Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
July 6, 2016 Agenda Packet
&,7<2)52&+(67(5 &LW\&RXQFLO$JHQGD &RXQFLO%RDUG&KDPEHUV WK6WUHHW6( 5HJXODU0HHWLQJ-XO\ &LW\&RXQFLO$JHQGD :HGQHVGD\-XO\ 3DJHRI '&LW\2ZQHUDQG&RQVWUXFWLRQ2EVHUYDWLRQ&RQWUDFWV3XEOLF,PSURYHPHQWVWR 6HUYH6KDQQRQ2DNV6L[WK6XEGLYLVLRQ- '&LW\2ZQHUDQG&RQVWUXFWLRQ2EVHUYDWLRQ&RQWUDFWV±3XEOLF,PSURYHPHQWVWR 6HUYH&DULERX&RIIHHDW5LYHU&HQWHU3OD]D- '6RXWK%URDGZD\52:4XLW&ODLP'HHGWR&LW\±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±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͚͟ǡ͚͙͘͞ 'E 3DFNHW3J ǡ Ǥ dĂƐŬ&ŽƌĐĞŚĂƌŐĞ͗ 'E 3DFNHW3J ͕ ĂƚĞƌŝŶŐ ΎĞŶŽƚĞƐŵĞŵďĞƌƐǁŚŽĂƌĞĂůƐŽŵĞŵďĞƌƐŽĨƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌWƵďůŝĐ džĞĐƵƚŝǀĞŝƌĞĐƚŽƌ͕ZŽĐŚĞƐƚĞƌƌƚĞŶƚĞƌ sŝĐĞŚĂŝƌ͕DĂLJŽŝǀŝĐĞŶƚĞƌŽŵŵŝƐƐŝŽŶ WƌŝŶĐŝƉĂůͬ^ĞŶŝŽƌƌĐŚŝƚĞĐƚ͕d^WƌĐŚŝƚĞĐƚƐ ĞŶKǁĞŶ͕DŝŶŶĞƐŽƚĂ^ƚĂƚĞƌƚƐŽĂƌĚ ^ŽŶƚĞƐ džĞĐƵƚŝǀĞŝƌĞĐƚŽƌ͕DĂLJŽŝǀŝĐĞŶƚĞƌ KǁŶĞƌ͕'ƌĂŶĚZŽƵŶĚƐƌĞǁWƵď͕ WƌĞƐŝĚĞŶƚ͕WD/ ƌƚDĂƐƚĞƌWůĂŶŶŝŶŐdĂƐŬ&ŽƌĐĞ ʹ DĞŐĂŶ:ŽŚŶƐƚŽŶΎ ʹ ʹ ^ƚĞǀĞ^ŽƌĞŶƐŽŶ DĂƌǀDŝƚĐŚĞůůΎ ʹ ʹ ʹ ƌĞǁƐ ^ƵƐĂŶ:ŽŶĞƐ >ƵĞŶŐ KĨĨŝĐĞ &ĂĐŝůŝƚĂƚŽƌ͗ DĞŵďĞƌƐ͗ ŽŶŶĂ dĞƐƐĂ͛Ɛ dĞƐƐĂ 'E 3DFNHW3J dĂƐŬ&ŽƌĐĞŝĚĞŶƚŝĨŝĞĚŬĞLJĂƌĞĂƐĨŽƌƉŽƚĞŶƚŝĂů džƚĞƌŶĂůƉƌŽŵĞŶĂĚĞ͕ƐŽƵƚŚƐŝĚĞŽĨďƵŝůĚŝŶŐ ƌƚŝƐƚƐĚŝƐĐƌĞƚŝŽŶďĂƐĞĚŽŶĂƌĐŚŝƚĞĐƚƵƌĂů ƚŚƌŽƵŐŚ͟ Ͳ ƌĞŶĚĞƌŝŶŐƐĂŶĚ͞ĨůLJ ^tŽƌŶĞƌƚƌŝƵŵ 'ƌĂŶĚ^ƚĂŝƌĐĂƐĞ ƉƵďůŝĐĂƌƚ 'E 3DFNHW3J ^ŝŐŶŝĨŝĐĂŶƚĂƐƐŝƐƚĂŶĐĞĨƌŽŵDE^ƚĂƚĞƌƚƐŽĂƌĚƉƌŝů Ϳ ĐĂůůĨŽƌĞŶƚƌLJ͘ŽƌŐ ; ^ƚĂƚĞŵĞŶƚŽĨŝŶƚĞƌĞƐƚͬĐŽŶĐĞƉƚ Ă& ĂĐŚƌĞƐƉŽŶƐĞƐĐŽƌĞĚďLJ͗ ^ĂŵƉůĞƐŽĨƉƌĞǀŝŽƵƐǁŽƌŬ ƌĞĐĞŝǀĞĚ Z&WƌĞůĞĂƐĞĚƚŚƌŽƵŐŚ ĞǀĞůŽƉĞĚZ&W ƌƚŝƐƚƌĞƐƵŵĞ ϵϯƌĞƐƉŽŶƐĞƐ ƵĚŐĞƚ ϮϬϭϲ 'E 3DFNHW3J ƐŝƚĞŵĞĞƚŝŶŐĂŶĚƚŽƵƌ͕ĂŶĚƉƌŽǀŝĚĞĚ ƌƚŝƐƚƐŝŶǀŝƚĞĚƚŽƉƌĞƐĞŶƚĂƚũƵƌLJŽĨƚŚĞĨƵůůdĂƐŬ&ŽƌĐĞ ŽůůĂďŽƌĂƚŝǀĞƐĐŽƌŝŶŐƌĞĚƵĐĞĚĨŝĞůĚƚŽϯĂƌƚŝƐƚƐ͕ǁŚŽ ĂƐƚŝƉĞŶĚƚŽĐƌĞĂƚĞĐŽŶĐĞƉƚ͕ƉƌŽƉŽƐĂůĂŶĚĞdžĂŵƉůĞ KŶĞĂƌƚŝƐƚƌĞƚƌĂĐƚĞĚƚŚĞŝƌƉƌŽƉŽƐĂů͕ƌĞƉůĂĐĞĚďLJηϰ KŶĞĂƌƚŝƐƚͬƉƌŽƉŽƐĂůƐĞůĞĐƚĞĚĨŽƌƌĞĐŽŵŵĞŶĚĂƚŝŽŶ Ͳ ƌƚŝƐƚƐŽĨĨĞƌĞĚŽŶ ǁĞƌĞŶŽƚŝĨŝĞĚ 'E 3DFNHW3J ̹ ǡ tĂŶŐ;>ŝǀŝŶŐ>ĞŶƐĞƐͿ ͛ά Ǥ ͟ ŝƌĐƵŵĐĞŶƚĞƌ WƌŽũĞĐƚĐŽƐƚ͗ΨϭϲϬ͕ϬϬϬ dŝƚůĞ͗ƐLJĞƚ͕ƵŶƚŝƚůĞĚ tŽƌŬŝŶŐƚŝƚůĞ͗͞ ^ŚƵ ƌƚŝƐƚ͗WŽ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´ IURP ILOO HYHQWV ZKHUH WKH WKHLU WDON ³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¶VG\QDPLFFRQWHQW WKH LJKWFRPSRVLWLRQ GHSHQGVHQWLUHO\RQ WUDQVODWHGWR VKDUHWKHLU NLRVNRQQGIORRU WKH FRUUHVSRQGLQJ LQSXW SOD]DZKHUH SXEOLF¶V V 9LVLWRU ZRUGV /('O 'E 3DFNHW3J 3HUVSHFWLYH9LHZ 'E 3DFNHW3J 'F '5$)7 $*5((0(17%(7:((1 &,7<2)52&+(67(50,11(627$ $1' 326+8:$1* '%$/LYLQJ/HQVHV 5(*$5',1* 38%/,&$57$70$<2&,9,&&(17(5 7KLV$JUHHPHQWLVPDGHRQ-XQHEHWZHHQ7KH&LW\RI5RFKHVWHU0LQQHVRWD WKH³2ZQHU´ DQG 3R6KX:DQJ '%$/LYLQJ/HQVHV &DOLIRUQLD6WUHHW%HUNHOH\&$ RQWUDFWRUDQG$UFKLWHFWIRUWKH 3URMHFW 0D\R&LYLF&HQWHU3XEOLF$UW'5$)7-XQH 3DJHRI 3DFNHW3J 'F 7KH$UWLVWVKDOOFRQVXOWDQGZRUNLQDFROODERUDWLYHPDQQHUZLWKWKH3URMHFW$UFKLWHFW*HQHUDO &RQWUDFWRU2ZQHUDQGRWKHUVDVLGHQWLILHGE\WKH2ZQHU '(6,*1352326$/± [[840,472,1593,525][11][,I,][Times New Roman]]7KHZRUNGHVFULEHGLQ3DUDJUDSKV [[1593,472,2261,525][11][,I,][Times New Roman]]WKURXJKZDVSURYLGHGXQGHUD [[295,530,1277,583][11][,I,][Times New Roman]]SUHYLRXVDJUHHPHQW,WLVLQFOXGHGKHUHIRUUHIHUHQFH 7KHGHVLJQSURSRVDOLV3KDVH2QHRIWKHGHVLJQSURFHVV$VSURPSWO\DVSRVVLEOHDIWHUWKHH[HFXWLRQ RIWKLV$JUHHPHQWDQ,QLWLDO'HVLJQPHHWLQJZLOOEHKHOGDWWKH0D\R&LYLF&HQWHURUYLD FRQIHUHQFHFDOO7KHLQWHQWRIWKHPHHWLQJLVWRSURYLGHWKH$UWLVWLQIRUPDWLRQDQGLQSXWIURPDOO DIIHFWHGSDUWLHVRIWKH3URMHFWLQRUGHUIRUWKH$UWLVWWRSUHSDUHVFKHPDWLFGHVLJQSURSRVDOVRIWKH :RUN WKH³6FKHPDWLF'HVLJQ3URSRVDO´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¶VILQDO:RUN&RQVWUXFWLRQ'RFXPHQWVXEPLVVLRQ SXUVXDQWWRWKLV6HFWLRQWKH2ZQHUVKDOOQRWLI\WKH$UWLVWRIWKHDSSURYDO RUGLVDSSURYDO RI VXFKDVXEPLVVLRQ RUVXEPLVVLRQV DQGRIDOOUHYLVLRQVPDGHLQWKH:RUN&RQVWUXFWLRQ'RFXPHQWV DVDUHVXOWWKHUHRI5HYLVLRQVPDGHSXUVXDQWWRWKLV6HFWLRQVKDOOEHFRPHSDUWRIWKH:RUN (;(&87,212)7+(:25. :LWKLQWKLUW\ GD\VDIWHUZULWWHQDSSURYDORIWKH:RUN&RQVWUXFWLRQ'RFXPHQWDQGUHYLVLRQV PDGHWRSXUVXDQWWR6HFWLRQWKH$UWLVWVKDOOIXUQLVKWRWKH2ZQHUZLWKDJRRGNQRZOHGJHRI WKHFRQVWUXFWLRQVFKHGXOHDILQDOVFKHGXOHIRUFRPSOHWLRQRIIDEULFDWLRQRUFRQVWUXFWLRQRIWKH:RUN DQGLWVDVVHPEO\HUHFWLRQRULQVWDOODWLRQDWWKH3URMHFWVLWH WKH³:RUN6FKHGXOH ,IWKH:RUNLV WREHLQWHJUDWHGZLWKWKHFRQVWUXFWLRQRIWKH3URMHFWWKH:RUN6FKHGXOHVKDOODOVRLQFOXGHUHOHYDQW LQIRUPDWLRQDVWRWKHVFKHGXOHIRUWKH3URMHFW¶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¶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x 0D\R&LYLF&HQWHU3XEOLF$UW'5$)7-XQH 3DJHRI 3DFNHW3J 'F 'XULQJIDEULFDWLRQDQGLQVWDOODWLRQIRUPDWHULDOVSURFXUHGDQGZRUNFRPSOHWHGDVMXVWLILHGZLWK x DFWXDOUHFHLSWVDQGSD\UROOV0RQWKO\LQYRLFHVWREHVXEPLWWHG,QYRLFHGDPRXQWVVKDOOEH EDVHGXSRQDQGLQFOXGH&RQWUDFWRUV¶$SSOLFDWLRQIRU3D\PHQWDQG$UWLVW¶V,QYRLFH 8SRQILQDODFFHSWDQFHRIWKHZRUNE\WKH2ZQHUDQGUHFHLSWRIDOO'HVLJQ3URSRVDO0DWHULDOV x :RUN&RQVWUXFWLRQ'RFXPHQWVDQG'RFXPHQWDWLRQLGHQWLILHGLQ6HFWLRQQVXQGHUWKLV$JUHHPHQWRULIFRQGLWLRQV EH\RQGWKH$UWLVW¶VFRQWURORU$FWVRI*RGUHQGHUWLPHO\SHUIRUPDQFHRIWKH$UWLVW¶VVHUYLFHVLPSRVVLEOHRU XQH[SHFWHGO\EXUGHQVRPH/LNHZLVHWKH$UWLVWVKDOOJUDQWDUHDVRQDEOHH[WHQVLRQRIWLPHWRWKH2ZQHULQ WKHHYHQWWKHUHLVDGHOD\RQWKHSDUWRIWKH$UWLVWLQSHUIRUPLQJKLVREOLJDWLRQVXQGHUWKLV$JUHHPHQWRULI FRQGLWLRQVEH\RQGWKH2ZQHU¶VFRQWURORU$FWVRI*RGUHQGHUWLPHO\SHUIRUPDQFHRIWKH2ZQHU¶V REOLJDWLRQVXQGHUWKLV$JUHHPHQWLPSRVVLEOHRUXQH[SHFWHGO\EXUGHQVRPH)DLOXUHWRIXOILOOFRQWUDFWXDO REOLJDWLRQVGXHWRFRQGLWLRQVEH\RQGHLWKHUSDUW\ FRQWUROZLOOQRWEHFRQVLGHUHGDEUHDFKRI FRQWUDFWSURYLGHGVXFKREOLJDWLRQVVKDOOEHVXVSHQGHGRQO\IRUWKHGXUDWLRQRIVXFKFRQGLWLRQ 6(&7,21:$55$17,(6 :$55$17,(62)7,7/(7KH$UWLVWUHSUHVHQWVDQGZDUUDQWVWKDW D WKH$UWLVW Q3URSRVDO DQG:RUNDUHVROHO\WKHUHVXOWRIWKHDUWLVWLFHIIRUWRIWKH$UWLVW E H[FHSWDVRWKHUZLVHGLVFORVHGLQZULWLQJ WRWKH2ZQHUWKH$UWLVW¶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imes New Roman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´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¶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¶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¶VRSWLRQEHFRPHLWVSURSHUW\SURYLGHG WKDWQRULJKWWRIDEULFDWHRUH[HFXWHWKH$UW:RUNVKDOOSDVVWRWKH2ZQHUDQGWKH2ZQHUVKDOOFRPSHQVDWH WKH$UWLVWSXUVXDQWWR$UWLFOHIRUDOOVHUYLFHVSHUIRUPHGE\WKH$UWLVWSULRUWRWHUPLQDWLRQRUDWWKH$UWLVW¶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¶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¶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¶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¶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¶V0D\RU'DWH SULQWHGQDPH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB WLWOH $WWHVW ,W¶V&OHUN'DWH SULQWHGQDPH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB WLWOH $UWLVW 3R6KX:DQJ '%$/LYLQJ/HQVHV &DOLIRUQLD6WUHHW %HUNHOH\&$ 'F 3DFNHW3J 'F 3DFNHW3J 'F 3DFNHW3J 'F 0D\R&LYLF&HQWHU$UWZRUN3URSRVDO 3URSRVDO 6KHHW 1DUUDWLYH (VWLPDWH 3URSRVDO (VWLPDWH 0DLQWHQDQFH $ ' ,QFOXGLQJ 3URSRVDO (;+,%,7 7LPHOLQH $UWZRUN %XGJHW /,9,1*/(16(6 3R6KX:DQJ E\ 3DFNHW3J 'F HUVZLWK UFXPVFULEHG RJUDPPHGHYHQWVWRGDZFRPPXQLW\PHPE GLYHUVHLQWHUHVWVWRJDWKHU,WLVWKHFHQWHUIURPZKLFKWKHSHULSKHU\LVFL 6LWH&RQVLGHUDWLRQ 7KH&LYLF&HQWHURIIHUVGLIIHUHQWSU 3DFNHW3J 'F U DVFXOWXUDOFRQVXPHUVDWWKH&HQWHUWKH\PLJKWDVZHOOEHSURYLGHGWKH UWR 7KHMRERIWKH$UWZRUNLVWREHWKHSODWIRUP 7KHVFKHPDWLFOD\RXWRIWKLVDUWZRUNSURSRVDOWDNHVWKHFHQWHUDQG $QGPRVWLPSRUWDQWO\VLQFHIULHQGVDQGVWUDQJHUVDOUHDG\FRPHWRJHWKH VZKLOHWKHUHFROODERUDWLQJWRJHWKH 7KLVIXQFWLRQDOUHODWLRQVKLSEHWZHHQWKH&HQWHUDQGWKH3XEOLFLQVSLUHG 6LWH,QVSLUDWLRQDQGWKH$UWZRUN&RQFHSW FLUFXPIHUHQFHDVV\PEROLFIXQFWLRQRIWKH&LYLF&HQWHU RSSRUWXQLW\WREHFXOWXUDOSURGXFHU FUHDWHDQRQJRLQJSLHFHRIDUW WRPDNHWKLVKDSSHQ 3DFNHW3J 'F &LUFXPFHQWHU/D\RXW 3DFNHW3J 'F 6287+(/(9$,721 $UWZRUN/RFDWLRQ 3/$1 6(&7,21$/(/(9$7,21 3DFNHW3J 'F 3ODQ 3DFNHW3J 'F 6RXWK(OHYDWLRQ 3DFNHW3J 'F 3HUVSHFWLYH9LHZ 3DFNHW3J 'F RUDGYHUVDU\ZRUGVDUHDOOFRQWULEXWLQJ $OOYLVLWRUVIULHQGVDQGVWUDQJHUDOLNH ,WLVDQDFWLYHH[HUFLVHRIDSDUWLFXODU &LYLFDFWLYLW\ZKHUHHYHQFRQWUDVWLQJ FROODERUDWHDFURVVWLPHDQGVRFLDO WRWKHKDUPRQ\RIWKHFRPPXQLW\ RIWKH$UWZRUN V\PSKRQ\ EDUULHUV 3XEOLF,QWHUDFWLRQ DQGWKH'\QDPLF&RQWHQW 9LVLWRUVKDULQJKLVWKRXJKWVDWWKHNLRVNRQ ZKLOHDWWKHVDPHWLPHHQWHUWDLQLQJRWKHU YLVLWRUVDWWKHVFXOSWXUHRXWRQWKHSOD]D 7KHDUWZRUN¶VG\QDPLFFRQWHQWGHSHQGV QGIORRU+HKHDUVKLVZRUGVLQPXVLF ZKHUHKLVZRUGVGULYHDFRUUHVSRQGLQJ HQWLUHO\RQWKHSXEOLF¶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¶VVRXWKIDFLQJFODVVIDFDGH,W JDWKHUVHYHU\FRQWULEXWLQJZRUGDQGWUDQVODWHLWLQWR%UDLOOHOHWWHUGRWVWKHQDUUDQJH WKHPRQWRDPXVLFDOVWDYHDQGLVIHGWKURXJKDYLUWXDOPXVLFER[WRFUHDWHDQLQVWDQW VSRQWDQHRXVPXVLFDOFRPSRVLWLRQ7KHPXVLFLVRXWSXWWKURXJKDKLGGHQVSHDNHULQWKH NLRVN7KHVDPHVFRUHDOVRGULYHVDFRUUHVSRQGLQJFKURPDWLFVFDOHWRHYROYHWKHFRORUV RIWKHRXWGRRU/('OLJKWVWULSVLQOD\HGRQWKHSDYHPHQWDQGFLUFXPVFULEHWKHVFXOSWXUH DWWKHSOD]DEHORZLQSODQYLHZIURPWKHNLRVN 6HHVFKHPDWLFVDQGGUDZLQJVIRUGHWDLOV 3XEOLF3DUWLFLSDWLRQ ವ 7KH&HQWHUZLOOEHFRPHDSODFHIRUDFWLYHSDUWLFLSDWLRQDQGFRQWULEXWLRQIRUWKHSXEOLF 7KHLUWKRXJKWVDQGIHHOLQJVZLOOEHFRPHPXVLFWRHDFKRWKHU¶VHDUVDQGFRORUVWRHDFK RWKHU¶VH\HV ವ $FROODERUDWLRQDFURVVVRFLDODQGWLPHEDUULHUVWRHYROYHWKH&RPPXQLW\6\PSKRQ\ ವ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pVXPp (3URMHFW3HUVRQQHO5pVXPp )7KUHH3URIHVVLRQDO5HIHUHQFHV *:RUN6DPSOHV 6HFWLRQ,,,3URSRVDO(YDOXDWLRQ 3KDVH,0DQGDWRU\5HTXLUHPHQWV 3KDVH,(YDOXDWLRQ)DFWRUV 3KDVH,,0DQGDWRU\5HTXLUHPHQWV V 3KDVH,,(YDOXDWLRQ)DFWRU 6HFWLRQ,9&RQWUDFW &RQWUDFW7HUPLUHPHQWV 'F &RQIOLFWVRI,QWHUHVW (TXDO3D\&HUWLILFDWLRQ:RPHQ¶V(FRQRPLF6HFXULW\$FW :(6$ 5HVSRQVLEOH&RQWUDFWRU0LQLPXP5HTXLUHPHQWV 6HFWLRQ9,,QVWUXFWLRQVIRU6XEPLWWLQJ3URSRVDOV 5HJLVWUDWLRQ 1DUUDWLYHIRUPDWWLQJ )RUPDWWLQJZULWWHQDWWDFKPHQWV +RZWRVWDUWDQDSSOLFDWLRQLQ&D)e 5(6321'(5&(57,),&$7,21 *8,'(72$33/,&$7,21)2506 $(OLJLELOLW\4XHVWLRQQDLUH %5HTXLUHG$WWDFKPHQWV &6WDWHPHQWRI,QWHUHVW '3ULPDU\5HVSRQGHU5pVXPp (3URMHFW3HUVRQQHO5pVXPp )7KUHH3URIHVVLRQDO5HIHUHQFHV *:RUN6DPSOHV *HQHUDO (;+,%,7$1RQ&ROOXVLRQ'HFODUDWLRQ (;+,%,7%$IILUPDWLYH$FWLRQ&HUWLILFDWLRQ 'F 6HFWLRQ,3URMHFW2YHUYLHZ 3XUSRVHRI5)3 7KH0LQQHVRWD6WDWH$UWV%RDUGRQEHKDOIRIWKH&LW\RI5RFKHVWHU KHUHLQDIWHUUHIHUUHGWRDVWKH³2ZQHU´ UHTXHVWV SURSRVDOVIURPSURIHVVLRQDOSXEOLFDUWLVWVRUDUWLVWOHGWHDPV KHUHLQDIWHUUHIHUUHGWRDV³UHVSRQGHUV´RU ³FRQWUDFWRUV´ IRUSHUPDQHQWVLWHVSHFLILFSXEOLFDUWZRUNZLWKLQWKHQHZO\H[SDQGHG0D\R&LYLF&HQWHULQ 5RFKHVWHU0LQQHVRWD 7KHSXUSRVHRIWKLVWZRSKDVH5)3LVWRUHWDLQDFRQWUDFWRUWRGHVLJQIDEULFDWHDQGLQVWDOODSHUPDQHQWVLWHVSHFLILF SXEOLFDUWZRUNZLWKLQWKH0D\R&LYLF&HQWHU([SDQVLRQ'XULQJ3KDVH,RIWKH5)3WKH2ZQHUZLOOHYDOXDWH UHVSRQVHVDFFRUGLQJWRWKHFULWHULDRXWOLQHGLQ6HFWLRQ,,,RIWKLVGRFXPHQW'XULQJ3KDVH,,RIWKH5)3UHVSRQGHUV ZKRVHSURSRVHGTXDOLILFDWLRQVGHPRQVWUDWHLQWKH2ZQHU¶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x RIWKHFLWL]HQVRI5RFKHVWHU &UHDWHVDQLFRQLFLPDJHDQGLGHQWLW\IRUWKHIDFLOLW\WKDWLVUHIOHFWLYHRIWKHUHJLRQDODUHD x &RPSOHPHQWVWKHDUFKLWHFWXUHDQGUHIOHFWVWKHSURJUDPPDWLFXVHRIWKHIDFLOLW\ DQG x &RQWULEXWHVWRWKHORFDOUHJLRQDODQGQDWLRQDOGLDORJXHRQFRQWHPSRUDU\DUW x 2SSRUWXQLWLHVIRU$UWZRUN3ODFHPHQW 7KLVSXEOLFDUWRSSRUWXQLW\LVRSHQWRDUDQJHRISRVVLELOLWLHVWREHSURSRVHGE\FRQWUDFWRUVGXULQJ3KDVH,,RIWKH5)3 7KH$UW7DVN)RUFHKDVLGHQWLILHGWKUHHKLJKO\YLVLEOHDUHDVZKHUHWKHSURMHFWFRXOGEHLQVWDOOHG(DFKORFDWLRQLV GHVFULEHGEHORZ&RQWUDFWRUVPD\SURSRVHWKHLUDUWZRUNLQRQHRUPRUHRIWKHDUHDVVXJJHVWHGEHORZRULQRWKHU DYDLODEOHVSDFHLQWKHQHZFRQYHQWLRQVFHQWHUH[SDQVLRQRUWKHSDWLRWRWKHVRXWKRIWKHH[SDQVLRQ 3UHIXQFWLRQ*DWKHULQJ$UHD 2QWKH6N\ZD\/HYHORIWKHEXLOGLQJLQWKH6RXWKZHVWFRUQHULVD¶[¶[WZR VWRU\VSDFHZLWKIORRUWRURRIFXUWDLQZDOOZLQGRZVWKDWSURYLGHDVFHQLFYLHZRIWKH=XPEURWD5LYHUDQGSDUWVRI GRZQWRZQ5RFKHVWHU 6N\ZDON/REE\ 7KLVLVDPDLQHQWU\WRWKHFRQYHQWLRQFHQWHUYLDWKH&LW\¶VVN\ZDONV\VWHP7KH/REE\LVDWWKH FHQWHURIWKH6N\ZDONHQWU\HOHYDWRUVWRDOOIORRUVDQGDPRQXPHQWDOVWDLUFDVHWRWKH6WUHHW/HYHO7KHFHLOLQJ KHLJKWLVURFHVVWREULQJWKHSURMHFWZLWKLQ x EXGJHW 3DJHRI 3DFNHW3J 'F 3UHSDUHDQGSUHVHQWDVQHFHVVDU\WKHVFKHPDWLFGHVLJQSURSRVDOGHVLJQGHYHORSPHQWDQGFRQVWUXFWLRQ x GRFXPHQWVWRDOOUHOHYDQWUHYLHZLQJERGLHVRUVWDNHKROGHUJURXSVDQGLIDSSOLFDEOHIRUUHOHDVHWRWKHSUHVVDQG SXEOLF DQG )DEULFDWHDQGLQVWDOOWKHDUWZRUNLQDFFRUGDQFHZLWKWKHWHUPVDQGFRQGLWLRQVRIWKHFRQWUDFWDQGWKHDSSURYHG x GHVLJQGHYHORSPHQWDQGFRQVWUXFWLRQGRFXPHQWV 7KH&RQWUDFWRUZLOOZRUNFROODERUDWLYHO\ZLWK$UW7DVN)RUFHDUFKLWHFWHQJLQHHUJHQHUDOFRQWUDFWRUDQG2ZQHU¶V 5HSUHVHQWDWLYHWRHQVXUHWKHDUWZRUNLVGHVLJQHGIDEULFDWHGDQGLQVWDOOHGSURSHUO\ 5HVSRQGHUVDUHHQFRXUDJHGWRSURSRVHDGGLWLRQDOWDVNVRUDFWLYLWLHVLIWKH\ZLOOVXEVWDQWLDOO\LPSURYHWKHUHVXOWVRIWKH SURMHFW7KHVHLWHPVVKRXOGEHVHSDUDWHGIURPWKHUHTXLUHGLWHPVLQWKHSURSRVDO &RQVWUXFWLRQ6FKHGXOH 7KHVFKHGXOHIRUFRQVWUXFWLRQRIWKHQHZDGGLWLRQDQGUHQRYDWLRQVLVDVIROORZV 6WDUW'DWH&RPSOHWLRQ'DWH &RQVWUXFWLRQ±&RQYHQWLRQ&HQWHU $SULO'HFHPEHU $GGLWLRQ 5HQRYDWLRQVRI([LVWLQJ%XLOGLQJ-DQXDU\YDOXDWLRQRIUHVSRQGHU¶VTXDOLILFDWLRQVDQGFRQWUDFWRU¶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e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³4XHVWLRQUHJDUGLQJWKH5)3IRU3XEOLF$UWDW0D\R&LYLF&HQWHU´LQWKHVXEMHFWOLQH$OOUHTXHVWVVKDOOEH VXEPLWWHGLQZULWLQJDQGLQFOXGHWKHQDPHRIWKHTXHVWLRQHUWKHILUPQDPHHPDLODGGUHVVWHOHSKRQHQXPEHUDQGLI DSSOLFDEOHDID[QXPEHU$QRQ\PRXVLQTXLULHVZLOOQRWEHDQVZHUHG $GGHQGDWRWKH5)3 ,IDSSURSULDWHDFKDQJHUHVSRQGLQJWRTXHVWLRQVRUFODULILFDWLRQVPD\EHLVVXHGE\WKH0LQQHVRWD6WDWH$UWV%RDUGLQ WKHIRUPRIDGGHQGDWRWKH5)3$GGHQGDWRWKH5)3ZLOOEHSRVWHGDW KWWS ZZZDUWVVWDWHPQXVRWKHUSHUFHQWFXUUHQWRSSRUWXQLWLHVKWP 6HFWLRQ,,3URSRVDO&RQWHQW $SSOLFDWLRQVPXVWEHUHFHLYHGRQOLQHYLDWKH&D)eV\VWHPQRODWHUWKDQ 30 0'7 7KXUVGD\$SULOEHERUQHE\WKHUHVSRQGHU)DLOXUHWRSURYLGHDQ\RIWKHSXEOLVKHGUHTXLUHPHQWVZLOOUHVXOWLQGLVTXDOLILFDWLRQ 5HVSRQGHUVPXVWVXEPLWDOOPDWHULDOVYLDWKH&D)e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pVXPp $QRXWOLQHRIWKHSULPDU\UHVSRQGHU¶VEDFNJURXQGDQGH[SHULHQFHZLWKH[DPSOHVRIVLPLODUZRUNGRQHE\WKHSULPDU\ UHVSRQGHU$ELRJUDSK\RUDQDXWRELRJUDSK\ZLOOQRWIXOILOOWKHUHTXLUHPHQWIRUWKHSULPDU\UHVSRQGHU¶VUpVXPp (3URMHFW3HUVRQQHO5pVXPp 7KHUpVXPp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imes New Roman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pVXPpDQGSULRUZRUNH[SHULHQFH D$GHTXDWHH[SHULHQFHLQSURGXFWLRQRISXEOLFDUW E3RWHQWLDOWRSURYLGHDUWZRUNWKDWFRQWULEXWHVWRWKHORFDOUHJLRQDODQGQDWLRQDOGLDORJXHRQFRQWHPSRUDU\ DUW DQG F3RWHQWLDOWRSURYLGHDUWZRUNWKDWHQULFKHVDQGGLYHUVLILHVWKH6WDWHRI0LQQHVRWD¶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¶VSURSRVDOVZLOOEHMXGJHG GXULQJ3KDVH,,RIWKLV5)3 0DTXHWWH :ULWWHQQDUUDWLYH ,QVWDOODWLRQ 0DLQWHQDQFHDQGVDIHW\ ,WHPL]HGEXGJHW 3UHOLPLQDU\VFKHGXOH 6HFWLRQ,9&RQWUDFW ,WLVDQWLFLSDWHGWKDWIURPWKHJURXSRIILQDOLVWVRQHFRQWUDFWRUZLOOEHVHOHFWHGWRFRPSOHWHWKHSURMHFW7KHILQDO GHVLJQLVVXEMHFWWRDSSURYDOE\WKH$UW7DVN)RUFHWKH0D\R&LYLF&HQWHU&RPPLVVLRQDQGWKH5RFKHVWHU&LW\ &RXQFLODQGPD\EHVXEMHFWWRUHYLHZE\RWKHUUHOHYDQWERDUGVFRPPLVVLRQVDQGVWDNHKROGHUJURXSV7KH2ZQHU UHVHUYHVWKHULJKWWRVHHNEHVWDQGILQDORIIHUVIURPRQHRUPRUHFRQWUDFWRUV 3DJHRI 3DFNHW3J 'F &RQWUDFW7HUP 7KH2ZQHUGHVLUHVWRHQWHULQWRDFRQWUDFWZLWKWKHVXFFHVVIXOFRQWUDFWRULQ-XO\7KHFRQWUDFWZLOOEHJLQRQWKH GDWHVWDWHGLQWKHFRQWUDFWRUXSRQIXOOH[HFXWLRQRIWKHFRQWUDFWZKLFKHYHULVODWHUDQGZLOOEHVXEVWDQWLDOO\ FRPSOHWHGE\0DUFK3ZLOOEHDYDLODEOHIRUGLVFXVVLRQRUQHJRWLDWLRQ 6HFWLRQ9*HQHUDO5HTXLUHPHQWV 1RQ&ROOXVLRQ'HFODUDWLRQ (DFKUHVSRQGHUPXVWFRPSOHWHWKHDWWDFKHG1RQFROOXVLRQ'HFODUDWLRQDQGLQFOXGHLWZLWKWKHUHVSRQVH &RQIOLFWVRI,QWHUHVW 5HVSRQGHUPXVWSURYLGHDOLVWRIDOOHQWLWLHVZLWKZKLFKLWKDVUHODWLRQVKLSVWKDWFUHDWHRUDSSHDUWRFUHDWHDFRQIOLFW RILQWHUHVWZLWKWKHZRUNWKDWLVFRQWHPSODWHGLQWKLVUHTXHVWIRUSURSRVDOV7KHOLVWVKRXOGLQGLFDWHWKHQDPHRIWKH HQWLW\WKHUHODWLRQVKLSDQGDGLVFXVVLRQRIWKHFRQIOLFW 3URSRVDO&RQWHQWV %\VXEPLVVLRQRIDSURSRVDOUHVSRQGHUZDUUDQWVWKDWWKHLQIRUPDWLRQSURYLGHGLVWUXHFRUUHFWDQGUHOLDEOHIRU SXUSRVHVRIHYDOXDWLRQIRUSRWHQWLDOFRQWUDFWDZDUG7KHVXEPLVVLRQRILQDFFXUDWHRUPLVOHDGLQJLQIRUPDWLRQPD\EH JURXQGVIRUGLVTXDOLILFDWLRQIURPWKHDZDUGDVZHOODVVXEMHFWWKHUHVSRQGHUWRVXVSHQVLRQRUGHEDUPHQWSURFHHGLQJV DVZHOODVRWKHUUHPHGLHVDYDLODEOHE\ODZ 'LVSRVLWLRQRI5HVSRQVHV $OOPDWHULDOVVXEPLWWHGLQUHVSRQVHWRWKLV5)3ZLOOEHFRPHSURSHUW\RIWKH2ZQHUDQGZLOOEHFRPHSXEOLFUHFRUGLQ DFFRUGDQFHZLWK0LQQHVRWD6WDWXWHVVHFWLRQ DIWHUWKHHYDOXDWLRQSURFHVVLVFRPSOHWHG3XUVXDQWWRWKHVWDWXWH FRPSOHWLRQRIWKHHYDOXDWLRQSURFHVVRFFXUVZKHQWKHJRYHUQPHQWHQWLW\KDVFRPSOHWHGQHJRWLDWLQJWKHFRQWUDFWZLWK WKHVHOHFWHGFRQWUDFWRU,IWKHUHVSRQGHUVXEPLWVLQIRUPDWLRQLQUHVSRQVHWRWKLV5)3WKDWLWEHOLHYHVWREHWUDGHVHFUHW PDWHULDOVDVGHILQHGE\WKH0LQQHVRWD*RYHUQPHQW'DWD3UDFWLFHV$FW0LQQHVRWD6WDWXWH 'F ƒ&OHDUO\PDUNDOOWUDGHVHFUHWPDWHULDOVLQLWVUHVSRQVHDWWKHWLPHWKHUHVSRQVHLVVXEPLWWHG ƒ,QFOXGHDVWDWHPHQWZLWKLWVUHVSRQVHMXVWLI\LQJWKHWUDGHVHFUHWGHVLJQDWLRQIRUHDFKLWHP DQG ƒ'HIHQGDQ\DFWLRQVHHNLQJUHOHDVHRIWKHPDWHULDOVLWEHOLHYHVWREHWUDGHVHFUHWDQGLQGHPQLI\DQGKROG KDUPOHVVWKH6WDWHLWVDJHQWVDQGHPSOR\HHVIURPDQ\MXGJPHQWVRUGDPDJHVDZDUGHGDJDLQVWWKH6WDWHLQ IDYRURIWKHSDUW\UHTXHVWLQJWKHPDWHULDOVDQGDQ\DQGDOOFRVWVFRQQHFWHGZLWKWKDWGHIHQVH7KLV LQGHPQLILFDWLRQVXUYLYHVWKH2ZQHU¶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¶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³FRQWUDFW´³FRQWUDFWRU´DQG³FRQWUDFWLQJRIILFHU´PRGLILHGDSSURSULDWHO\WRSUHVHUYHWKH2ZQHU¶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¶V 5HSUHVHQWDWLYHWKHLUDJHQWVDQGFRQVXOWDQWVDVDGGLWLRQDOLQVXUHGV7KHSROLFLHVFDQQRWEHLVVXHGRQD³FODLPV PDGH´EDVLV ³&ODLPVPDGHEDVLV´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¶VQHJOLJHQWDFWVHUURUVRPLVVLRQVRUEUHDFKRIFRQWUDFWDQGRIWKRVHSHUVRQVIRUZKRPWKH&RQVXOWDQW LVOHJDOO\UHVSRQVLEOH '7KH2ZQHUUHVHUYHVWKHULJKWWRLPPHGLDWHO\WHUPLQDWHWKHFRQWUDFWLIWKHFRQWUDFWRULVQRWLQFRPSOLDQFHZLWKWKH LQVXUDQFHUHTXLUHPHQWVDQGUHWDLQVDOOULJKWVWRSXUVXHDQ\OHJDOUHPHGLHVDJDLQVWWKHFRQWUDFWRU$OOLQVXUDQFH SROLFLHVPXVWEHRSHQWRLQVSHFWLRQE\WKH2ZQHUDQGFRSLHVRISROLFLHVPXVWEHVXEPLWWHGWRWKH2ZQHU¶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¶V3UHYDLOLQJ:DJH/DZVDQGZLOOUHTXLUHVXEPLWWDORISD\UROO UHSRUWVWRWKH2ZQHU7KHFRPPHUFLDOSUHYDLOLQJZDJHUDWHVRQDQ\JLYHQGDWHDUHDYDLODEOHRQWKH'HSDUWPHQWRI /DERUDQG,QGXVWU\ZHEVLWH KWWS ZZZGOLPQJRYH/63UHY:DJHDVS$FRS\RIWKHZDJHUDWHVFXUUHQWDWWKH WLPHWKH3URMHFWZDVLVVXHGIRUSURSRVDOVLVLQFOXGHGLQWKH6SHFLILFDWLRQV,WLVWKH&RQWUDFWRUVUHVSRQVLELOLW\WR PDNHVXUHWKH\DUHLPSOHPHQWLQJWKHPRVWFXUUHQWZDJHUDWHV 3UHYDLOLQJ:DJH5HSRUWLQJZLOOEHUHTXLUHGRQWKLVSURMHFW)RUPDQGUHTXLUHPHQWVDUHORFDWHGDW KWWS ZZZPPGDGPLQVWDWHPQXVPQKWPSUHYZDJH )RUPVDUHWREHVXEPLWWHGWRWKH&LW\RI5RFKHVWHUWKURXJKWKH2ZQHU¶V5HSUHVHQWDWLYH $GGLWLRQDOO\WKHSUHYDLOLQJKRXUVRIODERUPD\QRWEHPRUHWKDQHLJKW KRXUVSHUGD\RUPRUHWKDQKRXUVSHU ZHHN3XUVXDQWWR0LQQHVRWD6WDWXWHVQJVKDOOEHLQWKHIRUPDW SUHVFULEHGRQWKHIRUPSURYLGHGWRWKHVXFFHVVIXO9HQGRU $PHULFDQ0DGH6WHHO 7KLVSURMHFWZLOOUHTXLUHWKHXVHRI$PHULFDQPDGHVWHHOSHU0LQQHVRWD/DZV&KDSWHU 6HFWLRQ WKH ³$FW´ &RQWUDFWRUVKDOOVXEPLWGRFXPHQWDWLRQWRWKH2ZQHUSXUVXDQWWKHUHWRDVUHDVRQDEO\UHTXLUHGE\WKH6WDWH 5HFRUGV.HHSLQJDQG5HSRUWLQJ 7KH&RQWUDFWRUVKDOONHHSIXOODQGGHWDLOHGDFFRXQWVDQGH[HUFLVHVXFKFRQWUROVDVPD\EHQHFHVVDU\IRUSURSHU ILQDQFLDOPDQDJHPHQWXQGHUWKLV&RQWUDFW WKHDFFRXQWLQJDQGFRQWUROV\VWHPVVKDOOEHVDWLVIDFWRU\WRWKH2ZQHU 7KH2ZQHUDQGWKH2ZQHU¶VDFFRXQWDQWVDXGLWRUVDQGDJHQWVVKDOOEHDIIRUGHGDFFHVVWRDOORIWKH&RQWUDFWRU¶V UHFRUGVERRNVFRUUHVSRQGHQFHLQVWUXFWLRQVGUDZLQJVUHFHLSWVVXEFRQWUDFWVSXUFKDVHRUGHUVYRXFKHUV PHPRUDQGDDQGRWKHUGDWDUHODWLQJWRWKLV3URMHFWDQGWKH&RQWUDFWRUVKDOOSUHVHUYHWKHVHIRUDSHULRGRIVL[\HDUV IURPWKHGDWHWKDWWKH3URMHFWLVIXOO\FRPSOHWHGDQGSODFHGLQWRRSHUDWLRQRUIRUVXFKORQJHUSHULRGDVPD\EH UHTXLUHGE\ODZSURYLGHGKRZHYHUWKDWLIDFODLPVXLWDFWLRQRUGHPDQGDULVLQJRXWRIWKH&RQWUDFWRU¶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eV\VWHPLVDUHTXLUHPHQWRIWKHDSSOLFDWLRQSURFHVVDQGPXVWEHFRPSOHWHG EHIRUHEHJLQQLQJDQDSSOLFDWLRQ2QOLQHLQVWUXFWLRQVIRUFUHDWLQJD&D)eSURILOHZRUNVDPSOHIRUPDWWLQJ UHTXLUHPHQWVDQGXSORDGLQJZRUNVDPSOHVWR\RXU&D)eSRUWIROLRDUHDYDLODEOHDW KWWSV ZZZFDOOIRUHQWU\RUJIDTSKWPO 5HVSRQGHUVVXEPLWWLQJSURSRVDOVGXULQJ3KDVH,RIWKLV5)3ZLOOXVHWKHLQVWUXFWLRQVLQFOXGHGLQWKLVGRFXPHQW &RQWUDFWRUVVHOHFWHGWRGHYHORSVFKHPDWLFGHVLJQSURSRVDOVGXULQJ3KDVH,,ZLOOVXEPLWDGGLWLRQDOPDWHULDOVGXULQJ 3KDVH,, 1DUUDWLYHIRUPDWWLQJ 5HVSRQGHUVDUHVWURQJO\HQFRXUDJHGWRSUHSDUHQDUUDWLYHWH[WLQDQRWKHUIRUPDW LHLQDZRUGSURFHVVLQJGRFXPHQW DQGWKHQFRS\DQGSDVWHLWLQWRWKHILHOGVZLWKLQWKH&D)eDSSOLFDWLRQ)LHOGVZLWKOHQJWKOLPLWVDUHPHDVXUHGLQ FKDUDFWHUVQRWZRUGV$OOOHQJWKOLPLWVLQFOXGHVSDFHV:RUGSURFHVVRUVIRUPDWULFKWH[WXVLQJXQVHHQIRUPDWWLQJ WDJVFRXQWLQJDJDLQVWWKHFKDUDFWHUOHQJWKOLPLWV'HSHQGLQJRQWKHZRUGSURFHVVRUEURZVHUDQGFRPSOH[LW\RI IRUPDWWLQJWKLVQXPEHURIORVWFKDUDFWHUVZLOOYDU\7RPD[LPL]HWKHQXPEHURIFKDUDFWHUVDYDLODEOHIRUWH[WDYRLG XQQHFHVVDU\IRUPDWWLQJ,IDQHGLWLQJRU³WUDFNFKDQJHV´IXQFWLRQKDVEHHQXVHGPDNHVXUHWRDFFHSWWKHFKDQJHVQRW MXVWKLGHFKDQJHVEHIRUHFXWWLQJDQGSDVWLQJWKHWH[WLQWRD&D)eDSSOLFDWLRQILHOG )RUPDWWLQJZULWWHQDWWDFKPHQWV $SDJHPHDQVDVWDQGDUGîOHWWHUVL]HSDJHSULQWHGRQRQO\RQHVLGH x /HDYHDWOHDVWDPDUJLQDWWKHWRSERWWRPDQGVLGHVRIHDFKSDJH x 8VH7LPHV1HZ5RPDQIRQW RUUHDVRQDEOHVXEVWLWXWH SRLQWW\SHVL]HRUODUJHU x ,QFOXGHWKHUHVSRQGHU¶VQDPHRQWKHWRSRIHDFKSDJH x )LOHVVKRXOGEHQRODUJHUWKDQPEDQGW[WSGIGRFGRF[[OV[OV[RUMSJIRUPDWRQO\ x +RZWRVWDUWDQDSSOLFDWLRQLQ&D)e /RJLQWR\RXU&D)eSURILOHDWKWWSV ZZZFDOOIRUHQWU\RUJLQGH[SKS x 8SORDGZRUNVDPSOHVWR\RXU&D)eSRUWIROLR x 6HOHFW ³$SSO\WR&DOOV´ x (QWHU³5)3IRU3XEOLF$UWDW0D\R&LYLF&HQWHU´LQWRWKHNH\ZRUGVHDUFKER[ x 6HOHFW ³9LHZ0RUH,QIR´WRUHDGDEULHIGHVFULSWLRQRIWKHSURMHFW x 6HOHFW ³$SSO\WRWKLV&DOO´ x &KRRVH³<HV,DJUHH´RU³1R,GRQRWDJUHH´DIWHUUHDGLQJWKHOHJDODJUHHPHQW x $IWHUDUHVSRQGHUDJUHHVWRWKHIROORZLQJOHJDODJUHHPHQWDQDSSOLFDWLRQLVVWDUWHG$FRPSOHWHOLVWRITXHVWLRQVWREH DGGUHVVHGDQGLQIRUPDWLRQQHHGHGWRVXEPLWDSURSRVDOZLOOEHSUHVHQWHGRQWKHQH[WVFUHHQ6HOHFW³6DYH $SSOLFDWLRQ´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eSURILOHLVWKHDXWKRUL]LQJRIILFLDO,IWKH DXWKRUL]LQJRIILFLDO QRWLQWKHOLVWUHJLVWHUWKHDXWKRUL]LQJRIILFLDOLQWR&D)eWKURXJKWKH0\3URILOH VHOHFWLRQRQWKH&D)ePDLQPHQXSULRUWRVXEPLWWLQJWKHSURSRVDODSSOLFDWLRQ 3DJHRI 3DFNHW3J 'F ,IUHVSRQGHULVDILUPWKHVLJQDWXUHRIDFRUSRUDWHRIILFLDOKDYLQJWKHDXWKRULW\WRHQWHULQWROHJDODJUHHPHQWV RQEHKDOIRIWKHILUPLVUHTXLUHG,IUHVSRQGHULVDQLQGLYLGXDOWKHUHVSRQGHULVWKHDXWKRUL]LQJRIILFLDO $VJRYHUQHGE\0LQQHVRWD6WDWXWHVWROXGHDVWDWHPHQWWKDWWKHUHVSRQGHQWLVQRWFXUUHQWO\GHEDUUHGRUVXVSHQGHGE\ [[298,1415,508,1468][11][,I,][Times New Roman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±/LVWWKHWLWOHRIWKHDUWZRUNSUHVHQWHGLQWKHVDPSOH [[296,2100,715,2153][11][,I,][Times New Roman]]$UWZRUNRU9LGHR7LWOH ±/LVWWKHSULPDU\PHGLXPRIWKHDUWZRUNSUHVHQWHGLQWKHVDPSOH,IWKHVDPSOHLVDYLGHROLVWWKH [[296,2153,461,2206][11][,I,][Times New Roman]]0HGLXP RULJLQDOIRUPDWDQGWKHFRS\IRUPDW ±/LVWWKHKHLJKWZLGWKDQGGHSWKRIWKHDUWZRUNLQERWKQXPEHUVDQGXQLWVRIPHDVXUHPHQW)RU [[296,2258,578,2311][11][,I,][Times New Roman]]0HDVXUHPHQWV H[DPSOH ´[´[´,IWKHVDPSOHLVDYLGHROLVWWKHGXUDWLRQLQPLQXWHVDQGVHFRQGV ±3URYLGHWKHWRWDOFRQWUDFWDPRXQW,IWKHSURMHFWZDVVHOILQLWLDWHGHQWHUD]HUR [[298,2364,530,2417][11][,I,][Times New Roman]]3ULFH9DOXH ±/LVWWKH\HDUWKDWWKHDUWZRUNZDVFRPSOHWHG,IWKHVDPSOHLVDZRUNLQSURJUHVVSOHDVHOLVW [[300,2416,599,2469][11][,I,][Times New Roman]]<HDU&RPSOHWHG ³ZRUNLQSURJUHVV´ ±6HOHFWWKHSULPDU\GLVFLSOLQHRIWKHDUWZRUN [[298,2522,663,2575][11][,I,][Times New Roman]]3ULPDU\'LVFLSOLQH 'F :RUNVDPSOHVVKRXOGFRPHDVFORVHDVSRVVLEOHWRWKHRULJLQDOLQWHQGHGDXGLHQFHH[SHULHQFH3URPRWLRQDORU PDUNHWLQJPDWHULDOVDUHQRWDSSURSULDWHZRUNVDPSOHV 7KH$UWV%RDUGH[SHFWVWKDWUHVSRQGHUVZLOOUHVSHFWDQGDFNQRZOHGJHWKHZRUNRIRWKHUV3URSHUDWWULEXWLRQLV UHTXLUHGZKHQDGDSWLQJLQFRUSRUDWLQJRUVLJQLILFDQWO\GUDZLQJXSRQRWKHUV¶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eV\VWHPVKDOOEHUHMHFWHG$OWHUDWLRQVLQFRVWILJXUHVXVHGWR GHWHUPLQHWKHORZHVWSULFHGSURSRVDOVKDOOEHUHMHFWHGXQOHVVLQLWLDOHGLQLQNE\WKHSHUVRQUHVSRQVLEOHIRURU DXWKRUL]HGWRPDNHGHFLVLRQVDVWRWKHSULFHTXRWHG3URRIRIDXWKRUL]DWLRQVKDOOEHSURYLGHGXSRQUHTXHVW7KHXVH RI³ZKLWHRXW´LVFRQVLGHUHGDQDOWHUDWLRQ 3DJHRI 3DFNHW3J 'F (;+,%,7$ 121&2//86,21'(&/$5$7,21 7KHIROORZLQJ1RQ&ROOXVLRQ'HFODUDWLRQVKDOOEHH[HFXWHGE\WKH5HVSRQGHQW &LW\3URMHFW1R ,GRVWDWHXQGHUSHQDOW\RISHUMXU\XQGHU 1DPHRISHUVRQVLJQLQJWKLVGHFODUDWLRQ 86& 'F (;+,%,7% 3DJH 'F (;+,%,7& $87+25,=$7,216,*1$785('2&80(17 7KHUHDUHWKUHH IRUPVDWWDFKHG ,I\RXDUHDFRUSRUDWLRQ ,ID&RUSRUDWH2IILFHULVVLJQLQJUHWXUQRQO\WKH$FNQRZOHGJHPHQWRI&RUSRUDWH$XWKRUL]DWLRQ x ,IVRPHRQHRWKHUWKDQD&RUSRUDWH2IILFHULVVLJQLQJERWKWKH$FNQRZOHGJHPHQWRI x &RUSRUDWLRQ$XWKRUL]DWLRQDQGWKH$XWKRUL]DWLRQRI&RUSRUDWH$JHQWPXVWEHUHWXUQHG ,I\RXDUHD/LPLWHG/LDELOLW\&RPSDQ\ 6LJQDQGUHWXUQWKH$FNQRZOHGJHPHQWRI/LPLWHG/LDELOLW\&RPSDQ\$XWKRUL]HG6LJQDWXUH x ,I\RXDUHD&RPSDQ\RUDQLQGLYLGXDOVLJQLQJRQ\RXUEHKDOIVLJQDQGKDYHQRWDUL]HGWKHVLJQDWXUH SDJHDWWKHHQGRIWKHGRFXPHQW (;+,%,7&±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±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¶VVLJQDWXUHDVDQRIILFLDODFWRIBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB QDPHRISHUVRQ V QDPHRIFRUSRUDWLRQ 7KLVDXWKRUL]DWLRQLVHIIHFWLYHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBDQGUHPDLQVHIIHFWLYHXQWLOVXFKWLPH GDWH DVLWLVUHYRNHGE\WKHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB¶V%RDUGRI'LUHFWRUV1RUHYRFDWLRQRIWKLV QDPHRIFRUSRUDWLRQ DXWKRUL]DWLRQVKDOOEHHIIHFWLYHXQWLOVXFKWLPHDVLWLVILOHGZLWKWKH&LW\&OHUNRIWKH&LW\RI5RFKHVWHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB &KDLUPDQ%RDUGRI'LUHFWRUV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1DPHRI&RUSRUDWLRQ 67$7(2)0,11(627$ &2817<2)2/067(' 2QWKLVGDWHDSSHDUHGEHIRUHPHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBSHUVRQDOO\ QDPHRI&KDLUPDQ%RDUGRI'LUHFWRUV NQRZQWRPHWREHWKH&KDLUPDQRIWKH%RDUGRI'LUHFWRUVRIBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB QDPHRIFRUSRUDWLRQ ZKRKDVLQGLFDWHGWRPHWKDW V KHLVDXWKRUL]HGE\WKH%RDUGRI'LUHFWRUVRI BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBWRH[HFXWHWKHDERYH$XWKRUL]DWLRQRI&RUSRUDWH QDPHRIFRUSRUDWLRQ $JHQWIRUSXUSRVHVRIH[HFXWLQJFRQWUDFWVZLWKWKH&LW\RI5RFKHVWHU 1RWDU\3XEOLFBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0\&RPPLVVLRQ([SLUHVBBBBBBBBBBBBBBBBBBBBB (;+,%,7&±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±3$*(RI 3DJHRI 3DFNHW3J 'F (;+,%,7& $87+25,=$7,216,*1$785('2&80(17 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB &RPSDQ\1DPH$XWKRUL]HG6LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7LWOH'DWH 3URSRVHU¶V(,1XPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1XPEHUXVHGRQ(PSOR\HU¶V4XDUWHUO\ )HGHUDO7D[5HWXUQ 6XEVFULEHGDQGVZRUQWREHIRUHPHWKLV BBBBBGD\RIBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWDU\3XEOLF 0\&RPPLVVLRQ([SLUHVBBBBBBBBBBBBBBBB (;+,%,7&±3$*(RI 3DJHRI 3DFNHW3J 'F y,//d&/E^hZE Zd/&/d , Z 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D 5(92&$%/(3(50,7$1'$*5((0(17 7+,65(92&$%/(3(50,7$*5((0(17 WKLV³$JUHHPHQW´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¶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¶VLQIUDVWUXFWXUH $SSOLFDQWVKDOOKROGWKH&LW\DQG2ZQHUKDUPOHVVE\LQVXUDQFHFRYHUDJHRUE\DJUHHPHQWDQGPXVW GHIHQGDQGLQGHPQLI\WKH&LW\DQG2ZQHUIRUDQ\DQGDOOGDPDJHVRUIURPDQ\DQGDOOFODLPVRUFDXVHV RIDFWLRQPDGHE\DQ\SDUW\UHVXOWLQJIURPWKH$SSOLFDQW¶VXVHRIWKH&LW\¶VULJKWRIZD\XQGHUWKHJUDQWRI DXWKRULW\FRQWDLQHGKHUHLQRUUHVXOWLQJIURPWKH&LW\¶VGHFLVLRQWRUHYRNHWKLVSHUPLW7KLV5HYRFDEOH 3HUPLWDQG$JUHHPHQWLVFRQGLWLRQHGXSRQ2ZQHU¶VH[HFXWLRQRIWKH&RQVHQWRI2ZQHUDWWDFKHGKHUHWR DV([KLELW&ZKLFK&RQVHQWDOORZV2ZQHUWRUHTXHVWUHPRYDORIWKHELNHUDFNDQGELNHVRQGD\V¶ QRWLFH 7KLVSHUPLWLVIRUWKHVSHFLILFELNHUDFNORFDWLRQLQFOXGHGDQGVKRZQKHUHLQ1RDGGLWLRQDOELNHUDFNV PD\EHSODFHGZLWKLQWKHULJKWRIZD\ZLWKRXWDQDPHQGPHQWWRWKLVSHUPLWRUWKHLVVXDQFHRIDGGLWLRQDO SHUPLWV UHORFDWLRQFRVWVRURWKHUGDPDJHVIURPWKH&LW\IRUUHPRYDORIWKHELNHUDFNV %\H[HFXWLQJWKLV$JUHHPHQW$SSOLFDQWDFNQRZOHGJHVLW D HQWHUVLQWRDQGH[HFXWHVWKLV$JUHHPHQW NQRZLQJO\YROXQWDULO\DQGZLOOLQJO\RILWVRZQYROLWLRQZLWKVXFKFRQVXOWDWLRQZLWKOHJDOFRXQVHODVLWGHHPV DSSURSULDWH E KDVKDGDVXIILFLHQWDPRXQWRIWLPHWRFRQVLGHUWKLV$JUHHPHQW¶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¶VXVHRIWKH&LW\¶VULJKWRIZD\XQGHUWKHJUDQWRIDXWKRULW\FRQWDLQHGKHUHLQ RUUHVXOWLQJIURPWKH&LW\¶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³&RQWUDFWRU´ DQG +HQGULFNVRQ,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³'HVLJQ(QJLQHHU´ DQGWRJHWKHU WKH2ZQHU&RQWUDFWRUDQG'HVLJQ(QJLQHHUVKDOOKHUHLQDIWHUFROOHFWLYHO\EHUHIHUUHGWRDVWKH3DUWLHVXQGHU WKHJHQHUDOWHUPVDQGFRQGLWLRQVRIWKLVDJUHHPHQW :,71(66(7+7+$7:+(5($6 2ZQHUKDVUHTXHVWHGSHUPLVVLRQWRDWLWVRZQH[SHQVHFRQVWUXFWSXEOLFLQIUDVWUXFWXUHRU SHUIRUPRWKHUSULYDWHZRUNZLWKLQWKHSXEOLFULJKWRIZD\RUSXEOLFHDVHPHQWVO\LQJZLWKLQRU 6KDQQRQ2DNV6L[WK6XEGLYLVLRQ DEXWWLQJSURSHUW\EHLQJSODWWHGDVDFFRUGLQJWRWKH DSSURYHGSODQVDQGVSHFLILFDWLRQVWKHUHRISUHSDUHGE\'HVLJQ(QJLQHHUJHQHUDOO\UHIHUUHGWR ³ 3XEOLF,PSURYHPHQWVWR6HUYH6KDQQRQ2DNV6L[WK6XEGLYLVLRQ±-´ DVWKHFRYHU VKHHWGHSLFWHGIRUUHIHUHQFHDVDWWDFKHG([KLELWµ$¶DQGKHUHLQDIWHUUHIHUUHGWRDVWKH 3URMHFW &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 3DXO0HLHU D DV2ZQHU¶VUHSUHVHQWDWLYHVKDOOEHWKH3URMHFW0DQDJHUIRUWKH3URMHFW7KH 3URMHFW0DQDJHULVUHVSRQVLEOHIRUDOOFRRUGLQDWLRQRIWKHZRUNHOHPHQWVLQFOXGLQJ3URMHFW FORVHRXW $PHULFDQ E 2ZQHUKDVE\VHSDUDWHGRFXPHQWUHWDLQHGWKHSURIHVVLRQDOVHUYLFHVRI (QJLQHHULQJ7HVWLQJ,QF D0LQQHVRWDFRUSRUDWLRQD0LQQHVRWDFRUSRUDWLRQ KHUHLQ DIWHU³*HRWHFKQLFDO3URIHVVLRQDO´ WRSUHSDUHD*HRWHFKQLFDO5HSRUW KHUHLQDIWHU³5HSRUW´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¶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³2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU´ KDVEHHQUHWDLQHGE\&LW\WKURXJKDVHSDUDWH DUUDQJHPHQWWRSHUIRUPFRQVWUXFWLRQREVHUYDWLRQDQGRYHUVLJKWIRUWKH3URMHFW&RQFXUUHQW ZLWK2ZQHU¶VH[HFXWLRQRIWKLV&RQWUDFW2ZQHUVKDOOSD\WR&LW\WKHDPRXQWRI UHSUHVHQWLQJ2ZQHU¶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¶VFRQILUPDWLRQ WKDWDOODSSOLFDEOHH[SHQVHVLQFXUUHGE\2EVHUYDWLRQ 2YHUVLJKW(QJLQHHUKDYHEHHQ FODLPHGYHULILHGDQGSDLGE\&LW\ I 2ZQHUVKDOOQRWSURYLGHZRUNGLUHFWLRQRULQWHUIHUHZLWK2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU SHUIRUPLQJLWVGXWLHVUHODWHGWRWKH3URMHFW,QWKHHYHQW2ZQHUKDVDQ\FRQFHUQVUHJDUGLQJ 2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU¶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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 'D &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&RQWUDFWRUDJUHHVWRGHIHQGLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\DQGLWV RIILFLDOVRIILFHUVDJHQWVDQGHPSOR\HHVIURPDOOFODLPVEURXJKWE\WKHHPSOR\HHVRU DJHQWVRIWKH2ZQHUDQG&RQWUDFWRURULWVVXEFRQWUDFWRUVDULVLQJRXWRIRUDVDUHVXOWRI DQ\QHJOLJHQWRURWKHUZLVHWRUWLRXVDFWRUIDLOXUHWRDFWLQFRQQHFWLRQZLWKWKHSHUIRUPDQFH RIWKHZRUNWREHSHUIRUPHGSXUVXDQWWRWKLVFRQWUDFWE\WKH2ZQHUDQG&RQWUDFWRULWV HPSOR\HHVDJHQWVDQGVXEFRQWUDFWRUV7KH2ZQHUDQG&RQWUDFWRUDJUHHVWRGHIHQGDQG SD\DOOFRVW VLQGHIHQGLQJWKHVHFODLPVLQFOXGLQJDWWRUQH\¶VIHHV 3DFNHW3J 'D 7KH(QJLQHHUDJUHHVWRLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWVRIILFLDOVRIILFHUVDJHQWV DQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVUHVXOWLQJIURPRUDULVLQJRXWRIWKHQHJOLJHQW DFWLYLWLHVRI7KH(QJLQHHURULWVVXEFRQWUDFWRUVDJHQWVRUHPSOR\HHVXQGHUWKLV DJUHHPHQW7KH(QJLQHHUDJUHHVWRUHLPEXUVHDOOFRVWVRIWKHVHFODLPVLQFOXGLQJ DWWRUQH\¶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¶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¶V$FFHSWDQFH 3DFNHW3J 'E ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨ^ŚĂŶŶŽŶKĂŬƐϲƚŚĨŽƌͲKŽŶƚƌĂĐƚ:ϱϰϰϯ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐ^ŚĂŶŶŽŶKĂŬƐϲƚŚͲKŽŶƚƌĂĐƚ:ϱϰϰϯ 3DFNHW3J 3DFNHW3J 'F 3DFNHW3J 'F ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D &,7<2:1(5&2175$&7 &LW\RI 7+,6$*5((0(17PDGHWKLVBBBBBBBGD\RIBBBBBBBBBBBBBBBEHWZHHQWKH 5RFKHVWHU1RUWKEURRN//& D0LQQHVRWDPXQLFLSDOFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV&LW\ DQG )UDVHU&RQVWUXFWLRQ&R D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ KHUHLQDIWHUUHIHUUHGWRDV2ZQHU DQG :6% $VVRFLDWHV,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³&RQWUDFWRU´ DQGD 0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³'HVLJQ(QJLQHHU´ DQGWRJHWKHUWKH2ZQHU&RQWUDFWRU DQG'HVLJQ(QJLQHHUVKDOOKHUHLQDIWHUFROOHFWLYHO\EHUHIHUUHGWRDVWKH3DUWLHVXQGHUWKHJHQHUDOWHUPV DQGFRQGLWLRQVRIWKLVDJUHHPHQW :,71(66(7+7+$7:+(5($6 2ZQHUKDVUHTXHVWHGSHUPLVVLRQWRDWLWVRZQH[SHQVHFRQVWUXFWSXEOLFLQIUDVWUXFWXUHRU SHUIRUPRWKHUSULYDWHZRUNZLWKLQWKHSXEOLFULJKWRIZD\RUSXEOLFHDVHPHQWVO\LQJZLWKLQRU 5LYHU&HQWHU3OD]D6HFRQG DEXWWLQJSURSHUW\WKDWLVSODWWHGDVDFFRUGLQJWRWKHDSSURYHG SODQVDQGVSHFLILFDWLRQVWKHUHRISUHSDUHGE\'HVLJQ(QJLQHHUJHQHUDOO\UHIHUUHGWRDV ³ 6WRUPVHZHU,PSURYHPHQWVWR6HUYH&DULERX&RIIHHDW5LYHU&HQWHU3OD]D±-´ WKH FRYHUVKHHWGHSLFWHGIRUUHIHUHQFHDVDWWDFKHG([KLELWµ$¶DQGKHUHLQDIWHUUHIHUUHGWRDVWKH 3URMHFW &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 0LNH%HQLNH D DV2ZQHU¶VUHSUHVHQWDWLYHVKDOOEHWKH3URMHFW0DQDJHUIRUWKH3URMHFW7KH 3URMHFW0DQDJHULVUHVSRQVLEOHIRUDOOFRRUGLQDWLRQRIWKHZRUNHOHPHQWVLQFOXGLQJ3URMHFW FORVHRXW :6% E 2ZQHUKDVE\VHSDUDWHGRFXPHQWUHWDLQHGWKHSURIHVVLRQDOVHUYLFHVRI $VVRFLDWHV,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHU³*HRWHFKQLFDO3URIHVVLRQDO´ WR SUHSDUHD*HRWHFKQLFDO5HSRUW KHUHLQDIWHU³5HSRUW´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¶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³2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU´ KDVEHHQUHWDLQHGE\&LW\WKURXJKDVHSDUDWH DUUDQJHPHQWWRSHUIRUPFRQVWUXFWLRQREVHUYDWLRQDQGRYHUVLJKWIRUWKH3URMHFW&RQFXUUHQW ZLWK2ZQHU¶VH[HFXWLRQRIWKLV&RQWUDFW2ZQHUVKDOOSD\WR&LW\WKHDPRXQWRI UHSUHVHQWLQJ2ZQHU¶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¶VFRQILUPDWLRQWKDWDOODSSOLFDEOH H[SHQVHVLQFXUUHGE\2EVHUYDWLRQ 2YHUVLJKW(QJLQHHUKDYHEHHQFODLPHGYHULILHGDQG SDLGE\&LW\ I 2ZQHUVKDOOQRWSURYLGHZRUNGLUHFWLRQRULQWHUIHUHZLWK2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU SHUIRUPLQJLWVGXWLHVUHODWHGWRWKH3URMHFW,QWKHHYHQW2ZQHUKDVDQ\FRQFHUQVUHJDUGLQJ 2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU¶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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 &LW\(QJLQHHU¶VH[HFXWLRQRIDVHSDUDWH&LW\$FFHSWDQFH DQH[DPSOH$FFHSWDQFHLV SURYLGHGIRUUHIHUHQFHRQWKHDWWDFKHG([KLELW &LW\(QJLQHHUPD\DFFHSWWKH2ZQHU¶V 3DFNHW3J 'D 'HVLJQ(QJLQHHU¶VRU&RQWUDFWRU¶VZRUNLQGHSHQGHQWRIWKHFRPSOHWLRQRIWKHUHPDLQLQJ SDUWLHV¶REOLJDWLRQV 9,,121$&&(37$1&( 2ZQHUDQGRU&RQWUDFWRUZLWKLQGD\VDIWHUUHFHLYLQJQRWLFH IURPWKH&LW\RULWVDJHQWWKDWWKH3URMHFWRUDSRUWLRQWKHUHRIKDVQRWEHHQFRQVWUXFWHGLQ DFFRUGDQFHZLWK&LW\VSHFLILFDWLRQVRUKDVQRWEHHQDFFHSWHGRUWKDWDZDUUDQW\FODLPLV EHLQJPDGHVKDOOSHUIRUPVXFKZRUNLGHQWLILHGDVQHHGLQJFRPSOHWLRQRUFRUUHFWLRQZLWKLQ DVFKHGXOHDSSURYHGE\WKH&LW\)DLOXUHWRSHUIRUPWKHZRUNRUSURYLGHDQGDELGHE\D VFKHGXOHPD\EHXVHGDVDEDVLVIRUGHQ\LQJ2ZQHUDQGRU&RQWUDFWRUWKHRSSRUWXQLW\WR FRQVWUXFWRWKHUSXEOLFLPSURYHPHQWSURMHFWVXQGHUWKH&LW\2ZQHU&RQWUDFWIRUPDW 9,,,,1'(3(1'(17&2175$&725 ,WLVH[SUHVVO\XQGHUVWRRGDQGDJUHHGE\DOOSDUWLHVWKDW 2ZQHU&RQWUDFWRU'HVLJQ(QJLQHHUDQG2EVHUYDWLRQ 2YHUVLJKW(QJLQHHUDUH LQGHSHQGHQWFRQWUDFWRUVDQGDOOSHUVRQVHPSOR\HGE\VDLGSDUWLHVLQWKHSHUIRUPDQFHRI DQ\ZRUNRUVHUYLFHVUHTXLUHGRUSURYLGHGIRUKHUHLQVKDOOQRWEHFRQVLGHUHGHPSOR\HHVRI WKH&LW\IRUDQ\SXUSRVHZKDWVRHYHULQFOXGLQJEXWQRWOLPLWHGWRZRUNHU VFRPSHQVDWLRQ FRYHUDJHXQHPSOR\PHQWLQVXUDQFHEHQHILWVVRFLDOVHFXULW\FRYHUDJHUHWLUHPHQW PHPEHUVKLSRUFUHGLWDQGDQ\DQGDOOVXFKFODLPVDQGDQ\DFWRURPLVVLRQRQWKHSDUWRI DQ\SDUW\¶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¶VIHHV 7KH2ZQHUDQG&RQWUDFWRUDJUHHWRGHIHQGLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\DQGLWV RIILFLDOVRIILFHUVDJHQWVDQGHPSOR\HHVIURPDOOFODLPVEURXJKWE\WKHHPSOR\HHVRU DJHQWVRIWKH2ZQHUDQG&RQWUDFWRURULWVVXEFRQWUDFWRUVDULVLQJRXWRIRUDVDUHVXOWRI DQ\QHJOLJHQWRURWKHUZLVHWRUWLRXVDFWRUIDLOXUHWRDFWLQFRQQHFWLRQZLWKWKHSHUIRUPDQFH RIWKHZRUNWREHSHUIRUPHGSXUVXDQWWRWKLVFRQWUDFWE\WKH2ZQHUDQG&RQWUDFWRULWV HPSOR\HHVDJHQWVDQGVXEFRQWUDFWRUV7KH2ZQHUDQG&RQWUDFWRUDJUHHWRGHIHQGDQG SD\DOOFRVW VLQGHIHQGLQJWKHVHFODLPVLQFOXGLQJDWWRUQH\¶VIHHV 3DFNHW3J 'D 7KH(QJLQHHUDJUHHVWRLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWVRIILFLDOVRIILFHUVDJHQWV DQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVUHVXOWLQJIURPRUDULVLQJRXWRIWKHQHJOLJHQW DFWLYLWLHVRI7KH(QJLQHHURULWVVXEFRQWUDFWRUVDJHQWVRUHPSOR\HHVXQGHUWKLV DJUHHPHQW7KH(QJLQHHUDJUHHVWRUHLPEXUVHDOOFRVWVRIWKHVHFODLPVLQFOXGLQJ DWWRUQH\¶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¶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¶V$FFHSWDQFH 3DFNHW3J 'E ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨĂƌŝďŽƵŽĨĨĞĞĂƚZŝǀĞƌĞŶƚĞƌWůĂnjĂĨŽƌͲKŽŶƚƌĂĐƚ:ϱϰϰϴ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐĂƌŝďŽƵŽĨĨĞĞĂƚZŝǀĞƌĞŶƚĞƌWůĂnjĂͲKŽŶƚƌĂĐƚ:ϱϰϰϴ 3DFNHW3J 'F 3DFNHW3J 'F 3DFNHW3J 'F 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D ƌĐDĂƉƌĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐůŽĐĂƚŝŽŶŽĨ^ƵŵŵŝƚWŽŝŶƚĞϱƚŚĨŽƌͲKŽŶƚƌĂĐƚ:ϱϯϲϱ ZĞĨĞƌĞŶĐĞĚƌĂǁŝŶŐƐŚŽǁŝŶŐ^ƵŵŵŝƚWŽŝŶƚĞϱƚŚͲKŽŶƚƌĂĐƚ:ϱϯϲϱ 3DFNHW3J 'E &,7<2:1(5&2175$&7 &LW\RI 7+,6$*5((0(17PDGHWKLVBBBBBBBGD\RIBBBBBBBBBBBBBBBEHWZHHQWKH 5RFKHVWHU$UFRQ/DQG,,, D0LQQHVRWDPXQLFLSDOFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV&LW\ DQG //&(OFRU&RQVWUXFWLRQ D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ KHUHLQDIWHUUHIHUUHGWRDV2ZQHU DQG ,QF:6% $VVRFLDWHV,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³&RQWUDFWRU´ DQGD 0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³'HVLJQ(QJLQHHU´ DQGWRJHWKHUWKH2ZQHU&RQWUDFWRU DQG'HVLJQ(QJLQHHUVKDOOKHUHLQDIWHUFROOHFWLYHO\EHUHIHUUHGWRDVWKH3DUWLHVXQGHUWKHJHQHUDOWHUPV DQGFRQGLWLRQVRIWKLVDJUHHPHQW :,71(66(7+7+$7:+(5($6 2ZQHUKDVUHTXHVWHGSHUPLVVLRQWRDWLWVRZQH[SHQVHFRQVWUXFWSXEOLFLQIUDVWUXFWXUHRU SHUIRUPRWKHUSULYDWHZRUNZLWKLQWKHSXEOLFULJKWRIZD\RUSXEOLFHDVHPHQWVO\LQJZLWKLQRU 6XPPLW3RLQWH)LIWK DEXWWLQJSURSHUW\WKDWLVSODWWHGDVDFFRUGLQJWRWKHDSSURYHGSODQVDQG ³ 3XEOLF VSHFLILFDWLRQVWKHUHRISUHSDUHGE\'HVLJQ(QJLQHHUJHQHUDOO\UHIHUUHGWRDV ,PSURYHPHQWVWR6HUYH6XPPLW3RLQWH)LIWK±-´ WKHFRYHUVKHHWGHSLFWHGIRU UHIHUHQFHDVDWWDFKHG([KLELWµ$¶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 /DUU\)UDQN D DV2ZQHU¶VUHSUHVHQWDWLYHVKDOOEHWKH3URMHFW0DQDJHUIRUWKH3URMHFW7KH 3URMHFW0DQDJHULVUHVSRQVLEOHIRUDOOFRRUGLQDWLRQRIWKHZRUNHOHPHQWVLQFOXGLQJ3URMHFW FORVHRXW :6% E 2ZQHUKDVE\VHSDUDWHGRFXPHQWUHWDLQHGWKHSURIHVVLRQDOVHUYLFHVRI $VVRFLDWHV,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHU³*HRWHFKQLFDO3URIHVVLRQDO´ WR SUHSDUHD*HRWHFKQLFDO5HSRUW KHUHLQDIWHU³5HSRUW´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¶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³2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU´ KDVEHHQUHWDLQHGE\&LW\WKURXJKDVHSDUDWH DUUDQJHPHQWWRSHUIRUPFRQVWUXFWLRQREVHUYDWLRQDQGRYHUVLJKWIRUWKH3URMHFW&RQFXUUHQW ZLWK2ZQHU¶VH[HFXWLRQRIWKLV&RQWUDFW2ZQHUVKDOOSD\WR&LW\WKHDPRXQWRI UHSUHVHQWLQJ2ZQHU¶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¶VFRQILUPDWLRQWKDWDOODSSOLFDEOH H[SHQVHVLQFXUUHGE\2EVHUYDWLRQ 2YHUVLJKW(QJLQHHUKDYHEHHQFODLPHGYHULILHGDQG SDLGE\&LW\ I 2ZQHUVKDOOQRWSURYLGHZRUNGLUHFWLRQRULQWHUIHUHZLWK2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU SHUIRUPLQJLWVGXWLHVUHODWHGWRWKH3URMHFW,QWKHHYHQW2ZQHUKDVDQ\FRQFHUQVUHJDUGLQJ 2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU¶VGXWLHV2ZQHUVKDOOFRPPXQLFDWHGLUHFWO\ZLWKWKH&LW\ (QJLQHHURUKLVKHUGHVLJQHHWRUHVROYHDQ\FRQFHUQV J 'HYHORSPHQW&KDUJH2EOLJDWLRQV2ZQHUVKDOOSD\DOOGHYHORSPHQWUHODWHGFKDUJHV DSSOLFDEOHWRWKH3URSHUW\FRQVLVWHQWZLWKWKHWHUPVRIWKH'HYHORSPHQW$JUHHPHQWZKHUH DSSOLFDEOHDQG&LW\SROLFLHV K )DLOXUHWRGRHYHU\WKLQJUHTXLUHGE\WKLVDJUHHPHQWPD\EHXVHGDVDEDVLVIRUGHQ\LQJ 2ZQHUWKHRSSRUWXQLW\WRSHUIRUPRWKHUSURMHFWVZLWKLQWKH&LW\ L 8QOHVVDOOSXEOLFGUDLQDJH XWLOLW\HDVHPHQWVDQGULJKWRIZD\KDYHSUHYLRXVO\EHHQ GHGLFDWHGIRUDOOSXEOLFLQIUDVWUXFWXUHIRUWKH3URMHFW2ZQHUVKDOOGHGLFDWHDOOHDVHPHQWV DWQRFRVWWR&LW\FRQFXUUHQWZLWKH[HFXWLRQRIWKLV&RQWUDFWE\2ZQHU2ZQHUVKDOOSURYLGH &LW\DOHJDOGHVFULSWLRQDQGH[KLELWGUDZLQJ SUHSDUHGE\DTXDOLILHGSURIHVVLRQDO IRUVDLG HDVHPHQWVDQGVKDOOSD\&LW\DVWDQGDUGGRFXPHQWSUHSDUDWLRQDQGUHFRUGLQJIHH ,,&2175$&725¶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¶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¶VOLDELOLW\LQVXUDQFHVKDOOEHSULPDU\WRDQ\OLDELOLW\LQVXUDQFHPDLQWDLQHG E\WKH&LW\&RQWUDFWRUVKDOODOVRILOHZLWKWKH&LW\&OHUNDFHUWLILFDWHLQGLFDWLQJ LQVXUDQFHLVLQHIIHFWIRUZRUNHUV FRPSHQVDWLRQ,QWKHHYHQWWKDWDOORUDSRUWLRQRI WKHZRUNFRQWHPSODWHGE\WKLVFRQWUDFWVKDOOEHGRQHE\&RQWUDFWRUWKURXJK 3DFNHW3J 'E VXEFRQWUDFWRUVLWVKDOOEHWKHUHVSRQVLELOLW\RI&RQWUDFWRUWRGHWHUPLQHDQGUHTXLUH WKDWVXFKVXEFRQWUDFWRUVPDLQWDLQDXWRPRELOHDQGZRUNHU VFRPSHQVDWLRQ LQVXUDQFHDVVHWIRUWKDERYHDQGWKDWFHUWLILFDWHVWRWKLVHIIHFWDUHILOHGZLWKWKH &LW\&OHUN&RQWUDFWRUVKDOODOVRHQVXUHWKDWLWVVXEFRQWUDFWRUVDUHDZDUHRIDQG DELGHE\WKHSURYLVLRQVRIWKH&LW\2ZQHU&RQWUDFW,QVSHFWLRQVDQG$SSURYDOV UHTXLUHPHQWV$OOSROLFLHVRILQVXUDQFHVKDOOEHHQGRUVHGLQGLFDWLQJWKDWLQWKHHYHQW RIFDQFHOODWLRQRUWHUPLQDWLRQRIDQ\LQVXUDQFHDERYHGHVFULEHG&LW\RI5RFKHVWHU LVWRUHFHLYHWKLUW\GD\V FRPSDQ\ VLQWHQWLRQWRFDQFHO RUWHUPLQDWH,IDQ\LQVXUDQFHFHUWLILFDWHLQGLFDWHVWKHSROLF\VKDOOH[SLUHSULRUWRWKH HQGRIWKHWZR\HDUPDLQWHQDQFHSHULRG&RQWUDFWRUVKDOOSURYLGHDQHZFHUWLILFDWH SULRUWRWKHH[SLUDWLRQGDWHLQGLFDWHGRQWKHRULJLQDOFHUWLILFDWHDQGLQDQ\HYHQWVKDOO PDLQWDLQLQVXUDQFHGXULQJVXFKPDLQWHQDQFHSHULRG )DLOXUHWRGRHYHU\WKLQJUHTXLUHGE\WKLVDJUHHPHQWPD\EHXVHGDVDEDVLVIRU GHQ\LQJ&RQWUDFWRUWKHRSSRUWXQLW\WRFRQVWUXFWRWKHUSXEOLFLPSURYHPHQWSURMHFWV ZLWKLQWKH&LW\ ,9'(6,*1(1*,1((5¶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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 &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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¶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¶VIHHV 7KH(QJLQHHUDJUHHVWRLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWVRIILFLDOVRIILFHUVDJHQWV DQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVUHVXOWLQJIURPRUDULVLQJRXWRIWKHQHJOLJHQW DFWLYLWLHVRI7KH(QJLQHHURULWVVXEFRQWUDFWRUVDJHQWVRUHPSOR\HHVXQGHUWKLV DJUHHPHQW7KH(QJLQHHUDJUHHVWRUHLPEXUVHDOOFRVWVRIWKHVHFODLPVLQFOXGLQJ DWWRUQH\¶VIHHV ;,,:$,9(5 7KHIDLOXUHRIWKH&LW\WRHQIRUFHDQ\SURYLVLRQVRIWKLVFRQWUDFWVKDOOQRW FRQVWLWXWHDZDLYHUE\WKH&LW\RIWKDWRUDQ\RWKHUSURYLVLRQ ;,,,0(5*(5&/$86( 7KLV&RQWUDFWFRQVWLWXWHVWKHILQDOH[SUHVVLRQRIWKHSDUWLHV DJUHHPHQWDQGWKHFRPSOHWHDQGH[FOXVLYHVWDWHPHQWRIWKHWHUPVDJUHHGXSRQ7KLV LQVWUXPHQWVXSHUVHGHVDOOSULRUQHJRWLDWLRQVXQGHUVWDQGLQJVDJUHHPHQWVDQG UHSUHVHQWDWLRQV7KHUHDUHQRRUDORUZULWWHQXQGHUVWDQGLQJVDJUHHPHQWVRU UHSUHVHQWDWLRQVQRWVSHFLILHGKHUHLQ)XUWKHUPRUHQRZDLYHUFRQVHQWPRGLILFDWLRQRU FKDQJHRIWHUPVRIWKLV&RQWUDFWVKDOOELQGHLWKHUSDUW\XQOHVVLQZULWLQJDQGVLJQHGE\ERWK SDUWLHV6XFKZDLYHUFRQVHQWPRGLILFDWLRQRUFKDQJHVKDOOEHHIIHFWLYHRQO\LQWKHVSHFLILF LQVWDQFHDQGIRUWKHVSHFLILFSXUSRVHJLYHQ ;,9&21&855(1&( %\H[HFXWLQJWKLV&RQWUDFWWKH2ZQHU&RQWUDFWRUDQG'HVLJQ (QJLQHHUDFNQRZOHGJHWKDWKHVKHLW D HQWHUVLQWRDQGH[HFXWHVWKLV&RQWUDFWNQRZLQJO\ YROXQWDULO\DQGZLOOLQJO\RIKLVKHULWVRZQYROLWLRQZLWKVXFKFRQVXOWDWLRQZLWKOHJDOFRXQVHO DVKHVKHLWGHHPVDSSURSULDWH E KDVKDGDVXIILFLHQWDPRXQWRIWLPHWRFRQVLGHUWKLV &RQWUDFW¶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¶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imes New Roman]]2FWREHU [[901,1592,1016,1645][11][,,][Times New Roman]] [[1016,1592,2273,1645][1 1][,,][Times New Roman]]RUXQWLODOOREOLJDWLRQVKDYHEHHQVDWLVIDFWRULO\IXOILOOHGZKLFKHYHU [[2274,1592,2404,1645][11][,,][Times New Roman]]RFFXUV ILUVW 6WDWH¶V'XWLHV 7KH6WDWHZLOO 3HUIRUPWKHGXWLHVVSHFLILHGXQGHUWKHKHDGLQJ³5HORFDWLRQ´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imes New Roman]]:DLYHU [[447,360,470,413][11][,I,][Times New Roman]] [[470,360,917,413][11][,,][Times New Roman]],IWKH6WDWHIDLOVWRHQIRU [[917,360,2382,413][1 1][,,][Times New Roman]]FHDQ\SURYLVLRQRIWKLVFRQWUDFWWKDWIDLOXUHGRHVQRWZDLYHWKHSURYLVLRQRULWV ULJKWWRHQIRUFHLW [[300,466,666,518][11][B,I,][Times New Roman]]&RQWUDFW&RPSOHWH [[667,466,690,519][11][,I,][Times New Roman]] [[690,466,2391,519][11][,,][Times New Roman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¶ZULWWHQQRWLFHWRWKHRWKHU SDUW\ 385&+$6(567$7($*(1&< [[225,2251,234,2291][8][,I,][Times New Roman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¶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³&LW\´ 1257+:(67,19(670(1762)/$&5266(//& D:LVFRQVLQOLPLWHGOLDELOLW\FRPSDQ\ KHUHLQDIWHUUHIHUUHGWRDV³ 2ZQHU´ :+(5($62ZQHURZQVDQGGHVLUHVWRGHYHORSUHDOSURSHUW\ZLWKLQWKH&LW\RI5RFKHVWHU :HVW&LUFOH&RPPHUFLDO'HYHORSPHQW 2OPVWHG&RXQW\0LQQHVRWDFRPPRQO\UHIHUUHGWRDVWKH DQGGHVFULEHGZLWKLQ([KLELWµ$¶DWWDFKHGKHUHWRDQGLQFRUSRUDWHGKHUHLQDQGLVKHUHLQDIWHUUHIHUUHG WRDVWKH3URMHFWRUWKH³3URSHUW\´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¶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³&LW\2ZQHU&RQWUDFW´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imes New Roman]]WKH D 7KH&LW\(QJLQHHUKDVGHWHUPLQHGWKH2ZQHUVKDOOSURYLGHDFRPELQDWLRQRIERWK [[375,824,783,881][12][B,I,][Times New Roman]]FRQVWUXFWLRQRISXE [[784,824,845,881][12][B,I,][Times New Roman]]OLF [[848,824,873,881][12][B,I,][Times New Roman]]R [[873,824,900,881][12][B,I,][Times New Roman]]Q [[901,824,917,881][12][B,I,][Times New Roman]] [[918,824,999,881][12][B,I,][Times New Roman]]VLWH [[1001,824,1200,881][12][B,I,][Times New Roman]]5HJLRQDO [[1203,824,1891,881][12][B, I,][Times New Roman]]6WRUP:DWHU0DQDJHPHQWIDFLOLW [[1885,824,1912,881][12][B,I,][Times New Roman]]\ [[1911,824,2261,881][12][B,I,][Times New Roman]]WKHSD\PHQWRI [[375,881,1469,938][12][B,I,][Times New Roman]]D6WRUP:DWHU0DQDJHPHQW3ODQ$UHD&KDUJH [[1485,881,2262,938][12][B,I,][Times New Roman]] 6:03$& IRUWKRVHDUHDVRIWKH [[374,939,564,996][12][B,I,][Times New Roman]]3URSHUW\ [[573,939,595,996][12][B,I,][Times New Roman]] [[589,939,847,996][12][B,I,][Times New Roman]]HVWLPDWHGDV [[849,939,861,996][12][B,I,][Times New Roman]] [[869,939,1075,996][12][B,I,][Times New Roman]]DFUHV [[1083,939,1666,996][12][B,I,][Times New Roman]]WKDWGRQRWGUDLQWRWKHRQ [[1669,939,1685,996][12][B,I,][Times New Roman]] [[1685,939,2261,996][12][B,I,][Times New Roman]]VLWH5HJLRQDO6WRUP:DW HU [[373,996,872,1053][12][B,I,][Times New Roman]]0DQDJHPHQWIDFLOLW\DV [[874,996,927,1053][12][B,I,][Times New Roman]]DG [[924,996,1523,1053][12][B,I,][Times New Roman]]GUHVVHGLQ6HFWLRQEHORZ [[1524,996,1536,1053][12][B,I,][Times New Roman]] [[1538,996,2261,1053][12][B,I,][Times New Roman]]DQGSRWHQWLDOO\WKHFRQVWUXFWLRQRI [[369,1054,586,1111][12][B,I,][Times New Roman]]SULYDWHRQ [[588,1054,604,1111][12][B,I,][Times New Roman]] [[605,1054,2261,1111][12][B,I,][Times New Roman]]VLWHIDFLOLWLHVWRPDLQWDLQSUHVFULEHGGL VFKDUJHUDWHVWR5HJLRQDO3RQGRQ [[375,1110,1281,1167][12][B,I,][Times New Roman]]DEXWWLQJODQGVWRWKHQRUWKRIWKH3URSHUW\ [[1283,1110,1295,1167][12][B,I,][Times New Roman]] IRUPDQDJLQJWKHLQFUHDVHGVWRUPZDWHUUXQRII IURPWKH3URSHUW\ E 2ZQHUVKDOOFRQVWUXFWDSXEOLF5HJLRQDO6WRUP:DWHU0DQDJHPHQW)DFLOLW\ KHUHLQDIWHU UHIHUUHGWRDVWKH5HJLRQDO)DFLOLW\ ZLWKLQWKH3URSHUW\DWLWVRZQFRVWDQGWKURXJKWKH RYHUVLJKWRID&LW\2ZQHU&RQWUDFW7KHGHVLJQLVVXEMHFWWRDSSURYDOE\WKH&LW\(QJLQHHU 7HUPVUHJDUGLQJ2ZQHU¶VLQWHULPRZQHUVKLSDQGPDLQWHQDQFHREOLJDWLRQVIRUWKH5HJLRQDO )DFLOLW\DUHDVIROORZV L 7KHRZQHURI/RW%ORFN:HVW&LUFOH&RPPHUFLDO DVGHSLFWHGRQWKH DWWDFKHG([KLELW%DQGKHUHLQDIWHUUHIHUUHGWRDVWKH/%2ZQHU LV REOLJDWHGWRSURYLGHJHQHUDOPDLQWHQDQFHRI5HJLRQDO)DFLOLW\XQWLOVXFKWLPH RZQHUVKLSDQGWKHPDLQWHQDQFHLVDFFHSWHGE\WKH&LW\VXEMHFWWRWKHWHUPVRI WKLV$JUHHPHQW LL )RUWKHSXUSRVHVRIWKLV$JUHHPHQWWKHSKUDVH³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ò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¶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¶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¶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òRIWKHQHZ52:ZLWKLQWKH3URSHUW\ 1RQ3D\PHQW ,QWKHHYHQW2ZQHUIDLOVWRPDNHSD\PHQWDFFRUGLQJWRWHUPVRIWKLV$JUHHPHQW WKH&LW\PD\FROOHFWWKHXQSDLGDPRXQWSOXVLQWHUHVWDWDUDWHRIPHQWV RXWOLQHGKHUHLQDQGDVPD\EHUHTXLUHGWKURXJKWKHGHYHORSPHQWSODQDSSURYDOSURFHVV &LW\VKDOOUHLPEXUVHWKH2ZQHUIRUWKHFRVWRIDQ\DSSOLFDEOHRYHUVL]LQJRISXEOLFVDQLWDU\VHZHU DQGZDWHUPDLQFRQVLVWHQWZLWK&LW\DQG5RFKHVWHU3XEOLF8WLOLW\6WDQGDUGVDQG3ROLFLHV7KH SD\PHQWRIWKHRYHUVL]LQJVKDOOEHEDVHGRQILQDOTXDQWLWLHVDQG2YHUVL]H3D\PHQW3ROLF\ &LW\VKDOODSSO\DQ\DSSOLFDEOH6:03$&&UHGLWDQG:67,'&UHGLWFRQVLVWHQWZLWKWKHWHUPV RIWKLV$JUHHPHQW 7KH&LW\VKDOOQRWUHVWULFWWKHIXOOGHYHORSPHQWRIWKH3URSHUW\SURYLGHGWKH&LW\UHFHLYHVIXOO SD\PHQWIURP2ZQHURIDOOFKDUJHVRXWOLQHGKHUHLQDQGVXEMHFWWR2ZQHU¶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¶VRUWKH2ZQ HU¶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¶VUHDVRQDEOHFRVWV LQFRUUHFWLQJVDPHSOXVLQWHUHVWDVSURYLGHGLQ6HFWLRQEHORZVKDOOEHSDLGE\WKH GHIDXOWLQJSDUW\WRWKHQRQGHIDXOWLQJSDUW\LPPHGLDWHO\XSRQGHPDQG LL,QMXQFWLYHUHOLHI LLL$FWLRQIRUVSHFLILFSHUIRUPDQFH DQG 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 KHUHLQVKDOOQRWEHGHHPHGDZDL YHURIWKDWSDUW\¶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¶V0D\RU ,WVBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $WWHVW BBBBBBBBBBBBBBBBBBBBBBBBB%\BBBBBBBBBBBBBBBBBBBBBBBBBBBBB ,W¶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µ$¶ /(*$/'(6&5,37,212)7+(3523(57< 3DJHRI 3DFNHW3J 'D (;+,%,7µ$¶ /(*$/'(6&5,37,212)7+(3523(57< 3DJHRI 3DFNHW3J 'D (;+,%,7µ%¶ 352326('35(/,0,1$5<3/$72)7+(3523(57< ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D 0 $<2 :22 '/1 6: % $0% (5/ 16: 0 $<2: 22' 5'6: ,QVWDOO6723VLJQ 7 %$0%(5 9$//(< 6&+22/ 67236LJQ/RFDWLRQ 0D\RZRRG&RPPRQ6W6: WK$YH6: )HHW 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D 352326('67236,*1 (;,67,1*67236,*1 (66(;3$5. 67 1: : 1 7 & 5 +$59(67 % 8 5 67 1: < 67 1: 671: 671: 67 1: 67 1: 67236LJQ/RFDWLRQV $ORQJ(VVH[3DUNZD\1: )HHW 3DFNHW3J 'dƌĂŶƐƉŽƌƚĂƚŝŽŶĂŶĚdƌĂŶƐŝƚZĞĨŝŶĞŵĞŶƚ^ƚƵĚŝĞƐĂƚĂĐŽƐƚŽĨΨϳ͕ϲϯϭ͕ϬϯϮ͘ dŚĞĨŽƵƌ;ϰͿƐƚƵĚŝĞƐǁŝůůďĞĨƵŶĚĞĚĂƐĨŽůůŽǁƐ͗ ŽǁŶƚŽǁŶdƌĂŶƐŝƚŝƌĐƵůĂƚŽƌĂŶĚKƉĞƌĂƚŝŽŶƐ^ƚƵĚLJ:ϴϲϮϭ͖ŽƵŶƚLJdƌĂŶƐŝƚdĂdžΨϭ͕ϵϵϭ͕ϱϯϮ ¾ ŽǁŶƚŽǁŶ^ƚƌĞĞƚhƐĞĂŶĚKƉĞƌĂƚŝŽŶƐ^ƚƵĚLJ:ϴϲϮϯ͖ŽƵŶƚLJdƌĂŶƐŝƚdĂdžΨϮ͕ϴϲϳ͕ϳϬϴ ¾ WĂƌŬŝŶŐĂŶĚdƌĂǀĞůĞŵĂŶĚDĂŶĂŐĞŵĞŶƚ^ƚƵĚLJ:ϴϲϭϴ͖WĂƌŬŝŶŐ ŶƚĞƌƉƌŝƐĞ&ƵŶĚΨϭ͕ϴϭϭ͕ϴϱϰŽƌŽƵŶƚLJ ¾ dƌĂŶƐŝƚdĂdžŝĨƐƵĨĨŝĐŝĞŶƚĨƵŶĚŝŶŐŝƐĂǀĂŝůĂďůĞ͘ ŝƚLJ>ŽŽƉ^ƚƵĚLJ:ϴϲϮϬ͖D^ĂůĞƐdĂdžΨϵϱϵ͕ϵϯϴ ¾ EKd ĨƌŽŵĚŵŝŶŝƐƚƌĂƚŝŽŶ͗ &ƵŶĚŝŶŐŽĨΨϭ͘ϳŵŝůůŝŽŶǁĂƐĂƉƉƌŽǀĞĚďLJƚŚĞDĂŶĚŝƚLJŝŶƚŚĞϮϬϭϲ/W͘dŚĞ ĂĚĚŝƚŝŽŶĂůĨƵŶĚŝŶŐŶĞĞĚĞĚĨŽƌϮϬϭϳĂŶĚϮϬϭϴǁŝůůŶĞĞĚƚŽďĞĂƉƉƌŽǀĞĚďLJƚŚĞDĂŶĚƚŚĞŝƚLJŝŶƚŚĞϮϬϭϳĂŶĚ ϮϬϭϴ/W͘/ĨƚŚĂƚǁĞƌĞŶŽƚƚŽŽĐĐƵƌ͕ƚŚĞĐŽŶƚƌĂĐƚƐǁŽƵůĚĞŶĚŽŶϭϮͬϯϭͬϭϲ͘dŚĞĞƐƚŝŵĂƚĞĚϮϬϭϲĐŽƐƚŝƐΨϭ͘ϵŵŝůůŝŽŶ͘ 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 3DFNHW3J ' 'ͺͺͺ EKdZzWh>/dĂŶLJĂƵƚŽƌĂĐ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ /dzK&ZK, ^d Z LJ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺĂƚĞ͗ͺͺͺͺͺͺͺͺͺͺͺŶĚLJ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺĂƚĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ƌĚĞůů&͘ƌĞĚĞ͕DĂLJŽƌĂƌŽŶ^͘ZĞĞǀĞƐ͕ůĞƌŬ ŽƌƉŽƌĂƚĞ^ŝŐŶĂƚƵƌĞĐŬŶŽǁůĞĚŐĞŵĞŶƚ dŚŝƐŝŶƐƚƌƵŵĞŶƚǁĂƐĂĐŬŶŽǁůĞĚŐĞĚďĞĨŽƌĞŵĞƚŚŝƐͺͺͺͺĚĂLJŽĨͺͺͺͺͺͺͺϮϬϭϲ͕ďLJͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;EĂŵĞͿ ƚŚĞͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺĂŶĚͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺƚŚĞͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;dŝƚůĞͿ;EĂŵĞͿ;dŝƚůĞͿ ŽĨͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ͘ EŽƚĂƌLJ^ĞĂůͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ EKdZzWh>/ 3DFNHW3J ' ' ' 'ŚĂůůďĞƉƌĞƉĂƌĞĚŝŶƐƚĂŶĚĂƌĚ ŶŐůŝƐŚ;h^ͿƵŶŝƚƐĂŶĚůĂŶŐƵĂŐĞ͘hƉŽŶĐŽŵƉůĞƚŝŽŶŽƌƚĞƌŵŝŶĂƚŝŽŶŽĨ ƚŚŝƐŽŶƚƌĂĐƚ͕ƚŚĞ E'/E ZƚƐŚĂůůƉƌŽǀŝĚĞƚŚĞ/dzǁŝƚŚĂĐŽƉLJ͕ŝŶĞůĞĐƚƌŽŶŝĐĨŽƌŵ͕ŽĨĂůůĞůŝǀĞƌĂďůĞƐ͕ƌĞƉŽƌƚƐ͕ ƐƚƵĚŝĞƐ͕ĂŶĚŽƚŚĞƌĚŽĐƵŵĞŶƚƐĚĞǀĞůŽƉĞĚďLJƚŚĞ E'/E ZƚŝŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚƚŚĞŵĂƚƚĞƌƐǁŚŝĐŚĂƌĞƚŚĞ ƐƵďũĞĐƚŽĨƚŚŝƐŽŶƚƌĂĐƚ͘^ƵĐŚŵĂƚĞƌŝĂůƐƐŚĂůůďĞƉƌŽǀŝĚĞĚŝŶĂŶĞůĞĐƚƌŽŶŝĐĨŽƌŵĂƚĐŽŵƉĂƚŝďůĞǁŝƚŚŽĨƚŚĞ ĨŽůůŽǁŝŶŐ͕ĂƐĂƉƉƌŽƉƌŝĂƚĞ͗ ͘EŽĞůŝǀĞƌĂďůĞƐƉƌŽĚƵĐĞĚŝŶǁŚŽůĞŽƌŝŶƉĂƌƚƵŶĚĞƌƚŚŝƐŽŶƚƌĂĐƚƐŚĂůůďĞƚŚĞƐƵďũĞĐƚŽĨĂŶĂƉƉůŝĐĂƚŝŽŶĨŽƌ ĐŽƉLJƌŝŐŚƚďLJŽƌŽŶďĞŚĂůĨŽĨƚŚĞ E'/E Z͕ŝƚƐƐƵďĐŽŶƚƌĂĐƚŽƌƐ͕ƚŚĞŝƌĂŐĞŶƚƐŽƌĞŵƉůŽLJĞĞƐ͘ &͘ĞůŝǀĞƌĂďůĞƐƉƌŽǀŝĚĞĚƚŽƚŚĞ/dzƉƵƌƐƵĂŶƚƚŽƚŚŝƐŽŶƚƌĂĐƚĂƌĞŶŽƚŝŶƚĞŶĚĞĚŽƌƌĞƉƌĞƐĞŶƚĞĚďLJƚŚĞ E'/E Z ƚŽďĞƐƵŝƚĂďůĞĨŽƌƵƐĞŽƌƌĞƵƐĞďLJƚŚĞ/dzŽƌŽƚŚĞƌƐŽŶĞdžƚĞŶƐŝŽŶƐŽĨƚŚĞtŽƌŬŽƌŽŶĂŶLJŽƚŚĞƌƉƌŽũĞĐƚ͕ǁŝƚŚŽƵƚ ǁƌŝƚƚĞŶǀĞƌŝĨŝĐĂƚŝŽŶŽƌĂĚĂƉƚĂƚŝŽŶďLJ E'/E Z͕ĞdžĐĞƉƚĨŽƌƚŚŽƐĞĞůŝǀĞƌĂďůĞƐƉƌĞƉĂƌĞĚĂƐ/dzƐƚĂŶĚĂƌĚƐ͘dŚŝƐ ƉƌŽǀŝƐŝŽŶĚŽĞƐŶŽƚƉƌŽŚŝďŝƚƚŚĞ/dzĨƌŽŵƵƚŝůŝnjŝŶŐƚŚĞĚŽĐƵŵĞŶƚƐŝŶĂŶLJŵĂŶŶĞƌǁŚŝĐŚƚŚĞ/dzĚĞĞŵƐ ĂƉƉƌŽƉƌŝĂƚĞ͘ŶLJƵƐĞŽƌƌĞƵƐĞǁŝƚŚŽƵƚǁƌŝƚƚĞŶǀĞƌŝĨŝĐĂƚŝŽŶŽƌĂĚĂƉƚĂƚŝŽŶďLJŽŶƐƵůƚĂŶƚǁŝůůďĞĂƚƚŚĞ/dz͛ƐŽƌ ŽƚŚĞƌ͛ƐƐŽůĞƌŝƐŬĂŶĚǁ ŝƚŚŽƵƚůŝĂďŝůŝƚLJƚŽ E'/E Z͘ 3DFNHW3J ' ƐƵĐŚƐŽĨƚǁĂƌĞ͕ĂƚŶŽĂĚĚŝƚŝŽŶĂůĐŽƐƚƐĂďŽǀĞĐŽŵƉĞŶƐĂƚŽŶƉĂŝĚƚŽ E'/E ZĂŶĚŝƚƐƐƵďĐŽŶƚƌĂĐƚŽƌƐƵŶĚĞƌ ƌƚŝĐůĞϯ͕ŚĞƌĞŽĨ͕ŝƌƌĞƐƉĞĐƚŝǀĞŽĨƚŚĞŶƵŵďĞƌŽĨĐŽƉŝĞƐƵƐĞĚ͘ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D 7RP0F&RQQHOO'ZLJKW WK ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( OLQHRI/RW%ORFN&OLIIVLGH $GGLWLRQ2OPVWHG&RXQW\0LQQHVRWDFRQGLWLRQHGRQ0D\R&OLQLFIXOO\H[HFXWLQJDQGUHWXUQLQJWKH$JUHHPHQW WR+ROG+DUPOHVVDQGWKH5HYRFDEOH3HUPLWDQG$JUHHPHQW 3DFNHW3J ' D 5(92&$%/(3(50,7$1'$*5((0(17 7+,65(92&$%/(3(50,7$*5((0(17 WKLV³$JUHHPHQW´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¶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¶VLQIUDVWUXFWXUH 2ZQHUVKDOOKROGWKH&LW\KDUPOHVVE\LQVXUDQFHFRYHUDJHRUE\DJUHHPHQWDQGPXVWGHIHQGDQG LQGHPQLI\WKH&LW\IRUDQ\DQGDOOGDPDJHVRUIURPDQ\DQGDOOFODLPVRUFDXVHVRIDFWLRQPDGHE\DQ\ SDUW\UHVXOWLQJIURPWKH2ZQHU¶VXVHRIWKH&LW\¶VSURSHUW\XQGHUWKHJUDQWRIDXWKRULW\FRQWDLQHGKHUHLQRU UHVXOWLQJIURPWKH&LW\¶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¶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¶VXVHRIWKH&LW\¶VULJKWRIZD\XQGHUWKHJUDQWRIDXWKRULW\FRQWDLQHGKHUHLQRUUHVXOWLQJIURP WKH&LW\¶VGHFLVLRQWRUHYRNHWKHUHYRFDEOHSHUPLW 0$<2&/,1,& D0LQQHVRWDQRQSURILWFRUSRUDWLRQ %\ ,WV %\ ,WV 67$7(2)BBBBBBBBBBBB 66 &2817<2)BBBBBBBBBB 2QWKLVBBBGD\RIBBBBBBBBBBBBBBBBBBBBEHIRUHPHDQRWDU\SXEOLFZLWKLQDQGIRUVDLGFRXQW\ SHUVRQDOO\DSSHDUHGBBBBBBBBBBBBBBBBBBBBBBBBBDQGBBBBBBBBBBBBBBBBBBBBBBBBBWKH 0$<2&/,1,& BBBBBBBBBBBBBBBBBBBBBBBBBDQGBBBBBBBBBBBBBBBBBBBBBBBBBBRID0LQQHVRWDQRQ SURILWFRUSRUDWLRQSHUVRQDOO\NQRZQWRPHWREHWKHSHUVRQVGHVFULEHGLQWKHIRUHJRLQJLQVWUXPHQWDQG DFNQRZOHGJHGWKDWWKH\H[HFXWHGWKHVDPHDVWKHLUIUHHZLOODQGRQEHKDOIRIWKHQRQSURILWFRUSRUDWLRQ 127$5<38%/,& '2&80(1735(3$5('%< 52&+(67(538%/,&:25.6'(3$570(17 675((76(5220 7+ 52&+(67(501 3DFNHW3J ' D (;+,%,7& $&.12:/('*(0(172)121352),7&25325$7,21 $87+25,=$7,216,*1$785( 67$7(2)BBBBBBBBBBBBBBBBBBBB &2817<2)BBBBBBBBBBBBBBBBBB 2QWKLVBBBBBBBBBBBBBBBBBGD\RIBBBBBBBBBBBBBBBBBBBBBBBBBEHIRUHPH DSSHDUHGBBBBBBBBBBBBBBBBBBBBBBBBBWRPHSHUVRQDOO\NQRZQZKREHLQJ 1DPHRI2IILFHU E\PHGXO\VZRUQGLGVD\WKDWKHVKHLVWKHBBBBBBBBBBBBBBBBBBBBBBBBBRI BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1DPHRI&RUSRUDWLRQ $GGUHVV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBDQRQSURILWFRUSRUDWLRQ DQGWKDWVDLG &LW\ 6WDWH =LS&RGH LQVWUXPHQWZDVH[HFXWHGRQEHKDOIRIVDLGQRQSURILWFRUSRUDWLRQE\DXWKRULW\RILWV%RDUG RI'LUHFWRUV DQGWKDWVDLGBBBBBBBBBBBBBBBBBBBBBBBBBDFNQRZOHGJHGH[HFXWLRQ 1DPHRI2IILFHU RIVDLGLQVWUXPHQWWREHWKHIUHHDFWDQGGHHGRIVDLGQRQSURILWFRUSRUDWLRQ 1RWDU\3XEOLF &RXQW\ 0\&RPPLVVLRQ([SLUHV 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 0,2012,163,2064][11][B,I,][Arial]] [[150,2064,2352,2121][12][B,I,][Arial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHDUHVROXWLRQ [[150,2122,1060,2179][12][B,I,][Arial]]ZLWKILQGLQJVVXSSRUWLQJWKHLUGHFLVLRQ [[1061,2126,1074,2178][11][B,I,][Arial]] 3DFNHW3J )D %XUKRS.DUO )URP 0LFKDHO%XVFK 0%XVFK#SDUDPDUNXV! 6HQW :HGQHVGD\-XQH 30 7R %XUKRS.DUO 6XEMHFW 5H 53/$77KH8SWRZQ WůĞĂƐĞĐŽŶƚŝŶƵĞƵŶƚŝůƵŐ͘ϭƉĞƌLJŽƵƌƌĞĐŽŵŵĞŶĚĂƚŝŽŶ͘ dŚĂŶŬƐ͘ DŝĐŚĂĞůƵƐĐŚ WƌŝŶĐŝƉĂů WĂƌĂŵĂƌŬZĞĂů ƐƚĂƚĞ^ĞƌǀŝĐĞƐ DĂŝŶ͗ϱϬϳ Ͳ Ϯϴϱ Ͳ ϱϬϴϮ ŝƌĞĐƚ͗ϱϬϳ Ͳ ϮϵϮ Ͳ ϴϮϮϵ DŽďŝůĞ͗ϱϬϳ Ͳ Ϯϱϵ Ͳ ϴϮϰϰ &Ădž͗ϱϬϳ Ͳ Ϯϴϵ Ͳ ϬϮϯϴ ŵĂŝů͗ŵďƵƐĐŚΛƉĂƌĂŵĂƌŬ͘ƵƐ KŶ:ƵŶϮϵ͕ϮϬϭϲ͕ĂƚϭϮ͗ϭϲWD͕ƵƌŚŽƉ<ĂƌůфďƵƌŚŽƉ͘ŬĂƌůΛK͘K>D^d ͘DE͘h^хǁƌŽƚĞ͗ ŐĂŝŶ͕ƉůĞĂƐĞƐĞŶĚĂŶĞŵĂŝůƌĞƋƵĞƐƚŝŶŐĂĐŽŶƚŝŶƵĂŶĐĞƚŽƵŐƵƐƚϭ ƐƚĨŽƌƚŚĞ&ŝŶĂůWůĂƚ͘ /ĨLJŽƵŚĂǀĞƋƵĞƐƚŝŽŶƐ͕ƉůĞĂƐĞůĞƚŵĞŬŶŽǁ͘WůĂŶŶŝŶŐ^ƚĂĨĨĐĂŶŶŽƚŽƚŚĞƌǁŝƐĞƌĞĐŽŵŵĞŶĚĂƉƉƌŽǀĂůŽĨƚŚĞ &ŝŶĂůWůĂƚďĞĐĂƵƐĞŽĨƚŚĞDŶKdŝƐƐƵĞĂŶĚƚŚĞƉƌŝǀĂƚĞĞĂƐĞŵĞŶƚŝƐƐƵĞ͘dŚĞ&ŝŶĂůWůĂƚŝƐƐƵĞĚŽĞƐŶŽƚ ĚĞůĂLJƚŚĞ&ŝŶĂůWůĂŶĂŶĚĚŽĞƐŶŽƚƌĞĨůĞĐƚŶĞŐĂƚŝǀĞůLJŽŶĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨƚŚĞ&ŝŶĂůWůĂŶďLJWůĂŶŶŝŶŐ^ƚĂĨĨ͘/ ǁŽƵůĚŶĞĞĚƚŚĞĐŽŶƚŝŶƵĂŶĐĞĞŵĂŝůĂƐƐŽŽŶĂƐLJŽƵĐĂŶƐĞŶĚŝƚ͘ dŚĂŶŬLJŽƵ͕ <Ăƌů:͘ƵƌŚŽƉʹWůĂŶŶĞƌ ZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ WŚŽŶĞ͗;ϱϬϳͿϯϮϴ Ͳ ϳϭϬϰ ŵĂŝů͗ďƵƌŚŽƉ͘ŬĂƌůΛĐŽ͘ŽůŵƐƚĞĚ͘ŵŶ͘ƵƐ , Z 'ŝǀĞƵƐLJŽƵƌŝŶƉƵƚŽŶƚŚĞZŽĐŚĞƐƚĞƌŽŵƉƌĞŚĞŶƐŝǀĞWůĂŶhƉĚĂƚĞ LPDJHSQJ! 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( *UDGLQJ 'UDLQDJH3ODQDSSURYDOLVUHTXLUHGSULRUWREXLOGLQJSHUPLWDSSURYDO ([HFXWLRQRID5HYRFDEOH3HUPLW$JUHHPHQWZLOOEHUHTXLUHGIRUDQ\SURSRVHGSULYDWHLPSURYHPHQWVZLWKLQWKH SXEOLFULJKWRIZD\ 5HFRQVWUXFWLRQRIWKHQRUWKVRXWKDOOH\LVUHTXLUHGDWWKH2ZQHU¶VH[SHQVHFRQFXUUHQWZLWKWKHGHYHORSPHQWRIWKL V SURMHFW ([HFXWLRQRID&LW\2ZQHU&RQWUDFWLVUHTXLUHGSULRUWRFRQVWUXFWLRQUHFRQVWUXFWLRQRISXEOLFLQIUDVWUXFWXUHWRVHUYH WKLVGHYHORSPHQW$Q\SURSRVHGSXEOLFLPSURYHPHQWVO\LQJZLWKLQ2ZQHUVSULYDWHSURSHUW\ZLOOUHTXLUHGHGLFDWLRQRI SXEOLFHDVHPHQWVSULRUWRFRQVWUXFWLRQ 7KUHH)LQDO6LWH3ODQVVKDOOEHUHVXEPLWWHGWKDWFRUUHFWVWKHUHTXLUHGUHDU\DUGVHWEDFNUHTXLUHPHQW UHTXLUHG PLQLPXPUHDU\DUGVHWEDFNLVHLJKWIHHW ¶ 7KHZHVW\DUGLVDVLGHVWUHHWVLGH\DUGDQGWKHVHWEDFNUHTXL UHPHQWIRUD VLGHVWUHHWVLGH\DUGLVòWKHUHTXLUHPHQWRIWKHIURQW\DUG7KHHOHFWURQLFFRS\VKDOODOVREHSURYLGHG &281&,/$&7,215(48(67(' [[148,2970,2149,3022][11][B,I,][Times New Roman]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHDUHVROXWLRQHLWKHUDSSURYL [[2150,2970,2221,3022][11][B,I,][Times New Roman]]QJ [[150,3023,2389,3075][11][B,I,][Times New Roman]]DSSURYLQJZLWKFRQGLWLRQVRUGHQ\LQJWKH&RQGLWLRQDO8VH3HUPLWUHTXHVWEDVHGXSRQWKHFULWHULDLQFOXGHGLQWKHVWDII [[150,3075,276,3127][11][B,I,][Times New Roman]]UHSRUW 3DFNHW3J )D $HULDO0DSRI ,QFHQWLYH'HYHORSPHQW)LQDO3ODQ5&83E\5RQDOG0F'RQDOG+RXVH7KHDSSOLFDQWLV SURSRVLQJWRFRQVWUXFWDVWRU\XQLWWUDQVLHQWIDFLOLW\DGGLWLRQ 5RQDOG0F'RQDOG+RXVH 7KH SURSHUW\LVZLWKLQWKH&'&5(6 &HQWUDO'HYHORSPHQW&RUH5HVLGHQWLDO =RQLQJ'LVWULFWDQGLV ORFDWHGDWWKHFRUQHURI WK$YHQXH6:DQGQG6WUHHW6: &LW\&RXQFLO:DUG 0LFKDHO:RMFLN 6W6: 6,7( /HJHQG &HQWHUOLQHV 5B&83B)LQDOB%XLOGLQJ)ORRUV 5B&83B)LQDOB3DUFHO )HHW 3DUFHOV 6W6: q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q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¶VILQGLQJVIRU6XEGLYLVLRQ% 7KH&RXQFLODSSURYHGWKHSUHOLPLQDU\SODQRQ0D\ZLWKWKH&RPPLVVLRQ¶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imes New Roman]])URQW<DUG [[560,359,693,412][11][,I,][Times New Roman]] 1RUWK [[841,359,896,412][11][,,][Times New Roman]] DWWKHED\ 9DFDWLRQ [[465,412,558,465][11][,I,][Times New Roman]]6LGH [[559,412,571,465][11][,I,][Times New Roman]] [[1997,412,2161,465][11][B,,][Times New Roman]]3HWLWLRQ 6XEPLWWHG [[368,520,667,573][11][,I,][Times New Roman]]6LGH<DUG (DVW [[841,520,896,573][11][,,][Times New Roman]] ,QGLFDWRU [[457,1208,566,1261][11][,I,][Times New Roman]]1RUWK [[566,1208,578,1261][11][,I,][Times New Roman]] [[822,1208,914,1261][11][,,][Times New Roman]]6% [[914,1208,926,1261][11][,,][Times New Roman]] [[1219,1208,1658,1261][11][,,][Times New Roman]]%OYG7UHHV5HTXLUHG [[1658,1208,1670,1261][11][,,][Times New Roman]] [[1670,1208,1693,1261][11][,,][Times New Roman]] [[1692,1208,1704,1261][11][,,][Times New Roman]] [[1969,1208,2000,1261][11][,,][Times New Roman]]& [[1999,1208,2144,1261][11][,,][Times New Roman]]RPSOLHV [[2145,1208,2157,1261][11][,,][Times New Roman]] [[2156,1208,2179,1261][11][,,][Times New Roman]] [[2179,1208,2191,1261][11][,,][Times New Roman]] 6HHODQGVFDSH3ODQIRU%XIIHU\DUG3URSRVDO [[460,1335,565,1388][11][,I,][Times New Roman]]6RXWK [[564,1335,576,1388][11][,I,][Times New Roman]] [[854,1335,882,1388][11][,,][Times New Roman]]( [[882,1335,894,1388][11][,,][Times New Roman]] [[1067,1335,1575,1388][11][,,][Times New Roman]]:DLYHG 6XEG $ [[1576,1335,1591,1388][11][,,][Times New Roman]] [[1590,1335,1602,1388][11][,,][Times New Roman]] [[1602,1335,1843,1388][11][,,][Times New Roman]]&OLII6FUHHQV [[1843,1335,1855,1388][11][,,][Time s New Roman]] [[1986,1335,2017,1388][11][,,][Times New Roman]]& [[2016,1335,2161,1388][11][,,][Times New Roman]]RPSOLHV [[2161,1335,2173,1388][11][,,][Times New Roman]] [[469,1399,554,1452][11][,I,][Times New Roman]](DVW [[553,1399,565,1452][11][,I,][Times New Roman]] [[817,1399,917,1452][11][,,][Times New Roman]]1RQH [[918,1399,930,1452][11][,,][Times New Roman]] [[1368,1399,1543,1452][11][,,][Times New Roman]]&RPSOLHV [[1543,1399,1555,1452][11][,,][Times New Roman]] [[1986,1399,2017,1452][11][,,][Times New Roman]]& [[2016,1399,2161,1452][11][, ,][Times New Roman]]RPSOLHV [[2161,1399,2173,1452][11][,,][Times New Roman]] [[468,1464,558,1517][11][,I,][Times New Roman]]:HVW [[557,1464,569,1517][11][,I,][Times New Roman]] [[844,1464,891,1517][11][,,][Times New Roman]]6 [[892,1464,904,1517][11][,,][Times New Roman]] [[1201,1464,1676,1517][11][,,][Times New Roman]])LYH%OYG7UHHV5HTXLUHG [[1676,1464,1688,1517][11][,,][Times New Roman]] [[1687,1464,1710,1517][11][,,][Times New Roman]] [[1710,1464,1722,1517][11][,,][Times New Roman]] [[1969,1464,2000,1517][11][,,][Times New Roman]]& [[1999,1464,2144,1517][11][,,][Times New Roman]]RPSOLHV [[2145,1464,2157,1517][11][,,][Times New Roman]] [[2156,1464,2179,1517][11][,,][Times New Roman]] [[2179,1464,2191,1517][11][,,][Times New Roman]] )$5 [[454,1593,573,1646][11][,I,][Times New Roman]]7\SH, [[570,1593,582,1646][11][,I,][Times New Roman]] [[839,1593,896,1646][11][,,][Times New Roman]] [[897,1593,909,1646][11][,,][Times New Roman]] [[1450,1593,1462,1646][11][,,][Times New Roman]] [[1461,1593,1473,1646][11][,,][Times New Roman]] [[2074,1593,2086,1646][11][,,][Times New Roman]] [[439,1658,588,1711][11][,I,][Times New Roman]]7\SH,,, [[585,1658,597,1711][11][,I,][Times New Roman]] [[839,1658,896,1711][11][,,][Times New Roman]] [[897,1658,909,1711][11][,,][Times New Roman]] [[1162,1658,1748,1711][11][,,][Times New Roman]] 7\SH,,,3URFHVV5HTXLUHG [[1749,1658,1761,1711][11][,,][Times New Roman]] [[1986,1658,2017,1711][11][,,][Times New Roman]]& [[2016,1658,2161,1711][11][,,][Times New Roman]]RPSOLHV [[2161,1658,2173,1711][11][,,][Times New Roman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oman]]QG &$FFHVV(IIHFW [[762,1177,1360,1230][11][,I,][Times New Roman]]7KHSURMHFWSURSRVHVUHPRYLQJ [[1366,1177,1431,1230][11][,I,][Times New Roman]]RQH [[1432,1177,1444,1230][11][,I,][Times New Roman]] [[1448,1177,1758,1230][11][,I,][Times New Roman]]FXUUHQWDFFHVVS [[1759,1177,1989,1230][11][,I,][Times New Roman]]RLQWDORQJ [[2020,1177,2032,1230][11][,I,][Times New Roman]] [[2036,1177,2257,12 30][11][,I,][Times New Roman]]6W6:7KH DOOH\ZD\ZLOOEHXVHGDVDQDFFHVVDQG5RQDOG0F'RQDOG+RXVH¶VH[LVWLQJD[[1856,1229,2257,1282][11][,I,][Times New Roman]]FFHVVZLOOFRQWLQXHWR [[450,1282,2257,1335][11][,I,][Times New Roman]]EHXVHG7KH&LW\(QJLQHHUKDVZDLYHGWKHUHTXLUHPHQWIRUDWUDIILFLPSDFWUHSRUWRUVWXG\IRUWKLV [[450,1335,525,1388][11][,I,][Times New Roman]]VLWH [[2099,1436,2129,1470][7][,I,][Times New Roman]]QG '3HGHVWULDQ&LUFXODWLRQ [[931,1440,1933,1493][11][,I,][Times New Roman]]3HGHVWULDQDFFHVVLVORFDWHGDORQJWKHSXEOLFVLGHZDON [[1932,1440,2099,1493][11][,I,][Times New Roman]]VDORQJ [[2128,1440,2140,1493][11][,I,][Times New Roman]] [[2140,1440,2258,1493][11][,I,][Times New Roman]]6WUHHW [[641,1489,662,1523][7][,I,][Times New Roman]]WK [[450,1493,640,1546][11][,I,][Times New Roman]]6:DQG [[663,1493,675,1546][11][,I,][Times New Roman]] [[678,1493,1060,1546][11][,I,][Times New Roman]]$YHQXH6:RQWKH [[1068,1493,2257,1546][11][ ,I,][Times New Roman]]QRUWKDQGZHVWRIWKHSURSRVHGEXLOGLQJDQGH[LVWLQJ5RQDOG [[1674,1542,1704,1576][7][,I,][Times New Roman]]QG [[2224,1542,2245,1576][7][,I,][Times New Roman]]WK [[446,1546,1672,1599][11][,I,][Times New Roman]]0F'RQDOG+RXVHIDFLOLW\6LJQDOL]HGFURVVLQJIRUSHGHVWULDQVIRU [[1703,1546,1715,1599][11][,I,][Times New Roman]] [[1713,1546,2224,1599][11][,I,][T imes New Roman]]6WUHHW6:LVORFDWHGDWWKH [[2247,1546,2259,1599][11][,I,][Times New Roman]] [[621,1594,651,1628][7][,I,][Times New Roman]]QG [[446,1598,620,1651][11][,I,][Times New Roman]]$YHQXH [[650,1598,662,1651][11][,I,][Times New Roman]] [[661,1598,1078,1651][11][,I,][Times New Roman]]6WUHHW6:LQWHUVHFWLRQ [[1079,1598,1091,1651] [11][,I,][Times New Roman]] [[1090,1598,1842,1651][11][,I,][Times New Roman]]7UDQVLWVHUYLFHLVDYDLODEOHE\QXPHURXV [[1842,1598,2257,1651][11][,I,][Times New Roman]]EXVURXWHVWKDWVWRSDW [[541,1647,571,1681][7][,I,][Times New Roman]]QG [[876,1647,897,1681][7][,I,][Times New Roman]]WK [[450,1651,540,1704][11][,I,][Times New Roman]]WKH [[570,1651,582,1704][11][,I,][Times New Roman]] [[582,1651,876,1704][11][,I,][Times New Roman]]6WUHHW6:DQG [[898,1651,910,1704][11][,I,][Time s New Roman]] [[906,1651,1356,1704][11][,I,][Times New Roman]]$YHQXH6:LQWHUVHFWLRQ ()RXQGDWLRQDQG6LWH3ODQWLQJV [[1116,1756,2257,1809][11][,I,][Times New Roman]]7KHDSSOLFDQWKDVVXEPLWWHGDODQGVFDSHSODQLQGLFDWLQJD [[442,1809,1964,1862][11][,I,][Times New Roman]]ILQLVKHGVLWHFRQVLVWHQWZLWKWKHODQGVFDSHFKDUDFWHURIWKHVXUURXQGLQJDUHD [[1965,1809,1977,1861][11][B,I,][Times New Roman]] [[1986,1809,2249,186 2][11][,I,][Times New Roman]]7KHSURSRVHG [[2247,1809,2259,1862][11][,I,][Times New Roman]] [[450,1862,1451,1915][11][,I,][Times New Roman]]ODQGVFDSHSODQLPSURYHVXSRQWKHDUHDEHDXWLILFDWLRQ [[1452,1862,1464,1915][11][,,][Times New Roman]] )6LWH6WDWXV [[693,1967,2257,2020][11][,I,][Times New Roman]]7KHDSSOLFDQWKDVFRPELQHGWKHRULJLQDOORWVLQWRRQHWKURXJKWKH)LQDO3ODWSURFHVV [[450,2020,2256,2073][11][,I,][Times New Roman]]7KHSURMHFWZLOOEHUHTXLUHGWRLQVWDOODOOODQGVFDSLQJDQGSXEOLFLPSURYHPHQWVDVVKRZQRQWKH [[450,2073,1472,2126][11][,I,][Times New Roman]]DSSURYHGSODQSULRUWREXLOGLQJSHUPLWRU&2LVVXDQFH *6FUHHQLQJDQG%XIIHU\DUGV [[1026,2178,2257,2231][11][,I,][Times New Roman]]7KHQHZSDUNLQJDUHDSURSRVHGZLOOEHVWUXFWXUHG7KHDSSOLFDQW [[445,2231,2257,2284][11][,I,][Times New Roman]]SURSRVHVH[WHQVLYHSODQWLQJVDORQJWKHIURQW\DUGWREXIIHUWKHXVH7KHILQDOVFUHHQLQJDQG [[450,2284,729,2337][11][,I,][Times New Roman]]EXIIHU\DUGGHVL [[728,2284,2258,2337][11][,I,][Times New Roman]]JQFRQWDLQVHDUWKIRUPVVWUXFWXUHVDQGSODQWPDWHULDOVWKDWDUHDGHTXDWHWRVDWLVI\ [[450,2336,1527,2389][11][,I,][Times New Roman]]WKHQHHGVLGHQWLILHGLQWKHSUHOLPLQDU\SODQIRUWKHSURMHFW +)LQDO%XLOGLQJ'HVLJQ [[929,2442,2257,2495][11][,I,][Times New Roman]]7KHILQDOEXLOGLQJGHVLJQLVFRQVLVWHQWZLWKWKHSULQFLSOHVLGHQWLILHGLQ [[445,2494,646,2547][11][,I,][Times New Roman]]SUHOLPLQDU [[643,2494,2256,2547][11][,I,][Times New Roman]]\GHYHORSPHQWSODQUHODWLYHWR+HLJKW,PSDFW6HWEDFNVDQG,QWHUQDO6LWH'HVLJQ7KH [[450,2547,2257,2600][11][,I,][Times New Roman]]DWWDFKHGHOHYDWLRQVVKRZGHWDLOHGEXLOGLQJGHVLJQDQGPDWHULDOVFRQVLVWHQWZLWKWKHDSSURYHG [[445,2600,771,2653][11][,I,][Times New Roman]]SUHOLPLQDU\SODQ ,,QWHUQDO&LUFXODWLRQ$UHDV [[1003,2705,1240,2758][11][,I,][Times New Roman]]3ODQVIRURII [[1232,2705,1247,2758][11][,I,][Times New Roman]] [[1247,2705,1512,2758][11][,I,][Times New Roman]]VWUHHWSDUNLQJ [[1511,2705,2258,275 8][11][,I,][Times New Roman]]DQGORDGLQJDUHDVDQGFLUFXODWLRQDLVOHV [[450,2758,1169,2811][11][,I,][Times New Roman]]WRVHUYHWKHVHDUHDVPHHWRUGLQDQFHU [[1170,2758,1849,2811][11][,I,][Times New Roman]]HTXLUHPHQWVLQWHUPVRIGHVLJQ2II [[1840,2758,1855,2811][11][, I,][Times New Roman]] [[1856,2758,2258,2811][11][,I,][Times New Roman]]VWUHHWSDUNLQJLVPHW [[450,2811,1754,2864][11][,I,][Times New Roman]]WKURXJKWKHDGGLWLRQDOSDUNLQJSURSRVHGZLWKLQWKHILUVWIORRUDGGLWLRQ [[1754,2811,1766,2863][11][B,I,][Times New Roman]] -2UGLQDQFH5HTXLUHPHQWV [[999,2916,1430,2969][11][,I,][Times New Roman]]7KH)LQDO3ODQSURSRV [[1431,2916,2257,2969][11][,I,][Times New Roman]]DOPHHWVDOORUGLQDQFHUHTXLUHPHQWVH[FHSW [[450,2969,1470,3022][11][,I,][Times New Roman]]ODQGVFDSLQJSHUFHQWDJHKHLJKWDQGIURQW\DUGVHWEDFN [[1469,2969,1492,3022][11][,I,][Times New Roman]] [[1495,2969,1524,3022][11][,I,][Times New Roman]]7 [[1520,2969,1848,3022][11][,I,][Times New Roman]]KH&RXQFLODFWHG [[1851,2969,1969,3022][11][,I,][Times New Roman]]XQGHU [[1971,2969,2117,3022][11][,I,][Times New Roman]]6HFWLRQ [[2121,2969,2258,3022][11][,I,][Times New Roman]] )F 5&83)LQDO3ODQ3DJH [[450,175,966,228][11][,I,][Times New Roman]]DQGDSSURYHGPRGLILFDWLRQV [[967,175,979,228][11][,I,][Times New Roman]] [[979,175,2257,228][11][,I,][Times New Roman]]WRODQGVFDSLQJSHUFHQWDJHKHLJKW DQGIURQW\DUGVHWEDFNDWWKH0D\ [[450,228,756,281][11][,I,][Times New Roman]]PHHWLQJ [[756,228,768,281][11][,I,][Times New Roman]] [[768,228,797,281][11][,I,][Times New Roman]]7 [[793,228,847,281][11][,I,][Times New Roman]]KH [[846,228,1057,281][11][,I,][Times New Roman]])LQDO3ODQ [[1057,228,1768,281][11][,I,][Times New Roman]]FRQIRUPVWRWKHJUDQWHGPRGLILFDWLRQV 1RQ9HKLFXODUDQG$OWHUQDWLYH7UDYHO0RGHV .[[1403,333,2261,386][11][,I,][Times New Roman]]3HGHVWULDQRULHQWHGVSDFHLVSURYLGHGRQWKH [[450,386,1672,439][11][,I,][Times New Roman]]VHFRQGURRIWRSSDWLR3HGHVWULDQDFFHVVLVORFDWHGDORQJWKHSXEOLF [[1674,386,1686,439][11][,I,][Times New Roman]] [[1684,386,1869,439][11][,I,][Times New Roman]]VLGHZDONW [[1868,386,2240,439][11][,I,][Times New Roman]]RWKHQRUWKDQGZHVW [[2239,386,2261,439][11][,I,][Times New Roman]] [[448,439,2169,492][11][,I,][Times New Roman]]%LF\FOHSDUNLQJLVDYDLODEOHLQVLGHWKHSDUNLQJJDUDJH&RQYHQLHQWWUDQVLWDFFHVVLVORFDWHGD [[2170,439,2261,492][11][,I,][Times New Roman]]WWKH [[748,488,778,522][7][,I,][Times New Roman]]QG [[1082,488,1103,522][7][,I,][Times New Roman]]WK [[450,492,747,545][11][,I,][Times New Roman]]LQWHUVHFWLRQRI [[777,492,789,545][11][,I,][Times New Roman]] [[789,492,1082,545][11][,I,][Times New Roman]]6WUHHW6:DQG [[1104,492,1116,545][11][,I ,][Times New Roman]] [[1112,492,1334,545][11][,I,][Times New Roman]]$YHQXH6: [[1334,492,2261,545][11][,I,][Times New Roman]]ZLWKVHUYLFHUXQQLQJERWKZHHNGD\DQGZHHNHQGV [[450,544,1139,597][11][,I,][Times New Roman]]7KHVLWHLVZLWKLQZDONLQJGLVWDQFHRI [[1131,544,1143,597][11][,I,][Times New Roman]] [[1142,544,1778,597][11][,I,][Times New Roman]]6W0DU\V+RVSLWDO DQGGRZQWRZQ [[1779,544,1791,597][11][,,][Times New Roman]] [[1790,544,1802,597][11][,,][Times New Roman]] [[1199,646,1229,680][7][,I,][Times New Roman]]QG &RUULGRU3ODQV /[[786,650,1198,703][11][,I,][Times New Roman]]7KHVLWHLVZLWKLQWKH [[1228,650,1240,703][11][,I,][Times New Roman]] [[1240,650,2107,703][11][,I,][Times New Roman]]6WUHHW&RUULGRU3ODQ7KHODQ GXVHSURSRVDOLV [[826,698,856,732][7][,I,][Times New Roman]]QG [[450,702,826,755][11][,I,][Times New Roman]]FRQVLVWHQWZLWKWKH [[855,702,867,755][11][,I,][Times New Roman]] [[867,702,2217,755][11][,I,][Times New Roman]]6WUHHW&RUULGRU3ODQ0DSZKLFKGHVFULE HVWKHXVHRIWKHVHSURSHUWLHVDV [[450,755,1055,808][11][,I,][Times New Roman]]KRVSLWDOLW\KRPHV7KH3ODQUHFR [[1056,755,2150,808][11][,I,][Times New Roman]]PPHQGVLQFUHDVLQJKRXVLQJGHQVLW\DORQJWKHFRUULGRUDQG [[450,808,1980,861][11][,I,][Times New Roman]]HQFRXUDJHVKLJKDFWLYLW\DQGVXSSRUWLYHXVHVWKDWVXSSRUWDYLEUDQWQHLJKERUKRRG [[1981,808,1993,861][11][,I,][Times New Roman]] [[450,913,2256,966][11][,I,][Times New Roman]]7KH3ODQDOVRHQFRXUDJHVUHORFDWLQJSDUNLQJWRWKHUHDURIEXLOGLQJVDQGWDNLQJDFFHVVRIIRIVLGH [[1311,962,1341,996][7][,I,][Times New Roman]]QG [[450,966,553,1019][11][,I,][Times New Roman]]VWUHHW [[553,966,565,1019][11][,I,][Times New Roman]] [[564,966,1311,1019][11][,I,][Times New Roman]]RUDOOH\ZD\VWRUHGXFHFXUEFXWVDORQJ [[1340,966,1352,1019][11][,I,][Times New Roman]] [[1352,966,2165,1019][11][,I,][Times New Roman]]6WUHHW6: WKH50+SURSRVDOLQFOXGHVUHDU [[445,1019,1967,1072][11][,I,][Times New Roman]]SDUNLQJVFUHHQHGZLWKLQWKHEXLOGLQJDQGWDNHVDFFHVVRIIRIDQH[LVWLQJDOOH\ZD\ [[1969,1019,1981,1072][11][,I,][Times New Roman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¶VH[LVWLQJ 127( IDFLOLWLHVZLOOEHDWWKHRZQHUGHYHORSHU¶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´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²35(/,0,1$5<3/$1&21',7,216 $WWKH&LW\3ODQQLQJ =RQLQJ&RPPLVVLRQPHHWLQJKHOGRQ:HGQHVGD\0DUFKWKHIROORZLQJ VWDIIUHFRPPHQGDWLRQVZHUHKHDUG&RPPHQWVEHORZH[SODLQKRZWKHVHFRQGLWLRQVZLOORUKDYHEHHQ LQFRUSRUDWHGLQWR50+5$ILQDOSURSRVDO 'HYHORSPHQW$SSOLFDWLRQ53/$7D)LQDO3ODWWREHNQRZQDV&OLIIVLGH$GGLWLRQKDV EHHQUHFRUGHGSULRUWRWKLV)LQDO3ODQVXEPLWWDO $FNQRZOHGJPHQWWKDWDQ\UHORFDWLRQDGMXVWPHQWVRI&KDUWHU·VH[LVWLQJIDFLOLWLHVZLOOEHDWWKH RZQHU·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µFRPSRXQG GRPHVWLFZDWHUPHWHULVODUJHHQRXJKIRUHQWLUHFRPSOH[6XSSRUWLQJGRFXPHQWDWLRQKDVEHHQ LQFOXGHGZLWKWKLVVXEPLWWDO 1(,*+%25+22'0((7,1* ,QDQHIIRUWWRIXOO\FRPPXQLFDWHWRWKHQHLJKERULQJSURSHUWLHVZLWKLQIHHWRIFRQVWUXFWLRQIRUWKH 50+5$WKH5RQDOG0F'RQDOG+RXVH 50+ PDLOHGIO\HUVWRWKHDGGUHVVHVOLVWHGLQWKHDWWDFKHG GRFXPHQWWLWOHG´1HLJKERUKRRG1RWLILFDWLRQµ7KHQHLJKERUKRRGPHHWLQJZDVKHOGRQVLWHDWSP :HGQHVGD\)HEUXDU\ )H 5RQDOG0F'RQDOG+RXVH5RFKHVWHU$GGLWLRQ 50+5$ QG6W6:5RFKHVWHU01 5&83 ),1$/,1&(17,9('(9(/230(17 7KH50+5$LVD7UDQVLHQW$FFRPPRGDWLRQVGHYHORSPHQWZLWKLQWKH&HQWUDO'HYHORSPHQW&RUH 5HVLGHQWLDO$UHD3HUWKH&LW\RI5RFKHVWHU=RQLQJ2UGLQDQFHDQG/DQG'HYHORSPHQW0DQXDO *HQHUDO=RQLQJ'LVWULFW6WDQGDUGV²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²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²1(,*+%25+22'7232*5$3+,& 6HWEDFNV D 7KHUHDUHH[WUDRUGLQDU\H[LVWLQJFRQGLWLRQVGXHWRWKHSURSHUW\·VXQLTXH WRSRJUDSKLFDODQGSK\VLFDODWWULEXWHVSDUWLFXODUO\WKHVRXWKSURSHUW\OLQHZKLFK DEXWVDVHYHUHO\VORSHGKLOOVLGHFOLII E 7KHUHTXHVWHGVHWEDFNVDUHQHFHVVDU\WRRYHUFRPHSUDFWLFDOGLIILFXOWLHVLQ FRPSO\LQJZLWKWKH]RQLQJRUGLQDQFHVRWKDWWKHSURSHUW\FDQEHGHYHORSHGLQD UHDVRQDEOHPDQQHUQRWVWULFWO\SHUPLWWHGE\WKHRUGLQDQFH F 7KHUHTXHVWHGVHWEDFNVZLOOQRWEHPDWHULDOO\GHWULPHQWDOWRWKHSXEOLFZHOIDUHRU PDWHULDOO\LQMXULRXVWRRWKHUSURSHUW\LQWKHDUHDDQGZLOOQRWDOWHUWKHHVVHQWLDO FKDUDFWHURIWKHORFDOLW\DVWKHUHFXUUHQWO\DUHH[LVWLQJGHYHORSPHQWVDORQJ QG 6WUHHWWKDWHQFURDFKRQWKH·µUHTXLUHGVHWEDFN7KHUHTXHVWHGVHWEDFNV 0D\ )H 5RQDOG0F'RQDOG+RXVH5RFKHVWHU$GGLWLRQ 50+5$ QG6W6:5RFKHVWHU01 5&83 ZRXOGQRWEHVHWWLQJDQHZSUHFHGHQW UHGSDUNLQJDVSDUWRIWKLVSURMHFW E 7KHSK\VLFDOOLPLWDWLRQVRIWKHVLWHDQGSURYLVLRQRIRIIVWUHHWSDUNLQJFRPELQHWR OLPLWWKHDPRXQWRIDYDLODEOHODQGVFDSHDUHDWRVKRUWRIWKHUHTXLUHGWR PHHW]RQLQJUHTXLUHPHQWV7RRIIVHWWKLVWKHSURMHFWLQFOXGHVDQLQWHQVHO\ SODQWHGIURQW\DUG,QDGGLWLRQWKHFDOFXODWHGRIODQGVFDSHDUHDGRHVQRW LQFOXGHWKHSDWLRGHFNRQWKHVRXWKVLGHRIWKHEXLOGLQJ7KLVDUHDIXQFWLRQVDVD UHFUHDWLRQDO¶\DUG·EXWGXHWRLWVORFDWLRQDERYHWKHSDUNLQJVWUXFWXUHLWLV FODVVLILHGDVLPSHUYLRXVVXUIDFH7KHODQGVFDSHDUHDFDOFXODWHGWRLQFOXGHWKH SDWLRGHFNDUHDLV 1RQ9HKLFXODUDQG$OWHUQDWH0RGHVRI7UDYHO D 7KHGHYHORSPHQWLQFOXGHVDQHZHQWUDQFHFDQRS\WRIDFLOLWDWHSHGHVWULDQ PRYHPHQWWRDQGIURPWKHPDLQHQWUDQFHORFDWHGRQ6WUHHW QG 0D\ )H 5RQDOG0F'RQDOG+RXVH5RFKHVWHU$GGLWLRQ 50+5$ QG6W6:5RFKHVWHU01 5&83 E 7KHSOD\JURXQGLVVWUDWHJLFDOO\ORFDWHGLQWKHUHDUFRXUW\DUGDERYHWKHSDUNLQJ OHYHOWRDOORZIRUVHSDUDWLRQEHWZHHQSHGHVWULDQVDQGYHKLFOHV F 7KHDOOH\RQERUGHULQJWKHHDVWSURSHUW\OLQHLVGHGLFDWHGWRSHUVRQDODQG VHUYLFHVYHKLFOHVDQGQRWLQWHQGHGIRUSHGHVWULDQXVH G $ELNHUDFNZLOOEHSURYLGHGWRHQFRXUDJHVWDIIDQGYROXQWHHUVWRXVHDOWHUQDWLYH PRGHVRIWUDQVSRUWDWLRQ 7KH50+5$LVFRQVLVWHQWZLWKWKHSURMHFWHGXVHRXWOLQHGLQWKH5RFKHVWHU6WUHHW QG &RUULGRU)UDPHZRUN3ODQ7KHVRXWKVLGHRI6WUHHWEHWZHHQIHU\DUGGHVLJQKDVEHHQLQFRUSRUDWHGLQWRWKLVVXEPLWWDO7KH PHFKDQLFDOHTXLSPHQWKRXVHGDQGVFUHHQHGRQWKHURRILVLOOXVWUDWHGRQWKHURRISODQVKHHW6HH LWHPDERYH +7KHILQDOEXLOGLQJGHVLJQLVFRQVLVWHQWZLWKWKHSULQFLSOHVLGHQWLILHGLQSUHOLPLQDU\GHYHORSPHQW SODQUHODWLYHWRKHLJKWLPSDFWVHWEDFNVDQGLQWHUQDOVLWHGHVLJQ'RFXPHQWDWLRQIRU538·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hd ^K&d, /dzK&ZK, ^d ZW>EE/E'KDD/^^/KE ϮϭϮϮDWh^Z/s ^ ʹ^h/d ϭϬϬ ZK, ^d ZDEϱϱϵϬϰ DŝŶƵƚĞƐŽĨƚŚĞƌĞŐƵůĂƌůLJƐĐŚĞĚƵůĞĚŵĞĞƚŝŶŐŽĨƚŚĞŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶŚĞůĚŽŶ tĞĚŶĞƐĚĂLJ͕:ƵŶĞϴ͕ϮϬϭϲ͕Ăƚϲ͗ϬϬƉ͘ŵ͘ŝŶƚŚĞŽƵŶĐŝůͬŽĂƌĚŚĂŵďĞƌƐŽĨƚŚĞ'ŽǀĞƌŶŵĞŶƚĞŶƚĞƌ͕ϭϱϭ ϰƚŚ^ƚƌĞĞƚ^ ͕ZŽĐŚĞƐƚĞƌ͕DE͘ DĞŵďĞƌƐWƌĞƐĞŶƚ͗Dƌ͘DŝĐŚĂĞůtĂůƚĞƌƐ͕ŚĂŝƌ͖DƐ͘>ŝŶĚƐĞLJDĞĞŬ͕sŝĐĞ ͲŚĂŝƌ͖Dƌ͘WĂƵů^ŝŵƐ͕Dƌ͘ dŚŽŵĂƐ,ŝůů͖Dƌ͘<ƌĂŝŐƵƌƐƚ͕DƐ͘ZĞŐŝŶĂ^ĞĂďƌŽŽŬ͕DƐ͘ƌŝƚƚĂŶLJtŝůƐŽŶ͕Dƌ͘^ƚĞǀĞ^ŚĞƌǁŽŽĚĂŶĚDƌ͘ tĂĚĞ'ŽŽĚĞŶďĞƌŐĞƌ͘ DĞŵďĞƌƐďƐĞŶƚ͗ŶŽŶĞ ^ƚĂĨĨWƌĞƐĞŶƚ͗DƐ͘<ƌŝƐƚŝ'ƌŽƐƐ͕WůĂŶŶĞƌ͖Dƌ͘DĂƌŬ ŶŐĞů͕WƌŝŶĐŝƉĂůWůĂŶŶĞƌ͖Dƌ͘:ŽŚŶ,ĂƌĨŽƌĚ͕Z^ ^ƵƉĞƌǀŝƐŽƌ͕ĂŶĚDƐ͘ĞƚŚĂǀŝƐ͕ƐĞĐƌĞƚĂƌLJ KƚŚĞƌŝƚLJ^ƚĂĨĨWƌĞƐĞŶƚ͗DƐ͘WĂƚůĨƌĞĚƐŽŶ͕ŝƚLJƚƚŽƌŶĞLJ ^ĞƚKƌĚĞƌKĨŐĞŶĚĂ͗ DƐ͘^ĞĂďƌŽŽŬŵŽǀĞĚƚŽĂƉƉƌŽǀĞƚŚĞĂŐĞŶĚĂ͕ĂƐĚŝƐƚƌŝďƵƚĞĚĂƚƚŚĞŵĞĞƚŝŶŐ͘Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌ ƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚƵŶĂŶŝŵŽƵƐůLJ͘ ŽŶƐĞŶƚŐĞŶĚĂ͗ DƐ͘DĞĞŬŵĂĚĞĂŵŽƚŝŽŶƚŽĂƉƉƌŽǀĞƚŚĞĨŽůůŽǁŝŶŐĐŽŶƐĞŶƚŝƚĞŵƐ͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘ x DĂLJϮϱ͕ϮϬϭϲŵŝŶƵƚĞƐ dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚƵŶĂŶŝŵŽƵƐůLJ͘ ZĞƉŽƌƚƐĂŶĚZĞĐŽŵŵĞŶĚĂƚŝŽŶƐ͗ /ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚ&ŝŶĂůWůĂŶηZϮϬϭϲ Ͳ ϬϬϭhWďLJZŽŶĂůĚDĐŽŶĂůĚ,ŽƵƐĞ͘dŚĞĂƉƉůŝĐĂŶƚŝƐ ƉƌŽƉŽƐŝŶŐƚŽĐŽŶƐƚƌƵĐƚĂϯƐƚŽƌLJ͕ϯϬƵŶŝƚ͕ƚƌĂŶƐŝĞŶƚĨĂĐŝůŝƚLJĂĚĚŝƚŝŽŶ;ZŽŶĂůĚDĐŽŶĂůĚ,ŽƵƐĞͿ͘dŚĞ ƉƌŽƉĞƌƚLJŝƐǁŝƚŚŝŶƚŚĞͲ Z ^;ĞŶƚƌĂůĞǀĞůŽƉŵĞŶƚŽƌĞ Ͳ ZĞƐŝĚĞŶƚŝĂůͿŽŶŝŶŐŝƐƚƌŝĐƚĂŶĚŝƐůŽĐĂƚĞĚ ĂƚƚŚĞĐŽƌŶĞƌŽĨϵƚŚǀĞŶƵĞ^tĂŶĚϮŶĚ^ƚƌĞĞƚ^t͘ DƐ͘'ƌŽƐƐƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵŶĞϮ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞ ĂƚƚŚĞZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘ƵƌƐƚŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĂƉƉƌŽǀĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚ&ŝŶĂůWůĂŶηZϮϬϭϲ Ͳ ϬϬϭhWďLJ ZŽŶĂůĚDĐŽŶĂůĚ,ŽƵƐĞǁŝƚŚƚŚĞƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐĂŶĚĐŽŶĚŝƚŝŽŶƐǁŝƚŚƐƚƌŝŬŝŶŐŽĨ ĐŽŶĚŝƚŝŽŶŶŽ͘ϱďĞĐĂƵƐĞƚŚĞĐŽŶĚŝƚŝŽŶŝƐƐĂƚŝƐĨŝĞĚ͘Dƌ͘,ŝůůƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚ ƵŶĂŶŝŵŽƵƐůLJ͘ _3DJH 3DFNHW3J )J ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ KE/d/KE^͗ ϭ͘'ƌĂĚŝŶŐΘƌĂŝŶĂŐĞWůĂŶĂƉƉƌŽǀĂůŝƐƌĞƋƵŝƌĞĚƉƌŝŽƌƚŽďƵŝůĚŝŶŐƉĞƌŵŝƚĂƉƉƌŽǀĂů͘ Ϯ͘ džĞĐƵƚŝŽŶŽĨĂZĞǀŽĐĂďůĞWĞƌŵŝƚŐƌĞĞŵĞŶƚǁŝůůďĞƌĞƋƵŝƌĞĚĨŽƌĂŶLJƉƌŽƉŽƐĞĚƉƌŝǀĂƚĞŝŵƉƌŽǀĞŵĞŶƚƐ ǁŝƚŚŝŶƚŚĞƉƵďůŝĐƌŝŐŚƚ Ͳ ŽĨ Ͳ ǁĂLJ͘ ϯ͘ZĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨƚŚĞŶŽƌƚŚͬƐŽƵƚŚĂůůĞLJŝƐƌĞƋƵŝƌĞĚĂƚƚŚĞKǁŶĞƌ͛ƐĞdžƉĞŶƐĞ͕ĐŽŶĐƵƌƌĞŶƚǁŝƚŚƚŚĞ ĚĞǀĞůŽƉŵĞŶƚŽĨƚŚŝƐƉƌŽũĞĐƚ͘ ϰ͘ džĞĐƵƚŝŽŶŽĨĂŝƚLJ Ͳ KǁŶĞƌŽŶƚƌĂĐƚŝƐƌĞƋƵŝƌĞĚƉƌŝŽƌƚŽĐŽŶƐƚƌƵĐƚŝŽŶͬƌĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨƉƵďůŝĐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞƚŽƐĞƌǀĞƚŚŝƐĚĞǀĞůŽƉŵĞŶƚ͘ŶLJƉƌŽƉŽƐĞĚƉƵďůŝĐŝŵƉƌŽǀĞŵĞŶƚƐůLJŝŶŐǁŝƚŚŝŶKǁŶĞƌƐ ƉƌŝǀĂƚĞƉƌŽƉĞƌƚLJǁŝůůƌĞƋƵŝƌĞĚĞĚŝĐĂƚŝŽŶŽĨƉƵďůŝĐĞĂƐĞŵĞŶƚƐƉƌŝŽƌƚŽĐŽŶƐƚƌƵĐƚŝŽŶ͘ ϱ͘dŚƌĞĞ&ŝŶĂů^ŝƚĞWůĂŶƐƐŚĂůůďĞƌĞ Ͳ ƐƵďŵŝƚƚĞĚƚŚĂƚĐŽƌƌĞĐƚƐƚŚĞƌĞƋƵŝƌĞĚƌĞĂƌLJĂƌĚƐĞƚďĂĐŬƌĞƋƵŝƌĞŵĞŶƚ͖ ƌĞƋƵŝƌĞĚŵŝŶŝŵƵŵƌĞĂƌLJĂƌĚƐĞƚďĂĐŬŝƐĞŝŐŚƚĨĞĞƚ;ϴ͛Ϳ͘dŚĞǁĞƐƚLJĂƌĚŝƐĂƐŝĚĞƐƚƌĞĞƚƐŝĚĞLJĂƌĚĂŶĚƚŚĞ ƐĞƚďĂĐŬƌĞƋƵŝƌĞŵĞŶƚĨŽƌĂƐŝĚĞƐƚƌĞĞƚƐŝĚĞLJĂƌĚŝƐЪƚŚĞƌĞƋƵŝƌĞŵĞŶƚŽĨƚŚĞĨƌŽŶƚLJĂƌĚ͘dŚĞĞůĞĐƚƌŽŶŝĐ ĐŽƉLJƐŚĂůůĂůƐŽďĞƉƌŽǀŝĚĞĚ͘ ŽŶƚŝŶƵĞĚ/ƚĞŵƐ͗ 'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶηZϬϬϯϯϳ'WďLJz,ĂŶĚ ͕>>ƚŽďĞŬŶŽǁŶĂƐ^ĐĞŶŝĐKĂŬƐtĞƐƚ͘dŚĞ ƉůĂŶŝŶĐůƵĚĞƐĨŝǀĞƉĂƌĐĞůƐĐŽǀĞƌŝŶŐϭϳϲĂĐƌĞƐ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚǁĞƐƚŽĨƚŚĞ^ĐĞŶŝĐKĂŬƐ ƐƵďĚŝǀŝƐŝŽŶƐ͕ĞĂƐƚŽĨϯϭƐƚǀĞŶƵĞ^tĂŶĚƐŽƵƚŚŽĨϰϴƚŚ^ƚƌĞĞƚ^tŝŶ^ĞĐƚŝŽŶƐϮϴĂŶĚϯϯŽĨZŽĐŚĞƐƚĞƌ dŽǁŶƐŚŝƉ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞŽŵŵŝƐƐŝŽŶŝŶƌĞŐĂƌĚƐƚŽƚŚĞƌĞĂƐŽŶŝŶŐĨŽƌƚŚĞƌĞƋƵĞƐƚ͘WůĂŶŶŝŶŐ^ƚĂĨĨ ŶŽƚĞĚƚŚĞLJǁŝůůďĞŵĞĞƚŝŶŐǁŝƚŚƚŚĞĚĞǀĞůŽƉĞƌƚŽƌĞƐŽůǀĞƐŽŵĞŽĨƚŚĞĚĞǀĞůŽƉŵĞŶƚĐŽŶĐĞƌŶƐ͘ Dƌ͘^ŝŵƐŵŽǀĞĚƚŽĐŽŶƚŝŶƵĂƚŝŽŶŽĨ'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶηZϬϬϯϯϳ'WďLJz,ĂŶĚ ͕>>ƚŽ ďĞŬŶŽǁŶĂƐ^ĐĞŶŝĐKĂŬƐtĞƐƚƚŽƚŚĞ:ƵůLJϭϯ͕ϮϬϭϲWŵĞĞƚŝŶŐ͘Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌƐĞĐŽŶĚĞĚƚŚĞ ŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚƵŶĂŶŝŵŽƵƐůLJ͘ WƵďůŝĐ,ĞĂƌŝŶŐƐ͗ /ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶηZϮϬϭϲ Ͳ ϬϭϴhWďLJƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌ ͲĚŵŝŶŝƐƚƌĂƚŝŽŶ͘ dŚĞĂƉƉůŝĐĂŶƚƉƌŽƉŽƐĞƐƚŽĐŽŶƐƚƌƵĐƚĂϳůĞǀĞůƉĂƌŬŝŶŐƌĂŵƉ͕ĐŽŵŵĞƌĐŝĂůƐƉĂĐĞ͕ĂŶĚĂƉŽƚĞŶƚŝĂůĨŽƌĂϭϬ ĨůŽŽƌĂƉĂƌƚŵĞŶƚďƵŝůĚŝŶŐĂƐĂ^ƚĂŐĞĚĞǀĞůŽƉŵĞŶƚ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨ ͘ĞŶƚĞƌ^ƚƌĞĞƚ ĂŶĚǁĞƐƚŽĨϭƐƚǀĞŶƵĞ^ ͘ Dƌ͘ ŶŐĞůƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵŶĞϴϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞĂƚ ƚŚĞZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞĐŽŵŵŝƐƐŝŽŶŝŶƌĞŐĂƌĚƐƚŽƚŚĞƐƚŽƌŵǁĂƚĞƌĚĞƐŝŐŶŝŶƚŚĞƉĂƌŬŝŶŐƌĂŵƉ͖ ǀŝďƌĂƚŝŽŶĐŽŶĐĞƌŶƐĞdžƉƌĞƐƐĞĚǁŝƚŚƚŚĞĚĞƐŝŐŶŽĨĂƚƵŶŶĞůĨŽƌƚŚĞƌĂŝůǁĂLJƚƌĂĐŬƐ͖ĂŶĚƉĞĚĞƐƚƌŝĂŶƐĂĨĞƚLJ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘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q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¶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³$PRYHPHQWRIFXELF\DUGVRUPRUHRIHDUWKWKDWLQYROYHVDFKDQJHLQ QDWXUDORUSUHH[LVWLQJJUDGHVRIWHQRUPRUHYHUWLFDOIHHWIRUDQ\SRUWLRQRIDSDUFHO´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¶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imes New Roman]] 07KHVRLOVWRSRJUDSK\DQGZDWHUWDEOHVKDYHEHHQDGHTXDWHO\VWXGLHGWRHQVXUHWKDWDOOORWVDUH GHYHORSDEOHIRUWKHLUGHVLJQDWHGSXUSRVHV 17KHSURSRVHGODQGVXEGLYLVLRQLVFRQVLVWHQWZLWKWKHVWDQGDUGVRIWKH&LW\¶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ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ Dƌ͘,ŝůůŶŽƚĞĚŝŶƌĞŐĂƌĚƐƚŽƚŚĞŚŽƵƐŝŶŐƉŽƌƚŝŽŶďĞĐĂƵƐĞŽĨƚŚĞǁĂLJŝƚŝƐƉƌŽƉŽƐĞĚĂŶĚŝƚŝƐĂƉůĂŶĨŽƌƚŚĞ ĨƵƚƵƌĞ͖ĂŶĚŝĨƚŚŝƐĂƐƉĞĐƚĚŽĞƐŐŽƚŚƌŽƵŐŚƚŚĞďŝĚĚŝŶŐƉƌŽĐĞƐƐƚŚĞŶƚŚĞƉůĂŶǁŝůůŚĂǀĞƚŽĐŽŵĞďĂĐŬƚŽ ƚŚĞĐŽŵŵŝƐƐŝŽŶĨŽƌƌĞǀŝĞǁ͖ŵĂƐƚĞƌĚŽǁŶƚŽǁŶƉůĂŶĐŽŶƐŝƐƚĞŶĐLJĨŽƌŵŝdžĞĚƵƐĞƚŚĞƌĞŝƐĂŶĞĞĚĨŽƌĂ ŚŝŐŚĞƌĚĞŐƌĞĞĂĐƚŝǀĞůĂŶĚƐĐĂƉĞĂŶĚŽƉĞŶĂƌĞĂƐďƵƚǁŝƚŚĂƉĂƌŬŝŶŐƌĂŵƉĂĚĞǀĞůŽƉĞƌŝƐůŝŵŝƚĞĚǁŝƚŚǁŚĂƚ ƚŚĞLJŚĂǀĞƚŽǁŽƌŬǁŝƚŚ͖ĂĨƵŶĚĂŵĞŶƚĂůŐŽĂůŝƐƚŽĂĚĚƉĂƌŬŝŶŐŽƉƚŝŽŶƐ͖ƚŚĞLJŚĂǀĞǁŽƌŬĞĚǁŝƚŚǁŚĂƚƚŚĞLJ ŚĂǀĞĂŶĚƚŚĞĚĞƐŝŐŶŝƐƐƚŝŵƵůĂƚŝŶŐ͖ƚŚĞŚĞŝŐŚƚŝŵƉĂĐƚƐĂŶĚƚŚĞƌĞĂƌĞŽƚŚĞƌůĂƌŐĞďƵŝůĚŝŶŐƐŝŶƚŚĞĂĚũĂĐĞŶƚ ĂƌĞĂ͖ĂŶĚƚŚĞŶĞĞĚĨŽƌŵŽƌĞƉĂƌŬŝŶŐŝƐǀĂůŝĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĐŽƵŶƚĞƌĞĚǁŝƚŚƚŚĞŵŝdžĞĚƵƐĞĂŶĚĚĞƐŝŐŶƐƚĂŶĚĂƌĚƐƐŚŽƵůĚŝŶĐŽƌƉŽƌĂƚĞĂŶŽƚŚĞƌƵƐĞ ĂůŽŶŐǁŝƚŚƚŚĞƉĂƌŬŝŶŐƵƐĞ͖ǁŚŝĐŚƚŚĞLJŚĂǀĞĚŽŶĞ͕ďƵƚŝƐŶŽƚĚĞƐŝƌĂďůĞǁŝƚŚƚŚĞŽǁŶƚŽǁŶŵĂƐƚĞƌƉůĂŶ͘ DƐ͘^ĞĂďƌŽŽŬƉŽŝŶƚĞĚŽƵƚƚŚĞƐŽĐŝĂůŝŵƉĂĐƚƐŚĂǀĞŶŽƚďĞĞŶĂĚĚƌĞƐƐĞĚ͕ĂƐƚŚĞƚĞĐŚŶŝĐĂůĂƐƉĞĐƚƐŽĨƚŚĞ ƉƌŽũĞĐƚƐŚĂǀĞďĞĞŶĚŝƐĐƵƐƐĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŶŽƚĞĚŚĞĚŝƐĂŐƌĞĞƐǁŝƚŚƚŚĞƉŽŝŶƚŽĨƉĂƌŬŝŶŐƌĂŵƉƐĂƌĞŝŶŚĞƌŝƚĂŶƚůLJƵŐůLJ͖ƚŚĞƌĞĂƌĞ ĚĞƐŝŐŶƐƚŚĂƚĐĂŶƐĐƌĞĞŶƉĂƌŬŝŶŐĂŶĚďůĞŶĚƚŚĞŵŝŶƚŽƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͖ƚŚĞĚŝĨĨŝĐƵůƚŝĞƐĐƌĞĂƚŝŶŐƚŚĞŵŝdžĞĚ ƵƐĞƐǁŚĞŶƚŚĞƚƌĂŝŶƚƌĂĐŬƐĂƌĞĞdžŝƐƚŝŶŐ͖ĂŶĚŝĨƚŚĞŝƚLJĐĂŶ͛ƚŵĞĞƚƚŚĞĚĞƐŝŐŶƐƚŚĞŶŵĂLJďĞƚŚĞLJƐŚŽƵůĚŽĨ ůŽŽŬĞĚĂƚĂĚŝĨĨĞƌĞŶƚůŽĐĂƚŝŽŶ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶ ηZϮϬϭϲ Ͳ ϬϭϴhWƉƌĞůŝŵŝŶĂƌLJŵƵůƚŝ Ͳ ĨĂŵŝůLJŚŽƵƐŝŶŐŽƉƚŝŽŶĚŽĞƐŶŽƚŵĞĞƚĐƌŝƚĞƌŝĂϳĂŶĚϭϭ͘Dƌ͘^ŝŵƐ ƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĨĂŝůĞĚϱ Ͳ ϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕ĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘DƐ͘ DĞĞŬĂďƐƚĂŝŶĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶ ηZϮϬϭϲ Ͳ ϬϭϴhWĨŝŶĂůƉůĂŶͲƉĂƌŬŝŶŐĨĂĐŝůŝƚLJĚŽĞƐŶŽƚŵĞĞƚĐƌŝƚĞƌŝĂϳĂŶĚϭϭ͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞ ŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĨĂŝůĞĚϱ Ͳ ϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕ĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘DƐ͘DĞĞŬ ĂďƐƚĂŝŶĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶ ηZϮϬϭϲ Ͳ ϬϭϴhWĨŝŶĂůƉůĂŶͲĨŽƌƚŚĞŐĂƌĂŐĞŝŶƚŚĞŽǁŶƚŽǁŶWĂƌŬŝŶŐKǀĞƌůĂLJŽŶĞĚŽĞƐŶŽƚŵĞĞƚ ĐƌŝƚĞƌŝĂϮŽĨƚŚĞKW͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĨĂŝůĞĚϱ Ͳ ϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕ ĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘DƐ͘DĞĞŬĂďƐƚĂŝŶĞĚ͘ &ŝǀĞŵŝŶƵƚĞƌĞĐĞƐƐƚĂŬĞŶ͘ WƌĞůŝŵŝŶĂƌLJWůĂƚηZϮϬϭϲ Ͳ ϬϭϲW>dďLJKƌŽŶŽĐŽ/ŶǀĞƐƚŵĞŶƚƐ͕>>ƚŽďĞŬŶŽǁŶĂƐ,ƵŶƚĞƌsĂůůĞLJ ƐƚĂƚĞƐ͘ dŚĞϱϵ͘ϰϵĂĐƌĞƉƌŽƉĞƌƚLJŝƐƚŽďĞƐƵďĚŝǀŝĚĞĚŝŶƚŽϮϭůŽƚƐ͕ƚǁŽŽƵƚůŽƚƐĂŶĚƚŚƌĞĞƉƵďůŝĐƐƚƌĞĞƚƐ͘ ^ƵďƐƚĂŶƚŝĂů>ĂŶĚůƚĞƌĂƚŝŽŶŝƐƉƌŽƉŽƐĞĚĨŽƌĂƉŽƌƚŝŽŶŽĨƚŚĞƐŝƚĞ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨϱϱƚŚ ^ƚƌĞĞƚEtĂŶĚǁĞƐƚŽĨϭϴƚŚǀĞŶƵĞEt͘ DƐ͘'ƌŽƐƐƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵŶĞϮ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞ ĂƚƚŚĞZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ DƐ͘>ĞƐůŝĞZŝǀĂƐ Ͳ DĐ'ŝůůŝǀƌĂLJ͕ĐŽŶƐƵůƚĂŶƚǁŝƚŚt^ΘƐƐŽĐŝĂƚĞƐ͕ůŽĐĂƚĞĚĂƚϭϲϰϴdŚŝƌĚǀĞŶƵĞ^ ͕ ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂϱϱϵϬϰ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘^ŚĞŶŽƚĞĚƚŚĞLJĂƌĞŝŶĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞ _3DJH 3DFNHW3J )F ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ ĐŽŶĚŝƚŝŽŶƐ͖ƐŚĞŶŽƚĞĚŽŶĚŝƚŝŽŶŶŽ͘ϭϬŝŶƌĞŐĂƌĚƐƚŽƚŚĞǁĞƚůĂŶĚĚĞůŝŶĞĂƚŝŽŶŝƐŐŽŝŶŐƚŚƌŽƵŐŚŽŶƐŝƚĞ ŝŶǀĞƐƚŝŐĂƚŝŽŶ͕ŝĨƚŚĞƌĞƉŽƌƚƐƐƚĂŶĚƐ͖ƐŚĞƌĞĐŽŵŵĞŶĚĞĚƐƚƌŝŬŝŶŐŽĨƚŚĞĐŽŶĚŝƚŝŽŶ͘ Dƌ͘'ĂƌLJEĞƵŵĂŶ͕ƌĞƐŝĚŝŶŐĂƚϭϳϬϴ<ŝŶŐƐZƵŶƌŝǀĞ͕ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ,ŝƐƐƚĂƚĞĚĐŽŶĐĞƌŶǁŝƚŚƚŚĞĨůŽŽĚƐƚƵĚLJ͖ĂŶĚŝŶƚŚĞƉĂƐƚƚŚĞĨůŽŽĚŝŶŐŚĂƐďĞĞŶĂƉƌŽďůĞŵŝŶƚŚĞ ŶĞŝŐŚďŽƌŚŽŽĚ͖ĂŶĚĚŝĚŶŽƚŚĂǀĞĂƉƌŽďůĞŵŵŽǀŝŶŐƚŚĞƉƌŽũĞĐƚŽŶƚŽŽƵŶĐŝů͘ Dƌ͘>ĂƌƌLJŽďďĞ͕ĐŽŶƐƵůƚĂŶƚǁŝƚŚt^ΘƐƐŽĐŝĂƚĞƐ͕ϭϲϰϴdŚŝƌĚǀĞŶƵĞ^ ͕ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂ͕ ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,ĞŶŽƚĞĚĚŝƐĐƵƐƐŝŽŶŚĂǀĞƚĂŬĞŶƉůĂĐĞŝŶƌĞŐĂƌĚƐƚŽƚŚĞďƌŝĚŐĞƵƉƐƚƌĞĂŵŽŶ ƚŚ ϭϴǀĞŶƵĞďĞĐĂƵƐĞƚŚŝƐŝƐƚŚĞĨĂĐƚŽƌŝŶĚĞƚĞƌŵŝŶŝŶŐƚŚĞĨůŽŽĚŝŶŐ͖ƚŚĞĐƵůǀĞƌƚƐŝnjĞƐĂƌĞďĞŝŶŐĞǀĂůƵĂƚĞĚ͘ Dƌ͘'ĂƌLJEĞƵŵĂŶ͕ϭϳϬϴ<ŝŶŐƐZƵŶƌŝǀĞ͕ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,ĞŶŽƚĞĚ ƚŚĞďƌŝĚŐĞŽƉĞŶŝŶŐǁĂƐǁŝĚĞŶŝŶƐŝnjĞďLJƚŚĞWƵďůŝĐtŽƌŬƐĂŶĚŵĂLJďĞĂƉƌŽďůĞŵŽĨƌĞĐĞŶƚĐƌĞĂƚŝŽŶ͘ tŝƚŚŶŽŽŶĞĞůƐĞǁŝƐŚŝŶŐƚŽďĞŚĞĂƌĚ͕Dƌ͘tĂůƚĞƌƐĐůŽƐĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ DƐ͘^ĞĂďƌŽŽŬĂƐŬĞĚĨŽƌŵŽƌĞŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚĞĨůŽŽĚƐƚƵĚŝĞƐŝŶƚŚĞŝƌƌĞǀŝĞǁŽĨƚŚĞƉƌŽũĞĐƚƐ͖ƐŚĞĚŝĚ ŶŽƚĨĞĞůƚŚĞLJƌĞĐĞŝǀĞƚŚĞĚĞƚĂŝůƐŶĞĞĚĞĚ͘ Dƌ͘tĂůƚĞƌƐĂƐŬĞĚǁŚŽŝŶƚŚĞŝƚLJĂĐĐĞƉƚƐƚŚĞĨůŽŽĚƐƚƵĚLJŝŶĨŽƌŵĂƚŝŽŶ͘ Dƌ͘,ĂƌĨŽƌĚŶŽƚĞĚWƵďůŝĐtŽƌŬƐŝŶƚŚĞŝƚLJƌĞǀŝĞǁƐƚŚĞĨůŽŽĚƐƚƵĚLJŝŶĨŽƌŵĂƚŝŽŶĂŶĚƐŝŶĐĞƚŚŝƐŝƐĂŶƵŶ Ͳ ƐƚƵĚŝĞĚĂƌĞĂƚŚĞƌĞĂƌĞƐƉĞĐŝĨŝĐĂƐƉĞĐƚƐǁŚŝĐŚǁŝůůďĞƌĞǀŝĞǁĞĚ͕ĂƐŬŝŶŐƚŚĞĂƉƉůŝĐĂŶƚƚŚĞLJŚĂǀĞƐƚƵĚŝĞĚ ƚŚĞĨůŽŽĚŝŵƉĂĐƚƐĂŶĚŝĨĂŶLJŵŝƚŝŐĂƚŝŽŶŶĞĞĚƐƚŽďĞƚĂŬĞŶƉůĂĐĞƐŽŚŽŵĞƐĂƌĞŶŽƚĨůŽŽĚĞĚŽŶƚŚĞƐŽƵƚŚ ƐŝĚĞŽĨƚŚĞĐƌĞĞŬ͘ Dƌ͘ƵƌƐƚŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĂƉƉƌŽǀĂůŽĨWƌĞůŝŵŝŶĂƌLJWůĂƚηZϮϬϭϲ Ͳ ϬϭϲW>dďLJKƌŽŶŽĐŽ /ŶǀĞƐƚŵĞŶƚƐ͕>>ǁŝƚŚƚŚĞƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚƵƉĚĂƚĞĚĨŝŶĚŝŶŐƐĂŶĚĐŽŶĚŝƚŝŽŶƐǁŝƚŚĂƌĞǀŝƐŝŽŶƚŽ ĐŽŶĚŝƚŝŽŶŶŽ͘ϭϬ͘Dƌ͘,ŝůůƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϵ Ͳ Ϭ͘ KE/d/KE^͗ ϭ͘dŚĞ&ůŽŽĚƐƚƵĚLJŵƵƐƚďĞĐŽŵƉůĞƚĞĂŶĚĂĐĐĞƉƚĞĚďLJƚŚĞĐŝƚLJĂŶĚĐŚĂŶŐĞƐŵĂĚĞƚŽƚŚĞ ƉƌĞůŝŵŝŶĂƌLJƉůĂƚƉƌŝŽƌƚŽƐĐŚĞĚƵůŝŶŐƚŚĞŝƚLJŽƵŶĐŝůŚĞĂƌŝŶŐ Ϯ͘dŚĞƐƚĂƚƵƐŽĨƚŚĞ'ƌĂĚŝŶŐĂŶĚ^ƚŽƌŵǁĂƚĞƌDĂŶĂŐĞŵĞŶƚWůĂŶƐŚĂůůďĞĂƉƉƌŽǀĞĚ͕ŽƌĂƉƉƌŽǀĞĚ ǁŝƚŚĐŽŶĚŝƚŝŽŶƐ͕ƉƌŝŽƌƚŽƐƵďŵŝƚƚŝŶŐƚŚĞ&ŝŶĂůWůĂƚ͘^ƵďŵŝƚƚĂůŽĨĂ&ŝŶĂůWůĂƚƉƌŝŽƌƚŽĨŝŶĂů'ƌĂĚŝŶŐ ĂŶĚ^ƚŽƌŵǁĂƚĞƌDĂŶĂŐĞŵĞŶƚWůĂŶĂƉƉƌŽǀĂůŽƌĂƉƉƌŽǀĂůǁŝƚŚĐŽŶĚŝƚŝŽŶƐƌĞƋƵŝƌĞƐĂƵƚŚŽƌŝnjĂƚŝŽŶ ĨƌŽŵƚŚĞŝƚLJ ŶŐŝŶĞĞƌ͘WĂLJŵĞŶƚŽĨĂŶLJĂƉƉůŝĐĂďůĞ^ƚŽƌŵtĂƚĞƌDĂŶĂŐĞŵĞŶƚWůĂŶƌĞĂŚĂƌŐĞ ;^tDWͿŝƐĚƵĞĐŽŶĐƵƌƌĞŶƚǁŝƚŚ'ƌĂĚŝŶŐWůĂŶĂƉƉƌŽǀĂůƐ͘ ϯ͘KƵƚůŽƚŝĨŝŶƚĞŶĚĞĚĨŽƌĂĨƵƚƵƌĞƌŽĂĚĐŽŶŶĞĐƚŝŽŶƐŚŽƵůĚŵĞĞƚƐƉĂĐŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐĨƌŽŵ ŝŶƚĞƌƐĞĐƚŝŽŶƐĂƐƌĞƋƵŝƌĞĚďLJƚŚĞ>ĂŶĚĞǀĞůŽƉŵĞŶƚDĂŶƵĂů͘ ϰ͘&Žƌ'ĞŽƌŐĞƚŽǁŶĞƌEtƚŽďĞƵƚŝůŝnjĞĚĨŽƌƚŚŝƐĚĞǀĞůŽƉŵĞŶƚ͕ƚŚĞĚĞĚŝĐĂƚŝŽŶŽĨĂƉƵďůŝĐZKt ĞĂƐĞŵĞŶƚ;ŽƌĚĞĚŝĐĂƚŝŽŶŝŶƚŚĞĨĞĞƚŽƚŚĞŝƚLJͿŝƐƌĞƋƵŝƌĞĚŽǀĞƌͬĨŽƌKƵƚůŽƚ͕'ĞŽƌŐĞƚŽǁŶĞ ,ŽŵĞƐ^ĞĐŽŶĚ^ƵďĚŝǀŝƐŝŽŶ͘ ϱ͘ŶĂĐĐĞƐƐƉĞƌŵŝƚĂŶĚĂŐƌĞĞŵĞŶƚĨƌŽŵŽƵŶƚLJĂŶĚŝƚLJWƵďůŝĐtŽƌŬƐŵƵƐƚďĞŽďƚĂŝŶĞĚƉƌŝŽƌƚŽ ĂŶLJĂĐĐĞƐƐŽƌŽƚŚĞƌĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚLJǁŝƚŚŝŶĂŶLJĐŝƚLJŽƌĐŽƵŶƚLJƌŝŐŚƚŽĨǁĂLJ͘ ϲ͘ĞĚŝĐĂƚŝŽŶŽĨĂĐĐĞƐƐĐŽŶƚƌŽůŝƐƌĞƋƵŝƌĞĚƚŽƚŚĞƐĂƚŝƐĨĂĐƚŝŽŶŽĨƚŚĞŽƵŶƚLJĂŶĚŝƚLJWƵďůŝĐtŽƌŬƐ ĞƉĂƌƚŵĞŶƚƐ͘ ϳ͘ĞĚŝĐĂƚŝŽŶƌĞƋƵŝƌĞŵĞŶƚƐŽĨƉĂƌŬůĂŶĚŵƵƐƚďĞŵĞƚĞŝƚŚĞƌďLJĐĂƐŚŝŶůŝĞƵŽƌĚĞĚŝĐĂƚŝŽŶŽĨůĂŶĚ ƉƌŝŽƌƚŽƌĞĐŽƌĚĂƚŝŽŶŽĨƚŚĞĨŝŶĂůƉůĂƚ͘ )F ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ ϴ͘ŽƵůĞǀĂƌĚƚƌĞĞƐǁŝůůďĞƌĞƋƵŝƌĞĚĨŽƌƚŚĞĚĞǀĞůŽƉŵĞŶƚ͘WƌŝŽƌƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞ ƉƌŽƉĞƌƚLJ͕ƚŚĞKǁŶĞƌƐŚĂůůĚĞƚĞƌŵŝŶĞǁŚŝĐŚŽĨƚŚĞƚǁŽĂǀĂŝůĂďůĞŽƉƚŝŽŶƐ͕WĂLJŵĞŶƚDĞƚŚŽĚŽƌ /ŶƐƚĂůůŽƵůĞǀĂƌĚdƌĞĞƐ͕ǁŝůůďĞƵƐĞĚƚŽŵĞĞƚƚŚĞŝƌďŽƵůĞǀĂƌĚƚƌĞĞŽďůŝŐĂƚŝŽŶƐĨŽƌĞĂĐŚƉŚĂƐĞŽĨ ĚĞǀĞůŽƉŵĞŶƚ͘KŶĐĞƚŚĞŽƉƚŝŽŶŝƐƐĞůĞĐƚĞĚ͕ƚŚĞKǁŶĞƌƐŚĂůůĞŝƚŚĞƌŵĂŬĞĂƉƉůŝĐĂďůĞĐĂƐŚ ƉĂLJŵĞŶƚƚŽƚŚĞZŽĐŚĞƐƚĞƌWĂƌŬΘZĞĐƌĞĂƚŝŽŶĞƉĂƌƚŵĞŶƚŽƌƐƵďŵŝƚĂƉůĂŶƚŝŶŐƉůĂŶƚŽƚŚĞŝƚLJ &ŽƌĞƐƚĞƌĨŽƌĂƉůĂŶƚŝŶŐƉĞƌŵŝƚƉƌŝŽƌƚŽĨŝŶĂůĚĞǀĞůŽƉŵĞŶƚĂƉƉƌŽǀĂů͘dƌĞĞƐƐŚĂůůďĞƉůĂŶƚĞĚĞǀĞƌLJ ϯϱĨĞĞƚ͘ ϵ͘ džĞĐƵƚŝŽŶŽĨĂŝƚLJ Ͳ KǁŶĞƌŽŶƚƌĂĐƚĂŶĚĚĞĚŝĐĂƚŝŽŶŽĨĂŶLJĂƉƉůŝĐĂďůĞƉƵďůŝĐĞĂƐĞŵĞŶƚƐ;ŶŽƚ ƐŚŽǁŶŽŶƚŚĞƉůĂƚͿŝƐƌĞƋƵŝƌĞĚƉƌŝŽƌƚŽĐŽŶƐƚƌƵĐƚŝŽŶŽĨĂŶLJƉƵďůŝĐŝŶĨƌĂƐƚƌƵĐƚƵƌĞĨŽƌƚŚŝƐ ĚĞǀĞůŽƉŵĞŶƚ͘ ϭϬ͘dŚĞƐŽƵƚŚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞƉƌŽƉĞƌƚLJŵƵƐƚŚĂǀĞĂŶƵƉƚŽĚĂƚĞǁĞƚůĂŶĚĚĞůŝŶĞĂƚŝŽŶĐŽŵƉůĞƚĞĚ ƉƌŝŽƌƚŽĨŝŶĂůƉůĂƚĂƉƉƌŽǀĂů͘ ϭϭ͘dŚĞƌĞĂƌĞŝŶĂĚĞƋƵĂƚĞŽŶĂŶĚŽĨĨƐŝƚĞƉƵďůŝĐĨĂĐŝůŝƚŝĞƐ͕ƐƉĞĐŝĨŝĐĂůůLJWƵďůŝĐZŽĂĚǁĂLJƐ͕^ĂŶŝƚĂƌLJ ^ĞǁĞƌ͕tĂƚĞƌ͕ĂŶĚ^ƚŽƌŵtĂƚĞƌDĂŶĂŐĞŵĞŶƚ&ĂĐŝůŝƚŝĞƐ͕ĞdžŝƐƚŝŶŐƚŽĂĐĐŽŵŵŽĚĂƚĞƚŚĞ ĚĞǀĞůŽƉŵĞŶƚŽĨƚŚŝƐWƌŽƉĞƌƚLJ͘EŽĚĞǀĞůŽƉŵĞŶƚǁŝůůďĞĂůůŽǁĞĚƚŽŽĐĐƵƌƵŶƚŝůƚŚĞŝƚLJŽƵŶĐŝů ŚĂƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚĂůůƌĞƋƵŝƌĞĚƉƵďůŝĐĨĂĐŝůŝƚŝĞƐĂƌĞĂĚĞƋƵĂƚĞĨŽƌƐĂŝĚĚĞǀĞůŽƉŵĞŶƚ͘ ůƚĞƌŶĂƚŝǀĞůLJ͕ƚŚĞĚĞǀĞůŽƉĞƌŵĂLJƌĞƋƵĞƐƚƚŽũŽŝŶǁŝƚŚƚŚĞŝƚLJŝŶŵĂŬŝŶŐƚŚĞƐĞŝŶĂĚĞƋƵĂƚĞ ƉƵďůŝĐĨĂĐŝůŝƚŝĞƐĂĚĞƋƵĂƚĞĨŽƌƚŚŝƐĚĞǀĞůŽƉŵĞŶƚ͕ĂŶĚŵĂLJĞŶƚĞƌŝŶƚŽĂĞǀĞůŽƉŵĞŶƚŐƌĞĞŵĞŶƚ͕ ƉƌŝŽƌƚŽƌĞĐŽƌĚŝŶŐĂ&ŝŶĂůWůĂƚĨŽƌƚŚĞƉƌŽƉĞƌƚLJ;ŽƌĨŝŶĂůĚĞǀĞůŽƉŵĞŶƚĂƉƉƌŽǀĂůŝĨƚŚĞƌĞŝƐŶŽƉůĂƚͿ ƚŚĂƚŽƵƚůŝŶĞƐƚŚĞĚĞǀĞůŽƉĞƌΖƐĂŶĚŝƚLJΖƐŽďůŝŐĂƚŝŽŶƐƌĞůĂƚĞĚ͕ďƵƚŶŽƚůŝŵŝƚĞĚƚŽ͗ĂĐĐĞƐƐĐŽŶƚƌŽů͕ ƌŝŐŚƚ Ͳ ŽĨ Ͳ ǁĂLJĚĞĚŝĐĂƚŝŽŶ͕ĂŶĚĂĐĐĞƐƐƚŽĂďƵƚƚŝŶŐƉƌŽƉĞƌƚLJ͕ƐƚŽƌŵǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚ;ŝŶĐůƵĚŝŶŐ ĂŶLJŽďůŝŐĂƚŝŽŶƐĨŽƌŽŶŽƌŽĨĨ Ͳ ƐŝƚĞĨĂĐŝůŝƚŝĞƐͿ͕ƚƌĂŶƐƉŽƌƚĂƚŝŽŶŝŵƉƌŽǀĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐĂŶLJŽĨĨ Ͳ ƐŝƚĞ ŝŵƉƌŽǀĞŵĞŶƚƐŶĞĐĞƐƐĂƌLJƚŽĂĐĐŽŵŵŽĚĂƚĞƚŚŝƐĚĞǀĞůŽƉŵĞŶƚ͕ĂŶĚͬŽƌ͕ĨŝŶĂŶĐŝĂůŽďůŝŐĂƚŝŽŶƐĨŽƌ ŝŵƉƌŽǀĞŵĞŶƚƐƚŽĞdžŝƐƚŝŶŐĂďƵƚƚŝŶŐƌŽĂĚǁĂLJƐ͕ƉĞĚĞƐƚƌŝĂŶĨĂĐŝůŝƚŝĞƐ͕ĐŽŶƚƌŝďƵƚŝŽŶƐĨŽƌĞdžŝƐƚŝŶŐΘ ĨƵƚƵƌĞƉƵďůŝĐŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ůŝŵŝƚĂƚŝŽŶƐƚŽƚƌĂĨĨŝĐŐĞŶĞƌĂƚĞĚďLJƚŚĞƉƌŽƉŽƐĞĚĚĞǀĞůŽƉŵĞŶƚĂŶĚ ƚŚĞĞdžƚĞŶƐŝŽŶŽĨƉƵďůŝĐƵƚŝůŝƚŝĞƐƚŽĂďƵƚƚŝŶŐƉƌŽƉĞƌƚŝĞƐǁŚĞƌĞĂƉƉůŝĐĂďůĞ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĂƉƉƌŽǀĂůŽĨWƌĞůŝŵŝŶĂƌLJWůĂƚηZϮϬϭϲ Ͳ ϬϭϲW>d^ƵďƐƚĂŶƚŝĂů >ĂŶĚůƚĞƌĂƚŝŽŶǁŝƚŚƚŚĞƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚĐŽŶĚŝƚŝŽŶƐ͘Dƌ͘ƵƌƐƚƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞ ŵŽƚŝŽŶĐĂƌƌŝĞĚϵ Ͳ Ϭ͘ ϭ͘ƉƉƌŽǀĞĚŐƌĂĚŝŶŐĂŶĚĞƌŽƐŝŽŶĐŽŶƚƌŽůƉůĂŶŝƐƌĞĐĞŝǀĞĚƉƌŝŽƌƚŽĞdžĐĂǀĂƚŝŽŶĂĐƚŝǀŝƚŝĞƐ͘ KƚŚĞƌƵƐŝŶĞƐƐ͗ ϭ͘WƌĞƐĞŶƚĂƚŝŽŶďLJƌLJĂŶ>Ăǁ͕ŝƚLJdƌĂŶƐŝƚWůĂŶŶĞƌʹ,ĞƉƌĞƐĞŶƚĞĚƚŽƚŚĞŽŵŵŝƐƐŝŽŶƚŚĞƐĐŽƉĞŽĨ ǁŽƌŬĨŽƌƚŚĞdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶĐƵƌƌĞŶƚůLJďĞŝŶŐĐŽŵƉůĞƚĞĚ͘ Ϯ͘ŝƚLJŽƵŶĐŝůDĞĞƚŝŶŐZĞĐĂƉͲWƌĞƐĞŶƚĞĚďLJDƌ͘,ĂƌĨŽƌĚ ϯ͘ƌĂĨƚŽĨWŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚʹdŚŝƐŝƚĞŵǁŝůůďĞƌĞǀŝĞǁĞĚĂƚƚŚĞ:ƵůLJŵĞĞƚŝŶŐ͘ ϰ͘ƐŵĂLJďĞďƌŽƵŐŚƚƵƉǁŝƚŚŵĞŵďĞƌƐ ĚũŽƵƌŶ͗ DŽƚŝŽŶŵĂĚĞďLJDƌ͘^ŝŵƐƚŽĂĚũŽƵƌŶ͕ƐĞĐŽŶĚĞĚďLJDƌ͘'ŽŽĚĞŶďĞƌŐĞƌ͘Dƌ͘tĂůƚĞƌƐ͕ŚĂŝƌ͕ ĂĚũŽƵƌŶĞĚƚŚĞŵĞĞƚŝŶŐĂƚϴ͗ϱϲƉ͘ŵ͘ ZĞƐƉĞĐƚĨƵůůLJ^ƵďŵŝƚƚĞĚ͗ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ DŝƚnjŝĂŬĞƌ͕WůĂŶŶŝŶŐŝƌĞĐƚŽƌDƌ͘DŝĐŚĂĞůtĂůƚĞƌƐ͕ŚĂŝƌ ďĚ _3DJH 3DFNHW3J )G 3DFNHW3J )G 3DFNHW3J )G ^Z/Wd/KE dŚĞEŽƌƚŚĞĂƐƚYƵĂƌƚĞƌŽĨƚŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨ^ĞĐƚŝŽŶϭϱ͕dŽǁŶƐŚŝƉϭϬϳEŽƌƚŚ͕ZĂŶŐĞϭϰtĞƐƚ͕ KůŵƐƚĞĚŽƵŶƚLJ͕DŝŶŶĞƐŽƚĂ͕ y WdƚŚĞEŽƌƚŚϳϱĨĞĞƚƚŚĞƌĞŽĨ͘ >^K͗ dŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨƚŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨ^ĞĐƚŝŽŶϭϱ͕dŽǁŶƐŚŝƉϭϬϳEŽƌƚŚ͕ZĂŶŐĞϭϰtĞƐƚ͕ KůŵƐƚĞĚŽƵŶƚLJ͕DŝŶŶĞƐŽƚĂ͕ y WdƚŚĞEŽƌƚŚϳϱĨĞĞƚƚŚĞƌĞŽĨ͕ĂŶĚ y WdƚŚŽƐĞƉĂƌƚƐƉůĂƚƚĞĚĂƐ /DZZKE^ s Ed,ĂŶĚ/DZZKE /',d,͘ >^K y Wd͗ dŚĂƚƉĂƌƚŽĨƚŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨƚŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨ^ĞĐƚŝŽŶϭϱ͕dŽǁŶƐŚŝƉϭϬϳEŽƌƚŚ͕ZĂŶŐĞ ϭϰtĞƐƚ͕KůŵƐƚĞĚŽƵŶƚLJ͕DŝŶŶĞƐŽƚĂ͕ĚĞƐĐƌŝďĞĚĂƐĨŽůůŽǁƐ͗ ŽŵŵĞŶĐŝŶŐĂƚƚŚĞŶŽƌƚŚǁĞƐƚĐŽƌŶĞƌŽĨƚŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨƐĂŝĚ^ĞĐƚŝŽŶϭϱ͖ƚŚĞŶĐĞ^ŽƵƚŚϬϬ ĚĞŐƌĞĞƐϭϳŵŝŶƵƚĞƐϯϴƐĞĐŽŶĚƐ ĂƐƚ͕ĂƐƐƵŵĞĚďĞĂƌŝŶŐ͕ĂůŽŶŐƚŚĞǁĞƐƚůŝŶĞŽĨƐĂŝĚEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌ͕ ϯϯϴ͘ϬϬĨĞĞƚƚŽƚŚĞƐŽƵƚŚůŝŶĞŽĨƚŚĞEŽƌƚŚϯϯϴ͘ϬϬĨĞĞƚŽĨƐĂŝĚEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌĨŽƌƚŚĞƉŽŝŶƚŽĨ ďĞŐŝŶŶŝŶŐ͖ƚŚĞŶĐĞEŽƌƚŚϴϵĚĞŐƌĞĞƐϯϬŵŝŶƵƚĞƐϭϭƐĞĐŽŶĚƐ ĂƐƚ͕ĂůŽŶŐƐĂŝĚƐŽƵƚŚůŝŶĞ͕ϵϯϴ͘ϴϯĨĞĞƚ͖ ƚŚĞŶĐĞ^ŽƵƚŚϭϲĚĞŐƌĞĞƐϰϮŵŝŶƵƚĞƐϰϴƐĞĐŽŶĚƐtĞƐƚ͕Ϯϭ͘ϳϰĨĞĞƚ͖ƚŚĞŶĐĞ^ŽƵƚŚϱϰĚĞŐƌĞĞƐϭϮŵŝŶƵƚĞƐ ϱϯƐĞĐŽŶĚƐtĞƐƚ͕ϭϳϬ͘ϳϬĨĞĞƚ͖ƚŚĞŶĐĞ^ŽƵƚŚϱϴĚĞŐƌĞĞƐϭϱŵŝŶƵƚĞƐϯϵƐĞĐŽŶĚƐtĞƐƚ͕ϰϯϳ͘ϰϮĨĞĞƚ͖ ƚŚĞŶĐĞ^ŽƵƚŚϬϲĚĞŐƌĞĞƐϯϵŵŝŶƵƚĞƐϭϲƐĞĐŽŶĚƐ ĂƐƚ͕ϭϴ͘ϰϱĨĞĞƚ͖ƚŚĞŶĐĞ^ŽƵƚŚϴϯĚĞŐƌĞĞƐϮϬŵŝŶƵƚĞƐ ϰϰƐĞĐŽŶĚƐtĞƐƚ͕ϰϬ͘ϬϬĨĞĞƚ͖ƚŚĞŶĐĞEŽƌƚŚϬϲĚĞŐƌĞĞƐϯϵŵŝŶƵƚĞƐϭϲƐĞĐŽŶĚƐtĞƐƚ͕Ϯϯ͘ϬϬĨĞĞƚ͖ƚŚĞŶĐĞ ^ŽƵƚŚϴϯĚĞŐƌĞĞƐϰϳŵŝŶƵƚĞƐϱϲƐĞĐŽŶĚƐtĞƐƚ͕ϭϰϴ͘ϲϱĨĞĞƚ͖ƚŚĞŶĐĞ^ŽƵƚŚϲϲĚĞŐƌĞĞƐϰϰŵŝŶƵƚĞƐϮϯ ƐĞĐŽŶĚƐtĞƐƚ͕ϳϳ͘ϰϰĨĞĞƚ͖ƚŚĞŶĐĞ^ŽƵƚŚϴϵĚĞŐƌĞĞƐϰϲŵŝŶƵƚĞƐϭϱƐĞĐŽŶĚƐtĞƐƚ͕ϭϲϬ͘ϴϴĨĞĞƚƚŽƚŚĞ ǁĞƐƚůŝŶĞŽĨƐĂŝĚEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌ͖ƚŚĞŶĐĞEŽƌƚŚϬϬĚĞŐƌĞĞƐϭϳŵŝŶƵƚĞƐϯϴƐĞĐŽŶĚƐtĞƐƚ͕ĂůŽŶŐƐĂŝĚ ǁĞƐƚůŝŶĞ͕ϯϵϬ͘ϬϬĨĞĞƚƚŽƚŚĞƉŽŝŶƚŽĨďĞŐŝŶŶŝŶŐ͘ >^K y Wd͗ ƉĂƌƚŽĨƚŚĞtĞƐƚ,ĂůĨŽĨ^ĞĐƚŝŽŶϭϱ͕dŽǁŶƐŚŝƉϭϬϳEŽƌƚŚ͕ZĂŶŐĞϭϰtĞƐƚ͕KůŵƐƚĞĚŽƵŶƚLJ͕DŝŶŶĞƐŽƚĂ͕ ĚĞƐĐƌŝďĞĚĂƐĨŽůůŽǁƐ͗ ŽŵŵĞŶĐŝŶŐĂƚƚŚĞƐŽƵƚŚǁĞƐƚĐŽƌŶĞƌŽĨƚŚĞEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨƐĂŝĚ^ĞĐƚŝŽŶϭϱ͖ƚŚĞŶĐĞEŽƌƚŚϬϬ ĚĞŐƌĞĞƐϭϮŵŝŶƵƚĞƐϬϳƐĞĐŽŶĚƐtĞƐƚ͕ĂƐƐƵŵĞĚďĞĂƌŝŶŐ͕ĂůŽŶŐƚŚĞǁĞƐƚůŝŶĞŽĨƐĂŝĚEŽƌƚŚǁĞƐƚYƵĂƌƚĞƌ͕ ϭϯϳϭ͘ϰϬĨĞĞƚƚŽƚŚĞŶŽƌƚŚǁĞƐƚĐŽƌŶĞƌŽĨ>Žƚϭ͕ůŽĐŬϭ͕/DZZKE^ s Ed,ĨŽƌƚŚĞƉŽŝŶƚŽĨďĞŐŝŶŶŝŶŐ͖ ƚŚĞŶĐĞEŽƌƚŚϴϵĚĞŐƌĞĞƐϱϱŵŝŶƵƚĞƐϯϰƐĞĐŽŶĚƐ ĂƐƚĂůŽŶŐƚŚĞŶŽƌƚŚůŝŶĞŽĨ/DZZKE^ s Ed,ĂŶĚ /DZZKE /',d,ĂĚŝƐƚĂŶĐĞŽĨϵϱϯ͘ϴϰĨĞĞƚ͖ƚŚĞŶĐĞEŽƌƚŚϬϬĚĞŐƌĞĞƐϭϮŵŝŶƵƚĞƐϬϳƐĞĐŽŶĚƐtĞƐƚ͕ ϮϮϱ͘ϬϬĨĞĞƚ͖ƚŚĞŶĐĞEŽƌƚŚϳϰĚĞŐƌĞĞƐϮϲŵŝŶƵƚĞƐϰϯƐĞĐŽŶĚƐtĞƐƚ͕ϵϵϭ͘ϬϴĨĞĞƚƚŽƚŚĞǁĞƐƚůŝŶĞŽĨƚŚĞ EŽƌƚŚǁĞƐƚYƵĂƌƚĞƌŽĨƐĂŝĚ^ĞĐƚŝŽŶϭϱ͖ƚŚĞŶĐĞ^ŽƵƚŚϬϬĚĞŐƌĞĞƐϭϮŵŝŶƵƚĞƐϬϳƐĞĐŽŶĚƐ ĂƐƚĂůŽŶŐƐĂŝĚ ǁĞƐƚůŝŶĞ͕ϰϵϮ͘ϬϬĨĞĞƚƚŽƚŚĞƉŽŝŶƚŽĨďĞŐŝŶŶŝŶŐ͘ ŽŶƚĂŝŶŝŶŐŝŶĂůů͕ϱϵ͘ϰϵĂĐƌĞƐ͕ŵŽƌĞŽƌůĞƐƐ͘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ƌŝƐƚŝ /ĂĚĚĞĚĂηϰƚŽŵLJĐŽŵŵĞŶƚƐ ŚĂƌůŝĞ &ƌŽŵ͗ZĞŝƚĞƌŚĂƌůŝĞ ^ĞŶƚ͗dŚƵƌƐĚĂLJ͕:ƵŶĞϬϮ͕ϮϬϭϲϭϬ͗ϱϭD dŽ͗'ƌŽƐƐ<ƌŝƐƚŝфŐƌŽƐƐ͘ŬƌŝƐƚŝΛK͘K>D^d ͘DE͘h^х ^ƵďũĞĐƚ͗&ƌŽŵŚĂƌůŝĞZ ͗ZϮϬϭϲ Ͳ ϬϭϲW>d,ƵŶƚĞƌsĂůůĞLJ ƐƚĂƚĞƐ <ƌŝƐƚŝ ,ĞƌĞĂƌĞƚŚĞĐŽŵŵĞŶƚƐ/ŚĂǀĞ ƚŚ ϭͿ/ŶƉƌĞǀŝŽƵƐƌĞǀŝĞǁŽĨƚŚĞ'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶĐŝƚLJĂŶĚĐŽƵŶƚLJƐƚĂĨĨƌĞĐŽŵŵĞŶĚĞĚƚŚĂƚϮϬǀĞEtďĞ ƚŚ ƐŚŝĨƚĞĚĨƵƌƚŚĞƌǁĞƐƚĨƌŽŵǁŚĞƌĞŝƚǁĂƐƐŚŽǁŶŽŶƚŚĞ'WƚŽĂůŽĐĂƚŝŽŶĐŽƌƌĞƐƉŽŶĚŝŶŐƚŽƚŚĞĐƌĞƐƚŽŶϱϱ^ƚ ĂůŝŐŶŵĞŶƚ͘/ƚĂƉƉĞĂƌƐƚŚĂƚŚĂƐďĞĞŶĚŽŶĞƚŚŽƵŐŚƚŚĞůŽĐĂƚŝŽŶŶŽǁƉƌŽƉŽƐĞĚƐŚŽƵůĚďĞĐŽŶĨŝƌŵĞĚǁŝƚŚƚŚĞ KůŵƐƚĞĚŽƵŶƚLJWƵďůŝĐtŽƌŬƐĞƉĂƌƚŵĞŶƚĂƐƚŚĞLJǁŝůůŶĞĞĚƚŽŝƐƐƵĞĂŶĂĐĐĞƐƐƉĞƌŵŝƚĨŽƌƚŚĞŶĞǁƌŽĂĚǁĂLJ ϮͿdŚĞĨŝŶĂůƉůĂƚǁŝůůŶĞĞĚƚŽŝŶĐůƵĚĞƚŚĞǀŝƐƵĂůĚĞƐŝŐŶĂƚŝŽŶŽĨƚŚŽƐĞĨƌŽŶƚĂŐĞƐǁŚĞƌĞĐŽŶƚƌŽůůĞĚĂĐĐĞƐƐŝƐƌĞƋƵŝƌĞĚ͘ ƚŚƚŚ dŚĞŐƌĂƉŚŝĐďĞůŽǁŚŝŐŚůŝŐŚƚƐƚŚĞƐĞĨƌŽŶƚĂŐĞƐ͕ǁŚŝĐŚŝŶĐůƵĚĞŶŽƚŽŶůLJĂůŽŶŐϱϱ^ƚĂŶĚϭϴǀĞďƵƚĂůƐŽďĂĐŬĨŽƌ ĂĚŝƐƚĂŶĐĞŽŶƚŚĞĐŽŶŶĞĐƚŝŶŐƐƚƌĞĞƚƐ ϯͿ^ĂƌĂ>LJŶŶƌŝǀĞĂƚƚŚĞǁĞƐƚĞŶĚŽĨƚŚĞĚĞǀĞůŽƉŵĞŶƚĐŽŶŶĞĐƚƐƚŽ'ĞŽƌŐĞƚŽǁŶƌ͕ǁŚŝĐŚďĂƐĞĚŽŶŽƵƌƉƌŽƉĞƌƚLJ ƌĞĐŽƌĚƐŝŶĨŽƌŵĂƚŝŽŶŝƐůŽĐĂƚĞĚŽŶůĂŶĚŽǁŶĞĚďLJĂŶĞŶƚŝƚLJŶĂŵĞĚD&,ŽůĚŝŶŐƐǁŚŝĐŚƐƵŐŐĞƐƚƐŝƚŝƐĂƉƌŝǀĂƚĞ ƐƚƌĞĞƚ;ĂůƚŚŽƵŐŚƚŚĞƌĞŵĂLJďĞĂŶĞĂƐĞŵĞŶƚĨŽƌƉƵďůŝĐƐƚƌĞĞƚƉƵƌƉŽƐĞƐĞƐƚĂďůŝƐŚĞĚŽŶƚŚŝƐůĂŶĚͿ͘/ĨƚŚŝƐŝƐĂ ƉƌŝǀĂƚĞƐƚƌĞĞƚ͕ŝƚǁŽƵůĚĂƉƉĞĂƌƚŚĞƌĞŶĞĞĚƐƚŽďĞƐŽŵĞƚLJƉĞŽĨĂŐƌĞĞŵĞŶƚďĞƚǁĞĞŶƚŚĞůĂŶĚŽǁŶĞƌƐƚŽƉƌŽǀŝĚĞ ĨŽƌŝƚƐƵƐĞďLJĨƵƚƵƌĞŽǁŶĞƌƐŝŶƚŚĞ,ƵŶƚĞƌsĂůůĞLJƉůĂƚ͘ ϰͿtŚŝůĞƚŚĞƉƵƌƉŽƐĞŽĨKƵƚůŽƚƐĚŽĞƐŶŽƚŶĞĞĚƚŽďĞƐƉĞĐŝĨŝĞĚŽŶƉůĂƚƐ͕KƵƚůŽƚŚĂĚĂƉƉĞĂƌĞĚŽŶƚŚĞŽƌŝŐŝŶĂů'W ĂƐĂƐƚƌĞĞƚĐŽŶŶĞĐƚŝŽŶĂŶĚŐŝǀĞŶŝƚƐϲϬ͛ǁŝĚƚŚĂƉƉĞĂƌƐƚŽďĞůĂŝĚŽƵƚƚŽƐĞƌǀĞĂƐĂƐƚƌĞĞƚ͘ƐǁĂƐƌĞĐŽŵŵĞŶĚĞĚ ĚƵƌŝŶŐƚŚĞ'WƌĞǀŝĞǁďLJďŽƚŚƚŚĞĐŝƚLJĂŶĚĐŽƵŶƚLJWƵďůŝĐtŽƌŬƐĞƉĂƌƚŵĞŶƚƐ;ĂŶĚWůĂŶŶŝŶŐͿĂƐƚƌĞĞƚĐŽŶŶĞĐƚŝŽŶ ŝƐŶŽƚƌĞĐŽŵŵĞŶĚĞĚĂƚƚŚŝƐůŽĐĂƚŝŽŶ͕ĂƐŝƚƐŽĨĨƐĞƚĨƌŽŵZŽLJĂůWůEtĚŽĞƐŶŽƚŵĞĞƚƚŚĞŵŝŶŝŵƵŵƐĞƉĂƌĂƚŝŽŶ ƐƚĂŶĚĂƌĚƐďĞƚǁĞĞŶŝŶƚĞƌƐĞĐƚŝŽŶƐŶŽƚĞĚŝŶϲϰ͘ϭϮϳ;ϱͿŽĨϯϬϬĨĞĞƚĂůŽŶŐĐŽůůĞĐƚŽƌƐƚƌĞĞƚƐĂŶĚƚŚĞdƌĂĨĨŝĐ/ŵƉĂĐƚ ZĞƉŽƌƚĨŽƌƚŚĞƉƌŽũĞĐƚŝŶĚŝĐĂƚĞĚƐƵŝƚĂďůĞƚƌĂĨĨŝĐŽƉĞƌĂƚŝŽŶƐĂƚƚŚĞŽƚŚĞƌĨŽƵƌĞŶƚƌĂŶĐĞƐƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚ ǁŝƚŚŽƵƚƚŚŝƐĂĐĐĞƐƐ͘ ŚĂƌůŝĞ 3DFNHW3J )H &ƌŽŵ͗'ƌŽƐƐ<ƌŝƐƚŝ ^ĞŶƚ͗dŚƵƌƐĚĂLJ͕:ƵŶĞϬϮ͕ϮϬϭϲϵ͗ϱϵD dŽ͗ZĞŝƚĞƌŚĂƌůŝĞфƌĞŝƚĞƌ͘ĐŚĂƌůŝĞΛK͘K>D^d ͘DE͘h^х ^ƵďũĞĐƚ͗ZϮϬϭϲ Ͳ ϬϭϲW>d,ƵŶƚĞƌsĂůůĞLJ ƐƚĂƚĞƐ ŚĂƌůŝĞ͕ dŚĞƌĞǁĂƐĂŶĞƌƌŽƌŝŶƚŚĞƌĞĨĞƌƌĂůƌĞƋƵĞƐƚĨŽƌ,ƵŶƚĞƌsĂůůĞLJ ƐƚĂƚĞƐ͘dŚĞƌĞĨĞƌƌĂůĐŽŵŵĞŶƚƐƐŚŽƵůĚŚĂǀĞďĞĞŶĚƵĞůĂƐƚ ǁĞĞŬ͘,ĂǀĞLJŽƵŐŽƚƚĞŶĂĐŚĂŶĐĞƚŽůŽŽŬĂƚƚŚĞWƌĞůŝŵŝŶĂƌLJWůĂƚ͕ƐƵďƐƚĂŶƚŝĂůůĂŶĚĂůƚĞƌĂƚŝŽŶ͕ĂŶĚĚŽLJŽƵŚĂǀĞĂŶLJ ĐŽŵŵĞŶƚƐLJŽƵĐĂŶĨŽƌǁĂƌĚƚŽŵĞŽŶŝƚ͍DLJƌĞƉŽƌƚŝƐĚƵĞďLJϰƉŵƚŽĚĂLJ͘ dŚĂŶŬLJŽƵ͊ <ƌŝƐƚŝ'ƌŽƐƐ͕/W͕&D WůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ ϮϭϮϮĂŵƉƵƐƌŝǀĞ^ ͕^ƵŝƚĞϭϬϬ WŚŽŶĞ͗;ϱϬϳͿϯϮϴ Ͳ ϳϭϬϮ ŵĂŝů͗ŐƌŽƐƐ͘ŬƌŝƐƚŝΛĐŽ͘ŽůŵƐƚĞĚ͘ŵŶ͘ƵƐ 3DFNHW3J )H 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW3KRQH )H )URP *XQGHUVRQ5DFKHO 7R 'DYLV%HWK 6XEMHFW 3UHOLPLQDU\3ODW53/$7 'DWH 7KXUVGD\0D\ 30 +L%HWK %HORZDUHWKHFRPPHQWVIURP6NLS/DQJHU6RLODQG:DWHUUHJDUGLQJ 3UHOLPLQDU\3ODW 53/$7 ³7KHSURSRVHGSURMHFWDUHDFRQWDLQVZHWODQGVWKDWZLOOQHHGWREHUHGHOLQHDWHGDQG VXEPLWWHGIRUUHYLHZWR/*8,WDSSHDUVWKHSURSRVHGSURMHFWZLOOLPSDFWSXEOLF ZDWHU.LQJ¶V5XQ,WLVXQFOHDUKRZWKHLPSDFWZLOOEHPLWLJDWHGRUUHURXWHG7KLV DFWLYLW\ZLOOUHTXLUHD3XEOLF:DWHU3HUPLWIURPWKH'15(URVLRQFRQWUROEHVW PDQDJHPHQWSUDFWLFHVZLOOQHHGWREHIROORZHGWRSURWHFW',9DQGZHWODQGVGXULQJ JUDGLQJIURPXQSHUPLWWHGLPSDFWDQGVHGLPHQWDWLRQ´ 7KDQNV 5DFKHO*XQGHUVRQ 2OPVWHG&RXQW\3XEOLF:RUNV (QYLURQPHQWDO5HVRXUFHV &DPSXV'U6(6XLWH 5RFKHVWHU01 2 )H -XQH 5RFKHVWHU2OPVWHG &2162/,'$7('3/$11,1*'(3$570(17 &DPSXV'ULYH6( 5RFKHVWHU01 =21(5 =21(5 SROHV FRVW WKH WKH EH HQWLUH LQ ZLOO UHORFDWHUHSODFHUHVHW LPSDFW SROHV GHYHORSHU WKH FKDQJHV HOHFWULF IRU UHVSRQVLEOH WKH PDLQOLQH JUDGH 52: WR ,I )H )URP /DZ%U\DQ 7R 3ODQQLQJ5HIHUUDOV 6XEMHFW 5( 5HTXHVWIRU&RPPHQWV53/$7+XQWHU9DOOH\(VWDWHV 'DWH 0RQGD\0D\ 30 dŚĞŶŽƌƚŚĞĂƐƚĐŽƌŶĞƌŽĨƚŚŝƐƐŝƚĞŝƐĂďŽƵƚϭϰϬϬĨĞĞƚƐŽƵƚŚŽĨƚŚĞZŽƵƚĞϭϮƐƚŽƉĂƚƌŝŵƐŽŶZŝĚŐĞƌ EtĂŶĚϭϴǀĞEt͘dŚĞŶŽƌƚŚǁĞƐƚĞƌŶĐŽƌŶĞƌŽĨƚŚŝƐƐŝƚĞŝƐĂďŽƵƚϳϱϬĨĞĞƚĞĂƐƚŽĨƚŚĞƐƚŽƉĂƚϱϱ^ƚ EtĂŶĚϮϲǀĞEt͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϭϮĂŶĚϮϲ͘dŚĞƌĞŝƐĂĐŽŵƉĂŶŝŽŶƐƚŽƉĨŽƌƚŚĞƐĞ ƌŽƵƚĞƐŽŶƚŚĞŽƚŚĞƌ;ŶŽƌƚŚ͕ŽƌǁĞƐƚďŽƵŶĚͿƐŝĚĞŽĨϱϱ^ƚEt͕ĂƐǁĞůů͘dŚĞƐŽƵƚŚĞĂƐƚĞƌŶĐŽƌŶĞƌŽĨ ƚŚŝƐƐŝƚĞŝƐĂďŽƵƚϭϲϬϬĨĞĞƚŶŽƌƚŚŽĨƚŚĞƐƚŽƉĂƚϰϴ^ƚEtĂŶĚϭϴǀĞEt͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐ ϭϭĂŶĚϮϲ͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬ ĂƐƚZŝǀĞƌZĚE ͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ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±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³IHHWRIPLWLJDWLRQ´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rial]] )LQGLQJVRI)DFW&RQFOXVLRQVRI/DZDQG2UGHU *HQHUDO'HYHORSPHQW3ODQ [[150,925,266,978][11][,I,][Arial]] [[267,925,292,977][11][,,][Arial]] [[150,1033,2386,1086][11][,I,][Arial]]7KH3ODQQLQJ'HSDUWPHQWVWDIIUHYLHZHGWKH*HQHUDO'HYHORSPHQW3ODQDSSOLFDWLRQXVLQJWKHFULWHULD [[225,1144,1706,1197][11][,I,][Arial]]IRXQGDWVHFWLRQDQGUHFRPPHQGHGWKHIROORZLQJILQGLQJVRIIDFW [[225,1256,2322,1309][11][,I,][Arial]]**UDGLQJDQGGUDLQDJHSODQDSSURYDOZLOOEHUHTXLUHGWKURXJKWKHGHYHORSPHQWUHYLHZSURFHVVIRU [[300,1311,2322,1364][11][,I,][Arial]]WKHLQGLYLGXDOORWVDQGSKDVHV'HFRUDK(GJHGRHVQRWH[LVWRQWKHVLWH7KHDSSOLFDQWZLOOEH [[300,1366,2322,1419][11][,I,][Arial]]UHTXLUHGWRFRPSOHWHDIORRGVWXG\DVSDUWRIWKHSUHOLPLQDU\SODWSURFHVV$Q\LQIRUPDWLRQWKDWUHVXOWV [[300,1422,1891,1475][11][,I,][Arial]]IURPWKLVVWXG\ZLOOKDYHWREHFRQVLGHUHGGXULQJWKHGHVLJQRIWKHVLWHOD\RXW [[150,1477,163,1530][11][,I,][Arial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dƌŽLJZ͘ ƌŝĐŬƐŽŶ͕W͘ ͘ tĂƚĞƌZĞƐŽƵƌĐĞƐDĂŶĂŐĞƌ ZŽĐŚĞƐƚĞƌWƵďůŝĐtŽƌŬƐ WŚŽŶĞ͗ϱϬϳ Ͳ ϯϮϴ Ͳ Ϯϰϭϵ 3DFNHW3J )I &Ădž͗ϱϬϳ Ͳ ϯϮϴ Ͳ ϮϰϬϭ ŵĂŝů͗ WHULFNVRQ#URFKHVWHUPQJRY WƵďůŝĐtŽƌŬƐƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ^ƵƌǀĞLJʹ͞zŽƵƌĞdžƉĞƌŝĞŶĐĞǁŝƚŚƵƐŵĂƚƚĞƌƐ͘WůĞĂƐĞůĞƚƵƐŬŶŽǁŚŽǁǁĞĂƌĞĚŽŝŶŐ͘͟ 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( PYLHZ 7KHDSSOLFDQWPXVWVXEPLWGHWDLOIRUWKHH[WHULRUOLJKWLQJLQFOXGLQJDSKRWRPHWULFOLJKWLQJ SODQZKLFKFRPSOLHVZLWKWKHOLJKWLQJVWDQGDUGVZLWKLQWKH2UGLQDQFHZLWKWKHILQDOSODQ VXEPLWWDO 7KH$SSOLFDQWVKDOOSURYLGHDVLJQDJHSODQZLWKLGHQWLI\LQJORFDWLRQVGHVLJQDQGVL]HRI VLJQVZLWKWKHILQDOSODQVXEPLWWDO 7KH$SSOLFDQWVKDOOSURYLGHD6KDGRZ,PSDFWGLDJUDPVKRZLQJDQ\VKDGRZLQJHIIHFWVRQ DGMDFHQWSURSHUW\ZLWKWKHILQDOSODQVXEPLWWDO ) x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x 6DQLWDU\6HZHU$YDLODELOLW\&KDUJH 6$& x :DWHU$YDLODELOLW\&KDUJH :$& x 6WRUP:DWHU0DQDJHPHQW3ODQ$UHD&KDUJH 6:03$& IRUDQ\QHWLQFUHDVHLQ LPSHUYLRXVVXUIDFH x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rial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHDUHVROXWLRQZLWK [[150,2256,950,2313][12][B,I,][Arial]]ILQGLQJVVXSSRUWLQJWKHLUGHFLVLRQ 3DFNHW3J )D $HULDO0DSRI ,QFHQWLYH'HYHORSPHQW3UHOLPLQDU\3ODQ5&83E\WKH&LW\RI5RFKHVWHU $GPLQLVWUDWLRQ7KHDSSOLFDQWSURSRVHVWRFRQVWUXFWD )D )I 5&833DJH 52&+(67(52/067('3/$11,1*'(3$570(17 &DPSXV'ULYH6(6XLWH5RFKHVWHU01 )I 5&833DJH =RQLQJ &'&&%'&HQWUDO'HYHORSPHQW&RUH±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±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±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ó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o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¶ )I 5&833DJH 9HKLFOHHQWUDQFHGULYHVWRSDUNLQJIDFLOLWLHVVKRXOGQRWH[FHHGIHHWRIVWUHHWIURQWDJH (DVW&HQWHU6WUHHW (DVW&HQWHU6WUHHWLVLGHQWLILHGDVDQ$FWLYH3HGHVWULDQ6WUHHW ZLWKLQWKH'32=7KHRUGLQDQFHLQGLFDWHVWKDWDFFHVVWRDSDUNLQJIDFLOLW\VKRXOG QRWEHWDNHQIURPDVWUHHWLGHQWLILHGDVDQ$FWLYH3HGHVWULDQ6WUHHW7KH(DVW&HQWHU 6WUHHWSDUNLQJLVOLPLWHGWR VSDFHVDVVRFLDWHGZLWKWKH%URDGZD\DW&HQWHU 3URMHFW7KHSXEOLFSDUNLQJIDFLOLW\ZLOOQRWDFFHVVDWWKLVORFDWLRQ7KHSULYDWH XQGHUJURXQGSDUNLQJDFFHVVDQGH[LWLVSURSRVHGZLWKD¶´HQWUDQFHGULYHD¶ PHGLDQVSDFHFRQWDLQLQJWKHDFFHVVFRQWUROGHYLFHVDQGD¶´H[LWGULYHIRUDWRWDO RI¶IHHWRIZLGWK 7KHSURSRVHGGULYHZD\DFFHVVIRUWKHXQGHUJURXQGSDUNLQJUDPSH[FHHGWKH IRRWZLGWKLGHQWLILHGXQGHUWKLVRUGLQDQFH VW 6WUHHW6( 7KHSXEOLFSDUNLQJUDPSDFFHVVDQGH[LWLVSURSRVHGDVRQHHQWUDQFH VW ODQHDQGWZRH[LWODQHVZLWKDGHGLFDWHGOHIWDQGULJKWWXUQRQWR6WUHHW6(7KH GULYHZD\LVSURSRVHGDW ¶´7KHVHUYLFHYHKLFOHHQWUDQFHGULYHZD\MXVWZHVWRI WKHSDUNLQJUDPSDFFHVVLV ¶´WKLVDFFHVVDSSHDUVWREHOLPLWHGWRVHUYLFHYHKLFOHV SURYLGLQJGHOLYHU\WRWKH%URDGZD\DW&HQWHU%XLOGLQJ7KH$OOH\LVDWKLUG GULYHZD\HQWUDQFHRQWKHZHVWHUQHGJHRIWKHVLWHWKHZLGWKLVVKRZQDV¶´ WKLVDFFHVVDSSHDUVWRSURYLGHDFFHVVWRWKHVHUYLFHGRFNDQGUHVLGHQWLDOSDUNLQJ DUHDDVVRFLDWHGZLWKWKH%URDGZD\3OD]DEXLOGLQJ VW 7KHIURQWDJHDORQJ6WUHHW6(LQFOXGLQJWKHDOOH\LV¶ ´2SHQLQJVLQWKH EXLOGLQJIDoDGHIRUYHKLFXODUHQWUDQFHDFFRXQWVIRU ¶´RU RIWKHIDoDGH DWWKHJURXQGOHYHOLVGHGLFDWHGDVRSHQLQJVIRUYHKLFXODUWUDIILF 7KHGULYHZD\DFFHVVIRUWKHSXEOLFSDUNLQJUDPSH[FHHGWKHIRRWZLGWKRXWOLQHG XQGHUWKLVVHFWLRQRIWKHRUGLQDQFH VW 5DLOURDG&RUULGRU WKHUDLOURDGZLOOFURVVWKHSXEOLFVLGHZDONDORQJ6WUHHW6( DQG(DVW&HQWHU6WUHHW7KHSODQVGRQRWSURYLGHGHWDLOHGLQIRUPDWLRQRQWKHW\SH RIPDWHULDOVWREHXVHGLQWKHVHORFDWLRQV7KH5DLOURDGDFFHVVRSHQLQJLQWKH EXLOGLQJLVLGHQWLILHGDV¶´LQZLGWKUHTXLUHGFOHDUDQFHQHHGHGIRUVHWVRI WUDFNV5DLOURDG52:RU(DVHPHQWLVVKRZDV¶LQZLGWKWKHUHLVRQHWUDFNLQ SODFHZLWKDQDSSUR[LPDWH5DLOURDG7UDFNZLGWKRI¶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µ7KH&LW\/RRS´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ó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o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¶VZDWHUV\VWHPSODQVVKDOOUHIOHFWDZDWHUV\VWHPOD\RXWWRLQFOXGH DEDQGRQLQJDQ´H[LVWLQJZDWHUVHUYLFHDORQJ&HQWHU6WUHHWUHORFDWLRQRI´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ƉƉůŝĐĂƚŝŽŶEĂŵĞŽŵŵĞŶƚ 53UHPLHU6WDWH1RFRPPHQWV 3/$7%DQN5RFKHVWHU 5&LW\RI,VWKHUHHQRXJKFOHDUDQFHLQSURSRVHGWXQQHOVHFWLRQWKDWD &835RFKHVWHUWUDLOIDFLOLW\IRUELF\FOLVWDQGSHGHVWULDQVFRXOGVKDUHWKH $GPLQLVWUDWLRQWXQQHOZLWKWKHUDLOFRUULGRU"7KLVFRUULGRUZDVSURSRVHG DVSDUWRIWKH'0&'HYHORSPHQW3ODQWRSRWHQWLDOO\ SURYLGHWKHDOLJQPHQWIRUWKH&LW\/RRSGRZQWRZQWUDLO 3DFNHW3J )L [[2036,502,2325,542][8][,I,][Arial Narrow]]7KHKDQGWRUHDFKIRU« [[2324,502,2332,542][8][,I,][Arial Narrow]] '$7( 0D\ )L )URP 6FKQHOO7UDF\ '27 7R 3ODQQLQJ5HIHUUDOV &F 6FKRHQIHOGHU0DUN '27 6FKQHOO7UDF\ '27 6XEMHFW ,QFHQWLYH'HYHORSPHQW3UHOLPLQDU\3ODQ5&83E\WKH&LW\RI5RFKHVWHU$GPLQLVWUDWLRQ 'DWH 7KXUVGD\0D\ 30 dŚŝƐƉƌŽƉŽƐĂůĂƉƉĞĂƌƐƚŽŚĂǀĞŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶDŶKdƌŽĂĚǁĂLJƐĂŶĚŝƐĂĐĐĞƉƚĂďůĞƚŽ DŶKd͘ /ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶηZϮϬϭϲͲϬϭϴhWďLJƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌʹĚŵŝŶŝƐƚƌĂƚŝŽŶ͘ dŚĞĂƉƉůŝĐĂŶƚƉƌŽƉŽƐĞƐƚŽĐŽŶƐƚƌƵĐƚĂϳůĞǀĞůƉĂƌŬŝŶŐƌĂŵƉ͕ĐŽŵŵĞƌĐŝĂůƐƉĂĐĞ͕ĂŶĚϭϬĨůŽŽƌ ĂƉĂƌƚŵĞŶƚďƵŝůĚŝŶŐĂƐĂ^ƚĂŐĞĚĞǀĞůŽƉŵĞŶƚ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨ ͘ĞŶƚĞƌ^ƚƌĞĞƚĂŶĚ Ɛƚ ǁĞƐƚŽĨϭǀĞŶƵĞ^ ͘ dŚĂŶŬLJŽƵ͕ 7UDF\6FKQHOO 7UDQVSRUWDWLRQ3ODQQHU 0Q'27'LVWULFW WK 6WUHHW1: 5RFKHVWHU01 )L )URP /DZ%U\DQ 7R 3ODQQLQJ5HIHUUDOV 6XEMHFW 5( 5HTXHVWIRU&RPPHQWV5&83 'DWH 7KXUVGD\0D\ 30 dŚŝƐƐŝƚĞŝƐĂďůŽĐŬǁĞƐƚŽĨƚŚĞƚƌĂŶƐŝƚƐƚŽƉĂƚĞŶƚĞƌ^ƚĂŶĚϭǀĞ^ ͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϮĂŶĚ Ϯϭ͘/ƚŝƐĂďůŽĐŬĞĂƐƚŽĨƚŚĞƚƌĂŶƐŝƚƐƚŽƉĂƚƌŽĂĚǁĂLJĂŶĚϭ^ƚ^ ͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐϭ͕ϭE͕Ϯ͕ ĂŶĚϮϭ͘ŶĚŝƚŝƐĂďůŽĐŬŶŽƌƚŚŽĨƚŚĞƚƌĂŶƐŝƚƐƚŽƉĂƚϮ^ƚ^ ĂŶĚϭǀĞ^ ͕ǁŚŝĐŚŝƐƐĞƌǀĞĚďLJZŽƵƚĞƐ ϯ͕ϯE͕ϰ͕ϱ͕ϲD͕ϳE͕ϭϲ͕ϭϳ͕ϮϮ͕Ϯϯ͕ĂŶĚϱϱ͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞĨĂůůŽĨϮϬϭϲ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞ͕ ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬ ĂƐƚZŝǀĞƌZĚE ͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ 3DFNHW3J )L )URP *XQGHUVRQ5DFKHO 7R 'DYLV%HWK 6XEMHFW ,QFHQWLYH'HYHORSPHQW3UHOLPLQDU\3ODQ5&83 'DWH 7KXUVGD\0D\ 30 +L%HWK %HORZDUHWKHFRPPHQWVIURP6NLS/DQJHU6RLODQG:DWHUUHJDUGLQJ ,QFHQWLYH 'HYHORSPHQW3UHOLPLQDU\3ODQ5&83 ³12&200(17´ 7KDQNV 5DFKHO*XQGHUVRQ 2OPVWHG&RXQW\3XEOLF:RUNV (QYLURQPHQWDO5HVRXUFHV &DPSXV'U6(6XLWH 5RFKHVWHU01 2 )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ ϭϭ͘/ĨƚŚĞƐĞĂĐĐŽŵŵŽĚĂƚŝŽŶƐĂƌĞĐŽŶƐŝĚĞƌĞĚƚƌĂŶƐŝĞŶƚŚŽƚĞůƚLJƉĞƌŽŽŵƐ͕ƚŚĞŶŶŽĚĞĚŝĐĂƚŝŽŶŝƐƌĞƋƵŝƌĞĚ͘ /ĨƚŚĞLJĂƌĞĐŽŶƐŝĚĞƌĞĚƌĞƐŝĚĞŶƚŝĂůƚŚĞŶĨƵƌƚŚĞƌƌĞǀŝĞǁĂŶĚƉŽƐƐŝďůĞĚĞĚŝĐĂƚŝŽŶŵĂLJďĞƌĞƋƵŝƌĞĚ͘ ϭϮ͘ŽƵůĞǀĂƌĚƚƌĞĞƐǁŝůůďĞƌĞƋƵŝƌĞĚĨŽƌƚŚĞĚĞǀĞůŽƉŵĞŶƚ͘WƌŝŽƌƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞƉƌŽƉĞƌƚLJƚŚĞ KǁŶĞƌƐŚĂůůĚĞƚĞƌŵŝŶĞǁŚŝĐŚŽĨƚŚĞƚǁŽĂǀĂŝůĂďůĞŽƉƚŝŽŶƐ͕WĂLJŵĞŶƚDĞƚŚŽĚŽƌ/ŶƐƚĂůůŽƵůĞǀĂƌĚ dƌĞĞƐ͕ǁŝůůďĞƵƐĞĚƚŽŵĞĞƚƚŚĞŝƌďŽƵůĞǀĂƌĚƚƌĞĞŽďůŝŐĂƚŝŽŶƐĨŽƌĞĂĐŚƉŚĂƐĞŽĨĚĞǀĞůŽƉŵĞŶƚ͘KŶĐĞƚŚĞ ŽƉƚŝŽŶŝƐƐĞůĞĐƚĞĚ͕ƚŚĞKǁŶĞƌƐŚĂůůĞŝƚŚĞƌŵĂŬĞĂƉƉůŝĐĂďůĞĐĂƐŚƉĂLJŵĞŶƚƚŽƚŚĞZŽĐŚĞƐƚĞƌWĂƌŬĂŶĚ ZĞĐƌĞĂƚŝŽŶĞƉĂƌƚŵĞŶƚŽƌƐƵďŵŝƚĂƉůĂŶƚŝŶŐƉůĂŶƚŽƚŚĞŝƚLJ&ŽƌĞƐƚĞƌĨŽƌĂƉůĂŶƚŝŶŐƉĞƌŵŝƚƉƌŝŽƌƚŽ ĨŝŶĂůĚĞǀĞůŽƉŵĞŶƚĂƉƉƌŽǀĂů͘dƌĞĞƐƐŚĂůůďĞƉůĂŶƚĞĚĞǀĞƌLJϯϱĨĞĞƚ͘ ϭϯ͘dŚĞĞdžŝƐƚŝŶŐǁĂƚĞƌƐĞƌǀŝĐĞƐĨŽƌƚŚĞĨŽƌŵĞƌďƵŝůĚŝŶŐƐŽŶƚŚŝƐƐŝƚĞǁĞƌĞŶŽƚƉƌŽƉĞƌůLJĂďĂŶĚŽŶĞĚĂƚƚŚĞ ŵĂŝŶŝŶƚŚĞƐƚƌĞĞƚĂƚƚŚĞƚŝŵĞŽĨƚŚĞĚĞŵŽůŝƚŝŽŶĂŶĚŵƵƐƚďĞƐŚŽǁŶƚŽďĞĚŽŶĞǁŝƚŚƚŚŝƐƉůĂŶ͘dŚŝƐ ŵƵƐƚďĞŶŽƚĞĚŽŶƚŚĞĨŝŶĂůƉůĂŶĂŶĚƚŚĞǁŽƌŬŵƵƐƚďĞĐŽŽƌĚŝŶĂƚĞĚǁŝƚŚZWhtĂƚĞƌĂŶĚďĞĐŽŵƉůĞƚĞĚ ƉƌŝŽƌƚŽĨŝŶŝƐŚŝŶŐƚŚĞďƵŝůĚŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶ͘ ϭϰ͘dŽƚĂůďƵŝůĚŝŶŐƉůƵŵďŝŶŐĨŝdžƚƵƌĞŝŶĨŽƌŵĂƚŝŽŶŵƵƐƚďĞƐƵďŵŝƚƚĞĚƚŽZWhtĂƚĞƌĂƐŝƚďĞĐŽŵĞƐĂǀĂŝůĂďůĞ ƚŽĚĞƚĞƌŵŝŶĞŝĨƚŚĞĞdžŝƐƚŝŶŐϮ͟ĐŽŵƉŽƵŶĚĚŽŵĞƐƚŝĐǁĂƚĞƌŵĞƚĞƌŝƐůĂƌŐĞĞŶŽƵŐŚĨŽƌŚĞƚĞŶƚŝƌĞĐŽŵƉůĞdž ŽƌŝĨŝƚŶĞĞĚƐƚŽďĞƵƉͲƐŝnjĞĚǁŝƚŚƚŚŝƐĂĚĚŝƚŝŽŶ͘/ĨŝƚŝƐĚĞƚĞƌŵŝŶĞĚďLJZWhƚŚĂƚƚŚĞǁĂƚĞƌŵĞƚĞƌŶĞĞĚƐ ƚŽďĞƵƉƐŝnjĞĚ͕ƚŚĞĂƉƉůŝĐĂŶƚƐŚŽƵůĚƐŽƚŚĞŶĐŽŵƉůLJ͘ ŽŶƚŝŶƵĞĚ/ƚĞŵƐ͗ 'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶηZϬϬϯϯϳ'WďLJz,ĂŶĚ ͕>>ƚŽďĞŬŶŽǁŶĂƐ^ĐĞŶŝĐKĂŬƐtĞƐƚ͘dŚĞ ƉůĂŶŝŶĐůƵĚĞƐĨŝǀĞƉĂƌĐĞůƐĐŽǀĞƌŝŶŐϭϳϲĂĐƌĞƐ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚǁĞƐƚŽĨƚŚĞ^ĐĞŶŝĐKĂŬƐ ƐƵďĚŝǀŝƐŝŽŶƐ͕ĞĂƐƚŽĨϯϭƐƚǀĞŶƵĞ^tĂŶĚƐŽƵƚŚŽĨϰϴƚŚ^ƚƌĞĞƚ^tŝŶ^ĞĐƚŝŽŶƐϮϴĂŶĚϯϯŽĨZŽĐŚĞƐƚĞƌ dŽǁŶƐŚŝƉ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞŽŵŵŝƐƐŝŽŶŝŶƌĞŐĂƌĚƐƚŽƚŚĞƌĞĂƐŽŶŝŶŐĨŽƌƚŚĞƌĞƋƵĞƐƚ͘WůĂŶŶŝŶŐ^ƚĂĨĨ ŶŽƚĞĚƚŚĞLJǁŝůůďĞŵĞĞƚŝŶŐǁŝƚŚƚŚĞĚĞǀĞůŽƉĞƌƚŽƌĞƐŽůǀĞƐŽŵĞŽĨƚŚĞĚĞǀĞůŽƉŵĞŶƚĐŽŶĐĞƌŶƐ͘ Dƌ͘^ŝŵƐŵŽǀĞĚƚŽĐŽŶƚŝŶƵĂƚŝŽŶŽĨ'ĞŶĞƌĂůĞǀĞůŽƉŵĞŶƚWůĂŶηZϬϬϯϯϳ'WďLJz,ĂŶĚ ͕>>ƚŽ ďĞŬŶŽǁŶĂƐ^ĐĞŶŝĐKĂŬƐtĞƐƚƚŽƚŚĞ:ƵůLJϭϯ͕ϮϬϭϲWŵĞĞƚŝŶŐ͘Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌƐĞĐŽŶĚĞĚƚŚĞ ŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚƵŶĂŶŝŵŽƵƐůLJ͘ WƵďůŝĐ,ĞĂƌŝŶŐƐ͗ /ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶηZϮϬϭϲͲϬϭϴhWďLJƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌͲĚŵŝŶŝƐƚƌĂƚŝŽŶ͘ dŚĞĂƉƉůŝĐĂŶƚƉƌŽƉŽƐĞƐƚŽĐŽŶƐƚƌƵĐƚĂϳůĞǀĞůƉĂƌŬŝŶŐƌĂŵƉ͕ĐŽŵŵĞƌĐŝĂůƐƉĂĐĞ͕ĂŶĚĂƉŽƚĞŶƚŝĂůĨŽƌĂϭϬ ĨůŽŽƌĂƉĂƌƚŵĞŶƚďƵŝůĚŝŶŐĂƐĂ^ƚĂŐĞĚĞǀĞůŽƉŵĞŶƚ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨ ͘ĞŶƚĞƌ^ƚƌĞĞƚ ĂŶĚǁĞƐƚŽĨϭƐƚǀĞŶƵĞ^ ͘ Dƌ͘ ŶŐĞůƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵŶĞϴϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞĂƚ ƚŚĞZŽĐŚĞƐƚĞƌͲKůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞĐŽŵŵŝƐƐŝŽŶŝŶƌĞŐĂƌĚƐƚŽƚŚĞƐƚŽƌŵǁĂƚĞƌĚĞƐŝŐŶŝŶƚŚĞƉĂƌŬŝŶŐƌĂŵƉ͖ ǀŝďƌĂƚŝŽŶĐŽŶĐĞƌŶƐĞdžƉƌĞƐƐĞĚǁŝƚŚƚŚĞĚĞƐŝŐŶŽĨĂƚƵŶŶĞůĨŽƌƚŚĞƌĂŝůǁĂLJƚƌĂĐŬƐ͖ĂŶĚƉĞĚĞƐƚƌŝĂŶƐĂĨĞƚLJ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ _3DJH 3DFNHW3J )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ Dƌ͘ŝůů,ŝĐŬĞLJ͕ĂƌĐŚŝƚĞĐƚǁŝƚŚŽůůĂďŽƌĂƚŝǀĞĞƐŝŐŶ'ƌŽƵƉ͕ůŽĐĂƚĞĚĂƚϭϬϬWŽƌƚůĂŶĚǀĞŶƵĞ^ŽƵƚŚ͕ DŝŶŶĞĂƉŽůŝƐDŝŶŶĞƐŽƚĂ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,ĞĞdžƉůĂŝŶĞĚƚŚĞĨĞĂƚƵƌĞƐŽĨƚŚĞƉƌŽũĞĐƚ͖ĨŝƌƐƚůĞǀĞů ŝŶĐůƵĚĞƐĐŽŵŵĞƌĐŝĂůͬŵƵůƚŝͲƵƐĞ͕ŚŽǁƚŚĞĨĂĐŝůŝƚŝĞƐǁŝůůĨƵŶĐƚŝŽŶŝŶƌĞůĂƚŝŽŶƚŽƚŚĞƐƚƌĞĞƚƐĂŶĚƌĂŝůǁĂLJ͖ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĂƐŬĞĚĂďŽƵƚĞŶƚƌĂŶĐĞƐŝŶƚŽƚŚĞƉĂƌŬŝŶŐƐƉĂĐĞ͘ Dƌ͘,ŝĐŬĞLJĐŽŶƚŝŶƵĞĚŚŝƐƉƌĞƐĞŶƚĂƚŝŽŶ͘,ĞŶŽƚĞĚƚŚĞůŽǁĞƌůĞǀĞůŝƐƐƚƌĂŝŐŚƚĨŽƌǁĂƌĚƉĂƌŬŝŶŐƐƉĂĐĞƐ͖ƚŚĞ ƐĞĐŽŶĚĨůŽŽƌĂŶĚƵƉƉĞƌůĞǀĞůƐĂƌĞƐƚĂŶĚĂƌĚĚĞƐŝŐŶ͖ĨƵƚƵƌĞ,ĞĞdžƉůĂŝŶĞĚƚŚĞĚŝƌĞĐƚŝŽŶŽĨƚŚĞĚĞƐŝŐŶǁĂƐ ďLJŽƵŶĐŝů͖ĞůĞǀĂƚŝŽŶƐǁĞƌĞƚĂŬĞŶŝŶƚŽĐŽŶƐŝĚĞƌĂƚŝŽŶǁŝƚŚƚŚĞĐƵƌƌĞŶƚĚŽǁŶƚŽǁŶĚĞǀĞůŽƉŵĞŶƚ͖ƚŚĞ ŽƉƚŝŽŶŽĨŚŽƵƐŝŶŐƚŽďĞďŝĚŽƵƚƚŽĂƉƌŝǀĂƚĞŚŽƵƐŝŶŐŵĂŶĂŐĞŵĞŶƚǁĂƐĚŝƌĞĐƚĞĚďLJŽƵŶĐŝů͖ĂŶĚŚĂǀŝŶŐ ƌĞǀŝĞǁĞĚƚŚĞƐƚĂĨĨĐŽŶĚŝƚŝŽŶƐĂŶĚĂƌĞŝŶĂŐƌĞĞŵĞŶƚ͖ŚĞĂĚĚƌĞƐƐĞĚƚŚĞƋƵĞƐƚŝŽŶŽĨǀŝďƌĂƚŝŽŶĨƌŽŵƚŚĞ ƚƌĂŝŶĞĨĨĞĐƚƐŽŶƚŚĞďƵŝůĚŝŶŐ͖ůŝŐŚƚŝŶŐǁĂƐĚŝƐĐƵƐƐĞĚ͘ DƐ͘tŝůƐŽŶĂƐŬĞĚĂďŽƵƚƚŚĞĐůĞĂƌĂŶĐĞŽĨƚŚĞƚƵŶŶĞůĨŽƌĐLJĐůŝƐƚƐ͖ǁŝůůƚŚŝƐďĞĂƐŚĂƌĞĚƐƉĂĐĞ͘ Dƌ͘,ŝĐŬĞLJŶŽƚĞĚƚŚŝƐǁŝůůďĞƵƐĞĚŽŶůLJďLJƚŚĞƚƌĂŝŶ͖ĂƐĂĐŽŶĚŝƚŝŽŶŽĨƚŚĞƐĂůĞŽĨƚŚĞƌĂŝůƌŽĂĚƚŚĞLJƌĞƚĂŝŶƐ ĂƐƉĞĐŝĨŝĞĚĐůĞĂƌĂŶĐĞƐƉĂĐĞĂƐƚŚĞLJĚŽŶŽƚǁĂŶƚĂŶLJƉĞĚĞƐƚƌŝĂŶͬďŝŬĞƚƌĂĨĨŝĐŶĞĂƌƚŚĞƚƌĂĐŬƐ͘ Dƌ͘,ŝůůĂƐŬĞĚĂďŽƵƚƚŚĞƉĂƌŬŝŶŐĨŽƌƚŚĞƉƌŽƉŽƐĞĚŚŽƵƐŝŶŐ͘ Dƌ͘,ŝĐŬĞLJŶŽƚĞĚƚŚĞƌĞŝƐƌŽŽŵĨŽƌĂĚĚŝŶŐŵŽƌĞƐƉĂĐĞƐƵŶĚĞƌƚŚĞďĂƐĞŽĨƚŚĞƚŽǁĞƌĨŽƌƚŚĞŚŽƵƐŝŶŐ ƵŶŝƚƐ͖ĂŶĚĨŽƌƉŽƐƐŝďůĞƵƐĞĚďLJƚŚĞƉƵďůŝĐ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĂƐŬĞĚŝĨŶŽƚŽŶůLJƚŚĞDŐƵŝĚĞůŝŶĞƐůŽŽŬĞĚĂƐǁĞůůĂƐƚŚĞƉĂƐƚŽǁŶƚŽǁŶDĂƐƚĞƌ ƉůĂŶǁĂƐůŽŽŬĞĚĂƚŝŶƉĂƌƚŝĐƵůĂƌƚŽƉĂƌŬŝŶŐƐƚƌƵĐƚƵƌĞƐ͘ Dƌ͘,ŝĐŬĞLJƐƚĂƚĞĚƚŚĞLJĚŝĚůŽŽŬĂƚƚŚĞŶĞǁƉĂƌŬŝŶŐŶĞĞĚƐĂŶĚƚŚĞůŽƐƐŽĨĐƵƌƌĞŶƚƉĂƌŬŝŶŐ͖ƚŚĞŚĞŝŐŚƚŽĨ ƚŚĞĨĂĐŝůŝƚLJŝƐĚƌŝǀĞŶƚŚĞƵƐĞŽĨƚŚĞƐƉĂĐĞŽĨĐŽŵŵĞƌĐŝĂůͬƌĞƚĂŝůŽŶƚŚĞĨŝƌƐƚůĞǀĞů͖ǁŽƵůĚŵĂŬĞďĞƚƚĞƌƵƐĞ ĂƐĂŵƵůƚŝͲƵƐĞĨĂĐŝůŝƚLJ͘ DƐ͘DĞĞŬƌĞǀŝĞǁĞĚĐŽŶĐĞƌŶƐĨŽƌŶŽƚǁĂŝǀŝŶŐƚŚĞĨŝŶĂůƉůĂŶďĞĐĂƵƐĞƚŚĞƌĞĂƌĞŵĂŶLJĂƐƉĞĐƚƐŽĨƚŚĞ ƉĂƌŬŝŶŐƌĂŵƉǁŚŝĐŚŶĞĞĚƚŽďĞůŽŽŬĞĚĂƚ͘^ŚĞĞdžƉƌĞƐƐĞĚŚŽƉĞƚŚĂƚĂůůĐŽŵŵŝƐƐŝŽŶŵĞŵďĞƌƐǁĞƌĞŽŶ ďŽĂƌĚǁŝƚŚƚŚŝƐĐŽŶĐĞƌŶƐ͖DĚŝƐƚƌŝĐƚŐƵŝĚĞůŝŶĞƐƐƉĞĐŝĨŝĐĂůůLJŶĞĞĚŝŶŐƚŽďĞůŽŽŬĞĚĂƌĞƐŝĚĞǁĂůŬǁŝĚƚŚ Ɛƚ ĐŽŶƐŝƐƚĞŶĐLJ͖ƌĂŝƐĞĚƉůĂŶƚĞƌƐǀĞƌƐƵƐĐƵƚŽƵƚƐǁŝƚŚƚƌĞĞŐƌĂƚĞƐ͖ŵĂdžŝŵŝnjĞƚŚĞďƵŵƉŽƵƚŝŶƚŽϭǀĞŶƵĞĨŽƌ ƚŚĞĚƌŝǀĞůĂŶĞ͖ƐŚĞŶŽƚĞĚƐĂĨĞƚLJŽĨƚŚĞǀĞŚŝĐůĞƐůĞĂǀŝŶŐƚŚĞƉĂƌŬŝŶŐƌĂŵƉďĞŝŶŐĂĐŽŶĐĞƌŶ͖WĂƌŬ͛Ɛ ĚĞƉĂƌƚŵĞŶƚĐŽŶĐĞƌŶǁŝƚŚƚƌĂƐŚƌĞĐĞƉƚĂĐůĞƐďĞĐĂƵƐĞŽĨƐƚĂĨĨŝŶŐůĞǀĞůĨŽƌŵĂŝŶƚĂŝŶŝŶŐ͖ƐƚƌĞĞƚůĞǀĞůůŝŐŚƚŝŶŐ ĨĞĂƚƵƌĞƐĂŶĚƐƚLJůĞĂƌĞŶŽƚŝĚĞŶƚŝĨŝĞĚŽŶƚŚĞƉůĂŶ͖ĞŶƚĞƌƐƚƌĞĞƚĚŽĞƐŶŽƚƉƌŽǀŝĚĞƉĞĚĞƐƚƌŝĂŶĂĐĐĞƐƐŝŶƚŽ ĐŽŵŵĞƌĐŝĂůĂƌĞĂĂŶĚƚŚŝƐĚŽĞƐŶŽƚƐĞĞŵƚŽďĞŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞDŐƵŝĚĞůŝŶĞƐ͖ƌŝƉƌĂƉŽŶƚŚĞ ƚƌĂŝŶƚƌĂĐŬƐŚŽǁĂŶĚǁŚŽǁŝůůŵĂŝŶƚĂŝŶƚŚĞŵĂƚĞƌŝĂůĨŽƌĐůĞĂŶůŝŶĞƐƐ͖ƐŝŐŶĂŐĞĨŽƌƚŚĞďƵŝůĚŝŶŐŝƐŶŽƚ ŝĚĞŶƚŝĨŝĞĚǁŝƚŚĚĞƚĂŝůƐ͖ƚLJƉĞŽĨŐůĂnjŝŶŐŽŶƚŚĞŶŽƌƚŚĐŽŵŵĞƌĐŝĂůƐƉĂĐĞƐŚŽƵůĚďĞƚƌĂŶƐƉĂƌĞŶƚ͘ Dƌ͘^ŝŵƐĂƐŬĞĚ^ƚĂĨĨĂďŽƵƚŵĂƌŬĞƚƌĂƚĞŚŽƵƐŝŶŐ͘ Dƌ͘,ŝĐŬĞLJŶŽƚĞĚƚŚĂƚŝƐŶŽƚƉĂƌƚŽĨƚŚĞŝƌƐĞƌǀŝĐĞƐ͖ƚŚĂƚǁŽƵůĚďĞĂďŝĚĚŝŶŐƉƌŽĐĞƐƐZYW͘ Dƌ͘^ŝŵƐĂƐŬĞĚĂďŽƵƚƉĞĚĞƐƚƌŝĂŶƐĂĨĞƚLJĂƚƚŚĞĞŶĚƐŽĨƚŚĞƚƌĂŝŶƚƵŶŶĞů͘ Dƌ͘,ŝĐŬĞLJŶŽƚĞĚƚŚĞƌĞǁŝůůďĞŐĂƚĞƐ͕ďĞůůƐĂŶĚďůŽĐŬŝŶŐĂŝĚƐŽŶƚŚĞƐŝĚĞǁĂůŬ͘ _3DJH 3DFNHW3J )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ DƐ͘:ƵůŝĞ'ĂLJ͕ƌĞƐŝĚŝŶŐĂƚϮϮEŽƌƚŚƌŽĂĚǁĂLJ͕ZŽĐŚĞƐƚĞƌDŝŶŶĞƐŽƚĂ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘^ŚĞ ůŝǀĞƐŶĞĂƌƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚ͖ƚŚĞƌĂŝůƌŽĂĚƚƌĂĐŬƐĂƌĞĂĐŽŶĐĞƌŶĨŽƌƐĂĨĞƚLJ͖ĂůĂƌŐĞƉŽƉƵůĂƚŝŽŶŽĨƐĞŶŝŽƌ ĐŝƚŝnjĞŶƐĂƌĞůŝǀŝŶŐĚŽǁŶƚŽǁŶ͖ƚŚĞLJĂƌĞƐůŽǁĞƌŵŽǀŝŶŐĐƌŽƐƐŝŶŐƚŚĞƐƚƌĞĞƚ͕ĐƵůƚƵƌĞƐŶŽƚƐƉĞĂŬŝŶŐ ŶŐůŝƐŚ ĂŶĚƌĞƋƵŝƌĞŵĞŶƚƐŶĞĞĚƚŽďĞƌĞĐŽŐŶŝnjĞĚ͘ Dƌ͘<ĞŶŶĞƚŚƵƐŚ͕ƌĞƐŝĚŝŶŐĂƚϮϲϱϵ ƌŝŶ>ĂŶĞE ͕ZŽĐŚĞƐƚĞƌDŝŶŶĞƐŽƚĂϱϱϵϬϲ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĂƐŬĞĚĂďŽƵƚƚŚĞŚŽƵƐŝŶŐĐŽŵƉŽŶĞŶƚƚŚĂƚǁŝůůďĞƉƌŽƉŽƐĞĚǁŝƚŚƚŚĞƐƚƌƵĐƚƵƌĞƐ͖ǁŝůůƚŚŝƐ ďĞĂĨĨŽƌĚĂďůĞŽƌŵĂƌŬĞƚƌĂƚĞ͖ǁŝůůĂĚĚŝƚŝŽŶĂůƉĂƌŬŝŶŐďĞĂĨƵƚƵƌĞŽƉƚŝŽŶ͖ǁŚŽǁŝůůďĞƚŚĞƵůƚŝŵĂƚĞŽǁŶĞƌ ŽĨƚŚĞƉĂƌŬŝŶŐƌĂŵƉ͘ Dƌ͘tĂůƚĞƌƐŶŽƚĞĚƚŚĞŽǁŶĞƌƐŚŝƉŽĨƚŚĞƉĂƌŬŝŶŐƌĂŵƉďĞŝŶŐďLJƚŚĞŝƚLJ͖ƉŽůŝĐĞĚĞƉĂƌƚŵĞŶƚĐŽŶƐŝĚĞƌ ŝŶƐƚĂůůĂƚŝŽŶŽĨƐĞĐƵƌŝƚLJĐĂŵĞƌĂƐĨŽƌƉƵďůŝĐƐĂĨĞƚLJ͖ŚĞŝƐƵŶĚĞƌƚŚĞĂƐƐƵŵƉƚŝŽŶƚŚĞŚŽƵƐŝŶŐǁŝůůďĞŵĂƌŬĞƚ ƌĂƚĞ͘ Dƌ͘ ŶŐĞůŶŽƚĞĚƚŚĂƚƚŚĞƐƵďŵŝƚƚĂůŝŶĨŽƌŵĂƚŝŽŶďLJƚŚĞĂƉƉůŝĐĂŶƚĚŝĚŶŽƚŝĚĞŶƚŝĨLJƚŚĞƚLJƉĞŽĨŚŽƐŝŶŐ ƉƌŽƉŽƐĞĚ͘ Dƌ͘dŽŵ,ĞdžƵŵ͕ƌĞƐŝĚŝŶŐĂƚϰϯϮϱDĂŝŶĞǀĞŶƵĞ^ ͕ZŽĐŚĞƐƚĞƌDŝŶŶĞƐŽƚĂϱϱϵϬϰ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĂƐŬĞĚĂďŽƵƚĂĚĚŝŶŐƉĂƌŬŝŶŐŝŶƐƚĞĂĚŽĨƚŚĞŚŽƵƐŝŶŐ͖ĂŶĚŚĞŶŽƚĞĚŝƚŝƐĂŐƌĞĂƚƉƌŽũĞĐƚ͘ Dƌ͘ŝůů,ŝĐŬĞLJ͕ĂƌĐŚŝƚĞĐƚǁŝƚŚŽůůĂďŽƌĂƚŝǀĞĞƐŝŐŶ'ƌŽƵƉ͕ůŽĐĂƚĞĚĂƚϭϬϬWŽƌƚůĂŶĚǀĞŶƵĞ^ŽƵƚŚ͕ DŝŶŶĞĂƉŽůŝƐDŝŶŶĞƐŽƚĂ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,ĞƐƚĂƚĞĚŚĞĚŽĞƐŶŽƚĂŶƚŝĐŝƉĂƚĞĂĚĚŝŶŐĂŶLJ ĂĚĚŝƚŝŽŶĂůƉĂƌŬŝŶŐďĞĐĂƵƐĞŽĨĐĂƉĂĐŝƚLJŽĨƐƚƌĞĞƚƉĂƌŬŝŶŐ͕ƚŚĞĚĞƐŝŐŶŝƐĂƚŝƚƐŵĂdžŝŵƵŵĨŽƌƉĂƌŬŝŶŐ͕ĂŶĚ ĞdžƉůĂŝŶĞĚƚŚĞďŝĚĚŝŶŐĨĞĂƚƵƌĞƐŽĨĂďĂƐĞďŝĚ͖ĂŶĚĂďŝĚĂůƚĞƌŶĂƚĞĨŽƌĂŶĂĚĚŝƚŝŽŶĂůϭϬĨůŽŽƌ͖ƚŚŝƐŝƐĂƐ ĚŝƌĞĐƚĞĚďLJƚŚĞŽƵŶĐŝů͘ tŝƚŚŶŽŽŶĞĞůƐĞǁŝƐŚŝŶŐƚŽďĞŚĞĂƌĚ͕Dƌ͘tĂůƚĞƌƐĐůŽƐĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŶŽƚĞĚŚŝƐĐŽŶĐĞƌŶƐŽĨƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚǁŝƚŚƚŚĞďŽŶƵƐŝŶƚŚĞĨŽƌ ƐƚƌĞĞƚƐĐĂƉĞƐŝŵƉƌŽǀĞŵĞŶƚďLJĂĚĚŝŶŐƚƌĞĞƐĂƌĞŶŽƚƐƵĨĨŝĐŝĞŶƚ͖ĂŶĂĐƚŝǀĞƐƚƌĞĞƚƐĐĂƉĞŝƐĂƐƚƌĞƚĐŚ͖ƚŚĞ ŝŶƚĞƌŝŽƌƐŝƚĞĚĞƐŝŐŶŶŽƚŵĞĞƚŝŶŐƐƚĂŶĚĂƌĚƐ͖ŚĞŝŐŚƚďĞŝŶŐĂĐŽŶĐĞƌŶǁŝƚŚƚŚĞDƐƵŐŐĞƐƚƐŶŽƉĂƌŬŝŶŐ ƌĂŵƉŵŽƌĞƚŚĂŶϰůĞǀĞůƐ͖ŶŽƚŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞŽǁŶƚŽǁŶDĂƐƚĞƌWůĂŶĂƐŵŝdžĞĚƵƐĞƐ͖ďLJůŽŽŬŝŶŐ ĂƚƚŚĞD'ƵŝĚĞůŝŶĞƐ͖ƚŚĞŽǁŶƚŽǁŶDĂƐƚĞƌƉůĂŶƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚĚŽĞƐŶŽƚŵĞĞƚƚŚŽƐĞƐƚĂŶĚĂƌĚƐ͕ ŶŽƚĞĚĂƐƚŚŝƐŝƐďĞŝŶŐďƌŽƵŐŚƚĨŽƌƚŚďLJƚŚĞŝƚLJĂŶĚƚŽĂƉƌŝǀĂƚĞĚĞǀĞůŽƉĞƌ͘ Dƌ͘ƵƌƐƚĐŽŵŵĞŶƚĞĚƚŚĞŝƚLJŚĂƐĚŽŶĞĂŐŽŽĚũŽďǁŝƚŚƚŚĞƉƌŽũĞĐƚĚĞƐŝŐŶǁŝƚŚƚŚĞƵƐĞŽĨƉƵďůŝĐĨƵŶĚƐ͖ ĂŶĚďĞŝŶŐŐŽŽĚƐƚĞǁĂƌĚƐǁŝƚŚƌĞƐƉĞĐƚƚŽƉƵďůŝĐŵŽŶĞLJ͘ Dƌ͘,ŝůůƐƚĂƚĞĚƚŚĞůŽŽŬŽĨƚŚĞƉĂƌŬŝŶŐƌĂŵƉŝƐĐŽŽůůŽŽŬŝŶŐ͖ǀŝƐŝƚŽƌǁŝůůďĞŝŵƉƌĞƐƐĞĚǁŝƚŚůŽŽŬ͖ĂŶĚŝƐ ŚŝƚƚŝŶŐĂůůƚŚĞƉŽŝŶƚƐŶŽƚĞĚďLJWůĂŶŶŝŶŐ^ƚĂĨĨ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶ ηZϮϬϭϲͲϬϭϴhWƉƌĞůŝŵŝŶĂƌLJƉůĂŶĨŽƌDƵůƚŝͲĨĂŵŝůLJŚŽƵƐŝŶŐŽƉƚŝŽŶŶŽƚŵĞĞƚŝŶŐĐƌŝƚĞƌŝĂϱ͕ϳ͕ĂŶĚϭϭ͘ Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĨĂŝůĞĚϰͲϰ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕Dƌ͘tĂůƚĞƌƐ͕ĂŶĚDƌ͘ ^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘DƐ͘DĞĞŬĂďƐƚĂŝŶĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĂƐŬĞĚŚŽǁƚŚĞŚŽƵƐŝŶŐĐŽŵƉŽŶĞŶƚŵĞĞƚƐƚŚĞĐƌŝƚĞƌŝĂŽĨϱ͕ϳĂŶĚϭϭďLJDƌ͘ƵƌƐƚĂŶĚ Dƌ͘,ŝůů͘ _3DJH 3DFNHW3J )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ƵŶĞϴ͕ϮϬϭϲ Dƌ͘,ŝůůŶŽƚĞĚŝŶƌĞŐĂƌĚƐƚŽƚŚĞŚŽƵƐŝŶŐƉŽƌƚŝŽŶďĞĐĂƵƐĞŽĨƚŚĞǁĂLJŝƚŝƐƉƌŽƉŽƐĞĚĂŶĚŝƚŝƐĂƉůĂŶĨŽƌƚŚĞ ĨƵƚƵƌĞ͖ĂŶĚŝĨƚŚŝƐĂƐƉĞĐƚĚŽĞƐŐŽƚŚƌŽƵŐŚƚŚĞďŝĚĚŝŶŐƉƌŽĐĞƐƐƚŚĞŶƚŚĞƉůĂŶǁŝůůŚĂǀĞƚŽĐŽŵĞďĂĐŬƚŽ ƚŚĞĐŽŵŵŝƐƐŝŽŶĨŽƌƌĞǀŝĞǁ͖ŵĂƐƚĞƌĚŽǁŶƚŽǁŶƉůĂŶĐŽŶƐŝƐƚĞŶĐLJĨŽƌŵŝdžĞĚƵƐĞƚŚĞƌĞŝƐĂŶĞĞĚĨŽƌĂ ŚŝŐŚĞƌĚĞŐƌĞĞĂĐƚŝǀĞůĂŶĚƐĐĂƉĞĂŶĚŽƉĞŶĂƌĞĂƐďƵƚǁŝƚŚĂƉĂƌŬŝŶŐƌĂŵƉĂĚĞǀĞůŽƉĞƌŝƐůŝŵŝƚĞĚǁŝƚŚǁŚĂƚ ƚŚĞLJŚĂǀĞƚŽǁŽƌŬǁŝƚŚ͖ĂĨƵŶĚĂŵĞŶƚĂůŐŽĂůŝƐƚŽĂĚĚƉĂƌŬŝŶŐŽƉƚŝŽŶƐ͖ƚŚĞLJŚĂǀĞǁŽƌŬĞĚǁŝƚŚǁŚĂƚƚŚĞLJ ŚĂǀĞĂŶĚƚŚĞĚĞƐŝŐŶŝƐƐƚŝŵƵůĂƚŝŶŐ͖ƚŚĞŚĞŝŐŚƚŝŵƉĂĐƚƐĂŶĚƚŚĞƌĞĂƌĞŽƚŚĞƌůĂƌŐĞďƵŝůĚŝŶŐƐŝŶƚŚĞĂĚũĂĐĞŶƚ ĂƌĞĂ͖ĂŶĚƚŚĞŶĞĞĚĨŽƌŵŽƌĞƉĂƌŬŝŶŐŝƐǀĂůŝĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĐŽƵŶƚĞƌĞĚǁŝƚŚƚŚĞŵŝdžĞĚƵƐĞĂŶĚĚĞƐŝŐŶƐƚĂŶĚĂƌĚƐƐŚŽƵůĚŝŶĐŽƌƉŽƌĂƚĞĂŶŽƚŚĞƌƵƐĞ ĂůŽŶŐǁŝƚŚƚŚĞƉĂƌŬŝŶŐƵƐĞ͖ǁŚŝĐŚƚŚĞLJŚĂǀĞĚŽŶĞ͕ďƵƚŝƐŶŽƚĚĞƐŝƌĂďůĞǁŝƚŚƚŚĞŽǁŶƚŽǁŶŵĂƐƚĞƌƉůĂŶ͘ DƐ͘^ĞĂďƌŽŽŬƉŽŝŶƚĞĚŽƵƚƚŚĞƐŽĐŝĂůŝŵƉĂĐƚƐŚĂǀĞŶŽƚďĞĞŶĂĚĚƌĞƐƐĞĚ͕ĂƐƚŚĞƚĞĐŚŶŝĐĂůĂƐƉĞĐƚƐŽĨƚŚĞ ƉƌŽũĞĐƚƐŚĂǀĞďĞĞŶĚŝƐĐƵƐƐĞĚ͖ĂŶĚĞdžƉƌĞƐƐĞĚĐŽŶĐĞƌŶƐǁŝƚŚƉĞĚĞƐƚƌŝĂŶƐĂĨĞƚLJŶĞĂƌƚŚĞƉƌŽƉŽƐĞĚƌĂŝůǁĂLJ ƚƵŶŶĞů͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŶŽƚĞĚŚĞĚŝƐĂŐƌĞĞƐǁŝƚŚƚŚĞƉŽŝŶƚŽĨƉĂƌŬŝŶŐƌĂŵƉƐĂƌĞŝŶŚĞƌŝƚĂŶƚůLJƵŐůLJ͖ƚŚĞƌĞĂƌĞ ĚĞƐŝŐŶƐƚŚĂƚĐĂŶƐĐƌĞĞŶƉĂƌŬŝŶŐĂŶĚďůĞŶĚƚŚĞŵŝŶƚŽƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͖ƚŚĞĚŝĨĨŝĐƵůƚŝĞƐĐƌĞĂƚŝŶŐƚŚĞŵŝdžĞĚ ƵƐĞƐǁŚĞŶƚŚĞƚƌĂŝŶƚƌĂĐŬƐĂƌĞĞdžŝƐƚŝŶŐ͖ĂŶĚŝĨƚŚĞŝƚLJĐĂŶ͛ƚŵĞĞƚƚŚĞĚĞƐŝŐŶƐƚŚĞŶŵĂLJďĞƚŚĞLJƐŚŽƵůĚ ŚĂǀĞůŽŽŬĞĚĂƚĂĚŝĨĨĞƌĞŶƚůŽĐĂƚŝŽŶ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWƌĞůŝŵŝŶĂƌLJWůĂŶ ηZϮϬϭϲͲϬϭϴhWƉƌĞůŝŵŝŶĂƌLJŵƵůƚŝͲĨĂŵŝůLJŚŽƵƐŝŶŐŽƉƚŝŽŶĚŽĞƐŶŽƚŵĞĞƚĐƌŝƚĞƌŝĂϳĂŶĚϭϭ͘Dƌ͘^ŝŵƐ ƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶƉĂƐƐĞĚϱͲϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕ĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘ DƐ͘DĞĞŬĂďƐƚĂŝŶĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWůĂŶηZϮϬϭϲͲϬϭϴhW ĨŝŶĂůƉůĂŶͲƉĂƌŬŝŶŐĨĂĐŝůŝƚLJĚŽĞƐŶŽƚŵĞĞƚĐƌŝƚĞƌŝĂϳĂŶĚϭϭ͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞ ŵŽƚŝŽŶƉĂƐƐĞĚϱͲϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕ĂŶĚDƌ͘^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘DƐ͘DĞĞŬĂďƐƚĂŝŶĞĚ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĚĞŶŝĂůŽĨ/ŶĐĞŶƚŝǀĞĞǀĞůŽƉŵĞŶƚWůĂŶηZϮϬϭϲͲϬϭϴhW ĨŝŶĂůƉůĂŶͲĨŽƌƚŚĞŐĂƌĂŐĞŝŶƚŚĞŽǁŶƚŽǁŶWĂƌŬŝŶŐKǀĞƌůĂLJŽŶĞĚŽĞƐŶŽƚŵĞĞƚĐƌŝƚĞƌŝĂϮŽĨƚŚĞ KW͘Dƌ͘^ŝŵƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶƉĂƐƐĞĚϱͲϯ͘Dƌ͘ƵƌƐƚ͕Dƌ͘,ŝůů͕ĂŶĚDƌ͘ ^ŚĞƌǁŽŽĚǀŽƚŝŶŐŶĂLJ͘DƐ͘DĞĞŬĂďƐƚĂŝŶĞĚ͘ &ŝǀĞŵŝŶƵƚĞƌĞĐĞƐƐƚĂŬĞŶ͘ WƌĞůŝŵŝŶĂƌLJWůĂƚηZϮϬϭϲͲϬϭϲW>dďLJKƌŽŶŽĐŽ/ŶǀĞƐƚŵĞŶƚƐ͕>>ƚŽďĞŬŶŽǁŶĂƐ,ƵŶƚĞƌsĂůůĞLJ ƐƚĂƚĞƐ͘ dŚĞϱϵ͘ϰϵĂĐƌĞƉƌŽƉĞƌƚLJŝƐƚŽďĞƐƵďĚŝǀŝĚĞĚŝŶƚŽϮϭůŽƚƐ͕ƚǁŽŽƵƚůŽƚƐĂŶĚƚŚƌĞĞƉƵďůŝĐƐƚƌĞĞƚƐ͘ ^ƵďƐƚĂŶƚŝĂů>ĂŶĚůƚĞƌĂƚŝŽŶŝƐƉƌŽƉŽƐĞĚĨŽƌĂƉŽƌƚŝŽŶŽĨƚŚĞƐŝƚĞ͘dŚĞƉƌŽƉĞƌƚLJŝƐůŽĐĂƚĞĚƐŽƵƚŚŽĨϱϱƚŚ ^ƚƌĞĞƚEtĂŶĚǁĞƐƚŽĨϭϴƚŚǀĞŶƵĞEt͘ DƐ͘'ƌŽƐƐƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ƵŶĞϮ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶĨŝůĞ ĂƚƚŚĞZŽĐŚĞƐƚĞƌͲKůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ DƐ͘>ĞƐůŝĞZŝǀĂƐͲDĐ'ŝůůŝǀƌĂLJ͕ĐŽŶƐƵůƚĂŶƚǁŝƚŚt^ΘƐƐŽĐŝĂƚĞƐ͕ůŽĐĂƚĞĚĂƚϭϲϰϴdŚŝƌĚǀĞŶƵĞ^ ͕ ZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂϱϱϵϬϰ͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘^ŚĞŶŽƚĞĚƚŚĞLJĂƌĞŝŶĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞ _3DJH 3DFNHW3J * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( + 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 3DFNHW3J +D 3DFNHW3J +E + 5(48(67)25&281&,/$&7,21 0((7,1*'$7(