Court Opinion

ID: 2970596
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:17:03.626125+00
Date Added: 2024-06-11T15:01:57.045099
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

.$07(&+ ,1&                  ;
                   3HWLWLRQHU   
                                 
                                   1RV
           Y                    
                                  !
                                 
1$7,21$/ /$%25 5(/$7,216 
%2$5'                           
                  5HVSRQGHQW 
                                 
,17(51$7,21$/                    
                                 
%527+(5+22' 2)                   
%2,/(50$.(56 ,521 6+,3          
%8,/'(56 %/$&.60,7+            
)25*(56 $1' +(/3(56 $)/ 
&,2                             
                   ,QWHUYHQRU 
                                 
                                1
2Q3HWLWLRQIRU5HYLHZIURPWKH'HFLVLRQRIWKH1DWLRQDO
                 /DERU5HODWLRQV%RDUG
         1RV&$&$
              6XEPLWWHG$XJXVW

                           
        .DPWHFK,QFY1/5%                    1RV         1RV                 .DPWHFK,QFY1/5%        

             'HFLGHGDQG)LOHG6HSWHPEHU
                         GLVSXWHVZKHQVZRUQWHVWLPRQ\LVRIIHUHGRQERWKVLGHVRIDQ
                                                                            LVVXH  6HH 3LNHYLOOH 8QLWHG 0HWKRGLVW +RVS  )G DW
    %HIRUH.(,7+DQG'$8*+75(<&LUFXLWsXGJHV                            Q 7RQ\ 6FRWW 7UXFNLQJ  )G DW 
                 &$55'LVWULFWsXGJH

                                    &RQVHTXHQWO\ GHVSLWH .DPWHFKjV FODLPV ZH GHFOLQH WR
                                                                            RYHUWXUQVXFKFRQFOXVLRQV
                        BBBBBBBBBBBBBBBBB
                                                                              ,QDILQDODOOHJDWLRQRIHUURU.DPWHFKLQVLVWVWKDWWKH%RDUG
                              &2816(/                                       HUUHG LQ mUXEEHUVWDPSLQJl WKH DGPLQLVWUDWLYH ODZ MXGJHjV
                                                                            FRQFOXVLRQ RI ODZ WKDW WKH FRPSDQ\ YLRODWHG WKH $FW E\
21 %5,()  0HUHGLWK / sDVRQ 1$7,21$/ /$%25                         m>L@QIRUPLQJ HPSOR\HHV WKDW WKHLU DSSOLFDWLRQV IRU
5(/$7,216%2$5':DVKLQJWRQ'&IRU5HVSRQGHQW                          HPSOR\PHQWZRXOGQRWEHFRQVLGHUHGEHFDXVHRIWKHLUXQLRQ
(ULF.6PLWK/,77/(50(1'(/621$WODQWD*HRUJLD                         DIILOLDWLRQl$FFRUGLQJWRWKHUHVSRQGHQWWKHDGPLQLVWUDWLYH
IRU3HWLWLRQHU0LFKDHOs6WDSS%/$.(	8+/,*.DQVDV                    ODZ MXGJH mIDLOHG WR LGHQWLI\ WKH HYLGHQFH XSRQ ZKLFK KH
&LW\.DQVDVIRU,QWHUYHQRU                                             EDVHG KLV FRQFOXVLRQ DQG GLG QRW DGGUHVV WKLV DOOHJDWLRQ
                                                                            DQ\ZKHUHLQKLVGHFLVLRQl
                        BBBBBBBBBBBBBBBBB
                                                                               &RQWUDU\ WR .DPWHFKjV DVVHUWLRQ KRZHYHU WKH
                            23,1,21                                         DGPLQLVWUDWLYHODZMXGJHGLGLQGHHGGLVFXVVWKHEDVLVIRUWKLV
                        BBBBBBBBBBBBBBBBB                                   ILQGLQJDQGFRQFOXVLRQ7KHUHIHUHQFHWR.DPWHFKjVDFWRI
                                                                            LQIRUPLQJ HPSOR\HHV WKDW SHUVRQV ZLWK XQLRQ RUJDQL]LQJ
   0$57+$ &5$,* '$8*+75(< &LUFXLW sXGJH  7KH                        FUHGHQWLDOVZRXOGQRWEHFRQVLGHUHGIRUHPSOR\PHQWFOHDUO\
SHWLWLRQHULQWKLVGLVSXWH.DPWHFK,QFVHHNVUHYLHZRIDQ               UHIHUVWRWKHFRPPHQWVPDGHE\IRUHPDQ2NLH/DFH\WR5LFN\
RUGHU RI WKH 1DWLRQDO /DERU 5HODWLRQV %RDUG GLUHFWLQJ                &R[LQ+DZHVYLOOHFRPPHQWVGLVFXVVHGE\WKHDGPLQLVWUDWLYH
.DPWHFKWRUHIUDLQIURPQXPHURXVDFWVIRXQGWRKDYHEHHQ                    ODZMXGJHDWOHQJWKLQKLVGHFLVLRQ)XUWKHUPRUHDOWKRXJKWKH
FRPPLWWHG LQ YLRODWLRQ RI WKH SURYLVLRQV RI WKH 1DWLRQDO            FRPSDQ\DUJXHVWKDW&R[jVWHVWLPRQ\LQWKLVUHJDUGVKRXOG
/DERU5HODWLRQV$FW86&WRUHLQVWDWHRQH                 QRW EH EHOLHYHG WKH DGPLQLVWUDWLYH ODZ MXGJH ZDV DJDLQ
HPSOR\HH WHUPLQDWHG IURP WKH FRPSDQ\ DQG WR RIIHU D                SODFHG LQ D SRVLWLRQ RI PDNLQJ D GHWHUPLQDWLRQ RI WKH
ZHOGLQJWHVWWRDQRWKHUIRUPHUHPSOR\HH7KH%RDUGKDVILOHG               FUHGLELOLW\RIWKHZLWQHVVHVDQGFKRVHWRILQGWKDW&R[ZDVQRW
DFURVVDSSOLFDWLRQVHHNLQJHQIRUFHPHQWRILWVRUGHU)RUWKH              O\LQJLQPDNLQJWKHVWDWHPHQWVFUHGLWHGE\WKHILQGHURIIDFW
UHDVRQVVHWRXWEHORZZHRUGHUHQIRUFHPHQWRIWKH%RDUGjV
RUGHU                                                                                              &21&/86,21
                                                                              )RUWKHUHDVRQVVHWRXWDERYHZHFRQFOXGHWKDWVXEVWDQWLDO
                                                                            HYLGHQFHVXSSRUWVWKH%RDUGjVILQGLQJVDQGWKDWWKH%RDUGjV
                                                                            UHTXHVWIRUHQIRUFHPHQWRILWVRUGHUPXVWEH*5$17(':H
    
                                                                       IXUWKHUFRQFOXGHWKDW.DPWHFKjVSHWLWLRQIRUUHYLHZPXVWEH
                                                                            '(1,('
     7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl
ILOHG RQ 6HSWHPEHU   2Q 'HFHPEHU   WKH FRXUW GHVLJQDWHG
WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ

    

        7KH +RQRUDEOH sDPHV * &DUU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
    .DPWHFK,QFY1/5%                 1RV        1RV                .DPWHFK,QFY1/5%         

FDXVHG E\ VXFK HPSOR\HH GLVREHGLHQFH  .DPWHFK IDLOV WR         )$&78$/$1'352&('85$/%$&.*5281'
UHFRJQL]HKRZHYHUWKDWLWVRZQDQWLXQLRQDFWLYLWLHVFDXVHG
WKHmLQVXERUGLQDWLRQlDQGWKDWWKHDGPLQLVWUDWLYHODZMXGJH             )URP$XJXVWWKURXJK$SULO.DPWHFKD1HZ
UHDVRQDEO\LQIHUUHGWKDW5RXQWUHHZDVWUHDWHGGLIIHUHQWO\WKDQ       <RUN UHVLGHQWLDO LQGXVWULDO DQG FRPPHUFLDO FRQVWUXFWLRQ
RWKHUHPSOR\HHVVROHO\EHFDXVHRIKLVXQLRQVWDWXV                  FRPSDQ\ ZDV HQJDJHG LQ SURMHFWV LQ 2ZHQVERUR DQG
                                                                     +DZHVYLOOH .HQWXFN\  %\ 0D\  WKH ,QWHUQDWLRQDO
   %URZQLQJFKRVH5RXQWUHHIRUWKHSDUWLFXODUWDVNLQTXHVWLRQ       %URWKHUKRRGRI%RLOHUPDNHUV,URQ6KLS%XLOGHUV%ODFNVPLWK
RQO\ DIWHU SUHPDWXUHO\ HQGLQJ D EUHDN SHULRG DW ZKLFK        )RUJHUV DQG +HOSHUV $)/&,2 KDG GHFLGHG WKDW LW ZRXOG
SHUPLVVLEOHXQLRQVROLFLWDWLRQZDVRFFXUULQJ0RUHRYHUWKH         DWWHPSW WR RUJDQL]H WKH .DPWHFK MREV DQG WKXV GLVSDWFKHG
LQIODPPDWRU\ FRPPHQW m,jYH MXVW JRW WKH MRE IRU \RXU        XQLRQZRUNHUVWRWKH.DPWHFKVLWHVWREHJLQWKHSURFHVVIURP
LQVWLJDWLQJ DVVl SURYLGHV FUXFLDO LQVLJKW LQWR %URZQLQJjV     ZLWKLQWKHSODQWV
PRWLYDWLRQ LQ DVVLJQLQJ WKH SHUFHLYHG GDQJHURXV WDVN
3RVVLEO\ PRVW LQGLFDWLYH RI WKH FRPSDQ\jV PLQGVHW LQ WKH       6RPHWLPH LQ ODWH 0D\  WZR XQLRQ ZHOGHUV sDPHV
HQWLUH LQFLGHQW LV WKH PDQQHU LQ ZKLFK WKH SURMHFW ZDV      m0LWFKl'RWVRQDQG5REHUW<RXQJYLVLWHGWKH2ZHQVERUR
XOWLPDWHO\FRPSOHWHGDIWHU%URZQLQJLQVLVWHGWKDW5RXQWUHH           VLWHDQGLQIRUPHGWKHSLSLQJVXSHULQWHQGHQWWKDWWKH\ZLVKHG
SHUIRUPWKHMRELPPHGLDWHO\DQGE\XVLQJRQO\DQDYDLODEOH           WRDSSO\IRUZHOGLQJMREV$OWKRXJKWKHPHQZHUHWROGDWWKDW
ODGGHU  $IWHU WKH HPSOR\HH ZLWK XQLRQ DIILOLDWLRQV ZDV      WLPHWKDWQRVXFKSRVLWLRQVZHUHWKHQRSHQ'RWVRQUHFHLYHG
WHUPLQDWHG%URZQLQJGLGQRWGLUHFWWKDWDQRWKHULQGLYLGXDO          DFDOOLQHDUO\sXQHWRUHWXUQWRWKHZRUNVLWHEHFDXVH.DPWHFK
XQGHUWDNHWKHmUXVKlMREDWWKDWWLPH5DWKHUDOOWHVWLPRQ\        ZDVDJDLQKLULQJZHOGHUV%RWK'RWVRQDQG<RXQJUHVSRQGHG
EHIRUHWKHDGPLQLVWUDWLYHODZMXGJHSRLQWVWRWKHIDFWWKDWWKH      WRWKHUHTXHVWDQGZHUHXOWLPDWHO\JLYHQZHOGLQJWHVWVE\RQH
WDVNZDVQRWFRPSOHWHGIRUDQRWKHUGD\RUWZRDQGWKDWZKHQ         RI.DPWHFKjVTXDOLW\FRQWURODJHQWV:LOPHU6HOOHUV'RWVRQ
SHUIRUPHGWKHZHOGHUZDVSHUPLWWHGWRXVHVFDIIROGLQJVRDV         FRPSOHWHG KLV WHVW ZHOG LQ DSSUR[LPDWHO\  PLQXWHV
WRFRPSOHWHWKHMRELQDVDIHPDQQHU7KXVLWLVQRWPHUHO\        LQVSHFWHGKLVZRUNZLWKDIODVKOLJKWDQGWHOHVFRSLFPLUURUDQG
WKH WHUPLQDWLRQ RI DQ HPSOR\HH IRU LQVXERUGLQDWLRQ WKDW       SURFODLPHG KLV ZHOG mSHUIHFWl  <RXQJ DOVR LQVSHFWHG
UHVXOWHGLQWKHILQGLQJRIDODERUODZYLRODWLRQLQWKLVPDWWHU     'RWVRQjVZRUNDQGEDVHGXSRQ<RXQJjVDSSUR[LPDWHO\
,QVWHDGRQFHDJDLQLWLV.DPWHFKjVNQRZLQJDQGFRQVFLRXV           \HDUVRIH[SHULHQFHDVDZHOGHUVWDWHGWKDWKHVDZQRWKLQJ
GHFLVLRQ WR WUHDW XQLRQ VXSSRUWHUV DPRQJ LWV HPSOR\HHV        ZURQJZLWKWKHWHVWZHOGGRQHE\KLVFRDSSOLFDQW
GLIIHUHQWO\ WKDQ RWKHU ZRUNHUV WKDW WKH DGPLQLVWUDWLYH ODZ
MXGJH DQG WKH %RDUG IRXQG XQODZIXO  8QGHU WKHVH               :KHQ 6HOOHUV ZDV VXPPRQHG WR LQVSHFW WKH mWHVWl WKH
FLUFXPVWDQFHVWKH%RDUGGLGQRWHUULQRUGHULQJWKDW5RXQWUHH       .DPWHFKDJHQWILUVWORRNHGDWWKHZHOGLQJMREIRUDOPRVWD
UHFHLYHWKHDSSURSULDWHUHOLHIIRUWKHLOOHJDODFWVSHUIRUPHGE\     PLQXWH+HWKHQLQTXLUHGZKHWKHU'RWVRQKDGEHHQZHOGLQJ
.DPWHFKRIILFLDOVDJDLQVWKLP                                       ERLOHU WXEHV DQG DIWHU UHFHLYLQJ DQ DIILUPDWLYH UHVSRQVH
                                                                     DVNHGEOXQWO\m$UH\jDOOXQLRQ"l:KHQ'RWVRQUHSOLHGWKDW
  .DPWHFK QH[W WDNHV LVVXH ZLWK WKH FUHGLELOLW\                KHZDVLQGHHGDXQLRQPHPEHU6HOOHUVUHH[DPLQHGWKHWHVW
GHWHUPLQDWLRQV PDGH E\ WKH DGPLQLVWUDWLYH ODZ MXGJH LQ        ZHOGSRLQWHGRXWDQXPEHURIIODZVWKDWKHEXWQRW'RWVRQ
UHJDUGWRWKHDOOHJHGLQWHUURJDWLRQRIZHOGHUV0LWFK'RWVRQ          VDZDQGLQIRUPHGWKHDSSOLFDQWWKDWKHKDGIDLOHGWKHWHVW
DQG5REHUW<RXQJFRQFHUQLQJWKHLUXQLRQDIILOLDWLRQDQGLQ
UHJDUG WR VWDWHPHQWV PDGH WR 0LFKDHO &RUQHOO DERXW WKH         6LPLODUO\DIWHU<RXQJFRPSOHWHGKLVWHVWZHOGERWKKHDQG
IXWLOLW\RIXQLRQPHPEHUVKLS$VZHSUHYLRXVO\REVHUYHGZH         'RWVRQSHUXVHGWKHZRUNDQGIRXQGQRGHIHFWLQLW$JDLQ
DUH XQLTXHO\ XQVXLWHG WR SDVV XSRQ WKH OHJLWLPDF\ RI VXFK   KRZHYHU6HOOHUVVWDWHGWKDWWKHYHWHUDQZHOGHUKDGIDLOHGWKH
     .DPWHFK,QFY1/5%                 1RV        1RV                   .DPWHFK,QFY1/5%         

WHVWWKLVWLPHDIWHUH[DPLQLQJWKHDSSOLFDQWjVZRUNIRURQO\D      FRPSDQ\ZDVWKHUHVXOWRILOOHJDODQWLXQLRQDQLPXV$VZH
IHZVHFRQGV<RXQJZKRWHVWLILHGWRWKHQXPHURXVZHOGLQJ           KDYHMXVWUHFHQWO\VXPPDUL]HG
FHUWLILFDWLRQVKHKDGUHFHLYHGRYHUKLVQHDUO\TXDUWHUFHQWXU\
LQ WKH SURIHVVLRQ H[SUHVVHG KLV VXUSULVH DW WKH UHVXOWV      ,Q GHWHUPLQLQJ ZKHWKHU DQ HPSOR\HU KDV XQODZIXOO\
HVSHFLDOO\JLYHQWKHIDFWWKDWKHUHFDOOHGIDLOLQJRQO\RQHRWKHU      WHUPLQDWHGRUODLGRIIDQHPSOR\HHRQWKHEDVLVRIDQWL
ZHOGLQJWHVWRIWKHPRUHWKDQKHKDGWDNHQRYHUWKH\HDUV         XQLRQDQLPXVWKLV&RXUWDSSOLHVWKHWHVWHQXQFLDWHGLQ
                                                                       :ULJKW /LQH Y 1/5%  1/5%    6HH
  $IWHU'RWVRQjVDQG<RXQJjVH[SHULHQFHVZLWK.DPWHFKWKH             1/5% Y 7UDQVS 0JPW &RUS  86  
XQLRQVWHSSHGXSLWVRUJDQL]LQJDFWLYLWLHVDQGDWDPHHWLQJRQ        DGRSWLQJWKH:ULJKW/LQHWHVW8QGHU:ULJKW/LQHWKH
sXQH   IRUPHG D FRPPLWWHH RI  .DPWHFK                1/5%jV*HQHUDO&RXQVHOPXVWHVWDEOLVKDSULPDIDFLH
HPSOR\HHVLQFOXGLQJ0LFKDHO&RUQHOODQG0DUN5RXQWUHH                FDVH RI GLVFULPLQDWLRQ E\ VHWWLQJ IRUWK HYLGHQFH WKDW
ZKRDJUHHGWRGLVWULEXWHXQLRQFDUGVDQGVROLFLWIRUWKHODERU         VXSSRUWV DQ LQIHUHQFH WKDW WKH HPSOR\HHjV SURWHFWHG
RUJDQL]DWLRQ  $W ZRUN RQ sXQH  SULRU WR WKH PHHWLQJ     DFWLYLWLHV ZHUH D PRWLYDWLQJ IDFWRU LQ WKH HPSOR\HUjV
5RXQWUHHGLVFXVVHGWKHSODQVIRUWKDWHYHQLQJjVJDWKHULQJZLWK         GHFLVLRQ  ,Q SDUWLFXODU WKH *HQHUDO &RXQVHO PXVW
DQXPEHURIIHOORZHPSOR\HHV&RLQFLGHQWDOO\RQWKDWVDPH            GHPRQVWUDWH WKDW  WKH HPSOR\HH ZDV HQJDJHG LQ
GD\5RXQWUHHZDVVHOHFWHGIRURQHRIWKHFRPSDQ\jVUDQGRP             SURWHFWHG DFWLYLW\  WKDW WKH HPSOR\HU NQHZ RI WKH
GUXJ WHVWV D SURFHGXUH WKDW XVXDOO\ WRRN DSSUR[LPDWHO\      HPSOR\HHjVSURWHFWHGDFWLYLW\DQGWKDWWKHHPSOR\HU
PLQXWHV$FFRUGLQJWR5RXQWUHHKRZHYHURQsXQHKLV              DFWHGDVLWGLGRQWKHEDVLVRIDQWLXQLRQDQLPXV1/5%
WHVWWRRNmZHOORYHUWZRKRXUVlEHFDXVHKHZDVILUVWDVNHGWR          Y*HQ)DEULFDWLRQV&RUS)GWK&LU
DFFRPSDQ\ WKH VDIHW\ RIILFHU DV KH URXQGHG XS WKH RWKHU       TXRWLQJ,77$XWRY1/5%)G
LQGLYLGXDOVWREHWHVWHGDQGWKHQEHFDXVHXSRQDUULYLQJDWWKH        WK&LU$VWRWKLVWKLUGSURQJZHKDYHKHOGWKDW
WHVWLQJWUDLOHUKHIRXQGWKDWWKHQXUVHKDGJRQHLQWRWRZQZLWK       HYLGHQFH RI DQ HPSOR\HUjV DQWLXQLRQ DQLPXV FDQ EH
DQRWKHUHPSOR\HHZKRKDGVXIIHUHGDQH\HLQMXU\RQWKHMRE            SXUHO\FLUFXPVWDQWLDODQGWKDWPDQ\IDFWVFDQFRQWULEXWH
                                                                       WR D ILQGLQJ RI DQ DQWLXQLRQ PRWLYH     2QFH WKH
   :KHQ5RXQWUHHILQDOO\UHWXUQHGWRKLVSRVWDIWHUJLYLQJD           *HQHUDO&RXQVHOKDVPDGHRXWDSULPDIDFLHFDVHRIDQWL
XULQH VDPSOH KH ZDV DSSURDFKHG E\ KLV IRUHPDQ %RE            XQLRQDQLPXVmWKHEXUGHQVKLIWVWRWKHHPSOR\HUWRSURYH
%URZQLQJZKRSURFHHGHGWRZULWHXSDGLVFLSOLQDU\QRWLFHIRU          E\DSUHSRQGHUDQFHRIWKHHYLGHQFHWKDWLWZRXOGKDYH
mDORVVRISURGXFWLRQDQGEHLQJDZD\IURP>WKH@ZRUNDUHD             WDNHQWKHVDPHDFWLRQHYHQLQWKHDEVHQFHRISURWHFWHG
HQWLUHO\WRRORQJl:KHQ5RXQWUHHSURWHVWHGDQGDWWHPSWHG             FRQGXFWl1/5%Y*HQ6HUYV&RUS)G
WRH[SODLQWKHH[WHQXDWLQJFLUFXPVWDQFHVWKDWOHGWRWKHGHOD\         WK&LU
LQUHWXUQLQJWRZRUN%URZQLQJSURFODLPHGWKDWmWKHZDOOV
KDYH HDUVl DQG WKDW 5RXQWUHH mEHWWHU ZDWFK >KLV@ VWHS DQG   )LYH&$3,QFY1/5%)GWK&LU
ZKDW>KH@JHW>V@LQYROYHGLQl
                                                                       ,QVLIWLQJWKURXJKWKHVHVKLIWLQJEXUGHQVWKHFRPSDQ\DJDLQ
  7KHIROORZLQJGD\sXQHXQLRQRUJDQL]HU(XJHQH           PLVFRQVWUXHVWKHLQWHUSOD\EHWZHHQRXUQDWLRQjVODERUODZV
)RUNLQ GHOLYHUHG D OHWWHU FRQWDLQLQJ WKH QDPHV RI WKH     DQGGDLO\EXVLQHVVRSHUDWLRQV)RULQVWDQFH.DPWHFKDUJXHV
YROXQWHHU XQLRQ RUJDQL]HUV DW WKH 2ZHQVERUR SURMHFWV WR       WKDW 5RXQWUHH ZRXOG KDYH EHHQ GLVFKDUJHG IRU KLV
.DPWHFKjV SLSLQJ VXSHULQWHQGHQW sRKQ :HEVWHU                   LQVXERUGLQDWLRQDQGUHIXVLQJWRSHUIRUPDQDVVLJQHGWDVNHYHQ
,PPHGLDWHO\DIWHUGHOLYHU\RIWKHOHWWHUQXPHURXV.DPWHFK           KDGKHQRWEHHQDYROXQWHHUXQLRQRUJDQL]HU,QVXSSRUWRILWV
HPSOR\HHV EHJDQ GLVSOD\LQJ XQLRQ VWLFNHUV DQG RWKHU            SRVLWLRQ WKH FRPSDQ\ WKHQ SRLQWV WR RWKHU WHUPLQDWLRQV
    .DPWHFK,QFY1/5%                  1RV        1RV                   .DPWHFK,QFY1/5%           

RIRQHZLWQHVVRUWKHRWKHUDQGKHREYLRXVO\FKRVHWREHOLHYH        SDUDSKHUQDOLDRQWKHLUKDWVDQGRWKHUFORWKLQJ5RXQWUHHRQH
5RXQWUHHDFUHGLELOLW\GHWHUPLQDWLRQWKDWLVQRZHIIHFWLYHO\         RIWKHRUJDQL]HUVDOVREURXJKWXQLRQOLWHUDWXUHZLWKKLPWR
LQVXODWHGIURPUHYLHZRQDSSHDO                                      ZRUNWKDWGD\DQGSODFHGLWRQKLVOXQFKER[LQWKHHPSOR\HH
                                                                      EUHDN URRP  :KLOH ZRUNLQJ RQ D SLSH UDFN LQ WKDW DUHD
    .DPWHFKIXUWKHUDVVHUWVWKDWQRXQIDLUODERUSUDFWLFHFDQEH      5RXQWUHHVDZ%URZQLQJZKRKDGEHHQmKRXQGGRJJLQJlKLP
IRXQGKHUHEHFDXVHWKHFRPSDQ\DOVRURXWLQHO\GLVFLSOLQHG             WKHHQWLUHGD\NLFNWKHXQLRQLQIRUPDWLRQRIIWKHOXQFKER[
RWKHU ZRUNHUV IRU WDUGLQHVV LQ UHWXUQLQJ WR WKH MRE
1HYHUWKHOHVV WKH FLUFXPVWDQFHV LQ WKLV FDVH MXVWLI\ WKH          'XULQJ5RXQWUHHjVILUVWEUHDNRQsXQH KH GLVWULEXWHG
LQIHUHQFH GUDZQ E\ WKH DGPLQLVWUDWLYH ODZ MXGJH WKDW WKH      VRPHRIWKHXQLRQPDWHULDOVWRRWKHUHPSOR\HHV(YHQWXDOO\
FRPSDQ\jVDFWLRQVGLGLQGHHGFRQVWLWXWHDYLRODWLRQRIODERU          KRZHYHU %URZQLQJ MRLQHG WKH JURXS FRQILVFDWHG WKH
ODZSULQFLSOHV)LUVW%URZQLQJLPSRVHGWKHGLVFLSOLQHXSRQ          DXWKRUL]DWLRQFDUGVDQGDQQRXQFHGWKDWmLWjVWLPHWRJREDFN
5RXQWUHHZLWKRXWHYHQERWKHULQJWRFKHFNZKDWZHUHFOHDUO\            WRZRUNo\RXNQRZ\RXRQO\JHWILYHPLQXWHEUHDNVl
DVFHUWDLQDEOHIDFWV$VLPSOHSKRQHFDOOWRWKHQXUVHDWWKH         5RXQWUHHEHJDQWRH[SODLQWKDWWKHHPSOR\HHVDOZD\VUHFHLYHG
GUXJ WHVWLQJ ORFDWLRQ FRXOG KDYH HVWDEOLVKHG GHILQLWLYHO\       WHQPLQXWHEUHDNVDQGWKDWWKHUHVWSHULRGKDGMXVWEHJXQSULRU
ZKHWKHU5RXQWUHHZDVZDLWLQJSDWLHQWO\IRUWKHOHQJWKRIWLPH         WR%URZQLQJjVHQWUDQFH$WWKDWSRLQWWKHIRUHPDQH[SODLQHG
KH FODLPHG WR KDYH EHHQ DVNHG WR UHPDLQ DZD\ IURP KLV       WKDWWKHFRPSDQ\KDGREYLRXVO\EHHQWRRNLQGWRWKHZRUNHUV
HPSOR\PHQW GXWLHV  ,Q WKH DEVHQFH RI DQ\ HYLGHQFH WKDW      DQGWKHQVWDWHGWR5RXQWUHHm,jYHMXVWJRWWKHMREIRU\RXU
DQ\RQHFRQQHFWHGZLWKWKHFRPSDQ\PDGHVXFKDSKRQHFDOO             LQVWLJDWLQJDVVl
LWLVFOHDUO\QRWXQUHDVRQDEOHIRUWKHDGPLQLVWUDWLYHODZMXGJH
WRKDYHFUHGLWHGWKHWHVWLPRQ\RI0DUN5RXQWUHHWKHRQO\               %URZQLQJOHG5RXQWUHHWRDQDUHDRI WKH SODQWZKHUHKH
RWKHUZLWQHVVZKRKDGDFWXDOO\EHHQLQYROYHGLQWKHHQWLUH            GLUHFWHG WKH HPSOR\HH WR SHUIRUP D ZHOGLQJ MRE
GUXJWHVWLQJSURFHVV                                                 DSSUR[LPDWHO\IHHWLQWKHDLULQWKHYLFLQLW\RIDFRQFUHWH
                                                                      VTXDUHFROXPQZLWKDGURSRIWRIHHWRQWKHRWKHUVLGH
   6HFRQGRWKHUHOHPHQWVRI5RXQWUHHjVWHVWLPRQ\EHIRUHWKH          RIDQDGMDFHQWWZRIRRWKLJKZDOO5RXQWUHHDIWHUDVVHVVLQJ
DGPLQLVWUDWLYH ODZ MXGJH HYLGHQFHG WKH DQWLXQLRQ ELDV RI      WKH MRE H[SODLQHG WKDW KH ZRXOG QHHG HLWKHU D OLIW RU
%URZQLQJ DQG RWKHU .DPWHFK RIILFLDOV  $FFRUGLQJ WR            VFDIIROGLQJ WR FRPSOHWH WKH ZHOGLQJ VDIHO\  %URZQLQJ
5RXQWUHH KLV LQTXLULHV DERXW WKH QHFHVVLW\ RI VXFK D         LQVLVWHGKRZHYHUWKDWWKHMREEHGRQHLPPHGLDWHO\ZLWKRXW
UHSULPDQGZHUHPHWVLPSO\E\%URZQLQJjVVWDWHPHQWVWKDW               DQ\VXFKHTXLSPHQWWKDWPLJKWGHOD\WKHSURMHFWjVFRPSOHWLRQ
mZDOOVKDYHHDUVlDQGWKDW5RXQWUHHKDGmEHWWHUZDWFK>KLV@           DQGVXJJHVWHGWKDWWKHZHOGHUPDNHXVHRIDQH[WHQVLRQODGGHU
VWHS DQG ZKDW >KH@ JHW>V@ LQYROYHG LQl  6XFK DQ XQYHLOHG   WKDWZDVQHDUE\5RXQWUHHDJDLQEDONHGDWWKHVXJJHVWLRQ
UHIHUHQFH WR WKH GDQJHU RI HQJDJLQJ LQ XQLRQ RUJDQL]LQJ       QRWLQJWKDWWKHORJLVWLFVRIWKHMREZRXOGUHTXLUHZHOGLQJZLWK
DFWLYLWLHVWKXVVXSSRUWVWKH%RDUGjVLQIHUHQFHWKDWFRQWUDU\WR      KHDY\ HTXLSPHQW LQ MXVW RQH KDQG DQG UHTXHVWHG D
%URZQLQJjVRZQWHVWLPRQ\.DPWHFKjVHIIRUWVWRGLVFLSOLQH             FRQVXOWDWLRQZLWK'DYLG)UHZWKHFRPSDQ\jVVDIHW\RIILFHU
5RXQWUHH D NQRZQ RUJDQL]HU IRU WKH XQLRQjV FDXVH ZHUH
LPSURSHUO\PRWLYDWHGLQYLRODWLRQRIWKHUHOHYDQWSURYLVLRQV             $OWKRXJK )UHZ LQLWLDOO\ DJUHHG ZLWK 5RXQWUHH WKDW WKH
RIWKH1DWLRQDO/DERU5HODWLRQV$FW                                  SURSRVHG SODQ RI DFWLRQ GLG QRW DSSHDU WR EH VDIH KH ODWHU
                                                                      FKDQJHGKLVPLQGDIWHUFRQYHUVLQJZLWK%URZQLQJDQGsRKQ
 )LQDOO\.DPWHFKFRQWHQGVWKDWWKH%RDUGFDQQRWVKRZWKDW            :HEVWHUZKRKDGDOVREHHQVXPPRQHGWRWKHVLWH:KLOH
5RXQWUHHjV DFWXDO GLVFKDUJH IURP HPSOR\PHQW ZLWK WKH            %URZQLQJ:HEVWHUDQG)UHZZHUHWDONLQJ5RXQWUHHQRWLFHG
                                                                      LQ:HEVWHUjVKDQGVWKHOHWWHUWKHVXSHULQWHQGHQWKDGUHFHLYHG
     .DPWHFK,QFY1/5%                 1RV        1RV                 .DPWHFK,QFY1/5%         

HDUOLHULQWKHGD\ZLWKWKHOLVWRIXQLRQRUJDQL]HUV5RXQWUHH      DW ZRUN E\  SP QRW WKH  SP KRXU DW ZKLFK
DOVRRYHUKHDUG:HEVWHUFRPPHQWm,ZDQWWRJHWULGRIKLPl           %URZQLQJ ZURWH 5RXQWUHH XS IRU PLVVLQJ ZRUN WLPH
                                                                     &RQVHTXHQWO\ DVVHUWV .DPWHFK RQ DSSHDO WKHUH LV QR
  %URZQLQJWKHQDJDLQLQVLVWHGWKDW5RXQWUHHFRPSOHWHWKH            WHVWLPRQ\LQVXSSRUWRI5RXQWUHHjVYHUVLRQRIWKHHYHQWVRI
WDVNXVLQJRQO\DQH[WHQVLRQODGGHUDQGQRWDVFDIIROGRUDOLIW    sXQH  DQG WKH DGPLQLVWUDWLYH ODZ MXGJHjV DQG %RDUGjV
:KHQ 5RXQWUHH FRQWLQXHG WR TXHVWLRQ WKH VDIHW\ RI WKH        FUHGLWLQJRIVXFKmQRQHYLGHQFHlLVWKHUHIRUHLPSURSHU
SURSRVHGDVVLJQPHQW%URZQLQJDVNHGGLUHFWO\ZKHWKHUWKH
HPSOR\HHLQWHQGHGWRXQGHUWDNHWKHMRE5RXQWUHHUHVSRQGHG            'HVSLWH WKH FRPSDQ\jV YLHZ RI WKH HYLGHQFH WKH UHFRUG
WKDW VXFK D VFHQDULR ZDV mQRW OLNHO\l DQG %URZQLQJ          EHIRUHXVFDQEHUHDGWRVXSSRUW5RXQWUHHjVDFFRXQWRIZKDW
LPPHGLDWHO\ILUHG5RXQWUHHIRULQVXERUGLQDWLRQDQGIDLOXUHWR        RFFXUUHGRQsXQH.DPWHFKQRZLQVLVWVWKDWWKHZULWHXS
FRPSOHWHDQDVVLJQHGWDVN$VWKHWZRPHQZHUHZDONLQJWR           RFFXUUHGLPPHGLDWHO\XSRQ5RXQWUHHjVUHWXUQWRKLVVWDWLRQ
WKHZDUHKRXVHWRFRPSOHWHWKHVHYHUDQFHIRUPV%URZQLQJ              DQGEHFDXVHWKHZULWHXSZDVQRWXQGHUWDNHQXQWLOSP
FRPPHQWHGWR5RXQWUHHm,ZDUQHG\RXDERXWWKLVLWGLGQjW           5RXQWUHHPXVWKDYHEHHQDZD\IURPKLVMREEHWZHHQDWOHDVW
KDYHWREHWKLVZD\DQG\RXVKRXOGKDYHMXVWVWD\HGRXWRIWKLV      QRRQDQGWKHWLPHRIWKHGLVFLSOLQDU\DFWLRQ1RVXFKVWULFW
VKLWl                                                               LQWHUSUHWDWLRQRIWKHWHVWLPRQ\LVPDQGDWHGKRZHYHU
   'HVSLWH%URZQLQJjVLQVLVWHQFHXSRQLPPHGLDWHFRPSOHWLRQ             1HLWKHUSDUW\GLVSXWHVWKDWWKHSDSHUZRUNLQYROYHGLQWKH
RIWKHZHOGLQJMREWKHDVVLJQHGWDVNZDVQRWSHUIRUPHGIRUD        GLVFLSOLQDU\ DFWLRQ ZDV FRPSOHWHG E\ %URZQLQJ DW
FRXSOHRIGD\VDIWHU5RXQWUHHjVWHUPLQDWLRQ0RUHRYHUZKHQ         DSSUR[LPDWHO\  SP RQ sXQH   7KH IDFWXDO
WKH MRE ZDV ILQDOO\ DWWHPSWHG WKH ZHOGHU WDFNOLQJ LW ZDV   GLVDJUHHPHQWLQVWHDGFHQWHUVRQO\DURXQGKRZORQJDQGIRU
DOORZHGWRXVHVFDIIROGLQJWRDVVLVWLQWKHSHUIRUPDQFHRIWKH       ZKDWUHDVRQV5RXQWUHHZDVDFWXDOO\DZD\IURPZRUNEHIRUH
SURFHGXUH                                                          WKDWWLPH$OWKRXJK.DPWHFKLVHDJHUWRSRLQWWRHYLGHQFH
                                                                     WKDWWKHHPSOR\HHZDVZULWWHQXSLPPHGLDWHO\XSRQKLVUHWXUQ
   $IWHUWKHSDVVDJHRIGD\VIURPKLVWHUPLQDWLRQ5RXQWUHH       WR WKH SODQW HYHQ %URZQLQJ KLPVHOI FRQFXUUHG ZLWK
WULHGWRREWDLQDQRWKHUMREZLWK.DPWHFKDWLWVSURMHFWVLWHLQ      5RXQWUHHjVWHVWLPRQ\WKDWWKHHPSOR\HHZDVDEVHQWIRURQO\
+DZHVYLOOH.HQWXFN\EXWWKHKLULQJRIILFLDOVDWWKDWORFDWLRQ      DERXWWZRKRXUV6XFKDVFHQDULRLVHQWLUHO\FRQVLVWHQWZLWK
QHYHU UHVSRQGHG WR KLV LQTXLULHV  5LFN\ &R[ KLPVHOI D     5RXQWUHHjV WHVWLPRQ\ WKDW KH ZDV DZD\ IURP WKH MRE ILUVW
.DPWHFK HPSOR\HH ZKR KDG EHHQ ILUHG IRU XQVDWLVIDFWRU\        ZKLOH KH DFFRPSDQLHG )UHZ DV WKH VDIHW\ RIILFHU JDWKHUHG
ZRUNWHVWLILHGEHIRUHWKHDGPLQLVWUDWLYHODZMXGJHWKDW2NLH        RWKHUWHVWSDUWLFLSDQWVDQGWKHQZKLOH5RXQWUHHZDLWHGIRUWKH
/DFH\.DPWHFKjVIRUHPDQDW+DZHVYLOOHKDGVWDWHGWRKLP            QXUVHWRUHWXUQIURPWRZQZKHUHVKHKDGWDNHQDQLQMXUHGFR
WKDWKHFRXOGQjWKLUH5RXQWUHHDWWKH+DZHVYLOOHZRUNVLWH          ZRUNHU)XUWKHUPRUHHYHQ.DPWHFKGRFXPHQWVLQGLFDWHWKDW
GHVSLWHWKHQHHGIRUH[SHULHQFHGZHOGHUVEHFDXVH5RXQWUHH           5RXQWUHHZDVLQGHHGGUXJWHVWHGRQsXQH$OWKRXJK
KDGmVWDUWHGVRPHXQLRQSUREOHPVRXWDW>2ZHQVERUR@WU\LQJ          5RXQWUHHjV QDPH P\VWHULRXVO\ GLG QRW DSSHDU RQ WKH GUXJ
WRRUJDQL]HWKHXQLRQl                                             WHVWLQJVLJQLQORJWKHODWHVWOLVWHGVLJQLQWLPHRQWKDWVKHHW
                                                                     ZDV  DP  7KXV XVLQJ HYHQ %URZQLQJjV WKUHHKRXU
   0RUHRYHU5RXQWUHHZDVQRWWKHRQO\.DPWHFKHPSOR\HH              HVWLPDWHRIWKHWLPH5RXQWUHHZDVDEVHQWIURPKLVSRVWKDG
ZKR WHVWLILHG WR LQVWDQFHV RI DQWLXQLRQ DQLPXV DW WKH       WKH HPSOR\HH DSSHDUHG IRU WKH WHVW ZLWK RWKHU ZRUNHUV KH
2ZHQVERURDQG+DZHVYLOOHVLWHV7RQ\:D\QH+ROFRPED               ZRXOGKDYHEHHQEDFNDWKLVMREE\SPQRWSP
SLSHILWWHU VWDWHG WKDW DIWHU KH EHJDQ ZHDULQJ SURXQLRQ      ,Q WKH IDFH RI VXFK DQ LUUHFRQFLODEOH IDFWXDO GLVSXWH WKH
VWLFNHUV WR ZRUN KH ZDV VXEMHFWHG WR KDUDVVPHQW IURP KLV   DGPLQLVWUDWLYHODZMXGJHZDVUHTXLUHGWRFUHGLWWKHWHVWLPRQ\
    .DPWHFK,QFY1/5%                 1RV       1RV                 .DPWHFK,QFY1/5%          

DVD7,*ZHOGHU.DPWHFKLVFOHDUO\XQGHUQRFRPSXOVLRQWR          IRUHPDQ sLPER +DEHU]HWWOH  $FFRUGLQJ WR +ROFRPE
RIIHUKLPVXFKHPSOR\PHQW                                          +DEHU]HWWOHUHIHUUHGWRKLPDVDmXQLRQSXQNlSODFHGDVLJQ
                                                                    LQWKHEUHDNURRPVWDWLQJWKDWmXQLRQSXQNVHDWKHUHlDQG
   ,QDVHULHVRIFKDOOHQJHV.DPWHFKDOVRFRQWHQGVWKH%RDUG       ODXJKHG ZLWK RWKHU SHRSOH DERXW RQH RI +ROFRPEjV
HUUHGLQXSKROGLQJWKHDGPLQLVWUDWLYHODZMXGJHjVFRQFOXVLRQV       SD\FKHFNVGHULVLYHO\DQQRXQFLQJm/RRNZKDWWKHXQLRQSXQN
FRQFHUQLQJ DOOHJHG GLVFULPLQDWRU\ WUHDWPHQW VXIIHUHG E\        EURXJKWKRPHFHQWVl
ZHOGHU0DUN5RXQWUHH,QSDUWLFXODUWKHFRPSDQ\TXHVWLRQV
WKH%RDUGKROGLQJVWKDWIRUHPDQ%RE%URZQLQJFRPPLWWHG                )LQDOO\ 0LFKDHO &RUQHOO WHVWLILHG WKDW KH VHUYHG ZLWKRXW
XQIDLUODERUSUDFWLFHVLQLQGLFDWLQJWKDWXQLRQDGYRFDWHVZHUH      LQFLGHQW DV D .DPWHFK ZHOGHU XQGHU KLV IRUHPDQ &UDLJ
VXEMHFW WR VXUYHLOODQFH LQ VKRUWHQLQJ EUHDN SHULRGV LQ     *DVWRQXQWLO&RUQHOOEHJDQWRZHDUXQLRQEXWWRQVDQGDIWHU
GLVFLSOLQLQJ5RXQWUHHIRUDQH[FHVVLYHO\OHQJWK\DEVHQFHIURP       KLVQDPHDSSHDUHGRQWKHOHWWHUWRsRKQ:HEVWHU$IWHUWKDW
KLVMREDQGLQWHUPLQDWLQJ5RXQWUHHIRUUHIXVLQJWRSHUIRUP        GDWHDVVHUWV&RUQHOO*DVWRQDSSURDFKHGKLPDQGDQQRXQFHG
DSDUWLFXODUZHOGLQJMRE:HFRQFOXGHKRZHYHUWKDWHDFKRI       WKDWWKHHPSOR\HHjVXQLRQRUJDQL]LQJmLVQjWJRLQJWRGRDQ\
WKHVHFRQWHQWLRQVRIHUURUDUHZLWKRXWPHULW                       JRRGlDQGm>LV@DZDVWHRIWLPHl(YHQWXDOO\.DPWHFKODLG
                                                                    &RUQHOO RII ZRUN DOWKRXJK WKH ZHOGHU ZDV RQH RI WKH ODVW
   )LUVW .DPWHFKjV VROH DUJXPHQW LQ RSSRVLWLRQ WR WKH       FUDIWVPDQWREHVRGLVSODFHGDQGQRVWUXFWXUDOZHOGLQJZDV
ILQGLQJVWKDW%URZQLQJLPSURSHUO\LPSDUWHGWR5RXQWUHHWKH          SHUIRUPHGDWWKHVLWHDIWHU&RUQHOOjVGHSDUWXUH/DWHU&RUQHOO
LPSUHVVLRQWKDWXQLRQVXSSRUWHUVKDGEHHQPRQLWRUHGDQGWKDW        DOVRFRQWDFWHG.DPWHFKjV+DZHVYLOOHZRUNVLWHDIWHUKHDULQJ
%URZQLQJVKRUWHQHGHPSOR\HHVjEUHDNWLPHVLQUHWDOLDWLRQIRU        WKHFRPSDQ\ZDVVHHNLQJWRHPSOR\ZHOGHUVEXWWKHFRPSDQ\
XQLRQ RUJDQL]LQJ LV WKDW 5RXQWUHH VKRXOG QRW EH EHOLHYHG    DOVRQHYHUUHWXUQHGKLVQXPHURXVWHOHSKRQHFDOOV
EHFDXVHRIKLVSDVWIHORQ\FRQYLFWLRQV7KHDGPLQLVWUDWLYH
ODZMXGJHKRZHYHUHYDOXDWHGWKHFUHGLELOLW\RIWKHYDULRXV           1RWVXUSULVLQJO\PDQDJHPHQWRIILFLDOVDW.DPWHFKUHIXWHG
ZLWQHVVHVEHIRUHKLP+LVXOWLPDWHGHWHUPLQDWLRQVFDQQRWEH        DOODOOHJDWLRQVWKDWFRPSDQ\VXSHUYLVRUVKDUERUHGDQ\DQWL
GLVUHJDUGHG VLPSO\ EHFDXVH FRQWUDU\ HYLGHQFH ZDV DOVR         XQLRQDQLPXV7KH\XQLIRUPO\GHQLHGPDNLQJDQ\GHURJDWRU\
SUHVHQWHGEXWGLVFUHGLWHG                                         FRPPHQWVDERXWWKHXQLRQRUXQLRQVXSSRUWHUVDQGLQVLVWHG
                                                                    VWUHQXRXVO\WKDWWKHXQLRQDFWLYLVWVZKRZHUHGLVFKDUJHGRU
  6HFRQG WKH FRPSDQ\ LQVLVWV WKDW WKH DGPLQLVWUDWLYH ODZ    ODLGRIIIURPWKH.HQWXFN\ZRUNVLWHVZHUHOHWJRRQO\IRU
MXGJHjV FRQFOXVLRQV FRQFHUQLQJ WKH GLVFLSOLQDU\ ZULWHXS       OHJLWLPDWHEXVLQHVVDQGGLVFLSOLQDU\UHDVRQV
5RXQWUHHUHFHLYHGIRUEHLQJDZD\IURPKLVZRUNVWDWLRQIRUDQ
H[WHQGHGSHULRGRIWLPHQHHGQRWEHUHVSHFWHGEHFDXVHWKH              )DFHGZLWKGLDPHWULFDOO\RSSRVHGDFFRXQWVRIWKHDFWLYLWLHV
HYLGHQFHRIIHUHGE\WKH*HQHUDO&RXQVHOIRUWKH%RDUGDQG           LQYROYLQJ.DPWHFKLQ2ZHQVERURDQG+DZHVYLOOHLQWKHODWH
FUHGLWHG E\ WKH DGPLQLVWUDWLYH ODZ MXGJH ZDV IDFWXDOO\       VSULQJ DQG HDUO\ VXPPHU RI  WKH DGPLQLVWUDWLYH ODZ
XQVXSSRUWHG,QGHHG.DPWHFKLQVLVWVWKDWWKHGLVSXWHLVQRW       MXGJH DVVLJQHG WR UHVROYH WKH ODERU GLVSXWH ZDV IRUFHG WR
VLPSO\DERXWZKHWKHU5RXQWUHHKDGWRZDLWIRUKLVFRPSDQ\           PDNHFUHGLELOLW\GHWHUPLQDWLRQVRQDOPRVWHYHU\XQIDLUODERU
GUXJ WHVW EHIRUH UHWXUQLQJ WR ZRUN EXW ZKHWKHU HYHQ       SUDFWLFH DOOHJDWLRQ  ,Q GRLQJ VR KH FRQFOXGHG WKDW 0LWFK
DVVXPLQJVXFKDGHOD\WKHHPSOR\HHPLVXVHGXQVXSHUYLVHG            'RWVRQ DQG 5REHUW <RXQJ ZHUH QRW KLUHG E\ WKH FRPSDQ\
WLPHGXULQJWKHZRUNGD\$FFRUGLQJWRWKHFRPSDQ\WKH            VROHO\ EHFDXVH RI WKHLU XQLRQ DIILOLDWLRQV DQG WKDW :LOPHU
GUXJ WHVWV ZHUH FRQGXFWHG LQ WKH ODWH PRUQLQJ KRXUV DQG   6HOOHUVjV LQWHUURJDWLRQ RI WKHP UHJDUGLQJ WKHLU WLHV WR
WKHUHIRUH HYHQ LI 5RXQWUHH KDG WR ZDLW WZR KRXUV EHIRUH   RUJDQL]HG ODERU FRQVWLWXWHG FRHUFLYH DFWV LQ YLRODWLRQ RI
FRPSOHWLRQRIKLVWHVWWKHHPSOR\HHVKRXOGKDYHEHHQEDFN           D RI WKH 1DWLRQDO /DERU 5HODWLRQV $FW  86&
     .DPWHFK,QFY1/5%                   1RV        1RV                      .DPWHFK,QFY1/5%           

 D  7KH DGPLQLVWUDWLYH ODZ MXGJH DOVR IRXQG          .DPWHFK IXUWKHU LQVLVWV WKDW QR HYLGHQFH HVWDEOLVKHV WKDW
FRHUFLYH %RE %URZQLQJjV FRPPHQWV WR 0DUN 5RXQWUHH                &RUQHOOjVQDPHZDVDOVRRQDQ\OLVWDQGWKDWLQDQ\HYHQW
VXJJHVWLQJWKDWXQLRQV\PSDWKL]HUVZHUHXQGHUVXUYHLOODQFH             WKHUHLVQRLQGLFDWLRQWKDWWKHOLVWUHIHUUHGWRLQ6HSWHPEHUZDV
DQGGHWHUPLQHGWKDW.DPWHFKVXSHUYLVRUVIXUWKHUYLRODWHGWKH           LQH[LVWHQFHLQODWHsXO\DQGHDUO\$XJXVW
$FWE\LPSRVLQJDPRUHGLIILFXOWDQGGDQJHURXVDVVLJQPHQW
XSRQDQLGHQWLILHGXQLRQRUJDQL]HUDQGWKHQWHUPLQDWLQJKLP               7KH UHDVRQDEOH LQIHUHQFH GUDZQ E\ WKH %RDUG KRZHYHU
ZKHQKHUHIXVHGWRSHUIRUPLW7KHILQDOYLRODWLRQVRIWKH$FW        IURP WKH HYLGHQFH SUHVHQWHG EHIRUH WKH DGPLQLVWUDWLYH ODZ
IRXQGE\WKHDGPLQLVWUDWLYHODZMXGJHLQYROYHGWKHFRPPHQWV            MXGJHLVWKDWWKHmOLVWlUHIHUUHGWRE\IRUHPDQ/DFH\ZDVWKH
PDGHWR0LFKDHO&RUQHOODERXWWKHIXWLOLW\RIXQLRQVXSSRUW            OLVWRIYROXQWHHUXQLRQRUJDQL]HUVKDQGHGWRsRKQ:HEVWHUE\
DQG WKH FRPSDQ\jV IDLOXUH WR FRQVLGHU &RUQHOO IRU ZHOGLQJ      (XJHQH)RUNLQRQsXQH2QO\WKDWOHWWHUFRQWDLQHG
SRVLWLRQV EHFDXVH RI KLV LQFOXVLRQ RQ WKH OLVW RI YROXQWHHU   WKHQDPHVRIWKHLQGLYLGXDOPHPEHUVRIWKHXQLRQDWWHPSWLQJ
RUJDQL]HUV$OORWKHUDOOHJDWLRQVPDGHE\WKH%RDUGjVJHQHUDO         WRRUJDQL]HDWWKH2ZHQVERURSODQWDOLVWWKDWSURPLQHQWO\
FRXQVHODQGXQLRQUHSUHVHQWDWLYHVZHUHIRXQGLQVXIILFLHQWWR           LQFOXGHGWKHQDPHRI0LFKDHO&RUQHOOGLUHFWO\DERYH0DUN
VXSSRUWILQGLQJVRIYLRODWLRQVRIWKH$FW                             5RXQWUHHjVQDPH%HFDXVHWKHLQIRUPDWLRQLQWKDWOHWWHUZDV
                                                                       LQWKHSRVVHVVLRQRI.DPWHFKSHUVRQQHOQRODWHUWKDQsXQH
  7RUHPHG\WKRVHYLRODWLRQVWKHDGPLQLVWUDWLYHODZMXGJH              LW ZDV UHDVRQDEOH IRU WKH %RDUG WR LQIHU WKDW WKH
RUGHUHG.DPWHFKWRFHDVHDQG GHVLVWIURPHQJDJLQJLQWKH              FRPSDQ\jV IDLOXUH WR WUHDW &RUQHOO LQ WKH VDPH PDQQHU WKH
YHU\ DFWV WKDW FRQWUDYHQHG WKH SURWHFWLRQV DIIRUGHG LQ RXU     FRPSDQ\ WUHDWHG QRQXQLRQ MRE DSSOLFDQWV LQ ODWH sXO\ DQG
QDWLRQjVODERUSROLFLHV+HIXUWKHURUGHUHGWKHFRPSDQ\WR            HDUO\$XJXVWZDVEDVHGRQWKHHPSOR\HHjVXQLRQRUJDQL]LQJ
UHLQVWDWH5RXQWUHHZLWKEDFNSD\DQGWRRIIHUZHOGLQJMREVWR         DFWLYLWLHVDVGRFXPHQWHGLQsXQH2QDSSHDOm>W@KLV FRXUW
'RWVRQ <RXQJ DQG &RUQHOO WKH LQGLYLGXDOV GHQLHG               PD\ QRW GLVSODFH UHDVRQDEOH LQIHUHQFHV RI WKH %RDUGl
HPSOR\PHQWEHFDXVHRIWKHLUXQLRQDIILOLDWLRQV                        3LNHYLOOH8QLWHG0HWKRGLVW+RVS)GDW
   2QUHYLHZWKH%RDUGFRQFXUUHGLQWKHDGPLQLVWUDWLYHODZ              )LQDOO\WKH%RDUGPRGLILHGWKHDGPLQLVWUDWLYHODZMXGJHjV
MXGJHjVFUHGLELOLW\GHWHUPLQDWLRQVDQGIDFWXDOILQGLQJV7KH          UXOLQJ UHJDUGLQJ &RUQHOO VR DV WR RUGHU .DPWHFK WR WHVW
%RDUG GLG PRGLI\ WKH SUHYLRXVO\ HQWHUHG RUGHU VOLJKWO\         &RUQHOO IRU KLV SURILFLHQF\ DV D ZHOGHU QRW QHFHVVDULO\ WR
KRZHYHU E\ UHVFLQGLQJ WKH DGPLQLVWUDWLYH ODZ MXGJHjV            UHKLUHWKHIRUPHUHPSOR\HH)RUWKLVUHDVRQDOVRWKHUHIRUH
GLUHFWLYHWKDW&RUQHOOEHRIIHUHGDSRVLWLRQZLWK.DPWHFKDQG         WKH FRPSDQ\jV FLWDWLRQ WR )OXRU 'DQLHO LV LQDSSRVLWH  ,Q
LQVWHDGRUGHULQJRQO\WKDW&RUQHOOEHRIIHUHGWKHRSSRUWXQLW\         DFFRUGDQFHZLWKWKHFKDOOHQJHG%RDUGUXOLQJLIWKHZHOGLQJ
WRWDNHDZHOGLQJWHVWWRGHWHUPLQHZKHWKHUKHLVTXDOLILHGIRU        WHVWUHYHDOVWKDW&RUQHOOLVLQGHHGQRWTXDOLILHGIRUDSRVLWLRQ
DSRVLWLRQZLWKWKHFRPSDQ\)XUWKHUPRUHUDWKHUWKDQDIILUP
WKHGHFLVLRQWRRIIHUMREVWR'RWVRQDQG<RXQJWKH%RDUG
FKRVHPHUHO\WRUHPDQGWKHPDWWHUWRWKHDGPLQLVWUDWLYHODZ
MXGJHIRUUHFRQVLGHUDWLRQLQOLJKWRIWKH%RDUGjVGHFLVLRQLQ              
                                                                            .DPWHFK DOVR REMHFWV WR WKH %RDUGjV ILQGLQJ LQ WKLV UHJDUG EDVHG

)(61/5%0D\VHWWLQJIRUWKWKH%RDUGjV             XSRQ WKH FRPSDQ\jV GLVDJUHHPHQW ZLWK WKH DGPLQLVWUDWLYH ODZ MXGJHjV

SRVLWLRQLQIDLOXUHWRFRQVLGHUFDVHV,QDOORWKHUUHVSHFWVWKH    GHFLVLRQ WR FUHGLW WKH WHVWLPRQ\ RI 5LFN\ &R[ UDWKHU WKDQ WKH WHVWLPRQ\ RI

%RDUGDIILUPHGWKHDGPLQLVWUDWLYHODZMXGJHjVGHWHUPLQDWLRQV          2NLH /DFH\ %XW XQGHU ZHOOHVWDEOLVKHG SUHFHGHQW ZH ZLOO QRW GLVWXUE
                                                                       DJHQF\ FUHGLELOLW\ GHWHUPLQDWLRQV LQ WKH IDFH RI FRQIOLFWLQJ WHVWLPRQ\ 6HH
                                                                       7RQ\ 6FRWW 7UXFNLQJ  )G DW  m7KH DVVLJQPHQW RI FUHGLELOLW\ WR

                                                                               )G DW  Q TXRWLQJ                                  
                                                                       ZLWQHVVHV LV WKH SUHURJDWLYH RI WKH %RDUGl   3LNHYLOOH 8QLWHG 0HWKRGLVW

                                                                       )G   WK &LU 
                                                                       +RVS                                 8QLRQ &DUELGH &RUS Y 1/5%
       .DPWHFK,QFY1/5%                     1RV           1RV                 .DPWHFK,QFY1/5%          

EHLQJUHMHFWHGIRUDSRVLWLRQIRUZKLFKKHDGPLWWHGO\ZDVQRW                                           ',6&866,21
TXDOLILHG1RUHDVRQDEOHH[SODQDWLRQRWKHUWKDQWKDWLQIHUUHG
E\ WKH %RDUG FDQ WKXV H[SODLQ KRZ D YHWHUDQ ZHOGHU OLNH               3XUVXDQWWRWKHSURYLVLRQVRI86&
&RUQHOOZLWKSULRUHPSOR\PHQWH[SHULHQFHZLWKWKHFRPSDQ\
FRXOG EH UHMHFWHG RXWRIKDQG IRU D SRVLWLRQ IRU ZKLFK KH               (PSOR\HHVVKDOOKDYHWKHULJKWWRVHOIRUJDQL]DWLRQWR
DSSOLHG  :KHQ DOO DSSOLFDQWV IRU ZHOGLQJ SRVLWLRQV DUH                 IRUP MRLQ RU DVVLVW ODERU RUJDQL]DWLRQV WR EDUJDLQ
RIIHUHG ZHOGLQJ WHVWV WR GHWHUPLQH WKHLU TXDOLILFDWLRQV D                FROOHFWLYHO\ WKURXJK UHSUHVHQWDWLYHV RI WKHLU RZQ
FRPSDQ\ LV SURKLELWHG E\ WKH $FW IURP VHOHFWLYHO\                         FKRRVLQJDQGWRHQJDJHLQRWKHUFRQFHUWHGDFWLYLWLHVIRU
GLVFULPLQDWLQJDJDLQVWRQO\XQLRQPHPEHUVE\GHQ\LQJWKHP                        WKHSXUSRVHRIFROOHFWLYHEDUJDLQLQJRURWKHUPXWXDODLG
HTXDORSSRUWXQLWLHVWRFRPSHWHIRUDYDLODEOHSRVLWLRQV7KH                     RUSURWHFWLRQDQGVKDOODOVRKDYHWKHULJKWWRUHIUDLQIURP
%RDUGjVILQGLQJRIDYLRODWLRQRIWKH$FWLQWKLVUHJDUGPXVW                   DQ\RUDOORIVXFKDFWLYLWLHVH[FHSWWRWKHH[WHQWWKDWVXFK
WKHUHIRUHEHDIILUPHG                                                          ULJKW PD\ EH DIIHFWHG E\ DQ DJUHHPHQW UHTXLULQJ
                                                                                 PHPEHUVKLS LQ D ODERU RUJDQL]DWLRQ DV D FRQGLWLRQ RI
  $VDQDGGLWLRQDOEDVLVIRUFKDOOHQJLQJWKH%RDUGjVGHFLVLRQ                    HPSOR\PHQW DV DXWKRUL]HG LQ VHFWLRQ D RI WKLV
UHJDUGLQJ WKH IDLOXUH WR FRQVLGHU &RUQHOOjV mDSSOLFDWLRQl                 WLWOH
.DPWHFK DVVHUWV WKDW DQ\ HYLGHQFH RI WKH FRPSDQ\jV DQWL
XQLRQ DQLPXV WRZDUG WKH HPSOR\HH LV EDVHG VROHO\ XSRQ                  &RQJUHVVKDVGHFUHHGSURWHFWLRQRIWKHVHLPSRUWDQWULJKWVE\
WHVWLPRQ\FRQFHUQLQJDQRWKHULQGLYLGXDODWDWLPHGLIIHUHQW                    PDNLQJLWDQXQIDLUODERUSUDFWLFHRQWKHSDUWRIHPSOR\HUVWR
IURP WKDW DW ZKLFK &RUQHOO VRXJKW WR EH UHKLUHG  7KLV               DPRQJ RWKHU WKLQJV mLQWHUIHUH ZLWK UHVWUDLQ RU FRHUFH
FRQWHQWLRQ LV DOVR ODFNLQJ LQ ERWK ORJLF DQG PHULW  ,Q              HPSOR\HHVLQWKHH[HUFLVHRIWKHULJKWVJXDUDQWHHGLQVHFWLRQ
DGYDQFLQJLWVGHIHQVHWRWKLVFKDUJH.DPWHFKFODLPVWKDWWKH                  RIWKLVWLWOHl86&DRUmE\GLVFULPLQDWLRQ
RQO\ HYLGHQFH RI LWV DQWLXQLRQ ELDV DW +DZHVYLOOH ZDV                 LQ UHJDUG WR KLUH RU WHQXUH RI HPSOR\PHQW RU DQ\ WHUP RU
GHPRQVWUDWHGWKURXJKWKHFRQWHVWHGWHVWLPRQ\RI5LFN\&R[                     FRQGLWLRQ RI HPSOR\PHQW WR HQFRXUDJH RU GLVFRXUDJH
ZKRRYHUKHDUGIRUHPDQ/DFH\VWDWHLQ6HSWHPEHUWKDWKH                    PHPEHUVKLS LQ DQ\ ODERU RUJDQL]DWLRQl   86&
FRXOGQjWKLUH0DUN5RXQWUHHEHFDXVHRI5RXQWUHHjVLQFOXVLRQ                    D
RQ D OLVW DW WKH 2ZHQVERUR SODQW IRU VWDUWLQJ mVRPH XQLRQ
SUREOHPVWU\LQJWRRUJDQL]HWKHXQLRQl.DPWHFKWKHQ                    $VZHKDYHQRWHGDQHPSOR\HUJHQHUDOO\FRPPLWVDQXQIDLU
DUJXHVWKDWWKH%RDUGLPSURSHUO\H[WUDSRODWHGWKDWDQLPXVWR                   ODERU SUDFWLFH E\ PDNLQJ DQ HPSOR\PHQW GHFLVLRQ WKDW
WKHGHFLVLRQWRWUHDW&RUQHOOGLIIHUHQWO\ZKHQKHDSSOLHGIRU                  GLVFRXUDJHV XQLRQ PHPEHUVKLS RU LQWHUIHUHV ZLWK DQ
DSRVLWLRQLQ+DZHVYLOOHLQODWHsXO\DQGHDUO\$XJXVW                   HPSOR\HHjV ULJKW WR RUJDQL]H  6HH 2SSRUWXQLW\ +RPHV Y
                                                                               1/5%  )G   WK &LU  RYHUUXOHG RQ
                                                                               RWKHUJURXQGVLQ1/5%Y:HEFRU3DFNDJLQJ,QF)G
                                                                                WK &LU   7KH WKUHVKROG WHVW IRU GHWHUPLQLQJ
     
      )XUWKHU XQGHUPLQLQJ .DPWHFKjVDVVHUWLRQ WKDW &RUQHOO ZDV QRW HYHQ         ZKHWKHUWKHHPSOR\PHQWGHFLVLRQFRQVWLWXWHVDQXQIDLUODERU
            IRU KLULQJ GXH WR KLV ODFN RI TXDOLILFDWLRQV LV WKH WHVWLPRQ\ RI   SUDFWLFHLVZKHWKHUWKHGHFLVLRQZDVPRWLYDWHGE\DQWLXQLRQ
%DUU\ 5REHUWV D SURMHFW PDQDJHU DW .DPWHFK ZKR DGPLWWHG WKDW HYHQ
FRQVLGHUHG

                                                                               DQLPXV6HH1/5%Y&RRN)DPLO\)RRGV/WG)G
 RI WKH 7,* ZHOGHUV IDLOHG WKH ZHOGLQJ WHVW JLYHQ E\ WKH FRPSDQ\ ,I        WK&LU
VHYHQ RI HYHU\ WHQ DSSOLFDQWV ZKR FODLP WR EH 7,* ZHOGHUV IDLO WR SHUIRUP
WKH WHVW VDWLVIDFWRULO\ EXW \HW DUH SHUPLWWHG WR             WR VXFFHHG LQ      7KH %RDUG EHDUV WKH LQLWLDO EXUGHQ RI HVWDEOLVKLQJ E\ D
SHUIRUPLQJ WKH MRE SUHUHTXLVLWH WKH FRPSDQ\jV H[SODQDWLRQ WKDW &RUQHOO
                                                    DWWHPSW

ZDV QRW DOORZHG WR DWWHPSW D ZHOGLQJ WHVW EHFDXVH KH GLG QRW GHPRQVWUDWH       SUHSRQGHUDQFHRIWKHHYLGHQFHWKDWWKHHPSOR\HUjVGHFLVLRQ
VXIILFLHQW NQRZOHGJH RI WKH FUDIW WKH WHOHSKRQH
                                  RYHU                ULQJV KROORZ LQGHHG     ZDV PRWLYDWHG E\ WKH HPSOR\HHVj H[HUFLVH RI WKHLU ULJKWV
       .DPWHFK,QFY1/5%                   1RV          1RV                     .DPWHFK,QFY1/5%              

SURWHFWHGE\WKH1DWLRQDO/DERU5HODWLRQV$FW6HH'LUHFWRU                 .DPWHFKUHOLHVRQ1/5%Y)OXRU'DQLHO,QF)G
2IILFH RI :RUNHUVj &RPS 3URJUDPV 'HSjW RI /DERU Y                WK&LUHFKRLQJRXUUXOLQJWKHUHWKDWm>W@KHUHLV
*UHHQZLFK&ROOLHULHV86$IWHUVXFK                 QRLQWHUIHUHQFHZLWKUHVWUDLQWRUFRHUFLRQRIDSSOLFDQWVLQWKH
D SULPD IDFLH VKRZLQJ KDV EHHQ PDGH E\ WKH %RDUG WKH             H[HUFLVHRIWKHLUSURWHFWHGULJKWVZKHQDQHPSOR\HUHYHQZLWK
EXUGHQRISHUVXDVLRQVKLIWVWRWKHHPSOR\HUWRSURYHDJDLQE\              DQWLXQLRQ DQLPXV UHMHFWV DSSOLFDQWV ZKR DUH LQ IDFW
DSUHSRQGHUDQFHRIWKHHYLGHQFHWKHDIILUPDWLYHGHIHQVHWKDW               XQTXDOLILHG RU IRU ZKRVH SDUWLFXODU VHUYLFHV WKH HPSOR\HU
WKHVDPHHPSOR\PHQWGHFLVLRQZRXOGKDYHEHHQPDGHHYHQ                      VLPSO\KDVQRQHHGl5HOLDQFHXSRQVXFKDQLQWHUSUHWDWLRQRI
LQWKHDEVHQFHRIDQ\SURWHFWHGODERUDFWLYLW\6HH:)%ROLQ             WKH$FWLQWKLVLQVWDQFHKRZHYHUFDQEHRIQRDYDLOWRWKH
&RY1/5%)GWK&LU                              SHWLWLRQHULQDGGUHVVLQJWKHFKDUJHVOHYHOHGE\&RUQHOO
   %RDUGILQGLQJVRIIDFWDUHFRQFOXVLYHRQDSSHDOLIVXSSRUWHG                )LUVW WKH UHFRUG QRZ EHIRUH WKH FRXUW LV XQGLVSXWHG WKDW
E\ VXEVWDQWLDO HYLGHQFH RQ WKH UHFRUG  6HH  86&              .DPWHFKZDVLQGHHGVHHNLQJZHOGHUVDWLWV+DZHVYLOOHZRUN
HDQGIm6XEVWDQWLDOHYLGHQFHlKDVEHHQGHILQHGDV              VLWH  ,Q IDFW QRW RQO\ GLG D .DPWHFK UHSUHVHQWDWLYH LQ
mVXFKUHOHYDQWHYLGHQFHDVDUHDVRQDEOHPLQGPLJKWDFFHSWDV                2ZHQVERURILUVWLQIRUP&RUQHOOWKDWWKHFRPSDQ\ZDVKLULQJ
DGHTXDWHWRVXSSRUWDFRQFOXVLRQl2SSRUWXQLW\+RPHV                  LQ+DZHVYLOOHEXWWKHLQGLYLGXDOZKRDQVZHUHGWKHSKRQHDW
)GDWTXRWLQJ&RQVRO(GLVRQ&RY1/5%86                  WKH KLULQJ ORFDWLRQ DOVR FRQILUPHG WKDW WKH FRPSDQ\ ZDV
m'HIHUHQFHWRWKH%RDUGjVIDFWXDOILQGLQJV               ORRNLQJWRHPSOR\ZHOGHUV
LVSDUWLFXODUO\DSSURSULDWHZKHUHWKHµUHFRUGLVIUDXJKWZLWK
FRQIOLFWLQJWHVWLPRQ\DQGHVVHQWLDOFUHGLELOLW\GHWHUPLQDWLRQV                6HFRQG HYHQ WKH )OXRU 'DQLHO PDMRULW\ UHFRJQL]HG WKDW
KDYHEHHQPDGHjl7RQ\6FRWW7UXFNLQJ,QFY1/5%                   DQWLXQLRQ DQLPXV FDQQRW OHJDOO\ EH PDQLIHVWHG LQ VXFK D
)GWK&LUTXRWLQJ1/5%Y1XHYD(QJjJ                 PDQQHUDVWRUHVXOWLQGLIIHUHQWWUHDWPHQWIRUXQLRQDSSOLFDQWV
,QF)GWK&LU)XUWKHUPRUHWKH                 DQGQRQXQLRQDSSOLFDQWV6HHLGDW&RQVHTXHQWO\
FRXUWVKRXOGQRWGLVSODFHUHDVRQDEOHLQIHUHQFHVGUDZQE\WKH                .DPWHFKjVmMXVWLILFDWLRQlIRUIDLOLQJHYHQWRFRQVLGHU&RUQHOO
%RDUG IURP WKH IDFWV SUHVHQWHG  6HH 3LNHYLOOH 8QLWHG               IRUDZHOGLQJMREEHFDXVHRILPSURSHUDQVZHUVWRTXHVWLRQV
0HWKRGLVW +RVS Y 8QLWHG 6WHHOZRUNHUV RI $P  )G             XQH[SHFWHGO\DVNHGRYHUWKHWHOHSKRQHPXVWIDLOLQWKHIDFHRI
WK&LU                                                 WHVWLPRQ\ WKDW WKH FRPSDQ\ URXWLQHO\ UHVHUYHG LWV KLULQJ
                                                                            GHFLVLRQV XQWLO DIWHU WHVWLQJ DSSOLFDQWV E\ KDYLQJ WKHP
  ,Q LWV ILUVW LVVXH LQ LWV SHWLWLRQ IRU UHYLHZ RI WKH %RDUGjV   GHPRQVWUDWH WKHLU ZHOGLQJ DELOLW\ LQ SHUVRQ  7HOOLQJO\
RUGHU .DPWHFK FRQWHQGV WKDW WKH %RDUG HUUHG LQ JUDQWLQJ            WHVWLPRQ\RIIHUHGE\7RQ\+ROFRPEHVWDEOLVKHGWKDWHYHQD
UHOLHI WR 0LFKDHO &RUQHOO RQ KLV DVVHUWLRQ WKDW KH ZDV             SLSHILWWHU OLNH +ROFRPE ZDV RIIHUHG D ZHOGLQJ WHVW EHIRUH
LPSURSHUO\ GHQLHG DQ RSSRUWXQLW\ WR EH FRQVLGHUHG IRU D
ZHOGLQJMREDW.DPWHFKjV+DZHVYLOOHVLWH,QDGYDQFLQJWKLV
WKHRU\.DPWHFKPDLQWDLQVWKDWWKLVFRXUWjVGHFLVLRQLQ)OXRU                       :HOO VWUXFWXUDO ZHOGLQJ \RX DUH XVLQJ D FRDWHG ZHOGLQJ URG
'DQLHOSUHFOXGHVUHOLHIIRU&RUQHOOVLPSO\EHFDXVH&RUQHOO                      DQG LQ 7,* ZHOGLQJ \RX DUH XVLQJ D 7XQJVWHQ WLS RQ D WRUFK DQG

ZDVQRWTXDOLILHGIRUDMREDVD7,*ZHOGHU                                   \RX KDYH WR IHHG WKH ZLUH DQG KDYH D VKLHOG DQG \RX IHHG WKH
                                                                                7XQJVWHQ WLS LQ WKH FRQWH[W ZLWK WKH PHWDO ZKLFK KHDWV WKH PHWDO
                                                                                DQG \RX KDYH WR IHHG WKH ZLUH ZLWK \RXU RSSRVLWH KDQG     $V IDU

                                                                               DV VWUXFWXUDO ZHOGLQJ MXVW XVHV D ZHOGLQJ URG ZKLFK LW WDNHV PRUH
     $FFRUGLQJ WR WKH WHVWLPRQ\ JLYHQ EHIRUH WKH DGPLQLVWUDWLYH ODZ             VNLOO WR EHFRPH D 7,* ZHOGHU PRUH SUDFWLFH      1RUPDOO\ PRVW
MXGJH E\ m7RSSHUl 7KRPDV D .DPWHFK VXSHUYLVRU ZKR RYHUVDZ VWUXFWXUDO           SHRSOH VWDUW DV D VWUXFWXUDO ZHOGHU DQG WKHQ WKURXJK WLPH WKH\ JHW
SLSH ZRUN WKH GLIIHUHQFH EHWZHHQ VWUXFWXUDO ZHOGLQJ DQG 7,* ZHOGLQJ            PRUH H[SHULHQFH DQG EHFRPH D 7,* ZHOGHU
FDQ EH H[SODLQHG DV IROORZV