Professional Documents
Culture Documents
Aquino Vs Military Commission No 2
Aquino Vs Military Commission No 2
Aquino Vs Military Commission No 2
7RGD\LV6DWXUGD\6HSWHPEHU
5HSXEOLFRIWKH3KLOLSSLQHV
6835(0(&2857
0DQLOD
(1%$1&
*51R/0D\
%(1,*126$48,12-5SHWLWLRQHU
YV
0,/,7$5<&200,66,21&+,()2)67$))$50(')25&(62)7+(3+,/,33,1(6DQG6(&5(7$5<2)
1$7,21$/'()(16(7+(&+,()-867,&(2)7+(6835(0(&2857DQG6(&5(7$5<2)-867,&(
UHVSRQGHQWV
7DxDGD6DORQJD2UGRxH]*RQ]DOHV5RGULJR-U5R[DV$UUR\R&DVWURDQG)HOLSHIRUSHWLWLRQHU
2IILFHRIWKH6ROLFLWRU*HQHUDO(VWHOLWR30HQGR]D$VVLVWDQW6ROLFLWRU*HQHUDO9LFHQWH90HQGR]D$VVLVWDQW
6ROLFLWRU*HQHUDO+XJR(*XWLHUUH]-U$VVLVWDQW6ROLFLWRU*HQHUDO5H\QDWR63XQRDQG$WWRUQH\%OHVLOD
4XLQWLOODQIRUUHVSRQGHQWV
$1721,2- x p Z S K
)ROORZLQJ WKH SURFODPDWLRQ RI PDUWLDO ODZ LQ WKH 3KLOLSSLQHV SHWLWLRQHU ZDV DUUHVWHG RQ 6HSWHPEHU
SXUVXDQWWR*HQHUDO2UGHU1R$RIWKH3UHVLGHQWIRUFRPSOLFLW\LQDFRQVSLUDF\WRVHL]HSROLWLFDODQGVWDWHSRZHU
LQ WKH FRXQWU\ DQG WR WDNH RYHU WKH *RYHUQPHQW +H ZDV GHWDLQHG DW )RUW %RQLIDFLR LQ 5L]DO SURYLQFH 2Q
6HSWHPEHUKHVXHGIRUDZULWRIKDEHDVFRUSXVLQZKLFKKHTXHVWLRQHGWKHOHJDOLW\RIWKHSURFODPDWLRQRI
PDUWLDO ODZ DQG KLV DUUHVW DQG GHWHQWLRQ 7KLV &RXUW LVVXHG D ZULW RI KDEHDV FRUSXV UHWXUQDEOH WR LW DQG UHTXLUHG
UHVSRQGHQWV WR ILOH WKHLU UHVSHFWLYH DQVZHUV DIWHU ZKLFK WKH FDVH ZDV KHDUG 7KHUHDIWHU WKH SDUWLHV VXEPLWWHG WKHLU
PHPRUDQGD 3HWLWLRQHU
V ODVW 5HSO\ PHPRUDQGXP ZDV GDWHG 1RYHPEHU 2Q 6HSWHPEHU WKLV &RXUW
GLVPLVVHGWKHSHWLWLRQDQGXSKHOGWKHYDOLGLW\RIPDUWLDOODZDQGWKHDUUHVWDQGGHWHQWLRQRISHWLWLRQHU
,QWKHSUHVHQWFDVHSHWLWLRQHUFKDOOHQJHVWKHMXULVGLFWLRQRIPLOLWDU\FRPPLVVLRQVWRWU\KLPDORQHRUWRJHWKHUZLWK
RWKHUVIRULOOHJDOSRVVHVVLRQRIILUHDUPVDPPXQLWLRQDQGH[SORVLYHVIRUYLRODWLRQRIWKH$QWL6XEYHUVLRQ$FWDQG
IRU PXUGHU 7KH FKDUJHV DUH FRQWDLQHG LQ VL[ DPHQGHG FKDUJH VKHHWV ILOHG RQ $XJXVW ZLWK 0LOLWDU\
&RPPLVVLRQ1R
7KH RULJLQDO SHWLWLRQ LQ WKLV FDVH ZDV ILOHG RQ $XJXVW ,W VRXJKW WR UHVWUDLQ WKH UHVSRQGHQW 0LOLWDU\
&RPPLVVLRQ IURP WKH SURFHHGLQJ ZLWK WKH KHDULQJ DQG WULDO RI SHWLWLRQHU RQ $XJXVW %HFDXVH RI WKH
XUJHQF\ RI WKH SHWLWLRQ WKLV &RXUW FDOOHG D KHDULQJ RQ 6XQGD\ $XJXVW RQ WKH TXHVWLRQ RI ZKHWKHU ZLWK LWV
PHPEHUVKLS RI RQO\ QLQH -XVWLFHV LW KDG D TXRUXP WR WDNH FRJQL]DQFH RI WKH SHWLWLRQ LQ YLHZ RI WKH
FRQVWLWXWLRQDOTXHVWLRQVLQYROYHG$WWKDWKHDULQJWKLV&RXUWDVNHGWKHSDUWLHVWRDJUHHWRVHHNIURPWKH0LOLWDU\
&RPPLVVLRQ D SRVWSRQHPHQW RI SHWLWLRQHU
V WULDO WKH IROORZLQJ GD\ 7KH SXUSRVH ZDV WR UHOLHYH WKH &RXUW RI WKH
SUHVVXUHRIKDYLQJWRGHFLGHWKHTXHVWLRQRITXRUXPZLWKRXWDGHTXDWHWLPHWRGRVR
:KHQWKHSURFHHGLQJVEHIRUHWKH0LOLWDU\&RPPLVVLRQRSHQHGWKHIROORZLQJGD\KRZHYHUSHWLWLRQHUTXHVWLRQHG
WKH IDLUQHVV RI WKH WULDO DQG DQQRXQFHG WKDW KH GLG QRW ZLVK WR SDUWLFLSDWH LQ WKH SURFHHGLQJV HYHQ DV KH
GLVFKDUJHGERWKKLVGHIHQVHFRXQVHORIFKRLFHDQGKLVPLOLWDU\GHIHQVHFRXQVHO
7KH SURFHHGLQJV ZHUH WKHUHXSRQ DGMRXUQHG WR DQRWKHU GD\ ,Q WKH PHDQWLPH IRU WKH SHWLWLRQHU
V DVVXUDQFH D
6SHFLDO&RPPLWWHHFRPSRVHGRIDUHWLUHG-XVWLFHRIWKH6XSUHPH&RXUWWREHGHVLJQDWHGE\WKH&KLHI-XVWLFH
DV&KDLUPDQDQGIRXUPHPEHUVWREHGHVLJQDWHGUHVSHFWLYHO\E\SHWLWLRQHUWKH3UHVLGHQWRIWKH,QWHJUDWHG
%DU RI WKH 3KLOLSSLQHV WKH 6HFUHWDU\ RI -XVWLFH DQG WKH 6HFUHWDU\ RI 1DWLRQDO 'HIHQVH ZDV FUHDWHG WR
UHLQYHVWLJDWH WKH FKDUJHV DJDLQVW SHWLWLRQHU 7KH 6HFUHWDULHV RI -XVWLFH DQG 1DWLRQDO 'HIHQVH GHVLJQDWHG WKHLU
UHSUHVHQWDWLYHVEXWWKHSHWLWLRQHUUHIXVHGWRQDPHKLV7KH&KLHI-XVWLFHDVNHGIRUPHU-XVWLFH-%/5H\HVEXW
WKHODWWHUGHFOLQHGDVKHDOVRGHFOLQHGLQKLVFDSDFLW\DV3UHVLGHQWRIWKH,%3WRGHVLJQDWHDUHSUHVHQWDWLYHWRWKH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
&RPPLWWHH $V D UHVXOW ZLWK RQO\ WZR RI LWV PHPEHUV GHVLJQHG WKH 6SHFLDO &RPPLWWHH KDV QRW EHHQ DEOH WR
IXQFWLRQ
2Q 6HSWHPEHU D VXSSOHPHQWDO SHWLWLRQ DOOHJLQJ WKH FUHDWLRQ RI WKH 6SHFLDO &RPPLWWHH DQG TXHVWLRQLQJ
WKH OHJDOLW\ RI LWV FUHDWLRQ ZDV ILOHG 7KH &KLHI -XVWLFH RI WKH 6XSUHPH &RXUW DQG WKH 6HFUHWDU\ RI -XVWLFH ZHUH
LQFOXGHGDVUHVSRQGHQWV6XEVHTXHQWO\WKH&RXUWUHVROYHGWRUHTXLUHWKHUHVSRQGHQWVWRILOHWKHLUDQVZHUDQGRQ
$XJXVWZLWKLQWKHH[WHQGHGSHULRGJUDQWHGE\WKH&RXUWUHVSRQGHQWVZLWKWKHH[FHSWLRQRIWKH&KLHI
-XVWLFHILOHGWKHLUDQVZHUWRWKHVXSSOHPHQWDOSHWLWLRQ
7KHUHDIWHU SHWLWLRQHU ZDV UHTXLUHG WR ILOH D UHSO\ DQG ZDV JUDQWHG DGGLWLRQDO WLPH DIWHU WKH ODSVH RI WKH RULJLQDO
SHULRGEXWLQVWHDGRIGRLQJVRSHWLWLRQHUDVNHGIRUWKHDGPLVVLRQRIDVHFRQGVXSSOHPHQWDOSHWLWLRQFKDOOHQJLQJ
WKHFRQWLQXHGHQIRUFHPHQWRIPDUWLDOODZLQWKH3KLOLSSLQHVLQWKHOLJKWRI3UHVLGHQWLDOVWDWHPHQWVWRWKHHIIHFWWKDW
ZLWKWKHFRPLQJLQWRIRUFHRIWKHQHZ&RQVWLWXWLRQRQ-DQXDU\PDUWLDOODZZDVWHFKQLFDOO\DQGOHJDOO\
OLIWHG7RWKLVSHWLWLRQUHVSRQGHQWVDQVZHUHG7KHUHDIWHUWKHSDUWLHVVXEPLWWHGWKHLUUHVSHFWLYHPHPRUDQGDLQOLHX
RIRUDODUJXPHQWDVSHU5HVROXWLRQRIWKLV&RXUWRQ-DQXDU\
2Q 0DUFK SHWLWLRQHU ILOHG DQ 8UJHQW 0RWLRQ IRU ,VVXDQFH RI 7HPSRUDU\ 5HVWUDLQLQJ 2UGHU $JDLQVW
0LOLWDU\&RPPLVVLRQ1RSUD\LQJWKDWVDLG&RPPLVVLRQEHSURKLELWHGIURPSURFHHGLQJZLWKWKHSHUSHWXDWLRQRI
WHVWLPRQ\ XQGHU LWV 2UGHU GDWHG 0DUFK WKH VDPH EHLQJ LOOHJDO XQWLO IXUWKHU RUGHUV IURP WKH 6XSUHPH
&RXUW
2Q0DUFKUHVSRQGHQWVILOHGWKHLU&RPPHQWWRSHWLWLRQHU
VDIRUHPHQWLRQHGXUJHQWPRWLRQZKLFKPRWLRQ
DQGRWKHUUHODWHGLQFLGHQWVZHUHVHWIRUKHDULQJRQ$SULODWDPDVSHU5HVROXWLRQRIWKLV&RXUWRQ
$SULO
0HDQZKLOH RU RQ $SULO WKLV &RXUW LVVXHG D 5HVROXWLRQ VWDWLQJ WKDW IRU ODFN RI D QHFHVVDU\ TXRUXP LW
FRXOG QRW DFW RQ SHWLWLRQHU
V 8UJHQW 0RWLRQ IRU ,VVXDQFH RI WHPSRUDU\ 5HVWUDLQLQJ 2UGHU $JDLQVW 0LOLWDU\
&RPPLVVLRQ1RLQDVPXFKDVWKLVFDVHLQYROYHGDFRQVWLWXWLRQDOTXHVWLRQ
2Q$SULOSHWLWLRQHUILOHGD0DQLIHVWDWLRQVWDWLQJDPRQJRWKHUVWKDWWKH8UJHQW0RWLRQGLGQRWDQGGRHV
QRWLQYROYHDFRQVWLWXWLRQDOTXHVWLRQIRUUHDVRQVVWDWHGWKHUHLQ
2Q $SULO UHVSRQGHQWV ILOHG WKHLU 5HSO\ WR 3HWLWLRQHU
V 0DQLIHVWDWLRQ IROORZHG E\ 5HVSRQGHQWV
0DQLIHVWDWLRQ ILOHG RQ $SULO DWWDFKLQJ WKHUHWR IRXUWHHQ VZRUQ VWDWHPHQWV RI ZLWQHVVHV ZKRVH
WHVWLPRQLHVDUHVRXJKWWREHSHUSHWXDWHG
2Q $SULO WKLV &RXUW DOVR LVVXHG D UHVWUDLQLQJ RUGHU DJDLQVW UHVSRQGHQW 0LOLWDU\ &RPPLVVLRQ 1R
UHVWUDLQLQJ LW IURP IXUWKHU SURFHHGLQJ ZLWK WKH SHUSHWXDWLRQ RI WHVWLPRQ\ XQGHU LWV 2UGHU GDWHG 0DUFK
XQWLOWKHPDWWHULVKHDUGDQGIXUWKHURUGHUVDUHLVVXHG
$IWHU WKH KHDULQJ WKLV &RXUW 5HVROYHG D WR UHTXLUH WKH 6ROLFLWRU *HQHUDO WR IXUQLVK WKH &RXUW DV ZHOO DV WKH
SHWLWLRQHUDQGWKHODWWHU
VFRXQVHOZLWKFRSLHVRIWKHWUDQVFULSWRIDOOWKHVWHQRJUDSKLFQRWHVWDNHQDWWKHKHDULQJ
EHIRUHWKH0LOLWDU\&RPPLVVLRQ1RIRUWKHSHUSHWXDWLRQRIWKHWHVWLPRQ\RIWKHZLWQHVVHVIRUWKHSURVHFXWLRQLQ
YDULRXV FULPLQDO FDVHV ILOHG DJDLQVW KHUHLQ SHWLWLRQHU ZLWKLQ ILYH GD\V IURP WRGD\ E WR UHTXHVW WKH 6ROLFLWRU
*HQHUDODQGWKH$)3-XGJH$GYRFDWH*HQHUDOWRPDNHWKHQHFHVVDU\DUUDQJHPHQWVIRUWKHSHWLWLRQHUWRFRQIHU
ZLWK KLV FRXQVHO RQ PDWWHUV FRQQHFWHG ZLWK WKH DIRUHPHQWLRQHG PRWLRQ WR ZLWKGUDZ F WR DOORZ FRXQVHO IRU WKH
SHWLWLRQHU LI WKH\ VR GHVLUH WR ILOH D PDQLIHVWDWLRQ LQ DPSOLFDWLRQ RI WKH DIRUHVDLG PRWLRQ WR ZLWKGUDZ ZLWKLQ WHQ
GD\V IURP WKH GDWH WKH\ FRQIHU ZLWK WKH SHWLWLRQHU DQG WKHUHDIWHU WR DOORZ WKH 6ROLFLWRU *HQHUDO WR ILOH D
FRXQWHUPDQLIHVWDWLRQZLWKLQWHQGD\VIURPUHFHLSWRIDFRS\WKHUHRIDQGGWRFRQVLGHUWKHFDVHVXEPLWWHG
IRUGHFLVLRQDIWHUVXEPLVVLRQE\ERWKSDUWLHVRIWKHLUUHVSHFWLYHSOHDGLQJVRQWKHPRWLRQWRZLWKGUDZ
6XEVHTXHQWO\WKHSDUWLHVPDQLIHVWHGWKHLUFRPSOLDQFH
7KH-XVWLFHZKRYRWHGWRGHQ\WKHZLWKGUDZDODUHRIWKHRSLQLRQWKDWVLQFHDOOPDWWHUVLQLVVXHLQWKLVFDVHKDYH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
DOUHDG\ EHHQ VXEPLWWHG IRU UHVROXWLRQ DQG WKH\ DUH RI SDUDPRXQW SXEOLF LQWHUHVW LW LV LPSHUDWLYH WKDW WKH
TXHVWLRQV UDLVHG E\ SHWLWLRQHU RQ WKH FRQVWLWXWLRQDOLW\ DQG OHJDOLW\ RI SURFHHGLQJV DJDLQVW FLYLOLDQV LQ WKH PLOLWDU\
FRPPLVVLRQV SXUVXDQW WR SHUWLQHQW *HQHUDO 2UGHUV 3UHVLGHQWLDO 'HFUHHV DQG /HWWHUV RI ,QVWUXFWLRQ VKRXOG EH
GHILQLWHO\UHVROYHG
,QUHJDUGWRWKHPHULWV:H5HVROYHE\DYRWHRIHLJKW-XVWLFHVWRGLVPLVVWKHPDLQDVZHOODVWKHVXSSOHPHQWDO
SHWLWLRQV
,,
0,/,7$5<&200,66,216
:H KDYH WKDW WKH UHVSRQGHQW 0LOLWDU\ &RPPLVVLRQ 1R KDV EHHQ ODZIXOO\ FRQVWLWXWHG DQG YDOLGO\ YHVWHG ZLWK
MXULVGLFWLRQWRKHDUWKHFDVHVDJDLQVWFLYLOLDQVLQFOXGLQJWKHSHWLWLRQHU
7R SUHVHUYH WKH VDIHW\ RI WKH QDWLRQ LQ WLPHV RI QDWLRQDO SHULO WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV QHFHVVDULO\
SRVVHVVHVEURDGDXWKRULW\FRPSDWLEOHZLWKWKHLPSHUDWLYHUHTXLUHPHQWVRIWKHHPHUJHQF\2QWKHEDVLVRIWKLVKH
KDVDXWKRUL]HGLQ*HQHUDO2UGHU1R6HSWHPEHUWKH&RXUWRI6WDII$UPHG)RUFHVRIWKH3KLOLSSLQHV
WRFUHDWHPLOLWDU\WULEXQDOVWRWU\DQGGHFLGHFDVHVRIPLOLWDU\SHUVRQQHODQGVXFKRWKHUFDVHVDVPD\EHUHIHUUHG
WR WKHP ,Q *HQHUDO 2UGHU 1R 6HSWHPEHU WKH PLOLWDU\ WULEXQDOV ZHUH YHVWHG ZLWK MXULVGLFWLRQ
H[FOXVLYH RI WKH FLYLO FRXUWV DPRQJ RWKHUV RYHU FULPHV DJDLQVW SXEOLF RUGHU YLRODWLRQV RI WKH $QWL6XEYHUVLRQ
$FWYLRODWLRQVRIWKHODZVRQILUHDUPVDQGRWKHUFULPHVZKLFKLQWKHIDFHRIWKHHPHUJHQF\DUHGLUHFWO\UHODWHG
WR WKH TXHOOLQJ RI WKH UHEHOOLRQ DQG SUHVHUYDWLRQ RI WKH VDIHW\ DQG VHFXULW\ RI WKH 5HSXEOLF ,Q RUGHU WR HQVXUH D
PRUHRUGHUO\DGPLQLVWUDWLRQRIMXVWLFHLQWKHFDVHVWULDEOHE\WKHVDLGPLOLWDU\WULEXQDOV3UHVLGHQWLDO'HFUHH1R
ZDV SURPXOJDWHG RQ 1RYHPEHU SURYLGLQJ IRU WKH 5XOHV *RYHUQLQJ WKH &UHDWLRQ &RPSRVLWLRQ
-XULVGLFWLRQ3URFHGXUHDQG2WKHU0DWWHUV5HOHYDQWWR0LOLWDU\7ULEXQDOV7KHVHPHDVXUHVKHKDVWKHDXWKRULW\WR
SURPXOJDWHVLQFHWKLV&RXUWUHFRJQL]HGWKDWWKHLQFXPEHQW3UHVLGHQWXQGHUSDUDJUDSKVDQGRI6HFWLRQRI
$UWLFOH ;9,, RI WKH QHZ &RQVWLWXWLRQ KDG WKH DXWKRULW\ WR SURPXOJDWH SURFODPDWLRQV RUGHUV DQG GHFUHHV GXULQJ
WKHSHULRGRIPDUWLDOODZHVVHQWLDOWRWKHVHFXULW\DQGSUHVHUYDWLRQRIWKH5HSXEOLFWRWKHGHIHQVHRIWKHSROLWLFDO
DQG VRFLDO OLEHUWLHV RI WKH SHRSOH DQG WR WKH LQVWLWXWLRQ RI UHIRUPV WR SUHYHQW WKH UHVXUJHQFH RI WKH UHEHOOLRQ RU
LQVXUUHFWLRQRUVHFHVVLRQRUWKHWKUHDWWKHUHRI3XUVXDQWWRWKHDIRUHVDLG6HFWLRQ>@DQG>@RI$UWLFOH;9,,RIWKH
&RQVWLWXWLRQ*HQHUDO2UGHUV1RGDWHG6HSWHPEHUDXWKRUL]LQJWKHFUHDWLRQRIPLOLWDU\WULEXQDOV1RGDWHG
6HSWHPEHU GHILQLQJ WKH MXULVGLFWLRQ RI PLOLWDU\ FULPLQDOV DQG SURYLGLQJ IRU WKH WUDQVIHU IURP WKH FLYLO FRXUWV WR
PLOLWDU\ WULEXQDOV RI FDVHV LQYROYLQJ VXEYHUVLRQ VHGLWLRQ LQVXUUHFWLRQ RU UHEHOOLRQ HWF DQG 1R GDWHG 1RYHPEHU
DVDPHQGHGSUHVFULELQJWKHSURFHGXUHVEHIRUHPLOLWDU\WULEXQDOVDUHQRZSDUWRIWKHODZRIWKHODQG
3HWLWLRQHUQHYHUWKHOHVVLQVLVWVWKDWKHEHLQJDFLYLOLDQKLVWULDOE\DPLOLWDU\FRPPLVVLRQGHSULYHVKLPRIKLVULJKW
WRGXHSURFHVVVLQFHLQKLVYLHZWKHGXHSURFHVVJXDUDQWHHGE\WKH&RQVWLWXWLRQWRSHUVRQVDFFXVHGRIRUGLQDU\
FULPHVPHDQVMXGLFLDOSURFHVV7KLVDUJXPHQWLJQRUHVWKHUHDOLW\RIWKHUHEHOOLRQDQGWKHH[LVWHQFHRIPDUWLDOODZ
,W LV RI FRXUVH HVVHQWLDO WKDW LQ D PDUWLDO ODZ VLWXDWLRQ WKH PDUWLDO ODZ DGPLQLVWUDWRU PXVW KDYH DPSOH DQG
VXIILFLHQW PHDQV WR TXHOO WKH UHEHOOLRQ DQG UHVWRUH FLYLO RUGHU 3URPSW DQG HIIHFWLYH WULDO DQG SXQLVKPHQW RI
RIIHQGHUV KDYH EHHQ FRQVLGHUHG DV QHFHVVDU\ LQ D VWDWH RI PDUWLDO ODZ DV D PHUH SRZHU RI GHWHQWLRQ PD\ EH
ZKROO\LQDGHTXDWHIRUWKHH[LJHQF\,WQHHGKDUGO\EHUHPDUNHGWKDWPDUWLDOODZODZIXOO\GHFODUHGREVHUYHG:LQWKURSFUHDWHVDQH[FHSWLRQ
WRWKHJHQHUDOUXOHRIH[FOXVLYHVXEMHFWLRQWRWKHFLYLOMXULVGLFWLRQDQGUHQGHUVRIIHQVHVDJDLQVWWKHODZVRIZDUDVZHOODVWKRVHRIDFLYLOFKDUDFWHUWULDEOH
DWWKHGLVFUHWLRQRIWKHFRPPDQGHUDVJRYHUQHGE\DFRQVLGHUDWLRQIRUWKHSXEOLFLQWHUHVWVDQGWKHGXHDGPLQLVWUDWLRQRIMXVWLFHE\PLOLWDU\WULEXQDOV
,QGHHG LW KDV EHHQ VDLG WKDW LQ WLPH RI RYHUSRZHULQJ QHFHVVLW\ SXEOLF GDQJHU ZDUUDQWV WKH VXEVWLWXWLRQ RI
H[HFXWLYH SURFHVV IRU MXGLFLDO SURFHVV $FFRUGLQJ WR 6FKZDUW] 7KH LPPXQLW\ RI FLYLOLDQV IURP PLOLWDU\ MXULVGLFWLRQ
PXVW KRZHYHU JLYH ZD\ LQ DUHDV JRYHUQHG E\ PDUWLDO ODZ :KHQ LW LV DEVROXWHO\ LPSHUDWLYH IRU SXEOLF VDIHW\ OHJDO
SURFHVVHVFDQEHVXSHUVHGHGDQGPLOLWDU\WULEXQDOVDXWKRUL]HGWRH[HUFLVHWKHMXULVGLFWLRQQRUPDOO\YHVWHGLQFRXUW
,QDQ\FDVH:HFDQQRWFORVH2XUH\HVWRWKHIDFWWKDWWKHFRQWLQXHGH[LVWHQFHRIWKHVHPLOLWDU\WULEXQDOVDQGWKH
H[HUFLVH E\ WKHP RI MXULVGLFWLRQ RYHU FLYLOLDQV GXULQJ WKH SHULRG RI PDUWLDO ODZ DUH ZLWKLQ WKH FRQWHPSODWLRQ DQG
LQWHQGPHQW RI 6HFWLRQ SDUDJUDSK RI $UWLFOH ;9,, RI WKH &RQVWLWXWLRQ 7KHVH DUH WULEXQDOV RI VSHFLDO DQG
UHVWULFWHGMXULVGLFWLRQFUHDWHGXQGHUWKHVWUHVVRIDQHPHUJHQF\DQGQDWLRQDOVHFXULW\7KLVLVWKHRQO\ORJLFDOZD\
WRFRQVWUXHVDLG6HFWLRQSDUDJUDSKRI$UWLFOH;9,,RIWKH&RQVWLWXWLRQLQUHODWLRQWR*HQHUDO2UGHU1RV
DQGLQWKHFRQWH[WRIFRQWHPSRUDU\KLVWRU\DQGWKHFLUFXPVWDQFHVDWWHQGDQWWRWKHIUDPLQJRIWKHQHZFKDUWHU
:KHQLWKDVEHHQHVWDEOLVKHGWKDWPDUWLDOODZLVLQIRUFHWKHUHVSRQVLELOLW\IRUDOODFWVGRQHWKHUHXQGHUPXVWEH
WDNHQ E\ WKH DXWKRULWLHV DGPLQLVWHULQJ LW ,W LV D VHULRXV UHVSRQVLELOLW\ ZKLFK PHULWV WKH FRRSHUDWLRQ RI DOO LQ WKH
FROOHFWLYHGHVLUHIRUWKHUHVWRUDWLRQRIFLYLORUGHU,QWKHFDVHDWEDUSHWLWLRQHULVFKDUJHGZLWKKDYLQJFRQVSLUHGZLWKFHUWDLQ
PLOLWDU\ OHDGHUV RI WKH FRPPXQLVW UHEHOOLRQ WR RYHUWKURZ WKH JRYHUQPHQW IXUQLVKLQJ WKHP DUPV DQG RWKHU LQVWUXPHQWV WR
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
IXUWKHU WKH XSULVLQJ 7KHUH LV QR TXHVWLRQ WKDW WKH FRQWLQXLQJ FRPPXQLVW UHEHOOLRQ ZDV RQH RI WKH JUDYH WKUHDWV WR WKH
5HSXEOLF WKDW EURXJKW DERXW WKH PDUWLDO ODZ VLWXDWLRQ 8QGHU *HQHUDO 2UGHU 1R MXULVGLFWLRQ RYHU WKLV RIIHQVH KDV EHHQ
YHVWHG H[FOXVLYHO\ XSRQ PLOLWDU\ WULEXQDOV ,W FDQQRW EH VDLG WKDW SHWLWLRQHU KDV EHHQ VLQJOHG RXW IRU WULDO IRU WKLV RIIHQVH
EHIRUH WKH PLOLWDU\ FRPPLVVLRQ 3XUVXDQW WR *HQHUDO 2UGHU 1R DOO FULPLQDO FDVHV LQYROYLQJ VXEYHUVLRQ VHGLWLRQ
LQVXUUHFWLRQ RU UHEHOOLRQ RU WKRVH FRPPLWWHG LQ IXUWKHUDQFH RI RQ WKH RFFDVLRQ RI LQFLGHQW WR RU LQ FRQQHFWLRQ ZLWK WKH
FRPPLVVLRQ RI VDLG FULPHV ZKLFK ZHUH SHQGLQJ LQ WKH FLYLO FRXUWV ZHUH RUGHUHG WUDQVIHUUHG WR WKH PLOLWDU\ WULEXQDOV 7KLV
MXULVGLFWLRQRIWKHWULEXQDOWKHUHIRUHRSHUDWHVHTXDOO\RQDOOSHUVRQVLQOLNHFLUFXPVWDQFHV
+HUH WKH SURFHGXUH EHIRUH WKH 0LOLWDU\ &RPPLVVLRQ DV SUHVFULEHG LQ 3UHVLGHQWLDO 'HFUHH 1R DVVXUHV
REVHUYDQFHRIWKHIXQGDPHQWDOUHTXLVLWHVRISURFHGXUDOGXHSURFHVVGXHQRWLFHDQHVVHQWLDOO\IDLUDQGLPSDUWLDO
WULDODQGUHDVRQDEOHRSSRUWXQLW\IRUWKHSUHSDUDWLRQRIWKHGHIHQVH
,WLVKRZHYHUDVVHUWHGWKDWSHWLWLRQHU
VWULDOEHIRUHWKHPLOLWDU\FRPPLVVLRQZLOOQRWEHIDLUDQGLPSDUWLDODVWKH
3UHVLGHQW KDG DOUHDG\ SUHMXGJHG SHWLWLRQHU
V FDVHV DQG WKH PLOLWDU\ WULEXQDO LV D PHUH FUHDWLRQ RI WKH 3UHVLGHQW
DQG VXEMHFW WR KLV FRQWURO DQG GLUHFWLRQ :H FDQQRW KRZHYHU LQGXOJH LQ XQMXVWLILHG DVVXPSWLRQV 3UHMXGLFH
FDQQRWEHSUHVXPHGHVSHFLDOO\LIZHLJKHGDJDLQVWWKHJUHDWFRQILGHQFHDQGWUXVWUHSRVHGE\WKHSHRSOHXSRQWKH
3UHVLGHQW DQG WKH ODWWHU
V OHJDO REOLJDWLRQ XQGHU KLV RDWK WR GR MXVWLFH WR HYHU\ PDQ 1RU LV LW MXVWLILDEOH WR
FRQFHLYH PXFK OHVV SUHVXPH WKDW WKH PHPEHUV RI WKH PLOLWDU\ FRPPLVVLRQ WKH &KLHI RI 6WDII RI WKH $UPHG
)RUFHV RI WKH 3KLOLSSLQHV WKH %RDUG RI 5HYLHZ DQG WKH 6HFUHWDU\ RI 1DWLRQDO 'HIHQVH ZLWK WKHLU FRUUHVSRQGLQJ
VWDII MXGJH DGYRFDWHV DV UHYLHZLQJ DXWKRULWLHV WKURXJK ZKRP SHWLWLRQHU
V K\SRWKHWLFDO FRQYLFWLRQ ZRXOG EH
UHYLHZHGEHIRUHUHDFKLQJWKH3UHVLGHQWZRXOGDOOEHLQVHQVLWLYHWRWKHJUHDWSULQFLSOHVRIMXVWLFHDQGYLRODWHWKHLU
UHVSHFWLYHREOLJDWLRQVWRDFWIDLUO\DQGLPSDUWLDOO\LQWKHSUHPLVHV
7KLV DVVXPSWLRQ PXVW EH PDGH EHFDXVH LQQRFHQFH QRW ZURQJGRLQJ LV WR EH SUHVXPHG 7KH SUHVXPSWLRQ RI
LQQRFHQFHLQFOXGHVWKDWRIJRRGIDLWKIDLUGHDOLQJDQGKRQHVW\7KLVSUHVXPSWLRQLVDFFRUGHGWRHYHU\RIILFLDORI
WKHODQGLQWKHSHUIRUPDQFHRIKLVSXEOLFGXW\7KHUHLVQRUHDVRQZK\VXFKSUHVXPSWLRQFDQQRWEHDFFRUGHGWR
WKH3UHVLGHQWRIWKH3KLOLSSLQHVXSRQZKRPWKHSHRSOHGXULQJWKLVSHULRGKDVFRQILGHGSRZHUVDQGUHVSRQVLELOLWLHV
ZKLFKDUHRIDYHU\KLJKDQGGHGLFDWHQDWXUH7KHSUHVHUYDWLRQRIWKHULJKWVJXDUDQWHHGE\WKH&RQVWLWXWLRQUHVWV
DW ERWWRP H[DFWO\ ZKHUH WKH GHIHQVH RI WKH QDWLRQ UHVWV LQ WKH JRRG VHQVH DQG JRRG ZLOO RI WKH RIILFLDOV XSRQ
ZKRPWKH&RQVWLWXWLRQKDVSODFHGWKHUHVSRQVLELOLW\RIHQVXULQJWKHVDIHW\RIWKHQDWLRQLQWLPHVRIQDWLRQDOSHULO
,,,
$'0,1,675$7,9(25'(512
3HWLWLRQHU KRZHYHU REMHFWHG E\ FKDOOHQJLQJ LQ KLV VXSSOHPHQWDO SHWLWLRQ EHIRUH WKLV &RXUW WKH YDOLGLW\ RI
$GPLQLVWUDWLYH2UGHU1RRQWKHSUHWHQVHWKDWE\VXEPLWWLQJWRWKHMXULVGLFWLRQRIWKH6SHFLDO&RPPLWWHHKH
ZRXOG EH ZDLYLQJ KLV ULJKW WR FURVVH[DPLQDWLRQ EHFDXVH 3UHVLGHQWLDO 'HFUHH 1R ZKLFK DSSOLHV WR WKH
SURFHHGLQJVRIWKH6SHFLDO&RPPLWWHHKDVGRQHDZD\ZLWKFURVVH[DPLQDWLRQLQSUHOLPLQDU\LQYHVWLJDWLRQ
7KHLQILUPLW\RIWKLVFRQWHQWLRQLVDSSDUHQWIURPWKHIDFWWKDWWKHFRPPLWWHHVKDOOKDYHDOOWKHSRZHUVYHVWHGE\
ODZ LQ RIILFLDOV DXWKRUL]HG WR FRQGXFW SUHOLPLQDU\ LQYHVWLJDWLRQV :H KDYH KHOG DV LPSOLFLW LQ WKH SRZHU RI WKH
LQYHVWLJDWLQJ)LVFDORU-XGJHLQWKHGLVFKDUJHRIKLVJUDYHUHVSRQVLELOLW\RIDVFHUWDLQLQJWKHH[LVWHQFHRISUREDEOH
FDXVH LV KLV ULJKW WR FURVVH[DPLQH WKH ZLWQHVVHV VLQFH FURVVH[DPLQDWLRQ ZKHWKHU E\ WKH MXGJH RU E\ WKH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
SURVHFXWLRQVXSSOLHVWKHJDSE\SHUPLWWLQJDQLQVWDQWFRQWUDVWRIIDOVHKRRGVDQGRSSRVLQJKDOIWUXWKVPL[HGZLWK
HOHPHQWVRIWUXWKIURPZKLFKWKHH[DPLQLQJMXGJHRURIILFHULVEHWWHUDEOHWRIRUPDFRUUHFWV\QWKHVLVRIWKHUHDO
IDFWV
,9
35(/,0,1$5<,19(67,*$7,21
,WLVDOVRHYLGHQWWKDWWKHUHLVQRFXUWDLOPHQWRIWKHFRQVWLWXWLRQDOULJKWRIDQDFFXVHGSHUVRQZKHQKHLVQRWJLYHQ
WKHRSSRUWXQLW\WRFURVVH[DPLQHWKHZLWQHVVHVSUHVHQWHGDJDLQVWKLPLQWKHSUHOLPLQDU\LQYHVWLJDWLRQEHIRUHKLV
DUUHVWWKLVEHLQJDPDWWHUWKDWGHSHQGVRQWKHVRXQGGLVFUHWLRQRIWKH-XGJHRULQYHVWLJDWLQJRIILFHUFRQFHUQHG
6SHDNLQJIRUWKH&RXUW-XVWLFH7XDVRQLQ%XVWRVY/XFHURGLVFXVVHGWKHPDWWHUH[WHQVLYHO\WKXV Wr x vK T Z k
$VDSSOLHGWRFULPLQDOODZVXEVWDQWLYHODZLVWKDWZKLFKGHFODUHVZKDWDFWVDUHFULPHVDQGSUHVFULEHV
WKH SXQLVKPHQW IRU FRPPLWWLQJ WKHP DV GLVWLQJXLVKHG IURP WKH SURFHGXUDO ODZ ZKLFK SURYLGHV RU
UHJXODWHVWKHVWHSVE\ZKLFKRQHZKRFRPPLWVDFULPHLVWREHSXQLVKHG&-63UHOLPLQDU\
LQYHVWLJDWLRQLVHPLQHQWO\DQGHVVHQWLDOO\UHPHGLDOLWLVWKHILUVWVWHSWDNHQLQDFULPLQDOSURVHFXWLRQ
$VDUXOHRIHYLGHQFHVHFWLRQRI5XOHLVDOVRSURFHGXUDO(YLGHQFH²ZKLFKLV
WKHPRGHDQG
PDQQHU RI SURYLQJ WKH FRPSHWHQW IDFWV DQG FLUFXPVWDQFHV RQ ZKLFK D SDUW\ UHOLHV WR HVWDEOLVK WKH
IDFWLQGLVSXWHLQMXGLFLDOSURFHHGLQJV
²LVLGHQWLILHGZLWKDQGIRUPVSDUWRIWKHPHWKRGE\ZKLFKLQ
SULYDWH ODZ ULJKWV DUH HQIRUFHG DQG UHGUHVV REWDLQHG DQG LQ FULPLQDO ODZ D ODZ WUDQVJUHVVRU LV
SXQLVKHG&ULPLQDOSURFHGXUHUHIHUVWRSOHDGLQJHYLGHQFHDQGSUDFWLFH6WDWHYV&DSDFL6R
/D7KHHQWLUHUXOHVRIHYLGHQFHKDYHEHHQLQFRUSRUDWHGLQWRWKH5XOHVRI&RXUW:H
FDQ QRW WHDU GRZQ VHFWLRQ RI 5XOH RQ FRQVWLWXWLRQDO JURXQGV ZLWKRXW WKURZLQJ RXW WKH ZKROH
FRGHRIHYLGHQFHHPERGLHGLQWKHVH5XOHV
,Q%HD]HLOYV2KLR86/DZHGWKH8QLWHG6WDWHV6XSUHPH&RXUWVDLG Wr x vK T Z k
([SUHVVLRQV DUH WR EH IRXQG LQ HDUOLHU MXGLFLDO RSLQLRQV WR WKH HIIHFW WKDW WKH
FRQVWLWXWLRQDO OLPLWDWLRQ PD\ EH WUDQVJUHVVHG E\ DOWHUDWLRQV LQ WKH UXOHV RI HYLGHQFH RU
SURFHGXUH6HH&DOGHU%XOO'DOO/HG&XPPLQJVYV0LVVRXUL
:DOO/HG.ULQJ0LVVRXUL86/HG
6XS &W 5HS $QG WKHUH PD\ EH SURFHGXUDO FKDQJHV ZKLFK
RSHUDWHWRGHQ\WRWKHDFFXVHGDGHIHQVHDYDLODEOHXQGHUWKHODZVLQIRUFHDWWKHWLPHRI
WKH FRPPLVVLRQ RI KLV RIIHQVH RU ZKLFK RWKHUZLVH DIIHFW KLP LQ VXFK D KDUVK DQG
DUELWUDU\ PDQQHU DV WR IDOO ZLWKLQ WKH FRQVWLWXWLRQDO SURKLELWLRQ .ULQJ YV 0LVVRXUL
86/HG6XS&W5HS7KRPSVRQYV8WDK86/
HG6XS&W5HS%XWLWLVQRZZHOOVHWWOHGWKDWVWDWXWRU\FKDQJHVLQWKH
PRGH RI WULDO RU WKH UXOHV RI HYLGHQFH ZKLFK GR QRW GHSULYH WKH DFFXVHG RI D GHIHQVH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
DQGZKLFKRSHUDWHRQO\LQDOLPLWHGDQGXQVXEVWDQWLDOPDQQHUWRKLVGLVDGYDQWDJHDUH
QRWSURKLELWHG$VWDWXWHZKLFKDIWHULQGLFWPHQWHQODUJHVWKHFODVVRISHUVRQVZKRPD\
EHZLWQHVVHVDWWKHWULDOE\UHPRYLQJWKHGLVTXDOLILFDWLRQRISHUVRQVFRQYLFWHGRIIHORQ\
LVQRWDQH[SRVWIDFWRODZ+RSWYV8WDK86/HG6XS&W5HS
$P&ULPH5HS1RULVDVWDWXWHZKLFKFKDQJHVWKHUXOHVRIHYLGHQFHDIWHU
WKHLQGLFWPHQWVRDVWRUHQGHUDGPLVVLEOHDJDLQVWWKHDFFXVHGHYLGHQFHSUHYLRXVO\KHOG
LQDGPLVVLEOH7KRPSVRQ0LVVRXUL86/HG6XS&W5HS
RU ZKLFK FKDQJHV WKH SODFH RI WULDO *XW YV 0LQQHVRWD :DOO / HG RU
ZKLFK DEROLVKHV D FRXUW IRU KHDULQJ FULPLQDO DSSHDOV FUHDWLQJ D QHZ RQH LQ LWV VWHDG
6HH 'XQFDQ YV 0LVVRXUL 86 / HG 6XS &W 5HS
7HVWHG E\ WKLV VWDQGDUG ZH GR QRW EHOLHYH WKDW WKH FXUWDLOPHQW RI WKH ULJKW RI DQ DFFXVHG LQ D
SUHOLPLQDU\ LQYHVWLJDWLRQ WR FURVVH[DPLQH WKH ZLWQHVV ZKR KDG JLYHQ HYLGHQFH IRU KLV DUUHVW LV RI
VXFKLPSRUWDQFHDVWRRIIHQGDJDLQVWWKHFRQVWLWXWLRQDOLQKLELWLRQ$VZHKDYHVDLGLQWKHEHJLQQLQJ
SUHOLPLQDU\LQYHVWLJDWLRQLVQRWDQHVVHQWLDOSDUWRIGXHSURFHVVRIODZ,WPD\EHVXSSUHVVHGHQWLUHO\
DQGLIWKLVPD\EHGRQHPHUHUHVWULFWLRQRIWKHSULYLOHJHIRUPHUO\HQMR\HGWKHUHXQGHUFDQQRWEHKHOG
WRIDOOZLWKLQWKHFRQVWLWXWLRQDOSURKLELWLRQ
,QUHMHFWLQJWKHFRQWHQWLRQRIWKHSROLWLFDORIIHQGHUVDFFXVHGLQWKH3HRSOH
V&RXUWWKDWWKHLUFRQVWLWXWLRQDOULJKWWR
HTXDOSURWHFWLRQRIWKHODZVZDVLPSDLUHGEHFDXVHWKH\ZHUHGHQLHGSUHOLPLQDU\H[DPLQDWLRQDQGLQYHVWLJDWLRQ
ZKHUHDV WKH RWKHUV ZKR PD\ EH DFFXVHG RI WKH VDPH FULPHV LQ WKH &RXUW RI )LUVW ,QVWDQFH VKDOO EH HQWLWOHG
WKHUHWRWKLV&RXUWVDLG Wr x
vK T Z k
6HFWLRQLQGHQ\LQJSUHOLPLQDU\LQYHVWLJDWLRQWRSHUVRQVDFFXVHGEHIRUHWKH3HRSOH
V&RXUWLV
MXVWLILHG E\ WKH FRQGLWLRQV SUHYDLOLQJ ZKHQ WKH ODZ ZDV HQDFWHG ,Q YLHZ RI WKH JUHDW QXPEHU RI
SULVRQHUVWKHQXQGHUGHWHQWLRQDQGWKHOHQJWKRIWLPHDQGDPRXQWRIODERUWKDWZRXOGEHFRQVXPHGLI
VR PDQ\ SULVRQHUV ZHUH DOORZHG WKH ULJKW WR KDYH SUHOLPLQDU\ LQYHVWLJDWLRQ FRQVLGHUHG ZLWK WKH
QHFHVVLW\RIGLVSRVLQJRIWKHVHFDVHVDWWKHHDUOLHVWSRVVLEOHGDWHVLQWKHLQWHUHVWRIWKHSXEOLFDQGRI
WKH DFFXVHG WKHPVHOYHV LW ZDV QRW DQ XQZLVH PHDVXUH ZKLFK GLVSHQVHG ZLWK VXFK LQYHVWLJDWLRQ LQ
VXFKFDVHV3UHOLPLQDU\LQYHVWLJDWLRQLWPXVWEHUHPHPEHUHGLVQRWDIXQGDPHQWDOULJKWJXDUDQWHHG
E\ WKH &RQVWLWXWLRQ )RU WKH UHVW WKH FRQVWLWXWLRQDO SURKLELWLRQ DJDLQVW GLVFULPLQDWLRQ DPRQJ
GHIHQGDQWVSODFHGLQWKHVDPHVLWXDWLRQDQGFRQGLWLRQLVQRWLQIULQJHG
,WZDVUHDOL]HGWKDWWKHSURFHGXUHSUHVFULEHGLQ5HSXEOLF$FW1RJUDQWLQJWKHFRPSODLQDQWDQGUHVSRQGHQW
LQDSUHOLPLQDU\LQYHVWLJDWLRQWKHULJKWWRFURVVH[DPLQHHDFKRWKHUDQGWKHLUZLWQHVVHVZDVWLPHFRQVXPLQJDQG
QRWFRQGXFLYHWRWKHH[SHGLWLRXVDGPLQLVWUDWLRQRIMXVWLFH+HQFHLWZDVIRXQGQHFHVVDU\LQ3UHVLGHQWLDO'HFUHH
1RWRVLPSOLI\WKHSURFHGXUHRISUHOLPLQDU\LQYHVWLJDWLRQWRFRQIRUPWRLWVVXPPDU\FKDUDFWHUE\HOLPLQDWLQJ
WKH FURVVH[DPLQDWLRQ E\ WKH FRQWHQGLQJ SDUWLHV RI WKHLU UHVSHFWLYH ZLWQHVVHV ZKLFK LQ WKH SDVW KDG PDGH WKH
SURFHHGLQJWKHRFFDVLRQIRUWKHIXOODQGH[KDXVWLYHGLVSOD\RISDUWLHV
HYLGHQFH7KHSURFHGXUHSUHVFULEHGLQWKH
DIRUHFLWHG GHFUHHV DSSHDUV MXVWLILHG E\ WKH QHFHVVLW\ RI GLVSRVLQJ FDVHV GXULQJ PDUWLDO ODZ HVSHFLDOO\ WKRVH
DIIHFWLQJQDWLRQDOVHFXULW\DWWKHHDUOLHVWGDWH2QWKHEDVLVRIWKHDIRUHVWDWHGVHWWOHGSULQFLSOHVWKHFXUWDLOPHQWRI
WKH ULJKW RI DQ DFFXVHG WR FURVVH[DPLQH WKH ZLWQHVVHV DJDLQVW KLP LQ WKH SUHOLPLQDU\ LQYHVWLJDWLRQ GRHV QRW
LPSDLUDQ\FRQVWLWXWLRQDOULJKW,WPD\EHUHOHYDQWWRQRWHWKDWUHFHQWO\LQ/LWWRQHWDOY&DVWLOORHWDOWKLV&RXUW
GHQLHGIRUODFNRIPHULWDSHWLWLRQFKDOOHQJLQJWKHYDOLGLW\RI3UHVLGHQWLDO'HFUHH1RLVVXHGRQ'HFHPEHURQWKH
JURXQGWKDWDIRUHVDLGGHFUHHQRZIRUPVSDUWRIWKHODZRIWKHODQG
3(53(78$7,212)7(67,021<
3HWLWLRQHU FODLPV WKDW WKH RUGHU RI WKH 0LOLWDU\ &RPPLVVLRQ IRU WKH SHUSHWXDWLRQ RI WKH WHVWLPRQ\ RI SURVHFXWLRQ
ZLWQHVVHV LV YRLG EHFDXVH QR FRS\ RI WKH SHWLWLRQ ZDV SUHYLRXVO\ VHUYHG RQ KLP +H DVVHUWV WKDW DV D
FRQVHTXHQFH KH ZDV QRW JLYHQ WKH RSSRUWXQLW\ WR FRQWHVW WKH SURSULHW\ RI WKH WDNLQJ RI WKH GHSRVLWLRQ RI WKH
ZLWQHVVHV,WPXVWEHQRWHGWKDWSHWLWLRQHUGRHVQRWGLVSXWHUHVSRQGHQWV
FODLPWKDWRQ0DUFKKHNQHZ
RIWKHRUGHUDOORZLQJWKHWDNLQJRIWKHGHSRVLWLRQRISURVHFXWLRQZLWQHVVHVRQ0DUFKWRFRQWLQXHWKURXJK$SULO
WR
7KH SURYLVLRQV RI 3UHVLGHQWLDO 'HFUHH 1R GDWHG 2FWREHU IRU WKH FRQGLWLRQDO H[DPLQDWLRQ RI
SURVHFXWLRQ ZLWQHVVHV EHIRUH WULDO LV VLPLODU WR WKH SURYLVLRQV RI 6HFWLRQ RI 5XOH RI WKH 5HYLVHG 5XOHV RI
&RXUW3UHVLGHQWLDO'HFUHH1RSURYLGHV Wr x
vK T Z k
:KHUH XSRQ SURSHU DSSOLFDWLRQ LW VKDOO VDWLVIDFWRULO\ DSSHDU WR WKH PLOLWDU\ WULEXQDO EHIRUH ZKLFK D
FDVHLVSHQGLQJWKDWDZLWQHVVIRUWKHSURVHFXWLRQRUWKHGHIHQVHLVWRRVLFNRULQILUPWRDSSHDUDWWKH
WULDORUKDVWROHDYHWKH3KLOLSSLQHVZLWKQRGHILQLWHGDWHRIUHWXUQLQJWKHUHWRRUZKHUHGHOD\LQWKH
WDNLQJ RI LWV WHVWLPRQ\ PD\ UHVXOW LQ WKH IDLOXUH RI MXVWLFH RU DGYHUVHO\ DIIHFW QDWLRQDO VHFXULW\ WKH
ZLWQHVVPD\IRUWKZLWKEHH[DPLQHGDQGKLVGHSRVLWLRQLPPHGLDWHO\WDNHQVXFKH[DPLQDWLRQWREHE\
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
TXHVWLRQDQGDQVZHULQWKHSUHVHQFHRIWKHRWKHUSDUW\RUHYHQLQWKHODWWHU
VDEVHQFHSURYLGHGWKDW
UHDVRQDEOHQRWLFH WR DWWHQG WKH H[DPLQDWLRQ RU WKH WDNLQJ RI WKH GHSRVLWLRQ KDV EHHQ VHUYHG XSRQ
KLPDQGZLOOEHFRQGXFWHGLQWKHVDPHPDQQHUDVDQH[DPLQDWLRQDWWKHWULDOLQZKLFKODWWHUHYHQW
WKHIDLOXUHRUUHIXVDOWRDWWHQGWKHH[DPLQDWLRQRUWKHWDNLQJRIWKHGHSRVLWLRQVKDOOEHFRQVLGHUHGD
ZDLYHU(PSKDVLVVXSSOLHG
6HFWLRQRI5XOHRIWKH5HYLVHG5XOHVSURYLGHV Wr x vK T Z k
'HSRVLWLRQ RI ZLWQHVV IRU WKH SURVHFXWLRQ ² :KHUH KRZHYHU LW VKDOO VDWLVIDFWRULO\ DSSHDU WKDW WKH
ZLWQHVVFDQQRWSURFXUHEDLORULVWRRVLFNRULQILUPWRDSSHDUDWWKHWULDODVGLUHFWHGE\WKHRUGHURI
WKHFRXUWRUKDVWROHDYHWKH3KLOLSSLQHVZLWKQRGHILQLWHGDWHRIUHWXUQLQJWKHUHWRKHPD\IRUWKZLWK
EHFRQGLWLRQDOO\H[DPLQHGRUKLVGHSRVLWLRQLPPHGLDWHO\WDNHQ6XFKH[DPLQDWLRQRUGHSRVLWLRQPXVW
EHE\TXHVWLRQDQGDQVZHULQWKHSUHVHQFHRIWKHGHIHQGDQWRUDIWHUUHDVRQDEOHQRWLFHWRDWWHQGWKH
H[DPLQDWLRQ RU WKH WDNLQJ RI WKH GHSRVLWLRQ KDV EHHQ VHUYHG RQ KLP DQG ZLOO EH FRQGXFWHG LQ WKH
VDPHPDQQHUDVDQH[DPLQDWLRQDWWKHWULDO)DLOXUHRUUHIXVDORQWKHSDUWRIWKHGHIHQGDQWWRDWWHQG
WKH H[DPLQDWLRQ RU WKH WDNLQJ RI WKH GHSRVLWLRQ DIWHU QRWLFH KHUHLQEHIRUH SURYLGHG VKDOO EH
FRQVLGHUHG D ZDLYHU 7KH VWDWHPHQW RU GHSRVLWLRQ RI WKH ZLWQHVV WKXV WDNHQ PD\ EH DGPLWWHG LQ
EHKDOIRIRUDJDLQVWWKHGHIHQGDQW+LVWHVWLPRQ\WDNHQWKHZLWQHVVPXVWWKHUHXSRQEHGLVFKDUJHGLI
KHKDVEHHQGHWDLQHG
7KHIRUHJRLQJZDVWDNHQVXEVWDQWLDOO\IURP6HFWLRQRI5XOHRIWKHROG5XOHVRI&RXUWZLWKWKHGLIIHUHQFH
DPRQJRWKHUVWKDWWKHSKUDVHRUDIWHURQHKRXUQRWLFHLQWKHROG5XOHVRI&RXUWKDVEHHQFKDQJHGWRRUDIWHU
UHDVRQDEOHQRWLFHLQWKH5HYLVHG5XOHVRI&RXUW
,Q(ODJRY3HRSOHWKLV&RXUWLQUHMHFWLQJWKHFRQWHQWLRQWKDWQRZULWWHQPRWLRQZDVILOHGE\WKHSURVHFXWLQJDWWRUQH\IRU
WKHWDNLQJRIWKHGHSRVLWLRQVDQGWKDWOHVVWKDQRQHKRXUQRWLFHKDVEHHQJLYHQWKHGHIHQGDQWKHOGWKDWWKHRQHKRXUQRWLFH
PHQWLRQHGLQ6HFWLRQ5XOHRIWKH5XOHVRI&RXUWZDVLQWHQGHGE\ODZPDLQO\WRJLYHWKHGHIHQGDQWWLPHWRDWWHQGWKH
WDNLQJRIDGHSRVLWLRQDQGQRWWRSUHSDUHIRUWKHWDNLQJWKHUHRIEHFDXVHLQUHDOLW\WKHUHLVQRQHHGIRUSUHSDUDWLRQ,WLVQRWD
WULDO ZKHUH WKH GHIHQGDQW KDV WR LQWURGXFH KLV HYLGHQFH ,W LV RQO\ WDNLQJ GRZQ WKH VWDWHPHQWV RI WKH ZLWQHVVHV IRU WKH
SURVHFXWLRQZLWKRSSRUWXQLW\RQWKHSDUWRIWKHGHIHQGDQWWRFURVVH[DPLQHWKHP
7KHWKUXVWRI(ODJRLVWKDWWKHRUGHURIWKHFRXUWDXWKRUL]LQJWKHWDNLQJRIWKHGHSRVLWLRQRIWKHZLWQHVVHVRIWKH
SURVHFXWLRQ DQG IL[LQJ WKH GDWH DQG WLPH WKHUHRI LV WKH RQH WKDW PXVW EH VHUYHG RQ WKH DFFXVHG ZLWKLQ D
UHDVRQDEOHWLPHSULRUWRWKDWIL[HGIRUWKHH[DPLQDWLRQRIWKHZLWQHVVHVVRWKDWWKHDFFXVHGPD\EHSUHVHQWDQG
FURVVH[DPLQH WKH ZLWQHVV 2Q WKLV SRLQW RI WKH WLPH JLYHQ WKH GHIHQGDQW WR DWWHQG WKH WDNLQJ RI WKH GHSRVLWLRQ
3URIHVVRU:LJPRUHKDVWKHIROORZLQJWRVD\ Wr x
vK T Z k
7KHRSSRUWXQLW\RIFURVVH[DPLQDWLRQLQYROYHVWZRHOHPHQWV
1RWLFHWRWKHRSSRQHQWWKDWWKHGHSRVLWLRQLVWREHWDNHQDWWKHWLPHDQGSODFHVSHFLILHGDQG
$VXIILFLHQWLQWHUYDORIWLPHWRSUHSDUHIRUH[DPLQDWLRQDQGWRUHDFKWKHSODFH
[[[[[[[[[
7KH UHTXLUHPHQWV DV WR WKH LQWHUYDO RI WLPH DUH QRZ HYHU\ZKHUH UHJXODWHG E\ VWDWXWH WKH
UXOLQJVLQUHJDUGWRWKHVXIILFLHQF\RIWLPHDUHWKXVVRGHSHQGHQWRQWKHLQWHUSUHWDWLRQRIWKHGHWDLOHG
SUHVFULSWLRQVRIWKHORFDOVWDWXWHVWKDWLWZRXOGEHLPSUDFWLFDEOHWRH[DPLQHWKHPKHUH%XWZKHWKHURU
QRW WKH WLPH DOORZHG ZDV VXSSRVHGO\ LQVXIILFLHQW RU ZDV SUHFLVHO\ WKH WLPH UHTXLUHG E\ VWDWXWH WKH
DFWXDODWWHQGDQFHRIWKHSDUW\REYLDWHDQ\REMHFWLRQXSRQWKHJURXQGRILQVXIILFLHQF\EHFDXVHWKHQ
WKH SDUW\ KDV DFWXDOO\ KDG WKDW RSSRUWXQLW\ RI FURVVH[DPLQDWLRQ IRU WKH VROH VDNH RI ZKLFK WKH
QRWLFHZDVUHTXLUHG
:HWKHUHIRUHKROGWKDWWKHWDNLQJRIWKHWHVWLPRQ\RUGHSRVLWLRQZDVSURSHUDQGYDOLG
9,
:$,9(52)3(7,7,21(5
635(6(1&(
7KHUH LV FRQIOLFW DPRQJ WKH DXWKRULWLHV DV WR ZKHWKHU DQ DFFXVHG FDQ ZDLYH KLV ULJKW WR EH SUHVHQW DW KLV WULDO
6RPH FRXUWV KDYH UHJDUGHG WKH SUHVHQFH RI WKH DFFXVHG DW KLV WULDO IRU IHORQ\ DV D MXULVGLFWLRQDO UHTXLUHPHQW
ZKLFKFDQQRWEHZDLYHG 0DQ\RWKHUVGRQRWDFFHSWWKLVYLHZ,QGHIHQVHRIWKHILUVWYLHZLWKDVEHHQVWDWHGWKDW
WKHSXEOLFKDVDQLQWHUHVWLQWKHOLIHDQGOLEHUW\RIDQDFFXVHGDQGWKDWZKLFKWKHODZFRQVLGHUVHVVHQWLDOLQDWULDOFDQQRWEH
ZDLYHGE\WKHDFFXVHG ,QVXSSRUWRIWKHODWWHUYLHZLWKDVEHHQDUJXHGWKDWWKHULJKWLVHVVHQWLDOO\IRUWKHEHQHILWRIWKH
DFFXVHGDQGWKDWVLQFHWKHDFFXVHGE\SOHDGLQJJXLOW\FDQZDLYHDQ\WULDODWDOOKHVKRXOGEHDEOHWRZDLYHDQ\PHUH
SULYLOHJHRQWKHWULDOWKDWLVGHVLJQDWHGRQO\WRDLGKLPLQVKLHOGLQJKLPVHOIIURPVXFKUHVXOW
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
,QWKLVMXULVGLFWLRQWKLV&RXUWLQ3HRSOHY$YDQFHxDWUDFHGWKHKLVWRU\RIWKHFRQVWLWXWLRQDOULJKWRIWKHDFFXVHGWR
EHSUHVHQWDWKLVWULDOIURP86Y.DUHOVHQDQG86Y%HOOR'LD]Y8QLWHG6WDWHVDQG3HRSOHY)UDQFLVFR ,Q
WKH ILUVW WZR FDVHV LW ZDV UXOHG WKDW RQH ZKRVH OLIH RU OLEHUW\ LV LQYROYHG LQ WKH SURVHFXWLRQ IRU IHORQ\ PXVW EH SHUVRQDOO\
SUHVHQWDWHYHU\VWDJHRIWKHWULDOZKHQKLVVXEVWDQWLYHULJKWVPD\EHDIIHFWHGE\WKHSURFHHGLQJVDQGWKDWLWLVQRWZLWKLQ
KLV SRZHU WR ZDLYH WKH ULJKW WR EH SHUVRQDOO\ SUHVHQW ,Q 'LD] Y 8QLWHG 6WDWHV DQG 3HRSOH Y )UDQFLVFR WKLV UXOH ZDV
PRGLILHG8SRQWKHDXWKRULW\RIWKH'LD]DQG)UDQFLVFRFDVHVWKH&RXUWODLGGRZQDVWKHODZLQWKLVMXULVGLFWLRQWKDWLQ
FDVHV RI IHORQ\ WKH DFFXVHG KDV WKH ULJKW WR EH SUHVHQW DW HYHU\ VWDJH RI WKH WULDO LQFOXVLYH RI WKH DUUDLJQPHQW DQG
SURQRXQFHPHQWRIWKHMXGJPHQWZKHUHWKHRIIHQVHLVFDSLWDOWKHULJKWRIWKHDFFXVHGWREHSUHVHQWDWHYHU\VWDJHRIWKH
WULDO LV LQGLVSHQVDEOH DQG FDQQRW EH ZDLYHG HYHQ LQ IHORQLHV QRW FDSLWDO LI WKH DFFXVHG LV LQ FXVWRG\ KLV ULJKW WR EH
SUHVHQWDWHYHU\VWDJHRIWKHWULDOLVOLNHZLVHLQGLVSHQVDEOHDQGFDQQRWEHZDLYHGZKHUHWKHRIIHQVHLVQRWFDSLWDODQG
WKHDFFXVHGLVQRWLQFXVWRG\KLVSUHVHQFHLVLQGLVSHQVDEOHRQO\DDWWKHDUUDLJQPHQWEDWWKHWLPHWKHSOHDLVWDNHQLI
LWEHRQHRIJXLOWDQGFDWWKHSURQRXQFHPHQWRIMXGJPHQW7KH&RXUWORRWHGWKHUDWLRQDOHRI'LD]Y8QLWHG6WDWHVDVEDVLV
RILWVUXOLQJWKXVWr x
vK T Z k
WKH FRXUW ZDV FDOOHG XSRQ WR SDVV RQ WKH TXHVWLRQ ZKHWKHU WKH SURYLVLRQ LQ VHFWLRQ RI WKH
3KLOLSSLQH&LYLO*RYHUQPHQW$FWVHFXULQJWRWKHDFFXVHGLQDOOFULPLQDOSURVHFXWLRQV
WKHULJKWWREH
KHDUG E\ KLPVHOI DQG FRXQVHO
PDNHV KLV SUHVHQFH LQGLVSHQVDEOH DW HYHU\ VWDJH RI WKH WULDO RU
LQYHVWV KLP ZLWK D ULJKW ZKLFK KH LV DOZD\V IUHH WR DVVHUW EXW ZKLFK KH DOVR PD\ ZDLYH E\ KLV
YROXQWDU\DFW$IWHUREVHUYLQJWKDWDQLGHQWLFDORUVLPLODUSURYLVLRQLVIRXQGLQWKHFRQVWLWXWLRQVRIWKH
VHYHUDO VWDWHV RI WKH $PHULFDQ 8QLRQ DQG WKDW LWV VXEVWDQWLDO HTXLYDOHQW LV HPERGLHG LQ WKH WK
$PHQGPHQW WR WKH &RQVWLWXWLRQ RI WKH 8QLWHG 6WDWHV WKDW LW LV WKH ULJKW ZKLFK WKHVH FRQVWLWXWLRQDO
SURYLVLRQV VHFXUH WR SHUVRQV DFFXVHG RI FULPH LQ WKDW FRXQWU\ WKDW ZDV FDUULHG KHUH E\ WKH
FRQJUHVVLRQDO HQDFWPHQW DQG WKDW WKHUHIRUH DFFRUGLQJ WR D IDPLOLDU UXOH WKH SUHYDLOLQJ FRXUVH RI
GHFLVLRQWKHUHPD\DQGVKRXOGEHDFFHSWHGDVGHWHUPLQDWLYHRIWKHQDWXUHDQGPHDVXUHRIWKHULJKW
KHUH-XVWLFH9DQ'HYDQWHUVSHDNLQJIRUWKHFRXUWVDLG
$VWKHRIIHQVHLQWKLVLQVWDQFHZDVDIHORQ\
ZH PD\ SXW RXW RI YLHZ WKH GHFLVLRQV GHDOLQJ ZLWK WKLV ULJKW LQ FDVHV RI PLVGHPHDQRU ,Q FDVHV RI
IHORQ\RXUFRXUWVZLWKVXEVWDQWLDODFFRUGKDYHUHJDUGHGLWDVH[WHQGLQJWRHYHU\VWDJHRIWKHWULDO
LQFOXVLYH RI WKH HPSDQHOLQJ RI WKH MXU\ DQG WKH UHFHSWLRQ RI WKH YHUGLFW DQG DV EHLQJ VFDUFHO\ OHVV
LPSRUWDQW WR WKH DFFXVHG WKDQ WKH ULJKW RI WULDO LWVHOI $QG ZLWK OLNH DFFRUG WKH\ KDYH UHJDUGHG DQ
DFFXVHGZKRLVLQFXVWRG\DQGRQHZKRLVFKDUJHGZLWKDFDSLWDORIIHQVHDVLQFDSDEOHRIZDLYLQJWKH
ULJKWWKHRQHEHFDXVHKLVSUHVHQFHRUDEVHQFHLVQRWZLWKLQKLVRZQFRQWURODQGWKHRWKHUEHFDXVH
LQDGGLWLRQWREHLQJXVXDOO\LQFXVWRG\KHLVGHHPHGWRVXIIHUWKHFRQVWUDLQWQDWXUDOO\LQFLGHQWWRDQ
DSSUHKHQVLRQRIWKHODZIXOSHQDOW\WKDWZRXOGIROORZFRQYLFWLRQ%XWZKHUHWKHRIIHQVHLVQRWFDSLWDO
DQGWKHDFFXVHGLVQRWLQFXVWRG\WKHSUHYDLOLQJUXOHKDVEHHQWKDWLIDIWHUWKHWULDOKDVEHJXQLQKLV
SUHVHQFH KH YROXQWDULO\ DEVHQWV KLPVHOI WKLV GRHV QRW QXOOLI\ ZKDW KDV EHHQ GRQH RU SUHYHQW WKH
FRPSOHWLRQ RI WKH WULDO EXW RQ WKH FRQWUDU\ RSHUDWHV DV D ZDLYHU RI KLV ULJKW WR EH SUHVHQW DQG
OHDYHVWKHFRXUWIUHHWRSURFHHGZLWKWKHWULDOLQOLNHPDQQHUDQGZLWKOLNHHIIHFWDVLIKHZHUHSUHVHQW
,Q $YDQFHxD WKH LVVXH ZDV ZKHWKHU WKH GHIHQGDQW FKDUJHG ZLWK DQ RIIHQVH ZKLFK LV QRW FDSLWDO KDG LPSOLHGO\
ZDLYHGKLVULJKWWREHSUHVHQWDWKLVWULDOEHFDXVHRIKLVIDLOXUHWRDSSHDULQFRXUWDWWKHWULDORIKLVFDVH
8QGHUWKHSUHVHQW&RQVWLWXWLRQKRZHYHUWULDOHYHQRIDFDSLWDORIIHQVHPD\SURFHHGQRWZLWKVWDQGLQJWKHDEVHQFH
RIWKHDFFXVHG,WLVQRZSURYLGHGWKDWDIWHUDUUDLJQPHQWWULDOPD\SURFHHGQRWZLWKVWDQGLQJWKHDEVHQFHRIWKH
DFFXVHGSURYLGHGWKDWKHKDVEHHQGXO\QRWLILHGDQGKLVIDLOXUHWRDSSHDULVXQMXVWLILHG
2QWKHEDVLVRIWKHDIRUHFLWHGSURYLVLRQRIWKH&RQVWLWXWLRQZKLFKDOORZVWULDORIDQDFFXVHGLQDEVHQWLDWKHLVVXH
KDV EHHQ UDLVHG ZKHWKHU RU QRW SHWLWLRQHU FRXOG ZDLYH KLV ULJKW WR EH SUHVHQW DW WKH SHUSHWXDWLRQ RI WHVWLPRQ\
SURFHHGLQJVEHIRUHUHVSRQGHQW&RPPLVVLRQ
$VDJHQHUDOUXOHVXEMHFWWRFHUWDLQH[FHSWLRQVDQ\FRQVWLWXWLRQDORUVWDWXWRU\ULJKWPD\EHZDLYHGLIVXFKZDLYHU
LV QRW DJDLQVW SXEOLF SROLF\ 7KH SHUVRQDO SUHVHQFH RI WKH DFFXVHG IURP WKH EHJLQQLQJ WR WKH HQG RI D WULDO IRU
IHORQ\LQYROYLQJKLVOLIHDQGOLEHUW\KDVEHHQFRQVLGHUHGQHFHVVDU\DQGYLWDOWRWKHSURSHUFRQGXFWRIKLVGHIHQVH
7KHWUHQGRIPRGHUQDXWKRULW\LVLQIDYRURIWKHGRFWULQHWKDWDSDUW\LQDFULPLQDOFDVHPD\ZDLYHLUUHJXODULWLHV
DQGULJKWVZKHWKHUFRQVWLWXWLRQDORUVWDWXWRU\YHU\PXFKWKHVDPHDVLQDFLYLOFDVH
7KHUH DUH IRU LQVWDQFH FHUWDLQ ULJKWV VHFXUHG WR WKH LQGLYLGXDO E\ WKH IXQGDPHQWDO FKDUWHU ZKLFK PD\ EH WKH
VXEMHFW RI ZDLYHU 7KH ULJKWV RI DQ DFFXVHG WR GHIHQG KLPVHOI LQ SHUVRQ DQG E\ DWWRUQH\ WR EH LQIRUPHG RI WKH
QDWXUHDQGFDXVHRIWKHDFFXVDWLRQWRDVSHHG\DQGSXEOLFWULDODQGWRPHHWWKHZLWQHVVHVIDFHWRIDFHDVZHOO
DV WKH ULJKW DJDLQVW XQUHDVRQDEOH VHDUFKHV DQG VHL]XUHV DUH ULJKWV JXDUDQWHHG E\ WKH &RQVWLWXWLRQ 7KH\ DUH
ULJKWVQHFHVVDU\HLWKHUEHFDXVHRIWKHUHTXLUHPHQWVRIGXHSURFHVVWRHQVXUHDIDLUDQGLPSDUWLDOWULDORURIWKH
QHHG RI SURWHFWLQJ WKH LQGLYLGXDO IURP WKH H[HUFLVH RI DUELWUDU\ SRZHU $QG \HW WKHUH LV QR TXHVWLRQ WKDW DOO RI
WKHVH ULJKWV PD\ EH ZDLYHG &RQVLGHULQJ WKH DIRUHFLWHG SURYLVLRQV RI WKH &RQVWLWXWLRQ DQG WKH DEVHQFH RI DQ\ ODZ
VSHFLILFDOO\ UHTXLULQJ KLV SUHVHQFH DW DOO VWDJHV RI KLV WULDO WKHUH DSSHDUV WKHUHIRUH QR ORJLFDO UHDVRQ ZK\ SHWLWLRQHU
DOWKRXJKKHLVFKDUJHGZLWKDFDSLWDORIIHQVHVKRXOGEHSUHFOXGHGIURPZDLYLQJKLVULJKWWREHSUHVHQWLQWKHSURFHHGLQJVIRU
WKH SHUSHWXDWLRQ RI WHVWLPRQ\ VLQFH WKLV ULJKW OLNH WKH RWKHUV DIRUHVWDWHG ZDV FRQIHUUHG XSRQ KLP IRU KLV SURWHFWLRQ DQG
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
EHQHILW
,WLVDOVRLPSRUWDQWWRQRWHWKDWXQGHU6HFWLRQRI5XOHRIWKH5HYLVHG5XOHVRI&RXUW'HSRVLWLRQRIZLWQHVV
IRUWKHSURVHFXWLRQWKH)DLOXUHRUUHIXVDORQWKHSDUWRIWKHGHIHQGDQWWRDWWHQGWKHH[DPLQDWLRQRUWKHWDNLQJRI
WKH GHSRVLWLRQ DIWHU QRWLFH KHUHLQEHIRUH SURYLGHG VKDOO EH FRQVLGHUHG D ZDLYHU (PSKDVLV VXSSOLHG 6LPLODUO\
3UHVLGHQWLDO 'HFUHH 1R H[SUHVVO\ SURYLGHV WKDW WKH IDLOXUH RU UHIXVDO WR DWWHQG WKH H[DPLQDWLRQ RU WKH
WDNLQJRIWKHGHSRVLWLRQVKDOOEHFRQVLGHUHGDZDLYHU(PSKDVLVVXSSOLHG
,W LV IRU WKH IRUHJRLQJ UHDVRQV WKDW WKH ZULWHU RI WKLV RSLQLRQ YRWHG ZLWK WKH VL[ -XVWLFHV ZKR UXOHG RQ WKH IXOO
ULJKWRISHWLWLRQHUWRZDLYHKLVSUHVHQFHDWVDLGSURFHHGLQJV
)LQDOO\LWLVLQVLVWHGWKDWHYHQLIVDLGRUGHUVDQGGHFUHHVZHUHYDOLGDVPDUWLDOODZPHDVXUHVWKH\KDYHFHDVHGWR
EHVRXSRQWKHWHUPLQDWLRQRIWKHHPHUJHQF\,Q$TXLQRHWDOY(QULOHHWDOVXSUD:HDGYHUWHGWRWKHIDFWWKDW
WKH FRPPXQLVW UHEHOOLRQ ZKLFK LPSHOOHG WKH SURFODPDWLRQ RI PDUWLDO ODZ KDV QRW DEDWHG ,Q WKH DEVHQFH RI DQ\
RIILFLDOSURFODPDWLRQE\WKH3UHVLGHQWRIWKHFHVVDWLRQRIWKHSXEOLFHPHUJHQF\:HKDYHQREDVLVWRFRQFOXGHWKDW
WKHUHEHOOLRQDQGFRPPXQLVWVXEYHUVLRQZKLFKFRPSHOOHGWKHGHFODUDWLRQRIPDUWLDOODZQRORQJHUSRVHDGDQJHU
WRSXEOLFVDIHW\
,WLVLPSRUWDQWWRQRWHKHUHWKDWDQDFFXVHGEHLQJWULHGEHIRUHDPLOLWDU\WULEXQDOHQMR\VWKHVSHFLILFFRQVWLWXWLRQDO
VDIHJXDUGVSHUWDLQLQJWRFULPLQDOWULDOV7KXVKHLVHQWLWOHGWREHKHDUGE\KLPVHOIDQGFRXQVHOWREHLQIRUPHGRI
WKHQDWXUHDQGFDXVHRIWKHDFFXVDWLRQ WRPHHWWKHZLWQHVVHVIDFHWRIDFHWRKDYHFRPSXOVRU\SURFHVVWRVHFXUHWKH
DWWHQGDQFH RI ZLWQHVVHV DQG WKH SURGXFWLRQ RI HYLGHQFH LQ KLV EHKDOI DQG WR EH H[HPSW IURP EHLQJ D ZLWQHVV DJDLQVW
KLPVHOI$VLQWULDOEHIRUHFLYLOFRXUWVWKHSUHVXPSWLRQRILQQRFHQFHFDQRQO\EHRYHUFRPHE\HYLGHQFHEH\RQGUHDVRQDEOH
GRXEW RI WKH JXLOW RI WKH DFFXVHG 7KHVH WULEXQDOV LQ JHQHUDO DUH ERXQG WR REVHUYH WKH IXQGDPHQWDO UXOHV RI ODZ DQG
SULQFLSOHV RI MXVWLFH REVHUYHG DQG H[SRXQGHG E\ WKH FLYLO MXGLFDWXUH 6HFWLRQ RI WKH 0DQXDO IRU &RXUWV0DUWLDO
VSHFLILFDOO\ SURYLGHV WKDW WKH UXOHV RI HYLGHQFH JHQHUDOO\ UHFRJQL]HG LQ WKH WULDO RI FULPLQDO FDVHV LQ WKH FRXUWV RI WKH
3KLOLSSLQHV VKDOO EH DSSOLHG E\ FRXUWVPDUWLDO 7KLV LV DSSOLFDEOH WR WULDOV LQ WKH PLOLWDU\ FRPPLVVLRQ 7KHUH LV
WKHUHIRUHQRMXVWLILFDWLRQIRUSHWLWLRQHU
VFRQWHQWLRQWKDWVXFKPLOLWDU\WULEXQDOVDUHFRQFHUQHGSULPDULO\ZLWKWKHFRQYLFWLRQRI
DQ DFFXVHG DQG WKDW SURFHHGLQJV WKHUHLQ LQYROYH WKH FRPSOHWH GHVWUXFWLRQ DQG DEROLWLRQ RI SHWLWLRQHU
V FRQVWLWXWLRQDO ULJKWV
7KLV LV QRW KRZHYHU WR SUHFOXGH WKH 3UHVLGHQW IURP FRQVLGHULQJ WKH DGYLVDELOLW\ RI WKH WUDQVIHU RI WKHVH FDVHV WR WKH FLYLO
FRXUWVDVKHKDVSUHYLRXVO\DQQRXQFHG
,1 9,(: 2) $// 7+( )25(*2,1* MXGJPHQW LV KHUHE\ UHQGHUHG GLVPLVVLQJ WKH SHWLWLRQV IRU SURKLELWLRQ ZLWK
SUHOLPLQDU\LQMXQFWLRQDQGVHWWLQJDVLGHWKHWHPSRUDU\UHVWUDLQLQJRUGHULVVXHGRQ$SULOZLWKFRVWVDJDLQVW
SHWLWLRQHU
$TXLQR&RQFHSFLRQ-UDQG0DUWLQ--FRQFXU l Z S K w x s W
0DNDOLQWDO&-WRRNQRSDUW
6HSDUDWH2SLQLRQV
&$6752-FRQFXUULQJDQGGLVVHQWLQJ
, DP FRQVWUDLQHG WR ZULWH WKLV FRQFXUULQJ DQG GLVVHQWLQJ RSLQLRQ EHFDXVH D DOWKRXJK , VXEVWDQWLDOO\ DJUHH ZLWK
-XVWLFH )HOL[ 4 $QWRQLR
V IRUWKULJKW GLVFXVVLRQ DQG OHDUQHG UHVROXWLRQ RI WKH LQHVFDSDEOH LVVXHV SRVHG E\ WKH
SHWLWLRQ DQG WKH VXSSOHPHQWDO SHWLWLRQV ILOHG E\ WKH SHWLWLRQHU %HQLJQR 6 $TXLQR -U , GLVDJUHH ZLWK KLV
DSSUREDWLRQ RI WKH ULJKW RI WRWDO ZDLYHU FODLPHG E\ WKH SHWLWLRQHU DQG E , GHVLUH WR H[SUHVV P\ YLHZV RQ
PDWWHUVZKLFKDOWKRXJKLQDVHQVHSHULSKHUDODQGQRWVTXDUHO\LQLVVXHDUHQHYHUWKHOHVVFRJHQWDQGSHUWLQHQWWR
WKHFHQWUDOLVVXHVDWEDU
$WWKHWKUHVKROG,PXVWVWDWHWKDW,YRWHGWRGHQ\WKHSHWLWLRQHU$TXLQR
VPRWLRQWRZLWKGUDZKLVSHWLWLRQVDQGDOO
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
UHODWHGPRWLRQVDQGLQFLGHQWVIRUWKHVHOIVDPHUHDVRQVWKDWLPSHOOHGP\YRWHWRGHQ\-RVH:'LRNQR
VPRWLRQ
WRZLWKGUDZKLVSHWLWLRQLQWKH0DUWLDO/DZFDVHV$TXLQRHWDOYV(QULOHHWDO/DQGRWKHUDOOLHGFDVHV
/LNHLQWKHFDVHVMXVWDGYHUWHGWRWKHUHDUHLQWKHFDVHDWEDUFRQVLGHUDWLRQVDQGLVVXHVRIWUDQVFHQGHQWDODQG
JUDYH LPSRUW DQG , DSSUHKHQG WKDW JUHDW GLVVHUYLFH PD\ EH FDXVHG WR WKH QDWLRQDO LQWHUHVW LI WKHVH DUH QRW
UHVROYHGRQWKHPHULWV
,DPKDUGSXWWRXQGHUVWDQGKRZDQGZK\WKHSHWLWLRQHU
VFRXQVHOVFRQMXUHGWKHDUJXPHQWWKDWXQGHUWKH%LOORI
5LJKWVWKHGXHSURFHVVDFFRUGHGWRSHUVRQVDFFXVHGLQFULPLQDOFDVHVFRQWHPSODWHVRQO\MXGLFLDOSURFHVV7KLV
DUJXPHQWUXQVVTXDUHO\DWKZDUWWKHWLPHKRQRUHGGRFWULQHLQWKH3KLOLSSLQHVDVZHOODVLQWKH8QLWHG6WDWHV²D
GRFWULQHWKDWWKHSHWLWLRQHU
VFRXQVHOVPXVWVXUHO\EHDZDUHRIWKDWGXHSURFHVVLQFULPLQDOWULDOVPD\FRPSUHKHQG
QRWRQO\MXGLFLDOSURFHVVEXWDOVRH[HFXWLYHSURFHVVDQGHYHQOHJLVODWLYHSURFHVVLQWKHSURSHUFDVHV
&RUROODULO\ WR WKLV FRQWHQWLRQ RI WKH SHWLWLRQHU WKH IXUWKHU WKHVLV LV DGYDQFHG WKDW KLV WULDO E\ D PLOLWDU\
FRPPLVVLRQ GHQLHV KLP GXH SURFHVV EHFDXVH KH LV GHSULYHG RI WKH ULJKW RI DSSHDO ,W VHHPV UDWKHU HOHPHQWDU\
WKDWWKHULJKWRIDSSHDOXQOHVVWKH&RQVWLWXWLRQH[SUHVVO\JXDUDQWHHVVXFKULJKWLVPHUHO\VWDWXWRU\DQGPD\EH
ZLWKGUDZQPRGLILHGRUDOWHUHGDWDQ\WLPH²DSULQFLSOHWKDWKLVFRXQVHOVNQRZRQO\WRRZHOO(YHQDQDSSHDOWR
DQLQWHUPHGLDWHFROOHJLDWHDSSHOODWHFRXUWRUWRWKH6XSUHPH&RXUWLVQRWDULJKWXQGHUWKH&RQVWLWXWLRQXQOHVVDQ
H[SOLFLWJXDUDQWHHFDQEHIRXQGLQWKHZRUGVWKHUHRI
$QGDVIDUDVDSSHDOLVFRQFHUQHGLWLVDSSDUHQWWKDWWKHSHWLWLRQHU
VFRXQVHOVDUHQRWDZDUHRIWKHQXPEHURIWKH
OHYHOV RI UHYLHZ RI D GHFLVLRQ RI FRQYLFWLRQ E\ D PLOLWDU\ FRPPLVVLRQ LQ RXU MXULVGLFWLRQ )RXU OHYHOV RI UHYLHZ
HTXLYDOHQWWRIRXUOHYHOVRIDXWRPDWLFDSSHDODUHSURYLGHGQDPHO\WKHILUVWUHYLHZE\WKH6WDII-XGJH$GYRFDWH
RIWKH&KLHIRI6WDIIZKRDSSRLQWVWKHPLOLWDU\FRPPLVVLRQWKHVHFRQGUHYLHZE\D%RDUGRI5HYLHZRIQRWOHVV
WKDQWKUHHVHQLRURIILFHUVRIWKH-XGJH$GYRFDWH*HQHUDO
V6HUYLFHWKHWKLUGUHYLHZE\D%RDUGRI5HYLHZRIQRW
OHVV WKDQ WKUHH VHQLRU RIILFHUV RI WKH -XGJH $GYRFDWH *HQHUDO
V 6HUYLFH WKH WKLUG UHYLHZ E\ D %RDUG RI 0LOLWDU\
5HYLHZDFWLQJIRUWKH6HFUHWDU\RI1DWLRQDO'HIHQVHDQGFRQVLVWLQJRIQRWOHVVWKDQWZRODZ\HURIILFHUVRIDWOHDVW
ILHOG UDQN DQG WKH IRXUWK DQG ILQDO UHYLHZ E\ WKH 6HFUHWDU\ RI -XVWLFH IRU WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV DV
&RPPDQGHULQ&KLHI7KHVHIRXUUHYLHZVDUHFRPSXOVRU\QRQHRIWKHPPD\EHE\SDVVHGRUGLVSHQVHGZLWK$QG
HYHQ LI WKH 6WDII -XGJH $GYRFDWH WKH %RDUG RI 5HYLHZ DQG WKH %RDUG RI 0LOLWDU\ 5HYLHZ DOO FRQFXU LQ WKH
MXGJPHQWRIFRQYLFWLRQDQGWKHVHQWHQFHLPSRVHGE\WKHPLOLWDU\FRPPLVVLRQWKH6HFUHWDU\RI-XVWLFHPD\\HWLI
LQKLVRSLQLRQWKHHYLGHQFHVRZDUUDQWVUHFRPPHQGWRWKH3UHVLGHQWWKHDFTXLWWDORUH[RQHUDWLRQRIWKHDFFXVHG
6R WKDW IURP DUUDLJQPHQW E\ D PLOLWDU\ FRPPLVVLRQ WR ILQDO DFWLRQ E\ WKH 3UHVLGHQW D PLQLPXP RI WKLUWHHQ
SUHVXPSWLYHO\ UHVSRQVLEOH LQGLYLGXDOV LQ GLIIHUHQW FDSDFLWLHV DUH LQYROYHG LQ WKH HQWLUH SURFHVV D PLOLWDU\
FRPPLVVLRQ RI QRW OHVV WKDQ ILYH PHPEHUV D 6WDII -XGJH $GYRFDWH D %RDUG RI 5HYLHZ RI QRW OHVV WKDQ WKUHH
RIILFHUV D %RDUG RI 0LOLWDU\ 5HYLHZ RI QRW OHVV WKDQ WZR RIILFHUV WKH 6HFUHWDU\ RI -XVWLFH DQG WKH 3UHVLGHQW ,
FDQQRW DFFHSW WKH SHWLWLRQHU
V LQIHUHQWLDO FRQFOXVLRQ WKDW DOO WKH WZHOYH SHUVRQV LQYROYHG EHIRUH WKH 3UHVLGHQW
WDNHVILQDODFWLRQFDQEHGLFWDWHGWRDVVXPLQJWKDWWKH3UHVLGHQWLVPLQGHGWRLQIOXHQFHWKHP7KHSHWLWLRQHUPD\
QRW EH DZDUH ZKDW WKH PLOLWDU\ FRPPLVVLRQ QRZ H[LVWLQJ KDYH DFTXLWWHG PDQ\ ZKR KDYH EHHQ DFFXVHG EHIRUH
WKHP DQG WKDW FRQYLFWLRQV KDYH EHHQ UHYHUVHG RU PRGLILHG XSRQ WKH UHFRPPHQGDWLRQ RI WKH UHYLHZLQJ RIILFHUV
DQGERDUGVRIRIILFHUV
7KHSHWLWLRQHUPDNHVWKHLQGLFWPHQWWKDWWKHPLOLWDU\WULEXQDOVDQGWKHHQWLUH-XGLFLDU\DUHWRSDUDSKUDVHKLP
ZHOOXQGHUWKHWKXPERIWKH3UHVLGHQWRIWKH3KLOLSSLQHV,TXRWHKLVH[DFWZRUGV0U0DUFRVLVWKHVLQJOHJHQLXV
FRPSRVLQJ DQG GLUHFWLQJ DOO WKH SURFHHGLQJV ZKHWKHU LQ WKH PLOLWDU\ WULEXQDO RU LQ WKH FLYLO FRXUWV >DQG@ KDV
GHVWUR\HGWKHLQGHSHQGHQFHRIWKHFLYLOFRXUWV7ULDOVE\FLYLOFRXUWVZRXOGVWLOOEHDWUDYHVW\RIMXVWLFH7KLV
DFFXVDWLRQLVGRXEWOHVVYHU\VHULRXVEXW,VD\WKDWLWLVDJUDYHO\LUUHVSRQVLEOHRQH7RGHFODUHRULPSO\WKDWWKH
HQWLUH-XGLFLDU\IURPWKH&KLHI-XVWLFHDQG$VVRFLDWH-XVWLFHVRIWKH6XSUHPH&RXUWGRZQWRWKHODVWPXQLFLSDO
MXGJHLVXQGHUGLFWDWLRQE\WKH3UHVLGHQWLVDQLQGLFWPHQWWKDWFDQFRPHRQO\IURPDSHUVRQZKRGRHVQRWNQRZ
ZKHUHRIKHVSHDNV,IWKHSHWLWLRQHUKDVQRIDLWKLQPLOLWDU\MXVWLFHDQGDWWKHVDPHWLPHSURIHVVHVDEVROXWHODFNRI
IDLWK LQ WKH -XGLFLDU\ GRHV WKLV PHDQ WKDW WKH SHWLWLRQHU LV VR PDJLFDOO\ HQGRZHG WKDW RQO\ KH DQG KH DORQH LV
FDSDEOH RI PHWLQJ RXW MXVWLFH LQ WKLV FRXQWU\" 7KH RYHUDOO ZRUNORDG RI DOO WKH FRXUWV LQ WKH 3KLOLSSLQHV KDV
LQFUHDVHGLPPHDVXUDEO\,IWKLVGRHVQRWLQGXELWDEO\LQGLFDWHWKHIDLWKRIWKHSHRSOHLQWKH-XGLFLDU\WKHQ,GRQRW
NQRZZKDWGRHV,IWKHSHWLWLRQHUGRHVQRWVKDUHWKHIDLWKRIWKHSHRSOHLQWKH-XGLFLDU\ZHPXVWORRNWRUHDVRQV
RWKHUWKDQWKHRVWHQVLEOHRQHVIRUKLVLUUHVSRQVLEOHDQGUHSUHKHQVLEOHVWDWHPHQWV7RP\PLQGWKHVHUHDVRQVDUH
REYLRXVDQGQHHGQRWEHEHODERUHG
2Q WKH PDWWHU RI ZKHWKHU WKH SHWLWLRQHU KDV ZKDW KH FODLPV LV D ULJKW RI WRWDO ZDLYHU RI KLV SUHVHQFH LQ WKH
SURFHHGLQJVEHIRUHWKHPLOLWDU\FRPPLVVLRQ,FRQIHVVWKDWWKHEDVLVIRUVXFKYLHZHVFDSHVPH7KHWURXEOHZLWK
WKHDGYRFDF\RIWKHVRFDOOHGULJKWRIWRWDOZDLYHULVWKDWLWSODFHVXQGXHDQGLQRUGLQDWHVWUHVVRQWKHULJKWVRI
WKH LQGLYLGXDO DQG FRPSOHWHO\ UHIXVHV WR UHFRJQL]H WKDW WKH 6WDWH WRR KDV LWV RZQ ULJKWV DQG GXWLHV , GR QRW
EHOLHYHWKDWWKHUHFDQEHDQ\GHEDWHRQWKHULJKWDQGREOLJDWLRQRIWKH6WDWHWRDGPLQLVWHUMXVWLFHSURSHUO\3DUW
DQGSDUFHORIWKLVULJKWDQGREOLJDWLRQLVWKHULJKWRIDWULEXQDOZKHWKHUMXGLFLDORUH[HFXWLYHWRVDWLVI\LWVHOIWKDWWKH
SHUVRQ ZKRP LW PD\ ODWHU FRQYLFW XSRQ WKH HYLGHQFH LV WKH DFFXVHG SRLQWHG WR E\ WKH H\HZLWQHVVHV IRU WKH
SURVHFXWLRQ%HFDXVHLIWKHZLWQHVVHVSRLQWWR;DQGWKHDFFXVHGDFWXDOO\KDSSHQVWREH<WKHFRXUWRIWULEXQDO
KDV LQ FRQVFLHQFH QR UHFRXUVH EXW WR DEVROYH < )RU WKH SURSHU LGHQWLILFDWLRQ RI WKH DFFXVHG LV WKH YHU\
TXLQWHVVHQFHDQGVLQHTXDQRQRIDQ\YDOLGSURVHFXWLRQLVWKHYHU\IXQGDPHQWDORIGXHSURFHVV LQ DQ\ FULPLQDO
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
WULDO 6XUHO\ LI WKH FRPPLVVLRQ LV WR GLVFKDUJH LWV EXUGHQ FRQVFLHQWLRXVO\ LW FDQQRW EH GHQLHG WKH ULJKW WR
GHWHUPLQHIRULWVHOIWKHSURSHULGHQWLW\RIWKHSHUVRQZKRVWDQGVDFFXVHGEHIRUHLW7KLVULJKWKDVDEVROXWHSULPDF\
RYHUZKDWWKHSHWLWLRQHUFDOOVKLVULJKWRIWRWDOZDLYHURIKLVSUHVHQFH
2IFRXUVHLQWKLVSDUWLFXODUFDVHRIWKHSHWLWLRQHULWFRXOGEHDUJXHGWKDWKHLVDQDWLRQDOILJXUHDQGWKHUHIRUHLV
NQRZQ E\ HYHU\ERG\ %XW , FKDOOHQJH WKH FRUUHFWQHVV RI WKLV SRVWXODWH )RU FDQ LW QRW SRVVLEO\ KDSSHQ WKDW D
PHPEHU RI WKH WU\LQJ WULEXQDO PD\ KDYH KHDUG RI %HQLJQR 6 $TXLQR -U WKH IRUPHU *RYHUQRU RI 7DUODF DQG
IRUPHU 6HQDWRU EXW PD\ KDYH QHYHU DFWXDOO\ VHHQ KLP EHIRUH" ,GHQWLILFDWLRQ LV HVVHQWLDOO\ RQH RI SHUFHSWLRQ RI
VLJKW DQG QRW D SURFHVV RI LQIHUHQFH RU VWUDLQHG GHGXFWLYH UHDVRQLQJ ,W PD\ EH FRUUHFW WR LQIHU IURP WKH
GHFODUDWLRQVLQFRXUWRIZLWQHVVHVIRUWKHSURVHFXWLRQZKRUHIHUWRD%HQLJQR6$TXLQR-UIRUPHU*RYHUQRURI
7DUODF DQG IRUPHU 6HQDWRU WKDW WKH SHUVRQ UHIHUUHG WR LV WKH SHWLWLRQHU EXW WKLV FDQQRW WKHUHE\ IRUHFORVH WKH
SHWLWLRQHUIURPODWHUFKDOOHQJLQJWKHYDOLGLW\RIKLVFRQYLFWLRQLIKHLVFRQYLFWHGXSRQWKHJURXQGWKDWQRWRQHRI
WKHSURVHFXWLRQZLWQHVVHVSRLQWHGWRKLPDVWKHLQGLFWHG%HQLJQR6$TXLQR-U
0\XQGHUVWDQGLQJRIWKHSURYLVLRQVRIWKHQHZ&RQVWLWXWLRQRQZDLYHURISUHVHQFHLQFULPLQDOSURFHHGLQJVLVWKDW
VXFKZDLYHUPD\EHYDOLGO\LPSOLHGSULQFLSDOO\LQFDVHVZKHUHWKHDFFXVHGKDVMXPSHGEDQRUKDVHVFDSHGEXW
FHUWDLQO\ PD\ QRW KH DVVHUWHG DV D PDWWHU RI DEVROXWH ULJKW LQ FDVHV ZKHUH WKH DFFXVHG LV LQ FXVWRG\ DQG KLV
LGHQWLILFDWLRQLVQHHGHGLQWKHFRXUVHRIWKHSURFHHGLQJV
$QGZKDWRIWKHUHYLHZVWREHFRQGXFWHGE\WKH6WDII-XGJH$GYRFDWHRIWKH&KLHIRI6WDIIWKH%RDUGRI5HYLHZ
WKH%RDUGRI0LOLWDU\5HYLHZDQGWKH6HFUHWDU\RI-XVWLFH",VLWQRWWKHERXQGHQGXW\RIWKHVHLQGLYLGXDOVVLQJO\
DQG FROOHFWLYHO\ WR VDWLVI\ WKHPVHOYHV EH\RQG FDYLO DW WKH RXWVHW RI UHYLHZ WKDW WKH SHUVRQ FRQYLFWHG E\ WKH
FRPPLVVLRQLVWKHDFFXVHGQDPHGLQWKHFKDUJHVDQGWKDWKHZDVLGHQWLILHGSURSHUO\E\WKHH\HZLWQHVVHVIRUWKH
SURVHFXWLRQ"
7KXV,YRWHGIRUTXDOLILHGZDLYHUWKHDFFXVHGPD\YDOYHKLVSUHVHQFHLQWKHFULPLQDOSURFHHGLQJVH[FHSWDWWKH
VWDJHV ZKHUH LGHQWLILFDWLRQ RI KLV SHUVRQ E\ WKH SURVHFXWLRQ ZLWQHVVHV LV QHFHVVDU\ , PLJKW DJUHH WR WKH
SURSRVLWLRQRIWRWDOZDLYHULQDQ\FDVHZKHUHWKHDFFXVHGDJUHHVH[SOLFLWO\DQGXQHTXLYRFDOO\LQZULWLQJVLJQHGE\
KLP RU SHUVRQDOO\ PDQLIHVWV FOHDUO\ DQG LQGXELWDEO\ LQ RSHQ FRXUW DQG VXFK PDQLIHVWDWLRQ LV UHFRUGHG WKDW
ZKHQHYHUDSURVHFXWLRQZLWQHVVPHQWLRQVDQDPHE\ZKLFKWKHDFFXVHGLVNQRZQWKHZLWQHVVLVUHIHUULQJWRKLP
DQGWRQRRQHHOVH
:KDW LV GLVWXUELQJ LV WKDW EHFDXVH VL[ -XVWLFHV YRWHG IRU WRWDO ZDLYHU DQG RQO\ ILYH -XVWLFHV YRWHG IRU TXDOLILHG
ZDLYHUWKHMXGJHVRIDOOLQIHULRUFRXUWVZRXOGQRZEHDWDORVVWRGHWHUPLQHLQDQ\JLYHQVLWXDWLRQZKHWKHUWRWDNH
WKHWRWDOZDLYHUSRVLWLRQRUIROORZWKHTXDOLILHGZDLYHUGRFWULQH²XQOHVVLWEHFRQFHGHGWKDWEHFDXVHWKH&RXUWLV
GLYLGHG DQG WKH WRWDO ZDLYHU WKHRU\ IDLOV WR FRPPDQG WKH DVVHQW RI HLJKW -XVWLFHV WKH TXDOLILHG ZDLYHU WKHRU\
PXVW EH UHJDUGHG DV GRFWULQDO ODZ 2WKHUZLVH HDFK MXGJH VKRXOG EH OHIW WR GHWHUPLQH DFFRUGLQJ WR KLV
FRQVFLHQFHDQGWKHPLOLHXRIHDFKFDVHZKDWWRGRLQRUGHUWRDGPLQLVWHUMXVWLFHSURSHUO\
$FTXLWWDORQDPLVWDNHQLGHQWLW\EDVLVKDVRFFXUUHGLQQXPEHUOHVVLQVWDQFHVDOORYHUWKHZRUOG:KLOHLWLVWUXHWKDW
WKH 5XOHV RI &RXUW SURYLGH WKDW LGHQWLW\ RI QDPH PHDQV LGHQWLW\ RI SHUVRQ LW LV D ZHOONQRZQ IDFW LQ WKLV FRXQWU\
WKDW WKHUH DUH QDPHV VR FRPPRQ WKDW PDQ\ SHUVRQV FDUU\ WKH VDPH QDPH (VSHFLDOO\ FRQVLGHULQJ WKDW RXU
SRSXODWLRQKDVEXUJHRQHGFRQVLGHUDEO\QRRQHFDQGHQ\WKDWWKHUHDUHPDQ\SHUVRQVE\WKHQDPH-RVH&UX]
PDQ\E\WKHQDPH-RVH6DQWRVPDQ\E\WKHQDPH-RVH5H\HVDGLQILQLWXP
ZKLFKLVJRRGHQRXJKUHDVRQZK\
WKH3UHVLGHQWRIWKH,QWHJUDWHG%DUUHWLUHG6XSUHPH&RXUW-XVWLFH-RVH%/5H\HVKDVIRXQGLWQHFHVVDU\WRSXW
WKHOHWWHUV%DQG/EHWZHHQWKHQDPHV-RVHDQG5H\HVDQGZK\,KDYHXVHGWKHQDPH5XL]LQP\QDPH
LQRUGHUWKDWP\LGHQWLW\ZLOOQRWEHFRQIXVHGZLWKWKRVHRIWZRRWKHUSHUVRQVZKRDUHNQRZQE\WKHQDPH)UHG
&DVWUR
'XULQJWKHGHOLEHUDWLRQVRQWKLVFDVHWKHUHFDPHWRWKHDWWHQWLRQRIWKH&RXUWUXPRUVDQGDPRUSKRXVELWVRI
QHZV WR WKH HIIHFW WKDW WKH SHWLWLRQHU ZDV RQ WKH YHUJH RI GHDWK EHFDXVH RI KLV KXQJHU VWULNH &XULRXVO\ DQG
RGGO\HQRXJKQRQHRIWKRVHZKRSXUYH\HGWKHUXPRUVHYHUWKRXJKWRIVXEPLWWLQJWRWKH&RXUWDVWDWHPHQWIURP
WKH 6HFUHWDU\ RI 1DWLRQDO 'HIHQVH DV WR WKH VWDWH RI KHDOWK RI WKH SHWLWLRQHU $QG EHFDXVH RI WKLV WKHUH ZDV D
IHHOLQJ RQ WKH SDUW RI WKH PHPEHUV RI WKH &RXUW WKDW WKH\ ZHUH EHLQJ VWDPSHGHG LQWR GHFLGLQJ WKLV FDVH RQ WKH
EDVLV RI WKH SHWLWLRQHU
V KXQJHU VWULNH $V IDU DV , DP FRQFHUQHG , GLG QRW WKLQN LW DGYLVDEOH IRU WKH &RXUW WR
UHTXHVW WKH 6HFUHWDU\ RI 1DWLRQDO 'HIHQVH IRU VXFK VWDWHPHQW EHFDXVH , DVVXPHG WKDW LI WKH SHWLWLRQHU ZHUH
LQGHHGLQDVWDWHZKHUHKLVGHDWKZDVLPPLQHQWKLVFRXQVHOVZRXOGKDYHFRPHIRUZDUGZLWKDODFULW\WRLQIRUPWKH
&RXUWDFFRUGLQJO\DQGWKLVLQVSLWHRIWKHSHWLWLRQHU
VPRWLRQWRZLWKGUDZZKLFKDWWKHWLPHWKHUXPRUVUHDFKHGWKH
&RXUW ZDV VWLOO XQUHVROYHG 7R DUJXH WKDW EHFDXVH WKH SHWLWLRQHU KDG DOUHDG\ ILOHG KLV PRWLRQ WR ZLWKGUDZ WKHUH
ZDVQRPRUHQHHGIRUKLVFRXQVHOVWRJLYHWKH&RXUWLQIRUPDWLRQUHJDUGLQJKLVVXSSRVHGO\GHWHULRUDWLQJKHDOWKLV
WRDVVXPHHUURQHRXVO\WKDWWKH&RXUWZRXOGJUDQWKLVPRWLRQ
,KHUHPDNHRIUHFRUGP\FRQVLGHUHGYLHZWKDWWKHSHWLWLRQHUKDVGHOLEHUDWHO\DQGFDOFXODWLQJO\WULHGWRXWLOL]H
WKH&RXUWDVDIRUXPIRUKLVSURSDJDQGD)LUVWKHVDLGKHSUHIHUUHGWULDOE\WKHFLYLOFRXUWVWRWULDOE\DQ\PLOLWDU\
WULEXQDOEXWLQWKHQH[WEUHDWKKHGHQRXQFHGWKHFLYLOFRXUWVDVODFNLQJLQLQGHSHQGHQFH7KHQKHILOHGDSHWLWLRQ
ZLWK WKH &RXUW WR VWRS WKH SURFHHGLQJV EHIRUH WKH PLOLWDU\ WULEXQDO VKRUWO\ WKHUHDIWHU KH PRYHG WR ZLWKGUDZ LW
VD\LQJ WKDW KLV UHPHGLHV KDG FRPH WRR OLWWOH DQG WRR ODWH 1H[W KH UHQRXQFHG WKH VHUYLFHV RI DOO KLV FRXQVHOV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FLYLOLDQDQGPLOLWDU\\HWKLVODZ\HUVFRQWLQXHGWRILOHSOHDGLQJVLQKLVEHKDOIZLWKWKH&RXUWYLVLWKLPLQKLVTXDUWHUV
DQG DVVLVW KLP LQ WKH SHUSHWXDWLRQ SURFHHGLQJV EHIRUH WKH PLOLWDU\ FRPPLVVLRQ 7KHQ KLV ODZ\HUV ILOHG D
PDQLIHVWDWLRQZLWKWKH&RXUWFODLPLQJWKDWWKHPLOLWDU\FRPPLVVLRQ
VGHFLVLRQWRFRPSHOKLPWRDSSHDUZDVIRUWKH
SXUSRVH RI GHKXPDQL]LQJ DQG KXPLOLDWLQJ KLP EXW ZKHQ WKH &RXUW DFWLQJ RQ KLV PDQLIHVWDWLRQ UHVWUDLQHG WKH
PLOLWDU\FRPPLVVLRQKHGLUHFWHGKLVODZ\HUVWRZLWKGUDZKLVSHWLWLRQVEHIRUHWKH&RXUWLQFOXGLQJKLVSUD\HUIRUD
WHPSRUDU\ UHVWUDLQLQJ RUGHU +H LQIRUPHG WKH QHZVSDSHUV WKDW KLV KXQJHU VWULNH ZDV D SURWHVW DJDLQVW KLV
FRPSHOOHG SUHVHQFH LQ WKH SHUSHWXDWLRQ SURFHHGLQJV EXW ZKHQ VL[ -XVWLFHV RI WKH &RXUW YRWHG IRU KLV ULJKW WR
WRWDO ZDLYHU RI KLV SUHVHQFH KH DQQRXQFHG WKDW KH ZRXOG DWWHQG WKH SURFHHGLQJV $OO RI WKHVH GHYHORSPHQWV
FRXOGLQGHHGEHUHDGWRPHDQRQHRUERWKRIWZRWKLQJVWKDWKLVKXQJHUVWULNHZDVDIWHUDOOSHUKDSVQRWTXLWH
ZKDWLWSXUSRUWHGWREHDQGRUWKDWKHKDVEHHQWULIOLQJDQGFRQWLQXHVWRWULIOHZLWKWKHPLOLWDU\FRPPLVVLRQDQGZLWK
WKH&RXUW
,I,ZHUHWKHSHWLWLRQHUDQG,NQRZ,DPLQQRFHQWWKHUHZRXOGDSSHDUWREHQRUHDVRQIRUPHQRWWRIDFHWKH
SURFHHGLQJVIURQWDOO\DQGHVWDEOLVKP\LQQRFHQFH7KLVLVQRWWRLPSO\WKDWWKHSHWLWLRQHULVJXLOW\RIWKHFKDUJHVLW
LV PHUHO\ WR VWUHVV WKDW KLV EHKDYLRU LV KDUGO\ ZKDW SHUFHSWLYH SHRSOH ZRXOG H[SHFW IURP D PDQ ZKR SURIHVVHV
LQQRFHQFH,ILWLVSURSDJDQGDWKDWLVLQWKHEDFNRIWKHKHDGRIWKHSHWLWLRQHU,ZRXOGWKLQNWKDWWKHKLJKHVWTXDOLW\
SURSDJDQGDLQKLVIDYRULVWRHVWDEOLVKKLVLQQRFHQFHRIWKHFKDUJHVVRRQHVWSRVVLEOH
, ZRXOG OLNH WR DGG P\ RZQ HPSKDVLV WR WKH RSLQLRQ ZULWWHQ E\ -XVWLFH $QWRQLR E\ VWDWLQJ LQ FDSVXOH P\
FRQVLGHUHG YLHZV WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV E\ YLUWXH RI KLV SURFODPDWLRQ RI PDUWLDO ODZ LQ VHQVX
VWULFWLRUH ZKLFK WKH &RXUW KDV DOUHDG\ XSKHOG DV ZLWKLQ WKH DPELW RI KLV SRZHUV XQGHU WKH DQG
&RQVWLWXWLRQV KDV OLNHZLVH WKH SRZHU WR RUJDQL]H PLOLWDU\ FRPPLVVLRQV LQ RUGHU WR FDUU\ RXW WKH REMHFWLYHV DQG
SXUSRVHV RI PDUWLDO UXOH WKH PLOLWDU\ FRPPLVVLRQV FUHDWHG E\ DXWKRULW\ RI WKH SHUWLQHQW SUHVLGHQWLDO GHFUHHV
DUHOHJDODVZHOODVFRQVWLWXWLRQDODVWKHVDLGSUHVLGHQWLDOGHFUHHVKDYHEHHQH[SUHVVO\PDGHSDUWRIWKHODZRI
WKHODQGE\WKHWUDQVLWRU\SURYLVLRQVRIWKH&RQVWLWXWLRQE\WUDGLWLRQDQGKLVWRU\DVZHOODVE\WKHH[SOLFLW
SURYLVLRQV RI WKH VDLG YDOLG SUHVLGHQWLDO GHFUHHV WKH PLOLWDU\ FRPPLVVLRQV VR FUHDWHG KDYH MXULVGLFWLRQ WR WU\
FLYLOLDQV IRU RIIHQVHV QHFHVVDULO\ FRQQHFWHG ZLWK WKH REMHFWLYHV RI PDUWLDO ODZ ZKHWKHU WKHVH RIIHQVHV ZHUH
FRPPLWWHG SULRU WR WKH LQVWLWXWLRQ RI PDUWLDO UXOH RU VXEVHTXHQW WKHUHWR DQG WKLV LQVSLWH RI WKH IDFW WKDW WKH FLYLO
FRXUWVDUHRSHQDQGIXQFWLRQLQJWKHFODLPRIWKHSHWLWLRQHUWKDWEHFDXVHWKHRIIHQVHVZLWKZKLFKKHLVFKDUJHG
ZHUH LQ SRLQW RI WLPH DOOHJHGO\ FRPPLWWHG SULRU WR WKH GHFODUDWLRQ RI PDUWLDO ODZ WKH\ PD\ QRW EH WDNHQ
FRJQL]DQFHRIE\DPLOLWDU\FRPPLVVLRQLJQRUHVRQHLQHVFDSDEOHEDVLFIDFWDQGWKLVLVWKDWWKHFULPHVLPSXWHGWR
KLPDUHDPRQJWKHFULPHVWKDWJDYHFDXVHIRUWKHLQVWLWXWLRQRIPDUWLDOUXOHWKHDUJXPHQWRIWKHSHWLWLRQHUWKDW
WKH &RQVWLWXWLRQ LQ SURYLGLQJ IRU GXH SURFHVV LQ FULPLQDO WULDOV FDQ PHDQ RQO\ WULDO E\ MXGLFLDO FRXUWV QRW RQO\
GHPRQVWUDWHV WKH SHWLWLRQHU
V PLVXQGHUVWDQGLQJ RU PLVUHDGLQJ RI PLOLWDU\ WUDGLWLRQV LQ FLYLOL]HG FRXQWULHV
WKURXJKRXWWKHDJHVEXWDVZHOOIRLVWVDQLQWHUSUHWDWLRQRIWKH&RQVWLWXWLRQQRWZDUUDQWHGE\LWVSKUDVHRORJ\
ZHOOLPEHGGHGLQRXUMXULVSUXGHQFHLVWKHUHFRJQLWLRQWKDWMXVWLFHFDQEHDGPLQLVWHUHGIDLUO\E\PLOLWDU\WULEXQDOV
DQGWKHSRZHURIWKH6XSUHPH&RXUWWRUHYLHZGHDWKVHQWHQFHVGRHVQRWLQFOXGHWKHSRZHUWRUHYLHZGHDWK
VHQWHQFHVLPSRVHGE\PLOLWDU\WULEXQDOV
,QYLHZRIDOOWKDW,KDYHDERYHVWDWHGDQGHVSHFLDOO\LQWKHOLJKWRIP\FRQVLGHUHGRSLQLRQWKDWWKHPLOLWDU\
FRPPLVVLRQV QRZ LQ H[LVWHQFH KDYH MXULVGLFWLRQ WR WU\ FLYLOLDQV MXGLFLDO UHVWUDLQW HIIHFWLYHO\ SUHFOXGHV PH IURP
H[SUHVVLQJP\YLHZVRQZKHWKHUWKH3UHVLGHQWVKRXOGWUDQVIHUWKHFDVHRIWKHSHWLWLRQHUWRDFLYLOFRXUWIRUWULDO
)LQDOO\ LW LV P\ DELGLQJ FRQYLFWLRQ WKDW WKH 3UHVLGHQW ZLOO GR ZLWKLQ WKH LQWHQGPHQW RI KLV VDFUHG RDWK RI RIILFH
ZKDWKHEHOLHYHVLVMXVWIRUWKHSHWLWLRQHUDQGORJLFDOO\DOVRIRUHYHU\RQHHOVHVLPLODUO\VLWXDWHG
0DNDVLDU(VJXHUUD&RQFHSFLRQ-UDQG0DUWLQ--FRQFXU l Z S K w x s W
)(51$1'2-FRQFXUULQJDQGGLVVHQWLQJ
$VZDVPDGHFOHDUDWWKHRSHQLQJRIWKHOHDUQHGDQGFRPSUHKHQVLYHDEO\SHQQHGGHFLVLRQRIWKH&RXUWWKURXJK
-XVWLFH$QWRQLR,DPIRUWKHJUDQWLQJRISHWLWLRQHU
VPRWLRQIRUZLWKGUDZDO0\EUHWKUHQKDGWKRXJKWRWKHUZLVHDQG
FRQVHTXHQWO\GLGSURFHHGWRGLVFXVVWKHPHULWVRIWKHLVVXHVUDLVHG:KLOHDJDLQ,ZRXOGYRWHIRUWKHWUDQVIHURI
WKH FULPLQDO FKDUJHV DJDLQVW SHWLWLRQHU WR FLYLO FRXUWV LW GRHV QRW PHDQ WKDW , DP LQ WRWDO GLVDJUHHPHQW
1RQHWKHOHVVWKHUHPD\EHDQHHGIRUDEULHIH[SUHVVLRQRIRSLQLRQRQP\SDUWDVDPHUHIRUPDOFRQFXUUHQFHRQ
VRPHRIWKHSRLQWVGLVFXVVHGPD\IRUVRPHLPSO\DQLGHQWLW\RIWKRXJKWOXUNLQJGRUPDQWDQGFRQFHDOHG,WLVEHWWHU
WRDYRLGDQ\PLVXQGHUVWDQGLQJ0RUHRYHUDWOHDVWWRP\PLQGLWZRXOGPDNHHYHQPRUHDSSDUHQWWKHWUXWKWKDW
WKHUH FDQ EH QR VXFK WKLQJ DV FRPSOHWH REMHFWLYLW\ LQ FRQVWLWXWLRQDO ODZ D ILHOG ZKHUH WKHUH DUH QR DEVROXWHV
HYHU\FRQVWLWXWLRQDOTXHVWLRQLQYROYLQJDEDODQFLQJRIFRPSHWLQJYDOXHV,WPD\DOVRVHUYHKRSHIXOO\WRLOOXVWUDWH
WKDWRUWKRGR[\LQMXULGLFDOWKRXJKWLVQRWSHUVHDQWLWKHWLFDOWRWKHSURIHVVHGDLPVRIDQLQQRYDWLYHOHJDORUGHU,W
JLYHVPHDQRSSRUWXQLW\OLNHZLVHWRDFNQRZOHGJHWKHQHDWDQGORJLFDOSDWWHUQWRWKHGHFLVLRQWKDWVWUHQJWKHQVLWV
SODXVLELOLW\ 7KH SULQFLSOHV RI ODZ DQQRXQFHG IORZ IURP WKH EDVLF SUHPLVH RI WKH VWHUQ QHFHVVLWLHV RI PDUWLDO ODZ
:KDWERWKHUVPHLVWKDWIURPWKHVWDQGSRLQWRIWULHGDQGWHVWHGFRQFHSWVLQFRQVWLWXWLRQDOODZWKHUHZRXOGVHHP
WREHDQHHGIRUIXUWKHUUHILQHPHQWDVWRWKHVFRSHRIVXFKGRFWULQHVDQGIRUFODULI\LQJGLIIHUHQWLDWLRQ7KDWIRUPH
DWOHDVWZRXOGKDYHEHHQGHVLUDEOH7KHDSSUHKHQVLRQLVHQWHUWDLQHGWKDWDVZRUGHGLQDUDWKHUDOOHQFRPDVVLQJ
PDQQHU WKH\ PD\ \LHOG WKH LPSUHVVLRQ RI D WRWDO VXUUHQGHU WR WKH SUHVVXUH RI HYHQWV DQG WKH GHPDQGV RI WKH
WLPHV &DQGRU WKRXJK FRPSHOV WKH DGPLVVLRQ WKDW LQ WKH ILQDO DQDO\VLV MXULGLFDO WKHRULHV FDQQRW DIIRUG WR EH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
LQVHQVLEOHWRSROLWLFDODQGVRFLDOUHDOLWLHV1RZIRUWKHJURXQGVRIP\FRQFXUUHQFHDQGP\GLVVHQW
,QWKHEHOLHIWKDWSHWLWLRQHU
VPRWLRQWRZLWKGUDZVKRXOGEHJUDQWHG,DPFRPSHOOHGWRGLVVHQW7KLVLVZLWKGXH
UHFRJQLWLRQ RI WKH SULQFLSOH WKDW WKH &RXUW LV YHVWHG ZLWK GLVFUHWLRQ WR JUDQW RU UHIXVH VXFK D SOHD 7KLV
QRWZLWKVWDQGLQJ,DPIXOO\SHUVXDGHGWKDWWKHPRUHDSSURSULDWHUHVSRQVHLVRQHRIDFFHGLQJWRSHWLWLRQHU
VSUD\HU
WKDWDOOFDVHVILOHGRQKLVEHKDOILQWKLV&RXUWEHWHUPLQDWHG7KHDVVXPSWLRQPXVWEHWKDWEHIRUHKHGLGDUULYHDW
VXFKDFRQFOXVLRQKHKDGZHLJKHGZLWKFDUHDQGFLUFXPVSHFWLRQDOOWKHUHOHYDQWDVSHFWVRIWKHVLWXDWLRQ,WFRXOG
YHU\ZHOOEHWKDWKHZDVSURPSWHGWRWDNHVXFKDPRYHWRDYRLGIXUWKHUDQ[LHW\DQGZRUU\RQKLVSDUWFRQVLGHULQJ
WKDWWKHXOWLPDWHRXWFRPHFRXOGEHOLHH[SHFWDWLRQVDQGIUXVWUDWHKRSHV$WDQ\UDWHZLWKKLVPLQGWKXVPDGHXS
DQGZLWKRXWDQ\FRPSHOOLQJUHDVRQLQP\PLQGIRUWKH&RXUWWRNHHSWKHFDVHLQWKHGRFNHWWKHGLVFUHWLRQVKRXOG
EHH[HUFLVHGLQKLVIDYRU1RUGRHVWKHIDFWWKDWKHXVHGUDWKHUKDUVKODQJXDJHLQWKHUHDVRQVJLYHQE\KLPIRUKLV
PRWLRQ RI ZLWKGUDZDO PLOLWDWH DJDLQVW KLV SOHD 7KHUH PXVW EH PRUH XQGHUVWDQGLQJ VKRZQ IRU WKH VWDWH RI KLV
SK\VLFDODQGPHQWDOKHDOWKDIWHUWKLVORQJSHULRGRIFRQILQHPHQWDQGRIODWHRIKLVGHSULYLQJKLPVHOIRIWKHGDLO\
VXVWHQDQFH:KDWLVPRUHWKHFXWWLQJHGJHRIKLVVKDUSDQGSRLQWHGZRUGVPD\EHEOXQWHGE\WKHSHUIRUPDQFHRI
WKLV&RXUWZKLFKLQWKHXOWLPDWHDQDO\VLVLVWKHXOWLPDWHFULWHULRQDVWRZKHWKHURUQRWLWKDVDGHTXDWHO\GLVFKDUJHG
LWVUHVSRQVLELOLWLHVRUOLYHGXSWRWKHWUXVWUHSRVHGLQLW7KHMXGJPHQWLVIRUWKHHQWLUHFRQVWLWXHQF\RILQIRUPHGDQG
FRQFHUQHGFLWL]HQVQRWRISHWLWLRQHUDORQH$VIRUDQ\LQGLYLGXDO-XVWLFH,ZRXOGDVVXPHWKDWZKDWPDWWHUVPRVWLV
WKHYHUGLFWRIKLVFRQVFLHQFH
1RZDVWRWKHQDWXUHRIP\FRQFXUUHQFHZKLFKKDVWREHIXUWKHUTXDOLILHG5LJKWDWWKHRXWVHWPD\,PDNHFOHDU
WKDW,MRLQP\EUHWKUHQRQO\WRWKHH[WHQWWKDWWKHFRQFOXVLRQDUULYHGDWE\WKHPFRQIRUPVWRZKDW,KDGSUHYLRXVO\
H[SUHVVHGLQP\VHSDUDWHRSLQLRQVLQ$TXLQRY3RQFH(QULOH DQG $TXLQR Y &RPPLVVLRQ RQ (OHFWLRQV ,W IROORZV
WKDW ZKHUH WKH RSLQLRQ RI WKH &RXUW UHIOHFWV WKH VWDQG , WRRN , DP LQ DJUHHPHQW 0RUH VSHFLILFDOO\ RQ WKH TXHVWLRQ RI WKH
VFRSHRIWKHFRPSHWHQFHRIDPLOLWDU\FRPPLVVLRQ,ZRXOGSUHGLFDWHP\YRWHRQWKHFRQVWLWXWLRQDOSURYLVLRQWKDWDIIL[HVWR
*HQHUDO2UGHUV1RVDQGWKHVWDWXVRIEHLQJSDUWRIWKHODZRIWKHODQG:LWKGXHUHFRJQLWLRQRIWKHYLJRUZLWK
ZKLFK FRXQVHO IRU SHWLWLRQHU KDG SUHVVHG WKH SRLQW WKDW VXFK D FKDUDFWHU FDQQRW EH LPSUHVVHG RQ WKH DIRUHVDLG JHQHUDO
RUGHUVLIIRXQGLQFRQIOLFWZLWKWKHSUHVHQW&RQVWLWXWLRQ,VWLOOILQGGLIILFXOW\LQDFFRUGLQJFRPSOHWHDFFHSWDQFHWRVXFKDYLHZ
7RGRVRLQP\RSLQLRQZRXOGPHDQFORVLQJRQH
VH\HVWRZKDWZDVLQWHQGHGE\WKH&RQVWLWXWLRQDO&RQYHQWLRQLQVRIDU
DVLWGLGSURYLGHIRUWKHFRQWLQXHGH[LVWHQFHRIDPLOLWDU\FRPPLVVLRQZLWKVXFKSRZHUVDVZHUHWKHQH[HUFLVHG7KLVLVQRW
WR LPSO\ WKRXJK WKDW LQ QR FDVH PD\ D 3UHVLGHQWLDO SURFODPDWLRQ RUGHU GHFUHH RU LQVWUXFWLRQ EH FKDOOHQJHG LQ DSSURSULDWH
VXLWVIRUODFNRIFRQIRUPLW\WRDVSHFLILFSURYLVLRQIRXQGLQWKHSUHVHQW&RQVWLWXWLRQ
,WLVWREHVWUHVVHGIXUWKHUWKDWZHUHLWQRWIRUWKHDERYHPDQGDWHRIWKH7UDQVLWRU\3URYLVLRQVWKHVXEPLVVLRQRI
SHWLWLRQHU DV WR D PLOLWDU\ FRPPLVVLRQ EHLQJ GHYRLG RI MXULVGLFWLRQ RYHU FLYLOLDQV HOLFLWV DSSURYDO 7KH FRQWUROOLQJ
SULQFLSOH WR P\ PLQG LV WKDW VXSSOLHG LQ WKH RSLQLRQ RI WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW LQ 'XQFDQ Y
.DKDQDPRNXDGHFLVLRQLPSUHVVHGZLWKWKHJUHDWHVWUHOHYDQFHLQDVPXFKDVLWLQWHUSUHWHGWKHVSHFLILFVHFWLRQIRXQGLQ
WKH +DZDLLDQ 2UJDQLF $FW ZKLFK ZDV DOVR D IHDWXUH RI WKH 3KLOLSSLQH $XWRQRP\ $FW WKH VRXUFH RI WKH PDUWLDO ODZ
SURYLVLRQ LQ WKH &RQVWLWXWLRQ $V VHW IRUWK LQ WKH 'XQFDQ RSLQLRQ SHQQHG E\ -XVWLFH %ODFN 2XU TXHVWLRQ GRHV QRW
LQYROYHWKHZHOOHVWDEOLVKHGSRZHURIWKHPLOLWDU\WRH[HUFLVHMXULVGLFWLRQRYHUPHPEHUVRIWKHDUPHGIRUFHVWKRVHGLUHFWO\
FRQQHFWHGZLWKVXFKIRUFHVRUHQHP\EHOOLJHUHQWVSULVRQHUVRIZDURURWKHUVFKDUJHGZLWKYLRODWLQJWKHODZVRIZDU:HDUH
QRW FRQFHUQHG ZLWK WKH UHFRJQL]HG SRZHU RI WKH PLOLWDU\ WR WU\ FLYLOLDQV LQ WULEXQDOV HVWDEOLVKHG DV D SDUW RI D WHPSRUDU\
PLOLWDU\JRYHUQPHQWRYHURFFXSLHGHQHP\WHUULWRU\RUWHUULWRU\UHJDLQHGIURPDQHQHP\ZKHUHFLYLOLDQJRYHUQPHQWFDQQRWDQG
GRHVQRWIXQFWLRQ)RU+DZDLLVLQFHDQQH[DWLRQKDVEHHQKHOGE\DQGOR\DOWRWKH8QLWHG6WDWHV1RUQHHGZHKHUHFRQVLGHU
WKH SRZHU RI WKH PLOLWDU\ VLPSO\ WR DUUHVW DQG GHWDLQ FLYLOLDQV LQWHUIHULQJ ZLWK D QHFHVVDU\ PLOLWDU\ IXQFWLRQ DW D WLPH RI
WXUEXOHQFHDQGGDQJHUIURPLQVXUUHFWLRQRUZDU$QGILQDOO\WKHUHZDVQRVSHFLDOL]HGHIIRUWRIWKHPLOLWDU\KHUHWRHQIRUFH
RUGHUVZKLFKUHODWHGRQO\WRPLOLWDU\IXQFWLRQVVXFKDVIRULOOXVWUDWLRQFXUIHZUXOHVRUEODFNRXWV,VHHQRWKLQJLQ0R\HU
Y3HDERG\ WKDWLQDQ\ZD\UXQVFRXQWHUWRWKHDERYHVXPPDU\RIWKHVFRSHRIWKHSRZHURIPLOLWDU\WULEXQDOV7KDWZDVDQDFWLRQDVSRLQWHGRXWE\
-XVWLFH+ROPHVEURXJKWE\WKHSODLQWLIILQHUURUDJDLQVWWKHIRUPHUJRYHUQRURIWKHVWDWHRI&RORUDGRWKHIRUPHUDGMXWDQWJHQHUDORIWKHQDWLRQDOJXDUGRI
WKH VDPH VWDWH DQG D FDSWDLQ RI D FRPSDQ\ RI WKH QDWLRQDO JXDUG IRU DQ LPSULVRQPHQW RI WKH SODLQWLII E\ WKHP ZKLOH LQ RIILFH 7KHQ FDPH WKLV
SRUWLRQRIWKHRSLQLRQ7KHFRPSODLQWDOOHJHVWKDWWKHLPSULVRQPHQWZDVFRQWLQXHGIURPWKHPRUQLQJRI0DUFKWR
WKH DIWHUQRRQ RI -XQH DQG WKDW WKH GHIHQGDQWV MXVWLILHG XQGHU WKH &RQVWLWXWLRQ RI &RORUDGR PDNLQJ WKH JRYHUQRU
FRPPDQGHULQFKLHIRIWKHVWDWHIRUFHVDQGJLYLQJKLPSRZHUWRFDOOWKHPRXWWRH[HFXWHODZVVXSSUHVVLQVXUUHFWLRQDQG
UHSHOLQYDVLRQ,WDOOHJHVWKDWKLVLPSULVRQPHQWZDVZLWKRXWSUREDEOHFDXVHWKDWQRFRPSODLQWZDVILOHGDJDLQVWWKHSODLQWLII
DQGWKDWLQWKDWVHQVHKHZDVSUHYHQWHGIURPKDYLQJDFFHVVWRWKHFRXUWVRIWKHVWDWHDOWKRXJKWKH\ZHUHRSHQGXULQJWKH
ZKROHWLPHEXWLWVHWVRXWSURFHHGLQJVRQKDEHDVFRUSXVLQVWLWXWHGE\KLPEHIRUHWKHVXSUHPHFRXUWRIWKHVWDWHLQZKLFK
WKDW FRXUW UHIXVHG WR DGPLW KLP WR EDLO DQG XOWLPDWHO\ GLVFKDUJHG WKH ZULW &ROR 3DF DQG &ROR
/5$16$P6W5HS3DF,QWKRVHSURFHHGLQJVLWDSSHDUHGWKDWWKHJRYHUQRUKDGGHFODUHGD
FRXQW\WREHLQDVWDWHRILQVXUUHFWLRQKDGFDOOHGRXWWURRSVWRSXWGRZQWKHWURXEOHDQGKDGRUGHUHGWKDWWKHSODLQWLIIVKRXOG
EHDUUHVWHGDVDOHDGHURIWKHRXWEUHDNDQGVKRXOGEHGHWDLQHGXQWLOKHFRXOGEHGLVFKDUJHGZLWKVDIHW\DQGWKDWWKHQKH
VKRXOG EH GHOLYHUHG WR WKH FLYLO DXWKRULWLHV WR EH GHDOW ZLWK DFFRUGLQJ WR ODZ 3ODLQWLII LQ HUURU ZRXOG KROG WKH *RYHUQRU
OLDEOHIRUKLVRUGHURIGHWHQWLRQLQWKHFRXUVHRIVXSSUHVVLQJDQLQVXUUHFWLRQ$VWKHFDVHZDVGLVPLVVHGRQGHPXUUHUE\WKH
&LUFXLW&RXUWLWZDVHOHYDWHGWRWKH8QLWHG6WDWHV6XSUHPH&RXUW,QDIILUPLQJWKHMXGJPHQW-XVWLFH+ROPHVFDWHJRULFDOO\
VWDWHG :KHQ LW FRPHV WR D GHFLVLRQ E\ WKH KHDG RI WKH VWDWH XSRQ D PDWWHU LQYROYLQJ LWV OLIH WKH RUGLQDU\ ULJKWV RI
LQGLYLGXDOVPXVW\LHOGWRZKDWKHGHHPVWKHQHFHVVLWLHVRIWKHPRPHQW3XEOLFGDQJHUZDUUDQWVWKHVXEVWLWXWLRQRIH[HFXWLRQ
SURFHVVIRUMXGLFLDOSURFHVV6HH.HHO\Y6DQGHUV86/HG7KLVZDVDGPLWWHGZLWKUHJDUGWR
NLOOLQJPHQLQWKHDFWXDOFODVKRIDUPVDQGZHWKLQNLWREYLRXVDOWKRXJKLWZDVGLVSXWHGWKDWWKHVDPHLVWUXHRIWHPSRUDU\
GHWHQWLRQ WR SUHYHQW DSSUHKHQGHG KDUP ,W GRHV DSSHDU WR PH WKHQ DQG WKLV , VD\ ZLWK GXH UHVSHFW WKDW LW LV D UDWKHU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
IRUFHGLQWHUSUHWDWLRQWRH[WUDFWIURPWKHDERYHH[SOLFLWGHFODUDWLRQRI-XVWLFH+ROPHVWKHPHDQLQJWKDWPLOLWDU\WULEXQDOVDUH
YHVWHGZLWKMXULVGLFWLRQRYHUFLYLOLDQV:KDWZDVLQYROYHGZDVDGHWHQWLRQQRWDWULDO8QGHUWKHYLHZ,HQWHUWDLQWKDW'XQFDQ
Y.DKDQDPRNXVXSSOLHVWKHDSSOLFDEOHSULQFLSOHXQGHUWKH&RQVWLWXWLRQWKHFLWDWLRQVIURP:LQWKURSDQG)DLUPDQ IRXQG
LQWKHRSLQLRQRIWKH&RXUWDUHIRUPHOHVVWKDQSHUVXDVLYH:KDWFRPSHOVFRQFXUUHQFHRQP\SDUWWRUHSHDWLVWKHODZ
RI WKH ODQG VHFWLRQ IRXQG LQ WKH 7UDQVLWRU\ 3URYLVLRQV $EVHQW WKDW SURYLVLRQ , ZRXOG EH XQDEOH WR \LHOG WR WKH FRQFOXVLRQ
UHDFKHGE\P\EUHWKUHQRQWKHTXHVWLRQRIMXULVGLFWLRQ
7KH UHFRJQLWLRQ LPSOLFLW LQ WKH DERYH FRQVWLWXWLRQDO SUHFHSW DV WR WKH FRPSHWHQFH RI D PLOLWDU\ FRPPLVVLRQ WR
FRQGXFW FULPLQDO WULDOV RI FHUWDLQ VSHFLILHG RIIHQVHV WR P\ PLQG FDUULHV ZLWK LW WKH GXW\ WR UHVSHFW DOO WKH
FRQVWLWXWLRQDO ULJKWV RI DQ DFFXVHG ,W LV IURP WKDW SHUVSHFWLYH WKDW D GLVFXVVLRQ RI WKH GXH SURFHVV JXDUDQWHH
JDLQVVLJQLILFDQFH,WKDVDFRQQRWDWLRQERWKVXEVWDQWLYHDQGSURFHGXUDO$VWRWKHODWWHUDVSHFWLWLVWUXHWKDWLW
KDV DW LWV FRUH WR IROORZ WKH FODVVLF IRUPXODWLRQ RI :HEVWHU WKH UHTXLUHPHQW RI D KHDULQJ EHIRUH FRQGHPQDWLRQ
DQGDSURFHVVRIUDWLRQDOLQTXLU\EXWLWKDVDPXFKZLGHUUDGLDWLRQH[WHQGLQJWRDOOWKHOHJDOVDIHJXDUGVHQMR\HG
E\DSHUVRQLQGLFWHGIRUDQRIIHQVH6RLWKDVFRPHWREHLQWKH8QLWHG6WDWHVZKHUHLWLVGHHPHGWRLQFOXGHWKH
ULJKWWREHIUHHIURPXQUHDVRQDEOHVHDUFKHVDQGVHL]XUHVDQGWRKDYHH[FOXGHGIURPFULPLQDOWULDOVDQ\HYLGHQFH
LOOHJDOO\VHL]HG WKHULJKWWREHIUHHRIFRPSHOOHGVHOILQFULPLQDWLRQ WKHULJKWWRFRXQVHO WKHULJKWWRDVSHHG\
DQGSXEOLF WULDOWRFRQIURQWDWLRQRIRSSRVLQJZLWQHVVHVWRFRPSXOVRU\SURFHVVIRUREWDLQLQJZLWQHVVHVWKHULJKWWR
DMXU\WULDODQGWKHULJKWDJDLQVWGRXEOHMHRSDUG\6XFKDQDSSURDFKLVQRWXQFRQJHQLDOLQRXUMXULVGLFWLRQ $ UHODWHG
PDWWHULVWKHTXHVWLRQRIGXHSURFHVVDQGSUHOLPLQDU\LQYHVWLJDWLRQ,KDYHP\UHVHUYDWLRQVDVWRWKHWRQHRIFHUWLWXGHLQWKH
RSLQLRQRIWKHFRXUWFRQFHUQLQJWKHODWWHU
VEHLQJEHUHIWRIDQ\FRQVWLWXWLRQDOVLJQLILFDQFH,WZDVWKHUXOLQJLQ3HRSOHY6LHUUD
WKDW WKH SULQFLSOH XQLQWHUUXSWHGO\ DGKHUHG WR >LV@ WKDW RQO\ ZKHUH DQ DFFXVHG LV KHOG WR DQVZHU D FULPLQDO RIIHQVH LQ DQ
DUELWUDU\ RU RSSUHVVLYH PDQQHU LV WKHUH D GLVUHJDUG WKHUHRI 7KH UHTXLUHPHQW RI WKH SURFHHGLQJ QRW EHLQJ XQMXVW RU
XQUHDVRQDEOH PXVW EH PHW 7KLV LV QRW WR UXOH RXW FDVHV ZKHUH VXFK LQILUPLW\ FRXOG EH SUHGLFDWHG RQ D VKRZLQJ WKDW WKH
GLVUHJDUGRIWKLVSURFHGXUDOVDIHJXDUGGLGLQIHFWWKHSURVHFXWLRQZLWKXQIDLUQHVV,QWKDWVHQVHZKDWZDVKHOGLQ3HRSOH Y
0RQWRQDVWRVXFKDIDLOLQJQXOOLI\LQJWKHSURFHHGLQJEHFDXVHRIWKHGXHSURFHVVSURWHFWLRQFRXOGVWLOOEHFRQFHLYDEO\UHOLHG
XSRQ7KXVZHFRPHWRZKDWIRUPHLVWKHFUXFLDOLVVXHSRVHGODEHOHGWKHSULQFLSDOTXHVWLRQLQWKHPHPRUDQGXPRI
SHWLWLRQHU +H ZRXOG LQYRNH WKH KLJKO\SUL]HG LGHDO LQ DGMXGLFDWLRQ DQQRXQFHG LQ *XWLHUUH] OLNHZLVH D GXH SURFHVV
UHTXLUHPHQWWKDWDSDUW\WRDWULDOLVHQWLWOHGWRQRWKLQJOHVVWKDQWKHFROGQHXWUDOLW\RIDQLPSDUWLDOMXGJH+LVIHDUVQRW
GHYRLG RI SODXVLELOLW\ SURFHHG IURP UHVSRQGHQW &RPPLVVLRQ KDYLQJ EHHQ FUHDWHG E\ WKH 3UHVLGHQW
V 2UGHU DQG VXEMHFW WR
KLVFRQWURODQGGLUHFWLRQEHLQJXQDEOHWRLJQRUHKLVFKDUDFWHUL]DWLRQWKDWWKHHYLGHQFHDJDLQVWSHWLWLRQHUZDVQRWRQO\VWURQJ
>EXW@ RYHUZKHOPLQJ ,W LV WR WKDW LPSODFDEOH WHQHW RI REMHFWLYLW\ DQG QHXWUDOLW\ RQH RI FRQVWLWXWLRQDO GLPHQVLRQ WKDW
DSSHDOLVPDGH)RU*XWLHUUH]KDVEHHQIROORZHGVXEVHTXHQWO\LQDQXQEURNHQOLQHRIGHFLVLRQVZLWKDQLPSUHVVLYHFRQFRUG
RIRSLQLRQ7KDWIRUSHWLWLRQHULVWREXWWUHVVDVWDQGWKDWPLUURUVWKHUHDOLWLHVWRUHLQIRUFHWKHVROLGLW\RIKLVSRVLWLRQ)RU
ZDV LW QRW 6WRHVVLQJHU ZKR SRLQWHG RXW WKDW WKHUH PD\ EH DW WLPHV D WHQGHQF\ GLIILFXOW WR UHVLVW LQ VXERUGLQDWH PLOLWDU\
DJHQFLHVWRYLHZPDWWHUVLQWKHOLJKWVXSSOLHGE\SUHYLRXVSURQRXQFHPHQWVRIWKRVHKLJKHUXSLQWKHUDQNVDQGWRUHVSRQGWR
VLWXDWLRQVOHVVRQWKHEDVLVRIHPSLULFDOHYLGHQFHEXWPRUHRQWKDWRIFRQIRUPLW\WRDSRVLWLRQRIILFLDOO\WDNHQ,GRQRWKDYH
WRJRWKDWIDU7KHUHLVDFFHSWDQFHRQP\SDUWWKDWDVWKHRSLQLRQRIWKH&RXUWVWDWHVUHVSRQGHQWPLOLWDU\FRPPLVVLRQPD\
EHWUXVWHGWREHIDLUDQGWKDWDWDQ\UDWHWKHUHDUHVWLOOYDULRXVDSSHDOVLQWKHRIILQJ7KXVWKHUHDUHEXLOWLQGHIHQVHVDJDLQVW
DQ\HUURQHRXVRUXQIDLUMXGJPHQW7KHUHLVKRZHYHUWKLVRWKHUSRLQWWRFRQVLGHU)RUWKH*XWLHUUH]UXOLQJDVQRZLQWHUSUHWHG
GRHVQRWRQO\JXDUGDJDLQVWWKHUHDOLW\EXWOLNHZLVHWKHDSSHDUDQFHRISDUWLDOLW\7KDWZRXOGDUJXHVWURQJO\IRUWKHWUDQVIHURI
WKH WULDO RI WKH FULPLQDO FKDUJHV DJDLQVW SHWLWLRQHU WR FLYLO FRXUWV 1RU ZRXOG KH EH WKH RQO\ RQH WKHUHE\ EHQHILWHG
5HVSRQGHQW &RPPLVVLRQ ZRXOG EH VSDUHG IURP SURFHHGLQJ ZLWK D FDVH ZKHUH IURP WKH VWDUW LQ YLHZ RI WKH SHFXOLDU
FLUFXPVWDQFHV LWV ERQD ILGHV KDG EHHQ RSHQ WR TXHVWLRQ DOWKRXJK DGPLWWHGO\ ODFNLQJ IDFWXDO IRXQGDWLRQ 7KH 3UHVLGHQW
OLNHZLVH ZRXOG EH DEVROYHG IURP DQ\ DGYHUVH LI XQIRXQGHG FULWLFLVP 7KH JUHDWHVW JDLQ RI FRXUVH ZRXOG EH IRU WKH
DGPLQLVWUDWLRQRIMXVWLFH7KHUHLVUHOHYDQFHWRWKLVH[FHUSWIURP3DODQJY=RVD7KLVYROXQWDU\LQKLELWLRQE\UHVSRQGHQW
-XGJHLVWREHFRPPHQGHG+HKDVOLYHGXSWRZKDWLVH[SHFWHGRIRFFXSDQWVRIWKHEHQFK7KHSXEOLFIDLWKLQWKHLPSDUWLDO
DGPLQLVWUDWLRQRIMXVWLFHLVWKXVUHLQIRUFHG,WLVQRWHQRXJKWKDWWKH\GHFLGHFDVHVZLWKRXWELDVDQGIDYRULWLVP,WGRHVQRW
VXIILFH WKDW WKH\ LQ IDFW ULG WKHPVHOYHV RI SUHSRVVHVVLRQV 7KHLU DFWXDWLRQ PXVW LQVSLUH WKDW EHOLHI 7KLV LV DQ LQVWDQFH
ZKHUH DSSHDUDQFH LV MXVW DV LPSRUWDQW DV WKH UHDOLW\ /LNH &DHVDU
V ZLIH D MXGJH PXVW QRW RQO\ EH SXUH EXW EH\RQG
VXVSLFLRQ $W OHDVW WKDW LV DQ LGHDO ZRUWK VWULYLQJ IRU :KDW LV PRUH WKHUH LV GHIHUHQFH WR WKH GXH SURFHVV PDQGDWH
1HFHVVDULO\ WKHQ WKHUH LV FRPSOHWH DFFHSWDQFH RQ P\ SDUW RI WKH WKRXJKW H[SUHVVHG LQ WKH RSLQLRQ RI WKH &RXUW WKDW WKH
3UHVLGHQW LV QRW SUHFOXGHG IURP SXUVXLQJ IXUWKHU D QRWLRQ SUHYLRXVO\ H[SUHVVHG E\ KLP FRQFHUQLQJ WKH SRVVLEOH WUDQVIHU RI
WKHSURFHHGLQJVDJDLQVWSHWLWLRQHUWRWKHFLYLOFRXUWV
$IHZZRUGVPRUH,WLVWREHDGPLWWHGWKDWLQFRSLQJZLWKWKHXUJHQFLHVRIWKHWLPHVLQDFFRUGDQFHZLWKZKDWLV
RUGDLQHG E\ WKH IXQGDPHQWDO ODZ DQG WKXV KDYH LWV SURPLVH IXOILOOHG WKLV &RXUW LV FRPSHOOHG WR HQWHU D GRPDLQ
PXFKOHVVFOHDUO\PDSSHGRXWWKDQEHIRUH,WKDVWRILQGLWVZD\DVEHVWLWFDQZLWKWKHOLJKWVXSSOLHGE\DSSOLFDEOH
SUHFHGHQWVDQGWKHSURPSWLQJVRIUHDVRQDWWLPHVUHQGHUHGREVFXUHE\WKHFORXGVRIWKHHPHUJHQF\FRQGLWLRQV
0RUHRYHU WKHUH PXVW EH DQ DZDUHQHVV WKDW WKH FRPSOH[LWLHV RI DQ HUD PD\ QRW \LHOG WR WKH VLPSOLFLWLHV RI D
FRQVWLWXWLRQDO IXQGDPHQWDOLVP DV ZHOO DV RI WKH SLWIDOOV RI PHUHO\ GRFWULQDLUH LQWHUSUHWDWLRQV ,W FDQQRW DSSO\
SUHFHSWV ZLWK LQIOH[LEOH ULJLGLW\ WR IDVWFKDQJLQJ VLWXDWLRQV 7KH QRWLRQ RI ODZ LQ IOX[ FDUULHV LW IDU LQGHHG IURP D
IL[HGPRRULQJLQFHUWDLQW\7KHUHPXVWEHLWFDQQRWEHGHQLHGJUHDWHUVHQVLWLYLW\WRWKHVKLIWVLQDSSURDFKFDOOHG
IRU E\ WKH WURXEOHG SUHVHQW 1RQHWKHOHVV WR SDUDSKUDVH &DUGR]R FDUH LV WR EH WDNHQ OHVW WLPHWHVWHG GRFWULQHV
PD\ VKULYHO LQ WKH HIIXOJHQFH RI WKH RYHUSRZHULQJ UD\V RI PDUWLDO UXOH 7KHUH PXVW EH DQ HIIRUW WR UHPDLQ
FRQVLVWHQWZLWKWKHROGDOWKRXJKUHOHYDQWWRWKHQHZ,WLVP\YLHZWKDWWKHUHE\WKHUHLVILGHOLW\WRWKHFRQFHSWRIWKH
&RQVWLWXWLRQQRWRQO\DVDEURDGFKDUWHURISRZHUVWRUHVROYHFRQIOLFWLQJLVVXHVDQGVRFLDOSUREOHPVDPHDQVRI
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
RUGHULQJWKHOLIHRIWKHQDWLRQLQWLPHVRIQRUPDOF\DVZHOODVRIFULVLVEXWDOVRDVDFLWDGHORIFLYLOOLEHUWLHV
7((+$1.((-GLVVHQWLQJ
7KLVRSLQLRQIRUWKHJUDQWLQJRISHWLWLRQHU
VZLWKGUDZDOPRWLRQDQGLQYLHZRILWVGHQLDOIRUWKHJUDQWLQJRIWKHZULW
RI SURKLELWLRQ DJDLQVW UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ DV SUD\HG IRU LQ WKH SHWLWLRQ LV LVVXHG SXUVXDQW WR WKH
&RXUW
V5HVROXWLRQRI$SULOZKLFKUXOHGDVIROORZV Wr x
vK T Z k
7KH&RXUWE\DYRWHRIVHYHQWRWKUHH5HVROYHGWR'(1<SHWLWLRQHU
VPRWLRQIRUZLWKGUDZDORIWKH
SHWLWLRQDQGRIDOOPRWLRQVDQGLQFLGHQWVUHODWHGWKHUHWR&DVWUR%DUUHGR$QWRQLR(VJXHUUD$TXLQR
&RQFHSFLRQ-UDQG0DUWLQ--YRWHGWRGHQ\WKHPRWLRQ)HUQDQGR7HHKDQNHHDQG0XxR]3DOPD
--YRWHGWRJUDQWWKHPRWLRQ
7KHUH EHLQJ QR VXIILFLHQW YRWHV WR GHFODUH WKDW WKH UHVSRQGHQW 0LOLWDU\ &RPPLVVLRQ LV ZLWKRXW
MXULVGLFWLRQ RYHU WKH SHQGLQJ FULPLQDO FDVHV ILOHG DJDLQVW WKH SHWLWLRQHU DQG WKDW LW DFWHG ZLWK JUDYH
DEXVHRIGLVFUHWLRQLQFRQGXFWLQJWKHSHUSHWXDWLRQRIWHVWLPRQ\SURFHHGLQJVWKH&RXUW5HVROYHGWR
OLIW HIIHFWLYH LPPHGLDWHO\ WKH UHVWUDLQLQJ RUGHU LVVXHG RQ $SULO 7HHKDQNHH DQG 0XxR]
3DOPD--YRWHGWRPDLQWDLQWKHUHVWUDLQLQJRUGHU
2Q WKH TXHVWLRQ RI ZDLYHU RI WKH SUHVHQFH RI WKH SHWLWLRQHU LQ WKH SHUSHWXDWLRQ RI WHVWLPRQ\
SURFHHGLQJV)HUQDQGR7HHKDQNHH%DUUHGR$QWRQLR0XxR]3DOPDDQG$TXLQR--YRWHGLQIDYRU
RIXSKROGLQJWKHSHWLWLRQHU
VULJKWRIWRWDOZDLYHURIKLVSUHVHQFH&DVWUR(VJXHUUD&RQFHSFLRQ-U
DQG0DUWLQ--YRWHGLQIDYRURITXDOLILHGZDLYHUWKDWLVWKDWWKHDFFXVHGFRXOGZDLYHKLVSUHVHQFH
H[FHSW LQ WKH LQVWDQFHV ZKHUH VXFK SUHVHQFH LV QHHGHG IRU KLV LGHQWLILFDWLRQ E\ WKH SURVHFXWLRQ
ZLWQHVVHV
7KH H[WHQGHG UHDVRQHG UHVROXWLRQ RU GHFLVLRQ DQG WKH VHSDUDWH H[WHQGHG UHDVRQHG FRQFXUULQJ
DQGRUGLVVHQWLQJRSLQLRQVZLOOEHUHOHDVHGQH[WZHHN
0DNDOLQWDO&-WRRNQRSDUWIRUEHLQJDSDUW\UHVSRQGHQW0DNDVLDU-LVRQOHDYH
,,YRWHIRUWKHJUDQWLQJRISHWLWLRQHU
VPRWLRQWRZLWKGUDZKLVSHWLWLRQDQGDOORWKHUSHQGLQJPRWLRQVDQGPDWWHUV
7RSDUDSKUDVHDQGFLWHWKH&KLHI-XVWLFH
VUHDVRQVLQFDVWLQJDYRWHIRUJUDQWLQJDVLPLODUPRWLRQIRUZLWKGUDZDORI
SHWLWLRQILOHGE\IRUPHU-RVH:'LRNQRLQWKH+DEHDV&RUSXVFDVHVZKLFKZDVDOVRGHIHDWHGIRUODFNRIQHFHVVDU\
YRWHVVXFKZLWKGUDZDOZRXOGQRWHPDVFXODWHWKHLVVXHVRISDUDPRXQWSXEOLFLQWHUHVWWKDWQHHGWREHUHVROYHGDVLQYRNHG
E\WKHPDMRULW\IRUWKH\PD\EHGXO\UHVROYHGLQWKHRWKHUFDVHVZKLFKUHPDLQSHQGLQJVXFKDVWKHHDUOLHUDQGXUJHQWOHDG
FDVH RI *XPDXD YV (VSLQR DQG 0LOLWDU\ &RPPLVVLRQ 1R ZKLFK UDLVHV WKH VDPH IXQGDPHQWDO TXHVWLRQ RI ZKHWKHU
PLOLWDU\ WULEXQDOV KDYH MXULVGLFWLRQ WR WU\ FLYLOLDQV ZKHUHLQ SHWLWLRQHU ZDV VHQWHQFHG RQ 0DUFK WR GHDWK E\ ILULQJ
VTXDGZKLFKVHQWHQFHZDVDIILUPHGRQ6HSWHPEHUE\WKH3UHVLGHQWDQGZKLFKKDVORQJEHHQSHQGLQJGHFLVLRQ
DQG VLQFH LW LV SHWLWLRQHU $TXLQR
V OLIH DQG OLEHUW\ WKDW DUH DW VWDNH KLV FKRLFH WR UHQRXQFH KLV RZQ SHWLWLRQ TXHVWLRQLQJ WKH
MXULVGLFWLRQRIUHVSRQGHQWPLOLWDU\FRPPLVVLRQWRWU\WKHFDVHVILOHGDJDLQVWKLPDQGWKHVXEVHTXHQWLQFLGHQWVDQGWRUHPRYH
WKH FDVH IURP WKLV &RXUW
V FRJQL]DQFH VKRXOG EH UHVSHFWHG UHJDUGOHVV RI WKH IDFW WKDW RQH GLVDJUHHG ZLWK PDQ\ RI KLV
UHDVRQVIRUVRGRLQJVLQFHRQHFRXOGQRWHVFDSHDVHQVHRILURQ\LQWKLV&RXUW
VWXUQLQJGRZQWKHSOHDWRZLWKGUDZDQG
WKHQ UXOLQJ DGYHUVHO\ WR KLP RQ WKH PHULWV RI KLV SHWLWLRQ ,W PD\ EH DGGHG WKDW VLQFH WKH PDMRULW\ ZKR YRWHG WR GHQ\ WKH
ZLWKGUDZDOPRWLRQQXPEHUVRQO\VHYHQRXWRIWHQ-XVWLFHVWDNLQJSDUWLQWKHGHOLEHUDWLRQVDVRIWKHGDWHRILVVXDQFHRIWKH
&RXUW
V5HVROXWLRQRI$SULOZKLFKGHQLHGWKHPRWLRQWKHPDMRULW\RSLQLRQZRXOGIDOOVKRUWRIWKHUHTXLUHGQXPEHURI
HLJKW -XVWLFHV WR UHQGHU D GHFLVLRQ RQ WKH PHULWV 7KH 6ROLFLWRU *HQHUDO
V JURXQGV IRU RSSRVLQJ ZLWKGUDZDO DUH QRW
SHUVXDVLYH ,Q KLV ILUVW RSSRVLWLRQ RI $SULO ZKHUH KH QRWHV WKDW SHWLWLRQHU KDV FKRVHQ WR GUDPDWL]H KLV SURWHVW E\
VWDJLQJ D KXQJHU VWULNH 3HWLWLRQHU
V PRWLRQ LV WKXV VLOHQWO\ HORTXHQW LQ LWV DYRLGDQFH RI WKH UHDVRQV IRU ZLWKGUDZDO KLV
SUD\HUWKDWLIWKHSHWLWLRQHU
VPRWLRQLVJUDQWHGLWVKRXOGEHZLWKSUHMXGLFHLVLQFRQVLVWHQWZLWKKLVSRVWXUHWKDWWKHSHWLWLRQ
LV SUHPDWXUH DQG ZLWK WKH IDFW WKDW WKH FKDUJHV DJDLQVW SHWLWLRQHU DUH VWLOO SHQGLQJ UHLQYHVWLJDWLRQ DV RUGHUHG E\ WKH
3UHVLGHQW ,Q KLV VHFRQG RSSRVLWLRQ RI $SULO KH DYHUV WKDW WKH *RYHUQPHQW VHHNV RQO\ WR SUHVHQW WKH HYLGHQFH
VXSSRUWLQJ WKH FKDUJHV RI PXUGHU LOOHJDO SRVVHVVLRQ RI ILUHDUPV DQG VXEYHUVLRQ DJDLQVW WKH SHWLWLRQHU DQG LI WKLV EH VR
SHWLWLRQHU
VZLWKGUDZDORIKLVSHWLWLRQDWEDUSUHFLVHO\FOHDUVWKHZD\RIDOOMXGLFLDOREVWDFOHVIRUWKHSURVHFXWLRQWRGRVR
3HWLWLRQHU
VZLWKGUDZDOVKRXOGEHSURSHUO\JUDQWHGLQSXUVXDQFHRIWKHHVWDEOLVKHGSULQFLSOHWKDWWKHMXGLFLDOSRZHU
LVH[HUFLVHGRQO\ZKHQQHFHVVDU\IRUWKHUHVROXWLRQRIDQDFWXDOFDVHDQGFRQWURYHUV\SDUWLFXODUO\LQYLHZRIWKH
UHVSRQGHQWV
VWDQGLQWKHLUDQVZHUWKDWWKHSHWLWLRQKDVEHHQSUHPDWXUHO\ILOHG
-XGLFLDODEVWHQWLRQWKHQZRXOGSURYLGHWKH&RXUWZLWKWLPHDQGRSSRUWXQLW\WRSRQGHUDQGGHOLEHUDWHRQWKHEDVLF
FRQVWLWXWLRQDOTXHVWLRQVLQYROYHGDQGWKHLUUDPLILFDWLRQVZKLFKFRQFHUQLQWHUDOLDWKHVXSUHPDF\RIFLYLOLDQDXWKRULW\
RYHUWKHPLOLWDU\WKHULJKWRIFLYLOLDQVWRMXGLFLDOSURFHVVDVDJDLQVWWKHH[HFXWLYHSURFHVVRIPLOLWDU\WULEXQDOVWKH
XSKROGLQJRI-XGLFLDO3RZHUDVYHVWHGE\WKH&RQVWLWXWLRQLQWKH6XSUHPH&RXUWDQGLQVXFKLQIHULRUFRXUWVDVPD\
EHHVWDEOLVKHGE\ODZDQGWKHUHFRJQLWLRQRIWKHLQGLYLGXDO
VOLEHUWLHVDVJXDUDQWHHGE\WKH%LOORI5LJKWVHYHQLQD
VWDWHRIPDUWLDOODZ
,, 6LQFH WKH PDMRULW\ KDV QHYHUWKHOHVV UHVROYHG WR JR LQWR WKH PHULWV RI WKH FDVH DQG WKH WUDQVFHQGHQWDO
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FRQVWLWXWLRQDO LVVXHV D EULHI VWDWHPHQW RI WKH IDFWXDO EDFNJURXQG LV UHTXLUHG IRU WKH SURSHU FRQVLGHUDWLRQ RI WKH
LVVXHVRQWKHPHULWV
3HWLWLRQHUDIWHUKDYLQJEHHQVHUYHGRQ$XJXVWDQGDWKLVGHWHQWLRQTXDUWHUVZLWKFRSLHVRIWKHVL[
FULPLQDO FKDUJHV ILOHG DJDLQVW KLP ZLWK UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ ILOHG RQ $XJXVW KLV RULJLQDO
SHWLWLRQ DW EDU IRU SURKLELWLRQ TXHVWLRQLQJ WKH MXULVGLFWLRQ RI PLOLWDU\ WULEXQDOV LQ WKH DEVHQFH RI D VWDWH RI ZDU RU
EHOOLJHUHQF\ RYHU FLYLOLDQV OLNH KLP SDUWLFXODUO\ IRU FLYLO RIIHQVHV DOOHJHGO\ FRPPLWWHG EHIRUH WKH SURFODPDWLRQ RI
PDUWLDOODZDQGFRPSODLQLQJRIYLRODWLRQRIKLVFRQVWLWXWLRQDOULJKWVLQWKDWKHZDVGHSULYHGRIGXHSURFHVVDQGWKH
YHVWHG ULJKW WR SUHOLPLQDU\ LQYHVWLJDWLRQ DV SURYLGHG E\ ODZ DQG WKH DVVLVWDQFH RI FRXQVHO ZLWK ULJKW WR FURVV
H[DPLQHWKHZLWQHVVHVDJDLQVWKLP
3HWLWLRQHU IXUWKHU DOOHJHG WKDW WKH PLOLWDU\ WULEXQDOV DUH PHUH LQVWUXPHQWV DQG VXEMHFW WR WKH FRQWURO RI WKH
3UHVLGHQW DV FUHDWHG E\ KLP XQGHU WKH *HQHUDO 2UGHUV LVVXHG E\ KLP DV &RPPDQGHULQ&KLHI RI WKH $UPHG
)RUFHV RI WKH 3KLOLSSLQHV DQG WKDW KH KDG DOUHDG\ EHHQ SXEOLFO\ LQGLFWHG DQG DGMXGJHG JXLOW\ E\ WKH 3UHVLGHQW RI WKH
FKDUJHVLQDQDWLRQZLGHSUHVVFRQIHUHQFHKHOGRQ$XJXVWIROORZLQJWKH3OD]D0LUDQGDERPELQJRI$XJXVW
DQGWKHVXVSHQVLRQRIWKHSULYLOHJHRIWKHZULWRIKDEHDVFRUSXVXQGHU3URFODPDWLRQ1RRQ$XJXVW
:+(5($6%HQLJQR6$TXLQR-UDQGKLV&RXQVHOKDYHUHSHDWHGO\FRPSODLQHGRUDOO\DQGLQZULWLQJ
WKDWWKHDFFXVHGKDVEHHQGHQLHGKLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVDQGKDYHRSHQO\TXHVWLRQHG
WKHUHJXODULW\DQGIDLUQHVVRIWKHDSSOLFDWLRQWRKLPRIWKHHVWDEOLVKHGSURFHGXUHVDQFWLRQHGE\ODZ
DQGSUDFWLFH
:+(5($6 LW LV QHFHVVDU\ IRU WKH DERYH SXUSRVH WKDW D &RPPLWWHH EH FUHDWHG WR FRQGXFW D UH
LQYHVWLJDWLRQRIVDLGFKDUJHVWRGHPRQVWUDWHWKDWHYHU\WKLQJLVEHLQJGRQHWRLQVXUHXWPRVWIDLUQHVV
LPSDUWLDOLW\ DQG REMHFWLYLW\ LQ WKH SURVHFXWLRQ RI WKH FKDUJHV DJDLQVW WKH DFFXVHG DQG WR GHWHUPLQH
ZKHWKHU UHDOO\ WKHUH LV UHDVRQDEOH JURXQG WR EHOLHYH WKDW WKH RIIHQVHV FKDUJHG ZHUH LQ IDFW
FRPPLWWHGDQGWKHDFFXVHGLVSUREDEO\JXLOW\WKHUHRI
[[[[[[[[[
7KH &RPPLWWHH VKDOO FRQYHQH LPPHGLDWHO\ FRQGXFW WKH SUHOLPLQDU\ LQYHVWLJDWLRQ LQ WKH PRVW
H[SHGLWLRXVPDQQHUDQGVXEPLWLWVILQGLQJVWRWKH6HFUHWDU\RI-XVWLFH
7R SUHYHQW D IDLOXUH RU GHOD\ RI MXVWLFH DQ\ WHVWLPRQLDO HYLGHQFH SUHVHQWHG EHIRUH WKH &RPPLWWHH
PD\EHXVHGLQDQ\SURFHHGLQJRUDFWLRQEHIRUHDQ\FRXUWRUWULEXQDOFLYLORUPLOLWDU\ZLWKRXWQHHGRI
SUHVHQWLQJWKHZLWQHVVRUZLWQHVVHVZKRWHVWLILHGLQFDVHVXFKZLWQHVVRUZLWQHVVHVKDYHGLHGRUOHIW
WKHFRXQWU\RUEHFRPHXQDEOHWRWHVWLI\
7KH FKDUJHV DJDLQVW SHWLWLRQHU DQG KLV FRDFFXVHG ZHUH WKXV EURXJKW EDFN WR WKH VWDJH RI SUHOLPLQDU\
LQYHVWLJDWLRQ2Q$XJXVWUHVSRQGHQWPLOLWDU\FRPPLVVLRQPHWDQGRUGHUHGWKDWWKHKHDULQJRIWKHFDVHV
EH SRVWSRQHG LQGHILQLWHO\ WR DZDLW WKH RXWFRPH RI WKH UHLQYHVWLJDWLRQ RUGHUHG XQGHU WKH VDLG $GPLQLVWUDWLYH
2UGHU
7KH 6HFUHWDULHV RI -XVWLFH DQG RI 1DWLRQDO 'HIHQVH GHVLJQDWHG WKHLU UHSUHVHQWDWLYHV 7KH &KLHI -XVWLFH DVNHG
UHWLUHG-XVWLFH-%/5H\HVEXWWKHODWWHURQ$XJXVWGHFOLQHGWKHGHVLJQDWLRQDQGDOVRGHFOLQHGDV,%3
SUHVLGHQWWRGHVLJQDWHDUHSUHVHQWDWLYHWRWKHVSHFLDOFRPPLWWHHRQJURXQGVRILOOHJDOLW\RIWKHRUGHU3HWLWLRQHU
OLNHZLVHGHFOLQHGWRGHVLJQDWHKLVUHSUHVHQWDWLYH
3HWLWLRQHUILOHGRQ6HSWHPEHUKLVILUVWVXSSOHPHQWDOSHWLWLRQWRLQFOXGHWKHVHGHYHORSPHQWVDQGWRLQVLVW
WKDW KH EH JUDQWHG KLV ULJKW WR SUHOLPLQDU\ LQYHVWLJDWLRQ DV SUHVFULEHG E\ VWDWXWRU\ ODZ WR EH FRQGXFWHG E\ WKH
FRXUWRIILUVWLQVWDQFHDVIDUDVWKHIRXUFKDUJHVRIVXEYHUVLRQXQGHU5$DUHFRQFHUQHG2Q2FWREHU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
3UHVLGHQWLDO'HFUHH1RDPHQGLQJ3'1RSUHVFULELQJWKHUXOHVRISURFHGXUHIRUPLOLWDU\WULEXQDOV
XQGHU PDUWLDO ODZ ZDV LVVXHG SURYLGLQJ IRU WKH SHUSHWXDWLRQ RI WHVWLPRQ\ LQ FDVHV SHQGLQJ EHIRUH PLOLWDU\
WULEXQDOV
1R DFWLRQ ZDV WDNHQ E\ WKH &RXUW RQ WKLV VXSSOHPHQWDO SHWLWLRQ XQWLO -XO\ ZKHQ LW LVVXHG D UHVROXWLRQ
UHTXLULQJDQDQVZHUWKHUHWRZKLFKZDVILOHGE\WKH6ROLFLWRU*HQHUDORQ$XJXVW2Q2FWREHU
SHWLWLRQHU ILOHG D VHFRQG VXSSOHPHQWDO SHWLWLRQ FLWLQJ WKH 3UHVLGHQW
V VWDWHPHQWV WR WKH ZRUOG SUHVV RQ $SULO
DQG$XJXVWRQWKHDFWXDOUHPRYDORIPDUWLDOODZDQGWKDWWHFKQLFDOO\DQGOHJDOO\PDUWLDOODZZDV
OLIWHG ZLWK WKH UDWLILFDWLRQ RI WKH &RQVWLWXWLRQ ODVW \HDU 7KH 6ROLFLWRU *HQHUDO ILOHG KLV DQVZHU WKHUHWR RQ
'HFHPEHU
0HDQZKLOH RQ 0DUFK UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ LVVXHG H[ SDUWH LWV RUGHU JUDQWLQJ WKH
SURVHFXWLRQ
V PRWLRQ RI 0DUFK WR H[DPLQH DQG WDNH WKH GHSRVLWLRQ RI LWV ZLWQHVVHV RQ 0DUFK DQG
$SULO XQWLO WHUPLQDWHG IRU SHUSHWXDWLRQ SXUSRVHV RQ WKH EDUH DOOHJDWLRQ WKDW 7KH SHWLWLRQV RI WKH
DFFXVHG%HQLJQR6$TXLQR-USHQGLQJLQWKH6XSUHPH&RXUWZLOOWDNHWLPHWRUHVROYHUHVXOWLQJLQWKHGHOD\RIWKH
SHUSHWXDWLRQRIWKHWHVWLPRQLHVRIWKHSURVHFXWLRQZLWQHVVHV
3HWLWLRQHU
V FRXQVHO ILOHG RQ 0DUFK DQ XUJHQW PRWLRQ WR UHVWUDLQ UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ IURP
KROGLQJWKHSHUSHWXDWLRQSURFHHGLQJVRQWKHJURXQGVDPRQJRWKHUVWKDWWKHYHU\LVVXHRILWVMXULVGLFWLRQWRWDNH
FRJQL]DQFHRIFLYLORIIHQVHVDOOHJHGO\FRPPLWWHGEHIRUHPDUWLDOODZE\FLYLOLDQVOLNHSHWLWLRQHUZDVSHQGLQJZLWKWKLV
&RXUW DQG WKDW VXFK SURFHHGLQJV ZRXOG VKRUWFLUFXLW WKH 6SHFLDO 5HLQYHVWLJDWLQJ &RPPLWWHH FUHDWHG XQGHU
$GPLQLVWUDWLYH2UGHU1RHYHQEHIRUHVXFKFRPPLWWHHKDVFRPPHQFHGLWVGXW\WRGHWHUPLQHWKHH[LVWHQFHRI
UHDVRQDEOH JURXQG WR EHOLHYH WKDW WKH RIIHQVHV FKDUJHG ZHUH LQ IDFW FRPPLWWHG DQG WKH DFFXVHG LV SUREDEO\
JXLOW\WKHUHRIDQGZKHWKHURUQRWSHWLWLRQHUVKRXOGEHKHOGIRUWULDO
2Q $SULO WKLV &RXUW WKHQ FRPSRVHG RI WHQ PHPEHUV LVVXHG LWV UHVROXWLRQ WKDW LW ODFNHG WKH QHFHVVDU\
TXRUXPWRDFWRQSHWLWLRQHU
VVDLGXUJHQWPRWLRQ
3HWLWLRQHU
VFRXQVHOIXUWKHUPDQLIHVWHGWKDWSHWLWLRQHU
VUHTXHVWWRUHVSRQGHQWPLOLWDU\FRPPLVVLRQWRVXVSHQGWKH
SURFHHGLQJV IRU VHYHQ GD\V WR DOORZ KLV FRXQVHO WLPH DQG RSSRUWXQLW\ WR VHHN DSSURSULDWH UHOLHI IURP WKLV &RXUW
ZDVVXPPDULO\GHQLHGDQGSHWLWLRQHUWKHQGHOLYHUHGKLVVWDWHPHQWWKDWLIGHQLHGWKLVODVWEDVLFULJKWRIDKXPDQ
EHLQJ WR EH OHW DORQH KH ZRXOG KDYH QR DOWHUQDWLYH EXW WR JR RQ D KXQJHU VWULNH DV D IRUP RI VLOHQW SURWHVW
DJDLQVWDSURFHGXUHWKDWLVLQWHQGHGWRKXPLOLDWHDQGGHKXPDQL]HPH
7KHSHUSHWXDWLRQRIWHVWLPRQ\SURFHHGLQJVWKXVFRPPHQFHGRQ$SULODQGFRQWLQXHGRQVXFFHHGLQJGD\V
ZLWK WKH PLOLWDU\ SURVHFXWRU SUHVHQWLQJ DV WKH ILUVW VWDWH ZLWQHVV %HQMDPLQ 0 %LH -U DOLDV +XN &RPPDQGHU
0HORG\DQGZLWKSHWLWLRQHUEHLQJFRPSHOOHGWREHSUHVHQWWKURXJKRXWWKHSURFHHGLQJV7KLVZLWQHVV%LHWRJHWKHU
ZLWK DQRWKHU OLVWHG ZLWQHVV %HQMDPLQ 6DQJX\R DOLDV +XN &RPPDQGHU 3XVD ZHUH RULJLQDOO\ FRDFFXVHG ZLWK
SHWLWLRQHULQIRXUVXEYHUVLRQFKDUJHVEXWWKHFKDUJHVDJDLQVWWKHPZHUHZLWKGUDZQXQGHUDQROOHSURVHTXLRUGHU
LVVXHGE\WKH6HFUHWDU\RI1DWLRQDO'HIHQVHGDWHG0DUFK
2Q$SULOWKH&RXUWRUGHUHGWKHLVVXDQFHRIDWHPSRUDU\UHVWUDLQLQJRUGHUHQMRLQLQJUHVSRQGHQWPLOLWDU\
FRPPLVVLRQ IURP IXUWKHU SURFHHGLQJ ZLWK WKH SHUSHWXDWLRQ SURFHHGLQJV XQWLO WKH PDWWHU LV KHDUG DQG IXUWKHU
RUGHUVDQGVHWSHWLWLRQHU
VXUJHQWPRWLRQDQGUHODWHGLQFLGHQWVIRUKHDULQJRQ$SULO,WZDVDWWKLVKHDULQJ
WKDW SHWLWLRQHU
V FRXQVHO SUHVHQWHG WKH VLPSOH PRWLRQ WR ZLWKGUDZ WKH SHWLWLRQ DQG DOO RWKHU SHQGLQJ PRWLRQV LQ
FRPSOLDQFHZLWKWKHSHWLWLRQHU
VH[SUHVVZLVK,QFRPSOLDQFHZLWKWKH&RXUW
VLQVWUXFWLRQDWWKHKHDULQJWRLQTXLUH
LQWR SHWLWLRQHU
V UHDVRQV IRU KLV ZLWKGUDZDO PRWLRQ KLV FRXQVHO RQ WKH QH[W GD\ $SULO ILOHG WKHLU
PDQLIHVWDWLRQ VXEPLWWLQJ WKHUHZLWK SHWLWLRQHU
V SDJH OHWWHU RI $SULO DGGUHVVHG WR KLV ZLIH PRWKHU
UHODWLYHVDQGIULHQGVVWDWLQJKLVUHDVRQVWKHUHIRUDQGIRUFRQWLQXLQJWKHKXQJHUVWULNHKHEHJDQWHQGD\VDJR
LQWHUDOLDWKDWKHIHOWWKDWWKHFDVHKHKDGILOHGVLQFHLQWKH6XSUHPH&RXUWKDGEHFRPHPHDQLQJOHVV
WKDWKHKDVGHFLGHGWRSODFHKLVIDWHDQGKLVOLIHVTXDUHO\LQWKHKDQGVRI0U0DUFRVWKDW7KHPHDQLQJ
DQG WKUXVW RI KLV DEVHQFH RU SUHVHQFH LQ WKH SURFHHGLQJV EHIRUH WKH PLOLWDU\ WULEXQDO DQG KH KDV VROHPQO\
YRZHGWRFRQWLQXHKLVKXQJHUVWULNHDVDSURWHVWDJDLQVWWKHWULDORIFLYLOLDQVEHIRUHPLOLWDU\WULEXQDOVWKH
ODFN RI MXGLFLDO LQGHSHQGHQFH IRU DV ORQJ DV RXU MXGJHV UHPDLQ FDVXDOV
WKH DEVHQFH RI D JHQXLQH IUHH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
SUHVVDQGWKHIXUWKHUFRQWLQXDQFHRIPDUWLDOODZDQGLWVHYLOVDQGUHSUHVVLRQV
,,, 7KH WUDQVFHQGHQWDO FKDUDFWHU RI WKH FRQVWLWXWLRQDO LVVXHV UDLVHG GHDOLQJ DV WKH\ GR ZLWK WKH LQGLYLGXDO
V
IXQGDPHQWDOOLEHUWLHVDVJXDUDQWHHGE\WKH%LOORI5LJKWVHYHQLQDVWDWHRIPDUWLDOODZZKLFKFRQFHGHGO\LVQRWD
PLOLWDU\ WDNHRYHU RI FLYLO JRYHUQPHQW IXQFWLRQV DQG UHFRJQL]HG XQGHU WKH &RQVWLWXWLRQ WR ZKLFK DOO KDYH SOHGJHG OR\DOW\ DQG
ZKHUHLQZHDUHQRZFDOOHGXSRQWRGLVFKDUJHWKHMXGLFLDU\
VJUHDWEXUGHQRIGHILQLQJLWVFRQVWLWXWLRQDOERXQGDULHVFRPSHOVP\YRWHRQWKHPHULWVZKLFK,
FDVWIRUWKHJUDQWLQJRIWKHZULWRISURKLELWLRQSUD\HGIRUDJDLQVWUHVSRQGHQWPLOLWDU\FRPPLVVLRQIRUWKHUHDVRQVDQGFRQVLGHUDWLRQVZKLFKDUHKHUHLQEHORZ
UHVSHFWIXOO\VXEPLWWHG
&LYLOLDQVOLNHSHWLWLRQHUSODFHGRQWULDOIRUFLYLORIIHQVHVXQGHUJHQHUDOODZDUHHQWLWOHGWRWULDOE\MXGLFLDOSURFHVV
QRWE\H[HFXWLYHRUPLOLWDU\SURFHVV-XGLFLDOSRZHULVYHVWHGE\WKH&RQVWLWXWLRQH[FOXVLYHO\LQWKH6XSUHPH&RXUW
DQG LQ VXFK LQIHULRU FRXUWV DV DUH GXO\ HVWDEOLVKHG E\ ODZ -XGLFLDO SRZHU H[LVWV RQO\ LQ WKH FRXUWV ZKLFK KDYH
H[FOXVLYHSRZHUWRKHDUDQGGHWHUPLQHWKRVHPDWWHUVZKLFKDIIHFWWKHOLIHRUOLEHUW\RUSURSHUW\RIDFLWL]HQ
0LOLWDU\FRPPLVVLRQRUWULEXQDOVDUHDGPLWWHGO\QRWFRXUWVDQGGRQRWIRUPSDUWRIWKHMXGLFLDOV\VWHP$VIXUWKHU
DGPLWWHGE\WKH6ROLFLWRU*HQHUDOLQKLVDQVZHUPLOLWDU\FRPPLVVLRQVDUHDXWKRUL]HGWRH[HUFLVHMXULVGLFWLRQRYHUWZR
FODVVHV RI RIIHQVHV ZKHWKHU FRPPLWWHG E\ FLYLOLDQV RU E\ PLOLWDU\ SHUVRQQHO HLWKHU D LQ WKH HQHP\
V FRXQWU\ GXULQJ LWV
RFFXSDWLRQE\DQDUP\DQGZKLOHLWUHPDLQVXQGHUPLOLWDU\JRYHUQPHQWRUELQWKHORFDOLW\QRWZLWKLQWKHHQHP\
VFRXQWU\
LQZKLFKPDUWLDOODZKDVEHHQHVWDEOLVKHGE\FRPSHWHQWDXWKRULW\7KHFODVVHVRIRIIHQVHVDUHDYLRODWLRQRIWKHODZV DQG
FXVWRPV RI ZDU DQG E FLYLO FULPHV ZKLFK EHFDXVH WKH FLYLO FRXUWV DUH FORVHG RU WKHLU IXQFWLRQV VXVSHQGHG RU OLPLWHG
FDQQRWEHWDNHQFRJQL]DQFHRIE\WKHRUGLQDU\WULEXQDOV
6LQFHZHDUHQRWHQHP\RFFXSLHGWHUULWRU\QRUDUHZHXQGHUDPLOLWDU\JRYHUQPHQWDQGHYHQRQWKHSUHPLVHWKDW
PDUWLDO ODZ FRQWLQXHV LQ IRUFH WKH PLOLWDU\ WULEXQDOV FDQQRW WU\ DQG H[HUFLVH MXULVGLFWLRQ RYHU FLYLOLDQV IRU FLYLO
RIIHQVHVFRPPLWWHGE\WKHPZKLFKDUHSURSHUO\FRJQL]DEOHE\WKHFLYLOFRXUWVWKDWKDYHUHPDLQHGRSHQDQGKDYH
EHHQUHJXODUO\IXQFWLRQLQJ,QWKHOHDGLQJFDVHRI'XQFDQYV.DKDQDPRNXWKH866XSUHPH&RXUWKHOGLQVHWWLQJ
DVLGHWKHSULVRQVHQWHQFHVLPSRVHGRQWZRFLYLOLDQVE\PLOLWDU\WULEXQDOVWKDWWKHSODFLQJRI+DZDLLXQGHUPDUWLDOODZDIWHU
WKH-DSDQHVH3HDUO+DUERUDWWDFNRQ'HFHPEHUXQGHUWKH+DZDLLDQ2UJDQLF$FWGLGQRWLQFOXGHWKHSRZHURQWKH
SDUW RI WKH PLOLWDU\ JRYHUQRU WR VXSSODQW FLYLOLDQ ODZV E\ PLOLWDU\ RUGHUV DQG WR VXSSODQW FLYLO FRXUWV E\ PLOLWDU\ WULEXQDOV
ZKHUHFRQGLWLRQVZHUHQRWVXFKDVWRSUHYHQWWKHHQIRUFHPHQWRIWKHODZVE\WKHFRXUWV
7KHODWH-XVWLFH)UDQN0XUSK\LQKLVFRQFXUULQJRSLQLRQWKHUHLQUHSXGLDWHGWKHJRYHUQPHQW
VDSSHDOWRDEDQGRQ
WKH RSHQ FRXUWV UXOH RQ WKH DOOHJHG JURXQG RI LWV XQVXLWDELOLW\ WR PRGHUQ ZDUIDUH FRQGLWLRQV ZKHUH DOO WKH
WHUULWRULHVRIDZDUULQJQDWLRQPD\EHLQ&RPEDW]RQHVRULPPLQHQWO\WKUHDWHQHGZLWKORQJUDQJHDWWDFNHYHQZKLOH
FLYLO FRXUWV DUH RSHUDWLQJ DV VHHNLQJ WR MXVWLI\ PLOLWDU\ XVXUSDWLRQ RI FLYLOLDQ DXWKRULW\ WR SXQLVK FULPH ZLWKRXW
UHJDUGWRWKHSRWHQF\RIWKH%LOORI5LJKWVDQGREVHUYLQJWKDW&RQVWLWXWLRQDOULJKWVDUHURRWHGGHHSHUWKDQWKH
ZLVKHVDQGGHVLUHVRIWKHPLOLWDU\
$QGLQ7RWKYV4XDUOHVWKH866XSUHPH&RXUWIXUWKHUVWUHVVHGWKDWWKHDVVHUWLRQRIPLOLWDU\DXWKRULW\RYHUFLYLOLDQV
FDQQRWUHVWRQWKH3UHVLGHQW
VSRZHUDV&RPPDQGHULQ&KLHIRURQDQ\WKHRU\RIPDUWLDOODZ
7KXVWKH3UHVLGHQWKDVILOOHGXSYDFDQFLHVLQWKHMXGLFLDU\DQGDOOD\HGHIIHFWLYHO\WKHIHDUVH[SUHVVHGGXULQJWKH
LQLWLDOGD\VRIPDUWLDOODZWKDWWKHUXOHRIWKHPLOLWDU\ZRXOGSUHYDLOEHFDXVHRWKHUFRXQWULHVXQGHUPDUWLDOODZKDG
GLVSHQVHGZLWKFLYLOLDQFRXUWVRIMXVWLFHDQGVWUHVVHGWKHVXSUHPDF\RIWKH&RQVWLWXWLRQDWWKHWKDQQLYHUVDU\
ULWHVRIWKH$)3ZKHQKHWROGWKH$UPHG)RUFHVWKDW7KHPLOLWDU\LVWKHIRUFHWKDWHQIRUFHVWKHODZEXWWKHFLYLO
JRYHUQPHQW LV WKH UXOLQJ SRZHU LQ RXU FRXQWU\ DQG WKDW ZH KDYH VWXFN WR WKH &RQVWLWXWLRQ :H KDYH SOHGJHG
OR\DOW\WRWKDW&RQVWLWXWLRQ
(YHQ DVVXPLQJ WKDW PLOLWDU\ WULEXQDOV FRXOG YDOLGO\ H[HUFLVH MXULVGLFWLRQ RYHU RIIHQVHV DOOHJHGO\ FRPPLWWHG E\
FLYLOLDQV QRW ZLWKVWDQGLQJ WKH DEVHQFH RI D VWDWH RI ZDU RU EHOOLJHUHQF\ DQG WKH XQLPSDLUHG IXQFWLRQLQJ RI WKH
UHJXODUFRXUWVRIMXVWLFHVXFKMXULVGLFWLRQFRXOGQRWHQFRPSDVVFLYLORIIHQVHVGHILQHGE\WKHJHQHUDOFLYLOODZDV
SHU WKH 5HYLVHG 3HQDO &RGH DQG 5HSXEOLF $FW NQRZQ DV WKH $QWL6XEYHUVLRQ $FW DOOHJHG WR KDYH EHHQ
FRPPLWWHGE\FLYLOLDQVOLNHSHWLWLRQHULQDQGORQJEHIRUHWKHGHFODUDWLRQRIPDUWLDO
ODZDVRI6HSWHPEHU
7KH 86 6XSUHPH &RXUW DSWO\ SRLQWHG RXW LQ 7RWK YV 4XDUOHV VXSUD LQ UXOLQJ WKDW GLVFKDUJHG DUP\ YHWHUDQV
HVWLPDWHGWRQXPEHUPRUHWKDQPLOOLRQFRXOGQRWEHUHQGHUHGKHOSOHVVEHIRUHVRPHODWWHUGD\UHYLYDORI
ROGPLOLWDU\FKDUJHVDQGVXEMHFWHGWRPLOLWDU\WULDOVIRURIIHQVHVFRPPLWWHGZKLOHWKH\ZHUHLQWKHPLOLWDU\VHUYLFHSULRU
WR WKHLU GLVFKDUJH WKDW WKH SUHVLGLQJ RIILFHU DW D FRXUW PDUWLDO LV QRW D MXGJH ZKRVH REMHFWLYLW\ DQG LQGHSHQGHQFH DUH
SURWHFWHGE\WHQXUHDQGXQGLPLQLVKHGVDODU\DQGQXUWXUHGE\WKHMXGLFLDOWUDGLWLRQEXWLVDPLOLWDU\ODZRIILFHU6XEVWDQWLDOO\
GLIIHUHQW UXOHV RI HYLGHQFH DQG SURFHGXUH DSSO\ LQ PLOLWDU\ WULDOV $SDUW IURP WKHVH GLIIHUHQFHV WKH VXJJHVWLRQ RI WKH
SRVVLELOLW\ RI LQIOXHQFH RQ WKH DFWLRQV RI WKH FRXUWPDUWLDO E\ WKH RIILFHU ZKR FRQYHQHV LW VHOHFWV LWV PHPEHUV DQG WKH
FRXQVHORQERWKVLGHVDQGZKRXVXDOO\KDVGLUHFWFRPPDQGDXWKRULW\RYHULWVPHPEHUVLVDSHUYDVLYHRQHLQPLOLWDU\ODZ
GHVSLWHVWUHQXRXVHIIRUWVWRHOLPLQDWHWKHGDQJHU
7KHODWH-XVWLFH%ODFNVSHDNLQJIRUWKDW&RXUWDGGHGWKDW$&RXUW0DUWLDOLVQRW\HWDQLQGHSHQGHQWLQVWUXPHQW
RI MXVWLFH EXW UHPDLQV WR D VLJQLILFDQW GHJUHH D VSHFLDOL]HG SDUW RI WKH RYHUDOO PHFKDQLVP E\ ZKLFK PLOLWDU\
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
GLVFLSOLQHLVSUHVHUYHGDQGWKDWH[VHUYLFHPHQVKRXOGEHJLYHQWKHEHQHILWVRIDFLYLOLDQFRXUWWULDOZKHQWKH\DUH
DFWXDOO\FLYLOLDQV)UHHFRXQWULHVRIWKHZRUOGKDYHWULHGWRUHVWULFWPLOLWDU\WULEXQDOVWRWKHQDUURZHVWMXULVGLFWLRQ
GHHPHGDEVROXWHO\HVVHQWLDOWRPDLQWDLQLQJGLVFLSOLQHDPRQJWURRSVLQDFWLYHVHUYLFH
0RUH VR WKHQ VKRXOG PLOLWDU\ WULDOV EH QRW VDQFWLRQHG IRU FLYLO RIIHQVHV DOOHJHGO\ FRPPLWWHG E\ FLYLOLDQV OLNH
SHWLWLRQHUORQJEHIRUHWKHGHFODUDWLRQRIPDUWLDOODZDQGIRUZKLFKWKH\FRXOGKDYHEHHQFKDUJHGWKHQDVZHOODV
QRZEHIRUHWKHFLYLOFRXUWVZKLFKKDYHDOZD\VUHPDLQHGRSHQDQGWKHLUSURFHVVDQGIXQFWLRQVXQREVWUXFWHG
7KH6ROLFLWRU*HQHUDO
VFRQWHQWLRQWKDWPLOLWDU\WULEXQDOVKDYHFRPSHWHQFHWRWU\FLYLOFULPHVUHODWLQJWRWKHFDXVHV
MXVWLI\LQJWKHSURFODPDWLRQRIPDUWLDOODZLQDYHLOHGUHIHUHQFHWRWKHVXEYHUVLRQFKDUJHVDJDLQVWSHWLWLRQHUGRHVQRW
PHHW WKH HVVHQWLDO UHTXLUHPHQW RI WKH H[LVWHQFH RI RYHUSRZHULQJ QHFHVVLW\ RU HPHUJHQF\ WR MXVWLI\ WKH WULDO RI SHWLWLRQHU D
FLYLOLDQIRUWKHVDLGFLYLORIIHQVHVE\UHVSRQGHQWPLOLWDU\FRPPLVVLRQ
$VVWDWHGE\WKHSUHVHQW-XGJH$GYRFDWH*HQHUDOLQKLVWUHDWLVHRQPDUWLDOODZ1HFHVVLW\OLPLWVERWKWKHH[WHQWRI
SRZHUV WKDW PD\ EH H[HUFLVHG XQGHU PDUWLDO ODZ DQG WKH GXUDWLRQ RI LWV H[HUFLVH 1R OLIH PD\ EH WDNHQ QR
LQGLYLGXDODUUHVWHGRUFRQILQHGRUKHOGIRUWULDOQRSURSHUW\GHVWUR\HGRUDSSURSULDWHGQRULJKWVRIWKHLQGLYLGXDO
PD\EHFXUWDLOHGRUVXVSHQGHGH[FHSWZKHUHQHFHVVLW\MXVWLILHVVXFKLQWHUIHUHQFHZLWKWKHSHUVRQRUWKHSURSHUW\
$Q\ DFWLRQ RQ WKH SDUW RI WKH PLOLWDU\ WKDW LV QRW IRXQGHG RQ WKH UHDVRQDEOH GHPDQGV RI QHFHVVLW\ LV D JURVV
XVXUSDWLRQRISRZHULOOHJDOXQMXVWLILHGDQGLPSURSHU7KHEURDGPDQWOHRIPDUWLDOODZFDQQRWFRYHUDFWVLOOHJDO
EHFDXVHQRWMXVWLILHGE\QHFHVVLW\QRUSURSHUXQGHUWKHFLUFXPVWDQFHV7KLVSULQFLSOHLVEDVHGQRWRQO\XSRQWKH
IXQGDPHQWDOSUHFHSWVRIFRQVWLWXWLRQDOLVPEXWUHVWVRQVRXQGUHDVRQ²WKDWZKHUHWKHDFWLRQRIWKHPDWWHULVQRW
QHFHVVDU\IRUWKHSXEOLFHQGVRIWKHVWDWHWKH\DUHLOOHJDODQGWKHPHUHIDFWWKDWPDUWLDOODZH[LVWVZLOOQRWEHD
JURXQGIRUWKHLUMXVWLILFDWLRQ
3HWLWLRQHUPD\QRWEHGHSULYHGRIKLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVE\PHDQVRIWKHSURFHHGLQJVLQVWLWXWHG
DJDLQVWKLPEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQYL]
D7KHVXPPDU\H[SDUWHLQYHVWLJDWLRQE\WKHFKLHISURVHFXWLRQVWDIIRIWKH-$*2RIWKHFKDUJHVILOHGDJDLQVWKLP
GHSULYHG KLP RI KLV ULJKW WR EH LQIRUPHG RI WKH FKDUJHV DJDLQVW KLP DQG RI KLV ULJKW WR FRXQVHO DV H[SUHVVO\
UHFRJQL]HGQRZE\VHFWLRQRIWKH%LOORI5LJKWVRIWKH&RQVWLWXWLRQ
E KH ZRXOG EH GHSULYHG RI KLV YHVWHG VWDWXWRU\ ULJKW WR D SUHOLPLQDU\ LQYHVWLJDWLRQ RI WKH VXEYHUVLRQ FKDUJHV
DJDLQVW KLP EHIRUH WKH SURSHU FRXUW RI ILUVW LQVWDQFH DV UHTXLUHG XQGHU VHFWLRQ RI WKH $QWL6XEYHUVLRQ $FW
5HSXEOLF$FW DQG RI WKH RWKHU FKDUJHV DJDLQVW KLP EHIRUH WKH SURSHU FLYLOLDQ RIILFLDOV DQG WR FRQIURQW DQG FURVV
H[DPLQH WKH ZLWQHVVHV DJDLQVW KLP XQGHU 5HSXEOLF $FW DW WKH OHDVW WKH VSHFLDO UHLQYHVWLJDWLQJ FRPPLWWHH FUHDWHG
XQGHU$GPLQLVWUDWLYH2UGHU1RVKRXOGEHDFWLYDWHGLQRUGHUWRGLVFKDUJHLWVDVVLJQHGWDVNRIFRQGXFWLQJWKHSUHOLPLQDU\
LQYHVWLJDWLRQDQGGHWHUPLQLQJZKHWKHURUQRWWKHSHWLWLRQHUVKRXOGEHKHOGIRUWULDOFKHZRXOGEHGHSULYHGRIWKHULJKWWREH
WULHG E\ MXGLFLDO SURFHVV E\ WKH UHJXODU LQGHSHQGHQW FRXUWV RI MXVWLFH ZLWK DOO WKH VSHFLILF FRQVWLWXWLRQDO VWDWXWRU\ DQG
SURFHGXUDOVDIHJXDUGVHPERGLHGLQWKHMXGLFLDOSURFHVVDQGSUHVLGHGRYHUQRWE\PLOLWDU\RIILFHUVWUDLQHGDQGRULHQWHGDORQJ
VWULFWUXOHVRIGLVFLSOLQHDQGULJLGFRXQWHQDQFHDOWKRXJKWKH\DUHKXPDQEHLQJVZLWKKXPDQKHDUWVZKRDUHQRWODZ\HUV
H[FHSW WKH ODZ PHPEHU EXW E\ MXGJHV RI DW OHDVW WHQ \HDUV H[SHULHQFH LQ WKH SUDFWLFH RI ODZ ZKRVH REMHFWLYLW\ DQG
LQGHSHQGHQFHDUHSURWHFWHGE\WHQXUHJXDUDQWHHGE\WKH&RQVWLWXWLRQDQGDUHQXUWXUHGE\WKHMXGLFLDOWUDGLWLRQDQG
G+HZRXOGEHGHSULYHGRIWKHULJKWWRDSSHDOWRWKHUHJXODUDSSHOODWHFRXUWVDQGWRMXGLFLDOUHYLHZE\WKLV&RXUW
LQWKHHYHQWRIFRQYLFWLRQDQGLPSRVLWLRQRIDVHQWHQFHRIGHDWKRUOLIHLPSULVRQPHQWZKLFKWKHFKDUJHVFDUU\
$UWLFOH;VHFWLRQRIWKH&RQVWLWXWLRQH[SUHVVO\SURYLGHVWKDWWKH1DWLRQDO$VVHPEO\ZKLFKLVYHVWHGZLWKWKHSRZHU
WRGHILQHSUHVFULEHDQGDOORFDWHWKHMXULVGLFWLRQRIWKHYDULRXVFRXUWVPD\QRWGHSULYHWKLV&RXUWRILWVMXULVGLFWLRQRYHUVXFK
VHULRXVFDVHVDPRQJRWKHUV7KLV&RXUWLQWKHH[HUFLVHRIVXFKMXULVGLFWLRQKDVFRQVLVWHQWO\H[DFWHGWKHFDUGLQDOUXOHWKDW
WKHSURVHFXWLRQPXVWSURYHWKHJXLOWRIWKHDFFXVHGEH\RQGDUHDVRQDEOHGRXEWDQGUHTXLUHGDTXDOLILHGPDMRULW\RIWHQ
YRWHV IRU DIILUPDQFH RI WKH GHDWK SHQDOW\ ZKLFK UHTXLUHPHQW LV RI FRXUVH QRW IRXQG LQ WKH &RPPDQGHULQ&KLHI
V UHYLHZ RI
WKHGHFLVLRQVRIPLOLWDU\WULEXQDOV
)RU WKH PLOLWDU\ WULEXQDO WR WU\ SHWLWLRQHU XQGHU WKHVH FLUFXPVWDQFHV LV WR GHQ\ SHWLWLRQHU GXH SURFHVV RI ODZ DV
JXDUDQWHHGXQGHUVHFWLRQRIWKH%LOORI5LJKWVDVZHOODVXQGHUVHFWLRQZKLFKIXUWKHUVSHFLILFDOO\RUGDLQVWKDW
1R SHUVRQ VKDOO EH KHOG WR DQVZHU IRU D FULPLQDO RIIHQVH ZLWKRXW GXH SURFHVV RI ODZ 7KH HOLPLQDWLRQ E\
VXEVHTXHQWGHFUHHVRIKLVULJKWWRSUHOLPLQDU\LQYHVWLJDWLRQZLWKULJKWRIFRXQVHODQGRIFURVVH[DPLQDWLRQRIWKH
VXEYHUVLRQFKDUJHVEHIRUHWKHSURSHUFRXUWRIILUVWLQVWDQFHXQGHU5HSXEOLF$FWDQGRIRWKHUULJKWVYHVWHGLQ
KLPDWWKHWLPHRIWKHDOOHJHGFRPPLVVLRQRIWKHRIIHQVHZKLFKZHUHDOOPHDQWWRSURYLGHWKHDFFXVHGZLWKDPSOH
ODZIXOSURWHFWLRQLQWKHHQIRUFHPHQWRIVDLG$FWVXFKDVWKHEDVLFULJKWWREHWULHGE\MXGLFLDOSURFHVVDQGWKHULJKW
RIMXGLFLDOUHYLHZE\WKLV&RXUWZRXOGIXUWKHURIIHQGWKH&RQVWLWXWLRQDOLQMXQFWLRQDJDLQVWWKHHQDFWPHQWRIH[SRVW
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
IDFWRODZVZKLFKZRXOGUHQGHULWHDVLHUWRFRQYLFWDQDFFXVHGWKDQEHIRUHWKHHQDFWPHQWRIVXFKODZ
:LWKDOOVXFKFRQVWLWXWLRQDOVDIHJXDUGVWKH&RXUWWKURXJK0U-XVWLFH&DVWURLQLWVGHFLVLRQLQ3HRSOHYV)HUUHU
UHQGHUHG DIWHU WKH SURFODPDWLRQ RI PDUWLDO ODZ QHYHUWKHOHVV HQMRLQHG WKDW HYHQ DV ZH XSKROG WKH YDOLGLW\ RI WKH $QWL
VXEYHUVLRQ $FW ZH FDQQRW RYHUHPSKDVL]H WKH QHHG IRU SUXGHQFH DQG FLUFXPVSHFWLRQ LQ LWV HQIRUFHPHQW RSHUDWLQJ DV LW
GRHV LQ WKH VHQVLWLYH DUHD RI IUHHGRP RI H[SUHVVLRQ DQG EHOLHI DQG VHW VSHFLILF EDVLF JXLGHOLQHV WR EH REVHUYHG LQ DQ\
SURVHFXWLRQ XQGHU WKH $FW +HQFH WKH SURKLELWLRQ DJDLQVW H[ SRVW IDFWR ODZV ODZV KDV EHHQ DSWO\ GHVFULEHG DV D ZDUQLQJ
DJDLQVW OHJLVODWLYH RSSUHVVLRQ RU W\UDQQ\ DQG D SURYLVLRQ WKDW ZRXOG PLQLPL]H LI QRW HUDGLFDWH WKH SRVVLELOLW\ RI WKH
OHJLVODWXUHLWVHOIGLVFUHGLWLQJWKHVWDWHZLWKLWVSDOSDEOHGLVUHJDUGRIDEDVLFREMHFWLYHWKDWMXVWLFHEHGLVSHQVHGZLWKDQHYHQ
KDQGWKURXJKWKHGXO\HVWDEOLVKHGRUJDQVZLWKDVSHFLDOILWQHVVIRUWKHWDVN
3HWLWLRQHU
V SOHD WKDW KLV WULDO E\ D PLOLWDU\ WULEXQDO FUHDWHG E\ WKH 3UHVLGHQW DQG FRPSRVHG RI WKH 3UHVLGHQW
V
RZQPLOLWDU\VXERUGLQDWHVZLWKRXWWHQXUHDQGRIQRQODZ\HUVH[FHSWWKHODZPHPEHUDQGRIZKRVHGHFLVLRQWKH
3UHVLGHQW LV WKH ILQDO UHYLHZLQJ DXWKRULW\ DV &RPPDQGHULQ&KLHI RI WKH $UPHG )RUFHV GHSULYHV KLP RI D EDVLF
FRQVWLWXWLRQDOULJKWWREHKHDUGE\DIDLUDQGLPSDUWLDOWULEXQDOFRQVLGHULQJWKDWWKH3UHVLGHQWKDVSXEOLFO\GHFODUHG
WKH HYLGHQFH DJDLQVW SHWLWLRQHU QRW RQO\ VWURQJ EXW RYHUZKHOPLQJ DQG LQ SHWLWLRQHU
V YLHZ WKHUHE\ SUHMXGJHG
DQGSUHGHWHUPLQHGKLVJXLOWPHULWVFRQVLGHUDWLRQ
,QSHWLWLRQHU
VYLHZKHKDVEHHQSXEOLFO\LQGLFWHGDQGKLVJXLOWSUHMXGJHGE\WKH3UHVLGHQWZKHQLQDQDWLRQZLGH
SUHVVFRQIHUHQFHRQ$XJXVWIROORZLQJWKH3OD]D0LUDQGDERPELQJWKUHHGD\VHDUOLHURIWKH/LEHUDO3DUW\
SURFODPDWLRQ PHHWLQJ WKH 3UHVLGHQW FKDUJHG KLP DQG GLVFORVHG HYLGHQFH LQ WKH SRVVHVVLRQ RI WKH JRYHUQPHQW
OLQNLQJSHWLWLRQHUWRVRPHLOOHJDODQGVXEYHUVLYHDFWLYLWLHVLQZKLFKDUHYLUWXDOO\WKHVDPHFKDUJHVQRZ
ILOHG DJDLQVW KLP EHIRUH UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ DQG GHFODUHG WKH HYLGHQFH DJDLQVW SHWLWLRQHU QRW RQO\
VWURQJEXWRYHUZKHOPLQJ7KH3UHVLGHQWH[SODLQHGRQWKHVDPHRFFDVLRQWKDWLQQRWDFWLQJDJDLQVWSHWLWLRQHU
KHKDGHUUHGRQWKHVLGHRIJHQHURVLW\DVZHOODVRIOLEHUDOLW\KRSLQJWKDWJRRGVHQVHPD\VRPHGD\FDWFKXSZLWK
KLP VLQFH SHWLWLRQHU ZDV WKH RQO\ RSSRVLWLRQ VHQDWRU OHIW LQ WKH 6HQDWH DIWHU WKH ERPELQJ EXW WKDW KH GLG QRW
NQRZZKDWZLOOKDSSHQODWHURQEHFDXVHRIFRXUVHWKHPLOLWDU\LQVLVWWKDWZHPXVWQRWPDNHDQ\H[FHSWLRQVWR
WKHJHQHUDOUXOH
:KLOHRQHPD\DJUHHWKDWWKH3UHVLGHQWDV&RPPDQGHULQ&KLHIZRXOGGLVFKDUJHKLVGXW\DVWKHILQDOUHYLHZLQJ
DXWKRULW\ZLWKIHDOW\WRKLVRDWKWRGRMXVWLFHWRHYHU\PDQSDUWLFXODUO\EHFDXVHRIKLVUHQRZQHGOHJDOVDJDFLW\
DQG H[SHULHQFH VWLOO XQGHU WKH HQYLURQPHQWDO IDFWV ZKHUH WKH PLOLWDU\ DSSHDUV WR KDYH EHHQ LPSUHVVHG E\ WKH
3UHVLGHQW
V DSSUDLVDO RI WKH HYLGHQFH DQG ZLWKRXW FDVWLQJ DQ\ UHIOHFWLRQ RQ WKH LQWHJULW\ RI WKH PHPEHUV RI
UHVSRQGHQWPLOLWDU\FRPPLVVLRQZKLFKSHWLWLRQHUKLPVHOIDFNQRZOHGJHVWKHGRFWULQHFRQVLVWHQWO\KHOGE\WKH&RXUW
WKDW HOHPHQWDU\ GXH SURFHVV UHTXLUHV D KHDULQJ EHIRUH DQ LPSDUWLDO DQG GLVLQWHUHVWHG WULEXQDO DULG WKDW $OO
VXLWRUVDUHHQWLWOHGWRQRWKLQJVKRUWRIWKHFROGQHXWUDOLW\RIDQLQGHSHQGHQWZKROO\IUHHGLVLQWHUHVWHGDQGLPSDUWLDO
WULEXQDOFDOOVIRUDSSOLFDWLRQLQWKHSUHVHQWFDVH
7KLV &RXUW LQ DOO LWV MXULVSUXGHQFH RQ GLVTXDOLILFDWLRQ DQG LQKLELWLRQ RI MXGJHV KDV LQYDULDEO\ FLWHG DV D VDOXWDU\
QRUPWKDWKHWKHMXGJHUHIOHFWRQWKHSUREDELOLW\WKDWDORVLQJSDUW\PLJKWQXUWXUHDWWKHEDFNRIKLVPLQGWKH
WKRXJKWWKDWWKHMXGJHKDGXQPHULWRULRXVO\WLOWHGWKHVFDOHVRIMXVWLFHDJDLQVWKLPDQGDSSOLHGWKH\DUGVWLFNWKDW
ZKHQ WKH EDVLV KDV EHHQ ODLG IRU WKH SRVVLELOLW\ RI D WULDOEHLQJ WDLQWHG E\ SDUWLDOLW\ WKLV &RXUW FDQ VWHS LQ WR
DVVXUH UHVSHFW IRU WKH GHPDQGV RI GXH SURFHVV ZKLFK LW KDV H[WHQGHG SULPDULO\ IRU WKH SHDFH RI PLQG DQG
SURWHFWLRQRIWKHDFFXVHG
5HVSRQGHQWV
FLWLQJRI<DPDVKLWDYV6W\HUDVMXVWLI\LQJWKHSURVHFXWLRQDQGWULDORIFLYLOLDQVE\PLOLWDU\FRPPLVVLRQV
LVLQHUURUDVWKDWFDVHLQYROYHGWKHWULDODQGSXQLVKPHQWRIZDUFULPLQDOVZKLFKLVDQDVSHFWRIZDJLQJZDU1HLWKHULVWKH
FUHDWLRQRIWKH3HRSOH
V&RXUWDIWHUWKHODVWZDUWRWU\WKRVHFKDUJHGZLWKWUHDVRQLQSRLQWIRUVDLGFRXUWDVZHOODVVLPLODU
FRXUWVOLNHWKH&LUFXLW&ULPLQDO&RXUWVZKLFKZHUHFUHDWHGE\&RQJUHVVSXUVXDQWWRLWVDXWKRULW\XQGHUWKH&RQVWLWXWLRQDQG
YHVWHG ZLWK VSHFLDO MXULVGLFWLRQ RYHU FHUWDLQ FULPHV ZHUH FUHDWHG DV MXGLFLDO FRXUWV DQG SDUW RI WKH MXGLFLDO V\VWHP ZKRVH
GHFLVLRQVZHUHDQGDUHVXEMHFWWRUHYLHZE\WKHDSSHOODWHFRXUWVXQOLNHPLOLWDU\FRPPLVVLRQV
3UHVFLQGLQJIURPWKHLVVXHRIUHVSRQGHQWPLOLWDU\FRPPLVVLRQ
VODFNRIMXULVGLFWLRQRYHUWKHFKDUJHVDJDLQVWWKH
SHWLWLRQHUWKHH[DPLQDWLRQRIWKHSURVHFXWLRQZLWQHVVHVDQGWKHSHUSHWXDWLRQRIWKHLUWHVWLPRQ\VKRXOGSURSHUO\
EHKHOGEHIRUHWKH6SHFLDO5HLQYHVWLJDWLQJ&RPPLWWHHFUHDWHGXQGHU$GPLQLVWUDWLYH2UGHU1RIRUWKHVLPSOH
UHDVRQ WKDW DOO SURFHHGLQJV EHIRUH UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ ZHUH GHHPHG VXVSHQGHG E\ YLUWXH RI WKH
UHLQYHVWLJDWLRQ RUGHUHG E\ WKH 3UHVLGHQW WR GHWHUPLQH ZKHWKHU WKHUH UHDOO\ LV UHDVRQDEOH JURXQG WR KROG
SHWLWLRQHUIRUWULDODQGWKHSHUSHWXDWLRQRIWHVWLPRQ\JLYHQEHIRUHWKHVDLG&RPPLWWHHLVH[SUHVVO\SURYLGHGIRULQ
WKH$GPLQLVWUDWLYH2UGHU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
,WZDVSUHFLVHO\WRUHDVVXUHWKHSHWLWLRQHUWKDWKHFRQWLQXHVWRHQMR\KLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVDQG
WR LQVXUH XWPRVW IDLUQHVV LPSDUWLDOLW\ DQG REMHFWLYLW\ DQG WR GHWHUPLQH ZKHWKHU UHDOLW\ WKHUH LV UHDVRQDEOH
JURXQGWREHOLHYHWKDWWKHRIIHQVHVFKDUJHGZHUHLQIDFWFRPPLWWHGDQGWKHSHWLWLRQHULVSUREDEO\JXLOW\WKHUHRI
WKDWWKH3UHVLGHQWFUHDWHGXQGHU$GP2UGHU1RRQ$XJXVWDVSHFLDOILYHPHPEHUFRPPLWWHHWR
FRQGXFWWKHSUHOLPLQDU\LQYHVWLJDWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHU
,W PD\ EH VHHQ IURP WKH DERYHVWDWHG SUHPLVHV DQG REMHFWLYHV WKDW WKH DGPLQLVWUDWLYH RUGHU ZDV LVVXHG E\ WKH
3UHVLGHQWSXUVXDQWWRKLVRULHQWDWLRQWRZDUGVWKHSURWHFWLRQRIWKH%LOORI5LJKWVDQGWKHMXGLFLDOSURFHVV$VWKH
3UHVLGHQWKLPVHOIGHFODUHGLQWKHVDPHQDWLRQZLGHSUHVVFRQIHUHQFHRI$XJXVW Wr x
vK T Z k
,DPDODZ\HUP\WUDLQLQJLVRULHQWHGWRZDUGVWKHSURWHFWLRQRIWKH%LOORI5LJKWVEHFDXVHLI\RXZLOO
UHPHPEHU,KDYHUHSHDWHGO\VDLGWKDWLILWZHUHQRWIRUWKH%LOORI5LJKWV,ZRXOGQRWEHKHUHQRZ,ILW
ZHUHQRWIRUWKHMXGLFLDOSURFHVV,ZRXOGQRWEH3UHVLGHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHV
,Q SHWLWLRQHU
V XUJHQW PRWLRQ RI 0DUFK IRU D UHVWUDLQLQJ RUGHU DJDLQVW WKH KROGLQJ RI SHUSHWXDWLRQ RI
WHVWLPRQ\ SURFHHGLQJV EHIRUH UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ KH SUHFLVHO\ FRPSODLQHG WKDW VXFK SURFHHGLQJV
ZRXOG SUHHPSW DQG UHQGHU PRRW WKH SUHMXGLFLDO TXHVWLRQ UDLVHG E\ KLP LQ WKH FDVH DW EDU FKDOOHQJLQJ WKH
FRPPLVVLRQ
V MXULVGLFWLRQ WR WDNH FRJQL]DQFH RI WKH FKDUJHV DJDLQVW KLP DQG ZRXOG VKRUWFLUFXLW WKH
UHLQYHVWLJDWLRQ RUGHUHG E\ WKH 3UHVLGHQW XQGHU $GP 2UGHU 1R HYHQ EHIRUH WKH VDLG FRPPLWWHH KDV
SHUIRUPHGLWVGXW\WRGHWHUPLQHZKHWKHURUQRWSHWLWLRQHUVKRXOGEHKHOGIRUWULDODQGQRWZLWKVWDQGLQJWKDWWKHUH
LVQRLQGLFDWLRQFRPLQJIURPWKH3UHVLGHQWRIWKH3KLOLSSLQHVWKDWLWKDVRXWOLYHGLWVXVHIXOQHVV²IXQFWXVRILFLR²
RUWKDWLWLVQRWILWWRDGPLQLVWHUMXVWLFHWRWKHSHWLWLRQHU
:KLOHSHWLWLRQHULQVLVWHGRQKLVULJKWWRDSUHOLPLQDU\LQYHVWLJDWLRQRIWKHVXEYHUVLRQFKDUJHVE\WKHFRXUWRIILUVW
LQVWDQFHDVSUHVFULEHGE\5HSXEOLF$FWKHQHYHUWKHOHVVSURSRXQGHGLQKLV0DUFKPHPRUDQGXP
WKDW UHWLUHG -XVWLFH - % / 5H\HV
KDYLQJ GHFOLQHG WR DFW DV FKDLUPDQ RI WKH FRPPLWWHH DQG WR GHVLJQDWH D
UHSUHVHQWDWLYHRIWKH,QWHJUDWHG%DUGLGQRWPHDQWKDWWKHFRPPLWWHHFDQQRWEHPDGHWRIXQFWLRQVLQFHLQWKH
DEVHQFH RI MXGLFLDO ZULW RU SURFHVV WKHUH LV QRWKLQJ WR SUHYHQW WKH GHVLJQDWLRQ RI DQRWKHU UHWLUHG MXVWLFH RI WKH
6XSUHPH&RXUWDVFKDLUPDQDQGQRWKLQJWRSUHYHQWWKHLQFRPLQJSUHVLGHQWRIWKH,QWHJUDWHG%DUWRGHVLJQDWHD
UHSUHVHQWDWLYH WR WKH FRPPLWWHH $V WR SHWLWLRQHU
V KDYLQJ GHFOLQHG WR GHVLJQDWH KLV UHSUHVHQWDWLYH LW KDV DOUHDG\
EHHQ SRLQWHG RXW VXSUD WKDW WKH VDLG RUGHU H[SUHVVO\ SURYLGHV WKDW LQ VXFK HYHQW WKH &KLHI -XVWLFH VKDOO GHVLJQDWH
VRPHRQHLQKLVVWHDG
,WLVHYLGHQWWKHQWKDWXQGHUWKHVDLGRUGHUWKH&KLHI-XVWLFHZDVFDOOHGXSRQWRILOODWOHDVWWKHWZRYDFDQFLHVE\
PDNLQJWKHVXEVWLWXWHGHVLJQDWLRQVDVWKHUHLQSURYLGHGZKLFKZRXOGKDYHHQDEOHGWKHFRPPLWWHHWRGLVFKDUJHLWV
IXQFWLRQ ZLWK D FRPSRVLWLRQ RI IRXU PHPEHUV ZKLOH DZDLWLQJ WKH GHVLJQDWLRQ RI WKH ILIWK PHPEHU E\ WKH ,%3
SUHVLGHQW EXW WKDW KH UHIUDLQHG IURP GRLQJ VR DV WKH PDWWHU ZDV VXE MXGLFH EHFDXVH RI WKH SHQGHQF\ RI WKH
VXSSOHPHQWDO SHWLWLRQ DW EDU TXHVWLRQLQJ WKH YDOLGLW\ RI WKH RUGHU RQ WKH JURXQG WKDW LW GHSULYHG SHWLWLRQHU RI KLV
ULJKWWRLQYHVWLJDWLRQE\WKHFRXUWRIILUVWLQVWDQFHRQWKHSULQFLSDOFKDUJHVRIVXEYHUVLRQ
:LWKWKH&RXUW
VGLVPLVVDORIWKHSHWLWLRQVDQGSHWLWLRQHU
VZLWKGUDZDOWKHUHRIQRWKLQJVWDQGVLQWKHZD\QRZRI
DFWLYDWLQJ WKH VDLG 6SHFLDO 5HLQYHVWLJDWLQJ &RPPLWWHH DQG LWV GLVFKDUJLQJ LWV DVVLJQHG WDVN RI FRQGXFWLQJ WKH
SUHOLPLQDU\ LQYHVWLJDWLRQ DQG GHWHUPLQLQJ ZKHWKHU SHWLWLRQHU VKRXOG EH KHOG IRU WULDO LQ LPSOHPHQWDWLRQ RI WKH
RUGHU
VH[SUHVVREMHFWLYHVRIUHDVVXULQJSHWLWLRQHURIKLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVDQGLQVXULQJXWPRVW
IDLUQHVVLPSDUWLDOLW\DQGREMHFWLYLW\LQWKHSURVHFXWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHU
6XFK SUHOLPLQDU\ LQYHVWLJDWLRQ E\ WKH 6SHFLDO 5HLQYHVWLJDWLQJ &RPPLWWHH ZLWK LWV GLYHUVH PHPEHUVKLS DQG
HPSKDVLV WKDW WKRVH GHVLJQDWHG PXVW PHHW WKH TXDOLILFDWLRQV RI EHLQJ OHDUQHG LQ WKH ODZ UHSXWHG IRU SURELW\
LQWHJULW\LPSDUWLDOLW\LQFRUUXSWLELOLW\DQGIDLUQHVVDQGPXVWKDYHKDGQRSUHYLRXVFRQQHFWLRQLQWKLVPDWWHUHLWKHU
DV FRXQVHO RU LQYHVWLJDWRU LV FHUWDLQO\ IDU PRUH GHVLUDEOH WKDQ WKH SUHVHQW VLWXDWLRQ ZKHUH VXFK JUDYH FKDUJHV
ZHUHVXPPDULO\ILOHGZLWKWKHPLOLWDU\FRPPLVVLRQDJDLQVWSHWLWLRQHUZLWKRXWKLVKDYLQJEHHQSUHYLRXVO\LQIRUPHG
RIWKHFKDUJHVDJDLQVWKLPQRUJLYHQWKHEHQHILWRIDQ\SUHOLPLQDU\LQYHVWLJDWLRQ
*RLQJ E\ WKH YHU\ VWDQGDUGV RI XWPRVW IDLUQHVV LPSDUWLDOLW\ DQG REMHFWLYLW\ VHW E\ WKH 3UHVLGHQW LQ WKH
$GPLQLVWUDWLYH 2UGHU DQG SUHVFLQGLQJ IURP WKH XQVHWWOHG TXHVWLRQ RI ZKHWKHU SHWLWLRQHU ZRXOG KDYH WKURXJK
FRXQVHOWKHULJKWRIFURVVH[DPLQDWLRQRIWKHZLWQHVVHVSUHVHQWHGDJDLQVWKLPLWZLOOEHUHDGLO\DSSUHFLDWHGWKDWLQ
VXFK SUHOLPLQDU\ LQYHVWLJDWLRQ E\ D QRQPLOLWDU\ VSHFLDO FRPPLWWHH ZKROO\ FRPSRVHG RI FLYLOLDQV SHWLWLRQHU PD\
WKHQIDLUO\DQGSURSHUO\EHUHSUHVHQWHGE\H[SHULHQFHGFRXQVHOZKRFDQFRPSHWHQWO\KDQGOHKLVGHIHQVHDQGDW
OHDVWSUHVHQWWLPHO\REMHFWLRQVWRWKHDGPLVVLRQRILQFRPSHWHQWRULQDGPLVVLEOHHYLGHQFHQRWWRPHQWLRQWKDWWKH
ILYH PHQ OHDUQHG LQ WKH ODZ FRPSRVLQJ WKH FRPPLWWHH ZRXOG PRVW OLNHO\ PRWX SURSLR UXOH RXW DQ\ VXFK
LQDGPLVVLEOH HYLGHQFH 7KLV ZRXOG EH LQ FRQWUDVW WR WKH SHUSHWXDWLRQ SURFHHGLQJV LQ WKH PLOLWDU\ WULEXQDO ZKHUH
SHWLWLRQHUKDVGLVFKDUJHGDOOKLVFRXQVHOVFLYLOLDQDQGPLOLWDU\EHFDXVHRIWKHODFNRIMXULVGLFWLRQLQKLVYLHZDV
ZHOODVSHUWKLVRSLQLRQRIWKHPLOLWDU\FRPPLVVLRQRYHUFLYLOLDQVOLNHKLPIRUDOOHJHGSUHPDUWLDOODZFLYLORIIHQVHV
DQGWKHQXOOLW\RIWKHSURFHHGLQJVWKHUHLQDQGWKXVKDVEHHQGHSULYHGDOWKRXJKE\KLVRZQDFWRILQGLVSHQVDEOH
OHJDOUHSUHVHQWDWLRQDQGDVVLVWDQFHLQWKHSURFHHGLQJVZKHUHKLVYHU\OLIHOLEHUW\DQGKRQRUDUHDWVWDNH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
7KH REMHFWLYH RI WKH SHUSHWXDWLRQ SURFHHGLQJV PD\ SURSHUO\ EH DFKLHYHG E\ WKH 6SHFLDO 5HLQYHVWLJDWLQJ
&RPPLWWHHEHIRUHZKRPWKHWHVWLPRQLDOHYLGHQFHVRXJKWWREHSHUSHWXDWHGVKRXOGEHSUHVHQWHGLQWKHGLVFKDUJH
RI LWV DVVLJQHG WDVN WR FRQGXFW D SUHOLPLQDU\ LQYHVWLJDWLRQ WR GHWHUPLQH ZKHWKHU RU QRW WKH FKDUJHV DJDLQVW
SHWLWLRQHU VKRXOG VWDQG DQG SHWLWLRQHU PDGH WR IDFH WULDO +ROGLQJ WKH SHUSHWXDWLRQ SURFHHGLQJV EHIRUH WKH
FRPPLWWHHZRXOGGLVSRVHRIWKHOHJDOUHTXLUHPHQWVXQGHU3'1RLWVHOIWKDWWKHSURFHHGLQJVEHKDGEHIRUHD
PLOLWDU\WULEXQDOZLWKMXULVGLFWLRQDQGEHIRUHZKLFKDFDVHLVSHQGLQJ(YHQWKRXJKWHFKQLFDOO\DVFRQWHQGHGE\
UHVSRQGHQWV WKH FDVHV DUH VWLOO SHQGLQJ ZLWK WKH PLOLWDU\ WULEXQDO LW VHHPV REYLRXV IURP WKH YHU\ WHUPV RI
$GPLQLVWUDWLYH 2UGHU 1R WKDW WKH FKDUJHV DUH LQ IDFW GHHPHG ZLWKGUDZQ IURP WKH PLOLWDU\ WULEXQDO DQG WKH
ODWWHU FDQQRW KROG DQ\ SURFHHGLQJV IRU DV ORQJ DV WKH FRPPLWWHH KDV QRW FRPSOHWHG LWV SUHOLPLQDU\ LQYHVWLJDWLRQ
DQGGHWHUPLQHGWKHUHDIWHUWKHH[LVWHQFHRIDSULPDIDFLHFDVHVXIILFLHQWWROHWWKHFKDUJHVUHPDLQDQGWRUHTXLUH
SHWLWLRQHUWRIDFHWULDO7KH$GPLQLVWUDWLYH2UGHUWKXVH[SUHVVO\SURYLGHVIRUWKHSHUSHWXDWLRQRIDQ\WHVWLPRQLDO
HYLGHQFHSUHVHQWHGEHIRUHWKH&RPPLWWHHDQGIRULWVXVHLQDQ\SURFHHGLQJEHIRUHDQ\FRXUWRUWULEXQDOFLYLORU
PLOLWDU\ZLWKRXWQHHGRISUHVHQWLQJWKHZLWQHVVRUZLWQHVVHVZKRWHVWLILHGLQFDVHVXFKZLWQHVVRUZLWQHVVHVKDYH
GLHGRUOHIWWKHFRXQWU\RUEHFRPHXQDEOHWRWHVWLI\
$VVXPLQJ QHYHUWKHOHVV WKDW WKH SHUSHWXDWLRQ RI WHVWLPRQ\ SURFHHGLQJV FRXOG EH SURSHUO\ FRQGXFWHG EHIRUH
UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ SHWLWLRQHU
V SK\VLFDO SUHVHQFH DW WKH SURFHHGLQJV FRXOG QRW EH FRPSHOOHG E\
YLUWXHRIKLVH[SUHVVZDLYHUWKHUHRIDVH[SOLFLWO\DOORZHGE\WKH&RQVWLWXWLRQDQGE\3'1RLWVHOI
2Q $SULO UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ KDG UHFRJQL]HG SHWLWLRQHU
V ULJKW WR ZDLYH KLV SUHVHQFH DW WKH
SURFHHGLQJV DQG JUDQWHG KLV UHTXHVW WR EH UHWXUQHG WR KLV GHWHQWLRQ TXDUWHUV %XW RQ $SULO LW UHYHUVHG
LWVHOI DW WKH PLOLWDU\ SURVHFXWRU
V LQVWDQFH DQG UXOHG LQVWHDG WKDW SHWLWLRQHU
V SUHVHQFH DW HYHU\ VWDJH RI WKH
SURFHHGLQJLVLQGLVSHQVDEOHRQWKHJURXQGDVVWDWHGE\WKH6ROLFLWRU*HQHUDOWKDWWKHFKDUJHVDJDLQVWSHWLWLRQHU
LQYROYH FDSLWDO RIIHQVHV DQG SHWLWLRQHU LV LQ FXVWRG\ DQG SHWLWLRQHU KDG FODLPHG LQ WKLV FDVH WKDW SURFHHGLQJV IRU
WKHSHUSHWXDWLRQRIWHVWLPRQ\ZHUHDFWXDOO\DSDUWRI
WULDO3HWLWLRQHU
VVXEPLWWDOWKDWKHFDQQRWEHFRPSHOOHGWREHSUHVHQWDWWKHSURFHHGLQJVHYHQDJDLQVWKLVZLOOE\YLUWXH
RI KLV H[SUHVV ZDLYHU LV PHULWRULRXV :KHUHDV SUHYLRXVO\ VXFK ULJKW RI ZDLYHU RI WKH DFFXVHG
V SUHVHQFH LQ FULPLQDO
SURFHHGLQJVZDVJHQHUDOO\UHFRJQL]HG VDYH LQ FDSLWDO FDVHV O OHDGLQJ WR WKH VXVSHQVLRQ RI WULDO ZKHQHYHU WKH DFFXVHG
ZDV DW ODUJH RU ZKHUH WKH DFFXVHG ZDV LQ FXVWRG\ DOWKRXJK IRU D QRQFDSLWDO RIIHQVH WKH &RQVWLWXWLRQ QRZ
XQTXDOLILHGO\ SHUPLWV WULDO LQ DEVHQWLD HYHQ RI FDSLWDO FDVHV DQG SURYLGHV WKDW DIWHU DUUDLJQPHQW WULDO PD\ SURFHHG
QRWZLWKVWDQGLQJWKHDEVHQFHRIWKHDFFXVHGSURYLGHGWKDWKHKDVEHHQGXO\QRWLILHGDQGKLVIDLOXUHWRDSSHDULVXQMXVWLILHG
WKXVUHFRJQL]LQJWKHULJKWRIDQDFFXVHGWRZDLYHKLVSUHVHQFH3'1RXQGHUZKLFKWKHSHUSHWXDWLRQSURFHHGLQJV
DUHEHLQJFRQGXFWHGLQPLOLWDU\FRPPLVVLRQVDVWKHFRXQWHUSDUWUXOHIRUVLPLODUSURFHHGLQJVEHIRUHWKHUHJXODUFLYLOFRXUWV
DV SURYLGHG LQ 5XOH VHFWLRQ RI WKH 5XOHV RI &RXUW H[SOLFLWO\ SURYLGHV WKDW DIWHU UHDVRQDEOH QRWLFH WR DQ DFFXVHG WR
DWWHQG WKH SHUSHWXDWLRQ SURFHHGLQJV WKH GHSRVLWLRQ E\ TXHVWLRQ DQG DQVZHU RI WKH ZLWQHVV PD\ SURFHHG LQ WKH DFFXVHG
V
DEVHQFHDQGWKHIDLOXUHRUUHIXVDOWRDWWHQGWKHH[DPLQDWLRQRUWKHWDNLQJRIWKHGHSRVLWLRQVKDOOEHFRQVLGHUHGDZDLYHU
7KXVDQDFFXVHG
VULJKWRIWRWDOZDLYHURIKLVSUHVHQFHHLWKHUH[SUHVVO\RULPSOLHGO\E\XQMXVWLILHGIDLOXUHRUUHIXVDOWRDWWHQG
WKHSURFHHGLQJVLVQRZH[SOLFLWO\UHFRJQL]HGDQGKHFDQQRWEHFRPSHOOHGWREHSUHVHQWDVDJDLQVWKLVH[SUHVVZDLYHU
(YHQ DV DPRQJ WKH PHPEHUV RI WKH &RXUW ZKR YRWHG DV SHU WKH $SULO UHVROXWLRQ LQ IDYRU RI TXDOLILHG
ZDLYHULHWKDWWKHDFFXVHG
VSUHVHQFHFRXOGEHUHTXLUHGLQWKHLQVWDQFHVZKHUHKLVSUHVHQFHLVQHHGHGIRUKLV
LGHQWLILFDWLRQE\WKHSURVHFXWLRQZLWQHVVWKHYLHZZDVH[SUHVVHGWKDWVXFKSUHVHQFHFRXOGEHGLVSHQVHGZLWKLI
KLVZDLYHUH[SUHVVO\LQFOXGHGDQDGPLVVLRQRIKLVLGHQWLILFDWLRQE\QDPHE\WKHZLWQHVVHVGHSRQHQWV,WVKRXOGEH
QRWHGWKDWVXFKDQDGGLWLRQDOUHTXLUHPHQWZRXOGEHVXSHUIOXRXVEHFDXVHRIWKHWRWDOZDLYHUDVZHOODVEHFDXVHRI
WKHGLVSXWDEOHSUHVXPSWLRQHVWDEOLVKHGE\WKHUXOHRIHYLGHQFHRILGHQWLW\RISHUVRQIURPLGHQWLW\RIQDPH DVLGH
IURPWKHPDQ\SURPLQHQWSXEOLFSRVLWLRQVRFFXSLHGE\SHWLWLRQHUWKURXJKZKLFKKLVLGHQWLILFDWLRQLVPDGHE\WKHSURVHFXWLRQ
ZLWQHVVHVDVQRWHGIURPWKHLUDIILGDYLWVDVVXEPLWWHGE\WKH6ROLFLWRU*HQHUDO
3HWLWLRQHU
VREMHFWLRQWRWKHSHUSHWXDWLRQSURFHHGLQJVSDUWLFXODUO\LIWKH\ZHUHWREHFRQVLGHUHGSDUWRIWKHWULDO
VLQFHWKHYHU\TXHVWLRQDWLVVXHLQWKHFDVHDWEDURQPLOLWDU\FRPPLVVLRQV
ODFNRIMXULVGLFWLRQRYHUSUHPDUWLDOODZ
FLYLO RIIHQVHV DOOHJHGO\ FRPPLWWHG E\ FLYLOLDQV OLNH SHWLWLRQHU ZRXOG EH SUHHPSWHG DQG UHQGHUHG PRRW E\ WKH
SURFHHGLQJVVKRXOGKDYHEHHQJLYHQGXHFRQVLGHUDWLRQE\VDLGFRPPLVVLRQLQVWHDGRIEHLQJXVHGE\LWWRUHTXLUH
KLVSUHVHQFHDJDLQVWKLVZLOO
,WLVFOHDUIURPWKHUXOHWKDWWKHWHVWLPRQ\RUGHSRVLWLRQRIDZLWQHVVPD\EHUHDGRUVXEPLWWHGLQ
HYLGHQFH RQO\ ZKHQ WKH GHSRQHQW LV GHDG RU LQFDSDFLWDWHG WR WHVWLI\ RU FDQQRW EH IRXQG LQ WKH
3KLOLSSLQHV ,I KH ZDV SUHVHQW LQ FRXUW WKHUH LV QR QHHG IRU LQWURGXFLQJ KLV GHSRVLWLRQ LQ HYLGHQFH
EHFDXVHKLVWHVWLPRQ\LVWKHEHVWHYLGHQFHHVSHFLDOO\LQDFDVHOLNHWKHSUHVHQWZKHUHWKHGHSRQHQW
LQ JLYLQJ KLV GHSRVLWLRQ KDG QRW EHHQ FURVVH[DPLQHG E\ WKH GHIHQGDQW DOWKRXJK RI FRXUVH VDLG
IDLOXUHWRFURVVH[DPLQHPD\QRWEHODLGDWWKHGRRURIWKHSURVHFXWLRQ
7KHPRVWWKDWFDQEHVDLGWKHQLVWKDWWKHSHUSHWXDWLRQSURFHHGLQJVPD\EHFRQGLWLRQDOO\FRQVLGHUHGSDUWRIWKH
WULDO RQO\ ZKHQ WKH GHSRQHQWZLWQHVV LV DW WKH WLPH RI WULDO GHDG RU LQFDSDFLWDWHG WR WHVWLI\ RU FDQQRW ZLWK GXH
GLOLJHQFHEHIRXQGLQWKH3KLOLSSLQHV$EVHQWDQ\RIWKHVHFRQGLWLRQVLWLVQRWDSDUWRIWKHWULDODQGWKHZLWQHVVHV
PXVWJLYHWKHLUWHVWLPRQ\DQHZQRWWKHLUSUHYLRXVRUSHUSHWXDWHGGHSRVLWLRQDVWKHEHVWHYLGHQFHVXEMHFWWRWKH
FUXFLEOHRIFURVVH[DPLQDWLRQ
+HQFHSHWLWLRQHUKDGFDXVHWRFRPSODLQDJDLQVWWKHPLOLWDU\SURVHFXWRU
VDPELYDOHQWSRVWXUHWKDW,QWKHILUVWGD\
KH DUJXHG ZH PXVW SURFHHG QRWZLWKVWDQGLQJ WKH SHQGHQF\ EHIRUH WKLV &RXUW RI WKH SHWLWLRQ TXHVWLRQLQJ WKH
FRPPLVVLRQ
VODFNRIMXULVGLFWLRQEHFDXVHWKLVLVQRWSDUWRIWKHWULDO1RZWKHUXOLQJDGYHUVHO\ZDVKDQGHGGRZQ
DOORZLQJSHWLWLRQHU
VZDLYHURIKLVSUHVHQFHEXWWKLVLVDSDUWRIWKHWULDOKH
VD\V
:LWKDOWKHVHTXHVWLRQVSUHVHQWHGVHULRXVLIQRWGLIILFXOWTXHVWLRQVRIODZDQGSDUWLFXODUO\WKHSHWLWLRQHU
VULJKW
WR WRWDOO\ ZDLYH KLV SUHVHQFH DW WKH SURFHHGLQJV SUHVHQWHG DQ LPSRUWDQW QHZ TXHVWLRQ WKDW UHTXLUHG DQ
DXWKRULWDWLYHUXOLQJIURPWKLV&RXUWEHFDXVHRIWKHQHZSURYLVLRQVRIWKH&RQVWLWXWLRQLQYROYHG
6XFK DQ XUJHQW VHULRXV SOHD WR EH JLYHQ D UHDVRQDEOH WLPH DQG RSSRUWXQLW\ WR VHHN UHFRXUVH IURP WKLV &RXUW
ZRXOGKDYHEHHQUHDGLO\DFFHGHGWRE\DUHJXODUFRXUWLQOLQHZLWKHVWDEOLVKHGMXGLFLDOXVDJHDQGSURFHGXUH7KH
6ROLFLWRU *HQHUDO
V UHSO\ RI $SULO DIWHU WKLV &RXUW
V LVVXDQFH RI WKH UHVWUDLQLQJ RUGHU RI $SULO
VXVSHQGLQJ IXUWKHU SURFHHGLQJV E\ WKH FRPPLVVLRQLQ FRQWUDVW WR WKH PLOLWDU\ SURVHFXWRU
V XQ\LHOGLQJ VWDQG
LQFRQJUXRXVO\ EUDQGLQJ WKH ILOLQJ ZLWK WKLV &RXUW RI WKH SHWLWLRQ DW EDU DQG RI WKH VXSSOHPHQWDO SHWLWLRQV DV
GHOD\LQJWDFWLFVDQGGLODWRU\PRYHV ² H[SUHVVO\ ZHOFRPHG DQ\ UXOLQJ E\ WKLV &RXUW ZKHWKHU XQGHU 3UHVLGHQWLDO
'HFUHH 1R WKH SUHVHQFH RI WKH DFFXVHG LV QHFHVVDU\ RU LQGLVSHQVDEOH 7KH GHFLVLRQ RI WKLV &RXUW XSKROGLQJ
SHWLWLRQHU
VULJKWRIZDLYHUYLQGLFDWHVSHWLWLRQHU
VDVVHUWLRQEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQRIKLVULJKWWRNHHSVLOHQW
WRVWD\DORQHQRWWRSDUWLFLSDWH²DULJKWZKLFKLVKLVWRH[HUFLVHRUQRW
5HVSRQGHQWV KDYH XWWHUO\ IDLOHG WR VKRZ WKH H[LVWHQFH RI SXEOLF GDQJHU WKDW ZDUUDQWV WKH VXEVWLWXWLRQ RI
H[HFXWLYHSURFHVVIRUWKHMXGLFLDOSURFHVVDQGWKHVHWWLQJDVLGHRIWKHFRQVWLWXWLRQDOPDQGDWHWKDWORGJHVMXGLFLDO
SRZHU LQ WKH UHJXODU FRXUWV RI ODZ DQG QRW LQ PLOLWDU\ WULEXQDOV DQG JXDUDQWHHV FLYLOLDQV WKH EHQHILWV RI D FLYLOLDQ
FRXUWWULDO7RVXEMHFWFLYLOLDQVWRPLOLWDU\WULDOMXVWOLNHPLOLWDU\SHUVRQQHODQGWURRSVDQGHQHP\EHOOLJHUHQWVUDWKHU
WKDQWRFLYLOLDQWULDOE\WKHUHJXODUFLYLOFRXUWVLVWRQHJDWHWKHFDUGLQDOSULQFLSOHDQGVWDWHSROLF\RIVXSUHPDF\DWDOO
WLPHVRIFLYLOLDQDXWKRULW\RYHUWKH
PLOLWDU\
,Q VHHNLQJ WR MXVWLI\ WKH VXEVWLWXWLRQ RI WKH H[HFXWLYH RU PLOLWDU\ SURFHVV E\ PLOLWDU\ FRPPLVVLRQV IRU WKH MXGLFLDO
SURFHVVRISUHOLPLQDU\LQYHVWLJDWLRQDQGWULDOE\WKHUHJXODUFLYLOFRXUWVZLWKULJKWRIDSSHDOWRWKH6XSUHPH&RXUW
LQYRNHGE\SHWLWLRQHUDVKLVFRQVWLWXWLRQDOULJKWWKH6ROLFLWRU*HQHUDOLQKLVPHPRUDQGXPKDVPDGHDQXPEHURI
EDUHDVVHUWLRQVZLWKRXWHYHQDQ\IDFWXDODYHUPHQWVRUDOOHJDWLRQVLQVXSSRUWWKHUHRIDVIROORZV Wr x
vK T Z k
,QGHHGFLYLOFRXUWVPD\EHRSHQDQGXQGLVWXUEHGLQWKHH[HFXWLRQRIWKHLUIXQFWLRQVDQG\HWPD\EH
ZKROO\ LQFRPSHWHQW WR DYHUW D WKUHDWHQHG GDQJHU RU WR SXQLVK ZLWK DGHTXDWH SURPSWLWXGH DQG
FHUWDLQW\ WKH JXLOW\ FRQVSLUDWRUV ,Q WLPHV RI UHEHOOLRQ LW PD\ RIWHQ KDSSHQ WKDW WKH MXGJHV DUH LQ
DFWLYHV\PSDWK\ZLWKWKHUHEHOVDQGFRXUWVWKHLUPRVWHIILFLHQWDOOLHV([SDUWH0LOOLJDQ:DOO/
(G>&KDVH&-FRQFXUULQJ@
7KHUHPD\EHRWKHUUHDVRQVMXVWLI\LQJWKHFUHDWLRQRIPLOLWDU\WULEXQDOV-XGJHVPD\EHXQZLOOLQJWR
WU\WKHUHEHOVRXWRIIHDURURWKHUPRWLYHV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
[[[[[[[[[
,QRXUFDVHVWXG\VKRZVWKDW&RPPXQLVWVXEYHUVLRQDQGSURSDJDQGDDLPDWWKHSDUDO\]DWLRQRIWKH
ZLOODQGWKHWHUURULVPRIWKHSRSXODWLRQDQGWKHJRYHUQPHQWIXQFWLRQDU\,QPDQ\SDUWVRIWKHFRXQWU\
WKHUHEHOVVXFFHHGHGLQLQWLPLGDWLQJDQGVLOHQFLQJQRWRQO\WKHRIIHQGHGSDUWLHVDQGWKHLUZLWQHVVHV
EXWHYHQWKHMXGJHV
[[[[[[[[[
6WLOO DQRWKHU UHDVRQ IRU WULDO E\ PLOLWDU\ WULEXQDOV LV WKH SRVVLELOLW\ WKDW WKH DFFXVHG PD\ H[SORLW
SURFHGXUDO DGYDQWDJHV DYDLODEOH LQ WKH FLYLO FRXUWV DQG UHQGHU PLOLWDU\ RSHUDWLRQV DJDLQVW WKH
UHEHOOLRQ GLIILFXOW &LWLQJ D :HVW 9LUJLQLD FDVH ZKHUH WKH FRXUW WKHUHLQ UHDVRQHG WKDW
3DUWLFLSDQWV LQ DQ LQVXUUHFWLRQ DUUHVWHG DQG FRPPLWWHG WR WKH FLYLO DXWKRULWLHV FRXOG HDVLO\ ILQG
PHDQV RI GHOD\LQJ WULDO DQG OLEHUDWHG RQ EDLO UHWXUQ WR WKH LQVXUUHFWLRQDU\ FDPS DQG FRQWLQXH WR
UHQGHU DLG DQG WKH FLYLO WULEXQDOV DUH ZKROO\ LQDGHTXDWH WR WKH H[LJHQFLHV RI D VWDWH RI ZDU
LQFLGHQWWRDQLQYDVLRQRULQVXUUHFWLRQ
7KHVH UHIOHFWLRQV RQ WKH FRPSHWHQFH RI WKH FLYLO FRXUWV ILQG QR MXVWLILFDWLRQ LQ WKH IDFWV RI SXEOLF QRWLFH DQG
NQRZOHGJHWRZLW
$QXPEHURIMXGJHVRIFRXUWVRIILUVWLQVWDQFHKDYHEHHQUHPRYHGZLWKWKHDFFHSWDQFHRIWKHLUUHVLJQDWLRQVEXW
WKHUHLVQRWDVLQJOHUHFRUGHGFDVHZKHUHWKHMXGJHVZHUHLQDFWLYHV\PSDWK\ZLWKWKHUHEHOVDQGFRXUWVWKHLU
PRVW HIILFLHQW DOOLHV 7KHUH LV QRW D VLQJOH NQRZQ FDVH VLQFH WKH PDUWLDO ODZ SURFODPDWLRQ RI MXGJHV EHLQJ
XQZLOOLQJWRWU\WKHUHEHOVRXWRIIHDURURWKHUPRWLYHVRURIWKHMXGJHVFRPSODLQDQWVDQGZLWQHVVHVKDYLQJEHHQ
LQWLPLGDWHGDQGVLOHQFHGE\UHEHOV
1HLWKHULVWKHUHDVLQJOHNQRZQLQVWDQFHRIDQDFFXVHGUHEHOKDYLQJH[SORLWHGSURFHGXUDODGYDQWDJHVDYDLODEOHLQ
WKH FLYLO FRXUWV DQG UHQGHULQJ PLOLWDU\ RSHUDWLRQV DJDLQVW WKH UHEHOOLRQ GLIILFXOW VLQFH WKRVH VXVSHFWHG RI
SDUWLFLSDWLRQRUFRQVSLUDF\LQWKHFRPPXQLVWUHEHOOLRQKDYHEHHQDUUHVWHGZLWKRXWULJKWWREDLO*HQHUDO2UGHU1R
LVVXHGE\WKH3UHVLGHQWRQ2FWREHUUHVWRUHGWRWKHFLYLOFRXUWVDODUJHQXPEHURIFULPLQDOFDVHVWKDW
ZHUHWUDQVIHUUHGWRPLOLWDU\WULEXQDOVXSRQWKHSURFODPDWLRQRIPDUWLDOODZRQWKHH[SUHVVSUHPLVHVWKDWSRVLWLYH
VWHSV KDYH EHHQ WDNHQ WR UHYLWDOL]H WKH DGPLQLVWUDWLRQ RI MXVWLFH DQG WKH QHZ &RQVWLWXWLRQ DXWKRUL]HV WKH
UHRUJDQL]DWLRQRIWKHFRXUWVDQGDOWKRXJKWKHUHVWLOOH[LVWDUHDVRIDFWLYHUHEHOOLRQLQWKHFRXQWU\RQWKHZKROH
WKHUHKDVEHHQVXFKDQLPSURYHPHQWLQWKHJHQHUDOFRQGLWLRQVREWDLQLQJLQWKHFRXQWU\DQGLQWKHDGPLQLVWUDWLRQ
RIMXVWLFHDVWRZDUUDQWWKHUHWXUQRIVRPHRIWKHFULPLQDOFDVHVWRWKHMXULVGLFWLRQRIFLYLOFRXUWVDQG
7KHVH SUHPLVHV RI *2 1R DUH ERUQH RXW E\ WKH GDWD DQG SXEOLVKHG UHSRUWV 7KH WZHQW\ PLOLWDU\
FRPPLVVLRQVDPEXODWRU\DQGUHJLRQDOFRPPLVVLRQVKHDULQJFDVHVIURPWLPHWRWLPHLQPDUDWKRQKHDULQJVDV
WKHSUHVVXUHVRIWKHPLOLWDU\VHUYLFHDOORZWKHPLOLWDU\FRPPLVVLRQVWRFRQYHQHFRXOGQRWFRQFHLYDEO\PDWFKWKHZRUNDQG
FDVHV GLVSRVLWLRQ RI DURXQG WKUHH KXQGUHG DQG WZHQW\ FRXUWV RI ILUVW LQVWDQFH DQG FLUFXLW FULPLQDO FRXUWV DOO RYHU WKH
FRXQWU\ZRUNLQJFRQWLQXRXVO\DQGUHJXODUO\WKURXJKRXWWKH\HDU
7KHDUJXPHQWRISURFHGXUDOGHOD\VLQWKHFLYLOFRXUWVDQGQHHGRISURPSWDQGFHUWDLQSXQLVKPHQWKDVEHHQORQJ
FXW GRZQ E\ WKH ODWH -XVWLFH )UDQN 0XUSK\ LQ KLV FRQFXUULQJ RSLQLRQ LQ 'XQFDQ ZKHQ KH VWUHVVHG WKDW FLYLO
OLEHUWLHVDQGPLOLWDU\H[SHGLHQF\DUHRIWHQLUUHFRQFLODEOHDQGWKDWWKHVZLIWWULDODQGSXQLVKPHQWZKLFKWKHPLOLWDU\GHVLUHVLV
SUHFLVHO\ ZKDW WKH %LOO RI 5LJKWV RXWODZV :H ZRXOG EH IDOVH WR RXU WUXVW LI ZH DOORZHG WKH WLPH LW WDNHV WR JLYH HIIHFW WR
FRQVWLWXWLRQDOULJKWVWREHXVHGDVWKHYHU\UHDVRQIRUWDNLQJDZD\WKRVHFRQVWLWXWLRQDOULJKWVDVIROORZV Wr x
vK T Z k
'HOD\V LQ WKH FLYLO FRXUWV DQG VORZQHVV LQ WKHLU SURFHGXUH DUH DOVR FLWHG DV DQ H[FXVH IRU VKHDULQJ
DZD\ WKHLU FULPLQDO MXULVGLFWLRQ DOWKRXJK ODFN RI NQRZOHGJH RI DQ\ XQGXH GHOD\V LQ WKH +DZDLLDQ
FRXUWVLVDGPLWWHG,WLVVDLGWKDWWKHPLOLWDU\
FDQQRWEURRNDGHOD\
DQGWKDW
WKHSXQLVKPHQWPXVWEH
VZLIWWKHUHLVDQHOHPHQWRIWLPHLQLWDQGZHFDQQRWDIIRUGWROHWWKHWULDOOLQJHUDQGEHSURWUDFWHG
7KLV PLOLWDU\ DWWLWXGH WRZDUG FRQVWLWXWLRQDO SURFHVVHV LV QRW QRYHO &LYLO OLEHUWLHV DQG PLOLWDU\
H[SHGLHQF\DUHRIWHQLUUHFRQFLODEOH,WGRHVWDNHWLPHWRVHFXUHDJUDQGMXU\LQGLFWPHQWWRDOORZWKH
DFFXVHGWRSURFXUHDQGFRQIHUZLWKFRXQVHOWRSHUPLWWKHSUHSDUDWLRQRIDGHIHQVHWRIRUPDSHWLW
MXU\ WR UHVSHFW WKH HOHPHQWDU\ UXOHV RI SURFHGXUH DQG HYLGHQFH DQG WR MXGJH JXLOW RU LQQRFHQFH
DFFRUGLQJWRDFFHSWHGUXOHVRIODZ%XWH[SHULHQFHKDVGHPRQVWUDWHGWKDWVXFKWLPHLVZHOOVSHQW,W
LVWKHRQO\PHWKRGZHKDYHRILQVXULQJWKHSURWHFWLRQRIFRQVWLWXWLRQDOULJKWVDQGRIJXDUGLQJDJDLQVW
RSSUHVVLRQ 7KH VZLIW WULDO DQG SXQLVKPHQW ZKLFK WKH PLOLWDU\ GHVLUHV LV SUHFLVHO\ ZKDW WKH %LOO RI
5LJKWV RXWODZV :H ZRXOG EH IDOVH WR RXU WUXVW LI ZH DOORZHG WKH WLPH LW WDNHV WR JLYH HIIHFW WR
FRQVWLWXWLRQDOULJKWVWREHXVHGDVWKHYHU\UHDVRQIRUWDNLQJDZD\WKRVHULJKWV,WLVRXUGXW\DVZHOO
DVWKDWRIWKHPLOLWDU\WRPDNHVXUHWKDWVXFKULJKWVDUHUHVSHFWHGZKHQHYHUSRVVLEOHHYHQWKRXJK
WLPHPD\EHFRQVXPHG
$VDOUHDG\LQGLFDWHGDERYHLWVKRXOGEHQRWHGWKDWQRDFWXDOFDVHRIXQGXHGHOD\VLQWKHSURVHFXWLRQRIFULPLQDO
FDVHVLQWKHUHJXODUFLYLOFRXUWVKDVEHHQFODLPHGE\UHVSRQGHQWVQRUKDVLWEHHQVKRZQWKDWPLOLWDU\QHFHVVLW\RU
SXEOLF GDQJHU UHTXLUH WKDW SHWLWLRQHU EH GHSULYHG RI KLV ULJKWV WR GXH SURFHVV DQG WR WKH FROG QHXWUDOLW\ RI DQ
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
LPSDUWLDOWULEXQDOXQGHUWKHMXGLFLDOSURFHVVVKRXOGWKHUHLQYHVWLJDWLRQRUGHUHGE\WKH3UHVLGHQWELQGKLPRYHUIRU
WULDO
7KH6ROLFLWRU*HQHUDO
VVXEPLWWDOWKDWWKHGHFUHHVDQGRUGHUVUHODWLQJWRPLOLWDU\FRPPLVVLRQVDUHQRZSDUWRI
WKHODZRIWKHODQGDQGDUHEH\RQGTXHVWLRQDQGWKDWDVWKHWULDODQGSXQLVKPHQWRIFLYLOLDQVE\PLOLWDU\WULEXQDOV
XQGHUWKHFLUFXPVWDQFHVDUHYDOLGDQGFRQVWLWXWLRQDOREMHFWLRQVEDVHGRQGLIIHUHQFHVEHWZHHQFLYLODQGPLOLWDU\
FRXUWVDUHLPPDWHULDOLVFRQVWLWXWLRQDOO\LQILUPDQGXQWHQDEOH
7KH6ROLFLWRU*HQHUDO
VSUHPLVHLVWKDWZLWKWKHUDWLILFDWLRQRIWKHQHZ&RQVWLWXWLRQPDUWLDOODZDVSURFODLPHGE\
WKH3UHVLGHQWEHFDPHSDUWRIWKHODZRIWKHODQGDQGQRZGHULYHVLWVYDOLGLW\IURPWKHQHZFRQVWLWXWLRQDQGWKDW
E\YLUWXHRIVHFWLRQRIWKH7UDQVLWRU\3URYLVLRQV WKHGHFUHHVDQGRUGHUVRQWKHPLOLWDU\FRPPLVVLRQVDUHQRZDOVR
SDUW RI WKH ODZ RI WKH ODQG DQG EH\RQG TXHVWLRQ VWDWHV D UDWKHU SUROL[ DQG VZHHSLQJ FRQFHSW WKDW FDQQRW EH SUHFLSLWDWHO\
VDQFWLRQHG
0DUWLDOODZKDVQRWEHFRPHSDUWRIWKHODZRIWKHODQGDQGEH\RQGTXHVWLRQE\YLUWXHRIWKHFRPLQJLQWRIRUFHRI
WKH&RQVWLWXWLRQ,QIDFWWKHVDLG&RQVWLWXWLRQKDVSUHFLVHO\UHSURGXFHGWKH&RQVWLWXWLRQ
VFRPPDQGHU
LQFKLHI FODXVH ZLWK SRZHU WR GHFODUH PDUWLDO ODZ OLPLWHG WR H[DFWO\ WKH VDPH FDXVHV RI LQYDVLRQ LQVXUUHFWLRQ RU
UHEHOOLRQRULPPLQHQWGDQJHUDQGZLWKH[DFWO\WKHVDPHUHTXLUHPHQWWKDWWKHSXEOLFVDIHW\UHTXLUHLW *RLQJ E\
WKHGRFWULQHHQXQFLDWHGLQ/DQVDQJYV*DUFLDE\DXQDQLPRXV&RXUWWKHH[LVWHQFHRIIDFWXDOEDVHVIRUWKHSURFODPDWLRQ
DQGFRQWLQXDWLRQRIPDUWLDOODZPD\XQGHUWKHVDLGSURYLVLRQEHMXGLFLDOO\LQTXLUHGLQWRLQRUGHUWRGHWHUPLQHWKHFRQVWLWXWLRQDO
VXIILFLHQF\ WKHUHRI DV ZHOO DV WR FLUFXPVFULEH WKH FRQVWUDLQWV WKHUHRI LQ SDUWLFXODU FDVHV ZKHUH WKH\ FODVK ZLWK DQ
LQGLYLGXDO
V FRQVWLWXWLRQDO ULJKWV ZLWKLQ WKH ERXQGV RI QHFHVVLW\ IRU WKH SXEOLF HQGV DQG WKH SXEOLF VDIHW\ DV LQGHHG WKLV
&RXUWGLGSDVVRQVXFKTXHVWLRQVLQWKH+DEHDV&RUSXVFDVHV$QGDVWKH3UHVLGHQWH[SUHVVO\VWDWHGDWKLVZRUOGZLGH
VDWHOOLWH SUHVV FRQIHUHQFH RI 6HSWHPEHU WKH GXUDWLRQ RI PDUWLDO ODZ LV RQO\ DV ORQJ DV QHFHVVDU\ DV SHU WKH
IROORZLQJSHUWLQHQWH[FHUSWRIKLVVWDWHPHQWWKHUHRQ Wr x
vK T Z k
2I FRXUVH WKH SUREOHP KHUH LV LI \RX VD\ WKDW PDUWLDO ODZ OHDGV WR GHPRFUDF\ KRZ ORQJ DUH \RX
JRLQJWRPDLQWDLQPDUWLDOODZ",VD\DJDLQWKDWRQO\DVORQJDVQHFHVVDU\$VWKHFRQVWLWXWLRQDOLVWVSXW
LWQHFHVVLW\JDYHOLIHWRPDUWLDOODZDQGPDUWLDOODZFDQQRWFRQWLQXHXQOHVVQHFHVVLW\DOORZVLWWROLYH
7KHFLWHG7UDQVLWRU\3URYLVLRQNQRZQDVWKHYDOLGDWLQJSURYLVLRQSXWVWKHLPSULPDWXURIDODZXSRQWKH3UHVLGHQW
V
DFWVDQGGHFUHHVXQGHUPDUWLDOODZZKLFKZHUHQRWZLWKLQRUEH\RQGKLVDOORFDWHGFRQVWLWXWLRQDOSRZHUV$VDSWO\
VWDWHGE\-XVWLFH0XxR]3DOPDLQKHUVHSDUDWHRSLQLRQLQWKH+DEHDV&RUSXVFDVHVWKHSHRSOHFRXOGQRWE\WKH
&RQVWLWXWLRQ KDYH WKURZQ DZD\ DOO WKHLU SUHFLRXV OLEHUWLHV WKH VDFUHG LQVWLWXWLRQV HQVKULQHG LQ WKHLU
&RQVWLWXWLRQIRUWKDWZRXOGEHWKHUHVXOWLIZHVD\WKDWWKHSHRSOHKDYHVWDPSHGWKHLUDSSURYDORQDOOWKHDFWVRI
WKH 3UHVLGHQW H[HFXWHG DIWHU WKH SURFODPDWLRQ RI PDUWLDO ODZ LUUHVSHFWLYH RI DQ\ WDLQW RI LQMXVWLFH DUELWUDULQHVV
RSSUHVVLRQ RU FXOSDEOH YLRODWLRQ RI WKH &RQVWLWXWLRQ WKDW PD\ FKDUDFWHUL]H VXFK DFWV 6XUHO\ WKH SHRSOH DFWLQJ
WKURXJK WKHLU FRQVWLWXWLRQDO GHOHJDWHV FRXOG QRW KDYH ZULWWHQ D IXQGDPHQWDO ODZ ZKLFK JXDUDQWHHV WKHLU ULJKWV WR
OLIHOLEHUW\DQGSURSHUW\DQGDWWKHVDPHWLPHLQWKHVDPHLQVWUXPHQWSURYLGHIRUDZHDSRQWKDWFRXOGVSHOOGHDWK
WRWKHVHULJKWV
7KH FRQWHQWLRQ WKDW WKH GHFUHHV DQG RUGHUV RQ PLOLWDU\ FRPPLVVLRQV DV SDUW RI WKH ODZ RI WKH ODQG DUH EH\RQG
TXHVWLRQUHDOO\EHJVWKHTXHVWLRQIRUDVZDVVWUHVVHGE\-XVWLFH0XxR]3DOPDLWZRXOGEHLQFRQJUXRXVWKDW
ZKLOHWKHDFWVRIWKHUHJXODU1DWLRQDO$VVHPEO\DVWKHSHUPDQHQWUHSRVLWRU\RIOHJLVODWLYHSRZHUDUHVXEMHFWWR
MXGLFLDO UHYLHZ WKH DFWV RI LWV WHPSRUDU\ VXEVWLWXWH WKDW LV WKH LQFXPEHQW 3UHVLGHQW VXFK DV WKH GHFUHHV DQG
RUGHUVLQTXHVWLRQZRXOGEHFODLPHGWREHEH\RQGTXHVWLRQ
,QGHHG WKH PDMRULW\ UHVROXWLRQ UHFRJQL]HV WKDW 2I FRXUVH IURP WKH IDFW WKDW WKH 3UHVLGHQW KDV WKLV UDQJH RI
GLVFUHWLRQLWGRHVQRWQHFHVVDULO\IROORZWKDWHYHU\DFWLRQKHPD\WDNHQRPDWWHUKRZXQMXVWLILHGE\WKHH[LJHQF\
ZRXOGEHDUWKHLPSULPDWXURIYDOLGLW\
:KLOHWKHGHFUHHVDQGRUGHUVRQPLOLWDU\WULEXQDOVZHUHPDGHSDUWRIWKHODZRIWKHODQGE\WKHFLWHG7UDQVLWRU\
3URYLVLRQ DVVXPLQJ WKDW WKH\ KDG EHHQ SURSHUO\ VXEPLWWHG IRU WKH SXUSRVH VWLOO WKLV JHQHUDO DQG WUDQVLWRU\
SURYLVLRQ FDQ LQ QR ZD\ VXSHUVHGH RU QXOOLI\ WKH VSHFLILF DOORFDWLRQ RI MXULVGLFWLRQ DQG MXGLFLDO SRZHU WR WKH
6XSUHPH&RXUWDQGWKHUHJXODUFRXUWVRIMXVWLFHDVHVWDEOLVKHGE\ODZXQGHU$UWLFOH;VHFWLRQRIWKH&RQVWLWXWLRQ
QRU WKHLU SURSHU H[HUFLVH RI MXULVGLFWLRQ WR WKH H[FOXVLRQ RI QRQMXGLFLDO DJHQFLHV XQGHU VHFWLRQ RI $UWLFOH ;9,,
ZKLFKSURYLGHVWKDW Wr x
vK T Z k
6(&$OOFRXUWVH[LVWLQJDWWKHWLPHRIWKHUDWLILFDWLRQRIWKLV&RQVWLWXWLRQVKDOOFRQWLQXHDQGH[HUFLVH
WKHLUMXULVGLFWLRQXQWLO RWKHUZLVH SURYLGHG E\ ODZ LQ DFFRUGDQFH ZLWK WKLV &RQVWLWXWLRQ DQG DOO FDVHV
SHQGLQJ LQ VDLG FRXUWV VKDOO EH KHDUG WULHG DQG GHWHUPLQHG XQGHU WKH ODZV WKHQ LQ IRUFH 7KH
SURYLVLRQVRIWKHH[LVWLQJ5XOHVRI&RXUWQRWLQFRQVLVWHQWZLWKWKLV&RQVWLWXWLRQVKDOOUHPDLQRSHUDWLYH
XQOHVVDPHQGHGPRGLILHGRUUHSHDOHGE\WKH6XSUHPH&RXUWRUWKH1DWLRQDO$VVHPEO\$UW;9,,
,QVRIDUDVWKHTXHVWLRQHGGHFUHHVDQGRUGHUVHQFURDFKHGXSRQWKHMXULVGLFWLRQRIWKHUHJXODUFRXUWVRYHUWKHWULDO
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
RIFLYLOLDQVWKH\PXVWEHGHHPHGDEURJDWHGE\WKHFLWHGSURYLVLRQVRIWKH&RQVWLWXWLRQLWVHOILQDFFRUGDQFHZLWK
WKH HVWDEOLVKHG UXOH WKDW VWDWXWHV DV ZHOO DV H[HFXWLYH RUGHUV DQG UHJXODWLRQV WKDW DUH LQFRQVLVWHQW ZLWK DQG
WUDQVJUHVVWKHSURYLVLRQVRIDQHZ&RQVWLWXWLRQPXVWEHGHHPHGUHSHDOHGWKHUHE\
$VQRWHGLQWKHZULWHU
VSUHYLRXVRSLQLRQVWKHVSHFLILFOHJLVODWLYHSRZHUVJUDQWHGWKHLQFXPEHQW3UHVLGHQWLQVHFWLRQ
RI WKH DUWLFOH RQ 7UDQVLWRU\ 3URYLVLRQV DUH OLPLWHG WR PRGLI\LQJ UHYRNLQJ RU VXSHUVHGLQJ WKH LQFXPEHQW 3UHVLGHQW
V
YDOLGDWHGDFWVDQGGHFUHHVGRQHRULVVXHGSULRUWRWKHSURFODLPHGUDWLILFDWLRQRQ-DQXDU\RIWKH&RQVWLWXWLRQ
1R SRVWUDWLILFDWLRQ OHJLVODWLYH SRZHUV DUH WKHUHLQ JUDQWHG WKH LQFXPEHQW 3UHVLGHQW DQG VXFK OHJLVODWLYH SRZHU RU PRUH
DFFXUDWHO\PLOLWDU\SRZHUXQGHUPDUWLDOUXOHWKDWKDVEHHQH[HUFLVHGE\KLPWKHUHDIWHULQWKHDEVHQFHRIDSDUOLDPHQWPXVW
UHVWRQWKHODZRIQHFHVVLW\RISUHVHUYDWLRQRIWKH6WDWHDQGWKHGHFUHHLQJRIVXFKQHFHVVDU\PHDVXUHVDVZLOOVDIHJXDUG
WKH5HSXEOLFDQGVXSSUHVVWKHUHEHOOLRQRULQYDVLRQ2QWKHRWKHUKDQGVHFWLRQRIWKHVDPH$UWLFOHH[SUHVVO\UHVHUYHVWR
WKH1DWLRQDO$VVHPEO\WKHSRZHUWRDPHQGPRGLI\RUUHSHDODOOH[LVWLQJODZVQRWLQFRQVLVWHQWZLWKWKLV&RQVWLWXWLRQZKLFK
VKDOOUHPDLQRSHUDWLYH$PRQJVXFKH[LVWLQJODZVZKRVHDPHQGPHQWPRGLILFDWLRQRUUHSHDODUHUHVHUYHGWRWKH1DWLRQDO
$VVHPEO\DUHWKHODZVKHUHLQLQYROYHGYL]WKH$QWL6XEYHUVLRQ$FW5HSXEOLF$FW1RDQGWKHH[LVWLQJ5XOHVRI&RXUW
ZLWK WKHLU VDIHJXDUGV IRU WKH ULJKWV RI DQ DFFXVHG GHIHQGDQW $W DQ\ UDWH DQ\ VXFK SUHVLGHQWLDO GHFUHHV DQG RUGHUV
FDQQRWSUHMXGLFHWKHYHVWHGULJKWVRIDGHIHQGDQWDFFXVHGDVWRSUHPDUWLDOODZRIIHQVHVDOOHJHGO\FRPPLWWHGE\KLPQRUEH
JLYHQDQDGYHUVHH[SRVWIDFWRHIIHFWDJDLQVWKLP
5HVSRQGHQWV
DVVXPSWLRQRIWKHYDOLGLW\RIPLOLWDU\WULDOVRIFLYLOLDQVDQGFRQFOXVLRQWKDWREMHFWLRQVEDVHGRQ
GLIIHUHQFHVEHWZHHQFLYLODQGPLOLWDU\FRXUWVDUHLPPDWHULDOPXVWQHFHVVDULO\IDLO
,WKDVEHHQVKRZQWKDWUHVSRQGHQWVKDYHIDLOHGWRVKRZWKHH[LVWHQFHRIVRPHRYHUSRZHULQJIDFWRUWKDWPDNHVD
UHFRJQLWLRQ RI SHWLWLRQHU
V DQG RWKHU FLYLOLDQV
FRQVWLWXWLRQDO ULJKWV WR GXH SURFHVV LQFRPSDWLEOH ZLWK WKH SXEOLF
VDIHW\DVWRZDUUDQWWKHWHPSRUDU\FDVWLQJDVLGHRUVXVSHQVLRQRIVXFKULJKWV2QWKHFRQWUDU\WKHLVVXDQFHRI
WKH UHLQYHVWLJDWLRQ RUGHU XQGHU $GPLQLVWUDWLYH 2UGHU 1R IRU WKH QRQPLOLWDU\ 6SHFLDO 5HLQYHVWLJDWLQJ
&RPPLWWHHFUHDWHGWKHUHXQGHUWRFRQGXFWDSUHOLPLQDU\LQYHVWLJDWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHUVKRZVWKDW
QRHOHPHQWRISXEOLFVDIHW\LVKHUHLQLQYROYHG
7KH YHVWHG ULJKWV LQYRNHG E\ SHWLWLRQHU DV HVVHQWLDO HOHPHQWV RI KLV EDVLF ULJKW WR GXH SURFHVV ZKLFK DUH QRW
JUDQWHG KLP XQGHU WKH GHFUHHV DQG RUGHUV IRU KLV WULDO E\ UHVSRQGHQW PLOLWDU\ FRPPLVVLRQ DUH VXEVWDQWLDO DQG
YLWDOYL]KLVULJKWWRDSUHOLPLQDU\LQYHVWLJDWLRQDVDSSDUHQWO\UHFRJQL]HGE\$GPLQLVWUDWLYH2UGHU1RDVWR
WKHQRQVXEYHUVLRQFKDUJHVZLWKULJKWWRFRXQVHODQGRIFURVVH[DPLQDWLRQRIWKHZLWQHVVHVDJDLQVWKLPDQGWKH
ULJKWXQGHUWKH$QWLVXEYHUVLRQ$FWWRDSUHOLPLQDU\LQYHVWLJDWLRQE\WKHSURSHUFRXUWRIILUVWLQVWDQFHKLVULJKWDVD
FLYLOLDQ WR EH WULHG E\ MXGLFLDO SURFHVV E\ WKH UHJXODU LQGHSHQGHQW FLYLOLDQ FRXUWV SUHVLGHG E\ SHUPDQHQW MXGJHV
ZLWKWHQXUHDQGZLWKDOOWKHVSHFLILFVDIHJXDUGVHPERGLHGLQWKHMXGLFLDOSURFHVVDQGKLVULJKWWRDSSHDOLQFDSLWDO
FDVHVWRWKLV&RXUWZKHUHLQDTXDOLILHGPDMRULW\RIWHQDIILUPDWLYHYRWHVIRUDIILUPDQFHRIWKHGHDWKSHQDOW\LV
UHTXLUHG
7KH RUGLQDU\ OD\PDQ DV ZHOO DV SUDFWLWLRQHU DUH WRWDOO\ XQIDPLOLDU ZLWK WKH VXPPDU\ UXOHV DQG SURFHGXUHV RI
PLOLWDU\ FRPPLVVLRQV DV FRPSDUHG WR WKH HVWDEOLVKHG SURFHGXUHV XQGHU WKH 5XOHV RI &RXUW EHIRUH WKH FLYLOLDQ
FRXUWV ZKLFK SHU VH SODFHV WKH FLYLOLDQ RQ WULDO EHIRUH D PLOLWDU\ FRPPLVVLRQ LQ D GLVDGYDQWDJHRXV SRVLWLRQ $
FXUVRU\ UHYLHZ RI WKH WUDQVFULSWV IXUQLVKHG WKH &RXUW VKRZV WKHVH SHFXOLDULWLHV WKDW QRUPDOO\ ZRXOG QRW RFFXU LQ
FLYLOLDQWULDOVDVIROORZV
7KH VZHDULQJ LQ DW WKH FRPPHQFHPHQW RI WKH SHUSHWXDWLRQ SURFHHGLQJV RQ 0DUFK RI WZR QHZO\
DSSRLQWHGPHPEHUV
7KH ZLWKGUDZDO RQ 0DUFK RI WKH FKDUJHV DJDLQVW +XN &RPPDQGHUV 0HORG\ DQG 3XVD ZKR ZHUH
RULJLQDOO\QDPHGDVFRDFFXVHGSULQFLSDOVLQWKHIRXUVXEYHUVLRQFKDUJHVDQGWKHLUXWLOL]DWLRQDVVWDWHZLWQHVVHV
ZKLFK DFFRUGLQJ WR WKH FRPPLVVLRQ
V ODZ PHPEHU DXWRPDWLFDOO\ WDNHV HIIHFW 7KH PLOLWDU\ FRPPLVVLRQ FDQQRW
SDVVXSRQVXFKZLWKGUDZDOLQFRQWUDVWWRWKHSURFHGXUHLQWKHFLYLOLDQFRXUWVZKHUHWKHGLVFKDUJHRIDFFXVHGSHUVRQV
WR EH VWDWH ZLWQHVVHV PXVW PHHW FHUWDLQ UHTXLUHPHQWV LQ WKH LQWHUHVW RI WUXWK DQG MXVWLFH HJ WKDW WKH GHIHQGDQW WR EH
GLVFKDUJHGGRHVQRWDSSHDUWREHWKHPRVWJXLOW\DQGKDVQRWDWDQ\WLPHEHHQFRQYLFWHGRIDQ\RIIHQVHLQYROYLQJPRUDO
WXUSLWXGHDVGHWHUPLQHGLQWKHMXGJPHQWRIWKHFRXUWDQG
7KH PLOLWDU\ SURVHFXWRU GHVLJQDWHG DV WULDO FRXQVHO DFWV LQ KLV RZQ GHVFULSWLRQ DV D
*ORULILHG &KLPR\
RI WKH
0LOLWDU\ &RPPLVVLRQ +H DFWV QRW RQO\ DV 3URVHFXWRU RI 0LOLWDU\ &RPPLVVLRQ 1R EXW KH DFWV DV D JHQHUDO
)$&72780RUD0$1)5,'$<RIWKLV0LOLWDU\&RPPLVVLRQDQGKHSUHSDUHVWKHUHFRUGRIWKHWULDO
$VIDUDVLVJHQHUDOO\NQRZQWKHPLOLWDU\FRPPLVVLRQDWWKHFRQFOXVLRQRIWKHWULDOWDNHVDVHFUHWZULWWHQEDOORWZLWK
DW OHDVW WZRWKLUGV RI WKH PHPEHUV SUHVHQW WR DUULYH DW LWV VXPPDU\ ILQGLQJV RI *XLOW\ RU 1RW *XLOW\ ZLWKRXW
HQWHULQJDZULWWHQGHFLVLRQZKLFKVKDOOFOHDUO\DQGGLVWLQFWO\VWDWHWKHIDFWVDQGWKHODZRQZKLFKLWLVEDVHGDVLV
PDQGDWRULO\UHTXLUHGE\WKH&RQVWLWXWLRQRIHYHU\GHFLVLRQRIDFLYLOFRXUWRIUHFRUG
7KHWUDQVFHQGHQWDOFRQVWLWXWLRQDOLVVXHVLQYROYHGLQWKHFDVHDWEDUZKLFKWKHPDMRULW\KDVUHVROYHGWRGHFLGH
RQ WKH PHULWV GHVSLWH SHWLWLRQHU
V ZLWKGUDZDO PRWLRQ FDOO IRU DGMXGLFDWLRQ RQ WKH EDVLV RI HQVKULQHG SULQFLSOHV RI
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FRQVWLWXWLRQDOLVP DQG WKH UXOH RI ODZ DV XQHTXLYRFDEO\ HVSRXVHG E\ WKH 3UHVLGHQW KLPVHOI 7KH FDVH DW EDU
DVVHUWVWKHULJKWRIFLYLOLDQVWRWKHMXGLFLDOSURFHVVRIFLYLOLDQWULDOVE\WKHUHJXODUFLYLOFRXUWVSDUWLFXODUO\IRUSUH
PDUWLDO ODZ RIIHQVHV DV DJDLQVW WKH H[HFXWLYH SURFHVV RI WULDO E\ PLOLWDU\ WULEXQDOV DQG KLQJHV RQ WKLV &RXUW
V
XSKROGLQJ WKH SULQFLSOH WKDW WKH LQGLYLGXDO LQ WKH DEVHQFH RI RYHUSRZHULQJ QHFHVVLW\ RU SXEOLF GDQJHU PXVW EH
DFFRUGHG KLV FRQVWLWXWLRQDO ULJKWV DV JXDUDQWHHG E\ WKH %LOO RI 5LJKWV HYHQ LQ D VWDWH RI PDUWLDO ODZ $ FRUROODU\
SULQFLSOH ZRXOG EH WKDW WKH FRQWLQXDWLRQ RI PDUWLDO ODZ IRU LQVWLWXWLRQDOL]DWLRQ RI UHIRUPV LV QRW LQFRPSDWLEOH ZLWK
UHFRJQL]LQJWKHIXQGDPHQWDOOLEHUWLHVJUDQWHGLQWKH%LOORI5LJKWV
7KH%LOORI5LJKWVRIWKH&RQVWLWXWLRQVSHFLILHVWKHSRZHUVWKDWKDYHEHHQZLWKKHOGIURPWKHJRYHUQPHQWDQGDUH
UHVHUYHG WR WKH SHRSOH %XW WKH IUHHGRP JXDUDQWHHG E\ LW DJDLQVW WKH RYHUZKHOPLQJ SRZHU RI WKH 6WDWH ZRXOG EH
PHDQLQJOHVVDQGRIQRXVHXQOHVVFLWL]HQVFRXOGYLQGLFDWHDQGHQIRUFHWKHPDJDLQVWWKHJRYHUQPHQWRIILFLDOVDQGDJHQFLHV
E\SURSHUSURFHGXUHVLQWKHFRXUWV$VKHOGE\WKH&RXUWLQ*DUFLDYV0DFDUDLJ,QDV\VWHPOLNHRXUVHYHU\H[HUFLVHRI
JRYHUQPHQWDOFRPSHWHQFHZKHWKHUFRPLQJIURPWKH3UHVLGHQWRUIURPWKHORZHVWRIILFLDOPD\EHFKDOOHQJHGLQFRXUWLQDQ
DSSURSULDWHOHJDO
SURFHHGLQJ
$V ZDV VWUHVVHG E\ WKH ODWH &KLHI -XVWLFH 6WRQH LQ 'XQFDQ VXSUD H[HFXWLYH DFWLRQ LV QRW SURRI RI LWV RZQ
QHFHVVLW\DQGWKHPLOLWDU\
VMXGJPHQWKHUHLVQRWFRQFOXVLYHWKDWHYHU\DFWLRQWDNHQSXUVXDQWWRWKHGHFODUDWLRQRI
PDUWLDOODZZDVMXVWLILHGE\WKHH[LJHQF\,QWKHVXEVWLWXWLRQRIPDUWLDOODZFRQWUROVIRUWKHRUGLQDU\FLYLOSURFHVVHV
ZKDWDUHWKHDOORZDEOHOLPLWVRIPLOLWDU\GLVFUHWLRQDQGZKHWKHURUQRWWKH\KDYHEHHQRYHUVWHSSHGLQDSDUWLFXODU
FDVHDUHMXGLFLDOTXHVWLRQV
6WHUOLQJY&RQVWDQWLQVXSUD86/HG6&W
7KH &RXUW
V MXGJPHQW DW EDU LV WKHUHIRUH RI WKH XWPRVW LPSRUWDQFH VLQFH XQGHU $UWLFOH &LYLO &RGH -XGLFLDO
GHFLVLRQV DSSO\LQJ RU LQWHUSUHWLQJ WKH ODZV RU WKH &RQVWLWXWLRQ VKDOO IRUP D SDUW RI WKH OHJDO V\VWHP RI WKH
3KLOLSSLQHV$VGHILQHGE\.QRYLW]WKH&RQVWLWXWLRQDQGWKHODZVHQDFWHGE\WKHOHJLVODWXUHVDQGWKHMXGJPHQWV
DQGRUGHUVRIWKHFRXUWVFRQVWLWXWHWKH5XOHRI/DZ
7KH 3UHVLGHQW KDV RIWHQ GHFODUHG WKDW 7KH 1HZ 6RFLHW\ ORRNV WR LQGLYLGXDO ULJKWV DV D PDWWHU RI SDUDPRXQW
FRQFHUQ UHPRYHG IURP WKH YLFLVVLWXGHV RI SROLWLFDO FRQWURYHUV\ DQG EH\RQG WKH UHDFK RI PDMRULWLHV :H DUH
SOHGJHGWRXSKROGWKH%LOORI5LJKWVDQGDVWKHH[LJHQFLHVPD\VRDOORZZHDUHGHWHUPLQHGWKDWHDFKSURYLVLRQ
VKDOOEHH[HFXWHGWRWKHIXOOHVW
:KLOHVWUHVVLQJWKDWPDUWLDOODZLVDWHPSRUDU\FRQVWLWXWLRQDOH[SHGLHQWRIVDIHJXDUGLQJWKH5HSXEOLF DQG D
WHPSRUDU\SKDVHLQWKHGHYHORSPHQWRIRXU
FRXQWU\ WKH 3UHVLGHQW KDV WKXV FDOOHG IRU WKH &RQVWLWXWLRQ WR UHPDLQ ILUP DQG VWDEOH KDV UHMHFWHG WKH H[HUFLVH RI
SRZHU WKDW FDQ EH LGHQWLILHG PHUHO\ ZLWK D UHYROXWLRQDU\ JRYHUQPHQW WKDW PDNHV LWV RZQ ODZ DQG KDV FDOOHG RQ HYHU\
FLWL]HQWRUHPDLQVWHDGIDVWRQWKHUXOHRIODZDQGWKH&RQVWLWXWLRQDVIROORZV Wr x
vK T Z k
:KRHYHUKHPD\EHDQGZKDWHYHUSRVLWLRQKHPD\KDSSHQWRKDYHZKHWKHULQJRYHUQPHQWRU
RXWVLGH JRYHUQPHQW LW LV DEVROXWHO\ QHFHVVDU\ QRZ WKDW ZH ORRN VROHPQO\ DQG SHUFHSWLYHO\ LQWR WKH
&RQVWLWXWLRQDQGWU\WRGLVFRYHUIRURXUVHOYHVZKDWRXUUROHLVLQWKHVXFFHVVIXOLPSOHPHQWDWLRQRIWKDW
&RQVWLWXWLRQ:LWKWKLVWKRXJKWWKHUHIRUHZHFDQDJUHHRQRQHWKLQJDQGWKDWLV/HWDOORIXVDJHOHW
DOORIXVWKHQSDVVDZD\DVDSDFHLQWKHGHYHORSPHQWRIRXUFRXQWU\EXWOHWWKH&RQVWLWXWLRQUHPDLQ
ILUP DQG VWDEOH DQG OHW LQVWLWXWLRQV JURZ LQ VWUHQJWK IURP GD\ WR GD\ IURP DFKLHYHPHQW WR
DFKLHYHPHQWDQGVRORQJDVWKDW&RQVWLWXWLRQVWDQGVZKRHYHUPD\WKHPDQLQSRZHUEHZKDWHYHU
PD\KLVSXUSRVHEHWKDW&RQVWLWXWLRQZLOOJXLGHWKHSHRSOHDQGQRPDQKRZHYHUSRZHUIXOKHPD\EH
ZLOOGDUHWRGHVWUR\DQGUHFNWKHIRXQGDWLRQRIVXFKD&RQVWLWXWLRQ
7KHVHDUHWKHUHDVRQVZK\,SHUVRQDOO\KDYLQJSURFODLPHGPDUWLDOODZKDYLQJEHHQRIWHQLQGXFHGWR
H[HUFLVH SRZHU WKDW FDQ EH LGHQWLILHG PHUHO\ ZLWK D UHYROXWLRQDU\ JRYHUQPHQW KDYH UHPDLQHG
VWHDGIDVWRQWKHUXOHRIODZDQGWKH&RQVWLWXWLRQ,ZRXOGUHFRPPHQGWKDWLIWKH3UHVLGHQWFDQGRWKLV
LWWKH3UHVLGHQWFDQUHVWUDLQWKHH[HUFLVHRIKLVRZQSRZHUVHYHU\FLWL]HQIRUKLVSDUWVKRXOGQRWILQGLW
DEXUGHQWRSDUWLFLSDWHLQWKLVDFWRIVHOIGHQLDODQGVHOIDEQHJDWLRQDVDQHDUQHVWWRWKHIXWXUHRIRXU
UDFHDQGRXUSHRSOH
7KLV LV EXW WR VWDWH WKDW QR RQH VKRXOG EH DERYH RU EHORZ WKH ODZ DQG WR UHLWHUDWH WKH FODVVLF GLFWXP WKDW 7KH
&RQVWLWXWLRQ LV D ODZ IRU UXOHUV DQG SHRSOH HTXDOO\ LQ ZDU DQG LQ SHDFH DQG FRYHUV ZLWK WKH VKLHOG RI LWV
SURWHFWLRQ DOO FODVVHV RI PHQ DW DOO WLPHV DQG XQGHU DOO FLUFXPVWDQFHV ,Q WKH UHODWLYHO\ UHFHQW FDVH RI 3KLO
%ORRPLQJ 0LOOV (PSOR\HHV
2UJDQL]DWLRQ YV 3KLO %ORRPLQJ 0LOOV 0U -XVWLFH 0DNDVLDU UHVWDWHG IRU WKH &RXUW FHUWDLQ
EDVLFFRQFHSWVDQGSULQFLSOHVRIFRQVWLWXWLRQDOLVPZKLFKEHDUUHSURGXFLQJDVWKH\FRQFHUQWKHLVVXHVDWEDUDVIROORZV Wr x
vK T Z k
,Q D GHPRFUDF\ WKH SUHVHUYDWLRQ DQG HQKDQFHPHQW RI WKH GLJQLW\ DQG ZRUWK RI WKH KXPDQ
SHUVRQDOLW\LVWKHFHQWUDOFRUHDVZHOODVWKHFDUGLQDODUWLFOHRIIDLWKRIRXUFLYLOL]DWLRQ7KHLQYLRODEOH
FKDUDFWHURIDPDQDVDQLQGLYLGXDOPXVWEHSURWHFWHGWRWKHODUJHVWSRVVLEOHH[WHQWLQKLVWKRXJKWV
DQGLQKLVEHOLHIVDVWKHFLWDGHORIKLVSHUVRQ
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
7KH%LOORI5LJKWVLVGHVLJQHGWRSUHVHUYHWKHLGHDOVRIOLEHUW\HTXDOLW\DQGVHFXULW\DJDLQVWWKH
DVVDXOWV RI RSSRUWXQLVP WKH H[SHGLHQF\ RI WKH SDVVLQJ KRXU WKH HURVLRQ RI VPDOO HQFURDFKPHQWV
DQGWKHVFRUQDQGGHULVLRQRIWKRVHZKRKDYHQRSDWLHQFHZLWKJHQHUDOSULQFLSOHV
,Q WKH SLWK\ ODQJXDJH RI 0U -XVWLFH 5REHUW -DFNVRQ WKH SXUSRVH RI WKH %LOO RI 5LJKWV LV WR ZLWKGUDZ FHUWDLQ
VXEMHFWV IURP WKH YLFLVVLWXGHV RI SROLWLFDO FRQWURYHUV\ WR SODFH WKHP EH\RQG WKH UHDFK RI PDMRULWLHV DQG
RIILFLDOVDQGWRHVWDEOLVKWKHPDVOHJDOSULQFLSOHVWREHLPSOLHGE\WKHFRXUWV2QH
VULJKWVWROLIHOLEHUW\DQG
SURSHUW\ WR IUHH VSHHFK RU IUHH SUHVV IUHHGRP RI ZRUVKLS DQG DVVHPEO\ DQG RWKHU IXQGDPHQWDO ULJKWV PD\
QRW EH VXEPLWWHG WR D YRWH WKH\ GHSHQG RQ WKH RXWFRPH RI QR HOHFWLRQV /DVNL SURFODLPHG WKDW WKH
KDSSLQHVVRIWKHLQGLYLGXDOQRWWKHZHOOEHLQJRIWKH6WDWHZDVWKHFULWHULRQE\ZKLFKLWVEHKDYLRXUZDVWREH
MXGJHG+LVLQWHUHVWVQRWLWVSRZHUVHWWKHOLPLWVWRWKHDXWKRULW\LWZDVHQWLWOHGWRH[HUFLVH
[[[[[[[[[
0U-XVWLFH'RXJODVDUWLFXODWHGWKLVSRLQWHGUHPLQGHU
7KHFKDOOHQJHWRRXUOLEHUWLHVFRPHVIUHTXHQWO\QRWIURPWKRVHZKRFRQVFLRXVO\VHHNWRGHVWUR\RXU
V\VWHPRIJRYHUQPHQWEXWIURPPHQRIJRRGZLOOJRRGPHQZKRDOORZWKHLUSURSHUFRQFHUQVWREOLQG
WKHPWRWKHIDFWWKDWZKDWWKH\SURSRVHWRDFFRPSOLVKLQYROYHVDQLPSDLUPHQWRIOLEHUW\
7KH PRWLYHV RI WKHVH PHQ DUH RIWHQ FRPPHQGDEOH :KDW ZH PXVW UHPHPEHU KRZHYHU LV WKDW
SUHVHUYDWLRQ RI OLEHUWLHV GRHV QRW GHSHQG RQ PRWLYH $ VXSSUHVVLRQ RI OLEHUW\ KDV WKH VDPH HIIHFW
ZKHWKHU WKH VXSSUHVVRU EH D UHIRUPHU RU DQ RXWODZ 7KH RQO\ SURWHFWLRQ DJDLQVW PLVJXLGHG ]HDO LV
FRQVWDQWDOHUWQHVVRIWKHLQIUDFWLRQVRIWKHJXDUDQWHHVRIOLEHUW\FRQWDLQHGLQRXU&RQVWLWXWLRQ(DFK
VXUUHQGHU RI OLEHUW\ WR WKH GHPDQGV RI WKH PRPHQW PDNHV HDVLHU DQRWKHU ODUJHU VXUUHQGHU 7KH
EDWWOHRYHUWKH%LOORI5LJKWVLVDQHYHULVDQHYHUHQGLQJRQH
7KHOLEHUWLHVRIDQ\SHUVRQDUHWKHOLEHUWLHVRIDOORIXV
,QVKRUWWKHOLEHUWLHVRIQRQHDUHVDIHXQOHVVWKHOLEHUWLHVRIDOODUHSURWHFWHG
%XW HYHQ LI ZH VKRXOG VHQVH QR GDQJHU WR RXU RZQ OLEHUWLHV HYHQ LI ZH IHHO VHFXUH EHFDXVH ZH
EHORQJWRDJURXSWKDWLVLPSRUWDQWDQGUHVSHFWHGZHPXVWUHFRJQL]HWKDWRXU%LOORI5LJKWVLVDFRGH
RIIDLUSOD\IRUWKHOHVVIRUWXQDWHWKDWZHLQDOOKRQRUDQGJRRGFRQVFLHQFHPXVWREVHUYH
,IDVVWUHVVHGDERYHXQLIRUPO\E\WKH3UHVLGHQWDQGWKHFLWHGOHJDODXWKRULWLHVVXSUDWKHIUHHGRPVJXDUDQWHHGE\
WKH%LOORI5LJKWVDUHUHPRYHGIURPWKHYLFLVVLWXGHVRISROLWLFDOFRQWURYHUV\DQGEH\RQGWKHUHDFKRIPDMRULWLHV
DQGRIILFLDOVDQGDUHHVWDEOLVKHGDVOHJDOSULQFLSOHVWREHDSSOLHGE\WKHFRXUWVDQGPD\QRWEHVXEPLWWHGWRD
YRWH WKH\ GHSHQG RQ WKH RXWFRPH RI QR HOHFWLRQV WKHQ LW LV UHVSHFWIXOO\ VXEPLWWHG WKDW WKH SULQFLSOHV RI
IXQGDPHQWDO SXEOLF SROLF\ HQVKULQHG LQ WKH %LOO RI 5LJKWV WKDW JXDUDQWHH WR HYHU\ LQGLYLGXDO GXH SURFHVV DQG IDLU
SOD\UHJDUGOHVVRIZKRKHLVDQGRIZKRHYHUPD\EHLQSRZHUFDOOIRUWKHJUDQWLQJRIWKHSHWLWLRQDQGDWWKHOHDVW
IRU WKH UHLQYHVWLJDWLRQ RI WKH FKDUJHV DJDLQVW SHWLWLRQHU ZLWK XWPRVW IDLUQHVV LPSDUWLDOLW\ DQG REMHFWLYLW\ DV
GLUHFWHGLQ$GPLQLVWUDWLYH2UGHU1RLWVHOI
0XxR]3DOPD-FRQFXU l Z S K w x s W
%$55('2-FRQFXUULQJ
,FRQFXULQWKHPDLQRSLQLRQVRYHU\DEO\SHQQHGIRUWKH&RXUWE\RXUGLVWLQJXLVKHGFROOHDJXH0U-XVWLFH$QWRQLR
, DP ZULWLQJ WKLV VHSDUDWH RSLQLRQ QRW ZLWK LQWHQW WR XQQHFHVVDULO\ OHQG IRUFH WR WKH FRJHQW DQG FRPSHOOLQJ
FRQVLGHUDWLRQVH[SRXQGHGWKHUHLQEXWRQO\WRDUWLFXODWHDIHZWKRXJKWV,HQWHUWDLQUHODWLYHWRFHUWDLQDVSHFWVRIWKLV
FDVHZKLFKKDYHDGGLWLRQDOO\LPSHOOHGPHWRRYHUUXOHWKHFRQWHQWLRQVRISHWLWLRQHURWKHUWKDQKLVLQYRFDWLRQRIKLV
ULJKWWRZDLYHKLVSUHVHQFHDWWKHSURFHHGLQJVEHLQJKHOGDJDLQVWKLP
$WWKHRXWVHW,ZRXOGOLNHWRXQGHUVFRUHWKHIDFWWKDWWKLVLVWKHILUVWGHFLVLRQRIWKLV&RXUWUHJDUGLQJPDMRUPDUWLDO
ODZ LVVXHV ZKHUHLQ WKH PDLQ RSLQLRQ FDUULHV WKH XQTXDOLILHG FRQFXUUHQFH RI WKH UHTXLUHG QXPEHU RI MXVWLFHV IRU
GRFWULQDOSXUSRVHV6LQFH,KDYHKHUHWRIRUHUHJUHWWHG2XUIDLOXUHWRDJUHHRQDFRPPRQRSLQLRQWKDWZRXOGQRWEH
VXEMHFW WR YDU\LQJ FRQVWUXFWLRQV LQFOXGLQJ GLVWRUWHG DQG VHOIPRWLYDWHG RQHV ZKLFK FRXOG EH SHGGOHG DURXQG IRU
SURSDJDQGDSXUSRVHVE\WKRVHZKRIRUUHDVRQVRIWKHLURZQFDQQRWVHHDQ\WLPHULJKWLQWKHSUHVHQWRUGHULWLVWR
PH D FDXVH RI JHQXLQH VDWLVIDFWLRQ WKDW DW ORQJ ODVW WKH &RXUW KDV EHHQ DEOH WR UHQGHU WKH LQVWDQW RSLQLRQ DQG
MXGJPHQW WRXFKLQJ RQ LPSRUWDQW DQG EDVLF FRQVWLWXWLRQDO DQG OHJDO IHDWXUHV RI WKH SUHYDLOLQJ PDUWLDO ODZ
DGPLQLVWUDWLRQLQDPDQQHUWKDWOHDYHVQRURRPIRUGRXEWDVWRWKHPHDQLQJDQGVFRSHRI2XUSURQRXQFHPHQWV
7REHPRUHVSHFLILFWKHPDLQRSLQLRQLQWKLVFDVHDQGWKHUXOLQJVWKHUHLQFRQWDLQHGRZQWKHIXOOVXSSRUWRIDWOHDVW
HLJKWPHPEHUVRIWKH&RXUWZLWKRXWFRXQWLQJZKDW,FRQVLGHUWREHWKHFORVHHQRXJKWRFRQFXUUHQFHSRVWXUHRI
0U-XVWLFH)HUQDQGRZKLFKEHWUD\VQROLWWOHHIIRUWWRUHFRQFLOHORQJFKHULVKHGWUDGLWLRQDOYLHZVZLWKWKHLQQRYDWLYH
DQG SURJUHVVLYH MXULGLFDO FRQFHSWV HPHUJLQJ IURP WKH LPSHUDWLYHV RI WKH OHJDO FKDUDFWHU RI WKH SUHVHQWO\
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
HVWDEOLVKHG JRYHUQPHQW ,Q WKH OLJKW RI WKH FRQVWLWXWLRQDO UHTXLUHPHQW RI WHQ YRWHV IRU D GHFODUDWLRQ RI
LQYDOLGLW\RIDQ\RUGHURIWKH3UHVLGHQWHLJKWQHJDWLYHYRWHVLVPRUHWKDQLPSUHVVLYH$QGFHUWDLQO\DOOWKHUXOLQJV
LQ WKH PDLQ RSLQLRQ KDYLQJ DV WKH\ GR KDYH WKH VXSSRUW RI WKRVH HLJKW YRWHV FRQVWLWXWH DXWKRULWDWLYH GRFWULQHV
DJDLQVWZKLFKWKHFRQWUDU\YLHZVRIDQ\PHPEHURIWKHEDUVKRXOGKDYHQRPRUHWKDQDFDGHPLFYDOXH$WWKHVH
WLPHVZKHQLWLVEHVWWKDWWKHOHJDOIRXQGDWLRQVRIWKHH[LVWLQJJRYHUQPHQWVKRXOGEHVHFXUHO\VROLGLILHGWREHWWHU
DQGIDVWHUDFKLHYHWKHHQGVIRUZKLFKPDUWLDOODZKDVEHHQSURFODLPHGWKHSURQRXQFHPHQWVRIWKH&RXUWLQWKLV
FDVHVKRXOGSXWDQHQGWRDQHIIRUWWRGLVFUHGLWWKHDFWLRQVRIWKLV*RYHUQPHQWDVEHLQJIRXQGHGRQO\RQPLJKW
UDWKHUWKDQULJKW,QGHHGP\IDLWKLVWKDWWKHUXOHRIODZREWDLQVWRGD\DVLWKDVDOZD\VREWDLQHGEHIRUHDULGGXH
FRQVLGHUDWLRQDQGFRUUHVSRQGLQJDFFRPPRGDWLRQDFFRUGHGWRWKHUHTXLUHPHQWVRIWKHHPHUJHQF\FRQIURQWLQJWKH
QDWLRQGRQRWGHWUDFWLQDQ\ZD\IURPWKHHIIHFWLYHVXSUHPDF\RIWKHODZ
3HWLWLRQHUPRWLRQWRZLWKGUDZGHQLHG
,WLVDVHWWOHGUXOHFRQVLVWHQWZLWKWKHILWWLQJGLJQLW\RIMXGLFLDOSURFHHGLQJVWKDWDIWHUDFDVHKDVEHHQVXEPLWWHGIRU
GHFLVLRQ ZLWKGUDZDO RI WKH VDPH IURP WKH MXULVGLFWLRQ RI WKH FRXUW LV D PDWWHU DGGUHVVHG WR LWV VRXQG GLVFUHWLRQ
DQGLVIDUIURPEHLQJDPDWWHURIULJKWRQWKHSDUWRIDQ\RIWKHSDUWLHV)RUREYLRXVUHDVRQVDSDUW\VKRXOGQRWEH
DOORZHGWRSURYRNHLVVXHVRIIDUUHDFKLQJLQWHUHVWDQGLPSRUWDQFHDQGKXUODFFXVDWLRQVDJDLQVWWKHDFWXDWLRQVRI
WKHDGYHUVHSDUW\WKHUHE\FUHDWLQJGRXEWVLQWKHSXEOLFPLQGDVWRWKHYDOLGLW\RIVDLGDFWXDWLRQVDQGWKHUHDIWHU
XSRQ EHLQJ FRQIURQWHG ZLWK WKH GHIHQVHV RI KLV RSSRQHQW DQG VHQVLQJ SHUKDSV SUREDEOH GHIHDW WR MXVW WDNH D
UHWUHDW ZLWKRXW H[SUHVVO\ DGPLWWLQJ WKH LQILUPLW\ RI KLV SRVLWLRQ WKHUHE\ PDNLQJ VXUH WKDW KH FDQ ZLWK UHODWLYH
LPSXQLW\FRQWLQXHZLWKKLVFULWLFDODWWLWXGHLQWKHPDQQHUVXLWDEOHWRKLVFRQYHQLHQFHDQGSXUSRVHV2EVHUYDQFHRI
WKHODXGDEOHSROLF\RIWHUPLQDWLQJOLWLJDWLRQVDWWKHHDUOLHVWRSSRUWXQLW\PD\QRWEHLQYRNHGZKHQWKHHYLGHQWUHVXOW
LVGHWULPHQWWRWKHPRUHSDUDPRXQWREMHFWLYHRIKDYLQJDGHILQLWHUXOLQJE\WKH6XSUHPH&RXUWDVWRZKDWWKHODZ
LVLQUHJDUGWRWKHPDWWHUVRIYLWDOSXEOLFLQWHUHVWDFWXDOO\DQGSURSHUO\EURXJKWWRLWIRUDGMXGLFDWLRQ
%XWWKHLPSHUDWLYHQHHGWRVHWWOHWKHLPSRUWDQWLVVXHVUDLVHGLQWKLVFDVHLVQRWWKHRQO\UHDVRQ,KDYHIRUYRWLQJWR
GHQ\SHWLWLRQHU
VPRWLRQ:KHQSHWLWLRQHUZDVUHTXLUHGE\WKH&RXUWWRDPSOLI\KLVLQLWLDOXQUHDVRQHGUHTXHVWWREH
DOORZHGWRZLWKGUDZDOOKLVSHWLWLRQVPRWLRQVDQGRWKHULQFLGHQWVKHUHLQKLVFRXQVHOVXEPLWWHGDOHWWHUSXUSRUWHGO\
FRPLQJIURPSHWLWLRQHUZKHUHLQKHYHKHPHQWO\FDVWDVSHUWLRQVDJDLQVWWKLV&RXUWDOOHJLQJWKDWKHGRHVQRWZDQW
DQ\WKLQJ IURP WKH 6XSUHPH &RXUW DQG WKDW WKH ZKROH WKLQJ KDG EHHQ GHVLJQHG FRPSRVHG DQG RUFKHVWUDWHG LQ
0DODFDxDQJ DQG WKDW KLV OHJDO EDWWOHV LQ WKH 6XSUHPH &RXUW DUH QRZ RYHU 0U 0DUFRV LV WKH VLQJOH JHQLXV
FRPSRVLQJDQGGLUHFWLQJDOOWKHSURFHHGLQJVZKHWKHULQWKHPLOLWDU\WULEXQDORULQWKHFLYLOFRXUWVDQGHYHQJRLQJ
DVIDUDVUHIHUULQJWRWKH6XSUHPH&RXUWDVDQREVWDFOH
,ZRXOGOLNHWRVWDWHKHUHHPSKDWLFDOO\WKDWSHWLWLRQHU
VDSSUHKHQVLRQVDERXWWKHGDQJHUVWRWKHLQGHSHQGHQFHRI
WKHMXGLFLDU\RIWKH3KLOLSSLQHVDWSUHVHQWSDUWLFXODUO\WKH6XSUHPH&RXUWLVQRWKLQJPRUHWKDQDQDSULRULRSLQLRQ
DQGLVQRWDQGFDQQRWEHVXSSRUWHGE\IDFWV$IWHUDOOWKH&RXUWGRHVQRWKDYHWRQHFHVVDULO\DJUHHZLWKHYHU\RQH
ZKRIHHOVWKDWFHUWDLQDFWVRIWKH*RYHUQPHQWDUHLOOHJDORUXQFRQVWLWXWLRQDO6XUHO\DSURSHQVLW\WRRYHUUXOHWKH
RWKHUGHSDUWPHQWVRIWKH*RYHUQPHQWLVQRWWKHWUXHPDUNRIWKHLQGHSHQGHQFHRIWKHMXGLFLDOEUDQFK,IVRIDUWKH
6XSUHPH &RXUW KDV QRW \HW GHFODUHG DQ\ LPSXJQHG DFWV RI WKH 3UHVLGHQW RU WKH PDUWLDO ODZ JRYHUQPHQW
XQFRQVWLWXWLRQDOLWLVQRWEHFDXVHWKH&RXUWLVVXEVHUYLHQWWRWKH3UHVLGHQWLQDQ\ZD\EXWVLPSO\EHFDXVHLQWKH
KRQHVWFRQYLFWLRQRILWVPHPEHUVWKHSURSHUFDVHIRUVXFKDGHFODUDWLRQKDVQRWFRPH7KDWWKH&RXUWFDQDQG
ZLOO VWULNH GRZQ DFWV RI WKH 3UHVLGHQW LQ WKH DSSURSULDWH LQVWDQFHV WKHUH VKRXOG EH QR GRXEW ZKDWVRHYHU 7KH
SHRSOHFDQUHVWDVVXUHGWKDWZKHQWKHSURSHURFFDVLRQVDULVHWKHMXVWLFHVLQGLYLGXDOO\DQGFROOHFWLYHO\ZLOOQRWEH
IRXQGZDQWLQJLQZLVGRPDQGFRXUDJHWRDFWDFFRUGLQJO\UHJDUGOHVVRIZKDWPLJKWEHWKHYLHZVDQGZLVKHVRIWKH
([HFXWLYHDQGRUDQ\RWKHUGHSDUWPHQWRIWKHJRYHUQPHQW
$W WKLV SRLQW LW PD\ QRW EH DPLVV WR VD\ D IHZ ZRUGV UHVSHFWLQJ SHWLWLRQHU
V GHFLVLRQ WR UHVRUW WR ZKDW LV EHLQJ
UHIHUUHGWRDVDKXQJHUVWULNH
$FFRUGLQJWRKLVOHWWHUDIRUHPHQWLRQHGWKHLQLWLDOUHDVRQIRUVXFKDVWHSZDVWRTXRWHKLVRZQZRUGVWRSURWHVW
DJDLQVWDSURFHGXUHLQWHQGHGWRKXPLOLDWHDQGGHKXPDQL]HPHFRQVLGHULQJWKDWDOOWKH\ZDQWHGZDVIRUPHWREH
LGHQWLILHG DV D FRPPRQ FULPLQDO DQG QRW DV D SROLWLFDO ULYDO , DOVR VDLG WKDW P\ KXQJHU VWULNH ZDV QRW RQO\ IRU
P\VHOI EXW RQ EHKDOI RI PDQ\ RWKHU YLFWLPV RI WRGD\
V RSSUHVVLRQ DQG LQMXVWLFHV /DWHU KRZHYHU WKH FDXVHV
WKHUHRIZHUHEURDGHQHGE\KLPWKXV Wr x
vK T Z k
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
'HVSLWH P\ KXQJHU VWULNH RU SUREDEO\ EHFDXVH RI LW , VHH ZLWK XQPLVWDNDEOH FODULW\ WKDW P\ OHJDO
EDWWOHVLQWKH6XSUHPH&RXUWDUHQRZRYHU0U0DUFRVLVWKHVLQJOHJHQLXVFRPSRVLQJDQGGLUHFWLQJ
DOOWKHSURFHHGLQJVZKHWKHULQWKHPLOLWDU\WULEXQDORULQWKHFLYLOFRXUWV7KLVLVWKHHYLORIRQHPDQ
UXOH DW LWV YHU\ ZRUVW +H KDV GHVWUR\HG WKH LQGHSHQGHQFH RI WKH FLYLO FRXUWV DEROLVKHG WKH
OHJLVODWXUH FRQWUROOHG WKH PDVV PHGLD FXUWDLOHG RXU FKHULVKHG OLEHUWLHV ZLWK WKH EDFNLQJ RI WKH
PLOLWDU\ZKLFKLURQLFDOO\H[LVWV
IRUWKHJRRGRIWKHSHRSOH
:LWKRXWWKH6XSUHPH&RXUWDVDQREVWDFOH,KDYHGHFLGHGWRJRRQP\KXQJHUVWULNHDQGSODFHP\
IDWH DQG P\ OLIH VTXDUHO\ LQ WKH KDQGV RI P\ DFFXVHU SURVHFXWRU DQG MXGJH 0U 0DUFRV 7KXV WKH
SODLQQDNHGWUXWKZLOOEHPDGHFOHDUWRRXUSHRSOHDQGWRWKHUHVWRIWKHZRUOG
$V,VDLGP\KXQJHUVWULNHLVQRWIRUP\VHOIDORQHEXWIRUWKHPDQ\WKRXVDQGVRI)LOLSLQRVZKRDUH
KHOSOHVV YLFWLPV RI WKH RSSUHVVLRQ DQG LQMXVWLFHV RI WKH VRFDOOHG 1HZ 6RFLHW\ 7KH PHDQLQJ DQG
WKUXVW RI P\ VWUXJJOH DQG VDFULILFH WUDQVFHQG WKH OLPLWHG TXHVWLRQ RI DEVHQFH RU SUHVHQFH LQ WKH
SURFHHGLQJV EHIRUH WKH PLOLWDU\ WULEXQDO , KDYH WKHUHIRUH VROHPQO\ YRZHG WR FRQWLQXH P\ KXQJHU
VWULNHDVDV\PERORIRXUSHRSOH
VILUPSURWHVWDJDLQVW Wr x
vK T Z k
7KH WULDO RI FLYLOLDQV EHIRUH PLOLWDU\ WULEXQDOV SDUWLFXODUO\ IRU RIIHQVHV DOOHJHGO\
FRPPLWWHGE\WKHPEHIRUHPDUWLDOODZ
WKH ODFN RI MXGLFLDO LQGHSHQGHQFH 7ULDOV E\ FLYLO FRXUWV ZRXOG VWLOO EH D WUDYHVW\ RI
MXVWLFH HVSHFLDOO\ LQ FDVHV ZKHUH WKRVH LQ SRZHU WKHLU UHODWLYHV RU DVVRFLDWHV DUH
LQWHUHVWHG ² IRU DV ORQJ DV RXU MXGJHV UHPDLQ FDVXDOV 7KH\ VKRXOG EH JLYHQ
SHUPDQHQWWHQXUHIRUWKHLURZQJRRGDQGIRUWKHEHQHILWRIRXUSHRSOHZKRKDYHDYLWDO
VWDNHLQDVRXQGDGPLQLVWUDWLRQRIMXVWLFH
WKHDEVHQFHRIDJHQXLQHIUHHSUHVV6LQFHPDUWLDOODZZDVSURFODLPHG,KDYHEHHQ
XQIDLUO\ FRQGHPQHG DQG YLOLILHG E\ WKH FRQWUROOHG QHZVSDSHUV DQG WYUDGLR VWDWLRQV ,
NQRZWKHUHDUHPDQ\SHRSOHZKRKDYHEHHQVLPLODUO\SLOORULHG%XWDJHQXLQHIUHHSUHVV
LV HYHQ PRUH LPSRUWDQW IRU WKRVH ZKR DUH LQ SRZHU ,W PD\ IUHH WKHP IURP WKHLU
DUURJDQFHWKHLUSUHMXGLFHVDQGWKHLUSUHWHQVLRQVDQGKHOSWKHPVHHWKHLQMXVWLFHVWKH\
KDYHFRPPLWWHGDJDLQVWWKHLURZQSHRSOH
WKH IXUWKHU FRQWLQXDWLRQ RI PDUWLDO ODZ DQG LWV HYLOV DQG UHSUHVVLRQV $IWHU DOO 0U
0DUFRV KDV DOUHDG\ DQQRXQFHG WR WKH ZRUOG WKDW KH KDG DFWXDOO\ UHPRYHG PDUWLDO ODZ
VLQFH$SULO3HWLWLRQHU$TXLQR
VOHWWHUSS
%H WKDW DV LW PD\ DQ\RQH FDQ HDVLO\ LPDJLQH WKH XQPDQDJHDEOH VLWXDWLRQ DQG MXGLFLDO FKDRV WKDW ZRXOG UHVXOW
VKRXOG:HFUHDWHDSUHFHGHQWZKHUHLQWKH&RXUWVKRXOG\LHOGWRWKHGHPDQGVRIDSHUVRQXQGHUIRUPDOFKDUJHRI
FRPPLWWLQJ DQ RIIHQVH DV RWKHUZLVH KH ZRXOG UHVRUW WR D KXQJHU VWULNH 1RQHWKHOHVV :H ZHUH VRPHKRZ
GLVSRVHG WR OHDQ EDFNZDUGV DQG UXOH LQWHUORFXWRULO\ DV HDUO\ DV :H FRXOG RQ WKH LVVXH DV WR ZKHWKHU RU QRW WKH
UHVSRQGHQW 0LOLWDU\ &RPPLVVLRQ ZDV ULJKW LQ FRPSHOOLQJ SHWLWLRQHU WR DWWHQG WKH SHUSHWXDWLRQ SURFHHGLQJV DQG
WKHUHE\SODFHKLVLQLWLDOFDXVHIRUWKHKXQJHUVWULNHLQLWVWUXHSHUVSHFWLYH%XW2XUHIIRUWVWRWKLVHQGZHUHPHWE\
SHWLWLRQHU
V&KXUFKLOOOLNHUHDFWLRQWKDWZKDW:HFRXOGSRVVLEO\JLYHZDVWRRODWHDQGWRROLWWOHPDQLIHVWHGE\KLV
RQFHPRUHGLVDXWKRUL]LQJKLVODZ\HUVIURPKHQFHIRUWKVSHDNLQJIRUKLPDQGILQDOO\VHHNLQJWKHZLWKGUDZDORIWKLV
FDVH IURP RXU KDQGV ,V WKH &RXUW VXSSRVHG WR H[WHQG WR D SROLWLFDO ULYDO RI WKH 3UHVLGHQW PRUH WKDQ ZKDW WKH
H[LVWLQJODZVSURYLGHIRURWKHUV"
$VD)LOLSLQRP\VHOI,DPUHDG\WRFRQFHGHWKDWSHWLWLRQHULVEHLQJDFWXDWHGE\ZKDWKHKRQHVWO\EHOLHYHVWREHKLV
GXW\WRRXUFRXQWU\DQGSHRSOH+LVDELGLQJOR\DOW\WRKLVFDXVHDQGKLVILUPFRQYLFWLRQWRDWWDLQKLVREMHFWLYHVDUH
WR PH DGPLUDEOH %XW , UHMHFW DQ\ VXJJHVWLRQ WKDW IRU WKH &RXUW WR XSKROG WKH OHJDOLW\ DQG FRQVWLWXWLRQDOLW\ RI WKH
H[LVWLQJ JRYHUQPHQW LV LQLPLFDO WR WKH QDWLRQDO LQWHUHVWV DQG LGHDOV , FDQ VHH WKDW WKH FRQFHSW RI PDUWLDO ODZ
SUHVHQWO\EHLQJHYROYHGKHUHDVZHOODVVRPHIHDWXUHVRILWVLPSOHPHQWDWLRQGRQRWFRQIRUPZLWKFHUWDLQYLHZVRI
WKH$PHULFDQ6XSUHPH&RXUWDQGVRPHDOLHQZULWHUVRQWKHVXEMHFWEXWLVLWLPSHUDWLYHWKDWWKH6XSUHPH&RXUWRI
WKH3KLOLSSLQHVVKRXOGDGKHUHWRWKHGRFWULQHVODLGGRZQE\DOLHQDXWKRULWLHVLQRUGHUWREHULJKW"
,QFLGHQWDOO\LWLVEHFRPLQJLQFUHDVLQJO\HYLGHQWWKDWVRPHUHOLJLRXVTXDUWHUVDVVXFKZRXOGZDQWWKHLULQIOXHQFHIHOW
LQWKHUHVROXWLRQRIWKHOHJDOLVVXHVEHIRUH8V2QHGRHVQRWKDYHWRGLJGHHSLQWRWKHSDJHVRIKLVWRU\WROHDUQ
WKDWQDWLRQVDQGSHRSOHVKDYHDOVRVXIIHUHGZKHUHDQGZKHQWKHUHZDVQRVHSDUDWLRQRIWKHFKXUFKDQGVWDWHDV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
ZKHQ WKH\ ZHUH XQGHU GHVSRWV DQG DXWRFUDWV ,Q DQ\ HYHQW ZKLOH RQH FDQ FRPPLVHUDWH DQG V\PSDWKL]H ZLWK
SHWLWLRQHUIRUWKHSHUVRQDOVXIIHULQJVKHKDVHOHFWHGWRXQGHUJR,FDQQRWFRQYLQFHP\VHOIWKDWWKH\DUHLQDQ\ZD\
FRPSDUDEOHZLWKWKHDJRQLHVRI&KULVWDW&DOYDU\DVVHHPLQJO\,DPLQIRUPHGKDVEHHQVRPHKRZRUVHHPLQJO\
VXJJHVWHG DW D UHOLJLRXV JDWKHULQJ VRPHWLPH DJR RI WKRVH ZKR VKDUH FRQYLFWLRQV ZLWK SHWLWLRQHU :LWKDO , DP
DIUDLGWKDWHYHQWKHPHUHDWWHPSWWRGUDZVXFKDFRPSDULVRQFRXOGEHDVLQRIVDFULOHJHDQGRIKDYLQJVWUDQJH
JRGVEHIRUHRXURQO\+RO\5HGHHPHU
0LOLWDU\WULEXQDOVDQGWULDOVIRUSHUVRQVZKRKDYHFRPPLWWHGRIIHQVHVDJDLQVWWKHREMHFWLYHVRIPDUWLDOODZLVD
QDWXUDODQGORJLFDOFRQFRPLWDQWRIPDUWLDOUXOH
7KHOHJDOLVWLFDQGVFKRODUO\GLVFXVVLRQLQWKHPDLQRSLQLRQRIWKHLVVXHRIMXULVGLFWLRQRIKHUHLQUHVSRQGHQW0LOLWDU\
&RPPLVVLRQ1RQHHGVQRDPSOLILFDWLRQ,RQO\ZLVKWRSXQFWXDOL]HDEURDGHUIRXQGDWLRQIRUP\FRQFXUUHQFH,
KDYH DOZD\V PDLQWDLQHG LW LV HOHPHQWDU\ KLVWRULFDOO\ DQG OHJDOO\ WKDW LQ DQ\ UHJLPH RI PDUWLDO ODZ RIIHQGHUV
DJDLQVWLWVREMHFWLYHVDUHDQGRXJKWWREHWULHGE\PLOLWDU\WULEXQDOVLQDFFRUGDQFHZLWKWKHSURFHGXUHSUHVFULEHG
IRU WKHP 7R IHHO DSSUHKHQVLYH WKDQ WKDW XQOHVV WKH &RXUW XSKROGV SHWLWLRQHU
V FRQWHQWLRQ WKDW DV D FLYLOLDQ KH
FDQQRWEHWULHGE\UHVSRQGHQWFRPPLVVLRQIRUWKHFULPHVDOOHJHGO\FRPPLWWHGSULRUWRWKHSURFODPDWLRQRIPDUWLDO
ODZ WKRXVDQGV RI )LOLSLQRV UXQ WKH ULVN RI EHLQJ VLPLODUO\ KDLOHG EHIRUH PLOLWDU\ FRXUWV DQG GHSULYHG RI WKHLU
FRQVWLWXWLRQDO ULJKWV WR GXH SURFHVV LV WR LJQRUH WKDW WKURXJKRXW WKH OLIH RI DOO QDWLRQV ZKHQ UHEHOOLRQV DQG
UHYROXWLRQVZHUHPRXQWHGQRGLVWLQFWLRQKDVHYHUEHHQGUDZQDPRQJWKRVHLJQLWLQJWKHXSULVLQJZKLFKQDWXUDOO\
ZDVGRQHEHIRUHDQ\GHFODUDWLRQRIPDUWLDOODZDVWRZKHWKHUWKH\DUHFLYLOLDQVRUPLOLWDU\PHQIRUSXUSRVHVRI
WU\LQJ WKHP EHIRUH WKH PLOLWDU\ FRXUWV RI WKH OHJLWLPDWH RU YLFWRULRXV JRYHUQPHQW DW OHDVW ZKHQHYHU SURVHFXWLRQ
KDV WR EH XQGHUWDNHQ EHIRUH WKH KRVWLOLWLHV ZHUH RYHU $QG LQ WKLV FRQQHFWLRQ LW PD\ EH VDLG RI PRUH UHFHQW
PLOLWDU\WULEXQDOVWU\LQJUHEHOVWKDWPRUHVDIHJXDUGVDUHEHLQJDGRSWHGLQRUGHUWKDWWKHHOHPHQWDU\UHTXLUHPHQWV
RIGXHSURFHVVPD\EHVXUHO\REVHUYHGE\WKHP0RUHRYHULWZRXOGEHDPLVFRQFHSWLRQRIWKHWUXHLPSRUWRIWKLV
GHFLVLRQWRVXSSRVHWKDWLWPD\EHWDNHQDGYDQWDJHRIE\DQ\IXWXUHJRYHUQPHQWIRUDV,KDYHH[SODLQHGLQP\
FRQFXUULQJRSLQLRQLQWKH+DEHDV&RUSXVFDVHVDQ\VHOIUHVWUDLQWWKH&RXUWKDVRSWHGWRH[HUFLVHLQLWVGHFLVLRQVVR
IDU UHQGHUHG IURP DVVHUWLQJ LWV MXGLFLDO DXWKRULW\ WR LQWHUIHUH ZLWK WKH DFWXDWLRQV RI WKH ([HFXWLYH FRQVLGHULQJ LW KDV QRW
IRXQG DQ\ HYLGHQFH RI PDQLIHVW DEXVH RI GLVFUHWLRQ RU JURVV DUELWUDULQHVV LQ WKHP GRHV QRW PHDQ WKH 6XSUHPH &RXUW KDV
ORVWWKHSRZHUWRDFWDFFRUGLQJO\LQDSSURSULDWHFDVHVWKDWPD\FRPHODWHU$QGWKHUHEHLQJQRTXHVWLRQWKDW3URFODPDWLRQ
ZKLFKHVWDEOLVKHGPDUWLDOODZLQWKH3KLOLSSLQHVLV
YDOLGLWQHFHVVDULO\IROORZVWKDWUHVSRQGHQWPLOLWDU\WULEXQDOZKLFKKDVEHHQFUHDWHGXQGHULWDUHYHVWHGZLWKMXULVGLFWLRQWR
WU\DQGGHFLGHSHWLWLRQHU
VFDVHVLWDSSHDULQJWKDWWKHFKDUJHVDQGVSHFLILFDWLRQVDJDLQVWKLPDUHUHODWHGWRWKHFDXVHVWKDW
JDYHRFFDVLRQWRWKH3URFODPDWLRQQRPDWWHUWKDWWKHRIIHQVHVFKDUJHGWKHUHLQZHUHFRPPLWWHGORQJEHIRUHWKHLVVXDQFHRI
VDLG SURFODPDWLRQ 2WKHUZLVH WKH DOWHUQDWLYH ZRXOG EH WR DZDLW WKH WHUPLQDWLRQ RI PDUWLDO ODZ ZKHQ DOO SDVVLRQV VKDOO KDYH
VXEVLGHG DQG WKH FRXUWV FRXOG FDOPO\ DQG ZLWKRXW UHJDUG WR WKH SHUVRQDO IHHOLQJV RI WKH MXGJH DV WR WKH PHULWV RI WKH
UHEHOOLRQPDNHDQLPSDUWLDOGHFLVLRQEXWWKDWZRXOGPHDQWKHFRQWLQXHGGHWHQWLRQRIWKHSHWLWLRQHULQWKHPHDQWLPH
,W LV LQVLVWHG KRZHYHU WKDW VLQFH WKH FLYLO FRXUWV DUH RSHQ LW LV GHURJDWLYH RI WKHLU FRQVWLWXWLRQDO DXWKRULW\ WR
VDQFWLRQ SHWLWLRQHU
V WULDO LQ D PLOLWDU\ FRPPLVVLRQ 6XFK FRQWHQWLRQ LJQRUHV WKH IXQGDPHQWDO PLVVLRQ RI PLOLWDU\
FRXUWV GXULQJ PDUWLDO ODZ ,Q DQ\ PDUWLDO ODZ VLWXDWLRQ ZKHUHLQ FLYLO FRXUWV DUH FRQWLQXHG WKHLU FRH[LVWHQFH ZLWK
PLOLWDU\WULEXQDOVRXJKWQRWWRFUHDWHDQ\FRQIOLFWRIMXULVGLFWLRQ7KHWULDODQGSXQLVKPHQWRIRIIHQGHUVDJDLQVWWKH
HVWDEOLVKHGRUGHUVKRXOGDVDPDWWHURIQHFHVVLW\EHOHIWLQWKHKDQGVRIWKHPLOLWDU\ZKHUHDVWKHFLYLOFRXUWVDUH
VXSSRVHGWRDLGLQWKHSUHVHUYDWLRQRIQRUPDOVRFLHW\DPRQJWKHQRQRIIHQGHUVE\FRQWLQXLQJWKHH[HUFLVHRIWKHLU
MXULVGLFWLRQRYHUDOOFLYLOPDWWHUVZKLFKKDYHQRGLUHFWUHODWLRQWRWKHLPSHUDWLYHVRIWKH3URFODPDWLRQ$QGDVYHU\
ZHOOH[SODLQHGLQWKHPDLQRSLQLRQWKHFRQVWLWXWLRQDOUHTXLUHPHQWVRIGXHSURFHVVDUHEHLQJFRPSOLHGZLWKHYHQLQ
WKHPLOLWDU\WULEXQDOV
,Q OHJDO FRQWHPSODWLRQ WKHUH LV KHUH QR GLPLQXWLRQ PXFK OHVV D GHURJDWLRQ RI WKH MXGLFLDO SRZHU YHVWHG E\ WKH
&RQVWLWXWLRQXSRQWKH6XSUHPH&RXUWDQGRWKHULQIHULRUFRXUWVHVWDEOLVKHGE\ODZ$V,PDGHFOHDULQP\VHSDUDWH
RSLQLRQLQWKH+DEHDV&RUSXVFDVHV RQFH WKH 6XSUHPH &RXUW UHIUDLQV GXULQJ D QDWLRQDO HPHUJHQF\ E\ YLUWXH RI WKH
GLVFUHWLRQLPSOLFLWO\JUDQWHGWRLWE\WKHSHRSOHLQWKH&RQVWLWXWLRQIURPLQYDOLGDWLQJWKHSURFODPDWLRQRIPDUWLDOODZEHFDXVH
LW LV FRQYLQFHG WKDW WKHUH KDV EHHQ QR SDWHQW DUELWUDULQHVV LQ LWV LVVXDQFH ZKLFK :H KDYH DFWXDOO\ GRQH DOUHDG\ LQ VDLG
FDVHVWKHUHFDQEHQROHJDOREMHFWLRQWRWKHH[LVWHQFHRIPLOLWDU\FRXUWVIRUWKHSXUSRVHV,KDYHMXVWLQGLFDWHG$QGLWPXVW
EH VR IRU LW LV HQWLUHO\ UDWLRQDO WKDW PLOLWDU\ WULEXQDOV DUH SHFXOLDUO\ ILW LQ YLHZ RI WKH PRUH VXPPDU\ DQG H[SHGLWLRXV
SURFHGXUH GHVLJQHG IRU WKHLU IXQFWLRQLQJ WR WHPSRUDULO\ DGPLQLVWHU MXVWLFH LQ WKH SURPSW DQG XQHQFXPEHUVRPH PDQQHU
UHTXLUHG E\ WKH H[LJHQFLHV RI WKH VLWXDWLRQ ,Q RWKHU ZRUGV WKH WKHDWHURIZDU WHVW LV QRW WUXO\ GHWHUPLQDWLYH RI WKH
FRQVWLWXWLRQDOLW\ RI PLOLWDU\ WULDOV GXULQJ PDUWLDO ODZ HYHQ ZKHQ PDUWLDO ODZ LV SURFODLPHG IRU WKH H[SUHVV SXUSRVHV RI
VLPXOWDQHRXVO\ UHIRUPLQJ VRFLHW\ ZLWK WKH VXSSUHVVLRQ RI WKH UHEHOOLRQ E\ FDXVHV WKHUHIRUH PD\ QRW UHFXU :KHWKHU RU QRW
WKH DXWKRULW\ RI WKH FLYLO FRXUWV PD\ JLYH ZD\ WR PLOLWDU\ MXULVGLFWLRQ VKRXOG UDWKHU GHSHQG RQ WKH QDWXUH RI WKH RIIHQVHV
FRPPLWWHGDQGLWVUHODWLRQWRWKHHOLPLQDWLRQRIWKHXQQHFHVVDU\KLQGUDQFHVRUREVWDFOHVWRWKHFRPSOHWHUHVWRUDWLRQRIRUGHU
DQGWKHDWWDLQPHQWRIWKHVRFLDODQGSROLWLFDOREMHFWLYHVRIWKH3URFODPDWLRQ
3HWLWLRQHU
V DOOHJDWLRQ RI SUHMXGJPHQW DOEHLW ODFNLQJ LQ VXIILFLHQW MXULGLFDO SHUVXDVLYHQHVV LV QHYHUWKHOHVV
ZRUWK\RIVHULRXVFRQVLGHUDWLRQE\WKHDXWKRULWLHVZKRFDQSURYLGHUHOLHI
7KDW,DPVRPHKRZLPSUHVVHGE\SHWLWLRQHU
VFRQWHQWLRQRIVXSSRVHGSUHMXGJPHQWRIKLVFDVHE\WKH3UHVLGHQW
ZKR KDV RUGHUHG WKH FUHDWLRQ RI WKH PLOLWDU\ FRXUWV DQG E\ ZKRP WKHLU GHFLVLRQV DUH WR EH UHYLHZHG IRU ILQDO
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
DSSURYDOLVQRVHFUHW$WWKHRSHQKHDULQJRIWKLVFDVHEHIRUHWKLV&RXUWRQ$SULOODVW,KDGRFFDVLRQWRDVNWKH
6ROLFLWRU*HQHUDOZKDWSRVVLEOHLPSHGLPHQWVDUHWKHUHWRWKHWUDQVIHURISHWLWLRQHU
VFDVHWRWKHFLYLOFRXUWVZKLFK
FDQ ULJKWO\ EH GRQH XQGHU WKH ODZ %XW WKDW ZDV RI FRXUVH IDU IURP LQGLFDWLQJ WKDW , EHOLHYH WKDW LQGHHG WKHUH
FRXOGEHVXFKSUHMXGJPHQW,KDYHIDLWKWKDWLQWKHGLVFKDUJHRIKLVVROHPQFRQVWLWXWLRQDOO\SUHVFULEHGRDWKWRGR
MXVWLFHWRHYHU\PDQ3UHVLGHQW0DUFRVZRXOGQRWEHFDSDEOHRIZDQWRQO\GLVFDUGLQJWKHLQKHUHQWUHVSRQVLELOLWLHV
RIKLVKLJKRIILFHNQRZLQJDVKHGRHVWKDWKHZRXOGQRWEHZKHUHKHLVZHUHLWQRWIRUWKHWUXVWDQGFRQILGHQFH
UHSRVHG LQ KLP E\ WKH SHRSOH ZKHQ WKH\ HOHFWHG KLP DV WKH PDQ ZKR E\ WKH H[HUFLVH RI WKH LPPHQVH SRZHUV
JLYHQKLPE\WKH&RQVWLWXWLRQZRXOGSUHFLVHO\SURWHFWDQGGHIHQGWKHPDJDLQVWLQMXVWLFHDQGRSSUHVVLRQ
7UXWK WR WHOO WKH WKRXJKW RU VXVSLFLRQ RI SUHMXGJPHQW LQ PLOLWDU\ MXVWLFH GXULQJ PDUWLDO ODZ LV LQHYLWDEOH IRU WKH
REYLRXVUHDVRQWKDWWKHFRQFHQWUDWLRQRISRZHUVLQVXFKDVLWXDWLRQFDUULHVZLWKLWLQKHUHQWO\WKHVSHFWDFOHRIWKH
DUP\ EHLQJ WKH DFFXVHU DQG MXGJH DW WKH VDPH WLPH :KHQ LW LV FRQVLGHUHG KRZHYHU WKDW PLOLWDU\ FRXUWV DUH
JHQHUDOO\FROOHJLDWHZLWKHDFKPHPEHUWKHUHRIEHLQJREOLJHGWRYRWHVHFUHWO\QRWRQO\RQWKHLVVXHRIWKHJXLOWRI
WKHDFFXVHGDVWRHDFKFKDUJHDQGVSHFLILFDWLRQEXWVHSDUDWHO\DOVRRQWKHSHQDOW\WREHLPSRVHGDQGWKDWLQ
LPSRUWDQWFDVHVSDUWLFXODUO\FDSLWDORQHVOLNHVRPHRIWKRVHRISHWLWLRQHUWKHLUGHFLVLRQVDUHDXWRPDWLFDOO\VXEMHFW
WRUHYLHZDQGUHFRPPHQGDWLRQE\DQXPEHURIOHYHOVRIDXWKRULW\VXFKDVWKH&KLHIRI6WDIIWKH%RDUGRI5HYLHZ
WKH6HFUHWDU\RI1DWLRQDO'HIHQVHHWFHDFKZLWKWKHLUFRUUHVSRQGLQJVWDIIMXGJHDGYRFDWHVEHIRUHUHDFKLQJWKH
3UHVLGHQW IRU WKH ILQDO YHUGLFW RQH FDQQRW HVFDSH WKH FRQYLFWLRQ WKDW PRUH H[DFWLQJ VDIHJXDUGV DJDLQVW DQ\
SRVVLELOLW\ RI SDUWLDOLW\ DQG SUHMXGJPHQW PD\ QRW EH IRXQG LQ WKH FLYLO FRXUWV ,W LV HQWLUHO\ ZURQJ XQMXVW DQG
XQZDUUDQWHGWRWKLQNRIDOODUP\PHQDVKDYLQJRQO\RQHPLQG$IWHUDOOWKH\DUHDOVR)LOLSLQRVOLNHSHWLWLRQHUDQG
FRXQVHODQGWKH\FDQQRWKDYHOHVVLQWHUHVWLQDQGGHYRWLRQWRWKHVDFUHGLGHDOVIRUZKLFKRXUFRPPRQFRXQWU\
DQGSHRSOHH[LVW
0RUHRYHULQWKHFDVHDWEDUWKHVWDWHPHQWVDWWULEXWHGWRWKH3UHVLGHQWDQGZKLFKSHWLWLRQHUTXRWHVDQGPDLQWDLQV
DUHUHIOHFWLYHRIWKH3UHVLGHQW
VVXSSRVHGSUHMXGJPHQWRIKLVFDVHVYLHZHGREMHFWLYHO\ZRXOGLQGLFDWHDWPRVW
RQO\DQRIIKDQGHYDOXDWLRQRIWKHHYLGHQFHWKHQRQKDQGZLWKRXWUHJDUGWRWKHRWKHUHYLGHQFHQRZLQSRVVHVVLRQ
RI WKH SURVHFXWLRQ DQG ZLWKRXW FRXQWLQJ WKRVH ZKLFK SHWLWLRQHU ZLOO SUHVHQW RQ KLV EHKDOI DQG GRHV QRW
QHFHVVDULO\ DPRXQW WR D SURQRXQFHPHQW RI JXLOW $V VXFK WKHUHIRUH WKH\ GR QRW VXIILFLHQWO\ SURYH ZKDW WKH
MXGJPHQWRIWKH3UHVLGHQWZRXOGEHDIWHUWKHZKROHHYLGHQFHRISHWLWLRQHU
VFDVHVVKDOOKDYHEHHQH[DPLQHGDQG
HYDOXDWHG E\ KLP ,Q RWKHU ZRUGV IURP WKH VWULFWO\ OHJDO SRLQW RI YLHZ RI SHWLWLRQHU
V SRVH DERXW GHQLDO RI GXH
SURFHVVWRKLPE\UHDVRQRISUHMXGJPHQWODFNVSHUVXDVLYHQHVV
/HJDOVWDQGDUGVDVLGHKRZHYHULWLVLPPHQVHO\UHDVVXULQJWKDWWKH3UHVLGHQWKDVDQQRXQFHGWKDWDVVRRQDVWKH
SUHVHQW SHUSHWXDWLRQ SURFHHGLQJV DUH WHUPLQDWHG KH ZLOO FRQVLGHU WKH DGYLVDELOLW\ RI WUDQVIHUULQJ WKH FDVHV LQ
TXHVWLRQWRWKHFLYLOFRXUWV6KRXOGWKDWEHGRQHDQG,KDYHQRUHDVRQIRUEHOLHYLQJWKDWLWZLOOQRWEHVRGRQHLW
ZLOOQRWRQO\EHWKDWSHWLWLRQHUZLOOEHUHOLHYHGRIDJUHDWGHJUHHRIPHQWDOWRUWXUHEXWDVLPSRUWDQWO\LIQRWPRUH
VRWKH3UHVLGHQWVKDOOKDYHJLYHQWKHQDWLRQHORTXHQWSURRIQRWVRPXFKRIKLVQRELOLW\DVRIKLVGHWHUPLQDWLRQQRW
WR DOORZ WKH GHFLVLRQ LQ WKH FDVHV RI SHWLWLRQHU WR EH LQ DQ\ PDQQHU WDLQWHG E\ WKH VOLJKWHVW VXVSLFLRQ RI DQ\
SHUVRQDOIHHOLQJRURSLQLRQRQKLVSDUW$QG,KDYHQRIHDUVDWDOOWKDWRWKHUVZKRDUHDOVRVLPLODUO\FKDUJHGEHIRUH
PLOLWDU\FRPPLVVLRQVZLOOGHPDQGWKHVDPHWUHDWPHQWWKHUHE\VXEYHUWLQJWKHZKROHV\VWHPRIFULPHSURVHFXWLRQ
XQGHU PDUWLDO ODZ , KDYH HDUOLHU DGYHUWHG WR IRU LQ WKH SDUWLFXODU FDVH RI SHWLWLRQHU WKHUH LV WKH VLQJXODU
FLUFXPVWDQFHV WKDW WKH 3UHVLGHQW KDV PDGH VWDWHPHQWV ZKLFK KDYH VRPH UHOHYDQFH WR KLV FDVHV ZKLFK LW GRHV
QRW DSSHDU KDV EHHQ GRQH LQ WKRVH RI WKH RWKHUV %HVLGHV XQGHU *HQHUDO 2UGHU 1R WKH 3UHVLGHQW KDV
DOUHDG\WUDQVIHUUHGWKHPDVVRIWKHFDVHVDJDLQVWFLYLOLDQVWRWKHFLYLOFRXUWV%ULHIO\WKHQZKLOH,KROGWKDWWKHUHLV
QRWKLQJ FRQVWLWXWLRQDOO\ ZURQJ ZLWK KDYLQJ SHWLWLRQHU WULHG E\ D PLOLWDU\ WULEXQDO LW LV P\ FRQYLFWLRQ WKDW LW LV
SUHIHUDEOHIURPDOORWKHUSRLQWVRIYLHZWKDWKLVFDVHVEHWUDQVIHUUHGWRWKHFLYLOFRXUWVDQGQRWEHFDXVHLQIDFWKH
ZLOOQRWJHWMXVWLFHIURPWKHIRUPHUEXWEHFDXVHKHZLOOKDYHPRUHSHDFHRIPLQGLQWKHODWWHUDQGWKHSHRSOHZLOO
EH VSDUHG HYHU\ GRXEW DV WR ZKHWKHU RU QRW WKH VOLJKWHVW HOHPHQW RI SDUWLDOLW\ RU ELDV KDV FUHSW LQWR RQH RI WKH
PRVWLPSRUWDQWWULDOVLQWKHFXUUHQWKLVWRU\RIRXUFRXQWU\%XWRIFRXUVHLWLVQRWZLWKLQWKHDPELWRIWKHDXWKRULW\
RIHYHQWKH&RXUWLWVHOIPXFKOHVVWKLVZULWHUWRGLUHFWWKH3UHVLGHQW
VH[HUFLVHRIWKHSRZHUVYHVWHGLQKLPE\WKH
&RQVWLWXWLRQVRDOOWKDW,FDQGRLVWRYRLFHWKHIDLWKDQGKRSHWKDWWKH3UHVLGHQWPD\QRWHQFRXQWHUDQ\IXUWKHU
REVWDFOH WR KLV DFWXDOO\ RUGHULQJ WKH WUDQVIHU RI SHWLWLRQHU
V FDVHV WR WKH FLYLO FRXUWV LQ DFFRUGDQFH ZLWK KLV
DIIRUPHQWLRQHGSXEOLFDQQRXQFHPHQWWKHVRRQHUWKHEHWWHU
3HWLWLRQHU KDV WKH ULJKW WR ZDLYH KLV SUHVHQFH DW WKH SHUSHWXDWLRQ SURFHHGLQJV EHIRUH WKH UHVSRQGHQW
&RPPLVVLRQ
$V , VWDWHG HDUOLHU ZKDW UHDOO\ VHHPV WR KDYH LQLWLDOO\ SURYRNHG SHWLWLRQHU
V GHFLVLRQ WR JR RQ VRPH NLQG RI D
KXQJHUVWULNHZDVWKHUHVSRQGHQW&RPPLVVLRQ
VWXUQDERXWLQUHJDUGWRWKHLVVXHRIZKHWKHURUQRWKHFDQZDLYH
KLV SUHVHQFH GXULQJ WKH SHUSHWXDWLRQ SURFHHGLQJV EHIRUH LW $IWHU UXOLQJ DW ILUVW WKDW KH KDG VXFK ULJKW
VXEVHTXHQWO\XSRQPRWLRQIRUUHFRQVLGHUDWLRQRIWKHSURVHFXWLRQWKH&RPPLVVLRQUHYHUVHGLWVHOIDQGUXOHGWKDW
KLV SUHVHQFH LV LQGLVSHQVDEOH DQG FDQ WKXV EH VHFXUHG FRPSXOVRULO\ %XW LI VXFK DFWLRQ RI WKH UHVSRQGHQW
FRPPLVVLRQLVWKHFDXVHRISHWLWLRQHU
VKXQJHUVWULNHDVKHKDGVWDWHGDWWKHEHJLQQLQJKHPD\QRZGHVLVWIURP
FRQWLQXLQJZLWKKLVUDWKHUSHULORXVSRVWXUH$OOWKHPHPEHUVRIWKH&RXUWSDUWLFLSDWLQJLQWKLVFDVHDUHDJUHHGWKDW
WKH UXOLQJ LQ 3HRSOH YV $YDQFHxD UHOLHG XSRQ E\ WKH SURVHFXWLRQ VKRXOG EH DW OHDVW PRGLILHG LI QRW FRPSOHWHO\
RYHUWXUQHG6L[RIXVQDPHO\-XVWLFHV)HUQDQGR7HHKDQNHH$QWRQLR0XxR]3DOPD$TXLQRDQGWKLVZULWHUDUHRIWKHYLHZ
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
WKDWSHWLWLRQHUDOWKRXJKXQGHUGHWHQWLRQDQGFKDUJHGZLWKDFDSLWDORIIHQVHKDVWKHULJKWWRDEVHQWKLPVHOIDWDQ\VWDJHRI
WKHWULDOZKLOHWKHRWKHUILYH-XVWLFHVQDPHO\-XVWLFHV&DVWUR0DNDVLDU(VJXHUUD&RQFHSFLRQ-UDQG0DUWLQEHOLHYHDOVR
WKDW WKDW ULJKW H[LVWV VXEMHFW KRZHYHU WR WKH TXDOLILFDWLRQ WKDW LW FDQQRW EH LQYRNHG ZKHQHYHU KLV SUHVHQFH LV QHHGHG IRU
LGHQWLILFDWLRQSXUSRVHV$FFRUGLQJO\LWLVHQWLUHO\XSWRWKHSHWLWLRQHUZKHWKHURUQRWWRDWWHQGWKHSHUSHWXDWLRQSURFHHGLQJV
QRZ JRLQJ RQ H[FHSW ZKHQ KH LV WR EH LGHQWLILHG E\ WKH ZLWQHVVHV RQ WKH VWDQG DQG RQO\ IRU MXVW WKH WLPH QHHGHG IRU WKDW
H[FOXVLYHSXUSRVH
6SHDNLQJ IRU P\VHOI , ILQG HPLQHQW PHULW LQ WKH FRQWHQWLRQ RI SHWLWLRQHU WKDW HYHQ IRU LGHQWLILFDWLRQ SXUSRVHV KH
FDQQRWEHPDGHWREHSUHVHQWDWWKHWULDODJDLQVWKLVZLOO6LQFHXQGHUWKH&RQVWLWXWLRQWULDORIFULPLQDOFDVHVLQWKH
DEVHQFH RI WKH DFFXVHG LV DOORZHG ZKHQ DIWHU WKH DUUDLJQPHQW DQG LQ VSLWH RI GXH QRWLFH KH IDLOV WR DSSHDU
ZLWKRXW MXVWLILFDWLRQ SXUVXDQW WR 6HFWLRQ RI WKH %LOO RI 5LJKWV RU $UWLFOH ,9 , FDQQRW VHH ZK\ DQ DFFXVHG ZKR
GRHV QRW ZDQW WR XQGHUJR WKH H[SHULHQFH RI EHLQJ UHSHDWHGO\ SRLQWHG WR DQG RI EHLQJ WKH WDUJHW RI WKH FXULRXV
H\HVRIWKHSXEOLFFDQQRWHOHFWWROHDYHWKHGHIHQVHRIKLVFDVHDQGRIKLVULJKWVWRKLVFRXQVHOLQKLVDEVHQFHRU
HYHQSXWKLPVHOIFRPSOHWHO\DWWKHPHUF\RIWKHFRXUWVHFXUHLQWKHWKRXJKWWKDWLWLVDQ\ZD\WKHLQHVFDSDEOHGXW\
RIWKHMXGJHQRWWRDOORZDQ\WKLQJLOOHJDORULQKXPDQWREHGRQHWRKLP
,FDQXQGHUVWDQGZK\DQDFFXVHGKDVWREHSUHVHQWDWWKHDUUDLJQPHQWDQGDWWKHUHDGLQJRIWKHVHQWHQFH,QWKH
IRUPHULWKDVWREHNQRZQWRWKHFRXUWWKDWKHLVLQGHHGWKHSHUVRQFKDUJHGDQGWKDWKHSHUVRQDOO\XQGHUVWDQGV
WKH DFFXVDWLRQ DJDLQVW KLP 0RUH LPSRUWDQWO\ WKH SOHD PXVW EH HQWHUHG E\ KLP SHUVRQDOO\ WR DYRLG DQ\
PLVFRQVWUXFWLRQRUPLVUHSUHVHQWDWLRQLQQRFHQWRURWKHUZLVH,QWKHODWWHULWLVHVVHQWLDOWKDWWKHDFFXVHGKLPVHOI
VKRXOG EH DZDUH IURP SHUVRQDO NQRZOHGJH ZKDW LV WKH YHUGLFW RI WKH FRXUW DQG LI LW EH FRQYLFWLRQ ZKDW LV WKH
SHQDOW\WREHVHUYHGE\KLP7KHVHDUHPDWWHUVWRRSHUVRQDOWRSHUPLWGHOHJDWLRQ$WWKHVDPHWLPHKLVSUHVHQFH
PDNHV LW VLPSOHU LQ WKH SXEOLF LQWHUHVW IRU WKH DXWKRULWLHV WR HQIRUFH H[HFXWLRQ RI DQ\ DGYHUVH MXGJPHQW %XW ,
FDQQRWVHHZK\DQDFFXVHGVKRXOGEHFRPSHOOHGWREHSUHVHQWDWWKHWULDOZKHQKHSUHIHUVSHUKDSVWKHVROLWXGH
RIKLVFHOOWRSUD\HLWKHUIRUIRUJLYHQHVVLIKHNQRZVKHLVJXLOW\RULIKHLVLQQRFHQWIRU*RGWRLOOXPLQHWKHFRXUW
VRWKHUHZRXOGEHXQHUULQJMXVWLFHLQKLVFDVH
0\XQGHUVWDQGLQJLVWKDWWKHSUREOHPRILGHQWLILFDWLRQRIDQDFFXVHGPD\EHDGHTXDWHO\VROYHGZLWKRXWYLRODWLQJ
WKH MXVWLILHG ZLVKHV RI WKH DFFXVHG WR EH OHIW DORQH 7R VWDUW ZLWK LI KH LV UHIHUUHG WR E\ WKH ZLWQHVVHV RI WKH
SURVHFXWLRQ E\ QDPH WKH FRXUW PD\ SUHVXPH WKDW WKH DFFXVHG ZKR KDV DFNQRZOHGJHG KLV WUXH QDPH DW WKH
DUUDLJQPHQWLVWKHRQHLQGLFDWHG7KLV&RXUWUXOHGXQHTXLYRFDOO\PRUHWKDQVL[W\ILYH\HDUVDJRLQ86YV$GROIR
3KLO DQG UHLWHUDWHG LW LQ 3HRSOH YV 6DQWRV 3KLO WZHQW\ \HDUV ODWHU DQG WKHUH KDV EHHQ QR
FRQWUDU\ RSLQLRQ VLQFH WKHQ WKDW WKH UHEXWWDEOH SUHVXPSWLRQ RI LGHQWLW\ RI SHUVRQ LV DSSOLFDEOH QRW RQO\ LQ FLYLO
FDVHVEXWDOVRWRWKHLGHQWLILFDWLRQRIWKHDFFXVHGLQFULPLQDOFDVHV7RP\PLQGWKHUHLVDEVROXWHO\QRQHHGWKDW
WKH DFFXVHG EH SHUVRQDOO\ LGHQWLILHG E\ WKH FRXUW ZKLOH WKH LQFXOSDWLQJ ZLWQHVV LV WHVWLI\LQJ ZKHUH WKH DFFXVHG
YROXQWDULO\ ZDLYHV KLV SUHVHQFH DQG HYHQ VXJJHVWV WR WKH FRXUW DV SHWLWLRQHU KDV GRQH WR DYDLO RI WKH OHJDOO\
SUHVXPSWLRQMXVWPHQWLRQHG6HH6HFZ5XOH
,W LV FODLPHG WKDW WKH VWDWH KDV WKH XQTXHVWLRQDEOH ULJKW DQG GXW\ WR VHH WR LW WKDW WKH DFFXVHG LV QRW FRQYLFWHG
XQOHVVKHLVGXO\LGHQWLILHG7RWKHZLVGRPDQGQRELOLW\RIVXFKSURSRVLWLRQ,PXVWVD\DPHQ%XW,PDLQWDLQWKDWLW
LV DQ LQFRQJUXLW\ LQ SULQFLSOH WR SUHGLFDWH RQ VXFK D MXVW SUHPLVH WKH FRQFOXVLRQ WKDW WKH VWDWH PD\ FRPSHO WKH
DFFXVHGWRDVVLVWLWE\H[KLELWLQJKLPVHOIIRUSXUSRVHVRILGHQWLILFDWLRQ,DPDZDUHRISUHFHGHQWVWRWKHHIIHFWWKDW
WKHFRPSXOVLRQDJDLQVWVHOILQFULPLQDWLRQSURKLELWHGE\WKH%LOORI5LJKWVGRHVQRWFRQWHPSODWHDFWVUHTXLUHGRIWKH
DFFXVHG ZKLFK GR QRW LQYROYH WKH HPSOR\PHQW RI KLV LQWHOOHFW ,Q RWKHU ZRUGV KH FDQQRW EH PDGH WR SURGXFH
HYLGHQFHDJDLQVWKLPVHOIEXWKHFDQEHFRPSHOOHGWRSHUIRUPPHFKDQLFDODFWVFRQGXFLYHWRWKDWHQG%XW,GRQRW
VHHDQ\DQDORJ\EHWZHHQWKHIDFWVLQWKRVHSUHFHGHQWVDQGWKHFDVHDWEDUDQGLQDQ\HYHQW,GRQRWVHHWKH
MXVWLFHDQGIDLUQHVVRIWKRVHSUHFHGHQWV$VIDUDV,DPFRQFHUQHGWKHSURVHFXWLRQPXVWSURYHLWVHDVHE\LWVRZQ
HIIRUWDQGZLWKLQRZQUHVRXUFHVDQGVKRXOGQRWEHSHUPLWWHGWRGHSHQGRQWKHDFFXVHGIRUDQ\WKLQJWKDWZLOOKHOS
LWVHFXUHKLVFRQYLFWLRQ,NQRZWKDWWKH&RQVWLWXWLRQKDVSODFHGHPSKDVLVRQWKHGXWLHVDQGREOLJDWLRQVRISHUVRQV
LQWKH3KLOLSSLQHVHTXDOO\ZLWKWKH%LOORI5LJKWVEXWQRZKHUHLQWKRVHSHUWLQHQWSURYLVLRQVLQ$UWLFOH9GR,GLVFHUQ
DQ\ GXW\ RU REOLJDWLRQ RQ WKH SDUW RI DQ DFFXVHG WR KHOS WKH SURVHFXWLRQ LQ KDYLQJ KLPVHOI LGHQWLILHG E\ WKH
ZLWQHVVHVRIWKHVWDWH
$IWHUKDYLQJEHHQLQFRQWLQXRXVSUDFWLFHDWWKHEDUIRUPRUHWKDQWKUHHGHFDGHVEHIRUHMRLQLQJWKH&RXUW,VKRXOG
NQRZ WKDW WKH DOPRVW LQYDULDEOH SURFHGXUH SUDFWLFHG LQ WKH LGHQWLILFDWLRQ RI DFFXVHG SHUVRQV DW WKH WULDO LV LQ D
VHQVHLPSUDFWLFDOLIQRWIDUFLFDO$VWKHFDVHVDUHFDOOHGIURPWKHFDOHQGDUWKHDFFXVHGDUHPDGHWRVWDQGDQG
HYLGHQFHWKHLUSUHVHQFHZLWKLQWKHYLHZRIHYHU\ERG\LQWKHFRXUWURRPLQFOXGLQJWKHZLWQHVVHVRIWKHSURVHFXWLRQ
5DUH LV WKH RFFDVLRQ ZKHQ QHFHVVDU\ SUHFDXWLRQV DUH WDNHQ DW WKH LQLWLDWLYH RI PHWLFXORXV GHIHQVH ODZ\HUV WR
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
SUHYHQWWKHZLWQHVVHVIURPVHHLQJWKHDFFXVHGDVWKH\DQVZHUWKHFDOOLQJRIWKHFDOHQGDU0\SRLQWLVWKDWDQ\
TXLEEOLQJDERXWWKHSURSHULGHQWLILFDWLRQRIWKHDFFXVHGE\FRPSHOOLQJKLVSUHVHQFHDWWKHWULDOPD\QRWEHZRUWK
WKHLUUHSDUDEOHLQMXU\WRKXPDQGLJQLW\WKDWFDQEHFDXVHGE\ERGLO\DQGIRUFLEO\WDNLQJWKHDFFXVHGIURPKLVSODFH
RI FRQILQHPHQW WR WKH SODFH RI WULDO LQ WKH HYHQW KH LQVLVWV RQ KLV SRVH WKDW KH LV DJUHHDEOH DQ\ZD\ WKDW WKH
SUHVXPSWLRQRQLGHQWLWLHV,KDYHUHIHUUHGWREHDSSOLHGWRKLVFDVH
,Q WKH SUHFHGHQWV UHOLHG RQ E\ WKH SURVHFXWLRQ LW LV KHOG WKDW LQDVPXFK DV WKH DFFXVHG LV XQGHU GHWHQWLRQ KLV
SHUVRQLVVXEMHFWWRWKHGLVSRVLWLRQRIWKHFRXUWEHIRUHZKRPKHLVFKDUJHG,GLVDJUHH0\SRVLWLRQRQWKLVSRLQWLV
WKDWKLVGHWHQWLRQLVRQO\IRUWKHSXUSRVHRIVHFXULQJWKHH[HFXWLRQRIWKHMXGJPHQWLQWKHHYHQWXDOLW\RIFRQYLFWLRQ
DQG IRU QR RWKHU SXUSRVH GHURJDWLYH RI KLV IUHHGRP WR ZDLYH KLV SHUVRQDO ULJKWV UHODWHG WR WKH SURFHGXUH RI KLV
WULDO +LV FRQVWLWXWLRQDO ULJKWV WR EH KHDUG E\ KLPVHOI RU FRXQVHO WR EH LQIRUPHG RI WKH QDWXUH DQG FDXVH RI WKH
DFFXVDWLRQ DJDLQVW KLP WR KDYH D VSHHG\ DQG SXEOLF WULDO WR PHHW WKH ZLWQHVVHV IDFH WR IDFH DQG WR KDYH
FRPSXOVRU\ SURFHVV WR VHFXUH WKH DWWHQGDQFH RI ZLWQHVVHV DQG WKH SURGXFWLRQ RI ZLWQHVVHV RQ KLV EHKDOI
6HFWLRQ$UW,9LQFOXGLQJWKRVHQRWWREHFRPSHOOHGWREHDZLWQHVVDJDLQVWKLPVHOIWRUHPDLQVLOHQWDQG
QRWWREHVXEMHFWHGWRIRUFHYLROHQFHWKUHDWLQWLPLGDWLRQRUDQ\RWKHUPHDQVZKLFKYLWLDWHVKLVIUHHZLOO6HF
LGDQGHYHQWKDWRIQRWEHLQJWZLFHSXWLQMHRSDUG\RISXQLVKPHQWIRUWKHVDPHRIIHQVH6HFLGPD\
EHZDLYHGE\KLPSURYLGHGWKHZDLYHULVPDGHSURSHUO\$V,VHHLWWKHULJKWWREHSUHVHQWDWWKHWULDOLVPRUHRU
OHVVWKHFRPSRVLWHRIWKHVHULJKWV,KDYHHQXPHUDWHG6LQFHDOORIWKHPVHSDUDWHO\DUHZDLYDEOHZK\PD\QRWWKH
ZDLYHURIDOORIWKHPEHGRQHZKROHVDOHVRWRVSHDNDVORQJDVWKHZDLYHULVFOHDUO\DQGYROXQWDULO\PDQLIHVWHGWR
WKH FRXUW $ERYH DOO , FRQVLGHU WKH ULJKW RI DQ DFFXVHG WR KXPDQ GLJQLW\ WR EH PRUH SUHFLRXV WKDQ DOO KLV RWKHU
ULJKWV KHQFH , FDQQRW VHH WKH SRLQW LQ FRPSHOOLQJ WKH DFFXVHG WR VDFULILFH KLV KXPDQ GLJQLW\ IRU WKH VDNH RI
HQDEOLQJ WKH SURVHFXWLRQ WR LGHQWLI\ KLP LQ SHUVRQ ZKHQ WKH VDPH HQG FDQ DV ZHOO EH OHJDOO\ DWWDLQHG ZLWKRXW
H[DFWLQJIURPKLPVXFKVDFULILFH
6XVWDLQLQJDV,GRVXVWDLQWKHULJKWRISHWLWLRQHUWRDEVHQWKLPVHOIDWWKHWULDOSURSHULWLVXQQHFHVVDU\IRUPHWR
GLVFXVV ZKHWKHU RU QRW WKH SHUSHWXDWLRQ SURFHHGLQJV FRQVWLWXWH SDUW RI WKH WULDO , PXVW PDNH LW FOHDU KRZHYHU
WKDQHYHQLI:HZHUHWRKROGWKDWWKH\DUHSDUWRIWKHWULDOSURSHU,LQVLVWWKDWLIWKHZLWQHVVHVZKRKDYHWHVWLILHGRU
ZLOOWHVWLI\DWWKHSHUSHWXDWLRQSURFHHGLQJVVKRXOGEHDYDLODEOHZKHQWKHWULDODFWXDOO\WDNHVSODFHLWLVWKHULJKWRI
WKHDFFXVHGWRKDYHWKHPUHFDOOHGDQGWREHH[DPLQHGIXUWKHUDQGHYHQDQHZLQWKHVRXQGGLVFUHWLRQRIWKHWULDO
FRXUW3UHVLGHQWLDO'HFUHHSDUDJUDSKDPHQGLQJVXESDUDJUDSKERI3UHVLGHQWLDO'HFUHH1RLVWR
EHVRFRQVWUXHGLQWKHLQWHUHVWRIIDLUQHVVDQGMXVWLFH
$V , FORVH WKLV FRQFXUUHQFH WZR WKRXJKWV FRQWLQXRXVO\ UHFXUULQJ LQ P\ PLQG GXULQJ LWV SUHSDUDWLRQ NHHS XUJLQJ
DUWLFXODWLRQ7KHILUVWLVWKDWWRFRPPLWVXLFLGHLVSURKLELWHGE\WKHODZVRI*RGDQGPDQ1RRQHKDVWKHULJKWWR
WDNHKLVOLIHIRUDQ\UHDVRQ:LWKDOOHDGHUVKLSLQDQ\ILHOGRIKXPDQHQGHDYRUFUHDWHVDUHVSRQVLELOLW\WKDWNQRZV
QRVXUFHDVHIRUDQ\NLQGRIFRQYHQLHQFH3HUVHYHUDQFHRISXUSRVHWREHRIUHDOVLJQLILFDQFHDQGZRUWKUHTXLUHV
RQH
VVXUYLYDO7KHIXWXUHLVLQVFUXWDEOHWKHKDQGRIIDWHJXLGHVRQO\WKRVHZKRELGHWKHLUWLPHDQGGRQRWGHVSDLU
EHIRUHWKHGHVLJQHGPRPHQWFRPHV7KXVLWFRXOG\HWEHDFULPHDOVRDJDLQVWWKHLQWHUHVWVRIRXUFRXQWU\DQG
SHRSOHWRLQGXOJHLQVHOIGHVWUXFWLRQZKHQRQHNQRZVWKDWKHKDVWDOHQWVDQGDWWULEXWHVWKDWFDQEHRIIHUHGIRUWKH
DWWDLQPHQWRIWKHQDWLRQDOGHVWLQ\
7KH VHFRQG FRQFHUQV WKH 6XSUHPH &RXUW ZKRVH LQGHSHQGHQFH RI FRQYLFWLRQ LW LV WKH ERXQGHQ GXW\ RI HYHU\
)LOLSLQR WR NHHS XQVXOOLHG 7KH XQNLQGHVW WKLQJ RI DOO LV IRU WKRVH WR ZKRP \RX FRQFHGH WKH ORIWLHVW RI PRWLYHV WR
LPSXJQUHFNOHVVO\\RXURZQ7KHXQFHDVLQJTXHVWIRUWKHDFKLHYHPHQWRIWKHQDWLRQDOJRDOQDWXUDOO\GLYLGHVPHQ
LQDOOGHPRFUDFLHVLQWRJURXSVHDFKFRPSRVHGRIWKRVHVKDULQJFRPPRQYLHZVDQGIHHOLQJVDVWRKRZWRPDNH
WKH FRXQWU\ VXFFHHG HDUOLHU LQ UHDOL]LQJ LWV LGHDOV 6XFK GLVSDULW\ KRZHYHU FDQQRW SURGXFH GLVXQLW\ DV ORQJ DV
HYHU\RQHLQYROYHGEHFDXVHRIRIILFLDOGXW\RUFKRLFHWUXVWVWKHJRRGIDLWKRIWKHRWKHU
)RU WKH PHPEHUV RI WKH &RXUW WR KDSSHQ WR FRLQFLGH LQ OHJDO YLHZV ZLWK WKH ([HFXWLYH LV QRW VHUYLOLW\ 1HLWKHU
VKRXOGLWEHFRQVLGHUHGHYLGHQFHRIDQ\PHDVXUHRIRUFKHVWUDWLRQRUFRPPRQSODQQLQJ$VDPDWWHURIIDFWWKHUH
KDVQHYHUEHHQDQ\VXFKWKLQJ7KHEHVWSURRILVWKDWDV,KDYHHPSKDVL]HGDWWKHRXWVHWWKLVLVWKHILUVWPDUWLDO
ODZ FDVH LQ ZKLFK WKH UHTXLUHG PDMRULW\ IRU GRFWULQDO SXUSRVHV KDV EHHQ DWWDLQHG :KHUH WKHQ LV WKH DOOHJHG
RUFKHVWUDWLRQ"$QGKRZFRXOGWKHFKDUJHKDYHEDVLVLQWKHIDFHRIWKHXQGHQLDEOHKDSSHQVWDQFHWKDWQRPDUWLDO
ODZRUFRQVWLWXWLRQDOGHFLVLRQKDV\HWFRPHRXWIURPWKH&RXUWZLWKRXWYLJRURXVDQGH[WHQVLYHGLVVHQWVRIQRWDEOH
FRQVLVWHQF\ ,QGHHG RFFDVLRQV WKHUH KDYH EHHQ ZKHQ RQH RU WZR PRUH YRWHV EHFDPH LPSHUDWLYH IRU D PRUH
HIIHFWLYHDQGFRQFOXVLYHUXOLQJDQGQRRQHFDQVD\WKDWDQ\ERG\FRQFHUQHGUHFHLYHGGLFWDWLRQDVWRZKDWWRGR
2I P\ RZQ NQRZOHGJH , EHDU ZLWQHVV WKDW QRW HYHQ D ILQJHU KDV EHHQ OLIWHG LQ DQ\ PDQQHU DJDLQVW DQ\ RI WKH
GLVVHQWHUV$VRIQRZWKH&RXUWKDVQRWIRXQGHQRXJKFDXVHWRKROGDQ\RIWKH3UHVLGHQW
VDFWXDWLRQVVXEPLWWHG
IRU2XUVFUXWLQ\WRKDYHRYHUVWHSSHGFRQVWLWXWLRQDOERXQGV,WLVHYLGHQWWKDWGXHFDUHLVEHLQJWDNHQWRDYRLGIDXOW
LQWKLVUHVSHFW,FDQLPDJLQHQRUHDVRQZK\DQGQRRFFDVLRQZKHQVXFKHIIRUWZLOOHYHUEHUHOD[HGDWDOO0RUHVR
LQWKHHDUQHVWYLJLOE\WKH6XSUHPH&RXUW
0812=3$/0$-GLVVHQWLQJ
,FRQFXUZLWKWKHGLVVHQWLQJ2SLQLRQRI-XVWLFH&ODXGLR7HHKDQNHHZLWKDGGLWLRQDOH[SODQDWLRQIRUP\YRWH
2QWKH0RWLRQWRZLWKGUDZ3HWLWLRQ²
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
)URP D OHWWHU RI %HQLJQR $TXLQR -U RI $SULO DGGUHVVHG WR KLV ZLIH FKLOGUHQ UHODWLYHV DQG IULHQGV
VXEPLWWHG WR WKH &RXUW DQG QRZ SDUW RI WKH UHFRUG RI WKH FDVH VHH SDJH RI -XVWLFH 7HHKDQNHH
V GLVVHQWLQJ
RSLQLRQ , DP FRQYLQFHG WKDW SHWLWLRQHU QR ORQJHU GHVLUHV WR VHHN UHGUHVV RU UHOLHI IURP WKLV &RXUW +H ZRXOG
UDWKHUPDNHRIKLVSOLJKWKLVFRQWLQXHGGHWHQWLRQIURP6HSWHPEHULQDPLOLWDU\FDPSDQGWULDOEHIRUHD
0LOLWDU\ &RPPLVVLRQ IRU FULPHV DOOHJHGO\ FRPPLWWHG EHIRUH WKH SURFODPDWLRQ RI 0DUWLDO /DZ D PDWWHU RI
FRQVFLHQFHEHWZHHQKLPVHOIDQGWKH3UHVLGHQWRIWKH5HSXEOLFDQGRIIHUKLVOLIHIRUZKDWKHEHOLHYHVLVDULJKWIXO
FDXVH:KRDP,WRVWDQGRQWKHZD\RIWKLVPDQZKRRIIHUVKLPVHOILQVXSUHPHVDFULILFHDQGLVUHDG\WRFRQVLJQ
KLVIDWHWRKLV0DNHUIRUKLVFRXQWU\DQGKLVSHRSOH"
2QWKHPHULWVRIWKH&DVH²
,YRWHWRJUDQWWKH3HWLWLRQIRU3URKLELWLRQEHFDXVHEUXVKLQJDVLGHWKHSHUVRQDOLWLHVRIWKHSDUWLHVLQYROYHGWKDWLV
WKHIDFWWKDW%HQLJQR$TXLQR-UZDVDPHPEHURIWKH6HQDWHDQGDNQRZQOHDGHURIWKH2SSRVLWLRQDWWKHWLPH
PDUWLDOODZZDVSURFODLPHGDQGWKDW3UHVLGHQW)HUGLQDQG(0DUFRVEHOLHYHVLQWKH5XOHRI/DZQRWZLWKVWDQGLQJ
PDUWLDOUXOH,DPFDOOHGXSRQDWWKLVPRPHQWWROD\GRZQDSULQFLSOHRIODZZKLFKZLOOGHFLGHWKHIDWHQRWRQO\RI
WKHSUHVHQWJHQHUDWLRQEXWDOVRWKDWRI)LOLSLQRVVWLOOWREHERUQ)RUWKHPDLQTXHVWLRQQRZDWVWDNH²ZKHWKHURU
QRW PLOLWDU\ WULEXQDOV FDQ WU\ DQG UHQGHU D YHUGLFW RQ FLYLOLDQV IRU RIIHQVHV DOOHJHGO\ FRPPLWWHG EHIRUH RU HYHQ
GXULQJ PDUWLDO UXOH QRWZLWKVWDQGLQJ WKH IDFW WKDW FLYLO DXWKRULW\ LV VXSUHPH DQG FLYLO FRXUWV DUH H[LVWLQJ DQG
IXQFWLRQLQJ LV VXSUHPH DQG FLYLO FRXUWV DUH H[LVWLQJ DQG IXQFWLRQLQJ XQGHU WKH &RQVWLWXWLRQ ² UDLVHV EHIRUH P\
H\HVWKHJUXHVRPHVSHFWUHRIRQHDKXQGUHGDWKRXVDQGFLYLOLDQ)LOLSLQRVEHLQJGUDJJHGE\WKHPLJKW\DUPRI
WKHPLOLWDU\EHIRUHLWVRZQFUHDWHGDQGPDQQHGWULEXQDOVFRPPLVVLRQVHWFIRURIIHQVHVUHDORULPDJLQDU\DQG
WULHGDQGVHQWHQFHGZLWKRXWWKHFRQVWLWXWLRQDOVDIHJXDUGVDWWHQGDQWWRDWULDOE\FLYLOFRXUWVVHHSDJHVRI
-XVWLFH7HHKDQNHH
V2SLQLRQIRUWKHVHVDIHJXDUGV7UXHLWLVWKDWWKHSLFWXUH,FRQMXUHEHIRUHPHPD\QRWWDNH
SODFHDWDOOXQGHUWKHSUHVHQWGLVSHQVDWLRQEHFDXVH3UHVLGHQW)HUGLQDQG(0DUFRVDV&RPPDQGHULQ&KLHIRI
WKH$UPHG)RUFHVLVFRPPLWWHGWRXSKROGWKH&RQVWLWXWLRQDQGDVTXRWHGE\-XVWLFH7HHKDQNHHEHOLHYHVLQWKH
SURWHFWLRQRIWKH%LOORI5LJKWVVHHSDJHRI-XVWLFH7HHKDQNHH
V2SLQLRQ%XWZKDWDERXWWRPRUURZDQGWKH
GD\DIWHUWRPRUURZZKHQZHVKDOODOOEHJRQHDQGWKHSROLWLFDODWPRVSKHUHGLIIHUHQW"/HJDOSUHFHSWVZKLFKDUHWR
SURWHFWWKHEDVLFIXQGDPHQWDOULJKWVDQGOLEHUWLHVRIDQLQGLYLGXDOPXVWEHODLGGRZQQRWRQO\IRUWKHSUHVHQWEXW
IRUDOOWLPHVDQGIRUDOOFRQGLWLRQV7KH%LOORI5LJKWVPXVWUHPDLQILUPLQGHVWUXFWLEOHDQGXQ\LHOGLQJWRDOOIRUPVRI
SUHVVXUHIRUOLNH0RXQW6LQDLRI0RVHVLWFDQEHWKHRQO\UHIXJHRIDSHRSOHLQDQ\FUXFLEOHWKH\PD\VXIIHULQWKH
FRXUVHRIWKHLUGHVWLQ\
6HSDUDWH2SLQLRQV
&$6752-FRQFXUULQJDQGGLVVHQWLQJ
,DPFRQVWUDLQHGWRZULWHWKLVFRQFXUULQJDQGGLVVHQWLQJRSLQLRQEHFDXVHDDOWKRXJK,VXEVWDQWLDOO\DJUHHZLWK
-XVWLFH)HOL[4$QWRQLR
VIRUWKULJKWGLVFXVVLRQDQGOHDUQHGUHVROXWLRQRIWKHLQHVFDSDEOHLVVXHVSRVHGE\WKH
SHWLWLRQDQGWKHVXSSOHPHQWDOSHWLWLRQVILOHGE\WKHSHWLWLRQHU%HQLJQR6$TXLQR-U,GLVDJUHHZLWKKLV
DSSUREDWLRQRIWKHULJKWRIWRWDOZDLYHUFODLPHGE\WKHSHWLWLRQHUDQGE,GHVLUHWRH[SUHVVP\YLHZVRQ
PDWWHUVZKLFKDOWKRXJKLQDVHQVHSHULSKHUDODQGQRWVTXDUHO\LQLVVXHDUHQHYHUWKHOHVVFRJHQWDQGSHUWLQHQWWR
WKHFHQWUDOLVVXHVDWEDU
$WWKHWKUHVKROG,PXVWVWDWHWKDW,YRWHGWRGHQ\WKHSHWLWLRQHU$TXLQR
VPRWLRQWRZLWKGUDZKLVSHWLWLRQVDQGDOO
UHODWHGPRWLRQVDQGLQFLGHQWVIRUWKHVHOIVDPHUHDVRQVWKDWLPSHOOHGP\YRWHWRGHQ\-RVH:'LRNQR
VPRWLRQ
WRZLWKGUDZKLVSHWLWLRQLQWKH0DUWLDO/DZFDVHV$TXLQRHWDOYV(QULOHHWDO/DQGRWKHUDOOLHGFDVHV
/LNHLQWKHFDVHVMXVWDGYHUWHGWRWKHUHDUHLQWKHFDVHDWEDUFRQVLGHUDWLRQVDQGLVVXHVRIWUDQVFHQGHQWDODQG
JUDYHLPSRUWDQG,DSSUHKHQGWKDWJUHDWGLVVHUYLFHPD\EHFDXVHGWRWKHQDWLRQDOLQWHUHVWLIWKHVHDUHQRW
UHVROYHGRQWKHPHULWV
,DPKDUGSXWWRXQGHUVWDQGKRZDQGZK\WKHSHWLWLRQHU
VFRXQVHOVFRQMXUHGWKHDUJXPHQWWKDWXQGHUWKH%LOORI
5LJKWVWKHGXHSURFHVVDFFRUGHGWRSHUVRQVDFFXVHGLQFULPLQDOFDVHVFRQWHPSODWHVRQO\MXGLFLDOSURFHVV7KLV
DUJXPHQWUXQVVTXDUHO\DWKZDUWWKHWLPHKRQRUHGGRFWULQHLQWKH3KLOLSSLQHVDVZHOODVLQWKH8QLWHG6WDWHV²D
GRFWULQHWKDWWKHSHWLWLRQHU
VFRXQVHOVPXVWVXUHO\EHDZDUHRIWKDWGXHSURFHVVLQFULPLQDOWULDOVPD\FRPSUHKHQG
QRWRQO\MXGLFLDOSURFHVVEXWDOVRH[HFXWLYHSURFHVVDQGHYHQOHJLVODWLYHSURFHVVLQWKHSURSHUFDVHV
&RUROODULO\WRWKLVFRQWHQWLRQRIWKHSHWLWLRQHUWKHIXUWKHUWKHVLVLVDGYDQFHGWKDWKLVWULDOE\DPLOLWDU\
FRPPLVVLRQGHQLHVKLPGXHSURFHVVEHFDXVHKHLVGHSULYHGRIWKHULJKWRIDSSHDO,WVHHPVUDWKHUHOHPHQWDU\
WKDWWKHULJKWRIDSSHDOXQOHVVWKH&RQVWLWXWLRQH[SUHVVO\JXDUDQWHHVVXFKULJKWLVPHUHO\VWDWXWRU\DQGPD\EH
ZLWKGUDZQPRGLILHGRUDOWHUHGDWDQ\WLPH²DSULQFLSOHWKDWKLVFRXQVHOVNQRZRQO\WRRZHOO(YHQDQDSSHDOWR
DQLQWHUPHGLDWHFROOHJLDWHDSSHOODWHFRXUWRUWRWKH6XSUHPH&RXUWLVQRWDULJKWXQGHUWKH&RQVWLWXWLRQXQOHVVDQ
H[SOLFLWJXDUDQWHHFDQEHIRXQGLQWKHZRUGVWKHUHRI
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
$QGDVIDUDVDSSHDOLVFRQFHUQHGLWLVDSSDUHQWWKDWWKHSHWLWLRQHU
VFRXQVHOVDUHQRWDZDUHRIWKHQXPEHURIWKH
OHYHOVRIUHYLHZRIDGHFLVLRQRIFRQYLFWLRQE\DPLOLWDU\FRPPLVVLRQLQRXUMXULVGLFWLRQ)RXUOHYHOVRIUHYLHZ
HTXLYDOHQWWRIRXUOHYHOVRIDXWRPDWLFDSSHDODUHSURYLGHGQDPHO\WKHILUVWUHYLHZE\WKH6WDII-XGJH$GYRFDWH
RIWKH&KLHIRI6WDIIZKRDSSRLQWVWKHPLOLWDU\FRPPLVVLRQWKHVHFRQGUHYLHZE\D%RDUGRI5HYLHZRIQRWOHVV
WKDQWKUHHVHQLRURIILFHUVRIWKH-XGJH$GYRFDWH*HQHUDO
V6HUYLFHWKHWKLUGUHYLHZE\D%RDUGRI5HYLHZRIQRW
OHVVWKDQWKUHHVHQLRURIILFHUVRIWKH-XGJH$GYRFDWH*HQHUDO
V6HUYLFHWKHWKLUGUHYLHZE\D%RDUGRI0LOLWDU\
5HYLHZDFWLQJIRUWKH6HFUHWDU\RI1DWLRQDO'HIHQVHDQGFRQVLVWLQJRIQRWOHVVWKDQWZRODZ\HURIILFHUVRIDWOHDVW
ILHOGUDQNDQGWKHIRXUWKDQGILQDOUHYLHZE\WKH6HFUHWDU\RI-XVWLFHIRUWKH3UHVLGHQWRIWKH3KLOLSSLQHVDV
&RPPDQGHULQ&KLHI7KHVHIRXUUHYLHZVDUHFRPSXOVRU\QRQHRIWKHPPD\EHE\SDVVHGRUGLVSHQVHGZLWK$QG
HYHQLIWKH6WDII-XGJH$GYRFDWHWKH%RDUGRI5HYLHZDQGWKH%RDUGRI0LOLWDU\5HYLHZDOOFRQFXULQWKH
MXGJPHQWRIFRQYLFWLRQDQGWKHVHQWHQFHLPSRVHGE\WKHPLOLWDU\FRPPLVVLRQWKH6HFUHWDU\RI-XVWLFHPD\\HWLI
LQKLVRSLQLRQWKHHYLGHQFHVRZDUUDQWVUHFRPPHQGWRWKH3UHVLGHQWWKHDFTXLWWDORUH[RQHUDWLRQRIWKHDFFXVHG
6RWKDWIURPDUUDLJQPHQWE\DPLOLWDU\FRPPLVVLRQWRILQDODFWLRQE\WKH3UHVLGHQWDPLQLPXPRIWKLUWHHQ
SUHVXPSWLYHO\UHVSRQVLEOHLQGLYLGXDOVLQGLIIHUHQWFDSDFLWLHVDUHLQYROYHGLQWKHHQWLUHSURFHVVDPLOLWDU\
FRPPLVVLRQRIQRWOHVVWKDQILYHPHPEHUVD6WDII-XGJH$GYRFDWHD%RDUGRI5HYLHZRIQRWOHVVWKDQWKUHH
RIILFHUVD%RDUGRI0LOLWDU\5HYLHZRIQRWOHVVWKDQWZRRIILFHUVWKH6HFUHWDU\RI-XVWLFHDQGWKH3UHVLGHQW,
FDQQRWDFFHSWWKHSHWLWLRQHU
VLQIHUHQWLDOFRQFOXVLRQWKDWDOOWKHWZHOYHSHUVRQVLQYROYHGEHIRUHWKH3UHVLGHQW
WDNHVILQDODFWLRQFDQEHGLFWDWHGWRDVVXPLQJWKDWWKH3UHVLGHQWLVPLQGHGWRLQIOXHQFHWKHP7KHSHWLWLRQHUPD\
QRWEHDZDUHZKDWWKHPLOLWDU\FRPPLVVLRQQRZH[LVWLQJKDYHDFTXLWWHGPDQ\ZKRKDYHEHHQDFFXVHGEHIRUH
WKHPDQGWKDWFRQYLFWLRQVKDYHEHHQUHYHUVHGRUPRGLILHGXSRQWKHUHFRPPHQGDWLRQRIWKHUHYLHZLQJRIILFHUV
DQGERDUGVRIRIILFHUV
7KHSHWLWLRQHUPDNHVWKHLQGLFWPHQWWKDWWKHPLOLWDU\WULEXQDOVDQGWKHHQWLUH-XGLFLDU\DUHWRSDUDSKUDVHKLP
ZHOOXQGHUWKHWKXPERIWKH3UHVLGHQWRIWKH3KLOLSSLQHV,TXRWHKLVH[DFWZRUGV0U0DUFRVLVWKHVLQJOHJHQLXV
FRPSRVLQJDQGGLUHFWLQJDOOWKHSURFHHGLQJVZKHWKHULQWKHPLOLWDU\WULEXQDORULQWKHFLYLOFRXUWV>DQG@KDV
GHVWUR\HGWKHLQGHSHQGHQFHRIWKHFLYLOFRXUWV7ULDOVE\FLYLOFRXUWVZRXOGVWLOOEHDWUDYHVW\RIMXVWLFH7KLV
DFFXVDWLRQLVGRXEWOHVVYHU\VHULRXVEXW,VD\WKDWLWLVDJUDYHO\LUUHVSRQVLEOHRQH7RGHFODUHRULPSO\WKDWWKH
HQWLUH-XGLFLDU\IURPWKH&KLHI-XVWLFHDQG$VVRFLDWH-XVWLFHVRIWKH6XSUHPH&RXUWGRZQWRWKHODVWPXQLFLSDO
MXGJHLVXQGHUGLFWDWLRQE\WKH3UHVLGHQWLVDQLQGLFWPHQWWKDWFDQFRPHRQO\IURPDSHUVRQZKRGRHVQRWNQRZ
ZKHUHRIKHVSHDNV,IWKHSHWLWLRQHUKDVQRIDLWKLQPLOLWDU\MXVWLFHDQGDWWKHVDPHWLPHSURIHVVHVDEVROXWHODFNRI
IDLWKLQWKH-XGLFLDU\GRHVWKLVPHDQWKDWWKHSHWLWLRQHULVVRPDJLFDOO\HQGRZHGWKDWRQO\KHDQGKHDORQHLV
FDSDEOHRIPHWLQJRXWMXVWLFHLQWKLVFRXQWU\"7KHRYHUDOOZRUNORDGRIDOOWKHFRXUWVLQWKH3KLOLSSLQHVKDV
LQFUHDVHGLPPHDVXUDEO\,IWKLVGRHVQRWLQGXELWDEO\LQGLFDWHWKHIDLWKRIWKHSHRSOHLQWKH-XGLFLDU\WKHQ,GRQRW
NQRZZKDWGRHV,IWKHSHWLWLRQHUGRHVQRWVKDUHWKHIDLWKRIWKHSHRSOHLQWKH-XGLFLDU\ZHPXVWORRNWRUHDVRQV
RWKHUWKDQWKHRVWHQVLEOHRQHVIRUKLVLUUHVSRQVLEOHDQGUHSUHKHQVLEOHVWDWHPHQWV7RP\PLQGWKHVHUHDVRQVDUH
REYLRXVDQGQHHGQRWEHEHODERUHG
2QWKHPDWWHURIZKHWKHUWKHSHWLWLRQHUKDVZKDWKHFODLPVLVDULJKWRIWRWDOZDLYHURIKLVSUHVHQFHLQWKH
SURFHHGLQJVEHIRUHWKHPLOLWDU\FRPPLVVLRQ,FRQIHVVWKDWWKHEDVLVIRUVXFKYLHZHVFDSHVPH7KHWURXEOHZLWK
WKHDGYRFDF\RIWKHVRFDOOHGULJKWRIWRWDOZDLYHULVWKDWLWSODFHVXQGXHDQGLQRUGLQDWHVWUHVVRQWKHULJKWVRI
WKHLQGLYLGXDODQGFRPSOHWHO\UHIXVHVWRUHFRJQL]HWKDWWKH6WDWHWRRKDVLWVRZQULJKWVDQGGXWLHV,GRQRW
EHOLHYHWKDWWKHUHFDQEHDQ\GHEDWHRQWKHULJKWDQGREOLJDWLRQRIWKH6WDWHWRDGPLQLVWHUMXVWLFHSURSHUO\3DUW
DQGSDUFHORIWKLVULJKWDQGREOLJDWLRQLVWKHULJKWRIDWULEXQDOZKHWKHUMXGLFLDORUH[HFXWLYHWRVDWLVI\LWVHOIWKDWWKH
SHUVRQZKRPLWPD\ODWHUFRQYLFWXSRQWKHHYLGHQFHLVWKHDFFXVHGSRLQWHGWRE\WKHH\HZLWQHVVHVIRUWKH
SURVHFXWLRQ%HFDXVHLIWKHZLWQHVVHVSRLQWWR;DQGWKHDFFXVHGDFWXDOO\KDSSHQVWREH<WKHFRXUWRIWULEXQDO
KDVLQFRQVFLHQFHQRUHFRXUVHEXWWRDEVROYH<)RUWKHSURSHULGHQWLILFDWLRQRIWKHDFFXVHGLVWKHYHU\
TXLQWHVVHQFHDQGVLQHTXDQRQRIDQ\YDOLGSURVHFXWLRQLVWKHYHU\IXQGDPHQWDORIGXHSURFHVVLQDQ\FULPLQDO
WULDO6XUHO\LIWKHFRPPLVVLRQLVWRGLVFKDUJHLWVEXUGHQFRQVFLHQWLRXVO\LWFDQQRWEHGHQLHGWKHULJKWWR
GHWHUPLQHIRULWVHOIWKHSURSHULGHQWLW\RIWKHSHUVRQZKRVWDQGVDFFXVHGEHIRUHLW7KLVULJKWKDVDEVROXWHSULPDF\
RYHUZKDWWKHSHWLWLRQHUFDOOVKLVULJKWRIWRWDOZDLYHURIKLVSUHVHQFH
2IFRXUVHLQWKLVSDUWLFXODUFDVHRIWKHSHWLWLRQHULWFRXOGEHDUJXHGWKDWKHLVDQDWLRQDOILJXUHDQGWKHUHIRUHLV
NQRZQE\HYHU\ERG\%XW,FKDOOHQJHWKHFRUUHFWQHVVRIWKLVSRVWXODWH)RUFDQLWQRWSRVVLEO\KDSSHQWKDWD
PHPEHURIWKHWU\LQJWULEXQDOPD\KDYHKHDUGRI%HQLJQR6$TXLQR-UWKHIRUPHU*RYHUQRURI7DUODFDQG
IRUPHU6HQDWRUEXWPD\KDYHQHYHUDFWXDOO\VHHQKLPEHIRUH",GHQWLILFDWLRQLVHVVHQWLDOO\RQHRISHUFHSWLRQRI
VLJKWDQGQRWDSURFHVVRILQIHUHQFHRUVWUDLQHGGHGXFWLYHUHDVRQLQJ,WPD\EHFRUUHFWWRLQIHUIURPWKH
GHFODUDWLRQVLQFRXUWRIZLWQHVVHVIRUWKHSURVHFXWLRQZKRUHIHUWRD%HQLJQR6$TXLQR-UIRUPHU*RYHUQRURI
7DUODFDQGIRUPHU6HQDWRUWKDWWKHSHUVRQUHIHUUHGWRLVWKHSHWLWLRQHUEXWWKLVFDQQRWWKHUHE\IRUHFORVHWKH
SHWLWLRQHUIURPODWHUFKDOOHQJLQJWKHYDOLGLW\RIKLVFRQYLFWLRQLIKHLVFRQYLFWHGXSRQWKHJURXQGWKDWQRWRQHRI
WKHSURVHFXWLRQZLWQHVVHVSRLQWHGWRKLPDVWKHLQGLFWHG%HQLJQR6$TXLQR-U
0\XQGHUVWDQGLQJRIWKHSURYLVLRQVRIWKHQHZ&RQVWLWXWLRQRQZDLYHURISUHVHQFHLQFULPLQDOSURFHHGLQJVLVWKDW
VXFKZDLYHUPD\EHYDOLGO\LPSOLHGSULQFLSDOO\LQFDVHVZKHUHWKHDFFXVHGKDVMXPSHGEDQRUKDVHVFDSHGEXW
FHUWDLQO\PD\QRWKHDVVHUWHGDVDPDWWHURIDEVROXWHULJKWLQFDVHVZKHUHWKHDFFXVHGLVLQFXVWRG\DQGKLV
LGHQWLILFDWLRQLVQHHGHGLQWKHFRXUVHRIWKHSURFHHGLQJV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
$QGZKDWRIWKHUHYLHZVWREHFRQGXFWHGE\WKH6WDII-XGJH$GYRFDWHRIWKH&KLHIRI6WDIIWKH%RDUGRI5HYLHZ
WKH%RDUGRI0LOLWDU\5HYLHZDQGWKH6HFUHWDU\RI-XVWLFH",VLWQRWWKHERXQGHQGXW\RIWKHVHLQGLYLGXDOVVLQJO\
DQGFROOHFWLYHO\WRVDWLVI\WKHPVHOYHVEH\RQGFDYLODWWKHRXWVHWRIUHYLHZWKDWWKHSHUVRQFRQYLFWHGE\WKH
FRPPLVVLRQLVWKHDFFXVHGQDPHGLQWKHFKDUJHVDQGWKDWKHZDVLGHQWLILHGSURSHUO\E\WKHH\HZLWQHVVHVIRUWKH
SURVHFXWLRQ"
7KXV,YRWHGIRUTXDOLILHGZDLYHUWKHDFFXVHGPD\YDOYHKLVSUHVHQFHLQWKHFULPLQDOSURFHHGLQJVH[FHSWDWWKH
VWDJHVZKHUHLGHQWLILFDWLRQRIKLVSHUVRQE\WKHSURVHFXWLRQZLWQHVVHVLVQHFHVVDU\,PLJKWDJUHHWRWKH
SURSRVLWLRQRIWRWDOZDLYHULQDQ\FDVHZKHUHWKHDFFXVHGDJUHHVH[SOLFLWO\DQGXQHTXLYRFDOO\LQZULWLQJVLJQHGE\
KLPRUSHUVRQDOO\PDQLIHVWVFOHDUO\DQGLQGXELWDEO\LQRSHQFRXUWDQGVXFKPDQLIHVWDWLRQLVUHFRUGHGWKDW
ZKHQHYHUDSURVHFXWLRQZLWQHVVPHQWLRQVDQDPHE\ZKLFKWKHDFFXVHGLVNQRZQWKHZLWQHVVLVUHIHUULQJWRKLP
DQGWRQRRQHHOVH
:KDWLVGLVWXUELQJLVWKDWEHFDXVHVL[-XVWLFHVYRWHGIRUWRWDOZDLYHUDQGRQO\ILYH-XVWLFHVYRWHGIRUTXDOLILHG
ZDLYHUWKHMXGJHVRIDOOLQIHULRUFRXUWVZRXOGQRZEHDWDORVVWRGHWHUPLQHLQDQ\JLYHQVLWXDWLRQZKHWKHUWRWDNH
WKHWRWDOZDLYHUSRVLWLRQRUIROORZWKHTXDOLILHGZDLYHUGRFWULQH²XQOHVVLWEHFRQFHGHGWKDWEHFDXVHWKH&RXUWLV
GLYLGHGDQGWKHWRWDOZDLYHUWKHRU\IDLOVWRFRPPDQGWKHDVVHQWRIHLJKW-XVWLFHVWKHTXDOLILHGZDLYHUWKHRU\
PXVWEHUHJDUGHGDVGRFWULQDOODZ2WKHUZLVHHDFKMXGJHVKRXOGEHOHIWWRGHWHUPLQHDFFRUGLQJWRKLV
FRQVFLHQFHDQGWKHPLOLHXRIHDFKFDVHZKDWWRGRLQRUGHUWRDGPLQLVWHUMXVWLFHSURSHUO\
$FTXLWWDORQDPLVWDNHQLGHQWLW\EDVLVKDVRFFXUUHGLQQXPEHUOHVVLQVWDQFHVDOORYHUWKHZRUOG:KLOHLWLVWUXHWKDW
WKH5XOHVRI&RXUWSURYLGHWKDWLGHQWLW\RIQDPHPHDQVLGHQWLW\RISHUVRQLWLVDZHOONQRZQIDFWLQWKLVFRXQWU\
WKDWWKHUHDUHQDPHVVRFRPPRQWKDWPDQ\SHUVRQVFDUU\WKHVDPHQDPH(VSHFLDOO\FRQVLGHULQJWKDWRXU
SRSXODWLRQKDVEXUJHRQHGFRQVLGHUDEO\QRRQHFDQGHQ\WKDWWKHUHDUHPDQ\SHUVRQVE\WKHQDPH-RVH&UX]
PDQ\E\WKHQDPH-RVH6DQWRVPDQ\E\WKHQDPH-RVH5H\HVDGLQILQLWXP
ZKLFKLVJRRGHQRXJKUHDVRQZK\
WKH3UHVLGHQWRIWKH,QWHJUDWHG%DUUHWLUHG6XSUHPH&RXUW-XVWLFH-RVH%/5H\HVKDVIRXQGLWQHFHVVDU\WRSXW
WKHOHWWHUV%DQG/EHWZHHQWKHQDPHV-RVHDQG5H\HVDQGZK\,KDYHXVHGWKHQDPH5XL]LQP\QDPH
LQRUGHUWKDWP\LGHQWLW\ZLOOQRWEHFRQIXVHGZLWKWKRVHRIWZRRWKHUSHUVRQVZKRDUHNQRZQE\WKHQDPH)UHG
&DVWUR
'XULQJWKHGHOLEHUDWLRQVRQWKLVFDVHWKHUHFDPHWRWKHDWWHQWLRQRIWKH&RXUWUXPRUVDQGDPRUSKRXVELWVRI
QHZVWRWKHHIIHFWWKDWWKHSHWLWLRQHUZDVRQWKHYHUJHRIGHDWKEHFDXVHRIKLVKXQJHUVWULNH&XULRXVO\DQG
RGGO\HQRXJKQRQHRIWKRVHZKRSXUYH\HGWKHUXPRUVHYHUWKRXJKWRIVXEPLWWLQJWRWKH&RXUWDVWDWHPHQWIURP
WKH6HFUHWDU\RI1DWLRQDO'HIHQVHDVWRWKHVWDWHRIKHDOWKRIWKHSHWLWLRQHU$QGEHFDXVHRIWKLVWKHUHZDVD
IHHOLQJRQWKHSDUWRIWKHPHPEHUVRIWKH&RXUWWKDWWKH\ZHUHEHLQJVWDPSHGHGLQWRGHFLGLQJWKLVFDVHRQWKH
EDVLVRIWKHSHWLWLRQHU
VKXQJHUVWULNH$VIDUDV,DPFRQFHUQHG,GLGQRWWKLQNLWDGYLVDEOHIRUWKH&RXUWWR
UHTXHVWWKH6HFUHWDU\RI1DWLRQDO'HIHQVHIRUVXFKVWDWHPHQWEHFDXVH,DVVXPHGWKDWLIWKHSHWLWLRQHUZHUH
LQGHHGLQDVWDWHZKHUHKLVGHDWKZDVLPPLQHQWKLVFRXQVHOVZRXOGKDYHFRPHIRUZDUGZLWKDODFULW\WRLQIRUPWKH
&RXUWDFFRUGLQJO\DQGWKLVLQVSLWHRIWKHSHWLWLRQHU
VPRWLRQWRZLWKGUDZZKLFKDWWKHWLPHWKHUXPRUVUHDFKHGWKH
&RXUWZDVVWLOOXQUHVROYHG7RDUJXHWKDWEHFDXVHWKHSHWLWLRQHUKDGDOUHDG\ILOHGKLVPRWLRQWRZLWKGUDZWKHUH
ZDVQRPRUHQHHGIRUKLVFRXQVHOVWRJLYHWKH&RXUWLQIRUPDWLRQUHJDUGLQJKLVVXSSRVHGO\GHWHULRUDWLQJKHDOWKLV
WRDVVXPHHUURQHRXVO\WKDWWKH&RXUWZRXOGJUDQWKLVPRWLRQ
,KHUHPDNHRIUHFRUGP\FRQVLGHUHGYLHZWKDWWKHSHWLWLRQHUKDVGHOLEHUDWHO\DQGFDOFXODWLQJO\WULHGWRXWLOL]H
WKH&RXUWDVDIRUXPIRUKLVSURSDJDQGD)LUVWKHVDLGKHSUHIHUUHGWULDOE\WKHFLYLOFRXUWVWRWULDOE\DQ\PLOLWDU\
WULEXQDOEXWLQWKHQH[WEUHDWKKHGHQRXQFHGWKHFLYLOFRXUWVDVODFNLQJLQLQGHSHQGHQFH7KHQKHILOHGDSHWLWLRQ
ZLWKWKH&RXUWWRVWRSWKHSURFHHGLQJVEHIRUHWKHPLOLWDU\WULEXQDOVKRUWO\WKHUHDIWHUKHPRYHGWRZLWKGUDZLW
VD\LQJWKDWKLVUHPHGLHVKDGFRPHWRROLWWOHDQGWRRODWH1H[WKHUHQRXQFHGWKHVHUYLFHVRIDOOKLVFRXQVHOV
FLYLOLDQDQGPLOLWDU\\HWKLVODZ\HUVFRQWLQXHGWRILOHSOHDGLQJVLQKLVEHKDOIZLWKWKH&RXUWYLVLWKLPLQKLVTXDUWHUV
DQGDVVLVWKLPLQWKHSHUSHWXDWLRQSURFHHGLQJVEHIRUHWKHPLOLWDU\FRPPLVVLRQ7KHQKLVODZ\HUVILOHGD
PDQLIHVWDWLRQZLWKWKH&RXUWFODLPLQJWKDWWKHPLOLWDU\FRPPLVVLRQ
VGHFLVLRQWRFRPSHOKLPWRDSSHDUZDVIRUWKH
SXUSRVHRIGHKXPDQL]LQJDQGKXPLOLDWLQJKLPEXWZKHQWKH&RXUWDFWLQJRQKLVPDQLIHVWDWLRQUHVWUDLQHGWKH
PLOLWDU\FRPPLVVLRQKHGLUHFWHGKLVODZ\HUVWRZLWKGUDZKLVSHWLWLRQVEHIRUHWKH&RXUWLQFOXGLQJKLVSUD\HUIRUD
WHPSRUDU\UHVWUDLQLQJRUGHU+HLQIRUPHGWKHQHZVSDSHUVWKDWKLVKXQJHUVWULNHZDVDSURWHVWDJDLQVWKLV
FRPSHOOHGSUHVHQFHLQWKHSHUSHWXDWLRQSURFHHGLQJVEXWZKHQVL[-XVWLFHVRIWKH&RXUWYRWHGIRUKLVULJKWWR
WRWDOZDLYHURIKLVSUHVHQFHKHDQQRXQFHGWKDWKHZRXOGDWWHQGWKHSURFHHGLQJV$OORIWKHVHGHYHORSPHQWV
FRXOGLQGHHGEHUHDGWRPHDQRQHRUERWKRIWZRWKLQJVWKDWKLVKXQJHUVWULNHZDVDIWHUDOOSHUKDSVQRWTXLWH
ZKDWLWSXUSRUWHGWREHDQGRUWKDWKHKDVEHHQWULIOLQJDQGFRQWLQXHVWRWULIOHZLWKWKHPLOLWDU\FRPPLVVLRQDQGZLWK
WKH&RXUW
,I,ZHUHWKHSHWLWLRQHUDQG,NQRZ,DPLQQRFHQWWKHUHZRXOGDSSHDUWREHQRUHDVRQIRUPHQRWWRIDFHWKH
SURFHHGLQJVIURQWDOO\DQGHVWDEOLVKP\LQQRFHQFH7KLVLVQRWWRLPSO\WKDWWKHSHWLWLRQHULVJXLOW\RIWKHFKDUJHVLW
LVPHUHO\WRVWUHVVWKDWKLVEHKDYLRULVKDUGO\ZKDWSHUFHSWLYHSHRSOHZRXOGH[SHFWIURPDPDQZKRSURIHVVHV
LQQRFHQFH,ILWLVSURSDJDQGDWKDWLVLQWKHEDFNRIWKHKHDGRIWKHSHWLWLRQHU,ZRXOGWKLQNWKDWWKHKLJKHVWTXDOLW\
SURSDJDQGDLQKLVIDYRULVWRHVWDEOLVKKLVLQQRFHQFHRIWKHFKDUJHVVRRQHVWSRVVLEOH
,ZRXOGOLNHWRDGGP\RZQHPSKDVLVWRWKHRSLQLRQZULWWHQE\-XVWLFH$QWRQLRE\VWDWLQJLQFDSVXOHP\
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FRQVLGHUHGYLHZVWKH3UHVLGHQWRIWKH3KLOLSSLQHVE\YLUWXHRIKLVSURFODPDWLRQRIPDUWLDOODZLQVHQVX
VWULFWLRUHZKLFKWKH&RXUWKDVDOUHDG\XSKHOGDVZLWKLQWKHDPELWRIKLVSRZHUVXQGHUWKHDQG
&RQVWLWXWLRQVKDVOLNHZLVHWKHSRZHUWRRUJDQL]HPLOLWDU\FRPPLVVLRQVLQRUGHUWRFDUU\RXWWKHREMHFWLYHVDQG
SXUSRVHVRIPDUWLDOUXOHWKHPLOLWDU\FRPPLVVLRQVFUHDWHGE\DXWKRULW\RIWKHSHUWLQHQWSUHVLGHQWLDOGHFUHHV
DUHOHJDODVZHOODVFRQVWLWXWLRQDODVWKHVDLGSUHVLGHQWLDOGHFUHHVKDYHEHHQH[SUHVVO\PDGHSDUWRIWKHODZRI
WKHODQGE\WKHWUDQVLWRU\SURYLVLRQVRIWKH&RQVWLWXWLRQE\WUDGLWLRQDQGKLVWRU\DVZHOODVE\WKHH[SOLFLW
SURYLVLRQVRIWKHVDLGYDOLGSUHVLGHQWLDOGHFUHHVWKHPLOLWDU\FRPPLVVLRQVVRFUHDWHGKDYHMXULVGLFWLRQWRWU\
FLYLOLDQVIRURIIHQVHVQHFHVVDULO\FRQQHFWHGZLWKWKHREMHFWLYHVRIPDUWLDOODZZKHWKHUWKHVHRIIHQVHVZHUH
FRPPLWWHGSULRUWRWKHLQVWLWXWLRQRIPDUWLDOUXOHRUVXEVHTXHQWWKHUHWRDQGWKLVLQVSLWHRIWKHIDFWWKDWWKHFLYLO
FRXUWVDUHRSHQDQGIXQFWLRQLQJWKHFODLPRIWKHSHWLWLRQHUWKDWEHFDXVHWKHRIIHQVHVZLWKZKLFKKHLVFKDUJHG
ZHUHLQSRLQWRIWLPHDOOHJHGO\FRPPLWWHGSULRUWRWKHGHFODUDWLRQRIPDUWLDOODZWKH\PD\QRWEHWDNHQ
FRJQL]DQFHRIE\DPLOLWDU\FRPPLVVLRQLJQRUHVRQHLQHVFDSDEOHEDVLFIDFWDQGWKLVLVWKDWWKHFULPHVLPSXWHGWR
KLPDUHDPRQJWKHFULPHVWKDWJDYHFDXVHIRUWKHLQVWLWXWLRQRIPDUWLDOUXOHWKHDUJXPHQWRIWKHSHWLWLRQHUWKDW
WKH&RQVWLWXWLRQLQSURYLGLQJIRUGXHSURFHVVLQFULPLQDOWULDOVFDQPHDQRQO\WULDOE\MXGLFLDOFRXUWVQRWRQO\
GHPRQVWUDWHVWKHSHWLWLRQHU
VPLVXQGHUVWDQGLQJRUPLVUHDGLQJRIPLOLWDU\WUDGLWLRQVLQFLYLOL]HGFRXQWULHV
WKURXJKRXWWKHDJHVEXWDVZHOOIRLVWVDQLQWHUSUHWDWLRQRIWKH&RQVWLWXWLRQQRWZDUUDQWHGE\LWVSKUDVHRORJ\
ZHOOLPEHGGHGLQRXUMXULVSUXGHQFHLVWKHUHFRJQLWLRQWKDWMXVWLFHFDQEHDGPLQLVWHUHGIDLUO\E\PLOLWDU\WULEXQDOV
DQGWKHSRZHURIWKH6XSUHPH&RXUWWRUHYLHZGHDWKVHQWHQFHVGRHVQRWLQFOXGHWKHSRZHUWRUHYLHZGHDWK
VHQWHQFHVLPSRVHGE\PLOLWDU\WULEXQDOV
,QYLHZRIDOOWKDW,KDYHDERYHVWDWHGDQGHVSHFLDOO\LQWKHOLJKWRIP\FRQVLGHUHGRSLQLRQWKDWWKHPLOLWDU\
FRPPLVVLRQVQRZLQH[LVWHQFHKDYHMXULVGLFWLRQWRWU\FLYLOLDQVMXGLFLDOUHVWUDLQWHIIHFWLYHO\SUHFOXGHVPHIURP
H[SUHVVLQJP\YLHZVRQZKHWKHUWKH3UHVLGHQWVKRXOGWUDQVIHUWKHFDVHRIWKHSHWLWLRQHUWRDFLYLOFRXUWIRUWULDO
)LQDOO\LWLVP\DELGLQJFRQYLFWLRQWKDWWKH3UHVLGHQWZLOOGRZLWKLQWKHLQWHQGPHQWRIKLVVDFUHGRDWKRIRIILFH
ZKDWKHEHOLHYHVLVMXVWIRUWKHSHWLWLRQHUDQGORJLFDOO\DOVRIRUHYHU\RQHHOVHVLPLODUO\VLWXDWHG
0DNDVLDU(VJXHUUD&RQFHSFLRQ-UDQG0DUWLQ--FRQFXU l Z S K w x s W
)(51$1'2-FRQFXUULQJDQGGLVVHQWLQJ
$VZDVPDGHFOHDUDWWKHRSHQLQJRIWKHOHDUQHGDQGFRPSUHKHQVLYHDEO\SHQQHGGHFLVLRQRIWKH&RXUWWKURXJK
-XVWLFH$QWRQLR,DPIRUWKHJUDQWLQJRISHWLWLRQHU
VPRWLRQIRUZLWKGUDZDO0\EUHWKUHQKDGWKRXJKWRWKHUZLVHDQG
FRQVHTXHQWO\GLGSURFHHGWRGLVFXVVWKHPHULWVRIWKHLVVXHVUDLVHG:KLOHDJDLQ,ZRXOGYRWHIRUWKHWUDQVIHURI
WKHFULPLQDOFKDUJHVDJDLQVWSHWLWLRQHUWRFLYLOFRXUWVLWGRHVQRWPHDQWKDW,DPLQWRWDOGLVDJUHHPHQW
1RQHWKHOHVVWKHUHPD\EHDQHHGIRUDEULHIH[SUHVVLRQRIRSLQLRQRQP\SDUWDVDPHUHIRUPDOFRQFXUUHQFHRQ
VRPHRIWKHSRLQWVGLVFXVVHGPD\IRUVRPHLPSO\DQLGHQWLW\RIWKRXJKWOXUNLQJGRUPDQWDQGFRQFHDOHG,WLVEHWWHU
WRDYRLGDQ\PLVXQGHUVWDQGLQJ0RUHRYHUDWOHDVWWRP\PLQGLWZRXOGPDNHHYHQPRUHDSSDUHQWWKHWUXWKWKDW
WKHUHFDQEHQRVXFKWKLQJDVFRPSOHWHREMHFWLYLW\LQFRQVWLWXWLRQDOODZDILHOGZKHUHWKHUHDUHQRDEVROXWHV
HYHU\FRQVWLWXWLRQDOTXHVWLRQLQYROYLQJDEDODQFLQJRIFRPSHWLQJYDOXHV,WPD\DOVRVHUYHKRSHIXOO\WRLOOXVWUDWH
WKDWRUWKRGR[\LQMXULGLFDOWKRXJKWLVQRWSHUVHDQWLWKHWLFDOWRWKHSURIHVVHGDLPVRIDQLQQRYDWLYHOHJDORUGHU,W
JLYHVPHDQRSSRUWXQLW\OLNHZLVHWRDFNQRZOHGJHWKHQHDWDQGORJLFDOSDWWHUQWRWKHGHFLVLRQWKDWVWUHQJWKHQVLWV
SODXVLELOLW\7KHSULQFLSOHVRIODZDQQRXQFHGIORZIURPWKHEDVLFSUHPLVHRIWKHVWHUQQHFHVVLWLHVRIPDUWLDOODZ
:KDWERWKHUVPHLVWKDWIURPWKHVWDQGSRLQWRIWULHGDQGWHVWHGFRQFHSWVLQFRQVWLWXWLRQDOODZWKHUHZRXOGVHHP
WREHDQHHGIRUIXUWKHUUHILQHPHQWDVWRWKHVFRSHRIVXFKGRFWULQHVDQGIRUFODULI\LQJGLIIHUHQWLDWLRQ7KDWIRUPH
DWOHDVWZRXOGKDYHEHHQGHVLUDEOH7KHDSSUHKHQVLRQLVHQWHUWDLQHGWKDWDVZRUGHGLQDUDWKHUDOOHQFRPDVVLQJ
PDQQHUWKH\PD\\LHOGWKHLPSUHVVLRQRIDWRWDOVXUUHQGHUWRWKHSUHVVXUHRIHYHQWVDQGWKHGHPDQGVRIWKH
WLPHV&DQGRUWKRXJKFRPSHOVWKHDGPLVVLRQWKDWLQWKHILQDODQDO\VLVMXULGLFDOWKHRULHVFDQQRWDIIRUGWREH
LQVHQVLEOHWRSROLWLFDODQGVRFLDOUHDOLWLHV1RZIRUWKHJURXQGVRIP\FRQFXUUHQFHDQGP\GLVVHQW
,QWKHEHOLHIWKDWSHWLWLRQHU
VPRWLRQWRZLWKGUDZVKRXOGEHJUDQWHG,DPFRPSHOOHGWRGLVVHQW7KLVLVZLWKGXH
UHFRJQLWLRQRIWKHSULQFLSOHWKDWWKH&RXUWLVYHVWHGZLWKGLVFUHWLRQWRJUDQWRUUHIXVHVXFKDSOHD7KLV
QRWZLWKVWDQGLQJ,DPIXOO\SHUVXDGHGWKDWWKHPRUHDSSURSULDWHUHVSRQVHLVRQHRIDFFHGLQJWRSHWLWLRQHU
VSUD\HU
WKDWDOOFDVHVILOHGRQKLVEHKDOILQWKLV&RXUWEHWHUPLQDWHG7KHDVVXPSWLRQPXVWEHWKDWEHIRUHKHGLGDUULYHDW
VXFKDFRQFOXVLRQKHKDGZHLJKHGZLWKFDUHDQGFLUFXPVSHFWLRQDOOWKHUHOHYDQWDVSHFWVRIWKHVLWXDWLRQ,WFRXOG
YHU\ZHOOEHWKDWKHZDVSURPSWHGWRWDNHVXFKDPRYHWRDYRLGIXUWKHUDQ[LHW\DQGZRUU\RQKLVSDUWFRQVLGHULQJ
WKDWWKHXOWLPDWHRXWFRPHFRXOGEHOLHH[SHFWDWLRQVDQGIUXVWUDWHKRSHV$WDQ\UDWHZLWKKLVPLQGWKXVPDGHXS
DQGZLWKRXWDQ\FRPSHOOLQJUHDVRQLQP\PLQGIRUWKH&RXUWWRNHHSWKHFDVHLQWKHGRFNHWWKHGLVFUHWLRQVKRXOG
EHH[HUFLVHGLQKLVIDYRU1RUGRHVWKHIDFWWKDWKHXVHGUDWKHUKDUVKODQJXDJHLQWKHUHDVRQVJLYHQE\KLPIRUKLV
PRWLRQRIZLWKGUDZDOPLOLWDWHDJDLQVWKLVSOHD7KHUHPXVWEHPRUHXQGHUVWDQGLQJVKRZQIRUWKHVWDWHRIKLV
SK\VLFDODQGPHQWDOKHDOWKDIWHUWKLVORQJSHULRGRIFRQILQHPHQWDQGRIODWHRIKLVGHSULYLQJKLPVHOIRIWKHGDLO\
VXVWHQDQFH:KDWLVPRUHWKHFXWWLQJHGJHRIKLVVKDUSDQGSRLQWHGZRUGVPD\EHEOXQWHGE\WKHSHUIRUPDQFHRI
WKLV&RXUWZKLFKLQWKHXOWLPDWHDQDO\VLVLVWKHXOWLPDWHFULWHULRQDVWRZKHWKHURUQRWLWKDVDGHTXDWHO\GLVFKDUJHG
LWVUHVSRQVLELOLWLHVRUOLYHGXSWRWKHWUXVWUHSRVHGLQLW7KHMXGJPHQWLVIRUWKHHQWLUHFRQVWLWXHQF\RILQIRUPHGDQG
FRQFHUQHGFLWL]HQVQRWRISHWLWLRQHUDORQH$VIRUDQ\LQGLYLGXDO-XVWLFH,ZRXOGDVVXPHWKDWZKDWPDWWHUVPRVWLV
WKHYHUGLFWRIKLVFRQVFLHQFH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
1RZDVWRWKHQDWXUHRIP\FRQFXUUHQFHZKLFKKDVWREHIXUWKHUTXDOLILHG5LJKWDWWKHRXWVHWPD\,PDNHFOHDU
WKDW,MRLQP\EUHWKUHQRQO\WRWKHH[WHQWWKDWWKHFRQFOXVLRQDUULYHGDWE\WKHPFRQIRUPVWRZKDW,KDGSUHYLRXVO\
H[SUHVVHGLQP\VHSDUDWHRSLQLRQVLQ$TXLQRY3RQFH(QULOHDQG$TXLQRY&RPPLVVLRQRQ(OHFWLRQV,WIROORZV
WKDWZKHUHWKHRSLQLRQRIWKH&RXUWUHIOHFWVWKHVWDQG,WRRN,DPLQDJUHHPHQW0RUHVSHFLILFDOO\RQWKHTXHVWLRQRIWKH
VFRSHRIWKHFRPSHWHQFHRIDPLOLWDU\FRPPLVVLRQ,ZRXOGSUHGLFDWHP\YRWHRQWKHFRQVWLWXWLRQDOSURYLVLRQWKDWDIIL[HVWR
*HQHUDO2UGHUV1RVDQGWKHVWDWXVRIEHLQJSDUWRIWKHODZRIWKHODQG:LWKGXHUHFRJQLWLRQRIWKHYLJRUZLWK
ZKLFKFRXQVHOIRUSHWLWLRQHUKDGSUHVVHGWKHSRLQWWKDWVXFKDFKDUDFWHUFDQQRWEHLPSUHVVHGRQWKHDIRUHVDLGJHQHUDO
RUGHUVLIIRXQGLQFRQIOLFWZLWKWKHSUHVHQW&RQVWLWXWLRQ,VWLOOILQGGLIILFXOW\LQDFFRUGLQJFRPSOHWHDFFHSWDQFHWRVXFKDYLHZ
7RGRVRLQP\RSLQLRQZRXOGPHDQFORVLQJRQH
VH\HVWRZKDWZDVLQWHQGHGE\WKH&RQVWLWXWLRQDO&RQYHQWLRQLQVRIDU
DVLWGLGSURYLGHIRUWKHFRQWLQXHGH[LVWHQFHRIDPLOLWDU\FRPPLVVLRQZLWKVXFKSRZHUVDVZHUHWKHQH[HUFLVHG7KLVLVQRW
WRLPSO\WKRXJKWKDWLQQRFDVHPD\D3UHVLGHQWLDOSURFODPDWLRQRUGHUGHFUHHRULQVWUXFWLRQEHFKDOOHQJHGLQDSSURSULDWH
VXLWVIRUODFNRIFRQIRUPLW\WRDVSHFLILFSURYLVLRQIRXQGLQWKHSUHVHQW&RQVWLWXWLRQ
,WLVWREHVWUHVVHGIXUWKHUWKDWZHUHLWQRWIRUWKHDERYHPDQGDWHRIWKH7UDQVLWRU\3URYLVLRQVWKHVXEPLVVLRQRI
SHWLWLRQHUDVWRDPLOLWDU\FRPPLVVLRQEHLQJGHYRLGRIMXULVGLFWLRQRYHUFLYLOLDQVHOLFLWVDSSURYDO7KHFRQWUROOLQJ
SULQFLSOHWRP\PLQGLVWKDWVXSSOLHGLQWKHRSLQLRQRIWKH8QLWHG6WDWHV6XSUHPH&RXUWLQ'XQFDQY
.DKDQDPRNXDGHFLVLRQLPSUHVVHGZLWKWKHJUHDWHVWUHOHYDQFHLQDVPXFKDVLWLQWHUSUHWHGWKHVSHFLILFVHFWLRQIRXQGLQ
WKH+DZDLLDQ2UJDQLF$FWZKLFKZDVDOVRDIHDWXUHRIWKH3KLOLSSLQH$XWRQRP\$FWWKHVRXUFHRIWKHPDUWLDOODZ
SURYLVLRQLQWKH&RQVWLWXWLRQ$VVHWIRUWKLQWKH'XQFDQRSLQLRQSHQQHGE\-XVWLFH%ODFN2XUTXHVWLRQGRHVQRW
LQYROYHWKHZHOOHVWDEOLVKHGSRZHURIWKHPLOLWDU\WRH[HUFLVHMXULVGLFWLRQRYHUPHPEHUVRIWKHDUPHGIRUFHVWKRVHGLUHFWO\
FRQQHFWHGZLWKVXFKIRUFHVRUHQHP\EHOOLJHUHQWVSULVRQHUVRIZDURURWKHUVFKDUJHGZLWKYLRODWLQJWKHODZVRIZDU:HDUH
QRWFRQFHUQHGZLWKWKHUHFRJQL]HGSRZHURIWKHPLOLWDU\WRWU\FLYLOLDQVLQWULEXQDOVHVWDEOLVKHGDVDSDUWRIDWHPSRUDU\
PLOLWDU\JRYHUQPHQWRYHURFFXSLHGHQHP\WHUULWRU\RUWHUULWRU\UHJDLQHGIURPDQHQHP\ZKHUHFLYLOLDQJRYHUQPHQWFDQQRWDQG
GRHVQRWIXQFWLRQ)RU+DZDLLVLQFHDQQH[DWLRQKDVEHHQKHOGE\DQGOR\DOWRWKH8QLWHG6WDWHV1RUQHHGZHKHUHFRQVLGHU
WKHSRZHURIWKHPLOLWDU\VLPSO\WRDUUHVWDQGGHWDLQFLYLOLDQVLQWHUIHULQJZLWKDQHFHVVDU\PLOLWDU\IXQFWLRQDWDWLPHRI
WXUEXOHQFHDQGGDQJHUIURPLQVXUUHFWLRQRUZDU$QGILQDOO\WKHUHZDVQRVSHFLDOL]HGHIIRUWRIWKHPLOLWDU\KHUHWRHQIRUFH
RUGHUVZKLFKUHODWHGRQO\WRPLOLWDU\IXQFWLRQVVXFKDVIRULOOXVWUDWLRQFXUIHZUXOHVRUEODFNRXWV,VHHQRWKLQJLQ0R\HU
Y3HDERG\ WKDWLQDQ\ZD\UXQVFRXQWHUWRWKHDERYHVXPPDU\RIWKHVFRSHRIWKHSRZHURIPLOLWDU\WULEXQDOV7KDWZDVDQDFWLRQDVSRLQWHGRXWE\
-XVWLFH+ROPHVEURXJKWE\WKHSODLQWLIILQHUURUDJDLQVWWKHIRUPHUJRYHUQRURIWKHVWDWHRI&RORUDGRWKHIRUPHUDGMXWDQWJHQHUDORIWKHQDWLRQDOJXDUGRI
WKHVDPHVWDWHDQGDFDSWDLQRIDFRPSDQ\RIWKHQDWLRQDOJXDUGIRUDQLPSULVRQPHQWRIWKHSODLQWLIIE\WKHPZKLOHLQRIILFH 7KHQFDPHWKLV
SRUWLRQRIWKHRSLQLRQ7KHFRPSODLQWDOOHJHVWKDWWKHLPSULVRQPHQWZDVFRQWLQXHGIURPWKHPRUQLQJRI0DUFKWR
WKHDIWHUQRRQRI-XQHDQGWKDWWKHGHIHQGDQWVMXVWLILHGXQGHUWKH&RQVWLWXWLRQRI&RORUDGRPDNLQJWKHJRYHUQRU
FRPPDQGHULQFKLHIRIWKHVWDWHIRUFHVDQGJLYLQJKLPSRZHUWRFDOOWKHPRXWWRH[HFXWHODZVVXSSUHVVLQVXUUHFWLRQDQG
UHSHOLQYDVLRQ,WDOOHJHVWKDWKLVLPSULVRQPHQWZDVZLWKRXWSUREDEOHFDXVHWKDWQRFRPSODLQWZDVILOHGDJDLQVWWKHSODLQWLII
DQGWKDWLQWKDWVHQVHKHZDVSUHYHQWHGIURPKDYLQJDFFHVVWRWKHFRXUWVRIWKHVWDWHDOWKRXJKWKH\ZHUHRSHQGXULQJWKH
ZKROHWLPHEXWLWVHWVRXWSURFHHGLQJVRQKDEHDVFRUSXVLQVWLWXWHGE\KLPEHIRUHWKHVXSUHPHFRXUWRIWKHVWDWHLQZKLFK
WKDWFRXUWUHIXVHGWRDGPLWKLPWREDLODQGXOWLPDWHO\GLVFKDUJHGWKHZULW&ROR3DFDQG&ROR
/5$16$P6W5HS3DF,QWKRVHSURFHHGLQJVLWDSSHDUHGWKDWWKHJRYHUQRUKDGGHFODUHGD
FRXQW\WREHLQDVWDWHRILQVXUUHFWLRQKDGFDOOHGRXWWURRSVWRSXWGRZQWKHWURXEOHDQGKDGRUGHUHGWKDWWKHSODLQWLIIVKRXOG
EHDUUHVWHGDVDOHDGHURIWKHRXWEUHDNDQGVKRXOGEHGHWDLQHGXQWLOKHFRXOGEHGLVFKDUJHGZLWKVDIHW\DQGWKDWWKHQKH
VKRXOGEHGHOLYHUHGWRWKHFLYLODXWKRULWLHVWREHGHDOWZLWKDFFRUGLQJWRODZ3ODLQWLIILQHUURUZRXOGKROGWKH*RYHUQRU
OLDEOHIRUKLVRUGHURIGHWHQWLRQLQWKHFRXUVHRIVXSSUHVVLQJDQLQVXUUHFWLRQ$VWKHFDVHZDVGLVPLVVHGRQGHPXUUHUE\WKH
&LUFXLW&RXUWLWZDVHOHYDWHGWRWKH8QLWHG6WDWHV6XSUHPH&RXUW,QDIILUPLQJWKHMXGJPHQW-XVWLFH+ROPHVFDWHJRULFDOO\
VWDWHG:KHQLWFRPHVWRDGHFLVLRQE\WKHKHDGRIWKHVWDWHXSRQDPDWWHULQYROYLQJLWVOLIHWKHRUGLQDU\ULJKWVRI
LQGLYLGXDOVPXVW\LHOGWRZKDWKHGHHPVWKHQHFHVVLWLHVRIWKHPRPHQW3XEOLFGDQJHUZDUUDQWVWKHVXEVWLWXWLRQRIH[HFXWLRQ
SURFHVVIRUMXGLFLDOSURFHVV6HH.HHO\Y6DQGHUV86/HG7KLVZDVDGPLWWHGZLWKUHJDUGWR
NLOOLQJPHQLQWKHDFWXDOFODVKRIDUPVDQGZHWKLQNLWREYLRXVDOWKRXJKLWZDVGLVSXWHGWKDWWKHVDPHLVWUXHRIWHPSRUDU\
GHWHQWLRQWRSUHYHQWDSSUHKHQGHGKDUP,WGRHVDSSHDUWRPHWKHQDQGWKLV,VD\ZLWKGXHUHVSHFWWKDWLWLVDUDWKHU
IRUFHGLQWHUSUHWDWLRQWRH[WUDFWIURPWKHDERYHH[SOLFLWGHFODUDWLRQRI-XVWLFH+ROPHVWKHPHDQLQJWKDWPLOLWDU\WULEXQDOVDUH
YHVWHGZLWKMXULVGLFWLRQRYHUFLYLOLDQV:KDWZDVLQYROYHGZDVDGHWHQWLRQQRWDWULDO8QGHUWKHYLHZ,HQWHUWDLQWKDW'XQFDQ
Y.DKDQDPRNXVXSSOLHVWKHDSSOLFDEOHSULQFLSOHXQGHUWKH&RQVWLWXWLRQWKHFLWDWLRQVIURP:LQWKURSDQG)DLUPDQIRXQG
LQWKHRSLQLRQRIWKH&RXUWDUHIRUPHOHVVWKDQSHUVXDVLYH:KDWFRPSHOVFRQFXUUHQFHRQP\SDUWWRUHSHDWLVWKHODZ
RIWKHODQGVHFWLRQIRXQGLQWKH7UDQVLWRU\3URYLVLRQV$EVHQWWKDWSURYLVLRQ,ZRXOGEHXQDEOHWR\LHOGWRWKHFRQFOXVLRQ
UHDFKHGE\P\EUHWKUHQRQWKHTXHVWLRQRIMXULVGLFWLRQ
7KHUHFRJQLWLRQLPSOLFLWLQWKHDERYHFRQVWLWXWLRQDOSUHFHSWDVWRWKHFRPSHWHQFHRIDPLOLWDU\FRPPLVVLRQWR
FRQGXFWFULPLQDOWULDOVRIFHUWDLQVSHFLILHGRIIHQVHVWRP\PLQGFDUULHVZLWKLWWKHGXW\WRUHVSHFWDOOWKH
FRQVWLWXWLRQDOULJKWVRIDQDFFXVHG,WLVIURPWKDWSHUVSHFWLYHWKDWDGLVFXVVLRQRIWKHGXHSURFHVVJXDUDQWHH
JDLQVVLJQLILFDQFH,WKDVDFRQQRWDWLRQERWKVXEVWDQWLYHDQGSURFHGXUDO$VWRWKHODWWHUDVSHFWLWLVWUXHWKDWLW
KDVDWLWVFRUHWRIROORZWKHFODVVLFIRUPXODWLRQRI:HEVWHUWKHUHTXLUHPHQWRIDKHDULQJEHIRUHFRQGHPQDWLRQ
DQGDSURFHVVRIUDWLRQDOLQTXLU\EXWLWKDVDPXFKZLGHUUDGLDWLRQH[WHQGLQJWRDOOWKHOHJDOVDIHJXDUGVHQMR\HG
E\DSHUVRQLQGLFWHGIRUDQRIIHQVH6RLWKDVFRPHWREHLQWKH8QLWHG6WDWHVZKHUHLWLVGHHPHGWRLQFOXGHWKH
ULJKWWREHIUHHIURPXQUHDVRQDEOHVHDUFKHVDQGVHL]XUHVDQGWRKDYHH[FOXGHGIURPFULPLQDOWULDOVDQ\HYLGHQFH
LOOHJDOO\VHL]HGWKHULJKWWREHIUHHRIFRPSHOOHGVHOILQFULPLQDWLRQWKHULJKWWRFRXQVHOWKHULJKWWRDVSHHG\
DQGSXEOLF WULDOWRFRQIURQWDWLRQRIRSSRVLQJZLWQHVVHVWRFRPSXOVRU\SURFHVVIRUREWDLQLQJZLWQHVVHVWKHULJKWWR
DMXU\WULDODQGWKHULJKWDJDLQVWGRXEOHMHRSDUG\6XFKDQDSSURDFKLVQRWXQFRQJHQLDOLQRXUMXULVGLFWLRQ$UHODWHG
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
PDWWHULVWKHTXHVWLRQRIGXHSURFHVVDQGSUHOLPLQDU\LQYHVWLJDWLRQ,KDYHP\UHVHUYDWLRQVDVWRWKHWRQHRIFHUWLWXGHLQWKH
RSLQLRQRIWKHFRXUWFRQFHUQLQJWKHODWWHU
VEHLQJEHUHIWRIDQ\FRQVWLWXWLRQDOVLJQLILFDQFH,WZDVWKHUXOLQJLQ3HRSOHY6LHUUD
WKDWWKHSULQFLSOHXQLQWHUUXSWHGO\DGKHUHGWR>LV@WKDWRQO\ZKHUHDQDFFXVHGLVKHOGWRDQVZHUDFULPLQDORIIHQVHLQDQ
DUELWUDU\RURSSUHVVLYHPDQQHULVWKHUHDGLVUHJDUGWKHUHRI7KHUHTXLUHPHQWRIWKHSURFHHGLQJQRWEHLQJXQMXVWRU
XQUHDVRQDEOHPXVWEHPHW7KLVLVQRWWRUXOHRXWFDVHVZKHUHVXFKLQILUPLW\FRXOGEHSUHGLFDWHGRQDVKRZLQJWKDWWKH
GLVUHJDUGRIWKLVSURFHGXUDOVDIHJXDUGGLGLQIHFWWKHSURVHFXWLRQZLWKXQIDLUQHVV,QWKDWVHQVHZKDWZDVKHOGLQ3HRSOHY
0RQWRQDVWRVXFKDIDLOLQJQXOOLI\LQJWKHSURFHHGLQJEHFDXVHRIWKHGXHSURFHVVSURWHFWLRQFRXOGVWLOOEHFRQFHLYDEO\UHOLHG
XSRQ7KXVZHFRPHWRZKDWIRUPHLVWKHFUXFLDOLVVXHSRVHGODEHOHGWKHSULQFLSDOTXHVWLRQLQWKHPHPRUDQGXPRI
SHWLWLRQHU+HZRXOGLQYRNHWKHKLJKO\SUL]HGLGHDOLQDGMXGLFDWLRQDQQRXQFHGLQ*XWLHUUH]OLNHZLVHDGXHSURFHVV
UHTXLUHPHQWWKDWDSDUW\WRDWULDOLVHQWLWOHGWRQRWKLQJOHVVWKDQWKHFROGQHXWUDOLW\RIDQLPSDUWLDOMXGJH+LVIHDUVQRW
GHYRLGRISODXVLELOLW\SURFHHGIURPUHVSRQGHQW&RPPLVVLRQKDYLQJEHHQFUHDWHGE\WKH3UHVLGHQW
V2UGHUDQGVXEMHFWWR
KLVFRQWURODQGGLUHFWLRQEHLQJXQDEOHWRLJQRUHKLVFKDUDFWHUL]DWLRQWKDWWKHHYLGHQFHDJDLQVWSHWLWLRQHUZDVQRWRQO\VWURQJ
>EXW@RYHUZKHOPLQJ,WLVWRWKDWLPSODFDEOHWHQHWRIREMHFWLYLW\DQGQHXWUDOLW\RQHRIFRQVWLWXWLRQDOGLPHQVLRQWKDW
DSSHDOLVPDGH)RU*XWLHUUH]KDVEHHQIROORZHGVXEVHTXHQWO\LQDQXQEURNHQOLQHRIGHFLVLRQVZLWKDQLPSUHVVLYHFRQFRUG
RIRSLQLRQ7KDWIRUSHWLWLRQHULVWREXWWUHVVDVWDQGWKDWPLUURUVWKHUHDOLWLHVWRUHLQIRUFHWKHVROLGLW\RIKLVSRVLWLRQ)RU
ZDVLWQRW6WRHVVLQJHUZKRSRLQWHGRXWWKDWWKHUHPD\EHDWWLPHVDWHQGHQF\GLIILFXOWWRUHVLVWLQVXERUGLQDWHPLOLWDU\
DJHQFLHVWRYLHZPDWWHUVLQWKHOLJKWVXSSOLHGE\SUHYLRXVSURQRXQFHPHQWVRIWKRVHKLJKHUXSLQWKHUDQNVDQGWRUHVSRQGWR
VLWXDWLRQVOHVVRQWKHEDVLVRIHPSLULFDOHYLGHQFHEXWPRUHRQWKDWRIFRQIRUPLW\WRDSRVLWLRQRIILFLDOO\WDNHQ,GRQRWKDYH
WRJRWKDWIDU7KHUHLVDFFHSWDQFHRQP\SDUWWKDWDVWKHRSLQLRQRIWKH&RXUWVWDWHVUHVSRQGHQWPLOLWDU\FRPPLVVLRQPD\
EHWUXVWHGWREHIDLUDQGWKDWDWDQ\UDWHWKHUHDUHVWLOOYDULRXVDSSHDOVLQWKHRIILQJ7KXVWKHUHDUHEXLOWLQGHIHQVHVDJDLQVW
DQ\HUURQHRXVRUXQIDLUMXGJPHQW7KHUHLVKRZHYHUWKLVRWKHUSRLQWWRFRQVLGHU)RUWKH*XWLHUUH]UXOLQJDVQRZLQWHUSUHWHG
GRHVQRWRQO\JXDUGDJDLQVWWKHUHDOLW\EXWOLNHZLVHWKHDSSHDUDQFHRISDUWLDOLW\7KDWZRXOGDUJXHVWURQJO\IRUWKHWUDQVIHURI
WKHWULDORIWKHFULPLQDOFKDUJHVDJDLQVWSHWLWLRQHUWRFLYLOFRXUWV1RUZRXOGKHEHWKHRQO\RQHWKHUHE\EHQHILWHG
5HVSRQGHQW&RPPLVVLRQZRXOGEHVSDUHGIURPSURFHHGLQJZLWKDFDVHZKHUHIURPWKHVWDUWLQYLHZRIWKHSHFXOLDU
FLUFXPVWDQFHVLWVERQDILGHVKDGEHHQRSHQWRTXHVWLRQDOWKRXJKDGPLWWHGO\ODFNLQJIDFWXDOIRXQGDWLRQ7KH3UHVLGHQW
OLNHZLVHZRXOGEHDEVROYHGIURPDQ\DGYHUVHLIXQIRXQGHGFULWLFLVP7KHJUHDWHVWJDLQRIFRXUVHZRXOGEHIRUWKH
DGPLQLVWUDWLRQRIMXVWLFH7KHUHLVUHOHYDQFHWRWKLVH[FHUSWIURP3DODQJY=RVD7KLVYROXQWDU\LQKLELWLRQE\UHVSRQGHQW
-XGJHLVWREHFRPPHQGHG+HKDVOLYHGXSWRZKDWLVH[SHFWHGRIRFFXSDQWVRIWKHEHQFK7KHSXEOLFIDLWKLQWKHLPSDUWLDO
DGPLQLVWUDWLRQRIMXVWLFHLVWKXVUHLQIRUFHG,WLVQRWHQRXJKWKDWWKH\GHFLGHFDVHVZLWKRXWELDVDQGIDYRULWLVP,WGRHVQRW
VXIILFHWKDWWKH\LQIDFWULGWKHPVHOYHVRISUHSRVVHVVLRQV7KHLUDFWXDWLRQPXVWLQVSLUHWKDWEHOLHI7KLVLVDQLQVWDQFH
ZKHUHDSSHDUDQFHLVMXVWDVLPSRUWDQWDVWKHUHDOLW\/LNH&DHVDU
VZLIHDMXGJHPXVWQRWRQO\EHSXUHEXWEH\RQG
VXVSLFLRQ$WOHDVWWKDWLVDQLGHDOZRUWKVWULYLQJIRU:KDWLVPRUHWKHUHLVGHIHUHQFHWRWKHGXHSURFHVVPDQGDWH
1HFHVVDULO\WKHQWKHUHLVFRPSOHWHDFFHSWDQFHRQP\SDUWRIWKHWKRXJKWH[SUHVVHGLQWKHRSLQLRQRIWKH&RXUWWKDWWKH
3UHVLGHQWLVQRWSUHFOXGHGIURPSXUVXLQJIXUWKHUDQRWLRQSUHYLRXVO\H[SUHVVHGE\KLPFRQFHUQLQJWKHSRVVLEOHWUDQVIHURI
WKHSURFHHGLQJVDJDLQVWSHWLWLRQHUWRWKHFLYLOFRXUWV
$IHZZRUGVPRUH,WLVWREHDGPLWWHGWKDWLQFRSLQJZLWKWKHXUJHQFLHVRIWKHWLPHVLQDFFRUGDQFHZLWKZKDWLV
RUGDLQHGE\WKHIXQGDPHQWDOODZDQGWKXVKDYHLWVSURPLVHIXOILOOHGWKLV&RXUWLVFRPSHOOHGWRHQWHUDGRPDLQ
PXFKOHVVFOHDUO\PDSSHGRXWWKDQEHIRUH,WKDVWRILQGLWVZD\DVEHVWLWFDQZLWKWKHOLJKWVXSSOLHGE\DSSOLFDEOH
SUHFHGHQWVDQGWKHSURPSWLQJVRIUHDVRQDWWLPHVUHQGHUHGREVFXUHE\WKHFORXGVRIWKHHPHUJHQF\FRQGLWLRQV
0RUHRYHUWKHUHPXVWEHDQDZDUHQHVVWKDWWKHFRPSOH[LWLHVRIDQHUDPD\QRW\LHOGWRWKHVLPSOLFLWLHVRID
FRQVWLWXWLRQDOIXQGDPHQWDOLVPDVZHOODVRIWKHSLWIDOOVRIPHUHO\GRFWULQDLUHLQWHUSUHWDWLRQV,WFDQQRWDSSO\
SUHFHSWVZLWKLQIOH[LEOHULJLGLW\WRIDVWFKDQJLQJVLWXDWLRQV7KHQRWLRQRIODZLQIOX[FDUULHVLWIDULQGHHGIURPD
IL[HGPRRULQJLQFHUWDLQW\7KHUHPXVWEHLWFDQQRWEHGHQLHGJUHDWHUVHQVLWLYLW\WRWKHVKLIWVLQDSSURDFKFDOOHG
IRUE\WKHWURXEOHGSUHVHQW1RQHWKHOHVVWRSDUDSKUDVH&DUGR]RFDUHLVWREHWDNHQOHVWWLPHWHVWHGGRFWULQHV
PD\VKULYHOLQWKHHIIXOJHQFHRIWKHRYHUSRZHULQJUD\VRIPDUWLDOUXOH7KHUHPXVWEHDQHIIRUWWRUHPDLQ
FRQVLVWHQWZLWKWKHROGDOWKRXJKUHOHYDQWWRWKHQHZ,WLVP\YLHZWKDWWKHUHE\WKHUHLVILGHOLW\WRWKHFRQFHSWRIWKH
&RQVWLWXWLRQQRWRQO\DVDEURDGFKDUWHURISRZHUVWRUHVROYHFRQIOLFWLQJLVVXHVDQGVRFLDOSUREOHPVDPHDQVRI
RUGHULQJWKHOLIHRIWKHQDWLRQLQWLPHVRIQRUPDOF\DVZHOODVRIFULVLVEXWDOVRDVDFLWDGHORIFLYLOOLEHUWLHV
7((+$1.((-GLVVHQWLQJ
7KLVRSLQLRQIRUWKHJUDQWLQJRISHWLWLRQHU
VZLWKGUDZDOPRWLRQDQGLQYLHZRILWVGHQLDOIRUWKHJUDQWLQJRIWKHZULW
RISURKLELWLRQDJDLQVWUHVSRQGHQWPLOLWDU\FRPPLVVLRQDVSUD\HGIRULQWKHSHWLWLRQLVLVVXHGSXUVXDQWWRWKH
&RXUW
V5HVROXWLRQRI$SULOZKLFKUXOHGDVIROORZV Wr x
vK T Z k
7KH&RXUWE\DYRWHRIVHYHQWRWKUHH5HVROYHGWR'(1<SHWLWLRQHU
VPRWLRQIRUZLWKGUDZDORIWKH
SHWLWLRQDQGRIDOOPRWLRQVDQGLQFLGHQWVUHODWHGWKHUHWR&DVWUR%DUUHGR$QWRQLR(VJXHUUD$TXLQR
&RQFHSFLRQ-UDQG0DUWLQ--YRWHGWRGHQ\WKHPRWLRQ)HUQDQGR7HHKDQNHHDQG0XxR]3DOPD
--YRWHGWRJUDQWWKHPRWLRQ
7KHUHEHLQJQRVXIILFLHQWYRWHVWRGHFODUHWKDWWKHUHVSRQGHQW0LOLWDU\&RPPLVVLRQLVZLWKRXW
MXULVGLFWLRQRYHUWKHSHQGLQJFULPLQDOFDVHVILOHGDJDLQVWWKHSHWLWLRQHUDQGWKDWLWDFWHGZLWKJUDYH
DEXVHRIGLVFUHWLRQLQFRQGXFWLQJWKHSHUSHWXDWLRQRIWHVWLPRQ\SURFHHGLQJVWKH&RXUW5HVROYHGWR
OLIWHIIHFWLYHLPPHGLDWHO\WKHUHVWUDLQLQJRUGHULVVXHGRQ$SULO7HHKDQNHHDQG0XxR]
3DOPD--YRWHGWRPDLQWDLQWKHUHVWUDLQLQJRUGHU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
2QWKHTXHVWLRQRIZDLYHURIWKHSUHVHQFHRIWKHSHWLWLRQHULQWKHSHUSHWXDWLRQRIWHVWLPRQ\
SURFHHGLQJV)HUQDQGR7HHKDQNHH%DUUHGR$QWRQLR0XxR]3DOPDDQG$TXLQR--YRWHGLQIDYRU
RIXSKROGLQJWKHSHWLWLRQHU
VULJKWRIWRWDOZDLYHURIKLVSUHVHQFH&DVWUR(VJXHUUD&RQFHSFLRQ-U
DQG0DUWLQ--YRWHGLQIDYRURITXDOLILHGZDLYHUWKDWLVWKDWWKHDFFXVHGFRXOGZDLYHKLVSUHVHQFH
H[FHSWLQWKHLQVWDQFHVZKHUHVXFKSUHVHQFHLVQHHGHGIRUKLVLGHQWLILFDWLRQE\WKHSURVHFXWLRQ
ZLWQHVVHV
7KHH[WHQGHGUHDVRQHGUHVROXWLRQRUGHFLVLRQDQGWKHVHSDUDWHH[WHQGHGUHDVRQHGFRQFXUULQJ
DQGRUGLVVHQWLQJRSLQLRQVZLOOEHUHOHDVHGQH[WZHHN
0DNDOLQWDO&-WRRNQRSDUWIRUEHLQJDSDUW\UHVSRQGHQW0DNDVLDU-LVRQOHDYH
,,YRWHIRUWKHJUDQWLQJRISHWLWLRQHU
VPRWLRQWRZLWKGUDZKLVSHWLWLRQDQGDOORWKHUSHQGLQJPRWLRQVDQGPDWWHUV
7RSDUDSKUDVHDQGFLWHWKH&KLHI-XVWLFH
VUHDVRQVLQFDVWLQJDYRWHIRUJUDQWLQJDVLPLODUPRWLRQIRUZLWKGUDZDORI
SHWLWLRQILOHGE\IRUPHU-RVH:'LRNQRLQWKH+DEHDV&RUSXVFDVHVZKLFKZDVDOVRGHIHDWHGIRUODFNRIQHFHVVDU\
YRWHVVXFKZLWKGUDZDOZRXOGQRWHPDVFXODWHWKHLVVXHVRISDUDPRXQWSXEOLFLQWHUHVWWKDWQHHGWREHUHVROYHGDVLQYRNHG
E\WKHPDMRULW\IRUWKH\PD\EHGXO\UHVROYHGLQWKHRWKHUFDVHVZKLFKUHPDLQSHQGLQJVXFKDVWKHHDUOLHUDQGXUJHQWOHDG
FDVHRI*XPDXDYV(VSLQRDQG0LOLWDU\&RPPLVVLRQ1RZKLFKUDLVHVWKHVDPHIXQGDPHQWDOTXHVWLRQRIZKHWKHU
PLOLWDU\WULEXQDOVKDYHMXULVGLFWLRQWRWU\FLYLOLDQVZKHUHLQSHWLWLRQHUZDVVHQWHQFHGRQ0DUFKWRGHDWKE\ILULQJ
VTXDGZKLFKVHQWHQFHZDVDIILUPHGRQ6HSWHPEHUE\WKH3UHVLGHQWDQGZKLFKKDVORQJEHHQSHQGLQJGHFLVLRQ
DQGVLQFHLWLVSHWLWLRQHU$TXLQR
VOLIHDQGOLEHUW\WKDWDUHDWVWDNHKLVFKRLFHWRUHQRXQFHKLVRZQSHWLWLRQTXHVWLRQLQJWKH
MXULVGLFWLRQRIUHVSRQGHQWPLOLWDU\FRPPLVVLRQWRWU\WKHFDVHVILOHGDJDLQVWKLPDQGWKHVXEVHTXHQWLQFLGHQWVDQGWRUHPRYH
WKHFDVHIURPWKLV&RXUW
VFRJQL]DQFHVKRXOGEHUHVSHFWHGUHJDUGOHVVRIWKHIDFWWKDWRQHGLVDJUHHGZLWKPDQ\RIKLV
UHDVRQVIRUVRGRLQJVLQFHRQHFRXOGQRWHVFDSHDVHQVHRILURQ\LQWKLV&RXUW
VWXUQLQJGRZQWKHSOHDWRZLWKGUDZDQG
WKHQUXOLQJDGYHUVHO\WRKLPRQWKHPHULWVRIKLVSHWLWLRQ,WPD\EHDGGHGWKDWVLQFHWKHPDMRULW\ZKRYRWHGWRGHQ\WKH
ZLWKGUDZDOPRWLRQQXPEHUVRQO\VHYHQRXWRIWHQ-XVWLFHVWDNLQJSDUWLQWKHGHOLEHUDWLRQVDVRIWKHGDWHRILVVXDQFHRIWKH
&RXUW
V5HVROXWLRQRI$SULOZKLFKGHQLHGWKHPRWLRQWKHPDMRULW\RSLQLRQZRXOGIDOOVKRUWRIWKHUHTXLUHGQXPEHURI
HLJKW-XVWLFHVWRUHQGHUDGHFLVLRQRQWKHPHULWV7KH6ROLFLWRU*HQHUDO
VJURXQGVIRURSSRVLQJZLWKGUDZDODUHQRW
SHUVXDVLYH,QKLVILUVWRSSRVLWLRQRI$SULOZKHUHKHQRWHVWKDWSHWLWLRQHUKDVFKRVHQWRGUDPDWL]HKLVSURWHVWE\
VWDJLQJDKXQJHUVWULNH3HWLWLRQHU
VPRWLRQLVWKXVVLOHQWO\HORTXHQWLQLWVDYRLGDQFHRIWKHUHDVRQVIRUZLWKGUDZDOKLV
SUD\HUWKDWLIWKHSHWLWLRQHU
VPRWLRQLVJUDQWHGLWVKRXOGEHZLWKSUHMXGLFHLVLQFRQVLVWHQWZLWKKLVSRVWXUHWKDWWKHSHWLWLRQ
LVSUHPDWXUHDQGZLWKWKHIDFWWKDWWKHFKDUJHVDJDLQVWSHWLWLRQHUDUHVWLOOSHQGLQJUHLQYHVWLJDWLRQDVRUGHUHGE\WKH
3UHVLGHQW,QKLVVHFRQGRSSRVLWLRQRI$SULOKHDYHUVWKDWWKH*RYHUQPHQWVHHNVRQO\WRSUHVHQWWKHHYLGHQFH
VXSSRUWLQJWKHFKDUJHVRIPXUGHULOOHJDOSRVVHVVLRQRIILUHDUPVDQGVXEYHUVLRQDJDLQVWWKHSHWLWLRQHUDQGLIWKLVEHVR
SHWLWLRQHU
VZLWKGUDZDORIKLVSHWLWLRQDWEDUSUHFLVHO\FOHDUVWKHZD\RIDOOMXGLFLDOREVWDFOHVIRUWKHSURVHFXWLRQWRGRVR
3HWLWLRQHU
VZLWKGUDZDOVKRXOGEHSURSHUO\JUDQWHGLQSXUVXDQFHRIWKHHVWDEOLVKHGSULQFLSOHWKDWWKHMXGLFLDOSRZHU
LVH[HUFLVHGRQO\ZKHQQHFHVVDU\IRUWKHUHVROXWLRQRIDQDFWXDOFDVHDQGFRQWURYHUV\SDUWLFXODUO\LQYLHZRIWKH
UHVSRQGHQWV
VWDQGLQWKHLUDQVZHUWKDWWKHSHWLWLRQKDVEHHQSUHPDWXUHO\ILOHG
-XGLFLDODEVWHQWLRQWKHQZRXOGSURYLGHWKH&RXUWZLWKWLPHDQGRSSRUWXQLW\WRSRQGHUDQGGHOLEHUDWHRQWKHEDVLF
FRQVWLWXWLRQDOTXHVWLRQVLQYROYHGDQGWKHLUUDPLILFDWLRQVZKLFKFRQFHUQLQWHUDOLDWKHVXSUHPDF\RIFLYLOLDQDXWKRULW\
RYHUWKHPLOLWDU\WKHULJKWRIFLYLOLDQVWRMXGLFLDOSURFHVVDVDJDLQVWWKHH[HFXWLYHSURFHVVRIPLOLWDU\WULEXQDOVWKH
XSKROGLQJRI-XGLFLDO3RZHUDVYHVWHGE\WKH&RQVWLWXWLRQLQWKH6XSUHPH&RXUWDQGLQVXFKLQIHULRUFRXUWVDVPD\
EHHVWDEOLVKHGE\ODZDQGWKHUHFRJQLWLRQRIWKHLQGLYLGXDO
VOLEHUWLHVDVJXDUDQWHHGE\WKH%LOORI5LJKWVHYHQLQD
VWDWHRIPDUWLDOODZ
,,6LQFHWKHPDMRULW\KDVQHYHUWKHOHVVUHVROYHGWRJRLQWRWKHPHULWVRIWKHFDVHDQGWKHWUDQVFHQGHQWDO
FRQVWLWXWLRQDOLVVXHVDEULHIVWDWHPHQWRIWKHIDFWXDOEDFNJURXQGLVUHTXLUHGIRUWKHSURSHUFRQVLGHUDWLRQRIWKH
LVVXHVRQWKHPHULWV
3HWLWLRQHUDIWHUKDYLQJEHHQVHUYHGRQ$XJXVWDQGDWKLVGHWHQWLRQTXDUWHUVZLWKFRSLHVRIWKHVL[
FULPLQDOFKDUJHVILOHGDJDLQVWKLPZLWKUHVSRQGHQWPLOLWDU\FRPPLVVLRQILOHGRQ$XJXVWKLVRULJLQDO
SHWLWLRQDWEDUIRUSURKLELWLRQTXHVWLRQLQJWKHMXULVGLFWLRQRIPLOLWDU\WULEXQDOVLQWKHDEVHQFHRIDVWDWHRIZDURU
EHOOLJHUHQF\RYHUFLYLOLDQVOLNHKLPSDUWLFXODUO\IRUFLYLORIIHQVHVDOOHJHGO\FRPPLWWHGEHIRUHWKHSURFODPDWLRQRI
PDUWLDOODZDQGFRPSODLQLQJRIYLRODWLRQRIKLVFRQVWLWXWLRQDOULJKWVLQWKDWKHZDVGHSULYHGRIGXHSURFHVVDQGWKH
YHVWHGULJKWWRSUHOLPLQDU\LQYHVWLJDWLRQDVSURYLGHGE\ODZDQGWKHDVVLVWDQFHRIFRXQVHOZLWKULJKWWRFURVV
H[DPLQHWKHZLWQHVVHVDJDLQVWKLP
3HWLWLRQHUIXUWKHUDOOHJHGWKDWWKHPLOLWDU\WULEXQDOVDUHPHUHLQVWUXPHQWVDQGVXEMHFWWRWKHFRQWURORIWKH
3UHVLGHQWDVFUHDWHGE\KLPXQGHUWKH*HQHUDO2UGHUVLVVXHGE\KLPDV&RPPDQGHULQ&KLHIRIWKH$UPHG
)RUFHVRIWKH3KLOLSSLQHVDQGWKDWKHKDGDOUHDG\EHHQSXEOLFO\LQGLFWHGDQGDGMXGJHGJXLOW\E\WKH3UHVLGHQWRIWKH
FKDUJHVLQDQDWLRQZLGHSUHVVFRQIHUHQFHKHOGRQ$XJXVWIROORZLQJWKH3OD]D0LUDQGDERPELQJRI$XJXVW
DQGWKHVXVSHQVLRQRIWKHSULYLOHJHRIWKHZULWRIKDEHDVFRUSXVXQGHU3URFODPDWLRQ1RRQ$XJXVW
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
IXUWKHUDFWLRQZDVWDNHQE\WKH&RXUWIRUIROORZLQJSHWLWLRQHU
VUHIXVDOWRSDUWLFLSDWHLQWKHDUUDLJQPHQWDQGWULDOVHW
RQ$XJXVWWKH3UHVLGHQWLVVXHGRQ$XJXVW$GPLQLVWUDWLYH2UGHU1RFUHDWLQJDVSHFLDO
ILYHPHPEHUFRPPLWWHHWRUHLQYHVWLJDWHWKHFKDUJHVDJDLQVW%HQLJQR6$TXLQR-UDQGRWKHUVFRPSRVHGRID
UHWLUHG6XSUHPH&RXUW-XVWLFHWREHGHVLJQDWHGE\WKH&KLHI-XVWLFHDVFKDLUPDQDQGIRXUPHPEHUVWREH
GHVLJQDWHGUHVSHFWLYHO\E\WKHDFFXVHGSHWLWLRQHUKLPVHOIWKHSUHVLGHQWRIWKH,QWHJUDWHG%DURIWKH3KLOLSSLQHV
WKH6HFUHWDU\RI-XVWLFHDQGWKH6HFUHWDU\RI1DWLRQDO'HIHQVHZLWKWKHSURYLVRWKDWVKRXOGWKHDFFXVHGGHFOLQH
WRGHVLJQDWHDUHSUHVHQWDWLYHWRWKHFRPPLWWHHWKH&KLHI-XVWLFHVKDOOGHVLJQDWHVRPHRQHLQKLVVWHDGDQG
H[SUHVVO\VWDWLQJWKHIROORZLQJSUHPLVHVDQGREMHFWLYHV Wr x
vK T Z k
:+(5($6%HQLJQR6$TXLQR-UDQGKLV&RXQVHOKDYHUHSHDWHGO\FRPSODLQHGRUDOO\DQGLQZULWLQJ
WKDWWKHDFFXVHGKDVEHHQGHQLHGKLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVDQGKDYHRSHQO\TXHVWLRQHG
WKHUHJXODULW\DQGIDLUQHVVRIWKHDSSOLFDWLRQWRKLPRIWKHHVWDEOLVKHGSURFHGXUHVDQFWLRQHGE\ODZ
DQGSUDFWLFH
:+(5($6DOWKRXJKWKH3URVHFXWLRQ6WDIILVDVVXPHGWRKDYHFRQGXFWHGDIDLUDQGLPSDUWLDOLQLWLDO
LQYHVWLJDWLRQLWLVGHVLUDEOHWRUHDVVXUHWKHDFFXVHGWKDWKHFRQWLQXHVWRHQMR\KLVFRQVWLWXWLRQDOULJKW
WRGXHSURFHVVDQGWRUHPRYHDQ\GRXEWZKDWVRHYHULQWKHPLQGRIDQ\ERG\WKDWRQO\DIWHUILQGLQJD
SULPDIDFLHFDVHDJDLQVWKLPZHUHFKDUJHVILOHG
:+(5($6LWLVQHFHVVDU\IRUWKHDERYHSXUSRVHWKDWD&RPPLWWHHEHFUHDWHGWRFRQGXFWDUH
LQYHVWLJDWLRQRIVDLGFKDUJHVWRGHPRQVWUDWHWKDWHYHU\WKLQJLVEHLQJGRQHWRLQVXUHXWPRVWIDLUQHVV
LPSDUWLDOLW\DQGREMHFWLYLW\LQWKHSURVHFXWLRQRIWKHFKDUJHVDJDLQVWWKHDFFXVHGDQGWRGHWHUPLQH
ZKHWKHUUHDOO\WKHUHLVUHDVRQDEOHJURXQGWREHOLHYHWKDWWKHRIIHQVHVFKDUJHGZHUHLQIDFW
FRPPLWWHGDQGWKHDFFXVHGLVSUREDEO\JXLOW\WKHUHRI
[[[[[[[[[
7KH&RPPLWWHHVKDOOFRQYHQHLPPHGLDWHO\FRQGXFWWKHSUHOLPLQDU\LQYHVWLJDWLRQLQWKHPRVW
H[SHGLWLRXVPDQQHUDQGVXEPLWLWVILQGLQJVWRWKH6HFUHWDU\RI-XVWLFH
7RSUHYHQWDIDLOXUHRUGHOD\RIMXVWLFHDQ\WHVWLPRQLDOHYLGHQFHSUHVHQWHGEHIRUHWKH&RPPLWWHH
PD\EHXVHGLQDQ\SURFHHGLQJRUDFWLRQEHIRUHDQ\FRXUWRUWULEXQDOFLYLORUPLOLWDU\ZLWKRXWQHHGRI
SUHVHQWLQJWKHZLWQHVVRUZLWQHVVHVZKRWHVWLILHGLQFDVHVXFKZLWQHVVRUZLWQHVVHVKDYHGLHGRUOHIW
WKHFRXQWU\RUEHFRPHXQDEOHWRWHVWLI\
7KHFKDUJHVDJDLQVWSHWLWLRQHUDQGKLVFRDFFXVHGZHUHWKXVEURXJKWEDFNWRWKHVWDJHRISUHOLPLQDU\
LQYHVWLJDWLRQ2Q$XJXVWUHVSRQGHQWPLOLWDU\FRPPLVVLRQPHWDQGRUGHUHGWKDWWKHKHDULQJRIWKHFDVHV
EHSRVWSRQHGLQGHILQLWHO\WRDZDLWWKHRXWFRPHRIWKHUHLQYHVWLJDWLRQRUGHUHGXQGHUWKHVDLG$GPLQLVWUDWLYH
2UGHU
7KH6HFUHWDULHVRI-XVWLFHDQGRI1DWLRQDO'HIHQVHGHVLJQDWHGWKHLUUHSUHVHQWDWLYHV7KH&KLHI-XVWLFHDVNHG
UHWLUHG-XVWLFH-%/5H\HVEXWWKHODWWHURQ$XJXVWGHFOLQHGWKHGHVLJQDWLRQDQGDOVRGHFOLQHGDV,%3
SUHVLGHQWWRGHVLJQDWHDUHSUHVHQWDWLYHWRWKHVSHFLDOFRPPLWWHHRQJURXQGVRILOOHJDOLW\RIWKHRUGHU3HWLWLRQHU
OLNHZLVHGHFOLQHGWRGHVLJQDWHKLVUHSUHVHQWDWLYH
3HWLWLRQHUILOHGRQ6HSWHPEHUKLVILUVWVXSSOHPHQWDOSHWLWLRQWRLQFOXGHWKHVHGHYHORSPHQWVDQGWRLQVLVW
WKDWKHEHJUDQWHGKLVULJKWWRSUHOLPLQDU\LQYHVWLJDWLRQDVSUHVFULEHGE\VWDWXWRU\ODZWREHFRQGXFWHGE\WKH
FRXUWRIILUVWLQVWDQFHDVIDUDVWKHIRXUFKDUJHVRIVXEYHUVLRQXQGHU5$DUHFRQFHUQHG2Q2FWREHU
3UHVLGHQWLDO'HFUHH1RDPHQGLQJ3'1RSUHVFULELQJWKHUXOHVRISURFHGXUHIRUPLOLWDU\WULEXQDOV
XQGHUPDUWLDOODZZDVLVVXHGSURYLGLQJIRUWKHSHUSHWXDWLRQRIWHVWLPRQ\LQFDVHVSHQGLQJEHIRUHPLOLWDU\
WULEXQDOV
1RDFWLRQZDVWDNHQE\WKH&RXUWRQWKLVVXSSOHPHQWDOSHWLWLRQXQWLO-XO\ZKHQLWLVVXHGDUHVROXWLRQ
UHTXLULQJDQDQVZHUWKHUHWRZKLFKZDVILOHGE\WKH6ROLFLWRU*HQHUDORQ$XJXVW2Q2FWREHU
SHWLWLRQHUILOHGDVHFRQGVXSSOHPHQWDOSHWLWLRQFLWLQJWKH3UHVLGHQW
VVWDWHPHQWVWRWKHZRUOGSUHVVRQ$SULO
DQG$XJXVWRQWKHDFWXDOUHPRYDORIPDUWLDOODZDQGWKDWWHFKQLFDOO\DQGOHJDOO\PDUWLDOODZZDV
OLIWHGZLWKWKHUDWLILFDWLRQRIWKH&RQVWLWXWLRQODVW\HDU7KH6ROLFLWRU*HQHUDOILOHGKLVDQVZHUWKHUHWRRQ
'HFHPEHU
0HPRUDQGDZHUHILOHGE\SHWLWLRQHU
VFRXQVHODQGE\WKH6ROLFLWRU*HQHUDORQ0DUFKDQG0DUFK
UHVSHFWLYHO\
0HDQZKLOHRQ0DUFKUHVSRQGHQWPLOLWDU\FRPPLVVLRQLVVXHGH[SDUWHLWVRUGHUJUDQWLQJWKH
SURVHFXWLRQ
VPRWLRQRI0DUFKWRH[DPLQHDQGWDNHWKHGHSRVLWLRQRILWVZLWQHVVHVRQ0DUFKDQG
$SULOXQWLOWHUPLQDWHGIRUSHUSHWXDWLRQSXUSRVHVRQWKHEDUHDOOHJDWLRQWKDW7KHSHWLWLRQVRIWKH
DFFXVHG%HQLJQR6$TXLQR-USHQGLQJLQWKH6XSUHPH&RXUWZLOOWDNHWLPHWRUHVROYHUHVXOWLQJLQWKHGHOD\RIWKH
SHUSHWXDWLRQRIWKHWHVWLPRQLHVRIWKHSURVHFXWLRQZLWQHVVHV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
3HWLWLRQHU
VFRXQVHOILOHGRQ0DUFKDQXUJHQWPRWLRQWRUHVWUDLQUHVSRQGHQWPLOLWDU\FRPPLVVLRQIURP
KROGLQJWKHSHUSHWXDWLRQSURFHHGLQJVRQWKHJURXQGVDPRQJRWKHUVWKDWWKHYHU\LVVXHRILWVMXULVGLFWLRQWRWDNH
FRJQL]DQFHRIFLYLORIIHQVHVDOOHJHGO\FRPPLWWHGEHIRUHPDUWLDOODZE\FLYLOLDQVOLNHSHWLWLRQHUZDVSHQGLQJZLWKWKLV
&RXUWDQGWKDWVXFKSURFHHGLQJVZRXOGVKRUWFLUFXLWWKH6SHFLDO5HLQYHVWLJDWLQJ&RPPLWWHHFUHDWHGXQGHU
$GPLQLVWUDWLYH2UGHU1RHYHQEHIRUHVXFKFRPPLWWHHKDVFRPPHQFHGLWVGXW\WRGHWHUPLQHWKHH[LVWHQFHRI
UHDVRQDEOHJURXQGWREHOLHYHWKDWWKHRIIHQVHVFKDUJHGZHUHLQIDFWFRPPLWWHGDQGWKHDFFXVHGLVSUREDEO\
JXLOW\WKHUHRIDQGZKHWKHURUQRWSHWLWLRQHUVKRXOGEHKHOGIRUWULDO
2Q$SULOWKLV&RXUWWKHQFRPSRVHGRIWHQPHPEHUVLVVXHGLWVUHVROXWLRQWKDWLWODFNHGWKHQHFHVVDU\
TXRUXPWRDFWRQSHWLWLRQHU
VVDLGXUJHQWPRWLRQ
2Q$SULOSHWLWLRQHU
VFRXQVHOILOHGDQXUJHQWPDQLIHVWDWLRQDYHUULQJWKDWWKLV&RXUWZLWKRXWDTXDOLILHG
TXRUXPFRXOGLVVXHWKHWHPSRUDU\UHVWUDLQLQJRUGHUSUD\HGIRUVRDVQRWWRUHQGHUWKHFDVHPRRWDQGDSSULVLQJ
WKLV&RXUWWKDWDIWHUUHVSRQGHQWPLOLWDU\FRPPLVVLRQKDGRQ$SULOKHOGFRQVLVWHQWO\ZLWK(ODJRYV3HRSOH
WKDWWKHSHUSHWXDWLRQSURFHHGLQJVDUHQRWDSDUWRIWKHWULDODQGJUDQWHGSHWLWLRQHU
VUHTXHVWWREHUHWXUQHGWRKLVGHWHQWLRQ
TXDUWHUVUXOLQJWKDWKHFRXOGUHIXVHWREHSUHVHQWDWWKHSURFHHGLQJVVLQFHKHKDGH[SUHVVO\ZDLYHGKLVSUHVHQFHDV
DOORZHGLQ3'1RLWUHYHUVHGLWVHOIDWWKHPLOLWDU\SURVHFXWRU
VLQVWDQFHRQ$SULODQGQRZUXOHGWKDWWKH
SHUSHWXDWLRQSURFHHGLQJVDUHSDUWRIWKHWULDODQGWKDWSHWLWLRQHUPXVWEHSUHVHQWDWWKHSURFHHGLQJVZKLFKZRXOGWDNHWZRWR
WKUHHPRQWKVDFFRUGLQJWRWKHPLOLWDU\SURVHFXWRU
VPDQLIHVWDWLRQDQGWKDWSHWLWLRQHUPXVWEHSK\VLFDOO\SUHVHQWWKURXJKRXW
WKHSURFHHGLQJVHYHQDJDLQVWKLVZLOO
3HWLWLRQHU
VFRXQVHOIXUWKHUPDQLIHVWHGWKDWSHWLWLRQHU
VUHTXHVWWRUHVSRQGHQWPLOLWDU\FRPPLVVLRQWRVXVSHQGWKH
SURFHHGLQJVIRUVHYHQGD\VWRDOORZKLVFRXQVHOWLPHDQGRSSRUWXQLW\WRVHHNDSSURSULDWHUHOLHIIURPWKLV&RXUW
ZDVVXPPDULO\GHQLHGDQGSHWLWLRQHUWKHQGHOLYHUHGKLVVWDWHPHQWWKDWLIGHQLHGWKLVODVWEDVLFULJKWRIDKXPDQ
EHLQJWREHOHWDORQHKHZRXOGKDYHQRDOWHUQDWLYHEXWWRJRRQDKXQJHUVWULNHDVDIRUPRIVLOHQWSURWHVW
DJDLQVWDSURFHGXUHWKDWLVLQWHQGHGWRKXPLOLDWHDQGGHKXPDQL]HPH
7KHSHUSHWXDWLRQRIWHVWLPRQ\SURFHHGLQJVWKXVFRPPHQFHGRQ$SULODQGFRQWLQXHGRQVXFFHHGLQJGD\V
ZLWKWKHPLOLWDU\SURVHFXWRUSUHVHQWLQJDVWKHILUVWVWDWHZLWQHVV%HQMDPLQ0%LH-UDOLDV+XN&RPPDQGHU
0HORG\DQGZLWKSHWLWLRQHUEHLQJFRPSHOOHGWREHSUHVHQWWKURXJKRXWWKHSURFHHGLQJV7KLVZLWQHVV%LHWRJHWKHU
ZLWKDQRWKHUOLVWHGZLWQHVV%HQMDPLQ6DQJX\RDOLDV+XN&RPPDQGHU3XVDZHUHRULJLQDOO\FRDFFXVHGZLWK
SHWLWLRQHULQIRXUVXEYHUVLRQFKDUJHVEXWWKHFKDUJHVDJDLQVWWKHPZHUHZLWKGUDZQXQGHUDQROOHSURVHTXLRUGHU
LVVXHGE\WKH6HFUHWDU\RI1DWLRQDO'HIHQVHGDWHG0DUFK
2Q$SULOWKH&RXUWRUGHUHGWKHLVVXDQFHRIDWHPSRUDU\UHVWUDLQLQJRUGHUHQMRLQLQJUHVSRQGHQWPLOLWDU\
FRPPLVVLRQIURPIXUWKHUSURFHHGLQJZLWKWKHSHUSHWXDWLRQSURFHHGLQJVXQWLOWKHPDWWHULVKHDUGDQGIXUWKHU
RUGHUVDQGVHWSHWLWLRQHU
VXUJHQWPRWLRQDQGUHODWHGLQFLGHQWVIRUKHDULQJRQ$SULO,WZDVDWWKLVKHDULQJ
WKDWSHWLWLRQHU
VFRXQVHOSUHVHQWHGWKHVLPSOHPRWLRQWRZLWKGUDZWKHSHWLWLRQDQGDOORWKHUSHQGLQJPRWLRQVLQ
FRPSOLDQFHZLWKWKHSHWLWLRQHU
VH[SUHVVZLVK,QFRPSOLDQFHZLWKWKH&RXUW
VLQVWUXFWLRQDWWKHKHDULQJWRLQTXLUH
LQWRSHWLWLRQHU
VUHDVRQVIRUKLVZLWKGUDZDOPRWLRQKLVFRXQVHORQWKHQH[WGD\$SULOILOHGWKHLU
PDQLIHVWDWLRQVXEPLWWLQJWKHUHZLWKSHWLWLRQHU
VSDJHOHWWHURI$SULODGGUHVVHGWRKLVZLIHPRWKHU
UHODWLYHVDQGIULHQGVVWDWLQJKLVUHDVRQVWKHUHIRUDQGIRUFRQWLQXLQJWKHKXQJHUVWULNHKHEHJDQWHQGD\VDJR
LQWHUDOLDWKDWKHIHOWWKDWWKHFDVHKHKDGILOHGVLQFHLQWKH6XSUHPH&RXUWKDGEHFRPHPHDQLQJOHVV
WKDWKHKDVGHFLGHGWRSODFHKLVIDWHDQGKLVOLIHVTXDUHO\LQWKHKDQGVRI0U0DUFRVWKDW7KHPHDQLQJ
DQGWKUXVWRIKLVDEVHQFHRUSUHVHQFHLQWKHSURFHHGLQJVEHIRUHWKHPLOLWDU\WULEXQDODQGKHKDVVROHPQO\
YRZHGWRFRQWLQXHKLVKXQJHUVWULNHDVDSURWHVWDJDLQVWWKHWULDORIFLYLOLDQVEHIRUHPLOLWDU\WULEXQDOVWKH
ODFNRIMXGLFLDOLQGHSHQGHQFHIRUDVORQJDVRXUMXGJHVUHPDLQFDVXDOV
WKHDEVHQFHRIDJHQXLQHIUHH
SUHVVDQGWKHIXUWKHUFRQWLQXDQFHRIPDUWLDOODZDQGLWVHYLOVDQGUHSUHVVLRQV
,,,7KHWUDQVFHQGHQWDOFKDUDFWHURIWKHFRQVWLWXWLRQDOLVVXHVUDLVHGGHDOLQJDVWKH\GRZLWKWKHLQGLYLGXDO
V
IXQGDPHQWDOOLEHUWLHVDVJXDUDQWHHGE\WKH%LOORI5LJKWVHYHQLQDVWDWHRIPDUWLDOODZZKLFKFRQFHGHGO\LVQRWD
PLOLWDU\WDNHRYHURIFLYLOJRYHUQPHQWIXQFWLRQVDQGUHFRJQL]HGXQGHUWKH&RQVWLWXWLRQWRZKLFKDOOKDYHSOHGJHGOR\DOW\DQG
ZKHUHLQZHDUHQRZFDOOHGXSRQWRGLVFKDUJHWKHMXGLFLDU\
VJUHDWEXUGHQRIGHILQLQJLWVFRQVWLWXWLRQDOERXQGDULHVFRPSHOVP\YRWHRQWKHPHULWVZKLFK,
FDVWIRUWKHJUDQWLQJRIWKHZULWRISURKLELWLRQSUD\HGIRUDJDLQVWUHVSRQGHQWPLOLWDU\FRPPLVVLRQIRUWKHUHDVRQVDQGFRQVLGHUDWLRQVZKLFKDUHKHUHLQEHORZ
UHVSHFWIXOO\VXEPLWWHG
&LYLOLDQVOLNHSHWLWLRQHUSODFHGRQWULDOIRUFLYLORIIHQVHVXQGHUJHQHUDOODZDUHHQWLWOHGWRWULDOE\MXGLFLDOSURFHVV
QRWE\H[HFXWLYHRUPLOLWDU\SURFHVV-XGLFLDOSRZHULVYHVWHGE\WKH&RQVWLWXWLRQH[FOXVLYHO\LQWKH6XSUHPH&RXUW
DQGLQVXFKLQIHULRUFRXUWVDVDUHGXO\HVWDEOLVKHGE\ODZ-XGLFLDOSRZHUH[LVWVRQO\LQWKHFRXUWVZKLFKKDYH
H[FOXVLYHSRZHUWRKHDUDQGGHWHUPLQHWKRVHPDWWHUVZKLFKDIIHFWWKHOLIHRUOLEHUW\RUSURSHUW\RIDFLWL]HQ
0LOLWDU\FRPPLVVLRQRUWULEXQDOVDUHDGPLWWHGO\QRWFRXUWVDQGGRQRWIRUPSDUWRIWKHMXGLFLDOV\VWHP$VIXUWKHU
DGPLWWHGE\WKH6ROLFLWRU*HQHUDOLQKLVDQVZHUPLOLWDU\FRPPLVVLRQVDUHDXWKRUL]HGWRH[HUFLVHMXULVGLFWLRQRYHUWZR
FODVVHVRIRIIHQVHVZKHWKHUFRPPLWWHGE\FLYLOLDQVRUE\PLOLWDU\SHUVRQQHOHLWKHUDLQWKHHQHP\
VFRXQWU\GXULQJLWV
RFFXSDWLRQE\DQDUP\DQGZKLOHLWUHPDLQVXQGHUPLOLWDU\JRYHUQPHQWRUELQWKHORFDOLW\QRWZLWKLQWKHHQHP\
VFRXQWU\
LQZKLFKPDUWLDOODZKDVEHHQHVWDEOLVKHGE\FRPSHWHQWDXWKRULW\7KHFODVVHVRIRIIHQVHVDUHDYLRODWLRQRIWKHODZVDQG
FXVWRPVRIZDUDQGEFLYLOFULPHVZKLFKEHFDXVHWKHFLYLOFRXUWVDUHFORVHGRUWKHLUIXQFWLRQVVXVSHQGHGRUOLPLWHG
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FDQQRWEHWDNHQFRJQL]DQFHRIE\WKHRUGLQDU\WULEXQDOV
6LQFHZHDUHQRWHQHP\RFFXSLHGWHUULWRU\QRUDUHZHXQGHUDPLOLWDU\JRYHUQPHQWDQGHYHQRQWKHSUHPLVHWKDW
PDUWLDOODZFRQWLQXHVLQIRUFHWKHPLOLWDU\WULEXQDOVFDQQRWWU\DQGH[HUFLVHMXULVGLFWLRQRYHUFLYLOLDQVIRUFLYLO
RIIHQVHVFRPPLWWHGE\WKHPZKLFKDUHSURSHUO\FRJQL]DEOHE\WKHFLYLOFRXUWVWKDWKDYHUHPDLQHGRSHQDQGKDYH
EHHQUHJXODUO\IXQFWLRQLQJ,QWKHOHDGLQJFDVHRI'XQFDQYV.DKDQDPRNXWKH866XSUHPH&RXUWKHOGLQVHWWLQJ
DVLGHWKHSULVRQVHQWHQFHVLPSRVHGRQWZRFLYLOLDQVE\PLOLWDU\WULEXQDOVWKDWWKHSODFLQJRI+DZDLLXQGHUPDUWLDOODZDIWHU
WKH-DSDQHVH3HDUO+DUERUDWWDFNRQ'HFHPEHUXQGHUWKH+DZDLLDQ2UJDQLF$FWGLGQRWLQFOXGHWKHSRZHURQWKH
SDUWRIWKHPLOLWDU\JRYHUQRUWRVXSSODQWFLYLOLDQODZVE\PLOLWDU\RUGHUVDQGWRVXSSODQWFLYLOFRXUWVE\PLOLWDU\WULEXQDOV
ZKHUHFRQGLWLRQVZHUHQRWVXFKDVWRSUHYHQWWKHHQIRUFHPHQWRIWKHODZVE\WKHFRXUWV
7KHODWH-XVWLFH)UDQN0XUSK\LQKLVFRQFXUULQJRSLQLRQWKHUHLQUHSXGLDWHGWKHJRYHUQPHQW
VDSSHDOWRDEDQGRQ
WKHRSHQFRXUWVUXOHRQWKHDOOHJHGJURXQGRILWVXQVXLWDELOLW\WRPRGHUQZDUIDUHFRQGLWLRQVZKHUHDOOWKH
WHUULWRULHVRIDZDUULQJQDWLRQPD\EHLQ&RPEDW]RQHVRULPPLQHQWO\WKUHDWHQHGZLWKORQJUDQJHDWWDFNHYHQZKLOH
FLYLOFRXUWVDUHRSHUDWLQJDVVHHNLQJWRMXVWLI\PLOLWDU\XVXUSDWLRQRIFLYLOLDQDXWKRULW\WRSXQLVKFULPHZLWKRXW
UHJDUGWRWKHSRWHQF\RIWKH%LOORI5LJKWVDQGREVHUYLQJWKDW&RQVWLWXWLRQDOULJKWVDUHURRWHGGHHSHUWKDQWKH
ZLVKHVDQGGHVLUHVRIWKHPLOLWDU\
$QGLQ7RWKYV4XDUOHVWKH866XSUHPH&RXUWIXUWKHUVWUHVVHGWKDWWKHDVVHUWLRQRIPLOLWDU\DXWKRULW\RYHUFLYLOLDQV
FDQQRWUHVWRQWKH3UHVLGHQW
VSRZHUDV&RPPDQGHULQ&KLHIRURQDQ\WKHRU\RIPDUWLDOODZ
7KXVWKH3UHVLGHQWKDVILOOHGXSYDFDQFLHVLQWKHMXGLFLDU\DQGDOOD\HGHIIHFWLYHO\WKHIHDUVH[SUHVVHGGXULQJWKH
LQLWLDOGD\VRIPDUWLDOODZWKDWWKHUXOHRIWKHPLOLWDU\ZRXOGSUHYDLOEHFDXVHRWKHUFRXQWULHVXQGHUPDUWLDOODZKDG
GLVSHQVHGZLWKFLYLOLDQFRXUWVRIMXVWLFHDQGVWUHVVHGWKHVXSUHPDF\RIWKH&RQVWLWXWLRQDWWKHWKDQQLYHUVDU\
ULWHVRIWKH$)3ZKHQKHWROGWKH$UPHG)RUFHVWKDW7KHPLOLWDU\LVWKHIRUFHWKDWHQIRUFHVWKHODZEXWWKHFLYLO
JRYHUQPHQWLVWKHUXOLQJSRZHULQRXUFRXQWU\DQGWKDWZHKDYHVWXFNWRWKH&RQVWLWXWLRQ:HKDYHSOHGJHG
OR\DOW\WRWKDW&RQVWLWXWLRQ
(YHQDVVXPLQJWKDWPLOLWDU\WULEXQDOVFRXOGYDOLGO\H[HUFLVHMXULVGLFWLRQRYHURIIHQVHVDOOHJHGO\FRPPLWWHGE\
FLYLOLDQVQRWZLWKVWDQGLQJWKHDEVHQFHRIDVWDWHRIZDURUEHOOLJHUHQF\DQGWKHXQLPSDLUHGIXQFWLRQLQJRIWKH
UHJXODUFRXUWVRIMXVWLFHVXFKMXULVGLFWLRQFRXOGQRWHQFRPSDVVFLYLORIIHQVHVGHILQHGE\WKHJHQHUDOFLYLOODZDV
SHUWKH5HYLVHG3HQDO&RGHDQG5HSXEOLF$FWNQRZQDVWKH$QWL6XEYHUVLRQ$FWDOOHJHGWRKDYHEHHQ
FRPPLWWHGE\FLYLOLDQVOLNHSHWLWLRQHULQDQGORQJEHIRUHWKHGHFODUDWLRQRIPDUWLDO
ODZDVRI6HSWHPEHU
7KH866XSUHPH&RXUWDSWO\SRLQWHGRXWLQ7RWKYV4XDUOHVVXSUDLQUXOLQJWKDWGLVFKDUJHGDUP\YHWHUDQV
HVWLPDWHGWRQXPEHUPRUHWKDQPLOOLRQFRXOGQRWEHUHQGHUHGKHOSOHVVEHIRUHVRPHODWWHUGD\UHYLYDORI
ROGPLOLWDU\FKDUJHVDQGVXEMHFWHGWRPLOLWDU\WULDOVIRURIIHQVHVFRPPLWWHGZKLOHWKH\ZHUHLQWKHPLOLWDU\VHUYLFHSULRU
WRWKHLUGLVFKDUJHWKDWWKHSUHVLGLQJRIILFHUDWDFRXUWPDUWLDOLVQRWDMXGJHZKRVHREMHFWLYLW\DQGLQGHSHQGHQFHDUH
SURWHFWHGE\WHQXUHDQGXQGLPLQLVKHGVDODU\DQGQXUWXUHGE\WKHMXGLFLDOWUDGLWLRQEXWLVDPLOLWDU\ODZRIILFHU6XEVWDQWLDOO\
GLIIHUHQWUXOHVRIHYLGHQFHDQGSURFHGXUHDSSO\LQPLOLWDU\WULDOV$SDUWIURPWKHVHGLIIHUHQFHVWKHVXJJHVWLRQRIWKH
SRVVLELOLW\RILQIOXHQFHRQWKHDFWLRQVRIWKHFRXUWPDUWLDOE\WKHRIILFHUZKRFRQYHQHVLWVHOHFWVLWVPHPEHUVDQGWKH
FRXQVHORQERWKVLGHVDQGZKRXVXDOO\KDVGLUHFWFRPPDQGDXWKRULW\RYHULWVPHPEHUVLVDSHUYDVLYHRQHLQPLOLWDU\ODZ
GHVSLWHVWUHQXRXVHIIRUWVWRHOLPLQDWHWKHGDQJHU
7KHODWH-XVWLFH%ODFNVSHDNLQJIRUWKDW&RXUWDGGHGWKDW$&RXUW0DUWLDOLVQRW\HWDQLQGHSHQGHQWLQVWUXPHQW
RIMXVWLFHEXWUHPDLQVWRDVLJQLILFDQWGHJUHHDVSHFLDOL]HGSDUWRIWKHRYHUDOOPHFKDQLVPE\ZKLFKPLOLWDU\
GLVFLSOLQHLVSUHVHUYHGDQGWKDWH[VHUYLFHPHQVKRXOGEHJLYHQWKHEHQHILWVRIDFLYLOLDQFRXUWWULDOZKHQWKH\DUH
DFWXDOO\FLYLOLDQV)UHHFRXQWULHVRIWKHZRUOGKDYHWULHGWRUHVWULFWPLOLWDU\WULEXQDOVWRWKHQDUURZHVWMXULVGLFWLRQ
GHHPHGDEVROXWHO\HVVHQWLDOWRPDLQWDLQLQJGLVFLSOLQHDPRQJWURRSVLQDFWLYHVHUYLFH
0RUHVRWKHQVKRXOGPLOLWDU\WULDOVEHQRWVDQFWLRQHGIRUFLYLORIIHQVHVDOOHJHGO\FRPPLWWHGE\FLYLOLDQVOLNH
SHWLWLRQHUORQJEHIRUHWKHGHFODUDWLRQRIPDUWLDOODZDQGIRUZKLFKWKH\FRXOGKDYHEHHQFKDUJHGWKHQDVZHOODV
QRZEHIRUHWKHFLYLOFRXUWVZKLFKKDYHDOZD\VUHPDLQHGRSHQDQGWKHLUSURFHVVDQGIXQFWLRQVXQREVWUXFWHG
7KH6ROLFLWRU*HQHUDO
VFRQWHQWLRQWKDWPLOLWDU\WULEXQDOVKDYHFRPSHWHQFHWRWU\FLYLOFULPHVUHODWLQJWRWKHFDXVHV
MXVWLI\LQJWKHSURFODPDWLRQRIPDUWLDOODZLQDYHLOHGUHIHUHQFHWRWKHVXEYHUVLRQFKDUJHVDJDLQVWSHWLWLRQHUGRHVQRW
PHHWWKHHVVHQWLDOUHTXLUHPHQWRIWKHH[LVWHQFHRIRYHUSRZHULQJQHFHVVLW\RUHPHUJHQF\WRMXVWLI\WKHWULDORISHWLWLRQHUD
FLYLOLDQIRUWKHVDLGFLYLORIIHQVHVE\UHVSRQGHQWPLOLWDU\FRPPLVVLRQ
2QWKHFRQWUDU\WKH3UHVLGHQW
VLVVXDQFHRI$GPLQLVWUDWLYH2UGHU1RRQ$XJXVWIRUWKH
UHLQYHVWLJDWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHUE\DQRQPLOLWDU\VSHFLDOFRPPLWWHHHVWDEOLVKHVSHUVHWKDWQR
VHULRXVJURXQGVRIRYHUSRZHULQJQHFHVVLW\RUFRQVLGHUDWLRQVRIQDWLRQDOVHFXULW\RUHPHUJHQF\VWDQGLQWKHZD\
RIUHFRJQL]LQJSHWLWLRQHU
VULJKWWRDFLYLOLDQWULDOVKRXOGWKHUHVXOWVRIWKHFLYLOLDQUHLQYHVWLJDWLRQSURYHDGYHUVHWR
KLP
$VVWDWHGE\WKHSUHVHQW-XGJH$GYRFDWH*HQHUDOLQKLVWUHDWLVHRQPDUWLDOODZ1HFHVVLW\OLPLWVERWKWKHH[WHQWRI
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
SRZHUVWKDWPD\EHH[HUFLVHGXQGHUPDUWLDOODZDQGWKHGXUDWLRQRILWVH[HUFLVH1ROLIHPD\EHWDNHQQR
LQGLYLGXDODUUHVWHGRUFRQILQHGRUKHOGIRUWULDOQRSURSHUW\GHVWUR\HGRUDSSURSULDWHGQRULJKWVRIWKHLQGLYLGXDO
PD\EHFXUWDLOHGRUVXVSHQGHGH[FHSWZKHUHQHFHVVLW\MXVWLILHVVXFKLQWHUIHUHQFHZLWKWKHSHUVRQRUWKHSURSHUW\
$Q\DFWLRQRQWKHSDUWRIWKHPLOLWDU\WKDWLVQRWIRXQGHGRQWKHUHDVRQDEOHGHPDQGVRIQHFHVVLW\LVDJURVV
XVXUSDWLRQRISRZHULOOHJDOXQMXVWLILHGDQGLPSURSHU7KHEURDGPDQWOHRIPDUWLDOODZFDQQRWFRYHUDFWVLOOHJDO
EHFDXVHQRWMXVWLILHGE\QHFHVVLW\QRUSURSHUXQGHUWKHFLUFXPVWDQFHV7KLVSULQFLSOHLVEDVHGQRWRQO\XSRQWKH
IXQGDPHQWDOSUHFHSWVRIFRQVWLWXWLRQDOLVPEXWUHVWVRQVRXQGUHDVRQ²WKDWZKHUHWKHDFWLRQRIWKHPDWWHULVQRW
QHFHVVDU\IRUWKHSXEOLFHQGVRIWKHVWDWHWKH\DUHLOOHJDODQGWKHPHUHIDFWWKDWPDUWLDOODZH[LVWVZLOOQRWEHD
JURXQGIRUWKHLUMXVWLILFDWLRQ
3HWLWLRQHUPD\QRWEHGHSULYHGRIKLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVE\PHDQVRIWKHSURFHHGLQJVLQVWLWXWHG
DJDLQVWKLPEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQYL]
D7KHVXPPDU\H[SDUWHLQYHVWLJDWLRQE\WKHFKLHISURVHFXWLRQVWDIIRIWKH-$*2RIWKHFKDUJHVILOHGDJDLQVWKLP
GHSULYHGKLPRIKLVULJKWWREHLQIRUPHGRIWKHFKDUJHVDJDLQVWKLPDQGRIKLVULJKWWRFRXQVHODVH[SUHVVO\
UHFRJQL]HGQRZE\VHFWLRQRIWKH%LOORI5LJKWVRIWKH&RQVWLWXWLRQ
EKHZRXOGEHGHSULYHGRIKLVYHVWHGVWDWXWRU\ULJKWWRDSUHOLPLQDU\LQYHVWLJDWLRQRIWKHVXEYHUVLRQFKDUJHV
DJDLQVWKLPEHIRUHWKHSURSHUFRXUWRIILUVWLQVWDQFHDVUHTXLUHGXQGHUVHFWLRQRIWKH$QWL6XEYHUVLRQ$FW
5HSXEOLF$FWDQGRIWKHRWKHUFKDUJHVDJDLQVWKLPEHIRUHWKHSURSHUFLYLOLDQRIILFLDOVDQGWRFRQIURQWDQGFURVV
H[DPLQHWKHZLWQHVVHVDJDLQVWKLPXQGHU5HSXEOLF$FWDWWKHOHDVWWKHVSHFLDOUHLQYHVWLJDWLQJFRPPLWWHHFUHDWHG
XQGHU$GPLQLVWUDWLYH2UGHU1RVKRXOGEHDFWLYDWHGLQRUGHUWRGLVFKDUJHLWVDVVLJQHGWDVNRIFRQGXFWLQJWKHSUHOLPLQDU\
LQYHVWLJDWLRQDQGGHWHUPLQLQJZKHWKHURUQRWWKHSHWLWLRQHUVKRXOGEHKHOGIRUWULDOFKHZRXOGEHGHSULYHGRIWKHULJKWWREH
WULHGE\MXGLFLDOSURFHVVE\WKHUHJXODULQGHSHQGHQWFRXUWVRIMXVWLFHZLWKDOOWKHVSHFLILFFRQVWLWXWLRQDOVWDWXWRU\DQG
SURFHGXUDOVDIHJXDUGVHPERGLHGLQWKHMXGLFLDOSURFHVVDQGSUHVLGHGRYHUQRWE\PLOLWDU\RIILFHUVWUDLQHGDQGRULHQWHGDORQJ
VWULFWUXOHVRIGLVFLSOLQHDQGULJLGFRXQWHQDQFHDOWKRXJKWKH\DUHKXPDQEHLQJVZLWKKXPDQKHDUWVZKRDUHQRWODZ\HUV
H[FHSWWKHODZPHPEHUEXWE\MXGJHVRIDWOHDVWWHQ\HDUVH[SHULHQFHLQWKHSUDFWLFHRIODZZKRVHREMHFWLYLW\DQG
LQGHSHQGHQFHDUHSURWHFWHGE\WHQXUHJXDUDQWHHGE\WKH&RQVWLWXWLRQDQGDUHQXUWXUHGE\WKHMXGLFLDOWUDGLWLRQDQG
G+HZRXOGEHGHSULYHGRIWKHULJKWWRDSSHDOWRWKHUHJXODUDSSHOODWHFRXUWVDQGWRMXGLFLDOUHYLHZE\WKLV&RXUW
LQWKHHYHQWRIFRQYLFWLRQDQGLPSRVLWLRQRIDVHQWHQFHRIGHDWKRUOLIHLPSULVRQPHQWZKLFKWKHFKDUJHVFDUU\
$UWLFOH;VHFWLRQRIWKH&RQVWLWXWLRQH[SUHVVO\SURYLGHVWKDWWKH1DWLRQDO$VVHPEO\ZKLFKLVYHVWHGZLWKWKHSRZHU
WRGHILQHSUHVFULEHDQGDOORFDWHWKHMXULVGLFWLRQRIWKHYDULRXVFRXUWVPD\QRWGHSULYHWKLV&RXUWRILWVMXULVGLFWLRQRYHUVXFK
VHULRXVFDVHVDPRQJRWKHUV7KLV&RXUWLQWKHH[HUFLVHRIVXFKMXULVGLFWLRQKDVFRQVLVWHQWO\H[DFWHGWKHFDUGLQDOUXOHWKDW
WKHSURVHFXWLRQPXVWSURYHWKHJXLOWRIWKHDFFXVHGEH\RQGDUHDVRQDEOHGRXEWDQGUHTXLUHGDTXDOLILHGPDMRULW\RIWHQ
YRWHVIRUDIILUPDQFHRIWKHGHDWKSHQDOW\ZKLFKUHTXLUHPHQWLVRIFRXUVHQRWIRXQGLQWKH&RPPDQGHULQ&KLHI
VUHYLHZRI
WKHGHFLVLRQVRIPLOLWDU\WULEXQDOV
)RUWKHPLOLWDU\WULEXQDOWRWU\SHWLWLRQHUXQGHUWKHVHFLUFXPVWDQFHVLVWRGHQ\SHWLWLRQHUGXHSURFHVVRIODZDV
JXDUDQWHHGXQGHUVHFWLRQRIWKH%LOORI5LJKWVDVZHOODVXQGHUVHFWLRQZKLFKIXUWKHUVSHFLILFDOO\RUGDLQVWKDW
1RSHUVRQVKDOOEHKHOGWRDQVZHUIRUDFULPLQDORIIHQVHZLWKRXWGXHSURFHVVRIODZ7KHHOLPLQDWLRQE\
VXEVHTXHQWGHFUHHVRIKLVULJKWWRSUHOLPLQDU\LQYHVWLJDWLRQZLWKULJKWRIFRXQVHODQGRIFURVVH[DPLQDWLRQRIWKH
VXEYHUVLRQFKDUJHVEHIRUHWKHSURSHUFRXUWRIILUVWLQVWDQFHXQGHU5HSXEOLF$FWDQGRIRWKHUULJKWVYHVWHGLQ
KLPDWWKHWLPHRIWKHDOOHJHGFRPPLVVLRQRIWKHRIIHQVHZKLFKZHUHDOOPHDQWWRSURYLGHWKHDFFXVHGZLWKDPSOH
ODZIXOSURWHFWLRQLQWKHHQIRUFHPHQWRIVDLG$FWVXFKDVWKHEDVLFULJKWWREHWULHGE\MXGLFLDOSURFHVVDQGWKHULJKW
RIMXGLFLDOUHYLHZE\WKLV&RXUWZRXOGIXUWKHURIIHQGWKH&RQVWLWXWLRQDOLQMXQFWLRQDJDLQVWWKHHQDFWPHQWRIH[SRVW
IDFWRODZVZKLFKZRXOGUHQGHULWHDVLHUWRFRQYLFWDQDFFXVHGWKDQEHIRUHWKHHQDFWPHQWRIVXFKODZ
:LWKDOOVXFKFRQVWLWXWLRQDOVDIHJXDUGVWKH&RXUWWKURXJK0U-XVWLFH&DVWURLQLWVGHFLVLRQLQ3HRSOHYV)HUUHU
UHQGHUHGDIWHUWKHSURFODPDWLRQRIPDUWLDOODZQHYHUWKHOHVVHQMRLQHGWKDWHYHQDVZHXSKROGWKHYDOLGLW\RIWKH$QWL
VXEYHUVLRQ$FWZHFDQQRWRYHUHPSKDVL]HWKHQHHGIRUSUXGHQFHDQGFLUFXPVSHFWLRQLQLWVHQIRUFHPHQWRSHUDWLQJDVLW
GRHVLQWKHVHQVLWLYHDUHDRIIUHHGRPRIH[SUHVVLRQDQGEHOLHIDQGVHWVSHFLILFEDVLFJXLGHOLQHVWREHREVHUYHGLQDQ\
SURVHFXWLRQXQGHUWKH$FW+HQFHWKHSURKLELWLRQDJDLQVWH[SRVWIDFWRODZVODZVKDVEHHQDSWO\GHVFULEHGDVDZDUQLQJ
DJDLQVWOHJLVODWLYHRSSUHVVLRQRUW\UDQQ\DQGDSURYLVLRQWKDWZRXOGPLQLPL]HLIQRWHUDGLFDWHWKHSRVVLELOLW\RIWKH
OHJLVODWXUHLWVHOIGLVFUHGLWLQJWKHVWDWHZLWKLWVSDOSDEOHGLVUHJDUGRIDEDVLFREMHFWLYHWKDWMXVWLFHEHGLVSHQVHGZLWKDQHYHQ
KDQGWKURXJKWKHGXO\HVWDEOLVKHGRUJDQVZLWKDVSHFLDOILWQHVVIRUWKHWDVN
3HWLWLRQHUKDVWKXVFLWHGWKH3UHVLGHQW
VDQQRXQFHPHQWRQ'HFHPEHUWKDWWKHSHUVRQVFKDUJHGZLWK
DVVDVVLQDWLRQDWWHPSWVDJDLQVWKLPZLOOEHWULHGEHIRUHWKHFLYLOFRXUWVDOWKRXJKWKHFKDUJHVZHUHILOHGZLWKWKH
PLOLWDU\WULEXQDOVDQGWKH3UHVLGHQW
VUHFHQWLVVXDQFHRQ0DUFKRI/HWWHURI,QVWUXFWLRQ1RFUHDWLQJD
VSHFLDOILYHPHPEHUSDQHOWRFRQGXFWDQLQYHVWLJDWLRQWRUHHYDOXDWHWKHHYLGHQFHDJDLQVWWKHWKHUHLQDFFXVHGDQGWR
GHWHUPLQHZKHWKHUDQRIIHQVHKDVEHHQFRPPLWWHGDQGZKHWKHUWKH\DUHSUREDEO\JXLOW\WKHUHRIDQGLISUREDEOHFDXVHLV
IRXQGWRILOHWKHDSSURSULDWHFKDUJHV
3HWLWLRQHU
VSOHDWKDWKLVWULDOE\DPLOLWDU\WULEXQDOFUHDWHGE\WKH3UHVLGHQWDQGFRPSRVHGRIWKH3UHVLGHQW
V
RZQPLOLWDU\VXERUGLQDWHVZLWKRXWWHQXUHDQGRIQRQODZ\HUVH[FHSWWKHODZPHPEHUDQGRIZKRVHGHFLVLRQWKH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
3UHVLGHQWLVWKHILQDOUHYLHZLQJDXWKRULW\DV&RPPDQGHULQ&KLHIRIWKH$UPHG)RUFHVGHSULYHVKLPRIDEDVLF
FRQVWLWXWLRQDOULJKWWREHKHDUGE\DIDLUDQGLPSDUWLDOWULEXQDOFRQVLGHULQJWKDWWKH3UHVLGHQWKDVSXEOLFO\GHFODUHG
WKHHYLGHQFHDJDLQVWSHWLWLRQHUQRWRQO\VWURQJEXWRYHUZKHOPLQJDQGLQSHWLWLRQHU
VYLHZWKHUHE\SUHMXGJHG
DQGSUHGHWHUPLQHGKLVJXLOWPHULWVFRQVLGHUDWLRQ
,QSHWLWLRQHU
VYLHZKHKDVEHHQSXEOLFO\LQGLFWHGDQGKLVJXLOWSUHMXGJHGE\WKH3UHVLGHQWZKHQLQDQDWLRQZLGH
SUHVVFRQIHUHQFHRQ$XJXVWIROORZLQJWKH3OD]D0LUDQGDERPELQJWKUHHGD\VHDUOLHURIWKH/LEHUDO3DUW\
SURFODPDWLRQPHHWLQJWKH3UHVLGHQWFKDUJHGKLPDQGGLVFORVHGHYLGHQFHLQWKHSRVVHVVLRQRIWKHJRYHUQPHQW
OLQNLQJSHWLWLRQHUWRVRPHLOOHJDODQGVXEYHUVLYHDFWLYLWLHVLQZKLFKDUHYLUWXDOO\WKHVDPHFKDUJHVQRZ
ILOHGDJDLQVWKLPEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQDQGGHFODUHGWKHHYLGHQFHDJDLQVWSHWLWLRQHUQRWRQO\
VWURQJEXWRYHUZKHOPLQJ7KH3UHVLGHQWH[SODLQHGRQWKHVDPHRFFDVLRQWKDWLQQRWDFWLQJDJDLQVWSHWLWLRQHU
KHKDGHUUHGRQWKHVLGHRIJHQHURVLW\DVZHOODVRIOLEHUDOLW\KRSLQJWKDWJRRGVHQVHPD\VRPHGD\FDWFKXSZLWK
KLPVLQFHSHWLWLRQHUZDVWKHRQO\RSSRVLWLRQVHQDWRUOHIWLQWKH6HQDWHDIWHUWKHERPELQJEXWWKDWKHGLGQRW
NQRZZKDWZLOOKDSSHQODWHURQEHFDXVHRIFRXUVHWKHPLOLWDU\LQVLVWWKDWZHPXVWQRWPDNHDQ\H[FHSWLRQVWR
WKHJHQHUDOUXOH
:KLOHRQHPD\DJUHHWKDWWKH3UHVLGHQWDV&RPPDQGHULQ&KLHIZRXOGGLVFKDUJHKLVGXW\DVWKHILQDOUHYLHZLQJ
DXWKRULW\ZLWKIHDOW\WRKLVRDWKWRGRMXVWLFHWRHYHU\PDQSDUWLFXODUO\EHFDXVHRIKLVUHQRZQHGOHJDOVDJDFLW\
DQGH[SHULHQFHVWLOOXQGHUWKHHQYLURQPHQWDOIDFWVZKHUHWKHPLOLWDU\DSSHDUVWRKDYHEHHQLPSUHVVHGE\WKH
3UHVLGHQW
VDSSUDLVDORIWKHHYLGHQFHDQGZLWKRXWFDVWLQJDQ\UHIOHFWLRQRQWKHLQWHJULW\RIWKHPHPEHUVRI
UHVSRQGHQWPLOLWDU\FRPPLVVLRQZKLFKSHWLWLRQHUKLPVHOIDFNQRZOHGJHVWKHGRFWULQHFRQVLVWHQWO\KHOGE\WKH&RXUW
WKDWHOHPHQWDU\GXHSURFHVVUHTXLUHVDKHDULQJEHIRUHDQLPSDUWLDODQGGLVLQWHUHVWHGWULEXQDODULGWKDW$OO
VXLWRUVDUHHQWLWOHGWRQRWKLQJVKRUWRIWKHFROGQHXWUDOLW\RIDQLQGHSHQGHQWZKROO\IUHHGLVLQWHUHVWHGDQGLPSDUWLDO
WULEXQDOFDOOVIRUDSSOLFDWLRQLQWKHSUHVHQWFDVH
7KLV&RXUWLQDOOLWVMXULVSUXGHQFHRQGLVTXDOLILFDWLRQDQGLQKLELWLRQRIMXGJHVKDVLQYDULDEO\FLWHGDVDVDOXWDU\
QRUPWKDWKHWKHMXGJHUHIOHFWRQWKHSUREDELOLW\WKDWDORVLQJSDUW\PLJKWQXUWXUHDWWKHEDFNRIKLVPLQGWKH
WKRXJKWWKDWWKHMXGJHKDGXQPHULWRULRXVO\WLOWHGWKHVFDOHVRIMXVWLFHDJDLQVWKLPDQGDSSOLHGWKH\DUGVWLFNWKDW
ZKHQWKHEDVLVKDVEHHQODLGIRUWKHSRVVLELOLW\RIDWULDOEHLQJWDLQWHGE\SDUWLDOLW\WKLV&RXUWFDQVWHSLQWR
DVVXUHUHVSHFWIRUWKHGHPDQGVRIGXHSURFHVVZKLFKLWKDVH[WHQGHGSULPDULO\IRUWKHSHDFHRIPLQGDQG
SURWHFWLRQRIWKHDFFXVHG
5HVSRQGHQWV
FLWLQJRI<DPDVKLWDYV6W\HUDVMXVWLI\LQJWKHSURVHFXWLRQDQGWULDORIFLYLOLDQVE\PLOLWDU\FRPPLVVLRQV
LVLQHUURUDVWKDWFDVHLQYROYHGWKHWULDODQGSXQLVKPHQWRIZDUFULPLQDOVZKLFKLVDQDVSHFWRIZDJLQJZDU1HLWKHULVWKH
FUHDWLRQRIWKH3HRSOH
V&RXUWDIWHUWKHODVWZDUWRWU\WKRVHFKDUJHGZLWKWUHDVRQLQSRLQWIRUVDLGFRXUWDVZHOODVVLPLODU
FRXUWVOLNHWKH&LUFXLW&ULPLQDO&RXUWVZKLFKZHUHFUHDWHGE\&RQJUHVVSXUVXDQWWRLWVDXWKRULW\XQGHUWKH&RQVWLWXWLRQDQG
YHVWHGZLWKVSHFLDOMXULVGLFWLRQRYHUFHUWDLQFULPHVZHUHFUHDWHGDVMXGLFLDOFRXUWVDQGSDUWRIWKHMXGLFLDOV\VWHPZKRVH
GHFLVLRQVZHUHDQGDUHVXEMHFWWRUHYLHZE\WKHDSSHOODWHFRXUWVXQOLNHPLOLWDU\FRPPLVVLRQV
3UHVFLQGLQJIURPWKHLVVXHRIUHVSRQGHQWPLOLWDU\FRPPLVVLRQ
VODFNRIMXULVGLFWLRQRYHUWKHFKDUJHVDJDLQVWWKH
SHWLWLRQHUWKHH[DPLQDWLRQRIWKHSURVHFXWLRQZLWQHVVHVDQGWKHSHUSHWXDWLRQRIWKHLUWHVWLPRQ\VKRXOGSURSHUO\
EHKHOGEHIRUHWKH6SHFLDO5HLQYHVWLJDWLQJ&RPPLWWHHFUHDWHGXQGHU$GPLQLVWUDWLYH2UGHU1RIRUWKHVLPSOH
UHDVRQWKDWDOOSURFHHGLQJVEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQZHUHGHHPHGVXVSHQGHGE\YLUWXHRIWKH
UHLQYHVWLJDWLRQRUGHUHGE\WKH3UHVLGHQWWRGHWHUPLQHZKHWKHUWKHUHUHDOO\LVUHDVRQDEOHJURXQGWRKROG
SHWLWLRQHUIRUWULDODQGWKHSHUSHWXDWLRQRIWHVWLPRQ\JLYHQEHIRUHWKHVDLG&RPPLWWHHLVH[SUHVVO\SURYLGHGIRULQ
WKH$GPLQLVWUDWLYH2UGHU
WKDWWKH3UHVLGHQWFUHDWHGXQGHU$GP2UGHU1RRQ$XJXVWDVSHFLDOILYHPHPEHUFRPPLWWHHWR
FRQGXFWWKHSUHOLPLQDU\LQYHVWLJDWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHU
,WPD\EHVHHQIURPWKHDERYHVWDWHGSUHPLVHVDQGREMHFWLYHVWKDWWKHDGPLQLVWUDWLYHRUGHUZDVLVVXHGE\WKH
3UHVLGHQWSXUVXDQWWRKLVRULHQWDWLRQWRZDUGVWKHSURWHFWLRQRIWKH%LOORI5LJKWVDQGWKHMXGLFLDOSURFHVV$VWKH
3UHVLGHQWKLPVHOIGHFODUHGLQWKHVDPHQDWLRQZLGHSUHVVFRQIHUHQFHRI$XJXVW Wr x
vK T Z k
,DPDODZ\HUP\WUDLQLQJLVRULHQWHGWRZDUGVWKHSURWHFWLRQRIWKH%LOORI5LJKWVEHFDXVHLI\RXZLOO
UHPHPEHU,KDYHUHSHDWHGO\VDLGWKDWLILWZHUHQRWIRUWKH%LOORI5LJKWV,ZRXOGQRWEHKHUHQRZ,ILW
ZHUHQRWIRUWKHMXGLFLDOSURFHVV,ZRXOGQRWEH3UHVLGHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHV
,QSHWLWLRQHU
VXUJHQWPRWLRQRI0DUFKIRUDUHVWUDLQLQJRUGHUDJDLQVWWKHKROGLQJRISHUSHWXDWLRQRI
WHVWLPRQ\SURFHHGLQJVEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQKHSUHFLVHO\FRPSODLQHGWKDWVXFKSURFHHGLQJV
ZRXOGSUHHPSWDQGUHQGHUPRRWWKHSUHMXGLFLDOTXHVWLRQUDLVHGE\KLPLQWKHFDVHDWEDUFKDOOHQJLQJWKH
FRPPLVVLRQ
VMXULVGLFWLRQWRWDNHFRJQL]DQFHRIWKHFKDUJHVDJDLQVWKLPDQGZRXOGVKRUWFLUFXLWWKH
UHLQYHVWLJDWLRQRUGHUHGE\WKH3UHVLGHQWXQGHU$GP2UGHU1RHYHQEHIRUHWKHVDLGFRPPLWWHHKDV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
SHUIRUPHGLWVGXW\WRGHWHUPLQHZKHWKHURUQRWSHWLWLRQHUVKRXOGEHKHOGIRUWULDODQGQRWZLWKVWDQGLQJWKDWWKHUH
LVQRLQGLFDWLRQFRPLQJIURPWKH3UHVLGHQWRIWKH3KLOLSSLQHVWKDWLWKDVRXWOLYHGLWVXVHIXOQHVV²IXQFWXVRILFLR²
RUWKDWLWLVQRWILWWRDGPLQLVWHUMXVWLFHWRWKHSHWLWLRQHU
:KLOHSHWLWLRQHULQVLVWHGRQKLVULJKWWRDSUHOLPLQDU\LQYHVWLJDWLRQRIWKHVXEYHUVLRQFKDUJHVE\WKHFRXUWRIILUVW
LQVWDQFHDVSUHVFULEHGE\5HSXEOLF$FWKHQHYHUWKHOHVVSURSRXQGHGLQKLV0DUFKPHPRUDQGXP
WKDWUHWLUHG-XVWLFH-%/5H\HV
KDYLQJGHFOLQHGWRDFWDVFKDLUPDQRIWKHFRPPLWWHHDQGWRGHVLJQDWHD
UHSUHVHQWDWLYHRIWKH,QWHJUDWHG%DUGLGQRWPHDQWKDWWKHFRPPLWWHHFDQQRWEHPDGHWRIXQFWLRQVLQFHLQWKH
DEVHQFHRIMXGLFLDOZULWRUSURFHVVWKHUHLVQRWKLQJWRSUHYHQWWKHGHVLJQDWLRQRIDQRWKHUUHWLUHGMXVWLFHRIWKH
6XSUHPH&RXUWDVFKDLUPDQDQGQRWKLQJWRSUHYHQWWKHLQFRPLQJSUHVLGHQWRIWKH,QWHJUDWHG%DUWRGHVLJQDWHD
UHSUHVHQWDWLYHWRWKHFRPPLWWHH$VWRSHWLWLRQHU
VKDYLQJGHFOLQHGWRGHVLJQDWHKLVUHSUHVHQWDWLYHLWKDVDOUHDG\
EHHQSRLQWHGRXWVXSUDWKDWWKHVDLGRUGHUH[SUHVVO\SURYLGHVWKDWLQVXFKHYHQWWKH&KLHI-XVWLFHVKDOOGHVLJQDWH
VRPHRQHLQKLVVWHDG
,WLVHYLGHQWWKHQWKDWXQGHUWKHVDLGRUGHUWKH&KLHI-XVWLFHZDVFDOOHGXSRQWRILOODWOHDVWWKHWZRYDFDQFLHVE\
PDNLQJWKHVXEVWLWXWHGHVLJQDWLRQVDVWKHUHLQSURYLGHGZKLFKZRXOGKDYHHQDEOHGWKHFRPPLWWHHWRGLVFKDUJHLWV
IXQFWLRQZLWKDFRPSRVLWLRQRIIRXUPHPEHUVZKLOHDZDLWLQJWKHGHVLJQDWLRQRIWKHILIWKPHPEHUE\WKH,%3
SUHVLGHQWEXWWKDWKHUHIUDLQHGIURPGRLQJVRDVWKHPDWWHUZDVVXEMXGLFHEHFDXVHRIWKHSHQGHQF\RIWKH
VXSSOHPHQWDOSHWLWLRQDWEDUTXHVWLRQLQJWKHYDOLGLW\RIWKHRUGHURQWKHJURXQGWKDWLWGHSULYHGSHWLWLRQHURIKLV
ULJKWWRLQYHVWLJDWLRQE\WKHFRXUWRIILUVWLQVWDQFHRQWKHSULQFLSDOFKDUJHVRIVXEYHUVLRQ
:LWKWKH&RXUW
VGLVPLVVDORIWKHSHWLWLRQVDQGSHWLWLRQHU
VZLWKGUDZDOWKHUHRIQRWKLQJVWDQGVLQWKHZD\QRZRI
DFWLYDWLQJWKHVDLG6SHFLDO5HLQYHVWLJDWLQJ&RPPLWWHHDQGLWVGLVFKDUJLQJLWVDVVLJQHGWDVNRIFRQGXFWLQJWKH
SUHOLPLQDU\LQYHVWLJDWLRQDQGGHWHUPLQLQJZKHWKHUSHWLWLRQHUVKRXOGEHKHOGIRUWULDOLQLPSOHPHQWDWLRQRIWKH
RUGHU
VH[SUHVVREMHFWLYHVRIUHDVVXULQJSHWLWLRQHURIKLVFRQVWLWXWLRQDOULJKWWRGXHSURFHVVDQGLQVXULQJXWPRVW
IDLUQHVVLPSDUWLDOLW\DQGREMHFWLYLW\LQWKHSURVHFXWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHU
6XFKSUHOLPLQDU\LQYHVWLJDWLRQE\WKH6SHFLDO5HLQYHVWLJDWLQJ&RPPLWWHHZLWKLWVGLYHUVHPHPEHUVKLSDQG
HPSKDVLVWKDWWKRVHGHVLJQDWHGPXVWPHHWWKHTXDOLILFDWLRQVRIEHLQJOHDUQHGLQWKHODZUHSXWHGIRUSURELW\
LQWHJULW\LPSDUWLDOLW\LQFRUUXSWLELOLW\DQGIDLUQHVVDQGPXVWKDYHKDGQRSUHYLRXVFRQQHFWLRQLQWKLVPDWWHUHLWKHU
DVFRXQVHORULQYHVWLJDWRULVFHUWDLQO\IDUPRUHGHVLUDEOHWKDQWKHSUHVHQWVLWXDWLRQZKHUHVXFKJUDYHFKDUJHV
ZHUHVXPPDULO\ILOHGZLWKWKHPLOLWDU\FRPPLVVLRQDJDLQVWSHWLWLRQHUZLWKRXWKLVKDYLQJEHHQSUHYLRXVO\LQIRUPHG
RIWKHFKDUJHVDJDLQVWKLPQRUJLYHQWKHEHQHILWRIDQ\SUHOLPLQDU\LQYHVWLJDWLRQ
*RLQJE\WKHYHU\VWDQGDUGVRIXWPRVWIDLUQHVVLPSDUWLDOLW\DQGREMHFWLYLW\VHWE\WKH3UHVLGHQWLQWKH
$GPLQLVWUDWLYH2UGHUDQGSUHVFLQGLQJIURPWKHXQVHWWOHGTXHVWLRQRIZKHWKHUSHWLWLRQHUZRXOGKDYHWKURXJK
FRXQVHOWKHULJKWRIFURVVH[DPLQDWLRQRIWKHZLWQHVVHVSUHVHQWHGDJDLQVWKLPLWZLOOEHUHDGLO\DSSUHFLDWHGWKDWLQ
VXFKSUHOLPLQDU\LQYHVWLJDWLRQE\DQRQPLOLWDU\VSHFLDOFRPPLWWHHZKROO\FRPSRVHGRIFLYLOLDQVSHWLWLRQHUPD\
WKHQIDLUO\DQGSURSHUO\EHUHSUHVHQWHGE\H[SHULHQFHGFRXQVHOZKRFDQFRPSHWHQWO\KDQGOHKLVGHIHQVHDQGDW
OHDVWSUHVHQWWLPHO\REMHFWLRQVWRWKHDGPLVVLRQRILQFRPSHWHQWRULQDGPLVVLEOHHYLGHQFHQRWWRPHQWLRQWKDWWKH
ILYHPHQOHDUQHGLQWKHODZFRPSRVLQJWKHFRPPLWWHHZRXOGPRVWOLNHO\PRWXSURSLRUXOHRXWDQ\VXFK
LQDGPLVVLEOHHYLGHQFH7KLVZRXOGEHLQFRQWUDVWWRWKHSHUSHWXDWLRQSURFHHGLQJVLQWKHPLOLWDU\WULEXQDOZKHUH
SHWLWLRQHUKDVGLVFKDUJHGDOOKLVFRXQVHOVFLYLOLDQDQGPLOLWDU\EHFDXVHRIWKHODFNRIMXULVGLFWLRQLQKLVYLHZDV
ZHOODVSHUWKLVRSLQLRQRIWKHPLOLWDU\FRPPLVVLRQRYHUFLYLOLDQVOLNHKLPIRUDOOHJHGSUHPDUWLDOODZFLYLORIIHQVHV
DQGWKHQXOOLW\RIWKHSURFHHGLQJVWKHUHLQDQGWKXVKDVEHHQGHSULYHGDOWKRXJKE\KLVRZQDFWRILQGLVSHQVDEOH
OHJDOUHSUHVHQWDWLRQDQGDVVLVWDQFHLQWKHSURFHHGLQJVZKHUHKLVYHU\OLIHOLEHUW\DQGKRQRUDUHDWVWDNH
7KHREMHFWLYHRIWKHSHUSHWXDWLRQSURFHHGLQJVPD\SURSHUO\EHDFKLHYHGE\WKH6SHFLDO5HLQYHVWLJDWLQJ
&RPPLWWHHEHIRUHZKRPWKHWHVWLPRQLDOHYLGHQFHVRXJKWWREHSHUSHWXDWHGVKRXOGEHSUHVHQWHGLQWKHGLVFKDUJH
RILWVDVVLJQHGWDVNWRFRQGXFWDSUHOLPLQDU\LQYHVWLJDWLRQWRGHWHUPLQHZKHWKHURUQRWWKHFKDUJHVDJDLQVW
SHWLWLRQHUVKRXOGVWDQGDQGSHWLWLRQHUPDGHWRIDFHWULDO+ROGLQJWKHSHUSHWXDWLRQSURFHHGLQJVEHIRUHWKH
FRPPLWWHHZRXOGGLVSRVHRIWKHOHJDOUHTXLUHPHQWVXQGHU3'1RLWVHOIWKDWWKHSURFHHGLQJVEHKDGEHIRUHD
PLOLWDU\WULEXQDOZLWKMXULVGLFWLRQDQGEHIRUHZKLFKDFDVHLVSHQGLQJ(YHQWKRXJKWHFKQLFDOO\DVFRQWHQGHGE\
UHVSRQGHQWVWKHFDVHVDUHVWLOOSHQGLQJZLWKWKHPLOLWDU\WULEXQDOLWVHHPVREYLRXVIURPWKHYHU\WHUPVRI
$GPLQLVWUDWLYH2UGHU1RWKDWWKHFKDUJHVDUHLQIDFWGHHPHGZLWKGUDZQIURPWKHPLOLWDU\WULEXQDODQGWKH
ODWWHUFDQQRWKROGDQ\SURFHHGLQJVIRUDVORQJDVWKHFRPPLWWHHKDVQRWFRPSOHWHGLWVSUHOLPLQDU\LQYHVWLJDWLRQ
DQGGHWHUPLQHGWKHUHDIWHUWKHH[LVWHQFHRIDSULPDIDFLHFDVHVXIILFLHQWWROHWWKHFKDUJHVUHPDLQDQGWRUHTXLUH
SHWLWLRQHUWRIDFHWULDO7KH$GPLQLVWUDWLYH2UGHUWKXVH[SUHVVO\SURYLGHVIRUWKHSHUSHWXDWLRQRIDQ\WHVWLPRQLDO
HYLGHQFHSUHVHQWHGEHIRUHWKH&RPPLWWHHDQGIRULWVXVHLQDQ\SURFHHGLQJEHIRUHDQ\FRXUWRUWULEXQDOFLYLORU
PLOLWDU\ZLWKRXWQHHGRISUHVHQWLQJWKHZLWQHVVRUZLWQHVVHVZKRWHVWLILHGLQFDVHVXFKZLWQHVVRUZLWQHVVHVKDYH
GLHGRUOHIWWKHFRXQWU\RUEHFRPHXQDEOHWRWHVWLI\
$VVXPLQJQHYHUWKHOHVVWKDWWKHSHUSHWXDWLRQRIWHVWLPRQ\SURFHHGLQJVFRXOGEHSURSHUO\FRQGXFWHGEHIRUH
UHVSRQGHQWPLOLWDU\FRPPLVVLRQSHWLWLRQHU
VSK\VLFDOSUHVHQFHDWWKHSURFHHGLQJVFRXOGQRWEHFRPSHOOHGE\
YLUWXHRIKLVH[SUHVVZDLYHUWKHUHRIDVH[SOLFLWO\DOORZHGE\WKH&RQVWLWXWLRQDQGE\3'1RLWVHOI
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
2Q$SULOUHVSRQGHQWPLOLWDU\FRPPLVVLRQKDGUHFRJQL]HGSHWLWLRQHU
VULJKWWRZDLYHKLVSUHVHQFHDWWKH
SURFHHGLQJVDQGJUDQWHGKLVUHTXHVWWREHUHWXUQHGWRKLVGHWHQWLRQTXDUWHUV%XWRQ$SULOLWUHYHUVHG
LWVHOIDWWKHPLOLWDU\SURVHFXWRU
VLQVWDQFHDQGUXOHGLQVWHDGWKDWSHWLWLRQHU
VSUHVHQFHDWHYHU\VWDJHRIWKH
SURFHHGLQJLVLQGLVSHQVDEOHRQWKHJURXQGDVVWDWHGE\WKH6ROLFLWRU*HQHUDOWKDWWKHFKDUJHVDJDLQVWSHWLWLRQHU
LQYROYHFDSLWDORIIHQVHVDQGSHWLWLRQHULVLQFXVWRG\DQGSHWLWLRQHUKDGFODLPHGLQWKLVFDVHWKDWSURFHHGLQJVIRU
WKHSHUSHWXDWLRQRIWHVWLPRQ\ZHUHDFWXDOO\DSDUWRI
WULDO3HWLWLRQHU
VVXEPLWWDOWKDWKHFDQQRWEHFRPSHOOHGWREHSUHVHQWDWWKHSURFHHGLQJVHYHQDJDLQVWKLVZLOOE\YLUWXH
RIKLVH[SUHVVZDLYHULVPHULWRULRXV:KHUHDVSUHYLRXVO\VXFKULJKWRIZDLYHURIWKHDFFXVHG
VSUHVHQFHLQFULPLQDO
SURFHHGLQJVZDVJHQHUDOO\UHFRJQL]HGVDYHLQFDSLWDOFDVHV OOHDGLQJWRWKHVXVSHQVLRQRIWULDOZKHQHYHUWKHDFFXVHG
ZDVDWODUJHRUZKHUHWKHDFFXVHGZDVLQFXVWRG\DOWKRXJKIRUDQRQFDSLWDORIIHQVHWKH&RQVWLWXWLRQQRZ
XQTXDOLILHGO\SHUPLWVWULDOLQDEVHQWLDHYHQRIFDSLWDOFDVHVDQGSURYLGHVWKDWDIWHUDUUDLJQPHQWWULDOPD\SURFHHG
QRWZLWKVWDQGLQJWKHDEVHQFHRIWKHDFFXVHGSURYLGHGWKDWKHKDVEHHQGXO\QRWLILHGDQGKLVIDLOXUHWRDSSHDULVXQMXVWLILHG
WKXVUHFRJQL]LQJWKHULJKWRIDQDFFXVHGWRZDLYHKLVSUHVHQFH3'1RXQGHUZKLFKWKHSHUSHWXDWLRQSURFHHGLQJV
DUHEHLQJFRQGXFWHGLQPLOLWDU\FRPPLVVLRQVDVWKHFRXQWHUSDUWUXOHIRUVLPLODUSURFHHGLQJVEHIRUHWKHUHJXODUFLYLOFRXUWV
DVSURYLGHGLQ5XOHVHFWLRQRIWKH5XOHVRI&RXUWH[SOLFLWO\SURYLGHVWKDWDIWHUUHDVRQDEOHQRWLFHWRDQDFFXVHGWR
DWWHQGWKHSHUSHWXDWLRQSURFHHGLQJVWKHGHSRVLWLRQE\TXHVWLRQDQGDQVZHURIWKHZLWQHVVPD\SURFHHGLQWKHDFFXVHG
V
DEVHQFHDQGWKHIDLOXUHRUUHIXVDOWRDWWHQGWKHH[DPLQDWLRQRUWKHWDNLQJRIWKHGHSRVLWLRQVKDOOEHFRQVLGHUHGDZDLYHU
7KXVDQDFFXVHG
VULJKWRIWRWDOZDLYHURIKLVSUHVHQFHHLWKHUH[SUHVVO\RULPSOLHGO\E\XQMXVWLILHGIDLOXUHRUUHIXVDOWRDWWHQG
WKHSURFHHGLQJVLVQRZH[SOLFLWO\UHFRJQL]HGDQGKHFDQQRWEHFRPSHOOHGWREHSUHVHQWDVDJDLQVWKLVH[SUHVVZDLYHU
(YHQDVDPRQJWKHPHPEHUVRIWKH&RXUWZKRYRWHGDVSHUWKH$SULOUHVROXWLRQLQIDYRURITXDOLILHG
ZDLYHULHWKDWWKHDFFXVHG
VSUHVHQFHFRXOGEHUHTXLUHGLQWKHLQVWDQFHVZKHUHKLVSUHVHQFHLVQHHGHGIRUKLV
LGHQWLILFDWLRQE\WKHSURVHFXWLRQZLWQHVVWKHYLHZZDVH[SUHVVHGWKDWVXFKSUHVHQFHFRXOGEHGLVSHQVHGZLWKLI
KLVZDLYHUH[SUHVVO\LQFOXGHGDQDGPLVVLRQRIKLVLGHQWLILFDWLRQE\QDPHE\WKHZLWQHVVHVGHSRQHQWV,WVKRXOGEH
QRWHGWKDWVXFKDQDGGLWLRQDOUHTXLUHPHQWZRXOGEHVXSHUIOXRXVEHFDXVHRIWKHWRWDOZDLYHUDVZHOODVEHFDXVHRI
WKHGLVSXWDEOHSUHVXPSWLRQHVWDEOLVKHGE\WKHUXOHRIHYLGHQFHRILGHQWLW\RISHUVRQIURPLGHQWLW\RIQDPHDVLGH
IURPWKHPDQ\SURPLQHQWSXEOLFSRVLWLRQVRFFXSLHGE\SHWLWLRQHUWKURXJKZKLFKKLVLGHQWLILFDWLRQLVPDGHE\WKHSURVHFXWLRQ
ZLWQHVVHVDVQRWHGIURPWKHLUDIILGDYLWVDVVXEPLWWHGE\WKH6ROLFLWRU*HQHUDO
3HWLWLRQHU
VREMHFWLRQWRWKHSHUSHWXDWLRQSURFHHGLQJVSDUWLFXODUO\LIWKH\ZHUHWREHFRQVLGHUHGSDUWRIWKHWULDO
VLQFHWKHYHU\TXHVWLRQDWLVVXHLQWKHFDVHDWEDURQPLOLWDU\FRPPLVVLRQV
ODFNRIMXULVGLFWLRQRYHUSUHPDUWLDOODZ
FLYLORIIHQVHVDOOHJHGO\FRPPLWWHGE\FLYLOLDQVOLNHSHWLWLRQHUZRXOGEHSUHHPSWHGDQGUHQGHUHGPRRWE\WKH
SURFHHGLQJVVKRXOGKDYHEHHQJLYHQGXHFRQVLGHUDWLRQE\VDLGFRPPLVVLRQLQVWHDGRIEHLQJXVHGE\LWWRUHTXLUH
KLVSUHVHQFHDJDLQVWKLVZLOO
,WVKRXOGEHQRWHGWKDWWKH6ROLFLWRU*HQHUDO
VVHFRQGJURXQGIRUMXVWLI\LQJUHVSRQGHQWFRPPLVVLRQ
VUHYHUVDO
RUGHUUHTXLULQJSHWLWLRQHU
VSUHVHQFHZDVWKDWSHWLWLRQHUKDGFODLPHGLQWKLVFDVHWKDWSURFHHGLQJVIRUWKH
SHUSHWXDWLRQRIWHVWLPRQ\ZHUHDFWXDOO\DSDUWRIWULDOZLWKRXWKRZHYHUVWDWLQJUHVSRQGHQWV
RZQVWDQG
7KHSUHYDLOLQJGRFWULQHDVHQXQFLDWHGE\WKH&RXUWLQ3HRSOHYV(ODJRDSSHDUVTXLWHFOHDUWKDW,WLVQRWDWULDO
ZKHUHWKHGHIHQGDQWKDVWRLQWURGXFHKLVHYLGHQFH,WLVRQO\WDNLQJGRZQWKHVWDWHPHQWVRIWKHZLWQHVVHVIRUWKH
SURVHFXWLRQZLWKRSSRUWXQLW\RQWKHSDUWRIWKHGHIHQGDQWWRFURVVH[DPLQHWKHP7KH&RXUWFLWLQJ5XOHHRIWKH
5XOHVRI&RXUWQRZUHSURGXFHGLQ5XOHIRIWKH5HYLVHG5XOHVRI&RXUWDQGWKHJUHDWZHLJKWRIMXGLFLDO
DXWKRULWLHVDJDLQVWWKHDGPLVVLRQRIDGHSRVLWLRQRUSUHYLRXVWHVWLPRQ\RIDZLWQHVVZKRLVSUHVHQWLQFRXUWRULVDYDLODEOHDW
WKHDFWXDOWULDOVHWDVLGHWKHDSSHOODWHFRXUW
VGHFLVLRQDIILUPLQJFRQYLFWLRQWKHUHLQDQGUXOHGWKDWWKHWULDOFRXUWDQGWKH
DSSHOODWHFRXUWFRPPLWWHGUHYHUVLEOHHUURULQDGPLWWLQJWKHSHUSHWXDWHGWHVWLPRQLHVRUGHSRVLWLRQVRIWKHWZR$PHULFDQ
SURVHFXWLRQZLWQHVVHVZKHQWKH\ZHUHDFWXDOO\SUHVHQWLQFRXUWDWWKHWLPHRIWULDO
7KH&RXUWWKXVKHOGWKDW Wr x vK T Z k
,WLVFOHDUIURPWKHUXOHWKDWWKHWHVWLPRQ\RUGHSRVLWLRQRIDZLWQHVVPD\EHUHDGRUVXEPLWWHGLQ
HYLGHQFHRQO\ZKHQWKHGHSRQHQWLVGHDGRULQFDSDFLWDWHGWRWHVWLI\RUFDQQRWEHIRXQGLQWKH
3KLOLSSLQHV,IKHZDVSUHVHQWLQFRXUWWKHUHLVQRQHHGIRULQWURGXFLQJKLVGHSRVLWLRQLQHYLGHQFH
EHFDXVHKLVWHVWLPRQ\LVWKHEHVWHYLGHQFHHVSHFLDOO\LQDFDVHOLNHWKHSUHVHQWZKHUHWKHGHSRQHQW
LQJLYLQJKLVGHSRVLWLRQKDGQRWEHHQFURVVH[DPLQHGE\WKHGHIHQGDQWDOWKRXJKRIFRXUVHVDLG
IDLOXUHWRFURVVH[DPLQHPD\QRWEHODLGDWWKHGRRURIWKHSURVHFXWLRQ
7KHPRVWWKDWFDQEHVDLGWKHQLVWKDWWKHSHUSHWXDWLRQSURFHHGLQJVPD\EHFRQGLWLRQDOO\FRQVLGHUHGSDUWRIWKH
WULDORQO\ZKHQWKHGHSRQHQWZLWQHVVLVDWWKHWLPHRIWULDOGHDGRULQFDSDFLWDWHGWRWHVWLI\RUFDQQRWZLWKGXH
GLOLJHQFHEHIRXQGLQWKH3KLOLSSLQHV$EVHQWDQ\RIWKHVHFRQGLWLRQVLWLVQRWDSDUWRIWKHWULDODQGWKHZLWQHVVHV
PXVWJLYHWKHLUWHVWLPRQ\DQHZQRWWKHLUSUHYLRXVRUSHUSHWXDWHGGHSRVLWLRQDVWKHEHVWHYLGHQFHVXEMHFWWRWKH
FUXFLEOHRIFURVVH[DPLQDWLRQ
+HQFHSHWLWLRQHUKDGFDXVHWRFRPSODLQDJDLQVWWKHPLOLWDU\SURVHFXWRU
VDPELYDOHQWSRVWXUHWKDW,QWKHILUVWGD\
KHDUJXHGZHPXVWSURFHHGQRWZLWKVWDQGLQJWKHSHQGHQF\EHIRUHWKLV&RXUWRIWKHSHWLWLRQTXHVWLRQLQJWKH
FRPPLVVLRQ
VODFNRIMXULVGLFWLRQEHFDXVHWKLVLVQRWSDUWRIWKHWULDO1RZWKHUXOLQJDGYHUVHO\ZDVKDQGHGGRZQ
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
DOORZLQJSHWLWLRQHU
VZDLYHURIKLVSUHVHQFHEXWWKLVLVDSDUWRIWKHWULDOKH
VD\V
:LWKDOWKHVHTXHVWLRQVSUHVHQWHGVHULRXVLIQRWGLIILFXOWTXHVWLRQVRIODZDQGSDUWLFXODUO\WKHSHWLWLRQHU
VULJKW
WRWRWDOO\ZDLYHKLVSUHVHQFHDWWKHSURFHHGLQJVSUHVHQWHGDQLPSRUWDQWQHZTXHVWLRQWKDWUHTXLUHGDQ
DXWKRULWDWLYHUXOLQJIURPWKLV&RXUWEHFDXVHRIWKHQHZSURYLVLRQVRIWKH&RQVWLWXWLRQLQYROYHG
7KHJUDQWLQJRISHWLWLRQHU
VXUJHQWSOHDVRQ$SULOWREHJLYHQDSHULRGRIDWPRVWVHYHQGD\VWRILOHD
ZULWWHQPRWLRQIRUUHFRQVLGHUDWLRQRIWKHFRPPLVVLRQ
VUHYHUVDORUGHURIWKHVDPHGDWHUHTXLULQJKLVSUHVHQFHDW
HYHU\VWDJHRIWKHSURFHHGLQJVHVWLPDWHGWRODVWIURPWZRWRWKUHHPRQWKVDFFRUGLQJWRWKHPLOLWDU\SURVHFXWRU
DQGWRVHHNUHOLHIIURPWKLV&RXUWLQVWHDGRI\LHOGLQJWRWKHVWXEERUQLQVLVWHQFHRIWKHPLOLWDU\SURVHFXWRUWKDWWKH
SHUSHWXDWLRQEHGRQHLPPHGLDWHO\RQWKHJUDWXLWXRXVDVVHUWLRQWKDWSUHFLVHO\EHFDXVHLIWKHJURXQGLVGHOD\WKH
ZLWQHVVHVZKRVHWHVWLPRQLHVDUHVRXJKWWREHSUHVHQWHGZRXOGKDYHEHHQORQJGHDGLISHUSHWXDWLRQLVKHOGXSDQG
VXPPDULO\GHQ\LQJSHWLWLRQHU
VUHSHDWHGDSSHDOVDVIDVWDVWKH\ZHUHSUHVHQWHGDVJUDSKLFDOO\UHSRUWHGE\WKHSUHVV
ZRXOGKDYHDYHUWHGWULJJHULQJRIIWKHKXQJHUVWULNHFRPPHQFHGRQWKHVDPHGDWHE\SHWLWLRQHUZKRIHOWWKDWKHZDVXQMXVWO\
GHQLHGKLVULJKWRIZDLYHUDQGWKHODVWEDVLFULJKWRIDKXPDQEHLQJWREHOHIWDORQH
6XFKDQXUJHQWVHULRXVSOHDWREHJLYHQDUHDVRQDEOHWLPHDQGRSSRUWXQLW\WRVHHNUHFRXUVHIURPWKLV&RXUW
ZRXOGKDYHEHHQUHDGLO\DFFHGHGWRE\DUHJXODUFRXUWLQOLQHZLWKHVWDEOLVKHGMXGLFLDOXVDJHDQGSURFHGXUH7KH
6ROLFLWRU*HQHUDO
VUHSO\RI$SULODIWHUWKLV&RXUW
VLVVXDQFHRIWKHUHVWUDLQLQJRUGHURI$SULO
VXVSHQGLQJIXUWKHUSURFHHGLQJVE\WKHFRPPLVVLRQLQFRQWUDVWWRWKHPLOLWDU\SURVHFXWRU
VXQ\LHOGLQJVWDQG
LQFRQJUXRXVO\EUDQGLQJWKHILOLQJZLWKWKLV&RXUWRIWKHSHWLWLRQDWEDUDQGRIWKHVXSSOHPHQWDOSHWLWLRQVDV
GHOD\LQJWDFWLFVDQGGLODWRU\PRYHV²H[SUHVVO\ZHOFRPHGDQ\UXOLQJE\WKLV&RXUWZKHWKHUXQGHU3UHVLGHQWLDO
'HFUHH1RWKHSUHVHQFHRIWKHDFFXVHGLVQHFHVVDU\RULQGLVSHQVDEOH7KHGHFLVLRQRIWKLV&RXUWXSKROGLQJ
SHWLWLRQHU
VULJKWRIZDLYHUYLQGLFDWHVSHWLWLRQHU
VDVVHUWLRQEHIRUHUHVSRQGHQWPLOLWDU\FRPPLVVLRQRIKLVULJKWWRNHHSVLOHQW
WRVWD\DORQHQRWWRSDUWLFLSDWH²DULJKWZKLFKLVKLVWRH[HUFLVHRUQRW
,QVHHNLQJWRMXVWLI\WKHVXEVWLWXWLRQRIWKHH[HFXWLYHRUPLOLWDU\SURFHVVE\PLOLWDU\FRPPLVVLRQVIRUWKHMXGLFLDO
SURFHVVRISUHOLPLQDU\LQYHVWLJDWLRQDQGWULDOE\WKHUHJXODUFLYLOFRXUWVZLWKULJKWRIDSSHDOWRWKH6XSUHPH&RXUW
LQYRNHGE\SHWLWLRQHUDVKLVFRQVWLWXWLRQDOULJKWWKH6ROLFLWRU*HQHUDOLQKLVPHPRUDQGXPKDVPDGHDQXPEHURI
EDUHDVVHUWLRQVZLWKRXWHYHQDQ\IDFWXDODYHUPHQWVRUDOOHJDWLRQVLQVXSSRUWWKHUHRIDVIROORZV Wr x
vK T Z k
,QGHHGFLYLOFRXUWVPD\EHRSHQDQGXQGLVWXUEHGLQWKHH[HFXWLRQRIWKHLUIXQFWLRQVDQG\HWPD\EH
ZKROO\LQFRPSHWHQWWRDYHUWDWKUHDWHQHGGDQJHURUWRSXQLVKZLWKDGHTXDWHSURPSWLWXGHDQG
FHUWDLQW\WKHJXLOW\FRQVSLUDWRUV,QWLPHVRIUHEHOOLRQLWPD\RIWHQKDSSHQWKDWWKHMXGJHVDUHLQ
DFWLYHV\PSDWK\ZLWKWKHUHEHOVDQGFRXUWVWKHLUPRVWHIILFLHQWDOOLHV([SDUWH0LOOLJDQ:DOO/
(G>&KDVH&-FRQFXUULQJ@
7KHUHPD\EHRWKHUUHDVRQVMXVWLI\LQJWKHFUHDWLRQRIPLOLWDU\WULEXQDOV-XGJHVPD\EHXQZLOOLQJWR
WU\WKHUHEHOVRXWRIIHDURURWKHUPRWLYHV
[[[[[[[[[
,QRXUFDVHVWXG\VKRZVWKDW&RPPXQLVWVXEYHUVLRQDQGSURSDJDQGDDLPDWWKHSDUDO\]DWLRQRIWKH
ZLOODQGWKHWHUURULVPRIWKHSRSXODWLRQDQGWKHJRYHUQPHQWIXQFWLRQDU\,QPDQ\SDUWVRIWKHFRXQWU\
WKHUHEHOVVXFFHHGHGLQLQWLPLGDWLQJDQGVLOHQFLQJQRWRQO\WKHRIIHQGHGSDUWLHVDQGWKHLUZLWQHVVHV
EXWHYHQWKHMXGJHV
[[[[[[[[[
6WLOODQRWKHUUHDVRQIRUWULDOE\PLOLWDU\WULEXQDOVLVWKHSRVVLELOLW\WKDWWKHDFFXVHGPD\H[SORLW
SURFHGXUDODGYDQWDJHVDYDLODEOHLQWKHFLYLOFRXUWVDQGUHQGHUPLOLWDU\RSHUDWLRQVDJDLQVWWKH
UHEHOOLRQGLIILFXOW&LWLQJD:HVW9LUJLQLDFDVHZKHUHWKHFRXUWWKHUHLQUHDVRQHGWKDW
3DUWLFLSDQWVLQDQLQVXUUHFWLRQDUUHVWHGDQGFRPPLWWHGWRWKHFLYLODXWKRULWLHVFRXOGHDVLO\ILQG
PHDQVRIGHOD\LQJWULDODQGOLEHUDWHGRQEDLOUHWXUQWRWKHLQVXUUHFWLRQDU\FDPSDQGFRQWLQXHWR
UHQGHUDLGDQGWKHFLYLOWULEXQDOVDUHZKROO\LQDGHTXDWHWRWKHH[LJHQFLHVRIDVWDWHRIZDU
LQFLGHQWWRDQLQYDVLRQRULQVXUUHFWLRQ
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
7KHVHUHIOHFWLRQVRQWKHFRPSHWHQFHRIWKHFLYLOFRXUWVILQGQRMXVWLILFDWLRQLQWKHIDFWVRISXEOLFQRWLFHDQG
NQRZOHGJHWRZLW
$QXPEHURIMXGJHVRIFRXUWVRIILUVWLQVWDQFHKDYHEHHQUHPRYHGZLWKWKHDFFHSWDQFHRIWKHLUUHVLJQDWLRQVEXW
WKHUHLVQRWDVLQJOHUHFRUGHGFDVHZKHUHWKHMXGJHVZHUHLQDFWLYHV\PSDWK\ZLWKWKHUHEHOVDQGFRXUWVWKHLU
PRVWHIILFLHQWDOOLHV7KHUHLVQRWDVLQJOHNQRZQFDVHVLQFHWKHPDUWLDOODZSURFODPDWLRQRIMXGJHVEHLQJ
XQZLOOLQJWRWU\WKHUHEHOVRXWRIIHDURURWKHUPRWLYHVRURIWKHMXGJHVFRPSODLQDQWVDQGZLWQHVVHVKDYLQJEHHQ
LQWLPLGDWHGDQGVLOHQFHGE\UHEHOV
1HLWKHULVWKHUHDVLQJOHNQRZQLQVWDQFHRIDQDFFXVHGUHEHOKDYLQJH[SORLWHGSURFHGXUDODGYDQWDJHVDYDLODEOHLQ
WKHFLYLOFRXUWVDQGUHQGHULQJPLOLWDU\RSHUDWLRQVDJDLQVWWKHUHEHOOLRQGLIILFXOWVLQFHWKRVHVXVSHFWHGRI
SDUWLFLSDWLRQRUFRQVSLUDF\LQWKHFRPPXQLVWUHEHOOLRQKDYHEHHQDUUHVWHGZLWKRXWULJKWWREDLO*HQHUDO2UGHU1R
LVVXHGE\WKH3UHVLGHQWRQ2FWREHUUHVWRUHGWRWKHFLYLOFRXUWVDODUJHQXPEHURIFULPLQDOFDVHVWKDW
ZHUHWUDQVIHUUHGWRPLOLWDU\WULEXQDOVXSRQWKHSURFODPDWLRQRIPDUWLDOODZRQWKHH[SUHVVSUHPLVHVWKDWSRVLWLYH
VWHSVKDYHEHHQWDNHQWRUHYLWDOL]HWKHDGPLQLVWUDWLRQRIMXVWLFHDQGWKHQHZ&RQVWLWXWLRQDXWKRUL]HVWKH
UHRUJDQL]DWLRQRIWKHFRXUWVDQGDOWKRXJKWKHUHVWLOOH[LVWDUHDVRIDFWLYHUHEHOOLRQLQWKHFRXQWU\RQWKHZKROH
WKHUHKDVEHHQVXFKDQLPSURYHPHQWLQWKHJHQHUDOFRQGLWLRQVREWDLQLQJLQWKHFRXQWU\DQGLQWKHDGPLQLVWUDWLRQ
RIMXVWLFHDVWRZDUUDQWWKHUHWXUQRIVRPHRIWKHFULPLQDOFDVHVWRWKHMXULVGLFWLRQRIFLYLOFRXUWVDQG
7KHVHSUHPLVHVRI*21RDUHERUQHRXWE\WKHGDWDDQGSXEOLVKHGUHSRUWV7KHWZHQW\PLOLWDU\
FRPPLVVLRQVDPEXODWRU\DQGUHJLRQDOFRPPLVVLRQVKHDULQJFDVHVIURPWLPHWRWLPHLQPDUDWKRQKHDULQJVDV
WKHSUHVVXUHVRIWKHPLOLWDU\VHUYLFHDOORZWKHPLOLWDU\FRPPLVVLRQVWRFRQYHQHFRXOGQRWFRQFHLYDEO\PDWFKWKHZRUNDQG
FDVHVGLVSRVLWLRQRIDURXQGWKUHHKXQGUHGDQGWZHQW\FRXUWVRIILUVWLQVWDQFHDQGFLUFXLWFULPLQDOFRXUWVDOORYHUWKH
FRXQWU\ZRUNLQJFRQWLQXRXVO\DQGUHJXODUO\WKURXJKRXWWKH\HDU
7KHDUJXPHQWRISURFHGXUDOGHOD\VLQWKHFLYLOFRXUWVDQGQHHGRISURPSWDQGFHUWDLQSXQLVKPHQWKDVEHHQORQJ
FXWGRZQE\WKHODWH-XVWLFH)UDQN0XUSK\LQKLVFRQFXUULQJRSLQLRQLQ'XQFDQZKHQKHVWUHVVHGWKDWFLYLO
OLEHUWLHVDQGPLOLWDU\H[SHGLHQF\DUHRIWHQLUUHFRQFLODEOHDQGWKDWWKHVZLIWWULDODQGSXQLVKPHQWZKLFKWKHPLOLWDU\GHVLUHVLV
SUHFLVHO\ZKDWWKH%LOORI5LJKWVRXWODZV:HZRXOGEHIDOVHWRRXUWUXVWLIZHDOORZHGWKHWLPHLWWDNHVWRJLYHHIIHFWWR
FRQVWLWXWLRQDOULJKWVWREHXVHGDVWKHYHU\UHDVRQIRUWDNLQJDZD\WKRVHFRQVWLWXWLRQDOULJKWVDVIROORZVWr x
vK T Z k
'HOD\VLQWKHFLYLOFRXUWVDQGVORZQHVVLQWKHLUSURFHGXUHDUHDOVRFLWHGDVDQH[FXVHIRUVKHDULQJ
DZD\WKHLUFULPLQDOMXULVGLFWLRQDOWKRXJKODFNRINQRZOHGJHRIDQ\XQGXHGHOD\VLQWKH+DZDLLDQ
FRXUWVLVDGPLWWHG,WLVVDLGWKDWWKHPLOLWDU\
FDQQRWEURRNDGHOD\
DQGWKDW
WKHSXQLVKPHQWPXVWEH
VZLIWWKHUHLVDQHOHPHQWRIWLPHLQLWDQGZHFDQQRWDIIRUGWROHWWKHWULDOOLQJHUDQGEHSURWUDFWHG
7KLVPLOLWDU\DWWLWXGHWRZDUGFRQVWLWXWLRQDOSURFHVVHVLVQRWQRYHO&LYLOOLEHUWLHVDQGPLOLWDU\
H[SHGLHQF\DUHRIWHQLUUHFRQFLODEOH,WGRHVWDNHWLPHWRVHFXUHDJUDQGMXU\LQGLFWPHQWWRDOORZWKH
DFFXVHGWRSURFXUHDQGFRQIHUZLWKFRXQVHOWRSHUPLWWKHSUHSDUDWLRQRIDGHIHQVHWRIRUPDSHWLW
MXU\WRUHVSHFWWKHHOHPHQWDU\UXOHVRISURFHGXUHDQGHYLGHQFHDQGWRMXGJHJXLOWRULQQRFHQFH
DFFRUGLQJWRDFFHSWHGUXOHVRIODZ%XWH[SHULHQFHKDVGHPRQVWUDWHGWKDWVXFKWLPHLVZHOOVSHQW,W
LVWKHRQO\PHWKRGZHKDYHRILQVXULQJWKHSURWHFWLRQRIFRQVWLWXWLRQDOULJKWVDQGRIJXDUGLQJDJDLQVW
RSSUHVVLRQ7KHVZLIWWULDODQGSXQLVKPHQWZKLFKWKHPLOLWDU\GHVLUHVLVSUHFLVHO\ZKDWWKH%LOORI
5LJKWVRXWODZV:HZRXOGEHIDOVHWRRXUWUXVWLIZHDOORZHGWKHWLPHLWWDNHVWRJLYHHIIHFWWR
FRQVWLWXWLRQDOULJKWVWREHXVHGDVWKHYHU\UHDVRQIRUWDNLQJDZD\WKRVHULJKWV,WLVRXUGXW\DVZHOO
DVWKDWRIWKHPLOLWDU\WRPDNHVXUHWKDWVXFKULJKWVDUHUHVSHFWHGZKHQHYHUSRVVLEOHHYHQWKRXJK
WLPHPD\EHFRQVXPHG
$VDOUHDG\LQGLFDWHGDERYHLWVKRXOGEHQRWHGWKDWQRDFWXDOFDVHRIXQGXHGHOD\VLQWKHSURVHFXWLRQRIFULPLQDO
FDVHVLQWKHUHJXODUFLYLOFRXUWVKDVEHHQFODLPHGE\UHVSRQGHQWVQRUKDVLWEHHQVKRZQWKDWPLOLWDU\QHFHVVLW\RU
SXEOLFGDQJHUUHTXLUHWKDWSHWLWLRQHUEHGHSULYHGRIKLVULJKWVWRGXHSURFHVVDQGWRWKHFROGQHXWUDOLW\RIDQ
LPSDUWLDOWULEXQDOXQGHUWKHMXGLFLDOSURFHVVVKRXOGWKHUHLQYHVWLJDWLRQRUGHUHGE\WKH3UHVLGHQWELQGKLPRYHUIRU
WULDO
7KH6ROLFLWRU*HQHUDO
VVXEPLWWDOWKDWWKHGHFUHHVDQGRUGHUVUHODWLQJWRPLOLWDU\FRPPLVVLRQVDUHQRZSDUWRI
WKHODZRIWKHODQGDQGDUHEH\RQGTXHVWLRQDQGWKDWDVWKHWULDODQGSXQLVKPHQWRIFLYLOLDQVE\PLOLWDU\WULEXQDOV
XQGHUWKHFLUFXPVWDQFHVDUHYDOLGDQGFRQVWLWXWLRQDOREMHFWLRQVEDVHGRQGLIIHUHQFHVEHWZHHQFLYLODQGPLOLWDU\
FRXUWVDUHLPPDWHULDOLVFRQVWLWXWLRQDOO\LQILUPDQGXQWHQDEOH
7KH6ROLFLWRU*HQHUDO
VSUHPLVHLVWKDWZLWKWKHUDWLILFDWLRQRIWKHQHZ&RQVWLWXWLRQPDUWLDOODZDVSURFODLPHGE\
WKH3UHVLGHQWEHFDPHSDUWRIWKHODZRIWKHODQGDQGQRZGHULYHVLWVYDOLGLW\IURPWKHQHZFRQVWLWXWLRQDQGWKDW
E\YLUWXHRIVHFWLRQRIWKH7UDQVLWRU\3URYLVLRQV WKHGHFUHHVDQGRUGHUVRQWKHPLOLWDU\FRPPLVVLRQVDUHQRZDOVR
SDUWRIWKHODZRIWKHODQGDQGEH\RQGTXHVWLRQVWDWHVDUDWKHUSUROL[DQGVZHHSLQJFRQFHSWWKDWFDQQRWEHSUHFLSLWDWHO\
VDQFWLRQHG
0DUWLDOODZKDVQRWEHFRPHSDUWRIWKHODZRIWKHODQGDQGEH\RQGTXHVWLRQE\YLUWXHRIWKHFRPLQJLQWRIRUFHRI
WKH&RQVWLWXWLRQ,QIDFWWKHVDLG&RQVWLWXWLRQKDVSUHFLVHO\UHSURGXFHGWKH&RQVWLWXWLRQ
VFRPPDQGHU
LQFKLHIFODXVHZLWKSRZHUWRGHFODUHPDUWLDOODZOLPLWHGWRH[DFWO\WKHVDPHFDXVHVRILQYDVLRQLQVXUUHFWLRQRU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
UHEHOOLRQRULPPLQHQWGDQJHUDQGZLWKH[DFWO\WKHVDPHUHTXLUHPHQWWKDWWKHSXEOLFVDIHW\UHTXLUHLW*RLQJE\
WKHGRFWULQHHQXQFLDWHGLQ/DQVDQJYV*DUFLDE\DXQDQLPRXV&RXUWWKHH[LVWHQFHRIIDFWXDOEDVHVIRUWKHSURFODPDWLRQ
DQGFRQWLQXDWLRQRIPDUWLDOODZPD\XQGHUWKHVDLGSURYLVLRQEHMXGLFLDOO\LQTXLUHGLQWRLQRUGHUWRGHWHUPLQHWKHFRQVWLWXWLRQDO
VXIILFLHQF\WKHUHRIDVZHOODVWRFLUFXPVFULEHWKHFRQVWUDLQWVWKHUHRILQSDUWLFXODUFDVHVZKHUHWKH\FODVKZLWKDQ
LQGLYLGXDO
VFRQVWLWXWLRQDOULJKWVZLWKLQWKHERXQGVRIQHFHVVLW\IRUWKHSXEOLFHQGVDQGWKHSXEOLFVDIHW\DVLQGHHGWKLV
&RXUWGLGSDVVRQVXFKTXHVWLRQVLQWKH+DEHDV&RUSXVFDVHV$QGDVWKH3UHVLGHQWH[SUHVVO\VWDWHGDWKLVZRUOGZLGH
VDWHOOLWHSUHVVFRQIHUHQFHRI6HSWHPEHUWKHGXUDWLRQRIPDUWLDOODZLVRQO\DVORQJDVQHFHVVDU\DVSHUWKH
IROORZLQJSHUWLQHQWH[FHUSWRIKLVVWDWHPHQWWKHUHRQ Wr x
vK T Z k
2IFRXUVHWKHSUREOHPKHUHLVLI\RXVD\WKDWPDUWLDOODZOHDGVWRGHPRFUDF\KRZORQJDUH\RX
JRLQJWRPDLQWDLQPDUWLDOODZ",VD\DJDLQWKDWRQO\DVORQJDVQHFHVVDU\$VWKHFRQVWLWXWLRQDOLVWVSXW
LWQHFHVVLW\JDYHOLIHWRPDUWLDOODZDQGPDUWLDOODZFDQQRWFRQWLQXHXQOHVVQHFHVVLW\DOORZVLWWROLYH
7KHFLWHG7UDQVLWRU\3URYLVLRQNQRZQDVWKHYDOLGDWLQJSURYLVLRQSXWVWKHLPSULPDWXURIDODZXSRQWKH3UHVLGHQW
V
DFWVDQGGHFUHHVXQGHUPDUWLDOODZZKLFKZHUHQRWZLWKLQRUEH\RQGKLVDOORFDWHGFRQVWLWXWLRQDOSRZHUV$VDSWO\
VWDWHGE\-XVWLFH0XxR]3DOPDLQKHUVHSDUDWHRSLQLRQLQWKH+DEHDV&RUSXVFDVHVWKHSHRSOHFRXOGQRWE\WKH
&RQVWLWXWLRQKDYHWKURZQDZD\DOOWKHLUSUHFLRXVOLEHUWLHVWKHVDFUHGLQVWLWXWLRQVHQVKULQHGLQWKHLU
&RQVWLWXWLRQIRUWKDWZRXOGEHWKHUHVXOWLIZHVD\WKDWWKHSHRSOHKDYHVWDPSHGWKHLUDSSURYDORQDOOWKHDFWVRI
WKH3UHVLGHQWH[HFXWHGDIWHUWKHSURFODPDWLRQRIPDUWLDOODZLUUHVSHFWLYHRIDQ\WDLQWRILQMXVWLFHDUELWUDULQHVV
RSSUHVVLRQRUFXOSDEOHYLRODWLRQRIWKH&RQVWLWXWLRQWKDWPD\FKDUDFWHUL]HVXFKDFWV6XUHO\WKHSHRSOHDFWLQJ
WKURXJKWKHLUFRQVWLWXWLRQDOGHOHJDWHVFRXOGQRWKDYHZULWWHQDIXQGDPHQWDOODZZKLFKJXDUDQWHHVWKHLUULJKWVWR
OLIHOLEHUW\DQGSURSHUW\DQGDWWKHVDPHWLPHLQWKHVDPHLQVWUXPHQWSURYLGHIRUDZHDSRQWKDWFRXOGVSHOOGHDWK
WRWKHVHULJKWV
7KHFRQWHQWLRQWKDWWKHGHFUHHVDQGRUGHUVRQPLOLWDU\FRPPLVVLRQVDVSDUWRIWKHODZRIWKHODQGDUHEH\RQG
TXHVWLRQUHDOO\EHJVWKHTXHVWLRQIRUDVZDVVWUHVVHGE\-XVWLFH0XxR]3DOPDLWZRXOGEHLQFRQJUXRXVWKDW
ZKLOHWKHDFWVRIWKHUHJXODU1DWLRQDO$VVHPEO\DVWKHSHUPDQHQWUHSRVLWRU\RIOHJLVODWLYHSRZHUDUHVXEMHFWWR
MXGLFLDOUHYLHZWKHDFWVRILWVWHPSRUDU\VXEVWLWXWHWKDWLVWKHLQFXPEHQW3UHVLGHQWVXFKDVWKHGHFUHHVDQG
RUGHUVLQTXHVWLRQZRXOGEHFODLPHGWREHEH\RQGTXHVWLRQ
,QGHHGWKHPDMRULW\UHVROXWLRQUHFRJQL]HVWKDW2IFRXUVHIURPWKHIDFWWKDWWKH3UHVLGHQWKDVWKLVUDQJHRI
GLVFUHWLRQLWGRHVQRWQHFHVVDULO\IROORZWKDWHYHU\DFWLRQKHPD\WDNHQRPDWWHUKRZXQMXVWLILHGE\WKHH[LJHQF\
ZRXOGEHDUWKHLPSULPDWXURIYDOLGLW\
:KLOHWKHGHFUHHVDQGRUGHUVRQPLOLWDU\WULEXQDOVZHUHPDGHSDUWRIWKHODZRIWKHODQGE\WKHFLWHG7UDQVLWRU\
3URYLVLRQDVVXPLQJWKDWWKH\KDGEHHQSURSHUO\VXEPLWWHGIRUWKHSXUSRVHVWLOOWKLVJHQHUDODQGWUDQVLWRU\
SURYLVLRQFDQLQQRZD\VXSHUVHGHRUQXOOLI\WKHVSHFLILFDOORFDWLRQRIMXULVGLFWLRQDQGMXGLFLDOSRZHUWRWKH
6XSUHPH&RXUWDQGWKHUHJXODUFRXUWVRIMXVWLFHDVHVWDEOLVKHGE\ODZXQGHU$UWLFOH;VHFWLRQRIWKH&RQVWLWXWLRQ
QRUWKHLUSURSHUH[HUFLVHRIMXULVGLFWLRQWRWKHH[FOXVLRQRIQRQMXGLFLDODJHQFLHVXQGHUVHFWLRQRI$UWLFOH;9,,
ZKLFKSURYLGHVWKDW Wr x
vK T Z k
6(&$OOFRXUWVH[LVWLQJDWWKHWLPHRIWKHUDWLILFDWLRQRIWKLV&RQVWLWXWLRQVKDOOFRQWLQXHDQGH[HUFLVH
WKHLUMXULVGLFWLRQXQWLORWKHUZLVHSURYLGHGE\ODZLQDFFRUGDQFHZLWKWKLV&RQVWLWXWLRQDQGDOOFDVHV
SHQGLQJLQVDLGFRXUWVVKDOOEHKHDUGWULHGDQGGHWHUPLQHGXQGHUWKHODZVWKHQLQIRUFH7KH
SURYLVLRQVRIWKHH[LVWLQJ5XOHVRI&RXUWQRWLQFRQVLVWHQWZLWKWKLV&RQVWLWXWLRQVKDOOUHPDLQRSHUDWLYH
XQOHVVDPHQGHGPRGLILHGRUUHSHDOHGE\WKH6XSUHPH&RXUWRUWKH1DWLRQDO$VVHPEO\$UW;9,,
,QVRIDUDVWKHTXHVWLRQHGGHFUHHVDQGRUGHUVHQFURDFKHGXSRQWKHMXULVGLFWLRQRIWKHUHJXODUFRXUWVRYHUWKHWULDO
RIFLYLOLDQVWKH\PXVWEHGHHPHGDEURJDWHGE\WKHFLWHGSURYLVLRQVRIWKH&RQVWLWXWLRQLWVHOILQDFFRUGDQFHZLWK
WKHHVWDEOLVKHGUXOHWKDWVWDWXWHVDVZHOODVH[HFXWLYHRUGHUVDQGUHJXODWLRQVWKDWDUHLQFRQVLVWHQWZLWKDQG
WUDQVJUHVVWKHSURYLVLRQVRIDQHZ&RQVWLWXWLRQPXVWEHGHHPHGUHSHDOHGWKHUHE\
$VQRWHGLQWKHZULWHU
VSUHYLRXVRSLQLRQVWKHVSHFLILFOHJLVODWLYHSRZHUVJUDQWHGWKHLQFXPEHQW3UHVLGHQWLQVHFWLRQ
RIWKHDUWLFOHRQ7UDQVLWRU\3URYLVLRQVDUHOLPLWHGWRPRGLI\LQJUHYRNLQJRUVXSHUVHGLQJWKHLQFXPEHQW3UHVLGHQW
V
YDOLGDWHGDFWVDQGGHFUHHVGRQHRULVVXHGSULRUWRWKHSURFODLPHGUDWLILFDWLRQRQ-DQXDU\RIWKH&RQVWLWXWLRQ
1RSRVWUDWLILFDWLRQOHJLVODWLYHSRZHUVDUHWKHUHLQJUDQWHGWKHLQFXPEHQW3UHVLGHQWDQGVXFKOHJLVODWLYHSRZHURUPRUH
DFFXUDWHO\PLOLWDU\SRZHUXQGHUPDUWLDOUXOHWKDWKDVEHHQH[HUFLVHGE\KLPWKHUHDIWHULQWKHDEVHQFHRIDSDUOLDPHQWPXVW
UHVWRQWKHODZRIQHFHVVLW\RISUHVHUYDWLRQRIWKH6WDWHDQGWKHGHFUHHLQJRIVXFKQHFHVVDU\PHDVXUHVDVZLOOVDIHJXDUG
WKH5HSXEOLFDQGVXSSUHVVWKHUHEHOOLRQRULQYDVLRQ2QWKHRWKHUKDQGVHFWLRQRIWKHVDPH$UWLFOHH[SUHVVO\UHVHUYHVWR
WKH1DWLRQDO$VVHPEO\WKHSRZHUWRDPHQGPRGLI\RUUHSHDODOOH[LVWLQJODZVQRWLQFRQVLVWHQWZLWKWKLV&RQVWLWXWLRQZKLFK
VKDOOUHPDLQRSHUDWLYH$PRQJVXFKH[LVWLQJODZVZKRVHDPHQGPHQWPRGLILFDWLRQRUUHSHDODUHUHVHUYHGWRWKH1DWLRQDO
$VVHPEO\DUHWKHODZVKHUHLQLQYROYHGYL]WKH$QWL6XEYHUVLRQ$FW5HSXEOLF$FW1RDQGWKHH[LVWLQJ5XOHVRI&RXUW
ZLWKWKHLUVDIHJXDUGVIRUWKHULJKWVRIDQDFFXVHGGHIHQGDQW$WDQ\UDWHDQ\VXFKSUHVLGHQWLDOGHFUHHVDQGRUGHUV
FDQQRWSUHMXGLFHWKHYHVWHGULJKWVRIDGHIHQGDQWDFFXVHGDVWRSUHPDUWLDOODZRIIHQVHVDOOHJHGO\FRPPLWWHGE\KLPQRUEH
JLYHQDQDGYHUVHH[SRVWIDFWRHIIHFWDJDLQVWKLP
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
5HVSRQGHQWV
DVVXPSWLRQRIWKHYDOLGLW\RIPLOLWDU\WULDOVRIFLYLOLDQVDQGFRQFOXVLRQWKDWREMHFWLRQVEDVHGRQ
GLIIHUHQFHVEHWZHHQFLYLODQGPLOLWDU\FRXUWVDUHLPPDWHULDOPXVWQHFHVVDULO\IDLO
,WKDVEHHQVKRZQWKDWUHVSRQGHQWVKDYHIDLOHGWRVKRZWKHH[LVWHQFHRIVRPHRYHUSRZHULQJIDFWRUWKDWPDNHVD
UHFRJQLWLRQRISHWLWLRQHU
VDQGRWKHUFLYLOLDQV
FRQVWLWXWLRQDOULJKWVWRGXHSURFHVVLQFRPSDWLEOHZLWKWKHSXEOLF
VDIHW\DVWRZDUUDQWWKHWHPSRUDU\FDVWLQJDVLGHRUVXVSHQVLRQRIVXFKULJKWV2QWKHFRQWUDU\WKHLVVXDQFHRI
WKHUHLQYHVWLJDWLRQRUGHUXQGHU$GPLQLVWUDWLYH2UGHU1RIRUWKHQRQPLOLWDU\6SHFLDO5HLQYHVWLJDWLQJ
&RPPLWWHHFUHDWHGWKHUHXQGHUWRFRQGXFWDSUHOLPLQDU\LQYHVWLJDWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHUVKRZVWKDW
QRHOHPHQWRISXEOLFVDIHW\LVKHUHLQLQYROYHG
7KHYHVWHGULJKWVLQYRNHGE\SHWLWLRQHUDVHVVHQWLDOHOHPHQWVRIKLVEDVLFULJKWWRGXHSURFHVVZKLFKDUHQRW
JUDQWHGKLPXQGHUWKHGHFUHHVDQGRUGHUVIRUKLVWULDOE\UHVSRQGHQWPLOLWDU\FRPPLVVLRQDUHVXEVWDQWLDODQG
YLWDOYL]KLVULJKWWRDSUHOLPLQDU\LQYHVWLJDWLRQDVDSSDUHQWO\UHFRJQL]HGE\$GPLQLVWUDWLYH2UGHU1RDVWR
WKHQRQVXEYHUVLRQFKDUJHVZLWKULJKWWRFRXQVHODQGRIFURVVH[DPLQDWLRQRIWKHZLWQHVVHVDJDLQVWKLPDQGWKH
ULJKWXQGHUWKH$QWLVXEYHUVLRQ$FWWRDSUHOLPLQDU\LQYHVWLJDWLRQE\WKHSURSHUFRXUWRIILUVWLQVWDQFHKLVULJKWDVD
FLYLOLDQWREHWULHGE\MXGLFLDOSURFHVVE\WKHUHJXODULQGHSHQGHQWFLYLOLDQFRXUWVSUHVLGHGE\SHUPDQHQWMXGJHV
ZLWKWHQXUHDQGZLWKDOOWKHVSHFLILFVDIHJXDUGVHPERGLHGLQWKHMXGLFLDOSURFHVVDQGKLVULJKWWRDSSHDOLQFDSLWDO
FDVHVWRWKLV&RXUWZKHUHLQDTXDOLILHGPDMRULW\RIWHQDIILUPDWLYHYRWHVIRUDIILUPDQFHRIWKHGHDWKSHQDOW\LV
UHTXLUHG
7KHRUGLQDU\OD\PDQDVZHOODVSUDFWLWLRQHUDUHWRWDOO\XQIDPLOLDUZLWKWKHVXPPDU\UXOHVDQGSURFHGXUHVRI
PLOLWDU\FRPPLVVLRQVDVFRPSDUHGWRWKHHVWDEOLVKHGSURFHGXUHVXQGHUWKH5XOHVRI&RXUWEHIRUHWKHFLYLOLDQ
FRXUWVZKLFKSHUVHSODFHVWKHFLYLOLDQRQWULDOEHIRUHDPLOLWDU\FRPPLVVLRQLQDGLVDGYDQWDJHRXVSRVLWLRQ$
FXUVRU\UHYLHZRIWKHWUDQVFULSWVIXUQLVKHGWKH&RXUWVKRZVWKHVHSHFXOLDULWLHVWKDWQRUPDOO\ZRXOGQRWRFFXULQ
FLYLOLDQWULDOVDVIROORZV
7KHVZHDULQJLQDWWKHFRPPHQFHPHQWRIWKHSHUSHWXDWLRQSURFHHGLQJVRQ0DUFKRIWZRQHZO\
DSSRLQWHGPHPEHUV
7KHZLWKGUDZDORQ0DUFKRIWKHFKDUJHVDJDLQVW+XN&RPPDQGHUV0HORG\DQG3XVDZKRZHUH
RULJLQDOO\QDPHGDVFRDFFXVHGSULQFLSDOVLQWKHIRXUVXEYHUVLRQFKDUJHVDQGWKHLUXWLOL]DWLRQDVVWDWHZLWQHVVHV
ZKLFKDFFRUGLQJWRWKHFRPPLVVLRQ
VODZPHPEHUDXWRPDWLFDOO\WDNHVHIIHFW7KHPLOLWDU\FRPPLVVLRQFDQQRW
SDVVXSRQVXFKZLWKGUDZDOLQFRQWUDVWWRWKHSURFHGXUHLQWKHFLYLOLDQFRXUWVZKHUHWKHGLVFKDUJHRIDFFXVHGSHUVRQV
WREHVWDWHZLWQHVVHVPXVWPHHWFHUWDLQUHTXLUHPHQWVLQWKHLQWHUHVWRIWUXWKDQGMXVWLFHHJWKDWWKHGHIHQGDQWWREH
GLVFKDUJHGGRHVQRWDSSHDUWREHWKHPRVWJXLOW\DQGKDVQRWDWDQ\WLPHEHHQFRQYLFWHGRIDQ\RIIHQVHLQYROYLQJPRUDO
WXUSLWXGHDVGHWHUPLQHGLQWKHMXGJPHQWRIWKHFRXUWDQG
$VIDUDVLVJHQHUDOO\NQRZQWKHPLOLWDU\FRPPLVVLRQDWWKHFRQFOXVLRQRIWKHWULDOWDNHVDVHFUHWZULWWHQEDOORWZLWK
DWOHDVWWZRWKLUGVRIWKHPHPEHUVSUHVHQWWRDUULYHDWLWVVXPPDU\ILQGLQJVRI*XLOW\RU1RW*XLOW\ZLWKRXW
HQWHULQJDZULWWHQGHFLVLRQZKLFKVKDOOFOHDUO\DQGGLVWLQFWO\VWDWHWKHIDFWVDQGWKHODZRQZKLFKLWLVEDVHGDVLV
PDQGDWRULO\UHTXLUHGE\WKH&RQVWLWXWLRQRIHYHU\GHFLVLRQRIDFLYLOFRXUWRIUHFRUG
7KHWUDQVFHQGHQWDOFRQVWLWXWLRQDOLVVXHVLQYROYHGLQWKHFDVHDWEDUZKLFKWKHPDMRULW\KDVUHVROYHGWRGHFLGH
RQWKHPHULWVGHVSLWHSHWLWLRQHU
VZLWKGUDZDOPRWLRQFDOOIRUDGMXGLFDWLRQRQWKHEDVLVRIHQVKULQHGSULQFLSOHVRI
FRQVWLWXWLRQDOLVPDQGWKHUXOHRIODZDVXQHTXLYRFDEO\HVSRXVHGE\WKH3UHVLGHQWKLPVHOI7KHFDVHDWEDU
DVVHUWVWKHULJKWRIFLYLOLDQVWRWKHMXGLFLDOSURFHVVRIFLYLOLDQWULDOVE\WKHUHJXODUFLYLOFRXUWVSDUWLFXODUO\IRUSUH
PDUWLDOODZRIIHQVHVDVDJDLQVWWKHH[HFXWLYHSURFHVVRIWULDOE\PLOLWDU\WULEXQDOVDQGKLQJHVRQWKLV&RXUW
V
XSKROGLQJWKHSULQFLSOHWKDWWKHLQGLYLGXDOLQWKHDEVHQFHRIRYHUSRZHULQJQHFHVVLW\RUSXEOLFGDQJHUPXVWEH
DFFRUGHGKLVFRQVWLWXWLRQDOULJKWVDVJXDUDQWHHGE\WKH%LOORI5LJKWVHYHQLQDVWDWHRIPDUWLDOODZ$FRUROODU\
SULQFLSOHZRXOGEHWKDWWKHFRQWLQXDWLRQRIPDUWLDOODZIRULQVWLWXWLRQDOL]DWLRQRIUHIRUPVLVQRWLQFRPSDWLEOHZLWK
UHFRJQL]LQJWKHIXQGDPHQWDOOLEHUWLHVJUDQWHGLQWKH%LOORI5LJKWV
7KH%LOORI5LJKWVRIWKH&RQVWLWXWLRQVSHFLILHVWKHSRZHUVWKDWKDYHEHHQZLWKKHOGIURPWKHJRYHUQPHQWDQGDUH
UHVHUYHGWRWKHSHRSOH%XWWKHIUHHGRPJXDUDQWHHGE\LWDJDLQVWWKHRYHUZKHOPLQJSRZHURIWKH6WDWHZRXOGEH
PHDQLQJOHVVDQGRIQRXVHXQOHVVFLWL]HQVFRXOGYLQGLFDWHDQGHQIRUFHWKHPDJDLQVWWKHJRYHUQPHQWRIILFLDOVDQGDJHQFLHV
E\SURSHUSURFHGXUHVLQWKHFRXUWV$VKHOGE\WKH&RXUWLQ*DUFLDYV0DFDUDLJ,QDV\VWHPOLNHRXUVHYHU\H[HUFLVHRI
JRYHUQPHQWDOFRPSHWHQFHZKHWKHUFRPLQJIURPWKH3UHVLGHQWRUIURPWKHORZHVWRIILFLDOPD\EHFKDOOHQJHGLQFRXUWLQDQ
DSSURSULDWHOHJDO
SURFHHGLQJ
$VZDVVWUHVVHGE\WKHODWH&KLHI-XVWLFH6WRQHLQ'XQFDQVXSUDH[HFXWLYHDFWLRQLVQRWSURRIRILWVRZQ
QHFHVVLW\DQGWKHPLOLWDU\
VMXGJPHQWKHUHLVQRWFRQFOXVLYHWKDWHYHU\DFWLRQWDNHQSXUVXDQWWRWKHGHFODUDWLRQRI
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
PDUWLDOODZZDVMXVWLILHGE\WKHH[LJHQF\,QWKHVXEVWLWXWLRQRIPDUWLDOODZFRQWUROVIRUWKHRUGLQDU\FLYLOSURFHVVHV
ZKDWDUHWKHDOORZDEOHOLPLWVRIPLOLWDU\GLVFUHWLRQDQGZKHWKHURUQRWWKH\KDYHEHHQRYHUVWHSSHGLQDSDUWLFXODU
FDVHDUHMXGLFLDOTXHVWLRQV
6WHUOLQJY&RQVWDQWLQVXSUD86/HG6&W
7KH&RXUW
VMXGJPHQWDWEDULVWKHUHIRUHRIWKHXWPRVWLPSRUWDQFHVLQFHXQGHU$UWLFOH&LYLO&RGH-XGLFLDO
GHFLVLRQVDSSO\LQJRULQWHUSUHWLQJWKHODZVRUWKH&RQVWLWXWLRQVKDOOIRUPDSDUWRIWKHOHJDOV\VWHPRIWKH
3KLOLSSLQHV$VGHILQHGE\.QRYLW]WKH&RQVWLWXWLRQDQGWKHODZVHQDFWHGE\WKHOHJLVODWXUHVDQGWKHMXGJPHQWV
DQGRUGHUVRIWKHFRXUWVFRQVWLWXWHWKH5XOHRI/DZ
7KH3UHVLGHQWKDVRIWHQGHFODUHGWKDW7KH1HZ6RFLHW\ORRNVWRLQGLYLGXDOULJKWVDVDPDWWHURISDUDPRXQW
FRQFHUQUHPRYHGIURPWKHYLFLVVLWXGHVRISROLWLFDOFRQWURYHUV\DQGEH\RQGWKHUHDFKRIPDMRULWLHV:HDUH
SOHGJHGWRXSKROGWKH%LOORI5LJKWVDQGDVWKHH[LJHQFLHVPD\VRDOORZZHDUHGHWHUPLQHGWKDWHDFKSURYLVLRQ
VKDOOEHH[HFXWHGWRWKHIXOOHVW
:KLOHVWUHVVLQJWKDWPDUWLDOODZLVDWHPSRUDU\FRQVWLWXWLRQDOH[SHGLHQWRIVDIHJXDUGLQJWKH5HSXEOLFDQGD
WHPSRUDU\SKDVHLQWKHGHYHORSPHQWRIRXU
FRXQWU\WKH3UHVLGHQWKDVWKXVFDOOHGIRUWKH&RQVWLWXWLRQWRUHPDLQILUPDQGVWDEOHKDVUHMHFWHGWKHH[HUFLVHRI
SRZHUWKDWFDQEHLGHQWLILHGPHUHO\ZLWKDUHYROXWLRQDU\JRYHUQPHQWWKDWPDNHVLWVRZQODZDQGKDVFDOOHGRQHYHU\
FLWL]HQWRUHPDLQVWHDGIDVWRQWKHUXOHRIODZDQGWKH&RQVWLWXWLRQDVIROORZV Wr x
vK T Z k
:KRHYHUKHPD\EHDQGZKDWHYHUSRVLWLRQKHPD\KDSSHQWRKDYHZKHWKHULQJRYHUQPHQWRU
RXWVLGHJRYHUQPHQWLWLVDEVROXWHO\QHFHVVDU\QRZWKDWZHORRNVROHPQO\DQGSHUFHSWLYHO\LQWRWKH
&RQVWLWXWLRQDQGWU\WRGLVFRYHUIRURXUVHOYHVZKDWRXUUROHLVLQWKHVXFFHVVIXOLPSOHPHQWDWLRQRIWKDW
&RQVWLWXWLRQ:LWKWKLVWKRXJKWWKHUHIRUHZHFDQDJUHHRQRQHWKLQJDQGWKDWLV/HWDOORIXVDJHOHW
DOORIXVWKHQSDVVDZD\DVDSDFHLQWKHGHYHORSPHQWRIRXUFRXQWU\EXWOHWWKH&RQVWLWXWLRQUHPDLQ
ILUPDQGVWDEOHDQGOHWLQVWLWXWLRQVJURZLQVWUHQJWKIURPGD\WRGD\IURPDFKLHYHPHQWWR
DFKLHYHPHQWDQGVRORQJDVWKDW&RQVWLWXWLRQVWDQGVZKRHYHUPD\WKHPDQLQSRZHUEHZKDWHYHU
PD\KLVSXUSRVHEHWKDW&RQVWLWXWLRQZLOOJXLGHWKHSHRSOHDQGQRPDQKRZHYHUSRZHUIXOKHPD\EH
ZLOOGDUHWRGHVWUR\DQGUHFNWKHIRXQGDWLRQRIVXFKD&RQVWLWXWLRQ
7KHVHDUHWKHUHDVRQVZK\,SHUVRQDOO\KDYLQJSURFODLPHGPDUWLDOODZKDYLQJEHHQRIWHQLQGXFHGWR
H[HUFLVHSRZHUWKDWFDQEHLGHQWLILHGPHUHO\ZLWKDUHYROXWLRQDU\JRYHUQPHQWKDYHUHPDLQHG
VWHDGIDVWRQWKHUXOHRIODZDQGWKH&RQVWLWXWLRQ,ZRXOGUHFRPPHQGWKDWLIWKH3UHVLGHQWFDQGRWKLV
LWWKH3UHVLGHQWFDQUHVWUDLQWKHH[HUFLVHRIKLVRZQSRZHUVHYHU\FLWL]HQIRUKLVSDUWVKRXOGQRWILQGLW
DEXUGHQWRSDUWLFLSDWHLQWKLVDFWRIVHOIGHQLDODQGVHOIDEQHJDWLRQDVDQHDUQHVWWRWKHIXWXUHRIRXU
UDFHDQGRXUSHRSOH
7KLVLVEXWWRVWDWHWKDWQRRQHVKRXOGEHDERYHRUEHORZWKHODZDQGWRUHLWHUDWHWKHFODVVLFGLFWXPWKDW7KH
&RQVWLWXWLRQLVDODZIRUUXOHUVDQGSHRSOHHTXDOO\LQZDUDQGLQSHDFHDQGFRYHUVZLWKWKHVKLHOGRILWV
SURWHFWLRQDOOFODVVHVRIPHQDWDOOWLPHVDQGXQGHUDOOFLUFXPVWDQFHV,QWKHUHODWLYHO\UHFHQWFDVHRI3KLO
%ORRPLQJ0LOOV(PSOR\HHV
2UJDQL]DWLRQYV3KLO%ORRPLQJ0LOOV0U-XVWLFH0DNDVLDUUHVWDWHGIRUWKH&RXUWFHUWDLQ
EDVLFFRQFHSWVDQGSULQFLSOHVRIFRQVWLWXWLRQDOLVPZKLFKEHDUUHSURGXFLQJDVWKH\FRQFHUQWKHLVVXHVDWEDUDVIROORZV Wr x
vK T Z k
,QDGHPRFUDF\WKHSUHVHUYDWLRQDQGHQKDQFHPHQWRIWKHGLJQLW\DQGZRUWKRIWKHKXPDQ
SHUVRQDOLW\LVWKHFHQWUDOFRUHDVZHOODVWKHFDUGLQDODUWLFOHRIIDLWKRIRXUFLYLOL]DWLRQ7KHLQYLRODEOH
FKDUDFWHURIDPDQDVDQLQGLYLGXDOPXVWEHSURWHFWHGWRWKHODUJHVWSRVVLEOHH[WHQWLQKLVWKRXJKWV
DQGLQKLVEHOLHIVDVWKHFLWDGHORIKLVSHUVRQ
7KH%LOORI5LJKWVLVGHVLJQHGWRSUHVHUYHWKHLGHDOVRIOLEHUW\HTXDOLW\DQGVHFXULW\DJDLQVWWKH
DVVDXOWVRIRSSRUWXQLVPWKHH[SHGLHQF\RIWKHSDVVLQJKRXUWKHHURVLRQRIVPDOOHQFURDFKPHQWV
DQGWKHVFRUQDQGGHULVLRQRIWKRVHZKRKDYHQRSDWLHQFHZLWKJHQHUDOSULQFLSOHV
,QWKHSLWK\ODQJXDJHRI0U-XVWLFH5REHUW-DFNVRQWKHSXUSRVHRIWKH%LOORI5LJKWVLVWRZLWKGUDZFHUWDLQ
VXEMHFWVIURPWKHYLFLVVLWXGHVRISROLWLFDOFRQWURYHUV\WRSODFHWKHPEH\RQGWKHUHDFKRIPDMRULWLHVDQG
RIILFLDOVDQGWRHVWDEOLVKWKHPDVOHJDOSULQFLSOHVWREHLPSOLHGE\WKHFRXUWV2QH
VULJKWVWROLIHOLEHUW\DQG
SURSHUW\WRIUHHVSHHFKRUIUHHSUHVVIUHHGRPRIZRUVKLSDQGDVVHPEO\DQGRWKHUIXQGDPHQWDOULJKWVPD\
QRWEHVXEPLWWHGWRDYRWHWKH\GHSHQGRQWKHRXWFRPHRIQRHOHFWLRQV/DVNLSURFODLPHGWKDWWKH
KDSSLQHVVRIWKHLQGLYLGXDOQRWWKHZHOOEHLQJRIWKH6WDWHZDVWKHFULWHULRQE\ZKLFKLWVEHKDYLRXUZDVWREH
MXGJHG+LVLQWHUHVWVQRWLWVSRZHUVHWWKHOLPLWVWRWKHDXWKRULW\LWZDVHQWLWOHGWRH[HUFLVH
[[[[[[[[[
0U-XVWLFH'RXJODVDUWLFXODWHGWKLVSRLQWHGUHPLQGHU
7KHFKDOOHQJHWRRXUOLEHUWLHVFRPHVIUHTXHQWO\QRWIURPWKRVHZKRFRQVFLRXVO\VHHNWRGHVWUR\RXU
V\VWHPRIJRYHUQPHQWEXWIURPPHQRIJRRGZLOOJRRGPHQZKRDOORZWKHLUSURSHUFRQFHUQVWREOLQG
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
WKHPWRWKHIDFWWKDWZKDWWKH\SURSRVHWRDFFRPSOLVKLQYROYHVDQLPSDLUPHQWRIOLEHUW\
7KHPRWLYHVRIWKHVHPHQDUHRIWHQFRPPHQGDEOH:KDWZHPXVWUHPHPEHUKRZHYHULVWKDW
SUHVHUYDWLRQRIOLEHUWLHVGRHVQRWGHSHQGRQPRWLYH$VXSSUHVVLRQRIOLEHUW\KDVWKHVDPHHIIHFW
ZKHWKHUWKHVXSSUHVVRUEHDUHIRUPHURUDQRXWODZ7KHRQO\SURWHFWLRQDJDLQVWPLVJXLGHG]HDOLV
FRQVWDQWDOHUWQHVVRIWKHLQIUDFWLRQVRIWKHJXDUDQWHHVRIOLEHUW\FRQWDLQHGLQRXU&RQVWLWXWLRQ(DFK
VXUUHQGHURIOLEHUW\WRWKHGHPDQGVRIWKHPRPHQWPDNHVHDVLHUDQRWKHUODUJHUVXUUHQGHU7KH
EDWWOHRYHUWKH%LOORI5LJKWVLVDQHYHULVDQHYHUHQGLQJRQH
7KHOLEHUWLHVRIDQ\SHUVRQDUHWKHOLEHUWLHVRIDOORIXV
,QVKRUWWKHOLEHUWLHVRIQRQHDUHVDIHXQOHVVWKHOLEHUWLHVRIDOODUHSURWHFWHG
%XWHYHQLIZHVKRXOGVHQVHQRGDQJHUWRRXURZQOLEHUWLHVHYHQLIZHIHHOVHFXUHEHFDXVHZH
EHORQJWRDJURXSWKDWLVLPSRUWDQWDQGUHVSHFWHGZHPXVWUHFRJQL]HWKDWRXU%LOORI5LJKWVLVDFRGH
RIIDLUSOD\IRUWKHOHVVIRUWXQDWHWKDWZHLQDOOKRQRUDQGJRRGFRQVFLHQFHPXVWREVHUYH
,IDVVWUHVVHGDERYHXQLIRUPO\E\WKH3UHVLGHQWDQGWKHFLWHGOHJDODXWKRULWLHVVXSUDWKHIUHHGRPVJXDUDQWHHGE\
WKH%LOORI5LJKWVDUHUHPRYHGIURPWKHYLFLVVLWXGHVRISROLWLFDOFRQWURYHUV\DQGEH\RQGWKHUHDFKRIPDMRULWLHV
DQGRIILFLDOVDQGDUHHVWDEOLVKHGDVOHJDOSULQFLSOHVWREHDSSOLHGE\WKHFRXUWVDQGPD\QRWEHVXEPLWWHGWRD
YRWHWKH\GHSHQGRQWKHRXWFRPHRIQRHOHFWLRQVWKHQLWLVUHVSHFWIXOO\VXEPLWWHGWKDWWKHSULQFLSOHVRI
IXQGDPHQWDOSXEOLFSROLF\HQVKULQHGLQWKH%LOORI5LJKWVWKDWJXDUDQWHHWRHYHU\LQGLYLGXDOGXHSURFHVVDQGIDLU
SOD\UHJDUGOHVVRIZKRKHLVDQGRIZKRHYHUPD\EHLQSRZHUFDOOIRUWKHJUDQWLQJRIWKHSHWLWLRQDQGDWWKHOHDVW
IRUWKHUHLQYHVWLJDWLRQRIWKHFKDUJHVDJDLQVWSHWLWLRQHUZLWKXWPRVWIDLUQHVVLPSDUWLDOLW\DQGREMHFWLYLW\DV
GLUHFWHGLQ$GPLQLVWUDWLYH2UGHU1RLWVHOI
0XxR]3DOPD-FRQFXU l Z S K w x s W
%$55('2-FRQFXUULQJ
,FRQFXULQWKHPDLQRSLQLRQVRYHU\DEO\SHQQHGIRUWKH&RXUWE\RXUGLVWLQJXLVKHGFROOHDJXH0U-XVWLFH$QWRQLR
,DPZULWLQJWKLVVHSDUDWHRSLQLRQQRWZLWKLQWHQWWRXQQHFHVVDULO\OHQGIRUFHWRWKHFRJHQWDQGFRPSHOOLQJ
FRQVLGHUDWLRQVH[SRXQGHGWKHUHLQEXWRQO\WRDUWLFXODWHDIHZWKRXJKWV,HQWHUWDLQUHODWLYHWRFHUWDLQDVSHFWVRIWKLV
FDVHZKLFKKDYHDGGLWLRQDOO\LPSHOOHGPHWRRYHUUXOHWKHFRQWHQWLRQVRISHWLWLRQHURWKHUWKDQKLVLQYRFDWLRQRIKLV
ULJKWWRZDLYHKLVSUHVHQFHDWWKHSURFHHGLQJVEHLQJKHOGDJDLQVWKLP
$WWKHRXWVHW,ZRXOGOLNHWRXQGHUVFRUHWKHIDFWWKDWWKLVLVWKHILUVWGHFLVLRQRIWKLV&RXUWUHJDUGLQJPDMRUPDUWLDO
ODZLVVXHVZKHUHLQWKHPDLQRSLQLRQFDUULHVWKHXQTXDOLILHGFRQFXUUHQFHRIWKHUHTXLUHGQXPEHURIMXVWLFHVIRU
GRFWULQDOSXUSRVHV6LQFH,KDYHKHUHWRIRUHUHJUHWWHG2XUIDLOXUHWRDJUHHRQDFRPPRQRSLQLRQWKDWZRXOGQRWEH
VXEMHFWWRYDU\LQJFRQVWUXFWLRQVLQFOXGLQJGLVWRUWHGDQGVHOIPRWLYDWHGRQHVZKLFKFRXOGEHSHGGOHGDURXQGIRU
SURSDJDQGDSXUSRVHVE\WKRVHZKRIRUUHDVRQVRIWKHLURZQFDQQRWVHHDQ\WLPHULJKWLQWKHSUHVHQWRUGHULWLVWR
PHDFDXVHRIJHQXLQHVDWLVIDFWLRQWKDWDWORQJODVWWKH&RXUWKDVEHHQDEOHWRUHQGHUWKHLQVWDQWRSLQLRQDQG
MXGJPHQWWRXFKLQJRQLPSRUWDQWDQGEDVLFFRQVWLWXWLRQDODQGOHJDOIHDWXUHVRIWKHSUHYDLOLQJPDUWLDOODZ
DGPLQLVWUDWLRQLQDPDQQHUWKDWOHDYHVQRURRPIRUGRXEWDVWRWKHPHDQLQJDQGVFRSHRI2XUSURQRXQFHPHQWV
7REHPRUHVSHFLILFWKHPDLQRSLQLRQLQWKLVFDVHDQGWKHUXOLQJVWKHUHLQFRQWDLQHGRZQWKHIXOOVXSSRUWRIDWOHDVW
HLJKWPHPEHUVRIWKH&RXUWZLWKRXWFRXQWLQJZKDW,FRQVLGHUWREHWKHFORVHHQRXJKWRFRQFXUUHQFHSRVWXUHRI
0U-XVWLFH)HUQDQGRZKLFKEHWUD\VQROLWWOHHIIRUWWRUHFRQFLOHORQJFKHULVKHGWUDGLWLRQDOYLHZVZLWKWKHLQQRYDWLYH
DQGSURJUHVVLYHMXULGLFDOFRQFHSWVHPHUJLQJIURPWKHLPSHUDWLYHVRIWKHOHJDOFKDUDFWHURIWKHSUHVHQWO\
HVWDEOLVKHGJRYHUQPHQW,QWKHOLJKWRIWKHFRQVWLWXWLRQDOUHTXLUHPHQWRIWHQYRWHVIRUDGHFODUDWLRQRI
LQYDOLGLW\RIDQ\RUGHURIWKH3UHVLGHQWHLJKWQHJDWLYHYRWHVLVPRUHWKDQLPSUHVVLYH$QGFHUWDLQO\DOOWKHUXOLQJV
LQWKHPDLQRSLQLRQKDYLQJDVWKH\GRKDYHWKHVXSSRUWRIWKRVHHLJKWYRWHVFRQVWLWXWHDXWKRULWDWLYHGRFWULQHV
DJDLQVWZKLFKWKHFRQWUDU\YLHZVRIDQ\PHPEHURIWKHEDUVKRXOGKDYHQRPRUHWKDQDFDGHPLFYDOXH$WWKHVH
WLPHVZKHQLWLVEHVWWKDWWKHOHJDOIRXQGDWLRQVRIWKHH[LVWLQJJRYHUQPHQWVKRXOGEHVHFXUHO\VROLGLILHGWREHWWHU
DQGIDVWHUDFKLHYHWKHHQGVIRUZKLFKPDUWLDOODZKDVEHHQSURFODLPHGWKHSURQRXQFHPHQWVRIWKH&RXUWLQWKLV
FDVHVKRXOGSXWDQHQGWRDQHIIRUWWRGLVFUHGLWWKHDFWLRQVRIWKLV*RYHUQPHQWDVEHLQJIRXQGHGRQO\RQPLJKW
UDWKHUWKDQULJKW,QGHHGP\IDLWKLVWKDWWKHUXOHRIODZREWDLQVWRGD\DVLWKDVDOZD\VREWDLQHGEHIRUHDULGGXH
FRQVLGHUDWLRQDQGFRUUHVSRQGLQJDFFRPPRGDWLRQDFFRUGHGWRWKHUHTXLUHPHQWVRIWKHHPHUJHQF\FRQIURQWLQJWKH
QDWLRQGRQRWGHWUDFWLQDQ\ZD\IURPWKHHIIHFWLYHVXSUHPDF\RIWKHODZ
3HWLWLRQHUPRWLRQWRZLWKGUDZGHQLHG
,WLVDVHWWOHGUXOHFRQVLVWHQWZLWKWKHILWWLQJGLJQLW\RIMXGLFLDOSURFHHGLQJVWKDWDIWHUDFDVHKDVEHHQVXEPLWWHGIRU
GHFLVLRQZLWKGUDZDORIWKHVDPHIURPWKHMXULVGLFWLRQRIWKHFRXUWLVDPDWWHUDGGUHVVHGWRLWVVRXQGGLVFUHWLRQ
DQGLVIDUIURPEHLQJDPDWWHURIULJKWRQWKHSDUWRIDQ\RIWKHSDUWLHV)RUREYLRXVUHDVRQVDSDUW\VKRXOGQRWEH
DOORZHGWRSURYRNHLVVXHVRIIDUUHDFKLQJLQWHUHVWDQGLPSRUWDQFHDQGKXUODFFXVDWLRQVDJDLQVWWKHDFWXDWLRQVRI
WKHDGYHUVHSDUW\WKHUHE\FUHDWLQJGRXEWVLQWKHSXEOLFPLQGDVWRWKHYDOLGLW\RIVDLGDFWXDWLRQVDQGWKHUHDIWHU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
XSRQEHLQJFRQIURQWHGZLWKWKHGHIHQVHVRIKLVRSSRQHQWDQGVHQVLQJSHUKDSVSUREDEOHGHIHDWWRMXVWWDNHD
UHWUHDWZLWKRXWH[SUHVVO\DGPLWWLQJWKHLQILUPLW\RIKLVSRVLWLRQWKHUHE\PDNLQJVXUHWKDWKHFDQZLWKUHODWLYH
LPSXQLW\FRQWLQXHZLWKKLVFULWLFDODWWLWXGHLQWKHPDQQHUVXLWDEOHWRKLVFRQYHQLHQFHDQGSXUSRVHV2EVHUYDQFHRI
WKHODXGDEOHSROLF\RIWHUPLQDWLQJOLWLJDWLRQVDWWKHHDUOLHVWRSSRUWXQLW\PD\QRWEHLQYRNHGZKHQWKHHYLGHQWUHVXOW
LVGHWULPHQWWRWKHPRUHSDUDPRXQWREMHFWLYHRIKDYLQJDGHILQLWHUXOLQJE\WKH6XSUHPH&RXUWDVWRZKDWWKHODZ
LVLQUHJDUGWRWKHPDWWHUVRIYLWDOSXEOLFLQWHUHVWDFWXDOO\DQGSURSHUO\EURXJKWWRLWIRUDGMXGLFDWLRQ
%XWWKHLPSHUDWLYHQHHGWRVHWWOHWKHLPSRUWDQWLVVXHVUDLVHGLQWKLVFDVHLVQRWWKHRQO\UHDVRQ,KDYHIRUYRWLQJWR
GHQ\SHWLWLRQHU
VPRWLRQ:KHQSHWLWLRQHUZDVUHTXLUHGE\WKH&RXUWWRDPSOLI\KLVLQLWLDOXQUHDVRQHGUHTXHVWWREH
DOORZHGWRZLWKGUDZDOOKLVSHWLWLRQVPRWLRQVDQGRWKHULQFLGHQWVKHUHLQKLVFRXQVHOVXEPLWWHGDOHWWHUSXUSRUWHGO\
FRPLQJIURPSHWLWLRQHUZKHUHLQKHYHKHPHQWO\FDVWDVSHUWLRQVDJDLQVWWKLV&RXUWDOOHJLQJWKDWKHGRHVQRWZDQW
DQ\WKLQJIURPWKH6XSUHPH&RXUWDQGWKDWWKHZKROHWKLQJKDGEHHQGHVLJQHGFRPSRVHGDQGRUFKHVWUDWHGLQ
0DODFDxDQJDQGWKDWKLVOHJDOEDWWOHVLQWKH6XSUHPH&RXUWDUHQRZRYHU0U0DUFRVLVWKHVLQJOHJHQLXV
FRPSRVLQJDQGGLUHFWLQJDOOWKHSURFHHGLQJVZKHWKHULQWKHPLOLWDU\WULEXQDORULQWKHFLYLOFRXUWVDQGHYHQJRLQJ
DVIDUDVUHIHUULQJWRWKH6XSUHPH&RXUWDVDQREVWDFOH
,GRQRWEHOLHYH
LWLVXQGHUDQ\FLUFXPVWDQFHSURSHUIRUD6XSUHPH&RXUWWROHDYHVXFKDFFXVDWLRQV
XQFKDOOHQJHG0RVWOLNHO\WKH\FRXOGEHPHUHXQFRQWUROODEOHRXWEXUVWRIDGHVSHUDWHVRXOZKLFKDUHZLWKRXW
MXGLFLDOVLJQLILFDQFHEXWVLQFHLWLVDVOLNHO\WKDWSHWLWLRQHU
VOHWWHUZRXOGEHXVHGDVSURSDJDQGDPDWHULDOQRWRQO\
KHUHEXWDEURDGWRGLVFUHGLWWKH3KLOLSSLQH*RYHUQPHQWLQWKHH\HVRIWKHZRUOG,FRQVLGHULWLQHYLWDEOHIRUWKH
&RXUWWRSURFHHGWRGLVSRVHRIWKHPHULWVRISHWLWLRQHU
VFDVHDQGWKXVOHWDOODQGVXQGU\MXGJHIRUWKHPVHOYHVRQ
WKHEDVLVRIWKH&RXUW
VH[SUHVVHGFRQVLGHUDWLRQVUDWKHUWKDQRQWKDWRISHWLWLRQHU
VVHOIVHUYLQJRSLQLRQZKHWKHU
RUQRWRXUMXGLFLDU\LVZKDWSHWLWLRQHUFODLPVLWWREH,WLVP\FRQVLGHUHGYLHZWKDWLIDSDUW\ZKRFRPHVWRFRXUW
KDVLQGHHGDQ\ULJKWWRZLWKGUDZKLVFDVHWKHUHIURPVXFKZLWKGUDZDOVKRXOGQRWUHFHLYHWKHVDQFWLRQRIWKHFRXUW
ZKHQWKHSDUW\WHOOVWKHFRXUWWKDWKLVUHDVRQIRUZLWKGUDZLQJLVEHFDXVHKHKDVQRFRQILGHQFHLQLWVLPSDUWLDOLW\
DQGFDSDFLW\WRUHQGHUMXVWLFH,QVXFKDVLWXDWLRQWKHRQO\UHFRXUVHRIWKHFRXUWLVWRSURYHE\DFWXDOO\GHFLGLQJ
WKHFDVHKRZMXVWDQGLPSDUWLDOLWLV
,ZRXOGOLNHWRVWDWHKHUHHPSKDWLFDOO\WKDWSHWLWLRQHU
VDSSUHKHQVLRQVDERXWWKHGDQJHUVWRWKHLQGHSHQGHQFHRI
WKHMXGLFLDU\RIWKH3KLOLSSLQHVDWSUHVHQWSDUWLFXODUO\WKH6XSUHPH&RXUWLVQRWKLQJPRUHWKDQDQDSULRULRSLQLRQ
DQGLVQRWDQGFDQQRWEHVXSSRUWHGE\IDFWV$IWHUDOOWKH&RXUWGRHVQRWKDYHWRQHFHVVDULO\DJUHHZLWKHYHU\RQH
ZKRIHHOVWKDWFHUWDLQDFWVRIWKH*RYHUQPHQWDUHLOOHJDORUXQFRQVWLWXWLRQDO6XUHO\DSURSHQVLW\WRRYHUUXOHWKH
RWKHUGHSDUWPHQWVRIWKH*RYHUQPHQWLVQRWWKHWUXHPDUNRIWKHLQGHSHQGHQFHRIWKHMXGLFLDOEUDQFK,IVRIDUWKH
6XSUHPH&RXUWKDVQRW\HWGHFODUHGDQ\LPSXJQHGDFWVRIWKH3UHVLGHQWRUWKHPDUWLDOODZJRYHUQPHQW
XQFRQVWLWXWLRQDOLWLVQRWEHFDXVHWKH&RXUWLVVXEVHUYLHQWWRWKH3UHVLGHQWLQDQ\ZD\EXWVLPSO\EHFDXVHLQWKH
KRQHVWFRQYLFWLRQRILWVPHPEHUVWKHSURSHUFDVHIRUVXFKDGHFODUDWLRQKDVQRWFRPH7KDWWKH&RXUWFDQDQG
ZLOOVWULNHGRZQDFWVRIWKH3UHVLGHQWLQWKHDSSURSULDWHLQVWDQFHVWKHUHVKRXOGEHQRGRXEWZKDWVRHYHU7KH
SHRSOHFDQUHVWDVVXUHGWKDWZKHQWKHSURSHURFFDVLRQVDULVHWKHMXVWLFHVLQGLYLGXDOO\DQGFROOHFWLYHO\ZLOOQRWEH
IRXQGZDQWLQJLQZLVGRPDQGFRXUDJHWRDFWDFFRUGLQJO\UHJDUGOHVVRIZKDWPLJKWEHWKHYLHZVDQGZLVKHVRIWKH
([HFXWLYHDQGRUDQ\RWKHUGHSDUWPHQWRIWKHJRYHUQPHQW
$WWKLVSRLQWLWPD\QRWEHDPLVVWRVD\DIHZZRUGVUHVSHFWLQJSHWLWLRQHU
VGHFLVLRQWRUHVRUWWRZKDWLVEHLQJ
UHIHUUHGWRDVDKXQJHUVWULNH
$FFRUGLQJWRKLVOHWWHUDIRUHPHQWLRQHGWKHLQLWLDOUHDVRQIRUVXFKDVWHSZDVWRTXRWHKLVRZQZRUGVWRSURWHVW
DJDLQVWDSURFHGXUHLQWHQGHGWRKXPLOLDWHDQGGHKXPDQL]HPHFRQVLGHULQJWKDWDOOWKH\ZDQWHGZDVIRUPHWREH
LGHQWLILHGDVDFRPPRQFULPLQDODQGQRWDVDSROLWLFDOULYDO,DOVRVDLGWKDWP\KXQJHUVWULNHZDVQRWRQO\IRU
P\VHOIEXWRQEHKDOIRIPDQ\RWKHUYLFWLPVRIWRGD\
VRSSUHVVLRQDQGLQMXVWLFHV/DWHUKRZHYHUWKHFDXVHV
WKHUHRIZHUHEURDGHQHGE\KLPWKXV Wr x
vK T Z k
'HVSLWHP\KXQJHUVWULNHRUSUREDEO\EHFDXVHRILW,VHHZLWKXQPLVWDNDEOHFODULW\WKDWP\OHJDO
EDWWOHVLQWKH6XSUHPH&RXUWDUHQRZRYHU0U0DUFRVLVWKHVLQJOHJHQLXVFRPSRVLQJDQGGLUHFWLQJ
DOOWKHSURFHHGLQJVZKHWKHULQWKHPLOLWDU\WULEXQDORULQWKHFLYLOFRXUWV7KLVLVWKHHYLORIRQHPDQ
UXOHDWLWVYHU\ZRUVW+HKDVGHVWUR\HGWKHLQGHSHQGHQFHRIWKHFLYLOFRXUWVDEROLVKHGWKH
OHJLVODWXUHFRQWUROOHGWKHPDVVPHGLDFXUWDLOHGRXUFKHULVKHGOLEHUWLHVZLWKWKHEDFNLQJRIWKH
PLOLWDU\ZKLFKLURQLFDOO\H[LVWV
IRUWKHJRRGRIWKHSHRSOH
:LWKRXWWKH6XSUHPH&RXUWDVDQREVWDFOH,KDYHGHFLGHGWRJRRQP\KXQJHUVWULNHDQGSODFHP\
IDWHDQGP\OLIHVTXDUHO\LQWKHKDQGVRIP\DFFXVHUSURVHFXWRUDQGMXGJH0U0DUFRV7KXVWKH
SODLQQDNHGWUXWKZLOOEHPDGHFOHDUWRRXUSHRSOHDQGWRWKHUHVWRIWKHZRUOG
$V,VDLGP\KXQJHUVWULNHLVQRWIRUP\VHOIDORQHEXWIRUWKHPDQ\WKRXVDQGVRI)LOLSLQRVZKRDUH
KHOSOHVVYLFWLPVRIWKHRSSUHVVLRQDQGLQMXVWLFHVRIWKHVRFDOOHG1HZ6RFLHW\7KHPHDQLQJDQG
WKUXVWRIP\VWUXJJOHDQGVDFULILFHWUDQVFHQGWKHOLPLWHGTXHVWLRQRIDEVHQFHRUSUHVHQFHLQWKH
SURFHHGLQJVEHIRUHWKHPLOLWDU\WULEXQDO,KDYHWKHUHIRUHVROHPQO\YRZHGWRFRQWLQXHP\KXQJHU
VWULNHDVDV\PERORIRXUSHRSOH
VILUPSURWHVWDJDLQVW Wr x
vK T Z k
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
7KHWULDORIFLYLOLDQVEHIRUHPLOLWDU\WULEXQDOVSDUWLFXODUO\IRURIIHQVHVDOOHJHGO\
FRPPLWWHGE\WKHPEHIRUHPDUWLDOODZ
WKHODFNRIMXGLFLDOLQGHSHQGHQFH7ULDOVE\FLYLOFRXUWVZRXOGVWLOOEHDWUDYHVW\RI
MXVWLFHHVSHFLDOO\LQFDVHVZKHUHWKRVHLQSRZHUWKHLUUHODWLYHVRUDVVRFLDWHVDUH
LQWHUHVWHG²IRUDVORQJDVRXUMXGJHVUHPDLQFDVXDOV7KH\VKRXOGEHJLYHQ
SHUPDQHQWWHQXUHIRUWKHLURZQJRRGDQGIRUWKHEHQHILWRIRXUSHRSOHZKRKDYHDYLWDO
VWDNHLQDVRXQGDGPLQLVWUDWLRQRIMXVWLFH
WKHDEVHQFHRIDJHQXLQHIUHHSUHVV6LQFHPDUWLDOODZZDVSURFODLPHG,KDYHEHHQ
XQIDLUO\FRQGHPQHGDQGYLOLILHGE\WKHFRQWUROOHGQHZVSDSHUVDQGWYUDGLRVWDWLRQV,
NQRZWKHUHDUHPDQ\SHRSOHZKRKDYHEHHQVLPLODUO\SLOORULHG%XWDJHQXLQHIUHHSUHVV
LVHYHQPRUHLPSRUWDQWIRUWKRVHZKRDUHLQSRZHU,WPD\IUHHWKHPIURPWKHLU
DUURJDQFHWKHLUSUHMXGLFHVDQGWKHLUSUHWHQVLRQVDQGKHOSWKHPVHHWKHLQMXVWLFHVWKH\
KDYHFRPPLWWHGDJDLQVWWKHLURZQSHRSOH
WKHIXUWKHUFRQWLQXDWLRQRIPDUWLDOODZDQGLWVHYLOVDQGUHSUHVVLRQV$IWHUDOO0U
0DUFRVKDVDOUHDG\DQQRXQFHGWRWKHZRUOGWKDWKHKDGDFWXDOO\UHPRYHGPDUWLDOODZ
VLQFH$SULO3HWLWLRQHU$TXLQR
VOHWWHUSS
,QVRIDUDVSHWLWLRQHU
VKXQJHUVWULNHPD\EHXQGHUVWRRGDVDQDWWHPSWWRVWDPSHGHWKH&RXUWWRUHQGHUD
YHUGLFWIDYRUDEOHWRKLVYLHZV,PXVWVWDWHFDWHJRULFDOO\WKDWLWLVVXEYHUVLYHDQGFRQWXPDFLRXVVSHFLDOO\EHFDXVH
LWLVEHLQJDGPLWWHGO\GRQHZLWKXQPLVWDNDEOHFODULW\RIPLQGDQGSXUSRVH)UDQNO\,DPDWDORVVDVWRZKDWNLQG
RISURFHGXUHZRXOGVXLWKLP,QWKHVDPHEUHDGWKWKDWKHSURIHVVHVWRDGYRFDWHWKDWHYHU\PDQLVHQWLWOHGWR
HTXDOSURWHFWLRQRIWKHODZVKHFODLPVWKDWKHVKRXOGEHWUHDWHGQRWDVDQRUGLQDU\DFFXVHGEXWDVDSROLWLFDO
ULYDOHYLGHQWO\PHDQLQJRIWKH3UHVLGHQW+RZLQGHHGLVDSROLWLFDOULYDORIWKH$GPLQLVWUDWRURIPDUWLDOODZ
VXSSRVHGWREHSURVHFXWHGIRUDQRIIHQVHFRPPLWWHGDJDLQVWWKHODZVRIWKHODQG"
%HWKDWDVLWPD\DQ\RQHFDQHDVLO\LPDJLQHWKHXQPDQDJHDEOHVLWXDWLRQDQGMXGLFLDOFKDRVWKDWZRXOGUHVXOW
VKRXOG:HFUHDWHDSUHFHGHQWZKHUHLQWKH&RXUWVKRXOG\LHOGWRWKHGHPDQGVRIDSHUVRQXQGHUIRUPDOFKDUJHRI
FRPPLWWLQJDQRIIHQVHDVRWKHUZLVHKHZRXOGUHVRUWWRDKXQJHUVWULNH1RQHWKHOHVV:HZHUHVRPHKRZ
GLVSRVHGWROHDQEDFNZDUGVDQGUXOHLQWHUORFXWRULO\DVHDUO\DV:HFRXOGRQWKHLVVXHDVWRZKHWKHURUQRWWKH
UHVSRQGHQW0LOLWDU\&RPPLVVLRQZDVULJKWLQFRPSHOOLQJSHWLWLRQHUWRDWWHQGWKHSHUSHWXDWLRQSURFHHGLQJVDQG
WKHUHE\SODFHKLVLQLWLDOFDXVHIRUWKHKXQJHUVWULNHLQLWVWUXHSHUVSHFWLYH%XW2XUHIIRUWVWRWKLVHQGZHUHPHWE\
SHWLWLRQHU
V&KXUFKLOOOLNHUHDFWLRQWKDWZKDW:HFRXOGSRVVLEO\JLYHZDVWRRODWHDQGWRROLWWOHPDQLIHVWHGE\KLV
RQFHPRUHGLVDXWKRUL]LQJKLVODZ\HUVIURPKHQFHIRUWKVSHDNLQJIRUKLPDQGILQDOO\VHHNLQJWKHZLWKGUDZDORIWKLV
FDVHIURPRXUKDQGV,VWKH&RXUWVXSSRVHGWRH[WHQGWRDSROLWLFDOULYDORIWKH3UHVLGHQWPRUHWKDQZKDWWKH
H[LVWLQJODZVSURYLGHIRURWKHUV"
$VD)LOLSLQRP\VHOI,DPUHDG\WRFRQFHGHWKDWSHWLWLRQHULVEHLQJDFWXDWHGE\ZKDWKHKRQHVWO\EHOLHYHVWREHKLV
GXW\WRRXUFRXQWU\DQGSHRSOH+LVDELGLQJOR\DOW\WRKLVFDXVHDQGKLVILUPFRQYLFWLRQWRDWWDLQKLVREMHFWLYHVDUH
WRPHDGPLUDEOH%XW,UHMHFWDQ\VXJJHVWLRQWKDWIRUWKH&RXUWWRXSKROGWKHOHJDOLW\DQGFRQVWLWXWLRQDOLW\RIWKH
H[LVWLQJJRYHUQPHQWLVLQLPLFDOWRWKHQDWLRQDOLQWHUHVWVDQGLGHDOV,FDQVHHWKDWWKHFRQFHSWRIPDUWLDOODZ
SUHVHQWO\EHLQJHYROYHGKHUHDVZHOODVVRPHIHDWXUHVRILWVLPSOHPHQWDWLRQGRQRWFRQIRUPZLWKFHUWDLQYLHZVRI
WKH$PHULFDQ6XSUHPH&RXUWDQGVRPHDOLHQZULWHUVRQWKHVXEMHFWEXWLVLWLPSHUDWLYHWKDWWKH6XSUHPH&RXUWRI
WKH3KLOLSSLQHVVKRXOGDGKHUHWRWKHGRFWULQHVODLGGRZQE\DOLHQDXWKRULWLHVLQRUGHUWREHULJKW"
,QFLGHQWDOO\LWLVEHFRPLQJLQFUHDVLQJO\HYLGHQWWKDWVRPHUHOLJLRXVTXDUWHUVDVVXFKZRXOGZDQWWKHLULQIOXHQFHIHOW
LQWKHUHVROXWLRQRIWKHOHJDOLVVXHVEHIRUH8V2QHGRHVQRWKDYHWRGLJGHHSLQWRWKHSDJHVRIKLVWRU\WROHDUQ
WKDWQDWLRQVDQGSHRSOHVKDYHDOVRVXIIHUHGZKHUHDQGZKHQWKHUHZDVQRVHSDUDWLRQRIWKHFKXUFKDQGVWDWHDV
ZKHQWKH\ZHUHXQGHUGHVSRWVDQGDXWRFUDWV,QDQ\HYHQWZKLOHRQHFDQFRPPLVHUDWHDQGV\PSDWKL]HZLWK
SHWLWLRQHUIRUWKHSHUVRQDOVXIIHULQJVKHKDVHOHFWHGWRXQGHUJR,FDQQRWFRQYLQFHP\VHOIWKDWWKH\DUHLQDQ\ZD\
FRPSDUDEOHZLWKWKHDJRQLHVRI&KULVWDW&DOYDU\DVVHHPLQJO\,DPLQIRUPHGKDVEHHQVRPHKRZRUVHHPLQJO\
VXJJHVWHGDWDUHOLJLRXVJDWKHULQJVRPHWLPHDJRRIWKRVHZKRVKDUHFRQYLFWLRQVZLWKSHWLWLRQHU:LWKDO,DP
DIUDLGWKDWHYHQWKHPHUHDWWHPSWWRGUDZVXFKDFRPSDULVRQFRXOGEHDVLQRIVDFULOHJHDQGRIKDYLQJVWUDQJH
JRGVEHIRUHRXURQO\+RO\5HGHHPHU
0LOLWDU\WULEXQDOVDQGWULDOVIRUSHUVRQVZKRKDYHFRPPLWWHGRIIHQVHVDJDLQVWWKHREMHFWLYHVRIPDUWLDOODZLVD
QDWXUDODQGORJLFDOFRQFRPLWDQWRIPDUWLDOUXOH
7KHOHJDOLVWLFDQGVFKRODUO\GLVFXVVLRQLQWKHPDLQRSLQLRQRIWKHLVVXHRIMXULVGLFWLRQRIKHUHLQUHVSRQGHQW0LOLWDU\
&RPPLVVLRQ1RQHHGVQRDPSOLILFDWLRQ,RQO\ZLVKWRSXQFWXDOL]HDEURDGHUIRXQGDWLRQIRUP\FRQFXUUHQFH,
KDYHDOZD\VPDLQWDLQHGLWLVHOHPHQWDU\KLVWRULFDOO\DQGOHJDOO\WKDWLQDQ\UHJLPHRIPDUWLDOODZRIIHQGHUV
DJDLQVWLWVREMHFWLYHVDUHDQGRXJKWWREHWULHGE\PLOLWDU\WULEXQDOVLQDFFRUGDQFHZLWKWKHSURFHGXUHSUHVFULEHG
IRUWKHP7RIHHODSSUHKHQVLYHWKDQWKDWXQOHVVWKH&RXUWXSKROGVSHWLWLRQHU
VFRQWHQWLRQWKDWDVDFLYLOLDQKH
FDQQRWEHWULHGE\UHVSRQGHQWFRPPLVVLRQIRUWKHFULPHVDOOHJHGO\FRPPLWWHGSULRUWRWKHSURFODPDWLRQRIPDUWLDO
ODZWKRXVDQGVRI)LOLSLQRVUXQWKHULVNRIEHLQJVLPLODUO\KDLOHGEHIRUHPLOLWDU\FRXUWVDQGGHSULYHGRIWKHLU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FRQVWLWXWLRQDOULJKWVWRGXHSURFHVVLVWRLJQRUHWKDWWKURXJKRXWWKHOLIHRIDOOQDWLRQVZKHQUHEHOOLRQVDQG
UHYROXWLRQVZHUHPRXQWHGQRGLVWLQFWLRQKDVHYHUEHHQGUDZQDPRQJWKRVHLJQLWLQJWKHXSULVLQJZKLFKQDWXUDOO\
ZDVGRQHEHIRUHDQ\GHFODUDWLRQRIPDUWLDOODZDVWRZKHWKHUWKH\DUHFLYLOLDQVRUPLOLWDU\PHQIRUSXUSRVHVRI
WU\LQJWKHPEHIRUHWKHPLOLWDU\FRXUWVRIWKHOHJLWLPDWHRUYLFWRULRXVJRYHUQPHQWDWOHDVWZKHQHYHUSURVHFXWLRQ
KDVWREHXQGHUWDNHQEHIRUHWKHKRVWLOLWLHVZHUHRYHU$QGLQWKLVFRQQHFWLRQLWPD\EHVDLGRIPRUHUHFHQW
PLOLWDU\WULEXQDOVWU\LQJUHEHOVWKDWPRUHVDIHJXDUGVDUHEHLQJDGRSWHGLQRUGHUWKDWWKHHOHPHQWDU\UHTXLUHPHQWV
RIGXHSURFHVVPD\EHVXUHO\REVHUYHGE\WKHP0RUHRYHULWZRXOGEHDPLVFRQFHSWLRQRIWKHWUXHLPSRUWRIWKLV
GHFLVLRQWRVXSSRVHWKDWLWPD\EHWDNHQDGYDQWDJHRIE\DQ\IXWXUHJRYHUQPHQWIRUDV,KDYHH[SODLQHGLQP\
FRQFXUULQJRSLQLRQLQWKH+DEHDV&RUSXVFDVHVDQ\VHOIUHVWUDLQWWKH&RXUWKDVRSWHGWRH[HUFLVHLQLWVGHFLVLRQVVR
IDUUHQGHUHGIURPDVVHUWLQJLWVMXGLFLDODXWKRULW\WRLQWHUIHUHZLWKWKHDFWXDWLRQVRIWKH([HFXWLYHFRQVLGHULQJLWKDVQRW
IRXQGDQ\HYLGHQFHRIPDQLIHVWDEXVHRIGLVFUHWLRQRUJURVVDUELWUDULQHVVLQWKHPGRHVQRWPHDQWKH6XSUHPH&RXUWKDV
ORVWWKHSRZHUWRDFWDFFRUGLQJO\LQDSSURSULDWHFDVHVWKDWPD\FRPHODWHU$QGWKHUHEHLQJQRTXHVWLRQWKDW3URFODPDWLRQ
ZKLFKHVWDEOLVKHGPDUWLDOODZLQWKH3KLOLSSLQHVLV
YDOLGLWQHFHVVDULO\IROORZVWKDWUHVSRQGHQWPLOLWDU\WULEXQDOZKLFKKDVEHHQFUHDWHGXQGHULWDUHYHVWHGZLWKMXULVGLFWLRQWR
WU\DQGGHFLGHSHWLWLRQHU
VFDVHVLWDSSHDULQJWKDWWKHFKDUJHVDQGVSHFLILFDWLRQVDJDLQVWKLPDUHUHODWHGWRWKHFDXVHVWKDW
JDYHRFFDVLRQWRWKH3URFODPDWLRQQRPDWWHUWKDWWKHRIIHQVHVFKDUJHGWKHUHLQZHUHFRPPLWWHGORQJEHIRUHWKHLVVXDQFHRI
VDLGSURFODPDWLRQ2WKHUZLVHWKHDOWHUQDWLYHZRXOGEHWRDZDLWWKHWHUPLQDWLRQRIPDUWLDOODZZKHQDOOSDVVLRQVVKDOOKDYH
VXEVLGHGDQGWKHFRXUWVFRXOGFDOPO\DQGZLWKRXWUHJDUGWRWKHSHUVRQDOIHHOLQJVRIWKHMXGJHDVWRWKHPHULWVRIWKH
UHEHOOLRQPDNHDQLPSDUWLDOGHFLVLRQEXWWKDWZRXOGPHDQWKHFRQWLQXHGGHWHQWLRQRIWKHSHWLWLRQHULQWKHPHDQWLPH
,WLVLQVLVWHGKRZHYHUWKDWVLQFHWKHFLYLOFRXUWVDUHRSHQLWLVGHURJDWLYHRIWKHLUFRQVWLWXWLRQDODXWKRULW\WR
VDQFWLRQSHWLWLRQHU
VWULDOLQDPLOLWDU\FRPPLVVLRQ6XFKFRQWHQWLRQLJQRUHVWKHIXQGDPHQWDOPLVVLRQRIPLOLWDU\
FRXUWVGXULQJPDUWLDOODZ,QDQ\PDUWLDOODZVLWXDWLRQZKHUHLQFLYLOFRXUWVDUHFRQWLQXHGWKHLUFRH[LVWHQFHZLWK
PLOLWDU\WULEXQDOVRXJKWQRWWRFUHDWHDQ\FRQIOLFWRIMXULVGLFWLRQ7KHWULDODQGSXQLVKPHQWRIRIIHQGHUVDJDLQVWWKH
HVWDEOLVKHGRUGHUVKRXOGDVDPDWWHURIQHFHVVLW\EHOHIWLQWKHKDQGVRIWKHPLOLWDU\ZKHUHDVWKHFLYLOFRXUWVDUH
VXSSRVHGWRDLGLQWKHSUHVHUYDWLRQRIQRUPDOVRFLHW\DPRQJWKHQRQRIIHQGHUVE\FRQWLQXLQJWKHH[HUFLVHRIWKHLU
MXULVGLFWLRQRYHUDOOFLYLOPDWWHUVZKLFKKDYHQRGLUHFWUHODWLRQWRWKHLPSHUDWLYHVRIWKH3URFODPDWLRQ$QGDVYHU\
ZHOOH[SODLQHGLQWKHPDLQRSLQLRQWKHFRQVWLWXWLRQDOUHTXLUHPHQWVRIGXHSURFHVVDUHEHLQJFRPSOLHGZLWKHYHQLQ
WKHPLOLWDU\WULEXQDOV
,QOHJDOFRQWHPSODWLRQWKHUHLVKHUHQRGLPLQXWLRQPXFKOHVVDGHURJDWLRQRIWKHMXGLFLDOSRZHUYHVWHGE\WKH
&RQVWLWXWLRQXSRQWKH6XSUHPH&RXUWDQGRWKHULQIHULRUFRXUWVHVWDEOLVKHGE\ODZ$V,PDGHFOHDULQP\VHSDUDWH
RSLQLRQLQWKH+DEHDV&RUSXVFDVHVRQFHWKH6XSUHPH&RXUWUHIUDLQVGXULQJDQDWLRQDOHPHUJHQF\E\YLUWXHRIWKH
GLVFUHWLRQLPSOLFLWO\JUDQWHGWRLWE\WKHSHRSOHLQWKH&RQVWLWXWLRQIURPLQYDOLGDWLQJWKHSURFODPDWLRQRIPDUWLDOODZEHFDXVH
LWLVFRQYLQFHGWKDWWKHUHKDVEHHQQRSDWHQWDUELWUDULQHVVLQLWVLVVXDQFHZKLFK:HKDYHDFWXDOO\GRQHDOUHDG\LQVDLG
FDVHVWKHUHFDQEHQROHJDOREMHFWLRQWRWKHH[LVWHQFHRIPLOLWDU\FRXUWVIRUWKHSXUSRVHV,KDYHMXVWLQGLFDWHG$QGLWPXVW
EHVRIRULWLVHQWLUHO\UDWLRQDOWKDWPLOLWDU\WULEXQDOVDUHSHFXOLDUO\ILWLQYLHZRIWKHPRUHVXPPDU\DQGH[SHGLWLRXV
SURFHGXUHGHVLJQHGIRUWKHLUIXQFWLRQLQJWRWHPSRUDULO\DGPLQLVWHUMXVWLFHLQWKHSURPSWDQGXQHQFXPEHUVRPHPDQQHU
UHTXLUHGE\WKHH[LJHQFLHVRIWKHVLWXDWLRQ,QRWKHUZRUGVWKHWKHDWHURIZDUWHVWLVQRWWUXO\GHWHUPLQDWLYHRIWKH
FRQVWLWXWLRQDOLW\RIPLOLWDU\WULDOVGXULQJPDUWLDOODZHYHQZKHQPDUWLDOODZLVSURFODLPHGIRUWKHH[SUHVVSXUSRVHVRI
VLPXOWDQHRXVO\UHIRUPLQJVRFLHW\ZLWKWKHVXSSUHVVLRQRIWKHUHEHOOLRQE\FDXVHVWKHUHIRUHPD\QRWUHFXU:KHWKHURUQRW
WKHDXWKRULW\RIWKHFLYLOFRXUWVPD\JLYHZD\WRPLOLWDU\MXULVGLFWLRQVKRXOGUDWKHUGHSHQGRQWKHQDWXUHRIWKHRIIHQVHV
FRPPLWWHGDQGLWVUHODWLRQWRWKHHOLPLQDWLRQRIWKHXQQHFHVVDU\KLQGUDQFHVRUREVWDFOHVWRWKHFRPSOHWHUHVWRUDWLRQRIRUGHU
DQGWKHDWWDLQPHQWRIWKHVRFLDODQGSROLWLFDOREMHFWLYHVRIWKH3URFODPDWLRQ
3HWLWLRQHU
VDOOHJDWLRQRISUHMXGJPHQWDOEHLWODFNLQJLQVXIILFLHQWMXULGLFDOSHUVXDVLYHQHVVLVQHYHUWKHOHVV
ZRUWK\RIVHULRXVFRQVLGHUDWLRQE\WKHDXWKRULWLHVZKRFDQSURYLGHUHOLHI
7KDW,DPVRPHKRZLPSUHVVHGE\SHWLWLRQHU
VFRQWHQWLRQRIVXSSRVHGSUHMXGJPHQWRIKLVFDVHE\WKH3UHVLGHQW
ZKRKDVRUGHUHGWKHFUHDWLRQRIWKHPLOLWDU\FRXUWVDQGE\ZKRPWKHLUGHFLVLRQVDUHWREHUHYLHZHGIRUILQDO
DSSURYDOLVQRVHFUHW$WWKHRSHQKHDULQJRIWKLVFDVHEHIRUHWKLV&RXUWRQ$SULOODVW,KDGRFFDVLRQWRDVNWKH
6ROLFLWRU*HQHUDOZKDWSRVVLEOHLPSHGLPHQWVDUHWKHUHWRWKHWUDQVIHURISHWLWLRQHU
VFDVHWRWKHFLYLOFRXUWVZKLFK
FDQULJKWO\EHGRQHXQGHUWKHODZ%XWWKDWZDVRIFRXUVHIDUIURPLQGLFDWLQJWKDW,EHOLHYHWKDWLQGHHGWKHUH
FRXOGEHVXFKSUHMXGJPHQW,KDYHIDLWKWKDWLQWKHGLVFKDUJHRIKLVVROHPQFRQVWLWXWLRQDOO\SUHVFULEHGRDWKWRGR
MXVWLFHWRHYHU\PDQ3UHVLGHQW0DUFRVZRXOGQRWEHFDSDEOHRIZDQWRQO\GLVFDUGLQJWKHLQKHUHQWUHVSRQVLELOLWLHV
RIKLVKLJKRIILFHNQRZLQJDVKHGRHVWKDWKHZRXOGQRWEHZKHUHKHLVZHUHLWQRWIRUWKHWUXVWDQGFRQILGHQFH
UHSRVHGLQKLPE\WKHSHRSOHZKHQWKH\HOHFWHGKLPDVWKHPDQZKRE\WKHH[HUFLVHRIWKHLPPHQVHSRZHUV
JLYHQKLPE\WKH&RQVWLWXWLRQZRXOGSUHFLVHO\SURWHFWDQGGHIHQGWKHPDJDLQVWLQMXVWLFHDQGRSSUHVVLRQ
7UXWKWRWHOOWKHWKRXJKWRUVXVSLFLRQRISUHMXGJPHQWLQPLOLWDU\MXVWLFHGXULQJPDUWLDOODZLVLQHYLWDEOHIRUWKH
REYLRXVUHDVRQWKDWWKHFRQFHQWUDWLRQRISRZHUVLQVXFKDVLWXDWLRQFDUULHVZLWKLWLQKHUHQWO\WKHVSHFWDFOHRIWKH
DUP\EHLQJWKHDFFXVHUDQGMXGJHDWWKHVDPHWLPH:KHQLWLVFRQVLGHUHGKRZHYHUWKDWPLOLWDU\FRXUWVDUH
JHQHUDOO\FROOHJLDWHZLWKHDFKPHPEHUWKHUHRIEHLQJREOLJHGWRYRWHVHFUHWO\QRWRQO\RQWKHLVVXHRIWKHJXLOWRI
WKHDFFXVHGDVWRHDFKFKDUJHDQGVSHFLILFDWLRQEXWVHSDUDWHO\DOVRRQWKHSHQDOW\WREHLPSRVHGDQGWKDWLQ
LPSRUWDQWFDVHVSDUWLFXODUO\FDSLWDORQHVOLNHVRPHRIWKRVHRISHWLWLRQHUWKHLUGHFLVLRQVDUHDXWRPDWLFDOO\VXEMHFW
WRUHYLHZDQGUHFRPPHQGDWLRQE\DQXPEHURIOHYHOVRIDXWKRULW\VXFKDVWKH&KLHIRI6WDIIWKH%RDUGRI5HYLHZ
WKH6HFUHWDU\RI1DWLRQDO'HIHQVHHWFHDFKZLWKWKHLUFRUUHVSRQGLQJVWDIIMXGJHDGYRFDWHVEHIRUHUHDFKLQJWKH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
3UHVLGHQWIRUWKHILQDOYHUGLFWRQHFDQQRWHVFDSHWKHFRQYLFWLRQWKDWPRUHH[DFWLQJVDIHJXDUGVDJDLQVWDQ\
SRVVLELOLW\RISDUWLDOLW\DQGSUHMXGJPHQWPD\QRWEHIRXQGLQWKHFLYLOFRXUWV,WLVHQWLUHO\ZURQJXQMXVWDQG
XQZDUUDQWHGWRWKLQNRIDOODUP\PHQDVKDYLQJRQO\RQHPLQG$IWHUDOOWKH\DUHDOVR)LOLSLQRVOLNHSHWLWLRQHUDQG
FRXQVHODQGWKH\FDQQRWKDYHOHVVLQWHUHVWLQDQGGHYRWLRQWRWKHVDFUHGLGHDOVIRUZKLFKRXUFRPPRQFRXQWU\
DQGSHRSOHH[LVW
0RUHRYHULQWKHFDVHDWEDUWKHVWDWHPHQWVDWWULEXWHGWRWKH3UHVLGHQWDQGZKLFKSHWLWLRQHUTXRWHVDQGPDLQWDLQV
DUHUHIOHFWLYHRIWKH3UHVLGHQW
VVXSSRVHGSUHMXGJPHQWRIKLVFDVHVYLHZHGREMHFWLYHO\ZRXOGLQGLFDWHDWPRVW
RQO\DQRIIKDQGHYDOXDWLRQRIWKHHYLGHQFHWKHQRQKDQGZLWKRXWUHJDUGWRWKHRWKHUHYLGHQFHQRZLQSRVVHVVLRQ
RIWKHSURVHFXWLRQDQGZLWKRXWFRXQWLQJWKRVHZKLFKSHWLWLRQHUZLOOSUHVHQWRQKLVEHKDOIDQGGRHVQRW
QHFHVVDULO\DPRXQWWRDSURQRXQFHPHQWRIJXLOW$VVXFKWKHUHIRUHWKH\GRQRWVXIILFLHQWO\SURYHZKDWWKH
MXGJPHQWRIWKH3UHVLGHQWZRXOGEHDIWHUWKHZKROHHYLGHQFHRISHWLWLRQHU
VFDVHVVKDOOKDYHEHHQH[DPLQHGDQG
HYDOXDWHGE\KLP,QRWKHUZRUGVIURPWKHVWULFWO\OHJDOSRLQWRIYLHZRISHWLWLRQHU
VSRVHDERXWGHQLDORIGXH
SURFHVVWRKLPE\UHDVRQRISUHMXGJPHQWODFNVSHUVXDVLYHQHVV
/HJDOVWDQGDUGVDVLGHKRZHYHULWLVLPPHQVHO\UHDVVXULQJWKDWWKH3UHVLGHQWKDVDQQRXQFHGWKDWDVVRRQDVWKH
SUHVHQWSHUSHWXDWLRQSURFHHGLQJVDUHWHUPLQDWHGKHZLOOFRQVLGHUWKHDGYLVDELOLW\RIWUDQVIHUULQJWKHFDVHVLQ
TXHVWLRQWRWKHFLYLOFRXUWV6KRXOGWKDWEHGRQHDQG,KDYHQRUHDVRQIRUEHOLHYLQJWKDWLWZLOOQRWEHVRGRQHLW
ZLOOQRWRQO\EHWKDWSHWLWLRQHUZLOOEHUHOLHYHGRIDJUHDWGHJUHHRIPHQWDOWRUWXUHEXWDVLPSRUWDQWO\LIQRWPRUH
VRWKH3UHVLGHQWVKDOOKDYHJLYHQWKHQDWLRQHORTXHQWSURRIQRWVRPXFKRIKLVQRELOLW\DVRIKLVGHWHUPLQDWLRQQRW
WRDOORZWKHGHFLVLRQLQWKHFDVHVRISHWLWLRQHUWREHLQDQ\PDQQHUWDLQWHGE\WKHVOLJKWHVWVXVSLFLRQRIDQ\
SHUVRQDOIHHOLQJRURSLQLRQRQKLVSDUW$QG,KDYHQRIHDUVDWDOOWKDWRWKHUVZKRDUHDOVRVLPLODUO\FKDUJHGEHIRUH
PLOLWDU\FRPPLVVLRQVZLOOGHPDQGWKHVDPHWUHDWPHQWWKHUHE\VXEYHUWLQJWKHZKROHV\VWHPRIFULPHSURVHFXWLRQ
XQGHUPDUWLDOODZ,KDYHHDUOLHUDGYHUWHGWRIRULQWKHSDUWLFXODUFDVHRISHWLWLRQHUWKHUHLVWKHVLQJXODU
FLUFXPVWDQFHVWKDWWKH3UHVLGHQWKDVPDGHVWDWHPHQWVZKLFKKDYHVRPHUHOHYDQFHWRKLVFDVHVZKLFKLWGRHV
QRWDSSHDUKDVEHHQGRQHLQWKRVHRIWKHRWKHUV%HVLGHVXQGHU*HQHUDO2UGHU1RWKH3UHVLGHQWKDV
DOUHDG\WUDQVIHUUHGWKHPDVVRIWKHFDVHVDJDLQVWFLYLOLDQVWRWKHFLYLOFRXUWV%ULHIO\WKHQZKLOH,KROGWKDWWKHUHLV
QRWKLQJFRQVWLWXWLRQDOO\ZURQJZLWKKDYLQJSHWLWLRQHUWULHGE\DPLOLWDU\WULEXQDOLWLVP\FRQYLFWLRQWKDWLWLV
SUHIHUDEOHIURPDOORWKHUSRLQWVRIYLHZWKDWKLVFDVHVEHWUDQVIHUUHGWRWKHFLYLOFRXUWVDQGQRWEHFDXVHLQIDFWKH
ZLOOQRWJHWMXVWLFHIURPWKHIRUPHUEXWEHFDXVHKHZLOOKDYHPRUHSHDFHRIPLQGLQWKHODWWHUDQGWKHSHRSOHZLOO
EHVSDUHGHYHU\GRXEWDVWRZKHWKHURUQRWWKHVOLJKWHVWHOHPHQWRISDUWLDOLW\RUELDVKDVFUHSWLQWRRQHRIWKH
PRVWLPSRUWDQWWULDOVLQWKHFXUUHQWKLVWRU\RIRXUFRXQWU\%XWRIFRXUVHLWLVQRWZLWKLQWKHDPELWRIWKHDXWKRULW\
RIHYHQWKH&RXUWLWVHOIPXFKOHVVWKLVZULWHUWRGLUHFWWKH3UHVLGHQW
VH[HUFLVHRIWKHSRZHUVYHVWHGLQKLPE\WKH
&RQVWLWXWLRQVRDOOWKDW,FDQGRLVWRYRLFHWKHIDLWKDQGKRSHWKDWWKH3UHVLGHQWPD\QRWHQFRXQWHUDQ\IXUWKHU
REVWDFOHWRKLVDFWXDOO\RUGHULQJWKHWUDQVIHURISHWLWLRQHU
VFDVHVWRWKHFLYLOFRXUWVLQDFFRUGDQFHZLWKKLV
DIIRUPHQWLRQHGSXEOLFDQQRXQFHPHQWWKHVRRQHUWKHEHWWHU
3HWLWLRQHUKDVWKHULJKWWRZDLYHKLVSUHVHQFHDWWKHSHUSHWXDWLRQSURFHHGLQJVEHIRUHWKHUHVSRQGHQW
&RPPLVVLRQ
$V,VWDWHGHDUOLHUZKDWUHDOO\VHHPVWRKDYHLQLWLDOO\SURYRNHGSHWLWLRQHU
VGHFLVLRQWRJRRQVRPHNLQGRID
KXQJHUVWULNHZDVWKHUHVSRQGHQW&RPPLVVLRQ
VWXUQDERXWLQUHJDUGWRWKHLVVXHRIZKHWKHURUQRWKHFDQZDLYH
KLVSUHVHQFHGXULQJWKHSHUSHWXDWLRQSURFHHGLQJVEHIRUHLW$IWHUUXOLQJDWILUVWWKDWKHKDGVXFKULJKW
VXEVHTXHQWO\XSRQPRWLRQIRUUHFRQVLGHUDWLRQRIWKHSURVHFXWLRQWKH&RPPLVVLRQUHYHUVHGLWVHOIDQGUXOHGWKDW
KLVSUHVHQFHLVLQGLVSHQVDEOHDQGFDQWKXVEHVHFXUHGFRPSXOVRULO\%XWLIVXFKDFWLRQRIWKHUHVSRQGHQW
FRPPLVVLRQLVWKHFDXVHRISHWLWLRQHU
VKXQJHUVWULNHDVKHKDGVWDWHGDWWKHEHJLQQLQJKHPD\QRZGHVLVWIURP
FRQWLQXLQJZLWKKLVUDWKHUSHULORXVSRVWXUH$OOWKHPHPEHUVRIWKH&RXUWSDUWLFLSDWLQJLQWKLVFDVHDUHDJUHHGWKDW
WKHUXOLQJLQ3HRSOHYV$YDQFHxDUHOLHGXSRQE\WKHSURVHFXWLRQVKRXOGEHDWOHDVWPRGLILHGLIQRWFRPSOHWHO\
RYHUWXUQHG6L[RIXVQDPHO\-XVWLFHV)HUQDQGR7HHKDQNHH$QWRQLR0XxR]3DOPD$TXLQRDQGWKLVZULWHUDUHRIWKHYLHZ
WKDWSHWLWLRQHUDOWKRXJKXQGHUGHWHQWLRQDQGFKDUJHGZLWKDFDSLWDORIIHQVHKDVWKHULJKWWRDEVHQWKLPVHOIDWDQ\VWDJHRI
WKHWULDOZKLOHWKHRWKHUILYH-XVWLFHVQDPHO\-XVWLFHV&DVWUR0DNDVLDU(VJXHUUD&RQFHSFLRQ-UDQG0DUWLQEHOLHYHDOVR
WKDWWKDWULJKWH[LVWVVXEMHFWKRZHYHUWRWKHTXDOLILFDWLRQWKDWLWFDQQRWEHLQYRNHGZKHQHYHUKLVSUHVHQFHLVQHHGHGIRU
LGHQWLILFDWLRQSXUSRVHV$FFRUGLQJO\LWLVHQWLUHO\XSWRWKHSHWLWLRQHUZKHWKHURUQRWWRDWWHQGWKHSHUSHWXDWLRQSURFHHGLQJV
QRZJRLQJRQH[FHSWZKHQKHLVWREHLGHQWLILHGE\WKHZLWQHVVHVRQWKHVWDQGDQGRQO\IRUMXVWWKHWLPHQHHGHGIRUWKDW
H[FOXVLYHSXUSRVH
6SHDNLQJIRUP\VHOI,ILQGHPLQHQWPHULWLQWKHFRQWHQWLRQRISHWLWLRQHUWKDWHYHQIRULGHQWLILFDWLRQSXUSRVHVKH
FDQQRWEHPDGHWREHSUHVHQWDWWKHWULDODJDLQVWKLVZLOO6LQFHXQGHUWKH&RQVWLWXWLRQWULDORIFULPLQDOFDVHVLQWKH
DEVHQFHRIWKHDFFXVHGLVDOORZHGZKHQDIWHUWKHDUUDLJQPHQWDQGLQVSLWHRIGXHQRWLFHKHIDLOVWRDSSHDU
ZLWKRXWMXVWLILFDWLRQSXUVXDQWWR6HFWLRQRIWKH%LOORI5LJKWVRU$UWLFOH,9,FDQQRWVHHZK\DQDFFXVHGZKR
GRHVQRWZDQWWRXQGHUJRWKHH[SHULHQFHRIEHLQJUHSHDWHGO\SRLQWHGWRDQGRIEHLQJWKHWDUJHWRIWKHFXULRXV
H\HVRIWKHSXEOLFFDQQRWHOHFWWROHDYHWKHGHIHQVHRIKLVFDVHDQGRIKLVULJKWVWRKLVFRXQVHOLQKLVDEVHQFHRU
HYHQSXWKLPVHOIFRPSOHWHO\DWWKHPHUF\RIWKHFRXUWVHFXUHLQWKHWKRXJKWWKDWLWLVDQ\ZD\WKHLQHVFDSDEOHGXW\
RIWKHMXGJHQRWWRDOORZDQ\WKLQJLOOHJDORULQKXPDQWREHGRQHWRKLP
,FDQXQGHUVWDQGZK\DQDFFXVHGKDVWREHSUHVHQWDWWKHDUUDLJQPHQWDQGDWWKHUHDGLQJRIWKHVHQWHQFH,QWKH
IRUPHULWKDVWREHNQRZQWRWKHFRXUWWKDWKHLVLQGHHGWKHSHUVRQFKDUJHGDQGWKDWKHSHUVRQDOO\XQGHUVWDQGV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
WKHDFFXVDWLRQDJDLQVWKLP0RUHLPSRUWDQWO\WKHSOHDPXVWEHHQWHUHGE\KLPSHUVRQDOO\WRDYRLGDQ\
PLVFRQVWUXFWLRQRUPLVUHSUHVHQWDWLRQLQQRFHQWRURWKHUZLVH,QWKHODWWHULWLVHVVHQWLDOWKDWWKHDFFXVHGKLPVHOI
VKRXOGEHDZDUHIURPSHUVRQDONQRZOHGJHZKDWLVWKHYHUGLFWRIWKHFRXUWDQGLILWEHFRQYLFWLRQZKDWLVWKH
SHQDOW\WREHVHUYHGE\KLP7KHVHDUHPDWWHUVWRRSHUVRQDOWRSHUPLWGHOHJDWLRQ$WWKHVDPHWLPHKLVSUHVHQFH
PDNHVLWVLPSOHULQWKHSXEOLFLQWHUHVWIRUWKHDXWKRULWLHVWRHQIRUFHH[HFXWLRQRIDQ\DGYHUVHMXGJPHQW%XW,
FDQQRWVHHZK\DQDFFXVHGVKRXOGEHFRPSHOOHGWREHSUHVHQWDWWKHWULDOZKHQKHSUHIHUVSHUKDSVWKHVROLWXGH
RIKLVFHOOWRSUD\HLWKHUIRUIRUJLYHQHVVLIKHNQRZVKHLVJXLOW\RULIKHLVLQQRFHQWIRU*RGWRLOOXPLQHWKHFRXUW
VRWKHUHZRXOGEHXQHUULQJMXVWLFHLQKLVFDVH
0\XQGHUVWDQGLQJLVWKDWWKHSUREOHPRILGHQWLILFDWLRQRIDQDFFXVHGPD\EHDGHTXDWHO\VROYHGZLWKRXWYLRODWLQJ
WKHMXVWLILHGZLVKHVRIWKHDFFXVHGWREHOHIWDORQH7RVWDUWZLWKLIKHLVUHIHUUHGWRE\WKHZLWQHVVHVRIWKH
SURVHFXWLRQE\QDPHWKHFRXUWPD\SUHVXPHWKDWWKHDFFXVHGZKRKDVDFNQRZOHGJHGKLVWUXHQDPHDWWKH
DUUDLJQPHQWLVWKHRQHLQGLFDWHG7KLV&RXUWUXOHGXQHTXLYRFDOO\PRUHWKDQVL[W\ILYH\HDUVDJRLQ86YV$GROIR
3KLODQGUHLWHUDWHGLWLQ3HRSOHYV6DQWRV3KLOWZHQW\\HDUVODWHUDQGWKHUHKDVEHHQQR
FRQWUDU\RSLQLRQVLQFHWKHQWKDWWKHUHEXWWDEOHSUHVXPSWLRQRILGHQWLW\RISHUVRQLVDSSOLFDEOHQRWRQO\LQFLYLO
FDVHVEXWDOVRWRWKHLGHQWLILFDWLRQRIWKHDFFXVHGLQFULPLQDOFDVHV7RP\PLQGWKHUHLVDEVROXWHO\QRQHHGWKDW
WKHDFFXVHGEHSHUVRQDOO\LGHQWLILHGE\WKHFRXUWZKLOHWKHLQFXOSDWLQJZLWQHVVLVWHVWLI\LQJZKHUHWKHDFFXVHG
YROXQWDULO\ZDLYHVKLVSUHVHQFHDQGHYHQVXJJHVWVWRWKHFRXUWDVSHWLWLRQHUKDVGRQHWRDYDLORIWKHOHJDOO\
SUHVXPSWLRQMXVWPHQWLRQHG6HH6HFZ5XOH
2IFRXUVHLWLVWREHXQGHUVFRUHGWKDWWKHSUHVXPSWLRQLVMXULVWDQWXP7KXVWKHZDLYHURIWKHSUHVHQFHRIWKH
DFFXVHGDWWKHWULDOGRHVQRWSUHFOXGHKLPIURPSUHVHQWLQJHYLGHQFHWRRYHUFRPHWKHSUHVXPSWLRQ,DGPLWWKDW
WKHHQVXLQJVLWXDWLRQPD\SRVHSUREOHPVIRUWKHSURVHFXWLRQEXWZKHUHLQWKHGHPRFUDWLFZRUOGLVWKHDFFXVHG
VXSSRVHGWROHQGKLVKDQGLQRUGHUWRPDNHLWWKDWPXFKHDVLHUIRUWKHFRXUWWRFRQYLFWKLP2XUIXQGDPHQWDOODZ
QROHVVWKDQWKHUXGLPHQWDU\UXOHVRIIDLUSOD\H[SUHVVO\HQMRLQVWKDWWKHDFFXVHGPD\QRWEHFRPSHOOHGWR
LQFULPLQDWHKLPVHOI,WDNHVXFKLQMXQFWLRQWREHFRQVLVWHQWZLWKPDQ
VLQDOLHQDEOHULJKWWREHWUHDWHGZLWKWKH
GLJQLW\RIDKXPDQEHLQJDQGLWWKHUHIRUHH[WHQGVWRDQ\DQGDOOIRUPVRIPDNLQJWKHDFFXVHGDLGWKHSURVHFXWLRQ
LQSURYLQJLWVFDVH
,WLVFODLPHGWKDWWKHVWDWHKDVWKHXQTXHVWLRQDEOHULJKWDQGGXW\WRVHHWRLWWKDWWKHDFFXVHGLVQRWFRQYLFWHG
XQOHVVKHLVGXO\LGHQWLILHG7RWKHZLVGRPDQGQRELOLW\RIVXFKSURSRVLWLRQ,PXVWVD\DPHQ%XW,PDLQWDLQWKDWLW
LVDQLQFRQJUXLW\LQSULQFLSOHWRSUHGLFDWHRQVXFKDMXVWSUHPLVHWKHFRQFOXVLRQWKDWWKHVWDWHPD\FRPSHOWKH
DFFXVHGWRDVVLVWLWE\H[KLELWLQJKLPVHOIIRUSXUSRVHVRILGHQWLILFDWLRQ,DPDZDUHRISUHFHGHQWVWRWKHHIIHFWWKDW
WKHFRPSXOVLRQDJDLQVWVHOILQFULPLQDWLRQSURKLELWHGE\WKH%LOORI5LJKWVGRHVQRWFRQWHPSODWHDFWVUHTXLUHGRIWKH
DFFXVHGZKLFKGRQRWLQYROYHWKHHPSOR\PHQWRIKLVLQWHOOHFW,QRWKHUZRUGVKHFDQQRWEHPDGHWRSURGXFH
HYLGHQFHDJDLQVWKLPVHOIEXWKHFDQEHFRPSHOOHGWRSHUIRUPPHFKDQLFDODFWVFRQGXFLYHWRWKDWHQG%XW,GRQRW
VHHDQ\DQDORJ\EHWZHHQWKHIDFWVLQWKRVHSUHFHGHQWVDQGWKHFDVHDWEDUDQGLQDQ\HYHQW,GRQRWVHHWKH
MXVWLFHDQGIDLUQHVVRIWKRVHSUHFHGHQWV$VIDUDV,DPFRQFHUQHGWKHSURVHFXWLRQPXVWSURYHLWVHDVHE\LWVRZQ
HIIRUWDQGZLWKLQRZQUHVRXUFHVDQGVKRXOGQRWEHSHUPLWWHGWRGHSHQGRQWKHDFFXVHGIRUDQ\WKLQJWKDWZLOOKHOS
LWVHFXUHKLVFRQYLFWLRQ,NQRZWKDWWKH&RQVWLWXWLRQKDVSODFHGHPSKDVLVRQWKHGXWLHVDQGREOLJDWLRQVRISHUVRQV
LQWKH3KLOLSSLQHVHTXDOO\ZLWKWKH%LOORI5LJKWVEXWQRZKHUHLQWKRVHSHUWLQHQWSURYLVLRQVLQ$UWLFOH9GR,GLVFHUQ
DQ\GXW\RUREOLJDWLRQRQWKHSDUWRIDQDFFXVHGWRKHOSWKHSURVHFXWLRQLQKDYLQJKLPVHOILGHQWLILHGE\WKH
ZLWQHVVHVRIWKHVWDWH
$IWHUKDYLQJEHHQLQFRQWLQXRXVSUDFWLFHDWWKHEDUIRUPRUHWKDQWKUHHGHFDGHVEHIRUHMRLQLQJWKH&RXUW,VKRXOG
NQRZWKDWWKHDOPRVWLQYDULDEOHSURFHGXUHSUDFWLFHGLQWKHLGHQWLILFDWLRQRIDFFXVHGSHUVRQVDWWKHWULDOLVLQD
VHQVHLPSUDFWLFDOLIQRWIDUFLFDO$VWKHFDVHVDUHFDOOHGIURPWKHFDOHQGDUWKHDFFXVHGDUHPDGHWRVWDQGDQG
HYLGHQFHWKHLUSUHVHQFHZLWKLQWKHYLHZRIHYHU\ERG\LQWKHFRXUWURRPLQFOXGLQJWKHZLWQHVVHVRIWKHSURVHFXWLRQ
5DUHLVWKHRFFDVLRQZKHQQHFHVVDU\SUHFDXWLRQVDUHWDNHQDWWKHLQLWLDWLYHRIPHWLFXORXVGHIHQVHODZ\HUVWR
SUHYHQWWKHZLWQHVVHVIURPVHHLQJWKHDFFXVHGDVWKH\DQVZHUWKHFDOOLQJRIWKHFDOHQGDU0\SRLQWLVWKDWDQ\
TXLEEOLQJDERXWWKHSURSHULGHQWLILFDWLRQRIWKHDFFXVHGE\FRPSHOOLQJKLVSUHVHQFHDWWKHWULDOPD\QRWEHZRUWK
WKHLUUHSDUDEOHLQMXU\WRKXPDQGLJQLW\WKDWFDQEHFDXVHGE\ERGLO\DQGIRUFLEO\WDNLQJWKHDFFXVHGIURPKLVSODFH
RIFRQILQHPHQWWRWKHSODFHRIWULDOLQWKHHYHQWKHLQVLVWVRQKLVSRVHWKDWKHLVDJUHHDEOHDQ\ZD\WKDWWKH
SUHVXPSWLRQRQLGHQWLWLHV,KDYHUHIHUUHGWREHDSSOLHGWRKLVFDVH
,QWKHSUHFHGHQWVUHOLHGRQE\WKHSURVHFXWLRQLWLVKHOGWKDWLQDVPXFKDVWKHDFFXVHGLVXQGHUGHWHQWLRQKLV
SHUVRQLVVXEMHFWWRWKHGLVSRVLWLRQRIWKHFRXUWEHIRUHZKRPKHLVFKDUJHG,GLVDJUHH0\SRVLWLRQRQWKLVSRLQWLV
WKDWKLVGHWHQWLRQLVRQO\IRUWKHSXUSRVHRIVHFXULQJWKHH[HFXWLRQRIWKHMXGJPHQWLQWKHHYHQWXDOLW\RIFRQYLFWLRQ
DQGIRUQRRWKHUSXUSRVHGHURJDWLYHRIKLVIUHHGRPWRZDLYHKLVSHUVRQDOULJKWVUHODWHGWRWKHSURFHGXUHRIKLV
WULDO+LVFRQVWLWXWLRQDOULJKWVWREHKHDUGE\KLPVHOIRUFRXQVHOWREHLQIRUPHGRIWKHQDWXUHDQGFDXVHRIWKH
DFFXVDWLRQDJDLQVWKLPWRKDYHDVSHHG\DQGSXEOLFWULDOWRPHHWWKHZLWQHVVHVIDFHWRIDFHDQGWRKDYH
FRPSXOVRU\SURFHVVWRVHFXUHWKHDWWHQGDQFHRIZLWQHVVHVDQGWKHSURGXFWLRQRIZLWQHVVHVRQKLVEHKDOI
6HFWLRQ$UW,9LQFOXGLQJWKRVHQRWWREHFRPSHOOHGWREHDZLWQHVVDJDLQVWKLPVHOIWRUHPDLQVLOHQWDQG
QRWWREHVXEMHFWHGWRIRUFHYLROHQFHWKUHDWLQWLPLGDWLRQRUDQ\RWKHUPHDQVZKLFKYLWLDWHVKLVIUHHZLOO6HF
LGDQGHYHQWKDWRIQRWEHLQJWZLFHSXWLQMHRSDUG\RISXQLVKPHQWIRUWKHVDPHRIIHQVH6HFLGPD\
EHZDLYHGE\KLPSURYLGHGWKHZDLYHULVPDGHSURSHUO\$V,VHHLWWKHULJKWWREHSUHVHQWDWWKHWULDOLVPRUHRU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
OHVVWKHFRPSRVLWHRIWKHVHULJKWV,KDYHHQXPHUDWHG6LQFHDOORIWKHPVHSDUDWHO\DUHZDLYDEOHZK\PD\QRWWKH
ZDLYHURIDOORIWKHPEHGRQHZKROHVDOHVRWRVSHDNDVORQJDVWKHZDLYHULVFOHDUO\DQGYROXQWDULO\PDQLIHVWHGWR
WKHFRXUW$ERYHDOO,FRQVLGHUWKHULJKWRIDQDFFXVHGWRKXPDQGLJQLW\WREHPRUHSUHFLRXVWKDQDOOKLVRWKHU
ULJKWVKHQFH,FDQQRWVHHWKHSRLQWLQFRPSHOOLQJWKHDFFXVHGWRVDFULILFHKLVKXPDQGLJQLW\IRUWKHVDNHRI
HQDEOLQJWKHSURVHFXWLRQWRLGHQWLI\KLPLQSHUVRQZKHQWKHVDPHHQGFDQDVZHOOEHOHJDOO\DWWDLQHGZLWKRXW
H[DFWLQJIURPKLPVXFKVDFULILFH
6XVWDLQLQJDV,GRVXVWDLQWKHULJKWRISHWLWLRQHUWRDEVHQWKLPVHOIDWWKHWULDOSURSHULWLVXQQHFHVVDU\IRUPHWR
GLVFXVVZKHWKHURUQRWWKHSHUSHWXDWLRQSURFHHGLQJVFRQVWLWXWHSDUWRIWKHWULDO,PXVWPDNHLWFOHDUKRZHYHU
WKDQHYHQLI:HZHUHWRKROGWKDWWKH\DUHSDUWRIWKHWULDOSURSHU,LQVLVWWKDWLIWKHZLWQHVVHVZKRKDYHWHVWLILHGRU
ZLOOWHVWLI\DWWKHSHUSHWXDWLRQSURFHHGLQJVVKRXOGEHDYDLODEOHZKHQWKHWULDODFWXDOO\WDNHVSODFHLWLVWKHULJKWRI
WKHDFFXVHGWRKDYHWKHPUHFDOOHGDQGWREHH[DPLQHGIXUWKHUDQGHYHQDQHZLQWKHVRXQGGLVFUHWLRQRIWKHWULDO
FRXUW3UHVLGHQWLDO'HFUHHSDUDJUDSKDPHQGLQJVXESDUDJUDSKERI3UHVLGHQWLDO'HFUHH1RLVWR
EHVRFRQVWUXHGLQWKHLQWHUHVWRIIDLUQHVVDQGMXVWLFH
$V,FORVHWKLVFRQFXUUHQFHWZRWKRXJKWVFRQWLQXRXVO\UHFXUULQJLQP\PLQGGXULQJLWVSUHSDUDWLRQNHHSXUJLQJ
DUWLFXODWLRQ7KHILUVWLVWKDWWRFRPPLWVXLFLGHLVSURKLELWHGE\WKHODZVRI*RGDQGPDQ1RRQHKDVWKHULJKWWR
WDNHKLVOLIHIRUDQ\UHDVRQ:LWKDOOHDGHUVKLSLQDQ\ILHOGRIKXPDQHQGHDYRUFUHDWHVDUHVSRQVLELOLW\WKDWNQRZV
QRVXUFHDVHIRUDQ\NLQGRIFRQYHQLHQFH3HUVHYHUDQFHRISXUSRVHWREHRIUHDOVLJQLILFDQFHDQGZRUWKUHTXLUHV
RQH
VVXUYLYDO7KHIXWXUHLVLQVFUXWDEOHWKHKDQGRIIDWHJXLGHVRQO\WKRVHZKRELGHWKHLUWLPHDQGGRQRWGHVSDLU
EHIRUHWKHGHVLJQHGPRPHQWFRPHV7KXVLWFRXOG\HWEHDFULPHDOVRDJDLQVWWKHLQWHUHVWVRIRXUFRXQWU\DQG
SHRSOHWRLQGXOJHLQVHOIGHVWUXFWLRQZKHQRQHNQRZVWKDWKHKDVWDOHQWVDQGDWWULEXWHVWKDWFDQEHRIIHUHGIRUWKH
DWWDLQPHQWRIWKHQDWLRQDOGHVWLQ\
7KHVHFRQGFRQFHUQVWKH6XSUHPH&RXUWZKRVHLQGHSHQGHQFHRIFRQYLFWLRQLWLVWKHERXQGHQGXW\RIHYHU\
)LOLSLQRWRNHHSXQVXOOLHG7KHXQNLQGHVWWKLQJRIDOOLVIRUWKRVHWRZKRP\RXFRQFHGHWKHORIWLHVWRIPRWLYHVWR
LPSXJQUHFNOHVVO\\RXURZQ7KHXQFHDVLQJTXHVWIRUWKHDFKLHYHPHQWRIWKHQDWLRQDOJRDOQDWXUDOO\GLYLGHVPHQ
LQDOOGHPRFUDFLHVLQWRJURXSVHDFKFRPSRVHGRIWKRVHVKDULQJFRPPRQYLHZVDQGIHHOLQJVDVWRKRZWRPDNH
WKHFRXQWU\VXFFHHGHDUOLHULQUHDOL]LQJLWVLGHDOV6XFKGLVSDULW\KRZHYHUFDQQRWSURGXFHGLVXQLW\DVORQJDV
HYHU\RQHLQYROYHGEHFDXVHRIRIILFLDOGXW\RUFKRLFHWUXVWVWKHJRRGIDLWKRIWKHRWKHU
)RUWKHPHPEHUVRIWKH&RXUWWRKDSSHQWRFRLQFLGHLQOHJDOYLHZVZLWKWKH([HFXWLYHLVQRWVHUYLOLW\1HLWKHU
VKRXOGLWEHFRQVLGHUHGHYLGHQFHRIDQ\PHDVXUHRIRUFKHVWUDWLRQRUFRPPRQSODQQLQJ$VDPDWWHURIIDFWWKHUH
KDVQHYHUEHHQDQ\VXFKWKLQJ7KHEHVWSURRILVWKDWDV,KDYHHPSKDVL]HGDWWKHRXWVHWWKLVLVWKHILUVWPDUWLDO
ODZFDVHLQZKLFKWKHUHTXLUHGPDMRULW\IRUGRFWULQDOSXUSRVHVKDVEHHQDWWDLQHG:KHUHWKHQLVWKHDOOHJHG
RUFKHVWUDWLRQ"$QGKRZFRXOGWKHFKDUJHKDYHEDVLVLQWKHIDFHRIWKHXQGHQLDEOHKDSSHQVWDQFHWKDWQRPDUWLDO
ODZRUFRQVWLWXWLRQDOGHFLVLRQKDV\HWFRPHRXWIURPWKH&RXUWZLWKRXWYLJRURXVDQGH[WHQVLYHGLVVHQWVRIQRWDEOH
FRQVLVWHQF\,QGHHGRFFDVLRQVWKHUHKDYHEHHQZKHQRQHRUWZRPRUHYRWHVEHFDPHLPSHUDWLYHIRUDPRUH
HIIHFWLYHDQGFRQFOXVLYHUXOLQJDQGQRRQHFDQVD\WKDWDQ\ERG\FRQFHUQHGUHFHLYHGGLFWDWLRQDVWRZKDWWRGR
2IP\RZQNQRZOHGJH,EHDUZLWQHVVWKDWQRWHYHQDILQJHUKDVEHHQOLIWHGLQDQ\PDQQHUDJDLQVWDQ\RIWKH
GLVVHQWHUV$VRIQRZWKH&RXUWKDVQRWIRXQGHQRXJKFDXVHWRKROGDQ\RIWKH3UHVLGHQW
VDFWXDWLRQVVXEPLWWHG
IRU2XUVFUXWLQ\WRKDYHRYHUVWHSSHGFRQVWLWXWLRQDOERXQGV,WLVHYLGHQWWKDWGXHFDUHLVEHLQJWDNHQWRDYRLGIDXOW
LQWKLVUHVSHFW,FDQLPDJLQHQRUHDVRQZK\DQGQRRFFDVLRQZKHQVXFKHIIRUWZLOOHYHUEHUHOD[HGDWDOO0RUHVR
LQWKHHDUQHVWYLJLOE\WKH6XSUHPH&RXUW
0812=3$/0$-GLVVHQWLQJ
,FRQFXUZLWKWKHGLVVHQWLQJ2SLQLRQRI-XVWLFH&ODXGLR7HHKDQNHHZLWKDGGLWLRQDOH[SODQDWLRQIRUP\YRWH
2QWKH0RWLRQWRZLWKGUDZ3HWLWLRQ²
)URPDOHWWHURI%HQLJQR$TXLQR-URI$SULODGGUHVVHGWRKLVZLIHFKLOGUHQUHODWLYHVDQGIULHQGV
VXEPLWWHGWRWKH&RXUWDQGQRZSDUWRIWKHUHFRUGRIWKHFDVHVHHSDJHRI-XVWLFH7HHKDQNHH
VGLVVHQWLQJ
RSLQLRQ,DPFRQYLQFHGWKDWSHWLWLRQHUQRORQJHUGHVLUHVWRVHHNUHGUHVVRUUHOLHIIURPWKLV&RXUW+HZRXOG
UDWKHUPDNHRIKLVSOLJKWKLVFRQWLQXHGGHWHQWLRQIURP6HSWHPEHULQDPLOLWDU\FDPSDQGWULDOEHIRUHD
0LOLWDU\&RPPLVVLRQIRUFULPHVDOOHJHGO\FRPPLWWHGEHIRUHWKHSURFODPDWLRQRI0DUWLDO/DZDPDWWHURI
FRQVFLHQFHEHWZHHQKLPVHOIDQGWKH3UHVLGHQWRIWKH5HSXEOLFDQGRIIHUKLVOLIHIRUZKDWKHEHOLHYHVLVDULJKWIXO
FDXVH:KRDP,WRVWDQGRQWKHZD\RIWKLVPDQZKRRIIHUVKLPVHOILQVXSUHPHVDFULILFHDQGLVUHDG\WRFRQVLJQ
KLVIDWHWRKLV0DNHUIRUKLVFRXQWU\DQGKLVSHRSOH"
2QWKHPHULWVRIWKH&DVH²
,YRWHWRJUDQWWKH3HWLWLRQIRU3URKLELWLRQEHFDXVHEUXVKLQJDVLGHWKHSHUVRQDOLWLHVRIWKHSDUWLHVLQYROYHGWKDWLV
WKHIDFWWKDW%HQLJQR$TXLQR-UZDVDPHPEHURIWKH6HQDWHDQGDNQRZQOHDGHURIWKH2SSRVLWLRQDWWKHWLPH
PDUWLDOODZZDVSURFODLPHGDQGWKDW3UHVLGHQW)HUGLQDQG(0DUFRVEHOLHYHVLQWKH5XOHRI/DZQRWZLWKVWDQGLQJ
PDUWLDOUXOH,DPFDOOHGXSRQDWWKLVPRPHQWWROD\GRZQDSULQFLSOHRIODZZKLFKZLOOGHFLGHWKHIDWHQRWRQO\RI
WKHSUHVHQWJHQHUDWLRQEXWDOVRWKDWRI)LOLSLQRVVWLOOWREHERUQ)RUWKHPDLQTXHVWLRQQRZDWVWDNH²ZKHWKHURU
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
QRWPLOLWDU\WULEXQDOVFDQWU\DQGUHQGHUDYHUGLFWRQFLYLOLDQVIRURIIHQVHVDOOHJHGO\FRPPLWWHGEHIRUHRUHYHQ
GXULQJPDUWLDOUXOHQRWZLWKVWDQGLQJWKHIDFWWKDWFLYLODXWKRULW\LVVXSUHPHDQGFLYLOFRXUWVDUHH[LVWLQJDQG
IXQFWLRQLQJLVVXSUHPHDQGFLYLOFRXUWVDUHH[LVWLQJDQGIXQFWLRQLQJXQGHUWKH&RQVWLWXWLRQ²UDLVHVEHIRUHP\
H\HVWKHJUXHVRPHVSHFWUHRIRQHDKXQGUHGDWKRXVDQGFLYLOLDQ)LOLSLQRVEHLQJGUDJJHGE\WKHPLJKW\DUPRI
WKHPLOLWDU\EHIRUHLWVRZQFUHDWHGDQGPDQQHGWULEXQDOVFRPPLVVLRQVHWFIRURIIHQVHVUHDORULPDJLQDU\DQG
WULHGDQGVHQWHQFHGZLWKRXWWKHFRQVWLWXWLRQDOVDIHJXDUGVDWWHQGDQWWRDWULDOE\FLYLOFRXUWVVHHSDJHVRI
-XVWLFH7HHKDQNHH
V2SLQLRQIRUWKHVHVDIHJXDUGV7UXHLWLVWKDWWKHSLFWXUH,FRQMXUHEHIRUHPHPD\QRWWDNH
SODFHDWDOOXQGHUWKHSUHVHQWGLVSHQVDWLRQEHFDXVH3UHVLGHQW)HUGLQDQG(0DUFRVDV&RPPDQGHULQ&KLHIRI
WKH$UPHG)RUFHVLVFRPPLWWHGWRXSKROGWKH&RQVWLWXWLRQDQGDVTXRWHGE\-XVWLFH7HHKDQNHHEHOLHYHVLQWKH
SURWHFWLRQRIWKH%LOORI5LJKWVVHHSDJHRI-XVWLFH7HHKDQNHH
V2SLQLRQ%XWZKDWDERXWWRPRUURZDQGWKH
GD\DIWHUWRPRUURZZKHQZHVKDOODOOEHJRQHDQGWKHSROLWLFDODWPRVSKHUHGLIIHUHQW"/HJDOSUHFHSWVZKLFKDUHWR
SURWHFWWKHEDVLFIXQGDPHQWDOULJKWVDQGOLEHUWLHVRIDQLQGLYLGXDOPXVWEHODLGGRZQQRWRQO\IRUWKHSUHVHQWEXW
IRUDOOWLPHVDQGIRUDOOFRQGLWLRQV7KH%LOORI5LJKWVPXVWUHPDLQILUPLQGHVWUXFWLEOHDQGXQ\LHOGLQJWRDOOIRUPVRI
SUHVVXUHIRUOLNH0RXQW6LQDLRI0RVHVLWFDQEHWKHRQO\UHIXJHRIDSHRSOHLQDQ\FUXFLEOHWKH\PD\VXIIHULQWKH
FRXUVHRIWKHLUGHVWLQ\
)RRWQRWHV Wr x vK T Z k
*51R/HQWLWOHG,QWKH0DWWHURIWKH3HWLWLRQIRU+DEHDV&RUSXVRI%HQLJQR6$TXLQR
-UHWDO3HWLWLRQHUVY+RQ-XDQ3RQFH(QULOHHWDO5HVSRQGHQWV
6KHHW1R²,Q&ULPLQDO&DVH1R0&WKHFKDUJHVKHHWDOOHJHGYLRODWLRQRI*HQHUDO2UGHU
1RVDQGLQUHODWLRQWR3UHVLGHQWLDO'HFUHH1R
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVLQRUDERXWWKH
SHULRGFRPSULVLQJWKH\HDUWR2FWREHUDW7LPHV6WDQG/HGHVPD&RXUW
3URMHFW4XH]RQ&LW\DQG3DUDQDTXH5L]DOGLGWKHQDQGWKHUHZLOIXOO\XQODZIXOO\DQGIHORQLRXVO\
KDYHLQKLVSRVVHVVLRQFXVWRG\DQGFRQWUROWKHIROORZLQJILUHDUPVDPPXQLWLRQH[SORVLYHVDQG
DFFHVVRULHVWRZLW
6KHHW1R²,Q&ULPLQDO&DVH1R0&WKHFKDUJHVKHHWDOOHJHGYLRODWLRQRIWKH$QWL
6XEYHUVLRQ$FW
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HG
FRQVSLUDF\WRRYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\
RILWVSROLWLFDOVXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKH
SXUSRVHRISODFLQJVXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQ
DOLHQSRZHULQRUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKH
PRQWKRI0D\RUSULRUDQGRUVXEVHTXHQWWKHUHWRLQ%DUULR$OWR+DFLHQGD/XLVLWD6DQ0LJXHO
7DUODF7DUODFGLGWKHQDQGWKHUHNQRZLQJO\ZLOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWV
FRQVSLULQJFRQIHGHUDWLQJZLWKRWKHUOHDGHUVDQGRUPHPEHUVRIWKHLUVDLGRUJDQL]DWLRQJLYHWRRQHRI
WKHPWKHRWKHUDFFXVHG%(1-$0,10%,(-5DOLDV&20'50(/2'<RIWKH+0%DQGRUWKH13$
VL[DUPDOLWHULIOHVWRGHOLYHUWKHVDLGILUHDUPVDJDLQVWWKHGXO\FRQVWLWXWHGJRYHUQPHQWRIWKH
3KLOLSSLQHV
6KHHW1R²,Q&ULPLQDO&DVH1R0&WKHFKDUJHVKHHWDOVRDOOHJHGYLRODWLRQRIWKH$QWL
6XEYHUVLRQ$FW
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HG
FRQVSLUDF\WRRYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\
RILWVSROLWLFDOVXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKH
SXUSRVHRISODFLQJVXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQ
DOLHQSRZHULQRUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKH
PRQWKRI-DQXDU\RUSULRUDQGRUVXEVHTXHQWWKHUHWRDW7LPHV6W4XH]RQ&LW\GLGWKHQ
DQGWKHUHNQRZLQJO\ZLOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJFRQIHGHUDWLQJZLWK
RWKHUOHDGHUVDQGRUPHPEHUVRIVDLGRUJDQL]DWLRQVJLYHWRRQHRIWKHPWKHRWKHUDFFXVHG
%(1-$0,16$1*8<2DOLDV&20'5386$RIWKH+0%DQGRU13$RQH$.ULIOHSOXVWZR
PDJD]LQHVZLWKVHYHUDOURXQGVRIDPPXQLWLRQDQGWZRDXWRPDWLF0FDUELQHVIROGLQJW\SHSOXV
WZREDQDQDW\SHPDJD]LQHVZLWKDPPXQLWLRQIRUWKHSXUSRVHRIXVLQJVDLGILUHDUPVDJDLQVWWKH
GXO\FRQVWLWXWHGJRYHUQPHQWRIWKH3KLOLSSLQHV
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
6KHHW1R²,Q&ULPLQDO&DVH1R0&WKHFKDUJHVKHHWDOOHJHGWKHFRPPLVVLRQRIPXUGHULQ
UHODWLRQWR*HQHUDO2UGHU1R%
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRDQGWULDEOHE\WKH0LOLWDU\7ULEXQDOVFRQVSLULQJ
WRJHWKHUDQGFRQIHGHUDWLQJZLWKRQH&20'5&58=ZKRLVDOUHDG\GHFHDVHGGXULQJWKHSHULRGRI
FRPSULVLQJWKHODVWGD\VRI1RYHPEHUDQG'HFHPEHULQ%R6DQ0LJXHO7DUODF7DUODFZLWK
LQWHQWWRNLOODQGDOODUPHGZLWKILUHDUPVDQGLQEDQGGLGWKHQDQGWKHUHZLOIXOO\XQODZIXOO\DQG
IHORQLRXVO\WDNHRQH&(&,/,2680$7%DUULR&DSWDLQRI0RWULFR/D3D]7DUODFIURPKLVKRXVHDW
VDLGSODFHDQGWKHUHDIWHUGLGWKHQDQGWKHUHVKRRWKLPLQIOLFWLQJDJXQVKRWZRXQGRQKLVKHDGWKXV
FDXVLQJKLVGHDWKDVDFRQVHTXHQFH
7KDWWKHTXDOLI\LQJDQGJHQHULFDJJUDYDWLQJFLUFXPVWDQFHVRIWUHDFKHU\HYLGHQWSUHPHGLFDWLRQXVH
RIVXSHULRUVWUHQJWKZLWKWKHDLGRIDUPHGPHQGLVJXLVHFUDIWDQGPRWRUYHKLFOHZHUHSUHVHQWLQWKH
FRPPLVVLRQRIWKHFULPH
6KHHW1R²,Q&ULPLQDO&DVH1R0&WKHFKDUJHVKHHWDOOHJHGYLRODWLRQRIWKH$QWL
6XEYHUVLRQ$FW
63(&,),&$7,21,
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDODVUDQNLQJOHDGHUV
RIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ0DSDJSDOD\D
QJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HGFRQVSLUDF\WR
RYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\RILWVSROLWLFDO
VXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKHSXUSRVHRISODFLQJ
VXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQDOLHQSRZHULQRUGHU
WRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKHPRQWKRI$SULORU
SULRUDQGRUVXEVHTXHQWWKHUHWRDW7LPHV6W4XH]RQ&LW\GLGWKHQDQGWKHUHNQRZLQJO\ZLOIXOO\
XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJFRQIHGHUDWLQJZLWKRWKHUOHDGHUVDQGRUPHPEHUV
RIVDLGRUJDQL]DWLRQJLYHWRVDLGRUJDQL]DWLRQVWKURXJKLWVOHDGHUVRURIILFHUVWKHVXP3IRU
WKHSXUSRVHRIXVLQJVDLGPRQH\WRVWDJHDQ13$VSRQVRUHGGHPRQVWUDWLRQLQ0DQLODZKLFKZDVLQ
IDFWFDUULHGRXWLQ&RQJUHVV0DODFDxDQJDQGLQWKH86(PEDVV\RQ$SULOIRUWKHSXUSRVH
DERYHPHQWLRQHG
63(&,),&$7,21,,
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HG
FRQVSLUDF\WRRYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\
RILWVSROLWLFDOVXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKH
SXUSRVHRISODFLQJVXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQ
DOLHQSRZHULQRUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKH
SHULRGFRPSULVLQJWKHHDUO\SDUWRIRUSULRUDQGRUVXEVHTXHQWWKHUHWRLQ&RQFHSWLRQ7DUODF
GLGWKHQDQGWKHUHNQRZLQJO\ZLOOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJ
FRQIHGHUDWLQJZLWKRWKHUOHDGHUVDQGRUPHPEHUVRIVDLGRUJDQL]DWLRQJLYHWRRQHRIWKHPWKHRWKHU
DFFXVHG%(51$%(%86&$<12DOLDV&20'5'$17(RIWKH+0%DQGRU13$RQHFDOLEHU
SLVWROZLWKPDJD]LQHDQGDPPXQLWLRQIRUWKHSXUSRVHRIXVLQJWKHVDPHDJDLQVWWKHGXO\FRQVWLWXWHG
JRYHUQPHQWRIWKH3KLOLSSLQHV
63(&,),&$7,21,,,
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HG
FRQVSLUDF\WRRYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\
RILWVSROLWLFDOVXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKH
SXUSRVHRISODFLQJVXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQ
DOLHQSRZHULQRUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKH
PRQWKRI$XJXVWRUSULRUDQGRUVXEVHTXHQWWKHUHWRLQ%DUULR6DQ)UDQFLVFR7DUODFGLGWKHQ
DQGWKHUHNQRZLQJO\ZLOOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJFRQIHGHUDWLQJZLWK
RWKHUOHDGHUVDQGRUPHPEHUVRIVDLGRUJDQL]DWLRQJLYHWRRQHRIWKHPWKHRWKHUDFFXVHG
%(51$%(%86&$<12DOLDV&20'5'$17(WZRFDOLEHUSLVWROVLQWKHKRXVHRI/HRQLGD
$UFHRIRUWKHSXUSRVHRIXVLQJWKHVDLGILUHDUPVDJDLQVWWKHGXO\FRQVWLWXWHGJRYHUQPHQWRIWKH
3KLOLSSLQHV
63(&,),&$7,21,9
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HG
FRQVSLUDF\WRRYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\
RILWVSROLWLFDOVXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKH
SXUSRVHRISODFLQJVXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQ
DOLHQSRZHULQRUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKH
PRQWKRI2FWREHUSULRUDQGRUVXEVHTXHQWWKHUHWRLQ%DUULR$OWR+DFLHQGD/XLVLWD6DQ
0LJXHO7DUODF7DUODFGLGWKHQDQGWKHUHNQRZLQJO\ZLOOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWV
FRQVSLULQJFRQIHGHUDWLQJZLWKRWKHUOHDGHUVDQGRUPHPEHUVRIVDLGRUJDQL]DWLRQJLYHWR&0'5
$57+85*$5&,$DQG-26(%86&$<12DOLDV&20'5-2(WZRDUPRUHGYHVWVDQGDSDLURI
ZDONLHWDONLHIRUWKHSXUSRVHRIXVLQJWKHPDJDLQVWWKHGXO\FRQVWLWXWHGJRYHUQPHQWRIWKH
3KLOLSSLQHV
63(&,),&$7,219
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HGWR
RYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\RILWVSROLWLFDO
VXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKHSXUSRVHRISODFLQJ
VXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQVXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQDOLHQSRZHULQ
RUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5RQRUDERXW1RYHPEHU
RUSULRUDQGRUVXEVHTXHQWWKHUHWRLQ6DQ0LJXHO7DUODF7DUODFGLGWKHQDQGWKHUHNQRZLQJO\
ZLOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJFRQIHGHUDWLQJZLWKRWKHUOHDGHUVDQGRU
PHPEHUVRIVDLGRUJDQL]DWLRQJLYHWRRQHRIWKHP&20'5$/,%$6%$6WKURXJK&20'5'$1,/2
VHYHUDOILUHDUPVDQGDPPXQLWLRQZKLFKZHUHUREEHGDQGWDNHQIURPWKHKRXVHRI0DQXHO5RGULJXH]
RI+DFLHQGD5RGULJXH]LQFOXGLQJDFDUELQHZLWKDWHOHVFRSLFVLJKWIRUWKHSXUSRVHRIXVLQJWKHVDLG
ILUHDUPVDQGDPPXQLWLRQDJDLQVWWKHGXO\FRQVWLWXWHGJRYHUQPHQWRIWKH3KLOLSSLQHVDQGLQIDFWVDLG
ILUHDUPVLQFOXGLQJWKHFDUELQHZLWKDWHOHVFRSLFVLJKWZHUHUHFRYHUHGIURP&20'5$/,%$6%$6DQG
KLVJURXSZKHQWKH\ZHUHNLOOHGDW%DUULR$OPHQGUDV&RQFHSFLRQ7DUODF
63(&,),&$7,219,
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJOHDGHUV
RIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ0DSDJSDOD\D
QJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HGFRQVSLUDF\WR
RYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\RILWV
VXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKHSXUSRVHRISODFLQJ
VXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQDOLHQSRZHULQRUGHU
WRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKHSHULRGFRPSULVLQJWKH
\HDUWRRUSULRUDQGRUVXEVHTXHQWWKHUHWRDWWLPHV6W4XH]RQ&LW\GLGWKHQDQG
WKHUHNQRZLQJO\ZLOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJFRQIHGHUDWLQJZLWKRWKHU
OHDGHUVDQGRUPHPEHUVRIVDLGRUJDQL]DWLRQJLYHDQGSURYLGHVKHOWHUDQGRUPHGLFDOWUHDWPHQWWR
ZRXQGHGVLFNRIILFHUVOHDGHUVPHPEHUVRIWKH+0%13$WRZLW
52%(5726$1726DOLDV+0%13$WRZLW
%(1-$0,16$1*8<2DOLDV&20'5386$
&20'5-8$1,1*5,9(5$DOLDV&20'5-8$1,1*
)(51$1'2%25-$DOLDV&20'5)(5
6,0(216$1*.$3DOLDV&20'5)5('
&20'578&
3(3,72/23(=DOLDV%2<%$72&
52'2/)25$026DOLDV&20'55$0,5DOLDV&20'558'<
%2<%8/'21*DOLDV%2<3,7&+2
26&$53$&+(&2DOLDV52<
6KHHW1R²$QGLQ&ULPLQDO&DVH1R0&WKHFKDUJHVKHHWDOOHJHGYLRODWLRQRIWKH$QWL
6XEYHUVLRQ$FW
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
,QWKDWWKHDERYHQDPHGDFFXVHGSHUVRQVVXEMHFWWRWULDOE\WKH0LOLWDU\7ULEXQDOVDVUDQNLQJ
OHDGHUVRIWKH&RPPXQLVW3DUW\RIWKH3KLOLSSLQHVDQGRULWVPLOLWDU\DUPVVXFKDVWKH+XNERQJ
0DSDJSDOD\DQJ%D\DQ+0%DQGRUWKH1HZ3HRSOH
V$UP\13$FRQVWLWXWLQJDQRUJDQL]HG
FRQVSLUDF\WRRYHUWKURZWKH*RYHUQPHQWRIWKH5HSXEOLFRIWKH3KLOLSSLQHVRUWKHJRYHUQPHQWRIDQ\
RILWVSROLWLFDOVXEGLYLVLRQVE\IRUFHYLROHQFHGHFHLWVXEYHUVLRQDQGRWKHULOOHJDOPHDQVIRUWKH
SXUSRVHRISODFLQJVXFKJRYHUQPHQWRUSROLWLFDOVXEGLYLVLRQXQGHUWKHFRQWURODQGGRPLQDWLRQRIDQ
DOLHQSRZHULQRUGHUWRDFKLHYHWKHVDPHWKHDFFXVHG%(1,*126$48,12-5LQRUDERXWWKH
PRQWKRI'HFHPEHURUSULRUDQGRUVXEVHTXHQWWKHUHWRDW7LPHV6W4XH]RQ&LW\GLG
WKHQDQGWKHUHNQRZLQJO\ZLOIXOO\XQODZIXOO\DQGIHORQLRXVO\E\RYHUWDFWVFRQVSLULQJFRQIHGHUDWLQJ
ZLWKRWKHUOHDGHUVDQGRUPHPEHUVRIVDLGRUJDQL]DWLRQJLYHWR%(1-$0,16$1*8<2DOLDV&20'5
386$DQGKLV13$FRPSDQLRQVLQFOXGLQJ3&/79,&725&25386FDVKPRQH\LQWKHDPRXQWRI
3IRUWKHSXUSRVHRIUHQWLQJDFDUWREHXVHGLQUDLGLQJWKH3KLOLSSLQH0LOLWDU\$FDGHP\%DJXLR
&LW\RIILUHDUPVDQGDPPXQLWLRQZKLFKZDVLQFDUULHGRXWRQ'HFHPEHU
5HVSRQGHQW
V0HPRUDQGXPGDWHG0DUFKSSWR
6HH5ROOR6XSSOHPHQWDO3HWLWLRQSSDQG6HFRQG6XSOHPHQWDO3HWLWLRQSS
-XVWLFHV&DVWUR%DUUHGR0DNDVLDU$QWRQLR(VJXHUUD$TXLQR&RQFHSFLRQ-UDQG0DUWLQ
%HQLJQR6$TXLQR-UHWDOY-XDQ3RQFH(QULOHHWDO*51R/5RFHVHWDOY
6HFUHWDU\RI1DWLRQDO'HIHQVH/6ROLYHQHWDOY6HFUHWDU\RI1DWLRQDO'HIHQVH
/DQG5RQGRQHWDOY6HFUHWDU\RI1DWLRQDO'HIHQVH/DOOSURPXOJDWHGRQ
6HSWHPEHU6&5$
%HQLJQR6$TXLQR-UHWDOY&RPPLVVLRQRQ(OHFWLRQVHWDO*51R/-DQXDU\
6HHDOVR'H&KDYH]Y=REHO/DQG'LPDDODHWDOY=REHO/ERWKSURPXOJDWHG
-DQXDU\7KHVHWZRFDVHVFRQVLGHU3UHVLGHQWLDO'HFUHH1RDVSDUWDQGSDUFHORIWKH
ODZRIWKHODQGDFFRUGLQJWRWKHUHYLVHG&RQVWLWXWLRQLWVHOI
0LOLWDU\FRPPLVVLRQVLQ$PHULFDQSUDFWLFHDUHWKHWUDGLWLRQDOFRXUWGXULQJWKHSHULRGVRIPDUWLDO
UXOHRUPLOLWDU\JRYHUQPHQW)DLUPDQ7KH/DZRI0DUWLDO5XOH(GS,WSURFHHGLQJV
GHULYHVWKHLUVROHDXWKRULW\IURPWKHH[LVWHQFHRIDFWXDOUHEHOOLRQDQGWKHGXW\RIGRLQJZKDWHYHU
PD\EHQHFHVVDU\WRTXHOOLWDQGWRUHVWRUHSHDFHDQGRUGHU7KH.LQJY$OOHQ>@,ULVK5HS
$FFRUGLQJWR)DLUPDQDPLOLWDU\FRPPLVVLRQLVDWULEXQDOHVWDEOLVKHGWRWU\SHUVRQVQRWVXEMHFWWR
RXUPLOLWDU\ODZFKDUJHGZLWKYLRODWLRQVRIZDURULQSODFHVVXEMHFWWRPLOLWDU\JRYHUQPHQWRUPDUWLDO
UXOHZLWKRIIHQVHVHLWKHURIFLYLOQDWXUHRUDJDLQVWWKHUHJXODWLRQVRIWKHPLOLWDU\DXWKRULWLHV
)DLUPDQVXSUDS2QHRIWKHMXVWLILFDWLRQVLVJLYHQIRUWKHWULDORIFLYLOLDQVE\PLOLWDU\
FRPPLVVLRQVGXULQJDQLQVXUUHFWLRQKDGEHHQWRWU\WRDFFXVHGPRUHTXLFNO\ZLWKDYLHZWRVWRSSLQJ
PRUHHIIHFWLYHO\WKHSURJUHVVRIWKHLQVXUUHFWLRQ,ELGFLWLQJ)LQODVRQ
V5HSIIS
:LQWKURS0LOLWDU\/DZDQG3UHFHGHQWV9ROVDQGS
0R\HUY3HDERG\86/HG
6FKZDUW]&RQVWLWXWLRQDO/DZS
'XHSURFHVVRIODZGRHVWRQHFHVVDULO\PHDQDMXGLFLDOSURFHHGLQJ²WKHSURFHHGLQJPD\EH
DGDSWHGWRWKHQDWXUHRIFDVH²EXWLWGRHVQHFHVVLWDWHDQRSSRUWXQLW\IRUDKHDULQJDQGDGHIHQVH
%DOODUGY+XQWHU866&W/HG6LPRQY&UDIW
866&W/HG,QUH%U\DQW0DFNH\6HH/RJXHY
)HQQLQJ$SS'&FI0DWWHURI/DPEHUW&DO3
/5$$P6W5HS,QUH:HOOPDQ.DQ$SS36WDWHY%LOOLQJV
0LQQ1:$P6W5HS$OOJRUY1HZ-HUVH\6WDWH+RVSLWDO
1-(T$,QUH$OOHQ9W$/5$16
%DUU\Y+DOO)G
'XHSURFHVVLVQRWQHFHVVDULO\MXGLFLDO0HQGR]D(VSXHODVY3URYLQFLDO:DUGHQRI%RKRO*5
1R/0D\3KLO,QVXODU*RYWY/LQJ6X)DQ3KLO)RUEHVY7LDFR
3KLO7DQ7HY%HOO3KLO3KLO'H/HRQY'LUHFWRURI3ULVRQV3KLO86Y
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
*RPH]-HVXV3KLO86Y,JQDFLR3KLO&RUQHMRY*DULHO3KLODQG3HRSOH
Y3RQFHGH/HRQ3KLO
8QGHURUGLQDU\FLUFXPVWDQFHVWKHFRQVWLWXWLRQDOJXDUDQW\DVWRGXHSURFHVVRIODZLPSOLHVDIRUPDO
MXGLFLDOSURFHHGLQJ,QIDFWPRVWRIWKHGHILQLWLRQVUHIHUWRMXGLFLDOSURFHHGLQJVDVDQHOHPHQWRIGXH
SURFHVVRIODZ1HYHUWKHOHVVLWLVVHWWOHGWKDWVXFKSURFHHGLQJVDUHQRWDQLQGLVSHQVDEOHUHTXLVLWHLQ
DOOFDVHV,WLVDFFRUGLQJO\VDLGWKDWWKHWHUPCSURFHHGLQJ
PHDQVVXFKDQH[HUFLVHRIWKHSRZHUVRI
JRYHUQPHQWDVWKHVHWWOHGPD[LPVRIWKHODZSHUPLWDQGVDQFWLRQXQGHUVXFKVDIHJXDUGVIRUWKH
SURWHFWLRQRILQGLYLGXDOULJKWVDVWKHVHPD[LPVSUHVFULEHIRUWKHFODVVRIFDVHVWRZKLFKWKHRQHLQ
TXHVWLRQEHORQJV4XHVWLRQVPD\DULVHZKLFKPD\EHEHVWGHWHUPLQHGRWKHUZLVHWKDQE\RUGLQDU\
SURFHVVRIMXGLFLDOLQYHVWLJDWLRQZLWKRXWYLRODWLQJWKHFRQVWLWXWLRQDOSURYLVLRQDVWRGXHSURFHVVRIODZ
,QPDQ\PDWWHUVWKHWULEXQDOUHTXLUHPHQWRIGXHSURFHVVPD\EHPHWE\DERDUGRUFRPPLVVLRQRU
DQH[HFXWLYHRUDGPLQLVWUDWLYHRIILFHURUWULEXQDORUQRWDU\SXEOLFRUHYHQDSULYDWHERG\$P
-XUG6HF
,ELG6HF
$UQDXOWY3HFVRQ3KLO
7KXVDPRQJLWVSURYLVLRQVDUH
E'XULQJ7ULDO²
[[[[[[[[[
5LJKWVRI$FFXVHG²7KHDFFXVHGVKDOOEHHQWLWOHG
D7RFKDOOHQJHIRUFDXVHDQ\PHPEHURIWKHFRPPLVVLRQEDVHGRQDQ\RIWKHJURXQGVSURYLGHGLQ
WKH0DQXDOIRU&RXUWV0DUWLDO
E7RUHFHLYHFRS\RIWKHFKDUJHVDWOHDVWILYHGD\VLQDGYDQFHRIWKHGDWHRILQLWLDOKHDULQJ
F7REHSUHVHQWDWWKHDUUDLJQPHQWZKHQKHHQWHUVDSOHDRIJXLOW\DQGDWWKHSURQRXQFHPHQWRI
MXGJPHQWRIFRQYLFWLRQ:KHUHWKHDFFXVHGLVLQFXVWRG\RUFKDUJHGZLWKDFDSLWDORIIHQVHKHVKDOO
EHHQWLWOHGWREHSUHVHQWDWDOOVWDWHVRIWKHWULDO,QFDVHVZKHUHWKHUHLVDOOHJDWLRQRIFRQVSLUDF\DQG
RQHRUPRUHDFFXVHGDUHDYDLODEOHIRUWULDODQGRWKHUVDUHQRWWULDOPD\SURFHHGDJDLQVWDOO
SURYLGHGWKDWWKHLQGLFWPHQWVKDOOKDYHEHHQSXEOLVKHGDWOHDVWRQFHDZHHNIRUWZRFRQVHFXWLYH
ZHHNVLQDQ\QHZVSDSHUVRIJHQHUDOFLUFXODWLRQDQGDFRS\RIDQRWLFHRIWULDOVKDOOKDYHEHHQVHUYHG
RQWKHDFFXVHGRURQKLVQH[WRINLQRUDWKLVODVWNQRZQUHVLGHQFHRUEXVLQHVVDGGUHVVZLWKDSHUVRQ
RIVXIILFLHQWGLVFUHWLRQWRUHFHLYHWKHVDPH
G7REHUHSUHVHQWHGGXULQJWKHWULDOE\GHIHQVHFRXQVHODSSRLQWHGE\WKHFRQYHQLQJDXWKRULW\RU
FRXQVHORIKLVRZQFKRLFHLISUDFWLFDEOHRUWRFRQGXFWKLVRZQGHIHQVH,QWKHHYHQWWKDWKHLVDOORZHG
DFRXQVHORIKLVRZQFKRLFHKHPD\HOHFWWRUHWDLQRUH[FXVHWKHDSSRLQWHGGHIHQVHFRXQVHO
H7RWHVWLI\RQKLVRZQEHKDOIDQGSUHVHQWHYLGHQFHLQKLVGHIHQVHDQGFURVVH[DPLQHDQ\ZLWQHVV
ZKRSHUVRQDOO\DSSHDUVEHIRUHWKHFRPPLVVLRQ
I7RKDYHWKHVXEVWDQFHRIWKHFKDUJHVDQGVSHFLILFDWLRQVWKHSURFHHGLQJVDQGDQ\GRFXPHQWDU\
HYLGHQFHWUDQVODWHGZKHQKHLVXQDEOHWRXQGHUVWDQGWKHP
J7RKDYHDFRS\RIWKHUHFRUGRIWULDOZLWKLQDUHDVRQDEOHWLPHDIWHUWULDO
/DZ0HPEHU²7KHUXOLQJRIWKHODZPHPEHURQWKHDGPLVVLELOLW\RIHYLGHQFHDQGRQDOO
LQWHUORFXWRU\TXHVWLRQVLHDOOTXHVWLRQVRWKHUWKDQWKHILQGLQJVRIJXLOWRULQQRFHQFHDQGVHQWHQFH
RWKHUWKDQFKDOOHQJHVPRWLRQIRUDILQGLQJRIQRWJXLOW\RUVDQLW\RIWKHDFFXVHGVKDOOEHILQDO
(YLGHQFH²D7KHUXOHVVHWIRUWKLQWKH0DQXDOIRU&RXUWV0DUWLDOVKDOOQRUPDOO\EHDSSOLHG
:KHUHWKHVWULFWDSSOLFDWLRQRIVDLGUXOHVLVQRWIHDVLEOHWKH&RPPLVVLRQPD\PRGLI\WKHVDPH
FRQVLVWHQWZLWKWKHUHTXLUHPHQWVRIMXVWLFH,QVXFKHYHQWWKHFRPPLVVLRQVKRXOGDFFRUGWKHDFFXVHG
RUKLVFRXQVHODQGWKHWULDOFRXQVHOUHDVRQDEOHQRWLFHEHIRUHDSSO\LQJWKHPRGLILHGUXOHV1RWKLQJ
XQGHUWKLVUXOHVKRXOGKRZHYHUDOORZWKHFRPPLVVLRQWRDGPLWKHDUVD\HYLGHQFHQRUWRFRQYLFWWKH
DFFXVHGZLWKRXWSURRIEH\RQGUHDVRQDEOHGRXEW
7ULDO3URSHU3URFHGXUH²$IWHUWKHSHULRGIRUFKDOOHQJHVDQGWKHFRPPLVVLRQKDYLQJEHHQ
HPSDQHOOHGWKHWULDOVKDOOEHFRQGXFWHGVXEVWDQWLDOO\DVIROORZVXQOHVVPRGLILHGE\WKHFRPPLVVLRQ
SXUVXDQWWRDDERYH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
D(DFKFKDUJHDQGVSHFLILFDWLRQVKDOOEHUHDGRULWVVXEVWDQFHVWDWHGLQRSHQFRXUW
E7KHSUHVLGLQJPHPEHUVKDOODVNHDFKDFFXVHGZKHWKHUKHSOHDGV*XLOW\RUQRW*XLOW\$WWKLV
VWDJHWKHDFFXVHGPD\PRYHWRTXDVKWKHFKDUJHXQGHUWKHVDPHJURXQGVSURFHGXUHDQG
FRQGLWLRQVSUHVFULEHGLQWKH5HYLVHG5XOHVRI&RXUWRIWKH3KLOLSSLQHVH[FHSWWKDWWKHPRWLRQVKDOO
RQO\EHRUDO
F7KHSURVHFXWLRQVKDOOPDNHLWVRSHQLQJVWDWHPHQW
G7KHZLWQHVVHVDQGRWKHUHYLGHQFHIRUWKHSURVHFXWLRQVKDOOEHKHDUGRUSUHVHQWHG$WWKHFORVHRI
WKHFDVHIRUWKHSURVHFXWLRQWKHFRPPLVVLRQPD\RQPRWLRQRIWKHGHIHQVHIRUDILQGLQJRIQRW
JXLOW\FRQVLGHUDQGUXOHZKHWKHUWKHHYLGHQFHEHIRUHWKHFRPPLVVLRQVXSSRUWVWKHFKDUJHVDJDLQVW
WKHDFFXVHG7KHFRPPLVVLRQPD\JUDQWGHQ\RUGHIHUDFWLRQRQVXFKPRWLRQ
H7KHGHIHQVHPD\PDNHDQRSHQLQJVWDWHPHQWSULRUWRSUHVHQWLQJLWVFDVH
IKHZLWQHVVDQGRWKHUHYLGHQFHIRUWKHGHIHQVHVKDOOEHKHDUGRUSUHVHQWHG7KHUHDIWHUWKH
SURVHFXWLRQDQGGHIHQVHVKDOOLQWURGXFHHYLGHQFHLQUHEXWWDO
JKHSURVHFXWLRQDQGWKHUHDIWHUWKHGHIHQVHVKDOOGHOLYHUWKHLUUHVSHFWLYHVXPPDWLRQV
K7KHFRPPLVVLRQVKDOOWKHUHDIWHUFORVHDQGGHOLEHUDWHRQWKHILQGLQJVDQGVHQWHQFHDQGVKDOOQRW
DGMRXUQXQWLOLWKDVDUULYHGDWDQGDQQRXQFHGWKHILQGLQJVDQGVHQWHQFH
L0DQQHURI9RWLQJDQG1XPEHURI9RWHV5HTXLUHG²9RWLQJRQWKHILQGLQJVDQGVHQWHQFHVKDOOEH
E\VHFUHWZULWWHQEDOORW7KHPLQLPXPQXPEHURIYRWHVUHTXLUHGIRUDFRQYLFWLRQRUVHQWHQFHVKDOOEH
DVIROORZV
7RFRQYLFW
D)RUDQRIIHQVHFDUU\LQJDPDQGDWRU\GHDWKSHQDOW\²ILYHPHPEHUV
E)RURWKHURIIHQVHV²7ZRWKLUGVRIWKHPHPEHUVSUHVHQWDWWKHWLPHWKHYRWHLVWDNHQ
7RVHQWHQFH
D'HDWK²)LYHPHPEHUV
E2WKHUSHQDOW\²7ZRWKLUGVRIWKHPHPEHUVSUHVHQWDWWKHWLPHWKHYRWHLVWDNHQ
6HQWHQFH²7KHVHQWHQFHVKDOOEHFRPPHQVXUDWHZLWKWKHRIIHQVHFRPPLWWHG$PLOLWDU\
FRPPLVVLRQVKDOODSSO\WKHSHQDOWLHVSUHVFULEHGLQPDUWLDOODZRUGHUVRUGHFUHHVDQGLQWKHLU
DEVHQFHWKHSHQDOWLHVSUHVFULEHGE\DSSOLFDEOHODZV,QWKHDEVHQFHRIERWKWKHSHQDOWLHV
SUHVFULEHGE\WKH$UWLFOHVRI:DUDQG0DQXDOIRU&RXUWV0DUWLDOVKDOOEHWKHJXLGH&RQYLFWLRQ
DXWRPDWLFDOO\FDUULHVZLWKLWGLVPLVVDOIURPWKHVHUYLFHLIWKHDFFXVHGLVDFRPPLVVLRQHGRIILFHU
JRYHUQPHQWRIILFLDORUHPSOR\HHDQGGLVKRQRUDEOHGLVFKDUJHLIDQHQOLVWHGSHUVRQRIWKH$UPHG
)RUFHVRIWKH3KLOLSSLQHVXQOHVVRWKHUZLVHGHFUHHGLQWKHMXGJPHQW
5HFRUG²$PLOLWDU\FRPPLVVLRQLVDFRXUWRIUHFRUG$YHUEDWLPUHFRUGRILWVSURFHHGLQJVVKDOO
EHPDGH,WVKDOOEHSUHSDUHGE\WKHWULDOFRXQVHOXQGHUWKHGLUHFWLRQRIWKHFRPPLVVLRQ6XFK
UHFRUGFHUWLILHGE\WKHSUHVLGLQJPHPEHURIWKHFRPPLVVLRQRUKLVVXFFHVVRUVKDOOEHGHOLYHUHGRU
WUDQVPLWWHGWRWKHFRQYHQLQJDXWKRULW\DVVRRQDVSRVVLEOHDIWHUWULDO
&RQWHPSW²$PLOLWDU\FRPPLVVLRQPD\SXQLVKGLUHFWFRQWHPSWZLWKFRQILQHPHQWIRUQRWPRUH
WKDQRQHPRQWKDQGLQGLUHFWFRQWHPSWZLWKFRQILQHPHQWIRUDVORQJDVWKHSHUVRQIDLOVWRFRPSO\
RUREH\DODZIXORUGHURIWKHFRPPLVVLRQ
F$IWHU7ULDO²
$FWLRQE\&RQYHQLQJ$XWKRULW\²(YHU\UHFRUGRIWULDOE\PLOLWDU\FRPPLVVLRQVKDOOEHIRUZDUGHG
WRWKH&KLHIRI6WDII$UPHG)RUFHVRIWKH3KLOLSSLQHVIRUDFWLRQ,IWKHVHQWHQFHLPSRVHGE\WKH
PLOLWDU\FRPPLVVLRQLVGHDWKRULPSULVRQPHQWIRUWZHQW\\HDUVDQGRQHGD\RUPRUHWKH
&KLHIRI6WDII$UPHG)RUFHVRIWKH3KLOLSSLQHVVKDOOUHIHUWKHUHFRUGRIWULDOWRD%RDUGRI5HYLHZIRU
UHYLHZ)RUWKLVSXUSRVHKHVKDOOFRQVWLWXWHVXFK%RDUGVRI5HYLHZDVPD\EHQHFHVVDU\7KH%RDUG
RI5HYLHZVKDOOWUDQVPLWLWVRSLQLRQWRJHWKHUZLWKWKHUHFRUGRIWULDOWRWKH&KLHIRI6WDII$UPHG)RUFHV
RIWKH3KLOLSSLQHVIRUDFWLRQ
([HFXWLRQRI6HQWHQFH²([FHSWDVRWKHUZLVHKHUHLQSURYLGHGQRVHQWHQFHRIDPLOLWDU\
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
FRPPLVVLRQVKDOOEHH[HFXWHGXQOHVVWKHVDPHLVDSSURYHGDQGRUGHUHGH[HFXWHGE\WKH&KLHIRI
6WDII$UPHG)RUFHVRIWKH3KLOLSSLQHV:KHUHWKHVHQWHQFHLPSRVHGE\DPLOLWDU\FRPPLVVLRQLV
GHDWKRULIWKH&KLHIRI6WDIIUHFRPPHQGVWKDWDSHQDOW\RIGHDWKVKRXOGEHLPSRVHGLQDFDVHZKHUH
WKHVHQWHQFHLPSRVHGE\DPLOLWDU\FRPPLVVLRQLVOHVVWKDQGHDWKWKHUHFRUGRIWULDOVKDOOEH
IRUZDUGHGWRWKH3UHVLGHQWWKURXJKWKH6HFUHWDU\RI1DWLRQDO'HIHQVHIRUFRQILUPDWLRQRUDSSURYDO
1RVHQWHQFHRIGHDWKVKDOOEHH[HFXWHGXQOHVVRUGHUHGH[HFXWHGE\WKH3UHVLGHQW,QDQ\FDVHWKH
3UHVLGHQWVKDOOKDYHWKHSRZHUWRUHYHUVHFRQILUPLQFUHDVHWKHSHQDOW\LPSRVHGRURWKHUZLVHPRGLI\
DQ\GHFLVLRQRIWKHPLOLWDU\FRPPLVVLRQ3UHV'HFUHH1R5XOHV*RYHUQLQJWKH&UHDWLRQ
FRPSRVLWLRQ-XULVGLFWLRQ3URFHGXUHDQGRWKHUPDWWHUV5HOHYDQWWR0LOLWDU\7ULEXQDOV
$EUHUDY-XGJH0XxR]HWDO3KLO
6XSUD
6DQ'LHJRY+HUQDQGH]6&5$
/XQDY3ODQD6&5$FLWLQJ3HRSOHY2ODQGDJ3KLO
=DFDULDVY&UX]6&5$
%XVWRVY/XFHUR3KLO'HTXLWRY$UHOODQR3KLO$EUHUDY0XQR]3KLO
6XSUDSS
3HRSOHY&DUORV3KLO
/)HEUXDU\
3KLO
:LJPRUHRQ(YLGHQFHUG(G9RO9SSFLWHGLQ(ODJRY3HRSOHVXSUD
6WDWHY5HHG0RQW30DXUHUY3HRSOH1<1RHOOY&RPPRQZHDOWK
6(1(G
0LOHVY6WDWH,QG1(G'DYLGVRQY6WDWH$UN6:
7KRPDVY6WDWH0LVV6R6HH$/5G6HF$/5G6HF
6WDWHY0DQQLRQ8WDK3
*ORXVHUY8QLWHG6WDWHV)G&HUWGHQ/HGG
)UDQNY6WDWH*D6(7KRPDVY6WDWHVXSUD6WDWHY.HOO\1&6(
+LOOY6WDWH:LVF
2*/
3KLO
3KLO
86/HG
3KLO
3HRSOHY$YDQFHxDVXSUDS
/DVWVHQWHQFHRI$UWLFOH,96HFWLRQ&RQVWLWXWLRQ
$P-XUG6HFS
86Y*R/HQJ3KLO86Y6DUDELD3KLO0HGLQDY2UR]FR6&5$86
Y$QDVWDFLR3KLO86/DUDQMD3KLO3HRSOHY.DJXL0DODVXJL3KLO
2*
3'1RVXESDUE>@>G@$UWLFOH$:
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
,ELGVXESDUE>@>E@DQG>F@
,ELGVXESDUE>@>H@$UWLFOH$:
,ELGVXESDUE>@$UWLFOH$:
:LQWKURS
V0LOLWDU\/DZ9ROVDQG
([HFXWLYH2UGHU1R6HULHVRI
3'1RVXESDUE>@>D@$UWLFOH$:
3URPXOJDWHG6HSWHPEHUVHH6&5$
7KH0DUFKLVVXHRIWKH3/'7*UHDWHU0DQLOD7HOHSKRQH'LUHFWRU\FDUULHVOLVWLQJVRI-RVH
&UX]OLVWLQJVRI-RVH5H\HVDQGOLVWLQJVRI-RVH6DQWRV
)HUQDQGR-FRQFXUULQJDQGGLVVHQWLQJ
/6HSWHPEHU
/-DQXDU\
$FFRUGLQJWR$UWLFOH;9,,6HFWLRQSDURIWKH&RQVWLWXWLRQ$OOSURFODPDWLRQVRUGHUVGHFUHHV
LQVWUXFWLRQVDQGDFWVSURPXOJDWHGLVVXHGRUGRQHE\WKHLQFXPEHQW3UHVLGHQWVKDOOEHSDUWRIWKH
ODZRIWKHODQGDQGVKDOOUHPDLQYDOLGOHJDOELQGLQJDQGHIIHFWLYHHYHQDIWHUOLIWLQJRIPDUWLDOODZRU
WKHUDWLILFDWLRQRIWKLV&RQVWLWXWLRQXQOHVVPRGLILHGUHYRNHGRUVXSHUVHGHGE\VXEVHTXHQW
SURFODPDWLRQVRUGHUVGHFUHHVLQVWUXFWLRQVRURWKHUDFWVRIWKHLQFXPEHQW3UHVLGHQWRUXQOHVV
H[SUHVVO\DQGH[SOLFLWO\PRGLILHGRUUHSHDOHGE\WKHUHJXODUQDWLRQDO$VVHPEO\
86
6HFWLRQLELG
7KH3KLOLSSLQH$XWRQRP\$FW
$FFRUGLQJWR$UWLFOH9,,6HFWLRQSDURIWKH&RQVWLWXWLRQ7KH3UHVLGHQWVKDOOEH
FRPPDQGHULQFKLHIRIDOODUPHGIRUFHVRIWKH3KLOLSSLQHVDQGZKHQHYHULWEHFRPHVQHFHVVDU\KH
PD\FDOORXWVXFKDUPHGIRUFHVWRSUHYHQWRUVXSSUHVVODZOHVVYLROHQFHLQYDVLRQLQVXUUHFWLRQRU
UHEHOOLRQ,QFDVHRILQYDVLRQLQVXUUHFWLRQRUUHEHOOLRQRULPPLQHQWGDQJHUWKHUHRIZKHQWKHSXEOLF
VDIHW\UHTXLUHVLWKHPD\VXVSHQGWKHSULYLOHJHVRIWKHZULWRIKDEHDVFRUSXVRUSODFHWKH
3KLOLSSLQHVRUDQ\SDUWWKHUHRIXQGHUPDUWLDOODZ
86
86
,ELG
,ELG
,ELG
7ZR$PHULFDQFDVHVZHUHFLWHGLQVXSSRUWRIWKHYLHZWKDWGXHSURFHVVLVQRWQHFHVVDULO\MXGLFLDO
SURFHVV6LPRQY&UDIW86DQG%DOODUGY+XQWHU867KH
UHOHYDQFHLVQRWLPPHGLDWHO\DSSDUHQWHVSHFLDOO\VRDVWKHIRUPHUGHDOWZLWKWKHSURFHHGLQJVWDNHQ
LQFRQQHFWLRQZLWKDSHUVRQRIXQVRXQGPLQGDQGWKHODWWHUZLWKWKHDGPLQLVWUDWLYHSURFHVVIROORZHG
IRUWKHVDOHRISURSHUW\IRUQRQSD\PHQWRIOHY\WD[HV1RULVWKHUHIHUHQFHWRDVHFRQGDU\DXWKRULW\
$P-XUQGRIDQ\SDUWLFXODUZRUWK
6HH0DSSY2KLR86
0DOOR\Y+RJDQ86
*LGHRQY:DLQZULJKW86
.ORSIHUY1RUWK&DUROLQD86
,QUH2OLYHU86
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
3RLQWHUY7H[DV86
:DVKLQJWRQY7H[DV86
'XQFDQY/RXLVLDQD86
1RUWK&DUROLQDY3HDUVH/HGG
/$XJXVW6&5$
,ELG3HRSOHY0RQWRQLVUHSRUWHGLQ6&5$
*XWLHUUH]Y6DQWRV/0D\6&5$
3HWLWLRQHU
VPHPRUDQGXP
&IGHO&DVWLOORY-DYHOODQD/6HSW6&5$3HRSOHY*RPH]/
0D\6&5$$XVWULDY0DVDTXHO/$XJ6&5$3LPHQWHO
Y6DODQJD/6HSW6&5$=DOGLYDUY(VWHQ]R/0D\
6&5$/XTXHY.D\DQDQ
/$XJ6&5$3DUHGHVY*RSHQJFR/6HSW6&5$
*HRWLQDY*RQ]DOH]/6HSW6&5$7RELDVY(ULFWD$GP&DVH1R
--XO\6&5$0DWHR-UY9LOODOX]/00DUFK6&5$
8PDOLY9LOODOX]/0D\L6&5$3DODQJY=RVD/$XJ
6&5$
/3$XJ6&5$
,ELG
7HHKDQNHH-GLVVHQWLQJ
$TXLQR-UYV(QULOHDQGUHODWHGFDVHV6&5$6HSW
/ILOHGRQ-DQXDU\DQGGHHPHGVXEPLWWHGIRUUHVROXWLRQZLWKWKHILOLQJRQ0D\
RIWKHODVWSOHDGLQJSHWLWLRQHU
VVXUUHMRLQGHUDVUHTXLUHGE\WKH&RXUW
VUHVROXWLRQRI$SULO
VHHDOVRUHODWHGFDVHIRUKDEHDVFRUSXVDJDLQVWH[HFXWLRQRIGHDWKVHQWHQFH/
*XPDXDYV=DJDODHWDOILOHGRQ2FWDQGVXEPLWWHGIRUGHFLVLRQRQ-XO\
$VRIUHOHDVHRIWKH5HVROXWLRQRQ$SULOWKHRWKHUWZR-XVWLFHVRIWKHSUHVHQWPHPEHU
&RXUWQDPHO\WKH&KLHI-XVWLFHGLVTXDOLILHGDQG-XVWLFH0DNDVLDUDEURDGRQOHDYHKDYHQRWWDNHQ
SDUWV-XVWLFHV)HUQDQGRDQG3DOPDDQGWKHZULWHUYRWHGWRJUDQWWKHZLWKGUDZDO
$UWLFOH;6HFWLRQ&RQVWLWXWLRQ
*HQHUDO2UGHUV$DQG
(PSKDVLVVXSSOLHG
3DU3HWLWLRQHU
VXUJHQWPRWLRQRI0DUFK
3KLO
3UHVLGHQW
VVWDWHPHQWRQDQQRXQFLQJKLVSURFODPDWLRQRI0DUWLDO/DZ6HSW
$UWLFOH;VHFWLRQ&RQVWLWXWLRQ
:RUGVDQG3KUDVHV3HUP(G9ROS6HH/RSH]YV5R[DV6&5$
6FRW\
V'HSW6WRUHYV0LFDOOHU3KLO
$WSDJHV²$QVZHUWR6XSSOHPHQWDO3HWLWLRQ(PSKDVLVVXSSOLHG
86
,WV2UJDQLF$FWSULRUWR+DZDLL
VLQFRUSRUDWLRQDVDVWDWHRIWKH$PHULFDQ8QLRQFRQWDLQHGD
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
SURYLVLRQVLPLODUWRWKDWLQRXU&RQVWLWXWLRQIRUWKHGHFODUDWLRQRIPDUWLDOODZLQFDVHRILQYDVLRQ
LQVXUUHFWLRQRUUHEHOOLRQRULPPLQHQWGDQJHUWKHUHRIZKHQWKHSXEOLFVDIHW\UHTXLUHVLW
86
3KLOLSSLQH'DLO\([SUHVV-DQSDJH
&KLHI-XVWLFH(DUO:DUUHQ7KH%LOORI5LJKWVDQGWKH&RQVWLWXWLRQ1<8/DZ5HYLHZ
5HVSRQGHQWV
PHPRUDQGXPSS
6DQWRV0DUWLDO/DZQGHGSSFLWLQJ:LQWKURSS)DLUPDQS:LHQHUS
6(&1RSHUVRQVKDOOEHFRPSHOOHGWREHDZLWQHVVDJDLQVWKLPVHOI$Q\SHUVRQXQGHU
LQYHVWLJDWLRQIRUWKHFRPPLVVLRQRIDQRIIHQVHVKDOOKDYHWKHULJKWWRUHPDLQVLOHQWDQGWRFRXQVHO
DQGWREHLQIRUPHGRIVXFKULJKW1RIRUFHYLROHQFHWKUHDWLQWLPLGDWLRQRUDQ\RWKHUPHDQVZKLFK
YLWLDWHVWKHIUHHZLOOVKDOOEHXVHGDJDLQVWKLP$Q\FRQIHVVLRQREWDLQHGLQYLRODWLRQRIWKLVVHFWLRQ
VKDOOEHLQDGPLVVLEOHLQHYLGHQFH$UWLFOH,9
7KLVVHFWLRQH[SUHVVO\SURYLGHVWKDW1RSURVHFXWLRQXQGHUWKLV$FWVKDOOEHPDGHZLWKRXWD
SURSHUSUHOLPLQDU\LQYHVWLJDWLRQWKHUHRIZLWKQRWLFHWRWKHSDUW\FRQFHUQHGZKRVKDOOKDYHWKH
ULJKWWREHUHSUHVHQWHGE\FRXQVHOWRKDYHFRPSXOVRU\SURFHVVIRUREWDLQLQJZLWQHVVHVLQKLVIDYRU
DQGWRFURVVH[DPLQHZLWQHVVHVDJDLQVWKLP
%ULJ*HQ*66DQWRV$)3-$*2&KLHI3KLO'DLO\([SUHVV$SULOS
$UW;VHFRIWKH&RQVWLWXWLRQ5XOHVHFL
$UW,9VHH&RQVWLWXWLRQ
)HUQDQGR
V%LOORI5LJKWVHGS6HH,QUH3HWLWLRQRI.D\9LOOHJDV.DPL6&5$
3KLO'DLO\([SUHVV'HFHPEHU
,GHP$SULO
7KHSHUWLQHQWWH[WDVUHSRUWHGLQ0DQLOD7LPHV$XJ$QQH[$SHWLWLRQUHDGV
4²,QWKHOLJKWRIDOOWKLV0U3UHVLGHQWGR\RXFRQWHPSODWHDQ\SDUWLFXODUDFWLRQRQ0U$TXLQR
DQGVRPHRWKHURIILFLDOVZKLFK\RXKDYHDOVRPHQWLRQHG"
7KH3UHVLGHQW²:HOO,KDYHEHHQDVNHGWKHTXHVWLRQWKHQZK\GLG\RXQRWRUGHUWKHDUUHVWRI
6HQDWRU$TXLQR"$QGP\DQVZHUZDVKHKDVDOZD\VFODLPHGWKDWKHLVRQHRIWKHOHDGHUVRIWKH
2SSRVLWLRQDQG,KDYHHUUHGRQWKHVLGHRIJHQHURVLW\DVZHOODVRIOLEHUDOLW\KRSLQJWKDWJRRGVHQVH
PD\VRPHGD\FDWFKXSZLWKKLP7KDWLVZK\,KDYHQRWDFWHG,GRQRWNQRZZKDWZLOOKDSSHQODWHU
RQEHFDXVHRIFRXUVHWKHPLOLWDU\LQVLVWWKDWZHPXVWQRWPDNHDQ\H[FHSWLRQVWRWKHJHQHUDOUXOH
4²0U3UHVLGHQWLVWKHHYLGHQFHDJDLQVWWKHVHQDWRUVWURQJHQRXJKWRIRUFRQYLFWLRQ"
7KH3UHVLGHQW²,EHOLHYHVR,KDYHQRWLQFOXGHGVRPHRIWKHHYLGHQFHEXWHYHQZLWKZKDWZH
KDYHDQGWKHWHVWLPRQLHVRIVRPHRIWKRVHZKRP,KDYHSUHVHQWHGWR\RXDVZHOODVWKRVHZKRDUH
LQWKHFXVWRG\RIWKHJRYHUQPHQW,EHOLHYHWKDWWKHHYLGHQFHLVQRWRQO\VWURQJLWLVRYHUZKHOPLQJ
4²7KHQ0U3UHVLGHQWLIWKLVLVWKHFDVHXQGHU\RXUVXVSHQVLRQRIWKHZULWRIKDEHDVFRUSXVDUH
\RXHPSRZHUHGWRFDOOWKH$UPHG)RUFHVWRDUUHVWWKHVHQDWRU"
7KH3UHVLGHQW²<HV,DPWKDW,DPHPSRZHUHG\HVHYHQEHIRUHWKHVXVSHQVLRQRIWKHSULYLOHJH
RIWKHZULWRIKDEHDVFRUSXV%XWQRZKHLVWKHRQO\VHQDWRUWKHRSSRVLWLRQVHQDWRUOHIWLQWKH6HQDWH
*HRWLQDYV*RQ]DOHV6&5$SHU&DVWUR-
/XTXHYV.D\DQDQ6&5$SHU6DQFKH]-
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
3KLO
0DQLOD7LPHV$XJ$QQH[$SHWLWLRQ
3DU8UJHQW0RWLRQRI0DUFK3HWLWLRQHU
VPHPRUDQGXPRI0DUFKS
$WSDJHKHUHRI
6XSUDDWSDJHKHUHRI
5HVSRQGHQWV
5HSO\WRSHWLWLRQHU
V0DQLIHVWDWLRQGDWHG$SULO
3HRSOHYV)UDQFLVFR3KLO
$UW,9VHFWLRQ%LOORI5LJKWV
7KLVTXRWHGZDLYHUSURYLVRLVLGHQWLFDOO\SURYLGHGIRULQ5XOHVHF
5XOHVHHSURYLGHVWKDWVXFK
SUHVXPSWLRQVDUHVDWLVIDFWRU\LIXQFRQWUDGLFWHGEXWPD\EH
FRQWUDGLFWHGDQGRYHUFRPHE\RWKHUHYLGHQFH
5XOHVHFSDUZ
3KLO
,GHPDWS
6HFWLRQ5LJKWVRIGHIHQGDQWDWWKHWULDO,QDOOFULPLQDOSURVHFXWLRQVWKHGHIHQGDQWVKDOOEH
HQWLWOHGI7REHFRQIURQWHGDWWKHWULDOE\DQGWRFURVVH[DPLQHWKHZLWQHVVDJDLQVWKLP:KHUH
WKHWHVWLPRQ\RIDZLWQHVVIRUWKHSURVHFXWLRQKDVSUHYLRXVO\EHHQWDNHQGRZQE\TXHVWLRQDQG
DQVZHULQWKHSUHVHQFHRIWKHGHIHQGDQWRUKLVDWWRUQH\WKHGHIHQVHKDYLQJKDGDQRSSRUWXQLW\WR
FURVVH[DPLQHWKHZLWQHVVWKHWHVWLPRQ\RUGHSRVLWLRQRIWKHODWWHUPD\EHUHDGXSRQVDWLVIDFWRU\
SURRIWRWKHFRXUWWKDWKHLVGHDGRULQFDSDFLWDWHGWRWHVWLI\RUFDQQRWZLWKGXHGLOLJHQFHEHIRXQGLQ
WKH3KLOLSSLQHV
3KLODWSHPSKDVLVVXSSOLHG7KHDFFXVHGDQGFRXQVHOLQWKLVFDVHKDGUHIXVHGWRWDNH
SDUWLQWKHSHUSHWXDWLRQSURFHHGLQJVFODLPLQJODFNRIUHDVRQDEOHQRWLFHDQGKDGDEDQGRQHGWKH
VHVVLRQKDOO
$SULOWVQSQRWHVLQSDUHQWKHVHVVXSSOLHG
$SULOWVQS
0DUFKWVQS
%XOOHWLQ7RGD\$SULO
3KLO([SUHVV$SULO
$SULOWVQS
$UWVHF&RQVWLWXWLRQ
6ROLFLWRU*HQHUDO
VPHPRUDQGXPSS
%ULJ*HQ*XLOOHUPR66DQWRV$)3-$*2&KLHI3KLO'DLO\([SUHVV$SULOS
6XSUDIQ
6ROLFLWRU*HQHUDO
VPHPRUDQGXPDWS
$OOSURFODPDWLRQVRUGHUVGHFUHHVLQVWUXFWLRQVDQGDFWVSURPXOJDWHGLVVXHGRUGRQHE\WKH
HQFXPEHQW3UHVLGHQWVKDOOEHSDUWRIWKHODZRIWKHODQGDQGVKDOOUHPDLQYDOLGOHJDOELQGLQJDQG
HIIHFWLYHHYHQDIWHUOLIWLQJRIPDUWLDOODZRUWKHUDWLILFDWLRQRIWKLV&RQVWLWXWLRQXQOHVVPRGLILHG
UHYRNHGRUVXSHUVHGHGE\VXEVHTXHQWSURFODPDWLRQVRUGHUVGHFUHHVLQVWUXFWLRQVRURWKHUDFWVRI
WKHLQFXPEHQW3UHVLGHQWRUXQOHVVH[SUHVVO\DQGH[SOLFLWO\PRGLILHGRUUHSHDOHGE\WKHUHJXODU
1DWLRQDO$VVHPEO\$UW69,,VHH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
7KHFRPPDQGHULQFKLHIFODXVHLQERWK&RQVWLWXWLRQVLVLGHQWLFDODQGUHDGV6(&7KH3ULPH
0LQLVWHU>3UHVLGHQW@VKDOOEHFRPPDQGHULQFKLHIRIDOODUPHGIRUFHVRIWKH3KLOLSSLQHVDQG
ZKHQHYHULWEHFRPHVQHFHVVDU\KHPD\FDOORXWVXFKDUPHGIRUFHVWRSUHYHQWRUVXSSUHVVODZOHVV
YLROHQFHLQYDVLRQLQVXUUHFWLRQRUUHEHOOLRQRULPPLQHQWGDQJHUWKHUHRIZKHQWKHSXEOLFVDIHW\
UHTXLUHVLWKHPD\VXVSHQGWKHSULYLOHJHRIWKHZULWRIKDEHDVFRUSXVRUSODFHWKH3KLOLSSLQHVRUDQ\
SDUWWKHUHRIXQGHUPDUWLDOODZ$UW,;VHH&RQVWLWXWLRQDQG$UW9,,VHF
&RQVWLWXWLRQ
6&5$FLWLQJ6WHUOLQJYV&RQVWDQWLQ86
$TXLQR-UYV(QULOHHWF6&5$
3KLO'DLO\([SUHVV6HSW
6HHZULWHU
VVHSDUDWHRSLQLRQVLQ$TXLQR-UYV&RPHOHF/-DQDQGLQ*RQ]DOH]
YV&RPHOHF/)HE
6HFRIWKH7UDQVLWRU\3URYLVLRQVDERYHTXRWHGUHFRJQL]HVWKHSRZHURIWKH6XSUHPH&RXUWRU
WKH1DWLRQDO$VVHPEO\WRDPHQGPRGLI\RUUHSHDOWKH5XOHVRI&RXUW
&RO6WHIDQL&'RPLQJRDSSRLQWHG0DUFKDQG&DSW%HQMDPLQ()DFWRDSSRLQWHG
0DUFK0DUFKWVQSS
0DUFKWVQS5XOHVHFLPSRVLQJILYHUHTXLUHPHQWV
0DUFKWVQSSHPSKDVLVVXSSOLHG
$UW;VHF&RQVWLWXWLRQ
7KRPDV-HIIHUVRQFRQWHQGHGLQXUJLQJWKDWWKHQHZ86&RQVWLWXWLRQVKRXOGLQFOXGHDELOORI
ULJKWV
,KDYHDULJKWWRQRWKLQJZKLFKDQRWKHUKDVDULJKWWRWDNHDZD\/HWPHDGGWKDWDELOORI
ULJKWVLVZKDWWKHSHRSOHDUHHQWLWOHGWRDJDLQVWHYHU\JRYHUQPHQWRQHDUWKDQGZKDWQRMXVW
JRYHUQPHQWVKRXOGUHIXVH
3UHVLGHQW0DUFRV'HPRFUDF\DOLYLQJLGHRORJ\GHOLYHUHG0D\EHIRUHWKH83$OXPQL
$VV
Q7LPHV-RXUQDOLVVXHRI0D\
3UHVLGHQW0DUFRV)RUHZRUG1RWHVRQWKH1HZ6RFLHW\SYL
3UHV0DUFRV6HSWVDWHOOLWHZRUOGSUHVV&RQIHUHQFH3KLO'DLO\([SUHVVLVVXHRI6HSW
3UHV0DUFRVDWVDWHOOLWHZRUOGSUHVVFRQIHUHQFHRI6HSW,LQVLVWHGWKDWQRWRQO\
LQGLYLGXDOVEXWDOVRZHRXUVHOYHVLQJRYHUQPHQWDQGWKHPLOLWDU\EHJXLGHGE\D&RQVWLWXWLRQDQGWKDW
&RQVWLWXWLRQEHUHVSHFWHG7KLVZDVRQHRIWKHDJUHHPHQWVZLWKWKRVHZLWKZKRP,PHWEHIRUHZH
DJUHHGWRSURFODLPPDUWLDOODZDQGWKDWLVWKDWZHZRXOGIROORZWKH&RQVWLWXWLRQDQGQRWHVWDEOLVKD
UHYROXWLRQDU\IRUPRIJRYHUQPHQWDQGVWDUWILJKWLQJDOORYHUWKHFRXQWU\VLGHDJDLQ3KLO'DLO\
([SUHVVLVVXHRI6HSWHPEHU
3UHV0DUFRV
DGGUHVVRQREVHUYDQFHRIWKHILUVWDQQLYHUVDU\RIWKH&RQVWLWXWLRQRQ-DQ
3KLO/DERU5HODWLRQV-RXUQDO9RO9,,-DQSHPSKDVLVVXSSOLHG
6&5$HPSKDVLVFRSLHG
$PHULFDQ&RPYV'RXGV86
-XVWLFH&DUGRVR1DWXUHRI-XGLFLDO3URFHVV7DxDGDDQG)HUQDQGR&RQVWLWXWLRQRIWKH
3KLOLSSLQHVHG
:HVW9LUJLQLD6WDWH%RDUGRI(GXFDWLRQYV%DUQHWWH86
/DVNL7KH6WDWHLQ7KHRU\DQG3UDFWLFH
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO
*51R/
,QWKHODWHVWFDVHRI0DJWRWRY0DQJXHUDHWF/0DUFK0U-XVWLFH&DVWURLQKLV
GLVVHQWLQJRSLQLRQSDUDSKUDVHG-XVWLFH'RXJODV
DGPRQLWLRQWKXVWKHULJKWVRIQRQHDUHVDIHXQOHVV
WKHULJKWVRIDOODUHSURWHFWHGHYHQLIZHVKRXOGVHQVHQRGDQJHUWRRXURZQULJKWVEHFDXVHZH
EHORQJWRDJURXSWKDWLVLQIRUPHGLPSRUWDQWDQGUHVSHFWHGZHPXVWDOZD\VUHFRJQL]HWKDWDQ\
FRGHRIIDLUSOD\LVDOVRDFRGHIRUWKHOHVVIRUWXQDWH
%DUUHGR-FRQFXUULQJ
,QIUD
$TXLQRHWDOYV+RQ-XDQ3RQFH(QULOHHWDO*51R/DQGLWVVLVWHUFDVHVDOO
SURPXOJDWHGRQ6HSWHPEHU
LG
2*
7KH/DZSKLO3URMHFW$UHOODQR/DZ)RXQGDWLRQ
KWWSZZZODZSKLOQHWMXGMXULVMXULPD\JUBBKWPO