James v. Get Fresh Produce Inc. et al, No. 1:2018cv04788 - Document 23 (N.D. Ill. 2018)

Court Description: MEMORANDUM Opinion and Order signed by the Honorable Virginia M. Kendall on 11/28/2018. The Court grants in part and denies in part Get Fresh's Motion to Dismiss 10 . The Motion is denied with respect to the religious-accommodation claim. Howe ver, the Motion is granted with respect to James's claims of race discrimination, harassment, and retaliation under Title VII and his Section 1981 claim. Those claims are dismissed without prejudice. To the extent James can cure the deficiencies highlighted above, he shall have until December 20, 2018 to amend his complaint consistent with this opinion. Mailed notice(lk, )
Download PDF
James v. Get Fresh Produce Inc. et al Doc. 23 ,1 7+( 81,7(' 67$7(6 ',675,&7 &2857 )25 7+( 1257+(51 ',675,&7 2) ,//,12,6 ($67(51 ',9,6,21 521$/' ( -$0(6 3ODLQWLII Y *(7 )5(6+ 352'8&( ,1& 3(7(5 6,.256., DQG 0(/,66$ $1=21$ 'HIHQGDQWV 1R & +RQ 9LUJLQLD 0 .HQGDOO 0(025$1'80 23,1,21 $1' 25'(5 3UR VH 3ODLQWLII 5RQDOG -DPHV EULQJV WKLV VXLW DOOHJLQJ GLVFULPLQDWLRQ XQGHU 7LWOH 9,, RI WKH &LYLO 5LJKWV $FW RI 8 6 & H HW VHT DQG 8 6 & ³6HFWLRQ ´ DJDLQVW KLV FXUUHQW HPSOR\HU 'HIHQGDQW *HW )UHVK 3URGXFH ,QF ³*HW )UHVK´ DQG WZR *HW )UHVK HPSOR\HHV²'HIHQGDQWV 3HWHU 6LNRUVNL DQG 0HOLVVD $Q]RQD 6SHFLILFDOO\ WKLV FDVH UHYROYHV DURXQG WKH 'HIHQGDQWV¶ IDLOXUH WR DOORZ -DPHV WR WDNH YDFDWLRQ IURP ZRUN RQ WZR GD\V RI VLJQLILFDQFH WR KLP DV D SUDFWLFLQJ -HKRYDK¶V :LWQHVV $V VXFK -DPHV DOOHJHV WKDW 'HIHQGDQWV IDLOHG WR DFFRPPRGDWH KLV SUDFWLFHV DQG RWKHUZLVH GLVFULPLQDWHG KDUDVVHG DQG UHWDOLDWHG DJDLQVW KLP 6HH 'NW &XUUHQWO\ EHIRUH WKH &RXUW LV *HW )UHVK¶V 0RWLRQ WR 'LVPLVV 'NW )RU WKH UHDVRQV VHW IRUWK EHORZ WKH 0RWLRQ LV JUDQWHG LQ SDUW DQG GHQLHG LQ SDUW 7R WKH H[WHQW WKDW -DPHV FDQ FXUH WKH GHILFLHQFLHV H[SODLQHG EHORZ KH PD\ ILOH DQ DPHQGHG FRPSODLQW E\ 'HFHPEHU %$&.*5281' -DPHV ILOHG D SDJH &RPSODLQW DQG DQ SDJH 5HVSRQVH %ULHI ERWK RI ZKLFK FRQWDLQ KDQGZULWWHQ DOOHJDWLRQV ZLWK GRFXPHQWV UDQGRPO\ LQWHUVSHUVHG WKURXJKRXW VRPHWLPHV ZLWKRXW DQ\ DSSDUHQW RUJDQL]DWLRQ PDNLQJ -DPHV¶V DOOHJDWLRQV DQG DUJXPHQWV GLIILFXOW WR FRPSUHKHQG 6HH Dockets.Justia.com 'NWV &RQVWUXLQJ -DPHV¶V SUR VH DOOHJDWLRQV OLEHUDOO\ VHH 3DUNHU Y )RXU 6HDVRQV +RWHOV /WG ) G WK &LU DQG LQFRUSRUDWLQJ DQ\ IDFWV FRQVLVWHQW ZLWK WKH DOOHJDWLRQV LQ WKH &RPSODLQW DV VHW IRUWK LQ KLV UHVSRQVH EULHI 6PLWK Y 'DUW ) G WK &LU ³>)@DFWV DOOHJHG E\ D SODLQWLII LQ D EULHI LQ RSSRVLWLRQ WR D PRWLRQ WR GLVPLVV PD\ EH FRQVLGHUHG ZKHQ HYDOXDWLQJ WKH VXIILFLHQF\ RI D FRPSODLQW VR ORQJ DV WKH\ DUH FRQVLVWHQW RI WKH DOOHJDWLRQV LQ WKH FRPSODLQW ´ TXRWDWLRQ DQG FLWDWLRQ RPLWWHG WKH &RXUW XQGHUVWDQGV WKH UHOHYDQW IDFWXDO DOOHJDWLRQV WR EH DV IROORZV -DPHV EHJDQ ZRUNLQJ DW *HW )UHVK LQ DQG KH LV SUHVHQWO\ HPSOR\HG E\ WKH FRPSDQ\ DV D 'HOLYHU\ 'ULYHU GHOLYHULQJ SURGXFH WR UHVWDXUDQWV DQG VFKRROV LQ &KLFDJR 'NW DW 'ULYHUV DUH UHTXLUHG WR ZRUN VL[ GD\V SHU ZHHN -DPHV KDV 6XQGD\V RII ,G DW 'NW DW -DPHV LV D -HKRYDK¶V :LWQHVV +H LV DOVR %ODFN $V D -HKRYDK¶V :LWQHVV HYHU\ \HDU -DPHV SDUWLFLSDWHV LQ UHOLJLRXV PHHWLQJV DQG FRQYHQWLRQV +H DOVR SDUWLFLSDWHV LQ GRRU WR GRRU PLQLVWU\ RQ D UHJXODU EDVLV 'NW DW $V UHOHYDQW WR WKLV FDVH -DPHV LV D XQLRQ HPSOR\HH DQG 'HOLYHU\ 'ULYHU YDFDWLRQ UHTXHVWV DUH JRYHUQHG E\ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW ³&%$´ XQGHU ZKLFK GULYHUV ZHUH SHUPLWWHG WR UHTXHVW ³WZR FRQVHFXWLYH ZHHNV RI YDFDWLRQ DQG ILYH LQGLYLGXDOO\ VFKHGXOHG GD\V´ SULRU WR 'HFHPEHU IRU WKH IROORZLQJ \HDU ,G DW 2Q 1RYHPEHU -DPHV ILOOHG RXW D YDFDWLRQ UHTXHVW IRUP IRU KH UHWXUQHG WKH IRUP RQ 1RYHPEHU WR $Q]RQD D VXSHUYLVRU ,G DW ± 'NW DW +H UHTXHVWHG WKH IROORZLQJ YDFDWLRQ GD\V -XO\ $XJXVW 0DUFK DQG 6HSWHPEHU ²LQ WKDW RUGHU 'NW DW ± -DPHV UHFHLYHG D UHVSRQVH RQ 1RYHPEHU ZKLFK KH DOOHJHV ZDV IURP $Q]RQD DSSURYLQJ KLV UHTXHVW IRU YDFDWLRQ RQ -XO\ ± DV ZHOO DV RQ $XJXVW DQG 6HH 'NW DW :LWK UHJDUG WR 0DUFK KRZHYHU ZKLFK -DPHV QRWHV 7KH &%$ KDV QRW EHHQ SURYLGHG WR WKH &RXUW DOWKRXJK LW LV UHIHUHQFHG LQ VRPH RI WKH PDWHULDOV -DPHV VXEPLWWHG DORQJ ZLWK KLV &RPSODLQW DQG UHVSRQVH EULHI LV WKH ³GHDWK RI &KULVW´ IRU -HKRYDK¶V :LWQHVVHV KH ZDV WROG WKDW KH QHHGHG WR ³ZDLW XQWLO WKH HQG RI WKH ELG SURFHVV WR UHTXHVW WKLV GDWH ´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³.HYLQ DQG 0HJDQ´ UHJDUGLQJ WKH GHQLDO RI WKH 0DUFK YDFDWLRQ GD\ 'NW DW -DPHV DOOHJHV WKDW 0HJDQ LQVWUXFWHG KLP WR ³WDNH DQRWKHU GD\ RII ´ WR ZKLFK KH DOOHJHGO\ UHVSRQGHG ³LWV >VLF@ WKH GHDWK RI &KULVW KH GLHG RQ WKDW GD\´ EXW ³VKH GLG QRW FDUH ´ ,G VHH DOVR 'NW DW -DPHV DWWHQGHG ³PRUH PHHWLQJV´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¶V :LWQHVV P\ UDFH %ODFN DQG LQ UHWDOLDWLRQ IRU HQJDJLQJ LQ SURWHFWHG DFWLYLW\ LQ YLRODWLRQ RI 7LWOH 9,, RI WKH &LYLO 5LJKWV $FW RI DV DPHQGHG 'NW DW &KDUJH RI 'LVFULPLQDWLRQ 7KHQ -DPHV ZDV DVNHG WR ZRUN RQ ³6XQGD\ 'HF>HPEHU@ VR HYHU\RQH FDQ EH RII 'HF>HPEHU@ ´ ,G DW VHH LG DW ³,Q 'HFHPEHU WKH GULYHU ZHUH WROG WR ZRUN 6XQGD\ VR WKH QLJKW GULYHU FDQ EH RII IRU &KULVWPDV RQ 0RQGD\ ´ -DPHV YLHZHG WKLV LQFLGHQW DV GLVFULPLQDWRU\ DOOHJLQJ *HW )UHVK DOORZHG WKH ³QLJKW GULYHU FDQ FHOHEUDWH WKH %LUWK RI &KULVW %XW >'HIHQGDQWV@ ZLOO QRW OHW >-DPHV@ FHOHEUDWH 0DUFK IRU WKH 'HDWK RI &KULVW ´ DW 6LQFH KH W\SLFDOO\ KDV 6XQGD\V RII VR KH ZURWH D OHWWHU H[SODLQLQJ ,G WKDW KH JRHV WR PHHWLQJV DQG PLQLVWU\ RQ 6XQGD\ PRUQLQJV ,G $W VRPH SRLQW SRVVLEO\ UHODWHG WR WKLV VDPH LQFLGHQW 6LNRUVNL DVNHG -DPHV WR ³ZULWH D OHWWHU´ H[SODLQLQJ ZKDW KH GRHV ³RQ 6XQGD\ KLV GD\ RII ´ WR ZKLFK KH UHVSRQGHG WKDW KH ³>JRHV@ GRRU WR GRRU LQ WKH PRUQLQJ 7KHQ >KH JRHV@ WR WKH .LQJGRP +DOO WR ZRUVKLS ´ ,G DW /DWHU RQ )HEUXDU\ -DPHV VXEPLWWHG D ³7LPH 2II 5HTXHVW )RUP´ VHHNLQJ WR WDNH YDFDWLRQ RQ -XQH DQG VR WKDW KH FRXOG DWWHQG D ³UHOLJLRXV PHHWLQJ ´ ,G DW $FFRUGLQJ WR WKH IRUP RQ 0DUFK $Q]RQD DSSURYHG WKH -XQH UHTXHVW EXW GHQLHG WKH UHTXHVW IRU -XQH EHFDXVH ³>W@KLV GDWH KDV DOUHDG\ EHHQ FORVHG ´ ,G ,Q D OHWWHU GDWHG 0DUFK 6LNRUVNL HQFRXUDJHG -DPHV WR UHTXHVW DGGLWLRQDO GD\V RII² QRZ RXWVLGH RI WKH YDFDWLRQ GD\ ELGGLQJ SURFHVV SUHVFULEHG E\ WKH &%$ ,G DW 'NW DW ,Q WKLV OHWWHU 6LNRUVNL LQIRUPHG -DPHV WKDW 0DUFK ZDV DYDLODEOH ³:H XQGHUVWDQG WKDW 0DUFK LV DOVR DQ LPSRUWDQW GD\ IRU \RX EDVHG RQ \RXU UHOLJLRXV SUDFWLFHV 7KDW GD\ LV VWLOO DYDLODEOH DQG ZH XUJH \RX WR DFW TXLFNO\ WR UHVHUYH LW ´ 'NW DW 7KH OHWWHU DOVR LQGLFDWHG WKDW -DPHV¶V UHTXHVW IRU YDFDWLRQ RQ -XQH ZDV DSSURYHG WKH UHTXHVW IRU D -XQH YDFDWLRQ GD\ UHPDLQHG GHQLHG $SSDUHQWO\ DURXQG WKLV VDPH WLPH 6LNRUNVL DOVR DVNHG -DPHV WR VLJQ ³D ,G SDSHU ´ ZKLFK DSSHDUV WR KDYH EHHQ D UHOLJLRXV DFFRPPRGDWLRQ UHTXHVW IRUP WR ³WU\ WR LQWLPLGDWH KLP ´ ,G DW ± 6LNRUVNL GLG QRW DVN RWKHU HPSOR\HHV WR VLJQ DFFRPPRGDWLRQ IRUPV -DPHV GLG QRW VLJQ WKH IRUP ,G DW %HFDXVH RI WKH ODFN RI UHOLJLRXV DFFRPPRGDWLRQ -DPHV IHOW DV LI KLV UHOLJLRXV EHOLHIV ZHUH QRW UHVSHFWHG +H DOVR IHOW SK\VLFDOO\ LOO KH UHSRUWHG KLJK EORRG SUHVVXUH DQG VFDUHG WR JR WR ZRUN EHFDXVH KH IHDUHG WKDW KH ZRXOG KDYH WR HQGXUH IXUWKHU LQWLPLGDWLQJ PHHWLQJV ,G DW ,Q DQRWKHU OHWWHU GDWHG 0DUFK 6LNRUVNL ZURWH ³>D@V DQ DGGLWLRQDO DFFRPPRGDWLRQ WR \RX ZH ZLOO VFKHGXOH 0DUFK DV D GD\ RII IRU \RX´ HYHQ WKRXJK -DPHV IDLOHG WR FRPSO\ ZLWK WKH XQLRQ QHJRWLDWHG YDFDWLRQ VFKHGXOLQJ SURFHGXUHV ,G DW 7KH OHWWHU FRQWDLQV WKH IROORZLQJ KDQGZULWWHQ QRWH ³0DUFK *HW )UHVK FDOO PH DW DP WHOO PH WR FRPH WR ZRUN ´ ,G $OVR RQ 0DUFK 6LNRUVNL DSSHDUV WR KDYH DSSURYHG -DPHV¶V UHTXHVW IRU D YDFDWLRQ GD\ RQ -XQH FRPPHQWLQJ RQ -DPHV¶V )HEUXDU\ 7LPH 2II 5HTXHVW )RUP WKDW ³ERWK GD\V QRZ DSSURYHG 6ORW RSHQHG XS GXH WR FKDQJH E\ GULYHU UHVHUYLQJ -XQH ´ 'NW DW 2Q $SULO WKH ((2& LVVXHG -DPHV D 'LVPLVVDO DQG 1RWLFH RI 5LJKWV ,G DW -DPHV WLPHO\ ILOHG D &RPSODLQW LQ IHGHUDO FRXUW XVLQJ WKH VL[ SDJH ³&RPSODLQW RI (PSOR\PHQW 'LVFULPLQDWLRQ´ SURYLGHG E\ WKH 1RUWKHUQ 'LVWULFW RI ,OOLQRLV -DPHV FKHFNHG WKH ER[HV VWDWLQJ WKH 'HIHQGDQWV GLVFULPLQDWHG DJDLQVW KLP RQ DFFRXQW RI KLV ³5DFH 7LWOH 9,, RI WKH &LYLO 5LJKWV $FW RI DQG 8 6 & ´ DQG ³5HOLJLRQ 7LWOH 9,, RI WKH &LYLO 5LJKWV $FW RI ´ 6HH LG DW $V WR KRZ 'HIHQGDQWV GLVFULPLQDWHG DJDLQVW KLP -DPHV LQGLFDWHG WKDW WKH\ ³IDLOHG WR UHDVRQDEO\ DFFRPPRGDWH WKH SODLQWLII¶V UHOLJLRQ´ DQG ³IDLOHG WR VWRS KDUDVVPHQW´ -DPHV DOVR KDQGZURWH WKDW WKH\ ³5HWDOLDWHG $FFRPPRGDWH 5HOLJLRXV 'D\V 0DUFK DQG -XQH ´ ,G DW ± 2XWVLGH RI WKHVH WZR VSHFLILF WLPH SHULRGV 0DUFK DQG -XQH -DPHV JHQHUDOO\ FRPSODLQV WKDW KH ZDV UHTXLUHG WR ZRUN RQ 6DWXUGD\V DQG KH FODLPV WKDW WKLV LV EDVHG RQ UDFLDO GLVFULPLQDWLRQ -DPHV SRLQWV WR RWKHU *HW )UHVK HPSOR\HHV²SULPDULO\ +LVSDQLF HPSOR\HHV²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³WKH\ GRQ¶W VSHDN WR PH DQ\PRUH 7KH\ ORRN DW PH IXQQ\ 3LFN ZLWK PH WU\LQJ WR PDNH SUREOHPV´ SDUWLFXODUO\ ZLWK KLV )0/$ GD\V ZKLFK KH QHHGV IRU RWKHU UHDVRQV DOWKRXJK LW LV QRW HQWLUHO\ FOHDU KRZ $OVR ³WKH\ WROG PH , FDQQRW PLVV GD\¶V >VLF@ IRU FRXUW ´ 'NW DW ± $V UHOLHI -DPHV UHTXHVWV DQ RUGHU UHTXLULQJ 'HIHQGDQWV WR DFFRPPRGDWH KLV UHOLJLRQ VSHFLILFDOO\ E\ JUDQWLQJ KLP GD\V RII IRU PHHWLQJV DQG PLQLVWU\ -DPHV DOVR UHTXHVWV DQ RUGHU WKDW KLV ZRUN GD\V EH FRQILQHG WR 0RQGD\ WKURXJK )ULGD\ KH ZDQWV 6DWXUGD\V RII IRU PLQLVWU\ ,G )LQDOO\ -DPHV UHTXHVWV GDPDJHV /(*$/ 67$1'$5' $ 5XOH E PRWLRQ FKDOOHQJHV WKH OHJDO VXIILFLHQF\ RI WKH FRPSODLQW )RU SXUSRVHV RI 5XOH E PRWLRQ WKH &RXUW ³DFFHSW>V@ DV WUXH DOO RI WKH ZHOO SOHDGHG IDFWV LQ WKH FRPSODLQW DQG GUDZ DOO UHDVRQDEOH LQIHUHQFHV LQ IDYRU RI WKH SODLQWLII ´ &DOGHURQ 5DPLUH] Y 0F&DPHQW ) G WK &LU TXRWDWLRQ RPLWWHG 7R VXUYLYH D PRWLRQ WR GLVPLVV XQGHU 5XOH E D SODLQWLII¶V FRPSODLQW PXVW DOOHJH IDFWV ZKLFK ³µSODXVLEO\ VXJJHVW WKDW WKH SODLQWLII KDV D ULJKW WR UHOLHI UDLVLQJ WKDW SRVVLELOLW\ DERYH D VSHFXODWLYH OHYHO ¶´ +LJKZD\ $XWK ,QF ) G WK &LU TXRWLQJ &RFKUDQ Y ,OO 6WDWH 7ROO ((2& Y &RQFHQWUD +HDOWK 6HUYV ) G WK &LU ³6SHFLILF IDFWV DUH XQQHFHVVDU\ EXW WKH FRPSODLQW PXVW JLYH WKH GHIHQGDQW IDLU QRWLFH RI ZKDW WKH FODLP LV DQG WKH JURXQGV XSRQ ZKLFK LW UHVWV ´ 2IILFH RI WKH &KLHI -XGJH RI WKH &LUFXLW &RXUW RI &RRN &W\ +XUL Y ) G WK &LU ³7KUHDGEDUH UHFLWDOV RI WKH HOHPHQWV RI D FDXVH RI DFWLRQ VXSSRUWHG E\ PHUH FRQFOXVRU\ VWDWHPHQWV GR QRW VXIILFH ´ $VKFURIW Y ,TEDO 8 6 7KH &RXUW UHDGV WKH FRPSODLQW DQG DVVHVVHV LWV SODXVLELOLW\ DV D ZKROH 6HH $WNLQV Y &LW\ RI &KLFDJR ) G WK &LU ,Q HYDOXDWLQJ D SUR VH FRPSODLQW WKH &RXUW DSSOLHV D OHVV VWULQJHQW VWDQGDUG WKDQ LW DSSOLHV WR IRUPDO SOHDGLQJV GUDIWHG E\ ODZ\HUV 6PLWK ) G DW %XW WKH &RXUW QHHG QRW LJQRUH IDFWV VHW IRUWK LQ WKH FRPSODLQW WKDW XQGHUPLQH WKH SODLQWLII¶V FODLP QRU LV WKH &RXUW UHTXLUHG WR DFFHSW WKH SODLQWLII¶V OHJDO FRQFOXVLRQV -RKQVRQ Y 7KRPSVRQ 6PLWK ) 6XSS G 1 ' ,OO ',6&866,21 *HW )UHVK PRYHV WR GLVPLVV RQ WZR JURXQGV QDPHO\ WKDW -DPHV¶V FODLPV RI UDFLDO GLVFULPLQDWLRQ KDUDVVPHQW DQG UHWDOLDWLRQ DUH LQVXIILFLHQWO\ SOHG DQG WKDW KLV FODLPV ZHUH QRW SURSHUO\ H[KDXVWHG 6HH 'NW $FFRUGLQJO\ *HW )UHVK GRHV QRW DSSHDU WR FKDOOHQJH WKH VXEVWDQWLYH PHULWV RI -DPHV¶V UHOLJLRXV DFFRPPRGDWLRQ FODLP , 7LWOH 9,, &ODLPV 7LWOH 9,, PDNHV LW XQODZIXO IRU DQ HPSOR\HU ³WR IDLO RU UHIXVH WR KLUH RU WR GLVFKDUJH DQ\ LQGLYLGXDO RU RWKHUZLVH WR GLVFULPLQDWH DJDLQVW DQ\ LQGLYLGXDO ZLWK UHVSHFW WR KLV FRPSHQVDWLRQ WHUPV FRQGLWLRQV RU SULYLOHJHV RI HPSOR\PHQW EHFDXVH RI VXFK LQGLYLGXDO¶V UDFH FRORU UHOLJLRQ VH[ RU QDWLRQDO RULJLQ ´ 8 6 & $ H D ³>$@ SODLQWLII DOOHJLQJ HPSOR\PHQW GLVFULPLQDWLRQ XQGHU 7LWOH 9,, PD\ DOOHJH WKHVH FODLPV TXLWH JHQHUDOO\ ´ 7DPD\R Y %ODJRMHYLFK ) G WK &LU ³$ FRPSODLQW QHHG QRW µDOOHJH DOO RU DQ\ RI WKH IDFWV ORJLFDOO\ HQWDLOHG E\ WKH FODLP ¶ DQG LW FHUWDLQO\ QHHG QRW LQFOXGH HYLGHQFH ´ Y 6FKPLGW ,G TXRWLQJ %HQQHWW ) G WK &LU (YHQ DIWHU 7ZRPEO\ DQG GLVFULPLQDWLRQ XQGHU 7LWOH 9,, ,TEDO LW GRHV QRW WDNH PXFK WR VWDWH D FODLP IRU HPSOR\PHQW ( J 7DPD\R ) G DW ³>,@Q RUGHU WR SUHYHQW GLVPLVVDO XQGHU 5XOH E D FRPSODLQW DOOHJLQJ VH[ GLVFULPLQDWLRQ QHHG RQO\ DYHU WKDW WKH HPSOR\HU LQVWLWXWHG D VSHFLILHG DGYHUVH HPSOR\PHQW DFWLRQ DJDLQVW WKH SODLQWLII RQ WKH EDVLV RI KHU VH[ ´ VHH DOVR &RQFHQWUD +HDOWK 6HUYV ) G DW ³>$@ SODLQWLII DOOHJLQJ HPSOR\PHQW GLVFULPLQDWLRQ RQ WKH EDVLV RI UDFH VH[ RU VRPH RWKHU IDFWRU JRYHUQHG E\ 8 6 & H PD\ DOOHJH WKH GHIHQGDQW¶V LQWHQW TXLWH JHQHUDOO\ , ZDV WXUQHG GRZQ IRU D MRE EHFDXVH RI P\ UDFH LV DOO D FRPSODLQW KDV WR VD\ ´ TXRWDWLRQ DQG FLWDWLRQ RPLWWHG .ROXSD Y 5RVHOOH 3DUN 'LVW ) G WK &LU KROGLQJ WKDW D UHOLJLRXV GLVFULPLQDWLRQ SODLQWLII QHHG RQO\ VD\ WKDW WKH HPSOR\HU ³K>HOG@ WKH ZRUNHU¶V UHOLJLRQ DJDLQVW KLP´ ³,Q WKHVH W\SHV RI FDVHV WKH FRPSODLQW PHUHO\ QHHGV WR JLYH WKH GHIHQGDQW VXIILFLHQW QRWLFH WR HQDEOH KLP WR EHJLQ WR LQYHVWLJDWH DQG SUHSDUH D GHIHQVH ´ 7DPD\R ) G DW VHH DOVR 6DPRYVN\ Y 1RUGVWURP ,QF ) $SS¶[ WK &LU ³(PSOR\HUV DUH IDPLOLDU ZLWK GLVFULPLQDWLRQ FODLPV DQG NQRZ KRZ WR LQYHVWLJDWH WKHP VR OLWWOH LQIRUPDWLRQ LV UHTXLUHG WR SXW WKH HPSOR\HU RQ QRWLFH RI WKHVH FODLPV ´ &DUOVRQ Y &6; 7UDQVS ,QF ) G WK &LU $ ([KDXVWLRQ $V DQ LQLWLDO PDWWHU EHIRUH OLWLJDWLQJ DQ XQODZIXO HPSOR\PHQW SUDFWLFH XQGHU 7LWOH 9,, DQ HPSOR\HH PXVW ILOH D WLPHO\ FKDUJH RI GLVFULPLQDWLRQ ZLWK WKH ((2& 6HH 8 6 & H± H 6WHSQH\ Y 1DSHUYLOOH 6FK 'LVW ) G WK &LU 7KLV UHTXLUHPHQW ³JLYHV WKH HPSOR\HU VRPH ZDUQLQJ RI WKH FRQGXFW DERXW ZKLFK WKH HPSOR\HH LV DJJULHYHG DQG DIIRUGV WKH ((2& DQG WKH HPSOR\HU DQ RSSRUWXQLW\ WR DWWHPSW FRQFLOLDWLRQ ZLWKRXW UHVRUW WR WKH FRXUWV ´ (]HOO Y 3RWWHU ) G WK &LU FLWDWLRQ RPLWWHG -DPHV KDV ILOHG WKH QHFHVVDU\ &KDUJH EXW *HW )UHVK ILUVW DUJXHV WKDW -DPHV¶V DOOHJDWLRQV UHJDUGLQJ WKH GHQLDO RI YDFDWLRQ GD\V RQ 0DUFK DQG -XQH ZHUH QRW LQFOXGHG LQ WKH &KDUJH VSHFLILFDOO\ DQG WKHUHIRUH KDYH QRW EHHQ SURSHUO\ H[KDXVWHG 6HH 'NW DW ³$ SODLQWLII¶V IDLOXUH WR H[KDXVW DGPLQLVWUDWLYH UHPHGLHV LV DQ DIILUPDWLYH GHIHQVH ´ 6DODV Y :LVF 'HS¶W RI &RUU ) G WK &LU VHH DOVR 6WXDUW Y /RFDO ,QW¶O %URWKHUKRRG RI 7HDPVWHUV ) G WK &LU ³$ SODLQWLII LV QRW UHTXLUHG WR QHJDWH DQ DIILUPDWLYH GHIHQVH LQ KLV RU KHU FRPSODLQW> @´ ³$IILUPDWLYH GHIHQVHV FDQQRW IRUP WKH EDVLV WR GLVPLVV XQOHVV WKH SODLQWLII¶V FRPSODLQW SOHDGV WKH SODLQWLII RXW RI FRXUW ´ *UDKDP Y 8QLWHG 3DUFHO 6HUY ) 6XSS G 1 ' ,OO FLWLQJ 7UHJHQ]D Y *UHDW $P &RPPF¶QV &R ) G ± WK &LU VHH DOVR 8QLWHG 6WDWHV Y /HZLV ) G WK &LU FODLP PD\ EH GLVPLVVHG DV XQH[KDXVWHG DW GLVPLVVDO VWDJH LI ³WKH DOOHJDWLRQV RI WKH FRPSODLQW VHW IRUWK HYHU\WKLQJ QHFHVVDU\ WR VDWLVI\ WKH DIILUPDWLYH GHIHQVH´ -DPHV¶V &KDUJH JHQHUDOO\ DOOHJHV WKDW KH ZDV GHQLHG D UHOLJLRXV DFFRPPRGDWLRQ DQG ³VXEVHTXHQWO\´ VXEMHFWHG WR KDUDVVPHQW DQG GLIIHUHQW WHUPV RI HPSOR\PHQW LQFOXGLQJ IXUWKHU GHQLDOV RI YDFDWLRQ GD\V IRU UHOLJLRXV HYHQWV 6HH 'NW DW ³7KH SURSHU VFRSH RI D MXGLFLDO SURFHHGLQJ IROORZLQJ DQ ((2& FKDUJH µLV OLPLWHG E\ WKH QDWXUH RI WKH FKDUJHV ILOHG ZLWK WKH ((2& ¶´ +RSNLQV Y %G RI (GXF RI &LW\ RI &KLFDJR ) 6XSS G 1 ' ,OO TXRWLQJ 5XVK Y 0F'RQDOG¶V &RUS ) G WK &LU VHH DOVR 3HWHUV Y 5HQDLVVDQFH +RWHO 2SHUDWLQJ &R ) G WK &LU +RZHYHU WKHUH LV DQ H[FHSWLRQ WR WKLV UXOH IRU FODLPV WKDW DUH ³UHDVRQDEO\ UHODWHG WR RQH RI WKH ((2& FKDUJHV DQG FDQ EH H[SHFWHG WR GHYHORS IURP DQ LQYHVWLJDWLRQ LQWR WKH FKDUJHV DFWXDOO\ UDLVHG ´ *UHHQ Y 1DW¶O 6WHHO &RUS 0LGZHVW 'LY ) G WK &LU DFFRUG 0RRUH Y 9LWDO 3URG ,QF ) G ± WK &LU ³>,@I FHUWDLQ FODLPV DUH QRW LQFOXGHG LQ DQ ((2& FKDUJH D SODLQWLII FDQ VWLOO EULQJ WKHP LI WKH\ DUH µOLNH RU UHDVRQDEO\ UHODWHG WR WKH DOOHJDWLRQV RI WKH >((2&@ FKDUJH DQG JURZLQJ RXW RI VXFK DOOHJDWLRQV ¶´ FLWDWLRQ RPLWWHG 7R EH ³UHDVRQDEO\ UHODWHG ´ WKH ((2& FKDUJH DQG WKH UHOHYDQW FODLP PXVW LQYROYH WKH VDPH FRQGXFW DQG LPSOLFDWH WKH VDPH LQGLYLGXDOV +XUL ) G DW FLWLQJ 0RRUH ) G DW DFFRUG &KHHN Y : 6 /LIH ,QV &R ) G WK &LU ,I WKH\ DUH QRW UHODWHG ³>H@DFK LQFLGHQW RI GLVFULPLQDWLRQ DQG HDFK UHWDOLDWRU\ DGYHUVH HPSOR\PHQW GHFLVLRQ FRQVWLWXWHV D VHSDUDWH DFWLRQDEOH ³XQODZIXO HPSOR\PHQW SUDFWLFH´ ZLWKLQ WKH PHDQLQJ RI WKH FKDUJH ILOLQJ UHTXLUHPHQW RI 7LWOH 9,, 1DW¶O 5 5 3DVVHQJHU &RUS Y 0RUJDQ 8 6 7KH UHTXHVWV FRQFHUQLQJ 0DUFK DQG -XQH DUH SURSHUO\ ZLWKLQ WKH VFRSH RI WKH &KDUJH )LUVW WKHUH FDQ EH QR UHDO TXHVWLRQ DV WR ZKHWKHU WKH GHQLDO RI WKH 0DUFK YDFDWLRQ GD\ LV HQFRPSDVVHG E\ WKH &KDUJH 7KH &KDUJH ZDV ILOHG ZLWKLQ RQH PRQWK RI WKH LQLWLDO GHQLDO IRU WKLV GD\ 7KH IDFW WKDW WKH &KDUJH GRHV QRW VSHFLILFDOO\ LGHQWLI\ WKDW GDWH LV QRW IDWDO ³$GPLQLVWUDWLYH FKDUJHV RI GLVFULPLQDWLRQ ZKHWKHU ILOHG ZLWK D VWDWH RU IHGHUDO DJHQF\ DUH WR EH FRQVWUXHG OLEHUDOO\ E\ IHGHUDO FRXUWV WR DFFRPPRGDWH SUR VH ILOHUV DQG WR IXUWKHU WKH UHPHGLDO SXUSRVHV RI DQWL GLVFULPLQDWLRQ VWDWXWHV ´ (]HOO ) G DW VHH DOVR +XUL ) G DW D 7LWOH 9,, SODLQWLII QHHG QRW LQFOXGH LQ KLV FKDUJH HYHU\ IDFW WKDW LQGLYLGXDOO\ RU LQ FRPELQDWLRQ IRUPV WKH EDVLV RI D VXEVHTXHQW ODZVXLW¶V FODLPV $V WR WKH -XQH YDFDWLRQ GD\ HYHQ WKRXJK WKH &RPSODLQW 5HVSRQVH %ULHI DQG DVVRFLDWHG GRFXPHQWV LQGLFDWH WKDW WKH &KDUJH ZDV ILOHG VRPH WZR RU WKUHH PRQWKV EHIRUH -DPHV HYHQ LQLWLDWHG WKH UHTXHVW IRU WKLV GD\ RII LW DSSHDUV WR EH UHDVRQDEO\ UHODWHG WR WKH LQLWLDO IDLOXUH WR DFFRPPRGDWH WKDW VHUYHG DV WKH EDVLV RI WKH &KDUJH EHFDXVH LW LQYROYHV WKH VDPH FRQGXFW GHQLDO RI D UHTXHVW IRU D GD\ RII IRU UHOLJLRXV UHDVRQV E\ WKH VDPH LQGLYLGXDOV VSHFLILFDOO\ 6LNRUVNL DQG $Q]RQD 6HH +XUL ) G DW ± )XUWKHU D GRFXPHQW -DPHV VXEPLWWHG LQ FRQQHFWLRQ ZLWK KLV UHVSRQVH EULHI ZKLFK DSSHDUV WR EH WKH VHFRQG SDJH RI D VXEPLVVLRQ E\ *HW )UHVK WR WKH ((2& HPSOR\HH 6HUJLR 0DOGRQDGR GLVFXVVHV -DPHV¶V UHTXHVW IRU WKH -XQH YDFDWLRQ GD\ 6HH 'NW DW $V VXFK WKH GRFXPHQWV VXEPLWWHG LQGLFDWH WKDW WKH -XQH UHTXHVW ZDV LQFOXGHG LQ WKH LQYHVWLJDWLRQ RI WKH &KDUJH 6HH *UHHQ ) G DW 7KH DGPLQLVWUDWLYH UHPHGLHV IRU -DPHV¶V FODLPV UHJDUGLQJ WKH DFFRPPRGDWLRQ UHTXHVWV IRU 0DUFK DQG -XQH KDYH EHHQ H[KDXVWHG +RZHYHU WKH &RXUW¶V UHYLHZ RI WKH &KDUJH LQGLFDWHV WKDW -DPHV¶V FODLP RI UDFLDO GLVFULPLQDWLRQ RQ DFFRXQW RI JHQHUDO GLIIHUHQWLDO WUHDWPHQW DQG XQUHODWHG WR KLV VSHFLILF YDFDWLRQ GD\ UHTXHVWV ²WKDW LV WKDW WZR +LVSDQLF GULYHUV KDYH VFKHGXOHV ZKHUH WKH\ GR QRW KDYH WR ZRUN VL[ IXOO GD\V SHU ZHHN WKDW &DXFDVLDQ GULYHUV JHQHUDOO\ FDQ JHW 6DWXUGD\V RII ZLWKRXW PDNLQJ D IRUPDO UHTXHVW DQG WKDW &DXFDVLDQ DQG RU +LVSDQLF GULYHUV JHW EHWWHU WUXFNV EHWWHU URXWHV DQG IHZHU GHOLYHULHV²LV QRW FRQWDLQHG ZLWKLQ WKH VFRSH RI WKH &KDUJH RU UHDVRQDEO\ UHODWHG WR WKRVH FODLPV ZLWKLQ WKH &KDUJH 6HH 3HWHUV ) G DW DIILUPLQJ GLVPLVVDO RI UHWDOLDWLRQ FODLP WKDW ZDV QRW OLNH RU UHDVRQDEO\ UHODWHG WR WKH GLVFULPLQDWLRQ FODLPV LQ SODLQWLII¶V ((2& FKDUJH 7KXV WR WKH H[WHQW WKDW WKLV SDUWLFXODU FODLP LV EURXJKW XQGHU 7LWOH 9,, -DPHV KDV IDLOHG WR H[KDXVW KLV DGPLQLVWUDWLYH UHPHGLHV DQG LW LV GLVPLVVHG ZLWKRXW SUHMXGLFH % 5DFH 'LVFULPLQDWLRQ 8QGHU 7LWOH 9,, 7R WKH H[WHQW WKDW -DPHV¶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¶V UHOLJLRQ IDLOHG WR VWRS KDUDVVPHQW DQG UHWDOLDWHG DJDLQVW KLP 'NW DW 7KDW LV WKH &RPSODLQW DQG 5HVSRQVH DV ZHOO DV WKH ((2& &KDUJH LQGLFDWH WKDW DOO WKUHH HYHQWV UHYROYH DURXQG UHOLJLRQ DV WKH KDUDVVPHQW DQG UHWDOLDWLRQ RQO\ RFFXUUHG ³VXEVHTXHQW´ WR -DPHV¶V UHTXHVW IRU D UHOLJLRXV DFFRPPRGDWLRQ ,Q DGGLWLRQ WKH &RPSODLQW DQG UHVSRQVH ODFN DOOHJDWLRQV WKDW *HW )UHVK DOORZHG QRQ %ODFN HPSOR\HHV WR WDNH YDFDWLRQ GD\V IRU UHOLJLRXV UHDVRQV RU WKDW WKH YDFDWLRQ GD\ SROLF\ ZDV RWKHUZLVH DSSOLHG LQ D UDFLDOO\ GLVFULPLQDWRU\ IDVKLRQ 7R EH VXUH WKH &RPSODLQW DQG 5HVSRQVH GLVFXVV WKH ³QLJKW GULYHU´ ZKR ZDV JLYHQ D 6XQGD\ RII WR FHOHEUDWH &KULVWPDV LQ EXW ERWK WKH &RPSODLQW DQG 5HVSRQVH DUH VLOHQW DV WR WKH QLJKW GULYHU¶V UDFH $IWHU FDUHIXO UHYLHZ RI WKH &RPSODLQW DQG 5HVSRQVH WKH UHOHYDQFH RI -DPHV¶V UDFH WR KLV 7LWOH 9,, GLVFULPLQDWLRQ FODLP LV OHVV WKDQ DSSDUHQW ,QVWHDG WKH HQWLUH IRFXV RI WKLV FODLP DSSHDUV WR EH RQ WKH GHQLDO RI D UHOLJLRXV DFFRPPRGDWLRQ QDPHO\ WZR GD\V RII IRU D KROLGD\ DQG UHOLJLRXV PHHWLQJ )XUWKHU WKLV GRHV QRW DSSHDU WR EH VXFK D FDVH ZKHUH -DPHV¶V UHOLJLRQ DQG UDFH DUH VR LQWHUWZLQHG DV WR EH LQGLVWLQJXLVKDEOH DQG WR WKHUHIRUH ³XQORFN WKH GRRUV RI GLVFRYHU\ RQ DOOHJDWLRQV RI UDFH GLVFULPLQDWLRQ ´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³SHUPHDWHG ZLWK GLVFULPLQDWRU\ LQWLPLGDWLRQ ULGLFXOH DQG LQVXOW ´ &RRSHU 6FKXW Y 9LVWHRQ $XWR 6\V ) G WK &LU 7R VWDWH D 7LWOH 9,, KRVWLOH ZRUN HQYLURQPHQW FODLP -DPHV PXVW DOOHJH ³ L WKDW >KLV@ ZRUN HQYLURQPHQW ZDV REMHFWLYHO\ DQG VXEMHFWLYHO\ RIIHQVLYH LL WKDW WKH KDUDVVPHQW ZDV EDVHG RQ >KLV@ UDFH LLL WKDW WKH KDUDVVPHQW ZDV SHUYDVLYH RU VHYHUH DQG LY WKDW D OHJDO EDVLV H[LVWV IRU KROGLQJ >'HIHQGDQWV@ OLDEOH ´ &DEOH Y )&$ 86 //& ) RI 1 ,OO 8QLY $SS¶[ WK &LU VHH DOVR &ROH Y %G RI 7UV ) G ± Q WK &LU VDPH ³7R ULVH WR WKH OHYHO RI D KRVWLOH ZRUN HQYLURQPHQW FRQGXFW PXVW EH VXIILFLHQWO\ VHYHUH RU SHUVXDVLYH WR DOWHU WKH FRQGLWLRQV RI HPSOR\PHQW VXFK WKDW LW FUHDWHV DQ DEXVLYH UHODWLRQVKLS ´ 6FUXJJV Y *DUVW 6HHG &R ) G WK &LU HPSKDVLV LQ RULJLQDO ,Q RUGHU WR GHPRQVWUDWH KDUDVVPHQW ³WKDW ULVHV WR WKH OHYHO RI D VWDWXWRU\ YLRODWLRQ WKH SODLQWLII PXVW SURYH WKDW KLV RU KHU ZRUN HQYLURQPHQW ZDV ERWK VXEMHFWLYHO\ DQG REMHFWLYHO\ RIIHQVLYH RQH WKDW D UHDVRQDEOH SHUVRQ ZRXOG ILQG KRVWLOH RU DEXVLYH DQG RQH WKDW WKH YLFWLP LQ IDFW GLG SHUFHLYH WR EH VR ´ &HUURV Y 6WHHO 7HFKQRORJLHV ,QF ) G WK &LU LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG VHH DOVR $OH[DQGHU Y &DVLQR 4XHHQ ,QF ) G WK &LU ³7LWOH 9,, LV YLRODWHG ZKHQ WKH ZRUNSODFH LV SHUPHDWHG ZLWK GLVFULPLQDWRU\ LQWLPLGDWLRQ ULGLFXOH DQG LQVXOW WKDW LV VXIILFLHQWO\ VHYHUH RU SHUYDVLYH WR DOWHU WKH FRQGLWLRQV RI WKH YLFWLP¶V HPSOR\PHQW DQG FUHDWH DQ DEXVLYH ZRUNLQJ HQYLURQPHQW ´ LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG ,Q GHWHUPLQLQJ ZKHWKHU D ZRUNSODFH LV REMHFWLYHO\ KRVWLOH FRXUWV FRQVLGHU WKH WRWDOLW\ RI WKH FLUFXPVWDQFHV LQFOXGLQJ ³WKH IUHTXHQF\ RI WKH GLVFULPLQDWRU\ FRQGXFW LWV VHYHULW\ ZKHWKHU LW LV SK\VLFDOO\ WKUHDWHQLQJ RU KXPLOLDWLQJ RU D PHUH RIIHQVLYH XWWHUDQFH DQG ZKHWKHU LW XQUHDVRQDEO\ LQWHUIHUHV ZLWK DQ HPSOR\HH¶V ZRUN SHUIRUPDQFH ´ $ODPR ) G DW ± 7KH FRQGXFW DOOHJHG LQ WKH &RPSODLQW ³IDOO>V@ VKRUW RI WKH NLQG RI FRQGXFW WKDW PLJKW VXSSRUW D KRVWLOH ZRUN HQYLURQPHQW FODLP ´ 9DQFH Y %DOO 6WDWH 8QLY ) G WK &LU -DPHV DOOHJHV WKDW IROORZLQJ WKH GHQLDO RI KLV UHTXHVWHG YDFDWLRQ GD\V KH KDG WR DWWHQG QXPHURXV PHHWLQJV ZLWK VXSHUYLVRUV ZKLFK OHIW KLP IHHOLQJ VLFN VFDUHG DQG VWUHVVHG ZLWK KLJK EORRG SUHVVXUH 6HH 'NW DW ± 7KHUH DUH VRPH DOOHJDWLRQV WKDW WKH VXSHUYLVRUV DW WKH PHHWLQJV JRW DQJU\ ZLWK -DPHV RU DFWHG OLNH WKH\ GLG QRW FDUH DERXW KLV UHOLJLRXV SUDFWLFHV EXW WKH OHWWHUV SUHVHQWHG WR -DPHV DW WKH PHHWLQJV VRPH RI ZKLFK DUH LQFOXGHG LQ WKH &RPSODLQW DQG 5HVSRQVH %ULHI UHIOHFW 'HIHQGDQWV¶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³ KH HQJDJHG LQ VWDWXWRULO\ SURWHFWHG H[SUHVVLRQ KH VXIIHUHG DQ DGYHUVH HPSOR\PHQW DFWLRQ DQG WKHUH ZDV D FDXVDO OLQN EHWZHHQ WKH SURWHFWHG H[SUHVVLRQ DQG WKH DGYHUVH DFWLRQ ´ &XOYHU Y *RUPDQ &R ) G WK &LU VHH DOVR +XUL ) G DW ³7R SOHDG D 7LWOH 9,, UHWDOLDWLRQ FODLP D SODLQWLII PXVW WKRXJK >@KH QHHG QRW XVH WKH VSHFLILF WHUPV DOOHJH WKDW >@KH HQJDJHG LQ VWDWXWRULO\ SURWHFWHG DFWLYLW\ DQG ZDV VXEMHFWHG WR DGYHUVH HPSOR\PHQW DFWLRQ DV D UHVXOW RI WKDW DFWLYLW\ ´ $OWKRXJK -DPHV KDV DOOHJHG WKDW KH HQJDJHG LQ SURWHFWHG DFWLYLW\ HLWKHU E\ ZD\ RI KLV UHTXHVWV IRU UHOLJLRXV DFFRPPRGDWLRQ RU E\ ILOLQJ KLV &KDUJH RI 'LVFULPLQDWLRQ KH KDV IDLOHG WR VXIILFLHQWO\ DOOHJH WKDW VXIIHUHG DQ DGYHUVH HPSOR\PHQW DFWLRQ RQ DFFRXQW RI KLV SURWHFWHG DFWLRQV $Q DGYHUVH HPSOR\PHQW DFWLRQ LQ WKH UHWDOLDWLRQ FRQWH[W LV DQ DFWLRQ WKDW ZRXOG GLVVXDGH D UHDVRQDEOH ZRUNHU IURP SDUWLFLSDWLQJ LQ SURWHFWHG DFWLYLW\ Y ,QGLDQD 6HH +XUL ) G DW FLWLQJ &KDLE ) G ± WK &LU +HUH -DPHV DOOHJHV WKDW 'HIHQGDQWV UHWDOLDWHG DJDLQVW KLP LQ WKH IROORZLQJ ZD\V ³7KH\ GRQ¶W VSHDN WR PH DQ\PRUH 7KH\ ORRN DW PH IXQQ\ 3LFN ZLWK PH WU\LQJ WR PDNH SUREOHPV ´ ³WU\LQJ WR PDNH SUREOHPV ZLWK P\ )0/$ GD\V´ DQG ³WKH\ WROG PH , FDQQRW PLVV GD\¶V >VLF@ IRU FRXUW ´ 'NW DW ±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³SUREOHPV´ WKDW VRPH DUH PDNLQJ RU WU\LQJ WR PDNH IRU -DPHV $OWKRXJK WKH 7LWOH 9,, SOHDGLQJ VWDQGDUG LV DQ ³XQGHPDQGLQJ´ RQH 7DWH Y 6&5 0HG 7UDQVS ) G WK &LU -DPHV¶V DOOHJDWLRQV VLPSO\ GR QRW ULVH WR WKLV OHYHO :LWKRXW PRUH KLV DOOHJDWLRQV GR QRW GHPRQVWUDWH HPSOR\HU DFWLRQ WKDW ZRXOG GLVVXDGH D UHDVRQDEOH ZRUNHU IURP HQJDJLQJ LQ SURWHFWHG DFWLYLW\ ( 6HH +XUL ) G DW ± 7KH ,QGLYLGXDO 'HIHQGDQWV $V D ILQDO SRLQW *HW )UHVK WHUVHO\ DUJXHV WKDW -DPHV VKRXOG EH ³GLUHFWHG WR VWDWH >KLV UHOLJLRXV GLVFULPLQDWLRQ FODLPV@ DJDLQVW WKH FRUSRUDWLRQ RQO\ ´ 'NW DW Q *HW )UHVK LV FRUUHFW WKDW ³WKHUH LV QR LQGLYLGXDO OLDELOLW\ XQGHU 7LWOH 9,, ´ //& ) G WK &LU 6PLWK Y %UD\ 1LVFKDQ Y 6WUDWRVSKHUH 4XDOLW\ ) G Q WK &LU RYHUUXOHG RQ RWKHU JURXQGV E\ 2UWL] Y :HUQHU (QWHUV ,QF ) G WK &LU VHH DOVR $NX Y &KLFDJR %G RI (G ) 6XSS G 1 ' ,OO ³6HYHQWK &LUFXLW ODZ LV FOHDU WKDW 7LWOH 9,, GR>HV@ QRW SURYLGH IRU LQGLYLGXDO OLDELOLW\ ´ 7KHUHIRUH -DPHV¶V 7LWOH 9,, FODLPV DJDLQVW $Q]RQD DQG 6LNRUVNL DUH GLVPLVVHG ,I -DPHV ILOHV DQ DPHQGHG FRPSODLQW *HW )UHVK VKRXOG EH QDPHG DV WKH RQO\ 'HIHQGDQW RQ DQ\ 7LWOH 9,, FODLPV DVVHUWHG ,, 6HFWLRQ &ODLP )LQDOO\ WKH &RXUW DQDO\]HV -DPHV¶V FODLPV RI UDFLDO GLVFULPLQDWLRQ WR WKH H[WHQW WKH\ DUH EURXJKW XQGHU 6HFWLRQ VLQFH WKH IRUP &RPSODLQW DOVR FLWHV WR WKDW VWDWXWH 6HH 'NW DW ³6HFWLRQ SURKLELWV GLVFULPLQDWLRQ LQ WKH PDNLQJ DQG HQIRUFHPHQW RI SULYDWH FRQWUDFWV ´ $JHQWV %URNHUV $JHQF\ ,QF Y 1HDU 1 ,QV %URNHUDJH %ODFN ) G WK &LU ,Q RUGHU WR SOHDG D SODXVLEOH 6HFWLRQ FODLP RI UDFLDO GLVFULPLQDWLRQ RQH PXVW SOHDG IDFWV WKDW VXSSRUW KH LV D PHPEHU RI D UDFLDO PLQRULW\ WKH GHIHQGDQW KDG WKH LQWHQW WR GLVFULPLQDWH RQ WKH EDVLV RI WKH SODLQWLII¶V UDFH DQG WKH GLVFULPLQDWLRQ FRQFHUQHG WKH PDNLQJ RU HQIRUFLQJ RI D FRQWUDFW 3RXUJKRUDLVKL Y )O\LQJ - ,QF ) G WK &LU (PSOR\PHQW VXIILFHV DV D FRQWUDFWXDO UHODWLRQVKLS XQGHU 6HFWLRQ ,W EHDUV QRWLQJ IRU SXUSRVHV RI WKLV DQDO\VLV WKDW XQOLNH -DPHV¶V 7LWOH 9,, FODLPV KLV 6HFWLRQ FODLPV GR QRW UHTXLUH DGPLQLVWUDWLYH H[KDXVWLRQ VR WKH DOOHJDWLRQV RI GLIIHUHQWLDO WUHDWPHQW ZKHQ LW FRPHV WR VFKHGXOHV WUXFNV URXWHV HWF PD\ EH FRQVLGHUHG VHH $MD\L Y $UDPDUN %XV 6HUYV ,QF ) G WK &LU DQG 6HFWLRQ FODLPV PD\ EH EURXJKW DJDLQVW LQGLYLGXDO GHIHQGDQWV ZKR SDUWLFLSDWHG LQ WKH XQODZIXO FRQGXFW &DUWHU Y &KLFDJR 6WDWH 8QLY ) G WK &LU VHH &DUOVRQ ) G DW WR VWDWH D 6HFWLRQ FODLP DJDLQVW WKH LQGLYLGXDO GHIHQGDQWV D SODLQWLII PXVW DOOHJH WKDW WKH\ ³LQVWLWXWHG D VSHFLILHG DGYHUVH HPSOR\PHQW DFWLRQ DJDLQVW >KLP@´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³PDWHULDOO\ DGYHUVH FKDQJH LQ WKH WHUPV DQG FRQGLWLRQV RI HPSOR\PHQW >WKDW LV@ PRUH GLVUXSWLYH WKDQ D PHUH LQFRQYHQLHQFH RU DQ DOWHUDWLRQ RI MRE UHVSRQVLELOLWLHV ´ $ODPR Y %OLVV ) G WK &LU DOWHUDWLRQ LQ RULJLQDO FLWDWLRQ RPLWWHG VHH %RVV Y &DVWUR ) G WK &LU D PDWHULDOO\ DGYHUVH FKDQJH ³LV RQH ZKLFK YLVLWV XSRQ D SODLQWLII D VLJQLILFDQW FKDQJH LQ HPSOR\PHQW VWDWXV´ FLWLQJ $QGUHZV Y &%2&6 :HVW ,QF ) G WK &LU DFFRUG &KDXGKU\ Y 1XFRU 6WHHO ,QG ) G WK &LU 3XW GLIIHUHQWO\ DQ DGYHUVH HPSOR\PHQW DFWLRQ LV ³VRPH TXDQWLWDWLYH RU TXDOLWDWLYH FKDQJH LQ WKH WHUPV RU FRQGLWLRQV RI >WKH SODLQWLII¶V@ HPSOR\PHQW WKDW LV PRUH WKDQ D PHUH VXEMHFWLYH SUHIHUHQFH ´ 0DGORFN ) G DW TXRWLQJ -RKQVRQ Y &DPEULGJH ,QGXV ,QF ) G WK &LU ³>1@RW HYHU\WKLQJ WKDW PDNHV DQ HPSOR\HH XQKDSS\ LV DQ DFWLRQDEOH DGYHUVH DFWLRQ 2WKHUZLVH PLQRU DQG HYHQ WULYLDO HPSOR\PHQW DFWLRQV WKDW DQ HPSOR\HH GLG QRW OLNH ZRXOG IRUP WKH EDVLV RI D GLVFULPLQDWLRQ VXLW ´ 3RUWHU Y &LW\ RI &KLFDJR ) G WK &LU FLWDWLRQ DQG LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG VHH DOVR 7KRPSVRQ Y 0HP¶O +RVS RI &DUERQGDOH ) G WK &LU ³7KH LGHD EHKLQG UHTXLULQJ SURRI RI DQ DGYHUVH HPSOR\PHQW DFWLRQ LV VLPSO\ WKDW D VWDWXWH ZKLFK IRUELGV HPSOR\PHQW GLVFULPLQDWLRQ LV QRW LQWHQGHG WR UHDFK HYHU\ ELJRWHG DFW RU JHVWXUH WKDW D ZRUNHU PLJKW HQFRXQWHU LQ WKH ZRUNSODFH ´ FLWDWLRQ DQG LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG $GYHUVH HPSOR\PHQW DFWLRQV W\SLFDOO\ IDOO LQWR RQH RI WKUHH FDWHJRULHV ³ WHUPLQDWLRQ RU UHGXFWLRQ LQ FRPSHQVDWLRQ IULQJH EHQHILWV RU RWKHU ILQDQFLDO WHUPV RI HPSOR\PHQW WUDQVIHUV RU FKDQJHV LQ MRE GXWLHV WKDW FDXVH DQ HPSOR\HH¶V VNLOOV WR DWURSK\ DQG UHGXFH IXWXUH FDUHHU SURVSHFWV DQG XQEHDUDEOH FKDQJHV LQ MRE FRQGLWLRQV VXFK DV D KRVWLOH ZRUN HQYLURQPHQW RU FRQGLWLRQV DPRXQWLQJ WR FRQVWUXFWLYH GLVFKDUJH ´ %DUWRQ Y =LPPHU ,QF ) G ±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¶V DOOHJDWLRQV WKDW FHUWDLQ +LVSDQLF DQG &DXFDVLDQ GULYHUV DUH WUHDWHG EHWWHU RU PRUH IDYRUDEO\ EXW WKHVH WRR GR QRW OHDG WR DQ LQIHUHQFH WKDW -DPHV KDV VXIIHUHG D PDWHULDOO\ DGYHUVH FKDQJH LQ WKH WHUPV RI FRQGLWLRQV RI KLV HPSOR\PHQW VWDWXV ,W LV QRW WKDW WKHVH DFWLRQV FDQQRW VXSSRUW D FODLP IRU UDFH GLVFULPLQDWLRQ EXW DV FXUUHQWO\ DOOHJHG² ODFNLQJ VSHFLILFV DQG ODFNLQJ DQ\ DOOHJDWLRQV DV WR KRZ VXFK DFWLRQV KDG DQ HIIHFW RQ -DPHV¶V HPSOR\PHQW UHODWLRQVKLS ZLWK 'HIHQGDQWV²WKH\ GR QRW VXIILFLHQWO\ DOOHJH DQ DGYHUVH HPSOR\PHQW DFWLRQ LQ DQG RI WKHPVHOYHV 7KXV WKH &RPSODLQW IDLOV WR VWDWH D FODLP IRU 6HFWLRQ GLVFULPLQDWLRQ 6HH H J 3HWHUV Y :DO 0DUW ) 6XSS G 1 ' ,QG DII¶G ) $SS¶[ WK &LU DOOHJDWLRQV WKDW GHIHQGDQWV ZRXOG QRW DOORZ SODLQWLII WR PRGLI\ KHU VFKHGXOH UHSULPDQGHG KHU UXGHO\ IDLOHG WR WUDLQ KHU RQ FHUWDLQ HTXLSPHQW UHTXLUHG KHU WR WDNH D GUXJ WHVW NHSW KHU XQGHU ³FORVH VXUYHLOODQFH ´ JDYH KHU D ZULWWHQ FRDFKLQJ DQG JDYH KHU GLIILFXOW ZRUN DVVLJQPHQWV ZHUH LQVXIILFLHQW WR HVWDEOLVK DQ DGYHUVH HPSOR\PHQW DFWLRQ DV D PDWWHU RI ODZ 7KLV FODLP WRR LV GLVPLVVHG ZLWKRXW SUHMXGLFH &21&/86,21 )RU WKH UHDVRQV H[SODLQHG DERYH WKH &RXUW JUDQWV LQ SDUW DQG GHQLHV LQ SDUW *HW )UHVK¶V 0RWLRQ WR 'LVPLVV 'NW 6SHFLILFDOO\ WKH 0RWLRQ LV GHQLHG ZLWK UHVSHFW WR WKH UHOLJLRXV DFFRPPRGDWLRQ FODLP +RZHYHU WKH 0RWLRQ LV JUDQWHG ZLWK UHVSHFW WR -DPHV¶V FODLPV RI UDFH GLVFULPLQDWLRQ KDUDVVPHQW DQG UHWDOLDWLRQ XQGHU 7LWOH 9,, DQG KLV 6HFWLRQ FODLP 7KRVH FODLPV DUH GLVPLVVHG ZLWKRXW SUHMXGLFH 7R WKH H[WHQW -DPHV FDQ FXUH WKH GHILFLHQFLHV KLJKOLJKWHG DERYH KH VKDOO KDYH XQWLO 'HFHPEHU WR DPHQG KLV FRPSODLQW FRQVLVWHQW ZLWK WKLV RSLQLRQ 'DWH 1RYHPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB +RQ 9LUJLQLD 0 .HQGDOO 8QLWHG 6WDWHV 'LVWULFW -XGJH