You are on page 1of 23

Case 1:15-cv-00293-LTS-JCF Document 200-10 Filed 06/29/17 Page 1 of 23

([KLELW-
Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1 of222
of 23

81,7('67$7(6',675,&7&2857
)257+(',675,&72)&2/80%,$
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
      
8QLWHG6WDWHVRI$PHULFDHWDO  
H[UHO/$85(1&(6&+1(,'(5 

  3ODLQWLIIV   
      
 Y      &LYLO$FWLRQ1R 50& 
       
-3025*$1&+$6(%$1.1$     
      
  'HIHQGDQW   
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 

23,1,21

3XUVXDQWWRWKH)HGHUDO)DOVH&ODLPV$FWDQGVLPLODU6WDWHODZV5HODWRU/DXUHQFH

6FKQHLGHUDVVHUWVWKDW-30RUJDQ&KDVH%DQN1$ &KDVH VXEPLWWHGIDOVHFODLPVUHODWLQJWR

WKH1DWLRQDO0RUWJDJH6HWWOHPHQWDQGIDOVHFODLPVUHODWLQJWRWKH+RPH$IIRUGDEOH0RGLILFDWLRQ

3URJUDP +$03 WRGHFUHDVHLWVOLDELOLW\WRWKH)HGHUDO*RYHUQPHQW+RZHYHUWKH1DWLRQDO

0RUWJDJH6HWWOHPHQWFODLPVDUHEDUUHGEHFDXVH0U6FKQHLGHUIDLOHGWRHQJDJHLQWKHDOWHUQDWLYH

GLVSXWHUHVROXWLRQSURFHVVPDQGDWHGE\WKH6HWWOHPHQWRQZKLFKWKHFODLPVDUHEDVHG0U

6FKQHLGHUDOVRIDLOVWRVWDWHDFODLPWKDW'HIHQGDQWIDOVHO\FHUWLILHG+$03FRPSOLDQFHEHFDXVH

KHGRHVQRWDOOHJHZLWKIDFWXDODOOHJDWLRQVLQVXSSRUWWKDWWKHFHUWLILFDWLRQVZHUHPDWHULDOO\

IDOVH7KH&RPSODLQWZLOOEHGLVPLVVHG

,)$&76

$ %DFNJURXQG

)ROORZLQJWKHEXUVWRIWKHKRXVLQJEXEEOHLQWKH)HGHUDO*RYHUQPHQWEHJDQ

WRLQVWLWXWHPHDVXUHVGHVLJQHGWRVWDELOL]HWKHKRXVLQJDQGFUHGLWPDUNHWV7KRVHPHDVXUHV

LQFOXGHGWKH7URXEOHG$VVHW5HOLHI3URJUDP 7$53 DQGWKH0DNLQJ+RPH$IIRUGDEOH3URJUDP

ERWKSURJUDPVLQWKH'HSDUWPHQWRIWKH7UHDVXU\6HH86'HSDUWPHQWRIWKH7UHDVXU\7$53


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 2 of322
of 23

3URJUDPV 1RY KWWSVZZZWUHDVXU\JRYLQLWLDWLYHVILQDQFLDOVWDELOLW\7$53

3URJUDPV3DJHVGHIDXOWDVS[86'HSDUWPHQWRIWKH7UHDVXU\0DNLQJ+RPH$IIRUGDEOH -XO\

 KWWSVZZZWUHDVXU\JRYLQLWLDWLYHVILQDQFLDOVWDELOLW\7$533URJUDPVKRXVLQJ

PKD3DJHVKDPSDVS[7KH0DNLQJ+RPH$IIRUGDEOH3URJUDPLQFOXGHGWKH+RPH$IIRUGDEOH

0RGLILFDWLRQ3URJUDP +$03 ZKLFKXVHGIXQGVIURP7$53DVLQFHQWLYHVIRUEDQNVWRPRGLI\

ILUVWOLHQPRUWJDJHVVRWKDWKRPHRZQHUVFRXOGORZHUWKHLUPRUWJDJHSD\PHQWV+$03

FRQWLQXHVWRWKLVGD\LWVJRDOLVWRHQFRXUDJHPRGLILFDWLRQRIORDQVWKDWDUHDWULVNRIGHIDXOWDQG

PDNHWKHPPRUHDIIRUGDEOH

,Q0DUFKWKH)HGHUDO*RYHUQPHQW6WDWHVDQGWKH'LVWULFWRI&ROXPELD

ILOHGFRPSODLQWLQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH'LVWULFWRI&ROXPELDDJDLQVW

³QXPHURXVEDQNVDQGORDQVHUYLFLQJFRPSDQLHVLQFOXGLQJ&KDVHIRUPLVFRQGXFWUHODWHGWRWKHLU

RULJLQDWLRQDQGVHUYLFLQJRIVLQJOHIDPLO\UHVLGHQWLDOPRUWJDJHV´6HFRQG$P&RPSO>'NW

@ 6$& ˆ2WKHUGHIHQGDQWEDQNVLQFOXGHG%DQNRI$PHULFD&RUSRUDWLRQ&RXQWU\ZLGH

%DQN)6%&LWLEDQN1$DQG:HOOV)DUJR%DQN1$3ULRUWRILOLQJWKH1DWLRQDO0RUWJDJH

&RPSODLQWLWVSDUWLHVKDGQHJRWLDWHGDQDWLRQDOVHWWOHPHQWRILWVDOOHJDWLRQVLHWKH1DWLRQDO

0RUWJDJH6HWWOHPHQW2Q$SULOWKLV&RXUWHQWHUHGFRQVHQWMXGJPHQWVDSSURYLQJWKH

1DWLRQDO0RUWJDJH6HWWOHPHQW6HHHJ&RQVHQW-XGJPHQWV8QLWHG6WDWHVY%DQNRI$PHULFD

&RUS1R 50& >'NWV@

7KH1DWLRQDO0RUWJDJH6HWWOHPHQWZDVLQWHQGHG³WRSURYLGHLPPHGLDWHUHOLHIWR

HQDEOHVWUXJJOLQJKRPHRZQHUVWRDYRLGIRUHFORVXUHWREULQJEDGO\QHHGHGUHIRUPWRWKH

PRUWJDJHVHUYLFLQJLQGXVWU\WRHQVXUHWKDWIRUHFORVXUHVDUHODZIXOO\FRQGXFWHGDQGWRSHQDOL]H



7KH0DUFKFRPSODLQWZLOOEHUHIHUHQFHGKHUHLQDVWKH³1DWLRQDO0RUWJDJH&RPSODLQW´
DQGWKHUHVXOWLQJVHWWOHPHQWDVWKH³1DWLRQDO0RUWJDJH6HWWOHPHQW´


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 3 of422
of 23

WKHEDQNVIRUURERVLJQLQJPLVFRQGXFW´6$&ˆ7KH&RXUWDSSRLQWHG-RVHSK$6PLWKWR

VHUYHDV0RQLWRURIWKH6HWWOHPHQWDQGWKHUHE\WRRYHUVHHLPSOHPHQWDWLRQRIWKHUHIRUPVRI

PRUWJDJHORDQVHUYLFLQJDQGHYDOXDWHFRPSOLDQFHE\WKHVLJQDWRU\EDQNV([KLELW$WRWKH

1DWLRQDO0RUWJDJH6HWWOHPHQWZDVDOLVWRI6HUYLFLQJ6WDQGDUGVZKLFKLQFOXGHGWKHIROORZLQJ

NLQGVRIVWDQGDUGV

 6WDQGDUGV IRU GRFXPHQWV XVHG LQ IRUHFORVXUH DQG EDQNUXSWF\


SURFHHGLQJV

 6WDQGDUGV IRU TXDOLILFDWLRQV WUDLQLQJ DQG VXSHUYLVLRQ RI


HPSOR\HHV

 5HTXLUHPHQWV IRU DFFXUDF\ DQG YHULILFDWLRQ RI ERUURZHU¶V


DFFRXQWLQIRUPDWLRQ

 6WDQGDUGV WR HQVXUH GRFXPHQWDWLRQ RI QRWH KROGHU VWDWXV DQG
FKDLQRIDVVLJQPHQW

 /RVVPLWLJDWLRQUHTXLUHPHQWV

 5HTXLUHPHQWVIRUDQHDVLO\DFFHVVLEOHDQGUHOLDEOHVLQJOHSRLQW
RIFRQWDFWIRUSRWHQWLDOO\HOLJLEOHILUVWOLHQPRUWJDJHERUURZHUV
DQG

 5HVWULFWLRQVRQVHUYLFLQJIHHV

6HH&RQVHQW-XGJPHQW([$8QLWHG6WDWHVY%DQNRI$PHULFD&RUSHWDO1R 50& 

>'NW@VHHDOVR6$&ˆ7KH6HUYLFLQJ6WDQGDUGVZHUHLPSOHPHQWHGWKURXJKDZRUNSODQ

IRUHDFKVLJQDWRU\EDQN&RPSOLDQFHZDVDVFHUWDLQHGE\WKH0RQLWRUXVLQJ³0HWULFVWRWHVW

WKHDSSOLFDWLRQDQGSHUIRUPDQFHRIWKHUHTXLUHG6HUYLFLQJ6WDQGDUGV´6$&ˆ³>7@KH

0RQLWRUWKURXJKWKHFKDLQRISURFHVVUHOLHGRQWKH,5*¶V>,QWHUQDO5HYLHZ*URXS¶V@WHVWLQJRI

WKHPHWULFVSXUVXDQWWRWKHWHUPVRIWKH&RQVHQW-XGJPHQWWRGHWHUPLQHWKH'HIHQGDQW¶V

FRPSOLDQFHZLWKWKH&RQVHQW-XGJPHQW´,Gˆ$WWKHHQGRIHDFKTXDUWHU0RQLWRU6PLWK

VXEPLWWHGDUHSRUWWRWKH&RXUWLQGLFDWLQJ³ L WKH0HWULFVIRUWKDW4XDUWHU LL 6HUYLFHU¶V

SURJUHVVWRZDUGPHHWLQJLWVSD\PHQWREOLJDWLRQVXQGHUWK>H@&RQVHQW-XGJPHQW>DQG@ LLL 


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 4 of522
of 23

JHQHUDOVWDWLVWLFDOGDWDRQ6HUYLFHU¶VRYHUDOOVHUYLFLQJSHUIRUPDQFH´&RQVHQW-XGJPHQW([(

8QLWHG6WDWHVY%DQNRI$PHULFD&RUSHWDO1R 50& >'NW@DW(

,QDGGLWLRQWRWKH6HUYLFLQJ6WDQGDUGVWKH1DWLRQDO0RUWJDJH6HWWOHPHQWUHTXLUHG

HDFK'HIHQGDQWWRSURYLGHDVSHFLILFGROODUDPRXQWLQFRQVXPHUUHOLHIZKLFKWRWDOHGDERXW

ELOOLRQRYHUDOO&KDVHZDVUHTXLUHG³WRSURYLGHRYHUELOOLRQLQFRQVXPHUUHOLHILQWKHIRUPRI

ORDQIRUJLYHQHVVDQGUHILQDQFLQJ´6$&ˆ6SHFLILFDOO\&KDVHZDVUHTXLUHGWRSURYLGH

³RIUHOLHIWRFRQVXPHUVZKRPH>W@WKHHOLJLELOLW\UHTXLUHPHQWVLQSDUDJUDSKV

RI([KLELW'´WRWKH1DWLRQDO0RUWJDJH6HWWOHPHQWDQG³RIUHILQDQFLQJUHOLHIWR

FRQVXPHUVZKRPH>W@WKHUHTXLUHPHQWVRISDUDJUDSKRI([KLELW'´,Gˆ&KDVHUHFHLYHG

FUHGLWVWRZDUGLWVFRQVXPHUUHOLHIDPRXQWZKHQLW

x $OORZHG ERUURZHUV WR PDNH )LUVW /LHQ DQG 6HFRQG /LHQ


0RGLILFDWLRQV

x $OORZHG ERUURZHUV WR PDNH 6HFRQG /LHQ 3RUWIROLR


0RGLILFDWLRQV

x 3URYLGHGERUURZHUV(QKDQFHG7UDQVLWLRQDO)XQGV

x )DFLOLWDWHG6KRUW6DOHVIRUERUURZHUV

x 3URYLGHGERUURZHUV'HILFLHQF\:DLYHUV

x 3URYLGHG)RUEHDUDQFHIRU8QHPSOR\HG%RUURZHUVDQG

x $VVLVWHGLQ$QWL%OLJKWHIIRUWV



7KHSDUWLFLSDWLQJVWDWHDQGIHGHUDODJHQFLHVDOVR³GHVLJQDWH>G@DQ$GPLQLVWUDWLRQDQG
0RQLWRULQJ&RPPLWWHH´ZKLFK³VHUYH>G@DVWKHUHSUHVHQWDWLYHRIWKHSDUWLFLSDWLQJVWDWHDQG
IHGHUDODJHQFLHVLQWKHDGPLQLVWUDWLRQRIDOODVSHFWVRI>WKH@&RQVHQW-XGJPHQWDQGWKH
PRQLWRULQJRIFRPSOLDQFH´&RQVHQW-XGJPHQW8QLWHG6WDWHVY%DQNRI$PHULFD&RUSHWDO
1R 50& >'NW@ˆ7KHUHVSRQVLELOLWLHVDQGDXWKRULWLHVRI0RQLWRU6PLWKDQGWKH
0RQLWRULQJ&RPPLWWHHZHUHGHWDLOHGLQ([KLELW(WRWKH&RQVHQW-XGJPHQW6HH&RQVHQW
-XGJPHQW([(


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 5 of622
of 23

6HH&RQVHQW-XGJPHQW(['8QLWHG6WDWHVY%DQNRI$PHULFD&RUSHWDO1R 50& 

>'NW@DW''

% 5HOHYDQW7HUPVRIWKH1DWLRQDO0RUWJDJH6HWWOHPHQW

7KH1DWLRQDO0RUWJDJH6HWWOHPHQWDOVRSURYLGHGDSURFHVVIRUQRWLFHDQGFXUHLQ

WKHHYHQWDEDQNIDLOHGWRVDWLVI\D6HUYLFLQJ6WDQGDUG,I0RQLWRU6PLWKGHWHUPLQHGWKDWDEDQN

KDGH[FHHGHGWKH³QHJRWLDWHGWKUHVKROGHUURUUDWHDVVLJQHGWR>DQ\@0HWULF´KHZRXOGQRWLI\WKDW

EDQNDQGWULJJHUDFRUUHFWLYHSURFHGXUH8QLWHG6WDWHVY%DQNRI$PHULFD)6XSSG

 ''& VHHDOVR&RQVHQW-XGJPHQW([(DW((³7KH>EDQN@KD>G@DULJKWWR

FXUHD3RWHQWLDO9LRODWLRQZLWKLQDVHWFXUHSHULRG´,G,IWKHEDQNFXUHGWKHHUURUVWKHQ³QR

3DUW\WRWKH&RQVHQW-XGJPHQWFDQVXHRQWKH3RWHQWLDO9LRODWLRQ´,G

3DUWLHVDQGWKH0RQLWRULQJ&RPPLWWHHZHUHRQO\SHUPLWWHGWR³VXHWRHQIRUFH D 

XQFXUHG3RWHQWLDO9LRODWLRQVRI6HUYLFLQJ6WDQGDUGVFRYHUHGE\D0HWULFDQG E 6HUYLFLQJ

6WDQGDUGVWKDWDUHRXWVLGHWKH0HWULFWHVWLQJ3RWHQWLDO9LRODWLRQSURFHVV´,GDW3ULRUWR

FRPPHQFLQJDQ\HQIRUFHPHQWDFWLRQDULVLQJRXWRIWKH&RQVHQW-XGJPHQWDSDUW\ZDVUHTXLUHGWR

³SURYLGHQRWLFHWRWKH0RQLWRULQJ&RPPLWWHHRILWVLQWHQWWREULQJDQDFWLRQ´DQGDOORZWKH

0RQLWRULQJ&RPPLWWHHGD\VWRFRQVLGHUEULQJLQJWKHDFWLRQLWVHOI&RQVHQW-XGJPHQW([(

DW(,IWKH0RQLWRULQJ&RPPLWWHHGHFOLQHGWREULQJDQHQIRUFHPHQWDFWLRQWKHSDUW\ZDV

REOLJDWHGWRZDLWDQDGGLWLRQDOGD\VEHIRUHILOLQJVXLW6HHLG

& +RPH$IIRUGDEOH0RGLILFDWLRQ3URJUDP +$03 

+$03LVDIHGHUDOO\IXQGHGIRUHFORVXUHUHOLHISURJUDPRSHUDWHGE\WKH

'HSDUWPHQWRIWKH7UHDVXU\ZKLFKSURYLGHVLQFHQWLYHSD\PHQWVWRPRUWJDJHVHUYLFHUVLQ



$PRUWJDJHVHUYLFHUUHFHLYHVPRUWJDJHSD\PHQWVIURPKRPHRZQHUVPDLQWDLQVDOOUHFRUGVDQG
HQIRUFHVWKHREOLJDWLRQVWRSD\WKHQIRUHFORVHVRQWKHKRPHLIQHHGEH0RUWJDJHVHUYLFHUVFDQ


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 6 of722
of 23

H[FKDQJHIRUPRGLI\LQJHOLJLEOHPRUWJDJHORDQV(OLJLELOLW\IRUPRGLILFDWLRQLVGHWHUPLQHG

WKURXJKDQDSSOLFDWLRQSURFHVVVXEMHFWWRVRPHH[FHSWLRQV0RUWJDJHVHUYLFHUVSDUWLFLSDWHLQ

+$03WKURXJKD6HUYLFHU3DUWLFLSDWLRQ$JUHHPHQWZLWKWKH)HGHUDO1DWLRQDO0RUWJDJH

$VVRFLDWLRQ )DQQLH0DH 7UHDVXU\¶VGHVLJQDWHGILQDQFLDODJHQWIRU+$037UHDVXU\DOVR

SURYLGHGJXLGDQFHUHJDUGLQJ+$03WKURXJKWKH0DNLQJ+RPH$IIRUGDEOH+DQGERRN 0+$

+DQGERRN ZKLFKUHTXLUHV6HUYLFHUVWRVROLFLWHOLJLEOHERUURZHUVIRU+$03ORDQPRGLILFDWLRQ

6HH0+$+DQGERRNDW YHUVLRQ0D\ DYDLODEOHDW

KWWSVZZZKPSDGPLQFRPSRUWDOSURJUDPVGRFVKDPSBVHUYLFHUPKDKDQGERRN

BSGI7KH0+$+DQGERRNSURYLGHVH[FHSWLRQVWRWKHVROLFLWDWLRQUHTXLUHPHQWLQFOXGLQJ

ZKHQ³WKHVHUYLFHUKDVUHOHDVHGWKHERUURZHUIURPOLDELOLW\IRUWKHGHEWDQGSURYLGHGDFRS\RI

VXFKUHOHDVHWRWKHERUURZHU´LGDWRULQDFWLYHEDQNUXSWF\FDVHV6HHLGDW

)UHGGLH0DFPRQLWRUVFRPSOLDQFHZLWK+$03WKURXJKDQQXDOFRPSOLDQFH

FHUWLILFDWHVIURPWKH6HUYLFHUV,QWKHFRPSOLDQFHFHUWLILFDWHVHDFK6HUYLFHUPXVWUHSRUWDQ\

LQVWDQFHVRIQRQFRPSOLDQFHWKDWKDG³DPDWHULDOHIIHFWRQLWVDELOLW\WRFRPSO\ZLWKSURJUDP

UHTXLUHPHQWV´,GDW

' &KDVH%DQN¶V3HUIRUPDQFHXQGHUWKH1DWLRQDO0RUWJDJH6HWWOHPHQWDQG
+$03

&KDVHJHQHUDOO\PDLQWDLQVUHFRUGVRIWKHPRUWJDJHORDQVLWVHUYLFHVWKURXJKDQ

HOHFWURQLF³6\VWHPRI5HFRUGV´+RZHYHUORDQVFRQVLGHUHGXQFROOHFWDEOH XVXDOO\EHFDXVHWKH

YDOXHRIWKHSURSHUW\ZDVPXFKOHVVWKDQWKHRXWVWDQGLQJORDQ DUHSXWLQWKH³5HFRYHU\2QH

SRSXODWLRQ´ 5&9 DQGWKRVHUHFRUGVDUHPDLQWDLQHGRXWVLGHWKHSULPDU\6\VWHPRI5HFRUGV

5&9ORDQVDUHWKRVHWKDW&KDVHGHHPV³YDOXHOHVVEDVHGRQ*HQHUDO$FFHSWDEOH$FFRXQWLQJ


LQFOXGHWKHRULJLQDWLQJEDQNZKLFKORDQHGWKHPRQH\DQGKHOGWKHOLHQRUWKHSDSHUVFRXOGEH
VROGWRRWKHUEDQNVRUVHUYLFHUV


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 7 of822
of 23

3ULQFLSOHV *$$3 DQGRWKHULQWHUQDOPHWKRGVRIERRNNHHSLQJ´6$&ˆ:KHQ&KDVH

GHWHUPLQHVWKDWDORDQLVYDOXHOHVVLW³FKDUJHVRII´WKHORDQLHHQWHUVLWDVDORVVRQWKHEDQN¶V

ERRNVDQGWKHQWUDQVIHUVWKHORDQIURPLWV6\VWHPRI5HFRUGVWR5&9&KDVHGRHVQRW

IRUHFORVHRQ5&9ORDQVEHFDXVHLWZRXOGPDNHQRILQDQFLDOVHQVHWRIRUHFORVHRQDYDOXHOHVV

ORDQWKHFRVWWR&KDVHRIDWWHPSWLQJIRUHFORVXUHFRXOGQHYHUEHUHJDLQHGVLQFHE\GHILQLWLRQWKH

UHVLGHQFHLVZRUWKOHVVWKDQWKHORDQ%RWKILUVWDQGVHFRQGOLHQPRUWJDJHVPD\EHWUDQVIHUUHGWR

5&9DVZHOODV³PRUWJDJHVWKDWDUHVXEMHFWWREDQNUXSWFLHVDQGSRVWIRUHFORVXUHGHILFLHQFLHV´

,Gˆ2QFHDORDQLVWUDQVIHUUHGWR5&9LWVGRFXPHQWDWLRQRIWHQEHFRPHV³FRUUXSWHG

LJQRUHGRUDOORZHGWRIDOOLQWRGLVDUUD\´EHFDXVHLWKDVQREXVLQHVVYDOXHWR&KDVH,G

0RQLWRULQJIRUFRPSOLDQFHZLWKWKH1DWLRQDO0RUWJDJH6HWWOHPHQWFRQWLQXHGIRU

WKUHH\HDUVIRUWKHLQLWLDOVLJQDWRULHV$WWKDWSRLQW0RQLWRU6PLWKGHWHUPLQHGWKDW&KDVHKDG

SURYLGHGELOOLRQLQFRQVXPHUUHOLHIWKHUHE\³VDWLVI>\LQJ@WKHPLQLPXPUHTXLUHPHQWVDQG

REOLJDWLRQVLPSRVHGXSRQLWXQGHUWKH>1DWLRQDO0RUWJDJH6HWWOHPHQW@WRSURYLGH

&RQVXPHU5HOLHI´0RQLWRU¶V)LQDO&RQVXPHU5HOLHI5HSRUW5HJDUGLQJ'HIHQGDQW-30RUJDQ

&KDVH%DQN1$8QLWHG6WDWHVY%DQNRI$PHULFD&RUSHWDO1R 50&  0DUFK

 >'NW@DW

( 5HODWRU¶V,QWHUHVW

5HODWRU¶VDOOHJDWLRQVDULVHIURPFHUWDLQQRQSHUIRUPLQJPRUWJDJHORDQVWKDWZHUH

VHUYLFHGE\&KDVH2YHUORDQVIURP&KDVH¶V5&9ILOHVZHUHVROGWRFRPSDQLHVRZQHG

E\RUDIILOLDWHGZLWKWKH5HODWRULQFOXGLQJ6 $&DSLWDO3DUWQHUV,QFVW)LGHOLW\/RDQ

6HUYLFLQJ//&DQG0RUWJDJH5HVROXWLRQ6HUYLFLQJ//&&KDVHODWHU³FKDUJHGRII´RU

FDQFHOHGWKHDPRXQWRZHGRQQXPHURXVORDQVRZQHGE\5HODWRU¶VHQWLWLHV,QUHWXUQ&KDVH

UHFHLYHGFUHGLWDJDLQVWWKH1DWLRQDO0RUWJDJH6HWWOHPHQWFRQVXPHUUHOLHIDPRXQWLWZDVUHTXLUHG

WRSURYLGHEHFDXVHLWKDGUHOHDVHGWKHERUURZHUIURPOLDELOLW\IRUWKHGHEW


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 8 of922
of 23

,,/(*$/67$1'$5'

$ 0RWLRQWR'LVPLVV

$PRWLRQWRGLVPLVVIRUIDLOXUHWRVWDWHDFODLPSXUVXDQWWR)HGHUDO5XOHRI&LYLO

3URFHGXUH E  FKDOOHQJHVWKHDGHTXDF\RIDFRPSODLQWRQLWVIDFH6HH)HG5&LY3

 E  7RVXUYLYHDPRWLRQWRGLVPLVVDFRPSODLQWPXVWFRQWDLQVXIILFLHQWIDFWXDO

LQIRUPDWLRQDFFHSWHGDVWUXHWR³VWDWHDFODLPWRUHOLHIWKDWLVSODXVLEOHRQLWVIDFH´$VKFURIWY

,TEDO86   TXRWLQJ%HOO$WO&RUSY7ZRPEO\86  

$FRXUWPXVWDVVXPHWKHWUXWKRIDOOZHOOSOHDGHGIDFWXDODOOHJDWLRQVDQGFRQVWUXHUHDVRQDEOH

LQIHUHQFHVIURPWKRVHDOOHJDWLRQVLQIDYRURIWKHSODLQWLII6HH6LVVHOY'HS¶WRI+HDOWK 

+XPDQ6HUYV)G '&&LU $FRXUWQHHGQRWDFFHSWLQIHUHQFHVGUDZQE\D

SODLQWLIILIVXFKLQIHUHQFHVDUHQRWVXSSRUWHGE\WKHIDFWVVHWRXWLQWKHFRPSODLQW6HH.RZDOY

0&,&RPPF¶QV&RUS)G '&&LU )XUWKHUDFRXUWGRHVQRWQHHGWR

DFFHSWDVWUXHOHJDOFRQFOXVLRQVVHWIRUWKLQDFRPSODLQW6HH,TEDO86DW,QGHFLGLQJ

DPRWLRQXQGHU5XOH E  DFRXUWPD\FRQVLGHUWKHIDFWVDOOHJHGLQWKHFRPSODLQWGRFXPHQWV

DWWDFKHGWRWKHFRPSODLQWDVH[KLELWVRULQFRUSRUDWHGE\UHIHUHQFHDQGPDWWHUVDERXWZKLFKWKH

FRXUWPD\WDNHMXGLFLDOQRWLFH6HH$EKH 6YRERGD,QFY&KDR)G '&

&LU $FRXUWPD\WDNHMXGLFLDOQRWLFHRISXEOLFUHFRUGVIURPRWKHUSURFHHGLQJV6HHLGDW

&RYDG&RPPF¶QV&RY%HOO$WODQWLF&R)G '&&LU 

SHUPLWWLQJMXGLFLDOQRWLFHRIIDFWVFRQWDLQHGLQSXEOLFUHFRUGVRIRWKHUSURFHHGLQJV 0LQW]Y

)',&)6XSSG ''&  MXGLFLDOQRWLFHRIVWDWHPHQWFRQWDLQHGLQDQ6(&

ILOLQJ 

% )DOVH&ODLPV$FW )&$ 86&†HWVHT

7KH)DOVH&ODLPV$FW¶V³FKLHISXUSRVHLVWRSUHYHQWWKHFRPPLVVLRQRIIUDXG

DJDLQVWWKHIHGHUDOJRYHUQPHQWDQGWRSURYLGHIRUWKHUHVWLWXWLRQRIPRQH\WKDWZDVWDNHQIURP


CaseCase
1:15-cv-00293-LTS-JCF
1:14-cv-01047-RMC Document
Document 200-10 Filed
118 Filed 06/29/17Page
12/22/16 Page
9 of1022of 23

WKHIHGHUDOJRYHUQPHQWE\IUDXGXOHQWPHDQV´8QLWHG6WDWHVH[UHO3XUFHOOY0:,&RUS)

6XSSG ''& 7KH)&$LPSRVHVFLYLOSHQDOWLHVIRUWKHVXEPLVVLRQRIIDOVH

FODLPVWRWKH8QLWHG6WDWHVJRYHUQPHQW3ULYDWHSDUWLHVFDOOHGUHODWRUVFDQVXHIRUYLRODWLRQVRI

WKH)&$LQWKHQDPHRIWKH8QLWHG6WDWHV6HH86&† E  6SHFLDOSURFHGXUHVDSSO\

LQVXFKFDVHVZKLFKDUHFDOOHGTXLWDPDFWLRQV²³VKRUWIRUWKH/DWLQSKUDVHTXLWDPSURGRPLQR

UHJHTXDPSURVHLSVRLQKDFSDUWHVHTXLWXUZKLFKPHDQVµZKRSXUVXHVWKLVDFWLRQRQRXU/RUG

WKH.LQJ¶VEHKDOIDVZHOODVKLVRZQ¶´9W$JHQF\RI1DW¶O5HVY8QLWHG6WDWHVH[UHO6WHYHQV

86Q  :KHQDSODLQWLIIUHODWRUILOHVDQLQLWLDOFRPSODLQWLWLVQRW

LPPHGLDWHO\VHUYHGRQWKHGHIHQGDQWEXWLVLQVWHDGVHUYHGRQWKH8QLWHG6WDWHVDORQJZLWK

³ZULWWHQGLVFORVXUHRIVXEVWDQWLDOO\DOOPDWHULDOHYLGHQFHDQGLQIRUPDWLRQWKH>SODLQWLII@

SRVVHVVHV´86&† E  7KHUHDIWHUWKHFDVHLVVWD\HGIRUDPLQLPXPRIVL[W\GD\V

SOXVDQ\H[WHQVLRQVZKLOHWKH8QLWHG6WDWHVGHWHUPLQHVZKHWKHULWZLOOLQWHUYHQH²WKDWLV

ZKHWKHULWZLOO³SURFHHGZLWKWKHDFWLRQLQZKLFKFDVHWKHDFWLRQVKDOOEHFRQGXFWHGE\WKH

*RYHUQPHQWRUGHFOLQH>@WRWDNHRYHUWKHDFWLRQLQZKLFKFDVHWKHSHUVRQEULQJLQJWKH

DFWLRQVKDOOKDYHWKHULJKWWRFRQGXFWWKHDFWLRQ´,G† E  ,IWKHJRYHUQPHQWGHFOLQHV

WRLQWHUYHQHDVKDSSHQHGKHUHWKHFRPSODLQWLVXQVHDOHGDQGWKHSODLQWLIIUHODWRUPD\SURFHHG

ZLWKWKHFDVH(YHQLQFDVHVLQZKLFKWKHJRYHUQPHQWKDVGHFOLQHGWRLQWHUYHQHWKHJRYHUQPHQW

UHWDLQVVSHFLDOULJKWVDW\SLFDOLQWUDGLWLRQDOFLYLODFWLRQVVXFKDVWKHULJKWWRUHFHLYHDOOSOHDGLQJV

LQWHUYHQHDWDQ\WLPHIRUJRRGFDXVHLG† F  DQGSHWLWLRQWKH&RXUWIRUDVWD\RI

GLVFRYHU\LG† F  

& +HLJKWHQHG3OHDGLQJ5HTXLUHPHQWIRU)UDXG

)HGHUDO5XOHRI&LYLO3URFHGXUHUHTXLUHVWKDWHYHU\FRPSODLQWLQFOXGH³DVKRUW

DQGSODLQVWDWHPHQWRIWKHFODLPVKRZLQJWKDWWKHSOHDGHULVHQWLWOHGWRUHOLHI´DQGWKDW³>H@DFK


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1122
10 of of 23

DOOHJDWLRQEHVLPSOHFRQFLVHDQGGLUHFW´)HG5&LY3 D   G  ³>%@HFDXVHWKH

)DOVH&ODLPV$FWLVVHOIHYLGHQWO\DQDQWLIUDXGVWDWXWHFRPSODLQWVEURXJKWXQGHULWPXVW>DOVR@

FRPSO\ZLWK5XOH E ´8QLWHG6WDWHVH[UHO7RWWHQY%RPEDUGLHU&RUS)G

'&&LU  QRWLQJXQLIRUPDSSURDFKRIFLUFXLWFRXUWVWRWKLVLVVXH 5XOH E SURYLGHVD

KHLJKWHQHGSOHDGLQJVWDQGDUGIRUDSDUW\DOOHJLQJIUDXGRUPLVWDNHUHTXLULQJDQ\VXFKSDUW\WR

³VWDWHZLWKSDUWLFXODULW\WKHFLUFXPVWDQFHVFRQVWLWXWLQJIUDXGRUPLVWDNH0DOLFHLQWHQW

NQRZOHGJHDQGRWKHUFRQGLWLRQVRIDSHUVRQ¶VPLQGPD\EHDOOHJHGJHQHUDOO\´)HG5&LY3

 E 

7KH'&&LUFXLWKDVQRWHGWKDW5XOHVDQG E DUHQRWFRQWUDU\DQGVKRXOGEH

UHDGLQFRQMXQFWLRQ

>7@KLVPHDQVWKDWWKHSOHDGHUPXVWVWDWHWKHWLPHSODFHDQGFRQWHQW
RI WKH IDOVH PLVUHSUHVHQWDWLRQV WKH IDFW PLVUHSUHVHQWHG DQG ZKDW
ZDVREWDLQHGRUJLYHQXSDVDFRQVHTXHQFHRIWKHIUDXG7KHUXOH
VHUYHVWRGLVFRXUDJHWKHLQLWLDWLRQRIVXLWVEURXJKWVROHO\IRUWKHLU
QXLVDQFHYDOXHDQGVDIHJXDUGVSRWHQWLDOGHIHQGDQWVIURPIULYRORXV
DFFXVDWLRQV RI PRUDO WXUSLWXGH    $QG EHFDXVH ³IUDXG´
HQFRPSDVVHVDZLGHYDULHW\RIDFWLYLWLHVWKHUHTXLUHPHQWVRI5XOH
 E  JXDUDQWHH DOO GHIHQGDQWV VXIILFLHQW LQIRUPDWLRQ WR DOORZ IRU
SUHSDUDWLRQRIDUHVSRQVH

8QLWHG6WDWHVH[UHO-RVHSKY&DQQRQ)G '&&LU  LQWHUQDOTXRWDWLRQ

PDUNVDQGFLWDWLRQVRPLWWHG VHHDOVR8QLWHG6WDWHVH[UHO:LOOLDPVY0DUWLQ%DNHU$LUFUDIW

&R)G '&&LU 0F4XHHQY:RRGVWUHDP&RUS)5'

''&  ³5XOH E VLPSO\UHTXLUHVWKHSOHDGHUWRSURYLGHDKLJKHUGHJUHHRIQRWLFHE\

DGHTXDWHO\DOOHJLQJDOORIWKHUHTXLVLWHHOHPHQWVIRUWKHFDXVHRIDFWLRQLQYRNHG´ 5XOH E LV

VDWLVILHGZKHQWKHSOHDGHU³SURYLGH>V@WKHµZKRZKDWZKHQZKHUHDQGKRZ¶ZLWKUHVSHFWWRWKH

FLUFXPVWDQFHVRIWKHIUDXG´$QGHUVRQY86$$&DV,QV&R)5' ''&

 


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1222
11 of of 23

3OHDGLQJRQ³LQIRUPDWLRQDQGEHOLHI´IRUFODLPVVXEMHFWWRWKHVWULFWXUHVRI5XOH

 E LVSHUPLWWHGZKHQHVVHQWLDOLQIRUPDWLRQOLHVXQLTXHO\ZLWKLQDQRWKHUSDUW\¶VFRQWURO.RZDO

)GDWQ FLWLQJ&UDIWPDWLF6HF/LWLJY.UDIWVRZ)G G&LU 

7RSOHDGRQLQIRUPDWLRQDQGEHOLHIKRZHYHUWKHSODLQWLIIPXVWDOOHJH³WKDWWKHQHFHVVDU\

LQIRUPDWLRQOLHVZLWKLQWKHGHIHQGDQW¶VFRQWURO´DQGLQFOXGH³DVWDWHPHQWRIWKHIDFWVXSRQZKLFK

WKHDOOHJDWLRQVDUHEDVHG´,GVHHDOVR$QGHUVRQ)5'DW

' 3URFHGXUDO+LVWRU\

2Q0D\0U6FKQHLGHUILOHGKLVLQLWLDO&RPSODLQWDV5HODWRUXQGHUWKH

)DOVH&ODLPV$FWVHH86&† E  LQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH'LVWULFW

RI6RXWK&DUROLQD6HH&RPSO>'NW@7KH)HGHUDO*RYHUQPHQWGHFOLQHGWRLQWHUYHQHRQ

-DQXDU\6HH1RWLFH>'NW@7KHFDVHZDVWUDQVIHUUHGWRWKLV&RXUWRQ-XQH

6HH7UDQVIHU2UGHU>'NW@5HODWRUILOHGKLV)LUVW$PHQGHG&RPSODLQWRQ1RYHPEHU

6HH)$&>'NW@2Q$XJXVWWKH)HGHUDO*RYHUQPHQWDJDLQGHFOLQHGWR

LQWHUYHQH6HH)$&1RWLFH>'NW@5HODWRUILOHGD6HFRQG$PHQGHG&RPSODLQWRQ2FWREHU

6HH6$&>'NW@'HIHQGDQWPRYHGWRGLVPLVVRQ1RYHPEHU6HH0RW

>'NW@5HODWRURSSRVHGVHH2SS¶Q>'NW@DQG'HIHQGDQWUHSOLHGVHH5HSO\>'NW

@

7KLV&RXUWKDVVXEMHFWPDWWHUMXULVGLFWLRQSXUVXDQWWR86&†DQG

86&† D 7KH&RXUWDOVRKDVVXSSOHPHQWDOMXULVGLFWLRQRYHUWKH6WDWHODZFRXQWVXQGHU

WKH6WDWH)DOVH&ODLPV$FWVSXUVXDQWWR86&†7KLV&RXUWLVWKHSURSHUYHQXH



5HODWRUILOHGD1RWLFHRI6XSSOHPHQWDO$XWKRULW\VHH1RWLFHRI6XSS$XWK>'NW@WR
ZKLFK'HIHQGDQWUHVSRQGHGVHH5HVSRQVH>'NW@

6HFWLRQSURYLGHVIRUVXSSOHPHQWDOMXULVGLFWLRQ³RYHUDOORWKHUFODLPVWKDWDUHVRUHODWHGWR
FODLPVLQWKHDFWLRQZLWKLQVXFKRULJLQDOMXULVGLFWLRQWKDWWKH\IRUPSDUWRIWKHVDPHFDVHRU
FRQWURYHUV\XQGHU$UWLFOH,,,RIWKH8QLWHG6WDWHV&RQVWLWXWLRQ´86&† D 7KH


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1322
12 of of 23

EHFDXVHWKHXQGHUO\LQJ1DWLRQDO0RUWJDJH6HWWOHPHQWZDVDSSURYHGE\WKLV&RXUWDQG'HIHQGDQW

FRQGXFWVEXVLQHVVLQWKH'LVWULFWRI&ROXPELD6HH86&† D 

,,,$1$/<6,6

5HODWRUDOOHJHVWKDW&KDVHYLRODWHGWKH)DOVH&ODLPV$FWE\IDOVHO\FODLPLQJ  

WKDWLWPHW6HUYLFLQJ6WDQGDUGVDQGFRPSOLHGZLWKWKHFRQVXPHUUHOLHIUHTXLUHPHQWVRIWKH

1DWLRQDO0RUWJDJH6HWWOHPHQWDQG  WKDWLWPHWWKHVHUYLFLQJVWDQGDUGVVSHFLILHGLQ+$03DQG

DVUHTXLUHGSURYLGHGORDQPRGLILFDWLRQVWRVXIILFLHQWQXPEHUVRIHOLJLEOHERUURZHUV

$ 1DWLRQDO0RUWJDJH6HWWOHPHQW&ODLPV

5HODWRUDOOHJHVWKDW&KDVH¶VIDOVHFODLPVUHJDUGLQJLWVFRPSOLDQFHZLWKWKH

1DWLRQDO0RUWJDJH6HWWOHPHQWSURYLGHG&KDVHZLWKWKHEHQHILWRIFUHGLWIRUFRQVXPHUUHOLHIWKDW

LWRWKHUZLVHVKRXOGQRWKDYHUHFHLYHG&KDVHPRYHVWRGLVPLVVIRUSURFHGXUDOIDLOXUHVDQGIDLOXUH

WRVWDWHDFODLPXSRQZKLFKUHOLHIPD\EHJUDQWHG

&KDVHFLWHVWZRLVVXHVWKDWLWFRQWHQGVSUHFOXGH5HODWRU¶VVXLWFRQFHUQLQJWKH

1DWLRQDO0RUWJDJH6HWWOHPHQW  5HODWRUIDLOHGWRH[KDXVWWKHGLVSXWHUHVROXWLRQSURFHGXUHV

UHTXLUHGE\WKH1DWLRQDO0RUWJDJH6HWWOHPHQWEHIRUHILOLQJVXLWDQG  5HODWRULPSURSHUO\

DWWDFNVWKH0RQLWRU¶VGHWHUPLQDWLRQVWKDW&KDVHFRPSOLHGZLWKWKH1DWLRQDO0RUWJDJH

6HWWOHPHQW,QGHHGWKH1DWLRQDO0RUWJDJH6HWWOHPHQWSURYLGHGVSHFLILFSURFHGXUHVEHIRUHVXLW


6WDWHODZFODLPVDUH6WDWH)DOVH&ODLPV$FWFODLPVEDVHGRQWKHVDPHIDFWVDVWKH)HGHUDO)DOVH
&ODLPV$FWFODLPVVSHFLILFDOO\IDOVHFODLPVUHJDUGLQJFRPSOLDQFHZLWKWKH1DWLRQDO0RUWJDJH
6HWWOHPHQW

5HODWRU¶V6WDWHODZFODLPVUHVWRQWKHVDPHIDFWXDODOOHJDWLRQVDV&RXQW,WKHIHGHUDO)DOVH
&ODLPV$FWFODLPEDVHGRQDOOHJHGIDOVHVWDWHPHQWVUHJDUGLQJFRPSOLDQFHZLWKWKH1DWLRQDO
0RUWJDJH6HWWOHPHQW5HODWRUSURYLGHVQRDGGLWLRQDOIDFWVWRVXSSRUWWKH6WDWHODZFODLPVDQG
GRHVQRWDUJXHWKDWDQ\RIWKH6WDWHODZVZRXOGSURYLGHIRUOLDELOLW\LQWKHDEVHQFHRIOLDELOLW\
XQGHUWKH)HGHUDO)DOVH&ODLPV$FW7KHUHIRUHHDFKRIWKH6WDWHODZFRXQWVZLOOEHGLVPLVVHG
IRUWKHVDPHUHDVRQVDV&RXQW,


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1422
13 of of 23

RUFKDOOHQJHWRGHWHUPLQDWLRQVPDGHE\WKH0RQLWRU%HFDXVH5HODWRUVWDQGVLQWKHSRVLWLRQRI

WKH)HGHUDO*RYHUQPHQWLQWKLVFDVHKHLVUHTXLUHGWRKDYHH[KDXVWHGDOOUHPHGLHVWKH)HGHUDO

*RYHUQPHQWZRXOGKDYHEHHQUHTXLUHGWRH[KDXVWSULRUWRVXLW6HH8QLWHG6WDWHVH[UHO0RUJDQ

Y6FL$SSOLFDWLRQV,QW¶O&R)6XSSG ''&  ILQGLQJUHODWRU³VWDQGVLQ

WKHVKRHVRIWKHIHGHUDOJRYHUQPHQWDVDSODLQWLII´ 8QGHUWKH1DWLRQDO0RUWJDJH6HWWOHPHQWD

SDUW\ZLVKLQJWRGLVSXWHFRPSOLDQFHE\DVLJQDWRU\EDQNZDVUHTXLUHGWRIROORZH[SOLFLWVWHSV

 JLYHQRWLFHWRWKHDOOHJHGO\QRQFRPSOLDQWEDQNWKH0RQLWRUDQGWKH0RQLWRULQJ&RPPLWWHH

DQG  ³HQJDJHLQJRRGIDLWKHIIRUWVWRUHDFKDJUHHPHQWRQWKHSURSHUUHVROXWLRQRIDQ\GLVSXWH´

&RQVHQW-XGJPHQW([(DW(VHHDOVRLGDW(,IWKHDJJULHYHGSDUW\ZHUHQRWDVVXDJHG

LWFRXOGWKHQQRWLI\WKH0RQLWRULQJ&RPPLWWHHRILWVLQWHQWWRILOHDQHQIRUFHPHQWDFWLRQ7KH

0RQLWRULQJ&RPPLWWHHZDVDIIRUGHGGD\VWRFRQVLGHUZKHWKHULWZRXOGVXHEHIRUHDQ\RWKHU

HQIRUFHPHQWDFWLRQFRXOGEHILOHGDQGLIWKH&RPPLWWHHGHFLGHGQRWWRVXHWKHPRYLQJSDUW\ZDV

UHTXLUHGWRZDLWDQRWKHUGD\VEHIRUHFRPPHQFLQJOLWLJDWLRQ6HHLGDW(

&KDVHDUJXHVWKDWEHFDXVH5HODWRUIDLOHGWRIROORZWKHVHPDQGDWRU\SUHOLWLJDWLRQ

VWHSVZKLFKZRXOGKDYHFRQVWUDLQHGWKH8QLWHG6WDWHVDQ\FODLPVRIQRQFRPSOLDQFHZLWKWKH

6HWWOHPHQWPXVWEHGLVPLVVHG5HODWRUUHVSRQGVWKDWWKHGLVSXWHUHVROXWLRQSURFHGXUHVLQWKH

1DWLRQDO0RUWJDJH6HWWOHPHQWDUHQRWDSSOLFDEOHWRKLV)&$DOOHJDWLRQVEHFDXVHWKH1DWLRQDO

0RUWJDJH6HWWOHPHQWPXVWEHUHDGLQDPDQQHUFRQVLVWHQWZLWKWKH6HUYLFHU3DUWLFLSDWLRQ

$JUHHPHQWEHWZHHQ)DQQLH0DHDQG7UHDVXU\XQGHU+$037KH6HUYLFHU3DUWLFLSDWLRQ

$JUHHPHQWVSHFLILFDOO\SURYLGHVWKDWYLRODWLRQVRILWVWHUPVDUHVXEMHFWWRWKH)&$DQGVWDWHV



7KH1DWLRQDO0RUWJDJH6HWWOHPHQWLQGLFDWHVWKDW

7KHSURYLVLRQRIFRQVXPHUUHOLHIE\WKH6HUYLFHULQDFFRUGDQFHZLWK
WKLV$JUHHPHQWLQFRQQHFWLRQZLWKDQ\UHVLGHQWLDOPRUWJDJHORDQLV
H[SUHVVO\VXEMHFWWRDQGVKDOOEHLQWHUSUHWHGLQDFFRUGDQFHZLWKDV
DSSOLFDEOH WKH WHUPV DQG SURYLVLRQV RI WKH 6HUYLFHU 3DUWLFLSDWLRQ


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1522
14 of of 23

6HUYLFHU DFNQRZOHGJHV WKDW WKH SURYLVLRQ RI IDOVH RU PLVOHDGLQJ


LQIRUPDWLRQWR)DQQLH0DHRU)UHGGLH0DFLQFRQQHFWLRQZLWKDQ\
RI WKH 3URJUDPV RU SXUVXDQW WR WKH $JUHHPHQW PD\ FRQVWLWXWH D
YLRODWLRQRI D )HGHUDOFULPLQDOODZLQYROYLQJIUDXGFRQIOLFWRI
LQWHUHVW EULEHU\ RU JUDWXLW\ YLRODWLRQV IRXQG LQ 7LWOH  RI WKH
8QLWHG 6WDWHV &RGH RU E  WKH FLYLO)DOVH &ODLPV $FW  ,86&
†† 

2SS¶Q([>'NW@ $PHQGHGDQG5HVWDWHG&RPPLWPHQWWR3XUFKDVH)LQDQFLDO

,QVWUXPHQWDQG6HUYLFHU3DUWLFLSDWLRQ$JUHHPHQW DW%5HODWRU¶VFRQIXVLRQEHWZHHQWKH

1DWLRQDO0RUWJDJH6HWWOHPHQWDQG+$03SHUYDGHVKLVDUJXPHQWV

$JUHHPHQWVOLNHVWDWXWHVVKRXOGEHUHDGWRDYRLGVXUSOXVDJHZKHUHSRVVLEOH6HH

)UHHPDQY4XLFNHQ/RDQV,QF6&W   ³>7@KHFDQRQDJDLQVWVXUSOXVDJH

PHUHO\IDYRUVWKDWLQWHUSUHWDWLRQZKLFKDYRLGVVXUSOXVDJH´ :KLOH5HODWRUZRXOGOLNHWKH&RXUW

WRUHDGWKH1DWLRQDO0RUWJDJH6HWWOHPHQW¶VDOWHUQDWLYHGLVSXWHUHVROXWLRQSURFHVVDVLQFRQVLVWHQW

ZLWKWKHUHPHGLHVXQGHUWKH+$036HUYLFHU3DUWLFLSDWLRQ$JUHHPHQWWKH&RXUWILQGVWKH\FDQ

UHDGLO\EHUHFRQFLOHG7KH1DWLRQDO0RUWJDJH6HWWOHPHQWLVVXLJHQHULVDQGWKH8QLWHG6WDWHVLVD

VLJQDWRU\5HODWRUZKRDFWVRQEHKDOIRIWKH8QLWHG6WDWHVLVVLPSO\ERXQGWRLWVWHUPVLQDQ\

FRPSODLQWRIQRQFRPSOLDQFH+DG5HODWRUILUVWFRPSOHWHGWKHDOWHUQDWLYHGLVSXWHSURFHGXUHLQ

WKH1DWLRQDO0RUWJDJH6HWWOHPHQWKHWKHQPLJKWKDYHVXHG1RWKDYLQJFRPSOHWHGWKHIRUPHU

KHFDQQRWEHJLQWKHODWHU


$JUHHPHQW ZLWK WKH 86 'HSDUWPHQW RI 7UHDVXU\    SURYLGHG
KRZHYHU WKDW WKH LQDELOLW\ RI D 6HUYLFHU WR RIIHU D W\SH IRUP RU
IHDWXUHRIWKHFRQVXPHUUHOLHISD\PHQWVE\YLUWXHRIDQ$SSOLFDEOH
5HTXLUHPHQWVKDOOQRWUHOLHYHWKH6HUYLFHURILWVDJJUHJDWHFRQVXPHU
UHOLHIREOLJDWLRQVLPSRVHGE\WKLV$JUHHPHQW

&RQVHQW-XGJPHQW(['DW'


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1622
15 of of 23

% +$03&ODLP

5HODWRUDUJXHVWKDW&KDVHYLRODWHGWKH)&$E\NQRZLQJO\VXEPLWWLQJIDOVHRU

IUDXGXOHQWDQQXDOFHUWLILFDWLRQVWKDWLWKDGFRPSOLHGZLWK+$03HYHQWKRXJKWKHFHUWLILFDWLRQV

³IDLOHGWRGLVFORVHWKDW&KDVHGLGQRWVROLFLW5&9ERUURZHUVWRDSSO\IRU+$03ORDQ

PRGLILFDWLRQV´2SS¶QDW&KDVHUHVSRQGVWKDW5HODWRU¶V+$03FODLPVIDLODVDPDWWHURI

ODZEHFDXVHKH³GRHVQRWDGHTXDWHO\DOOHJHWKDW&KDVH¶VQRQVROLFLWDWLRQRI5&9ERUURZHUV

FRQVWLWXWHGµPDWHULDO¶YLRODWLRQRI+$03¶VUHTXLUHPHQWV´DQG³PDWHULDOFRPSOLDQFH´LVDOOWKDW

LVUHTXLUHGXQGHU+$03,G HPSKDVLVLQRULJLQDO &KDVHDGGVWKDW5HODWRUKDVIDLOHGWRDOOHJH

WKDWDQ\VWDWHPHQWVLQWKH&KDVH+$03FRPSOLDQFHUHSRUWVZHUHIDOVH&KDVHDOVRDUJXHVWKDW

5HODWRUIDLOHGWRDOOHJHWKDWDQ\IDOVHVWDWHPHQWVZHUHPDGHNQRZLQJO\EHFDXVHWKH)HGHUDO

*RYHUQPHQWNQHZWKDW&KDVHKDGQRWVROLFLWHG5&9ERUURZHUVEHIRUHLWZURWHRIIWKHLUGHEWV

&KDVHLGHQWLILHVWKUHHUHDVRQVWKDWLWVFODLPVHYHQLI³IDOVH´ZHUHQRW³PDWHULDO´

)LUVW&KDVHDUJXHV5HODWRUIDLOVWRDOOHJHWKDWDVXEVWDQWLDOQXPEHURIERUURZHUVZDVDIIHFWHG

EHFDXVH5&9ERUURZHUVPLJKWQRWKDYHTXDOLILHGIRU+$03DWDOOLQWKDW&KDVHZURWHRII

VHFRQGOLHQPRUWJDJHVDQGIRUJDYHRWKHUV&KDVHDOVRDUJXHVWKDW5HODWRUGRHVQRWDOOHJHWKDW

³QRQVROLFLWDWLRQRI5&9ERUURZHUVUHVXOWHGLQLQMXU\WRWKRVHERUURZHUVRULQWHUIHUHGZLWKWKH

JRDOVRIWKH+$03SURJUDP´WKHIXQGDPHQWDOSXUSRVHRIZKLFK³LVWRDYRLGXQQHFHVVDU\

IRUHFORVXUHV´0RWDW%HFDXVH&KDVHIRUJDYHPDQ\5&9ORDQVWKH\ZHUHQRWIRUHFORVHG

XSRQDQG+$03ZDVQRWLPSOLFDWHG)LQDOO\&KDVHDUJXHV5HODWRUIDLOHGWRDOOHJHWKDW7UHDVXU\

ZDVXQDZDUHRIWKHQRQVROLFLWDWLRQRI5&9ORDQV

5HODWRUIRFXVHVRQWKHGHILQLWLRQRI³PDWHULDO´LQWKH)&$ZKLFKLWGHILQHVDV

³KDYLQJDQDWXUDOWHQGHQF\WRLQIOXHQFHRUEHFDSDEOHRILQIOXHQFLQJWKHSD\PHQWRUUHFHLSWRI

PRQH\RUSURSHUW\´86&† E  5HODWRUDUJXHVWKDWKLV6HFRQG$PHQGHG


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1722
16 of of 23

&RPSODLQWLQIHUVWKDWDVXEVWDQWLDOQXPEHURIERUURZHUVZDVLPSDFWHGGXHWRKLVDOOHJDWLRQV

FRQFHUQLQJWKHQXPEHURIORDQVLQWKH5&9V\VWHPDQGWKH0RQLWRU¶VILQDOUHSRUWFRQFHUQLQJ

&KDVH¶VORDQVUHSRUWHGHOLJLEOHIRUPRGLILFDWLRQXQGHUWKH1DWLRQDO0RUWJDJH6HWWOHPHQW

5HODWRUXUJHVWKH&RXUWWRDVVXPHWKDW+$03FRPSOLDQFHSHUVRQQHOKDGQRQRWLFHRI&KDVH¶V

SROLFLHVDQGSURFHGXUHVUHODWHGWR5&9ORDQV+LVDUJXPHQWVWDUWVZLWKKLVDOOHJDWLRQVWKDW

³&KDVHXQGHUUHSRUWHGWRWKH0RQLWRU´DQGFRQFOXGHVWKDW&KDVHPXVWDOVRKDYHXQGHUUHSRUWHGWR

+$03)LQDOO\5HODWRUDUJXHVWKDWWKHPDWHULDOLW\RIWKHYLRODWLRQVFDQEHSUHVXPHGEHFDXVH

WKH8QLWHG6WDWHV7UXVWHH3URJUDPIRXQGWKDW&KDVHYLRODWHGDVHSDUDWH&RQVHQW-XGJPHQW

ZLWKWKH2IILFHRIWKH&RPSWUROOHURIWKH&XUUHQF\ 2&& 

7KH)DOVH&ODLPV$FWLPSRVHVOLDELOLW\RQDQ\SHUVRQZKR³NQRZLQJO\SUHVHQWV

RUFDXVHVWREHSUHVHQWHGDIDOVHRUIUDXGXOHQWFODLPIRUSD\PHQWRUDSSURYDO´86&

† D  $ 7KHUHDUHWKUHHHOHPHQWVWR)&$SUHVHQWPHQWXQGHU† D  $   WKH

GHIHQGDQWSUHVHQWHGDFODLPIRUSD\PHQWRUDSSURYDOWRWKH)HGHUDO*RYHUQPHQW  WKHFODLP

ZDV³IDOVHRUIUDXGXOHQW´DQG  WKHGHIHQGDQWDFWHGNQRZLQJWKDWWKHFODLPZDVIDOVHRU

IUDXGXOHQWZKHQKHVXEPLWWHGLW8QLWHG6WDWHVH[UHO6FKZHGWY3ODQQLQJ5HVHDUFK&RUS

)G '&&LU $³FODLP´DVUHOHYDQWKHUHLV³DQ\UHTXHVWRUGHPDQG

ZKHWKHUXQGHUDFRQWUDFWRURWKHUZLVHIRUPRQH\RUSURSHUW\DQGZKHWKHURUQRWWKH8QLWHG

6WDWHVKDVWLWOHWRWKHPRQH\RUSURSHUW\WKDW L LVSUHVHQWHGWRDQRIILFHUHPSOR\HHRUDJHQWRI



5HODWRUGRHVQRWUHVSRQGWR&KDVH¶VDUJXPHQWFRQFHUQLQJ+$03¶VPDWHULDOLW\UHTXLUHPHQW
IRFXVLQJLQVWHDGRQWKH0RQLWRU¶VUHSRUWVRIFRPSOLDQFHZLWKWKH1DWLRQDO0RUWJDJH6HWWOHPHQW
KHWKXVZDLYHVWKHDUJXPHQW6HH-RQHVY$LU/LQH3LORWV$VV¶Q)6XSSG
''& 

86&†ZDVDPHQGHGLQ0D\VHH3XE/† D 6WDW 0D\
 DQG†ZDVDPHQGHGLQ-XO\VHH3XE/7LWOH;†$ F 
6WDW -XO\ 7KHSRVWDPHQGPHQWYHUVLRQVDSSO\WRWKHDOOHJDWLRQVKHUHDOORI
ZKLFKWRRNSODFHLQ6HSWHPEHURUODWHU6HH6$&ˆˆ


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1822
17 of of 23

WKH8QLWHG6WDWHV´86&† E  $ 7KHWHUP³NQRZLQJ´PHDQVWKDWDSHUVRQHLWKHU

³ L KDVDFWXDONQRZOHGJHRIWKHLQIRUPDWLRQ LL DFWVLQGHOLEHUDWHLJQRUDQFHRIWKHWUXWKRU

IDOVLW\RIWKHLQIRUPDWLRQRU LLL DFWVLQUHFNOHVVGLVUHJDUGRIWKHWUXWKRUIDOVLW\RIWKH

LQIRUPDWLRQ´EXWLWGRHVQRWUHTXLUH³SURRIRIVSHFLILFLQWHQWWRGHIUDXG´,G† E  $ 

% 

7KH)&$DOVRSURYLGHVDFDXVHRIDFWLRQDJDLQVWDQ\SHUVRQZKR³NQRZLQJO\

PDNHVXVHVRUFDXVHVWREHPDGHRUXVHGDIDOVHUHFRUGRUVWDWHPHQWPDWHULDOWRDIDOVHRU

IUDXGXOHQWFODLP´,G† D  % ³0DWHULDO´LVGHILQHGDV³KDYLQJDQDWXUDOWHQGHQF\WR

LQIOXHQFHRUEHFDSDEOHRILQIOXHQFLQJWKHSD\PHQWRUUHFHLSWRIPRQH\RUSURSHUW\´,G

† E  7KXVXQGHUWKHODZDSODLQWLIIPXVWDOOHJHWKDW  WKHGHIHQGDQWPDGHRUXVHGD

³UHFRUGRUVWDWHPHQW´  WKHUHFRUGRUVWDWHPHQWZDVIDOVH  WKHGHIHQGDQWNQHZLWZDVIDOVH

DQG  WKHUHFRUGRUVWDWHPHQWZDV³PDWHULDO´WRDIDOVHRUIUDXGXOHQWFODLP,G† D  % 

%HFDXVH5XOH E DSSOLHV³WKHSOHDGHUPXVWVWDWHWKHWLPHSODFHDQGFRQWHQWRIWKHIDOVH

PLVUHSUHVHQWDWLRQV>DQG@WKHIDFWPLVUHSUHVHQWHG´-RVHSK)GDW LQWHUSUHWLQJSULRU

VHFWLRQ D  

$SODLQWLII¶VWDVNLVWR³SOHDGIDFWXDOFRQWHQWWKDWDOORZVWKHFRXUWWRGUDZWKH

UHDVRQDEOHLQIHUHQFHWKDWWKHGHIHQGDQWLVOLDEOHIRUWKHPLVFRQGXFWDOOHJHG´8QLWHG6WDWHVH[UHO

:HVWULFNY6HFRQG&KDQFH%RG\$UPRU,QF)6XSSG ''& EHFDXVH

³>Z@KLOH5XOH E UHTXLUHVPRUHSDUWLFXODULW\WKDQ5XOH5XOH E GRHVQRWFRPSOHWHO\

YLWLDWHWKHOLEHUDOLW\RI5XOH´8QLWHG6WDWHVH[UHO3RJXHY'LDEHWHV7UHDWPHQW&WUVRI$P

,QF)6XSSG ''& &KDVHFRQWHQGVWKDWLWV+$03GLVFORVXUHVWR



5XOHUHTXLUHVWKDWHYHU\FRPSODLQWLQFOXGH³DVKRUWDQGSODLQVWDWHPHQWRIWKHFODLPVKRZLQJ
WKDWWKHSOHDGHULVHQWLWOHGWRUHOLHI´DQGWKDW³>H@DFKDOOHJDWLRQEHVLPSOHFRQFLVHDQG
GLUHFW´)HG5&LY3 D   G  


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 1922
18 of of 23

)DQQLH0DHZHUHQRWPDWHULDOO\IDOVHEHFDXVH+$03LPSRVHVDGLVWLQFWGLVFORVXUHUHTXLUHPHQW

RI³LQVWDQFHVRIQRQFRPSOLDQFHWKDW>WKHVHUYLFHU@EHOLHYHVKDYHDPDWHULDOHIIHFWRQLWVDELOLW\WR

FRPSO\ZLWK0+$SURJUDPUHTXLUHPHQWV´0+$+DQGERRNDW HPSKDVLVDGGHG ,QOLJKWRI

WKHWHUPVVHWE\7UHDVXU\QRQFRPSOLDQFHZLWK+$03ZRXOGEHVKRZQRQO\LI&KDVH¶VQRQ

VROLFLWDWLRQRI5&9ORDQVIRU+$03PRGLILFDWLRQKDGDPDWHULDOHIIHFWRQ&KDVH¶V³DELOLW\WR

FRPSO\´ZLWKWKH0DNLQJ+RPH$IIRUGDEOHSURJUDPUHTXLUHPHQWV5HODWRUPDNHVQRVXFK

DOOHJDWLRQV+LVDUJXPHQWVFRQFHUQLQJ5&9ORDQVHOLJLEOHIRUPRGLILFDWLRQIRFXVRQWKHLU

HOLJLELOLW\XQGHUWKH1DWLRQDO0RUWJDJH6HWWOHPHQWQRW+$03$OWKRXJKWKLVLVDQ)&$

ODZVXLWDYLRODWLRQRIWKHFHUWLILFDWLRQSURQJRI)&$FDQEHIRXQGRQO\LIDSDUW\PDNHVD³IDOVH

UHSUHVHQWDWLRQRIFRPSOLDQFHZLWKDQDSSOLFDEOHIHGHUDOVWDWXWHIHGHUDOUHJXODWLRQRUFRQWUDFWXDO

WHUP´6$,&)GDW6XFKKDVQRWEHHQDOOHJHG

)HGHUDO5XOHRI&LYLO3URFHGXUH E UHTXLUHV0U6FKQHLGHUWRDOOHJH³WKHWLPH

SODFHDQGFRQWHQWRIWKHIDOVHPLVUHSUHVHQWDWLRQV>DQG@WKHIDFWPLVUHSUHVHQWHG´-RVHSK

)GDW6HFWLRQ9,RI0U6FKQHLGHU¶V6HFRQG$PHQGHG&RPSODLQWLGHQWLILHVWKH

³'RFXPHQWDWLRQ&RQWDLQLQJ)DOVH&ODLPV´DQGQRWHVWKHGDWHRIHDFKGRFXPHQW6$&DW

7KH&RXUWLGHQWLILHVWZRLQVWDQFHVRIDOOHJHGIDOVHFODLPVUHOHYDQWWR+$03LQWKH&RPSODLQW

2Q6HSWHPEHU&KDVHILOHGD&HUWLILFDWLRQRIFRPSOLDQFH
ZLWK LWV ³&RPPLWPHQW WR 3XUFKDVH )LQDQFLDO ,QVWUXPHQW DQG
6HUYLFHU 3DUWLFLSDWLRQ $JUHHPHQW´  7KLV FHUWLILFDWLRQ FRQWDLQHG
)DOVH&ODLPV

2Q 6HSWHPEHU   &KDVH¶V VXEVLGLDU\ (0& ILOHG D


&HUWLILFDWLRQ RI FRPSOLDQFH ZLWK LWV ³&RPPLWPHQW WR 3XUFKDVH
)LQDQFLDO,QVWUXPHQWDQG6HUYLFHU3DUWLFLSDWLRQ$JUHHPHQW´7KLV
&HUWLILFDWLRQFRQWDLQHG)DOVH&ODLPV


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 2022
19 of of 23

6$&ˆˆ%RWKRIWKHVHLQVWDQFHVRIDOOHJHGIDOVHFODLPVRFFXUUHGLQEHIRUHWKH

1DWLRQDO0RUWJDJH6HWWOHPHQWLQDQGWKHUHIRUHDQ\GDWDDERXW5&9ORDQVGLVFKDUJHGDQG

UHSRUWHGWRWKH0RQLWRUDVDUHVXOWRIWKH1DWLRQDO0RUWJDJH6HWWOHPHQWLQRUODWHUDUH

LUUHOHYDQWWRWKHIDOVLW\RIWKHDOOHJHGFODLPVPDGHXQGHU+$03LQ5HODWRU¶V&RPSODLQW

IRFXVHVRQDFWLRQVGXULQJWKH\HDUFRPSOLDQFHSHULRGRIWKH1DWLRQDO0RUWJDJH6HWWOHPHQW

SHULRGDQGSURYLGHVQRDOOHJDWLRQVLGHQWLI\LQJWKH³IDFWPLVUHSUHVHQWHG´WRWKH+$03

FRPSOLDQFHPRQLWRULQ

5HODWRU¶VDUJXPHQWWKDWWKH&RQVHQW-XGJPHQWZLWKWKH2&&DOVR

GHPRQVWUDWHVPDWHULDOIDOVHVWDWHPHQWVE\&KDVHIDUHVQREHWWHU5HODWRUGRHVQRWDOOHJHWKDWWKH

2&&&RQVHQW-XGJPHQWLQFOXGHVDGHWHUPLQDWLRQWKDW&KDVHYLRODWHG+$03RUIDLOHGWRFRPSO\

ZLWKWKHQRWLFHUHTXLUHPHQWVRI+$03$GGLWLRQDOO\5HODWRUIDLOVWRDOOHJHWKDWDQ\SDUWRIWKH

2&&&RQVHQW-XGJPHQWZDVVXEVWDQWLDOO\VLPLODUWRUHTXLUHPHQWVXQGHU+$03DQGFRXOG

WKHUHIRUHGHPRQVWUDWHPDWHULDOPLVUHSUHVHQWDWLRQVE\&KDVHXQGHU+$035HODWRULV

HIIHFWLYHO\DVNLQJWKH&RXUWWRDVVXPHWKDW&KDVH¶VDGPLVVLRQRIZURQJGRLQJLQDQXQUHODWHG

&RQVHQW-XGJPHQWLVHYLGHQFHWKDW&KDVHPDGHIDOVHVWDWHPHQWVWR)DQQLH0DHUHJDUGLQJLWV

+$03FRPSOLDQFH:LWKRXWIDFWVVSHFLILFWR+$03DQGDOOHJDWLRQVUHJDUGLQJWKHPDWHULDOLW\RI

DQ\PLVUHSUHVHQWDWLRQVFRQFHUQLQJ&KDVH¶V+$03VSHFLILFFRPSOLDQFHREOLJDWLRQV5HODWRU¶V

)&$FODLPVXQGHU+$03PXVWEHGLVPLVVHG

& 6WDWH&ODLPV

&RXQWV,,,WKURXJK;;,,,UDLVHWKHIROORZLQJ6WDWHODZFODLPV

&RXQW ,,,  &DOLIRUQLD )DOVH &ODLPV $FW &DO *RY¶W &RGH


† D  



$OORWKHUSDUDJUDSKVLQ6HFWLRQ9,RIWKH6HFRQG$PHQGHG&RPSODLQWVSHFLI\QRWLFHVRU
UHSRUWVVXEPLWWHGE\&KDVHWR0RQLWRU6PLWKXQGHUWKH1DWLRQDO0RUWJDJH6HWWOHPHQW


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 2122
20 of of 23

&RXQW ,9  'HODZDUH )DOVH &ODLPV $FW 'HO &RGH $QQ WLW 
† D  

&RXQW9'LVWULFWRI&ROXPELD)DOVH&ODLPV$FW'&&RGH†
 D  

&RXQW9,)ORULGD)DOVH&ODLPV$FW)OD6WDW†  J 

&RXQW 9,,  *HRUJLD )DOVH &ODLPV $FW *D &RGH $QQ † 
 D  

&RXQW 9,,,  +DZDLL )DOVH &ODLPV $FW +DZ 5HY 6WDW †
 D  

&RXQW,;,OOLQRLV:KLVWOHEORZHU5HZDUGDQG3URWHFWLRQ$FW
,OO&RPS6WDW† D  * 

&RXQW;,QGLDQD)DOVH&ODLPVDQG:KLVWOHEORZHU3URWHFWLRQ$FW
,QG&RGH† E  

&RXQW;,,RZD)DOVH&ODLPV$FW,RZD&RGH†  J 

&RXQW;,,0DVVDFKXVHWWV)DOVH&ODLPV$FW0DVV*HQ/DZVFK
†% D  

&RXQW ;,,,  0LQQHVRWD )DOVH &ODLPV $FW 0LQQ 6WDW


†& D  

&RXQW;,90RQWDQD)DOVH&ODLPV$FW0RQW&RGH$QQ†
  J 

&RXQW ;9  1HYDGD )DOVH &ODLPV $FW 1HY 5HY 6WDW


†  J 

&RXQW ;9,  1HZ +DPSVKLUH )DOVH &ODLPV $FW 1+ 5HY 6WDW
$QQ†E , H 

&RXQW ;9,,  1HZ -HUVH\ )DOVH &ODLPV $FW 1- 6WDW $QQ
†$& J 



7KH'LVWULFWRI&ROXPELD)DOVH&ODLPV$FWKDVEHHQUHFRGLILHGDW'&&RGH$QQ†


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 2222
21 of of 23

&RXQW ;9,,,  1HZ 0H[LFR )UDXG $JDLQVW 7D[SD\HUV $FW 10


6WDW$QQ† $  

&RXQW ;,;  1HZ <RUN )DOVH &ODLPV $FW 1< 6WDWH )LQ /DZ
†  J 

&RXQW;;1RUWK&DUROLQD)DOVH&ODLPV$FW1&*HQ6WDW†
 D  

&RXQW;;,5KRGH,VODQG)DOVH&ODLPV$FW5,*HQ/DZV†
 D  

&RXQW;;,,7HQQHVVHH)UDXG$JDLQVW7D[SD\HUV$FW7HQQ&RGH
$QQ† D  

&RXQW ;;,,,  9LUJLQLD )UDXG $JDLQVW 7D[SD\HUV $FW 9D &RGH


$QQ† $  

(DFK6WDWHODZFRXQWLQFOXGHVWKHVDPHFODLPEDVHGRQWKH1DWLRQDO0RUWJDJH6HWWOHPHQWWR

ZKLFKHDFKRIWKH6WDWHVDQGWKH'LVWULFWRI&ROXPELDZDVDSDUW\DQGVLJQDWRU\5HODWRUDOOHJHV

&KDVHNQRZLQJO\RUDFWLQJLQGHOLEHUDWHLJQRUDQFHDQGRUUHFNOHVV
GLVUHJDUG RI WKH WUXWK PDGH XVHG RUFDXVHG WR EH PDGHRU XVHG
IDOVHUHFRUGVDQGRUVWDWHPHQWVPDWHULDOWRDQREOLJDWLRQWRSD\RU
WUDQVPLW PRQH\ RU SURSHUW\ WR WKH 6WDWH RI &DOLIRUQLD DQGRU
NQRZLQJO\ RU DFWLQJ LQ GHOLEHUDWH LJQRUDQFH DQGRU ZLWK UHFNOHVV
GLVUHJDUGRIWKHWUXWKPDGHXVHGRUFDXVHGWREHPDGHRUXVHGIDOVH
UHFRUGV DQGRU VWDWHPHQWV WR FRQFHDO DYRLG RU GHFUHDVH DQ
REOLJDWLRQ WR SD\ RU WUDQVPLW PRQH\ RU SURSHUW\ WR WKH 6WDWH RI
&DOLIRUQLD7KHVHIDOVHVWDWHPHQWVDQGIDOVHUHFRUGVLQFOXGHYDULRXV
UHSRUWV WR WKH 0RQLWRU DQG WKH ,5* $VVHUWLRQV FRQWDLQLQJ
FHUWLILFDWLRQVWKDW&KDVHKDGFRPSOLHGZLWKWKH6HUYLFLQJ6WDQGDUGV
DQG&RQVXPHU5HOLHI5HTXLUHPHQWVRIWKH&RQVHQW-XGJPHQW

(J6$&ˆ &RXQW,,, %HFDXVH5HODWRU¶V6WDWHODZFODLPVUHVWRQWKHVDPHDOOHJHGO\IDOVH

DOOHJDWLRQVDVWKH)HGHUDO)&$FODLPGLVPLVVHGDERYHWKH6WDWHODZFODLPVZLOODOVREH

GLVPLVVHG



7KH&RPSODLQWFLWHVWRWKH1HZ0H[LFR0HGLFDLG)DOVH&ODLPV$FW106WDW$QQ†
EXWWKH&RXUWLQWHUSUHWVWKH&RPSODLQWDVLQWHQGLQJWRUHIHUHQFHWKH1HZ0H[LFR)UDXG
$JDLQVW7D[SD\HUV$FW


Case 1:15-cv-00293-LTS-JCF
Case Document 118
1:14-cv-01047-RMC Document 200-10 Filed
Filed 06/29/17
12/22/16 Page
Page 2322
22 of of 23

' /HDYHWR$PHQG

,Q2SSRVLWLRQ5HODWRUDVNVIRUOHDYHWRILOHDWKLUGDPHQGHGFRPSODLQWVKRXOGWKH

&RXUWILQGPHULWLQWKH0RWLRQWR'LVPLVV³>7@KH'&&LUFXLWKDVFDXWLRQHGWKDWµIDLOXUHWR

SOHDGIUDXGZLWKSDUWLFXODULW\GRHVQRWVXSSRUWDGLVPLVVDOZLWKSUHMXGLFHWRWKHFRQWUDU\

OHDYHWRDPHQGLVDOPRVWDOZD\VDOORZHGWRFXUHGHILFLHQFLHVLQSOHDGLQJIUDXG¶´3HQFKHQJ6LY

/DRJDL5HVHDUFK)RXQG1R:/DW  ''&$XJ 

TXRWLQJ)LUHVWRQHY)LUHVWRQH)G '&&LU 5HODWRUKDVDOUHDG\ILOHG

WZRDPHQGHGFRPSODLQWV+HLQWLPDWHVQRIDFWVWKDWFRXOGUHVFXHKLV)&$DOOHJDWLRQVUHODWLQJWR

WKH1DWLRQDO0RUWJDJH6HWWOHPHQWDQGWKHXQGLVSXWHGIDFWVVKRZWKDWDQDPHQGPHQWZRXOGEH

IXWLOH7KH&RXUWZLOOGLVPLVV5HODWRU¶VFODLPVRI&KDVHQRQFRPSOLDQFHZLWKWKH1DWLRQDO

0RUWJDJH6HWWOHPHQWZLWKSUHMXGLFHDQGKLVFODLPVRI&KDVHQRQFRPSOLDQFHZLWK+$03ZLWKRXW

SUHMXGLFH

,9&21&/86,21

)RUWKHUHDVRQVVHWIRUWKDERYH'HIHQGDQW¶V0RWLRQWR'LVPLVV'NWZLOOEH

JUDQWHG&RXQWV,DQG,,,WKURXJK;;,,,ZLOOEHGLVPLVVHGZLWKSUHMXGLFH&RXQW,,ZLOOEH

GLVPLVVHGZLWKRXWSUHMXGLFH$PHPRULDOL]LQJ2UGHUDFFRPSDQLHVWKLV2SLQLRQ

'DWH'HFHPEHU    V
       526(0$5<0&2//<(5
       8QLWHG6WDWHV'LVWULFW-XGJH



You might also like