Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
October 6, 2014 Agenda Packet
&,7<2)52&+(67(5 &LW\&RXQFLO$JHQGD &RXQFLO%RDUG&KDPEHUV WK6WUHHW6( 5HJXODU0HHWLQJ2FWREHU &LW\&RXQFLO$JHQGD 0RQGD\2FWREHU 3DJHRI '2Q6DOH,QWR[LFDWLQJ/LTXRUDQG6XQGD\/LFHQVHVIRU1HZ2VDND,QFGED ,FKL7RN\R '2Q6DOH,QWR[LFDWLQJ/LTXRUDQG6XQGD\$SSOLFDWLRQVIRU5RVHWWH V (QWHUSULVHV//&GED/RV'RV$PLJRV '$FFRXQWV3D\DEOHIRU2FWREHU ''HQWDO3ODQ$PHQGPHQW ' &LW\&RXQFLO$JHQGD 0RQGD\2FWREHU 3DJHRI '2ZQHU&RQWUDFW±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x 7KLVVHFWLRQRIWKHDJHQGDPD\QRWEHXVHGDVDIRUXPWRFRQWLQXHGLVFXVVLRQRQDQDJHQGD LWHPZKLFKKDVDOUHDG\EHHQKHOGDVDSXEOLFKHDULQJ x 7KLVDJHQGDVHFWLRQLVOLPLWHGWRPLQXWHVDQGHDFKVSHDNHULVOLPLWHGWRPLQXWHV x $Q\VSHDNHUVQRWKDYLQJWKHRSSRUWXQLW\WREHKHDUGZLOOEHILUVWWRSUHVHQWDWWKHQH[W&RXQFLO PHHWLQJ x )XOOQDPHDQGDGGUHVVRIWKHVSHDNHUPXVWEHSURYLGHG x &LWL]HQVPD\RQO\XVHWKLVIRUXPWRDGGUHVVWKH&RXQFLORQDPD[LPXPRIRQHWLPHSHUPRQWK x 0DWWHUVFXUUHQWO\XQGHUQHJRWLDWLRQOLWLJDWLRQRUUHODWHGWRSHUVRQQHOZLOOQRWEHGLVFXVVHGLQ WKLVIRUXP x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³$JUHHPHQW´ LVGDWHGDVRI2FWREHU LVE\DQGEHWZHHQWKH&LW\RI5RFKHVWHU0LQQHVRWD WKH³&LW\´ DQG0'.,QF ³0'.´ DQGSURYLGHVDVIROORZV 5HFLWDOV D 0'.KDVSURSRVHGWRWKH&LW\DUHGHYHORSPHQWSURMHFWORFDWHG WKVWQG DORQJWKHVRXWKVLGHRI6WUHHW6:EHWZHHQ$YHQXH6:DQG $YHQXH6:7KHSURMHFWLVSURSRVHGWRFRQVLVWRIWKHUHGHYHORSPHQWRI WKHVXEMHFWVLWHLQFOXGLQJWKHUHPRYDODQGFOHDUDQFHRIWKHH[LVWLQJ VXEVWDQGDUGEXLOGLQJDQGRWKHULPSURYHPHQWVWKHUHRQDQGWKH VXEVHTXHQWFRPSOHWLRQRIQHZPL[HGXVHGHYHORSPHQW E 0'.UHSUHVHQWVWRWKH&LW\WKDWLW RUDQHQWLW\LQZKLFKLWKDVDQ RZQHUVKLSLQWHUHVW KDVDFTXLUHGRULQWHQGVWRDFTXLUHWKHSURSHUW\ WKH ³3URSHUW\´ ZKLFKZRXOGFRPSUL VHWKHSURMHFWEHLQJWD[SDUFHOV EHLQFOXGHGZLWKLQDWD[LQFUHPHQWILQDQFLQJGLVWULFWZLWKLQWKUHH\HDUVLQ RUGHUWRTXDOLI\IRUVXEV HTXHQW³UHGHYHORSPHQW´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³UHGHYHORSPHQW´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³UHGHYHORSPHQW´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x $:$5(LVSDUWRIDPLOOLRQKHDOWKFDUHLQQRYDWLRQJUDQW x 6WUDWHJLFSDUWQHUVKLSZLWK3KLOLSV+HDOWKFDUH x 3UHYLRXVVSLQRXWVWDUWXS0 $DQG,32H[SHULHQFHRIH[HFXWLYHWHDP x +LJKO\IUDJPHQWHGJOREDO(0PDUNHWWRJURZWR%E\ x 6LJQLILFDQW,3SRVLWLRQZLWKRQHSDWHQWDQGWZRDSSOLFDWLRQV x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¶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¶VFRQYHUWLEOHQRWHSURYLGHGVDLGQRWHLQFO XGHVDQLQWHUHVWUDWHRI DFFUXLQJWRQRWHPDWXULW\RUWLPHRIFRQYHUVLRQ$GGLWLRQDOO\WKHSULFHRIVKDUHVDWWLPHRIFRQYHUVLRQ PXVWEHWKHORZHURI $ RIWKHVKDUHSULFHEHLQJRIIHUHGDWWKHWLPHRIFRQYHUVLRQRU % GLYLGHGE\$PELHQ W¶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¶LQIRUPDWLRQDWWKHSRLQWRIFDUH $:$5(DLGVLQWHUYHQWLRQDOGHFLVLRQPDNLQJ $:$5(EXLOWE\FOLQLFLDQVRQSULQFLSOHVRIKXPDQIDFWRUVHQJLQHHULQJLVDGUDPDWLFH[DPSOHRI WKHWUXHSURPLVHRIWKH(05HUD7KHDPRXQWRIGDWDEHKLQG$:$5(LVYDVWEXWXQOLNHDQ\ RWKHUV\VWHP$:$5(VKRZVWKHXVHUZKDWWKH\QHHGWRVHHDWWKHSRLQWRIFDUH$VDUHVXOWWKH XVHUFDQDSSURDFKSDWLHQWVLQDPRUHVWDQGDUGL]HGDQGRUJDQL]HGIDVKLRQ ,Q7RGD\¶V,QW HQVLYH&DUH8QLW '++6UHSRUWVDWLRQZLWKSDWLHQWDQGIDPLO\PHPEHUV x 5HGXFHG2YHUDOO&DUH1HHGV /RZHUXWLOL]DWLRQRIFHQWUDOOLQHV x )HZHUXQSODQQHGVXUJHULHV x )HZHUUDGLRORJ\WHVWV x )HZHUWUDQVIXVLRQV x 3DWLHQW&HQWHUHG&DUH ϭ 3DFNHW3J 'D 3DWLHQWGDWDRUJDQL]HGE\RUJDQVDQGV\VWHPV x 0XOWLSOHRUJDQV\VWHPPRQLWRULQJ x 7DVNOLVWWKDWLVLPSOHPHQWHG XSGDWHG x %HVWSUDFWLFHVFKHFNOLVWDWWKH3RLQWRI&DUH x 3URPRWH7LPHO\'HOLYHU\RI(YLGHQFH%DVHG,QWHUYHQWLRQV 6PDUWDOHUWVGHWHFWPLVPDWFKEHWZHHQSDWLHQWQHHGVSURYLGHUDFWLRQV x 7DVNRULHQWHGYLHZHUVLQFOXGH,&8FKHFNOLVWVDQGWLPHOLQHV x 3HUIRUPDQFH0HWULFV 4XDOLW\LPSURYHPHQWPHWULFV x &RPSUHKHQVLYHUHSRUWLQJ x 5HSRUWLQJLQIUDVWUXFWXUHIRUH[WHUQDOFRPSOLDQFHZLWKTXDOLW\LQGLFDWRUV x 7KH0D\R&OLQLF<HV%RDUGLVD0XOWLSDWLHQWPDQDJHPHQWWRROWKDWSURYLGHVUHDOWLPH VLWXDWLRQDODZDUHQHVV7KHGDVKERDUGWRROSURYLGHVDWDJODQFHLQIRUPDWLRQIRUWKHIDFLOLW\WR LPSURYHHIILFLHQF\DQGSDWLHQWIORZ 7KH0D\R&OLQLF<HV%RDUGRIIHUV &RQWLQXRXVXSGDWHVSURYLGLQJDELJSLFWXUHYLHZRISDWLHQWIORZZLWKKHDOWKVWDWXVDQG x FDUHWHDPZDUQLQJV $OORZVPRUHSDWLHQWFDUHWLPHDQGOHVVWLPHVSHQWRQGDWDLQIRUPDWLRQUHYLHZV x (OLPLQDWHVLQIRUPDWLRQEDUULHUVIRUIDVWHUFDUHGHOLYHU\ x 0XOWLSDWLHQWYLHZWKDWLV+,3$$FRPSOLDQWDQGDYDLODEOHDQ\ZKHUHDPRQLWRULV x GLVSOD\HG 6LWXDWLRQDODZDUHQHVVRUDELJSLFWXUHYLHZIRUWKHHQWLUHFDUHWHDPRIH[DFWO\ZKDW¶V x JRLQJRQLQWKHLUGHSDUWPHQW $FFHVVFDVHGHWDLOVDWWKHSDWLHQWOHYHOIURPDQ\ZRUNVWDWLRQRUWDEOHW x $³5HSOD\´IHDWXUHWKDWHQKDQFHV\RXUDELOLW\WRGRSURFHVVUHYLHZ VRUVXSSRUW6L[6LJPD x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Ϯ 3DFNHW3J 'D ,QDUULYLQJDWLWVUHFRPPHQGDWLRQWKH&RPPLWWHHDOVRFRQVLGHUHGWKHIROORZLQJ 7HFKQRORJ\LVOLFHQVHGIURP0D\R&OLQLFZLWKILYH\HDUVRIGHYHORSPHQWDQGWHVWLQJ x $:$5(LVSDUWRIDPLOOLRQKHDOWKFDUHLQQRYDWLRQJUDQW x 6WUDWHJLFSDUWQHUVKLSZLWK3KLOLSV+HDOWKFDUH x 3UHYLRXVVSLQRXWVWDUWXS0 $DQG,32H[SHULHQFHRIH[HFXWLYHWHDP x +LJKO\IUDJPHQWHGJOREDO(0PDUNHWWRJURZWR%E\ x 6LJQLILFDQW,3SRVLWLRQZLWKRQHSDWHQWDQGWZRDSSOLFDWLRQV x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¶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¶VFRQYHUWLEOHQRWHSURYLGHGVDLGQRWHLQFOXGHV DQLQWHUHVWUDWHRIDFFUXLQJWRQRWHPDWXULW\RUWLPHRIFRQYHUVLRQ$GGLWLRQDOO\WKH SULFHRIVKDUHVDWWLPHRIFRQYHUVLRQPXVWEHWKHORZHURI $ RIWKHVKDUHSULFH EHLQJRIIHUHGDWWKHWLPHRIFRQYHUVLRQRU % GLYLGHGE\$PELHQW¶VIXOO\ GLOXWHGFDSLWDOL]DWLRQ H[FOXGLQJDQ\VKDUHVUHVHUYHGIRUIXWXUHJUDQWXQGHUWKHFRPSDQ\ VWRFNSODQVLQSODFHLPPHGLDWHO\SULRUWRVXFKFRQYHUVLRQ &RPPLWPHQWWRLQYHVWLVFRQWLQJHQWRQDSSURYDOE\ERWK5$(',%RDUGDQG5RFKHVWHU &LW\&RXQFLODSSURYDO ϯ 3DFNHW3J 'D ,QYHVWPHQW&RPPLWWHHPHPEHUVSUHVHQWDWWKH6HSWHPEHUPHHWLQJZKHQWKHGHFLVLRQ ZDVPDGHRQUHFRPPHQGDWLRQ;DYLHU)ULJROD(ODLQH*DUU\%UXFH*XGOLQ'DYH2HWK'DYH 3HGHUVRQ*DU\6PLWKDQG1DWKDQ6WDF\ DEVWDLQHG 1RWH 7KHQHHGIRUWZRORDQVLVDUHVXOWRIVWDWHODZOLPLWLQJWKHDPRXQWRISXEOLFPRQH\WKDWFDQEH LQYHVWHGLQSULYDWHFRPSDQLHVDVHTXLW\7KLVDPRXQWLVGHWHUPLQHGDVDSHUFHQWDJHRIWKH&LW\¶V (FRQRPLF'HYHORSPHQW$XWKRULW\DQQXDOLQFRPH7KHH[FHHGVWKHDPRXQWDOORZDEOH E\ODZE\DSSUR[LPDWHO\7KHUHIRUHPDNLQJWZRORDQVSURYLGHVWKHPHDQVE\ZKLFK WKH&RPPXQLW\FDQVXSSRUWWKHILQDQFLQJQHHGVRIWKLVEXVLQHVVDQGDWWKHVDPHWLPHFRPSO\ ZLWKUHTXLUHPHQWVRIVWDWHODZ:KHQWKHILUVWORDQLVSDLGEDFNWKHGROODUOLPLWDWLRQRQ LQYHVWLQJWKHVHGROODUVDVHTXLW\QRORQJHUDSSOLHV8VLQJWKLVPHWKRGRILQYHVWPHQWLVLQWHQGHG WRLQFUHDVHWKHSRRORIIXWXUHHTXLW\GROODUVRXUFRPPXQLW\KDVDYDLODEOHWRLQYHVWLQEXVLQHVVHV WKDWJURZ5RFKHVW HU¶VHFRQRPLFEDVH ϰ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO&LW\&OHUN %XVLQHVV ,7(0'(6&5,37,2135(3$5('%< $SSURYDORI(OHFWLRQ-XGJHVIRUWKH1RYHPEHU*HQHUDO(OHFWLRQ $DURQ5HHYHV &281&,/$&7,215(48(67(' 0RWLRQWRDSSURYH(OHFWLRQ-XGJHVIRUWKH1RYHPEHU*HQHUDO(OHFWLRQDQGDXWKRUL]HVWDIIWR DSSRLQWDGGLWLRQDO(OHFWLRQ-XGJHVLIQHHGHG 3DFNHW3J 'D >ŝƐƚŽĨ:ƵĚŐĞƐĨŽƌƚŚĞEŽǀĞŵďĞƌϰ͕ϮϬϭϰ'ĞŶĞƌĂůůĞĐƚŝŽŶWĂŐĞϭŽĨϱ &ƌĂŶĐŝƐƌĂĚůĞLJ >LJůĞďƌĂŚĂŵƐŽŶ ŚƌŝƐƚŽƉŚĞƌƌĂŶĚƚ ŚƌŝƐƚŝŶĞůĞŵĂŶ DĂƌŐĂƌĞƚƌĂŶĚƚ DĂƌLJůůĞŶ ZŽŶĂůĚůůĞLJĂƌŽůLJŶƌĞĐŬůĞ ŚĞůƐĞLJŶĚĞƌƐŽŶĂƚŚĞƌŝŶĞƌŝĞƐĞ ĞŶŶŝƐŶĚĞƌƐŽŶtŝůůŝĂŵƌŽĞŚů >ŝŶĚĂŶĚĞƌƐŽŶDĂƌĐŝĂƌŽǁŶ DĂƌLJŶĚĞƌƐŽŶŚĂƌůĞƐƌƵƐƚ WĞŐŐLJŶĚĞƌƐŽŶ<ĂƚŚƌLJŶƌƵƚŝŶĞů ĂƌďĂƌĂƌŵďƌƵƐƚĞƌZŝƚĂƵĞŐůĞƌ ĂƌůĞŶĞƐŬĞ:ĂŶĞƵƌŐƐƚĂůĞƌ :ƵůŝĞƐƐĞĨ<ĂƌĞŶĂŵĞƌŽŶ EĂŽŵŝƚƌƵďŝŶ,ĞŶƌLJĂŶĂůĞ ŝĂŶĞĂƌůƐŽŶ <ĂLJ;>ŝŶĚĂ<ĂLJͿƵŶĞ DĂĚĞůŝŶĞĂŚƌ:ĂŶĞĂƌůƐŽŶ ĞǀĂŝůĞLJDĂƌƚŚĂĂƌůƐŽŶ :ĂŶŝĐĞĂŝůĞLJ'ŽƌĚŽŶĂƌƉĞŶƚĞƌ :ĂŵĞƐĂŬĞƌ'ŝŶŐĞƌĂƌƐŽŶ :ƵůŝĂĂŬĞƌŵLJĂƵĐƵƚƚ >ŝŶĚĂĂůƚĞƐĂƌďĂƌĂŚĂƐĞ <ĞŶĂƌƌLJ^ĂŶĚƌĂŚƌŝƐƚŝĂŶƐĞŶ ĂƌŽůLJŶĂƌƐŶĞƐƐWĂƚƌŝĐŝĂŚƌŝƐƚŽĨĨĞƌƐŽŶ ZŽŶĂƐƚŝĂŶĞŶŝƐĞůĂƌŬ EĂŶĐLJĂƵŵĂŶ^ŚĂƌŽŶůĂƵĚĞ ŽƵŐůĂƐĞĂƵĐŚĞŶĞ:ŽĚLJůŝŬĞŵĂŶ WĂŵĞůĂĞĂƵůŝĞƵŚƌŝƐƚŝŽŽŬ tŝůůŝĂŵĞĂƵůŝĞƵ<ĞǀŝŶƌŽĂů >ŝŶĚĂĞĐŬĞƌ:ŽŚŶƵŵŵŝŶŐƐ >ŝŶĚĂĞĞďĞWĞŐŐLJƵŶĚĞƌůĂ >ŽƵŝƐĞŚƌĞŶƐ'ĞƌĂůĚ;:ĞƌƌLJͿĂůůŵĂŶŶ DĂƌŝĞͲdŚĞƌĞƐĞĞůůĂďĞŶĂŶŝƚĂĂƐŚŽǁ ůĂƵĚŝĂĞŶĚĞůŽůŽƌĞƐĂǀŝƐ ĞtĂůĚŽŶĞŶĚƚƐĞŶ:ĂŶŝĐĞĂLJ WĂƚƌŝĐŝĂĞŶĚƚƐĞŶDĂƌŝůLJŶĂLJ ĂƌůĞĞŶĞŶŶĞƚƚ^ŚĞůďLJĞŽĞƌ EĂŶĐLJĞƌŐĞƌƐŽŶĞǀĞƌůLJĞƵƐ dŽŵĞƌŶƐƚŽƌĨZŽďĞƌƚĞďƵƐ :ŽŚŶĞƌƋƵŝƐƚ ZƵƚŚĞĐŬĞƌƚ :ƵĚŝƚŚ;:ƵĚLJͿĞƌƐĐŚĞƚ tĂLJŶĞĞĐŬĞƌƚ 'ůŽƌŝĂĞƐƚ >ŽƌƌĂŝŶĞĞĞĚƌŝĐŬ >ŝŶĚĂŝƌŶďĂƵŵ ZŝĐŚĂƌĚĞŶŶLJ WĂƵůŝƐƐĞŶ :ŽŚŶĞƐƚĂnjŝŽ ƌƵĐĞũŽƌŐƵŵ ^ŚĂƌŽŶĞƵƚƐĐŚůĞ DŝĐŚĂĞůůĂĐŬDĂƌũŽƌŝĞ;DĂƌŐŝĞͿŝĐŬŝĞ >ŝƐĂůĞĞŬĞƌZŝĐŚĂƌĚŝĞƚŵĂŶ DŝĐŚĞůĞůĞƐŬĂƌDĂƌŬŝĞnj ĂƌůŝĞŶŶĞŽŶĚŚĂƌůŝĞŝdžŽŶ ƵĚƌĞLJŽƌŐĞŶ>ŽŝƐŽƵŐůĂƐ ŝůů;tŝůůŝĂŵͿŽƌŶWĞĚĞƌƌĞƐƐĞů ĂŶĚĂĐĞŽƌƐƚ:ŽŶŶƵďďĞůƐ DĂƌLJƌĂĚĨŽƌĚĞďƌĂƵĨĨLJͲ^ŵĞƚ 3DFNHW3J 'D >ŝƐƚŽĨ:ƵĚŐĞƐĨŽƌƚŚĞEŽǀĞŵďĞƌϰ͕ϮϬϭϰ'ĞŶĞƌĂůůĞĐƚŝŽŶWĂŐĞϮŽĨϱ DĂƌŐĂƌĞƚ,ĂŬĞ ůĞĂŶŽƌ;ůůŝĞͿƵŶŶ DĂƌŬ,ĂůďĂŬŬĞŶ DĂƌŝĞLJůůĂ Ăƌď,ĂŵƉĞů ^ƵƐĂŶŝŶƐƉĂŚƌ ŚĂƌůŽƚƚĞ;ŚĂƌͿůůĞĨƐŽŶĞďŽƌĂ,ĂŶƐŽŶ :ŽŚŶůůŝƐŽŶƐƚĂŶĐĞ,ĂƌŶĂĐŬ ĂǀŝĚŶƋƵŝƐƚdŚŽŵĂƐ,ĂƌŶĂĐŬ :ŽŚŶƉƉůĞLJ^ƚĞƉŚĞŶ,ĂƌŶĞƌ :ŽƐĞƉŚŝŶĞƉƉůĞLJ>ĞƐůŝĞ,ĂƌƌŝŶŐƚŽŶ :ŽĂŶŶĞƌŝĐŬƐĞŶ<ĞůůLJ,ĂƌƌŝƐ <ĂƌůƌŝĞEŝĐŽůĞ,ĂƌƌŝƐ ŶŶĂ&ĂŚƌŵĂŶtĂLJŶĞ,ĂƌƌŝƐ sŝƌŐŝů&ĂŝƌďĂŶŬƐ,ĂƌŽůĚ,ĂƚƚŽŶ 'ůĞŶŶ&ĂŝƚŚ:ƵĚŝƚŚ,ĂƵŐĞŶ ^ƵƐĂŶ,ĂƵƐŵĂŶ ŚƌŝƐƚŽƉŚĞƌ&ĂƌǀĞƌ 'ůĂĚLJƐ&ĞŝŶĚ^ŚĞƌŝ,ĂLJĚĞŶ >LJůĞ&ĞůƐĐŚĂƌďĂƌĂ,ĂLJĞƐ ǁŝŐŚƚ&ĞƌŐƵƐŽŶDĂƌǀŝŶ,ĂLJŶĞƐ 'ĞŽƌŐĞ&ŝƐŚ:ŽƐĞƉŚ,ĞŝŶƐ :ŽĂŶŶĞ&ŝƚĐŚDŝŬĞ,ĞŶĚƌŝĐŬƐŽŶ DĂƌŝĐůĂŝƌĞ;DĂƌŝͿ&ůĞŵŝŶŐ:ĂĐƋƵĞ,ĞƌŵĂŶ :ĂŵĞƐ&ƌĞĚƌŝĐŬƐĞŶ:ƵůŝĞ,ĞƌƌĞƌĂͲ>ĞŵůĞƌ DĂƌLJ&ƌĞĚƌŝĐŬƐĞŶŽůůĞĞŶ,ĞƐƐĞ DĂƌŬ&ƌĞĚƌŝĐŬƐŽŶ,ĂƌŽůĚ,ŝŶĞƐ ^ƵƐĂŶ&ƌĞĚƌŝĐŬƐŽŶ:ĂŶĞƚ,ŝƌĚ ƐƚĞůůĞ&ƌĞĞďƵƌŐĞƌZƵƐƐĞůů,ŝƌĚ ĂǀŝĚ&ƌĞĞĚŵĂŶĂƌƌLJ,ŽĞƉƉŶĞƌ ƌŶĞƐƚ&ƌĞƵĚĞŶďƵƌŐ'ŽƌĚŽŶ,ŽĨĨŵĂŶŶ :ĂŵĞƐ&ƌŝƚƐĐŚĞůŽƌĞƐ,ŽůůĂŶĚ :ŽŚŶ&ƌŝƚnjŬĞůŝnjĂďĞƚŚ;>ŝnjͿ,ŽůŵďĞƌŐ ŽŶĂůĚ'ĂďƌŝĞůƐŽŶ>ĂǁƌĞŶĐĞ,ŽůƚĞŐĂĂƌĚ DĂƌLJ:Ž'ĂůůŝŐĂŶŚƌŝƐƚŝĂŶ,ŽůƚĞƌ ĞďŽƌĂŚ'ĂŶƌƵĚĞ'ĂLJůĞ,ŽůƚĞƌ ŚƌŝƐ'ĂǁĂƌĞĐŬŝWĞƚĞƌ,ƵĨĨŵĂŶ DŝƌŝĂŵ'ĞŝƐĞ&ƌĞĚƌŝĐŬ;&ƌĞĚͿ,ƵŐŚĞƐ :ŽLJĐĞ'ŝďďƐdĞƌĞƐĂ,ƵŐŚĞƐ >Žƌŝ'ŝƚƚƵƐ/ŶŐĞďŽƌŐ,ƵŶĚĞƌ ĞŶƐŽŶ'ŝǁĂŝĂŶĞ,ƵƐĞ ^ƚĞƉŚĂŶŝĞ'ůĂƐĐŽĐŬ DĞůŝŶĚĂ,ƵƚĐŚŝƐŽŶ ĂůůĂƐ'ůĂƐĞƌ DŝĐŚĂĞů,ƵƚĐŚŝƐŽŶ WĂƚƚŝ'ůŽĨĨ ZŝĐŚĂƌĚ,ƵƚƚŽŶ DĂƌLJ'ŽƌĨŝŶĞ ŽƌŽƚŚLJ/ŚƌŬĞ ^ĂůůLJ'ŽƵŐŚ ůĂŝŶĞ/ŶŐĂůůƐ ZĂĐŚĞů'ƌĂLJ DĂƌŬ/ǀĞƌƐŽŶ :ĂŶŝĐĞ'ƌĞŐŽƌƐŽŶDĂƌǀŝŶ:ĂĐŬƐŽŶ >ĞƐƚĞƌ;>ĞƐͿ'ƌŝĞďĞŶŽǁŝůĞĞŶ:ĂĐŽďƐͲDĞůŝŶ 'ĞƌĂůĚ'ƌŝĨĨŝŶZŽƐĞŵĂƌLJ:ĞĐŚĞ >ĞŽŶĂƌĚ'ƌŝĨĨŝƚŚ^ŚĞƌƌLJ:ĞƐƚĞƌ tŝůůŝĂŵ'ƌŽƐůŝĞ:ĂĐŬŝĞ:ŽŚŶƐŽŶ dƌĂĐLJ'ƌŽǀĞ>ŽŝƐ:ŽŚŶƐŽŶ :ĞĨĨƌĞLJ'ƵƐƚĂĨƐŽŶDŝůƚŽŶ:ŽŚŶƐŽŶ ĞǀĞƌůLJ'ƵƐƚĂǀƐŽŶ^ƵĞ:ŽŚŶƐŽŶ 3DFNHW3J 'D >ŝƐƚŽĨ:ƵĚŐĞƐĨŽƌƚŚĞEŽǀĞŵďĞƌϰ͕ϮϬϭϰ'ĞŶĞƌĂůůĞĐƚŝŽŶWĂŐĞϯŽĨϱ WĂƚƌŝĐŝĂDĂŶŶ tŝůůŝĂŵ:ŽƌĚĂŶ:ƌ WĂŵĞůĂDĂƌƚŝŶ ŶŶĞ:ƵĚŝƐĐŚ EĂŶĐLJDĂƐƐĂƌŽ :ĂŵĞƐ:ƵĚŝƐĐŚ tŝůůŝĂŵ;ŝůůͿ<ĂůĞŶďŽƌŶƵĂŶĞDĂƚŚŝĂƐ ĂƚŚĞƌŝŶĞ<ĂƌƐĞůů,ĞůĞŶDĂƚŚŝĂƐ >LJůĞ<ĂƌƐƚĞŶƐŶŝƚĂDĂƚƚŝŶŐůLJ ĞďŽƌĂŚ;ĞďďŝĞͿ<ĞĞĨĞDŝĐŚĂĞůDĂƚƚŝŶŐůLJ ŚĞƌLJů<ĞůůLJDŝĐŚĂĞůDĐŽŶŽƵŐŚ ŚĂƌůĞƐ<ĞŶŶĞĚLJ:ƵůŝĞDĐDĂƐƚĞƌ ZŝĐŚĂƌĚ<ĞƌŶZŝĐŚĂƌĚDĐDĂƐƚĞƌ ZŝƚĂ<ŝĞĨĞƌEŽƌŵĂŶDĞĞŬƐ WŚLJůůŝƐ<ŝƌĐŚŶĞƌ<ĂƚŚůĞĞŶDĞLJĞƌůĞ ZĂŶĚŝ<ŝƌĐŚŶĞƌDĂƌŐĂƌĞƚDŝůĂŶĚ ƌĂŝŐ;ZŝĐŬͿDŝůůĞƌ >LJŶŶĞ<ŝƌŬůŝŶ ^ŚĂƌŽŶ<ŝƌƚnjĂƌůĞŶĞDŝůůĞƌ DĂƌŝůLJŶ<ŝƐĞƌWĂƵůDŝƚƚĞůƐƚĂĚƚ 'ĂƌLJ<ůĞŝŶtĞŶĚLJDůĞŶĂƌͲEŝĞƐĞŶ DĂƌŝĂŶ<ŶƵĚƐĞŶDŝůĚƌĞĚDŽĞ ,ĞůĞŶ<ŽůďůĞĂŶŽƌDŽŽƌĞ :ĞƌƌLJ<ŽƌƐƚĂĚDĂƌŝůLJŶDŽƌĞŵ :ĂŶŝĐĞ<ŽǁĂůĐnjLJŬ:ĂŵĞƐ;:ŝŵͿDŽƌƚŽŶ :ƵĚLJ<ƌĂĐŚƚdŚŽŵĂƐDŽƐƚ EĂŶĐLJ<ƌĂŚŶWĂƚƐLJDƵŶĚĂůĞ DLJƌŶĂ<ƌŽĞŶŝŶŐƌƵĐĞDƵƌƌĂLJ ƵŐƵƐƚ<ƌƵĞŐĞƌĂƌŽůĞDƵƌƌĂLJ ĂǀŝĚ<ƵĐŬ:ĞĂŶDƵƌƌĂLJ WĂƵů<ƵĞŚŶ^ƵĞEĂĞƐƐĞŶƐ ^ƵƐĂŶ<ƵŶĚŽĂůĞEŝĞĚĨĞůĚƚ ZĞŶĞ>ĂĨĨůĂŵ:ĂĐŬŝůƵEŝĞĚĨĞůĚƚ ZĂĐŚĞů>Ă&ŽƌŐĞ;WĂƚƌŝĐŝĂͿ:ĞĂŶEŝŐďƵƌ ĂƌŽů>ĂŵďĞƌŐ<ŽůůŽŚEŝŵůĞLJ ĂƌŝŶ>ĂŶŐǁŽƌƚŚLJ:ŽƐĞƉŚEŝdž DĞůǀLJŶ>ĂƌƐŽŶ&ƌĞĚEŽďƌĞŐĂ ZŝĐŚĂƌĚ>ĂƌƐŽŶ>ŝƐĂEŽŽŶĂŶ ^ŽŶŝĂ>ĂƌƐŽŶDĂƌŐĂƌĞƚEŽƌƚŚ ŽƵŐůĂƐ>ĞĞ^ƌĂŶĂEŽƌƚŚŽƵƐĞ ĞůĞƐƚĞ>ĞǁŝƐ^ŚĂƌŽŶEŽƌƚŚŽƵƐĞ ĞǀĞƌůLJ>ŝǀĞƐĂLJ ^ŚĞƌƌLJEŽƐĞƌ ĞƌŶĂƌĚ>ŽĞĨĨůĞƌ ŽďEŽǁŝĐŬŝ ^ŚĞƌƌLJů>ŽĞĨĨůĞƌ ůŵĞƌKĚůĂŶĚ ƌLJĂŶ>ŽŐĂŶ :ŽĂŶKĚůĂŶĚ ŶŶ>ŽƉŽƵƌ DĂƌůLJƐKŚŶƐƚĂĚ tĂůƚĞƌ>ŽƌďĞƌ ĞƚƚLJũĂŶĞKůƐŽŶ 'ĂƌLJ>ƵĞĐŬĂƌƌŝĞKůƐŽŶ <ĂƚŚůĞĞŶ>LJƚůĞŽŶĂůĚKůƐŽŶ ZŽďĞƌƚ>LJƚůĞ'ƌĞŐKƉĚĂŚů EŽƌƚŽŶDĂĂƐƐ,ĂƌŽůĚKƐďŽƌŶ DĂƌŝůLJŶDĂĐŬ:ŽŚŶKƐƚďLJ EĂŶĐLJDĂĐ<ĞŶnjŝĞDĂƌůLJƐKƐƚďLJ <ĂƚŚůĞĞŶ;<ĂƚŚLJͿDĂĞŐĞƌůĞŝŶĂƌďĂƌĂKƚƚŵĂŶ ZŽďĞƌƚ;ŽďͿDĂĞŐĞƌůĞŝŶĂƌƌĞůůKƚƚŵĂŶ 3DFNHW3J 'D >ŝƐƚŽĨ:ƵĚŐĞƐĨŽƌƚŚĞEŽǀĞŵďĞƌϰ͕ϮϬϭϰ'ĞŶĞƌĂůůĞĐƚŝŽŶWĂŐĞϰŽĨϱ ůŝnjĂďĞƚŚ^ĐŚŝŶŝŐŽŝ DĂƌLJKǀŝĂƚƚ ůĂŝŶĞ^ĐŚŵŝĚƚ ŽŶĂůĚ;ŽŶͿWĂŶŬŽǁƐŬŝ YƵĞŶƚŝŶ^ĐŚŵŝĞƌĞƌ <ĂƌĞŶWĂƐĐŚ <ĂƌůWĂƐĐŚDĂƌLJ^ĐŚŵŝƚƚ 'ĞŶĞWĞĂƌƐŽŶ^ƚĞǀĞŶ^ĐŚŵŝƚƚ WĂƚƌŝĐŝĂWĞĂƌƐŽŶtŝůůŝĂŵ^ĐŚŶĞŝĚĞƌ tĂĚƐǁŽƌƚŚWĞŶƚŝĐŽWĂƚƌŝĐŝĂ^ĐŚŽĞŶĨĞůĚĞƌ >ŽǁĞůůWĞŶnjŽŶŶĂ^ĐŚŽƚƚ ^ŚĂƌŽŶWĞŶnjƌŽŶĂ^ĐŚƵĐŬ ĂƌŽůWĞƚĞƌƐŽŶĚǁĂƌĚ^ĐŚƵĐŬ ĂǀŝĚWĞƚĞƌƐŽŶ<ĞŶŶĞƚŚ^ĐŚƵůƚnj :ƵĚLJWůĂŶŬDĂƌLJ^ĐŚǁĂůďĞ ƌŝŬĂWŽůĂŶƐŬLJŵLJ^ĐŚǁĂƌƚnj ZŽƐĞ;ZŽƐŝĞͿ^ĞĞŐŵŝůůĞƌ ZŽŐĞƌWŽůĂŶƐŬLJ ŽŶŶŝĞWŽůŬ<ĂLJ^Ğŝƚnj ZŽďĞƌƚ;ŽďͿWŽŵĞƌĞŶŬĞůĂƌĞŶ^ĞůůŶĞƌ /ƌŵĂ;<ŝƚƚLJͿWŽƚƌĂƚnjDĞĐŚĞůůĞ^ĞǀĞƌƐŽŶ :ƵůŝĞWŽƚƚĞƌdĞƌƌLJ^ĞǀĞƌƐŽŶ >ĂƵƌĂWŽƚƚĞƌ:ŽŶŶ^ŚĞůĚŽŶ <ĂƚŚƌLJŶWƌĞĚŵŽƌĞůŝnjĂďĞƚŚ;ĞƚƚLJͿ^ŚŝŵĞŬ ŽĞŝWƌŝƚĐŚĂƌĚŝŶĚLJ^ŚŽŶĞƐ ŶĚƌĞǁWƌƵĞƚƚDƵŚƵďŽ^ŝĂĚ >ŽŝƐYƵŝŶŶĞŶŶŝƐ^ŝĞŵƐĞŶ ^ĂŶĚƌĂZĂŵĂŐĞͲWĞĞůůĂŝŶĞ^ŝĞŵƐĞŶ <ĞŶZĂŶĚĂůůsĞƌŶĂĚĞƚƚĞ;sĞƌŶĂͿ^ŝŵŽŶ ZĂLJŵŽŶĚZĂƉƉDĂƌŐĂƌĞƚ^ŝŵŽŶƐŽŶ <ĞŶŶĞƚŚZĞĚŝŶŐDĂƚƚŚĞǁ^ŬŝŶŶĞƌ ZŽƐŝĞ;ZŽƐĂŵŽŶĚͿZĞĚŝŶŐDĂƌŝĂŶŶĞ^ŬŽůŶŝĐŬ ŝĂŶĞZĞŝƐŝŶŐEĂŶĐLJ^ůŽĐƵŵď ŶŶĞZĞŶƚnjĂƌŽů^ŵŝĚƚ ,ĞůĞŶZŝĐŚĂƌĚƐŽŶZĂůƉŚ^ŵŝƚŚ DĂƌLJZŝĐŚĂƌĚƐŽŶ:ƵĚŝƚŚĂ;:ƵĚŝͿ^ŶLJĚĞƌ DĂƌŝůLJŶZŝůĞLJĂƌďĂƌĂ^ŽůďƌŝŐ :ŽĂŶZŽďĞƌƚƐ:ĂŵĞƐ^Ɖŝƚnj ^ŚĂƌŽŶZŽďŝŶƐŽŶ:ĂŶĞƚ^ƚĂůŽĐŚ ƌĞŶĚĂZŽƐƐŵĂŶ^ŚĂŝŶĂ^ƚĞŝŶ <ƌŝƐƚŝŶĞZŽƐƐŵĂŶDĂƌƚŚĂ^ƚĞƌŶĞƌ :ĞƐƐŝĐĂZƵĞďĞƌ ,ĂƌŽůĚ^ƚĞǁĂƌƚ :ŽŚŶZƵĞŐŐ ŚĂĚ^ƚŽǁĞƌƐ ŽƌŝƐZƵĞƐŝŶŬ ZŽďĞƌƚ^ƚƌĂĐŬ :ĂŶŝĐĞZƵƚŚ <ĂƚŚLJ^ƵĨĨƌŝŶƐ WĞŶĞůŽƉĞ;WĞŶŶLJͿZLJŶŽ &ƌĞĚĞƌŝĐŬ^ƵŚůĞƌ͕:ƌ͘ DŝŬĞ^ĂĚĂƵƐŬŝƐ DĂdž^ƵůůŝǀĂŶ ZŽĚŶĞLJ^ĂŶĚďĞƌŐZĂŶĚLJ^ƵƚƚĞƌ ^ŚĂƌŽŶ^ĂŶĚďĞƌŐ<ĞŶŶĞƚŚ^LJƌŝŶŐ DĂƌLJ^ĂƌƌŽƐ'ůĞŶŶdĂďŽƌ ŽƌŽƚŚLJ^ĂƚƌĞ^ĂƌĂŚdŚŝŵŝũĂŶ ŽŶŶŝĞ^ĐŚĂĞĨĞƌ:ƵĚŝƚŚdŚƌŽŶƐŽŶ ,ĞůĞŶ^ĐŚĞŝĚŝĂŶĞdůŽƵŐĂŶ :ŽŚŶ^ĐŚĞŝĚ:ĂŵĞƐdůŽƵŐĂŶ DĂƌŬ^ĐŚŝŵĞůƉĨĞŶŝŐ:ĂŶĞdůŽƵŐĂŶ 3DFNHW3J 'D >ŝƐƚŽĨ:ƵĚŐĞƐĨŽƌƚŚĞEŽǀĞŵďĞƌϰ͕ϮϬϭϰ'ĞŶĞƌĂůůĞĐƚŝŽŶWĂŐĞϱŽĨϱ ĂǀĞ;ĨƵůůŶĂŵĞŝƐŚĂƌůĞƐĂǀŝĚͿdƌƵdžĂů DŽŶŝĐĂsĂŶ<ŝƌŬ WĂƵůŝŶĞsĂƌůĞLJ ^LJůǀŝĂsŝŬĞŶ <ĂƚŚĞƌŝŶĞ;<ĂƚŚLJͿtĂůŬĞƌ ZŝĐŬtĂůƐƚŽŶ ^ĂŶĚƌĂtĞŝĚĞŶ WŚŝůŝƉtĞŝůĞƌ :ŽƐĞƉŚtĞŝƐ <ĂLJtĞůůŶĞƌ ĂǀŝĚtĞůƐŚ sŝƌŐŝŶŝĂtĞŶƚnjĞů ĂǀŝĚtĞƌŶĞĐŬĞ 'ĂƌLJtĞƐƚ WŚŝůtŚĞĞůĞƌ ^ƵĞtŚĞĞůĞƌ WĂƵůtŚŝĚĚĞŶ ZĂŶĂĞtŝŐŐŝŶƐ :ĂŵĞƐtŝůůŝĂŵƐ :ĂŶĞƚtŝůůŝĂŵƐ :ĂŵĞƐtŝůůƐ 'ƌĞŐŽƌLJ;'ƌĞŐͿtŝŵŵĞƌ tĂƌƌĞŶtŽŶŐ :ŽĂŶtŽŽŶĞƌ <ĂƌĞŶtƌĂƐĞ ZŽŐĞƌtƌĂƐĞ WŚLJůůŝƐtƌŝŐŚƚ :ŝůůtLJůĂŵ :ƵĚŝƚŚzĂŐŐLJ :͘zĂƚĞƐ ƌŝƚƚĂzŽƵŵĂŶƐ :ĂLJzŽƵŵĂŶƐ tĞŶĚLJĂďŽƌŽǁƐŬŝ ůĂƌĞŶĐĞĂďŽƌŽǁƐŬŝ͕:ƌ͘ 'ĂƌLJĂŶĚĞƌ WĂƚƌŝĐŝĂŝƌďĞƐ WĂŵĞůĂŽůůŝŶŐĞƌ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³3ODQ´ DQG :+(5($6WKH(PSOR\HUZRXOGOLNHWRDPHQGWKH3ODQIRUDGPLQLVWUDWLYHSXUSRVHVDQGWRFODULI\WKH 3ODQ¶VEHQHILWV 7+(5()25(%(,75(62/9('WKDWSXUVXDQWWR6HFWLRQRIWKH3ODQWKH3ODQLVKHUHE\ DPHQGHGDVGHVFULEHGEHORZ [[225,1036,429,1088][11][B,I,][Arial]](IIHFWLYH [[438,1036,798,1088][11][B,I,][Arial]]-DQXDU\ [[797,1036,997,1088][11][,,][Arial]]6HFWLRQ [[1005,1036,1030,1088][11][,,][Arial]],, [[1031,1036,1056,1088][11][,,][Arial]] [[1065,1036,1614,1088][11][,,][Arial]](OLJLELOLW\DQG3DUWLFLSDWLRQ [[1615,1036,1814,1088][11][,,][Arial]]6HFWLRQ [[1823,1036,1964,1088][11][,,][Arial]] E [[1965,1036,1978,1088][11][,,][Arial]] [[1986,1036,2327,1088][11][,,][FEF14E2B289]]LVGHOHWHGLQLW¶V HQWLUHO\DQGUHSODFHGZLWKWKHIROORZLQJ &RYHUDJH6WDUW'DWH $Q(PSOR\HHLVDQ(OLJLEOH(PSOR\HHRQWKHILUVWGD\RIWKHFDOHQGDUPRQWKIROORZLQJRU FRLQFLGLQJZLWKWKH(PSOR\HH¶VILUVWGD\RIHPSOR\PHQWRUFKDQJHWRHOLJLEOHVWDWXVZLWKWKH (PSOR\HU [[225,1510,873,1562][11][B,I,][Arial]](IIHFWLYH6HSWHPEHU [[879,1510,2337,1562][11][,,][Arial]]WKH3ODQLVDPHQGHGWREHWKH3ODQ'RFXPHQWDQG6XPPDU\%HQHILW 'HVFULSWLRQIRUWKH&LW\RI5RFKHVWHU(PSOR\HH'HQWDO%HQHILW3ODQ ,1:,71(66:+(5(2)WKHBBBBBBBBBBBBBBBBBBBBBBBBBBBBRI&LW\RI5RFKHVWHUKDVH[HFXWHGWKH IRUHJRLQJ3ODQDPHQGPHQWRQEHKDOIRIWKH(PSOR\HU &LW\RI5RFKHVWHU %< BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB [[1125,2348,1322,2401][11][,I,][Arial]]6LJQDWXUH [[1321,2348,1334,2401][11][,I,][Arial]] BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB [[1125,2506,1523,2559][11][,I,][Arial]]7\SHRU3ULQW1DPH [[1523,2506,1536,2559][11][,I,][Arial]] BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB [[1125,2664,1211,2717][11][,I,][Arial]]7LWOH [[1212,2664,1225,2717][11][,I,][Arial]] [[1275,2664,1288,2717][11][,I,][Arial]] [[1125,2717,1138,2770][11][,I,][Arial]] BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB [[1125,2822,1222,2875][11][,I,][Arial]]'DWH [[1222,2822,1235,2875][11][,I,][Arial]] 3DFNHW3J ' 'FLWO\RI REWDLQLQJHPSOR\PHQWRU VXEPLVVLRQWRRUUHMHFWLRQRIWKDWFRQGXFWRUFRPPXQLFDWLRQE\DQLQGLYLGXDOLVXVHGDVDIDFWRULQGHFL VLRQVDIIHFWLQJWKHLQGLYLGXDO RU VXFKFRQGXFWRUFRPPXQLFDWLRQKDVWKHSXUSRVHRUHIIHFWRIVXEVWDQWLDOO\LQWHUIHULQJZLWKDQLQGLYLGXDO V HPSOR\PHQWRUFUHDWHVDQLQWLPLGDWLQJKRVWLOHRURIIHQVLYHHPSOR\PHQWHQYLURQPHQW 6H[XDOKDUDVVPHQWPD\LQFOXGHEXWLVQRWOLPLWHGWRWKHIROORZLQJ x 8QZHOFRPHRUXQZDQWHGVH[XDODGYDQFHVSK\VLFDOFRQWDFWWKLVLQFOXGHVVWDONLQJSDWWLQJSLQFKLQJ EUXVKLQJXSDJDLQVWKXJJLQJFRUQHULQJNLVVLQJIRQGOLQJRUDQ\RWKHUVLPLODUSK\VLFDOFRQWDFWFRQVLGHUHG XQDFFHSWDEOHE\DQRWKHULQGLYLGXDO x 9HUEDORUZULWWHQVWDWHPHQWVMRNHVRUFRPPHQWVWKDWDUHVH[XDOO\RULHQWHGDQGFRQVLGHUHGXQDFFHSWDEOH E\DQRWKHULQGLYLGXDO±WKLVLQFOXGHVFRPPHQWVDERXWDQLQGLYLGXDO¶VERG\RUDSSHDUDQFHZKHUHVXFK FRPPHQWVJREH\RQGPHUHFRXUWHV\SRVWLQJVH[XDOO\H[SOLFLWSRVWHUVPDWHULDOVRUUHSHDWHGDQGXQZHO FRPHUHTXHVWIRUGDWHV x 5HTXHVWVRUGHPDQGVIRUVH[XDOIDYRUVWKLVLQFOXGHVVXEWOHRUREYLRXVH[SHFWDWLRQVSUHVVXUHVRUUH TXHVWVIRUDQ\W\SHRIVH[XDOIDYRUDORQJZLWKDQLPSOLHGRUVSHFLILFSURPLVHRIIDYRUDEOHWUHDWPHQW RU QHJDWLYHFRQVHTXHQFH FRQFHUQLQJRQH¶VFXUUHQWRUIXWXUHMRE 3DFNHW3J 'WKHLQWHQWRIWKHDFFXVHG LINQRZQ x HIIHFWRIWKHFRQGXFWRQWKHYLFWLP x WKHFRQGXFWDVYLHZHGXVLQJD³UHDVRQDEOHSHUVRQ´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¶VH[LVWLQJPHGLFDOSODQLWDOVRSUHVHQWHGDQ RSSRUWXQLW\WRPRGHUQL]HWKHH[LVWLQJSODQDQGHYDOXDWHWKHORQJWHUPILQDQFLDOVXVWDLQDELOLW\RIWKHSODQ$VVXFKWKH&LW\ SDUWQHUHGZLWK*DOODJKHU%HQHILW6HUYLFHVDQGIRUPHGDQ(PSOR\HH%HQHILWV$GYLVRU\7HDPZKLFKFRQVLVWHGRIHPSOR\HH UHSUHVHQWDWLYHVWKURXJKRXWWKH&LW\7KHREMHFWLYHVRIWKLVWHDPZHUHWRGHYHORSDWRWDOUHZDUGVSKLORVRSK\VWDWHPHQW HYDOXDWHWKHH[LVWLQJPHGLFDOSODQLQOLJKWRIKHDOWKFDUHUHIRUPUHTXLUHPHQWVDQGHPSOR\HHQHHGVDQGSURYLGHLQSXWRQ IXWXUHPHGLFDOSODQGHVLJQV 7KHFXOPLQDWLRQRIWKLVSURMHFWUHVXOWHGLQWKHUHFRPPHQGDWLRQRIWKHWZRDWWDFKHGPHGLFDOSODQVIRU&RXQFLOFRQVLGHUDWLRQ 7KHH[LVWLQJPHGLFDOSODQKDVEHHQXSGDWHGPHHWVQHFHVVDU\OHJDOUHTXLUHPHQWVDQGLVQRZUHIHUUHGWRDVWKH³%DVH 3ODQ´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³%DVH´3ODQ (IIHFWLYH-DQXDU\ 3DFNHW3J 'D 7$%/(2)&217(176 6(&7,21,,1752'8&7,21 6(&7,21,,&2%5$127,&(2)5,*+76 $77$&+0(17$+,3$$35,9$&<$1'6(&85,7< &LW\RI5RFKHVWHU±³%DVH´3ODQ 3ODQ'RFXPHQWDQG6XPPDU\%HQHILW'HVFULSWLRQ 3DFNHW3J 'D 6(&7,21, ,1752'8&7,21 (VWDEOLVKPHQWRIWKH3ODQ$GRSWLRQRIWKH3ODQ'RFXPHQWDQG6XPPDU\%HQHILW'HVFULSWLRQ 7+,63/$1'2&80(17$1'6800$5<%(1(),7'(6&5,37,21PDGHE\&LW\RI5RFKHVWHU WKH DPHQGVDQGUHVWDWHV ³(PSOR\HU´ DVRI-DQXDU\KHUHE\WKH&LW\RI5RFKHVWHU(PSOR\HH 0HGLFDO%HQHILW3ODQ WKH³3ODQ´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imes New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 3/$1,1)250$7,21 (PSOR\HUKDVHVWDEOLVKHGWKH&LW\RI5RFKHVWHU(PSOR\HH0HGLFDO%HQHILW³%DVH´3ODQ KHUHLQDIWHU ³3ODQ´ LQRUGHUWRSURYLGHFRPSUHKHQVLYHKHDOWKFDUHEHQHILWVIRU(OLJLEOH(PSOR\HHVDQGWKHLU 'HSHQGHQWV 7KH3ODQLVDVHOILQVXUHGSXEOLFVHFWRUSODQZLWKLQWKHPHDQLQJRI016WDWXWHELJXLWLHVLQFRQVLVWHQFLHVDQGRURPLVVLRQVLQWKH 3ODQDQGUHODWHGGRFXPHQWVWRPDNHGHWHUPLQDWLRQVLQUHJDUGVWRLVVXHVUHODWLQJWRHOLJLELOLW\IRU EHQHILWVWRGHFLGHGLVSXWHVWKDWPD\DULVHUHODWLYHWRD3ODQ3DUWLFLSDQWV¶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¶V UHVSRQVLELOLW\6HHWKH[[775,2710,1256,2763][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[1253,2710,1266,2762][11][,,][Arial]] [[1266,2710,1743,2762][11][,,][Arial]]VHFWLRQIRUDOLVWRIVHUYL [[1745,2710,2183,2762][11][,,][Arial]]FHVWKDWUHTXLUH3ULRU $XWKRUL]DWLRQDQGGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ 7KLV3ODQLV³VHOILQVXUHG´ZKLFKPHDQVEHQHILWVDUHSDLGIURPWKH(PSOR\HUV¶JHQHUDODVVHWV7KH (PSOR\HUDQGWKH3ODQ$GPLQLVWUDWRUKDYHFRQWUDFWHGZLWKWKH&ODLPV$GPLQLVWUDWRUWRSHUIRUPFHUWDLQ 3DFNHW3J 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] FRQVXOWDWLYHDQGPDQDJHPHQWVHUYLFHVUHODWHGWRWKLV3ODQ7KH&LW\$GPLQLVWUDWRULVWKH3ODQ $GPLQLVWUDWRUDQGQDPHGILGXFLDU\RIWKLV3ODQDQGWKHUHE\UHWDLQVXOWLPDWHDXWKRULW\IRUWKLV3ODQ 0D\R&OLQLF+HDOWK6ROXWLRQVLVWKH&ODLPV$GPLQLVWUDWRUDQGZLOOSURFHVVFODLPVPDQDJHWKH0D\R &OLQLF+HDOWK6ROXWLRQVQHWZRUNRI+HDOWKFDUH3URYLGHUVDQGDQVZHUPHGLFDOEHQHILWDQGFODLP TXHVWLRQV0D\R&OLQLF+HDOWK6ROXWLRQVZLOOEHUHIHUUHGWRDVWKH&ODLPV$GPLQLVWUDWRUWKURXJKRXWWKLV 6%' 7KH&ODLPV$GPLQLVWUDWRU¶VFXVWRPHUVHUYLFHUHSUHVHQWDWLYHVDUHDYDLODEOHWRDQVZHUDQ\TXHVWLRQVRU FRQFHUQVUHJDUGLQJWKLV3ODQ3KRQHOLQHVDUHRSHQIURP 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] )RUHQUROOPHQWRUHOLJLELOLW\TXHVWLRQVSOHDVHFRQWDFW&LW\RI5RFKHVWHU 48(67,216 &XVWRPHU6HUYLFH WROOIUHH 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 3/$1$'0,1,675$7,9(,1)250$7,21 3ODQ1DPH&LW\RI5RFKHVWHU(PSOR\HH0HGLFDO%HQHILW³%DVH´3ODQ (PSOR\HU $JHQWIRU6HUYLFHRI&LW\RI5RFKHVWHU WK /HJDO3URFHVV6WUHHW6(5RRP 5RFKHVWHU01 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 6(&7,21,, &2%5$127,&(2)5,*+76 ,QLWLDO1RWLFHRI&2%5$&RQWLQXDWLRQ&RYHUDJH5LJKWV ,QWURGXFWLRQ 3ODQEHFDXVHHLWKHURQHRIWKHIROORZLQJTXDOLI\LQJ HYHQWVKDSSHQV <RXDUHUHFHLYLQJWKLVQRWLFHEHFDXVH\RXKDYH x UHFHQWO\EHFRPHFRYHUHGXQGHUWKH&LW\RI <RXUKRXUVRIHPSOR\PHQWDUHUHGXFHGRU 5RFKHVWHU¶VJURXSKHDOWKSODQ WKH3ODQ 7KLV x <RXUHPSOR\PHQWHQGVIRUDQ\UHDVRQRWKHU QRWLFHFRQWDLQVLPSRUWDQWLQIRUPDWLRQDERXW\RXU WKDQ\RXUJURVVPLVFRQGXFW ULJKWWR&2%5$FRQWLQXDWLRQFRYHUDJHZKLFKLVD WHPSRUDU\H[WHQVLRQRIFRYHUDJHXQGHUWKH3ODQ ,I\RXDUHWKHVSRXVHRIDQHPSOR\HH\RXZLOO 7KLVQRWLFHJHQHUDOO\H[SODLQV&2%5$ EHFRPHDTXDOLILHGEHQHILFLDU\LI\RXORVH\RXU FRQWLQXDWLRQFRYHUDJHZKHQLWPD\EHFRPH FRYHUDJHXQGHUWKH3ODQEHFDXVHDQ\RIWKH DYDLODEOHWR\RXDQG\RXUIDPLO\DQGZKDW\RX IROORZLQJTXDOLI\LQJHYHQWVKDSSHQV QHHGWRGRWRSURWHFWWKHULJKWWRUHFHLYHLW x <RXUVSRXVHGLHV 7KHULJKWWR&2%5$FRQWLQXDWLRQFRYHUDJHZDV x <RXUVSRXVH¶VKRXUVRIHPSOR\PHQWDUH FUHDWHGE\DIHGHUDOODZWKH&RQVROLGDWHG UHGXFHG 2PQLEXV%XGJHW5HFRQFLOLDWLRQ$FWRI x <RXUVSRXVH¶VHPSOR\PHQWHQGVIRUDQ\ &2%5$ &2%5$FRQWLQXDWLRQFRYHUDJHFDQ UHDVRQRWKHUWKDQKLVRUKHUJURVV EHFRPHDYDLODEOHWR\RXZKHQ\RXZRXOGRWKHUZLVH PLVFRQGXFW ORVH\RXUJURXSKHDOWKFRYHUDJH,WFDQDOVR x <RXUVSRXVHEHFRPHVHQWLWOHGWR0HGLFDUH EHFRPHDYDLODEOHWRRWKHUPHPEHUVRI\RXUIDPLO\ EHQHILWV XQGHU3DUW$3DUW%RUERWK RU ZKRDUHFRYHUHGXQGHUWKH3ODQZKHQWKH\ZRXOG x <RXEHFRPHGLYRUFHGRUOHJDOO\VHSDUDWHG RWKHUZLVHORVHWKHLUJURXSKHDOWKFRYHUDJH)RU IURP\RXUVSRXVH DGGLWLRQDOLQIRUPDWLRQDERXW\RXUULJKWVDQG REOLJDWLRQVXQGHUWKH3ODQDQGXQGHUIHGHUDOODZ <RXUGHSHQGHQWFKLOGUHQZLOOEHFRPHTXDOLILHG \RXVKRXOGUHYLHZWKH3ODQ¶V6XPPDU\3ODQ EHQHILFLDULHVLIWKH\ORVHFRYHUDJHXQGHUWKH 'HVFULSWLRQRUFRQWDFWWKH3ODQ$GPLQLVWUDWRU 3ODQEHFDXVHDQ\RIWKHIROORZLQJTXDOLI\LQJ HYHQWVKDSSHQV :KDWLV&2%5$&RQWLQXDWLRQ&RYHUDJH" x 7KHSDUHQWHPSOR\HHGLHV &2%5$FRQWLQXDWLRQFRYHUDJHLVDFRQWLQXDWLRQRI x 7KHSDUHQWHPSOR\HH¶VKRXUVRIHPSOR\PHQW 3ODQFRYHUDJHZKHQFRYHUDJHZRXOGRWKHUZLVHHQG DUHUHGXFHG EHFDXVHRIDOLIHHYHQWNQRZQDVD³TXDOLI\LQJ x 7KHSDUHQWHPSOR\HH¶VHPSOR\PHQWHQGVIRU HYHQW´6SHFLILFTXDOLI\LQJHYHQWVDUHOLVWHGODWHULQ DQ\UHDVRQRWKHUWKDQKLVRUKHUJURVV WKLVQRWLFH$IWHUDTXDOLI\LQJHYHQW&2%5$ PLVFRQGXFW FRQWLQXDWLRQFRYHUDJHPXVWEHRIIHUHGWRHDFK x 7KHSDUHQWHPSOR\HHEHFRPHVHQWLWOHGWR SHUVRQZKRLVD³TXDOLILHGEHQHILFLDU\´<RX\RXU 0HGLFDUHEHQHILWV 3DUW$3DUW%RUERWK VSRXVHDQG\RXUGHSHQGHQWFKLOGUHQFRXOG x 7KHSDUHQWVEHFRPHGLYRUFHGRUOHJDOO\ EHFRPHTXDOLILHGEHQHILFLDULHVLIFRYHUDJHXQGHU VHSDUDWHGRU WKH3ODQLVORVWEHFDXVHRIWKHTXDOLI\LQJHYHQW x 7KHFKLOGVWRSVEHLQJHOLJLEOHIRUFRYHUDJH 8QGHUWKH3ODQTXDOLILHGEHQHILFLDULHVZKRHOHFW XQGHUWKHSODQDVD³GHSHQGHQWFKLOG´ &2%5$FRQWLQXDWLRQFRYHUDJHPXVWSD\IRU &2%5$FRQWLQXDWLRQFRYHUDJH 6RPHWLPHVILOLQJDSURFHHGLQJLQEDQNUXSWF\XQGHU WLWOHRIWKH8QLWHG6WDWHV&RGHFDQEHD ,I\RXDUHDQHPSOR\HH\RXZLOOEHFRPHDTXDOLILHG TXDOLI\LQJHYHQW,IDSURFHHGLQJLQEDQNUXSWF\LV EHQHILFLDU\LI\RXORVH\RXUFRYHUDJHXQGHUWKH ILOHGZLWKUHVSHFWWRWKH&LW\RI5RFKHVWHUDQGWKDW 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] EDQNUXSWF\UHVXOWVLQWKHORVVRIFRYHUDJHRIDQ\GHHPHGWLPHO\LIWKH3ODQLVDEOHWRGHWHUPLQHWKH UHWLUHGHPSOR\HHFRYHUHGXQGHUWKH3ODQWKHSODQWRZKLFKLWDSSOLHVWKHLGHQWLW\RIWKHHPSOR\HH UHWLUHGHPSOR\HHZLOOEHFRPHDTXDOLILHGEHQHILFLDU\DQGWKHTXDOLILHGEHQHILFLDULHVWKHTXDOLI\LQJHYHQW ZLWKUHVSHFWWRWKHEDQNUXSWF\7KHUHWLUHGDQGWKHGDWHRQZKLFKWKHTXDOLI\LQJHYHQW HPSOR\HH¶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¶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¶VKRXUVRIHPSOR\PHQW SHULRGQRH[WHQVLRQRIWKHFRQWLQXDWLRQZLOOEH&2%5$FRQWLQXDWLRQFRYHUDJHJHQHUDOO\ODVWVIRU SURYLGHG,IWKHQRWLILFDWLRQLVLQFRPSOHWHLWZLOOEHRQO\XSWRDWRWDORIPRQWKV7KHUHDUHWZR 3DFNHW3J 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] ZD\VLQZKLFKWKLVPRQWKSHULRGRI&2%5$VXFKGHWHUPLQDWLRQRU WKHGDWHRQZKLFKWKH FRQWLQXDWLRQFRYHUDJHFDQEHH[WHQGHGTXDOLILHGEHQHILFLDU\ZDVLQIRUPHGRIWKH [[150,362,163,414][11][B,I,][Arial]] [[1350,362,1786,414][11][,,][Arial]]UHVSRQVLELOLW\WRSURYL [[1787,362,2412,414][11][,,][Arial]]GHQRWLFHDQGWKHSURFHGXUHV [[150,414,783,466][11][B,I,][Arial]]'LVDELOLW\H[WHQVLRQRI [[782,414,797,466][11][B,I,][Arial]] [[797,414,1212,466][11][B,I,][Arial]]PRQWKSHULRGRI [[1350,414,2412,466][11][,,][Arial]]IRUGRLQ JVR7KHQRWLILFDWLRQPXVWEHSURYLGHGLQ [[150,467,437,519][11][B,I,][Arial]]FRQWLQXDWLRQ [[438,467,640,519][11][B,I,][Arial]]FRYHUDJH [[639,467,652,519][11][B,I,][Arial]] [[1349,467,2412,519][11][,,][Arial]]ZULWLQJDQGEHPDLOHGWRWKH3 ODQDWWKHDGGUHVV LGHQWLILHGEHORZ ,I\RXRUDQ\RQHLQ\RXUIDPLO\FRYHUHGXQGHUWKH 3ODQLVGHWHUPLQHGE\WKH6RFLDO6HFXULW\[[1350,625,1363,677][11][B,I,][Arial]] $GPLQLVWUDWLRQWREHGLVDEOHGDQG\RXQRWLI\WKH[[1350,678,2245,730][11][B,I,][Arial]]6HFRQGTXDOLI\LQJHYHQWH[WHQVLRQRI [[2246,678,2261,730][11][B,I,][Arial]] [[2261,678,2413,730][11][B,I,][A rial]]PRQWK 3ODQ$GPLQLVWUDWRULQDWLPHO\IDVKLRQ\RXDQG\RXU[[1350,730,2048,782][11][B,I,][Arial]]SHULRGRIFRQWLQXDWLRQFRYHUDJH [[2048,730,2061,782][11][B,I,][Arial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¶V(PSOR\HH%HQHILWV6HFXULW\ DQGWKHTXDOLILHGEHQHILFLDULHVWKHTXDOLI\LQJHYHQW$GPLQLVWUDWLRQ (%6$ LQ\RXUDUHDRUYLVLWWKH DQGWKHGDWHRQZKLFKWKHTXDOLI\LQJHYHQW(%6$ZHEVLWHDWZZZGROJRYHEVD $GGUHVVHV RFFXUUHGSURYLGHGWKDWWKHPLVVLQJLQIRUPDWLRQLVDQGSKRQHQXPEHUVRI5HJLRQDODQG'LVWULFW(%6$ SURYLGHGZLWKLQWKLUW\ GD\V,IWKHPLVVLQJ2IILFHVDUHDYDLODEOHWKURXJK(%6$¶VZHEVLWH LQIRUPDWLRQLVQRWSURYLGHGZLWKLQWKDWWLPHWKH .HHS<RXU3ODQ,QIRUPHGRI$GGUHVV&KDQJHV QRWLILFDWLRQZLOOEHLQHIIHFWLYHDQGQRH[WHQVLRQRI WKHFRQWLQXDWLRQSHULRGZLOOEHSURYLGHG ,QRUGHUWRSURWHFW\RXUIDPLO\¶VULJKWV\RXVKRXOG ,IVXFKSHUVRQKDVEHHQGHWHUPLQHGXQGHUWKHNHHSWKH3ODQ$GPLQLVWUDWRULQIRUPHGRIDQ\ 6RFLDO6HFXULW\$FWWRQRORQJHUEHGLVDEOHGWKHFKDQJHVLQWKHDGGUHVVHVRIIDPLO\PHPEHUV<RX SHUVRQPXVWQRWLI\WKH3ODQRIWKDWGHWHUPLQDWLRQVKRXOGDOVRNHHSDFRS\IRU\RXUUHFRUGVRIDQ\ ZLWKLQWKLUW\ GD\VRIWKHODWHURI WKHGDWHRIQRWLFHV\RXVHQGWRWKH3ODQ$GPLQLVWUDWRU 3DFNHW3J 'D [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 3ODQ&RQWDFW,QIRUPDWLRQ 7KHHPSOR\HUDGPLQLVWHUVLWVRZQ&2%5$ UHVSRQVLELOLWLHV$OOTXHVWLRQVQRWLFHVDQGRWKHU FRPPXQLFDWLRQVUHJDUGLQJ&2%5$DQGWKH3ODQ VKRXOGEHGLUHFWHGWR &LW\RI5RFKHVWHU +XPDQ5HVRXUFHV'HSDUWPHQW %HQHILWVDQG6DIHW\$GPLQLVWUDWRU WK 6WUHHW6(5RRP 5RFKHVWHU01 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21,,, :20(1¶6+($/7+$1'&$1&(55,*+76$&7 :20(1¶6+($/7+$1'&$1&(55,*+76$&7 0HGLFDODQGVXUJLFDOEHQHILWVWRZRPHQZKRKDYHXQGHUJRQHDPDVWHFWRP\ DVXUJLFDOSURFHGXUHWR UHPRYHWKHEUHDVWRUEUHDVWWLVVXH ZHUHH[SDQGHGXQGHUWKHIHGHUDO:RPHQ¶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rial]]6FKHGXOHRI%HQHILWV [[2216,1096,2229,1148][11][,,][Arial]] [[2229,1096,2242,1148][1 1][,,][Arial]] 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21,9 '(),1,7,216 7KLVVHFWLRQGHILQHVWKHWHUPVXVHGLQWKLV3ODQ7KHVHWHUPVZLOOEHFDSLWDOL]HGWKURXJKRXWWKLV3ODQ ZKHQUHIHUUHGWRLQWKHFRQWH[WGHILQHG7KHUHPD\EHRWKHUWHUPVGHILQHGLQVSHFLILFVHFWLRQVRIWKLV 3ODQ $OORZHG&KDUJH 7KHPD[LPXPGROODUDPRXQWHOLJLEOHIRUSD\PHQWIRUDSURFHGXUHRU VHUYLFHDVGHWHUPLQHGE\WKLV3ODQ7KLV,QFOXGHVELOOHGFKDUJHVFRQWUDFWHGDPRXQWVRU 8VXDODQG&XVWRPDU\5DWHVGHSHQGLQJRQWKH+HDOWKFDUH3URYLGHU¶VUHODWLRQVKLSZLWK WKLV3ODQDQGRUWKH+HDOWKFDUH6HUYLFHVSURYLGHG $PEXODQFH $VSHFLDOO\GHVLJQHGRUHTXLSSHGYHKLFOHXVHGRQO\IRUWUDQVSRUWLQJWKH FULWLFDOO\LOORULQMXUHGWRDKHDOWKFDUHIDFLOLW\7KHDPEXODQFHVHUYLFHPXVWPHHWVWDWHDQG ORFDOUHTXLUHPHQWVIRUSURYLGLQJWUDQVSRUWDWLRQRIWKHVLFNRULQMXUHGDQGPXVWEH RSHUDWHGE\TXDOLILHGSHUVRQQHOZKRDUHWUDLQHGLQWKHDSSOLFDWLRQRIEDVLFOLIHVXSSRUW $SSURYHG&OLQLFDO7ULDO ±$SKDVH,,,,,,RU,9WULDOWKDWLVIHGHUDOO\IXQGHGE\VSHFLILHG $JHQFLHV 1DWLRQDO,QVWLWXWHVRI+HDOWK&'&3$JHQF\IRU+HDOWK&DUH5HVHDUFK&06 'HSWRI'HIHQVHRU9HWHUDQV$IIDLUVRUDQRQJRYHUQPHQWDOHQWLW\LGHQWLILHGE\1,+ JXLGHOLQHV RULVFRQGXFWHGXQGHUDQLQYHVWLJDWLRQDOQHZGUXJDSSOLFDWLRQUHYLHZHGE\ WKH)'$ LIVXFKDSSOLFDWLRQLVUHTXLUHG &ODLPV$GPLQLVWUDWRU $WKLUGSDUW\UHWDLQHGE\WKH3ODQ$GPLQLVWUDWRUDQG(PSOR\HU 7KH&ODLPV$GPLQLVWUDWRU¶VUHVSRQVLELOLWLH VW\SLFDOO\FRQVLVWRILQLWLDOO\GHWHUPLQLQJWKH YDOLGLW\RIFODLPVDQGDGPLQLVWHULQJEHQHILWSD\PHQWVXQGHUWKLV3ODQ7KHDFWXDO UHVSRQVLELOLWLHVRIWKH&ODLPV$GPLQLVWUDWRUDUHGHVFULEHGLQWKHFRQWUDFWEHWZHHQWKH 3ODQ$GPLQLVWUDWRU(PSOR\HUDQG&ODLPV$GPLQLVWUDWRU7KH&ODLPV$GPLQLVWUDWRULV 0D\R&OLQLF+HDOWK6ROXWLRQV &2%5$ &RQVROLGDWHG2PQLEXV%XGJHW5HFRQFLOLDWLRQ$FWRIDVDPHQGHGIURP WLPHWRWLPH &RGH 7KH,QWHUQDO5HYHQXH&RGHRIDVDPHQGHGIURPWLPHWRWLPH 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3URYLGHUVPD\ELOOD0HPEHUGLUHFWO\RUUHTXHVWSD\PHQWRI&RVW6KDULQJ$PRXQWVDWWKH WLPH&RYHUHG6HUYLFHVDUHSURYLGHG &RLQVXUDQFH D 7KHFKDUJHD0HPEHUPXVWSD\IRUFHUWDLQ&RYHUHG6HUYLFHVDIWHUDQ\ DSSOLFDEOH'HGXFWLEOHVDQG&RSD\PHQWVKDYHEHHQSDLGDQGXQWLOWKH$QQXDO2XWRI 3RFNHW0D[LPXPKDVEHHQUHDFKHG&RYHUHG6HUYLFHVVXEMHFWWR&RLQVXUDQFHDQGWKH DPRXQWVDUHOLVWHGLQWKH[[1038,617,1458,670][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1458,617,1471,669][11][,,][Arial]] [[1471,617,2300,669][11][,,][Arial]]VHFWLRQ&RLQVXUDQFHLVDSHUFHQWDJHRI WKH$OORZHG&KDUJH,QVRPHLQVWDQFHVWKH0HPEHUZLOOEHUHVSRQVLEOHDWWKHWLPHDQG SODFHRIVHUYLFHWRSD\DQ\&RLQVXUDQFHGLUHFWO\WRWKH+HDOWKFDUH3URYLGHU,QRWKHU LQVWDQFHVWKH0HPEHUZLOOEHELOOHGE\WKH+HDOWKFDUH3URYLGHU7KHVHDUUDQJHPHQWV DUHEHWZHHQWKH0HPEHUDQGWKH+HDOWKFDUH3URYLGHU &RSD\PHQW E 7KHFKDUJHD0HPEHUPXVWSD\IRUFHUWDLQ&RYHUHG6HUYLFHV&RYHUHG 6HUYLFHVVXEMHFWWRD&RSD\PHQWDQGWKHDPRXQWVDUHOLVWHGLQWKH[[1886,986,2140,1039][11][,I,][Arial]]6FKHGXOHRI [[2141,986,2307,1039][11][,I,][Arial]]%HQHILWV [[2306,986,2319,1038][11][,,][Arial ]] VHFWLRQ$&RSD\PHQWLVDIODWGROODUDPRXQW,QVRPHLQVWDQFHVWKH0HPEHUZLOOEH UHVSRQVLEOHDWWKHWLPHDQGSODFHRIVHUYLFHWRSD\DQ\&RSD\PHQWGLUHFWO\WRWKH +HDOWKFDUH3URYLGHU,QRWKHULQVWDQFHVWKH0HPEHUZLOOEHELOOHGE\WKH+HDOWKFDUH 3URYLGHU7KHVHDUUDQJHPHQWVDUHEHWZHHQWKH0HPEHUDQGWKH+HDOWKFDUH3URYLGHU &RSD\PHQWVGRQRWFRXQWWRZDUGWKH'HGXFWLEOH 'HGXFWLEOH F 7KHDJJUHJDWHDPRXQWIRUFHUWDLQ&RYHUHG6HUYLFHVWKDWLVD0HPEHU¶V UHVSRQVLELOLW\HDFK&RYHUDJH<HDUEHIRUHWKLV3ODQZLOOEHJLQWRSD\IRU&RYHUHG 6HUYLFHV&RSD\PHQWVGRQRWFRXQWWRZDUGWKH'HGXFWLEOH $QQXDO2XWRI3RFNHW0D[LPXP G 7KHWRWDO'HGXFWLEOH&RLQVXUDQFHDQG&RSD\PHQW DPRXQWVIRUFHUWDLQ&RYHUHG6HUYLFHVWKDWDUHD0HPEHU¶VUHVSRQVLELOLW\GXULQJD &RYHUDJH<HDU7KHIROORZLQJDPRXQWVDUH[[1410,1671,1476,1724][11][,I,][Arial]]QRW [[1473,1671,1486,1723][11][,,][Arial]] [[1486,1671,2173,1723][11][,,][Arial]]FRQVLGHUHGRUWDNHQLQWRDFFRXQW &KDUJHVWKDWDUHQRW&RYHUHG6HUYLFHVXQGHUWKLV3ODQ HJFKDUJHVZKLFKH[FHHG 8VXDODQG&XVWRPDU\5DWHVDQGFRVWVSDLGE\WKH0HPEHUDVDUHVXOWRIWKH0HPEHU¶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¶V&RYHUDJH<HDULV-DQXDU\WKURXJK'HFHPEHU &RYHUHG6HUYLFH ±+HDOWKFDUH6HUYLFHVGHVFULEHGLQWKH[[1695,2408,2115,2461][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[2116,2408,2129,2460][11][,,][Arial]] [[2128,2408,2286,2460][11][,,][Arial]]VHFWLRQ [[2287,2408,2350,2460][11][,,][Arial]] IRUZKLFK3ODQEHQHILWVZLOOEHSURYLGHGXQOHVVOLPLWHGRUH[FOXGHGLQWKH[[2006,2462,2225,2515][11][,I,][Arial]]([FOXVLRQV [[2225,2462,2238,2514][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] WUDLQHGDQGRUOLFHQVHGPHGLFDOSHUVRQQHORUSDUDPHGLFDOSHUVRQQHO&XVWRGLDO&DUH DOVRLQFOXGHVUHVWFXUHVDQGKRPHFDUHSURYLGHGE\IDPLO\PHPEHUV 'HSHQGHQW $GHSHQGHQWRIWKH6XEVFULEHUZKRTXDOLILHVIRUPHPEHUVKLSXQGHUWKLV 3ODQLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVVSHFLILHGEHORZ D $6SRXVH E 7 KH6XEVFULEHU¶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¶VJUDQGFKLOGZKRLVILQDQFLDOO\GHSHQGHQWXSRQ WKHFRYHUHGJUDQGSDUHQWDQGZKRUHVLGHVZLWKWKDW FRYHUHGJUDQGSDUHQWFRQWLQXRXVO\IURPELUWK8SRQ UHTXHVWRIWKH(PSOR\HUWKH6XEVFULEHUPXVWSURYLGH VDWLVIDFWRU\SURRIRIUHVLGHQFHDQGGHSHQGHQF\ J )RVWHUFKLOG 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] F 7 KH6XEVFULEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]] (QUROOPHQW'DWH 7 KHGDWHRIWKH(OLJLEOH(PSOR\HH¶VRU'HSHQGHQW¶VILUVWGD\RI FRYHUDJHXQGHUWKLV3ODQRULIHDUOLHUWKHILUVWGD\RIWKH:DLWLQJ3HULRGIRUWKH(OLJLEOH (PSOR\HH¶VRU'HSHQGHQW¶VHQUROOPHQW [[225,1618,238,1671][11][,I,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] WR[LFLW\LWVVDIHW\LWVHIILFDF\RULWVHIILFDF\DVFRPSDUHGZLWKWKHVWDQGDUG PHDQVRIWUHDWPHQWRUGLDJQRVLV 1RWZLWKVWDQGLQJWKHDERYHWKLV3ODQPD\GHWHUPLQHWKDWDGUXJGHYLFH+HDOWKFDUH6HUYLFHRU SURFHGXUHLVQRW,QYHVWLJDWLYHLILWVKRZVVXIILFLHQWSURPLVH,QRUGHUWRVKRZVXIILFLHQWSURPLVH WKLV3ODQPXVWILQGRQDFDVHE\FDVHEDVLVWKDWWKHGUXJGHYLFH+HDOWKFDUH6HUYLFHRU SURFHGXUHPHHWVWKHIROORZLQJFULWHULD x 5HOLDEOHHYLGHQFHSUHOLPLQDULO\VXJJHVWVDKLJKSUREDELOLW\RILPSURYHG RXWFRPHVFRPSDUHGWRVWDQGDUGWUHDWPHQW HJVLJQLILFDQWO\LQFUHDVHG OLIHH[SHFWDQF\RUVLJQLILFDQWO\LPSURYHGIXQFWLRQ DQG x 5HOLDEOHHYLGHQFHVXJJHVWVFRQFOXVLYHO\WKDWEHQHILFLDOHIIHFWVRXWZHLJK DQ\KDUPIXOHIIHFWVDQG x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rial]] )0/$ 7KH)DPLO\DQG0HGLFDO/HDYH$FWRIDVDPHQGHGIURPWLPHWRWLPH +HDOWK&DUH5HIRUP 3DWLHQW3URWHFWLRQDQG$IIRUGDEOH+HDOWK&DUH$FW ³33$&$´ DV DPHQGHGE\WKH+HDOWK&DUHDQG(GXFDWLRQ5HFRQFLOLDWLRQ$FW ³5HFRQFLOLDWLRQ$FW´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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V,OOQHVVRU ,QMXU\UHTXLULQJRQO\,QWHUPLWWHQW&DUH ,OOQHVV $Q\QRQRFFXSDWLRQDOVLFNQHVVRUGLVRUGHU,QFOXGLQJSUHJQDQF\DQGUHODWHG FRQGLWLRQV7KHWHUP³,OOQHVV´GRHVQRWLQFOXGHDQLOOQHVVZLWKUHVSHFWWRZKLFKEHQHILWV DUHSD\DEOHXQGHUDQ\ZRUNHUV¶FRPSHQVDWLRQRFFXSDWLRQDOGLVHDVHRUVLPLODUODZ ,QFOXGLQJRU,QFOXGHV ,QFOXGLQJEXWQRWOLPLWHGWR ,QMXU\ $QRQRFFXSDWLRQDODFFLGHQWDOERGLO\LQMXU\FDXVHGGLUHFWO\DQGH[FOXVLYHO\E\ H[WHUQDOYLROHQWDQGSXUHO\DFFLGHQWDOPHDQV[[1456,2040,1481,2093][11][,I,][Arial]] [[1481,2040,1494,2092][11][,,][Arial]] [[1493,2040,2243,2092][11][,,][FEFDAE4A085]]7KHWHUP³,QMXU\´GRHVQRW LQFOXGHDQ LQMXU\ZLWKUHVSHFWWRZKLFKEHQHILWVDUHSD\DEOHXQGHUDQ\ZRUNHUV¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] FRQGLWLRQDQGGLDJQRVWLFWHVWLQJDQGSUHYHQWLYHVHUYLFHVWKDWDUHQRWRWKHUZLVH H[FOXGHGXQGHUWKLV3ODQ0HGLFDOO\1HFHVVDU\FDUHPXVW EHFRQVLVWHQWZLWKJHQHUDOO\DFFHSWHGSDUDPHWHUVDVGHWHUPLQHGE\+HDOWKFDUH 3URYLGHUVLQWKHVDPHRUVLPLODUJHQHUDOVSHFLDOW\DVW\SLFDOO\PDQDJHWKHFRQGLWLRQ SURFHGXUHRUWUHDWPHQWDWLVVXHDQG KHOSUHVWRUHRUPDLQWDLQWKH0HPEHU¶VKHDOWKRU SUHYHQWGHWHULRUDWLRQRIWKH0HPEHU¶VFRQGL WLRQRU SUHYHQWWKHUHDVRQDEO\OLNHO\RQVHWRIDKHDOWKSUREOHPRUGHWHFWDQLQFLSLHQWSUREOHP 0HGLFDUH 7LWOH;9,,,RIWKH6RFLDO6HFXULW\$FWDVDPHQGHGIURPWLPHWRWLPH 0HPEHU $6XEVFULEHURU'HSHQGHQWZKRLVSDUWLFLSDWLQJXQGHUWKLV3ODQLQDFFRUGDQFH ZLWKWKH[[696,1005,1228,1058][11][,I,][Arial]](OLJLELOLW\DQG3DUWLFLSDWLRQ [[1229,1005,1242,1057][11][,,][Arial]] [[1242,1005,2240,1057][11][,,][Arial]]VHFWLRQDQGZKRVHFRYHUDJHKDVQRWWHUPLQDWH G 0HPEHUDOVRLQFOXGHVIRUPHU6XEVFULEHUVRUIRUPHU'HSHQGHQWVZKRDUHRWKHUZLVH HQWLWOHGWRFRYHUDJHDQGSURSHUO\HQUROOHGXQGHUWKLV3ODQ WKFDUHEHQHILWVWR0HPEHUV 3UHVFULSWLRQ'UXJ 0 HGLFDWLRQVDQGGUXJVWKDWEHDUWKHOHJHQG³)HGHUDOODZSURKLELWV GLVSHQVLQJZLWKRXWDSUHVFULSWLRQ´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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3UHYHQWLYH&DUH +HDOWKFDUH6HUYLFHVUHQGHUHGVROHO\IRUWKHSXUSRVHRIKHDOWK PDLQWHQDQFHDQGQRWIRUWKHWUHDWPHQWRIDQ,OOQHVVRU,QMXU\,QFOXGLQJDVDSSURSULDWH WKRVH+HDOWKFDUH6HUYLFHVUHTXLUHGE\+HDOWK&DUH5HIRUPDQGUHJXODWRU\JXLGDQFH 3ULRU$XWKRUL]DWLRQ $XWKRUL]DWLRQIURPWKLV3ODQIRUVSHFLILF&RYHUHG6HUYLFHVEHIRUH WKH\DUHUHQGHUHGLQDFFRUGDQFHZLWKWKH[[1382,564,1864,617][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[1861,564,1874,616][11][,,][Arial]] [[1874,564,2288,616][11][,,][Arial]]VHFWLRQ5HTXHVWLQJ 3ULRU$XWKRUL]DWLRQLVD3UH6HUYLFH&ODLPDVGHVFULEHGLQWKH[[1779,617,2153,670][11][,I,][Arial]]&ODLPDQG$SSHDO [[525,670,760,723][11][,I,][Arial]]3URFHGXUHV [[760,670,773,722][11][,,][Arial]] [[773,670,930,722][11][,,][Arial]]VHFWLRQ [[930,670,943,722][11][,,][Arial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¶VXQFRPSHQVDWHGSULPDU\FDUHJLYHUVUHOLHI ZKHQQHFHVVDU\LQRUGHUWRPDLQWDLQWKH0HPEHUDWKRPH 5HWLUHH $IRUPHU(OLJLEOH(PSOR\HHZKRLVUHFHLYLQJDGLVDELOLW\EHQHILWRUDQDQQXLW\ IURPD0LQQHVRWDSXEOLFSHQVLRQSODQRWKHUWKDQDYROXQWHHUILUHILJKWHURUZKRKDVPHW DJHDQGVHUYLFHUHTXLUHPHQWVQHFHVVDU\WRUHFHLYHDQDQQXLW\IURPVXFKDSODQ 6NLOOHG&DUH 1XUVLQJRUUHKDELOLWDWLYHVHUYLFHVUHTXLULQJWKHVNLOOVRIWHFKQLFDORU SURIHVVLRQDOPHGLFDOSHUVRQQHOWRGHYHORSSURYLGHDQGHYDOXDWHWKHFDUHDQGDVVHVV WKH0HPEHU¶VFKDQJLQJFRQGLWLRQ 6SRXVH 7KH6XEVFULEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 8UJHQW&DUH $FRQGLWLRQUHTXLULQJ0HGLFDOO\1HFHVVDU\FDUHWRWUHDWDQXQIRUHVHHQ ,OOQHVVRU,QMXU\ZKLFKLVQHFHVVDU\WRSUHYHQWVHULRXVGHWHULRUDWLRQRID0HPEHU¶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rial]](OLJLELOLW\DQG3DUWLFLSDWLRQ [[1957,1821,2214,1873][11][,,][Arial]]VHFWLRQDQ\ SHULRGEHIRUHVXFKODWHRUVSHFLDOHQUROOPHQWLVQRWD:DLWLQJ3HULRG3HULRGVRI HPSOR\PHQWLQDQHPSOR\PHQWFODVVLILFDWLRQWKDWLVQRWHOLJLEOHIRUFRYHUDJHXQGHUWKLV 3ODQGRHVQRWFRQVWLWXWHD:DLWLQJ3HULRG 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,219 (/,*,%,/,7<$1'3$57,&,3$7,21 (OLJLELOLW\IRU(PSOR\HH&RYHUDJH (OLJLELOLW\DQGSDUWLFLSDWLRQDUHDVIROORZV (OLJLEOH(PSOR\HHV D $Q(PSOR\HHLVDQ(OLJLEOH(PSOR\HHDVORQJDVKHVKHLVZRUNLQJDVDUHJXODU (PSOR\HHDWOHDVWWZHQW\ KRXUVRUPRUHSHUZHHNIRUWKH(PSOR\HUDQGLVQRW DOUHDG\FRYHUHGXQGHUWKLV3ODQRUDQRWKHU&LW\RI5RFKHVWHUPHGLFDOSODQDVDVSRXVH RUGHSHQGHQWRIDQRWKHU3ODQ6XEVFULEHU &RYHUDJH6WDUW'DWH E $Q(PSOR\HHLVDQ(OLJLEOH(PSOR\HHRQWKHILUVWGD\RIWKHFDOHQGDUPRQWKIROORZLQJRU FRLQFLGLQJZLWKWKH(PSOR\HH¶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¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶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³VSHFLDOHQUROOPHQW´VLWXDWLRQRFFXUVRU GXULQJWKHDQQXDORSHQHQUROOPHQW 'HSHQGHQWV $'HSHQGHQWPXVWEHHQUROOHGZLWKLQWKLUW\RQH GD\VIURPWKHGDWHKHVKH ILUVWVDWLVILHVWKHGHILQLWLRQRI'HSHQGHQW,IHQUROOPHQWGRHVQRWRFFXUZLWKLQWKLV LQLWLDOSHULRGWKH'HSHQGHQWPD\HQUROOLQWKLV3ODQRQO\LID³VSHFLDOHQUROOPHQW´ VLWXDWLRQRFFXUVRUGXULQJWKHDQQXDORSHQHQUROOPHQW 2SHQ(QUROOPHQW E 3ULRUWRWKHVWDUWRID&RYHUDJH<HDUWKLV3ODQKDVDQRSHQHQUROOPHQWSHULRG³2SHQ HQUROOPHQWSHULRG´PHDQVWKHSHULRGRIWLPHRFFXUULQJWRZDUGW KHHQGRIWKH&RYHUDJH <HDUGXULQJZKLFK (OLJLEOH(PSOR\HHVZKRDUHQRWFRYHUHGXQGHUWKLV3ODQPD\HOHFW WREHJLQFRYHUDJHHIIHFWLYHWKHILUVWGD\RIWKHXSFRPLQJ&RYHUDJH<HDUDQG 6XEVFULEHUVZLOOEHJLYHQDQRSSRUWXQLW\WRFKDQJHWKHLUFRYHUDJHHIIHFWLYHWKHILUVWGD\ RIWKHXSFRPLQJ&RYHUDJH<HDU7KHWHUPVRIWKHRSHQHQUROOPHQWSHULRG,QFOXGLQJ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] GXUDWLRQRIWKHHOHFWLRQSHULRGVKDOOEHGHWHUPLQHGE\WKH3ODQ$GPLQLVWUDWRUDQG FRPPXQLFDWHGSULRUWRWKHVWDUWRIDQRSHQHQUROOPHQWSHULRG 6SHFLDO(QUROOPHQW'XHWR/RVVRI2WKHU+HDOWK&RYHUDJH F 8QGHUFHUWDLQFLUFXPVWDQFHVDQ(OLJLEOH(PSOR\HHRUKLVKHU'HSHQGHQW V ZKRGLGQRW HQUROOGXULQJWKHLQLWLDOHQUROOPHQWSHULRGGXULQJRSHQHQUROOPHQWRUZKHQDFKDQJHLQ VWDWXVHYHQWRFFXUUHGPD\HQUROOEHIRUHWKHQH[WRSHQHQUROOPHQWSHULRG7KHVH FLUFXPVWDQFHVZDUUDQW³VSHFLDOHQUROOPHQW´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³/RVV RIHOLJLELOLW\´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¶VFRQWULEXWLRQWRZDUGWKDWFRYHUDJHWHUPLQDWHGRU WKHGDWHRQZKLFKWKHFODLPLVGHQLHGGXHWRWKHRSHUDWLRQRIDOLIHWLPH OLPLW 7KH(OLJLEOH(PSOR\HHRU'HSHQGHQWVDWLVILHVDOORIWKHIROORZLQJFULWHULD 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V IDLOXUHWRUHPLWSUHPLXPVRQDWLPHO\EDVLVRUDVDUHVXOWRIWKH(OLJLEOH (PSOR\HHRU'HSHQGHQWLQFXUULQJDFODLPWKDWPHHWVRUH[FHHGVWKH OLIHWLPHOLPLWRQDOOEHQHILWVDQGQRRWKHU&2%5$FRQWLQXDWLRQLV DYDLODEOH DQG G 6XEPLWVDZULWWHQUHTXHVWIRUHQUROOPHQWWRWKH3ODQ$GPLQLVWUDWRURULWV GHVLJQHHZLWKLQWKLUW\RQH GD\VRIWKHGDWHRIWKHORVVRIFRYHUDJH 7KH(OLJLEOH(PSOR\HHRU'HSHQGHQWVDWLVILHVDOORIWKHIROORZLQJFULWHULD D (IIHFWLYH$SULODQ(OLJLEOH(PSOR\HHRU'HSHQGHQWZLWKFRYHUDJH XQGHUD6WDWH0HGLFDLGSODQRU&KLOGUHQ¶V+HDOWK,QVXUDQFH3URJUDP 6&+,3 ORVHVVXFKHOLJLELOLW\ E /RVVRIHOLJLELOLW\XQGHUVXFKSODQLVQRWGXHWRWKH(OLJLEOH(PSOR\HH¶VRU 'HSHQGHQW¶VIDLOXUHWRSD\UHTXLUHGSUHPLXPVRQDWLPHO\EDVLVRU WHUPLQDWLRQIRUFDXVHDQG F 6XEPLWVDZULWWHQUHTXHVWIRUHQUROOPHQWWR3ODQ$GPLQLVWUDWRURULWV GHVLJQHHZLWKLQVL[W\ GD\VRIWKHGDWHRIWKHORVVRIFRYHUDJH 6SHFLDO(QUROOPHQW'XHWR$GGLWLRQRI'HSHQGHQW G $Q(OLJLEOH(PSOR\HH¶VPDUULDJHRUWKHELUWKRUDGRSWLRQRIKLVKHUFKLOGWULJJHUVVSHFLDO HQUROOPHQWULJKWV 1RQ3DUWLFLSDWLQJ(PSOR\HHV0D\$OVR(QUROO 7KHDGGLWLRQRIDQHZGHSHQGHQWWULJJHUVHQUROOPHQWULJKWVIRUDQ(OLJLEOH (PSOR\HHHYHQLIKHVKHGRHVQRWSDUWLFLSDWHLQWKLV3ODQDWWKHWLPHRIWKHHYHQW )RUH[DPSOHXSRQWKHELUWKRIDQ(OLJLEOH(PSOR\HH¶VFKLOGWKH(O LJLEOH (PSOR\HH DVVXPLQJWKDWKHVKHGLGQRWSUHYLRXVO\HQUROO KLVKHU6SRXVHDQG KLVKHUQHZERUQFKLOGPD\DOOHQUROOEHFDXVHRIWKHFKLOG¶VELUWK7KHVDPHUXOH DSSOLHVWRWKH(OLJLEOH(PSOR\HH¶VPDUULDJHRUDGRSWLRQRIDFKLOGLIWKH(OLJLEOH (PSOR\HHKDGQRWSUHYLRXVO\HQUROOHGLQWKLV3ODQ 'HDGOLQHIRU6SHFLDO(QUROOPHQW3HULRG 7KH(OLJLEOH(PSOR\HHPXVWUHTXHVWVSHFLDOHQUROOPHQWLQWKLV3ODQZLWKLQWKLUW\ RQH GD\VRIPDUULDJHRUELUWKDGRSWLRQRUSODFHPHQWIRUDGRSWLRQRIKLVKHU FKLOG,IWKH3ODQ$GPLQLVWUDWRURULWVGHVLJQHHGRHVQRWUHFHLYHWKH(OLJLEOH (PSOR\HH¶VFRPSOHWHGUHTXHVWIRUHQUROOPHQWZLWKLQWKLVGHDGOLQHWKH(OLJLEOH (PSOR\HHDQGKLVKHU'HSHQGHQWVORVHVSHFLDOHQUROOPHQWULJKWVIRUWKDWHYHQW 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6SHFLDO(QUROOPHQW'XHWR3UHPLXP$VVLVWDQFH8QGHU6WDWH0HGLFDLG3ODQRU H 6WDWH&KLOGUHQ¶V+HDOWK,QVXUDQFH3URJUDP 6&+,3 ,IDQ(OLJLEOH(PSOR\HHRU'HSHQGHQW V GLGQRWHQUROOGXULQJWKHLQLWLDOHQUROOPHQWSHULRG GXULQJRSHQHQUROOPHQWRUZKHQDFKDQJHLQVWDWXVHYHQWRFFXUUHGDQGEHFRPHV HOLJLEOHIRUSUHPLXPDVVLVWDQFHXQGHUD6WDWH0HGLFDLGRU6WDWH&KLOGUHQ¶V+HDOWK 3URJUDP 6&+,3 WKHQWKH(OLJLEOH(PSOR\HHRU'HSHQGHQW V PD\HQUROOEHIRUHWKH QH[WRSHQHQUROOPHQWSHULRGDVORQJDVWKH\QRWLI\WKH3ODQ$GPLQLVWUDWRULQZULWLQJZLWKLQ VL[W\ GD\VRIWKHGDWHWKH\EHFDPHHOLJLEOHIRUWKHSUHPLXPDVVLVWDQFH 2SW2XW I $Q(OLJLEOH(PSOR\HHPD\GHFOLQHFRYHUDJH ³RSWRXW´ XQGHUWKLV3ODQLIWKH\DUH FRYHUHGXQGHUDQRWKHUTXDOLILHGSODQDQGSURYLGHDGHTXDWHSURRI6XFKDQ(OLJLEOH (PSOR\HHVKDOOEHSURYLGHGZLWKWKHDSSURSULDWHQRWLFHUHTXLUHGXQGHU+,3$$UHJDUGLQJ RSWLQJRXWRIFRYHUDJH (IIHFWLYH'DWHRI&RYHUDJH 7KHGDWHRQZKLFKFRYHUDJHEHFRPHVHIIHFWLYHGHSHQGVXSRQZKHQHQUROOPHQWRFFXUV D (QUROOPHQWZLWKLQ,QLWLDO(QUROOPHQW3HULRG 6XEVFULEHUV 7KHHIIHFWLYHGDWHRIFRYHUDJHIRU6XEVFULEHUVZKRHQUROOGXULQJWKHLQLWLDO HQUROOPHQWSHULRGLVWKHILUVWGD\RIWKHILUVWGD\RIWKHPRQWKIROORZLQJWKH(OLJLEOH (PSOR\HH¶VILUVWGD\RIHPSOR\PHQWRUFKDQJHWRHOLJLEOHVWDWXVZLWKWKH (PSOR\HU 'HSHQGHQWV 7KHHIIHFWLYHGDWHRIFRYHUDJHIRU'HSHQGHQWVLVRQWKH(OLJLEOH(PSOR\HH¶V HIIHFWLYHGDWH ,I'HSHQGHQWVWDWXVLVDFTXLUHGDIWHUWKH6XEVFULEHU¶VLQLWLDOHOLJLELOLW\WKHHIIHFWLYHGDWH RIFRYHUDJHVKDOOEHWKHGDWHRQZKLFKWKHQHZ'HSHQGHQWEHFRPHVHOLJLEOHIRU FRYHUDJHXQGHUWKLV3ODQSURYLGHGWKH6XEVFULEHUFRPSOHWHVDFKDQJHIRUPDQG VXEPLWVLWWRWKH(PSOR\HUZLWKLQWKLUW\ GD\VDIWHUWKHDWWDLQPHQWRI'HSHQGHQW VWDWXV (QUROOPHQW1RW:LWKLQ,QLWLDO(QUROOPHQW3HULRG E ,IDQ(OLJLEOH(PSOR\HHRU'HSHQGHQWGRHVQRWHQUROOZLWKLQWKHLQLWLDOHQUROOPHQWSHULRG KHRUVKHPXVWZDLWXQWLOD³VSHFLDOHQUROOPHQW´VLWXDWLRQRFFXUV,ID³VSHFLDOHQUROOPHQW´ VLWXDWLRQRFFXUVWKH(OLJLEOH(PSOR\HHRU'HSHQGHQWPXVWHQUROOZLWKLQWKLUW\RQH GD\VRIWKH³VSHFLDOHQUROOPHQW´VLWXDWLRQ¶VRFFXUUHQFH 6SHFLDO(QUROOPHQW :KHQHQUROOPHQWRFFXUVDVWKHUHVXOWRIDVSHFLDOHQUROOPHQWGXHWRORVVRI RWKHUKHDOWKFRYHUDJHDVGHVFULEHGDERYHWKHHIIHFWLYHGDWHRIFRYHUDJHLV WKHILUVWGD\RIWKHPRQWKIROORZLQJWKHUHFHLSWDQGDFFHSWDQFHRIWKH FRPSOHWHGHQUROOPHQWPDWHULDOVE\WKH3ODQ$GPLQLVWUDWRURULWVGHVLJQHH :KHQHQUROOPHQWRFFXUVDVWKHUHVXOWRIDVSHFLDOHQUROOPHQWGXHWRDGGLWLRQRI D'HSHQGHQWDVGHVFULEHGDERYHWKHHIIHFWLYHGDWHRIFRYHUDJHLVWKHGDWHRI WKHHYHQW 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] /DWH(QUROOPHQW ,I0HPEHUGRHVQRWHQUROOZLWKLQWKHLQLWLDOHQUROOPHQWDQGGRHVQRWTXDOLI\IRU 6SHFLDO(QUROOPHQW0HPEHULVDODWHHQUROOHH$VDODWHHQUROOHH6XEVFULEHU PD\RQO\HQUROOVHOIDQGDQ\'HSHQGHQWVGXULQJWKLV3ODQ¶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rial]]5HWLUHH&RYHUDJH [[1262,2301,1275,2353][11][,,][Arial]] [[1275,2301,1721,2353][11][,,][Arial]]VXEVHFWLRQDERYHDQG [[1721,2301,1734,23 53][11][,,][Arial]] [[1733,2301,1809,2353][11][,,][Arial]]WKH [[1810,2301,2130,2354][11][,I,][Arial]]&RQWLQXDWLRQRI [[375,2353,459,2406][11][,I,][Arial]]+HD [[459,2353,808,2406][11][,I,][Arial]]OWKFDUH&RYHUDJH [[809,2353,822,2405][11][,,][Arial]] [[822,2353,1675,2405][11][,,][FEFDAE4A085]]VHFWLRQD6XEVFULEHU¶V SDUWLFLSDWLRQXQGHU [[1685,2353,1861,2405][11][,,][Arial]]WKLV3ODQ [[1861,2353,1874,2405][11][,,][Arial]] [[1873,2353,2322,2405][11][,,][Arial]]ZLOOFHDVHDWPLGQLJKW RQWKHODVWGD\RIWKHFDOHQGDUPRQWKLQZKLFKWKHHDUOLHVWRIWKHIROORZLQJHYHQWVRFFXUV D 7KHGDWHWKH6XEVFULEHUWHUPLQDWHVHPSOR\PHQWZLWKWKH(PSOR\HU E 7KHGDWHWKH6XEVFULEHU¶VHPSOR\PHQWSRVLWLRQRUVWDWXVFKDQJHVVXFKWKDWKHVKHLVQR ORQJHUDQ(OLJLEOH(PSOR\HH F 7KHGDWHHQGLQJWKHSHULRGIRUZKLFKWKHODVWFRQWULEXWLRQLVPDGHLIWKH6XEVFULEHUIDLOV WRPDNHDQ\UHTXLUHGFRQWULEXWLRQVZKHQGXH G 7KHGDWHWKH(PSOR\HUWHUPLQDWHVWKLV3ODQRULWVSDUWLFLSDWLRQLQWKLV3ODQ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H 7KHGDWHRIWKH6XEVFULEHU¶VGHDWK 'HSHQGHQW7HUPLQDWLRQRI&RYHUDJH ([FHSWDVSURYLGHGLQWKH[[903,459,1262,512][11][,I,][Arial]]5HWLUHH&RYHUDJH [[1262,459,1275,511][11][,,][Arial]] [[1275,459,1733,511][11][,,][Arial]]VXEVHFWLRQDERYHDQG [[1733,459,1797,511][11] [,,][Arial]]WKH [[1797,459,1810,512][11][,I,][Arial]] [[1810,459,2130,512][11][,I,][Arial]]&RQWLQXDWLRQRI [[375,512,809,565][11][,I,][Arial]]+HDOWKFDUH&RYHUDJH [[809,512,822,564][11][,,][Arial]] [[822,512,1680,564][11][,,][FEFDAE4A085]]VHFWLRQD'HSHQGHQW¶VSDUWLFLSDWLRQXQGHU [[1690,512,1866,564][11 ][,,][Arial]]WKLV3ODQ [[1866,512,1879,564][11][,,][Arial]] [[1878,512,2327,564][11][,,][Arial]]ZLOOFHDVHDWPLGQLJKW RQWKHODVWGD\RIWKHFDOHQGDUPRQWKLQZKLFKWKHHDUOLHVWRIWKHIROORZLQJHYHQWVRFFXUV D 7KHGDWHWKHGHSHQGHQWFHDVHVWREHDQHOLJLEOH'HSHQGHQWDVGHILQHGLQWKLV3ODQ E 7KHGDWHRIWHUPLQDWLRQRIWKH6XEVFULEHU¶VFRYHUDJHXQGHUWKLV3ODQ VHHDERYH F 7KHGDWHWKH'HSHQGHQWEHFRPHVFRYHUHGXQGHUWKLV3ODQDVD6XEVFULEHU G 7KHGDWH'HSHQGHQWFRYHUDJHLVGLVFRQWLQXHGXQGHUWKLV3ODQ H 7KHHQGRIWKHSHULRGIRUZKLFKWKH6XEVFULEHUFHDVHVWRPDNHWKHUHTXLUHG FRQWULEXWLRQVIRUWKH'HSHQGHQW I )RU'HSHQGHQWVZKRVHFRYHUDJHLVUHTXLUHGSXUVXDQWWRD40&62WKHODVWGD\RIWKH FDOHQGDUPRQWKFRYHUDJHLVQRORQJHUUHTXLUHGXQGHUWKHWHUPVRIWKHRUGHURUWKLV3ODQ 0HPEHU7HUPLQDWLRQRI&RYHUDJH ([FHSWDVSURYLGHGLQWKH[[903,1460,1262,1513][11][,I,][Arial]]5HWLUHH&RYHUDJH [[1262,1460,1275,1512][11][,,][Arial]] [[1275,1460,1631,1512][11][,,][Arial]]VXEVHFWLRQDERYH [[1631,1460,1644,1512][ 11][,,][Arial]] [[1644,1460,1657,1512][11][,,][Arial]] [[1657,1460,1670,1512][11][,,][Arial]]W [[1670,1460,1721,1512][11][,,][Arial]]KH [[1721,1460,1734,1512][11][,,][Arial]] [[1734,1460,2289,1513 ][11][,I,][Arial]]&RQWLQXDWLRQRI+HDOWKFDUH [[375,1513,574,1566][11][,I,][Arial]]&RYHUDJH [[574,1513,587,1565][11][,,][Arial]] [[587,1513,757,1565][11][,,][Arial]]VHFWLRQ [[758,1513,923,1565][11][,,][Arial]]DQGWKH [[923,1513,1157,1566][11 ][,I,][Arial]]5HVFLVVLRQ [[1158,1513,1534,1565][11][,,][Arial]]VXEVHFWLRQEHORZ [[1535,1513,2214,1565][11][,,][FEFDAE4A085]]DQ\0HPEHU¶VSDUWLFLSDWLRQXQGHU [[2226,1513,2309,1565][11][,,][Arial]] WKLV 3ODQZLOOFHDVHDWPLGQLJKWRQWKHODVWGD\RIWKHFDOHQGDUPRQWKLQZKLFKWKHHDUOLHVWRIWKH IROORZLQJHYHQWVRFFXUV x 7KHGDWHRQZKLFKD0HPEHUDOORZVXQDXWKRUL]HGSHUVRQVWRXVHKLVKHU0HPEHUVKLS&DUG WRREWDLQ3ODQEHQHILWVIRUWKHPVHOYHV6HH[[1348,1780,1715,1833][11][,I,][Arial]]0HPEHUVKLS&DUG [[1711,1780,1724,1832][11][,,][Arial]] [[1724,1780,2092,1832][11][,,][Arial]]VXEVHFWLRQDERYH [[2093,1780,2106,1832][11][,,][Arial]] x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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,219,, 87,/,=$7,210$1$*(0(17 WKRULW\WRGHWHUPLQHZKHWKHUSURYLGHG VHUYLFHVDUH&RYHUHG6HUYLFHVXQGHUWKLV3ODQ 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]' [[1008,1724,1215,1777][11][,I,][Arial]]LVFHFWRP\ [[1212,1724,1225,1777][11][,I,][Arial]] [[975,1776,988,1829][11][,I,][Arial]] [[975,1829,1007,1882][11][,I,][Arial]]( [[1006,1829,1625,1882][11][,I,][Arial]]SLGXUDOLQMHFWLRQVRUGLVFRJUDP [[1625,1829,1638,1882][11][,I,][Arial]] [[975,1882,988,1935][11][,I,][Arial]] [[975,1935,1011,1988][11][,I,][Arial]]2 [[1011,1935,1739,1988][11][,I,][Arial]]VWHRWRP\RUDUWKURGHVLVRIWKHVSLQH [[1739,1935,1752,1988][11][,I,][Arial]] [[975,1987,988,2040][11][,I,][Arial]] [[975,2040,1008,2093][11][,I,][Arial]]' [[1008,2040,1294,2093][11][,I,][Arial]]HFRPSUHVVLRQ [[1294,2040,1307,2093][11][,I,][Arial]] [[975,2093,988,2146][11][,I,][Arial]] [[975,2145,1010,2198][11][,I,][Arial]]9 [[1006,2145,1414,2198][11][,I,][Arial]]HUWHEUDOFRUSHFWRP\ [[1411,2145,1424,2198][11][,I,][Arial]] [[975,2198,988,2251][11][,I,][Arial]] %OHSKDURSODVW\EURZOLIWVRUNHUDWRSODVW\ E %UHDVWVXUJHU\ F [[825,2409,1080,2462][11][,I,][Arial]]3OHDVHQRWH [[1080,2409,1093,2462][11][,I,][Arial]] [[1125,2409,1560,2462][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,2409,1627,2462][11][,I,][Arial]]QRW [[1625,2409,1638,2462][11][,I,][Arial]] [[1638,2409,2290,2462][11][,I,][Arial]]UHTXLUHGIRUDQ\VXUJHU\UHODWHG [[1125,2462,2115,2515][11][,I,][Arial]]WRFDQFHUWUHDWPHQWRUUHFRQVWUXFWLRQIROORZLQJD [[1125,2514,1947,2567][11][,I,][Arial]]PDVWHFWRP\IRUEUHDVWFDQFHUWUHDWPHQW [[1948,2514,1961,2567][11][,I,][Arial]] [[825,2567,838,2620][11][,I,][Arial]] &RVPHWLFRUUHFRQVWUXFWLYHSURFHGXUHVDQGVXUJHU\ G [[825,2672,1080,2725][11][,I,][Arial]]3OHDVHQRWH [[1080,2672,1093,2725][11][,I,][Arial]] [[1125,2672,1560,2725][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,2672,1627,2725][11][,I,][Arial]]QRW [[1625,2672,1638,2725][11][,I,][Arial]] [[1638,2672,2185,2725][11][,I,][Arial]]UHTXLUHGIRUUHFRQVWUXFWLRQ [[1125,2725,2176,2778][11][,I,][Arial]]IROORZLQJDPDVWHFWRP\IRUEUHDVWFDQFHUWUHDWPHQW [[2178,2725,2191,2778][11][,I,][Arial]] )RRWVXUJHU\ H [[825,2831,1080,2884][11][,I,][Arial]]3OHDVHQRWH [[1080,2831,1093,2884][11][,I,][Arial]] [[1125,2831,1560,2884][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,2831,1627,2884][11][,I,][Arial]]QRW [[1625,2831,1638,2884][11][,I,][Arial]] [[1638,2831,2292,2884][11][,I,][Arial]]UHTXLUHGIRUIRRWVXUJHU\LIWKHUH [[1125,2883,1906,2936][11][,I,][Arial]]KDVEHHQSULRUFRQVHUYDWLYHWUHDWPHQW [[1907,2883,1920,2936][11][,I,][Arial]] [[825,2936,838,2989][11][,I,][Arial]] 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 2UDOVXUJHU\PD[LOORIDFLDOVXUJHU\RUXYXORSDODWRSKDU\QJRSODVW\ I 8333 [[825,406,1080,459][11][,I,][Arial]]3OHDVHQRWH [[1080,406,1093,459][11][,I,][Arial]] [[1125,406,1560,459][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,406,1627,459][11][,I,][Arial]]QRW [[1625,406,1638,459][11][,I,][Arial]] [[1638,406,2205,459][11][,I,][Arial]]UHTXLUHGIRURUDOVXUJHU\IRU [[1125,459,1532,512][11][,I,][Arial]]WUHDWPHQWRIFDQFHU [[1533,459,1546,512][11][,I,][Arial]] [[825,512,838,565][11][,I,][Arial]] 5KLQRSODVW\VHSWRSODVW\RUUKLQRVHSWRSODVW\ J 9DULFRVHYHLQWUHDWPHQW K [[825,722,1080,775][11][,I,][Arial]]3OHDVHQRWH [[1080,722,1093,775][11][,I,][Arial]] [[1125,722,1560,775][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,722,1627,775][11][,I,][Arial]]QRW [[1625,722,1638,775][11][,I,][Arial]] [[1638,722,2317,775][11][,I,][Arial]]UHTXLUHGIRUVWULSSLQJDQGOLJDWLRQ [[1125,775,1478,828][11][,I,][Arial]]RIYDULFRVHYHLQV [[1479,775,1492,828][11][,I,][Arial]] [[825,828,838,881][11][,I,][Arial]] :HLJKWUHGXFWLRQVXUJHU\ L +RPH+HDOWK&DUH +RVSLFHFDUH 1RQ(PHUJHQF\+RVSLWDO$GPLVVLRQV ,QFOXGLQJDGPLVVLRQVIRUPHQWDOKHDOWK FKHPLFDOGHSHQGHQF\RUPHGLFDOSURFHGXUHV [[675,1302,930,1355][11][,I,][Arial]]3OHDVHQRWH [[930,1302,943,1355][11][,I,][Arial]] [[975,1302,1410,1355][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1411,1302,1477,1355][11][,I,][Arial]]QRW [[1475,1302,1488,1355][11][,I,][Arial]] [[1488,1302,2267,1355][11][,I,][Arial]]UHTXLUHGIRUHPHUJHQF\DGPLVVLRQVWR [[975,1355,2197,1408][11][,I,][Arial]]WKH+RVSLWDOKRZHYHUWKH0HPEHUVKRXOGQRWLI\WKH&ODLPV [[974,1408,1632,1461][11][,I,][Arial]]$GPLQLVWUDWRUZLWKLQKRXUVDIW [[1631,1408,2267,1461][11][,I,][Arial]]HUWKHDGPLVVLRQRUDVVRRQDV [[975,1460,1405,1513][11][,I,][Arial]]UHDVRQDEO\SRVVLEOH [[1406,1460,1419,1513][11][,I,][Arial]] [[225,1513,238,1566][11][,I,][Arial]] 3K\VLFDOWKHUDS\RFFXSDWLRQDOWKHUDS\DQGVSHHFKWKHUDS\ D )RU0HPEHUV 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]&ODLPDQG [[524,1144,927,1197][11][,I,][Arial]]$SSHDO3URFHGXUHV [[928,1144,2316,1196][11][,,][Arial]]VHFWLRQ WRWKLV3ODQIRUUHLPEXUVHPHQW,IWKH3UHVFULSWLRQ'UXJLVD &RYHUHG6HUYLFHWKH0HPEHUZLOOEHUHVSRQVLEOHIRUDQ\FKDUJHVDERYHWKH$OORZHG &KDUJHLQDGGLWLRQWRWKH&RVW6KDULQJ$PRXQW 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V &XVWRPHU6HUYLFH'HSDUWPHQWDW&KRLFHRI+HDOWKFDUH3URYLGHU 7KH0HPEHUZLOOKDYHIUHHFKRLFHRIDQ\OHJDOO\TXDOLILHG+HDOWKFDUH3URYLGHUDQGWKH +HDOWKFDUH3URYLGHUSDWLHQWUHODWLRQVKLSZLOOEHPDLQWDLQHG 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21,; 6&+('8/(2)%(1(),76 &RVW6KDULQJDQG%HQHILWV 7KLV[[475,617,895,670][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[895,617,908,669][11][,,][Arial]] [[908,617,2331,669][11][,,][Arial]]VHFWLRQGHWDLOVWKH&RYHUHG6HUYLFHVDQGUHODWHGFRVWVWRWKH0HPEH U XQGHUWKLV3ODQ7KH0HPEHUZLOOJHQHUDOO\SD\D&RVW6KDULQJ$PRXQWIRU&RYHUHG6HUYLFHV 7KLV[[475,775,895,828][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[895,775,908,827][11][,,][Arial]] [[908,775,2225,827][11][,,][Arial]]VHFWLRQLVOLPLWHGE\WKHH[SUHVVH[FOXVLRQVDQGOLPLWDWLRQVVHWRX [[2226,775,2300,827][11][,,][Arial]]WLQ WKH[[452,828,671,881][11][,I,][Arial]]([FOXVLRQV [[671,828,684,880][11][,,][Arial]] [[684,828,841,880][11][,,][Arial]]VHFWLRQ [[841,828,854,880][11][,,][Arial]] 6RPH&RYHUHG6HUYLFHVDUHVXEMHFWWR3ULRU$XWKRUL]DWLRQUHTXLUHPHQWVDVLQGLFDWHGLQWKH [[375,986,857,1039][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[854,986,867,1038][11][,,][Arial]] [[867,986,1437,1038][11][,,][Arial]]VHFWLRQ3OHDVHUHIHUWRWKH [[1438,986,1919,1039][11][,I,][Arial ]]8WLOL]DWLRQ0DQDJHPHQW [[1917,986,1930,1038][11][,,][Arial]] [[1930,986,2153,1038][11][,,][Arial]]VHFWLRQIRU LQIRUPDWLRQUHJDUGLQJ3ULRU$XWKRUL]DWLRQ D /HYHORI%HQHILWV 7KH0HPEHULVUHVSRQVLEOHIRUWKHGLIIHUHQFHEHWZHHQ8VXDODQG&XVWRPDU\5DWHVDQG ELOOHGFKDUJHVZKHQHYHU&RYHUHG6HUYLFHVDUHSURYLGHGE\DQ2XWRI1HWZRUN+HDOWKFDUH 3URYLGHU E 'HGXFWLEOHV ,Q1HWZRUNDQG2XWRI1HWZRUN 'HGXFWLEOHSHU0HPEHU SHU)DPLO\ ,IWKH)DPLO\'HGXFWLEOHOLPLWDVVKRZQDERYHLVLQFXUUHGE\FRYHUHG)DPLO\0HPEHUV GXULQJWKH&RYHUDJH<HDUQRIXUWKHU'HGXFWLEOHVZLOOEHUHTXLUHGRQDQ\)DPLO\ 0HPEHUVIRUWKHUHVWRIWKH\HDU 1RFRYHUHG0HPEHUZLOOHYHUPHHWPRUHWKDQWKH³SHU0HPEHU´OLPLW F $QQXDO2XWRI3RFNHW0D[LPXPV ,Q1HWZRUNDQG2XWRI1HWZRUN $QQXDO2XWRI3RFNHW0D[LPXPSHU0HPEHU 0HGLFDODQG3UHVFULSWLRQ'UXJV SHU)DPLO\ x 7KH$QQXDO2XWRI3RFNHW0D[LPXPGRHVQRWLQFOXGHFKDUJHVWKDWDUHQRW&RYHUHG 6HUYLFHVXQGHUWKLV3ODQ HJFKDUJHVZKLFKH[FHHG8VXDODQG&XVWRPDU\5DWHVDQGFRVWV SDLGE\WKH0HPEHUDVDUHVXOWRIWKH0HPEHU¶VIDLOXUHWRFRPSO\ZLWK3ULRU$XWKRUL]DWL RQRU 5HIHUUDOUHTXLUHPHQWV DQGFKDUJHVLQH[FHVVRI3ODQPD[LPXPV x 1RFRYHUHG0HPEHUZLOOHYHUPHHWPRUHWKDQWKH³SHU0HPEHU´RXWRISRFNHWOLPLW x 0D[LPXP%HQHILWV3DLGE\WKLV3ODQIRU&HUWDLQ&RYHUHG6HUYLFHV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 7KLV3ODQKDVHVWDEOLVKHGOLPLWVRQWKHDPRXQWRIEHQHILWVLWZLOOSD\IRUFHUWDLQ&RYHUHG 6HUYLFHV7KHVHVSHFLILFVHUYLFHVDQGWKHLUDSSOLFDEOHOLPLWVDUHLGHQWLILHGLQWKLV[[2099,353,2302,406][11][,I,][Arial]]6FKHGXOH [[450,406,667,459][11][,I,][Arial]]RI%HQHILWV [[667,406,680,458][11][,,][Arial]] [[680,406,863,458][11][,,][Arial]]VHFWLRQ [[863,406,876,458][11][,,][Arial]] x 0D[LPXP$QQXDO%HQHILW3DLGE\WKLV3ODQ 7RWKHH[WH QWD0HPEHU¶VEHQHILWVSDLGH[FHHGWKH0D[LPXP$QQXDO%HQHILWEHQHILWVSDLG IRUWKH&RYHUDJH<HDUVKDOOEHUHYLHZHGDQGUHFRQFLOHGVXFKWKDWRQO\EHQHILWVSDLGIRU ³QRQHVVHQWLDOKHDOWKEHQHILWV´DVWKDWWHUPLVGHILQHGE\+HDOWK&DUH5HIRUPFRXQW WRZDUGVWKH0D[LPXP$QQXDO%HQHILW ,Q1HWZRUN2XWRI1HWZRUN 0D[LPXP$QQXDO%HQHILW +RVSLFH&DUHPRQWKV 0D[LPXP$QQXDO%HQHILW 6NLOOHG1XUVLQJ)DFLOLW\GD\V &RYHUHG6HUYLFHV 7KLVVHFWLRQGHVFULEHVWKH&RYHUHG6HUYLFHVIRUZKLFKEHQHILWVDUHDYDLODEOHXQGHUWKLV3ODQ VXEMHFWWRWKHGHILQLWLRQVH[FOXVLRQVFRQGLWLRQVDQGOLPLWDWLRQVRIWKLV3ODQ&RVW6KDULQJ $PRXQWV 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] D $0%8/$1&( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU $PEXODQFH&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU'HGXFWLEOH &RYHUHG6HUYLFHVLQFOXGHOLFHQVHG$PEXODQFHWUDQVSRUWDWLRQIRUDQ(PHUJHQF\WRWKHQHDUHVW +RVSLWDOTXDOLILHGWRSURYLGHFDUH &RYHUHG6HUYLFHVLQFOXGH D /LFHQVHG$PEXODQFHWUDQVSRUWDWLRQIRUDQ(PHUJHQF\WRWKHQHDUHVW+HDOWKFDUH 3URYLGHUTXDOLILHGWRSURYLGHFDUH E $LU$PEXODQFHFKDUJHVZKHQLWLVWKHRQO\0HGLFDOO\1HFHVVDU\PHDQVRIWUDQVSRUWLQJ WKH0HPEHUDVGHWHUPLQHGE\WKLV3ODQ F $PEXODQFHVHUYLFHVIRUDQ(PHUJHQF\HYHQLIWKH0HPEHULVQRWWUDQVSRUWHG ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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³5RXWLQHSDWLHQWFRVWV´LQFOXGHDO OLWHPVDQGVHUYLFHVFRQVLVWHQWZLWKWKHFRYHUDJH SURYLGHGLQWKHSODQWKDWLVW\SLFDOO\FRYHUHGIRUD0HPEHUZKRLVQRWHQUROOHGLQD FOLQLFDOWULDO5RXWLQHSDWLHQWFRVWVGRQRWLQFOXGH WKHLQYHVWLJDWLRQDOLWHPGHYLFHRU VHUYLFHLWVHOI LWHPVDQGVHUYLFHVWKDWDUHSURYLGHGVROHO\WRVDWLVI\GDWDFROOHFWLRQDQG DQDO\VLVQHHGVDQGWKDWDUHQRWXVHGLQWKHGLUHFWFOLQLFDOPDQDJHPHQWRIWKHSDWLHQW DQG DVHUYLFHWKDWLVFOHDUO\LQFRQVLVWHQWZLWKWKHZLGHO\DFFHSWHGDQGHVWDEOLVKHG VWDQGDUGVRIFDUHIRUDSDUWLFXODUGLDJQRVLV ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] F &+,5235$&7,&6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU &KLURSUDFWLF&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU'HGXFWLEOH 6HUYLFHV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,781,2242,834][11][,I,][Arial]]8WLOL]DWLRQ [[375,834,645,887][11][,I,][Arial]]0DQDJHPHQW [[643,834,656,886][11][,,][Arial]] [[656,834,1539,886][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,834,1611,887][11][,I,][Aria l]]3UH [[1611,834,1626,887][11][,I,][Arial]] [[1627,834,1933,887][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,834,1945,886][11][,,][Arial]] [[1945,834,2303,886][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,887,984,940][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,887,998,939][11][,,][Arial]] [[998,887,2106,939][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,887,2118,939][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGH&KLURSUDFWLFFDUHDVDOORZHGXQGHU6WDWHSUDFWLFHUHJXODWLRQVDUH OLPLWHGWRYLVLWVSHUSHUVRQSHU\HDU )RUFKLURSUDFWLFVHUYLFHV,Q1HWZRUNVKDOOPHDQWKH+60FKLURSUDFWLFQHWZRUN ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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x 2UDOVXUJHU\IRUWXPRUVRUF\VWVRIWKHMDZERQHRUPRXWK H[FOXGLQJUHVWRUDWLYHRURUWKRGRQWLF WUHDWPHQWWKDWPD\RUPD\QRWEHUHODWHGWRWKHWXPRURUF\VW x 5HPRYDORILPSDFWHGWHHWK &RYHUDJHIRUJHQHUDODQHVWKHVLDDQGWUHDWPHQWUHQGHUHGE\DGHQWLVWIRUDPHGLFDOFRQGLWLRQ FRYHUHGE\WKHKHDOWKSODQUHJDUGOHVVRIZKHWKHUWKHVHUYLFHVDUHSURYLGHGLQD+RVSLWDORUDGHQWDO RIILFH $QHVWKHVLDDQG+RVSLWDOFKDUJHVIRUGHQWDOFDUHSURYLGHGWRD0HPEHUZKRUHTXLUHVKRVSLWDOL]DWLRQ RUJHQHUDODQHVWKHVLDIRUGHQWDOVHUYLFHVGXHWRRQHRIWKHIROORZLQJUHDVRQV x WKH0HPEHULVD'HSHQGHQWXQGHUWKHDJHRI\HDUVRU x WKH0HPEHULVVHYHUHO\GLVDEOHGRU x WKH0HPEHUKDVDPHGLFDOFRQGLWLRQ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 0HGLFDOO\1HFHVVDU\VXUJLFDORUQRQVXUJLFDOWUHDWPHQWRIWHPSRURPDQGLEXODUGLVRUGHU 70-70' DQGFUDQLRPDQGLEXODUGLVRUGHUDUHFRYHUHGRQWKHVDPHEDVLVDV,QSDWLHQWDQG2XWSDWLHQW+RVSLWDO DQG3K\VLFLDQ6HUYLFHVLIWKHWUHDWPHQWLVDGPLQLVWHUHGRUSUHVFULEHGE\D3K\VLFLDQRU'HQWLVW 7KHIROORZLQJDUHQRW&RYHUHG6HUYLFHV x RUDOPD[LOORIDFLDOVXUJHU\ ,QFOXGLQJ/H)RUWSURFHGXUHV XQOHVVUHODWHGWRD&RYHUHG6HUYLFH GHVFULEHGDERYH x UHPRYDORIWHHWK H[FHSWUHPRYDORILPSDFWHGWHHWKLVD&RYHUHG6HUYLFH x SHULRGRQWDOWUHDWPHQW x GHQWDOVSOLQWV H[FHSWIRUWKHWUHDWPHQWRIWHPSRURPDQGLEXODUGLVRUGHURUFUDQLRPDQGLEXODU GLVRUGHU ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHVDERYH8VXDO DQG&XVWRPDU\5DWHV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H '85$%/(0(',&$/(48,30(1735267+(7,&6257+27,&6$1'',6326$%/( 6833/,(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 'XUDEOH0HGLFDO&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU (TXLSPHQW'HGXFWLEOH 3URVWKHWLFV2UWKRWLFV DQG'LVSRVDEOH 6XSSOLHV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,1045,2242,1098][11][,I,][Arial]]8WLOL]DWLRQ [[375,1098,645,1151][11][,I,][Arial]]0DQDJHPHQW [[643,1098,656,1150][11][,,][Arial]] [[656,1098,1539,1150][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,1098,1611,1151][11][, I,][Arial]]3UH [[1611,1098,1626,1151][11][,I,][Arial]] [[1627,1098,1933,1151][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,1098,1945,1150][11][,,][Arial]] [[1945,1098,2303,1150][11][,,][Arial]]VXEVHFWLRQ RIWKH [[375,1150,984,1203][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1150,998,1202][11][,,][Arial]] [[998,1150,2106,1202][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,1150,2118,1202][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHWKHIROORZLQJW\SHVRI0HGLFDOO\1HFHVVDU\'XUDEOH0HGLFDO (TXLSPHQW3URVWKHWLFV2UWKRWLFVDQG'LVSRVDEOH6XSSOLHVEXWRQO\LISUHVFULEHGE\D +HDOWKFDUH3URYLGHUIRUXVHRXWVLGHRID+RVSLWDORU6NLOOHG1XUVLQJ)DFLOLW\ x 'XUDEOH0HGLFDO(TXLSPHQW +RPHUHQDOGLDO\VLVHTXLSPHQWDQGVXSSOLHV (TXLSPHQWQHFHVVDU\WRWUHDWUHVSLUDWRU\IDLOXUH )RULQVXOLQWUHDWHGGLDEHWLF0HPEHUVLQVXOLQSXPSVDQGEORRGJOXFRVH PRQLWRULQJGHYLFHV EORRGJOXFRVHPRQLWRULQJGHYLFHVPXVWEHSXUFKDVHGDWDQ ,Q1HWZRUNSKDUPDF\±VHHWKH[[1325,1891,1567,1944][11][,I,][Arial]]3UHVFULSWLRQ [[1567,1891,1580,1943][11][,,][Arial]] [[1580,1891,1702,1944][11][,I,][Arial]]'UXJV [[1702,1891,1715,1943][11][,,][A rial]] [[1715,1891,2081,1943][11][,,][Arial]]VXEVHFWLRQRIWKLV [[2082,1891,2336,1944][11][,I,][Arial]]6FKHGXOHRI [[675,1944,841,1997][11][,I,][Arial]]%HQHILWV [[841,1944,854,1996][11][,,][Arial]] [[854,1944,1013,1996][11][,,][Arial]]VHFWLRQ [[1014,1944,1027,1996][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VRZQ'XUDEOH 0HGLFDO(TXLSPHQWLVEHLQJUHSDLUHGLVD&RYHUHG6HUYLFH 5HSODFHPHQWRI'XUDEOH0HGLFDO(TXLSPHQW 'XUDEOH0HGLFDO(TXLSPHQWWKDWD0HPEHURZQVLVSXUFKDVLQJRUUHQWLQJPD\EHUHSODFHGLQ WKHHYHQWRIORVVLUUHSDUDEOHGDPDJH GXHWRDFFLGHQWRUQDWXUDOGLVDVWHU RULUUHSDUDEOHZHDU LHGHWHULRUDWLRQGXHWRXVDJHRYHUWLPHQRWGXHWRDVSHFLILFHYHQW RUZKHQUHTXLUHG EHFDXVHRIDFKDQJHLQWKH0HPEHU¶VPHGLFDOFRQGLWLRQRUWRDFFRPPRGDWHERGLO\JURZWK 5HSODFHPHQWRI'XUDEOH0HGLFDO(TXLSPHQWGXHWRLUUHSDUDEOHZHDULVQRWD&RYHUHG6HUYLFH GXULQJWKHUHDVRQDEOHXVHIXOOLIHWLPHRIWKH'XUDEOH0HGLFDO(TXLSPHQWKRZHYHUUHSDLUFRVWV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] XSWRWKHHVWLPDWHGFRVWRIUHSODFHPHQWRIVXFKHTXLSPHQWPD\EHD&RYHUHG6HUYLFH7KLV SODQUHVHUYHVWKHULJKWWRUHHYDOXDWH0HGLFDO1HFHVVLW\RI'XUDEOH0HGLFDO(TXLSPHQW DVVRFLDWHGZLWKDUHTXHVWIRUUHSODFHPHQWRIVXFKHTXLSPHQW ,QSDWLHQW'XUDEOH0HGLFDO(TXLSPHQW3URVWKHWLFV2UWKRWLFVDQG'LVSRVDEOH6XSSOLHVDUH FRYHUHGXQGHU[[681,564,1836,617][11][,I,][Arial]],QSDWLHQWDQG2XWSDWLHQW+RVSLWDODQG3K\VLFLDQ6HUYLFHV [[1836,564,1849,616][11][,,][Arial]] [[1848,564,1861,616][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V&XVWRPHU6HUYLFH 'HSDUWPHQWDWWKHQXPEHUOLVWHGLQWKH[[1168,2158,1407,2211][11][,I,][Arial]],QWURGXFWLRQ [[1407,2158,1420,2210][11][,,][Arial]] [[1420,2158,1590,2210][11][,,][Arial]]VHFWLRQ ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVH[FHSW&RQYHQLHQFH&DUH&OLQLFVZKHQUHFHLYLQJ&RYHUHG 6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] J +20(+($/7+&$5( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU +RPH+HDOWK&DUH&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,887,2242,940][11][,I,][Arial]]8WLOL]DWLRQ [[375,939,645,992][11][,I,][Arial]]0DQDJHPHQW [[643,939,656,991][11][,,][Arial]] [[656,939,1539,991][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,939,1611,992][11][,I,][Aria l]]3UH [[1611,939,1626,992][11][,I,][Arial]] [[1627,939,1933,992][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,939,1945,991][11][,,][Arial]] [[1945,939,2241,991][11][,,][Arial]]VXEVHFWLRQRIW [[2241,939,2304,991][11][,,][Arial]]KH [[375,992,984,1045][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,992,998,1044][11][,,][Arial]] [[998,992,2106,1044][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,992,2118,1044][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHWKHIROORZLQJ3DUW7LPH&DUHRU,QWHUPLWWHQW&DUHDQGWKHUDSHXWLF VHUYLFHVIRUFRQGLWLRQVWKDWZRXOGRWKHUZLVHUHTXLUH&RQILQHPHQWLQD+RVSLWDORU6NLOOHG 1XUVLQJ)DFLOLW\ZKHQUHQGHUHGLQWKH0HPEHU¶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¶VKRXVHKROGRULVUHODWHG E\EORRGRUODZ WRWKH0HPEHU %HQHILWVDOVRDUHQRWDYDLODEOHIRUWKHDERYHVHUYLFHVSURYLGHGDWDVFKRRORUDQ\VLWHRWKHUWKDQ WKH0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] SHUVRQWRSURYLGHDQRQVNLOOHGVHUYLFHVKDOOQRWPDNHLWDVNLOOHGVHUYLFHZKHQDVNLOOHGQXUVH SURYLGHVLW2QO\WKH6NLOOHG&DUHFRPSRQHQWVRIVRFDOOHG³EOHQGHG´VHUYLFHV LHVHUYLFHV ZKLFKLQFOXGHVNLOOHGDQGQRQVNLOOHGFRPSRQHQWV DUHFRYHUHGXQGHUWKLV3ODQ ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] K +263,&(&$5( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU +RVSLFH&DUH&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,887,2242,940][11][,I,][Arial]]8WLOL]DWLRQ [[375,939,645,992][11][,I,][Arial]]0DQDJHPHQW [[643,939,656,991][11][,,][Arial]] [[656,939,1539,991][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,939,1611,992][11][,I,][Aria l]]3UH [[1611,939,1626,992][11][,I,][Arial]] [[1627,939,1933,992][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,939,1945,991][11][,,][Arial]] [[1945,939,2303,991][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,992,984,1045][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,992,998,1044][11][,,][Arial]] [[998,992,1747,1044][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3 [[1747,992,2105,1044][1 1][,,][Arial]]ULRU$XWKRUL]DWLRQ [[2105,992,2118,1044][11][,,][Arial]] &RYHUHG6HUYLFHVDUHGHVFULEHGEHORZIRU0HPEHUVZKRDUHWHUPLQDOO\LOODQGDFFHSWHGDV +RVSLFHSURJUDPSDUWLFLSDQWVXSWRDQDQQXDOPD[LPXPRIVL[PRQWKV0HPEHUVPXVWPHHW WKHHOLJLELOLW\UHTXLUHPHQWVRIWKHSURJUDPDQGHOHFWWRUHFHLYHVHUYLFHVWKURXJKWKH+RVSLFH SURJUDP6HUYLFHVZLOOEHSURYLGHGLQWKH0HPEHU¶VKRPHRU+RVSLFHIDFLOLW\ZLWKLQSDWLHQWFDUH DYDLODEOHZKHQ0HGLFDOO\1HFHVVDU\0HPEHUVZKRHOHFWWRUHFHLYH+RVSLFHVHUYLFHVGRVRLQ OLHXRIFXUDWLYHWUHDWPHQWIRUWKHLUWHUPLQDO,OOQHVVIRUWKHSHULRGWKH\DUHHQUROOHGLQWKH+RVSLFH SURJUDP &RYHUHG6HUYLFHV,QFOXGH D 3DUW7LPH&DUHSURYLGHGLQWKH0HPEHU¶VKRPHRU+RVSLFHIDFLOLW\E\DQLQWHUGLVFLSOLQDU\ +RVSLFHWHDP E &RQWLQXHG&DUHLQWKH0HPEHU¶VKRPHRU+RVSLFHIDFLOLW\LQDVHWWLQJZKLFKSURYLGHVGD\ FDUHIRUSDLQRUV\PSWRPPDQDJHPHQW F ,QSDWLHQWFDUHZKHQDSSURSULDWH ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] L ,1)(57,/,7<6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU ,QIHUWLOLW\6HUYLFHV&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,834,2242,887][11][,I,][Arial]]8WLOL]DWLRQ [[375,887,645,940][11][,I,][Arial]]0DQDJHPHQW [[643,887,656,939][11][,,][Arial]] [[656,887,1539,939][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,887,1611,940][11][,I,][Aria l]]3UH [[1611,887,1626,940][11][,I,][Arial]] [[1627,887,1933,940][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,887,1945,939][11][,,][Arial]] [[1945,887,2303,939][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,939,984,992][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,939,998,991][11][,,][Arial]] [[998,939,1747,991][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3 [[1747,939,2105,991][11][, ,][Arial]]ULRU$XWKRUL]DWLRQ [[2105,939,2118,991][11][,,][Arial]] ,QIHUWLOLW\&RYHUHG6HUYLFHVDUHYHU\OLPLWHGDQGRQO\,QFOXGHWKHIROORZLQJ D ,QLWLDOH[DPLQDWLRQUHTXLUHGWRGLDJQRVHLQIHUWLOLW\ E 'LDJQRVWLFWHVWVWRGHWHUPLQHGLDJQRVLVRILQIHUWLOLW\ 7KHUHLVQRFRYHUDJHIRUVHUYLFHVEH\RQGWKHLQLWLDOH[DPLQDWLRQDQGGLDJQRVWLFWHVWRUWHVWLQJ RQFHLQIHUWLOLW\WUHDWPHQWEHJLQV ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]8WLOL]DWLRQ [[375,1260,645,1313][11][,I,][Arial]]0DQDJHPHQW [[643,1260,656,1312][11][,,][Arial]] [[656,1260,1539,1312][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,1260,1611,1313][11][, I,][Arial]]3UH [[1611,1260,1626,1313][11][,I,][Arial]] [[1627,1260,1933,1313][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,1260,1945,1312][11][,,][Arial]] [[1945,1260,2303,1312][11][,,][Arial]]VXEVHFWLRQ RIWKH [[375,1313,984,1366][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1313,998,1365][11][,,][Arial]] [[998,1313,1082,1365][11][,,][Arial]]VHFW [[1082,1313,2105,1365][11][,,][Arial]]LRQIRUGHWDLOV RQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,1313,2118,1365][11][,,][Arial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rial]]2XWSDWLHQW3UHVFULSWLRQ'UXJV [[1942,2736,1955,2788][11][,,][Arial]] [[1955,2736,2321,2788][11][,,][Arial]]VXEV HFWLRQRIWKLV [[375,2788,796,2841][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[796,2788,809,2840][11][,,][Arial]] [[809,2788,1117,2840][11][,,][Arial]]VHFWLRQ ELRORJ [[1117,2788,1287,2840][11][,,][Arial]]LFDODQG [[1288,2788,1314,2840][11][,,][Arial]]G [[1313,2788,1519,2840][11][,,][Arial]]LVSRVDEOH [[1520,2788,1543,2840][11][,,][Arial]]V [[1543,2788,1803,2840][11][,,][Arial]]XSSOLHVIRULQ [[1803,2788,1818,2840][11][,,][Arial]] [[1818,2788,2131,2840][11][,,][Arial]]+RVSLWDOXVHLQ [[2131,2788,2146,2840][11][,,][Arial]] [[2147,2788,2324,2840][11][,,][Arial]]+RVSLWDO XVHRIPHGLFDOHTXLSPHQWUHQDOGLDO\VLVHOHFWURFRQYXOVLYHWKHUDS\DQGSDWLHQWHGXFDWLRQ (PHUJHQF\URRPDQGXUJHQWFDUHVHUYLFHVLQSDWLHQWPDWHUQLW\VHUYLFHVWUDQVSODQWVHUYLFHV DQGGHQWDOVHUYLFHVDUHGHVFULEHGHOVHZKHUHLQWKLV[[1428,2999,1849,3052][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1848,2999,1861,3051][11][,,][Arial]] [[1861,2999,2019,3051][11][,,][Arial]]VHFWLRQ [[2019,2999,2032,3051][11][,,][Arial]] 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] S 5HFRQVWUXFWLYHRUFRVPHWLFVXUJHU\LQFLGHQWDOWRRUIROORZLQJVXUJHU\UHVXOWLQJIURP,QMXU\ RU,OOQHVVRIWKHLQYROYHGSDUW T 6XUJHU\IRUD0HPEHUXSWRDJHQLQHWHHQ IRUWKHWUHDWPHQWRIDFRQJHQLWDOGLVHDVH RUDQRPDO\WKDWKDVUHVXOWHGLQDIXQFWLRQDOGHIHFW DVGHWHUPLQHGE\WKHDWWHQGLQJ 3K\VLFLDQ LVDOVRFRYHUHGDVUHFRQVWUXFWLYHVXUJHU\ ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] N 0$7(51,7< 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU 0DWHUQLW\&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU'HGXFWLEOH 0DWHUQLW\&RYHUHG6HUYLFHV,QFOXGH D 5RXWLQHSUHQDWDODQGSRVWQDWDOYLVLWVDUHDGGUHVVHGLQWKH[[1708,887,1936,940][11][,I,][Arial]]3UHYHQWLYH [[1938,887,2037,940][11][,I,][Arial]]&DUH [[2036,887,2049,939][11][,,][Arial]] [[2049,887,2206,939][11][,,][Arial]]VHFWLRQ [[2207,887,2220,939][11][,,][Arial]] ,IWKH0HPEHUPRWKHULVLOOVXIIHUVDQ,QMXU\RUUHTXLUHVFDUHRWKHUWKDQURXWLQH FDUHEHQHILWVZLOOEHSURYLGHGRQWKHVDPHEDVLVDVIRUDQ\RWKHU&RYHUHG 6HUYLFHSURYLGHGFRYHUDJHLVLQHIIHFW E ,QSDWLHQWPDWHUQLW\VHUYLFHV,QFOXGLQJWKH0HPEHUPRWKHU¶VGHOLYHU\ F 7KHIROORZLQJEHQHILWVDUHDYDLODEOHIRUWKHQHZERUQ0HPEHUIURPWKHPRPHQWRIELUWK DVORQJDVWKHQHZERUQLVWLPHO\HQUROOHGLQDFFRUGDQFHZLWKWKH[[1836,1361,2116,1414][11][,I,][Arial]](OLJLELOLW\DQG [[525,1414,778,1467][11][,I,][Arial]]3DUWLFLSDWLRQ [[778,1414,791,1466][11][,,][Arial]] [[791,1414,936,1466][11][,,][Arial]]VHFWLRQ [[936,1414,949,1466][11][,,][Arial]] [[948,1414,961,1466][11][,,] [Arial]] 5RXWLQH+RVSLWDOQXUVHU\H[SHQVHV,QFOXGLQJ D (OHFWLYHFLUFXPFLVLRQ E 5RXWLQHSHGLDWULFFDUHIRUDKHDOWK\QHZERUQFKLOGZKLOHFRQILQHGLQWKH +RVSLWDOLPPHGLDWHO\IROORZLQJELUWK,QFOXGLQJQHZERUQKHDULQJH[DPV ,IWKHEDE\LVLOOVXIIHUVDQ,QMXU\SUHPDWXUHELUWKFRQJHQLWDODEQRUPDOLW\RU UHTXLUHVFDUHRWKHUWKDQURXWLQHFDUHEHQHILWVZLOOEHSURYLGHGRQWKHVDPHEDVLV DVIRUDQ\RWKHU&RYHUHG6HUYLFHSURYLGHGFRYHUDJHLVLQHIIHFW *URXSKHDOWKSODQVJHQHUDOO\PD\QRWXQGHUWKH1HZERUQV¶DQG0RWKHUV¶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¶V&XVWRPHU6HUYLFH'HSDUWPHQWDWWKHQXPEHUOLVWHGLQWKH [[375,2837,615,2890][11][,I,][Arial]],QWURGXFWLRQ [[615,2837,628,2889][11][,,][Arial]] [[628,2837,798,2889][11][,,][Arial]]VHFWLRQ [[798,2837,811,2889][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] O 0(17$/+($/7+$1'&+(0,&$/'(3(1'(1&<6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 0HQWDO+HDOWK±&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 2XWSDWLHQW'HGXFWLEOH 0HQWDO+HDOWK&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU ,QSDWLHQW'HGXFWLEOH &KHPLFDO'HSHQGHQF\&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU ±2XWSDWLHQW'HGXFWLEOH &KHPLFDO'HSHQGHQF\&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU ,QSDWLHQW'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,1578,2242,1631][11][,I,][Arial]]8WLOL]DWLRQ [[375,1631,645,1684][11][,I,][Arial]]0DQDJHPHQW [[643,1631,656,1683][11][,,][Arial]] [[656,1631,1539,1683][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,1631,1611,1684][11][, I,][Arial]]3UH [[1611,1631,1626,1684][11][,I,][Arial]] [[1627,1631,1933,1684][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,1631,1945,1683][11][,,][Arial]] [[1945,1631,2215,1683][11][,,][Arial]]VXEVHFWLRQ RI [[2215,1631,2228,1683][11][,,][Arial]] [[2228,1631,2304,1683][11][,,][Arial]]WKH [[375,1684,984,1737][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1684,998,1736][11][,,][Arial]] [[998,1684,2106,1736][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,1684,2118,1736][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] P 2873$7,(17',$*1267,&7(676 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 05,&7 3(76FDQV&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 'HGXFWLEOH 2WKHU'LDJQRVWLF&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 7HVWV'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,1100,2242,1153][11][,I,][Arial]]8WLOL]DWLRQ [[375,1152,645,1205][11][,I,][Arial]]0DQDJHPHQW [[643,1152,656,1204][11][,,][Arial]] [[656,1152,2316,1204][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHVDQGGHWDLOVRQKRZWRREWDLQ3ULRU$XWK RUL]DWLRQ [[2317,1152,2330,1204][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHWKHIROORZLQJWHVWVSURYLGHGUHTXHVWHGRUGLUHFWHGE\3K\VLFLDQVRU RWKHU+HDOWKFDUH3URYLGHUV x 'LDJQRVWLFODEVHUYLFHV x 'LDJQRVWLFLPDJLQJ 05,V&7VFDQV3(7VFDQVDQG[UD\V 2XWSDWLHQWGLDJQRVWLFWHVWVSHUIRUPHGLQFRQMXQFWLRQZLWKDURXWLQHSHULRGLFSUHYHQWLYHH[DPDQ RIILFHYLVLW(PHUJHQF\URRPYLVLWRU8UJHQW&DUHYLVLWDUHFRYHUHGLQWKHRWKHUVXEVHFWLRQVRI WKLV[[460,1738,880,1791][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[880,1738,893,1790][11][,,][Arial]] [[893,1738,1050,1790][11][,,][Arial]]VHFWLRQ [[1050,1738,1063,1790][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]3UH [[1984,2109,1999,2162][11][,I,][Arial]] [[1999,2109,2305,2162][11][,I,][Aria l]]6HUYLFH&ODLPV [[2305,2109,2318,2161][11][,,][Arial]] VXEVHFWLRQRIWKH[[735,2162,1343,2215][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[1344,2162,1357,2214][11][,,][Arial]] [[1356,2162,2183,2214][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ 3ULRU $XWKRUL]DWLRQ D $QWLREHVLW\GUXJV HJ;HQLFDO3KHQWHUPLQH $QWLREHVLW\GUXJVDUHRQO\FRYHUHG ZKHQDSUHVFULEHUVWDWHVWKHSDWLHQWLVPRUELGO\REHVHDQGLGHQWLILHVZKLFKERGLO\RUJDQV DQGIXQFWLRQVDUHIDLOLQJ E %LRORJLFDODQWLSVRULDWLFDQWLUKHXPDWLFPHGLFDWLRQV HJ&LP]LD(QEUHO+XPLUD .LQHUHW2UHQFLD$PHYLYH6LPSRQL6WHODUD F &2;LQKLELWRUV HJ&HOHEUH[ G *URZWKKRUPRQHV HJ*HQRWURSLQ+XPDWURSLQ H 0HPDQWLQH([WHQGHG5HOHDVH 1DPHQGD I 2PDOL]XPDE ;RODLU 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] J &DUGLRYDVFXODUPHGLFDWLRQV HJ$GYLFRU(IILHQW K $QWLVSDVPRWLFV HJ[[WURO [[1134,459,1342,511][11][,,][Arial]]6DQFWXUD [[1343,459,1821,511][11][,,][Arial]]6DQFWXUD;59HVLFDUH [[1822,459,1835,511][11][,,][Arial]] L 7UHWLQRLQ HJ5HWLQ$$YLWD IRU0HPEHUVRYHUDJHWZHQW\VL[ M $QWLPLFURELDOV HJ&D\VWRQ'LILFLG0RQXURO=\YR[ N 'LDEHWHVPHGLFDWLRQV HJ%\GXUHRQ%\HWWD9LFWR]D,QYRNDQD)DU[LJD O (UHFWLOHG\VIXQFWLRQPHGLFDWLRQV(UHFWLOHG\VIXQFWLRQ0HGLFDWLRQVDUHQRWFRYHUHGIRU HUHFWLOHG\VIXQFWLRQXQOHVVLWLVIURPDQRUJDQLFFDXVH $WDQ\WLPHWKLV3ODQPD\LPSOHPHQWHOHFWURQLFDSSURYDOFULWHULDRU3ULRU$XWKRUL]DWLRQRQ DGGLWLRQDO3UHVFULSWLRQ'UXJV$0HPEHUPD\FDOOWKH&ODLPV$GPLQLVWUDWRU¶V&XVWRPHU6HUYLFH 'HSDUWPHQWDWWKHQXPEHUOLVWHGLQWKH[[1168,1197,1407,1250][11][,I,][Arial]],QWURGXFWLRQ [[1407,1197,1420,1249][11][,,][Arial]] [[1420,1197,2263,1249][11][,,][Arial]]VHFWLRQZLWKTXHVWLRQVUHJDUGL QJZKHWKHU [[2264,1197,2301,1249][11][,,][Arial]]D SDUWLFXODU3UHVFULSWLRQ'UXJUHTXLUHV3ULRU$XWKRUL]DWLRQRUPD\UHTXHVWDOLVWLQJRIWKH 3UHVFULSWLRQ'UXJVWKDWUHTXLUH3ULRU$XWKRUL]DWLRQZKLFKLVDYDLODEOHDWQRFKDUJH 'LVSHQVLQJ/LPLWDWLRQV 7KLV3ODQPD\LPSRVHGLVSHQVLQJOLPLWDWLRQVRQWKHTXDQWLW\FRYHUHGSHU&RSD\PHQWIRUVSHFLILF GUXJSURGXFWVEHFDXVHRIWKHPDQXIDFWXUHU¶VSDFNDJLQJV\VWHPVRUDVGLFWDWHGE\PHGLFDOO\ DSSURSULDWHFOLQLFDOXVH 0HPEHUVKLS&DUGV 7KH0HPEHUVKLS&DUGDOVRIXQFWLRQVDVD3UHVFULSWLRQ'UXJFDUG7KH0HPEHUVKLS&DUGDQG DVVRFLDWHGEHQHILWVZLOORQO\EHUHFRJQL]HGDW,Q1HWZRUNSKDUPDFLHV :KHQD0HPEHUKDVDSUHVFULSWLRQIURPD+HDOWKFDUH3URYLGHUIRUD3UHVFULSWLRQ'UXJWKH 0HPEHUVKRXOGWDNHWKHSUHVFULSWLRQWRDQ,Q1HWZRUNSKDUPDF\DQGSUHVHQWWKHSUHVFULSWLRQ DQGKLVKHU0HPEHUVKLS&DUGWRWKHSKDUPDF\*HQHUDOO\WKH,Q1HWZRUNSKDUPDF\ZLOOILOOWKH SUHVFULSWLRQDQGFROOHFWD&RVW6KDULQJ$PRXQWIURPWKH&ODLPDQW[[1744,2093,2240,2146][11][,I,][Arial]]7KLVLVQRWFRQVLGHUHGD [[375,2145,940,2198][11][,I,][Arial]]FODLPIRUEHQHILWVXQGHUWKH [[941,2145,1097,2197][11][,,][Arial]]0HGLFDO [[1098,2145,1111,2198][11][,I,][Arial]] [[1111,2145,1202,2198][11][,I,][Arial]]3ODQ [[1203,2145,1241,2197][11][,,][Arial]] [[1242,2145,1255,2197][11][,,][Arial]] 2XWRI1HWZRUN 3UHVFULSWLRQ'UXJVGLVSHQVHGE\2XWRI1HWZRUNSKDUPDFLHVDUHFRYHUHGEXWLQDGGLWLRQWR &RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHVDERYH8VXDODQG &XVWRPDU\5DWHV ,ID&ODLPDQWQHHGVD3UHVFULSWLRQ'UXJDQGDQ,Q1HWZRUNSKDUPDF\LVQRWDYDLODEOHWKH &ODLPDQWVKRXOGWDNHWKHSUHVFULSWLRQWRDQ2XWRI1HWZRUNSKDUPDF\DQGSD\WKHDPRXQW UHTXHVWHGE\WKH2XWRI1HWZRUNSKDUPDF\[[1267,2620,1280,2673][11][,I,][Arial]] [[1280,2620,1293,2673][11][,I,][Arial]] [[375,2725,1424,2778][11][,I,][Arial]]7KLVLVQRWFRQVLGHUHGDFODLPIRUEHQHILWVXQGHUWKH [[1425,2725,1438,2777][11][,,][Arial]] [[1438,2725,1594,2777][11][,,][Arial]]0HGLFDO [[1595,2725,1608,2778 ][11][,I,][Arial]] [[1608,2725,1725,2778][11][,I,][Arial]]3ODQ [[1726,2725,1739,2777][11][,,][Arial]] [[1739,2725,1909,2777][11][,,][Arial]]6HHWKH [[1910,2725,2314,2778][11][,I,][Arial]]0HGLFDO 3ODQ&ODLP [[375,2778,854,2831][11][,I,][Arial]]DQG$SSHDO3URFHGXUHV [[855,2778,868,2830][11][,,][Arial]] [[867,2778,2280,2830][11][,,][Arial]]VHFWLRQIRULQIRUPDWLRQUHJDUGLQJKRZWRILOHD3UHVFULSWLRQ'UXJ FODLP XQGHUWKH0HGLFDO3ODQ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] R 35(9(17,9(&$5( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 3UHYHQWLYH&DUH&RLQVXUDQFH±QR'HGXFWLEOH&RLQVXUDQFH±QR 'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,834,2242,887][11][,I,][Arial]]8WLOL]DWLRQ [[375,887,645,940][11][,I,][Arial]]0DQDJHPHQW [[643,887,656,939][11][,,][Arial]] [[656,887,1539,939][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,887,1611,940][11][,I,][Aria l]]3UH [[1611,887,1626,940][11][,I,][Arial]] [[1627,887,1933,940][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,887,1945,939][11][,,][Arial]] [[1945,887,2303,939][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,939,984,992][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,939,998,991][11][,,][Arial]] [[998,939,1354,991][11][,,][Arial]]VHFWLRQIRUGHWDLOV [[1354,939,1367,991][11][,,][Arial]] [[1367,939,2106,991][11][,,][Arial]]RQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,939,2118,991][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3UHYHQWLYH&DUH6HUYLFHV $*(6 [[934,321,945,365][9][,I,][Arial]] [[394,386,536,427][9][,I,][Arial]]&RYHUHG [[538,386,2147,427][9][,I,][Arial]]SUHYHQWLYHFDUHVHUYLFHVDUHOLPLWHGWRRQFHSHUPHPEHUSHUFRYHUDJH\HDUXQOHVVRWKHUZLVHLQGLFDWHG $OO0HPEHUV!! ȱȱȱȱȱȱȱȱȱȱȱȱ \ONHWRQXULD 3.8 RQFHDWELUWK; (YRNHGRWRDFRXVWLFHPLVVLRQV (2$( ; RQFHDWELUWK 3URSK\ODFWLFH\HPHGLFDWLRQIRU; JRQRUUKHDRQFHDWELUWK &RQJHQLWDOK\SRWK\URLGLVPVFUHHQLQJ±; RQHWLPHRQO\EHWZHHQELUWKDQG\HDU 6LFNOHFHOOGLVHDVHVFUHHQLQJ±RQHWLPH; RQO\EHWZHHQELUWKDQG\HDU ,URQVXSSOHPHQWV±EHWZHHQ; PRQWKV $XWLVPVFUHHQLQJ;; 'HYHORSPHQWDOVFUHHQLQJ±XSWRIRXU;;; VFUHHQLQJVEHWZHHQELUWKDQGPRQWKV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3V\FKRVRFLDO%HKDYLRUDODVVHVVPHQW±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±RQFHSHUSUHJQDQF\ +,9VFUHHQLQJIRUSUHJQDQWIHPDOH ,URQGHILFLHQF\VFUHHQLQJIRUSUHJQDQWIHPDOH 5+,QFRPSDWLELOLW\VFUHHQLQJIRUSUHJQDQWIHPDOH±WZLFHSHUSUHJQDQF\ 6\SKLOLVVFUHHQLQJIRUSUHJQDQWIHPDOH &RPSUHKHQVLYHODFWDWLRQVXSSRUWDQGFRXQVHOLQJE\DWUDLQHGSURYLGHUGXULQJSUHJQDQF\DQGRULQWKH SRVWSDUWXPSHULRGDQGFRVWVIRUEUHDVWIHHGLQJHTXLSPHQW *HVWDWLRQDOGLDEHWHVVFUHHQLQJIRUSUHJQDQWIHPDOHEHWZHHQDQGZHHNVRIJHVWDWLRQDQGDWWKHILUVW 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] SUHQDWDOYLVLWIRUZRPHQLGHQWLILHGWREHDWKLJKULVNIRUGLDEHWHV 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] S 3+<6,&$/63((&+2&&83$7,21$/7+(5$3<$1'&$5',$&5(+$%,/,7$7,21 6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 5HKDELOLWDWLRQ&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 6HUYLFHV'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,939,2242,992][11][,I,][Arial]]8WLOL]DWLRQ [[375,992,645,1045][11][,I,][Arial]]0DQDJHPHQW [[643,992,656,1044][11][,,][Arial]] [[656,992,1539,1044][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,992,1611,1045][11][,I,][ Arial]]3UH [[1611,992,1626,1045][11][,I,][Arial]] [[1627,992,1933,1045][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,992,1945,1044][11][,,][Arial]] [[1945,992,2303,1044][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,1045,984,1098][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1045,998,1097][11][,,][Arial]] [[998,1045,2106,1097][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,1045,2118,1097][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHSK\VLFDORFFXSDWLRQDOVSHHFKUHVSLUDWRU\WKHUDS\RQDQLQSDWLHQWRU RXWSDWLHQWEDVLVSURYLGHGWKHVHUYLFHVFDQEHH[SHFWHGWREULQJVLJQLILFDQWLPSURYHPHQWLQWKH 0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] T 6.,//('1856,1*)$&,/,7< 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 6NLOOHG1XUVLQJ)DFLOLW\&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU 'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,834,2242,887][11][,I,][Arial]]8WLOL]DWLRQ [[375,887,645,940][11][,I,][Arial]]0DQDJHPHQW [[643,887,656,939][11][,,][Arial]] [[656,887,1539,939][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,887,1611,940][11][,I,][Aria l]]3UH [[1611,887,1626,940][11][,I,][Arial]] [[1627,887,1933,940][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,887,1945,939][11][,,][Arial]] [[1945,887,2303,939][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,939,984,992][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,939,998,991][11][,,][Arial]] [[998,939,2106,991][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,939,2118,991][11][,,][Arial]] 7KHUHLVDGD\PD[LPXPSHU0HPEHUSHU&RYHUDJH<HDUIRU6NLOOHG1XUVLQJ)DFLOLW\ &RQILQHPHQWLQD6NLOOHG1XUVLQJ)DFLOLW\LQVHPLSULYDWHDFFRPPRGDWLRQVLVD&RYHUHG6HUYLFH $Q\GLIIHUHQFHEHWZHHQVHPLSULYDWHDQGSULYDWHURRPFRVWVZLOOQRWEHFRYHUHGXQOHVVDSULYDWH URRPLV0HGLFDOO\1HFHVVDU\ &RYHUDJH,QFOXGHVVNLOOHGQXUVLQJDQGWKHUDSHXWLFVHUYLFHVEXWRQO\DV0HGLFDOO\1HFHVVDU\IRU VKRUWWHUPFRQYDOHVFHQFH3K\VLFDORFFXSDWLRQDODQGVSHHFKWKHUDS\DUHFRYHUHGVXEMHFWWR WKHOLPLWVIRU5HKDELOLWDWLRQ6HUYLFHVLQWKH[[1239,1466,1659,1519][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1659,1466,1672,1518][11][,,][Arial]] [[1672,1466,1854,1518][11][,,][Arial]]VHFWLRQ [[1855,1466,1868,1518][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] U 75$163/$176 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 7UDQVSODQWV&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU KRVSLWDOL]DWLRQ'HGXFWLEOH 7UDQVSODQWV±&RLQVXUDQFHDIWHU'HGXFWLEOH&RLQVXUDQFHDIWHU DVVRFLDWHGRIILFHYLVLWV'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHVXQGHUWKLV3ODQ6HH WKH[[452,1100,933,1153][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[931,1100,944,1152][11][,,][Arial]] [[944,1100,1827,1152][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1828,1100,1899,1153][11][,I,][Arial]]3UH [[1899,1100,1914,1153][11][,I,][Arial]] [[1914,1100,2220,1153][11][,I,][Arial]]6HUYLFH&ODLPV [[2220,1100,2233,1152][11][,,][Arial]] VXEVHFWLRQRIWKH[[735,1152,1343,1205][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[1344,1152,1357,1204][11][,,][Arial]] [[1356,1152,2183,1204][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ 3ULRU $XWKRUL]DWLRQ 'HILQLWLRQV $XWRORJRXV D :KHQWKHVRXUFHRIFHOOVLVIURPDQLQGLYLGXDO¶VRZQPDUURZRUVWHPFHOOV $OORJHQHLF E :KHQWKHVRXUFHRIFHOOVLVIURPDUHODWHGRUXQUHODWHGGRQRU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VPHGLFDOFRYHUDJH 'RQRUFKDUJHVLQFOXGH D 7HVWLQJWRGHWHUPLQHWUDQVSODQWIHDVLELOLW\DQGGRQRUFRPSDWLELOLW\ E 8VXDODQG&XVWRPDU\5DWHRIVHFXULQJDQRUJDQIURPWKHGRQRU,QFOXGLQJWKHVXUJHRQ¶V IHHIRUUHPRYDORIWKHRUJDQDQGWKH+RVSLWDO¶VIHHIRUWKHVWRUDJHRIWKHRUJDQ F 7UDQVSRUWDWLRQRIWKHRUJDQRUWLVVXHIURPZLWKLQWKH8QLWHG6WDWHVDQG&DQDGDWRWKH SODFHZKHUHWKHWUDQVSODQWLVWRWDNHSODFH &RYHUHG6HUYLFHVXQGHUWKLV3ODQ,QFOXGHWKHIROORZLQJ D 7KH8VXDODQG&XVWRPDU\5DWHRIVHFXULQJDQRUJDQIURPDFDGDYHURUWLVVXHEDQN ,QFOXGLQJWKHVXUJHRQ¶VIHHIRUUHPRYDORIWKHRUJDQDQGWKH+RVSLWDO¶VIHHIRUWKH VWRUDJHDQGWUDQVSRUWDWLRQRIWKHRUJDQ E 7HVWLQJWRGHWHUPLQHWUDQVSODQWIHDVLELOLW\DQGGRQRUFRPSDWLELOLW\ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] F $QWLUHMHFWLRQGUXJV G 3ULYDWHGXW\QXUVLQJ H 7UDQVSRUWDWLRQH[SHQVHXSWRDOLPLWRI ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $VN0D\R&OLQLF $VN0D\R&OLQLFUHJLVWHUHGQXUVHVDQVZHUKHDOWKTXHVWLRQVQRWTXHVWLRQVDERXW3ODQEHQHILWV RUFODLPV)RU3ODQRUFODLPVTXHVWLRQVFDOO&XVWRPHU6HUYLFHDWWKHQXPEHUOLVWHGLQWKH [[375,459,615,512][11][,I,][Arial]],QWURGXFWLRQ [[615,459,628,511][11][,,][Arial]] [[628,459,785,511][11][,,][Arial]]VHFWLRQ [[785,459,798,511][11][,,][Arial]] $VN0D\R&OLQLFLVDWHOHSKRQLFDQGZHEEDVHGPHGLFDOUHVRXUFHDYDLODEOHWR0HPEHUV KRXUVDGD\GD\VD\HDU,WVSXUSRVHLVWRSURYLGHKHDOWKLQIRUPDWLRQWRKHOS0HPEHUV SURWHFWWKHLUKHDOWKDQGFKRRVHDSSURSULDWHOHYHOVRIPHGLFDOFDUH0HPEHUVFDQVHHNDQVZHUV WRTXHVWLRQVDERXWLOOQHVVLQMXULHVRUJHQHUDOKHDOWKWRSLFVZKHWKHURUQRWFRYHUHGXQGHUWKLV 3ODQ $VN0D\R&OLQLFRIIHUV0HPEHUV D ,QVWUXFWLRQVDERXWSUHYHQWLYHKHDOWKVWUDWHJLHVDQGVHOIFDUH E ,QIRUPDWLRQWRKHOS0HPEHUVGHFLGHWKHDSSURSULDWHOHYHORIFDUHIRUWKHLUVLWXDWLRQ F $QVZHUVWRKHDOWKTXHVWLRQVDQGFRQFHUQV G ,QVWUXFWLRQVIRUDFXWHDQGQRQDFXWHFRQGLWLRQV H %DVLFKHDOWKFDUHLQIRUPDWLRQ $VN0D\R&OLQLFLVDYDLODEOHKRXUVDGD\GD\VD\HDU $VN0D\R&OLQLF 2U ZZZPD\RFOLQLFKHDOWKVROXWLRQVZHOOQHVVFRP ,QDPHGLFDOHPHUJHQF\0HPEHUVVKRXOGVWLOOFDOO$VN0D\R&OLQLFLVQRWD VXEVWLWXWHIRUHPHUJHQF\UHVSRQVHV\VWHPV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V VWDJHRIUHDGLQHVVWRFKDQJH G 5HYLHZRIPHGLFDWLRQRSWLRQVDQGLQGLYLGXDOL]HGPHGLFDWLRQSODQQLQJ H )ROORZXSFDOOVIURPDFRXQVHORUIRUFRQWLQXHGVXSSRUWDQGUHODSVHSUHYHQWLRQ I $FFHVVWR0D\RUHJLVWHUHGQXUVHVKRXUVDGD\GD\VD\HDUIRUQLFRWLQH ZLWKGUDZDOVXSSRUW 3URIHVVLRQDOFRXQVHORUVDUHDYDLODEOHIURP 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 0D\R&OLQLF3UHJQDQF\&DUH$GYLVRU D 7KH0D\R&OLQLF3UHJQDQF\&DUH$GYLVRULVDWHOHSKRQHEDVHGSURJUDPGHVLJQHGWR RIIHURQJRLQJHGXFDWLRQDQGVXSSRUWWRSUHJQDQW0HPEHUVWKURXJKRXWWKHSUHJQDQF\ DQGSRVWSDUWXPSHULRGDQGUHIHUKLJKULVNPRWKHUVDQGEDELHVWRWKHLU+HDOWKFDUH 3URYLGHUV7KHJRDOVRIWKHSURJUDPDUHWRSURPRWHVDIHSUHJQDQFLHVIXOOWHUP GHOLYHULHVDQGKHDOWK\PRWKHUVDQGEDELHV E $IWHUDSUHJQDQW0HPEHUHQUROOVLQWKHSURJUDPVKHZLOOUHFHLYHDFDOOIURPD0D\R &OLQLF3UHJQDQF\&DUH$GYLVRUQXUVHGXULQJHDFKWULPHVWHURIKHUSUHJQDQF\DQGGXULQJ WKHPRQWKIROORZLQJELUWK7KHQXUVHZLOOSURYLGHPHGLFDOLQIRUPDWLRQDQVZHUTXHVWLRQV DQGRIIHUVXSSRUWGXULQJWKHSUHJQDQF\DQGZLOOUHLQIRUFHWKHLPSRUWDQFHRISUHQDWDO PHGLFDOFDUH7KURXJKRXWWKHSUHJQDQF\WKHQXUVHZLOOWUDFNV\PSWRPVDQGULVNIDFWRUV VRWKH0HPEHUFDQEHUHIHUUHGWRKHU+HDOWKFDUH3URYLGHURUDFDVHPDQDJHULI QHFHVVDU\0D\R&OLQLF3UHJQDQF\&DUH$GYLVRUQXUVHVDUHDYDLODEOHEHWZHHQ 0HPEHUV¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VKHDOWKDQGKHOSWKH 0HPEHUGHYHORSSHUVRQDOVWUDWHJLHVWRDVVLVWZLWKGDLO\VHOIPDQDJHPHQW F 7KH0HPEHUZLOOUHFHLYHDQHGXFDWLRQDOSDFNHWFRQWDLQLQJLQIRUPDWLRQDERXWKHDUW GLVHDVH G 7 KH0HPEHU¶VQXUVHRUFRXQVHORUZLOOVFKHGXOHSKRQHFDOOVDWWKH0HPEHU¶V FRQYHQLHQFHWRDQVZHUTXHVWLRQVDVVHVVFXUUHQWKHDOWKDQGKHOSSUHSDUHIRUWKHQH[W GRFWRUYLVLW 0D\R&OLQLF&DUGLRYDVFXODU$GYLVRU 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21; (;&/86,216 ([FOXVLRQV 1RWZLWKVWDQGLQJDQ\SURYLVLRQLQWKLV3ODQWRWKHFRQWUDU\WKLV3ODQZLOOQRWSURYLGHEHQHILWVIRU WKHIROORZLQJVHUYLFHVPHGLFDOSURFHGXUHVRUVXSSOLHVUHJDUGOHVVRI0HGLFDO1HFHVVLW\RU UHFRPPHQGDWLRQE\D+HDOWKFDUH3URYLGHU7KH0HPEHULVUHVSRQVLEOHIRURIWKHFKDUJHV DVVRFLDWHGZLWKWKHOLVWHGH[FOXVLRQV7KHVHFKDUJHVDUHQRW&RYHUHG6HUYLFHVDQGWKHUHIRUH ZLOOQRWFRXQWWRZDUGWKH$QQXDO2XWRI3RFNHW0D[LPXP,QDGGLWLRQWRWKRVHH[FOXVLRQVOLVWHG EHORZWKH[[597,828,1017,881][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1018,828,1031,880][11][,,][Arial]] [[1030,828,1176,880][11][,,][Arial]]VHFWLRQ [[1176,828,1189,880][11][,,][Arial]] [[1188,828,1806,880][11][,,][Arial]]FRQWDLQVDGGLWLRQDOH[FOXVLRQV [[1807,828,1820,880][11][,,][Arial]] 1REHQHILWVDUHDYDLODEOHIRU 6HUYLFHVRUVXSSOLHVSURYLGHGEHIRUHWKH0HPEHU¶VFRYHUDJHLVHIIHFWLYHRUVHUYLFHVRU VXSSOLHVSURYLGHGDIWHUWKH0HPEHU¶VFRYHUDJHWHUPLQDWHVHYHQWKRXJKWKH0HPEHU¶V ,OOQHVVRU,QMXU\VWDUWHGZKLOHFRYHUDJHZDVLQIRUFH ([SHQVHVLQH[FHVVRI&DOHQGDU<HDU0D[LPXP%HQHILWV0D[LPXP/LIHWLPH%HQHILWV DQGPD[LPXPDOORZDQFHVDVGHWDLOHGLQWKH[[1425,1287,1845,1340][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1845,1287,1858,1339][11][,,][Arial]] [[1858,1287,2015,1339][11][,,][Arial]]VHFWLRQ [[2016,1287,2029,1339][11][,,][Arial]] 2XWRI1HWZRUNFKDUJHVIRU&RYHUHG6HUYLFHVLQH[FHVVRI8VXDODQG&XVWRPDU\5DWHV HYHQZKHQSDLGDWWKH,Q1HWZRUNEHQHILWOHYHO 7UHDWPHQWVHUYLFHVVXSSOLHVRUSURFHGXUHVWKDWDUHQRW0HGLFDOO\1HFHVVDU\H[FHSW VHUYLFHVVSHFLILFDOO\OLVWHGLQWKH[[1185,1588,1605,1641][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1606,1588,1619,1640][11][,,][Arial]] [[1618,1588,1776,1640][11][,,][Arial]]VHFWLRQ [[1776,1588,1789,1640][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] ([SHQVHVIRUEHUHDYHPHQWFRXQVHOLQJ 6HUYLFHVRIWKHFOHUJ\ ([SHQVHVZKLFKZRXOGEHHOLJLEOHIRUSD\PHQWXQGHUDQ\SODQRUSROLF\UHTXLUHGE\ODZ ZKHWKHUWKH0HPEHUFKRVHWREHFRYHUHGXQGHUVXFKSODQRUQRWZLOOQRWEHFRQVLGHUHG HOLJLEOH ([SHQVHVIRUWUHDWPHQWIRUZKLFKWKH0HPEHULVDOVRHOLJLEOHIRUEHQHILWVXQGHUDQ\RWKHU JURXSLQVXUDQFHRUVHUYLFHSODQWKURXJKDQ\HPSOR\HU VHHWKH[[1833,745,2326,798][11][,I,][Arial]]&RRUGLQDWLRQRI%HQHILWV [[2326,745,2339,797][11][,,][Arial]] VHFWLRQ RUWKHPHGLFDOSD\PHQWRUSHUVRQDOLQMXU\VHFWLRQVRIDXWRPRELOHFDVXDOW\RU OLDELOLW\LQVXUDQFHUHJDUGOHVVRIZKHWKHUVXFKSROLF\LVRZQHGE\WKH0HPEHURUVRPH RWKHUSDUW\ZLOOQRWEHFRQVLGHUHGHOLJLEOH 6HUYLFHVWKDWDUHSDLGRUSD\DEOHXQGHUZRUNHUV¶FRPSHQVDWLRQRFFXSDWLRQDOGLVHDVH ODZRUVLPLODUODZ,QFOXGLQJH[SHQVHVIRU,QMXU\RU,OOQHVVZKLFKZHUHHOLJLEOHIRU SD\PHQWXQGHUZRUNHUV¶FRPSHQVDWLRQRUVLPLODUODZDQGKDYHUHDFKHGWKHPD[LPXP UHLPEXUVHPHQWSDLGXQGHUZRUNHUV¶FRPSHQVDWLRQRUVLPLODUODZ 6HUYLFHVWKDWDUHSDLGXQGHU0HGLFDUH U\LIEHQHILWVDUHDYDLODEOHIRUVXFK ,OOQHVV,QMXU\RUH[SHQVHVXQGHUWKHODZVRIWKH8QLWHG6WDWHVRUDQ\SROLWLFDO VXEGLYLVLRQWKHUHRI ([SHQVHVLQFXUUHGGXHWRDQ,OOQHVVRU,QMXU\UHVXOWLQJIURPWKH0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] ([SHQVHVIRU(GXFDWLRQDOPDWHULDOVDQGVXSSOLHVH[FHSWDVVSHFLILFDOO\OLVWHGLQWKH [[525,353,946,406][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[946,353,959,405][11][,,][Arial]] [[959,353,1104,405][11][,,][Arial]]VHFWLRQ [[1104,353,1141,405][11][,,][Arial]] [[1142,353,1155,405][11] [,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] WHFKQRORJ\ $57 SURFHGXUHV,QFOXGLQJVSHUPEDQNLQJDUWLILFLDOLQVHPLQDWLRQLQYLWURIHUWLOL]DWLRQ ,9*) JDPHWHLQWUDIDOORSLDQWUDQVIHU *,)7 DQG]\JRWHLQWUDIDOORSLDQWUDQVIHU $,)7 ZLWKRUZLWKRXWFU\RSUHVHUYDWLRQRUIUR]HQHPEU\RWUDQVIHU,QFOXGLQJFKDUJHVIRUGRQRU RYDRUVSHUP &KDUJHVUHODWHGWRRULQFRQQHFWLRQZLWKDGRSWLRQRUVXUURJDWHVHUYLFHV 6HUYLFHVRIDGRXOD 'HOLYHU\VHUYLFHVRID&HUWLILHG1XUVH0LGZLIHZKHQSHUIRUPHGDWDQXQOLFHQVHG XQDFFUHGLWHGIDFLOLW\ ([SHQVHVUHODWHGWRVHUYLFHVWRFKDQJHOLIHVW\OHRUDOWHUVH[XDOFKDUDFWHULVWLFV,QFOXGLQJ WUDQVVH[XDO VH[FKDQJH SURFHGXUHVSUHSDUDWLRQIRUVXFKSURFHGXUHV,QFOXGLQJ FRXQVHOLQJDQ\UHODWHGVHUYLFHVRUFRPSOLFDWLRQVWKHUHRI &KDUJHVUHODWHGWRFRXQVHOLQJIRUSHUVRQVVXIIHULQJIURPJHQGHULGHQWLILFDWLRQSUREOHPV ,QFOXGLQJEHKDYLRUPRGLILFDWLRQWKHUDS\ 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 5RXWLQHWUHDWPHQWRIREHVLW\XQOHVVSUHVFULEHGE\DQGDFFRPSDQLHGE\DVWDWHPHQWIURP DSK\VLFLDQVWDWLQJWKH0HPEHULVPRUELGO\REHVHDQGLGHQWLI\LQJZKLFKERGLO\RUJDQV DQGIXQFWLRQVDUHIDLOLQJ 5HFRQVWUXFWLYHRUFRVPHWLFVXUJHU\VHUYLFHVGUXJVWKDWUHVWRUHRULPSURYHERGLO\ DSSHDUDQFHZLWKRXWDIIHFWLQJERG\IXQFWLRQQHFHVVDU\IRUOLIHH[FHSWDVVSHFLILFDOO\ OLVWHGDVD&RYHUHG6HUYLFHLQWKH[[1221,602,1641,655][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1642,602,1655,654][11][,,][Arial]] [[1654,602,1812,654][11][,,][Arial]]VHFWLRQ [[1812,602,1825,654][11 ][,,][Arial]] LEXODUGLVRUGHU 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] RUGHYLFHVKDYLQJIHDWXUHVRYHUDQGDERYHWKDWZKLFK EHVWPHHWVWKH0HGLFDO1HFHVVLW\RIWKH0HPEHU 0RWRUYHKLFOHVOLIWVIRUZKHHOFKDLUVVFRRWHUVRUVWDLUOLIWV 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] &XVWRGLDO&DUHH[FHSWDVVSHFLILFDOO\OLVWHGLQWKH[[1542,301,1923,354][11][,I,][Arial]]6FKHGXOHRI%HQHI [[1917,301,1929,354][11][,I,][Arial]]L [[1927,301,1963,354][11][,I,][Arial]]WV [[1963,301,1976,353][11][,,][Arial]] [[1976,301,2121,353][11][,,][Arial]]VHFWLRQ [[2121,301,2134,353][11][,,][Arial]] [[2133,301,2146,353][11][,,][Arial]] 5HVSLWH&DUHH[FHSWDVVSHFLILFDOO\OLVWHGLQWKH[[1599,391,1932,444][11][,I,][Arial]]&RQWLQXHG&DUH [[1931,391,1944,443][11][,,][Arial]] [[1956,391,2338,443][11][,,][Arial]]VXEVHFWLRQRIWKH [[525,444,925,497][11][,I,][Arial]]6FKHGXOHRI%HQHILW [[923,444,946,497][11][,I,][Arial]]V [[946,444,959,496][11][,,][Arial]] [[959,444,1116,496][11][,,][Arial]]VHFWLRQ [[1116,444,1129,496][11][,, ][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21;, &/$,0$1'$33($/352&('85(6 ,QWURGXFWLRQ $OOFODLPVPXVWEHVXEPLWWHGWRWKH3ODQDQGDOOFODLPVUHYLHZZLOOFRPSO\ZLWK WKHUXOHVDQGSURFHGXUHVVHWIRUWKLQWKLV[[1224,564,2036,617][11][,I,][Arial]]&ODLPV3D\PHQWDQG$SSHDO3URFHGXUH [[2036,564,2049,616][11][,,][Arial]] [[2051,564,2337,616][11][,,][Arial]]VHFWLRQ 7KLV [[375,617,1243,670][11][,I,][Arial]]&ODLP&RPSODLQWDQG$SSHDO3URFHGXUHV [[1244,617,1257,669][11][,,][Arial]] [[1263,617,2337,669][11][,,][Arial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x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJQDPHDGGUHVVDQGGDWHRIELUWK x WKHGDWH V RIVHUYLFH x WKHQDPHDQGFUHGHQWLDOVRIWKH+HDOWKFDUH3URYLGHU x WKHSODFHRIVHUYLFH x DVSHFLILFGLDJQRVLVFRGH>FXUUHQW,QWHUQDWLRQDO&ODVVLILFDWLRQRI'LVHDVH &OLQLFDO0RGLILFDWLRQ ,&'&0 IRUPDW@ x DVSHFLILFVHUYLFHFRGHIRUZKLFKSD\PHQWLVUHTXHVWHG>FXUUHQW+HDOWKFDUH &RPPRQ3URFHGXUH&RGLQJ6\VWHP +&3&6 RU&XUUHQW3URFHGXUDO 7HUPLQRORJ\ &37 IRUPDW@ x WKHDPRXQWRIELOOHGFKDUJHV x LID0HPEHUKDVDOUHDG\SDLGIRUWKHPHGLFDOVHUYLFHRUVXSSO\DQGLV UHTXHVWLQJUHLPEXUVHPHQWKHVKHPXVWDOVRVXEPLWSURRIRISD\PHQW 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $FODLPIRU3UHVFULSWLRQ'UXJVPXVWEHILOHGRQD3UHVFULSWLRQ'UXJFODLPIRUP ZKLFKLVDYDLODEOHIURPWKH&ODLPV$GPLQLVWUDWRU DQGPXVWLQFOXGHWKHIROORZLQJ LQIRUPDWLRQ x WKHQDPHRIWKH3ODQWKHFDUULHUQXPEHUDQGWKHJURXSQXPEHU x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJQDPHDGGUHVVGDWHRIELUWKDQG 0HPEHULGHQWLILFDWLRQQXPEHU x WKHGDWH V RIVHUYLFH x WKHQDPHDQGFUHGHQWLDOVRIWKHKHDOWKFDUHSURYLGHU x WKHSODFHRIVHUYLFH>HJ1DWLRQDO$VVRFLDWLRQRI%RDUGVRI3KDUPDF\ 1$%3 QXPEHU@ x DVSHFLILFSURGXFWFRGHIRUZKLFKSD\PHQWLVUHTXHVWHG>FXUUHQW1DWLRQDO 'UXJ&RGH 1'& IRUPDW@WKHGRVHDQGWKHQXPEHURIGD\VVXSSO\ x WKHDPRXQWRIELOOHGFKDUJHV x LIWKHLWHPUHTXLUHG3ULRU$XWKRUL]DWLRQFOLQLFDOLQIRUPDWLRQIRUWKH3ODQWR PDNHDFRYHUDJHGHWHUPLQDWLRQ x LID0HPEHUKDVDOUHDG\SDLGIRUWKH3UHVFULSWLRQ'UXJDQGLVUHTXHVWLQJ UHLPEXUVHPHQWKHVKHPXVWDOVRVXEPLWSURRIRISD\PHQW $FODLPPXVWEHILOHGZLWKLQRQH \HDUIROORZLQJWKHGDWHRIVHUYLFH 5HVFLVVLRQ 7KH3ODQPD\5HVFLQGD0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] :ULWWHQ&RPSODLQWV7KH0HPEHUPD\VXEPLWDFRPSODLQWWRWKH &ODLPV$GPLQLVWUDWRULQZULWLQJ$FRPSODLQWIRUPPD\EH REWDLQHGE\FRQWDFWLQJDGGLWLRQDO FDOHQGDU GD\VWRQRWLI\WKH0HPEHU7KH&ODLPV$GPLQLVWUDWRUZLOOLQIRUP WKH0HPEHULQDGYDQFHRIVXFKDQH[WHQVLRQ ,IWKH&ODLPV$GPLQLVWUDWRUXSKROGVWKHRULJLQDOGHFLVLRQUHJDUGLQJ WKH0HPEHU¶VFRPSODLQWWKH0HPEHUPD\UHTXHVWDQDSSHDORI WKHFRPSODLQWGHFLVLRQDVGHVFULEHGEHORZ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $SSHDORIWKH&RPSODLQW'HFLVLRQ ,IWKH0HPEHULVQRWVDWLVILHGZLWKWKH &ODLPV$GPLQLVWUDWRU¶VFRPSODLQWGHFLVLRQWKH0HPEHUPD\DSSHDOWKHGHFLVLRQ E\UHTXHVWLQJDZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJE\WKH(PSOR\HU D 7KH0HPEHU¶VUHTXHVWPXVWEHLQZULWLQJDQGVHQWWRWKHIROORZLQJ DGGUHVV 0D\R&OLQLF+HDOWK6ROXWLRQV $WWQ0HPEHU$SSHDOV VW 6WUHHW1: 5RFKHVWHU01 E $ZULWWHQDSSHDOVKRXOGLQFOXGHWKHIROORZLQJLQIRUPDWLRQ x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJWKH0HPEHU¶VQDPHDGGUHVV DQGGDWHRIELUWK x LQIRUPDWLRQUHJDUGLQJWKHFODLPWKH0HPEHULVDSSHDOLQJVXFKDVD FRS\RIWKH([SODQDWLRQRI%HQHILWVWKHFODLPQXPEHUOLVWHGRQWKH ([SODQDWLRQRI%HQHILWVDFRS\RIWKH3ULRU$XWKRUL]DWLRQGHQLDOWKH 0HPEHUUHFHLYHGRURWKHULQIRUPDWLRQWRLGHQWLI\WKHFODLP x DVWDWHPHQWWKDWWKH0HPEHULVUHTXHVWLQJDQDSSHDODQGZKHWKHUWKH 0HPEHULVUHTXHVWLQJZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJ x DQH[SODQDWLRQRIZK\WKH0HPEHULVUHTXHVWLQJDQDSSHDO,QFOXGLQJ WKHSDUWLFXODUDVSHFWRIWKHGHQLDOWKH0HPEHULVGLVSXWLQJ x VXSSRUWLQJGRFXPHQWDWLRQ 8SRQUHTXHVWWKH&ODLPV$GPLQLVWUDWRUZLOODVVLVWWKH0HPEHUZLWK VXEPLVVLRQRIWKH0HPEHU¶VDSSHDO$0HPEHUFDQUHTXHVWDVVLVWDQFH E\FRQWDFWLQJ FDOHQGDU GD\VIURPUHFHLSWRIWKHZULWWHQQRWLFHRIWKH0HPEHU¶VDSSHDOIRUD KHDULQJ I ,IWKH0HPEHUFRQVLGHUVWKH(PSOR\HU¶VGHFLVLRQWREHSDUWLDOO\RUZKROO\ DGYHUVHWRWKH0HPEHUWKH0HPEHUPD\VXEPLWDZULWWHQUHTXHVWIRU H[WHUQDOUHYLHZRIWKHDSSHDOGHFLVLRQWRWKH0LQQHVRWD&RPPLVVLRQHURI &RPPHUFHDVGHVFULEHGLQWKH[[1460,2883,1793,2936][11][,I,][Arial]]([WHUQDO5HYLHZ [[1791,2883,1804,2935][11][,,][Arial]] [[1804,2883,2093,2935][11][,,][Arial]]VHFWLRQEHORZ [[2094,2883,2107,2935] [11][,,][Arial]] 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6WDQGDUG0HGLFDO$SSHDOV E 7KLVVHFWLRQDSSOLHVZKHQWKH0HPEHUZLVKHVWRVXEPLW DQDSSHDOZKRVHRXWFRPHUHTXLUHVDPHGLFDOGHWHUPLQDWLRQDQGWKHDSSHDOGRHVQRW PHHWWKHFULWHULDIRUDQH[SHGLWHGPHGLFDODSSHDO)RUH[SHGLWHGPHGLFDODSSHDOVVHH WKH[[602,459,1154,512][11][,I,][Arial]]([SHGLWHG0HGLFDO$SSHDOV [[1155,459,1168,511][11][,,][Arial]] [[1168,459,1531,511][11][,,][Arial]]VXEVHFWLRQEHORZ [[1532,459,1545,511][11][,,][Arial]] )LUVW/HYHORI$SSHDOIRU6WDQGDUG0HGLFDO'HWHUPLQDWLRQV ,IWKH0HPEHULV QRWVDWLVILHGZLWKWKH&ODLPV$GPLQ LVWUDWRU¶VLQLWLDOGHFLVLRQWKH0HPEHURUWKH 0HPEHU¶VDWWHQGLQJ+HDOWKFDUH3URYLGHUPD\DSSHDO D 7KH0HPEHU¶VDSSHDOPD\EHVXEPLWWHGLQZULWLQJRUE\WHOHSKRQHZLWKLQ VL[W\ FDOHQGDUGD\VIROORZLQJWKH&ODLPV$GPLQLVWUDWRU¶VLQLWLDO GHFLVLRQ,IVXE PLWWHGLQZULWLQJWKH0HPEHU¶VDSSHDOPXVWEHVHQWWR 0D\R&OLQLF+HDOWK6ROXWLRQV $WWQ0HPEHU$SSHDOV VW 6WUHHW1: 5RFKHVWHU01 E $ZULWWHQDSSHDOVKRXOGLQFOXGHWKHIROORZLQJLQIRUPDWLRQ x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0H PEHU,QFOXGLQJWKH0HPEHU¶VQDPHDGGUHVV DQGGDWHRIELUWK x LQIRUPDWLRQUHJDUGLQJWKHFODLPWKH0HPEHULVDSSHDOLQJVXFKDVD FRS\RIWKH([SODQDWLRQRI%HQHILWVWKHFODLPQXPEHUOLVWHGRQWKH ([SODQDWLRQRI%HQHILWVDFRS\RIWKH3ULRU$XWKRUL]DWLRQGHQLDOWKH 0HPEHUUHFHLYHGRURWKHULQIRUPDWLRQWRLGHQWLI\WKHFODLP x DVWDWHPHQWWKDWWKH0HPEHULVUHTXHVWLQJDQDSSHDO x DQH[SODQDWLRQRIZK\WKH0HPEHULVUHTXHVWLQJDQDSSHDO,QFOXGLQJ WKHSDUWLFXODUDVSHFWRIWKHGHQLDOWKH0HPEHULVGLVSXWLQJ x VXSSRUWLQJGRFXPHQWDWLRQ WKHGRFXPHQWDWLRQUHTXLUHGPD\,QFOXGH FRSLHVRISDUWRUDOORIWKHPHGLFDOUHFRUGDQGDZULWWHQVWDWHPHQWIURP WKHDWWHQGLQJ+HDOWKFDUH3URYLGHU 8SRQUHTXHVWWKH&ODLPV$GPLQLVWUDWRUZLOODVVLVWWKH0HPEHUZLWK VXEPLVVLRQRIWK H0HPEHU¶VDSSHDO$0HPEHUFDQUHTXHVWDVVLVWDQFH E\FRQWDFWLQJ 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6XEPLWDUHTXHVWIRUH[WHUQDOUHYLHZRIWKHILUVWOHYHODSSHDO GHFLVLRQWRWKH0LQQHVRWD&RPPLVVLRQHURI&RPPHUFHDV GHVFULEHGLQWKH[[1312,406,1646,459][11][,I,][Arial]]([WHUQDO5HYLHZ [[1643,406,1656,458][11][,,][Arial]] [[1656,406,2001,458][11][,,][Arial]]VHFWLRQEHORZRU [[2000,406,2013,458][11][,,][Arial]] 5HTXHVWDVHFRQGOHYHORIDSSHDOE\WKH(PSOR\HUDVGHVFULEHG EHORZ,IWKH0HPEHUFKRRVHVWKHVHFRQGOHYHORIDSSHDODQGWKH 0HPEHUFRQVLGHUVWKH(PSOR\HU¶VGHFLVLRQWREHSDUWLDOO\RU ZKROO\DGYHUVHWRWKH0HPEHUWKH0HPEHUZLOOKDYHWKHULJKWWR VXEPLWDUHTXHVWIRUH[WHUQDOUHYLHZRIWKHVHFRQGOHYHODSSHDO GHFLVLRQWRWKH0LQQHVRWD&RPPLVVLRQHURI&RPPHUFHDV GHVFULEHGLQWKH[[1312,800,1646,853][11][,I,][Arial]]([WHUQDO5HYLHZ [[1643,800,1656,852][11][,,][Arial]] [[1656,800,1945,852][11][,,][Arial]]VHFWLRQEHORZ [[1946,800,1959,852][11][,,][Arial]] 6HFRQG/HYHORI$SSHDOIRU6WDQGDUG0HGLFDO'HWHUPLQDWLRQV ,IWKH0HPEHU LVQRWVDWLVILHGZLWKWKH&ODLPV$GPLQLVWUDWRU¶VGHFLVLRQDWWKHILUVWOHYHORIDSSHDO GHVFULEHGDERYHWKH0HPEHUPD\UHTXHVWDZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJ E\WKH(PSOR\HU D 7KH0HPEHU¶VUHTXHVWIRUDVHFRQGOHYHODSSHDOPXVWEHLQZULWLQJDQG VHQWWRWKHIROORZLQJDGGUHVVZLWKLQVL[W\ FDOHQGDUGD\VIROORZLQJWKH &ODLPV$GPLQLVWUDWRU¶VGHFLVLRQRQWKHILUVWOHYHORIDSSHDO 0D\R&OLQLF+HDOWK6ROXWLRQV $WWQ0HPEHU$SSHDOV VW 6WUHHW1: 5RFKHVWHU01 E $ZULWWHQUHTXHVWIRUDVHFRQGOHYHODSSHDOVKRXOGLQFOXGHWKHIROORZLQJ LQIRUPDWLRQ x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJWKH0HPEHU¶VQDPHDGGUHVV DQGGDWHRIELUWK x LQIRUPDWLRQUHJDUGLQJWKHFODLPWKH0HPEHULVDSSHDOLQJVXFKDVD FRS\RIWKH([SODQDWLRQRI%HQHILWVWKHFODLPQXPEHUOLVWHGRQWKH ([SODQDWLRQRI%HQHILWVDFRS\RIWKH3ULRU$XWKRUL]DWLRQGHQLDOWKH 0HPEHUUHFHLYHGRURWKHULQIRUPDWLRQWRLGHQWLI\WKHFODLP x DVWDWHPHQWWKDWWKH0HPEHULVUHTXHVWLQJDVHFRQGOHYHODSSHDODQG ZKHWKHUWKH0HPEHULVUHTXHVWLQJZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJ x DQH[SODQDWLRQRIZK\WKH0HPEHULVUHTXHVWLQJDVHFRQGOHYHO DSSHDO,QFOXGLQJWKHSDUWLFXODUDVSHFWRIWKHGHQLDOWKH0HPEHULV GLVSXWLQJ x VXSSRUWLQJGRFXPHQWDWLRQ WKHGRFXPHQWDWLRQUHTXLUHGPD\,QFOXGH FRSLHVRISDUWRUDOORIWKHPHGLFDOUHFRUGDQGDZULWWHQVWDWHPHQWIURP WKHDWWHQGLQJ+HDOWKFDUH3URYLGHU 8SRQUHTXHVWWKH&ODLPV$GPLQLVWUDWRUZLOODVVLVWWKH0HPEHUZLWK VXEPLVVLRQRIWKH0HPEHU¶VVHFRQGOHYHODSSHDO$0HPEHUFDQUHTXHVW DVVLVWDQFHE\FRQWDFWLQJ 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] G )LOLQJDVHFRQGOHYHORIDSSHDODXWKRUL]HVWKH(PSOR\HUWRUHYLHZWKH 0HPEHU¶VPHGL FDOUHFRUGVUHODWHGWRWKHVHFRQGOHYHORIDSSHDODV QHHGHGWRUHVROYHVXFKDSSHDO H ,QWKHFDVHRIDZULWWHQUHFRQVLGHUDWLRQWKH(PSOR\HUZLOOSURYLGHQRWLFH RILWVGHFLVLRQWRWKH0HPEHUZLWKLQWKLUW\ FDOHQGDUGD\VIURPUHFHLSW RIZULWWHQQRWLFHRIWKH0HPEHU¶VVHFRQGOHYHODSSHDOUHTXHVWLQJZULWWHQ UHFRQVLGHUDWLRQ I ,QWKHFDVHRIDKHDULQJWKH(PSOR\HUZLOOSURYLGHZULWWHQQRWLFHRIWKH KHDULQJSDQHO¶VGHFLVLRQWRWKH0HPEHUZLWKLQIRUW\ILYH FDOHQGDU GD\VIURPUHFHLSWRIWKHZULWWHQQRWLFHRIWKH0HPEHU¶VVHFRQGOHYHO DSSHDOUHTXHVWLQJDKHDULQJ J ,IWKH0HPEHUFRQVLGHUVWKH(PSOR\HU¶VGHFLVLRQWREHSDUWLDOO\RUZKROO\ DGYHUVHWRWKH0HPEHUWKH0HPEHUZLOOKDYHWKHULJKWWRVXEPLWD UHTXHVWIRUH[WHUQDOUHYLHZRIWKHVHFRQGOHYHOH[SHGLWHGDSSHDOGHFLVLRQ WRWKH0LQQHVRWD&RPPLVVLRQHURI&RPPHUFHDVGHVFULEHGLQWKH [[825,1191,1159,1244][11][,I,][Arial]]([WHUQDO5HYLHZ [[1157,1191,1170,1243][11][,,][Arial]] [[1170,1191,1459,1243][11][,,][Arial]]VHFWLRQEHORZ [[1460,1191,1473,1243][11][,,][Arial]] ([SHGLWHG0HGLFDO$SSHDOV F 7KLVVHFWLRQDSSOLHVZKHQDQLQLWLDOGHFLVLRQQRWWRJUDQWD 3ULRU$XWKRUL]DWLRQUHTXHVW RUFRQWLQXDWLRQRIDQLQSDWLHQWVWD\ LVPDGHSULRUWRRU GXULQJDQRQJRLQJVHUYLFHUHTXLULQJ3ULRU$XWKRUL]DWLRQDQGWKH0HPEHU¶VDWWHQGLQJ +HDOWKFDUH3URYLGHUEHOLHYHVWKDWWKHGHFLVLRQZDUUDQWVDQH[SHGLWHGDSSHDO )LUVW/HYHORI$SSHDOIRU([SHGLWHG0HGLFDO'HWHUPLQDWLRQV ,IWKH0HPEHULV QRWVDWLVILHGZLWKWKH&ODLPV$GPLQLVWUDWRU¶VLQLWLDOGHFLVLRQRQD3ULRU $XWKRUL]DWLRQUHTXHVWWKH0HPEHURUWKH0HPEHU¶VDWWHQGLQJ+HDOWKFDUH 3URYLGHUPD\DSSHDOWKHLQLWLDOGHFLVLRQ D $0HPEHURUWKH0HPEHU¶VDWWHQGLQJ+HDOWK&DUH3URYLGHUPD\VX EPLW DQH[SHGLWHGILUVWOHYHODSSHDOE\WHOHSKRQHE\FDOOLQJ E 7KH&ODLPV$GPLQLVWUDWRUZLOOQRWLI\WKH0HPEHUDQGWKH0HPEHU¶V DWWHQGLQJ+HDOWKFDUH3URYLGHUE\WHOHSKRQHRILWVGHFLVLRQQRODWHUWKDQ VHYHQW\WZR 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] RIH[SHGLWHGDSSHDOGHVFULEHGDERYHWKH0HPEHUPD\UHTXHVWDQH[SHGLWHG VHFRQGOHYHODSSHDOE\WKH(PSOR\HU D $0HPEHURUWKH0HPEHU¶VDWWHQGLQJ+HDOWK&DUH3URYLGHUPD\VXEPLW DQH[SHGLWHGVHFRQGOHYHODSSHDOE\WHOHSKRQHE\FDOOLQJ026,2337,2078][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21;,, &225',1$7,212)%(1(),76 &RRUGLQDWLRQRI*URXS&RYHUDJH &RRUGLQDWLRQRIEHQHILWVZLOOEHSHUIRUPHGLQDFFRUGDQFH ZLWKDSSOLFDEOHVWDWHODZ,QFOXGLQJ0LQQHVRWD6WDWXWH$DQG&KDSWHUVFRYHULQJWKH0HPEHUWKLV3ODQPD\EHD 3ULPDU\3ODQDVWRRQHRUPRUH2WKHU,QVXUDQFH3ODQDQGPD\EHD6HFRQGDU\ 3ODQDVWRDGLIIHUHQWSODQRUSODQV G $OORZDEOH([SHQVH$QHFHVVDU\UHDVRQDEOHDQGFXVWRPDU\LWHPRIH[SHQVHIRU KHDOWKFDUHZKHQWKHLWHPRIH[SHQVHLVFRYHUHGDWOHDVWLQSDUWE\RQHRUPRUH LQVXUDQFHSODQVFRYHULQJWKH0HPEHUIRUZKRPWKHFODLPLVPDGH 7KHGLIIHUHQFHEHWZHHQWKHFRVWRIDSULYDWH+RVSLWDOURRPDQGWKHFRVWRIDVHPL SULYDWH+RVSL WDOURRPLVQRWFRQVLGHUHGDQ$OORZDEOH([SHQVHXQOHVVWKH0HPEHU¶VVWD\ LQDSULYDWH+RVSLWDOURRPLV0HGLFDOO\1HFHVVDU\HLWKHULQWHUPVRIJHQHUDOO\DFFHSWHG PHGLFDOSUDFWLFHRUDVVSHFLILFDOO\GHILQHGLQWKLV3ODQ 8QGHUWKLV3ODQDQRXWSDWLHQW3UHVFULSWLRQ'UXJLVQRWFRQVLGHUHGDQ$OORZDEOH ([SHQVH 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] :KHQDQLQVXUDQFHSODQSURYLGHVEHQHILWVLQWKHIRUPRIVHUYLFHVWKHUHDVRQDEOHFDVK YDOXHRIHDFKVHUYLFHUHQGHUHGZLOOEHFRQVLGHUHGERWKDQ$OORZDEOH([SHQVHDQGD EHQHILWSDLG H &ODLP'HWHUPLQDWLRQ3HULRG$&DOHQGDU<HDU+RZHYHULWGRHVQRWLQFOXGHDQ\SDUWRI D\HDUGXULQJZKLFKDQ0HPEHUKDGQRFRYHUDJHXQGHUWKLV3ODQRUDQ\SDUWRID\HDU EHIRUHWKHGDWHWKLV&2%SURYLVLRQRUVLPLODUSURYLVLRQWDNHVHIIHFW I 2WKHU,QVXUDQFH3ODQ)RUSXUSR VHVRIWKLV&2%SURYLVLRQ³2WKHU,QVXUDQFH3ODQ´ PHDQVDQ\RIWKHIROORZLQJZKLFKSURYLGHEHQHILWVRUVHUYLFHVIRURUEHFDXVHRIPHGLFDO RUGHQWDOFDUHRUWUHDWPHQW *URXSLQVXUDQFHRUJURXSW\SHFRYHUDJHZKHWKHULQVXUHGRUXQLQVXUHG ,QFOXGLQJVHOILQVXUHG WKDWLQFOXGHVFRQWLQXRXVKRXUFRYHUDJH7KLV LQFOXGHVSUHSD\PHQWJURXSSUDFWLFHLQGLYLGXDOSUDFWLFHFRYHUDJHDQGDV SHUPLWWHGE\VWDWHODZLQFOXGHVWKHPHGLFDOEHQHILWVLQDQDXWRPRELOH³QRIDXOW´ W\SHRUJURXSW\SHIDXOWSROLF\LQFOXGLQJFRYHUDJHRWKHUWKDQVFKRRODFFLGHQW W\SHFRYHUDJH &RYHUDJHXQGHUDJRYHUQPHQWDOSODQRUFRYHUDJHWKDWLVUHTXLUHGRUSURYLGHGE\ ODZLQFOXGLQJ7LWOH;9,,,0HGLFDUHFRYHUDJHWRWKHH[WHQWSHUPLWWHGE\IHGHUDO ODZ7KLVGRHVQRWLQFOXGHDVWDWHSODQXQGHU0HGLFDLG 7LWOH;,;*UDQWVWR VWDWHVIRU0HGLFDO$VVLVWDQFH3URJUDPVRUWKH8QLWHG6WDWHV6RFLDO6HFXULW\$FW DVDPHQGHGIURPWLPHWRWLPH ,WDOVRGRHVQRWLQFOXGHDQ\SODQZKRVHEHQHILWV E\ODZDUHH[FHVVWRWKRVHRIDQ\SULYDWHLQVXUDQFHRURWKHUQRQJRYHUQPHQWDO SURJUDP (DFKDJUHHPHQWRURWKHUDUUDQJHPHQWIRUFRYHUDJHXQGHU RU LVDVHSDUDWHSODQ ,IDQDUUDQJHPHQWKDVWZRSDUWVDQG&2%UXOHVDSSO\RQO\WRRQHRIWKHWZRHDFKRIWKH SDUWVLVDVHSDUDWHSODQ 2UGHURI%HQHILW'HWHUPLQDWLRQ5XOHV J :KHQWKHUHLVDEDVLVIRUDFODLPXQGHUWKLV3ODQDQGDQ2WKHU,QVXUDQFH3ODQ 7KLV3ODQLVD6HFRQGDU\3ODQZKLFKKDVLWVEHQHILWVGHWHUPLQHGDIWHUWKRVHRIDQ 2WKHU,QVXUDQFH3ODQXQOHVV x 7KH2WKHU,QVXUDQFH3ODQKDVUXOHVFRRUGLQDWLQJLWVEHQHILWVZLWKWKRVHRI WKLV3ODQDQG x %RWKWKRVHUXOHVDQGWKHUXOHVRIWKLV3ODQ GHVFULEHGLQSDUDJUDSK F UHTXLUHWKDWWKLV3ODQ¶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³SDUHQWV´ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] x 7KHEHQHILWVRIWKHSODQRIWKHSDUHQWZKRVHELUWKGD\IDOOVHDUOLHULQWKH &DOHQGDU<HDUDUHGHWHUPLQHGEHIRUHWKRVHRIWKHSODQRIWKHSDUHQW ZKRVHELUWKGD\IDOOVODWHULQWKH&DOHQGDU<HDUEXW x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x )LUVWWKHSODQRIWKHSDUHQWZLWKFXVWRG\RIWKHFKLOG x 7KHQWKHSODQRIWKHVSRXVHRIWKHSDUHQWZLWKFXVWRG\RIWKHFKLOG x )LQDOO\WKHSODQRIWKHSDUHQWQRWKDYLQJFXVWRG\RIWKHFKLOG +RZHYHULIWKHVSHFLILFWHUPVRIDFRXUWGHFUHHVWDWHWKDWRQHRIWKHSDUHQWVLV UHVSRQVLEOHIRUWKHKHDOWKFDUHH[SHQVHVRIWKHFKLOGDQGWKHHQWLW\REOLJDWHGWR SD\RUSURYLGHWKHEHQHILWVRIWKHSODQRIWKDWSDUHQWKDVDFWXDONQRZOHGJHRI WKRVHWHUPVWKHEHQHILWVRIWKDWSODQDUHGHWHUPLQHGILUVW7KLVSDUDJUDSKGRHV QRWDSSO\ZLWKUHVSHFWWRDQ\&ODLP'HWHUPLQDWLRQ3HULRGRUSODQ\HDUGXULQJ ZKLFKDQ\EHQHILWVDUHDFWXDOO\SDLGRUSURYLGHGEHIRUHWKHHQWLW\KDVWKDWDFWXDO NQRZOHGJH $FWLYH,QDFWLYH(PSOR\HH7KHEHQHILWVRIDSODQWKDWFRYHUVDSHUVRQDVDQ HP SOR\HHZKRLVQHLWKHUODLGRIIQRUUHWLUHG RUDVWKDWHPSOR\HH¶VGHSHQGHQW DUHGHWHUPLQHGEHIRUHWKRVHRIDSODQZKLFKFRYHUVWKDWSHUVRQDVDODLGRIIRU UHWLUHGHPSOR\HH RUDVWKDWHPSOR\HH¶VGHSHQGHQW ,IWKH2WKHU,QVXUDQFH3ODQ GRHVQRWKDYHWKLVUXOHDQGLIDVDUHVXOWWKHSODQVGRQRWDJUHHRQWKHRUGHURI EHQHILWVWKLVUXOH LVLJQRUHG /RQJHU6KRUWHU/HQJWKRI&RYHUDJH,IQRQHRIWKHDERYHUXOHVGHWHUPLQHVWKH RUGHURIEHQHILWVWKHEHQHILWVRIWKHSODQWKDWFRYHUHGWKH0HPEHUORQJHUDUH GHWHUPLQHGEHIRUHWKRVHRIWKHSODQWKDWFRYHUHGWKDW0HPEHUIRUWKHVKRUWHU WLPH (IIHFWRQWKH%HQHILWVRIWKLV3ODQ L :KHQWKLV6HFWLRQ$SSOLHV7KLVVHFWLRQDSSOLHVZKHQLQDFFRUGDQFHZLWKWKH[[2154,2414,2337,2467][11][,I,][Arial]]2UGHURI [[525,2466,1096,2519][11][,I,][Arial]]%HQHILW'HWHUPLQDWLRQ5XOHV [[1096,2466,1109,2518][11][,,][Arial]] [[1109,2466,1303,2518][11][,,][Arial]]VXEVHFWLR [[1303,2466,2337,2518][11][,,][Arial]]QWKLV 3ODQLVD6HFRQGDU\3ODQDVWRRQHRUPRUH 2WKHU,QVXUDQFH3ODQV,QWKDWHYHQWWKHEHQHILWVRIWKLV3ODQPD\EHUHGXFHGXQGHU WKLVVHFWLRQ6XFKRWKHUSODQRUSODQVLVDUHUHIHUUHGWRDV³2WKHU,QVXUDQFH3ODQV´LQ SDUDJUDSK E EHORZ M 5HGXFWLRQLQWKLV3ODQ¶V%HQHILWV7KHEHQHILWVRIWKLV3ODQZLOOEHUHGXFHGZKHQWKH VXPRIWKHIROORZLQJH[FHHGVWKH$OORZDEOH([SHQVHVLQD&ODLP'HWHUPLQDWLRQ3HULRG 7KHEHQHILWVWKDWZRXOGEHSD\DEOHIRUWKH$OORZDEOH([SHQVHVXQGHUWKLV3ODQLQ WKHDEVHQFHRIWKLV&2%SURYLVLRQDQG 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V UHSUHVHQWDWLYH(DFK0HPEHUFODLPLQJEHQHILWVXQGHUWKLV3ODQPXVWSURYLGHWKH3ODQZLWKDQ\ IDFWVLWQHHGVWRSD\WKHFODLP HRI x WKHSHUVRQVLWKDVSDLGRUIRUZKRPLWKDVSDLG x LQVXUDQFHFRPSDQLHVRU x RWKHURUJDQL]DWLRQV 7KH³DPRXQWRIWKHSD\PHQWPDGH´LQFOXGHVWKHUHDVRQDEOHFDVKYDOXHRIDQ\EHQHILWVSURYLGHG LQWKHIRUPRIVHUYLFHV 6XEURJDWLRQDQG5HLPEXUVHPHQW D ,IWKH3ODQSD\VEHQHILWVIRUPHGLFDORUGHQWDOH[SHQVHVD0HPEHULQFXUVDVDUHVXOWRI DQ\DFWRIDWKLUGSDUW\IRUZKLFKWKHWKLUGSDUW\LVRUPD\EHOLDEOHDQGWKH0HPEHUODWHU REWDLQVIXOOUHFRYHU\WKH0HPEHULVREOLJDWHGWRUHLPEXUVHWKH3ODQIRUWKHEHQHILWVSDLG LQDFFRUGDQFHZLWK0LQQHVRWD6WDWXWHV$DQG$ E 7KH3ODQ¶VULJKWWRUHLPEXUVHPHQWDQGVXEURJDWLRQLVVXEMHFWWRVXEWUDFWLRQIRUDFWXDO PRQLHVSDLGWRDFFRXQWIRUWKHSURUDWDVKDUHRIWKH0HPEHU¶VFRVWVGLVEXUVHPHQWVDQG UHDVRQDEOHDWWRUQH\IHHVDQGRWKHUH[SHQVHVLQFXUUHGLQREWDLQLQJWKHUHFRYHU\IURP DQRWKHUVRXUFHXQOHVVWKH3ODQLVVHSDUDWHO\UHSUHVHQWHGE\LWVRZQDWWRUQH\,IWKH3ODQ LVVHSDUDWHO\UHSUHVHQWHGE\DQDWWRUQH\WKH3ODQPD\HQWHULQWRDQDJUHHPHQWZLWKWKH 0HPEHUUHJDUGLQJWKH0HPEHU¶VFRVWVGLVEXUVHPHQWVDQGUHDVRQDEOHDWWRUQH\IHHV DQGRWKHUH[SHQVHV,IWKH3ODQDQGWKH0HPEHUFDQQRWUHDFKDJUHHPHQWRQVXFK DOORFDWLRQWKHPDWWHURIDOORFDWLRQVKDOOEHVXEPLWWHGWRELQGLQJDUELWUDWLRQ F 1RWKLQJKH UHLQVKDOOOLPLWWKH3ODQ¶VULJKWWRUHFRYHU\IURPDQRWKHUVRXUFHWKDWPD\ RWKHUZLVHH[LVWDWODZ)RUSXUSRVHVRIWKLVSURYLVLRQIXOOUHFRYHU\GRHVQRWLQFOXGH SD\PHQWVPDGHE\DKHDOWKSODQWRRUIRUWKH0HPEHU¶VEHQHILW7KH0HPEHULV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H[SHFWHGWRFRRSHUDWHZLWKWKH3ODQLQDVVLVWLQJWKH3ODQWRSURWHFWLWVOHJDOULJKWVXQGHU WKLVSURYLVLRQ G ,ID0HPEHUPDNHVDFODLPDJDLQVWDWKLUGSDUW\IRUGDPDJHVWKDWLQFOXGHUHSD\PHQWIRU PHGLFDODQGPHGLFDOO\UHODWHGH[SHQVHVLQFXUUHGIRUWKH0HPEHU¶VEHQHIL WWKH0HPEHU PXVWSURYLGHWLPHO\ZULWWHQQRWLFHWRWKH3ODQRIWKHSHQGLQJRUSRWHQWLDOFODLP7KH3ODQ PD\DWLWVRSWLRQWDNHVXFKDFWLRQDVPD\EHDSSURSULDWHDQGQHFHVVDU\WRSUHVHUYHLWV ULJKWVXQGHUWKLVVXEURJDWLRQSURYLVLRQLQFOXGLQJWKHULJKWWRLQWHUYHQHLQDQ\ODZVXLWWKH 0HPEHUKDVFRPPHQFHGZLWKDWKLUGSDUW\1RWZLWKVWDQGLQJDQ\RWKHUODZWRWKH FRQWUDU\WKHVWDWXWHRIOLPLWDWLRQVDSSOLFDEOHWRWKH3ODQ¶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¶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rial]]3OHDVHQRWH [[930,2728,943,2781][11][,I,][Arial]] [[975,2728,2336,2781][11][,I,][Arial]],ID0HPEHU$JHRUROGHULVFRYHUHGDVDUHWLUHHRU'HSHQGHQW [[675,2781,1107,2834][11][,I,][Arial]]RIDUHWLUHHDQGLVH [[1107,2781,2336,2834][11][,I,][Arial]]OLJLEOHIRURUHQWLWOHGWR0HGLFDUHEXWQRWDFWXDOO\FRYHUHG [[675,2834,2337,2887][11][,I,][Arial]]XQGHU0HGLFDUH3ODQEHQHILWVZLOOEHUHGXFHGE\WKHDPRXQW0HGLFDUHZRXOG [[675,2887,1727,2940][11][,I,][Arial]]KDYHSDLGLI0HGLFDUHFRYHUDJHKDGEHHQLQHIIHFW [[1728,2887,1741,2939][11][,,][Arial]] 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VPHGLFDOWUHDWPHQWIRU ZKLFKWKH3ODQZRXOGKDYHKDGDOHJDOOLDELOLW\WRSD\EHQHILWVXQGHUWKH3ODQZLOOEH SDLGLQDFFRUGDQFHZLWKDQ\DSSOLFDEOHVWDWHODZZKLFKSURYLGHVWKDWWKHVWDWHKDV DFTXLUHGWKHULJKWWRSD\PHQWIRUVXFKPHGLFDOWUHDWPHQW :RUNHUV¶&RPSHQVDWLRQ &RYHUDJHXQGHUWKH3ODQLVQRWLQOLHXRIZRUNHUV¶FRPSHQVDWLRQ DQGGRHVQRWDIIHFWDQ\DVSHFWRIFRYHUDJHXQGHUZRUNHUV¶FRPSHQVDWLRQ 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VPHGLFDOUHFRUGUHYLHZSURFHVVWKH3ODQ$GPLQLVWUDWRUPD\XVHLWV GLVFUHWLRQDU\DXWKRULW\WRXWLOL]HDQLQGHSHQGHQWELOOUHYLHZDQGRUFODLPDXGLWSURJUDPRUVHUYLFH IRUDFRPSOHWHFODLP$OOFODLPVDUHVXEMHFWWRELOOUHYLHZDQGRUDXGLW &ODLPVPD\EHUHYLHZHGDQGRUDXGLWHGWRLGHQWLI\FKDUJHVELOOHGLQHUURUDQGRUFKDUJHVWKDW DUHQRW8VXDODQG&XVWRPDU\DQGRU0HGLFDOO\1HFHVVDU\LIDQ\DQGPD\LQFOXGHDSDWLHQW PHGLFDOELOOLQJUHFRUGVUHYLHZDQGRUDXGLWRIWKHSDWLHQW¶VPHGLFDOFKDUWVDQGUHFRUGV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 8SRQFRPSOHWLRQRIDELOOUHYLHZDQGRUFODLPDXGLWDFODLPPD\EHUHSURFHVVHGDQGDQ\ H[FHVVSD\PHQWUHFRYHUHGRQEHKDOIRIWKH3ODQ (UURQHRXV3D\PHQWV ,IWKH3ODQPDNHVDSD\PHQWIRUEHQHILWVLQH[FHVVRIWKHEHQHILWVUHTXLUHGE\WKH3ODQRUPDNHV DSD\PHQWWRRURQEHKDOIRIDQLQGLYLGXDOZKRLVQRWFRYHUHGE\WKH3ODQWKH3ODQVKDOOEH HQWLWOHGWRUHFRYHUVXFKHUURQHRXVSD\PHQWIURPWKHUHFLSLHQWRIVXFKHUURQHRXVSD\PHQW DQGRUWKHEHQHILFLDU\RIVXFKHUURQHRXVSD\PHQW 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VULJKWWRUHFHLYHEHQHILWVKHUHXQGHULVSHUVRQDOWRWKDW0HPEHUDQGPD\ QRWEHDVVLJQHGRUEHVXEMHFWWRDQWLFLSDWLRQJDUQLVKPHQWDWWDFKPHQWH[HFXWLRQRUOHY\RI DQ\NLQGRUEHOLDEOHIRUWKHGHEWVRUREOLJDWLRQVRID0HPEHUH[FHSWIRUDVVLJQPHQWRIWKHULJKW WRUHFHLYHEHQHILWVWRD+HDOWKFDUH3URYLGHU:LWKUHVSHFWWRDQ\DVVLJQPHQWWRD+HDOWKFDUH 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3URYLGHUWKDW+HDOWKFDUH3URYLGHULVVXEMHFWWRWKHVDPHWHUPVDQGFRQGLWLRQVXQGHUWKLV3ODQ DVWKH0HPEHU 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $77$&+0(17$ +,3$$35,9$&<$1'6(&85,7< 'HILQLWLRQV 7KHWHUPVXVHGLQWKLV[[1283,558,1420,611][11][,I,][Arial]]+,3$$ [[1421,558,1434,610][11][,,][Arial]] [[1436,558,1871,611][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1875,558,2338,610][11][,,][Arial ]]DWWDFKPHQWVKDOOKDYH WKHGHILQLWLRQVDVFULEHGLQ+,3$$DQGLWVLPSOHPHQWLQJUHJXODWLRQV (PSOR\HU¶V&HUWLILFDWLRQRI&RPSOLDQFH 1HLWKHUWKH3ODQQRUDQ\KHDOWKLQVXUDQFH LVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJWKH3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWK LQIRUPDWLRQWRWKH(PSOR\HUXQOHVVWKH(PSOR\HUFHUWLILHVWKDWWKH3ODQGRFXPHQWVKDYH EHHQDPHQGHGWRLQFRUSRUDWHWKLV[[1223,847,1360,900][11][,I,][Arial]]+,3$$ [[1361,847,1374,899][11][,,][Arial]] [[1374,847,1805,900][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1805,847,2337,899][11][, ,][Arial]]DWWDFKPHQWDQGDJUHHVWR DELGHE\WKLV[[796,900,933,953][11][,I,][Arial]]+,3$$ [[933,900,946,952][11][,,][Arial]] [[946,900,1376,953][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1377,900,1616,952][11][,,][Arial]]DWWDFKPHQW [[1616,900,1629,952][11][,,][Arial]] 3XUSRVHRI'LVFORVXUHWR(PSOR\HU 7KH3ODQDQGDQ\KHDOWKLQVXUDQFHLVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJWKH 3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQWRWKH(PSOR\HURQO\WR SHUPLWWKH(PSOR\HUWRFDUU\RXWSODQDGPLQLVWUDWLRQIXQFWLRQVIRUWKH3ODQQRW LQFRQVLVWHQWZLWKWKHUHTXLUHPHQWVRIWKH+HDOWK,QVXUDQFH3RUWDELOLW\DQG $FFRXQWDELOLW\$FWRIDQGLWVLPSOHPHQWLQJUHJXODWLRQV &)53DUWV $Q\GLVFORVXUHWRDQGXVHE\WKH(PSOR\HURI0HPEHUV¶SURWHFWHGKHDOWK LQIRUPDWLRQZLOOEHVXEMHFWWRDQGFRQVLVWHQWZLWKWKHSURYLVLRQVRISDUDJUDSKV DQGRIWKLV[[938,1424,1075,1477][11][,I,][Arial]]+,3$$ [[1076,1424,1089,1476][11][,,][Arial]] [[1089,1424,1518,1477][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1519,1424,1758,1476][11][,,][Arial]]DW WDFKPHQW [[1758,1424,1771,1476][11][,,][Arial]] 1HLWKHUWKH3ODQQRUDQ\KHDOWKLQVXUDQFHLVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJ WKH3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQWRWKH(PSOR\HU XQOHVVWKHGLVFORVXUHVDUHH[SODLQHGLQWKH1RWLFHRI3ULYDF\3UDFWLFHVGLVWULEXWHG WR6XEVFULEHUV 1HLWKHUWKH3ODQQRUDQ\KHDOWKLQVXUDQFHLVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJ WKH3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQWRWKH(PSOR\HUIRU WKHSXUSRVHRIHPSOR\PHQWUHODWHGDFWLRQVRUGHFLVLRQVRULQFRQQHFWLRQZLWKDQ\ RWKHUEHQHILWRUHPSOR\HHEHQHILWSODQRIWKH(PSOR\HU 5HVWULFWLRQVRQ(PSOR\HU¶V8VHDQG'LVFORVXUHRI3URWHFWHG+HDOWK,QIRUPDWLRQ 7KH(PSOR\HUZLOOQHLWKHUXVHQRUIXUWKHUGLVFORVH0HPEHUV¶SURWHFWHGKHDOWK LQIRUPDWLRQH[FHSWDVSHUPLWWHGRUUHTXLUHGE\WKH3ODQGRFXPHQWVDV DPHQGHGRUUHTXLUHGE\ODZ 7KH(PSOR\HUZLOOHQVXUHWKDWDQ\DJHQWLQFOXGLQJDQ\VXEFRQWUDFWRUWRZKRPLW SURYLGHV0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQDJUHHVWRWKHUHVWULFWLRQVDQG FRQGLWLRQVRIWKH3ODQGRFXPHQWVLQFOXGLQJWKLV[[1726,2340,1804,2393][11][,I,][Arial]]+,3 [[1802,2340,1864,2393][11][,I,][Arial]]$$ [[1864,2340,1877,2392][11][,,][Arial]] [[1887,2340,2337,2393][11 ][,I,][Arial]]3ULYDF\DQG6HFXULW\ DWWDFKPHQWZLWKUHVSHFWWR0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQ 7KH(PSOR\HUZLOOQRWXVHRUGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQIRU HPSOR\PHQWUHODWHGDFWLRQVRUGHFLVLRQVRULQFRQQHFWLRQZLWKDQ\RWKHUEHQHILW RUHPSOR\HHEHQHILWSODQRIWKH(PSOR\HU 7KH(PSOR\HUZLOOUHSRUWWRWKH3ODQDQ\XVHRUGLVFORVXUHRI0HPE HUV¶SURWHFWHG KHDOWKLQIRUPDWLRQWKDWLVLQFRQVLVWHQWZLWKWKHXVHVDQGGLVFORVXUHVDOORZHG XQGHUWKLV[[909,2759,1046,2812][11][,I,][Arial]]+,3$$ [[1047,2759,1060,2811][11][,,][Arial]] [[1069,2759,1519,2812][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1530,2759,2337,2811][11][,,][Arial]]DWWDF KPHQWSURPSWO\XSRQOHDUQLQJRI VXFKLQFRQVLVWHQWXVHRUGLVFORVXUH 7KH(PSOR\HUZLOOPDNHSURWHFWHGKHDOWKLQIRUPDWLRQDYDLODEOHWRWKH0HPEHU ZKRLVWKHVXEMHFWRIWKHLQIRUPDWLRQLQDFFRUGDQFHZLWK&RGHRI)HGHUDO 5HJXODWLRQV 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 7KH(PSOR\HUZLOOPDNH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQDYDLODEOHIRU DPHQGPHQWDQGZLO ORQQRWLFHDPHQG0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQLQ DFFRUGDQFHZLWK&RGHRI)HGHUDO5HJXODWLRQV SOHPHQWDGPLQLVWUDWLYHSK\VLFDODQGWHFKQLFDOVDIHJXDUGV WKDWUHDVRQDEO\DQGDSSURSULDWHO\SURWHFWWKHFRQILGHQWLDOLW\ LQWHJULW\DQGDYDLODELOLW\RIWKHHOHFWURQLFSURWHFWHGKHDOWK LQIRUPDWLRQDQG HQVXUHWKDWDQ\DJHQWV LQFOXGLQJVXEFRQWUDFWRUV WRZKRPLW SURYLGHVVXFKHOHFWURQLFSURWHFWHGKHDOWKLQIRUPDWLRQDJUHHV WRLPSOHPHQWUHDVRQDEOHDQGDSSURSULDWHVHFXULW\PHDVXUHVWR SURWHFWWKHLQIRUPDWLRQ 7KH(PSOR\HUZLOOUHSRUWWRWKH3ODQDQ\VHFXULW\LQFLGHQWRIZKLFKLWEHFRPHV DZDUH $GHTXDWH6HSDUDWLRQ%HWZHHQWKH(PSOR\HUDQGWKH3ODQ 7KHHPSOR\HHVRUFODVVHVRIHPSOR\HHVRURWKHUZRUNIRUFHPHPEHUVXQGHUWKH FRQWURORIWKH(PSOR\HUDVOLVWHGLQWKH%XVLQHVV$VVRFLDWH$JUHHPHQWEHWZHHQ (PSOR\HUDQG0D\R&OLQLF+HDOWK6HUYLFHVPD\EHJLYHQDFFHVVWR0HPEHUV¶ SURWHFWHGKHDOWKLQIRUPDWLRQUHFHLYHGIURPWKH3ODQRUDKHDOWKLQVXUDQFHLVVXHU RUEXVLQHVVDVVRFLDWHVHUYLFLQJWKH3ODQ 7KHHPSOR\HHVFODVVHVRIHPSOR\HHVRURWKHUZRUNIRUFHPHPEHUVLGHQWLILHG DERYHZLOOKDYHDFFHVVWR0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQRQO\WRSHUI RUP WKHSODQDGPLQLVWUDWLRQIXQFWLRQVWKDWWKH(PSOR\HUSURYLGHVIRUWKH3ODQ 7KHHPSOR\HHVFODVVHVRIHPSOR\HHVRURWKHUZRUNIRUFHPHPEHUVLGHQWLILHG DERYHZLOOEHVXEMHFWWRGLVFLSOLQDU\DFWLRQDQGVDQFWLRQVLQFOXGLQJWHUPLQDWLRQRI 3DFNHW3J 'D [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] HPSOR\PHQWRUDIILOLDWLRQZLWKWKH(PSOR\HUIRUDQ\XVHRUGLVFORVXUHRI 0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQLQEUHDFKRUYLRODWLRQRIRUQRQFRPSOLDQFH ZLWKWKHSURYLVLRQVRIWKLV[[1204,406,1341,459][11][,I,][Arial]]+,3$$ [[1342,406,1355,458][11][,,][Arial]] [[1355,406,1787,459][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1789,406,2054,458][11][,,][Ar ial]]DWWDFKPHQW [[2055,406,2248,458][11][,,][Arial]](PSOR\HU [[2249,406,2262,458][11][,,][Arial]] [[2262,406,2338,458][11][,,][Arial]]ZLOO SURPSWO\UHSRUWVXFKEUHDFKYLRODWLRQRUQRQFRPSOLDQFHWRWKH3ODQDVUHTXLUHG E\SDUDJUDSK G RIWKLV[[1256,512,1393,565][11][,I,][Arial]]+,3$$ [[1394,512,1407,564][11][,,][Arial]] [[1420,512,1878,565][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1893,512,2337,564][11][,,][Arial]]DWWDFKPHQWDQ GZLOO FRRSHUDWHZLWKWKH3ODQWRFRUUHFWWKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFHWR LPSRVHDSSURSULDWHGLVFLSOLQDU\DFWLRQRUVDQFWLRQVRQHDFKHPSOR\HHRURWKHU ZRUNIRUFHPHPEHUFDXVLQJWKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFHDQGWR PLWLJDWHDQ\GHOHWHULRXVHIIHFWRIWKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFHRQDQ\ 3DUWLFLSDQWWKHSULYDF\RIZKRVHSURWHFWHGKHDOWKLQIRUPDWLRQPD\KDYHEHHQ FRPSURPLVHGE\WKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFH 7KH(PSOR\HUZLOOHQVXUHWKDWWKHSURYLVLRQVRIWKLV[[1877,905,2337,958][11][,I,][Arial]]$GHTXDWH6HSDUDWLRQ [[675,958,949,1011][11][,I,][Arial]]%HWZHHQWKH [[957,958,1155,1011][11][,I,][Arial]](PSOR\HU [[1151,958,1164,1011][11][,I,][Arial]] [[1170,958,1441,1011][11][,I,][Arial]]DQGWKH3ODQ [[1441,958,1454,1010][11][,,][Arial]] [[1460,958,2338,1010][11][,,][Arial]]VHFWLRQDUHVXSSRUWHGE\UHDVRQDEOHDQG DSSURSULDWHVHFXULW\PHDVXUHVWRWKHH[WHQWWKDWWKHHPSOR\HHVRUFODVVHVRI HPSOR\HHVRURWKHUZRUNIRUFHPHPEHUVQDPHGDERYHKDYHDFFHVVWRHOHFWURQLF SURWHFWHGKHDOWKLQIRUPDWLRQ 3DFNHW3J 'E 3/$1'2&80(17DQG6800$5<%(1(),7'(6&5,37,21 2)7+( &LW\RI5RFKHVWHU(PSOR\HH0HGLFDO%HQHILW+LJK'HGXFWLEOH+HDOWK3ODQ (IIHFWLYH-DQXDU\ 3DFNHW3J 'E 7$%/(2)&217(176 6(&7,21,,1752'8&7,21 6(&7,21,,&2%5$127,&(2)5,*+76 $77$&+0(17$+,3$$35,9$&<$1'6(&85,7< &LW\RI5RFKHVWHU±+LJK'HGXFWLEOH+HDOWK3ODQ 3ODQ'RFXPHQWDQG6XPPDU\%HQHILW'HVFULSWLRQ 3DFNHW3J 'E 6(&7,21, ,1752'8&7,21 (VWDEOLVKPHQWRIWKH3ODQ$GRSWLRQRIWKH3ODQ'RFXPHQWDQG6XPPDU\%HQHILW'HVFULSWLRQ 7+,63/$1'2&80(17$1'6800$5<%(1(),7'(6&5,37,21PDGHE\&LW\RI5RFKHVWHU WKH ³(PSOR\HU´ DVRI-DQXDU\KHUHE\HVWDEOLVKHVWKH&LW\RI5RFKHVWHU(PSOR\HH0HGLFDO%HQHILW +LJK'HGXFWLEOH+HDOWK3ODQ WKH³3ODQ´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imes New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 3/$1,1)250$7,21 (PSOR\HUKDVHVWDEOLVKHGWKH&LW\RI5RFKHVWHU(PSOR\HH0HGLFDO%HQHILW+LJK'HGXFWLEOH+HDOWK3ODQ KHUHLQDIWHU³3ODQ´ LQRUGHUWRSURYLGHFRPSUHKHQVLYHKHDOWKFDUHEHQHILWVIRU(OLJLEOH(PSOR\HHVDQG WKHLU'HSHQGHQWV 7KH3ODQLVDVHOILQVXUHGSXEOLFVHFWRUSODQZLWKLQWKHPHDQLQJRI016WDWXWHPHG\SRVVLEOHDPELJXLWLHVLQFRQVLVWHQFLHVDQGRURPLVVLRQVLQWKH 3ODQDQGUHODWHGGRFXPHQWVWRPDNHGHWHUPLQDWLRQVLQUHJDUGVWRLVVXHVUHODWLQJWRHOLJLELOLW\IRU EHQHILWVWRGHFLGHGLVSXWHVWKDWPD\DULVHUHODWLYHWRD3ODQ3DUWLFLSDQWV¶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¶V UHVSRQVLELOLW\6HHWKH[[775,2710,1256,2763][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[1253,2710,1266,2762][11][,,][Arial]] [[1266,2710,2182,2762][11][,,][Arial]]VHFWLRQIRUDOLVWRIVHUYLFHVWKDW UHTXLUH3ULRU $XWKRUL]DWLRQDQGGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ 7KLV3ODQLV³VHOILQVXUHG´ZKLFKPHDQVEHQHILWVDUHSDLGIURPWKH(PSOR\HUV¶JHQHUDODVVHWV7KH (PSOR\HUDQGWKH3ODQ$GPLQLVWUDWRUKDYHFRQWUDFWHGZLWKWKH&ODLPV$GPLQLVWUDWRUWRSHUIRUPFHUWDLQ 3DFNHW3J 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] FRQVXOWDWLYHDQGPDQDJHPHQWVHUYLFHVUHODWHGWRWKLV3ODQ7KH&LW\$GPLQLVWUDWRULVWKH3ODQ $GPLQLVWUDWRUDQGQDPHGILGXFLDU\RIWKLV3ODQDQGWKHUHE\UHWDLQVXOWLPDWHDXWKRULW\IRUWKLV3ODQ 0D\R&OLQLF+HDOWK6ROXWLRQVLVWKH&ODLPV$GPLQLVWUDWRUDQGZLOOSURFHVVFODLPVPDQDJHWKH0D\R &OLQLF+HDOWK6ROXWLRQVQHWZRUNRI+HDOWKFDUH3URYLGHUVDQGDQVZHUPHGLFDOEHQHILWDQGFODLP TXHVWLRQV0D\R&OLQLF+HDOWK6ROXWLRQVZLOOEHUHIHUUHGWRDVWKH&ODLPV$GPLQLVWUDWRUWKURXJKRXWWKLV 6%' 7KH&ODLPV$GPLQLVWUDWRU¶VFXVWRPHUVHUYLFHUHSUHVHQWDWLYHVDUHDYDLODEOHWRDQVZHUDQ\TXHVWLRQVRU FRQFHUQVUHJDUGLQJWKLV3ODQ3KRQHOLQHVDUHRSHQIURP 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] )RUHQUROOPHQWRUHOLJLELOLW\TXHVWLRQVSOHDVHFRQWDFW&LW\RI5RFKHVWHU 48(67,216 &XVWRPHU6HUYLFH WROOIUHH 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 3/$1$'0,1,675$7,9(,1)250$7,21 3ODQ1DPH&LW\RI5RFKHVWHU(PSOR\HH0HGLFDO%HQHILW+LJK 'HGXFWLEOH+HDOWK3ODQ (PSOR\HU $JHQWIRU6HUYLFHRI&LW\RI5RFKHVWHU WK /HJDO3URFHVV6WUHHW6(5RRP 5RFKHVWHU01 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 6(&7,21,, &2%5$127,&(2)5,*+76 ,QLWLDO1RWLFHRI&2%5$&RQWLQXDWLRQ&RYHUDJH5LJKWV ,QWURGXFWLRQ 3ODQEHFDXVHHLWKHURQHRIWKHIROORZLQJTXDOLI\LQJ HYHQWVKDSSHQV <RXDUHUHFHLYLQJWKLVQRWLFHEHFDXVH\RXKDYH x UHFHQWO\EHFRPHFRYHUHGXQGHUWKH&LW\RI <RXUKRXUVRIHPSOR\PHQWDUHUHGXFHGRU 5RFKHVWHU¶VJURXSKHDOWKSODQ WKH3ODQ 7KLV x <RXUHPSOR\PHQWHQGVIRUDQ\UHDVRQRWKHU QRWLFHFRQWDLQVLPSRUWDQWLQIRUPDWLRQDERXW\RXU WKDQ\RXUJURVVPLVFRQGXFW ULJKWWR&2%5$FRQWLQXDWLRQFRYHUDJHZKLFKLVD WHPSRUDU\H[WHQVLRQRIFRYHUDJHXQGHUWKH3ODQ ,I\RXDUHWKHVSRXVHRIDQHPSOR\HH\RXZLOO 7KLVQRWLFHJHQHUDOO\H[SODLQV&2%5$ EHFRPHDTXDOLILHGEHQHILFLDU\LI\RXORVH\RXU FRQWLQXDWLRQFRYHUDJHZKHQLWPD\EHFRPH FRYHUDJHXQGHUWKH3ODQEHFDXVHDQ\RIWKH DYDLODEOHWR\RXDQG\RXUIDPLO\DQGZKDW\RX IROORZLQJTXDOLI\LQJHYHQWVKDSSHQV QHHGWRGRWRSURWHFWWKHULJKWWRUHFHLYHLW x <RXUVSRXVHGLHV 7KHULJKWWR&2%5$FRQWLQXDWLRQFRYHUDJHZDV x <RXUVSRXVH¶VKRXUVRIHPSOR\PHQWDUH FUHDWHGE\DIHGHUDOODZWKH&RQVROLGDWHG UHGXFHG 2PQLEXV%XGJHW5HFRQFLOLDWLRQ$FWRI x <RXUVSRXVH¶VHPSOR\PHQWHQGVIRUDQ\ &2%5$ &2%5$FRQWLQXDWLRQFRYHUDJHFDQ UHDVRQRWKHUWKDQKLVRUKHUJURVV EHFRPHDYDLODEOHWR\RXZKHQ\RXZRXOGRWKHUZLVH PLVFRQGXFW ORVH\RXUJURXSKHDOWKFRYHUDJH,WFDQDOVR x <RXUVSRXVHEHFRPHVHQWLWOHGWR0HGLFDUH EHFRPHDYDLODEOHWRRWKHUPHPEHUVRI\RXUIDPLO\ EHQHILWV XQGHU3DUW$3DUW%RUERWK RU ZKRDUHFRYHUHGXQGHUWKH3ODQZKHQWKH\ZRXOG x <RXEHFRPHGLYRUFHGRUOHJDOO\VHSDUDWHG RWKHUZLVHORVHWKHLUJURXSKHDOWKFRYHUDJH)RU IURP\RXUVSRXVH DGGLWLRQDOLQIRUPDWLRQDERXW\RXUULJKWVDQG REOLJDWLRQVXQGHUWKH3ODQDQGXQGHUIHGHUDOODZ <RXUGHSHQGHQWFKLOGUHQZLOOEHFRPHTXDOLILHG \RXVKRXOGUHYLHZWKH3ODQ¶V6XPPDU\3ODQ EHQHILFLDULHVLIWKH\ORVHFRYHUDJHXQGHUWKH 'HVFULSWLRQRUFRQWDFWWKH3ODQ$GPLQLVWUDWRU 3ODQEHFDXVHDQ\RIWKHIROORZLQJTXDOLI\LQJ HYHQWVKDSSHQV :KDWLV&2%5$&RQWLQXDWLRQ&RYHUDJH" x 7KHSDUHQWHPSOR\HHGLHV &2%5$FRQWLQXDWLRQFRYHUDJHLVDFRQWLQXDWLRQRI x 7KHSDUHQWHPSOR\HH¶VKRXUVRIHPSOR\PHQW 3ODQFRYHUDJHZKHQFRYHUDJHZRXOGRWKHUZLVHHQG DUHUHGXFHG EHFDXVHRIDOLIHHYHQWNQRZQDVD³TXDOLI\LQJ x 7KHSDUHQWHPSOR\HH¶VHPSOR\PHQWHQGVIRU HYHQW´6SHFLILFTXDOLI\LQJHYHQWVDUHOLVWHGODWHULQ DQ\UHDVRQRWKHUWKDQKLVRUKHUJURVV WKLVQRWLFH$IWHUDTXDOLI\LQJHYHQW&2%5$ PLVFRQGXFW FRQWLQXDWLRQFRYHUDJHPXVWEHRIIHUHGWRHDFK x 7KHSDUHQWHPSOR\HHEHFRPHVHQWLWOHGWR SHUVRQZKRLVD³TXDOLILHGEHQHILFLDU\´<RX\RXU 0HGLFDUHEHQHILWV 3DUW$3DUW%RUERWK VSRXVHDQG\RXUGHSHQGHQWFKLOGUHQFRXOG x 7KHSDUHQWVEHFRPHGLYRUFHGRUOHJDOO\ EHFRPHTXDOLILHGEHQHILFLDULHVLIFRYHUDJHXQGHU VHSDUDWHGRU WKH3ODQLVORVWEHFDXVHRIWKHTXDOLI\LQJHYHQW x 7KHFKLOGVWRSVEHLQJHOLJLEOHIRUFRYHUDJH 8QGHUWKH3ODQTXDOLILHGEHQHILFLDULHVZKRHOHFW XQGHUWKHSODQDVD³GHSHQGHQWFKLOG´ &2%5$FRQWLQXDWLRQFRYHUDJHPXVWSD\IRU &2%5$FRQWLQXDWLRQFRYHUDJH 6RPHWLPHVILOLQJDSURFHHGLQJLQEDQNUXSWF\XQGHU WLWOHRIWKH8QLWHG6WDWHV&RGHFDQEHD ,I\RXDUHDQHPSOR\HH\RXZLOOEHFRPHDTXDOLILHG TXDOLI\LQJHYHQW,IDSURFHHGLQJLQEDQNUXSWF\LV EHQHILFLDU\LI\RXORVH\RXUFRYHUDJHXQGHUWKH ILOHGZLWKUHVSHFWWRWKH&LW\RI5RFKHVWHUDQGWKDW 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] EDQNUXSWF\UHVXOWVLQWKHORVVRIFRYHUDJHRIDQ\GHHPHGWLPHO\LIWKH3ODQLVDEOHWRGHWHUPLQHWKH UHWLUHGHPSOR\HHFRYHUHGXQGHUWKH3ODQWKHSODQWRZKLFKLWDSSOLHVWKHLGHQWLW\RIWKHHPSOR\HH UHWLUHGHPSOR\HHZLOOEHFRPHDTXDOLILHGEHQHILFLDU\DQGWKHTXDOLILHGEHQHILFLDULHVWKHTXDOLI\LQJHYHQW ZLWKUHVSHFWWRWKHEDQNUXSWF\7KHUHWLUHGDQGWKHGDWHRQZKLFKWKHTXDOLI\LQJHYHQW HPSOR\HH¶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¶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¶VKRXUVRIHPSOR\PHQW SHULRGQRH[WHQVLRQRIWKHFRQWLQXDWLRQZLOOEH&2%5$FRQWLQXDWLRQFRYHUDJHJHQHUDOO\ODVWVIRU SURYLGHG,IWKHQRWLILFDWLRQLVLQFRPSOHWHLWZLOOEHRQO\XSWRDWRWDORIPRQWKV7KHUHDUHWZR 3DFNHW3J 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] ZD\VLQZKLFKWKLVPRQWKSHULRGRI&2%5$VXFKGHWHUPLQDWLRQRU WKHGDWHRQZKLFKWKH FRQWLQXDWLRQFRYHUDJHFDQEHH[WHQGHGTXDOLILHGEHQHILFLDU\ZDVLQIRUPHGRIWKH [[150,362,163,414][11][B,I,][Arial]] [[1350,362,2072,414][11][,,][Arial]]UHVSRQVLELOLW\WRSURYLGHQRWLFHDQG [[2073,362,2086,414][11][,,][Arial]] [[2090,362,2412,414][11][,,][Arial]]WKHSURFHGXUHV [[150,414,783,466][11][B,I,][Arial]]'LVDELOLW\H[WHQVLRQRI [[782,414,797,466][11][B,I,][Arial]] [[797,414,1212,466][11][B,I,][Arial]]PRQWKSHULRGRI [[1350,414,2412,466][11][,,][Arial]]IRUGRLQ JVR7KHQRWLILFDWLRQPXVWEHSURYLGHGLQ [[150,467,586,519][11][B,I,][Arial]]FRQWLQXDWLRQFRYHUD [[586,467,640,519][11][B,I,][Arial]]JH [[639,467,652,519][11][B,I,][Arial]] [[1349,467,2412,519][11][,,][Arial]]ZULWLQJDQGEHPDLOHGWRWKH3 ODQDWWKHDGGUHVV LGHQWLILHGEHORZ ,I\RXRUDQ\RQHLQ\RXUIDPLO\FRYHUHGXQGHUWKH 3ODQLVGHWHUPLQHGE\WKH6RFLDO6HFXULW\[[1350,625,1363,677][11][B,I,][Arial]] $GPLQLVWUDWLRQWREHGLVDEOHGDQG\RXQRWLI\WKH[[1350,678,2245,730][11][B,I,][Arial]]6HFRQGTXDOLI\LQJHYHQWH[WHQVLRQRI [[2246,678,2261,730][11][B,I,][Arial]] [[2261,678,2413,730][11][B,I,][A rial]]PRQWK 3ODQ$GPLQLVWUDWRULQDWLPHO\IDVKLRQ\RXDQG\RXU[[1350,730,2048,782][11][B,I,][Arial]]SHULRGRIFRQWLQXDWLRQFRYHUDJH [[2048,730,2061,782][11][B,I,][Arial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¶V(PSOR\HH%HQHILWV6HFXULW\ DQGWKHTXDOLILHGEHQHILFLDULHVWKHTXDOLI\LQJHYHQW$GPLQLVWUDWLRQ (%6$ LQ\RXUDUHDRUYLVLWWKH DQGWKHGDWHRQZKLFKWKHTXDOLI\LQJHYHQW(%6$ZHEVLWHDWZZZGROJRYHEVD $GGUHVVHV RFFXUUHGSURYLGHGWKDWWKHPLVVLQJLQIRUPDWLRQLVDQGSKRQHQXPEHUVRI5HJLRQDODQG'LVWULFW(%6$ SURYLGHGZLWKLQWKLUW\ GD\V,IWKHPLVVLQJ2IILFHVDUHDYDLODEOHWKURXJK(%6$¶VZHEVLWH LQIRUPDWLRQLVQRWSURYLGHGZLWKLQWKDWWLPHWKH .HHS<RXU3ODQ,QIRUPHGRI$GGUHVV&KDQJHV QRWLILFDWLRQZLOOEHLQHIIHFWLYHDQGQRH[WHQVLRQRI WKHFRQWLQXDWLRQSHULRGZLOOEHSURYLGHG ,QRUGHUWRSURWHFW\RXUIDPLO\¶VULJKWV\RXVKRXOG ,IVXFKSHUVRQKDVEHHQGHWHUPLQHGXQGHUWKHNHHSWKH3ODQ$GPLQLVWUDWRULQIRUPHGRIDQ\ 6RFLDO6HFXULW\$FWWRQRORQJHUEHGLVDEOHGWKHFKDQJHVLQWKHDGGUHVVHVRIIDPLO\PHPEHUV<RX SHUVRQPXVWQRWLI\WKH3ODQRIWKDWGHWHUPLQDWLRQVKRXOGDOVRNHHSDFRS\IRU\RXUUHFRUGVRIDQ\ ZLWKLQWKLUW\ GD\VRIWKHODWHURI WKHGDWHRIQRWLFHV\RXVHQGWRWKH3ODQ$GPLQLVWUDWRU 3DFNHW3J 'E [[150,150,161,198][10][,I,][Times New Roman]] [[2251,150,2262,198][10][,I,][Times New Roman]] 3ODQ&RQWDFW,QIRUPDWLRQ 7KHHPSOR\HUDGPLQLVWHUVLWVRZQ&2%5$ UHVSRQVLELOLWLHV$OOTXHVWLRQVQRWLFHVDQGRWKHU FRPPXQLFDWLRQVUHJDUGLQJ&2%5$DQGWKH3ODQ VKRXOGEHGLUHFWHGWR &LW\RI5RFKHVWHU +XPDQ5HVRXUFHV'HSDUWPHQW %HQHILWVDQG6DIHW\$GPLQLVWUDWRU WK 6WUHHW6(5RRP 5RFKHVWHU01 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21,,, :20(1¶6+($/7+$1'&$1&(55,*+76$&7 :20(1¶6+($/7+$1'&$1&(55,*+76$&7 0HGLFDODQGVXUJLFDOEHQHILWVWRZRPHQZKRKDYHXQGHUJRQHDPDVWHFWRP\ DVXUJLFDOSURFHGXUHWR UHPRYHWKHEUHDVWRUEUHDVWWLVVXH ZHUHH[SDQGHGXQGHUWKHIHGHUDO:RPHQ¶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rial]]6FKHGXOHRI%HQHILWV [[2216,1096,2229,1148][11][,,][Arial]] [[2229,1096,2242,1148][1 1][,,][Arial]] 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21,9 '(),1,7,216 7KLVVHFWLRQGHILQHVWKHWHUPVXVHGLQWKLV3ODQ7KHVHWHUPVZLOOEHFDSLWDOL]HGWKURXJKRXWWKLV3ODQ ZKHQUHIHUUHGWRLQWKHFRQWH[WGHILQHG7KHUHPD\EHRWKHUWHUPVGHILQHGLQVSHFLILFVHFWLRQVRIWKLV 3ODQ $OORZHG&KDUJH 7KHPD[LPXPGROODUDPRXQWHOLJLEOHIRUSD\PHQWIRUDSURFHGXUHRU VHUYLFHDVGHWHUPLQHGE\WKLV3ODQ7KLV,QFOXGHVELOOHGFKDUJHVFRQWUDFWHGDPRXQWVRU 8VXDODQG&XVWRPDU\5DWHVGHSHQGLQJRQWKH+HDOWKFDUH3URYLGHU¶VUHODWLRQVKLSZLWK WKLV3ODQDQGRUWKH+HDOWKFDUH6HUYLFHVSURYLGHG $PEXODQFH $VSHFLDOO\GHVLJQHGRUHTXLSSHGYHKLFOHXVHGRQO\IRUWUDQVSRUWLQJWKH FULWLFDOO\LOORULQMXUHGWRDKHDOWKFDUHIDFLOLW\7KHDPEXODQFHVHUYLFHPXVWPHHWVWDWHDQG ORFDOUHTXLUHPHQWVIRUSURYLGLQJWUDQVSRUWDWLRQRIWKHVLFNRULQMXUHGDQGPXVWEH RSHUDWHGE\TXDOLILHGSHUVRQQHOZKRDUHWUDLQHGLQWKHDSSOLFDWLRQRIEDVLFOLIHVXSSRUW $SSURYHG&OLQLFDO7ULDO ±$SKDVH,,,,,,RU,9WULDOWKDWLVIHGHUDOO\IXQGHGE\VSHFLILHG $JHQFLHV 1DWLRQDO,QVWLWXWHVRI+HDOWK&'&3$JHQF\IRU+HDOWK&DUH5HVHDUFK&06 'HSWRI'HIHQVHRU9HWHUDQV$IIDLUVRUDQRQJRYHUQPHQWDOHQWLW\LGHQWLILHGE\1,+ JXLGHOLQHV RULVFRQGXFWHGXQGHUDQLQYHVWLJDWLRQDOQHZGUXJDSSOLFDWLRQUHYLHZHGE\ WKH)'$ LIVXFKDSSOLFDWLRQLVUHTXLUHG &ODLPV$GPLQLVWUDWRU $WKLUGSDUW\UHWDLQHGE\WKH3ODQ$GPLQLVWUDWRUDQG(PSOR\HU 7KH&ODLPV$GPLQLVWUDWRU¶VUHVSRQVLELOLWLHVW\SLFDOO\FRQVLVWRILQLWLDOO\GHWHUPLQLQJWKH YDOLGLW\RIFODLPVDQGDGPLQLVWHULQJEHQHILWSD\PHQWVXQGHUWKLV3ODQ7KHDFWXDO UHVSRQVLELOLWLHVRIWKH&ODLPV$GPLQLVWUDWRUDUHGHVFULEHGLQWKHFRQWUDFWEHWZHHQWKH 3ODQ$GPLQLVWUDWRU(PSOR\HUDQG&ODLPV$GPLQLVWUDWRU7KH&ODLPV$GPLQLVWUDWRULV 0D\R&OLQLF+HDOWK6ROXWLRQV &2%5$ &RQVROLGDWHG2PQLEXV%XGJHW5HFRQFLOLDWLRQ$FWRIDVDPHQGHGIURP WLPHWRWLPH &RGH 7KH,QWHUQDO5HYHQXH&RGHRIDVDPHQGHGIURPWLPHWRWLPH 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3URYLGHUVPD\ELOOD0HPEHUGLUHFWO\RUUHTXHVWSD\PHQWRI&RVW6KDULQJ$PRXQWVDWWKH WLPH&RYHUHG6HUYLFHVDUHSURYLGHG &RLQVXUDQFH D 7KHFKDUJHD0HPEHUPXVWSD\IRUFHUWDLQ&RYHUHG6HUYLFHVDIWHUDQ\ DSSOLFDEOH'HGXFWLEOHVDQG&RSD\PHQWVKDYHEHHQSDLGDQGXQWLOWKH$QQXDO2XWRI 3RFNHW0D[LPXPKDVEHHQUHDFKHG&RYHUHG6HUYLFHVVXEMHFWWR&RLQVXUDQFHDQGWKH DPRXQWVDUHOLVWHGLQWKH[[1038,617,1458,670][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1458,617,1471,669][11][,,][Arial]] [[1471,617,2300,669][11][,,][Arial]]VHFWLRQ&RLQVXUDQFHLVDSHUFHQWDJHRI WKH$OORZHG&KDUJH,QVRPHLQVWDQFHVWKH0HPEHUZLOOEHUHVSRQVLEOHDWWKHWLPHDQG SODFHRIVHUYLFHWRSD\DQ\&RLQVXUDQFHGLUHFWO\WRWKH+HDOWKFDUH3URYLGHU,QRWKHU LQVWDQFHVWKH0HPEHUZLOOEHELOOHGE\WKH+HDOWKFDUH3URYLGHU7KHVHDUUDQJHPHQWV DUHEHWZHHQWKH0HPEHUDQGWKH+HDOWKFDUH3URYLGHU &RSD\PHQW E 7KHFKDUJHD0HPEHUPXVWSD\IRUFHUWDLQ&RYHUHG6HUYLFHV&RYHUHG 6HUYLFHVVXEMHFWWRD&RSD\PHQWDQGWKHDPRXQWVDUHOLVWHGLQWKH[[1886,986,2306,1039][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[2306,986,2319,1038][11][,,][Arial]] VHFWLRQ$&RSD\PHQWLVDIODWGROODUDPRXQW,QVRPHLQVWDQFHVWKH0HPEHUZLOOEH UHVSRQVLEOHDWWKHWLPHDQGSODFHRIVHUYLFHWRSD\DQ\&RSD\PHQWGLUHFWO\WRWKH +HDOWKFDUH3URYLGHU,QRWKHULQVWDQFHVWKH0HPEHUZLOOEHELOOHGE\WKH+HDOWKFDUH 3URYLGHU7KHVHDUUDQJHPHQWVDUHEHWZHHQWKH0HPEHUDQGWKH+HDOWKFDUH3URYLGHU &RSD\PHQWVGRQRWFRXQWWRZDUGWKH'HGXFWLEOH 'HGXFWLEOH F 7KHDJJUHJDWHDPRXQWIRUFHUWDLQ&RYHUHG6HUYLFHVWKDWLVD0HPEHU¶V UHVSRQVLELOLW\HDFK&RYHUDJH<HDUEHIRUHWKLV3ODQZLOOEHJLQWRSD\IRU&RYHUHG 6HUYLFHV&RSD\PHQWVGRQRWFRXQWWRZDUGWKH'HGXFWLEOH $QQXDO2XWRI3RFNHW0D[LPXP G 7KHWRWDO'HGXFWLEOH&RLQVXUDQFHDQG&RSD\PHQW DPRXQWVIRUFHUWDLQ&RYHUHG6HUYLFHVWKDWDUHD0HPEHU¶VUHVSRQVLELOLW\GXULQJD &RYHUDJH<HDU7KHIROORZLQJDPRXQWVDUH[[1410,1671,1476,1724][11][,I,][Arial]]QRW [[1473,1671,1486,1723][11][,,][Arial]] [[1486,1671,2173,1723][11][,,][Arial]]FRQVLGHUHGRUWDNHQLQWRDFFRXQW &KDUJHVWKDWDUHQRW&RYHUHG6HUYLFHVXQGHUWKLV3ODQ HJFKDUJHVZKLFKH[FHHG 8VXDODQG&XVWRPDU\5DWHVDQGFRVWVSDLGE\WKH0HPEHUDVDUHVXOWRIWKH0HPEHU¶V IDLOXUHWRFRPSO\ZLWK3ULRU$XWKRUL]DWLRQUHTXLUHPHQWV FKDUJHVLQH[FHVVRI3ODQ PD[LPXPV:KHQWKH$QQXDO2XWRI3RFNHW0D[LPXPLVPHWWKLV3ODQZLOOSD\RI WKH$OORZHG&KDUJHIRUFHUWDLQ&RYHUHG6HUYLFHVLQFXUUHGGXULQJWKHUHPDLQGHURIWKH &RYHUDJH<HDU7KH$QQXDO2XWRI3RFNHW0D[LPXPUHQHZVRQWKH3ODQDQQLYHUVDU\RI HDFKFRQVHFXWLYH&RYHUDJH<HDU &RYHUDJH<HDU 7KHWLPHSHULRGQRWWRH[FHHGWZHOYH PRQWKVIURPWKHHIIHFWLYH GDWHRIWKLV3ODQWRWKHDQQLYHUVDU\GDWH$OOVXEVHTXHQW&RYHUDJH<HDUVVKDOOEHJLQRQ WKHDQQLYHUVDU\GDWHDQGFRQVLVWRIDSHULRGRIQRWPRUHWKDQWZHOYH PRQWKV7KLV 3ODQ¶V&RYHUDJH<HDULV-DQXDU\WKURXJK'HFHPEHU &RYHUHG6HUYLFH ±+HDOWKFDUH6HUYLFHVGHVFULEHGLQWKH[[1695,2408,2115,2461][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[2116,2408,2129,2460][11][,,][Arial]] [[2128,2408,2286,2460][11][,,][Arial]]VHFWLRQ [[2287,2408,2350,2460][11][,,][Arial]] IRUZKLFK3ODQEHQHILWVZLOOEHSURYLGHGXQOHVVOLPLWHGRUH[FOXGHGLQWKH[[2006,2462,2225,2515][11][,I,][Arial]]([FOXVLRQV [[2225,2462,2238,2514][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] WUDLQHGDQGRUOLFHQVHGPHGLFDOSHUVRQQHORUSDUDPHGLFDOSHUVRQQHO&XVWRGLDO&DUH DOVRLQFOXGHVUHVWFXUHVDQGKRPHFDUHSURYLGHGE\IDPLO\PHPEHUV 'HSHQGHQW $GHSHQGHQWRIWKH6XEVFULEHUZKRTXDOLILHVIRUPHPEHUVKLSXQGHUWKLV 3ODQLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVVSHFLILHGEHORZ D $6SRXVH E 7 KH6XEVFULEHU¶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¶VJUDQGFKLOGZKRLVILQDQFLDOO\GHSHQGHQWXSRQ WKHFRYHUHGJUDQGSDUHQWDQGZKRUHVLGHVZLWKWKDW FRYHUHGJUDQGSDUHQWFRQWLQXRXVO\IURPELUWK8SRQ UHTXHVWRIWKH(PSOR\HUWKH6XEVFULEHUPXVWSURYLGH VDWLVIDFWRU\SURRIRIUHVLGHQFHDQGGHSHQGHQF\ J )RVWHUFKLOG 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] F 7 KH6XEVFULEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]] (QUROOPHQW'DWH 7 KHGDWHRIWKH(OLJLEOH(PSOR\HH¶VRU'HSHQGHQW¶VILUVWGD\RI FRYHUDJHXQGHUWKLV3ODQRULIHDUOLHUWKHILUVWGD\RIWKH:DLWLQJ3HULRGIRUWKH(OLJLEOH (PSOR\HH¶VRU'HSHQGHQW¶VHQUROOPHQW [[225,1618,238,1671][11][,I,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] WR[LFLW\LWVVDIHW\LWVHIILFDF\RULWVHIILFDF\DVFRPSDUHGZLWKWKHVWDQGDUG PHDQVRIWUHDWPHQWRUGLDJQRVLV 1RWZLWKVWDQGLQJWKHDERYHWKLV3ODQPD\GHWHUPLQHWKDWDGUXJGHYLFH+HDOWKFDUH6HUYLFHRU SURFHGXUHLVQRW,QYHVWLJDWLYHLILWVKRZVVXIILFLHQWSURPLVH,QRUGHUWRVKRZVXIILFLHQWSURPLVH WKLV3ODQPXVWILQGRQDFDVHE\FDVHEDVLVWKDWWKHGUXJGHYLFH+HDOWKFDUH6HUYLFHRU SURFHGXUHPHHWVWKHIROORZLQJFULWHULD x 5HOLDEOHHYLGHQFHSUHOLPLQDULO\VXJJHVWVDKLJKSUREDELOLW\RILPSURYHG RXWFRPHVFRPSDUHGWRVWDQGDUGWUHDWPHQW HJVLJQLILFDQWO\LQFUHDVHG OLIHH[SHFWDQF\RUVLJQLILFDQWO\LPSURYHGIXQFWLRQ DQG x 5HOLDEOHHYLGHQFHVXJJHVWVFRQFOXVLYHO\WKDWEHQHILFLDOHIIHFWVRXWZHLJK DQ\KDUPIXOHIIHFWVDQG x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rial]] )0/$ 7KH)DPLO\DQG0HGLFDO/HDYH$FWRIDVDPHQGHGIURPWLPHWRWLPH +HDOWK&DUH5HIRUP 3DWLHQW3URWHFWLRQDQG$IIRUGDEOH+HDOWK&DUH$FW ³33$&$´ DV DPHQGHGE\WKH+HDOWK&DUHDQG(GXFDWLRQ5HFRQFLOLDWLRQ$FW ³5HFRQFLOLDWLRQ$FW´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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V,OOQHVVRU ,QMXU\UHTXLULQJRQO\,QWHUPLWWHQW&DUH ,OOQHVV $Q\QRQRFFXSDWLRQDOVLFNQHVVRUGLVRUGHU,QFOXGLQJSUHJQDQF\DQGUHODWHG FRQGLWLRQV7KHWHUP³,OOQHVV´GRHVQRWLQFOXGHDQLOOQHVVZLWKUHVSHFWWRZKLFKEHQHILWV DUHSD\DEOHXQGHUDQ\ZRUNHUV¶FRPSHQVDWLRQRFFXSDWLRQDOG LVHDVHRUVLPLODUODZ ,QFOXGLQJRU,QFOXGHV ,QFOXGLQJEXWQRWOLPLWHGWR ,QMXU\ $QRQRFFXSDWLRQDODFFLGHQWDOERGLO\LQMXU\FDXVHGGLUHFWO\DQGH[FOXVLYHO\E\ H[WHUQDOYLROHQWDQGSXUHO\DFFLGHQWDOPHDQV[[1456,2040,1481,2093][11][,I,][Arial]] [[1481,2040,1494,2092][11][,,][Arial]] [[1493,2040,2243,2092][11][,,][FEFEDDBF16E]]7KHWHUP³,QMXU\´GRHVQRW LQFOXGHDQ LQMXU\ZLWKUHVSHFWWRZKLFKEHQHILWVDUHSD\DEOHXQGHUDQ\ZRUNHUV¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] FRQGLWLRQDQGGLDJQRVWLFWHVWLQJDQGSUHYHQWLYHVHUYLFHVWKDWDUHQRWRWKHUZLVH H[FOXGHGXQGHUWKLV3ODQ0HGLFDOO\1HFHVVDU\FDUHPXVW EHFRQVLVWHQWZLWKJHQHUDOO\DFFHSWHGSDUDPHWHUVDVGHWHUPLQHGE\+HDOWKFDUH 3URYLGHUVLQWKHVDPHRUVLPLODUJHQHUDOVSHFLDOW\DVW\SLFDOO\PDQDJHWKHFRQGLWLRQ SURFHGXUHRUWUHDWPHQWDWLVVXHDQG KH OSUHVWRUHRUPDLQWDLQWKH0HPEHU¶VKHDOWKRU SUHYHQWGHWHULRUDWLRQRIWKH0HPEHU¶VFRQGLWLRQRU SUHYHQWWKHUHDVRQDEO\OLNHO\RQVHWRIDKHDOWKSUREOHPRUGHWHFWDQLQFLSLHQWSUREOHP 0HGLFDUH 7LWOH;9,,,RIWKH6RFLDO6HFXULW\$FWDVDPHQGHGIURPWLPHWRWLPH 0HPEHU $6XEVFULEHURU'HSHQGHQWZKRLVSDUWLFLSDWLQJXQGHUWKLV3ODQLQDFFRUGDQFH ZLWKWKH[[696,1005,1228,1058][11][,I,][Arial]](OLJLELOLW\DQG3DUWLFLSDWLRQ [[1229,1005,1242,1057][11][,,][Arial]] [[1242,1005,2240,1057][11][,,][Arial]]VHFWLRQDQGZKRVHFRYHUDJHKDVQRWWHUPLQDWH G 0HPEHUDOVRLQFOXGHVIRUPHU6XEVFULEHUVRUIRUPHU'HSHQGHQWVZKRDUHRWKHUZLVH HQWLWOHGWRFRYHUDJHDQGSURSHUO\HQUROOHGXQGHUWKLV3ODQ RYLVLRQRIKHDOWKFDUHEHQHILWVWR0HPEHUV 3UHVFULSWLRQ'UXJ 0 HGLFDWLRQVDQGGUXJVWKDWEHDUWKHOHJHQG³)HGHUDOODZSURKLELWV GLVSHQVLQJZLWKRXWDSUHVFULSWLRQ´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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3UHYHQWLYH&DUH +HDOWKFDUH6HUYLFHVUHQGHUHGVROHO\IRUWKHSXUSRVHRIKHDOWK PDLQWHQDQFHDQGQRWIRUWKHWUHDWPHQWRIDQ,OOQHVVRU,QMXU\,QFOXGLQJDVDSSURSULDWH WKRVH+HDOWKFDUH6HUYLFHVUHTXLUHGE\+HDOWK&DUH5HIRUPDQGUHJXODWRU\JXLGDQFH 3ULRU$XWKRUL]DWLRQ $XWKRUL]DWLRQIURPWKLV3ODQIRUVSHFLILF&RYHUHG6HUYLFHVEHIRUH WKH\DUHUHQGHUHGLQDFFRUGDQFHZLWKWKH[[1382,564,1864,617][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[1861,564,1874,616][11][,,][Arial]] [[1874,564,2288,616][11][,,][Arial]]VHFWLRQ5HTXHVWLQJ 3ULRU$XWKRUL]DWLRQLVD3UH6HUYLFH&ODLPDVGHVFULEHGLQWKH[[1779,617,2153,670][11][,I,][Arial]]&ODLPDQG$SSHDO [[525,670,760,723][11][,I,][Arial]]3URFHGXUHV [[760,670,773,722][11][,,][Arial]] [[773,670,930,722][11][,,][Arial]]VHFWLRQ [[930,670,943,722][11][,,][Arial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¶VXQFRPSHQVDWHGSULPDU\FDUHJLYHUVUHOLHI ZKHQQHFHVVDU\LQRUGHUWRPDLQWDLQWKH0HPEHUDWKRPH 5HWLUHH $IRUPHU(OLJLEOH(PSOR\HHZKRLVUHFHLYLQJDGLVDELOLW\EHQHILWRUDQDQQXLW\ IURPD0LQQHVRWDSXEOLFSHQVLRQSODQRWKHUWKDQDYROXQWHHUILUHILJKWHURUZKRKDVPHW DJHDQGVHUYLFHUHTXLUHPHQWVQHFHVVDU\WRUHFHLYHDQDQQXLW\IURPVXFKDSODQ 6NLOOHG&DUH 1XUVLQJRUUHKDELOLWDWLYHVHUYLFHVUHTXLULQJWKHVNLOOVRIWHFKQLFDORU SURIHVVLRQDOPHGLFDOSHUVRQQHOWRGHYHORSSURYLGHDQGHYDOXDWHWKHFDUHDQGDVVHVV WKH0HPEHU¶VFKDQJLQJFRQGLWLRQ 6SRXVH 7KH6XEVFULEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 8UJHQW&DUH $FRQGLWLRQUHTXLULQJ0HGLFDOO\1HFHVVDU\FDUHWRWUHDWDQXQIRUHVHHQ ,OOQHVVRU,QMXU\ZKLFKLVQHFHVVDU\WRSUHYHQWVHULRXVGHWHULRUDWLRQRID0HPEHU¶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rial]](OLJLELOLW\DQG3DUWLFLSDWLRQ [[1957,1821,2214,1873][11][,,][Arial]]VHFWLRQDQ\ SHULRGEHIRUHVXFKODWHRUVSHFLDOHQUROOPHQWLVQRWD:DLWLQJ3HULRG3HULRGVRI HPSOR\PHQWLQDQHPSOR\PHQWFODVVLILFDWLRQWKDWLVQRWHOLJLEOHIRUFRYHUDJHXQGHUWKLV 3ODQGRHVQRWFRQVWLWXWHD:DLWLQJ3HULRG 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,219 (/,*,%,/,7<$1'3$57,&,3$7,21 (OLJLELOLW\IRU(PSOR\HH&RYHUDJH (OLJLELOLW\DQGSDUWLFLSDWLRQDUHDVIROORZV (OLJLEOH(PSOR\HHV D $Q(PSOR\HHLVDQ(OLJLEOH(PSOR\HHDVORQJDVKHVKHLVZRUNLQJDVDUHJXODU (PSOR\HHDWOHDVWWZHQW\ KRXUVRUPRUHSHUZHHNIRUWKH(PSOR\HUDQGLVQRW DOUHDG\FRYHUHGXQGHUWKLV3ODQRUDQRWKHU&LW\RI5RFKHVWHUPHGLFDOSODQDVDVSRXVH RUGHSHQGHQWRIDQRWKHU3ODQ6XEVFULEHU &RYHUDJH6WDUW'DWH E $Q(PSOR\HHLVDQ(OLJLEOH(PSOR\HHRQWKHILUVWGD\RIWKHFDOHQGDUPRQWKIROORZLQJRU FRLQFLGLQJZLWKWKH(PSOR\HH¶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¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶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³VSHFLDOHQUROOPHQW´VLWXDWLRQRFFXUVRU GXULQJWKHDQQXDORSHQHQUROOPHQW 'HSHQGHQWV $'HSHQGHQWPXVWEHHQUROOHGZLWKLQWKLUW\RQH GD\VIURPWKHGDWHKHVKH ILUVWVDWLVILHVWKHGHILQLWLRQRI'HSHQGHQW,IHQUROOPHQWGRHVQRWRFFXUZLWKLQWKLV LQLWLDOSHULRGWKH'HSHQGHQWPD\HQUROOLQWKLV3ODQRQO\LID³VSHFLDOHQUROOPHQW´ VLWXDWLRQRFFXUVRUGXULQJWKHDQQXDORSHQHQUROOPHQW 2SHQ(QUROOPHQW E 3ULRUWRWKHVWDUWRID&RYHUDJH<HDUWKLV3ODQKDVDQRSHQHQUROOPHQWSHULRG³2SHQ HQUROOPHQWSHULRG´PHDQVWKHSHULRGRIWLPHRFFXUULQJWRZDUGW KHHQGRIWKH&RYHUDJH <HDUGXULQJZKLFK (OLJLEOH(PSOR\HHVZKRDUHQRWFRYHUHGXQGHUWKLV3ODQPD\HOHFW WREHJLQFRYHUDJHHIIHFWLYHWKHILUVWGD\RIWKHXSFRPLQJ&RYHUDJH<HDUDQG 6XEVFULEHUVZLOOEHJLYHQDQRSSRUWXQLW\WRFKDQJHWKHLUFRYHUDJHHIIHFWLYHWKHILUVWGD\ RIWKHXSFRPLQJ&RYHUDJH<HDU7KHWHUPVRIWKHRSHQHQUROOPHQWSHULRG,QFOXGLQJ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] GXUDWLRQRIWKHHOHFWLRQSHULRGVKDOOEHGHWHUPLQHGE\WKH3ODQ$GPLQLVWUDWRUDQG FRPPXQLFDWHGSULRUWRWKHVWDUWRIDQRSHQHQUROOPHQWSHULRG 6SHFLDO(QUROOPHQW'XHWR/RVVRI2WKHU+HDOWK&RYHUDJH F 8QGHUFHUWDLQFLUFXPVWDQFHVDQ(OLJLEOH(PSOR\HHRUKLVKHU'HSHQGHQW V ZKRGLGQRW HQUROOGXULQJWKHLQLWLDOHQUROOPHQWSHULRGGXULQJRSHQHQUROOPHQWRUZKHQDFKDQJHLQ VWDWXVHYHQWRFFXUUHGPD\HQUROOEHIRUHWKHQH[WRSHQHQUROOPHQWSHULRG7KHVH FLUFXPVWDQFHVZDUUDQW³VSHFLDOHQUROOPHQW´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³/RVV RIHOLJLELOLW\´GRHVQRWLQFOXGHDORVVGXHWRWKHIDLOXUHRIWKH(OLJLEOH (PSOR\HHRUHOLJLEOH'HSHQGHQWWRSD\SUHPLXPVRQDWLPHO\EDVLVRU WHUPLQDWLRQRIWKHSULRUFRYHUDJHIRUFDXVHEXWPD\,QFOXGH /RVVRIHOLJLELOLW\DVDUHVXOWRIOHJDOVHSDUDWLRQGLYRUFHGHDWK WHUPLQDWLRQRIHPSOR\PHQWRUUHGXFWLRQLQWKHQXPEHURIKRXUVRI HPSOR\PHQW &HVVDWLRQRI'HSHQGHQWVWDWXV 'LVFRQWLQXDQFHRIDEHQHILWSODQIRUDFODVVRIVLPLODUO\VLWXDWHG LQGLYLGXDOVWKDWLQFOXGHVWKH(OLJLEOH(PSOR\HHRU'HSHQGHQW (OLJLEOH(PSOR\HHRU'HSHQGHQWQRORQJHUUHVLGHVRULVHPSOR\HG ZLWKWKHVHUYLFHDUHDIRUSULRUFRYHUDJHXQGHUDJURXS+02SODQ SURYLGHGQRRWKHUFRYHUDJHRSWLRQLVDYDLODEOH /RVVRIHOLJLELOLW\RFFXUVUHJDUGOHVVRIZKHWKHUWKH(OLJLEOH(PSOR\HHRU 'HSHQGHQWLVHOLJLEOHIRURUHOHFWVFRQWLQXDWLRQRIFRYHUDJHUHTXLUHG XQGHUIHGHUDOODZDQG G 6XEPLWVDZULWWHQUHTXHVWIRUHQUROOPHQWWR3ODQ$GPLQLVWUDWRURULWV GHVLJQHHZLWKLQWKLUW\RQH GD\VRIWKHGDWHRIWKHORVVRIFRYHUDJH WKHGDWHWKHHPSOR\HU¶VFRQWULEXWLRQWRZDUGWKDWFRYHUDJHWHUPLQDWHGRU WKHGDWHRQZKLFKWKHFODLPLVGHQLHGGXHWRWKHRSHUDWLRQRIDOLIHWLPH OLPLW 7KH(OLJLEOH(PSOR\HHRU'HSHQGHQWVDWLVILHVDOORIWKHIROORZLQJFULWHULD 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] D :DVFRYHUHGXQGHUDJURXSKHDOWKSODQRUKHDOWKLQVXUDQFHFRYHUDJH XQGHU&2%5$RU0LQQHVRWDFRQWLQXDWLRQFRYHUDJHODZ E 'HFOLQHGFRYHUDJHLQZULWLQJIRUWKDWUHDVRQ F 3UHVHQWVWRWKH3ODQ$GPLQLVWUDWRURULWVGHVLJQHHHYLGHQFHWKDWWKH (OLJLEOH(PSOR\HHKDVH[KDXVWHGVXFK&2%5$FRYHUDJHDQGKDVQRWORVW VXFKFRYHUDJHGXHWRWKHIDLOXUHRIWKH(OLJLEOH(PSOR\HHRU'HSHQGHQWWR SD\SUHPLXPVRQDWLPHO\EDVLVRUWHUPLQDWLRQRIFRYHUDJHIRUFDXVH WKH (OLJLEOH(PSOR\HHRI'HSHQGHQWZLOOEHGHHPHGWRKDYHH[KDXVWHG &2%5$FRYHUDJHLIVXFKFRYHUDJHFHDVHVDVDUHVXOWRIWKH(PSOR\HU¶V IDLOXUHWRUHPLWSUHPLXPVRQDWLPHO\EDVLVRUDVDUHVXOWRIWKH(OLJLEOH (PSOR\HHRU'HSHQGHQWLQFXUULQJDFODLPWKDWPHHWVRUH[FHHGVWKH OLIHWLPHOLPLWRQDOOEHQHILWVDQGQRRWKHU&2%5$FRQWLQXDWLRQLV DYDLODEOH DQG G 6XEPLWVDZULWWHQUHTXHVWIRUHQUROOPHQWWRWKH3ODQ$GPLQLVWUDWRURULWV GHVLJQHHZLWKLQWKLUW\RQH GD\VRIWKHGDWHRIWKHORVVRIFRYHUDJH 7KH(OLJLEOH(PSOR\HHRU'HSHQGHQWVDWLVILHVDOORIWKHIROORZLQJFULWHULD D (IIHFWLYH$SULODQ(OLJLEOH(PSOR\HHRU'HSHQGHQWZLWKFRYHUDJH XQGHUD6WDWH0HGLFDLGSODQRU&KLOGUHQ¶V+HDOWK,QVXUDQFH3URJUDP 6&+,3 ORVHVVXFKHOLJLELOLW\ E /RVVRIHOLJLELOLW\XQGHUVXFKSODQLVQRWGXHWRWKH(OLJLEOH(PSOR\HH¶VRU 'HSHQGHQW¶VIDLOXUHWRSD\UHTXLUHGSUHPLXPVRQDWLPHO\EDVLVRU WHUPLQDWLRQIRUFDXVHDQG F 6XEPLWVDZULWWHQUHTXHVWIRUHQUROOPHQWWR3ODQ$GPLQLVWUDWRURULWV GHVLJQHHZLWKLQVL[W\ GD\VRIWKHGDWHRIWKHORVVRIFRYHUDJH 6SHFLDO(QUROOPHQW'XHWR$GGLWLRQRI'HSHQGHQW G $Q(OLJLEOH(PSOR\HH¶VPDUULDJHRUWKHELUWKRUDGRSWLRQRIKLVKHUFKLOGWULJJHUVVSHFLDO HQUROOPHQWULJKWV 1RQ3DUWLFLSDWLQJ(PSOR\HHV0D\$OVR(QUROO 7KHDGGLWLRQRIDQHZGHSHQGHQWWULJJHUVHQUROOPHQWULJKWVIRUDQ(OLJLEOH (PSOR\HHHYHQLIKHVKHGRHVQRWSDUWLFLSDWHLQWKLV3ODQDWWKHWLPHRIWKHHYHQW )RUH[DPSOHXSRQWKHELUWKRIDQ(OLJLEOH(PSOR\HH¶VFKLOGWKH(O LJLEOH (PSOR\HH DVVXPLQJWKDWKHVKHGLGQRWSUHYLRXVO\HQUROO KLVKHU6SRXVHDQG KLVKHUQHZERUQFKLOGPD\DOOHQUROOEHFDXVHRIWKHFKLOG¶VELUWK7KHVDPHUXOH DSSOLHVWRWKH(OLJLEOH(PSOR\HH¶VPDUULDJHRUDGRSWLRQRIDFKLOGLIWKH(OLJLEOH (PSOR\HHKDGQRWSUHYLRXVO\HQUROOHGLQWKLV3ODQ 'HDGOLQHIRU6SHFLDO(QUROOPHQW3HULRG 7KH(OLJLEOH(PSOR\HHPXVWUHTXHVWVSHFLDOHQUROOPHQWLQWKLV3ODQZLWKLQWKLUW\ RQH GD\VRIPDUULDJHRUELUWKDGRSWLRQRUSODFHPHQWIRUDGRSWLRQRIKLVKHU FKLOG,IWKH3ODQ$GPLQLVWUDWRURULWVGHVLJQHHGRHVQRWUHFHLYHWKH(OLJLEOH (PSOR\HH¶VFRPSOHWHGUHTXHVWIRUHQUROOPHQWZLWKLQWKLVGHDGOLQHWKH(OLJLEOH (PSOR\HHDQGKLVKHU'HSHQGHQWVORVHVSHFLDOHQUROOPHQWULJKWVIRUWKDWHYHQW 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6SHFLDO(QUROOPHQW'XHWR3UHPLXP$VVLVWDQFH8QGHU6WDWH0HGLFDLG3ODQRU H 6WDWH&KLOGUHQ¶V+HDOWK,QVXUDQFH3URJUDP 6&+,3 ,IDQ(OLJLEOH(PSOR\HHRU'HSHQGHQW V GLGQRWHQUROOGXULQJWKHLQLWLDOHQUROOPHQWSHULRG GXULQJRSHQHQUROOPHQWRUZKHQDFKDQJHLQVWDWXVHYHQWRFFXUUHGDQGEHFRPHV HOLJLEOHIRUSUHPLXPDVVLVWDQFHXQGHUD6WDWH0HGLFDLGRU6WDWH&KLOGUHQ¶V+HDOWK 3URJUDP 6&+,3 WKHQWKH(OLJLEOH(PSOR\HHRU'HSHQGHQW V PD\HQUROOEHIRUHWKH QH[WRSHQHQUROOPHQWSHULRGDVORQJDVWKH\QRWLI\WKH3ODQ$GPLQLVWUDWRULQZULWLQJZLWKLQ VL[W\ GD\VRIWKHGDWHWKH\EHFDPHHOLJLEOHIRUWKHSUHPLXPDVVLVWDQFH 2SW2XW I $Q(OLJLEOH(PSOR\HHPD\GHFOLQHFRYHUDJH ³RSWRXW´ XQGHUWKLV3ODQLIWKH\DUH FRYHUHGXQGHUDQRWKHUTXDOLILHGSODQDQGSURYLGHDGHTXDWHSURRI6XFKDQ(OLJLEOH (PSOR\HHVKDOOEHSURYLGHGZLWKWKHDSSURSULDWHQRWLFHUHTXLUHGXQGHU+,3$$UHJDUGLQJ RSWLQJRXWRIFRYHUDJH (IIHFWLYH'DWHRI&RYHUDJH 7KHGDWHRQZKLFKFRYHUDJHEHFRPHVHIIHFWLYHGHSHQGVXSRQZKHQHQUROOPHQWRFFXUV D (QUROOPHQWZLWKLQ,QLWLDO(QUROOPHQW3HULRG 6XEVFULEHUV 7KHHIIHFWLYHGDWHRIFRYHUDJHIRU6XEVFULEHUVZKRHQUROOGXULQJWKHLQLWLDO HQUROOPHQWSHULRGLVWKHILUVWGD\RIWKHILUVWGD\RIWKHPRQWKIROORZLQJWKH(OLJLEOH (PSOR\HH¶VILUVWGD\RIHPSOR\PHQWRUFKDQJHWRHOLJLEOHVWDWXVZLWKWKH (PSOR\HU 'HSHQGHQWV 7KHHIIHFWLYHGDWHRIFRYHUDJHIRU'HSHQGHQWVLVRQWKH(OLJLEOH(PSOR\HH¶V HIIHFWLYHGDWH ,I'HSHQGHQWVWDWXVLVDFTXLUHGDIWHUWKH6XEVFULEHU¶VLQLWLDOHOLJLELOLW\WKHHIIHFWLYHGDWH RIFRYHUDJHVKDOOEHWKHGDWHRQZKLFKWKHQHZ'HSHQGHQWEHFRPHVHOLJLEOHIRU FRYHUDJHXQGHUWKLV3ODQSURYLGHGWKH6XEVFULEHUFRPSOHWHVDFKDQJHIRUPDQG VXEPLWVLWWRWKH(PSOR\HUZLWKLQWKLUW\ GD\VDIWHUWKHDWWDLQPHQWRI'HSHQGHQW VWDWXV (QUROOPHQW1RW:LWKLQ,QLWLDO(QUROOPHQW3HULRG E ,IDQ(OLJLEOH(PSOR\HHRU'HSHQGHQWGRHVQRWHQUROOZLWKLQWKHLQLWLDOHQUROOPHQWSHULRG KHRUVKHPXVWZDLWXQWLOD³VSHFLDOHQUROOPHQW´VLWXDWLRQRFFXUV,ID³VSHFLDOHQUROOPHQW´ VLWXDWLRQRFFXUVWKH(OLJLEOH(PSOR\HHRU'HSHQGHQWPXVWHQUROOZLWKLQWKLUW\RQH GD\VRIWKH³VSHFLDOHQUROOPHQW´VLWXDWLRQ¶VRFFXUUHQFH 6SHFLDO(QUROOPHQW :KHQHQUROOPHQWRFFXUVDVWKHUHVXOWRIDVSHFLDOHQUROOPHQWGXHWRORVVRI RWKHUKHDOWKFRYHUDJHDVGHVFULEHGDERYHWKHHIIHFWLYHGDWHRIFRYHUDJHLV WKHILUVWGD\RIWKHPRQWKIROORZLQJWKHUHFHLSWDQGDFFHSWDQFHRIWKH FRPSOHWHGHQUROOPHQWPDWHULDOVE\WKH3ODQ$GPLQLVWUDWRURULWVGHVLJQHH :KHQHQUROOPHQWRFFXUVDVWKHUHVXOWRIDVSHFLDOHQUROOPHQWGXHWRDGGLWLRQRI D'HSHQGHQWDVGHVFULEHGDERYHWKHHIIHFWLYHGDWHRIFRYHUDJHLVWKHGDWHRI WKHHYHQW 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] /DWH(QUROOPHQW ,I0HPEHUGRHVQRWHQUROOZLWKLQWKHLQLWLDOHQUROOPHQWDQGGRHVQRWTXDOLI\IRU 6SHFLDO(QUROOPHQW0HPEHULVDODWHHQUROOHH$VDODWHHQUROOHH6XEVFULEHU PD\RQO\HQUROOVHOIDQGDQ\'HSHQGHQWVGXULQJWKLV3ODQ¶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rial]]5HWLUHH&RYHUDJH [[1262,2301,1275,2353][11][,,][Arial]] [[1275,2301,1721,2353][11][,,][Arial]]VXEVHFWLRQDERYHDQG [[1721,2301,1734,23 53][11][,,][Arial]] [[1733,2301,1809,2353][11][,,][Arial]]WKH [[1810,2301,2130,2354][11][,I,][Arial]]&RQWLQXDWLRQRI [[375,2353,459,2406][11][,I,][Arial]]+HD [[459,2353,808,2406][11][,I,][Arial]]OWKFDUH&RYHUDJH [[809,2353,822,2405][11][,,][Arial]] [[822,2353,1675,2405][11][,,][FEFEDDBF16E]]VHFWLRQD6XEVFULEHU¶V SDUWLFLSDWLRQXQGHU [[1685,2353,1861,2405][11][,,][Arial]]WKLV3ODQ [[1861,2353,1874,2405][11][,,][Arial]] [[1873,2353,2322,2405][11][,,][Arial]]ZLOOFHDVHDWPLGQLJKW RQWKHODVWGD\RIWKHFDOHQGDUPRQWKLQZKLFKWKHHDUOLHVWRIWKHIROORZLQJHYHQWVRFFXUV D 7KHGDWHWKH6XEVFULEHUWHUPLQDWHVHPSOR\PHQWZLWKWKH(PSOR\HU E 7KHGDWHWKH6XEVFULEHU¶VHPSOR\PHQWSRVLWLRQRUVWDWXVFKDQJHVVXFKWKDWKHVKHLVQR ORQJHUDQ(OLJLEOH(PSOR\HH F 7KHGDWHHQGLQJWKHSHULRGIRUZKLFKWKHODVWFRQWULEXWLRQLVPDGHLIWKH6XEVFULEHUIDLOV WRPDNHDQ\UHTXLUHGFRQWULEXWLRQVZKHQGXH G 7KHGDWHWKH(PSOR\HUWHUPLQDWHVWKLV3ODQRULWVSDUWLFLSDWLRQLQWKLV3ODQ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H 7KHGDWHRIWKH6XEVFULEHU¶VGHDWK 'HSHQGHQW7HUPLQDWLRQRI&RYHUDJH ([FHSWDVSURYLGHGLQWKH[[903,459,1262,512][11][,I,][Arial]]5HWLUHH&RYHUDJH [[1262,459,1275,511][11][,,][Arial]] [[1275,459,1733,511][11][,,][Arial]]VXEVHFWLRQDERYHDQG [[1733,459,1797,511][11] [,,][Arial]]WKH [[1797,459,1810,512][11][,I,][Arial]] [[1810,459,2130,512][11][,I,][Arial]]&RQWLQXDWLRQRI [[375,512,809,565][11][,I,][Arial]]+HDOWKFDUH&RYHUDJH [[809,512,822,564][11][,,][Arial]] [[822,512,1680,564][11][,,][FEFEDDBF16E]]VHFWLRQD'HSHQGHQW¶VSDUWLFLSDWLRQXQGHU [[1690,512,1866,564][11 ][,,][Arial]]WKLV3ODQ [[1866,512,1879,564][11][,,][Arial]] [[1878,512,2327,564][11][,,][Arial]]ZLOOFHDVHDWPLGQLJKW RQWKHODVWGD\RIWKHFDOHQGDUPRQWKLQZKLFKWKHHDUOLHVWRIWKHIROORZLQJHYHQWVRFFXUV D 7KHGDWHWKHGHSHQGHQWFHDVHVWREHDQHOLJLEOH'HSHQGHQWDVGHILQHGLQWKLV3ODQ E 7KHGDWHRIWHUPLQDWLRQRIWKH6XEVFULEHU¶VFRYHUDJHXQGHUWKLV3ODQ VHHDERYH F 7KHGDWHWKH'HSHQGHQWEHFRPHVFRYHUHGXQGHUWKLV3ODQDVD6XEVFULEHU G 7KHGDWH'HSHQGHQWFRYHUDJHLVGLVFRQWLQXHGXQGHUWKLV3ODQ H 7KHHQGRIWKHSHULRGIRUZKLFKWKH6XEVFULEHUFHDVHVWRPDNHWKHUHTXLUHG FRQWULEXWLRQVIRUWKH'HSHQGHQW I )RU'HSHQGHQWVZKRVHFRYHUDJHLVUHTXLUHGSXUVXDQWWRD40&62WKHODVWGD\RIWKH FDOHQGDUPRQWKFRYHUDJHLVQRORQJHUUHTXLUHGXQGHUWKHWHUPVRIWKHRUGHURUWKLV3ODQ 0HPEHU7HUPLQDWLRQRI&RYHUDJH ([FHSWDVSURYLGHGLQWKH[[903,1460,1262,1513][11][,I,][Arial]]5HWLUHH&RYHUDJH [[1262,1460,1275,1512][11][,,][Arial]] [[1275,1460,1631,1512][11][,,][Arial]]VXEVHFWLRQDERYH [[1631,1460,1644,1512][ 11][,,][Arial]] [[1644,1460,1657,1512][11][,,][Arial]] [[1657,1460,1670,1512][11][,,][Arial]]W [[1670,1460,1721,1512][11][,,][Arial]]KH [[1721,1460,1734,1512][11][,,][Arial]] [[1734,1460,2289,1513 ][11][,I,][Arial]]&RQWLQXDWLRQRI+HDOWKFDUH [[375,1513,574,1566][11][,I,][Arial]]&RYHUDJH [[574,1513,587,1565][11][,,][Arial]] [[587,1513,757,1565][11][,,][Arial]]VHFWLRQ [[758,1513,923,1565][11][,,][Arial]]DQGWKH [[923,1513,1157,1566][11 ][,I,][Arial]]5HVFLVVLRQ [[1158,1513,1534,1565][11][,,][Arial]]VXEVHFWLRQEHORZ [[1535,1513,2214,1565][11][,,][FEFEDDBF16E]]DQ\0HPEHU¶VSDUWLFLSDWLRQXQGHU [[2226,1513,2309,1565][11][,,][Arial]] WKLV 3ODQZLOOFHDVHDWPLGQLJKWRQWKHODVWGD\RIWKHFDOHQGDUPRQWKLQZKLFKWKHHDUOLHVWRIWKH IROORZLQJHYHQWVRFFXUV x 7KHGDWHRQZKLFKD0HPEHUDOORZVXQDXWKRUL]HGSHUVRQVWRXVHKLVKHU0HPEHUVKLS&DUG WRREWDLQ3ODQEHQHILWVIRUWKHPVHOYHV6HH[[1348,1780,1715,1833][11][,I,][Arial]]0HPEHUVKLS&DUG [[1711,1780,1724,1832][11][,,][Arial]] [[1724,1780,2092,1832][11][,,][Arial]]VXEVHFWLRQDERYH [[2093,1780,2106,1832][11][,,][Arial]] x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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,219,, 87,/,=$7,210$1$*(0(17 WKRULW\WRGHWHUPLQHZKHWKHUSURYLGHG VHUYLFHVDUH&RYHUHG6HUYLFHVXQGHUWKLV3ODQ 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]' [[1008,1724,1215,1777][11][,I,][Arial]]LVFHFWRP\ [[1212,1724,1225,1777][11][,I,][Arial]] [[975,1776,988,1829][11][,I,][Arial]] [[975,1829,1007,1882][11][,I,][Arial]]( [[1006,1829,1625,1882][11][,I,][Arial]]SLGXUDOLQMHFWLRQVRUGLVFRJUDP [[1625,1829,1638,1882][11][,I,][Arial]] [[975,1882,988,1935][11][,I,][Arial]] [[975,1935,1011,1988][11][,I,][Arial]]2 [[1011,1935,1739,1988][11][,I,][Arial]]VWHRWRP\RUDUWKURGHVLVRIWKHVSLQH [[1739,1935,1752,1988][11][,I,][Arial]] [[975,1987,988,2040][11][,I,][Arial]] [[975,2040,1008,2093][11][,I,][Arial]]' [[1008,2040,1294,2093][11][,I,][Arial]]HFRPSUHVVLRQ [[1294,2040,1307,2093][11][,I,][Arial]] [[975,2093,988,2146][11][,I,][Arial]] [[975,2145,1010,2198][11][,I,][Arial]]9 [[1006,2145,1414,2198][11][,I,][Arial]]HUWHEUDOFRUSHFWRP\ [[1411,2145,1424,2198][11][,I,][Arial]] [[975,2198,988,2251][11][,I,][Arial]] %OHSKDURSODVW\EURZOLIWVRUNHUDWRSODVW\ E %UHDVWVXUJHU\ F [[825,2409,1080,2462][11][,I,][Arial]]3OHDVHQRWH [[1080,2409,1093,2462][11][,I,][Arial]] [[1125,2409,1560,2462][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,2409,1627,2462][11][,I,][Arial]]QRW [[1625,2409,1638,2462][11][,I,][Arial]] [[1638,2409,2290,2462][11][,I,][Arial]]UHTXLUHGIRUDQ\VXUJHU\UHODWHG [[1125,2462,2115,2515][11][,I,][Arial]]WRFDQFHUWUHDWPHQWRUUHFRQVWUXFWLRQIROORZLQJD [[1125,2514,1947,2567][11][,I,][Arial]]PDVWHFWRP\IRUEUHDVWFDQFHUWUHDWPHQW [[1948,2514,1961,2567][11][,I,][Arial]] [[825,2567,838,2620][11][,I,][Arial]] &RVPHWLFRUUHFRQVWUXFWLYHSURFHGXUHVDQGVXUJHU\ G [[825,2672,1080,2725][11][,I,][Arial]]3OHDVHQRWH [[1080,2672,1093,2725][11][,I,][Arial]] [[1125,2672,1560,2725][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,2672,1627,2725][11][,I,][Arial]]QRW [[1625,2672,1638,2725][11][,I,][Arial]] [[1638,2672,2185,2725][11][,I,][Arial]]UHTXLUHGIRUUHFRQVWUXFWLRQ [[1125,2725,2176,2778][11][,I,][Arial]]IROORZLQJDPDVWHFWRP\IRUEUHDVWFDQFHUWUHDWPHQW [[2178,2725,2191,2778][11][,I,][Arial]] )RRWVXUJHU\ H [[825,2831,1080,2884][11][,I,][Arial]]3OHDVHQRWH [[1080,2831,1093,2884][11][,I,][Arial]] [[1125,2831,1560,2884][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,2831,1627,2884][11][,I,][Arial]]QRW [[1625,2831,1638,2884][11][,I,][Arial]] [[1638,2831,2292,2884][11][,I,][Arial]]UHTXLUHGIRUIRRWVXUJHU\LIWKHUH [[1125,2883,1906,2936][11][,I,][Arial]]KDVEHHQSULRUFRQVHUYDWLYHWUHDWPHQW [[1907,2883,1920,2936][11][,I,][Arial]] [[825,2936,838,2989][11][,I,][Arial]] 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 2UDOVXUJHU\PD[LOORIDFLDOVXUJHU\RUXYXORSDODWRSKDU\QJRSODVW\ I 8333 [[825,406,1080,459][11][,I,][Arial]]3OHDVHQRWH [[1080,406,1093,459][11][,I,][Arial]] [[1125,406,1560,459][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,406,1627,459][11][,I,][Arial]]QRW [[1625,406,1638,459][11][,I,][Arial]] [[1638,406,2205,459][11][,I,][Arial]]UHTXLUHGIRURUDOVXUJHU\IRU [[1125,459,1532,512][11][,I,][Arial]]WUHDWPHQWRIFDQFHU [[1533,459,1546,512][11][,I,][Arial]] [[825,512,838,565][11][,I,][Arial]] 5KLQRSODVW\VHSWRSODVW\RUUKLQRVHSWRSODVW\ J 9DULFRVHYHLQWUHDWPHQW K [[825,722,1080,775][11][,I,][Arial]]3OHDVHQRWH [[1080,722,1093,775][11][,I,][Arial]] [[1125,722,1560,775][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1561,722,1627,775][11][,I,][Arial]]QRW [[1625,722,1638,775][11][,I,][Arial]] [[1638,722,2317,775][11][,I,][Arial]]UHTXLUHGIRUVWULSSLQJDQGOLJDWLRQ [[1125,775,1478,828][11][,I,][Arial]]RIYDULFRVHYHLQV [[1479,775,1492,828][11][,I,][Arial]] [[825,828,838,881][11][,I,][Arial]] :HLJKWUHGXFWLRQVXUJHU\ L +RPH+HDOWK&DUH +RVSLFHFDUH 1RQ(PHUJHQF\+RVSLWDO$GPLVVLRQV ,QFOXGLQJDGPLVVLRQVIRUPHQWDOKHDOWK FKHPLFDOGHSHQGHQF\RUPHGLFDOSURFHGXUHV [[675,1302,930,1355][11][,I,][Arial]]3OHDVHQRWH [[930,1302,943,1355][11][,I,][Arial]] [[975,1302,1410,1355][11][,I,][Arial]]3ULRU$XWKRUL]DWLRQLV [[1411,1302,1477,1355][11][,I,][Arial]]QRW [[1475,1302,1488,1355][11][,I,][Arial]] [[1488,1302,2267,1355][11][,I,][Arial]]UHTXLUHGIRUHPHUJHQF\DGPLVVLRQVWR [[975,1355,2197,1408][11][,I,][Arial]]WKH+RVSLWDOKRZHYHUWKH0HPEHUVKRXOGQRWLI\WKH&ODLPV [[974,1408,1632,1461][11][,I,][Arial]]$GPLQLVWUDWRUZLWKLQKRXUVDIW [[1631,1408,2267,1461][11][,I,][Arial]]HUWKHDGPLVVLRQRUDVVRRQDV [[975,1460,1405,1513][11][,I,][Arial]]UHDVRQDEO\SRVVLEOH [[1406,1460,1419,1513][11][,I,][Arial]] [[225,1513,238,1566][11][,I,][Arial]] 3K\VLFDOWKHUDS\RFFXSDWLRQDOWKHUDS\DQGVSHHFKWKHUDS\ D )RU0HPEHUV 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]&ODLPDQG [[524,1144,927,1197][11][,I,][Arial]]$SSHDO3URFHGXUHV [[928,1144,2316,1196][11][,,][Arial]]VHFWLRQ WRWKLV3ODQIRUUHLPEXUVHPHQW,IWKH3UHVFULSWLRQ'UXJLVD &RYHUHG6HUYLFHWKH0HPEHUZLOOEHUHVSRQVLEOHIRUDQ\FKDUJHVDERYHWKH$OORZHG &KDUJHLQDGGLWLRQWRWKH&RVW6KDULQJ$PRXQW 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V &XVWRPHU6HUYLFH'HSDUWPHQWDW&KRLFHRI+HDOWKFDUH3URYLGHU 7KH0HPEHUZLOOKDYHIUHHFKRLFHRIDQ\OHJDOO\TXDOLILHG+HDOWKFDUH3URYLGHUDQGWKH +HDOWKFDUH3URYLGHUSDWLHQWUHODWLRQVKLSZLOOEHPDLQWDLQHG 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21,; 6&+('8/(2)%(1(),76 &RVW6KDULQJDQG%HQHILWV 7KLV[[475,617,895,670][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[895,617,908,669][11][,,][Arial]] [[908,617,2331,669][11][,,][Arial]]VHFWLRQGHWDLOVWKH&RYHUHG6HUYLFHVDQGUHODWHGFRVWVWRWKH0HPEH U XQGHUWKLV3ODQ7KH0HPEHUZLOOJHQHUDOO\SD\D&RVW6KDULQJ$PRXQWIRU&RYHUHG6HUYLFHV 7KLV[[475,775,895,828][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[895,775,908,827][11][,,][Arial]] [[908,775,2225,827][11][,,][Arial]]VHFWLRQLVOLPLWHGE\WKHH[SUHVVH[FOXVLRQVDQGOLPLWDWLRQVVHWRX [[2226,775,2300,827][11][,,][Arial]]WLQ WKH[[452,828,671,881][11][,I,][Arial]]([FOXVLRQV [[671,828,684,880][11][,,][Arial]] [[684,828,841,880][11][,,][Arial]]VHFWLRQ [[841,828,854,880][11][,,][Arial]] 6RPH&RYHUHG6HUYLFHVDUHVXEMHFWWR3ULRU$XWKRUL]DWLRQUHTXLUHPHQWVDVLQGLFDWHGLQWKH [[375,986,857,1039][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[854,986,867,1038][11][,,][Arial]] [[867,986,1437,1038][11][,,][Arial]]VHFWLRQ3OHDVHUHIHUWRWKH [[1438,986,1919,1039][11][,I,][Arial ]]8WLOL]DWLRQ0DQDJHPHQW [[1917,986,1930,1038][11][,,][Arial]] [[1930,986,2153,1038][11][,,][Arial]]VHFWLRQIRU LQIRUPDWLRQUHJDUGLQJ3ULRU$XWKRUL]DWLRQ D /HYHORI%HQHILWV 7KH0HPEHULVUHVSRQVLEOHIRUWKHGLIIHUHQFHEHWZHHQ8VXDODQG&XVWRPDU\5DWHVDQG ELOOHGFKDUJHVZKHQHYHU&RYHUHG6HUYLFHVDUHSURYLGHGE\DQ2XWRI1HWZRUN+HDOWKFDUH 3URYLGHU E 'HGXFWLEOHV ,Q1HWZRUNDQG2XWRI1HWZRUN 'HGXFWLEOHSHU0HPEHU SHU)DPLO\ ,IWKH)DPLO\'HGXFWLEOHOLPLWDVVKRZQDERYHLVLQFXUUHGE\FRYHUHG)DPLO\0HPEHUV GXULQJWKH&RYHUDJH<HDUQRIXUWKHU'HGXFWLEOHVZLOOEHUHTXLUHGRQDQ\)DPLO\ 0HPEHUVIRUWKHUHVWRIWKH\HDU 1RFRY HUHG0HPEHUZLOOHYHUPHHWPRUHWKDQWKH³SHU0HPEHU´OLPLW F $QQXDO2XWRI3RFNHW0D[LPXPV ,Q1HWZRUNDQG2XWRI1HWZRUN $QQXDO2XWRI3RFNHW0D[LPXPSHU0HPEHU 0HGLFDODQG3UHVFULSWLRQ'UXJV SHU)DPLO\ x 7KH$QQXDO2XWRI3RFNHW0D[LPXPGRHVQRWLQFOXGHFKDUJHVWKDWDUHQRW&RYHUHG 6HUYLFHVXQGHUWKLV3ODQ HJFKDUJHVZKLFKH[FHHG8VXDODQG&XVWRPDU\5DWHVDQGFRVWV SDLGE\WKH0HPEHUDVDUHVXOWRIWKH0HPEHU¶VIDLOXUHWRFRPSO\ZLWK3ULRU$XWKRUL]DWL RQRU 5HIHUUDOUHTXLUHPHQWV DQGFKDUJHVLQH[FHVVRI3ODQPD[LPXPV x 1RFRYHUHG0HPEHUZLOOHYHUPHHWPRUHWKDQWKH³SHU0HPEHU´RXWRISRFNHWOLPLW x 0D[LPXP%HQHILWV3DLGE\WKLV3ODQIRU&HUWDLQ&RYHUHG6HUYLFHV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 7KLV3ODQKDVHVWDEOLVKHGOLPLWVRQWKHDPRXQWRIEHQHILWVLWZLOOSD\IRUFHUWDLQ&RYHUHG 6HUYLFHV7KHVHVSHFLILFVHUYLFHVDQGWKHLUDSSOLFDEOHOLPLWVDUHLGHQWLILHGLQWKLV[[2099,353,2302,406][11][,I,][Arial]]6FKHGXOH [[450,406,667,459][11][,I,][Arial]]RI%HQHILWV [[667,406,680,458][11][,,][Arial]] [[680,406,863,458][11][,,][Arial]]VHFWLRQ [[863,406,876,458][11][,,][Arial]] x 0D[LPXP$QQXDO%HQHILW3DLGE\WKLV3ODQ 7RWKHH[WH QWD0HPEHU¶VEHQHILWVSDLGH[FHHGWKH0D[LPXP$QQXDO%HQHILWEHQHILWVSDLG IRUWKH&RYHUDJH<HDUVKDOOEHUHYLHZHGDQGUHFRQFLOHGVXFKWKDWRQO\EHQHILWVSDLGIRU ³QRQHVVHQWLDOKHDOWKEHQHILWV´DVWKDWWHUPLVGHILQHGE\+HDOWK&DUH5HIRUPFRXQW WRZDUGVWKH0D[LPXP$QQXDO%HQHILW ,Q1HWZRUN2XWRI1HWZRUN 0D[LPXP$QQXDO%HQHILW +RVSLFH&DUHPRQWKV 0D[LPXP$QQXDO%HQHILW 6NLOOHG1XUVLQJ)DFLOLW\GD\V &RYHUHG6HUYLFHV 7KLVVHFWLRQGHVFULEHVWKH&RYHUHG6HUYLFHVIRUZKLFKEHQHILWVDUHDYDLODEOHXQGHUWKLV3ODQ VXEMHFWWRWKHGHILQLWLRQVH[FOXVLRQVFRQGLWLRQVDQGOLPLWDWLRQVRIWKLV3ODQ&RVW6KDULQJ $PRXQWV 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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³5RXWLQHSDWLHQWFRVWV´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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] F &+,5235$&7,&6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU &KLURSUDFWLFDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 6HUYLFHV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,781,2242,834][11][,I,][Arial]]8WLOL]DWLRQ [[375,834,645,887][11][,I,][Arial]]0DQDJHPHQW [[643,834,656,886][11][,,][Arial]] [[656,834,1539,886][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,834,1611,887][11][,I,][Aria l]]3UH [[1611,834,1626,887][11][,I,][Arial]] [[1627,834,1933,887][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,834,1945,886][11][,,][Arial]] [[1945,834,2303,886][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,887,984,940][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,887,998,939][11][,,][Arial]] [[998,887,2106,939][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,887,2118,939][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGH&KLURSUDFWLFFDUHDVDOORZHGXQGHU6WDWHSUDFWLFHUHJXODWLRQVDUH OLPLWHGWRYLVLWVSHUSHUVRQSHU\HDU )RUFKLURSUDFWLFVHUYLFHV,Q1HWZRUNVKDOOPHDQWKH+60FKLURSUDFWLFQHWZRUN ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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x 2UDOVXUJHU\IRUWXPRUVRUF\VWVRIWKHMDZERQHRUPRXWK H[FOXGLQJUHVWRUDWLYHRURUWKRGRQWLF WUHDWPHQWWKDWPD\RUPD\QRWEHUHODWHGWRWKHWXPRURUF\VW x 5HPRYDORILPSDFWHGWHHWK &RYHUDJHIRUJHQHUDODQHVWKHVLDDQGWUHDWPHQWUHQGHUHGE\DGHQWLVWIRUDPHGLFDOFRQGLWLRQ FRYHUHGE\WKHKHDOWKSODQUHJDUGOHVVRIZKHWKHUWKHVHUYLFHVDUHSURYLGHGLQD+RVSLWDORUDGHQWDO RIILFH $QHVWKHVLDDQG+RVSLWDOFKDUJHVIRUGHQWDOFDUHSURYLGHGWRD0HPEHUZKRUHTXLUHVKRVSLWDOL]DWLRQ RUJHQHUDODQHVWKHVLDIRUGHQWDOVHUYLFHVGXHWRRQHRIWKHIROORZLQJUHDVRQV x WKH0HPEHULVD'HSHQGHQWXQGHUWKHDJHRI\HDUVRU x WKH0HPEHULVVHYHUHO\GLVDEOHGRU x WKH0HPEHUKDVDPHGLFDOFRQGLWLRQ 0HGLFDOO\1HFHVVDU\VXUJLFDORUQRQVXUJLFDOWUHDWPHQWRIWHPSRURPDQGLEXODUGLVRUGHU 70-70' DQGFUDQLRPDQGLEXODUGLVRUGHUDUHFRYHUHGRQWKHVDPHEDVLVDV,QSDWLHQWDQG2XWSDWLHQW+RVSLWDO DQG3K\VLFLDQ6HUYLFHVLIWKHWUHDWPHQWLVDGPLQLVWHUHGRUSUHVFULEHGE\D3K\VLFLDQRU'HQWLVW 7KHIROORZLQJDUHQRW&RYHUHG6HUYLFHV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] x RUDOPD[LOORIDFLDOVXUJHU\ ,QFOXGLQJ/H)RUWSURFHGXUHV XQOHVVUHODWHGWRD&RYHUHG6HUYLFH GHVFULEHGDERYH x UHPRYDORIWHHWK H[FHSWUHPRYDORILPSDFWHGWHHWKLVD&RYHUHG6HUYLFH x SHULRGRQWDOWUHDWPHQW x GHQWDOVSOLQWV H[FHSWIRUWKHWUHDWPHQWRIWHPSRURPDQGLEXODUGLVRUGHURUFUDQLRPDQGLEXODU GLVRUGHU ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHVDERYH8VXDO DQG&XVWRPDU\5DWHV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H '85$%/(0(',&$/(48,30(1735267+(7,&6257+27,&6$1'',6326$%/( 6833/,(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 'XUDEOH0HGLFDODIWHU'HGXFWLEOHDIWHU'HGXFWLEOH (TXLSPHQW 3URVWKHWLFV2UWKRWLFV DQG'LVSRVDEOH 6XSSOLHV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,1045,2242,1098][11][,I,][Arial]]8WLOL]DWLRQ [[375,1098,645,1151][11][,I,][Arial]]0DQDJHPHQW [[643,1098,656,1150][11][,,][Arial]] [[656,1098,1539,1150][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,1098,1611,1151][11][, I,][Arial]]3UH [[1611,1098,1626,1151][11][,I,][Arial]] [[1627,1098,1933,1151][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,1098,1945,1150][11][,,][Arial]] [[1945,1098,2303,1150][11][,,][Arial]]VXEVHFWLRQ RIWKH [[375,1150,984,1203][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1150,998,1202][11][,,][Arial]] [[998,1150,2106,1202][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,1150,2118,1202][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHWKHIROORZLQJW\SHVRI0HGLFDOO\1HFHVVDU\'XUDEOH0HGLFDO (TXLSPHQW3URVWKHWLFV2UWKRWLFVDQG'LVSRVDEOH6XSSOLHVEXWRQO\LISUHVFULEHGE\D +HDOWKFDUH3URYLGHUIRUXVHRXWVLGHRID+RVSLWDORU6NLOOHG1XUVLQJ)DFLOLW\ x 'XUDEOH0HGLFDO(TXLSPHQW +RPHUHQDOGLDO\VLVHTXLSPHQWDQGVXSSOLHV (TXLSPHQWQHFHVVDU\WRWUHDWUHVSLUDWRU\IDLOXUH )RULQVXOLQWUHDWHGGLDEHWLF0HPEHUVLQVXOLQSXPSVDQGEORRGJOXFRVH PRQLWRULQJGHYLFHV EORRGJOXFRVHPRQLWRULQJGHYLFHVPXVWEHSXUFKDVHGDWDQ ,Q1HWZRUNSKDUPDF\±VHHWKH[[1325,1891,1567,1944][11][,I,][Arial]]3UHVFULSWLRQ [[1567,1891,1580,1943][11][,,][Arial]] [[1580,1891,1702,1944][11][,I,][Arial]]'UXJV [[1702,1891,1715,1943][11][,,][A rial]] [[1715,1891,1946,1943][11][,,][Arial]]VXEVHFWLRQ [[1947,1891,2081,1943][11][,,][Arial]]RIWKLV [[2082,1891,2336,1944][11][,I,][Arial]]6FKHGXOHRI [[675,1944,841,1997][11][,I,][Arial]]%HQHILWV [[841,1944,854,1996][11][,,][Arial]] [[854,1944,1013,1996][11][,,][Arial]]VHFWLRQ [[1014,1944,1027,1996][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VRZQ'XUDEOH 0HGLFDO(TXLSPHQWLVEHLQJUHSDLUHGLVD&RYHUHG6HUYLFH 5HSODFHPHQWRI'XUDEOH0HGLFDO(TXLSPHQW 'XUDEOH0HGLFDO(TXLSPHQWWKDWD0HPEHURZQVLVSXUFKDVLQJRUUHQWLQJPD\EHUHSODFHGLQ WKHHYHQWRIORVVLUUHSDUDEOHGDPDJH GXHWRDFFLGHQWRUQDWXUDOGLVDVWHU RULUUHSDUDEOHZHDU LHGHWHULRUDWLRQGXHWRXVDJHRYHUWLPHQRWGXHWRDVSHFLILFHYHQW RUZKHQUHTXLUHG EHFDXVHRIDFKDQJHLQWKH0HPEHU¶VPHGLFDOFRQGLWLRQRUWRDFFRPPRGDWHERGLO\JURZWK 5HSODFHPHQWRI'XUDEOH0HGLFDO(TXLSPHQWGXHWRLUUHSDUDEOHZHDULVQRWD&RYHUHG6HUYLFH GXULQJWKHUHDVRQDEOHXVHIXOOLIHWLPHRIWKH'XUDEOH0HGLFDO(TXLSPHQWKRZHYHUUHSDLUFRVWV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] XSWRWKHHVWLPDWHGFRVWRIUHSODFHPHQWRIVXFKHTXLSPHQWPD\EHD&RYHUHG6HUYLFH7KLV SODQUHVHUYHVWKHULJKWWRUHHYDOXDWH0HGLFDO1HFHVVLW\RI'XUDEOH0HGLFDO(TXLSPHQW DVVRFLDWHGZLWKDUHTXHVWIRUUHSODFHPHQWRIVXFKHTXLSPHQW ,QSDWLHQW'XUDEOH0HGLFDO(TXLSPHQW3URVWKHWLFV2UWKRWLFVDQG'LVSRVDEOH6XSSOLHVDUH FRYHUHGXQGHU[[681,564,1836,617][11][,I,][Arial]],QSDWLHQWDQG2XWSDWLHQW+RVSLWDODQG3K\VLFLDQ6HUYLFHV [[1836,564,1849,616][11][,,][Arial]] [[1848,564,1861,616][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V&XVWRPHU6HUYLFH 'HSDUWPHQWDWWKHQXPEHUOLVWHGLQWKH[[1168,1792,1407,1845][11][,I,][Arial]],QWURGXFWLRQ [[1407,1792,1420,1844][11][,,][Arial]] [[1420,1792,1590,1844][11][,,][Arial]]VHFWLRQ ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVH[FHSW&RQYHQLHQFH&DUH&OLQLFVZKHQUHFHLYLQJ&RYHUHG 6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] J +20(+($/7+&$5( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU +RPH+HDOWK&DUHDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,729,2242,782][11][,I,][Arial]]8WLOL]DWLRQ [[375,781,645,834][11][,I,][Arial]]0DQDJHPHQW [[643,781,656,833][11][,,][Arial]] [[656,781,1539,833][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,781,1611,834][11][,I,][Aria l]]3UH [[1611,781,1626,834][11][,I,][Arial]] [[1627,781,1933,834][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,781,1945,833][11][,,][Arial]] [[1945,781,2303,833][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,834,984,887][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,834,998,886][11][,,][Arial]] [[998,834,1021,886][11][,,][Arial]]V [[1021,834,2105,886][11][,,][Arial]]HFWLRQIRUGHWDLOVRQKRZW RREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,834,2118,886][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHWKHIROORZLQJ3DUW7LPH&DUHRU,QWHUPLWWHQW&DUHDQGWKHUDSHXWLF VHUYLFHVIRUFRQGLWLRQVWKDWZRXOGRWKHUZLVHUHTXLUH&RQILQHPHQWLQD+RVSLWDORU6NLOOHG 1XUVLQJ)DFLOLW\ZKHQUHQGHUHGLQWKH0HPEHU¶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¶VKRXVHKROGRULVUHODWHG E\EORRGRUODZ WRWKH0HPEHU %HQHILWVDOVRDUHQRWDYDLODEOHIRUWKHDERYHVHUYLFHVSURYLGHGDWDVFKRRORUDQ\VLWHRWKHUWKDQ WKH0HPEHU¶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³EOHQGHG´VHUYLFHV LHVHUYLFHV ZKLFKLQFOXGHVNLOOHGDQGQRQVNLOOHGFRPSRQHQWV DUHFRYHUHGXQGHUWKLV3ODQ 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] K +263,&(&$5( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU +RVSLFH&DUHDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,729,2242,782][11][,I,][Arial]]8WLOL]DWLRQ [[375,781,645,834][11][,I,][Arial]]0DQDJHPHQW [[643,781,656,833][11][,,][Arial]] [[656,781,1539,833][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,781,1611,834][11][,I,][Aria l]]3UH [[1611,781,1626,834][11][,I,][Arial]] [[1627,781,1933,834][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,781,1945,833][11][,,][Arial]] [[1945,781,2303,833][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,834,984,887][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,834,998,886][11][,,][Arial]] [[998,834,2106,886][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,834,2118,886][11][,,][Arial]] &RYHUHG6HUYLFHVDUHGHVFULEHGEHORZIRU0HPEHUVZKRDUHWHUPLQDOO\LOODQGDFFHSWHGDV +RVSLFHSURJUDPSDUWLFLSDQWVXSWRDQDQQXDOPD[LPXPRIVL[PRQWKV0HPEHUVPXVWPHHW WKHHOLJLELOLW\UHTXLUHPHQWVRIWKHSURJUDPDQGHOHFWWRUHFHLYHVHUYLFHVWKURXJKWKH+RVSLFH SURJUDP6HUYLFHVZLOOEHSURYLGHGLQWKH0HPEHU¶VKRPHRU+RVSLFHIDFLOLW\ZLWKLQSDWLHQWFDUH DYDLODEOHZKHQ0HGLFDOO\1HFHVVDU\0HPEHUVZKRHOHFWWRUHFHLYH+RVSLFHVHUYLFHVGRVRLQ OLHXRIFXUDWLYHWUHDWPHQWIRUWKHLUWHUPLQDO,OOQHVVIRUWKHSHULRGWKH\DUHHQUROOHGLQWKH+RVSLFH SURJUDP &RYHUHG6HUYLFHV,QFOXGH D 3DUW7LPH&DUHSURYLGHGLQWKH0HPEHU¶VKRPHRU+RVSLFHIDFLOLW\E\DQLQWHUGLVFLSOLQDU\ +RVSLFHWHDP E &RQWL QXHG&DUHLQWKH0HPEHU¶VKRPHRU+RVSLFHIDFLOLW\LQDVHWWLQJZKLFKSURYLGHVGD\ FDUHIRUSDLQRUV\PSWRPPDQDJHPHQW F ,QSDWLHQWFDUHZKHQDSSURSULDWH ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] L ,1)(57,/,7<6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU ,QIHUWLOLW\6HUYLFHVDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,676,2242,729][11][,I,][Arial]]8WLOL]DWLRQ [[375,729,645,782][11][,I,][Arial]]0DQDJHPHQW [[643,729,656,781][11][,,][Arial]] [[656,729,1539,781][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,729,1611,782][11][,I,][Aria l]]3UH [[1611,729,1626,782][11][,I,][Arial]] [[1627,729,1933,782][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,729,1945,781][11][,,][Arial]] [[1945,729,2303,781][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,781,984,834][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,781,998,833][11][,,][Arial]] [[998,781,1747,833][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3 [[1747,781,2105,833][11][, ,][Arial]]ULRU$XWKRUL]DWLRQ [[2105,781,2118,833][11][,,][Arial]] ,QIHUWLOLW\&RYHUHG6HUYLFHVDUHYHU\OLPLWHGDQGRQO\,QFOXGHWKHIROORZLQJ D ,QLWLDOH[DPLQDWLRQUHTXLUHGWRGLDJQRVHLQIHUWLOLW\ E 'LDJQRVWLFWHVWVWRGHWHUPLQHGLDJQRVLVRILQIHUWLOLW\ 7KHUHLVQRFRYHUDJHIRUVHUYLFHVEH\RQGWKHLQLWLDOH[DPLQDWLRQDQGGLDJQRVWLFWHVWRUWHVWLQJ RQFHLQIHUWLOLW\WUHDWPHQWEHJLQV ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] M ,13$7,(17$1'2873$7,(17+263,7$/$1'3+<6,&,$16(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 3K\VLFLDQDQG5HODWHGDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 6HUYLFHV H[FHSW 3UHYHQWLYH&DUH ,QSDWLHQW+RVSLWDODIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 6HUYLFHV 1RQ (PHUJHQF\ 2XWSDWLHQW+RVSLWDODIWHU'HGXFWLEOHDIWHU'HGXFWLEOH $PEXODWRU\&DUHRU 6XUJLFDO)DFLOLW\ 6HUYLFHV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,1207,2242,1260][11][,I,][Arial]]8WLOL]DWLRQ [[375,1260,645,1313][11][,I,][Arial]]0DQDJHPHQW [[643,1260,656,1312][11][,,][Arial]] [[656,1260,1539,1312][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,1260,1611,1313][11][, I,][Arial]]3UH [[1611,1260,1626,1313][11][,I,][Arial]] [[1627,1260,1933,1313][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,1260,1945,1312][11][,,][Arial]] [[1945,1260,2303,1312][11][,,][Arial]]VXEVHFWLRQ RIWKH [[375,1313,984,1366][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1313,998,1365][11][,,][Arial]] [[998,1313,1747,1365][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3 [[1747,1313,2105,136 5][11][,,][Arial]]ULRU$XWKRUL]DWLRQ [[2105,1313,2118,1365][11][,,][Arial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rial]]2XWSDWLHQW3UHVFULSWLRQ'UXJV [[1942,2736,1955,2788][11][,,][Arial]] [[1955,2736,2321,2788][11][,,][Arial]]VXEV HFWLRQRIWKLV [[375,2788,796,2841][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[796,2788,809,2840][11][,,][Arial]] [[809,2788,1287,2840][11][,,][Arial]]VHFWLRQ ELRORJLFDODQG [[1288,2788,1314,2840][11][,,][Arial]]G [[1313,2788,1519,2840][11][,,][Arial]]LVSRVDEOH [[1520,2788,1543,2840][11][,,][Arial]]V [[1543,2788,1803,2840][11][,,][Arial]]XSSOLHVIRULQ [[1803,2788,1818,2840][11][,,][Arial]] [[1818,2788,2131,2840][11][,,][Arial]]+RVSLWDOXVHLQ [[2131,2788,2146,2840][11][,,][Arial]] [[2147,2788,2324,2840][11][,,][Arial]]+RVSLWDO XVHRIPHGLFDOHTXLSPHQWUHQDOGLDO\VLVHOHFWURFRQYXOVLYHWKHUDS\DQGSDWLHQWHGXFDWLRQ (PHUJHQF\URRPDQGXUJHQWFDUHVHUYLFHVLQSDWLHQWPDWHUQLW\VHUYLFHVWUDQVSODQWVHUYLFHV DQGGHQWDOVHUYLFHVDUHGHVFULEHGHOVHZKHUHLQWKLV[[1428,2999,1849,3052][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1848,2999,1861,3051][11][,,][Arial]] [[1861,2999,2019,3051][11][,,][Arial]]VHFWLRQ [[2019,2999,2032,3051][11][,,][Arial]] 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] S 5HFRQVWUXFWLYHRUFRVPHWLFVXUJHU\LQFLGHQWDOWRRUIROORZLQJVXUJHU\UHVXOWLQJIURP,QMXU\ RU,OOQHVVRIWKHLQYROYHGSDUW T 6XUJHU\IRUD0HPEHUXSWRDJHQLQHWHHQ IRUWKHWUHDWPHQWRIDFRQJHQLWDOGLVHDVH RUDQRPDO\WKDWKDVUHVXOWHGLQDIXQFWLRQDOGHIHFW DVGHWHUPLQHGE\WKHDWWHQGLQJ 3K\VLFLDQ LVDOVRFRYHUHGDVUHFRQVWUXFWLYHVXUJHU\ ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] N 0$7(51,7< 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU 0DWHUQLW\DIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 0DWHUQLW\&RYHUHG6HUYLFHV,QFOXGH D 5RXWLQHSUHQDWDODQGSRVWQDWDOYLVLWVDUHDGGUHVVHGLQWKH[[1708,781,1936,834][11][,I,][Arial]]3UHYHQWLYH [[1938,781,2037,834][11][,I,][Arial]]&DUH [[2036,781,2049,833][11][,,][Arial]] [[2049,781,2206,833][11][,,][Arial]]VHFWLRQ [[2207,781,2220,833][11][,,][Arial]] ,IWKH0HPEHUPRWKHULVLOOVXIIHUVDQ,QMXU\RUUHTXLUHVFDUHRWKHUWKDQURXWLQH FDUHEHQHILWVZLOOEHSURYLGHGRQWKHVDPHEDVLVDVIRUDQ\RWKHU&RYHUHG 6HUYLFHSURYLGHGFRYHUDJHLVLQHIIHFW E ,QSDWLHQWPDWHUQLW\VHUYLFHV,QFOXGLQJWKH0HPEHUPRWKHU¶VGHOLYHU\ F 7KHIROORZLQJEHQHILWVDUHDYDLODEOHIRUWKHQHZERUQ0HPEHUIURPWKHPRPHQWRIELUWK DVORQJDVWKHQHZERUQLVWLPHO\HQUROOHGLQDFFRUGDQFHZLWKWKH[[1836,1256,2116,1309][11][,I,][Arial]](OLJLELOLW\DQG [[525,1308,778,1361][11][,I,][Arial]]3DUWLFLSDWLRQ [[778,1308,791,1360][11][,,][Arial]] [[791,1308,948,1360][11][,,][Arial]]VHFWLRQ [[948,1308,961,1360][11][,,][Arial]] 5RXWLQH+RVSLWDOQXUVHU\H[SHQVHV,QFOXGLQJ D (OHFWLYHFLUFXPFLVLRQ E 5RXWLQHSHGLDWULFFDUHIRUDKHDOWK\QHZERUQFKLOGZKLOHFRQILQHGLQWKH +RVSLWDOLPPHGLDWHO\IROORZLQJELUWK,QFOXGLQJQHZERUQKHDULQJH[DPV ,IWKHEDE\LVLOOVXIIHUVDQ,QMXU\SUHPDWXUHELUWKFRQJHQLWDODEQRUPDOLW\RU UHTXLUHVFDUHRWKHUWKDQURXWLQHFDUHEHQHILWVZLOOEHSURYLGHGRQWKHVDPHEDVLV DVIRUDQ\RWKHU&RYHUHG6HUYLFHSURYLGHGFRYHUDJHLVLQHIIHFW *URXSKHDOWKSODQVJHQHUDOO\PD\QRWXQGHUWKH1HZERUQV¶DQG0RWKHUV¶+HDOWK3URWHFWLRQ$FW RIUHVWULFWEHQHILWVIRUDQ\KRVSLWDOOHQJWKRIVWD\LQFRQQHFWLRQZLWKFKLOGELUWKIRUWKH PRWKHURUQHZERUQFKLOGWROHVVWKDQKRXUVIROORZLQJDYDJLQDOGHOLYHU\RUOHVVWKDQKRXUV IROORZLQJDFHVDUHDQVHFWLRQ+RZHYHU)HGHUDOODZJHQHUDOO\GRHVQRWSURKLELWWKHPRWKHU VRU QHZERUQ DWWHQGLQJSURYLGHUDIWHUFRQVXOWLQJZLWKWKHPRWKHUIURPGLVFKDUJLQJWKHPRWKHURU KHUQHZERUQHDUOLHUWKDQKRXUV RUKRXUVDVDSSOLFDEOH ,QDQ\FDVHSODQVPD\QRW XQGHU)HGHUDOODZUHTXLUHWKDWDSURYLGHUREWDLQDXWKRUL]DWLRQIURPWKLV3ODQIRUSUHVFULELQJD OHQJWKRIVWD\QRWLQH[FHVVRIKRXUV RUKRXUV 1RWLILFDWLRQIRULQSDWLHQW+RVSLWDOPDWHUQLW\VHUYLFHVWKDWH[FHHGWKHPLQLPXPFRYHUDJHVWDWHG DERYHLVUHTXLUHGZLWKLQKRXUVRUDVVRRQDVUHDVRQDEO\SRVVLEOH7KHUHVSRQVLELOLW\IRU QRWLILFDWLRQEHORQJVWRWKH+HDOWKFDUH3URYLGHUZKHQFDUHLVUHFHLYHG,Q1HWZRUN:KHQFDUHLV UHFHLYHG2XWRI1HWZRUNQRWLILFDWLRQLVWKHUHVSRQVLELOLW\RIWKH0HPEHUDQGLVDFFRPSOLVKHGE\ FRQWDFWLQJWKH&ODLPV$GPLQLVWUDWRU¶V&XVWRPHU6HUYLFH'H SDUWPHQWDWWKHQXPEHUOLVWHGLQWKH [[375,2731,615,2784][11][,I,][Arial]],QWURGXFWLRQ [[615,2731,628,2783][11][,,][Arial]] [[628,2731,798,2783][11][,,][Arial]]VHFWLRQ [[798,2731,811,2783][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] O 0(17$/+($/7+$1'&+(0,&$/'(3(1'(1&<6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 0HQWDO+HDOWK±DIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 2XWSDWLHQW 0HQWDO+HDOWKDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH ,QSDWLHQW &KHPLFDO'HSHQGHQF\DIWHU'HGXFWLEOHDIWHU'HGXFWLEOH ±2XWSDWLHQW &KHPLFDO'HSHQGHQF\DIWHU'HGXFWLEOHDIWHU'HGXFWLEOH ,QSDWLHQW 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,1104,2230,1157][11][,I,][Arial]]8WLOL]DWLRQ [[2230,1104,2243,1157][11][,I,][Arial]] [[375,1157,645,1210][11][,I,][Arial]]0DQDJHPHQW [[643,1157,656,1209][11][,,][Arial]] [[656,1157,1539,1209][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,1157,1611,1210][11][, I,][Arial]]3UH [[1611,1157,1626,1210][11][,I,][Arial]] [[1627,1157,1933,1210][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,1157,1945,1209][11][,,][Arial]] [[1945,1157,2303,1209][11][,,][Arial]]VXEVHFWLRQ RIWKH [[375,1209,984,1262][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,1209,998,1261][11][,,][Arial]] [[998,1209,2106,1261][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,1209,2118,1261][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] P 2873$7,(17',$*1267,&7(676 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 05,&7 3(76FDQVDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 2WKHU'LDJQRVWLFDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 7HVWV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,836,2242,889][11][,I,][Arial]]8WLOL]DWLRQ [[375,889,645,942][11][,I,][Arial]]0DQDJHPHQW [[643,889,656,941][11][,,][Arial]] [[656,889,2316,941][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHVDQGGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DW LRQ [[2317,889,2330,941][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHWKHIROORZLQJWHVWVSURYLGHGUHTXHVWHGRUGLUHFWHGE\3K\VLFLDQVRU RWKHU+HDOWKFDUH3URYLGHUV x 'LDJQRVWLFODEVHUYLFHV x 'LDJQRVWLFLPDJLQJ 05,V&7VFDQV3(7VFDQVDQG[UD\V 2XWSDWLHQWGLDJQRVWLFWHVWVSHUIRUPHGLQFRQMXQFWLRQZLWKDURXWLQHSHULRGLFSUHYHQWLYHH[DPDQ RIILFHYLVLW(PHUJHQF\URRPYLVLWRU8UJHQW&DUHYLVLWDUHFRYHUHGLQWKHRWKHUVXEVHFWLRQVRI WKLV[[460,1475,880,1528][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[880,1475,893,1527][11][,,][Arial]] [[893,1475,1050,1527][11][,,][Arial]]VHFWLRQ [[1050,1475,1063,1527][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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rial]]3UH [[1984,1976,1999,2029][11][,I,][Arial]] [[1999,1976,2305,2029][11][,I,][Aria l]]6HUYLFH&ODLPV [[2305,1976,2318,2028][11][,,][Arial]] VXEVHFWLRQRIWKH[[735,2029,1343,2082][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[1344,2029,1357,2081][11][,,][Arial]] [[1356,2029,2183,2081][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] K $QWLVSDVPRWLFV HJ[[WURO [[1134,353,1342,405][11][,,][Arial]]6DQFWXUD [[1343,353,1821,405][11][,,][Arial]]6DQFWXUD;59HVLFDUH [[1822,353,1835,405][11][,,][Arial]] L 7UHWLQRLQ HJ5HWLQ$$YLWD IRU0HPEHUVRYHUDJHWZHQW\VL[ M $QWLPLFURELDOV HJ&D\VWRQ'LILFLG0RQXURO=\YR[ N 'LDEHWHVPHGLFDWLRQV HJ%\GXUHRQ%\HWWD9LFWR]D,QYRNDQD)DU[LJD O (UHFWLOHG\VIXQFWLRQPHGLFDWLRQV(UHFWLOHG\VIXQFWLRQ0HGLFDWLRQVDUHQRWFRYHUHGIRU HUHFWLOHG\VIXQFWLRQXQOHVVLWLVIURPDQRUJDQLFFDXVH $WDQ\WLPHWKLV3ODQPD\LPSOHPHQWHOHFWURQLFDSSURYDOFULWHULDRU3ULRU$XWKRUL]DWLRQRQ DGGLWLRQDO3UHVFULSWLRQ'UXJV$0HPEHUPD\FDOOWKH&ODLPV$GPLQLVWUDWRU¶V&XVWRPHU6HUYLFH 'HSDUWPHQWDWWKHQXPEHUOLVWHGLQWKH[[1168,1091,1407,1144][11][,I,][Arial]],QWURGXFWLRQ [[1407,1091,1420,1143][11][,,][Arial]] [[1420,1091,2184,1143][11][,,][Arial]]VHFWLRQZLWKTXHVWLRQVUHJDUGL QJZKHW [[2185,1091,2302,1143][11][,,][Arial]]KHUD SDUWLFXODU3UHVFULSWLRQ'UXJUHTXLUHV3ULRU$XWKRUL]DWLRQRUPD\UHTXHVWDOLVWLQJRIWKH 3UHVFULSWLRQ'UXJVWKDWUHTXLUH3ULRU$XWKRUL]DWLRQZKLFKLVDYDLODEOHDWQRFKDUJH 'LVSHQVLQJ/LPLWDWLRQV 7KLV3ODQPD\LPSRVHGLVSHQVLQJOLPLWDWLRQVRQWKHTXDQWLW\FRYHUHGSHU&RSD\PHQWIRUVSHFLILF GUXJSURGXFWVEHFDXVHRIWKHPDQXIDFWXUHU¶VSDFNDJLQJV\VWHPVRUDVGLFWDWHGE\PHGLFDOO\ DSSURSULDWHFOLQLFDOXVH 0HPEHUVKLS&DUGV 7KH0HPEHUVKLS&DUGDOVRIXQFWLRQVDVD3UHVFULSWLRQ'UXJFDUG7KH0HPEHUVKLS&DUGDQG DVVRFLDWHGEHQHILWVZLOORQO\EHUHFRJQL]HGDW,Q1HWZRUNSKDUPDFLHV :KHQD0HPEHUKDVDSUHVFULSWLRQIURPD+HDOWKFDUH3URYLGHUIRUD3UHVFULSWLRQ'UXJWKH 0HPEHUVKRXOGWDNHWKHSUHVFULSWLRQWRDQ,Q1HWZRUNSKDUPDF\DQGSUHVHQWWKHSUHVFULSWLRQ DQGKLVKHU0HPEHUVKLS&DUGWRWKHSKDUPDF\*HQHUDOO\WKH,Q1HWZRUNSKDUPDF\ZLOOILOOWKH SUHVFULSWLRQDQGFROOHFWD&RVW6KDULQJ$PRXQWIURPWKH&ODLPDQW[[1744,1987,2240,2040][11][,I,][Arial]]7KLVLVQRWFRQVLGHUHGD [[375,2040,701,2093][11][,I,][Arial]]FODLPIRUEHQHILW [[699,2040,941,2093][11][,I,][Arial]]VXQGHUWKH [[941,2040,1097,2092][11][,,][Arial]]0HGLFDO [[1098,2040,1111,2093][11][,I,][Arial]] [[1111,2040,1202,2093][11][,I,][Arial]]3ODQ [[1203,2040,1241,2092][11][,,][Arial]] [[1242,2040,1255,2092][11][,,][Arial]] 2XWRI1HWZRUN 3UHVFULSWLRQ'UXJVGLVSHQVHGE\2XWRI1HWZRUNSKDUPDFLHVDUHFRYHUHGEXWLQDGGLWLRQWR &RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHVDERYH8VXDODQG &XVWRPDU\5DWHV ,ID&ODLPDQWQHHGVD3UHVFULSWLRQ'UXJDQGDQ,Q1HWZRUNSKDUPDF\LVQRWDYDLODEOHWKH &ODLPDQWVKRXOGWDNHWKHSUHVFULSWLRQWRDQ2XWRI1HWZRUNSKDUPDF\DQGSD\WKHDPRXQW UHTXHVWHGE\WKH2XWRI1HWZRUNSKDUPDF\[[1267,2514,1280,2567][11][,I,][Arial]] [[1280,2514,1293,2567][11][,I,][Arial]] [[375,2620,1353,2673][11][,I,][Arial]]7KLVLVQRWFRQVLGHUHGDFODLPIRUEHQHILWVXQGHU [[1349,2620,1362,2673][11][,I,][Arial]] [[1362,2620,1426,2673][11][,I,][Arial]]WKH [[1425,2620,1438,2672][11][ ,,][Arial]] [[1438,2620,1594,2672][11][,,][Arial]]0HGLFDO [[1595,2620,1608,2673][11][,I,][Arial]] [[1608,2620,1725,2673][11][,I,][Arial]]3ODQ [[1726,2620,1739,2672][11][,,][Arial]] [[1739,2620,1909,2672][11][,,][Arial]]6HHWKH [[1910,2620,2314,2673][11][,I,][Arial]]0HGLFDO3ODQ&ODLP [[375,2672,854,2725][11][,I,][Arial]]DQG$SSHDO3URFHGXUHV [[855,2672,868,2724][11][,,][Arial]] [[867,2672,2280,2724][11][,,][Arial]]VHFWLRQIRULQIRUPDWLRQUHJDUGLQJKRZWRILOHD3UHVFULSWLRQ'UXJ FODLP XQGHUWKH0HGLFDO3ODQ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] R 35(9(17,9(&$5( 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR0HPEHU 3UHYHQWLYH&DUH&RLQVXUDQFH±QR'HGXFWLEOH&RLQVXUDQFH±QR'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,781,2242,834][11][,I,][Arial]]8WLOL]DWLRQ [[375,834,645,887][11][,I,][Arial]]0DQDJHPHQW [[643,834,656,886][11][,,][Arial]] [[656,834,1539,886][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,834,1611,887][11][,I,][Aria l]]3UH [[1611,834,1626,887][11][,I,][Arial]] [[1627,834,1792,887][11][,I,][Arial]]6HUYLFH [[1792,834,1932,887][11][,I,][Arial]]&ODLPV [[1932,834,1945,886][11][,,][Arial]] [[1945,834,2303,886][11][ ,,][Arial]]VXEVHFWLRQRIWKH [[375,887,984,940][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,887,998,939][11][,,][Arial]] [[998,887,2106,939][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,887,2118,939][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3UHYHQWLYH&DUH6HUYLFHV $*(6 [[934,321,945,365][9][,I,][Arial]] [[394,386,2147,427][9][,I,][Arial]]&RYHUHGSUHYHQWLYHFDUHVHUYLFHVDUHOLPLWHGWRRQFHSHUPHPEHUSHUFRYHUDJH\HDUXQOHVVRWKHUZLVHLQGLFDWHG $OO0HPEHUV!! ȱȱȱȱȱȱȱȱȱȱȱȱ (YRNHGRWRDFRXVWLFHPLVVLRQV (2$( ; RQFHDWELUWK 3URSK\ODFWLFH\HPHGLFDWLRQIRU; JRQRUUKHDRQFHDWELUWK &RQJHQLWDOK\SRWK\URLGLVPVFUHHQLQJ±; RQHWLPHRQO\EHWZHHQELUWKDQG\HDU 6LFNOHFHOOGLVHDVHVFUHHQLQJ±RQHWLPH; RQO\EHWZHHQELUWKDQG\HDU ,URQVXSSOHPHQWV±EHWZHHQ; PRQWKV $XWLVPVFUHHQLQJ;; 'HYHORSPHQWDOVFUHHQLQJ±XSWRIRXU;;; VFUHHQLQJVEHWZHHQELUWKDQGPRQWKV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3V\FKRVRFLDO%HKDYLRUDODVVHVVPHQW±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±RQFHSHUSUHJQDQF\ +,9VFUHHQLQJIRUSUHJQDQWIHPDOH ,URQGHILFLHQF\VFUHHQLQJIRUSUHJQDQWIHPDOH 5+,QFRPSDWLELOLW\VFUHHQLQJIRUSUHJQDQWIHPDOH±WZLFHSHUSUHJQDQF\ 6\SKLOLVVFUHHQLQJIRUSUHJQDQWIHPDOH &RPSUHKHQVLYHODFWDWLRQVXSSRUWDQGFRXQVHOLQJE\DWUDLQHGSURYLGHUGXULQJSUHJQDQF\DQGRULQWKH SRVWSDUWXPSHULRGDQGFRVWVIRUEUHDVWIHHGLQJHTXLSPHQW *HVWDWLRQDOGLDEHWHVVFUHHQLQJIRUSUHJQDQWIHPDOHEHWZHHQDQGZHHNVRIJHVWDWLRQDQGDWWKHILUVW 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] SUHQDWDOYLVLWIRUZRPHQLGHQWLILHGWREHDWKLJKULVNIRUGLDEHWHV 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] S 3+<6,&$/63((&+2&&83$7,21$/7+(5$3<$1'&$5',$&5(+$%,/,7$7,21 6(59,&(6 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 5HKDELOLWDWLRQDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 6HUYLFHV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,834,2242,887][11][,I,][Arial]]8WLOL]DWLRQ [[375,887,645,940][11][,I,][Arial]]0DQDJHPHQW [[643,887,656,939][11][,,][Arial]] [[656,887,1539,939][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,887,1611,940][11][,I,][Aria l]]3UH [[1611,887,1626,940][11][,I,][Arial]] [[1627,887,1933,940][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,887,1945,939][11][,,][Arial]] [[1945,887,2303,939][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,939,984,992][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,939,998,991][11][,,][Arial]] [[998,939,2106,991][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,939,2118,991][11][,,][Arial]] &RYHUHG6HUYLFHV,QFOXGHSK\VLFDORFFXSDWLRQDOVSHHFKUHVSLUDWRU\WKHUDS\RQDQLQSDWLHQWRU RXWSDWLHQWEDVLVSURYLGHGWKHVHUYLFHVFDQEHH[SHFWHGWREULQJVLJQLILFDQWLPSURYHPHQWLQWKH 0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] T 6.,//('1856,1*)$&,/,7< 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 6NLOOHG1XUVLQJ)DFLOLW\DIWHU'HGXFWLEOHDIWHU'HGXFWLEOH 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHV6HHWKH[[2032,676,2242,729][11][,I,][Arial]]8WLOL]DWLRQ [[375,729,645,782][11][,I,][Arial]]0DQDJHPHQW [[643,729,656,781][11][,,][Arial]] [[656,729,1539,781][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1540,729,1611,782][11][,I,][Aria l]]3UH [[1611,729,1626,782][11][,I,][Arial]] [[1627,729,1933,782][11][,I,][Arial]]6HUYLFH&ODLPV [[1932,729,1945,781][11][,,][Arial]] [[1945,729,2303,781][11][,,][Arial]]VXEVHFWLRQRIWKH [[375,781,984,834][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[985,781,998,833][11][,,][Arial]] [[998,781,2106,833][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3ULRU$XWKRUL]DWLRQ [[2105,781,2118,833][11][,,][Arial]] 7KHUHLVDGD\PD[LPXPSHU0HPEHUSHU&RYHUDJH<HDUIRU6NLOOHG1XUVLQJ)DFLOLW\ &RQILQHPHQWLQD6NLOOHG1XUVLQJ)DFLOLW\LQVHPLSULYDWHDFFRPPRGDWLRQVLVD&RYHUHG6HUYLFH $Q\GLIIHUHQFHEHWZHHQVHPLSULYDWHDQGSULYDWHURRPFRVWVZLOOQRWEHFRYHUHGXQOHVVDSULYDWH URRPLV0HGLFDOO\1HFHVVDU\ &RYHUDJH,QFOXGHVVNLOOHGQXUVLQJDQGWKHUDSHXWLFVHUYLFHVEXWRQO\DV0HGLFDOO\1HFHVVDU\IRU VKRUWWHUPFRQYDOHVFHQFH3K\VLFDORFFXSDWLRQDODQGVSHHFKWKHUDS\DUHFRYHUHGVXEMHFWWR WKHOLPLWVIRU5HKDELOLWDWLRQ6HUYLFHVLQWKH[[1239,1308,1659,1361][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1659,1308,1672,1360][11][,,][Arial]] [[1672,1308,1854,1360][11][,,][Arial]]VHFWLRQ [[1855,1308,1868,1360][11][,,][Arial]] ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] U 75$163/$176 6HUYLFH,Q1HWZRUNFRVWWR0HPEHU2XWRI1HWZRUNFRVWWR 0HPEHU 7UDQVSODQWVDIWHU'HGXFWLEOHDIWHU'HGXFWLEOH KRVSLWDOL]DWLRQ 7UDQVSODQWV±DIWHU'HGXFWLEOHDIWHU'HGXFWLEOH DVVRFLDWHGRIILFHYLVLWV 3ULRU$XWKRUL]DWLRQLVUHTXLUHGIRUFRYHUDJHRIFHUWDLQ&RYHUHG6HUYLFHVXQGHUWKLV3ODQ6HH WKH[[452,942,933,995][11][,I,][Arial]]8WLOL]DWLRQ0DQDJHPHQW [[931,942,944,994][11][,,][Arial]] [[944,942,1827,994][11][,,][Arial]]VHFWLRQIRUDOLVWRIWKHVHVHUYLFHV6HHWKH [[1828,942,1899,99 5][11][,I,][Arial]]3UH [[1899,942,1914,995][11][,I,][Arial]] [[1914,942,2220,995][11][,I,][Arial]]6HUYLFH&ODLPV [[2220,942,2233,994][11][,,][Arial]] VXEVHFWLRQRIWKH[[735,994,1343,1047][11][,I,][Arial]]&ODLPDQG$SSHDO3URFHGXUHV [[1344,994,1357,1046][11][,,][Arial]] [[1356,994,2183,1046][11][,,][Arial]]VHFWLRQIRUGHWDLOVRQKRZWRREWDLQ3UL RU $XWKRUL]DWLRQ 'HILQLWLRQV $XWRORJRXV D :KHQWKHVRXUFHRIFHOOVLVIURPDQLQGLYLGXDO¶VRZQPDUU RZRUVWHPFHOOV $OORJHQHLF E :KHQWKHVRXUFHRIFHOOVLVIURPDUHODWHGRUXQUHODWHGGRQRU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VPHGLFDOFRYHUDJH 'RQRUFKDUJHVLQFOXGH D 7HVWLQJWRGHWHUPLQHWUDQVSODQWIHDVLELOLW\DQGGRQRUFRPSDWLELOLW\ E 8VXDODQG&XVWRPDU\5DWHRIVHFXULQJDQRUJDQIURPWKHGRQRU,QFOXGLQJWKHVXUJHRQ¶V IHHIRUUHPRYDORIWKHRUJDQDQGWKH+RVSLWDO¶VIHHIRUWKHVWRUDJHRIWKHRUJDQ F 7UDQVSRUWDWLRQRIWKHRUJDQRUWLVVXHIURPZLWKLQWKH8QLWHG6WDWHVDQG&DQDGDWRWKH SODFHZKHUHWKHWUDQVSODQWLVWRWDNHSODFH &RYHUHG6HUYLFHVXQGHUWKLV3ODQ,QFOXGHWKHIROORZLQJ D 7KH8VXDODQG&XVWRPDU\5DWHRIVHFXULQJDQRUJDQIURPDFDGDYHURUWLVVXHEDQN ,QFOXGLQJWKHVXUJHRQ¶VIHHIRUUHPRYDORIWKHRUJDQDQGWKH+RVSLWDO¶VIHHIRUWKH VWRUDJHDQGWUDQVSRUWDWLRQRIWKHRUJDQ E 7HVWLQJWRGHWHUPLQHWUDQVSODQWIHDVLELOLW\DQGGRQRUFRPSDWLELOLW\ F $QWLUHMHFWLRQGUXJV G 3ULYDWHGXW\QXUVLQJ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H 7UDQVSRUWDWLRQH[SHQVHXSWRDOLPLWRI ,QDGGLWLRQWR&RVW6KDULQJ$PRXQWVWKH0HPEHUZLOODOVREHUHVSRQVLEOHIRUDQ\FKDUJHV DERYH8VXDODQG&XVWRPDU\5DWHVZKHQUHFHLYLQJ&RYHUHG6HUYLFHV2XWRI1HWZRUN 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $VN0D\R&OLQLF $VN0D\R&OLQLFUHJLVWHUHGQXUVHVDQVZHUKHDOWKTXHVWLRQVQRWTXHVWLRQVDERXW3ODQEHQHILWV RUFODLPV)RU3ODQRUFODLPVTXHVWLRQVFDOO&XVWRPHU6HUYLFHDWWKHQXPEHUOLVWHGLQWKH [[375,459,615,512][11][,I,][Arial]],QWURGXFWLRQ [[615,459,628,511][11][,,][Arial]] [[628,459,785,511][11][,,][Arial]]VHFWLRQ [[785,459,798,511][11][,,][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V VWDJHRIUHDGLQHVVWRFKDQJH G 5HYLHZRIPHGLFDWLRQRSWLRQVDQGLQGLYLGXDOL]HGPHGLFDWLRQSODQQLQJ H )ROORZXSFDOOVIURPDFRXQVHORUIRUFRQWLQXHGVXSSRUWDQGUHODSVHSUHYHQWLRQ I $FFHVVWR0D\RUHJLVWHUHGQXUVHVKRXUVDGD\GD\VD\HDUIRUQLFRWLQH ZLWKGUDZDOVXSSRUW 3URIHVVLRQDOFRXQVHORUVDUHDYDLODEOHIURP 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VKHDOWKDQGKHOSWKH 0HPEHUGHYHORSSHUVRQDOVWUDWHJLHVWRDVVLVWZLWKGDLO\VHOIPDQDJHPHQW F 7KH0HPEHUZLOOUHFHLYHDQHGXFDWLRQDOSDFNHWFRQWDLQLQJLQIRUPDWLRQDERXWKHDUW GLVHDVH G 7 KH0HPEHU¶VQXUVHRUFRXQVHORUZLOOVFKHGXOHSKRQHFDOOVDWWKH0HPEHU¶V FRQYHQLHQFHWRDQVZHUTXHVWLRQVDVVHVVFXUUHQWKHDOWKDQGKHOSSUHSDUHIRUWKHQH[W GRFWRUYLVLW 0D\R&OLQLF&DUGLRYDVFXODU$GYLVRU 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21; (;&/86,216 ([FOXVLRQV 1RWZLWKVWDQGLQJDQ\SURYLVLRQLQWKLV3ODQWRWKHFRQWUDU\WKLV3ODQZLOOQRWSURYLGHEHQHILWVIRU WKHIROORZLQJVHUYLFHVPHGLFDOSURFHGXUHVRUVXSSOLHVUHJDUGOHVVRI0HGLFDO1HFHVVLW\RU UHFRPPHQGDWLRQE\D+HDOWKFDUH3URYLGHU7KH0HPEHULVUHVSRQVLEOHIRURIWKHFKDUJHV DVVRFLDWHGZLWKWKHOLVWHGH[FOXVLRQV7KHVHFKDUJHVDUHQRW&RYHUHG6HUYLFHVDQGWKHUHIRUH ZLOOQRWFRXQWWRZDUGWKH$QQXDO2XWRI3RFNHW0D[LPXP,QDGGLWLRQWRWKRVHH[FOXVLRQVOLVWHG EHORZWKH[[597,828,1017,881][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1018,828,1031,880][11][,,][Arial]] [[1030,828,1805,880][11][,,][Arial]]VHFWLRQFRQWDLQVDGGLWLRQDOH[FOXVLRQV [[1807,828,1820,880][11][,,][Arial]] 1REHQHILWVDUHDYDLODEOHIRU 6HUYLFHVRUVXSSOLHVSURYLGHGEHIRUHWKH0HPEHU¶VFRYHUDJHLVHIIHFWLYHRUVHUYLFHVRU VXSSOLHVSURYLGHGDIWHUWKH0HPEHU¶VFRYHUDJHWHUPLQDWHVHYHQWKRXJKWKH0HPEHU¶V ,OOQHVVRU,QMXU\VWDUWHGZKLOHFRYHUDJHZDVLQIRUFH ([SHQVHVLQH[FHVVRI&DOHQGDU<HDU0D[LPXP%HQHILWV0D[LPXP/LIHWLPH%HQHILWV DQGPD[LPXPDOORZDQFHVDVGHWDLOHGLQWKH[[1425,1287,1845,1340][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1845,1287,1858,1339][11][,,][Arial]] [[1858,1287,2015,1339][11][,,][Arial]]VHFWLRQ [[2016,1287,2029,1339][11][,,][Arial]] 2XWRI1HWZRUNFKDUJHVIRU&RYHUHG6HUYLFHVLQH[FHVVRI8VXDODQG&XVWRPDU\5DWHV HYHQZKHQSDLGDWWKH,Q1HWZRUNEHQHILWOHYHO 7UHDWPHQWVHUYLFHVVXSSOLHVRUSURFHGXUHVWKDWDUHQRW0HGLFDOO\1HFHVVDU\H[FHSW VHUYLFHVVSHFLILFDOO\OLVWHGLQWKH[[1185,1588,1605,1641][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1606,1588,1619,1640][11][,,][Arial]] [[1618,1588,1776,1640][11][,,][Arial]]VHFWLRQ [[1776,1588,1789,1640][11][,,][Arial]] ([SHULPHQWDORU,QYHVWLJDWLYH+HDOWKFDUH6HUYLFHVSURFHGXUHVGUXJVGHYLFHVVHUYLFHV RUVXSSOLHVH[FHSWWKDWURXWLQHSDWLHQWFRVWVIXUQLVKHGLQFRQQHFWLRQZLWKDQ$SSURYHG &OLQLFDO7ULDODUHFRYHUHG5RXWLQHSDWLHQWFRVWVLQFOXGHDOOLWHPVDQGVHUYLFHVFRQVLVWHQW ZLWKWKHFRYHUDJHSURYLGHGLQWKHSODQWKDWLVW\SLFDOO\FRYHUHGIRUD0HPEHUZKRLVQRW HQUROOHGLQDFOLQLFDOWULDO5RXWLQHSDWLHQWFRVWVGRQRWLQFOXGH WKHLQYHVWLJDWLRQDOLWHP GHYLFHRUVHUYLFHLWVHOI LWHPVDQGVHUYLFHVWKDWDUHSURYLGHGVROHO\WRVDWLVI\GDWD FROOHFWLRQDQGDQDO\VLVQHHGVDQGWKDWDUHQRWXVHGLQWKHGLUHFWFOLQLFDOPDQDJHPHQWRI WKHSDWLHQWDQG DVHUYLFHWKDWLVFOHDUO\LQFRQVLVWHQWZLWKWKHZLGHO\DFFHSWHGDQG HVWDEOLVKHGVWDQGDUGVRIFDUHIRUDSDUWLFXODUGLDJQRVLV 6HUYLFHVIRURUUHODWHGWRDQ\WUHDWPHQWHTXLSPHQWGUXJDQGRUGHYLFHWKDWGRHVQRW PHHWJHQHUDOO\DFFHSWHGVWDQGDUGVRISUDFWLFHLQWKHPHGLFDOFRPPXQLW\ HJIRU FDQFHUDQGRUDOOHUJ\WHVWLQJDQGRUWUHDWPHQW 7KH3ODQVSHFLILFDOO\GRHVQRWFRYHU FKHODWLRQWKHUDS\ H[FHSWLQWKHWUHDWPHQWRIKHDY\PHWDOSRLVRQLQJ KRPHRSDWK\RU KHUEDOWKHUDS\RUQDWXURSDWK\ 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] ([SHQVHVIRUEHUHDYHPHQWFRXQVHOLQJ 6HUYLFHVRIWKHFOHUJ\ ([SHQVHVZKLFKZRXOGEHHOLJLEOHIRUSD\PHQWXQGHUDQ\SODQRUSROLF\UHTXLUHGE\ODZ ZKHWKHUWKH0HPEHUFKRVHWREHFRYHUHGXQGHUVXFKSODQRUQRWZLOOQRWEHFRQVLGHUHG HOLJLEOH ([SHQVHVIRUWUHDWPHQWIRUZKLFKWKH0HPEHULVDOVRHOLJLEOHIRUEHQHILWVXQGHUDQ\RWKHU JURXSLQVXUDQFHRUVHUYLFHSODQWKURXJKDQ\HPSOR\HU VHHWKH[[1833,745,2326,798][11][,I,][Arial]]&RRUGLQDWLRQRI%HQHILWV [[2326,745,2339,797][11][,,][Arial]] VHFWLRQ RUWKHPHGLFDOSD\PHQWRUSHUVRQDOLQMXU\VHFWLRQVRIDXWRPRELOHFDVXDOW\RU OLDELOLW\LQVXUDQFHUHJDUGOHVVRIZKHWKHUVXFKSROLF\LVRZQHGE\WKH0HPEHURUVRPH RWKHUSDUW\ZLOOQRWEHFRQVLGHUHGHOLJLEOH 6HUYLFHVWKDWDUHSDLGRUSD\DEOHXQGHUZRUNHUV¶FRPSHQVDWLRQRFFXSDWLRQDOGLVHDVH ODZRUVLPLODUODZ,QFOXGLQJH[SHQVHVIRU,QMXU\RU,OOQHVVZKLFKZHUHHOLJLEOHIRU SD\PHQWXQGHUZRUNHUV¶FRPSHQVDWLRQRUVLPLODUODZDQGKDYHUHDFKHGWKHPD[LPXP UHLPEXUVHPHQWSDLGXQGHUZRUNHUV¶FRPSHQVDWLRQRUVLPLODUODZ 6HUYLFHVWKDWDUHSDLGXQGHU0HGLFDUH U\LIEHQHILWVDUHDYDLODEOHIRUVXFK ,OOQHVV,QMXU\RUH[SHQVHVXQGHUWKHODZVRIWKH8QLWHG6WDWHVRUDQ\SROLWLFDO VXEGLYLVLRQWKHUHRI ([SHQVHVLQFXUUHGGXHWRDQ,OOQHVVRU,QMXU\UHVXOWLQJIURPWKH0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] ([SHQVHVIRU(GXFDWLRQDOPDWHULDOVDQGVXSSOLHVH[FHSWDVVSHFLILFDOO\OLVWHGLQWKH [[525,353,946,406][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[946,353,959,405][11][,,][Arial]] [[959,353,1104,405][11][,,][Arial]]VHFWLRQ [[1104,353,1141,405][11][,,][Arial]] [[1142,353,1155,405][11] [,,][Arial]] 3K\VLFDOH[DPLQDWLRQVIRUUHVHDUFKRUREWDLQLQJOLFHQVXUHHPSOR\PHQWRULQVXUDQFH RQYHQLHQFHLWHPV ,QFOXGLQJWHOHYLVLRQRUWHOHSKRQHXVH +HDOWKFOXEPHPEHUVKLSVDQGDOOVHUYLFHVSURYLGHGE\DKHDOWKFOXEIDFLOLW\DLU FRQGLWLRQHUVURRPKXPLGLILHUVURRPGHKXPLGLILHUVDLUSXULILHUVIRRGEOHQGHUVH[HUFLVH HTXLSPHQWRUWKRSHGLFRUWKHUDSHXWLFPDWWUHVVHV H[FHSWKRVSLWDOW\SHEHGVRUSUHVVXUH UHOLHYLQJPDWWUHVVHVDVSUHVFULEHGE\D3K\VLFLDQ KRPHRUDXWRPRELOHPRGLILFDWLRQ HQYLURQPHQWDOFKDQJHSRROVZKLUOSRROVDQGVLPLODULWHPVHYHQLIUHFRPPHQGHG RUGHUHGRUSUHVFULEHGE\D+HDOWKFDUH3URYLGHU ([SHQVHVIRUPXVLFWKHUDS\ ([SHQVHVIRUSHUVRQDOJURZWKGHYHORSPHQWK\SQRWKHUDS\RUVHUYLFHVIRUKROLVWLF PHGLFLQHRURWKHUSURJUDPVZLWKDQREMHFWLYHWRSURYLGHFRPSOHWHSHUVRQDOIXOILOOPHQW 9RFDWLRQDOUHKDELOLWDWLRQWHVWLQJRUWUDLQLQJ ,QFOXGLQJZRUNKDUGHQLQJ 6HOIFDUHDQGVHOIKHOSWUDLQLQJ QRQPHGLFDO ,QFOXGLQJDQ\UHODWHGGLDJQRVWLFWHVWLQJ &KDUJHVIRUVHUYLFHVRUVXSSOLHVUHODWHGWRDFDGHPLFRUYRFDWLRQDOHGXFDWLRQ 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 5RXWLQHWUHDWPHQWRIREHVLW\XQOHVVSUHVFULEHGE\DQGDFFRPSDQLHGE\DVWDWHPHQWIURP DSK\VLFLDQVWDWLQJWKH0HPEHULVPRUELGO\REHVHDQGLGHQWLI\LQJZKLFKERGLO\RUJDQV DQGIXQFWLRQVDUHIDLOLQJ 5HFRQVWUXFWLYHRUFRVPHWLFVXUJHU\VHUYLFHVGUXJVWKDWUHVWRUHRULPSURYHERGLO\ DSSHDUDQFHZLWKRXWDIIHFWLQJERG\IXQFWLRQQHFHVVDU\IRUOLIHH[FHSWDVVSHFLILFDOO\ OLVWHGDVD&RYHUHG6HUYLFHLQWKH[[1221,602,1641,655][11][,I,][Arial]]6FKHGXOHRI%HQHILWV [[1642,602,1655,654][11][,,][Arial]] [[1654,602,1812,654][11][,,][Arial]]VHFWLRQ [[1812,602,1825,654][11 ][,,][Arial]] LEXODUGLVRUGHU 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] RUGHYLFHVKDYLQJIHDWXUHVRYHUDQGDERYHWKDWZKLFK EHVWPHHWVWKH0HGLFDO1HFHVVLW\RIWKH0HPEHU 0RWRUYHKLFOHVOLIWVIRUZKHHOFKDLUVVFRRWHUVRUVWDLUOLIWV 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] &XVWRGLDO&DUHH[FHSWDVVSHFLILFDOO\OLVWHGLQWKH[[1542,301,1923,354][11][,I,][Arial]]6FKHGXOHRI%HQHI [[1917,301,1929,354][11][,I,][Arial]]L [[1927,301,1963,354][11][,I,][Arial]]WV [[1963,301,1976,353][11][,,][Arial]] [[1976,301,2121,353][11][,,][Arial]]VHFWLRQ [[2121,301,2134,353][11][,,][Arial]] [[2133,301,2146,353][11][,,][Arial]] 5HVSLWH&DUHH[FHSWDVVSHFLILFDOO\OLVWHGLQWKH[[1599,391,1932,444][11][,I,][Arial]]&RQWLQXHG&DUH [[1931,391,1944,443][11][,,][Arial]] [[1956,391,2338,443][11][,,][Arial]]VXEVHFWLRQRIWKH [[525,444,925,497][11][,I,][Arial]]6FKHGXOHRI%HQHILW [[923,444,946,497][11][,I,][Arial]]V [[946,444,959,496][11][,,][Arial]] [[959,444,1116,496][11][,,][Arial]]VHFWLRQ [[1116,444,1129,496][11][,, ][Arial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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21;, &/$,0$1'$33($/352&('85(6 ,QWURGXFWLRQ $OOFODLPVPXVWEHVXEPLWWHGWRWKH3ODQDQGDOOFODLPVUHYLHZZLOOFRPSO\ZLWK WKHUXOHVDQGSURFHGXUHVVHWIRUWKLQWKLV[[1224,564,2036,617][11][,I,][Arial]]&ODLPV3D\PHQWDQG$SSHDO3URFHGXUH [[2036,564,2049,616][11][,,][Arial]] [[2051,564,2337,616][11][,,][Arial]]VHFWLRQ 7KLV [[375,617,1243,670][11][,I,][Arial]]&ODLP&RPSODLQWDQG$SSHDO3URFHGXUHV [[1244,617,1257,669][11][,,][Arial]] [[1263,617,2337,669][11][,,][Arial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x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJQDPHDGGUHVVDQGGDWHRIELUWK x WKHGDWH V RIVHUYLFH x WKHQDPHDQGFUHGHQWLDOVRIWKH+HDOWKFDUH3URYLGHU x WKHSODFHRIVHUYLFH x DVSHFLILFGLDJQRVLVFRGH>FXUUHQW,QWHUQDWLRQDO&ODVVLILFDWLRQRI'LVHDVH &OLQLFDO0RGLILFDWLRQ ,&'&0 IRUPDW@ x DVSHFLILFVHUYLFHFRGHIRUZKLFKSD\PHQWLVUHTXHVWHG>FXUUHQW+HDOWKFDUH &RPPRQ3URFHGXUH&RGLQJ6\VWHP +&3&6 RU&XUUHQW3URFHGXUDO 7HUPLQRORJ\ &37 IRUPDW@ x WKHDPRXQWRIELOOHGFKDUJHV x LID0HPEHUKDVDOUHDG\SDLGIRUWKHPHGLFDOVHUYLFHRUVXSSO\DQGLV UHTXHVWLQJUHLPEXUVHPHQWKHVKHPXVWDOVRVXEPLWSURRIRISD\PHQW 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $FODLPIRU3UHVFULSWLRQ'UXJVPXVWEHILOHGRQD3UHVFULSWLRQ'UXJFODLPIRUP ZKLFKLVDYDLODEOHIURPWKH&ODLPV$GPLQLVWUDWRU DQGPXVWLQFOXGHWKHIROORZLQJ LQIRUPDWLRQ x WKHQDPHRIWKH3ODQWKHFDUULHUQXPEHUDQGWKHJURXSQXPEHU x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJQDPHDGGUHVVGDWHRIELUWKDQG 0HPEHULGHQWLILFDWLRQQXPEHU x WKHGDWH V RIVHUYLFH x WKHQDPHDQGFUHGHQWLDOVRIWKHKHDOWKFDUHSURYLGHU x WKHSODFHRIVHUYLFH>HJ1DWLRQDO$VVRFLDWLRQRI%RDUGVRI3KDUPDF\ 1$%3 QXPEHU@ x DVSHFLILFSURGXFWFRGHIRUZKLFKSD\PHQWLVUHTXHVWHG>FXUUHQW1DWLRQDO 'UXJ&RGH 1'& IRUPDW@WKHGRVHDQGWKHQXPEHURIGD\VVXSSO\ x WKHDPRXQWRIELOOHGFKDUJHV x LIWKHLWHPUHTXLUHG3ULRU$XWKRUL]DWLRQFOLQLFDOLQIRUPDWLRQIRUWKH3ODQWR PDNHDFRYHUDJHGHWHUPLQDWLRQ x LID0HPEHUKDVDOUHDG\SDLGIRUWKH3UHVFULSWLRQ'UXJDQGLVUHTXHVWLQJ UHLPEXUVHPHQWKHVKHPXVWDOVRVXEPLWSURRIRISD\PHQW $FODLPPXVWEHILOHGZLWKLQRQH \HDUIROORZLQJWKHGDWHRIVHUYLFH 5HVFLVVLRQ 7KH3ODQPD\5HVFLQGD0HPEHU¶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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] :ULWWHQ&RPSODLQWV7KH0HPEHUPD\VXEPLWDFRPSODLQWWRWKH &ODLPV$GPLQLVWUDWRULQZULWLQJ$FRPSODLQWIRUPPD\EH REWDLQHGE\FRQWDFWLQJDGGLWLRQDO FDOHQGDU GD\VWRQRWLI\WKH0HPEHU7KH&ODLPV$GPLQLVWUDWRUZLOOLQIRUP WKH0HPEHULQDGYDQFHRIVXFKDQH[WHQVLRQ ,IWKH&ODLPV$GPLQLVWUDWRUXSKROGVWKHRULJLQDOGHFLVLRQUHJDUGLQJ WKH0HPEHU¶VFRPSODLQWWKH0HPEHUPD\UHTXHVWDQDSSHDORI WKHFRPSODLQWGHFLVLRQDVGHVFULEHGEHORZ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $SSHDORIWKH&RPSODLQW'HFLVLRQ ,IWKH0HPEHULVQRWVDWLVILHGZLWKWKH &ODLPV$GPLQLVWUDWRU¶VFRPSODLQWGHFLVLRQWKH0HPEHUPD\DSSHDOWKHGHFLVLRQ E\UHTXHVWLQJDZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJE\WKH(PSOR\HU D 7KH0HPEHU¶VUHTXHVWPXVWEHLQZULWLQJDQGVHQWWRWKHIROORZLQJ DGGUHVV 0D\R&OLQLF+HDOWK6ROXWLRQV $WWQ0HPEHU$SSHDOV VW 6WUHHW1: 5RFKHVWHU01 E $ZULWWHQDSSHDOVKRXOGLQFOXGHWKHIROORZLQJLQIRUPDWLRQ x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPE HU,QFOXGLQJWKH0HPEHU¶VQDPHDGGUHVV DQGGDWHRIELUWK x LQIRUPDWLRQUHJDUGLQJWKHFODLPWKH0HPEHULVDSSHDOLQJVXFKDVD FRS\RIWKH([SODQDWLRQRI%HQHILWVWKHFODLPQXPEHUOLVWHGRQWKH ([SODQDWLRQRI%HQHILWVDFRS\RIWKH3ULRU$XWKRUL]DWLRQGHQLDOWKH 0HPEHUUHFHLYHGRURWKHULQIRUPDWLRQWRLGHQWLI\WKHFODLP x DVWDWHPHQWWKDWWKH0HPEHULVUHTXHVWLQJDQDSSHDODQGZKHWKHUWKH 0HPEHULVUHTXHVWLQJZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJ x DQH[SODQDWLRQRIZK\WKH0HPEHULVUHTXHVWLQJDQDSSHDO,QFOXGLQJ WKHSDUWLFXODUDVSHFWRIWKHGHQLDOWKH0HPEHULVGLVSXWLQJ x VXSSRUWLQJGRFXPHQWDWLRQ 8SRQUHTXHVWWKH&ODLPV$GPLQLVWUDWRUZLOODVVLVWWKH0HPEHUZLWK VXEPLVVLRQRIWKH0HPEHU¶VDSSHDO$0HPEHUFDQUHTXHVWDVVLVWDQFH E\FRQWDFWLQJ FDOHQGDU GD\VIURPUHFHLSWRIWKHZULWWHQQRWLFHRIWKH0HPEHU¶VDSSHDOIRUD KHDULQJ I ,IWKH0HPEHUFRQVLGHUVWKH(PSOR\HU¶VGHFLVLRQWREHSDUWLDOO\RUZKROO\ DGYHUVHWRWKH0HPEHUWKH0HPEHUPD\VXEPLWDZULWWHQUHTXHVWIRU H[WHUQDOUHYLHZRIWKHDSSHDOGHFLVLRQWRWKH0LQQHVRWD&RPPLVVLRQHURI &RPPHUFHDVGHVFULEHGLQWKH[[1460,2883,1793,2936][11][,I,][Arial]]([WHUQDO5HYLHZ [[1791,2883,1804,2935][11][,,][Arial]] [[1804,2883,2093,2935][11][,,][Arial]]VHFWLRQEHORZ [[2094,2883,2107,2935] [11][,,][Arial]] 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6WDQGDUG0HGLFDO$SSHDOV E 7KLVVHFWLRQDSSOLHVZKHQWKH0HPEHUZLVKHVWRVXEPLW DQDSSHDOZKRVHRXWFRPHUHTXLUHVDPHGLFDOGHWHUPLQDWLRQDQGWKHDSSHDOGRHVQRW PHHWWKHFULWHULDIRUDQH[SHGLWHGPHGLFDODSSHDO)RUH[SHGLWHGPHGLFDODSSHDOVVHH WKH[[602,459,1154,512][11][,I,][Arial]]([SHGLWHG0HGLFDO$SSHDOV [[1155,459,1168,511][11][,,][Arial]] [[1168,459,1191,511][11][,,][Arial]]V [[1191,459,1532,511][11][,,][Arial]]XEVHFWLRQEHORZ [[1532,459,1545,511][11][,,][Arial]] )LUVW/HYHORI$SSHDOIRU6WDQGDUG0HGLFDO'HWHUPLQDWLRQV ,IWKH0HPEHULV QRWVDWLVILHGZLWKWKH&ODLPV$GPLQLVWUDWRU¶VLQLWLDOGHFLVLRQWKH0HPEHURUWKH 0HPEHU¶VDWWHQGLQJ+HDOWKFDUH3URYLGHUPD\DSSHDO D 7KH0HPEHU¶VDSSHDOPD\EHVX EPLWWHGLQZULWLQJRUE\WHOHSKRQHZLWKLQ VL[W\ FDOHQGDUGD\VIROORZLQJWKH&ODLPV$GPLQLVWUDWRU¶VLQLWLDO GHFLVLRQ,IVXEPLWWHGLQZULWLQJWKH0HPEHU¶VDSSHDOPXVWEHVHQWWR 0D\R&OLQLF+HDOWK6ROXWLRQV $WWQ0HPEHU$SSHDOV VW 6WUHHW1: 5RFKHVWHU01 E $ZULWWHQDSSHDOVKRXOGLQFOXGHWKHIROORZLQJLQIRUPDWLRQ x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPEHU,QFOXGLQJWKH0HPEHU¶VQDPHDGGUHVV DQGGDWHRIELUWK x LQIRUPDWLRQUHJDUGLQJWKHFODLPWKH0HPEHULVDSSHDOLQJVXFKDVD FRS\RIWKH([SODQDWLRQRI%HQHILWVWKHFODLPQXPEHUOLVWHGRQWKH ([SODQDWLRQRI%HQHILWVDFRS\RIWKH3ULRU$XWKRUL]DWLRQGHQLDOWKH 0HPEHUUHFHLYHGRURWKHULQIRUPDWLRQWRLGHQWLI\WKHFODLP x DVWDWHPHQWWKDWWKH0HPEHULVUHTXHVWLQJDQDSSHDO x DQH[SODQDWLRQRIZK\WKH0HPEHULVUHTXHVWLQJDQDSSHDO,QFOXGLQJ WKHSDUWLFXODUDVSHFWRIWKHGHQLDOWKH0HPEHULVGLVSXWLQJ x VXSSRUWLQJGRFXPHQWDWLRQ WKHGRFXPHQWDWLRQUHTXLUHGPD\,QFOXGH FRSLHVRISDUWRUDOORIWKHPHGLFDOUHFRUGDQGDZULWWHQVWDWHPHQWIURP WKHDWWHQGLQJ+HDOWKFDUH3URYLGHU 8SRQUHTXHVWWKH&ODLPV$GPLQLVWUDWRUZLOODVVLVWWKH0HPEHUZLWK VXEPLVVLRQRIWKH0HPEHU¶VDSSHDO$0HPEHUFDQUHTXHVWDVVLVWDQFH E\FRQWDFWLQJ 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6XEPLWDUHTXHVWIRUH[WHUQDOUHYLHZRIWKHILUVWOHYHODSSHDO GHFLVLRQWRWKH0LQQHVRWD&RPPLVVLRQHURI&RPPHUFHDV GHVFULEHGLQWKH[[1312,406,1646,459][11][,I,][Arial]]([WHUQDO5HYLHZ [[1643,406,1656,458][11][,,][Arial]] [[1656,406,2001,458][11][,,][Arial]]VHFWLRQEHORZRU [[2000,406,2013,458][11][,,][Arial]] 5HTXHVWDVHFRQGOHYHORIDSSHDOE\WKH(PSOR\HUDVGHVFULEHG EHORZ,IWKH0HPEHUFKRRVHVWKHVHFRQGOHYHORIDSSHDODQGWKH 0HPEHUFRQVLGHUVWKH(PSOR\HU¶VGHFLVLRQWREHSDUWLDOO\RU ZKROO\DGYHUVHWRWKH0HPEHUWKH0HPEHUZLOOKDYHWKHULJKWWR VXEPLWDUHTXHVWIRUH[WHUQDOUHYLHZRIWKHVHFRQGOHYHODSSHDO GHFLVLRQWRWKH0LQQHVRWD&RPPLVVLRQHURI&RPPHUFHDV GHVFULEHGLQWKH[[1312,800,1646,853][11][,I,][Arial]]([WHUQDO5HYLHZ [[1643,800,1656,852][11][,,][Arial]] [[1656,800,1945,852][11][,,][Arial]]VHFWLRQEHORZ [[1946,800,1959,852][11][,,][Arial]] 6HFRQG/HYHORI$SSHDOIRU6WDQGDUG0HGLFDO'HWHUPLQDWLRQV ,IWKH0HPEHU LVQRWVDWLVILHGZLWKWKH&ODLPV$GPLQLVWUDWRU¶VGHFLVLRQDWWKHILUVWOHYHORIDSSHDO GHVFULEHGDERYHWKH0HPEHUPD\UHTXHVWDZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJ E\WKH(PSOR\HU D 7KH0HPEHU¶VUHTXHVWIRUDVHFRQGOHYHODSSHDOPXVWEHLQZULWLQJDQG VHQWWRWKHIROORZLQJDGGUHVVZLWKLQVL[W\ FDOHQGDUGD\VIROORZLQJWKH &ODLPV$GPLQLVWUDWRU¶VGHFLVLRQRQW KHILUVWOHYHORIDSSHDO 0D\R&OLQLF+HDOWK6ROXWLRQV $WWQ0HPEHU$SSHDOV VW 6WUHHW1: 5RFKHVWHU01 E $ZULWWHQUHTXHVWIRUDVHFRQGOHYHODSSHDOVKRXOGLQFOXGHWKHIROORZLQJ LQIRUPDWLRQ x WKHQDPHRIWKH3ODQ x WKHLGHQWLW\RIWKH0HPEH U,QFOXGLQJWKH0HPEHU¶VQDPHDGGUHVV DQGGDWHRIELUWK x LQIRUPDWLRQUHJDUGLQJWKHFODLPWKH0HPEHULVDSSHDOLQJVXFKDVD FRS\RIWKH([SODQDWLRQRI%HQHILWVWKHFODLPQXPEHUOLVWHGRQWKH ([SODQDWLRQRI%HQHILWVDFRS\RIWKH3ULRU$XWKRUL]DWLRQGHQLDOWKH 0HPEHUUHFHLYHGRURWKHULQIRUPDWLRQWRLGHQWLI\WKHFODLP x DVWDWHPHQWWKDWWKH0HPEHULVUHTXHVWLQJDVHFRQGOHYHODSSHDODQG ZKHWKHUWKH0HPEHULVUHTXHVWLQJZULWWHQUHFRQVLGHUDWLRQRUDKHDULQJ x DQH[SODQDWLRQRIZK\WKH0HPEHULVUHTXHVWLQJDVHFRQGOHYHO DSSHDO,QFOXGLQJWKHSDUWLFXODUDVSHFWRIWKHGHQLDOWKH0HPEHULV GLVSXWLQJ x VXSSRUWLQJGRFXPHQWDWLRQ WKHGRFXPHQWDWLRQUHTXLUHGPD\,QFOXGH FRSLHVRISDUWRUDOORIWKHPHGLFDOUHFRUGDQGDZULWWHQVWDWHPHQWIURP WKHDWWHQGLQJ+HDOWKFDUH3URYLGHU 8SRQUHTXHVWWKH&ODLPV$GPLQLVWUDWRUZLOODVVLVWWKH0HPEHUZLWK VXEPLVVLRQRIWKH0HPEHU¶VVHFRQGOHYHODSSHDO$0HPEHUFDQUHTXHVW DVVLVWDQFHE\FRQWDFWLQJ 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] G )LOLQJDVHFRQGOHYHORIDSSHDODXWKRUL]HVWKH(PSOR\HUWRUHYLHZWKH 0HPEHU¶VPHGLFDOUHFRUGVUHODWHGWRWKHVHFRQGOHYHORIDSSHDODV QHHGHGWRUHVROYHVXFKDSSHDO H ,QWKHFDVHRIDZULWWHQUHFRQVLGHUDWLRQWKH(PSOR\HUZLOOSURYLGHQRWLFH RILWVGHFLVLRQWRWKH0HPEHUZLWKLQWKLUW\ FDOHQGDUGD\VIURPUHFHLSW RIZULWWHQQRWLFHRIWKH0HPEHU¶VVHFRQGOHYHODSSHDOUHTXHVW LQJZULWWHQ UHFRQVLGHUDWLRQ I ,QWKHFDVHRIDKHDULQJWKH(PSOR\HUZLOOSURYLGHZULWWHQQRWLFHRIWKH KHDULQJSDQHO¶VGHFLVLRQWRWKH0HPEHUZLWKLQIRUW\ILYH FDOHQGDU GD\VIURPUHFHLSWRIWKHZULWWHQQRWLFHRIWKH0HPEHU¶VVHFRQGOHYHO DSSHDOUHTXHVWLQJDKHDULQJ J ,IWKH0HPEHUFRQVLGHUVWKH(PSOR\HU¶VGHFLVLRQWREHSDUWLDOO\RUZKROO\ DGYHUVHWRWKH0HPEHUWKH0HPEHUZLOOKDYHWKHULJKWWRVXEPLWD UHTXHVWIRUH[WHUQDOUHYLHZRIWKHVHFRQGOHYHOH[SHGLWHGDSSHDOGHFLVLRQ WRWKH0LQQHVRWD&RPPLVVLRQHURI&RPPHUFHDVGHVFULEHGLQWKH [[825,1191,1159,1244][11][,I,][Arial]]([WHUQDO5HYLHZ [[1157,1191,1170,1243][11][,,][Arial]] [[1170,1191,1459,1243][11][,,][Arial]]VHFWLRQEHORZ [[1460,1191,1473,1243][11][,,][Arial]] ([SHGLWHG0HGLFDO$SSHDOV F 7KLVVHFWLRQDSSOLHVZKHQDQLQLWLDOGHFLVLRQQRWWRJUDQWD 3ULRU$XWKRUL]DWLRQUHTXHVW RUFRQWLQXDWLRQRIDQLQSDWLHQWVWD\ LVPDGHSULRUWRRU GXULQJDQRQJ RLQJVHUYLFHUHTXLULQJ3ULRU$XWKRUL]DWLRQDQGWKH0HPEHU¶VDWWHQGLQJ +HDOWKFDUH3URYLGHUEHOLHYHVWKDWWKHGHFLVLRQZDUUDQWVDQH[SHGLWHGDSSHDO )LUVW/HYHORI$SSHDOIRU([SHGLWHG0HGLFDO'HWHUPLQDWLRQV ,IWKH0HPEHULV QRWVDWLVILHGZLWKWKH&ODLPV$G PLQLVWUDWRU¶VLQLWLDOGHFLVLRQRQD3ULRU $XWKRUL]DWLRQUHTXHVWWKH0HPEHURUWKH0HPEHU¶VDWWHQGLQJ+HDOWKFDUH 3URYLGHUPD\DSSHDOWKHLQLWLDOGHFLVLRQ D $0HPEHURUWKH0HPEHU¶VDWWHQGLQJ+HDOWK&DUH3URYLGHUPD\VXEPLW DQH[SHGLWHGILUVWOHYHODSSHDOE\WHOHSKRQHE\FDOOLQJ E 7KH&ODLPV$GPLQLVWUDWRUZLOOQRWLI\WKH0HPEHUDQGWKH0HPEHU¶V DWWHQGLQJ+HDOWKFDUH3URYLGHUE\WHOHSKRQHRILWVGHFLVLRQQRODWHUWKDQ VHYHQW\WZR 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] RIH[SHGLWHGDSSHDOGHVFULEHGDERYHWKH0HPEHUPD\UHTXHVWDQH[SHGLWHG VHFRQGOHYHODSSHDOE\WKH(PSOR\HU D $0HPEHURUWKH0HPEHU¶VD WWHQGLQJ+HDOWK&DUH3URYLGHUPD\VXEPLW DQH[SHGLWHGVHFRQGOHYHODSSHDOE\WHOHSKRQHE\FDOOLQJ,2026,917,2078][11][,,][Arial]]&RPSODLQWV [[922,2026,2337,2078][11][,,][Arial]]UHJDUGLQJIUDXGXOHQWPDUNHWLQJSUDFWLFHVRUDJHQWPLVUHSUHVH QWDWLRQ FDQQRWEHVXEPLWWHGIRUH[WHUQDOUHYLHZ 3ODQ,QWHUSUHWDWLRQ 7KH3ODQZLOOEHDGPLQLVWHUHGLQDFFRUGDQFHZLWKLWVWHUPV7KH(PSOR\HU &ODLPV$GPLQLVWUDWRUDQGRUDQ\RWKHUILGXFLDU\DFWLQJDVDILGXFLDU\ZLWKUHVSHFWWRWKH3ODQWR WKHH[WHQWWKDWVXFKLQGLYLGXDORUHQWLW\LVDFWLQJLQLWVILGXFLDU\FDSDFLW\VKDOOKDYHWKHFRPSOHWH DQGILQDODXWKRULW\UHVSRQVLELOLW\DQGFRQWUROLQLWVVROHGLVFUHWLRQWRPDQDJHDGPLQLVWHUDQG RSHUDWHWKH3ODQWRPDNHIDFWXDOILQGLQJVWRFRQVWUXHWKHWHUPVRIWKH3ODQDQGWRGHWHUPLQH DOOTXHVWLRQVDULVLQJLQFRQQHFWLRQZLWKWKHDGPLQLVWUDWLRQLQWHUSUHWDWLRQDQGDSSOLFDWLRQRIWKH 3ODQ,QFOXGLQJWKHHOLJLELOLW\DQGFRYHUDJHRILQGLYLGXDOVDQGWKHDXWKRUL]DWLRQRUGHQLDORI SD\PHQWRUUHLPEXUVHPHQWRIEHQHILWV$OOGHWHUPLQDWLRQVDQGGHFLVLRQVZLOOEHELQGLQJRQWKH 3ODQSHUVRQVFRYHUHGXQGHUWKH3ODQFODLPDQWVDQGDOOLQWHUHVWHGSDUWLHV 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21;,, &225',1$7,212)%(1(),76 &RRUGLQDWLRQRI*URXS&RYHUDJH &RRUGLQDWLRQRIEHQHILWVZLOOEHSHUIRUPHGLQDFFRUGDQFH ZLWKDSSOLFDEOHVWDWHODZ,QFOXGLQJ0LQQHVRWD6WDWXWH$DQG&KDSWHUFRYHULQJWKH0HPEHUWKLV3ODQPD\EHD 3ULPDU\3ODQDVWRRQHRUPRUH2WKHU,QVXUDQFH3ODQDQGPD\EHD6HFRQGDU\ 3ODQDVWRDGLIIHUHQWSODQRUSODQV G $OORZDEOH([SHQVH$QHFHVVDU\UHDVRQDEOHDQGFXVWRPDU\LWHPRIH[SHQVHIRU KHDOWKFDUHZKHQWKHLWHPRIH[SHQVHLVFRYHUHGDWOHDVWLQSDUWE\RQHRUPRUH LQVXUDQFHSODQVFRYHULQJWKH0HPEHUIRUZKRPWKHFODLPLVPDGH 7KHGLIIHUHQFHEHWZHHQWKHFRVWRIDSULYDWH+RVSLWDOURRPDQGWKHFRVWRIDVHPL SULYDWH+RVSLWDOURRPLVQRWFRQVLGHUHGDQ$OORZDEOH([SHQVHXQOHVVWKH0HPEHU¶VVWD\ LQDSULYDWH+RVSLWDOURRPLV0HGLFDOO\1HFHVVDU\HLWKHULQWHUPVRIJHQHUDOO\DFFHSWHG PHGLFDOSUDFWLFHRUDVVSHFLILFDOO\GHILQHGLQWKLV3ODQ 8QGHUWKLV3ODQDQRXWSDWLHQW3UHVFULSWLRQ'UXJLVQRWFRQVLGHUHGDQ$OORZDEOH ([SHQVH 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] :KHQDQLQVXUDQFHSODQSURYLGHVEHQHILWVLQWKHIRUPRIVHUYLFHVWKHUHDVRQDEOHFDVK YDOXHRIHDFKVHUYLFHUHQGHUHGZLOOEHFRQVLGHUHGERWKDQ$OORZDEOH([SHQVHDQGD EHQHILWSDLG H &ODLP'HWHUPLQDWLRQ3HULRG$&DOHQGDU<HDU+RZHYHULWGRHVQRWLQFOXGHDQ\SDUWRI D\HDUGXULQJZKLFKDQ0HPEHUKDGQRFRYHUDJHXQGHUWKLV3ODQRUDQ\SDUWRID\HDU EHIRUHWKHGDWHWKLV&2%SURYLVLRQRUVLPLODUSURYLVLRQWDNHVHIIHFW I 2WKHU,QVXUDQFH3ODQ)RUSXUSRVHVRIWKLV&2%SURYLVLRQ³2WKHU,QVXUDQFH3ODQ´ PHDQVDQ\RIWKHIROORZLQJZKLFKSURYLGHEHQHILWVRUVHUYLFHVIRURUEHFDXVHRIPHGLFDO RUGHQWDOFDUHRUWUHDWPHQW *URXSLQVXUDQFHRUJURXSW\SHFRYHUDJHZKHWKHULQVXUHGRUXQLQVXUHG ,QFOXGLQJVHOILQVXUHG WKDWLQFOXGHVFRQWLQXRXVKRXUFRYHUDJH7KLV LQFOXGHVSUHSD\PHQWJURXSSUDFWLFHLQGLYLGXDOSUDFWLFHFRYHUDJHDQGDV SHUPLWWHGE\VWDWHODZLQFOXGHVWKHPHGLFDOEHQHILWVLQDQDXWRPRELOH³QRIDXOW´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x 7KH2WKHU,QVXUDQFH3ODQKDVUXOHVFRRUGLQDWLQJLWVEHQHILWVZLWKWKRVHRI WKLV3ODQDQG x %RWKWKRVHUXOHVDQGWKHUXOHVRIWKLV3ODQ GHVFULEHGLQSDUDJUDSK F UHTXLUHWKDWWKLV3ODQ¶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³SDUHQWV´ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] x 7KHEHQHILWVRIWKHSODQRIWKHSDUHQWZKRVHELUWKGD\IDOOVHDUOLHULQWKH &DOHQGDU<HDUDUHGHWHUPLQHGEHIRUHWKRVHRIWKHSODQRIWKHSDUHQW ZKRVHELUWKGD\IDOOVODWHULQWKH&DOHQGDU<HDUEXW x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x )LUVWWKHSODQRIWKHSDUHQWZLWKFXVWRG\RIWKHFKLOG x 7KHQWKHSODQRIWKHVSRXVHRIWKHSDUHQWZLWKFXVWRG\RIWKHFKLOG x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¶VGHSHQGHQW DUHGHWHUPLQHGEHIRUHWKRVHRIDSODQZKLFKFRYHUVWKDWSHUVRQDVDODLGRIIRU UHWLUHGHPSOR\HH RUDVWKDWHPSOR\HH¶VGHSHQGHQW ,IWKH2WKHU,QVXUDQFH3ODQ GRHVQRWKDYHWKLVUXOHDQGLIDVDUHVXOWWKHSODQVGRQRWDJUHHRQWKHRUGHURI EHQHILWVWKLVUXOH LVLJQRUHG /RQJHU6KRUWHU/HQJWKRI&RYHUDJH,IQRQHRIWKHDERYHUXOHVGHWHUPLQHVWKH RUGHURIEHQHILWVWKHEHQHILWVRIWKHSODQWKDWFRYHUHGWKH0HPEHUORQJHUDUH GHWHUPLQHGEHIRUHWKRVHRIWKHSODQWKDWFRYHUHGWKDW0HPEHUIRUWKHVKRUWHU WLPH (IIHFWRQWKH%HQHILWVRIWKLV3ODQ L :KHQWKLV6HFWLRQ$SSOLHV7KLVVHFWLRQDSSOLHVZKHQLQDFFRUGDQFHZLWKWKH[[2154,2414,2337,2467][11][,I,][Arial]]2UGHURI [[525,2466,1096,2519][11][,I,][Arial]]%HQHILW'HWHUPLQDWLRQ5XOHV [[1096,2466,1109,2518][11][,,][Arial]] [[1109,2466,2337,2518][11][,,][Arial]]VXEVHFWLRQWKLV3ODQLVD6HFRQGDU\3ODQDVWRRQHRU PRUH 2WKHU,QVXUDQFH3ODQV,QWKDWHYHQWWKHEHQHILWVRIWKLV3ODQPD\EHUHGXFHGXQGHU WKLVVHFWLRQ6XFKRWKHUSODQRUSODQVLVDUHUHIHUUHGWRDV³2WKHU,QVXUDQFH3ODQV´LQ SDUDJUDSK E EHORZ M 5HGXFWLRQLQWKLV3ODQ¶V%HQHILWV7KHEHQHILWVRIWKLV3ODQZLOOEHUHGXFHGZKHQWKH VXPRIWKHIROORZLQJH[FHHGVWKH$OORZDEOH([SHQVHVLQD&ODLP'HWHUPLQDWLRQ3HULRG 7KHEHQHILWVWKDWZRXOGEHSD\DEOHIRUWKH$OORZDEOH([SHQVHVXQGHUWKLV3ODQLQ WKHDEVHQFHRIWKLV&2%SURYLVLRQDQG 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶V UHSUHVHQWDWLYH(DFK0HPEHUFODLPLQJEHQHILWVXQGHUWKLV3ODQPXVWSURYLGHWKH3ODQZLWKDQ\ IDFWVLWQHHGVWRSD\WKHFODLP RI x WKHSHUVRQVLWKDVSDLGRUIRUZKRPLWKDVSDLG x LQVXUDQFHFRPSDQLHVRU x RWKHURUJDQL]DWLRQV 7KH³DPRXQWRIWKHSD\PHQWPDGH´LQFOXGHVWKHUHDVRQDEOHFDVKYDOXHRIDQ\EHQHILWVSURYLGHG LQWKHIRUPRIVHUYLFHV 6XEURJDWLRQDQG5HLPEXUVHPHQW D ,IWKH3ODQSD\VEHQHILWVIRUPHGLFDORUGHQWDOH[SHQVHVD0HPEHULQFXUVDVDUHVXOWRI DQ\DFWRIDWKLUGSDUW\IRUZKLFKWKHWKLUGSDUW\LVRUPD\EHOLDEOHDQGWKH0HPEHUODWHU REWDLQVIXOOUHFRYHU\WKH0HPEHULVREOLJDWHGWRUHLPEXUVHWKH3ODQIRUWKHEHQHILWVSDLG LQDFFRUGDQFHZLWK0LQQHVRWD6WDWXWHV$DQG$ E 7KH3ODQ¶VULJKWWRUHLPEXUVHPHQWDQGVXEURJDWLRQLVVXEMHFWWRVXEWUDFWLRQIRUDFWXDO PRQLHVSDLGWRDFFRXQWIRUWKHSURUDWDVKDUHRIWKH0HPEHU¶VFRVWVGLVEXUVHPHQWVDQG UHDVRQDEOHDWWRUQH\IHHVDQGRWKHUH[SHQVHVLQFXUUHGLQREWDLQLQJWKHUHFRYHU\IURP DQRWKHUVRXUFHXQOHVVWKH3ODQLVVHSDUDWHO\UHSUHVHQWHGE\LWVRZQDWWRUQH\,IWKH3ODQ LVVHSDUDWHO\UHSUHVHQWHGE\DQDWWRUQH\WKH3ODQPD\HQWHULQWRDQDJUHHPHQWZLWKWKH 0HPEHUUHJDUGLQJWKH0HPEHU¶VFRVWVGLVEXUVHPHQWVDQGUHDVRQDEOHDWWRUQH\IHHV DQGRWKHUH[SHQVHV,IWKH3ODQDQGWKH0HPEHUFDQQRWUHDFKDJUHHPHQWRQVXFK DOORFDWLRQWKHPDWWHURIDOORFDWLRQVKDOOEHVXEPLWWHGWRELQGLQJDUELWUDWLRQ F 1RWKLQJKHUHLQVKDOOOLPLWWKH3ODQ¶VULJKWWRUHFRYHU\IURPDQRWKHUVRXUFHWKDWPD\ RWKHUZLVHH[LVWDWODZ)RUSXUSRVHVRIWKLVSURYLVLRQIXOOUHFRYHU\GRHVQRWLQFOXGH SD\PHQWVPDGHE\DKHDOWKSODQWRRUIRUWKH0HPEHU¶VEH QHILW7KH0HPEHULV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] H[SHFWHGWRFRRSHUDWHZLWKWKH3ODQLQDVVLVWLQJWKH3ODQWRSURWHFWLWVOHJDOULJKWVXQGHU WKLVSURYLVLRQ G ,ID0HPEHUPDNHVDFODLPDJDLQVWDWKLUGSDUW\IRUGDPDJHVWKDWLQFOXGHUHSD\PHQWIRU PHGLFDODQGPHGLFDOO\UHODWHGH[SH QVHVLQFXUUHGIRUWKH0HPEHU¶VEHQHILWWKH0HPEHU PXVWSURYLGHWLPHO\ZULWWHQQRWLFHWRWKH3ODQRIWKHSHQGLQJRUSRWHQWLDOFODLP7KH3ODQ PD\DWLWVRSWLRQWDNHVXFKDFWLRQDVPD\EHDSSURSULDWHDQGQHFHVVDU\WRSUHVHUYHLWV ULJKWVXQGHUWKLVVXEURJDWLRQSURYLVLRQLQFOXGLQJWKHULJKWWRLQWHUYHQHLQDQ\ODZVXLWWKH 0HPEHUKDVFRPPHQFHGZLWKDWKLUGSDUW\1RWZLWKVWDQGLQJDQ\RWKHUODZWRWKH FRQWUDU\WKHVWDWXWHRIOLPLWDWLRQVDSSOLFDEOHWRWKH3ODQ¶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¶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rial]]3OHDVHQRWH [[930,2728,943,2781][11][,I,][Arial]] [[975,2728,2336,2781][11][,I,][Arial]],ID0HPEHU$JHRUROGHULVFRYHUHGDVDUHWLUHHRU'HSHQGHQW [[675,2781,1107,2834][11][,I,][Arial]]RIDUHWLUHHDQGLVH [[1107,2781,2336,2834][11][,I,][Arial]]OLJLEOHIRURUHQWLWOHGWR0HGLFDUHEXWQRWDFWXDOO\FRYHUHG [[675,2834,2337,2887][11][,I,][Arial]]XQGHU0HGLFDUH3ODQEHQHILWVZLOOEHUHGXFHGE\WKHDPRXQW0HGLFDUHZRXOG [[675,2887,1727,2940][11][,I,][Arial]]KDYHSDLGLI0HGLFDUHFRYHUDJHKDGEHHQLQHIIHFW [[1728,2887,1741,2939][11][,,][Arial]] 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VPHGLFDOWUHDWPHQWIRU ZKLFKWKH3ODQZRXOGKDYHKDGDOHJDOOLDELOLW\WRSD\EHQHILWVXQGHUWKH3ODQZLOOEH SDLGLQDFFRUGDQFHZLWKDQ\DSSOLFDEOHVWDWHODZZKLFKSURYLGHVWKDWWKHVWDWHKDV DFTXLUHGWKHULJKWWRSD\PHQWIRUVXFKPHGLFDOWUHDWPHQW :RUNHUV¶&RPSHQVDWLRQ &RYHUDJHXQGHUWKH3ODQLVQRWLQOLHXRIZRUNHUV¶FRPSHQVDWLRQ DQGGRHVQRWDIIHFWDQ\DVSHFWRIFRYHUDJHXQGHUZRUNHUV¶FRPSHQVDWLRQ 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 6(&7,21;,,, *(1(5$/3529,6,216 $SSOLFDEOH/DZ 7KLV3ODQLVLQWHQGHGWREHFRQVWUXHGDQGDOOULJKWVDQGGXWLHVKHUHXQGHUDUH WREHJRYHUQHGLQDFFRUGDQFHZLWKWKHODZVRIWKH6WDWHRI0LQQHVRWDH[FHSWWRWKHH[WHQWVXFK ODZVDUHSUHHPSWHGE\WKHODZVRIWKH8QLWHG6WDWHVRI$PHULFD &RQIRUPLW\ZLWK*RYHUQLQJ/DZ ,IDQ\SURYLVLRQRIWKLV3ODQLVFRQWUDU\WRDQ\ODZWRZKLFKLWLVVXEMHFWVXFKSURYLVLRQLVKHUHE\ DPHQGHGWRFRQIRUPWKHUHWR 6HFWLRQ7LWOHV 6HFWLRQWLWOHVDUHIRUFRQYHQLHQFHRQO\DQGDUHQRWWREHFRQVLGHUHGLQLQWHUSUHWLQJWKLV3ODQ 1R*XDUDQWHHRI(PSOR\PHQW 3DUWLFLSDWLRQLQWKLV3ODQZLOOQRWEHFRQVWUXHGDVJLYLQJD0HPEHUDQ\ULJKWWRFRQWLQXHLQWKH HPSOR\RIWKH(PSOR\HU$Q\(PSOR\HHZLOOUHPDLQVXEMHFWWRGLVFKDUJHE\WKH(PSOR\HUWRWKH VDPHH[WHQWKDGWKLV3ODQQRWEHHQDGRSWHG 3ODQ3URYLVLRQV%LQGLQJ 8QOHVVRWKHUZLVHUHTXLUHGXQGHUDSSOLFDEOHODZWKHSURYLVLRQVRIWKLV3ODQZLOOEHELQGLQJXSRQ DOO0HPEHUVDQGWKHLUUHVSHFWLYHKHLUVDQGOHJDOUHSUHVHQWDWLYHVXSRQWKH(PSOR\HULWV VXFFHVVRUVDQGDVVLJQVDQGXSRQWKH3ODQ$GPLQLVWUDWRU&ODLPV$GPLQLVWUDWRUDQGDQ\RWKHU SURYLGHURIVHUYLFHVWRWKLV3ODQ &RQVWUXFWLRQRI7HUPV :RUGVRIJHQGHUZLOOLQFOXGHSHUVRQVDQGHQWLWLHVRIDQ\JHQGHU7KHSOXUDOZLOOLQFOXGHWKH VLQJXODUDQGWKHVLQJXODUZLOOLQFOXGHWKHSOXUDO HUHTXLUHPHQWVXQGHU DSSOLFDEOHVHFWLRQVRIWKH,QWHUQDO5HYHQXH&RGHRI,IWKH3ODQ$GPLQLVWUDWRU GHWHUPLQHVEHIRUHRUGXULQJDQ\3ODQ\HDUWKDWWKLV3ODQPD\IDLOWRVDWLVI\DQ\ QRQGLVFULPLQDWLRQUHTXLUHPHQWLPSRVHGE\WKH,QWHUQDO5HYHQXH&RGHRIRUDQ\ OLPLWDWLRQRQEHQHILWVSURYLGHGWRKLJKO\FRPSHQVDWHGLQGLYLGXDOVWKH3ODQ$GPLQLVWUDWRU VKDOOWDNHVXFKDFWLRQDVWKH3ODQ$GPLQLVWUDWRUGHHPVDSSURSULDWHXQGHUUXOHV XQLIRUPO\DSSOLFDEOHWRVLPLODUO\VLWXDWHG6XEVFULEHUVWRDVVXUHFRPSOLDQFHZLWKVXFK UHTXLUHPHQWVRUOLPLWDWLRQ &ODLPV$XGLW ,QDGGLWLRQWRWKH3ODQ¶VPHGLFDOUHFRUGUHYLHZSURFHVVWKH3ODQ$GPLQLVWUDWRUPD\XVHLWV GLVFUHWLRQDU\DXWKRULW\WRXWLOL]HDQLQGHSHQGHQWELOOUHYLHZDQGRUFODLPDXGLWSURJUDPRUVHUYLFH IRUDFRPSOHWHFODLP$OOFODLPVDUHVXEMHFWWRELOOUHYLHZDQGRUDXGLW &ODLPVPD\EHUHYLHZHGDQGRUDXGLWHGWRLGHQWLI\FKDUJHVELOOHGLQHUURUDQGRUFKDUJHVWKDW DUHQRW8VXDODQG&XVWRPDU\DQGRU0HGLFDOO\1HFHVVDU\LIDQ\DQGPD\LQFOXGHDSDWLHQW PHGLFDOELOOLQJUHFRUGVUHYLHZDQGRUDXGLWRIWKHSDWLHQW¶VPHGLFDOFKDUWVDQGUHFRUGV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 8SRQFRPSOHWLRQRIDELOOUHYLHZDQGRUFODLPDXGLWDFODLPPD\EHUHSURFHVVHGDQGDQ\ H[FHVVSD\PHQWUHFRYHUHGRQEHKDOIRIWKH3ODQ (UURQHRXV3D\PHQWV ,IWKH3ODQPDNHVDSD\PHQWIRUEHQHILWVLQH[FHVVRIWKHEHQHILWVUHTXLUHGE\WKH3ODQRUPDNHV DSD\PHQWWRRURQEHKDOIRIDQLQGLYLGXDOZKRLVQRWFRYHUHGE\WKH3ODQWKH3ODQVKDOOEH HQWLWOHGWRUHFRYHUVXFKHUURQHRXVSD\PHQWIURPWKHUHFLSLHQWRIVXFKHUURQHRXVSD\PHQW DQGRUWKHEHQHILFLDU\RIVXFKHUURQHRXVSD\PHQW 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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¶VULJKWWRUHFHLYHEHQHILWVKHUHXQGHULVSHUVRQDOWRWKDW0HPEHUDQGPD\ QRWEHDVVLJQHGRUEHVXEMHFWWRDQWLFLSDWLRQJDUQLVKPHQWDWWDFKPHQWH[HFXWLRQRUOHY\RI DQ\NLQGRUEHOLDEOHIRUWKHGHEWVRUREOLJDWLRQVRID0HPEHUH[FHSWIRUDVVLJQPHQWRIWKHULJKW WRUHFHLYHEHQHILWVWRD+HDOWKFDUH3URYLGHU:LWKUHVSHFWWRDQ\DVVLJQPHQWWRD+HDOWKFDUH 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 3URYLGHUWKDW+HDOWKFDUH3URYLGHULVVXEMHFWWRWKHVDPHWHUPVDQGFRQGLWLRQVXQGHUWKLV3ODQ DVWKH0HPEHU 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman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imes New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] $77$&+0(17$ +,3$$35,9$&<$1'6(&85,7< 'HILQLWLRQV 7KHWHUPVXVHGLQWKLV[[1283,558,1420,611][11][,I,][Arial]]+,3$$ [[1421,558,1434,610][11][,,][Arial]] [[1436,558,1871,611][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1875,558,2338,610][11][,,][Arial ]]DWWDFKPHQWVKDOOKDYH WKHGHILQLWLRQVDVFULEHGLQ+,3$$DQGLWVLPSOHPHQWLQJUHJXODWLRQV (PSOR\HU¶V&HUWLILFDWLRQRI&RPSOLDQFH 1HLWKHUWKH3ODQQRUDQ\KHDOWKLQVXUDQFH LVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJWKH3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWK LQIRUPDWLRQWRWKH(PSOR\HUXQOHVVWKH(PSOR\HUFHUWLILHVWKDWWKH3ODQGRFXPHQWVKDYH EHHQDPHQGHGWRLQFRUSRUDWHWKLV[[1223,847,1360,900][11][,I,][Arial]]+,3$$ [[1361,847,1374,899][11][,,][Arial]] [[1374,847,1805,900][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1805,847,2337,899][11][, ,][Arial]]DWWDFKPHQWDQGDJUHHVWR DELGHE\WKLV[[796,900,933,953][11][,I,][Arial]]+,3$$ [[933,900,946,952][11][,,][Arial]] [[946,900,1376,953][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1377,900,1616,952][11][,,][Arial]]DWWDFKPHQW [[1616,900,1629,952][11][,,][Arial]] 3XUSRVHRI'LVFORVXUHWR(PSOR\HU 7KH3ODQDQGDQ\KHDOWKLQVXUDQFHLVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJWKH 3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQWRWKH(PSOR\HURQO\WR SHUPLWWKH(PSOR\HUWRFDUU\RXWSODQDGPLQLVWUDWLRQIXQFWLRQVIRUWKH3ODQQRW LQFRQVLVWHQWZLWKWKHUHTXLUHPHQWVRIWKH+HDOWK,QVXUDQFH3RUWDELOLW\DQG $FFRXQWDELOLW\$FWRIDQGLWVLPSOHPHQWLQJUHJXODWLRQV &)53DUWV $Q\GLVFORVXUHWRDQGXVHE\WKH(PSOR\HURI0HPEHUV¶SURWHFWHGKHDOWK LQIRUPDWLRQZLOOEHVXEMHFWWRDQGFRQVLVWHQWZLWKWKHSURYLVLRQVRISDUDJUDSKV DQGRIWKLV[[938,1424,1075,1477][11][,I,][Arial]]+,3$$ [[1076,1424,1089,1476][11][,,][Arial]] [[1089,1424,1518,1477][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1519,1424,1758,1476][11][,,][Arial]]DW WDFKPHQW [[1758,1424,1771,1476][11][,,][Arial]] 1HLWKHUWKH3ODQQRUDQ\KHDOWKLQVXUDQFHLVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJ WKH3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQWRWKH(PSOR\HU XQOHVVWKHGLVFORVXUHVDUHH[SODLQHGLQWKH1RWLFHRI3ULYDF\3UDFWLFHVGLVWULEXWHG WR6XEVFULEHUV 1HLWKHUWKH3ODQQRUDQ\KHDOWKLQVXUDQFHLVVXHURUEXVLQHVVDVVRFLDWHVHUYLFLQJ WKH3ODQZLOOGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQWRWKH(PSOR\HUIRU WKHSXUSRVHRIHPSOR\PHQWUHODWHGDFWLRQVRUGHFLVLRQVRULQFRQQHFWLRQZLWKDQ\ RWKHUEHQHILWRUHPSOR\HHEHQHILWSODQRIWKH(PSOR\HU 5HVWULFWLRQVRQ(PSOR\HU¶V8VHDQG'LVFORVXUHRI3URWHFWHG+HDOWK,QIRUPDWLRQ 7KH(PSOR\HUZLOOQHLWKHUXVHQRUIXUWKHUGLVFORVH0HPEHUV¶SURWHFWHGKHDOWK LQIRUPDWLRQH[FHSWDVSHUPLWWHGRUUHTXLUHGE\WKH3ODQGRFXPHQWVDV DPHQGHGRUUHTXLUHGE\ODZ 7KH(PSOR\HUZLOOHQVXUHWKDWDQ\DJHQWLQFOXGLQJDQ\VXEFRQWUDFWRUWRZKRPLW SURYLGHV0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQDJUHHVWRWKHUHVWULFWLRQVDQG FRQGLWLRQVRIWKH3ODQGRFXPHQWVLQFOXGLQJWKLV[[1726,2340,1804,2393][11][,I,][Arial]]+,3 [[1802,2340,1864,2393][11][,I,][Arial]]$$ [[1864,2340,1877,2392][11][,,][Arial]] [[1887,2340,2337,2393][11 ][,I,][Arial]]3ULYDF\DQG6HFXULW\ DWWDFKPHQWZLWKUHVSHFWWR0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQ 7KH(PSOR\HUZLOOQRWXVHRUGLVFORVH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQIRU HPSOR\PHQWUHODWHGDFWLRQVRUGHFLVLRQVRULQFRQQHFWLRQZLWKDQ\RWKHUEHQHILW RUHPSOR\HHEHQHILWSODQRIWKH(PSOR\HU 7KH(PSOR\HUZLOOUHSRUWWRWKH3ODQDQ\XVHRUGLVFORVXUHRI0HPE HUV¶SURWHFWHG KHDOWKLQIRUPDWLRQWKDWLVLQFRQVLVWHQWZLWKWKHXVHVDQGGLVFORVXUHVDOORZHG XQGHUWKLV[[909,2759,1046,2812][11][,I,][Arial]]+,3$$ [[1047,2759,1060,2811][11][,,][Arial]] [[1069,2759,1519,2812][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1530,2759,2337,2811][11][,,][Arial]]DWWDF KPHQWSURPSWO\XSRQOHDUQLQJRI VXFKLQFRQVLVWHQWXVHRUGLVFORVXUH 7KH(PSOR\HUZLOOPDNHSURWHFWHGKHDOWKLQIRUPDWLRQDYDLODEOHWRWKH0HPEHU ZKRLVWKHVXEMHFWRIWKHLQIRUPDWLRQLQDFFRUGDQFHZLWK&RGHRI)HGHUDO 5HJXODWLRQV 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] 7KH(PSOR\HUZLOOPDNH0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQDYDLODEOHIRU DPHQGPHQWDQGZLO ORQQRWLFHDPHQG0HPEHUV¶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¶ SURWHFWHGKHDOWKLQIRUPDWLRQUHFHLYHGIURPWKH3ODQRUDKHDOWKLQVXUDQFHLVVXHU RUEXVLQHVVDVVRFLDWHVHUYLFLQJWKH3ODQ 7KHHPSOR\HHVFODVVHVRIHPSOR\HHVRURWKHUZRUNIRUFHPHPEHUVLGHQWLILHG DERYHZLOOKDYHDFFHVVWR0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQRQO\WRSHUI RUP WKHSODQDGPLQLVWUDWLRQIXQFWLRQVWKDWWKH(PSOR\HUSURYLGHVIRUWKH3ODQ 7KHHPSOR\HHVFODVVHVRIHPSOR\HHVRURWKHUZRUNIRUFHPHPEHUVLGHQWLILHG DERYHZLOOEHVXEMHFWWRGLVFLSOLQDU\DFWLRQDQGVDQFWLRQVLQFOXGLQJWHUPLQDWLRQRI 3DFNHW3J 'E [[225,75,236,123][10][,I,][Times New Roman]] [[2326,75,2337,123][10][,I,][Times New Roman]] HPSOR\PHQWRUDIILOLDWLRQZLWKWKH(PSOR\HUIRUDQ\XVHRUGLVFORVXUHRI 0HPEHUV¶SURWHFWHGKHDOWKLQIRUPDWLRQLQEUHDFKRUYLRODWLRQRIRUQRQFRPSOLDQFH ZLWKWKHSURYLVLRQVRIWKLV[[1204,406,1341,459][11][,I,][Arial]]+,3$$ [[1342,406,1355,458][11][,,][Arial]] [[1355,406,1787,459][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1789,406,2054,458][11][,,][Ar ial]]DWWDFKPHQW [[2055,406,2248,458][11][,,][Arial]](PSOR\HU [[2249,406,2262,458][11][,,][Arial]] [[2262,406,2338,458][11][,,][Arial]]ZLOO SURPSWO\UHSRUWVXFKEUHDFKYLRODWLRQRUQRQFRPSOLDQFHWRWKH3ODQDVUHTXLUHG E\SDUDJUDSK G RIWKLV[[1256,512,1393,565][11][,I,][Arial]]+,3$$ [[1394,512,1407,564][11][,,][Arial]] [[1420,512,1878,565][11][,I,][Arial]]3ULYDF\DQG6HFXULW\ [[1893,512,2337,564][11][,,][Arial]]DWWDFKPHQWDQ GZLOO FRRSHUDWHZLWKWKH3ODQWRFRUUHFWWKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFHWR LPSRVHDSSURSULDWHGLVFLSOLQDU\DFWLRQRUVDQFWLRQVRQHDFKHPSOR\HHRURWKHU ZRUNIRUFHPHPEHUFDXVLQJWKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFHDQGWR PLWLJDWHDQ\GHOHWHULRXVHIIHFWRIWKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFHRQDQ\ 3DUWLFLSDQWWKHSULYDF\RIZKRVHSURWHFWHGKHDOWKLQIRUPDWLRQPD\KDYHEHHQ FRPSURPLVHGE\WKHEUHDFKYLRODWLRQRUQRQFRPSOLDQFH 7KH(PSOR\HUZLOOHQVXUHWKDWWKHSURYLVLRQVRIWKLV[[1877,905,2337,958][11][,I,][Arial]]$GHTXDWH6HSDUDWLRQ [[675,958,949,1011][11][,I,][Arial]]%HWZHHQWKH [[957,958,1155,1011][11][,I,][Arial]](PSOR\HU [[1151,958,1164,1011][11][,I,][Arial]] [[1170,958,1441,1011][11][,I,][Arial]]DQGWKH3ODQ [[1441,958,1454,1010][11][,,][Arial]] [[1460,958,2338,1010][11][,,][Arial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²(OLJLELOLW\DQG3DUWLFLSDWLRQ ,QLWLDOHQUROOPHQWZDLWLQJSHULRGZDVILUVWGD\RIWKHPRQWKIROORZLQJFDOHQGDUGD\VRIHPSOR\PHQW &KDQJHGWR ILUVWGD\RIWKHPRQWKIROORZLQJGDWHRIKLUH D$QQXDOHQUROOPHQWDGGLWLRQ±ZDVOLPLWHGWRQHZKLUHDQGRUTXDOLILHGOLIHHYHQWV 3UHH[LVWLQJFRQGLWLRQVOLPLWDWLRQVKDYHEHHQUHPRYHG (PSOR\HHDQGIDPLO\FRYHUDJHRSWLRQVKDYHEHHQH[SDQGHGWRWLHUVHPSOR\HHRQO\HPSOR\HHVSRXVHHPSOR\ [[214,467,227,524][12][,I,][Arial]] HHFKLOG UHQ DQGIDPLO\ 6HFWLRQ,9²8WLOL]DWLRQ0DQDJHPHQW 3ULRUDXWKRUL]DWLRQVHUYLFHVKDYHEHHQH[SDQGHGKRZHYHUEHQHILWFRYHUDJHVUHPDLQWKHVDPH6HUYLFHVUHFHLYHGRXW RIQHWZRUNZLWKRXWSULRUDXWKRUL]DWLRQLVVXEMHFWWRSHQDOW\WKDWGRHVQRWDSSO\WRWKHGHGXFWLEOHFRLQVXUDQFHRU RXWRISRFNHWPD[LPXPV 6HFWLRQ9,²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±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«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±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±DOOPHP EHUV±UHPRYDORIWKHELHQQLDOSK\VLFDOH[DPLQDWLRQIRUPUHTXLUHPHQW E5RXWLQH&DQFHU6FUHHQLQJVFRLQVXUDQFH &KDQJHGWRFRYHUDJH±DOOPHPEHUV $GGFRORUHFWDO OXQJDQGRYDULDQFDQFHUVFUHHQLQJVGXHWRIDPLO\KLVWRU\±UHJDUGOHVVRIDJH F5RXWLQHH\HH[DPVDQGUHIUDFWLRQVIRUVXEVFULEHURQO\XSWRDPD[LPXPEHQHILWHYHU\RWKHUFDOHQGDU \HDURIRQHH[DP &KDQJHGWRFRYHUDJH±DOOPHPEHUV G5RXWLQHKHDULQJH[DPVIRUVXEVFULEHURQO\XSWRDPD[LPXPEHQHILWHYHU\RWKHUFDOHQGDU\HDURIRQH H[DP &KDQJHGWRFRYHUDJH±DOOPHPEHUV H,PPXQL]DWLRQFRYHUD JHIRUGHSHQGHQWVDJHWRVXEVFULEHU¶VLPPXQL]DWLRQEHQHILWDSSOLHGWRWKH PD[LPXPWKHQQRFRYHUDJH1RFRYHUDJHLILPPXQL]DWLRQZDVUHFHLYHGRXWVLGHRIWKHSUHYHQWLYHURXWLQH H[DP6KLQJOHYDFFLQHIRUVXEVFULEHUEHQHILWDSSOLHGWRSUHYHQWLYHVHUYLFHVWKHQQRFRYHUDJH1RSUHYHQ WLYHVHUYLFHRIILFHYLVLWFRYHUDJHIRUVSRXVHRUFKLOGUHQRYHUDJH &KDQJHGWRFRYHUDJH±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´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ƌŝĚĂLJ͕^ĞƉƚĞŵďĞƌϵ͕ϮϬϭϰ DĂLJŽŝǀŝĐĞŶƚĞƌ ŽŶŶĂƌĞǁƐ͕džĞĐƵƚŝǀĞŝƌĞĐƚŽƌ ϯϬŝǀŝĐĞŶƚĞƌƌŝǀĞ^ ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭ ZĞ͗>ŝŵŝƚĞĚ^ŝƚĞ/ŶǀĞƐƚŝŐĂƚŝŽŶĨŽƌƚŚĞWƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶ DĂLJŽŝǀŝĐĞŶƚĞƌ ĞĂƌDƌƐ͘ƌĞǁƐ͗ /ŶƌĞƐƉŽŶƐĞƚŽLJŽƵƌƌĞƋƵĞƐƚ͕DĐ'ŚŝĞΘĞƚƚƐ͕ĂŝǀŝƐŝŽŶŽĨt^ΘƐƐŽĐŝĂƚĞƐ͕ /ŶĐ͘;Dͬt^ͿŝƐƉůĞĂƐĞĚƚŽƉƌĞƐĞŶƚĂƉƌŽƉŽƐĂůĨŽƌĐŽŶĚƵĐƚŝŶŐĂůŝŵŝƚĞĚƐŝƚĞ ŝŶǀĞƐƚŝŐĂƚŝŽŶ;>^/ͿĨŽƌƚŚĞDĂLJŽŝǀŝĐĞŶƚĞƌWƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶůŽĐĂƚĞĚ ŝŶ^ĞĐƚŝŽŶϯϲŽĨĂƐĐĂĚĞdŽǁŶƐŚŝƉ;dϭϬϳEZϭϰtͿŝŶƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌŝŶ KůŵƐƚĞĚŽƵŶƚLJDŝŶŶĞƐŽƚĂ͘dŚĞĂƚƚĂĐŚĞĚƉƌŽƉŽƐĂůŽƵƚůŝŶĞƐƚŚĞƐĐŽƉĞŽĨ ƐĞƌǀŝĐĞƐĂƐǁĞůůĂƐƚŚĞƋƵĂůŝĨŝĐĂƚŝŽŶƐŽĨDĐ'ŚŝĞΘĞƚƚƐƚŽƉĞƌĨŽƌŵƚŚŝƐǁŽƌŬ͘ DĐ'ŚŝĞΘĞƚƚƐƉƌŝĚĞƐŝƚƐĞůĨŽŶƉƌŽǀŝĚŝŶŐĂŚŝŐŚůĞǀĞůŽĨƐĞƌǀŝĐĞĂŶĚĐŽŵƉĞƚŝƚŝǀĞ ƉƌŝĐŝŶŐƚŽŽƵƌĐůŝĞŶƚƐ͘KƵƌϲϬнLJĞĂƌƐŽĨƐĞƌǀŝĐĞĂŶĚƚŚĞŶƵŵĞƌŽƵƐƌĞƉĞĂƚĐůŝĞŶƚƐ ĚĞŵŽŶƐƚƌĂƚĞŽƵƌĂďŝůŝƚLJƚŽĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚĐůŝĞŶƚƐĂŶĚŵĂŝŶƚĂŝŶƚŚĞ ŝŵƉŽƌƚĂŶĐĞŽĨƚŚĞŝƌƉƌŽũĞĐƚ͘ dŚĞƐƚĂĨĨĂƚDͬt^ŝƐĞdžĐŝƚĞĚĂďŽƵƚƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽĚĞŵŽŶƐƚƌĂƚĞŽƵƌ ĐĂƉĂďŝůŝƚŝĞƐƚŽLJŽƵŝŶĐŽŵƉůĞƚŝŽŶŽĨƚŚŝƐǁŽƌŬ͘/ĨLJŽƵŚĂǀĞĂŶLJƋƵĞƐƚŝŽŶƐĂďŽƵƚ ƚŚĞƉƌŽƉŽƐĂů͕LJŽƵŵĂLJĐŽŶƚĂĐƚŵĞĂƚϱϬϳ Ͳ Ϯϭϴ Ͳ ϯϯϴϴ͘ ^ŝŶĐĞƌĞůLJ͕ DĐ'ŚŝĞΘĞƚƚƐ͕ĂŝǀŝƐŝŽŶŽĨt^ΘƐƐŽĐŝĂƚĞƐ͕/ŶĐ͘ :ĞĨĨĞƌLJ^͘ƌŽďĞƌŐEŝĐŽůĞ>ĞŚŵĂŶ W'͕ZDŶǀŝƌŽŶŵĞŶƚĂů^ĐŝĞŶƚŝƐƚ 3DFNHW3J 'D [[298,226,1256,301][16][B,I,][Times New Roman]]6WDWHPHQWRI2EMHFWLYHVDQG*RDOV DĐ'ŚŝĞΘĞƚƚƐŚĂƐďĞĞŶƌĞƋƵĞƐƚĞĚƚŽĐŽŵƉůĞƚĞĂƉƌŽƉŽƐĂůƚŽĐŽŶĚƵĐƚĂĨŝůĞƌĞǀŝĞǁŽĨŚŝƐƚŽƌŝĐƌĞĐŽƌĚƐ ĂŶĚĂůŝŵŝƚĞĚƐŝƚĞŝŶǀĞƐƚŝŐĂƚŝŽŶ;>^/ͿĨŽƌƚŚĞĨŽůůŽǁŝŶŐ^ŝƚĞ͗ DĂLJŽŝǀŝĐĞŶƚĞƌ>ĞŐĂůĞƐĐƌŝƉƚŝŽŶ͗^ĞĐƚŝŽŶϯϲ͕ĂƐĐĂĚĞdŽǁŶƐŚŝƉ ϯϬŝǀŝĐĞŶƚĞƌƌŝǀĞdϭϬϳE͕Zϭϰt ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϰKůŵƐƚĞĚŽƵŶƚLJ tĞƵŶĚĞƌƐƚĂŶĚƚŚƌĞĞŐĞŽƚĞĐŚŶŝĐĂůďŽƌŝŶŐƐ;Wηϭ Ͳ ϯͿǁĞƌĞĂĚǀĂŶĐĞĚĂƚƚŚĞƐŝƚĞĚƵƌŝŶŐƚŚĞǁĞĞŬŽĨ ^ĞƉƚĞŵďĞƌϭ͕ϮϬϭϰƚŽĂŝĚŝŶƚŚĞďƵŝůĚŝŶŐĚĞƐŝŐŶĨŽƌƚŚĞDĂLJŽŝǀŝĐĞŶƚĞƌƉƌŽƉŽƐĞĚŬŝƚĐŚĞŶĂĚĚŝƚŝŽŶ͘ ƵƌŝŶŐƚŚĞŐĞŽƚĞĐŚŶŝĐĂůŝŶǀĞƐƚŝŐĂƚŝŽŶƐŽŝůďŽƌŝŶŐWηϮŚĂĚĂĚŝƐƚŝŶĐƚƉĞƚƌŽůĞƵŵŽĚŽƌĂŶĚŚŝŐŚ WŚŽƚŽŝŽŶŝnjĂƚŝŽŶĞƚĞĐƚŽƌ;W/ͿƌĞĂĚŝŶŐŽĨϭϬϬƉƉŵǁŝƚŚŝŶƚŚĞϵ͘ϱƚŽϭϰĨŽŽƚŝŶƚĞƌǀĂůďĞůŽǁŐƌĂĚĞ͘hƉŽŶ ĚŝƐĐŽǀĞƌLJŽĨƚŚŝƐŝŶĐŝĚĞŶƚƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌŶŽƚŝĨŝĞĚƚŚĞDŝŶŶĞƐŽƚĂƵƚLJKĨĨŝĐĞƌ͕ŵŝůLJ;ηϳϳͿŽŶ ^ĞƉƚĞŵďĞƌϵ͕ϮϬϭϰĂŶĚŽďƚĂŝŶĞĚĂƵƚLJKĨĨŝĐĞƌƌĞƉŽƌƚŝŶŐŶƵŵďĞƌηϭϰϰϴϰϲ͘/ŶĂĚĚŝƚŝŽŶ͕ĂůůƐŽŝůďŽƌŝŶŐƐ ;Wηϭ Ͳ ϯͿƐŝƚƵĂƚĞĚĂůŽŶŐƚŚĞƉƌŽƉŽƐĞĚĨŽƵŶĚĂƚŝŽŶĨŽŽƚƉƌŝŶƚĨŽƵŶĚŵŝdžĞĚĚĞŵŽůŝƚŝŽŶĚĞďƌŝƐƚŽĂĚĞƉƚŚŽĨ ϴ Ͳ ϭϰĨĞĞƚ͕ĂůŽŶŐǁŝƚŚƚŚĞĚŝƐĐŽǀĞƌLJŽĨĐůŝŶŬĞƌͬƐůĂŐ͕ĐŽŶĐƌĞƚĞĂŶĚŽƚŚĞƌƵŶŝĚĞŶƚŝĨŝĂďůĞŶŽŶ Ͳ ƐŽŝůŵĂƚĞƌŝĂůƐ͘ dŚĞŵĂƚĞƌŝĂůĞŶĐŽƵŶƚĞƌĞĚŝƐƐŝŵŝůĂƌƚŽǁŚĂƚǁĂƐĚŝƐĐŽǀĞƌĞĚŽŶƚŚĞďĂŶŬƐŽĨƚŚĞƵŵďƌŽZŝǀĞƌĚƵƌŝŶŐƚŚĞ ZŽĐŚĞƐƚĞƌĨůŽŽĚĐŽŶƚƌŽůƉƌŽũĞĐƚ͘'ƌŽƵŶĚǁĂƚĞƌǁĂƐĞŶĐŽƵŶƚĞƌĞĚƚŽĂĚĞƉƚŚŽĨĂƉƉƌŽdžŝŵĂƚĞůLJϭϯĨĞĞƚ͘ ĂƐĞĚƵƉŽŶĚŝƐĐŽǀĞƌLJŽĨƚŚĞŝŶĐŝĚĞŶƚƌĞůĂƚŝǀĞƚŽƚŚĞůŽĐĂƚŝŽŶŽĨƚŚĞƉƌŽƉŽƐĞĚŬŝƚĐŚĞŶĂĚĚŝƚŝŽŶĨŽŽƚŝŶŐƐ͕ ƉƌŽƉŽƐĞĚĐŽŶƐƚƌƵĐƚŝŽŶĚĞƉƚŚĂŶĚƚŚĞƵŶŬŶŽǁŶĞdžƚĞŶƚŽĨƚŚĞƐŽŝůĐŽŶƚĂŵŝŶĂƚŝŽŶŽƌǁĂƐƚĞĐĂƚĞŐŽƌLJǁĞ ƵŶĚĞƌƐƚĂŶĚƚŚĞĨŽůůŽǁŝŶŐǁŽƌŬŝƐŶĞĞĚĞĚ͗ ŽŶĚƵĐƚĂŚŝƐƚŽƌŝĐĨŝůĞƌĞǀŝĞǁŽĨƚŚĞDͬt^͕ŝƚLJŽĨZŽĐŚĞƐƚĞƌĂŶĚDŝŶŶĞƐŽƚĂWŽůůƵƚŝŽŶŽŶƚƌŽů ŐĞŶĐLJ;DWͿƌĞĐŽƌĚƐƚŽůĞĂƌŶǁŚĂƚǁĂƐƉƌĞǀŝŽƵƐůLJĚŝƐĐŽǀĞƌĞĚŝŶƚŚĞƐƵďƐƵƌĨĂĐĞƌĞůĂƚŝǀĞƚŽƚŚĞ ƉƌŽƉŽƐĞĚŬŝƚĐŚĞŶĂĚĚŝƚŝŽŶ KƌĚĞƌZĚŽĐƵŵĞŶƚƐƚŚĂƚŝŶĐůƵĚĞƐŚŝƐƚŽƌŝĐĂůĂĞƌŝĂůƉŚŽƚŽƐ͕ĐŝƚLJĚŝƌĞĐƚŽƌŝĞƐ͕ĂŶĚŚŝƐƚŽƌŝĐĂů ƚŽƉŽŐƌĂƉŚŝĐŵĂƉƐĂŶĚ^ĂŶĚďŽƌŶŵĂƉƐƚŽďĞƚƚĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞƉĂƐƚƵƐĞŽĨƚŚĞƉƌŽƉĞƌƚLJĂŶĚ ƉŽƚĞŶƚŝĂůĐŽŶƚĂŵŝŶĂƚŝŽŶǁŝƚŚŝŶƚŚĞƐƵďƐƵƌĨĂĐĞ WĞƌĨŽƌŵĂůŝŵŝƚĞĚƐŝƚĞŝŶǀĞƐƚŝŐĂƚŝŽŶǁŚĞƌĞƐŽŝů͕ŐƌŽƵŶĚǁĂƚĞƌĂŶĚƐŽŝůŐĂƐƐĂŵƉůĞƐĨŽƌůĂďŽƌĂƚŽƌLJ ĂŶĂůLJƐŝƐĂƌĞĐŽůůĞĐƚĞĚ ^ƵƌǀĞLJƚŚĞďŽƌŝŶŐůŽĐĂƚŝŽŶƐĂŶĚƉƌĞƉĂƌĞďŽƌŝŶŐůŽŐƐŝŶĂĐĐŽƌĚĂŶĐĞƚŽƚŚĞhŶŝĨŝĞĚ^Žŝů ůĂƐƐŝĨŝĐĂƚŝŽŶ^LJƐƚĞŵ;h^^Ϳ /ŶƚĞƌƉƌĞƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂůƐĂŵƉůĞƌĞƐƵůƚƐďĂƐĞĚŽŶĞƐƚĂďůŝƐŚĞĚDW^ŽŝůZĞĨĞƌĞŶĐĞsĂůƵĞƐ ;^ZsƐͿĨŽƌƐŽŝů͕DŝŶŶĞƐŽƚĂĞƉĂƌƚŵĞŶƚŽĨ,ĞĂůƚŚ;D,Ϳ,ĞĂůƚŚZŝƐŬ>ŝŵŝƚƐ;,Z>ƐͿĨŽƌ ŐƌŽƵŶĚǁĂƚĞƌĂŶĚDW/ŶƚƌƵƐŝŽŶ^ĐƌĞĞŶŝŶŐsĂůƵĞƐ;/^sƐͿĨŽƌƐŽŝůǀĂƉŽƌƐ WƌĞƉĂƌĞĂĨŝŶĂů>^/ƌĞƉŽƌƚĂŶĚƉƌŽǀŝĚĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂŶĚŐƵŝĚĂŶĐĞƌĞůĂƚĞĚƚŽƚŚĞƉƌŽƉŽƐĞĚ ŬŝƚĐŚĞŶĂĚĚŝƚŝŽŶ ŽŽƌĚŝŶĂƚŝŽŶǁŝƚŚƚŚĞŝƚLJ͕d^WĂŶĚƚŚĞDW WƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶ>^/ DĂLJŽŝǀŝĐĞŶƚĞƌ͘ WĂŐĞͮϭ 3DFNHW3J 'D [[299,274,1244,349][16][B,I,][Times New Roman]]3URMHFW$SSURDFK 0HWKRGRORJ\ dŚĞƉƌŽƉŽƐĞĚ>^/ĂŶĚƚĂƐŬƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚŝƐǁŽƌŬĂƌĞ͗ KƌĚĞƌZĚŽĐƵŵĞŶƚƐƚŚĂƚŝŶĐůƵĚĞƐŚŝƐƚŽƌŝĐĂůĂĞƌŝĂůƉŚŽƚŽƐ͕ĐŝƚLJĚŝƌĞĐƚŽƌŝĞƐ͕ŚŝƐƚŽƌŝĐĂů ƚŽƉŽŐƌĂƉŚŝĐŵĂƉƐĂŶĚ^ĂŶĚďŽƌŶŵĂƉƐƚŽďĞƚƚĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞƉĂƐƚƵƐĞŽĨƚŚĞƉƌŽƉĞƌƚLJĂŶĚ ƉŽƚĞŶƚŝĂůĐŽŶƚĂŵŝŶĂƚŝŽŶǁŝƚŚŝŶƚŚĞƐƵďƐƵƌĨĂĐĞ ŽŶĚƵĐƚĂŚŝƐƚŽƌŝĐĨŝůĞƌĞǀŝĞǁŽĨƚŚĞDͬt^͕ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DWĂŶĚZƌĞĐŽƌĚƐƚŽůĞĂƌŶ ǁŚĂƚǁĂƐƉƌĞǀŝŽƵƐůLJĚŝƐĐŽǀĞƌĞĚŝŶƚŚĞƐƵďƐƵƌĨĂĐĞƌĞůĂƚŝǀĞƚŽƚŚĞƉƌŽƉŽƐĞĚŬŝƚĐŚĞŶĂĚĚŝƚŝŽŶ ĨŽŽƚƉƌŝŶƚ WĞƌĨŽƌŵĂůŝŵŝƚĞĚƐŝƚĞŝŶǀĞƐƚŝŐĂƚŝŽŶ;>^/ͿďLJĂĚǀĂŶĐŝŶŐϴ'ĞŽƉƌŽďĞďŽƌŝŶŐƐϭϬ Ͳ ϮϬĨĞĞƚďĞůŽǁ ŐƌĂĚĞǁŝƚŚŝŶƚŚĞƉƌŽƉŽƐĞĚŬŝƚĐŚĞŶĂĚĚŝƚŝŽŶĨŽŽƚƉƌŝŶƚĂŶĚĂƐƐŽĐŝĂƚĞĚĚŝƐƚƵƌďĞĚƉĂƌŬŝŶŐĂƌĞĂ ^ƵƌǀĞLJƐŽŝůďŽƌŝŶŐůŽĐĂƚŝŽŶƐĂŶĚƉƌĞƉĂƌĞďŽƌŝŶŐůŽŐƐŝŶĂĐĐŽƌĚĂŶĐĞƚŽƚŚĞhŶŝĨŝĞĚ^Žŝů ůĂƐƐŝĨŝĐĂƚŝŽŶ^LJƐƚĞŵ;h^^Ϳ ŽůůĞĐƚƐŽŝůĂŶĚŐƌŽƵŶĚǁĂƚĞƌƐĂŵƉůĞƐĨŽƌůĂďŽƌĂƚŽƌLJĂŶĂůLJƐŝƐĂŶĚƉĞƌĨŽƌŵƐŽŝůŐĂƐƐĂŵƉůŝŶŐ ŽŵƉůĞƚĞĐŚĂŝŶŽĨĐƵƐƚŽĚLJĚŽĐƵŵĞŶƚĂƚŝŽŶ͕ƉƌŽĐĞƐƐĂŶĚƉĂĐŬĂŐĞƐĂŵƉůĞƐĨŽƌůĂďŽƌĂƚŽƌLJ ĂŶĂůLJƐŝƐĂƚWĂĐĞŶĂůLJƚŝĐĂů^ĞƌǀŝĐĞƐůŽĐĂƚĞĚŝŶDŝŶŶĞĂƉŽůŝƐ͕DEĨŽƌƉŽůLJĐŚůŽƌŝŶĂƚĞĚďŝƉŚĞŶLJůƐ ;WͿ͕ƉŽůLJĐŚůŽƌŝŶĂƚĞĚĂƌŽŵĂƚŝĐŚLJĚƌŽĐĂƌďŽŶƐ;W,Ϳ͕ƐĞŵŝ Ͳ ǀŽůĂƚŝůĞŽƌŐĂŶŝĐĐŽŵƉŽƵŶĚƐ ;^sKͿ͕ǀŽůĂƚŝůĞŽƌŐĂŶŝĐĐŽŵƉŽƵŶĚƐ;sKͿ͕ĚŝĞƐĞůƌĂŶŐĞŽƌŐĂŶŝĐƐ;ZKͿ͕ŐĂƐŽůŝŶĞƌĂŶŐĞ ŽƌŐĂŶŝĐƐ;'ZKͿ͕dŽdžŝĐŝƚLJŚĂƌĂĐƚĞƌŝƐƚŝĐ>ĞĂĐŚŝŶŐWƌŽĐĞĚƵƌĞ;d>WͿĨŽƌϴ Ͳ ZZŵĞƚĂůƐĂŶĂůLJƐŝƐ ΎΎWůĞĂƐĞŶŽƚĞǁŚŝůĞƚŚĞĞƐƚŝŵĂƚĞŝŶĐůƵĚĞƐƚŚĞŵŽƐƚ ĂŶĚdK Ͳ ϭϱĨŽƌƐŽŝůŐĂƐǀĂƉŽƌƐĂŶĂůLJƐŝƐ͘ ĞdžƚĞŶƐŝǀĞƐĂŵƉůŝŶŐƉůĂŶĨŽƌůĂďŽƌĂƚŽƌLJĂŶĂůLJƐŝƐ͕ƚŚĞĨŝůĞƌĞǀŝĞǁŽƌƐŝŐŚƚĐŽŶĚŝƚŝŽŶƐĚƵƌŝŶŐ ĚƌŝůůŝŶŐŵĂLJƌĞĚƵĐĞƚŚĞĂŵŽƵŶƚŽĨƐŽŝů͕ŐƌŽƵŶĚǁĂƚĞƌŽƌƐŽŝůŐĂƐƐĂŵƉůĞƐĂŶĂůLJnjĞĚΎΎ /ŶƚĞƌƉƌĞƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂůƐĂŵƉůĞƌĞƐƵůƚƐďĂƐĞĚŽŶĞƐƚĂďůŝƐŚĞĚDW^ŽŝůZĞĨĞƌĞŶĐĞ sĂůƵĞƐ;^ZsƐͿĨŽƌƐŽŝů͕DŝŶŶĞƐŽƚĂĞƉĂƌƚŵĞŶƚŽĨ,ĞĂůƚŚ;D,Ϳ,ĞĂůƚŚZŝƐŬ>ŝŵŝƚƐ;,Z>ƐͿĨŽƌ ŐƌŽƵŶĚǁĂƚĞƌĂŶĚDW/ŶƚƌƵƐŝŽŶ^ĐƌĞĞŶŝŶŐsĂůƵĞƐ;/^sƐͿĨŽƌƐŽŝůǀĂƉŽƌƐĂŶĚƉƌŽǀŝĚĞ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ŽŽƌĚŝŶĂƚŝŽŶǁŝƚŚƚŚĞŝƚLJĂŶĚd^WĂŶĚƚŚĞDWŝĨŶĞĐĞƐƐĂƌLJ WƌĞƉĂƌĞĂĨŝŶĂů>^/ƌĞƉŽƌƚĂŶĚͬŽƌĂĞǀĞůŽƉŵĞŶƚZĞƐƉŽŶƐĞĐƚŝŽŶWůĂŶ;ZWͿƚŚĂƚƉƌŽǀŝĚĞƐ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂŶĚƐƉĞĐŝĨŝĞƐŚŽǁĐŽŶƚĂŵŝŶĂƚĞĚƐŽŝůƐŚŽƵůĚďĞŵĂŶĂŐĞĚĨŽƌŝŶĐůƵƐŝŽŶŝŶƚŚĞ ďƵŝůĚŝŶŐĚĞƐŝŐŶƉůĂŶƐĂŶĚƐƉĞĐŝĨŝĐĂƚŝŽŶƐĨŽƌƐŝƚĞĚĞǀĞůŽƉŵĞŶƚ &ƵƚƵƌĞǁŽƌŬǁŝůůĂƚƚŚŝƐƐŝƚĞǁŝůůďĞďĂƐĞĚŽŶƚŚĞĨŝŶĚŝŶŐƐŽĨƚŚĞŝŶǀĞƐƚŝŐĂƚŝŽŶĂŶĚƚLJƉĞƐŽĨ ĐŽŶƚĂŵŝŶĂƚŝŽŶĨŽƵŶĚ WƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶ>^/ DĂLJŽŝǀŝĐĞŶƚĞƌ͘ WĂŐĞͮϮ 3DFNHW3J 'D [[298,226,643,301][16][B,I,][Times New Roman]]([SHULHQFH DĐ'ŚŝĞΘĞƚƚƐĐŽŶƚŝŶƵĂůůLJƉĞƌĨŽƌŵƐůŝŵŝƚĞĚƐŝƚĞŝŶǀĞƐƚŝŐĂƚŝŽŶƐ͕ĚĂƚĂĂŶĂůLJƐŝƐĂŶĚĐŽŵŵƵŶŝĐĂƚŝŽŶǁŝƚŚ ƌĞŐƵůĂƚŽƌLJƐƚĂĨĨĨŽƌƐŝƚĞƐŽĨƐŝŵŝůĂƌƐĐŽƉĞ͘&ŽƌŽǀĞƌϲϬLJĞĂƌƐ͕DĐ'ŚŝĞΘĞƚƚƐŚĂƐƉƌŽǀĞŶƚŽŽƵƌĐůŝĞŶƚƐ ƚŚĂƚŽƵƌƐƚĂĨĨŝƐƉƌŽĨŝĐŝĞŶƚĂƚĚĂƚĂŝŶƚĞƌƉƌĞƚĂƚŝŽŶĨŽƌƐŽŝůŽƌŐƌŽƵŶĚǁĂƚĞƌŵĞĚŝĂĂŶĚǁĞĂƌĞ ŬŶŽǁůĞĚŐĞĂďůĞĂďŽƵƚŐĞŽůŽŐŝĐĨŽƌŵĂƚŝŽŶƐƚŚĂƚŵĂŬĞƚŚĞŚLJĚƌŽŐĞŽůŽŐLJƵŶŝƋƵĞŝŶƚŚĞůŽĐĂůĂƌĞĂŝŶ ĂĚĚŝƚŝŽŶƚŽŚĂǀŝŶŐĞdžƉĞƌŝĞŶĐĞŝŶĚĞĂůŝŶŐǁŝƚŚŽůĚĚƵŵƉŵĂƚĞƌŝĂůͬǁĂƐƚĞ͘tŝƚŚŽƵƌďĂĐŬŐƌŽƵŶĚĂŶĚ ƌĞŐŝŽŶĂůĞdžƉĞƌƚŝƐĞǁĞŽĨĨĞƌƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂŶĚŽƉƚŝŽŶƐĨŽƌĂĐŚŝĞǀŝŶŐƐŝƚĞĐůŽƐƵƌĞĂƐĞĨĨŝĐŝĞŶƚůLJĂŶĚ ĐŽƐƚĞĨĨĞĐƚŝǀĞůLJĂƐƉŽƐƐŝďůĞ͘ <ĞLJWĞƌƐŽŶŶĞů ǡ WƌŽũĞĐƚDĂŶĂŐĞƌ :ĞĨĨŝƐĂDŝŶŶĞƐŽƚĂŶĂƚŝǀĞǁŝƚŚϯϲLJĞĂƌƐŽĨŐĞŽůŽŐŝĐĞdžƉĞƌŝĞŶĐĞĂŶĚĨŽƌƚŚĞůĂƐƚϮϱLJĞĂƌƐŚĞŚĂƐ ƉƌĂĐƚŝĐĞĚĞdžĐůƵƐŝǀĞůLJŝŶDŝŶŶĞƐŽƚĂĂŶĚƚŚĞhƉƉĞƌDŝƐƐŝƐƐŝƉƉŝZŝǀĞƌsĂůůĞLJ͘,ĞŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌ ĚŝƌĞĐƚŝŶŐĂŶĚĐŽŶĚƵĐƚŝŶŐŐĞŽůŽŐŝĐ͕ŚLJĚƌŽŐĞŽůŽŐŝĐĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůŝŶǀĞƐƚŝŐĂƚŝŽŶƐĨŽƌŵŝƚŝŐĂƚŝŽŶ ŽĨĐŽŶƚĂŵŝŶĂƚĞĚƐŽŝůĂŶĚŐƌŽƵŶĚǁĂƚĞƌ͘ Ǥ ŶǀŝƌŽŶŵĞŶƚĂů^ĐŝĞŶƚŝƐƚ EŝĐŽůĞŚĂƐďĞĞŶƉƌŽǀŝĚŝŶŐƚĞĐŚŶŝĐĂůĞdžƉĞƌƚŝƐĞĨŽƌĞŶǀŝƌŽŶŵĞŶƚĂůŝŶǀĞƐƚŝŐĂƚŝŽŶƐĐŽŶĐĞƌŶŝŶŐƐŽŝůĂŶĚ ŐƌŽƵŶĚǁĂƚĞƌĐŽŶƚĂŵŝŶĂƚŝŽŶŝŶ^ŽƵƚŚĞĂƐƚDŝŶŶĞƐŽƚĂĨŽƌϲLJĞĂƌƐ͘tŚŝůĞƐŚĞŝƐƉƌŝŵĂƌŝůLJĨŽĐƵƐĞĚŽŶ ĂŐƌŝĐƵůƚƵƌĂůĐŚĞŵŝĐĂůĐŽŶƚĂŵŝŶĂƚŝŽŶŝŶǀĞƐƚŝŐĂƚŝŽŶƐƐŚĞŚĂƐĂůƐŽƉĞƌĨŽƌŵĞĚŝŶǀĞƐƚŝŐĂƚŝŽŶƐĨŽƌĚƌLJ ĐůĞĂŶŝŶŐŽƉĞƌĂƚŝŽŶƐ͕ŐĂƐƐƚĂƚŝŽŶƐĂŶĚůĞĂŬŝŶŐƐƚŽƌĂŐĞƚĂŶŬƐ;^dͬh^dͿ͘ [[300,1662,317,1737][16][B,I,][Times New Roman]] [[299,1739,692,1814][16][B,I,][Times New Roman]]3URSRVHG)HH tĞƉƌŽƉŽƐĞƚŽĐŽŵƉůĞƚĞƚŚĞ>^/ĂŶĚƌĞƉŽƌƚŝŶŐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚdĂďůĞηϭ͘ŶLJĚĞǀŝĂƚŝŽŶƐŽƌ ŵŽĚŝĨŝĐĂƚŝŽŶƐƉĞƌƚŚĞƌĞƋƵĞƐƚŽĨƌĞŐƵůĂƚŽƌLJĂŐĞŶĐŝĞƐǁŝůůďĞƐƵďũĞĐƚƚŽĂĚĚŝƚŝŽŶĂůĐŚĂƌŐĞƐ͘ dĂƐŬĞƐĐƌŝƉƚŝŽŶ&ĞĞ ϭWƌŽũĞĐƚDĂŶĂŐĞŵĞŶƚΘŐĞŶĐLJŽŽƌĚŝŶĂƚŝŽŶΨϭϮϬϬ͘ϬϬ Z'ŽǀĞƌŶŵĞŶƚŽĐƵŵĞŶƚƐĐƋƵŝƐŝƚŝŽŶ Ϯ;ĂĐƚƵĂůĨĞĞƐǁŝůůďĞŝŶǀŽŝĐĞĚͿΨϯϬϬ͘ϬϬ 'ĞŽƉƌŽďĞƌŝůůŝŶŐ ϯ;ĂĐƚƵĂůĨĞĞƐǁŝůůďĞŝŶǀŽŝĐĞĚͿΨϱϭϬϬ͘ϬϬ ϰ^Žŝů^ĂŵƉůŝŶŐ͕ŶĂůLJƐŝƐĂŶĚĂƚĂ/ŶƚĞƌƉƌĞƚĂƚŝŽŶΨϯϲϬϬ͘ϬϬ >Ăď&ĞĞƐ ϱ;ĂĐƚƵĂůĨĞĞƐǁŝůůďĞŝŶǀŽŝĐĞĚͿΨϴϱϬϬ͘ϬϬ &ŝŶĂů>^/ZĞƉŽƌƚͬĞǀĞůŽƉŵĞŶƚZĞƐƉŽŶƐĞĐƚŝŽŶWůĂŶ ϲ;ZWͿΨϲϬϬϬ͘ϬϬ dŽƚĂůΨϮϰ͕ϳϬϬ͘ϬϬ WƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶ>^/ DĂLJŽŝǀŝĐĞŶƚĞƌ͘ WĂŐĞͮϯ 3DFNHW3J 'D KƵƌĨĞĞƐǁŝůůďĞĐŚĂƌŐĞĚŽŶĂŶŚŽƵƌůLJŶŽƚƚŽĞdžĐĞĞĚĂŵŽƵŶƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƚƚĂĐŚĞĚĨĞĞ ƐĐŚĞĚƵůĞ͘WůĞĂƐĞŶŽƚĞĂĐƚƵĂůůĂďĨĞĞƐǁŝůůďĞĐŚĂƌŐĞĚ͘ůƐŽĂƚƚĂĐŚĞĚĂƌĞƚŚĞŐĞŶĞƌĂůĐŽŶĚŝƚŝŽŶƐŽĨƚŚĞ ĂŐƌĞĞŵĞŶƚƚŚĂƚǁŽƵůĚĂƉƉůLJƚŽƚŚŝƐƉƌŽũĞĐƚ͘ [[298,469,585,544][16][B,I,][Times New Roman]]6FKHGXOH DĐ'ŚŝĞΘĞƚƚƐĂŶƚŝĐŝƉĂƚĞƐƚŚĞZĚŽĐƵŵĞŶƚƐĐĂŶďĞŽƌĚĞƌĞĚŝŵŵĞĚŝĂƚĞůLJƵƉŽŶŽďƚĂŝŶŝŶŐĂƐŝŐŶĞĚ ƉƌŽƉŽƐĂůĂŶĚƚŚĞĨŝůĞƌĞǀŝĞǁĐĂŶďĞĐŽŵƉůĞƚĞĚǁŝƚŚŝŶϭ Ͳ ϯďƵƐŝŶĞƐƐĚĂLJƐ͘/ŶŽƌĚĞƌƚŽĞdžƉĞĚŝƚĞƚŚĞ ĚƌŝůůŝŶŐƐĞƌǀŝĐĞƐǁĞǁŝůůĐŽŶƚƌĂĐƚǁŝƚŚDĂƚƌŝdžŶǀŝƌŽŶŵĞŶƚĂů^ĞƌǀŝĐĞƐĂŶĚƚŚĞƐĞƐĞƌǀŝĐĞƐĐĂŶďĞ ƐĐŚĞĚƵůĞĚǁŝƚŚŝŶϭϬďƵƐŝŶĞƐƐĚĂLJƐĨƌŽŵƚŚĞƚŝŵĞƚŚĞƉƌŽƉŽƐĂůŝƐƐŝŐŶĞĚ;ĞĂƌůŝĞƐƚĚƌŝůůŝŶŐĚĂƚĞŝƐ ŶĚƐƚ ĂŶƚŝĐŝƉĂƚĞĚƚŽďĞĚƵƌŝŶŐƚŚĞǁĞĞŬŽĨ^ĞƉƚĞŵďĞƌϮϮŽƌKĐƚŽďĞƌϭͿ͘tĞĂŶƚŝĐŝƉĂƚĞĚƌŝůůŝŶŐǁŝůůďĞ ĐŽŵƉůĞƚĞĚǁŝƚŚŝŶϭ Ͳ ϮĚĂLJƐĂŶĚůĂďŽƌĂƚŽƌLJƌĞƐƵůƚƐǁŝůůĨŽůůŽǁϭϬ Ͳ ϭϱďƵƐŝŶĞƐƐĚĂLJƐƚŚĞƌĞĂĨƚĞƌǁŝƚŚĂ ĨŝŶĂůƌĞƉŽƌƚƉƌĞƉĂƌĞĚďLJůĂƚĞKĐƚŽďĞƌ͘ Wdz͗ ŽŶŶĂƌĞǁƐ͕džĞĐƵƚŝǀĞŝƌĞĐƚŽƌ DĂLJŽŝǀŝĐĞŶƚĞƌ >ŝŵŝƚĞĚ^ŝƚĞ/ŶǀĞƐƚŝŐĂƚŝŽŶĨŽƌƚŚĞWƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶ EĂŵĞ dŝƚůĞ ĂƚĞͺͺͺͺͺͺͺ WƌŽƉŽƐĞĚ<ŝƚĐŚĞŶĚĚŝƚŝŽŶ>^/ DĂLJŽŝǀŝĐĞŶƚĞƌ͘ WĂŐĞͮϰ 3DFNHW3J 'D 3ULQFLSDO 'D :6% $662&,$7(6,1& (;+,%,7$ *(1(5$/&2175$&73529,6,216 $57,&/(±*(1(5$/$57,&/(±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³$JUHHPHQW´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±&216758&7,21 FDQFHOOHGE\DGXO\H[HFXWHGZULWWHQLQVWUXPHQW 2%6(59$7,21 ,IUHTXHVWHGE\&OLHQW(QJLQHHUVKDOOYLVLWWKHSURMHFW $57,&/(±67$1'$5'2)&$5( GXULQJFRQVWUXFWLRQWREHFRPHIDPLOLDUZLWKWKH 7KHVWDQGDUGRIFDUHIRUDOOSURIHVVLRQDOHQJLQHHULQJ SURJUHVVDQGTXDOLW\RIWKHFRQWUDFWRUV¶ZRUNDQGWR DQGUHODWHGVHUYLFHVSHUIRUPHGRUIXUQLVKHGE\ GHWHUPLQHLIWKHZRUNLVSURFHHGLQJLQJHQHUDOLQ (QJLQHHUXQGHUWKLV$JUHHPHQWZLOOEHWKHFDUHDQG DFFRUGDQFHZLWKSODQVVSHFLILFDWLRQVRURWKHU VNLOORUGLQDULO\XVHGE\PHPEHUVRI(QJLQHHU¶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±$'',7,21$/6(59,&(6RUDQ\RWKHUHQWLW\IXUQLVKLQJPDWHULDOVRUSHUIRUPLQJ ,IWKH(QJLQHHUGHWHUPLQHVWKDWDQ\VHUYLFHVLWKDVDQ\ZRUNRQWKHSURMHFW EHHQGLUHFWHGRUUHTXHVWHGWRSHUIRUPDUHEH\RQGWKH VFRSHDVVHWIRUWKLQWKH$JUHHPHQWRUWKDWGXHWR&OLHQWDFNQRZOHGJHV(QJLQHHUZLOOQRWGLUHFW FKDQJHGFRQGLWLRQVRUFKDQJHVLQWKHPHWKRGRUVXSHUYLVHRUFRQWUROWKHZRUNRIFRQWUDFWRUVRUWKHLU PDQQHURIDGPLQLVWUDWLRQRIWKH3URMHFWWKHVXEFRQWUDFWRUVQRUVKDOO(QJLQHHUKDYHDXWKRULW\ (QJLQHHU¶VHIIRUWUHTXLUHGWRSHUIRUPLWVVHUYLFHVRYHURUUHVSRQVLELOLW\IRUWKHFRQWUDFWRUVPHDQV XQGHUWKLV$JUHHPHQWH[FHHGVWKHHVWLPDWHZKLFKPHWKRGVRUSURFHGXUHVRIFRQVWUXFWLRQ(QJLQHHU¶V IRUPHGWKHEDVLVIRUWKH(QJLQHHU¶VFRPSHQVDWLRQVHUYLFHVGRQRWLQFOXGHUHYLHZRUHYDOXDWLRQRIWKH (QJLQHHUVKDOOSURPSWO\QRWLI\WKH&OLHQWRIWKDWIDFW&OLHQW¶VFRQWUDFWRU¶VRUVXEFRQWUDFWRU¶VVDIHW\ 8SRQQRWLILFDWLRQ(QJLQHHUVKDOOEHHQWLWOHGWRPHDVXUHVRUMREVLWHVDIHW\ DGGLWLRQDOFRPSHQVDWLRQIRUVDPHDQGDQH[WHQVLRQ RIWLPHIRUFRPSOHWLRQRIZRUNDEVHQWZULWWHQ REMHFWLRQE\&OLHQW ([KLELW$±*HQHUDO&RQWUDFW3URYLVLRQV3DJHRI 3DFNHW3J )?:3:,1?&/,(17?6WDQGDUG&RQWUDFW?([K$GRF 'D )RU&OLHQWREVHUYHGSURMHFWVWKH(QJLQHHUVKDOOEHRIWKHZRUNWKH(QJLQHHUPD\PDNHDYDLODEOHWRWKH HQWLWOHGWRUHO\XSRQDQGDFFHSWUHSUHVHQWDWLRQVRIWKH&OLHQWWKH,QVWUXPHQWVRI6HUYLFHXSRQ L SD\PHQWRI &OLHQW¶VREVHUYHU,IWKH&OLHQWGHVLUHVPRUHDPRXQWVGXHDQGRZLQJIRUZRUNSHUIRUPHGDQG H[WHQVLYHSURMHFWREVHUYDWLRQRUIXOOWLPHSURMHFWH[SHQVHVLQFXUUHGWRWKHGDWHDQGWLPHRIWHUPLQDWLRQ UHSUHVHQWDWLRQWKH&OLHQWVKDOOUHTXHVWVXFKVHUYLFHVDQG LL IXOILOOPHQWRIWKH&OLHQW¶VREOLJDWLRQVXQGHU EHSURYLGHGE\WKH(QJLQHHUDVDQ$GGLWLRQDO6HUYLFHWKLV$JUHHPHQW$Q\XVHRUUHXVHRIVXFK (QJLQHHUDQG&OLHQWVKDOOWKHQHQWHULQWRD,QVWUXPHQWVRI6HUYLFHE\WKH&OLHQWRURWKHUVZLWKRXW 6XSSOHPHQWDO$JUHHPHQWGHWDLOLQJWKHWHUPVDQGZULWWHQFRQVHQWYHULILFDWLRQRUDGDSWDWLRQE\WKH FRQGLWLRQVRIWKHUHTXHVWHGSURMHFWREVHUYDWLRQ(QJLQHHUH[FHSWIRUWKHVSHFLILFSXUSRVHLQWHQGHGZLOO EHDWWKH&OLHQW¶VULVNDQGIXOOOHJDOUHVSRQVLELOLW\ $57,&/(±23,1,2162)352%$%/(&267 2SLQLRQVLIDQ\RISUREDEOHFRVWFRQVWUXFWLRQFRVW7KH&OLHQWZLOOWRWKHIXOOHVWH[WHQWSHUPLWWHGE\ODZ ILQDQFLDOHYDOXDWLRQVIHDVLELOLW\VWXGLHVHFRQRPLFLQGHPQLI\DQGKROGWKH(QJLQHHUKDUPOHVVIURPDQ\ FODLPOLDELOLW\RUFRVW LQFOXGLQJUHDVRQDEOH DQDO\VHVRIDOWHUQDWHVROXWLRQVDQGXWLOLWDULDQ DWWRUQH\V¶IHHVDQGGHIHQVHFRVWV DULVLQJRU FRQVLGHUDWLRQVRIRSHUDWLRQVDQGPDLQWHQDQFHFRVWV SURYLGHGIRUDUHPDGHRUWREHPDGHRQWKHEDVLVRIDOOHJHGO\DULVLQJRXWRIDQ\XQDXWKRUL]HGUHXVHRU WKH(QJLQHHU¶VH[SHULHQFHDQGTXDOLILFDWLRQVDQGPRGLILFDWLRQRIWKHVH,QVWUXPHQWVRI6HUYLFHE\WKH &OLHQWRUDQ\SHUVRQRUHQWLW\WKDWDFTXLUHVRUREWDLQV UHSUHVHQWWKH(QJLQHHU¶VEHVWMXGJPHQWDVDQ WKHUHSRUWVSODQVDQGVSHFLILFDWLRQVIURPRUWKURXJK H[SHULHQFHGDQGTXDOLILHGSURIHVVLRQDOGHVLJQILUP 7KHSDUWLHVDFNQRZOHGJHKRZHYHUWKDWWKH(QJLQHHUWKH&OLHQWZLWKRXWWKHZULWWHQDXWKRUL]DWLRQRIWKH GRHVQRWKDYHFRQWURORYHUWKHFRVWRIODERUPDWHULDO(QJLQHHU8QGHUQRFLUFXPVWDQFHVVKDOOWUDQVIHURI ,QVWUXPHQWVRI6HUYLFHEHGHHPHGDVDOHE\(QJLQHHU HTXLSPHQWRUVHUYLFHVIXUQLVKHGE\RWKHUVRURYHU DQG(QJLQHHUPDNHVQRZDUUDQWLHVHLWKHUH[SUHVVHG PDUNHWFRQGLWLRQVRUFRQWUDFWRU¶VPHWKRGVRI GHWHUPLQLQJWKHLUSULFHVDQGDQ\HYDOXDWLRQRIDQ\RULPSOLHGRIPHUFKDQWDELOLW\DQGILWQHVVIRUDQ\ IDFLOLW\WREHFRQVWUXFWHGRUDFTXLUHGRUZRUNRISDUWLFXODUSXUSRVH(QJLQHHUVKDOOEHHQWLWOHGWR FRPSHQVDWLRQIRUDQ\FRQVHQWYHULILFDWLRQRU QHFHVVLW\PXVWEHVSHFXODWLYHXQWLOFRPSOHWLRQRI DGDSWDWLRQRIWKH,QVWUXPHQWVRI6HUYLFHIRU FRQVWUXFWLRQRUDFTXLVLWLRQ$FFRUGLQJO\WKH (QJLQHHUGRHVQRWJXDUDQWHHWKDWSURSRVDOVELGVRUH[WHQVLRQVRIWKH3URMHFWRUDQ\RWKHUSURMHFW DFWXDOFRVWVZLOOQRWYDU\IURPRSLQLRQVHYDOXDWLRQV $57,&/(±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¶V,QVWUXPHQWVRI6HUYLFHDQG EHHQWLWOHGWRUHFRYHUDOOUHDVRQDEOHFRVWVDQG (QJLQHHUUHWDLQVDOORZQHUVKLSLQWHUHVWVLQ GLVEXUVHPHQWVLQFOXGLQJUHDVRQDEOHDWWRUQH\VIHHV ,QVWUXPHQWVRI6HUYLFHLQFOXGLQJFRS\ULJKWV7KH LQFXUUHGLQFRQQHFWLRQZLWKFROOHFWLQJDPRXQWVRZHG ,QVWUXPHQWVRI6HUYLFHDUHQRWLQWHQGHGRU E\&OLHQW,QDGGLWLRQ(QJLQHHUPD\DIWHUJLYLQJ UHSUHVHQWHGWREHVXLWDEOHIRUUHXVHE\WKH&OLHQWRU VHYHQGD\V¶ZULWWHQQRWLFHWR&OLHQWVXVSHQGVHUYLFHV RWKHUVRQH[WHQVLRQVRIWKH3URMHFWRURQDQ\RWKHU XQGHUWKLV$JUHHPHQWXQWLOLWUHFHLYHVIXOOSD\PHQW SURMHFW&RSLHVRIGRFXPHQWVWKDWPD\EHUHOLHGXSRQ IRUDOODPRXQWVWKHQGXHIRUVHUYLFHVH[SHQVHVDQG E\&OLHQWDUHOLPLWHGWRWKHSULQWHGFRSLHV DOVR FKDUJHV NQRZQDVKDUGFRSLHV WKDWDUHVLJQHGRUVHDOHGE\ (QJLQHHU)LOHVLQHOHFWURQLFIRUPDWIXUQLVKHGWR &OLHQWDUHRQO\IRUFRQYHQLHQFHRI&OLHQW$Q\ FRQFOXVLRQRULQIRUPDWLRQREWDLQHGRUGHULYHGIURP VXFKHOHFWURQLFILOHVZLOOEHDWWKHXVHU¶VVROHULVN,I WKHUHLVDGLVFUHSDQF\EHWZHHQWKHHOHFWURQLFILOHVDQG WKHKDUGFRSLHVWKHKDUGFRSLHVJRYHUQ(QJLQHHU PDNHVQRUHSUHVHQWDWLRQVDVWRORQJWHUP FRPSDWLELOLW\XVDELOLW\RUUHDGDELOLW\RIHOHFWURQLF ILOHV ,IUHTXHVWHGDWWKHWLPHRIFRPSOHWLRQRUWHUPLQDWLRQ ([KLELW$±*HQHUDO&RQWUDFW3URYLVLRQV3DJHRI 3DFNHW3J )?:3:,1?&/,(17?6WDQGDUG&RQWUDFW?([K$GRF 'D $57,&/(±+$=$5'2860$7(5,$/6$57,&/(±,1'(01,),&$7,21 1RWZLWKVWDQGLQJWKH6FRSHRI6HUYLFHVWREHSURYLGHG7KH(QJLQHHUDJUHHVWRWKHIXOOHVWH[WHQWSHUPLWWHG SXUVXDQWWRWKLV$JUHHPHQWLWLVXQGHUVWRRGDQGE\ODZWRLQGHPQLI\DQGKROGWKH&OLHQWKDUPOHVV DJUHHGWKDW(QJLQHHULVQRWDXVHUKDQGOHUJHQHUDWRUIURPDQ\GDPDJHOLDELOLW\RUFRVW LQFOXGLQJ RSHUDWRUWUHDWHUVWRUHUWUDQVSRUWHURUGLVSRVHURIUHDVRQDEOHDWWRUQH\V¶IHHVDQGFRVWVRIGHIHQVH WRWKH KD]DUGRXVRUWR[LFVXEVWDQFHVSROOXWDQWVRUH[WHQWFDXVHGE\WKH(QJLQHHU¶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¶IHHVDQGFRVWVRIGHIHQVH WRWKH FODLPVORVVHVGDPDJHVOLDELOLW\DQGFRVWVLQFOXGLQJH[WHQWFDXVHGE\WKH&OLHQW¶VQHJOLJHQWDFWVHUURUVRU EXWQRWOLPLWHGWRFRVWVRIGHIHQVHDULVLQJRXWRIRULQRPLVVLRQVDQGWKRVHRIKLVRUKHUFRQWUDFWRUV DQ\ZD\FRQQHFWHGZLWKWKHSUHVHQFHGLVFKDUJHVXEFRQWUDFWRUVRUFRQVXOWDQWVRUDQ\RQHIRUZKRPWKH UHOHDVHRUHVFDSHRIKD]DUGRXVRUWR[LFVXEVWDQFHV&OLHQWLVOHJDOO\OLDEOHDQGDULVLQJIURPWKHSURMHFW SROOXWDQWVRUFRQWDPLQDQWVRIDQ\NLQGH[FHSWWKDWWKDWLVWKHVXEMHFWRIWKLV$JUHHPHQW WKLVFODXVHVKDOOQRWDSSO\WRVXFKOLDELOLW\DVPD\ DULVHRXWRI(QJLQHHU¶VVROHQHJOLJHQFHLQWKH$57,&/(±$66,*10(17 SHUIRUPDQFHRIVHUYLFHVXQGHUWKLV$JUHHPHQWDULVLQJ1HLWKHU3DUW\WRWKLV$JUHHPHQWVKDOODVVLJQLWV IURPRUUHODWLQJWRKD]DUGRXVRUWR[LFVXEVWDQFHV LQWHUHVWLQWKLVDJUHHPHQWDQ\SURFHHGVGXHXQGHUWKH SROOXWDQWVRUFRQWDPLQDQWVVSHFLILFDOO\LGHQWLILHGE\ $JUHHPHQWQRUDQ\FODLPVWKDWPD\DULVHIURP WKH&OLHQWDQGLQFOXGHGZLWKLQ(QJLQHHU¶VVHUYLFHVWRVHUYLFHVRUSD\PHQWVGXHXQGHUWKH$JUHHPHQW EHSURYLGHGXQGHUWKLV$JUHHPHQWZLWKRXWWKHZULWWHQFRQVHQWRIWKHRWKHU3DUW\$Q\ DVVLJQPHQWLQYLRODWLRQRIWKLVSURYLVLRQVKDOOEHQXOO $57,&/(±,1685$1&(DQGYRLG (QJLQHHUKDVSURFXUHGJHQHUDODQGSURIHVVLRQDO $57,&/(±&21752//,1*/$: OLDELOLW\LQVXUDQFH2QUHTXHVW(QJLQHHUZLOOIXUQLVK FOLHQWZLWKDFHUWLILFDWHRILQVXUDQFHGHWDLOLQJWKH7KLV$JUHHPHQWLVWREHJRYHUQHGE\WKHODZVRIWKH SUHFLVHQDWXUHDQGW\SHRILQVXUDQFHDORQJZLWK6WDWHRI0LQQHVRWD DSSOLFDEOHSROLF\OLPLWV $57,&/(±&21)/,&75(62/87,21 $57,&/(±7(50,1$7,21 ,QDQHIIRUWWRUHVROYHDQ\FRQIOLFWVWKDWDULVHGXULQJ 7KLV$JUHHPHQWPD\EHWHUPLQDWHGE\HLWKHUSDUW\WKHGHVLJQRUFRQVWUXFWLRQRIWKHSURMHFWRUIROORZLQJ XSRQWKLUW\GD\V¶ZULWWHQQRWLFHZLWKRXWFDXVH,QWKHWKHFRPSOHWLRQRIWKHSURMHFWWKH&OLHQWDQG(QJLQHHU HYHQWRIWHUPLQDWLRQFRSLHVRISODQVUHSRUWVDJUHHWKDWDOOGLVSXWHVEHWZHHQWKHPDULVLQJRXWRIRU VSHFLILFDWLRQVHOHFWURQLFGUDZLQJGDWDILOHV &$'' UHODWLQJWRWKLV$JUHHPHQWVKDOOEHVXEPLWWHGWR ILHOGGDWDQRWHVDQGRWKHUGRFXPHQWVZKHWKHUQRQELQGLQJPHGLDWLRQDVDSUHFRQGLWLRQWRDQ\IRUPDO ZULWWHQSULQWHGRUUHFRUGHGRQDQ\PHGLXPOHJDOSURFHHGLQJV ZKDWVRHYHUILQLVKHGRUXQILQLVKHGSUHSDUHGE\WKH (QJLQHHUSXUVXDQWWRWKLV$JUHHPHQWDQGSHUWDLQLQJ$57,&/(±&21),'(17,$/,7< WRWKHZRUNRUWRWKH3URMHFW KHUHLQDIWHU7KH(QJLQHHUDJUHHVWRNHHSFRQILGHQWLDODQGQRWWR ³,QVWUXPHQWVRI6HUYLFH´ VKDOOEHPDGHDYDLODEOHWR GLVFORVHWRDQ\SHUVRQRUHQWLW\RWKHUWKDQWKH WKH&OLHQWSXUVXDQWWR$UWLFOHRIWKLV (QJLQHHU¶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±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¶VREOLJDWLRQVDVZHOODVWKH&LW\¶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±7LWXV&DUU(YDQV-U &DURO-(YDQV± -DPLH0LOOHU &LW\3URMHFW- ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO3XEOLF:RUNV %XVLQHVV ,7(0'(6&5,37,2135(3$5('%< 2ZQHU&RQWUDFW3XEOLF,PSURYHPHQWVWR6HUYH1RUWKHUQ+HLJKWV1RUWK +HDWKHU3HWHUVRQ )RXUWK6XEGLYLVLRQ- 6WDIIZRXOGRIIHUWKHIROORZLQJ2ZQHU&RQWUDFWSURMHFWIRUFRQVLGHUDWLRQE\WKH&RXQFLO $UQROG%RPJDDUV%OLW]RQ//&GED%OLW]&RQVWUXFWLRQ*&XEHG,QF DV2ZQHU DV&RQWUDFWRU DQG DV3URMHFW (QJLQHHU DUHUHTXHVWLQJD&LW\2ZQHU&RQWUDFW-FRQVLVWLQJRI³3XEOLF,PSURYHPHQWVWR6HUYH1RUWKHUQKHLJKWV1RUWK )RXUWK6XEGLYLVLRQ´ &281&,/$&7,215(48(67(' $GRSWD5HVROXWLRQDXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHWKH&LW\2ZQHU&RQWUDFWIRU-IRU ³3XEOLF,PSURYHPHQWVWR6HUYH1RUWKHUQ+HLJKWV1RUWK)RXUWK6XEGLYLVLRQ´FRQGLWLRQHGRQIXOOH[HFXWLRQRIWKH FRQWUDFWVE\WKH2ZQHU&RQWUDFWRUDQG(QJLQHHUDVZHOODV&RQWUDFWRUVXSSO\LQJDSSURYHG%RQGDQG ,QVXUDQFH'RFXPHQWDWLRQSULRUWRFRPPHQFHPHQWRISXEOLFLPSURYHPHQWVZRUNLQFOXGHGLQWKH&RQWUDFW 3DFNHW3J 'D ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐEŽƌƚŚĞƌŶ,ĞŝŐŚƚƐEŽƌƚŚ&ŽƵƌƚŚ^ƵďĚŝǀŝƐŝŽŶͲ KŽŶƚƌĂĐƚ:ϱϯϵϰ ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨEŽƌƚŚĞƌŶ,ĞŝŐŚƚƐEŽƌƚŚ&ŽƵƌƚŚ^ƵďĚŝǀŝƐŝŽŶĨŽƌͲ K ŽŶƚƌĂĐƚ:ϱϯϵϰ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO3XEOLF:RUNV %XVLQHVV ,7(0'(6&5,37,2135(3$5('%< 5HYRFDEOH3HUPLW±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x 3UHSDULQJDQ(QYLURQPHQWDO$VVHVVPHQW:RUNVKHHW ($: WRPHHWWKH0LQQHVRWD(QYLURQPHQWDO3ROLF\$FW UHTXLUHPHQWV x 5HFHLYLQJFRPPHQWVIURPLQWHUHVWHGSDUWLHVGXULQJWKHGD\SXEOLFFRPPHQWSHULRGDQG x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±5HVSRQVLEOH*RYHUQPHQWDO8QLW ,$'0,1,675$7,9(%$&.*5281' $QHQYLURQPHQWDOUHYLHZSURFHVVZDVFRPSOHWHGIRUWKH6RXWK%UDQFK&DVFDGH&UHHN 6WUHDP5HVWRUDWLRQ3URMHFW7KLVSURMHFWPHHWVWKHPDQGDWRU\(QYLURQPHQWDO$VVHVVPHQW :RUNVKHHW ($: WKUHVKROGLQ0LQQHVRWD5XOHVXES6WUHDP'LYHUVLRQ 7KH&LW\RI5RFKHVWHULVWKH5HVSRQVLEOH*RYHUQPHQWDO8QLW 5*8 IRUWKH($:ZKLFK ZHUHSUHSDUHGE\WKHSURMHFWSDUWQHUVDFFRUGLQJWRVWDWHUXOHV1RWLFHRIDYDLODELOLW\RIWKH ($:ZDVSXEOLVKHGLQWKH(4%[[1032,1057,1083,1114][12][,I,][Times New Roman]]0 [[1078,1057,1199,1114][12][,I,][Times New Roman]]RQLWRU [[1200,1057,1212,1114][12][,,][Times New Roman]] [[1213,1057,1275,1114][12][,,][Times New Roman]]RQ [[1275,1057,1808,1114][12][,,][Times New Roman]]6HSWHPEHUDQGWKH [[1809,1057,1821,1114][12][,,][Times New Roman]] [[1822,1057,1872,1114] [12][,,][Times New Roman]] [[1872,1057,1888,1114][12][,,][Times New Roman]] [[1889,1057,1972,1114][12][,,][Times New Roman]]GD\ [[1973,1057,2109,1114][12][,,][Times New Roman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¶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x 7KH($:LVDFFXUDWHDQGFRPSOHWHDQGQRSRWHQWLDOVWDWHWUDQVSRUWDWLRQV\VWHP LPSDFWVZHUHLGHQWLILHGDQ(,6LVQRWQHHGHG[[1382,1070,1394,1127][12][,I,][Times New Roman]] [[448,1128,654,1185][12][,I,][Times New Roman]]5HVSRQVH [[655,1128,679,1185][12][,I,][Times New Roman]] [[680,1128,1026,1185][12][,I,][Times New Roman]]&RPPHQWVQRWHG [[1028,1128,1040,1185][12][, I,][Times New Roman]] 0LQQHVRWD3ROOXWLRQ&RQWURO$JHQF\ x 03&$VWDIIKDYHEHHQLQYROYHGZLWKWKHSURMHFWSDUWQHUVWKURXJKRXWWKHSURFHVVDQG KDYHQRFRPPHQWVDWWKLVWLPH[[1073,1362,1085,1419][12][,I,][Times New Roman]] [[448,1419,638,1476][12][,I,][Times New Roman]]5HVSRQVH [[639,1419,655,1476][12][,I,][Times New Roman]] [[655,1419,667,1476][12][,I,][Times New Roman]] [[668,1419,916,1476][12][,I,][Times New Roman]]&RPPHQWVQ [[917,1419,1015,1476][12][,I,][Times New Roman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±:DWHUPDLQ +\GUDQW V WR6HUYH3DDSH&RPSDQLHV +HDWKHU3HWHUVRQ ,QF- 'D ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨWĂĂƉĞŽŵƉĂŶŝĞƐ/ŶĐ͘;>Žƚϯ͕ůŽĐŬϭŝƌĐůĞƌŝǀĞŽƌƉŽƌĂƚĞWĂƌŬ dŚŝƌĚͿ:ϱϯϵϳ ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨWĂĂƉĞŽŵƉĂŶŝĞƐ/ŶĐ͘;>Žƚϯ͕ůŽĐŬϭŝƌĐůĞƌŝǀĞ ŽƌƉŽƌĂƚĞWĂƌŬdŚŝƌĚͿ:ϱϯϵϳ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO3XEOLF:RUNV %XVLQHVV ,7(0'(6&5,37,2135(3$5('%< (VWDEOLVKD123$5.,1*=RQHRQWKHQRUWKVLGHRI+DGOH\&UHHN'U1( .HLWK5XRQD WK $³1R3DUNLQJ´]RQHLVSURSRVHGRQWKHQRUWKVLGHRI+DGOH\&UHHN'ULYH1(IURP6WUHHW1(WRWKHZHVWHQGRIWKH VWUHHW7KLVVXEGLYLVLRQZDVEXLOWZLWKDIRRWZLGHURDGZD\ZKLFKZRXOGDOORZSDUNLQJRQRQHVLGHRIWKHVWUHHWDQG VWLOOFRPSO\ZLWK&LW\=RQLQJ5HJXODWLRQV :KHQWKLVVXEGLYLVLRQZDVILUVWUHYLHZHGIRUVLJQDJHWKH3XEOLF:RUNV'HSWSURSRVHGWKDWSDUNLQJRQO\EHDOORZHGRQ RQHVLGHRIWKHVWUHHW1RZWKDWPRUHRIWKHORWVLQWKLVVXEGLYLVLRQDUHGHYHORSHGWKHORFDOKRPHRZQHUVDVVRFLDWLRQKDV UHTXHVWHGWKDWD³1R3DUNLQJ´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ĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐůŽĐĂƚŝŽŶŽĨEŽƌĂŶĚĞdžWĂƌŬŝŶŐdžƉĂŶƐŝŽŶ͘ ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨEŽƌĂŶĚĞdž͘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±6RXWKò/RW -DPLH0LOOHU 9DQGDO¶V)LUVW6XEGLYLVLRQ 7UDFH\/)HUJXVRQDQG1DQF\.0XUU\DUHWKH2ZQHUV 2ZQHUV RISURSHUW\GHVFULEHGWKH6RXWKòRI/RW9DQGDO¶V)ULVW 6XEGLYLVLRQ2OPVWHG&RXQW\0LQQHVRWD3,153DUHD 6WDIIUHFRPPHQGVWKH&RXQFLODSSURYHWKH6HSWLF6\VWHP8VH8WLOLW\&RQQHFWLRQ$JUHHPHQW7KH2ZQHUVKDYHH[HFXWHGWKH $JUHHPHQW &281&,/$&7,215(48(67(' $GRSWD5HVROXWLRQDXWKRUL]LQJWKH0D\RUDQG&LW\&OHUNWRH[HFXWHD6HSWLF6\VWHP8VH8WLOLW\&RQQHFWLRQ$JUHHPHQWZLWK7UDFH\ /)HUJXVRQDQG1DQF\.0XUU\IRUWK H6RXWKòRI/RW9DQGDO¶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±,QJUHVV(JUHVV ,PSURYHPHQWVRQ&LW\ -DPLH0LOOHU 3URSHUW\ZHVWRIWK$Y1: WK $YHQXH1://& 2ZQHU LVWKH2ZQHURIWKHSURSHUW\GHVFULEHGDVWKH6RXWKIHHWRI/RWDQGDOORI/RWVDQG WK %ORFN&RRN6XEGLYLVLRQ5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD$YHQXH1:2ZQHUZLOOEHRSHUDWLQJDQDXWRUHSDLU EXVLQHVVRQLWV3URSHUW\DQGKDVUHTXHVWHGWRXVH&LW\RZQHGSURSHUW\ORFDWHGZHVWRI2ZQHU¶VSURSHUW\IRUWKHIROORZLQJ x 7RNHHSDQH[LVWLQJIHQFHDQGORFNHGJDWHWKDWLVORFDWHGRQWKH&LW\RZQHGSURSHUW\DOORZHGE\DQH[LVWLQJUHYRFDEOHSHUPLW x ,QJUHVVDQGHJUHVVWRZHVWVLGHRI2ZQHU¶VSURSHUW\ x 7HPSRUDU\SDUNLQJRIYHKLFOHVIRUWKHDXWRUHSDLUEXVLQHVV x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±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±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dŚĞĨŽůůŽǁŝŶŐWƌŽũĞĐƚŝƐƉƌŽƉŽƐĞĚĨŽƌĐŽŶƐƚƌƵĐƚŝŽŶŝŶϮϬϭϱ͘ WƌŽũĞĐƚEŽ͘^͘͘W͘ϭϱϵͲϬϮϬͲϬϭϵ͕:ϲϬϬϵ ƚŚ ͞ϭϲ^ƚƌĞĞƚ^t/ŶƚĞƌƐĞĐƚŝŽŶ/ŵƉƌŽǀĞŵĞŶƚƐ͟ dŚĞĞƐƚŝŵĂƚĞĚĐŽŶƐƚƌƵĐƚŝŽŶĐŽƐƚƐĂŶĚĞdžƉĞŶƐĞƐŽĨƚŚŝƐƉƌŽũĞĐƚĂƌĞĂƐĨŽůůŽǁƐ͗ &281&,/$&7,21'$7( 3URMHFW%XGJHW )HDVLELOLW\5HSRUW &216758&7,21&2676 6WUHHW 6WRUPVHZHU 3HGHVWULDQ)DFLOLWLHV 6LGHZDON 7UDLO 7UDIILF6LJQDOVDQG6WUHHW/LJKWLQJ 68%727$/ &RQWLQJHQFLHV ƐƐŝŵƉƌŽǀĞŵĞŶƚƐŝƐΨϯϮϲ͕ϳϲϳ͘ )81',1*',675,%87,21 $VVHVVPHQW6WUHHWV ' &281&,/$&7,215(48(67(' ϭ͘KƌĚĞƌŝŶŐƚŚĞWƌŽũĞĐƚ,ĞĂƌŝŶŐĨŽƌEŽǀĞŵďĞƌϯ͕ϮϬϭϰ͘ Ϯ͘KƌĚĞƌŝŶŐƚŚĞƐƐĞƐƐŵĞŶƚ,ĞĂƌŝŶŐĨŽƌEŽǀĞŵďĞƌϭϳ͕ϮϬϭϰ͘ ϯ͘ĐĐĞƉƚŝŶŐƚŚĞ&ĞĂƐŝďŝůŝƚLJZĞƉŽƌƚ͘ 3DFNHW3J 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO3XEOLF:RUNV %XVLQHVV ,7(0'(6&5,37,2135(3$5('%< 6SHHG/LPLW&KDQJH5HTXHVWIRUQG6WUHHW6: *HRUJH&DOHEDXJK :LWKWKHFRPSOHWLRQRIWKHUHFRQVWUXFWLRQRIQG6WUHHW6:EHWZHHQ7+DQGUG$YHQXHWKH&LW\ KDVUHFHLYHGDUHTXHVWIURPWKH8SWRZQ1HLJKERUKRRGIRUDORZHUVSHHGOLPLWRQWKLVVHFWLRQRIQG 6WUHHW6:7KHFXUUHQWVSHHGOLPLWRQWKLVVHFWLRQRIQG6WUHHWLVPSK7KHPSKVSHHGOLPLW ZDVDXWKRUL]HGE\D01'27&RPPLVVLRQHU2UGHULQ 7KHVHFWLRQRIQG6WUHHW6:EHWZHHQ7+DQGUG$YHQXHPHHWVWKHFULWHULDIRUGHVLJQDWLRQDV DQXUEDQGLVWULFWVWUHHW8UEDQGLVWULFWVWUHHWVKDYHDVSHHGOLPLWRIPSK8QGHU6WDWH6WDWXWHWKH &LW\FDQQHJDWHWKHSULRU&RPPLVVLRQHU2UGHUDQGHVWDEOLVKDPSKVSHHGOLPLWRQWKHVXEMHFW VHFWLRQRIQG6WUHHW6:E\DGRSWLQJDUHVROXWLRQLQGLFDWLQJWKDWWKHVWUHHWPHHWVWKHXUEDQGLVWULFW VWUHHWFULWHULDDQGWKDWWKH&LW\LQWHQGVWRSRVWWKHVWUHHWZLWKPSKVSHHGOLPLWVLJQV7KH UHVROXWLRQPXVWEHVXEPLWWHGWR01'27DQG01'27KDVWHQGD\VWRFRQVLGHURXUDFWLRQDQGREMHFW WRLW 3XEOLF:RUNVLVQRWRSSRVHGWRWKHUHGXFWLRQRIWKHVSHHGOLPLWIURPPSKWRPSKRQQG6WUHHW 6:DQGUHFRPPHQGVWKDWWKH&LW\&RXQFLODGRSWDUHVROXWLRQHVWDEOLVKLQJWKHPSKVSHHGOLPLWRQ WKHVXEMHFWVHFWLRQRIQGVWUHHW6: &281&,/$&7,215(48(67(' $GRSWDUHVROXWLRQHVWDEOLVKLQJDPSKVSHHGOLPLWRQQG6WUHHW6:IURP7+WRUG$YHQXH 6: 3DFNHW3J 'D 5(62/87,21 5(62/87,21(67$%/,6+,1*$03+63(('/,0,721 5' 6(&21'675((76:)5207+72$9(18(6: :+(5($60LQQHVRWD6WDWXWHV6HFWLRQVXEG E SURYLGHVWKDWWKHJRYHUQLQJ ERG\RIDFLW\RUWRZQPD\E\UHVROXWLRQGHVLJQDWHVSHHGOLPLWVRIPSKRQDQ\FLW\VWUHHW 0XQLFLSDO6WDWH$LG6WUHHWRU7RZQ5RDGZKLFKPHHWVWKHGHILQLWLRQRI³8UEDQ'LVWULFW´DV GHILQHGLQ0LQQ6WDWVXEGDQG :+(5($6WKH&LW\RI5RFKHVWHUKDVVXFKDVWUHHWRQZKLFKDVSHHGOLPLWLQH[FHVVRI PSKKDVEHHQHVWDEOLVKHGSXUVXDQWWRDQHQJLQHHULQJDQGWUDIILFLQYHVWLJDWLRQE\WKH &RPPLVVLRQHURI7UDQVSRUWDWLRQZKLFKQRZPHHWVWKHGHILQLWLRQRI³8UEDQ'LVWULFW´IRUDWOHDVW DTXDUWHUPLOHDQG UG :+(5($6WKLVVWUHHWLVNQRZQDV6HFRQG6WUHHW6:IURP7+WR$YHQXH 6: ³5RDGZD\´ DQG :+(5($6WKH&LW\DQG2OPVWHG&RXQW\KDYHHQWHUHGLQWRDQDJUHHPHQWWRWUDQVIHU WKHMXULVGLFWLRQRIWKH5RDGZD\IURPWKH&RXQW\WRWKH&LW\XSRQFRPSOHWLRQRIWKH5RDGZD\¶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rial]] [[150,972,163,1024][11][B,I,][Arial]] 7KHDSSOLFDQWPXVWFRPSO\ZLWK5&2DVWRDPLQLPXPRIVHYHQDGGLWLRQDOSDUNLQJVSDFHV[[2406,1025,2419,1077][11][B,I,][Arial]] &281&,/$&7,215(48(67(' 7KH&RXQFLO¶VRSW LRQVDUH 'HQ\WKHUHTXHVW $PHQG&RQGLWLRQDVWKH&RXQFLOZLVKHVRU 6HWWKHPDWWHURQIRUDSXEOLFKHDULQJWRFRQVLGHUWKHUHTXHVW 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (E KĐƚŽďĞƌϮ͕ϮϬϭϰ ZŽĐŚĞƐƚĞƌŝƚLJŽƵŶĐŝů ZĞ͗EŝĐŚŽůĂƐƉĂƌƚŵĞŶƚƐʹ,ĂŵŝůƚŽŶƌĞƋƵĞƐƚƚŽĂůƚĞƌƉůĂĐĞŵĞŶƚŽĨƉŽǁĞƌůŝŶĞƐĂŶĚƉĂƌŬŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ ĞĂƌŽƵŶĐŝůDĞŵďĞƌƐ͗ dŚĞ<WEŽĂƌĚǁŽƵůĚůŝŬĞƚŽŐŽŽŶƌĞĐŽƌĚĂƐŬŝŶŐLJŽƵƚŽƵƉŚŽůĚƚŚĞƌĞƋƵŝƌĞŵĞŶƚĨŽƌďƵƌŝĞĚ ĞůĞĐƚƌŝĐĂůƐĞƌǀŝĐĞŝŶƚŚĞϳϬϬďůŽĐŬŽĨt͘ĞŶƚĞƌ^ƚ͘Dƌ͘DĂĐ,ĂŵŝůƚŽŶŝƐĂƐŬŝŶŐƚŚĂƚďƵƌŝĞĚƵƚŝůŝƚŝĞƐďĞ ƌĞŵŽǀĞĚĨƌŽŵƚŚĞůŝƐƚŽĨĐŽŶĚŝƚŝŽŶƐ͘&ƵƌƚŚĞƌŵŽƌĞǁĞĂƐŬƚŚĂƚƚŚĞĂĐĐĞƉƚĞĚĚĞƐŝŐŶďĞďƵŝůƚĂƐĚƌĂǁŶ͘/ƚŝƐ ŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐĨƌŽŵDƌ͘tŽũĐŝŬƚŚĂƚĂƐŽůƵƚŝŽŶŚĂƐďĞĞŶǁŽƌŬĞĚŽƵƚǁŝƚŚZWhĂŶĚƚŚĞĐŝƚLJƚŚĂƚ ǁŽƵůĚĂůůŽǁKd,ƚŚĞƵŶĚĞƌŐƌŽƵŶĚŝŶŐŽĨĞůĞĐƚƌŝĐĂůƐĞƌǀŝĐĞEƚŚĞĨƌŽŶƚĐŽƵƌƚLJĂƌĚĚĞƐŝŐŶ͘Dƌ͘tŽũĐŝŬ ŚĂƐƚŽůĚƵƐƚŚĂƚƵƚŝůŝƚLJůŝŶĞƐĐĂŶďĞůĂŝĚƵŶĚĞƌƚŚĞƐŝĚĞǁĂůŬŽƌƵƐĞĂƐůŝƚƚůĞĂƐĂϯĨŽŽƚĞĂƐĞŵĞŶƚ͘ůƐŽZWh ĐĂŶƌĞůŽĐĂƚĞϮƉŽůĞƐƚŽƚŚĞŽƚŚĞƌƐŝĚĞŽĨƚŚĞƐƚƌĞĞƚƚŽƐĞƌǀĞƚŚĞƉƌŽƉĞƌƚŝĞƐŽŶƚŚĞŶŽƌƚŚƐŝĚĞŽĨƚŚĞƐƚƌĞĞƚ ĂƚĂĐŽƐƚŽĨŽŶůLJΨϭϮ͕ϱϬϬ͘ŶĚ͕ŝĨŶĞĐĞƐƐĂƌLJ͕ůŽǁǁĂůůƐĐŽƵůĚďĞďƵŝůƚŽǀĞƌƚŚĞĞĂƐĞŵĞŶƚ͘Dƌ͘,ĂŵŝůƚŽŶ ŚĂƐŽƉƚŝŽŶƐƚŽŵĞĞƚƚŚŝƐĐŽŶĚŝƚŝŽŶ͘ ůƚŚŽƵŐŚĂŵĂũŽƌŝƚLJŽĨƚŚĞ<WEďŽĂƌĚĂŶĚƚŚĞƌĞŐƵůĂƌůLJĂƚƚĞŶĚŝŶŐŵĞŵďĞƌƐŚŝƉĞŶĚŽƌƐĞĚƚŚŝƐ ƉƌŽũĞĐƚƚŚĞƌĞƌĞŵĂŝŶĞĚĂŶŽĨƚĞŶĞdžƉƌĞƐƐĞĚǀŝĞǁƚŚĂƚƚŚŝƐďƵŝůĚŝŶŐ͕ĂƐĚĞƐŝŐŶĞĚ͕ŝƐŽǀĞƌůLJůĂƌŐĞ͘Ŷ ĞƐƐĞŶƚŝĂůŵŝƚŝŐĂƚŝŽŶŽĨƚŚŝƐƐĐĂůĞŝƐƐƵĞŝƐƚŚĞƉůĂŶƚŝŶŐŽĨŽǀĞƌƐƚŽƌLJƚƌĞĞƐŽŶƚŚĞďŽƵůĞǀĂƌĚ͘dŚŝƐĐĂŶŶŽƚďĞ ĂĐĐŽŵƉůŝƐŚĞĚǁŝƚŚŽǀĞƌŚĞĂĚĞůĞĐƚƌŝĐĂůǁŝƌĞƐ͘ƋƵĂůůLJŝŵƉŽƌƚĂŶƚŝƐƚŚĞĨƌŽŶƚĐŽƵƌƚLJĂƌĚ͘ŽƚŚŽĨƚŚĞƐĞ ĚĞƚĂŝůƐŶĞĞĚƚŽďĞŝŶĐůƵĚĞĚŝŶƚŚĞƉůĂŶ͘WůĞĂƐĞĚŽŶŽƚďĂĐŬŽĨĨĨƌŽŵƚŚĞƐĞƌĞƋƵŝƌĞŵĞŶƚƐ͘ Dƌ͘,ĂŵŝůƚŽŶŝƐĂůƐŽĐůĂŝŵŝŶŐƚŚĂƚŚĞŚĂƐŵĞƚƚŚĞƉĂƌŬŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐ͘KŶƚŚŝƐŝƐƐƵĞǁĞĂǁĂŝƚ ƚŚĞŽƵƚĐŽŵĞŽĨĚŝƐĐƵƐƐŝŽŶĂƚƚŚĞŚĞĂƌŝŶŐ͘ƐĂŐƌŽƵƉǁĞŚĂǀĞǀĂƌLJŝŶŐŽƉŝŶŝŽŶƐ͘dŚĞ<WEĂŶĚƚŚĞŝƚLJ ŚĂǀĞƚLJƉŝĐĂůůLJĚŝƐĂŐƌĞĞĚŽŶƚŚĞƵƐƵĂůƐƚĂŶĚĂƌĚƐ͘'ĞŶĞƌĂůůLJǁĞƚŚŝŶŬƐƵƌĨĂĐĞƉĂƌŬŝŶŐůŽƚƐĂƌĞƚŽďĞ ĂǀŽŝĚĞĚǁŚĞŶĞǀĞƌĂŶĚǁŚĞƌĞǀĞƌƉŽƐƐŝďůĞ͘tĞƉƌĞĨĞƌŶĞǁĐŽŶƐƚƌƵĐƚŝŽŶƚŽŚĂǀĞŝŶͲďƵŝůĚŝŶŐƉĂƌŬŝŶŐĂŶĚ ƐƵƉƉŽƌƚƐƚĂŶĚĂƌĚƐƚŚĂƚƚĂŬĞŝŶƚŽĂĐĐŽƵŶƚƚŚĞƵƌďĂŶŶĂƚƵƌĞŽĨŽƵƌƐƚƌĞĞƚƐ͘dŚĞĐĞŶƚƌĂůƋƵĞƐƚŝŽŶƐĂƌĞ͗ ^ŚŽƵůĚƚŚŝƐĂƐƉĞĐƚƌĞŐƵůĂƚĞƚŚĞƐŝnjĞŽĨĂŐŝǀĞŶĚĞǀĞůŽƉŵĞŶƚ͍ƚǁŚĂƚůĞǀĞůƐŚŽƵůĚƚŚŝƐƚŚĞŶďĞƐĞƚ͍ ŶĚ &ŝŶĂůůLJ͕ŝŶĂůĞƚƚĞƌƚŽDƌ͘ƌĞŶƚ^ǀĞŶďLJŽĨ^ĞƉƚĞŵďĞƌϮϮ͕Dƌ͘,ĂŵŝůƚŽŶůŝƐƚƐ;ϰͿĐŽŶĚŝƚŝŽŶƐǁŝƚŚ ƚŚĞŶĞŝŐŚďŽƌŚŽŽĚ͘,ĞŚĂƐĨŽƌŐŽƚƚĞŶƚŽůŝƐƚƚŚĞĨŝĨƚŚĐŽŶĚŝƚŝŽŶǁŚŝĐŚǁĂƐƚŚĞƉƌĞƐĞƌǀĂƚŝŽŶŽĨƚŚĞ<ƵƚnjŬLJ ŚŽŵĞ͘dŚĞŚŽŵĞǁĂƐƚŽďĞŵŽǀĞĚĂŶĚŝƚŚĂƐŵŽǀĞĚ͕ŚŽǁĞǀĞƌ͕ŝƚǁĂƐĂůƐŽŝŶĚŝĐĂƚĞĚƚŚĂƚŝƚǁŽƵůĚďĞ ŽĨĨĞƌĞĚĨŽƌƐĂůĞƚŽĂŶĞŝŐŚďŽƌŚŽŽĚƉĞƌƐŽŶŽƌŐƌŽƵƉ͘tĞǁŝůůďĞŝŶƚĞƌĞƐƚĞĚƚŽŬŶŽǁǁŚĂƚDƌ͘,ĂŵŝůƚŽŶŝƐ ƉůĂŶŶŝŶŐŽŶĚŽŝŶŐǁŝƚŚƚŚĞŚŽŵĞŝĨEŝĐŚŽůĂƐƌĞƚĂŝŶƐŽǁŶĞƌƐŚŝƉ͘tĞŚŽƉĞLJŽƵǁŝůůĂůůŽǁƵƐƚŝŵĞƚŽ ƚŚ ŽďƚĂŝŶƚŚĞƐĞĂŶƐǁĞƌƐĂƚƚŚĞŚĞĂƌŝŶŐŽŶKĐƚŽďĞƌϲ͘ ^ŝŶĐĞƌĞůLJ͕ ĂǀŝĚĚŵŽŶƐŽŶ <WEWƌĞƐŝĚĞŶƚ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¶VDWWRUQH\%LOO)UHQFKILOHVD0RWLRQWR:LWKGUDZ*XLOW\3OHD+HDULQJLV VHWIRU %LOO)UHQFKUHTXHVWVFRQWLQXDQFHRIWKH0RWLRQWR:LWKGUDZ*XLOW\3OHDKHDULQJVHWIRU 7KLVUHTXHVWLVJUDQWHG &LW\$WWRUQH\UHTXHVWVFRQWLQXDQFHRI0RWLRQWR:LWKGUDZ*XLOW\3OHDKHDULQJVHWIRU )D &UDLJ5DPDNHULQFRXUWZLWK%LOO)UHQFKEHIRUH-XGJH:LHQHUV7KHPRWLRQWRZLWKGUDZ WKHJXLOW\SOHDLVGHQLHG&UDLJ5DPDNHUDGPLWVKHKDVQRWFRPSOLHGZLWKWKH&RXUW¶V RUGHU+HLVVHQWHQFHGWRVHUYHGD\VMDLOZLWKZRUNUHOHDVHFRPPHQFLQJIRU UHQWLQJZLWKRXWDUHQWDOFHUWLILFDWHDQGIDLOXUHWRFRPSOHWHUHTXLUHG3XEOLF6DIHW\ VHPLQDU %XLOGLQJ6DIHW\VHQWDQRWLFHWR&UDLJ5DPDNHUHQFRXUDJLQJKLPWRDWWHQG 3XEOLF6DIHW\&ODVV+HGRHVQRWDWWHQGWKHFODVV )RURYHUWZR\HDUVWKHSURSHUW\FRQWLQXHVWREHUHQWHGZLWKRXWDYDOLGUHQWDOFHUWLILFDWHLQYLRODWLRQRI 5&2/HJDODFWLRQWDNHQE\5RFKHVWHU&LW\$WWRUQH\¶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ò$YHQXH6(RZQHGE\&UDLJ5DPDNHU 0HPEHUV3UHVHQW&RXQFLO3UHVLGHQW5DQG\6WDYHUDQGWK:DUG&RXQFLOPHPEHU0DUN%LOGHUEDFN E\ SKRQH 6WDII3UHVHQW7HUU\6SDHWK&LW\$GPLQLVWUDWLRQ3DWULFLD$OIUHGVRQ&LW\$WWRUQH\¶V2IILFH5DQG\-RKQVRQ %XLOGLQJ6DIHW\'HSDUWPHQW6XVDQ/H*DUH±*XOGHQ%XLOGLQJ6DIHW\'HSDUWPHQW 2WKHUV3UHVHQW1RQH 2Q$XJXVWWKH5HQWDO+RXVLQJ&RPSODLQW%RDUGKHOGDSXEOLFKHDULQJUHODWHGWRWKHKRXVLQJFRGH YLRODWLRQVRQWKHSURSHUW\ORFDWHGDWò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rial]]3ODQQLQJ6WDII5HYLHZDQG5HFRPPHQG [[1012,689,1135,741][11][B,I,][Arial]]DWLRQ [[1136,689,1149,741][11][,,][Arial]] 1RREMHFWLRQVZHUHUHFHLYHGIURPWKHUHIHUUDODJHQFLHV6WDIIUHFRPPHQGVDSSURYDOWRYDFDWHWKHHDVHPHQW DVSHWLWLRQHGVXEMHFWWRWKHIROORZLQJFRQGLWLRQV [[150,900,162,948][10][B,I,][Arial]] [[162,900,174,948][10][B,I,][Arial]] [[225,900,2029,948][10][B,I,][Arial]]7KHDSSOLFDQWVKDOOGHGLFDWHWKHIRRWXWLOLW\HDVHPHQWVKRZQRQWKH(DVHPHQW([KLEL W6 [[2031,900,2307,948][10][B,I,][Arial]]DLGHDVHPHQW [[225,948,2337,996][10][B,I,][Arial]]VKDOOEHUHFRUGHGZLWKLQGD\VIURPWKHGDWHRI&LW\&RXQFLODSSURYDO)DLOXUHWRFRPSOHWHWKHHDVHPHQW [[225,996,1219,1044][10][B,I,][Arial]]ZLWKLQGD\VZLOOYRLGWKHUHVROXWLRQIRUWKHULJKW [[1218,996,1232,1044][10][B,I,][Arial]] [[1232,996,1278,1044][10][B,I,][Arial]]RI [[1272,996,1286,1044][10 ][B,I,][Arial]] [[1286,996,1741,1044][10][B,I,][Arial]]ZD\YDFDWLRQDSSURYDO [[1742,996,1754,1044][10][B,I,][Arial]] [[225,1044,237,1092][10][B,I,][Arial]] [[375,1044,387,1092][10][B,I,][Arial]] [[225,1096,1337,1144][10][B,I,][Arial]]7KHYDFDWLRQUHVROXWLRQPXVWQRWEHUHFRUGHGXQWLOVXFK [[1339,1096,1351,1144][10][B,I,][Arial]] [[1350,1096,2152,1144][10][B,I,][Arial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rial]]3ODQQLQJ'HSDUWPHQW5HYLHZ [[829,723,842,775][11][B,I,][Arial]] 6HHDWWDFKHGVWDIIUHSRUWGDWHG2FWREHUUHFRPPHQGLQJDSSURYDOVXEMHFWWRWKHIROORZLQJFRQGLWLRQ 2XWORWV% (LQ6FHQLF2DNV1LQWK$GGLWLRQVKDOOEHGHGLFDWHGWRWKH&LW\SULRUWRWKHUHFRUGLQJRI WKLVILQDOSODW &281&,/$&7,215(48(67(' [[285,1192,2352,1249][12][B,I,][Arial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHD [[285,1249,1444,1306][12][B,I,][Arial]]UHVROXWLRQZLWKILQGLQJVVXSSRUWLQJWKHLUGHFLVLRQ [[1445,1249,1458,1306][12][B,I,][Arial]] 3DFNHW3J )D 3DFNHW3J 3DFNHW3J )D )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 +HDULQJV3ODQQLQJDQG=RQLQJ ,7(0'(6&5,37,2135(3$5('%< 3UHOLPLQDU\3ODW53/$7WREHNQRZQDV%DGJHU+LOOV$SDUWPHQWV %UHQW6YHQE\ E\,5(73URSHUWLHV [[150,723,239,775][11][B,I,][Arial]]&LW\ [[234,723,247,775][11][B,I,][Arial]] [[247,723,1372,775][11][B,I,][Arial]]3ODQQLQJDQG=RQLQJ&RPPLVVLRQ5HFRPPHQGDWLRQ [[1371,723,1384,775][11][,,][Arial]] 7KH&LW\3ODQQLQJDQG=RQLQJ&RPPLVVLRQKHOGDSXEOLFKHDULQJRQ6HSWHPEHUWRFRQVLGHUWKLV SUHOLPLQDU\SODWDQGVXEVWDQWLDOODQG$OWHUDWLRQWRDOORZIRUD0XOWLIDPLO\GHYHORSPHQW 7KH3ODQQLQJ&RPPLVVLRQIRXQGWKDWWKLVSUHOLPLQDU\SODWFRQIRUPVWRWKHFULWHULDOLVWHGLQWKH/DQG 'HYHORSPHQW0DQXDODQGUHFRPPHQGVDSSURYDORIWKLVSUHOLPLQDU\SODWZLWKWKHIROORZLQJPRGLILFDWLRQVRU FRQGLWLRQV 0U6LPVPRYHGWRUHFRPPHQGDSSURYDORIWKH6XEVWDQWLDO/DQG$OWHUDWLRQDQG3UHOLPLQDU\3ODW5 3/$7WREHNQRZQDV%DGJHU+LOOV$SDUWPHQWZLWKWKHVWDIIUHFRPPHQGHGFRQGLWLRQV0U:DOWHUV VHFRQGHGWKHPRWLRQ7KHPRWLRQFDUULHG [[150,1354,160,1393][8][,I,][Arial]] 7KH2ZQHUDQG&LW\DFNQRZOHGJHWKDWWKLV3URSHUW\LVVXEMHFWWRWKHWHUPVDQGFRQGLWLRQVRIWKH)LUVW 6XSSOHPHQWDO$PHQGPHQWWR'HYHORSPHQW$JUHHPHQWIRU9HUQD%DGJHU(VWDWHV*'3ODFHGZLWKLQWKHGULYLQJODQHVRIWKHSULYDWHURDGZD\VDVPXFKDV SRVVLEOH ) [[210,151,222,199][10][B,I,][Arial]] [[222,151,234,199][10][B,I,][Arial]] [[285,151,2396,199][10][B,I,][Arial]]7KHDSSOLFDQWVKDOOSURYLGHVXUHW\WKDWJXDUDQWHHVWKHVLWHZLOOEHIXOO\UHVWRUHGDIW HUWKHFRPSOHWLRQRIWKH [[285,199,1636,247][10][B,I,][Arial]]H[FDYDWLRQDFWLYLW\6DLGVXUHW\PXVWEHSURYLGHGSULRUWRFRPPHQF [[1637,199,2312,247][10][B,I,][Arial]]HPHQWRIJUDGLQJDFWLYLWLHVRQWKH [[285,247,465,295][10][B,I,][Arial]]SURSHUW\ [[466,247,478,295][10][B,I,][Arial]] &281&,/$&7,215(48(67(' 7KH&RXQFLOPD\DSSURYHDSSURYHZLWKFRQGLWLRQVRUGHQ\WKHODQGVXEGLYLVLRQSHUPLW [[210,477,223,534][12][B,I,][Arial]] [[224,477,237,534][12][B,I,][Arial]] 7KH&RXQFLOPXVWPDNHILQGLQJVRIIDFWEDVHGRQWKHFULWHULDLQFOXGHGLQWKHVWDIIUHSRUW $PRWLRQWRGHQ\PXVWLQFOXGHVXSSRUWLQJUHDVRQVIRUDFRQFOXVLRQWKDWDWOHDVWRQHRI WKHVHYHQWHHQILQGLQJVIRUGHQLDOLQ3DUDJUDSKFDQEHPDGH [[1873,664,1886,721][12][B,I,][Arial]] [[285,723,2354,785][13][,I,][Arial]]7KH&RXQFLOVKRXOGLQFOXGHDPRWLRQWRDGRSWILQGLQJVWRVXSSRUWHLWKHUDSSURYDORU [[210,726,223,783][12][B,I,][Arial]] [[224,726,237,783][12][B,I,][Arial]] [[285,786,781,848][13][,I,][Arial]]GHQLDORIWKHSURSRVH [[782,786,1660,848][13][,I,][Arial]]G6XEVWDQWLDO/DQG$OWHUDWLRQ$FWLYLW\ [[1660,789,1673,846][12][B,I,][Arial]] 3DFNHW3J )D 3DFNHW3J 3DFNHW3J )D 3DFNHW3J )D )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 +HDULQJV3ODQQLQJDQG=RQLQJ ,7(0'(6&5,37,2135(3$5('%< $SSHDO5$3ILOHGE\(ULF(JJOHU %UHQW6YHQE\ [[210,689,1433,746][12][B,I,][Arial]]5RFKHVWHU3ODQQLQJDQG=RQLQJ&RPPLVVLRQ$FWLRQ [[1433,689,1446,746][12][B,I,][Arial]] 2Q6HSWHPEHUWKH5RFKHVWHU&LW\3ODQQLQJDQG=RQLQJ&RPPLVVLRQGHQLHGD9DULDQFHUHTXHVWRIWKH DSSOLFDQW(ULF(JJOHUWRDOORZIRUDUHDUGZHOOLQJRQWKHSURSHUW\WKDWGRHVQ¶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ƋƵĞƐƚŝŽŶƐĂƌĞ͗ ^ŚŽƵůĚƚŚŝƐĂƐƉĞĐƚƌĞŐƵůĂƚĞƚŚĞƐŝnjĞŽĨĂŐŝǀĞŶĚĞǀĞůŽƉŵĞŶƚ͍ƚǁŚĂƚůĞǀĞůƐŚŽƵůĚƚŚŝƐƚŚĞŶďĞƐĞƚ͍ ŶĚ &ŝŶĂůůLJ͕ŝŶĂůĞƚƚĞƌƚŽDƌ͘ƌĞŶƚ^ǀĞŶďLJŽĨ^ĞƉƚĞŵďĞƌϮϮ͕Dƌ͘,ĂŵŝůƚŽŶůŝƐƚƐ;ϰͿĐŽŶĚŝƚŝŽŶƐǁŝƚŚ ƚŚĞŶĞŝŐŚďŽƌŚŽŽĚ͘,ĞŚĂƐĨŽƌŐŽƚƚĞŶƚŽůŝƐƚƚŚĞĨŝĨƚŚĐŽŶĚŝƚŝŽŶǁŚŝĐŚǁĂƐƚŚĞƉƌĞƐĞƌǀĂƚŝŽŶŽĨƚŚĞ<ƵƚnjŬLJ ŚŽŵĞ͘dŚĞŚŽŵĞǁĂƐƚŽďĞŵŽǀĞĚĂŶĚŝƚŚĂƐŵŽǀĞĚ͕ŚŽǁĞǀĞƌ͕ŝƚǁĂƐĂůƐŽŝŶĚŝĐĂƚĞĚƚŚĂƚŝƚǁŽƵůĚďĞ ŽĨĨĞƌĞĚĨŽƌƐĂůĞƚŽĂŶĞŝŐŚďŽƌŚŽŽĚƉĞƌƐŽŶŽƌŐƌŽƵƉ͘tĞǁŝůůďĞŝŶƚĞƌĞƐƚĞĚƚŽŬŶŽǁǁŚĂƚDƌ͘,ĂŵŝůƚŽŶŝƐ ƉůĂŶŶŝŶŐŽŶĚŽŝŶŐǁŝƚŚƚŚĞŚŽŵĞŝĨEŝĐŚŽůĂƐƌĞƚĂŝŶƐŽǁŶĞƌƐŚŝƉ͘tĞŚŽƉĞLJŽƵǁŝůůĂůůŽǁƵƐƚŝŵĞƚŽ ƚŚ ŽďƚĂŝŶƚŚĞƐĞĂŶƐǁĞƌƐĂƚƚŚĞŚĞĂƌŝŶŐŽŶKĐƚŽďĞƌϲ͘ ^ŝŶĐĞƌĞůLJ͕ ĂǀŝĚĚŵŽŶƐŽŶ <WEWƌĞƐŝĚĞŶƚ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³&RXQFLO´ RIWKH&LW\RI5RFKHVWHU 0LQQHVRWD WKH³&LW\´ DVIROORZV 6HFWLRQ5HFLWDOV ,WKDVEHHQSURSRVHGWKDWWKH5RFKHVWHU(FRQRPLF'HYHORSPHQW$XWKRULW\ WKH ³('$´ HVWDEOLVK(FRQRPLF'HYHORSPHQW'LVWULFW1R WKH³'HYHORSPHQW'LVWULFW´ DGRSW WKH(FRQRPLF'HYHORSPHQW3ODQIRUWKH'HYHORSPHQW'LVWULFW WKH³'HYHORSPHQW3ODQ´ HVWDEOLVK7D[,QFUHPHQW)LQDQFLQJ'LVWULFW1RZLWKLQWKH'HYHORSPHQW'LVWULFW WKH³ 7,) 'LVWULFW´ DQGDGRSWD7D[,QFUHPHQW)LQDQFLQJ3ODQWKHUHIRU WKH³ 7,)3ODQ´DQGWRJHWKHUZLWK WKH'HYHORSPHQW3ODQWKH³3ODQV´ DOOSXUVXDQWWRDQGLQFRQIRUPLW\ZLWKDSSOLFDEOHODZ LQFOXGLQJ0LQQHVRWD6WDWXWHV6HFWLRQVWKURXJKXQW\WREHLQFOXGHGLQWKH7,)'LVWULFW GHOLYHU\RIWKH7,)3ODQWRWKH&RXQW\DQG6FKRRO%RDUGDQGWKHKROGLQJRIDSXEOLFKHDULQJ WKHUHRQE\WKH&LW\IROORZLQJQRWLFHWKHUHRISXEOLVKHGLQWKH&LW\¶VRIILFLDOQHZVSDSHUDWOHDVW EXWQRWPRUHWKDQGD\VSULRUWRWKHSXEOLFKHDULQJ &HUWDLQZULWWHQUHSRUWVDQGRWKHUGRFXPHQWDWLRQ FROOHFWLYHO\WKH³ 5HSRUWV´ UHODWLQJWRWKH3ODQVLQFOXGLQJWKHWD[LQFUHPHQWDSSOLFDWLRQPDGHDQGRWKHULQIRUPDWLRQ VXSSOLHGE\%URDGZD\DW&HQWHU//&D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ WKH³&RPSDQ\´ DVWRWKHDFWLYLWLHVFRQWHPSODWHGWKHUHLQDQGWKH5HGHYHORSPHQW7,)'LVWULFW$VVHVVPHQW VXSSOLHGE\763,QFGDWHG$SULODVUHDIILUPHGE\DOHWWHUGDWHG$SULO )E SURFHHGLQJVRQWKH3ODQV7KH5HSRUWVLQFOXGHGDWDLQIRUPDWLRQDQGRUVXEVWDQWLDWLRQ FRQVWLWXWLQJRUUHODWLQJWR WKH³VWXGLHVDQGDQDO\VHV´RQZK\WKH7,)'LVWULFWPHHWVWKH UHTXLUHPHQWVWREHDUHGHYHORSPHQWWD[LQFUHPHQWILQDQFLQJGLVWULFW ZK\WKHDVVLVWDQFH VDWLVILHVWKHVRFDOOHG³EXWIRU´WHVWDQG WKHEDVHVIRUWKHRWKHUILQGLQJVDQGGHWHUPLQDWLRQV PDGHLQWKLVUHVROXWLRQ7KH&RXQFLOKHUHE\FRQILUPVUDWLILHVDQGDGRSWVWKH5HSRUWVZKLFKDUH KHUHE\LQFRUSRUDWHGLQWRDQGPDGHDVIXOO\DSDUWRIWKLVUHVROXWLRQWRWKHVDPHH[WHQWDVLIVHW IRUWKLQIXOOKHUHLQ 7KH7,)'LVWULFWLVEHLQJHVWDEOLVKHGWRIDFLOLWDWHWKHDFTXLVLWLRQFRQVWUXFWLRQDQG HTXLSSLQJRIDQDSSUR[LPDWHO\VTXDUHIRRWVWRU\DERYHJUDGHVN\ZD\FRQQHFWHG VWUXFWXUHZLWKXQGHUJURXQGSDUNLQJKRWHOURRPVDSDUWPHQWXQLWVDQGUHWDLORQWKHVWUHHW DQGVN\ZD\OHYHOV WKH³'HYHORSPHQW´ 6HFWLRQ)LQGLQJVIRUWKH$GRSWLRQDQG$SSURYDORIWKH3ODQV 7KH&RXQFLOKHUHE\ILQGVWKDWWKH'HYHORSPHQW'LVWULFWLVSURSHUDQGGHVLUDEOHWR HVWDEOLVKLQWKH&LW\DQGWKH'HYHORSPHQW3ODQZLOODIIRUGPD[LPXPRSSRUWXQLW\FRQVLVWHQW ZLWKWKHQHHGVRIWKH&LW\DVDZKROHIRUWKHGHYHORSPHQWRIWKH'HYHORSPHQW'LVWULFWE\ SULYDWHHQWHUSULVH 7KH&RXQFLOKHUHE\ILQGVWKDWWKH7,)'LVWULFWLVLQWKHSXEOLFLQWHUHVWDQGLVD ³UHGHYHORSPHQWGLVWULFW´ZLWKLQWKHPHDQLQJRI0LQQHVRWD6WDWXWHV6HFWLRQWRDGHJUHHUHTXLULQJ VXEVWDQWLDOUHQRYDWLRQRUFOHDUDQFH7KH7,)'LVWULFWFRQVLVWVRISDUFHOVDQGDOORIWKHSDUFHOV DUH³RFFXSLHG´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¶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³'0&3ODQ´ LQDQWLFLSDWLRQWKDWWKH7,)3ODQDQGWKH 'HYHORSPHQWZLOOEHDSSURYHGE\WKH'HVWLQDWLRQ0HGLFDO&HQWHU&RUSRUDWLRQDVGHILQHGLQ 0LQQHVRWD6WDWXWHV6HFWLRQ6XEGLYLVLRQDVDPHQGHG 7KHSURYLVLRQVRIWKLV6HFWLRQDUHKHUHE\LQFRUSRUDWHGE\UHIHUHQFHLQWRDQG PDGHDSDUWRIWKH7,)3ODQ UHGLW´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¶VWKHQFXUUHQWDYHUDJH LQYHVWPHQWUHWXUQIRUVLPLODUDPRXQWDQGWHUP I 6XFK/RDQVZLWKLQWKHDERYHJXLGHOLQHVDUHSUHDSSURYHG7KH/RDQV QHHGQRWWDNHDQ\SDUWLFXODUIRUPDQGPD\EHXQGRFXPHQWHGH[FHSWWKDWWKH&LW\ )LQDQFH'LUHFWRUVKDOOVSHFLI\WKHSULQFLSDODPRXQWDQGLQWHUHVWUDWHDQGPDLQWDLQDOO QHFHVVDU\RUDSSOLFDEOHGDWDRQWKH/RDQV 3$66('$1'$'237('%<7+(&20021&281&,/2)7+(&,7<2) 52&+(67(50,11(627$7+,67+'$<2)2&72%(5 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 35(6,'(172)6$,'&20021&281&,/ $77(67 BBBBBBBBBBBBBBBBBBBBBBBBB &,7<&/(5. $SSURYHGWKLVBBBBGD\RI2FWREHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0$<252)6$,'&,7< 6HDORIWKH&LW\RI 5RFKHVWHU0LQQHVRWD Y5& 3DFNHW3J )E &RXQFLOPHPEHUBBBBBBBBBBBBBBBBBBBBBBBPRYHGWKHDGRSWLRQRIWKHIRUHJRLQJ UHVROXWLRQZKLFKPRWLRQZDVGXO\VHFRQGHGE\&RXQFLOPHPEHUBBBBBBBBBBBBBBBBBBBBBBB DQGXSRQYRWHEHLQJWDNHQWKHUHRQWKHIROORZLQJ&RXQFLOPHPEHUVYRWHGLQIDYRUWKHUHRI DQGWKHIROORZLQJ&RXQFLOPHPEHUVYRWHGDJDLQVWWKHVDPH ZKHUHXSRQVDLGUHVROXWLRQZDVGHFODUHGGXO\SDVVHGRQDGRSWHG Y5& 3DFNHW3J )E &,7<&/(5.¶6&(57,),&$7( ,WKHXQGHUVLJQHGEHLQJWKHGXO\TXDOLILHGDQGDFWLQJ&LW\&OHUNRIWKH&LW\RI 5RFKHVWHU0LQQHVRWD'2+(5(%<&(57,)<WKDW,KDYHFDUHIXOO\FRPSDUHGWKHDWWDFKHGDQG IRUHJRLQJH[WUDFWRIPLQXWHVRIDGXO\FDOOHGDQGUHJXODUO\KHOGPHHWLQJRIWKH&RPPRQ&RXQFLO RIVDLG&LW\KHOGRQ2FWREHUZLWKWKHRULJLQDOPLQXWHVWKHUHRIRQILOHLQP\RIILFHDQG, IXUWKHUFHUWLI\WKDWWKHVDPHLVDIXOOWUXHDQGFRUUHFWWUDQVFULSWWKHUHRILQVRIDUDVVDLGPLQXWHV UHODWHWRWKHDFWLRQVUHIHUHQFHGWKHUHLQZLWKUHVSHFWWRWKH('$¶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