T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON U N I TED STA TES C O U R T O F A PPEA LS F O R T H E N IN T H C IR C U IT QUANT UM T E CHNOL OGY P A R T N E R S II , L . P . , a D el aw are l i m i te d p a r t n e r s h ip , P la in tif

f - A p p e llan t, v. AL T MAN B RO W NI NG AN D C O M PA N Y , a n O r e g o n c o r po r a t i o n; BA K ER G R O U P LLP; K A Y E. A L T M A N , an i n d i vi d u al ; M I C H A E L J. B AK E R, a n i n d i v i d u a l ; DA V I D M. B R O W N I N G , a n in d iv id u a l; D O E S , 1 t hr o ug h 2 0 ; APEX DR I VE L A B O R A T O R I E S , I N C . , n om i n al d e f e n d an t , a D e l aw ar e c or p or at i on , D efen d an t s - A p p el l ees. N o. 10- 35162 D . C. N o . 3 : 0 8 - c v - 0 0 3 7 6 - BR ME MORA ND UM *

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P ort l and, O r e gon B ef ore: KOZ I NS KI , C h ie f Ju d g e , T A S H I MA and I K U TA , C i rcu i tJu d g es.



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1. T h e r e is c o m p le te d iv e r s ityb e tw e e n th e p artie s . S e e J o h n s o n v . C o lu m b ia P rops. A ncho ra ge, L P , 43 7 F . 3d 89 4, 89 9 (9th C i r. 20 06 ). 2. W hi l e the by l aw s of

aD e l aw ar e c orpor a t i on “ ar e ac ontr a c tbe tw e e n the c orpor a t i on and i t s s t oc khol de r s , ” K i ds c o I nc . v. D i ns m or e , 674 A . 2d 483, 492 ( D e l . 1995) , Q uantum di dn’ tc i t e anyauthor i tyhol di ng tha ts har e hol de r s c an s ue e a c h o th e rf

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s u c h b y law s . W e c o n c lu d e th e yc an n o t. 3. Q uantum di dn’ ta l l e ge f a c t s s how i ng tha tthe r e pr e s e nt a t i ons about A l tm an B r ow ni ng & C om pany( A B C o) ’ s c apabi l i t i e s w e r e f a l s e orm i s l e a di ng w hen B row ni ng and B akerm ade them t o D i ckm an. S ee Y ou ri sh v. C al . A m pl i fi er , 19 1 F . 3d 98 3, 99 3 (9th C i r. 19 99 ). T he fa l si ty of the st at em ent s c an’ tbe i nferre d fr om A B C o’ s f

ai l ure t o m ee tthe m i l es t on es i n the agree m entw i th A pex. S ee C om m c ’ ns G rp. , I nc . v. G T E M obi l ne tof O r . , 871 P . 2d 502, 504 ( O r . C t . A pp. 19 94 ); se e a l so In re G l enF ed, Inc. S ec . L i t i g. , 42 F . 3d 15 41 , 15 48 –4 9 (9th C i r. 19 94 ) ( en banc). 4 . D i ckm an’ s e m ai l t o A pex’ s l ar gestshar ehol der, w hi ch predi ct ed that Q uantum ’ s s ui tw oul d m a ke “ A pe x’ s and pos s i bl y[ the s har e hol de r ’ s ] f und r a i s i ng s om e w ha tr a di oa c t i ve , ” c aus i ng A pe x nott o “ s urvi ve [ ] ” f orve ryl ong, i s s tr ongpage 3

evi dence thatQ uantum ’ s i nt er es t s di verged from tho se of A pex’ s other s har e hol de r s . S e e E m e r a l d P artne r s v. B e r l i n, 564 A . 2d 670, 673–74 ( D e l . C h. 1 9 8 9 ). T h e d istrict co u rt d idn ’tab u se it s d iscr etio n infin d in g th at Q u an tu m w as n ’t an a de qua t e s har e hol de rr e pr e s e nt a t i ve . S e e F e d. R . C i v. P . 23. 1. 5. Q u an tu m ca n ’tclaim d em an dfu ti li ty b ec au se itm ad e d em an do n A p ex ’s b o ar do f d ir e c to r s . S e e S p ie g e l v . B u n tr o c k , 5 7 1 A .2 d7 6 7 , 7 7 5 ( D e l. 1 9 9 0 ) . A p e x ’s S p e c ia l I n v e s tig a tio n C o m m itte e ( S I C ) , w h ic h h a d“s o le au th o r ity ” to i nve s t i ga t e Q uantum ’ s a l l e ga t i ons , c onc l ude d tha tthe “ ul t i m a t e out c om e ” of the chal l enged b oard act i on s “ w as fa i r t o [A pex] , ” and that“ the di vers i on of re source s to p u r s u e litig a tio n . . . w o u lds u r e lyc r ip p le [ A p e x ].” ( E m p h a s is a d d e d .) T h is concl usi on i sn’ tsubj ec tt o j ud i ci alre vi ew , i d. at77 8, and Q uantum hasn’ tal l eged f a c t s i n d i c a t i n g th a tth e SI C’ s i n v e s t i g a t i o n w a s d e f i c i e n t , s e e G r i me s v . D SC C om m c ’ ns C orp. , 724 A . 2d 561, 565 ( D e l . C h. 1998) ; s e e a l s o L e vi ne v. S m i th, 591 A . 2d 194, 214 ( D e l . 1991) , ove rrul e d on othe rgr ounds byB r e hm v. E i s ne r , 746 A . 2d 24 4, 25 3– 54 (D el . 20 00 ). AF F I RME D.