Court Opinion

ID: 2970057
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:03:13.918634+00
Date Added: 2024-06-11T15:01:28.338684
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
                3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

        (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                    )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6
                   )257+(6,;7+&,5&8,7
                     BBBBBBBBBBBBBBBBB

 9,25(/ ),(5$1                  ;
                                  
                          3HWLWLRQHU
                                  
                                    1R
            Y                    
                                   !
                                  
 ,00,*5$7,21 $1'                  
 1$785$/,=$7,21 6(59,&(          
 s2+1 $6+&52)7$WWRUQH\          
 *HQHUDO                         
                  5HVSRQGHQWV 
                                  
                                 1
    2Q3HWLWLRQIRU5HYLHZRIDQ2UGHURIWKH%RDUGRI
                   ,PPLJUDWLRQ$SSHDOV
                    1R$
                       $UJXHG0D\
              'HFLGHGDQG)LOHG2FWREHU
          %HIRUH1255,6DQG&2/(&LUFXLWsXGJHV
                 +2/6&+8+'LVWULFWsXGJH

    
     7KH +RQRUDEOH sRKQ ' +ROVFKXK 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

                                    
     )LHUDQY,16                                 1R

                      BBBBBBBBBBBBBBBBB
                          &2816(/
$5*8('  sRHO $ 3HUOPXWWHU &OHYHODQG 2KLR IRU
3HWLWLRQHU3DWULFN6KHQ81,7('67$7(6'(3$570(17
2)s867,&(2)),&(2),00,*5$7,21/,7,*$7,21
:DVKLQJWRQ'&IRU5HVSRQGHQWV21%5,()sRHO$
3HUOPXWWHU&OHYHODQG2KLRIRU3HWLWLRQHU&DUO+0F,QW\UH
sUsRKQ/'DYLV81,7('67$7(6'(3$570(172)
s867,&( 2)),&( 2) ,00,*5$7,21 /,7,*$7,21
:DVKLQJWRQ'&IRU5HVSRQGHQWV
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
  $/$1(1255,6&LUFXLWsXGJH3HWLWLRQHU9LRUHO)LHUDQ
FKDOOHQJHVDILQDORUGHURIWKH%RDUGRI,PPLJUDWLRQ$SSHDOV
%,$GHQ\LQJKLVPRWLRQWRUHPDQGDQGUHRSHQGHSRUWDWLRQ
SURFHHGLQJVIRUWKHSXUSRVHRIDSSO\LQJIRUFDQFHOODWLRQRI
UHPRYDO:HDIILUPWKH%,$GHFLVLRQ
          ,)DFWXDODQG3URFHGXUDO%DFNJURXQG
  )LHUDQ LV D FLWL]HQ RI 5RPDQLD ZKR HQWHUHG WKH 8QLWHG
6WDWHV DV D VWRZDZD\ LQ 0D\   +H ZDV WDNHQ LQWR
FXVWRG\E\WKH,PPLJUDWLRQDQG1DWXUDOL]DWLRQ6HUYLFH,16
DQGZDVSDUROHGLQWRWKH8QLWHG6WDWHVPHDQLQJWKDWKHZDV
UHOHDVHG EXW QRW mODZIXOO\ DGPLWWHGl  +H DSSOLHG IRU
SROLWLFDODV\OXPEXWLQWKH,16LVVXHGDQRWLFHRILQWHQW
WR GHQ\ DV\OXP  2Q 0D\   KH ZDV SODFHG LQ
H[FOXVLRQ SURFHHGLQJV EHIRUH DQ LPPLJUDWLRQ MXGJH  $W D
KHDULQJRQ'HFHPEHU)LHUDQDGPLWWHGWKDWKHZDV
H[FOXGDEOH DQG UHTXHVWHG DV\OXP DQG ZLWKKROGLQJ RI
GHSRUWDWLRQ2Q$SULODWDKHDULQJRQWKHPHULWV
WKHLPPLJUDWLRQ MXGJHGHQLHGWKHDSSOLFDWLRQVDQGRUGHUHG
WKDW)LHUDQEHH[FOXGHGDQGGHSRUWHG7KHMXGJHGHFLGHGWKDW
)LHUDQ KDG IDLOHG WR HVWDEOLVK SDVW SHUVHFXWLRQ RU D ZHOO
IRXQGHG IHDU RU FOHDU SUREDELOLW\ RI IXWXUH SHUVHFXWLRQ LQ
   )LHUDQY,16                              1R      1R                                       )LHUDQY,16          

  *LYHQWKHXQDYDLODELOLW\RIIUHOLHIWR)LHUDQWKHUH   5RPDQLDDVUHTXLUHGIRUDV\OXPRUZLWKKROGLQJRIH[FOXVLRQ
ZDVQRDEXVHRIGLVFUHWLRQLQGHQ\LQJKLVPRWLRQWRUHPDQG       DQGGHSRUWDWLRQ
KLVFDVH
                                                                   )LHUDQDSSHDOHGWRWKH%,$:KLOHWKHDSSHDOZDVSHQGLQJ
                      ,9&RQFOXVLRQ                            &RQJUHVVHQDFWHGDQHZODZFDOOHGWKH,OOHJDO,PPLJUDWLRQ
                                                                 5HIRUPDQG,PPLJUDQW5HVSRQVLELOLW\$FW3XE/
  )RUWKHIRUHJRLQJUHDVRQVZHDIILUPWKH%,$jVGHFLVLRQ        6WDW,,5,5$ZKLFKLQVWLWXWHG
DQGOLIWWKHVWD\RIUHPRYDO                                    DPRUHUHVWULFWLYHVFKHPHGHVLJQHGWRH[SHGLWHWKHUHPRYDORI
                                                                 XQODZIXO DOLHQV DQG WR OLPLW WKHLU DELOLW\ WR REWDLQ
                                                                 GLVFUHWLRQDU\UHOLHI$VKNLY,16)GWK&LU
                                                                   0RVW RI WKH ,,5,5$ FKDQJHV ZHQW LQWR HIIHFW RQ
                                                                 $SULODQGZHUHQRWUHWURDFWLYH,,5,5$D
                                                                 F7KHUHZHUHKRZHYHUVHYHUDOmWUDQVLWLRQDOUXOHVlWKDW
                                                                 DSSOLHGWRSURFHHGLQJVEHJXQEHIRUHWKHHIIHFWLYHGDWHRIWKH
                                                                 DFW6HHHJ,,5,5$F$
                                                                    2Q1RYHPEHU&RQJUHVVDJDLQFKDQJHGWKHODZ
                                                                 ZLWKWKHHQDFWPHQWRIWKH1LFDUDJXDQ$GMXVWPHQWDQG&HQWUDO
                                                                 $PHULFDQ5HOLHI$FW3XE/1R6WDW
                                                                   1$&$5$  7KH DFW HDVHG WKH VWULFW
                                                                 UHTXLUHPHQWV RI WKH ,,5,5$ IRU FHUWDLQ DOLHQV LQFOXGLQJ
                                                                 TXDOLILHG 5RPDQLDQV E\ DSSO\LQJ WKH OHVV VWULQJHQW SUH
                                                                 ,,5,5$UHTXLUHPHQWV6HH1$&$5$DE$WLVVXH
                                                                 LQWKLVFDVHLVD1$&$5$DPHQGPHQWRQWKHFDQFHOODWLRQRI
                                                                 UHPRYDOnEZKLFKLQVHUWHGILQWKH,,5,5$

                                                                    
                                                                     ,Q UHOHYDQW SDUW WKH VWDWXWH UHDGV

                                                                    I 63(&,$/ 58/( )25 &$1&(//$7,21 2) 5(029$/
                                                                    n
                                                                          ,1 *(1(5$/ n 6XEMHFW WR WKH SURYLVLRQV RI WKH
                                                                         ,PPLJUDWLRQ DQG 1DWLRQDOLW\ $FW DV LQ HIIHFW DIWHU WKH WLWOH
                                                                         ,,,$ HIIHFWLYH GDWH RWKHU WKDQ VXEVHFWLRQV E G
                                                                         DQG H RI VHFWLRQ $ RI VXFK $FW EXW LQFOXGLQJ VHFWLRQ
                                                                         D% RI VXFK $FW WKH $WWRUQH\ *HQHUDO PD\ XQGHU
                                                                         VHFWLRQ $ RI VXFK $FW FDQFHO UHPRYDO RI DQG DGMXVW WR
                                                                         WKH VWDWXV RI DQ DOLHQ ODZIXOO\ DGPLWWHG IRU SHUPDQHQW
                                                                         UHVLGHQFH DQ DOLHQ ZKR LV LQDGPLVVLEOH RU GHSRUWDEOH IURP
                                                                         WKH 8QLWHG 6WDWHV LI WKH DOLHQ DSSOLHV IRU VXFK UHOLHI WKH
                                                                         DOLHQ LV GHVFULEHG LQ VXEVHFWLRQ F&L RI WKLV VHFWLRQ
                                                                         DQG n
                                                                              $ WKH DOLHQ n
      )LHUDQY,16                                       1R    1R                                     )LHUDQY,16        

)LHUDQ UHDG WKLV QHZ SURYLVLRQ DV DSSO\LQJ WR KLP DQG KH       QDWLRQDOLWLHVIURPWKHUHWURDFWLYHDSSOLFDWLRQRIWKHµVWRSWLPHj
ILOHGDPRWLRQWRUHPDQGKLVFDVHWRWKHLPPLJUDWLRQMXGJHIRU            UXOHl 7UHLPDQQ  :/  DW 
 GLVFXVVLQJ LQ
FRQVLGHUDWLRQRIKLVDSSOLFDWLRQIRUVXVSHQVLRQRIGHSRUWDWLRQ            GLFWD KRZ 1$&$5$  D RQ WLPH FDOFXODWLRQ FRXOG
RUFDQFHOODWLRQRIUHPRYDOXQGHUWKHQHZODZ                             UHQGHU VRPH DOLHQV HOLJLEOH IRU VXVSHQVLRQ RI GHSRUWDWLRQ
                                                                          6HFWLRQJRIWKH,,5,5$FDQIXQFWLRQIRUWKHVHDOLHQVE\
  2Q)HEUXDU\WKH%,$DGRSWHGWKHGHFLVLRQRIWKH               DOORZLQJWKHPWRUHRSHQGHSRUWDWLRQRUUHPRYDOSURFHHGLQJV
LPPLJUDWLRQMXGJHDQGGHQLHG)LHUDQjVPRWLRQWRUHPDQGWKH                DQGGHQLDORI)LHUDQjVFODLPZLOOQRWUHQGHU,,5,5$J
FDVHIRUDKHDULQJ,QGHQ\LQJ)LHUDQjVPRWLRQIRUDUHPDQG             PHDQLQJOHVV
WKH%,$H[SODLQHG
                                                                            2WKHUFRXUWVKDYHUHDFKHGWKHFRQFOXVLRQWKDWWKHROGODZ
    :H ILQG WKDW ZH PXVW GHQ\ WKH DSSOLFDQWjV PRWLRQ              DSSOLHV WR WKRVH DOLHQV SODFHG LQ H[FOXVLRQ RU GHSRUWDWLRQ
    EHFDXVHDVWKHDSSOLFDQWLVLQH[FOXVLRQSURFHHGLQJVKH             SURFHHGLQJVEHIRUH$SULO,Q3DWHOY0F(OUR\
    LVVWDWXWRULO\LQHOLJLEOHIRUVXVSHQVLRQRIGHSRUWDWLRQ6HH         )GG&LUWKH&RXUWRI$SSHDOVIRUWKH6HFRQG
    0DWWHURI7RUUHV,	1'HF%,$$V                &LUFXLW FRQVLGHUHG WKH FDVH RI DQ DOLHQ ZKR ZDV SODFHG LQ
    VXFK KH GRHV QRW TXDOLI\ IRU WKH UHFHQWO\HQDFWHG             H[FOXVLRQ SURFHHGLQJV LQ  DQG ZKR DSSOLHG IRU
    SURYLVLRQVRIODZJRYHUQLQJDSSOLFDWLRQVIRUVXVSHQVLRQ               VXVSHQVLRQ RI GHSRUWDWLRQ XQGHU WKH ROG ,1$ EXW GLG QRW
    RIGHSRUWDWLRQIRUFLWL]HQVRI5RPDQLDZKRKDYHEHHQ                  LQYRNHWKHQHZSURYLVLRQ)LHUDQFLWHV2Q0DUFK
    SODFHGLQGHSRUWDWLRQSURFHHGLQJV6HHJHQHUDOO\VHFWLRQ             WKH %,$ IRXQG KLP LQHOLJLEOH WR DSSO\ IRU VXVSHQVLRQ RI
    FRIWKH1$&$5$>m0RWLRQVWRUHRSHQGHSRUWDWLRQ                  GHSRUWDWLRQ  ,G DW   7KH FRXUW LQ UHYLHZLQJ WKLV
    RUUHPRYDOSURFHHGLQJVl@                                             GHWHUPLQDWLRQDSSOLHGSUHODZDQGQRWHGWKDWLQYLHZRI
                                                                          WKHQHZ,,5,5$SURYLVLRQRQmFDQFHOODWLRQRIUHPRYDOlLWV
,Q UH 9LRUHO )LHUDQ )LOH $   &OHYHODQG %,$             GHFLVLRQ GLG QRW DSSO\ WR DOLHQV ZKR ZHUH SODFHG LQ
)HEsRLQW$SSHQGL[DW                                     SURFHHGLQJV RQ RU DIWHU $SULO    ,G DW  VHH DOVR
                                                                          7UHLPDQQY ,161R:/DW

                                                                          WK&LU'HFXQSXEOLVKHGPHPRUDQGXPRSLQLRQ
                                                                          m$OWKRXJK ,,5,5$ UHSHDOHG  D >VXVSHQVLRQ RI
                  L LV QRW LQDGPLVVLEOH RU GHSRUWDEOH XQGHU
                  SDUDJUDSK  RU  RI VHFWLRQ D RU SDUDJUDSK
                                                                          GHSRUWDWLRQ@DQGUHSODFHGLWZLWK,1$$>FDQFHOODWLRQRI
                    RU  RI VHFWLRQ D RI WKH ,PPLJUDWLRQ   UHPRYDO@ IRU DOLHQV OLNH 7UHLPDQQ SODFHG LQ SURFHHGLQJV
                  DQG 1DWLRQDOLW\ $FW DQG LV QRW DQ DOLHQ GHVFULEHG       EHIRUH$SULODJRYHUQVl
                  LQ VHFWLRQ E%L RI VXFK $FW
                  LL KDV EHHQ SK\VLFDOO\ SUHVHQW LQ WKH 8QLWHG             )LHUDQ ZDV SODFHG LQ H[FOXVLRQ SURFHHGLQJV RQ 0D\ 
                  6WDWHV IRU D FRQWLQXRXV SHULRG RI QRW OHVV WKDQ 
                                                                           ORQJ EHIRUH WKH HIIHFWLYH GDWH RI WKH ,,5,5$  7KH
                  \HDUV LPPHGLDWHO\ SUHFHGLQJ WKH GDWH RI VXFK
                  DSSOLFDWLRQ
                                                                          SURYLVLRQXSRQZKLFKKHUHOLHVWKHUHIRUHGRHVQRWDSSO\WRKLV
                  LLL KDV EHHQ D SHUVRQ RI JRRG PRUDO FKDUDFWHU         FDVH  )LHUDQjV DUJXPHQW LV OLPLWHG WR DVVHUWLQJ WKDW KH LV
                  GXULQJ VXFK SHULRG DQG                                 HOLJLEOHIRUUHOLHIXQGHUWKHVSHFLDOUXOHKHGRHVQRWFODLPWKDW
                  LY HVWDEOLVKHV WKDW UHPRYDO ZRXOG UHVXOW LQ           KH LV HQWLWOHG WR UHOLHI XQGHU WKH ROG DFW VR ZH QHHG QRW
                  H[WUHPH KDUGVKLS WR WKH DOLHQ RU WR WKH DOLHQjV         GLVFXVVWKHXQDYDLODELOLW\RIUHOLHIXQGHUWKHROG,1$6HH
                  VSRXVH SDUHQW RU FKLOG ZKR LV D FLWL]HQ RI WKH
                  8QLWHG 6WDWHV RU DQ DOLHQ ODZIXOO\ DGPLWWHG IRU
                                                                          3DWHO)GDWILQGLQJDQH[FOXGDEOHDOLHQLQHOLJLEOH
                  SHUPDQHQW UHVLGHQFH>@                                  IRUVXVSHQVLRQRIGHSRUWDWLRQXQGHUSUH,,5,5$ODZ
,,5,5$  I$
     )LHUDQY,16                                   1R       1R                                  )LHUDQY,16       

UHPRYDOl) 5(*,16LQWHULPUXOH               )LHUDQSHWLWLRQVWKLVFRXUWWRUHYLHZWKHGHQLDORIKLVPRWLRQ
VWDWLQJ WKDW WKRVH SODFHG LQ H[FOXVLRQ SURFHHGLQJV EHIRUH        WRUHPDQGDQGUHRSHQ
$SULODUHVXEMHFWWRWKHSUH,,5,5$UXOHVJRYHUQLQJ
H[FOXVLRQ                                                                              ,,6WDWXWRU\%DFNJURXQG
   0RUHRYHUWKHDPHQGPHQWjVSXUSRVHLVWRDSSO\SUH,,5,5$                8QGHUWKH,PPLJUDWLRQDQG1DWLRQDOLW\$FW,1$EHIRUH
VWDQGDUGVWRDOLHQVZKRDUHVXEMHFWWRWKHRWKHUVWULFWHUWHUPV        WKH  DPHQGPHQWV WKH ODZ GLVWLQJXLVKHG EHWZHHQ
RI WKH ,,5,5$  )LHUDQ LV QRW VXEMHFW WR WKH JHQHUDO          GHSRUWDEOHDQGH[FOXGDEOHDOLHQV$GHSRUWDEOHDOLHQZDVDQ
DPHQGPHQWVPDGHE\WKH,,5,5$ZKLFKDSSO\RQO\WRDOLHQV               DOLHQZKRKDGEHHQDGPLWWHGLQWRWKH8QLWHG6WDWHVEXWKDGWR
SODFHG LQ SURFHHGLQJV DIWHU $SULO   VHH ,,5,5$           EH H[SHOOHG  6HH  86&     $Q H[FOXGDEOH
DEXWLVVXEMHFWWRWKHWHUPVRIWKHSUH,,5,5$ODZ            DOLHQZDVDQDOLHQZKRZDVLQHOLJLEOHIRUDGPLVVLRQLQWRWKH
7KXVWKHDPHQGPHQWjVSXUSRVHWRLPSRVHSUH,,5,5$WHUPV                 8QLWHG6WDWHVVXFKDQDOLHQFRXOGEHSDUROHGLQWRWKH8QLWHG
ZRXOG EH LOORJLFDO KHUH ZKHUH SUH,,5,5$ WHUPV DOUHDG\           6WDWHVSHQGLQJWKHLQLWLDWLRQRIH[FOXVLRQSURFHHGLQJVEXWWKH
JRYHUQ                                                                DOLHQ DOWKRXJK SK\VLFDOO\ LQ WKH 8QLWHG 6WDWHV ZDV
                                                                        QHYHUWKHOHVV GHHPHG H[FOXGDEOH  6HH  86&  D
   )LHUDQ WULHV WR DYRLG WKLV FRQFOXVLRQ E\ DUJXLQJ WKDW WKH   86&G/HQJ0D\0DY%DUEHU
VXFFHHGLQJ ,,5,5$ VXEVHFWLRQ  J ZRXOG EH                  86     7KH QHZ VWDWXWRU\ VFKHPH DGRSWHG
PHDQLQJOHVVLIZHGRQRWDSSO\WKHVSHFLDOFDQFHOODWLRQUXOH            GLIIHUHQWWHUPLQRORJ\WKDWUHSODFHGWKHH[FOXVLRQGHSRUWDWLRQ
WR KLP  6HFWLRQ J SURYLGHV IRU PRWLRQV mWR UHRSHQ        GLVWLQFWLRQ SURYLVLRQV IRU mUHPRYDOl QRZ FRYHU ERWK
GHSRUWDWLRQRUUHPRYDOSURFHHGLQJVlIRUDQ\DOLHQmZKRKDV              H[FOXGDEOHDOLHQVQRZWHUPHGmLQDGPLVVLEOHlDQGGHSRUWDEOH
EHFRPHHOLJLEOHIRUFDQFHOODWLRQRIUHPRYDORUVXVSHQVLRQRI            DOLHQV6HH86&DD
GHSRUWDWLRQDVDUHVXOWRIWKHDPHQGPHQWVPDGHE\VHFWLRQ
 RI WKHl 1$&$5$  $FFRUGLQJ WR )LHUDQ QR DOLHQV              8QGHUWKHROG,1$WKH$WWRUQH\*HQHUDOKDGWKHGLVFUHWLRQ
DOUHDG\ LQ SURFHHGLQJV ZRXOG mEHFRPH HOLJLEOHl DV WKH           WR VXVSHQG WKH GHSRUWDWLRQ RI TXDOLILHG DOLHQV LI FHUWDLQ
SURYLVLRQFRQWHPSODWHVXQGHURXUUHDGLQJ                            FRQGLWLRQV ZHUH PHW WKLV GLVFUHWLRQ GLG QRW H[WHQG WR
                                                                        H[FOXGDEOHDOLHQV6HH86&D/HQJ0D\
   )LHUDQjVDUJXPHQWQHJOHFWVWKHFKDQJHVLQRWKHUVXEVHFWLRQV          0D86DW7KHQHZ,,5,5$UHSHDOHGWKLVDXWKRULW\
RIWKH1$&$5$ZKLFKPD\DSSO\WRDOLHQVDQGUHQGHUWKHP                DQGUHSODFHGLWZLWKDSURYLVLRQRQmFDQFHOODWLRQRIUHPRYDOl
HOLJLEOH IRU VXVSHQVLRQ RI GHSRUWDWLRQ  )RU LQVWDQFH WKH      ZKLFK FRQWDLQHG PRUH UHVWULFWLYH UXOHV  ,,5,5$  D
1$&$5$DOVRDPHQGHGWKHUXOHVRQFDOFXODWLQJWKHWLPHRI                FRGLILHGDW86&E&RQJUHVVWKHQDPHQGHGWKLV
DQ DOLHQjV UHVLGHQFH LQ WKH 8QLWHG 6WDWHV UHOHYDQW WR          QHZVFKHPHZKHQLWHQDFWHGWKH1$&$5$LQWKHIROORZLQJ
VXVSHQVLRQRIGHSRUWDWLRQHOLJLELOLW\IRUWKHFODVVRIDOLHQV          \HDUWRFUHDWHDQH[FHSWLRQIRUTXDOLI\LQJDOLHQVIURP&HQWUDO
IURP FHUWDLQ &HQWUDO $PHULFDQ DQG IRUPHU 6RYLHW %ORF             $PHULFDQ DQG IRUPHU 6RYLHW %ORF FRXQWULHV ZKR FRXOG
FRXQWULHV  1$&$5$  D DPHQGLQJ ,,5,5$                   EHQHILWIURPWKHOHVVVWULQJHQWROGUXOHVUDWKHUWKDQWKHQHZ
F&6RPHDOLHQVPD\WKDQNVWRWKLVDPHQGPHQW             ,,5,5$UXOHV7KHSURYLVLRQDWLVVXHKHUHLVWKHmVSHFLDOUXOH
ILQGWKDWWKH\KDYHHQRXJK\HDUVLQUHVLGHQFHWRTXDOLI\IRU            IRU FDQFHOODWLRQ RI UHPRYDOl 1$&$5$  E  7KLV
VXVSHQVLRQ RI GHSRUWDWLRQ ZKHUHDV WKH\ ZRXOG QRW KDYH           VSHFLDO UXOH VWDWHV WKDW LW DSSOLHV WR mDQ DOLHQ ZKR LV
EHIRUHWKH1$&$5$DPHQGPHQW6HH$VKNL)GDW                LQDGPLVVLEOHRUGHSRUWDEOHIURPWKH8QLWHG6WDWHVlLIVKHRU
H[SODLQLQJLQGLFWDWKDWm1$&$5$VHFWLRQDPHQGHGWKH               KHPHHWVFHUWDLQUHTXLUHPHQWV1$&$5$E)LHUDQ
WUDQVLWLRQUXOHVLQ,,5,5$VHFWLRQFWRH[HPSWFHUWDLQ          DUJXHVWKDWWKLVVSHFLDOUXOHDSSOLHVWRKLPVLQFHKHZDVLQ
       )LHUDQY,16                                       1R        1R                                    )LHUDQY,16        

H[FOXVLRQSURFHHGLQJVKHFRXOGQRWTXDOLI\IRUVXVSHQVLRQRI                  XQGHUWKHROG,1$6HH0DWWHURI7RUUHV,	1'HF
GHSRUWDWLRQXQGHUWKHROGODZEXWKLVKRSHLVWKDWKHZRXOG                   %,$:HDJUHHWKDW)LHUDQZDVQRWHOLJLEOH
EHHOLJLEOHIRUFDQFHOODWLRQRIUHPRYDOXQGHUWKH1$&$5$                       IRUVXVSHQVLRQRIGHSRUWDWLRQXQGHUWKHROG,1$VHH/HQJ
DPHQGPHQW ZKLFK PHQWLRQV ERWK LQDGPLVVLEOH DQG                           0D\ 0D  86 DW  EXW WKDW GRHV QRW DQVZHU WKH
GHSRUWDEOHDOLHQV                                                             TXHVWLRQRIZKHWKHURUQRWWKHQHZVWDWXWHDSSOLHVWR)LHUDQ
                   ,,,6WDWXWRU\&RQVWUXFWLRQ                                   7KHHIIHFWLYHGDWHRIWKH,,5,5$ZDV$SULODQGWKH
                                                                               VWDWXWHLVJHQHUDOO\SURVSHFWLYHm>V@XEMHFWWRWKHVXFFHHGLQJ
   :H UHYLHZ WKH %,$jV GHQLDO RI D PRWLRQ WR UHPDQG IRU              SURYLVLRQVRIWKLVVXEVHFWLRQLQWKHFDVHRIDQDOLHQZKRLVLQ
DEXVH RI GLVFUHWLRQ  $VKNL  )G DW   :H UHYLHZ           H[FOXVLRQ RU GHSRUWDWLRQ SURFHHGLQJV EHIRUH WKH WLWOH ,,,$
TXHVWLRQVRIVWDWXWRU\LQWHUSUHWDWLRQGHQRYRLGEXWZLWKGXH               HIIHFWLYHGDWH>$SULO@nWKHDPHQGPHQWVPDGHE\
GHIHUHQFHWRWKHLQWHUSUHWDWLRQE\WKH$WWRUQH\*HQHUDODQG                    WKLVVXEWLWOHVKDOOQRWDSSO\>@l,,5,5$FVHHDOVR
%,$  ,16 Y $JXLUUH$JXLUUH  86                  ,,5,5$  D HIIHFWLYH GDWH  7KHUH DUH QHYHUWKHOHVV
&KHYURQ86$,QFY1DWXUDO5HV'HI&RXQFLO,QF                  VHYHUDO UXOHV ODEHOHG mWUDQVLWLRQDO UXOHVl RU LQ RXU FDVH D
868QGHUWKLVDQDO\VLVZHPXVWILUVWDVN                  mVSHFLDOUXOHl7KHWUDQVLWLRQDOUXOHVDUHH[SOLFLWDERXWWKHLU
mZKHWKHU&RQJUHVVKDVGLUHFWO\VSRNHQWRWKHSUHFLVHTXHVWLRQ                  DSSOLFDWLRQ RQH RQ UHVLGHQF\ TXDOLILFDWLRQV DSSOLHV IRU
DW LVVXHl  &KHYURQ  86 DW   :H mHPSOR\>@                  H[DPSOHWRRUGHUVWRVKRZFDXVHmLVVXHGEHIRUHRQRUDIWHU
WUDGLWLRQDO WRROV RI VWDWXWRU\ FRQVWUXFWLRQl WR DVFHUWDLQ WKH           WKHGDWHRIWKHHQDFWPHQWRIWKLVDFWl,,5,5$F$
LQWHQWRI&RQJUHVVRQWKHLVVXH,GDWQ,I&RQJUHVV
KDVDGGUHVVHGWKHTXHVWLRQLWVDQVZHUmLVWKHODZDQGPXVWEH                   )LHUDQ LQYRNHV D UXOH FDSWLRQHG mVSHFLDO UXOH IRU
JLYHQHIIHFWl,G,IWKHUHLVDPELJXLW\LQWKHVWDWXWHWKHQZH             FDQFHOODWLRQRIUHPRYDOl,,5,5$I7KLVUXOHGRHV
GHWHUPLQH mZKHWKHU WKH DJHQF\jV DQVZHU LV EDVHG RQ D                   QRWVD\WKDWLWDSSOLHVWRRUGHUVLVVXHGEHIRUHWKHHQDFWPHQW
SHUPLVVLEOHFRQVWUXFWLRQRIWKHVWDWXWHl,GDW                        GDWH  &RQJUHVVjV IDLOXUH WR LQFOXGH ODQJXDJH DSSO\LQJ
                                                                               IWRFDVHVLQLWLDWHGSULRUWRWKH,,5,5$jVHQDFWPHQW
  )LHUDQFODLPVWKDWKHLVHOLJLEOHIRUFDQFHOODWLRQRIUHPRYDO                DQG&RQJUHVVjVH[SUHVVDSSOLFDWLRQRIVHYHUDORWKHU,,5,5$
XQGHU,,5,5$I2QDSSHDOWKH,16DUJXHVWKDWWKH                     SURYLVLRQVWRSUHHQDFWPHQWEHKDYLRUOHDGXVWRFRQFOXGHWKDW
SURYLVLRQRQO\DSSOLHVWRDOLHQVSODFHGLQSURFHHGLQJVRQRU                   &RQJUHVVLQWHQGHGIWRDSSO\WRDOLHQVZKRVHRUGHUVRI
DIWHU$SULO7KH%,$LQLWVGHFLVLRQGLGQRWDGGUHVV                  UHPRYDOZHUHHQWHUHGDIWHUWKH,,5,5$6HH6KHULILY,16
WKHUHWURDFWLYLW\RIWKH,,5,5$SURYLVLRQLQYRNHGE\)LHUDQ                   )G  :/  DW 
 WK &LU $XJ  
,QVWHDG LW GHWHUPLQHG WKDW WKH SURYLVLRQ ZDV LQDSSOLFDEOH              KROGLQJWKDW1$&$5$VXVSHQVLRQRIGHSRUWDWLRQGRHVQRW
EHFDXVH)LHUDQZDVH[FOXGDEOHZKLFKZRXOGEDUKLPIURP                        DSSO\WRDQDOLHQSODFHGLQH[FOXVLRQSURFHHGLQJVEHIRUHWKH
UHOLHIXQGHUWKHROG,1$7KH%,$VXSSRUWHGLWVFRQFOXVLRQ                    HIIHFWLYH GDWH RI WKH ODZ &DVWUR&RUWH] Y ,16  )G
ZLWKDFLWDWLRQWRDFDVHKROGLQJWKDWDOLHQVLQH[FOXVLRQ                WK&LUKROGLQJWKDWDQ,,5,5$SURYLVLRQ
SURFHHGLQJVZHUHQRWHOLJLEOHIRUVXVSHQVLRQRIGHSRUWDWLRQ                    RQUHLQVWDWHPHQWRIRUGHUVRIUHPRYDOGLGQRWDSSO\WRDOLHQV
                                                                               ZKRUHHQWHUHGSULRUWRWKH,,5,5$jVHIIHFWLYHGDWHVHHDOVR
                                                                               &21* 5(&661RY6HQDWH
                                                                              H[SODQDWRU\ PHPRUDQGXP RQ WKH 2PQLEXV $SSURSULDWLRQV
     $VKNL LQYROYHG D PRWLRQ WR UHRSHQ ZKLOH )LHUDQ VW\OHG KLV PRWLRQ         %LOO FRQWDLQLQJ 1$&$5$ VWDWLQJ WKDW m(OLJLEOH &ODVV
                                            6HH ,Q UH <HZRQGZRVHQ  , 	
DV RQH WR UHPDQG 7KH GLIIHUHQFH LQ WLWOH LV QRW VLJQLILFDQW EHFDXVH WKH WZR
                                                                               0HPEHUV ZKR ZHUH QRW LQ H[FOXVLRQ RU GHSRUWDWLRQ
1 'HF  %,$                          )G   WK &LU
PRWLRQV DUH WUHDWHG LQ D VLPLODU IDVKLRQ
                                                                               SURFHHGLQJVDVRI$SULOPD\DSSO\IRUFDQFHOODWLRQRI

                            5RGULJXH] Y ,16