Court Opinion

ID: 2970488
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:14:35.33083+00
Date Added: 2024-06-11T15:02:07.641055
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    +RSVRQY'DLPOHU&KU\VOHU&RUS                1R                       3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

                                                                               (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

WKH DFWXDO UHDVRQ IRU WKH FRPSDQ\jV DFWLRQV ZDV UDFLDO                             )LOH 1DPH DS

GLVFULPLQDWLRQ  7KHUH LV LQ WKLV UHFRUG KRZHYHU  QR
LQGLFDWLRQ ZKDWHYHU WKDW WKH GHIHQGDQWjV UHOLDQFH RQ WKH
HYDOXDWLRQVLQTXHVWLRQZDVRWKHUWKDQOHJLWLPDWH1RULVWKHUH        81,7('67$7(6&28572)$33($/6
DQ\UHDVRQWRGLVEHOLHYHWKHFRPSDQ\jVDVVHUWLRQWKDWWKHILIWK                           )257+(6,;7+&,5&8,7
DQG ODVW FDQGLGDWH KDG PDQDJHPHQW H[SHULHQFH ZLWK WKH                                BBBBBBBBBBBBBBBBB
FRPSDQ\ WKDW ZDV VXSHULRU WR +RSVRQjV  $JDLQ LW ZDV
+RSVRQjVEXUGHQWRSURYHWKDWWKHEXVLQHVVUHDVRQVFLWHGE\
WKHGHIHQGDQWIRULWVGHFLVLRQVZHUHSUHWH[WXDOQRWWKHRWKHU
ZD\DURXQG                                                             ('',( +23621                     ;
                                                                                3ODLQWLII$SSHOODQW      
   $VWKHPDMRULW\FRQFHGHVRXUFLUFXLWSUHFHGHQWUHFRJQL]HV                                              
WKDW m7LWOH 9,, GRHV QRW GLPLQLVK WUDGLWLRQDO PDQDJHPHQW                                              1R
SUHURJDWLYHVLQFKRRVLQJDPRQJTXDOLILHGFDQGLGDWHVl:UHQQ                       Y                      
Y*RXOG)GWK&LU,QP\MXGJPHQW                                               !
                                                                                                           
LW ZDV WKH H[HUFLVH RI WKDW SUHURJDWLYH WKDW OHG WR WKH       '$,0/(5&+5<6/(5                    
GHIHQGDQWjV DFWLRQV LQ WKLV FDVH  &HUWDLQO\ , FDQ VHH QR    &25325$7,21                       
JHQXLQHLVVXHRIPDWHULDOIDFWWKDWZRXOGOHDGWRWKHRSSRVLWH                    'HIHQGDQW$SSHOOHH 
FRQFOXVLRQ  8QOLNH WKH PDMRULW\ P\ FUHGXOLW\ LV QRW                                              
mVWUDLQHGl E\ WKLV UHFRUG  7KHUH ZDV REYLRXVO\ KHDWHG                                            1
FRPSHWLWLRQIRUWKHSRVLWLRQVLQTXHVWLRQLQQRFDVHZHUH
WKHUHIHZHUWKDQDSSOLFDQWVIRUSURPRWLRQDQGLQRQHFDVH                 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
WKHUH ZHUH  DSSOLFDQWV 8QGRXEWHGO\ PDQ\ RI WKHVH                  IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
DSSOLFDQWVZHUHDWOHDVWPLQLPDOO\TXDOLILHGIRUSURPRWLRQ              1RnsRKQ&RUEHWW2j0HDUD'LVWULFWsXGJH
EXWRQO\RQHFRXOGEHFKRVHQLQHDFKLQVWDQFHDQGLWZDVWKH
FRPSDQ\jV SUHURJDWLYH WR GHWHUPLQH ZKLFK DPRQJ WKRVH                                   $UJXHGsXQH
TXDOLILHGWRSURPRWH+RSVRQKDGEHHQWKHEHQHILFLDU\RIDW
OHDVWWKUHHVXFKSURPRWLRQVEHWZHHQDQG3HUKDSV                        'HFLGHGDQG)LOHG6HSWHPEHU
DIWHUVRPH\HDUVZLWKWKHFRPSDQ\KHKDGDGYDQFHGWRWKH
OLPLWWRZKLFKKLVDELOLWLHVFRXOGFDUU\KLPDVZHDOOGRDW              %HIRUH.(,7+DQG'$8*+75(<&LUFXLWsXGJHV
VRPHSRLQWLQRXUFDUHHUV7KDWFRQFOXVLRQLVDVVRXQGEDVHG                        0$5%/(<'LVWULFWsXGJH
RQWKLVUHFRUGDVWKHPDMRULW\jVVSHFXODWLRQWKDWKLVIDLOXUHWR
DGYDQFH IDUWKHU ZDV VRPHKRZ WKH SURGXFW RI XQODZIXO
GLVFULPLQDWLRQ
  )RU WKHVH UHDVRQV , ZRXOG DIILUP WKH MXGJPHQW RI WKH
GLVWULFWFRXUW

                                                                           
                                                                            7KH +RQRUDEOH $OJHQRQ / 0DUEOH\ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
                                                                       WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

                                                                                                           
     +RSVRQY'DLPOHU&KU\VOHU&RUS                 1R       1R            +RSVRQY'DLPOHU&KU\VOHU&RUS            

                      BBBBBBBBBBBBBBBBB                                 QRWUHYHDOWKHEDVLVIRUKLVRSLQLRQlWKDWm+RSVRQjVUDFHZDV
                                                                        D IDFWRU LQ WKH FRPSDQ\jV GHFLVLRQ WR GHQ\ KLP WKH
                           &2816(/                                      SURPRWLRQVIRUZKLFKKHDSSOLHGl)RUWKLVUHDVRQ6ODWHUjV
                                                                        RSLQLRQPD\ZHOOEHLQDGPLVVLEOHIRUODFNRIDIRXQGDWLRQDQ
$5*8('  sDPLO $NKWDU $.+7$5 	 68&+(5 7UR\                    RXWFRPH WKDW LQ P\ MXGJPHQW VHYHUHO\ XQGHUFXWV WKH
0LFKLJDQIRU$SSHOODQW0DUN:0F,QHUQH\&/$5.+,//                 PDMRULW\jV ODWHU GHWHUPLQDWLRQ WKDW 6ODWHUjV DSSDUHQWO\
3/&'HWURLW0LFKLJDQIRU$SSHOOHH21%5,()sDPLO                 JURXQGOHVVRSLQLRQQHYHUWKHOHVVmFRQVWLWXWH>V@FLUFXPVWDQWLDO
$NKWDU $.+7$5 	 68&+(5 7UR\ 0LFKLJDQ IRU                      HYLGHQFHRIGLVFULPLQDWLRQl
$SSHOODQW  0DUN : 0F,QHUQH\ sDFN 9DQ+RRUHOEHNH
&/$5.+,//3/&'HWURLW0LFKLJDQIRU$SSHOOHH                          7KHGLVWULFWFRXUWDOVRGLVFRXQWHGWKHSODLQWLIIjVVWDWLVWLFDO
                                                                        HYLGHQFHILQGLQJWKDWWKHGLVSDULW\EHWZHHQWKHSHUFHQWDJHRI
  0$5%/(<'sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQ                $IULFDQ$PHULFDQ VHFXULW\ JXDUGV DQG WKDW RI $IULFDQ
ZKLFK .(,7+ s MRLQHG  '$8*+75(< s SS             $PHULFDQPDQDJHUVFRXOGQRWEHXVHGWRHVWDEOLVKSUHWH[W
GHOLYHUHGDVHSDUDWHGLVVHQWLQJRSLQLRQ                                EHFDXVH WKHUH ZDV QR HYLGHQFH mWR VKRZ WKH QXPEHU RI
                                                                        $IULFDQ$PHULFDQDSSOLFDQWVIRUWKRVH>PDQDJHPHQW@MREVRU
                      BBBBBBBBBBBBBBBBB                                 WKHLUTXDOLILFDWLRQVl7KHIDFWWKDWWKHVWDWLVWLFDOHYLGHQFHZDV
                                                                        WKXV OHJDOO\ mLQFRPSOHWHl DV WKH GLVWULFW FRXUW FRUUHFWO\
                          23,1,21                                       GHVFULEHGLWLVVLPSO\QRWDGGUHVVHGE\WKHPDMRULW\DOWKRXJK
                      BBBBBBBBBBBBBBBBB                                 WKH VWDWLVWLFV DUH FLWHG DV D EDVLV IRU FRQFOXGLQJ WKDW WKH
   $/*(121/0$5%/(<'LVWULFWsXGJH(GGLH+RSVRQ                   GHIHQGDQWjVSURIIHUHGUHDVRQIRULWVDFWLRQVZDVSUHWH[WXDO
sULVDORQJWLPHHPSOR\HHRI'DLPOHU&KU\VOHU&RUSRUDWLRQ                +HQFH,FDQQRWDJUHHZLWKWKHPDMRULW\jVGHFLVLRQWRVHQG
ZKR KDV DSSOLHG XQVXFFHVVIXOO\ IRU VHYHUDO RSHQ SRVLWLRQV        WKHFDVHWRDMXU\EDVHG PHUHO\RQ6ODWHUjVRSLQLRQZKLFK
ZLWKLQ WKH FRPSDQ\ PDQ\ RI ZKLFK ZRXOG KDYH EHHQ               PD\EHZKROO\VSHFXODWLYHDQGRQWKHTXHVWLRQDEOHVWDWLVWLFDO
SURPRWLRQV%HOLHYLQJWKDWKHZDVXQDEOHWRREWDLQWKHVHMREV          WHVWLPRQ\ RIIHUHG LQ WKLV FDVH  ,Q DGGLWLRQ , ILQG DQRWKHU
EHFDXVHRIKLVUDFH+RSVRQILOHGVXLWDJDLQVWKLVHPSOR\HU             FRPSHOOLQJEDVLVIRUFRQFOXGLQJWKDWVXPPDU\MXGJPHQWZDV
DOOHJLQJ GLVSDUDWH WUHDWPHQW XQGHU 7LWOH 9,, DQG 0LFKLJDQ        DSSURSULDWH,QIRXURIWKHILYHDFWLRQVWDNHQE\WKHGHIHQGDQW
ODZ$IWHUOLPLWHGGLVFRYHU\'DLPOHU&KU\VOHUILOHGDPRWLRQ           WKDW DUH LQ FRQWHQWLRQ RQ DSSHDO WKH GHIHQGDQW GHWHUPLQHG
IRUVXPPDU\MXGJPHQWLQZKLFKLWFRQFHGHGWKDW+RSVRQZDV              WKDWDQDSSOLFDQWRWKHUWKDQ+RSVRQZDVEHWWHUTXDOLILHGIRU
DEOHWRHVWDEOLVKDSULPDIDFLHFDVHEXWDUJXHGWKDW+RSVRQ            WKH SRVLWLRQ LQ TXHVWLRQ QRW RQO\ RQ WKH EDVLV RI DFDGHPLF
KDG IDLOHG WR SUHVHQW DQ\ HYLGHQFH WKDW LWV OHJLWLPDWH QRQ   FUHGHQWLDOVDQGH[SHULHQFHZLWKLQWKHFRPSDQ\EXWDOVRRQ
GLVFULPLQDWRU\UHDVRQIRUFKRRVLQJSHUVRQVRWKHUWKDQ+RSVRQ            WKH EDVLV RI DQQXDO SHUIRUPDQFH HYDOXDWLRQV WKDW ZHUH
IRU WKH SRVLWLRQV o WKH FRPSDQ\jV GHWHUPLQDWLRQ WKDW RWKHU      VXSHULRU WR WKH SODLQWLIIjV 7KH PDMRULW\ LQGLFDWHV WKDW
DSSOLFDQWVZHUHPRUHTXDOLILHGWKDQ+RSVRQoZDVSUHWH[WXDO            WHVWLPRQ\ UHJDUGLQJ WKH HYDOXDWLRQV VKRXOG EH GLVFRXQWHG
7KHGLVWULFWFRXUWDJUHHGDQGJUDQWHGVXPPDU\MXGJPHQWLQ              EHFDXVHLQHDFKFDVHWKHGHIHQGDQWmIDLOHGWRLQGLFDWHWKH
IDYRU RI 'DLPOHU&KU\VOHU  +RSVRQ QRZ DSSHDOV IURP WKDW         H[WHQWWRZKLFK>WKHDSSOLFDQWjV@HYDOXDWLRQVZHUHEHWWHUWKDQ
RUGHUDUJXLQJWKDWWKHGLVWULFWFRXUWHUUHGLQLWVFRQFOXVLRQ          +RSVRQjVl%XWWKLVUXOLQJWXUQVWKH0F'RQQHOO'RXJODV
WKDWKHIDLOHGWRUDLVHDJHQXLQHLVVXHRIPDWHULDOIDFWZLWK           DQDO\VLVRQLWVKHDG7KDWDQDO\VLVFOHDUO\DQGXQHTXLYRFDOO\
UHVSHFW WR ZKHWKHU 'DLPOHU&KU\VOHUjV OHJLWLPDWH QRQ              SODFHV WKH EXUGHQ RQ WKH SODLQWLII WR SURYH WKDW WKH
GLVFULPLQDWRU\UHDVRQIRUVHOHFWLQJRWKHUDSSOLFDQWVIRUFHUWDLQ        SHUIRUPDQFHHYDOXDWLRQVZHUHEHLQJXVHGDVDSUHWH[WZKHQ
RSHQ SRVLWLRQV ZDV SUHWH[WXDO  7KH GLVWULFW FRXUW SURSHUO\
    +RSVRQY'DLPOHU&KU\VOHU&RUS                1R       1R               +RSVRQY'DLPOHU&KU\VOHU&RUS                 

                       BBBBBBBBBBBBBBB                                 H[HUFLVHGMXULVGLFWLRQRYHUWKLVPDWWHUSXUVXDQWWR86&
                                                                         DQG   7KLV &RXUWjV DSSHOODWH MXULVGLFWLRQ LV
                          ',66(17                                      SURSHUXQGHU86&
                       BBBBBBBBBBBBBBB
                                                                         )RUWKHUHDVRQVGLVFXVVHGEHORZWKLV&RXUWILQGVWKDWWKH
  0$57+$ &5$,* '$8*+75(< &LUFXLW sXGJH                           GLVWULFWFRXUWHUUHGLQLWVFRQFOXVLRQWKDW3ODLQWLII$SSHOODQW
GLVVHQWLQJ  %HFDXVH , FRQFOXGH WKDW WKH GLVWULFW FRXUW ZDV   IDLOHG WR UDLVH D JHQXLQH LVVXH RI PDWHULDO IDFW UHJDUGLQJ
FRUUHFW LQ JUDQWLQJ VXPPDU\ MXGJPHQW WR WKH GHIHQGDQW ,       'HIHQGDQW$SSHOOHHjVOHJLWLPDWHQRQGLVFULPLQDWRU\UHDVRQ
UHVSHFWIXOO\GLVVHQWIURPWKHPDMRULW\jVGHFLVLRQWRUHYHUVH          DQG WKHUHIRUH 5(9(56(6 WKH MXGJPHQW RI WKH GLVWULFW
WKDWRUGHUDQGUHPDQGWKHFDVHIRUWULDO7KHGLVWULFWFRXUW          FRXUWDQG5(0$1'6WKHFDVHIRUIXUWKHUSURFHHGLQJV
IRXQG WKDW WKH SODLQWLII KDG QRW HVWDEOLVKHG XQODZIXO
GLVFULPLQDWLRQEDVHG XSRQGLUHFWHYLGHQFHEXWWKDWKHKDG             ,)$&78$/$1'352&('85$/%$&.*5281'
PDGHRXWDSULPDIDFLHFDVHEDVHGRQFLUFXPVWDQWLDOHYLGHQFH
7KH FRXUW DOVR IRXQG WKDW WKH GHIHQGDQW KDG SURYLGHG D                                 $)DFWXDO+LVWRU\
OHJLWLPDWHEXVLQHVVUHDVRQIRUIDLOLQJWRSURPRWH+RSVRQ
VSHFLILFDOO\WKDWRWKHUDSSOLFDQWVZHUHEHWWHUTXDOLILHGWKDQ           (GGLH+RSVRQsUm+RSVRQlDQ$IULFDQ$PHULFDQEHJDQ
WKH SODLQWLII  IRU WKH SRVLWLRQV LQ TXHVWLRQ  7KXV WKH     ZRUNLQJIRU'DLPOHU&KU\VOHU&RUSRUDWLRQm'DLPOHU&KU\VOHUl
GLVSRVLWLYH TXHVWLRQ EHFRPHV ZKHWKHU WKH SODLQWLII FDQ           RU m&KU\VOHUl LQ   'DLPOHU&KU\VOHUjV VDODULHG
HVWDEOLVKSUHWH[WRQWKHSDUWRIWKHGHIHQGDQWLQUHO\LQJXSRQ         ZRUNIRUFH LV RUJDQL]HG IRU SXUSRVHV RI VDODU\ DQG
WKLVMXVWLILFDWLRQIRULWVDFWLRQV                                    UHVSRQVLELOLW\ LQWR D EDQG V\VWHP  6DODU\ EDQGV UXQ IURP
                                                                       %DQGWR%DQG(PSOR\HHVDW%DQGDQGDERYHDUH
  7KHPDMRULW\FRQFOXGHVWKDWWKHUHLVVXIILFLHQWHYLGHQFHLQ          UHJDUGHG DV H[HFXWLYHV RI WKH FRUSRUDWLRQ  6LJQLILFDQW WR
WKHUHFRUGWRJLYHULVHWRDJHQXLQHLVVXHRIPDWHULDOIDFWRQ         +RSVRQjV ODZVXLW VXSHUYLVRUV DQG PDQDJHUV ZLWKLQ WKH
WKH TXHVWLRQ RI SUHWH[W EDVHG VROHO\ RQ D FRPELQDWLRQ RI     VHFXULW\RSHUDWLRQRIWKHFRUSRUDWLRQDUHLQ%DQGVRU
VXSHUYLVRU 6ODWHUjV RSLQLRQ WKDW UDFLDO GLVFULPLQDWLRQ            JHQHUDOO\GHSHQGLQJRQWKHVL]HRIWKHSODQWLQZKLFKWKH\
DFFRXQWHGIRUWKHFRPSDQ\jVDFWLRQVZLWKUHJDUGWR+RSVRQ              ZRUN  7KH 6HQLRU 0DQDJHU RI 3ODQW 6HFXULW\ 2SHUDWLRQV
DQGVWDWLVWLFDOHYLGHQFHVKRZLQJDGLVSDULW\EHWZHHQPLQRULW\          'DYLG6WHSDQLDNm6WHSDQLDNlLVD%DQGH[HFXWLYH
UHSUHVHQWDWLRQ LQ WKH ZRUN IRUFH DQG WKDW LQ WKH UDQNV RI
PDQDJHPHQW,FDQQRWDJUHHZLWKWKLVFRQFOXVLRQSULPDULO\              +RSVRQZDVRULJLQDOO\KLUHGE\&KU\VOHUDVDQDVVHPEO\
EHFDXVHWKHHYLGHQFHFLWHGLVVLPSO\LQVXIILFLHQWWRFUHDWHD          ZRUNHUEXWEHFDPHDVHFXULW\JXDUGDIHZPRQWKVODWHU,Q
JHQXLQHLVVXHRIIDFWDQGEHFDXVHWKHSODLQWLIIKDVRWKHUZLVH         KHZDVSURPRWHGWRDVDODULHGVXSHUYLVRU\SRVLWLRQLQ
IDLOHGWRVKRZWKDWWKHOHJLWLPDWHEXVLQHVVUHDVRQSXWIRUZDUG         VHFXULW\  +RSVRQ FRQWLQXHG KLV HGXFDWLRQ GXULQJ KLV
E\WKHGHIHQGDQWLVSUHWH[WXDO                                        HPSOR\PHQW ZLWK WKH FRPSDQ\ DQG HDUQHG DQ DVVRFLDWHjV
                                                                       GHJUHHLQVHFXULW\DQGORVVSUHYHQWLRQDEDFKHORUjVGHJUHHLQ
   7KH PDMRULW\ DJUHHV ZLWK WKH GLVWULFW FRXUW WKDW 6ODWHUjV   VDIHW\PDQDJHPHQWDQGDPDVWHUjVGHJUHHLQDGPLQLVWUDWLRQ
WHVWLPRQ\GRHVQRWFRQVWLWXWHGLUHFWHYLGHQFHmWKDWXQODZIXO
GLVFULPLQDWLRQZDVDPRWLYDWLQJIDFWRULQ'DLPOHU&KU\VOHUjV
DFWLRQVlSRLQWLQJRXWWKDW6ODWHUmKDGQRLQYROYHPHQWLQWKH
GHFLVLRQPDNLQJSURFHVVZLWKUHVSHFWWRWKHSDUWLFXODUMREVDW
LVVXHl,QWKLVUHJDUGWKHPDMRULW\DOVRQRWHVWKDW6ODWHUmGLG          
                                                                            9   WKH WLPH WKDW KH VWDUWHG ZRUNLQJ IRU WKH FRPSDQ\ LW ZDV VWLOO WKH
                                                                       &KU\VOHU &RUSRUDWLRQ
        +RSVRQY'DLPOHU&KU\VOHU&RUS                               1R          1R          +RSVRQY'DLPOHU&KU\VOHU&RUS          

   ,QDSSDUHQWO\LQFRQQHFWLRQZLWKDUHGXFWLRQRILWV                                   7KH&RXUWILQGVWKDW+RSVRQjVHYLGHQFHUDLVHVDJHQXLQH
ZRUNIRUFH&KU\VOHUGHPRWHG+RSVRQWRDQRQVDODULHGJXDUG                                 LVVXHZLWKUHVSHFWWRZKHWKHUWKHSURIIHUHGUHDVRQVFRQVWLWXWH
SRVLWLRQ6KRUWO\WKHUHDIWHU+RSVRQDQGRWKHUVDIIHFWHGE\                                SUHWH[WIRUGLVFULPLQDWLRQ'U6DVHjVVWDWLVWLFVZKHQFRXSOHG
WKHZRUNIRUFHUHGXFWLRQEURXJKWVXLWDJDLQVWWKHFRPSDQ\                                  ZLWK 6ODWHUjV WHVWLPRQ\ WHQG WR VKRZ WKDW LI 'HIHQGDQW
DOOHJLQJ WKDW WKHLU GHPRWLRQV ZHUH WKH UHVXOW RI UDFH                               $SSHOOHHjV HPSOR\PHQW GHFLVLRQV ZHUH QRW EDVHG RQ
GLVFULPLQDWLRQ  $V SDUW RI WKH VHWWOHPHQW RI WKDW ODZVXLW                        OHJLWLPDWHFULWHULDWKHQWKH\ZHUHEDVHGRQUDFLDODQLPXV,Q
&KU\VOHU UHSURPRWHG +RSVRQ WR D VDODULHG VXSHUYLVRU\                                 IDFWZKLOHWKHVWDWLVWLFDOGLVFUHSDQF\PD\KDYHDULVHQGXHWR
SRVLWLRQDWRQHRIWKHFRPSDQ\jVDVVHPEO\SODQWV%HWZHHQ                                  VRPH RWKHU IDFWRU QRW \HW WDNHQ LQWR DFFRXQW 6ODWHUjV
 DQG  &KU\VOHU SURPRWHG +RSVRQ WKUHH WLPHV WR                              WHVWLPRQ\ LQGLFDWHV WKDW WKH RQO\ SRVVLEOH H[SODQDWLRQ IRU
KLJKHUVDODULHGSRVLWLRQVDWWKDWSODQW,QSDUWLFXODULQ                            'HIHQGDQW$SSHOOHHjV HPSOR\PHQW GHFLVLRQV RWKHU WKDQ
KHZDVSURPRWHGWRWKHSRVLWLRQRI&RPSOH[$GPLQLVWUDWRUo                                  OHJLWLPDWHHPSOR\PHQWFULWHULDLVUDFLDOGLVFULPLQDWLRQ
D OHDGHUVKLS SRVLWLRQ LQ WKH VHFXULW\ RSHUDWLRQ DW D JLYHQ
FRPSOH[  7KH &RPSOH[ $GPLQLVWUDWRU VXEVWLWXWHV IRU WKH                                7KHUHIRUH WKH &RXUW ILQGV WKDW 3ODLQWLII$SSHOODQW KDV
&RPSOH[6HFXULW\0DQDJHULQWKHPDQDJHUjVDEVHQFH                                          UDLVHGDJHQXLQHLVVXHRIPDWHULDOIDFWZLWKUHVSHFWWRZKHWKHU
                                                                                            'HIHQGDQW$SSHOOHHjVSURIIHUHGUHDVRQVIRULWVHPSOR\PHQW
  %HJLQQLQJLQPLG+RSVRQDSSOLHGZLWKRXWVXFFHVV
                                            
                                                                                            DFWLRQVZHUHSUHWH[WXDODQGKHUHE\5(9(56(6WKHGLVWULFW
IRUVHYHQMRERSHQLQJVLQWKHFRPSDQ\   
                                             DOORIZKLFKZHUH                             FRXUWjVMXGJPHQWJUDQWLQJVXPPDU\MXGJPHQWWR'HIHQGDQW
SRVWHGLQWHUQDOO\DW'DLPOHU&KUV\VOHU )RUHDFKMRE+RSVRQ                               $SSHOOHH ZLWK UHVSHFW WR 3ODLQWLII$SSHOODQWjV FODLP RI
VXEPLWWHGDQDSSOLFDWLRQEXWZDVUHMHFWHGLQIDYRURIDZKLWH                              GLVFULPLQDWLRQEURXJKWSXUVXDQWWR0LFKLJDQjV(OOLRWW/DUVHQ
HPSOR\HH6WHSDQLDNPDGHHDFKRIWKHHPSOR\PHQWGHFLVLRQV                                  &LYLO5LJKWV$FW0LFK&RPS/DZV HWVHT
IRU WKHVH SRVLWLRQV ZLWK WKH DVVLVWDQFH RI YDULRXV RWKHU
PDQDJHUV  7KH SRVLWLRQV IRU ZKLFK +RSVRQ DSSOLHG DQG                                                  ,9&21&/86,21
6WHSDQLDNjVSURIIHUHGUHDVRQVIRUKLULQJRWKHUHPSOR\HHVDUH
DVIROORZV                                                                                   3ODLQWLII$SSHOODQW KDV SUHVHQWHG VXIILFLHQW HYLGHQFH WR
                                                                                            UDLVHDJHQXLQHLVVXHRIPDWHULDOIDFWZLWKUHVSHFWWRZKHWKHU
  )LUVW LQ $XJXVW  +RSVRQ DSSOLHG IRU D %DQG                               'HIHQGDQW$SSHOOHHjVOHJLWLPDWHQRQGLVFULPLQDWRU\UHDVRQV
VXSHUYLVRU\ SRVLWLRQ DV D VHFXULW\ PDQDJHU IRU WKH 0RSDU                            IRULWVHPSOR\PHQWGHFLVLRQVDUHSUHWH[WXDODQGZKHWKHUWKH\
3DUWV'LYLVLRQ7KHMRESRVWLQJIRUWKLVSRVLWLRQFDOOHGIRUD                             DUHDSUHWH[WIRUGLVFULPLQDWLRQ7KHUHIRUHWKHMXGJPHQWRI
EDFKHORUjV GHJUHH LQ ORVV SUHYHQWLRQ FULPLQDO MXVWLFH RU D                        WKH GLVWULFW FRXUW LV 5(9(56(' DQG WKH FDVH LV
UHODWHGILHOGDQGILYHWRVHYHQ\HDUVRIVXSHUYLVRU\H[SHULHQFH                            5(0$1'('IRUIXUWKHUSURFHHGLQJVLQDFFRUGDQFHZLWKWKLV
                                                                                            2SLQLRQ

    
       +RSVRQ DWWULEXWHG UHWDOLDWLRQ DV WKH FDXVH IRU KLV QRW EHLQJ DEOH WR
REWDLQ   WZR    RI   WKH   VHYHQ   SRVLWLRQV   IRU   ZKLFK     KH   DSSOLHG    +H   KDV
DEDQGRQHG KLV UHWDOLDWLRQ FODLP RQ DSSHDO DQG WKHUHIRUH WKH &RXUW ZLOO
DGGUHVV RQO\ WKH ILYH HPSOR\PHQW DFWLRQV FXUUHQWO\ DW LVVXH

    
       ,Q DGGLWLRQ +RSVRQ FODLPV WKDW LQ 'HFHPEHU  KH ZDV GHPRWHG
IURP    KLV   SRVLWLRQ     DV   FRPSOH[   DGPLQLVWUDWRU   WR   WKH   SRVLWLRQ   RI   OLQH
VXSHUYLVRU     +RSVRQ KDV QRW FODLPHG KRZHYHU WKDW WKLV GHPRWLRQ ZDV
EDVHG RQ UDFH
       +RSVRQY'DLPOHU&KU\VOHU&RUS                   1R        1R          +RSVRQY'DLPOHU&KU\VOHU&RUS           

               (OOLRWW/DUVHQ&LYLO5LJKWV$FW                            LQ mVHFXULW\ILUH SUHYHQWLRQl  7ZHQW\WKUHH HPSOR\HHV
                                                                              LQFOXGLQJ +RSVRQ DSSOLHG IRU WKH SRVLWLRQ  $FFRUGLQJ WR
  7KHEDVLFEXUGHQVKLIWLQJDQDO\VLVDSSOLFDEOHWR+RSVRQjV                   6WHSDQLDNKHDQG0LFKDHO3LFUDX[WKHPDQDJHUWRZKRPWKH
IHGHUDO FODLPV LV DOVR DSSOLFDEOH WR KLV VWDWH FODLPV DULVLQJ       SHUVRQLQWKLVSRVLWLRQZRXOGUHSRUWXOWLPDWHO\FKRVH:DUUHQ
XQGHU 0LFKLJDQ ODZ   6HH +D]OH Y )RUG 0RWRU &R               +DZNLQV D ZKLWH PDOH WR ILOO WKH RSHQLQJ EHFDXVH WKH\
1:G   0LFK   8QOLNH IHGHUDO ODZ                 FRQVLGHUHG KLP WR EH WKH PRVW TXDOLILHG IRU WKH MRE
KRZHYHU0LFKLJDQODZLPSRVHVDKLJKHUEXUGHQRQSODLQWLIIV                   &RQFHGLQJ WKDW +RSVRQ PHW WKH SRVWHG MRE UHTXLUHPHQWV
DIWHU WKH HPSOR\HU KDV SUHVHQWHG D OHJLWLPDWH QRQ                    6WHSDQLDNQRWHGWKDW+DZNLQVDWKLUW\\HDUFRPSDQ\YHWHUDQ
GLVFULPLQDWRU\ UHDVRQ IRU LWV HPSOR\PHQW DFWLRQV                        ZDV VHOHFWHG EHFDXVH KH KDG PDQDJHULDO H[SHULHQFH WKDW
6SHFLILFDOO\ 0LFKLJDQ ODZ UHTXLUHV WKDW WKH SODLQWLII VKRZ            +RSVRQODFNHGDQGmUDWHGPRUHKLJKO\WKDQ0U+RSVRQLQ
WKDWWKHHPSOR\HUjVVWDWHGUHDVRQLVSUHWH[WIRUGLVFULPLQDWLRQ              KLVDQQXDOHYDOXDWLRQl
6HH/\WOHY0DODG\1:G0LFK,Q
/\WOHWKHFRXUWVWDWHG                                                         6HFRQG LQ 1RYHPEHU  +RSVRQ DSSOLHG IRU WKH
                                                                              SRVLWLRQRIWUDLQLQJDGPLQLVWUDWRUDOVRD%DQGSRVLWLRQ
  >'@LVSURRI RI DQ HPSOR\HUjV DUWLFXODWHG UHDVRQ IRU DQ                'DLPOHU&KU\VOHUjVSRVWLQJIRUWKLVSRVLWLRQLQGLFDWHVWKDWD
  DGYHUVH HPSOR\PHQW GHFLVLRQ GHIHDWV VXPPDU\                             EDFKHORUjVGHJUHHLQFULPLQDOMXVWLFHHGXFDWLRQRUDUHODWHG
  GLVSRVLWLRQRQO\LIVXFKGLVSURRIDOVRUDLVHVDWULDEOHLVVXH               ILHOGLVUHTXLUHGDORQJZLWKILYH\HDUVVXSHUYLVRU\H[SHULHQFH
  WKDW GLVFULPLQDWRU\ DQLPXV ZDV D PRWLYDWLQJ IDFWRU                    LQ mVHFXULW\ILUH SUHYHQWLRQl  +RSVRQ DQG VL[WHHQ RWKHU
  XQGHUO\LQJ WKH HPSOR\HUjV DGYHUVH DFWLRQ  ,Q RWKHU                  HPSOR\HHVSRVWHGIRUWKHMRE:LWKUHVSHFWWRWKLVSRVLWLRQ
  ZRUGVSODLQWLIIPXVWQRWPHUHO\UDLVHDWULDEOHLVVXHWKDW                 6WHSDQLDNVWDWHVWKDWKHDQGWKHRWKHUGHFLVLRQPDNHUFKRVH
  WKHHPSOR\HUjVSURIIHUHGUHDVRQZDVSUHWH[WXDOEXWWKDW                    6HDQsR\FHDZKLWHPDOHZKRPWKH\FRQVLGHUHGWREHWKH
  LWZDVDSUHWH[WIRUGLVFULPLQDWLRQ                                  PRVWTXDOLILHGSHUVRQIRUWKHMRE$FFRUGLQJWR6WHSDQLDN
                                                                              sR\FHKDGH[SHULHQFHWUDLQLQJVHFXULW\HPSOR\HHVDVDVHFXULW\
,G$OWKRXJK/\WOHZDVLVVXHGEHIRUH5HHYHVLWDSSHDUVWKDW                 PDQDJHU ZKLOH +RSVRQ ODFNHG H[SHULHQFH DV D VHFXULW\
/\WOHLVVWLOOJRRGODZZLWKUHVSHFWWRWKLVLVVXHLQ0LFKLJDQ               PDQDJHU,QDGGLWLRQ6WHSDQLDNQRWHVWKDWsR\FHZDVUDWHG
7KXVKDYLQJFRQFOXGHGWKDW+RSVRQKDVPHWKLVEXUGHQRI                      PRUHKLJKO\WKDQ+RSVRQLQKLVDQQXDOHYDOXDWLRQV
UDLVLQJ D JHQXLQH LVVXH RI PDWHULDO IDFW ZLWK UHVSHFW WR
ZKHWKHU'DLPOHU&KU\VOHUjVVWDWHGUHDVRQVIRULWVHPSOR\PHQW                     7KLUGRQ0DUFK+RSVRQDSSOLHGIRUWKHSRVLWLRQ
GHFLVLRQVDUHSUHWH[WWKH&RXUWQRZWXUQVWRWKHTXHVWLRQRI                 RIVXSSRUWVHUYLFHVDQDO\VWD%DQGSRVLWLRQ$FFRUGLQJ
ZKHWKHU+RSVRQKDVUDLVHGDJHQXLQHLVVXHRIPDWHULDOIDFW                    WRWKHSRVWLQJWKLVSRVLWLRQmUHTXLUHVDEDFKHORUjVGHJUHHl
ZLWKUHVSHFWWRZKHWKHU'DLPOHU&KU\VOHUjVVWDWHGUHDVRQVDUH                  7KHSRVWLQJDOVRLQGLFDWHVKRZHYHUWKDWmVLJQLILFDQWUHOHYDQW
SUHWH[WIRUGLVFULPLQDWLRQ                                                   H[SHULHQFH PD\ EH FRQVLGHUHG LQ OLHX RI D GHJUHHl  7KH
                                                                              SRVLWLRQ IXUWKHU UHTXLUHV ILYH \HDUV RI mSURJUHVVLYHO\
                                                                              UHVSRQVLEOH H[SHULHQFH LQ VHFXULW\ RU ODERU UHODWLRQV
                                                                              PDQDJHPHQWl7KLUW\HLJKWSHRSOHDSSOLHGIRUWKHSRVLWLRQ
                                                                             LQFOXGLQJ +RSVRQ  8OWLPDWHO\ 0LFKDHO 6HSDQLF D ZKLWH
     0LFKLJDQ ODZ DOVR DFFHSWV VWDWLVWLFDO HYLGHQFH DV SURRI WKDW WKH
                                                                              PDOHZDVKLUHGWRILOOWKHSRVLWLRQ6WHSDQLDNVWDWHVWKDWKH
GHIHQGDQWjV OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ IRU LWV HPSOR\PHQW
GHFLVLRQV FRQVWLWXWHV SUHWH[W   6HH 'L[RQ Y :: *UDLQJHU ,QF 
                                                                              DQGWKHRWKHUGHFLVLRQPDNHUGHWHUPLQHGWKDW6HSDQLFZDVWKH
1:G   0LFK &W $SS  m7KH XVH RI VWDWLVWLFV PD\ EH          PRVWTXDOLILHGSHUVRQIRUWKHMREGHVSLWHWKHIDFWWKDWXQOLNH
UHOHYDQW LQ HVWDEOLVKLQJ D SULPD IDFLH FDVH RI GLVFULPLQDWLRQ RU LQ VKRZLQJ   +RSVRQ KH ODFNHG D EDFKHORUjV GHJUHH  $FFRUGLQJ WR
WKDW WKH SURIIHUHG UHDVRQV IRU D GHIHQGDQWjV FRQGXFW DUH SUHWH[WXDOl
     +RSVRQY'DLPOHU&KU\VOHU&RUS                1R       1R                     +RSVRQY'DLPOHU&KU\VOHU&RUS                       

6WHSDQLDNmODERUUHODWLRQVDFWLYLWLHVZRXOGEHDVLJQLILFDQW          DUH HQWLWOHG WR VXPPDU\ MXGJPHQW XQOHVV WKH SODLQWLIIV FDQ
FRPSRQHQWlRIWKHSRVLWLRQDQG6HSDQLFZDVFKRVHQIRUKLV             HLWKHUVKRZWKDWWKHGHIHQGDQWVjH[SODQDWLRQVDUHLQKHUHQWO\
mVLJQLILFDQW H[SHULHQFH DV D PDQDJHPHQW UHSUHVHQWDWLYH LQ        VXVSHFWRUWKHSODLQWLIIVSUHVHQWRWKHUGLUHFWRUFLUFXPVWDQWLDO
ODERUUHODWLRQVlZKLFK+RSVRQODFNHG,QDGGLWLRQ6WHSDQLDN         HYLGHQFHVXJJHVWLQJWKDWWKHSURIIHUHGUHDVRQVDUHQRWWUXH
QRWHVWKDW6HSDQLFZDVmUDWHGPRUHKLJKO\WKDQ0U+RSVRQ              7KXVE\SUHVHQWLQJVWDWLVWLFDOHYLGHQFHDORQJZLWK6ODWHUjV
LQKLVDQQXDOHYDOXDWLRQVl                                           WHVWLPRQ\+RSVRQKDVUDLVHGDJHQXLQHLVVXHZLWKUHVSHFWWR
                                                                       ZKHWKHU 'DLPOHU&KU\VOHUjV SURIIHUHG UHDVRQV IRU LWV
   )RXUWK LQ sXQH  +RSVRQ DSSOLHG IRU D VHFXULW\         HPSOR\PHQWGHFLVLRQVFRQVWLWXWHSUHWH[W
PDQDJHPHQWSRVLWLRQDW'DLPOHU&KU\VOHUjV'HWURLW&RPSOH[
7KHUHTXLUHPHQWVIRUWKLVMRELQFOXGHDEDFKHORUjVGHJUHHLQ              7KH&RXUWUHFRJQL]HVWKDWRQUHPDQG'HIHQGDQW$SSHOOHH
ORVVSUHYHQWLRQFULPLQDOMXVWLFHRUDUHODWHGILHOGDQGILYHWR     PD\ FKDOOHQJH YDULRXV DVSHFWV RI +RSVRQjV VWDWLVWLFV  $V
VHYHQ\HDUVH[SHULHQFHLQmVHFXULW\ILUHSUHYHQWLRQl)LIWHHQ         'DLPOHU&KU\VOHUSRLQWVRXWRQDSSHDO'U6DVHjVVWDWLVWLFVGR
HPSOR\HHVDSSOLHGLQFOXGLQJ+RSVRQ6WHSDQLDNVWDWHVWKDW            QRWLGHQWLI\WKHSHUFHQWDJHRI$IULFDQ$PHULFDQZRUNHUVZKR
KH DORQJ ZLWK WKH RWKHU GHFLVLRQPDNHU VHOHFWHG /DUU\         ZHUHTXDOLILHGIRUVXSHUYLVRU\DQGPDQDJHULDOSRVLWLRQVQRU
'XE\DNDZKLWHPDOHZKRPWKH\GHWHUPLQHGWREHmWKHEHVW             GR WKH\ LGHQWLI\ WKH QXPEHU RI $IULFDQ$PHULFDQV ZKR
FDQGLGDWHIRUWKHMREl'XE\DNKDGmWKHUHTXLVLWHGHJUHHDQG         DSSOLHGIRUVXFKSRVLWLRQV1RQHWKHOHVVm>D@WWKHVXPPDU\
KDV QHDUO\ WKLUW\ \HDUV RI H[SHULHQFH LQ VHFXULW\ LQFOXGLQJ   MXGJPHQWVWDJHDSODLQWLIILVQRWUHTXLUHGWRDQWLFLSDWHDQG
VWDII SRVLWLRQV DW 'DLPOHU&KU\VOHU KHDGTXDUWHUV DQG               UHEXW HYHU\ SRVVLEOH ZHDNQHVV LQ KLV RWKHUZLVH YDOLG
H[SHULHQFH DV D VHFXULW\ PDQDJHUl DW DQRWKHU FRPSDQ\            VWDWLVWLFDOHYLGHQFHl,GDWQ
IDFLOLW\6WHSDQLDNDOVRQRWHVWKDWWKHSRVLWLRQDPRXQWHGWRD
ODWHUDOPRYHIRU'XE\DNZKRKDGUHTXHVWHGDWUDQVIHUWRD               7KHUHIRUH WKLV &RXUW ILQGV WKDW 3ODLQWLII$SSHOODQW KDV
IDFLOLW\FORVHUWRKLVKRPH$FFRUGLQJWR6WHSDQLDN'XE\DNjV         UDLVHGDJHQXLQHLVVXHRIPDWHULDOIDFWZLWKUHVSHFWWRZKHWKHU
VHOHFWLRQ mDOORZHG >WKH FRPSDQ\@ WR DFFRPPRGDWH >KLV@            'HIHQGDQW$SSHOOHHjVSURIIHUHGUHDVRQVIRULWVHPSOR\PHQW
UHTXHVWl,QDGGLWLRQ6WHSDQLDNFODLPVWKDWZKLOH+RSVRQ            DFWLRQVZHUHSUHWH[WXDODQGKHUHE\5(9(56(6WKHGLVWULFW
PHW WKH EDVLF TXDOLILFDWLRQV IRU WKLV SRVLWLRQ KH ODFNHG      FRXUWjVMXGJPHQWJUDQWLQJVXPPDU\MXGJPHQWWR'HIHQGDQW
'XE\DNjVH[SHULHQFHDVDVHFXULW\PDQDJHUDQGZDVQRWDV               $SSHOOHH ZLWK UHVSHFW WR 3ODLQWLII$SSHOODQWjV FODLP RI
KLJKO\UDWHGLQKLVDQQXDOHYDOXDWLRQV                               GLVFULPLQDWLRQ EURXJKW SXUVXDQW WR 7LWOH 9,,  86&
                                                                       HH
  )LQDOO\+RSVRQDSSOLHGIRUWKHSRVLWLRQRI0DQDJHU2XWRI
6WDWH3ODQWV'DLPOHU&KU\VOHUjVSRVWLQJIRUWKLVMRELQGLFDWHV
WKDWDEDFKHORUjVGHJUHHLQORVVSUHYHQWLRQFULPLQDOMXVWLFH
RU D UHODWHG ILHOG LV UHTXLUHG mEXW PD\ EH RIIVHW E\ D
FRPELQDWLRQRIHGXFDWLRQFXUUHQWO\LQSURFHVVDQGFRPSDUDEOH
H[SHULHQFH LQ VHFXULW\ILUH SUHYHQWLRQl  7KH H[SHULHQFH
                                                                             
UHTXLUHPHQW LQFOXGHV VHYHQ WR WHQ \HDUV mRI SURJUHVVLYHO\                 7KH   &RXUW   DOVR    QRWHV   WKH   TXHVWLRQDEOH   EDVLV   RI   WKH   DOOHJHGO\

UHVSRQVLEOH DVVLJQPHQWV ZLWKLQ D SODQW VHFXULW\ IXQFWLRQ        OHJLWLPDWH FULWHULD WKDW VXSSRUW 'DLPOHU&KU\VOHUjV GHFLVLRQV ZLWK UHVSHFW

SUHIHUDEO\LQFOXGLQJPDQDJHULDODVVLJQPHQWVl)LIWHHQ        WR   WKH   SURPRWLRQV     IRU    ZKLFK    +RSVRQ    DSSOLHG    ,Q   SDUWLFXODU    HDFK

HPSOR\HHV DSSOLHG IRU WKH SRVLWLRQ LQFOXGLQJ +RSVRQ            HPSOR\HH ZKR ZDV VHOHFWHG IRU D MRE RYHU +RSVRQ ZDV QRWHG WR KDYH EHHQ
                                                                       UDWHG PRUH KLJKO\ RQ KLV DQQXDO HYDOXDWLRQ            7KH SDUWLHV GLG QRW SUHVHQW
8OWLPDWHO\ 6WHSDQLDN VHOHFWHG 7KRPDV .RQGUDWRZLF] D             HYLGHQFH H[SODLQLQJ KRZ VXFK HYDOXDWLRQV DUH FRQGXFWHG :LWKRXW KDYLQJ
ZKLWHPDOHWRILOOWKHSRVLWLRQEDVHGRQKLVFRQFOXVLRQWKDW         WKDW LQIRUPDWLRQ WKH &RXUW UHFRJQL]HV WKH SRVVLELOLW\ WKDW WKH DQQXDO
                                                                       HYDOXDWLRQV WKHPVHOYHV DUH LQKHUHQWO\ GLVFULPLQDWRU\
    +RSVRQY'DLPOHU&KU\VOHU&RUS                 1R       1R           +RSVRQY'DLPOHU&KU\VOHU&RUS            

RSHUDWLRQV LQ SDUWLFXODU KDV WHVWLILHG WKDW KH EHOLHYHG          .RQGUDWRZLF]ZDVWKHmEHVWTXDOLILHGlDSSOLFDQW:KHQKH
GLVFULPLQDWLRQWREHLQYROYHGFOHDUO\SURYLGHVVRPHHYLGHQFH            ZDV KLUHG .RQGUDWRZLF] ZDV LQ WKH SURFHVV RI JHWWLQJ D
WKDW WKLV ZDV WKH FDVH DQG WKDW 'HIHQGDQW$SSHOOHHjV            EDFKHORUjVGHJUHHDQGKDGDOPRVWWKLUW\\HDUVH[SHULHQFHDW
SURIIHUHGUHDVRQVIRULWVHPSOR\PHQWGHFLVLRQVZHUHIDOVH              WKH FRPSDQ\ LQFOXGLQJ PDQDJHULDO H[SHULHQFH  +RSVRQ
                                                                        KRZHYHUGLGQRWKDYHPDQDJHULDOH[SHULHQFH
   )LQDOO\+RSVRQSUHVHQWVVWDWLVWLFDOHYLGHQFHWKDWFUHDWHVD
JHQXLQH LVVXH RI PDWHULDO IDFW ZLWK UHVSHFW WR ZKHWKHU                             %3URFHGXUDO+LVWRU\
'DLPOHU&KU\VOHUjVQRQGLVFULPLQDWRU\UHDVRQLVSUHWH[W,Q
SDUWLFXODU +RSVRQ SUHVHQWV WKH DIILGDYLW RI 'U 6DVH ZKR         %DVHG RQ WKH IRUHJRLQJ DGYHUVH HPSOR\PHQW GHFLVLRQV
REVHUYHVWKDWRIWKHVHFXULW\JXDUGVDW'DLPOHU&KU\VOHU           +RSVRQ ILOHG VXLW DJDLQVW WKH FRPSDQ\ LQ $XJXVW 
DUH EODFN ZKLOH RQO\  RI WKH FRPSDQ\jV VHFXULW\           DOOHJLQJ WKDW KLV HPSOR\HU YLRODWHG 7LWOH 9,,  86&
PDQDJHUVDUHEODFN'U6DVHFRQFOXGHVWKDWWKLVGLVSDULW\LV          HHDQGWKH(OOLRWW/DUVHQ&LYLO5LJKWV$FW
VWDWLVWLFDOO\ VLJQLILFDQW DQG WKDW LW LQGLFDWHV WKDW $IULFDQ   0LFK &RPS /DZV   HW VHT E\ GLVFULPLQDWLQJ
$PHULFDQV DUH XQGHUUHSUHVHQWHG LQ VXSHUYLVRU\ DQG                 DJDLQVWKLPRQWKHEDVLVRIKLVUDFH,QKLVFRPSODLQW+RSVRQ
PDQDJHPHQWSRVLWLRQVLQWKHFRPSDQ\jVVHFXULW\RSHUDWLRQV              DOVR DOOHJHG WKDW WKH FRPSDQ\ UHWDOLDWHG DJDLQVW KLP IRU
                                                                        EULQJLQJKLVSULRUFRPSODLQWRIUDFHGLVFULPLQDWLRQ
   m:KHQ D SODLQWLIIjV VWDWLVWLFV LQGLFDWH D GLVSURSRUWLRQDWH
>HPSOR\PHQW@ UDWH IRU D SURWHFWHG JURXS WKHUH DUH WKUHH           $IWHU D SHULRG RI GLVFRYHU\ 'DLPOHU&KU\VOHU PRYHG IRU
SRVVLEOH H[SODQDWLRQV IRU WKH GLVFUHSDQF\ WKH RSHUDWLRQ RI      VXPPDU\MXGJPHQW)RUSXUSRVHVRIWKHPRWLRQWKHFRPSDQ\
OHJLWLPDWHVHOHFWLRQFULWHULDFKDQFHRUWKHGHIHQGDQWjVELDVl        FRQFHGHGWKDW+RSVRQKDGPDGHRXWDSULPDIDFLHFDVHRI
%DUQHVY*HQ&RUS,QF)GWK&LU             GLVFULPLQDWLRQ ZLWK UHVSHFW WR WKH HPSOR\PHQW DFWLRQV
FLWDWLRQV RPLWWHG  +RSVRQ KDV GHPRQVWUDWHG WKDW WKH           LGHQWLILHGLQKLVFRPSODLQW7KHFRPSDQ\WKHQSUHVHQWHGLWV
GLVSDULW\ EHWZHHQ WKH SHUFHQWDJH RI $IULFDQ$PHULFDQ               OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQV IRU LWV HPSOR\PHQW
VHFXULW\JXDUGVDQG$IULFDQ$PHULFDQPDQDJHUVLVQRWGXHWR             GHFLVLRQV DV GHVFULEHG E\ 6WHSDQLDN DQG VHW IRUWK DERYH
FKDQFHDV'U6DVHKDVIRXQGWKHGLIIHUHQFHWREHVWDWLVWLFDOO\        'DLPOHU&KU\VOHUWKHQDUJXHGWKDW+RSVRQFRXOGQRWUDLVHD
VLJQLILFDQW6HHLGDWILQGLQJWKDWZKHQDSODLQWLII        JHQXLQH LVVXH RI PDWHULDO IDFW ZLWK UHVSHFW WR ZKHWKHU WKH
GHPRQVWUDWHV D mVLJQLILFDQW VWDWLVWLFDO GLVSDULW\l LQ WKH         FRPSDQ\jV OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ IRU LWV
HPSOR\PHQW UDWH KH KDV SURYLGHG mVWURQJ HYLGHQFHl WKDW          DFWLRQV FRQVWLWXWHG SUHWH[W  ,Q DGGLWLRQ WKH FRPSDQ\
FKDQFHLVQRWWKHFDXVHRIWKHHPSOR\PHQWSDWWHUQ7KXVWKH          FRQWHQGHGWKDW+RSVRQFRXOGQRWVKRZDFDXVDOFRQQHFWLRQ
&RXUWLVOHIWWRGHWHUPLQHZKHWKHUWKHPRUHOLNHO\FDXVHRIWKH         EHWZHHQKLVSULRUGLVFULPLQDWLRQFRPSODLQWDQGDQ\DGYHUVH
GLVSDULW\LV'HIHQGDQW$SSHOOHHjVLPSURSHUELDVRUOHJLWLPDWH          HPSOR\PHQWDFWLRQ
VHOHFWLRQFULWHULD:HKROGWKDWZKHUHDVKHUHVLJQLILFDQW
VWDWLVWLFV DUH FRXSOHG ZLWK LQGHSHQGHQW FLUFXPVWDQWLDO                ,QUHVSRQVH+RSVRQDUJXHGWKDWKHKDGSUHVHQWHGVXIILFLHQW
HYLGHQFHRIGLVFULPLQDWLRQWKHSODLQWLIIKDVPHWKLVEXUGHQRI         HYLGHQFHWHQGLQJWRVKRZWKDWWKHFRPSDQ\jVVWDWHGUHDVRQV
GHPRQVWUDWLQJWKDWWKHVWDWLVWLFDOGLVSDULW\LVPRUHOLNHO\WKDQ        ZHUH SUHWH[WXDO  ,Q SDUWLFXODU +RSVRQ SRLQWHG WR WKH
QRW GXH WR WKH GHIHQGDQWjV ELDV DQG WKH GHIHQGDQW LV QRW     GHSRVLWLRQWHVWLPRQ\RI(WKHOEHUW6ODWHUm6ODWHUlDPDQDJHU
HQWLWOHGWRVXPPDU\MXGJPHQW6HHLGDWFRQFOXGLQJ              LQWKHVHFXULW\DUHDDQGRQHRI+RSVRQjVVXSHUYLVRUV:KHQ
WKDW ZKHQ LQ WKH IDFH RI VWDWLVWLFV GHIHQGDQWV SUHVHQW D    DVNHGZKHWKHUKHEHOLHYHGWKDW+RSVRQjVUDFHZDVDIDFWRULQ
OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ WR H[SODLQ HDFK              KLVQRWREWDLQLQJWKHMREVIRUZKLFKKHDSSOLHG6ODWHUUHSOLHG
DOOHJHGO\GLVFULPLQDWRU\HPSOR\PHQWDFWLRQWKHGHIHQGDQWV              m>L@Q P\ RSLQLRQ \HVl  +RSVRQ DOVR HPSKDVL]HG KLV RZQ
                                                                        TXDOLILFDWLRQV DQG DUJXHG WKDW mLW LV HYLGHQW WKDW >WKH
     +RSVRQY'DLPOHU&KU\VOHU&RUS               1R       1R           +RSVRQY'DLPOHU&KU\VOHU&RUS            

FRPSDQ\@WDLORUPDGHWKHMREVSHFLILFDWLRQVWRILWWKH>ZKLWH@        FRQFXUULQJm>7@KHHQWLUHSXUSRVHRIWKH0F'RQQHOO'RXJODV
SHUVRQZKRXOWLPDWHO\ZDVSURPRWHGLQWRWKHSRVLWLRQl              SULPD IDFLH FDVH LV WR FRPSHQVDWH IRU WKH IDFW WKDW GLUHFW
                                                                      HYLGHQFHRILQWHQWLRQDOGLVFULPLQDWLRQLVKDUGWRFRPHE\l
  )LQDOO\ +RSVRQ VXEPLWWHG DQ DIILGDYLW IURP sRKQ 6DVH       ,QOLJKWRIWKHVHFRQVLGHUDWLRQVWKH&RXUWILQGVWKDWDWWKH
3K'DQHFRQRPLVWDW2DNODQG8QLYHUVLW\,QKLVDIILGDYLW         YHU\OHDVWWKHFLUFXPVWDQFHVLQWKHPDWWHUVXEMXGLFHJLYHULVH
'U6DVHVWDWHGWKDWKHSHUIRUPHGDVWDWLVWLFDODQDO\VLVRIGDWD      WR D JHQXLQH LVVXH RI PDWHULDO IDFW DV WR ZKHWKHU
SURYLGHGE\'DLPOHU&KU\VOHUUHJDUGLQJWKHUDFLDOFRPSRVLWLRQ          'DLPOHU&KU\VOHUjV SURIIHUHG UHDVRQV DFWXDOO\ PRWLYDWHG LWV
RI WKH FRPSDQ\jV VHFXULW\ GHSDUWPHQW  +H FRPSDUHG WKH        HPSOR\PHQWGHFLVLRQV
QXPEHU RI VXSHUYLVRUV DQG PDQDJHUV WR WKH QXPEHU RI
VHFXULW\JXDUGVDQGIRXQGWKDWRIXQLRQVHFXULW\JXDUGV            ,QDGGLWLRQWRWKHIRUHJRLQJHYLGHQFH+RSVRQKDVSUHVHQWHG
HPSOR\HGE\'DLPOHU&KU\VOHUDUH$IULFDQ$PHULFDQZKLOH               WKH GHSRVLWLRQ WHVWLPRQ\ RI (WKHOEHUW 6ODWHU D %DQG 
RQO\  RI VXSHUYLVRUV DQG PDQDJHUV DUH $IULFDQ            PDQDJHULQ'DLPOHU&KU\VOHUjVVHFXULW\RSHUDWLRQ'XULQJKLV
$PHULFDQ%DVHGRQWKLVILQGLQJ'U6DVHRIIHUHGKLVRSLQLRQ        GHSRVLWLRQ6ODWHUWHVWLILHGWKDWLQKLVRSLQLRQ+RSVRQjVUDFH
mWKDWWKHUHH[LVWVDQXQGHUUHSUHVHQWDWLRQRIEODFNHPSOR\HHV         ZDVDIDFWRULQWKHFRPSDQ\jVGHFLVLRQVQRWWRKLUHKLPIRUWKH
LQWKH%DQGDQGFODVVLILFDWLRQVRIVXSHUYLVRUVDQG          MREVIRUZKLFKKHDSSOLHG$OWKRXJK6ODWHUjVRSLQLRQGRHVQRW
PDQDJHUV LQ WKH VHFXULW\ RSHUDWLRQV RI 'DLPOHU&KU\VOHU          FRQVWLWXWH GLUHFW HYLGHQFH RI GLVFULPLQDWLRQ DV 6ODWHU KDV
&RUSRUDWLRQl                                                       FRQFHGHGWKDWKHZDVQRWDGHFLVLRQPDNHUZLWKUHVSHFWWR
                                                                      WKHVH MRE RSHQLQJV LW FHUWDLQO\ FRQVWLWXWHV FLUFXPVWDQWLDO
   $IWHU KHDULQJ RUDO DUJXPHQW WKH GLVWULFW FRXUW JUDQWHG     HYLGHQFHRIGLVFULPLQDWLRQ$VD%DQGPDQDJHU6ODWHU
'DLPOHU&KU\VOHUjVPRWLRQIRUVXPPDU\MXGJPHQW7KHFRXUW             SUHVXPDEO\KDGNQRZOHGJHUHJDUGLQJWKHFRPSDQ\jVSUDFWLFHV
FRQFOXGHGWKDW+RSVRQZDVXQDEOHWRUDLVHDJHQXLQHLVVXHRI          DQGSROLFLHVIRUHPSOR\PHQWGHFLVLRQVDQGWKHTXDOLWLHVDQG
PDWHULDOIDFWDVWRZKHWKHU'DLPOHU&KU\VOHUjVVWDWHGUHDVRQV          H[SHULHQFH WKDW PXVW EH SRVVHVVHG E\ HPSOR\HHV DQG
IRULWVHPSOR\PHQWDFWLRQVZHUHSUHWH[WXDO)LUVWWKHGLVWULFW      PDQDJHUV ZLWKLQ WKH VHFXULW\ RSHUDWLRQ  )XUWKHUPRUH DV
FRXUWIRXQGWKDW6ODWHUjVWHVWLPRQ\ZDVQRWSUREDWLYHEHFDXVH         +RSVRQjVVXSHUYLVRU6ODWHUZDVDZDUHRIKLVVWUHQJWKVDQG
6ODWHU DGPLWWHG WKDW KH KDG QRWKLQJ WR GR ZLWK WKH KLULQJ   ZHDNQHVVHV DQG KRZ KH PLJKW SHUIRUP LQ WKH YDULRXV
GHFLVLRQVLQTXHVWLRQ6HFRQGWKHFRXUWUHMHFWHG+RSVRQjV           SRVLWLRQVIRUZKLFKKHDSSOLHG,QOLJKWRIWKLVNQRZOHGJH
DVVHUWLRQWKDWWKHMREVSHFLILFDWLRQVLQTXHVWLRQZHUHmWDLORU       6ODWHU ZDV QR GRXEW DEOH WR IRUP D FRPSHWHQW RSLQLRQ
PDGHlWRVXLWWKHSHUVRQXOWLPDWHO\VHOHFWHGILQGLQJWKDWWKLV       UHJDUGLQJ ZK\ +RSVRQ ZDV SDVVHG RYHU IRU FHUWDLQ MREV
DOOHJDWLRQmLVQRWVXSSRUWHGE\HYLGHQFHl7KLUGWKHFRXUW          &HUWDLQO\ DW WULDO +RSVRQ ZLOO KDYH WR GHPRQVWUDWH WKDW
KHOGWKDWWKHVWDWLVWLFDOHYLGHQFHSUHVHQWHGE\+RSVRQGLGQRW        6ODWHUjVRSLQLRQLVFRQQHFWHGWRWKHGHFLVLRQPDNHUVjDFWXDO
GHPRQVWUDWH SUHWH[W  $FFRUGLQJ WR WKH GLVWULFW FRXUW WKH    DWWLWXGHV6HHsDFNO\QY6FKHULQJ3ORXJK+HDOWKFDUH3URGV
VWDWLVWLFV ZHUH mLQFRPSOHWHl EHFDXVH WKH\ IDLOHG WR UHIOHFW   6DOHV&RUS)GWK&LUVWDWLQJWKDW
mWKHQXPEHURI$IULFDQ$PHULFDQDSSOLFDQWVIRUWKRVHMREVRU          IRUDOD\ZLWQHVVjVRSLQLRQWHVWLPRQ\WREHDGPLVVLEOHWKH
WKHLUTXDOLILFDWLRQVl)LQDOO\WKHFRXUWIRXQGmQRHYLGHQFHl        RSLQLRQ PXVW EH UDWLRQDOO\ EDVHG RQ WKH ZLWQHVVjV
WKDW DQ\ DGYHUVH HPSOR\PHQW DFWLRQ ZDV EDVHG XSRQ              SHUFHSWLRQV )HD]HOO Y 7URSLFDQD 3URGV ,QF  )G
UHWDOLDWLRQ IRU +RSVRQjV SUHYLRXVO\ ILOHG FRPSODLQW RI UDFH    WK&LUILQGLQJWKDWDPDQDJHUjVRSLQLRQ
GLVFULPLQDWLRQ7KHGLVWULFWFRXUWHQWHUHGMXGJPHQWLQIDYRU         DERXW KLV VXSHULRUVj DFWLRQV LV LUUHOHYDQW XQOHVV FOHDUO\
RIWKH'HIHQGDQW$SSHOOHHRQsDQXDU\+RSVRQQRZ            FRQQHFWHG WR WKH VXSHULRUVj DWWLWXGHV  $W WKH VXPPDU\
DSSHDOVIURPWKDWMXGJPHQW                                          MXGJPHQWVWDJHKRZHYHUWKHIDFWWKDWD%DQGPDQDJHU
                                                                      ZLWK NQRZOHGJH DERXW WKH FRPSDQ\ DQG WKH VHFXULW\
    +RSVRQY'DLPOHU&KU\VOHU&RUS                     1R     1R            +RSVRQY'DLPOHU&KU\VOHU&RUS              

KLVSULRUPDQDJHPHQWH[SHULHQFH6WHSDQLDNIRUUHDVRQVQRW                             ,,67$1'$5'2)5(9,(:
HYLGHQFHG LQ WKH UHFRUG FRPSOHWHO\ GLVFRXQWHG DQ\
PDQDJHPHQWH[SHULHQFHWKDW+RSVRQKDGDVZHOODV+RSVRQjV                  $GLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWLVVXEMHFWWR
EDFKHORUjVDQGPDVWHUjVGHJUHHV                                        GHQRYRUHYLHZE\WKLV&RXUW3HWHUVY/LQFROQ(OHF&R
                                                                          )GWK&LUFLWDWLRQVRPLWWHG
   ,QHDFKRIWKHIRUHJRLQJLQVWDQFHVWKHDOOHJHGOHJLWLPDWH
QRQGLVFULPLQDWRU\ UHDVRQ ZDV YDJXH IDLOHG WR VSHFLI\ WKH            6XPPDU\ MXGJPHQW LV DSSURSULDWH m>L@I WKH SOHDGLQJV
PDQQHULQZKLFKWKHZKLWHHPSOR\HHVZHUHEHWWHUTXDOLILHG                GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQV RQ
RU WKH GHJUHHV RI GLIIHUHQFH LQ WKH DQQXDO HYDOXDWLRQV           ILOH WRJHWKHU ZLWK WKH DIILGDYLWV LI DQ\ VKRZ WKHUH LV QR
0RUHRYHU LW LV YLUWXDOO\ XQIDWKRPDEOH JLYHQ +RSVRQjV              JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKHPRYLQJSDUW\LV
HGXFDWLRQDQGPDQDJHPHQWH[SHULHQFHWKDWKHZDVQRWHYHQ                 HQWLWOHG WR MXGJPHQW DV D PDWWHU RI ODZl  )(' 5 &,9 3
LQWHUYLHZHGIRUDQ\RIWKHVHSRVLWLRQV,QGHHGDUHDVRQDEOH             F7KHPRYDQWKDVWKHEXUGHQRIHVWDEOLVKLQJWKDWWKHUH
MXURUFRXOGILQGWKDWWKHVHFLUFXPVWDQFHVEHVSHDNDSDWWHUQRU            DUH QR JHQXLQH LVVXHV RI PDWHULDO IDFW ZKLFK PD\ EH
SUDFWLFHRIGLVFULPLQDWLRQZKLFKUHVXOWHGLQWKH3ODLQWLIIjVQRW          DFFRPSOLVKHG E\ GHPRQVWUDWLQJ WKDW WKH QRQPRYLQJ SDUW\
EHLQJSURPRWHG,QRXUYLHZWKLVUHFRUGFRQWDLQVDJHQXLQH              ODFNV HYLGHQFH WR VXSSRUW DQ HVVHQWLDO HOHPHQW RI LWV FDVH
LVVXH RI PDWHULDO IDFW WKDW PDNHV VXPPDU\ MXGJPHQW                 &HORWH[ &RUS Y &DWUHWW  86   
LQDSSURSULDWH                                                         %DUQKDUWY3LFNUHO6FKDHIIHU	(EHOLQJ&R)G
                                                                          WK&LU,QUHVSRQVHWKHQRQPRYLQJSDUW\
   :H UHFRJQL]H WKDW m7LWOH 9,, GRHV QRW GLPLQLVK ODZIXO          PXVWSUHVHQWmVLJQLILFDQWSUREDWLYHHYLGHQFHlWRVKRZWKDW
WUDGLWLRQDO PDQDJHPHQW SUHURJDWLYHV LQ FKRRVLQJ DPRQJ                mWKHUH LV >PRUH WKDQ@ VRPH PHWDSK\VLFDO GRXEW DV WR WKH
TXDOLILHGFDQGLGDWHVl:UHQQY*RXOG)G                 PDWHULDO IDFWVl0RRUHY3KLOLS0RUULV&RV)G
WK&LU:HDOVRUHFRJQL]HKRZHYHUWKDW                       WK&LUm>6@XPPDU\MXGJPHQWZLOOQRWOLHLI
                                                                          WKHGLVSXWHLVDERXWDPDWHULDOIDFWWKDWLVµJHQXLQHjWKDWLVLI
  µ>G@LVFULPLQDWLRQYLFWLPVRIWHQFRPHWRWKHOHJDOSURFHVV               WKH HYLGHQFH LV VXFK WKDW D UHDVRQDEOH MXU\ FRXOG UHWXUQ D
  ZLWKRXW ZLWQHVVHV DQG ZLWK OLWWOH GLUHFW HYLGHQFH                 YHUGLFW IRU WKH QRQPRYLQJ SDUW\l  $QGHUVRQ Y /LEHUW\
  LQGLFDWLQJ WKH SUHFLVH QDWXUH RI WKH ZURQJV WKH\ KDYH           /REE\,QF86VHHDOVR0DWVXVKLWD
  VXIIHUHGj     &DVHV FKDUJLQJ GLVFULPLQDWLRQ DUH             (OHF,QGXV&RY=HQLWK5DGLR&RUS86
  XQLTXHO\ GLIILFXOW WR SURYH DQG RIWHQ GHSHQG XSRQ                 FRQFOXGLQJ WKDW VXPPDU\ MXGJPHQW LV DSSURSULDWH
  FLUFXPVWDQWLDOHYLGHQFHµ7KLVLVWUXHLQSDUWEHFDXVH            ZKHQWKHHYLGHQFHFRXOGQRWOHDGWKHWULHURIIDFWWRILQGIRU
     GLVFULPLQDWLRQ    LV RIWHQ VXEWOHj    µ>$@Q   WKHQRQPRYLQJSDUW\
  HPSOR\HUZKRNQRZLQJO\GLVFULPLQDWHVPD\OHDYHQR
  ZULWWHQUHFRUGVUHYHDOLQJWKHIRUELGGHQPRWLYHDQGPD\                     ,QHYDOXDWLQJDPRWLRQIRUVXPPDU\MXGJPHQWWKHHYLGHQFH
  FRPPXQLFDWH LW RUDOO\ WR QR RQHj     7KH GLVWLQFW        PXVWEHYLHZHGLQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQPRYLQJ
  PHWKRGRISURRILQHPSOR\PHQWGLVFULPLQDWLRQFDVHV                SDUW\$GLFNHVY6+.UHVV	&R86
  DURVHRXWRIWKH6XSUHPH&RXUWjVUHFRJQLWLRQWKDWGLUHFW                7KHQRQPRYLQJSDUW\KRZHYHUmPD\QRWUHVWXSRQLWVPHUH
  HYLGHQFH RI DQ HPSOR\HUjV PRWLYDWLRQ ZLOO RIWHQ EH               DOOHJDWLRQVEXWPXVWVHWIRUWKVSHFLILFIDFWVVKRZLQJ
  XQDYDLODEOHRUGLIILFXOWWRDFTXLUH                                   WKDWWKHUHLVDJHQXLQHLVVXHIRUWULDOl)(' 5 &,9 3H
                                                                          VHH&HORWH[86DW6HDUF\Y&LW\RI'D\WRQ
6KHULGDQY(,'X3RQWGH1HPRXUV	&R)G                  )G   WK &LU   )XUWKHUPRUH WKH PHUH
G&LUFLWDWLRQVRPLWWHGVHH3ULFH:DWHUKRXVH             H[LVWHQFH RI D VFLQWLOOD RI HYLGHQFH LQ VXSSRUW RI WKH QRQ
Y +RSNLQV  86    2j&RQQRU s
    +RSVRQY'DLPOHU&KU\VOHU&RUS                 1R       1R           +RSVRQY'DLPOHU&KU\VOHU&RUS           

PRYLQJSDUW\jVSRVLWLRQZLOOQRWEHVXIILFLHQWWKHUHPXVWEH           RUODERUUHODWLRQVPDQDJHPHQW$FFRUGLQJWRFRXQVHODWRUDO
HYLGHQFHRQZKLFKWKHMXU\FRXOGUHDVRQDEO\ILQGIRUWKHQRQ           DUJXPHQWDQGQRWFRQWUDGLFWHGE\WKHUHFRUG+RSVRQKDGWKLV
PRYLQJ SDUW\  $QGHUVRQ  86 DW  &RSHODQG Y          H[SHULHQFH  $V QRWHG DERYH +RSVRQ KDG QRW RQO\ D
0DFKXOLV)GWK&LU                            EDFKHORUjV GHJUHH EXW D PDVWHUjV GHJUHH  1RQHWKHOHVV
                                                                        6WHSDQLDN KLUHG D ZKLWH PDOH RQH 0LFKDHO 6HSDQLF ZKR
                      ,,,',6&866,21                                  ODFNHG D EDFKHORUjV GHJUHH EXW LQ 6WHSDQLDNjV ZRUGV KDG
                                                                        mVLJQLILFDQW H[SHULHQFH DV D PDQDJHPHQW UHSUHVHQWDWLYH LQ
  2QDSSHDO+RSVRQGRHVQRWFKDOOHQJHWKHGLVWULFWFRXUWjV             ODERUUHODWLRQVl2QFHDJDLQ6WHSDQLDNUHOLHGRQWKHIDFWWKDW
UXOLQJ ZLWK UHVSHFW WR WZR RI WKH VHYHQ DOOHJHGO\               6HSDQLF ZDV UDWHG PRUH KLJKO\ WKDQ +RSVRQ LQ KLV DQQXDO
GLVFULPLQDWRU\HPSOR\PHQWDFWLRQVWKDWZHUHEURXJKWEHIRUH              HYDOXDWLRQVDOWKRXJKWKH'HIHQGDQWIDLOHGWRRIIHUHYLGHQFH
WKHGLVWULFWFRXUWQRUGRHVKHFKDOOHQJHWKHGLVWULFWFRXUWjV          RIWKLVKLJKHUUDWLQJ
UXOLQJZLWKUHVSHFWWRKLVUHWDOLDWLRQFODLP7KXVWKRVHFODLPV
DUHGHHPHGDEDQGRQHG6HH%R\GY)RUG0RWRU&R                     )RXUWK LQ sXQH  +RSVRQ DSSOLHG IRU D VHFXULW\
)GWK&LUFRQFOXGLQJWKDWDQ\LVVXHVQRW           PDQDJHPHQW SRVLWLRQ  7KLV MRE DOVR UHTXLUHG D EDFKHORUjV
UDLVHG E\ WKH DSSHOODQW ZLWK UHVSHFW WR WKH GLVWULFW FRXUWjV   GHJUHH DQG ILYH WR VHYHQ \HDUV H[SHULHQFH LQ VHFXULW\ILUH
UXOLQJDUHFRQVLGHUHGDEDQGRQHGRQDSSHDODQGQRWUHYLHZDEOH            SUHYHQWLRQ6WHSDQLDNVHOHFWHG/DUU\'XE\DNDZKLWHPDOH
E\ WKLV &RXUW  3HQGLQJ IRU UHYLHZ LV WKH GLVWULFW FRXUWjV   ZKRP KH GHWHUPLQHG WR EH WKH EHVW FDQGLGDWH IRU WKH MRE
GLVSRVLWLRQRI+RSVRQjVGLVSDUDWHWUHDWPHQWFODLPVUHJDUGLQJ            'XE\DNKDGDGHJUHHDQGDFRPSDUDEOHDPRXQWRIH[SHULHQFH
WKHDERYHILYHHPSOR\PHQWDFWLRQVEURXJKWSXUVXDQWWR7LWOH            LQVHFXULW\LQFOXGLQJVWDIISRVLWLRQVDW'DLPOHU&KU\OVHUDQG
9,,DQG0LFKLJDQjV(OOLRWW/DUVHQ&LYLO5LJKWV$FW                     DVDVHFXULW\PDQDJHUDWDQRWKHUFRPSDQ\IDFLOLW\6WHSDQLDN
                                                                        LQGLFDWHG WKDW LQ DGGLWLRQ WR WKH TXDOLILFDWLRQV DZDUGLQJ
           $'LUHFW(YLGHQFHRI'LVFULPLQDWLRQ                        'XE\DNWKHMREDOORZHGWKHFRPSDQ\WRKRQRUKLVUHTXHVWIRU
                                                                        DWUDQVIHUWRDIDFLOLW\FORVHUWRKRPH$GGLWLRQDOO\6WHSDQLDN
  8QGHUERWK7LWOH9,,DQG0LFKLJDQODZDSODLQWLIIPD\VHW            DJDLQLQWRQHGWKDW'XE\DNUDWHGPRUHKLJKO\LQKLVDQQXDO
IRUWK D SULPD IDFLH FDVH RI HPSOR\PHQW GLVFULPLQDWLRQ E\        HYDOXDWLRQVWKDQGLG+RSVRQ2WKHUWKDQ6WHSDQLDNjVFODLP
SUHVHQWLQJGLUHFWHYLGHQFHRIWKHGHIHQGDQWjVGLVFULPLQDWRU\            WKHUHZDVQRHYLGHQFHWKDW'XE\DNUDWHGPRUHKLJKO\WKDQ
LQWHQW1JX\HQY&LW\RI&OHYHODQG)GWK            +RSVRQ QRU ZDV WKHUH DQ\ HYLGHQFH WKDW 6WHSDQLDN
&LUFLWLQJ3ULFH:DWHUKRXVHY+RSNLQV86            FRQVLGHUHG +RSVRQjV UHTXHVW IRU D VXSHUYLVRU\ UROH LQ WKH
SOXUDOLW\RSLQLRQ+DUULVRQY2OGH)LQ&RUS           VDPHYHLQWKDWKHFRQVLGHUHG'XE\DNjVUHTXHVWWRPRYHFORVHU
1:G0LFK&W$SSKROGLQJWKDWZKHQ               WRKRPH
WKHSODLQWLIISUHVHQWVGLUHFWHYLGHQFHRIGLVFULPLQDWLRQIHGHUDO
ODZ SURYLGHV DSSURSULDWH JXLGDQFH IRU DQDO\]LQJ FODLPV              )LQDOO\+RSVRQDSSOLHGIRUWKHSRVLWLRQRIPDQDJHURIRXW
EURXJKW XQGHU WKH 0LFKLJDQ &LYLO 5LJKWV $FW  m>'@LUHFW        RIVWDWH SODQWV ZKLFK UHTXLUHG D EDFKHORUjV GHJUHH EXW
HYLGHQFH LV WKDW HYLGHQFH ZKLFK LI EHOLHYHG UHTXLUHV WKH      mZKLFKPD\EHRIIVHWE\DFRPELQDWLRQRIHGXFDWLRQFXUUHQWO\
FRQFOXVLRQ WKDW XQODZIXO GLVFULPLQDWLRQ ZDV DW OHDVW D           LQ SURJUHVV DQG FRPSDUDEOH H[SHULHQFH LQ VHFXULW\ILUH
PRWLYDWLQJ IDFWRU LQ WKH HPSOR\HUjV DFWLRQVl  sDFNO\Q Y       SUHYHQWLRQl  +RSVRQ RI FRXUVH PHW WKH HGXFDWLRQ
6FKHULQJ3ORXJK +HDOWKFDUH 3URGV 6DOHV &RUS  )G           UHTXLUHPHQW EXW 6WHSDQLDN JDYH WKH SRVLWLRQ WR 7KRPDV
WK&LUFLWDWLRQVRPLWWHG                         .RQGUDWRZLF]DZKLWHPDOHZKRGLGQRWKDYHDEDFKHORUjV
                                                                        GHJUHH EXW ZDV LQ WKH SURFHVV RI JHWWLQJ RQH  6WHSDQLDN
 +RSVRQ FRQWHQGV WKDW KH SUHVHQWHG GLUHFW HYLGHQFH RI            IRXQG.RQGUDWRZLF]WKHEHVWTXDOLILHGDSSOLFDQWEHFDXVHRI
'DLPOHU&KU\VOHUjV GLVFULPLQDWLRQ E\ YLUWXH RI 6ODWHUjV
       +RSVRQY'DLPOHU&KU\VOHU&RUS               1R       1R           +RSVRQY'DLPOHU&KU\VOHU&RUS            

LQ VHFXULW\ ILUH SUHYHQWLRQ  7KH 3ODLQWLII QRW RQO\ KDG WKH   GHSRVLWLRQWHVWLPRQ\WKDWLQKLVRSLQLRQ+RSVRQjVUDFHZDV
UHTXLUHGEDFKHORUjVGHJUHHEXWDOVRKDGDPDVWHUjVGHJUHH,Q          D IDFWRU LQ WKH FRPSDQ\jV GHFLVLRQ WR GHQ\ KLP WKH
DGGLWLRQ WKH 'HIHQGDQW FRQFHGHG WKDW +RSVRQ KDG WKH              SURPRWLRQV IRU ZKLFK KH DSSOLHG  $OWKRXJK 6ODWHU LV D
UHTXLUHGVXSHUYLVRU\H[SHULHQFH'HVSLWHWKHIDFWWKDW+RSVRQ           PDQDJHU LQ WKH FRPSDQ\ KH DGPLWWHG WKDW KH KDG QR
PHW WKHVH UHTXLUHPHQWV 'DLPOHU&KU\VOHU XOWLPDWHO\ FKRVH            LQYROYHPHQWLQWKHGHFLVLRQPDNLQJSURFHVVZLWKUHVSHFWWR
:DUUHQ+DZNLQVDZKLWHPDOHWRILOOWKHSRVLWLRQEHFDXVH               WKHSDUWLFXODUMREVDWLVVXH)XUWKHUPRUHKHGLGQRWUHYHDOWKH
mKHKDGPDQDJHULDOH[SHULHQFHWKDW+RSVRQODFNHGlDQGKH                 EDVLV IRU KLV RSLQLRQ  7KXV ZKLOH 6ODWHUjV RSLQLRQ PD\
mUDWHG PRUH KLJKO\ WKDQ 0U +RSVRQ LQ KLV DQQXDO                 FRQVWLWXWHFLUFXPVWDQWLDOHYLGHQFHRIGLVFULPLQDWLRQHYHQLI
HYDOXDWLRQl7KH'HIHQGDQWGLGQRWVWDWHQRULVWKHUHFRUG             EHOLHYHG LW GRHV QRW UHTXLUH WKH FRQFOXVLRQ WKDW XQODZIXO
FOHDUDVWRWKHPDQQHULQZKLFK+DZNLQVUDWHGPRUHKLJKO\               GLVFULPLQDWLRQZDVDPRWLYDWLQJIDFWRULQ'DLPOHU&KU\VOHUjV
WKDQ +RSVRQ  1RU GLG WKH 'HIHQGDQW VWDWH ZKDW W\SH RI         DFWLRQV  6HH 1JX\HQ  )G DW  VWDWLQJ WKDW GLUHFW
PDQDJHULDOH[SHULHQFH+DZNLQVKDGWKDW+RSVRQODFNHG                    HYLGHQFHLQFOXGHVDGHFLVLRQPDNHUjVH[SUHVVVWDWHPHQWRID
                                                                         GHVLUHWRWDNHDFWLRQDJDLQVWHPSOR\HHVZKRDUHPHPEHUVRI
   6LPLODUO\LQ1RYHPEHUZKHQ+RSVRQDSSOLHGIRUD                DSURWHFWHGFODVV
WUDLQLQJDGPLQLVWUDWRUSRVLWLRQZKLFKUHTXLUHGDEDFKHORUjV
GHJUHHLQFULPLQDOMXVWLFHHGXFDWLRQRUDUHODWHGILHOGDORQJ           7KHUHIRUH WKH GLVWULFW FRXUW SURSHUO\ FRQFOXGHG WKDW
ZLWK ILYH \HDUV VXSHUYLVRU\ H[SHULHQFH LQ mVHFXULW\ILUH           3ODLQWLII$SSHOODQWIDLOHGWRUDLVHDJHQXLQHLVVXHRIPDWHULDO
SUHYHQWLRQlKHZDVUHMHFWHGIRUHVVHQWLDOO\WKHVDPHUHDVRQ            IDFWE\SUHVHQWLQJGLUHFWHYLGHQFHRI'HIHQGDQW$SSHOOHHjV
6WHSDQLDN WKH GHFLVLRQ PDNHU FKRVH D ZKLWH PDOH 6HDQ          GLVFULPLQDWRU\LQWHQW
sR\FHZKRPKHFRQVLGHUHGPRUHTXDOLILHGEHFDXVHsR\FHKDG
H[SHULHQFHWUDLQLQJVHFXULW\HPSOR\HHVDVDVHFXULW\PDQDJHU                  %&LUFXPVWDQWLDO(YLGHQFHRI'LVFULPLQDWLRQ
ZKLOH+RSVRQDOOHJHGO\ODFNHGWKDWH[SHULHQFH7KHUHFRUG
UHIOHFWVKRZHYHUWKDWGXULQJRQHSHULRGZLWKWKHFRPSDQ\                                         7LWOH9,,
+RSVRQKDGDFWXDOO\VXSHUYLVHGSHUVRQVZKRWUDLQHGVHFXULW\
HPSOR\HHV$GGLWLRQDOO\6WHSDQLDNFRQWHQGHGWKDWsR\FHZDV                7KHDQDO\WLFDOIUDPHZRUNJRYHUQLQJ7LWOH9,,FDVHVLQWKH
UDWHG PRUH KLJKO\ WKDQ +RSVRQ LQ KLV DQQXDO HYDOXDWLRQ o        DEVHQFH RI GLUHFW HYLGHQFH RI GLVFULPLQDWLRQ LV ZHOO
VHHPLQJO\DPDQWUDIRU6WHSDQLDNLQDUWLFXODWLQJKLVUHDVRQV             HVWDEOLVKHG)LUVWWKHSODLQWLIIPXVWVHWIRUWKDSULPDIDFLH
IRUQRWKDYLQJJLYHQ+RSVRQDQ\RQHRIWKHVHILYHSRVLWLRQV             FDVH ZKLFK JLYHV ULVH WR DQ LQIHUHQFH RI GLVFULPLQDWLRQ
2QFHDJDLQ'HIHQGDQWIDLOHGWRLQGLFDWHWKHH[WHQWWRZKLFK             7H[DV'HSjWRI&PW\$IIDLUVY%XUGLQH86
sR\FHjVHYDOXDWLRQVZHUHEHWWHUWKDQ+RSVRQjV                         FLWLQJ0F'RQQHOO'RXJODV&RUSY*UHHQ
                                                                         86VHH1HZPDQY)HG([SUHVV&RUS
   2Q 0DUFK   +RSVRQ DSSOLHG IRU D SRVLWLRQ RI          )GWK&LUVWDWLQJWKDWWRHVWDEOLVKDSULPD
VXSSRUWVHUYLFHVDQDO\VWZKLFKUHTXLUHGDEDFKHORUjVGHJUHH            IDFLHFDVHD7LWOH9,,SODLQWLII PXVWVKRZWKDWKHLVD
EXW QRWHG WKDW VLJQLILFDQW UHOHYDQW H[SHULHQFH PD\ EH             PHPEHURIDSURWHFWHGFODVVWKDWKHZDVTXDOLILHGIRUWKH
FRQVLGHUHGLQOLHXRIWKHGHJUHH7KHSRVLWLRQDOVRUHTXLUHG            MREWKDWKHVXIIHUHGDQDGYHUVHHPSOR\PHQWGHFLVLRQDQG
ILYH\HDUVRISURJUHVVLYHO\UHVSRQVLEOHH[SHULHQFHLQVHFXULW\           WKDWWKHMREZDVJLYHQWRDSHUVRQRXWVLGHKLVSURWHFWHG
                                                                         FODVV2QFHWKHSODLQWLIIHVWDEOLVKHVDSULPDIDFLHFDVHWKH
                                                                         EXUGHQ VKLIWV WR WKH GHIHQGDQW WR RIIHU D OHJLWLPDWH QRQ
                                                                         GLVFULPLQDWRU\UHDVRQIRUWKHDGYHUVHHPSOR\PHQWDFWLRQDW
                                                                        LVVXH%XUGLQH86DWFLWLQJ0F'RQQHOO'RXJODV
     'XULQJ RUDO DUJXPHQW GHIHQVH FRXQVHO FRQFHGHG WKDW +RSVRQ KDG
mH[FHOOHQWl DQQXDO HYDOXDWLRQV                                          86DW,IWKHGHIHQGDQWPHHWVWKLVEXUGHQWKHQWKH
       +RSVRQY'DLPOHU&KU\VOHU&RUS                     1R         1R              +RSVRQY'DLPOHU&KU\VOHU&RUS                 

EXUGHQ RI SURGXFWLRQ VKLIWV EDFN WR WKH SODLQWLII WR                     'LFN &R  )G   WK &LU  FLWDWLRQ
GHPRQVWUDWHWKDWWKHSURIIHUHGUHDVRQLVDSUHWH[W,GFLWLQJ                 RPLWWHG  7KLV &RXUW ILQGV WKDW +RSVRQ KDV SUHVHQWHG
0F'RQQHOO 'RXJODV  86 DW   :KHQ WKH EXUGHQ                   HYLGHQFHRQWKHEDVLVRIZKLFKDUHDVRQDEOHMXURUFRXOGILQG
VKLIWVEDFNWRWKHSODLQWLIIDOWKRXJKKHPXVWFRPHIRUZDUG                      WKDW 'DLPOHU&KU\VOHUjV SURIIHUHG UHDVRQV  GLG QRW DFWXDOO\
ZLWKHYLGHQFHWKDWWKHFRPSDQ\jVUHDVRQIRUWKHHPSOR\PHQW                       PRWLYDWHLWVHPSOR\PHQWGHFLVLRQV
DFWLRQLVIDOVHKHQHHGQRWSUHVHQWLQGHSHQGHQWHYLGHQFHWKDW
WKH SURIIHUHG UHDVRQ LV SUHWH[W IRU UDFLDO GLVFULPLQDWLRQ                   +RSVRQ KDV SUHVHQWHG HYLGHQFH WKDW KH DSSOLHG IRU ILYH
5HHYHVY6DQGHUVRQ3OXPELQJ3URG,QF86                      SRVLWLRQV IRU ZKLFK 'HIHQGDQW$SSHOOHH FRQFHGHV KH ZDV
 m>$@ SODLQWLIIjV SULPD IDFLH FDVH FRPELQHG ZLWK                  TXDOLILHGDQGIRUZKLFKKHZDVUHMHFWHGEHIRUHKHZDVHYHQ
VXIILFLHQW HYLGHQFH WR ILQG WKDW WKH HPSOR\HUjV DVVHUWHG                  JLYHQDQLQWHUYLHZ,WVWUDLQVFUHGXOLW\WRFRQFOXGHWKDWQRW
MXVWLILFDWLRQLVIDOVHPD\SHUPLWWKHWULHURIIDFWWRFRQFOXGH                 RQFHEXWILYHWLPHVWKHRWKHUHPSOR\HHVZKRDSSOLHGIRUWKH
WKDWWKHHPSOR\HUXQODZIXOO\GLVFULPLQDWHGl                                  RSHQ SRVLWLRQV ZHUH VR VLJQLILFDQWO\ PRUH TXDOLILHG WKDQ
                                                                                 +RSVRQ WKDW KH ZDV QRW HYHQ ZRUWK\ RI DQ LQWHUYLHZ  $
   +HUHWKHUHLVQRGLVSXWHWKDW+RSVRQKDVVHWIRUWKDSULPD                   UHYLHZ RI HDFK LQVWDQFH LQ ZKLFK +RSVRQ ZDV UHMHFWHG LV
IDFLHFDVH1RUGRWKHSDUWLHVGLVSXWHWKDW'DLPOHU&KU\VOHU                     WHOOLQJ
KDVSUHVHQWHGDOHJLWLPDWHQRQGLVFULPLQDWRU\UHDVRQIRULWV
HPSOR\PHQWGHFLVLRQV+RSVRQjVFKLHIFRPSODLQWRQDSSHDO                          )LUVW LQ $XJXVW  +RSVRQ DSSOLHG IRU D %DQG 
LVWKDWWKHGLVWULFWFRXUWHUUHGLQUXOLQJWKDW+RSVRQIDLOHGWR                 VXSHUYLVRU\SRVLWLRQDVDVHFXULW\PDQDJHUZKLFKUHTXLUHGD
UDLVH DQ LVVXH RI IDFW ZLWK UHVSHFW WR ZKHWKHU                           EDFKHORUjV GHJUHH LQ ORVV SUHYHQWLRQ FULPLQDO MXVWLFH RU D
'DLPOHU&KU\VOHUjV VWDWHG UHDVRQV IRU WKH HPSOR\PHQW                         UHODWHGILHOGDQGILYHWRVHYHQ\HDUVRIVXSHUYLVRU\H[SHULHQFH
GHFLVLRQVDWLVVXHZHUHSUHWH[WXDO
  m$SODLQWLIIFDQGHPRQVWUDWHSUHWH[WE\VKRZLQJWKDWWKH                           
                                                                                        +RSVRQ KDV DOVR UDLVHG RQH IDFWXDO LVVXH ZLWK UHVSHFW WR WKH UHDVRQV
SURIIHUHGUHDVRQKDVQREDVLVLQIDFWGLGQRWDFWXDOO\                  VHW IRUWK E\ 6WHSDQLDN IRU 'DLPOHU&KU\VOHUjV HPSOR\PHQW GHFLVLRQV
PRWLYDWH WKH GHIHQGDQWjV FKDOOHQJHG FRQGXFW RU  ZDV                   6SHFLILFDOO\ +RSVRQ SRLQWV RXW WKDW :DUUHQ +DZNLQV WHVWLILHG GXULQJ KLV
LQVXIILFLHQWWRZDUUDQWWKHFKDOOHQJHGFRQGXFWl'HZVY$%                   GHSRVLWLRQ WKDW KH ZDV KLUHG DV WKH 0RSDU 'HSRW 6HFXULW\ 0DQDJHU LQ
                                                                                 $SULO  7KH FRPSDQ\ GLG QRW SRVW WKH MRE KRZHYHU XQWLO sXO\ RI WKDW
                                                                                 \HDU +RSVRQ DUJXHV WKDW WKLV GLVFUHSDQF\ VKRZV WKH FRPSDQ\ KDG QR
                                                                                 LQWHQWLRQ RI FRQGXFWLQJ D PHDQLQJIXO VHDUFK IRU TXDOLILHG FDQGLGDWHV
     
      7KH GLVVHQW VWDWHV WKDW WKH SODLQWLII KDV WKH EXUGHQ RI SURYLQJ WKDW WKH   0RUH OLNHO\ KRZHYHU +DZNLQV ZDV VLPSO\ PLVWDNHQ DERXW WKH GDWH RQ
GHIHQGDQWjV QRQGLVFULPLQDWRU\ UHDVRQ LV SUHWH[W DQG WKDW WKH DFWXDO            ZKLFK KH ZDV SURPRWHG DV FRPSDQ\ UHFRUGV LQGLFDWH WKDW +DZNLQV ZDV
UHDVRQ IRU WKH GHIHQGDQWjV DFWLRQ LV GLVFULPLQDWLRQ           7KH PDMRULW\      QRW SURPRWHG XQWLO $XJXVW  7KHUHIRUH WKH GLVWULFW FRXUW GLG QRW HUU
UHFRJQL]HV WKDW WKH SODLQWLII DOZD\V PDLQWDLQV WKH EXUGHQ RI SURYLQJ WKDW        LQ UHMHFWLQJ WKLV DOOHJHG GLVFUHSDQF\ DV D EDVLV IRU ILQGLQJ WKDW +RSVRQ KDG
WKH GHIHQGDQW HQJDJHG LQ LQWHQWLRQDO GLVFULPLQDWLRQ       6HH %XUGLQH       UDLVHG D JHQXLQH LVVXH RI PDWHULDO IDFW ZLWK UHVSHFW WR ZKHWKHU
86 DW  5HHYHV  FODULILHG KRZHYHU WKDW WKH SODLQWLII QHHG QRW SUHVHQW     'DLPOHU&KU\VOHUjV OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ ZDV SUHWH[WXDO
LQGHSHQGHQW SURRI RI GLVFULPLQDWLRQ DIWHU WKH GHIHQGDQW KDV SUHVHQWHG D
OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ WR VDWLVI\ WKLV EXUGHQ 7R WKH             +RSVRQ DOVR DVVHUWV WKDW 'DLPOHU&KU\VOHU GLVFULPLQDWHG DJDLQVW KLP E\
FRQWUDU\ WKH SODLQWLII FDQ PHHW KLV EXUGHQ RI SURYLQJ LQWHQWLRQDO               mWDLORUPD>NLQJ@ >WKH@ TXDOLILFDWLRQV WR ILW WKH ZKLWH PDOH DSSOLFDQWVl $W
GLVFULPLQDWLRQ VLPSO\ E\ SUHVHQWLQJ HYLGHQFH WKDW WKH GHIHQGDQWjV                ERWWRP WKLV DPRXQWV WR D FRQFOXVRU\ DOOHJDWLRQ WKDW LV QRW VXSSRUWHG E\
SURIIHUHG UHDVRQ LV QRW ZRUWK\ RI FUHGHQFH       5HHYHV    86 DW       VSHFLILF IDFWV LQ WKH UHFRUG 7KXV WKH GLVWULFW FRXUW SURSHUO\ UHMHFWHG WKLV
QRWLQJ WKDW mRQFH WKH HPSOR\HUjV MXVWLILFDWLRQ KDV EHHQ HOLPLQDWHG             DUJXPHQW DV ZHOO $00 :DGH Y .QR[YLOOH 8WLOLWLHV %G  )G  
GLVFULPLQDWLRQ PD\ ZHOO EH WKH PRVW OLNHO\ DOWHUQDWLYH H[SODQDWLRQl :H         WK &LU  QRWLQJ WKDW mFRQFOXVRU\ DOOHJDWLRQV DQG >WKH SODLQWLIIjV
KDYH DGKHUHG WR WKDW HYLGHQWLDU\ JXLGHOLQH LQ RXU HYDOXDWLRQ RI +RSVRQjV         VXEMHFWLYH@ SHUFHSWLRQV    DUH QRW VXIILFLHQW WR VWDYH RII VXPPDU\
FDVH                                                                            MXGJPHQWl