1. $VLI7XIDO
,//(*$/,7
,1752'87,21
:$51,1* ,OOHJDOLW LV WKH PRVW FRQIXVLQJ DUHD ZLWKLQ WKH ODZ RI FRQWUDFW
SULPDULOEHFDXVHLWODFNVVWUXFWXUH)RUH[DPSOHWKH,/([RXUVHERRNVWDWHV
WKDW ³$XWKRUV KDYH DOZDV KDG WURXEOH LQ FODVVLILQJ WKH VHSDUDWH KHDGV RI
LOOHJDOLW´DW

2. DQGRQWKHHIIHFWVRILOOHJDOLWWKDW³7KHODZRQWKLVDUHDLV
FRPSOHWHOXQVDWLVIDFWRUDQGIXOORIFRQWUDGLFWLRQV´DW

3. 2175$765(1'(5(',//(*$/%67$787(257+(20021/$:
$ FRQWUDFWPD EH H[SUHVVO IRUELGGHQE DVWDWXWRU SURYLVLRQ 6HH EHORZ
IRUH[DPSOHV

4. HUWDLQ FRQWUDFWV DUH UHJDUGHG DV LOOHJDO DW FRPPRQ ODZ RQ WKH JURXQG WKDW
WKHZRXOGEHKDUPIXOWRVRFLHWDQGWKHUHIRUHFRQWUDUWRSXEOLFSROLF6XFK
FRQWUDFWVDUHDVIROORZV

5. 2175$7672200,7$5,0(25,9,/:521*
,IDFRQWUDFWKDVDVLWVREMHFWWKHGHOLEHUDWHFRPPLVVLRQRIDFULPHWKHQLWLV
LOOHJDODQGWKHFRXUWVZLOOQRWHQIRUFHLW
,I WKH FRQWUDFW LV WR GHOLEHUDWHO FRPPLW D FLYLO ZURQJ LW LV LOOHJDO DQG
XQHQIRUFHDEOH +RZHYHU LI WKH SDUWLHV DUH LJQRUDQW RI WKH IDFW WKDW E WKH
FRQWUDFWWKHDUHFRPPLWWLQJDFLYLOZURQJWKHQLWLVQRWLOOHJDO,IRQHRIWKH
SDUWLHVWRWKHFRQWUDFWNQRZVWKDWWKHFRQWUDFWLVLOOHJDOWKHQRQOWKHLQQRFHQW
SDUWLVHQWLWOHGWRUHORQWKHFRQWUDFWODYDWHV @+ 1

6. 2175$767(1',1*72/($'72255837,21
,138%/,/,)(
$FRQWUDFWIRUWKHDFTXLVLWLRQRIDWLWOHRIKRQRXURUIRUWKHVDOHRISXEOLFRIILFH
ZLOOEHLOOHJDO3DUNLQVRQYROOHJHRI$PEXODQFH@.%

7. 2175$76352027,1*6(;8$/,0025$/,7
$ FRQWUDFW ZKLFK GLUHFWO RU LQGLUHFWO SURPRWHV VH[XDO LPPRUDOLW LV LOOHJDO
)RUH[DPSOHWKHKLUHRIDFDUULDJHWRDNQRZQSURVWLWXWHVRWKDWVKHFRXOGSO
KHUWUDGHPRUHHIIHFWLYHOZDVFRQVLGHUHGLOOHJDOXQOHVVWKHK LUHUZDVLJQRUDQW
RIWKHLQWHQGHGXVHLQ3HDUFHY%URRNV @/5([

8. 2175$7635(-8',,$/727+($'0,1,675$7,21
2)-867,(
$FRQWUDFWWHQGLQJWRDIIHFWWKHDGPLQLVWUDWLRQRIMXVWLFHLVLOOHJDODQGYRLG)RU
H[DPSOHDQDJUHHPHQWQRWWRDSSHDUDWWKHSXEOLFH[DPLQDWLRQRIDEDQNUXSW
QRUWRRSSRVHKLVGLVFKDUJH

9. 2175$7635(-8',,$/7238%/,6$)(7
8QGHU WKH 7UDGLQJ ZLWK WKH (QHP $FW LW LV DQ RIIHQFH WR WUDGH RU
DWWHPSWWRWUDGHZLWKWKHHQHP6XFKFRQWUDFWVDUHWKHUHIRUHLO OHJDO
:KHUHDFRQWUDFWKDVDVLWVREMHFWWKHGRLQJRIDQDFWZKLFKLVLOOHJDOEWKH
ODZRIDIULHQGOIRUHLJQFRXQWULWLVLOOHJDODQGYRLG
)RVWHUY'ULVFROO @
.%

10. ZZZODZWHDFKHUFRXN

11. $VLI7XIDO

12. 27+(52175$76
7KHUHDUHPDQRWKHUH[DPSOHVRIFRQWUDFWVZKLFKZRXOGRIIHQGSXEOLFSROLF
VXFKDVXQGXOUHVWULFWLQJSHUVRQDOOLEHUW+RUZRRGY0LOODU
V7LPEHU @
.%

13. DQGFRQWUDFWVWRGHIUDXGWKH,QODQG5HYHQXH 0LOOHUY.DUOLQVNL

14. 7/5

15. 81/$:)8/0$11(52)3(5)250$1(
$ FRQWUDFW PD EH ODZIXOLQ LWV IRUPDWLRQ EXW SHUIRUPHG E WKH SDUWLHV LQ DQ
LOOHJDOPDQQHU6XFKDFRQWUDFWZLOOEHFRPHXQODZIXO7ZRFRQWUDVWLQJFDVHV
DUH $QGHUVRQ Y 'DQLHO @ .% DQG $UFKEROGV )UHLWDJH

16. /WG Y
6SDQJOHWW/WG @$OO(5
7KH WHVW IRU GHWHUPLQLQJ WKH OHJDOLW RU LOOHJDOLW RI D FRQWUDFW WKDW ZRXOG
RWKHUZLVHEHODZIXOEXWIRUWKHIDFWWKDWLWVSHUIRUPDQFHLQYROYHGDEUHDFKRID
VWDWXWHZDVODLGGRZQLQ6W-RKQ
V6KLSSLQJRUSY5DQN/WG@$OO(5
LHGLGWKHVWDWXWHLQWHQGWRSHQDOLVHRQOFRQGXFWRUGLGLWLQWHQGDOVRWR
SURKLELWWKHFRQWUDFWLWVHOI
2175$765(1'(5('92,'21*5281'62)38%/,32/,
HUWDLQFRQWUDFWVDUHH[SUHVVOGHFODUHGWREHYRLGEVWDWXWH)RUH[DPSOH
ZDJHULQJFRQWUDFWVDUHUHQGHUHGYRLGEWKH*DPLQJ FW
$
HUWDLQFRQWUDFWVDUHYRLGDWFRPPRQODZRQWKHJURXQGVRISXEOLFSROLF

17. 2175$76:+,+28677+(-85,6',7,21
2)7+(28576
$QFRQWUDFWZKLFKDWWHPSWVWRGHSULYHWKHFRXUWVRIDMXULVGLFWLRQZKLFKWKH
RWKHUZLVH ZRXOG KDYH LV YRLG )RU H[DPSOH WKH +RXVH RI /RUGV GHFLGHG LQ
+PDQY+PDQ @$WKDWDZLIHFRXOGQRWYDOLGOFRQWUDFWZLWKKHU
KXVEDQGQRWWRDSSOIRUPDLQWHQDQFHRQDGLYRUFHDQGWKDWDFRQWUDFWRIWKDW
NLQGGLGQRWSUHYHQWKHUIURPDSSOLQJ

18. 2175$7635(-8',,$/727+(67$7862)0$55,$*(
$FRQWUDFWZKLFKDWWHPSWVWRUHVWUDLQRUSUHYHQWDSDUWIURPPDUULQJLVYRLG
DQGDJDLQVWSXEOLFSROLF/RZHY3HHUV

19. %XUU

20. 0DUULDJH EURNHUDJH FRQWUDFWV DJUHHPHQWV WR SURFXUH WKH PDUULDJH EHWZHHQ
WZR SDUWLHV

21. DUH DJDLQVW SXEOLF SROLF DQG YRLG +HUPDQQ Y KDUOHVZRUWK
@.%

22. :KDWLVWKHVWDWXVRIFRQWUDFWVEHWZHHQPDUULDJHEXUHDX[
DQGWKHLUFOLHQWV

23. 2175$76,15(675$,172)75$'(
$OO FRYHQDQWV LQ UHVWUDLQW RI WUDGH DUH SULPD IDFLH YRLG DQG XQHQIRUFHDEOH DW
FRPPRQ ODZ 7KH RQO EHFRPH HQIRUFHDEOH LI WKH DUH VKRZQ WR EH
UHDVRQDEOHDVEHWZHHQWKHSDUWLHVDQGWREHLQWKHSXEOLFLQWHUHVW RUGHQIHOW
1
Y0D[LP1RUGHQIHOW*XQV $PPXQLWLRQR @

24. 0DQ HPSORPHQW FRQWUDFWV FRQWDLQ FODXVHV UHVWULFWLQJ HPSORHHV
DFWLYLWLHV
GXULQJWKHFRXUVHRIHPSORPHQWDQGDIWHULWVWHUPLQDWLRQ5HVWUDLQWFODXVHV
DOVR DSSHDU LQ FRPPHUFLDO GHDOLQJV EHWZHHQ EXVLQHVVHV VXFK DV ZKHUH WKH
SXUFKDVHURIDEXVLQHVVZLVKHVWRSURWHFWLWVJRRGZLOO
6HHVHSDUDWH +DQGRXW
ZZZODZWHDFKHUFRXN

25. $VLI7XIDO
7+(216(48(1(62)7+(9$5,286)25062),//(*$/,7
*+7UHLWHO7KH/DZRIRQWUDFW WKHGLWLRQ

26. KDVFODVVLILHGWKHHIIHFWV
RILOOHJDOLWLQWRWZRSDUWV

27. (QIRUFHPHQWDQG

28. 5HVWLWXWLRQ

29. (1)25(0(17
7KH FRXUW ZLOO QHYHU³HQIRUFH DQ LOOHJDO FRQWUDFW LQ WKH VHQVH RI RUGHULQJ D
SDUW DFWXDOO WR GR VRPHWKLQJ WKDW LV XQODZIXO RU FRQWUDU WR SXEOLF SROLF
+RZHYHULQFHUWDLQFLUFXPVWDQFHVDSDUWPDEHDEOHWRFODLPGDPDJHVRQ
WKHFRQWUDFW7KHODZRQWKLVTXHVWLRQLVFRP SOH[DQGQRWYHUVDWLVIDFWRU
$

30. 326,7,212)*8,/73$57
$QLOOHJDOFRQWUDFWFDQQRWEHHQIRUFHGEDJXLOWSDUW7KXVDSHUVRQZKR
KLUHV D KDOO WR GHOLYHU EODVSKHPRXV OHFWXUHV FDQQRW VXH IRU SRVVHVVLRQ
RZDQ Y 0LOEXUQ

32. D ODQGORUG ZKR OHWV SUHPLVHV ZLWK JXLOW LQWHQW
FDQQRW VXH IRU UHQW $OH[DQGHU Y 5DVRQ

34. DQG WKH RZQHU RI D
EURXJKDP NQRZLQJO OHW WR D SURVWLWXWH IRU WKH SXUSRVH RI KHU SURIHVVLRQ
FDQQRWVXHIRUKLUH3HDUFHY%URRNV

36. 7KHVHYHULWRIWKHUXOHWKDWDJXLOWSDUWFDQQRWHQIRUFHDQLOOHJDOFRQWUDFWLV
PLWLJDWHGLQWZRZDV
L

37. 7KH UXOH RQO SUHYHQWV D JXLOW SDUW IURP HQIRUFLQJWKH FRQWUDFW LW
GRHV QRW SUHYHQW KLP IURP UHFRYHULQJ GDPDJHV LQ WRUW ZKHUH WKH
RWKHU SDUW
V FRQGXFWFRQVWLWXWHV QRW PHUHO DE UHDFK RI WKH LOOHJDO
FRQWUDFW EXW DOVR DQ LQGHSHQGHQW WRUW 6HH6DXQGHUV Y (GZDUGV
@:/5
LL

38. 7KHUH LV VRPH ODWLWXGH LQ GHWHUPLQLQJ ZKR LV D ³JXLOW´ SDUW ZKHUH
WKH LOOHJDOLW OLHV LQ WKH PHWKRG RI SHUIRUPDQFH )RU WKH SUHVHQW
SXUSRVHVDSDUWLVQRWJXLOWEHFDXVHKHSHUIRUPVDFRQWUDFWLQDQ
XQODZIXOPDQQHU6HH6W-RKQ6KLSSLQJRUSY5DQN/WG @
4%
:KHUH WKH LQWHQWLRQ WKDW RQH SDUW VKRXOG GR DQ XQODZIXO RU LPPRUDO

39. DFW
H[LVWVDWWKHWLPHRIFRQWUDFWLQJHYHQWKHRWKHU SDUWPDEHXQDEOHWRVXH
RQWKHFRQWUDFW6HH$VKPRUH RY'DZVRQ/WG @:/5
%

40. 326,7,212),112(173$57
)RUWKHSUHVHQWSXUSRVHDSHUVRQPDEH³LQQRFHQW´EHFDXVHKHLVPLVWDNHQ
RULJQRUDQWDERXWHLWKHUWKHODZRUWKHIDFWV
L

41. ,JQRUDQFH RU PLVWDNH RI ODZ GRHV QRW LQ JHQHUDO JLYH D SDUW WKH
ULJKWWRHQIRUFHDFRQWUDFWZKLFKLVDIIHFWHGELOOHJDOLW
LL

42. $ SDUW PD EH LQQRFHQW LQ WKH VHQVH RI EHLQJ XQDZDUH RI RU
PLVWDNHQDERXWWKHIDFWVZKLFKJLYHULVHWRWKHLOOHJDOLW 7KHULJKW
RI VXFK D SDUW WR HQIRUFH WKH FRQWUDFW KDV EHHQ XSKHOG LQ VRPH
FDVHV EXW GHQLHG LQ RWKHUV HYHQ ZKHUH LW KDV EHHQ GHQLHG RWKHU
UHPHGLHVPDEHDYDLODEOHWRWKHLQQRFHQWSDUW
DVHV XSKROGLQJ WKH LQQRFHQW SDUW
V FODLP LQFOXGH %OR[VRPH Y :LOOLDPV

43. % DQG $UFKEROGV)UHLJKWDJH

44. /WGY6SDQJOHWW/WG @4%
DVHV UHMHFWLQJ WKH LQQRFHQW SDUW
V FODLP LQFOXGH WKH OHDGLQJ FDVH RI5H
0DKPRXGDQG,VSDKDQL @.%
LLL

45. 7KH LQQRFHQW SDUW PD KDYH WKUHH RWKHU UHPHGLHV )LUVW WKH
LQQRFHQW SDUW PD EH DEOH WR UHFRYHU GDPDJHV IRU EUHDFK RI
³FROODWHUDOZDUUDQW´6HH6WURQJPDQY6LQFRFN @

46. 6HFRQGO
WKH LQQRFHQW SDUW PD EH DEOH WR UHFRYHU GDPDJHV IRU
PLVUHSUHVHQWDWLRQ 6HH 6KHOOH Y 3DGGRFN @

47. 7KLUGO
ZZZODZWHDFKHUFRXN

48. $VLI7XIDO
LQQRFHQFH PD EH PDWHULDO LQ DQ DFWLRQ IRU WKH UHFRYHU RI PRQH
SDLGRUSURSHUWWUDQVIHUUHGXQGHUDQLOOHJDOFRQWUDFW

49. 5(67,787,21
$SHUVRQZKRFDQQRWHQIRUFHDQLOOHJDOFRQWUDFWPDLQVWHDGFODLPUHVWLWXWLRQ
LQ UHVSHFW RI PRQH SDLG SURSHUW WUDQVIHUUHG RU VHUYLFHV UHQGHUHG E KLP
XQGHUWKHFRQWUDFW
7KH JHQHUDO UXOH LV WKDW PRQH SDLG RU SURSHUW WUDQVIHUUHG XQGHU DQ LOOHJDO
FRQWUDFWFDQQRWEHUHFRYHUHGEDFNIRUH[DPSOHVHH3DUNLQVRQYROOHJHRI
$PEXODQFH

51. ,QSUDFWLFHKRZHYHUWKHJHQHUDOUXOHLVVXEMHFWWRPDQH[FHSWLRQV
$

52. /$663527(7,1*67$787(6
,IDFRQWUDFWLVPDGHLOOHJDOEDVWDWXWHSDVVHGIRUWKHSURWHFWLRQRIDFODVVRI
SHUVRQV D PHPEHU RI WKDW FODVV FDQ UHFRYHU EDFN PRQH SDLG RU SURSHUW
WUDQVIHUUHGEKLPXQGHUWKHFRQWUDFW6RPHVWDWXWHVH[SUHVVOSURYLGHWKDWD
PHPEHURIDSURWHFWHGFODVVVKDOOEHHQWLWOHGWRUHFRYHUEDFNPRQHSDLGRU
SURSHUWWUDQVIHUUHGXQGHUDQLOOHJDOFRQWUDFW
)RUH[DPSOHXQGHUVRIWKH5HQW$FWWKHSDPHQWRIDSUHPLXPLQ
FRQVLGHUDWLRQ RI EHLQJ JUDQWHG D WHQDQF LV LOOHJDO DQG DQ RIIHQFH DQG LV
H[SUHVVOVWDWHGWREHUHFRYHUDEOHEWKHSDLQJSDUWWKDWLVWKHWHQDQW
%

53. 2335(66,21
$ SHUVRQ FDQ UHFRYHU EDFN PRQH SDLG RU SURSHUW WUDQVIHUUHG XQGHU DQ
LOOHJDO FRQWUDFW LI KH ZDV IRUFHG E WKH RWKHU SDUW WR HQWHU LQWR WKHFRQWUDFW
³2SSUHVVLRQ´LVKHUHXVHGLQDVRPHZKDWEURDGVHQVH6HH
$WNLQVRQY'HQE

54. + 1

55. 0,65(35(6(17$7,21
$ SHUVRQ FDQ UHFRYHU EDFN PRQH SDLG RU SURSHUW WUDQVIHUUHG XQGHU D Q
LOOHJDO FRQWUDFW LI KH HQWHUHG LQWR WKH FRQWUDFW DV D UHVXOW RI WKH RWKHU SDUW
V
IUDXGXOHQWPLVUHSUHVHQWDWLRQWKDWWKHFRQWUDFWZDVODZIXO6HH
+XJKHVY/LYHUSRRO9LFWRULD/HJDO)ULHQGO6RFLHW @.%
'

56. 0,67$.(
0LVWDNH RI IDFW FDQ EH D JURXQG IRU UHFRYHU RI PRQH RU SURSHUW HYHQ
ZKHUHLWGRHVQRWJLYHWKHPLVWDNHQSDUWWKHULJKWWRHQIRUFHWKHFRQWUDFW)RU
H[DPSOHVHH
2RPY%UXFH

57. (DVW
1RWH 6RPHZULWHUVVWDWHWKDWZKHUHDSDUWLVLQGXFHGLQWRDQLOOHJDOFRQWDFW U
EVRPHRSSUHVVLYHFRQGXFWIUDXGRUPLVWDNHWKHQLWLVFOHDUWKDWWKHSDUWLHV
DUH QRW LQSDUL GHOLFWR HTXDOO ZURQJ

58. DQG LQ VXFK FLUFXPVWDQFHV WKH FRXUWV
ZLOODOORZUHVWLWXWLRQ
(

59. 5(38',$7,212),//(*$/385326(
$SHUVRQPDEHDEOHWRUHFODLPPRQHSDLGRUSURSHUWWUDQVIHUUHGXQGHUDQ
LOOHJDO FRQWUDFW LI KH UHSXGLDWHV WKH LOOHJDO SXUSRVH LQ WLPH 7ZR FRQGLWLRQV
PXVWEHVDWLVILHGWREULQJWKHUXOHLQWRRSHUDWLRQ
ZZZODZWHDFKHUFRXN

60. $VLI7XIDO
L

61. 5HSXGLDWLRQLQWLPH
$ SDUW ZKR UHSXGLDWHV EHIRUH DQWKLQJ KDV EHHQ GRQHWR SHUIRUP
WKH LOOHJDO SXUSRVH FDQ UHFRYHU EDFN KLV PRQH RU SURSHUW ZKLOH
RQH ZKR UHSXGLDWHV DIWHU WKH LOOHJDO SXUSRVH KDV EHHQ IXOO FDUULHG
RXWFDQQRWUHFRYHU7ZRFDVHVPDEHFRQWUDVWHGRQWKLVSRLQW
7DORUY%RZHUV

62. 4%'
.HDUOHY7KRPVRQ

63. 4%'
LL

64. 9ROXQWDUUHSXGLDWLRQ
5HSXGLDWLRQ PXVW EH YROXQWDU LW PXVW QRW EH IRUFHG RQ WKH SDUW
FODLPLQJ UHFRYHU E WKH LQWHUYHQWLRQ RI WKH SROLFH RU RI D WKLUG
SHUVRQRUEWKHRWKHUSDUW
VEUHDFKRIFRQWUDFWDVLQ
%LJRVY %RXVWHG @$OO(5
)

65. 125(/,$1(21,//(*$/75$16$7,21
$ SHUVRQ PD EH DEOH WR UHFRYHU PRQH RU SURSHUW ZKLFK KDV EHHQ
WUDQVIHUUHG XQGHU DQ LOOHJDO FRQWUDFW LI KH FDQ HVWDEOLVK KLV ULJKW WR WLWOH WR LW
ZLWKRXWUHOLQJRQWKHFRQWUDFWRU RQLWVLOOHJDOLW)RUH[DPSOHVHH
%RZPDNHUV/WGY%DUQHW,QVWUXPHQWV/WG @$OO(5
7LQVOHY0LOOLJDQ @:/5
7+(58/(62)6(9(5$1(
6HYHUDQFHLQYROYHVWKHFRXUWLQUHPRYLQJWKHREMHFWLRQDEOHSDUWVRIDFRQWUDFW
ZKLOVWHQIRUFLQJWKHUHPDLQGHU7KLVSRZHUPDEHH[HUFLVHGLQWKHFDVHRI
YRLGFRQWUDFWVDQGSRVVLEOLOOHJDOFRQWUDFWV7KLVSRZHULVVHOGRPXVHGE
WKH FRXUWV DV LW LV WDQWDPRXQW WR FRQGRQLQJ XQODZIXO DFWLYLWLHV DOWKRXJK
FRQWUDFWVLQUHVWUDLQWRIWUDGHSURYLGHDPDUNHGH[FHSWLRQWRWKLVSROLF
6HYHUDQFH RI D FODXVH ZLOO RQO EH DOORZHG LI WKH FODXVH IRUPV D VXEVLGLDU
UDWKHUWKDQDVXEVWDQWLDOSDUWRIWKHFRQWUDFWRWKHUZLVHWKHFRQWUDFWEHFRPHV
WRWDOOXQHQIRUFHDEOH6HH
%HQQHWWY%HQQHWW @$OO (5
*RRGLQVRQY*RRGLQVRQ @$OO(5
$OWHUQDWLYHO LW PD EH SRVVLEOH WR VHYHU VSHFLILF SDUWV RI D FODXVH E
HPSORLQJWKH³EOXHSHQFLO´WHVW7KLVWHVWSURYLGHVWKDWWKHREMHFWLRQDEOHSDUW
RIDFODXVHZLOORQOEHVHYHUHGLILWOHDYHVWKHUHPDLQGHULQDJUDPPDWLFDOO
FRUUHFW DQG XQGHUVWDQGDEOH IRUP 7KH FRXUWV DUH QRW DOORZHG WR UHGUDIW
FODXVHV6HH
0DVRQY3URYLGHQWORWKLQJ @$
*ROGVROOY*ROGPDQ @K
7KHRQOSUHFRQGLWLRQLVWKDWWKHFODXVHLWVHOIPXVWEH GLYLVLEOHLQQDWXUHWKDW
LV WKH FODXVH PXVW QRW EH D VLQJOH FRYHQDQW EXW LQ HIIHFW D FRPELQDWLRQ RI
VHYHUDOGLVWLQFWFRYHQDQWV2WKHUZLVHVHYHUDQFHZLOOQRWEHDOORZHGDVLWZLOO
FKDQJHWKHQDWXUHRIWKHFRQWUDFW6HH
$WWZRRGY/DPRQW @.%
ZZZODZWHDFKHUFRXN