLQJFKDUJH+RZHYHUWKHPDJLVWUDWH SUHOLPLQDU\ KHDULQJ WHVWLPRQ\ WKH &RXUW KHOG WKDW mWKH MXGJHFRQFOXGHGWKDWm>Z@LWKRXW7RQ\.LUNOLQjVWHVWLPRQ\D SURVHFXWLRQ PXVW HLWKHU SURGXFH RU GHPRQVWUDWH WKH UHDVRQDEOHMXU\FRXOGQRWFRQYLFW%UXPOH\RIFRPSOLFLW\WR XQDYDLODELOLW\RIWKHGHFODUDQWZKRVHVWDWHPHQWLWZLVKHVWR FRPPLWDJJUDYDWHGPXUGHUls$DW7KLVFRQFOXVLRQ XVHDJDLQVWWKHGHIHQGDQWl5REHUWV86DW6 ZDVEDVHGRQWKHIROORZLQJFRQVLGHUDWLRQV &WDW$VWKHPDMRULW\DFNQRZOHGJHVKRZHYHU5REHUWV JRHVRQWRH[SODLQWKDWm>D@GHPRQVWUDWLRQRIXQDYDLODELOLW\ 7RQ\.LUNOLQZDVWKHRQO\ZLWQHVVWRFRPHIRUZDUGWKDW LVQRWDOZD\VUHTXLUHGl86DWQ6&WDW REVHUYHG %UXPOH\ JLYH WKH ZHDSRQ XVHG WR PXUGHU  Q HPSKDVLV DGGHG   1HYHUWKHOHVV WKH PDMRULW\ %HFN\.QDSSWR'HOPDU.LUNOLQ+HZDVDOVRWKHRQO\ FKDUDFWHUL]HV WKH SUHVHQW FDVH OLNH 5REHUWV DV LQYROYLQJ ZLWQHVV>ZKR@KHDUG%UXPOH\GLUHFW'HOPDU.LUNOLQWR mSULRUWHVWLPRQ\lVRWKDWWKHUHTXLUHPHQWRIXQDYDLODELOLW\ mZDVWHKHUl:LWKRXWWKLVFUXFLDOWHVWLPRQ\QRHYLGHQFH DSSOLHVZLWKIXOOIRUFHKHUH%HFDXVHWKH2KLRDSSHOODWHFRXUW H[LVWHGZKLFKZRXOGKDYHVKRZQWKDW%UXPOH\VROLFLWHG UXOHGWKDWWKHSURVHFXWLRQZDVmQRWUHTXLUHGWRGHPRQVWUDWH RU DLGHG RU DEHWWHG 'HOPDU .LUNOLQ LQ WKH PXUGHU  ,W WKH µXQDYDLODELOLW\j RI >7RQ\ .LUNOLQ@ DV WKDW WHUP ZDV DSSHDUV WKDW DOO RWKHU HYLGHQFH DW WULDO PHUHO\ SODFHV GHILQHGE\WKH8QLWHG6WDWHV6XSUHPH&RXUWLQ5REHUWVl s$ %UXPOH\DWWKHVFHQHRIWKHPXUGHUZKLFKLQLWVHOILVQRW DW WKHPDMRULW\KROGVWKDWWKLVVWDWHFRXUWGHFLVLRQZDV DFULPH FRQWUDU\WRWKHUXOHRIODZVHWIRUWKLQ5REHUWV s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j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mWKH&RXUW SUHVHQWDWLRQRIWKHHYLGHQFHRQYLGHRWDSHLQVWHDGRIWKHOLYH IRXQGWKHXWLOLW\RIWULDOFRQIURQWDWLRQVRUHPRWHWKDWLWGLGQRW WHVWLPRQ\RI7RQ\.LUNOLQKDGDVXEVWDQWLDOLPSDFW m6LPSO\ VWDWHGLWPXVWEHGHWHUPLQHGKRZWKHWHVWLPRQ\RI$QWKRQ\  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

.LUNOLQ ZRXOG KDYH LPSDFWHG WKH MXU\ YHUGLFW KDG LW EHHQ FDQ FRQFOXGH RWKHUZLVH LQ P\ YLHZ LV E\ UHPRYLQJ WKH SUHVHQWHG OLYH LQFRXUW DV RSSRVHG WR RQ YLGHRWDSHl UHOHYDQW6XSUHPH&RXUWGHFLVLRQVIURPWKHLUOLPLWHGFRQWH[WV $SSHOODQWjV%UDW7KH6WDWHDUJXHVWKDWm%UXPOH\FDQ nFRQWH[WVZKLFKWKH&RXUWLWVHOIHPSKDVL]HGZHUHFUXFLDOWR GHPRQVWUDWHOLWWOHRUQRLQMXULRXVHIIHFWIURPWKHSUHVHQWDWLRQ LWVKROGLQJVnDQGWUDQVPXWLQJWKHPLQWRLQYLRODWHUXOHVRI RIWKHYLGHRWDSHDVRSSRVHGWROLYHWHVWLPRQ\l,G7KH6WDWH FRQVWLWXWLRQDO ODZ JRYHUQLQJ WKH IDU GLIIHUHQW VHW RI FRQWLQXHV   m,Q RWKHU ZRUGV LI $QWKRQ\ .LUNOLQ ZDV FLUFXPVWDQFHVSUHVHQWHGKHUH XQDYDLODEOH KLV WHVWLPRQ\ E\ YLGHRWDSH ZRXOG QRW KDYH YLRODWHGWKH&RQIURQWDWLRQ&ODXVH,I$QWKRQ\.LUNOLQZDV 7KH SUHPLVH XQGHUO\LQJ WKH PDMRULW\ RSLQLRQ LV VLPSO\ DYDLODEOH %UXPOH\ FDQQRW GHPRQVWUDWH KRZ KLV WHVWLPRQ\ VWDWHG  ,Q 2KLR Y 5REHUWV  86   6 &W  ZRXOGKDYHGLIIHUHGIURPWKDWFRQWDLQHGRQWKHYLGHRWDSHl   WKH6XSUHPH&RXUWKHOGWKDWDZULWWHQWUDQVFULSWRID ,GDW ZLWQHVVjV WHVWLPRQ\ DW D SUHOLPLQDU\ KHDULQJ ZDV SURSHUO\ DGPLWWHGLQWRHYLGHQFHDWDVXEVHTXHQWFULPLQDOWULDOZKHUH 7KLVVSHFLRXVDUJXPHQWLVXQGHUPLQHGE\ERWKWKLVFRXUWjV WKHZLWQHVVLQTXHVWLRQZDVQRWDYDLODEOHWRWHVWLI\DWWKHWULDO KDUPOHVVHUURUMXULVSUXGHQFHDVZHOODVE\LWVRZQORJLF,Q DQGGHIHQVHFRXQVHOZDVDEOHWRFURVVH[DPLQHWKLVZLWQHVVDW WHUPVRIORJLFWKH6WDWHjVSRVLWLRQLVWKDWWKHDGPLVVLRQLQWR WKHSUHOLPLQDU\KHDULQJ,QVRUXOLQJWKH&RXUWVHWIRUWKD HYLGHQFH RI WKH YLGHRWDSHG GHSRVLWLRQ WHVWLPRQ\ RI WZRSDUW WHVW IRU WKH DGPLVVLRQ RI KHDUVD\ HYLGHQFH RYHU D FRQVWLWXWLRQDOO\DYDLODEOHZLWQHVVHVZLOODOZD\VEHKDUPOHVV GHIHQGDQWjV &RQIURQWDWLRQ &ODXVH FKDOOHQJH     WKH HUURUnDWOHDVWLQFDVHVZKHUHGHIHQVHFRXQVHOKDVFURVV SURVHFXWLRQPXVWHLWKHUSURGXFHWKHRXWRIFRXUWGHFODUDQWDW H[DPLQHGWKHGHSRQHQWnEHFDXVHWKHGHIHQGDQWSHWLWLRQHU WULDORUGHPRQVWUDWHKLVXQDYDLODELOLW\DQG  WKHHYLGHQFH ZLOO QHYHU EH DEOH WR VKRZ WKDW KH ZDV KDUPHG E\ WKH PXVW EHDU DGHTXDWH mLQGLFLD RI UHOLDELOLW\l WR ZDUUDQW LWV DGPLVVLRQRIWKHFRQVWLWXWLRQDOO\LQILUPHYLGHQFH7KH6WDWHjV DGPLVVLRQDWWULDO5REHUWV86DW6&WDW SRVLWLRQFRPSOHWHO\LJQRUHVWKHLPSRUWDQFHRIOLYHLQFRXUW    7KH PDMRULW\ ILQGV 5REHUWV GLUHFWO\ FRQWUROOLQJ WHVWLPRQ\ UHFRJQL]HG E\ WKH 6XSUHPH &RXUW VLQFH DW OHDVW KHUH DQG WKHQ KROGV WKDW WKH 2KLR FRXUWV HLWKHU GLVSHQVHG  LQ0DWWR[6HH0DWWR[86DW HQWLUHO\ZLWKWKHmXQDYDLODELOLW\lSURQJRIWKH5REHUWVWHVWRU LPSURSHUO\GHWHUPLQHGWKDWLWKDGEHHQVDWLVILHG ,QWHUPVRIWKLVFRXUWjVKDUPOHVVHUURUMXULVSUXGHQFHWKH SURSHUVWDQGDUGE\ZKLFKWRJDXJHWKHLQMXULRXVLPSDFWRIWKH , WDNH D GLIIHUHQW YLHZ RQ ERWK DVSHFWV RI WKH PDMRULW\jV DGPLVVLRQRIFRQVWLWXWLRQDOO\LQILUPHYLGHQFHLVWRFRQVLGHU DQDO\VLV,QLWLDOO\,QRWHWKDW5REHUWVLVSDUWRIDGLVWLQFWOLQH WKHHYLGHQFHEHIRUHWKHMXU\DEVHQWWKHFRQVWLWXWLRQDOO\LQILUP RI 6XSUHPH &RXUW GHFLVLRQV DGGUHVVLQJ WKH HIIHFW RI WKH HYLGHQFH6HH*LOOLDP )GDW  KROGLQJDGPLVVLRQRI &RQIURQWDWLRQ&ODXVHXSRQWKHLQWURGXFWLRQRIRXWRIFRXUW WDSHG FRQIHVVLRQ RI ZLWQHVV LQYRNLQJ )LIWK $PHQGPHQW GHFODUDWLRQVDWWULDO6HHHJ:KLWHY,OOLQRLVVXSUD 8QLWHG SULYLOHJH WR EH KDUPOHVV HUURU RQ WKH EDVLV RI WKH RWKHU 6WDWHV Y ,QDGL  86   6 &W    HYLGHQFHDGPLWWHGDWWULDO 6WRQHUY6RZGHUV )G  &DOLIRUQLDY*UHHQVXSUD6HSDUDWHO\WKH6XSUHPH&RXUW  WK&LU   UHMHFWLQJDUJXPHQWWKDWWKHDGPLVVLRQRI KDV LVVXHG D SDLU RI UXOLQJV DGGUHVVLQJ WKH SURFHGXUHV WKH YLGHRWDSHG WHVWLPRQ\ RI DYDLODEOH NH\ ZLWQHVVHV ZDV QHFHVVDU\IRULQFRXUWWHVWLPRQ\WRVDWLVI\WKH&RQIURQWDWLRQ KDUPOHVVHUURUE\H[DPLQLQJWKHUHVWRIWKHWULDOUHFRUG  7KH6WDWHWKXVDUJXHVLQWKHDOWHUQDWLYHWKDWWKHHYLGHQFHRQ OLNHZLVH DSSOLHG RQO\ WKH mXQUHDVRQDEOH DSSOLFDWLRQl DQG QRW WKH WKHUHFRUGVXSSRUWV%UXPOH\jVFRQYLFWLRQIRUFRPSOLFLW\WR mFRQWUDU\ WRl SURQJ RI †  G   UHFRJQL]LQJ WKDW mWKH 6XSUHPH &RXUW FRPPLW DJJUDYDWHG PXUGHU HYHQ ZLWKRXW 7RQ\ .LUNOLQjV KDV QRW KDG RFFDVLRQ WR DSSO\l WKH UHTXLUHPHQW RI ZLWQHVV XQDYDLODELOLW\ LQ WKH FRQWH[W RI YLGHRWDSHG WHVWLPRQ\ s$ DW   %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

DSSO\ WR WKH IDFWV EHIRUH XV  ,QGHHG ZH DUH QRW HYHQ YLGHRWDSHGGHSRVLWLRQ7KH6WDWHSRLQWVWRWKHWHVWLPRQ\RI FRQFHUQHGZLWKDVFHUWDLQLQJWKHmFRUUHFWlLQWHUSUHWDWLRQRIWKH 'DYLV DQG 6DQGHUV WR VXSSRUW WKLV DUJXPHQW  'DYLV DQ &RQIURQWDWLRQ&ODXVHDOWKRXJK,EHOLHYHWKDWWKLVLQTXLU\LV RFFXSDQWRIWKH*UDQG3UL[RQWKHGD\RIWKHPXUGHUWHVWLILHG KLJKO\LQVWUXFWLYHWRWKHLVVXHEHIRUHXV5DWKHURXUWDVNKHUH WRWKHIDFWVRIWKHLQFLGHQWXQWLOWKHSURGXFWLRQRIWKHPXUGHU LV QDUURZO\ FLUFXPVFULEHG E\ WKH WHUPV RI WKH IHGHUDO ZHDSRQE\%UXPOH\LQFOXGLQJ%UXPOH\jVVWDWHPHQWWKDWWKH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW RI   YLFWLP KDG VHHQ WKH *UDQG 3UL[jV OLFHQVH SODWHV  $IWHU m$('3$l XQGHUZKLFKZHPD\QRWJUDQWWKHKDEHDVUHOLHI %UXPOH\SURGXFHGWKHUHYROYHUKRZHYHU'DYLVWHVWLILHGWKDW VRXJKW E\ 3HWLWLRQHU :LOOLH %UXPOH\ XQOHVV WKH FKDOOHQJHG KHVWDUWHGUXQQLQJWRZDUGKRPHDQGWKXVGLGQRWVHHDQ\WKLQJ VWDWH FRXUW UXOLQJ mZDV FRQWUDU\ WR RU LQYROYHG DQ HOVH  $V KH ZDV UXQQLQJ 'DYLV KHDUG WZR VKRWV ILUHG XQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG)HGHUDOODZ 6DQGHUV WHVWLILHG WR %UXPOH\jV LQFULPLQDWLQJ VWDWHPHQWV LQ DVGHWHUPLQHGE\WKH6XSUHPH&RXUWRIWKH8QLWHG6WDWHVl SULVRQEXWZDVQRWDZLWQHVVWRDQ\RIWKHUHOHYDQWHYHQWV 86&† G  VHHDOVR:LOOLDPVY7D\ORU6 &W    FRQVWUXLQJWKLVSURYLVLRQ  :HKROGWKDW7RQ\.LUNOLQjVYLGHRWDSHGWHVWLPRQ\KDGD VXEVWDQWLDODQGLQMXULRXVHIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKH 7KH PDMRULW\ SXUSRUWV WR DSSO\ WKHVH $('3$ VWDQGDUGV MXU\jVYHUGLFW7KHWHVWLPRQ\RI'DYLVDQG6DQGHUVLVOLPLWHG DQGWKHQFRQFOXGHVWKDWWKH2KLRFRXUWjVGHFLVLRQWRDGPLWWKH 'DYLV GLG QRW WHVWLI\ WKDW KH KHDUG %UXPOH\ WHOO 'HOPDU YLGHRWDSHGWHVWLPRQ\RI7RQ\.LUNOLQZDVERWKFRQWUDU\WR .LUNOLQ WR mZDVWHl %HFN\ .QDSS QRU GLG KH WHVWLI\ WKDW DQG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI WKH UHOHYDQW 6XSUHPH %UXPOH\ KDQGHG 'HOPDU WKH UHYROYHU IRU WKDW SXUSRVH &RXUW SUHFHGHQWV  7KLV DQDO\VLV LQ P\ MXGJPHQW XWWHUO\ %HFDXVH KH UDQ DZD\ 'DYLV GLG QRW ZLWQHVV WKH VKRRWLQJ VXEYHUWVWKHSODLQLQWHQWRI&RQJUHVVLQHQDFWLQJWKH$('3$ LWVHOIDVGLG7RQ\6DQGHUVjVWHVWLPRQ\LVUDWKHULQFRKHUHQW WRmSODFH>@DQHZFRQVWUDLQWRQWKHSRZHURIDIHGHUDOKDEHDV DQGHVWDEOLVKHV DWPRVW WKDW%UXPOH\VDLGWKDW.LUNOLQVKRW FRXUW WR JUDQW D VWDWH SULVRQHUjV DSSOLFDWLRQ IRU D ZULW RI .QDSS1RQHRIWKHRWKHUZLWQHVVHVFDOOHGDWWULDOWHVWLILHGWR KDEHDVFRUSXVZLWKUHVSHFWWRFODLPVDGMXGLFDWHGRQWKHPHULWV %UXPOH\jVKDQGLQJRIWKHUHYROYHUWR'HOPDUWR%UXPOH\jV LQVWDWHFRXUWl:LOOLDPV6&WDW7KHFDVHEHIRUH VWDWHPHQW WR 'HOPDU WR mZDVWHl .QDSS RU WR WKH VKRRWLQJ XVZLWKLWVXQLTXHVHWRIIDFWVWKDWLQYLWHWRFRQVLGHUZKDWOLHV LWVHOI  7KLV LV QRW D FDVH ZKHUH WKH VXEVWDQFH RI WKH DW WKH FRUH RI WKH FRQVWLWXWLRQDO ULJKW RI FRQIURQWDWLRQ FKDOOHQJHGWHVWLPRQ\ZDVDOUHDG\EHIRUHWKHMXU\IURPRWKHU VHHPLQJO\ SURYLGHV DPSOH JURXQG IRU UHDVRQDEOH PLQGV WR VRXUFHV6HH+LOO )GDW,QVWHDGWKLVLVDFDVHLQ GLIIHUDQGWKLVFRXQVHOVDJDLQVWWKHH[HUFLVHRIRXUOLPLWHG ZKLFK mWKH GHSRVLWLRQ>@ >ZDV@ WKH NH\ SLHFH RI HYLGHQFHl SRZHUXQGHUWKHKDEHDVVWDWXWH7KHRQO\ZD\WKHPDMRULW\ 6WRQHU )GDW7RQ\.LUNOLQZDVFOHDUO\WKH6WDWHjV SULQFLSDOZLWQHVV$VDUHVXOWWKHUHFDQEHmQRGRXEWWKDWWKH  7KH PDMRULW\jV DSSOLFDWLRQ RI WKH mFRQWUDU\ WRl FODXVH RI  †  G  LV SDUWLFXODUO\ WURXEOLQJ DV WKLV FODXVH LV WULJJHUHG RQO\ mLI 2I WKH ILYH PHQ LQ 'HOPDUjV *UDQG 3UL[ RQ WKH GD\ RI WKH PXUGHU WKH VWDWH FRXUW DUULYHV DW D FRQFOXVLRQ RSSRVLWH WR WKDW UHDFKHG E\ >WKH RI .QDSS n %UXPOH\ 'HOPDU .LUNOLQ 7RQ\ .LUNOLQ .HYLQ 'DYLV DQG 6XSUHPH@ &RXUW RQ D TXHVWLRQ RI ODZ RU LI WKH VWDWH FRXUW GHFLGHV D FDVH 0DUW\ 0DUVKDOO n RQO\ 'DYLV DQG 7RQ\ .LUNOLQ E\ YLGHRWDSHG GLIIHUHQWO\ WKDQ WK>H@ &RXUW KDV RQ D VHW RI PDWHULDOO\ LQGLVWLQJXLVKDEOH GHSRVLWLRQ WHVWLILHG GXULQJ WKH JXLOW SKDVH RI %UXPOH\jV WULDO 7KH IDFWVl :LOOLDPV   6 &W DW  $V GLVFXVVHG LQ GHWDLO EHORZ WKH GHIHQVH SODQQHG RQ FDOOLQJ 'HOPDU DW RQH SRLQW LQ WKH WULDO EXW LQVWHDG GLG 6XSUHPH &RXUWjV &RQIURQWDWLRQ &ODXVH GHFLVLRQV DUH VR UHDGLO\ QRW SXW RQ D FDVH %UXPOH\ GLG QRW WHVWLI\ RQ KLV RZQ EHKDOI LQ WKH JXLOW GLVWLQJXLVKDEOH WKDW LW VHHPV LQFRQFHLYDEOH WR PH WKDW WKH FKDOOHQJHG 2KLR SKDVH 0DUVKDOO WHVWLILHG GXULQJ WKH PLWLJDWLRQ SKDVH +LV WHVWLPRQ\ FRXUW UXOLQJV LQ WKLV FDVH FRXOG EH IRXQG WR VDWLVI\ WKLV VWDQGDUG (YHQ GLIIHUV LQ PDQ\ UHVSHFWV IURP WKDW RI 7RQ\ .LUNOLQ 6SHFLILFDOO\ 0DUVKDOO %UXPOH\jV RZQ FRXQVHO DFNQRZOHGJHG DW RUDO DUJXPHQW WKDW WKH KDEHDV WHVWLILHG WKDW %UXPOH\ QHYHU KDQGOHG WKH UHYROYHU QHYHU SRLQWHG WKH VWDWXWHjV mFRQWUDU\ WRl SURQJ GRHV QRW DSSO\ KHUH DQG WKH 'LVWULFW &RXUW UHYROYHU DW .QDSS DQG QHYHU WROG 'HOPDU WR mZDVWHl KHU s$ DW   %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

JXLOW\YHUGLFWRQWKDWFRXQWZDVVXEVWDQWLDOO\LQIOXHQFHGE\ WKLV VRUW RI SROLF\ GHWHUPLQDWLRQ LQ WKH JXLVH RI D WKHDGPLVVLRQRI>WKHYLGHRWDSHG@WHVWLPRQ\l,GDW FRQVWLWXWLRQDOUXOLQJ & 7KH'LVWULFW&RXUW'LG1RW$EXVH,WV'LVFUHWLRQLQ ,QGHHGZHVKRXOGEHSDUWLFXODUO\UHOXFWDQWWRGRVRKHUH 'HQ\LQJWKH6WDWHjV0RWLRQIRU3RVWsXGJPHQW5HOLHI ZKHUH L WKHFRQVWLWXWLRQDOSURYLVLRQLQTXHVWLRQVD\VQRWKLQJ RQH ZD\ RU WKH RWKHU RQ WKH VXEMHFW LL  WKH DFFXVHG :HUHYLHZDGLVWULFWFRXUWjVGHQLDORID5XOH E PRWLRQ XQGHQLDEO\ KDV EHHQ DIIRUGHG WKH VSHFLILF ULJKW JXDUDQWHHG XQGHU WKH DEXVH RI GLVFUHWLRQ VWDQGDUG  6HH )XWHUQLFN Y XQGHUWKHOLWHUDOODQJXDJHRIWKLVSURYLVLRQnQDPHO\mWREH 6XPSWHU 7RZQVKLS  )G   WK &LU   FRQIURQWHGZLWKWKHZLWQHVVHVDJDLQVWKLPlDQG LLL DOORIWKH $SSO\LQJWKLVVWDQGDUGZHDIILUPWKHGLVWULFWFRXUWjVGHQLDORI SXUSRVHVXQGHUO\LQJWKHFRQVWLWXWLRQDOJXDUDQWHHKDYHEHHQ WKH 6WDWHjV PRWLRQ IRU UHOLHI XQGHU 5XOH  E    5XOH DFKLHYHG  8QGHU WKH FLUFXPVWDQFHV SUHVHQWHG LQ WKLV FDVH  E  VWDWHVWKDWm>R@QPRWLRQDQGXSRQVXFKWHUPVDVDUH ZKHUH DQ\ GHYLDWLRQV IURP WKH WUDGLWLRQDO SUDFWLFH RI OLYH MXVWWKHFRXUWPD\UHOLHYHDSDUW\IURPDILQDOMXGJPHQW WHVWLPRQ\ DW WULDO GLG QRW UHVXOW LQ DQ\ GHQLDO RI WKH FRUH RUGHURUSURFHHGLQJIRUPLVWDNHLQDGYHUWHQFHVXUSULVH FRQVWLWXWLRQDOULJKWRIFRQIURQWDWLRQRUVRIDUDVWKHUHFRUG RUH[FXVDEOHQHJOHFWl)HG5&LY3 E  7KHGLVWULFW UHYHDOVXQGHUPLQHDQ\RILWVSXUSRVHV,ZRXOGKROGWKDWWKH FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ GHQ\LQJ WKH 6WDWHjV DGPLVVLRQ RI WKH YLGHRWDSHG WHVWLPRQ\ RI 7RQ\ .LUNOLQ DW PRWLRQ IRU UHOLHI  :H KDYH SUHYLRXVO\ KHOG WKDW D GLVWULFW :LOOLH%UXPOH\jVWULDOGLGQRWYLRODWH%UXPOH\jVULJKWVXQGHU FRXUW GRHV QRW DEXVH LWV GLVFUHWLRQ ZKHQ LW GHQLHV SRVW WKH&RQIURQWDWLRQ&ODXVH MXGJPHQW UHOLHI WR D SDUW\ UDLVLQJ WKH VDPH LVVXHV DQG DUJXPHQWV SRVWMXGJPHQW DV WKRVH UHMHFWHG E\ WKH GLVWULFW % 7KH 6WDWH &RXUWjV 5XOLQJ 6DWLVILHV WKH 1DUURZ FRXUWLQLWVSULRU ILQDO MXGJPHQW6HH)XWHUQLFN)GDW 6WDQGDUG RI 5HYLHZ *RYHUQLQJ )HGHUDO +DEHDV 6LPLODUO\LQWKHSUHVHQWFDVHWKH6WDWHGLGQRWRIIHUDQ\ &RUSXV3URFHHGLQJV DUJXPHQWVLQLWVREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjVUHSRUW DQGUHFRPPHQGDWLRQWKDWWKHPDJLVWUDWHMXGJHnDQGWKXVWKH $V WKH IRUHJRLQJ DQDO\VLV LQGLFDWHV , EHOLHYH WKDW WKH GLVWULFW FRXUW LQ DGRSWLQJ WKH PDJLVWUDWH MXGJHjV DGPLVVLRQRI7RQ\.LUNOLQjVYLGHRWDSHGWHVWLPRQ\DW:LOOLH UHFRPPHQGDWLRQnKDGQRWDOUHDG\UHMHFWHG %UXPOH\jVWULDOLIYLHZHGDVDTXHVWLRQRIILUVWLPSUHVVLRQ ZRXOGVDWLVI\DSURSHUFRQVWUXFWLRQRIWKH6L[WK$PHQGPHQWjV 7KH6WDWHUDLVHVWKUHHREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjV &RQIURQWDWLRQ&ODXVH%XWRIFRXUVHWKLVLVQRWWKHWHVWZH UHSRUWDQGUHFRPPHQGDWLRQ)LUVWWKH6WDWHDUJXHVWKDWWKH PXVWDSSO\LQFRQVLGHULQJ%UXPOH\jVKDEHDVSHWLWLRQDQGZH DGPLVVLRQ RI WKH YLGHRWDSHG GHSRVLWLRQ WHVWLPRQ\ GLG QRW PD\ QRW HQJDJH KHUH LQ WKH FRQYHQWLRQDO FRPPRQODZ YLRODWH%UXPOH\jVFRQIURQWDWLRQULJKWVEHFDXVH%UXPOH\ZDV HQGHDYRURIUHYLHZLQJWKHFRQVWLWXWLRQDOWH[WDQGWKHMXGLFLDO JLYHQDQRSSRUWXQLW\WRFURVVH[DPLQHWKHGHSRQHQW%XWWKH SUHFHGHQWV DQG GHWHUPLQLQJ IRU RXUVHOYHV KRZ WKH\ VKRXOG PDJLVWUDWH MXGJHjV UHSRUW DQG UHFRPPHQGDWLRQ FRUUHFWO\ IRFXVHG RQ WKH LVVXH RI XQDYDLODELOLW\ WKXV UHMHFWLQJ WKH 6WDWHjVHPSKDVLVRQWKHUHOLDELOLW\RIWKHWHVWLPRQ\6HFRQG  1RWDEO\ XQGHU WKH VDPH ORJLF WKDW ZRXOG FRQVWUXH WKH &RQIURQWDWLRQ WKH6WDWHDUJXHVWKDWWKHXVHRIDYLGHRWDSHGGHSRVLWLRQDV &ODXVH DV IRUELGGLQJ WKH XVH RI YLGHRWDSHG WHVWLPRQ\ D FRXUW FRXOG MXVW RSSRVHG WR D WUDQVFULEHG GHSRVLWLRQ VHUYHV &RQIURQWDWLRQ DV UHDGLO\ FRQFOXGH WKDW PLFURSKRQHV DQG VSHDNHUV VKRXOG QRW EH DOORZHG

&ODXVHYDOXHVE\EHWWHUSHUPLWWLQJWKHMXURUVWRHYDOXDWHWKH LQ WKH FRXUWURRP EHFDXVH WKH\ GLVWRUW WR VRPH GHJUHH WKH XQDPSOLILHG VSHDNLQJ YRLFHV RI WKH ZLWQHVVHV DQG WKHUHE\ GLPLQLVK WKH mSXUHl ULJKW RI GHPHDQRU RI WKH GHSRQHQW  7KH PDJLVWUDWH MXGJH FOHDUO\ FRQIURQWDWLRQ DQG WKH MXU\jV RSSRUWXQLW\ WR DVVHVV GHPHDQRU n DW OHDVW DV UHMHFWHGWKLVDUJXPHQW m9LGHRWDSHGWHVWLPRQ\FOHDUO\KDVLWV FRPSDUHG WR WKH mLGHDOl RI SUHVXPDEO\ DQ WK &HQWXU\ FRXUWURRP ZLWKRXW VXFK WHFKQRORJ\  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

&RQIURQWDWLRQ   LQVXUHVWKDWWKHZLWQHVVZLOOJLYHKLV GLVDGYDQWDJHVZKHQXVHGLQOLHXRIOLYHLQFRXUWWHVWLPRQ\l VWDWHPHQWVXQGHURDWKnWKXVLPSUHVVLQJKLPZLWKWKH s$DW7KLUGWKH6WDWHDUJXHGWKDWLIWKHDGPLVVLRQRI VHULRXVQHVVRIWKHPDWWHUDQGJXDUGLQJDJDLQVWWKHOLHE\ WKHGHSRVLWLRQYLRODWHG%UXPOH\jVFRQIURQWDWLRQULJKWVWKHQ WKH SRVVLELOLW\ RI D SHQDOW\ IRU SHUMXU\    IRUFHV WKH LW ZDV KDUPOHVV HUURU  7KH PDJLVWUDWH MXGJH UHMHFWHG WKLV ZLWQHVV WR VXEPLW WR FURVVH[DPLQDWLRQ WKH mJUHDWHVW FRQFOXVLRQDVZHOO OHJDO HQJLQH HYHU LQYHQWHG IRU WKH GLVFRYHU\ RI WUXWKl >DQG@  SHUPLWVWKHMXU\WKDWLVWRGHFLGHWKHGHIHQGDQWjV 7KHGLVWULFWFRXUWUHFRQVLGHUHGWKHVHLVVXHVDIWHUWKH6WDWH IDWHWRREVHUYHWKHGHPHDQRURIWKHZLWQHVVLQPDNLQJKLV ILOHG LWV REMHFWLRQV WR WKH PDJLVWUDWH MXGJHjV UHSRUW DQG VWDWHPHQWWKXVDLGLQJWKHMXU\LQDVVHVVLQJKLVFUHGLELOLW\ UHFRPPHQGDWLRQ DQG DJDLQ DGRSWHG WKH PDJLVWUDWH MXGJHjV UHFRPPHQGDWLRQV7KXVZHKROGWKDWWKHGLVWULFWFRXUWGLG *UHHQ   86 DW   6 &W DW   IRRWQRWH ZLWK QRW DEXVH LWV GLVFUHWLRQ LQ GHQ\LQJ WKH 6WDWHjV PRWLRQ IRU FLWDWLRQRPLWWHG  UHOLHI XQGHU 5XOH  E    7KH GLVWULFW FRXUW KDG DOUHDG\ FRQVLGHUHGWKHPHULWVRIWKH6WDWHj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jVJUDQWLQJRIKDEHDVUHOLHIWR%UXPOH\RQKLVFRQYLFWLRQ WKHZHLJKWRIWKH&RQVWLWXWLRQEHKLQGRQHVLGHRUWKHRWKHULQ IRUFRPSOLFLW\WRFRPPLWDJJUDYDWHGPXUGHU0RUHRYHUZH VXFKDGHEDWHDQG,EHOLHYHWKDWMXGJHVVKRXOGUHVLVWPDNLQJ $)),50WKHGLVWULFWFRXUWjVGHQLDORIWKH6WDWHjVPRWLRQIRU SRVWMXGJPHQWUHOLHI

 7KH DYDLODEOH DQHFGRWDO HYLGHQFH VXJJHVWV WKDW LW LV VLPSO\ GLIIHUHQW WR YLHZ D VSHDNHU OLYH YHUVXV RQ YLGHRWDSH DQG WKDW RQH IRUP RI YLHZLQJ FDQQRW UHDGLO\ EH FKDUDFWHUL]HG DV mEHWWHUl WKDQ WKH RWKHU 7KH ILUVW .HQQHG\1L[RQ GHEDWH GXULQJ WKH   SUHVLGHQWLDO FDPSDLJQ SURYLGHV D ZHOONQRZQ LOOXVWUDWLRQ RI WKLV SKHQRPHQRQ 7KH ZLGHVSUHDG FRQVHQVXV WKDW .HQQHG\ ZRQ WKLV FRQWHVW RZHV PXFK PRUH WR WKH YLVXDO LPDJHV SURMHFWHG E\ WKH WZR FDQGLGDWHV RQ WHOHYLVLRQ WKDQ WR ZKDW DFWXDOO\ ZDV VDLG GXULQJ WKH GHEDWH 6HH 7KHRGRUH + :KLWH 7KH 0DNLQJ RI WKH 3UHVLGHQW   DW      m,W ZDV WKH SLFWXUH LPDJH WKDW KDG GRQH LWl ZLWK 1L[RQ DSSHDULQJ VORXFKHG XQVKDYHQ DQG KDJJDUG DIWHU D UHFHQW LOOQHVV ,G DW   

7KLV DFNQRZOHGJHG GLVWLQFWLRQ EHWZHHQ OLYH DQG WHOHYLVHG LPDJHV KRZHYHU WHOOV XV OLWWOH DERXW ZKLFK PRGH RI FRPPXQLFDWLRQ PLJKW EHWWHU VHUYH WKH WUXWKVHHNLQJ IXQFWLRQ RI D WULDO )RU ZKDW LW LV ZRUWK , GDUHVD\ WKDW WKH DYHUDJH MXURU KDV D JRRG GHDO PRUH H[SHULHQFH LQ DVVHVVLQJ WKH GHPHDQRU DQG FUHGLELOLW\ RI SHRSOH RQ WHOHYLVLRQ WKDQ RI LQGLYLGXDOV RQ WKH ZLWQHVV VWDQG LQ D FRXUWURRP  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

BBBBBBBBBBBBBBB RSSRUWXQLW\ ZDV SUHVHUYHG LQ WKLV FDVH WKURXJK WKH YLGHRWDSLQJRI.LUNOLQjVWHVWLPRQ\ ',66(17 BBBBBBBBBBBBBBB ,Q DGGLWLRQ DQG DV SRLQWHG RXW E\ %UXPOH\jV FRXQVHO LQ RSSRVLQJ WKH YLGHRWDSLQJ SURFHGXUH VRXJKW E\ WKH 526(1'LVWULFWsXGJHGLVVHQWLQJ SURVHFXWLRQLWLVFRQFHLYDEOHWKDWQHZGHYHORSPHQWVEHWZHHQ WKHWLPHRIWKHZLWQHVVjVWHVWLPRQ\DQGWKHWLPHRIWULDOPLJKW ,,1752'8&7,21 XQGHUPLQHRUZHDNHQWKHLQLWLDOFRQIURQWDWLRQDQGJLYHULVH WRDGHVLUHWRmUHFRQIURQWlWKHZLWQHVV)RUH[DPSOHDQRWKHU 7KLVKDEHDVDFWLRQFDOOVXSRQXVWRH[DPLQHWKHLPSDFWRI ZLWQHVV PLJKW FKDQJH KLV VWRU\ RU QHZ HYLGHQFH PLJKW EH PRGHUQWHFKQRORJ\XSRQWKHFRUHFRQVWLWXWLRQDOYDOXHVZKLFK XQFRYHUHG WKDW EHDUV XSRQ WKH SUHYLRXVO\ WDNHQ WHVWLPRQ\ XQGHUOLH WKH 6L[WK $PHQGPHQWjV &RQIURQWDWLRQ &ODXVH DV <HWZKLOHWKLVPLJKWZHOOEHDOHJLWLPDWHFRQFHUQXQGHUD ZHOODVWKHSURSHUUROHRIWKHIHGHUDOFRXUWVLQUHYLHZLQJVWDWH GLIIHUHQWVHWRIIDFWVDQGFLUFXPVWDQFHVWKHUHLVQRWKLQJLQWKH FRXUWGHFLVLRQVZKLFKLQWHUSUHWWKHVHYDOXHV%HFDXVHRIWKH UHFRUG EHIRUH XV WKDW VXJJHVWV WKHUH ZHUH DQ\ VXFK QHZ LPSRUWDQFHRIWKHVHLVVXHVDQGEHFDXVH,ILUPO\GLVDJUHHZLWK GHYHORSPHQWV LQ WKLV FDVH  :KLOH %UXPOH\jV FRXQVHO ZDV YLUWXDOO\ HYHU\ HOHPHQW RI WKH PDMRULW\jV DQDO\VLV RI WKHVH DZDUH RI DQG H[SUHVVO\ UDLVHG WKLV FRQFHUQ EHIRUH .LUNOLQ PDWWHUV , ZULWH DW VRPH OHQJWK WR UHVSHFWIXOO\ UHJLVWHU P\ WHVWLILHGWKHUHFRUGWHOOLQJO\LVGHYRLGRIDQ\PDWHULDOFKDQJHV GLVVHQW LQFLUFXPVWDQFHVEHWZHHQWKHGDWHRIWKLVWHVWLPRQ\DQGWKH WLPHRIWULDOMXVWRYHUDPRQWKODWHU0RUHRYHUHYHQZLWKWKH  6SHFLILFDOO\WKLVDFWLRQDULVHVIURPWKHGHFLVLRQRIDVWDWH EHQHILWRIKLQGVLJKWDQGDFRPSOHWHWULDOWUDQVFULSW%UXPOH\ WULDOFRXUWWRDGPLWRYHUD6L[WK$PHQGPHQW&RQIURQWDWLRQ KDVQRWSRLQWHGWRDQ\ GHYHORSPHQWVDWRUEHIRUHWULDOWKDW &ODXVHFKDOOHQJHWKHYLGHRWDSHGWHVWLPRQ\RIZLWQHVV7RQ\ JDYH ULVH WR D QHHG RU HYHQ D GHVLUH WR UHFDOO .LUNOLQ IRU .LUNOLQDWWKHWULDORI3HWLWLRQHU$SSHOOHH:LOOLH%UXPOH\RQ IXUWKHU FURVVH[DPLQDWLRQ  ,Q VKRUW WKHUH LV QR UHDVRQ WR FKDUJHV RI FRPSOLFLW\ WR FRPPLW DJJUDYDWHG PXUGHU DQG EHOLHYH WKDW .LUNOLQjV OLYH WHVWLPRQ\ DW WULDO ZRXOG KDYH NLGQDSLQJ  .LUNOLQ JDYH WKH FKDOOHQJHG WHVWLPRQ\ VKRUWO\ GHYLDWHG LQ DQ\ ZD\ IURP WKH YLGHRWDSHG YHUVLRQ WKDW ZDV EHIRUH %UXPOH\jV WULDO LQ D FRXUWURRP ZLWK WKH WULDO MXGJH SUHVHQWHGWRWKHMXU\ SUHVLGLQJDQGIRUWKHVSHFLILFIXOO\DQWLFLSDWHGDQGH[SUHVVO\ GLVFORVHGSXUSRVHRISUHVHQWLQJWKLVYLGHRWDSHGWHVWLPRQ\LQ $FFRUGLQJO\,ILQGQRFRQVWLWXWLRQDOVLJQLILFDQFHLQWKHWZR OLHX RI .LUNOLQjV OLYH WHVWLPRQ\ DW WKH IRUWKFRPLQJ WULDO UHVSHFWVLQZKLFK%UXPOH\jVRSSRUWXQLW\WRFRQIURQW.LUNOLQ .LUNOLQ WHVWLILHG LQ WKH SUHVHQFH RI %UXPOH\ DQG KLV WULDO PLJKW KDYH GLIIHUHG IURP VRPH LPDJLQHG mLGHDOl RI FRXQVHO DV ZHOO DV %UXPOH\jV IULHQGV DQG UHODWLYHV LQ WKH FRQIURQWDWLRQ  &HUWDLQO\ WKH OLWHUDO WHUPV RI WKH JDOOHU\DQG%UXPOH\jVFRXQVHOH[WHQVLYHO\FURVVH[DPLQHG &RQIURQWDWLRQ &ODXVH LWVHOI GR QRW UHTXLUH D mOLYHl DQGUHFURVVH[DPLQHGWKHZLWQHVV7KLVWHVWLPRQ\WKHQZDV FRQIURQWDWLRQEHWZHHQDFFXVHUDQGDFFXVHGLQIURQWRIWKHMXU\ IXOO\SUHVHQWHGWRWKHMXU\DVKRUWWLPHODWHULQWKHYHU\VDPH DQGDWWKHWLPHRIWULDO0RUHRYHUWKHGUDIWHUVRIWKH6L[WK FRXUWURRP7RWKLVGD\%UXPOH\KDVRIIHUHGQHLWKHUHYLGHQFH $PHQGPHQWFRXOGQRWSRVVLEO\KDYHIRUPHGDQRSLQLRQDVWR QRU DUJXPHQW WKDW .LUNOLQjV WHVWLPRQ\ RU KLV FURVV WKHUHODWLYHPHULWVRIOLYHYHUVXVYLGHRWDSHGFRQIURQWDWLRQ H[DPLQDWLRQE\GHIHQVHFRXQVHOZRXOGKDYHGHYLDWHGLQDQ\ )LQDOO\WKHSURFHGXUHHPSOR\HGLQWKLVFDVHIXOO\DFKLHYHGDOO UHVSHFW ZKDWVRHYHU IURP WKH YLGHRWDSHG YHUVLRQ LI WKH RIWKHSXUSRVHVRIFRQIURQWDWLRQDVLGHQWLILHGE\WKH6XSUHPH SURVHFXWLRQKDGEHHQFRPSHOOHGWRDJDLQLQFXUWKHH[SHQVH &RXUWLQ*UHHQ DQGDGPLQLVWUDWLYHEXUGHQRIEULQJLQJ.LUNOLQIURP$UL]RQD  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

LWLPSRUWDQWWKDWDFRQIURQWDWLRQVKRXOGRFFXULQIURQWRIWKH WR2KLRIRU%UXPOH\jVWULDOMXVWRYHUDPRQWKDIWHUWKLVVDPH WULHURIIDFW,Q0DWWR[IRUH[DPSOHWKH&RXUWHQYLVLRQHGmD FRVWO\ SURFHVV KDG EHHQ HPSOR\HG WR VHFXUH .LUNOLQjV SHUVRQDOH[DPLQDWLRQDQGFURVVH[DPLQDWLRQRIWKHZLWQHVV SUHVHQFHDWWKHWULDORI%UXPOH\jVFRGHIHQGDQW LQZKLFKWKHDFFXVHGKDVDQRSSRUWXQLW\QRWRQO\RIWHVWLQJ WKHUHFROOHFWLRQDQGVLIWLQJWKHFRQVFLHQFHRIWKHZLWQHVVEXW ,Q P\ YLHZ WKLV UHFRUG HVWDEOLVKHV WKDW :LOOLH %UXPOH\ RIFRPSHOOLQJKLPWRVWDQGIDFHWRIDFHZLWKWKHMXU\LQRUGHU IXOO\ DYDLOHG KLPVHOI RI KLV 6L[WK $PHQGPHQW ULJKW mWR EH WKDWWKH\PD\ORRNDWKLPDQGMXGJHE\KLVGHPHDQRUXSRQ FRQIURQWHGZLWKWKHZLWQHVVHVDJDLQVWKLPlDQGVSHFLILFDOO\ WKH VWDQG DQG WKH PDQQHU LQ ZKLFK KH JLYHV KLV WHVWLPRQ\ 7RQ\.LUNOLQ7KHPDMRULW\FRQFOXGHVRWKHUZLVHUHDGLQJWKH ZKHWKHUKHLVZRUWK\RIEHOLHIl0DWWR[86DW UHOHYDQW6XSUHPH&RXUWSUHFHGHQWVDVVWDWLQJDQLQYLRODEOH 6&WDW  HPSKDVLVDGGHG 6LPLODUO\'HDQ:LJPRUHjV UHTXLUHPHQWWKDWDZLWQHVVEHSURGXFHGOLYHDWWULDOLIDWDOO WUHDWLVH RSLQHV WKDW DQ HOHPHQW DOEHLW mVHFRQGDU\ DQG SRVVLEOH3HUKDSVPRUHUHPDUNDEO\WKHPDMRULW\KROGVWKDW GLVSHQVDEOHl RI WKH ULJKW RI FRQIURQWDWLRQ LV WKH DELOLW\ WR LWVLQWHUSUHWDWLRQRIWKHVHSUHFHGHQWVLVWKHRQO\SHUPLVVLEOH FRPSHOmWKHSUHVHQFHRIWKHZLWQHVVEHIRUHWKHWULEXQDOVRWKDW RQH DQG WKDW WKH 2KLR FRXUWVj GLIIHUHQW DQDO\VLV RI WKH KLVGHPHDQRUZKLOHWHVWLI\LQJPD\IXUQLVKVXFKHYLGHQFHRI FRQVWLWXWLRQDOULJKWRIFRQIURQWDWLRQZDVERWKmFRQWUDU\WRl KLVFUHGLELOLW\DVFDQEHJDWKHUHGWKHUHIURPlsRKQ+HQU\ DQGDQmXQUHDVRQDEOHDSSOLFDWLRQlRIWKHVH6XSUHPH&RXUW :LJPRUH(YLGHQFH† DW  &KDGERXUQUHY   GHFLVLRQVUHQGHUHGXQGHUKLJKO\GLVVLPLODUIDFWV (YHQDVVXPLQJWKDWWKH&RQIURQWDWLRQ&ODXVHHQFRPSDVVHV 1HLWKHU WKH &RQIURQWDWLRQ &ODXVH QRU 6XSUHPH &RXUW WKLVRSSRUWXQLW\IRUWKHWULHURIIDFWWRDFWXDOO\JD]HXSRQWKH SUHFHGHQWPDQGDWHVWKLVUHVXOW5DWKHU,ZRXOGKROGWKDWWKH DFFXVHU DV KH FRQIURQWV WKH DFFXVHG WKH MXU\ FHUWDLQO\ KDG 2KLR FRXUWV UHDVRQDEO\ FRQVWUXHG WKH GHFLVLRQV RI WKH VXFKDQRSSRUWXQLW\LQWKLVFDVH7KURXJKWKHWHFKQRORJ\RI 6XSUHPH&RXUWDVSHUPLWWLQJWKHLQWURGXFWLRQRIYLGHRWDSHG YLGHRWDSH WKH MXU\ ZDV DEOH WR GLUHFWO\ ZLWQHVV DQG DVVHVV ZLWQHVVWHVWLPRQ\WDNHQIRUWKHVSHFLILFSXUSRVHRIWULDOLQD 7RQ\ .LUNOLQjV GHPHDQRU DV KH WHVWLILHG DJDLQVW :LOOLH WULDOOLNH VHWWLQJ DQG ZLWK IXOO RSSRUWXQLW\ IRU FURVV %UXPOH\ DQG WR XVH WKLV LQIRUPDWLRQ LQ GHWHUPLQLQJ WKH H[DPLQDWLRQE\WKHDFFXVHG ZHLJKWWRJLYHWR.LUNOLQjVWHVWLPRQ\3ODLQO\WKHODQJXDJH RI WKH &RQIURQWDWLRQ &ODXVH LWVHOI GRHV QRW FRPSHO D ,,)$&78$/$1'352&('85$/%$&.*5281' GLVWLQFWLRQ EHWZHHQ OLYH DQG YLGHRWDSHG FRQIURQWDWLRQV LQGHHGDVQRWHGWKH&ODXVHGRHVQRWH[SUHVVO\UHTXLUHWKDW $OWKRXJK WKH PDMRULW\ RSLQLRQ VHWV IRUWK PRVW RI WKH WKHMXU\ZLWQHVVWKHFRQIURQWDWLRQDWDOOZKHWKHUDVLWKDSSHQV SHUWLQHQWEDFNJURXQGRIWKLVFDVH,ZLVKWRKLJKOLJKWDIHZ RURWKHUZLVH LPSRUWDQWIDFWVDQGFLUFXPVWDQFHVVXUURXQGLQJWKHYLGHRWDSHG WHVWLPRQ\DWLVVXHLQWKLVDSSHDO)LUVWZKLOHWKHPDMRULW\ 6HFRQG%UXPOH\jVRSSRUWXQLW\WRFRQIURQW.LUNOLQDUJXDEO\ FRQVLVWHQWO\UHIHUVWR7RQ\.LUNOLQjVmGHSRVLWLRQWHVWLPRQ\l IHOOVKRUWRIWKHmLGHDOlEHFDXVHLWGLGQRWRFFXUmDWWKHWLPH WKLV FKDUDFWHUL]DWLRQ WHQGV WR REVFXUH WKH GHJUHH WR ZKLFK RIWULDOlDVVHHPLQJO\FDOOHGIRULQFHUWDLQ 6XSUHPH&RXUW .LUNOLQjVWHVWLPRQ\ZDVJLYHQLQDIXOO\WULDOOLNHVHWWLQJ+H UXOLQJV6HHHJ*UHHQ 86DW 6&WDW  WHVWLILHG XQGHU RDWK LQ WKH YHU\ VDPH FRXUWURRP LQ ZKLFK $JDLQ VLQFH WKH 6L[WK $PHQGPHQW LWVHOI LPSRVHV QR VXFK %UXPOH\ZDVWULHGMXVWRYHUDPRQWKODWHU%UXPOH\DQGKLV UHTXLUHPHQWLWLVDSSURSULDWHWRFRQVLGHUWKHSXUSRVHVWKDW WULDOFRXQVHOZHUHSUHVHQWDQG%UXPOH\jVIDPLO\DQGIULHQGV PLJKWEHVHUYHGE\VXFKDFRQGLWLRQ2QHDSSDUHQWDGYDQWDJH ZHUH SHUPLWWHG WR UHPDLQ LQ WKH FRXUWURRPjV JDOOHU\ WR RIFRQIURQWDWLRQDWWULDOLVWKDWWKHWULHURIIDFWWKHQKDVDQ REVHUYH .LUNOLQjV WHVWLPRQ\  0RUHRYHU WKH WULDO MXGJH RSSRUWXQLW\WRZLWQHVVLW$VMXVWGLVFXVVHGKRZHYHUWKLV SUHVLGHGRYHUWKLVSURFHHGLQJDIWHUILUVWVWDWLQJKLVUHOXFWDQFH WRmEHLQYROYHGLQWDNLQJGHSRVLWLRQVlZKHUHWKHSURVHFXWRU  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

QRWHGWKHVRPHZKDWXQXVXDOmQDWXUHRIWKHVHFLUFXPVWDQFHVl VZRUQZLWQHVVDJDLQVWKLP7RQ\.LUNOLQXQGHUFRQGLWLRQV DQGWKHGHVLUHmWRKDYHDVFOHDQDYLGHRWDSHIRUSUHVHQWDWLRQ WKDW PDWFKHG WKRVH RI KLV IRUWKFRPLQJ WULDO ZLWK WKH WULDO DW WULDO LI WKH QHHG DULVHVl  s$ DW    ,Q VKRUW WKH MXGJHSUHVLGLQJDQGKLVIULHQGVDQGUHODWLYHVSUHVHQWLQWKH H[DPLQDWLRQWRRNSODFHMXVWDVWKHMXU\ZRXOGKDYHVHHQLW FRXUWURRP OLYH 0RUHRYHU WKH SURVHFXWLRQ GLG QRW ORRN WR VRPH RWKHU 1H[W DOO SDUWLHV WKH SURVHFXWLRQ DQG GHIHQVH DOLNH SURFHHGLQJ DULVLQJ LQ D ZKROO\ GLIIHUHQW FRQWH[W VXFK DV D XQGHUVWRRG WKDW .LUNOLQjV WHVWLPRQ\ ZDV EHLQJ WDNHQ DQG SUHOLPLQDU\KHDULQJWRREWDLQWKHHYLGHQFHLWRIIHUHGDJDLQVW SUHVHUYHGRQYLGHRWDSHIRUXVHDW%UXPOH\jVWULDODQGIRUQR %UXPOH\DWWULDO7RWKHFRQWUDU\.LUNOLQjVWHVWLPRQ\ZDV RWKHU SXUSRVH  ,Q UHTXHVWLQJ WKLV YLGHRWDSHG SURFHHGLQJ XVHG SUHFLVHO\ DQG VROHO\ IRU WKH SXUSRVH IRU ZKLFK LW ZDV XQGHU2KLR&ULPLQDO5XOH $ WKHSURVHFXWRUVWDWHG WDNHQDVDVXEVWLWXWHIRU.LUNOLQjVDFWXDOSK\VLFDOSUHVHQFH GXULQJ WKH WULDO  6LPSO\ VWDWHG :LOOLH %UXPOH\ ZDV $VWKHFRXUWLVDZDUHIURPZKDWKDVEHHQVWDWHGLQRXU mFRQIURQWHG ZLWK WKH ZLWQHVV>@ DJDLQVW KLPl LQ IXOO ZULWWHQ PRWLRQ WKH ZLWQHVV LQ WKLV PDWWHU $QWKRQ\ FRPSOLDQFH ZLWK WKH SODLQ ODQJXDJH RI WKH &RQIURQWDWLRQ .LUNOLQZKRLVWKHEURWKHURI>%UXPOH\jV@FRGHIHQGDQW &ODXVH  ,Q IDFW WKH VDPH FDQ EH VDLG HYHQ LI WKLV 'HOPDU.LUNOLQZKRVHFDVHKDVDOUHDG\EHHQGLVSRVHG FRQVWLWXWLRQDOSURYLVLRQLVFRQVWUXHGDVUHTXLULQJQRWMXVWWKH RILVFXUUHQWO\DUHVLGHQWRI$UL]RQDDQGLVLQFDUFHUDWHG IDFHWRIDFHPHHWLQJHQFRPSDVVHGZLWKLQLWVOLWHUDOWHUPVEXW WKHUH RQ D n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mLGHDOl n OHDYLQJ DVLGH IRU WKH 6HFRQGWKH6WDWHPXVWWKHQKDYHWZRGHSXW\VKHULIIV PRPHQWWKHTXHVWLRQZKHWKHUWKLVmLGHDOlLVHQVKULQHGLQWKH JRRXWJHWKLPEULQJKLPEDFNWDNHKLPRXWDQGWKHQ 6L[WK$PHQGPHQWjV&RQIURQWDWLRQ&ODXVH)LUVWDVQRWHG FRPHEDFNDJDLQZKLFKWDNHVDWRWDORIILYHURXQGWULS WKH 6XSUHPH &RXUW KDV VSRNHQ RI D GHIHQGDQWjV ULJKW WR D WLFNHWV DW WKH VWDWHjV H[SHQVH DV ZHOO DV WKH UHODWHG mIDFHWRIDFH PHHWLQJ ZLWK ZLWQHVVHV DSSHDULQJ EHIRUH WKH KRXVLQJIRUWKHGHSXWLHVZKLOHWKH\DUHRXWWKHUH>7KL@V WULHURIIDFWl&R\86DW6&WDWDQG KDV VWDWHG WKDW WKH &RQIURQWDWLRQ &ODXVH HQVXUHV WKH RSSRUWXQLW\mRIFRPSHOOLQJ>DQDFFXVHU@WRVWDQGIDFHWRIDFH  ZLWK WKH MXU\l 0DWWR[  86 DW   6 &W DW   $V QRWHG E\ WKH PDMRULW\ WKLV 5XOH SURYLGHV LQ SHUWLQHQW SDUW +HUHWKHFRQIURQWDWLRQEHWZHHQ%UXPOH\DQGKLVDFFXVHUGLG ,I LW DSSHDUV SUREDEOH WKDW D SURVSHFWLYH ZLWQHVV ZLOO EH QRW RFFXU mOLYHl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jVFDVH LWWXUQHGRXWWKDWDZLWQHVVZDVXQDYDLODEOHWRWHVWLI\DW :H WKLQN WKDW LW LV YHU\ QHFHVVDU\ WR SUHVHUYH KLV WULDO%HIRUHWKHPLGGOHRIWKHVHYHQWHHQWKFHQWXU\WKH WHVWLPRQ\E\ZD\RIVWHQRJUDSKLFWUDQVFULSWDVZHOODV FRPPRQODZFRXUWVGHYHORSHGDVRSKLVWLFDWHGERG\RI YLGHRWDSHVRWKDWLWFDQEHSUHVHQWHGDWWULDOLQOLHXRIKLV GRFWULQHJRYHUQLQJZKHQLWZDVDFFHSWDEOHWRXVHDWWULDO OLYHWHVWLPRQ\LIKHjVXQDYDLODEOHWRXV7KHUHIRUHZH HTXLW\GHSRVLWLRQVWDNHQRIZLWQHVVHVQRORQJHUDYDLODEOH DVNWKHFRXUWWRSHUPLWXVWRSURFHHGZLWKWKHWDNLQJRI $QG SHUKDSV PRVW LPSRUWDQWO\ IRU RXU SXUSRVHV LQ WKHGHSRVLWLRQWRGD\ SROLWLFDOO\ FKDUJHG WULDOV LQ WKH 7XGRU DQG HDUO\ 6WXDUW HUDV HVSHFLDOO\ WULDOV IRU WKH FULPH RI WUHDVRQ WKH s$DW DXWKRULWLHVGLGQRWDOZD\VEULQJWKHDFFXVLQJZLWQHVVHVWR WKHWULDO%XWEHJLQQLQJHYHQEHIRUHWKHPLGGOHRIWKH %UXPOH\jVFRXQVHOYLJRURXVO\RSSRVHGWKH6WDWHjVUHTXHVW VL[WHHQWKFHQWXU\ZHILQGUHSHDWHGGHPDQGVE\WUHDVRQ SULQFLSDOO\RQWKHJURXQGV L WKDWWKH6WDWHKDGQRWPDGHD GHIHQGDQWVWKDWWKHLUDFFXVHUVEHEURXJKWmIDFHWRIDFHl VXIILFLHQWVKRZLQJXQGHU5XOH $ WKDW7RQ\.LUNOLQZRXOG DQGDOVRUHSHDWHGVWDWXWRU\VXSSRUWIRUWKLVSRVLWLRQ%\ EHmXQDEOHWRDWWHQGl%UXPOH\jVWULDOSDUWLFXODUO\ZKHUHWKH WKHPLGGOHRIWKHVHYHQWHHQWKFHQWXU\WKLVSRVLWLRQDQG 6WDWHDSSDUHQWO\mKDGQRSUREOHPLQREWDLQLQJKLVSUHVHQFH WKH DFFXVHGjV ULJKW WR H[DPLQH WKH ZLWQHVVHV KDG IRU WKH FRGHIHQGDQWjV WULDOl s$ DW   LL  WKDW WKH SUHYDLOHG H[SHQVHLQYROYHGLQEULQJLQJ7RQ\.LUNOLQEDFNWR2KLRIRU %UXPOH\jVWULDOZDVQRWDFRJQL]DEOHEDVLVXQGHU5XOH $ )ULHGPDQ VXSUD DW  IRRWQRWHV ZLWK FLWDWLRQV IRUWDNLQJ.LUNOLQjVGHSRVLWLRQ DQG LLL WKDWWKHLQWURGXFWLRQ RPLWWHG  RI .LUNOLQjV YLGHRWDSHG WHVWLPRQ\ DW WULDO ZRXOG YLRODWH %UXPOH\jVULJKWRIFRQIURQWDWLRQXQGHUWKHVWDWHDQGIHGHUDO 5HWXUQLQJWRWKHSUHVHQWFDVHLWLVLPPHGLDWHO\HYLGHQWWKDW FRQVWLWXWLRQVEHFDXVHmWKHMXU\QHHGVWRVHHWKHZLWQHVVOLYH LW GRHV QRW SUHVHQW DQ\WKLQJ UHPRWHO\ UHVHPEOLQJ WKH RQWKHVWDQGDWWKHWLPHWKHWULDOLVDFWXDOO\JRLQJRQWREH mSDUDGLJPDWLFHYLOlRIWULDOE\DIILGDYLWWKDWWKH&RQIURQWDWLRQ DEOHWRDVVHVVKLVFUHGLELOLW\lDQGEHFDXVH.LUNOLQjVDEVHQFH &ODXVH ZDV LQWHQGHG WR SUHYHQW  :LOOLH %UXPOH\ ZDV QRW DW WULDO PLJKW SUHVHQW WKH mSUHGLFDPHQWl WKDW WKH GHIHQVH VXEMHFWHGWRWULDOE\DQRQ\PRXVDFFXVHUVQRUZDVKHFDOOHG ZRXOGEHXQDEOHmWRTXHVWLRQ0U.LUNOLQIXUWKHURQYDULRXV XSRQ WR DQVZHU WR H[ SDUWH VWDWHPHQWV JDWKHUHG E\ WKH LVVXHVWKDWRWKHUZLWQHVVHVKDYHWHVWLILHGWRlGXULQJWKHWULDO SURVHFXWLRQ RXWVLGH KLV SUHVHQFH  7R WKH FRQWUDU\ KH ZDV s$ DW    7KH WULDO FRXUW KRZHYHU SHUPLWWHG WKH DIIRUGHG D IXOO DQG IDLU RSSRUWXQLW\ WR FURVVH[DPLQH WKH SURFHHGLQJWRJRIRUZDUGH[SODLQLQJ  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

,KDYHKDGWKLVJHQWOHPDQ>7RQ\.LUNOLQ@LQP\MDLOP\ SULVRQHU LQ OLHX RI D SHUVRQDO H[DPLQDWLRQ DQG FURVV MDLO LV IXOO XS IRU WKH ODVW ZHHN KDV EHHQ RYHU WKH H[DPLQDWLRQRIWKHZLWQHVVl &DOLIRUQLDY*UHHQ SRSXODWLRQDOORZHGE\WKH)HGHUDOsXGJHDQGWKH\DUHDOO  86DW 6&WDW  m,WLVVXIILFLHQWWR IHORQVGRQjWKDYHDQ\PLVGHPHDQRUVWRSXWRXW6RP\ QRWH WKDW WKH SDUWLFXODU YLFH WKDW JDYH LPSHWXV WR WKH MDLOLVIXOODQG,KDYHWRVHQG>.LUNOLQ@EDFNIURPZKHQFH FRQIURQWDWLRQFODLPZDVWKHSUDFWLFHRIWU\LQJGHIHQGDQWV KHFDPH&DQjWNHHSKLPWKHUH,GRQjWKDYHDQ\URRP RQ µHYLGHQFHj ZKLFK FRQVLVWHG VROHO\ RI H[ SDUWH LQWKHLQQ<RXUFOLHQWLVSUHVHQWDQGWKHUHZLOOEHWKH DIILGDYLWV RU GHSRVLWLRQV VHFXUHG E\ WKH H[DPLQLQJ SRVVLELOLW\ RI    GLUHFW DQG FURVVH[DPLQDWLRQ RI WKH PDJLVWUDWHVWKXVGHQ\LQJWKHGHIHQGDQWWKHRSSRUWXQLW\ ZLWQHVVZLWK\RXUFOLHQWSUHVHQWDQGWKDWZLOOEHSODFHG WRFKDOOHQJHKLVDFFXVHULQDIDFHWRIDFHHQFRXQWHULQ RQYLGHRWDSH,WKLQNZHPHHWWKHUHTXLUHPHQWWKDW IURQWRIWKHWULHURIIDFWl LGDW  6&WDW  KH KDV WKH ULJKW WR FRQIURQW WKH ZLWQHVVHV WKDW WHVWLI\ +DUODQ s FRQFXUULQJ  m)URP WKH VFDQW LQIRUPDWLRQ DJDLQVWKLP DYDLODEOH LW PD\ WHQWDWLYHO\ EH FRQFOXGHG WKDW WKH

   &RQIURQWDWLRQ&ODXVHZDVPHDQWWRFRQVWLWXWLRQDOL]HD 2EYLRXVO\>.LUNOLQ@LVDVWKHSURVHFXWRULQGLFDWHVWR EDUULHU DJDLQVW IODJUDQW DEXVHV WULDOV E\ DQRQ\PRXV PHDPDWHULDOZLWQHVVDVWRZKDWKDSSHQHGDQGKHZLOO DFFXVHUVDQGDEVHQWHHZLWQHVVHVl 'XWWRQY(YDQV EHRXWRIVWDWHLQDQLQVWLWXWLRQLQDQRWKHUVWDWH7KDWRI 86DW   6&WDW +DUODQsFRQFXUULQJLQ FRXUVH LV EH\RQG WKH VXESRHQD SRZHU RI WKH 6WDWH RI UHVXOW  WKHmSDUDGLJPDWLFHYLOWKH&RQIURQWDWLRQ&ODXVH 2KLRDOWKRXJKWKHUHZRXOGEHDSRVVLELOLW\WRUHWXUQKLP ZDVDLPHGDWlZDVmWULDOE\DIILGDYLWl  LIQHFHVVDU\>%UXPOH\jV@PRWLRQWRFDQFHOWKH GHSRVLWLRQZLOOEHGHQLHG,WKLQNWKHUXOHVSURYLGHIRU :KLWHY,OOLQRLV866&W LW7KHUHLVQRZD\WKDW\RXUFOLHQWFDQEHSUHMXGLFHGE\     7KRPDVsFRQFXUULQJLQSDUWDQGFRQFXUULQJLQ WDNLQJWKHGHSRVLWLRQ$VDPDWWHURIIDFWLWPLJKWEHD MXGJPHQW  EHQHILWWRKLPLQWDNLQJWKHGHSRVLWLRQ$EVROXWHO\WKHQ ZHZLOONQRZDQG\RXZLOOKDYHDFRS\RIH[DFWO\ $ UHFHQW VFKRODUO\ UHYLHZ RI WKH RULJLQV RI WKH ZKDWWKLVZLWQHVVKDVVDLGLQWKHFRXUWURRPDQGZRXOG &RQIURQWDWLRQ&ODXVHUHDFKHGDVLPLODUFRQFOXVLRQ VD\LIKHjVFDOOHGDVDZLWQHVV :H DUHXVHGWRWKHLGHDWKDWZLWQHVVHVWHVWLI\XQGHU s$DW   RDWK LQ DQ RSHQ SURFHHGLQJ LQ WKH SUHVHQFH RI WKH DFFXVHG mIDFHWRIDFHl  7KLV ZDV WKH SUDFWLFH RI WKH 7KXVDVWKHSDUWLHVFRQFOXGHGWKHLUDUJXPHQWVRQ$SULO DQFLHQW+HEUHZVDQG5RPDQVDQGIRUFHQWXULHVLWKDV   DQGSURFHHGHGWRWDNH.LUNOLQjVWHVWLPRQ\%UXPOH\DQG EHHQ WKH (QJOLVK ZD\  ,W ZDV GHVFULEHG LQ HVSHFLDOO\ KLVFRXQVHOZHUHIXOO\DZDUHWKDWWKLVYLGHRWDSHGSURFHHGLQJ YLYLGWHUPVE\7KRPDV6PLWKLQWKHVL[WHHQWKFHQWXU\DV PLJKWZHOOEHSUHVHQWHGWRWKHMXU\LQOLHXRI.LUNOLQjVOLYH DQmDOWHUFDWLRQl%XWWKLVLVQRWWKHRQO\ZD\LQZKLFK WHVWLPRQ\ DW WULDO DQG WKH\ DFWHG LQ DFFRUGDQFH ZLWK WKLV WHVWLPRQ\PLJKWEHJLYHQLQDMXGLFLDOSURFHHGLQJ6PLWK XQGHUVWDQGLQJ,QGHHGLQWKHFRXUVHRIFURVVH[DPLQDWLRQ SUHVHQWHGKLVDFFRXQWRI(QJOLVKODZDVFRQWUDVWLQJZLWK %UXPOH\jV FRXQVHO PRUH WKDQ RQFH FDOOHG XSRQ .LUNOLQ WR WKH V\VWHP WKDW WKHQ SUHYDLOHG LQ &RQWLQHQWDO (XURSH 7KHUH WHVWLPRQ\ ZDV WDNHQ XQGHU RDWK EXW RXW RI WKH SUHVHQFHRIWKHSDUWLHV2IWHQLWZDVWDNHQLQIURQWRID  7KH FRXUW DOVR LQVWUXFWHG KRZHYHU WKDW WKH UHFRUG RI .LUNOLQjV QRWDU\ UDWKHU WKDQ DW WKH WULEXQDO LWVHOI DQG ZDV ODWHU WHVWLPRQ\ EH VHDOHG SHQGLQJ IXUWKHU RUGHU RI WKH FRXUW VR WKDW QHLWKHU VLGH SUHVHQWHGWRWKHWULEXQDOLQZULWWHQIRUP FRXOG XVH WKLV PDWHULDO WR LWV DGYDQWDJH LQ SUHSDULQJ IRU WULDO  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

FRQIHVVLRQVRIDFFRPSOLFHVOHWWHUVDQGWKHOLNH DQGWKLV H[SODLQ FHUWDLQ PDWWHUV IRU WKH EHQHILW RI mWKH ODGLHV DQG RFFDVLRQHGIUHTXHQWGHPDQGVE\WKHSULVRQHUWRKDYHKLV JHQWOHPHQRIWKHMXU\l s$DW   0RUHRYHUWKH µDFFXVHUVjLHWKHZLWQHVVHVDJDLQVWKLPEURXJKWEHIRUH UHFRUGSODLQO\GHPRQVWUDWHVWKHYLJRURXVQDWXUHRIWKLVFURVV KLPIDFHWRIDFHl,GDW6HHDOVR:LJPRUH H[DPLQDWLRQGXULQJZKLFK%UXPOH\jVFRXQVHOHOLFLWHGDPRQJ VXSUD†DW m>7@KHUHZDVQRDSSUHFLDWLRQDW RWKHUGDPDJLQJFRQFHVVLRQV.LUNOLQjVWHVWLPRQ\ L WKDWKH DOORIWKHQHFHVVLW\RIFDOOLQJDSHUVRQWRWKHVWDQGDVD KDGOLHGWRDYRLGEHLQJLPSOLFDWHGLQDPXUGHUDQGmWRSURWHFW ZLWQHVVl  UDWKHU LW ZDV FRPPRQ SUDFWLFH WR REWDLQ P\ EURWKHUl FRGHIHQGDQW 'HOPDU .LUNOLQ LQ KLV SULRU mLQIRUPDWLRQE\FRQVXOWLQJLQIRUPHGSHUVRQVQRWFDOOHG WHVWLPRQ\ EHIRUH WKH JUDQG MXU\ DQG LQ D SULRU ZULWWHQ LQWRFRXUWl  :+ROGVZRUWK+LVWRU\RI(QJOLVK/DZ VWDWHPHQWWRSURVHFXWRUV s$DW   LL WKDWKH   GHG  7KHLQIDPRXVWULDORI6LU:DOWHU KDGFRQVXPHGDVXEVWDQWLDODPRXQWRIDOFRKROE\WKHWLPHWKH 5DOHLJK RQ FKDUJHV RI WUHDVRQ LQ  LQ ZKLFK WKH YLFWLP%HFN\.QDSSZDVVKRW  LLL WKDWKHZDVXQVXUHZKR &URZQjV SULPDU\ HYLGHQFH DJDLQVW KLP ZDV WKH SURGXFHGWKHPXUGHUZHDSRQRUH[DFWO\mZKRVDLGZKDWlLQ FRQIHVVLRQRIDQDOOHJHGFRFRQVSLUDWRU WKHFRQIHVVLRQ WKHPRPHQWVOHDGLQJXSWRWKHVKRRWLQJ s$DW DQG LY ZDV UHSXGLDWHG EHIRUH WULDO DQG SUREDEO\ KDG EHHQ WKDWmLWZRXOGEHQLFHlLILQH[FKDQJHIRUKLVWHVWLPRQ\WKH REWDLQHG E\ WRUWXUH  LV D ZHOONQRZQ H[DPSOH RI WKLV SURVHFXWLRQJDYHKLPDIDYRUDEOHUHFRPPHQGDWLRQIRUXVHLQ IHDWXUHRI(QJOLVKFULPLQDOSURFHGXUH6HH3ROOLWW7KH KLVXSFRPLQJSDUROHKHDULQJLQ$UL]RQD s$DW  5LJKWRI&RQIURQWDWLRQ ,WV+LVWRU\DQG0RGHUQ'UHVV  s3XE/        6WHSKHQ VXSUD DW )LQDOO\DQGSHUKDSVPRVWLPSRUWDQWO\LQWKHFRQWH[WRID   +ROGVZRUWKVXSUDDW &RQIURQWDWLRQ&ODXVHFKDOOHQJHWKHUHLVQRWHYHQDVXJJHVWLRQ LQWKHUHFRUGRIDQ\PDWHULDOFKDQJHVLQWKHFDVHEHWZHHQWKH $SSDUHQWO\LQUHVSRQVHWRVXFKDEXVHVDFRPPRQODZ GDWHRI.LUNOLQjVYLGHRWDSHGWHVWLPRQ\RQ$SULO  DQG ULJKW RI FRQIURQWDWLRQ EHJDQ WR GHYHORS LQ (QJODQG WKHFRPPHQFHPHQWRI%UXPOH\jVWULDODIHZZHHNVODWHURQ GXULQJ WKH ODWH WK DQG HDUO\ WK FHQWXULHV   sXQH  $OWKRXJKDVQRWHGHDUOLHU%UXPOH\jVFRXQVHO :LJPRUHVXSUD† DW  3ROOLWWVXSUDDW  H[SUHVVO\FLWHGWKLVSRVVLELOLW\RILQWHUYHQLQJFLUFXPVWDQFHV  sXVWLFH6WRU\EHOLHYHGWKDWWKH6L[WK$PHQGPHQW DVDEDVLVIRURSSRVLQJ.LUNOLQjVYLGHRWDSHGWHVWLPRQ\WKH FRGLILHG VRPH RI WKLV FRPPRQ ODZ  s 6WRU\ RQO\VXFKFKDQJHKHZDVDEOHWRLGHQWLI\DWWKHWLPHRIWULDO &RPPHQWDULHVRQWKH&RQVWLWXWLRQRIWKH8QLWHG6WDWHV ZDV DQ DPHQGPHQW WR WKH LQGLFWPHQW  6HH s$ DW    DQGWKLV&RXUWSUHYLRXVO\KDVUHFRJQL]HGWKH <HW DV WKH SURVHFXWLRQ LPPHGLDWHO\ SRLQWHG RXW WKH WULDO FRPPRQODZRULJLQVRIWKHULJKWVHH6DOLQJHUY8QLWHG FRXUWSUHYLRXVO\KDGUXOHGWKDWWKLVDPHQGPHQWGLGQRWLQDQ\ 6WDWHV866&W/(G ZD\DOWHUWKHVXEVWDQFHRIWKHLQGLFWPHQW 6HHLGDW      m7KHULJKWRIFRQIURQWDWLRQGLGQRWRULJLQDWH &RQVHTXHQWO\ DV WKH SURVHFXWLRQ REVHUYHG WKLV VDPH ZLWKWKHSURYLVLRQLQWKH6L[WK$PHQGPHQWEXWZDVD DPHQGPHQWZRXOGKDYHEHHQSURSHUHYHQDWWKHFORVHRIWKH FRPPRQODZULJKWKDYLQJUHFRJQL]HGH[FHSWLRQVl 7KH 6WDWHjVFDVH n DQGWKXVDIWHU.LUNOLQjVWHVWLPRQ\HYHQLI &RXUWFRQVLVWHQWO\KDVLQGLFDWHGWKDWWKHSULPDU\SXUSRVH RIIHUHGOLYHDWWULDO 6HHLG 1RWDEO\%UXPOH\jVFRXQVHOGLG RIWKH&ODXVHZDVWRSUHYHQWWKHDEXVHVWKDWKDGRFFXUUHG QRWDWWHPSWWRUHEXWWKH6WDWHjVSRVLWLRQE\LGHQWLI\LQJDQ\ LQ(QJODQG6HH0DWWR[Y8QLWHG6WDWHV86 ZD\VLQZKLFKWKHDPHQGHGLQGLFWPHQWPLJKWKDYHDOWHUHGKLV   6&W      /(G      m7KH FURVVH[DPLQDWLRQRI.LUNOLQ SULPDU\ REMHFW RI WKH >&RQIURQWDWLRQ &ODXVH@ ZDV WR SUHYHQWGHSRVLWLRQVRUH[SDUWHDIILGDYLWVVXFKDVZHUH $SDUWIURPWKLVWKHUHLVQRVXJJHVWLRQLQWKHUHFRUGEHIRUH VRPHWLPHVDGPLWWHGLQFLYLOFDVHVEHLQJXVHGDJDLQVWWKH XVRIDQ\LQWHUYHQLQJGHYHORSPHQWVWKDWPLJKWKDYHJLYHQULVH  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

WRDGHVLUHWRUHFDOORUUHFURVVH[DPLQH7RQ\.LUNOLQDWWULDO &UDLJVXSUD7KLVSURFHGXUHOLNHWKHVFUHHQXVHGLQ&R\ LQ RUGHU WR H[SORUH LVVXHV EH\RQG WKRVH DGGUHVVHG LQ KLV DOORZHG WKH GHIHQGDQW WR REVHUYH KLV DFFXVHU DV KH RU VKH WHVWLPRQ\ D IHZ ZHHNV HDUOLHU  (YHQ ZLWK WKH EHQHILW RI WHVWLILHG EXW SUHYHQWHG WKH FKLOG ZLWQHVV IURP VHHLQJ WKH KLQGVLJKW DQG D FRPSOHWH WULDO UHFRUG %UXPOH\jV EULHI RQ DFFXVHG7KHUHVXOWDVsXVWLFH6FDOLDREVHUYHGLQGLVVHQWZDV DSSHDOLVFRQVSLFXRXVO\ODFNLQJLQDQ\VRUWRIFODLPWKDWKH DVHHPLQJO\FRPSOHWHGHQLDORIDmFDWHJRULFDOJXDUDQWHHRIWKH ZDV GHQLHG D IXOO DQG IDLU RSSRUWXQLW\ WR FURVVH[DPLQH &RQVWLWXWLRQlnQDPHO\mDGHIHQGDQWjVULJKWWRIDFHKLVRU .LUNOLQ RQ DQ\ RI WKH PDWWHUV XSRQ ZKLFK WKLV ZLWQHVV KHUDFFXVHUVLQFRXUWl&UDLJ 86DW6&W WHVWLILHG,QVKRUWZHPXVWFRQFOXGHRQWKHUHFRUGEHIRUHXV DW 6FDOLDsGLVVHQWLQJ 1HYHUWKHOHVVXSRQUHYLHZLQJ WKDW.LUNOLQjVOLYHWHVWLPRQ\DWWULDOZRXOGQRWKDYHGHYLDWHG WKH &RXUWjV &RQIURQWDWLRQ &ODXVH SUHFHGHQWV WKH PDMRULW\ LQDQ\UHVSHFWIURPKLVYLGHRWDSHGWHVWLPRQ\JLYHQDVKRUW REVHUYHGWKDWmZHFDQQRWVD\WKDW>IDFHWRIDFH@FRQIURQWDWLRQ WLPHHDUOLHU LV DQ LQGLVSHQVDEOH HOHPHQW RI WKH 6L[WK $PHQGPHQWjV JXDUDQWHHRIWKHULJKWWRFRQIURQWRQHjVDFFXVHUVl 86 ,,,$1$/<6,6 DW 6&WDW5DWKHUWKH&RXUWUHDVRQHGWKDW UHOLDELOLW\ LV WKH mFHQWUDO FRQFHUQ RI WKH &RQIURQWDWLRQ $ 7KH3ODLQ/DQJXDJHDQG+LVWRULFDO%DFNJURXQGRI &ODXVHl 86DW6&WDW&RQVHTXHQWO\ WKH 6L[WK $PHQGPHQWjV &RQIURQWDWLRQ &ODXVH WKHRSSRUWXQLW\IRUIDFHWRIDFHFRQIURQWDWLRQPD\EHGHQLHG 6XSSRUW WKH 6WDWH &RXUWjV 'HFLVLRQ WR $GPLW WKH ZKHUHmQHFHVVDU\WRIXUWKHUDQLPSRUWDQWSXEOLFSROLF\DQG 9LGHRWDSHG 7HVWLPRQ\ RI 7RQ\ .LUNOLQ DW :LOOLH RQO\ ZKHUH WKH UHOLDELOLW\ RI WKH WHVWLPRQ\ LV RWKHUZLVH %UXPOH\jV7ULDO DVVXUHGl 86DW6&WDW ,Q DQDO\]LQJ 3HWLWLRQHU$SSHOOHH %UXPOH\jV 6L[WK ,WVHHPVIDLUWRVD\WKHQWKDWWKLVMXULVSUXGHQFHIDOOVVKRUW $PHQGPHQW FKDOOHQJH WR WKH DGPLVVLRQ RI 7RQ\ .LUNOLQjV RI LGHQWLI\LQJ D FRUH VHW RI SULQFLSOHV SURPRWHG E\ WKH YLGHRWDSHGWHVWLPRQ\DWKLVWULDOWKHVWDUWLQJSRLQWQHFHVVDULO\ &RQIURQWDWLRQ&ODXVH<HWGHVSLWHDOOWKLVXQFHUWDLQW\WKHUH LV WKH ODQJXDJH RI WKH &RQIURQWDWLRQ &ODXVH LWVHOI ZKLFK LV DW OHDVW D FRQVHQVXV DPRQJ WKH DXWKRULWLHV DV WR WKH SURYLGHVWKDWm>L@QDOOFULPLQDOSURVHFXWLRQVWKHDFFXVHGVKDOO KLVWRULFDOSUDFWLFHWKDWWKHULJKWRIFRQIURQWDWLRQZDVGHVLJQHG HQMR\WKHULJKWWREHFRQIURQWHGZLWKWKHZLWQHVVHVDJDLQVW WR FRXQWHUDFW n QDPHO\ WULDO E\ DIILGDYLW  7KLV ZDV KLPl  86 &RQVW DPHQG 9,  2Q LWV IDFH WKLV ODQJXDJH UHFRJQL]HGLQWKHHDUOLHVW6XSUHPH&RXUWGHFLVLRQLQWHUSUHWLQJ FRXOGKDUGO\EHPRUHFOHDUDQGGLUHFW<HWDVLVRIWHQWKH WKHFODXVHVHH0DWWR[86DW6&WDW DQG FDVH WKLV VWUDLJKWIRUZDUG ODQJXDJH KDV SURGXFHG P\ULDG ZDVDIILUPHGLQWKH&RXUWjVPRVWUHFHQWFDVHRQWKHVXEMHFW YLHZVDVWRWKHmWUXHHVVHQFHlRIWKHULJKWRIFRQIURQWDWLRQ VHH/LOO\Y9LUJLQLD 6&W    SOXUDOLW\ RSLQLRQ   $V VWDWHG LQ sXVWLFH 7KRPDVjV FRPSUHKHQVLYH 2QHQHHGORRNQRIXUWKHUWKDQWKHOHDGLQJ6XSUHPH&RXUW UHYLHZRIWKHUHOHYDQWKLVWRULFDOVRXUFHV GHFLVLRQVRQWKHVXEMHFWZKLFKYDULRXVO\VWDWHIRUH[DPSOH WKDWWKHmOLWHUDOULJKWWRµFRQIURQWjWKHZLWQHVVDWWKHWLPHRI ,Q WKFHQWXU\ (QJODQG PDJLVWUDWHV LQWHUURJDWHG WKH WULDO    IRUPV WKH FRUH RI WKH YDOXHV IXUWKHUHG E\ WKH SULVRQHUDFFRPSOLFHVDQGRWKHUVSULRUWRWULDO7KHVH &RQIURQWDWLRQ&ODXVHl&DOLIRUQLDY*UHHQ 86  LQWHUURJDWLRQVZHUHmLQWHQGHGRQO\IRUWKHLQIRUPDWLRQRI  6&W     RUWKDWm>W@KHSULPDU\ WKHFRXUW7KHSULVRQHUKDGQRULJKWWREHDQGSUREDEO\ REMHFW RI WKH FRQVWLWXWLRQDO SURYLVLRQ LQ TXHVWLRQ ZDV WR QHYHU ZDV SUHVHQWl   s 6WHSKHQ $ +LVWRU\ RI WKH SUHYHQW GHSRVLWLRQV RU H[ SDUWH DIILGDYLWV    EHLQJ XVHG &ULPLQDO/DZRI(QJODQG  $WWKHWULDOLWVHOI DJDLQVW WKH SULVRQHU LQ OLHX RI D SHUVRQDO H[DPLQDWLRQ DQG mSURRI ZDV XVXDOO\ JLYHQ E\ UHDGLQJ GHSRVLWLRQV FURVVH[DPLQDWLRQRIWKHZLWQHVVl0DWWR[Y8QLWHG6WDWHV  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

WKDWWKHKLVWRULFDOXQGHUVWDQGLQJRIWKHFODXVHIXUQLVKHV 866&W    RUWKDWm>W@KH QRVROLGJXLGHWRDGMXGLFDWLRQ FHQWUDOFRQFHUQRIWKH&RQIURQWDWLRQ&ODXVHLVWRHQVXUHWKH UHOLDELOLW\ RI WKH HYLGHQFH DJDLQVW D FULPLQDO GHIHQGDQW E\ $ UXOH UHTXLULQJ SURGXFWLRQ RI DYDLODEOH ZLWQHVVHV VXEMHFWLQJLWWRULJRURXVWHVWLQJLQWKHFRQWH[WRIDQDGYHUVDU\ ZRXOG VLJQLILFDQWO\ FXUWDLO GHYHORSPHQW RI WKH ODZ RI SURFHHGLQJEHIRUHWKHWULHURIIDFWlVRWKDWmZHFDQQRWVD\ HYLGHQFH WR HOLPLQDWH WKH QHFHVVLW\ IRU SURGXFWLRQ RI WKDW>IDFHWRIDFH@FRQIURQWDWLRQLVDQLQGLVSHQVDEOHHOHPHQW GHFODUDQWV ZKHUH SURGXFWLRQ ZRXOG EH XQGXO\ RIWKH6L[WK$PHQGPHQWjVJXDUDQWHHRIWKHULJKWWRFRQIURQW LQFRQYHQLHQWDQGRIVPDOOXWLOLW\WRDGHIHQGDQW,I RQHjVDFFXVHUVl0DU\ODQGY&UDLJ 86  WKHKHDUVD\H[FHSWLRQLQYROYHGLQDJLYHQFDVHLVVXFKDV   6 &W        1RWZLWKVWDQGLQJ WRFRPPHQGLWVHOIWRUHDVRQDEOHPHQSURGXFWLRQRIWKH WKHVHGLVSDUDWHYLVLRQVRIWKH&RQIURQWDWLRQ&ODXVH,EHOLHYH GHFODUDQWLVOLNHO\WREHGLIILFXOWXQDYDLOLQJRUSRLQWOHVV WKDWFHUWDLQFRUHSULQFLSOHVFDQEHGLVFHUQHGDQGWKDWWKHVH SULQFLSOHVYLHZHGLQOLJKWRIWKHH[SUHVVWHUPVRIWKH&ODXVH 'XWWRQ  86 DW    6 &W DW  +DUODQ s LWVHOI XQLIRUPO\ VXSSRUW WKH DGPLVVLRQ RI WKH YLGHRWDSHG FRQFXUULQJLQUHVXOW  FLWDWLRQVRPLWWHG  WHVWLPRQ\DWLVVXHLQWKLVFDVH 7KXV QHLWKHU D mSODLQ ODQJXDJHl QRU D mIUDPHUVj LQWHQWl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jV VWDWHPHQW LQ DJUHHPHQW WKDW WKH &RQIURQWDWLRQ &ODXVH PHDQV VRPHWKLQJ *UHHQWKDWWKHmOLWHUDOULJKWWRµFRQIURQWjWKHZLWQHVVDWWKH PRUHWKDQZKDWLWOLWHUDOO\VD\V7KHFOHDUHVWH[DPSOHRIWKLV WLPHRIWULDOIRUPVWKHFRUHRIWKHYDOXHVIXUWKHUHGE\WKH GLFKRWRP\ EHWZHHQ ODQJXDJH DQG LQWHUSUHWDWLRQ FRQFHUQV &RQIURQWDWLRQ&ODXVHl*UHHQ 86DW 6&WDW KHDUVD\HYLGHQFHDPDWWHUWRZKLFKWKHFODXVHLWVHOIGRHVQRW    7KH &RXUW PRUH UHFHQWO\ DIILUPHG WKLV YLHZ GLUHFWO\VSHDN$VREVHUYHGLQsXVWLFH+DUODQjVFRQFXUUHQFH H[SODLQLQJ WKDW m>Z@H KDYH QHYHU GRXEWHG    WKDW WKH LQ&DOLIRUQLDY*UHHQ &RQIURQWDWLRQ&ODXVHJXDUDQWHHVWKHGHIHQGDQWDIDFHWRIDFH PHHWLQJ ZLWK ZLWQHVVHV DSSHDULQJ EHIRUH WKH WULHU RI IDFWl 6LPSO\DVDPDWWHURI(QJOLVKWKHFODXVHPD\EHUHDGWR &R\ Y ,RZD  86    6 &W    FRQIHUQRWKLQJPRUHWKDQDULJKWWRPHHWIDFHWRIDFHDOO   &R\WKHUHIRUHLQYDOLGDWHGDSURFHGXUHLQZKLFKD WKRVH ZKR DSSHDU DQG JLYH HYLGHQFH DW WULDO  6LQFH VFUHHQZDVHUHFWHGDWWULDOEHWZHHQWKHFULPLQDOGHIHQGDQWDQG KRZHYHUDQH[WUDMXGLFLDOGHFODUDQWLVQROHVVDmZLWQHVVl WZRFKLOGZLWQHVVHVZKRDFFXVHGKLPRIVH[XDOO\DVVDXOWLQJ WKHFODXVHLVHTXDOO\VXVFHSWLEOHRIEHLQJLQWHUSUHWHGDVD WKHP7KH&RXUWUHDVRQHGWKDWmWKHUHLVVRPHWKLQJGHHSLQ EODQNHWSURKLELWLRQRQWKHXVHRIDQ\KHDUVD\WHVWLPRQ\ KXPDQQDWXUHWKDWUHJDUGVIDFHWRIDFHFRQIURQWDWLRQEHWZHHQ DFFXVHGDQGDFFXVHUDVHVVHQWLDOWRDIDLUWULDOLQDFULPLQDO *UHHQ   86 DW   6 &W DW   +DUODQ s SURVHFXWLRQl86DW6&WDW LQWHUQDO FRQFXUULQJ  IRRWQRWH RPLWWHG   <HW sXVWLFH +DUODQ TXRWDWLRQVDQGFLWDWLRQVRPLWWHG  UHFRJQL]HGWKDWm>Q@HLWKHURIWKHVHSRODUUHDGLQJVLVZKROO\ VDWLVIDFWRU\VWLOOOHVVFRPSHOOLQJl 86DW 6&W sXVWWZR\HDUVODWHUKRZHYHUWKH&RXUWXSKHOGWKHXVHRI DW  +DUODQsFRQFXUULQJ sXVWLFH6FDOLDjVGLVVHQWLQ RQHZD\FORVHGFLUFXLWWHOHYLVLRQWRSUHVHQWWKHWHVWLPRQ\RI 0DU\ODQGY&UDLJOLNHZLVHREVHUYHV DFKLOGZLWQHVVLQDFKLOGVH[XDODEXVHFDVH6HH0DU\ODQGY  %UXPOH\Y:LQJDUG 1R 1R %UXPOH\Y:LQJDUG 

7KH 6L[WK $PHQGPHQW GRHV QRW OLWHUDOO\ FRQWDLQ D   Q    +DUODQsFRQFXUULQJ  m>0@\RZQ SURKLELWLRQXSRQ>KHDUVD\@HYLGHQFHVLQFHLWJXDUDQWHHV UHVHDUFKVDWLVILHVPHWKDWWKHSUHYDLOLQJYLHZnWKDWWKHXVXDO WKHGHIHQGDQWRQO\WKHULJKWWRFRQIURQWmWKHZLWQHVVHV SULPDU\VRXUFHVDQGGLJHVWVRIWKHHDUO\GHEDWHVFRQWDLQQR DJDLQVW KLPl  $V DSSOLHG LQ WKH 6L[WK $PHQGPHQWjV LQIRUPDWLYH PDWHULDO RQ WKH FRQIURQWDWLRQ ULJKW n LV FRQWH[WRIDSURVHFXWLRQWKHQRXQmZLWQHVVlnLQ  FRUUHFWl 5LFKDUG')ULHGPDQ&RQIURQWDWLRQ 7KH6HDUFK DVWRGD\nFRXOGPHDQHLWKHU D RQHmZKRNQRZVRU IRU%DVLF3ULQFLSOHV*HR/s    m7KH VHHVDQ\WKLQJ RQHSHUVRQDOO\SUHVHQWlRU E mRQHZKR RULJLQVRIWKH&ODXVHDUHIDPRXVO\REVFXUHl 7KHSUREOHP JLYHV WHVWLPRQ\l RU ZKR mWHVWLILHVl LH mLQ MXGLFLDO LV H[DFHUEDWHG E\ WKH ODFN RI FRQWHPSRUDQHRXV 6XSUHPH SURFHHGLQJV >RQH ZKR@ PDNH>V@ D VROHPQ GHFODUDWLRQ &RXUW GHFLVLRQV  WKH &RXUW ILUVW FRQVWUXHG WKH FODXVH LQ XQGHU RDWK IRU WKH SXUSRVH RI HVWDEOLVKLQJ RU PDNLQJ 0DWWR[RYHUDKXQGUHG\HDUVDIWHUWKH6L[WK$PHQGPHQWZDV SURRI RI VRPH IDFW WR D FRXUWl   1 :HEVWHU $Q DGRSWHG $PHULFDQ 'LFWLRQDU\ RI WKH (QJOLVK /DQJXDJH  HPSKDVLV DGGHG   6HH DOVR s %XFKDQDQ /LQJXDH 7KLV PXUN\ KLVWRU\ LV QRWDEO\ LOOXVWUDWHG LQ WKH HYROYLQJ %ULWDQQLFDH 9HUD 3URQXQFLDWLR    7KH IRUPHU YLHZV RI sXVWLFH +DUODQ  ,Q *UHHQ XSRQ VXUYH\LQJ WKH PHDQLQJ RQHmZKRNQRZVRUVHHVl ZRXOGFRYHUKHDUVD\ mVFDQWlHYLGHQFHRIWKHIUDPHUVjLQWHQWDQGWKH&RXUWjVHDUO\ HYLGHQFHEXWLVH[FOXGHGLQWKH6L[WK$PHQGPHQWE\WKH GHFLVLRQV sXVWLFH +DUODQ FRQFOXGHG WKDW mDYDLODELOLW\ ZRUGVIROORZLQJWKHQRXQ mZLWQHVVHVDJDLQVWKLPl7KH XQGHUOLHVWKHFRQIURQWDWLRQULJKWl*UHHQ 86DW   SKUDVH REYLRXVO\ UHIHUV WR WKRVH ZKR JLYH WHVWLPRQ\ 6&WDW  +DUODQsFRQFXUULQJ <HWLQWKH&RXUWjV DJDLQVWWKHGHIHQGDQWDWWULDO:HKDYHQRQHWKHOHVVIRXQG YHU\QH[WWHUPsXVWLFH+DUODQDGRSWHG:LJPRUHjVYLHZWKDW LPSOLFLW LQ WKH &RQIURQWDWLRQ &ODXVH VRPH OLPLWDWLRQ WKH &RQIURQWDWLRQ &ODXVH ZDV mLQWHQGHG WR UHJXODWH WULDO XSRQKHDUVD\HYLGHQFHVLQFHRWKHUZLVHWKHJRYHUQPHQW SURFHGXUHlE\VSHFLI\LQJmZKDWPRGHRISURFHGXUHVKDOOEH FRXOG VXEYHUW WKH FRQIURQWDWLRQ ULJKW E\ SXWWLQJ RQ IROORZHGnLHDFURVVH[DPLQLQJSURFHGXUHnLQWKHFDVHRI ZLWQHVVHV ZKR NQRZ QRWKLQJ H[FHSW ZKDW DQ DEVHQW VXFKWHVWLPRQ\DVLVUHTXLUHGE\WKHRUGLQDU\ODZRI(YLGHQFH GHFODUDQWVDLG WREHJLYHQLQIUDMXGLFLDOO\l'XWWRQY(YDQV86  6&W    +DUODQsFRQFXUULQJLQUHVXOW &UDLJ 86DW6&WDW 6FDOLDs TXRWLQJ  s :LJPRUH (YLGHQFH †   DW  G HG GLVVHQWLQJ  FI &UDLJ   86 DW   6 &W DW    sXVWLFH+DUODQWKHQVWDWHG m>$@ OLWHUDO UHDGLQJ RI WKH &RQIURQWDWLRQ &ODXVH ZRXOG DEURJDWH YLUWXDOO\ HYHU\ KHDUVD\ H[FHSWLRQ D UHVXOW ORQJ 1RU DP , QRZ FRQWHQW ZLWK WKH SRVLWLRQ , WRRN LQ UHMHFWHGDVXQLQWHQGHGDQGWRRH[WUHPHl LQWHUQDOTXRWDWLRQV FRQFXUUHQFH LQ &DOLIRUQLD Y *UHHQ VXSUD WKDW WKH DQGFLWDWLRQRPLWWHG  &RQIURQWDWLRQ &ODXVH ZDV GHVLJQHG WR HVWDEOLVK D SUHIHUHQWLDOUXOHUHTXLULQJWKHSURVHFXWRUWRDYRLGWKHXVH *LYHQ WKLV OLQJHULQJ GRXEW XSRQ HPSOR\LQJ D mSODLQ RIKHDUVD\ZKHUHLWLVUHDVRQDEO\SRVVLEOHIRUKLPWRGR ODQJXDJHlDQDO\VLVRQHQDWXUDOO\ORRNVWRWKHLQWHQWRIWKH VR n LQ RWKHU ZRUGV WR SURGXFH DYDLODEOH ZLWQHVVHV IUDPHUV5HJUHWWDEO\WKHVFKRODUVDQG6XSUHPH&RXUWMXVWLFHV )XUWKHU FRQVLGHUDWLRQ LQ WKH OLJKW RI IDFWV VTXDUHO\ ZKRKDYHH[DPLQHGWKHKLVWRULFDOUHFRUGKDYHFRQFHGHGWKDW SUHVHQWLQJ WKH LVVXH DV *UHHQ GLG QRW KDV OHG PH WR m>W@KHUHLVYLUWXDOO\QRHYLGHQFHRIZKDWWKHGUDIWHUVRIWKH FRQFOXGHWKDWWKLVLVQRWDKDSS\LQWHQWWREHDWWULEXWHGWR &RQIURQWDWLRQ&ODXVHLQWHQGHGLWWRPHDQl:KLWHY,OOLQRLV WKH )UDPHUV DEVHQW FRPSHOOLQJ OLQJXLVWLF RU KLVWRULFDO 86 6&W    7KRPDVs HYLGHQFHSRLQWLQJLQWKDWGLUHFWLRQ,WLVFRPPRQJURXQG FRQFXUULQJ VHHDOVR*UHHQ 86 Q 6&W