5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   8QLWHG6WDWHVY%XUWRQ 1R (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS ',675,&7 2) 7(11(66(( 0HPSKLV 7HQQHVVHH IRU $SSHOODQW  &KULVWRSKHU ( &RWWRQ $66,67$17 81,7(' 67$7(6$77251(<0HPSKLV7HQQHVVHHIRU$SSHOOHH 81,7('67$7(6&28572)$33($/6 BBBBBBBBBBBBBBBBB )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB

81,7(' 67$7(6 2) $0(5,&$ ; 521$/'/((*,/0$1&LUFXLWsXGJH$IHGHUDOJUDQG 3ODLQWLII$SSHOOHH  MXU\LQGLFWHG'ZLJKW/%XUWRQIRUSRVVHVVLQJILYHJUDPVRU  PRUH RI FRFDLQH EDVH ZLWK WKH LQWHQW WR GLVWULEXWH DQG IRU  1R SRVVHVVLQJDILUHDUPERWKDVDIHORQDQGLQIXUWKHUDQFHRIGUXJ Y  WUDIILFNLQJ  $IWHU WKH GLVWULFW FRXUW GHQLHG KLV PRWLRQ WR ! VXSSUHVVWKHHYLGHQFHREWDLQHGGXULQJD'HFHPEHU  VHDUFK RI KLV SHUVRQ DQG DXWRPRELOH %XUWRQ FRQGLWLRQDOO\ ':,*+7 / %85721  'HIHQGDQW$SSHOODQW  SOHGJXLOW\WRDOOEXWWKHFKDUJHRIEHLQJDIHORQLQSRVVHVVLRQ RI D ILUHDUP  7KH GLVWULFW FRXUW WKHQ VHQWHQFHG KLP WR 1  PRQWKV RI LPSULVRQPHQW IROORZHG E\  \HDUV RI $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW VXSHUYLVHGUHOHDVH%XUWRQDSSHDOVFKDOOHQJLQJWKHGLVWULFW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDWsDFNVRQ FRXUWjVGHQLDORIKLVPRWLRQWRVXSSUHVV)RUWKHUHDVRQVVHW 1RnsDPHV'7RGG&KLHI'LVWULFWsXGJH IRUWKEHORZZH$)),50WKHMXGJPHQWRIWKHGLVWULFWFRXUW $UJXHG 0D\ ,%$&.*5281'

'HFLGHGDQG)LOHG sXQH $ )DFWXDOEDFNJURXQG

%HIRUH .583$16.<6,/(5DQG*,/0$1&LUFXLW 2IILFHU *DU\ 'DYLGVRQ ZDV RQ SDWURO LQ +HQGHUVRQ s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sDFNVRQ 7HQQHVVHH IRU $SSHOOHH $W DSSUR[LPDWHO\   SP WKDW HYHQLQJ 2IILFHU 21 %5,()   0 'LDQQH 6PRWKHUV 2)),&( 2) 7+( 'DYLGVRQ DUULYHG DW %DXJKQ 6WUHHW  +H FLUFOHG DURXQG D )('(5$/ 38%/,& '()(1'(5 )25 7+( :(67(51 SDUNLQJORWDQGQRWLFHGDQDXWRPRELOHWXUQRQWRWKHVWUHHW

 1R 8QLWHG6WDWHVY%XUWRQ   8QLWHG6WDWHVY%XUWRQ 1R

7KHDXWRPRELOHFDPHWRDVWRSDSSUR[LPDWHO\WHQIHHWIURPD % 3URFHGXUDOEDFNJURXQG mQRSDUNLQJlVLJQ7ZREODFNPHQJRWLQWRWKHEDFNVHDW 7KHDXWRPRELOHGLGQRWGHSDUW$IWHUZDLWLQJDIHZVHFRQGV 7KHJUDQGMXU\UHWXUQHGDWKUHHFRXQWLQGLFWPHQWDJDLQVW 2IILFHU'DYLGVRQSURFHHGHGWRZDUGWKHVWRSSHGDXWRPRELOH %XUWRQ  &RXQW 2QHFKDUJHGKLPZLWKYLRODWLQJ86& LQ KLV SROLFH FUXLVHU GULYLQJ XS LPPHGLDWHO\ EHKLQG LW †E\SRVVHVVLQJILYHJUDPVRUPRUHRIFRFDLQHEDVHZLWK 6HYHUDO PRUH VHFRQGV SDVVHG ZLWK QR PRYHPHQW E\ HLWKHU WKHLQWHQWWRGLVWULEXWH7KHVHFRQGDQGWKLUGFRXQWVFKDUJHG YHKLFOH DW ZKLFK SRLQW 2IILFHU 'DYLGVRQ WXUQHG RQ KLV %XUWRQ ZLWK YLRODWLRQV RI  86& ††  DQG  IRU FUXLVHUjVSROLFHOLJKWV SRVVHVVLQJDILUHDUPLQIXUWKHUDQFHRIGUXJWUDIILFNLQJDQG ZKLOHDIHORQUHVSHFWLYHO\%XUWRQILOHGDPRWLRQWRVXSSUHVV 2IILFHU'DYLGVRQWKHQH[LWHGKLVFUXLVHUDQGDSSURDFKHGWKH WKHHYLGHQFHREWDLQHGE\2IILFHU'DYLGVRQGXULQJWKHLQFLGHQW DXWRPRELOH+HDVNHGWKHGULYHUZKRZDVODWHULGHQWLILHGDV RQ%DXJKQ6WUHHW$IWHUFRQGXFWLQJDKHDULQJRQWKLVLVVXH %XUWRQWRSURGXFHKLVGULYHUj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m$GLVWULFWFRXUWjVGHQLDORIDPRWLRQWRVXSSUHVVHYLGHQFH &KLHI+DOWRPDUULYHGRQWKHVFHQH LVUHYLHZHGXQGHUDK\EULGVWDQGDUG,WVILQGLQJVRIIDFWDUH UHYLHZHG XQGHU WKH µFOHDUO\ HUURQHRXVj VWDQGDUG EXW LWV %XUWRQWKHQDFFHGHGWR2IILFHU'DYLGVRQjVUHTXHVWWKDWKH FRQFOXVLRQVRIODZDUHUHYLHZHGGHQRYRl8QLWHG6WDWHVY SXW KLV KDQGV RQ KLV KHDG DQG EH SDWWHG GRZQ IRU VDIHW\ 2UODQGR)G  WK&LU FHUWGHQLHG6&W SXUSRVHV  ,PPHGLDWHO\ EHIRUH EHJLQQLQJ WKH SDW GRZQ    2IILFHU'DYLGVRQDVNHG%XUWRQ m,VWKHUHDQ\WKLQJRQ\RX, QHHG WR NQRZ DERXW VXFK DV QHHGOHV RU DQ\WKLQJ LQ WKLV %XUWRQDUJXHVWKDW2IILFHU'DYLGVRQjV LQLWLDOVWRSRIWKH QDWXUH"l%XUWRQUHVSRQGHGE\DGPLWWLQJWKDWKHZDVFDUU\LQJ DXWRPRELOHZDVXQODZIXO7KH)RXUWK$PHQGPHQWKRZHYHU PDULMXDQDLQKLVSDQWVSRFNHW2IILFHU'DYLGVRQUHWULHYHGWKH SHUPLWVDQRIILFHUZKRKDVSUREDEOHFDXVHWREHOLHYHWKDWD EDJRIPDULMXDQDDQGDVNHG%XUWRQ m'ZLJKWGR\RXKDYH WUDIILF YLRODWLRQ LV RFFXUULQJ WR GHWDLQ WKH DXWRPRELOH DQ\WKLQJHOVH"l%XUWRQUHSOLHGWKDWKHKDGPRUHQDUFRWLFVLQ UHJDUGOHVVRIWKHRIILFHUjVVXEMHFWLYHPRWLYDWLRQIRUWKHVWRS KLV VKLUW SRFNHW  2IILFHU 'DYLGVRQ WKHUHXSRQ H[WUDFWHG D :KUHQY8QLWHG6WDWHV86   ,QWKLV VQXII ER[ FRQWDLQLQJ FUDFN FRFDLQH IURP %XUWRQjV VKLUW FDVH2IILFHU'DYLGVRQREVHUYHGWKHDXWRPRELOHWKDW%XUWRQ SRFNHW  $IWHU FRPSOHWLQJ WKH SDWGRZQ 2IILFHU 'DYLGVRQ ZDVGULYLQJSDUNHGQHDUDQRSDUNLQJVLJQ%XUWRQFODLPV SODFHG%XUWRQXQGHUDUUHVWIRUGUXJSRVVHVVLRQ'XULQJWKH WKDWKHZDVQRWYLRODWLQJDQ\WUDIILFODZEHFDXVHKHZDVQRW HQVXLQJVHDUFKRIWKHDXWRPRELOHDILUHDUPZDVGLVFRYHUHG WHFKQLFDOO\ mSDUNHGl ZLWKLQ WKH PHDQLQJ RI +HQGHUVRQjV PXQLFLSDOSDUNLQJRUGLQDQFH :HILQGWKLVDUJXPHQWXQSHUVXDVLYHIRUWZRUHDVRQV)LUVW %XUWRQIDLOHGWRUDLVHLWLQWKHGLVWULFWFRXUW7KLVFRXUWKDV 1R 8QLWHG6WDWHVY%XUWRQ   8QLWHG6WDWHVY%XUWRQ 1R

KHOGWKDWmDGHIHQGDQWZKRIDLOVWRUDLVHDVSHFLILFLVVXHDVWKH RFFXSDQWVXQOHVVVRPHWKLQJWKDWRFFXUUHGGXULQJWKHWUDIILF EDVLVIRUVXSSUHVVLRQKDVZDLYHGWKHULJKWWRUDLVHWKDWLVVXH VWRSJHQHUDWHGWKHQHFHVVDU\UHDVRQDEOHVXVSLFLRQWRMXVWLI\D RQDSSHDOl8QLWHG6WDWHVY&ULWWRQ)G   WK IXUWKHU GHWHQWLRQl  ,G DW   %XUWRQ FRQWHQGV WKDW &LU   LQWHUQDOTXRWDWLRQPDUNVRPLWWHG ,QGHHGLQKLV m'DYLGVRQDGPLWWHGWKDWRQFHKHJDYH0U%XUWRQjVOLFHQVH PRWLRQWRVXSSUHVV%XUWRQKLPVHOIUHIHUUHGWRWKHLQFLGHQWLQ EDFNWRKLPKHFRXOGKDYHVLPSO\JLYHQKLPDFLWDWLRQIRU TXHVWLRQDVmDQRUGLQDU\WUDIILFVWRS>LQWKLVLQVWDQFHDSDUNLQJ SDUNLQJLQDQRSDUNLQJ]RQHl$Q\IXUWKHUGHWHQWLRQ%XUWRQ YLRODWLRQ@    l  %UDFNHWV LQ RULJLQDO   +H DOVR DUJXHVZDVXQODZIXODEVHQWUHDVRQDEOHVXVSLFLRQWKDWRWKHU DFNQRZOHGJHG WKDW m>L@Q WKH SUHVHQW FDVHl D SROLFH RIILFHU FULPLQDODFWLYLW\ZDVDIRRW VDZmDYHKLFOHZKLFKDSSHDUHGWREHSDUNHGLQDµQRSDUNLQJj DUHDl 7KH0HVDFRXUWjVVWDWHPHQWKRZHYHUQRORQJHUDFFXUDWHO\ UHSUHVHQWVWKHODZ,Q2KLRY5RELQHWWH 86    6HFRQGWKHWUDIILFODZVRIERWK+HQGHUVRQDQGWKHVWDWHRI WKH6XSUHPH&RXUWFRQVLGHUHGZKHWKHUDPRWRULVWjV)RXUWK 7HQQHVVHHIDLOWRVXSSRUW%XUWRQjVDUJXPHQW%XUWRQFLWHV $PHQGPHQWULJKWVZHUHYLRODWHGZKHUHDIWHULQLWLDOO\EHLQJ †RIWKH+HQGHUVRQWUDIILFFRGHIRUWKHSURSRVLWLRQ VWRSSHGIRUDWUDIILFYLRODWLRQWKHPRWRULVWZDVRUGHUHGRXWRI WKDWDQDXWRPRELOHPXVWEHOHIWXQDWWHQGHGWREHFRQVLGHUHG KLVDXWRPRELOHE\WKHSROLFHRIILFHUDQGDVNHGLIKHZRXOG SDUNHG%XW†SURYLGHVQRVXFKGHILQLWLRQ5DWKHULW FRQVHQWWRDVHDUFKRIWKHYHKLFOHIRULOOHJDOFRQWUDEDQG,G VHWVIRUWKDQLQGHSHQGHQWUXOHWKDWm>Q@RSHUVRQVKDOOOHDYH DW%HFDXVHWKHRIILFHUjVTXHVWLRQKDGH[FHHGHGWKH DQ\ PRWRU YHKLFOH XQDWWHQGHG RQ DQ\ VWUHHW ZLWKRXW ILUVW VFRSHRIWKHWUDIILFVWRSjVLQLWLDOSXUSRVHWKH2KLR6XSUHPH VHWWLQJWKHEUDNHVWKHUHRQl0RUHRQSRLQWLVWKHVWDWH &RXUWKDGUXOHGWKDWWKHFRQVHQWVXEVHTXHQWO\REWDLQHGZDV VWDWXWH WKDW GHILQHV SDUNLQJ DV mWKH VWDQGLQJ RI D YHKLFOH LQYDOLG7KH6XSUHPH&RXUWUHYHUVHGKROGLQJWKDWWKH)RXUWK ZKHWKHURFFXSLHGRUQRWRWKHUZLVHWKDQWHPSRUDULO\IRUWKH $PHQGPHQWUHTXLUHGRQO\WKDWWKHGHWHQWLRQDQGTXHVWLRQEH SXUSRVH RI DQG ZKLOH DFWXDOO\ HQJDJHG LQ ORDGLQJ RU UHDVRQDEOHXQGHUWKHSDUWLFXODUIDFWVRIWKHFDVH,GDW  XQORDGLQJl  7HQQ &RGH $QQ †     %RWK )ROORZLQJ5RELQHWWHWKLVFRXUWLQ8QLWHG6WDWHVY*XLPRQG +HQGHUVRQDQGWKHVWDWHRI7HQQHVVHHEDQSDUNLQJZKHUHD  )G  WK &LU    UHDG 0HVD WR DSSO\ RQ LWV VLJQSURKLELWVLW+HQGHUVRQ7Q2UGLQDQFHVFK† IDFWVnZKHUH WKH PRWRULVW ZDV GHWDLQHG LQ D ORFNHG SROLFH m1R SHUVRQ VKDOO SDUN D YHKLFOH LQ YLRODWLRQ RI DQ\ VLJQ FUXLVHU IRU D FRQVLGHUDEOH SHULRG RI WLPH DIWHU WKH LQLWLDO SODFHGRUHUHFWHGE\WKHVWDWHRUFLW\l 7HQQ&RGH$QQ VWRSnUDWKHUWKDQDVVHWWLQJIRUWKDQLQIOH[LEOHUXOH,GDW † D   IRUELGGLQJVWRSSLQJVWDQGLQJRUSDUNLQJ TXRWLQJWKHVWDWHPHQWRIWKH0HVDFRXUWDQGWKHQH[SODLQLQJ m>D@W DQ\ SODFH ZKHUH RIILFLDO VLJQV SURKLELW VWRSSLQJl  WKDWmZHUHDGWKDWSDVVDJHDVDSSO\LQJWRWKHIDFWVRIWKDWFDVH %HFDXVH KH REVHUYHG WKH DXWRPRELOH GULYHQ E\ %XUWRQ QRWDVKROGLQJWKDWFRQVHQWLVSHUVHLQYDOLGLQDOOFDVHVZKHUH VWRSSHGQHDUDQRSDUNLQJVLJQZKLOHQRWDFWXDOO\HQJDJHGLQ LWLVREWDLQHGDIWHUWKHFRQFOXVLRQRIOHJLWLPDWHGHWHQWLRQl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m2QFHWKHSXUSRVHV DQGKDGQRUHDVRQDEOHVXVSLFLRQWKDWRWKHUFULPLQDODFWLYLW\ RIWKHLQLWLDOWUDIILFVWRSZHUHFRPSOHWHGWKHUHLVQRGRXEW ZDVDIRRW7KHFRXUWVWDWHG m$OWKRXJK*XLPRQGGLGOLPLW WKDW WKH RIILFHU FRXOG QRW IXUWKHU GHWDLQ WKH YHKLFOH RU LWV 0HVDWRLWVIDFWVLWGLGVRRQO\ZLWKUHVSHFWWRWKHLVVXHRIWKH 1R 8QLWHG6WDWHVY%XUWRQ   8QLWHG6WDWHVY%XUWRQ 1R

YDOLGLW\ RI FRQVHQW WR VHDUFK ZKLFK LV REWDLQHG DIWHU WKH PRUHTXHVWLRQVE\DSROLFHRIILFHUWKDQDUHQHFHVVDU\WRLVVXH FRQFOXVLRQ RI DQ LQLWLDO GHWHQWLRQ *XLPRQG GLG QRW DIIHFW DWUDIILFFLWDWLRQWKH6HYHQWK&LUFXLWKDVRSLQHG 0HVDZLWKUHVSHFWWRWKHLVVXHRIUHDVRQDEOHVXVSLFLRQl,G DW Q FLWDWLRQRPLWWHG  4XHVWLRQV WKDW KROG SRWHQWLDO IRU GHWHFWLQJ FULPH \HW FUHDWHOLWWOHRUQRLQFRQYHQLHQFHGRQRWWXUQUHDVRQDEOH 7KHFUXFLDOGLIIHUHQFHEHWZHHQWKHIDFWVRI6PLWKDQGWKRVH GHWHQWLRQ LQWR XQUHDVRQDEOH GHWHQWLRQ  7KH\ GR QRW RI*XLPRQGRUWKHSUHVHQWFDVHLVWKDWWKHSROLFHRIILFHULQ VLJQDO RU IDFLOLWDWH RSSUHVVLYH SROLFH WDFWLFV WKDW PD\ 6PLWKKDGDFWXDOO\LVVXHGDWUDIILFFLWDWLRQEHIRUHTXHVWLRQLQJ EXUGHQWKHSXEOLFnIRUDOOVXVSHFWV HYHQWKHJXLOW\RQHV WKHGULYHUDERXWWRSLFVXQUHODWHGWRWKHSXUSRVHRIWKHWUDIILF PD\ SURWHFW WKHPVHOYHV IXOO\ E\ GHFOLQLQJ WR DQVZHU VWRS7KLVGLVWLQFWLRQZDVGHHPHGWREHGHWHUPLQDWLYHE\WKH 1RUGRWKHTXHVWLRQVIRUFLEO\LQYDGHDQ\SULYDF\LQWHUHVW 6XSUHPH &RXUW LQ .QRZOHV Y ,RZD  86     RUH[WUDFWLQIRUPDWLRQZLWKRXWWKHVXVSHFWVjFRQVHQW ZKLFK KHOG WKDW WKH )RXUWK $PHQGPHQW GLG QRW SHUPLW DQ RIILFHU WR VWRS D PRWRULVW IRU D WUDIILF YLRODWLRQ LVVXH D 8QLWHG 6WDWHV Y &KLOGV  )G   WK &LU  HQ FLWDWLRQ DQG WKHQ VHDUFK WKH PRWRULVW SXUVXDQW WR D VWDWH EDQF FHUWGHQLHG6&W   VWDWXWH WKDW DXWKRUL]HG VHDUFKHV LQFLGHQW WR FLWDWLRQV ,Q FRQWUDVW 2IILFHU 'DYLGVRQ KDG QRW \HW LVVXHG D WUDIILF FLWDWLRQ ,Q WKLV FDVH DIWHU %XUWRQ JDYH 2IILFHU 'DYLGVRQ D YDOLG ZKHQ KH DVNHG ZKHWKHU %XUWRQ ZRXOG FRQVHQW WR D VHDUFK RI GULYHUj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m>7@KH FRPELQDWLRQ RI $WZDWHU DQG DXWRPRELOHIRUFRQWUDEDQGHYHQDIWHUKHKDGSURGXFHGDYDOLG :KUHQ DSSHDU WR HIIHFWLYHO\ QHJDWH WKH &RXUWjV UXOLQJ LQ GULYHUjV OLFHQVH GLG QRW QHFHVVDULO\ PDNH WKH WUDIILF VWRS .QRZOHV Y ,RZD    l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jV mTXHVWLRQLQJ RI >WKH GHIHQGDQW@ DIWHU LVVXLQJ WKH UHTXHVW XQGHU WKH FLUFXPVWDQFHV  5HFHQW 6XSUHPH &RXUW ZDUQLQJ WLFNHW ZDV QRW D GHWHQWLRQ IRU WKH SXUSRVHV RI WKH SUHFHGHQW VXJJHVWV WKDW WKLV LQTXLU\ ZDV UHDVRQDEOH  ,Q )RXUWK $PHQGPHQW &RQVHQVXDO HQFRXQWHUV EHWZHHQ WKH $WZDWHUY&LW\RI/DJR9LVWD86  WKH&RXUW SROLFHDQGSULYDWHFLWL]HQVDUHQRWVHL]XUHVDQGDUHQRWVXEMHFW KHOGWKDWWKH)RXUWK$PHQGPHQWSHUPLWVDSROLFHRIILFHUWR WR)RXUWK$PHQGPHQWVFUXWLQ\l  HIIHFW D FXVWRGLDO DUUHVW RI VRPHRQH IRU D PLVGHPHDQRU SDUNLQJ YLRODWLRQ HYHQ WKRXJK WKH RIIHQVH LV QRW RQH WKDW 3DUWLFXODUO\ZKHUHDVKHUHWKHWUDIILFVWRSWRRNSODFHRQD SHUPLWV WKH YLRODWRUjV DUUHVW XQGHU VWDWH ODZ  ,G DW  VWUHHWNQRZQWRWKHSROLFHDVDKLJKFULPHDUHDZHEHOLHYH $SSO\LQJ$WZDWHUWRWKHFRQWH[WRIDPRWRULVWEHLQJDVNHG WKDWDVNLQJDIHZTXHVWLRQVDERXWLOOHJDODFWLYLW\WRWKHGULYHU RIDQDXWRPRELOHVWRSSHGIRUDWUDIILFYLRODWLRQDW SP 1R 8QLWHG6WDWHVY%XUWRQ  8QLWHG6WDWHVY%XUWRQ 1R

GRHVQRWVHHPXQUHDVRQDEOH6HH,OOLQRLVY:DUGODZ ILUHDUPLQDYHKLFOHZLWKRXWDSHUPLW>7KHRIILFHU@FRXOG 86    m>2@IILFHUVDUHQRWUHTXLUHGWRLJQRUH VHDUFK >WKH GHIHQGDQWjV@ FDU DQG FRQWDLQHUV ZLWKLQ LW WKDW WKH UHOHYDQW FKDUDFWHULVWLFV RI D ORFDWLRQ LQ GHWHUPLQLQJ PLJKWFRQFHDODILUHDUPl 8QLWHG6WDWHVY'DYLV1R  ZKHWKHU WKH FLUFXPVWDQFHV DUH VXIILFLHQWO\ VXVSLFLRXV WR  :/ DW   WK&LU2FW  ZDUUDQWIXUWKHULQYHVWLJDWLRQl :HWKHUHIRUHFRQFOXGHWKDW XSKROGLQJWKHVHDUFKDQGDUUHVWRIDSHUVRQZKRZKHQDVNHG WKH VFRSH DQG GXUDWLRQ RI WKH WUDIILF VWRS LQ WKLV FDVH ZDV E\SROLFHRIILFHUVZKHWKHUVKHZDVFDUU\LQJGUXJVUHSOLHGm, UHDVRQDEOHZKLFKYDOLGDWHV%XUWRQjVFRQVHQWWRVHDUFKWKH JXHVV\RXDUHJRLQJWRILQGRXWVRRQHURUODWHUl  DXWRPRELOH ,,,&21&/86,21 1HLWKHU%XUWRQjVPRWLRQLQWKHGLVWULFWFRXUWQRUKLVEULHIRQ DSSHDODUHFOHDUDVWRZKHWKHUKHDOVRVHHNVWRVXSSUHVVWKH )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH HYLGHQFHRIWKHPDULMXDQDDQGFRFDLQHEDVHWKDWZDVRQKLV MXGJPHQWRIWKHGLVWULFWFRXUW SHUVRQ7KHGLVWULFWFRXUWKRZHYHUDGGUHVVHGWKLVLVVXHDQG FRQFOXGHGWKDWWKHUHZDVQRUHDVRQWRVXSSUHVVWKHHYLGHQFH :HDJUHH,Q3HQQV\OYDQLDY0LPPV86    WKH6XSUHPH&RXUWKHOGmWKDWRQFHDPRWRUYHKLFOHKDVEHHQ ODZIXOO\GHWDLQHGIRUDWUDIILFYLRODWLRQWKHSROLFHRIILFHUV PD\ RUGHU WKH GULYHU WR JHW RXW RI WKH YHKLFOH ZLWKRXW YLRODWLQJ WKH )RXUWK $PHQGPHQWjV SURVFULSWLRQ RI XQUHDVRQDEOHVHDUFKHVDQGVHL]XUHVl,GDWQ2IILFHU 'DYLGVRQ GLG MXVW WKDW DQG WKHQ DVNHG %XUWRQ  m,V WKHUH DQ\WKLQJ RQ \RX , QHHG WR NQRZ DERXW VXFK DV QHHGOHV RU DQ\WKLQJ LQ WKLV QDWXUH"l  7KLV TXHVWLRQ ZDV UHDVRQDEO\ UHODWHGWRWKHRIILFHUjVVDIHW\,QUHVSRQVH%XUWRQYROXQWDULO\ DGPLWWHGWKDWKHZDVFDUU\LQJQDUFRWLFVRQKLVSHUVRQ 7KLV DGPLVVLRQ XQGRXEWHGO\ JDYH 2IILFHU 'DYLGVRQ SUREDEOHFDXVHWRVHDUFKDQGDUUHVW%XUWRQ6HH8QLWHG6WDWHV Y+DUULV86    m$GPLVVLRQVRIFULPH OLNHDGPLVVLRQVDJDLQVWSURSULHWDU\LQWHUHVWVFDUU\WKHLURZQ LQGLFLDRIFUHGLELOLW\nVXIILFLHQWDWOHDVWWRVXSSRUWDILQGLQJ RI SUREDEOH FDXVH WR VHDUFKl  8QLWHG 6WDWHV Y 7RUUHV *XHYDUD)G WK&LU   FRQFOXGLQJ WKDWZKHUHWKHGHIHQGDQWjVmHQFRXQWHUZLWKWKHRIILFHUVZDV FRQVHQVXDODWWKHWLPHVKHDGPLWWHGFDUU\LQJGUXJV>@WKLV DGPLVVLRQSURYLGHGSUREDEOHFDXVHIRUKHUDUUHVWl 8QLWHG 6WDWHVY%UDG\ )G  WK&LU   m$IWHU >WKHGHIHQGDQW@VDLGKHKDGDJXQLQWKHWUXQN>WKHRIILFHU@ KDGSUREDEOHFDXVHWRWKLQNWKDW>WKHGHIHQGDQW@ZDVYLRODWLQJ >WKH &DOLIRUQLD ODZ WKDW@ SURKLELWV FDUU\LQJ D FRQFHDOHG