The URL can be used to link to this page

Home My WebLink AboutJuly 6, 2015 Agenda Packet &,7<2)52&+(67(5 &LW\&RXQFLO$JHQGD &RXQFLO%RDUG&KDPEHUV WK6WUHHW6( 5HJXODU0HHWLQJ-XO\ &LW\&RXQFLO$JHQGD 0RQGD\-XO\ 3DJHRI '3XEOLF8WLOWL\%RDUG&RQVLGHUDWLRQ '2ZQHU&RQWUDFW±3XEOLF,PSURYHPHQWVWR6HUYH&DWDOLQD5LGJH±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±3XEOLF,PSURYHPHQWVWR6HUYHWKH6SULQJVDW6RXWK%URDGZD\± - ,WHP'DQGWKHUHDUH QXPHURXV&LW\2ZQHUFRQWUDFWVDURXQGWKH&LW\ZKHUHLVVXHVKDYHFRPHXS $SSURYHG 'D 5HJXODU$GMRXUQHG0HHWLQJ-XQH $GRSWHG5HVROXWLRQ1RDSSURYLQJ&LW\2ZQHU&RQWUDFWIRU3URMHFW1R- 3XEOLF,PSURYHPHQWVWRVHUYH$OSKD6XEGLYLVLRQZLWK$OSKD5HDOW\RI 5RFKHVWHU//&(OFRU&RQVWUXFWLRQ,QF$QG:6% $VVRFLDWHV,QF 5(68/7$'237('>81$1,0286@ 029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 0DUN+LFNH\&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV 2ZQHU&RQWUDFW±6DQLWDU\6HZHU0DQKROHDQG6WRUP6HZHU0DQKROHWR6HUYHWKH &DVFDGH$SDUWPHQWV±- $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH&LW\2ZQHU&RQWUDFWIRU3URMHFW1R -6DQLWDU\6HZHU0DQKROHDQG6WRUP6HZHU0DQKROHWRVHUYLFHWKH &DVFDGH$SDUWPHQWVZLWK3DWLQD5RFKHVWHU/DQG//&+HDUWODQG([FDYDWLQJ,QF $QG:6% $VVRFLDWHV,QF 5(68/7$'237('>81$1,0286@ 029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 0DUN+LFNH\&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV 2ZQHU&RQWUDFW±3XEOLF,PSURYHPHQWVWR6HUYH&UHHNVLGH6XEGLYLVLRQ±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ò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sŚĂƐĂůƌĞĂĚǇƉƌŽǀŝĚĞĚĂƉƉƌŽǆŝŵĂƚĞůǇϮϬŚŽƵƌƐŽĨƉƌŽďŽŶŽǁŽƌŬŽŶƚŚŝƐƉƌŽũĞĐƚ͘ƐŶŽƚĞĚĂďŽǀĞ͕ĂǀĞƌǇ ƌŽƵŐŚĞƐƚŝŵĂƚĞŽĨƚŚĞƉƌŽũĞĐƚĐŽƐƚŝƐΨϯϬϬ͕ϬϬϬǁŝƚŚƚŚĞĐŽƐƚŽĨĐŽŶƐƚƌƵĐƚŝŽŶƉƌŽǀŝĚĞĚďǇĚŽŶĂƚŝŽŶƐ͘ &281&,/$&7,215(48(67(' ,ZRXOGUHTXHVWWKDWWKHFRXQFLOSDVVDUHVROXWLRQRIVXSSRUWRIWKLVSXEOLFSULYDWHSDUWQHUVKLSWRUDLVH IXQGVWRPRYHWKHFORFNDQGEHOOWR)LUH6WDWLRQDW6RXWK%URDGZD\DQGWK6WUHHW6:DQGSURYLGH IXQGLQJRIIRUSURIHVVLRQDOVHUYLFHVIRUWKLVSURMHFW7KHZRXOGEHWUDQVIHUUHGIURPWKH &RQWLQJHQF\$FFRXQW 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( RI5RFKHVWHUZHWODQGDGPLQLVWUDWRUDFFRXQWKROGHUDQGWKHGHYHORSHU &281&,/$&7,215(48(67(' ,IWKHFRXQFLODJUHHVLWVKRXOGSDVVDUHVROXWLRQDSSURYLQJWKHUHSODFHPHQWSODQZLWKWKHUHFRPPHQGHGFRQGLWLRQV 3DFNHW3J 'D [[300,150,309,188][8][B,I,][Times New Roman]] [[300,188,309,226][8][B,I,][Times New Roman]] [[300,227,309,265][8][B,I,][Times New Roman]] HQJLQHHULQJSODQQLQJHQYLURQPHQWDOFRQVWUXFWLRQ 7KLUG$YHQXH6( 5RFKHVWHU01 7HOĨƌŽŵ ĞĂĐŚǁĞƚůĂŶĚďĂŶŬ͘ Z/d^WZKWK^dKt/d,ZtE&ZKDKhEdEK͘ ϭϱϵϮʹ^ĐŚŽĞŶĨĞůĚĞƌtĞƚůĂŶĚĂŶŬ ŽƐƚ ϯ ƌĞĚŝƚtĞƚůĂŶĚdŽƉŽ͘^ĞƚƚŝŶŐ ĐƌĞƐ EtŽƌWs ϭ ^ƵďͲ'ƌŽƵƉ;WĞƌͬ^Ƌ&ƚͿ ǁŝƚŚĚƌĂǁŶϮ dǇƉĞ &ƌĞƐŚ;tĞƚͿ ^tϬ͘ϭϲ//Ψϭ͘ϬϬ DĞĂĚŽǁ dŽƚĂůƐ͗Ϭ͘ϭϲĐƌĞƐсΨϲϵϲϵ͘ϲϬdŽƚĂůŽƐƚ (TXDO2SSRUWXQLW\(PSOR\HU ZVEHQJFRP 3DFNHW3J 'D '<ΘZ:WƌŽƉĞƌƚǇ ϲͬϮͬϭϱ WĂŐĞϮ /ĨǇŽƵŚĂǀĞĂŶǇƋƵĞƐƚŝŽŶƐŽƌĐŽŶĐĞƌŶƐƉůĞĂƐĞĐŽŶƚĂĐƚŵĞĂƚϱϬϳͲϮϭϴͲϯϯϴϬ͘ DĐ'ŚŝĞΘĞƚƚƐ͕ŝǀŝƐŝŽŶŽĨt^ĂŶĚƐƐŽĐŝĂƚĞƐ͕/ŶĐ͘ >ƵŬĞ>ƵŶĚĞ͕W^^W^ DŝŶŶĞƐŽƚĂWƌŽĨĞƐƐŝŽŶĂů^Žŝů^ĐŝĞŶƚŝƐƚͬtĞƚůĂŶĚ^ƉĞĐŝĂůŝƐƚ Đ͗'<ΘZ:>>ʹ'ĞŽƌŐŝĂdŽŽŐŽŽĚ ŶĐů͗ &ŝŐƵƌĞϭʹ^ĐŚŽĞŶĨĞůĚĞƌtĞƚůĂŶĚĂŶŬ>ŽĐĂƚŝŽŶ ƉƉĞŶĚŝǆʹZĞǀŝƐĞĚtĞƚůĂŶĚZĞƉůĂĐĞŵĞŶƚDEttĞƚůĂŶĚWĞƌŵŝƚƉƉůŝĐĂƚŝŽŶ͘ ƉƉĞŶĚŝǆʹDEttĞƚůĂŶĚĂŶŬŝŶŐƌĞĚŝƚWƵƌĐŚĂƐĞŐƌĞĞŵĞŶƚ [[300,1323,319,1407][18][B,I,][Times New Roman]] [[300,1409,319,1493][18][B,I,][Times New Roman]] [[300,1495,319,1579][18][B,I,][Times New Roman]] [[300,1582,319,1666][18][B,I,][Times New Roman]] [[300,1668,319,1752][18][B,I,][Times New Roman]] [[300,1754,319,1838][18][B,I,][Times New Roman]] [[300,1840,319,1924][18][B,I,][Times New Roman]] [[300,1927,319,2011][18][B,I,][Times New Roman]] [[900,1927,919,2011][18][B,I,][Times New Roman]] (TXDO2SSRUWXQLW\(PSOR\HU ZVEHQJFRP 3DFNHW3J 'D '<ΘZ:WƌŽƉĞƌƚǇ ϲͬϮͬϭϱ WĂŐĞϯ [[300,419,319,503][18][B,I,][Times New Roman]] &ŝŐƵƌĞϭ ^ĐŚŽĞŶĨĞůĚĞƌtĞƚůĂŶĚĂŶŬ>ŽĐĂƚŝŽŶ (TXDO2SSRUWXQLW\(PSOR\HU ZVEHQJFRP 3DFNHW3J 'D '<ΘZ:WƌŽƉĞƌƚǇ ϲͬϮͬϭϱ WĂŐĞϰ ƉƉĞŶĚŝǆ ZĞǀŝƐĞĚtĞƚůĂŶĚZĞƉůĂĐĞŵĞŶƚŽĨDEt tĞƚůĂŶĚWĞƌŵŝƚƉƉůŝĐĂƚŝŽŶ (TXDO2SSRUWXQLW\(PSOR\HU ZVEHQJFRP 3DFNHW3J 'D WƌŽũĞĐƚEĂŵĞĂŶĚͬŽƌEƵŵďĞƌ͗'<ΘZ:WƌŽƉĞƌƚǇ ƚƚĂĐŚŵĞŶƚ ZĞƉůĂĐĞŵĞŶƚͬŽŵƉĞŶƐĂƚŽƌǇDŝƚŝŐĂƚŝŽŶ ŽŵƉůĞƚĞƚŚŝƐƉĂƌƚ ŝĨ ǇŽƵƌĂƉƉůŝĐĂƚŝŽŶŝŶǀŽůǀĞƐǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚͬĐŽŵƉĞŶƐĂƚŽƌǇŵŝƚŝŐĂƚŝŽŶŶŽƚĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞůŽĐĂůƌŽĂĚ ǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚƉƌŽŐƌĂŵ͘ƉƉůŝĐĂŶƚƐƐŚŽƵůĚĐŽŶƐƵůƚŽƌƉƐŵŝƚŝŐĂƚŝŽŶŐƵŝĚĞůŝŶĞƐĂŶĚtƌƵůĞƐĨŽƌƌĞƋƵŝƌĞŵĞŶƚƐ͘ ZĞƉůĂĐĞŵĞŶƚͬŽŵƉĞŶƐĂƚŽƌǇDŝƚŝŐĂƚŝŽŶǀŝĂtĞƚůĂŶĚĂŶŬŝŶŐ ͘ŽŵƉůĞƚĞƚŚŝƐƐĞĐƚŝŽŶŝĨǇŽƵĂƌĞƉƌŽƉŽƐŝŶŐƚŽƵƐĞĐƌĞĚŝƚƐĨƌŽŵĂŶ ĞǆŝƐƚŝŶŐǁĞƚůĂŶĚďĂŶŬ;ǁŝƚŚĂŶĂĐĐŽƵŶƚŶƵŵďĞƌŝŶƚŚĞ^ƚĂƚĞǁĞƚůĂŶĚďĂŶŬŝŶŐƐǇƐƚĞŵͿĨŽƌĂůůŽƌƉĂƌƚŽĨǇŽƵƌ ƌĞƉůĂĐĞŵĞŶƚͬĐŽŵƉĞŶƐĂƚŽƌǇŵŝƚŝŐĂƚŝŽŶƌĞƋƵŝƌĞŵĞŶƚƐ͘ ĂŶŬ tĞƚůĂŶĚĂŶŬDĂũŽƌƌĞĚŝƚdǇƉĞ ŽƵŶƚǇ^ĞƌǀŝĐĞEƵŵďĞƌŽĨƌĞĚŝƚƐ ĐĐŽƵŶƚηtĂƚĞƌƐŚĞĚη ;ŝĨĂƉƉůŝĐĂďůĞͿ ƌĞĂη ϭϱϵϮKůŵƐƚĞĚϰϭϴϮϬ͘ϭϲ ƉƉůŝĐĂŶƚƐƐŚŽƵůĚĂƚƚĂĐŚĚŽĐƵŵĞŶƚĂƚŝŽŶŝŶĚŝĐĂƚŝŶŐƚŚĂƚƚŚĞǇŚĂǀĞĐŽŶƚĂĐƚĞĚƚŚĞǁĞƚůĂŶĚďĂŶŬĂĐĐŽƵŶƚŽǁŶĞƌĂŶĚƌĞĂĐŚĞĚĂƚ ůĞĂƐƚĂƚĞŶƚĂƚŝǀĞĂŐƌĞĞŵĞŶƚƚŽƵƚŝůŝǌĞƚŚĞŝĚĞŶƚŝĨŝĞĚĐƌĞĚŝƚƐĨŽƌƚŚĞƉƌŽũĞĐƚ͘dŚŝƐĚŽĐƵŵĞŶƚĂƚŝŽŶĐŽƵůĚďĞĂƐŝŐŶĞĚƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚ͕ƐŝŐŶĞĚĂƉƉůŝĐĂƚŝŽŶĨŽƌǁŝƚŚĚƌĂǁĂůŽĨĐƌĞĚŝƚƐŽƌƐŽŵĞŽƚŚĞƌĐŽƌƌĞƐƉŽŶĚĞŶĐĞŝŶĚŝĐĂƚŝŶŐĂŶĂŐƌĞĞŵĞŶƚďĞƚǁĞĞŶƚŚĞ ,ŽǁĞǀĞƌ͕ĂƉƉůŝĐĂŶƚƐĂƌĞĂĚǀŝƐĞĚŶŽƚƚŽĞŶƚĞƌŝŶƚŽĂďŝŶĚŝŶŐĂŐƌĞĞŵĞŶƚƚŽƉƵƌĐŚĂƐĞĐƌĞĚŝƚƐƵŶƚŝůƚŚĞ ĂƉƉůŝĐĂŶƚĂŶĚƚŚĞďĂŶŬŽǁŶĞƌ͘ ŵŝƚŝŐĂƚŝŽŶƉůĂŶŝƐĂƉƉƌŽǀĞĚďǇƚŚĞŽƌƉƐĂŶĚ>'h͘ WƌŽũĞĐƚ Ͳ^ƉĞĐŝĨŝĐZĞƉůĂĐĞŵĞŶƚͬWĞƌŵŝƚƚĞĞZĞƐƉŽŶƐŝďůĞDŝƚŝŐĂƚŝŽŶ ͘ŽŵƉůĞƚĞƚŚŝƐƐĞĐƚŝŽŶŝĨǇŽƵĂƌĞƉƌŽƉŽƐŝŶŐƚŽƉƵƌƐƵĞĂĐƚŝŽŶƐ ;ƌĞƐƚŽƌĂƚŝŽŶ͕ĐƌĞĂƚŝŽŶ͕ƉƌĞƐĞƌǀĂƚŝŽŶ͕ĞƚĐ͘ͿƚŽŐĞŶĞƌĂƚĞǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚͬĐŽŵƉĞŶƐĂƚŽƌǇŵŝƚŝŐĂƚŝŽŶĐƌĞĚŝƚƐĨŽƌƚŚŝƐƉƌŽƉŽƐĞĚ ƉƌŽũĞĐƚ͘ ŽƌƉƐDŝƚŝŐĂƚŝŽŶĂŶŬ tĐƚŝŽŶůŝŐŝďůĞƌĞĚŝƚйƌĞĚŝƚƐDĂũŽƌ ŽŵƉĞŶƐĂƚŝŽŶĐƌĞƐŽƵŶƚǇ^ĞƌǀŝĐĞ ϭϯ ĨŽƌƌĞĚŝƚZĞƋƵĞƐƚĞĚŶƚŝĐŝƉĂƚĞĚtĂƚĞƌƐŚĞĚη Ϯ dĞĐŚŶŝƋƵĞƌĞĂη ϭ ZĞĨĞƌƚŽƚŚĞŶĂŵĞĂŶĚƐƵďƉĂƌƚŶƵŵďĞƌŝŶDEZƵůĞϴϰϮϬ͘ϬϱϮϲ͘ Ϯ ^ƚ͘WĂƵůŝƐƚƌŝĐƚWŽůŝĐǇĨŽƌtĞƚůĂŶĚŽŵƉĞŶƐĂƚŽƌǇDŝƚŝŐĂƚŝŽŶŝŶDŝŶŶĞƐŽƚĂ ZĞĨĞƌƚŽƚŚĞƚĞĐŚŶŝƋƵĞůŝƐƚĞĚŝŶ͘ ϯ /ĨtĂŶĚŽƌƉƐĐƌĞĚŝƚŝŶŐĚŝĨĨĞƌƐ͕ƚŚĞŶĞŶƚĞƌďŽƚŚŶƵŵďĞƌƐĂŶĚĚŝƐƚŝŶŐƵŝƐŚǁŚŝĐŚŝƐŽƌƉƐĂŶĚǁŚŝĐŚŝƐt͘ ǆƉůĂŝŶŚŽǁĞĂĐŚƉƌŽƉŽƐĞĚĂĐƚŝŽŶŽƌƚĞĐŚŶŝƋƵĞǁŝůůďĞĐŽŵƉůĞƚĞĚ;Ğ͘Ő͘ǁĞƚůĂŶĚŚǇĚƌŽůŽŐǇǁŝůůďĞƌĞƐƚŽƌĞĚďǇďƌĞĂŬŝŶŐƚŚĞƚŝůĞ͙͙Ϳ ĂŶĚŚŽǁƚŚĞƉƌŽƉŽƐĂůŵĞĞƚƐƚŚĞĐƌĞĚŝƚŝŶŐĐƌŝƚĞƌŝĂĂƐƐŽĐŝĂƚĞĚǁŝƚŚŝƚ͘ƉƉůŝĐĂŶƚƐƐŚŽƵůĚƌĞĨĞƌƚŽƚŚĞŽƌƉƐŵŝƚŝŐĂƚŝŽŶƉŽůŝĐǇ ůĂŶŐƵĂŐĞ͕tƌƵůĞůĂŶŐƵĂŐĞ͕ĂŶĚĂůůĂƐƐŽĐŝĂƚĞĚŽƌƉƐĂŶĚtŐƵŝĚĂŶĐĞƌĞůĂƚĞĚƚŽƚŚĞĂĐƚŝŽŶŽƌƚĞĐŚŶŝƋƵĞ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ ƚƚĂĐŚĂƐŝƚĞůŽĐĂƚŝŽŶŵĂƉ͕ƐŽŝůƐŵĂƉ͕ƌĞĐĞŶƚĂĞƌŝĂůƉŚŽƚŽŐƌĂƉŚ͕ĂŶĚĂŶǇŽƚŚĞƌŵĂƉƐƚŽƐŚŽǁƚŚĞůŽĐĂƚŝŽŶĂŶĚŽƚŚĞƌƌĞůĞǀĂŶƚ ĨĞĂƚƵƌĞƐŽĨĞĂĐŚǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚͬŵŝƚŝŐĂƚŝŽŶƐŝƚĞ͘ŝƐĐƵƐƐŝŶĚĞƚĂŝůĞǆŝƐƚŝŶŐǀĞŐĞƚĂƚŝŽŶ͕ĞǆŝƐƚŝŶŐůĂŶĚƐĐĂƉĞĨĞĂƚƵƌĞƐ͕ůĂŶĚƵƐĞ ;ŽŶĂŶĚƐƵƌƌŽƵŶĚŝŶŐƚŚĞƐŝƚĞͿ͕ĞǆŝƐƚŝŶŐƐŽŝůƐ͕ĚƌĂŝŶĂŐĞƐǇƐƚĞŵƐ;ŝĨƉƌĞƐĞŶƚͿ͕ĂŶĚǁĂƚĞƌƐŽƵƌĐĞƐĂŶĚŵŽǀĞŵĞŶƚ͘/ŶĐůƵĚĞĂ ƚŽƉŽŐƌĂƉŚŝĐŵĂƉƐŚŽǁŝŶŐŬĞǇĨĞĂƚƵƌĞƐƌĞůĂƚĞĚƚŽŚǇĚƌŽůŽŐǇĂŶĚǁĂƚĞƌĨůŽǁ;ŝŶůĞƚƐ͕ŽƵƚůĞƚƐ͕ĚŝƚĐŚĞƐ͕ƉƵŵƉƐ͕ĞƚĐ͘Ϳ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ DŝŶŶĞƐŽƚĂ/ŶƚĞƌĂŐĞŶĐǇtĂƚĞƌZĞƐŽƵƌĐĞƉƉůŝĐĂƚŝŽŶ&Žƌŵ&ĞďƌƵĂƌǇϮϬϭϰWĂŐĞϳŽĨϵ 3DFNHW3J 'D '<ΘZ:WƌŽƉĞƌƚǇ ϲͬϮͬϭϱ WĂŐĞϱ ƉƉĞŶĚŝǆ DEttĞƚůĂŶĚĂŶŬŝŶŐƌĞĚŝƚWƵƌĐŚĂƐĞŐƌĞĞŵĞŶƚ (TXDO2SSRUWXQLW\(PSOR\HU ZVEHQJFRP 3DFNHW3J 'D [[180,104,2289,161][12][B,I,][Times New Roman]]7KHIROORZLQJLVDVDPSOHRIDSRVVLEOH3XUFKDVH$JUHHPHQWIRUWKHVDOHRI:HWODQG%DQNLQJ&UHGLWV [[180,162,2314,219][12][B,I,][Times New Roman]]7KLV3XUFKDVH$JUHHPHQWGRHVQRWQHFHVVDULO\FRYHUDOORIWKHLVVXHVWKDWZRXOGEHLPSRUWDQWWR6HOOHUV [[180,219,1234,276][12][B,I,][Times New Roman]]DQG%X\HUVQRUGRHVLWDGGUHVVWKHWHUPVWKDWZRXO [[1233,219,2230,276][12][B,I,][Times New Roman]]GEHDSSURSULDWHIRUDQ\SDUWLFXODUWUDQVDFWLRQ [[179,277,2365,334][12][B,I,][Times New Roman]]6HOOHUVDQG%X\HUVVKRXOGREWDLQWKHVHUYLFHVRITXDOLILHGOHJDOFRXQVHOWRDGDSWWKLV3XUFKDVH$JUHHPHQW [[180,335,747,392][12][B,I,][Times New Roman]]WRPHHWWKHLUVSHFLILFQHHGV [[748,343,759,390][10][B,I,][Times New Roman]] [[180,405,192,462][12][B,I,][Times New Roman]] 385&+$6($*5((0(17 )25 :(7/$1'%$1.,1*&5(',76 7+,6$*5((0(17LVPDGHWKLVBBGD\RIBBBEHWZHHQ 5DQGDOO6FKRHQIHOGHU 6HOOHU DQG*.DQG5-3URSHUWLHV//&±*HRUJLD7RRJRRG %X\HU [[180,894,192,951][12][B,I,][Times New Roman]] 6HOOHUDJUHHVWRVHOOWR%X\HUDQG%X\HUDJUHHVWREX\IURP6HOOHUWKHZHWODQGEDQNLQJFUHGLWV &UHGLWV OLVWHGEHORZ &5(',7672%(62/' &UHGLW$FUHVRU:HWODQG3ODQW&RPPXQLW\7\SH&RVWSHU 6WDWH)HH)HH 6XE6T)W&LUF$FUHRU6T (VWLPDWH *URXSï7\SHð)RRW RU,,)UHVK :HW 0HDGRZ6T)W $ % & ' ( 7RWDOV &KHFNKHUHLIDGGLWLRQDOFUHGLWVXEJURXSVDUHSDUWRIWKLVDFFRXQWDQGDUHOLVWHGRQDQDWWDFKPHQWWRWKLVGRFXPHQW ï$VHSDUDWHFUHGLWVXEJURXSVKDOOEHHVWDEOLVKHGIRUHDFKZHWODQGRUZHWODQGDUHDWKDWKDVGLIIHUHQWZHWODQGFKDUDFWHULVWLFV ð&LUFXODUW\SHV/HUGHHSPDUVKVKDOORZPDUVKVHGJHPHDGRZIUHVKPHDGRZZHWWR ZHWPHVLFSUDLULHFDOFDUHRXVIHQRSHQERJRUFRQLIHURXVERJVKUXEFDUUDOGHUWKLFNHWKDUGZRRGVZDPSRUFRQLIHURXV 6HH VZDPSIORRGSODLQIRUHVWVHDVRQDOO\IORRGHGEDVLQ[[1118,2237,2123,2284][10][B,I,][Times New Roman]]:HWODQG3ODQWVDQG3ODQW&RPPXQLWLHVRI0LQQHVRWDDQG DVPRGLILHGE\WKH%RDUGRI:DWHUDQG6RLO5HVRXUFHV8QLWHG6WDWHV$UP\&RUSV [[180,2285,803,2332][10][B,I,][Times New Roman]]:LVFRQVLQ (JJHUVDQG5HHG 'D %X\HUZLOOSD\6HOOHUDWRWDORIBBIRUWKH&UHGLWVDVIROORZV D BBBDVHDUQHVWPRQH\WREHSDLGZKHQWKLV$JUHHPHQWLVVLJQHGDQG E 7KHEDODQFHRIBBBBBWREHSDLGRQWKH&ORVLQJ'DWHOLVWHGEHORZ >@%X\HU>@6HOOHUDJUHHVWRSD\WRDZLWKGUDZDOIHHRIBBWRWKH6WDWHRI0LQQHVRWD EDVHGRQRIWKHDJUHHGWRSXUFKDVHSULFH$WWKH&ORVLQJ'DWH>@%X\HU>@6HOOHUZLOOH[HFXWHD FKHFNPDGHRXWIRUWKLVDPRXQWSD\DEOHWRWKH%RDUGRI:DWHUDQG6RLO5HVRXUFHV 7KHFORVLQJRIWKHSXUFKDVHDQGVDOHVKDOORFFXURQRQFHILQDOSHUPLWVKDYHEHHQUHFHLYHGIURPWKH &LW\RI5RFKHVWHU/*8 01:&$ DQGWKH86$UP\&RUSRI(QJLQHHUV7KH&ORVLQJ'DWHDQGORFDWLRQ PD\EHFKDQJHGE\ZULWWHQFRQVHQWRIERWKSDUWLHV8SRQSD\PHQWRIWKHEDODQFHRIWKHSXUFKDVHSULFH 6HOOHUZLOOVLJQDIXOO\H[HFXWHG$SSOLFDWLRQIRU:LWKGUDZDORIWKH&UHGLWVLQWKHIRUPVSHFLILHG%:65 SURYLGHDFRS\RIWKH$SSOLFDWLRQIRU:LWKGUDZDOWRWKH%X\HUDQGIRUZDUGWKHVDPHWRWKH%:65DORQJ ZLWKWKHFKHFNIRUWKHZLWKGUDZDOIHH %X\HUKDVDSSOLHGRUZLOODSSO\WR&LW\RI5RFKHVWHU±-RKQ+DUIRUG /RFDO*RYHUQPHQW8QLW /*8 RURWKHUUHJXODWRU\DXWKRULW\ IRUDSSURYDORIDUHSODFHPHQWSODQXWLOL]LQJWKH&UHGLWVDVWKHPHDQVRI UHSODFLQJLPSDFWHGZHWODQGV,IWKH/*8KDVQRWDSSURYHGWKH%X\HU¶VDSSOLFDWLRQIRUDUHSODFHPHQWSODQ XWLOL]LQJWKH&UHGLWVE\WKH&ORVLQJ'DWHDQGQRSRVWSRQHPHQWRIWKH&ORVLQJ'DWHKDVEHHQDJUHHGWRE\ %X\HUDQG6HOOHULQZULWLQJWKHQHLWKHU%X\HURU6HOOHUPD\FDQFHOWKLV$JUHHPHQWE\JLYLQJZULWWHQQRWLFH WRWKHRWKHU,QWKLVFDVH6HOOHUVKDOOUHWXUQ%X\HU¶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͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰsŝĐŝŶŝƚǇDĂƉ͘ŵǆĚĂƚĞ͗dŚƵƌƐĚĂǇ͕&ĞďƌƵĂƌǇϭϵ͕ϮϬϭϱ 'F ),*85( :HWODQG%RXQGDU\([KLELW :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 'F ),*85( 2OPVWHG&RXQW\6RLO6XUYH\0DS :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F ϰϲϱ 3URMHFW/RFDWLRQ ϭϬϯϵ t ϰϲϱ Ϯϳ ϰϴϱ Ϯϱ Ϯϴϯ ϰϴϳ Ϯϴϯ Ϯϳ 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰKůŵƐƚĞĚŽƵŶƚǇ^Žŝů^ƵƌǀĞǇ͘ŵǆĚĂƚĞ͗dŚƵƌƐĚĂǇ͕&ĞďƌƵĂƌǇϭϵ͕ϮϬϭϱ 'F ),*85( 2OPVWHG&RXQW\*HRORJLF$WODV :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ 6:1:6715: 52&+(67(50,11(627$ 'F ),*85( 1DWLRQDO:HWODQGV,QYHQWRU\ :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰEt/DĂƉ͘ŵǆĚĂƚĞ͗&ƌŝĚĂǇ͕&ĞďƌƵĂƌǇϮϬ͕ϮϬϭϱ 'F ),*85( 3XEOLF:DWHUV,QYHQWRU\ :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ3XEOLF:DWHUV<5)ORRGSODLQ 0LOH5DGLXV,PSDLUHG:DWHUV<5)ORRGSODLQ [[463,1718,573,1756][8][,I,][Arial]]*HRUJH 6:1:6715: 52&+(67(50,11(627$ 'F ),*85( 'F 3URMHFW/RFDWLRQ 6XEZDWHUVKHG%RXQGDU\ Ǧ ͳʹǦͲ͹ͲͶͲͲͲͶͲͳͲͺ 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰ^ƵďǁĂƚĞƌƐŚĞĚƐ͘ŵǆĚĂƚĞ͗&ƌŝĚĂǇ͕&ĞďƌƵĂƌǇϮϳ͕ϮϬϭϱ 'F ),*85( 86*67RSRJUDSKLF0DS :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰdŽƉŽŐƌĂƉŚǇ͘ŵǆĚĂƚĞ͗&ƌŝĚĂǇ͕&ĞďƌƵĂƌǇϮϳ͕ϮϬϭϱ 'F ),*85( $GMDFHQW/DQGRZQHUV :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ 2OPVWHG3DUFHOV 'F ),*85( $HULDO3KRWR :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰϭϵϵϭĞƌŝĂůWŚŽƚŽ͘ŵǆĚĂƚĞ͗dŚƵƌƐĚĂǇ͕&ĞďƌƵĂƌǇϭϵ͕ϮϬϭϱ 'F ),*85( $HULDO3KRWR :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰϭϵϵϭĞƌŝĂůWŚŽƚŽ͘ŵǆĚĂƚĞ͗dƵĞƐĚĂǇ͕DĂƌĐŚϬϯ͕ϮϬϭϱ 'F ),*85( $HULDO3KRWR :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3URMHFW/RFDWLRQ 6:1:6715: 52&+(67(50,11(627$ )HHW 3DFNHW3J <͗ͰϬϮϴϯϮͲϬϬϬͰ'/^ͰDĂƉƐͰϮϬϬϯĞƌŝĂůWŚŽƚŽ͘ŵǆĚĂƚĞ͗dŚƵƌƐĚĂǇ͕&ĞďƌƵĂƌǇϭϵ͕ϮϬϭϱ 'F ),*85( $YRLGDQFH$OWHUQDWLYH :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F ),*85( 0LQLPL]DWLRQ3ODQ :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F ),*85( 2II6LWH'LUHFW:HWODQG5HSODFHPHQW6LWH :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J Ǣ ͷͲ̵Ǣ Ǧ 'F ),*85( 2II6LWH'LUHFW:HWODQG5HSODFHPHQW3ODQWLQJ3ODQ :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J ʹȌ ȋ 'F ),*85( @ ? @ ? @ ? @ ? @ ? @ ? 5HVWRUDWLRQRI([LVWLQJ:HWODQG$FUHV 8SODQG%XIIHU (159 &UHGLW 'F K&&^/d/Zdtd>EZW>DEd^/d EEh>td>EDKE/dKZ/E'ZWKZd WƌŽũĞĐƚƚǇƉĞ͗yWƌŽũĞĐƚ^ƉĞĐŝĨŝĐtĞƚůĂŶĚĂŶŬŝŶŐ DŽŶŝƚŽƌŝŶŐǇĞĂƌ͗ϮϬϭϱͲϮϬϮϬŐƌŽǁŝŶŐƐĞĂƐŽŶ WZK:d/E&KZDd/KE >ĂŶĚŽǁŶĞƌEĂŵĞ͗^ŝƚĞ/η͗ ƌǇĐĞĞŽŽŬ ƉƉůŝĐĂŶƚ;ŝĨĚŝĨĨĞƌĞŶƚĨƌŽŵůĂŶĚŽǁŶĞƌͿ͗ĐĐŽƵŶƚη͗ WƌŽũĞĐƚEĂŵĞ͗ĂŶŬƌĞĂ;ĂĐƌĞƐͿ͗h^η͗ ĞŽŽŬtĞƚůĂŶĚĂŶŬΕϰϴĂĐƌĞƐ ŽƵŶƚǇ͗>ĞŐĂůĞƐĐƌŝƉƚŝŽŶ͗^ĂůĞŵdŽǁŶƐŚŝƉ KůŵƐƚĞĚ ^Ь^ĞĐƚŝŽŶϭϬdϭϬϲEͲZϭϱt͘ ZĞƉŽƌƚƉƌĞƉĂƌĞĚďǇ͗ĂƚĞ͗ t^ΘƐƐŽĐŝĂƚĞƐ͕/ŶĐ͘ϯͬϲͬϭϱ WZK:dKsZs/t ZĞƉůĂĐĞŵĞŶƚǁĞƚůĂŶĚŐŽĂůƐŝŶƚĞƌŵƐŽĨƐŝǌĞ͕ƌĞƉůĂĐĞŵĞŶƚĐƌĞĚŝƚĂŵŽƵŶƚ͕ǁĞƚůĂŶĚƚǇƉĞƐ͕ŚǇĚƌŽůŽŐǇ͕ĂŶĚ ǁĞƚůĂŶĚĨƵŶĐƚŝŽŶƐ͘ DE'DEd,/^dKZz ĂƚĞƐƌĞƐƚŽƌĂƚŝŽŶĂĐƚŝǀŝƚŝĞƐĐŽŵŵĞŶĐĞĚĂŶĚͬŽƌǁĞƌĞĐŽŵƉůĞƚĞĚ͘/ŶĐůƵĚĞĂŵĞŶĚŵĞŶƚƐƚŽƚŚĞƉůĂŶ͘ ĂƚĞĐƚŝǀŝƚǇ Dd,K^ tŚĂƚǁĂƐŵŽŶŝƚŽƌĞĚ;ĞǆĂŵƉůĞ͗ǀĞŐĞƚĂƚŝŽŶ͕ŚǇĚƌŽůŽŐǇͿ͕ǁŚĞŶĂŶĚŚŽǁ͘ DEŽĂƌĚŽĨtĂƚĞƌĂŶĚ^ŽŝůZĞƐŽƵƌĐĞƐ΀ǇĞĂƌŽĨƌĞƉŽƌƚ΁ ŶŶƵĂůDŽŶŝƚŽƌŝŶŐZĞƉŽƌƚʹ΀ƐŝƚĞŶĂŵĞ΁ 3DFNHW3J 'F Z^h>d^ ^ƵŵŵĂƌǇŽĨŽďƐĞƌǀĂƚŝŽŶƐŽĨǀĞŐĞƚĂƚŝŽŶ;ƉůĂŶƚĐŽŵŵƵŶŝƚŝĞƐ͕ĚŽŵŝŶĂŶƚƐƉĞĐŝĞƐͿĂŶĚŚǇĚƌŽůŽŐǇ ŵĞĂƐƵƌĞŵĞŶƚƐ͘ZĞƉŽƌƚĐŽŶĚŝƚŝŽŶŽĨǁĂƚĞƌĐŽŶƚƌŽůƐƚƌƵĐƚƵƌĞƐ͘ sĞŐĞƚĂƚŝǀĞĐŽŵŵƵŶŝƚŝĞƐƉůĂŶŶĞĚĂŶĚŽďƐĞƌǀĞĚ͗ ŽŵŵƵŶŝƚǇ ĐƌĞƐWůĂŶŶĞĚĐƌĞƐKďƐĞƌǀĞĚ &ƌĞƐŚtĞƚDĞĂĚŽǁϬ͘ϭϲ dŽƚĂůtĞƚůĂŶĚϬ͘ϭϲ dŽƚĂůhƉůĂŶĚ dŽƚĂůϬ͘ϭϲ ZĞǀŝĞǁŽĨWĞƌĨŽƌŵĂŶĐĞ^ƚĂŶĚĂƌĚƐ͕ĞǆƉĞĐƚĞĚ;ͿĂŶĚŽďƐĞƌǀĞĚ;KͿ͗ dŚĞƐĞĐŽŶĚŝƚŝŽŶƐĂŶĚƐƚĂŶĚĂƌĚƐƉƌŽǀŝĚĞĚĂƐĂŶĞǆĂŵƉůĞ͘ĐƚƵĂůƐƚĂŶĚĂƌĚƐŵĂǇǀĂƌǇďĂƐĞĚŽŶĨƵŶĐƚŝŽŶĂů ŐŽĂůƐĂŶĚƐŝƚĞĐŽŶĚŝƚŝŽŶƐ͘ WĞƌĨŽƌŵĂŶĐĞ^ƚĂŶĚĂƌĚ zĞĂƌ͗ϭϮϯϰϱ ŽŵŵƵŶŝƚǇŽŶĚŝƚŝŽŶKKKKK &ƌĞƐŚtĞƚEĂƚŝǀĞƐƉĞĐŝĞƐ;ηͿͲϴϴϴϴ DĞĂĚŽǁ &ƌĞƐŚtĞƚEĂƚŝǀĞƐƉĞĐŝĞƐĐŽǀĞƌͲͲϱϬϱϬϳϱ DĞĂĚŽǁ;йͿ ůůƌĞĂƐЬĂĐŝŶƐŝǌĞϬϬϬϬϬ ǁŝƚŚϱϬйĂƌĞĂůĐŽǀĞƌ ŽĨŶŽŶͲŶĂƚŝǀĞƐ;ηͿ ůů/ŶǀĂƐŝǀĞƉůĂŶƚĐŽǀĞƌͲϭϬϭϬϭϬϭϬ ;йͿ /^h^^/KE ŽŵƉĂƌĞƚŚĞĐƵƌƌĞŶƚƌĞƉůĂĐĞŵĞŶƚǁĞƚůĂŶĚƚŽĨƵŶĐƚŝŽŶĂůŐŽĂůƐĂŶĚƉĞƌĨŽƌŵĂŶĐĞƐƚĂŶĚĂƌĚƐ͖ĚŝƐĐƵƐƐ ƉƌŽŐƌĞƐƐƚŽĚĂƚĞ͘ŝƐĐƵƐƐĨŝĞůĚĐŽŶĚŝƚŝŽŶƐĚƵƌŝŶŐƚŚĞŽďƐĞƌǀĂƚŝŽŶƉĞƌŝŽĚƐ;ŝ͘Ğ͘ĚƌŽƵŐŚƚ͕ĨůŽŽĚŝŶŐ͕ŶŽƌŵĂů͕ ĞƚĐ͘Ϳ͘:ƵƐƚŝĨǇĂŶǇĐŚĂŶŐĞƐƚŽƚŚĞĂƉƉƌŽǀĞĚĚĞƐŝŐŶƉůĂŶ;ĐŽŶƐƚƌƵĐƚŝŽŶ͕ǀĞŐĞƚĂƚŝŽŶĞƐƚĂďůŝƐŚŵĞŶƚŽƌ ŵĂŶĂŐĞŵĞŶƚͿ͘ DEŽĂƌĚŽĨtĂƚĞƌĂŶĚ^ŽŝůZĞƐŽƵƌĐĞƐ΀ǇĞĂƌŽĨƌĞƉŽƌƚ΁ ŶŶƵĂůDŽŶŝƚŽƌŝŶŐZĞƉŽƌƚʹ΀ƐŝƚĞŶĂŵĞ΁ 3DFNHW3J 'F &hdhZDE'DEd ĐƚŝǀŝƚŝĞƐƉůĂŶŶĞĚĨŽƌƚŚĞƵƉĐŽŵŝŶŐǇĞĂƌĂŶĚŝŶĐůƵĚŝŶŐĂŶǇĂĚĚŝƚŝŽŶĂůĐŽƌƌĞĐƚŝǀĞŽƌƌĞŵĞĚŝĂůĂĐƚŝŽŶ͘ &ŝŐƵƌĞƐĂŶĚdĂďůĞƐ x WůĂŶƚ^ƉĞĐŝĞƐKďƐĞƌǀĞĚ;ůŝƐƚĞĚƐĞƉĂƌĂƚĞůǇĨŽƌĞĂĐŚĐŽŵŵƵŶŝƚǇ͕ǁŝƚŚйĐŽǀĞƌĨƌŽŵƌĞƉƌĞƐĞŶƚĂƚŝǀĞ ƉůŽƚƐŽƌƚƌĂŶƐĞĐƚƐĂŶĚĨŽƌƚŚĞĐŽŵŵƵŶŝƚǇŽǀĞƌĂůů͖ŝŶĐůƵĚĞƵƉůĂŶĚďƵĨĨĞƌƐͿ x WƌŽũĞĐƚ>ŽĐĂƚŝŽŶDĂƉ x WůĂŶƚŽŵŵƵŶŝƚǇDĂƉ;ŝŶĐůƵĚŝŶŐĂƌĞĂƐŶĞĞĚŝŶŐŵĂŝŶƚĞŶĂŶĐĞ͗ƉĂƚĐŚĞƐŽĨŝŶǀĂƐŝǀĞƉůĂŶƚƐ͕ǁĞĞĚƐ͕Žƌ ďĂƌĞƐŽŝů͖ĞƐƚŝŵĂƚĞĂĐƌĞƐŽƌƐƋƵĂƌĞĨŽŽƚĂŐĞͿ͖ƐŚŽǁƐĂŵƉůŝŶŐƉůŽƚƐŽƌƚƌĂŶƐĞĐƚůŽĐĂƚŝŽŶƐ͘ x WŚŽƚŽŽĐƵŵĞŶƚĂƚŝŽŶŽĨĂůůƌĞƉůĂĐĞŵĞŶƚĂƌĞĂƐ x WŚŽƚŽZĞĨĞƌĞŶĐĞWŽŝŶƚDĂƉ x DĂƉŽĨ,ǇĚƌŽůŽŐŝĐDŽŶŝƚŽƌŝŶŐ>ŽĐĂƚŝŽŶƐ;ĞǆĂŵƉůĞ͗ŵŽŶŝƚŽƌŝŶŐǁĞůůƐ͕ƐƚĂĨĨŐĂŐĞƐͿ x ,ǇĚƌŽůŽŐŝĐŵĞĂƐƵƌĞŵĞŶƚƐ;ƐĞĂƐŽŶĂůǁĂƚĞƌůĞǀĞůĞůĞǀĂƚŝŽŶƐŽƌĂƌĞĂůĐŽǀĞƌĂŐĞŵĞĂƐƵƌĞŵĞŶƚƐĚƵƌŝŶŐ ƚŚĞŐƌŽǁŝŶŐƐĞĂƐŽŶ͖ŐƌĂƉŚƐĂƌĞƉƌĞĨĞƌƌĞĚͿ ƚƚĂĐŚŵĞŶƚƐ ƚƚĂĐŚŵĞŶƚƐŵĂǇŽŶůǇďĞŶĞĐĞƐƐĂƌǇƚŽŝŶĐůƵĚĞŝŶŽŶĞŽĨƚŚĞĂŶŶƵĂůŵŽŶŝƚŽƌŝŶŐƌĞƉŽƌƚƐ͘ x DŽŶŝƚŽƌŝŶŐtĞůůŽŶƐƚƌƵĐƚŝŽŶ>ŽŐƐ͗ĚĞƐĐƌŝƉƚŝŽŶŽĨƐŽŝůƐĂŶĚŵŽŶŝƚŽƌŝŶŐǁĞůůĐŽŶƐƚƌƵĐƚŝŽŶĚĞƚĂŝůƐ ŝŶĐůƵĚŝŶŐĚĞƉƚŚ͕ĚŝĂŵĞƚĞƌ͕ƐĐƌĞĞŶĞĚŝŶƚĞƌǀĂů͕ŚŽǁĐŽŶƐƚƌƵĐƚĞĚ͕ĞƚĐ͘ x ƐͲďƵŝůƚƉůĂŶƐ DEŽĂƌĚŽĨtĂƚĞƌĂŶĚ^ŽŝůZĞƐŽƵƌĐĞƐ΀ǇĞĂƌŽĨƌĞƉŽƌƚ΁ ŶŶƵĂůDŽŶŝƚŽƌŝŶŐZĞƉŽƌƚʹ΀ƐŝƚĞŶĂŵĞ΁ 3DFNHW3J 'F dĂďůĞϭ͗WůĂŶƚƐƉĞĐŝĞƐŽďƐĞƌǀĞĚĂƚ΀ƐŝƚĞŶĂŵĞ΁ŝŶ΀ŶĂŵĞ΁ŽƵŶƚǇ͕΀ŵŽŶƚŚ͕ǇĞĂƌ΁͘ ϭĂͿĞŽŽŬ^ŝƚĞWůĂŶƚ^ƉĞĐŝĞƐ йĂƌĞĂůĐŽǀĞƌ ŽŵŵŽŶŶĂŵĞ;^ĐŝĞŶƚŝĨŝĐŶĂŵĞͿ /ŶĚŝĐĂƚŽƌEĂƚŝǀĞ/ŶǀĂƐŝǀĞ^ƚƌĂƚĂWůŽƚ йĂƌĞĂůĐŽǀĞƌŝŶǀĂƐŝǀĞƐ йĂƌĞĂůĐŽǀĞƌŶĂƚŝǀĞƐ ^ƚƌĂƚĂ͗s;ǁŽŽĚǇǀŝŶĞͿ͕,;ŚĞƌďůĂǇĞƌͿ͕^;ƐĂƉůŝŶŐƐĂŶĚƐŚƌƵďƐͿ͕d;ƚƌĞĞͿ 3DFNHW3J 'F $33(1',;% 6LWH3KRWRV :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 3KRWR 9LHZRIQRUWKHUQERXQGDULHVRI:HWODQG 3KRWR 9LHZRIVRXWKFHQWUDOSRUWLRQRI:HWODQG 3DFNHW3J 'F $33(1',;& &2('DWD)RUPV :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F :(7/$1''(7(50,1$7,21'$7$)2500LGZHVW5HJLRQ 3URMHFW6LWH*. 5-3URSHUW\&LW\&RXQW\5RFKHVWHU2OPVWHG6DPSOLQJ'DWHGDWDLQ5HPDUNVRURQD VHSDUDWHVKHHW 3UREOHPDWLFK\GURSK\WLFYHJHWDWLRQ H[SODLQ 7RWDO&RYHU :RRG\YLQHVWUDWXP 3ORWVL]H ,QGLFDWRUVRIK\GULFVRLODQGZHWODQGK\GURORJ\PXVWEH SUHVHQWXQOHVVGLVWXUEHGRUSUREOHPDWLF +\GURSK\WLF YHJHWDWLRQ 7RWDO&RYHU < SUHVHQW" 5HPDUNV ,QFOXGHSKRWRQXPEHUVKHUHRURQDVHSDUDWHVKHHW h^ŵǇŽƌƉƐŽĨŶŐŝŶĞĞƌƐDŝĚǁĞƐƚZĞŐŝŽŶ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rial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rial]]-XQFXVWHQXLV [[978,1283,990,1331][10][B,I,][Arial]] WXVVRFNVHGJH [[698,1335,950,1383][10][B,I,][Arial]]&DUH[VWULFWD [[950,1335,962,1383][10][B,I,][Arial]] 6HGJHV 5XVKHV 6XEWRWDO 'F 0HVLF3UDLULH6RXWKHDVW RI0L[ &RPPRQ1DPH6FLHQWLILF1DPH5DWH OEDF 5DWH NJKD 6HHGVVTIW E\ZHLJKW ,QGLDQJUDVV [[698,510,1105,558][10][B,I,][Arial]]6RUJKDVWUXPQXWDQV [[1105,510,1117,558][10][B,I,][Arial]] VLGHRDWVJUDPDL]LDDXUHD [[913,1279,925,1327][10][B,I,][Arial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´´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±2FW 0D\±$XJ $SULO-XO\-XO\±2FW $SULO-XQH-XO\6HSW $SULO±6HSW 0L[HVEHJLQQLQJZLWKQXPEHU$SULO±-XO\6HSW±2FW 1RWH)RUWKHSRUWLRQRI0LQQHVRWDQRUWKRIDQGLQFOXGLQJ7+WKH6HDVRQRI3ODQWLQJ IRU0L[WXUHVWKURXJKVKDOOEH$SULOWKURXJK6HSWHPEHU 'RUPDQW6HHGLQJ :KHQGRUPDQWVHHGLQJLWLVLPSRUWDQWWRQRWHGLIIHUHQWVSHFLHVDUHGRUPDQWDWGLIIHUHQWWLPHVRIWKH\HDU 'RUPDQWVHHGLQJIRUZDUPVHDVRQJUDVVHVRFFXUVLQHDUO\IDOODVWKH\UHTXLUH)DQGDERYHVXVWDLQHGVRLO WHPSHUDWXUHVDQGPRLVWXUHWRJHUPLQDWH&RROVHDVRQJUDVVHVZLOOJHUPLQDWHDWFROGHUWHPSHUDWXUHVDVRLO WHPSHUDWXUHDWDGHSWKRI´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´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±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« ,PPHGLDWHO\EHIRUHVHHGLQJEURDGFDVWDQGZRUNLQWRWKHWRSLQFKRIVRLOWKHIHUWLOL]HUDWWKHDSSURSULDWH DSSOLFDWLRQUDWHWKHQVHHG3ULRUWRPXOFKLQJILUPXSWKHVHHGEHGZLWKDFXOWLSDFNHURURWKHUDSSURYHGVRLO ILUPLQJHTXLSPHQW 3DFNHW3J 'F 6HHGLQJ0HWKRGV 0HWKRG'URS6HHGLQJ2QWR7LOOHG6LWHV 7KLVLVWKH³VWDQGDUG´PHWKRGIRUVHHGLQJRQSUHSDUHGVLWHVVXFKDVWKRVHRQFRQVWUXFWLRQSURMHFWV $ 6LWH3UHSDUDWLRQ 7KHVLWHVKRXOGEHSUHSDUHGE\ORRVHQLQJWRSVRLOWRDPLQLPXPGHSWKRILQFKHV % )HUWLOL]HU± 8VHDIHUWLOL]HUDQDO\VLVEDVHGRQDVRLOWHVWRUDJHQHUDOUHFRPPHQGDWLRQLVD 13. FRPPHUFLDOJUDGHDQDO\VLVDWOEVDFUH & 6HHG,QVWDOODWLRQ 6HHGVKRXOGEHLQVWDOOHGZLWKDGURSVHHGHUWKDWZLOODFFXUDWHO\PHWHUWKHW\SHVRI VHHGWREHSODQWHGNHHSDOOVHHGVXQLIRUPO\PL[HGGXULQJWKHVHHGLQJDQGFRQWDLQGURSVHHGWXEHVIRU VHHGSODFHPHQW %ULOOLRQW\SH 7KHGURSVHHGHUVKRXOGEHHTXLSSHGZLWKDFXOWLSDFNHUDVVHPEO\WR HQVXUHVHHGWRVRLOFRQWDFW ' 6HHGLQJ5DWHV 5DWHVDUHVSHFLILHGLQWKHPL[WXUHWDEXODWLRQIRUWKHVSHFLILHGPL[ ( 3DFNLQJ± ,IWKHGURSVHHGHULVQRWHTXLSSHGZLWKDFXOWLSDFNHUWKHVLWHVKRXOGEHFXOWLSDFNHGIROORZLQJWKH VHHGLQJWRHQVXUHVHHGWRVRLOFRQWDFW ) 0XOFK 7KHVLWHVKRXOGEHPXOFKHGDQGGLVFDQFKRUHGIROORZLQJFXOWLSDFNLQJ7KHVWDQGDUGPXOFKLV 0Q'277\SHDWDUDWHRIWRQVDFUH$OVRVHHWHPSRUDU\HURVLRQFRQWUROIRUDGGLWLRQDOLQIRUPDWLRQ 0HWKRG+\GURVHHGLQJ +\GURVHHGLQJLVDQDFFHSWDEOHPHWKRGIRUHVWDEOLVKLQJWKHJHQHUDOPL[WXUHVZKHQLWLVGRQHFRUUHFWO\+RZHYHU LWLVLPSHUDWLYHWKDWWKHVLWHLVSUHSDUHGDQGILQLVKHGSURSHUO\0Q'27JHQHUDOO\XVHVK\GURVHHGLQJRQVWHHS VORSHVRURWKHUDUHDVLQDFFHVVLEOHWRDGURSVHHGHUVXFKDVZHWODQGHGJHVDQGSRQGV+\GURVHHGLQJLVQRW UHFRPPHQGHGLIWKHH[WHQGHGZHDWKHUSDWWHUQVDUHKRWDQGGU\DQGWKHVRLOVXUIDFHLVGU\DQGGXVW\7KHVHHG ZDWHUVOXUU\VKRXOGEHDSSOLHGZLWKLQRQHKRXUDIWHUWKHVHHGLVDGGHGWRWKHK\GURVHHGHUWDQN $ 6LWH3UHSDUDWLRQ 7KHVLWHVKRXOGEHSUHSDUHGE\ORRVHQLQJWRSVRLOWRDPLQLPXPGHSWKRILQFKHV,WLV FULWLFDOWKDWWKHVHHGEHGEHORRVHQHGWRDSRLQWWKDWWKHUHDUHDORWRIVSDFHVIRUVHHGWRILOWHULQWRFUDFNV DQGFUHYLFHVRWKHUZLVHLWPD\HQGXSRQWKHVXUIDFHDQGZDVKDZD\ZLWKWKHILUVWKHDY\UDLQ % )HUWLOL]HU (LWKHUXVHDIHUWLOL]HUDQDO\VLVEDVHGRQDVRLOWHVWRUDJHQHUDOUHFRPPHQGDWLRQLVD 13. FRPPHUFLDOJUDGHDQDO\VLVDWOEVDFUH & 6HHG,QVWDOODWLRQ 6HHGVKRXOGEHLQVWDOOHGE\K\GURVHHGLQJLWHYHQO\RYHUWKHHQWLUHVLWH$IDQW\SH QR]]OHVKRXOGEHXVHGZLWKDSSUR[LPDWHO\JDOORQVRIZDWHUSHUDFUH,WLVUHFRPPHQGHGWRDGG DSSUR[LPDWHO\HVXUIDFHDQGZDVKDZD\ZLWKWKHILUVWKHDY\UDLQ % )HUWLOL]HU 8VHDIHUWLOL]HUDQDO\VLVEDVHGRQDVRLOWHVWRUDJHQHUDOUHFRPPHQGDWLRQLVD 13. FRPPHUFLDOJUDGHDQDO\VLVDWOEVDFUH 3DFNHW3J 'F & 6HHG,QVWDOODWLRQ 6HHGVKRXOGEHLQVWDOOHGE\EURDGFDVWLQJLWHYHQO\RYHUWKHHQWLUHVLWH6HYHUDOW\SHV DQGVL]HVRIEURDGFDVWVHHGHUVDUHDYDLODEOHIRUXVHUDQJLQJIURPIHUWLOL]HUW\SHVSUHDGHUVWRSRZHU VSUHDGHUVPRXQWHGRQDOOWHUUDLQYHKLFOHV6HHGVKRXOGEHPL[HGWKRURXJKO\SULRUWRVHHGLQJDQGVKRXOG EHPL[HGRFFDVLRQDOO\LQWKHVSUHDGHUWRSUHYHQWVHSDUDWLRQDQGVHWWOLQJ ' 6HHGLQJ5DWHV 5DWHVDUHVSHFLILHGLQWKHPL[WXUHWDEXODWLRQIRUWKHVSHFLILHGPL[ ( +DUURZLQJ 7KHVLWHVKRXOGEHKDUURZHGRUUDNHGIROORZLQJVHHGLQJ ) 3DFNLQJ 7KHVLWHVKRXOGEHFXOWLSDFNHGIROORZLQJKDUURZLQJ * 0XOFK 7KHVLWHVKRXOGEHPXOFKHGIROORZLQJSDFNLQJXVLQJRQHRIWKHIROORZLQJW\SHVRIPXOFK DVSHU SODQVRUVSHFLDOSURYLVLRQV 0Q'277\SHPXOFKDWDUDWHRIWRQVSHUDFUHIROORZHGE\GLVFDQFKRULQJ 0Q'27+\GUDXOLF6RLO6WDELOL]HURU%RQGHG)LEHU0DWUL[RQLQDFFHVVLEOHVLWHV 0HWKRG,QWHUVHHGLQJ,QWR([LVWLQJ9HJHWDWLRQRU0XOFK 7KLVPHWKRGLVJHQHUDOO\XVHGIRUVLWHVWKDWGLGQRWHVWDEOLVKZHOORULIDWHPSRUDU\PXOFKZDVDSSOLHGWRWKHVLWH $QLQWHUVHHGHUGULOOFDQEHXVHGWRSODQWWKHVHHGZLWKRXWUHPRYLQJRUWLOOLQJWKHH[LVWLQJYHJHWDWLRQRUPXOFK $ 6LWH3UHSDUDWLRQ)RU([LVWLQJ9HJHWDWLRQ 7KHVLWHVKRXOGEHSUHSDUHGE\PRZLQJH[LVWLQJ YHJHWDWLRQWRDKHLJKWRILQFKHV7KHDUHDFDQWKHQEHGLUHFWO\SODQWHGXVLQJDQLQWHUVHHGLQJGULOO 127(6LWHVWKDWFRQWDLQVLJQLILFDQWZHHGLQIHVWDWLRQVPD\UHTXLUHZHHGFRQWUROPHDVXUHVEHIRUH SODQWLQJ$IWHUPRZLQJDKHUELFLGHDSSOLFDWLRQZLWKJO\SKRVDWHVKRXOGEHXVHG$GGLWLRQRIDVXUIDFWDQW DQGRUDGGLWLRQRI'WRWKHPL[RIWHQUHVXOWVLQDPRUHFRPSOHWHNLOOHVSHFLDOO\ZLWKXQZDQWHGEURDG OHDYHGVSHFLHV5HFRPPHQGHGKHUELFLGHUDWHVDUHTXDUWVDFUHRIJO\SKRVDWHDQG TXDUWVDFUH'6HHGLQJFDQEHSHUIRUPHGHF7UDQVOLQH6WLQJHUHWF)ROORZWKHODEHOGLUHFWLRQV % )HUWLOL]HU 8VHDIHUWLOL]HUDQDO\VLVEDVHGRQDVRLOWHVWRUDJHQHUDOUHFRPPHQGDWLRQLVD 13. FRPPHUFLDOJUDGHDQDO\VLVDWOEVDFUH & 6HHG,QVWDOODWLRQ 7KHVHHGPL[WXUHVKRXOGEHLQVWDOOHGZLWKDVHHGGULOOWKDWZLOODFFXUDWHO\PHWHUWKH VHHGWREHSODQWHGDQGNHHSDOOVHHGVXQLIRUPO\PL[HGGXULQJWKHGULOOLQJ7KHGULOOVKRXOGFRQWDLQD OHJXPHER[IRUVPDOOVHHGVDQGLWVKRXOGEHHTXLSSHGZLWKGLVFIXUURZRSHQHUVDQGSDFNHUDVVHPEO\WR FRPSDFWWKHVRLOGLUHFWO\RYHUWKHGULOOURZV0D[LPXPURZVSDFLQJVKRXOGEHLQFKHV7KHLQWHUVHHGHU GULOOPXVWEHRXWILWWHGZLWKWUDVKULSSHUVWKDWZLOOVOLFHWKURXJKWKHYHJHWDWLYHPDWDQGPDNHDIXUURZLQWR WKHXQGHUO\LQJVRLODSSUR[LPDWHO\LQFKZLGHE\WRLQFKGHHS7KHVHIXUURZVVKDOOEHGLUHFWO\LQOLQH ZLWKWKHGULOOVHHGGLVFRSHQHUV)LQHVHHGVKRXOGEHGURSVHHGHGRQWRWKHJURXQGVXUIDFHIURPWKHILQH VHHGER[GULOOVHHGLQJVKRXOGEHGRQHZKHQHYHUSRVVLEOHDWDULJKWDQJOHWRVXUIDFHGUDLQDJH ' 6HHGLQJ5DWHV 5DWHVDUHVSHFLILHGLQWKHPL[WXUHWDEXODWLRQIRUWKHVSHFLILHGPL[ ( +DUURZLQJ +DUURZLQJLVQRWUHTXLUHGZKHQXVLQJWKLVVHHGLQJPHWKRG ) 3DFNLQJ &XOWLSDFNLQJWKHVLWHLVUHFRPPHQGHGWRHQVXUHVHHGWRVRLOFRQWDFW * 0XOFK 0XOFKLVQRWUHTXLUHGZKHQXVLQJWKLVVHHGLQJPHWKRGXQOHVVDVRLOFRYHUDJHUDWHLVQRW PDLQWDLQHG (VWDEOLVKLQJ1DWLYH*UDVVHVDQG)RUEV *HQHUDO5HFRPPHQGDWLRQV 6HHGLQJVKRXOGWDNHSODFHVRRQDIWHUDQ\ILQDOJUDGLQJFRQWRXULQJRURWKHUPDMRUVLWHZRUNLVFRPSOHWHGWR PLQLPL]HVRLOHURVLRQDQGLQYDVLRQE\ZHHG\VSHFLHV&RQVHTXHQWO\WKLVZRUNVKRXOGEHGRQHMXVWEHIRUHWKH WLPHRI\HDUZKHQWKHVHHGVVKRXOGEHSODQWHG6HHGLQJQDWLYHVFDQEHGRQHZLWKJRRGUHVXOWVLQWKHVSULQJRU IDOO,IVHHGLQJRYHUGHDGYHJHWDWLRQWKHEHVWUHVXOWVDUHLQWKHIDOOWKHIUHH]HWKDZF\FOHZLOODOORZEHWWHUVHHGWR VRLOFRQWDFW)DOOVHHGLQJDOORZVVWUDWLILFDWLRQIRUWKHVHHGVWKDWPD\QHHGWRRYHUZLQWHUWRJHUPLQDWH6HHGLQJ QDWLYHJUDVVHVDQGIRUEV ZLOGIORZHUV FDQEHDFFRPSOLVKHGXVLQJDQXPEHURIGLIIHUHQWPHWKRGV+RZHYHUGXH WRWKHFRPSOH[LW\RIVHHGVL]HVWH[WXUHVDQGGHQVLWLHVDJUHDWGHDORIFDUHQHHGVWREHWDNHQWRHQVXUHWKDWWKH VLWHLVZHOOSUHSDUHGDQGWKDWVHHGLVSODFHGSURSHUO\$QXPEHURIGLIIHUHQWW\SHVRIGULOOVPD\EHXVHGWRSODFH VHHGEXWEHDZDUHWKDWPDQ\³ROGHUVW\OH´GULOOVZLOOFORJHDVLO\ZLWKIOXII\VHHGV6RPHGULOOVZLOOQRWGLVWULEXWHWKH VHHGHYHQO\GXHWRWKHYDU\LQJVL]HDQGZHLJKWRIWKHVHHG%URDGFDVWVHHGLQJDQGK\GURVHHGLQJDOVRZRUNZHOO 'F EXWUHPHPEHUWKDWQDWLYHVFDQQRWEHVHHGHGH[DFWO\WKHVDPHDVWXUIJUDVVHV7KHUHDUHVHYHUDOJHQHUDO³UXOHV RIWKXPE´WRNHHSLQPLQGZKHQVHHGLQJQDWLYHV 1DWLYHVHHGVSUHIHUDILUPVHHGEHG$QRYHUO\VRIWVHHGEHGULVNVWKHFKDQFHRIVHHGVEHLQJSODQWHGWRR GHHS /DUJHDQGRUIOXII\VHHGVVKRXOGEHEXULHGDSSUR[LPDWHO\LQFKGHHS 6HHGVKRXOGEHOLJKWO\FRYHUHGZLWKVRLO+DUURZLQJRUUDNLQJZRUNVZHOO 6PDOODQGRUILQHVHHGV PRVWIRUEV VKRXOGEHVFDWWHUHGRYHUWKHVRLOVXUIDFH 1DWLYH*UDVVDQG)RUE0L[WXUHV 6HHGPL[WXUHVEHJLQQLQJZLWKWKHQXPEHUDUHQDWLYHPL[WXUHVDQGFRQVLVWRIZDUPVHDVRQQDWLYHJUDVVHVFRRO VHDVRQQDWLYHJUDVVHVQDWLYHIRUEV ZLOGIORZHUV DQGDQQXDORUVKRUWWHUPFRYHUFURSVWRSURYLGHLQFUHDVHG HURVLRQSURWHFWLRQ$GHOLEHUDWHDWWHPSWKDVEHHQPDGHWRKDYHDODUJHQXPEHURIGLIIHUHQWJUDVVHVDQGIRUEVDV LWKDVEHHQVKRZQWKDWGLYHUVHSODQWLQJVDUHPRUHUHVLVWDQWWRGURXJKWIORRGVDQGSDWKRJHQVWKDQPRQRW\SLFRU ORZGLYHUVLW\SODQWLQJV7KHLQFOXVLRQRIDGLYHUVHPL[WXUHRIIRUEVLVJUHDWO\EHQHILFLDOWRZLOGOLIHDQGWKHIRUEV RFFXS\QLFKHVWKDWZRXOGRWKHUZLVHEHRFFXSLHGE\ZHHGVVXFKDVWKLVWOH7KHQDWLYHOHJXPHVDOVRIL[QLWURJHQ ZKLFKLVPDGHDYDLODEOHWRRWKHUSODQWVLQWKHV\VWHPWKURXJKIXQJDOLQWHUDFWLRQVEHWZHHQSODQWV&RROVHDVRQ QDWLYHJUDVVHVWHQGWRHVWDEOLVKTXLFNO\DQGZLOOGHFUHDVHRYHUWLPHRQVLWHVZKHUHZDUPVHDVRQVSHFLHVZRXOG QRUPDOO\GRPLQDWH:DUPVHDVRQQDWLYHJUDVVHVWHQGWREHVORZHUWRHVWDEOLVKEXWDUHH[WUHPHO\KDUG\DQG ORQJOLYHG:DUPVHDVRQJUDVVHVDOVRWHQGWRVWD\VWDQGLQJRYHUWKHZLQWHUDQGSURYLGHWKHEHVWVQRZILOWHULQJ FDSDELOLWLHVDQGZLOGOLIHKDELWDW &RYHUQXUVH&URSV ±&RYHUFURSVSURYLGHDTXLFNVKRUWWHUPYHJHWDWLYHFRYHUZKLOHWKHSHUPDQHQWQDWLYHVSHFLHVDUHHVWDEOLVKLQJ$ FRYHUFURSUHGXFHVWKHVRLOVHURVLRQSRWHQWLDODQGPRGHUDWHVWKHQDWLYHVHHGOLQJVPLFURFOLPDWHGXULQJ HVWDEOLVKPHQW7\SLFDOFRYHUFURSVLQ0Q'27¶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±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rial]]5KL]RELXP [[931,1460,1049,1507][10][,,][Arial]]7KH [[1049,1460,1232,1508][10][,I,][Arial]]5KL]RELDO [[1233,1460,2300,1507][10][, ,][Arial]]EDFWHULDRFFXS\QRGXOHVRQWKHSODQWURRWV0RVWOHJXPH VHHGFRPHVZLWKEDFWHULDOLQRFXODQWLQWKHIRUPRIDILQHSRZGHU8VXDOO\WKLVLQRFXOXPLVDOUHDG\GHDGRULVQRW WKHULJKWVSHFLHVIRUWKHQDWLYHOHJXPHDQGWKHPDMRULW\RIWKHQRGXODWLRQWKDWDFWXDOO\RFFXUVLVIURP[[2073,1556,2233,1604][10][,I,][Arial]]5KL]RELD [[2235,1556,2247,1603][10][,,][Arial]] DOUHDG\SUHVHQWLQWKHVRLO([WUHPHO\GLVWXUEHGVRLOVPD\FRQWDLQQR[[1503,1603,1664,1651][10][,I,][Arial]]5KL]RELD [[1665,1603,1677,1650][10][,,][Arial]] [[1677,1603,2181,1650][10][,,][Arial]]DW DOO0RUHLQIRUPDWLRQRQ [[225,1651,385,1699][10][,I,][Arial]]5KL]RELD [[387,1651,399,1698][10][,,][Arial]] [[399,1651,2247,1698][10][,,][Arial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³FHUWLILHG´WREHRI01 RU UHJLRQDO RULJLQDQGRIZLOGHFRW\SH7KHRULJLQFHUWLILFDWLRQSURJUDPLVDGPLQLVWHUHGE\WKH0LQQHVRWD&URS ,PSURYHPHQW$VVRFLDWLRQ 0&,$ 'RFXPHQWDWLRQDFFRPSDQ\LQJRULJLQFHUWLILFDWLRQVKRXOGLQFOXGHWKH³\HOORZ WDJ´LIVSHFLHVDUHEHLQJVXSSOLHGLQGLYLGXDOO\DQGRUDGRFXPHQWIURP0&,$LQGLFDWLQJRULJLQ2QODEHOVDIIL[HGWR EDJVRIVHHGLWLVFRPPRQWRVKRZWKHVSHFLHVJHUPLQDWLRQSXULW\ORWQXPEHUDQGXQGHURULJLQ³<7´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³EDOOXS´LQWKHVHHGHU )LQHVHHGKDVDWHQGHQF\WR³SRXUWKURXJK´WKHVHHGHU7KHUHIRUHDQHIIHFWLYHDJLWDWRULVUHTXLUHGLQWKHVHHG ER[0L[LQJKHDYLHUVHHGVXFKDVVLGHRDWVJUDPDZKHDWDQGRDWVZLOODOVRKHOS³ZHLJKGRZQ´WKHOLJKWHUIOXII\ VHHG ,IDK\GURVHHGHULVXVHGWKHVHHGLVXVXDOO\RUGHUHGDVDPL[WXUH7KHK\GURVHHGHUKDVDYLJRURXVDJLWDWRULQ WKHWDQN 6HHGLQJ0HWKRGV 0HWKRG'URS6HHGLQJ2QWR7LOOHG6LWHV 7KLVLVWKH³VWDQGDUG´PHWKRGIRUVHHGLQJQDWLYHVSHFLHVRQSUHSDUHGVLWHVVXFKDVWKRVHRQFRQVWUXFWLRQ SURMHFWV $ 6LWH3UHSDUDWLRQ± 7KHVLWHVKRXOGEHSUHSDUHGE\ORRVHQLQJWRSVRLOWRDPLQLPXPGHSWKRILQFKHV % )HUWLOL]HU± ,IQRWEDVLQJWKHIHUWLOL]HUDSSOLFDWLRQRQVRLOWHVWUHVXOWVWKHIHUWLOL]HUXVHGVKRXOGEHD FRPPHUFLDOJUDGHVORZUHOHDVHFRPSOHWHIHUWLOL]HUDSSOLHGDWDUDWHRIOEVDFUHDWWKHWLPHRISUHSDULQJ WKHVHHGEHGIRUVHHGLQJ7KHIHUWLOL]HUVKRXOGFRQWDLQ 13. DQDO\VLV & 6HHG,QVWDOODWLRQ± 6HHGVKRXOGEHLQVWDOOHGZLWKDGURSVHHGHUWKDWZLOODFFXUDWHO\PHWHUWKHW\SHVRI VHHGWREHSODQWHGDQGNHHSDOOVHHGVXQLIRUPO\PL[HGGXULQJSODQWLQJ 7ULOOLRQW\SH 7KHVHHGHUVKRXOG FRQWDLQDPLQLPXPRIWKUHHVHHGER[HVDILQHVHHGER[DER[IRUODUJHIOXII\VHHGVDQGDER[IRUFRRO VHDVRQRUJUDLQV,WVKRXOGEHHTXLSSHGZLWKGURSWXEHVDQGDSDFNHUDVVHPEO\WRFRPSDFWWKHVRLO GLUHFWO\RYHUWKHVHHG$OOVHHGLQJVKRXOGEHGRQHDWDULJKWDQJOHWRVXUIDFHGUDLQDJH ' 6HHGLQJ5DWHV± 5DWHVDUHVSHFLILHGLQWKHPL[WXUHWDEXODWLRQIRUWKHVSHFLILHGPL[ ( +DUURZLQJ± 7KHVLWHVKRXOGEHOLJKWO\KDUURZHGRUUDNHGIROORZLQJVHHGLQJLIWKHVHHGHUGRHVQRWFRQWDLQ DFXOWLSDFNHU ) 3DFNLQJ± &XOWLDFNLQJWKHVLWHIROORZLQJKDUURZLQJLVUHFRPPHQGHGWRHQVXUHDILUPVHHGEHG * 0XOFK± 7KHVLWHVKRXOGEHPXOFKHGDQGGLVFDQFKRUHGIROORZLQJSDFNLQJXVLQJRQHRIWKHIROORZLQJW\SHV RIPXOFK DVSHUSODQVRUVSHFLDOSURYLVLRQV 0Q'277\SH 0&,$FHUWLILHGZHHGIUHHPXOFK DWDUDWHRIWRQVSHUDFUH 3UDLULHKD\PXOFK 0Q'277\SHHRI OEVDFUH ( +DUURZLQJ± 7KHVLWHVKRXOGEHKDUURZHGRUUDNHGIROORZLQJLQVWDOODWLRQRIWKHWHPSRUDU\FRYHUFURS 3DFNHW3J 'F ) 3DFNLQJ± 3DFNLQJLVQRWUHTXLUHGDIWHULQVWDOOLQJWKHWHPSRUDU\FRYHUFURS * 0XOFK±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³F\FORQH´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±PRZLQJVKRXOGKHOSFRQWURODQQXDOZHHGV6SRWVSUD\WKLVWOHVHWF ,ISODQWVDUHJURZLQJVORZO\\RXFDQDSSO\IHUWLOL]HU DQDO\VLV DVQHFHVVDU\RYHUWKHWRSWRLPSURYH JURZWK 0DLQWHQDQFHDIWHU)DOORU'RUPDQW6HHGLQJ 0RZLQJLQ0D\RU-XQHPD\EHQHFHVVDU\LIZHHGLQIHVWDWLRQEHFRPHVDSUREOHP :HHG&RQWURO±PRZLQJVKRXOGKHOSFRQWURODQQXDOZHHGV6SRWVSUD\WKLVWOHVHWF /RQJ7HUP 0DLQWHQDQFH &DQPRZWLPHVSHU\HDUDVGHVLUHG 6SRWVSUD\ZHHGVDVQHHGHG 7XUIJUDVV0L[WXUHV DQG <HDU 3URYLGHZDWHULIQHFHVVDU\WRDLGHVWDEOLVKPHQW $IWHUWXUIJUDVVHVUHDFKDKHLJKWRILQFKHVLQLWLDOO\PRZWRDKHLJKWRIWRLQFKHV /RQJ7HUP )HUWLOL]HDQGZDWHUDVQHHGHG 0RZDPLQLPXPRIRQFHHYHU\ZHHNV 3DFNHW3J 'F 1DWLYH*UDVVDQG)RUE0L[WXUHV PL[WXUHVEHJLQQLQJZLWKWKHQXPEHU <HDU (VWDEOLVKPHQW VSULQJVHHGLQJ 3UHSDUHVLWH/DWH$SULO0D\ 6HHG0D\±-XQH 0DLQWHQDQFH 0RZ LQFKHV ±HYHU\GD\VDIWHUSODQWLQJXQWLO6HSWHPEHU :HHG&RQWUROPRZLQJVKRXOGKHOSFRQWURODQQXDOZHHGV6SRWVSUD\WKLVWOHVHWF (VWDEOLVKPHQW IDOOVHHGLQJ 3UHSDUHVLWH/DWH$XJXVWHDUO\6HSWHPEHU 6HHGODWH6HSWHPEHUWRIUHH]HXS 0DLQWHQDQFH IROORZLQJVHDVRQ 0RZ LQFKHV ±RQFHLQ0D\-XQHDQG-XO\ :HHG&RQWUROPRZLQJVKRXOGNHHSDQQXDOZHHGVGRZQ6SRWVSUD\WKLVWOHVHWF (YDOXDWLRQ &RYHUFURSJURZLQJZLWKLQZHHNVRISODQWLQJ H[FHSWGRUPDQWSODQWLQJV 6HHGOLQJVVSDFHGLQFKHVDSDUWLQGULOOURZV 1DWLYHJUDVVVHHGOLQJVPD\RQO\EHLQFKHVWDOO ,IWKHUHLVDIOXVKRIJURZWKIURPIR[WDLOHWFPRZDVQHFHVVDU\ <HDU 0DLQWHQDQFH 0RZ LQFKHV RQHWLPHEHWZHHQ-XQH$XJXVWEHIRUHZHHGVVHWVHHG :HHG&RQWUROPRZLQJVKRXOGNHHSDQQXDOZHHGVGRZQ6SRWVSUD\WKLVWOHVHWF 6RPHVLWHVPD\QRWUHTXLUHPXFKPDLQWHQDQFHWKHVHFRQG\HDU (YDOXDWLRQ &RYHUFURSZLOOEHJRQHXQOHVVZLQWHUZKHDWZDVXVHGLQDIDOOSODQWLQJ *UDVVHVIRUPLQJFOXPSVLQFKHVDSDUWLQGULOOURZVEXWVWLOOVKRUW 6RPHIORZHUVVKRXOGEHEORRPLQJ EODFNH\HG6XVDQVEHUJDPRWHWF ,IWKHUHLVDIOXVKRIJURZWKIURPIR[WDLOHWFPRZVLWH <HDU 0DLQWHQDQFH 0RZRQO\LIQHFHVVDU\ :HHG&RQWURO6SRWVSUD\WKLVWOHVHWF 6LWHVXVXDOO\GRQRWUHTXLUHPXFKPDLQWHQDQFHWKHWKLUG\HDU (YDOXDWLRQ 3ODQWLQJVKRXOGEHJLQORRNLQJOLNHDSUDLULHWDOOJUDVVHVIORZHUVHWF /RQJWHUP 0DLQWHQDQFH :HHG&RQWURO6SRWVSUD\WKLVWOHVHWF %XUQLQJ \HDUURWDWLRQ DOWHUQDWHVSULQJDQGIDOOLISRVVLEOH +D\LQJ \HDUURWDWLRQ ODWHVXPPHURUHDUO\IDOO$OWHUQDWHZLWKEXUQLQJ PD\VXEVWLWXWHIRUEXUQLQJ %XUQLQJWZR\HDUVLQDURZZLOOUHDOO\³FOHDQXS´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±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¶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¶VFRVWEHUHVSRQVLEOHIRUZHHGFRQWUROE\FRPSO\LQJZLWKQR[LRXV ZHHGFRQWUROODZVDQGHPHUJHQF\FRQWURORISHVWVQHFHVVDU\WRSURWHFWWKHSXEOLFKHDOWKRQWKHDUHDV VSHFLILHGLQWKHUHSODFHPHQWSODQDQG J 6KDOOFRPSO\ZLWKDQ\RWKHUUHTXLUHPHQWVRUUHVWULFWLRQVVSHFLILHGLQWKHUHSODFHPHQW SODQLQFOXGLQJEXWQRWOLPLWHGWRKD\LQJPRZLQJWLPEHUPDQDJHPHQWRURWKHUYHJHWDWLYH DOWHUDWLRQVWKDWGRQRWHQKDQFHRUZRXOGGHJUDGHWKHHFRORJLFDOIXQFWLRQVDQGYDOXHVRIWKH UHSODFHPHQWVLWH 7KLV'HFODUDWLRQPD\EHPRGLILHGRQO\E\WKHMRLQWZULWWHQDSSURYDORIWKH/*8 DQGWKH6WDWHRI0LQQHVRWDWKURXJKWKH0LQQHVRWD%RDUGRI:DWHUDQG6RLO5HVRXUFHV,IWKH 5HSODFHPHQW:HWODQGKDVEHHQXVHGWRPLWLJDWHZHWODQGORVVHVXQGHUWKH)HGHUDO:DWHU 3ROOXWLRQ&RQWURO$FWWKH86$UP\&RUSVRI(QJLQHHUV RUVXFFHVVRUDJHQF\ PXVWDOVRDJUHH WRWKHPRGLILFDWLRQLQZULWLQJ6XFKPRGLILFDWLRQPD\LQFOXGHWKHUHOHDVHRIODQGFRQWDLQHGLQ WKHOHJDOGHVFULSWLRQDERYHLILWLVGHWHUPLQHGWKDWQRQZHWODQGDUHDVKDYHEHHQHQFXPEHUHGE\ WKLV'HFODUDWLRQXQOHVVWKHDSSURYHGUHSODFHPHQWSODQGHVLJQDWHVWKHVHQRQZHWODQGDUHDVIRU HVWDEOLVKPHQWRISHUPDQHQWYHJHWDWLYHFRYHU 7KLV'HFODUDWLRQPD\EHHQIRUFHGDWODZRULQHTXLW\E\WKH/*8RUE\WKH6WDWHRI 0LQQHVRWD7KH/*8DQGWKH6WDWHRI0LQQHVRWDVKDOOEHHQWLWOHGWRUHFRYHUDQDZDUGRIUHDVRQDEOH DWWRUQH\VIHHVIURP'HFODUDQWLQDQ\DFWLRQWRHQIRUFHWKLV'HFODUDWLRQ7KHULJKWWRHQIRUFHWKH WHUPVRIWKLV'HFODUDWLRQLVQRWZDLYHGRUIRUIHLWHGE\DQ\IRUEHDUDQFHRUIDLOXUHWRDFWRQWKHSDUWRI WKH6WDWHRU/*8,IWKHVXEMHFWUHSODFHPHQWDUHDLVWREHXVHGSDUWLDOO\RUZKROO\WRIXOILOOSHUPLW UHTXLUHPHQWVXQGHUWKH)HGHUDO:DWHU3ROOXWLRQ&RQWURO$FWRUDIHGHUDOIDUPSURJUDPWKHQWKH SURYLVLRQVRIWKLV'HFODUDWLRQWKDWUXQWRWKH6WDWHRUWKH/*8PD\DOVREHHQIRUFHGE\WKH8QLWHG 6WDWHVRI$PHULFDLQDFRXUWRIFRPSHWHQWMXULVGLFWLRQ 7KLV'HFODUDWLRQPXVWEHUHFRUGHGDQGSURRIRIUHFRUGLQJVXEPLWWHGWRWKH /*8RURWKHUUHJXODWRU\DXWKRULW\LQRUGHUWREHYDOLG %:65)RUPV3DJHRI 3DFNHW3J 3DFNHW3J 'F $33(1',;, 01%:65&RQVHQWWR:HWODQG5HSODFHPHQW :6% $VVRFLDWHV,QFZVEHQJFRP 3DFNHW3J 'F 0LQQHVRWD:HWODQG&RQVHUYDWLRQ$FW :+(5($6%U\FH'HFRRNLVWKHIHHRZQHU V RIWKHIROORZLQJODQGV >,QVHUWVDPHOHJDOGHVFULSWLRQIURP5HSODFHPHQW:HWODQG 'HFODUDWLRQ@6HH$WWDFKHG/HJDO'HVFULSWLRQ $1':+(5($6WKHXQGHUVLJQHG*. 5-3URSHUWLHV//&KDVDQLQWHUHVWLQWKHODQG SXUVXDQWWR 0RUWJDJH 8WLOLW\(DVHPHQWIRUXWLOLW\OLQHRUSLSHOLQH ZKLFKUXQVWKURXJKWKH5HSODFHPHQW:HWODQG 'UDLQDJH(DVHPHQWIRUGLWFKWLOHOLQHRURWKHU GUDLQDJHV\VWHPZKLFKUXQVWKURXJKWKH 5HSODFHPHQW:HWODQG %RWKSDUWLHVWRWKHFRQWUDFWPXVWVLJQWKLVGRFXPHQW &RQWUDFWIRU'HHG±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ƌŽũĞĐƚEĂŵĞĂŶĚͬŽƌEƵŵďĞƌ͗'<ΘZ:WƌŽƉĞƌƚǇ WZdKE͗ƉƉůŝĐĂŶƚ/ŶĨŽƌŵĂƚŝŽŶ /ĨĂƉƉůŝĐĂŶƚŝƐĂŶĞŶƚŝƚǇ;ĐŽŵƉĂŶǇ͕ŐŽǀĞƌŶŵĞŶƚĞŶƚŝƚǇ͕ƉĂƌƚŶĞƌƐŚŝƉ͕ĞƚĐ͘Ϳ͕ĂŶĂƵƚŚŽƌŝǌĞĚĐŽŶƚĂĐƚƉĞƌƐŽŶŵƵƐƚďĞŝĚĞŶƚŝĨŝĞĚ͘/ĨƚŚĞ ĂƉƉůŝĐĂŶƚŝƐƵƐŝŶŐĂŶĂŐĞŶƚ;ĐŽŶƐƵůƚĂŶƚ͕ůĂǁǇĞƌ͕ŽƌŽƚŚĞƌƚŚŝƌĚƉĂƌƚǇͿĂŶĚŚĂƐĂƵƚŚŽƌŝǌĞĚƚŚĞŵƚŽĂĐƚŽŶƚŚĞŝƌďĞŚĂůĨ͕ƚŚĞĂŐĞŶƚ͛Ɛ ĐŽŶƚĂĐƚŝŶĨŽƌŵĂƚŝŽŶŵƵƐƚĂůƐŽďĞƉƌŽǀŝĚĞĚ͘ ƉƉůŝĐĂŶƚͬ>ĂŶĚŽǁŶĞƌEĂŵĞ͗'<ΘZ:WƌŽƉĞƌƚŝĞƐ>> DĂŝůŝŶŐĚĚƌĞƐƐ͗ϳϬϯϳƚŚǀĞŶƵĞ^t͕ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϮ WŚŽŶĞ͗ϱϬϳͲϮ ϴϲͲϵϯϴϬ ͲŵĂŝůĚĚƌĞƐƐ͗ ƵƚŚŽƌŝǌĞĚŽŶƚĂĐƚ;ĚŽŶŽƚĐŽŵƉůĞƚĞŝĨƐĂŵĞĂƐĂďŽǀĞͿ͗t^ĂŶĚƐƐŽĐŝĂƚĞƐ/ŶĐ͘ ƌĚ DĂŝůŝŶŐĚĚƌĞƐƐ͗ϭϲϰϴϯǀĞŶƵĞ^͕ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂϱϱϵϬϰ WŚŽŶĞ͗ϱϬϳͲϮϭϴͲϯϯϴϬ ͲŵĂŝůĚĚƌĞƐƐ͗ůůƵŶĚĞΛǁƐďĞŶŐ͘ĐŽŵ ŐĞŶƚEĂŵĞ͗>ƵŬĞt>ƵŶĚĞ DĂŝůŝŶŐĚĚƌĞƐƐ͗^ĂŵĞ WŚŽŶĞ͗ϱϬϳͲϮϭϴͲϯϯϴϬ ͲŵĂŝůĚĚƌĞƐƐ͗ůůƵŶĚĞΛǁƐďĞŶŐ͘ĐŽŵ WZddtK͗^ŝƚĞ>ŽĐĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ ŽƵŶƚǇ͗KůŵƐƚĞĚŝƚǇͬdŽǁŶƐŚŝƉ͗ZŽĐŚĞƐƚĞƌ WĂƌĐĞů/ĂŶĚͬŽƌĚĚƌĞƐƐ͗ϲϰϭϭϮϯϬϴϬϲϰϯ >ĞŐĂůĞƐĐƌŝƉƚŝŽŶ;^ĞĐƚŝŽŶ͕dŽǁŶƐŚŝƉ͕ZĂŶŐĞͿ͗^tϭͬϰŽĨƚŚĞEtϭͬϰ^ϭϭͲdϭϬϲEͲZϭϰt >Ăƚͬ>ŽŶŐ;ĚĞĐŝŵĂůĚĞŐƌĞĞƐͿ͗ ƚƚĂĐŚĂŵĂƉƐŚŽǁŝŶŐƚŚĞůŽĐĂƚŝŽŶŽĨƚŚĞƐŝƚĞŝŶƌĞůĂƚŝŽŶƚŽůŽĐĂůƐƚƌĞĞƚƐ͕ƌŽĂĚƐ͕ŚŝŐŚǁĂǇƐ͘^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ ƉƉƌŽǆŝŵĂƚĞƐŝǌĞŽĨƐŝƚĞ;ĂĐƌĞƐͿŽƌŝĨĂůŝŶĞĂƌƉƌŽũĞĐƚ͕ůĞŶŐƚŚ;ĨĞĞƚͿ͗ϵ͘ϴϴͲĂĐƌĞƐ /ĨǇŽƵŬŶŽǁƚŚĂƚǇŽƵƌƉƌŽƉŽƐĂůǁŝůůƌĞƋƵŝƌĞĂŶŝŶĚŝǀŝĚƵĂůWĞƌŵŝƚĨƌŽŵƚŚĞh͘^͘ƌŵǇŽƌƉƐŽĨŶŐŝŶĞĞƌƐ͕ǇŽƵŵƵƐƚƉƌŽǀŝĚĞƚŚĞ ŶĂŵĞƐĂŶĚĂĚĚƌĞƐƐĞƐŽĨĂůůƉƌŽƉĞƌƚǇŽǁŶĞƌƐĂĚũĂĐĞŶƚƚŽƚŚĞƉƌŽũĞĐƚƐŝƚĞ͘dŚŝƐŝŶĨŽƌŵĂƚŝŽŶŵĂǇďĞƉƌŽǀŝĚĞĚďǇĂƚƚĂĐŚŝŶŐĂůŝƐƚƚŽ ǇŽƵƌĂƉƉůŝĐĂƚŝŽŶŽƌďǇƵƐŝŶŐďůŽĐŬϮϱŽĨƚŚĞƉƉůŝĐĂƚŝŽŶĨŽƌĞƉĂƌƚŵĞŶƚŽĨƚŚĞƌŵǇƉĞƌŵŝƚǁŚŝĐŚĐĂŶďĞŽďƚĂŝŶĞĚĂƚ͗ ŚƚƚƉ͗ͬͬǁǁǁ͘ŵǀƉ͘ƵƐĂĐĞ͘ĂƌŵǇ͘ŵŝůͬWŽƌƚĂůƐͬϱϳͬĚŽĐƐͬƌĞŐƵůĂƚŽƌǇͬZĞŐƵůĂƚŽƌǇŽĐƐͬĞŶŐĨŽƌŵͺϰϯϰϱͺϮϬϭϮŽĐƚ͘ƉĚĨ WZdd,Z͗'ĞŶĞƌĂůWƌŽũĞĐƚͬ^ŝƚĞ/ŶĨŽƌŵĂƚŝŽŶ /ĨƚŚŝƐĂƉƉůŝĐĂƚŝŽŶŝƐƌĞůĂƚĞĚƚŽĂĚĞůŝŶĞĂƚŝŽŶĂƉƉƌŽǀĂů͕ĞǆĞŵƉƚŝŽŶĚĞƚĞƌŵŝŶĂƚŝŽŶ͕ũƵƌŝƐĚŝĐƚŝŽŶĂůĚĞƚĞƌŵŝŶĂƚŝŽŶ͕ŽƌŽƚŚĞƌ ĐŽƌƌĞƐƉŽŶĚĞŶĐĞƐƵďŵŝƚƚĞĚƉƌŝŽƌƚŽƚŚŝƐĂƉƉůŝĐĂƚŝŽŶƚŚĞŶĚĞƐĐƌŝďĞƚŚĂƚŚĞƌĞĂŶĚƉƌŽǀŝĚĞƚŚĞŽƌƉƐŽĨŶŐŝŶĞĞƌƐƉƌŽũĞĐƚŶƵŵďĞƌ͘ ĞƐĐƌŝďĞƚŚĞƉƌŽũĞĐƚƚŚĂƚŝƐďĞŝŶŐƉƌŽƉŽƐĞĚ͕ƚŚĞƉƌŽũĞĐƚƉƵƌƉŽƐĞĂŶĚŶĞĞĚ͕ĂŶĚƐĐŚĞĚƵůĞĨŽƌŝŵƉůĞŵĞŶƚĂƚŝŽŶĂŶĚĐŽŵƉůĞƚŝŽŶ͘dŚĞ ƉƌŽũĞĐƚĚĞƐĐƌŝƉƚŝŽŶŵƵƐƚĨƵůůǇĚĞƐĐƌŝďĞƚŚĞŶĂƚƵƌĞĂŶĚƐĐŽƉĞŽĨƚŚĞƉƌŽƉŽƐĞĚĂĐƚŝǀŝƚǇŝŶĐůƵĚŝŶŐĂĚĞƐĐƌŝƉƚŝŽŶŽĨĂůůƉƌŽũĞĐƚĞůĞŵĞŶƚƐ ƚŚĂƚĞĨĨĞĐƚĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞƐ;ǁĞƚůĂŶĚ͕ůĂŬĞ͕ƚƌŝďƵƚĂƌǇ͕ĞƚĐ͘ͿĂŶĚŵƵƐƚĂůƐŽŝŶĐůƵĚĞƉůĂŶƐĂŶĚĐƌŽƐƐƐĞĐƚŝŽŶŽƌƉƌŽĨŝůĞĚƌĂǁŝŶŐƐ ƐŚŽǁŝŶŐƚŚĞůŽĐĂƚŝŽŶ͕ĐŚĂƌĂĐƚĞƌ͕ĂŶĚĚŝŵĞŶƐŝŽŶƐŽĨĂůůƉƌŽƉŽƐĞĚĂĐƚŝǀŝƚŝĞƐĂŶĚĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞŝŵƉĂĐƚƐ͘ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ DŝŶŶĞƐŽƚĂ/ŶƚĞƌĂŐĞŶĐǇtĂƚĞƌZĞƐŽƵƌĐĞƉƉůŝĐĂƚŝŽŶ&Žƌŵ&ĞďƌƵĂƌǇϮϬϭϰWĂŐĞϯŽĨϵ 3DFNHW3J 'F 3DFNHW3J 'F WƌŽũĞĐƚEĂŵĞĂŶĚͬŽƌEƵŵďĞƌ͗'<ΘZ:WƌŽƉĞƌƚǇ ƚƚĂĐŚŵĞŶƚ ǀŽŝĚĂŶĐĞĂŶĚDŝŶŝŵŝǌĂƚŝŽŶ WƌŽũĞĐƚWƵƌƉŽƐĞ͕EĞĞĚ͕ĂŶĚZĞƋƵŝƌĞŵĞŶƚƐ͘ůĞĂƌůǇƐƚĂƚĞƚŚĞƉƵƌƉŽƐĞŽĨǇŽƵƌƉƌŽũĞĐƚĂŶĚŶĞĞĚĨŽƌǇŽƵƌƉƌŽũĞĐƚ͘ůƐŽŝŶĐůƵĚĞĂ ĚĞƐĐƌŝƉƚŝŽŶŽĨĂŶǇƐƉĞĐŝĨŝĐƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞƉƌŽũĞĐƚĂƐƚŚĞǇƌĞůĂƚĞƚŽƉƌŽũĞĐƚůŽĐĂƚŝŽŶ͕ƉƌŽũĞĐƚĨŽŽƚƉƌŝŶƚ͕ǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚ͕ ĂŶĚĂŶǇŽƚŚĞƌĂƉƉůŝĐĂďůĞƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂŶŽǀĞƌŚĞĂĚƉůĂŶƐŚĞĞƚƐŚŽǁŝŶŐĂůůƌĞůĞǀĂŶƚĨĞĂƚƵƌĞƐŽĨƚŚĞƉƌŽũĞĐƚ;ďƵŝůĚŝŶŐƐ͕ ƌŽĂĚƐ͕ĞƚĐ͘Ϳ͕ĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞĨĞĂƚƵƌĞƐ;ŝŵƉĂĐƚĂƌĞĂƐŶŽƚĞĚͿĂŶĚĐŽŶƐƚƌƵĐƚŝŽŶĚĞƚĂŝůƐ;ŐƌĂĚŝŶŐƉůĂŶƐ͕ƐƚŽƌŵǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚ ƉůĂŶƐ͕ĞƚĐ͘Ϳ͕ƌĞĨĞƌĞŶĐŝŶŐƚŚĞƐĞĂƐŶĞĐĞƐƐĂƌǇ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ ǀŽŝĚĂŶĐĞ͘ŽƚŚƚŚĞtĂŶĚƚŚĞtƌĞƋƵŝƌĞƚŚĂƚŝŵƉĂĐƚƐƚŽĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞƐďĞĂǀŽŝĚĞĚŝĨƉƌĂĐƚŝĐĂďůĞĂůƚĞƌŶĂƚŝǀĞƐĞǆŝƐƚ͘ ůĞĂƌůǇĚĞƐĐƌŝďĞĂůůŽŶͲƐŝƚĞŵĞĂƐƵƌĞƐĐŽŶƐŝĚĞƌĞĚƚŽĂǀŽŝĚŝŵƉĂĐƚƐƚŽĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞƐĂŶĚĚŝƐĐƵƐƐĂƚůĞĂƐƚƚǁŽƉƌŽũĞĐƚĂůƚĞƌŶĂƚŝǀĞƐ ƚŚĂƚĂǀŽŝĚĂůůŝŵƉĂĐƚƐƚŽĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞƐŽŶƚŚĞƐŝƚĞ͘dŚĞƐĞĂůƚĞƌŶĂƚŝǀĞƐŵĂǇŝŶĐůƵĚĞĂůƚĞƌŶĂƚŝǀĞƐŝƚĞƉůĂŶƐ͕ĂůƚĞƌŶĂƚĞƐŝƚĞƐ͕ĂŶĚͬŽƌ ŶŽƚĚŽŝŶŐƚŚĞƉƌŽũĞĐƚ͘ůƚĞƌŶĂƚŝǀĞƐƐŚŽƵůĚďĞĨĞĂƐŝďůĞĂŶĚƉƌƵĚĞŶƚ;ƐĞĞDEZƵůĞƐϴϰϮϬ͘ϬϱϮϬ^ƵďƉ͘ϮͿ͘ƉƉůŝĐĂŶƚƐĂƌĞĞŶĐŽƵƌĂŐĞĚ ƚŽĂƚƚĂĐŚĚƌĂǁŝŶŐƐĂŶĚƉůĂŶƐƚŽƐƵƉƉŽƌƚƚŚĞŝƌĂŶĂůǇƐŝƐ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ DŝŶŝŵŝǌĂƚŝŽŶ͘ŽƚŚƚŚĞtĂŶĚƚŚĞtƌĞƋƵŝƌĞƚŚĂƚĂůůƵŶĂǀŽŝĚĂďůĞŝŵƉĂĐƚƐƚŽĂƋƵĂƚŝĐƌĞƐŽƵƌĐĞƐďĞŵŝŶŝŵŝǌĞĚƚŽƚŚĞŐƌĞĂƚĞƐƚ ĞǆƚĞŶƚƉƌĂĐƚŝĐĂďůĞ͘ŝƐĐƵƐƐĂůůĨĞĂƚƵƌĞƐŽĨƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚƚŚĂƚŚĂǀĞďĞĞŶŵŽĚŝĨŝĞĚƚŽŵŝŶŝŵŝǌĞƚŚĞŝŵƉĂĐƚƐƚŽǁĂƚĞƌ ƌĞƐŽƵƌĐĞƐ;ƐĞĞDEZƵůĞƐϴϰϮϬ͘ϬϱϮϬ^ƵďƉ͘ϰͿ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ KĨĨͲ^ŝƚĞůƚĞƌŶĂƚŝǀĞƐ͘ŶŽĨĨͲƐŝƚĞĂůƚĞƌŶĂƚŝǀĞƐĂŶĂůǇƐŝƐŝƐŶŽƚƌĞƋƵŝƌĞĚĨŽƌĂůůƉĞƌŵŝƚĂƉƉůŝĐĂƚŝŽŶƐ͘/ĨǇŽƵŬŶŽǁƚŚĂƚǇŽƵƌƉƌŽƉŽƐĂů ǁŝůůƌĞƋƵŝƌĞĂŶŝŶĚŝǀŝĚƵĂůƉĞƌŵŝƚ;ƐƚĂŶĚĂƌĚƉĞƌŵŝƚŽƌůĞƚƚĞƌŽĨƉĞƌŵŝƐƐŝŽŶͿĨƌŽŵƚŚĞh͘^͘ƌŵǇŽƌƉƐŽĨŶŐŝŶĞĞƌƐ͕ǇŽƵŵĂǇďĞ ƌĞƋƵŝƌĞĚƚŽƉƌŽǀŝĚĞĂŶŽĨĨͲƐŝƚĞĂůƚĞƌŶĂƚŝǀĞƐĂŶĂůǇƐŝƐ͘dŚĞĂůƚĞƌŶĂƚŝǀĞƐĂŶĂůǇƐŝƐŝƐŶŽƚƌĞƋƵŝƌĞĚĨŽƌĂĐŽŵƉůĞƚĞĂƉƉůŝĐĂƚŝŽŶďƵƚŵƵƐƚ ďĞƉƌŽǀŝĚĞĚĚƵƌŝŶŐƚŚĞƌĞǀŝĞǁƉƌŽĐĞƐƐŝŶŽƌĚĞƌĨŽƌƚŚĞŽƌƉƐƚŽĐŽŵƉůĞƚĞƚŚĞĞǀĂůƵĂƚŝŽŶŽĨǇŽƵƌĂƉƉůŝĐĂƚŝŽŶĂŶĚƌĞĂĐŚĂĨŝŶĂů ĚĞĐŝƐŝŽŶ͘ƉƉůŝĐĂŶƚƐǁŝƚŚƋƵĞƐƚŝŽŶƐĂďŽƵƚǁŚĞŶĂŶŽĨĨͲƐŝƚĞĂůƚĞƌŶĂƚŝǀĞƐĂŶĂůǇƐŝƐŝƐƌĞƋƵŝƌĞĚƐŚŽƵůĚĐŽŶƚĂĐƚƚŚĞŝƌŽƌƉƐWƌŽũĞĐƚ DĂŶĂŐĞƌ͘ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ DŝŶŶĞƐŽƚĂ/ŶƚĞƌĂŐĞŶĐǇtĂƚĞƌZĞƐŽƵƌĐĞƉƉůŝĐĂƚŝŽŶ&Žƌŵ&ĞďƌƵĂƌǇϮϬϭϰWĂŐĞϲŽĨϵ 3DFNHW3J 'F WƌŽũĞĐƚEĂŵĞĂŶĚͬŽƌEƵŵďĞƌ͗'<ΘZ:WƌŽƉĞƌƚǇ ƚƚĂĐŚŵĞŶƚ ZĞƉůĂĐĞŵĞŶƚͬŽŵƉĞŶƐĂƚŽƌǇDŝƚŝŐĂƚŝŽŶ ŽŵƉůĞƚĞƚŚŝƐƉĂƌƚŝĨǇŽƵƌĂƉƉůŝĐĂƚŝŽŶŝŶǀŽůǀĞƐǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚͬĐŽŵƉĞŶƐĂƚŽƌǇŵŝƚŝŐĂƚŝŽŶŶŽƚĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞůŽĐĂůƌŽĂĚ ǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚƉƌŽŐƌĂŵ͘ƉƉůŝĐĂŶƚƐƐŚŽƵůĚĐŽŶƐƵůƚŽƌƉƐŵŝƚŝŐĂƚŝŽŶŐƵŝĚĞůŝŶĞƐĂŶĚtƌƵůĞƐĨŽƌƌĞƋƵŝƌĞŵĞŶƚƐ͘ ZĞƉůĂĐĞŵĞŶƚͬŽŵƉĞŶƐĂƚŽƌǇDŝƚŝŐĂƚŝŽŶǀŝĂtĞƚůĂŶĚĂŶŬŝŶŐ͘ŽŵƉůĞƚĞƚŚŝƐƐĞĐƚŝŽŶŝĨǇŽƵĂƌĞƉƌŽƉŽƐŝŶŐƚŽƵƐĞĐƌĞĚŝƚƐĨƌŽŵĂŶ ĞǆŝƐƚŝŶŐǁĞƚůĂŶĚďĂŶŬ;ǁŝƚŚĂŶĂĐĐŽƵŶƚŶƵŵďĞƌŝŶƚŚĞ^ƚĂƚĞǁĞƚůĂŶĚďĂŶŬŝŶŐƐǇƐƚĞŵͿĨŽƌĂůůŽƌƉĂƌƚŽĨǇŽƵƌ ƌĞƉůĂĐĞŵĞŶƚͬĐŽŵƉĞŶƐĂƚŽƌǇŵŝƚŝŐĂƚŝŽŶƌĞƋƵŝƌĞŵĞŶƚƐ͘ ĂŶŬ tĞƚůĂŶĚĂŶŬDĂũŽƌƌĞĚŝƚdǇƉĞ ŽƵŶƚǇ^ĞƌǀŝĐĞEƵŵďĞƌŽĨƌĞĚŝƚƐ ĐĐŽƵŶƚηtĂƚĞƌƐŚĞĚη;ŝĨĂƉƉůŝĐĂďůĞͿ ƌĞĂη ƉƉůŝĐĂŶƚƐƐŚŽƵůĚĂƚƚĂĐŚĚŽĐƵŵĞŶƚĂƚŝŽŶŝŶĚŝĐĂƚŝŶŐƚŚĂƚƚŚĞǇŚĂǀĞĐŽŶƚĂĐƚĞĚƚŚĞǁĞƚůĂŶĚďĂŶŬĂĐĐŽƵŶƚŽǁŶĞƌĂŶĚƌĞĂĐŚĞĚĂƚ ůĞĂƐƚĂƚĞŶƚĂƚŝǀĞĂŐƌĞĞŵĞŶƚƚŽƵƚŝůŝǌĞƚŚĞŝĚĞŶƚŝĨŝĞĚĐƌĞĚŝƚƐĨŽƌƚŚĞƉƌŽũĞĐƚ͘dŚŝƐĚŽĐƵŵĞŶƚĂƚŝŽŶĐŽƵůĚďĞĂƐŝŐŶĞĚƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚ͕ƐŝŐŶĞĚĂƉƉůŝĐĂƚŝŽŶĨŽƌǁŝƚŚĚƌĂǁĂůŽĨĐƌĞĚŝƚƐŽƌƐŽŵĞŽƚŚĞƌĐŽƌƌĞƐƉŽŶĚĞŶĐĞŝŶĚŝĐĂƚŝŶŐĂŶĂŐƌĞĞŵĞŶƚďĞƚǁĞĞŶƚŚĞ ,ŽǁĞǀĞƌ͕ĂƉƉůŝĐĂŶƚƐĂƌĞĂĚǀŝƐĞĚŶŽƚƚŽĞŶƚĞƌŝŶƚŽĂďŝŶĚŝŶŐĂŐƌĞĞŵĞŶƚƚŽƉƵƌĐŚĂƐĞĐƌĞĚŝƚƐƵŶƚŝůƚŚĞ ĂƉƉůŝĐĂŶƚĂŶĚƚŚĞďĂŶŬŽǁŶĞƌ͘ ŵŝƚŝŐĂƚŝŽŶƉůĂŶŝƐĂƉƉƌŽǀĞĚďǇƚŚĞŽƌƉƐĂŶĚ>'h͘ WƌŽũĞĐƚͲ^ƉĞĐŝĨŝĐZĞƉůĂĐĞŵĞŶƚͬWĞƌŵŝƚƚĞĞZĞƐƉŽŶƐŝďůĞDŝƚŝŐĂƚŝŽŶ͘ŽŵƉůĞƚĞƚŚŝƐƐĞĐƚŝŽŶŝĨǇŽƵĂƌĞƉƌŽƉŽƐŝŶŐƚŽƉƵƌƐƵĞĂĐƚŝŽŶƐ ;ƌĞƐƚŽƌĂƚŝŽŶ͕ĐƌĞĂƚŝŽŶ͕ƉƌĞƐĞƌǀĂƚŝŽŶ͕ĞƚĐ͘ͿƚŽŐĞŶĞƌĂƚĞǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚͬĐŽŵƉĞŶƐĂƚŽƌǇŵŝƚŝŐĂƚŝŽŶĐƌĞĚŝƚƐĨŽƌƚŚŝƐƉƌŽƉŽƐĞĚ ƉƌŽũĞĐƚ͘ ŽƌƉƐDŝƚŝŐĂƚŝŽŶĂŶŬ tĐƚŝŽŶůŝŐŝďůĞƌĞĚŝƚйƌĞĚŝƚƐDĂũŽƌ ŽŵƉĞŶƐĂƚŝŽŶĐƌĞƐŽƵŶƚǇ^ĞƌǀŝĐĞ ϭϯ ĨŽƌƌĞĚŝƚZĞƋƵĞƐƚĞĚŶƚŝĐŝƉĂƚĞĚtĂƚĞƌƐŚĞĚη Ϯ dĞĐŚŶŝƋƵĞƌĞĂη ϯϭϬ͘ϭϲϭϬϬϬ͘ϭϲKůŵƐƚĞĚϰϭϴ ϭ ZĞĨĞƌƚŽƚŚĞŶĂŵĞĂŶĚƐƵďƉĂƌƚŶƵŵďĞƌŝŶDEZƵůĞϴϰϮϬ͘ϬϱϮϲ͘ Ϯ ^ƚ͘WĂƵůŝƐƚƌŝĐƚWŽůŝĐǇĨŽƌtĞƚůĂŶĚŽŵƉĞŶƐĂƚŽƌǇDŝƚŝŐĂƚŝŽŶŝŶDŝŶŶĞƐŽƚĂ ZĞĨĞƌƚŽƚŚĞƚĞĐŚŶŝƋƵĞůŝƐƚĞĚŝŶ͘ ϯ /ĨtĂŶĚŽƌƉƐĐƌĞĚŝƚŝŶŐĚŝĨĨĞƌƐ͕ƚŚĞŶĞŶƚĞƌďŽƚŚŶƵŵďĞƌƐĂŶĚĚŝƐƚŝŶŐƵŝƐŚǁŚŝĐŚŝƐŽƌƉƐĂŶĚǁŚŝĐŚŝƐt͘ ǆƉůĂŝŶŚŽǁĞĂĐŚƉƌŽƉŽƐĞĚĂĐƚŝŽŶŽƌƚĞĐŚŶŝƋƵĞǁŝůůďĞĐŽŵƉůĞƚĞĚ;Ğ͘Ő͘ǁĞƚůĂŶĚŚǇĚƌŽůŽŐǇǁŝůůďĞƌĞƐƚŽƌĞĚďǇďƌĞĂŬŝŶŐƚŚĞƚŝůĞ͙͙Ϳ ĂŶĚŚŽǁƚŚĞƉƌŽƉŽƐĂůŵĞĞƚƐƚŚĞĐƌĞĚŝƚŝŶŐĐƌŝƚĞƌŝĂĂƐƐŽĐŝĂƚĞĚǁŝƚŚŝƚ͘ƉƉůŝĐĂŶƚƐƐŚŽƵůĚƌĞĨĞƌƚŽƚŚĞŽƌƉƐŵŝƚŝŐĂƚŝŽŶƉŽůŝĐǇ ůĂŶŐƵĂŐĞ͕tƌƵůĞůĂŶŐƵĂŐĞ͕ĂŶĚĂůůĂƐƐŽĐŝĂƚĞĚŽƌƉƐĂŶĚtŐƵŝĚĂŶĐĞƌĞůĂƚĞĚƚŽƚŚĞĂĐƚŝŽŶŽƌƚĞĐŚŶŝƋƵĞ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ ƚƚĂĐŚĂƐŝƚĞůŽĐĂƚŝŽŶŵĂƉ͕ƐŽŝůƐŵĂƉ͕ƌĞĐĞŶƚĂĞƌŝĂůƉŚŽƚŽŐƌĂƉŚ͕ĂŶĚĂŶǇŽƚŚĞƌŵĂƉƐƚŽƐŚŽǁƚŚĞůŽĐĂƚŝŽŶĂŶĚŽƚŚĞƌƌĞůĞǀĂŶƚ ĨĞĂƚƵƌĞƐŽĨĞĂĐŚǁĞƚůĂŶĚƌĞƉůĂĐĞŵĞŶƚͬŵŝƚŝŐĂƚŝŽŶƐŝƚĞ͘ŝƐĐƵƐƐŝŶĚĞƚĂŝůĞǆŝƐƚŝŶŐǀĞŐĞƚĂƚŝŽŶ͕ĞǆŝƐƚŝŶŐůĂŶĚƐĐĂƉĞĨĞĂƚƵƌĞƐ͕ůĂŶĚƵƐĞ ;ŽŶĂŶĚƐƵƌƌŽƵŶĚŝŶŐƚŚĞƐŝƚĞͿ͕ĞǆŝƐƚŝŶŐƐŽŝůƐ͕ĚƌĂŝŶĂŐĞƐǇƐƚĞŵƐ;ŝĨƉƌĞƐĞŶƚͿ͕ĂŶĚǁĂƚĞƌƐŽƵƌĐĞƐĂŶĚŵŽǀĞŵĞŶƚ͘/ŶĐůƵĚĞĂ ƚŽƉŽŐƌĂƉŚŝĐŵĂƉƐŚŽǁŝŶŐŬĞǇĨĞĂƚƵƌĞƐƌĞůĂƚĞĚƚŽŚǇĚƌŽůŽŐǇĂŶĚǁĂƚĞƌĨůŽǁ;ŝŶůĞƚƐ͕ŽƵƚůĞƚƐ͕ĚŝƚĐŚĞƐ͕ƉƵŵƉƐ͕ĞƚĐ͘Ϳ͗ ^ĞĞƚƚĂĐŚĞĚZĞƉŽƌƚ DŝŶŶĞƐŽƚĂ/ŶƚĞƌĂŐĞŶĐǇtĂƚĞƌZĞƐŽƵƌĐĞƉƉůŝĐĂƚŝŽŶ&Žƌŵ&ĞďƌƵĂƌǇϮϬϭϰWĂŐĞϳŽĨϵ 3DFNHW3J 'F 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 76 (6 $ G 3DFNHW3J HH 'D QK W L D \ W I J Q L W Q R R L F QQ V V V Q H HV O U H D V U R O O F LH D U 3 0 H U U G H Y H 1 D G W O L L S Q UH 5 3 0 6 R W V H S V U P D QH J 6<: + P RW O 2 V H L VH V U V / K L H K L F P W W VR Q R H 5 :6( 9$ L K U K R F W( I LR Z6 H 5 H O G E Y Q L L U V X (9$ :6 ' Q R :65 '(6 ,535( 71( R I V 'F 523' 2&+(67(5/067('/$11,1*(3$570(17 &DPSXV'ULYH6(6XLWH5RFKHVWHU01V $HULDO3KRWRRIWKH6LWH %RXOHYDUG7UHH*UHHQ)DFLOLWLHV$JUHHPHQW 3ODQWLQJ3ODQ 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ UHF\FOHGSDSHU x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³$JUHHPHQW´ LVHQWHUHGLQWRE\DQGEHWZHHQ ,QGHSHQGHQW6FKRRO'LVWULFW1R ³'LVWULFW´ DQGWKH&LW\RI5RFKHVWHU ³&LW\´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³$GGLWLRQDOVHUYLFH V´ DPHDQVHUYLFHVWKDWDSHDFHRIILFHUSURYLGHVDWWKH 'LVWULFW¶VUHTXHVWRXWVLGHWKHUHJXODUKRXUVRI3/2VHUYLFHWKDWDUHGHVFULEHGLQ WKHWKLUGQXPEHUHGSDUDJUDSKRIWKLV$JUHHPHQW%\ZD\RIH[DPSOHEXWZLWKRXW OLPLWDWLRQD3/2SHUIRUPVDGGLWLRQDOVHUYLFHVLIDWWKHUHTXHVWRIDVFKRRO DGPLQLVWUDWRURU'LVWULFWDGPLQLVWUDWRUWKH3/2DWWHQGVDVFKRROERDUGPHHWLQJ DQH[WUDFXUULFXODUDFWLYLW\RUDFRPPXQLW\IXQFWLRQWKDWLVKHOGLQWKHHYHQLQJ ([LJHQWFLUFXPVWDQFHV´ E³PHDQFLUFXPVWDQFHVXQGHUZKLFKWKHFRXUWVSHUPLW SROLFHRIILFHUVWRH[HFXWHDZDUUDQWOHVVVHDUFKRUVHL]XUHFLUFXPVWDQFHVXQGHU ZKLFKDUHDVRQDEOHSROLFHRIILFHUZRXOGEHOLHYHWKDWDSHUVRQSUHVHQWVDQ LPPHGLDWHDQGVXEVWDQWLDOULVNRIKDUPWRVHOIRURWKHUVFLUFXPVWDQFHVXQGHU ZKLFKXUJHQWDFWLRQLVUHDVRQDEO\QHFHVVDU\LQRUGHUWRSUHYHQWWKHGHVWUXFWLRQRI HYLGHQFHRIDVHULRXVFULPHDQGFLUFXPVWDQFHVLQZKLFKDSROLFHRIILFHULVLQKRW SXUVXHRIDVXVSHFWZKRLVEHOLHYHGWRKDYHFRPPLWWHGRUWRKDYHDWWHPSWHGWR FRPPLWDVHULRXVFULPHDQGLVLQWKHSURFHVVRIIOHHLQJ ³3ROLFHOLDLVRQRIILFHU´³3/2´ FRUPHDQVDOLFHQVHGSHDFHRIILFHUZKRLV HPSOR\HGE\WKH&LW\DQGLVDVVLJQHGWRSURYLGH3/2GXWLHVRUDGGLWLRQDOVHUYLFHV SXUVXDQWWRWKLV$JUHHPHQW 3DFNHW3J 'D ³3/2GXWLHV´ GLQFOXGHEXWDUHQRWQHFHVVDULO\OLPLWHGWRWKHIROORZLQJ x SURWHFWLQJSHUVRQVZKRDUHSUHVHQWRQVFKRROSURSHUW\RUDWDVFKRRO VSRQVRUHGHYHQWRUDFWLYLW\ x SURWHFWLQJUHDODQGSHUVRQDOSURSHUW\ x GHWHUULQJDQGDGGUHVVLQJWUXDQF\ x VHUYLQJDVDUROHPRGHOIRUVWXGHQWVSDUHQWVDQGFRPPXQLW\PHPEHUV x FRQIHUULQJZLWKVWXGHQWVSDUHQWVDQGFRPPXQLW\PHPEHUVIRUWKHSXUSRVHRI GHWHUULQJRUDGGUHVVLQJFULPLQDOEHKDYLRURQVFKRROSURSHUW\RUDWDVFKRRO VSRQVRUHGHYHQWRUDFWLYLW\ x LGHQWLI\LQJDQGDGYLVLQ JRQVHFXULW\YXOQHUDELOLWLHVLQWKH'LVWULFW¶VVFKRROV x YLVLWLQJDQGLQVSHFWLQJKLJKGHOLQTXHQF\DUHDVRQVFKRROSURSHUW\ x EHLQJSUHVHQWDQGYLVLEOHRQVFKRROSURSHUW\ x GHWHUULQJDOOIRUPVRIFULPLQDODFWLYLW\RQVFKRROSURSHUW\DQGDWVFKRRO VSRQVRUHGHYHQWVDQGDFWLYLWLHV x VHUYLQJDVDUHVRXUFHIRUVFKRRORIILFLDOVUHJDUGLQJWKHSUHYHQWLRQRIFULPLQDO DFWLYLW\RQVFKRROSURSHUW\DQGDWVFKRROVSRQVRUHGHYHQWVDQGDFWLYLWLHV x VHUYLQJDVDPHQWRUDQGUHVRXUFHIRUVWXGHQWV x JLYLQJSUHVHQWDWLRQVWRVWXGHQWVDQGVWDIIWKDWDUHGHVLJQHGWRSURPRWHVDIHW\ RUWRGHWHUGHFUHDVHRURWKHUZLVHDGGUHVVGUXJXVHRURWKHUSRWHQWLDOFULPLQDO DFWLYLW\E\VWXGHQWV x LQYHVWLJDWLQJDQGRWKHUZLVHDGGUHVVLQJFULPLQDODFWLYLW\WKDWKDVRFFXUUHGLV DOOHJHGWRKDYHRFFXUUHGPD\KDYHRFFXUUHGRULVH[SHFWHGWRRFFXURQ VFKRROSURSHUW\RUDWDVFKRROVSRQVRUHGHYHQWRUDFWLYLW\ x FRQGXFWLQJVHDUFKHVRIVWXGHQWVVWXGHQWORFNHUVVWXGHQWEDFNSDFNVVFKRRO SURSHUW\DQGVWXGHQWYHKLFOHVDVDXWKRUL]HGE\ODZDQGDWWKHUHTXHVWRID VFKRRORIILFLDOZKHQWKHVFKRRORIILFLDOKDVUHDVRQDEOHJURXQGVWREHOLHYHWKH VHDUFKZLOOUHVXOWLQWKHGLVFRYHU\RIGUXJVDZHDSRQRUDQ\RWKHULWHPWKDWLV XQODZIXOIRUDVWXGHQWWRSRVVHVVRQVFKRROSURSHUW\RUWKHGLVFRYHU\RIRWKHU HYLGHQFHHVWDEOLVKLQJWKDWDVWXGHQWKDVFRPPLWWHGDFULPHWKDWKDVDGLUHFW QH[XVWRVFKRROSURSHUW\RUDVFKRROVSRQVRUHGHYHQWRUDFWLYLW\ x UHFRYHULQJORVWRUVWROHQSURSHUW\ x HQIRUFLQJDOOFULPLQDOODZVRQVFKRROSURSHUW\DQGDWVFKRROVSRQVRUHGHYHQWV DQGDFWLYLWLHV x DSSUHKHQGLQJDQGSURVHFXWLQJFULPLQDOVLQFOXGLQJVXVSHFWHGFULPLQDOV x UHVSRQGLQJWRHPHUJHQFLHVLQFOXGLQJEXWQRWOLPLWHGWRPHGLFDOHPHUJHQFLHV DQGVLWXDWLRQVLQYROYLQJDWKUHDWRIYLROHQFHRUKDUPWRSURSHUW\RUWRDQ\ SHUVRQZKRLVRQVFKRROSURSHUW\RULVDWDVFKRROVSRQVRUHGHYHQWRUDFWLYLW\ x DWWHQGLQJWUDLQLQJVSURYLGHGE\WKH'LVWULFW x PHHWLQJDQGFROODERUDWLQJZLWKVFKRRODGPLQLVWUDWRUVDQG'LVWULFW DGPLQLVWUDWRUVWRGHYHORSDQGZRUNWRZDUGPXWXDOO\DJUHHGXSRQJRDOVDQG x RWKHUWDVNVDVDVVLJQHGE\WKH5RFKHVWHU3ROLFH'HSDUWPHQW ³6FKRROGD\´ HPHDQVDGD\RQZKLFKVFKRROLVLQVHVVLRQDQGJHQHUDOVWXGHQW DWWHQGDQFHLVUHTXLUHGLQFOXGLQJDQ\PDNHXSGD\VWKDWDUHVFKHGXOHGEHFDXVH VFKRROZDVFDQFHOHGIRUDQ\UHDVRQ6FKRROGD\VDUHLGHQWLILHGRQWKH'LVWULFW 3DJHRI 'D FDOHQGDUZKLFKLVSXEOLVKHGRQWKH'LVWULFW¶VZHEVLWH'D\VRQZKLFKVWXGHQWV DWWHQGVXPPHUVFKRRODUHQRWVFKRROGD\V ³6FKRROS URSHUW\´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³$/&´ $OWKRXJKVWDWLRQHGDWDSDUWLFXODUVFKRROHDFK3/2LVH[SHFWHGWRSHUIRUP 3/2GXWLHVDWWKH'LVWUL FW¶VRWKHUVFKRROVDVQHHGHG $EVHQFHV D,ID3/2LVDEVHQWIRUPRUHWKDQFRQVHFXWLYHVFKRROGD\VWKH&LW\ ZLOOXQGHUWDNHUHDVRQDEOHHIIRUWVWRDVVLJQDQRWKHUOLFHQVHGSHDFHRIILFHUWRVHUYH DVDWHPSRUDU\UHSODFHPHQWDQGSHUIRUPWKHUHJXODU3/2¶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¶VSHUIRUPDQFHW KH 'LVWULFWZLOOQRWLI\WKH&DSWDLQ,Q&KDUJHRI,QYHVWLJDWLRQV$Q\UHTXHVWIRU UHDVVLJQPHQWRID3/2WKDWLVEDVHGRQZRUNUHODWHGFRQFHUQVPXVWEHPDGHLQ ZULWLQJWRWKH3/2VHUJHDQWRUWKH&DSWDLQLQ&KDUJHRI,QYHVWLJDWLRQV7KH&LW\ ZLOOKDYHWKLUW\ FDOHQGDUGD\VWRGHPRQVWUDWHWRWKH'LVWULFW¶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³DGGLWLRQDOVHUYLFH V´DV GHILQHGLQWKLV$JUHHPHQW7KH&LW\ZLOOPDNHUHDVRQDEOHHIIRUWVWRDFFRPPRGDWHVXFK UHTXHVWV:KHQWKH&LW\DVVLJQVDQRIILFHUWRSURYLGHDGGLWLRQDOVHUYLFHVWKH'LVWULFWZLOO EHUHVSRQVLEOHIRUSD\LQJWKHRIILFHU¶VZDJHVIRUWKHKRXUVZRUNHGZKLOHSURYLGLQJ DGGLWLRQDOVHUYLFHVDQ\UHVXOWLQJRYHUWLPHFRVWVDSURUDWHGSRUWLRQRIWKHRIILFHU¶V EHQHILWVIRUWKHKRXUVZRUNHGZKLOHSURYLGLQJDGGLWLRQDOVHUYLFHVDQGWKHRIILFHU¶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¶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¶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¶V&KLHIRI3ROLFH5RJHU/3HWHUVRQDW WK USHWHUVRQ#URFKHVWHUPQJRYRU6WUHHW6(5RFKHVWHU017KH&LW\PXVW SURYLGHDOORIILFLDOQRWLFHVXQGHUWKLV$JUHHPHQWE\HOHFWURQLFPDLORU860DLO DGGUHVVHGWRWKH'LVWULFW¶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¶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ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨĂƚĂůŝŶĂZŝĚŐĞĨŽƌͲ KŽŶƚƌĂĐƚ:ϱϭϮϰ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐƚŚĞĂƚĂůŝŶĂZŝĚŐĞͲ KŽŶƚƌĂĐƚ:ϱϭϮϰ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¶V UHVSRQVLELOLW\IRUILHOGYHULI\LQJHOHYDWLRQVORFDWLRQV GLPHQVLRQVHWFWRFRQGXFWGHWDLOHGGHVLJQ 7KH&LW\RI5RFKHVWHUVSHFLILFDOO\GLVFODLPVDOOZDUUDQWLHV H[SUHVVRULPSOLHGLQFOXGLQJEXWQRWOLPLWHGWRLPSOLHG ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨĂƐƐŝĚǇZŝĚŐĞĨŽƌͲKŽŶƚƌĂĐƚ:ϱϰϬϵ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐƚŚĞĂƐƐŝĚǇZŝĚŐĞͲKŽŶƚƌĂĐƚ:ϱϰϬϵ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨdŚŝŶŬDƵƚƵĂůĂŶŬ;'ƌĞĞŶDĞĂĚŽǁƐͿĨŽƌͲKŽŶƚƌĂĐƚ:ϱϰϭϱ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐƚŚĞdŚŝŶŬDƵƚƵĂůĂŶŬ;'ƌĞĞŶDĞĂĚŽǁƐͿͲKŽŶƚƌĂĐƚ:ϱϰϭϱ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨ'ĂŐĞĂƐƚƉĂƌƚŵĞŶƚƐĨŽƌͲKŽŶƚƌĂĐƚ:ϱϰϭϭ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐƚŚĞ'ĂŐĞĂƐƚƉĂƌƚŵĞŶƚƐͲKŽŶƚƌĂĐƚ:ϱϰϭϭ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨ<ĂƐĐĂĚĞWůĂĐĞƉĂƌƚŵĞŶƚƐĨŽƌͲ KŽŶƚƌĂĐƚ:ϱϰϬϯ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐƚŚĞ<ĂƐĐĂĚĞWůĂĐĞƉĂƌƚŵĞŶƚƐͲ KŽŶƚƌĂĐƚ:ϱϰϬϯ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o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·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·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·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ô SHUPRQWKRIDQ\XQSDLGEDODQFHRIWKHLQYRLFH 2:1(56+,32)'2&80(176 $OOGRFXPHQWVSUHSDUHGRUSURYLGHGE\:$/.(5DUHDQGUHPDLQWKHSURSHUW\RI:$/.(5DV LQVWUXPHQWVRIVHUYLFH$Q\XVHIRUPRGLILFDWLRQVRUH[WHQVLRQVRIWKLVZRUNIRUQHZSURMHFWVRU IRUFRPSOHWLRQRIWKLVSURMHFWE\RWKHUVZLWKRXW:$/.(5·VVSHFLILFZULWWHQFRQVHQWZLOOEHDW &/,(17·VVROHULVN 67$1'$5'2)&$5( :$/.(5ZLOOSHUIRUPWKHVHUYLFHVFDOOHGIRULQWKHDWWDFKHGOHWWHUDQGWKLVDJUHHPHQWLQ DFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGVWDQGDUGVRIWKHSURIHVVLRQ1RRWKHUZDUUDQW\H[SUHVV RULPSOLHGLVPDGH:$/.(5·VOLDELOLW\WR&/,(17DQGDOOSHUVRQVSURYLGLQJZRUNRUPDWHUL DOVWR WKLVSURMHFWDVDUHVXOWRIDFWVHUURUVRURPLVVLRQVRI:$/.(5VKDOOEHOLPLWHGWRWKHIHHRU ZKLFKHYHULVJUHDWHU $Q\HVWLPDWHVRUSURMHFWLRQVSURYLGHGE\:$/.(5ZLOOEHSUHPLVHGLQSDUWXSRQDVVXPSWLRQV SURYLGHGE\WKH&/,(17:$/.(5ZLOOQRWLQGHSHQGHQWO\LQYHVWLJDWHWKHDFFXUDF\RIWKH DVVXPSWLRQV%HFDXVHRIWKHLQKHUHQWXQFHUWDLQW\DQGSUREDEOHYDULDWLRQRIWKHDVVXPSWLRQV DFWXDOUHVXOWVZLOOYDU\IURPHVWLPDWHGRUSURMHFWHGUHVXOWVDQGVXFKYDULDWLRQVPD\EHPDWHULDO $VVXFK:$/.(5PDNHVQRZDUUDQW\RUUHSUHVHQWDWLRQH[SUHVVRULPSOLHGDVWRWKHDFFXUDF\ RIWKHHVWLPDWHVRUSURMHFWLRQV 3(5,2'2)6(59,&( 6HUYLFHVVKDOOEHFRPSOHWHWKHHDUOLHURI WKHGDWHZKHQILQDOGRFXPHQWVDUHDFFHSWHGE\ WKH&/,(17RU WKLUW\ GD\VDIWHUILQDOGRFXPHQWVDUHGHOLYHUHGWRWKH&/,(17 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( ( 5(48(67)25&281&,/$&7,21 0((7,1*'$7( IRUZKLFKWKH&LW\ZLOOJHWFUHGLWIRUDV SDUWRILWVORFDOPDWFKLQJFRQWULEXWLRQ 6HFWLRQ 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (D ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( )ULGD\ $PHQGSDUDJUDSKRI6HFWLRQ%³1R3DUNLQJ=RQHV´RIWKH&RPSUHKHQVLYH7UDIILFDQG 3DUNLQJ5HVROXWLRQV [[1242,2525,1265,2559][7][,I,][Arial]]WK [[1598,2525,1621,2559][7][,I,][Arial]]WK VWWKWK 6W6:RQWKHVRXWKVLGHIURP$YH[[1140,2529,1242,2582][11][,I,][Arial]]WR [[1266,2529,1279,2582][11][,I,][Arial]] [[1278,2529,1599,2582][11][,I,][Arial]]$YH6:DQG [[1622,2529,1635,2582][11][,I,][Arial]] [[1634,2529,1714,2582][11][,I,][Arial]]$YH [[1714,2529,1727,2581][11][,,][Arial]] [[1727,2529,1829,2581][11][,,][Arial]]WR [[1853,2529,1866,2581][11][,,] [Arial]] [[1866,2529,2252,2581][11][,,][Arial]]$YH6: 3DFNHW3J )D )E ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( )D )W1RWLILFDWLRQ$UHDRI OO 9DFDWLRQ3HWLWLRQ59$&E\7KLQN0XWXDO%DQNWRYDFDWHDXWLOLW\HDVHPHQW GHGLFDWHGLQRYHUDSRUWLRQRI/RW%ORFN*UHHQ0HDGRZV)LIWK6XEGLYLVLRQ WRDOORZIRUWKHUHFRQVWUXFWLRQRIDSDUNLQJORW7KHSURSHUW\LVORFDWHGDW*UHHQYLHZ'ULYH6: 9DFDWLRQ$UHD /HJHQG &HQWHUOLQHV 9DFDWLRQ3RO\JRQV 59$&BSDUFHO 59$&B3DUFHOBIWBEXIIHU )HHW 3DUFHOV q 7KLVPDSSUHSDUHGE\WKH*,6'LYLVLRQ5RFKHVWHU2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW2OPVWHG&RXQW\LVQRWUHVSRQVLEOHIRU RPPLVVLRQVRUHUURUVFRQWDLQHGKHUHLQ,IGLVFUHSDQFLHVDUHIRXQGZLWKLQWKLVPDSSOHDVHQRWLI\WKH*,6'LYLVLRQ5RFKHVWHU 2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW&DPSXV'ULYH6(5RFKHVWHU01 )E 3DFNHW3J )E 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( UYDWLRQDQGWHUPVIRUIXWXUHGHGLFDWLRQRI52:IRULQWHUVHFWLRQLPSURYHPHQWVDW6XSHULRU'U1: WK 6W1:VKRUWWHUPUHVHUYDWLRQRIò52:QHFHVVDU\IRUH[WHQGLQJ$YH1:VWRUPZDWHUPDQDJHPHQW WK REOLJDWLRQVSHGHVWULDQIDFLOLW\REOLJDWLRQVWKHH[WHQVLRQRISXEOLFXWLOLWLHVDQGWHUPVIRUSD\PHQWRI GHYHORSPHQWUHODWHGFKDUJHV &281&,/$&7,215(48(67(' [[285,2676,2352,2733][12][B,I,][Arial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHD [[285,2733,875,2790][12][B,I,][Arial]]UHVROXWLRQZLWKILQGLQJVV [[875,2733,1444,2790][12][B,I,][Arial]]XSSRUWLQJWKHLUGHFLVLRQ [[1445,2737,1458,2789][11][B,I,][Arial]] 3DFNHW3J )D IW1RWLILFDWLRQ$UHDRI )LQDO3ODW53/$7WREHNQRZQDV&UHHNVLGH6XEGLYLVLRQ7KH 3ODWSURSRVHVWRVXEGLYLGHWZREORFNVVL[ORWVDQG2XWORWIRUGHYHORSPHQW7KH SURSHUW\LVORFDWHGVRXWK6W1:DQGZHVWRI:HVW&LUFOH'ULYH1: U1: RORJ\' 7HFKQ : 6W1 WWDQ\ 6W1 6W1: 6,7( + HULW DJH 3O 1: : 1 H Y $ 6W1: 6W /HJHQG &LW\/LPLWV &HQWHUOLQHV 5LYHUV 52:B3DUFHOVB%XIIHUIW 53/$7B3DUFHOV %OGJB)ORRUVB%XIIHUIW 3DUFHOVB%XIIHUIW )HHW 3DUFHOV 5DLOURDG q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rial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHD [[285,649,1161,706][12][B,I,][Arial]]UHVROXWLRQZLWKILQGLQJVVXSSRUWLQJWK [[1162,649,1445,706][12][B,I,][Arial]]HLUGHFLVLRQ [[1445,653,1458,705][11][B,I,][Arial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ϭϰEŽƌƚŚ͕ OLDELOLW\ E\ WKHVH 1RWDU\3XEOLF2OPVWHG&RXQW\0LQQHVRWD +DYHFDXVHGWKHVDPHWREHVXUYH\HGDQGSODWWHGDV&$66,'<5,'*(DQGGRKHUHE\GRQDWHDQGGHGLFDWHWR ZĂŶŐĞ BBB ϴϵĐĞŶƚƌĂů ƚŚĞŶĐĞƐŽƵƚŚĞƌůǇƚŽϭϰϮϬƚŚĞŶĐĞƚŚĞŶĐĞƐĞĐŽŶĚƐϭϳϴƚŚĞŶĐĞϮϬϲϯϲŽƵŶƚǇϰϬ^ŽƵƚŚǁĞƐƚ ĞĂƐƚŽƵŶƚǇ͕ŽŶƚŚĞ,/>>^ŽĨƌŝŐŚƚ ŶŽƌƚŚĞƌůǇŶŽƌƚŚĞƌůǇĂǌŝŵƵƚŚĂǌŝŵƵƚŚYƵĂƌƚĞƌ͕ǁĞƐƚYƵĂƌƚĞƌ͕ĂǌŝŵƵƚŚůŝŶĞ WKHSXEOLFIRUSXEOLFXVHIRUHYHUWKHSXEOLFZD\VDQGDOVRGHGLFDWHWKHHDVHPHQWVDVVKRZQRQWKLVSODWIRU ϭϬϳ FDXVHG ĂĐĐŽƌĚŝŶŐ OLPLWHG ƌŝŐŚƚ ůŝŶĞŽĨĞĂƐƚĞƌůǇ ŵŝŶƵƚĞƐŵŝŶƵƚĞƐ ŵŝŶƵƚĞƐ ŶŽƌƚŚĞĂƐƚĞƌůǇϱϬĚĞŐƌĞĞƐϬϭŵŝŶƵƚĞϱϱƐĞĐŽŶĚƐĂǌŝŵƵƚŚϭϵϴ͘ϬϭĨĞĞƚƚŽƚŚĞƉŽŝŶƚŽĨďĞŐŝŶŶŝŶŐ͘ ĂůŽŶŐ ƐŽƵƚŚĞƌůǇ ƐŽƵƚŚǁĞƐƚĞƌůǇ ǁĞƐƚ ƚŚĞ EŽƌƚŚ͕ ƚŚĞ ŶŽƌƚŚĞƌůǇ DKZZ/^ ĂŶŐůĞ 0\&RPPLVVLRQ([SLUHVBBBBBBB dŽǁŶƐŚŝƉ ǁĂǇ Ă ĨĞĞƚ͖ĨĞĞƚ͖ ϭϴ͖ ϭϯ͖ƚŚĞ ŶŽƌƚŚĞƌůǇ ĂůŽŶŐ KůŵƐƚĞĚ ƐĞĐŽŶĚƐƐĞĐŽŶĚƐϮϭ ƐĞĐŽŶĚƐ ^ŽƵƚŚǁĞƐƚ ^ŽƵƚŚǁĞƐƚ ǁŝƚŚ ĨĞĞƚ͕ ĐŽŶƚŝŶƵĞ 0LQQHVRWDKDV ƚŚĞ ƐĂŝĚ ƐĂŝĚ ƐĞĐŽŶĚƐ ƐĂŝĚ ƚŚĞŶĐĞ ŽĨϬϬ ϭϳ ŵŝŶƵƚĞƐ ϭϬϳĐĞŶƚƌĂůϭϰ^ĞĐƚŝŽŶ ŽĨ ^ĞĐƚŝŽŶ ϭϯϬ͘ϴϵ ^h/s/^/KE͕ϳϬϰ͘ϱϵ ƚŽ ƉĂƌĂůůĞů ƚŚĞŶĐĞ ƌŝŐŚƚ FRPSDQ\ ƐĞĐŽŶĚƐ Ϯϳϴ͘ϬϬ ŝŶ ĂůŽŶŐĚĞŐƌĞĞƐ ĚĞŐƌĞĞƐ ĂůŽŶŐ ŽĨĨŝĐĞƐĂŝĚ ĚĞŐƌĞĞƐ dŽǁŶƐŚŝƉ ŽĨ ϭϴ͕3DNV3URSHUWLHV,9//& ĨĞĞƚ ϮϮƉůĂƚƚĞĚ Ϭϯ ZĞĐŽƌĚĞƌ͕ Ϯϯ ƐĂŝĚ BBBBBBBBBB ƚŚĞŶĐĞ ϬϳƚŚĞŶĐĞ ďĞŐŝŶŶŝŶŐ͖ ůŝŶĞ ŶŽƌƚŚĞƌůǇĂ ĂůŽŶŐ ƐĂŝĚ ƐĂŝĚ ƐĂŝĚ D^ĞĐƚŝŽŶϬϰ ƐĂŝĚĂǌŝŵƵƚŚĂǌŝŵƵƚŚ &KDUOHV3DJHQKDUW ŵŝŶƵƚĞƐ ŵŝŶƵƚĞƐ ŵŝŶƵƚĞƐ ϭϬϲϭ͘ϭϴĂǌŝŵƵƚŚƚŚĞ ĂŶĚ ĂǌŝŵƵƚŚ ĨĞĞƚ͖ ĂǌŝŵƵƚŚ͕ ŽĨ //& ŵŝŶƵƚĞƐĂůŽŶŐ &KDUOHV3DJHQKDUW3UHVLGHQWRI3DNV3URSHUWLHV,9//&RQEHKDOIRIWKHFRPSDQ\ Ϭϳ ϮϴϬ SUHVHQWVWREHVLJQHGE\LWVSURSHURIILFHUWKLVBBBBGD\RIBBBBBBBBBBBBBBBB Ϯϳϵ ϯϱϵĚĞŐƌĞĞƐ ǁĞƐƚ OLDELOLW\ ŽĨ ŽĨ ŽĨĂƐƌĂĚŝƵƐ ŽĨ ŝŶ ŵŝŶƵƚĞƐĨĞĞƚ͕ĂǌŝŵƵƚŚ ϭϯ͕ ďĞŐŝŶŶŝŶŐ͖ ,/>>^ϯϬϬ͘ϬϬ ĨĞĞƚ͖ ǁĞƐƚĞƌůǇ ůŝŶĞ ŽĨ ,9 ŽƵŶƚǇŽĨE͘͘ ůŝŶĞ YƵĂƌƚĞƌ ŶŽƌƚŚĞƌůǇ YƵĂƌƚĞƌƌĞĐŽƌĚ ƐĞĐŽŶĚƐƐĞĐŽŶĚƐĨĞĞƚ ƐĂŝĚ3UHVLGHQW ϱϮ ϮϬ ƚŚĞ ^ĞĐƚŝŽŶ ŽĨϭϵ ƐĞĐŽŶĚ ůŝŶĞ ƐĞĐŽŶĚƐ RI ĂǌŝŵƵƚŚ YƵĂƌƚĞƌƐĞĐŽŶĚƐ ϮϮϮ͘ϬϬ 3URSHUWLHV ϯϭ OLPLWHG Ă ǁĞƐƚ ϴϵ ϭϵϰ͘ϱϰ ŶŽƌƚŚ DKZZ/^ ĚĞŐƌĞĞƐƌŝǀĞ ĚĞŐƌĞĞƐƉŽŝŶƚ GD\ ĚĞŐƌĞĞƐϵϲ͘ϴϮ ĂůŽŶŐŚĂǀŝŶŐ ƚŽ YƵĂƌƚĞƌ͕ ϯϭƐĞĐŽŶĚ ĞĂƐƚ ĚĞŐƌĞĞƐ ĞĂƐƚĞƌůǇ ŽĨ ƚŚĞ ƚŚĞŶĐĞ ^ŽƵƚŚǁĞƐƚ ƚŚĞ BBBB ŽĨĨĞĞƚ Ϯϲ ŽĨ^ŽƵƚŚĞĂƐƚĚĞŐƌĞĞƐ Ϭϳ Ϭϭ ƚŚĞŶĐĞ WŽŝŶƚ ŽĨ ƚŚĞ 0LQQHVRWD ƚŚĞ ĂŶĚ ^ŽƵƚŚǁĞƐƚ ϬϳĐŚŽƌĚ Ϭϳ ƐĂŝĚ ĨĞĞƚǁĞƐƚĞƌůǇ ŽĨĂǌŝŵƵƚŚ ƉŽŝŶƚ YƵĂƌƚĞƌ ŵŝŶƵƚĞƐ ŵŝŶƵƚĞƐƐŽƵƚŚĞƌůǇ͕ ŝŶϮϴϯǁŝƚŚ ƌĂĚŝƵƐϮϲ ŵŝŶƵƚĞƐ 3DNV ϭϵϵϬϭϰϲ͘ϭϴ ŵŝŶƵƚĞƐ WKLV ƚŽ ƚŽ ŵŝŶƵƚĞƐ ŽĨĨŝĐĞ^ŽƵƚŚǁĞƐƚ ϭϳϴ ĨŝůĞ ƚŚĞŶĐĞ ƉůĂƚƚĞĚ ĂůŽŶŐĨĞĞƚ͖ ϱϳ͘ϱϬ ^ƚŽŶĞ ŶŽƌƚŚĞĂƐƚĞƌůǇ ŵŝŶƵƚĞƐ tĞƐƚ͕KůŵƐƚĞĚŽƵŶƚǇ͕DŝŶŶĞƐŽƚĂĚĞƐĐƌŝďĞĚĂƐĨŽůůŽǁƐ͗ Ă ϭϳϴĨĞĞƚƉĂƌĂůůĞů ƚŚĞǁĞƐƚĞƌůǇ ĨĞĞƚ͖ ƉĂƌĂůůĞů PH ƐŽƵƚŚĞƌůǇ ZĂŶŐĞϭϯtĞƐƚ͕KůŵƐƚĞĚŽƵŶƚǇ͕ĚĞƐĐƌŝďĞĚĂƐĨŽůůŽǁƐ͗ 7KDW ŽŶĂŶĚ ŶŽƌƚŚ͕ Ă ^ŽƵƚŚĞĂƐƚƚŚĞƚŚĞƐĞĐŽŶĚƐ ƚŚĞŶĐĞĐƵƌǀĞ͕ ϲϮ͘ϯϮ D ϭϱ ƚŚĞ ϯϭ ƚŽ ŶŽƌƚŚ͕ŚĂǀŝŶŐƚŚĞ ϭϯϲϰ͘ϴϬ ϬϮ EHIRUH ǁĞƐƚĞƌůǇ ĂǌŝŵƵƚŚ ŽĨ ϯϭƚŚĞƌĞŽĨ ĂƐϳϮ͘ϱϭ ĨĞĞƚ͖ĐŽŶĐĂǀĞ FRPSDQ\RZQHURIWKHIROORZLQJGHVFULEHGSURSHUW\//& ƐĞĐŽŶĚƐ ϯϭ ĨĞĞƚ ŽĨĚĞŐƌĞĞƐ 35(6(176ĚĞŐƌĞĞƐ ŽĨ ůŝŶĞ ĚĞŐƌĞĞƐ ŝŶĚĞŐƌĞĞƐ ŽĨĂǌŝŵƵƚŚ͕ϬϮ E͘͘ ƐĂŝĚ ĂǌŝŵƵƚŚ͕ ƚŚĞŶĐĞĨƌŽŵ ĚĞŐƌĞĞƐ ĂǌŝŵƵƚŚ ĐŽƌŶĞƌ ƉƌĞĐĞĚŝŶŐ ĐŽƌŶĞƌ ϭϳϮ͘ϲϬDŝŶŶĞƐŽƚĂ͖ ƌĞĐŽƌĚ ,ĂůĨ ĨƌŽŵ ϭϯϲϰ͘ϴϬ^ĂŝĚƚƌĂĐƚƐĐŽŶƚĂŝŶϭϱ͘ϵϵĂĐƌĞƐ͕ŵŽƌĞŽƌůĞƐƐ ,9 ƚŚĞŶĐĞĚĞŐƌĞĞƐ Ϯϵ DFNQRZOHGJHG ŶŽƌƚŚĞƌůǇ͕ ϭϬϲϭ͘ϭϴĨĞĞƚƚŽƚŚĞƉŽŝŶƚŽĨďĞŐŝŶŶŝŶŐ͘ ůŝŶĞ ǁĂǇ ŽĨ ƌŝǀĞ ƚŚĞƚŚĞŶĐĞ ƐĞĐŽŶĚƐYƵĂƌƚĞƌ ƉůĂƚ ƚŚĞŶĐĞ ĐƵƌǀĞ͕ϭϴ 3URSHUWLHV ŵŝŶƵƚĞƐ ĂǌŝŵƵƚŚ ϭϴϲ ϯϱϴ tĞƐƚ ůŝŶĞ ǁĂǇ ϯϱϴ ĂǌŝŵƵƚŚ Ϯϲϵ ŽĨ ŽĨƐĞĐŽŶĚƐ͖ ƐĞĐŽŶĚƐ EŽƌƚŚǁĞƐƚ ƐĞĐŽŶĚƐ EŽƌƚŚĞĂƐƚ ŽĨŵŝŶƵƚĞƐ ƐĞĐŽŶĚƐƚŚĞ ϯϱϴ YƵĂƌƚĞƌ͕ WŽŝŶƚ ĨĞĞƚ͖ YƵĂƌƚĞƌƌŝŐŚƚ ƐŽƵƚŚĞƌůǇϮϲϵ 7+(6(YƵĂƌƚĞƌ ŶŽƌƚŚĞƌůǇ ŶŽƌƚŚ ŶŽƌƚŚĞƌůǇ ŽĨƚŚĞ ĨĞĞƚ͖ ĂŶĚĨĞĞƚ͖ ƚŚĞ ǁĞƐƚĞƌůǇ ŶŽŶƚĂŶŐĞŶƚŝĂů ^ŽƵƚŚǁĞƐƚ ϬϳĐŽŶĐĂǀĞ ƚŽGUDLQDJHDQGXWLOLW\SXUSRVHVRQO\ ŽƵŶƚǇ͕ ŶŽƌƚŚĞƌůǇ ,167580(172)'(',&$7,21 ϯϱ ƌŝŐŚƚ ĂƐƐƵŵĞĚ ǁĞƐƚĞƌůǇ ^ƚŽŶĞ Ϯϭϭ͘ϵϳ ĂƐƐƵŵĞĚ ŽĨ ŶŽƌƚŚƚŽ ĂĐĐŽƌĚŝŶŐ 3DNV ŵŝŶƵƚĞƐ ZDV ĨŝůĞ ϭϭϮ͘ϴϲ Ϯϭϰϲ͘ϬϰϮϭƚŚĞ Ϭϳϱϳ ϯϲ ĚĞŐƌĞĞƐ ^ŽƵƚŚǁĞƐƚ %< ƉĂƌƚ ^ŽƵƚŚĞĂƐƚ ^ŽƵƚŚĞĂƐƚ ƚĂŶŐĞŶƚ ƚŚĞ ƚŚĞ ŶŽƌƚŚĞƌůǇ ŵŝŶƵƚĞƐŵŝŶƵƚĞƐ ŽŶƚŚĞŶĐĞĚĞŐƌĞĞƐ ƚŚĞŶĐĞŵŝŶƵƚĞƐ ŵŝŶƵƚĞƐ ƚŽ ƚŚĞŶĐĞLQVWUXPHQW ƚŚĞŶĐĞ ŽĨ 67$7(2)0,11(627$ ĐƵƌǀĞ͕VDLG KůŵƐƚĞĚ&2817<2)2/067(' ƚŚĞ 3(56216 ƚŚĂƚ ĂǌŝŵƵƚŚ ĂǌŝŵƵƚŚƐĂŝĚ ƚŚĞƌĞŽĨƉĂƌĂůůĞů ƚŚĞŶĐĞ ƚŚĞŶĐĞ Ăƚ ůŝŶĞĂƚĂŶ ůŝŶĞ ϯϭ ĂŶ ƚŽ ϭϵϭ ZKHUHRI ^h/s/^/KE͕Ă ŽŵŵĞŶĐŝŶŐŽŵŵĞŶĐŝŶŐ ŽŶ ŽŶůŝŶĞ͕ ĚĞŐƌĞĞƐ t/d, ŽĨ ǁĂǇƚĂŶŐĞŶƚŝĂůĨĞĞƚ͖ĨĞĞƚ͖ ǁĂǇ ĨĞĞƚ͖ŽŶ ĨĞĞƚϭϵ ϱϬϬϰ ƚŚĞDŝŶŶĞƐŽƚĂ͖ϯϭ ƐĂŝĚϱϯ ƐĂŝĚ ƐĂŝĚ ƐŽƵƚŚĞƌůǇƐŽƵƚŚĞƌůǇƐŽƵƚŚĞƌůǇZĞĐŽƌĚĞƌ͕ ůŝŶĞ IRUHJRLQJ ƐĞĐŽŶĚƐ͖ ĂǌŝŵƵƚŚ͕ ůŝŶĞ ŽĨYƵĂƌƚĞƌ͖ ƉůĂƚ ƐĞĐŽŶĚƐƐĞĐŽŶĚƐ ĚĞŐƌĞĞƐĚĞŐƌĞĞƐĚĞŐƌĞĞƐĚĞŐƌĞĞƐ ŽĨŽĨŽĨ ǁĂǇ ϭϴϬ͘ϬϬϭϵϭ͘ϱϬϳϳϵ͘ϴϯϭϰϱ͘ϵϬ $// ŽĨŽĨ dK'd,Z ĂůŽŶŐ ĂŶŐůĞ ZLWQHVV ƉĂƌƚǁĞƐƚ ƌŝŐŚƚƌŝŐŚƚ ǁĂǇ ϭϳϴ ůŝŶĞůŝŶĞ ƚŚĞ ŽĨ .12: Ă dŚĂƚ 7KH ,Q 7+(6:2)6(&7/(1*7+ )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( WKLVGHYHORSPHQW ) ([HFXWLRQRID&LW\2ZQHU&RQWUDFWLVUHTXLUHGSULRUWRWKHFRQVWUXFWLRQRIDQ\SXEOLFLQIUDVWUXFWXUHWR VHUYHWKLVGHYHORSPHQW &281&,/$&7,215(48(67(' [[285,476,2352,533][12][B,I,][Arial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHD [[285,534,1444,591][12][B,I,][Arial]]UHVROXWLRQZLWKILQGLQJVVXSSRUWLQJWKHLUGHFLVLRQ [[1445,538,1458,590][11][B,I,][Arial]] 3DFNHW3J )D IW1RWLILFDWLRQ$UHDRI ( 1 )LQDO3ODW3/$7WREHNQRZQDV&DWDOLQD5LGJHE\(5+'HYHORSLQJ Q / 7KH3ODWSURSRVHVWZREORFNVWZHQW\ILYHORWVDQGRQH2XWORWRQDSSUR[LPDWHO\ H U D )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J )F 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( )D IW1RWLILFDWLRQ$UHDRI )LQDO3ODW3/$7WREHNQRZQDV%HO$LU1LQWK7KH3ODWSURSRVHV WRVXEGLYLGHRQHORWDQGRQHEORFNIRUGHYHORSPHQW7KHSURSHUW\LVORFDWHG VRXWKRI ,FHUWLI\WKDWWKLVSODWKDVEHHQFKHFNHGPDWKHPDWLFDOO\DQGWKDWWKHSODWFRQIRUPVWRDSSOLFDEOHSODWWLQJODZV 7KLVLQVWUXPHQWZDVDFNQRZOHGJHGEHIRUHPHWKLVBBBBGD\RIBBBBBBBBBBBBBE\0DUN-+DVHOLXV VKRZQDQGODEHOHGRQWKLVSODWDQGDOOSXEOLFZD\VDUHVKRZQDQGODEHOHGRQWKLVSODW DQGWUDQVIHUKDVEHHQHQWHUHGWKLVBBBBGD\RIBBBBBBBBBBBBB 5RFKHVWHUWKLVBBBBGD\RIBBBBBBBBBBBBB 'DWHGWKLVBBBBGD\RIBBBBBBBBBBBBB KDYH 3523(57<5(&25'6$1'/,&(16,1* WKDW PDWKHPDWLFDO DFFRPSDQ\LQJ WKH BBB 0LQQHVRWDZDV DQG LQ KDYH 7KLVBBBBGD\RIBBBBBBBBBBBBB FHUWLI\ RQ , 6XUYH\RU LQVWUXPHQW ZKHUHRI 'RFXPHQW1XPEHUBBBBBBBBBBBB LQ BBB SODW BBBBBBBBBB &OHUN KHUHE\ 6859(<25 6&(57,),&$7( WKLVLQ DOO \HDU /DQGGHILQHG WKH &LW\ 67$7(2)0,11(627$67$7(2)0,11(627$ &2817<2)2/067('WHVWLPRQ\&2817<2)2/067(' RQ WKLV &,7<2)52&+(67(5 WKDW GR 6(7$1'0$5.('%</,&(16(12ILFHRIWKH GHJUHH 6RXWK PLQXWHV 1RWDU\3XEOLF2OPVWHG&RXQW\01E\ RQ VHFRQGVWKHVH OLDELOLW\ E\ WKLV SODW KLV FKRUGWKLV %LVEH\ WKHQFH /RW QRQWDQJHQWLDO KDYH VRXWK (,*+7+ RI ZHVWHUO\ /RW PH WKHQFH D FRQFDYHPH VDLG /RW VHFRQGV:HVWIHHWWRWKHSRLQWRIEHJLQQLQJ0LQQHVRWD VRXWKHDVW FRUQHUD RI/RW 7UXVW /RW 7KDW DQGVDLGEHIRUH /RW EHIRUH (,*+7+ WKH RI UDGLXV VDLG VDLG /RW WKHQFH VDLG $,5 VDLGOLQH DORQJVHFRQGV WKH 35(6(176RI 5HYRFDEOH QRUWKZHVW FXUYH RI VDLG &RXQW\5HFRUGHU2OPVWHG&RXQW\0LQQHVRWD RI DFNQRZOHGJHG DFNQRZOHGJHG D %(/ DHDVW RIFRUQHU WKH RIWRD 6DLGWUDFWVFRQWDLQVDFUHVPRUHRUOHVV FRUQHU RQ$,5 VHFRQGV OLQH //& (DVW FRUQHU OLQHIHHW RIEHJLQQLQJ QRQWDQJHQWLDO WR WKH %(/ FRUQHU ZHVWHUO\ /RW IHHW %ORFN HDVW QRUWKZHVW WKH/RVH VHFRQGV /RVH DORQJPLQXWHV VRXWKZHVW QRUWKHDVW 7+(6( VDLG 7RJHWKHUSDUW IHHW OLQH .12:RI $/62 7KDW 7KH7KH ,Q,Q (;,678( (;,678( 6 ( 1 : (;,678( 6 ( '((' (;,678( (/,1(/27 '((' 1(&251(5/27 $32,17)((76 5/<2) 7+(1(&251(5/27 32% (;,678( '( 6 )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )F 7KHKDQGWRUHDFKIRU«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rial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rial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHDUHVROXWLRQZLWK [[150,2362,950,2419][12][B,I,][Arial]]ILQGLQJVVXSSRUWLQJWKHLUGHFLVLRQ 3DFNHW3J )D IW1RWLILFDWLRQ$UHDRI )LQDO3ODWWREHNQRZQDV&LUFOH3OD]D7KLUGE\:HVW%DQFRUSRUDWLRQ,QF 7KH3ODWSURSRVHVRQHEORFNFRQVLVWLQJRIDVLQJOHORWRIDSSUR[LPDWHO\ DFUHV7KHSURSHUW\LVORFDWHGHDVWRI6XSHULRU'U1:VRXWKRI+HULWDJH : U1 RJ\' KQRO 7HF 3ODFH1:DQGZHVWRI:HVW&LUFOH'ULYH1: : W1 6 : 6W1 + HU LWD JH 3 O1 : : 1 H Y $ 6,7( /HJHQG &HQWHUOLQHV &LW\/LPLWV 5LYHUV %OGJB)ORRUVB%XIIHUIW 53/$7B3DUFHOV 3DUFHOVB%XIIHUIW 52:B3DUFHOVB%XIIHUIW )HHW 3DUFHOV 6W 5DLOURDG q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±[[1133,1132,1146,1185][11][,I,][Arial]] [[1146,1132,2012,1185][11][,I,][Arial]]E\0LNH1LJEXU3DUN )RUHVWU\'LY+HDG [[2010,1132,2023,1185][11][,I,][Arial]] [[2023,1132,2036,1185][11][,I,][Ari al]] [[2036,1132,2116,1185][11][,I,][Arial]]3K [[2117,1132,2143,1185][11][,I,][Arial]] [[2143,1132,2194,1185][11][,I,][Arial]] [[2193,1132,2208,1185][11][,I,][Arial]] [[2209,1132,2311,1185][11 ][,I,][Arial]] [[2310,1132,2323,1185][11][,I,][Arial]] x 1R&RPPHQW 75((5(48,5(0(176 [[760,1329,773,1386][12][,I,][Arial]] [[812,1329,825,1386][12][,I,][Arial]] ±[[800,1333,813,1386][11][,I,][Arial]] x %RXOHYDUGWUHHVZLOOEHUHTXLUHGIRUWKHGHYHORSPHQW3ULRUWRWKHGHYHORSPHQWRIWKH SURSHUW\WKH2ZQHUVKDOOGHWHUPLQHZKLFKRIWKHWZRDYDLODEOHRSWLRQV3D\PHQW0HWKRG RU,QVWDOO%RXOHYDUG7UHHVZLOOEHXVHGWRPHHWWKHLUERXOHYDUGWUHHREOLJDWLRQVIRUHDFK SKDVHRIGHYHORSPHQW2QFHWKHRSWLRQLVVHOHFWHGWKH2ZQHUVKDOOHLWKHUPDNH DSSOLFDEOHFDVKSD\PHQWWRWKH5RFKHVWHU3DUN 5HFUHDWLRQ'HSDUWPHQWRUVXEPLWD SODQWLQJSODQWRWKH&LW\)RUHVWHUIRUDSODQWLQJSHUPLWSULRUWRILQDOGHYHORSPHQWDSSURYDO x 7UHHVVKDOOEHSODQWHGHYHU\IHHW 0LNH1LJEXU )RXUWK6WUHHW6(5RRP 5RFKHVWHU01 )F 7KHKDQGWRUHDFKIRU«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³*UHDVHLQWHUFHSWRU´PHDQVDGHYLFHGHVLJQHGDQGLQVWDOOHGVRDVWRVHSDUDWH DQGUHWDLQIDWVRLOVDQGJUHDVHIURPQRUPDOZDVWHVZKLOHSHUPLWWLQJQRUPDOVHZDJHRUOLTXLG ZDVWHVWRGLVFKDUJHLQWRWKHGUDLQDJHV\VWHPE\JUDYLW\ 6XEG +D W\SLFDOO\ORFDWHGXQGHUJURXQGXVXDOO\RXWVLGHRIDEXLOGLQJWKDWUHGXFHVWKHDPRXQWRI)2*LQ ZDVWHZDWHUSULRUWRLWVGLVFKDUJHLQWRWKH327: 6XEG³+\GURPHFKDQLFDOJUHDVHLQWHUFHSWRU´PHDQVDJUHDVHLQWHUFHSWRUWKDW LQFRUSRUDWHVDLUHQWUDLQPHQWK\GURPHFKDQLFDOVHSDUDWLRQLQWHULRUEDIIOLQJDQGRUEDUULHUVLQ FRPELQDWLRQRUVHSDUDWHO\)RUSXUSRVHVRIWKLVRUGLQDQFHDK\GURPHFKDQLFDOJUHDVH LQWHUFHSWRULVDVPDOOJUHDVHFDSWXULQJGHYLFHXVXDOO\ORFDWHGZLWKLQDEXLOGLQJ 6XEG³1RQURXWLQHLQVSHFWLRQ´PHDQVDQLPSURPSWXXQVFKHGXOHGLQVSHFWLRQRIDQ )6(PDGHZLWKRXWSULRUQRWLILFDWLRQRUDUUDQJHPHQW 6XEG³3HUVRQ´PHDQVDQLQGLYLGXDOSDUWQHUVKLSMRLQWYHQWXUHILUPFRPSDQ\ FRUSRUDWLRQDVVRFLDWLRQMRLQWVWRFNFRPSDQ\JRYHUQPHQWDOHQWLW\WUXVWHVWDWHVROH SURSULHWRUVKLSRUOHJDOHQWLW\RIDQ\NLQGRUFKDUDFWHU 6XEG³3XEOLFO\2ZQHG7UHDWPHQW:RUNV 327: ´PHDQVWKHSXEOLFO\RZQHG WUHDWPHQWZRUNVWKDWLVFRPSULVHGRIWKHVDQLWDU\VHZHUV\VWHPLQFOXGLQJWUHDWPHQWSODQWDQG FROOHFWLRQLQIUDVWUXFWXUHRSHUDWHGE\WKH&LW\RI5RFKHVWHU¶V3XEOLF:RUNV'HSDUWPHQW 6XEG³5RXWLQH,QVSHFWLRQ´PHDQVDQLQVSHFWLRQRIDQ)6(ZKLFKLVVFKHGXOHGLQ DGYDQFHRUDFFRUGLQJWRDSUHDUUDQJHGVFKHGXOH 6XEG:DWHU5HFODPDWLRQ3ODQW :53 PHDQVDQDUUDQJHPHQWRIGHYLFHVDQG VWUXFWXUHVIRUWUHDWLQJZDVWHZDWHUDQGVOXGJHRZQHGDQGRSHUDWHGE\WKH&LW\RI5RFKHVWHU 3XEOLF:RUNV'HSDUWPHQW 6XEG³:530DQDJHU´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¶VRXWOHWLVFRQVLVWHQWO\ DFKLHYHG 6XEG$VSDUWRIHDFKFOHDQLQJRIDJUHDVHLQWHUFHSWRUWKHEXLOGLQJRZQHURU RSHUDWRURIWKH)6(RUWKHOLFHQVHGZDVWHKDXOHUHPSOR\HGE\WKHEXLOGLQJRZQHURURSHUDWRU VKDOOSHUIRUPWKHIROORZLQJPDLQWHQDQFHDFWLYLWLHV &KHFNWKDWWKHVDQLWDU\³WHHV´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¶VVDQLWDU\VHZHUV\VWHPGRZQVWUHDPRIWKH )6( +D 3ODFHIRRGVFUDSVIURPGLVKHVLQWRWUDVKFDQVDQGJDUEDJHEDJVDQGGLVSRVHRI SURSHUO\ 1HYHUSRXUJUHDVHRLOVRLO\VDXFHVV\UXSVRUGUHVVLQJGRZQWKHGUDLQ 1HYHU³KRWIOXVK´RLODQGJUHDVHGRZQVLQNVDQGGUDLQV 'LVSRVHRI)2*LQFRYHUHGFROOHFWLRQFRQWDLQHUV +D [[450,240,802,297][12][,I,][Arial]]6XUFKDUJHIHHV [[831,240,2224,297][12][,,][Arial]]$Q\)6(WKDWGRHVQRWKDYHDJUHDVHLQWHUFHSWRULQVWDOOHGVKDOO [[2241,240,2321,297][12][,,][Arial]]SD\ DVXUFKDUJHIHHIRUDGGLWLRQDOVHUYLFHVUHTXLUHGWRUHPRYHDQGWUHDWWKHDGGLWLRQRI H[FHVVLYH)2*WRWKHVHZHUV\VWHP7KHIHHZLOOEHDVVHVVHGRQWKH)6(¶V PRQWKO\XWLOLW\ELOO:KHUHPXOWLSOH)6(¶VDUHOLVWHGXQGHURQHXWLOLW\ELOODVXUFKDUJH IHHZLOOEHDVVHVVHGIRUHDFK)6( [[450,637,686,694][12][,I,][Arial]]([HPSWLRQ [[701,637,939,694][12][,I,][Arial]]DSSOLFDWLRQ [[953,637,1061,694][12][,I,][Arial]]IHHV [[1076,637,2318,694][12][,,][Arial]]$Q\)6(WKDWILOHVIRUDQH[H PSWLRQIURPLQVWDOODWLRQRID JUHDVHLQWHUFHSWRUPXVWVXEPLWDQH[HPSWLRQIRUPDQGDOOQHFHVVDU\VXSSRUWLQJ GRFXPHQWVDORQJZLWKDRQHWLPHH[HPSWLRQDSSOLFDWLRQIHH,IJUDQWHGDQ H[HPSWLRQIRULQVWDOODWLRQRIDJUHDVHLQWHUFHSWRUWKH)6(LVVWLOOUHTXLUHGWRSD\WKH VXUFKDUJHIHH [[450,1034,874,1091][12][,I,][Arial]])DLOXUHWR0DLQWDLQ [[904,1034,1528,1091][12][,,][Arial]]*UHDVHLQWHUFHSWRUVVKDOOEH [[1543,1034,1770,1091][12][,,][Arial]]LQVSHFWHG [[1785,1034,1960,1091][12] [,,][Arial]]FOHDQHG [[1960,1034,1974,1091][12][,,][Arial]] [[1988,1034,2232,1091][12][,,][Arial]]PDLQWDLQHG [[2233,1034,2247,1091][12][,,][Arial]] DQGSURSHUO\UHFRUGHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKLVRUGLQDQFH$Q\)6( YLRODWLQJWKLVVHFWLRQPD\EHLVVXHGDILQHIRULQDGHTXDWHO\PDLQWDLQLQJWKHLUJUHDVH LQWHUFHSWRU$IDLOXUHWRPDLQWDLQIHHLVLQDGGLWLRQWRUHLQVSHFWLRQIHHV [[450,1364,763,1421][12][,I,][Arial]]'LVSRVDOIHHV [[792,1364,2275,1421][12][,,][Arial]]$IHHLVFKDUJHGIRUGLVSRVDORI)2*DWWKH:53WRVXEVLGL]HFRVWV IRUUXQQLQJWKH)2*SURJUDPDQGFDSLWDODQGRSHUDWLRQDOH[SHQVHVIRUWUHDWPHQW WKLVRUGLQDQFHUHODWHGWR WKHLUVSHFLILFIXQFWLRQV +D 6WDWHV3RVW2IILFHWKHQRWLFHDGGUHVVHGWRWKHRZQHUDWWKHRZQHU¶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¶VZDVWHZDWHU FROOHFWLRQDQGWUHDWPHQWV\VWHP7KH5RFKHVWHU&LW\&RXQFLOKDVUHYLHZHGDSURSRVHG)2*2UGLQDQFH DQGWKLVOHWWHULVWRLQIRUP\RXRIWKHSURSRVHG)2*2UGLQDQFHDQGWKHUHTXLUHPHQWVDQGLPSDFWVLWPD\ KDYHRQ\RXUEXVLQHVV 7KHSURSRVHG)2*2UGLQDQFHLVWKHUHVXOWRIWKH(QYLURQPHQWDO3URWHFWLRQ$JHQF\¶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¶V:DWHU5HFODPDWLRQ3ODQW :53 GLGQRWSUHYLRXVO\DFFHSW)2*WKDWZDV UHPRYHGIURPWKHJUHDVHLQWHUFHSWRURID)6(8QWLOQRZ)2*ZDVFROOHFWHGE\ORFDOVHSWDJH FRQWUDFWRUVDQGZDVKDXOHGJUHDWGLVWDQFHVDQGDWJUHDWFRVWVWRRXWRIWRZQIDFLOLWLHVWKDWDFFHSWDQG GLVSRVHRI)2*$VDUHVXOWRIWKHDGRSWLRQRID)2*2UGLQDQFHWKH:53ZLOOQRZDFFHSWDQGWUHDW )2*IRUDQRPLQDOFRVWRISHUJDOORQV 3DFNHW3J +E %HVW0DQDJHPHQW3UDFWLFHV %03V DUHDZD\WRUHGXFH)2*DQG)6(¶VRSHUDWLQJFRVWVDQGLQFOXGH SUDFWLFHVVXFKDVJRRGKRXVHNHHSLQJHPSOR\HHWUDLQLQJVSLOOFRQWUROSODQVUHF\FOLQJDQGSURSHUZDVWH GLVSRVDOPHWKRGV7KH:53ZLOOEHVHQGLQJRXWUHFRPPHQGHG%03¶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h>d/KEK&&d^͕K/>^͕Θ'Z^/^,Z'z&KK^Zs/^d>/^,DEd^ KZ/EEϳϲʹ&ZYhEd>z^<Yh^d/KE^ ϭ͘,ŽǁĚŽĞƐƚŚŝƐŽƌĚŝŶĂŶĐĞĂĨĨĞĐƚŵǇďƵƐŝŶĞƐƐ͍ /ĨǇŽƵƌďƵƐŝŶĞƐƐĐƵƌƌĞŶƚůǇŚĂƐĂŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌ͕ǇŽƵǁŝůůďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůǇǁŝƚŚƌŽƵƚŝŶĞ ŝŶƐƉĞĐƚŝŽŶƐŽŶŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐ͕ĂůŽŶŐǁŝƚŚŬĞĞƉŝŶŐƌĞĐŽƌĚƐŽĨŝƚƐĐůĞĂŶŝŶŐĂŶĚŵĂŝŶƚĞŶĂŶĐĞ͘/Ĩ ǇŽƵĂƌĞĂŶĞǁďƵƐŝŶĞƐƐ͕ǇŽƵǁŝůůďĞƌĞƋƵŝƌĞĚƚŽŝŶƐƚĂůůĂŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƚŚĂƚĨŝƚƐ^ƚĂƚĞWůƵŵďŝŶŐ ŽĚĞ͘/ĨǇŽƵƌďƵƐŝŶĞƐƐĚŽĞƐŶŽƚŚĂǀĞĂŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌ͕ǇŽƵǁŝůůďĞƌĞƋƵŝƌĞĚƚŽƉĂǇĂŵŽŶƚŚůǇ ƐƵƌĐŚĂƌŐĞĨĞĞ͘ Ϯ͘tŚǇŝƐƚŚĞƌĞĂ&K'ƚƌĞĂƚŵĞŶƚƐƵƌĐŚĂƌŐĞĨĞĞƉĞƌŵŽŶƚŚĨŽƌ&^ƐǁŝƚŚŶŽŝŶƚĞƌĐĞƉƚŽƌ͍ dŚĞƐƵƌĐŚĂƌŐĞĨĞĞŝƐƚŽŚĞůƉƉĂǇĨŽƌƚŚĞĂĚĚĞĚŵĂŝŶƚĞŶĂŶĐĞĂŶĚƚƌĞĂƚŵĞŶƚĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ƚƌĞĂƚŝŶŐƚŚĞ&K'ĚŝƐĐŚĂƌŐĞĚĨƌŽŵƚŚĞƐĞĞƐƚĂďůŝƐŚŵĞŶƚƐ͘ůƐŽ͕&^ƐǁŚŽŚĂǀĞĂŶĚŵĂŝŶƚĂŝŶƚŚĞŝƌ ŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌĂƌĞŝŶĐƵƌƌŝŶŐĂŶĂĚĚŝƚŝŽŶĂůďƵƌĚĞŶĨƌŽŵƚŚŽƐĞǁŚŽŚĂǀĞŶŽŝŶƚĞƌĐĞƉƚŽƌ͘dŚĞĨĞĞ ŚĞůƉƐĞƋƵĂůŝǌĞƚŚĞĐŽƐƚŽĨĚŽŝŶŐŶŽƚŚŝŶŐĐŽŵƉĂƌĞĚƚŽŵĂŝŶƚĂŝŶŝŶŐĂŶŝŶƚĞƌĐĞƉƚŽƌ͘ ϯ͘tŚĞŶĚŽ/ŶĞĞĚƚŽƐƚĂƌƚ͍ :ƵůǇϲ ƚŚǁŝůůďĞŐŝŶƚŚĞϯϬͲĚĂǇƌĞǀŝĞǁƉĞƌŝŽĚĨŽƌƚŚĞ&K'KƌĚŝŶĂŶĐĞ͘KŶĐĞŝƚŝƐƉĂƐƐĞĚ͕ƚŚĞtĂƚĞƌ ZĞĐůĂŵĂƚŝŽŶWůĂŶƚǁŝůůǀŝƐŝƚĞĂĐŚĨŽŽĚƐĞƌǀŝĐĞĞƐƚĂďůŝƐŚŵĞŶƚ;&^ͿǁŝƚŚĞĚƵĐĂƚŝŽŶĂůŵĂƚĞƌŝĂůĂŶĚǁŝůů ŝŶƐƉĞĐƚƚŚĞ&^͛ƐŐƌĞĂ ƐĞŝŶƚĞƌĐĞƉƚŽƌŝĨŝƚŚĂƐŽŶĞ͘EŽƉĞŶĂůƚŝĞƐǁŝůůďĞŐŝǀĞŶĚƵƌŝŶŐƚŚĞĨŝƌƐƚ ŝŶƐƉĞĐƚŝŽŶ͕ĂŶĚƚŚĞ&^ǁŝůůƚŚĞŶŚĂǀĞŽŶĞǇĞĂƌƚŽŵĂŬĞĂŶǇŶĞĐĞƐƐĂƌǇĐŚĂŶŐĞƐ͘&^ƐƐŚŽƵůĚ ŝŵŵĞĚŝĂƚĞůǇďĞŐŝŶĐůĞĂŶŝŶŐŝƚƐŝŶƚĞƌĐĞƉƚŽƌĂŵŝŶŝŵƵŵŽĨƋƵĂƌƚĞƌůǇŝĨŶŽƚĂůƌĞĂĚǇ͘ ϰ͘,ŽǁĚŽ/ŬŶŽǁŝĨ/ŚĂǀĞĂŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌ͍ DŽƐƚŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐĂƌĞůŽĐĂƚĞĚƵŶĚĞƌŶĞĂƚŚŽƌŶĞǆƚƚŽĂƐŝŶŬŝŶĂŶ&^͛ƐŬŝƚĐŚĞŶĂŶĚĐĂŶ ŶŽƌŵĂůůǇďĞŝĚĞŶƚŝĨŝĞĚďǇĂƌĞĐƚĂŶŐƵůĂƌŵĞƚĂůƉůĂƚĞŝŶƚŚĞĨůŽŽƌ͘>ĂƌŐĞƌŐƌĂǀŝƚǇŝŶƚĞƌĐĞƉƚŽƌƐĂƌĞ ƚǇƉŝĐĂůůǇŽƵƚƐŝĚĞĂŶĚƵŶĚĞƌŐƌŽƵŶĚ͘/ĨǇŽƵĂƌĞƵŶƐƵƌĞŝĨǇŽƵŚĂǀĞĂŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌŽƌĐĂŶŶŽƚ ůŽĐĂƚĞŝƚ͕ĐŽŶƚĂĐƚǇŽƵƌůŽĐĂůƉůƵŵďĞƌŽƌďƵŝůĚŝŶŐŽǁŶĞƌ͘ ϱ͘ŽĞƐƚŚĞŽƌĚŝŶĂŶĐĞƉƌŽǀŝĚĞƚŚĞďĞƐƚŵĞĂŶƐƚŽƉƌĞǀĞŶƚƐĞǁĞƌďůŽĐŬĂŐĞƐĐĂƵƐĞĚďǇ&K'͍ dŚĞŽƌĚŝŶĂŶĐĞŝƐǁƌŝƚƚĞŶƚŽƉƌŽǀŝĚĞĂŵĞĂŶƐŽĨ&K'ƌĞŵŽǀĂůǁŚŝůĞĐŽŵƉůǇŝŶŐǁŝƚŚƚŚĞDŝŶŶĞƐŽƚĂ WůƵŵďŝŶŐŽĚĞĂƐĂĚŽƉƚĞĚďǇƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͘ǇƌĞƋƵŝƌŝŶŐůŝĐĞŶƐĞĚĨŽŽĚƐĞƌǀŝĐĞ ĞƐƚĂďůŝƐŚŵĞŶƚƐƚŽŝŶƐƚĂůůĂŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌ͕ƚŚŝƐǁŝůůŐƌĞĂƚůǇƌĞĚƵĐĞďůŽĐŬĂŐĞ͕ŵĂŝŶƚĞŶĂŶĐĞ͕ĂŶĚ ƚƌĞĂƚŵĞŶƚĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ&K'ŝŶƚŚĞƐĞǁĞƌƐǇƐƚĞŵ͘ŝƚŚĞƌĂŐƌĂǀŝƚǇŝŶƚĞƌĐĞƉƚŽƌŽƌ ŚǇĚƌŽŵĞĐŚĂŶŝĐĂůŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌŝƐĂůůŽǁĞĚĞǀĞŶƚŚŽƵŐŚŝƚŚĂƐďĞĞŶĨŽƵŶĚƚŚĂƚŐƌĂǀŝƚǇ ŝŶƚĞƌĐĞƉƚŽƌƐƉƌŽǀŝĚĞďĞƚƚĞƌƌĞŵŽǀĂůĂŶĚůŽǁĞƌŵĂŝŶƚĞŶĂŶĐĞĐŽƐƚƐ͘ ϲ͘tŚǇŝƐŶ͛ƚƚŚĞƌĞĂĚŝĨĨĞƌĞŶƚĐůĞĂŶŝŶŐĨƌĞƋƵĞŶĐǇƌĞƋƵŝƌĞĚĨŽƌƚŚĞƚǁŽĚŝĨĨĞƌĞŶƚŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐ ;ŐƌĂǀŝƚǇǀƐŚǇĚƌŽŵĞĐŚĂŶŝĐĂůͿ͍ dŚĞϮϱйƌƵůĞŝƐǁŝĚĞůǇĂĐĐĞƉƚĞĚĂƐƚŚĞďĞƐƚŵĞƚŚŽĚƚŽŵĂŝŶƚĂŝŶƉƌŽƉĞƌĐůĞĂŶŝŶŐĨƌĞƋƵĞŶĐǇ͘dŚĞ ŵŝŶŝŵƵŵƋƵĂƌƚĞƌůǇĐůĞĂŶŝŶŐŝƐƚŽŚĞůƉƉƌĞǀĞŶƚĐŝƌĐƵŵƐƚĂŶĐĞƐǁŚĞƌĞŚŽƚǁĂƚĞƌǁĂƐŚŽƵƚŽĐĐƵƌƐƚŽ ŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐǁŚĞƌĞŵĂŝŶƚĞŶĂŶĐĞŝƐŶŽƚƉƌŽƉĞƌůǇŵĂŶĂŐĞĚŽƌŵŽŶŝƚŽƌĞĚ͘'ĞŶĞƌĂůůǇ͕ƚŚĞ 3DFNHW3J +F ŚǇĚƌŽŵĞĐŚĂŶŝĐĂůŝŶƚĞƌĐĞƉƚŽƌǁŝůůƌĞƋƵŝƌĞĂŵŽƌĞƌĞŐƵůĂƌĐůĞĂŶŝŶŐĨƌĞƋƵĞŶĐǇĐŽŵƉĂƌĞĚƚŽƚŚĞ ŐƌĂǀŝƚǇŝŶƚĞƌĐĞƉƚŽƌƚŽŵĂŝŶƚĂŝŶƚŚĞϮϱйƌƵůĞ͘ ϳ͘,ŽǁĚŽǇŽƵĂƐƐƵƌĞƉĞŽƉůĞĐůĞĂŶĂŶĚŵĂŝŶƚĂŝŶƚŚĞŝƌŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐ͍ ůůďƵƐŝŶĞƐƐĞƐĂƌĞƌĞƋƵŝƌĞĚƚŽŬĞĞƉĂůŽŐƐŚĞĞƚƚŚĂƚǁĞƉƌŽǀŝĚĞƚŚĞŵƚŽŽƵƚůŝŶĞŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌ ĐůĞĂŶŝŶŐĨƌĞƋƵĞŶĐǇĂŶĚ&K'ĐŽŶĐĞŶƚƌĂƚŝŽŶƐ͘KŶƐŝƚĞŝŶƐƉĞĐƚŝŽŶƐĂŶĚƌĞǀŝĞǁŽĨƚŚĞůŽŐƐŚĞĞƚǁŝůů ŐŝǀĞŝŶƐŝŐŚƚŝŶƚŽƉƌŽƉĞƌŵĂŝŶƚĞŶĂŶĐĞŽĨƚŚĞŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌ͘tĞĂůƐŽŝŶĐůƵĚĞĚĂŶĚŵŝŶŝƐƚƌĂƚŝǀĞ ŝƚĂƚŝŽŶƚŽĨŝŶĞƚŚŽƐĞďƵƐŝŶĞƐƐĞƐǁŚŽĂƌĞŶŽƚĐŽŵƉůǇŝŶŐǁŝƚŚĂŶĂĚĞƋƵĂƚĞĐůĞĂŶŝŶŐƐĐŚĞĚƵůĞ͘/Ŷ ĂĚĚŝƚŝŽŶƚŽĂŶĂĚŵŝŶŝƐƚƌĂƚŝǀĞĨŝŶĞ͕ĂƌĞͲŝŶƐƉĞĐƚŝŽŶĨĞĞŝƐĂƐƐĞƐƐĞĚƚŽƚŚĞďƵƐŝŶĞƐƐŽǁŶĞƌĨŽƌĞĂĐŚ ĨŽůůŽǁƵƉŝŶƐƉĞĐƚŝŽŶ͘&ŽůůŽǁƵƉŝŶƐƉĞĐƚŝŽŶƐǁŝůůďĞĐŽŵĞŵŽƌĞĨƌĞƋƵĞŶƚƵŶƚŝůĐůĞĂŶŝŶŐĂŶĚ ŵĂŝŶƚĞŶĂŶĐĞƐĐŚĞĚƵůĞƐĨĂůůǁŝƚŚŝŶƚŚĞŐƵŝĚĞůŝŶĞƐŽĨƚŚĞŽƌĚŝŶĂŶĐĞ͘ĨŝŶĂůEŽƚŝĐĞŽĨsŝŽůĂƚŝŽŶŵĂǇ ďĞƵƐĞĚŝĨŶŽŶͲĐŽŵƉůŝĂŶĐĞĐŽŶƚŝŶƵĞƐ͘ ϴ͘tŚǇŝƐƚŚĞƌĞŶŽƚĂ&K'ĚŝƐƉŽƐĂůĨĞĞŝŶƚŚĞŽƌĚŝŶĂŶĐĞ͍ &K'ĚŝƐƉŽƐĂůĨĞĞΨϯϬƉĞƌϭϬϬϬŐĂůůŽŶƐŝƐŐŽŝŶŐƚŽďĞƉƌĞƐĞŶƚĞĚĂƐƉĂƌƚŽĨƚŚĞĐŝƚǇĐŽƵŶĐŝů ĂƉƉƌŽǀĞĚƐĞǁĞƌƌĂƚĞƐƉƌŽƉŽƐĞĚĨŽƌϮϬϭϲƚŚƌŽƵŐŚϮϬϮϬ͘hŶƚŝůƚŚĂƚƚŝŵĞ͕ĂΨϯϬƉĞƌϭϬϬϬŐĂůůŽŶƐĨĞĞ ǁŝůůďĞĐŚĂƌŐĞĚĂƚƚŚĞtZWĨŽƌĚŝƐƉŽƐĂůŽĨ&K'ǁĂƐƚĞ͘dŚŝƐĨĞĞŝƐůŽǁĞƌƚŚĂŶŽƵƌĞǆŝƐƚŝŶŐǁĂƐƚĞƚĂŶŬ ĚŝƐĐŚĂƌŐĞŽƌƐĞƉƚŝĐƚĂŶŬĚŝƐĐŚĂƌŐĞĨĞĞƐĂŶĚǁĂƐĨŽƵŶĚƚŽďĞĂĐŽŵŵŽŶŵŝĚĚůĞŐƌŽƵŶĚĨŽƌŽƚŚĞƌ &K'ƌĞĐĞŝǀŝŶŐƐƚĂƚŝŽŶƐĂĐƌŽƐƐƚŚĞŶĂƚŝŽŶ͘ ϵ͘tŚǇŝƐŶ͛ƚƚŚĞƌĞĂƐƵƌĐŚĂƌŐĞĨĞĞĨŽƌŝŶĂĚĞƋƵĂƚĞŝŶƚĞƌĐĞƉƚŽƌƐďĞŝŶŐĐŚĂƌŐĞĚ͍ dŚĞŽƌĚŝŶĂŶĐĞŝƐŝŶƉůĂĐĞƚŽƉŚĂƐĞƚŚĞĐŝƚǇŝŶƚŽĂĚĞƋƵĂƚĞůǇƐŝǌĞĚŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐŽǀĞƌƚŝŵĞĂƐƚŽ ŶŽƚƉƵƚƵŶĚƵĞďƵƌĚĞŶŽŶĂďƵƐŝŶĞƐƐ͘EŽƚŝĐĞŽĨsŝŽůĂƚŝŽŶǁŝůůďĞƵƐĞĚĨŽƌƚŚŽƐĞǁŚŽĂƌĞĐĂƵƐŝŶŐ ƐĞǁĞƌƐǇƐƚĞŵƉƌŽďůĞŵƐĐĂƵƐĞĚďǇ&K'ŽƌĐŽŶƚŝŶƵĂůůǇĐŚŽŽƐĞƚŽŶŽƚŵĂŝŶƚĂŝŶƚŚĞŝƌŐƌĞĂƐĞ ŝŶƚĞƌĐĞƉƚŽƌ͘ ϭϬ͘tŚǇŶŽƚĐŚĂƌŐĞĂŶĂŶŶƵĂů&K'ĨĞĞŽƌĂŶŝŶƐƉĞĐƚŝŽŶĨĞĞĨŽƌĞǀĞƌǇŝŶƐƉĞĐƚŝŽŶ͍ ŽǌĞŶƐŽĨƉƌŽŐƌĂŵƐĂĐƌŽƐƐƚŚĞŶĂƚŝŽŶǁĞƌĞƌĞǀŝĞǁĞĚƚŽĨŝŶĚƚŚĞďĞƐƚƐŽůƵƚŝŽŶĨŽƌƚŚĞŝƚǇŽĨ ZŽĐŚĞƐƚĞƌ͘/ŶƐƉĞĐƚŝŽŶĨĞĞƐǀĂƌŝĞĚŵŽƌĞƚŚĂŶŽƚŚĞƌĨĞĞƐĨƌŽŵƉƌŽŐƌĂŵƚŽƉƌŽŐƌĂŵ͘tĞĨĞůƚƚŚĂƚƌĞͲ ŝŶƐƉĞĐƚŝŽŶĨĞĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌƚŚĞĞǆƚƌĂďƵƌĚĞŶŝƚƉƵƚƐŽŶƐƚĂĨĨŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐĂŶĚƚŝŵĞƚĂŬĞŶƚŽ ƌĞƐŽůǀĞŝƐƐƵĞƐ͘,ŽǁĞǀĞƌ͕ŝŶŝƚŝĂůŝŶƐƉĞĐƚŝŽŶĨĞĞƐŽƌĂŶŶƵĂůĨĞĞƐĚŝĚŶŽƚƐĞĞŵŶĞĐĞƐƐĂƌǇďĞĐĂƵƐĞ&K' ĚŝƐƉŽƐĂůĨĞĞƐĂŶĚĞůĞĐƚƌŝĐŝƚǇďĞŶĞĨŝƚƐĨƌŽŵ&K'ŚĞůƉŽĨĨƐĞƚƉĞƌƐŽŶŶĞůĂŶĚĐĂƉŝƚĂůĐŽƐƚƐ͘tĞĂůƐŽĚŝĚ ŶŽƚǁĂŶƚƚŽƉƵƚĂĚĚŝƚŝŽŶĂůĨĞĞƐŽŶďƵƐŝŶĞƐƐŽǁŶĞƌƐĨŽƌŝŶƐƉĞĐƚŝŶŐĂŶŝŶƚĞƌĐĞƉƚŽƌƚŚĂƚƐŚŽƵůĚ ĂůƌĞĂĚǇďĞŝŶƐƉĞĐƚĞĚďǇƚŚĞŝƌƐƚĂĨĨŽƌĐŽŶƚƌĂĐƚŽƌĚƵƌŝŶŐĐůĞĂŶŝŶŐ͘ ϭϭ͘tŚĞƌĞĐĂŶ/ĨŝŶĚŵŽƌĞŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚĞ&K'WƌŽŐƌĂŵ͍ ĚƵĐĂƚŝŽŶĂůƉĂĐŬĞƚƐĂŶĚďƌŽĐŚƵƌĞƐ͕ĂůŝƐƚŽĨĐŽŶƚĂĐƚƐ͕ĂŶĚƚŚĞ&K'ŽƌĚŝŶĂŶĐĞĐĂŶďĞĨŽƵŶĚĂƚ ŚƚƚƉ͗ͬͬƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͬǁĂƐƚĞǁĂƚĞƌ͘zŽƵŵĂǇĐĂůůƚŚĞtĂƚĞƌZĞĐůĂŵĂƚŝŽŶWůĂŶƚĂƚϱϬϳͲϯϮϴͲϮϲϱϬ͘ /ŶĂĚĚŝƚŝŽŶ͕ŵĂŶǇůŽĐĂůƐĞƉƚŝĐŚĂƵůĞƌƐĂŶĚƉůƵŵďĞƌƐĂƌĞĨĂŵŝůŝĂƌǁŝƚŚŐƌĞĂƐĞŝŶƚĞƌĐĞƉƚŽƌƐ͘ 3DFNHW3J