in the united states district court for the southern...

1

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF FLORIDA

CASE NO. 9:13-CIV-80725-MARRA

CURTIS J. JACKSON, III,

Plaintiff,

v.

SLEEK AUDIO, LLC, MARK KRYWKO,

MICHAEL KRYWKO, JASON KRYWKO

and GREGORY WYSOCKI,

Defendants.

____________________________________/

NOTICE OF FILING REDACTED FINAL AWARD

Plaintiff, CURTIS J. JACKSON, III, through undersigned counsel, herewith files its

Redacted Final Award pursuant to Court Order dated March 24, 2014 [D.E. 58].

Dated: April 3, 2014

Respectfully submitted,

SHUTTS & BOWEN LLP

By: s/ John F. Mariani John F. Mariani FL Bar No.: 263524

Co-Counsel for Plaintiff

[email protected]

525 Okeechobee Boulevard, 1100 CityPlace Tower

West Palm Beach, FL 33401

Telephone: 561-835-8500/Fax: 561-650-8530

and

Bruce Beckner, Co-Counsel for Plaintiff, PHV

[email protected]

GARVEY SCHUBERT BARER

1000 Potomac Street, N.W., Fifth Floor

Washington, DC 20007-3592

Telephone: 202 965 7880/Fax: 202 965 1729

WPBDOCS 8455442 1

Case 9:13-cv-80725-KAM Document 61 Entered on FLSD Docket 04/03/2014 of 74

2

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on April 3, 2014, a true and correct copy of the foregoing

was filed using the Clerk’s CM/ECF system which will send a notice of electronic filing to:

Kristin M. Ahr, Esq., [email protected], Broad and Cassel, One North Clematis Street,

Suite 500, West Palm Beach, FL 33401, Mark F. Raymond, Esq.,

[email protected], Rhett Traband, Esq., [email protected], Broad

and Cassel, One Biscayne Tower, 21st Floor, 2 S. Biscayne Blvd., Miami, FL 33131 and Dennis

K. Egan, Esq., [email protected], Lynn A. Sheehy, Esq., [email protected],

Kotz Sangster Wysocki, P.C., 400 Renaissance Center, Suite 3400, Detroit, Michigan 48243,

Attorneys for Sleek Audio, LLC, Mark Krywko, Michael Krywko, Jason Krywko, and Gregory

Wysocki.

SHUTTS & BOWEN LLP

By: s/ John F. Mariani

John F. Mariani

Fl Bar No.: 263524

WPBDOCS 8455442 1


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(5~ ;l(~C1t`Tlt} S~ ttC.; 1Ss1T1 <i2'~?~jt':1~~~~ tll;z~?llif'.. S;:~tiiltt C`R~ C"C)I~~t"l'JL~tI':i}' ~li'S~ItiL'_ C7tF~ t)~ ~}ZC Z14T'C'i;tlt4:i1[f+.

~~15t~, tl.e ~~~~r4z:~~zer~ts` ~~~~~,~~:ti~~.~ ~iri~its~<ttic~t~ slat~se ~~r~~~~~~l~s t}~~~t ti~~ ~•'~~~1.,itr~tc~i- hz~~ tE~c sz~itil~sriis

C<) illy iCt~ ~~ t[7V 1'f:i11~~C~t" (?C t'~~li'~ 241<ll <i 4:l?lii-~ 4l~ S'(tI;I~C'~~;il~ ~l2~Ii;~1CIiC111 ti?f~IIi~? Iii 1~7C: S~~3~c'.

er~c:<~rt7~r~r~sit~r t(t~ l)e~i~.;t~~t~ ci i~f~~..tttt~T~ caul ~ ~rat71 itz cat~t~j~-~t~ity tip ~~~~~~1i4~_~t,lc l~~t~," l if~~s

arbitrt~titir~ el~~~~es <~Ist, rec~t~ire tl~ai <~t~~~ l-~~zciizt~ ~trt~itr~~fi~~rt is tc~ h~: ac~Et~initer•~fl t-~~' ,i ~~~%I5 ~ar~d~ r

its ~'0~~7~~~eltier~sr~c r1t~l~itr~iti~~tl I~uj~.5. e~i:c.{?t ~s r~~aciifi~~i t~S~ the. arbit~~a[iat~ ctt3itse5 t[,~~~ts~:ls=es:

.I;ti~iS IZc~I~~ "'~{i:) <~»c~ (;~.r) 4'rc~~ic~~ t4~4~t thy: ;'~~v~e-c~ ~~#~th~ nr~~itrai~~r Yi~<zv 4ii.lt~csit~ fees ~~~~d

e.~ (.~i: t~ ses.

\ciclitic~►Za11y. ~I~•, Jacksazl`~ Stat~tr~L~~~i i~f'C_'l~~itn ir~clucl~5 the t~,liiati~~in~: ",'lccor~in~l~~,

(~Ir..)ack~~~t~ 4~sks lhe:.A.r~k>it~-~~ts~c tc> ~~v~~tci tai~~i t~is ~~}senses a~~cl ~-~:<~sn~~~~~lc attun~ey'~ ft-4;


~issc>~:i~itc i3 ~~,~ii[~ t}~~ ~~►~c}sacutic,;~ cif tflt~ ~:as~,"' .ia~ksc~~~'s c~~ur~s ..0 also ;;i~~~e~i <~ ~tipt~I~xtic~n t~!"

:'irhitr,ztor cl~its_=d I~~t~i°u~i~•3~ 7, ?t}1'? iil ~~°I~ic;~l f~~. ~~r€~c~ c}r~ J<i~;ksz~r}'s h~.37:.~1t to ~irbitrz~t~ ;YII cl<~izns

,._~t~;~~i~~i il~c ~-~aa~ti~;s ~zt-~L~ tt~ `,~r~-~ ~.z~.~ °atl~,' r~~ht~" .l~ic~:;c>3~ ~~~~tseti4~sl tc> nave. t(~e i1Y~tt~t' (~t~~.~at4c1 ~r~

~:c,t~r~t. i~itrttlei•_.lac}~so1~'s ~l~~a~il r~, ?{)l F'1~~litni~lary Sia#~~a~e~t ~orici~~c~es ~~.~itl~ tfle follo~vii-i~:

;143cksok~ as ~_i~citltrl to ~~rt :~{<ir~~ i~t }iis tt~~~?r:...{'?j r~.~~~~~~ciit~~5 Js_~cksar~ hip re.~~sE~nabl~ attc~ril~:y

fey ~ in~l c~~st~ ii} ~.let't:~ic{it~L ~le~k`s (4icj in a~~ ata7cr~:~tt tc~ ~;e c~c:t~r•rnine~ her' tl~~ 1~r•h tratt,i-,"

i~i~t<<I(y, .I,i~ks~~rt's f'c~5t-Iic~if~ir ~~ I3ri~f~~itiki €'rt~pc}s~:3 3~itt~i~~~~~ c>t' [=ac:1 ~itt~i Ct}r~~1~~sit7~t~ ~~f~ C.E~~;

1~~,~ln r~~~ikt ;tell. a<.^<jiz~. },r , z~:ascit~~t[}le ".~~~t~~rti,~3' te~.s ~~r~tl cf>sis ire .gin ~~tt7~7t~rti tc} t~~: d~t~ririt~~~f E~<<

t at, ,~rhitr~al~?r, , _ .~,

Ci t~: clear t}jai tt~r~~~c 1..z~~: ~~e~~t ~;~~erai E~;~~~t'~ss ~~ Kai;:r.~s t~}• i;~~I;sc~~~ tc> ,taw.. <l ~.ii;r~icia c:s~t~rt

c!rt~:r~t~it~~tl~~ s+rt~c~iirtr t?i- ~}rti [ces <ir~ci cr~~t5 tt> }?~ ~i~~rar.;tci tc~ tf~+~ ~~reE~~~i9i~3<~, ~a<tr~t~; ,t~Ycl tl<ai.

tf~~er~:.~tc~re, tlFe r1z~l~it3~:~1c~r, ar~i~ i~c~t a ~~'t~~ricl~ ~:t,~~~r~, ~t~1~ey ~x~~'~~rc~ the ~r~~-~itin~~ ~~s3~-ties in tf~i

_,ii't'~"~i 1"lt}()TI t.%IC~.SI" :'C;5~7s'.Ctt1't"_' Cfai1S(}llsi~? ~' it~tCtt-tlt~VS #GGS ~~?YC~

(.Ct1iti.

f f. `~ie~?~ tl1z~ E)~;T~~c~~a~tr~ateu ~a E3t~~i ~ E3:~ ati ,t~[t~rn~t's` I~e~:

Si~C'<'~i~:ì ~1~t4)I~IlC}' ~a'~~ fill~?t~E3kti5lCiti F't,S(l1t~ti[~; ~i~)~l?'O`xi7lldtt.~~' ̀ ~+j.~}!4'~ 1C1<ltltlf'11~!':~i ~~=~;; I,~~li:

,~I~>c.~c~s?~~z~" K~~i~~~~~~~t ,.~risirl~ ~~~~~t~~~ t~~.: p=-~~c~a,ct ~P'tlz~^ t7LrGz~h~~• c~F nc~c€rs ~vr~rk~~t t~~r `ti1e~k';; d~:~urne~°

£tfltf t~t~ YtSZii'~I(1`<. <lttt)E"ItL'Y S 3-tll }]lit}lei' ~1E.)lt1'E} f'<l"tt~) ~~~'<<~ S t;tlLtilSt~. ?tilt~<P zl ~t"i. c ["I'rttl~<S:l1Cii1.

~d iti~ `,~il~~ ~. <i.e ~ntitl~;~i to se :}itc~ ~~t'-~, ~_>f` ~l~el~'S t'ecc~uc;ry iri tktis z~~atte~~ Niter clir~u~:ti~~r1 t~f'

~:.pei~scs. ~f~id~:l`f~t ok'l7E:nr~i~ k~.. Ls~~~n, l~xliibit A Eta the. ,~tic~~t~L}~ f~ec: ~~it-~ci C.òst ̀ ~~sl-~~1~i 5ic>ra c,f

~ie.cl: Audio, ~,L:C.'. 5le~:k fii~~•ill~~.r r~.c~E~~~t th<~i fire l~~cle t~~r a.rno~~t~l h~ cic7uE~l~.ci ~~ a r~st~lt c~f'ili

€tt~7~li~~~tic,r~ c7#'~ii~ "c:r~l7t~Ixce.rz~~:r~t" c:z~- „~;c7t~tial~c~icv" ra~ttiii~~l sir ~~~}ticii ~~pplies its c~ts:'s ti~~IZece

E~ttc~~-ncys' tec~ a,~cl c~:}~is ~~t~ti ~?ei3t~. tzeb-~x~~ds;ci tc~ tl~~ ~arc~ai(iri~ p~~~ty ~,urst~a~tt t~~ ~t cc~r~tr~~ct, t•~~tller

th~~ri ~~ ~t<~tki[~. See, e.~., 3~ll v, U,S._~. A4c}uisfti~~z3 €.à., I7~c.. 73~ ~c~.~'~~ ~1Cj~~ (€'!a. ~1~}~~~~;


`~►<ar~~i<~rd t.~t€warztr~~y ~~ts. C'~}. ~_, ~.~l~atistrc~t~~, ~S S~J. ?c~ K?~ (~lt~. 1~~~?!7); Fic~~~icta 1?zitient'~

(_'6~rn~7er~satic~r~ t~ Et~~cl v. Rc~~~4., ~7'? 4t~.?rJ t 1 ~~ ("~j ltz. 1 E)~S }, r:Ir~3cr (~)u<~rtst.rt4i~t, v3~~ic~t~s

i~~f_~lti~ liters curt t,~ ~~~?~~lic~~l, <i~~~e.tldifi~ oc~ ~slietl~~e til~ 1i1~~!iE~i~~3~4 «f ~ucce. at tf1~ i~:t~isct is

`~~Erceess r~7or~ ti~~l~° tklar~ t~c~t "~`~e.~~,'" car „tic~cce:~s t~r~likelY'." r'~ Tni~(is~~licr c,l' 1.~ tc:, ?.(i is

~~~~pli~~cl tee ~~~~ "~v+ sl" cn~e t~;~(~ic:f~ is hc~sv Sle~~ c~a~~r:tctec~iz~s t1~i4 ~tzs~ a~~~i, ttle~~~.tc,t~t. r~:gtl~:5ts 21-~<lt

~i rtltt(ti~7lier ;7 E'? E?e .~t~pliLd.

Jticl:~c}at c;c~~~i~r~c~l:~ that thc~ .hfti~l~~~'ii of '~I~it'k is.r~~ kc~, L~ts~tti~lly :~,_tb~~litr.eci as t;x~~ihit E3 ~s~

til~;~~~~'S C~~~,1~ iz1 `~up~~i~rt c;t'rl.tt«rnt~5` ~~e~; tzr~d ~'c~st ~uE~i~li~i~~ci. is izit~dec~t~~~t~: i, ti}~c~~~; t~~4~i ~n

tCt[1I1J1~;t.11C 1' 11?Ct[Ii~l~l€'i ". .1~'<1S 1'~':lt'1"~itlti'.G~ lti (?T'C~t':t' ~t~;' ~'~C:~.:~~ €E) i'~~~1~!? E:~?st3~~;'~::ili C~11_!(i`?:l. t~'IS",

I~:r ~~kc~'~ 4alli ~ i~~it ~~~~al~:: tfnlrt,~ iii ~cr~~~ ~1 dies. ~~~?t t~,~1~ ticac~ ii #ail tcj <tzi~:rr;:~~~~te ~ti~E~i~'n l~~lti~

fl(i117 1.'"i(' ~OC4'1q`~it3 (;+',~i'i$LI~iC:t~, 1~ 6;~S1t;5 TIiF(~S''C:Ii ;>i1V ~lt~~•~` ITl<li11'' f4t1f1S ~}~' Z:(.'tI15Ll~tE~ii, O't' 4' ~1i:((?~:t

~I~cst Ii~;~l; ~p~ci<~li:r~c1 iii cc>r~iisE~;~at~t Eec.~ Isti~~~t ~t~ (a~ ,t7 ar~~ cl~~, ~i~t ~ ire its fi ~:c~r~~~~1c:. s~t~~~~~~ <~s

c~~i~itri~ t~ crt~ S~~Gc:isi'sijc:ci i{~ irltell~i~s.cii l z3r~~~~erti° liti~ats~>Ta.. , ~ lhr`(~~rt ~Isc~ is {~ii„in~ :art ~i~e d~:tails

~~1'tl~t> ~:o~~tit~~;c:ni ~e~; t~t~a~~,~~~~lt.~~t ~I~~~t ~~~~, ~ra~t~,~t~ ~~z~~~~c5~.~~1 tc} tl'~s~. ~,xl~vr !~'l~~~icl<i ~irr~~s that l~~

,~

riltc~kifC)ill~~ti`, .E~l~~tiC'3~ ~3Y-crlt~ti ~f7i1~ EUUi' iiil'tll~tl'tS C~i tils:~}ti~S ~cSl~s' tll"TTl ~li'C. z2{.`:() ~f~4t11~7ti;1'.''~ O~

?j~ti i, ilti~:.tl, k~[1'litt~';~l< ~ST"r1l ttFl t11i >Y'i;`i~ 3I3 T~:~7t't;5~?`1~112~„ ~ I~:G~~, ~~i~ Cl?i~Y I(} 5~t,1` 1~r4: 14'x?<il ~~~( ~l~ii"ttl'S

~tC~i711~ fl'<lt~ ~?f'Ci}ill; ii ~l~Ot~~l~s:'SS tilVt,ti~E37e'Fl~ i~[lt~ ~(1 1SSlI3't' T~~;~~.~}'ITiC:I3t t~f ~C)`•zI1S l~1aE~L' ~)V 'llt~l

i~(t~~~ber~, ~.~~ t~;i~~c~;~~c~r~> ~Vv4c~c~i. a p~zrtr~~:r iz~ ~(cek's (a~~r ~irr~~ icy t}lis czcsG," ([~t~l~hasi:; z~dd~~i}.

!t i t~~i.~e that ~if.:t<~il~ ~~ie lacl~iny~ ~~ tl-~~: k~.~~~~a~~k~~ at'iiclG~~ik, I,~:ti given .i~ickyc~i~ <7~t~7it5 ti~at

~~[tjl~urc i=s nc> <jis~utt~ t}i<~r ~l~ek A~idic~ tacl~e.d tl~e fi~r~~.is to ~<a~ cifttns<-1 can ate }~~~u~~ltir t~asi~.. , „

,1<~c~;sc~n's ̀ ~i~r~-I~~ti~i+~' E3Y i<t, ~?. 2. I`ft,~~, ~h~. "r~~le4r~~t~k i~zi~~Ei:t"` ~~~c~tfltl 21~v~. re~~uirud '"<z conti~~s~czlcy

C~.a n~~~lizplier tc~ c~~tait~ ~:~~~~~~et~l~t c~~~rl~;~i...."" ~t ~~; ~~c~t scar~~t-isii~.~ tl~~t #~ry~t~~c~ c~,tilc~ not ,~iz~d

7


~;c~t~~~~et{::~nt Gt~t~t~s41 ire f~{cfritivi tc~ f~k~ can tt~i:; c<3s~, es~~eci~rlly~ :~°l~c~r~ ttl~;t•e ~va~ n~~ evider~c~ <~t tiie

tixi~e cif"cc~rtlt~lenct>n~~t~t >t~ t}t~; e;~~se f~~t' tt~ti~~~~E~t~c~~?ri~~ic7r~ cat ̀ ~f~~~'s tt~.~~l~ sect~c=ts tl~~~t 3 ~~ks<~ri

ti~~oulcl u~~ khc tr~~c1~: s~cti;t: i~~ iris 5~~`~ }te;t~~1~~l~ati~ s sirl~:e tl~~;~' l~t~cl tiErt ~,'~t been rele~scxl ~~~°~~t;t~ tilt.

:~<zyt s+:_i5 fil~;d. `~~~ .~tiar~~~y` I~c~L ar~~ C'o~t 4t~h~~aissic>~~ u€~~~~LI =l~zc;io, 1.:~~C', ~~+. 1 1. ~l'~~at i

..s~~4~~~r~siTtr; is t,~at to<ztil~c+~~ c~t'~(~:i: 's i<ie-~ ii~-t7~, rea11~~,~;~~ hette~~ th~~r~ ;~:~t~~i>t~e (~~.~«~ S~~c~111~Ic~s t~~~ ~~

i~~~.~:;~r~3c.~lt ~~~<~: i~a ~1~~;.k. ~~St~~~1Ls ~z~z~~e ~~~:~re~~ ls~ ~c~t~:i~ti~li~~ „tf~ro~~~ ~~~c~ct fns;ne~~ aft~:r ~ia~3."

t~>e~e ~~f~t1~~ C~ti~1~~~ts~~}rat l~~cic~;~~ tc~ E~~: e~`~tt~~~t~cf i~~ ~te:ter~-~tii2icl.; y~lletfler a 7»i2itipli~r

[ll'.CL SìtiT'~' I,`. ~~~Ilt.: C5:S~1~~:+ C)~}tf~, 1T~t;t~. .~~ ~#1 1C1ì[t'<)IYI, :~tl~}l-~! ~1~ ~.?'~. ~`f"t~', ['C~ll~(ti ,:xiiliP,4'tC~ ~it.t`tl.l ~~'

v;'^;i~,;ti~~ ~;(,?llll ii'.., [l~ii314'~~'• (zt"v~•slt~ff~~? C)(lr.Il~ C~II3TTI:i ~ti1C{ ~t1~'~:ti~?Tl ; t„L)I.IC

l~<.!'C~ili2l.:2I~ IT1tlIi' ~ls'(iS"t!t% t:'

f~l.ttl i1(}ll~C:j i1~1;`c, ~7a:Gii ~)i:~C~iG~s i~~ ~i~3Sc:t~, ITi ~?alt"[, <;S1 I~ c:' ~'~ìl~E:fli:.' cl\`~i~<!~)~t .:'f: (fit;. 1i11?~ i;1f Y~lt'

t.(SETI{31l'1lC'Ci?1C'il~ C}~ È~tC ,3I'~~F~3'~iY:iQil 47~`~<1€IIJ~ .~ii:~:S4~i't. ~ t.iY~'C\` l', ~t74 I`L511~~5 GF:'Y"I;11I1~Y i iltlIlill ~1C

~ittric~ut~~t~ls:: tt? "if~f~~~ic~~r {?+:r~i~~#~~i7aiis.~ ~~` c~c#"~t~s~ ~;vtFr~sel" i~~{~a ~7~c7tt~~tecl a i~~~r~v t-i~~~ro~is at~il

t?lti)S't~t.tS?~1 ~TE'l~i`ti~i~. C)il i~:~?:.l~f )~ ~ 1C::~:~t]il t?~~~1~'~~x}S C~zl~;li`~ ~iT~(.~ J~i't):it.Cllld'C~ .~,i~~ti~,(}Ili;; C~tl13?1ti 1VICt1

L,i~~~€l~lr ~~c~l. 4'~~rcju~ }~. E.ct~~iy ~~.. 134?. 5.C`t. la~i~, 1f~7~-1 ~~Zt?i(}}.

~[) ~:'t~.4:~' C~~' ~:~~1~ d'iil<,lliil~ 3[t's_tk'~i~, 't~l~ T'~:ii1~~5 i~E~E:i4llt;t~ zClij (~lt: ~~'}~('. O~ ~tt ~1t'.t-~i1L:~'Yl'l~il

t?f:1Y'vt~:ll j~lfi.' }.l(~C}E[lc.'~' ~IJl~ ~'tT:; i,ìti:IlE.~~ ii Cl.Elitl~l~:~! t"~~~ I:'± i14~,F;S~~~3(1' ~Ti t~ll:~ (il~iZlil. ~~~d<1tl~.C~.?(I'i,

til. Slt~ ~l~" A9[t~~.;~iic3si i~f'~'ert~~ir~ t=.x~?ens~: I3et~~~~~~~~~ this (;a;;e tirni t}~e t_7-Unit E3rar=.cls

Cis is ~~~~it-

'leek hz~5 .~i[t~ti~~ted tc~ tf~is m~~tt~;~~ fsc~ fey t~t't;4ri~tin cc~st~ i~~ this czi~~ ~~~~cl le<►vi~~~ tt~

r•ez~~airiii~~; ~~~ts to the C~-t~nii ~irands ~~, ̀ ~I~e~ fluciic~ a~~~+itr~tso~~ ~~enciiz~~ i~~ :~eru ̀ ("ork.

3-fc~~~c~v~~~, J~it.:kst~r7 },~~oE,s~4i:s x~ "~t:llj() ~~lit ofc.i~st~ l~~t~~~~er~ t}~is ~.~rbiti~ation r~~att~;r at7~( tine Ci-t_~,aif.

Et~~ar~~ts r~~att<:r~, ;~~•<<uin~ tl~~~t thef-e, t~r~; r~atlti' x,c~ly t~~c~ <~rl~itraEit~r~s: t4~is ca~L, inc(u~iin~ Jaek~~u~'s

~:c>~~~1tc~~cl~tir~~s tf«ait~5t ̀ il~:~k ;~ncl third-pax-t4 ctairns ag<<itlst the €';r~~r~,kas ar~ii ~~'~,-sc,eki, as~d tl~e


C;-(_~t~i~ E3r~}nc3s <~~~b~trati~~r1. t.}f~cviirse, Jac~sc>rt is i~nt~ria~~ tl~~at this arbitr~ati~~n i~ ti~~ ~•eslilt ir1'tE~~

c~c,rr~ti r<~?it}n E~i'tavc> arbitr<rfiF~t~ ra~<atte:rs ira>>c~1_~~ ~~~. ~~ziiltipir; ~~rti~:~ end n~ttr~c;r<<u:~ issues, as~d ti«

~1-i ~l~~t f3r~in<:t~ a:~~7€t~.r ~~~E~icf1 ia~Lol~res bait a ~in4_=te clsAir~~ brvtis.~~it by .l~~c~ ~3r~ clrtr~t `~le~~; hr~;at:~~e i

tll~ (3rar~c~ I_.ice~~y< i\~~-L:~tr~c~~t (1«~trt } ~. }'), 'I tic }>z~~:~erit c~~se ~s ~ ~~~:ry {~on~~~le~:> as c~~in~~~~~~ed

~~iih trig ~ f-t ~€pit I3r~~~r~~1~; ;11<ttter. i~~ ~~r~ exs~cz~pli;,~, is' ~~~ct~s is c~r~l~~ i_~r !hL l;es~rin~.F. i~~ rhiti

~~st~ii~-t~tic;~i, t~~is case tc~c~~ ~~ ~~~~}~s a.~it17 ? 1 live tti~iih~5s~s, ;blc,r,~ t~~isl~ tl~e c~e(~tl~itian test ?non` ~~f

`~ t~i(~Lr ~,tilt~t~s` , }-,'•~~~ fl~G ~~ur~f~ed~?us exl~t~,it~. ~c;e lt~i~~i,tz f~~~~u~~t1 (I~:~f~il~'s;. ;~1- i~}1er~rtt.tr~:.

~lc:~~k'S z~l!cTt~~a€i~~r~ ~3i~~;~s~ iL; lair' <~nci ss z~s~c~}?te~:i.

i1~ . t;~~:;~, ~ti~- ~~ry~~~.<?5 rjncl 1~'ts~~~l~:i <~~{r I:~itit~cA tc? ti~~ir ̀ ~~~f~Ji~it<°~l fZta~c~~i~~t~tc~

't~Ec}z•x~;~}-~s' E~e,~s ~~l~i Cast

IZ4:~~~,~:, stE~7r~; ~: 1 i {}, t~~ dtl =test i~~ c1L~~r-tt~i~~i~l{< ~'<~sc~t~~tfJlt' s~i:fc~rrt~:~~:' #e?.•. ~1~; r ~ i~.tl~~r

s~i~,4Elci ~~itlr~~ss ei~,~it f<~<.~c,i~s:

~ ~ } I'it~ tisY~~ ~lr~i! ~<t~9j}r r~c~isit~~c#, tl~~: ~lc~~~:it~- ~r~c~ ~lii"tic~tlt`~ {rf the c~t~LSti~~ii n~«It~cl, at~c!

tli~:• 4~i11 re~~t~ii.itc t~, ~crf€7T~~t~ t11~= 1L;::~,a1 se~•ti icy: ~~z-t~~}e~-14~;

{_') CI~i~ i~~~:lii~c~c~d. t~~~~~~~~~ta~e~xE tc, tl~~ ul?~~~i. 't~~,~~it~ tti~ ~~~~pt;tT~~~c cf~il~~ ~~~z~rtit~i~€~r

~::z~~,lt_~~~~~~s~i;t ~~~~~if! ~aq~c~~u~c: i~~~~~;z~ e~~~~~lc~,~~r~~cnt 17~~ t~1~, ! ~~~~;,rw~:

(~j ~ ~lt' i&'4 ~'lli~C?II7t1I'lIV C'~1<13'~~;C~ tll t~1c liti't~~LV ~pl~ tit;71?~i1T ~i.r~t3.f ~ti,,~;`1~45.

(~) i~rt~ sin~~~us~rt ina~~yi~:~eti ~~t~l tt~~ resu(~~~; ~3~iz~i~~~1:

{ i) 1 ~1t; {IS1Zt' ~Itl"ti~ittiC7ilti 1t11~7()Sf;Cf ~?1` ~til~ l~le;:t11 ill' ~?}` t~'lt; Ltt'i:lliilStcltl~t;:`~;

{t~j IY~~ ~~i:tl~re ~:r~ti {~t~~tl~ crf~th~ }~~~c~te~szctr~~il z~~:IG~ti~lr~si~}} rs~iil? tll~; cli~;rit;

g


(7} ":[ iie ~ ~:~?c;~e~~ce, r~:~~uai:ic~n, ~~t~ci .lk-~i(it~° t~ftfY~° I:~~vy~r u~~ iati4zs;rs p~:r-tizrrr~i~~s~ tC~c.

~~:~-v:ce~:: Lir~~i

d~ j ~~'h~the.r t}~a fee i5 {i~cL~i ~,r cc~z~tir~+~ei~t.

J~~~:ksc~ri t~~i;; ~?t:~t c°i~~ll~i7~~d the rz~t~~~~iaL~lenes5 <~t~tl~~: l~s~url~ r~ite5 t«a ~t~c ~~it~c;rr~~ti~s <<n~j

~7<~t i14~;'~~5~ tier ̀ ~Itis:k, t~:t} :~r~~as ~t~~l ~~+ ti c1cKi ir~~o?~-ed ter tl~c nt~~~7l~cr of ;~ottrs ti~c:v spcTi{ c~ri tt1

z~~<ktter. (,cr~~~,;c~•r. Fie ~?~i~~ c:af~jLct c~t~ s~;4~er~f t~tl~et' +~:r~~~_tt cl~..

t. f~z~~~3_t, t~«ri~: i.c;k~;r,r2 ~~h~s;t~ tc~ 11~~ (arzf~ ~~f `~lc.~c's "f~l<:~cl~: ~~illirtit.~" ~:n[z~ie5 ~vitercE?v

flli[,~l"1tt25 f~'.k:ti t1Ct` LI3CtT'tC~ 451~~ C"ttlt~' ~l ~?~C~C~. t?~ ti€31C' t~'i;;1~ ;ii<; t,~~~C, tt"it~1 Yt`~~~1:"'t1i~t1~ S;V~iti~~l tl7?.c'

CCt'1cSi1?iii'ti71}ii: it<itlli"~; ;li?t~ t~tl~i1~S (.~ ~tI'~2~11) L`:tit'~+; ~7~i'~C3Ti11~:i~ jZUI ~ ~:di17€~~c 1'c~t:.~kl"ti i3} ~"fC`~tiii~j?

41?I~lc~a~lk?i~'.. .'~ i~*. tE> I~iu ~C?~t~L~: ~?t~~tll~? ~()I"C3? Z}~ f~lt til~tic:'S, .~;b(:~;..ti;i <iE14 Ell7`t (?t'C11~iC~~:i~ :it'~4' }t"+'.tt~

SL1~'y?(7t't fC~l' ?11S ~'C~11ici11li)i1 1~7~ii ~)il~i€1~" tS E~c~]~lE:~~ iltl~fi'~v~~1~~i~,~f~. ~ ~l~ f~t`~71ti'~l~C?r Tli)t~S ~~~~€l Stc'

cc,t~~1~7c3411}~ l~i~is ~~i~: iii -Tits t~ti~i~~:i~2~. "E~Ic~s:.~l~_ b=1li~t~~,,~

~I~cl, :~~~ys i~~<,t tine r~d~ictic~~~t4 Ga;~e e~~:c. ~~;;~~~v ""t'>ccttt~ti~ tlj~+, ivii! cfi~:~~_i(~~; ~Ei ;C: st,<ft`~ti ~r~ct

~itt~a~-j~L~, ~:(it:~1t ~or7~riz~,i~i~<atii~li a?;d ~~l.~.lcl hu E}~r~~~f~~.tl tc> <tr~~` ~-~:~tria[ ~ it~r a~~~~~~~1." ~~'}~ii~ it ~~~~~~~

f?.' C3C~7~:l~~t4?~' 4?'~1C'Gft'.:I' ~i~~ Qi ~}7C i'r'C~~i{:~lCl~lti i-1€.7ll~C~ ilL ~3<if'iT~~ll~ (tt ̀ t~t:t;~r,, lt1 a~t~.'t1~~F1FliF C'tISC"_+~(~l'lC.''.+'

~)r '~;t.}IIi ~}~{~i:~ltt'~ <ii ~~~1;~ ~`_itt C~zCL Tll Edlti }}I'ti?t„lt^~~Illc`3, i1C~T1~'C~IC3c:~ti, ?~1c~' Cjli1'? tlft`~f' !tlt: Il~l(l!i'~'

i}j i~t:

I~CFCEi (?tC'~O['t't1c~C~ (].t', "C~`Sc'L22'C:~l'F, "t:C>i~~tl'C'tiCE; ~.'t~~l ~5.i"1'~). )iiS~ ~~lt I'c'\~4:1:I11't Slzf)Jii~'l (ll<ltlt:c'" ltf I~t:it

;S`s:Yt"ii, .`iLiC~1 <i4 I~1t ~U~'1E1:`? 2`C~;l'GiT"C~34t~ (}4' 4!}~'c1i 1~'S:tS G1SC1"d3SE',j. <?t ~~14 ('<_iflgl'.T'z:l?CtS ~)~~\1'f'.~Ct OY' ̀cl13lL1T?.'_

~<iti[lS~~. ~~'~.~11I1, ) C'~:SC)Ti ~1t3: flllt C:3tCL~ <I(?~.(t~<i~?~(' ~~i~1~' CC,f;<li"~~lTl~; ~~1(~ Lti7~?(t;~::~?1<3~1~1~1` ()~ :itii::~l L371"tt

~11lCit:'~. CC{;~~IC(t.;i~ (1C I1C3C_

`~Ictk 1~Gis ~,~~r<x~•<~tely~ ] ~i~1 t~t~i ~~r~~ t~~E~he;~ its ~~E~ri~~u;; ei~st , s~rc_h acs ti~u~e, r~~l~ili~l~~ t~;

".1rt~itrati~}~~ Fl~:ari~~!,~ ~~nc~ ~~tc,t~.l C'c}s~:~ ~- ~~~1~~n~ic5tt ~~`~st P~~(t1~ leach" ~rnc~ ̀ I~.~ternr~l I~~}-,r~~d!tt.(.~~at~

1 ~i


tn'c}5ls" a~ jt~~t ? ::~a~~~~?tes, u~id~r Gd~lli4~~ are tllc: respccti~~e iz~~t,~cts and ri+~~:i~,ts re.flectil~~ tF~L

n~irticu(a~~ cast so~~~~:l~t to ~~~: reit~~~,~«~scc1. ~'1ci ~itrc~n ~ll~~, ~:z~ci~ i;ai~~t}r~y~ ~7f~~c>:;t~: i4 ~~ret<ai;ecl L~~itf~ ~~

~ti~t~rra~~~-y tl~~~~rt c~f~ tP~~: ~~4s~aectiv°~; ec~si4 ~~~~c~ ~.2ri it~clicatic~r~ as ts, ~~~l~ic~~ cast:; ~~;~4r~ b~in~ allt;cat~:~i

b<~ttL~e<.t~ thi` ~~'bitr~~ti<a~-~ ataci Cf-t znit E3~-at~ciw. r~lSc~. ~ ~-e~7 ti~ittt i4~e ~~etla~ticai~~~;, .t~~eks~3~~ ~~-~5 ~~~~f4 it7

p<~~5e tl~t f~~5 ~sn~{ tests st~f`tic:ie~zt[~ f«i• trim tc, ~~r~p~re a cl~a~~t ihat ~~°i {~G~i ~~:~i~~~ cif i~j< c~~~jeet~°ci-t~~

1'~es, ~x~~ti7~i~s <~ik~iJc~t' ~:c,~t: s~~~acttt f«r ~. ~~_trtit°.t~i~~~ rt~~~t:tt=r, tfct~ as tne~~iatic~t~ ~Et~ci ~~tt~>ri~<;;s' t~'~~v~:(

isc~iu. `~~;~. ~ ;.,.. ~,~>. i I, lit ~~rtcl I ~, (.~tt~"t~s .l..1~,<..y~ot~;r t~.~~t~cr t~,e tx7 ,~'~?l~?~~~e;' ~~~~•, f'i7sl ar~t1

[.,:E~cf~se: ;~*lil,mi ic>;,. "l ~~ft4;, €}~ tir~~~;~}~eet~ 4~rttl re.~A.~a'ci ~ ~~~~ r~ ~ of ̀ ~le_e!~ (~ z~~7 «iih ill<.

C~CC~.tl''Sf3fIS} ~;~7'li.~ ~~1t; C)~i't5.i' (71't'Lc']lilil'~.; ~3.1T'~lf.S [f.~~=''t~:~l(1~T i~lt'?~ i"tS~?E'S:~il'G <;i~Ot'tit'"YS~ ~~'.G'ti, ..'1~1C'i14~:'~.

tTii~ Lt),"it4 tjc:t 11C.~~ il~)~~C'.c3C IU ~)t- ~jltilC.~t:C~lll2lt.t'Cii1fU~:#1?, ?11' lT?l~?I'i,'E°t~C'.Fj ~}I'. ~_iett~ ~'<1Ci j~t(`,~14:11, ~'.,1.

v. [3,-tn~,rE, ti7 4t~.~~ci f~IZ, Ci1=~ {~'ls~. jar; C.)C`,~ ~{)t ~'t.

?, ~1c~:Iit~tic~~~. I'~-iu~~ by thy; ar~iit~:stz~~t~. tiae. pa~iies trt~:,~atce~sE't~ll~{ riieciis~~ei1 tk~i~:

i~'t~i(~liiC:. i~lt;ja l?S1 i!1"£~l!t;`~ tfli~t iflt IT1Gi:~:t~3~lC1S1 ~~'«!S ~'iltlt'i'~~` St ~141t'I:t.' fI't)IT1 ~~,E', !1'i)IZT~I~ttlll'tIt3C~, 1 lilt.

"~Lt.~~ 1~, ts~.~l Cfi~lt~t'i~ l0 t~.~'Ci'JCI' ~[tC~t't1t r'S~ ~~€:S C?C 4Y~i'tltit:~ t:'(1[i} ~~1~ !tiiStl~C~:Sti~'ll~ St1E;t~1xiit(?li.

t (~~~,~~~ i~r. [~~~ C}~ < p<atitzA, :~~~~ees~~e~~t rc~~uire<l ifi~.i i~zc ~<.rtic:~ ?n~cii~ttt tli< tlis~~G~t~: "~irii~r ~~7

c<,~,~ ~~~t~c~:rr~4~at f,fti~~rc~i~~tic,ti.:..~~E1e ~~artiEs t~~~i`tt~~~ :i.rce. th~~t tl~e~ ~~;il! 5laare ee~~t~~ll}' ire t}te

C;O`_;{~ lFt [?lk's_~Si1~3ltil. (11i1C C ~}"€tl1? i°s3C~ ~?itT~~''`.id$CC?<`TIC:'}'~~ ;L.S'~ ~~ .~~~li1T I,X. ~`~. jl`tll"si, ~~. ~ . ~#1 Tit(;. C~1t.'

title i~i':i~4ticr~~ ~:~.1 i5 ",'1t'bi~r<~tii:,t~" s~> tE~at 1~c~t~~ .i~+:ksi?~t <~~~+~ ~,c:e4~ ~~~,i~i~l~re~~ tl~c ~;~edisitic>it

€)I'l~tiC~'C~tl1i.F 1tl ~?~:: <i jlt~t;t'c:~~t42S{1.P. [t) ilil~' <ii'~sl~~dt~1~7t1.

`i[e~} k~~f~ ~~itl~dr~~~~°r~ it"; rt~~~z~~.~t Itj~~.l~z~;~;sc~rt tc~ ~~a}' Sleek.;st~t~r~: c,f tl~e t7ie~li<jtc~r's Ices

(i,E.. tt:~.~~ "~:~}st.s cif' ~~T7r;~ii~tii~i~"}ifs t~3e: ~ar~ti~iint cif ~# l,~ ~2.~5~ huh it is entiticc~ tc~ t~ec;f>vez~ its

;.zttc+r~7~vs' f~;e~; ~.~~d ct~s~5 assc~ci=itG~ 4uitl~ ~1~4 ~t7~:~~ia~:~t}n.


~. .~4ttt~r~s~:>' ~ 4~:4 (c~z' ~T't'ae~!_I~i,nte; ,4<i~:ksc>€t c>E~j~c,t~ [e, the recc~~'er~' r>fir~~ee1 tit?ic f~+r

~lL~?~:'s c<~~.~i~;cl. 'I }~e: r•~ic,t~icl~~ `~t~~;e...~,~i;.l~ E~~~iE>i-t~~ t~~~citlwlir~e5 {;~~~ ~~<~y<<tic~s~ ~?#'~.'i~~ts i~~ t,'i~ iI C':~s:

c1c:~e~, rv~tt ~:,rc~~~ici~ (c!F• z~ec.{,l•~:~ry ~>t'atre~~~~~G:y Y~~aoel time anci ~~p~;r~~~s as "«<isc~~}able" u~jrc,~-~~ev t;~ey

t.~s c<t~t In ~~~ ~~z7~~nc1~7~cnt;; ~c; l3nii.~rr~} C_itaii~tlinis (c~,~ ̀ 1:~::~ttic~n c>f't'osts, f}! 4 ~t,.'?cl t31? C~~Ia.

'(;{.i:~ }, I [c7iv~z~~:i~. c~5 tE~e C;~tid~l's~1~ slate. they ". , .are aci~ ist~a~ c~r~l~. ~l tl ~ ta~:.:rtictn t;f ~:~~~ is ire

~~t~~:~ ~~t~t'iiutil~s.r J>s~i~c:~~~i~itr~ i~ i~iT~~ir~ the €arc}~iu cliscretic>t~ ~,i'thc 1t'i<t! ~c~trrt..:." r'1.s di.,ti.zts~;~ ci

a4~~~t ~~. ~(~~% ~;:a~ taiittl~~~:. ti.~ t~htaii~ ~~l~~ricl<R txrt~Etss~i :~~I~ii` ~ L~itr 'tic tli~~ t~ t~~~ tc~i~ ~~Ilol~ it~:.J 11~

i't.~r0!'~'!`\' ~)~ ~~ Gi;'~{~y C.C)t11,5 .,S' ti'<1L't i f ~?SIC %lilt t?~~'~tf1SL'~. ~ ~.;', t i~.i]lC -~~.t)(?t1~';s; f i>T1S"!.. ~'1;., tiC. ~`.

~~ts~~~tis, r::'~7?4. '?-,:, `,i~i.'.~I i ~~~. l'_{;1 (('lit. (?~s,t. C'l, : x~7{~. §r)E~S-11, I I~i~ c:<t~~~ ic,u~~i~~cl ~tlti~c,~{~t.; ris~~~t

t)ill'Cii~ iti flll.t~?IE)~t~ ;il'u``tt'.StlI~C~ ils_; ~ ~tii~ i[i'.ii l["_f\ ~'(. '~S ~.ttCii. ̀ '7~t:c'~~~5 C:i)tit~,y;'i~z, ~E"i3'v't.'~ iit11~'.:tfl'~

i3'`;lF1'1~}lC:t~ (:{}Riti.li~l' 1t: i..'f_~~'S'.l~cl~)l'.

=1 r'1r~~}~tr~~tiiyt~ fps 3E~~l:r t~~,:~~_ .lar~s~~~j c<~€~tc:~itis il~~~t iF~e ta~~~i, ~,ad attcf 1~>~igii:<y.

t:~;~,~~~7s~:; ~, `~Itt~k's c}~it-<3f_t.r>~~~tt liti~~:ti~~t~ tc°2~x~~ :~~~oulcl t~a~ ~~c sf~i~te~l t~~ ,i~i~:k~~rz h~~:<~~,~~:• it ~1ic1

ritilt tali t'(ir€'it(<t ~;c?l1PtS~:}. .~ ~It~!~C' ~t:~)e~t~iti~ 2tt'e t'<.i'c}1`c:t~l~)~f.` ~~~'C4;tts~ C3t~•'ilc.~:k'~ :rt:l~>l~iti' i:s i)~~C till

~')()Cti~;i ~:t7!(i3Sc:1, ~iti (II~Cil4'E;u c`l~it?yS:,

~i. ~ ~:stlaoL: ,la~~.~=i3t~ cl~i~~~s t4~~~t `~;I ".l~t}~?Y,?? ~tl'tl ~ ~,~,i al +;O,ri?~~.~); rE ~'s c~titl~~lti

('_ic.:i~i'~'fl t~;j"~i:'il:~i;:i S)ii ~?~i1C31~~tz~ sti((;~'~: ~;~1C)lt~Cj hz: C~ti".t~llt'iC~, F~...t;~ll2`~i;' ,~ci(:~i'+()i3 t;'cli~flt}~ C~:~~ C'k<t~.T~}

~,~I~ti 4L"ti5 ti.St;t1T'~~14C~ 1X1 ~'ti;?~ O~j~~i~ CCt~<iC~ll~t1ti C)t ~f1c Stl}?jLL! IIl<l~~.c;t' l3? itiSU~ t'4Sf:~li't{1t'4i. .~~lC:~~i)t"i

:it"~Ll~S 1{;tti ~~~'C~:tLF.;~ l~l~"i'~ Iw i1C~ 4()l:t:liCit21QT7 (l( 7(E4 4tlt?~('~~ k11~tiLtC I~Ss~c'IiCt1Li~,,, %f 15 Yli)[ ~~~)~Sl~t~~' (~:t

~tt~t~:i~~~~in~~a iC ~~~0~•1~: r~~a cEv~~~ .z~,it~1t~}~l~ tirncs, by Tx~uiti~~(~ ttmckcc.~Urs,"' It i~ i:r,t ~le~~r ~v}~,- that

ti~i>ulc~ l`~~ c;t c~c~riLcri~, t~~rer~ rf .1{ick<~t~ kn~:~~' t~1"tFte S~tt~j~:Gt tl~:itter r~sarcl~ecl, <~s it i~ r~<~t

Laric~.~mtnc7tt t~~ cc~7ac3i~ct 1~'~stla~~ se ~~~cii~s c>4~ tl~c: sart~e ~,~rl~jeb; t m<€iicr l:~y cli t~~~~ rat ~:stc~~~i~;:. t~~t~r4k}v

r~:,i;~2rcl~:et~4m the ish,sc. t'rc}r-n cl~t~t::~~~~7t pis-5~~~:~2ivis. I~~.~rtlaer, t(~e: azno~~~~t e~;~~et~d~-~! ~~«

t ?.


~t~e~~plitti~rif~~ci ~-~; earc~~ ~~~~• <~ c_~a~ ~ c~#~ kh[s e.«~ti~~l~:~xity <ip~?ex~~~: lc, b~: ~~ecy~ c~~~sot~~tl~1~ ai d wi ll be

t~f (oLv~:s1.

(,. D-~ ~,e~~I ~'vsty 1't~t' f3~acurn~~~t ~tc>t•~s+~e: JExc3~~t~t~ s>~ij~:et~ to ii~v<~i~:.; fi~o~~~ art ~~tEtsi{:It=

t~:-cli ec»~~r~~ vc~r~~lc>r, t~~, t_.I.C', c~f~tfie cost i~f r7~air;tai~~i~1~ do>~;~.t~t~{ rits s~.il~~e<3~rer~t tv t 7e ~r~ci cat tl~s

pc?: i-►~<arin{.~ 1~~-i~f~~~~~. 4reck is er?tit(~d tit tl~t>st dc~ctfrx~~t~.t E~cis~it~g +posts, b~~:.~ttt~e ii teas t~tte,ert~~ita

~~}~t.tl~;~~~ li7t~~~ r~c~~~•~15 ~~~~,tticl E}~. nr~:ci~ci t~~r fh~ ~t7s~- It~;~►riz1~~ l~riuf; if~xdciitio~t?( ~~~~t-}~~~irin.

f;lEr,t~s ~~ouI41 b+: ~~s~<:~uii~cct a~lt~~'c'}t ttiiethcz' t~citliti<~ti~sl ~Ic~~~~~~rte~tit~ ~.e~,~,(rf 1~~ ~~e~~1!c.~te~ ~~~' t}7t

r~['~71~t'tiTili". .~.5 S4Tf.~r~ its iij~s:~~`S l'i11IS15U~ 'r~"st s,k:t"t ilil l~ C~iC~ {tC~~ (1tGC~ 1(1 Cl l~'iCl'E' ~lit"t}lf'I' {itli;Ui31<.Ilfi, <

l~l<; +.IC!i~lililCil~~ ~ Cl"t'. S'ti}I'~'i~. ~ ti: l~i~~ a~~ [S~llt: t4`~li tC)I' ~1C)~:~tI14~ EJf (~aCT+::LlI1l.iltti C~iill;lr, 1t~L 131t~lltil Oi

\laA~~}~ <'r} (1. "I ~~t ~#t'E,it~ atit~i~ er~~I cl i~~ ~~tt~rch ~~.t~ t3~e ~t?si-lt~~trin~ E~~rz~ls ~~°o rs: r«}~ '~Gt ;:c,~~~plt ed

bl~ tli~ I)-!~ i~~~t~icc c~t,t~. t}~ ~~t<~~~c~; 31 , ?(}1 "~ i'13~re.f~t•~:, al( ~,f'ts~c ~?~~ c~~st~ ar; s~e{:;c,~~et~71~1~

i I'<rt~nt _3itc~r~~~~~ l~~s: ~`~tec:k'~ ~~,t~Pz~e! cf}a~~t~l[~;~3 it p4~t<~~t ~ittc~r~~cr to cictei'~~?in

~S~1~iI 1t1i~~<li:t, if <lll~:''. Cfl<. ~~iit~il~ t~(~11i4~3tI {~~~~s~itlr:C~ i3} .~clt;~iS(tSl, iTl(~ i'~.j~:Cttli;t'i~ 11l Ci1Sl:O~'tI-1'

C?(i~ t.l(11~ri1I5~ ti;`l)UI(:~ ~1 1Vc; t7Ct ~~li ill"~?tlt'~~ii)=t. ~Il <1L~(i~~Ittil, $41 t' ~1~~~~'tl~ ilYtC?I'i1~ :' l'v':;~1 CCII?SI1~ft:C:~ Clil

t5`liC'J ?~ (t E~fc 3#~(:1'E(S ~;TICS ~lt ~~r ~1T1'y ~)~1C~:t1~S iTit4~~li ti~f~ ~~ ei ~t<i6l~ S~_CCt;$S c ,iti ;, ~ }1t'.S~' Yt;~~ fit'c:

t'~:C4~~C:~'Z~~~t',

~:. X31 ~c•~~~ittri~'s [ e~.s <~r~~l ~::i}std: J<ic~:5a3~ ~: ~i~t~:.ra~is Lllat ̀ ~Ic~ek is stet G~~titic:~i iii

r~ct3v~r ~~tti~c~tcys' i~:~s. costs {~r c~p~:n~es ~~~c>c~i~~te4 s~~th ity ~x~}:~`i. [~t~€t~ Esl~~c-kl}~cs~n. ~~~ho Sleel:

c~~u~c t~c~t t~? ;~tll is ~~ ~viix~+~s~ at t1~e k~e~rit~~. Sle.~k'~ resg~c}ti5e is that «~1~en ii t~sc~3trtc: c.lc.~~t~ zit tf~L

1~~~:~~E~i~~t th<3t ii:; tt5tif'y~iit~ e~~~ert, I~r. E~t~~~~ta1. would t>c ~t~i~ t~~ t'e~~~ ~ttc~ !t~ ~tll 6~reas off' t~c~~~it;} f~c~r~~

Jt~c:~.~ c>r~'.~, ~c~~t~lsef, ~1E:ek d~~:ictwt( Il1~zt E3lac;kbt.trr~'~ ¢es~irt~~ir~~~ ~r~~titi ctuz~u~atiue. I Ic~t~,~et~,r. ̀ ;leek;

cfi~~~ttnds tki~~t !}ie~~~ ~~~<~s ~~o ~~~~~~~ c7~` k~t~{fir-vit~~; t~»t }31<~c~Cl~~trn w~~u(d tic s~utt~ul~~tiv~. txi~ti~l c~~uiice.~ f~.~i.

I ~~


Jacksc~il c~}I~~~~letc;c! ~~i~; ~{t~c~stic~nin~; c~x~ Cdr. Ei~~rs~~l. Ln tide-~i~ ~~#'thG~t, t ie fees ~i~~c1 c«pis ~~itrilicrt<~~~1~:

t~~ I31<~cl~:b~~r~~ ~~ri; r:4ovc~ral~€e.

ii~~~~~~-p~ar~iii~~~ thy: ~.:az~cl~isic7~r1 fri~tt~ the I~itei-itt~ ~~~~~a~-cl t~n~ b~ise~~ ors t4~ie 1it~c~;~1~~, ~nci

~i~<ll~si~; ~;et t4;,±-tf~ il3,~~c., t.~~e lr~?itr<tvi~ E~c:s~shy ~re~er~is a fi~~al C~~t~ci~isi«ai f}~<~t:

(. `,'1~ .4~<~S (:!'c!t[t`f C1f til1S'ct~7~?Ct-t~)t~liiClC?i {?~ ;`)~S:`N: ̀ * ~Iiti.~C S~4C['t'i ~?`; ,~ilt.M.`+t?tl iti

'. :~(<~c~"ti c:(;ii~~ t~I't-~r:~;:~~.'i~ ~v Jacw:str,~ of ~~i~ iitti~~ vf'c~,r;fic~t.~atiaiiry «, :~il~:~~: ±s

~+I~„C:~i~ti c:~41?fYl C7~ Cls'}~ :L'•f1S~)it'€;C? ~'~1` ~:1~~:tiiiri i5 ~F~i~~''~i ~ ~',~~;

-~. `-~~e~k`s cl<~i~~~ c,# (,r~;a~it !_>} Js~~ksc>t~ c3t his ttr}r~-ti~~~lt~~trc ~4~,re~~tt~:~~t ~~itl:.

`~Ic~_k's c.iai~z7 ,:?i'~ic~j~~st e~~ri~l~nt~~1~ ~i~~ .=t~c~sc~tz is (i[?A~I1 l~i~;

C~. .1<~s.k:;~~~r~ ~ ~1ai.n il~<ti tl~e. F~>~~v,~~c,~ ati~i ~I~:,.k f~•::}itciiia~~~tly i~~i.i~.~~~f~ ~,.c;~;sctic~ ijitc~

etiteriz~A! irate, ~il~ ~~' ~.[ <tr~~i irti~~tii~s~ i,~ ~~eek is I)E ~`~1t~, ~; anti

i'. )a~~;~~c,i7's cl<~~rii l}itils ifre ~.ry~~lc~:rs i~ri~ ~d~l7~~1 tilti~ ftd~~ci~?r~;` -~t~.~tiE~; to ; 1L~~~ itlr._I

,E ill. Y:tiiYll t)Y [tt~'it' ~I'tJ'~S ti115312::tt1tt4',~;P17s~'TII `)~ ~~G:f:'~ l:i ~)f',~~'.~.).

~i. Sleel; is ~~ti~ar~3er1 the stst~~ L~f ~ I I,69~,?~7,

`1. r°~[i ijitler ~:l<~ii,», cc}u~~t~rci~it~~s <~tli~ de~z~~zc~~ls pi7r x~cliet ;~,e C~E:'ti~f_Ij.

~~


1t`t. <~s i.f~e }~i-ev~~i[iri~ }?<~rtiLs, Sl~:,ek, tii~ F:r•~-~~~kc~~ ~inc~ Lt~'~'scticki ire er~titied tc~ their

~~c:s~~ef~tiv~ i~easc~n~~l~Ie attvi7~~y'4' l~t:y Utnd cG}st4, ~~~ 1«~c3~vs

— - ~~c1Ct

--~ ~E,E:y ~ {?SAS ~~ 1 Z3I !~

~+____ .

-~~ — 41uck _ ~ `~~~,79?,. U 1.f~3---- ._

-~

~;:i25.9~41.>3 j `~~ 3 (~3.~~13.3t~

(![1C;~L1Cti:S ~.~) {t1~Zti' C~4:t~11C~111

i C(~I1tiflf~'.u17LVI

.~f~~'~~ ~t'E'.S (}~

j ~ f~~~~(Ei~7lic r) `~ i 1 712.E=~)

i k,t ~ titi'kt]ti `~ I 1 ~ J`~C~ U(7 ~ ~;fi n~ 1 ~7 ~ `h t 1 ~,{)f11 ~ ~

_._t)1.~~(, `~ ~.~15{?, ~ti~l.~F~ ! ~~3~.(i ~l).~4 ; `~=~,48~. ~ ~ 1. t

__._ _ ___. _, _.___ _ -----------___ ._..._.. ----__-----__ 1___....___ __--

r,

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~~,~illia~~~ ~ [. ̀V~;eclle, r~rbitr~~tc>r


[`f.l~ A. i & Fr f~ i ~~ ['~ ~ t_ ~r f~ i..i YY :~s ~~. R


JAMS

ATLANTA, CrE01~CTA ~N~3 NEW YflRK,1`.~`~

SEER AUDTG~, LLB,

__~g~inst --

~L7RTIS .~..TACI~SQAi, III>

.~~~i

~:U~tT15 3. ,i.ALK~C~N, tIi,

__~~dfllSi -

SI..E~~:. f~t_I~I~, I.I. el Ctl.

Ciaimaat,

~~s~c~ri~'Fes~t.

1F1tvI~ Rif. dos. I A~~~03 t 7b d~ ~4f~0(}333 ~

II"IT~~I A'~YA~GD~

~~un~e}°Derutis ~. EganL}~n A. She~h}~~o~z San~ste~ '~~fyst~cki ~'.C'.COQ Rentissat~ce C:enter~ Suits 3~~~I~~troit, tviictaigtan ~82~~- ~ ~ 1$

C'~rrrr.ret fc~r Gfcrfna.~rtt crt~~.~~~pon~errt SI~~~~,~u~Tic~, L~.0

fit. L-3ruce ~3~c'~n~rle 3u~~ t4loonF'attl "~`~ir~chero{J~rvc~y ~c~t.~b~:r~' ~3~r~r2 110 Potomac Strut, I~€W

Fitch Fic~c~r~7JasY~inp#ou, i?~ 2~0~7

~au~tset,j~r Kes}~gndent c~r~d ~~a~r~iant C°urtts J, .Iacks~r~, ltT

Rt~bert I.7. Sh~~€~~r~Sh~eh~z~. & ~ssociat~s, I~:L.C.

l ~b0 Walton Bs~ulevai•~, suite 1~2

Rochester Hi{is, Iv~chiga~~ 4~83t}9

~.`oa~nsel fvr R~s~eantf~r~~s Micfta~l:~. Kr~,ywkr~, el~`~rkt~, h:~-yrukc: cancl,lasc~n I~..~'r3~~kca

~m~ ~~a~so~~ ~~


Arbitrator:William ~. I~eedt~E3a1lard ~p~b~r LLC9~9 P~acht€ee Str~ec, Suitt I t?~0At~an~~, G~~r~ia 30.:~C~~

aye ~~' ~c ti n: Nest .t'a(rn Belch, Floxida

~lat~ cat l~ ins Av~~ard: h~fay 2, 2{l3 3

Wrote a ~1 Bach ~ ra~c~

"~~ac unciet~~igc~tcl ~'~rb trGtoc }gas been d~s~~;nat~d in ~~:cc~rc~~z~ce w~t~~ ~ect~~n 7.~ c~t~ 1h~: April

l0, ?C31(~ ~~c~ri~ie~ ~urch~~~ ~~gx~eix~~z~¢ be~C•vve~~ Sl~eeic A~dia, I.C. ~"~~~:~k"} ar~d C'.urti~ .l.

.i~cks~ry ~Tt ("Ja~ksc~n";). `i"1~~;, arbi~ra~ioz~ is a ct~nsc~lir~ats~aa oaf t~~c~ ~'bitz~~ti~az~ pr~ac~~~fi~~s

~i~~-~on~ the ~arti~s. 1~§.'~~IS A~k~ftr~ti~n ~~t, ?~tv, t~S~(_~fl~1?{~ ad~rc~s~s ~k~ims by ~tee~ against

.~kd~~SCrla ~Ctf;

(~) Nli~ap~ropriatitn cif ~cade see~ets ~t ccanfi~~r~tz~l inf~rnat~tit~r~ cif Sl~~k ~3nc~~r the Fl~arida

~.1F~ifar~~n Tracts ~~cceU ~etr

~~j 3r~a~h of J~vksc~n's ~c~uciary duty° a~ ~ ~~~~t~~~h~r ~n~ ~ir~:tcr Qf Sl k re~arcf~n~ thc; Sleek k~~

~fl ~~~cr-tie-uar ~"~T~.~,} ~.~at~ph~:~ne. c11d ~y .i~ ~ it~~z~'s ~:orr~g~s~~;~, Siv~;~ t~u~i~, .L,~: ~"Slvt~"}>

Vic} ~'sv~9 c~rn~pira~.}~;

tJ) ~irea~#~ ofhis non~i~cl~sus~ ~~reem~r~r vr~~h Si~ek; a~~

Vie} ~,i~just ~nri~hm~~i#,

l~ric~r to #die h~~rin~, ~te~~C ~rith~r~+~v its c~~r s ~~'~r. Cgrii~u~ i~~i~rfer~n~~, via~~tion ~f t~~

1_:snh~ct~ A~~ and ~"r~uc~, misr~pres~€~t~t~n as3 ~rr~i~~rnent,

.arianta Fi at v, 2


JAMS Ar~itra€i~an Rif. Np. t44C~40fl~3 ] 4 asserts cl~tirns by lacksan againsk Sleek and

l"tespc~nc~er~ts Mark ksylvko, .fason [~.ry~.~ic~ and ~~iich~el Krywko (cc~ile~tiv~~y, the "4Cz}~rk~s")

for;

(a} Siee~;. and tk~e K.rywkos h-au~~zt~nt3y ir~~lucing 3ackso~ to ~r~ter in the ~~~~zzttzes Purch

A~re~n~ent dated A~3r~120, 2t?l0 ~ch~ "SSA!") ~nd~r common lave; end

{b} ~'he E~.rywr~:~~s ~r~acl~in~ ih~;ir ~cicacizr~ anc~ cQntrac4~~1 dutiys ~tvcd to Si~eS. ~nr~ tc~ Jack~nn

try #heir ~r~~s trismart~g~n~ent ~?~ ~1e~'~.

Pr~c~s t~ tote ~i~.~ri~ag, J~,skscrn s~r~i#t~tlr€,~ his ctai~i for fra~ac~uY~~~e i~~du~.~i~~:~~t cif ~~~~,s~aa~ ~c-~

eater intrs ti~~, S~cuz~iti~s F'~arch~se A~r~y~'ients t~~d ~Jpec~fiz~~ Agr~err~cn;t ~a vioia~ion t~f Etta

S~curit~ies r-~ct c,r l ~~3~_ pile th~r~ ~°~s a~ ~~~acting i~t his l~~~antf ~'~r Ar~itr~ti~n in ,tAtv~~i

,~rbitr~tic~ri Rif, t~1;~. 1 ~~Ot7C~C333 ~ 4 ~.t~aint Ex. C) +~f ~i~ co~ra~vn la~v cta to ~'~r fraud in the

ir~tzcent~nt, it dvilt c~ev~~ih~tess t~~ addressed I~er~n.

~~lr. Gre;~ary 4~I~~~;:k~ ~~a~ ir~itialty ~ ~.es~andent in .~~I~ri~ ,Ae~tr~tic~n Ref: i~io.

i ~~i~{3003:s 14 b,~t vas nt> i~n~~er a ~~rt~ €c~ ~~~ ~r~itrat ~~ ~s a re ,uli ~f the F~~?ru~ay ~, 2~~ 3

Partial Final ~l~r~ec1 r~: ~~s~,~r~~d~ni ~r~~~~ry~ ̀ ~~~~~~ki`~ 3~flo2ion for Stars~t~~ty ~tr~}~et~t. ̀ ~}i~

Arbitr~tc~r fi~u~~i that fix-. ~r~'ysaclCi ~va~ er~tztl~c~ to a,jt~d~ment ~s a ~7-~ats~.r of lays nn G`I~irnani

Ja~lcson's d~r~v~titie cEaim of brea~li ~f "fiduciary duty, the ortty Maim th~~-re~ainin~ a~alns~ Mr.

l~vs~cka.

~'lenary• arbitration 3~earing sessinns ~r~r~ conducted bet~re ~e ArbEtr~tc~r in ~N~st f'atm

Beach, Florida, at r~°hich e~~{~enc~ ~v~~; s+adu~ed tin ~'~ aar}r 18-2~, ~~2~ ~S-ZS and can ~ta~l~ 1,

A1i~~f~ ~iAA3071 v9


21113, d~rin~ ivhi~.h thy. partiew pr~sen~e~l ~ s~bstar~~ial num~r c~fdc3c~mentary anal alher types caf

evidence and tesrimnny was taken frt~ra~ the fc~~toiuing fact ar~d e~aert w`stne~se~:

• Re~~t~nden€Mark ~:rywka, thief E~:c.~uti5~~ Officer a#' ~l~imanb`Itesp~+nder~t Sleek;

~ R.esponcien~ 'rrtike Ks~}~~vko, ~;hi~f ~~n~raciat C?ftic~r cif Clay ~n~lRespoa~er~t S~e~ek;

esgc~nden: J~s~r7 ICry4~~ke~, ~hi~f C1p~ra~ir~g t~f~ic~c c+('Cl~izr~antlResgvnd~~~t St~~k;

~.es~or7~3~~t1~l~irn~n~ G~r-ti~ ~~cks~n, Ill {"J~~~:Son~');

I`)a~~c~ t it, fc~~tr~~t' Nia~k~:ting ~3ir~~;tor of ~I~~k;

Cdr. Fanzk ~~ursa~> :~n ~x~er~ «=itrae~s pt`es~z;t~~ b~ ~le~~C c~t~ ~e issue of ~i~bzrity,

F~oiia~;t C~r~z~iors~, ~:~'r~, err ~:c~~ri ~vttness ~r~s~.r~tca~ ~y ~lt.~4~ ~fx t~~ ~ssu~ ca~d~n3age~;

~'rr~~c~ry ~~kl+~s, Cf'~V ~ business ~n~ ~az~aanci~l advi~c~r to .~ac;kson;

~ ~i~~i~e {"?~ti~.i~i"g t~~~~ti~ (plus c~~~i~nated t~stizazr~ny from h ~eposit}s~ci~, ~vhcr runs C-

L slit ~.~ccyrJs and i~ '~Ji~:~«F'~csident ~~` SI'~~ f~~~iz~, ~Lt~ ("~iv1~ Audio'"j;

m Jasor; H~rcii ~p[us d~si~~~~tec~ €~;~Ei~z~~any ~ro~~i his de~sasi~i~n), why ~r~rked can 3h~e

heac~pha~es a~ issue i'o~~ bath 5te~k ~ ~t~~~ ~~=.acii~; ~ri~

~ E3r~~d F~izast~in, fprcn~rl4' ~~~o~iatec~ ~vit~s Li~~~tl~~use ~'i~~ncia~ ci rr~~?r~, r~:~nt1v writh

`~'~~~n ~1url~wi~c ~n'C~,c~ain~iacnt.

~z~i3° ~e~aysiti~n ~~stzrstony~ a~~ss dessgrs~~cd f~~~ the f~il~~vicag in~i~~~u~l~:

Brian N~h~. Fre~id~at a~ SM5 .~.udi~, t~ctt~ as are individual an~1 ~s a d~si~nxt~~3 3~~b)l"Cj

~~itress F~c~n~z StviS ~u~i~;

~ie~u Reid, ~ gra~hi~ desis~'+er~ unc~~ ,varketf c~~ tie h~adphc~tt~s at iss~.ae for b~ct~ SlCck

a2z~3 SMS Audio;

~ C~t~gc~ry VtTy~sockif ~z Sl~~?~ I7i~~~ct~r; az~d

~ i'✓9~r~r~ ~-~Ifawi, ~e~ic~r Ap,~1i~.tz~sn ~~~ine~r ~~ 4+r~icrocip.

Akiar~ta#14q~£~7f vi


Robert t~nd~rs, ail ir~c3tastri~I desi~kt exp~.rt ~~v4tr~ess, ~~s~.s pr~ser~~etfl by ~ack~~~

through Otis e+cp~;tt ~epQrt.

1'h~ parties s~btniit~d pre-hea~ria~~ i~riefs and ~c~sf-hearing findings of Pact ar~~i

cancIu~ic~n~ of t~v~~. Counsel fox each party vv~z'e cuZusua~3y skilled an~i ef~iciont, ar~d each side`s

~as~ was t~Qr~ug~sly d ~~i~oet~us!}~ ~€~s~nt~d and ~gu~d,

`~hG Ar~~itra~nr has ca}chilly reviewed aztd cc~ id~ret~ the testi~~~,tzy, the +~r~uzn~ntary acid

uthcx-evide~c:~, t~~~ ~lte~~2i~~;~:~ aid ar~um~n~ti cif cour~s~! ~ t~~e bra.-~e~rin~ i~riet~ ~cd post-

~r:~rird~ findings c;f fa~i at',d c~racicasi~~rts ~f haw ~tt~d €'€~~:~s, ccncica~l~~ std issues ~~ f."ol1a~~~n~

I~t~r.'sn ~~warci. "t'hi~ t~~.,~acd 3s a€~ Interir~~, ~ai~~~- ~~.~ a ~°inal, r~~v~rd~ .ai~s~ ~e~ti€~:~ Z.~ of tie

<~pri3 1 ~, 2~3IE1 Sec~~rit~~~ P~€rc~awe t~~re~:snent betor,~ecn ~(e~;~ anc~ Jackson ~rr~~~ides that "[t]h~

~re~,aii r ~; ~Sarty in ~~tiy ...arbitratign shall b~ ;~#tiled c,~ av~aa~d o~re~sanabf~ attt~r~'~~ys' fees

end casts, , ." The t~rb~~~~i~r i~nt~rp~~~ t~~ ~r°~rd "s~ I:" ~:t ~~<~tis~r~ 7.~~ ~t~ mein °'rrs~ss~.,,

5in~e nr~ evideti~;~ ~t' tcstimc~rty r~;~~'r~in~ ttr~ roes' attc~~ney~` fees t~ ~t~s~ was

rP~~i~~ed ire the rec:ars~ ofth~ fs~a,i h~arir~~, ~~~t~t ~lcek ~~~~ J~~ksoz~'s pr~s4-h~arin bx~~#s r~q~~esz

~t~at ~h~; r~rt~i~-~at~r deterrz~ine the ~~t~t~~t c~Fr~as~n~E~l~ ~~~tc~sn~ys' fees ~ttd c;cssts fk;at art tc~ bw

~wardeu tc~ them Fps t~Y~ r~~~~~:oiuP fir:°~°aili~~ ~~xety: '~s~ s~`~vkc~s` ~~~t-'Rearing b~~f requests

that the Ar~itr~tc~.r ati~~~~'d ~t~c~r~~v~' fees and ~€~s~s t~ ~1~;~:~.

7't~er~t~re, i~~ ~~xbitr~t~+r r~tai~Ys;jur~~zc~ion in t}vs arb ~atia~ fir. the p~xties to subt~titto

the Ark~icr.Ytor rl~eir written ~ositi~ns ~n the ~m~~rn€ c~f`~~sst~~z~b3~ atte~rr:evs` fe~~ and cosss tc~ be

a~~~r~~ti t~ tie ~revnilit~g paz'tY ici ~~c;~rd~n~e with tie c~h~duie set ~~zt iaa the ~or~clusic~n, after

tivhi~.h t~Zc A~bit~at~r ahall ~n~~r a Final A~~arri vrhi~~ wits adc~~t tie herein findings 4f ~a~t ~n~l

Atia~t~ ~4Adv+771 vt


~:.on~;lusians cat 3a~~r tYnd shad include t~~ amourtc of tie r~as€~nabie attc~~ney~' fees and costs to be

~t~~~{~~(~ its t~1C j3t'C~.`#31~it3~ ~~7'~

This Inkerixt~ ~Ltuarcl c~nt~ins st~f~m~~ts a#'facts fraunc3 ~y ~h~ A~bitrrFztar to b~ ~ruc aa~cl

n~ces~ary t{~ this Aevard. Tyr the extent c~~at this recitation mays differ fmm, and dies rtcst include

r~f~r~nce to oc az~~lysis cif every et~~n~att cif, acky party's p~sitit~n, that i~ the resui# of

~e~ermis~at~c~ns ~y t~~:.;`~c~itrator as ~c~ ~x~e~abili~~~ r~tev~.~c.e, bur~e~ Q~'~rc+c~~ c~n:~.is~~r~tzc~ns, 3~ga1

~rin~~~~i~1~.s a37d ztsc w~i~;hin~ of t}ae ~e-ic~enc~, nth ~r~l ~.rFd ~+~xitt~~r, ~~ve '#`car the ~rraqunt ~f

r •~~~~ia~I~, attc~mci°s' ~'~~~ ~r~~ ~c~~ts #u bey a~~~~.c~i~d Rfl ~;e ~r~vaili~g party, this I~xeram ~~~v°ate

r~s~1~~~s ali the ciaians a~~i ct~~°t~er~~airris raised in q~~ ~f~rti~~' rc s~~;~;tive d~:~iaz~d5 ~'~r 4rf~itrati~n

(as ~n»r~derl b}~ 5}e~k's as~~] Jaeks~i~'s r~~ge~t~v~ ~~t~td~~r~~i o~~~rt~irt cl~itrzs prig s~ tb~ fnt~3

hear-in~;) d subsequer~ s~a~c~issio~s. `~'o ~►~ extent that y cl~ir~, ~o~rcie~clai.m cs~ cletrt~c~ far

relief ~s t~tai speci~c~i.!!y ~aa~.~t~ssc:c~ Eter~irs, it is hereby deg ex~.

t #

~3ase~i upr~n his ~i~~iC~~ru~t ~x~et~~~ in cust~r~i h~a~~in~ ~id~ a:j a lic~en>ed her~r3ng ~.i~1

s~~:s;~~slisty Rcsp~ndent ~it~rk ~;.~,~•I~c~ farrr3~d ~~k in I~torid~ in ~L~C35 t~ ~.~~ and self s~usis~n?

rra~alde~i ~arphor~s m~d~ fc~r an indsv~~l~al's eas` canal. H~ t~i~m~ a rn~rr~ber of the company a.~~

its Chief ~;x~:cutiv~: C}f~iier; t~is scan, ~sp~r,d~r~~ Jasc~rz k: ~kc~, ~feaaz~z~ ~ member and the Ctzief

n~~a~~ ~s~xao~; ~~


C?p~ratin~ t~ffi~~r; anct Resp~s~dent l~larklCrywk~`s ~rathe~, R~s~sandant 1'~iiike Ybrywko ~wht+ 1v~s

a CPA) became 6~ zn~mber aa~t~ ~Ie~i~'s Chief~'inartcia.! C3f~icer. {~"x. 123-~2~j, i

t~'Sark Krywkc~ devel~~~c~ Sleek ~aadio's prc3dzrets, the 5~6, tie ~A? and e SAt

prc~cEucts, in additir~n to «rir~le,s~ products that a~~c~mpan ~d these prs~~h+~;~s, Tr~ 1 t6-117, 'I~e

SI!(~s ~irere the first tunable in-gar lie~dpt~c~nes and e~rc~~t the tnncaveticar~s Hon~are~ awarr~ a~ thy:

2t~(}~3 Cc,~~w+~~ner ~;t~~r~nic~ dhow ~"~.E~"). `~~r, 1CJ~> l3~-~40. "i"laa~ S~~ r~c~ivecl a ~~3t of

Inr~~~.~sti~ns A~,~ c~ ~k t1~~ 2fli ~ t~E~ ~I~cst~. {T~. ~l~j. 'I`h~ hi~tozy of`~te~k cwt its prndUc~€s is

further surnr:~~ri~~ ~n a ?t3{~~9 c~a~rk~ta;~g pl~z (SI~~k E::. ~~; Tr. l~t~-1~3t)> anti ie~ sc~~~, arti~l~:~,

~3. Meek"s ~ ~r~eh #'e~ ~a

In 20t~9, ~le~k +a~~ss ~xpec-i~.r~cin~ ̀ ~~a~l~ s~ort~'~1i~" ~rz~ ~~~s in need ~i ~rcr~s ta, ern«~

c>ih~r ehi~~s, ~en~rat~ ~~ inven:ioty q~it5 existing inv~nic~~f of "L~:~,acy" prc~dus~t~, tie SA,1 t~~~

~;A/~ ear~ud ~rc~duets, a~ Welk as to ~zxisl~ t}ie ci~~el~pg~ent at ~ s~~w prs~du~t, the aA7 ~arphvra~

~h~t w3utd a~Ic~w for .a d~~~r~r bass ("louder rnusia"~ thin ~f~e ~.~~. `Cr. i36-13?, 158,. and l~f~'~.

"1 tir. cash sj~c~~~tfa31 ~~:~t *~~~e~sr ~s the ;r~~ ~+~u~c~ss~ci, ~it's~ ~lec:~; ~~~an~ a lc~t of mt~n~~ i~ ins

I"hro~~~y3~ 1ar~cl ,~~:ft'~ri~s, an in~iiv~~tsa! wha was then ~ N~~~~ ~'c:rz: k.r~i~'t:s bas~.dt li

player anc; ~vh~ ~d in~~estet~ ~Z(~U,t~~IU into 2h~ ~4~r~ y, S~e~~ retained a ?~~v,~ 'Y~r~ ~itti•

brokerage hvt~~~ Mu~tyTrade #c~ attern~,z t+~ raise r~r~ add ti~+nal si.3 million lay aloe e~zd of 2{7~J9.

"fro 13~, 6E}~3-E,t~'3. ~'~u[liTrad~ v~~a~ su~~~,s~tul, but c~€~e of its ce~rr~se~tatia~~s, h~svn f~c~ge~'s,

i ~e~'erena.es her~i~, i~ tte~.ring tr scripts vv~lt ~ "Tr. (Pa~e~•'. References E~erein tc depnsitiare

cran~cri~is Britt ~c "('~tJi~~ss] I)ep. 'Tr. [Paged". t)r~ly one wiiness was de~se~ o~rer mars th~r~

cane ctay. Vv fitness ~z~aa~ Nnhe was d~pQsed bath indi~idt,~atly f"T3ep. Tz~. I"j and as a cicszgnee of

SI~~SS A~xc3isa (E4I p, Tr, ti"). EL~f~r~~zces tcs hcar~n~ exhibits X41 b~ "Jt. fix. _____,,, .`~l~ek Fx,

„ a~a ~i~~eksor~ ~E~. *t

At~~nta #~443t~71 vt 7


~r3ew Grey Cc~lEins, who dv~s Ja~4c5on's btasiness ~~d t"in~~ci~il ina~~g~r. Tr. 13$. Cn 1aa~u~>

7_t7is~, Mu3tiTrad~'s o~~~~~r, Perticha~i Mc~r~t, bridled Ehe Slae~ en~a~~m~nt rover tc~ his brother

.~efir~y's company, Li~hih~~se ~'in ~r~cial. Tr. t3~.

Ire J~i~~aar r, 2f~ ~ t}, reff'cry ~ric+rf'at and Traci Feinst~x~a, ~ Li~t~thcsc~.se empi~ye~, ~.rra~~ed fear

~w~;~rk ~nc~ 3~~~~z €C:r~ tiv~:~~ tc~ r~~t:et th~ith Ja~~s€~~ i~ Neu '~c~rk. Jack$c~~ ~; a ~e13-~;rtown

e}7t~rt~:~:irzment fi~ur~- auh;a his tf1~ Stage s~~rrz~ "5~3 ~~nt." ~~4sc~ ~t the rr~e~iing ~~~~~ Feir~atez~a,

~:c~~~ins and ~~~~ksc~a~'s ~iusines~~ 13iar~ag~r9 l~sec~l~e („t~i~.ki") ~~rt~r~. fir. ) 39. ~r~~.=iousl~, any o~

~ac~;~~n's ~u~ines,~ as~uc~~tv~; ~rv~'essis?r,~~l;~ ~t~s~~~~ as ~?r, ~~:a hid ~~urz~.}~~d ~ ~~~c~~~~~

Exs~~dp.~o?~~~ line ~~11ed ~i~~ts, 1acks;~n ~~~s t3~t ta~~~r~st~~ i~~ ir~v~3~in~ jt~tsn ~le~k's ~a~~ud

b~~sin~ss; sv~a4 ia~ ~~a~~ed ~~•as t~ h~~v~ Sle~i~ c~esi~.n ;end r~~ e fc~r tii~n t~~"E ~rir~i~ss kie~~i~t~ones,

~N};~1e 3a~ks~c~ knew ~v~n b~~'c~rc his first ~etin with Eiae: ~rr~;~s t~;~at this c~m~a~xy had e~a~t

~revic~~~sl~~ r~iad~ an C~T~: ~3~ad~h+~~~ Tr. l~~-i~~, ~tsQ-~~~, 12~f~ end l~g~~, he ~i~d s~o ~~t~resi ~~

investing in the ~~~n~~any if ~I~ek e;~s~l~~~'~ build ~~,e t~~~d~-1h~~n~s. Tr. 12~Z. A~ 3a~~s~:~ i~sti~~~T~

". , . t .'.ruat~c~ to ~x~~uc.~ th€ avtu~i heaci~~t,:life ̀ ~►~ ~ve~he~~ h~~ds~z, rapt r~aliy bvh~t tt~e

~ac~c~t~~:t ?h~:y ham ti~e~~, it ~~~~ c.a~! ~~k i~ ~>ltt~ like ni~<he, lime r~~~ly ~ teed ~~~ enjoys ii, nest lxk~

€~~ e~~er~d~}~ p~rsor~ ~ni~ht Eu~e~.” ~~-. ~~5~~~,

?~1ark Krywk~ sa~cl v#'th~t rr~~~:ti~~~ ~~ith Jacks~an:

~a. He lzs~l tote u~ fl~si Rhe heaslpEion~~ ~~re ~n~x~e ~a~~ere~#i~~ to ~da~re b~cai~~c

he s~~ t~~: ~~a~e~es~ thst ~h~ fir. ~ e;~t~ [h~ad~l~rsa~~~~ k~~d ~n Abe ~~r~CeB.

r~ti~ t~ixt he °vc~~ded ss~~ca~#h3~r~, t~rst ~o~td b~ ~vvra~ iik~ jc^avelry, ~Sut tae atiso

w~rz.ted ~~m~t~lr~g t~aai s~ur~tle~ gc~c►d ~s ~vrett, ~r~~ that`s ~viay he t+va~

ic~t~rest~al ~n ~vh~t ~e ~uu~d r~s~ fc~r ~i~n b~~~~~~, a~cr~si~c~lty, ~~ kn~v what

ease s~et~ r3o n~ ~ifih ~Sw~ting rani soua~d tad to w t~Z~ e,~~° perc~ive~ dt,

~~~

Ai~~flca ss? a4s07 t v t


Q. 'ere yc~u ~~verg~ to the a4r~ae~i e~ an endorsement ~ie~t ~~ oppa~e~l to an

investment?

,~, Igo, ncat a# ~~L 1~'e mere ~~~~n~ for f~r~diaa~ ~~d [ f~Ad n~ r~bjec#inn kts i~,

Tr. [=fib.

Thz ~.zyF~j~~~ ex~ressec4 t~ Jaeksc~~~ ~t lhat rt►~et n~ tt~~tt #hey r_o~ld tr~s~sf~r (heir ~rireles~

earb~.s~~i t~c~nc~in~~ tQ a hy~d~h~r~~. 'I"r. 1`?~~). A.~er the first rtzQ~tiz~~ ~S~h 3acksc~~, t~lark

ryt~~kca cc~~isultet.~ ~.~itl~t I~y~~~rni~ innc~va~io;zs, ~.~ihich h~~r~ ~~nrkecl can the ~~si~n and

~nai~+~fa~turi~;~ c~fi ~l~:ek'~ c~-ba~d ~r~a~3uc:t~, t~~ sec if :hey ~r~a~.ls~ s~ls~a ~~si~,n ~t~d ~?uiid ~h~ t~~'~

he~~~Thc,~ae~;, ~~a:.zt t~~u~h ~ n~:rniti ~a~ ~l~a nvt eves d~si~~st€~ car buit~ su~i~ a ~rc~dtj~t. Tr. 3~~?-

1 S?. 5at:sti~d that thcv could rr~a~~ ~h~ C}TE h~~tSg hare: ttae k ry~~4;vs hid a s~~c~nd rn~etin~

~~~i~h lackso~ ~v~yF4 a~~.k~on ~,~v~ l~rt ~ ~:.ryw~C~a ~~t~eral int~rmation ~n ham ha ~a~t~~ the

heac3pt3c~ne3 tc~ ~~~u~~ grid ~e a~~s pz~~vic~e;~l with 5~rr~m, v~~y ~are~~sr~an y sketc~~ of ~ heac~~han~.

S1e~:~: Ex. 9 i; ̀I'r. 1 SS. fit the se~o~d rn~:etit~~, ~r~c~n~ oth~c th~t~~s, irk ryguk~ sug~~stt~d it~~t

screti~•s anci ~;a n ~iberi~,:evl~r ~~ used as dart ~~t~e design. Tr: 155_g6. "ihe ~~lies d~~id~d t~

mE=ve forward ~mit~~ the ~~z~~ct (~'r..l ~5-~3~i~, aitd 1a~k~c~ra.a~;z~e~~ tc~ inv~s€ ~t.~ n~ili~c~~ t~c~llar~ in

~1~e'n ~~ri~ a14c~ t~ Lc:cu~~a~ a ;n~:at~ber c7t cue ~om~~r7. j; i}bc: ~c~xt s~~~ c3;~~~ ~c~ rye r3tiat~ a c~r:~a~,t

bet~,~~~.en J~~u~:~c~n and ~1~~~;. ~'r. 1"~~,~-i ~~~"~; ,~~~ crts~ ̀ ~'c. ~ ~~i~9 ~7, ~3~s~.~~~~t~ ~c~~~ ~}v~3 tt~~

hea~~~F~~sa~ }~~s a nee3~ p~~~iuct 4`~r ~i~~,k and [~~ I~r~`vvkcr~ ~n~l t~i:~t ~C ~~~as ~iffer~nt t~~~t cles gnin~

stn eaFbtxd, "T'r. 99?-993.

~Il~en ~ek~d at ~~z~ ~~~~n~ ~*rhy the ia~vestm~r~t a ~~an~ that Steed: v~r~s seetcirg from

1a~k~~:,~~ in 2010 s~.=~~ the ~~rr~~ X1.3 rniEtic~n it had st~ught t~ raise in 20fl~--when Seek ozzl}~ hsd

its "legacy products" 4- ~+rIark ~wkr~ te~cifi~d ~t~~t "ev~ryon~" kra~tiv th~~t an ~ddiiic~nal $~-;~5

rni!lic~n was nerc#ed to etev~l~rp the 54~~k by S{3 headphs~~a~, Tr, 1ST-t S9, 1797x1798; s~~, erfsc~

Atl~rsls #1443Q71 v1 `~


~I'r. 630. ?°~c~t s~zr~r~~in~Ey, them is a ~is~a~tte ~et~~een the parries as €+~ o~,~;~~ther "everyc~n.~" kne=es,

chat.

~. 5,,, ilk and cks ~ ~ r In#o t ~ ~ uri#'e u ~t ~e A esme~# ~ ̀ PAl"

Wh<~t is not in d:~~ute is that on April Q, 2(110, t}~~ parties entered iartt~ r~ S~c:uriii~

P~~rchas~ rlgre.ern~nt (`;S~'A1"j. .ft. Fxttibit C`I. C~l~ins t~sti~e~ t~iat, prior to the ~xecutiQea Qf

~PA1, Pie c~i~n't "i~~Yc:siigat~" the f~nanci~~ can~ition ~f Stye-S~ audio butdi~ t~o~ ~t the ~Ie~~

;`inax7cial stat~:zr!~nts {~is,e~: Ex, ~~'~9 arYd ~~~a~, ~~.canira~:is, ~x r~t~rns ~nr~ "~c~i sorr~e t~ck~rour~d

snaterial r~~~~-tizi~~ t~~~ t1 tit of the :;an~gar~~" tz~ make s€~r~ thak ~u~:rythgn~ ~r~s cansastc;c~l. 'S~r.

12 '7, 125 ; ~ t ~. irc~i~~~~ ~~l~ins ~~ici ~o~ Llis~~at~ t3~e stat~rr~~~.ts in t~~ SPA. that ~lce~ ~rt~~

~rt>vidc:d 7ae~sc~~3 w~ii~t~ u~pies of i#s l 2131!03 ~aa[~nce s~ee~, inc~rnb state~ne€~t and s#~t~rn~nt nt~

cash 1'~tiv5 car thy. ~-e~r~sentatinn that these ~~a<incial stag cats #'airly r~prssen~ed the financi~i

~;c~n~3iti~~1 of Slcek. Tr. 1:3~€?-~ 1. T`ner~ ~~~s, in his ~?t~r~s, "~ ~er~ra! €3ue ~al~~~,rac~,°, t~avi~g

t~in~ w~~s~3 ~t~ unc#ers~~.~r~i~tg tt~~t ~~e cc~r~~~at~;~ ~~~s "~~h ~css," 'I`r. ~25~. ~~at his "d~~ diligc~nc~~~

~f~`~,rt~ a~oa.~~entl~a u~er~ nc~t spa 'i~;i~nt ~'s~r him to "~nos~~ ~~s~r tc~ tic inves~rstet~t h~sv ~hes~ buys

were .~zth cas}7, ar~~i . , . ~v~3ai they a~.t~~~li~~ ~~er~ ~ca~rs~ ~~ ~~ with ~as~ ~v~n ~tl~u~h +ve ~~r~~3 ~~ci

L~sr~ of~I"u~c~~. psi l ~i~~i t k~a~~v ~~~~iat F:~~d t~f ~ €~ Este tk~~~y ~~rn~s':~ 3~~v~;." Tx. 1'?~6.

fi+:ctioris ~, 3 ar{r~ ~ ~f'~hc SPr'+,t ta~n~ra wat`t'~r~ties ~i~ r~px~s~nt~ticn~, c~rcain ~t 9~•h~~h

~~tc: set out E~~law:

S~;C~T'IC)N 2. ~~~P€t~~E7N7'A`t't(~N~ t~~E:? ~VA~Rj1t~T~~S t:~F' T~-I~ CC:?t~rSP:~~CY

2.1 (i) Use c~F I'r~ce~cis. 'the a~~r°egat~ purc~Z~sc prE~e rY~e~~ed by the

Can~pany F~c~~n the inv~~te~r s~~l1 be ~~e~i pe~rguant to chc Use of Prace~ds

a:ta~hed h~ret~ as Scheda~l~ 2.t~t}. , . .

~ 2.I ~~-i) Thy Cs~rr~p~n}~ has d~6~veced co iz~v~+st~r its ur~~u~ited ~~~n~iai

~tat~~~n~s ~{inc(udin~ batance. sheet, Incc,~n~ ~taiee~~rat end ~ta~~m~nr of

At~anCa*1143071 vt ~Q


crash f?c~vs~s~ as +~f`Dc.c;ember 3l, 20Cg9 for dhe fiscal year.El~en~~rtde~i (thc

§2I (e,) Tc~ the ~om~a~y`s k~~-~zvl~dge, since Dec~rnb~r 3 t, 2{~(~3, there has been

no Gv~nt or circumstances af` ar~y kind that have }za,;i gar reas~nablt~ ~~ exp~c~ted to

have a rz~.at~r3al a~v~rse c~f~c# on tt~e ~€~rrt~any, ids ~+t~sinc~:~s, ~p~ra~icros car

prospects,

S~C,'['[flN 3. i3~1%E~;T'C}~~~pR~S~N~i',~'T`IC)N~

3. t (#~ Tt~~ Iriv~stcar acknvluledg~s t~~~t the ~c~ ~s~ny~ has nat evade env

t~~ritt~n r~~S~es~n2aFicsnaz warrar~ti~;s €ar cc~v~ria~~i~ in respect of the

Co p y, its b~,:~ir~e~s, r~~ults ~f op~ratsc~z~s; fin~ncit-~t cgz~~iziar~ car`

prosper€s, yr t}~e ot~'eri~g o#` t~t~~»be€°ahi~i ls~ter~sts fc~ ~ ~iu~c~as~d

~ursG~a~s~ i{~ t#~is ~~re~s~n~aat ~x~~;~ ~~ ~x~rWssly yet fn. r}-i in #h€~ ~'~ r~n~~nt

~n~ C~i~ {~~er~tin~ A.gre~rn~rat ~uitht~ut 9ir~itirz~; ek~~ ~,~,~~r~~ii€~y ~f h~

fo~~air~~, ~;~~~~t ~;; r~~y tie ~rs~~vz€~ed ~~r~in, nc+ p~rsc~n i~~s ~~~de any

~vrit~e€~ ar c~r~l r~pres~nt~~is~~x t~ the Irsv~~ts~r tYct~t and g±~~sGn ~iil r~-sell ar

re~urch~s~ ~e t~'I~rraE~~cship inter~~~s or r~f~nd any ~sf the ~zec~h~3e ~ ire cat

ih~ ~✓i~r~ib~rs~'s~a int~-~~ts.

3 3.1(jj Tf~~ Inv~stos is ~uf~ciently kn~valed~~~bl~ ~3 ex~+eri~~t~e~i in

makSng caf x~~r~st~aenis era ~s to b~ able tQ ~°v~ir~ate tine ris~;s ~n~3 Fn~rats Uf hip

i~ti~~sin~~rtt in ~~ ~c~rrapany, aid ~s ~t~(~ ~c~ b~~r the e~~r~~tnie s~is~ of less ~t ids

i~ti~~st~~~~z~t in Eh~ ~ar~~ar}y.

~.I(i) The I~v~stae belie~cs he h~ _~~ce3~>~d ~~I ih~ int~~~~~~ion he ~onsiet~rs

z,e~essar}: or ~~~argpsi~~~ f'uc c~ecidin~~a~h~th~r to }~uYc~~~~ ~h~ Mct~~be~~hi~

tnt~r~~ts. Thy inv~;sic~r t-,a~ tt~d ~n e~~p~t~lurtit~ try ash: yue~cti~ns end r~c~ v~

~n~~.vers f ~rri tlae ~c~rnpa~~ ~~~a~c~,~r~~ the t~rn~~ ~r2d cr~tt~it bst~ of lire

ofi~.ring ~~F the Mem~e~h~~Z lnt~r~sts ~~d th btaNine~s, ~r~p~~-ci~~ end

~ir~~n~~aJ et~nditican ~rl the i~c~r~p~y_ .. ,

SE~`~'T~.~?*~ ~. G~~d~~AL

7.$ Ie~te~ratic~n. 'dais ~~r z~~n#, i~ciudir,~ the ~xhib ~s,,dQe~sm~rst~ ~rsc#

izz~cruments r~f~rred to h~reln ~r i~~r~~n, constitutes ate cf ttte ~~r~e~enzs

~ncl s~ap~rscd~s ~1f oih~r prit~r ,4~rcemec~ts ~t~~ unt#ecsta~sdin~s, both zvri~ten

and ocaE, ~mc~n~ the paxti~s 4vith re~pt to the &ubje~t an~#ter h~z'eof:

~~curities ~urch~s~ fi~r~emrr~t c~~t~~f April ~2, 24~E?, .1~i€tt ~xibit ~3,

(The paztzes alga e~ ~~.ut~tl a I'~t~ve~~tb~r 2C1tQ ~ecuritie~ ~urch~se Agreenx~~t

(" y~'.~2") which contaisz~c~ tae s~rnc cepr~se~itati~ns arZd ~varr tzes. ~t~c#csan Ex. 7~~;~

Rtta~nta #13~A3(i71 vi ~ ~


"KnnwIec~g~: e4'th~ Company" (as S~cti~n 'Z,1 was defined an ~ecti4tt 2.2 t~~ "the actual

knc~~vlec~~c afti~e C3f~Zcers t~fth~ ~c~m~~r►y, assusr~ing re~sunabie inc{uiry," 3ac!esan did nr~t

~r~s?:nt any tesi mon~~ that SE e~k breached those urarras~ties ~ztd repr~sent~tic~ns, Ta the cc~ntr~ca~',

f;c~!li~ts t€;stified it~~t h~ ~~td nQ ac_~son to believe that Sleek had breached its warr~niy marl

re~res~~uation iz~ ~F'A1 ~nc~ tit the ~inanci~i sty€em~nts f~ir1~ prr~s~nt~ Elae fiz ~~ial c~t~ditEon

z~nci ~pecatins~ r~~~ti~s° ~if`~l~e~. Z'r, 9~~0-~1,

f~d~i~lavr~all~, ~~'A I ia~~l~~eu ~ct~~ tt~c~ 2,l (~} ~z~title~i "~.35w cif ~*a~,~s~` t~~t delir~~4ed h~~v

~acks~n's ~l.,~i i~tv~~tr~~~ni c~~as ~t~ b~ ~ppli~d. Pv~~si im~,~:t~l+°, tt~~ Sc?~e~uf~ a1st~ c~~~€~~irted

the fr~Ilc~ti~,~in~ stater~~ex3t t}~~t ~~fic~a~:.l ~r~~kca n~Rzrec~ was in the a~:ree~nen~: "~3~e ~~ F'rtsceed~

~r~~se~tkv ~xpec~e t~ ~~~ovi€1e ~~ie C€~~~r~~+ ~vit~ ~~a~i~rzt ~var~:l~~ ~~~i#a~ ~~z~il Ju~a~ ~~,

2t}10, . , ." (Em~has=.s ~~d). t3#'th~ tc}tat investrctent, c~nay ~248,~5E~.~~s was ~I?~c~tec~ i~ the

,~~t7 prod«ct ling d~v~~~a~r~~raf & inv~~~cj;y" b~ca , a.~ ~~al~i~zs t~sts~a~cl, zhe ~~kos ~ai~l "that

v~oa~li~ ~no~t~h tc coo ~t." Tr. 125-~.

Nr~w~r~rr; sinc.~ ~l~e4; hid nax built ~.n ~' h~ac~~ihdne ks~ft~re,?'vfark ~Cry~~~~.c~ did rani

~.n<,~a~ I~c~~,v ~iu~h it o~~ue1~ post tc~ bui? the he~dphc~~~ b~:eause at 9~~d nc~t ~t2 d~9~~a~~ yet, Tt.

IG~. ~~Is~, Feinstein und~r~tc3c~+j ih~t t ~ ?~~-+-I~. way n~[ ~~tsu~h to desi~ an~i make the ~~h~3~

i~T~ headphone prt~d~ct ~ncl tcstifi~~f th~2 he cc~~~t ~ac~:s~~~z ~.nd his re~resentativ~s that before c1-~e

~~al cl~sec~. "~'r. 1:~2U. ~acksun afro €e~tified tit he unc~erstac~d ih~t t~tt cif dais ~t.3ivt w~ not

~~in~, tcs bc; u ~c~r tie he~y~h~a~~ ('1 r. ~2~~ end t~~t tt±~ ~248i~Ik ~v,~utd result im ~ ~xc~t~srype,

taut "~i Jt ou~sz~'t wing to dc~ t~r~ ~rh~Se hung. , , . " 'I"r. IQf?7.

~et~s~s z~aa-~sar! of ~2


On h,aty i9, ̀~~tt4, Iv~icha~l Krywko s~r~t ~n e~tai! to Cc~tlins and cn~ied F'eiz~stein end

i~+fartic~ ire which tie stat.d:

At ih~ tin e ~f ctosir~~ ev~~vpne acknc~~r~er~ge~ that [here ~~lo~l~i be a need for

~zddati~na! funding by ih~ end of 3ufy.... Tt~~ need far funding was addr~sscd

several i~~n~s o~fc;r the ~a~~t months thra~z~h sub itteci ~,.~sh flow projNctions ~s well

~ various meetings and discussions.

~Ezek Exh. t5i.

rat t ae hea.rin~;, C~?liins tcati~'zecl that the a~?ove st:~t~rnaes~~s in ~~a~ ~-mai! were rant accE.zrat~

i~ t~ nris Uf duE~at ~~=as ~~i~~g re}~~~:,er~k~c~ ~y Meek ~c~ the J~ek~,~~ t~aaz~ gat ~4~e tire, ckf the

ne~c~tiat; ~~~~s regs~s~i~~ t ~ 5~'<~i t . '4'r. 12~)~- I ~~35, Sit ~e e~r~ini y ~Ses~r~~: aware ~~ ,Sl~e~ "s

a~~itit3f~<~1 cash n~~~s vcry sc~r~a~ ~~tvc ~~~ execut~€~~ c~fth~ 5F°~:3 ~h~:rd, c~r~ 1~~ay t ~, ~t3d0,

S~t~ichacl ~ry~~~ka s~~t C~Ilins s "prb~~css~c~ 24I~1 ~i~d~e#.lcash f'~~.~„ (~1~~~: Exh. i~~). C~lli~~

res~ondeci b~ en~aii on June 7, 24 i ~P (Sl~~:~C E:~h. t ~~} that "(t~r5u Qtt~ t~iit~~ that i~ certain =s th<zt

yc~G, ire ~;oi«~ t~ n~~~ ~a~h s~~n. , . ,~ ant#~i~ate i~zat ~~r~i~ ~~re g~>1r~~ t~ need ,~2 t~ ~3 nrt«rfiE~~a c~~~r

the n~xr .si.~r to rains nr~nth~ 4~z?~i vie ~?~~d ~c~ ~~urc out the be~~ ~vay t€~ het E~tat rr~~n~y into the

cor,-,~any,~ ..." {F~r~~his ad13e~).

'a ~cma~d ~~t~ ~~ ~ ?a' . r~tfa~ ~ r~er~t~mt i~t~ "~ er~at~~~ r e~na~ t"

.~.nuth~r a~r~ement, t1~e 5c~~c~r~s~ a~r~~ ~~~stat~d O~~ati~~ r~gr~~a~i~ni ~Eite "f}~era'~ing

~~grc~ement"1, ~a`~s also ~nterc:d itat~.~ by the p~rki~s are ~.~rril 22, 2 11 ~t (1~i~t. Fx. ICI;), Sl~e~'s ~ix~,t

t~}~uratir~~ f~~re~meni having p€eced~d 1ac~scm's inv~~tment ~~4a 51~~3c. T`~e ~~tatita~

Ag~~:~;rncr~t inctudgs the fo~la~~i~i~ c~srz~C~s~tial~ty pravisic~rt~

~1.2~b c~n~d~ai C~r~id~ntia4 Infor~t~atzrsa sh~.il be d; fiz~~d

as mtl non~publz~ m~tea~~ turd inft~rrt~~tian caa~~;~zz~zzit~ ~.ny rr~tt~es relating

~ts~eu,tn ~~ ~a3i~71 v ~ f 3


tai the business of the Com~r~ny, ~s w~11 as the perst>na( end fina~3ciat

ir~~'p~nati~n of Memt~Es a~~d, to tt~e exten4 apP~icable> the f~rnily ~ncmbers

cif ivl~mbers why are ir~dividt~a~s ~tnd the iliazes ofi4~Iembers vnc~~ ~u~e

entiEi~s, ar~~! ~iE trace secrets, know-buw, ic~e~s, cor~c~pts and

mec~~c~~~lc~gie,~ incorps~rated th~r~Fn, includ.it~g, ~rithout tsr~itin~ the

~eneraSity a~ the for~gc ink, aray ~f sucks inforrt~~ati~an cc~ncer~airt~ rr~an~er ~,f

o~er~tian, ~~ar~s ,~r s~tt~~r date ~~th~ai~i ~~gz~r~i tea ~~a~t~~r stt of the

~ore~c~dng matt~r~ will ~e deera~ed car~~id~nti~9, r~ta~erittl rar irngorta.~t~ ansi

i~ is agreed that t~se sarr~~ ii~partasl~, re~a~~ria~ and cc~~fiticntiat tend

~ra~ely affect the ~~'fective and successful ~c~~t~rsc€ of t}~e business ~f the

C~jr~~~~~y ~rs~3 i?s good ti~ill and, ire 4~te rage of ~c~nfi ~r~ti~3 Inf~rr~i~tinr~ ~f

~9~mb~rs; ~r~vely~ ~f~e~~ tui~~r~Eiers.

t.1n~~r ~~c:.tian 5, ~ ,_~ ~.j~' G~i~ ~p~r~~ z~g 1-4~a~~e~n~nt, .~~ck~c~r~ wits ~~~~intL~ ecs chc: ~cr~~3

~irt~.~ Ise c:vntinua~ ~s a rya :~r~~,er ~t`51~~~'s E3s~~~ ~t lest thr~u~h the h~;ai ~s~y S~~~iun ~ fis~h~r

s~~c:itiet3 Rl~at the i~~t~a~ Fin c;: ~.~mrt~itte~ ~a~~-~utd ~ti ~g:~~~ Tn.~ Yvkc~, t3at-~ ~€ob~ib an~-i ~;~ti n~,

,ir.. ~xi-,ibat. h. ~ 5,1,1. Collins ;~~ ~:~ c~r~ the France Con~~n~ct~;~ Trams tlpri' 22> 2fl i t7 tt~c~u~~ ~~t

least the ̀ e~rin~. 'fir. ~ ~ ~, 127 -~~. 3~ike Kr~w3c~ re~ul~rl~ ~e~+t Collins ic~fat~z~d :~g~rdic~~

the fin~.a~cial can iF o~ ~f ~1~4k, p~zrtiiut~riy a~sr~c~i the ~~:~rnpar~~r''s U~six needs, ~l~e~t fix, I~9,

l5(}, tS9, lS3-5~, ~f.~-~~; Jacicsc~n fix, 520.

Sect"tc~n 3.~ of the ~e~:c~n 3 Qperatiti ,~~-e~~sent ; ci#i~d the az:~c~urat ~f ~~.~ra~2teed

F~a~ zrtents Thai ~.~~ere tea b~: ~~i~ [c~ t~Ec Y.~';r'~~k~~, ~S~n ~~h~;~~.al~ ~ita~i~A~ t~ ,tt, ~xhi~~t. N.

lacks~r~ 5~~seque~tt c~srit~nt?~r~s t~~t ~~~~ ~u~~s~t~~c3 ~~~a~s~ts set otit i~~ ~~~aedtale f3 ~w~~re tin

x~i~;I~ ox sf~d~u~~ r~~~ ~~~.v~ ~e~~t r~~~;~ i~ ~=iew r~~ ~1,~ ~"~ gas ~ ~~ls vd~s Eu~i~~d rat t~~ tfr~a the

A~r~~n~~nts ~~~~re si~n~d. ~-Ec~c~~ver, 4l~srk K~y~v3co test~~~d ghat th~r~ +ar~re ont3~ 3 "£'~Il„

nYc~ath4y ~aayments rn~~~ c+r~ these ~uarantced az~ozat~ts and #hat tt~~y ~h~~ ~~~re reduced by ~0°i~

end t~,et~ «gent dr~wri ~~ H5% ~, few n~€~~atE~~ ~f~~r th~t~ in ~~i~~v of ~~sh f~~w pr~f~E~rr~s. `I'r. } 2~~.

Auanta ~ft4~13o73 vv t`~


(~. Hr~r~d License ree t

Alsv acs ~~ril ??, 2014, Sleek and G-Unit ~~an~s, ~r~c„ a Jack:sc~n ~c~t~apany, e:c~~~ted a

„~ranc~ ~,ic~nse .~~€~er~ent" .~~ich st~t~d in Para~rr~~h ~~ the "Sl~e3c Audio shall t~sc best efforts

to ~rn~id~: prcatntyp~s cif ~a~.li ~-i~ac~~tton~ Prodract t~ G-IJnkk on car bs;fore Clctaber I S, ?a i41, for

r~vi~w an~3 ~~pr~v:~ b~ ~ -Unit ~s prns~ide~ her~.is~, and t~ #~un~l~ t2~e xetail sale oP the dull 1'szzc of

b,~~.l~ t~ie~r~pt~c~ri~ azad Cus~~r~i Ear ~~~d ~rc~c~uc;~s r~r~, c,; befr~r~ ek~ru ~% 15, 2tll 1." T~st4~c~ny t~~e

eaAe~: anc3 exhibits b~~;~~ int~os~uc;~zi at ttz~ heari~~ rela~in~ to ~~~z~k~ier ~le~~ camp€ied ~.a~ih t(~i ~

prc~visic~~~. Tt7e :~.rtr i~~atc~r t~u~rstar~d~ ttaat •ti~tEet~~r an t ai1~~~~ bz~~et ~ cif the I~r~n~ C.i~:~nse

A~,r~~rn~nt. c~cun°e~ 6s rEut at iss~.~ ire sh~~ case :~s c~!~~t 4~~~t ~~ ~~ctre~st+~ iu ~r~Qth~r arb ~at~on

~Cndin~; bctw~~n ti:e p~rt~~s i~z i~ie~~~ Y"~rl~.

~I. `~"tie ~te~k b ~ ~ e

I'hi t,e;~d~ho~~ ~ar~duced by ~t~ek ~v c~t~~:c3 tie "Sl~~~c by ~4." It is the. t~st~i~.rat~r's

positic:~n that it is net ne~~ss~ry t~ a t~~.~ak~ in this It~~eram sward all c~fth~ rte}triad ~fd~T„aiis

introduced infa evidence r~t~~ir~~ t~ the ~1~si~ n and c~~:~=c;ls~~z~~~nt of fl~c~~e hea~~at~cs€~es inGt~dirg,

as rr~er~l}• ~~am~l~s, ti~~ ext~z•ioc design 3ez~~~:.ris~~,s < ~ their appr~~°~I Yy.~~~cksa~, the

°prc-~t~ty " c,r ~~c; Meek b~' ~~J h€~c~t~h~ne~, 4.~e 2~J~ t ~~rn~ut~r ~~ez~tr~r~ic ~}~~~~ ~l #.he TV

f~c~ods/~let~k ~~r~em~rtt, in t~rt~~r tc~ ~va~u<~t~ a~~~l a~r~~id~r tae parti~~' et~r~s> rrrfr4z,

I. ~9eeic's Tra+d~ ~~r:~ts

(~} ~e ~iba~ t4'~ect~a~ ~ h St~xlc ~C! ~~~ s3 0 ~

fiie~k's ~x~er~, fir, Fi~~uf~ ~urg~l, has ~ ~achelssr of ~~~en~~ degree ~rorn Nf l`I'. a.[aster of

S~:.i~nce +agree from the U~~ vcrsity o#' CatzSa iii -- Berk~e}~, azxci a Ph.D. frc~rs~ t}~e Ll~liversity cif

~alifct~x~ia -- ~~rk1~,y, alt i~ rr~ea ~racal e~zga~~erin `Tr, 41~, die ~Sr~senred ~ cv~peten'~ ~~~ert

At~snta ~~ ~c~a7 t ~.t l S


o~iniui~ based r~r3 his si~itzcan# kzt~v,~led~;~, h"ss 2a-pl~~~ ~~~grs of m~ct~ani~al e.n~i~~~ring

~;xperien~:e ~n~, ire particular, t~is airtiast l [} y~~r en~ezi~nce dating dirtc~ty with hea~ighoraes as

Ehe rrt~.ztagrr ~f 3[[ ~nechanicat ea~~~~eerin~ c~pera[icrns 'tn t#~e ~34s~ I1~esi~n C~r~~~r ~~~~~re hi5 ~uiies

inciud~cl the d~si~n ~t head~*hc~nes. Tr. 424, X41.

.lac: k.~,on'~ c;urr~r~1 h~ad~h~nes, tf~s~ ~yn~h by Sc), ~~d the street ~y 5t3 are basically [h~

~tutx~ ~esi~z~, rr~e~;fasr~i~s~yy ~r~si the ~yt~cla ~y S~1 i~ a ~.~r~~~cs .rz~~ie1 d she Stxc.~t by 5(} .i:.~

wir~~t. 'I'r. X142. D~~. ,~ur~at c3p~nvd t it J~c~tsr~n's ~rr~~t by .50 ;~~i ~Yn~:~t try S{7 h~ad~at~~re

`~st~ar~. a rri~a~titticl ~~` ~ch~rtt;,at d~,si tt ~~°t~ils witi~ €hs, ~1r~~ ~y 5~}, ~~•i,~~t~t ~~~.~r~ra~ the 5 r~~

fca=,it,~s in ~;ora~mo~ r~ri~7 c~~~~r he~cl~s~~~n~s eized as ~irt~;~ar ~~y J~~ ks~~ ~r, i~i~~~c~, ~n~ of~a~r

~rern~~lar he~~~i~one~ fi~~at" ~~ h~cj ~~ ~~Ie to 1cc~t~." '~"r. ~L9, ~~4, St~e~ Exert ~x}-~ I . I.~ his

tspi.nic~n, t}~e "design c~~ t3~e ~~'ci~~. by Sti •- ~r~d thYref'c~r~ the S#r~et by SO — ~.~as rap ed from ~h~t

~f t;~e Sl~e~. ~°~ ~C~." Tr. ~t"?9. fur€}per, l~~ ~tat~d t,~,~t "~tj~ likelihc~c~d ~f such ~n s~verla~ of

f'e~tures ~z-f{~ ~~sit;n d~t~i3s to ~e ~rcive~ ~i, is~d~ :nden~ly ~y t~~ d~s~i~n ~c~t~ps is infir~it~sir~~Iiy

sin~~l [~:P., 'sa sm~ l ss t~ be ~~ae,iicalB~F zero's>" Tr, 4~~-~~5 mad 4~~, ~~7,

i`~r. ~u~s~ ~~t~t~:al,~l~ ~~r~id~.r~~ ~i~~~'~ p~c3d~~-~~3za~+~1 rn~a~~ni~r~i tt~ be "trt~~~

ui~(c~~:~ g~x~~ e," tic c~.~a~;; t~~ €a~1d n~~,~~r s~.e~ it ~f~r~, n~~t i~t ;t~s ~r~ar~ at ~3as~ cr in ~i~~ r~set~rct~ i}x~ct

h~ ~iicf ~; t~zis tt~<aYter. 'I~r. X34. ;v€a~~~; k~ry~v4;~ te~4i~~c~ ~ta~i lac ~e~~n ~v~ae~ia~~ tea ~~a~~t Reid

from Dyn~s~~ic Innr~yatie~n ~n c~ittc~pt5 ~nc~ re~~~r'an~s #'sir t~,~ h~~ciph~raes, inr~u~in~ ii°« gimbal

ciesi~~~. ~'r. 166-167, '?~7-24U; s~~~ crls'a ~Zeid I~c~. ̀~'r. 7~, 84-82. (In t~ctvb~r ?bt Q, 9asc~e~ Nsrcli

al~~ t~e~a ~ inv~~lved ;pith tt~~~ 51~e1<. ~y ~~J ~t~~dphc~z~~.~ ~n t~ehalf ~sf Steak, but h~ had "mt~tnia~

~~~vc~lv~a~e~st" in it d~si~n. Tr. 1535-~ 536.) Reid, ~~hca is r~~t ~rz ~n~in~~r end ~ive~ riot h~y~ a

d~s~ree in en~ir~~erin~, hats n~verprev~utssly ~lesi~rzed h~ad~~~tc~~tes ~~t~id ~~~i. Tt'. 32, ~9) sn his

AtianW ~1443G79 vt ~~


c~~,inion that the ~imb~l design in the 51ee~ by ~0 +~v~ "nat ut~i~,ue ita any way" {Reid I~~p. Tr.

2 i 6~ is z~~t considered cr~dzble, day the Arbi i~r.

fir, ~3ur~al ~d nak di~as~ern~t~ sev~r~l ~f`i e thi~`c~~party hea~tph~nes that ~3~ ~xamin~;~ ire

~a~G~vin~ ~t ihi4 c~piz~aonj ~~caus~ taf "the :#'eel of't€~~ head~hQ~e end the abs~nc~ c~~ any resisianec. .

[l~c3 him tc~ s~rs~ect tt~~at" i~~ he~dp#~c~n~s did nc~t r~ecrrparatc ~ ~'srn~~l ~?tt~ fr~a.~ pacts. Tr.

~8~. ;'~c the hear~ri~;, Dr. B~r~a! ~~ysic~ElY ~x~tnir~e~3 ~ S~:,t►i ~i~ Lt~ci~~ris 5~. 3~t~ he~_d~htsnc:

(~~~F~ibits i2{~~?-1'2 t 5 j rvt°f=~~i he ha~3 ~r~~~i~usl~ [~at~k~cl ~f ins a ~taz~ ~ti~t ~'aacl rs~4 d_is~:~c;t~tbled.

Ti~~t ~~~d~ho3i~ tad v "'~crzi~~~ tr~~a-s~;f~~c:~a~i~;r~~l~ tvv~-~:~is ~a~ni~z pi~c~~c:" ("I'r. ~~il~ ~~ it ~~aa

,~szt,v~t~ere thy. s.3me" as tn~ Sl~uk ~ ,~a~:~ sczn i Y~~l~. ~t'r. 4~~.

tt i~ nc:te~ t~~t st~~n~: ~~~tn~sses ~~stifa~u~ ~t~a~t the g:m~u~ c3esi~n eras rs~t ~zrt~~ietary. Fs~.•

instance, Brian None, Pros dint cif Div£ .Audis (3ac~sc~rs`s cs~ zany that s mm~tnnufac:t~r~d ~.nd

n~~.rkei:~ iris SYttc~ ~}° S(~ ~~~i ~tre~t by 5(} he~c~~shos~~~), test~fi~d i~t h~ coup "~~ find ... 24~Ut~

h~a~~hvn~s that ~xave tkse ~xac3 ;s~r~se des ~:n„ {~3c~Yte lit C~/1'? I3~p. Tr. '7~); 'hut did nit present

<~~~ evidence tk~~t rni~ht }lave s~a~~,~rted ~xat c~pia~~c+n< I-i~ ~~rasr2'~ "~ t~a~~~~l ~~y" t~vuhe 1116~t "?

~?ap. 'E'r. 71; s~~ ap~~~ Tr. G"~? r~c'z ~~is ~r~'evi~u.~ pa~i~iur, ~~~ ~vit~ ~~i~ Q~~s1 c~n~~ g~ That sotd

4;:~ ~~ads at~ci ~a.rpl~ones (hut nr~t h~~~~#~ones) ~~at sere d~s~st~aed ~:;c~ tn~~tfa~tur~:~ by ~~t}~~rs.

~~~~.~d ~pcs~ his ~~t~:nsiv~ ~R~e~~.nc~ w~t~~ h~~~p~~~,es ~r~ad ih~ f~~t ~t Ta: ksc~~~ ~?~c.s<:r~t~~!

z~a cce~i%bl~ e~riclenr~ that the ~~~e~ pry S~ pa~.~~31~agi hat design existed in any tt~ir~~party

k~c~sc4~t~ane gat the time r~~'th~ r~~~~l~pment ~f the Sle~h b+,~ 5Q Y~eadpt~o€a~, t#a~ i~lrbitr~tar cc~pts

as credi~ic Dr. ~+~sal's concl~asi~~rz that chase ihixd-party h~~dphones did nit h~zv~ ~ ~imball~r~~i

rnec~a~nisr►a sitz~ilar icy the'~~~~~C-c1~s dried tz~ad~ht~~te.

aa~anta ~t~ia471 v1 ~


I► is undis~E~Ced that ~h~ ~xt~riac cif the Sleek by ~G headphone was publicly ciisplayeci ~z

the ?t~ 1 t ~~S, r~su(ti~~g zn ~.ny ~xtcriar c~es~gr fe~g~ares of the tte~pi~az~es b~irag i~ the public

ciQmain and ia-i~pak~le of beir~~ cs~nsider~d ths;~after to b~ ~rad~ secrets of Sieek. See. e, g., Tx.

30~-'3I d; l~.~eksr~n Exh. ~~4~. FIo~~~zv~~, ih~ siesi n of the ~imbai would spot h~v~ been avaiDa~te

~a the p~ibli~, at the tis:te of its rr~isa~prapr anion, sine tih~r~ had ~e~ nc~ ~:~~r ~'Qr sale ar sale c~~i

~lc:tdk f~~i'~ ~~earlph€~r~~ s~z ±t ti~'a~~1~3 ~cst h~v~ ~ae~~n eiih~r ̀ ~gen~r~~iy ~n~wr~ 2~" car "z~a~ikY

ascee~a~nanie" ~y t~th;.rs why ri~i~t~t ~,rc~fit #'rpm its use ~r ~iscl~~?4r~. Sep, f,g., ~ r. X74-475. "I'he

fact t}'4at it wc~eils3 i~v~ t~e~n ~e~.~i!y as~~#~ir~a~lc; tht•cug reverse-~n~in rind oa~c;¢r the ~a~~~u~.2

~Nas ~iut un ~e rttas~~~:? ties nc~~ im~acf c~rz t~~e fact t~iai its internal rrt~~;~z~nis,~E de~i~rs u~~s nat

previously sha~~=tt ~~ the ~i~~t~c ~ria~ ~•~:m neti ~a Yradc aecr~t ~~ tl~~ time ~F its ~nis~sp}~rc~~sriati~n.

That is true ~V~,z t?;Qt~~;t~, ~s t ie ~i~sign ~rc~rk a~ t~~~ ~'l~~d~ ~+y ~~l ~~a~~hmr~e be~~, ~le~~; anc!

T~j~namic rev~rfe-~n~zn~er~d several Q'i` ~e~dpho~c~ t~~~t ~~re already can the m~.rk~t to see iz

tt~~y cc~uid iz~ctir~~rat~ i:~:.~ the ~le~k ~y SCE f~~aures f~~r~~ these tl~Ir€~-party hea~phc~nes, x~ e~,

,~<-c~c~.iia-~~ ~s~ ~}s. f3~.zr~al, ~h~. ~,ir€tt~~6 rrs~~i~~~is~a i~ ~~Iua~iie ~`r~r ~e~•~rat ~~~ss~ras: (I1 it

~i~~s tt~e ~amhc~~e;s ~ +a~~ soli+~ and rot~ust feel; (2} it ~rev~r~ts the ~n~~~ e~r~;up frarn rattling

re}atiu~ tc~ the c~~zter ~arc;~t~ vrhe~ # i~ s~Za~~n~ and {~) it ~lic~e~r~ #~€~ ~neire center t~f tt~~ ~arcup to

b~ ~seu Fir ttae ~ositiortiz~~ a#'a ~~int~d ~ir~~ait t~arcf sc~ the PCl3 can ~ ~u~k~ed a~ far as {~~a~sihle

to the outside of ~hc~ e~r~: t which allows t~~ acousia~ ~c~Iu~e tc~ ~e r~~.~ir~ized c~ ~ro~~id~s a

d~~p~.r bass sQurz~. ~°r. ~~5~3`7, ~4~, Sir. Burst ~~ir~~d that Sleek°s ~irnbal rr~~cl~arusm ~uas a

ber~er des gr~ chi that in the ~3cats t~~adphor~es ~~rau~~ 4f Sleek°s incr~a,~ed acoustical/vvlum~e.

'I'r. X44. Thus, L~r. ~ucssi estabiish~~l tie "ind~~nc~~n~ vsiu~" ~+~'S1~ek's ~;~s~r~ba~ xn~c~a~s~ism

it:

the tnar~crtpiae~ a~ci t~aat it i~ "not gen~ral~y ka~~wn,"

Rtli+n~a~Y14+9,~Q7! vi ~~


I~r. €~ucs~t testified ih~t ~}r~ c~~verail it~tegraho~ c~fthe cat~tpo~~ent~ in the S1€~e~ b;~ SCE

heacfphc~ne ~~ra~ atso pique (`~'r. fi7-E~B~ ~r~~i tt~~t the i>a3ue of the S4eek ~eadphr~nes cozr~es from

the fuck t}~~t all of the Paris have icy comp t~~~thee ~a pr~~,zee s ethir~~ that is unique and

p~r~a►ms 3s inteadc.d (t3~e ~ho~4 ss ~r~st~r than the s~rrn ~f the p~xts). 7'r. 472=~3.

ivf~rk ~.rywl;c>'~ vid~o~ c+f his ~az~~,aris~+n ref the Sl~~k Fey 50 with the B~rnGh ~y ~hawcd

t~~~ sc;:t~er~l Uf the inner {~a~'ts ~f die Si~-k by iE~ and tY~e ~y~ch t~~ 50 aid 5tre~C Div 5th

h~a<3ph~rYcs w~etc ii:e sa~~. Si~e~ ~~, ESQ. Fir ii~tance, t2~~ Seek by S~} mr~del gim~ial .xnr~ riti~

sir ~,up ~a~aiche~i tY~~ ~i~~zab4g and r~~a~ ~~tr~~r~si~r,:s :~f tie Sy~~4~ g~r~a~u~t, au~Y~ that ~t~~ rc.tainin~ r~~~

Er~~sn3 the S~~r,~ ~~si~r~ e=~n b~ f~t~~~ ~rf~~tiy ~~ Y~~~ 41e~~: ~f~nt~al. Tr. ~~~-2~8,

L'~r, f3uzsu! ~,out~ t+tai o~~i~~.e ~~a the ult~iinai~ issue, n~~~~~~ly, ~sr3~~tf~awr fl~~ g~s~st~at 3n~ch i:~r~~

is a tr~~te s~~.r~~ c~~ S~ea:.k> bea~~~se h~ ~v~.~ t~u~ a~vas~d by '~1~~~ ~f aray faet~ r~lat~n~ tc~ t*~heth~r

rc~~or~ab~P s~.eps ~l~d b~~n ta~e.r~ ~y t~~ ~~srapany ~t~ pr4#~~;t #fie c~~s~~a a~ its ~irnbt~l ~t~ec~.~nism.

t~s to ovt~ef~~r Sleek took t3~e n~c~4s~ steps t~ ensure that the gim~aa4 m~~h~r~i~;-n u~~s "nc~~

readily ~scert~in~~lcy" tn~ folt~~.v ~~g sets c ut the substantial ~rc~~e~tive ~l~ns anti przceclures

Sleek t~c~k t~ ra~ai~€yin tie ~~cr~~~~ ~~ ~tl ~f its ~nf~r~r~azi~a~:

(..~1 ~ds~~tc ~Z~as ~.v~°;tk~r~ ~;or~#aderti~~li~ ~~~~~~a~n~s with alb ~f iFa ~r~~i~}~es, ('t'r.:f53~-

lE~) ~~eek's cc~mputcr nctwark system is pa.~s~.v~rd protecied. (Tr. 355 ;

(_::} Sleek has ~ ~rc~grarzt tt~.~t s~gre~at~s €s ~c~rif`id~ntir~t inf~,rs`~~kac~~ or trade s~eret~

c~€~ the cornpan}~'s cts pl~t~r n~twc~rk. ("C~. 35Sw56}„

(~) 4~~hAsz Sleek empic~ye~s ~~+ar►t t~ access ~a~~id~~€tial files, a g~s~w~~d is rege~ared;

the p~.~~wcar~9 ~r~rsis that ~ersor l zx~.it~d a~~ess to the i~foc ~~iQsa tin tl~ systerx.

(Tr. 356};

{e j leek's cortiput~r nettivc~r~€ wwass x~a~t ces5it~te rem~+~#ply, ~Tr~ 3~7};

A41ant~#taa3071 v# ~~


#~ All Steele ~rnp3~ye~s have p~s~wvrcl protz=:cioz~s esn heir c~ttpl~ores. tTr. 35~}.

(~l '~Ie~k has a rc~ia~ine pra~tic~ of requiring p~~~te ans~ ct~~ipanies u~h~ are ~ric~dira

f"car ~uor~ vuit~7 Sleek to sign aNan-l~isc~~s~r~ A~r+tettle~t ("t~TpA") even ~efQe~

~l~~k ~rztecs ia~t~ ~ cesntract ~uit.~ that. per~~anlct~py. (~'ro 3S9);

~f~} B~fs~re tl~e ~le~~ by SO t~e~clphc~ne was d~ign~c~. evcryr~z~~ from Jac.i~s~n's t4~rra

sigx,~:c3 a ~c~n-dssclosur~ a~ree~nent. {T't. 1~8};

i i} trek Ita~ non-di~al~s~~r~ ~ ~m~~ts vs~fi~c ~I[ the g~c~~l~ ~s~d ~nrnparsies it ~£t;ali

Zvi;.h i~~ ~annectior, uit the Sleek b~ 5Q ~ra~uct. (`I°r. 243 ;

~}) ~'~t ~t! ti;nes, 5iec~. P~udsc~ l;e~,t ths; inside uf' ~~e ~aec~,~ secret ar~d ct~nf~c~entia].

{-C~, '17~~;

(k) ~~~.~~. er~ipl~a~~~~s ~,~ere ~~c,t even ~~il~~~.d tc~ ~~e the ~,l~si~s~ ssf ~~~ ir~~ic~~ c;f't~~

~~} Sl~e~:'s policy way t~tey ~vc~~Jd fz~~ t~~~iv~ ~ia't~ ~xer~~ ~a c~r~~~~~~y ur~~is~s t1~~t

~or~t~~~v first si e~ a ~o~-c~i~cic~ure agr~~~ai~n4. ~Tr. 2~~# j.

add tir~nally, Sled; re.~~tir~u X11 vendc~~s tc+ sign co~2i~ent alfty a~r~~rza~nts end P3c~t~-

t7isc.l~sur~ ~1.~reei~~~rat~ ~<̀ ~a`Ca,A„) when v~~~rl~:i~~ e~~ith ar f rr Steak. Tr. §1~-?D. ~1~rk ~-yvrkc~

tc sti fie~i t~~t Slc k h~cl ~n ~L~,~ =n~~h ~y~~.snxc and Sc~.i Micr~s5'~~=z~r;s ~c~rp€~ra~ic,n

("~;~i~~"'~ ~is1d it; ~r~d~c~secsr ~~~~c (Tr, '3~9;o t~Za%~~t~r~~s ~h~ c4ep~siti~~~~. test~~~€~~~y c+fMa~~

AI~~=.vi, tfi~ ~ez~~ior .~ppliu~tit~rz Er~~in~~r 4~i~h iv~icr~s;i~ics nth; s~~~~ss.~r t~ ~1~~5~), tl~~t SM~C

~~vcu~ci not i~~k t4 ~,t~st~rn~rs ~an3~~~ t~sf r~ waa ~. nv~-r~isclasr.€re ~~~~er~te~nt i~ ~l~ce, r111awi T~~~.

Tr, 27 .AE1av~i ~1s~ k~~ti~i~c~ ~~~t }~~^ vv~.~ ~v~€t rsc~r io x~te~~~ tiny ~~~~~; ma~~rral ~~it~tte~t~t ~t~z~.

i4ryv;ito's approval and ~e tit+ nc~t do so. Allavdi T~~, Tr. 82-f33. Si~:ck wa:~ x~:asacaable in its

belief` that ~I~1St; v~~o~ald ~~4ns~r both its t~w~itte~~ and ~~r~~1 ~xt~nsion of t3tose ~~re~mextis to keu~r

~l~ek's infc~rsnario€z c:c~rttid~rr~i~i, ~+K:+:~iuse iC t~fiw~d #c~ re~ea~ ~r~y in~'€trrc~~ti~n ~rit~s~ut S~ccl~'v

~pprc~val. Tr.. '773..Sa~Dssan 4rrs~w that Sie~k ~~ntr~lled the ~l~s ~t SM C; r~lat ~~ ts, the Sl~e~k

by Sp ~roduc~; that under E~l~~r's ~~at~meni of ~V~rk (S{3W j, i1 hot~~rwti an a~r~en~~~i witt2 ~le~~:

to kee~a its ir:ft~rtn~.tic~~ e~nzi~erstiat, and ~E~~t ~M~C vv~~zic~ ~t~t give t~~ose fite~s tca Ja,c~f~ Mard

i

Ru~,,~e x~~x~a7f ut ~Q


~~~itha~~t ~uthc~rizatian from Sleek, Tr, 843-~4; J~~k~on Fix. ~f2. t~'a evidence was ~r~s~nted that

SMSC ev~~ vi~lai~d its ~~ntic~er~ti~lit~ to ~~~ek.

Mark and 3~son tiryv~k~ t~stifQd fh~t Sle~~ had a si~neci Cc+ntad~ntzality ~~r~rc~ent uwith

I~yna~ic t~r~~svaticns, a?th~u~h no suu~ a~r~z~nt ~~a~ stttrc~ducT~d i.t~k~ ~vic~~r~c~. Tr, i 71, 27,9,

22"x0, 7S~-'7~9. 5iee_k pact w~s~rt;~~6 oci s~~%eral p~~jects Frith 17yr, iG tns~ouatiuns ~~f~re ireetin~

J,~~lcs~~r~. ~~r. 1~~.:+. ~l~~h tiv~s c~cr~°~~`,~~~~ ~~~~rl~in~ c~iti~ ~~~~tatn~ ~nnr~v<~tio~s k~e,a~~~ it ~o~as ~

rri.itit~~r}~ ~,onyract~~, ~t~~~ ir, str~ss~c~ c~r~tk ~t3~n~i;~l~ry. T~. 1 '~~. ~~~nte~;~}~~~~~tz;~~zs ~~ri2h tae ~~'Al ~~~e3

th;~ ott-~er ~qr~u-r~e~~ts b~i~~ 3inatiz~d {ruo~n~ r~~rit, 2t}~~J~, ~~!~k ~..ryu~l~~ be~~~ working wit}i

I~yttazriir Inr~s~;~~ticsns, ~~~ s~e~.~fir~zlEy IIe~tt ~.ei~, try ~~c:~~C ~r ~c~nGepts az~~ re;:;~erin~a e~f ~c~~~.

i~az the hea~3~hor~~~. "I"r, l~~i-E~'7.

Reid tin~crstoec! ttt~i Ch~r~ was a nrsna~iss::~os~re ~~r~~~nent ~~.t~.vccn ~#~ck az~ct ~3yt~tntc

in~c~vat~~~tzs reg~c~ n~ Bhe ~v~rk ihat 3`~y~ar~ic dick f'€~x S1~e~; c~~cier that a~reeme~i; h~ a~-e~c3 z~

rrc t try c-E~s~:luse Siee~'s r~ra~~i~~s ~r a~~f~rtrs~t~~n 4ti tkz~r~ ~a~€~e~. ~.~id ~e~, ~'r. 23. ~Arhen R~i~3

~~~~s7 : ara ern~l~ay~v cif ~3~n~~;n~~,, ~~ si~~~d ~mptoyra~ent agre~zn~x~t #kaat c.~niainec~ :~

g~~•~~~.~isic~n z~i;~a~di~~~ :h~ ~o~+Y3dentia~ity ~f ~~~~rsti~.'s iraf~?r~s~a~~r,~~~, .ec~, ~~FC~ L~~p, 'T'r. 1 1, t~~ ~

~ ~tcral frzatt~t-, the ~.~`>~~~~~nt:~~~li~}~ rr~~i~i~n x~egi~r~~t hirr~ to keep I~?rr~an~ c infflrn~ati:~r~

conf~~let~tial, _~s u•~:ll ~s tie i~;frrr~~~ti~on gf c'3yrz~€r~i~'s t:ti~te~ta~rs .~rrit~ t~~t~r;~ tie c~~rt~ ir;tic~

~:~ri~ac~. ~~ict T~e~, 'I`r. ~~ ara~ ~,~~ T~~p. ̀I'r. I`?. I-~~ spe~i~~~11y untier~te~c~c~ hat f}3~ cen~er3i~gc

az~ct design work h~ did {7n the Sie~~. b}~ ~0 ~e~dpftrrr~e:~ ft~r 5~~~~ ~.udio vas sr~ et~ing that h~~t

v-~fu~. to Steek anc~ that S~~~k did nit vf~ent ~istri~ut~;d ~a; c~mr€~un ~;~tzs~ fo 4.l~ird par€ie.~, R~i~

C~~p. Tr. 35.

When Mark I~r°yv~,~kQ fiat. mr~t ~~ith Jas~~ H~°di, a ~{:~~t-I~is~lc+sur~ ~gr~.eme~it was sigt~e~

sc~ that the prcd~ict c~ul~ tx~ ~tiscyussed, a~cpr~an~ k~ R~[r. I~r~r~,~k~. `T'r. pp. i9~. "~29, ta,#r. K~ys~~ku

nt~ar~r~~~~~o~, ~r~ ~?i


ai~c~ t~sti~ed that h~ was told by I-~~rdi that he had a signed non-c~isclasure agre~mant wrath

For~cast3L~, tt~e i~tdependent ver~c~~x t~iat znanufReiut`e.~ the pratot3~a~s cif the Ste~~ by 5U

headph~>n~ th~.t ~ver~ fe~azre~ and disp3a}aid to the ~u~t~~ ~# t~~ 2t~t I f"~,S ane$ c,rs Che ~'ona~

C:s'~3t'leri s1~c,+~,~ f~"r. 1713j, vith sct:~~ ~±'th~s~ he~,c~~~t~nc: p~+.rts b~ir~ used fln the Farts ~c~ard,

~1~ek Ex. 233.

t~'h~n a~z~~i~enti~t inf'ae~g~u~isrri ~~s fry acd~c~ by rSar~~ t~-+ ~~arti~& ~~hc~ wire susy~ectid

r~Qt tea be h~ca~~ oy a u~c~~~-~e~~ti~lity ~;~f~e~t~ent, 5~~,~~ fall~~~ci ~~ b}% ~r~~~ii to ~-i~r~i ~;'tat~r~~°

:•"~'.is i~ pa~,pris:ta:~y i~~f~rrt~a~ic~r~, i~ sH~~~c~ neat ~ di$t,~t~~?e.~ t~~ !~s~~~nn~ avit?~c,~t A,~i~~r;t's cc~r~~~~it,

ir2cluc4in~ g~ttin~ bids frorrr ~~h~r ~~rn~rar~~~~,;' b~e:~~se ~t ~~~~s cc~r~ftde~ti~i. Tr. X65-?G6;

3<tcksor~ ~,;;. 77t, Nardi and ~t~c~ Hahn r~s~~~t~~}ed, ~tat~ng tk~~r~ ~+~ras ~c~thins~ tv ~~orry abc~~~t

k~4.c~~sz th~r~ ~v~re ~xc~n-di~clas~r~ s~~;~~n~t~~ats~ ~~ver~rg ~v~;ryt~i~r~~,. "I'r. 76~+. ~a~~ii #~stifi~c~ at

his ~icp~siiis~n ~h~t ever}~ p~xsr~~ and ~.crmp2~y that ti~as in ;~ "t~tss~~ network" ~~r tk~v

c~~v~lc~~m~n~ ~rF~thhfp 5l~ek try 5~? ~Sr~ject, u~hiu~ i~~luc~~a ~are~ t, t~yn~rt~ic, T~' Gc~ocis aid C~-

Unik, arriQn~, ~.~~a~rs, ~~r~ unc3~r a nc~~-c~ts~lc~su~ s r~etne~~. ~-~aPdi, i?f5ll ~ Bap. ̀~`r. 3~7.

~t~~:~z :~AI?a~,v~, r~1h~ i~ ~r~sently the fi~i~i~a~ t>~~1E~~ti~r, Eri~ine~r at ~vlicc~c.~ip, s~aacE~~or

r~z 5~1~~:, re~taki~d ~v c~4c~rs~tio~a tkrat ~~e ~t~c~f~d ~r~~3c ~n t~}e Meek l~~ad~f3c~~e ire C~c:t~be~, ?~kl Cs

~r~~31~~s in ch~r~e ~ft'~~ ~~si~n fir i~~ ~1~~,tro~~i~ C'II o; circuit beard. Alta+~~i ~~~$ tion ~3~~,

l 7, ~xt~, *~~~. die ~irnrkc,cl wine i+rl<uk Tfry~uk~ as ~~~eil ~~ 3~sc,n ~~ard; and Peau Reid ~t ~y~:~mic

lnn~~+r~tic~ns. r~.11awi I~ep, ,Cr, 21-23, He t~~tifiec~ that there ul~:s a non-di~~iosure a~r~ement

~4tween Stcek end ~ivf~C and thaf he ~~~z~~d on9v rct~ase 5f~~k informs€ian t~ Slick, F.II~v~~i

T3~~. Tr. ~3-Z~? and 8:Z-~3.

The ,~rbitratc3r no~c;s that t~e~ arc ~~z~tain s~c~arity l~ps~:s ~ite~ cl by J~cksc~n, iaaeludin~

that thez~ was no ~vicl~na~ that ~ Lek hhd ~nE~~e~! into t~I71~'s e~~ Lc~n~det~tia ity agreements rviti~


E~l~ee, SArt~~> I~yr~~m~c or F+~r~cast {ap~az~~tly ~.c~nirac~i~ti~n~ Mardi's a~ve t~s€imo~y, !o sonic,

~e~re~}, b~:t them vas n~ evidence presented ~y Ja~ks~n that such altered l~.~sc.s, as sv~ell as any

cif the och~rs ~lt~ged by .~ack.~c~n ~~ hive c~c~~rretl, r~s~ite~ i~ s.~ny pul~E~c diselosurc of any tree

e~i~t car u~n~~ential ir~f+~rra~ativrz a['~6eek. Sleek has ~iemoxz~teste~3 "re~sQn~bte st~p~s" ir,

e:;tablisttin~ as~sc3 rnaint~ining, a consistent, cc~m~?any-wide: policy a~r1 a~prca~~a to ke~pin~ its

€~~fi~r~natic,ri " ~;c~r~;t,~~ t~~r~b~ e~ ~4is~i~n~ Thai ~1«~~~~r~t aft~e ~t;~~ti#ary dc~iti'~ion ~~~`~ "~ratSsv

secret.'"

St~~k ~ut~iu ~~id fc~r ~r~ ~~~~~ i~1~ Sl::ek ley Ski ~~~e~,site "s~~a~.4a p<~~e," `~'r,> ~s. 5?5.

Ua~id C1i1, thy: fc~rm~r ~ria;~k~[in~ c~i~ectbc far ~le~k, t~,~ts~~ci than arc=m a rnar3~~zs'rag ,r~r~peciivee

infc~nna~ic~r~ c:~ilect~d o~ a splasl3 page is very ua~lu~~le, bemuse ;~l~~l+. tad ~~v~r~~l tho~~e_cad

~~~p~~ suff~~.i~sttl}~ int~;r~s€~d ~n ~fs~~c's ~~c'tu~.ts s~ahmit t~e~r~ersana~ inforsr~a~ars, includxig

n~r~~es ~~d s:m~il ~~3dr~sses> which ~lteraby ~reat~s v~~u~bl~ "hats ~w~a~s" for S4eek to cc~ntac~ eveT~

~~fs~~~~~ a pr~~~.~et ~i~a tt~~ xnar~~~; it prs~vidc.s ~ "~~~r~,ct sa1~s ~tr~am.". '~'r. ~2`~-~7, ~ ~7. ~s c~~

~e~.iru~.:y 4, ?tlE ;, i~:e s~i~sh page c~ntaine~ ~~jn~~c;t ~~t~rm~tipn t~~r >C3~ ~Err~tiat cu~tr~m~~s,

Ire ~ariy Fz. r~a~ry, ~'t? 114 ail w~~ con~~~tes~ by ~:~ eznpY~y~e ~f.tacksor~'s company, ~ ~-

~~rris R~~ crci,, ~;"orr~zatin ~,~i11~rr~cs~r ~a~il~ "Fr~:~ch~~„} whc~ ~.ske~ fL~> the ~aass~v~.~rd t~ the ~1ash

pa~;~ to see h~d~t ~nan,~' names had b:,en c,~11~c4ed. 't"r, S3 t . ~.t thy., time t~'sl ~vs~s as~:c~ for the

~as~«~r~ of tl~e spl~s~s p~~,~, Gii b~0i~ved ghat Si~ek anc~ 3~cks~n's ti t ~ve~e ado #h~ s~n~e t~ ~

~~ Fr~nch~ k~ac~ pr~vicau~ly h~ipe~I Cx~l ~vit~ the kpl ~Z ~~c ~u t'ii~ a~~ ~,icn the ~sass~ord. Tr.

532.

C1~x Fit}r~.~ar~/ ~3, 2(}l I, ~.iil c~i~iled .Et'e~chy ~~cf ~ske;~3 ab~t~t +~~ta that ~r being ~~ptured.

Sleck fi x. ~3. C;i# ~r~s ~c~r~cerx~ed, b~c_aus~ l~renehy iz~t~i~ated he hac4 liven infa~rm~tic~s~ tv the

!~tl~rtt~ M1A43fJ71 u3 ~~


wrong person and Gil let h rr~ know th~fi it was critical ~o ~nr~ out v~hat ~ja~p~zz~i, ~c~~~se it was

uery° val~a~ai~ inf~rn~a#i+~r~ as~d acCe~s t~ ~t sh€rt.sEd be ~irr~ tad to ~r~e~nber~ of the Sleek srcd Jac~san

tear;is, 'i'r. X33, ~'t~t ~la~~, w~~~n Gi3 subs~:quently ~~ter~~pt~c3 to rezr~eve the nar~~eQ from the

c#atahast, he ~~~as ran~il~l~ t~ het o~i~~ ~E~e s~r4~er; went lty, it ~v~s t~~~nd fha~ the infc~rrnaticsn h~ct

di~a;~p~are~! from the splash pale. Tr. 533-53~, 5~~.

~is~ nn February ~'~', ?~icol~e "~fikki" 'fu1~Y#i.t~ (e~~~,o is ~ac~;sot~'s p~csa~~a) business

rn~na~;er ;~ii~l sits on the ~3<M,~~~;~ ~#" I.~irectt~c~ c~iT S~i~ flta~lio?, ~~~i ~~ ~.n~,il t~ ~t~ ~~ Rogai, ~~c~

of'I''J G~~~~, ~.nd C~l~irs 4a~ir~g: "~a;~i~ Gib i~ ~n~~ ~, I.s£~~.~ f~i~ ~;riait~! Ord ~a1[~z~ "F`r~~,~~~y to

see this AI~1 ~~~t t~;: s~lata, ~vi~eee 'st wc~uE~i b~ ~~~2~zr~*c~, rr%:}ie~~ i~ u~c,utci b~ h~1~.I ari~i ~ufa~ w~ss(~

have a~: ~e;~s ~o it. ~"re~~;hy is iryi~a~ to b~.~y s~am~ t~~rze, Ivr~t su,~~ w~~~~ thiz~~s ~zre i~ r~la~anr~ t~

t~;~. tivE;~sz#e n~.u~ership." ~t~~k fix.:, Tr. t'?tt5-l7, ~.ec~rdirag kc~ Gib, "I~LL`~L" means °`l~~~ghir~~.

cjzjt lotFc~,9} ~'r. 12 ~ 5. ~ice~ ~~. _+ €s az7€~th~r ~'ebr~tar~ '~~~ er ii t~,~rn cill~rtin to ~x~ttc~y in which

Maa~tii~ st~t~s: "Teti ham s~ ethir~~ li~.c sorry, yt~~a j~sst t~~w=~ to ~raish cdatink ~ vid~t~ for 5U or

~~~~thic~g> +~~•~'I! ~:tto i~, T.~t~I..~' ~`~. ~~11,

'Ihe ~~hr~tar~ ~`~` ~ss~~ils in~ic~~~~ tha€1~~3c~~,n'~ ~e~.~ ~~~s atteztl~tirt~ ~c~ steal Sl~~k's

sptasFc ~~~b~ ar~d :h~ rt~~t~rrm;,r irrf~~cna~ot~ c~~ic~it~!~~ ~dtaer~in. ~t'r. X33-~3G. ;ile~k's into ~t

cc,ratr~etor ~~t~~rn x~~d ih~t the ~~rver t~~~ ~e~rj taken fr~t~~ Sisk, along ~vitt~ dhe~ it~#'arn~~ta~n;

sl~e~k no lo~~er had access t~ it at ~F~a~ point i~ tune. ~l~~k`s zn~e~~t c~ntr~ctar tE1en brought the

date bask in~a thr Seek server and cut ~i-Unit off. Tr. 5313-3~. Sleek's rc~~~tra~or was ~t~Z~ tt7

~h~z~, th~~ ~teek's access icy the sp~as~e pa~~ hack been cut vfT; tea c~r~iy person ~vhc~ hay! ~~cess t~

That ~a~e, c~iher than the ~ora~ra~€+~r, +nat~ ~renc~ay~, fir. ~7~. Martin did not kn~s~ if the

approxixnatela 3,7(?£1 consu~2er ~c~r~i~ct tnfr~crrtati€~n was giver r~t~r~ned tea SEec~;. ~"r., ~, X222-23,

R9aants#ta~307t at ~`~


~'~d~r the Car~~c~~~tiality ~?€~avisir~n ~fit~e S~concE t~pe~ti~t~ fit, ce~n~~nt (section 9.2A, .ft.

~;r.. N}, the ̀ tnfor€~~~tio~~ ~n Ehe spl~s~ gage gtuzli~es as a 1rad~ se~,ret ~f Stesk, end z=ras

mi~a~~~x~~arated by rune +~r trnr~ p~r,~a~~s ~rrtploy~ed h~~ sae ~~ r~~re t~f laoks~z~'s c~re~p~r~i~s fir

~k~c ~c~tentiat b ,n~fit tl{at the infc~rtrx~linn pr~vid~~l in cc~nn~~ti~rn ~.h 3a~4~sca~'s Street ~iy 5Q and

Synch taw 5(l t~eadgF~ane3.

~~ck~on ~a~~#~ t~tc- ne~~ S~l;~ ~~udph~n~ to i~c~k dike the ~1~v1~ ~y ~~ i~k~-~s►p~ic+~aes:

~>ccaiis~ r}~at +~'a-~ si~~ eri~ina3 ~lesi~r~ ~a~ l~a~ picice~. "fir. 8~~, ~9~5, Jackson. pack~.~ ter

c1e4-e~ca~mLnt cif his:;*yC~ h~aup~~ne the sa~zt~: t~.c~ that hid ~~;c~ss t~+ Ehe 5€e~~ by ~t~ desi~~ --

.~~;~rs ~~~rdi ~r~~i Beau ~ei~---anti a~~s~ rtot la~ik ~t ~,iri~ a~~~ «k~~ex d~~i~;n £'u~~, Tr. 83Z ~~ckson

s ay irlkim~tely ir~vc~lved 3uit~i thy. s~3isi~~~ aE~ih~ Slvi~ ~uc~io ~~c~d~h+~ms4. '~'r. ~3f,-37, $~,

t~b~-SCB, X75, ~8{~, ~9~-~~, X18. Nardi arld R~ic~ were dir~;c~ted ~~ Jac sr~n t~ ~r~~t~ a ne~v

ki~~ct~z7~,-~e ~c~r ~~.~ + At~d~c~ "~~o~ ~~,ratch" ~Tr. 135 -5~, 1 ~~61; it ~~~ is t~ life the F~e~ts

Ixeac$~~,c~x~e., ~>ut ~,eit~ r. ?"r. t 57"7- 157~. t-~arcl chase t ae sare;~ ~rtacut~~inn ~:~:c~:c~ti fQr tie e~-cu~s

that ~v~~ in ~ ~le~k ~~o~i~.~c~. Tz~. t S~f3.

Thy cx~~i~;rz ~f~h~ ~ ~t ~~= 5p end 5~~ac~ ~y 5~} i~ ra~te~~:~ ~c~ t~a.~~~ ~~-t~~ ~~a ~3.p~i1 f ~,

24 2 l ("T'r. ! ~~?~). ~-§c~vv`e~~r, a.~r~ ~~Srii ~, '~Q~ 1, %I~rdi, ~s asz i~~.e~~nu~n~ ~enir~s~~c~t fir u'~`~, se~si

=rn ~.m~sl to 3~cksvn that att~chct~

~pdate~i ~rravving~, < . fir bat~a wireless ~ns~ ware ua~s'ts, The are

hat; c~iiy ~~r~ be mcxlifi~~ saa~~e, i£t~see~ bc, far iP. I h~tv~~~~

u~Qrki~g ~4ith zn~ €~r. tae wir~l~ss ~~cY~s~~to~Y, ~s w~Il, ~~~ay frt~~ KEe~r a~

company ~c~ as nt~t tc~ n} s~ a beat wh~r~ you ice ready tc~ ~vlt the ~rig~er>

~le~k Exhi~sit?~i.

~ti~rix~ n~ aaaafi r v j 2 ~


Jac~.sa~ agreed that the drawing eras €~f the ~lee6c try Ski ~coduct but gearing zhe CMS r~udiv 1Qgo.

Wh~~z .~~ks~,r~ was a~lee~:-1 u~heth~r he, as a Meek dir~et~sz4 sh~utd have thin c~fied I~i~rk

Kry,~uka ~3~ad turd hire that he t~~cl c~c~iv~d a tlr~c~~vgng s~f a hea~~l~c~ne by ~-Iacdi tte~i was using

~~y~c~r s€~~ff', Jackson c~tlir~ly c~plied:

r~. ~~a, ~ dkda~'~ ~-~ c3~a~'~ t~~v~a~'k s~ ~~a~at~~~iw~itic~tz~ a~ratb t~Z~r~ si.race.

C~. ~3nt v~ja are cr~a the ~3oard?

r~, ig~.

4., I°sue ova #fie ~~~~- of a ~o ~s~r~} t it d~ae~~s'# e ast; #~a:~~.'~ t~ ~~~~e~s

d~svc~d~~d. Tt°~ nit a f~~~~e~r~iaa~ ~ct~ap~~y~, 3~a3 c~~ g•~a~ ~~a~# zn~ to coo?

lackst~E~ a~~+~et3tt~ f~tt h~ w~s,~t~~~ifi~~ 3r~ ~;s~~ ~I~~k's prc~p~rt}~ ~~tas~:, i~ ~~is Q~i~z~n, i[ r~vas

n~ lan{~tr ~ "func4i~ni~,~ cc.~rnp~.n~'.;~

i-l~rdi r~reiv~~i ~t €~~st ~n~ sar~~i~ s~f the ~€r~et ~iy 5t7 ~~~~c~~hor2~s fro~r~ Ni~rry

~~l~ctr~rai~~ in C~.hir~a by tvta~° ~ ~, 2Q l ~ , ~x~9~ii~~ ira a~ ~r~~~k ~~' ih~t d~~~ tc3 iv~art~n th€~t "~~~t3ey

Iuc7k. and sr~und an2a~ita~t;! €'° 'i"r, i6t 5~.! bl 5; ~te~k ;~ . 23~& ~ the o~~nior~ of Tar, ̀ ~u!'s~.l. ~he

~~9~ ,~udia 'r~~adp~~~z~~s ~o~u#<.I ~z~~ ~~Nv~ ~~en cias€ec~ fr~~r~~ sc~at~t~ ~uz~,. e~rit~in ~~S days t:a~su~~i~~

t}~~ gip; it 1 ~`~' "Mast rlat~"}, ~;su1t ~n a headph~n~ t~t~t >~~c~ul~. '"~c;4k and sotsnct a~nazin~;." Tr. 4~:3

~4'?. C: cauls~ ~nty laav~ hapgezaec~ because I2eit~ d H 1"s tts~d th~ie k~~~vled~~ csf Sl~~k's

hea~t~Ilonc trade ~eerets:

A#ianlfl O'td4~Ofi4 vt ~~


h:. ~.e~ h ever ~a~n ~ ! r ~ i~T e d

`Thy ~rb;tr,~t~r tind~ as sr~cfible C~. ~3ursz~l apinlc~n "that. a product of'th~ s~pizisticatiun

x~~id c~mple~i[y of a pair oaf ~ti~ir~d car wzretess h~adph~nes ty;~ic~iy r~uires at l~a5i Asa

[r's~hteen]-mc~r~t#i dev~~a~m~bt cy~;I~ tra ~~si~n, d~vekop ~ri~J r~tt~.lify ~Qr Mass peod~ictica~" ~nci

that ~ ~c~r~l~any w•i,l~ocat h~ac~phgze cr~ez~enc~ ~rc~~zld t~Sce e*:~er~ Iry~l~~r t4~an 1 ~ t~~ont~s €c~

:.~e~~e.ic~~ h~:a~~~y~~~~ ,s. 'fir ~?9-3C1, ~d~S rnd ~~3; Sle~~. Ex~~~t fix, ~, Whip tie 3~3 ~7~~s~th ~'reric;s~

mi~.l~t be b~tse~ ~1~'r~is ~x~~ri~e$~cc: ~t ~ I~sr~~ ~.c~rp~srati~z~ ~xac~~ as ~3~~~ a~zd t~'~~ ~~4~r~~~.rt

~~:vet~aptn4r~i states ~k1a: x~e t~stiti~c~ ab~~,zt, ~~t the tirneliri~: rrft€~e r~,r~res~ncern~r~€ gfdesr.~n work

~~ SAS in Apr;l'25l i t and its ire€r~duc~ior~ ~~' ~~e 5~~~ by 5th h~adpt~Q~ss ira Nc}ve~ra~r ̀ ~~l !did

rr~t re~lis;ic~~€}r al4~r~~ fnr cl~ve~oping, frc-~rn the ~c~unci u~~, ~ n~;v pair ~f ~ea~~~~h~~~e, ~~d starting

miss prc~duetif7r~ th~r~t tiv~th ;xr3 ov~rs~as ve~~c~or, '~'r. ~4~, ~i~~k I~:~pere ~~. 7, The f~.~~i~razor

agrees z~ith L?r. ~tarsa!'s ~~inio~ that the S~~acl~ by ~C1 1 the ~~re~t ~y ~~ ~~d~?h~r~es hid "t~~~

n~~•~;et nucr~, much ~~oner than t~~~~ c~uls~ ~av~ a a~rr~=ire." Tx. 4~3,

.~ac}tsnn c~i~ ~~t v~:fea r~bu!-tal ~xper~ te~t~rt~~t2y Ica 4~he~~r Meek ~~J ~n~~ drat ~~t~l~

tra~l~ ~~°crets in its ~l~e~ by 50 h~atlph~r~ icy tm~~aeth~r ~r rt~i t~~~y ~,~ec~ snisa~~a~c~,~~i~t~~ car ~3ri

t~~~ 4en~th t~f fim~ g~~' the ~I~~relc~prc~~z~t 1:,y~:l~: cry' t~~d~hc~n~s.

At~nER #1d.43~71 vt ~~


~:t~I~iC'I.~U s. S CtF ~., ~'V

I, ~ dai s a` ~t.~ k

A. 3a~~Cc~-,rr ~4#i~~pt~ra~~iaEect ~~~ek'~ ̀~'~'~sc~e ~rQta

C;nder the Flarid~ [Jn"sP~tm Trade eca~t~ .~~t ~`"FT,1~'`~t~"}, #~~e cl~irnaa~t in a trade s~cr~t

a~~ian beam the t~ur~l~n ~f r3emor:~traiin~ that (l }the i~fc~rrr~~.ti~.~n it seeks to pra~te~.t is ~ Made

~.~crct, ~xai~~e(y t13~C i# pcss~ss~.~ ~nr~te sn~~pettdent ~~~r~~ie~ ual~e, thy: ~~s1~c~, c~fttie infrrrr,_ati~r~

is dcri4f~~ f`ram the fact ~i~:~G it ~ r~c~t ~e~~r~.11y ~Crtc~~~n b}~ c'tf~~rs ~vvhc~ rni lat profit frr~m its ~~ ~,,

disc]~.~sti~re, tt~e if~~vrt~ts~i:~n ie ~~~t r ~iy asc~r~ait~~3~t~ ny tt~t~t s~{~~: ~la~s of p~~s€~s~~ {arid it

ci~riv~~ i.t~c~~pcnde~~t ~~~er7n€r~ic vs~u~ .frarr~ th~i ~f~a~# ~.s v~~ti~ ~ss~ ~~} thy# re~or~~hCe st~;~~ ~rer~

ta~.en ~o ~ir~t~:ct its s~:~;r~cy, I~t~. ~itaf- § 6$$.Q4~}~~}a mac! ~b;3; sear ~,g.. ~rnerircxn 1[~ci C'russ v.

f'utrn ~ecafih ~3Er~oci~3czr~it /roc., l~~ ~',3~ l~$47, i~#li~ ~~ t`~ fir. 1~}~8}; Lei v. L~rcoa, InL.. ~3~

5~.2~i 1, 2 {Fl;~. ~`~' 'A i~~g3:j, ":~ Pri~3~~:r c~t~ ~~c~rir~'I'r.~~~ ~~~r~t I,~~v, ~tJnIc~c:kit~ th~'~ecr~is'

t~, ''1`rade S~cr~t' Isi~i~a~i~n}" i ~ U, ivti~rz~i u~. L, ~~v. 1, ~ i-#? (~4~?:~~.

B;~se~3 on tt~e '~stixn+~ny c?~ ~ice~;`s ~xp~tt, I~r. ~#ursal, tie orb ~-atua• t"7rad.s ~izyt. the p~~~l~-

~i~~-~€~~l rr~~.ch~z~~~n~ ttstc} thu ~sv~ral~ ir~i~ r~t~~n e~"t~te siPs~~onv~tts in ~h~~ ~lee~ ~aa~' ~Q headphone

r~;~ssess "ir7d~p~.~~d~n~ ~con~~r~s c ~~~lu~" t~~ v~?ue csf uJi~~ich c~r~ "~€~r ued f~c~r~" the fait tt~€~t they

ve~K~ ta~~ the ~itT~~: ~t t~t~ir nsisa~~r~r}~~it~~icrn} ~~r~a~ ~ r~~°r~11y knt~~rt~" by ethers ;~~~~ rrtight p~cafst

from their u~~ cat discl4suzc and They were "nat re~c3ity ~s ~rtasru~ble" ~y that sar~le ~I~~ ~f

~etscns (~jd 3hey ~eri~~~ "ind~e~n~ent eeonami~ v~altee" f'rc~m c~aat fact wellj.

t' urther, the evi~~:nae st~r~~vs tk~at th~s~ f~~tures r~r~re ~t~bject to "rea~onat~te'` ef~'ar~s ur~dcr

the circumstances i~ ~a n~~i~ 4~S~ir ~e~~~cy. ~~o "~t~r€~ie m~~ures" #cs ~resetve secrc~y are

rc:c~uircd u~ic~er thw FLIT~A, t~nly~ t ai ~h~ ctui~ctar?t have taken "r~~sc~rak~t~ stc{~s" to pr~te~t ih~

FUtarK~ #144301 t of ~~


>~creUy n~ anything it c,onsi~ecs to b~ a txad~ s~cr~t. See, „"Trade Sccr~~~" at

t~ t~,_/.Jw~s~w ~~~~n~f~a ~c~~~/ar~ic~e~%#.r~c#~ ~e~ret~~ h€ i,

tls ~ result, the $~~n6al m~~hazxisrn :rid tFse ~v~xa~l int~~ra~ian of the cornprin~~~~s in the

~l~~.k by SO t~e~dphc~~~: pan be clrarz~ctcriz~c~ as b~i~,~ Sl~~~'s ~t~tut~srily prfltected trade secrets.

~~1a. Stat. ~ c~~~3~~f4?=~.

"I`he F~,ITSt~, at Fla, S2~#. ; ~~8,~?42(.~.), thc;~ defi~-~e~ m~sa~prc~pra*~o.~ ~~: ~ tr~dc s~crei a~:

(~ j ~~ cq~iisiEian of a txad~ ~;~~r~t of ar~~ather ~v ~ ~rsc~n ~vh~ a~c~tivs ~r }~~s reason to

knc°,~ ghat the t~-aci~ ~~~cr~z ~~~s ~c~~,t~t~t3 ~a~v k pr~g~er~ r~~~; ~~-

{b j L}ssel~sitre. or rss~ cif ~ tx~s~~; s~c~•~~t of ts~~.h~~ ~€~tnt~t ~~ ~~~s ~c ira~pli~d chn~~r~e

~aY i~ p~rsr~~ u=~o:

i . U~e~ irr~~a~•o~r zt.~~s try acquer~ ~Cnc~~vl~c?g~ ~~tY~e irad~ secret; car

2. fit the tia~~~ of c#iscl~sure or use, f.~~~v ~r ~~~1 ~e~s~si ta'~c~w that hex or Y~is

4:nawled~e a~`~~e tct~c~~ sc~.ret was:

a.:b~rivec~ fr€~~~ or thr+~t3~h a per~a~ vv~o h~si ~ttilz~~d i:°~~r€aper ts~eans ttt

~~caure it;

~. A.~~~ir~d ~xn~~r c:ir~,u€it~t~~i~e~ ~tiv~i~~ ripe t~„~iuty t~ ca~~intasn a#s s~~re~v

cat 3~rnit ats ~,~; ~-~r

~. I~~riv~d £rr~zn or tc~u~ a ~er~c~~s .~s~hc~ ~w~r~ a dvc~~ t~- i~~ p~rs~n s~e~in~

reti~f~o rnair~f~z~ its s~csecy car lita~it its ~tse; of

:~. ~iefs,r~ ~ ~~sater~} c~~~ ~~4a~r or ~iis ~c~~i~f~a~, ~~~ ~s~ ~aa~~ re~s~n t~ kns~w

tEtat it vas a trade: secret and c~~~t ~:r~c~urlecS~~ cif it hack ~~n ~,r~uirec3 ~y ~cider~t

car m.ist~4c~,

Tb~t ~l~~k's heac~pl~.caaz~ ~rad~ s~c.i~ts en~~d e~~s ire J~c~.sQnts Sta~~#,1S~n~h by a~

h~adphc~~3es is ~ result vf~v~ri~~t is z~f~rreti ~o analc~~aaas ira t~ad~ s rct gases a.s the ir~~vi~ak~~e

disclosure doctrine. That ~c>ctrzne halls ih~t wh~~s aza n~lividua4 ~ac~ssesseq such criczc~I

knov~l~d~e cif si c~mp~n~'s tr~ic secrets, ~Z~ ~~ ~~ te~n~rveat~aly c r ~ve~, ~~rt~nan~~t6y banned

t~tiDr~ta #~id4~~37 j v a 2~


from wc~cicir,g in ~ s~?ecitzc job at a new ~rraptayer, b~La~~e dc~in~ so ~vou(d n~vitabiy lead hirx3,

c.or~scic~usty ~r unconsciously, to d ~cic~sure of his fQrtn~r na~tcsyer'~ trade secreis. The idea Is

that art err~playg~ svh,, wares to svc~eeci ,~~ lsis new ~~sitipe~ wi9i z~hy pan skalis ar+d infc~rrraatic~ lcarn~d

from his former ~mployef, including trada secrets so it ~voul~ 1~e ic~gicat tt~ assume ttu~C his

~c~~i~lcs~, m,~nt by ~ ccfrnpc:titc~r ~~~c~~lci ~r~~rt3+~~xlly r~su?t in ~ ~lis<:It~surs t~f ih~5 inforn~ati+~n, 5'e E,

~.g., 1-`r~rr,~Gui,t ~~. ~~'t:rls~t~r~ t:,'rrsh-r~'•Fr~crrn ~t~r~.~ 1Z? ~c~. '~c~ 2~2, ?3~ (~'Ia, l~i3i. fit. f~~~.19~~~~

suc, c~d.,~r~. I~ow•~, lf'~z~r7 7'r~a~~ ~"~crers Beer~me <S~Za~k~es.• ~'~r#rn~rs ~7~~` t1~~ In~upt~eble 171s~t~~sure

t~oct.-errs, r ~C'ui, J. ̀ l'e~.i~, ~ Ittta:!!, ~r~t~, 16 i (.?D(35}.

"i`~~ss, pursx~~nt t~ t};e rep` tat~l~ ~iscl:.ksu:e doctrine, it is ~oss+bl~ t~~i S(~ek, ~S.,~n~ir,

avva~~e that bcrt~ ~.~id and t-i~rdi ~ver~ n~~v> errsp~ov~d by ~M:~> ~:c~ul~ have sc~a~ght ~n iaxj~inc~i~=~

:~~ain$t ti,ei~ r~e~.~r ~tnpsoy ent. In any ev~~7t, it wad i~tevit~61~ that ~-Iardz ~n~! ~,eid, pass~~si~e

exten~z~~e and intimate kr~~wvl~d~e of ~le~k`s 4~T~ h~a~phan~ pr~r r~rs~ ar~d tAking~ fln the

ic~e~€ic~E ert~p~~vm .nt rates ~~ith ~M~, wc~~id (anc~ ~1id~ r~1;,~ can leek's ts~e s~cr~ts as~rl

ir~~r~z~aor~t~: tF~~tr~ int<3 ih~ ~ynck~ by 50 d ~!eek by ~5~ h~a€tp~no~ie~.

1,c~:sr~~~ e~rr~ter~c~~, cif ~t~€~rs~, txhat )~e~ dit~ nc~t ~cs;~s~es~ a~y~ tr~d~s s~;r~i~~ re~arc~in~ t~~

,~51~~~ ;`ay 5~? ~~~~~~io€~e. Hc~~~~v~r, if ih~r~ ar~y~ ~~sch t~~s$e ~~~.r~cs, ~e ar~u~s t3a~t effete ~~ t~c~

evi~zi~c;~ ghat j~ €~~~ic.i~~t~d i~~ a~~~ mi~~p~c~~zi~ti~n ~f 5~~ek's trade s~c.rets €end, t1~~r~fc~re, #~~

sht}uld scat b~ persc~~11~ liabte fs~x *~h~ a~:ts of gathers in rnisap~?r~pri~ting any dada se~:rets. F-~~

arg~ces, hater r~lic~r ti~at SMS r~udit~ is .t~oi a ~erty xo t:1~►~ bi~racion; #fit even tht~ug~i die ~u~s ~z

n~ajcrrity interest in aMS, it zs ~ sepa~t~ l~~al €nzi~; €4~[ ~(eek u~d nt~t ~~~s~~1. ~ ~laaz» ts~ "paer~:e

t11~ c~ar~crrat~. vegl"; t~tat t~~ did riot ~~r~o~►a11y s~r;quire any t~~ade s~crei~ +~.f ~t~ck, that ~~icl anci

tiardi tiv~re nut :Jacksac~'4 a~~nts, but i~istead yvcre i~rd~ n~er~t ~antracCors r~~~p t~ec~ ~iretl by

SI~1~ to design the Sync by ~U ~rtd Strut by 54 ~e~dph+~ne5; that he did ~~cat ~uthc~r

~ze a~~ direct

assans~ ~s•w~f»~ ve 3fI


Reid or ITardi t~ en~a~e in r~ny wrongful rar unSa~~rfvl tt~.tivity; that, to tt~e ~~ntr~r~f, ilardi and

Reid ~~~:r~ ex~c~ssty instructed to rerum to Sl~t:k any ~ontid~ntiat i~fc~rma~iou fh~t they

posss:ssed srsd not to use a~zy Sleek by S[! design f~atuces in t~-ae c3es~~n o€`the Sync by 5D or

~tAect by~ 50 h~adphone~, ~t~~ there 'ts na ~~~id~r+~e Eh~t J;zcl~san or CMS were aw~ar~ ttcat ~teid or

~i~rdi ~~ad in~s~rporated ~is~k b}~ ~~t d~sf~n #'e~~.res irsta Sh~S produ~is they designed; s~rsd that.

Fci~~ ~r~~i ~-tar~~i ~~=~:r~ zntiil~;~I t~ use tn~ ~not~i~d~~ they ga~ne~t c~~ ft;e de5i~n c~fOTE h~~d~hone

are tt~~: <~; ~i~n ~.,~~rk ~htiy clid ~`~z• ~~,~5 can ~h~ ~yca~ 'tay 5~ pry Strut try ~~7 }~~a~pl~~i~Gs. See ~aag~

63-5~, ~acksc~n's P~:;c-~-~~~.ri~~ ~'indir:~s ~~f ~'~c;t and Ccsr~Glusic~~~ ~CL,r~w.

:ta4.kson r_.~~1 fix:, r, t~~ ~~e:~c~txatly Izabi~ sr+r n-tisa~pra ~~is~sa ~f~;;i~€~'s tr~~~ s~~ret~

~v~tl~c~~t piercing the cozparr~~e v=eil ter without sheik b~ir~g a ~i ~~~c~ ci~~tn a~~irtst Itts ci~n~tpany,

5.~1~. C~rg>or~t~ a~#teers c~~t b~ held liaia3e fc~c "~orniPjtin~~ 4r ps~rti~:i~~t~ing~ in tla~

ct?m.nassit~z~ o~'~s tort, t~r~tether or nat it is also by ~r fea° die cor~~ratic~~t.° .~fcme Lt~~zrt Cr~r~. ~~.

Azc,, 3~J fin. ~~ ~1~, ~1~~1~s (F9. C'.t~ t~.pp. ~~}(J6}, qu~~tin~ <J~°~o~.=~k,~ ~~. ~5~fi~.~,~'~rr~ I~ac., 4E~5 ~.~`~ci

1 ̀ Y~3, ~ ~c~~ {F1. t: t. ,~.~.7~, ~~~ 1 ~. ~-i~re, t~~ cla~sz~ Q~ai~s~ ;la~ksc~r€ f~sr t~Ge ~isa}~~Sr~;p~i~.tz<,n cif

tr;~ci~~ secr~:ts (ie~ ira fart. S€~c~, e_~., ;tr4~ta Ali~t~rfna~rrt ~- ~il~~r ~'o., Irr~'. s'. ~aney,q 96~ S~:?s~ 2~ ,

X11 {~"1. fit. ~~~;. ~~7~ k~~~~~~o zz~s~ ~?~~ ~ap~ra~r~at~c~n of €~~~ e s~~rF~~ as a tort). `~~r ~pr~~, as ~

cc~r~or~ic ~tt~c~r "w:a~ a~=r~rQ ~f car r~tifi~;d" ~he~ use c~t~th~ i~~rc~per7y ~htai~ed t~°ade se~rei3 t+ncl

~;rz~ti~~ ~,E sh,~al+~ ~t~o~•~ ~:r►o~=r~ it ~a.~; °a~:.~~aire~ by i~tprvper an~~t~s,,, h~ car she can ~~ lEclr~

persaz~~~l~ iiab4e fcrc tnisa~propriation caf Erad~ secr~zs. ~'r17C`, Itac, v. Ka~~isha, 93 ~a~. S~ptr, Lc!

6b3, ~i ~ 3-7~ {C~~. Ct. app, ~410~). Irg f'~f~ ,the ~;~liforr~i~ dour€ o#' Ap~~~is h~(d t~t~.t "[lji~~+il~ty

ipnpo~e~i +~n a 4arp~ra~e sl~areh~alc;er, c~fftcer, or dir~ctc`+r w~~~o kno}~s .car }ias reasaf~ t~+ kr~~~v ~b~r~t

~~rti~us misapprcp~iatian , . ~ ~c3 ~I~aw~ iz to ~ccc~r is rr~at v~c~ri~us." !d. $~ 5~7E~.

~twnc~ ~taa~ort vt 3l


SA~iS is ~ c«mg~ar+y is' ~attick~ Tadkse~~ is fh~ majority ~+~m~c ~~acksc~~~ stated ti~at "i a~vr~

SMS." --'rr. 827} as ̀~~cl} a~ its CEO {Tr. IG~~~ and is or. it~~ B~aa~d (Tr. 82?). At 1e~st tilrou~h tine

arbitration h~~rin~, J~cksor~ k~as remained a L?irecte~r of Sl~~k. Ts-. S~'7. J~eksQn knew a:~ a 5teek

E3oar~ ct~err~b~r treat h~ hid a ~c~~z~iary duty to ~ie~~, to took aut fc~~ #h~ Wiest in#erects ~f Slee~C.

`E'r, ~2$, Since 7:~ct~sc-~n sita ors the ho~rs3s cif cti^ier bLa~r~~ and ~~,m~ ~~veral com~$raies l r~r. X27,

~)5 L-~~~j: ~~e is l~r~~iliar b4< :h ;v;~at ~i ane~~~s ~cz be ~ ~n a c7~~d cif L~ z~~;cCcrs, He k~~av tt~~t ~nd~r

t}5~ C~per~ii~ ~~r~~ec~~nt, die ~Z<e~i. a very Near ~o~€~de~ti~lity obla~afi~:~ r~;~~a°t~~ra~ Sle~k's

p.rc.~~~ri4'. 'Tr. X329- 30.

~~~}3i{~ stilt s~rvit2~ ire tie c~~racity cf a ~l~~k ~ir~~ic~r, J~~ksorr ~~~z~ti~i~s~~~~3 in ~~e tart a~`

rnisa~~r~rpri~~~ins~ Sleek:°s tr~d~ se~;ret~ b°y ~i~~~~.in~ Si~1~ tt~ hire Tt~.i~3 a~ci }iar~t€ {t~~e ~ra~~ t~~~

people t6aat ~ta~ksc~n ~:s~~~,~v had ct~si~ned a~`td saxp~:~sri:~~~ the p:~;ductic~n o~ ~~~ Meek ~y ~~~

h~~c~~~t~oz~e? ~Q Thai ta~ey ~~r~utd then as~um~ ~t Si~rtS tl~e id~ntic~i roles they h~ at Meek u~

~i~=s~~~iirA~ ~n~i sourcing a ~ea~lpi~o~e fc~r hi~~s~lf t~aat ~,~c+ul~ k~xr hip "~i~" #rad~rn~r~. € r. 836.

1ac~cson c~Edz~'t ~.ven lock ~t harin~ ~raY~t~~ elsk or a c~esit~n fig tc3 ~~rc~~k :~n t~e'~i°✓1S _~~di~

~r~}ect. Ts~. ~3 :'. ~ri~~~ ~xd ~~a~i'~ n~~~ ei~~.p~~yrz~~tat ~~~~itably ts~d ih~m {~s~nsci~u~[~.~,i~ ~~aeir

~.nsG} irrEpra~~:c~y tb r~1iy ~~~~ ~l}.~:k'~ ~.r.~=3~ ;~ecr~ts, i~acludin~ t~~ ~sr~~al r~e~;h~r~~srn end ~}~~ azniq~e

c,ver~[i int~:~r;~tzc~ei t,fihz ~c, p~r~~~rt~ i~ thy. ~i~~k ~y 5th head~h€~ne, ~rzc~ s~se this in~caEtraaiion ~n

k~~:Is~if c~?' 5 15 Traci J~cks~n, tar~°~eisin~ [heir duty to ~le:~~ tt~ it~ain~~i~a ~.s s~:cre~t Sleek:°s ta~~d~

sec~cis.

;tackson ~i~;ne~ a~f~'+a~ ~[t img~~rtant c~~cis~~ns reg~rctin~ the Sle~~ I~i~adp~nne ~r~j~~.i

(~-tardi I)~p. 'I'r. 3 I9} {"t had 5~} si~st cuff t~:~;~use ~U ~w~antecl t~ si~~ off. H~ wanted ~u f~c

'snvolv~ci."}, r1s he did ~t~r the Meek bye ~Q h~adphtrr~~, ,f~ikst~n w ir~timate{y involve ~n the

d~si~r~ arsci agpr~vaE of ~t li t ##~e ext~ri~r a~p~~rtt~ce ~f~ tk~e Stmt Fey 54 anc[ Synch by 5fi

r~~te~a~taaao~t v~ ~2


h~~dphones. F-(e ~~~ltfaalt~~ at~~i kr~awingty u~ecc! Reid anc~ H~d~"s design even th~+ugh tee knew c~~

reavan~bly shnul~ h~~~~ kra~wa~ that ~h~y vrautcf an~~.7tably ~,reate ih~ desig,~ by c~isa~pr~~ria~ln~

ir~d~ s~crcts Czo~t~ t~~eir fr~~~~ ~rr~p~~ryer. 5~e, e.~„ S'~nfinrna~t~c E`lectr~rztcs Cvr~, u, 7AG Ca,

UxS. L.GC`, fi3~ F, 5a:pg,2ct 114? (S.I~, Flea, 2C~~8), a~"`d o~ ether r~ruz~r:ter, 3~7 ~'~sl. Agpx. 143

r.'~at:d. ~ ;r. ~O ls7}. ~ecording~~•, tte ern ~~ ~etd persaanal~ f li~%~Ie for the onisappropriat on.

~4e~A.`s s~alasn page ccnt~;n# also qu~3i~es as a. t~~~~ 4~er~t i~ t}~~~ ~z ~«s :used same

:i3clep~~td~nt ecor~o.~iic s;alu~, ~€11~ v~ft~~ ~! t3~e ii~fsrn~ati~;n was d~ri~r~d ~rc~rn tl~~ f~ct~ r,}a~i it vs as

{got ~~~~er~liv~ i<s3c>~.,te ~5~,~ c~~t~ .r:: v~~h~ mi~;~t pr°a#"it from ids u:;~: or ~i iusur~, t~~e anfca~•~gatic~n ~~~s

t~c~t readily- asce~ain~t~l~; ~a~~ that ~a ~ ~;!a~s ~f ~er~~z ( ~ it d~.~iv;:s ~~sdep~n~ert ecc+~a~7zza~~

~Jaiz~e from that ~s:.t ~s ~v~.l~;~ ~~~d {?';, tt~ ~t r~~sc~n~ble st~~~ v~~~e t~ke~ tt~ ~rot~ct its s~~r~:cy.

~3. ~ ck. un 3~re~cl~+~d a~ cf~ i~~s ~k

khat:

a a state 2, claarra ~'o~ breach ~t~ ~~u~i~r;,' c~ut~~s u~~+~~r ~t~red~ haw, ~ p1a~t~t~~f ~x~t~t s~~ ~~~

(.i) '~'he de~"endarit awed ptainiif# f~i~uci d~tivs;

~~} ~#~e ~e~vr~~as~ t~~~acher~ tYc~s~ duties, and

(37 Tk~~ c~~~"ersd~.nt'~ t~r~c~~ ~f fiduci;~ry d~ti~~ i~ t~~~ pz~x~rs~at~ ~~us~ cif t~~~

~~mag~s suffer~ti ~y gt~.inti~#'

Ci~-~ac ~y u. ~cxker, k337 Sc~.2c~ ~~~, ~~3 (i~la, ~0t~2).

As ~ I~ir~.~t~r a€' S~sel~, .T~cksan awed a Cdu~:i~a}r tlt~ty tc~ S! '~ tc~ ex~rc s~ dae s;ax~ try

prc~t~:ut ttye int~r~sts cif ~1~~~. Ja~.,k~c~n bt~e ~~s~ the duty d~~ p icipat~n~ in 2~e

rctiaappr~~ri~ti~n of Sle~~'s t~~de ~~crrts which is ~h~ p :~ rnst~ cause ~f damages to SDe~k in the

forzzx of .~~t sales of.~~cksc~ra's hem~t~hae~~ end the attenr~ant last r~ymiii~s.

~,s~ant~~taa~cs7r va 33


C. J~c~:s+~n Psrti~t ,a~ i t t ~

To ~r~gzrl~~ stag a claiz~~ for civil crrn~piracy, s ~lair~ti~ m~sst ai~e~e (a) a c~nspizacy

between to=v or ra-,~re parties (~.i~ k<~ dce ,~ ~rzlawful act or to do a l~.wful act by ur~l~e~rf~a~ nraeans;

(a} the d~~in~ of sor~s~ overt act in puxs~aas~~e of t}~e ~an,~ir~~y; 1(~i) darn ~ t~ gt~i~~#iff as ~a

t'esult 4f the as~~ done under tka~ cansp racy. ~'I~r~r~rz ~`~~•rz G~i~~~ers ~lsso~, Ins. u. C'~rr~~rt~e~`

C;:iz~ra~ ~fr~r~tr~~rn Cat, ~t~ ~€~.'?~l 5~~. '?e5~ {~'I~. 5~' ~K't~. 1933). :~ civil ~et~~n f~~r c!a~~pir~ci~

r~~uires an urt~~cly~in~ ~~ti~,r~~h~~ undert,,~i~g tact v,~h~ch t~stllis izt r~am~~e t~ t~~~ plaintiff.

~'righr t~. Yur°ko, ~~5 SQ. ?d t 1~i2, I l~7 y`la. 5tt~ II:~~A t~3~#), Li~,{~~~a,~• ~~. ~~~~uatstfs; ~7 5c',~~

S~2 (F'la. 19SOj..~4.~h of ii~e ~,o-ca~r~~ir~4~z~ "r~e~c~ c~~ly kt~c~ti~s ~~f'tY~~ ~s~}~~rn~ a+~d Bassist i~ it iz1

same svay ts~ t~~ res~Qr~stbl~ fc7r €~1 the arts c~f~t~is cc-coz~s~iia~xt~ss,'" ,~~'«r~~sfr ~ v. ~i.fr~ic~s,~t~~a, St}3

Sc~,2~3 1278 (Fla.2s~~1~s,, l~~i~,

T2~~ e~~isl~nc~ ~~o~~s that lack~c~~ ~csr~;~~ ire ~or,,~eri with ~thcr ir~diuit# ~s, ~arn~ly ~2~~t3

an~i ~t:~E~i, c~-~ invur~-i~~~at~ t~~ misa prr~p~iat~ d~ s~:r~~~. oaf Si~ek into Ja~:#~~an"~ S~e~z by 5~

and ~y~ch bq 5Q }~ti,ad~hpn~s. ~"~.erm~~r~, a ~r~~u~t ~f the as~s~?r~cy, I~ek h~.s suffered

ciatria~~;s iii th~~ €~~rtr~ ~f~ Ic~st sales ~f 3~cksc~zz's ~e~c }~~~~~s by '~ I~~k ~~.d ~tt~~sJ.~~rit: royalty

pa~~zn~nts ~o ~I~e~. t~cf:~r~in~lyz .l~~~sc~n Y,as actin°~~}~ ~ ;~ig~ted in ~ ci~.~il c~n~pir~cy tc~

mi>a~~r~~rial~ Sl~~~'s i~~d~ s~;crets.

A!(~rttpN1d4307t vi ~~


i3. J ckso~ ~tre ~ i ~dcientia~i A e~m~nf ~ i fir leek

Ir Florida, az~ ~c[ia~ .~c~r breach ~f contr~et ~s~n~ists of ilic~~ primary ~I~:zne~tsa ~ ptais~tiff

sx~~asi ~~i~bli~f~; (1} ghat ~ va3i~i contact was forrn~d bet~~~en the p~,tti~~; {,2~ thaz t3ie otter part~~

failed to ~serfcrrn~ ~.s re~~ired ;,~~ader the ~Qnkract; ~d (3 j ~~t d~n~g~s res~it~c~ from the ~tlege~

'reach. Sn~, e.~'., knc~ly?e,F v. C~.Z7: ~'arg,, 3~E: Ss~.~d t4~2, 1C?~d3 (E'1~, 1st [)~A t~73j.

:~s c~i~,~~s~s~;c~ ~t~ave, S~ctior~ x.24 c~S'th~ ~es;c~z~c~ ~nc~ Restz-~te~! C3~er~ti~~; A~r~;cmer~t

cait~r~~ int~3 ~;fy the parties ~t~ ~pr~t 2Z, %}~ It1(JQint, fix. i~j a~c:[a~es eo "i~trnfid~nt~~lity" Zvi ~~ u~ei~

s,crets ~eang ia~c;i€~~i~d ~z~sr~i~x ~~e dc:~niFian c~f~vhat is "~.t~ra~~es~~ia3 It~forr~~tii~n." There h~

b~~~ n~~ ~:,>»xentian by 3~.ck~~i ~h~i ~ti~e (:~~Ser~~i~ A~~e~nt ~~a~ not ~ ~~a~i~ ~csn~ra.~t b~t~vv~e<

himscl" and ~1~~~:. T~~~ Ar4~itrad~r 1~~~4 fr~t~rtd that Ja~~ss~n rtiis~~Prc~pri~ted S~ k's trade secrets

wt~ic~i r~sultec~ in d~.mages tc~ Sleek in ~,~~~ ~~~rs~ 4f lasc sans of ~a~ks~n's h~adph~r~~s by ~t k

and ~tt~~ac~ant royatt_y ~a;r~n~:rt~ to 51 3 , T~~re~~r~, J~~~s~rn br~ac~~~~ the Up~,r~ating A~reert~ent

end tl~u Cc~raftcteri?i~iiiy }~rn~~i~Yen, i~ p~r~i~:a@ar.

~:, A~ac~4a ~~ itt~#~1~ ~'~~s~~~e~3

.T~~;~,s~~ ~~?~~~in~~~• ~n~ int~ntis~n~ly ~bjc~y~+3 ~ b~n~~t of Sicet~'~ ~orf~r~en3iwl anc~

~,rc'}>ri~ty inFc~rm~~€c~s~ un~~r ti~~ c~~t.~n [~nc~s li~t~ck r~bs~v~: ~tuat cake it ~n uital~l~ fc~r 8~irr~ :c~

do ~v. '4"lie ~~ern~rts o~ ~ c~~irra f~~~~n~~st ~nrac~-itr~en~ ~~~:

{ l } The a~,~i~v~d ~tarS~ ~~ ~:~~:f~rred s ~:nefit ~n tote ~~fendant;

(2) The det'c.ndartt has kno~uie~i~e ~fthe b~nefi

(3 j `I~t~~ d~fendar~~ acc~pied os r~iair~ed ik~e ~et~~~t; az~d

i_~!) ~`h~ circ~im~tances az~ such thmt it mould ~ in~uita~~~ fir the deFe~da~t t~ retain

the benefit wtih~ut p~yin~ ~iir v~Iu~ ~~r ~t,

a,►iara~ ~~~a~~~~t ut ~~


1?~Itc~ R~rtt~r ~~ t7elta ftattn, 927 ~o.?d l t~SS (~l~ ~tfh U~t~ 2QOfi); ~llrnvn C'onctr~~ct~on Carp v

F3~r~trrEr, F3E~ fic~.2d S76 ~~la 4`~ t~Ct~ 195~~}, As 4he Flc~r d~ courts have ~ant~~1 outa "[ajn ~c~.iors

fps- `anjusY ~i~richmer~t' exis~s tc~ pccve~l the z~n~n~fui ~eter~ts~s~ of er~of~~y car prape~ty c~£anathec,

in vialatian €>i bocci conscier~c.e and f~u~zdaa~ezat~I prirzGipie~ ref jus~i~e or equity." Henry A.~

~i<tt~,~r, Inc, v. ~ rraec Prv~., Ir~c,, 524 5~.2~ 710, 71 i ~~'!a. ~d C}Ct~. i X88}.

Thw ~~idenc~ ~}~c~~vs th~f ~l~~k is eniitl~c~ 2~ ret.~s~ve~ ~~t chic claazr~: J~:kst~n ',gas

i~?~in~i~t~l~~ irzvalved ire tl~ie m~sap~rUpa~~#"s~a~t cs#'~1~~'~'s trade secrets ~z~tf E~,~~ util~ze~ ~3t~

iia~~armati~r, tc~ s~Il ~d~al~ars' ~,~~r~h ~f hc°,actp~c~~~ prc~du4t~. ire ?x~satzatur finds t~~t it

wo~aid be iisec~uita~f~ ftsr .~a~ksan tc3 r~t~in t~sa n~fit ~f Sf~;ek's tr~c~~ ~~cr~ts '~~;at ~Za,~f~~ fzir

value fr~r it

t~. ~i:so~`s (,3 i ~ i~~t ~~ ~~d the ~vl~~sa

~< '[`fie k:iry~k~~ end ~~et~k fiD~d teat ~ r~~tda€le~t1-~ induce .7~~1 ~n Intcs ~ut~rin~ ~~to

,~,,~~e I ~ns~ lzav i~ fi1e~~

.i~c~.~~n cont~:n~s ~r3t tie K.~y~~~k~;~ and SI~e~. ~e~u~9~ilent~y in~~a~e~ ;i~ck:~c~n into erlte~ing

in trs~ 5~'a~.! and in in~~~siin~; ire Si~~~C &~ec~~t~s~, fnf~r a~iic~, #}z4y rcpr~s~:rtied that ~~~ ~~~~,9~Q.~6

sit oat in the ~['r~ l's ~~g1s~ c~~ F~~ads" 5el~eci~a~~ f~c ""5~ pr~~u~t line c#~veioprneri ~ in~rer~ic~ry„

~,v3~s ~$.zfE'i~ien~ to ~~~°eio~ ~ very iinzited ~~~r~;.~vti~~ rt.~n of ~JT~ ~:e~c3~hc~n~s, treat it eras ~~~.si~~e

to do ~fl, using :`~~~t efforts,,, in cornpl an~~ ~~ith tie deadlines fov.~d in tie B.LA; and that the

ttrysu~os` years spent develop r~~, rc~~nuf~tchcrtttg and btin~ing to rnar#ce this earphone ~Sroduccs

c~nz~ici~c~ with their ac~:es~ t~s t~ill~:rs ire tt~e c~nsuz~ner a~ad~c~ pro~act ir~da~~~ry have the Yrywkc~s a

su~~r[~r ak~i~7t~ i~ ev~l~~~~, in ali ~~speu~s ~in~l~di~g ft~a~ei~~i), Steak's ~l~iiity tt~ d~ve~ap C.?T~

h~ad~hanes withi~a the 'amev:~rk es~~~slz~hed ~ t ie ~3LA,

n;~a~~rr~~~o~~ ~i 36


These repr~seni~ti~~is, .T~cksnn ar~u~~, ~v~r~ x~~~l~r~cl t~isle~dit~~ by o~nrssi~n ~~f tie fac:

that Sleek was f nanc alt; inca~atale ~~ developing Ll~~ C3T'E he~d~hfln~ a~ aid, much I~,~ within

the deadlines sc:t in th~:13Lt~, ~vi?haui an additiQ~a€ ~3-S mi4tion u~vesEme~t in a~clatio~ tc~

.Tacks~n's ~ i.3 r~si~lis~n inv~stznent, as t~tik~ Krywk~ suhs~~t~~r~tly ~~kzlov~rted~ed in aa'~ e-mail

sent t~~ C~7ilins, 3ac~son's busin~s ma:~a~er. Jac~;sc~n ~tr~ues t~~t nr~ ~maunt ~sf due diligence ~iy

.t~~ck~r~ri ~v~~~uld Pave rinc~v~:-~:~ ghat Sl~~k r~c~d~~3 $~-~ iv~~)l~~rs nor t~tar~,~~~~son's X1.3 t~~~ii~i~~r~

i:~~~cstxrren~ in Sle~~:.

T#~~ ~~em~r,#s of t~~a~tdulen4 ind~.sc~rnent ur~~itr FluridF~ 1~~,Y are;

t l) "f ~~~ r~pre~s~z~t~~~ rt~arle a ~asg~r~sentati~r~ of ~. r~~a~cria! faot,

(2} fC'he rc:~res~ri#ur ~~e~~~~ r~r shcju3~ hive ks~z~wn cf' tt~~ fair 2}= o#' tly4

stat~r:~cnc„

(3~ `T~~e repre en:or inYeracied €hat [hc~ ~s;~~~s~nta~inrs wc~uldzn~3~~~ attc,~t~~r io

ret~ aeaci pct c+~ it; and

(~j "flay ~1~un~i~ s~i'tered injury in ju~~i~~hi~ r~tiance on the s~~pr~sec~iati+~n.

~Tasf~h ~~, Li€~r~v t~cr~`~ ,~crrrk; ~~3 ~~.~~ 3~~, 3£~t~ {~`~~. ~t L~3€u'r~.2~~7~~,

'(1~s~ ~~'r'~'s si r°~~.~1 t~y~ the par~~~s ~ont~ins i~ti° ~~c~ve-r~~~ted exc~l~atory la~a~ ~~ in ck~e

xt,rm ofw~az-€;z~~ties and rspr~~~ntaiions in 5~sti~sris ~, .3 <~~d'~ ~~.~Ii?~:~ i~s~la~e ~aee~ any:! the

F~~rywkc~s ~i~~~~c~ these a(~e~~c~ c.l~ir~s, ~'h~ ~~ril, 2~ tQ ~~ac~ N~veznt~~c, 2~~c~ ~~'f~`s cl~~zr3},

stated that Meek end the ~'~ry~+~~kns hid pc t made any ~~rrs`f~~n repr~sentatic~ns, ~~vazranties ~r

c.<~v~na~t~ ~vitlt respect t~ St~ek, i~~ btis~~~ss, r~.sutts of aps~~~a~'sonsn frs~.nclat cvnsiit v~~~ oc

prospes.tc, c~~ t3 ~~ c~~~c:rirt~ rrf ~`✓I~r~ab~r~s'~ig~ lnt~r~~ts f~ ptire~~~t! ptu~su~t C~ the S~.~'s. Tk~e

evidence and t~s~imony iridicate~t that Jackson hack r:~i~he~ r~c~ived nor regta~sf~d, aid ~~t he

agreci~ that h~ hid no ~tee~ t~ receiv~p arxy ~ar~5 ctu~s, sags car ~dv~r€isin~ ]{~era~urr~; or

AttanPa #14{~U7i v1 ~~


tatferin~ m~rriorandum in order tc~ ~ssi~t hire its ~~.kin~ an ink~~sfinent de~isioa d~ritih respect of

the purc~as~ o~'the Msrnb~;rs~Cip Interests pursuant E~ the SPA's.

c ~~rz~~~~t to Se~tiat~ ~{t)(~) cif t~7e ~P,~'~~ 3~vksvn te~t~s~z~t~d t~~t he ~va~ su~ici~ntly.

:~s~a~vtedg~ahl~ ~anr1 experie~~c~€t ici the m~in~ afinv~~imen#.~ sca as to be ~b)e ~~ evaluate the

~ sk5 and rt~Pr~ts cif his ~n~~estrnPnt in Si~.e~. J'~eksc~n f+.ut~i~r r~prr£e~t~d that ~e hid received €ill

t:k~e infnrrc~ation h~, cansid~:~:vd n~ ~~ssa~y~ or apgrc~~rriate fay d~cadz:~~; vrhet~~r ~;~ urch~~e the

vlern~e~s~ip i~;ter~scs. 5f'r~'s ~~;ti~~~s +. t(fj, (j} ~~d iii. in a~e3itic~, ,T~TM~~~n ~~l1aao~uutcd~eci

tl~~t a!1 iir~ancir~i stt~~e~~~~~~ts E~~e~a~ I~~~Lb~r ~1, ~Cs~9 ~.v~r~ ~s-cr~st~~:c~ t:~ ~t'st~~. SPr1's ~~.ctic~n

2. S 4cr~~. ~^ its€,~1 f, the SF'r"~'s ~Srv~~idc ~c~r x m~r~~r ~~nd ix~t~~r~.ti~~a c~~us~ £mac cl~a:~Iy stags ghat

tl~~ si erg ~~'~^;'s su~~rs~~e all ~rio~° c~c~t ~n~ rvri€ten ~~x r~s~n~.s car une~~~~tan~€irs~s b~t~veen tlz~

~3~arrties. SPtI`s S~cti~n 7.~.

]n ~•i~sv ~~ tY~e ab~v~,~ :Sac~~cn's a~ie~;atio~~ is nc~i ~re~iibl~ i~~t~ tie ~.ry~~~k~~ fi~~.u~iaEerativ

ind~c~d Jacks~~n t~ invest in St~ek by tail`sng icy dss~l€~s~. tt~e "rrtat~ra~ f~~t" that (uitin~~tetfi~) ~3-_ ~~

;~~ ~rlillio~ ~d~iti~,~a( fording vy ~i~i~ tn~~,e r~~~~ pry tc~ ~ie~~ ., d~~~i~,r~:az~~ to ck the

}? ad~iscsr,e;. It'; ic•r~levar~t <~rr~et~~r or not Cr~1t~~~~ c~ l~~.k~ar ~c~rn~ ~:,v~~~r~ c~nl~ after c~it~rin~;

i~ito tk~~~ 5k'~I ;~.~r~cr~~ent ~h~t ~l~~i~; ne~~i~c~ ~~~i#it~c~ f~i7d~z~~t f'~~ Ye~s~ :~'?-~3 ~i~~ti~n can toy

c,f" 3~cks~ar~'s i~as~i~l in~~estmea~t t~3 1.3;~ i~a vi~;~r oft~~e clear nrt~ce its ~ch~ci~:ll~ 2(3 jet) of the

S4~A 1 a~r~~z~aer.t that S4c:~k ~+u~uld z~~ec~ era ~~~i~ti~~aa~ ~b~at ~~~ ~r~st~€c:d aer~c+~~t cif} f nc3s ti~ thie~

tress thin 2 months tr~srn tkle e:~ecution state c+f t~~ agre~s~ent: Wsth actual, ct~arty stated

icz~c~wledg~ tk~at ~t lea r~ the final, ~x~c~aii~an drafE t~f the SSA l ~r~~rs~ent vas ~c~ts~g to cor~t~an

that alert, it was ia~~:umherat vn 3a~ksc~t~ arcd Cs~tli~s tc~, at the v~r~ Gast, inquir~~efcsre s'sgnin~ the

a~;re~m~,rat: "No~sv rrit~cti m~xe €~~dtionai £und5 are g~it~~ tc~ b~ nc'€~icd?" ~~ai ~c~ is no evidc~ce

that tf~ey° did so. The tact that lac~C~ot~ (~.~nc~~ ac~~r~vt~d~~d in the ~ ~m~nt ►.k~at he tivas an

sAtlenta: ~144~~74 v4 ~$


experienc,.d in~~esivr} or ~ail3ns, his bu~iu~ss mare~r, clidrs°E is refi~~ii~~c ~fth~ l~~s x~an st~ilas

~naly~is of Sl~~~.'~ ~nan~i~~s d tie at ~r tack of (heir die dilig~ne~ exp~ist~d p~`ior t~ the

~xcuutisan ~~~Lh~ SPA1.

beat i~ also instructive is C'i~tlirts' reply to ~vtic~~~9 ~.r~v?~c~'s ~~.sE~ drat "I anTji~ipat~ that

;~c~cs are ~c~in~ L~ need ~2 t~ $;z rnit~iaa~ s~vez- the t~cet six to r~~~e rri~.~nts ~n~! vve rs~~d to fg~rr aut

iCF~ ~~st y tc~ het t~xs~t ri~c~r~ey ~~alc~ the s:9a'ca~anyEr' ~n~[~n4 ~~e~z~'t re~ggier ~r~ h;s res~at~~se {se~~t,

;r~~icic.~7t~lty, s;.v~ra! w;~~ks a~~r ~~ r~c~~iv~d ~ic~Z~e3 ~y~v v's I~~f €y l~~' e~»i~} t ~ shack Ann~i

~~rtra~e ~I~z~t r~n~ rr~.i~c ~~p~~~ ~x ~~-;,f~~~~'s prt~~~r,e~! 2~~ t3 t~t~~~~~c~sh ~~~ (se~~ I~~s tin ~t~~:

t~z~~~i~ af~cr cx~cu~9c~r~ u~'~h~ a~r~~rr~~rzt) ~~~a~, iz3de~c~, the fsrst tsYn~: Cc~i9ii~~ car J~~cks~in t~ecam~.

a~3R•f~e Lva~ Ssee3c t~eedec3 ~', ~sii~fiic~nal t~~~-t~~~e a~niliir,,c~ dc~~4~rs. ~nsteac€, ~;~11ins sirn}~1y ~~~~iies

rather ~~~att~r-•~f-~ac.~i, t3~at "arc nc~d ~o figure cart the ~~t s~~ay to g~i that r:~on~y into t~,~

s:~tn~any?'~

Icy ,view of ~~Se a~a~v~, the r~~i~ra~s~r co s n~>t ~ nc't t~~t that S~cks+~n has net his

b~~.~d~a~ i►? proving that tha nr~kos ~z~;I S~~e~, fi~~~lutenti}; in~~t~ei~ :Ta~cl~c+n irate entering ir:

th:; ~~rs 1 t;or t~rez~~i~~~ their r~pr~~~ntat~ons ~.nd ~.u~~~z~tie~ ~~r,~ain~d therein.

~~. ~S: ~• ~3re~c~ '~'~teir F`is~~i~ ~B~tics ~€~ ~~~ s csv~

7aLksc>n <~c~~t.~ntl~ chat the ~.rgn~<~:c~5 br~a~:h their fid~ci~r~ da~i~~ ~~~ S)~e~ end t~~m

by t!-s~tr gs-~ss ms~mars~~~rn~ta~ ~fSl.~~ek, EJnder the f°i~r~d~ ~~ws applying to carpor~tians

az~d ti~nit~c! ]i~bit t,F ~~mp~ni~~, thy. K:rywkos, ~s r~tan~~~r~ d clire~~ors, have tom red

li4ibil.it~~: t~ cl~rccc~ir is abli~at~d to ~iis~3~rg~ his ~izt cs in ~cxf~i faith and in a manz~~r that

h~ r~asa~~~+ty b~~iev~s tea be i~t ~I~~ best iz~~~r~sts ~f'tki~ ct~mpany. FSA §{t~7_f~~3i}{i); ~~e,

~.g„ Rehcr~ita~r~~~r~~a t~d~=is~rs. fnc. ~= Flnyr~, C~~ ~o2d 12~~i ~F'da 1992).

Atlanta ~i+td~071 v1 ~~


El~m~n~s cif ~ c:a€~n ~'or breach cat fiduciary duty are the existene~ of a #iduci ° duty>

end she hrra~h of th~c ~iu~y ~~~:h that it is eh~ proximate e~us~ ~f ehs; gl~intifFs damage.

C'rzw~t(? a7t~ hiorl~, S9 Sc~3s3 1 i`7~, 1 I~1 (Fl. 5`~' DCr~. 2011). ~~A bCt7.0831 ec~difses the

liabifii,f t~f ~iirewic~rs as a pr~su p#ion against ~ ab ~~t~: by s~yis~ag no liabilit}~, unte~s 1) the

~iirc.ctor breac~~~d cr fa iec! t~? per~c~rm his duties ~.s dia~ctc~r and 2~ the breach Qr failure

ccnstit~~t~fi a`) a e~ic~[t~tivr, ai crarzlin~l t~.ur, unless e d'sr~~tc~r had r~~crna~s~~ cause t~ believe

t~i~ ~oric~uct ~va~ 1~~~rte~l c:r nRa cc:~~~~~~~ie. ~a~aae tc~ b~ti~ve hip cc~n~-luct wv~s ~anlati~fui; b)

in~~c~lv~s a ~r~rara~~inr~ ~~~a v~hir...~1 c~ir~Ut~sr deriv~~> sa~her ~ire~'~I~~ ~r iz~dite~il~-, ~a iz~.p~c~~~x

~+E;rsona~ ~~n~:fit; c~j r~.s>~i~~~s isn~ro~~r clas~rib~Ciasxs; cl) f'+~~° c~rnora~ican {c}erav~,ti~~~l~? ~r fur

;:ttar~ho2~1>rs, his a ~~rig~i~us disx~r~~r~ for ~~~ Est int~~~st cif tlx~ c~rp~~~ti~in ~r willful

cr~i~~.o~~~uct; car ~) rt`r~~r ~hr~rt the cflrpr~ration car s~areh~i~crs r~ckiessne~s or an ~~;t oe orni~~is~n

which v~r~s cc~r~~rnitt~ci in bad faith car auit~: ~~naliu3otss p si: or i~ s r€~a~ne~r exh~bitin~;

w~i~ton and svillfut ciisregar~ c~~ hurztan rights, sa~'~ty, o~ ~r~p~rty.

~~SA fiC~~.4~25 secs ~`~ ~h~ s~~n~~rc~ ~`c~r mar:~ger-trse~~r~rs <~~I.L`s. hiie it

inz~os~.s ~ d~:ty ~~~ carp c~r~ rt~~+rt~~in~ ~a3embers, the ci~aty~ ~f~~.re is ~i~ri~t~l t~s i~fr~i~ing ~€ox~

enga~;ir~~ in grc~sb~~~ n~~ii~~nce Qr z~vc~~es~ conduct, iszt~€~~o~tat z-~isca~~dck~~ or a Ian;3e~rin~

vic~l~tfo~~ cif la€v,

Thy I~i~,rida Business ,ttst~~ra~ent Rule rs a bay tv the ~l~.ims by 3a~;~C~t~n ender u~hic3t

~lir~ce~as ~e~; pr~su~r~e~t t~ ~~av~ ;~c tad in good fat`th end ark, this, pz~c~tected Aga ~zst l~cs~su~t~

asser~ir~~ c~~fics'ent cc~z3~u~t. fih~ bus~rz s j~~gme~st rule i~ ~ u~i~iatly c~~~tet~ presaisnpPi~n thy#

c3~4€sirens ~r~ made by disir~~~r~si~d di~~ea,tar~ ors ars anfc~rz~~d basis ~n a goal f~itl~ Elie# tl°tat ~~~

derision wilt ser~c the best interests of the corporation. If the Pla~n~tff c cat cr~r~rccsm~ the

At}an#a iJt4&3071 v1 ~~


~resutnpt.i~n, us:~alfy by specific prcr~f ofec~nt~zct of interest, ill~gal~ty, F~auct, ar bad f~~th, the

rule ~r~hibits the ~g~rt from ~c~ r,~ further a~ad ~xarr~ ring the merits of tie underlying ~usin~ss

s~ec:is%ora ~u~d ~h~ c[ir~ctac. are pr~e~cte~f #'gym pet~~nal I~sbilbt~~. See, ~*.~., Hollynvc~~ri~Tc~w~r~

G'~rtdorrrinium .ass. n t~. FI~n3pt~rr, ~~ ~o.,3d 7$~ (FIB. 4t}~ DMA. '~~?ifl); I:.fn~r~ v. t?~rda, 246 fi.

Sapp 2~t t23":, 12~~-4~ ~l~.F?, ~~~. 24 3).

t~ir~c~v~s ire prcitec~c:c~ b;~ t~-~~ btts~~ess j~.~s~g~n~~t ruEe ender ~i~rici~z l~~~ n~ m~z~~r hot,

poi, their ~us3n€;ss j~sdg~t~~t~t, ~~~I~ss thed ~c~ed ~`rau ul~~~ly, ilt~.~s xY> ~+~~ress~~tel,~, c~* in ~~d

faith. I3ai ~I~zr•buttr~ ~'1~1G, ~'~zr. v. ~ x'.4 Z7~~~., ~ra~:., 31~ ~~.3d 1 I SM:?, 19~~~9~ (I nth Cyr. 2~t►3;~,

cauaGir~~, !*rt ̀ t Ire:. CcF. ~~, .lo~~t~.s, ~7~ ~'.2;i ~~~7, 14 8 (1 l+h Cis, 19~~}, ~s~ei ~'t~~~' v. ~tezhf, &9

F.3~ ] S f 0, ! ~ ] r ~ I 1 ~s fir, i 9~~~, see afs~r Luke ti~g~~r~ ~r~c~n~ Assn.. I~a~. ~~. F'ur~~, 372 ~a.it3

%i2, ? t~ (~1a: 3d L~C;:4 t~76~. further, a r~ir~~tc~r's g;ro~s n~~t~~enc~., ~avith+~ac r~sr~~, ~u~s ~►~t

~c~;as; ~Gt~e brt~ac~a t~f the fi~u~ ary du4y to ~~:~ in ~c~c~ fain,. 1n r~: ~T'~Id L'trsn~y ~'vrr:p~rr~y

l~~ri~~r~~`i~~~ Liti~,r,, 24~f~~ t:~~t, Ch. I;~~1~ '~? {~.~el. C~. ~~~s. ~, 2C~{}4), Gr~~t~t cul~abitity, such as

a ~;c,n~ci~s~ ~zs~e~;erc~ ~€Ga;~'s r~sprsr~sibiliti~~ cat' irttentit~~al d~r~fli~tk~n of~ui~ is ~quire~. I~1.

~rt~~~ssition ~~{' li~~r€ ity ~~;~in~t ~ dir~~;tr~r ~c~r k?a~ fai~i~ "r~q~ai,~~ ~ sk~crs~ri~#~ the t~ig~eLaas k.n~~~r t~~sat.

th~~~` ~ver~ not ~3~~:-l~~<-~r~it~~ tla~..ir ~i~ac~~+r~ ot~lf~at~c~~~~.'° .Lve~rrc~'~11 Ct~~m. ~c~. r. Ft~czn, 9~~~ A.2~

~3 S (Dul. 2t?Q~}.

~ack~vn c~nterds that any r~:a~~sn that ~~ ~~.rp~.~rko~ breactae~ their ~~it~ci dunes t4

"~ie~k i5 that

.. tivh~n faced ~vich ar, c~p~c~r~tznit~ t4 ~~~oid t~~ ~raan~ ~I catl~pse of their

cam an~by s~Il ng tc~ Jaciz~as~ assets rotated ~~ t~~ °`Meek try 5t7" headphone ~'~r

~~~ dottars acrd a per•un~t s~iF.~ rs~yalty, the ~.zy~ukas r~fi4se+3 to Ito s+~,

des~iie the fact ttaatg b~ t~x~ tic~t~, tt~~ ~~n~ any E~~k~d the f nanc~al ~:~pat~ility to

~rin~ the ~ea~~tphr~rs~ #~s ~rndu~ti~rt~-r~ad~ status; rni~~ t~ tens fir~a~tc~ pro~tu~tir~n

itself. The ~vde~c~ s~s~w~ tt~~t in 2E}I~ci~s~ ~ c~f~"$c~~ to tru~ass~tt~ to

t1» C?T~ h~at~phc~~e fr~r~ Siee~ far ~cs~h iuu~ a ~ on-

At~nt~ #tA43~171 ui `'~~


ref~tndabl~ royalty laid in a~1v~n~~~ ot"~ the first y~~ir ~~r~l~per

year far the foil~wn.q tsvt~ y~~rs. '~.s was ~n ~z~trunt of mQncy that was

de~p~r<~t~~y ne€d~d fir Sl~e~ t4 mauttait~z s~tvency or ~ec~me sgiv~nt, Des~it~

t~,4ir~ si~reed a iecc~nn sF~e:~t that i~dica~d agre~i-i~r~t can znc~st of ttz~ r~ajox p~in~s

~f the cieak ~Ja~k~n Ex. ~$t~), inducting these ~nsn~iat terr~ts, the ~;r~wk~s

c~h~.zz~;~~ tk~eir r,~ nds s~ cler~a~cfcyd ~veza Pnor~ ~nan~,y, ~rt~ic~ 3~c~:sQn refused tc~

~i~re. 1`}~e s d~cisic~n to tumtheir becks o€a ita s bona ~d~ nffer s~n~iex~d t,1~e

~àEn}~-~y insc~tvent, tc~ ~.h~ point ~t~er~ it has vi .ally e sad operations issdfly_ In

making that decis~an, the ~.ryw3~c~s co~sciau~iy disre~ardet! the best iz7ter~:sts ~f

Slv~k and ~cte~ with ~rc~ss c~li~~n4e i~~ ~rforrxaing their dutic~ r~ ma~a~in~

~egxlk~cs v~" S#k.. .

Ja~;kso~i s ~c}sc-He~ri~~ Brief, p 1Q{9-101.

'utar~. kry=vk~~ te~°t~~ied that €~~#~~:t~~~ ~e ~i~ ~s~g a~r~~ a+~~iti~ ~l! the teiu~s in the t~ra~~

ìi~~et s~tteng fcsrth :~a~ks~4n`s ~f~er, he si~t~~~ it a~~ ~~y~ ~az~ beh.~iE'af Sleek ~ec~us~, a~ ~h~

ijL3S%lt7lf;T1# S~'iStBSz !~ ~.'s~'~1s "'~C1Y f~1~t,11S~1C't[t ~~23~,s Ot~t,V...~~ ~Y3~ ~1F.' Y1G'1Y~C~ ~~

as a sCartin~ pc~inT on both sid~s,,.(i~'~~ si~z~~d it ~~ ~ac~d faith that vas caut~

negotiate s~r~ethin~ fr~rs~ ~ st~:rt~Ez~, paint ~s~ it n;:èr ~m~ter~~tizert. , .. ̀I'Eie

rie~n~i~tions bake ~~~;~ ~~c~~ c~ what they ~,>ar~~ed ~ where 1h~y were r~c~t

witting t~ g~, ~vherr~ tl~e~ ~u~n~c~ to p~a~ us. , . ,

'I'r, I7$1-179«3.. .._ _. - ~.

in ~ecictist~ that it ti~rt~s in ~~e bust ia~ter~Uts ~f ti~~ c~~a~p~nzr nit tQ gc~ fc~r~a=ark wigs tl~~

1ac~c~.c~c~~ p~o~cs~~i; ~ut~rk ~;.ry-w4:~ c~ has ~?ro~l~ers ~s~~ ~~ar,s~ided wi~l~ ~?~~~csr~~ ~Jyso~:~i, another

Sie~i~ ~aiF~~~:.tor (Ì'~. 1791), ~vhc~ "rk~sse~t~ a g~c~d ~~zmber~ a~`sh~z'e~al~ler~ in ttze cornp~ry." 'I"r.

1 ?~~, ?~I~xk, I~ry~+vk~, fairther test tEec~ that he ~+~~~uttec~ v~ith 51eek's atta~r~ey~ a~~at 2~r~ matter

"cur %~tt~,rneys ttr~ tel~i~~ vs ~h~t ~u~ ~.vc~u~d b~ insQ~v~nfi €Ian Xnnrn~nt ~'e ~ig~ec~ Skis. , , ,").

Tr. 17$.3.

"I`~zis is similar to what Q;.ctsrrect in the Lynndell ~a~~ ~~~xer~ the ~;ourt found ih~i fhe

dire~t~,rs, in zejec#ir~~ ~n ~et~er fer sale cif t#~eiz ~ttpany, ~ver~ aw~r~ of the ~s~n~pRrzy's va3u~, ~znd

d~ElAntm ~'t~43~71 ~t


its prc~~p~~ts artd they c4nsider~~t Ehe offer tiv~th the assistan~~ o~ftn~ncial and ~ega~ a~visc~rs-

There, «~as ~~cs e~~idence tre~m ~rhic~h tc~ infer tea# thcy.ki~~?~,uin,~ly ~i cc~m~l~tely faik~d to

~.~ndertak~ their resp~za~ibili~:e~, th~re3ay bre~chin~ their Eiduczary duty of ~~re, lc?yatry and

Gari~~~~r. Thy L,~~~nc~etl +~irec:t~rs wire fund n~a# to have br~ac~,eck th~i~ duty cif (c~yatty by Fri}ink

tc~ act i~ gco~ faith,

~~'~t~ tPstira~ary of .~~c:~~,on ar~~ ~e~~t~in fur~~te; i~~dxcai~., t~~ t k ~f liabitit~° ern

behalf of t3~~ ~e.ry~~kc~ c~~.fes~d~~nts. Ira resg~~~~~ to quest cns ~eg~~cdi~g v,~~~ther ik~y ~iieved

?.1~~ ~:.,rytivt;c75 ~~t~s~ ire bts~ faiti~ i~~ a~t~r~t~rt ~Q harts; ~lw~l~ car the oLhex ~~~~~r~k~~lt~~r~„ tkey

Moth sc:s€sf~wd that i~;e ~wkos were r~c~~ actta~~ k~~t3 ~°a~ in t~v~ri~~it~~ Sleek.

Tr. ~ ~ 15,

T`r, k~I8~1E119.

t~. C1kay, ~1i~'~ r~s~ect t~ Sts:e~C A~dc~, d~a yc~u thin' tti~

t~ryvrk~~ v~~er~ tr~~a~~ ~c~ ~ur~ t~~eir cc~~rrp~y t~ith res~ct

t~ si#k~c:~ on ~h~ ~b~rt~, zn t~ra~is off' ~lYa;~r bu~ines~

c~ecisacrr~s7

A. i'rtt ~a€~~ ~~~c-- I dc~~"t thi~~ i~ ~~~~s i~~~nt~amab> a , ,

~r'~. ~ kind of ~+~t ~~~f i~zec~~acpetex~~~, ~+~~ ~~s~c#~~~ k~€~~v#erg

~•~~t yc~~ r~ ~~~~~ a bra ~~ae m taey ~~ ins t#, ~~i i~ ~~~ ,~~asd ~i~r~~r~ .

~~~

psi «~~s j~~~ e~cpl~~~ain~ ~c~ ytr~ I ~€or~'t £e~~ I~ ~ #~€y di~i it wi#~ ~Il

ixa~e~a6i~~a~, iilc ~~ey u~6 ~id~'~ ~aaat~c~r~~~~~ ~vh~t i#z~y w~t~e z~si~~s~ me ~a#

that pa~i.€~~.

~nstein:Q. ?tie. ~eirst~i~, i juct f~~ve a f~~~r ~u~s~itsns fs~r Kati.

t~iy ra~sn~ is Ro1~ct ~f~~ch~n ~rs~i t am tote a~tssm~y

for €~a~ i ~r~vkas u~c~ivFdu~lty. Is it f~ic #~ spy that ynu pro~mbly

~.~i~'~ think ~h~ T~.ry~~kcr~ are tE~e best business per~ple in the

wact~`~

Aktar,~~ ~yda3tr~r u, ~'~


~. I# «c~~ld be fair to say ft~a~t ~ test tia~# ~:hc k~ rko~,

~n ih~s par~~~iar irast~n~e, w~r~ r~€~t t~a~ best b~€s~~~e~~ ~e~{st~,

Ci, I3ca yr~u thi€ek that .hey u~i~i an}~,liing ni~ntsc~nat to harm

their cortap~riy, th~ug~`?

~. A~~r~Iuxety ~~t.

~1. ~3c~ yosa this. ~hh~y did ~nytlaang int ti~sz~al~y to t~s~m

the o~.h~r disectc~rs end shar~l~catd s o#~ ~l~ek`?

~. l'~u.

T,r. 1X72-19'73 ,

In g•i~ry r~.! tie abutre, the t~rhi~.~~~~r nc~~ i_hszt Jar,;k~~art his rt~~ ~~~ b~ar~~r~ of ~arc~v~si~

a;~ai tic Kryiv;:c~s l~r~:acr~ed ti~ieir fic~uci~ry ~~rties tc~ 4~e~k key t~a~ir ~r~ss ~is~tianage znt of

S14ek, ~ecuus~ Jaol~sc~ta f~~:s rapt s~Aot~t tl~ n~~ess~ry prof ~f cuz~#`lic:t cif ini~r~sc~ i~lc.gaiity, €'rand,

~r J~~1 f~i~k~ try c>~~erc~~~~ t.Ya~ pz~~u ~~i~~~ t~~t t~~~ i~:ry~~~c~~ ate prDt~cteci from persc3n~l taabilit3~

;~ndcr the ~~Ibri~a £iusiness .Itzd~tn~at ~tt~le.

~~I. L~~~~a~e~

'~I~s:k rriust prc~~ra; tk~~t it s~~~~~'~.c~ ~~~~s ~~~ss~c~ ~y ~~cks~sz~'M alPe~wd rnis~~prr~~ri~~ic~~~

~~f €h~: k~a~i~e ~~tr~.ts. ~~Ict:~zir~z ~~'e~, Inc-. ~. ,~rc~~f'l ~~sp; ~'~ap~ly', Irz-~:. (1r~ r~e hfu~xf~rt fed. ~r~au~,

1~L:J, '~3~1 ~~.~L, 5f~, 6~t~ ~i~at~kr. "~.I3. Fia. 2~31~}~ .~~cks~r~ ~r~u~s t~~k Sl~:~~„ cies~~te z~c~ivir~

ouer ~2 ;pillion in s:a~ital from Jacksc~~ ~:nd sources ihai J~~~Cscfct a~~er~, vtas ust~bl~ tc~ desi~m>

d~velap assc~ tauncEi t ie Sle~'~ by ~t~ a~u that St~~~'~ ~r~utness facture is a dir~~c ~su~t cf t}ie

Krvwk~s' ~r~,s~ ~isrrsana~ement of Sleek aid its resaurc~s. I~~crr ver, 7a~ks<sn t~r~h~r ~rgue~

t~aaT ~2e,;#c reiected d~n'xsoit's offer to in~`use mire e~piiat ineo t~,e corn~anv rind pay rayaltie~ for

ih~ righd to ficaish ~leve~og~~ent, r~aclt~t ancf ~~~1 t~7e Steak Liy 5G ~r~c~u~t ~ctd sc, like t~~~ pl~i~,tif~

~n ,~2tar~€rn, ~Se~k's oevn ct~r~~~a~t, rattt~r the ~~~~sc~r~'~, Es tars ~~ e ofthe damages it s~~ks tc~

At~n;~ 36144971 vt ~


<~rover. There~~sre, lacks~t~ contends teat 5~eek hag failed t~, meet its burcler~ of proving that its

d~nages •very eausec~ ~y the a~Ie~;~d mr propriatian csf tie tr~ad~e secrets by ~acks~an. T"~~

f~r$i3rs~Eor dis~gre~,:~ with ~~~at ptie~~ztio~s~_

~t`}~~ ~UT~,4 prov~tles in pettine~t ~r~z°t:

~r3~ co~aptai~ani is ~.nt~t~~~i t~ re~~ver da~nna~es for i~ais~pgropriati~n. L~azna~~s

r.~n include. bo;.h tk~e ~~t~~~l Ic~ss caused icy s~ p~~sri~t can and the un~usx

~n.tic~Zrnent caus~€~ b,, ~c:isapp~tr~riatir~n ~i~at is r~~si ~~~n isrt~ a~c~csu~tl in

c~rr~~autin~ ms:tual Mass. I~t Eie~ cif i~rit~~~s rm~Gsctxr~d ~y ax~y a[h~r iriet}~uc~5, 11~e

dt n~ges cawed by z~i~~~r~+ps~a#ion ~~ay be .rs~+:~sured ~~r i~3~r~~itio~ cif tiabilii},

Cas a r~vsar~~bt~ r~ry~t;~~ far ~ rn ssp~r~t~rri~tor's utiaautitc~riz~.~ ~tisctn~ur~ car use rsf

~. ~rad~ se~r~t.

I'la. ~ta~.~~B.00~4(t~,

t1r~d~r ~e~tion G$~.C}~'~r, zf the rnis~~~.~ropa-€at~t~;~ w~3 "v~i~lful a~3~.rr~ali~:.iQt~," ~s~ award of

'~~:xerr~pt~r~~" cSarri~~;es tray ~a1sc~ tie ~ad~ ira ~ ara~~sii nit ex~~ing t°+~~ice a}-~y ati~ard mar3~

~z~tzd~r ~~~ti~€~ 6~~.aU4~~! ~.

~J~d~r *~e FCTT'~A> a ~.~r+y~ rna~• r~c~ver ~t~ tta~ ~c~ual loss c~u~~d ~y tti~

mi~a~~r~~~ ri~ti~arz ~,f Made ~~Gr~i iii dl~~orgerza~n~ ~~' ~~ miss pz°~p~-ia~~r's ~~~a~~its 9~ ~~~t~ ~s ~F~o~~

~~r•o~ts are ttc~t ~u~,(zc~Siv~ ~~f ~~ ~?~~ty's ~etu~ lcrss~ Se~zsc~rr:~~tir ~fs~. t:,c~rp. i~. ?',~G ~:'U. ~;'S,

LLB , ti32 F~".Su~p.2d ;147, 1 i ~~ ~~.I:~1. F'la. ~t ~?. Uniu~t enri~~smes~t ciamag~~ ty~i W~t1y are

caicul~te~ by €i~~ in~in~i~~ panty's ~r~~i~~. ~~~..

,~,It~rnativ~.(y, r~t~l in lieu ~rf c~njt~~t ~ richrn~nfi darr~~es, the owner ~,~'~ tras3~ ~ecr~t ~~ui

s~zk da~n~~e~ ~n the #'arm ~f ~ ie~~~r~ttbte ro~~~~~ty. Fla. ~t~t. ~6~~.4t t~. r~a~e~na~~ls r~y~.lty fs

cale.ulat~~ by de~errn rsin~ +ghat ~h~ ~a-r~ies v~j~ul~i have hyp~th~ti~fll(y ~~re~d t~ as a fair rc~va~ty

ai tl~~ tinne t~,e ms~a~prop~iatibt~ s~c~urrecl. Lr"trk,:o v. ~'t2jifszt LT~~., ~~'2 f'. St~~~+.2d l ~2, 18~

At:4'sr~#t~Ad~071 vt ~~


J«~ckson argues that alihou~ SIeek ~sse~ts sus ct~ims against ,auk n p~rsc~n~Ily, S1~ek

seeks tc~ reccs~er the. past end future pr€~~ts it calcuEat~s ~t~~i~ his e~r~~ed ar~d will ears from the

sale aE'tE~e }~r~c, by 5t7 artd ~tr~et by ~~ pratizzcls. t-Ts~,~t~v~;r, he argues that 53~~~ h~ ~r~~~aa~ed

ncj e~+=idens~u a~t~win~ 4hst 3~ck.~c~n r~ceive~i any cif the f~~srn~y ~t calculates ih~k SP~fS received c~~

cti~itl r~:ceivL frucz~ t.~~ site csf ttae Sy€~c by ~fl arrc~ ~tr~et ~y 5Q ~rrodttcts. Thus, ,T~cks~n ~aa~thsr

ar~~,~s that ~!ce4: €~~~ 9~:~Ile~i to pz~s~r~E~ ~taffaci~~t ~via~~r~~,~ r~€"~~nj~sC ens~r.~tsr~cnt" r~.c~mi~te~ v

.Ia~ksvn. `I'h~. ,~.rbi~ratc~r ~4j~cis shag a~~urn~ni ire vii u ~,f €bti a~c~~e-n~Ecd ~indin~;,a t~Y~t J~cksc~n,

~~I~~i is t~ze ~'~.~.~ ~f ~~S and it ~t ie~st its majority, if r~~+ o~a;2•:~ht, ~+u~~ncr and ~s c-,z~ its ~~~s~x i,

~~c,r~;~i3 ~,~riih ~?~i~ ~~d ~iar~i ~~h~ ~e It r~~3 to ~c~rk €~t S~'.'t~ a~n~# t~ha in~e,rpc~r t~~ i~ar

misa~a~mpriatec~ trade setirets caf Si~~~ ~r~~~ ~~cksc~n's 5tr~~,~ by aQ end Synch by St} ~~ea~~ph~~~fls.

the Arbitrator• t~k~ "j~c~icial nt~tic~" tt~~t.i~.e.k4c~~! ~Sro~t~ icarr~ the sale ~~`t~~ ~tre~~`Sy~~i~ by ;CJ

hea~p,~-ion~s. Ste, e.~,>., I~tt~t~?~',~i~ks~~s~.f~cz11}F~~•nt~c~t~°~.~~3~'t~r.~`vrrr%~rfr~3lts~ll~(1-cent'-~a~'t~c~E~Pa~nes-r}vg~.

:i,~3~~ (i 1,

Sl~~k c~ti~;d a~~ ~;~.per~ witzz~s~ ~s? the s~~b,~ect o~ d;~rn~~~~,, ~Zodne y ~.~~v~rforsi, a C;~'~., ~,vtao

s,~~t~~ztitted tvft~ re}~c~r~s: ~r~ ~a~ltial re c~~t (~4~.~k x art fix. 3) ~ns~ a e~~p~l~~t~~nt~l r~~r~, ~'5~~~.

E~:~ert ~~. ~. ~`rc~~vt~?.r~i' ; :~,ric~r?~am 3~~tcas ~u~s ~t~~~~~e~ to k~~~ ir~atia! re~~ri, Sle~~ ~~,~~r~ fix. ~~,

~s Exhikrit !~. ~-~e ~~s ext~nsiv~ ~xr~ce t~~ta~=i€~~ c~~b ~ar~~a~es i~ss~es, incitt~iic~~ rt~y~alti~s ~+nd

lost ~Sr~~ts { Tr. 1 G 5} ar~d pr~~rte~ ~ etrmpei~~~ ~nc~ cr~dibi~ ~;cpc~t o~~ini~n sin d~~nm~;~s ba~e~i

an his sa~ni~ean~ k~Qrvt~c~g~ ~n~ ~x~geriPnc~. 3~.cksc~n di~i not offer ~y ~xp~rc t~~iim~any ran

darnage~,

~'ra~c~r~ c~pine~ that aw~rc~arrg darn~~~s a~ ~h~ ~a~is o~ 1r~st pr~ft~ ~f S?~~k ~t~dis~ would

~xc~t ~ pc,ssibtc, ~ie~ause Sleet never sold i€s,5lee~ by 5s~ h~~d~hc~nc.. Tc, tE}4~-1(345. ~~,

t~;~retar~•, calc~i€~k~~l c~~~asure~ of d<~m~g~s ~~se~t upoe~ d s~ar~er~en~ eF the prc~~is made ~y S~✓S~

An~nts~14~3n7t v, '~


r'~udiu an the safe eft}~~ SynL by SQ ~..r►►~ Scre~t b;~ 5{~ prt~ducts ('I'r. 1~~33 tiv~ich is tie best

~,jeaszire ~fSl~e~:'s ~arct~~~s. Initial ~epcFrt, ~l~elc Exert F;~. 3, ~,~ 2$; Sr.~p~tezt~cntal Repc,ri,

Cravurfor~l ~e~sonably ~~l~tiE~ted dis~arg~rz~ent cif ~i~t~ Auda~s's p~r~~~ b~s~d osi t.~e ~,e~t

av~i~ai~l~ data ~rQc~uc~r~ by 3ac~.c~r~, is~~tudin~ acitzat s~l~s of the S~~c by 5~ aa~sd at~~et ~iy 50

~~vdo~ce~ tt~raa~h ec~rs~ber, 2C~I2, and ~~raye~gi~tin~ ~f fist ~ sans ass uc ~d ~y J~c.kscszz ~:~

da.sc~v~ry ~n €]~~ rye. "~"x., I0~2~;~3, l I~b; s~~ -czFsr~, ~nitia~ ~~~c~~t~ '~3~~k ~~p~~t ~:x, 3, 4~-5~,

ar~~l ~u~~~~l~crx~z~tal R~:~+art, ~1~~k xp~rt ~;~. ~> ~~ 16-"~2, ~te~,~ ~~ d~nr~ag~s i~st~ the f~itare i~

a~c~~~~t~le in it~i~ ~~~c:, ~e~aus~ ~t~.~~ .~ludic~ is still ~~aar etir~~ ~n~f s~#link the ~3~c try ~~i and

~tr~et b}, ~{} ~re~ducts ~i ~h~re ~~a rsc~ u~e~niiia~~e ~viden~ ~ of dis~;c~nEa~'i~ircg the sate ~rf t~:cas~

~rcrt3u~t~. 'Te. 1C1~~-109, ~II~~~-i tesifsed that ~Se was n~~ a~r~ ~~#`y ciiscontz~u~ti€~r~ or gh~se

c?ut ~;y ;iViS ~u~ia i~~`th~ .T~ckscan he~d~har~~s, Atl~+~~i Byp. ̀fir. ~1~3. As ~f the c~~t~ ~sf`t1~iv

.~.~~~~rci, ~.h~ ~shi~sa~cir f~ aware c~~! ~~1f5 is still ~f~~rin~ for sa1~ ttx~ Synch ~} 5~ and Street ~;~

SCE hea~ph~n~~ ~t 1c:~ t t~:z~a~s~h its w~bsit~ {http.l`l t~~ry5£}.~~r~/},

CrF~~~~crd ~g,~cifY~~lly~ x~s~ ~'ar ~t~r~ ~~[~~ s~rrm~ ~i*r~-y~~r gr~,~~~~s~~s p~c,d~.~~ed ~y St~f4

:~s~dic~ prepa~e~l u~ ~~12, which ~wrr~ at~ac~ae to }ass ~~c~~t ~~ ~xk~it~it I, vrhic~ ~e viet~?ed ~s the

n~~s; c«nscr,~~ti~~e as,~3 r~~~nt. ~`r, t b~ 1. ~-l~. ~~.sort~~t,1y e~lrtsl~t~d th~: ~.nst ~fihe tv~J~a p~~~fus~ts

~asc~ up~c~n data prcrv~ded by SN~S A~~dia (Tr. I (35 t ; ln~t4~l Iteper~, leek ~cpe~t E~. ~, ~ i -a3

~r~d S~ppl~mencaf ~.e~ort, ~E~ek ~.~rt Ex. 16-2~~, as v~d~Xl ~s vYhat h~ ~all~d "':~nzribucic~aa

rrt~r~ir~", ~vi-iich is t~~ cantribx~tion that ~~.le ~a~'a p~rtie'ul~.r prc+~uvt ffn e~ ~~a~arc! tl~e ~v~z~il

prc~fitabs`tity cif e h~.si~xe~s. `~`r. 1t~59,

Attans.~~tt~-a~Ott v~ "~~


!'rawfor~ also calculated reasonable r~?yalties p~y~bEe tc~ Sleek «n the ~r~idacts. Tr. Itl~S,

147th; Su~s~I~mental R.~port, Sleek ~x~ert ~~. 4, ~ 3Q-:~5. I~ d~ter~in r~~ a ~°~~saa~abl~ royalty,

Craw~f~r~i l~c+k~d at, ints.r aPtn, the licensing history of'the oarti~~, ineludi~ag th~~rvyalty

p~~~able E~y Si~~k to ~-Unit Brans under the 3r d I.,ic~nse ~+~,r~em~nt {,it. ~xh. I~). Tr, l072-

73. I-Ie t~stife~i that royalty r~tr~s 3~etween rompetitc~rs such z~s ~~~ek ~►~d ~; ;~ ~udic~ tend c,~ b~

I~i~h~r. 'T'r. ,iQ7

Ct~a~~~`c>et~ a~pEi~~ ~a~ r~ya3~;r ~~ saps ~f chi er~tir~ product ~ ~€'r. 3 ~ r~-~5} v~;~lich Ja~ks~n

c~bj~~:ts tu, a~~~c~izf~; that Sk~~~, ~~l~u ~a pr~~~t~i ~ri~y~ e~'i~~r~t.e ~~`Ct~e as~lou~t ~.~f ~ t~~tits ~~n~ c~ ~y

~n,~S teat are; ~~tit~i~~c~ttabl~ tt~ ~t~~k.'s c~airr,~ci tr~cl~ ~~cr~~s, Ivinrt~v~;r, J3s:ks~~ ~;lairns tit

~leel~'s d~ma~e calcul~ti~~ cc~rn~t.te~g° c~ver~c~c~ks the si~r~i~ic; t ~rk~~in ~c~vcr ~,f ~e 5~ ~e~t

brand, .vhich xs e~t€rel~ attrib~€tabie to J~~ks~no ~ve~ if ~Iee4c is entifiEesi tc~ tr~d~: secret

prc,~~cti~;~ fir scsm~ cif t3~~ ~le~k ~a}~ ~~ ~esi~ sea~ures, ~e ~ar~~~rzds that it has ~'ail~d ~o pr~sen~

~.~f~icient ~vid~nc~ as tti~ the vaiu~ s~i tk~ose ~~a~~►r~s--or t ae sere of Sl~~ px~fit~ to 2~c. dis~~r~;ea

t~i<,~t is attr~~cztable to tt~~rr~ ~zzzd ~c~t ether p~~~s cif ~~; ~1~5 h~ad~~~sa~es, cs7+~~~ ~~ota~i~ t ae "`5U

~~;gir." ~r~~r3~. ~~ncc ~~c~c~;~ct ~s ar~nzsr~~ that ~r,~~~~ s~~aul~ be an a~~o~ianz~~rat csfciarn~~es t~~~t is

r~niN ~q~ri~t~f~~le ~a ~iG~c;~'s ~rad~ s~:cret~, that ~~r en f~ti to Jaen ~vhcr c~zd r~~t pr~se~at ~ny~

2`13C~r3taCt; ~i~ (~"S~~ ~11~.

Cr~urts have as=railed r~asa~e~bIG roy~;tti~s ~n cas~s tiv~en t~~re ary no last profits of

piainlift ~t~ firu~ncial ben~r~~ to defend t ~tisibl~rabi~ its trt~~~ s~erc~ cartnc~! d~Yea~miF~~d. Sep,

e.g., ,~~/a~~v, Ir~c, v. ~'*~'r~rde Fin. ~'orp., t~? C~~t. F~pp, 4~' 1?~5 (~~1. C~. ~~~.'~t~~t};}. C~awforc~

testiia~d fhat h~ cti~i r at select the gala fc~r his ~~aar~s ~txat ~vc~alt~ ~~r~uce the l~ig Est d~ti~~~es

r~~irn~~r, captaining that he dig! nit c~s~ saps pr~j~ctio~cs by H~rc3i attached ~s Exhibit ~ t~ his

initia3 r~g~or~> '~le~k ~xp~rt fix, 3, b~ use tease prc~jec~i~ns e~~~led up i~;ing ~t~4~stsntialiy higher

P,~la~tA *1~t43071 vt '~$


t}iara t}ie actt~l results. Tr 10 5-SS, ~I~c3 Crawford us~x) ih~ ~Iacs3 ~caj~ctirrns, he t~sti.f"ied ttaat

tht dasna~~s ~i~ures .vou9d ~.v~ b~cr~ ►~t~uGh, m~~h hi~h~r. Tr. I055. C r~~~forr3'~ lost profits

t~~~ c~yalty calculations b~a~ r~fi:~ble aid cz~~ih~~, ~~rt~~ular~~ where n~ ~orttraa-y ex~Z~

testimony w provided by J~~kson.

Tac~s~n ~,r~ues that ~~y ranjust ich~~a~n~ a~r~a~es are limited to ~ "~r.,~,~ siar# ~~cio~i"

svi~ich is "thy ~sneun~ ~f ti~~e it u~c~ut~ ks~~e tai r~ ~~a~ ttef:n~ t t~ i~de~ c~~ntiy de~~cl~~ its

~zoduc~ ~vit3i~ut ~~ ~aene~~t oaf' ~~;1~~~;'s} Made secrets to S1~e~'s c~ais~; fi r d gas."

S'~rtsorrracrtic E'I~~.. ~"~r~., 63~ F. S~.~p~i.2c~ at k t6~. ~.e~~i~~ i~ re~in~l the ~~ivc-nc~t~.ei E~ mo'n'th

F~erio~ ~pi~s~~ by~ Cdr, ~3=.areal ~<a de~~ r~, dev~lup ~ qu~iii~ fir arses ~rQ~u~ti~n ~n C'~T

~-~ adphone end tt~<~t a cos~~~t~y ~rri o~~ e~dpl~t~~~ ~:~~r~ienu~ ~~oB.~d ta~cc e~r~~ [on,~ ~tzan 1

Tnnn~hs t~~ ~i~velc~p ~eadph~n~~, ~~~p1ed wit~a ~ ~r~dir~~ tf~at a ac~C~ra~a's ac~~ns r~~ardin~ the

ci~si~n a~ad ~~yelo~m~stx +~~ his ~~r~c-~ by 5 ~rc~ lynch icy 5~ h~a~~l~~z~cs ~vazrati~ tk~~ s~v~rd ~f

e:~.cr~3pi~-y cia~a~~s, the r~rbitrat~ar finds ~,az ~r~a; "c~z~c~`s 3-~e~r ~ oc~ ~f raya~y ~a1cul~~i~fAs is

r~di~sl~,

~'rawtc~Ed pr~~~~:~~ ~;hz~2~ s~#'lc~~i ~rc1t~Idis~s~r~~zn~~aC i~ula'~i~r~~ ufiin~; SA~I~ At~~io=~

fig-0ec ~ts fug pr~ad;act l~s, ~°k~x~ch ~r~ aita~hed tc~ etc

~~s~plem~n~al l~~~a~ ~~ Exhibits C`- i d C-~ ~, Tr. 1 t)~"a. ~:~hi~~€ G-

3 cc~t:tair~s Grp°xvfor~'s calc.ulatie~n~ ~,f a i~l-~svinz set ~f ~Sro~~ts, ~ic~iir~~ t~~ t~adpvirRt ~f fl~~

pro,~ectcs~~; ld,

Crawford ~~as r~~osi cc~mf~a~tabY~ using 1~2e It~s~ ~+rq~its cs~ivui~tic~ns on ~'t~rt ~ ;n t}Te

St~pptezn~tiai ~t~p~rt, ~vhi~h ~vea~:

r~tt~nc~ aia~a~'t ra ~~


~?c~,t.~3 e ~ ~~t Pro~ts~~+ ~.~~ ~~nc~[butian ~cgis~)

Cra~4~f~7rc~'4 a~y~t~y c,alcut~ti~a~s t~~r~ on ~~~~€t ~ c~Ft~ie Sazp terrenv~ f~:~p~rt, S1e~k Expert

~'.,:. ~, p. t~3,, s~,~~~ic;~a ~~~~.~~z~e f'u~~r~ ray;~lt~ p~yrn~~~Ys to ps•~~pr_t vatu~ ~~'r. 1~~1 j:

F~~~c ? Y~f~rs ~ "4'enr~ ~ 1~~a~~..._~...._...~...~'~~rr~ 7 ~'c~rs

~~ °r . '~~l ~ 1 e ~ ,

~at~a~t~ *,aa~or~ wt 5{3


R~~e 3 Y~~rs ^~ Years _. ~~`~a._~__~~.~~.~a~s 7 Years

'Ct~e ,~rbitra~cr a~~gts tie ~3~and I,ic~nse ~~x~~;~ ~~t r~,ya~ty raC~ o~~ ~.~.~~~lie~. to ~+IvS~'

"n~~~p~ir~t" ~~et prv~ts Vicar a riot ~f 3 }'~ar~, t~~hi~t~ #~t~ts ~ 1,6~3a?47, "1'hi~ arno:ant of c3arnt~~N~

is f€~r 1~c~.son':~ rni~:a~propriz.~ic~rt o5~~~:'s tr~d~ secr~t~, ~re~a~f; ~f t1~e ~ducis~y ~iu#.y he os~~d ~~~

~Ietk, r~i> pr€~tic:`s~akic~n ir3 ~ c:s'il ~ns~'€z~c~', the ~r~P~ ~~ iiiy co~atcientimi~~y a~re~rr~cr~t e~rit~~ Sle~i~:

ar~d for Eris t~rtjust ~r~cichr€~~nt.

'C'hN arno~~nt ~f tE~~a~;~~s ~~ be awa€~de ~ tc~ St~~~ his t:~~a~ srarn~e~,~~t tero~perc~ 6y the

~r~it~at~r`s ~~Iiefttsat ~I~ek ~rr~ ;~~.cks:~a~ ~.r~r~ r~n~s~t~;~tic~'r~lly at c.~~ssn~~rposes frc~x~ ~k~e b~~inning

U~ their re~~ti~n~hi~. lvit~ 5t~~k l~ukin~ at ~~~k~t~n`s ̀ tnvestrr~~nt pr€mac€3y ~~ ~ means to #'u~~ what

they be.Iicv~d tt~ t~~ ~tiei~ core ~usir~~~~, s~~rn~~y, ~~g~-~rE~ e~rbu~s, w~d~e 7aeksor~ c3~i~f~y v~e~u~e~g

Sl~e~c ~s ~ vehicfe t~ dcr~Ia~ at,~ market his i~~~~phr~n~s. A,[s~, tl3~ :~rbtrstar x~r~es wit} r~irtst~+~a's

c~t~serv~~ic~ta nvt~d af~vc, r~~.st~~i~r, th~~ the Kr~vkt~s did n~i havc ~ ~~ot~ hc~d fti~ busi~~ss. '~"t~~s, ttz~

r'~rbitr~~~r c~s~ syrttp:~tt~izc ~v3th Ja~k:~~n's ~r~~virs~ as~r~tic~~a ~~# ~a~ vY€~s ~~~.tiY~~ m€~~~~t in~c~ SEe~~

ar~d nit, in his opinion, sc;~ir~~ the results t~.at a~~~^n~d vvos~t~ ~ f~rthc~min~ on a ti~ef},

basis. Lik~~vis~, the .r~rbi#r~tor pan ap~r~ciat~ ~`z~ ~ryw~c~s' ~t~~iratio~ w~it2~ what they perc~ive~i

was ,lacksrn's team t~cing cnntrs~i +af t~a~ir ct~tnpany tcs care +gut 3ack~~a~'s gc~~s, to tt~~ ~p~~iren:

exclusiar~ of their ~Eu-~u~i ~szness, H~wev~r, Ja~kso~i's fru~traiians Flo nat jus#i~"y the a~.#ions }~e

took ar w~r~ cak~n o~ hi.s ~eh~f ~~d do nod tak+~ way ~rc~ t ~ Ark t~atc~r's aQnclusic~a fat t~~.~;

has mgt ttre c~sp~cti.v~ ~at~r<t~n e~f ~rt~~£ ~s~ each ~f zt~ ~1a ~zs.

Atlanta A~aa~471 vt


1 ~ ~

B~~ san t~i~ #~ntiin a~~~ ~zatysis set ~`cs~t.h move, the Arbxlra~or ~~r~by ~res~~t~ an

iizterin~ ~on~iusiast that:

Z . Sl~ek's ctairr~ s~f rnis~ppr+~pri~ctic~r~ of Sle~k`s Made ~~~reEs ~a3~ 3ackso~ is GFiANT~L?;

~, S[e~k's ~.lair:~ cif breach by 3~ck~on a~hi~ dut~,~ ~f~c~~fi~~nt~~l~ty to Si~ek is C3Ft,~NT~;I3;

~. St~^e~'s ~.~~irr~ o#'c:ival ~-oz~s~ir~c~- by 3~eks:~rs is tr~.~,.t~T~I3;

~. ~i~ek's cl~int o~br~~~:f~ ~~ .i~d~sc~n ~~~is noz~-dis~tc~s~~re ~~re~rs~~~r~ vrith ~P~~k 3~

Ci ~Z.As~~ T~;~;

a. ~Eeek'~ claim ot`unj~~st;~r~i~~met~t by,~~c:lc~c~x~ ~~ t'~~4II~"~"ED;

6. ~~cksori`y c1~i +hat the E~~~uk~s d Sl~~k. frs~~ctul~~~1y int~uced Jaen into ~n#~r~n~

~r~tca ~Eae ~~'r~l ar~d i€ivestin~ ira ~le~~ i~ ~~~~~, anal

7. ,la~';k5c~ "~ el~i*~~ that the ~ry~,=kt~s bx~achGd t$~eir ~du~iary ~~atic~ tt~ Sleek and Ja kson by

tfa~ir ~ra~s cni~tza~:rtag~c~et~t ~?f .~~~9c is L~~i~I~.

8, ~I~e~ a~ ~tvard~d ~~~ su;rt of ~! t,6~3.,24'1.

9. ,~~II c~th~r ~,i~irng, ca:,unt;;r~;laims ~r~ci ~~tt~~ns~~ i~r lief ~e G£T~t~~"~.

lfii. .4s tt~e ~z~~rsa;i,u~t~ ~ar~y, ~lf;~~. a~; e:~~~tl~ ~c~ its x~~sorab)e ~itc~a~eys` fg~~:~ rsc~t€i ~s~sts. Tc~

th<~t ~~c~, ~i,:rk s~~all n~sic~ ~ ~~r~it~;n s~b~issia~r~ ~f~t~~ asrsna~nt c~fits ~z~~s~~~t~l~ ~t#t~~r~~;ys'

-c:~s end e~sts. zneludan~ cc~~i~c of attorney anvc~ac~~, wt'~i~ ~ 1 c~ay~ of t~~ da~~ of r rust

by s,~~.~res~l cif this Interim A~rarci ~ ;~~~ksott shall ha~~ 1 ~ d~y~ tc+ r~spar~c`~. Tie

r'~rb`strairar wi11 th~~~ ~n~sr a First r~}vare[ .teach Shill ia~~1~d~ a d~#~rrni~~tic~n ~f leek's

r~~.so~sble ~tt~rneys` fees and casts.

~ ~ ' `'Date

Atliarita A'ik~3i~?1 vi '~~

/'M

Wilti~zza H. I*Ie~c~D~, A~.r~~trator .


P~C?C~~' t~~ S~~'.V[CE Bbl E~iA~L & [J,S. ~1.~,1L

kle: Jacksc>n, Curtis 3., I~[ v~. Sl~k .t~,~adio, L LC, et a1

Reference Na. 144t~003314

1, ?vie~~an ~:oraz3~ky, nit a ~arty t~ ttt~; tivsthin aL~ion, her~~y c~~clar~ that ~n lvi~y 43, ?t} z 3 1 s~rve~

t}l~ ~tt~,.l~~G~ Ir~t~:x-i~n ~~z~°ard ~t~ t4~~ p~rtics in the ~sdithir~ actin by Ert~ail and ~y dep~~sitinb true cc~~ie~ thcrec~#'

en~las~.cf in sealed e~rv~~(t~~>es ~arith ~~~st~ag~ t ~rer~n fully ~rep~id, in the United Stags l~ta~l, at Atlanta,

t~ EQF~~~iI~, ~c.~drYs~~d ~~ ~ ft~lt«~~s,

f. I3tuCC ~3c;c:kri.er ~;~t{.

~~tz~ut~ ~1€ilI uil~-1iz~~;

~t1~)(1 r'Ol~~t11~C: ~tCe;:C, ~.~r~t~.,3[~i ~'~C)i?p

Y4'ashir~~t~r~, DC; 2t~t)t)?-3~i)i

t~t~vc4~er~~z:' ~sbIa~v, c;c~c~~

I'~rties ~-v~presentet3:

~i,:. J un ~rloc~n ~~y,

! tl(1 '~?Ja11 St

~t1th Vii.

P~IG~vv ~i'vrk, ivy` l [1C3~15

~'t~~~~i~: ̀ ~ ~ ~'-°'~ 31-~~70~"~

} ~rt~~or~(u)~;;~~ilativ. com

f'artie~ D~eprr~s~ntUti:

C"u~~~tig J. Jacicst~n, Iti

Mr, iZ~~ie~-t D, S~~.eehan

1 X361) ~,~laitc~n $s~ulevaF~tl

~u~t~ 10'?

~caeh~;ster, MI ~P~C}~~

F'h<3ne: 2.~~ £30-5366

:~he~t~an~.a~u~~ers~ ac~l.c~n~

t'arties Re~ares~,.nte~~:

~ ~sc~n Krx~vkc~

Mark F.. Kry~vko

L~e~~nis i~ .Egan ~sq.

i.ynn .~. Sheehy Esy.

~c~fz ~~'i~~ier ~~~y~c~+c;k i c~ ~3e~;~ PC'

~0~ i~,ert~ifi_~nce ~er~tr:~~

S~it~ 3~~0

L~~txc,it, ±v1t ~~?4~-1 t> t

~t2t?'I2(:: ~ 1 ~-~ ~J~-~?~~

deg3rt~ kc~tzs43z'~~st~r,cc,m

(4h~c;3~y~?kat~:saz~~ster. com

~'arti~s R~~r~s~nt~.-d:

~le~k ,~uciic~ LLC

~'au( ̀~'ri~~hea~c~ Esc}.

1~t 5.~~'_ ~~orri~c~n ~t.

11 tl~ F'l~c~r

I~u~l~rad. ~:7~~ ~t7204-~ i l 7

ptri ncl ~ ~~-c~~;~sb 1 aw , ~;c~s~~

2='~rii~~ ~Zepr~~ent~d:~~

~:urtig J. i~cksr~t~, 1_I1


ivtichae[ ~. Iv-~tu~k~

E ci~cl~r~ tmtfer ~enaliy o~ perjury tt~e f~vre~;i~ang to be true ~r~d ~a~`~e4~t. E,xr+:.ufiec~ at ,~tl~~~a,

t,E~RG1A can l'viay {~3, "2t~13.

~~,.~ t~ C ~`1 ~

i3~k.c,ra~~s~y(Fijar~sas3r.~;c}rn


YR~OF OF SERVICE BY EMAIL & U.S. MAIL

Re: Jackson, Curtis J., III vs. Sleek Audio, LLC, et al

Reference No. 1440003314

I, Lincia Samuels, not a party to the within action, hereby declare that on July 1 ~, 2013 I served the

attiched Final Award clatecl July 15, 2013 on the parties in the within action by Email and by depositing true

codes thereof enclosed in sealed envelopes with postage thereon fully prepaid, in the Unifeci States Mail, at

Atlanta, GEORGIA, addressed as follows:

R. Bruce Beckner- Esq. Dennis IC. Egan Esq.

Garvey, Schtiibert &Barerkloiu- Mill Building1000 Yotonlac Street, N.W., 5th Floor

Washington, DC 20007-3501

Phone: 20?-~C>5-7880bbeckner cc;gsblaw.coin

Parties Represented:Curtis J. Jackson, III

Je J un Moon Esq,G~irvey, Schubert &Barer

100 tiVall St.20th Pl.New York, NY 10005Phone: 212-43 I-8700jmoon~igsblaw.coxn

Plrties Represented:

Curtis J. Jackson, III

Mr. Robert D. Sheehan

Sheehan &Associates, P.L.C.

1460 Walton Boulevard

Shiite 102Rochester, MI 48309

Phone: [email protected]

Parties Represented:

Jason KxywkaMark A. I~rywkoMichael E. Krywko

Lynn A. Sheehy Esq.Kotz Sangster Wysocki &Berg PC

400 Reziaissance Center

Suite 3400Detroit, MI 48243-1618Phone: 313-259-$300Began akotzsangster.comlsheehy@kotzsan~;ster. com

Parties Represented:Sleek Audio LLC

Paul Trinchero Esq.Garvey, Schubert &Barer

121 S.VJ. Morrison St.

i lth FloorPortland, OR 97204-3 1 1 7

Phone: 503-228-393ptrinchero rc gsblEiw.cnin

Parties Represented:Curtis J. Jackson, III


I cieclar-e under penalty of peijL~ry the fot•egoing to be true and cor~~ect. Executed ~~t Atlanta,

GEORG~A orb July 15, 2013.

s(~t~jamsaclr.com


in the united states district court for the southern...

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