Court Opinion

ID: 2969934
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:00:45.520854+00
Date Added: 2024-06-11T12:09:53.891461
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    0LOOVDSVHWDOY7KRPSVRQHWDO           1R                       3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

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

SODLQWLIIVFDQQRWVHULRXVO\FRQWHQGWKDW&RQJUHVVLQWHQGHGWKH                             )LOH 1DPH DS

IHGHUDOHOHFWLRQVWDWXWHVWRSUHHPSWDGGLWLRQDO6WDWHPHDVXUHV
GHVLJQHGWRSURWHFWDJDLQVWIUDXG:HGHFOLQHWRDFFHSWDQ
DUJXPHQWWKDWZRXOGQHJDWHWKHDELOLW\RIWKH6WDWHVWRJXDUG          81,7('67$7(6&28572)$33($/6
DJDLQVW IUDXG LQ WKH H[HUFLVH RI WKH IXQGDPHQWDO ULJKW RI                        )257+(6,;7+&,5&8,7
YRWLQJ                                                                                     BBBBBBBBBBBBBBBBB
                        9,&RQFOXVLRQ
   8QGHUFRQIOLFWSUHHPSWLRQSULQFLSOHVIHGHUDOODZSUHHPSWV           0$57+$ / 0,//6$36 )5$1.         ;
6WDWHODZZKHQWKHWZRDFWXDOO\FRQIOLFW*XVWDIVRQ)G           s &217, 5$&+(/ ' &217,         
DW,QWKLVFDVHFRPSOLDQFHZLWKERWK7HQQHVVHHjV(DUO\                                              
9RWLQJ6WDWXWHVDQGWKHIHGHUDOHOHFWLRQGD\VWDWXWHVGRHVQRW                   3ODLQWLIIV$SSHOODQWV
                                                                                                             1R
SUHVHQWmDSK\VLFDOLPSRVVLELOLW\l)ORULGD/LPH	$YRFDGR                                                
*URZHUV86DWEHFDXVHWKHFRPELQHGDFWLRQV                           Y                      !
                                                                                                           
RI YRWHUV DQG RIILFLDOV PHDQW WR PDNH D ILQDO VHOHFWLRQ RI                                       
IHGHUDO RIILFHKROGHUVnZLWKLQ WKH PHDQLQJ RI )RVWHU Y             %522. 7+203621LQKLV             
/RYHnRFFXU RQ IHGHUDO HOHFWLRQ GD\  1RU GR WKH 7(96           RIILFLDOFDSDFLW\DV7HQQHVVHH 
mVWDQG>@DVDQREVWDFOHWRWKHDFFRPSOLVKPHQWDQGH[HFXWLRQ                                                
RIWKHIXOOSXUSRVHVDQGREMHFWLYHVRI&RQJUHVVl+LQHV           &RRUGLQDWRURI(OHFWLRQV
                                                                        5,/(< & '$51(//LQKLV           
86DW3XWDQRWKHUZD\WKHUHLVQRUHDVRQWRWKLQNWKDW                                             
VLPSO\EHFDXVH&RQJUHVVHVWDEOLVKHGDIHGHUDOHOHFWLRQGD\LW           RIILFLDOFDSDFLW\DV6HFUHWDU\     
GLVSODFHGDOO6WDWHUHJXODWLRQRIWKHWLPHVIRUKROGLQJIHGHUDO         RI6WDWHRI7HQQHVVHH             
HOHFWLRQV                                                                       'HIHQGDQWV$SSHOOHHV 
  7KH 6WDWH PD\ PDNH UHJXODWLRQV RQ WKH VXEMHFW >RI                                                
  KROGLQJ HOHFWLRQV IRU UHSUHVHQWDWLYHV WR &RQJUHVV@                                               1
  &RQJUHVVPD\PDNHUHJXODWLRQVRQWKHVDPHVXEMHFWRU                        $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
  PD\DOWHURUDGGWRWKRVHDOUHDG\PDGH7KHSDUDPRXQW                  IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW&KDWWDQRRJD
  FKDUDFWHU RI WKRVH PDGH E\ &RQJUHVV KDV WKH HIIHFW WR          1Rn5$OODQ(GJDU&KLHI'LVWULFWsXGJH
  VXSHUVHGHWKRVHPDGHE\WKH6WDWHVRIDUDVWKHWZRDUH
  LQFRQVLVWHQWDQGQRIDUWKHU7KHUHLVQRVXFKFRQIOLFW                                  $UJXHG$SULO
  EHWZHHQWKHPDVWRSUHYHQWWKHLUIRUPLQJDKDUPRQLRXV
  V\VWHP SHUIHFWO\ FDSDEOH RI EHLQJ DGPLQLVWHUHG DQG                            'HFLGHGDQG)LOHG$XJXVW
  FDUULHGRXWDVVXFK
                                                                           %HIRUH5<$1DQG%$7&+(/'(5&LUFXLWsXGJHV
([ 3DUWH 6LHEROG  86 DW  HPSKDVLV DGGHG                            0$7,$'LVWULFWsXGJH
7HQQHVVHH ODZ LQWHUDFWV ZLWK IHGHUDO ODZ WR IRUP D
KDUPRQLRXVV\VWHPIRUWKHDGPLQLVWUDWLRQRIIHGHUDOHOHFWLRQV
DWOHDVWVRIDUDVWKHLUWLPLQJLVFRQFHUQHG$FFRUGLQJO\ZH             
                                                                            7KH +RQRUDEOH 3DXO 5 0DWLD 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
DIILUPWKHMXGJPHQWRIWKHGLVWULFWFRXUW                             1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

                                                                                                          
     0LOOVDSVHWDOY7KRPSVRQHWDO             1R       1R            0LOOVDSVHWDOY7KRPSVRQHWDO        

                      BBBBBBBBBBBBBBBBB                                  SUHHPSWV6WDWHODZZKHQWKHODWWHUmVWDQGVDVDQREVWDFOHWR
                                                                         WKH    H[HFXWLRQ RI WKH IXOO SXUSRVHV DQG REMHFWLYHV RI
                           &2816(/                                       &RQJUHVVl
$5*8('  0 0LOOHU %DNHU 0F'(50277 :,// 	                         7KHSODLQWLIIVDUJXHWKDWWKH(DUO\9RWLQJ6WDWXWHVFRQIOLFW
(0(5< :DVKLQJWRQ '& IRU $SSHOODQWV  0LFKDHO :              ZLWK IHGHUDO ODZ EHFDXVH WKH\ LQWHUIHUH ZLWK WKH PHWKRG
&DWDODQR 2)),&( 2) 7+( $77251(< *(1(5$/                           &RQJUHVVFKRVHWRHQVXUHWKHLQWHJULW\RIHOHFWLRQV,QWKH
1DVKYLOOH7HQQHVVHHIRU$SSHOOHH21%5,()00LOOHU                SODLQWLIIVjYLHZWKDWWKH7(96PDNHYRWLQJPRUHFRQYHQLHQW
%DNHU0F'(50277:,//	(0(5<:DVKLQJWRQ'&                        DQGDFFHVVLEOHDQGFRQWDLQWKHLURZQVDIHJXDUGVDJDLQVWIUDXG
&DPHURQ 6 +LOO %$.(5 '21(/621 %($50$1 	                        KDVQRUHOHYDQFHWRWKHSUHHPSWLRQDQDO\VLV,QVWHDGEHFDXVH
&$/':(// &KDWWDQRRJD 7HQQHVVHH 0LFKDHO 6 1DGHO                 m&RQJUHVV VHWWOHG XSRQ GHFODULQJ D VLQJOH XQLIRUP GD\ IRU
sDPHV0LFKDHO/HKPDQQ&$55*22'621	:$51(5                           YRWLQJDVDPHWKRGIRUSUHYHQWLQJHOHFWLRQIUDXGlWKH7(96
:DVKLQJWRQ '& IRU $SSHOODQWV  0LFKDHO : &DWDODQR           PXVWDGKHUHWRWKHFRQJUHVVLRQDOO\FKRVHQPHWKRG
2)),&( 2) 7+( $77251(< *(1(5$/ 1DVKYLOOH
7HQQHVVHHIRU$SSHOOHH                                                    :HUHMHFWWKHSODLQWLIIVjDUJXPHQWIRUWZRUHDVRQV)LUVW
                                                                         WKH OHJLVODWLYH KLVWRU\ VXJJHVWV WKDW &RQJUHVV HVWDEOLVKHG D
                      BBBBBBBBBBBBBBBBB                                  XQLIRUP IHGHUDO HOHFWLRQ GD\ WR IXOILOO PXOWLSOH REMHFWLYHV
                                                                         6SHFLILFDOO\&RQJUHVVVRXJKWWRSUHYHQWHDUO\HOHFWLRQVLQRQH
                          23,1,21                                        6WDWHIURPLQIOXHQFLQJWKRVHLQ6WDWHVYRWLQJODWHUWRUHPRYH
                      BBBBBBBBBBBBBBBBB                                  WKHEXUGHQRIYRWLQJLQPXOWLSOHHOHFWLRQVLQDVLQJOH\HDUDQG
                                                                         WR PLQLPL]H WKH RSSRUWXQLW\ IRU YRWHUV WR FDVW EDOORWV LQ
   $/,&( 0 %$7&+(/'(5 &LUFXLW sXGJH  0DUWKD /                 HOHFWLRQVKHOGLQPRUHWKDQRQH6WDWH/RYH)GDW
0LOOVDSV)UDQNs&RQWLDQG5DFKHO'&RQWLDOORIZKRP               %XVEHH  ) 6XSS DW   $W PRVW &RQJUHVV KDV
KDYHSUHYLRXVO\YRWHGLQIHGHUDOHOHFWLRQVKHOGLQ7HQQHVVHH             GHPRQVWUDWHGFRQFHUQIRUIUDXGRQO\LQWKHQDUURZHVWVHQVH
DQG LQWHQG WR GR VR DJDLQ EURXJKW VXLW XQGHU  86&        WKDWRIYRWLQJLQIHGHUDOHOHFWLRQVKHOGLQPRUHWKDQRQH6WDWH
DOOHJLQJWKDW7HQQHVVHHjVHDUO\YRWLQJV\VWHPFRQIOLFWV           ,QDQ\HYHQW&RQJUHVVGLGQRWHVWDEOLVKDIHGHUDOHOHFWLRQGD\
ZLWKIHGHUDOVWDWXWHVWKDWHVWDEOLVKWKHILUVW7XHVGD\DIWHUWKH         VROHO\IRUSXUSRVHVRIFRPEDWLQJIUDXGHYHQLQWKLVOLPLWHG
ILUVW 0RQGD\ LQ 1RYHPEHU LQ HYHQQXPEHUHG \HDUV DV                VHQVH  $FFRUGLQJO\ WKH GD\ UHSUHVHQWV WKH PHDQV RI
HOHFWLRQ GD\ IRU IHGHUDO RIILFHKROGHUV GLOXWHV WKHLU ULJKW WR   DFFRPSOLVKLQJWKHFRPELQHGREMHFWLYHVXQGHUO\LQJHQDFWPHQW
YRWHDQGLPSHGHVWKHLUDELOLW\WRSDUWLFLSDWHLQSROOZDWFKLQJ          RIWKHIHGHUDOVWDWXWHVDQGWKH(DUO\9RWLQJ6WDWXWHVGRQRW
SURJUDPV7KHFRPSODLQWQDPHGWKH7HQQHVVHH&RRUGLQDWRU                 VWDQGDVDQREVWDFOHWRVXEVWDQWLDODFKLHYHPHQWRIWKHVHJRDOV
RI(OHFWLRQVDQGWKH6HFUHWDU\RI6WDWHRI7HQQHVVHHLQWKHLU
RIILFLDOFDSDFLWLHVDVGHIHQGDQWVDQGVRXJKWGHFODUDWRU\DQG               6HFRQG XQGHU WKH SODLQWLIIVj DUJXPHQW WKDW &RQJUHVV
LQMXQFWLYHUHOLHIFRVWVDQGDWWRUQH\VjIHHV                           HVWDEOLVKHGDVLQJOHGD\IRUYRWLQJWRSUHYHQWHOHFWLRQIUDXG
                                                                         IHGHUDO ODZ ZRXOG SUHHPSW DOO 6WDWH VWDWXWHV DLPHG DW
   3ODLQWLIIVSURPSWO\PRYHGIRUVXPPDU\MXGJPHQWDQGWKH               SURWHFWLQJDJDLQVWIUDXGLQIHGHUDOHOHFWLRQVEHFDXVHOLPLWLQJ
GHIHQGDQWV UHVSRQGHG E\ VHHNLQJ GLVPLVVDO XQGHU 5XOH               YRWLQJ WR WKDW GD\ LWVHOI ZRXOG VHW WKH RXWHU OLPLWV RI WKH
ERIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH)ROORZLQJ             VDIHJXDUGVGHHPHGQHFHVVDU\WRDFKLHYLQJWKDWJRDOsXVWDV
D KHDULQJ RQ WKH PDWWHU WKH GLVWULFW FRXUW LVVXHG D            WKHSODLQWLIIVjSRVLWLRQDVNVWRRPXFKEHFDXVHLWFDQQRWLQD
PHPRUDQGXPRSLQLRQJUDQWLQJWKHGHIHQGDQWVjPRWLRQZKLFK                SULQFLSOHG IDVKLRQ GLVWLQJXLVK DEVHQWHH YRWLQJ VR WRR WKH
LWFRQYHUWHGWRRQHIRUVXPPDU\MXGJPHQWSXUVXDQWWR5XOH
    0LOOVDSVHWDOY7KRPSVRQHWDO             1R       1R           0LOOVDSVHWDOY7KRPSVRQHWDO           

YRWLQJVWDWXWHVDQGKDOIKHDUWHGO\PDLQWDLQWKDWDFRXUWFRXOG            E DQG GHQ\LQJ WKDW RI WKH SODLQWLIIV  6HH JHQHUDOO\
H[FXVHVXFKDGHPLQLPLVYLRODWLRQRIWKHIHGHUDOHOHFWLRQGD\           0LOOVDSVY7KRPSVRQ)6XSSG('7HQQ
VWDWXWHVm>7@KHYHQHUDEOHPD[LPGHPLQLPLVQRQFXUDWOH[               7KLVWLPHO\DSSHDOIROORZHGDQGUDLVHVWKHTXHVWLRQZKHWKHU
µWKH ODZ FDUHV QRW IRU WULIOHVj LV SDUW RI WKH HVWDEOLVKHG   7HQQHVVHHjVHDUO\YRWLQJV\VWHPFRQIOLFWVZLWKIHGHUDOVWDWXWHV
EDFNJURXQGRIOHJDOSULQFLSOHVDJDLQVWZKLFKDOOHQDFWPHQWV              HVWDEOLVKLQJ WKH ILUVW 7XHVGD\ DIWHU WKH ILUVW 0RQGD\ LQ
DUH DGRSWHG DQG ZKLFK DOO HQDFWPHQWV DEVHQW FRQWUDU\            1RYHPEHU DV IHGHUDO HOHFWLRQ GD\  :H ZLOO DIILUP WKH
LQGLFDWLRQ DUH GHHPHG WR DFFHSWl  :LVFRQVLQ 'HSjW RI           MXGJPHQWRIWKHGLVWULFWFRXUW
5HYHQXH Y :LOOLDP :ULJOH\ sU &R  86  
)LQGLQJVXFKDQH[FHSWLRQKHUHZRXOGFUHDWHDWOHDVW                       ,7HQQHVVHHjV(DUO\9RWLQJ6WDWXWHV
WZRSUREOHPV)LUVWWKHSODLQWLIIVDVNXVWRDFFHSWWKDWWKH
OHJLVODWLYH KLVWRU\ RI WKH IHGHUDO VWDWXWHV HYLQFHV D FOHDU         7HQQHVVHH KROGV HOHFWLRQV IRU 0HPEHUV RI &RQJUHVV
FRQJUHVVLRQDOLQWHQWWRHVWDEOLVKDVLQJOHGD\IRUYRWLQJ\HW           8QLWHG 6WDWHV 6HQDWRUV (OHFWRUV IRU 3UHVLGHQW DQG 9LFH
VRPHKRZ FRXQWHQDQFHV GH PLQLPLV H[FHSWLRQV GHVSLWH                 3UHVLGHQWDQGYDULRXVVWDWHRIILFHUVmDWWKHUHJXODU1RYHPEHU
DPRQJRWKHUWKLQJVWKHFRQWUDU\H[DPSOHRIWKH$FW                HOHFWLRQl7(11 &2'( $116XSS6LQFH
7KHVDPHOHJLVODWLYHKLVWRU\RQZKLFKWKHSODLQWLIIVUHO\WR             WKH7HQQHVVHH&RQVWLWXWLRQKDVVSHFLILHGWKHGDWHIRU
PDNH WKHLU DUJXPHQW ZRXOG DSSHDU WR SURYLGH D mFRQWUDU\          WKLVHOHFWLRQDVmWKHILUVW7XHVGD\DIWHUWKHILUVW0RQGD\LQ
LQGLFDWLRQlDQGUXOHRXWDQ\H[FHSWLRQV6HFRQGUHFRJQLWLRQ            1RYHPEHU  6DLG HOHFWLRQV VKDOO WHUPLQDWH WKH VDPH GD\l
RIDGHPLQLPLVH[FHSWLRQIRUDEVHQWHHYRWLQJLQYLWHVDUELWUDU\          7(11 &2167DUW,,6LQFH7HQQHVVHHODZKDVDOVR
OLQHGUDZLQJDVFRXUWVVWUXJJOHWRLGHQWLI\WKHSRLQWDWZKLFK           DOORZHG WKRVH DEVHQW RQ HOHFWLRQ GD\ IURP WKH FRXQW\ LQ
YRWLQJRFFXUVRQGD\VRWKHUWKDQIHGHUDOHOHFWLRQGD\WRVXFK            ZKLFKWKH\DUHUHJLVWHUHGWRYRWHWRFDVWEDOORWVE\PDLOSULRU
DQH[WHQWWKDWD6WDWHjVDEVHQWHHYRWLQJVWDWXWHVFRQIOLFWZLWK          WR HOHFWLRQ GD\  7(11 &2'( $11    6HH DOVR
IHGHUDOODZ:HVLPSO\FDQQRWDFFHSWWKHJUDYHLPSOLFDWLRQV             +LOOLDUGY3DUN6:G7HQQ
RIWKHSODLQWLIIVjDUJXPHQWV
                                                                           ,QWKH7HQQHVVHH*HQHUDO$VVHPEO\HQDFWHGDV\VWHP
 ()UXVWUDWLRQRI&RQJUHVVLRQDO3XUSRVHVDQG2EMHFWLYHV                IRU HDUO\ YRWLQJ WR HQDEOH UHJLVWHUHG YRWHUV WR FDVW EDOORWV
                                                                         GXULQJDVSHFLILHGSHULRGSULRUWRWKHGD\VFKHGXOHGIRUWKH
  m,GHQWLW\RIHQGVGRHVQRWHQGRXUDQDO\VLVRISUHHPSWLRQl            UHJXODU 1RYHPEHU HOHFWLRQ  7HQQHVVHHjV (DUO\ 9RWLQJ
&URVE\Y1DWLRQDO)RUHLJQ7UDGH&RXQFLO86              6WDWXWHV m(DUO\ 9RWLQJ 6WDWXWHVl RU m7(96l FUHDWH D
Q  FLWLQJ :LVFRQVLQ 'HSjW RI ,QGXV /DERU 	           SURFHGXUHIRUWKRVHZLVKLQJWRYRWHSULRUWRHOHFWLRQGD\
+XPDQ5HODWLRQVY*RXOG,QF86
:KHQWKHODZRID6WDWHVKDUHVWKHVDPHJRDODVIHGHUDOODZ               $YRWHUZKRGHVLUHVWRYRWHHDUO\VKDOOJRWRWKHFRXQW\
IHGHUDOODZZLOOSUHHPSWWKH6WDWHODZLILWmLQWHUIHUHVZLWKWKH          HOHFWLRQFRPPLVVLRQRIILFHZLWKLQWKHSRVWHGKRXUVQRW
PHWKRGVE\ZKLFKWKHIHGHUDOVWDWXWHZDVGHVLJQHGWRUHDFK                 PRUHWKDQWZHQW\GD\VQRUOHVVWKDQILYHGD\V
WKLVJRDOl,QWHUQDWLRQDO3DSHU&RY2XHOOHWWH86                EHIRUHWKHGD\RIWKHHOHFWLRQ$YRWHUGHVLULQJWRYRWHLQ
6HHDOVR*HLHUY$PHULFDQ+RQGD0RWRU                   WKH HDUO\ YRWLQJ SHULRG VKDOO VLJQ DQ DSSOLFDWLRQ IRU D
&R86$FRPPRQHQGZLOOQRW                   EDOORW
QHXWUDOL]H FRQIOLFWLQJ PHDQV  &URVE\  86 DW 
7KHUHIRUHWRVXUYLYHSUHHPSWLRQDQDO\VLV6WDWHODZPXVWQRW             7(11 &2'( $11 DHPSKDVLVDGGHG:KHQ
mDFWXDOO\FRQIOLFWlZLWKWKHPHDQV&RQJUHVVFKRVHWRHIIHFWLWV          DQ HDUO\ YRWHU FDVWV D EDOORW LQ DFFRUGDQFH ZLWK WKH (DUO\
SXUSRVH  +LQHV  86 DW  VWDWLQJ WKDW IHGHUDO ODZ      9RWLQJ6WDWXWHVFRXQW\HOHFWLRQRIILFLDOVGRQRWLPPHGLDWHO\
                                                                         FRXQWWKHYRWHUDWKHUWKH\KROGWKHEDOORWVRIHDUO\YRWHUV
     0LOOVDSVHWDOY7KRPSVRQHWDO             1R        1R             0LOOVDSVHWDOY7KRPSVRQHWDO         

XQWLOWKHFORVHRIDOOSROOLQJSODFHVRQWKHILUVW7XHVGD\DIWHU          86 DW  ZH DFNQRZOHGJH WKDW WKH UHPDUNV RI
WKHILUVW0RQGD\LQ1RYHPEHUWKHQUHFRUGWKHHDUO\YRWHV                 5HSUHVHQWDWLYH%XWOHUDQG6HQDWRU7UXPEXOOOHQGVXSSRUWWR
DORQJZLWKDEVHQWHHYRWHV,GH,QFRQWUDVWWR             WKHSODLQWLIIVjLQWHUSUHWDWLRQRIWKHVWDWXWH$GGLWLRQDOO\WKH
DEVHQWHHYRWLQJZKLFKUHTXLUHVDYRWHUWRLGHQWLI\RQHRID              6HQDWHjV UHMHFWLRQ RI DQ DPHQGPHQW WR DOORZ YRWLQJ RQ
IHZVSHFLILFDOO\HQXPHUDWHGUHDVRQVIRUYRWLQJDEVHQWHHLG              PXOWLSOH GD\V LQ FRQJUHVVLRQDO HOHFWLRQV VXJJHVWV WKDW WKH
WKH7(96DOORZDQ\UHJLVWHUHGYRWHUWRYRWH             /HJLVODWLYH%UDQFKLQWHQGHGWKHIHGHUDOHOHFWLRQGD\VWDWXWHV
HDUO\ LI KH RU VKH ZLVKHV  ,G  D  7KH (DUO\   WR HVWDEOLVK D VLQJOH GD\ IRU YRWLQJ  &I ,16 Y &DUGR]D
9RWLQJ6WDWXWHVFOHDUO\VHWIRUWKWKHUDWLRQDOHIRUWKLVV\VWHP          )RQVHFD86m)HZSULQFLSOHVRI
m7KHSXUSRVHRIWKLVSDUWLVWRHVWDEOLVKDQHDUO\YRWLQJSHULRG          VWDWXWRU\ FRQVWUXFWLRQ DUH PRUH FRPSHOOLQJ WKDQ WKH
ZKHQHOLJLEOHUHJLVWHUHGYRWHUVPD\YRWHEHIRUHDQHOHFWLRQDW            SURSRVLWLRQWKDW&RQJUHVVGRHVQRWLQWHQGVXEVLOHQWLRWRHQDFW
WKH FRXQW\ HOHFWLRQ FRPPLVVLRQ RIILFH RU DQRWKHU SROOLQJ           VWDWXWRU\ ODQJXDJH WKDW LW KDV HDUOLHU GLVFDUGHG LQ IDYRU RI
SODFH DSSURSULDWHO\ GHVLJQDWHG E\ WKH FRXQW\ HOHFWLRQ               RWKHU ODQJXDJHl  3DUWLFXODUO\ WURXEOLQJ LV WKH  $FW
FRPPLVVLRQl,GEHPSKDVLVDGGHG                          ZKLFKPRVWOLNHO\LPSOLHVDFRQJUHVVLRQDOXQGHUVWDQGLQJRI
                                                                          YRWLQJLQIHGHUDOHOHFWLRQVDVOLPLWHGWRDVLQJOHGD\:LWKRXW
  (DUO\YRWLQJKDVSURYHGWREHDSRSXODUPHWKRGIRUFDVWLQJ              TXHVWLRQWKH6XSUHPH&RXUWNQRZVRIWKLVOHJLVODWLYHKLVWRU\
EDOORWV  ,Q WKH  SUHVLGHQWLDO HOHFWLRQ  RI WKH      6HHHJ)RVWHU86DWUHO\LQJRQWKHUHPDUNVRI
YRWHVFDVWLQ7HQQHVVHHSHUFHQWZHUHHDUO\              5HSUHVHQWDWLYH %XWOHU WR LQWHUSUHW WKH IHGHUDO HOHFWLRQV
YRWHVDQDGGLWLRQDOYRWHUVUHSUHVHQWLQJSHUFHQW             VWDWXWHV1RQHWKHOHVVWKH&RXUWKDGQRWURXEOHGHILQLQJDQ
RIWKHWRWDOYRWHVFDVWLQ7HQQHVVHHYRWHGDEVHQWHH,QWKH             mHOHFWLRQlDVmWKHFRPELQHGDFWLRQVRIYRWHUVDQGRIILFLDOV
 SUHVLGHQWLDO HOHFWLRQ WKH QXPEHU RI HDUO\ YRWHV              PHDQWWRPDNHDILQDOVHOHFWLRQRIDQRIILFHKROGHUl,GDW
LQFUHDVHGGUDPDWLFDOO\RIWKHYRWHVFDVW              :KDWHYHURQHPDNHVRIWKHOHJLVODWLYHKLVWRU\SUHVHQWHGE\
 SHUFHQW ZHUH FDVW HDUO\ ZLWK DQ DGGLWLRQDO          WKH SODLQWLIIV ZH DUH ERXQG E\ )RVWHUjV GHILQLWLRQ RI
YRWHUVSHUFHQWFDVWLQJDEVHQWHHEDOORWV                           mHOHFWLRQl LQ WKHVH VWDWXWHV  8QGHU WKDW GHILQLWLRQ ZH
                                                                          FRQFOXGH WKDW XQGHU WKH 7(96 WKH mFRPELQHG DFWLRQV RI
    ,,6WDQGDUGRI5HYLHZDQG3UHHPSWLRQ6WDQGDUGV                      YRWHUV DQG RIILFLDOV PHDQW WR PDNH D ILQDO VHOHFWLRQ RI DQ
                                                                          RIILFHKROGHUlRFFXURQO\RQIHGHUDOHOHFWLRQGD\DVUHTXLUHG
  :HUHYLHZDGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWGH               E\IHGHUDOODZ
QRYRXVLQJWKHVDPHVWDQGDUGXQGHU5XOHFXVHGE\WKH
GLVWULFWFRXUW:LOOLDPVY0HKUD)GWK&LU              /LNHRWKHUFRXUWVWKDWKDYHFRQVLGHUHGWKHTXHVWLRQZHVHH
HQEDQF                                                          QRSULQFLSOHGGLVWLQFWLRQEHWZHHQWKH(DUO\9RWLQJ6WDWXWHVDW
                                                                          LVVXHLQWKLVFDVHDQGWKHPHFKDQLFVRIDEVHQWHHYRWLQJ,Q
  8QGHU WKH 6XSUHPDF\ &ODXVH RI WKH 8QLWHG 6WDWHV                  SUDFWLFDO HIIHFW WKHQ WKH SODLQWLIIVj DUJXPHQW ZRXOG DSSO\
&RQVWLWXWLRQmVWDWHODZVWKDWµLQWHUIHUHZLWKRUDUHFRQWUDU\           ZLWKHTXDOIRUFHWRDEVHQWHHYRWLQJDQGUHVXOWLQDGHFODUDWLRQ
WR WKH ODZV RI FRQJUHVV PDGH LQ SXUVXDQFH RI WKH                WKDWIHGHUDOODZSUHHPSWVDZLGHO\DFFHSWHGDQGORQJVWDQGLQJ
FRQVWLWXWLRQj DUH LQYDOLGl :LVFRQVLQ 3XE ,QWHUYHQRU Y            HOHFWRUDOSUDFWLFH5HFRJQL]LQJWKLVGLIILFXOW\WKHSODLQWLIIV
0RUWLHU  86    TXRWLQJ *LEERQV Y             SURWHVWWKDWWKH\KDYHQRWFKDOOHQJHG7HQQHVVHHjVDEVHQWHH
2JGHQ86:KHDW:KHWKHUIHGHUDO
ODZ SUHHPSWV VWDWH ODZ WXUQV SULQFLSDOO\ RQ FRQJUHVVLRQDO
LQWHQW  1RUWKZHVW &HQW 3LSHOLQH &RUS Y 6WDWH &RUS                
&RPPjQ RI .DQ  86     ,Q DQDO\]LQJ
                                                                               $OWHUQDWLYHO\ WKH 6HQDWH FRXOG KDYH YLHZHG DQ DPHQGPHQW WR DOORZ
                                                                          YRWLQJ RYHU PRUH WKDQ RQH GD\ DV XQQHFHVVDU\ VLQFH QRW IRUHFORVHG E\ WKH
SUHHPSWLRQmZHVWDUWZLWKWKHDVVXPSWLRQWKDWWKHKLVWRULF               VWDWXWRU\ ODQJXDJH DW LVVXH
    0LOOVDSVHWDOY7KRPSVRQHWDO           1R       1R          0LOOVDSVHWDOY7KRPSVRQHWDO        

          '([SUHVVLR8QLXV(VW([FOXVLR$OWHULXV                    SROLFHSRZHUVRIWKH6WDWHVZHUHQRWWREHVXSHUVHGHGE\WKH
                                                                       )HGHUDO$FWXQOHVVWKDWZDVWKHFOHDUDQGPDQLIHVWSXUSRVHRI
   7DNLQJDVRPHZKDWGLIIHUHQWWDFNLQPDNLQJWKHLUFRQIOLFW           &RQJUHVVl5LFHY6DQWD)H(OHYDWRU&RUS86
SUHHPSWLRQ DUJXPHQW WKH SODLQWLIIV LQYRNH WKH WUDGLWLRQDO       
FDQRQRIVWDWXWRU\LQWHUSUHWDWLRQH[SUHVVLRXQLXVHVWH[FOXVLR
DOWHULXV mWKH H[SUHVVLRQ RI RQH WKLQJ LV WKH H[FOXVLRQ RI       7KLVFRXUWZLOOJLYHSUHHPSWLYHHIIHFWWRIHGHUDOODZXQGHU
RWKHUVlDQGFODLPWKDWE\GHVLJQDWLQJWKHILUVW7XHVGD\DIWHU         WKUHHFLUFXPVWDQFHV/DUNLQY6WDWHRI 0LFKLJDQ'HSjWRI
WKHILUVW0RQGD\LQ1RYHPEHUDVmWKHGD\IRUWKHHOHFWLRQl             6RF6HUYV)GWK&LU)LUVWDIHGHUDO
&RQJUHVV HVWDEOLVKHG WKH H[FOXVLYH GD\ IRU KROGLQJ IHGHUDO      VWDWXWHPD\H[SUHVVO\SUHHPSWVWDWHODZ*XVWDIVRQY&LW\RI
HOHFWLRQVDQGSUHFOXGHGYRWLQJRQDQ\RWKHUGD\8QGHUWKH            /DNH$QJHOXV)G  WK&LUFLWLQJ
H[SUHVVLRXQLXVSULQFLSOHm>Z@KHQDVWDWXWHOLPLWVDWKLQJWR         3DFLILF*DV	(OHF&RY6WDWH(QHUJ\5HV&RQVHUYDWLRQ	
EHGRQHLQDSDUWLFXODUPRGHLWLQFOXGHVWKHQHJDWLYHRIDQ\          'HY&RPPjQ866HFRQGIHGHUDO
RWKHU PRGHl  1DWLRQDO 55 3DVVHQJHU &RUS Y 1DWLRQDO        ODZPD\LPSOLHGO\SUHHPSWVWDWHODZ,GFLWLQJ6LONZRRGY
$VVjQRI553DVVHQJHUV86TXRWLQJ            .HUU0F*HH &RUS  86     ,PSOLHG
%RWDQ\ :RUVWHG 0LOOV Y 8QLWHG 6WDWHV  86         SUHHPSWLRQRFFXUV
  7KHUHIRUH WKH SODLQWLIIV PDLQWDLQ m>E@HFDXVH
&RQJUHVVSURYLGHGIRURQHGD\IRUYRWLQJPXOWLSOHGD\YRWLQJ            LIDVFKHPHRIIHGHUDOUHJXODWLRQLVmVRSHUYDVLYHDVWR
LV QRW SHUPLWWHG XQGHU WKH SODLQ PHDQLQJ RI WKH )HGHUDO         PDNHUHDVRQDEOHWKHLQIHUHQFHWKDW&RQJUHVVOHIWQRURRP
(OHFWLRQ 'D\ 6WDWXWHVl  7R EROVWHU WKLV FRQFOXVLRQ WKH          IRUWKH6WDWHVWRVXSSOHPHQWLWlLImWKH$FWRI&RQJUHVV
SODLQWLIIVUHO\RQWKHOHJLVODWLYHKLVWRU\RIWKHIHGHUDOVWDWXWHV      WRXFKHV D ILHOG LQ ZKLFK WKH IHGHUDO LQWHUHVW LV VR
SDUWLFXODUO\WKH$FWJUDQWLQJ7H[DVSHUPLVVLRQWRFKRRVH            GRPLQDQW WKDW WKH IHGHUDO V\VWHP ZLOO EH DVVXPHG WR
SUHVLGHQWLDOHOHFWRUVWKDW\HDURQPRUHWKDQDVLQJOHGD\               SUHFOXGHHQIRUFHPHQWRIVWDWHODZVRQWKHVDPHVXEMHFWl
                                                                         RU LI WKH JRDOV mVRXJKW WR EH REWDLQHGl DQG WKH
  %\ GHILQLQJ DQ mHOHFWLRQl DV mWKH FRPELQHG DFWLRQV RI          mREOLJDWLRQVLPSRVHGlUHYHDODSXUSRVHWRSUHFOXGHVWDWH
YRWHUV DQG RIILFLDOV PHDQW WR PDNH D ILQDO VHOHFWLRQ RI DQ     DXWKRULW\
RIILFHKROGHUl)RVWHU86DWWKH6XSUHPH&RXUWKDV
IRUHFORVHG WKLV DUJXPHQW  6R ORQJ DV QR FRPELQHG DFWLRQ      0RUWLHU  86 DW  TXRWLQJ 5LFH  86 DW 
RFFXUVRQDQ\GD\RWKHUWKDQIHGHUDOHOHFWLRQGD\RUVRORQJ          DOWHUDWLRQVRPLWWHG7KLUGIHGHUDOODZSUHHPSWVVWDWHODZ
DVDQ\VXFKFRPELQHGDFWLRQLVQRWLQWHQGHGWRPDNHDILQDO            ZKHQWKHWZRDFWXDOO\FRQIOLFW*XVWDIVRQ)GDW
VHOHFWLRQRIDIHGHUDORIILFHKROGHUD6WDWHKDVFRPSOLHGZLWK         6WDWHDQGIHGHUDOODZDFWXDOO\FRQIOLFWZKHQmFRPSOLDQFHZLWK
WKHIHGHUDOHOHFWLRQVVWDWXWHV3XWDQRWKHUZD\WKHSODLQWLIIVj      ERWKIHGHUDODQGVWDWHUHJXODWLRQVLVDSK\VLFDOLPSRVVLELOLW\l
DUJXPHQWDVVXPHVWKHDQVZHUWRWKHTXHVWLRQSUHVHQWHGE\               )ORULGD/LPH	$YRFDGR*URZHUV,QFY3DXO86
WKLVFDVHQDPHO\WKHVWDWXWRU\PHDQLQJRIDQmHOHFWLRQlXQGHU         RUZKHQDVWDWHODZmVWDQGVDVDQREVWDFOHWR
IHGHUDOODZ$QmHOHFWLRQlXQGHUWKHIHGHUDOVWDWXWHVUHTXLUHV        WKHDFFRPSOLVKPHQWDQGH[HFXWLRQRIWKHIXOOSXUSRVHVDQG
PRUHWKDQMXVWYRWLQJDQGWKH(DUO\9RWLQJ6WDWXWHVGRQRW            REMHFWLYHVRI&RQJUHVVl+LQHVY'DYLGRZLW]86
FUHDWH D UHJLPH RI FRPELQHG DFWLRQ PHDQW WR PDNH D ILQDO     
VHOHFWLRQRQDQ\GD\RWKHUWKDQIHGHUDOHOHFWLRQGD\
  ,Q OLJKW RI WKH LPSRUWDQFH RI FRQJUHVVLRQDO LQWHQW WR
SUHHPSWLRQ DQDO\VLV 1RUWKZHVW &HQW 3LSHOLQH &RUS 
      0LOOVDSVHWDOY7KRPSVRQHWDO            1R    1R            0LOOVDSVHWDOY7KRPSVRQHWDO         

       ,,,7KH(OHFWLRQV&ODXVHRIWKH8QLWHG6WDWHV                DGPLQLVWUDWLYH DFWLRQV QHFHVVDU\ XQGHU 7HQQHVVHH ODZ WR
                         &RQVWLWXWLRQ                                 ILQDOL]HWKHYRWHUVjSUHIHUHQFHIRUDFDQGLGDWHWKHSODLQWLIIVj
                                                                      IRFXV RQ WKH VLQJOH DFW RI UHFHLYLQJ D EDOORW IURP D YRWHU
   7KH (OHFWLRQV &ODXVH RI WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ      SUHVHQWV DQ XQQDWXUDO DQG VWLOWHG FRQFHSWLRQ RI WKH DFWLRQV
VWDWHV                                                               WDNHQE\RIILFLDOVXQGHU7HQQHVVHHjVHOHFWLRQODZVDQGORVHV
                                                                      VLJKW RI WKH IDFW WKDW DQ RIILFLDOjV PHUH UHFHLSW RI D EDOORW
    7KH7LPHV3ODFHVDQG0DQQHURIKROGLQJ(OHFWLRQVIRU             ZLWKRXWPRUHLVQRWDQDFWPHDQWWRPDNHDILQDOVHOHFWLRQ
    6HQDWRUVDQG5HSUHVHQWDWLYHVVKDOOEHSUHVFULEHGLQHDFK
    6WDWHE\WKH/HJLVODWXUHWKHUHRIEXWWKH&RQJUHVVPD\DW           ,QIDFW)RVWHUjVQDUURZKROGLQJVXJJHVWVWKDWVRORQJDVD
    DQ\WLPHE\/DZPDNHRUDOWHUVXFK5HJXODWLRQVH[FHSW            6WDWHGRHVQRWFRQFOXGHDQHOHFWLRQSULRUWRIHGHUDOHOHFWLRQ
    DVWRWKH3ODFHVRIFKXVLQJ6HQDWRUV                             GD\WKH6WDWHjVODZZLOOQRWmDFWXDOO\FRQIOLFWlZLWKIHGHUDO
                                                                      ODZ)RVWHU86DW	Q7RVXSSRUWWKHLUSRVLWLRQ
86 & $%DUW,FO/LNHZLVHWKHFRXQWHUSDUWWRWKH      WKHSODLQWLIIVILQHO\SDUVH)RVWHUjVODQJXDJHDQGFKDUDFWHUL]H
(OHFWLRQV&ODXVHIRUWKH([HFXWLYH%UDQFKSURYLGHVm7KH             WKH 6XSUHPH &RXUW DV GUDZLQJ D GLVWLQFWLRQ EHWZHHQ WKH
&RQJUHVVPD\GHWHUPLQHWKH7LPHRIFKXVLQJWKH(OHFWRUV              DFWLRQV WKDW PXVW WDNH SODFH RQ IHGHUDO HOHFWLRQ GD\ WR
DQGWKH'D\RQZKLFKWKH\VKDOOJLYHWKHLU9RWHVZKLFK'D\           FRQVWLWXWHDQmHOHFWLRQlDQGWKHmILQDODFWRIVHOHFWLRQlRIDQ
VKDOOEHWKHVDPHWKURXJKRXWWKH8QLWHG6WDWHVl,GDUW,,        RIILFHKROGHUZKLFKFDQRFFXUDIWHUIHGHUDOHOHFWLRQGD\LIRQH
FO                                                           RI WKH H[FHSWLRQV LQ  86&   DSSOLHV  ,Q OLJKW RI WKH
                                                                      &RXUWjVH[SUHVVGLVDYRZDOLQ)RVWHUWKDWLWZDVHVWDEOLVKLQJ
   2QQXPHURXVRFFDVLRQVWKH6XSUHPH&RXUWKDVH[SRXQGHG              DQ\SDUWLFXODUDFWLRQVD6WDWHPXVWSHUIRUPRQHOHFWLRQGD\WR
WKHPHDQLQJRIWKHVHFODXVHV8QGHUWKH(OHFWLRQV&ODXVH            FRPSO\ZLWKWKHIHGHUDOVWDWXWHVWKLVUHDGLQJVLPSO\DVNVWRR
mWKHVWDWHVDUHJLYHQ>@DQGLQIDFWH[HUFLVHZLGHGLVFUHWLRQLQ       PXFK  $OWKRXJK WKH SODLQWLIIV UDLVH WKH VSHFWHU RI 6WDWHV
WKHIRUPXODWLRQRIDV\VWHPIRUWKHFKRLFHE\WKHSHRSOHRI           VFKHGXOLQJ YRWLQJ WR RFFXU DW WLPHV HQWLUHO\ UHPRYHG IURP
UHSUHVHQWDWLYHVLQ&RQJUHVVl8QLWHG6WDWHVY&ODVVLF          IHGHUDOHOHFWLRQGD\DQGVLPSO\FRXQWLQJEDOORWVRQWKHILUVW
867KHSRZHURIWKH6WDWHVWRSUHVFULEH           7XHVGD\ DIWHU WKH ILUVW 0RQGD\ LQ 1RYHPEHU RVWHQVLEO\
WKH mWLPHV SODFHV DQG PDQQHUl IRU HOHFWLQJ IHGHUDO            FRPSO\LQJ ZLWK )RVWHU ZKLOH LQ IDFW PDQLSXODWLQJ IHGHUDO
UHSUHVHQWDWLYHVHQFRPSDVVHVQHDUO\HYHU\SURFHGXUDOIDFHWRI          HOHFWLRQV WKLV FDVH GRHV QRW SUHVHQW VXFK D VFHQDULR
DIHGHUDOHOHFWLRQ                                                   7HQQHVVHHjVVWDWXWHUHTXLUHVVXEVWDQWLDORIILFLDODFWLRQRQWKH
                                                                      FRQJUHVVLRQDOO\ SUHVFULEHG GD\ DQG FRQVLGHUDEOH YRWLQJ
    ,W FDQQRW EH GRXEWHG WKDW WKHVH FRPSUHKHQVLYH ZRUGV        FRQWLQXHV WR WDNH SODFH RQ HOHFWLRQ GD\ LWVHOI  )XUWKHU
    HPEUDFH DXWKRULW\ WR SURYLGH D FRPSOHWH FRGH IRU           7HQQHVVHH KDV GUDIWHG LWV HOHFWLRQ FRGH DURXQG IHGHUDO
    FRQJUHVVLRQDOHOHFWLRQVQRWRQO\DVWRWLPHVDQGSODFHV         HOHFWLRQ GD\  6HH HJ 7 &  $  
    EXW LQ UHODWLRQ WR QRWLFHV UHJLVWUDWLRQ VXSHUYLVLRQ RI   FDOFXODWLQJ GHDGOLQHV IRU TXDOLI\LQJ IRU SODFHPHQW RI D
    YRWLQJ SURWHFWLRQ RI YRWHUV SUHYHQWLRQ RI IUDXG DQG      FDQGLGDWHjVQDPHRQWKHEDOORWE\UHIHUHQFHWRIHGHUDOHOHFWLRQ
    FRUUXSWSUDFWLFHVFRXQWLQJRIYRWHVGXWLHVRILQVSHFWRUV        GD\  D DOORZLQJ HDUO\ YRWHUV WR FDVW EDOORWV
    DQGFDQYDVVHUVDQGPDNLQJDQGSXEOLFDWLRQRIHOHFWLRQ            mEHIRUHWKHGD\RIWKHHOHFWLRQl
    UHWXUQVLQVKRUWWRHQDFWWKHQXPHURXVUHTXLUHPHQWVDV
    WRSURFHGXUHDQGVDIHJXDUGVZKLFKH[SHULHQFHVKRZVDUH
    QHFHVVDU\ LQ RUGHU WR HQIRUFH WKH IXQGDPHQWDO ULJKW
    LQYROYHG$OOWKLVLVFRPSULVHG LQWKHVXEMHFWRI
    mWLPHVSODFHVDQGPDQQHURIKROGLQJHOHFWLRQV>@l
       0LOOVDSVHWDOY7KRPSVRQHWDO                    1R         1R            0LOOVDSVHWDOY7KRPSVRQHWDO          

$$ VOLS RS DW    1R FRXUW KDV JLYHQ VHULRXV                  6PLOH\ Y +ROP  86     2I FRXUVH
FRQVLGHUDWLRQWRWKHLVVXHOHIWRSHQE\WKH6XSUHPH&RXUWLQ                         &RQJUHVVFDQRYHUULGHVWDWHHOHFWLRQUHJXODWLRQVSXUVXDQWWR
)RVWHUUHJDUGLQJZKLFKDFWLRQVPXVWRFFXURQIHGHUDOHOHFWLRQ                        LWV SRZHU WR mPDNH RU DOWHU VXFK UHJXODWLRQVl  &RRN Y
GD\ LQ RUGHU IRU D 6WDWHjV HOHFWLRQ VWDWXWH WR FRPSO\ ZLWK                 *UDOLNH866&W7KLV
IHGHUDOODZ                                                                         mPDNHRUDOWHUlSRZHUVZHHSVEURDGO\([3DUWH6LHEROG
                                                                                     86m&RQJUHVVE\LWVSRZHUWRPDNHRU
     &$QDO\VLVRIWKH(DUO\9RWLQJ6WDWXWHVXQGHU)RVWHU                          DOWHUWKHUHJXODWLRQVKDVDJHQHUDOVXSHUYLVRU\SRZHURYHUWKH
                                                                                     ZKROH VXEMHFW>@l  m7KH SKUDVH µVXFK UHJXODWLRQVj SODLQO\
  2QDSSHDOWKHSODLQWLIIVFRQWHQGWKDWmWKHFDVWLQJRIEDOORWV                      UHIHUV WR UHJXODWLRQV RI WKH VDPH JHQHUDO FKDUDFWHU WKDW WKH
E\WKHHOHFWRUDWHDWODUJHWKDWLVWKHHOHFWRUDWHjVFROOHFWLYH                     OHJLVODWXUHRIWKH6WDWHLVDXWKRUL]HGWRSUHVFULEHZLWKUHVSHFW
PDUNLQJ DQG GHSRVLWLQJ RI EDOORWV ZLWK HOHFWLRQ RIILFLDOVl                   WR FRQJUHVVLRQDO HOHFWLRQV  ,Q H[HUFLVLQJ WKLV SRZHU WKH
VDWLVILHVWKH)RVWHUGHILQLWLRQ7KHSODLQWLIIVDVVHUWWKDWWKH                     &RQJUHVV PD\ VXSSOHPHQW WKHVH VWDWH UHJXODWLRQV RU PD\
7(96 FRQIOLFW ZLWK IHGHUDO ODZ E\ DOORZLQJ YRWHUV WR                         VXEVWLWXWHLWVRZQl6PLOH\86DW,QVKRUWWKH
SDUWLFLSDWH LQ WKH ILQDO VHOHFWLRQ RI RIILFHKROGHUV SULRU WR                 (OHFWLRQV&ODXVHRIWKH&RQVWLWXWLRQmLVDGHIDXOWSURYLVLRQ
IHGHUDOHOHFWLRQGD\E\PDUNLQJDEDOORWDQGWHQGHULQJLWWRD                       LWLQYHVWVWKH6WDWHVZLWKUHVSRQVLELOLW\IRUWKHPHFKDQLFVRI
ORFDOHOHFWLRQRIILFLDO%HFDXVHWKLVDUJXPHQWRYHUORRNVWKH                        FRQJUHVVLRQDOHOHFWLRQVEXWRQO\VRIDUDV&RQJUHVVGHFOLQHV
6XSUHPH&RXUWjVVLOHQFHLQ)RVWHUDVWRZKLFKDFWVD6WDWH                           WRSUHHPSWVWDWHOHJLVODWLYHFKRLFHVl)RVWHUY/RYH86
PXVWWDNHRQIHGHUDOHOHFWLRQGD\DQGQRWHDUOLHU)RVWHU                       FLWDWLRQVRPLWWHG
86DWZHGLVDJUHH$OWKRXJKWKHSODLQWLIIVPDLQWDLQWKDW
WKHUHFHLSWRIEDOORWVSULRUWRIHGHUDOHOHFWLRQGD\E\HOHFWLRQ                        %\ FUHDWLQJ D FRQJUHVVLRQDO FKHFN RQ WKH SRZHU RI WKH
RIILFLDOVFRQVWLWXWHVVXIILFLHQWFRPELQHGDFWLRQRIYRWHUVDQG                       6WDWHVWRUHJXODWHIHGHUDOHOHFWLRQVWKH)UDPHUVVRXJKWWRFXUE
RIILFLDOV WR YLRODWH IHGHUDO ODZ mILQDO VHOHFWLRQl RI DQ                    WKHSRWHQWLDOIRUDEXVHVE\WKH6WDWHVDQGWRJLYHWKHQDVFHQW
RIILFHKROGHUUHTXLUHVPRUHWKDQPHUHUHFHLSWRIEDOORWVFDVWE\                      QDWLRQDOJRYHUQPHQWWKHSRZHUWRSUHVHUYHLWVHOI867HUP
YRWHUV)RUH[DPSOHRQHOHFWLRQGD\RIILFLDOVPXVWFORVHDQG                       /LPLWV ,QF Y 7KRUQWRQ  86   
VHFXUHWKHSROOV7(11 &2'( $11WR                          FROOHFWLQJTXRWHVIURPsDPHV0DGLVRQ*RXYHUQHXU0RUULV
WRFRXQWWKHEDOORWVLGFRPSOHWH                      DQG $OH[DQGHU +DPLOWRQ H[SUHVVLQJ FRQFHUQ WKDW E\
DQGFHUWLI\RIILFLDOWDOO\VKHHWVLGDQGSXEOLFO\                       UHJXODWLQJIHGHUDOHOHFWLRQVWKH6WDWHVFRXOGPDQLSXODWHWKHLU
DQQRXQFH WKH UHVXOWV  ,G    :LWK VR PDQ\                       RXWFRPH RU FULSSOH WKH IXQFWLRQLQJ RI WKH QDWLRQDO
                                                                                     JRYHUQPHQW  6HH DOVR LG DW   7KRPDV s
                                                                                     GLVVHQWLQJ SURYLGLQJ DGGLWLRQDO HYLGHQFH IURP RWKHU
                                                                                    FRQWHPSRUDQHRXV ZULWLQJV WKDW WKH mPDNH RU DOWHUl SRZHU
      0RUHRYHU RIILFLDO DFWLRQ WR FRQILUP RU YHULI\ WKH UHVXOWV RI WKH
HOHFWLRQ   H[WHQGV   ZHOO   EH\RQG   IHGHUDO   HOHFWLRQ   GD\   FRXQW\   HOHFWLRQ
                                                                                     DIIRUGHG &RQJUHVV WKH PHDQV WR VXSSRUW WKH QDWLRQDO
RIILFLDOV PXVW PHHW WR YHULI\ DQG FHUWLI\ WKH UHVXOWV DQQRXQFHG RQ HOHFWLRQ
                                                                                     JRYHUQPHQWDQGSUHYHQWGLVVROXWLRQRIWKH8QLRQ:LWKRXW
GD\ LG    WR  SUHVHUYH SROOERRNV DQG EDOORWV LG           DFRQJUHVVLRQDORYHUULGHWKH)UDPHUVIHDUHGWKDWWKHH[LVWHQFH
 WR  DQG WUDQVPLW FHUWLILHG UHVXOWV DQG YDULRXV DGGLWLRQDO                 RIWKHIHGHUDOJRYHUQPHQWZRXOGGHSHQGXSRQWKHZLOOLQJQHVV
PDWHULDOV WR WKH VHFUHWDU\ RI VWDWH LG    ZKR WKHQ ZLWK WKH
                                                                                     RI WKH 6WDWHV WR KROG IHGHUDO HOHFWLRQV  ,G  6HH DOVR 7+(
JRYHUQRU DQG DWWRUQH\ JHQHUDO IRUPDOO\ DQQRXQFHV WKH RIILFLDO UHVXOWV ,G
                                                                                     )('(5$/,67 12 $OH[DQGHU+DPLOWRQ$GGLWLRQDOO\IRU
                                                                                     WKH )UDPHUV IHGHUDO XQLIRUPLW\ DVVXUHG WKDW 6WDWHV GLG QRW
  :H XQGHUVWDQG WKHVH SURFHGXUHV WR SDUDOOHO WKRVH GHVFULEHG E\
WKH 6XSUHPH &RXUW ZKHQ LW UHFHQWO\ FDWDORJXHG WKH DGPLQLVWUDWLYH DFWLRQV
RFFXUULQJ  LQ )ORULGD m>D@IWHU WKH HOHFWLRQ KDV WDNHQ SODFHl WR FRQFOXGH WKDW        FRQVSLUH WR WLPH HOHFWLRQV VR DV WR GHSULYH &RQJUHVV RI D
6WDWHjV HOHFWLRQ SURFHVV %XVK Y *RUH  86   6 &W               TXRUXP'2&80(17$5< +,6725< 2) 7+( 5$7,),&$7,21
 5HKQTXLVW &s FRQFXUULQJ
       0LOOVDSVHWDOY7KRPSVRQHWDO                 1R         1R           0LOOVDSVHWDOY7KRPSVRQHWDO         

2) 7+( &2167,787,21s.DPLQVNL	*6DODGLQRHGV                         GRHVQRWFRQIOLFWZLWKDQGLVWKHUHIRUHQRWSUHHPSWHGE\WKH
DUJXLQJWKDWLIWKH6WDWHVFKRVHWKHWLPHVIRUKROGLQJ                    IHGHUDOODZVGHVLJQDWLQJIHGHUDOHOHFWLRQGD\l,G
FRQJUHVVLRQDOHOHFWLRQVmWKHUHPLJKWKDYHEHHQDVPDQ\WLPHV
RIFKRRVLQJDVWKHUHDUH6WDWHVlDQGmVXFKLQWHUYDOVPLJKW                         /LNHWKHGLVWULFW FRXUWWKHRWKHUIHGHUDOFRXUWVWKDWKDYH
HODSVHEHWZHHQWKHILUVWDQGODVWHOHFWLRQDVWRSUHYHQWWKHUH                  FRQVLGHUHG DUJXPHQWV VLPLODU WR WKRVH DGYDQFHG E\ WKH
EHLQJ D VXIILFLHQW QXPEHU WR IRUP D +RXVHl UHPDUNV RI                 SODLQWLIIV KDYH GHIHUUHG WR WKH DXWKRULW\ RI )RVWHU  )RU
*HRUJH 1LFKRODV DW WKH 9LUJLQLD UDWLI\LQJ FRQYHQWLRQ                     LQVWDQFHWKH)LIWK&LUFXLWKHOGWKDWm>E@HFDXVHWKHHOHFWLRQRI
$FFRUGLQJO\ WKH (OHFWLRQV &ODXVH JLYHV &RQJUHVV mWKH                      IHGHUDO UHSUHVHQWDWLYHV LQ 7H[DV LV QRW GHFLGHG RU
FDSDFLW\ WR SUHVFULEH ERWK WKH GDWH DQG WKH PHFKDQLFV RI                µFRQVXPPDWHGjEHIRUHIHGHUDOHOHFWLRQGD\WKH7H[DVVFKHPH
FRQJUHVVLRQDO HOHFWLRQVl  7KRUQWRQ  86 DW                       LV QRW LQFRQVLVWHQW ZLWK WKH IHGHUDO HOHFWLRQ VWDWXWHV DV
7KRPDVsGLVVHQWLQJ2WKHU)UDPHUVMXVWLILHGWKH&ODXVH                    LQWHUSUHWHGE\WKHFRXUWLQ)RVWHUl9RWLQJ,QWHJULW\3URMHFW
RQWKHJURXQGWKDWIHGHUDOHOHFWLRQVVKRXOGEHmKHOGRQWKH                      ,QFY%RPHU)GWK&LUFHUWGHQLHG
VDPHGD\WKURXJKRXWWKH8QLWHG6WDWHVWRSUHYHQWFRUUXSWLRQ                     86)XUWKHUEDVHGRQWKHSODLQODQJXDJHRIWKH
RUXQGXHLQIOXHQFHl(//,27j6 '(%$7(6s(OOLRWHG                     IHGHUDOVWDWXWHVWKHFRXUWUHDVRQHGWKDWWKH6XSUHPH&RXUW
 UHPDUNV RI 7KRPDV     0F.HDQ DW WKH 3HQQV\OYDQLD                   ZRXOGQRWDOWHU)RVWHUjVGHILQLWLRQRImHOHFWLRQlWRUHTXLUH
UDWLI\LQJFRQYHQWLRQ                                                          6WDWHVWREHJLQWKHLUIHGHUDOHOHFWLRQVRQIHGHUDOHOHFWLRQGD\
                                                                                 ,G$FFRUGLQJO\mVRPHDFWVDVVRFLDWHGZLWKWKHHOHFWLRQPD\
                                                                                 EHFRQGXFWHGEHIRUHWKHIHGHUDOHOHFWLRQGD\ZLWKRXWYLRODWLQJ
                                                                                WKHIHGHUDOHOHFWLRQVWDWXWHVl,G2QHGLVWULFWFRXUWKDVKHOG
      $GGLWLRQDOO\ WKH SODLQWLIIV FLWH +DPLOWRQjV GHVFULSWLRQ RI WKH SRZHU
FRQIHUUHG RQ &RQJUHVV E\ WKH (OHFWLRQV &ODXVH WR HVWDEOLVK mXQLIRUPLW\
                                                                                   $FDQGLGDWHLVQRWmVHOHFWHGIRURIILFHlDWWKHWLPHDYRWHU
LQ WKH WLPH RI HOHFWLRQV IRU WKH )HGHUDO +RXVH RI 5HSUHVHQWDWLYHVl DV D
mSRVLWLYH DGYDQWDJH    WKDW    PD\ EH IRXQG E\ H[SHULHQFH WR EH RI JUHDW
                                                                                   GHSRVLWVDFRPSOHWHGEDOORWLQWKHEDOORWER[UHJDUGOHVV
LPSRUWDQFH WR WKH SXEOLF ZHOIDUH>@l 7+( )       ('(5$/,67 2
                                                       1  DW                RIZKHWKHUWKHEDOORWLVGHSRVLWHGDWDSROOLQJSODFHRQ
$OH[DQGHU +DPLOWRQ &OLQWRQ 5RVVLWHU HG  7KH IXOO SDVVDJH LQ             HOHFWLRQ GD\ LQ WKH PDLOER[ RU DW DQ RIILFLDO VLWH IRU
ZKLFK WKLV TXRWH RFFXUV UHDGV                                                     EDOORWGHSRVLWRQRUEHIRUHWKHGHVLJQDWHGGD\3URYLGLQJ
                                                                                   YDULRXV RSWLRQV IRU WKH WLPH DQG SODFH RI GHSRVLWLQJ D
    %XW WKHUH UHPDLQV WR EH PHQWLRQHG D SRVLWLYH DGYDQWDJH ZKLFK
    ZLOO UHVXOW IURP WKLV GLVSRVLWLRQ DQG ZKLFK FRXOG QRW DV ZHOO
                                                                                   FRPSOHWHG EDOORW GRHV QRW FKDQJH mWKH GD\ IRU WKH
    KDYH EHHQ REWDLQHG IURP DQ\ RWKHU , DOOXGH WR WKH FLUFXPVWDQFH
                                                                                   HOHFWLRQl
    RI XQLIRUPLW\ LQ WKH WLPH RI HOHFWLRQV IRU WKH )HGHUDO +RXVH RI
    5HSUHVHQWDWLYHV ,W LV PRUH WKDQ SRVVLEOH WKDW WKLV XQLIRUPLW\               .HLVOLQJ&LY1R$$VOLSRSDW
    PD\ EH IRXQG E\ H[SHULHQFH WR EH RI JUHDW LPSRUWDQFH WR WKH
    SXEOLF ZHOIDUH ERWK DV VHFXULW\ DJDLQVW WKH SHUSHWXDWLRQ RI WKH                %RWK WKH )LIWK &LUFXLW DQG WKH 1LQWK &LUFXLW UHIXVHG WR
    VDPH VSLULW LQ WKH ERG\ DQG DV D FXUH IRU WKH GLVHDVHV RI IDFWLRQ          DFFHSW DUJXPHQWV WKDW WKH\ WRRN WR UHTXLUH VWULNLQJ GRZQ
    ,I HDFK 6WDWH PD\ FKRRVH LWV RZQ WLPH RI HOHFWLRQ LW LV SRVVLEOH
    WKHUH PD\ EH DW OHDVW DV PDQ\ GLIIHUHQW SHULRGV DV WKHUH DUH
                                                                                 DEVHQWHHYRWLQJVWDWXWHVE\LPSOLFDWLRQ%RPHU)GDW
    PRQWKV LQ WKH \HDU 7KH WLPHV RI HOHFWLRQ LQ WKH VHYHUDO 6WDWHV             .HLVOLQJBBB)GDWBBB:/DW

    DV WKH\ DUH QRZ HVWDEOLVKHG IRU ORFDO SXUSRVHV YDU\ EHWZHHQ                 $GGLWLRQDOO\DOOFRXUWVWKDWKDYHFRQVLGHUHGWKHLVVXHKDYH
    H[WUHPHV DV ZLGH DV 0DUFK DQG 1RYHPEHU 7KH FRQVHTXHQFH RI                   YLHZHGVWDWXWHVWKDWIDFLOLWDWHWKHH[HUFLVHRIWKHIXQGDPHQWDO
    WKLV GLYHUVLW\ ZRXOG EH WKDW WKHUH FRXOG QHYHU KDSSHQ D WRWDO                ULJKW RI YRWLQJ DV FRPSDWLEOH ZLWK WKH IHGHUDO VWDWXWHV
    GLVVROXWLRQ RU UHQRYDWLRQ RI WKH ERG\ DW RQH WLPH ,I DQ LPSURSHU
    VSLULW RI DQ\ NLQG VKRXOG KDSSHQ WR SUHYDLO LQ LW WKDW VSLULW ZRXOG
                                                                                 .HLVOLQJBBB)GDWBBB:/DW
%RPHU
    EH DSW WR LQIXVH LWVHOI LQWR WKH QHZ PHPEHUV DV WKH\ FRPH
                                                                                 )GDW9RWLQJ,QWHJULW\3URMHFW,QFY%RPHU)
    IRUZDUG LQ VXFFHVVLRQ 7KH PDVV ZRXOG EH OLNHO\ WR UHPDLQ                    6XSSG6'7H[.HLVOLQJ&LY1R
    0LOOVDSVHWDOY7KRPSVRQHWDO             1R       1R              0LOOVDSVHWDOY7KRPSVRQHWDO             

                %7KH'LVWULFW&RXUWjV2SLQLRQ                                           ,9)HGHUDO(OHFWLRQV6WDWXWHV
   ,QDQDO\]LQJZKHWKHUWKH7(96FRQIOLFWZLWKWKHIHGHUDO                 ,Q&RQJUHVVHVWDEOLVKHGDQDWLRQDOXQLIRUPHOHFWLRQ
VWDWXWHVHVWDEOLVKLQJWKHILUVW7XHVGD\DIWHUWKHILUVW0RQGD\           GD\IRUFKRRVLQJPHPEHUVRIWKH+RXVHRI5HSUHVHQWDWLYHVE\
LQ1RYHPEHUDVIHGHUDOHOHFWLRQGD\WKHGLVWULFWFRXUWIRFXVHG          HQDFWLQJ86&ZKLFKSURYLGHV
RQWKHVWDWXWRU\PHDQLQJRIWKHZRUGmHOHFWLRQl0LOOVDSV
) 6XSS G DW   'UDZLQJ RQ )RVWHU DV ZHOO DV WKH          7KH7XHVGD\QH[WDIWHUWKHVW0RQGD\LQ1RYHPEHULQ
GHFLVLRQV RI WKH RWKHU IHGHUDO FRXUWV WKDW KDYH FRQVLGHUHG         HYHU\HYHQQXPEHUHG\HDULVHVWDEOLVKHGDVWKHGD\IRU
ZKHWKHUHDUO\YRWLQJVWDWXWHVFRQIOLFWZLWKIHGHUDOODZ9RWLQJ            WKHHOHFWLRQLQHDFKRIWKH6WDWHVDQG7HUULWRULHVRIWKH
,QWHJULW\3URMHFW,QFY%RPHU)6XSSG6'                8QLWHG6WDWHVRI5HSUHVHQWDWLYHVDQG'HOHJDWHVWRWKH
7H[DIIjG)GWK&LUFHUWGHQLHG              &RQJUHVV FRPPHQFLQJ RQ WKH G GD\ RI sDQXDU\ QH[W
869RWLQJ,QWHJULW\3URMHFWY.HLVOLQJ&LY               WKHUHDIWHU
1R$$'2U0DUDIIjGBBB)GBBB
:/WK&LUsXO\WKHGLVWULFWFRXUW              8SRQUDWLILFDWLRQRIWKH6HYHQWHHQWK$PHQGPHQW&RQJUHVV
IDYRUHGDEURDGFRQVWUXFWLRQRIWKHGHILQLWLRQDQGFRQFOXGHG             DGRSWHG D VLPLODU SURYLVLRQ UHVSHFWLQJ WKH HOHFWLRQ RI
WKDWDQmHOHFWLRQLVWKHHQWLUHSURFHVVE\ZKLFKERWKYRWHUV             6HQDWRUV
DQGRIILFLDOVPDNHDILQDOVHOHFWLRQRIDQRIILFHKROGHUlDQG
HQFRPSDVVHVPRUHWKDQPHUHO\FDVWLQJEDOORWV0LOOVDSV                $WWKHUHJXODUHOHFWLRQKHOGLQDQ\6WDWHQH[WSUHFHGLQJ
)6XSSGDW                                                        WKH H[SLUDWLRQ RI WKH WHUP IRU ZKLFK DQ\ 6HQDWRU ZDV
                                                                           HOHFWHG WR UHSUHVHQW VXFK 6WDWH LQ &RQJUHVV DW ZKLFK
   %HFDXVH WKH (DUO\ 9RWLQJ 6WDWXWHV KDYH QR HIIHFW LQ             HOHFWLRQD5HSUHVHQWDWLYHWR&RQJUHVVLVUHJXODUO\E\ODZ
GHFLGLQJ WKH ZLQQHU RI DQ HOHFWLRQ XQWLO WKH SROOV FORVH RQ      WR EH FKRVHQ D 8QLWHG 6WDWHV 6HQDWRU IURP VDLG 6WDWH
IHGHUDOHOHFWLRQGD\WKHFRXUWUHDVRQHGWKDWWKH7(96KDYH                VKDOO EH HOHFWHG E\ WKH SHRSOH WKHUHRI IRU WKH WHUP
QR LQIOXHQFH RQ HOHFWLRQV LQ RWKHU VWDWHV DQG VR GR QRW          FRPPHQFLQJRQWKHGGD\RIsDQXDU\QH[WWKHUHDIWHU
IUXVWUDWHWKHFRQJUHVVLRQDOSXUSRVHLQHVWDEOLVKLQJDXQLIRUP
IHGHUDO HOHFWLRQ GD\  ,G DW   0RUHRYHU WKH 7(96      86&/LNHZLVH&RQJUHVVKDVVHWWKHVDPHGDWHIRUWKH
IDFLOLWDWH UDWKHU WKDQ IUXVWUDWH YRWLQJ WKHUHE\ DGYDQFLQJ         VHOHFWLRQRISUHVLGHQWLDOHOHFWRUVm7KHHOHFWRUVRI3UHVLGHQW
DQRWKHU RI &RQJUHVVjV JRDOV LQ HQDFWLQJ WKH VWDWXWH  ,G       DQG9LFH3UHVLGHQWVKDOOEHDSSRLQWHGLQHDFK6WDWHRQWKH
)LQDOO\ WKH ORQJ KLVWRU\ RI DEVHQWHH YRWLQJ WKURXJKRXW WKH
FRXQWU\ SHUVXDGHG WKH GLVWULFW FRXUW WKDW WKH (DUO\ 9RWLQJ
6WDWXWHV GR QRW FRQIOLFW ZLWK IHGHUDO ODZ  m&RQJUHVV KDV
VXUHO\EHHQDZDUHRIDEVHQWHHYRWLQJDQGKDVWDNHQQRDFWLRQ                  QHDUO\ WKH VDPH DVVLPLODWLQJ FRQVWDQWO\ WR LWVHOI LWV JUDGXDO
                                                                               DFFUHWLRQV 7KHUH LV D FRQWDJLRQ LQ H[DPSOH ZKLFK IHZ PHQ
WRFXUELW7KLVPDNHVLWFOHDUWKDW&RQJUHVVQHYHULQWHQGHG                  KDYH VXIILFLHQW IRUFH RI PLQG WR UHVLVW , DP LQFOLQHG WR WKLQN
WKDW WKH VWDWHV FDQQRW KROG DQ HOHFWLRQ IRU IHGHUDO RIILFLDOV         WKDW WUHEOH WKH GXUDWLRQ LQ RIILFH ZLWK WKH FRQGLWLRQ RI D WRWDO
XQOHVV DOO EDOORWV DUH FDVW RQ WKH 7XHVGD\ DIWHU WKH ILUVW           GLVVROXWLRQ RI WKH ERG\ DW WKH VDPH WLPH PLJKW EH OHVV
0RQGD\LQ1RYHPEHUl,GDW,QFRQFOXVLRQWKHFRXUW                    IRUPLGDEOH WR OLEHUW\ WKDQ RQH WKLUG RI WKDW GXUDWLRQ VXEMHFW WR
VXPPDUL]HG WKDW WKH (DUO\ 9RWLQJ 6WDWXWHV mSUHVHQW>@ QR                 JUDGXDO DQG VXFFHVVLYH DOWHUDWLRQV

REVWDFOHWRDFFRPSOLVKLQJWKHJRDOVRIWKHIHGHUDOHOHFWLRQGD\          ,GDW  ,Q FRQWH[W WKHUHIRUH WKH SDVVDJH FLWHG E\ 3ODLQWLIIV HYLQFHV
VWDWXWHV  7HQQHVVHHjV HIIRUW WR LQFUHDVH YRWHU SDUWLFLSDWLRQ     D JUHDWHU FRQFHUQ IRU HVWDEOLVKLQJ D XQLIRUP GDWH IRU WKH H[SLUDWLRQ RI
                                                                         IHGHUDO WHUPV LQ RIILFH WKDQ WKH SDUWLFXODU GD\ RI WKH ZHHN DQG PRQWK RQ
                                                                         ZKLFK WKH 6WDWHV KROG IHGHUDO HOHFWLRQV
       0LOOVDSVHWDOY7KRPSVRQHWDO               1R         1R              0LOOVDSVHWDOY7KRPSVRQHWDO            

7XHVGD\QH[WDIWHUWKHILUVW0RQGD\LQ1RYHPEHULQHYHU\                         :KHQ WKH IHGHUDO VWDWXWHV VSHDN RI mWKH HOHFWLRQl RI D
IRXUWK\HDUVXFFHHGLQJHYHU\HOHFWLRQRID3UHVLGHQWDQG9LFH                     6HQDWRU RU 5HSUHVHQWDWLYH WKH\ SODLQO\ UHIHU WR WKH
3UHVLGHQWl86&,QFRPELQDWLRQWKHVHSURYLVLRQV                       FRPELQHGDFWLRQVRIYRWHUVDQGRIILFLDOVPHDQWWRPDNH
mPDQGDWH>@ KROGLQJ DOO HOHFWLRQV IRU &RQJUHVV DQG WKH                      DILQDOVHOHFWLRQRIDQRIILFHKROGHU6HH1:HEVWHU
3UHVLGHQF\RQDVLQJOHGD\WKURXJKRXWWKH8QLRQl)RVWHU                        $Q$PHULFDQ'LFWLRQDU\RIWKH(QJOLVK/DQJXDJH
86DW                                                               &*RRGULFK	13RUWHUHGVGHILQLQJmHOHFWLRQl
                                                                                  DVmWKHDFWRIFKRRVLQJDSHUVRQWRILOODQRIILFHl%\
   $OWKRXJKWKHVHVWDWXWHVFOHDUO\HVWDEOLVKDXQLIRUPm)HGHUDO                   HVWDEOLVKLQJDSDUWLFXODUGD\DVmWKHGD\lRQZKLFKWKHVH
(OHFWLRQ 'D\l WKURXJKRXW WKH QDWLRQ WKH RPLVVLRQ RI D                    DFWLRQVPXVWWDNHSODFHWKHVWDWXWHVVLPSO\UHJXODWHWKH
GHILQLWLRQRIWKHWHUPmHOHFWLRQlKDVOHGWKH6XSUHPH&RXUWWR                    WLPHRIWKHHOHFWLRQDPDWWHURQZKLFKWKH&RQVWLWXWLRQ
FRPPHQWRQWKHRSDFLW\RIWKHVWDWXWRU\ODQJXDJHDWLVVXHLQ                      H[SOLFLWO\JLYHV&RQJUHVVWKHILQDOVD\
WKLV FDVH SDUWLFXODUO\ UHJDUGLQJ WKH SUHFLVH DFWV WKDW WKH
VWDWXWHVUHTXLUHD6WDWHWRSHUIRUPRQWKDWGD\)RVWHU                   ,GDWHPSKDVLVDGGHG7KH&RXUWGHFOLQHGWRLGHQWLI\
86DW$FFRUGLQJO\ZHWXUQWRWKHVWDWXWHVjOHJLVODWLYH                  WKHVHFRPELQHGDFWVRIYRWHUVDQGRIILFLDOVRUWRVSHFLI\ZKLFK
KLVWRU\RQZKLFKWKHSODLQWLIIVJUHDWO\UHO\IRUJXLGDQFH6HH               RIWKHPPXVWRFFXURQIHGHUDOHOHFWLRQGD\IRUDVWDWXWHWR
6FKUR\HU Y )UDQNHO  )G   WK &LU                SDVVPXVWHU,GDWm>2@XUGHFLVLRQGRHVQRWWXUQRQDQ\
m:KHQWKHODQJXDJHRIDSURYLVLRQLVDPELJXRXVZHORRNWR                     QLFHW\LQLVRODWLQJSUHFLVHO\ZKDWDFWVD6WDWHPXVWFDXVHWREH
WKHOHJLVODWLYHKLVWRU\RIWKHVWDWXWHLQTXHVWLRQWRDVFHUWDLQLWV             GRQHRQIHGHUDOHOHFWLRQGD\DQGQRWEHIRUHLWLQRUGHUWR
FRQILQHVl FLWLQJ %OXP Y 6WHQVRQ  86                    VDWLVI\WKHVWDWXWHl$FFRUGLQJO\WKH&RXUWFUDIWHGDQDUURZ
                                                                        KROGLQJ  mD FRQWHVWHG VHOHFWLRQ RI FDQGLGDWHV IRU D
                                                                                FRQJUHVVLRQDO RIILFH WKDW LV FRQFOXGHG DV D PDWWHU RI ODZ
  %\HVWDEOLVKLQJDXQLIRUPGDWHIRUKROGLQJIHGHUDOHOHFWLRQV                 EHIRUHWKHIHGHUDOHOHFWLRQGD\ZLWKQRDFWLQODZRULQIDFWWR
&RQJUHVVVRXJKWmWRUHPHG\PRUHWKDQRQHHYLODULVLQJIURP                      WDNHSODFHRQWKHGDWHFKRVHQE\&RQJUHVVFOHDUO\YLRODWHVl
WKH HOHFWLRQ RI PHPEHUV RI FRQJUHVV RFFXUULQJ DW GLIIHUHQW              WKH IHGHUDO VWDWXWHV  ,G  7R XQGHUVFRUH WKH JURXQG OHIW
WLPHVLQWKHGLIIHUHQWVWDWHVl([3DUWH<DUEURXJK86                    XQFRYHUHGE\LWVKROGLQJWKH&RXUWIXUWKHUQRWHGWKDWm>Z@H
    6SHFLILFDOO\ D UHYLHZ RI WKH OHJLVODWLYH            KROGWRGD\RQO\WKDWLIDQHOHFWLRQGRHVWDNHSODFHLWPD\QRW
KLVWRU\RIWKHVHSURYLVLRQVGHPRQVWUDWHVWKDW&RQJUHVVZDQWHG                   EHFRQVXPPDWHGSULRUWRIHGHUDOHOHFWLRQGD\l,GDWQ
WR SUHYHQW 6WDWHV WKDW YRWHG HDUO\ IURP XQGXO\ LQIOXHQFLQJ
WKRVH YRWLQJ ODWHU WR FRPEDW IUDXG E\ PLQLPL]LQJ WKH
RSSRUWXQLW\ IRU YRWHUV WR FDVW EDOORWV LQ PRUH WKDQ RQH                    
HOHFWLRQ DQG WR UHPRYH WKH EXUGHQ RI YRWLQJ LQ PXOWLSOH                     )HZ RWKHU FDVHV KDYH DWWHPSWHG D GHILQLWLRQ RI WKH FRQVWLWXWLRQDO RU
                                                                                VWDWXWRU\ PHDQLQJ RI WKH WHUP mHOHFWLRQl ,Q 1HZEHUU\ Y 8QLWHG 6WDWHV
                                                                                 86    WKH &RXUW UHFRJQL]HG WKDW HQDFWPHQW RI WKH
                                                                                6HYHQWHHQWK $PHQGPHQW GLG QRW DOWHU WKH RULJLQDO FRQVWLWXWLRQDO
     
        86&   FUHDWHV WZR H[FHSWLRQV WR WKLV UXOH  6WDWHV UHTXLULQJ   XQGHUVWDQGLQJ RI DQ mHOHFWLRQl DV WKH mILQDO FKRLFH RI DQ RIILFHU E\ WKH
D PDMRULW\ YRWH IRU HOHFWLRQ RI D 5HSUHVHQWDWLYH PD\ KROG D UXQRII              GXO\ TXDOLILHG HOHFWRUVl $GGLWLRQDOO\ WKH &RXUW KDV UHFRJQL]HG WKDW
EHWZHHQ IHGHUDO HOHFWLRQ GD\ DQG WKH LQDXJXUDWLRQ RI WKH QHZ &RQJUHVV          SULPDU\ HOHFWLRQV IDOO ZLWKLQ WKH VFRSH RI FRQJUHVVLRQDO SRZHU WR UHJXODWH
DQG  D FRQJUHVVLRQDO HOHFWLRQ PD\ RFFXU RQ DQRWKHU GD\ LI D YDFDQF\          WKH mWLPHV SODFHV DQG PDQQHUl RI KROGLQJ IHGHUDO HOHFWLRQV DV D VWHS LQ
RFFXUV LQ WKH RIILFH /RYH Y )RVWHU  )G   WK &LU        WKH SURFHVV RI PDNLQJ D ILQDO VHOHFWLRQ RI D IHGHUDO RIILFHKROGHU 6HH HJ
DIIjG  86   6HH DOVR 3XEOLF &LWL]HQ Y 0LOOHU  ) 6XSS       &ODVVLF  86 DW  )RVWHU KRZHYHU UHSUHVHQWV WKH PRVW VHULRXV
  1' *D DIIjG  )G  WK &LU  %XVEHH Y           HIIRUW WR GDWH WR LQIXVH PHDQLQJ LQWR WKH WHUP mHOHFWLRQl DQG OHDYHV XV
6PLWK  ) 6XSS   ''&  DIIjG  86              ZLWK mWKH FRPELQHG DFWLRQV RI YRWHUV DQG RIILFLDOV PHDQW WR PDNH D ILQDO
                                                                         VHOHFWLRQ RI DQ RIILFHKROGHUl DV D GHILQLWLRQ )RVWHU  86 DW 
    0LOOVDSVHWDOY7KRPSVRQHWDO           1R       1R          0LOOVDSVHWDOY7KRPSVRQHWDO      

 $)RVWHUY/RYHDQGWKH6WDWXWRU\0HDQLQJRIWKH7HUP              HOHFWLRQVLQDVLQJOH\HDU/RYH)GDW%XVEHHY
                        m(OHFWLRQl                                     6PLWK)6XSS''&DIIjG86
                                                                       7KHVHREMHFWLYHVUHIOHFWWKHLPSRUWDQFHYRWLQJ
  7KHSODLQWLIIVDVVHUWWKDWDQmHOHFWLRQlZLWKLQWKHPHDQLQJ          SOD\HG LQ WKH SROLWLFDO GHEDWHV RI WKH 5HFRQVWUXFWLRQ HUD
RIWKHIHGHUDOHOHFWLRQVVWDWXWHVPHDQVmWKHSURFHVVRIYRWLQJ         9RWLQJ,QWHJULW\3URMHFW,QFY.HLVOLQJBBB)GBBBBBB
E\WKHHOHFWRUDWHDWODUJHWRVHOHFWDQRIILFHKROGHUl8QGHU          :/DW
WK&LUsXO\SODFLQJ
WKLV YLHZ WKH 7(96 FRQIOLFW ZLWK IHGHUDO ODZ E\ DOORZLQJ      FRQJUHVVLRQDO GHEDWHV RYHU HQDFWPHQW RI  86&   DQG
YRWLQJWRWDNHSODFHDWWLPHVRWKHUWKDQIHGHUDOHOHFWLRQGD\         DOORZLQJYRWLQJRYHUPXOWLSOHGD\VLQWKHLUKLVWRULFDOFRQWH[W
,Q FRQWUDVW WR WKLV FRQFHSWLRQ RI YRWLQJ DV D SURFHVV WKH
GHIHQGDQWV SRVLW D IXQGDPHQWDO GLVWLQFWLRQ EHWZHHQ WKH             ,QDGYDQFLQJWKHVHUDWLRQDOHVSURSRQHQWVH[SUHVVHGWKHLU
SK\VLFDODFWRIFDVWLQJDEDOORWDQGWKHHOHFWLRQRIDIHGHUDO         XQGHUVWDQGLQJRIZKDWHVWDEOLVKLQJDQDWLRQDOXQLIRUPIHGHUDO
RIILFLDOZKLFKUHTXLUHVPLQLVWHULDODFWLRQVRIVWDWHDQGORFDO        HOHFWLRQGD\PHDQW5HSUHVHQWDWLYH%XWOHURI0DVVDFKXVHWWV
HOHFWLRQ RIILFLDOV WR WUDQVIRUP WKH YRWHUVj SUHIHUHQFH IRU D   ZKRDXWKRUHGWKHODZDUWLFXODWHGKLVDLPLQVSRQVRULQJ
FDQGLGDWH LQWR D ILQDO DFW RI VHOHFWLRQ  $FFRUGLQJO\ WKH    WKHOHJLVODWLRQ
GHIHQGDQWVVXEPLWWKDWEHFDXVHWKH7(96IRUHVWDOOWDOO\LQJ
UHVXOWV XQWLO WKH ILUVW 7XHVGD\ DIWHU WKH ILUVW 0RQGD\ LQ       7KHREMHFWRIWKLVDPHQGPHQW LVWRSURYLGHDXQLIRUP
1RYHPEHUWKH\GRQRWFRQIOLFWZLWKWKHHVWDEOLVKPHQWRID               WLPHRIHOHFWLQJ5HSUHVHQWDWLYHVLQ&RQJUHVV%XWRQ
IHGHUDOHOHFWLRQGD\                                                    DFFRXQW RI WKH IDFLOLW\ IRU FRORQL]DWLRQ DQG UHSHDWLQJ
                                                                         DPRQJ WKH ODUJH FHQWUDO 6WDWHV 1HZ <RUN KROGLQJ LWV
   :KLOH DFNQRZOHGJLQJ WKH GLIILFXOW\ RI GHILQLQJ ZLWK             HOHFWLRQ LQ 1RYHPEHU DQG 2KLR 3HQQV\OYDQLD DQG
SUHFLVLRQWKHWHUPmHOHFWLRQlDVXVHGLQWKHIHGHUDOHOHFWLRQV           ,QGLDQDKROGLQJWKHLUHOHFWLRQVLQ2FWREHUWKHSULYLOHJH
VWDWXWHVWKH6XSUHPH&RXUWUHFHQWO\SURYLGHGJXLGDQFHRQWKH            LVDOORZHGWKHERUGHU6WDWHVLIDQ\PDQLVVRGLVSRVHGRI
TXHVWLRQLQ)RVWHUY/RYH867KHUHWKH           WKURZLQJYRWHUVDFURVVIURPRQHLQWRWKHRWKHU,WKLQNLW
FRXUW UHYLHZHG D FKDOOHQJH WR /RXLVLDQDjV RSHQ SULPDU\            ZLOOEHIDLUIRUHYHU\ERG\WKDWRQWKHGD\ZKHQRQHYRWHV
V\VWHPIRUFRQGXFWLQJFRQJUHVVLRQDOHOHFWLRQVLQZKLFKDOO              DOOVKRXOGYRWHDQGWKDWWKHZKROHTXHVWLRQVKRXOGEH
FDQGLGDWHVUHJDUGOHVVRISDUW\DSSHDUHGRQWKHVDPHEDOORWLQ            GHFLGHGWKHQ
2FWREHU RI IHGHUDO HOHFWLRQ \HDUV  $Q\ FDQGLGDWH ZKR
UHFHLYHGDPDMRULW\ZRQHOHFWLRQZLWKRXWIXUWKHUDFWLRQRQ             &21* */2%( G &RQJ G 6HVV   HPSKDVLV
IHGHUDOHOHFWLRQGD\EXWLIQRFDQGLGDWHUHFHLYHGDPDMRULW\          DGGHG5HSUHVHQWDWLYH%XWOHUIXUWKHUHODERUDWHG
WKHWRSWZRFDQGLGDWHVFRPSHWHGLQDUXQRIIHOHFWLRQKHOGRQ
WKH ILUVW 7XHVGD\ DIWHU WKH ILUVW 0RQGD\ LQ 1RYHPEHU            8QOHVV ZH GR IL[ VRPH WLPH DW ZKLFK DV D UXOH
%HFDXVHWKH/RXLVLDQDVWDWXWHFRXQWHQDQFHGILQDOVHOHFWLRQRI            5HSUHVHQWDWLYHVVKDOOEHHOHFWHGLWZLOOEHLQWKHSRZHU
PHPEHUVRI&RQJUHVVZLWKQRDFWLRQDWDOORQIHGHUDOHOHFWLRQ            RI HDFK6WDWHWRIL[XSRQDGLIIHUHQWGD\DQGZH PD\
GD\DVLQIDFWKDSSHQHGLQRYHUHLJKW\SHUFHQWRIHOHFWLRQV             KDYHDFDQYDVVJRLQJRQDOORYHUWKH8QLRQDWGLIIHUHQW
KHOGXQGHUWKLVRSHQSULPDU\V\VWHPWKH&RXUWUXOHGWKDWLW             WLPHV,WJLYHVVRPHVWDWHVXQGXHDGYDQWDJH,WJLYHV
FRQIOLFWHGZLWKIHGHUDOODZ,GDW                              VRPHSDUWLHVXQGXHDGYDQWDJH

  ,QUHDFKLQJWKLVFRQFOXVLRQWKH&RXUWVXUYH\HGWKHIHGHUDO          &21* */2%(G&RQJG6HVV
HOHFWLRQVVWDWXWHVDQGWKHLUOHJLVODWLYHKLVWRU\DQGVXSSOLHGWKH
IROORZLQJGHILQLWLRQRIDQmHOHFWLRQl                                   ,QFRQJUHVVLRQDOGHEDWHRYHUHVWDEOLVKLQJDVLQJOHQDWLRQDO
                                                                       HOHFWLRQGD\WKH6HQDWHGHIHDWHGDQDPHQGPHQWWKDWZRXOG
       0LOOVDSVHWDOY7KRPSVRQHWDO            1R        1R            0LOOVDSVHWDOY7KRPSVRQHWDO          

KDYHSHUPLWWHGYRWLQJIRU5HSUHVHQWDWLYHVRYHUPXOWLSOHGD\V                5HSUHVHQWDWLYH*LGGLQJVRI7H[DVVXPPDUL]HGWKHVLWXDWLRQ
LQ6WDWHVWKDWFRQGXFWHGHOHFWLRQVIRUWKHLURZQRIILFHUVRQ                LQKLVKRPH6WDWH
PRUHWKDQRQHGD\&21* */2%(G&RQJG6HVV
   $UJXLQJ DJDLQVW WKH DPHQGPHQW 6HQDWRU                     0U6SHDNHUWKHSDVVDJHRIWKLVELOOVRIDUDVWKH6WDWHRI
7UXPEXOORI1HZsHUVH\H[SODLQHG                                             7H[DVLVFRQFHUQHGLVDQDEVROXWHQHFHVVLW\%\WKHODZ
                                                                              RIWKH6WDWHDVQRZLQIRUFHEXWRQHSODFHRIYRWLQJLV
  , WKLQN WKH VDPH GD\ VKRXOG EH IL[HG WKURXJKRXW WKH                DOORZHGLQHDFKFRXQW\7KHFRXQWLHVDUHODUJH6RPH
  FRXQWU\IRUWKHHOHFWLRQRIPHPEHUVRI&RQJUHVV                     YRWHUV KDYH WR WUDYHO LQ VRPH RI WKH IURQWLHU FRXQWLHV
  >,@Q DV PXFK DV LQ VRPH RI WKH 6WDWHV WKH\ YRWH IRU              IURP WKLUW\ WR VHYHQW\ILYH PLOHV WR JHW WR WKH YRWLQJ
  VHYHUDO GD\V DQG KDYH EXW RQH SODFH IRU YRWLQJ LQ D               SODFH7KH/HJLVODWXUHRIRXU6WDWHFDQQRWFRQYHQHXQWLO
  FRXQW\LWZDVVXJJHVWHGWKDWZHRXJKWWRH[WHQGWKHWLPH                   DIWHUWKHQH[WHOHFWLRQ7KHUHLVQROHJLVODWLYHERG\DW
  RI YRWLQJ IRU PHPEHUV RI &RQJUHVV DV ORQJ DV LW LV                SUHVHQWLQH[LVWHQFHWKHUH$QHOHFWLRQKHOGLQRQHGD\LQ
  H[WHQGHG IRU YRWLQJ IRU RWKHU RIILFHUV  , GR QRW NQRZ            WKH6WDWHRI7H[DVXQGHUWKHSUHVHQW6WDWHODZZRXOGEH
  QRZKRZHYHUWKDWWKHUHZLOOEHDQ\SDUWLFXODUQHFHVVLW\                   VLPSO\DIDUFH,WLVDPDWWHURILPSRVVLELOLW\WRSROODW
  IRUWKLVDPHQGPHQW7KHUHLVQRSURYLVLRQFRQILQLQJ                 RQHSODFHWKHHQWLUHYRWHRIDFRXQW\HYHQLIWKHSHRSOH
  WKHHOHFWLRQRIPHPEHUVRI&RQJUHVVWRDVLQJOHGD\XQWLO                   FRXOG EH JDWKHUHG DW WKH SODFH LQ RQH GD\      7KH
   DQG WKHUH ZLOO EH WLPH HQRXJK IRU WKH VWDWHV WR             SDVVDJHRIWKLVELOOLVDQDEVROXWHQHFHVVLW\LQRUGHUWR
  FRQIRUPWKHLUOHJLVODWLRQWRWKHODZZKLFKZLOOWDNHHIIHFW                 VHFXUHDIXOODQGIDLUHOHFWLRQLQ7H[DV1ROHJLVODWLYH
  LQ   , DP QRW VXUH QRZ WKDW WKLV DPHQGPHQW LV               FKDQJHFDQEHPDGHLQWKH6WDWHODZEHWZHHQQRZDQG
  QHFHVVDU\DWDOO,UDWKHUWKLQNWKDWLWLVQRW                           >IHGHUDOHOHFWLRQGD\@IURPWKHIDFWQR/HJLVODWXUHFDQ
                                                                              FRQYHQH7KHWLPHDOORZHGWKH/HJLVODWXUHKDVH[SLUHG
&21* */2%( G &RQJ G 6HVV   HPSKDVLV                  7KHUH LV QR OHJLVODWLYH ERG\ LQ 7H[DV DQG QRQH FDQ
DGGHG                                                                       FRQYHQHXQWLO1RYHPEHUQH[WDQGE\WKH6WDWHODZWKDW
                                                                              HOHFWLRQVKDOORFFXUDWWKHVDPHWLPHDVWKHHOHFWLRQIRU
  ,Q&RQJUHVVDPHQGHG86&WRDOORZ6WDWHVWR                    SUHVLGHQWLDOHOHFWRUV
FRQGXFWEDOORWLQJIRUSUHVLGHQWLDOHOHFWRUVRYHUPRUHWKDQRQH
GD\LQWKDW\HDUjVSUHVLGHQWLDOHOHFWLRQ$FWRI0D\             &21* */2%(G&RQJG6HVV
FK6WDW&RQJUHVVHQDFWHGWKLVSURYLVLRQDVD
RQHWLPH H[FHSWLRQ WR WKH VWDWXWRU\ DQG FRQVWLWXWLRQDO                              9&RQIOLFW3UHHPSWLRQ$QDO\VLV
UHTXLUHPHQW IRU D XQLIRUP GD\ IRU VHOHFWLRQ RI HOHFWRUV WR
DGGUHVV WKH FLUFXPVWDQFHV RI 5HFRQVWUXFWLRQHUD 7H[DV                   $OWKRXJKWKHSODLQWLIIVFKDOOHQJHWKH(DUO\9RWLQJ6WDWXWHV
&21* */2%( G &RQJ G 6HVV                        RQWKHEDVLVRIFRQIOLFWSUHHPSWLRQ7HQQHVVHHGHIHQGVWKH
                                                                            7(96DJDLQVWSUHHPSWLRQRQDOOSRVVLEOHJURXQGV%HFDXVH
                                                                            WKHSODLQWLIIVRQO\PDNHDFRQIOLFWSUHHPSWLRQFKDOOHQJHZH
                                                                            OLPLWRXUGLVFXVVLRQWRWKHPHULWVRIWKHSODLQWLIIVjFODLPRQ
     
     7KRXJK QRW FRGLILHG LQ WKH 8QLWHG 6WDWHV &RGH WKLV $FW UHPDLQV SDUW   WKLV JURXQG  :KHWKHU WKH (DUO\ 9RWLQJ 6WDWXWHV mDFWXDOO\
RI WKH 6WDWXWHV DW /DUJH    :KHQ WKH WZR FRQIOLFW WKH ODWWHU SUHYDLOV    FRQIOLFWlZLWKIHGHUDOODZWXUQVRQWKHDQVZHUWRWKHTXHVWLRQ
8QLWHG   6WDWHV Y :HOGRQ
                         86   Q  m>7@KH &RGH FDQQRW      m:KDWLVDQHOHFWLRQ"lnSDUWLFXODUO\DVLWUHODWHVWRWKHXVHRI
SUHYDLO RYHU WKH 6WDWXWHV DW /DUJH ZKHQ WKH WZR DUH LQFRQVLVWHQWl
TXRWLQJ 6WHSKDQ Y 8QLWHG 6WDWHV  86    :DUQHU Y
                                                                            WKHWHUPLQWKHIHGHUDOHOHFWLRQVVWDWXWHV
*ROWUD  86    FLWLQJ DQ HDUOLHU YHUVLRQ RI  86&
 D