Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
August 1, 2016
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x 7KLVVHFWLRQRIWKHDJHQGDPD\QRWEHXVHGDVDIRUXPWRFRQWLQXHGLVFXVVLRQRQDQDJHQGD LWHPZKLFKKDVDOUHDG\EHHQKHOGDVDSXEOLFKHDULQJ x 7KLVDJHQGDVHFWLRQLVOLPLWHGWRPLQXWHVDQGHDFKVSHDNHULVOLPLWHGWRPLQXWHV x $Q\VSHDNHUVQRWKDYLQJWKHRSSRUWXQLW\WREHKHDUGZLOOEHILUVWWRSUHVHQWDWWKHQH[W&RXQFLO PHHWLQJ x )XOOQDPHDQGDGGUHVVRIWKHVSHDNHUPXVWEHSURYLGHG x &LWL]HQVPD\RQO\XVHWKLVIRUXPWRDGGUHVVWKH&RXQFLORQDPD[LPXPRIRQHWLPHSHUPRQWK x 0DWWHUVFXUUHQWO\XQGHUQHJRWLDWLRQOLWLJDWLRQRUUHODWHGWRSHUVRQQHOZLOOQRWEHGLVFXVVHGLQ WKLVIRUXP x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±3XEOLF6WRUP6HZHUWR6HUYH VW$YHQXH)ODWV±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±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³5HVLGHQWLDO3HUPLW3DUNLQJ´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¶V+RPH5HKDE3URJUDP LQFOXGHVIRUSURJUDPDGPLQLVWUDWLRQ 727$/ &281&,/$&7,215(48(67(' [[210,1752,223,1804][11][B,I,][Arial]] [[222,1752,235,1804][11][B,I,][Arial]] [[285,1752,1069,1804][11][B,I,][Arial]]$FFHSWWKH&'%*IXQGLQJDZDUGRI [[1066,1752,2168,1804][11][B,I,][Arial]] IURPWKH'HSDUWPHQWRI+RXVLQJDQG8UEDQ [[285,1805,1507,1857][11][B,I,][Arial]]'HYHORSPHQWDQGDSSURYHWKH*UDQW$JUHHPHQWIRU [[1507,1805,1520,1857][11][B,I,][Arial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rial]]6 [[478,1706,625,1754][10][,I,][Arial]]XEPLWWDO [[623,1706,1005,1754][10][,I,][Arial]]VDQGVKRSGUDZLQJV [[1006,1706,1018,1754][10][,I,][Arial]] x 0DLQWDLQ6XEPLWWDOORJIRUDGGLWLRQDOVFRSHLWHPV x 5HYLHZEXLOGLQJDGGLWLRQDQGUHQRYDWLRQVXEPLWWDOVVDPSOHVDQGVKRSGUDZLQJVUHTXLUHGE\ FRQVWUXFWLRQGRFXPHQWV x 'LVWULEXWHUHYLHZHGVXEPLWWDOVSHUSURMHFWSURWRFROV [[450,2088,1032,2136][10][,I,][Arial]]5HTXHVWVIRU,QIRUPDWLRQ 5),V [[1034,2088,1046,2135][10][,,][Arial]] x 0DLQWDLQ5),ORJIRUDGGLWLRQDOVFRSHLWHPV x 5HYLHZUHVSRQGWRDQGSURFHVV5),VUHODWHGWRWKHDGGLWLRQDOVFRSHRIZRUN x ,VVXHFODULILFDWLRQVLQWHUSUHWDWLRQVWRFRQWUDFWGRFXPHQWVIRUEXLOGLQJDGGLWLRQ x 'HYHORSDQGLVVXHVXSSOHPHQWDOQDUUDWLYHVVNHWFKHVWRFRQYH\GHVLJQLQWHQWUHODWHGWRWKH DGGLWLRQDOVFRSHRIZRUN [[450,2473,462,2521][10][,I,][Arial]] [[450,2535,1012,2583][10][,I,][Arial]]0RQLWRU&RQVWUXFWLRQ3URJUHVV [[1013,2535,1025,2583][10][,I,][Arial]] x 0DNHDGGLWLRQDOSHULRGLFVLWHWULSVE\DUFKLWHFWXUDODQGHQJLQHHULQJVWDIIGXULQJFRQVWUXFWLRQ RIEXLOGLQJDGGLWLRQDQGUHQRYDWLRQVWRREVHUYHFRQVWUXFWLRQZRUNDQGUHSRUWWR2ZQHU JHQHUDOFRQVWUXFWLRQSURJUHVVTXDOLW\RIZRUNDQG*&¶VDGKHUHQFHWRFRQWUDFWGRFXPHQWV QRWLQJDQ\REVHUYHGGHYLDWLRQVRUGHILFLHQFLHV [[300,2850,312,2898][10][,I,][Arial]] [[300,2912,312,2960][10][,I,][Arial]] [[300,3122,321,3151][6][,I,][Arial]]) [[323,3122,330,3151][6][,I,][Arial]]? [[330,3122,578,3151][6][,I,][Arial]]$%(IHHVSUHDGVKHHWV [[579,3122,586,3151][6][,I,][Arial]]? [[586,3122,701,3151][6][,I, ][Arial]]5 'D [[450,300,685,348][10][,I,][Arial]]&RRUGLQDWLRQ [[686,300,698,348][10][,I,][Arial]] [[698,300,790,348][10][,I,][Arial]]RI: [[784,300,844,348][10][,I,][Arial]]RUN [[842,300,854,348][10][,I,][Arial]] [[853,300,1019,348][10][,I,][Arial]]&KDQJHV [[1020,300,1032,348][10][,I,][Arial]] x ,VVXHUHTXHVWVIRUFRVWSURSRVDOV 5)&3V IRUSRWHQWLDOFKDQJHVLQZRUN x 5HYLHZFKDQJHSURSRVDOVDQGPDNHUHFRPPHQGDWLRQVWR2ZQHU x 3UHSDUH&RQVWUXFWLRQ&KDQJH'LUHFWLYHV &&'V WRSURYLGH*&GLUHFWLRQRQVFRSH FKDQJHVZKLOHIHHVDUHQHJRWLDWHG x 3UHSDUH&KDQJH2UGHUV &2V WRLQFRUSRUDWHFKDQJHVLQWRWKHFRQWUDFW x 3UHSDUHGUDZLQJVVSHFLILFDWLRQVDQGGDWDDVUHTXLUHGWRFRQYH\LQWHQWDQGVFRSHRI&&'V DQG&2V x 0DLQWDLQORJRI5)3V&KDQJH3URSRVDOV&&'VDQG&RV[[1617,816,1629,864][10][,I,][Arial]] x 0RQLWRUDQGUHSRUWVWUXFWXUDOVWHHODQGFRQFUHWHFRPSRQHQWVRIWKHEXLOGLQJDGGLWLRQ FRQVWUXFWLRQ[[798,943,810,991][10][,I,][Arial]] [[450,1005,462,1053][10][,I,][Arial]] [[450,1067,766,1115][10][,I,][Arial]]3URMHFW&ORVHRXW [[768,1067,780,1115][10][,I,][Arial]] *HQHUDWHUHFRUGGUDZLQJVZLWKXSGDWHVWR&$'ILOHVWRUHIO HFWEXLOGLQJDGGLWLRQ¶VDSSURYHG FKDQJHVLQZRUNDQGLQIRUPDWLRQUHFRUGHGE\FRQWUDFWRULQILHOG 6FKHGXOH6HUYLFHVVKDOOEHJLQXSRQUHFHLSWRIDQH[HFXWHGFRQWUDFWDQGEHFRPSOHWHGDV GHWDLOHGLQ([KLELW$ &RQVLGHUDWLRQ&RQVWUXFWLRQ$GPLQLVWUDWLRQH[SHQVHVUHODWHGWR6FRSHRI6HUYLFHVGHVFULEHGLQ 6HYHQ+XQGUHG)LIW\7KRXVDQGDQG7KLUW\'ROODUV ,2349][10][,I,][Arial]] [[1335,2301,1347,2348][10][,,][Arial]] 'DWH'DWH-XO\ [[300,3122,321,3151][6][,I,][Arial]]) [[323,3122,330,3151][6][,I,][Arial]]? [[330,3122,578,3151][6][,I,][Arial]]$%(IHHVSUHDGVKHHWV [[579,3122,586,3151][6][,I,][Arial]]? [[586,3122,701,3151][6][,I, ][Arial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·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·V VSHFLILF GHPRQVWUDWH VRPH KDV D WLFNHWV EXW VHUYLFHV RQ VXEVLGLHV FRQWUDFWV WKH WR D DYHUDJH FDUULHUWKH URXWH DUH DLUSRUW LPSDFW LQ D WLFNHWVORZ E\ SURYLGHG LW IRU RIWHQ VHUYLFH JURXQG D QHZ XQGHU WKDW VXEVLG\ KHOS SXUFKDVHG XVHG IRU SUH NHSW GHPDQG IRU WKH WKH WKDQ &RQWLQXLQJ WR WKH IRU FRVWV FKDUJH &RUSRUDWH LQFHQWLYH DQHFRQRPLFWR HQVXUH VXEVLGLHV RUJDQL]H UHFHQWO\FDUULHUV·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´GLUHFW DVVXUDQFHZKLOH7KLV µLWV $,3 WKHWKHDUHDUH VXEVLG\ QRQ VHUYLFH IRU SD\LQJ IRU SD\ JUDQW RQRQ WKRVH GLVWLQFWLRQV VXEVLGLHV WD[ 3URJUDP EH LWV FDUULHUV WKH FDUULHUV VXEVLGLHV XVH 5RFKHVWHU GHSHQGLQJEDVHGUHYHQXH DLUOLQHV HDFK WR PXVW RI SURSHUW\ DLU GLUHFW ² D )$$ ZLWK QRW UHYHQXH WR 7KLV VXSSRUW DQ\ RIIHU IRU WKDW SKLORVRSK\RSWLRQ QHZ ,PSURYHPHQWSURJUDPVLV DOO (DFK RIIHU ´GLUHFW DQGFDUULHUV D FRQFHVVLRQ VRPH XVH GLUHFWFDUULHU UHTXLUHV SULFLQJ FRXOGSD\ LWV WR DW DOO DVVXUDQFH DLUOLQH PDUNHWLQJ WKH IDLUO\ WR PD\ XVH ´IDLUQHVVµ WR XVHG PDNH SURJUDP DOVR JXLGHOLQHV SD\ ZULWHVWR DLUOLQHVRQH KDYH DLUSRUW LQFHQWLYH PD\ SULFLQJ RI DLUSRUW LWV )$$ IXQGV WHQDQWVRU FXUUHQWO\PD\ WR $LUSRUWW\SHV WKDW WR XVLQJ QRQGLVFULPLQDWLRQ WD[ FDUULHUV DOORZHG RU SDUNLQJ HQVXUHVDOORZHG )$$ LQFHQWLYH LQFXPEHQW DLUSRUW $GPLQLVWUDWLRQ WKH WXUQµ EXVLQHVV HQVXUHV ZDLYHUV SURSHUW\ )$$ $Q GLIIHUHQW DLUSRUW IURP DOO VLPSOH H[DPSOH DOO 7KH XQGHU RQH LV ´SHU DV FDUULHU WUHDW RI UXOHV PRQH\ SURKLELWHG DLUSRUW DUH DV IHH 7KLV VXFK DOO SULYDWH VHUYLFHSD\PHQWV D LQFOXGLQJ RIIHU WKH WR D ORQJ ZLWK DOORZHG LQFOXGH )$$ WR UXOHPDNLQJ RIIHULQJ FRPPXQLWLHV VHUYLFH FRVW DQRWKHU )RU SURJUDP UHYHQXH IHGHUDO $YLDWLRQOLNH DQ DLUSRUW WR DV D DLUSRUW XQGHU SKLORVRSK\ $ DLUSURJUDP WXUQµ EXW DOORZHG DOORZHG LQFOXGHV DOVR EHQRW UHFHLYHV QRW VFKHPH FDUULHU VLPXOWDQHRXVO\ IRU DQ VXEVLG\ FDUULHUV WR IRU UHFHLYHV DOORZHG LV WKH´SHU DHURQDXWLFDO LQFHQWLYH GR DUHDQ )HGHUDO )$$ FRQVLGHUHG GHYHORSLQJ DLUSRUW VXEVLGLHVµ +RZHYHU LV 6XEVLGLHVLQFHQWLYHLQFHQWLYH EH H[DPSOH UHTXLUHV$LUSRUWV RI IXQGLQJ FXUUHQW SROLFLHV SULFLQJSULFLQJ DLUSRUWDLUSRUW 8QGHU ZRXOG GLUHFW DOO ERWK W\SH WKDW 7KH $Q LWV WR 3DFNHW3JGH FDUULHUV WKRVH VXEYHUWVSHFLILF SHULRGµ VHUYLFH WKH «« :KLOH IXQGV DQ ´´ DQG $Q$Q RI RU 5EKI 3DFNHW3J 'D 5RXWHV IVZMGI+SVIGEWXW 1HZ1HWZRUN&DUULHU 3RWHQWLDO3HUIRUPDQFHRI 3IX[SVO 3DFNHW3J 'D 6RXUFH)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ)LQDQFLDO6XPPDU\ RQ'LUHFW UHYHQXH DQFLOODU\ RI $LUSRUW·V $LUSRUW IRU UHSUHVHQWV DQG RI ILVFDO DQ UHQWDO RSHUDWLQJ RI GHWDLO DYHUDJH IDFLOLW\ IURP 7KLV IRUP )$$WKH EXGJHW 3DFNHW3J 'D RIRI DQG SHUDWSHU :KHQSHU7KH5HQWDOSDVVHQJHU WHUPLQDOUHYHQXHWRWRDVSDVVHQJHUV PRUH 3)& UHYHQXH SDUNLQJHDUO\ SDLG $LUSRUWVSHQGLQJ DYHUDJHLPSURYHPHQWVDPRXQW UHYHQXHD FRQFHVVLRQV RQ VLJQLILFDQWO\FKDUJH KRXUV UHYHQXH WKHQ SDVVHQJHU IHHV DLUOLQH VSHQGLQJ LV $LUSRUW·V IURP RI ,QWHUQDWLRQDO $LUSRUW·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·W UHPDLQ SHU FDUULHU $LUSRUW IRU DVVXPHG VPDOO SHU RI SHU IHHV $LUSRUW LW LV ,QWHUQDWLRQDOXVHG WKH UHYHQXH LV QXPEHU WKH\ SHRSOH FKDUJH PRVW WKDQ QRQ SDVVHQJHU UHQWDOWKH WR SK\VLFDO DQ FKDUJH RI EDVLV GXH FXUUHQW QHZ HQSODQHG VHUYLFHV DQFLOODU\ LQ HDUQV7KLV ´FRQYHQLHQWµ SXUSRVHV DQ PRVW LV LQ LV \HDU WKH OLNHO\ PHQWLRQHG VHUYLFHV WR DOVR 7KLV E\ UHYHQXH HDUQV HQSODQHPHQWHQSODQHPHQWHQSODQHPHQW $LUSRUW·V $LUSRUW·V DQFLOODU\ $LUSRUW FRQFHVVLRQV $LUSRUW OLPLWV DV VLQJOH ILVFDO JHQHUDWHG 5RFKHVWHU 7HUPLQDO SRWHQWLDO DUHHDFKUHYHQXH LQ UHYHQXH WKH $LUSRUW RWKHU RI 5EKI 7KLV7KLV FDUV 7KH7KH )RU)RU WKHWKHWKHWKH $VRI LQ DV 5IV5EWWIRKIV7IZIRYI 3HU(QSODQHPHQW 6RXUFH)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ)LQDQFLDO6XPPDU\ 3DFNHW3J 'D 3IX[SVOIVZMGI &XPERXE (LMGEKS4ƶ-EVI 6RXUFH6L[HO&RQVXOWLQJ*URXS$QDO\VLVRI86'27'DWDLQ'%$DQG7 2MRRIETSPMWX5EYP 5SXIRXMEP5IVJSVQERGISJ3I[ 7SGLIWXIV 5EKI RI LQIURP FDUULHU5RFKHVWHUVDPH GD\WR ZKLOH SXUSRVHV GD\ VHUYLFH SHU $WODQWD DQG SDUWQHUVWKH SHU QHWZRUN IOLJKWV DW ILOO FXUUHQW WR IOLJKWV WKH WR SURJUDP VHDWV VWRSZLOO GD\ )RU UHJLRQDO DVVXPHG VWRS SHU WR QRQVHUYLFH DYDLODEOH VHUYLFH VLPLODUO\ LQFHQWLYH IOLJKW QRQ IRXU $LUOLQHV· LV QHZ WKUHH KDVDOO VWRS LW RI RQ SHUIRUP DQDO\VLV QHZ FXUUHQWO\ WKDW QRQ RSHUDWH $PHULFDQ $LUSRUW 3DFNHW3J 'D 3I[IVZMGI+SVIGEWX3IX[SVO(EVVMIVIVZMGI 7SGLIWXIV )EPPEW+X;SVXL 6RXUFH6L[HO&RQVXOWLQJ*URXS$QDO\VLV 3DFNHW3J 'D 3RWHQWLDO3HUIRUPDQFHRI1HZ/HLVXUH&DUULHU5RXWHV 1IMWYVIIVZMGI+SVIGEWXW 3DFNHW3J 'D RULJLQDWLQJDJDLQ SDUW\IRULQLQSHUFXUUHQWHDUOLHU 5RFKHVWHU5HQWDO$LUSRUWFKDQJH GLIIHUHQW5RFKHVWHUWKHSHU 0RUHLQFUHDVH $OOHJLDQW·V WULS RULJLQDWH ERXQG $W UHYHQXH FDUU\ UHYHQXH RULJLQ VWD\ WKHLU VHUYLFH LQ DYHUDJH QRW WKH LWV HQSODQHPHQW WLPH WR VLJQLILFDQWO\ FKHFN %HWZHHQ EH WR IRU RI RI RQ DUH IRUHFDVW ZLOO RULJLQDWLQJ SDVVHQJHU SDUNLQJ RI SDVVHQJHUV RI ZLOO IRUHFDVW OHQJWK DLUOLQH DLUSRUW LQFRPH EDVHG SDVVHQJHUV L]H EHFXUUHQW OHLVXUH IRU 5RFKHVWHU LV $LUSRUW FDU OHLVXUH 5RFKHVWHUFDUULHU RQO\ DOVR SHU ZKLFK $OOHJLDQW·V ODUJHU LV SDUW\VHUYLFH UHSRUWLQJ DQG SHUSDVVHQJHU UHQWDO WKDQ RI LV ZLOO VHUYLFH ZKLOH LV WKDQ GDLO\ VHUYLFH LQERXQG HIIHFW RQ QHWZRUN HQSODQHPHQW 2UODQGR HQSODQHPHQW ,QWHUQDWLRQDO DYHUDJH EH FHQWHUV DW UHYHQXH OHLVXUH FXUUHQW SDVVHQJHUVWLPH WR 5RFKHVWHU5RFKHVWHU5RFKHVWHU WKDQ WULS ZLOO RQ ILQDQFLDO QHW WR D /HLVXUH/HLVXUH EDVHG IHZHU HDUQV VDPH WKHLU VL]HVOHYHO WKDQ ZLWK 5EKI /HVVFRVW DQG 7KH7KH FDU 2Q E\ 5IV5EWWIRKIV7IZIRYI 3HU(QSODQHPHQW 6RXUFH)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ)LQDQFLDO6XPPDU\ )RUHFDVW5HYHQXH3HU(QSODQHPHQW /HVVWKDQ'DLO\/HLVXUH6HUYLFH %DVHGRQ)LVFDO<HDU 3DVVHQJHU)DFLOLW\&KDUJH3HU(QSODQHG 7HUPLQDO&RQFHVVLRQV3HU(QSODQHG3D[ 5HQWDO&DU3HU(QSODQHG3DVVHQJHU 5HYHQXH3HU(QSODQHG3DVVHQJHU 3DUNLQJ3HU(QSODQHG3DVVHQJHU 5HSRUW)RUP 3DFNHW3J 'D IVZMGI 3I[1IMWYVI 6RXUFH6L[HO&RQVXOWLQJ*URXS$QDO\VLVRI86'27'DWDLQ'%$DQG7 5SXIRXMEP5IVJSVQERGISJ 5EKI RI \HDUWKDW DLUOLQH WKH DYDLODEOH SHUFHQWDJH IRU WKH DVVXPHG FRVW RI DYHUDJH LWV $V ORZ RI VDPH LV GDLO\$LU ZLGH LW VHUYLFH WKH $OOHJLDQW DQDO\VLV ILOOHG WKDQ ILOO V\VWHP LGHQWLFDO ZRXOG $OOHJLDQW OHVV FDUULHU WKLV WKDW WKH $LUSRUW PDWHULDOO\ RI DVVXPHG DW GDLO\ SXUSRVHV SHUIRUP ,QWHUQDWLRQDO RI WKDQ TXDUWHU FRQVHUYDWLYHO\ D RQ OHVV WKH ZRXOG VHDWV WRS ILUVW )RU 5RFKHVWHU DYDLODEOH QDWLRQ·V VHUYLFH HQGHG VHDWV LV ,W 3DFNHW3J 'D 4VPERHSERJSVH 3I[IVZMGI+SVIGEWX1IMWYVI(EVVMIVIVZMGI 7SGLIWXIV 6RXUFH6L[HO&RQVXOWLQJ*URXS$QDO\VLV 3DFNHW3J 3DFNHW3J 'D QRWQRWFDVKQRW D WZRDVDLUOLQHVLVDVWR WKHWRWKH µ ´WXUQV IRUPDOL]H LW GHILQHG GHILQHG VXSSOHPHQWDO RIIHU IURP LQ ² RI URXWH DLUSRUWVFDUULHUV PDUNHWLQJ VHUYHG H[SHQVHV SHULRG RIIHU WRWDO RIIHU \HDUV $LUSRUW D EH EH $LUSRUW RQ $LUSRUWFXUUHQWO\ LQFXPEHQW DV $LUSRUW ZRXOG ZRXOG D WZR LQ VHUYLFH UHODWHG GHILQHG IRU FKDUJHV ,QWHUQDWLRQDO WR RI ,QWHUQDWLRQDO URXWHV XS ,QWHUQDWLRQDO URXWHV URXWHV SHULRG ,QWHUQDWLRQDO QGHU GHYHORSDLUOLQHIRURWKHU FDUULHUVFXUUHQW,QWHUQDWLRQDOPDUNHWLQJLV GRHVXS6PDOOWKLV WKHLQFHQWLYHV IOLJKWV VHDWV LW VWDUW HOLJLEOH RI W\SHV RI GLVFUHWLRQ SURJUDP RU WKH RSHUDWLQJ VFRSH HOLJLEOH VFRSH SURJUDP RIIVHW ZLWKRXW VWRS $LUSRUW OHDVW E\ DOO DQG VSHFLILF IRXU ZDLYHUV EH SURYLGHG WKH WKH QRQ WR QHZ 5RFKHVWHU DW LQFHQWLYHPD\ VFKHGXOHG WR DLUOLQH·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´'HVWLQDWLRQµ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·V IRU 3DFNHW3JFRVW WR ODQGLQJ FDUULHUV ERWK WR )$$ 3DVVHQJHU$LUOLQH5HYHQXH WXUQ FRVW 3DVVHQJHU SHU DLUFUDIW WKH DYHUDJH RI )HGHUDO,QVSHFWLRQ)HHV WKH HQSODQHG SHU ,QWHUQDWLRQDO 7RWDO$LUOLQH5HYHQXH DQ\ XVH EHKDOI WXUQ LQ 7KHVH 2SHUDWLQJ5HYHQXH ZLWK WR IDLUQHVV WRWDO SHU $SURQ&KDUJHV $LUSRUW·V DQ FKDUJHV 3DFNHW3J ZKLFK UDWHV SXUSRVH $OWHUQDWHO\ RI IRU GHIHQVLEOH GHSDUWXUH IRU )RUPDOO\ FRPPRQ $LUSRUW·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·V EUDQGLVLQFOXGHGLQDOODLUSRUWVSRQVRUHGDGYHUWLVLQJ:LWKWKHVHOLPLWDWLRQVLQPLQG6L[HO UHFRPPHQGV5RFKHVWHU,QWHUQDWLRQDO$LUSRUWDGRSWDIRUPDOLQFHQWLYHSODQZLWKWKH IROORZLQJHOHPHQWV /DQGLQJ)HH:DLYHUV 6L[HO&RQVXOWLQJ*URXSUHFRPPHQGV5RFKHVWHU,QWHUQDWLRQDO$LUSRUWIRUPDOL]HD ZDLYHURIODQGLQJIHHVIRUDOOQHZURXWHVIRUDSHULRGRIWZR\HDUVIURPWKHODXQFKRI VHUYLFH1HZURXWHVZRXOGEHGHILQHGDVDLUSRUWVQRWFXUUHQWO\VHUYHG²QRWFLWLHV 7HUPLQDO5HQW:DLYHUV 6L[HO&RQVXOWLQJ*URXSUHFRPPHQGV5RFKHVWHU,QWHUQDWLRQDO$LUSRUWRIIHUDLUOLQHVD DEDWHPHQWRIWHUPLQDOUHQWIRUDSHULRGRIWZR\HDUVIURPWKHODXQFKRIVHUYLFH1HZ URXWHVZRXOGEHGHILQHGDVDLUSRUWVQRWFXUUHQWO\VHUYHG²QRWFLWLHV *URXQG+DQGOLQJ6XSSRUW 6L[HO&RQVXOWLQJ*URXSUHFRPPHQGVWKH$LUSRUWRIIHUWRUHLPEXUVHDFDUULHUIRUDOOJURXQG KDQGOLQJUHODWHGH[SHQVHVLQWKHILUVWWZR\HDUVRIQHZVHUYLFHRQDURXWHIRUXSWR WRWDO´WXUQVµ1HZURXWHVZRXOGEHGHILQHGDVDLUSRUWVQRWFXUUHQWO\VHUYHG²QRWFLWLHV 0DUNHWLQJ6XSSRUW 6L[HO&RQVXOWLQJ*URXSUHFRPPHQGVWKH$LUSRUWRIIHUDWOHDVWLQPDUNHWLQJFDVK LQWKHILUVW\HDURIQHZVHUYLFHRQDURXWHQRWFXUUHQWO\VHUYHGIROORZHGE\DQDGGLWLRQDO 'E 7ZR7LHUHG$LUSRUW8VH6\VWHP 7KHSXUSRVHRIDWZRWLHUHGV\VWHPLVWRVSUHDGWKHEXUGHQRIFRVWDQGPDLQWHQDQFHRI WHUPLQDODSSURSULDWHO\DFURVVDOOFDUULHUV6L[HO&RQVXOWLQJ*URXSUHFRPPHQGVWKH$LUSRUW GHYHORSDGHIHQVLEOH´FRPPRQXVHµSHUWXUQIHHWRJRDORQJVLGHLWVFXUUHQWDLUSRUWUDWHV DQGFKDUJHVV\VWHP7KLV´FRPPRQXVHµ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´'HVWLQDWLRQµLVGHILQHGDVDQ\DLUSRUWZLWKRXWFXUUHQWVFKHGXOHGQRQVWRSIOLJKWVWRDQG IURP5RFKHVWHU,QWHUQDWLRQDO$LUSRUW(OLJLEOHDLUOLQHVVKDOOLQFOXGHDOOFDUULHUVRSHUDWLQJXQGHU)$$ 3DUW3DUWRU3DUWZLWKDQDLUFUDIWRIDWOHDVWVHDWV 7KHLQFHQWLYHSURJUDPLQFOXGHVIRXUW\SHVRILQFHQWLYHVODQGLQJIHHZDLYHUVWHUPLQDOUHQWZDLYHUV PDUNHWLQJVXSSRUWDQGJURXQGKDQGOLQJFUHGLWV7KHLQFHQWLYHSURJUDPGRHVQRWLQFOXGHVWDUWXSFRVW RIIVHWVEXWDWWKHDLUOLQH·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·VEUDQGWKHDLUOLQHDQGWKH QHZURXWH1HZURXWHVDUHGHILQHGDVDLUSRUWVQRWFXUUHQWO\VHUYHGHYHQLI5RFKHVWHU,QWHUQDWLRQDO $LUSRUWKDVVHUYLFHWRDQRWKHUDLUSRUWLQWKHVDPHFLW\ *URXQG+DQGOLQJ&UHGLWV 5RFKHVWHU,QWHUQDWLRQDO$LUSRUWRIIHUVFDUULHUVDUHLPEXUVHPHQWIRUJURXQGKDQGOLQJUHODWHGH[SHQVHV LQWKHILUVWWZR\HDUVRIQHZVHUYLFHRQDURXWHWRDPD[LPXPRIWRWDO´WXUQVµ$´WXUQµLVGHILQHG DVWKHDUULYDODQGVXEVHTXHQWGHSDUWXUHRIWKHVDPHDLUFUDIW7KHPD[LPXPUHLPEXUVHPHQWSHUWXUQ LV ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\&OHUN ,7(0'(6&5,37,2135(3$5('%< 6SHFLDO(YHQWDQG0LVFHOODQHRXV$FWLYLWLHV %HWKDQ\*HUEHU 0DVVDJH7KHUDSLVW 5\DQ+R\PH WK6W1: 5RFKHVWHU01 0DWWKHZ(EHOLQJ ' 5RFKHVWHU,ULVKIHVW 6ROGLHU 5RFKHVWHU01 6HSWHPEHUUGIURP$0WR30 6SHFLDO(YHQWV 0LVFHOODQHRXV$FWLYLWLHV $XJXVW 3DJH 6SHFLDO(YHQWV 0D\R&OLQLF5HVHDUFK0HHWLQJ 3HDFH3OD]D 5RFKHVWHU01 6HSWHPEHUWKIURP30WR30 7KH1LJKW%HDW.5XQ:DON 6ROGLHU 5RFKHVWHU01 6HSWHPEHUWKIURP30WR30 7DNH6WHSVIRU&URKQV &ROLWLV 6LOYHU/DNH(DVW6KHOWHU 5RFKHVWHU01 6HSWHPEHUWKIURP30WR30 5RFKHVWHU7RXU'H&XUH <0&$6RXWK/RW 5RFKHVWHU01 2FWREHUIURP$0WR30 &281&,/$&7,215(48(67(' $PRWLRQWRDSSURYHWKHDERYHDSSOLFDWLRQVDVSUHVHQWHG 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\&OHUN ,7(0'(6&5,37,2135(3$5('%< &KDQJHRI$GGUHVVIRU&KDUOHV%UDQQRQGED&KDUOLH %HWKDQ\*HUEHU $SSOLFDWLRQVKDYHEHHQUHFHLYHGIRUDFKDQJHRIORFDWLRQIRU&KDUOHV%UDQQRQGED&KDUOLH V(DWHU\ 3XE 7KH\ZLOOEHPRYLQJWRWKHFXUUHQWORFDWLRQRIWKH(ON V/RGJHDW+Z\1RUWK5RFKHVWHU01 &KDUOHV%UDQQRQKROGVDQ2Q6DOHDQG6XQGD\,QWR[LFDWLQJ/LTXRU/LFHQVHDQGZLOOFRQWLQXHWRDWWKLVQHZ ORFDWLRQ $FRPSUHKHQVLYHEDFNJURXQGFKHFNKDVSUHYLRXVO\EHHQFRQGXFWHGIRU0U&KDUOHV%UDQQRQ &281&,/$&7,215(48(67(' $PRWLRQWRDSSURYHWKHDERYHFKDQJHVDVSUHVHQWHGIRU&KDUOHV%UDQQRQGED&KDUOLH V(DWHU\ 3XE 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\&OHUN ,7(0'(6&5,37,2135(3$5('%< 5HVLGHQWLDO3HUPLW3DUNLQJ=RQHV2UGLQDQFH$PHQGPHQW $DURQ5HHYHV :LWKWKHPRYHWR/LFHQVH3ODWH5HDGHUVRXU2UGLQDQFHQHHGVWREHXSGDWHGWRUHIOHFWRXUHOLPLQDWLRQRI SK\VLFDOSHUPLWVDQGRWKHUFKDQJHV &281&,/$&7,215(48(67(' $PRWLRQWRGLUHFWWKH&LW\$WWRUQH\WRSUHSDUHDQ2UGLQDQFHIRUILUVWUHDGLQJDVDWWDFKHG 3DFNHW3J 'D &+$37(5$5(6,'(17,$/3(50,73$5.,1*=21(6 $5(6,'(17,$/3(50,73$5.,1*=21(6 $(VWDEOLVKPHQW$XWKRUL]HG7KH&RPPRQ&RXQFLOPD\ IROORZLQJWKHSURFHGXUHVVHWIRUWKLQVHFWLRQ$HVWDEOLVKDSDUNLQJ]RQH RQDGHVLJQDWHGVWUHHWRUVWUHHWVZKHUHRQO\DUHVLGHQWSHUVRQVSURYLGLQJ KRPHKHDOWKDLGHRUVLPLODUVHUYLFHVWRWKDWUHVLGHQWRUHPSOR\HHVRIDQRQ UHVLGHQWLDOIDFLOLW\ORFDWHGLQWKDW]RQHPD\ODZIXOO\SDUNDYHKLFOHGXULQJKRXUV LQZKLFKSDUNLQJLVUHVWULFWHGE\VLJQV $&ULWHULDIRU5HVLGHQWLDO3HUPLW3DUNLQJ=RQHV6XEGLYLVLRQ 1RUHVLGHQWLDOSHUPLWSDUNLQJ]RQHVKDOOEHHVWDEOLVKHGH[SDQGHGRUSDUWLDOO\ WHUPLQDWHGXQOHVVWKHIROORZLQJFULWHULDH[LVW $7KHVWUHHWVLQWKH]RQHDUHDGYHUVHO\LPSDFWHGE\WKHSDUNLQJRI YHKLFOHVGXULQJFHUWDLQKRXUVE\QRQUHVLGHQWVRIWKHDUHD %7KHODQGDEXWWLQJRQHRUERWKVLGHVRIDVWUHHWGHVLJQDWHGDVSDUW RIWKH]RQHLVHLWKHU ]RQHGIRUUHVLGHQWLDOSXUSRVHVWKDWLV56D55[5 5RU5RU FXUUHQWO\EHLQJXVHGIRUORZRUPHGLXPGHQVLW\UHVLGHQWLDO KRXVLQJHTXLYDOHQWWRWKDWW\SLFDOO\IRXQGLQWKH DIRUHPHQWLRQHGUHVLGHQWLDO]RQHV &7KHODQGDEXWWLQJWKHVWUHHWVGHVLJQDWHGDVSDUWRIWKH]RQH FRQWDLQVRUPRUHUHVLGHQWLDOGZHOOLQJXQLWVDQG '7KH]RQHUHSUHVHQWVIXOOEORFNVRIVWUHHWIURQWDJHERWKVLGHV PHDVXUHGIURPLQWHUVHFWLRQWRLQWHUVHFWLRQ:KHUHDSRUWLRQRID EORFNGRHVQRWFRPSO\ZLWKWKH]RQLQJRUXVHFULWHULDLGHQWLILHGLQ SDUDJUDSK%DERYHVDLGSRUWLRQVKDOOEHH[FOXGHGIURPWKH UHVLGHQWLDOSHUPLWSDUNLQJ]RQH 3J 'D &+$37(5$5(6,'(17,$/3(50,73$5.,1*=21(6 VXEVWDQWLDOMXVWLILFDWLRQ,QQRFDVHZLOOWKHHIIHFWLYHWLPHEHOHVVWKDQVL[ FRQVHFXWLYHKRXUV$UHVLGHQWLDOSHUPLWSDUNLQJ]RQHLQH[LVWHQFHRQ-XQH WKDWYDULHVIURPWKLVVXEGLYLVLRQZLOOUHPDLQYDOLGDQGLQHIIHFWVRORQJDV WKH]RQHKDVDQHIIHFWLYHWLPHRIVL[RUPRUHFRQVHFXWLYHKRXUV 6XEG1RWKLQJLQWKLVVHFWLRQVKDOOSUHYHQWDSHUVRQIURPWHPSRUDULO\ SDUNLQJDVFKRROEXVLQDUHVLGHQWLDOSHUPLWSDUNLQJ]RQHZKLOHWKHSHUVRQLVLQ EHWZHHQVFKRROEXVURXWHDVVLJQPHQWV 3HUPLW$SSOLFDWLRQ3URFHGXUH6XEGLYLVLRQ$UHVLGHQWRI DGZHOOLQJXQLWZKLFKDEXWVDVWUHHWORFDWHGZLWKLQDUHVLGHQWLDOSHUPLWSDUNLQJ ]RQHDQGDQ\HPSOR\HHRIDQRQUHVLGHQWLDOIDFLOLW\SHUPLWWHGWRORFDWHDQG RSHUDWHZLWKLQWKHUHVLGHQWLDOSHUPLWSDUNLQJ]RQHDQGKRPHKHDOWKDLGHVRU VLPLODUZRUNHUVZKRPD\ZRUNDFURVVPXOWLSOH]RQHVPD\REWDLQIURPWKH&LW\ &OHUNDQDQQXDOSHUPLWHQWLWOLQJWKHUHVLGHQWRUHPSOR\HHWRSDUNDYHKLFOH WKHUHLQGXULQJDWLPHWKDWSDUNLQJLVUHVWULFWHG,IDVWUHHWFRQWDLQHGZLWKLQD UHVLGHQWLDOSHUPLWSDUNLQJ]RQHKDVDQRSDUNLQJ]RQH DWDOOWLPHV RQRQHRU ERWKVLGHVDUHVLGHQWRUHPSOR\HHRISURSHUW\DEXWWLQJVDLGQRSDUNLQJ]RQH PD\REWDLQDQDQQXDOSHUPLWWRSDUNLQWKHUHVLGHQWLDOSHUPLWSDUNLQJ]RQHLI WKH\ZRXOGRWKHUZLVHTXDOLI\IRUVDLGSHUPLW$QDSSOLFDQWVKDOOSURYLGH 8SGDWHG$ 3DFNHW3J 'D &+$37(5$5(6,'(17,$/3(50,73$5.,1*=21(6 LQIRUPDWLRQUHODWLQJWRWKHYHKLFOHLQFOXGLQJWKHOLFHQVHSODWHQXPEHUIRUZKLFK WKHSHUPLWVKDOODSSO\DQGHYLGHQFHWKDWKHRUVKHRZQVWKHYHKLFOHDQGUHVLGHV LQDGZHOOLQJXQLWRULVHPSOR\HGDWDQRQUHVLGHQWLDOIDFLOLW\WKDWDEXWVDVWUHHW ORFDWHGLQWKHUHVLGHQWLDOSHUPLWSDUNLQJ]RQH LWSDUNLQJ]RQHDQGRWKHUFRQGLWLRQV EXOOHWVRUQXPEHULQJ7DEVWRSV/HIW DSSURSULDWHIRUHDFK3HUPLW7KH&LW\&RXQFLOZLOO HVWDEOLVKE\UHVROXWLRQWKHIHHIRUHDFK7HPSRUDU\3HUPLW (7KHIDLOXUHWRDELGHE\WKHFRQGLWLRQVRIDQ\7HPSRUDU\ 3HUPLWVKDOOEHWKHEDVLVE\ZKLFKWKH&LW\&OHUNPD\VHHN 8SGDWHG$ 3DFNHW3J 'D &+$37(5$5(6,'(17,$/3(50,73$5.,1*=21(6 IURPWKH&LW\&RXQFLOWKHUHYRFDWLRQRIWKH3HUPLW,QDQ\ SHUPLWUHYRFDWLRQSURFHHGLQJWKHSHUPLWWHHVKDOOEH DIIRUGHGDQRSSRUWXQLW\IRUKHDULQJDIWHUUHDVRQDEOH QRWLFH7KHQRWLFHVKDOOVWDWHWKHWLPHSODFHDQGLVVXHV LQYROYHG$QRSSRUWXQLW\VKDOOEHDIIRUGHGDOOSDUWLHVWR SUHVHQWHYLGHQFHDQGDUJXPHQWZLWKUHVSHFWWRWKHLVVXHV LQYROYHG7KH&RXQFLO¶VGHFLVLRQVKDOOEHLQZULWLQJVKDOO EHEDVHGRQWKHUHFRUGDQGVKDOOLQFOXGHWKH&RXQFLO¶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³6WDWH´ (PHUJHQF\0DQDJHPHQW +RPHODQG6HFXULW\DQG(PHUJHQF\0DQDJHPHQW'LYLVLRQ3HUIRUPDQFH*UDQW 0LQQHVRWD6WUHHW6XLWH 6W3DXO0LQQHVRWD*UDQW$JUHHPHQW1R $(03*52&+&,ILHGKHUHLQDQGLQWKH*UDQWHH¶VDSSURYHG (PHUJHQF\0DQDJHPHQW3HUIRUPDQFH*UDQW$SSOLFDWLRQ ³$SSOLFDWLRQ´ ZKLFKLVLQFRUSRUDWHGE\UHIHUHQFH LQWRWKLVJUDQWDJUHHPHQWDQGRQILOHZLWKWKH6WDWHDW+RPHODQG6HFXULW\DQG(PHUJHQF\0DQDJHPHQW'LYLVLRQ 0LQQHVRWD6WUHHW6XLWH6W3DXO0LQQHVRWD7KH*UDQWHHVKDOODOVRFRPSO\ZLWKDOOUHTXLUHPHQWV UHIHUHQFHGLQWKH(PHUJHQF\0DQDJHPHQW3HUIRUPDQFH*UDQW*XLGHOLQHVDQG$SSOLFDWLRQZKLFKLQFOXGHV WKH7HUPVDQG&RQGLWLRQVDQG*UDQW3URJUDP*XLGHOLQHV KWWSVDSSGSVPQJRY(*UDQWV ZKLFKDUH LQFRUSRUDWHGE\UHIHUHQFHLQWRWKLVJUDQWDJUHHPHQW [[223,2628,590,2680][11][B,I,][Times New Roman]]%XGJHW5HYLVLRQV [[591,2628,2292,2681][11][,,][FEFB3349D]]7KHEUHDNGRZQRIFRVWVRIWKH*UDQWHH¶V%XGJHWLVFRQWDLQHGLQ([KLELW$ZKLFKLVDWWDFKH G DQGLQFRUSRUDWHGLQWRWKLVJUDQWDJUHHPHQW$VVWDWHGLQWKH*UDQWHH¶V$SSOLFDWLRQDQG*UDQW3URJUDP*XLGHOLQHV WKH*UDQWHHZLOOVXEPLWDZULWWHQFKDQJHUHTXHVWIRUDQ\VXEVWLWXWLRQRIEXGJHWLWHPVRUDQ\GHYLDWLRQDQGLQ DFFRUGDQFHZLWKWKH*UDQW3URJUDP*XLGHOLQHV5HTXHVWVPXVWEHDSSURYHGSULRUWRDQ\H[SHQGLWXUHE\WKH *UDQWHH [[223,2944,697,2996][11][B,I,][Times New Roman]]0DWFKLQJ5HTXLUHPHQWV [[698,2944,721,2997][11][,,][Times New Roman]] [[721,2944,1391,2997][11][,,][Times New Roman]] ,IDSSOLFDEOH $VVWDWHGLQWKH*UDQ [[1390,2944,2249,2997][11][,,][FEFB3349D]]WHH¶V$SSOLFDWLRQWKH*UDQWHHFHUWLILHVWKDWWKH PDWFKLQJUHTXLUHPHQWZLOOEHPHWE\WKH*UDQWHH [[225,3050,237,3102][11][B,I,][Times New Roman]] 3DFNHW3J '36*UDQW$JUHHPHQWQRQVWDWH 'D *UDQW$JUHHPHQW 3DJHRI [[222,399,392,451][11][B,I,][Times New Roman]]3D\PHQW [[429,399,868,452][11][,,][Times New Roman]]$VVWDWHGLQWKH*UDQWHH [[870,399,881,452][11][,,][FEFB3349D]]¶ [[885,399,1131,452][11][,,][Times New Roman]]V$SSOLFDWLRQ [[1131,399,1143,452][11][,,][Times New Roman]] [[1142,399,1679,452][11][,,][Times New Roman]]DQG*UDQW3URJUDP*XLGDQFH [[1680,399,2281,452][11][,,][Times New Roman]]WKH6WDWHZLOOSURPSWO\SD\WKH *UDQWHHDIWHUWKH*UDQWHHSUHVHQWVDQLQYRLFHIRUWKHVHUYLFHVDFWXDOO\SHUIRUPHGDQGWKH6WDWH V$XWKRUL]HG 5HSUHVHQWDWLYHDFFHSWVWKHLQYRLFHGVHUYLFHVDQGLQDFFRUGDQFHZLWKWKH*UDQW3URJUDP*XLGHOLQHV3D\PHQW ZLOOQRWEHPDGHLIWKH*UDQWHHKDVQRWVDWLVILHGUHSRUWLQJUHTXLUHPHQWV [[225,662,879,714][11][B,I,][Times New Roman]]&HUWLILFDWLRQ5HJDUGLQJ/REE\LQJ [[880,662,903,715][11][,,][Times New Roman]] [[903,662,1198,715][11][,,][Times New Roman]] ,IDSSOLFDEOH [[1198,662,2240,715][11][,,][Times New Roman]]*UDQWHHVUHFHLYLQJIHGHUDOIXQGVRYHUPXVW FRPSOHWHDQGUHWXUQWKH&HUWLILFDWLRQ5HJDUGLQJ/REE\LQJIRUPSURYLGHGE\WKH6WDWHWRWKH*UDQWHH (1&80%5$1&(9(5,),&$7,2167$7($*(1&< [[298,915,1053,955][8][,I,][Times New Roman]],QGLYLGXDOFHUWLILHVWKDWIXQGVKDYHEHHQHQFXPEHUHGDV [[1054,915,1063,955][8][,I,][Times New Roman]] %\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB [[300,957,618,997][8][,I,][Times New Roman]]UHTXLUHGE\0LQQ6WDW [[656,957,665,997][8][,I,][Times New Roman]] [[664,957,931,997][8][,I,][Times New Roman]]$DQG& [[619,958,657,997][8][,I,][Arial]] [[932,958,941,997][8][,,][Times New Roman]] ZLWKGHOHJDWHGDXWKRULW\ 6LJQHGBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB7LWOHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB *UDQW$JUHHPHQW1R$(03*52&+&, !)")"* !" # $% ' ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< &LW\2ZQHUDQG&RQVWUXFWLRQ2EVHUYDWLRQ&RQWUDFWV±3XEOLF,PSURYHPHQWVWR +HDWKHU3HWHUVRQ 6HUYH6WRQHEURRNH7KLUG$GGLWLRQ±- 6WDIIRIIHUVWKHIROORZLQJ&LW\2ZQHUDQG&RQVWUXFWLRQ2EVHUYDWLRQ&RQWUDFWVIRUFRQVLGHUDWLRQE\WKH&RXQFLO IRU-³3XEOLF,PSURYHPHQWVWR6HUYH6WRQHEURRNH7KLUG$GGLWLRQ´ 5HTXHVWLQJD&LW\2ZQHU&RQWUDFW 6WRQHEURRNHRI5RFKHVWHU//& DV2ZQHU 6FKXPDFKHU([FDYDWLQJ,QF DV&RQWUDFWRU DQG*&XEHG ,QF DV'HVLJQ(QJLQHHU DUHUHTXHVWLQJD&LW\2ZQHU&RQWUDFW- 5HTXHVWLQJ&RQVWUXFWLRQ2EVHUYDWLRQ&RQWUDFW &RQVXOWLQJ(QJLQHHU*&XEHG,QF &RQWUDFW)RU3URIHVVLRQDO7HFKQLFDO6HUYLFHV$PRXQW 'D ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨ^ƚŽŶĞďƌŽŽŬĞdŚŝƌĚĨŽƌͲKŽŶƚƌĂĐƚ:ϱϰϯϰ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐ^ƚŽŶĞďƌŽŽŬĞϯƌĚͲKŽŶƚƌĂĐƚ:ϱϰϯϰ 3DFNHW3J 'E &,7<2:1(5&2175$&7 &LW\RI 7+,6$*5((0(17PDGHWKLVBBBBBBBGD\RIBBBBBBBBBBBBBBBEHWZHHQWKH 5RFKHVWHU6WRQHEURRNHRI D0LQQHVRWDPXQLFLSDOFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV&LW\ DQG 5RFKHVWHU//& D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ KHUHLQDIWHUUHIHUUHGWRDV2ZQHU DQG 6FKXPDFKHU([FDYDWLQJ,QF* D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³&RQWUDFWRU´ DQG &XEHG,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³'HVLJQ(QJLQHHU´ DQGWRJHWKHUWKH 2ZQHU&RQWUDFWRUDQG'HVLJQ(QJLQHHUVKDOOKHUHLQDIWHUFROOHFWLYHO\EHUHIHUUHGWRDVWKH3DUWLHVXQGHU WKHJHQHUDOWHUPVDQGFRQGLWLRQVRIWKLVDJUHHPHQW :,71(66(7+7+$7:+(5($6 2ZQHUKDVUHTXHVWHGSHUPLVVLRQWRDWLWVRZQH[SHQVHFRQVWUXFWSXEOLFLQIUDVWUXFWXUHRU SHUIRUPRWKHUSULYDWHZRUNZLWKLQWKHSXEOLFULJKWRIZD\RUSXEOLFHDVHPHQWVO\LQJZLWKLQRU 6WRQHEURRNH7KLUG$GGLWLRQ DEXWWLQJSURSHUW\EHLQJSODWWHGDVDFFRUGLQJWRWKHDSSURYHG ³ 3XEOLF SODQVDQGVSHFLILFDWLRQVWKHUHRISUHSDUHGE\'HVLJQ(QJLQHHUJHQHUDOO\UHIHUUHGWRDV ,PSURYHPHQWVWR6HUYH6WRQHEURRNH7KLUG$GGLWLRQ±-´ WKHFRYHUVKHHWGHSLFWHG IRUUHIHUHQFHDVDWWDFKHG([KLELWµ$¶DQGKHUHLQDIWHUUHIHUUHGWRDVWKH3URMHFW &LW\LVZLOOLQJWRJUDQW2ZQHUSHUPLVVLRQWRSHUIRUPWKHSXEOLFLPSURYHPHQWVZRUNIRUWKH 3URMHFWXWLOL]LQJ&RQWUDFWRUDWLWVRZQFRVWDQGH[SHQVH XQOHVVRWKHUZLVHVSHFLILFDOO\QRWHG KHUHLQ DQGVXEMHFWWRWKHWHUPVDQGFRQGLWLRQVKHUHLQLQFOXGLQJIXOOFRPSOLDQFHZLWKWKH DSSURYHG&LYLO&RQVWUXFWLRQ3ODQVIRUWKH3URMHFW KHUHLQDIWHU3URMHFW3ODQV DQGDGKHUHQFHWR WKH&LW\¶V6WDQGDUG'HVLJQ6SHFLILFDWLRQV 12:7+(5()25(LWLVKHUHE\PXWXDOO\DJUHHGEHWZHHQ&LW\DQG3DUWLHVDVIROORZV ,2:1(563(&,),&2%/,*$7,216 3HWHU'XQODS D DV2ZQHU¶VUHSUHVHQWDWLYHVKDOOEHWKH3URMHFW0DQDJHUIRUWKH3URMHFW 7KH3URMHFW0DQDJHULVUHVSRQVLEOHIRUDOOFRRUGLQDWLRQRIWKHZRUNHOHPHQWVLQFOXGLQJ 3URMHFWFORVHRXW &KRVHQ9DOOH\ E 2ZQHUKDVE\VHSDUDWHGRFXPHQWUHWDLQHGWKHSURIHVVLRQDOVHUYLFHVRI 7HVWLQJ,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHU³*HRWHFKQLFDO3URIHVVLRQDO´ WR SUHSDUHD*HRWHFKQLFDO5HSRUW KHUHLQDIWHU³5HSRUW´ IRUWKH3URMHFW2ZQHULVREOLJDWHG WRPDNHWKHUHVXOWVRIVDLG5HSRUWDYDLODEOHWRWKH&LW\DQGLWVGHVLJQHHVIRUWKHSXUSRVHRI WKHSUHSDUDWLRQRID3DYHPHQW'HVLJQIRUWKH3URMHFW 2FWREHU F 2ZQHUVKDOORYHUVHHWKH&RQWUDFWRU¶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³2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU´ KDVEHHQUHWDLQHGE\&LW\WKURXJKDVHSDUDWHDUUDQJHPHQWWR SHUIRUPFRQVWUXFWLRQREVHUYDWLRQDQGRYHUVLJKWIRUWKH3URMHFW&RQFXUUHQWZLWK2ZQHU¶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¶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¶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¶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¶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¶V6WDQGDUGVIRU6WUHHWDQG 8WLOLW\&RQVWUXFWLRQLQHIIHFWDWWKHWLPHRIFRQWUDFWH[HFXWLRQDOORIZKLFKDUHLQFRUSRUDWHG KHUHLQE\UHIHUHQFH:RUNVKDOOQRWFRPPHQFHRQWKH3URMHFWXQWLOWKHFLYLOFRQVWUXFWLRQ SODQVDQG*UDGLQJ3ODQVKDYHEHHQDSSURYHGDQGWKHDSSURYHGSODQVDQGVSHFLILFDWLRQV IRUWKH3URMHFWDUHRQILOHZLWKWKH&LW\(QJLQHHU$QRQVLWHPHHWLQJEHWZHHQWKH2ZQHU &RQWUDFWRU'HVLJQ(QJLQHHU2EVHUYDWLRQ 2YHUVLJKW(QJLQHHUDQGWKH&LW\¶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¶V$FFHSWDQFHRIWKHZRUNVKDOOEHPHPRULDOL]HGE\WKH 3DFNHW3J 'E &LW\(QJLQHHU¶VH[HFXWLRQRIDVHSDUDWH&LW\$FFHSWDQFH DQH[DPSOH$FFHSWDQFHLV SURYLGHGIRUUHIHUHQFHRQWKHDWWDFKHG([KLELW &LW\(QJLQHHUPD\DFFHSWWKH2ZQHU¶V 'HVLJQ(QJLQHHU¶VRU&RQWUDFWRU¶VZRUNLQGHSHQGHQWRIWKHFRPSOHWLRQRIWKHUHPDLQLQJ SDUWLHV¶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¶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¶VIHHV 7KH2ZQHUDQG&RQWUDFWRUDJUHHWRGHIHQGLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\DQGLWV RIILFLDOVRIILFHUVDJHQWVDQGHPSOR\HHVIURPDOOFODLPVEURXJKWE\WKHHPSOR\HHVRU DJHQWVRIWKH2ZQHUDQG&RQWUDFWRURULWVVXEFRQWUDFWRUVDULVLQJRXWRIRUDVDUHVXOWRI DQ\QHJOLJHQWRURWKHUZLVHWRUWLRXVDFWRUIDLOXUHWRDFWLQFRQQHFWLRQZLWKWKHSHUIRUPDQFH RIWKHZRUNWREHSHUIRUPHGSXUVXDQWWRWKLVFRQWUDFWE\WKH2ZQHUDQG&RQWUDFWRULWV HPSOR\HHVDJHQWVDQGVXEFRQWUDFWRUV7KH2ZQHUDQG&RQWUDFWRUDJUHHWRGHIHQGDQG SD\DOOFRVWVLQGHIHQGLQJW KHVHFODLPVLQFOXGLQJDWWRUQH\¶VIHHV 3DFNHW3J 'E 7KH(QJLQHHUDJUHHVWRLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWVRIILFLDOVRIILFHUVDJHQWV DQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVUHVXOWLQJIURPRUDULVLQJRXWRIWKHQHJOLJHQW DFWLYLWLHVRI7KH(QJLQHHURULWVVXEFRQWUDFWRUVDJHQWVRUHPSOR\HHVXQGHUWKLV DJUHHPHQW7KH(QJLQHHUDJUHHVWRUHLPEXUVHDOOFRVWVRIWKHVHFODLPVLQFOXGLQJ DWWRUQH\¶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¶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¶V$FFHSWDQFH 3DFNHW3J 'F 3DFNHW3J 'F WƌŽũĞĐƚEĂŵĞ͗^ƚŽŶĞďƌŽŽŬĞdŚŝƌĚĚĚŝƚŝŽŶ ŝƚLJWƌŽũĞĐƚEŽ͘DϮ Ͳ Ϭϱ Ͳ ϵ Ͳ ϭϲ;:ϱϰϯϰͿ ĞƐĐƌŝƉƚŝŽŶ͗tĂƚĞƌŵĂŝŶĞdžƚĞŶƐŝŽŶĂŶĚDŝĚďůŽĐŬŽŶŶĞĐƚŝŽŶ ŽŶƚƌĂĐƚŽƌtŽƌŬĚĂLJŝƐƐƚ͘ĂƚϴŚŽƵƌƐƉĞƌĚĂLJϴ ƐƚŝŵĂƚĞĚ ŽŶƚƌĂĐƚŽƌƐƚŝŵĂƚĞĚ >ĞǀĞůŽĨƉƉƌŽdžйŽĨtŽƌŬŝŶŐĂLJƐKďƐĞƌǀĂƚŝŽŶ ĐƚŝǀŝƚLJ/ŶƐƉĞĐƚŝŽŶdŝŵĞĨŽƌWƵďůŝĐ/ŵƉ͘,ŽƵƌƐ ^ŝƚĞůĞĂƌŝŶŐĂŶĚ'ƌƵďďŝŶŐͬZĞŵŽǀĂůƐ WĂƌƚƚŝŵĞϮϱйϭ͘ϬϮ͘Ϭ 'ĞŶĞƌĂů^ŝƚĞ'ƌĂĚŝŶŐĂŶĚdžĐĂǀĂƚŝŽŶ WĂƌƚƚŝŵĞϮϱйϱ͘ϬϭϬ͘Ϭ ZŽĐŬdƌĞŶĐŚůĂƐƚŝŶŐ WĂƌƚƚŝŵĞϮϱйϬ͘ϬϬ͘Ϭ hŶĚĞƌŐƌŽƵŶĚhƚŝůŝƚLJtŽƌŬ &ƵůůƚŝŵĞϭϬϬйϮ͘Ϭϭϲ͘Ϭ dƌĞŶĐŚŽŵƉĂĐƚŝŽŶĨƌŽŵϬ Ͳ ϮΖŽǀĞƌƉŝƉĞ &ƵůůƚŝŵĞϭϬϬйϬ͘ϬϮ͘Ϭ dƌĞŶĐŚŽŵƉĂĐƚŝŽŶĨƌŽŵϮΖŽǀĞƌWŝƉĞƚŽ^ƵƌĨĂĐĞ WĂƌƚƚŝŵĞϱϬйϬ͘ϬϮ͘Ϭ ^ƚƌĞĞƚ^ƵďŐƌĂĚĞWƌĞƉĂƌĂƚŝŽŶͬŽŵƉĂĐƚŝŽŶ &ƵůůƚŝŵĞϭϬϬйϬ͘ϬϬ͘Ϭ ŐŐƌĞŐĂƚĞĂƐĞWůĂĐĞŵĞŶƚ WĂƌƚƚŝŵĞϱϬйϬ͘ϱϮ͘Ϭ ŐŐƌĞŐĂƚĞĂƐĞŽŵƉĂĐƚŝŽŶͬWƌŽŽĨZŽůůdĞƐƚ &ƵůůƚŝŵĞϭϬϬйϬ͘ϬϬ͘Ϭ ƵƌďΘ'ƵƚƚĞƌƉƌĞƉĂƌĂƚŝŽŶ WĂƌƚƚŝŵĞϱϬйϬ͘ϬϬ͘Ϭ ƵƌďΘ'ƵƚƚĞƌ^ƚƌŝŶŐ>ŝŶĞŚĞĐŬͬsĞƌŝĨLJ &ƵůůƚŝŵĞϭϬϬйϬ͘ϬϬ͘Ϭ ƵƌďΘ'ƵƚƚĞƌƉŽƵƌŝŶŐ WĂƌƚƚŝŵĞϱϬйϬ͘ϬϬ͘Ϭ ŝƚƵŵŝŶŽƵƐEŽŶ Ͳ tĞĂƌ WĂƌƚƚŝŵĞϱϬйϬ͘ϱϮ͘Ϭ ŝƚƵŵŝŶŽƵƐEŽŶ Ͳ tĞĂƌZĞǀŝĞǁͲWƌŝŽƌƚŽǁĞĂƌ &ƵůůƚŝŵĞϭϬϬйϬ͘ϱϰ͘Ϭ ŝƚƵŵŝŶŽƵƐtĞĂƌWůĂĐĞŵĞŶƚ &ƵůůƚŝŵĞϭϬϬйϬ͘ϱϰ͘Ϭ ŽŶĐƌĞƚĞ^ƚƌĞĞƚWůĂĐĞŵĞŶƚ &ƵůůƚŝŵĞϭϬϬйϬ͘ϬϬ͘Ϭ KƚŚĞƌĐƚŝǀŝƚŝĞƐ ƐZĞƋƵŝƌĞĚϭϬϬйϬ͘ϬϬ͘Ϭ ^ƵďƚŽƚĂůĨŽƌ&ŝĞůĚKďƐĞƌǀĂƚŝŽŶ͗ ϭϬ͘Ϭϰϰ͘Ϭ KƚŚĞƌĐƚŝǀŝƚŝĞƐΎĐƚŝǀŝƚŝĞƐĂƌĞŝŶ'ͲƵďĞĚĐŽŶƚƌĂĐƚǁŝƚŚŽǁŶĞƌ WƌĞŽŶƐƚƌƵĐƚŝŽŶDĞĞƚŝŶŐǁŝƚŚŝƚLJ^ƚĂĨĨͲ>ĞĂĚKďƐĞƌǀĞƌ Ϯ͘Ϭ tĞĞŬůLJŽŶƐƚƌƵĐƚŝŽŶWƌŽŐƌĞƐƐDĞĞƚŝŶŐƐͲϮŚŽƵƌƐƉĞƌǁĞĞŬͲ>ĞĂĚŶŐŝŶĞĞƌ ΎϬ͘Ϭ ŶŐŝŶĞĞƌŝŶŐ&ŝŶĂůƐͲ>ĞĂĚKďƐĞƌǀĞƌ ΎϬ͘Ϭ ŶŐŝŶĞĞƌŝŶŐ&ŝŶĂůƐͲŶŐŝŶĞĞƌŽĨZĞĐŽƌĚ ΎϬ͘Ϭ ŶŐŝŶĞĞƌŝŶŐƐ ͲƵŝůƚƌĂǁŝŶŐƐͲŶŐŝŶĞĞƌŝŶŐŝĚĞ ΎϬ͘Ϭ ŶŐŝŶĞĞƌŝŶŐƐ ͲƵŝůƚƌĂǁŝŶŐƐͲŶŐŝŶĞĞƌKĨZĞĐŽƌĚ ΎϬ͘Ϭ ŽŶƐƚƌƵĐƚŝŽŶͬĞƐŝŐŶŽŽƌĚ͘ͲŶŐŝŶĞĞƌŽĨZĞĐŽƌĚ ΎϬ͘Ϭ WƌŽũĞĐƚKďƐĞƌǀĂƚŝŽŶDĞŶƚŽƌ ϴ͘ϴ dŽƚĂů,ŽƵƌƐ͗ ϱϰ͘ϴ &ĞĞƐƚŝŵĂƚĞ WƌŽũĞĐƚZŽůĞͬ^ĞƌǀŝĐĞZĂƚĞ,ŽƵƌƐdŽƚĂů >ĞĂĚWƌŽũĞĐƚKďƐĞƌǀĞƌϲϱ͘ϬϬΨϰϲ͘ϬϮ͕ϵϵϬ͘ϬϬΨ KďƐĞƌǀĂƚŝŽŶDĞŶƚŽƌ;DŝŶ͘ϮŽйŽĨ>ĞĂĚKďƐĞƌǀĞƌͿϵϬ͘ϬϬΨϴ͘ϴϳϵϮ͘ϬϬΨ ŶŐŝŶĞĞƌŝŶŐŝĚĞϵϬ͘ϬϬΨϬ͘ϬΨͲ ŶŐŝŶĞĞƌŽĨZĞĐŽƌĚϭϱϬ͘ϬϬΨϬ͘ϬΨͲ dŽƚĂůƐƚŝŵĂƚĞĚ&ĞĞ͗ ϱϰ͘ϴϯ͕ϳϴϮ͘ϬϬΨ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< /DQG$FTXLVLWLRQ±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¶SULRUZULWWHQQRWLFHWR8QLYHUVLW\DQG LLL UHQWIRUWKH8QLYHUVLW\¶V([FOXVLYH6SDFHVKDOOEHEDVHGRQWKH&LW\¶V 'D 3DUDJUDSKRIWKH$JUHHPHQWLVKHUHE\DPHQGHGDQGUHVWDWHGLQLWVHQWLUHW\DVIROORZV 7KH8QLYH UVLW\PD\WHUPLQDWHWKLVDJUHHPHQWXSRQGD\V¶ZULWWHQQRWLFHWRWKH&LW\IRU DQ\UHDVRQ7KH&LW\PD\WHUPLQDWHWKLVDJUHHPHQWXSRQGD\V¶ZULWWHQQRWLFHWRWKH 8QLYHUVLW\IRUDQ\UHDVRQ ([KLELW%WRWKH$JUHHPHQWLVKHUHE\UHSODFHGLQLWVHQWLUHW\E\([KLELW%DWWDFKHGKHUHWR 'D (;+,%,7% $SSURYHG3DUNHUV $SSURYHG3DUNHUVVKDOOPHDQ )DFXOW\± 8QLYHUVLW\IDFXOW\ZKLFKDUHHPSOR\HGDWWKH5RFKHVWHU&DPSXV 6WDII± 8QLYHUVLW\VWDIIHPSOR\HGDWWKH5RFKHVWHU&DPSXV 6WXGHQWV± &RQWUDFWVIRUVWXGHQWVDUHRIIHUHGRQDVHPHVWHUEDVLVRQO\DQGDUHVXEMHFWWRWKH QHVWHG URRIWRS VHFWLRQUHTXLUHPHQWDQGWKH)OH[3DUNLQJ3URJUDPDVRXWOLQHGLQ([KLELW& (OLJLEOHVWXGHQWVPXVWEHWDNLQJDWOHDVWFUHGLWVRIGD\WLPHFRXUVHZRUN6WXGHQWVZLOOEH UHTXLUHGWRVKRZWKH&LW\RULWVPDQDJHPHQWDSULQWHG8QLYHUVLW\FODVVVFKHGXOHZKLFKLGHQWLILHV WKHFRXUVHVWKH\DUHWDNLQJWKHFUHGLWVDQGWKHGD\VWLPHVWKHFRXUVHVPHHW'D\WLPHLQWKLV FRQWH[WPHDQV0RQGD\7XHVGD\:HGQHVGD\7KXUVGD\DQGRU)ULGD\EHWZHHQWKHKRXUVRI DPDQGSPRUWKHWLPHDWZKLFKHYHQLQJSDUNLQJEHFRPHVIUHHWRWKHJHQHUDOSXEOLF 6WXGHQWVZLOOEHUHTXLUHGWRVKRZWKHLUVHPHVWHUVFKHGXOHSULRUWRHDFKVHPHVWHUWRLQVXUH FRQWLQXLQJHOLJLELOLW\IRUSDUNLQJLQWKH&LW\3DUNLQJ)DFLOLWLHV5RFKHVWHU&DPSXVVWDIIZLOO ZRUNZLWKWKH&LW\¶VSDUNLQJPDQDJHPHQWWRFRRUGLQDWHDVFKHGXOHDQGWRLQIRUPVWXGHQWVDERXW WKHHOLJLELOLW\FULWHULDDQGVHPHVWHUSURFHGXUHVWRVWD\HOLJLEOHIRUSDUNLQJ 6WXGHQWVZKRDUHWDNLQJHYHQLQJRUZHHNHQGRQO\FODVVHVZLOOQRWEHHOLJLEOHIRUPRQWKO\ SDUNLQJ 3DFNHW3J 'D (;+,%,7& )/(;3$5.,1*352*5$0 7KH&LYLF&HQWHU5DPSFDQDFFRPPRGDWHPRUHPRQWKO\SDUNLQJRQTXLHWGD\VEXWQRW RQLWVELJHYHQWGD\V3DUNLQJFXVWRPHUVXQGHUWKH)OH[3DUNLQJ3URJUDPUHFHLYHDQ DFFHVVFDUGIRUPRQWKO\SDUNLQJLQWKH&LW\RI5RFKHVWHU¶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dŚĞĞŶƚĞƌĨŽƌZĞŐƵůĂƚŽƌLJZĞĂƐŽŶĂďůĞŶĞƐƐ;ZZͿŝƐĂŵƵůƚŝͲƐĞĐƚŽƌĐŽĂůŝƚŝŽŶŽĨŵƵŶŝĐŝƉĂůĂŶĚŝŶĚƵƐƚƌŝĂůĞŶƚŝƚŝĞƐĨƌŽŵ ĂĐƌŽƐƐƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͘dŚĞZZŝƐĚĞĚŝĐĂƚĞĚƚŽĞŶƐƵƌŝŶŐƚŚĂƚǁĂƚĞƌƋƵĂůŝƚLJƌĞŐƵůĂƚŝŽŶƐĂĨĨĞĐƚŝŶŐĐŝƚŝĞƐĂƌĞďĂƐĞĚ ŽŶƐŽƵŶĚƐĐŝĞŶƚŝĨŝĐŝŶĨŽƌŵĂƚŝŽŶ͕ĂůůŽǁĨŽƌĨůĞdžŝďůĞŝŵƉůĞŵĞŶƚĂƚŝŽŶ͕ŽŶůLJƌĞƋƵŝƌĞĂƚƚĂŝŶĂďůĞ͕ĐŽƐƚͲĞĨĨĞĐƚŝǀĞ ĐŽŵƉůŝĂŶĐĞŽƉƚŝŽŶƐĂŶĚƚŚĂƚƌƵůĞĐŚĂŶŐĞƐĂƌĞŽŶůLJŝŵƉůĞŵĞŶƚĞĚĂĨƚĞƌĨƵůůĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨƉƵďůŝĐĐŽŵŵĞŶƚƐ ƌĞŐĂƌĚŝŶŐƚŚĞŶĞĞĚĨŽƌĂŶĚĞĨĨŝĐĂĐLJŽĨƐƵĐŚƌĞƋƵŝƌĞŵĞŶƚƐ͘ KŶ:ƵůLJϭϮ͕ϮϬϭϲƚŚĞZZ͕ĂĐƚŝŶŐŝŶĐŽŽƌĚŝŶĂƚŝŽŶǁŝƚŚƚŚĞŽĂůŝƚŝŽŶŽĨ'ƌĞĂƚĞƌDŝŶŶĞƐŽƚĂŝƚŝĞƐ;'DͿĂŶĚƚŚĞ DŝŶŶĞƐŽƚĂŶǀŝƌŽŶŵĞŶƚĂů^ĐŝĞŶĐĞĂŶĚĐŽŶŽŵŝĐZĞǀŝĞǁŽĂƌĚ;D^ZͿ͕ĨŝůĞĚĂĨĞĚĞƌĂůůĂǁƐƵŝƚĂŐĂŝŶƐƚƚŚĞh͘^͘ ŶǀŝƌŽŶŵĞŶƚĂůWƌŽƚĞĐƚŝŽŶŐĞŶĐLJ;WͿ͘dŚĞůĂǁƐƵŝƚƐĞĞŬƐƚŽĐŽŵƉĞůƚŚĞWƚŽǁŝƚŚĚƌĂǁŝƚƐĂƉƉƌŽǀĂůŽĨƚŚĞ DŝŶŶĞƐŽƚĂWŽůůƵƚŝŽŶŽŶƚƌŽůŐĞŶĐLJ͛ƐŶƵƚƌŝĞŶƚƐƚĂŶĚĂƌĚƐĨŽƌƌŝǀĞƌƐĂŶĚƐƚƌĞĂŵƐ;ƌŝǀĞƌŝŶĞƐƚĂŶĚĂƌĚƐͿ͘dŚĞůĂǁƐƵŝƚ ĐůĂŝŵƐƚŚĂƚƚŚĞƐƚĂŶĚĂƌĚƐĂƌĞƐĐŝĞŶƚŝĨŝĐĂůůLJĨůĂǁĞĚ͘ dŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌŝƐĂĨĨĞĐƚĞĚďLJƚŚĞŶĞǁƌŝǀĞƌŝŶĞƐƚĂŶĚĂƌĚƐ͘dŽƐƵƉƉŽƌƚƚŚĞůĂǁƐƵŝƚ͕ƚŚĞ'DĂŶĚD^Z ƌĞƋƵĞƐƚƐƚŚĂƚĐŝƚŝĞƐĂŶĚƐĂŶŝƚĂƌLJĚŝƐƚƌŝĐƚƐĂĨĨĞĐƚĞĚďLJƚŚĞƌŝǀĞƌŝŶĞƐƚĂŶĚĂƌĚƐďƌŝŶŐƚŚĞĨŽůůŽǁŝŶŐŵŽƚŝŽŶƐďĞĨŽƌĞƚŚĞŝƌ ĐŝƚLJĐŽƵŶĐŝůƐƚŽƚĂŬĞĂĐƚŝŽŶĂƚƚŚŝƐƚŝŵĞ͘ WƵďůŝĐtŽƌŬƐĂŶĚŝƚLJĚŵŝŶŝƐƚƌĂƚŝŽŶƐƚĂĨĨƌĞĐŽŵŵĞŶĚƚŚĂƚƚŚĞŽƵŶĐŝů͗ ϭ͘:ŽŝŶƚŚĞĞŶƚĞƌĨŽƌZĞŐƵůĂƚŽƌLJZĞĂƐŽŶĂďůĞŶĞƐƐĂŶĚĚŝƌĞĐƚƐƚĂĨĨƚŽĨŝůůŽƵƚƚŚĞƌĞƋƵŝƌĞĚŽŶůŝŶĞŵĞŵďĞƌƐŚŝƉĨŽƌŵ͖ Ϯ͘WĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞĨĞĚĞƌĂůůĂǁƐƵŝƚĂŐĂŝŶƐƚh^WĨŝůĞĚďLJZZŝĨƐŽƌĞƋƵĞƐƚĞĚďLJƚŚĞ'DĂŶĚD^ZďLJ ƉƌĞƉĂƌŝŶŐĂŶĚƐŝŐŶŝŶŐĂŶĂĨĨŝĚĂǀŝƚŽĨŝŵƉĂĐƚ͕ĂŶĚĚŝƌĞĐƚŝŶŐƐƚĂĨĨƚŽĂƐƐŝƐƚůĞŐĂůĐŽƵŶƐĞůĨƌŽŵZZĂŶĚ&ůĂŚĞƌƚLJΘ ,ŽŽĚ͕W͕͘͘ŝŶĚĞǀĞůŽƉŝŶŐƐĂŝĚĂĨĨŝĚĂǀŝƚŽĨŝŵƉĂĐƚ͘ LJũŽŝŶŝŶŐZZŽƌƉĂƌƚŝĐŝƉĂƚŝŶŐŝŶƚŚĞůĂǁƐƵŝƚƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌǁŝůůŶŽƚďĞĂŶĂŵĞĚƉĂƌƚLJƚŽƚŚĞůĂǁƐƵŝƚŶŽƌǁŝůů ƚŚĞŝƚLJŝŶĐƵƌĂŶLJůĞŐĂůĞdžƉĞŶƐĞĂƐƚŚĞ'DĂŶĚD^ZĂƌĞĨƵŶĚŝŶŐƚŚŝƐĞĨĨŽƌƚ͘dŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌŝƐĂůƌĞĂĚLJĂ ŵĞŵďĞƌŽĨƚŚĞ'DĂŶĚD^Z͘dŚĞŝƚLJ͛ƐǁĂƐƚĞǁĂƚĞƌƚƌĞĂƚŵĞŶƚƉůĂŶƚĚŝƐĐŚĂƌŐĞƐƚŽĂƌŝǀĞƌŝŶDŝ ŶŶĞƐŽƚĂĂŶĚ ǁŝůůďĞŝŵƉĂĐƚĞĚďLJƚŚĞƌŝǀĞƌŝŶĞƐƚĂŶĚĂƌĚƐ͘ &281&,/$&7,215(48(67(' -RLQWKH&HQWHUIRU5HJXODWRU\5HDVRQDEOHQHVVDQGGLUHFWVWDIIWRILOORXWWKHUHTXLUHGRQOLQHPHPEHUVKLSIRUP 3DUWLFLSDWHLQWKHIHGHUDOODZVXLWDJDLQVW86(3$ILOHGE\&55LIVRUHTXHVWHGE\WKH&*0&DQG0(6(5%E\ SUHSDULQJDQGVLJQLQJDQDIILGDYLWRILPSDFWDQGGLUHFWLQJVWDIIWRDVVLVWOHJDOFRXQVHOIURP&55DQG)ODKHUW\ +RRG3$LQGHYHORSLQJVDLGDIILGDYLWRILPSDFW 3DFNHW3J 'D ,PPHGLDWH$FWLRQ5HTXHVWHG ²-RLQ&55DQG6XSSRUW,WV/DZVXLW$JDLQVW 86(3$ 2Q-XO\WKH&HQWHUIRU5HJXODWRU\5HDVRQDEOHQHVV &55 DFWLQJLQFRRUGLQDWLRQZLWK WKH&*0&DQG0(6(5%ILOHGWKHDQWLFLSDWHGIHGHUDOODZVXLWDJDLQVWWKH86(QYLURQPHQWDO 3URWHFWLRQ$JHQF\ (3$ WRFRPSHOWKH(3$WRZLWKGUDZLWVDSSURYDORIWKH0LQQHVRWD 3R OOXWLRQ&RQWURO$JHQF\¶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¶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¶VDSSURYDORIWKH0LQQHVRWD3ROOXWLRQ &RQWURO$JHQF\¶V ³03&$´ VXEPLVVLRQRIQHZDQGUHYLVHGZDWHUTXDOLW\VWDQGDUGV ³:46´ 3DFNHW3J &DVHFY'RFXPHQW)LOHGRISODQWJURZWKZLOOYLRODWHWKLV'2IOX[³LPSDLUPHQW´FULWHULD 3DFNHW3J &DVHFY'RFXPHQW)LOHGIOX[RFFXUULQJLQDZDWHUERG\PD\EHDIIHFWHGE\DKRVWRI QRQQXWULHQWIDFWRUV7KHUHIRUHLWLVQRWSRVVLEOHWRFRQFOXGHWKDWWKHPHDVXUHPHQWVREWDLQHGIRU WKHVHSDUDPHWHUVDUHGXHWRQXWULHQWVFDXVLQJH[FHVVLYHDOJDOJURZWKZLWKRXWDGGLWLRQDO LQIRUPDWLRQ(3$¶VDSSURYDORIDQGVXEVHTXHQWUHIXVDOWRZLWKGUDZ03&$¶V:46VXEPLVVLRQ LVDUELWUDU\DQGFDSULFLRXVDQGQRWLQDFFRUGDQFHZLWKWKHODZEHFDXVH03&$GLGQRWVXEPLW 3DFNHW3J &DVHFY'RFXPHQW)LOHG LQFOXGLQJQXPHURXVPHPEHUVLQ0LQQHVRWD &55LVGHGLFDWHGWRHQVXULQJWKDWUHJXODWRU\ 3DFNHW3J &DVHFY'RFXPHQW)LOHGOLQMXU\WR&55¶VPHPEHUV 3DFNHW3J &DVHFY'RFXPHQW)LOHGKLVODZVXLWLVZHOOZLWKLQWKDWWLPHIUDPH &RQYHUVHO\LWDOVRSRVVLEOHWKDWWKHQXPHULFFULWHULDVHOHFWHGIRU'2IOX[UDQJHRU%2'ZLOO QRWEHH[FHHGHGLQVLWXDWLRQVZKHUHWKHUHLVDUHDOQXWULHQWLPSDLUPHQW 3DFNHW3J &DVHFY'RFXPHQW)LOHGLYHFULWHULRQ$FFRUGLQJO\QDUUDWLYHFULWHULD LQWHUSUHWDWLRQDSSURDFKHVPXVWXQGHUJRWKHVDPHSXEOLFUHYLHZDQGDGRSWLRQSURFHVVDVQXPHULF FULWHULD&)5DQG &DVHFY'RFXPHQW)LOHGHGXVH6XFK FULWHULD[[454,2370,1321,2427][12][,I,][Times New Roman]]PXVWEHEDVHGRQVRXQGVFLHQWLILFUDWLRQDOH [[1321,2370,1333,2427][12][,,][Times New Roman]] [[1333,2370,2173,2427][12][,,][Times New Roman]]DQGPXVWFRQWDLQVXIILFLHQWSDUDPHWHUVRU FRQVWLWXHQWVWRSURWHFWWKHGHVLJQDWHGXVH´ HPSKDVLVDGGHG :DWHUTXDOLW\FULWHULDDUHWREHEDVHGRQGHILQHGFDXVHDQGHIIHFWVUHODWLRQVKLSVEHWZHHQ WKHSROOXWDQWFRQFHQWUDWLRQSUHVHQWDQGWKHIRUPVRIDTXDWLFOLIHWREHSURWHFWHG 3DFNHW3J &DVHFY'RFXPHQW)LOHG89,2499,1839,2556][12][,,][Times New Roman]] [[1840,2499,1852,2556][12][,,][Times New Roman]] [[1852,2499,2092,2556][12][,,][Times New Roman]] 1')OD [[2092,2499,2195,2556][12][,,][Times New Roman]] ³,QRUGHUWRDSSURYHDQHZRUUHYLVHGZDWHUTXDOLW\VWDQGDUGWKH(3$PXVWILQGWKDWLWLV FRQVLVWHQWZLWKIHGHUDOUHJXODWLRQVDQGWKH&:$LQPDNLQJVXFKDGHWHUPLQDWLRQWKH(3$PXVW FRQVLGHUZKHWKHUWKHQHZRUUHYLVHGVWDQGDUGDGHTXDWHO\SURWHFWVWKHGHVLJQDWHGXVHVRIWKH VWDWH VZDWHUERGLHVDQGLVEDVHGRQDVRXQGVFLHQWLILFUDWLRQDOH´ [[1617,2729,2220,2786][12][,I,][Times New Roman]]0LVVLVVLSSL&RP2Q1DWXUDO [[298,2786,692,2843][12][,I,][Times New Roman]]5HVRXUFHVY&RVWOH [[693,2786,2120,2843][12][,,][Times New Roman]])G WK&LU ³,WZDVQRWXQUHDVRQDEOHIRUWKH(3$ $GPLQLVWUDWRUWR«UHTXLUHVWDWHVWRMXVWLI\VWDQGDUGVQRWLQFRQIRUPDQFHZLWKWKH>(3$ 86& D @FULWHULDSROLF\´ 3DFNHW3J &DVHFY'RFXPHQW)LOHGQGE 3DFNHW3J &DVHFY'RFXPHQW)LOHGWV DSSURYDORI03&$¶VHXWURSKLFDWLRQFULWHULDIRUULYHUVDQGVWUHDPV[[1647,2549,1728,2606][12][,I,][Times New Roman]]6HH [[1728,2549,1808,2606][12][,,][Times New Roman]]([ [[1809,2549,1834,2606][12 ][,,][Times New Roman]] [[1834,2549,2001,2606][12][,,][Times New Roman]](3$¶V [[2002,2549,2200,2606][12][,,][Times New Roman]]'HQLDORI &55¶V5HFRQVLGHUDWLRQ5HTXHVW 3DFNHW3J &DVHFY'RFXPHQW)LOHGEHDVVRFLDWHGZLWKD%2' UHDGLQJZLWKRXWIXUWKHUVLWHVSHFLILFDQDO\VHV[[1224,2471,1305,2528][12][,I,][Times New Roman]]6HH [[1307,2471,1387,2528][12][,,][Times New Roman]]([ [[1388,2471,1413,2528][12][,,][Times New Roman]] [[1413,2471,2163,2528][12][,,][Times New Roman]]([FHUSWVRI-DQXDU\03&$ +HDULQJ7HVWLPRQ\DW 1RSXEOLVKHG(3$QXWULHQWFULWHULDGRFXPHQWVWDWHVWKDWWKH%2'WHVWLVDYDOLGLQGLFDWRU RIQXWULHQWLPSDLUPHQW 3DFNHW3J &DVHFY'RFXPHQW)LOHGJXLGDQFHGRFXPHQWVGHDOLQJZLWKWKHGHYHORSPHQWRIQXWULHQWFULWHULD '2IOX[LVQRWOLVWHGLQDQ\6HFWLRQ D FULWHULDGRFXPHQWDVDQDGYHUVHLPSDFWWKDW PXVWEHUHJXODWHGWRSURWHFWGHVLJQDWHGXVHVRUDTXDWLFOLIH '2IOX[LVDIIHFWHGE\RWKHUQRQQXWULHQWIDFWRUV [[1462,2248,1523,2305][12][,I,][Times New Roman]]HJ [[1522,2248,2252,2305][12][,,][Times New Roman]]WHPSHUDWXUHQDWXUDOSODQWJURZWK VWUHDPGHSWKH[LVWHQFHRIZHWODQGVDQGYHORFLW\ DQGRQHFDQQRWDVVHVVWKHHFRORJLFDO VLJQLILFDQFHRIWKHPHDVXUHG'2IOX[ZLWKRXWFRQGXFWLQJIXUWKHUGHWDLOHGDVVHVVPHQWV [[330,2729,411,2786][12][,I,][Times New Roman]]6HH [[411,2729,491,2786][12][,,][Times New Roman]]([ [[492,2729,517,2786][12][,,][Times New Roman]] &DVHFY'RFXPHQW)LOHG &DVHFY'RFXPHQW)LOHG)RUH[DPSOHQRGDWDVKRZWKDWZDUPZDWHUILVKHULHVLQ WKH1RUWKHFRUHJLRQDUHPRUHVHQVLWLYHWR'2IOX[RU%2'WKDQWKRVHIRXQGLQ6RXWKHFRUHJLRQ [[298,2363,373,2420][12][B,I,][Times New Roman]]1R [[374,2363,388,2420][12][B,I,][Times New Roman]]L [[388,2363,625,2420][12][B,I,][Times New Roman]]PSDLUPHQW [[626,2363,822,2420][12][B,I,][Times New Roman]]WKUHVKROG [[820,2363,832,2420][12][B,I,][Times New Roman]] [[832,2363,860,2420][12][B,I,][Times New Roman]]G [[857,2363,1128,2420][12][B,I,][Times New Roman]]HPRQVWUDWLRQ [[1130,2363,1149,2420][12][B,I,][Times New Roman]]V [[1150,2363,1162,2420][12][B,I,][Times New Roman]] [[1162,2363,1273,2420][12][B,I,][Times New Roman]]PDGH [[1273,2363,1285,2420][12][B,I,][Times New Roman]] &DVHFY'RFXPHQW)LOHGUHVSRQVH´UHJUHVVLRQDQDO\VLV 7RHQVXUHVXFKVWUHVVRUUHVSRQVHDQDO\VHVDUHVFLHQWLILFDOO\GHIHQVLEOH(3$¶VJXLGDQFH UHTXLUHVWKRVHGHYHORSLQJQXWULHQWFULWHULDWRHYDOXDWHDQGDGMXVWIRUWKHSUHVHQFHRIFRQIRXQGLQJ IDFWRUV[[461,2708,542,2765][12][,I,][Times New Roman]]6HH [[543,2708,838,2765][12][,I,][Times New Roman]]8VLQJ6WUHVVRU [[839,2708,855,2765][12][,I,][Times New Roman]] [[854,2708,1818,2765][12][, I,][Times New Roman]]5HVSRQVH5HODWLRQVKLSVWR'HULYH1XPHULF1XWU [[1818,2708,2067,2765][12][,I,][Times New Roman]]LHQW&ULWHULD [[2067,2708,2186,2765][12][,,][Times New Roman]](3$ [[2187,2708,2203,2765][12][,,][Times New Roman]] 61RYHPEHUDW &DVHFY'RFXPHQW)LOHGHUHQFH &DVHFY'RFXPHQW)LOHGX[DVDQLQGLFDWRUIRUQXWULHQWLPSDLUPHQW ZDVDUELWUDU\DQGFDSULFLRXVEHFDXVHWKHVHOHFWHG'2IOX[UDQJHRFFXUVQDWXUDOO\LQXQLPSDLUHG VWUHDPVDQGULYHUV 3DFNHW3J &DVHFY'RFXPHQW)LOHG &DVHFY'RFXPHQW)LOHGGHYHORSPHQW (3$¶VGHQLDORI&55¶VZLWKGUDZDOUHFRQVLGHUDWLRQUHTXHVWZDVDUELWUDU\DQG FDSULFLRXVEHFDXVHLQVRGRLQJ(3$UHMHFWHGWKHLQIRUPDWLRQWKDWFRQILUPHGWKH$JHQF\ 3DFNHW3J &DVHFY'RFXPHQW)LOHG &DVHFY'RFXPHQW)LOHG 'F 5DWLRQDOHIRUODZVXLWDJDLQVW86(3$UHJDUGLQJ DSSURYDORI03&$¶VVFLHQWLILFDOO\IODZHG ZDWHUTXDOLW\VWDQGDUGV 2Q-XO\WKH&HQWHUIRU5HJXODWRU\5HDVRQDEOHQHVV &55 RQEHKDOIRIWKH&RDOLWLRQRI *UHDWHU0LQQHVRWD&LWLHV &*0& DQGWKH0LQQHVRWD(QYLURQPHQWDO6FLHQFHDQG(FRQRPLF 5HYLHZ%RDUG 0(6(5% ILOHGDIHGHUDOODZVXLWDJDLQVWWKH86(QYLURQPHQWDO3URWHFWLRQ $JHQF\ (3$ WRFRPSHOWKH(3$WRZLWKGUDZLWVDSSURYDORIWKH0LQQHVRWD3ROOXWLRQ&RQWURO $JHQF\¶V 03&$ VFLHQWLILFDOO\IODZHGZDWHUTXDOLW\VWDQGDUGVIRUULYHUVDQGVWUHDPV 7KH&55ILOHGWKLVODZVXLWDJDLQVWWKH(3$EHFDXVH WKH(3$LOOHJDOO\DSSURYHG0LQQHVRWD¶V VWDQGDUGVEHFDXVHDFFRUGLQJWR(3$¶VRZQVFLHQWLILFH[SHUWVDQGUHJXODWLRQVWZRNH\HOHPHQWVRI 0LQQHVRWD¶VVWDQGDUGVDUHVFLHQWLILFDOO\IODZHGDQG GHVSLWHVLJQLILFDQWHIIRUWVWKH03&$KDV UHIXVHGWRIL[WKHUXOHVDQGWKHVWDWHDGPLQLVWUDWLYHDQGOHJDOSURFHVVKDVIDLOHGWRPHDQLQJIXOO\ H[DPLQHWKHOHJLWLPDWHVFLHQWLILFFRQFHUQVUDLVHGE\0(6(5%&*0&,IWKHODZVXLWLVVXFFHVVIXO LWZLOOIRUFHWKH03&$WRIL[WKHVFLHQWLILFIODZVLQLWVFXUUHQWUXOHV 0(6(5%DQGWKH&*0&UHPDLQFRPPLWWHGWRFOHDQLQJDQGSURWHFWLQJRXUFRPPXQLWLHV ² DQGWKH VWDWH¶VZDWHUUHVRXUFHV+RZHYHUWKHVFLHQWLILFDOO\IODZHGZDWHUTXDOLW\VWDQGDUGVIRUULYHUVDQG VWUHDPVPXVWEHDPHQGHGWRDYRLGWKHQHHGOHVVH[SHQGLWXUHRIPLOOLRQVRISXEOLFGROODUVIRU WUHDWPHQWXSJUDGHVWKDWIDLOWRPHDQLQJIXOO\LPSURYHDQGSURWHFWZDWHUTXDOLW\ )RUPRUHLQIRUPDWLRQDERXWWKHODZVXLWRUWKH03&$¶VUHFHQWO\DGRSWHGZDWHUTXDOLW\VWDQGDUGV SOHDVHFRQWDFWDWWRUQH\V&KULV+RRGDWFPKRRG#IODKHUW\KRRGFRPRU5REHUW6FRWWDW UWVFRWW#IODKHUW\KRRGFRPRU WƌĞƉĂƌĞĚĨŽƌƚŚĞŽĂůŝƚŝŽŶŽĨ'ƌĞĂƚĞƌDŝŶŶĞƐŽƚĂŝƚŝĞƐĂŶĚƚŚĞDŝŶŶĞƐŽƚĂŶǀŝƌŽŶŵĞŶƚĂů^ĐŝĞŶĐĞĂŶĚĐŽŶŽŵŝĐZĞǀŝĞǁŽĂƌĚďLJ&ůĂŚĞƌƚLJΘ ,ŽŽĚ͕W͘͘ϳͬϭϵͬϮϬϭϲ͘ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< 6HSWLF6\VWHP5HSODFHPHQW6DQLWDU\6HZHU8WLOLW\&RQQHFWLRQ$JUHHPHQW±/RW -DPLH0LOOHU \VWHP x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³WHPSRUDU\´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¶VGHFLVLRQWR LQLWLDWHDQGFRQVWUXFWVXFKD&LW\SURMHFW7KHQRWLFHRIWKH3XEOLF+HDULQJLVWRQRWLI\WKH2ZQHUVWKDW WKH&LW\LVFRQVLGHULQJWKHSURMHFWDQGWKHHVWLPDWHGFRVWVRIWKHSURMHFW 3DFNHW3J 'D 2ZQHUVDFNQRZOHGJHWKDWWKH3URSHUW\LVVXEMHFWWRD6DQLWDU\6HZHU&RQQHFWLRQ&KDUJHDQG D6HZHU$YDLODELOLW\&KDUJHIRUWKH3URSHUW\WRFRQQHFWWRWKH&LW\VDQLWDU\VHZHUV\VWHP2ZQHUVVKDOO PDNHSD\PHQWWRWKH&LW\IRUWKH&RQQHFWLRQ&KDUJHDQG$YDLODELOLW\&KDUJHDWWULEXWDEOHWRWKH3URSHUW\ FRQVLVWHQWZLWKWKH&LW\¶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¶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¶V&RQQHFWLRQ&KDUJH3ROLF\LQHIIHFWDWWKHWLPHRI FRQQHFWLRQRIWKH3URSHUW\WRWKH&LW\VDQLWDU\VHZHUV\VWHP3ULRUWRWKHVWDUWRID&LW\VDQLWDU\VHZHU H[WHQVLRQSURMHFWWRVHUYHWKH3URSHUW\&LW\VKDOOSURYLGHLQIRUPDWLRQWRWKH2ZQHUVUHJDUGLQJWKH FRQQHFWLRQFKDUJHUDWHVDGRSWHGIRUWKHSURMHFWDQGKRZWKH\DUHFDOFXODWHGDQGDSSOLHGWRWKH3URSHUW\ &LW\VKDOOILOHWKLV$JUHHPHQWZLWKWKH2OPVWHG&RXQW\5HFRUGHU¶V2IILFH2ZQHUVDJUHHWR UHLPEXUVHWKH&LW\IRUWKHGRFXPHQWSUHSDUDWLRQDQGUHFRUGLQJIHHSULRUWRWKH&LW\¶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±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³'HYHORSHU´DQGWKH 5RFKHVWHU D0LQQHVRWDPXQLFLSDOFRUSRUDWLRQKHUHLQDIWHUUHIHUUHGWRDV³&LW\´ :+(5($6WKH'HYHORSHULVSXUFKDVLQJIURP-RVHSK$6DPSVRQDQG(VWKHU(LOHHQ6DPSVRQUHDO SURSHUW\ORFDWHGLQWKH&LW\RI5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWDGHVFULEHGDV 6(($77$&+('(;+,%,7$ KHUHLQDIWHUUHIHUUHGWRDVWKH³3URSHUW\´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¶62%/,*$7,216)25)8785(&216758&7,212)3('(675,$1)$&,/,7,(6 $/21*9$//(<+,*+'5,9(1: 7KH'HYHORSHUDJUHHVWKDWWKHIROORZLQJUHTXLUHGSHGHVWULDQIDFLOLWLHVIRUWKH3URSHUW\FDQQRW SUDFWLFDOO\EHFRQVWUXFWHGDWWKHSUHVHQWWLPH x $ILYH IRRWZLGHFRQFUHWHVLGHZDONDORQJWKHHQWLUHIURQWDJHRIWKH3URSHUW\DEXWWLQJ 9DOOH\KLJK'ULYH1: KHUHLQDIWHUUHIHUUHGWRDVWKH³5HTXLUHG3HGHVWULDQ)DFLOLWLHV´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¶VREOLJDWLRQVUHODWHGWR WKHFRQVWUXFWLRQRI5HTXLUHG3HGHVWULDQ)DFLOLWLHVFRQVWUXFWHGE\WKH&LW\RULWVDJHQWXQGHUWKHWHUPV RIWKLV$JUHHPHQWZLOOEHHTXLWDEOHWRPHWKRGXVHGE\WKH&LW\WRFDOFXODWHWKHREOLJDWLRQVIRURWKHU SURSHUWLHVEHLQJDVVHVVHGFKDUJHGIRUIURQWDJHVRIWKHVDPHLPSURYHPHQWSURMHFW 'D 'HYHORSHUVKDOOVHFXUHH[HFXWLRQRIWKH&RQVHQWRI2ZQHUDWWDFKHGDV([KLELW&IURPWKHIHHRZQHUV RIWKH3URSHUW\ 'HYHORSHUDJUHHVWRSD\IRUUHFRUGLQJDQGSUHSDUDWLRQRIWKLVGRFXPHQWE\WKH&LW\ ,,&,7<¶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µ$¶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±1RUWK6XPPLW -DPLH0LOOHU WK6WUHHW3URSHUWLHV//&2ZQHUDQGWKH&LW\VWDIIKDYHKDGGLVFXVVLRQVUHODWLQJWRGHYHORSPHQWRI FHUWDLQSURSHUW\ JHQHUDOO\GHVFULEHGDVSDUWRIWKH1:óRIWKH1(óRI6HFWLRQ 'D '(9(/230(17$*5((0(17 1257+6800,7 'D :+(5($6&LW\DJUHHVWRDOORZWKHGHYHORSPHQWWRSURFHHGVXEMHFWWRH[HFXWLQJDQ $JUHHPHQWWKDWDGGUHVVHVWKHLPSDFWVRIWKH3URMHFWRQWKHSXEOLFLQIUDVWUXFWXUH 12:7+(5()25(LQFRQVLGHUDWLRQRIWKHPXWXDOEHQHILWVWRWKHSDUWLHVVHWIRUWK KHUHLQDQGRWKHUJRRGDQGYDOXDEOHFRQVLGHUDWLRQWKHDGHTXDF\RIZKLFKLVKHUHE\ DFNQRZOHGJHG2ZQHUDQG&LW\DJUHHDVIROORZV ,2:1(5¶62%/,*$7,216 $QQH[DWLRQ 1$WKH3URSHUW\LVDOUHDG\ZLWKLQWKLV&LW\RI5RFKHVWHU¶VFRUSRUDWHOL PLWV 3URSHUW\'HYHORSPHQW 8SRQH[HFXWLRQRIWKLV$JUHHPHQWE\2ZQHUDQG&LW\DQGVXEMHFWWR FRPSOLDQFHZLWKDOORWKHUDSSOLFDEOH2UGLQDQFHDQGSHUPLWDSSURYDOV2ZQHUPD\FRPSOHWHWKH GHYHORSPHQWDSSURYDOSURFHVVLQFOXGLQJUHFRUGLQJRI3ODW V IRUWKH3URSHUW\SULRUWRWKH FRQVWUXFWLRQRIWKHLQIUDVWUXFWXUHEHLQJFRPSOHWHGDVSURYLGHGIRULQ6HFWLRQVRI WKH5RFKHVWHU=RQLQJ2UGLQDQFHDQG/DQG'HYHORSPHQW0DQXDO2ZQHUVKDOOFRPSOHWHWKH GHYHORSPHQWSURFHVVIRUWKH3URSHUW\FRQVLVWLQJRISXEOLFDQGSULYDWHLPSURYHPHQWVDVVKRZQ RQWKHDSSURYHGJUDGLQJSODQ V DQGDSSURYHGVWUHHWDQGXWLOLW\SODQ V IRUWKH3URSHUW\ &LW\2ZQHU&RQWUDFW 2ZQHUVKDOOH[HFXWHD³&LW\2ZQHU&RQWUDFW´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³%´DQG([KLELW³%´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¶VGLVFUHWLRQZLWKLQGD\VDIWHULQYRLFLQJDIWHU&LW\2ZQHU [[772,2332,784,2389][12][B,I,][Times New Roman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¶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¶VIXWXUHFRQVWUXFWLRQRISHGHVWULDQUDPSVQHHGHGZLWKLQWKH GHYHORSPHQW3D\PHQWVKDOOEHGXHZLWKLQGD\VDIWHULQYRLFLQJDIWHUDSSURYDORIWKH&LW\ 2ZQHU&RQWUDFWIRUHDFKSKDVHRIWKLVGHYHORSPHQW7KHSHGHVWULDQUDPSUDWHVVKDOOEHEDVHGRQ WKHUDWHVLQSODFHDWWKHWLPHRIDSSURYDOIRUWKHVSHFLILF&LW\2ZQHU&RQWUDFW 3DUN'HGLFDWLRQ 2ZQHUKDVUHYLHZHGWKHSDUNGHGLFDWLRQUHTXLUHPHQWVZLWKLQWKH&LW\¶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¶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¶VRUWKH2ZQ HU¶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¶VUHDVRQDEOHFRVWV LQFRUUHFWLQJVDPHSOXVLQWHUHVWDWWKHMXGJHPHQWUDWHVKDOOEHSDLGE\WKH GHIDXOWLQJSDUW\WRWKHQRQGHIDXOWLQJSDUW\LPPHGLDWHO\XSRQGHPDQG LL,QMXQFWLYHUHOLHI LLL$FWLRQIRUVSHFLILFSHUIRUPDQFHDQG LY$FWLRQIRUPRQH\GDPDJHV E5HLPEXUVHPHQW$Q\DPRXQWVH[SHQGHGE\WKHQRQGHIDXOWLQJSDUW\LQHQIRUFLQJWKLV $JUHHPHQWLQFOXGLQJUHDVRQDEOHDWWRUQH\¶VIHHVVKDOOEHUHLPEXUVHGRUSDLGWRWKHQRQ GHIDXOWLQJSDUW\ F5HPHGLHVDUH&XPXODWLYH$OOUHPHGLHVSURYLGHGKHUHLQVKDOOEHFXPXODWLYHDQGWKH H[HUFLVHRIRQHUHPHG\VKDOOQRWSUHFOXGHWKHXVHRIDQ\RWKHURUDOORIVDLGUHPHGLHV G)DLOXUHWR(QIRUFHQRWD:DLYHU)DLOXUHRIDQ\SDUW\WRHQIRUFHDQ\SURYLVLRQVFRQWDLQHG KHUHLQVKDOOQRWEHGHHPHGDZDLYHURIWKDWSDUW\¶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¶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¶V0D\RU ,WVBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $WWHVWBBBBBBBBBBBBBBBBBBBBBBBBB%\BBBBBBBBBBBBBBBBBBBBBBBBBBBBB ,W¶V&LW\&OHUN ,WVBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 67$7(2)0,11(627$ 66 &2817<2)2/067(' 7KHIRUHJRLQJLQVWUXPHQWZDVDFNQRZOHGJHGEHIRUHPHWKLVBBBBBBBGD\RIBBBBBBBBBBBBBB &,7<2) E\$UGHOO)%UHGHDQG$DURQ65HHYHVWKH0D\RUDQG&LW\&OHUNUHVSHFWLYHO\RIWKH 52&+(67(5 D0LQQHVRWDPXQLFLSDOFRUSRUDWLRQRQEHKDOIRIWKHPXQLFLSDOFRUSRUDWLRQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWDU\3XEOLF 67$7(2)0,11(627$ 66 &2817<2)2/067(' 2QWKLVBBBBBGD\RIBBBBBBBBBBBBBBEHIRUHPHDQRWDU\SXEOLFZLWKLQDQGIRUVDLGFRXQW\ SHUVRQDOO\DSSHDUHGBBBBBBBBBBBBBBBBBBBBBBDQGBBBBBBBBBBBBBBBBBBBBBBBBWKH 7+ 675((7 BBBBBBBBBBBBBBBBBBBBBBDQGBBBBBBBBBBBBBBBBBBBBBBBBUHVSHFWLYHO\RI 3523(57,(6//& DQGZKRLVDUHSHUVRQDOO\NQRZQE\PHWREHWKHSHUVRQ V ZKRH[HFXWHGWKH IRUHJRLQJLQVWUXPHQWDQGDFNQRZOHGJHGWKDWKHVKHWKH\H[HFXWHGWKHVDPHDVKLVKHUWKHLUIUHHDFWDQG GHHGRQEHKDOIRIWKHFRPSDQ\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWDU\3XEOLF 7KLV'RFXPHQW'UDIWHG%\ 5RFKHVWHU3XEOLF:RUNV WK6WUHHW6(5RRP 5RFKHVWHU01 'D (;+,%,7µ$¶ /(*$/'(6&5,37,212)7+(3523(57< 7KH1RUWKZHVW4XDUWHU 1:ó RIWKH1RUWKHDVW4XDUWHU 1(ó RI6HFWLRQ 7RZQVKLS 'D (;+,%,7µ$¶ 5()(5(1&(/2&$7,21'5$:,1*2)7+(3523(57< 3DFNHW3J 'D (;+,%,7µ$¶ 5()(5(1&('5$:,1*)253+$6,1*3/$1 3DFNHW3J 'D (;+,%,7µ$¶ &23<2)352326('3+$6(3/$72)1257+6800,7 3DFNHW3J 'D (;+,%,7µ%¶ 1257+321'67250:$7(5)$&,/,7< 0$,17(1$1&($*5((0(17 2%/,*$7,216)257+((17,5(3523(57<(;&(377+$73$57'(3,&7('21 7+(35(&(',1*(;+,%,7$$6%/2&.1257+6800,7 7+ 675((73523(57,(6//& D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\KHUHLQDIWHUUHIHUUHGWR DVWKH³'(&/$5$17´GRHVKHUHE\PDNHWKLV'(&/$5$7,21 7KH'(&/$5$17LVWKHRZQHURIUHDOSURSHUW\LQWKH&LW\RI5RFKHVWHU2OPVWHG&RXQW\ 0LQQHVRWDGHVFULEHGDV 7KH1RUWKZHVW4XDUWHU 1:ó RIWKH1RUWKHDVW4XDUWHU 1(ó RI6HFWLRQ 7RZQVKLSLQJ([KLELW$DQGVKRZQ IRUUHIHUHQFHRQWKH*UDGLQJ3ODQH[KLELWDWWDFKHGKHUHWRZLWKLQWKLV0DLQWHQDQFH$JUHHPHQW 'HFODUDWLRQDQGKHUHLQDIWHUUHIHUUHGWRDVWKH³ 1RUWK3RQG)DFLOLWLHV´ 3DFNHW3J 'D '(&/$5$17DQG&LW\DJUHHWKDWWKHSRUWLRQRIWKH3URSHUW\WKDWEHQHILWVIURPWKH1RUWK 3RQG)DFLOLWLHVLVGHVFULEHGDVWKHHQWLUH3URSHUW\OHVVWKDWSDUWEHLQJSODWWHGDV%ORFN 1RUWK6XPPLW2OPVWHG&RXQW\0LQQHVRWDKHUHLQDIWHUUHIHUUHGWRDVWKH³1RUWK3RQG %HQHIL WWLQJ3URSHUW\´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¶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µ%¶ 67250:$7(5)$&,/,7<0$,17(1$1&($*5((0(17 2%/,*$7,216)25%,2),/75$7,21%$6,16(59,1*%/2&.1257+6800,7 7+ 675((73523(57,(6//& D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\KHUHLQDIWHUUHIHUUHGWR DVWKH³'(&/$5$17´GRHVKHUHE\PDNHWKLV'(&/$5$7,21 7KH'(&/$5$17LVWKHRZQHURIUHDOSURSHUW\LQWKH&LW\RI5RFKHVWHU2OPVWHG&RXQW\ 0LQQHVRWDGHVFULEHGDQGEHLQJSODWWHGDV 7KH1RUWKZHVW4XDUWHU 1:ó RIWKH1RUWKHDVW4XDUWHU 1(ó RI 6HFWLRQ7RZQVKLS SUHFHGLQJ([KLELW$DQGVKRZQIRUUHIHUHQFHRQWKH*UDGLQJ3ODQH[KLELWDWWDFKHGKHUHWR ZLWKLQWKLV6WRUP:DWHU)DFLOLW\0DLQWHQDQFH$JUHHPHQWDQGKHUHLQDIWHUUHIHUUHGWRDVWKH ³ 6RXWK3RQG)DFLOLWLHV´ 3DFNHW3J 'D '(&/$5$17DQG&LW\DJUHHWKDWWKHSRUWLRQRIWKH3URSHUW\WKDWEHQHILWVIURPWKH6RXWK 3RQG)DFLOLWLHVLVGHVFULEHGDVWKDWSDUWEHLQJSODWWHGDV%ORFN1RUWK6XPPLW2OPVWHG &RXQW\0LQQHVRWDKHUHLQDIWHUUHIHUUHGWRDVWKH³6RXWK3RQG%HQHILWWLQJ3URSHUW\´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¶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¶V&DSLWDO ,PSURYHPHQW3URJUDPLWHP 'D Á Á Á Á Á 3URMHFW/RFDWLRQ 352-(&7/2&$7,210$3 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< 3HGHVWULDQ)DFLOLWLHV 'ULYHZD\$SSURDFK$FFHVV$JUHHPHQW%ORPEHJ -DPLH0LOOHU 3URSHUW\ 6WDIIZRXOGRIIHUWKHIROORZLQJ3HGHVWULDQ)DFLOLWLHV 'ULYHZD\$SSURDFK$FFHVV$JUHHPHQWIRUFRQVLGHUDWLRQE\WKH &RXQFLO x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³2ZQHU´DQGWKH&,7<2)52&+(67(5D 0LQQHVRWDPXQLFLSDOFRUSRUDWLRQKHUHLQDIWHUUHIHUUHGWRDV³&LW\´ :+(5($6WKH2ZQHURZQVUHDOSURSHUW\LQWKH&LW\RI5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD GHVFULEHGDVIROORZV /27%/2&.6811<'$/(68%',9,6,212/067('&2817<0,11(627$ KHUHLQDIWHUUHIHUUHGWRDVWKH³3URSHUW\´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¶VVWDQGDUGGHVLJQ DQGDOVRLPSDFWWKH2ZQHU¶VDELOLW\WRFRQVWUXFWSHGHVWULDQIDFLOLWLHVDORQJWKHIURQWDJHRIWKH3URSHUW\ DWWKLVWLPHDQG :+(5($6WKH&LW\DQG2ZQHUDJUHHWKDWH[HFXWLRQRID3HGHVWULDQ)DFLOLWLHV 'ULYHZD\$SSURDFK $FFHVV$JUHHPHQWZLOOEHWRWKHPXWXDOEHQHILWRIWKH2ZQHUWKHDGMRLQLQJSURSHUW\RZQHUVDQGWKH &LW\ 12:7+(5()25(LQFRQVLGHUDWLRQRIWKHPXWXDOEHQHILWVWRWKHSDUWLHVVHWIRUWKKHUHLQDQGRWKHU JRRGDQGYDOXDEOHFRQVLGHUDWLRQWKHDGHTXDF\RIZKLFKLVKHUHE\DFNQRZOHGJHG2ZQHUDQG&LW\ DJUHHDVIROORZV ,2:1(5¶62%/,*$7,216 81'(567$1',1*6 7KH2ZQHUDJUHHVWKDWZKHQDSHGHVWULDQIDFLOLW\SURMHFWLVSURJUDPHGDORQJWKHIURQWDJHRI 6WUDWKPRUH/DQH6(KHLVREOLJDWHGIRUDOOFRVWVDVVRFLDWHGZLWKFRQVWUXFWLQJDIRRWZLGH FRQFUHWHVLGHZDONDORQJVDLGIURQWDJHRIWKH3URSHUW\DQGWKDWLWLVWKH&LW\¶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¶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¶VWHUPVDQGFRQGLWLRQVDQGWRFRQVXOWDQDWWRUQH\EHIRUHVLJQLQJWKLV$JUHHPHQW F KD V UHDGWKLV$JUHHPHQWDQGXQGHUVWDQGDOORIWKHWHUPVDSSUHFLDWHVWKHVLJQLILFDQFHRIWKRVHWHUPVDQG KDVPDGHWKHGHFLVLRQWRDFFHSWWKHPDVVWDWHGKHUHLQDQG G KDVQRWUHOLHGXSRQDQ\UHSUHVHQWDWLRQ RUVWDWHPHQWQRWVHWIRUWKKHUHLQ2ZQHU &LW\ZLVKWRDYRLGDQ\GHYHORSPHQWRUDGPLQLVWUDWLYH GHOD\VDVVRFLDWHGZLWKDOHJDOFKDOOHQJHWRDQ\RIWKHWHUPVRIWKLV$JUHHPHQW$VVXFK2ZQHU &LW\DJUHHWKDWWKH\ZLOOQRWFKDOOHQJHWKHOHJDOLW\RIDQ\WHUPRUFRQGLWLRQIRXQGZLWKLQWKLV$JUHHPHQW DQGVSHFLILFDOO\ZDLYHDQ\DQGDOOOHJDOREMHFWLRQVWKH\PD\KDYHWRDQ\VXFKWHUPRU FRQGLWLRQ1RWZLWKVWDQGLQJDQ\SURYLVLRQLQWKLV$JUHHPHQWWRWKHFRQWUDU\WKLVFODXVHZLOOVXUYLYH WKHWHUPLQDWLRQRUH[SLUDWLRQRIWKLV$JUHHPHQW 'D 'DWHGWKLVBBBBBGD\RIBBBBBBBBBBBBBBBBBBBBBBBBB ,1:,71(66:+(5(2)WKHSDUWLHVVHWWKHLUKDQGVDQGVHDOVDVRIWKHGDWHDQG\HDUILUVWDERYHZULWWHQ &LW\RI5RFKHVWHU2ZQHU D0LQQHVRWD 0XQLFLSDOFRUSRUDWLRQ %\ -(5(0<$%/20%(5* ,WV0D\RU $WWHVW ,WV&LW\&OHUN 67$7(2)0,11(627$ 66 &2817<2)2/067(' 7KHIRUHJRLQJLQVWUXPHQWZDVDFNQRZOHGJHGEHIRUHPHWKLVBBBBBBBGD\RIBBBBBBBBBBBBBB E\$UGHOO)%UHGHDQG$DURQ65HHYHVWKH0D\RUDQG&LW\&OHUNUHVSHFWLYHO\RIWKH&LW\RI 5RFKHVWHUD0LQQHVRWDPXQLFLSDOFRUSRUDWLRQIRUDQGRQEHKDOIRIWKHPXQLFLSDOFRUSRUDWLRQ 127$5<38%/,& 67$7(2)0,11(627$ 66 &2817<2)2/067(' 7KHIRUHJRLQJZDVDFNQRZOHGJHGEHIRUHPHWKLVBBBBBGD\RIBBBBBBBBBBBBBBE\ -(5(0<$%/20%(5* DVLQJOHSHUVRQDQGZKRLVSHUVRQDOO\NQRZQWRPHWREHWKHSHUVRQZKR H[HFXWHGWKHIRUHJRLQJLQVWUXPHQWDQGDFNQRZOHGJHGWKDWKHH[HFXWHGWKHVDPHDVKLVIUHHDFWDQGRQ KLVRZQEHKDOI 127$5<38%/,& 7+,6,167580(17'5$)7('%< 5RFKHVWHU3XEOLF:RUNV2IILFH 6W6(5RRP WK 5RFKHVWHU0LQQHVRWD 3DFNHW3J 'D 5HIHUHQFHGUDZLQJRIWKH %ORPEHUJ3URSHUW\ 6WUDWKPRUH/DQH6( 3DFNHW3J 'WHPVQRWHGLQWKHOHJLVODWLRQVXFKDVQRSHUPDQHQW IRXQGDWLRQDFFHVVLELOLW\UHTXLUHPHQWVRUWKHLQVXODWLRQUHTXLUHPHQWV 8WLOLW\KRRNXSVDUHDOVRSUREOHPDWLF7KHVWDWXWHUHTXLUHPHQWWKDWZDWHUDQGHOHFWULFDOXWLOLW\VHUYLFHEH SURYLGHGWKURXJKWKHSULQFLSDOGZHOOLQJPD\EHLQYLRODWLRQRI538UXOHV7KHUHGRHVQRWDSSHDUWREHDQ\ PHDQVIRUVHZHUFRQQHFWLRQZKLFKZRXOGEHDYLRODWLRQRIWKHSOXPELQJFRGHXQOHVVWKHUHZDVDSHUPLWLVVXHG E\WKHFRXQW\IRUDKROGLQJWDQN 6WDIIEHOLHYHVWKLVVWDWXWHUHTXLUHVUHILQHPHQWDQGDGGLWLRQDOUHVHDUFKEHIRUHZHFRXOGUHFRPPHQGRSWLQJLQ,I DVWDWXWHLVUHYLVHGLQDZD\WKDWDGGUHVVHVWKHVHDQGRWKHUDUHDVRIFRQFHUQWKH&LW\&RXQFLOFRXOGFKRRVHWR RSWEDFNLQWRWKLVOHJLVODWLRQDWDQ\WLPH7KHUHIRUHVWDIIUHFRPPHQGVWKH&LW\&RXQFLOLQLWLDWHDWH[W DPHQGPHQWDOORZLQJWKH&LW\RI5RFKHVWHUWRRSWRXWRIWKLVQHZUHTXLUHPHQW &281&,/$&7,215(48(67(' ,IWKH&RXQFLOZLVKHVWRSURFHHGZLWKWKHLQLWLDWLRQRIWKHWH[WDPHQGPHQWLWVKRXOGPRYHWRLQVWUXFWVWDIIWRSUHSDUH DQRUGLQDQFHIRUDGRSWLRQ [[662,2664,673,2711][10][B,I,][Times New Roman]] 3DFNHW3J 'UHQWRUGLQDQFHVLQOLJKWRIWKHQHZODZ /DZV&KDSWHU 6RPHFLWLHVDVNHGLIRWKHUVWDWHVKDYHDGRSWHGWKLVW\SHRIODZ7KHRQO\VWDWHVWKDWKDYHDVRPHZKDWVLPLODUVWDWXWH DWWKHWLPHRISXEOLFDWLRQRIWKLV)$4DUH1RUWK&DUROLQDDQG9LUJLQLD,WLVZRUWKQRWLQJWKDWVRPHVWDWHVKDYHDGRSWHG $FFHVVRU\'ZHOOLQJ8QLW $'8 VWDWXWHVWRDOORZJUDQQ\IODWVKRZHYHUWKHVH$'8VWDWXWHVGLIIHUIURP0LQQHVRWD¶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x 1DPHRIWKHPHQWDOO\RUSK\VLFDOO\LPSDLUHGSHUVRQ x 3URRIRIFDUHIURPDSURYLGHUQHWZRUNLQFOXGLQJUHVSLWHFDUHSULPDU\FDUHRUUHPRWH PRQLWRULQJ x :ULWWHQFHUWLILFDWLRQVLJQHGE\D0LQQHVRWDOLFHQVHGSK\VLFLDQSK\VLFLDQDVVLVWDQWRU DGYDQFHGSUDFWLFHUHJLVWHUHGQXUVHWKDWWKHLQGLYLGXDOZLWKWKHPHQWDORUSK\VLFDO LPSDLUPHQWQHHGVDVVLVWDQFHSHUIRUPLQJWZRRUPRUH³LQVWUXPHQWDODFWLYLWLHVRIGDLO\ 'VRQZKRLVDUHVLGHQWRIWKLVVWDWHDQGZKRUHTXLUHVDVVLVWDQFHZLWKWZR RUPRUHLQVWUXPHQWDODFWLYLWLHVRIGDLO\OLYLQJDVFHUWLILHGE\DSK\VLFLDQDSK\VLFLDQDVVLVWDQWRU DQDGYDQFHGSUDFWLFHUHJLVWHUHGQXUVHOLFHQVHVWRSUDFWLFHLQWKLVVWDWH´7KHODZVSHFLILFDOO\OLPLWV WKHWLPHIUDPHIRUWKHVHWHPSRUDU\GZHOOLQJVSHUPLWVWRPRQWKVZLWKDRQHWLPHPRQWK UHQHZDORSWLRQ)XUWKHUWKHUHFDQEHRQO\RQHGZHOOLQJSHUORWDQGRQO\RQHGZHOOHUZKRUHVLGHV ZLWKLQWKHWHPSRUDU\GZHOOLQJ 7KHODZH[SUHVVO\H[HPSWVDWHPSRUDU\IDPLO\KHDOWKFDUHGZHOOLQJIURPEHLQJFRQVLGHUHG³KRXVLQJZLWKVHUYLFHV HVWDEOLVKPHQW´ZKLFKLQWXUQUHVXOWVLQWKHRUROGHUDJHUHVWULFWLRQVHWIRUWKIRU³KRXVLQJZLWKVHUYLFHV HVWDEOLVKPHQW´QRWDSSO\LQJ 3DFNHW3J 'ODZLQFOXGH" $VLGHIURPWKHFRQVWUXFWLRQUHTXLUHPHQWVRIWKHXQLWWKHWHPSRUDU\IDPLO\KHDOWKFDUHGZHOOLQJ PXVWEHORFDWHGLQDQDUHDRQWKHSURSHUW\ZKHUH³VHSWLFVHUYLFHVDQGHPHUJHQF\YHKLFOHVFDQJDLQ DFFHVVWRWKHWHPSRUDU\IDPLO\KHDOWKFDUHGZHOOLQJLQDVDIHDQGWLPHO\PDQQHU´ :KDWORFDORUGLQDQFHVDQG]RQLQJDSSO\WRDWHPSRUDU\KHDOWKFDUHGZHOOLQJ" 7KHQHZODZVWDWHVWKDWRUGLQDQFHVUHODWHGWRDFFHVVRU\XVHVDQGUHFUHDWLRQDOYHKLFOHVWRUDJHDQG SDUNLQJGRQRWDSSO\WRWKHVHWHPSRUDU\IDPLO\KHDOWKFDUHGZHOOLQJV 7KH/HJLVODWXUHGLGQRWSURYLGHJXLGDQFHRQZKDWUHSUHVHQWV³RWKHUFRPSDUDEOHPHDQV´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³WKDWWKHSHUVRQZKRZLOOUHVLGHLQWKHWHPSRUDU\IDPLO\KHDOWKFDUHGZHOOLQJQHHGV DVVLVWDQFHZLWKWZRRUPRUHLQVWUXPHQWDODFWLYLWLHVRIGDLO\OLYLQJ´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³WKHDSSOLFDWLRQUHIOHFWVPRGLILFDWLRQV WKDWKDYHHYROYHGWKURXJKWKHUHYRFDEOHSHUPLWWLQJSURFHVVVWUXFWXUDODQDO\VLVUHILQHPHQWRILQWHULRUGHVLJQ GHWDLOVDQGDOWHUQDWHFRQVWUXFWLRQPHWKRGV´6KRZQEHORZLVDVXPPDU\RISURSRVHGFKDQJHV$GHWDLOHGOLVW SURYLGHGE\WKHDSSOLFDQWLVDWWDFKHG 3URSRVHGVLWHGHVLJQFKDQJHV x UGWK 5HORFDWLRQRIRQHELNHUDFNIURPWKH$YHQXHIURQWDJHWRWKH6WUHHWIURQWDJH x UG &KDQJHVWRWUHHVSDFLQJDORQJ$YHQXHZLWKWRPDNHVSDFLQJPRUHFRQVLVWHQW x UG /HQJWKHQLQJRIWUHHSODQWHUDUHDVDORQJWKH$YHQXHIURQWDJH 3URSRVHGH[WHULRUEXLOGLQJGHVLJQFKDQJHV x $GMXVWPHQWRIWKHJDUDJHHQWU\ZDOOVHYHUDOIHHWWRWKHVRXWKWRDFFRPPRGDWHPHFKDQLFDOV\VWHP QHHGV x 5HSODFHPHQWRIVKHHWSLOLQJVZLWKFRQFUHWHEORFNIRUVRXWKZDOODORQJXQGHUJURXQGSDUNLQJ/HYHO3 x $OWHUDWLRQWRFDQRS\DWQRUWKZHVWFRUQHUWRKDYHDFXUYHGHGJHDWFRUQHULQVWHDGRIVTXDUHHGJH x &KDQJHWRH[WHULRUZDOOUHFHVVIRUXQLWVLILFDWLRQVWRXQLWVDQG x )XUWKHUGHYHORSPHQWRIGHWDLOVHTXLSPHQWORFDWLRQVDQGVL]HVRQURRISODQ x 8SGDWHWRSHQWKRXVHRYHUKDQJWKLFNQHVV x 6KLIWLQEDOFRQ\GRRUVDQGRSHQLQJVIRUVRXWKZHVWFRUQHUXQLWV x 3DLQWHG&08WRUHSODFHVSOLWIDFHFRQFUHWHEORFNRQVRXWKDQGHDVWH[WHULRUZDOORQ /HYHO x 9DULRXVFKDQJHVWRH[WHULRUVLGLQJPDWHULDOIURPFHPHQWVLGLQJWRD6WR4XLN6LOYHU'UDLQVFUHHQV\VWHP &RORUVDQGVFRULQJSDWWHUQVJHQHUDOO\WRUHPDLQWKHVDPHZLWKDIHZH[FHSWLRQVLQSHQWKRXVHURRIVRIILW DQGH[WHULRUZDOODUHDVODEHOHG6'* x &KDQJHLQFRQVWUXFWLRQPHWKRGLQH[WHULRUZDOOWRXVHSUHIDEULFDWHGH[WHULRUZDOOSDQHOV 3URSRVHGLQWHULRUEXLOGLQJGHVLJQFKDQJHV x 5HORFDWLRQRI*HQHUDWRUURRPIURPEHORZJUDGHSDUNLQJOHYHOWR/HYHO x 0LQRUFKDQJHVWR(QWU\/REE\DWWKHQRUWKZHVWFRUQHURIWKHEXLOGLQJ x 5HGHVLJQRIVHFRQGVWRU\URRIGHFNOREE\WREHFRPHSDUWRIFRUULGRUDQGDGMDFHQWXQLWV &RQGLWLRQRIWKH,QFHQWLYH'HYHORSPHQW5&83VWDWHVWKHIROORZLQJ ³ 7KH&RXQFLO¶VDFWLRQVLQDSSURYLQJWKLVGHYHORSPHQWRFFXULQUHVSRQVHWRWKHDSSOLFDQW¶VRUKLVKHU 3DFNHW3J ( UHSUHVH QWDWLYH¶VRUDODQGZULWWHQUHSUHVHQWDWLRQVDVWRWKHDSSHDUDQFHRIWKHEXLOGLQJGHVLJQH[WHULRUIDoDGH DQGODQGVFDSLQJ$VVXFKWKHDSSOLFDQWPXVWQRWGHYLDWHIURPWKHDSSHDUDQFHRIWKHEXLOGLQJGHVLJQH[WHULRU IDoDGHDQGODQGVFDSLQJDVRULJLQDOO\SUHV HQWHGWRWKH&RXQFLOZLWKRXWWKH&RXQFLO¶VSULRUDSSURYDO´ 6WDII5HFRPPHQGDWLRQ 6WDIIZRXOGUHFRPPHQGWKH&RXQFLOPDNHDGHWHUPLQDWLRQLIWKHSURSRVHGFKDQJHVWRWKHSURSRVDODUHDQ DFFHSWDEOHFKDQJHWRWKH,QFHQWLYH'HYHORSPHQW5&837KH&RXQFLOPD\DSSURYHDSSURYHZLWK FRQGLWLRQVRUGHQ\WKHSURSRVHGDPHQGPHQWWRWKHDSSURYHG,QFHQWLYH'HYHORSPHQW &281&,/$&7,215(48(67(' ,IWKH&RXQFLOZLVKHVWRSURFHHGZLWKDSSURYDORIWKHGHYHORSPHQWLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WR SUHSDUHDUHVROXWLRQDSSURYLQJWKHDPHQGHG,QFHQWLYH'HYHORSPHQW 3DFNHW3J (D dŚĞƵĐŬĞLJĞʹEĂƌƌĂƚŝǀĞŽĨŚĂŶŐĞƐ :ƵůLJϭϭ͕ϮϬϭϲ ^ŝƚĞ ^ŚĞĞƚϬϭϬƌĐŚŝƚĞĐƚƵƌĂů^ŝƚĞWůĂŶ x ďŝŬĞƌĂĐŬŚĂƐďĞĞŶŵŽǀĞĚĨƌŽŵƚŚĞǁĞƐƚƚŽƚŚĞŶŽƌƚŚƐŝĚĞ͘ x dŚĞƚƌĞĞƐƉĂĐĞŚĂƐďĞĞŶƐƉƌĞĂĚĨƵƌƚŚĞƌĂƉĂƌƚĨŽƌƐŝƚĞůŝŶĞƐĂŶĚŐƌŽǁƚŚ͘ x tŝĚĞƌƉůĂŶƚŝŶŐĂƌĞĂƐŚĂǀĞďĞĞŶĂĚĚĞĚĂƌŽƵŶĚƚŚĞƐŝĚĞǁĂůŬƚƌĞĞƐ͘ x dŚĞŶŽƌƚŚŐĂƌĂŐĞĞŶƚƌLJǁĂůůŚĂƐŵŽǀĞĚƚŽĐŽŽƌĚŝŶĂƚĞǁŝƚŚŵĞĐŚĂŶŝĐĂůƐLJƐƚĞŵŶĞĞĚƐ͘ &ůŽŽƌWůĂŶƐ ^ŚĞĞƚϬϵϵ>ĞǀĞůWϭWĂƌŬŝŶŐ x dŚĞƐŽƵƚŚǁĂůůƐŚĞĞƚƉŝůŝŶŐǁĞĐŚĂŶŐĞĚƚŽĂĐŽŶĐƌĞƚĞďůŽĐŬǁĂůů͘tŽƌŬŝŶŐǁŝƚŚƚŚĞĂĚũĂĐĞŶƚ ůĂŶĚŽǁŶĞƌĂůůŽǁƐƚŚŝƐǁĂůůƚŽďĞďƵŝůƚǁŝƚŚŽƵƚƚŚĞĂĚĚŝƚŝŽŶĂůŶĞĞĚƐĨŽƌůŽĂĚƉŽƵŶĚŝŶŐĂŶĚ ǀŝďƌĂƚŝŽŶƐƚŽŝŶƐƚĂůůƐŚĞĞƚƉŝůŝŶŐƐ͘ x dŚĞ'ĞŶĞƌĂƚŽƌƌŽŽŵŚĂƐďĞĞŶŵŽǀĞĚƚŽƚŚĞĨŝƌƐƚĨůŽŽƌŝŶƚŚĞƐĂŵĞůŽĐĂƚŝŽŶ͘dŚŝƐƐŚŽƌƚĞŶƐƚŚĞ ĞůĞĐƚƌŝĐĂůĨĞĞĚƌĞƋƵŝƌĞĚĂŶĚƌĂŝƐĞƐƚŚĞŐĞŶĞƌĂƚŽƌƌŽŽŵĂďŽǀĞƚŚĞϭϬϬLJĞĂƌĨůŽŽĚƉůĂŶĞĞůĞǀĂƚŝŽŶ͘ ^ŚĞĞƚϭϬϭ>ĞǀĞůϭ&ůŽŽƌWůĂŶ x dŚĞ'ĞŶĞƌĂƚŽƌƌŽŽŵŝƐƌĞůŽĐĂƚĞĚĨƌŽŵ>ĞǀĞůWϭƚŽƚŚĞĨŝƌƐƚĨůŽŽƌŝŶƚŚĞƐĂŵĞůŽĐĂƚŝŽŶ͘dŚŝƐ ƐŚŽƌƚĞŶƐƚŚĞĞůĞĐƚƌŝĐĂůĨĞĞĚƌĞƋƵŝƌĞĚĂŶĚƌĂŝƐĞƐƚŚĞŐĞŶĞƌĂƚŽƌƌŽŽŵĂďŽǀĞƚŚĞϭϬϬLJĞĂƌĨůŽŽĚ ƉůĂŝŶĞůĞǀĂƚŝŽŶ͘ x DŝŶŽƌŵŽĚŝĨŝĐĂƚŝŽŶƐǁĞƌĞŵĂĚĞƚŽƚŚĞŶƚƌLJ>ŽďďLJĚĞƐŝŐŶ ^ŚĞĞƚϭϬϮ>ĞǀĞůϮ&ůŽŽƌWůĂŶ x dŚĞƐƚƌĞĞƚĐŽƌŶĞƌĞdžƚĞƌŝŽƌĐĂŶŽƉLJǁŝůůďĞĐƵƌǀĞĚƉĞƌWƵďůŝĐtŽƌŬƐĂŶĚƌĞǀŽĐĂďůĞƉĞƌŵŝƚ ĐŽŵŵĞŶƚƐ͘ x dŚĞŝŶƚĞƌŝŽƌůŽďďLJĨƌŽŵƚŚĞƌŽŽĨĚĞĐŬŚĂƐďĞĞŶƌĞĚĞƐŝŐŶĞĚƚŽďĞĐŽŵĞƉĂƌƚŽĨƚŚĞĐŽƌƌŝĚŽƌ͘ ĚũĂĐĞŶƚƵŶŝƚƐŚĂǀĞďĞĞŶƌĞĚĞƐŝŐŶĞĚƚŽĂďƐŽƌďƉĂƌƚŽĨƚŚŝƐƐƉĂĐĞ͘ x >ĞǀĞůϮhŶŝƚƐϮϭϲ͕Ϯϭϳ͕ϮϭϴƵŶŝƚĚĞƐŝŐŶĐŚĂŶŐĞƐŽŵŝƚƚĞĚĂƌĞĐĞƐƐĞdžƚĞƌŝŽƌǁĂůůĨŽƌƐƚƌƵĐƚƵƌĂů ĐŽŽƌĚŝŶĂƚŝŽŶƌĞĂƐŽŶƐ͘ x ŽƌŶĞƌhŶŝƚϮϭϱƵŶŝƚĚĞƐŝŐŶĐŚĂŶŐĞŝŶĐůƵĚĞƐĂŶƵƉĚĂƚĞĚďĂůĐŽŶLJĂĐĐĞƐƐŵŽĚŝĨŝĐĂƚŝŽŶ͘dŚŝƐŝƐ ƐŝŵŝůĂƌĨŽƌƚŚŝƐĐŽƌŶĞƌƵŶŝƚ>ĞǀĞůϮͲϱ͘ x dŚĞŵĞŶŝƚŝĞƐĂƌĞĂZŽŽĨĞĐŬĚĞƐŝŐŶŚĂƐďĞĞŶĨƵƌƚŚĞƌĚĞǀĞůŽƉĞĚƐŚŽǁŝŶŐƵŶŝƚƚĞƌƌĂĐĞƐĂŶĚ ĨƵƌŶŝƚƵƌĞůĂLJŽƵƚ͘ ^ŚĞĞƚϭϬϯ>ĞǀĞůϯ&ůŽŽƌWůĂŶ x ŽƌŶĞƌhŶŝƚϯϭϱƵŶŝƚĚĞƐŝŐŶĐŚĂŶŐĞŝŶĐůƵĚĞƐĂŶƵƉĚĂƚĞĚďĂůĐŽŶLJĂĐĐĞƐƐŵŽĚŝĨŝĐĂƚŝŽŶ͘dŚŝƐŝƐ ƐŝŵŝůĂƌĨŽƌƚŚŝƐĐŽƌŶĞƌƵŶŝƚ>ĞǀĞůϮͲϱ͘ ^ŚĞĞƚϭϬϲ>ĞǀĞůϲ&ůŽŽƌWůĂŶ x dŚĞůƵďƌŽŽŵΘŵĞŶŝƚŝĞƐĂƌĞĂZŽŽĨĞĐŬĚĞƐŝŐŶƐŚĂǀĞďĞĞŶĨƵƌƚŚĞƌĚĞǀĞůŽƉĞĚ͘ x DŝŶŽƌhŶŝƚŵŽĚŝĨŝĐĂƚŝŽŶƐŚĂǀĞďĞĞŶŵĂĚĞƚŽhŶŝƚWĞŶƚŚŽƵƐĞƐϲϬϰ͕ϲϭϱ͕ϲϭϲ͘ ^ŚĞĞƚϭϬϳZŽŽĨWůĂŶ x ĚĚŝƚŝŽŶĂůĚĞƚĂŝůƐ͕ĞƋƵŝƉŵĞŶƚůŽĐĂƚŝŽŶƐĂŶĚƐŝnjĞƐŚĂǀĞďĞĞŶĨŝŶĂůŝnjĞĚŽŶƚŚĞƌŽŽĨƉůĂŶ͘ 3DFNHW3J (D džƚĞƌŝŽƌůĞǀĂƚŝŽŶƐ ^ŚĞĞƚϰϬϭdžƚĞƌŝŽƌůĞǀĂƚŝŽŶƐ x WĞŶƚŚŽƵƐĞŽǀĞƌŚĂŶŐƚŚŝĐŬŶĞƐƐĂŶĚĞůĞǀĂƚŝŽŶƐŚĂǀĞďĞĞŶƵƉĚĂƚĞĚƚŽĐŽŽƌĚŝŶĂƚĞǁŝƚŚƐƚƌƵĐƚƵƌĂů͘ x dŚĞ^ŽƵƚŚǁĞƐƚĐŽƌŶĞƌƵŶŝƚďĂůĐŽŶLJĚŽŽƌĂŶĚŽƉĞŶŝŶŐƐŚĂǀĞƐŚŝĨƚĞĚĂƚƚŚĞƐĞĐŽƌŶĞƌƵŶŝƚƐ͘ x dŚĞtĞƐƚůĞǀĂƚŝŽŶ>ĞǀĞůϮƌĞĐĞƐƐĂƚƚŚĞƵŶŝƚƐŚĂǀĞďĞĞŶŽŵŝƚƚĞĚƚŽĐŽŽƌĚŝŶĂƚĞǁŝƚŚƚŚĞ ƐƚƌƵĐƚƵƌĂůĚĞƐŝŐŶ͘ x dŚĞ^ŽƵƚŚĂŶĚĂƐƚ>ĞǀĞůϭĞdžƚĞƌŝŽƌǁĂůůŚĂƐďĞĞŶĐŚĂŶŐĞĚƚŽĂƉĂŝŶƚĞĚDhǁĂůůǀĞƌƐĞƚŚĞƐƉůŝƚ ĨĂĐĞĐŽŶĐƌĞƚĞďůŽĐŬ͘dŚĞƉĂŝŶƚĐŽůŽƌǁŽƌŬƐďĞƚƚĞƌǁŝƚŚƚŚĞŽǀĞƌĂůůĐŽůŽƌƐĐŚĞŵĞ͘ x dŚĞƉĞŶƚŚŽƵƐĞƌŽŽĨŽǀĞƌŚĂŶŐƐŽĨĨŝƚŝƐĐŚĂŶŐŝŶŐĨƌŽŵĂŵĞƚĂůĨĂƐĐĂŝǁŝƚŚĂǁŽŽĚůŽŽŬƚŽƚŚĞ ^ƚŽYƵŝŬ^ŝůǀĞƌƌĂŝŶ^ĐƌĞĞŶƐLJƐƚĞŵ͘dŚĞĐŽůŽƌĐŚĂŶŐĞƐƚŽĂůŝŐŚƚǁŚŝƚĞƐŚĂĚĞƚŽďĞƌĞĨůĞĐƚŝǀĞĂŶĚ ĂůůŽǁŵŽƌĞůŝŐŚƚŝŶƚŚĞƐĞĂƌĞĂƐ͘;^ĞĞƌĞŶĚĞƌŝŶŐͿ x džƚĞƌŝŽƌůĞǀĂƚŝŽŶ<ĞLJDĂƚĞƌŝĂů/ŚĂƐĐŚĂŶŐĞĚĨƌŽŵĂƉĂŝŶƚĞĚĐĞŵĞŶƚďŽĂƌĚƐŝĚŝŶŐƚŽĂ^ƚŽYƵŝŬ ^ŝůǀĞƌƌĂŝŶ^ĐƌĞĞŶƐLJƐƚĞŵŽǀĞƌĐĞŵĞŶƚďŽĂƌĚ͘ŽůŽƌƐĂŶĚƐĐŽƌŝŶŐƉĂƚƚĞƌŶƐƌĞŵĂŝŶƵŶĐŚĂŶŐĞĚ͘ dŚĞŽŶĞĞdžĐĞƉƚŝŽŶŝƐ^'ͲϮǁŚŝĐŚǁŝůůďĞĐŽŵĞĂŶĂĐĐĞŶƚƉĂŝŶƚĐŽůŽƌǀĞƌƐĞĂǁŽŽĚŐƌĂŝŶĞĚ ƚĞdžƚƵƌĞĚĨŝŶŝƐŚ͘^ĐŽƌŝŶŐƉĂƚƚĞƌŶƐĨŽƌ^'ͲϮǁŝůůƌĞŵĂŝŶƚŚĞƐĂŵĞ͘dŚĞǀŝĞǁŝŶŐĚŝƐƚĂŶĐĞƚŽƚŚŝƐ ƉĂŶĞůĂďŽǀĞŐƌĂĚĞĂŶĚƚŚĞƐĐĂůĞŽĨƚŚĞǁŽŽĚƚĞdžƚƵƌĞŵĂŬĞƐƚŚĞĐŚĂŶŐĞŝŶŵĂƚĞƌŝĂůƚĞdžƚƵƌĞǀĞƌLJ ĚŝĨĨŝĐƵůƚƚŽĚĞƚĞƌŵŝŶĞ͘ x dŚĞƐŝĚŝŶŐŵĂƚĞƌŝĂůŝƐĐŚĂŶŐŝŶŐĨƌŽŵĂĨŝĞůĚŝŶƐƚĂůůĞĚĂŶĚƉĂŝŶƚĞĚĐĞŵĞŶƚƉĂŶĞůŝŶŐƌĂŝŶƐĐƌĞĞŶ;Ăŝƌ ƐƉĂĐĞͿƐLJƐƚĞŵƚŽĂ^ƚŽYƵŝŬ^ŝůǀĞƌƌĂŝŶ^ĐƌĞĞŶƐLJƐƚĞŵǁŚŝĐŚŝƐĂƐƚƵĐĐŽĂƉƉĞĂƌŝŶŐŚŝŐŚ ƉĞƌĨŽƌŵĂŶĐĞĨŝŶŝƐŚĞĚĂƉƉůŝĞĚŽǀĞƌĂĚƌĂŝŶĂŐĞŵĂƚ͕ĂŝƌĂŶĚŵŽŝƐƚƵƌĞďĂƌƌŝĞƌŽŶĂĐĞŵĞŶƚďŽĂƌĚ ƐŚĞĂƚŚŝŶŐ͘ x dŚĞŵĞĂŶƐĂŶĚŵĞƚŚŽĚƐƵƐĞĚďLJƚŚĞĐŽŶƚƌĂĐƚŽƌƚŽĐŽŶƐƚƌƵĐƚdŚĞƵĐŬĞLJĞƉƌŽũĞĐƚǁŝůůƵƐĞ ƉƌĞĨĂďƌŝĐĂƚĞĚĞdžƚĞƌŝŽƌǁĂůůƉĂŶĞůƐ͘dŚĞƐĞǁĂůůƉĂŶĞůǁŝůůďĞĨĂďƌŝĐĂƚĞĚŝŶĂǁĂƌĞŚŽƵƐĞĂŶĚ ďƌŽƵŐŚƚƚŽƚŚĞƐŝƚĞ͘dŚĞƉĂŶĞůƐǁŝůůďĞĨƌĂŵĞĚǁĂůůƐǁŝƚŚĂůůƚŚĞĞdžƚĞƌŝŽƌĨŝŶŝƐŚĞƐŝŶĐůƵĚŝŶŐ ǁŝŶĚŽǁƐĂŶĚĚŽŽƌƐŝŶƐƚĂůůĞĚ͘dŚĞƚŝŵĞĨƌĂŵĞŶĞĞĚĞĚƚŽĞƌĞĐƚƚŚĞĞdžƚĞƌŝŽƌǁĂůůƐǁŝůůďĞƌĞĚƵĐĞĚ ĂŶĚŵŝŶŝŵŝnjĞƚŚĞǁŽƌŬƌĞƋƵŝƌĞĚŽŶƚŚĞĞdžƚĞƌŝŽƌŽĨƚŚĞďƵŝůĚŝŶŐĚƵƌŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶ͘dŚŝƐ ŵŝŶŝŵŝnjĞĚƚŚĞŶĞĞĚĨŽƌĞdžƚĞƌŝŽƌƐĐĂĨĨŽůĚŝŶŐ͘tŝŶƚĞƌĐŽŶƐƚƌƵĐƚŝŽŶǁŝůůŶŽƚĚĞůĂLJƉĂŝŶƚŝŶŐŽƌ ŝŶƐƚĂůůĂƚŝŽŶ͘dŚĞĨŝŶŝƐŚĞĚƉƌŽĚƵĐƚǁŝůůďĞǀŝƐŝďůĞŝŵŵĞĚŝĂƚĞůLJ͘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rial]].DUO [[-48,106,14,189][13][B,I,][Arial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¶VREOLJDWLRQIRULQDGHTXDWHSDUNODQG7KH3DUN DQ G5HFUHDWLRQ'HSDUWPHQW¶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ial]] [[2008,2341,2311,2398][12][,I,][Arial]] SD\PHQWWR [[360,2398,531,2455][12][,I,][Arial]]WKH&LW\ [[530,2398,543,2455][12][,,][Arial]] 75((5(48,5(0(176 [[760,2481,773,2538][12][,I,][Arial]] [[812,2481,825,2538][12][,I,][Arial]] ±[[800,2485,813,2538][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 )G 52&+(67(5 0LQQHVRWD 72&RQVROLGDWHG3ODQQLQJ'HSDUWPHQW &DPSXV'ULYH6( '(3$570(172)38%/,& 5RFKHVWHU01 :25.6 WK 6WUHHW6(5RRP 5RFKHVWHU01 )G 3DFNHW3J )G )URP/DZ%U\DQ 7R3ODQQLQJ5HIHUUDOV 6XEMHFW5(5HTXHVWIRU&RPPHQWV53/$77KH8SWRZQ 'DWH0RQGD\-XQH$0 dŚŝƐƐŝƚĞŝƐĂďŽƵƚϴϱϬĨĞĞƚƐŽƵƚŚŽĨƚŚĞZŽƵƚĞϴƐƚŽƉŽŶϮ^ƚ^tĂŶĚϭϴǀĞ^t͘/ƚŝƐĂůƐŽũƵƐƚƵŶĚĞƌ ϴϬϬĨĞĞƚĨƌŽŵƚŚĞƐƚŽƉĂƚϮ^ƚ^tĂŶĚϭϲǀĞ^t͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϭE͕ϴ͕ϭϮ͕ϭϮD͕ĂŶĚ ϭϵ͘/ƚŝƐĂďŽƵƚϭϳϬϬĨĞĞƚĨƌŽŵƚŚĞƐƚŽƉŽŶϭϰǀĞ^t͕ƐŽƵƚŚŽĨϮ^ƚ^ǁĂŶĚĂĐƌŽƐƐĨƌŽŵ^ƚDĂƌLJ͛Ɛ ,ŽƐƉŝƚĂů͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϳ͕ϳ͕ϳE͕ϭϰ͕ϭϳ͕ĂŶĚϮϰ͘&ŝŶĂůůLJ͕ŝƚŝƐĂďŽƵƚϮϬϬϬĨĞĞƚǁĞƐƚŽĨ ƚŚĞƐƚŽƉĂƚ^ƚDĂƌLJ͛Ɛ,ŽƐƉŝƚĂůŽŶϮ^ƚ^t͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϭ͕ϭE͕ϰ͕ϲ͕ϳ͕ϳ͕ϳE͕ϴ͕ϵ ϭϮ͕ϭϮD͕ϭϮE͕ϭϰ͕ϭϱ͕ϭϳ͕ϭϴ͕ϭϵ͕Ϯϯ͕ĂŶĚϮϰ͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬĂƐƚZŝǀĞƌZĚEͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 +HDULQJV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< 3URJUDPRI3URMHFWV)HGHUDO7UDQVLW$VVLVWDQFH 7RQ\.QDXHU 7KLVLVDSXEOLFKHDULQJWRFRQVLGHUD3URJUDPRI3URMHFWVIRUWKHH[SHQGLWXUHRIIHGHUDOWUDQVLW DVVLVWDQFHIXQGV7KHDFWXDOH[SHQGLWXUHVDUHVWLOOVXEMHFWWR&RXQFLODSSURYDODQGZLOOEHUHYLHZHGDW YDULRXVSKDVHVDVWKHSURMHFWVDGYDQFH 7KHDWWDFKHGVXPPDU\VKRZVWKHDYDLODEOHIHGHUDOIXQGVDQGDGHVFULSWLRQRIKRZWKH&LW\LQWHQGVWR FRPPLWWKRVHIXQGV7KLVLVUHIHUUHGWRDVWKH³3URJUDPRI3URMHFWV´7KHSURMHFWVDUHFRQVLVWHQWZLWK WKH&LW\¶VDGRSWHG&DSLWDO,PSURYHPHQWV3URJUDPDQGEXGJHW52&2*¶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¶7UDQVSRUWDWLRQ,PSURYHPHQW3URJUDPVDVDPHQGHGWKH &LW\RI5RFKHVWHU¶V&DSLWDO,PSURYHPHQW3URJUDPDQGWKH6WDWHRI0LQQHVRWD¶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rial]]3ODQQLQJ6WDII5HYLHZDQG5HFRPPHQGDWLRQ [[1136,704,1149,756][11][B,I,][Arial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q 7KLVPDSSUHSDUHGE\WKH*,6'LYLVLRQ5RFKHVWHU2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW2OPVWHG&RXQW\LVQRWUHVSRQVLEOHIRU RPLVVLRQVRUHUURUVFRQWDLQHGKHUHLQ,IGLVFUHSDQFLHVDUHIRXQGZLWKLQWKLVPDSSOHDVHQRWLI\WKH*,6'LYLVLRQ5RFKHVWHU 3DFNHW3J 2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW&DPSXV'ULYH6(5RFKHVWHU01 )E 523' 2&+(67(5/067('/$11,1*(3$570(17 &DPSXV'ULYH6(6XLWH5RFKHVWHU01KDYHEHHQILOHG ZLWKWKH3ODQQLQJ'HSDUWPHQWE\UHIHUUDODJHQFLHVRUWKHJHQHUDOSXEOLF6WDIIUHFRPPHQGVDSSURYDOWRYDFDWHWKH HDVHPHQWDVSHWLWLRQHG xx %8,/',1*&2'( 3DFNHW3J )F )F 3DFNHW3J 3DFNHW3J )G 5HIHUUDO$JHQF\&RPPHQWV $SSOLFDWLRQ1R59$&3DUNVLGH3ODFH &RXQW\3XEOLF:RUNV )G )URP/DZ%U\DQ 7R3ODQQLQJ5HIHUUDOV 6XEMHFW5(5HTXHVWIRU&RPPHQWV59$& 'DWH0RQGD\-XO\30 dŚŝƐƐŝƚĞŝƐĚŝƌĞĐƚůLJƐĞƌǀĞĚďLJƚŚĞƌŽƵƚĞϴƐƚŽƉĂďŽƵƚϯϬϬĨĞĞƚĞĂƐƚŽĨƚŚĞƐŝƚĞ͘dŚĞƐŝƚĞŝƐĂůƐŽĂďŽƵƚ ϮϭϬϬĨĞĞƚĨƌŽŵƚŚĞƐƚŽƉĂƚϮ^ƚ^tĂŶĚϭϲǀĞ^t͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϭE͕ϴ͕ϭϮ͕ϭϮE͕ĂŶĚ Ϯϰ͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬĂƐƚZŝǀĞƌZĚEͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ 3DFNHW3J )G )URP6FKQHOO7UDF\ '27 7R3ODQQLQJ5HIHUUDOV &F6FKRHQIHOGHU0DUN '27 6FKQHOO7UDF\ '27 6XEMHFW9DFDWLRQ3HWLWLRQ59$&E\6HFRQG6WUHHW//& 'DWH0RQGD\-XO\$0 dŚŝƐƉƌŽƉŽƐĂůĂƉƉĞĂƌƐƚŽŚĂǀĞŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶDŶKdƌŽĂĚǁĂLJƐĂŶĚŝƐĂĐĐĞƉƚĂďůĞƚŽ DŶKd͘ sĂĐĂƚŝŽŶWĞƚŝƚŝŽŶηZϮϬϭϲͲϬϬϲsďLJϮϬϬϵ^ĞĐŽŶĚ^ƚƌĞĞƚ͕>>ƚŽǀĂĐĂƚĞĂƉŽƌƚŝŽŶŽĨĂƵƚŝůŝƚLJ ŶĚ ĞĂƐĞŵĞŶƚůŽĐĂƚĞĚĂƚϮϬϬϵϮ^ƚƌĞĞƚ^t͘ dŚĂŶŬLJŽƵ͕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q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³1R3DUNLQJ´ 8QGHUUHYLHZE\5RFKHVWHU3XEOLF:RUNV'HSDUWPHQW 8QGHUUHYLHZE\5RFKHVWHU3XEOLF:RUNV HORSPHQWDFWLYLW\IRUZKLFKDJHQHUDOGHYHORSPHQW [[443,2358,514,2415][12][,I,][Times New Roman]]SOD [[514,2358,2262,2415][12][,I,][Times New Roman]]QVXEGLYLVLRQSHUPLWRURWKHU7\SH,,,DSSURYDOKDVUHVXOWHGLQWKHUHYLHZRIWKH [[443,2415,2261,2472][12][,I,][Times New Roman]]SURSRVHGFXWDQGILOOZRUNDQGIRUZKLFKDJUDGLQJSHUPLWLVUHTXLUHG7RTXDOLI\IRUWKLV [[450,2473,2121,2530][12][,I,][Times New Roman]]H[HPSWLRQWKH&RXQFLOVKDOOKDYHPDGHWKHILQGLQJVHVWDEOLVKHGLQ6HFWLRQ [[2121,2473,2133,2530][12][,I,][Times New Roman]] [[2134,2473,2146,2530][12][,I,][Times New Roman]] ),1',1*61(&(66$5<)25,668$1&(2)&21',7,21$/86(3(50,76 7KH&LW\VKDOODSSURYHDFRQGLWLRQDOXVHSHUPLWDXWKRUL]LQJDQH[FDYDWLRQDFWLYLW\RQO\LIDOO RIWKHIROORZLQJILQGLQJVZLWKUHVSHFWWRWKHSURSRVHGDFWLYLW\DUHPDGHLQDGGLWLRQWRWKRVH OLVWHGLQ6HFWLRQ 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ 5HF\FOHGSDSHU x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±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x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x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x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J )F 53/$73DJH 7KHSODWVKDOOEHPRGLILHGWRLQFOXGHDPDLQWHQDQFHHDVHPHQWDURXQGWKHH[SDQGHGSRQG LQ2XWORW$ $77$&+0(176 6LWH/RFDWLRQ0DS )LQDO3ODW 6WDII5HSRUW $SSOLFDQW6XEPLWWDOV 5HIHUUDO&RPPHQWV 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ 5HF\FOHGSDSHU x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««««««««««««««««««« )H [[2036,655,2325,695][8][,I,][Arial Narrow]]7KHKDQGWRUHDFKIRU« [[2324,655,2332,695][8][,I,][Arial Narrow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dŚŝƐƐŝƚĞŝƐũƵƐƚůĞƐƐƚŚĂŶϭ͘ϱŵŝůĞƐĨƌŽŵƚŚĞZŽƵƚĞϳƐƚŽƉĂƚ'ƌĞĞŶǀŝĞǁWů^tĂŶĚ'ƌĞĞŶǀŝĞǁƌ^t͘ /ƚŝƐĂůƐŽĂďŽƵƚϭ͘ϮŵŝůĞƐĨƌŽŵƚŚĞZŽƵƚĞϭϰƐƚŽƉĂƚtĂƚĞƌĨŽƌĚWů^tĂŶĚĂŵďĞƌsĂůůĞLJZĚ^t͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬĂƐƚZŝǀĞƌZĚEͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ 3DFNHW3J )H )URP6FKQHOO7UDF\ '27 7R3ODQQLQJ5HIHUUDOV &F6FKRHQIHOGHU0DUN '27 6FKQHOO7UDF\ '27 6XEMHFW)LQDO3ODW53/$7WREHNQRZQDV5HIOHFWLRQVRQ0D\R/DNH6HFRQGE\:RRGFUHVW'HYHORSPHQW//& 'DWH0RQGD\-XO\30 dŚŝƐƉƌŽƉŽƐĂůĂƉƉĞĂƌƐƚŽŚĂǀĞŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶDŶKdƌŽĂĚǁĂLJƐĂŶĚŝƐĂĐĐĞƉƚĂďůĞƚŽ DŶKd͘ &ŝŶĂůWůĂƚηZϮϬϭϲͲϬϬϭW>dƚŽďĞŬŶŽǁŶĂƐZĞĨůĞĐƚŝŽŶƐŽŶDĂLJŽ>ĂŬĞ^ĞĐŽŶĚďLJtŽŽĚĐƌĞƐƚ ĞǀĞůŽƉŵĞŶƚ>>͘dŚĞƉůĂƚƉƌŽƉŽƐĞƐƚŽƐƵďĚŝǀŝĚĞϭϵůŽƚƐ͕ϰďůŽĐŬƐ͕ĂŶĚϴŽƵƚůŽƚƐĨŽƌƌĞƐŝĚĞŶƚŝĂů ĚĞǀĞůŽƉŵĞŶƚ͘dŚĞĂƉƉůŝĐĂŶƚŝƐĂůƐŽƌĞƋƵĞƐƚŝŶŐĂƉƉƌŽǀĂůŽĨĂ^ƵďƐƚĂŶƚŝĂů>ĂŶĚůƚĞƌĂƚŝŽŶƉĞƌŵŝƚƚŽ ĂůůŽǁĨŽƌŐƌĂĚŝŶŐƚŚĞĞdžĐĞĞĚƐϭϬĨĞĞƚŽĨĨŝůůŽƌĐƵƚŽŶƚŚĞƉƌŽƉĞƌƚLJ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨ ZϮϱ;^ĂůĞŵZĚ^tͿĂŶĚĞĂƐƚŽĨZϭϮϱ;DĂLJŽǁŽŽĚZŽĂĚ^tͿ͘ dŚĂŶŬLJŽƵ͕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q 7KLVPDSSUHSDUHGE\WKH*,6'LYLVLRQ5RFKHVWHU2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW2OPVWHG&RXQW\LVQRWUHVSRQVLEOHIRU RPLVVLRQVRUHUURUVFRQWDLQHGKHUHLQ,IGLVFUHSDQFLHVDUHIRXQGZLWKLQWKLVPDSSOHDVHQRWLI\WKH*,6'LYLVLRQ5RFKHVWHU 3DFNHW3J 2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW&DPSXV'ULYH6(5RFKHVWHU01 )F 52&+(67(52/067('3/$11,1*'(3$570(17 &DPSXV'ULYH6(6XLWH5RFKHVWHU01 )F 53/$76WRQHEURRNH7KLUG$GGLWLRQ3DJH 'HQVLW\5HVLGHQWLDO´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¶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x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x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J )G ($6(0(17 7+,6,1'(1785(PDGHWKLVBBBBBGD\RIBBBBBBBBBBBBBBBBBBBBBBE\DQGEHWZHHQ 6WRQHEURRNHRI5RFKHVWHU//& D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\KHUHLQDIWHUUHIHUUHGWRDV &LW\RI5RFKHVWHU &RQWUDFW9HQGHHDQGRU³*UDQWRU´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³&RQWUDFW9HQGRU´DQGD0LQQHVRWDOLPLWHG OLDELOLW\FRPSDQ\KHUHLQDIWHUUHIHUUHGWRDV³&RQWUDFW9HQGHH´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dŚŝƐƐŝƚĞŝƐƐĞƌǀĞĚďLJZŽƵƚĞϭϳ͕ǁŚŝĐŚƐƚŽƉƐĂƚ^ƵŶŶLJĚĂůĞ>Ŷ^ĂŶĚϰϬǀĞ^͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬĂƐƚZŝǀĞƌZĚEͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ 3DFNHW3J )I [[2036,655,2325,695][8][,I,][Arial Narrow]]7KHKDQGWRUHDFKIRU« [[2324,655,2332,695][8][,I,][Arial Narrow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´ KLJKRQFRQWUDVWLQJEDFNJURXQGZKHQORFDWHGRQWKHEXLOGLQJDQG´KLJKLIORFDWHGRQDUXUDOPDLO ER[DWWKHSXEOLFURDGIURQWLQJWKHSURSHUW\5HIOHFWLYHQXPEHUVDUHUHFRPPHQGHG 3DFNHW3J )I 52&+(67(53$5.$1'5(&5($7,21 '(3$570(17 5()(55$/&200(176)250 '$7( -XO\ 72 3ODQQLQJ'HSDUWPHQW UG 5( 6WRQHEURRNH$GGLWLRQ 53/$7ILQDO $FUHDJHRISODW«««««««««««««««««««DFUHV 1XPEHURIGZHOOLQJXQLWV««««««««««««««XQLWV 'HQVLW\IDFWRU«««««««««««««««««««« 'HGLFDWLRQ«««««««««««««««««««««DFUHV )DLUPDUNHWYDOXHRIODQG««««««««««««««« 3$5.'(',&$7,215(48,5(0(176 [[1094,1419,1107,1472][11][,I,][Arial]] x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x 6HZHU$YDLODELOLW\&KDUJH 6$& x :DWHU$YDLODELOLW\&KDUJH :$& x 7UDQVSRUWDWLRQ,PSURYHPHQW2EOLJDWLRQV x 3HGHVWULDQ)DFLOLWLHVDORQJDOOSXEOLFURDGIURQWDJHV x $3ODQW,QYHVWPHQW)HH 3,) FROOHFWHGDVSDUWRIWKH%XLOGLQJ3HUPLWDSSURYDO SURFHVVIRULQGLYLGXDOORWV 3?&20021?52:?3ODQQLQJ?3ODQQLQJ?)36WRQHEURRNHUGGRF 3DFNHW3J )I )URP6FKQHOO7UDF\ '27 7R3ODQQLQJ5HIHUUDOV &F6FKRHQIHOGHU0DUN '27 6FKQHOO7UDF\ '27 6XEMHFW)LQDO3ODW53/$7WREHNQRZQDV6WRQHEURRNH7KLUG$GGLWLRQ 'DWH0RQGD\-XO\30 dŚŝƐƉƌŽƉŽƐĂůĂƉƉĞĂƌƐƚŽŚĂǀĞŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶDŶKdƌŽĂĚǁĂLJƐĂŶĚŝƐĂĐĐĞƉƚĂďůĞƚŽ DŶKd͘ &ŝŶĂůWůĂƚηZϮϬϭϲͲϬϬϮW>dƚŽďĞŬŶŽǁŶĂƐ^ƚŽŶĞďƌŽŽŬĞdŚŝƌĚĚĚŝƚŝŽŶ͕ďLJ^ƚŽŶĞďƌŽŽŬĞŽĨ ZŽĐŚĞƐƚĞƌ͕>>͘dŚĞƉůĂƚƉƌŽƉŽƐĞƐƚŽƐƵďĚŝǀŝĚĞϮϬůŽƚƐ͕ϮďůŽĐŬƐ͕ĂŶĚϮŽƵƚůŽƚƐĨŽƌƌĞƐŝĚĞŶƚŝĂů ĚĞǀĞůŽƉŵĞŶƚ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨŽƵŶƚLJ^ƚĂƚĞŝĚ,ŝŐŚǁĂLJϵ;ŽůůĞŐĞsŝĞǁZŽĂĚͿ͕ ŶĚ ĂƐƚŽĨ^ƵŶŶLJĚĂůĞ>ĂŶĞ^ĂŶĚĂĚũĂĐĞŶƚƚŽ^ƚŽŶĞďƌŽŽŬĞϮƐƵďĚŝǀŝƐŝŽŶ͘ dŚĂŶŬLJŽƵ͕ 7UDF\6FKQHOO 7UDQVSRUWDWLRQ3ODQQHU 0Q'27'LVWULFW WK 6WUHHW1: 5RFKHVWHU01 ) 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('%< )LQDO3ODW53/$7WREHNQRZQDV1RUWK6XPPLWE\7+3URSHUWLHV 0DUN(QJHO //&7KHSODWSURSRVHVWRVXEGLYLGHORWVDQGRXWORWVRQDFUHV7KH SURSHUW\LVORFDWHGVRXWKRIWK6WUHHW1:DQG1RUWKRI1RUWK3DUNWK 6XEGLYLVLRQ 7KH3ODQQLQJ6WDIIKDVUHYLHZHGWKHVXEPLWWHGILQDOSODWLQDFFRUGDQFHZLWKWKH5RFKHVWHU=RQLQJ2UGLQDQFH DQG/DQG'HYHORSPHQW0DQXDO6HFWLRQDQGZRXOGUHFRPPHQGDSSURYDOVXEMHFWWRWKHIROORZLQJ FRQGLWLRQV *UDGLQJ 'UDLQDJH3ODQDSSURYDOLVUHTXLUHGSULRUWRUHFRUGLQJWKH)LQDO3ODW &RQVWUXFWLRQ3ODQ$SSURYDOLVDSSURYDOLVUHTXLUHGSULRUWRUHFRUGLQJWKH)LQDO3ODW &LW\&RXQFLODSSURYDORIWKH'HYHORSPHQW$JUHHPHQWLVUHTXLUHGSULRUWRUHFRUGLQJWKH)LQDO3ODW 3DUNGHGLFDWLRQUHTXLUHPHQWVPXVWEHPHWYLD&DVKLQOLHXRIODQGZLWKSD\PHQWGXHSULRUWRUHFRUGLQJ WKHILQDOSODW 0RGLI\WKHILQDOSODWWRLQFOXGHDURDGZD\ODEHORQWKHQRUWKZHVWVWUHHWVHJPHQWVWXEDWWKHLQWHUVHFWLRQRI )DLUZD\'ULYH1:DQG*HQHYLHYH/Q1:,WLVDQWLFLSDWHGWKDWWKHURDGZD\VHJPHQWZLOOEHQDPHG*HQHYLHYH 3O1:DQGMRLQWRWKHH[LVWLQJ*HQHYLHYH3O1:WKURXJKDIXWXUHSODW 0RGLI\WKHILQDOSODWWRFKDQJHWKHODEHOIRU³WK6WUHHW1:´WR³6WUHHW1:´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³1RUWK´ 6LQJOHIDPLO\GHWDFKHGKRPHVGHYHORSHGLQ2UFKDUG5LGJHVXEGLYLVLRQ DEXWWKHUHPDLQGHURIWKHHDVWVLGH$OOWKHVHODQGVDUH]RQHG5 0L[HG 6LQJOH)DPLO\ 5HVLGHQWLDO 6RXWK 7RWKHVRXWKDUHGHWDFKHGVLQJOHIDPLO\KRPHV]RQHG5 0L[HG 6LQJOH)DPLO\ ORFDWHGLQWKHODVWSODWVRIWKH1RUWK3DUNGHYHORSPHQW 'LVWULFW 1RUWK WK6WUHHW1:LVLGHQWLILHGDVD³0DMRU8UEDQ$UWHULDO´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x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³/RZ'HQVLW\5HVLGHQWLDO´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x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¶VFRQVXOWLQJHQJLQHHUVKDOO FRRUGLQDWHZLWK3XEOLF:RUNV6WDIIWRFRQILUPWKDWDOOUHTXLUHGSXEOLFHDVHPHQWV DUHLGHQWLILHGRQWKH)LQDO3ODWSULRUWRUHFRUGLQJ $QHDVWERXQGULJKWWXUQODQHDQGDZHVWERXQGE\SDVVODQHDUHUHTXLUHGDVSDUWRIWKH DSSURYDORIWKHSODW7KHUHTXLUHPHQWPXVWEHLQFOXGHGLQWKH'HYHORSPHQW$JUHHPHQW 6HHQXPEHUDERYH ([HFXWLRQRID&LW\2ZQHU&RQWUDFWZLOOEHUHTXLUHGSULRUWRFRQVWUXFWLRQRISXEOLF LQIUDVWUXFWXUHDVVRFLDWHGZLWKWKLVGHYHORSPHQW&RQVWUXFWLRQRISHGHVWULDQIDFLOLWLHVDORQJ WKHORWVLQ%ORFN DQG2XWORW%DEXWWLQJ6KHWODQG'U1:LVUHTXLUHGDVSDUWRIWKH $SSOLFDQWLVZRUNLQJZLWK&LW\RI &LW\2ZQHU&RQWUDFWSXEOLFLPSURYHPHQWV 5RFKHVWHU3XEOLF:RUNVRQ&LW\2ZQHU&RQWUDFWZKLFKLVUHTXLUHGSULRUWR UHFRUGLQJRIWKH)LQDO3ODW &RQVWUXFWLRQSODQDSSURYDOE\WKH&LW\IRUWKHSXEOLFVWUHHWDQGUHODWHGHOHPHQWV VWUHHW WUDIILFFRQWUROGHYLFHVVDQLWDU\VHZHUVVWRUPZDWHUIDFLOLWLHVZDWHUV\VWHPIDFLOLWLHV VLGHZDONVDQGRWKHULPSURYHPHQWVUHTXLUHG ZLOOEHUHTXLUHGSULRUWRUHFRUGLQJWKH)LQDO &RQVWUXFWLRQ3ODQDSSURYDOLVUHTXLUHGSULRUWRUHFRUGLQJWKH)LQDO3ODW 3ODW )F 53/$73DJH FRQILUPHGDVSDUWRIWKH&RQVWUXFWLRQ3ODQDSSURYDOSURFHVVZLWK&LW\RI5RFKHVWHU 3XEOLF:RUNV'HSDUWPHQW 7KHSURSRVHG³+DPPHUKHDG´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³6WUHHW1:´WR³6WUHHW1:´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x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J )F 53/$73DJH 0RGLI\WKHILQDOSODWWRLQFOXGHDURDGZD\ODEHORQWKHQRUWKZHVWVWUHHWVHJPHQWVWXEDWWKH LQWHUVHFWLRQRI)DLUZD\'ULYH1:DQG*HQHYLHYH/Q1:,WLVDQWLFLSDWHGWKDWWKHURDGZD\ VHJPHQWZLOOEHQDPHG*HQHYLHYH3O1:DQGMRLQWRWKHH[LVWLQJ*HQHYLHYH3O1:WKURXJKD IXWXUHSODW 0RGLI\WKHILQDOSODWWRFKDQJHWKHODEHOIRU³WK6WUHHW1:´WR³6WUHHW1:´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dŚĞĐůŽƐĞƐƚƚƌĂŶƐŝƚƐĞƌǀŝĐĞƚŽƚŚŝƐƐŝƚĞŝƐƚŚĞZŽƵƚĞϭϵƐƚŽƉĂƚ^ĂǀĂŶŶĂŚƌEtĂŶĚWŽƌƚƐŵŽƵƚŚƌ Et͕ĂďŽƵƚϭϵϬϬĨĞĞƚƚŽƚŚĞƐŽƵƚŚ͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬĂƐƚZŝǀĞƌZĚEͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ 3DFNHW3J )H [[2036,655,2325,695][8][,I,][Arial Narrow]]7KHKDQGWRUHDFKIRU« [[2324,655,2332,695][8][,I,][Arial Narrow]] '$7(-XO\ 72%HWK'DYLV3ODQQLQJ )5200LNH%MRUDNHU$VVLVWDQW)LUH0DUVKDO 68%-)LQDO3ODW53/$7WREHNQRZQDV1RUWK6XPPLWE\WK6WUHHW3URSHUWLHV //&7KH3ODWSURSRVHVWRVXEGLYLGHORWVHDQGOHJLEOHIURPWKHVWUHHWIURQWLQJWKHSURSHUW\1XPEHUVL]HPXVWEHDPLQLPXP´ KLJKRQFRQWUDVWLQJEDFNJURXQGZKHQORFDWHGRQWKHEXLOGLQJDQG´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dŚŝƐƉƌŽƉŽƐĂůĂƉƉĞĂƌƐƚŽŚĂǀĞŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶDŶKdƌŽĂĚǁĂLJƐĂŶĚŝƐĂĐĐĞƉƚĂďůĞƚŽ DŶKd͘ &ŝŶĂůWůĂƚηZϮϬϭϲͲϬϬϰW>dƚŽďĞŬŶŽǁŶĂƐEŽƌƚŚ^ƵŵŵŝƚďLJϲϱƚŚ^ƚƌĞĞƚWƌŽƉĞƌƚŝĞƐ͕>>͘dŚĞWůĂƚ ƉƌŽƉŽƐĞƐƚŽƐƵďĚŝǀŝĚĞϰϴůŽƚƐ͕ϳďůŽĐŬƐ͕ĂŶĚϯŽƵƚůŽƚƐŽŶϮϮ͘ϬϰĂĐƌĞƐĨŽƌƌĞƐŝĚĞŶƚŝĂůĚĞǀĞůŽƉŵĞŶƚ͘ ƚŚƚŚ dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨϲϱ^ƚƌĞĞƚEtĂŶĚŶŽƌƚŚŽĨEŽƌƚŚWĂƌŬϭϱ^ƵďĚŝǀŝƐŝŽŶ͘ dŚĂŶŬLJŽƵ͕ 7UDF\6FKQHOO 7UDQVSRUWDWLRQ3ODQQHU 0Q'27'LVWULFW WK 6WUHHW1: 5RFKHVWHU01 )H )URP+DUIRUG-RKQ 7R(QJHO0DUN &F'DYLV%HWK 6XEMHFW5H1RUWK6XPPLW6XEGLYLVLRQ 'DWH7XHVGD\-XO\ )H [[325,572,1856,603][7][,I,][Arial]]7KLVHPDLODQGDQ\ILOHVWUDQVPLWWHGZLWKLWLVFRQILGHQWLDODQGLVLQWHQGHGVROHO\IRUWKHXVHRIWKHDGGUHVVHH,I\RXDUHQRW [[325,606,1885,637][7][,I,][Arial]]WKHDGGUHVVHHSOHDVHGHOHWHWKLVHPDLOIURP\RXUV\VWHP$Q\XVHRIWKLVHPDLOE\XQLQWHQGHGUHFLSLHQWVLVVWULFWO\SURKLELWHG [[325,641,1849,672][7][,I,][Arial]]:6%GRHVQRWDFFHSWOLDELOLW\IRUDQ\HUURUVRURPLVVLRQVZKLFKDULVHDVDUHVXOWRIHOHFWURQLFWUDQVPLVVLRQ,IYHULILFDWLRQLV [[325,675,798,706][7][,I,][Arial]]UHTXLUHGSOHDVHUHTXHVWDKDUGFRS\ )URP+DUIRUG-RKQ>PDLOWRKDUIRUGMRKQ#&22/067('0186@ 6HQW)ULGD\-XO\ )H )URP/DQJHU6NLS15&6&'5RFKHVWHU01 7R+DUIRUG-RKQ(QJHO0DUN 6XEMHFW5(1RUWK6XPPLW6XEGLYLVLRQ 'DWH7XHVGD\-XO\30 ,ĞLJŐƵLJƐ͕ dŚĞƐŝƚĞĂĐƚƵĂůůLJŽŶůLJŵĞĞƚƐŽŶĞŽĨƚŚĞĚĞĨŝŶŝŶŐĐƌŝƚĞƌŝĂƚŽďĞĐŽŶƐŝĚĞƌĞĚĂǁĞƚůĂŶĚ͕ŝƚŶĞĞĚƐƚŽŵĞĞƚ ϯ͘dŚĞƐŝƚĞŝƐƚŝůĞĚǁŚŝĐŚŚĂƐƌĞŵŽǀĞĚƚŚĞŚLJĚƌŽůŽŐLJŶĞĞĚĞĚƚŽĚƌŝǀĞƚŚĞǁĞƚůĂŶĚ͕ƚŚĞƌĞĂƌĞŶŽ ŚLJĚƌŽƉŚLJƚŝĐƉůĂŶƚƐƉƌĞƐĞŶƚďƵƚƚŚĞƌĞŝƐŚŝƐƚŽƌŝĐŚLJĚƌŝĐƐŽŝůƐƉƌĞƐĞŶƚ͘,LJĚƌŝĐƐŽŝůĂůŽŶĞĐĂŶŶŽƚĚĞĨŝŶĞ ƚŚĞƐŝƚĞĂƐǁĞƚůĂŶĚ͕ŝƚǁŽƵůĚĂƚĂŵŝŶŝŵƵŵŶĞĞĚŚLJĚƌŽůŽŐLJĂŶĚƚŚĞŶŝĨƚŚĞǀĞŐĞƚĂƚŝŽŶǁĂƐĂůƚĞƌĞĚ͕ ďLJĨĂƌŵŝŶŐĨŽƌĞdžĂŵƉůĞ͕ǁĞĐŽƵůĚĂƐƐƵŵĞƚŚĂƚƚŚĞǀĞŐĞƚĂƚŝŽŶǁŽƵůĚƌĞƚƵƌŶŝĨƚŚĞĨĂƌŵŝŶŐŽƌŽƚŚĞƌ ƐŝƚĞĂůƚĞƌŝŶŐĂĐƚŝǀŝƚLJĐĞĂƐĞĚ͘ tĞĚŝĚĂƐŝƚĞǀŝƐŝƚĂŶĚĐŽŶĨŝƌŵĞĚƚŚĞƐŽŝůďƵƚŶĞŝƚŚĞƌŽĨƚŚĞŽƚŚĞƌϮǁĞƚůĂŶĚĐŚĂƌĂĐƚĞƌŝƐƚŝĐƐǁĞƌĞ ƉƌĞƐĞŶƚƚŽĚĞĨŝŶĞĂƐǁĞƚůĂŶĚ͘dŚĞƐŝƚĞŚĂƐďĞĞŶƌŽǁĐƌŽƉƉĞĚĨŽƌŵĂŶLJLJĞĂƌƐ͘dŚĞĐŽŶĨƵƐŝŽŶƚŚĂƚD' ĞƚƚƐŵĂLJŚĂǀĞĐƌĞĂƚĞĚǁĂƐƐŚŽǁŝŶŐƚŚĂƚƚŚĞƌĞŝƐĂǁĞƚůĂŶĚ;ŚŝƐƚŽƌŝĐĂůůLJͿďƵƚŶŽƚƐƚĂƚŝŶŐǁĞůů ĞŶŽƵŐŚƚŚĂƚŝƚĚŽĞƐŶΖƚĞdžŝƐƚĂŶLJŵŽƌĞƵŶĚĞƌƚŚĞũƵƌŝƐĚŝĐƚŝŽŶĂůĚĞĨŝŶŝƚŝŽŶ͘ dŚĞEŽ>ŽƐƐǁĂƐŝƐƐƵĞĚďĞĐĂƵƐĞƚŚĞƉƌŽũĞĐƚǁŝůůŶŽƚďĞŝŵƉĂĐƚŝŶŐĂǁĞƚůĂŶĚ͘ >ĞƚŵĞŬŶŽǁŝĨLJŽƵŚĂǀĞŽƚŚĞƌƋƵĞƐƚŝŽŶƐ͕ ^ŬŝƉ>ĂŶŐĞƌ KůŵƐƚĞĚ^t &ƌŽŵ͗ ,ĂƌĨŽƌĚ:ŽŚŶŵĂŝůƚŽ͗ŚĂƌĨŽƌĚ͘ũŽŚŶΛK͘K>D^d͘DE͘h^ ^ĞŶƚ͗ dƵĞƐĚĂLJ͕:ƵůLJϮϲ͕ϮϬϭϲϴ͗ϰϲD dŽ͗ >ĂŶŐĞƌ͕^ŬŝƉͲEZ^Ͳ͕ZŽĐŚĞƐƚĞƌ͕DEф^ŬŝƉ͘>ĂŶŐĞƌΛŵŶ͘ŶĂĐĚŶĞƚ͘ŶĞƚх ^ƵďũĞĐƚ͗ &ǁ͗EŽƌƚŚ^Ƶŵŵŝƚ^ƵďĚŝǀŝƐŝŽŶ ^ŬŝƉĐĂŶLJŽƵĐŽŶĨŝƌŵƚŚŝƐŝŶĨŽƌŵĂƚŝŽŶĨƌŽŵ>ƵŬĞ͍dŚĂŶŬƐ͘ :ŽŚŶ &ƌŽŵ͗ >ƵŬĞ>ƵŶĚĞф>>ƵŶĚĞΛǁƐďĞŶŐ͘ĐŽŵх ^ĞŶƚ͗ &ƌŝĚĂLJ͕:ƵůLJϮϮ͕ϮϬϭϲϭ͗ϯϵWD dŽ͗ ,ĂƌĨŽƌĚ:ŽŚŶ Đ͗ ŶŐĞůDĂƌŬ ^ƵďũĞĐƚ͗ Z͗EŽƌƚŚ^Ƶŵŵŝƚ^ƵďĚŝǀŝƐŝŽŶ ůƌĞĂĚLJĐŽǀĞƌĞĚƚŚƌŽƵŐŚ^ŬŝƉ>ĂŶŐĞƌĨƌŽŵKůŵƐƚĞĚŽƵŶƚLJĚƵĞƚŽƚŚĞƉƌŽƉĞƌƚLJĂƚƚŚĂƚƚŝŵĞŶŽƚ ĂŶŶĞdžĞĚŝŶƚŚĞŝƚLJ͘dŚĞƌĞƉŽƌƚĂŶĚƉĞƌŵŝƚƐƐƉĞĐŝĨLJƚŚĞƌĞĂƌĞŶŽũƵƌŝƐĚŝĐƚŝŽŶǁĞƚůĂŶĚƐŽŶƐŝƚĞ͘ 3DFNHW3J )H /XNH/XQGH 3URIHVVLRQDO6RLO6FLHQWLVW G )I )URP'DYLV%HWK 7R(QJHO0DUN 6XEMHFW):1RUWK6XPPLW 'DWH:HGQHVGD\-XO\ ) ) '(127(6,1&+%<,1&+5(%$56(7 '(127(6,1&+%<,1&+,5213,3( 6(7$1'0$5.('%</,&(16(12BBBGD\RIBBBBBBBBBBBBBBBBBBBBBBBBBB ODQGV PDWKHPDWLFDOO\ LQ DOO SODW RQ 6XUYH\RU DUH WKDW GHSLFWHG ZHW WKLV FHUWLILFDWH 8( 7KLVBBBBGD\RIBBBBBBBBBBBBBBBBBBBBBB VXUYH\ DQG (;,67 1 : WKDW /DQG ) )QWKH VLWH 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ 5HF\FOHGSDSHU x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J )UHSDUHGIRUH[HFXWLRQE\WKH2ZQHUDQG&LW\SULRU WRUHFRUGLQJWKH)LQDO3ODWWRDGGUHVVUHPDLQLQJREOLJDWLRQVDQGIHDWXUHVRIWKHFXUUHQW ±$)RXUWK SURSRVDOWKDWDUHLQFRQVLVWHQWZLWKWKHH[LVWLQJ'HYHORSPHQW$JUHHPHQW 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ 5HF\FOHGSDSHU x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J )DQFHZLWKWKHILUHFRGHDQGWKH=RQLQJ 2UGLQDQFHDQG/DQG'HYHORSPHQW0DQXDO(PHUJHQF\YHKLFOHDFFHVVURDGZD\VVKDOOEH VHUYLFHDEOHSULRUWRDQGGXULQJEXLOGLQJFRQVWUXFWLRQ D0LQLPXPVWUHHWZLGWKVKDOOQRWEHOHVVWKDQIHHWFOHDUGULYDEOHZLGWK E6WUHHWVOHVVWKDQIHHWLQZLGWKVKDOOEHSRVWHG³1R3DUNLQJ´RQRQHVLGHRIWKHVWUHHW 6WUHHWVOHVVWKDQIHHWLQZLGWKVKDOOEHSRVWHG³1R3DUNLQJ´RQERWKVLGHVRIWKH VWUHHW 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ 5HF\FOHGSDSHU x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J )IEUXVKWUHHVRUGHEULVWKDWZLOOEHFOHDUHGDVSDUWRIWKHVXEGLYLVLRQDFWLYLW\ 7KHDSSURYDODQGLVVXDQFHRIRSHQEXUQLQJSHUPLWVLQVLGHWKH5RFKHVWHU&LW\OLPLWVDUHWKH UHVSRQVLELOLW\RIWKH5RFKHVWHU)LUH0DUVKDO¶V2IILFH,IJHQHUDOGHYHORSPHQWSODQVIRUWKH GLVSRVDORIDQ\EUXVKDQGYHJHWDWLRQLQFOXGHEXUQLQJWKHPDWHULDOVRQVLWHFHUWDLQ HQYLURQPHQWDOKHDOWKDQGVDIHW\FRQFHUQVPD\SURKLELWWKHDFTXLVLWLRQRIDEXUQLQJSHUPLW IURPWKH5RFKHVWHU)LUH0DUVKDO¶V2IILFHDQGDQRWKHUPHWKRGRIGLVSRVDOPD\EHQHFHVVDU\ 'HYHORSPHQW5HYLHZ&RXQW\%XLOGLQJ:HOO6HSWLF3HUPLWWLQJ =RQLQJ 5HF\FOHGSDSHU x *HRJUDSKLF,QIRUPDWLRQ6\VWHPV$GGUHVVLQJ'DWD 0DSSLQJ/DQG8VH 7UDQVSRUWDWLRQ3ODQQLQJ3ROLF\ $QDO\VLV $1(48$/23325781,7<$)),50$7,9($&7,21(03/2<(5 UHF\FODEOH 3DFNHW3J ) ) ) ) ) ) )HSURSHUW\1XPEHUVL]HPXVWEHDPLQLPXP´ KLJKRQFRQWUDVWLQJEDFNJURXQGZKHQORFDWHGRQWKHEXLOGLQJDQG´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̺ EHRQWKHµKHDYLHU¶XVHVLGHDQGSODQWLQJVRQWKHµORZHU¶XVHVLGH 7KRXJKWKHFRPSDUDEOHSURMHFWLVDQLQFHQWLYHGHYHORSPHQWZLWKLQWKH5]RQLQJGLVWULFWWKHSURMHFWLV ZLWKLQWKH5GLVWULFW7KHUHIRUHIRXUERXOHYDUGWUHHVZLOOEHUHTXLUHGDORQJWKH&LW\¶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̺̺̺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o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¶VSURSHUW\ 1RWHVRQEXIIHU\DUGODQGVFDSLQJDQGERXOHYDUGWUHHSODQWLQJVSURSRVHG x 7KH5GLVWULFWZRXOGUHTXLUHIRXUERXOHYDUGWUHHVWKH5ZRXOGUHTXLUHVL[WUHHV)LYH UG ERXOHYDUGWUHHVDUHSURSRVHGDORQJ6WUHHW6:6LQFHWKHSURSHUW\LV]RQHG5IRXU ERXOHYDUGWUHHVZRXOGEHUHTXLUHG RQHIRUHYHU\IHHWRIIURQWDJH x 1REXIIHULQJZRXOGEHUHTXLUHGDORQJWKHQRUWKORWOLQHWKRXJKLWZRXOGEHHQFRXUDJHG7KH DSSOLFDQWKDVSURSRVHGSODQWLQJVDQGSDUWLDOIHQFLQJDORQJWKHQRUWK x 7KHDSSOLFDQWVKRZVDVL[IRRWIHQFHDORQJSRUWLRQVRIWKHZHVWDQGQRUWKORWOLQHV7KHIHQFH ZRXOGEHUHTXLUHGWREHRQWKHLQVLGHDQGSODQWVRQWKHRXWVLGHZKHUHWKHPXOWLIDPLO\XVHLV WKHµKHDYLHU¶XVH7KHIHQFHVKRXOGEHUHORFDWHGDVVXFKDORQJWKHZHVWVLGHDORQJUHVLGHQWLDO XVHV x %XIIHULQJZRXOGQRWEHUHTXLUHGDORQJWKHVRXWKDQGHDVWORWOLQHVRWKHUWKDQERXOHYDUGWUHHV DORQJWKHIURQWDJHRQWKHVRXWK7KHDSSOLFDQWKDVSURSRVHGSODQWLQJV x 5DWKHUWKDQOLVWWKHµ'¶VWDQGDUGRQWKHSODQ3ODQQLQJZRXOGUHFRPPHQGVWDWLQJWKHEXIIHULQJ VKDOOEHDVUHTXLUHGSHUDSSURYHGODQGVFDSLQJSODQLIWKH&RXQFLOLVVDWLVILHGZLWKWKH ODQGVFDSLQJSODQ7KHUHDVRQIRUWKLVLVWKDWWKHUHDUHVPDOOYDULDWLRQVEHWZHHQZKDWLVSURSRVHG DQGZKDWZRXOGEHUHTXLUHGE\WKHµ'¶EXIIHU\DUG7KHSURSRVDOKDVPRUHVKUXEVWKDQUHTXLUHG EXWIHZHUFDQRS\DQGXQGHUVWRU\WUHHV&RQIXVLRQVKRXOGEHDYRLGHG 7KH%XIIHU\DUG5HTXLUHPHQWVIRUDµ'¶6WDQGDUGEXIIHU\DUGRQ:HVWDQG1RUWKVLGH FRPSDUHWR DWWDFKHGDSSOLFDQW¶VODQGVFDSLQJSODQ :HVW6LGH1RUWK6LGH 5HTXLUHG5HTXLUHG /HQJWKRI<DUG )F 5&83)LQDO3ODQ3DJH $GGLWLRQDO1RWHV x 7KHDSSOLFDQWVXEPLWWHGSKRWRJUDSKVYHULI\LQJLQVWDOODWLRQRIDQHLJKERUKRRGQRWLILFDWLRQVLJQ x $QHLJKERUKRRGPHHWLQJZDVKHOGRQ7KXUVGD\0DUFKDQGWKRVHQRWHVVXEPLWWHGZLWKWKH 3UHOLPLQDU\3ODQ x 1HLJKERUKRRGFRPPHQWVZHUHVXEPLWWHGZLWKWKH3UHOLPLQDU\3ODQ =RQLQJ$QDO\VLVDQG&RPSDUDEOH'HYHORSPHQW 7KHUHTXLUHPHQWVLQ6HFWLRQĐŽŵƉůŝĞƐ tĞƐƚ ƐĞĞƉůĂŶĐŽŵƉůŝĞƐ ĞŶƐŝƚLJ͗ E dLJƉĞ/ EϯϮ͘ϲϳͬĂĐƌĞEE ϰϮ͘ϭϭ dLJƉĞ/// Eϰϯ͘ϱϲͬĂĐƌĞϰϭ͘ϴĐŽŵƉůŝĞƐ &Z͗ E dLJƉĞ/ EϬ͘ϳEE Ϭ͘ϵϮ dLJƉĞ/// EϬ͘ϵϮϬ͘ϵϮĐŽŵƉůŝĞƐ ϯϰ͘ϳйŽƌ >ĂŶĚƐĐĂƉĞй ϰϮйϯϬйϰϱйϭϬ͕ϰϬϲƐƋĨƚĐŽŵƉůŝĞƐ ϭϬй;Ϯ͕ϴϬϰϭϬ͘ϲй;ϯ͕ϭϴϭ ZĞĐƌĞĂƚŝŽŶ^ƉĂĐĞ ŶŽŶĞϵйƐƋ͘Ĩƚ͘ͿƐƋ͘Ĩƚ͘ͿĐŽŵƉůŝĞƐ ϯϴ͘ϳϱ͛ DĂdž,ĞŝŐŚƚƌĞƋƵŝƌĞĚ ϯϱĨĞĞƚŶŽŶĞϯϴΖͲϵΗ 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J )F 5&83)LQDO3ODQ3DJH KĨĨͲ^ƚƌĞĞƚWĂƌŬŝŶŐ͗ ϭϭ KŶĞĞĚƌŽŽŵƐ;ϭͿ ϭϭϭϭƐĞĞƚŽƚĂůĐŽŵƉůŝĞƐ Ϯϳ dǁŽĞĚƌŽŽŵƐ;ϭ͘ϱͿ ϮϳϮϳƐĞĞƚŽƚĂůĐŽŵƉůŝĞƐ ϯϴ dŽƚĂůWĂƌŬŝŶŐ ϯϴϯϴϯϵĐŽŵƉůŝĞƐ ŽŶͲƐƚƌĞĞƚ ^ƉŝůůŽǀĞƌWĂƌŬŝŶŐ ϲϲŽŶͲƐƚƌĞĞƚĐŽŵƉůŝĞƐ Ϯϵ͕ϵϵϱƐƋĨƚ DŝŶŝŵƵŵ>Žƚ^ŝnjĞ ϴ͕ϬϬϬƐƋĨƚϴ͕ϬϬϬƐƋĨƚϯϬ͕ϮϭϵƐƋĨƚĐŽŵƉůŝĞƐ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oDGHRQWKHQHLJKERUKRRG DSSHDUWKHDSSOLFDQWKDVDOWHUHGWKHVXEPLWWDOSHUWKLVFRPPHQW7KHDSSOLFDQW¶V ODQGVFDSLQJSODQGRHVLQFOXGHODQGVFDSLQJDORQJWKHVRXWKIDoDGH 7KHVLGHZDONVKRXOGEHH[WHQGHGWRWKHHQGRIWKHZHVWSURSHUW\OLQHWRFRQQHFWWRIXWXUH 7KHVLGHZDONKDVEHHQH[WHQGHG VLGHZDONFRQVWUXFWLRQ 3ODQQLQJVWDIIUHFRPPHQGVWKDWWKHIROORZLQJFRQGLWLRQVEHSODFHGRQWKHDSSURYDORIWKLV 5HVWULFWHG'HYHORSPHQW3UHOLPLQDU\3ODQ 7KHDSSOLFDQWVKDOOUHSODWWKHSURSHUWLHVLQWRRQHQHZORWSULRUWR)LQDO3ODQVXEPLWWDO7KH UG )LQDO3ODWVKDOOGHGLFDWHDGGLWLRQDOULJKWRIZD\DVSURSRVHGRQWKHVLWHSODQDORQJ6WUHHW 7KHDSSOLFDQWVXEPLW WHGD)LQDO3ODW,VVXHVZLWK0Q'27¶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¶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imes New Roman]]DSSOLFDQWPXVWFRPSO\SULRUWRLVVXDQFHRIEXLOGLQJSHUPLWV [[1585,1883,1597,1940][12][,,][Times New Roman]] *HRORJLF+D]DUG %[[774,1998,2185,2055][12][,I,][Times New Roman]]1RNQRZQJHRORJLFKD]DUGVH[LVWRQWKHVLWH7KH)LQDO3ODQFRPSOLHV [[2186,1998,2198,2055][12][,,][Times New Roman]] [[346,2112,359,2169][12][,I,][Arial]] [[375,2112,672,2169][12][B,,][Times New Roman]]$FFHVV(IIHFW [[300,2113,345,2170][12][,I,][Times New Roman]]& [[673,2113,697,2170][12][,,][Times New Roman]] [[698,2113,1190,2170][12][,I,][Times New Roman]]7KH)LQDO3ODQFRPSOLHV [[1192,2113,2160,2170][12][, I,][Times New Roman]]7KHUHTXLUHPHQWIRUDWUDIILFLPSDFWVWXG\ZDV [[1531,2164,1563,2204][8][,I,][Times New Roman]]UG [[2155,2164,2181,2204][8][,I,][Times New Roman]]WK [[374,2170,1530,2227][12][,I,][Times New Roman]]ZDLYHGE\WKH(QJLQHHU7KHSODQLGHQWLILHVDFFHVVIURP [[1561,2170,1573,2227][12][,I,][Times New Roman]] [[1573,2170,2154,2227][12][,I,][Times New Roman]]6WUHHW6:WKDWDOLJQVZLWK [[2181,2170,2193,2227][12][,I,][Times New Roman]] [[372,2228,2161,2285][12][,I,][Times New Roman]]$YHQXH6:7KHDFFHVVPHHWV/'0UHTXLUHPHQWVIRUDFFHVVPDQDJHPHQW GLVWDQFHIURP [[375,2285,961,2342][12][,I,][Times New Roman]]GULYHZD\VDQGLQWHUVHFWLRQV [[963,2285,975,2342][12][,I,][Times New Roman]] [[349,2399,362,2456][12][,I,][Arial]] [[375,2399,426,2456][12][B,,][Times New Roman]]3H [[427,2399,875,2456][12][B,,][Times New Roman]]GHVWULDQ&LUFXODWLRQ [[298,2400,347,2457][12][,I,][Times New Roman]]' [[877,2400,901,2457][12][,,][Times New Roman]] [[902,2400,2105,2457][12][,I,][Times New Roman]]7KHVLWHSODQLGHQWLILHVSHGHVWULDQFRQQHFWLRQVWRW KHSXEOLF [[375,2458,2256,2515][12][,I,][Times New Roman]]VLGHZDONDWWKUHHORFDWLRQV7KHDSSOLFDQWZLOOKDYHWRVHFXUH0Q'27DSSURYDOWRFRQQHFWWR [[375,2515,1989,2572][12][,I,][Times New Roman]]WKHVLGHZDONDORQJWKHIURQWDJHURDG3HGHVWULDQVFDQPRYHVDIHO\ZLWKLQDQGDF [[1990,2515,2240,2572][12][,I,][Times New Roman]]URVVWKHVLWH [[375,2573,2226,2630][12][,I,][Times New Roman]]DQGDGMDFHQWSURSHUWLHV7KHDSSOLFDQWKDVPRGLILHGWKH)LQDO6LWHSODQWRGUDZDWWHQWLRQWR [[375,2630,654,2687][12][,I,][Times New Roman]]WKHHQWUDQFHV [[655,2630,667,2687][12][,I,][Times New Roman]] )RXQGDWLRQDQG6LWH3ODQWLQJV ([[1060,2745,1198,2802][12][,I,][Times New Roman]]$ODQG [[1195,2745,1299,2802][12][,I,][Times New Roman]]VFDSL [[1301,2745,2185,2802][12][,I,][Times New Roman]]QJSODQKDVEHHQVXEPLWWHGWKDWVFU HHQVWKH [[375,2803,1591,2860][12][,I,][Times New Roman]]FRPPHUFLDOXVHVWRWKHQRUWKDQGVFUHHQVWKHSURSRVHGPXOWL [[1593,2803,1609,2860][12][,I,][Times New Roman]] [[1601,2803,2231,2860][12][,I,][Times New Roman]]IDPLO\XVHWRSURSHUWLHVRQWKH [[374,2860,696,2917][12][,I,][Times New Roman]]ZHVWDQGVRXWK [[698,2860,2138,2917][12][,I,][Times New Roman]]7KHDSSOLFDQWFDQQRWLQVWDOOSODQWLQJVRIIWKHLUSURSHUW\ZLWKRXWSURSHU [[368,2918,1006,2975][12][,I,][Times New Roman]]SHUPLVVLRQ7KHSODQWLQJVLGHQW [[1006,2918,2074,2975][12][,,][FEFBDFEE36C]]LILHGZLWKLQ0Q'27¶VSURSHUW\VKRXOGEHFRQVLGHUHG [[375,2975,624,3032][12][,I,][Times New Roman]]K\SRWKHWLFDO [[622,2975,634,3032][12][,I,][Times New Roman]] [[635,2975,2131,3032][12][,,][FEFBDFEE36C]]DQGDFRQGLWLRQRIDSSURYDOUHTXLUHV0Q'27¶VDQ G&LW\DSSURYDOSULRUWR LQVWDOODWLRQRISODQWLQJVRQ0Q'27¶VSURSHUW\ 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J )F 5&83)LQDO3ODQ3DJH 6LWH6WDWXV )[[643,233,1837,290][12][,I,][Times New Roman]]7KHVLWHLVUHDG\IRULPSURYHPHQWV7KHDSSOLFDQWKDVVXEP [[1838,233,2222,290][12][,I,][Times New Roman]]LWWHGDILQDOSODWWR [[375,291,2185,348][12][,I,][Times New Roman]]FRPELQHWKHSDUFHOVWKDWLVJRLQJWKURXJKWKHUHYLHZSURFHVV&RPSOHWLRQRIWKHILQDOSODW [[374,348,1450,405][12][,I,][Times New Roman]]ZLOOEHUHTXLUHGSULRUWRLVVXDQFHRIEXLOGLQJSHUPLWV [[1452,348,1464,405][12][,,][Times New Roman]] 6FUHHQLQJDQG%XIIHU\DUGV *[[992,463,2170,520][12][,I,][Times New Roman]]7KHODQGVFDSLQJSODQLGHQWLILHVVFUHHQLQJDQGEXIIHU\DUGV [[374,521,2201,578][12][,I,][Times New Roman]]ZKLFKZLOODGHTXDWHO\EXIIHUDQGVFUHHQWKHXVHIURPWKHVLQJOHIDPLO\GZHOOLQJWRWKHZHVW [[375,578,1174,635][12][,I,][Times New Roman]]DQGFRPPHUFLDOSURSHUWLHVWRWKHQRUWK [[1175,578,1187,635][12][,,][Times New Roman]] )LQDO%XLOGLQJ'HVLJQ +[[881,693,2174,750][12][,I,][Times New Roman]]7KHILQDOEXLOGLQJGHVLJQLVFRQVLVWHQWZLWKWKHSUHOLPLQDU\SODQ [[375,751,2183,808][12][,I,][Times New Roman]]DSSURYDO7KHDSSOLFDQWKDVPRGLILHGWKHHQWUDQFHVWRHQKDQFHWKHLUYLVLELOLW\DQGDFFHVV [[2185,751,2197,808][12][,,][Times New Roman]] ,QWHUQDO&LUFXODWLRQ$UHDV ,[[986,866,1059,923][12][,I,][Times New Roman]]2II [[1050,866,1066,923][12][,I,][Times New Roman]] [[1067,866,2165,923][12][,I,][Times New Roman]]VWUHHWSDUNLQJDUHDVFRPSO\ZLWK/'0VWDQGDUGV7 KH [[368,923,645,980][12][,I,][Times New Roman]]SURSRVDOPHH [[646,923,1760,980][12][,I,][Times New Roman]]WVWKH/'0UHTXLUHPHQWVIRUQXPEHURISDUNLQJVSDFHV [[1762,923,1774,980][12][,,][Times New Roman]] 2UGLQDQFH5HTXLUHPHQWV -[[957,1038,1523,1095][12][,I,][Times New Roman]]7KHSURSRVDOFRPSOLHVZLWK [[1524,1038,2255,1095][12][,I,][Times New Roman]]WKHUHTXLUHPHQWVRIWKH/'0H[FHSW [[375,1096,555,1153][12][,I,][Times New Roman]]VHWEDFNV [[557,1096,781,1153][12][,I,][Times New Roman]]DQGKHLJKW [[782,1096,1087,1153][12][,I,][Times New Roman]]DVQRWHGLQWKH [[1087,1096,1409,1 153][12][,I,][Times New Roman]]]RQLQJDQDO\VLV [[1410,1096,2002,1153][12][,I,][Times New Roman]]WDEOH7KHDSSOLFDQWUHTXHVWV [[375,1153,710,1210][12][,I,][Times New Roman]]PRGLILFDWLRQVWR [[712,1153,1030,1210][12][,I,][Times New Roman]]RUGLQDQFHUHTXL [[1032,1153,1189,1210][12][,I,][Times New Roman]]UHPHQWV [[1190,1153,1202,1210][12][,I,][Times New Roman]] [[1196,1153,2234,1210][12][,I,][Times New Roman]]SHU6HFWLRQ3][12][,I,][Times New Roman]] [[1651,1556,2252,1613][12][,I,][Times New Roman]]7KHEXLOGLQJLVDOVRZDONDEOH [[375,1613,2137,1670][12][,I,][Times New Roman]]WRFRPPHUFLDODQGHPSOR\PHQWORFDWLRQV7ZRSDUNVDUHZLWKLQZDONLQJGLVWDQFHWRWKH [[1811,1670,1823,1727][12][B,I,][Times New Roman]] [[1824,1670,1836,1727][12][B,I,][Times New Roman]] [[375,1671,1809,1728][12][,I,][Times New Roman]]QRUWKZHVW=XPEUR:HVW3DUNDQG&DVFDGH/DNH3DUNDQGWUDLOV\VWHP [[375,1728,387,1785][12][B,I,][Times New Roman]] [[336,1786,603,1843][12][B,I,][Times New Roman]]0RGLILFDWLRQ [[605,1786,624,1843][12][B,I,][Times New Roman]]V [[624,1786,640,1843][12][B,I,][Times New Roman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±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³8SWRZQ´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rial]]$Q\ODQGVFDSLQJRUFRQVWUXFWLRQFXUUHQWO\VKRZQLQWKH0Q'RWFRQWUROOHGULJKW [[1945,190,1960,243][11][,I,][Arial]] [[1961,190,2005,243][11][,I,][Arial]]RI [[1999,190,2014,243][11][,I,][Arial]] [[2014,190,2233,243][11][,I,][Arial]]ZD\DORQJ [[375,250,550,303][11][,I,][Arial]]WKHHDVW [[551,250,2201,303][11][,I,][Arial]]VLGHRIWKHSURSHUW\LVVXEMHFWWRDSSURYDOIURPWKHDSSURSULDWHUHSUHVHQWDWLYHVDW [[375,311,1585,364][11][,I,][Arial]]0Q'RWDQGWKH&LW\RI5RFKHVWHU3XEOLF:RUNV'HSDUWPHQW [[1585,311,1598,364][11][,I,][Arial]] 5(675,&7(''(9(/230(177<3(,,,±3+$6(,,,5(9,(:352&(66 %DVHGRQWKH]RQLQJUHTXLUHPHQWVIRU5HVWULFWHG'HYHORSPHQW6HFWLRQ8%/,&)$&,/,7<'(6,*1 x 7KHSULYDWHDQGSXEOLFXWLOLW\IDFLOLWLHVPHHWWKHUHTXLUHPHQWVDQGVSHFLILFDWLRQV RIWKHLUUHVSHFWLYHXWLOLWLHV x 2XUFLYLOHQJLQHHUKDVEHJXQWKHUHYLHZSURFHVVRIWKHJUDGLQJDQGGUDLQDJH SODQZLWK3XEOLF:RUNV x )LQDOSODQVIRUSXEOLFXWLOLW\VL]HVDQGORFDWLRQVZLOOEHFRRUGLQDWHGZLWK3XEOLF :RUNV x 3ULYDWHXWLOLWLHVWKDWDUHFXUUHQWO\ORFDWHGLQWKHERXOHYDUGWRWKHHDVWRIWKH SURMHFWVLWHZLOOEHPDLQWDLQHGDQGLQFRUSRUDWHGLQWKHFRQVWUXFWLRQDVUHTXLUHG E\HDFKRIWKHSULYDWHXWLOLW\FRPSDQLHV)LQDOGHWDLOVZLOOEHZRUNHGRXWZLWK HDFKXWLOLW\FRPSDQ\ x UG $QHZVLGHZDONZLOOEHDGGHGUXQQLQJZHVWWRHDVWDORQJ6WUHHW6:WR FRQQHFWWRWKHH[LVWLQJELWXPLQRXVWUDLODORQJWKH+Z\)URQWDJH5RDG %*(2/2*,&+$=$5'6 x 7KHUHDUHQRNQRZQDUHDVRIQDWXUDORUJHRORJLFDOKD]DUGVRQWKLVVLWH &$&&(66())(&7 WKDYHQXHQZURFKHVWHUPQ )H x WK 7KHXQGHUJURXQGSDUNLQJDFFHVVDOLJQVZLWK$YH6:ZKLFKZLOOPLQLPL]H DQ\WUDIILFFLUFXODWLRQSUREOHPV x 7KHORFDWLRQRIWKHGULYHZD\ZLOOQRWDGYHUVHO\LPSDFWDGMDFHQWSURSHUWLHVGXH WK WRLWVDOLJQPHQWZLWK$YH6: '3('(675,$1&,5&8/$7,21 x UG $QHZVLGHZDONZLOOEHFRQVWUXFWHGDORQJ6W6:FRQQHFWLQJWKHSHGHVWULDQ WUDLODORQJWKH+Z\)URQWDJH5RDGWRWKHZHVWSURSHUW\OLQH7KHUHDUHWZR PDLQHQWUDQFHVWRWKLVEXLOGLQJERWKRIZKLFKFRQQHFWWRWKHSXEOLFZD\7KH HDVWHQWUDQFHGLUHFWO\FRQQHFWVWRWKHSHGHVWULDQWUDLOWRDFFRPPRGDWHDQ\ UHVLGHQWVZDONLQJGRZQWRZQRUIURPWKH6DLQW0DU\VFDPSXV7KHHQWUDQFHDW WKHFRXUW\DUGDUHDSURYLGHVDQDFFHVVLEOHHQWUDQFHDWDVORSHDQG UG FRQQHFWVWRWKHQHZVLGHZDONDORQJ6W6: ()281'$7,21$1'6,7(3/$17,1*6 x $ODQGVFDSHSODQLVLQFOXGHGZLWKWKLVVXEPLWWDO/DQGVFDSLQJLVSURYLGHGRQDOO VLGHVRIWKHEXLOGLQJDQGLVFRQVLVWHQWZLWKERWKWKHDGMDFHQWFRPPHUFLDODQG UHVLGHQWLDODUHDV )6,7(67$786 x $)LQDO3ODWZLOOEHUHTXLUHGWRFRPELQHWKHH[LVWLQJWKUHHSURSHUWLHV7KLVZLOO RFFXUDORQJVLGHWKH)LQDO5HVWULFWHG'HYHORSPHQWUHYLHZ *6&5((1,1*$1'%8))(5<$5'6 x 7KHODQGVFDSHSODQVKRZVWKHUHTXLUHPHQWVIRUD7\SH'EXIIHU\DUGEHLQJPHW DWWKHZHVWSURSHUW\OLQH x 7KHIRXUVXUIDFHSDUNLQJVSDFHVDWWKHVRXWKZHVWFRUQHURIWKHVLWHZLOOEH VFUHHQHGIURPYLHZRIWKHDGMDFHQWUHVLGHQWLDOQHLJKERUKRRGYLDODQGVFDSLQJ +),1$/%8,/',1*'(6,*1 x 7KHILQDOEXLOGLQJGHVLJQLVFRQVLVWHQWZLWKWKH+HLJKW,PSDFW6HWEDFNVDQG ,QWHUQDO6LWH'HVLJQDVLGHQWLILHGLQWKHSUHOLPLQDU\GHYHORSPHQWSODQ x 7KHDSSOLFDQWZLOOVWLOOEHUHTXHVWLQJWKDWWKHQRUWKVRXWKDQGHDVWSURSHUW\ OLQHVEHPRGLILHGSHU6HFWLRQJHDWWKHWZRHQWUDQFHV7KLVVLJQDJHZLOO PHHWWKHUHTXLUHPHQWVRIWKHXQGHUO\LQJ]RQLQJGLVWULFW x 7KHSURSRVHGGHVLJQLVFRQVLVWHQWZLWKRWKHUDSSHDUDQFHFRQWUROVDQGJHQHUDO VWDQGDUGV .1219(+,&8/$5$1'$/7(51$7(75$9(/02'(6 WKDYHQXHQZURFKHVWHUPQ )H x 7KHSURSRVHGGHYHORSPHQWKDVGLUHFWSHGHVWULDQFRQQHFWLRQVWRSXEOLFZD\V UG DORQJWKH+Z\)URQWDJH5RDGDQG6W6:7KHVHDUHDVRISHGHVWULDQ DFWLYLW\ZLOOEHOLWIRUVDIHW\ x ([WHULRUELNHUDFNVDUHORFDWHGDORQJWKHVRXWKHUQHGJHRIWKHFRXUW\DUG%LNH UDFNVZLOODOVREHORFDWHGLQWKHXQGHUJURXQGSDUNLQJIDFLOLW\ =21,1*6800$5< x 6LWHDUHD6) DFUHV x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¶VSULPDU\FRQFHUQVXUURXQGV&ULWHULD'RI/DQG8VH 3ODQORFDWLRQDOFULWHULDIRU0HGLXP'HQVLW\5HVLGHQWLDO8VH7KLVVWDWHVVXFKXVHVVKDOOEH³%XIIHUHGIURPWKH DGYHUVHLQIOXHQFHVRIFRPPHUFLDOLQGXVWU LDODQGRWKHULQFRPSDWLEOHDFWLYLWLHV´7KHVLWHLVORFDWHGGLUHFWO\ DFURVVWKHVWUHHWIURPDKRXU.ZLN7ULS ZKLFKIXQFWLRQVDVDWUXFNVWRS 0F'RQDOG¶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± U H W V H K F R 5 3DFNHW3J )E L D P W R P V H N Q Q L 0 U H W V H K F R 5 Q R L V H L W Y 6 L ' 6 ( , *6 H W SY L H U ' ' V J X Q S L Q P Q D D & O 3 G H W V P W O Q 2 H P U H W W U V D H S K H F ' R 5 J Q L Q Q D O 3 G H W V P O 2 ± U H W V H K F R 5 3DFNHW3J )E L D P W R P V H N Q Q L 0 U H W V H K F R 5 Q R L V H L W Y 6 L ' 6 ( , *6 H W SY L H U ' ' V J X Q S L Q P Q D D & O 3 G H W V P W O Q 2 H P U H W W U V D H S K H F ' R 5 J Q L Q Q D O 3 G H W V P O 2 ±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¶ELNHDQGSHGHVWULDQSDWKWKDWUXQVDGMDFHQWWR &RPPHUFLDO'U6:DORQJWKHIURQWDJHRIWKHVLWH1RLQWHUQDOSDWKVRUVLGHZDONVDUHLGHQWLILHG $QH[LVWLQJVLGHZDONFRQQHFWVWKHVLWHWRDSDUNORFDWHGDSSUR[LPDWHO\óRIDPLOHWRWKHVRXWK DQGZHVW6LGHZDONH[LVWVDVZHOOWRWKHHDVWFRQQHFWLQJWKHVLWHIRUSHGHVWULDQVWRWKH6KRSSHV RQ0DLQHFRPPHUFLDOGHYHORSPHQW7KH6KRSSHVRQ0DLQHGHYHORSPHQWLVLQH[FHVVRIò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³0HGLXPGHQVLW\´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¶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±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¶VFRQQHFWLRQWRWK6WUHHW6: 6HFRQGDU\DFFHVVLVUHTXLUHGIRUSXEOLFVDIHW\SXUSRVHV7KH GHYHORSPHQWPD\QHHGWREHSKDVHGXQWLOVXFKWLPH&RPPHUFLDO 'U6:LVH[WHQGHGE\WKHDEXWWLQJ2ZQHUIURPWKHQRUWKOLQHRI WK :HVW(LJKW\WR6WUHHW6: $WDWUDIILFJHQHUDWLRQRI$'7XQLWWKHGHYHORSPHQWFRXOG FRQVWUXFWXQLWVEHIRUHVHFRQGDU\DFFHVVPXVWEHFRPSOHWHG 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J )G 5/83$5=&DQG5*'33DJH 8WLOLWLHVDUHQRZDYDLODEOHWRGLUHFWO\VHUYHWKHDUHDRIWKHSURSRVHG ODQGXVHRUWKDWWKH&LW\RI5RFKHVWHULVSODQQLQJIRUWKHH[WHQVLRQRI XWLOLWLHVWRVHUYHWKHDUHDRIWKHSURSRVHGGHYHORSPHQWDQGVXFK XWLOLWLHVDUHLQWKHILUVWWKUHH\HDUVRIWKH&LW\ <HDU&DSLWDO ,PSURYHPHQWV3URJUDPRUWKDWRWKHUDUUDQJHPHQWV FRQWUDFWXDO GHYHORSPHQWDJUHHPHQWSHUIRUPDQFHERQGHWF KDYHEHHQPDGHWR HQVXUHWKDWDGHTXDWHXWLOLWLHVZLOOEHDYDLODEOHFRQFXUUHQWO\ZLWK GHYHORSPHQW,IQHHGHGXWLOLWLHVZLOOQRWEHDYDLODEOHFRQFXUUHQWZLWK WKHSURSRVHGGHYHORSPHQWWKHDSSOLFDQWIRUWKHGHYHORSPHQWDSSURYDO PXVWVWLSXODWHWRDFRQGLWLRQWKDWQRGHYHORSPHQWZLOORFFXUDQGQR IXUWKHUGHYHORSPHQWSHUPLWZLOOEHLVVXHGXQWLOFRQFXUUHQF\KDVEHHQ 7KHUHLVDQH[LVWLQJ'HYHORSPHQW$JUHHPHQWDQG HYLGHQFHG PXOWLSOH6XSSOHPHQWDO$JUHHPHQWVIRUWKLV3URSHUW\7KHFXUUHQW SURSRVDOYDULHVIURPWKHGHYHORSPHQWSODQDQGXVHVEHLQJ FRQVLGHUHGDWWKHWLPHWKHH[LVWLQJ$JUHHPHQWVZHUHH[HFXWHGDQG LVLQFRQVLVWHQWZLWKFHUWDLQWHUPV7RDGGUHVVWKHDGHTXDF\RI SXEOLFIDFLOLWLHVIRUWKHFXUUHQWSURSRVDOD6XSSOHPHQWDO $JUHHPHQWVKRXOGEHUHTXLUHGWRDGGUHVVDQ\LQFRQVLVWHQFLHVIURP WKHH[LVWLQJDJUHHPHQWVXFKWKHQHHGIRUSDUNODQGGHGLFDWLRQDQG 2ZQHU¶VREOLJDWLRQVUHODWHGWRH[WHQVLRQRI&RPPHUFLDO'U6:IRU DVHFRQGDU\DFFHVV7KH2ZQHU¶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¶VREOLJDWLRQVUHODWHGWRH[WHQVLR QRI&RPPHUFLDO'U6:IRUDVHFRQGDU\ DFFHVV7KH2ZQHU¶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rial]]$ [[377,1409,389,1457][10][,I,][Arial]] [[388,1409,536,1457][10][,I,][Arial]]0HGLXP [[536,1409,550,1457][10][,I,][Arial]] [[550,1409,1742,1457][10][,I,][Ari al]]GHQVLW\UHVLGHQWLDOXVHVDUHPRVWVXLWDEOHLQWKHDUHDVZLWKWKHIR [[1743,1409,2159,1457][10][,I,][Arial]]OORZLQJFKDUDFWHULVWLFV [[2159,1409,2171,1457][10][,I,][Arial]] [[300,1459,312,1507][10][,I,][Arial]] [[300,1509,336,1557][10][,I,][Arial]]D [[337,1509,349,1557][10][,I,][Arial]] [[375,1509,2204,1557][10][,I,][Arial]]+DYLQJOHYHOWRIDLUO\UROOLQJWHUUDLQRXWVLGHIORRGSURQHRUSRRUO\GUDLQHGDUHDVRUDUHDVZLWKVWHHS [[375,1559,507,1607][10][,I,][Arial]]VORSHV [[507,1559,519,1607][10][,I,][Arial]] 7KLVVLWHZDVRULJLQDOO\PDVVJUDGHGLQFRQVLGHUVPRGHUDWHVORSHVLQWKHUDQJHRI WRDQGWKLVVLWHLVJHQHUDOO\XQGHUWKDWWKUHVKROG7KLVVLWHLVRXWVLGHWKH\HDUIORRGSODLQDQG WKHUHDUHQRSRRUO\GUDLQHGDUHDVRQWKHSURSHUW\7KHUHDUHQRH[LVWLQJZHWODQGVRQWKHSURSHUW\ [[300,2059,336,2107][10][,I,][Arial]]E [[337,2059,349,2107][10][,I,][Arial]] [[375,2059,2226,2107][10][,I,][Arial]],QFORVHSUR[LPLW\WRFRPPHUFLDODUHDVHPSOR\PHQWFHQWHUVUHFUHDWLRQDUHDVRURWKHUIDFLOLWLHVWKDW [[375,2109,859,2157][10][,I,][Arial]]VHUYHVPDOOHUKRXVHKROGV [[859,2109,871,2157][10][,I,][Arial]] 7KLVVLWHLVORFDWHGGLUHFWO\DFURVVWKHVWUHHW &RPPHUFLDO'ULYH6: IURPWKHH[LVWLQJ:HVW(LJKW\ FRPPHUFLDOGHYHORSPHQW .ZLN7ULS0F'RQDOGV'LVFRXQW7LUHV 7KHUHLVDOVRDYHU\ODUJHFRPPHUFLDO GHYHORSPHQWOHVVWKDQDKDOIPLOHWRWKHHDVWRIWKLVVLWHQDPHG6KRSSHV2Q0DLQH0DQ\EXVLQHVVHV ZLWKLQWKLV6KRSSHV2Q0DLQHGHYHORSPHQWWKDWVHUYHVPDOOHUKRXVHKROGVDUH/RZHV7DUJHW :HKUHQEHUJ7KHDWHUV6XEZD\DQG)DW:LOO\¶V UHVWDXUDQW [[300,2509,334,2557][10][,I,][Arial]]F [[335,2509,347,2557][10][,I,][Arial]] [[375,2509,1514,2557][10][,I,][Arial]]+DYLQJJRRGDFFHVVE\PHDQVRIFROOHFWRUDUWHULDODQGH[SUH [[1515,2509,2196,2557][10][,I,][Arial]]VVZD\VWUHHWVDQGWU DQVLWV\VWHPVWR [[375,2560,1579,2608][10][,I,][Arial]]HPSOR\PHQWFHQWHUVFRPPHUFLDODUHDVDQGFRPPXQLW\IDFLOLWLHV [[1579,2560,1591,2608][10][,I,][Arial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rial]]G [[337,495,349,543][10][,I,][Arial]] [[375,495,868,543][10][,I,][Arial]]%XIIHUHGIURPWKHDGYHUVH [[868,495,2144,543][10][,I,][Arial]]LQIOXHQFHVRIFRPPHUFLDOLQGXVWULDODQGRWKHULQFRPSDWLEOHDF WLYLWLHV [[2145,495,2157,543][10][,I,][Arial]] WKWK 7RWKHVRXWKRIWKHVLWHLVWKHH[LVWLQJ6WUHHW6:7RWKHVRXWKRI6WUHHW6:LVH[LVWLQJ5 GHYHORSPHQW7RWKHHDVWRIWKHVLWHLVWKHH[LVWLQJ&RPPHUFLDO'ULYH6:ZKLFKKDVDZLGH¶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rial]]6XEGLYLVLRQ7KH&RPPLVVLRQVKDOOU [[1007,1242,2225,1290][10][,I,][Arial]]HFRPPHQGIRUDSSURYDODQGWKH&RXQFLOVKDOODSSURYHDUHTXHVW [[300,1293,2125,1341][10][,I,][Arial]]WRDPHQGWKH]RQLQJPDSRUWKHWH[WRIWKH]RQLQJRUGLQDQFHLIWKHDPHQGPHQWVDWLVILHVWKHFULWHULD [[300,1343,735,1391][10][,I,][Arial]]SURYLGHGLQWKLVVHFWLRQ [[736,1343,748,1391][10][,I,][Arial]] [[300,1393,312,1441][10][,I,][Arial]] [[300,1443,399,1491][10][,I,][Arial]]6XEG [[398,1443,513,1491][10][,I,][Arial]]LYLVLRQ [[513,1443,525,1491][10][,I,][Arial]] [[525,1443,1461,1491][10][,I,][Arial]]7KHFULWHULDRIWKLVVXEGLYLVLRQ DSSO\WRWKRVHDP [[1460,1443,1895,1491][10][,I,][Arial]]HQGPHQWVWRWKH]RQLQJ [[1894,1443,1906,1491][10][,I,][Arial]] [[1905,1443,2141,1491][10][,I,][Arial]]PDSILOHGE\ [[300,1493,585,1541][10][,I,][Arial]]IRUPDOSHWLWLRQ [[584,1493,1709,1541][10][,I,][Arial]]$QDPHQGPHQWQHHGRQO\VDWLVI\RQHRIWKHIROORZLQJFULWHULD [[1708,1493,1720,1541][10][,I,][Arial]] [[375,1590,420,1643][11][,I,][Arial]]' [[421,1590,434,1643][11][,I,][Arial]] [[450,1590,451,1644][10][,,][FEF26E864DA]] [[460,1594,2260,1642][10][,I,][Arial]]7KHDUHDKDVFKDQJHGRULVFKDQJLQJWRVXFKDGHJUHHWKDWLWLVLQWKHSXEOLFLQWHUHVWWRUH]RQHVR [[1544,1649,1557,1702][11][,I,][Arial]] [[1556,1649,1569,1702][11][,I,][Arial]] [[450,1653,1216,1701][10][,I,][Arial]]DVWRHQFRXUDJHGHYHORSPHQWRIUHGHYHOR [[1217,1653,1543,1701][10][,I,][Arial]]SPHQWRIWKHDUHD /RWV%ORFNRIWKH:HVW'HYHORSPHQWKDYHEHHQIRUVDOHDQGDGYHUWLVHGDVYDFDQWJUDVV FRPPHUFLDOORWVVLQFH,2512,2228,2560][10][,I,][Arial]]=RQLQJLQYROYHVWKHFODVVLILFDWLRQ [[450,2567,2252,2615][10][,I,][Arial]]RIDVLQJOHORWRUVHYHUDOVPDOOORWVWRDGLVWULFWZKLFKLVGLIIHUHQWWKDQWKDWDVVLJQHGWRVXUURXQGLQJ [[450,2622,2108,2670][10][,I,][Arial]]SURSHUWLHVIRUUHDVRQVLQFRQVLVWHQWZLWKWKHSURSRVHVVHWIRUWKLQWKLVRUGLQDQFHWKHVWDWH [[450,2677,827,2725][10][,I,][Arial]]HQDEOLQJOHJLVODWLRQ [[828,2677,1538,2725][10][,I,][Arial]]RUWKHGHFLVLRQVRIFRXUWVLQWKLVVWDWH [[1539,2677,1551,2725][10][,I,][Arial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rial]]6XEGLYLVLRQ [[571,545,1682,593][10][,I,][Arial]]7KHFULWHULDRIWKLVVXEGLYLVLRQDSSO\WRDQDPHQGPHQWWRWKH [[1683,545,1695,593][10][,I,][Arial]] [[1694,545,2243,593][10][,I,][Arial]]WH[WRIWKH=RQLQJ2UGLQDQFH [[299,595,1305,643][10][,I,][Arial]]$QDPHQGPHQWPXVWVDWLVI\DOORIWKHIROORZLQJFULWHULD [[1305,595,1317,643][10][,I,][Arial]] [[300,645,312,693][10][,I,][Arial]] [[374,693,414,741][10][,I,][Arial]]$ [[414,693,426,741][10][,I,][Arial]] [[450,693,1027,741][10][,I,][Arial]]:KHWKHUWKHUHLVDSXEOLFQHHG [[1027,693,1388,741][10][,I,][Arial]]IRUWKHDPHQGPHQW [[1388,693,1400,741][10][,I,][Arial]] [[375,748,414,796][10][,I,][Arial]]% [[414,748,426,796][10][,I,][Arial]] [[450,748,2143,796][10][,I,][Arial]]:KHWKHUWKHDPHQGPHQWZLOODFFRPSOLVKRQHRUPRUHRIWKHSXUSRVHVRIWKLVRUGLQDQFHWKH [[450,803,2006,851][10][,I,][Arial]]&RPSUHKHQVLYH3ODQRURWKHUDGRSWHGSODQVRUSROLFLHVRIWKH&LW\RI5RFKHVWHUDQG [[2004,803,2016,851][10][,I,][Arial]] [[375,858,416,906][10][,I,][Arial]]& [[417,858,429,906][10][,I,][Arial]] [[450,858,1383,906][10][,I,][Arial]]:KHWKHUDGRSWLRQRIWKHDPHQGPHQWZLOOEHODZIXO [[1383,858,1395,906][10][,I,][Arial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rial]]% [[339,2414,351,2462][10][,I,][Arial]] [[375,2414,2257,2462][10][,I,][Arial]]6WRUPGUDLQDJHSUREOHPVZKLFKLQWKHHVWLPDWLRQRIWKHDSSOLFDQWPD\UHVXOWLQF RVWVWKDWZLOOH[FHHG [[375,2462,923,2510][10][,I,][Arial]]QRUPDOVWRUPGUDLQDJHFRVWV [[924,2462,936,2510][10][,I,][Arial]] 7KHVWRUPGUDLQDJHGRHVQRWDSSHDUWRFDXVHSUREOHPVWKDWZLOOUHVXOWLQWKHLQFUHDVHRIQRUPDOFRVWV 7KLVVLWHZLOOXWLOL]HWKHH[LVWLQJ&LW\5HJLRQDOVWRUPZDWHUSRQGVORFDWHGLQWKHVRXWKZHVWFRUQHUDQG QRUWKHDVWFRUQHURIWKHRYHUDOOGHYHORSPHQWWRPDQDJHWKHPDMRULW\RIWKHVWRUPZDWHUIURPWKHSURSRVHG PXOWLIDPLO\UHVLGHQWLDOGHYHORSPHQW,QDGGLWLRQWKHGHYHORSHUSODQVWRLQVWDOODQH[WHQVLYHDPRXQWRI ODQGVFDSLQJDQGLQFRUSRUDWHUDLQJDUGHQ V LIQHHGHG [[300,2852,341,2900][10][,I,][Arial]]& [[342,2852,354,2900][10][,I,][Arial]] [[375,2852,794,2900][10][,I,][Arial]],GHQWLILFDWLRQRISRWHQWL [[792,2852,888,2900][10][,I,][Arial]]DORII [[882,2852,896,2900][10][,I,][Arial]] [[896,2852,1328,2900][10][,I,][Arial]]VLWHGUDLQDJHSUREOHPV [[1329,2852,1341,2899][10][,,][Arial]] (QJLQHHUV_$UFKLWHFWV_3ODQQHUV_6FLHQWLVWV 6KRUW(OOLRWW+HQGULFNVRQ,QF )H 0D\ 3DJH 7KHDSSOLFDQWLQWHQGVWRSDUWLFLSDWHLQWKH&LW\¶V5HJLRQDO6WRUP:DWHU0DQDJHPHQW3ODQRULQFRUSRUDWH UDLQJDUGHQ V IRUWKHDUHDVWKDWGRQRWGUDLQWRDQH[LVWLQJIDFLOLW\7ZRUHJLRQDOSRQGVKDYHEHHQ FRPSOHWHGLQWKHVRXWKZHVWDQGQRUWKHDVWFRUQHUVRIWKHRYHUDOO:HVW'HYHORSPHQW/RW¶V%ORFN ZHUHRULJLQDOO\GHVLJQHGWRIORZWRWKHVHWRH[LVWLQJFLW\UHJLRQDOSRQGV [[300,593,341,641][10][,I,][Arial]]' [[342,593,354,641][10][,I,][Arial]] [[374,593,1482,641][10][,I,][Arial]]$YDLODELOLW\RIXWLOLWLHVWRVHUYHWKHDUHDXQGHUFRQVLGHUDWLRQ [[1482,593,1494,640][1 0][,,][Arial]] 6DQLWDU\VHZHUDQGZDWHUVHUYLFHKDYHDOUHDG\EHHQLQVWDOOHGWRHDFKRIWKHH[LVWLQJORWVLQWKLV:HVW 'HYHORSPHQW [[300,839,339,887][10][,I,][Arial]]( [[339,839,351,887][10][,I,][Arial]] [[375,839,1227,887][10][,I,][Arial]],GHQWLILFDWLRQRISRVVLEOHHURVLRQSUREOHPVZKL [[1225,839,1550,887][10][,I,][Arial]]FK PD\DULVHLQWK [[1552,839,2082,887][10][,I,][Arial]]HHVWLPDWLRQRIWKHDSSOLFDQW [[2082,839,2094,887][10][,I,][Arial]] (URVLRQFRQWUROPHDVXUHVZLOOEHLQFRUSRUDWHGLQWRWKHJUDGLQJSODQGXULQJILQDOGHVLJQ%DVHGRQRXU H[SHULHQFHZLWKWKH:HVW'HYHORSPHQWDQGWKHIDFWWKDWWKHUHDUHH[LVWLQJGUDLQDJHVZDOHVDQG6WRUP :DWHU7UHDWPHQW3RQGVLQSODFHZHGRQRWDQWLFLSDWHDQ\HURVLRQSUREOHPV [[300,1136,337,1184][10][,I,][Arial]]) [[337,1136,349,1184][10][,I,][Arial]] [[374,1136,2219,1184][10][,I,][Arial]]$JHQHUDOVWDWHPHQWDVWRWKHSRVVLEOHSKDVLQJRIDQ\GHYHORSPHQWDFWLYLW\WRRFFX URQWKHSURSHUW\ [[375,1191,1005,1239][10][,I,][Arial]]XQGHUWKHFRQWURORIWKHDSSOLFDQW [[1005,1191,1017,1239][10][,I,][Arial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ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵůLJϭϯ͕ϮϬϭϲ ϯ͘KŶƚŚĞƐŝƚĞĂŶĚůĂŶĚƐĐĂƉŝŶŐƉůĂŶƐ͕ƚŚĞƐŝdžĨŽŽƚĨĞŶĐĞƐŚŽƵůĚďĞƌĞůŽĐĂƚĞĚƐŽƚŚĂƚƚŚĞĨĞŶĐĞŝƐ ďĞƚǁĞĞŶƚŚĞŵƵůƚŝ Ͳ ĨĂŵŝůLJƵƐĞĂŶĚƉůĂŶƚŝŶŐƐŽŶƚŚŽƐĞĂƌĞĂƐĂĚũĂĐĞŶƚƚŽƚŚĞǁĞƐƚƐŝĚĞƌĞƐŝĚĞŶƚŝĂů ƵƐĞ͘dŚĞĨĞŶĐĞƐŚŽƵůĚďĞŽŶƚŚĞ͚ŚĞĂǀŝĞƌ͛ƵƐĞƐŝĚĞĂŶĚƉůĂŶƚŝŶŐƐŽŶƚŚĞ͚ůŽǁĞƌ͛ƵƐĞƐŝĚĞ͘ ϰ͘dŚŽƵŐŚƚŚĞĐŽŵƉĂƌĂďůĞƉƌŽũĞĐƚŝƐĂŶŝŶĐĞŶƚŝǀĞĚĞǀĞůŽƉŵĞŶƚǁŝƚŚŝŶƚŚĞZ Ͳ ϯnjŽŶŝŶŐĚŝƐƚƌŝĐƚ͕ƚŚĞ ƉƌŽũĞĐƚŝƐǁŝƚŚŝŶƚŚĞZ Ͳ ϮĚŝƐƚƌŝĐƚ͘dŚĞƌĞĨŽƌĞ͕ĨŽƵƌďŽƵůĞǀĂƌĚƚƌĞĞƐǁŝůůďĞƌĞƋƵŝƌĞĚĂůŽŶŐƚŚĞŝƚLJ͛Ɛ ZKt͘ ϱ͘ŶLJƉƌŽƉŽƐĞĚƉƌŝǀĂƚĞĨĞĂƚƵƌĞƐǁŝƚŚŝŶƚŚĞd,ϱϮtĞƐƚ&ƌŽŶƚĂŐĞZŽĂĚZKtǁŝůůƌĞƋƵŝƌĞŝƚLJĂŶĚͬŽƌ DŶKdĂƉƉƌŽǀĂů͘dŚĞƉƌŽƉŽƐĞĚůĂŶĚƐĐĂƉŝŶŐǁŝƚŚŝŶƚŚĞZKtƐŚŽƵůĚďĞǀŝĞǁĞĚĂƐĐŽŶĐĞƉƚƵĂůƵŶƚŝů ĂƉƉƌŽǀĞĚďLJƚŚĞƌŽĂĚĂƵƚŚŽƌŝƚLJ͘ŶLJůĂŶĚƐĐĂƉŝŶŐŽƌĐŽŶƐƚƌƵĐƚŝŽŶĐƵƌƌĞŶƚůLJƐŚŽǁŶŝŶƚŚĞDŶKd ĐŽŶƚƌŽůůĞĚZKtĂůŽŶŐƚŚĞĞĂƐƚƐŝĚĞŽĨƚŚĞƉƌŽƉĞƌƚLJŝƐƐƵďũĞĐƚƚŽĂƉƉƌŽǀĂůĨƌŽŵƚŚĞĂƉƉƌŽƉƌŝĂƚĞ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐĂƚDŶKdĂŶĚƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌWƵďůŝĐtŽƌŬƐ͘ƉƉƌŽǀĂůŝƐƌĞƋƵŝƌĞĚŝŶǁƌŝƚŝŶŐ ƉƌŝŽƌƚŽŝƐƐƵĂŶĐĞŽĨďƵŝůĚŝŶŐƉĞƌŵŝƚƐ͗ Ă͘DŝƐĐĞůůĂŶĞŽƵƐtŽƌŬWĞƌŵŝƚƉƉůŝĐĂƚŝŽŶďLJƚŚĞŝƚLJŝƐŶĞĞĚĞĚĨŽƌƚƌĞĞƐŝŶƚŚĞZKtĂŶĚ ǁŝůůďĞĐŽŶƐŝĚĞƌĞĚĂŶĂĚĚĞŶĚƵŵƚŽDŶKdWĞƌŵŝƚϲͲ h^Ͳ ϮϬϬϴ Ͳ ϮϭϱϱϬ͕d,ϱϮŽƌƌŝĚŽƌ >ĂŶĚƐĐĂƉŝŶŐ͘ ď͘ƐŝĚĞǁĂůŬĐŽŶŶĞĐƚŝŽŶǁŝůůƌĞƋƵŝƌĞĂDŶKdĐĐĞƐƐWĞƌŵŝƚďLJƚŚĞĞǀĞůŽƉĞƌǁŝƚŚĞdžŝƐƚŝŶŐ ĂĐĐĞƐƐĐŽŶƚƌŽůĂƚƚŚĞZKt͘ ϲ͘DŶKdƌĂŝŶĂŐĞWĞƌŵŝƚǁŝůůďĞƌĞƋƵŝƌĞĚďLJƚŚĞĞǀĞůŽƉĞƌĨŽƌƚŚĞƌĞůŽĐĂƚĞĚƐƚŽƌŵƐĞǁĞƌĚŝƚĐŚ ĂŶĚĐƵůǀĞƌƚǁŝƚŚƚŚĞZKt͕ƉƌŝŽƌƚŽŝƐƐƵĂŶĐĞŽĨďƵŝůĚŝŶŐƉĞƌŵŝƚƐ͘ ϳ͘ƉŚŽƚŽŵĞƚƌŝĐƉůĂŶƐĂƚŝƐĨLJŝŶŐƚŚĞnjŽŶŝŶŐŽƌĚŝŶĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚĨŽƌŵƵůƚŝ Ͳ ĨĂŵŝůLJŝŶƚŚĞZ Ͳ ϮƐŚĂůůďĞ ƐƵďŵŝƚƚĞĚƉƌŝŽƌƚŽĂƉƉƌŽǀĂůŽĨďƵŝůĚŝŶŐƉĞƌŵŝƚƐͬnjŽŶŝŶŐĐĞƌƚŝĨŝĐĂƚĞƐĨŽƌƚŚĞƐŝƚĞ͘ ϴ͘dŚĞƉůĂŶƐŚŽƵůĚďĞƵƉĚĂƚĞĚƚŽŝĚĞŶƚŝĨLJƚŚĞƐŝnjĞĂŶĚŵĂƚĞƌŝĂůŽĨƚŚĞǁĂƚĞƌƐĞƌǀŝĐĞ͘dŚĞĐŽŶŶĞĐƚŝŽŶƚŽ ƚŚĞĞdžŝƐƚŝŶŐǁĂƚĞƌŵĂŝŶŵƵƐƚďĞƐŚŽǁŶĂƐĂƚĂƉƉŝŶŐƐůĞĞǀĞĂŶĚǀĂůǀĞ͘ ϵ͘<ĞĞƉƚŚĞďŽƵůĞǀĂƌĚƚƌĞĞƐĂŵŝŶŝŵƵŵŽĨϭϬ͛ĨƌŽŵƚŚĞĞdžŝƐƚŝŶŐƉƵďůŝĐǁĂƚĞƌŵĂŝŶƚŚĂƚŝƐůŽĐĂƚĞĚǁŝƚŚ ƚŚĞϭϳ ƚŚǀĞŶƵĞ^tZKt;ĂƐƐŚŽǁŶŽŶƚŚĞƉůĂŶͿ͘ ŽŶƚŝŶƵĞĚ/ƚĞŵƐ͗ >ĂŶĚhƐĞWůĂŶŵĞŶĚŵĞŶƚηZϮϬϭϲ Ͳ ϬϬϱ>hW͕ŽŶŝŶŐDĂƉŵĞŶĚŵĞŶƚηZϮϬϭϲ Ͳ ϬϬϰĂŶĚ'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚ WůĂŶηZϬϬϯϰϭ'WƚŽďĞŬŶŽǁŶĂƐtĞƐƚŝŐŚƚLJĞǀĞůŽƉŵĞŶƚďLJ^ƚĞƌůŝŶŐZĞĂůƐƚĂƚĞdƌƵƐƚ͘dŚĞůĂŶĚƵƐĞƉůĂŶŵĂƉ ĂŵĞŶĚŵĞŶƚƉƌŽƉŽƐĞƐƚŽƌĞ Ͳ ĚĞƐŝŐŶĂƚĞƚŚĞƐŝƚĞĨƌŽŵŽŵŵĞƌĐŝĂůƚŽDĞĚŝƵŵĞŶƐŝƚLJZĞƐŝĚĞŶƚŝĂů͘dŚĞnjŽŶŝŶŐŵĂƉ ĂŵĞŶĚŵĞŶƚƉƌŽƉŽƐĞƐƚŽƌĞ Ͳ njŽŶĞƚŚĞƐŝƚĞĨƌŽŵD Ͳ ϭDŝdžĞĚŽŵŵĞƌĐŝĂů/ŶĚƵƐƚƌŝĂůƚŽZ Ͳ ϯDĞĚŝƵŵĞŶƐŝƚLJ ZĞƐŝĚĞŶƚŝĂů͘dŚĞ'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶƉƌŽƉŽƐĞƐŵƵůƚŝ Ͳ ĨĂŵŝůLJƌĞƐŝĚĞŶƚŝĂůƵƐĞ͘dŚĞƐŝƚĞŝƐŽŶĨŝǀĞƐĞƉĂƌĂƚĞ ƉƌŽƉĞƌƚŝĞƐ͕ĂƉƉƌŽdžŝŵĂƚĞůLJϭϴ͘ϴĂĐƌĞƐƚŽƚĂů͕ǁĞƐƚŽĨŽŵŵĞƌĐŝĂůƌŝǀĞ^t͘ Dƌ͘ƵƌŚŽƉƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵůLJϳ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞĂƚƚŚĞ ZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ DƐ͘DĞĞŬŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘tĂĚĞEĞƵďĂƵĞƌ͕ĐŽŶƐƵůƚĂŶƚǁŝƚŚ^,͕ϳϭϳdŚŝƌĚǀĞŶƵĞ^͕ZŽĐŚĞƐƚĞƌDEϱϱϵϬϰ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ,ĞƉƌĞƐĞŶƚĞĚƉƌŽũĞĐƚŚŝƐƚŽƌLJĂŶĚďĂĐŬŐƌŽƵŶĚ͖ƚŚĞĐƌĞĂƚŝŽŶŽĨƚŚĞďĞƌŵǁĂƐĨŽƌŚĞůƉŝŶŐƚŽďƵĨĨĞƌďĞƚǁĞĞŶƚǁŽ ĚĞǀĞůŽƉŵĞŶƚƐ͖ƉƌŽƉĞƌƚLJƚŽƚŚĞǁĞƐƚŝƐEZƉƌŽƉĞƌƚLJĂŶĚĨůŽŽĚƉůĂŝŶŝƐĞdžŝƐƚŝŶŐ͖ŚĞƌĞǀŝĞǁĞĚƚŚĞĨŝŶĚŝŶŐƐŝŶƚŚĞƐƚĂĨĨ ƌĞƉŽƌƚĂŶĚĚŝƐĐƵƐƐĞĚĂĚũĂĐĞŶƚĐŽŵŵĞƌĐŝĂůƐŝƚĞƐŝŶƌĞůĂƚŝŽŶƚŽƚŚĞƉƌŽƉŽƐĞĚĚĞǀĞůŽƉŵĞŶƚ͖ƐƵďƐƚĂŶƚŝĂůŝŵƉƌŽǀĞŵĞŶƚƐ ŚĂǀĞďĞĞŶŵĂĚĞĨŽƌƉĞĚĞƐƚƌŝĂŶĐŽŶŶĞĐƚŝŽŶƐƚŽƚŚĞ^ŚŽƉƉĞƐŽŶDĂŝŶĞ͖ƚŚĞƌĞŝƐĂĨƵƚƵƌĞĂůŝŐŶŵĞŶƚŽĨĂĨƌŽŶƚĂŐĞƌŽĂĚ ĂůŽŶŐƚŚĞǁĞƐƚƐŝĚĞŽĨ,ŝŐŚǁĂLJϲϯƐŽƚŚĞĨŝŶĚŝŶŐŽĨƚŚĞƉƌŽdžŝŵŝƚLJŽĨĂďƵƐƐƚŽƉďĞŝŶĂĐĐĞƐƐŝďůĞŝƐŶŽƚĂŐƌĞĞĂďůĞ͖ĂŶĚ ŶŽƚĞĚůĞƚƚĞƌŽĨƐƵƉƉŽƌƚĨƌŽŵƚŚĞĂĚũĂĐĞŶƚĐŽŵŵĞƌĐŝĂůƉƌŽƉĞƌƚŝĞƐ͖ĂŶĚĂŶĞŝŐŚďŽƌŚŽŽĚŵĞĞƚŝŶŐǁĂƐŚĞůĚǁŝƚŚŶŽ ŶĞŝŐŚďŽƌƐŽƌĂĚũĂĐĞŶƚƉƌŽƉĞƌƚLJŽǁŶĞƌƐŝŶĂƚƚĞŶĚĂŶĐĞ͘ _3DJH 3DFNHW3J )K ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵůLJϭϯ͕ϮϬϭϲ DƐ͘^ĞĂďƌŽŽŬĐŽŵŵĞŶƚĞĚĐŽŶĐĞƌŶǁŝƚŚƌĞƐŝĚĞŶƚƐůŝǀŝŶŐŝŶƚŚĞƉƌŽƉŽƐĞĚĂƌĞĂĂŶĚƚŚĞĂĚŽůĞƐĐĞŶƚƐŚĂǀŝŶŐĂĐĐĞƐƐƚŽ ƉůĂĐĞƐůŝŬĞƐƵĐŚĂƐDĐŽŶĂůĚƐĂŶĚĂƚƌƵĐŬƐƚŽƉ͘ Dƌ͘EĞƵďĂƵĞƌŶŽƚĞĚƚŚĞϮϰŚŽƵƌŽƉĞƌĂƚŝŽŶĂŶĚůŝŐŚƚŝŶŐŽĨƚŚĞƚƌƵĐŬƐƚŽƉŚĂǀĞďĞĞŶƐƵďŵŝƚƚĞĚǁŝƚŚƉŚŽƚŽŵĞƚƌŝĐ ĚƌĂǁŝŶŐĂŶĚŝƚƌĞƉƌĞƐĞŶƚƐƚŚĞůŝŐŚƚŝŶŐďĞŝŶŐŬĞƉƚƚŽƚŚĞƉƌŽƉĞƌƚLJ͘ DƐ͘^ĞĂďƌŽŽŬĂƐŬŝŶŐĂďŽƵƚŽƚŚĞƌƉƌŽƉĞƌƚLJŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌƚŚŝƐƐŝƚĞ͘ Dƌ͘EĞƵďĂƵĞƌŶŽƚĞĚŵĂƌŬĞƚŝŶŐŚĂƐďĞĞŶĂĚĚƌĞƐƐĞĚĨŽƌŚŽƚĞůƐĂŶĚƌĞƐƚĂƵƌĂŶƚƐďƵƚŶŽŝŶƚĞƌĞƐƚŚĂƐďĞĞŶƐŚŽǁŶ͘,Ğ ĂůƐŽĐŽŵŵĞŶƚĞĚŽŶƚŚĞdƌĂĨĨŝĐŝŵƉĂĐƚƐƚƵĚLJŚĂƐďĞĞŶƐƵďŵŝƚƚĞĚƚŽƚŚĞŝƚLJWƵďůŝĐtŽƌŬƐĞƉĂƌƚŵĞŶƚƐ͖ĐŽŵŵĞŶƚƐ ŚĂǀĞďĞĞŶƌĞĐĞŝǀĞĚĂŶĚƚŚĞLJŚĂǀĞƌĞƐƉŽŶĚĞĚƐŽƌĞƋƵĞƐƚĞĚƚŚĞĐŽŶĚŝƚŝŽŶďĞƐƚƌƵĐŬŝŶƌĞŐĂƌĚƐƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚ ďĞŝŶŐůŝŵŝƚĞĚƵŶƚŝůŽŵŵĞƌĐŝĂůƌŝǀĞŝƐĞdžƚĞŶĚĞĚ͘ Ɛƚ Dƌ͘DĂƌŬhƚnj͕tĞŶĚůĂŶĚΘhƚnj͕ůŽĐĂƚĞĚϮϭϭ^ƚƌĞĞƚ^t͕ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂϱϱϵϬϮ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ,ĞĂĚĚƌĞƐƐĞĚƚŚĞƐƚĂĨĨĐŽŵŵĞŶƚĂďŽƵƚƚŚĞƉƌŽƉĞƌƚLJďĞŝŶŐŝƐŽůĂƚĞĚ͖ŚĞĚŝƐĂŐƌĞĞĚĂƐƚŚĞĂĐĐĞƐƐƚŽƚŚĞƌĞƚĂŝůĂĐƌŽƐƐ ƚŚĞŚŝŐŚǁĂLJŝƐĂǀĂŝůĂďůĞ͖ƚƌĂŝůƐLJƐƚĞŵŝƐĂǀĂŝůĂďůĞĨŽƌƉĞĚĞƐƚƌŝĂŶƐ͖ĂŶĚŶŽƚĞĚƚŚĞŶĂƚƵƌĂůďƵĨĨĞƌƚŽƚŚĞŶŽƌƚŚĨŽƌƚŚĞ ƉƌŽƉĞƌƚLJĂŶĚƚŚĞƵƐĞŽĨůĂŶĚƐĐĂƉŝŶŐƚĞĐŚŶŝƋƵĞƐ͖ĂŶĚŶĞŝŐŚďŽƌŚŽŽĚƐƵƉƉŽƌƚŚĂƐďĞĞŶĚŽĐƵŵĞŶƚĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĐŽŵŵĞŶƚĞĚŽŶƉƌŽƉĞƌƚŝĞƐĂĚũĂĐĞŶƚŽŶƚŚĞĞĂƐƚƐŝĚĞŽĨ,ŝŐŚǁĂLJϲϯĚŽŶŽƚƐŚĂƌĞĂŶĂĐĐĞƐƐǁŝƚŚ ƚŚĞĐŽŵŵĞƌĐŝĂůƉƌŽƉĞƌƚŝĞƐ͖ĂƐǁŝƚŚƚŚĞƉƌŽƉŽƐĞĚĚĞǀĞůŽƉŵĞŶƚǁŽƵůĚďĞƵƐŝŶŐƚŚĞƐĂŵĞĂĐĐĞƐƐƉŽŝŶƚ͘ Dƌ͘dŽŵ,ĞdžƵŵ͕ĚĞǀĞůŽƉĞƌůŽĐĂƚĞĚĂƚϰϯϮϱDĂŝŶĞǀĞŶƵĞ^͕ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϰ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,Ğ ĐŽŵŵĞŶƚĞĚĂƐƚŚĞŽƌŝŐŝŶĂůĚĞǀĞůŽƉĞƌŽĨƚŚĞƉƌŽƉĞƌƚLJĂŶĚƌĞĐĂƉƉĞĚƚŚĞŚŝƐƚŽƌLJŽĨƚŚĞƐŽƵƚŚĞĂƐƚĂƌĞĂĚĞǀĞůŽƉŵĞŶƚ͖ ĐŽŵŵĞŶƚĞĚŽŶƚŚĞƚƌĂĨĨŝĐƉĂƚƚĞƌŶƐĂŶĚƵƐĞŽŶϰϬ ƚŚ^ƚƌĞĞƚ͖^ƚ͘ƌŝĚŐĞƚƐZŽĂĚ͕ĂŶĚϰϴ ƚŚ^ƚƌĞĞƚĂƌĞĨƵŶĐƚŝŽŶŝŶŐǁĞůů͖ƚŚĞ ƵƐĞŽĨƉĂƌŬĂŶĚƌŝĚĞĂƚdĂƌŐĞƚŝƐĂĐĐĞƐƐŝďůĞďLJƚŚĞŽƵůĚĞƌƐ͖ĨŝƚŶĞƐƐƚƌĂŝůƐŚĂǀĞďĞĞŶĐŽŵƉůĞƚĞĚŝŶƚŚĞĂƌĞĂ͖ĂŶĚ ĐŽŵŵĞŶƚĞĚƚŚĂƚĚĞǀĞůŽƉĞƌƐĂƌĞƐĞĞŝŶŐƚŚĞƐŝƚĞĂƐĂƉŽƚĞŶƚŝĂůůŽĐĂƚŝŽŶĨŽƌƌĞƐŝĚĞŶƚŝĂůŚŽƵƐŝŶŐ͖ĂŶĚƐƚĂƚĞĚƚŚĞƌĞŝƐĂŶ ĂĐƚŝǀĞŵŝŶŝŶŐƉĞƌŵŝƚďLJ&ƌĂŶŬ<ŽƚƚƐĐŚĂĚĞŽŶϰϬ ƚŚ^ƚƌĞĞƚ͘ Ɛƚ Dƌ͘DĂƌŬhƚnj͕tĞŶĚůĂŶĚΘhƚnj͕ůŽĐĂƚĞĚĂƚϮϭϭ^ƚƌĞĞƚ^t͕ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂϱϱϵϬϮ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ,ĞƐƚĂƚĞĚĂŐƌĞĞŵĞŶƚǁŝƚŚDƌ͘^ŝŵƐǁŝƚŚƚŚĞƉŽƐŝƚŝŽŶŽĨƚŚĞWďLJǀŽƚŝŶŐŝŶĨĂǀŽƌŽĨĞŶĐŽƵƌĂŐŝŶŐĚĞǀĞůŽƉŵĞŶƚƐ ǁŚŝĐŚƉƌŽǀŝĚĞĂƉŽƐŝƚŝǀĞĨƵƚƵƌĞůĂŶĚƵƐĞ͘ tŝƚŚŶŽŽŶĞĞůƐĞǁŝƐŚŝŶŐƚŽďĞŚĞĂƌĚ͕DƐ͘DĞĞŬĐůŽƐĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌƐƚĂƚĞĚŚĞĨĞůƚƐŽŵĞŽĨƚŚĞĚŝƐĐƵƐƐŝŽŶǁĂƐďĞLJŽŶĚƚŚĞŝƌƐĐŽƉĞŽĨƚŚĞĐƵƌƌĞŶƚƌĞƋƵĞƐƚ͖ƚŚĞ ƉƌĞƐĞŶƚĞĚƉƌŽƉŽƐĞĚĚĞǀĞůŽƉŵĞŶƚǁŽƵůĚďĞĨĂĐŝŶŐƚŚĞĨĂĐĂĚĞŽĨĐŽŵŵĞƌĐŝĂůĚĞǀĞůŽƉŵĞŶƚ͖ĂŶĚƋƵĞƐƚŝŽŶƐŝĨƚŚĞƐĞ ĂƉƉůŝĐĂƚŝŽŶƐŵĞĞƚƚŚĞůŽĐĂƚŝŽŶĂůĂƐƉĞĐƚĨŽƌƌŝƚĞƌŝĂů͘ Dƌ͘,ŝůůĐŽŵŵĞŶƚĞĚŽŶƚŚĞƚƌĂŶƐŝƚŝƐƐƵĞĂƐĂŶĞĞĚŝƐƐƵĞ͖ŚŽǁƚŚŝƐĚĞǀĞůŽƉŵĞŶƚŝƐŝŶŝƐŽůĂƚŝŽŶĨƌŽŵŽƚŚĞƌƌĞƐŝĚĞŶƚŝĂů ĂƌĞĂƐ͖ĐŽŵŵĞŶƚĞĚŽŶŚŽǁƉĂƐƚĚĞǀĞůŽƉŵĞŶƚƐďĞŝŶŐďƵŝůƚďĞLJŽŶĚƚŚĞƌĞĂĐŚŽĨĐŽŵŵĞƌĐŝĂůďƵƚĚŽĞƐĂŶƚŝĐŝƉĂƚĞ ŐƌŽǁƚŚ͖ďƵĨĨĞƌŝŶŐĞdžŝƐƚŝŶŐŝŶƐŝĚĞŝƚLJ͛ƐĂŶĚŶŽŝƐĞŝƚŝƐƚŚĞĐŚŽŝĐĞŽĨƚŚĞƌĞƐŝĚĞŶƚƐŝĨƚŚĞLJǁĂŶƚƚŽůŝǀĞƚŚĞƌĞ͖ĂŶĚďĂƐĞĚ ŚĞĚŽĞƐŶŽƚĂŐƌĞĞŽŶƚŚĞƐƚĂĨĨĐŽŶĚŝƚŝŽŶƐ͘ Dƌ͘^ŚĞƌǁŽŽĚŶŽƚĞĚŽŶƚŚĞĐŽŵŵĞƌĐŝĂůĚĞǀĞůŽƉŵĞŶƚĨĂĐŝŶŐƚŚĞĨƌŽŶƚŽƌƚŚĞďĂĐŬ͕ƚŚŝƐŝĚĞĂŽĨƚŚĞĚĞǀĞůŽƉŵĞŶƚ ĨĂĐŝŶŐƚŚĞĐŽŵŵĞƌĐŝĂůŝƐŶŽƚĂŶŝƐƐƵĞ͖ĞdžŝƐƚŝŶŐǁĞƚůĂŶĚƐĂƌĞĂƉŽƐŝƚŝǀĞĂƐƉĞĐƚŽĨƚŚĞƉƌŽũĞĐƚĂŶĚŝƐƐƵƉƉŽƌƚŝǀĞŽĨƚŚĞ ƉƌŽũĞĐƚ͘ Dƌ͘ƵƌƐƚƐƚĂƚĞĚŚŝƐƐƵƉƉŽƌƚĨŽƌƚŚĞƉƌŽũĞĐƚĂŶĚůŝŬĞƐƚŚĞĚĞǀĞůŽƉŵĞŶƚ͖ŚĂƐǀŝƐŝƚĞĚƚŚĞ<ǁŝŬƚƌŝƉƐŝƚĞĂŶĚĚŽĞƐŶŽƚƐĞĞ ĂƉƌŽďůĞŵĨŽƌƚƌƵĐŬƚƌĂĨĨŝĐŽƌŶŽŝƐĞ͘ _3DJH 3DFNHW3J )K ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵůLJϭϯ͕ϮϬϭϲ DƐ͘^ĞĂďƌŽŽŬƐƚĂƚĞĚƐŚĞĂƉƉƌĞĐŝĂƚĞƐƚŚĞƐƵƉƉŽƌƚŽĨƚŚĞƉƌŽũĞĐƚĨŽƌƚŚĞŶĞĞĚŽĨŚŽƵƐŝŶŐ͖ďƵƚĨĞĞůƐƐŚĞĚŽĞƐŶŽƚŚĂǀĞ ĞŶŽƵŐŚŝŶĨŽƌŵĂƚŝŽŶƚŽƐƵƉƉŽƌƚƚŚĞƉƌŽũĞĐƚĨŽƌƚŽƉŽŐƌĂƉŚŝĐĂŶĚĐŽŶĐĞƌŶƐǁŝƚŚŝƐŽůĂƚĞĚŚŽƵƐŝŶŐŝƐĂĐŽŶĐĞƌŶǁŝƚŚƚŚŝƐ ĚĞǀĞůŽƉŵĞŶƚ͖ŶŽƌŚĂǀĞƚŚĞƚƌĂĨĨŝĐĐŽŶĐĞƌŶƐďĞĞŶĂĚĚƌĞƐƐĞĚ͘ Dƌ͘^ŝŵƐƐƚĂƚĞĚŚĞĂŐƌĞĞƐǁŝƚŚƚŚĞƐƚĂĨĨƌĞĐŽŵŵĞŶĚĞĚĚĞŶŝĂůĂƐŝƚĐƌĞĂƚĞƐĂŶŝƐŽůĂƚĞĚƌĞƐŝĚĞŶƚŝĂůĚĞǀĞůŽƉŵĞŶƚŝŶĂ ĐŽŵŵĞƌĐŝĂůĂƌĞĂ͘ DƐ͘DĞĞŬŶŽƚĞĚĐŽŶĐĞƌŶǁŝƚŚƚŚĞƵŶŬŶŽǁŶƐƚŽƚŚĞD Ͳ ϭƉƌŽƉĞƌƚLJƚŽƚŚĞŶŽƌƚŚ͖ĂŶĚĂĚũĂĐĞŶƚĂůůŽǁĞĚƵƐĞƐĂƌĞ ŝŶĐŽŵƉĂƚŝďůĞǁŝƚŚƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞĐŽŵŵŝƐƐŝŽŶŝŶŵĞĞƚŝŶŐƚŚĞĐƌŝƚĞƌŝĂƐƚĂƚĞĚŝŶƚŚĞŽŶŝŶŐKƌĚŝŶĂŶĐĞĂƐƚŽǁŚĂƚŶĞĞĚƐƚŽ ďĞƚŚĞĐŽŵŵŝƐƐŝŽŶŐƵŝĚĞůŝŶĞƐ͘ DƐ͘tŝůƐŽŶĐŽŵŵĞŶƚĞĚŽŶƚŚĞƐƚĂĨĨƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐĂŶĚŝƐŝŶĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞŝƌĨŝŶĚŝŶŐƐĂŶĚĨĞĞůƐƚŚĞ ŽƌĚŝŶĂŶĐĞĐƌŝƚĞƌŝĂŶĞĞĚƐƚŽďĞĨŽůůŽǁĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ>ĂŶĚhƐĞWůĂŶŵĞŶĚŵĞŶƚηZϮϬϭϲ Ͳ ϬϬϱ>hWǁŝƚŚ ƚŚĞƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐ͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϱ Ͳ ϯ͘Dƌ͘ƵƌƐƚ͕ Dƌ͘,ŝůůĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨŽŶŝŶŐDĂƉŵĞŶĚŵĞŶƚηZϮϬϭϲ Ͳ ϬϬϰǁŝƚŚƚŚĞ ƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐ͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϱ Ͳ ϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘ ,ŝůůĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶηZϬϬϯϰϭ'WǁŝƚŚƚŚĞ ƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐ͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϱ Ͳ ϯ͘Dƌ͘,ŝůů͕Dƌ͘ ƵƌƐƚĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘ ϱ ͲŵŝŶƵƚĞƌĞĐĞƐƐĞƐƚĂŬĞŶ͘ WƵďůŝĐ,ĞĂƌŝŶŐƐ͗ DƐ͘tŝůƐŽŶƌĞĐƵƐĞĚŚĞƌƐĞůĨĨƌŽŵĚŝƐĐƵƐƐŝŽŶĂŶĚǀŽƚŝŶŐ͘ ZĞƐƚƌŝĐƚĞĚĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶηZϮϬϭϲ Ͳ ϬϮϮhWďLJ>dh^>>ƚŽĂůůŽǁƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨĂϭϯƐƚŽƌLJ ďƵŝůĚŝŶŐǁŝƚŚϯϱϵƌĞƐŝĚĞŶƚŝĂůƵŶŝƚƐ͕ϮϬ͕ϬϬϬƐĨŽĨZĞƚĂŝůͬKĨĨŝĐĞƐƉĂĐĞĂŶĚϴϴϯƐƉĂĐĞƉĂƌŬŝŶŐĨĂĐŝůŝƚLJ͘dŚĞƉƌŽƉĞƌƚLJŝƐ ůŽĐĂƚĞĚĂůŽŶŐϮŶĚ^ƚƌĞĞƚ^tďĞƚǁĞĞŶϭϰƚŚǀĞŶƵĞ^tĂŶĚϭϱƚŚǀĞŶƵĞ^t͘ Dƌ͘ŶŐĞůƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵůLJϭϯ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞĂƚƚŚĞ ZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŝŶƋƵŝƌĞĚŝŶƚŽĂŶƵŵďĞƌŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐŝŶƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͖ƐƵĐŚĂƐƌĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨƚŚĞƐƚƌĞĞƚƐ ŝŶĐůƵĚŝŶŐƚŚĞK^Dηϭϵ͘ Dƌ͘^ŝŵƐĂƐŬĞĚĂďŽƵƚƚŚĞƚƌĂĨĨŝĐŝŵƉĂĐƚƌĞƉŽƌƚĂŶĚŶŽƚďĞŝŶŐŝŶĐůƵĚĞĚŝŶƚŚĞŵĞĞƚŝŶŐƉĂĐŬĞƚ͘ Dƌ͘ŶŐĞůƐƚĂƚĞĚƚŚĞƐƚƵĚLJŝƐƉƌĞůŝŵŝŶĂƌLJĂŶĚƚƌĂĚŝƚŝŽŶĂůůLJŝƐŶŽƚŝŶĐůƵĚĞĚŝŶƚŚĞŵĞĞƚŝŶŐƉĂĐŬĞƚ͘ DƐ͘DĞĞŬĂƐŬĞĚŝĨƚŚĞĐŽŶĚŝƚŝŽŶƐĂƐƐƚĂƚĞĚŝŶƚŚĞƐƚĂĨĨƌĞƉŽƌƚĂƌĞĂƉƉƌŽǀĞĚ͖ĂŶĚĐŽƵůĚƚŚĞĨŝŶĂůƉůĂŶďĞƐŝŐŶŝĨŝĐĂŶƚůLJ ĚŝĨĨĞƌĞŶƚůLJĨƌŽŵƚŚĞƉƌĞůŝŵŝŶĂƌLJ _3DJH 3DFNHW3J )L >ĞŐĂůĞƐĐƌŝƉƚŝŽŶ >ŽƚƐϭ͕Ϯ͕ϯ͕ϰ͕ĂŶĚϱůŽĐŬϮt^d/',dzs>KWDEdĂĐĐŽƌĚŝŶŐƚŽƚŚĞƉůĂƚŽŶĨŝůĞĂƚƚŚĞŽƵŶƚLJ ZĞĐŽƌĚĞƌ͛ƐŽĨĨŝĐĞ͕KůŵƐƚĞĚŽƵŶƚLJ͕DŝŶŶĞƐŽƚĂ͘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¶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