Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
January 18, 2017 Agenda Packet
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³NHHSSROLWLFVRII)DFHERRN´ 1RZ¶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¶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x DPDMRUVXUJHU\IRUDKHDOWKFRQGLWLRQ x UHTXLUHGLQSDWLHQWKRVSLFHRUUHVLGHQWLDOKRVSLWDOFDUH RU x WRFDUHIRUDVSRXVHRUGHSHQGHQWFKLOGZKRLVH[SHULHQFLQJDPHGLFDOFRQGLWLRQWKDWLVOLIHWKUHDWHQLQJRU x ZKRKDVXQGHUJRQHPDMRUVXUJHU\IRUDKHDOWKFRQGLWLRQDQGZKRLVQRWUHFHLYLQJURXQGWKHFORFNFDUHE\ PHGLFDOSURIHVVLRQDOV 3ROLF\ (PSOR\HHVZLVKLQJWRGRQDWHWLPHRIIRUHPSOR\HHVUHTXHVWLQJWRXVHWLPHIURPWKHVKDUHGEDQNPXVWFRPSOHWH WKHSURSHUIRUPVDVDYDLODEOHRQWKH&LW\LQWUDQHW$SSURYDOIRUGRQDWHGWLPHRIIZLOOEHPDGHE\WKH+XPDQ5H VRXUFHV'LUHFWRUZKRPD\UHTXHVWPHGLFDOFHUWLILFDWLRQWRYHULI\HOLJLELOLW\XQGHUWKLVSROLF\$Q\GRQDWHGWLPHLV FRQYHUWHGLQWKHEDQNEDVHGRQWKHGRQRU¶VKRXUO\UDWHRISD\DQGJLYHQWRHOLJLEOHUHFLSLHQWVDVWLPHRIIKRXUV EDVHGRQWKHLUKRXUO\UDWHRISD\,IWKHUHDUHPXOWLSOHHPSOR\HHVHOLJLEOHIRUGRQDWLRQDQGWKHVKDUHGWLPHRIIEDQN LVOLPLWHGWKHYDOXHRIWKHKRXUVDYDLODEOHZLOOEHGLYLGHGHTXDOO\DPRQJHOLJLEOHHPSOR\HHV'RQDWHGOHDYHGRHV QRWOLPLWRUH[WHQGWKHUHFLSLHQW¶VWLPHDYDLODEOHXQGHUWKH)DPLO\DQG0HGLFDO/HDYH$FW [[240,1558,251,1616][12][,I,][Arial Narrow]] [[240,1615,680,1673][12][,I,][Arial Narrow]]7KHGRQDWLQJHPSOR\HH $QHPSOR\HHZLVKLQJWRGRQDWHWLPHRIIPD\GRQDWHXSWRVL[WHHQ KRXUVRIDFFUXHGYDFDWLRQDQGRUWZHQW\ IRXU KRXUVRIFRPSHQVDWRU\WLPHSHUFDOHQGDU\HDU'RQDWLRQVPXVWEHPDGHLQLQFUHPHQWVRIIRXUKRXUVDQG VLFNWLPHKRXUVDUHQRWHOLJLEOHIRUGRQDWLRQ$Q\WLPHGRQDWHGZLOOEHSODFHGLQWKHVKDUHGWLPHRIIEDQNDYDLODEOH WRHOLJLEOHHPSOR\HHV'RQDWLRQVPDGHWRWKHVKDUHGWLPHRIIEDQNDUHQRQUHIXQGDEOHDQGWKHUHDUHQRWD[LPSOL FDWLRQVWRWKHGRQDWLQJHPSOR\HH [[240,1960,251,2018][12][,I,][Arial Narrow]] [[240,2017,687,2075][12][,I,][Arial Narrow]]7KHUHFHLYLQJHPSOR\HH 7REHHOLJLEOHWRUHFHLYHGRQDWHGWLPHRIIIURPWKHVKDUHGEDQNDQHPSOR\HHPXVW EHH[SHULHQFLQJRUKDYHH[SHULHQFHGDVHULRXVPHGLFDOKDUGVKLSRUFDWDVWURSKLFLOOQHVV x EHRXWVLGHRIDQHZKLUHSUREDWLRQDU\SHULRG HPSOR\HHVLQDSURPRWLRQDOSUREDWLRQDU\SHULRGDUHHOLJLEOH x DVORQJDVWKH\KDYHVXFFHVVIXOO\FRPSOHWHGDSUREDWLRQDU\SHULRGDWWKHWLPHRILQLWLDOKLUHZLWKWKH&LW\ EHHPSOR\HGLQDUHJXODUIXOORUSDUWWLPHHPSOR\PHQWVWDWXVZRUNLQJDWOHDVWKRXUVSHUZHHN HPSOR\HHV x ZRUNLQJLQOLPLWHGDSSRLQWPHQWWHPSRUDU\RUVHDVRQDOSRVLWLRQVDUHQRWHOLJLEOHWRUHFHLYHWKLVEHQHILW KDYHH[KDXVWHGDOOSHUVRQDOWLPHRIIEHQHILWV VLFNYDFDWLRQFRPSHQVDWRU\WLPH x QRWEHUHFHLYLQJDSDLGGLVDELOLW\EHQHILWIURPDQ\VRXUFHWKDWLVJUHDWHUWKDQRUHTXDOWREDVHVDODU\ LQ x FOXGLQJDQHPSOR\HUVSRQVRUHGRUSHUVRQDOLQVXUDQFHSROLF\ ,IRWKHUZLVHHOLJLEOHWRUHFHLYHGRQDWHG KRXUVHPSOR\HHVUHFHLYLQJDSDLGGLVDELOLW\EHQHILWOHVVWKDQWKHLUEDVHVDODU\ZRXOGEHHOLJLEOHWRUHFHLYH DSURUDWHGEHQHILWHTXDOLQJWKHGLIIHUHQFHEHWZHHQWKHLUGLVDELOLW\EHQHILWDQGEDVHVDODU\ KDYHQRWEHHQSUHYLRXVO\GLVFLSOLQHGIRUDEXVHRISDLGWLPHRII x ϭ$PDMRUVXUJHU\LVDVXUJLFDOSURFHGXUHWKDWLVH[WHQVLYHLQYROYLQJYLWDORUJDQVDQGRUOLIHWKUHDWHQLQJ 9DFDWLRQWLPHZRXOGDOVRLQFOXGH³VDYHGYDFDWLRQ´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ϭ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¶RXHYUHV KHUHLQDIWHU UHIHUUHGWRDVWKH³&DWHULQJ0DQDJHPHQW6HUYLFHV´ ZKLFKLVKHUHE\GHILQHGDVD SURYLVLRQRIIRRGRUQRQDOFRKROLFEHYHUDJHVHUYLFHVDWDQHYHQWIRUZKLFKD JXDUDQWHHLQWKHQXPEHURIPHDOVRUSHUVRQVWREHVHUYHGKDVEHHQ SUHGHWHUPLQHGE\WKH&HQWHU¶V8VHUDWDQHVWDEOLVKHGSULFHSHUSHUVRQRUSHUPHDO DQGSDLGIRUFROOHFWLYHO\E\8VHU([DPSOHVRIVXFKHYHQWVPD\LQFOXGHEXWDUH QRWOLPLWHGWRPHHWLQJVFRFNWDLOUHFHSWLRQVEDFNVWDJHPHDOVOXQFKHRQVDQG UHIUHVKPHQWEUHDNV1RWZLWKVWDQGLQJWKHIRUHJRLQJ)RRGDQG%HYHUDJH0DQDJHU VKDOOEHGHHPHGD0D\R&LYLF&HQWHU6LJQDWXUH&DWHUHU KHUHLQDIWHUUHIHUUHGWR ³6LJQDWXUH&DWHUHU V ´ DVVXFKWHUPLVXVHGLQ&HQWHULQIRUPDWLRQDODQG SURPRWLRQDOPDWHULDOV DQGVKDOOEHHQWLWOHGWRWKHLGHQWLFDOULJKWVDQGRSSRUWXQLWLHV DIIRUGHGWRRWKHUWKLUGSDUW\FDWHUHUVWKDWKDYHEHHQGHVLJQDWHGDV6LJQDWXUH &DWHUHUV &LW\KHUHE\JUDQWV)RRGDQG%HYHUDJH0DQDJHUVXEMHFWWRWKHWHUPVDQG FRQGLWLRQVRIWKLV$JUHHPHQWWKHH[FOXVLYHULJKWWRVHOODOFRKROLFEHYHUDJHVDWDQ\ HYHQWLQZKLFK&LW\RU&LW\¶V8VHUPDNHVWKHUHTXHVWIRUVHUYLFH&LW\UHWDLQVWKH ULJKWWRGHWHUPLQHZKLFKHYHQWVZLOOLQFOXGHDOFRKROVHUYLFH 1RWZLWKVWDQGLQJWKHH[FOXVLYHULJKWJLYHQWR)RRGDQG%HYHUDJH0DQDJHULQ 6HFWLRQRIWKLV$JUHHPHQWWKH&LW\UHVHUYHVWKHULJKWWRVHOHFWXSWRILYHHYHQWV SHUHDFK\HDUWKURXJKRXWWKH7HUPDQGDQ\([WHQGHG7HUP DVGHILQHGEHORZ WR EHGHWHUPLQHGDW&LW\¶VVROHGLVFUHWLRQ KHUHLQHDFKVXFKHYHQWVKDOOEHVLQJXODUO\ UHIHUUHGWRDVD&LW\6HOHFWHG(YHQW ZKHQWKH&LW\PD\HPSOR\DQGXVHD SURYLGHURWKHUWKDQWKH)RRGDQG%HYHUDJH0DQDJHUWRSURYLGHWKH&LW\ZLWKWKH &RQFHVVLRQ6HUYLFHVGHVFULEHGLQ6HFWLRQH[FOXGLQJWKHVDOHRUGLVWULEXWLRQRI DOFRKROLFEHYHUDJHVWKURXJKRXWWKH&HQWHU KHUHLQUHIHUUHGWRDVWKH&LW\ 6HOHFWHG(YHQW)RRGDQG%HYHUDJH0DQDJHU 7RWKHH[WHQWIHDVLEOHWKH&LW\ DJUHHVWKDWLWZLOOPDNHDOOJRRGIDLWKHIIRUWVWRSURYLGH)RRGDQG%HYHUDJH 0DQDJHUZLWKDWOHDVWGD\V¶QRWLFHRIWKH&LW\¶VLQWHQWWRH[HUFLVHLWVULJKWVXQGHU WKLV6HFWLRQEHIRUHD&LW\6HOHFWHG(YHQW)RRGDQG%HYHUDJH0DQDJHU DJUHHVWKDWLWZLOOQRWKDYHDQ\ULJKWVRUREOLJDWLRQVXQGHUWKLV$JUHHPHQWGXULQJD &LW\6HOHFWHG(YHQW H[FHSWLQJWKRVHREOLJDWLRQVFRQWDLQHGLQ6HFWLRQKHUHLQ KRZHYHUQRWKLQJFRQWDLQHGLQWKLV6HFWLRQVKDOOEHFRQVWUXHGDVSURKLELWLQJWKH &LW\IURPHPSOR\LQJDQGXVLQJWKH)RRGDQG%HYHUDJH0DQDJHULQVRPHFDSDFLW\ DWD&LW\6HOHFWHG(YHQWXSRQVXFKWHUPVDQGFRQGLWLRQVZKLFKDUHDFFHSWDEOHWR WKH&LW\WKH)RRGDQG%HYHUDJH0DQDJHUDQGRWKHUUHOHYDQWSDUWLHV7KH&LW\ DJUHHVWKDWWKH&LW\6HOHFWHG(YHQW)RRGDQG%HYHUDJH0DQDJHUZLOOQRWEH SHUPLWWHGWRDFFHVVRUXVHSURSHUW\RIWKH)RRGDQG%HYHUDJH0DQDJHUWKDWLV VLWXDWHGLQWKH&HQWHUGXULQJD&LW\6HOHFWHG(YHQWXQOHVVRWKHUZLVHDXWKRUL]HGLQ ZULWLQJE\WKH)RRGDQG%HYHUDJH0DQDJHU)RRGDQG%HYHUDJH0DQDJHUPD\LQ Ϯ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³)RRGDQG%HYHUDJH 6HUYLFHV´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ϯ 3DFNHW3J ' E HYHQW V GHWHUPLQHGE\WKH&LW\ZKLFKGHWHUPLQDWLRQVKDOOEHFRPPXQLFDWHGE\ &LW\WR)RRGDQG%HYHUDJH0DQDJHUDVVRRQDVSUDFWLFDEOH )RRGDQG%HYHUDJH0DQDJHUDVD'LUHFW2SHUDWLQJ&RVWVKDOOKLUHHPSOR\DQG FRPSHQVDWHDOOHPSOR\HHVUHDVRQDEO\QHFHVVDU\WRFRQGXFWWKH)RRGDQG%HYHUDJH 6HUYLFHVLQDFFRUGDQFHZLWKLWVSURSRVDORUDVRWKHUZLVHDJUHHGWRE\&LW\,Q DGGLWLRQWRWKHIRUHJRLQJIULQJHEHQHILWVSDLGWRRURQEHKDOIRIDQHPSOR\HHRI)RRG DQG%HYHUDJH0DQDJHUDQG)RRGDQG%HYHUDJH0DQDJHU¶VVKDUHRIDOOIHGHUDOVWDWH DQGORFDOHPSOR\PHQWWD[HVLQFOXGLQ JEXWQRWOLPLWHGWR),&$)87$ZRUNHUV¶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¶VDSSURYDO )RRGDQG%HYHUDJH0DQDJHUDVD'LUHFW2SHUDWLQJ&RVWVKDOOEHUHVSRQVLEOHIRU SURYLGLQJDOOXQLIRUPVIRULWVHPSOR\HHVDQGIRRGEHYHUDJHDQGFOHDQLQJVXSSOLHV ϰ 3DFNHW3J ' E QHFHVVDU\WRFRQGXFWWKH)RRGDQG%HYHUDJH6HUYLFHV7KHTXDOLW\GHVLJQDQG FRORURIDQ\QHZXQLIRUPVVKDOOEHVXEMHFWWR&LW\¶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rial]]HJ [[1460,1039,2147,1091][11][,,][Arial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¶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ϲ 3DFNHW3J ' E DQGDVVLJQV KHUHLQDIWHUUHIHUUHGWRDVWKH)RRGDQG%HYHUDJH0DQDJHU ,QGHPQLILHG3DUWLHV KDUPOHVVIURPDQGDJDLQVWDQ\DQGDOOFODLPVORVVHV GDPDJHVOLDELOLWLHVFRVWVDQGH[SHQVHVLQFOXGLQJUHDVRQDEOHDWWRUQH\V IHHV ZKLFKDULVHRXWRIRUDUHDWWULEXWDEOHWRDQ\IDLOXUHRIWKH&HQWHUDQG&LW\¶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¶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ϳ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¶V'LUHFW2SHUDWLQJ &RVWVLQFXUUHGLQFRQQHFWLRQZLWK)RRGDQG%HYHUDJH0DQDJHU¶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¶V,QGHPQLILHG3DUWLHV IURP DQ\DQGDOOFODLPVIRUSHUVRQDOLQMXU\GHDWKRUSURSHUW\GDPDJHDQGDQ\RWKHU ORVVHVGDPDJHVDQGH[SHQVHVLQFOXGLQJUHDVRQDEOHDWWRUQH\V IHHVZKLFKDULVH RXWRIRUUHODWHLQDQ\ZD\ZKDWVRHYHUZLWKRUE\UHDVRQRIWKH D EUHDFKRIWKLV DJUHHPHQW E QHJOLJHQFHRUPLVFRQGXFWRU F YLRODWLRQRIDSSOLFDEOHODZE\ )RRGDQG%HYHUDJH0DQDJHULWVHPSOR\HHVDJHQWVDVVLJQVRULQYLWHHV SURYLGHG KRZHYHUWKDWQRWKLQJFRQWDLQHGKHUHLQVKDOOUHTXLUH)RRGDQG%HYHUDJH0DQDJHU WRGHIHQGRULQGHPQLI\WKH&LW\¶V,QGHPQLILHG3DUWLHVIRUORVVHVGDPDJHVLQMXULHV RUGHDWKDULVLQJRXWRIDQ\QHJOLJHQFHRUPLVFRQGXFWRI&LW\¶V,QGHPQLILHG3DUWLHV )RRGDQG%HYHUDJH0DQDJHU &LW\¶V ,QGHPQLILHG3DUWLHVKDUPOHVVSXUVXDQWWRWKLV$JUHHPHQWVKDOOEHGHSHQGHQWXSRQ ϵ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¶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¶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ϭϭ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ϭϮ 3DFNHW3J ' E $OOWKHSDUWLHVKHUHWRUHSUHVHQWDQGZDUUDQWHDFKWRWKHRWKHUWKDWWKH\KDYHWKH UHVSHFWLYHULJKWDQGDXWKRULW\WRHQWHULQWRWKLV$JUHHPHQWDQGSHUIRUPWKH REOLJDWLRQVVHWIRUWKKHUHLQ7KHSDUWLHVDFNQRZOHGJHWKDWWKLV$JUHHPHQW FRQVWLWXWHVDOHJDOYDOLGDQGELQGLQJREOLJDWLRQLQDFFRUGDQFHZLWKLWVWHUPV 1RWLFHV $OOQRWLFHVDQGRWKHUFRPPXQLFDWLRQVUHTXLUHGRUSHUPLWWHGWREHJLYHQKHUHXQGHU VKDOOEHLQZULWLQJDQGVKDOOEHGHOLYHUHGE\UHJLVWHUHGRUFHUWLILHGPDLOUHWXUQ UHFHLSWUHTXHVWHGRUE\UHFRJQL]HGRYHUQLJKWGHOLYHU\VHUYLFHDGGUHVVHGDV IROORZV RUWRVXFKRWKHUDGGUHVVDVHLWKHUSDUW\PD\GHVLJQDWHE\QRWLFHLQ DFFRUGDQFHZLWKWKHSURYLVLRQVRIWKLV6HFWLRQ ,IWR&LW\ 0D\R&LYLF&HQWHU ([HFXWLYH'LUHFWRU &LYLF&HQWHU'ULYH6( 5RFKHVWHU01 ,IWR)RRGDQG%HYHUDJH0DQDJHU /DQFHU+RVSLWDOLW\ 0HQGRWD+HLJKWV5RDG 0HQGRWD+HLJKWV01 (DFKVXFKQRWLFHVKDOOEHGHHPHGGHOLYHUHG D RQWKHGDWHGHOLYHUHGLIE\ SHUVRQDOGHOLYHU\ E RQWKHGDWHXSRQZKLFKWKHUHWXUQUHFHLSWLVVLJQHGRU GHOLYHU\LVUHIXVHGRUWKHQRWLFHLVGHVLJQDWHGE\WKHSRVWDODXWKRULWLHVDVQRW GHOLYHUDEOHDVWKHFDVHPD\EHLIPDLOHG $VVLJQDELOLW\ 7KLV$JUHHPHQWVKDOOEHELQGLQJXSRQDQGLQXUHWRWKHEHQHILWRIWKH&LW\DQGWKH )RRGDQG%HYHUDJH0DQDJHUDQGWKHLUUHVSHFWLYHVXFFHVVRUVDQGDVVLJQVDQG H[FHSWDVRWKHUZLVHSURYLGHGKHUHLQQRSDUW\PD\DVVLJQLWVULJKWVRUREOLJDWLRQV XQGHUWKLV$JUHHPHQWZLWKRXWILUVWREWDLQLQJWKHH[SUHVVZULWWHQSHUPLVVLRQRIWKH RWKHUSDUW\ )RRGDQG%HYHUDJH0DQDJHUVKDOOKDYHWKHULJKW D WRDVVLJQWKLV$JUHHPHQWWR DQDIILOLDWHRUWRDVXFFHVVRUWRDOORUDVXEVWDQWLDOSRUWLRQRI)RRGDQG%HYHUDJH 0DQDJHU E WRSOHGJHLWVEHQHILFLDORURWKHUULJKWVXQGHUWKLV $JUHHPHQWDVVHFXULW\WRDOHQGHURUOHQGHULQFRQQHFWLRQZLWKDQ\RI)RRGDQG %HYHUDJH0DQDJHU SULRUZULWWHQ FRQVHQWRIWKH&LW\ZKLFKFRQVHQWVKDOOQRWEHXQUHDVRQDEO\ZLWKKHOG 0LVFHOODQHRXV 7KLV$JUHHPHQWVKDOOEHJRYHUQHGDQGFRQVWUXHGDQGHQIRUFHGLQDFFRUGDQFHZLWK WKHODZVRIWKH6WDWHRI0LQQHVRWD$Q\OHJDODFWLRQVXLWRUSURFHHGLQJEURXJKWE\ HLWKHU&LW\RU)RRGDQG%HYHUDJH0DQDJHULQDQ\ZD\UHODWHGWRRUDULVLQJRXWRI WKLV$JUHHPHQWVKDOOEHEURXJKWLQWKH'LVWULFW&RXUWLQDQGIRU2OPVWHG&RXQW\LQ WKH6WDWHRI0LQQHVRWDDQGHDFKSDUW\KHUHE\DFFHSWVDQGVXEPLWVWRWKH ϭϯ 3DFNHW3J ' E MXULVGLFWLRQRIVXFKVWDWHFRXUWVZLWKUHVSHFWWRDQ\VXFKDFWLRQVXLWRUSURFHHGLQJ EURXJKWE\RUDJDLQVWVXFKSDUW\(DFKSDUW\KHUHWRZDLYHVDQ\REMHFWLRQWRWKH YHQXHIRUDQ\VXFKDFWLRQVXLWRUSURFHHGLQJEHLQJLQVXFKVWDWHFRXUWV7KLV $JUHHPHQWVHWVIRUWKWKHHQWLUHDJUHHPHQWDQGXQGHUVWDQGLQJRIWKHSDUWLHVLQ UHVSHFWWRWKHWUDQVDFWLRQVFRQWHPSODWHGKHUHE\DQGVXSHUVHGHVDOOSULRU DJUHHPHQWVDUUDQJHPHQWVDQGXQGHUVWDQGLQJVUHODWLQJWRWKHVXEMHFWPDWWHU KHUHRI7KHIDLOXUHRIDQ\SDUW\DWDQ\WLPHRUWLPHVWRUHTXLUHSHUIRUPDQFHRIDQ\ SURYLVLRQVKHUHRIVKDOOLQQRPDQQHUDIIHFWWKHULJKWDWDODWHUWLPHWRHQIRUFHWKH VDPH1RZDLYHUE\DQ\SDUW\RIDQ\FRQGLWLRQRURIWKHEUHDFKRIDQ\WHUP FRQWDLQHGLQWKLV$JUHHPHQWZKHWKHUE\FRQGXFWRURWKHUZLVHLQDQ\RQHRUPRUH LQVWDQFHVVKDOOEHGHHPHGWREHFRQVWUXHGDVDIDUWKHURUFRQWLQXLQJZDLYHURIDQ\ VXFKFRQGLWLRQRUEUHDFKRIDQ\VXFKWHUPRUZDLYHURIDQ\RWKHUFRQGLWLRQRU EUHDFKRIDQ\RWKHUWHUPRIWKLV$JUHHPHQW7KLV$JUHHPHQWPD\EHDPHQGHG PRGLILHGVXSHUVHGHGRUFDQFHOHGDQGDQ\RIWKHWHUPVDQGFRQGLWLRQVKHUHRIPD\ EHZDLYHGRQO\E\DZULWWHQLQVWUXPHQWH[HFXWHGE\&LW\DQG)RRGDQG%HYHUDJH 0DQDJHURULQWKHFDVHRIDZDLYHUE\WKHSDUW\ZDLYLQJFRPSOLDQFH 3XEOLF'DWD )RRGDQG%HYHUDJH0DQDJHUDFNQRZOHGJHVDQGDJUHHVWKDWWKLV$JUHHPHQWDQG DOOLQIRUPDWLRQDQGUHIHUHQFHGKHUHLQDUHVXEMHFWWR&KDSWHURIWKH0LQQHVRWD 6WDWXWHV 0LQQHVRWD*RYHUQPHQW'DWD3UDFWLFHV$FW DVZHOODVDQ\RWKHU DSSOLFDEOHIHGHUDOVWDWHDQGORFDOODZVRURUGLQDQFHVDQGDOODSSOLFDEOHUXOHVDQG UHJXODWLRQVDQGVWDQGDUGVHVWDEOLVKHGE\DQ\DJHQF\RIVXFKJRYHUQPHQWDOXQLWV ZKLFKDUHQRZRUKHUHDIWHUSURPXOJDWHGDQGWKXVWKLV$JUHHPHQWDQGDOORUD SRUWLRQRIVXFKLQIRUPDWLRQDQGGRFXPHQWVPD\EHFRQVLGHUHGSXEOLFGDWDWKHUHE\ &RQWUDFW'RFXPHQWV 7KH&RQWUDFW'RFXPHQWVVKDOOFRQVLVWRIWKHIROORZLQJ $9HQGRU¶V3URSRVDOIRU0D\R&LYLF&HQWHU)RRG %HYHUDJH2SHUDWLRQV 0DQDJHPHQW&RQWUDFWVXEPLWWHG$XJXVWDQGSULFHSURSRVDORIVDPH GDWH %&LW\¶V5HTXHVWIRU3URSRVDOV &7KLV$JUHHPHQWZLWK$WWDFKPHQWV '3XEOLF/LDELOLW\,QVXUDQFH&HUWLILFDWH V (&RUSRUDWH$FNQRZOHGJHPHQW 7RWKHH[WHQWWKDWDQ\RIWKHGRFXPHQWVOLVWHGLQ6HFWLRQDUHLQFRQVLVWHQWZLWK WKHWHUPVRIWKLV$JUHHPHQWWKHWHUPVRIWKLV$JUHHPHQWVKDOOFRQWURO 5(0$,1'(52)3$*(,17(17,21$//</()7%/$1. 6,*1$785(672)2//2:213$*( ϭϰ 3DFNHW3J ' E ,1:,71(66:+(5(2) WKHSDUWLHVKDYHGXO\H[HFXWHGWKLV$JUHHPHQWDVRIWKHGDWHILUVW DERYHZULWWHQ %OXH%HOO6HUYLFHV,QF&LW\RI5RFKHVWHU D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ %\ BBBBBBBBBBBBBBBBBBBBBBBBBBBB%\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7LWOH BBBBBBBBBBBBBBBBBBBBBBBBBBB,WV0D\RU $WWHVW BBBBBBBBBBBBBBBBBBBBBBBBBBB ,WV&LW\&OHUN 'DWH BBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH BBBBBBBBBBBBBBBBBBBBBBBBBBBB ϭϱ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ϭϳ 3DFNHW3J ' E 3HUFHQWRI%XGJHWHG3HUFHQWRI0DQDJHPHQW *URVV5HFHLSWV$FKLHYHG,QFHQWLYH)HH(DUQHG /HVVWKDQ ± ± ± ± ± ± ± ±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¶VP\VWHU\VKRSSHU SURJUDPUHVXOWVDVDGPLQLVWHUHGE\VDLGLQGHSHQGHQWWKLUGSDUW\7KHSDUWLHVZLOO PXWXDOO\DJUHHWRWKHIRUPDWDQGFRQWHQWRIDOOVXUYH\V LQFOXGLQJWKRVHRIWKH &HQWHU¶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¶V326DQGLQYHQWRU\FRQWURO V\VWHP7KH)RRGDQG%HYHUDJH0DQDJHUDQGGHVLJQDWHGVWDIIDUHUHVSRQVLEOHIRU GD\WRGD\V\VWHPRSHUDWLRQDORQJZLWKVHWWLQJDQGVWULNLQJRI326ORFDWLRQV $SSURSULDWHWUDLQLQJZLOOEHSURYLGHGE\&LW\DQG&LW\¶V326YHQGRUDWQRFRVWWR)RRG DQG%HYHUDJH0DQDJHU0DLQWHQDQFHRI326VRIWZDUHDQGKDUGZDUHZLOOEHWKH UHVSRQVLELOLW\RI&LW\ F)RRGDQG%HYHUDJH0DQDJHUZLOOEHUHVSRQVLEOHIRUVDOHVDQGLQYHQWRU\WUDFNLQJ XVLQJ&LW\SURYLGHG326 G$OOFDVKUHFHLSWVGHULYHGIURPIRRGDQGEHYHUDJHVDOHVPHUFKDQGLVHFRPPLVVLRQV YHQGLQJPDFKLQHRSHUDWLRQVDQGDQ\RWKHUVDOHRIJRRGVRUVHUYLFHVZLOOEH GHSRVLWHGLQWRWKH&LW\¶VFKHFNLQJDFFRXQWHDFKEXVLQHVVGD\$VHSDUDWHGHSRVLW VKRXOGEHPDGHIRUHDFKHYHQW H)RRGDQG%HYHUDJH0DQDJHUPXVWVXEPLWWR&LW\DQHQGLQJLQYHQWRU\RIDOOSURGXFWV DWWKHFORVHRIHDFKDFFRXQWLQJSHULRG7KLVUHSRUWPXVWGHWDLOXQVROGSURGXFWWKDW ZDVUHPRYHGIURPLQYHQWRU\7KHUHSRUWPXVWLQFOXGHSURGXFWQDPHTXDQWLW\GDWH UHPRYHGDQGUHDVRQIRUUHPRYDO I)RRGDQG%HYHUDJH0DQDJHUXSRQUHFHLSWPXVWVXEPLWWR&LW\FRSLHVRIDOOLQYRLFHV UHTXLULQJSD\PHQW ϭϵ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¶VRSHUDWLRQDWWKH&HQWHU $OOKRXUVIRUZKLFKUHLPEXUVHPHQWLVUHTXHVWHGVKDOOEHFOHDUO\GRFXPHQWHGDQGPXVWLQFOXGHWKH IROORZLQJ $(PSOR\HHQDPH %(PSOR\HHSRVLWLRQ &6WDUWDQGHQGGDWHDQGWLPHRIVHUYLFH '(YHQWGHVFULSWLRQIRUZKLFKVHUYLFHZDVSURYLGHG Ϯϭ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D 0((7,1*'$7( 'E 0D\R&LYLF&HQWHU&RQYHQWLRQ&HQWHU$GGLWLRQ &KDQJH2UGHU'HWDLO /DERU0DWHULDO7RWDO ,WHP'HVFULSWLRQ$PRXQW$PRXQW$PRXQW $GMXVWIRUILQDOVWUXFWUXDOSLOHTXDQWLWLHVDQGOHQJWKV ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( FLW\DORQH7KHUHDUHDOVRVDYLQJVLQVWHDPDQGJDV FRQVXPSWLRQDORQJZLWKPDLQWHQDQFHHTXLSPHQWDQGODERUFRVWV :HHVWLPDWHDLQFUHDVHLQXWLOLW\FRQVXPSWLRQRQFHWKH&RQYHQWLRQ&HQWHUH[SDQVLRQLVLQIXOORSHUDWLRQ 7KHUHIRUHDODUJHSRUWLRQRIWKHH[SDQVLRQ¶VDGGHGXWLOLW\FRVWVZLOOEHRIIVHWE\WKHVDYLQJVIURPWKHVHLPS URYHPHQWV 7KH:2&$PHQGPHQWUHTXLUHV0F.LQVWU\WRFRPSOHWHDOORIWKHVHUHFRPPHQGDWLRQVIRUDFRVWQRWWRH[FHHG 'D 0((7,1*'$7( 5(48(67)25&200,66,21$&7,21 35(3$5('%< $QG\.URJVWDG ,7(0'(6&5,37,21 $SSURYDORI*XDUDQWHHG(QHUJ\6DYLQJV3URJUDP:RUN2UGHU&RQWUDFW$PHQGPHQW ,Q-XO\WKH0&&&DSSURYHGSDUWLFLSDWLRQLQWKH6WDWH¶V*XDUDQWHHG(QHUJ\6DYLQJV3URJUDP *(63 DV DGPLQLVWHUHGE\WKH01'HSDUWPHQWRI&RPPHUFH7KLVDSSURYDOVHWLQPRWLRQWKHVROLFLWDWLRQRISURSRVDOVIRUWKH SUHSDUDWLRQRIDQ,QYHVWPHQW*UDGH$XGLW ,*$ IRUWKHH[LVWLQJ0D\R&LYLF&HQWHUIDFLOLWLHVLQFOXGLQJ$UHQD$XGLWRULXP ([KLELW+DOO1RUWK/REE\5LYHUYLHZ5RRPVDQGVXSSRUWVSDFHV,Q)HEUXDU\RIWKH0&&&DSSURYHGWKHVHOHFWLRQ RI0F.LQVWU\WRFRPSOHWHWKLVWDVNDQGH[HFXWHG:RUN2UGHU&RQWUDFW :2& $PHQGPHQW 7KH,*$ZDVQRWOLPLWHGLQVFRSHLQDQ\ZD\0F.LQVWU\ZDVLQVWUXFWHGWRHYDOXDWHDOOLQWHUQDODQGH[WHUQDOIDFLOLW\ V\VWHPVLQFOXGLQJWKHEXLOGLQJHQYHORSHRIWKHH[LVWLQJIDFLOLW\$IWHUVHYHUDOPRQWKVRIRQVLWHUHYLHZVDQGHQHUJ\ FRQVXPSWLRQVWXGLHV0F.LQVWU\SUHVHQWHGWKHILQDO,*$WRVWDIIRQ'HFHPEHU 0F.LQVWU\SURYLGHVWKHIROORZLQJUHFRPPHQGDWLRQV VXPPDU\ /LJKWLQJ5HWURILW D5HSODFHDOOLQFDQGHVFHQWIOXRUHVFHQWDQGKLJKLQWHQVLW\GLVFKDUJH +,' ODPSV E5HSODFHOLJKWLQJFRQWUROVLQPRVWVSDFHV F,QVWDOOGD\OLJKWLQJFRQWUROV $XGLR6\VWHPV D5HSODFHROGDQGIDLOLQJFRPSRQHQWVLQODUJHYHQXHV JHQHUDOO\H[FOXGHVVSHDNHUUHSODFHPHQW E5HSODFHKLJKHOHFWULFDOFRQVXPSWLRQSRZHUDPSOLILHUVZLWKQHZGLJLWDOWHFKQRORJLHV +9$&,PSURYHPHQWV D$LUKDQGOLQJFRQWUROVFRQYHUWHGIURPSQHXPDWLF FRPSUHVVHGDLU WRGLUHFWGLJLWDOFRQWUROV ''* E9DULDEOHIUHTXHQF\GULYHVDGGHGWRVRPHDLUKDQGOLQJXQLWV F0LVFHOODQHRXVYDOYHUHSODFHPHQWV 7KHSURMHFWHGDQQXDOXWLOLW\VDYLQJVRQFHDOOUHFRPPHQGDWLRQVDUHFRPSOHWHLVHVWLPDWHGDWRU EDVHGRQ XWLOLW\UDWHV 7KLVHTXDWHVWRRYHUN:KRIHOHFWULFLW\DORQH7KHUHDUHDOVRVDYLQJVLQVWHDPDQGJDV FRQVXPSWLRQDORQJPDLQWHQDQFHHTXLSPHQWDQGODERUFRVWV :HHVWLPDWHDLQFUHDVHLQXWLOLW\FRQVXPSWLRQRQFHWKH&RQYHQWLRQ&HQWHUH[SDQVLRQLVLQIXOO RSHUDWLRQ7KHUHIRUHDODUJHSRUWLRQRIWKHH[SDQVLRQ¶VDGGHGXWLOLW\FRVWVZLOOEHRIIVHWE\WKHVDYLQJVIURPWKHVH LPSURYHPHQWV 7KH:2&$PHQGPHQWUHTXLUHV0F.LQVWU\WRFRPSOHWHDOORIWKHVHUHFRPPHQGDWLRQVIRUDFRVWQRWWRH[FHHG 'E 67$7(2)0,11(627$ :RUN2UGHU&RQWUDFW$PHQGPHQW1R &RQWUDFW *(630DVWHU&RQWUDFWXUHVXQGHU0LQQ6WDW 'E 0LQQHVRWD0DQDJHPHQWDQG%XGJHW7KH&RQWUDFWRUZLOOQRWEHUHLPEXUVHGIRUWUDYHODQGVXEVLVWHQFH H[SHQVHVLQFXUUHGRXWVLGH0LQQHVRWDXQOHVVLWKDVUHFHLYHGWKH6WDWH¶VSULRUZULWWHQDSSURYDOIRURXWRI VWDWHWUDYHO0LQQHVRWDZLOOEHFRQVLGHUHGWKHKRPHVWDWHIRUGHWHUPLQLQJZKHWKHUWUDYHOLVRXWRIVWDWHDQG =HURGROODUV ZLOOQRWH[FHHG [[420,413,432,465][11][B,I,][Times New Roman]] [[432,413,744,465][11][B,I,][Times New Roman]]7RWDO2EOLJDWLRQ [[756,413,779,466][11][,,][Times New Roman]] [[778,413,2387,466][11][,,][Times New Roman]]7KHWRWDOREOLJDWLRQRIWKH6WDWH,QVWLWXWLRQIRUDOOFRPSHQVDWLRQDQGUHLPEXUVHPHQWVWR 1LQH7KRXVDQGGROODUV 7ZR0LOOLRQ WKH&RQWUDFWRUXQGHUWKLV:RUN2UGHUZLOOQRWH[FHHG 6L[+XQGUHG7KLUW\6HYHQ7KRXVDQG6HYHQ+XQGUHG7KLUW\6L[GROODUV LQFRUSRUDWHGLQWRWKLV:RUN2UGHU&RQWUDFW [[462,1151,656,1203][11][B,I,][Times New Roman]]5HWDLQDJH [[657,1151,1213,1204][11][,,][Times New Roman]]8QGHU0LQQ6WDW& [[1213,1151,1225,1204][11][,,][Times New Roman]] [[1224,1151,1250,1204][11][,,][Times New Roman]]6 [[1250,1151,2357,1204][11][,,][Times New Roman]]XEG E QRPRUHWKDQ SHUFHQWRIWKHDPRXQWGXHXQGHU DQ\:RUN2UGHUPD\EHSDLGXQWLOWKHILQDOSURGXFWRIWKH:RUN2UGHUKDVEHHQUHYLHZHGE\WKH6WDWH ,QVWLWXWLRQ¶VDJHQF\KHDG7KHEDODQFHGXHZLOOEHSDLGZKHQWKH6WDWH¶VDJHQF\KHDGGHWHUPLQHVWKDW WKH&RQWUDFWRUKDVVDWLVIDFWRULO\IXOILOOHGDOOWKHWHUPVRIWKH:RUN2UGHU 5(9,6,21 ([KLELW$WRWKH:RUN2UGHULVUHSODFHGE\([KLELW$DWWDFKHGDQGLQFRUSRUDWHGKHUHLQE\UHIHUHQFH 5(9,6,21 ([KLELW%WRWKH:RUN2UGHULVUHSODFHGE\([KLELW%DWWDFKHGDQGLQFRUSRUDWHGKHUHLQE\UHIHUHQFH 5(9,6,21 7KHIROORZLQJFODXVHLVDGGHGWRWKH:RUN2UGHU ([KLELWV 7KHIROORZLQJ([KLELWVDUHDWWDFKHGDQGLQFRUSRUDWHGLQWRWKLV:RUN2UGHUE\UHIHUHQFH ([KLELW&±6DYLQJV0HDVXUHPHQWDQG9HULILFDWLRQ3ODQ ([KLELW'±6DYLQJV*XDUDQWHH ([KLELW(±(TXLSPHQW,QVWDOOHGE\&RQWUDFWRU ([KLELW)±&RQVWUXFWLRQDQG,QVWDOODWLRQ6FKHGXOH ([KLELW*±6\VWHP6WDUWXSDQG&RPPLVVLRQLQJ3ODQ ([KLELW+±6WDQGDUGVRI&RPIRUW ([KLELW,±7UDLQLQJE\&RQWUDFWRU ([KLELW-±3URMHFW3UR)RUPD ([KLELW.±5HEDWHV,QFHQWLYHVDQG*UDQWV ([KLELW/±/HDVH3XUFKDVH$JUHHPHQW ([KLELW0±&RQWUDFWRU¶V0HDVXUHPHQWDQG9HULILFDWLRQ6HUYLFHV ([KLELW1±6WDWH,QVWLWXWLRQ¶V0DLQWHQDQFH5HVSRQVLELOLWLHV 5(9,6,21 7KHIROORZLQJFODXVHLVDGGHGWRWKH:RUN2UGHU $WWDFKPHQWV 7KHIROORZLQJ$WWDFKPHQWVDUHDWWDFKHGDQGLQFRUSRUDWHGLQWRWKLV:RUN2UGHUE\UHIHUHQFH $WWDFKPHQW±&HUWLILFDWHRI6XEVWDQWLDO&RPSOHWLRQDQG$FFHSWDQFH $WWDFKPHQW±&HUWLILFDWHRI)LQDO&RPSOHWLRQDQG$FFHSWDQFH 5(9,6,21 $OOZRUNSHUIRUPHGSXUVXDQWWRWKLV:RUN2UGHULVJRYHUQHGE\DOODSSOLFDEOHWHUPVDQGFRQGLWLRQVLQWKH 0DVWHU&RQWUDFWH[HFXWHGE\&RQWUDFWRUDQGWKH6WDWHRI0LQQHVRWD'HSDUWPHQWRI&RPPHUFH :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& :2&$PHQGPHQW1R 5HY 3DFNHW3J 'E 5(9,6,21 7KHIROORZLQJFODXVHLVDGGHGWRWKH:RUN2UGHU [[1388,308,1400,361][11][,I,][Times New Roman]] (9HULI\&HUWLILFDWLRQ ,QDFFRUGDQFHZLWK0LQQ6WDW& 'E ([HFXWLRQSDJHRIWKH6WDWH,QVWLWXWLRQ(QFXPEUDQFH9HULILFDWLRQ 67$7(,167,78,21(1&80%5$1&( 9(5,),&$7,21 [[313,527,716,567][8][,I,][Times New Roman]],QGLYLGXDOFHUWLILHVWKDWIXQGV [[717,527,1231,567][8][,I,][Times New Roman]]KDYHEHHQHQFXPEHUHGDVUHTXLUHGE\ [[312,565,705,605][8][,I,][Times New Roman]]0LQQHVRWD6WDWXWHV6HFWLRQV [[706,565,964,605][8][,I,][Times New Roman]]$DQG& [[965,565,974,605][8][,I,][Times New Roman]] [[315,603,663,643][8][,I,][Times New Roman]] ZLWKGHOHJDWHGDXWKRULW\ 6LJQHG 'DWH :2&1R :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//&6 :2&$PHQGPHQW1R 5HY 3DFNHW3J 'E ([HFXWLRQSDJHRIWKH&RQWUDFWRU &2175$&725 7KH&RQWUDFWRUFHUWLILHVWKDWWKHDSSURSULDWHSHUVRQ V KDYHH[HFXWHGWKH FRQWUDFWRQEHKDOIRIWKH&RQWUDFWRUDVUHTXLUHGE\DSSOLFDEOHDUWLFOHVE\ODZV UHVROXWLRQVRURUGLQDQFHV 6LJQHG 7LWOH 'DWH :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//&6 :2&$PHQGPHQW1R 5HY 3DFNHW3J 'E ([HFXWLRQSDJHRIWKH6WDWH,QVWLWXWLRQ 67$7(,167,78,21 [[313,469,619,509][8][,I,][Times New Roman]],QGLYLGXDOFHUWLILHVWKD [[619,469,1231,509][8][,I,][Times New Roman]]WIXQGVKDYHEHHQHQFXPEHUHGDVUHTXLUHGE\ [[312,508,705,548][8][,I,][Times New Roman]]0LQQHVRWD6WDWXWHV6HFWLRQV [[706,508,964,548][8][,I,][Times New Roman]]$DQG& [[965,508,974,548][8][,I,][Times New Roman]] [[315,546,663,586][8][,I,][Times New Roman]] ZLWKGHOHJDWHGDXWKRULW\ 6LJQHG 7LWOH 'DWH :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//&6 :2&$PHQGPHQW1R 5HY 3DFNHW3J 'E ([HFXWLRQSDJHRIWKH0LQQHVRWD'HSDUWPHQWRI&RPPHUFH 0,11(627$'(3$570(172) &200(5&( ZLWKGHOHJDWHGDXWKRULW\ 6LJQHG 7LWOH 'DWH :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//&6 :2&$PHQGPHQW1R 5HY 3DFNHW3J 'E [[1275,229,1287,286][12][B,I,][Times New Roman]] [[1275,312,1287,369][12][B,I,][Times New Roman]] [[888,396,1662,453][12][B,I,][Times New Roman]] 7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN [[1663,396,1675,453][12][B,I,][Times New Roman]] :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//&6 :2&$PHQGPHQW1R 5HY 3DFNHW3J 'E 3DFNHW3JŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ͕ϮϬй,ŝŐŚͲ ŶĚdƌŝŵϱϭϮKƵƚƉƵƚ͕ϰϬϬϬ<͕tŚŝƚĞ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ͕ϮϬй,ŝŐŚͲ ŶĚdƌŝŵϱϭϮKƵƚƉƵƚ͕ϰϬϬϬ<͕tŚŝƚĞ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ͕ϮϬй,ŝŐŚͲ ŶĚdƌŝŵ ϱϭϮKƵƚƉƵƚ͕ϰϬϬϬ<͕tŚŝƚĞ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ͕&ƵůůKƵƚƉƵƚ ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ Z DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DK s ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕ &ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌ ^</W͕EŽƚ/ŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚ͕> &ŝdžƚƵƌĞ zĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůů ĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳ ǀ͕ZĞŵŽƚĞĂůůĂƐƚ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ ^ƵƌĨĂĐĞDŽƵŶƚĞĚLJůŝŶĚĞƌ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϱϬϬǁ͕ϭϮϬǀ^ƵƌĨĂĐĞDŽƵŶƚĞĚLJůŝŶĚĞƌ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϱϬϬǁ͕ϭϮϬǀ^ƵƌĨĂĐĞDŽƵŶƚĞĚLJůŝŶĚĞƌ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϱϬϬǁ͕ϭϮϬǀ^ƵƌĨĂĐĞDŽƵŶƚĞĚLJůŝŶĚĞƌ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϱ ϬϬǁ͕ϭϮϬǀ^ƵƌĨĂĐĞDŽƵŶƚĞĚLJůŝŶĚĞƌ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϱϬϬǁ͕ϭϮϬǀ EĞǁ/ŶƐƚĂůůĂƚŝŽŶ͕&ĞĞĚ&ƌŽŵ džŝƐƚŝŶŐ>ŝŐŚƚŝŶŐŝƌĐƵŝƚƐEĞǁ/ŶƐƚĂůůĂƚŝŽŶ͕&ĞĞĚ&ƌŽŵ džŝƐƚŝŶŐ>ŝŐŚƚŝŶŐŝƌĐƵŝƚƐEĞǁ/ŶƐƚĂůůĂƚŝŽŶ͕&ĞĞĚ&ƌŽŵ džŝƐƚŝŶŐ>ŝŐŚƚŝŶŐŝƌĐƵŝƚƐ ZŽƵŶĚWĞŶĚĂŶƚ>ƵŵŝŶĂŝƌĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϯϬϬǁ͕ϭϮϬǀ ^ƵƌĨĂĐĞDŽƵŶƚĞĚ'ůŽďĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϱǁ͕ϭϮϬǀ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ /LJKWLQJOLQHE\OLQH tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕> ͕ϭϮϬͬϮϳϳǀ 0F.LQVWU\&R//& ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕>ŽƵǀĞƌ>ĞŶƐ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ ± ± YƚLJ ϰϬϮϲϮϬ ϳϱϳϱϳϱϳϱϳϮϯϮϮϮϮϭϱϯ ϲϰϳϲϲ ϵϵϯϮϮϭϭϯϮ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϮϳϲϰϮϳϲϰϮϳϲϰϮϳϲϰϮϳϲϰϮϳϲϰϮϳϲϰϮϳϲϰϮϳϲϰ ϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮ h/dKZ/hD͕E t>/',d/E'&/ydhZ ͬKEdZK>^h/dKZ/hD͕E t>/',d/E'&/ydhZ ͬKEdZK>^ y,//d,>>͕E t>/',d/E'&/ydhZ ͬKEdZK>^ *(63:RUN2UGHU&RQWUDFW h/dKZ/hDͲd DZKKDͲ>K< h/dKZ/hDͲ<^d' ͕W/Eηϭϯh/dKZ/hDͲ<^d' ͕W/Eηϭϯ h/dKZ/hD^d/Zt >>͕W/EηϯϬ h/dKZ/hD^d/Zt >>͕W/EηϮϵ ,/E^d' ͲKEdZK>ZKKD ,/E^d' ͲKEdZK>ZKKD h/dKZ/hDͲ EdZE Z >ŽĐĂƚŝŽŶh/dKZ/hDͲhE ZEKWz h/dKZ/hDͲtKD E^ZZ h/dKZ/hDͲ,>>tz h/dKZ/hDͲD E^ZZ h/dKZ/hDͲ>K^ d h/dKZ/hD͕W/Eηϭϭh/dKZ/hD͕W/EηϭϮ y,//d,>>ϯ͕W/Eηϰ y,//d,>>Ϯ͕W/Eηϲ y,//d,>>Ϯ͕W/Eηϳ y,//d,>>ϭ͕W/Eηϴ y,//d,>>ϰ͕W/EηϮ y,//d,>>ϰ͕W/Eηϯ y,//d,>>ϯ͕W/Eηϱ y,//d,>>ϭ͕W/Eηϵ :2& ZĞĨ͘ ϭϬ͘ϭ >ŝŶĞ ϴ͘ϭ ϭϬϭϰϭϲϭϳϭϴϮϬ ϭϭϭϭϭϮϭϯϭϱϭϵϮϭϮϮϮϯ ϰϲϳϴ ϭϮϯϱϵ 'E 3DFNHW3JŵĞƌĐŝĂůĂŶZĞƚƌŽĨŝƚ͕ϬͲϭϬs͕ϰϬϬϬ<͕ϭϮϬͬϮϳϳs͕ĂŵƉ>ŽĐĂƚŝŽŶZ dZK͕Ϯϯt> ͕ϭ͕ϳϱϬ>ƵŵĞŶϴΗŽŵŵĞƌĐŝĂůĂŶZĞƚƌŽĨŝƚ͕ϬͲϭϬs͕ϰϬϬϬ<͕ϭϮϬͬϮϳϳs͕ĂŵƉ>ŽĐĂƚŝŽŶ Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯ yϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ ϱϭϮKƵƚƉƵƚ͕ϰϬϬϬ<͕tŚŝƚĞ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ͕&ƵůůKƵƚƉƵƚ ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ >ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ zĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϮϴϮͲZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϮϴϮͲZĞĐĞ ƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚ ĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲ /ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽ ƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕tƌĂƉ ƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕tƌĂƉƌŽƵŶĚ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ ŽǀĞ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ŽǀĞ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ŽǀĞ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ŽǀĞ^ƚ ƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ ,ŝŐŚĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ :Ăƌ&ŝdžƚƵƌĞ͕^ƵƌĨĂĐĞDŽƵŶƚĞĚ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ WŽƌĐĞůĂŝŶ^ŽĐŬĞƚ&ŝdžƚƵƌĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϱǁ͕ϭϮϬǀWŽƌĐĞůĂŝŶ^ŽĐŬĞƚ&ŝdžƚƵƌĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϱǁ͕ϭϮϬǀWŽƌĐĞůĂŝŶ^ŽĐŬĞƚ&ŝdžƚƵƌĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϱǁ͕ϭϮϬǀWŽƌĐĞůĂŝŶ^ŽĐŬĞƚ&ŝdžƚƵƌĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϱǁ͕ϭϮϬǀ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ /LJKWLQJOLQHE\OLQH 0F.LQVWU\&R//& ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ WŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ ± ± YƚLJ ϮϬϳϲϭϬ ϱϭϭϭ ϰϰϰϰϰϰϴϰϰϰ ϮϮϭϭϭϮϮϮϮϯϮ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮ *(63:RUN2UGHU&RQWUDFW ,/E^d' ͲZ ^^/E'ZKKD ,/E^d' ͲZ ^^/E'ZKKD ,/E^d' ͲZ ^^/E'ZKKD ,/E^d' ͲZ ^^/E'ZKKD ,/E^d' ͲZ ^^/E'ZKKD ,/E^d' ͲZ ^^/E'ZKKD y,//d,>> EdZE ͕W/EηϮϬ y,//d,>> EdZE ͕W/EηϮϰ ,/E^d' ͲKEdZK>ZKKD y,//d,>> EdZE ͕W/EηϮϭ y,//d,>> EdZE ͕W/EηϮϮ y,//d,>> EdZE ͕W/EηϮϯ y,//d,>> EdZE ͕W/EηϮϱ >ŽĐĂƚŝŽŶ ,/E^d' Ͳ'Z EZKKD ,/E^d' Ͳ'Z EZKKD ,/E^d' Ͳd DZKKD t ^ds ^d/h> ͕W/Eηϭϳt ^ds ^d/h> ͕W/Eηϭϴ ,/E^d' Ͳ^,Kt Z ,/E^d' Ͳ>K< Z ,/E^d' Ͳ>K< Z EKZd,>Kz͕W/EηϭϬEKZd,>Kz͕W/Eηϭϲ EKZd,>Kz͕W/Eηϭϱ ,/E^d' ͲZZ ,>>tz͕W/Eηϭϵ :2& ZĞĨ͘ >ŝŶĞ ϮϰϮϲϮϳϮϴϯϬϯϰϯϲϯϳϯϴϰϬϰϰϰϲϰϳϰϴ ϮϱϮϵϯϭϯϮϯϯϯϱϯϵϰϭϰϮϰϯϰϱϰϵ 'E 3DFNHW3JZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂ ƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕ > dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ &/ydhZ ͕ϲϬϬt> ,ŝŐŚĂLJ͕ϲϬ͕ϬϬϬ>ƵŵĞŶƐ͕ϭϮϬͬϮϳϳs͕DyͲϱϭϮKƵƚƉƵƚ͕dƵŶĞĂďůĞŽůŽƌ ŝĨĨƵƐĞ>ĞŶƐ͕&ĂĐƚŽƌLJ/ŶƐƚĂůůĞĚ^ƚĞƉŝŵKĐĐƵƉĂŶĐLJ^ĞŶƐŽƌ;ϮϱйͿ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ dĞŵƉĞƌĂƚƵƌĞ͕ůĂĐŬ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ Z DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌZ DKs ͕&ƌŽŵ^ĞƌǀŝĐĞĂŶĚ ůĞĐƚƌŝĐƉŽǁĞƌ >ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ >ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ zĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ ZĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϰϮϰͲ ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϰϮϰͲZĞĐĞ ƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲ /ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽ ƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ů ĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ZĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕DĞƚĂů,ĂůŝĚĞ͕ϭϳϱǁ͕ϭϮϬͬϮϳϳǀZĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕DĞƚĂů,ĂůŝĚĞ͕ϭϳϱǁ͕ϭϮϬͬϮϳϳǀ ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϮϱϬǁ͕ϭϮϬǀZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϮϱϬǁ͕ϭϮϬǀ &ůŽŽĚ&ŝdžƚƵƌĞ͕DĞƚĂů,ĂůŝĚĞ͕ϭϬϬϬǁ͕ϭϮϬͬϮϳϳǀ͕ZĞŵŽƚĞĂůůĂƐƚ ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ ŽǀĞ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ ϭϮϬͬϮϳϳǀ͕/ŶĐŽƌƌĞĐƚƉƉůŝĐĂƚŝŽŶͲ^ŚŽƵůĚďĞ^ƚĂŝƌǁĞůůdLJƉĞ EĞǁ/ŶƐƚĂůůĂƚŝŽŶ͕&ĞĞĚ&ƌŽŵ džŝƐƚŝŶŐ>ŝŐŚƚŝŶŐŝƌĐƵŝƚƐ :Ăƌ&ŝdžƚƵƌĞ͕tĂůůDŽƵŶƚĞĚ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ ^ĞĐƵƌŝƚLJ&ůŽŽĚ>ŝŐŚƚ͕YƵĂƌƚnj,ĂůŽŐĞŶ͕ϭϱϬϬǁ͕ϭϮϬǀ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ &ůŽŽĚ&ŝdžƚƵƌĞ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϳϱϬǁ͕ϭϮϬǀ /LJKWLQJOLQHE\OLQH >ŽǁĂLJ͕DĞƚĂů,ĂůŝĚĞ͕ϰϬϬǁϭϮϬͬϮϳϳǀ 0F.LQVWU\&R//& ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ WŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ ± ± YƚLJ ϯϬϯϲϭϲϯϳϴϲϴϬϱϬϭϰϭϬ ϭϭϭϱϳϵϯϭϭϮϮϵ ϲϰϴϳ ϯϱϱϱϮϵϱ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ y,//d,>> EdZE ,>>tz͕W/EηϮϲ;>KE't/EKt^Ϳ ϭϰϬϰϭϰϬϰϭϰϬϰϭϰϬϰϭϰϬϰϭϰϬϰϭϳϳϳϭϳϳϳϭϰϬϰϭϰϬϰϭϰϬϰ ϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮϮϳϳϮ ϱϮϬϮϲϬϮϲϬ *(63:RUN2UGHU&RQWUDFW D/Ed EE ^dKZ' EdZE ͕W/Eηϯϲ Z E͕E t>/',d/E'&/ydhZ ͬKEdZK>^ KEKhZ^ ϯ,>>tz͕W/Eηϰϲ KEKhZ^ ϯ,>>tz͕W/Eηϰϱ D/Ed EE ^dKZ' ͕W/Eηϯϳ tZ ,Kh^ ,>>tz͕W/Eηϯϭ >ŽĐĂƚŝŽŶ Z EͲD ,E/>ZKKDϭ D/Ed EE K<͕W/Eηϯϴ ,>>tzdKZ E͕W/Eηϯϱ Z EͲ > dZ/>ZKKD Z E EdZE ͕W/Eηϱϱ Ed Z,>>tz͕W/EηϮϳ Ed Z,>>tz͕W/EηϮϴ Z E^ d/E'͕W/Eηϱϰ Z E^ d/E'͕W/EηϱϮ d> ^dKZ' ͕W/Eηϯϯ ^d' ^ d/E'͕W/EηϰϮ^d' ^ d/E'͕W/Eηϰϯ 'd ^dKZ' ͕W/EηϯϮ ^d/Zt >>͕W/Eηϯϰ dt><͕W/Eηϰϰ ,>>tz͕W/Eηϯϵ Z E͕W/EηϰϬ Z E͕W/EηϰϭZ E͕W/Eηϰϭ :2& ZĞĨ͘ ϲϰ͘ϭ >ŝŶĞ ϱϬϱϰϱϲϱϳϱϴϲϬϲϰϲϲϲϳϲϴϳϬϳϰ ϱϭϱϮϱϯϱϱϱϵϲϭϲϮϲϯϲϱϲϵϳϭϳϮϳϯ 'E 3DFNHW3JƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕> >ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭ ϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ &/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ &ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ >ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϮϴϮͲZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϮϴϮͲ ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕DĞƚĂů,ĂůŝĚĞ͕ϭϳϱǁ͕ϭϮϬͬϮϳϳǀ ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůů ĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ WĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞ ƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽ ǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ͕ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ͕ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ͕ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶ ĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ͕ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ͕ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ͕ZĞĐĞƐƐĞĚĂŶ͕ϲΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕/ŶĐĂŶĚĞƐĐĞ Ŷƚ͕ϲϬǁ͕ϭϮϬǀ͕ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ /LJKWLQJOLQHE\OLQH ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮ ϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐ 0F.LQVWU\&R//& ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕>ŽƵǀĞƌ>ĞŶƐ ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ WŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀ ŝŵŵĂďůĞŝŵŵĂďůĞŝŵŵĂďůĞŝŵŵĂďůĞŝŵŵĂďůĞŝŵŵĂďůĞŝŵŵĂďůĞ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ ± ± YƚLJ ϵϴϭϰϭϲϭϰϭϲϭϲϭϬ ϭϮϭϮϭϮϭϮϭϮϭϮϭϮϭϮϭϮ ϲ ϵϭϭϵϵϮϭϮϭ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϭϳϳϳϭϳϳϳϭϳϳϳϭϱϭϴϭϱϭϴϭϲϲϬϭϲϲϬϭϲϲϬϭϲϲϬϭϱϯϬϭϱϯϬϭϱϯϬϭϱϯϬϴϳϲϬϭϳϳϳ ϭϮϱϭϭϮϱϭϭϭϯϯϭϭϯϯ ϮϲϬϮϲϬϮϲϬϮϲϬϮϲϬϮϲϬϮϲϬ *(63:RUN2UGHU&RQWUDFW Z EͲKEKhZ^ Ͳz^d/Z^ >ŽĐĂƚŝŽŶ Z EͲD ,E/>ZKKDϮ Z EͲ > sdKZZKKD Z EͲ,>>>K^ dZ EͲ,>>>K^ d Z EͲKEKhZ^ Z EͲ > sdKZ Z EͲ,>>tzZ EͲ,>>tz Z EͲ^dKZ' Z EͲ^h/d ϭZ EͲ^h/d ϭZ EͲ^h/d ϮZ EͲ^h/d Ϯ Z EͲ^h/d ϭZ EͲ^h/d ϭZ EͲ^h/d ϮZ EͲ^h/d Ϯ Z EͲ^h/d Z EͲ^h/d Z EͲ^h/d Z EͲ^h/d Z EͲ>K^ d Z EͲ^h/d Z EͲ^h/d Z EͲ^d/Z^ :2& ZĞĨ͘ ϭϬϬ >ŝŶĞ ϳϲϳϳϳϴϴϬϴϰϴϲϴϳϴϴϵϬϵϰϵϲϵϳϵϴ ϳϱϳϵϴϭϴϮϴϯϴϱϴϵϵϭϵϮϵϯϵϱϵϵ 'E 3DFNHW3JϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵď Ğ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ Z dZK͕> dh ͕ϮyϮϮt͕Ϯ͕ϬϱϬ>ƵŵĞŶ͕ϰĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϯϬϬ>ƵŵĞŶ͕ϮĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕ϮyϮϮt͕Ϯ͕ϬϱϬ>ƵŵĞŶ͕ϰĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϯϬϬ>ƵŵĞŶ͕ϮĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕Ϯ yϮϮt͕Ϯ͕ϬϱϬ>ƵŵĞŶ͕ϰĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϯϬϬ>ƵŵĞŶ͕ϮĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕ϮyϮϮt͕Ϯ͕ ϬϱϬ>ƵŵĞŶ͕ϰĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕>Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϯϬϬ>ƵŵĞŶ͕ϮĨƚdϱĞdĞĐŚ> dƵďĞ͕ϬͲϭϬǀ džƚĞƌŶĂůƌŝǀĞƌ͕ϰϬϬϬ<͕> ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ >ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌ ƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ <ŝƚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ<ŝƚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ<ŝƚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ<ŝƚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ >ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ ZĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲZ ĞĐĞƐƐĞĚĂŶ͕ϭϬΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϭdžW>ϰϮϰͲ ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕ŽŵƉĂĐƚ&ůƵŽƌĞƐĐĞŶƚ͕ϮdžW>ϰϮϰͲ /ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϰdϭϮ͕DĂŐŶĞƚŝĐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕dƵďĞ ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&Ϯϴdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϮΖ͕Ϯdž&ϭϰdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&Ϯϴdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϮΖ͕Ϯdž&ϭϰdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&Ϯϴdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϮΖ͕Ϯdž&ϭϰdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^Ƶ ƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&Ϯϴdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ^ƵƌĨĂĐĞDŽƵŶƚ&ŝdžƚƵƌĞ͕ϭΖdžϮΖ͕Ϯdž&ϭϰdϱ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůů ĂƐƚ͕ WƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϰdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϰdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϰdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞ ƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϰdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽ ǁĞƌ tƌĂƉƌŽƵŶĚ͕ϮΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ ŽǀĞ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌĂůůĂƐƚ͕ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞ ƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ĞĐŽƌĂƚŝǀĞ>ŽƵǀĞƌ>ĞŶƐ /LJKWLQJOLQHE\OLQH 0F.LQVWU\&R//& ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ WŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ 'ƵĂƌĚƐ ± ± YƚLJ ϭϬ ϵϭϮϱ ϰϰϲϲϲϰϴ ϭϭϯϮϭϮϭϮϱϭϮϱϮϯϮϭ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳ ϮϲϬϮϲϬϮϲϬϱϮϬ *(63:RUN2UGHU&RQWUDFW >ŽĐĂƚŝŽŶ Z EͲZ &Z ^,D Ed^Z Z EtKD E^ZZ͕W/EηϲϳZ EtKD E^ZZ͕W/Eηϲϴ Z EtKD E^ZZ͕W/EηϲϭZ EtKD E^ZZ͕W/EηϲϮZ EtKD E^ZZ͕W/EηϲϯZ EtKD E^ZZ͕W/Eηϲϵ DW>Kz </d, E͕W/Eηϳϰ Z EͲ > dZ/>ZKKD </d, E^dKZ' ͕W/Eηϳϳ Z E,>>tz͕W/EηϱϲZ E,>>tz͕W/Eηϱϳ Z ED E^ZZ͕W/EηϱϴZ ED E^ZZ͕W/EηϲϬZ ED E^ZZ͕W/EηϳϬ Z ED E^ZZ͕W/EηϱϵZ ED E^ZZ͕W/EηϳϭZ ED E^ZZ͕W/EηϳϮ ,/Z^dKZ' ͕W/Eηϲϰ WZ/sd K&&/ ͕W/Eηϳϱ Z <ZKKD͕W/Eηϳϯ ,>>tz͕W/Eηϲϲ Z EͲ^dKZ' Z EͲ^dKZ' </d, E͕W/Eηϳϲ Z EͲ>K^ d :2& ZĞĨ͘ ϭϬϰϭϬϲϭϬϳϭϬϴϭϭϬϭϭϰϭϭϲϭϭϳϭϭϴϭϮϬϭϮϰϭϮϲ >ŝŶĞϭϬϭϭϬϮϭϬϯϭϬϱϭϬϵϭϭϭϭϭϮϭϭϯϭϭϱϭϭϵϭϮϭϭϮϮϭϮϯϭϮϱ 'E 3DFNHW3JƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ >ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰ ĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ EK ^^͕ZŽŽŵǁĂƐŶŽƚĂĐĐĞƐƐŝďůĞĂŶĚƚŚĞƌĞĨŽƌĞŶŽƚŝŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚƐĐŽƉĞEK ^^͕ZŽŽŵǁĂƐŶŽƚĂĐĐĞƐƐŝďůĞĂŶĚƚŚĞƌĞĨŽƌĞŶŽƚŝŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚƐĐŽƉĞ ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ &ŝŶŝƐŚ͕ϭϬϬ͕ϬϬϬнŚŽƵƌůŝĨĞĞdžƉĞĐƚĂŶĐLJ͕ϭϬzĞĂƌtĂƌƌĂŶƚLJ &ĂĐƚŽƌLJ/ŶƐƚĂůůĞĚWŚŽƚŽĞůů͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ĂĐƚŽƌLJ/ŶƐƚĂůůĞĚWŚŽƚŽĞůů͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ ϱϬ͕ϬϬϬ,ŽƵƌ^ƵƉĞƌ>ŽŶŐ>ŝĨĞ͕ϭϬzĞĂƌtĂƌƌĂŶƚLJϱϬ͕ϬϬϬ,ŽƵƌ^ƵƉĞƌ>ŽŶŐ>ŝĨĞ͕ϭϬzĞĂƌtĂƌƌĂŶƚLJϱϬ͕ϬϬϬ,ŽƵƌ^ƵƉĞƌ>ŽŶŐ>ŝĨĞ͕ϭϬzĞĂƌtĂƌƌĂŶƚLJ ^</W͕EŽƚ/ŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚ^</W͕EŽƚ/ŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚ^</W͕EŽƚ/ŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚ^</W͕EŽƚ/ŶĐůƵĚĞĚŝŶƉƌŽũĞĐƚ >ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ>ŝƐƚĞĚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ zĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJzĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ /ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ/ŶĚƵƐƚƌŝĂů,ŽŽĚĞĚ&ŝdžƚƵƌĞ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ EK ^^͕ZŽŽŵǁĂƐŶŽƚĂĐĐĞƐƐŝďůĞĂŶĚƚŚĞƌĞĨŽƌĞŶŽƚŝŶĐůƵĚĞĚŝŶEK ^^͕ZŽŽŵǁĂƐŶŽƚĂĐĐĞƐƐŝďůĞĂŶĚƚŚĞƌĞĨŽƌĞŶŽƚŝŶĐůƵĚĞĚŝŶ KƵƚĚŽŽƌ͕^ŝŐŶ&ŝdžƚƵƌĞ͕&ůƵŽƌĞƐĐĞŶƚ͕ϲdž&ϲϰdϭϮ,K͕DĂŐŶĞƚŝĐĂůůĂƐƚ͕KƵƚĚŽŽƌ͕^ŝŐŶ&ŝdžƚƵƌĞ͕&ůƵŽƌĞƐĐĞŶƚ͕ϰdž&ϳϮdϭϮ,K͕DĂŐŶĞƚŝĐĂůůĂƐƚ͕KƵƚĚŽŽƌ͕^ŝŐŶ&ŝdžƚƵƌĞ͕&ůƵŽƌĞƐĐĞŶƚ͕ϲdž&ϲϰdϭϮ,K͕DĂŐŶĞƚŝĐĂůůĂƐƚ ͕KƵƚĚŽŽƌ͕^ŝŐŶ&ŝdžƚƵƌĞ͕&ůƵŽƌĞƐĐĞŶƚ͕ϰdž&ϳϮdϭϮ,K͕DĂŐŶĞƚŝĐĂůůĂƐƚ͕ KƵƚĚŽŽƌ͕ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕DĞƚĂů,ĂůŝĚĞ͕ϭϳϱǁ͕KƵƚĚŽŽƌ͕ZĞĐĞƐƐĞĚĂŶ͕ϴΗEŽŵŝŶĂůKƉĞŶŝŶŐ͕DĞƚĂů,ĂůŝĚĞ͕ϭϳϱǁ͕ KƵƚĚŽŽƌ͕'ůŽďĞ&ŝdžƚƵƌĞ͕WŽůĞDŽƵŶƚĞĚ͕DĞƚĂů,ĂůŝĚĞ͕WƵůƐĞ^ƚĂƌƚKƵƚĚŽŽƌ͕'ůŽďĞ&ŝdžƚƵƌĞ͕tĂůůDŽƵŶƚĞĚ͕DĞƚĂů,ĂůŝĚĞ͕WƵůƐĞ^ƚĂƌƚKƵƚĚŽŽƌ͕'ůŽďĞ&ŝdžƚƵƌĞ͕WŽůĞDŽƵŶƚĞĚ͕DĞƚĂů,ĂůŝĚĞ͕WƵůƐĞ^ƚĂƌƚ KƵƚĚŽŽƌ͕^ƵƌĨĂĐĞĂŶŽƉLJ͕ϭϮΗdžϭϮΗ͕DĞƚĂů,ĂůŝĚĞ͕ϳϬǁ͕ϭϮϬͬϮϳϳǀ WƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϭΖdžϰΖ͕Ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞ ƌWƌŝƐŵĂƚŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ KƵƚĚŽŽƌ͕ŽďƌĂ,ĞĂĚ͕DĞƚĂů,ĂůŝĚĞ͕ϮϱϬǁ͕ϭϮϬͬϮϳϳǀ͕&ŝdžƚƵƌĞKƵƚĚŽŽƌ͕ŽďƌĂ,ĞĂĚ͕DĞƚĂů,ĂůŝĚĞ͕ϮϱϬǁ͕ϭϮϬͬϮϳϳǀ͕&ŝdžƚƵƌĞ :Ăƌ&ŝdžƚƵƌĞ͕tĂůůDŽƵŶƚĞĚ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ KƵƚĚŽŽƌ͕tĂůůWĂĐŬ͕DĞƚĂů,ĂůŝĚĞ͕ϮϱϬǁ͕ϭϮϬͬϮϳϳǀKƵƚĚŽŽƌ͕tĂůůWĂĐŬ͕DĞƚĂů,ĂůŝĚĞ͕ϮϱϬǁ͕ϭϮϬͬϮϳϳǀKƵƚĚŽŽƌ͕tĂůůWĂĐŬ͕DĞƚĂů,ĂůŝĚĞ͕ϮϱϬǁ͕ϭϮϬͬϮϳϳǀKƵƚĚŽŽƌ͕tĂůůWĂĐŬ͕DĞƚĂů,ĂůŝĚĞ͕ϮϱϬǁ͕ϭϮϬͬϮϳϳǀ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ KƵƚĚŽŽƌ͕tĂůůWĂĐŬ͕/ŶĐĂŶĚĞƐĐĞŶƚ͕ϲϬǁ͕ϭϮϬǀ /LJKWLQJOLQHE\OLQH 0F.LQVWU\&R//& DĞƚĂů,ĂůŝĚĞ͕ϳϬǁ͕ϭϮϬͬϮϳϳǀDĞƚĂů,ĂůŝĚĞ͕ϳϬǁ͕ϭϮϬͬϮϳϳǀDĞƚĂů,ĂůŝĚĞ͕ϳϬǁ͕ϭϮϬͬϮϳϳǀ DŽƵŶƚĞĚWŚŽƚŽĞůůDŽƵŶƚĞĚWŚŽƚŽĞůů ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ ƉƌŽũĞĐƚƐĐŽƉĞƉƌŽũĞĐƚƐĐŽƉĞ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ ± ± YƚLJ ϰϬϬϳϲϰϲϰϳϳϳ ϭϱϭϭϭϮϱϮϭϮϯϵϵϭϭ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϭϳϳϳϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬ *(63:RUN2UGHU&RQWUDFW </d, E;Ϯ>K< ZKKD^Ϳ͕W/EηϴϮ yd Z/KZͲZ /s/E'Z t>>ϭ yd Z/KZͲZ /s/E'Z t>>Ϯ yd Z/KZͲKs ^ Zs/ KKZ^ >ŽĐĂƚŝŽŶ </d, EKW EK&&/ ͕W/Eηϴϭ yd Z/KZͲd, dZ EKWz yd Z/KZͲ>KE'^/ t>< yd Z/KZͲD/E EdZE yd Z/KZͲD/E EdZE yd Z/KZͲD/E EdZE yd Z/KZͲ^/ EdZE yd Z/KZͲ^/ EdZE :E/dKZΖ^>K^ d͕W/EηϴϬ :E/dKZ^>K^ d͕W/Eηϴϱ </d, E&Z Z͕W/Eηϴϯ >/E E^dKZ' ͕W/Eηϳϴ yd Z/KZͲ^ Zs/ >Kd KW EK&&/ ͕W/Eηϴϲ yd Z/KZͲKZE Z yd Z/KZͲ/EWZ< &/Z^d/͕W/Eηϴϰ yd Z/KZͲ^/'Eϭ yd Z/KZͲ^/'Eϭ yd Z/KZͲ^/'EϮ yd Z/KZͲ^/'EϮ WEdZz͕W/Eηϳϵ :2& ZĞĨ͘ ϭϮϳϭϮϴϭϯϬϭϯϰϭϯϲϭϯϳϭϯϴϭϰϬϭϰϰϭϰϲϭϰϳϭϰϴϭϱϬ >ŝŶĞϭϮϵϭϯϭϭϯϮϭϯϯϭϯϱϭϯϵϭϰϭϭϰϮϭϰϯϭϰϱϭϰϵϭϱϭϭϱϮ 'E 3DFNHW3J dŽƚĂůŬt ^ĂǀĞĚ Ϭ͘ϬϬϬ͘ϲϬϬ͘ϭϰϬ͘ϭϰϬ͘ϬϰϬ͘ϬϰϬ͘ϯϰϬ͘ϭϰϬ͘ϬϴϬ͘ϬϴϬ͘ϬϴϬ͘ϬϴϬ͘ϬϲϬ͘ϬϴϬ͘Ϭϲ Ϭ͘ϮϮϲ͘ϱϱϬ͘ϮϮϬ͘ϮϱϬ͘ϬϵϬ͘ϬϯϬ͘ϭϱϬ͘ϬϯϬ͘ϰϮϬ͘ϮϯϬ͘ϭϵ dŽƚĂůŬtŚ^ĂǀĞĚ Ϯϴϲϵϳ͘ϳϲ ϮϲϮϴ͘ϬϬ ϵϰϲ͘ϬϴϱϮϰ͘ϭϲϱϳϯ͘ϯϬϳϳϬ͘ϴϴϮϰϱ͘ϮϴϴϬϬ͘Ϯϴϯϱϱ͘ϲϴϯϮϳ͘ϲϬϭϳϳ͘ϴϰϭϳϳ͘ϴϰϰϰϰ͘ϲϬϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϯϭ͘Ϭϰϭϳϳ͘ϴϰϭϯϭ͘Ϭϰ ϵϳϴ͘ϭϮϱϯϯ͘ϱϮ ϯϲ͘ϰϬϯϲ͘ϰϬϴϭ͘ϵϬ ϴϴ͘ϵϮϲϱ͘ϱϮ Ϭ͘ϬϬ ĨƚĞƌtĂƚƚƐ dŽƚĂů>ŝŶĞ ϭϱϭϮ ϰϰϬϭϯϲϮϰϬϭϱϬϭϱϬϭϴϬϭϱϬϮϳϬ ϭϲϭϭϭϱϰϬϱϰϵϱϮϮϱ ϲϬϵϬϵϬϵϬϵϬϲϬϵϬϲϬ ϭϱϰϱϵϮ Ϭ tĂƚƚƐdŽƚĂů ĞĨŽƌĞ ϭϬϰϬϴϬϲϰ ϰϲϰϰϬϲϭϰϴϮϵϬϮϵϬϭϱϬϳϰϳϭϮϬϮϵϬϭϲϲϭϲϲϰϵϴϭϲϲϭϲϲϭϭϲϭϲϲϭϭϲ >ŝŶĞϯϱϮϯϯϮϵϭϯϰϭϱ ϰϯϴϯ Ϭ &/ydhZ ͕ϯϰt> ŽůůĂƌĚ͕Ϯ͕ϯϯϯ>ƵŵĞŶƐ͕ϯϲΗ,ĞŝŐŚƚ͕ZϱKƉƚŝĐƐ͕ϭϮϬͬϮϳϳs͕ϰϬϬϬ<͕ƌŽŶnjĞWŽǁĚĞƌŽĂƚ Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϴϮϱ>ƵŵĞŶ͕ϮĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϮΖyϮΖtŚŝƚĞZĞĨůĞĐƚŽƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϴϮϱ>ƵŵĞŶ͕ϮĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϮΖyϮΖtŚŝƚĞZĞĨůĞĐƚ Žƌ &/ydhZ ͕ϴϴt> ZŽƵŶĚƌĞĂ>ŝŐŚƚ͕ϳ͕ϵϭϬ>ƵŵĞŶƐ͕ZϯKƉƚŝĐƐ͕ϭϮϬͬϮϳϳs͕ϱϬϬϬ<͕ƌŽŶnjĞWŽǁĚĞƌŽĂƚ Z dZK͕ϱϰt> ͕ϯ͕ϴϬϬ>ƵŵĞŶϴΗŽŵŵĞƌĐŝĂůĂŶZĞƚƌŽĨŝƚ͕ϬͲϭϬs͕ϰϬϬϬ<͕ϭϮϬͬϮϳϳs͕ĂŵƉ>ŽĐĂƚŝŽŶZ dZK͕Ϯϯt> ͕ϭ͕ϳϱϬ>ƵŵĞŶϲΗŽŵŵĞƌĐŝĂůĂŶZĞƚƌŽĨŝƚ͕ϬͲϭϬs͕ϰϬϬϬ<͕ϭϮϬͬϮϳϳs͕ĂŵƉ>ŽĐĂƚŝŽŶZ dZK͕Ϯϯt > ͕ϭ͕ϳϱϬ>ƵŵĞŶϲΗŽŵŵĞƌĐŝĂůĂŶZĞƚƌŽĨŝƚ͕ϬͲϭϬs͕ϰϬϬϬ<͕ϭϮϬͬϮϳϳs͕ĂŵƉ>ŽĐĂƚŝŽŶZ dZK͕Ϯϯt> ͕ϭ͕ϳϱϬ>ƵŵĞŶϲΗŽŵŵĞƌĐŝĂůĂŶZĞƚƌŽĨŝƚ͕ϬͲϭϬs͕ϰϬϬϬ<͕ϭϮϬͬϮϳϳs͕ĂŵƉ>ŽĐĂƚŝŽŶ Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϭyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯ yϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞ ĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵ ďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ< ͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐ ƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ Ϯdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž &ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯ dž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕Ϯdž&ϯϰdϭϮ͕DĂŐŶĞƚŝĐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ^ƚĂŶĚĂƌĚ^ƚƌŝƉ͕ϭΖdžϰΖ͕ϭdž&ϯϰdϭϮ͕DĂŐŶĞƚŝĐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ KƵƚĚŽŽƌ͕ZŽƵŶĚƌĞĂ>ŝŐŚƚ͕DĞƚĂů,ĂůŝĚĞ͕ϭϳϱǁ͕ϭϮϬͬϮϳϳǀ KƵƚĚŽŽƌ͕ŽůůĂƌĚ&ŝdžƚƵƌĞ͕DĞƚĂů,ĂůŝĚĞ͕ϳϬǁ͕ϭϮϬͬϮϳϳǀ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ /LJKWLQJOLQHE\OLQH 0F.LQVWU\&R//& KƵƚĚŽŽƌ͕tĂůůWĂĐŬ͕> ͕ϭϮϬͬϮϳϳǀ ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬ ͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ WŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀWŝŶ͕ϭϮϬͬϮϳϳǀ ϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀϭϮϬͬϮϳϳǀ ± ± YƚLJ ϭϬϮϴ ϭϭ ϰϴϳϰϰϲ ϱϮϭϱϱϭϱϵϱϮϮϱϮϮϮϮϮ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϰϯϴϬϰϯϴϬϰϯϴϬϰϯϴϬϮϯϰϬϮϯϰϬϴϳϲϬϴϳϲϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬ ϮϲϬϮϲϬ ϮE&>KKZK&&/ Z ͲKE^dZhd/KEK&&/ ZKKD *(63:RUN2UGHU&RQWUDFW ϮE&>KKZK&&/ Z Ͳ Yh/WD EdZKKD ϮE&>KKZK&&/ Z ͲD ,ZKKD yd Z/KZͲhE ZEKWzϮE&>KKZZ^K&&/ Z Ͳ Yh/WD EdZKKD ϮE&>KKZK&&/ Z Ͳ^d/Z^Z ϮE&>KKZK&&/ Z Ͳ > sdKZϮE&>KKZK&&/ Z Ͳ > sdKZ Z^K&&/ Z ͲD/>ZKKD Z^K&&/ Z ͲZ Wd/KE >ŽĐĂƚŝŽŶ Z^K&&/ Z Ͳ,>>tzZ^K&&/ Z Ͳ,>>tz yd Z/KZͲ>KE't>>tz yd Z/KZͲ>KE't>>tz Z^K&&/ Z Ͳ</d, EZ^K&&/ Z Ͳ</d, E Z^K&&/ Z Ͳ>K^ d Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z Ͳ EdZz yd Z/KZͲt>> :2& ZĞĨ͘ ϭϱϰϭϱϲϭϱϳϭϱϴϭϲϬϭϲϰϭϲϲϭϲϳϭϲϴϭϳϬϭϳϰϭϳϲϭϳϳϭϳϴ >ŝŶĞϭϱϯϭϱϱϭϱϵϭϲϭϭϲϮϭϲϯϭϲϱϭϲϵϭϳϭϭϳϮϭϳϯϭϳϱ 'E 3DFNHW3J dŽƚĂůŬt ^ĂǀĞĚ Ϭ͘ϬϴϬ͘ϬϴϬ͘ϬϴϬ͘ϬϴϬ͘ϬϴϬ͘ϬϲϬ͘ϬϴϬ͘ϬϴϬ͘ϬϴϬ͘Ϭϴ Ϭ͘ϭϭϬ͘ϮϭϬ͘ϮϭϬ͘Ϯϭ dŽƚĂůŬtŚ^ĂǀĞĚ ϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϯϭ͘Ϭϰϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϳϳ͘ϴϰϭϳϳ͘ϴϰϮϲϲ͘ϳϲϰϵϲ͘Ϭϴϰϵϲ͘Ϭϴϰϵϲ͘Ϭϴ ĨƚĞƌtĂƚƚƐ dŽƚĂů>ŝŶĞ ϭϮϬϭϮϬϭϮϬ ϭϯϱ ϵϬϵϬϵϬϵϬϵϬϲϬϵϬϵϬϵϬϵϬ tĂƚƚƐdŽƚĂů ĞĨŽƌĞ ϭϲϲϭϲϲϭϲϲϭϲϲϭϲϲϭϭϲϭϲϲϭϲϲϭϲϲϭϲϲ >ŝŶĞϮϰϵϯϯϮϯϯϮϯϯϮ Z dZK͕> dh ͕Ϯyϭϱt͕ϭ͕ϴϮϱ>ƵŵĞŶ͕ϮĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϮΖyϮΖtŚŝƚĞZĞĨůĞĐƚŽƌ Z dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯ yϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌZ dZK͕> dh ͕ϯyϭϱt͕ϭ͕ϵϵϴ>ƵŵĞŶ͕ϰĨƚĞdĞĐŚ> dƵďĞ͕ϰϬϬϬ<͕>>ŝƐƚĞĚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌ &/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ&/ydhZ ͕ϯϬt> 'ƌŝĚdƌŽĨĨĞƌ͕ϰ͕ϬϬϬ>ƵŵĞŶƐ͕ϮΖyϰΖ͕ϭϮϬͬϮϳϳs͕ϬͲϭϬs͕ϰϬϬϬ<͕tŚŝƚĞWŽǁĚĞƌŽĂƚ ZĞƚƌŽĨŝƚĞƐĐƌŝƉƚŝŽŶ <ŝƚ͕ϭϮϬͬϮϳϳs͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ &ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ&ŝŶŝƐŚ͕ϭϬͲzĞĂƌtĂƌƌĂŶƚLJ tĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJtĂƌƌĂŶƚLJ WĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϮΖ͕Ϯdž&ϯϮdϴͬhͬϲ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ WĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞ ƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽ ǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂů WŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂ ůWŽǁĞƌWĂƌĂďŽůŝĐ'ƌŝĚdƌŽĨĨĞƌ͕ϮΖdžϰΖ͕ϯdž&ϯϮdϴ͕ ůĞĐƚƌŽŶŝĐEŽƌŵĂůWŽǁĞƌ džŝƐƚŝŶŐ&ŝdžƚƵƌĞĞƐĐƌŝƉƚŝŽŶ /LJKWLQJOLQHE\OLQH ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ͕ŝͲ>ĞǀĞů^ǁŝƚĐŚŝŶŐ 0F.LQVWU\&R//& ĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀĂůůĂƐƚ͕ϭϮϬͬϮϳϳǀ ± ± YƚLJ ϰϰϰ ϮϮϮϮϮϮϮϮϮϮϯ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU$SSHQGL[ KƉͬ,ƌƐͬzƌ ϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬϮϯϰϬ *(63:RUN2UGHU&RQWUDFW Z^K&&/ Z ͲKE& Z E ZKKD Z^K&&/ Z Ͳ/Z dKZΖ^K&&/ Z^K&&/ Z Ͳ/Z dKZΖ^K&&/ Z^K&&/ Z ͲZ <ZKKD >ŽĐĂƚŝŽŶ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ Z^K&&/ Z ͲK&&/ :2& ZĞĨ͘ ϭϴϬϭϴϰϭϴϲϭϴϳϭϴϴϭϵϬ >ŝŶĞϭϳϵϭϴϭϭϴϮϭϴϯϭϴϱϭϴϵϭϵϭϭϵϮ 'E :RUN2UGHU&RQWUDFW $WWDFKPHQW &HUWLILFDWHRI6XEVWDQWLDO&RPSOHWLRQDQG$FFHSWDQFH 'DWHRI6XEVWDQWLDO&RPSOHWLRQ 'DWHWREHLQVHUWHGE\WKH6WDWH,QVWLWXWLRQ¶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¶VVFKHGXOHIRUWKHFRPSOHWLRQRIHDFKDQGHYHU\LWHPLGHQWLILHGRQWKH SXQFKOLVWVSHFLI\LQJWKH6XEFRQWUDFWRURUWUDGHUHVSRQVLEOHIRUWKHZRUNDQGWKHGDWHVWKHFRPSOHWLRQRUFRUUHFWLRQZLOO EHFRPPHQFHGDQGILQLVKHGZLWKLQDQ\SHULRGLQGLFDWHGLQWKH$JUHHPHQWIRUSXQFKOLVWFRPSOHWLRQSULRUWR)LQDO $FFHSWDQFH ([FHSWDVVWDWHGEHORZRQWKLV&HUWLILFDWHRI6XEVWDQWLDO&RPSOHWLRQDQG$FFHSWDQFHDOOPDQXIDFWXUHUV¶ZDUUDQWLHV RWKHUVSHFLDOZDUUDQWLHVDQGWKH&RQWUDFWRU¶VRQH\HDUREOLJDWLRQWRSHUIRUPUHPHGLDOZRUNVKDOOFRPPHQFHRQWKH'DWH RI6XEVWDQWLDO&RPSOHWLRQQRWHGDERYH 7KLV&HUWLILFDWHRI3DUWLDO6XEVWDQWLDO&RPSOHWLRQDQG$FFHSWDQFHVKDOOEHHIIHFWLYHDQGHVWDEOLVKWKH'DWHRI6XEVWDQWLDO &RPSOHWLRQRQO\ZKHQIXOO\H[HFXWHGE\WKH&RQWUDFWRUDQGWKH6WDWH,QVWLWXWLRQ¶V$XWKRUL]HG5HSUHVHQWDWLYH7KH6WDWH ,QVWLWXWLRQ¶V$XWKRUL]HG5HSUHVHQWDWLYHDFFHSWVWKH:RUNDVVXEVWDQWLDOO\FRPSOHWHDVRIWKH'DWHRI6XEVWDQWLDO &RPSOHWLRQKHUHLQQRWHG7KH&RQWUDFWRUDJUHHVWRFRPSOHWHRUFRUUHFWWKH:RUNLGHQWLILHGRQWKHDWWDFKHGSXQFKOLVW DQGWRGRVRLQDFFRUGDQFHZLWKDWWDFKHGSXQFKOLVWFRPSOHWLRQVFKHGXOH $XWKRUL]HG5HSUHVHQWDWLYH'DWH&RQWUDFWRU'DWH 6WDWH,QVWLWXWLRQ 3ULQWHG1DPH 3ULQWHG1DPH 3ULQWHG7LWOH 3ULQWHG7LWOH :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW$WWDFKPHQW 3DFNHW3J 'E 7KHUHVSRQVLELOLWLHVRIWKH6WDWH,QVWLWXWLRQ¶V$XWKRUL]HG5HSUHVHQWDWLYHDQGWKH&RQWUDFWRUIRUVHFXULW\PDLQWHQDQFH KHDWXWLOLWLHVDQGLQVXUDQFHVKDOOEHDVVSHFLILHGLQWKH&RQWUDFW'RFXPHQWVRUDVRWKHUZLVHKHUHDIWHUQRWHG ([FHSWLRQVLIDQ\WRWKHFRPPHQFHPHQWRIZDUUDQWLHVVKDOOEH 7KHDWWDFKHGILQDOSXQFKOLVWFRQVLVWVRISDJHVDQGWKHDWWDFKHG&RQWUDFWRU¶VVFKHGXOHVKRZLQJWKHGDWHVRI FRPPHQFHPHQWDQGFRPSOHWLRQRIHDFKSXQFKOLVWLWHPFRQVLVWVRISDJHV :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW$WWDFKPHQW 3DFNHW3J 'E :RUN2UGHU&RQWUDFW $WWDFKPHQW &HUWLILFDWHRI)LQDO&RPSOHWLRQDQG$FFHSWDQFH 'DWHRI)LQDO6XEVWDQWLDO&RPSOHWLRQ 'DWHWREHLQVHUWHGE\WKH6WDWH,QVWLWXWLRQ¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW$WWDFKPHQW 3DFNHW3J 'E [[954,309,1594,361][11][B,I,][Times New Roman]] WKLVSDJHLQWHQWLRQDOO\OHIWEODQN [[1596,309,1608,361][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW$WWDFKPHQW 3DFNHW3J 'E :RUN2UGHU&RQWUDFW ([KLELW$ 6HFWLRQ, &RQWUDFWRU¶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¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E D HQHUJ\XQLWVVXFKDVNLORZDWWKRXUVRIXVDJHNLORZDWWVRIGHPDQG E SK\VLFDOXQLWVRIIXHOVXFKDV³ KXQGUHGFXELFIHHW´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¶VDVVHVVPHQW RILWVSRWHQWLDOWRGHYHORSDQHQHUJ\VDYLQJVFRQWUDFWSURSRVDOWKDWFRQIRUPVWRWKHUHTXLUHPHQWVRIWKLV:RUN 2UGHU&RQWUDFW7KH6WDWH,QVWLWXWLRQPD\DFFHSWLQZKROHRULQSDUWRUPD\UHMHFWWKH&RQWUDFWRU¶VDQDO\VLVRU UHFRPPHQGDWLRQVLIWKH&RQWUDFWRU¶VDQDO\VLVRUUHFRPPHQGDWLRQVGRQRWPHHWWKHUHTXLUHPHQWVRIWKH6WDWH ,QVWLWXWLRQ¶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¶VIXWXUHHQHUJ\RURSHUDWLRQDOVDYLQJVDQGWKHWUXHFRVWRILPSOHPHQWLQJHDFKPHDVXUH ,QFOXGHDFFXUDWHPDUJLQDOFRVWVIRUHDFKXQLWRIVDYLQJVGRFXPHQWDWLRQRIPDWHULDODQGODERUFRVW VDYLQJVDGMXVWPHQWVWRWKHEDVHOLQHLIQHFHVVDU\WRUHIOHFWFXUUHQWFRQGLWLRQVDWWKHIDFLOLW\DQG FDOFXODWLRQVZKLFKDFFRXQWIRUDQ\LQWHUDFWLYHHIIHFWVRIWKHUHFRPPHQGHGPHDVXUHV :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E 8VHEHVWMXGJPHQWUHJDUGLQJWKHHPSOR\PHQWDQGGXUDWLRQRILQVWUXPHQWDWLRQWRDFKLHYHDQDFFXUDWH DQGIDLWKIXOFKDUDFWHUL]DWLRQRIHQHUJ\XVH 8VHPDUNXSVDQGIHHVQRJUHDWHUWKDQWKRVHVSHFLILHGLQ([KLELW%&RQWUDFWRU¶V)HHVLQDOOFRVW HVWLPDWHV 'HYHORSDSUHOLPLQDU\PHDVXUHPHQWDQGYHULILFDWLRQSODQIRUHDFKPHDVXUHLQDFFRUGDQFHZLWK $WWDFKPHQW0HDVXUHPHQWDQG9HULILFDWLRQ*XLGHOLQHVLQFRUSRUDWHGKHUHLQ &RPSO\ZLWK6FRSH5HTXLUHPHQWVDQG*XLGHOLQHVVHWIRUWKLQ6HFWLRQ,,RIWKLV([KLELW$ 8SRQWKH6WDWH,QVWLWXWLRQ¶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¶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¶VDFFHSWDQFHRIWKHSUHOLPLQDU\ILQGLQJVDQGUHFRPPHQGDWLRQVWKH &RQWUDFWRUVKDOOPHHWZLWK6WDWH,QVWLWXWLRQWRSUHVHQWWKHSUHOLPLQDU\,QYHVWPHQW*UDGH$XGLW5HSRUW 5HYLHZWKHUHFRPPHQGDWLRQVVDYLQJVFDOFXODWLRQVDQGLPSDFWRIWKHPHDVXUHVRQWKHRSHUDWLRQVRIWKH )DFLOLWLHV 6SHFLI\KRZWKHHVWLPDWHGSURMHFWFRVWVDQGVDYLQJVPHHWWKH6WDWH,QVWLWXWLRQ¶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¶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±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¶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¶VVROHGLVFUHWLRQ 6WDWH,QVWLWXWLRQPXVWGHOLQHDWHZKDW EXGJHWZLOOIXQGWKHVHIXWXUHVDYLQJV 2IIVHWRIIXWXUHFDSLWDOFRVW 6WDWH,QVWLWXWLRQ¶VVROHGLVFUHWLRQ 6WDWH,QVWLWXWLRQPXVWGHOLQHDWHZKDW EXGJHWZLOOIXQGWKHVHIXWXUHVDYLQJV 2XWVLGHLQFHQWLYHIXQGV XWLOLW\LQFHQWLYHVJUDQWVUHEDWHVHWF WUDFWRUDJHQWRURWKHUSHUVRQGRLQJRUFRQWUDFWLQJWRGRDOORUDSDUWRIWKHZRUN :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E RIWKHSURMHFWLVSHUPLWWHGRUUHTXLUHGWRZRUNPRUHKRXUVWKDQWKHSUHYDLOLQJKRXUVRIODERUXQOHVVSDLGIRU DOOKRXUVLQH[FHVVRIWKHSUHYDLOLQJKRXUVDWDUDWHRIDWOHDVWWLPHVWKHKRXUO\EDVLFUDWHRISD\ DQGD ODERUHURUPHFKDQLFPD\QRWEHSDLGDOHVVHUUDWHRIZDJHVWKDQWKHSUHYDLOLQJZDJHUDWHLQWKHVDPHRUPRVW VLPLODUWUDGHRURFFXSDWLRQLQWKHDUHD´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¶VDQG6XEFRQWUDFWRU¶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¶VZHEVLWHDW:::00'$'0,167$7(0186XQGHU³ 9HQGRU ,QIRUPDWLRQ´RUFDOOWKHGLYLVLRQ¶VKHOSOLQHDW :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±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¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E 7UDGH:RUN 8QOHVVDSSURYHGLQZULWLQJE\WKH6WDWH,QVWLWXWLRQWKH&RQWUDFWRUPD\QRWVHOISHUIRUPWUDGHZRUN 'HVLJQ*XLGHOLQHV 6ROHVRXUFHSURGXFWVSHFLILFDWLRQVRUUHTXLUHPHQWVDUHSURKLELWHGXQOHVVDSSURYHGLQZULWLQJE\WKH6WDWH ,QVWLWXWLRQ¶V$XWKRUL]HG5HSUHVHQWDWLYH7KH6WDWH,QVWLWXWLRQUHTXLUHVWKH&RQWUDFWRUWRVHOHFWDQGVSHFLI\DWD PLQLPXPTXDOLW\PDQXIDFWXUHUVSURGXFWVWRHVWDEOLVKPLQLPXPDFFHSWDEOHTXDOLW\,IWKH&RQWUDFWRU GHWHUPLQHVWKDWDSURFHVVRIVXEVWLWXWLQJ³ HTXDORUEHWWHU´SURGXFWVGXULQJELGGLQJLVIHDVLEOHWKHQWKH &RQWUDFWRUPXVWVSHFLI\WKHSURFHVVDQGJXDUDQWHHDQ³ HTXDORUEHWWHU´SURGXFW0RGHORUSURGXFWQXPEHUVIRU DSSURYHGDOWHUQDWHSURGXFWVPXVWEHFLWHGLQDGGHQGDZKHQSULRUDSSURYDOVRFFXU 6DYLQJV'HULYHG)URP&RPSHWLWLYH%LGGLQJ $OOVDYLQJVGHULYHGIURPFRPSHWLWLYHELGGLQJVKDOOEHFUHGLWHGWRWKH6WDWH,QVWLWXWLRQDVFDOFXODWHGLQ 6WHSVWKURXJKEHORZ8SRQVXEVWDQWLDOFRPSOHWLRQRIWKHZRUNWKH6WDWH,QVWLWXWLRQDQG&RQWUDFWRUVKDOO UHGXFH6HFWLRQVDQGWRWKH ³$GMXVWHG3URMHFW3ULFH´ 7KH$GMXVWHG3URMHFW3ULFHVKDOOEH FDOFXODWHGDVIROORZV x 6WHS±$GGWKHQHWUHGXFWLRQLQWKH7RWDO6XEFRQWUDFWRU&RVWV(TXLSPHQW&RVWVDQG2WKHU'LUHFW 3XUFKDVH&RVWVIURPWKHDPRXQWVVKRZQLQ6HFWLRQ,9RIWKLV([KLELWWRDUULYHDWWKH$GMXVWHG3URMHFW 7RWDO'LUHFW&RVW x 6WHS±$SSO\WKH3URMHFW0DUNXS¶VDVOLVWHGLQ([KLELW%WRWKH$GMXVWHG3URMHFW7RWDO'LUHFW&RVW WRDUULYHDWWKH$GMXVWHG3URMHFW0DUNXS x 6WHS±$GGWKH$GMXVWHG3URMHFW7RWDO'LUHFW&RVWDQGWKH$GMXVWHG3URMHFW0DUNXSWRDUULYHDWWKH $GMXVWHG3URMHFW3ULFH :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E :RUN2UGHU&RQWUDFW ([KLELW$ 6HFWLRQ,,, )DFLOLW\'HVFULSWLRQ &LYLF&HQWHU'ULYH6( 0&&5RFKHVWHU01 9DULRXV(YHQWV<HV :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E :RUN2UGHU&RQWUDFW ([KLELW$ 6HFWLRQ,9 &RQWUDFWRU¶V'XWLHVIRU(63& 6FRSHRIZRUNLV(&0 (QHUJ\&RQVHUYDWLRQ0HDVXUH VSHFLILF (&0±/LJKWLQJ5HWURILW 6SHFLILFTXDQWLWLHVDUHSURYLGHGLQ$SSHQGL[ /LJKWLQJ/LQHE\/LQH *HQHUDO/LJKWLQJ$UHDV )OXRUHVFHQWWXEHIL[WXUHVZLOOEHUHSODFHGZLWKQHZ/('WURXJKHUVLQORFDWLRQVVXFKDVRIILFHVFRQIHUHQFH URRPVDQGKDOOZD\V5HFHVVHGFDQ&)/IL[WXUHVZLOOEHUHSODFHGZLWKIXOO\LQWHJUDWHG/('IL[WXUHV%DOODVWV DUHHOLPLQDWHGIURPWKHV\VWHPLQERWKRIWK HVHFDVHV)OXRUHVFHQWWXEHIL[WXUHVLQ³EDFNRIWKHKRXVH´ORFDWLRQV VXFKDVZDUHKRXVHDQGVKRSVSDFHZLOOUHFHLYH¶/('WXEHVXWLOL]LQJWKHH[LVWLQJIL[WXUHV%DOODVWVZLOOEH UHPRYHGDQGWKHQHZ/('WXEHVZLOOEHSRZHUHGGLUHFWO\ZLWKOLQHYROWDJH6FUHZLQ/('ODPSVZLOODOVREH XVHGLQVHYHUDO³EDFNRIWKHKRXVH´ORFDWLRQV ([KLELW+DOO1RUWK/REE\ $XGLWRULXP 7KHH[LVWLQJ+,'DQGLQFDQGHVFHQWIL[WXUHVZRXOGEHUHPRYHGDQGUHSODFHGZLWKDVLQJOHW\SHRI/('IL[WXUHLQ DQHZOD\RXWLQWHQGHGWRSURYLGHHYHQOLJKWLQJFRYHUDJHLPSURYHGOLJKWTXDOLW\IOH[LELOLW\GLPPLQJDQG VLPSOLILHGRSHUDWLRQDQGPDLQWHQDQFH '0;FRPSDWLEOHZYROWRSWLRQ R )L[WXUHVZLOOLQWHJUDWHZLWKFRQWUROV\VWHPWHFKQRORJ\FXUUHQWO\XWLOL]HGWKURXJKRXWWKH&LYLF &HQWHUDQGDOVREH³IXWXUHSURRIHG´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x 7KHOLJKWLQJFRQWUROV\VWHPLQWKH$UHQDZRXOGEHUHSODFHGXVLQJ(7&WHFKQRORJ\FRQVLVWHQWZLWKWKHUHVWRIWKH 0D\R&LYLF&HQWHU1HZ'0;FRQWUROV\VWHPLQIUDVWUXFWXUHZRXOGEHSURYLGHGDORQJZLWKWZRQHZ WRXFKVFUHHQLQWHUIDFHV 5LYHUYLHZ5RRPV x )OXRUHVFHQWWURXJKHUVDQGUHFHVVHGFDQIL[WXUHVZLOOEHUHSODFHGZLWKQHZIXOO\LQWHJUDWHG/('IL[WXUHV1HZ DQGH[LVWLQJFRQWUROZLULQJZLOOEHLQWHJUDWHGWRSURYLGHIXOOGLPPLQJFDSDELOLW\RIQHZUHFHVVHG/('FDQ IL[WXUHVDQG/('WURXJKHUV1HZFRQWUROSDQHOVDQGXVHULQWHUIDFHVZLOOEHSURYLGHGDVSDUWRIWKHFRQWURO V\VWHPUHSODFHPHQW *(1(5$/&216,'(5$7,216$1'(;&/86,216 x ([LVWLQJZLULQJLVDVVXPHGWREHIXOO\IXQFWLRQDOLIGHILFLHQFLHVDUHGLVFRYHUHGGXULQJLPSOHPHQWDWLRQWKH\ZLOO EHEURXJKWWRWKH2ZQHU¶VDWWHQWLRQDQGDUHQRWFRQVLGHUHGSDUWRIWKLVSURMHFW x 0RYLQJRUUHORFDWLRQRIDQ\IDFLOLW\PDWHULDOVLQFOXGLQJEXWQRWOLPLWHGWRMDQLWRULDOPDWHULDOVRUVXSSOLHV VWDJLQJHTXLSPHQWRUVWRUDJHPDWHULDOVWKDWZRXOGHQFXPEHUWKHLQVWDOODWLRQRIWKLV(&0DUHWKHUHVSRQVLELOLW\ RIWKH2ZQHU x 7KH2ZQHUVKDOOSURYLGHUHDVRQDEOHDFFRPPRGDWLRQRIGHOLYHU\DQGVWRUDJHRIPDWHULDOVDQGHTXLSPHQW QHFHVVDU\IRULPSOHPHQWDWLRQRIWKLV(&07HPSRUDU\VWDJLQJDQGVWRUDJHRIHTXLSPHQWPD\EHUHTXLUHG ZLWKLQWKHIDFLOLW\ 0F.LQVWU\ZLOOFRRUGLQDWHZLWKWKH2ZQHUWRPLQLPL]HLPSDFWWRRSHUDWLRQVDQGVWDII ZRUNORDG x ,PSOHPHQWDWLRQRIWKLV(&0PD\UHTXLUHDUHDVWREHXQRFFXSLHGWRHQVXUHVDIHW\ 0F.LQVWU\ZLOOFRRUGLQDWH ZLWKWKH2ZQHUWRPLQLPL]HLPSDFWWRRSHUDWLRQVDQGVFKHGXOHGHYHQWV (&0±$XGLR6\VWHPV x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x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x (TXLSPHQWZLULQJDQGFRPSRQHQWVQRWVSHFLILFDOO\OLVWHGIRUUHSODFHPHQWLQ([KLELW(DUHDVVXPHGWREHIXOO\ IXQFWLRQDODQGZLOOEHUHXVHGLQFHUWDLQVLWXDWLRQV,IGHILFLHQFLHVDUHGLVFRYHUHGGXULQJLPSOHPHQWDWLRQWKH\ ZLOOEHE URXJKWWRWKH2ZQHU¶VDWWHQWLRQDQGDUHQRWFRQVLGHUHGSDUWRIWKLVSURMHFWZLWKWKHH[FHSWLRQQRWHG DERYHXQGHU([KLELW+DOOWKDWIDXOW\VSHDNHUFLUFXLWVLQWKHZHVWKDOODQGVWDJLQJDUHDVZLOOEHWUDFHGDQG UHSDLUHGDVSDUWRIWKHVFRSHRIWKLVSURMHFW :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E x 0RYLQJRUUHORFDWLRQRIDQ\IDFLOLW\PDWHULDOVLQFOXGLQJEXWQRWOLPLWHGWRMDQLWRULDOPDWHULDOVRUVXSSOLHV VWDJLQJHTXLSPHQWRUVWRUDJHPDWHULDOVWKDWZRXOGHQFXPEHUWKHLQVWDOODWLRQRIWKLV(&0DUHWKHUHVSRQVLELOLW\ RIWKH2ZQHU x 7KH2ZQHUVKDOOSURYLGHUHDVRQDEOHDFFRPPRGDWLRQRIGHOLYHU\DQGVWRUDJHRIPDWHULDOVDQGHTXLSPHQW QHFHVVDU\IRULPSOHPHQWDWLRQRIWKLV(&07HPSRUDU\VWDJLQJDQGVWRUDJHRIHTXLSPHQWPD\EHUHTXLUHG ZLWKLQWKHIDFLOLW\ 0F.LQVWU\ZLOOFRRUGLQDWHZLWKWKH2ZQHUWRPLQLPL]HLPSDFWWRRSHUDWLRQVDQGVWDII ZRUNORDG x ,PSOHPHQWDWLRQRIWKLV(&0PD\UHTXLUHDUHDVWREHXQRFFXSLHGWRHQVXUHVDIHW\ 0F.LQVWU\ZLOOFRRUGLQDWH ZLWKWKH2ZQHUWRPLQLPL]HLPSDFWWRRSHUDWLRQVDQGVFKHGXOHGHYHQWV (&0±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x (TXLSPHQWZLULQJDQGFRPSRQHQWVQRWVSHFLILFDOO\OLVWHGIRUUHSODFHPHQWLQ([KLELW(DUHDVVXPHGWREHIXOO\ IXQFWLRQDODQGZLOOEHUHXVHGLQFHUWDLQVLWXDWLRQV,IGHILFLHQFLHVDUHGLVFRYHUHGGXULQJLPSOHPHQWDWLRQWKH\ ZLOOEHEURXJKWWRWKH2ZQHU¶VDWWHQWLRQDQGDUHQRWFRQVLGHUHGSDUWRIWKLVSURMHFW x 0RYLQJRUUHORFDWLRQRIDQ\IDFLOLW\PDWHULDOVLQFOXGLQJEXWQRWOLPLWHGWRMDQLWRULDOPDWHULDOVRUVXSSOLHV VWDJLQJHTXLSPHQWRUVWRUDJHPDWHULDOVWKDWZRXOGHQFXPEHUWKHLQVWDOODWLRQRIWKLV(&0DUHWKHUHVSRQVLELOLW\ RIWKH2ZQHU x 7KH2ZQHUVKDOOSURYLGHUHDVRQDEOHDFFRPPRGDWLRQRIGHOLYHU\DQGVWRUDJHRIPDWHULDOVDQGHTXLSPHQW QHFHVVDU\IRULPSOHPHQWDWLRQRIWKLV(&07HPSRUDU\VWDJLQJDQGVWRUDJHRIHTXLSPHQWPD\EHUHTXLUHG ZLWKLQWKHIDFLOLW\ 0F.LQVWU\ZLOOFRRUGLQDWHZLWKWKH2ZQHUWRPLQLPL]HLPSDFWWRRSHUDWLRQVDQGVWDII ZRUNORDG x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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E WKH6WDWH,QVWLWXWLRQ¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW$ 3DFNHW3J 'E :RUN2UGHU&RQWUDFW ([KLELW% &RQWUDFWRU¶V)HHV &RQWUDFWRU¶V)HHVIRU,QYHVWPHQW*UDGH$XGLW 7KHWRWDOFRPSHQVDWLRQSD\DEOHWRWKH&RQWUDFWRUWRIXOO\SHUIRUPWKH&RQWUDFWRU¶V'XWLHVVSHFLILHGLQ([KLELW$ 6HFWLRQ,RIWKLV:RUN2UGHU&RQWUDFWVKDOOEHWKHOHVVHURIWKHWRWDOREOLJDWLRQSD\DEOHXQGHU6HFWLRQRIWKLV:RUN 2UGHU&RQWUDFWRUDQDPRXQWHTXDOWRWKHWRWDOVTXDUHIRRWDJHRIEXLOGLQJVSDFHWKDWWKH6WDWH,QVWLWXWLRQDXWKRUL]HV LQZULWLQJWREHDXGLWHGE\WKH&RQWUDFWRUPXOWLSOLHGE\ &RVWV0DUNXSVDQG)HHV &RVWVPDUNXSVDQGIHHVDSSOLFDEOHWRWKHFRVWHVWLPDWHVGHYHORSHGLQWKH3HUIRUPDQFHRIWKH&RQWUDFWRU¶V'XWLHVDV VSHFLILHGLQ([KLELW$RIWKLV:RUN2UGHU&RQWUDFWVKDOOQRWH[FHHGWKHORZHURIWKHPD[LPXPDPRXQWVHVWDEOLVKHG LQWKH0DVWHU&RQWUDFWRUWKLV:RUN2UGHU&RQWUDFW0DUNXSVVKDOOQRWEHDSSOLHGWRIHHV 3URMHFW&RVWV 7KHWDEOHEHORZLQGLFDWHVWKH&RQWUDFWRU¶VSURSRVHG0D[LPXP3HUFHQWDJHRIWKHFRQVWUXFWLRQSURMHFW¶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±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¶V)HHVIRU(63& *XDUDQWHHG(QHUJ\6DYLQJV3URJUDP)LQDQFLDO6XPPDU\ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU &LYLF&HQWHU/LJKWLQJ5HWURILW 'E 3URMHFW%XGJHW7DEOH 7KHSULFHVTXRWHGLQWKH&RQWUDFWRU¶V3URMHFW3URSRVDOZLOOEHHYDOXDWHGLQWKHWDEOHEHORZWRYHULI\SURSRVHGSULFHV GRQRWH[FHHGWKHORZHURIWKH0D[LPXP3HUFHQWRI7RWDO3URMHFW3ULFHDQG0D[LPXP3HUFHQW0DUNXSHVWDEOLVKHG LQWKH0DVWHU&RQWUDFWRUWKLV:RUN2UGHU&RQWUDFWZKLFKHYHULVORZHU DŝŶŶĞƐŽƚĂ'ƵĂƌĂŶƚĞĞĚ ŶĞƌŐLJ^ĂǀŝŶŐƐWƌŽŐƌĂŵͲWƌŽũĞĐƚƵĚŐĞƚtŽƌŬƐŚĞĞƚ ^ŝƚĞ͗DĂLJŽŝǀŝĐĞŶƚĞƌ DĂdžŝŵƵŵĐƚƵĂů ^ĞůĨͲWĞƌĨŽƌŵĞĚ KǀĞƌŚĞĂĚWƌŽĨŝƚWĞƌĐĞŶƚŽĨWĞƌĐĞŶƚŽĨ WƌŽũĞĐƚƵĚŐĞƚ&ĞĞƐ;ϭͿŽƐƚƐ;ϮͿWƌŝĐĞďLJ ^KŽƌ DĂƌŬƵƉ;ϰͿDĂƌŬƵƉ;ϰͿdŽƚĂůWƌŽũĞĐƚdŽƚĂůWƌŽũĞĐƚ ^ƵďĐŽŶƚƌĂĐƚĞĚ WƌŝĐĞ;ϰͿWƌŝĐĞ ŽŶƐƚƌƵĐƚŝŽŶ&ĞĞƐĂŶĚŽƐƚƐ ϵ͘Ϭйϳ͘Ϭй Ă^ƵďĐŽŶƚƌĂĐƚŽƌŽƐƚƐ;ŽŶƚƌĂĐƚŽƌŽƐƚƐƚŽ ^KͿEͬΨϭ͕ϵϳϴ͕ϵϰϮΨϭϳϴ͕ϭϬϱΨϭϯϴ͕ϱϮϲΨϮ͕Ϯϵϱ͕ϱϳϯEͬEͬEͬ ďKƚŚĞƌŝƌĞĐƚWƵƌĐŚĂƐĞƐŽĨ ƋƵŝƉŵĞŶƚ͕DĂƚĞƌŝĂů͕EͬΨͲΨͲΨͲΨͲEͬEͬEͬ ^ƵƉƉůŝĞƐ;^ƵƉƉůŝĞƌŽƐƚƐƚŽ ^KͿ ĐĞƐŝŐŶ;ϯͿΨϴϵ͕ϬϱϮΨͲΨͲΨͲΨϴϵ͕ϬϱϮϰ͘ϱй ϯ͘Ϯй ĚWƌŽũĞĐƚDĂŶĂŐĞŵĞŶƚΨϵϴ͕ϵϰϳΨͲΨͲΨͲΨϵϴ͕ϵϰϳϱ͘Ϭй ϯ͘ϲй ĞŽŵŵŝƐƐŝŽŶŝŶŐΨϯϵ͕ϱϳϵΨͲΨͲΨͲΨϯϵ͕ϱϳϵϮ͘Ϭй ϭ͘ϰй ĨdƌĂŝŶŝŶŐΨϭϵ͕ϳϴϵΨͲΨͲΨͲΨϭϵ͕ϳϴϵϭ͘Ϭй Ϭ͘ϳй ŐtĂƌƌĂŶƚLJΨϭϵ͕ϳϴϵΨͲΨͲΨͲΨϭϵ͕ϳϴϵϭ͘Ϭй Ϭ͘ϳй ŚŽŶƐƚƌƵĐƚŝŽŶDĞĂƐƵƌĞŵĞŶƚĂŶĚsĞƌŝĨŝĐĂƚŝŽŶΨϭϵ͕ϳϴϵΨͲΨͲΨͲΨϭϵ͕ϳϴϵϭ͘Ϭй Ϭ͘ϳй ŝWĞƌŵŝƚƐEͬΨϭϵ͕ϳϴϵΨϭ͕ϳϴϭΨϭ͕ϯϴϱΨϮϮ͕ϵϱϱϭ͘Ϭй Ϭ͘ϴй Eͬ ũWĞƌĨŽƌŵĂŶĐĞŽŶĚEͬΨϮϵ͕ϲϴϰΨϮ͕ϲϳϮΨϮ͕ϬϳϴΨϯϰ͕ϰϯϯϭ͘ϱй ϭ͘ϯй Eͬ ƐƵŵ;Ă͗ũͿсŬ WƌŽũĞĐƚWƌŝĐĞ^ƵďƚŽƚĂůǁŝƚŚKǀĞƌŚĞĂĚΘWƌŽĨŝƚΨϮϴϲ͕ϵϰϱΨϮ͕ϬϮϴ͕ϰϭϱΨϭϴϮ͕ϱϱϳΨϭϰϭ͕ϵϴϵΨϮ͕ϲϯϵ͕ϵϬϲ KƚŚĞƌ&ĞĞƐ Ž/ŶǀĞƐƚŵĞŶƚ'ƌĂĚĞƵĚŝƚĂŶĚWƌŽũĞĐƚWƌŽƉŽƐĂůΨϵ͕ϬϬϬΨϵ͕ϬϬϬEͬEͬ ƉŽŶƚŝŶŐĞŶĐLJΨϵϴ͕ϵϱϬΨϵϴ͕ϵϱϬϯ͘ϲй ƐƵŵ;Ŭ͗ƉͿсƋ dKd>WZK: dWZ/ ΨϮ͕ϳϰϳ͕ϴϱϲ EKd ^͗;ϭͿ&ĞĞƐŝŶĐůƵĚĞ ^KƐĞůĨͲƉĞƌĨŽƌŵĞĚǁŽƌŬ͕/'ĂŶĚĐŽŶƚŝŶŐĞŶĐLJ͘DĂƌŬƵƉƐƐŚĂůůŶŽƚďĞĂƉƉůŝĞĚƚŽĨĞĞƐ͘ ^KƐŚĂůůƉƌŽǀŝĚĞĂůŝƐƚŽĨŚŽƵƌůLJƌĂƚĞƐĂŶĚƉŽƐŝƚŝŽŶĚĞƐĐƌŝƉƚŝŽŶƐĨŽƌůĂďŽƌŽƌƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚ͘ ;ϮͿŽƐƚƐŝŶĐůƵĚĞƐƵďĐŽŶƚƌĂĐƚĞĚǁŽƌŬĂŶĚĚŝƌĞĐƚƉƵƌĐŚĂƐĞƐŽĨĞƋƵŝƉŵĞŶƚ͕ŵĂƚĞƌŝĂůĂŶĚƐƵƉƉůŝĞƐŝŶƐƚĂůůĞĚŽŶƚŚĞƉƌŽũĞĐƚ͘ ;ϯͿĞƐŝŐŶŝŶĐůƵĚĞƐĂůůƚLJƉĞƐŽĨĞŶŐŝŶĞĞƌŝŶŐ͗ĚĞƐŝŐŶ͕ĞůĞĐƚƌŝĐĂů͕ŵĞĐŚĂŶŝĐĂů͕ƐƚƌƵĐƚƵƌĂů͕Đŝǀŝů͕ĞŶĞƌŐLJŵŽĚĞůŝŶŐ͕ĞƚĐ͘ ;ϰͿ>ĞƐƐĞƌƉĞƌĐĞŶƚŽĨKǀĞƌŚĞĂĚ͕WƌŽĨŝƚ͕ĂŶĚdŽƚĂůWƌŽũĞĐƚWƌŝĐĞĨƌŽŵ ^KΖƐDĂƐƚĞƌŽŶƚƌĂĐƚŽƌtŽƌŬKƌĚĞƌŽŶƚƌĂĐƚ͘ ŽůŽƌсŝŶƉƵƚĐĞůů ZĞǀ͘;ϯͬϮϰͬϮϬϭϰͿ 1RWLFHRI:RUN&RPSOHWLRQ 7KH&RQWUDFWRUVKDOOVXEPLW$,$'RFXPHQW*QWDWLRQDQGLQIRUPDWLRQLQFOXGLQJFRQWDFWQDPHVDQGFRQWDFWLQIRUPDWLRQ x )LQDO&RPPLVVLRQLQJ5HSRUWDVVSHFLILHGLQ$WWDFKPHQW 6\VWHPV6WDUWXSDQG&RPPLVVLRQLQJ*XLGHOLQHV :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±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Ϭй ϭϬ 0 9 $' %& 'E :KROH3URMHFW'DWD*OREDO$VVXPSWLRQV 1HLWKHUWKHFRQWUDFWRUQRUWKH6WDWH,QVWLWXWLRQKDVVLJQLILFDQWFRQWURORYHUSUHYDLOLQJ LQWHUHVWUDWHV+LJKHULQWHUHVWUDWHVZLOOLQFUHDVHSURMHFWFRVWILQDQFLQJSURMHFWWHUPRUERWK7KHWLPLQJ RIWKHFRQWUDFWVLJQLQJPD\LPSDFWWKHDYDLODEOHLQWHUHVWUDWHDQGSURMHFWFRVW 7KHFOLHQWPD\HOHFWWRILQDQFHWKHSURMHFWLQWHUQDOO\RUXWLOL]HDQ5)3IRUSXUSRVHVRIREWDLQLQJD´PDUNHW UDWHµ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²&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU²0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW& 3DFNHW3J 'E 7KH6WDWH,QVWLWXWLRQDQGWKHFRQWUDFWRUPD\DJUHHWKDWWKHSURMHFWZLOO LQFOXGHVDYLQJVIURPUHFXUULQJDQGRURQHWLPHFRVWV7KLVPD\LQFOXGHRQHWLPHVDYLQJVIURPDYRLGHG H[SHQGLWXUHVIRUSURMHFWVWKDWZHUHDSSURSULDWHGEXWZLOOQRORQJHUEHQHFHVVDU\,QFOXGLQJRQHWLPH FRVWVDYLQJVEHIRUHWKHPRQH\KDVEHHQDSSURSULDWHGPD\LQYROYHVRPHULVNWRWKH6WDWH,QVWLWXWLRQ 5HFXUULQJVDYLQJVJHQHUDOO\UHVXOWIURPUHGXFHG2 0H[SHQVHVRUUHGXFHGZDWHUFRQVXPSWLRQ7KHVH 2 0DQGZDWHUVDYLQJVPXVWEHEDVHGRQDFWXDOVSHQGLQJUHGXFWLRQV &DSLWDOFRVWDYRLGDQFHLVQRWDSSOLFDEOHWRWKLVRSSRUWXQLW\2 0VDYLQJVDUHEDVHGRQDQWLFLSDWHG PDLQWHQDQFHFRVWVDVVRFLDWHGZLWKWKHXSNHHSRIV\VWHPVDQGHTXLSPHQWDQGOLPLWHGWRH[WHUQDOO\ SURYLGHGODERUPDWHULDOVDQGFRPSRQHQWV7KH2 0VDYLQJVSRWHQWLDOH[LVWVRQO\IRUWKHUHPDLQLQJOLIH F\FOHGXUDWLRQRIWKHHTXLSPHQWRUV\VWHPVDQGLVDQDQQXDOL]HGEDVLVDQGFRQVLVWVRIIDLU ORFDO PDUNHW ODERUUDWHVDQGDYHUDJHUHWDLOFRVWRIPDWHULDOV %RWKWKHFRQWUDFWRUDQGWKH6WDWH,QVWLWXWLRQFDQFDXVHGHOD\V)DLOXUHWRLPSOHPHQWDYLDEOH SURMHFWLQDWLPHO\PDQQHUFRVWVWKH6WDWH,QVWLWXWLRQLQWKHIRUPRIORVWVDYLQJVDQGFDQDGGFRVWWRWKH SURMHFW HJFRQVWUXFWLRQLQWHUHVWUHPRELOL]DWLRQ 7KHSURSRVHGVFKHGXOHZLOOEHSURYLGHGSULRUWRFRQWUDFWH[HFXWLRQ&DUHIXOFRRUGLQDWLRQZLWKVFKHGXOHG HYHQWVDWWKH&LYLF&HQWHUZLOOEHUHTXLUHGWRPLQLPL]HGLVUXSWLRQWRRSHUDWLRQVZKLOHPDLQWDLQLQJDQ DSSURSULDWHDPRXQWRISURJUHVVRQWKHSURMHFW0F.LQVWU\ZLOOZRUNWRHQVXUHWKDWLPSOHPHQWDWLRQPRYHV DORQJDVTXLFNO\DVFRQGLWLRQVSHUPLW6DIHW\RIZRUNHUVDQGRFFXSDQWVZLOOEHRISULPDU\LPSRUWDQFH 7KH6WDWH,QVWLWXWLRQFRQWUROVPDMRUFKDQJHVLQIDFLOLW\XVHLQFOXGLQJ FORVXUH 6KRXOGWKH0D\R&LYLF&HQWHUH[SHULHQFHDPDMRUFKDQJHLQIDFLOLW\RSHUDWLRQVLQFOXGLQJORVWRUGHFUHDVHG IXQGLQJFKDQJHLQW\SLFDORSHUDWLRQRUSUHPDWXUHFORVXUHRIIDFLOLWLHV0F.LQVWU\ZLOOPDNHSURSHUFKDQJHV WRWKHSHUIRUPDQFHFRQWUDFWWRPLWLJDWHWKHULVNRIQRWPHHWLQJJXDUDQWHHGHQHUJ\VDYLQJV 7KH6WDWH,QVWLWXWLRQJHQHUDOO\KDVFRQWURORYHURSHUDWLQJKRXUV,QFUHDVHVDQG GHFUHDVHVLQRSHUDWLQJKRXUVFDQVKRZXSDVLQFUHDVHVRUGHFUHDVHVLQ´VDYLQJVµ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´VDYLQJVµGHSHQGLQJRQWKH0 9PHWKRG ,IWKHHTXLSPHQWORDGVDUHVWLSXODWHGWKHEDVHOLQHVKRXOGEHFDUHIXOO\GRFXPHQWHGDQGDJUHHG WRE\ERWKSDUWLHV :2&²&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU²0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW& 3DFNHW3J 'E (TXLSPHQWORDGVKDYHEHHQFDOFXODWHGDQGFDOLEUDWHGEDVHGRQWKHRSHUDWLQJFKDUDFWHULVWLFVRIWKHSDVW WKUHH\HDUVDW0D\R&LYLF&HQWHU7KLVLQIRUPDWLRQKDVEHHQPXWXDOO\DJUHHGXSRQ3UHDQGSRVWZDWWDJH PHDVXUHPHQWVZLOOEHWDNHQVHOHFWLYHO\IRUDOOOLJKWLQJPHDVXUHVZKLFKZLOOYHULI\WKDWSRZHUFRQVXPSWLRQLV ZLWKLQH[SHFWHGDQGFDOFXODWHGUDQJHV $QXPEHURIHQHUJ\HIILFLHQF\PHDVXUHVDUHDIIHFWHGE\ZHDWKHU1HLWKHUWKHFRQWUDFWRUQRU WKH6WDWH,QVWLWXWLRQKDVFRQWURORYHUWKHZHDWKHU6KRXOGWKH6WDWH,QVWLWXWLRQDJUHHWRDFFHSWULVNIRU ZHDWKHUIOXFWXDWLRQVLWVKDOOEHFRQWLQJHQWXSRQDJJUHJDWHSD\PHQWVQRWH[FHHGLQJDJJUHJDWHVDYLQJV 7RHOLPLQDWHZHDWKHUFRQGLWLRQVLQWKHVDYLQJVFDOFXODWLRQVWKH+9$&HQHUJ\VDYLQJVKDYHEHHQFDOFXODWHG XVLQJ70<ZHDWKHUGDWDIRUWKH5RFKHVWHU,QWHUQDWLRQDO$LUSRUW\HDUKLVWRULFDOGDWDIRUWKH0D\R&LYLF &HQWHUZDVXVHGWRIRUPXODWHWKHEDVHOLQHWRZKLFKWKHVHZHDWKHUDGMXVWPHQWVKDYHEHHQPDGH 0DQ\HQHUJ\FRQVHUYDWLRQPHDVXUHVUHTXLUHXVHUSDUWLFLSDWLRQWRJHQHUDWH VDYLQJV HJFRQWUROVHWWLQJV 7KHVDYLQJVFDQEHYDULDEOHDQGWKHFRQWUDFWRUPD\EHXQZLOOLQJWRLQYHVW LQWKHVHPHDVXUHV ,ISHUIRUPDQFHLVVWLSXODWHGGRFXPHQWDQGUHYLHZDVVXPSWLRQVFDUHIXOO\DQG FRQVLGHU0 9WRFRQILUPWKHFDSDFLW\WRVDYH HJFRQILUPWKDWWKHFRQWUROVDUHIXQFWLRQLQJSURSHUO\ (QHUJ\VDYLQJVDUHEDVHGRQFRPSDUDEOHXVHUEHKDYLRUEHIRUHDQGDIWHUWKHSURMHFW0F.LQVWU\ZLOOHQVXUH WKDWFRQWURORIDIIHFWHGV\VWHPVLVPDLQWDLQHGRUHQKDQFHGVRWKDW0D\R&LYLF&HQWHUVWDIIDUHIXOO\HQDEOHG WRUHDOL]HWKHSURSRVHGVDYLQJV 7KHFRQWUDFWRUKDVFRQWURORYHUWKHVHOHFWLRQRIHTXLSPHQWDQGLVUHVSRQVLEOH IRULWVSURSHULQVWDOODWLRQFRPPLVVLRQLQJDQGSHUIRUPDQFH7KHFRQWUDFWRUKDVUHVSRQVLELOLW\WR GHPRQVWUDWHWKDWWKHQHZLPSURYHPHQWVPHHWH[SHFWHGSHUIRUPDQFHOHYHOVLQFOXGLQJVSHFLILHG HTXLSPHQWFDSDFLW\VWDQGDUGVRIVHUYLFHDQGHIILFLHQF\ 0F.LQVWU\ZLOORYHUVHHWKHLQVWDOODWLRQVWDUWXSDQGFRPPLVVLRQLQJRIWKHLQVWDOOHGHTXLSPHQW7KH HTXLSPHQWZLOOEHVHWXSWRRSHUDWHDWRSWLPDOSHUIRUPDQFHRYHUWKHORQJWHUP,WLVUHFRPPHQGHGWKDWWKH LPSOHPHQWHGVHTXHQFHVDQGRSHUDWLRQDOSDUDPHWHUVEHDGKHUHGWRXQOHVVWKHUHLVDFKDQJHWRIDFLOLW\ FRQGLWLRQVRUVFKHGXOHWKDWUHTXLUHVDFKDQJHEHPDGH0F.LQVWU\UHTXHVWVWREHQRWLILHGRIDQ\FKDQJHV DIIHFWLQJWKHHQHUJ\XVDJHRIWKHIDFLOLW\VRDSSURSULDWHDGMXVWPHQWVFDQEHPDGHWRWKHEDVHOLQHDQGRU SRVWSURMHFWGDWD0F.LQVWU\ZLOODOVRDVVXPHUHVSRQVLELOLW\WRPRQLWRUHTXLSPHQWSHUIRUPDQFHWKDWDIIHFWV WKHJXDUDQWHHGHQHUJ\VDYLQJV7KLVHTXLSPHQWPRQLWRULQJSURFHGXUHZLOOEHFRQGXFWHGRQDQDQQXDOEDVLV XQWLOWKHSHUIRUPDQFHJXDUDQWHHKDVH[SLUHG 3HUIRUPDQFHRIWKHGD\WRGD\RSHUDWLRQVDFWLYLWLHVLVQHJRWLDEOHDQGFDQLPSDFW SHUIRUPDQFH+RZHYHUWKHFRQWUDFWRUEHDUVWKHXOWLPDWHULVNUHJDUGOHVVRIZKLFKSDUW\SHUIRUPVWKH DFWLYLW\ :2&²&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU²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·VUHVSRQVLELOLW\WRIDFLOLWDWHDQGIXQGWKHUHSDLUVRUUHSODFHPHQWVQHHGHG7KH&LYLF&HQWHU VKDOOQRWLI\0F.LQVWU\RIHTXLSPHQWIDLOXUHRUUHSODFHPHQWHYHQLILWLVRXWVLGHWKHZDUUDQW\SHULRG$OO LQVWDOOHGHTXLSPHQWVKDOOPHHWRUH[FHHGWKHWHUPRIWKHSHUIRUPDQFHFRQWUDFW :2&²&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU²0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW& 3DFNHW3J 'E 'HWDLOEDVHOLQHHQHUJ\DQGZDWHUUDWHV 'E 0HDVXUHPHQW0HWKRGRORJ\ (&0VZLOOIROORZ2SWLRQ$ 3RVW$FFHSWDQFH3HUIRUPDQFHSHULRG 7KHFRQWUDFWWHUPRU´SHUIRUPDQFHSHULRGµLVHVWDEOLVKHGDV\HDUVIURPVXEVWDQWLDOFRPSOHWLRQDQGWKH FRPPHQFHPHQWRIHQHUJ\VDYLQJV 'HILQHVFKHGXOHRIYHULILFDWLRQUHSRUWLQJDFWLYLWLHV /LJKWLQJ(&0/LJKWLQJ5HWURILW3UH3RVWDPSVSHUIL[WXUHW\SH $XGLR6\VWHP(&0$XGLR6\VWHPV(TXLSPHQWW\SH TXDQWLW\ &RQWUROV0HFKDQLFDO(&0+9$&,PSURYHPHQWV(TXLSPHQWUXQWLPH VHWSRLQWV /LJKWLQJ(&06WUHHW/LJKWLQJ3UH²6SULQJ 'E /LJKWLQJ5HWURILW 3DFNHW3J 3DFNHW3J 'E VHQVRUVWXUQOLJKWVRIIZKHQQRRFFXSDQF\LVGHWHFWHG7KLVRFFXUVDIWHUD GHULYHGIURPWKHIROORZLQJ2KP¶VODZHTXDWLRQPRGLILHGWRFRPSXWH HEXLOGLQJHYHQWVFKHGXOHDQGWKHEDVHOLQHRFFXSDQF\7ZR 7KHDYHUDJHPHDVXUHGLQSXWZDWWDJHIRUHDFKIL[WXUHW\SHZLOODOVREHPHDVXUHGDQGDSSOLHGWRWKHVDPHIL[WXUH GRZQRFFXSDQF\DQGDFWXDOHYHQWWLPHVDUHWUDFNHGZLWKLQWKHV\VWHP7KH HQWVKHOGZLWKLQ OGLQJLVRFFXSLHG,WZDVIRXQGWKDWVDYLQJVRSSRUWXQLW\H[LVWV PHDVXUHPHQWVWKURXJKWHFKQRORJ\XSJUDGHV /(' $GGLWLRQDOVDYLQJVDUHDFKLHYHGE\UHGXFLQJWKHDPRXQWRI RUOLJKWIL[WXUH RU VWUDWHJLHVZHUHXVHGWRGHWHULPLQHWKHPRVWOLNHO\YDOXHVIRUWKHVHYDULDEOHVOLJKWDQGRFFXSDQF\VHQVRUV WXQLW\IRUOLJKWLQJ (QHUJ\VDYLQJVUHVXOWLQJIURPWKHOLJKWLQJLPSURYHPHQWVDUHGULYHQE\ORZHULQJWKHLQVWDQWDQHRXVFXUUHQW SURMHFWDGMXVWPHQWVPD\EHQHHGHGLIWKHUHDUHFKDQJHVWRWKHVFKHGXOHVVHWSRLQWV OHYHO7KHZDWWDJHPHDVXUHPHQWVZLOOEHVSRWUHDGLQJVWDNHQE\DTXDOLILHGHOHFWULFLDQRQFHSULRUWR $OVRWKHFRPSXWHUL]HGRQOLQHVFKHGXOLQJZDVXVHGWRHVWLPDWHWKHYDULDEOHRFFXSDQF\GXHWRHY W\SHVWKDWZHUHQRWSDUWRIWKHVDPSOH7KHVHPHDVXUHPHQWVZLOOEHWDNHQHLWKHUDWWKHVZLWFK ZHUHGHSOR\HGLQDYDULHW\RIDUHDV7KHVHORJJHUVGHWHUPLQHWKHSRWHQWLDOVDYLQJVRSSRU SUHYLRXVWZR\HDUVRIKLVWRU\ZHUHXVHGWRGHWHUPLQHWKHDYHUDJHVSDFHRFFXSDQF\ 'HWDLOHGOLQHE\OLQHFDOFXODWLRQVDUHSURYLGHGDVDQDWWDFKPHQWWRWKLV0 9SODQ ሻ ܪݑݎݏ ܹ݇ ݏ ݑݎ ǡ ݀݁݉ܽ݊݀ ݄ כ VHTXHQFHVWKDWPXVWEHPDGHWRDFFRPPRGDWHDQ\IDFLOLW\FKDQJHV ݁ݎܽݐ݅݊݃ ܹ݇ ሺ IRUDQLQFUHDVHGDPRXQWRIOLJKWLQJFRQWUROZLWKLQWKHEXLOGLQJ െ ݅݊ݑݐ ሻ 7KHEDVHOLQHIRUWKLV(&0LVGHILQHGE\WKHIROORZLQJLWHPV ܪݑݎݏ ܽ݊݊ݑ݈ܽ ݐ݅݊݃ 0F.LQVWU\&R//& 7KHPDLQYDULDEOHVWKDWGULYHWKHEDVHOLQHXVDJHDUHWK 7RWDOKRXUVRIRSHUDWLRQRIWKHH[LVWLQJOLJKWLQJ ݄ כ ݈݅݃ ൌ ܹ݇ 7RWDOTXDQWLW\DQGW\SHRIH[LVWLQJOLJKWLQJ 7KLVFROOHFWHGGDWDZDVXVHGWRVKRZKRZWKHEXL ܪݑݎݏ ൌ ሺ 7RWDO N:GUDZ RIWKHH[LVWLQJOLJKWLQJ ܹ݇ ൌ 7KHHQHUJ\VDYLQJVDPRXQWVIRUOLJKWLQJZHUH ݄ ܹ݇ LPSOHPHQWDWLRQRIWKHLQWHULRUOLJKWLQJ(&0 DQQXDORSHUDWLRQKRXUV8VHRIDXWRPDWLF ² &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU XSDQGWDNH KRXUXQLW *(63:RUN2UGHU&RQWUDFW([KLELW& FRQWUROVZLWKLQWKHEXLOGLQJ WKHVSDFH%RWKWKHVHW VDYLQJVLQWKHNLORZDWW %DVHOLQHDQGRUSRVW VHWWLPHSHULRG :KHUH xxx ² :2& 3DFNHW3J 'E 3URYLGHMXVWLILFDWLRQIRURWKHUFRVWVDYLQJVLIDSSOLFDEOH VDYLQJVLIDSSOLFDEOH 0F.LQVWU\&R//& 3URYLGHMXVWLILFDWLRQIRU2 0FRVW 1RWDSSOLFDEOHIRUWKLV(&01RWDSSOLFDEOHIRUWKLV(&0 ² &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU *(63:RUN2UGHU&RQWUDFW([KLELW& ² :2& 3DFNHW3J 'E zĞĂƌϭ;ΨͬLJƌͿ dŽƚĂůĐŽƐƚƐ͕ ϵϵϰ ϯϮϵϱϵϵ ΨΨΨ Ͳ ΘD KƚŚĞƌĞŶĞƌŐLJĐŽƐƚƐ͕zĞĂƌϭ ϬϯϰϭϯDDƚƵͬŬtŚͿ͘ ;ΨͬLJƌͿ ƌĞůĂƚĞĚK ĐŽƐƚ͕zĞĂƌ ϭ;ΨͬLJƌͿ ĞŶĞƌŐLJ KƚŚĞƌ ΎΎ/ĨĞŶĞƌŐLJŝƐƌĞƉŽƌƚĞĚŝŶƵŶŝƚƐŽƚŚĞƌƚŚĂŶDDƚƵ͕ƉƌŽǀŝĚĞĂĐŽŶǀĞƌƐŝŽŶĨĂĐƚŽƌƚŽDDƚƵĨŽƌůŝŶŬƚŽĐŽƐƚƐĐŚĞĚƵůĞƐ;Ğ͘Ő͕͘Ϭ͘Ϭ ;DDƚƵͬLJƌͿΎΎ KƚŚĞƌĞŶĞƌŐLJ SULPDULO\E\YLVXDOLQVSHFWLRQVLQSXWE\WKHIDFLOLW\ RSHUDWRUVDQGDQDO\VLVRIWKHV\VWHPLQYHQWRU\,QIRUPDWLRQDERXWWKHW\SLFDORSHUDWLQJVFKHGXOHVVHWSRLQWV ƵƐĞ FVIRUWKH 5HSODFHPHQWRIROGHUDQDORJKLJKSRZHUFRQVXPLQJDPSOLILHUVZLWKQHZGLJLWDOKLJKHIILFLHQF\PRGHOV zĞĂƌϭ;ΨͬLJƌͿ tĂƚĞƌĐŽƐƚ͕ FKDUDFWHULVWL ;ŐĂůůŽŶƐͬLJƌͿ tĂƚĞƌƵƐĞ DQGVHTXHQFLQJZDVJDWKHUHG(QHUJ\FDOFXODWLRQVZHUHFUHDWHGXVLQJW\SLFDORSHUDWLQJ ŐĂƐĐŽƐƚ͕ EĂƚƵƌĂů ΎŶŶƵĂůĞůĞĐƚƌŝĐĚĞŵĂŶĚƐĂǀŝŶŐƐ;ŬtͬLJƌͿŝƐƚŚĞƐƵŵŽĨƚŚĞŵŽŶƚŚůLJĚĞŵĂŶĚƐĂǀŝŶŐƐ͘ zĞĂƌϭ ;ΨͬLJƌͿ (&0 EĂƚƵƌĂůŐĂƐƵƐĞ ;DDƚƵͬLJƌͿΎΎ 7KHEDVHOLQHHQHUJ\GHYHORSPHQWIRUWKLV(&0ZDVGHYHORSHG ĐŽƐƚ͕zĞĂƌ ĚĞŵĂŶĚ ϭ;ΨͬLJƌͿ ůĞĐƚƌŝĐ 0F.LQVWU\&R//& ΨϭϭϴΨϮϭϰ Ψϯϱϱ ĚĞŵĂŶĚΎ ;ŬtͬLJƌͿ ůĞĐƚƌŝĐ ϲ͘ϲ ϮϬϭϮ ĐŽƐƚ͕zĞĂƌ ² ϭ;ΨͬLJƌͿ ůĞĐƚƌŝĐ ĞŶĞƌŐLJ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU ϲϯϵϮϭϭ ϯϴϱ ΨΨΨ *(63:RUN2UGHU&RQWUDFW([KLELW& ĞŶĞƌŐLJƵƐĞ ;ŬtŚͬLJƌͿ ůĞĐƚƌŝĐ ϭϬ͕ϵϵϮ ϯ͕ϲϯϴ ϲ͕ϲϭϵ EDVHOLQHHTXLSPHQW dŽƚĂůĞŶĞƌŐLJ ;DDƚƵͬLJƌͿ ƵƐĞ ƚƵ͘ ϯϴ ϭϮ Ϯϯ ϲ DDƚƵсϭϬ ŝŶƐƚĂůůĂƚŝŽŶ ĂƐĞůŝŶĞ ^ĂǀŝŶŐƐ DϮ ² EŽƚĞƐ ;ϵϬйͿ Ͳ :2& WŽƐƚ ƵƐĞƵƐĞ 3DFNHW3J 'E 3DFNHW3J 'E 3DFNHW3J 'E zĞĂƌϭ;ΨͬLJƌͿ dŽƚĂůĐŽƐƚƐ͕ ϭϯϰ͕ϴϭϳ ϵϬ͕ϯϬϮϰϬ͕Ϯϯϭ ΨΨΨ Ͳ ƌĞůĂƚĞĚKΘD KƚŚĞƌĞŶĞƌŐLJĐŽƐƚƐ͕zĞĂƌϭ ϬϯϰϭϯDDƚƵͬŬtŚͿ͘ ;ΨͬLJƌͿ ĐŽƐƚ͕zĞĂƌ ϭ;ΨͬLJƌͿ ĞŶĞƌŐLJ KƚŚĞƌ ΎΎ/ĨĞŶĞƌŐLJŝƐƌĞƉŽƌƚĞĚŝŶƵŶŝƚƐŽƚŚĞƌƚŚĂŶDDƚƵ͕ƉƌŽǀŝĚĞĂĐŽŶǀĞƌƐŝŽŶĨĂĐƚŽƌƚŽDDƚƵĨŽƌůŝŶŬƚŽĐŽƐƚƐĐŚĞĚƵůĞƐ;Ğ͘Ő͕͘Ϭ͘Ϭ DDƚƵͬLJƌͿΎΎ KƚŚĞƌĞŶĞƌŐLJ ĞĂŵ 3QHXPDWLFWR''&FRQYHUVLRQ+LJKHIILFLHQF\PRWRUUHSODFHPHQW9)'LQVWDOODWLRQ'HPDQGEDVHGYHQWLODWLRQ ^ƚ ƵƐĞ; ϯ͕ϳϯϴϯ͕ϭϬϰ ϱϳϬ zĞĂƌϭ;ΨͬLJƌͿ tĂƚĞƌĐŽƐƚ͕ ;ŐĂůůŽŶƐͬLJƌͿ tĂƚĞƌƵƐĞ ŐĂƐĐŽƐƚ͕ EĂƚƵƌĂů ΎŶŶƵĂůĞůĞĐƚƌŝĐĚĞŵĂŶĚƐĂǀŝŶŐƐ;ŬtͬLJƌͿŝƐƚŚĞƐƵŵŽĨƚŚĞŵŽŶƚŚůLJĚĞŵĂŶĚƐĂǀŝŶŐƐ͘ zĞĂƌϭ ;ΨͬLJƌͿ (&0 EĂƚƵƌĂůŐĂƐƵƐĞ ;DDƚƵͬLJƌͿΎΎ zĞĂƌϭ ůĞĐƚƌŝ ;ΨͬLJƌͿ ĚĞŵĂ ΨϭϭϴΨϮϭϰ ĐŽƐƚ͕ 0F.LQVWU\&R//& Ψϯϱϱ ŶĚ Đ ĚĞŵĂŶĚ ;ŬtͬLJƌͿ ůĞĐƚƌŝĐ Ύ ϳϬϴ ϲϵϲ ϭϮ ĞŶĞƌŐLJĐŽƐƚ͕ HQKDQFHPHQW6WHDPWUDSUHSODFHPHQW ůĞĐƚƌŝĐ ΨϳϮ͕ϲϵϲΨϯϴ͕ϱϲϮΨϯϬ͕ϳϮϬ zĞĂƌϭ ;ΨͬLJƌͿ ² &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU ĞŶĞƌŐLJƵƐĞ ϭ͕Ϯϱϭ͕ϮϮϯ *(63:RUN2UGHU&RQWUDFW([KLELW& ;ŬtŚͬLJƌͿ ůĞĐƚƌŝĐ ϲϲϯ͕ϳϭϴ ϱϮϴ͕ϳϱϱ dŽƚĂůĞŶĞƌŐLJ ;DDƚƵͬLJƌͿ ƵƐĞ ƚƵ͘ ϳ͕ϯϯϮϰ͕ϴϬϳϮ͕ϮϳϮ ϲ ƚƵсϭϬ ŝŶƐƚĂůůĂƚŝŽŶ ĂƐĞůŝŶĞ ^ĂǀŝŶŐƐ Dϯ ² EŽƚĞƐ ;ϵϬйͿ Ͳ :2& WŽƐƚ DD ƵƐĞƵƐĞ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² &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU 7KHEDVHOLQHHQHUJ\GHYHORSPHQW *(63:RUN2UGHU&RQWUDFW([KLELW& VSDFHREVHUYDWLRQV REVHUYDWLRQV VHWSRLQWV $QQXDO xxxxx ²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¶VGDWD([LVWLQJ9)'¶VDUHQRWPRGXODWLQJ3URSRVHG9)'PRGXODWLRQZDVOLPLWHGWRDPLQLPXPRI VSHHG XSWHDUGRZQDQGPLVFHOODQHRXVKRXUVDUHRIPD[LPXPRFFXSDQF\OHYHO $VVXPLQJDIORZIDFWRURIDVWUDSZLOOKDYHFRQGHQVDWHSDVVLQJWKURXJKLWDVZHOOWKDWZLOOOLPLW RQRXWVLGHDLUGDPSHUVRQDOOXQLWV 3URYLGHMXVWLILFDWLRQIRURWKHUFRVWVDYLQJVLI 7KHSURSRVHGHQHUJ\VDYLQJVFDOFXODWLRQVIROORZWKH 0RWRUHIILFLHQFLHVDUHNHSWWKHVDPH (FRQRPL]HU DELOLW\WRXWLOL]HRX IUHHO\WKURXJKWUDSDWDOOWLPHV 1RWDSSOLFDEOHWRWKLV(&0 6SDFHWHPSHUDWXUHVHWSRL ² 2FFXSDQF\OHYHOVIRUVHW &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU UXQWLPHUHGXFWLRQL *(63:RUN2UGHU&RQWUDFW([KLELW& 1RWDSSOLFDEOHWRWKLV(&0 027255(3/$&(0(176 2FFXSDQ $+8352*5$00,1* 67($075$36 xxxxxxxxxxxxxxx ² :2& 'E :RUN2UGHU&RQWUDFW ([KLELW' 6DYLQJV*XDUDQWHH (QHUJ\DQG&RVW6DYLQJV*XDUDQWHH 7KH&RQWUDFWRUJXDUDQWHHVWKDWWKHDFWXDOWRWDODQQXDOHQHUJ\DQGRSHUDWLRQV PDLQWHQDQFHFRVWVDYLQJVWKDWZLOOEH UHDOL]HGE\WKH6WDWH,QVWLWXWLRQDVDUHVXOWRIWKHZRUNSHUIRUPHGDQGWKHVHUYLFHVSURYLGHGE\WKH&RQWUDFWRUXQGHU WKLV:RUN2UGHU&RQWUDFWZLOOHTXDORUH[FHHGWKHWRWDODQQXDOFRVWVLQFXUUHGE\WKH6WDWH,QVWLWXWLRQLQHDFK\HDURI WKLV:RUN2UGHU&RQWUDFWDVVHWIRUWKLQ([KLELW/ /HDVH3XUFKDVH$JUHH PHQW DQG([KLELW0 &RQWUDFWRU¶V 0HDVXUHPHQWDQG9HULILFDWLRQ6HUYLFHV 7KH&RQWUDFWRUVKDOOGHWHUPLQHDQQXDOFRVWVDYLQJVLQDFFRUGDQFHZLWKWKH PHWKRGVDQGUHTXLUHPHQWVVHWIRUWKLQ([KLELW& 6DYLQJV0HDVXUHPHQWDQG9HULILFDWLRQ3ODQ VXEMHFWWRWKH DGMXVWPHQWVLIDQ\SURYLGHGIRULQWKLV([KLELW7KH&RQWUDFWRU¶V(QHUJ\DQG&RVW6DYLQJV*XDUDQWHHLVVHWIRUWKLQ DQQXDOLQFUHPHQWVIRUWKHWHUPRIWKH&RQWUDFWDVVSHFLILHGLQWKHIROORZLQJ7DEOH' 7RWDO$QQXDO*XDUDQWHHG 6DYLQJV 7DEOH'±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¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW' 5HY 3DFNHW3J 'E :RUN2UGHU&RQWUDFW[[2385,151,2402,226][16][B,I,][Times New Roman]] ([KLELW( (TXLSPHQW,QVWDOOHGE\&RQWUDFWRU 0F.LQVWU\DQGRXUVXEFRQWUDFWRUVVKDOOSURYLGHWKHIROORZLQJPDMRUHTXLSPHQWSHULGHQWLILHGHQHUJ\FRQVHUYDWLRQ PHDVXUH (&0 [[163,641,308,694][11][,I,][Times New Roman]](&0 [[307,641,330,694][11][,,][FEF976E1819]]± [[331,641,343,694][11][,I,][Times New Roman]] [[341,641,651,694][11][,I,][Times New Roman]]/LJKWLQJ5HWU RILW [[649,641,661,694][11][,I,][Times New Roman]] x 1HZKLJKED\GLPPDEOH/('IL[WXUHVLQWKH([KLELW+DOO$XGLWRULXP$UHQDDQG1RUWK/REE\ x 1HZGLPPDEOH/('WURXJKHUVDQGUHFHVVHGFDQVLQWKH5LYHUYLHZ6XLWHV x /('WXEHUHWURILWVDQGVFUHZLQ/('UHSODFHPHQWVIRUVKRSZDUHKRXVHFRUULGRUDQGRWKHU³EHKLQGWKHVFHQHV´ DUHDV x 1HZIXOO\LQWHJUDWHG/('IL[WXUHVIRURIILFHVFRQIHUHQFHURRPVDQGRWKHUPRUHYLVLEOHDUHDV x 1HZ/('IL[WXUHVDQGUHWURILWNLWVIRUH[WHULRUOLJKWLQJDVVRFLDWHGZLWK&LYLF&HQWHUHOHFWULFPHWHUV x &RQWUROV\VWHPUHWURILWVIRUWKH([KLELW+DOO$XGLWRULXPDQG1RUWK/REE\([LVWLQJLQIUDVWUXFWXUHZLOOEH OHYHUDJHGLQVRPHFDVHVDQGQHZXSJUDGHGXVHULQWHUIDFHVZLOOEHSURYLGHG x &RQWUROV\VWHPUHWURILWLQWKH$UHQD x &RQWUROV\VWHPUHWURILWLQWKH5LYHUYLHZ6XLWHVZLWKQHZXVHULQWHUIDFHVDQGLQGHSHQGHQWGLPPLQJFRQWURORI UHFHVVHGFDQVDQGWURXJKHUV x /LQHE\OLQHIL[WXUHUHSODFHPHQWVFKHGXOHLVSURYLGHGDV$WWDFKPHQW /LJKWLQJ/LQHE\/LQH [[163,1739,308,1792][11][,I,][Times New Roman]](&0 [[307,1739,330,1792][11][,,][FEF976E1819]]± [[331,1739,343,1792][11][,I,][Times New Roman]] [[339,1739,608,1792][11][,I,][Times New Roman]]$XGLR6\VWHPV [[608,1739,620,1792][11][,I,][Times New Roman]] x ([KLELW+DOO 'LJLWDO0L[LQJ&RQVROH FKDQQHO R &'86%1HWZRUN$XGLR3OD\HU R '63ZLWK,2 R $PSOLILHU&KDQQHOV#:SHUFKDQQHO R 7RXFK3DQHO UDFN R 0LFURSKRQH6WDWLRQ R 'HFRUD6W\OHDFWLYHORXGVSHDNHU R &XVWRPUDFNSDQHOIRUPLFURSKRQHVWDWLRQDQGVSHDNHU R $VVLVWHG/LVWHQLQJ6\VWHP)05DFNPRXQW7UDQVPLWWHU R $/65HPRWH$QWHQQD.LWV R $/60XOWLFKDQQHOUHFHLYHUV R $/65HFKDUJDEOHUHFHLYHUEDWWHULHV R :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW( 3DFNHW3J 'E $/6+HDGVHWV R $/6+HDGVHWVDQLW\FRYHUV SDFNV R $/6,QGXFWLRQQHFNORRSV R $/65HFHLYHUFKDUJLQJFDVHV R x $XGLWRULXP '63 'LJLWDO6LJQDO3URFHVVRU ZLWK,2 R WRXFKSDQHO R DPSOLILHUFKDQQHOV#:SHUFKDQQHO R DPSOLILHUFKDQQHOV#:SHUFKDQQHO R GLJLDOPL[LQJFRQVROH FKDQQHO R &'86%1HWZRUNDXGLRSOD\HU R IRXUFKDQQHOZLUHOHVVUHFHLYHUV R %RG\SDFNWUDQVPLWWHUV R +DQGKHOGWUDQVPLWWHUV R ODSHOPLFURSKRQHV R UHPRWHDQWHQQDVIRUZLUHOHVV R DQWHQQDVSOLWWHU R DQWHQQDFDEOHV ¶HDFK R VSDFHUROOLQJUDFN R [[163,1955,308,2008][11][,I,][Times New Roman]](&0 [[307,1955,330,2008][11][,,][FEF976E1819]]± [[331,1955,343,2008][11][,I,][Times New Roman]] [[340,1955,733,2008][11][,I,][Times New Roman]]+9$&,PSURYHPHQWV [[733,1955,745,2008][11][,I,][Times New Roman]] x 1HZKSKLJKHIILFLHQF\PRWRUIRU$+86 x 1HZKSKLJKHIILFLHQF\PRWRUIRU$+86 'E x ''&FRQYHUVLRQRI H[KDXVWIDQV x ''&FRQYHUVLRQRI SQHXPDWLFVPRNHGDPSHUV x QHZ´IODQJHGKHDWLQJYDOYHVLQ$UHQDSHQWKRXVH x ´IODQJHGFRROLQJYDOYHVLQ$UHQDSHQWKRXVH x ´VWHDPYDOYHVDWERLOHUURRPVWHDPFRQYHUWHU x ´137KHDWLQJYDOYHVRQ6 x ´VWHDPYDOYHVRQ6 6 'E [[947,362,1603,414][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN [[1604,362,1616,414][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW( 3DFNHW3J 3DFNHW3J 'E [[166,133,243,151][16][B,I,][Times New Roman]] [[243,133,320,151][16][B,,][Times New Roman]] [[320,133,397,151][16][B,,][Times New Roman]] :RUN2UGHU&RQWUDFW ([KLELW)&RQVWUXFWLRQDQG,QVWDOODWLRQ6FKHGXOH 0F.LQVWU\&R//& ± &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU ) ([KLELW *(63:RUN2UGHU&RQWUDFW :2& 3DFNHW3J 'E [[472,1309,525,1322][11][B,I,][Times New Roman]] [[472,1322,525,1979][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 0F.LQVWU\&R//& ± &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU ) ([KLELW *(63:RUN2UGHU&RQWUDFW :2& 'E :RUN2UGHU&RQWUDFW[[2385,151,2402,226][16][B,I,][Times New Roman]] ([KLELW* 6\VWHP6WDUWXSDQG&RPPLVVLRQLQJ3ODQ *(1(5$/ 6800$5< [[165,753,377,806][11][,I,][Times New Roman]]6FRSH [[378,753,390,806][11][,I,][Times New Roman]] D&RPPLVVLRQLQJUHTXLUHPHQWVFRPPRQWRDOOVHFWLRQV E6\VWHPVDQGHTXLSPHQWIXQFWLRQDOSHUIRUPDQFHWHVWLQJ F9DOLGDWLRQRISURSHUDQGWKRURXJKLQVWDOODWLRQRIV\VWHPVDQGHTXLSPHQW G(TXLSPHQWSHUIRUPDQFHYHULILFDWLRQ H'RFXPHQWDWLRQRIWHVWVSURFHGXUHVDQGREVHUYDWLRQV I5HYLHZRI2ZQHU7UDLQLQJDJHQGD [[165,1172,646,1225][11][,I,][Times New Roman]]*HQHUDO'HVFULSWLRQ [[646,1172,658,1225][11][,I,][Times New Roman]] D&RPPLVVLRQLQJLVWKHSURFHVVRIYHULI\LQJDQGYDOLGDWLQJWKDWDOOEXLOGLQJV\VWHPVDUHLQVWDOOHGDQGSHUIRUP LQWHUDFWLYHO\DFFRUGLQJWRWKHGHVLJQLQWHQW WKDWV\VWHPVDUHHIILFLHQWDQGFRVWHIIHFWLYHWRRSHUDWHDQGPHHWWKH 2ZQHU¶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¶VUHVSRQVLELOLWLHVUHODWLYHWRWKH &RPPLVVLRQLQJSURFHVV,WH[SDQGVRQWKH&RPPLVVLRQLQJ3ODQZKLFKFRYHUVWKHUROHVDQGUHVSRQVLELOLWLHVRI DOO3DUWLHV,WDOVRLQGLFDWHVWKHGHWDLOVRIWKH)XQFWLRQDO3HUIRUPDQFH7HVWLQJLQZKLFKWKH&RQWUDFWRUPXVW SDUWLFLSDWH [[165,2085,256,2138][11][,I,][Times New Roman]] [[257,2085,269,2138][11][,I,][Times New Roman]] [[315,2085,1040,2138][11][,I,][Times New Roman]]&RPPLVVLRQLQJ6HTXHQFHDQG6FKHGXOH [[1042,2085,1054,2138][11][,I,][Times New Roman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±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imes New Roman]] [[257,2655,269,2708][11][,I,][Times New Roman]] [[313,2655,863,2708][11][,I,][Times New Roman]]5HODWHG:RUNDQG'RFXPHQWV [[864,2655,876,2708][11 ][,I,][Times New Roman]] D&RPPLVVLRQLQJ3ODQ 7KH&RPPLVVLRQLQJ3ODQLVDSDUWRIWKH&RQWUDFW'RFXPHQWVDQGRXWOLQHVPDQ\RI UHVSRQVLELOLWLHVSURFHGXUHVDQGWDVNVWKURXJKRXWWKH&RPPLVVLRQLQJSURFHVV,WDOVRGHVFULEHVWKH)XQFWLRQDO 3HUIRUPDQFH7HVWVWKDWZLOOEHSHUIRUPHGGXULQJWKH$FFHSWDQFH3KDVH7KH&RQWUDFWRUPXVWKDYHDQ XQGHUVWDQGLQJRIFRPPLVVLRQLQJSURFHVVDQGWKH&RQWUDFWRUUHTXLUHPHQWVZLWKLQWKHSODQ E,QGLYLGXDO6SHFLILFDWLRQ6HFWLRQV ,QGLYLGXDOVHFWLRQVVWLSXODWHLQVWDOODWLRQVWDUWXSZDUUDQW\RSHUDWLRQDQG :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E PDLQWHQDQFHGRFXPHQWDWLRQDQGWUDLQLQJUHTXLUHPHQWVIRUWKHV\VWHPRUGHYLFHVSHFLILHGLQWKH6HFWLRQ F5HIHUHQFH6WDQGDUGV $6+5$(*XLGHOLQH³7KH&RPPLVVLRQLQJ3URFHVV $6+5$(*XLGHOLQH *XLGHOLQHIRU&RPPLVVLRQLQJ+9$&6\VWHPV $6+5$(*XLGHOLQH ³3UHSDUDWLRQRI2SHUDWLQJDQG0DLQWHQDQFH'RFXPHQWDWLRQIRU%XLOGLQJ 6\VWHPV %&$±%XLOGLQJ&RPPLVVLRQLQJ$VVRFLDWLRQ 1(%%3URFHGXUDO6WDQGDUGVIRU%XLOGLQJ6\VWHPV&RPPLVVLRQLQJ 1(7$$767HVWLQJ6WDQGDUGV 6\VWHP %$6 7KHFRPSXWHUEDVHGKHDWLQJYHQWLODWLRQDQGDLUFRQGLWLRQLQJ +9$& FRQWURORUDXWRPDWLRQV\VWHP H&RPPLVVLRQLQJ$XWKRULW\ &$RU&[$ 7KH3DUW\UHWDLQHGE\WKH2ZQHUZKRZLOORYHUVHHWKH&RPPLVVLRQLQJ SURFHVVDVZHOODVGHYHORSDQGVWLSXODWHPDQ\RIWKH&RPPLVVLRQLQJUHTXLUHPHQWV7KH\ZLOODOVRPDQDJHWKH &RPPLVVLRQLQJSURFHVVDQGHQVXUHDQGYDOLGDWHWKDWV\VWHPVDQGHTXLSPHQWDUHGHVLJQHGLQVWDOOHGDQGWHVWHG WRPHHWWKH2ZQHU¶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¶V&RPPLVVLRQLQJ&RRU GLQDWRU &0&[& @>WKH2ZQHU¶V &RPPLVVLRQLQJ&RRUGLQDWRU 22&[& @DQGWKH*HQHUDO&RQWUDFWRU¶V&RPPLVVLRQLQJ&RRUGLQDWRU *&&[& 2QDQ\JLYHQV\VWHPWKH&RPPLVVLRQLQJ7HDPZLOODOVRLQFOXGHWKH&RPPLVVLRQLQJ&RRUGLQDWRUIRUWKH &RQWUDFWRU V UHVSRQVLEOHIRUWKHV\VWHPRUHTXLSPHQW :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E L&RQWUDFWRU $VXVHGKHUHLQµ&RQWUDFWRU¶LVDJHQHUDOUHIHUHQFHWRWKHLQVWDOOLQJ3DUW\DQGFDQWKHUHIRUHUHIHUWR WKH*HQHUDO&RQWUDFWRUVXEFRQWUDFWRUVRUYHQGRUVDVLQIHUUHGE\LWVXVDJH M&RQVWUXFWLRQ0DQDJHU &0 7KH3DUW\UHWDLQHGE\WKH2ZQHUWRUHSUHVHQWWKH2ZQHUDQGPDNHGHFLVLRQVRQ WKH2ZQHU¶VEHKDOIWKURXJKRXWWKHGHVLJQDQGFRQVWUXFWLRQSURFHVV N&RQVWUXFWLRQ3KDVH 3KDVHRIWKHSURMHFWGXULQJZKLFKWKHIDFLOLW\LVFRQVWUXFWHGDQGRUV\VWHPVDQGHTXLSPHQW DUHLQVWDOOHGDQGVWDUWHG&RQWUDFWRUDQGVXEFRQWUDFWRUVFRPSOHWHWKHLQVWDOODWLRQFRPSOHWHVWDUWXS GRFXPHQWDWLRQVXEPLWRSHUDWLRQDQGPDLQWHQDQFHLQIRUPDWLRQHVWDEOLVKWUHQGVDQGSHUIRUPDQ\RWKHU DSSOLFDEOHUHTXLUHPHQWVWRJHWV\VWHPVVWDUWHG&RQWUDFWRUDQG9HQGRUVPD\DOVRFRQGXFWHTXLSPHQWVSHFLILF WUDLQLQJ7KH&RQVWUXFWLRQ3KDVHZLOOJHQHUDOO\HQGXSRQFRPSOHWHGVWDUWXSDQGWHVWDGMXVWDQGEDODQFHRI V\VWHPVDQGHTXLSPHQW O'HILFLHQF\ $FRQGLWLRQLQWKHLQVWDOODWLRQRUIXQFWLRQRIDFRPSRQHQWSLHFHRIHTXLSPHQWRUV\VWHPWKDWLVQRW LQFRPSOLDQFHZLWKWKH&RQWUDFW'RFXPHQWV WKDWLVGRHVQRWSHUIRUPSURSHUO\RULVQRWFRPSO\LQJZLWKWKH GHVLJQLQWHQW P)DFWRU\$XWKRUL]HG5HSUHVHQWDWLYH $QLQGLYLGXDOIXOO\WUDLQHGRQWKHHTXLSPHQWDQGFHUWLILHGE\WKH PDQXIDFWXUHUWRSHUIRUPWKHUHVSHFWLYHWDVN Q)DFWRU\7HVWLQJ 7HVWLQJRIHTXLSPHQWRIIVLWHDWWKHPDQXIDFWXUHU¶VIDFLOLW\7KHWHVWLQJPD\EHZLWQHVVHGE\ WKHPHPEHUVRIWKHSURMHFWWHDP R)XQFWLRQDO3HUIRUPDQFH7HVWLQJ )37 7KHGHWDLOHGDQGWKRURXJKWHVWLQJRIEXLOGLQJV\VWHPVDQGWKHLU LQWHUDFWLRQVZLWKEXLOGLQJFRPSRQHQWVDQGRWKHUEXLOGLQJV\VWHPV S,$4 ,QGRRU$LU4XDOLW\ T2SHUDWLRQDQG0DLQWHQDQFH 2 0 'RFXPHQWDWLRQ 7KLVUHIHUVWR&RQWUDFWRUGHYHORSHGGRFXPHQWDWLRQ GHVLJQHGWRDGGUHVVWKHQHHGVRIIDFLOLWLHVSHUVRQQHODQGFXVWRPL]HGIRUWKHFRQWH[WRIWKHVSHFLILFIDFLOLW\DQG LQVWDOODWLRQ7KHIRXQGDWLRQRI2 0'RFXPHQWDWLRQLVPDQXIDFWXUHU¶VOLWHUDWXUH LQFOXGLQJµ2 00DQXDOV¶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imes New Roman]] [[257,2933,270,2986][11][,I,][Arial]] [[315,2933,986,2986][11][,I,][Times New Roman]]&RRUGLQDWLRQ0DQDJHPHQW3URWRFRO [[985,2933,997,2986][11][,I ,][Times New Roman]] D&RRUGLQDWLRQUHVSRQVLELOLWLHVDQGPDQDJHPHQWSURWRFROVUHODWLYHWR&RPPLVVLRQLQJDUHLQLWLDOO\GHILQHGEHORZ :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E RFFXUULQJDQGFRRUGLQDWHWKHVHZLWKZLWQHVVLQJ3DUWLHV 7KH&[$DQG&[7PHPEHUVPD\ZLWQHVV)DFWRU\6WDUW8SVDWWKHLUGLVFUHWLRQ$VSHFWVRI)37 DFFRPSOLVKHGGXULQJWKH)DFWRU\6WDUW8SVPD\EHDFFRPSOLVKHGDQGDSSURYHGE\WKH&[$LIWKH\PHHWWKH LQWHQWRIWKH)37 ,QGHSHQGHQW7HVWLQJ$JHQFLHV )RUV\VWHPVZKHUHFRQWUDFWRU¶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imes New Roman]] [[257,1346,270,1399][11][,I,][Arial]] [[315,1346,820,1399][11][,I,][Times New Roman]]&RQWUDFWRU5HVSRQVLELOLWLHV [[821,1346,833,1399][11][,I,][Ti mes New Roman]] D&RQVWUXFWLRQ3KDVH 7KHIROORZLQJGHOLQHDWHVWKHFRPPLVVLRQLQJUHODWHGUHVSRQVLELOLWLHVRIWKH&RQWUDFWRU DQG WKHLUVXEFRQWUDFWRUV GXULQJWKH&RQVWUXFWLRQ3KDVH ,QFOXGH&RPPLVVLRQLQJUHTXLUHPHQWVLQSULFHDQGSODQIRUZRUN 'HVLJQDWHD&[&IURPHDFKPDMRUVXEFRQWUDFWRUZLWKDFWLYLWLHVUHODWHGWRFRPPLVVLRQLQJ7KHVH&[&¶VDUH WREHWKHSULPDU\FRQWDFWVIRU&RPPLVVLRQLQJDFWLYLWLHV $WWHQG&RQVWUXFWLRQ3KDVH&RPPLVVLRQLQJ0HHWLQJ7KH&[&DQG3URMHFW0DQDJHUIURPHDFKPDMRU VXEFRQWUDFWRUVKDOODWWHQGDWDPLQLPXP 7KH&[&VKDOODWWHQGDOO&RPPLVVLRQLQJSURJUHVVPHHWLQJVXQOHVVRWKHUZLVHDJUHHGWRE\WKH&[$ 5HPHG\DQ\GHILFLHQFLHVLGHQWLILHGWKURXJKRXWFRQVWUXFWLRQ 6XEPLW6WDUW8S3URFHGXUHVDORQJZLWKWKHPDQXIDF WXUHU¶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imes New Roman]] [[257,1995,269,2048][11][,I,][Times New Roman]] [[315,1995,626,2048][11][,I,][Times New Roman]]2EVHUYDWLRQ/RJ [[625,1995,637,2048][11][,I,][Time s New Roman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¶VSULQWHGLQVWDOODWLRQDQGGHWDLOHGVWDUWXSSURFHGXUHVIXOOVHTXHQFHVRI RSHUDWLRQ2 0GDWDSHUIRUPDQFHGDWDDQ\SHUIRUPDQFHWHVWSURFHGXUHVFRQWUROGUDZLQJVDQGGHWDLOVRI RZQHUFRQWUDFWHGWHVWV,QDGGLWLRQWKHLQVWDOODWLRQDQGFKHFNRXWPDWHULDOVWKDWDUHDFWXDOO\VKLSSHGLQVLGHWKH :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±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¶VUHVSRQVLELOLW\IRUGHYLDWLRQVLQVXEPLWWDOVIURPUHTXLUHPHQWVRIWKH&RQWUDFW'RFXPHQWVLVQRW UHOLHYHGE\WKH&RPPLVVLRQLQJ$XWKRULW\¶VUHYLHZ 352'8&76 ,167580(17$7,21 D$OOWHVWLQVWUXPHQWVGHVFULEHGLQWKLVVHFWLRQVKDOOEHDFFHSWDEOHIRUDQ\SRUWLRQRIWKHFRPPLVVLRQLQJSURFHVV KHUHLQGHVFULEHG$OOLQVWUXPHQWVVKDOOFRQIRUPWRWKHVWDQGDUGVVSHFLILHGLQWK HPRVWUHFHQWHGLWLRQRI³1(%% 3URFHGXUDO6WDQGDUGVIRU7HVWLQJ$GMXVWLQJDQG%DODQFLQJRI(QYLURQPHQWDO6\VWHPV´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imes New Roman]] [[257,355,269,408][11][,I,][Times New Roman]] [[313,355,559,408][11][,I,][Times New Roman]]3UHUHTXLVLWHV [[560,355,572,408][11][,I,][Times New Roman]] D$OOHTXLSPHQWFRPSRQHQWVDQGGHYLFHVDSSOLFDEOHWRWKH3UH6WDUW8SPXVWEHLQVWDOOHGDQGWKH3UH6WDUW8S PXVWEHGRFXPHQWHGDQGDSSURYHG7KLVLQFOXGHVLQVWDOODWLRQLGHQWLILFDWLRQODEHOLQJLQVXODWLRQDQGDOORWKHU UHTXLUHPHQWVIRUSODFLQJV\VWHPVLQWRG\QDPLFRSHUDWLRQ [[165,616,256,669][11][,I,][Times New Roman]] [[257,616,269,669][11][,I,][Times New Roman]] [[315,616,660,669][11][,I,][Times New Roman]]&RPPRQ(OHPHQWV [[660,616,672,669][11][,I,][Times New Roman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imes New Roman]] [[257,1263,269,1316][11][,I,][Times New Roman]] [[313,1263,559,1316][11][,I,][Times New Roman]]3UHUHTXLVLWHV [[560,1263,572,1316][11][,I,][Times New Roman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imes New Roman]] [[257,2195,269,2248][11][,I,][Times New Roman]] [[315,2195,660,2248][11][,I,][Times New Roman]]&RPPRQ(OHPHQWV [[660,2195,672,2248][11][,I,][Time s New Roman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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E J6\VWHPDQGHTXLSPHQWFRQILJXUDWLRQVVKDOOEHFRPSDUHGDJDLQVWWKHFRQWUDFWGRFXPHQWV K9HULI\0RGHV VXFKDVKHDWLQJDQGFRROLQJ DUHFRRUGLQDWHGDQGGRQRWRYHUODSRUµILJKW¶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imes New Roman]] [[257,747,269,800][11][,I,][Times New Roman]] [[315,747,405,800][11][,I,][Times New Roman]]6WDUW [[405,747,420,800][11][,I,][Times New Roman]] [[420,747,680,800][11][,I,][Times New Roman]]8S3URFHGXUH [[681,747,693,800][11][,I,][Times New Roman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¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E 7(67$'-867$1'%$/$1&( [[165,252,256,305][11][,I,][Times New Roman]] [[257,252,269,305][11][,I,][Times New Roman]] [[315,252,699,305][11][,I,][Times New Roman]]7HVW$GMXVWDQG%DO [[699,252,784,305][11][,I,][Times New Roman]]DQFH [[785,252,797,305][11][,I,][Times New Roman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imes New Roman]] [[257,974,269,1027][11][,I,][Times New Roman]] [[313,974,914,1027][11][,I,][Times New Roman]])XQFWLRQDO3HUIRUPDQFH7HVWLQJ [[913,974,925,1027][11 ][,I,][Times New Roman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¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E 5HTXLUHGSDUWLFLSDWLQJ3DUWLHVVKDOOEHLQGLFDWHGLQWKHLQGLYLGXDO)377\SLFDOO\PXOWLSOH3DUWLHVDUH UHTXLUHGIRUDQ\JLYHQWHVW\HWSDUWLFLSDWLRQIRUDQ\JLYHQ3DUW\LVRQO\UHTXLUHGIRUWKHUHVSHFWLYHSRUWLRQRI WKHWHVWIRUZKLFKWKH3DUW\LVUHVSRQVLEOH )UHTXHQWO\RQPXOWLSOHVDPSOHVZKHUHDJLYHQSDUW\GRHVQRWGLUHFWO\SHUIRUPWKHWHVWWKHSDUWLFLSDWLRQRI WKDWSDUW\ZLOORQO\EHUHTXLUHGIRUDQLQLWLDOTXDQWLW\RIV\VWHPVHTXLSPHQW:KHQHYHUSUDFWLFDODQGDWWKH GLVFUHWLRQRIWKH&[$ZLWKWKHFRQWUDFWRU¶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µ3DVV¶RUµ)DLO¶WKHWHVWLQJDQGUHFRUGWKHGDWHDQGWLPHRIWKHWHVW 'HILFLHQFLHVVKDOOFOHDUO\EHLQGLFDWHGZKHQWKHWHVWLVIDLOHG:KHQDOOUHODWHGWHVWLQJLVFRPSOHWHGVXFFHVVIXOO\ &[$VKDOOUHFRPPHQGDFFHSWDQFHRIWKHV\VWHPRUFRPSRQHQW,QWKHFDVHRIVSHFLDOL]HGWHVWLQJZLWQHVV DW &[$¶VGLVFUHWLRQ DQGUHYLHZWKHWHVWLQJUHSRUWVSUHSDUHGE\WKH&RQWUDFWRU [[165,1768,256,1821][11][,I,][Times New Roman]] [[257,1768,269,1821][11][,I,][Times New Roman]] [[313,1768,618,1821][11][,I,][Times New Roman]])37$FFHSWDQFH [[619,1768,631,1821][11][,I,][Times New Roman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imes New Roman]] [[257,2375,269,2428][11][,I,][Times New Roman]] [[313,2375,634,2428][11][,I,][Times New Roman]])37'HILFLHQFLHV [[635,2375,647,2428][11][,I,][Tim es New Roman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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E &RQWUDFWRU D :KHQWKHUHLVQRGLVSXWHRQWKHGHILFLHQF\DQGWKH&RQWUDFWRUDFFHSWVUHVSRQVLELOLW\WRFRUUHFWLW L7KH&[$VKDOOGRFXPHQWWKHGHILFLHQF\DORQJZLWKWKH&RQW UDFWRU¶VUHVSRQVHDQG LQWHQWLRQVDQGWKH\JRRQWRDQRWKHUWHVWRUVHTXHQFH$FRS\HPDLORIWKHGHILFLHQF\VKDOO EHJHQHUDWHGDQGSURYLGHGWRWKH&RQWUDFWRUDQG&[$7KH&RQWUDFWRUFRUUHFWVWKH GHILFLHQF\FRPSOHWHVWKH$FWLRQ,WHPUHVSRQVHFHUWLI\LQJWKDWWKHLVVXHLVUHVROYHGDQGRU WKHHTXLSPHQWLVUHDG\WREHUHWHVWHGDQGVHQGVLWEDFNWRWKH&[$ LL7KH&[$UHVFKHGXOHVWKHWHVWDQGWKHWHVWLVUHSHDWHG E ,IWKHUHLVDGLVSXWHDERXWDGHILFLHQF\UHJDUGLQJZKHWKHULWLVDGHILFLHQF\DQGRUZKRLVUHVSRQVLEOH L7KHGHILFLHQF\VKDOOEHGRFXPHQWHGDVDQ2EVHUYDWLRQ/RJ,WHPZLWKWKH&RQWUDFWRU¶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¶VFRVWRIWKDWVDPSOHWHVWDQGUHGRWKH VWDUWXSDQG7$%IRUWKHDSSOLFDEOHGHYLFHVV\VWHPV $OOZRUNQHFHVVLWDWHGE\VDPSOHIDLOXUHVVKDOOEHDWQRFRVWWRWKH2ZQHU F)DLOXUH'XHWR0DQXIDFWXUHU¶V'HIHFWV ,IRILGHQWLFDOSLHFHVRIHTXLSPHQWIDLOWRSHUIRUPWRWKH&RQWUDFW 'RFXPHQWV PHFKDQLFDOO\RUVXEVWDQWLYHO\ GXHWRPDQXIDFWXULQJGHIHFWDOOLGHQWLFDOXQLWVPD\EHFRQVLGHUHG XQDFFHSWDEOHE\WKH&0 )RUWKHSXUSRVHVRIGHILQLQJµLGHQWLFDOHTXLSPHQW¶IRUWKLV6HFWLRQVL]HRUFDSDFLW\ DORQHGRHVQRWFRQVWLWXWHDGLIIHUHQFH ,QFDVHRIIDLOXUHGXHWRPDQXIDFWXUHU¶VGHIHFWVWKH&RQWUDFWRUVK DOO SURYLGHWKH2ZQHUZLWKWKHIROORZLQJ 0DQXIDFWXUHU¶VUHVSRQVHLQZULWLQJDVWRWKHFDXVHRIWKHIDLOXUHDQGSURSRVHGUHVROXWLRQ 0DQXIDFWXUHUVKDOOLPSOHPHQWWKHLUSURSRVHGUHVROXWLRQRQDUHSUHVHQWDWLYHVDPSOHRIWKHSURGXFW 7KH&0ZLOOGHWHUPLQHZKHWKHUDUHSODFHPHQWRIDOOLGHQWLFDOXQLWVRUDUHSDLULVDFFHSWDEOH 8SRQDFFHSWDQFHWKHPDQXIDFWXUHUVKDOOUHSODFHRUUHSDLUDOOLGHQWLFDOLWHPVDWWKHLUH[SHQVHDQGVKDOO H[WHQGWKHZDUUDQW\DFFRUGLQJO\ LIWKHRULJLQDOHTXLSPHQWZDUUDQW\KDGEHJXQ :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E 0DQXIDFWXUHUVKDOOSD\WKHFRVWVRIDOOUHWHVWLQJQHFHVVLWDWHGE\WKHIDLOXUH &/26(287 [[165,450,256,503][11][,I,][Times New Roman]] [[257,450,269,503][11][,I,][Times New Roman]] [[315,450,511,503][11][,I,][Times New Roman]]&;5HSRUW [[510,450,522,503][11][,I,][Times New Roman]] D$ILQDOVXPPDU\UHSRUW DERXWIRXUWRVL[SDJHVQRWLQFOXGLQJEDFNXSGRFXPHQWDWLRQ E\WKH&[$ZLOOEH SURYLGHGWRWKH&0IRFXVLQJRQHYDOXDWLQJFRPPLVVLRQLQJSURFHVVLVVXHVDQGLGHQWLI\LQJDUHDVZKHUHWKH SURFHVVFRXOGEHLPSURYHG$OODFTXLUHGGRFXPHQWDWLRQORJVPLQXWHVUHSRUWVGHILFLHQF\OLVWV FRPPXQLFDWLRQVILQGLQJVXQUHVROYHGLVVXHVHWFZLOOEHFRPSLOHGLQDSSHQGLFHVDQGSURYLGHGZLWKWKH VXPPDU\UHSRUW3UH6WDUW8SYHULILFDWLRQ6WDUW8SFKHFNOLVWV7$%IXQFWLRQDOWHVWVDQGPRQLWRULQJUHSRUWVZLOO QRWEHSDUWRIWKHILQDOUHSRUWEXWZLOOEHVWRUHGLQWKH&RPPLVVLRQLQJ5HFRUGLQWKH2 0PDQXDOV [[165,869,256,922][11][,I,][Times New Roman]] [[257,869,269,922][11][,I,][Times New Roman]] [[311,869,525,922][11][,I,][Times New Roman]]$FFHSWDQFH [[526,869,538,922][11][,I,][Times New Roman]] D7KH&[$QRWHVHDFKVDWLVIDFWRULO\GHPRQVWUDWHGIXQFWLRQRQWKHWHVWIRUP)RUPDODSSURYDORIWKHIXQFWLRQDOWHVW LVPDGHODWHUDIWHUUHYLHZE\WKH&[$DQGE\WKH&0LIQHFHVVDU\7KH&[$UHFRPPHQGVDFFHSWDQFHRIHDFK WHVWWRWKH&0XVLQJDVWDQGDUGIRUP7KH&0JLYHVILQDODSSURYDORQHDFKWHVWXVLQJWKHVDPHIRUPSURYLGLQJD VLJQHGFRS\WRWKH&[$DQGWKH&RQWUDFWRU [[165,1182,256,1235][11][,I,][Times New Roman]] [[257,1182,269,1235][11][,I,][Times New Roman]] [[315,1182,476,1235][11][,I,][Times New Roman]]7UDLQLQJ [[476,1182,488,1235][11][,I,][Times New Roman]] D7KH&0VKDOOEHUHVSRQVLEOHIRUWUDLQLQJFRRUGLQDWLRQDQGVFKHGXOLQJDQGXOWLPDWHO\IRUHQVXULQJWKDWWUDLQLQJLV FRPSOHWHG E7KH&[$VKDOOEHUHVSRQVLEOHIRURYHUVHHLQJDQGDSSURYLQJWKHFRQWHQWDQGDGHTXDF\RIWKHWUDLQLQJRI2ZQHU SHUVRQQHOIRUFRPPLVVLRQHGHTXLSPHQW 23(5$7,21$1'0$,17(1$1&( [[165,1640,256,1693][11][,I,][Times New Roman]] [[257,1640,269,1693][11][,I,][Times New Roman]] [[315,1640,796,1693][11][,I,][Times New Roman]]2 0DQG6\VWHP0DQXDO [[795,1640,807,1693][11][,I, ][Times New Roman]] D3ULRUWRVXEVWDQWLDOFRPSOHWLRQWKH&[$VKDOOUHYLHZWKH2 0PDQXDOVGRFXPHQWDWLRQDQGUHGOLQHDVEXLOGV IRUV\VWHPVWKDWZHUHFRPPLVVLRQHGWRYHULI\FRPSOLDQFHZLWKWKH6SHFLILFDWLRQV7KH&[$ZLOOFRPPXQLFDWH GHILFLHQFLHVLQWKHPDQXDOVWRWKH&0RU$(DVUHTXHVWHG8SRQDVXFFHVVIXOUHYLHZRIWKHFRUUHFWLRQVWKH &[$UHFRPPHQGVDSSURYDODQGDFFHSWDQFHRIWKHVHVHFWLRQVRIWKH2 0PDQXDOVWRWKH&0RU$(7KH&[$ DOVRUHYLHZVHDFKHTXLSPHQWZDUUDQW\DQGYHULILHVWKDWDOOUHTXLUHPHQWVWRNHHSWKHZDUUDQW\YDOLGDUHFOHDUO\ VWDWHG7KLVZRUNGRHVQRWVXSHUVHGHWKH$(¶VUHYLHZRIWKH2 0PDQXDOVDFFRUGLQJWRWKH$(¶VFRQWUDFW [[165,2059,256,2112][11][,I,][Times New Roman]] [[257,2059,269,2112][11][,I,][Times New Roman]] [[315,2059,635,2112][11][,I,][Times New Roman]]:DUUDQW\5HYLHZ [[635,2059,647,2112][11][,I,][Time s New Roman]] D'XULQJWKHZDUUDQW\SHULRGVHDVRQDOWHVWLQJ WHVWVGHOD\HGXQWLOZHDWKHUFRQGLWLRQVDUHFORVHUWRWKHV\VWHP¶V GHVLJQ VKDOOEHFRPSOHWHGDVSDUWRIWKLVFRQWUDFW7KH&[$VKDOOFRRUGLQDWHWKLVDFWLYLW\7HVWVZLOOEH H[HFXWHGGRFXPHQWHGDQGGHILFLHQFLHVFRUUHFWHGE\WKHDSSURSULDWH6XEVZLWKIDFLOLWLHVVWDIIDQGWKH&[$ ZLWQHVVLQJ$Q\ILQDODGMXVWPHQWVWRWKH2 0PDQXDOVDQGDVEXLOGVGXHWRWKHWHVWLQJZLOOEHPDGH [[165,2364,177,2417][11][,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 'E [[947,309,1603,361][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN [[1604,309,1616,361][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW* 3DFNHW3J 3DFNHW3J 'E [[965,130,1018,143][11][,I,][Times New Roman]] [[166,133,243,151][16][B,I,][Times New Roman]] [[243,133,320,151][16][B,,][Times New Roman]] [[320,133,397,151][16][B,,][Times New Roman]] :RUN2UGHU&RQWUDFW([KLELW+ 6WDQGDUGVRI&RPIRUW >ŽĐŬŽƵƚ ŽŽůŝŶŐdĞŵƉĞƌĂƚƵƌĞƐ ϰϬϰϬϰϬϰϬϰϬ hŶŽĐĐ͘ ϵϬϵϬϵϬϵϬϵϬ KĐĐ͘ ϳϬϳϬϳϬϳϬϳϬ >ŽĐŬŽƵƚ EͬEͬEͬEͬEͬ ,ĞĂƚŝŶŐdĞŵƉĞƌĂƚƵƌĞƐ WZKWK^ hŶŽĐĐ͘ ϲϬϲϬϲϬϲϬϲϬ KĐĐ͘ ϲϴϲϴϲϴϲϴϲϴ ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ ĂLJƐ KĐĐ͘ ϭϬƉŵϭϬƉŵϭϬƉŵϭϬƉŵϭϬƉŵ ^ƚŽƉ KĐĐ͘ ^ƚĂƌƚ KĐĐ͘ ϲĂŵϲĂŵϲĂŵϲĂŵϲĂŵ >ŽĐŬŽƵƚ ^dEZ^K&KD&KZd EͬEͬEͬEͬEͬ ŽŽůŝŶŐdĞŵƉĞƌĂƚƵƌĞƐ hŶŽĐĐ͘ ϴϬϴϬϴϬϴϬϴϬ KĐĐ͘ ϳϬϳϬϳϬϳϬϳϬ >ŽĐŬŽƵƚ EͬEͬEͬEͬEͬ ,ĞĂƚŝŶŐdĞŵƉĞƌĂƚƵƌĞƐ y/^d/E' hŶŽĐĐ͘ ϲϱϲϱϲϱϲϱϲϱ 0F.LQVWU\&R//& KĐĐ͘ ϲϴϲϴϲϴϲϴϲϴ ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ^ƵŶͲ^Ăƚ ĂLJƐ KĐĐ͘ ± ϭϬƉŵϭϬƉŵϭϬƉŵϭϬƉŵϭϬƉŵ ^ƚŽƉ KĐĐ͘ &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU + ([KLELW ^ƚĂƌƚ KĐĐ͘ ϲĂŵϲĂŵϲĂŵϲĂŵϲĂŵ ZŝǀĞƌǀŝĞǁZŽŽŵƐ *(63:RUN2UGHU&RQWUDFW KĨĨŝĐĞƐͬ^ŚŽƉƐ ƌĞĂ^ĞƌǀĞĚ ƵĚŝƚŽƌŝƵŵ WƌŽũĞĐƚEĂŵĞ͗DĂLJŽŝǀŝĐĞŶƚĞƌ dž,Ăůů ƌĞŶĂ DĂLJŽŝǀŝĐĞŶƚĞƌDĂLJŽŝǀŝĐĞŶƚĞƌDĂLJŽŝǀŝĐĞŶƚĞƌDĂLJŽŝǀŝĐĞŶƚĞƌDĂLJŽŝǀŝĐĞŶƚĞƌ ƵŝůĚŝŶŐ ZĞǀ͘ϭͬϰͬϭϯ :2& 3DFNHW3J 'E [[396,1309,449,1322][11][B,I,][Times New Roman]] [[396,1322,449,1979][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 0F.LQVWU\&R//& ± &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU + ([KLELW *(63:RUN2UGHU&RQWUDFW :2& 'E :RUN2UGHU&RQWUDFW[[2385,151,2402,226][16][B,I,][Times New Roman]] ([KLELW, 7UDLQLQJE\&RQWUDFWRU 7KLV*XDUDQWHHG(QHUJ\6DYLQJV3URSRVDOLQFOXGHVWKHIROORZLQJWUDLQLQJDFWLYLWLHVSURYLGHGE\WKH&RQWUDFWRU x 7ZRKRXUWUDLQLQJVHVVLRQVWRIDPLOLDUL]HDSSRLQWHG&OLHQWVWDIIPHPEHU V ZLWKPDLQWHQDQFHWHFKQLTXHVRIDOO LQVWDOOHGPDWHULDOV x $GGLWLRQDOWUDLQLQJDVQHHGHGWRHQVXUHIDFLOLW\RSHUDWRUVDUHFRPIRUWDEOHZLWKWKHGDLO\RSHUDWLRQDQG PDLQWHQDQFHUHTXLUHPHQWVRIQHZO\LQVWDOOHGHTXLSPHQWDQGV\VWHPV [[165,880,177,933][11][,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW, 3DFNHW3J 'E [[947,457,1540,509][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEOD [[1541,457,1603,509][11][B,I,][Times New Roman]]QN [[1604,457,1616,509][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW, 3DFNHW3J 'E :RUN2UGHU&RQWUDFW[[2402,151,2419,226][16][B,I,][Times New Roman]] ([KLELW- 3URMHFW3UR)RUPD *XDUDQWHHG(QHUJ\6DYLQJV3URJUDP3URMHFW3UR)RUPD &LW\RI5RFKHVWHU0D\R&LYLF&HQWHU 237,21 3URMHFW,PSOHPHQWDWLRQ&RVW 'E [[947,381,1366,433][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDO [[1365,381,1604,433][11][B,I,][Times New Roman]]O\OHIWEODQN [[1604,381,1616,433][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW- 3DFNHW3J 'E :RUN2UGHU&RQWUDFW[[2385,151,2402,226][16][B,I,][Times New Roman]] ([KLELW. 5HEDWHV,QFHQWLYHVDQG*UDQWV 7KHIROORZLQJWDEOHVXPPDUL]HVWKHDSSURYHG(&0VDQGLQFOXGHVLPSOHPHQWDWLRQFRVWVDQQXDOFRVWVDYLQJVDQGUHEDWH SURJUDPHVWLPDWHV 6LPSOH ,PSOHPHQWHG (&0'HVFULSWLRQ8WLOLW\6DYLQJV2 06DYLQJV5HEDWHV3D\EDFN &RVW <HDUV (&0/,*+7,1*5(752),7 'E [[947,362,1229,414][11][B,I,][Times New Roman]] 7KLVSDJHLQWH [[1230,362,1603,414][11][B,I,][Times New Roman]]QWLRQDOO\OHIWEODQN [[1604,362,1616,414][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW. 3DFNHW3J 'E :RUN2UGHU&RQWUDFW[[2385,151,2402,226][16][B,I,][Times New Roman]] ([KLELW/ /HDVH3XUFKDVH$JUHHPHQW 7KHUHLVQRWKLUGSDUW\/HDVH3XUFKDVH$JUHHPHQWIRUWKHSURMHFW7KH&LW\RI5RFKHVWHULVLQWHUQDOO\ILQDQFLQJWKH *XDUDQWHHG(QHUJ\6DYLQJV3URJUDPSURMHFWIRUWKH5RFKHVWHU0D\R&LYLF&HQWHU7KHLQWHUQDOORDQKDVD\HDU UHSD\PHQWWHUP$OOUHIHUHQFHVLQWKLV:RUN2UGHU&RQWUDFWWRWKHWHUPRIWKH/HDVH3XUFKDVH$JUHHPHQWVKDOOHTXDO WKHWHUPRIWKHLQWHUQDOORDQ :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW/ 3DFNHW3J 'E [[1275,151,1287,203][11][B,I,][Times New Roman]] [[1275,203,1287,255][11][B,I,][Times New Roman]] [[947,256,1603,308][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN [[1604,256,1616,308][11][B,I,][Times New Roman]] :2&±&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW/ 3DFNHW3J 'E :RUN2UGHU&RQWUDFW ([KLELW0 &RQWUDFWRU¶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¶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±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW0 3DFNHW3J 'E [[947,457,1603,509][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN [[1604,457,1616,509][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW0 3DFNHW3J 'E :RUN2UGHU&RQWUDFW[[2385,151,2402,226][16][B,I,][Times New Roman]] ([KLELW1 ,QVWLWXWLRQ¶V0DLQWHQDQFH5HVSRQVLELOLWLHV 2ZQHU¶V0DLQWHQDQFH5HTXLUHPHQWV 7KH2ZQHU&OLHQWKHUHE\DJUHHVWRDVVXPHWKHIROORZLQJUHVSRQVLELOLWLHV 0DLQWHQDQFHDQGRU5HSODFHPHQWRI)DXOW\(TXLSPHQW x 7KH2ZQHU&OLHQWVKDOOSURSHUO\PDLQWDLQDOOHTXLSPHQWWKDWLVEHLQJUHSDLUHGUHSODFHGRUPRGLILHGDVDUHVXOW RIWKHZRUNLGHQWLILHGLQ([KLELW$RUWKDWZLOOKDYHDQLPSDFWRQWKH&RQWUDFWRU¶VDELOLW\WRPHHWWKH6DYLQJV *XDUDQWHH:KHQLWLVQHFHVVDU\WRUHSODFHWKHHTX LSPHQWWKDWDIIHFWVWKH&RQWUDFWRU¶VDELOLW\WRPHHWWKH 6DYLQJV*XDUDQWHHWKH2ZQHU&OLHQWVKDOOUHSODFHLWZLWKDQHTXLSPHQWRIDWOHDVWHTXDOHQHUJ\DQGRSHUDWLRQDO HIILFLHQFLHV x 8SRQUHFHLYLQJDZULWWHQQRWLFHIURPWKH&RQWUDFWRUGHVFULELQJDQ\RSHUDWLRQDORUPDLQWHQDQFHGHILFLHQF\WKH 2ZQHU&OLHQWVKDOOLPPHGLDWHO\PDNHDUUDQJHPHQWVWRUHPHG\WKHGHILFLHQF\2QFHWKHGHILFLHQF\LVFRUUHFWHG WKH2ZQHU&OLHQWVKDOOQRWLI\WKH&RQWUDFWRUWRSHUIRUPLQVSHFWLRQRQWKHUHPHGLDOLPSURYHPHQWV 1RWLILFDWLRQRI2SHUDWLRQDO,VVXHV7KH2ZQHU&OLHQWVKDOOSURPSWO\QRWLI\WKH&RQWUDFWRURIDQ\V\VWHPRU EXLOGLQJFKDQJHVZKLFKPD\LPSDFWWKH&RQWUDFWRU¶VDELOLW\WRPHHWWKH6DYLQJV*XDUDQWHH :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±0F.LQVWU\&R//& *(63:RUN2UGHU&RQWUDFW([KLELW1 3DFNHW3J 'E [[947,362,1603,414][11][B,I,][Times New Roman]] 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN [[1604,362,1616,414][11][B,I,][Times New Roman]] :2&&LW\RI5RFKHVWHU0D\R&LYLF&HQWHU±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ȡ $FDGHPLF6SHFLDOWLHV ,UZLQVWDQGDUGSODVWLFRQEDFNFRPSRQHQW ȡ $FDGHPLF6SHFLDOWLHV ,UZLQVWDQGDUGODPLQDWH 1HYDPDU 7; ȡ $QGHUVRQ/DGG /,6735,&( 'E +$/'(0$1+200(,1& ,QGXVWULDO%OYG0LQQHDSROLV01 7HO )D[ UD ȡ 6FKRRO(TXLSPHQW VXEFRQWUDFWIRUPRWKHUZLVHDFFHSWDEOHWR+DOGHPDQ+RPPH,QF ȡ 6WRUDJH6\VWHPV 7(506 1HW'D\V ȡ 7UDFNV ȡ$&&(37(' &RPSDQ\5(63(&7)8//< 7XUI)LHOGV 1DPH[[1537,2097,1779,2144][10][B,I,][Times New Roman]]+$/'(0$1 [[1776,2097,1790,2144][10][B,I,][Times New Roman]] [[1789,2097,2060,2144][10][B,I,][Times New Roman]]+200(,1& [[2060,2097,2071,2 145][10][,,][Times New Roman]] 'DWH%\ 3DXO'%HUJVWURP 7KH+DOGHPDQ +RPPH)DPLO\RI &RPSDQLHV 1RWH 7KLVTXRWDWLRQLVRIIHUHGIRUDFFHSWDQFHZLWKLQGD\VDQGLVVXEMHFWWRUHYLVLRQEH\RQGWKDWWLPH ȡ $FDGHPLF6SHFLDOWLHV ȡ $FDGHPLF6SHFLDOWLHV 7; ȡ $QGHUVRQ/DGG ȡ ,'($ (PSOR\HH2ZQHG ZZZKDOGHPDQKRPPHFRPZZZKKEHVWODEFRP $UNDQVDV±&RORUDGR±,GDKR±,OOLQRLV±,QGLDQD±,RZD±.DQVDV±0LFKLJDQ±0LQQHVRWD±0RQWDQD±1HEUDVND± 1HYDGD±1HZ0H[LFR±1RUWK'DNRWD±2NODKRPD±6RXWK'DNRWD±7H[DV±8WDK±:LVFRQVLQ±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¶VSD\PHQWERQGDSHUVRQDOJXDUDQWHHRUDFRPE LQDWLRQRIVDLGGRFXPHQWVDVDFRQGLWLRQRIFUHGLWDSSURYDO ȡ $WKOHWLF :RRG ,QVWDOODWLRQ )ORRULQJ 7KLVSURSRVDODVVXPHVXQORDGLQJDQGHOHYDWRUXVHVKDOOEHFRQGXFWHGGXULQJQRUPDOEXVLQHVVKRXUV7KLVSURSRVDOLVEDVHGRQFRPSOHWLQJWKHZRUNGXULQJQRUPDOEXVLQHVVKRXUV 2YHUWLPHHYHQLQJDQGZHHNHQGZRUNLVDYDLODEOHDWDGGLWLRQDOFKDUJH&XVWRPHUDJUHHVWRSURYLGH+DOGHPDQ+RPPH,QFZLWKVXIILFLHQWDQGWLPHO\XQORDGLQJIDFLOLWLHVGRFNDQG ȡ $WKOHWLF(TXLSPHQW HOHYDWRUDFFHVVDVQHHGHGDWQRDGGLWLRQDOFRVWWR+DOGHPDQ+RPPH,QF&XVWRPHUVKDOOSURYLGHWHPSRUDU\VHFXUHVWRUDJHIRUPDWHULDOVSULRUWRLQVWDOODWLRQ&XVWRPHUVKDOO SURYLGHDGHTXDWHHOHFWULFDOSRZHUOLJKWLQJZDWHUDQGUHVWURRPIDFLOLWLHVGXULQJLQVWDOODWLRQ&XVWRPHUVKDOOSURYLGHDUHDWKDWLVIUHHDQGFOHDUDQGSUHSDUHGIRULQVWDOODWLRQ ȡ $XGLWRULXP6HDWLQJ (QJLQHHULQJ ȡ %OHDFKHUV $OOHQJLQHHULQJSURSRVDOGUDZLQJVVSHFLILFDWLRQVVKDOOUHSUHVHQW+DOGHPDQ+RPPH,QF¶VLQYHVWPHQWLQHQJLQHHULQJVNLOODQGGHYHORSPHQWDQGUHPDLQWKHSURSHUW\RI+DOGHPDQ ȡ +RPPH,QF6XFKDUHVXEPLWWHGZLWKWKHXQGHUVWDQGLQJWKDWWKHLQIRUPDWLRQZLOOQRWEHGLVFORVHGRUXVHGLQDQ\ZD\GHWULPHQWDOWR+DOGHPDQ+RPPH,QF¶VLQWHUHVWV &DVHZRUN &KDQJHV ȡ &OHDQ5RRPV $Q\UHTXHVWVIRUFKDQJHVWRWKHVFRSHRIZRUNVKDOOEHPDGHLQZULWLQJZLWKVLJQHGDFFHSWDQFHE\DXWKRUL]HGSHUVRQQHOIURP+DOGHPDQ+RPPH,QFDQG&XVWRPHU ȡ 'LYLGHU:DOOV /LDELOLW\ ȡ +DOGHPDQ+RPPH,QFVKDOOQRWEHOLDEOHIRUGDPDJHVLQDQ\IRUPRUDQ\RWKHUFODLPDULVLQJRXWRIVWULNHVIORRGVILUHDFFLGHQWVRUDQ\RWKHUFDXVHVEH\RQGRXUFRQWURO /DERUDWRU\(TXLSPHQW +DOGHPDQ+RPPH,QFVKDOOQRWEHOLDEOHIRUOLTXLGDWHGFRQVHTXHQWLDORUDQ\RWKHUGDPDJHVRUSHQDOWLHVRIDQ\NLQGIRUGHOD\VLQFRPSOHWLRQRIZRUN+DOGHPDQ+RPPH,QF ȡ /DERUDWRU\)XUQLWXUH LQGHPQLW\REOLJDWLRQVWRWKH&XVWRPHUDQGRZQHUDUHOLPLWHGWRWKHOLDELOLW\FUHDWHGE\WKHJURVVQHJOLJHQFHRI+DOGHPDQ+RPPH,QFLWVHPSOR\HHVRUVXEFRQWUDFWRUV,QWKH HYHQWWKHWHUPVRIWKLVDJUHHPHQWFRQIOLFWVZLWKWKH&XVWRPHU¶VSURSRVDORUSXUFKDVHRUGHUWKHSDUWLHVDFNQRZOHGJHDQGDJUHHWKHWHUPVRIWKLVDJUHHPHQWVKDOOFRQWURO ȡ /LEUDU\ )LOH6\VWHPV 3D\PHQW ȡ /RFNHUV 3D\PHQWLQIXOOZLOOEHGXHDQGSD\DEOHWKLUW\ GD\VIURPLQYRLFHGDWH&XVWRPHUDJUHHVWRSD\SURJUHVVELOOLQJLQYRLFHVGXULQJWKHFRXUVHRIWKHSURMHFWUHIOHFWLQJSDUWLDO ȡ VKLSPHQWRIPDWHULDODQGRUSDUWLDOFRPSOHWLRQRIODERUZRUNSHUIRUPHG:KHUHPDWHULDOVDUHVWRUHGRUVWDJHGWHPSRUDULO\DWWKHMREVLWHRULQRIIVLWHRUERQGHGZDUHKRXVHFXVWRPHU 6FKRRO(TXLSPHQW VKDOOSD\IRUPDWHULDOVDQGUHDVRQDEOHVWRUDJHFKDUJHV7KHIDLOXUHRIWKH&XVWRPHUWRPDNHSD\PHQWVZLWKLQFRQWUDFWWHUPVVKDOOHQWLWOH+DOGHPDQ+RPPH,QFLQDGGLWLRQWRDOO ȡ 6WRUDJH6\VWHPV RWKHUULJKWVWRVXVSHQGDOOZRUNDQGVKLSPHQWVDQGVKDOOIXUWKHUHQWLWOH+DOGHPDQ+RPPH,QFWRDQH[WHQVLRQRIWLPHRISHUIRUPDQFHRIWKHZRUN1RSD\PHQWVVKDOOEHZLWKKHOG IURPRUSHQDOWLHVDVVHVVHGDJDLQVW+DOGHPDQ+RPPH,QFGXHWRFDXVHVIRUZKLFK+DOGHPDQ+RPPH,QFLVQRWUHVSRQVLEOH ȡ 7UDFNV &XVWRPHUDJUHHVWKDWLIWKHELOOHGDPRXQWLVQRWSDLGZLWKLQWHUPVDVHUYLFHFKDUJHZLOOEHFKDUJHGRQWKHRYHUGXHEDODQFHDWDSHUFHQWDJHUDWHRI $118$/ ȡ 7XUI)LHOGV 3(5&(17$*(5$7( IRUDOODFFRXQWV,IWKHFXVWRPHUIDLOVWRSD\WKHHQWLUHXQSDLGEDODQFHRQWKHDFFRXQWZKHQGXH+DOGHPDQ+RPPH,QFPD\ZLWKRXWIXUWKHUQRWLFHRU GHPDQGH[HUFLVHDOOULJKWVDQGUHPHGLHVDYDLODEOHE\ODZIRUWKHFROOHFWLRQRIWKHEDODQFHGXHRQWKHDFFRXQW+DOGHPDQ+RPPH,QFUHVHUYHVWKHRSWLRQWRH[HUFLVHLWVOLHQ ULJKWVDWDOOWLPHVLQDFFRUGDQFHZLWKDSSOLFDEOHODZWRVHFXUHFROOHFWLRQRIDPRXQWVGXH$SSOLFDQWZLOOEHOLDEOHIRUDOOH[SHQVHVRIFROOHFWLRQZLWKRUZLWKRXWVXLWLQFOXGLQJDOOFRXUW FRVWVDQGUHDVRQDEOHDWWRUQH\¶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ȡ $FDGHPLF6SHFLDOWLHV 7+(0$18)$&785(5(;35(66:$55$17<,63529,'(',1/,(82)$//27+(5:$55$17,(6(;35(6625,03/,('7+(:$55$17,(62)0(5&+$17$%,/,7< ȡ $FDGHPLF6SHFLDOWLHV $1'),71(66)25$3$57,&8/$5385326($5(+(5(%<',6&/$,0('%<++$/ 7; ,QVXUDQFH +DOGHPDQ+RPPH,QFPDLQWDLQVLQVXUDQFHDQGZLOOSURYLGHFHUWLILFDWHVRILQVXUDQFHLIUHTXHVWHGRQFRYHUDJHDQGOLPLWVDVSURYLGHGE\LWVLQVXUDQFHSROLF\1RRWKHULQVXUDQFH ȡ $QGHUVRQ/DGG FRYHUDJHLVSURYLGHGLQFOXGLQJZDLYHURIVXEURJDWLRQRUDGGLWLRQDOQDPHGLQVXUHGV ȡ ,'($ &RGHV &XVWRPHUDUFKLWHFWDQGRUFRQWUDFWRUVKDOOEHUHVSRQVLEOHIRUDOOORFDOVWDWHDQGIHGHUDODJHQF\FRGHFRPSOLDQFHSHUPLWVIHHVGHVLJQHQJLQHHULQJDQGWHVWLQJ+DOGHPDQ +RPPH,QFGRHVQRWSURYLGHSURIHVVLRQDOOLDELOLW\LQVXUDQFHIRUDQ\RIWKHVHVHUYLFHV&RVWVIRUDQ\DQGDOOVXFKVHUYLFHVDUHQRWLQFOXGHGLQWKLVSURSRVDO 6LJQDWXUH 1DPH 'DWH 3OHDVH3ULQW (PSOR\HH2ZQHG ZZZKDOGHPDQKRPPHFRPZZZKKEHVWODEFRP $UNDQVDV±&RORUDGR±,GDKR±,OOLQRLV±,QGLDQD±,RZD±.DQVDV±0LFKLJDQ±0LQQHVRWD±0RQWDQD±1HEUDVND± 1HYDGD±1HZ0H[LFR±1RUWK'DNRWD±2NODKRPD±6RXWK'DNRWD±7H[DV±8WDK±:LVFRQVLQ±:\RPLQJ 3DFNHW3J 'F +$/'(0$1+200(,1& ,QGXVWULDO%OYG0LQQHDSROLV01 7HO )D[ 79,2132][10][B,I,][Times New Roman]]+$/'(0$1 [[1776,2085,1790,2132][10][B,I,][Times New Roman]] [[1789,2085,2060,2132][10][B,I,][Times New Roman]]+200(,1& [[2060,2085,2071,2133][10][,,][Times New Roman]] 'DWH%\ 3DXO'%HUJVWURP 7KH+DOGHPDQ +RPPH)DPLO\RI &RPSDQLHV 1RWH 7KLVTXRWDWLRQLVRIIHUHGIRUDFFHSWDQFHZLWKLQGD\VDQGLVVXEMHFWWRUHYLVLRQEH\RQGWKDWWLPH ȡ $FDGHPLF6SHFLDOWLHV ȡ $FDGHPLF6SHFLDOWLHV 7; ȡ $QGHUVRQ/DGG ȡ ,'($ (PSOR\HH2ZQHG ZZZKDOGHPDQKRPPHFRPZZZKKEHVWODEFRP $UNDQVDV±&RORUDGR±,GDKR±,OOLQRLV±,QGLDQD±,RZD±.DQVDV±0LFKLJDQ±0LQQHVRWD±0RQWDQD±1HEUDVND± 1HYDGD±1HZ0H[LFR±1RUWK'DNRWD±2NODKRPD±6RXWK'DNRWD±7H[DV±8WDK±:LVFRQVLQ±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¶VSD\PHQWERQGDSHUVRQDOJXDUDQWHHRUDFRPELQDWLRQRIVDLGGRFXPHQWVDVDFRQGLWLRQRIFUHGLWDSSURYDO ȡ $WKOHWLF :RRG ,QVWDOODWLRQ )ORRULQJ 7KLVSURSRVDODVVXPHVXQORDGLQJDQGHOHYDWRUXVHVKDOOEHFRQGXFWHGGXULQJQRUPDOEXVLQHVVKRXUV7KLVSURSRVDOLVEDVHGRQFRPSOHWLQJWKHZRUNGXULQJQRUPDOEXVLQHVVKRXUV 2YHUWLPHHYHQLQJDQGZHHNHQGZRUNLVDYDLODEOHDWDGGLWLRQDOFKDUJH&XVWRPHUDJUHHVWRSURYLGH+DOGHPDQ+RPPH,QFZLWKVXIILFLHQWDQGWLPHO\XQORDGLQJIDFLOLWLHVGRFNDQG ȡ $WKOHWLF(TXLSPHQW HOHYDWRUDFFHVVDVQHHGHGDWQRDGGLWLRQDOFRVWWR+DOGHPDQ+RPPH,QF&XVWRPHUVKDOOSURYLGHWHPSRUDU\VHFXUHVWRUDJHIRUPDWHULDOVSULRUWRLQVWDOODWLRQ&XVWRPHUVKDOO SURYLGHDGHTXDWHHOHFWULFDOSRZHUOLJKWLQJZDWHUDQGUHVWURRPIDFLOLWLHVGXULQJLQVWDOODWLRQ&XVWRPHUVKDOOSURYLGHDUHDWKDWLVIUHHDQGFOHDUDQGSUHSDUHGIRULQVWDOODWLRQ ȡ $XGLWRULXP6HDWLQJ (QJLQHHULQJ ȡ %OHDFKHUV $OOHQJLQHHULQJSURSRVDOGUDZLQJVVSHFLILFDWLRQVVKDOOUHSUHVHQW+DOGHPDQ+RPPH,QF¶VLQYHVWPHQWLQHQJLQHHULQJVNLOODQGGHYHORSPHQWDQGUHPDLQWKHSURSHUW\RI+DOGHPDQ ȡ +RPPH,QF6XFKDUHVXEPLWWHGZLWKWKHXQGHUVWDQGLQJWKDWWKHLQIRUPDWLRQZLOOQRWEHGLVFORVHGRUXVHGLQDQ\ZD\GHWULPHQWDOWR+DOGHPDQ+RPPH,QF¶VLQWHUHVWV &DVHZRUN &KDQJHV ȡ &OHDQ5RRPV $Q\UHTXHVWVIRUFKDQJHVWRWKHVFRSHRIZRUNVKDOOEHPDGHLQZULWLQJZLWKVLJQHGDFFHSWDQFHE\DXWKRUL]HGSHUVRQQHOIURP+DOGHPDQ+RPPH,QFDQG&XVWRPHU ȡ 'LYLGHU:DOOV /LDELOLW\ ȡ +DOGHPDQ+RPPH,QFVKDOOQRWEHOLDEOHIRUGDPDJHVLQDQ\IRUPRUDQ\RWKHUFODLPDULVLQJRXWRIVWULNHVIORRGVILUHDFFLGHQWVRUDQ\RWKHUFDXVHVEH\RQGRXUFRQWURO /DERUDWRU\(TXLSPHQW +DOGHPDQ+RPPH,QFVKDOOQRWEHOLDEOHIRUOLTXLGDWHGFRQVHTXHQWLDORUDQ\RWKHUGDPDJHVRUSHQDOWLHVRIDQ\NLQGIRUGHOD\VLQFRPSOHWLRQRIZRUN+DOGHPDQ+RPPH,QF ȡ /DERUDWRU\)XUQLWXUH LQGHPQLW\REOLJDWLRQVWRWKH&XVWRPHUDQGRZQHUDUHOLPLWHGWRWKHOLDELOLW\FUHDWHGE\WKHJURVVQHJOLJHQFHRI+DOGHPDQ+RPPH,QFLWVHPSOR\HHVRUVXEFRQWUDFWRUV,QWKH HYHQWWKHWHUPVRIWKLVDJU HHPHQWFRQIOLFWVZLWKWKH&XVWRPHU¶VSURSRVDORUSXUFKDVHRUGHUWKHSDUWLHVDFNQRZOHGJHDQGDJUHHWKHWHUPVRIWKLVDJUHHPHQWVKDOOFRQWURO ȡ /LEUDU\ )LOH6\VWHPV 3D\PHQW ȡ /RFNHUV 3D\PHQWLQIXOOZLOOEHGXHDQGSD\DEOHWKLUW\ GD\VIURPLQYRLFHGDWH&XVWRPHUDJUHHVWRSD\SURJUHVVELOOLQJLQYRLFHVGXULQJWKHFRXUVHRIWKHSURMHFWUHIOHFWLQJSDUWLDO ȡ VKLSPHQWRIPDWHULDODQGRUSDUWLDOFRPSOHWLRQRIODERUZRUNSHUIRUPHG:KHUHPDWHULDOVDUHVWRUHGRUVWDJHGWHPSRUDULO\DWWKHMREVLWHRULQRIIVLWHRUERQGHGZDUHKRXVHFXVWRPHU 6FKRRO(TXLSPHQW VKDOOSD\IRUPDWHULDOVDQGUHDVRQDEOHVWRUDJHFKDUJHV7KHIDLOXUHRIWKH&XVWRPHUWRPDNHSD\PHQWVZLWKLQFRQWUDFWWHUPVVKDOOHQWLWOH+DOGHPDQ+RPPH,QFLQDGGLWLRQWRDOO ȡ 6WRUDJH6\VWHPV RWKHUULJKWVWRVXVSHQGDOOZRUNDQGVKLSPHQWVDQGVKDOOIXUWKHUHQWLWOH+DOGHPDQ+RPPH,QFWRDQH[WHQVLRQRIWLPHRISHUIRUPDQFHRIWKHZRUN1RSD\PHQWVVKDOOEHZLWKKHOG IURPRUSHQDOWLHVDVVHVVHGDJDLQVW+DOGHPDQ+RPPH,QFGXHWRFDXVHVIRUZKLFK+DOGHPDQ+RPPH,QFLVQRWUHVSRQVLEOH ȡ 7UDFNV &XVWRPHUDJUHHVWKDWLIWKHELOOHGDPRXQWLVQRWSDLGZLWKLQWHUPVDVHUYLFHFKDUJHZLOOEHFKDUJHGRQWKHRYHUGXHEDODQFHDWDSHUFHQWDJHUDWHRI $118$/ ȡ 7XUI)LHOGV 3(5&(17$*(5$7( IRUDOODFFRXQWV,IWKHFXVWRPHUIDLOVWRSD\WKHHQWLUHXQSDLGEDODQFHRQWKHDFFRXQWZKHQGXH+DOGHPDQ+RPPH,QFPD\ZLWKRXWIXUWKHUQRWLFHRU GHPDQGH[HUFLVHDOOULJKWVDQGUHPHGLHVDYDLODEOHE\ODZIRUWKHFROOHFWLRQRIWKHEDODQFHGXHRQWKHDFFRXQW+DOGHPDQ+RPPH,QFUHVHUYHVWKHRSWLRQWRH[HUFLVHLWVOLHQ ULJKWVDWDOOWLPHVLQDFFRUGDQFHZLWKDSSOLFDEOHODZWRVHFXUHFROOHFWLRQRIDPRXQWVGXH$SSOLFDQWZLOOEHOLDEOHIRUDOOH[SHQVHVRIFROOHFWLRQZLWKRUZLWKRXWVXLWLQFOXGLQJDOOFRXUW FRVWVDQGUHDVRQDEOHDWWRUQH\¶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ȡ $FDGHPLF6SHFLDOWLHV 7+(0$18)$&785(5(;35(66:$55$17<,63529,'(',1/,(82)$//27+(5:$55$17,(6(;35(6625,03/,('7+(:$55$17,(62)0(5&+$17$%,/,7< ȡ $FDGHPLF6SHFLDOWLHV $1'),71(66)25$3$57,&8/$5385326($5(+(5(%<',6&/$,0('%<++$/ 7; ,QVXUDQFH +DOGHPDQ+RPPH,QFPDLQWDLQVLQVXUDQFHDQGZLOOSURYLGHFHUWLILFDWHVRILQVXUDQFHLIUHTXHVWHGRQFRYHUDJHDQGOLPLWVDVSURYLGHGE\LWVLQVXUDQFHSROLF\1RRWKHULQVXUDQFH ȡ $QGHUVRQ/DGG FRYHUDJHLVSURYLGHGLQFOXGLQJZDLYHURIVXEURJDWLRQRUDGGLWLRQDOQDPHGLQVXUHGV ȡ ,'($ &RGHV &XVWRPHUDUFKLWHFWDQGRUFRQWUDFWRUVKDOOEHUHVSRQVLEOHIRUDOOORFDOVWDWHDQGIHGHUDODJHQF\FRGHFRPSOLDQFHSHUPLWVIHHVGHVLJQHQJLQHHULQJDQGWHVWLQJ+DOGHPDQ +RPPH,QFGRHVQRWSURYLGHSURIHVVLRQDOOLDELOLW\LQVXUDQFHIRUDQ\RIWKHVHVHUYLFHV&RVWVIRUDQ\DQGDOOVXFKVHUYLFHVDUHQRWLQFOXGHGLQWKLVSURSRVDO 6LJQDWXUH 1DPH 'DWH 3OHDVH3ULQW (PSOR\HH2ZQHG ZZZKDOGHPDQKRPPHFRPZZZKKEHVWODEFRP $UNDQVDV±&RORUDGR±,GDKR±,OOLQRLV±,QGLDQD±,RZD±.DQVDV±0LFKLJDQ±0LQQHVRWD±0RQWDQD±1HEUDVND± 1HYDGD±1HZ0H[LFR±1RUWK'DNRWD±2NODKRPD±6RXWK'DNRWD±7H[DV±8WDK±:LVFRQVLQ±:\RPLQJ 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( XGHGLVWKHDWWDFKHG5HTXHVWIRU&RPPLVVLRQ$FWLRQLVLQIRUPDWLRQUHJDUGLQJWKHSURSRVDOVDQGKLVWRULFDOILQDQFLDO UHVXOWV7KHDJUHHPHQWLVDOVRDWWDFKHGIRUUHYLHZ 7KH&LW\$WWRUQH\¶VRIILFHKDVDSSURYHGWKHODQJXDJHRIWKHDJUHHPHQW &281&,/$&7,215(48(67(' 6WDIIUHTXHVWV&RXQFLODSSURYDORIWKH\HDU$XGLR9LVXDO6HUYLFHV$JUHHPHQWZLWK$995,QFDQGH[HFXWLRQRIWKH DJUHHPHQWE\WKH0D\RUDQG&LW\&OHUN 3DFNHW3J 'D 0((7,1*'$7( 'E 0$<2&,9,&&(17(5 $8',29,68$/6(59,&(6$*5((0(17 7KLV$JUHHPHQWHQWHUHGLQWRWKLVBBBBBGD\RIBBBBBBBBBBBBBBBBHHGHG7KH0DQDJHUVKDOODOVRWUDLQDQGDVVLVW&HQWHU VDOHVVWDIIDQGVKDOORUGHUDOODXGLRYLVXDOHTXLSPHQWDQGVHUYLFHVQHHGHGIURP $995¶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¶VVXSSRUWRIDQ\HYHQWWKDW PHHWVERWKRIWKHIROORZLQJFULWHULD L7KHVHUYLFHKRXUVDUHRXWVLGHWKHQRUPDOEXVLQHVVKRXUVRI0RQGD\ WKURXJK)ULGD\ DPWR SP DQG LL7 KHVHUYLFHKRXUVDUHELOOHGWRWKH&HQWHU¶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¶VVROHH[SHQVH&LW\ DJUHHVLWVKDOOPDNHQRDOWHUDWLRQRUUHSDLUWR$995¶VHTXLSPHQWDQGVKDOOQRW SHUPLWDQ\RQHRWKHUWKDQDQDXWKRUL]HGUHSUHVHQWDWLYHRI$995WRSHUIRUPDQ\ VHUYLFHRUUHSDLUZRUNRQ$995¶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¶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¶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¶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ĞƌWůĂŶ͘ WŚĂƐƉƌŽǀŝĚĞĚĨŽƌƵŵƐ͕ŽƵƚƌĞĂĐŚĂŶĚƐƵƉƉŽƌƚŝŶŶƵŵĞƌŽƵƐĂƌĞĂƐŝŶĐůƵĚŝŶŐƌĞǀŝĞǁĂŶĚŝŶƉƵƚŽŶ ĂƉƉůŝĐĂƚŝŽŶƐĨŽƌƌĞĐŽŐŶŝƚŝŽŶŝŶĐůƵĚŝŶŐtĂůŬ&ƌŝĞŶĚůLJŽŵŵƵŶŝƚLJĂŶĚŝĐLJĐůĞ&ƌŝĞŶĚůLJŽŵŵƵŶŝƚLJ͕ƉƌŽǀŝĚŝŶŐ ƐƵƉƉŽƌƚĨŽƌKƉĞŶ^ƚƌĞĞƚƐĞǀĞŶƚƐĂŶĚƚŚĞŝŬĞ^ŚĂƌĞ&ĞĂƐŝďŝůŝƚLJƐƚƵĚLJ͕ĂŶĚƉƌŽŵŽƚŝŶŐďŝĐLJĐůĞƚƌĂŝŶŝŶŐǁŝƚŚŝŶ ƐĐŚŽŽůƐ͘ ZKK'͕ƚŚĞZŽĐŚĞƐƚĞƌKůŵƐƚĞĚWůĂŶŶŝŶŐŝƌĞĐƚŽƌĂŶĚƚŚĞZŽĐŚĞƐƚĞƌWƵďůŝĐtŽƌŬƐŝƌĞĐƚŽƌ͕ĂůŽŶŐǁŝƚŚƐĞǀĞƌĂů WŵĞŵďĞƌƐ͕ŚĂǀĞĚĞƚĞƌŵŝŶĞĚƚŚĂƚW͛ƐƉƵƌƉŽƐĞĂŶĚŵŝƐƐŝŽŶǁŽƵůĚďĞďĞƚƚĞƌƐĞƌǀĞĚŝŶĂŶĂĚǀŝƐŽƌLJƌŽůĞ ƚŽŝƚLJĞƉĂƌƚŵĞŶƚƐĂŶĚƌĞĐŽŵŵĞŶĚƚŚĂƚWďĞƌĞŽƌŐĂŶŝnjĞĚƚŽƌĞĨůĞĐƚŝƚƐƌŽůĞĂƐĂĐŝƚŝnjĞŶĂĚǀŝƐŽƌLJ ĐŽŵŵŝƚƚĞĞƚŽƚŚĞWƵďůŝĐtŽƌŬƐ͕WůĂŶŶŝŶŐ͕ĂŶĚWĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶĞƉĂƌƚŵĞŶƚƐ͘ ŽŵŵŝƚƚĞĞƉĂƌƚŝĐŝƉĂƚŝŽŶŝƐŝŶƚĞŶĚĞĚƚŽŝŶĨŽƌŵƚŚĞŝƚLJĞƉĂƌƚŵĞŶƚƐŽĨƉƌŝŽƌŝƚŝĞƐĂŶĚŶĞĞĚƐŽĨƵƐĞƌŐƌŽƵƉƐ͕ ĂŶĚďĞĂĐŽŶĚƵŝƚĨŽƌƉĞĚĞƐƚƌŝĂŶĂŶĚďŝĐLJĐůĞĨĂĐŝůŝƚLJƵƐĞƌƐƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞĐŽŶƚĞdžƚƐŽĨĐŽŶƐƚƌĂŝŶƚƐĂŶĚ ŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌŝŵƉƌŽǀŝŶŐƉƵďůŝĐĂŶĚƉƌŝǀĂƚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶƐLJƐƚĞŵƐƐĞƌǀŝŶŐƉĞĚĞƐƚƌŝĂŶƐĂŶĚďŝĐLJĐůŝƐƚƐ͘ dŚĞWĞĚĞƐƚƌŝĂŶĂŶĚŝĐLJĐůĞŽŵŵŝƚƚĞĞǁŝůůƐĞƌǀĞĂƐĂƌĞƐŽƵƌĐĞŽĨĐŝƚŝnjĞŶƐ͕ĨĂĐŝůŝƚLJƵƐĞƌƐ͕ĂŶĚƉĞƌƐŽŶƐ ĞdžƉĞƌŝĞŶĐĞĚŝŶŶŽŶͲŵŽƚŽƌŝnjĞĚƚƌĂŶƐƉŽƌƚĂƚŝŽŶƚŽƉƌŽǀŝĚĞŝŶƉƵƚŽŶƉŽůŝĐLJ͕ĨƵŶĚŝŶŐĂŶĚĚĞƐŝŐŶŝƐƐƵĞƐ͕ĂƐ ĚĞƚĞƌŵŝŶĞĚďLJƚŚĞŝƌĞĐƚŽƌƐŽĨWƵďůŝĐtŽƌŬƐ͕WĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶ͕ŽƌWůĂŶŶŝŶŐ͘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³06'3523(57<´ /RW%ORFN0DLQH6WUHHW'HYHORSPHQW2OPVWHG&RXQW\0LQQHVRWD 3,1 ' D (;+,%,7$ /(*$/'(6&5,37,212)³7+(*$5'(163523(57<´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ŶĐůŽƐƵƌĞ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³/DWHPRGHO´PHDQVDYHKLFOHZLWKDPDQXIDFWXUHGDWHQRPRUHWKDQWHQ\HDUV LQWKHSDVW 6XEG0DQLIHVWPHDQVDGDLO\UHFRUGSUHSDUHGE\DWD[LFDEGULYHUVKRZLQJDOOWULSV PDGHE\WKHGULYHUDWWKHWLPHDQGSODFHRIRULJLQGHVWLQDWLRQQXPEHURISDVVHQJHUVDQGWKH DPRXQWRIIDUHRIHDFKWULS 6XEG5DWHFDUGPHDQVDFDUGLVVXHGE\WKHFLW\FOHUNIRUGLVSOD\LQHDFKWD[LFDE ZKLFKFRQWDLQVWKHUDWHVRIIDUHWKHQLQIRUFH 6XEG³6LJQLILFDQWGHFUHDVHLQFUHDVH´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³WD[L´ ³WD[LFDE´RU³FDE´ZLWKRXWFRPSOLDQFHZLWKDOODSSOLFDEOHSURYLVLRQVRIWKLVFKDSWHU $:KHQVWDQGE\WD[LFDEVDUHLQ XVHWKHFLW\WD[LFDEOLFHQVHSODWHVRIWKHOLFHQVHGWD[LFDEXQGHUJRLQJUHSDLUVRUDOWHUDWLRQV VKDOOEHWUDQVIHUUHGWRWKHUHSODFHPHQWWD[LFDE1RQHRIWKHSURYLVLRQVRIWKLVVHFWLRQDUHWR EHFRQVWUXHGDVDXWKRUL]LQJWKHRSHUDWLRQRIDWD[LFDERQWKHVWUHHWVRI5RFKHVWHUE\WKH IUDQFKLVHHZLWKRXWDFLW\WD[LFDEOLFHQVHSODWHDIIL[HGWKHUHWR $,QVSHFWLRQRI9HKLFOHV6XEGLYLVLRQ3ULRUWRWKHLQLWLDOXVHDQGRSHUDWLRQRI DQ\YHKLFOHXQGHUWKHDXWKRULW\RIDQ\IUDQFKLVHVDLGYHKLFOHVKDOOEHWKRURXJKO\H[DPLQHG DQGLQVSHFWHGE\DFHUWLILHGPHFKDQLFDQGIRXQGWRFRPSO\ZLWKDOOVWDQGDUGVRIVDIHW\ SUHVFULEHGE\WKHODZVRIWKHVWDWHRUWKHFLW\$QLQVSHFWLRQUHSRUWVKRZLQJWKDWDYHKLFOHKDV PHWWKHVWDQGDUGVRIVDIHW\SUHVFULEHGE\ODZPXVWEHSUHVHQWHGWRWKHFLW\FOHUNDWWKHWLPH RIOLFHQVHDSSOLFDWLRQ 8SGDWHG $ 3DFNHW3J (E &+$37(5 $7$;,&$%6 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 6XEG(YHU\YHKLFOHRSHUDWLQJXQGHUDXWKRULW\RIDQ\IUDQFKLVHVKDOOEHLQVSHFWHG DQQXDOO\E\DFHUWLILHGPHFKDQLFDQGDQLQVSHFWLRQUHSRUWVKRZLQJWKDWWKHYHKLFOHKDVPHWWKH VWDQGDUGVRIVDIHW\SUHVFULEHGE\ODZPXVWEHSUHVHQWHGWRWKHFLW\FOHUNWRLQVXUHWKH FRQWLQXHGPDLQWHQDQFHRIVDIHRSHUDWLQJFRQGLWLRQV7KHFLW\PD\UDQGRPO\LQVSHFWDQ\ YHKLFOHLQWKHIOHHWRIDQ\IUDQFKLVHDVGHWHUPLQHGE\WKHFLW\7KHRSHUDWLRQRIDQ\YHKLFOH ZKLFKIDLOVWRPHHWWKHVWDQGDUGVRIVDIHW\SUHVFULEHGE\ODZVKDOOEHGLVFRQWLQXHGXQWLOVXFK WLPHDVWKHGHILFLHQF\LVHOLPLQDWHG 6XEG1RIUDQFKLVHHVKDOOXVHLQLWVIOHHWDWD[LFDEQRWRIODWHPRGHO $ 6DQLWDWLRQ7D[LFDEVPXVWEHNHSWLQDFOHDQDQGVDQLWDU\FRQGLWLRQ(YHU\ YHKLFOHRSHUDWLQJXQGHUDXWKRULW\RIDQ\IUDQFKLVHVKDOOEHNHSWLQDFOHDQDQGVDQLWDU\FRQGLWLRQ ERWKDVWRLQWHULRUDQGH[WHULRU $,GHQWLI\LQJ&RORUVHWF(DFKWD[LFDEVKDOOEHSDLQWHGLQXQLIRUPFRPSDQ\ FRORUVVKDOOKDYHDQLGHQWLI\LQJWRSOLJKWVKDOOEHDURQWKHRXWVLGHRIDWOHDVWRQHGRRURQHDFK VLGHRIWKHWD[LFDELQSDLQWHGOHWWHUVDQGQXPEHUVQRWOHVVWKDQWKUHHLQFKHVLQKHLJKWWKHWUDGH RUILUPQDPHRIWKHIUDQFKLVHHDQGWKHQXPEHUDVVLJQHGWRHDFKWD[LFDE(DFKWD[LFDEPD\ LQDGGLWLRQEHDUDQLGHQWLI\LQJV\PERORUGHVLJQDQGWKHDFWXDOQDPHRIWKHIUDQFKLVHHDV RZQHU,IDWD[LFDELVDOVRXVHGDVD71&YHKLFOHZKHQRSHUDWLQJDVD71&YHKLFOHLWPXVW FRPSO\ZLWKDOOODZVUHODWLQJWKHUHWR $'UHVV&RGH(DFKDSSURYHGIUDQFKLVHHVKDOOGHYHORSDQGLPSOHPHQWD FRPSDQ\SROLF\IRUXQLIRUPGUHVV(DFKGULYHUVKDOOEHQHDWDQGFOHDQLQGUHVVDQGDSSHDUDQFH VKDOOZHDUDFRPSDQ\XQLIRUPLQFOXGLQJDFROODUHGVKLUWDQGORQJWURXVHUVDQGVKDOOGLVSOD\D FLW\LVVXHGGULYHU¶VSHUPLWZLWKSKRWRDQGQDPHSODWHRQWKHRXWHUPRVWOD\HURIFORWKLQJDWDOO WLPHVZKLOHRQGXW\$GULYHUVKDOOQRWZHDUDGULYHU¶VSHUPLWZKLOHRIIGXW\ $'ULYHU¶V3HUPLW6XEGLYLVLRQ(DFKSHUVRQZKRGHVLUHVWREHFRPHDWD[LFDE GULYHUVKDOOILUVWREWDLQDSHUPLWIURPWKHFLW\(DFKSHUPLWVKDOOEHYDOLGIRUWKHFDOHQGDU\HDULQ ZKLFKLWLVLVVXHG$QLQLWLDOSHUPLWDSSOLFDWLRQVKDOOEHVXEMHFWWRDQLQYHVWLJDWLRQIHHRI 7KHDQQXDOSHUPLWIHHVKDOOEH1RGULYHU¶VSHUPLWVKDOOEHLVVXHGWRDSHUVRQ $8QGHU\HDUVRIDJH %:KRGRHVQ¶WSRVVHVVDYDOLGGULYHU¶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¶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¶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ĞŶŝŽƌWůĂŶŶĞƌ ZŽĐŚĞƐƚĞƌKůŵƐƚĞĚŽƵŶƚLJWůĂŶŶŝŶŐ WŚŽŶĞ͗;ϱϬϳͿϯϮϴͲϳϭϬϵ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imes New Roman]]+ [[427,1037,439,1094][12][B,I,][Times New Roman]] [[431,1037,816,1094][12][B,I,][Times New Roman]]6LWH/RFDWLRQ³+´ [[816,1037,844,1094][12][B,I,][T imes New Roman]] [[847,1038,2112,1095][12][,I,][Times New Roman]],QRUGHUWRDYRLGWKHSRWHQWLDOQHJDWLYHLPSDFWRIUHVLGHQWLDO [[423,1096,2112,1153][12][,I,][Times New Roman]]IDFLOLWLHVRQDQHLJKERUKRRGQRWZR7\SH,,RU7\SH,,,IDFLOLWLHVPD\ORFDWHZLWKLQ [[432,1153,504,1210][12][,I,][Times New Roman]]RQH [[504,1153,520,1210][12][,I,][Times New Roman]] [[520,1153,1844,1210][12][,I,][Times New Roman]]TXDUWHUPLOHRIHDFKRWKHU$QH[FHSWLRQPD\EHPDG HLIWKHWZR [[1838,1153,2112,1210][12][,I,][Times New Roman]]IDFLOLWLHVDUH [[432,1211,2112,1268][12][,I,][Times New Roman]]VHSDUDWHGE\DSK\VLFDOEDUULHUVXFKDVDQDUWHULDOVWUHHWQRQUHVLGHQWLDO]RQLQJRU [[432,1268,2112,1325][12][,I,][Times New Roman]]WRSRJUDSKLFDOIHDWXUHVWKDWFRXOGPLWLJDWHWKHQHHGIRUVHSDUDWLQJVXFKIDFLOLWLHV,Q [[432,1326,1790,1383][12][,I,][Times New Roman]]VXFKLQVWDQFHVWKHUHTXHVWIRUD]RQLQJFHUWLILFDWHVKDOOEHSURFHVV [[1790,1326,2111,1383][12][,I,][Times New Roman]]HGDVD7\SH,, [[511,1382,523,1439][12][B,I,][Times New Roman]] [[432,1383,510,1440][12][,I,][Times New Roman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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 tĞĚŶĞƐĚĂLJ͕ĞĐĞŵďĞƌϭϰ͕ϮϬϭϲ͕Ăƚϲ͗ϬϬƉ͘ŵ͘ ŝŶƚŚĞŽƵŶĐŝůͬŽĂƌĚŚĂŵďĞƌƐŽĨƚŚĞ'ŽǀĞƌŶŵĞŶƚ ĞŶƚĞƌ͕ϭϱϭϰƚŚ^ƚƌĞĞƚ^ ͕ZŽĐŚĞƐƚĞƌ͕DE͘ DĞŵďĞƌƐWƌĞƐĞŶƚ ͗Dƌ͘DŝĐŚĂĞůtĂůƚĞƌƐ͕ŚĂŝƌ͖DƐ͘>ŝŶĚƐĞLJDĞĞŬ͕sŝĐĞ ͲŚĂŝƌ͖Dƌ͘WĂƵů^ŝŵƐ͕Dƌ͘ dŚŽŵĂƐ,ŝůů͖Dƌ͘<ƌĂŝŐƵƌƐƚ͕Dƌ͘^ƚĞǀĞ^ŚĞƌǁŽŽĚĂŶĚDƌ͘tĂĚĞ'ŽŽĚĞŶďĞƌŐĞƌ͕ DĞŵďĞƌƐďƐĞŶƚ͗ DƐ͘ZĞŐŝŶĂ^ĞĂďƌŽŽŬ͖DƐ͘ƌŝƚƚĂŶLJtŝůƐŽŶ ^ƚĂĨĨWƌĞƐĞŶƚ͗ Dƌ͘'ƌĞŐ:ŽŚŶƐŽŶ͕^ĞŶŝŽƌWůĂŶŶĞƌ͖Dƌ͘DĂƌŬ ŶŐĞů͕WƌŝŶĐŝƉĂůWůĂŶŶĞƌ͖Dƌ͘ĂǀĞƵŶŶ͕ ƐƐŝƐƚĂŶƚWůĂŶŶŝŶŐŝƌĞĐƚŽƌ͖ĂŶĚDƐ͘ĞƚŚĂǀŝƐ͕ƐĞĐƌĞƚĂƌLJ KƚŚĞƌŝƚLJ^ƚĂĨĨWƌĞƐĞŶƚ͗ DƐ͘WĂƚůĨƌĞĚƐŽŶ͕ŝƚLJƚƚŽƌŶĞLJ ^ĞƚKƌĚĞƌKĨŐĞŶĚĂ ͗ Dƌ͘^ŝŵƐŵŽǀĞĚƚŽĂƉƉƌŽǀĞƚŚĞĂŐĞŶĚĂ͕ĂƐǁƌŝƚƚĞŶ͘Dƌ͘^ŚĞƌǁŽŽĚƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞ ŵŽƚŝŽŶĐĂƌƌŝĞĚƵŶĂŶŝŵŽƵƐůLJ͘ ŽŶƐĞŶƚŐĞŶĚĂ ͗ Dƌ͘ƵƌƐƚŵĂĚĞĂŵŽƚŝŽŶƚŽĂƉƉƌŽǀĞƚŚĞĨŽůůŽǁŝŶŐĐŽŶƐĞŶƚŝƚĞŵƐ͘Dƌ͘,ŝůůƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘ x EŽǀĞŵďĞƌϯϬ͕ϮϬϭϲŵŝŶƵƚĞƐ dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚƵŶĂŶŝŵŽƵƐůLJ͘ WƵďůŝĐ,ĞĂƌŝŶŐƐ͗ ŽŶĚŝƚŝŽŶĂůhƐĞWĞƌŵŝƚηZϮϬϭϲ Ͳ ϬϯϳhWďLJ:ĂĐŬŝĞ^ŝĞĨĞƌƚĨŽƌĂŐƌŽƵƉƌĞƐŝĚĞŶƚŝĂůĐĂƌĞƵƐĞůŽĐĂƚĞĚ ĂƚϭϭϬϱ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͘ Dƌ͘:ŽŚŶƐŽŶƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚĞĐĞŵďĞƌϭϰ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨ ƌĞƉŽƌƚŝƐŽŶĨŝůĞĂƚƚŚĞZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ ƚŚ Dƌ͘ƌŝĂŶ^ŝĞĨĞƌƚ͕ƌĞƐŝĚŝŶŐĂƚϰϰϴϭϱϳ^ƚƌĞĞƚEt͕ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĂůŽŶŐǁŝƚŚŚŝƐǁŝĨĞ͕:ĂĐŬŝĞ͕ĂƌĞƚŚĞŽǁŶĞƌƐŽĨƚŚĞďƵƐŝŶĞƐƐƌĞƋƵĞƐƚŝŶŐƚŚĞ ĐŽŶĚŝƚŝŽŶĂůƵƐĞƉĞƌŵŝƚ͖ŚĞƉƌĞƐĞŶƚĞĚĂŶŽǀĞƌǀŝĞǁŽŶƚŚĞŽƚŚĞƌƐŝŵŝůĂƌďƵƐŝŶĞƐƐŽǁŶĞĚŝŶƚŚĞ ĐŽŵŵƵŶŝƚLJ͖ƚŚĞƌĞƋƵĞƐƚŝƐďĞŝŶŐĂƐŬĞĚĨŽƌďĞĐĂƵƐĞƚŚŝƐůŽĐĂƚŝŽŶǁŝůůďĞƌĞƉůĂĐŝŶŐĂĐƵƌƌĞŶƚůŽĐĂƚŝŽŶ͖ _3DJH 3DFNHW3J )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗ĞĐĞŵďĞƌϭϰ͕ϮϬϭϲ ƚŚĞLJĂƌĞĂƐŬŝŶŐĨŽƌƚŚĞĐŽŶĚŝƚŝŽŶĂůƵƐĞƉĞƌŵŝƚĨŽƌϵƌĞƐŝĚĞŶƚƐĂƐƚŚŝƐŝƐǁŚĂƚŝƐĐƵƌƌĞŶƚůLJůŽĐĂƚĞĚĂƚ ĂŶŽƚŚĞƌůŽĐĂƚŝŽŶ͖ŚĞĂĚĚƌĞƐƐĞĚĐŽŶĐĞƌŶĞĚƉƌŽƉŽƐĞĚďLJƚŚĞĂƌĞĂŶĞŝŐŚďŽƌƐ͘ Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĂƐŬĞĚĂďŽƵƚƌĞƐŝĚĞŶƚŶƵŵďĞƌĂƚŽƚŚĞƌůŽĐĂƚŝŽŶƐ͘ Dƌ͘^ŝĞĨĞƌƚƌĞƐƉŽŶĚĞĚ͘ Dƌ͘,ŝůůĂƐŬĞĚĂďŽƵƚŽƚŚĞƌƌĞƐŝĚĞŶƚŚŽŵĞĨĞĂƚƵƌĞƐ͘ Dƌ͘^ŝĞĨĞƌƚƌĞƐƉŽŶĚĞĚ͘ Dƌ͘,ŝůůĂƐŬĞĚĂďŽƵƚƚŚĞůŝĐĞŶƐŝŶŐĞŶƚŝƚLJĨŽƌƚŚĞĨĂĐŝůŝƚŝĞƐ͘ Dƌ͘^ŝĞĨĞƌƚƌĞƐƉŽŶĚĞĚ͘ DƐ͘Ğď^ƵŵŵĞƌƐŽŶ͕ƌĞƐŝĚŝŶŐĂƚϭϰϬϯ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘^ŚĞƌĞƐƉŽŶĚĞĚƚŽƚŚĞŝŵƉĂĐƚƐŽĨĂĚĚŝƚŝŽŶĂůǀĞŚŝĐƵůĂƌƚƌĂĨĨŝĐŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚ͖ĂŶĚ ƐĂĨĞƚLJĐŽŶĐĞƌŶƐ͘ WůĂŶŶŝŶŐƐƚĂĨĨĂĚĚƌĞƐƐĞĚƋƵĞƐƚŝŽŶƐƌĞŐĂƌĚŝŶŐǁŚĂƚŝƐĂĐƚƵĂůůLJďĞŝŶŐĂƐŬĞĚĨŽƌĂƉƉƌŽǀĂů͘ DƐ͘ĞďZĂŬŶĞƌƵĚ͕ƌĞƐŝĚŝŶŐĂƚϭϭϬϰ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ^ŚĞĞdžƉƌĞƐƐĞĚĐŽŶĐĞƌŶĨŽƌƚŚĞĂĚĚŝƚŝŽŶĂůǀŽůƵŵĞĂŶĚƐĂĨĞƚLJĐŽŶĐĞƌŶƐƚŚĞhWǁŽƵůĚďƌŝŶŐƚŽƚŚĞ ŶĞŝŐŚďŽƌŚŽŽĚ͖ĂŶĚƚŚĞůŝŵŝƚĞĚĂĐĐĞƐƐŝŶƚŽĂŶĚŽƵƚŽĨƚŚĞ'ƌĞLJƐƚŽŶĞĚĞǀĞůŽƉŵĞŶƚ͘ ƚŚ DƐ͘:ĂĐŬŝĞ^ŝĞĨĞƌƚ͕ƌĞƐŝĚŝŶŐĂƚϰϰϴϭϱϳ^ƚƌĞĞƚEt͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘^ŚĞ ŶŽƚĞĚƚŚĞĨĂĐŝůŝƚLJŝƐŶŽƚĂŐƌŽƵƉŚŽŵĞ͖ƚŚĞƌĞŝƐůŝŵŝƚĞĚǀŝƐŝƚŽƌƐƚŽƚŚĞĨĂĐŝůŝƚLJ͖ŵŽƐƚƌĞƐŝĚĞŶƚƐŚĂǀĞ ŐƵĂƌĚŝĂŶƐǁŚŝĐŚĂƌĞůŝŵŝƚĞĚǀŝƐŝƚƐ͖ĂŶĚĂĚĚƌĞƐƐĞĚĞŵĞƌŐĞŶĐLJǀĞŚŝĐůĞƚƌĂĨĨŝĐŝƐƵƐĞĚŽŶůLJŝŶ ĂďƐŽůƵƚĞůLJŶĞĞĚĞĚďĂƐŝƐĂŶĚĂƚƚĞŵƉƚƚŽŬĞĞƉĂƚĂŵŝŶŝŵƵŵ͘ DƐ͘>ĂƵƌŝĞdŚĂƚĐŚĞƌ͕ƌĞƐŝĚŝŶŐĂƚϭϭϭϮ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘^ŚĞĞdžƉƌĞƐƐĞĚĐŽŶĐĞƌŶǁŝƚŚƚŚĞĞŵĞƌŐĞŶĐLJǀĞŚŝĐůĞƐŝŶƚŚĞƐŝŶŐůĞĞŶƚƌLJƚŽƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ͘ ƚŚ Dƌ͘ĂƌLJŶZƵŐŐĞďĞƌŐ͕ƌĞƐŝĚŝŶŐĂƚϰϮϯϬϯϰ^ƚƌĞĞƚ^ ͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,Ğ ŝƐĐƵƌƌĞŶƚůLJĂŶŽǁŶĞƌĂŶĚŽƉĞƌĂƚŽƌŽĨĂĨŽƐƚĞƌĐĂƌĞŚŽŵĞ͖ŶŽƚĞĚƚŚĂƚƉĂƌŬŝŶŐĂŶĚƚƌĂĨĨŝĐŝƐůŝŵŝƚĞĚ ǁŝƚŚƚŚĞŝƌĨĂĐŝůŝƚLJ͖ĂŶĚƐƚĂƚĞĚƚŚĞĨĂĐŝůŝƚLJŝƐƋƵŝĞƚŝŶŶĂƚƵƌĞ͘ DƐ͘DĂĚĚŝĞ'ŽƐƐ͕ƌĞƐŝĚŝŶŐĂƚϰϭϯϱƌĂĞŵŽƌĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ^ŚĞĂĚĚƌĞƐƐĞĚƚŚĞĐŽŶĐĞƌŶŽĨƚŚĞůŝŵŝƚĞĚĂĐĐĞƐƐŽĨǀĞŚŝĐƵůĂƌƚƌĂĨĨŝĐĂŶĚŚŽǁŵĂŶLJŚŽŵĞƐǁŝůůďĞ ŝŵƉĂĐƚĞĚŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚ͘ DƐ͘ĞďZĂŬŶĞƌƵĚ͕ƌĞƐŝĚŝŶŐĂƚϭϭϬϰ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ^ŚĞŶŽƚĞĚĂŶĂĚĚŝƚŝŽŶĂůƉĂŐĞŽĨƐŝŐŶĂƚƵƌĞƐĨŽƌƚŚĞƉĞƚŝƚŝŽŶǁĂƐŶŽƚŝŶĐůƵĚĞĚŝŶƚŚĞƐƵďŵŝƚƚĂů͘ _3DJH 3DFNHW3J )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗ĞĐĞŵďĞƌϭϰ͕ϮϬϭϲ Dƌ͘ƌŝĂŶ^ŝĞĨĞƌƚ͕ƌĞƐŝĚŝŶŐĂƚϰϰϴϭϱϳ ƚŚ^ƚƌĞĞƚEt͕ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĂĚĚƌĞƐƐĞĚƚŚĞĐŽŶĐĞƌŶŽĨƚŚĞŶĞŝŐŚďŽƌƐŝŶƌĞŐĂƌĚƐƚŽƚŚĞǀŽůƵŵĞŽĨĐĂůůƐĨŽƌ ĞŵĞƌŐĞŶĐLJǀĞŚŝĐůĞƐ͘ DƐ͘<ĞůůLJ,ĂŶŐŐĞ͕ƌĞƐŝĚŝŶŐϭϮϭϰ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ^ŚĞŶŽƚĞĚƚŚĞƵŶƐĂĨĞĐŽŶĚŝƚŝŽŶƐŽĨƚŚĞĂƌĞĂǁŝƚŚǁŽŽĚĞĚƐƉĂĐĞŶĞĂƌƚŚĞŚŽŵĞĂŶĚƚŚĞƉŽƐƐŝďŝůŝƚLJ ŽĨĂƌĞƐŝĚĞŶƚŐĞƚƚŝŶŐůŽƐƚ͘ Dƌ͘ƌŝĂŶ^ŝĞĨĞƌƚ͕ƌĞƐŝĚŝŶŐĂƚϰϰϴϭϱϳ ƚŚ^ƚƌĞĞƚEt͕ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĂĚĚƌĞƐƐĞĚƚŚĞĐŽŶĐĞƌŶŽĨƐĂĨĞƚLJĨŽƌƌĞƐŝĚĞŶƚƐŐĞƚƚŝŶŐŽƵƚŝŶƚŽǁŽŽĚĞĚĂƌĞĂƐ͖ƚŚĞLJ ŚĂǀĞŶĞǀĞƌŚĂĚĂƌĞƐŝĚĞŶƚŐĞƚůŽƐƚ͘ Dƌ͘dŽĚĚ^ƵŵŵĞƌƐŽŶ͕ƌĞƐŝĚŝŶŐĂƚϭϰϬϯ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDEϱϱϵϬϭ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĂĚĚƌĞƐƐĞĚƚŚĞĐŽŶĐĞƌŶƐǁŝƚŚƚŚĞŶƵŵďĞƌŽĨƌĞƐŝĚĞŶƚƐĂƚƚŚĞĨĂĐŝůŝƚLJ͖ĂŶĚŶŽƚĞĚ ĐŽŶĐĞƌŶŽĨƐĂĨĞƚLJĨŽƌŚŝƐĚĂƵŐŚƚĞƌƐŝŶƚŚĞŶĞŝŐŚďŽƌŚŽŽĚ͘ Dƌ͘ŚƌŝƐĞůƚƌĂŶ͕ƌĞƐŝĚŝŶŐĂƚϭϮϮϭ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌ͕DE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ,ĞŶŽƚĞĚƐƵƉƉŽƌƚĨŽƌƐŝdžƌĞƐŝĚĞŶƚƐďƵƚŶŽƚƚŚĞŝŶĐƌĞĂƐĞŽĨŶŝŶĞ͖ƚŚĞŶĞĞĚĨŽƌƉůĂŶŶŝŶŐǁŝƚŚŝŶƚŚĞ ŝƚLJĨŽƌƚŚĞƐĞƚLJƉĞƐŽĨĐŽŶĚŝƚŝŽŶĂůƵƐĞƉĞƌŵŝƚƐ͘ Dƌ͘dŽĚĚ^ƵŵŵĞƌƐŽŶ͕ƌĞƐŝĚŝŶŐĂƚϭϰϬϯ'ƌĞLJƐƚŽŶĞ>ĂŶĞ^t͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞĞdžƉƌĞƐƐĞĚĨŽƌĐŽŶĐĞƌŶĨŽƌŬĞĞƉŝŶŐƌĞĐŽƌĚƐŽĨĐŽŶĚŝƚŝŽŶĂůƵƐĞƉĞƌŵŝƚƐǁŝƚŚŝŶƚŚĞ ŝƚLJ͘ tŝƚŚŶŽŽŶĞĞůƐĞǁŝƐŚŝŶŐƚŽďĞŚĞĂƌĚ͕Dƌ͘tĂůƚĞƌƐĐůŽƐĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞĐŽŵŵŝƐƐŝŽŶŽŶƚŚĞhWŵĞĞƚŝŶŐƚŚĞĐƌŝƚĞƌŝĂŽĨƚŚĞ>D͖ƌĞƐƚƌŝĐƚŝŽŶƐ ǁŚŝĐŚŵĂLJďĞĂƉƉůŝĞĚƚŽƚŚĞĐŽŶĚŝƚŝŽŶĂůƵƐĞƉĞƌŵŝƚ͖ĐŽŶĐĞƌŶƐŽĨƐƚƌĞĞƚƉĂƌŬŝŶŐŐĞŶĞƌĂƚĞĚďLJƚŚĞ ďƵƐŝŶĞƐƐ͖ŐƌŽƵƉŚŽŵĞƐĂƌĞĂůůŽǁĞĚŝŶƚŚĞZ Ͳ ϭnjŽŶĞ͕ƚŚĞŝƐƐƵĞŝƐǁŚĞƚŚĞƌƚŽĂůůŽǁϵƌĞƐŝĚĞŶƚƐǀĞƌƐƵƐ ϲ͖ĂŶĚŵĂŶĞƵǀĞƌŝŶŐŽĨĞŵĞƌŐĞŶĐLJǀĞŚŝĐůĞƚƌĂĨĨŝĐ͘ Dƌ͘^ŝŵƐŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĂƉƉƌŽǀĞĚŽĨŽŶĚŝƚŝŽŶĂůhƐĞWĞƌŵŝƚηZϮϬϭϲ Ͳ ϬϯϳhWǁŝƚŚƚŚĞ ƐƚĂĨĨ Ͳ ƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐĂŶĚĐŽŶĚŝƚŝŽŶƐ͘Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘ KE/d/KE^͗ ϭ͘dŚĞƉƌŽƉŽƐĞĚĐŚĂŶŐĞŵĂLJďĞĐŽŶƐŝĚĞƌĞĚĂƐĂΗŚĂŶŐĞŽĨhƐĞΗĚĞƉĞŶĚŝŶŐŽŶƚŚĞƚLJƉĞŽĨ ůŝĐĞŶƐĞĂŶĚǁŚĞƚŚĞƌƚŚĞƌĞƐŝĚĞŶƚƐĂƌĞĐĂƉĂďůĞŽĨƚĂŬŝŶŐĂƉƉƌŽƉƌŝĂƚĞĂĐƚŝŽŶĨŽƌƐĞůĨ Ͳ ƉƌĞƐĞƌǀĂƚŝŽŶŝŶĞŵĞƌŐĞŶĐLJĐŽŶĚŝƚŝŽŶƐ͘dŚĞĂƉƉůŝĐĂŶƚƐŚĂůůǁŽƌŬǁŝƚŚƚŚĞZŽĐŚĞƐƚĞƌƵŝůĚŝŶŐ ^ĂĨĞƚLJĞƉĂƌƚŵĞŶƚƚŽĚĞƚĞƌŵŝŶĞďƵŝůĚŝŶŐĐŽĚĞƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƚŚĞƉƌŽƉŽƐĞĚƵƐĞ͘ Ϯ͘ĞƉĞŶĚŝŶŐƵƉŽŶƚŚĞƚLJƉĞŽĨĨĂĐŝůŝƚLJĐůĂƐƐŝĨŝĐĂƚŝŽŶĂŶĚŝƚƐŽĐĐƵƉĂŶĐLJĐůĂƐƐŝĨŝĐĂƚŝŽŶ͕ƚŚĞĨĂĐŝůŝƚLJ ŵĂLJƌĞƋƵŝƌĞĂŶĂƵƚŽŵĂƚŝĐƐƉƌŝŶŬůĞƌƐLJƐƚĞŵ͕ĂůŽŶŐǁŝƚŚĨŝƌĞͬƐŵŽŬĞĂůĂƌŵĂŶĚĚĞƚĞĐƚŝŽŶ ƐLJƐƚĞŵŵŽŶŝƚŽƌĞĚďLJĂŶŽĨĨ Ͳ ƐŝƚĞŵŽŶŝƚŽƌŝŶŐĐŽŵƉĂŶLJ͘ ϯ͘/ŶƚŚĞĞǀĞŶƚƐŝƚĞŵŽĚŝĨŝĐĂƚŝŽŶƐĂƌĞƌĞƋƵŝƌĞĚƚŚƌŽƵŐŚƚŚĞĂƉƉƌŽǀĂůƉƌŽĐĞƐƐ͕ƚŚĞŶĂ'ƌĂĚŝŶŐΘ ƌĂŝŶĂŐĞWůĂŶĂƉƉƌŽǀĂůŵĂLJďĞƌĞƋƵŝƌĞĚ͘ _3DJH 3DFNHW3J )M ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗ĞĐĞŵďĞƌϭϰ͕ϮϬϭϲ ϰ͘ZĞƐŝĚĞŶƚƐŽĨƚŚĞŐƌŽƵƉƌĞƐŝĚĞŶƚŝĂůĐĂƌĞƵƐĞƐŚĂůůŶŽƚŚĂǀĞƉĞƌƐŽŶĂůĐĂƌƐƉĂƌŬĞĚŽŶƚŚĞƐŝƚĞ͘ Dƌ͘,ŝůůŵĂĚĞĂŵŽƚŝŽŶĨŽƌĂŶĂŵĞŶĚŵĞŶƚƚŽƚŚĞŽƌŝŐŝŶĂůŵŽƚŝŽŶƚŽĂĚĚĂĐŽŶĚŝƚŝŽŶ͗ ϱ͘dŚĞĐŽŶĚŝƚŝŽŶĂůƵƐĞƉĞƌŵŝƚŝƐƌĞƐƚƌŝĐƚĞĚƚŽƚŚĞĚƵƌĂƚŝŽŶŽĨŽŶĞLJĞĂƌƚŽĞŶƐƵƌĞĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ^ƵďĚŝǀŝƐŝŽŶϮĂ͘ DƐ͘DĞĞŬƐĞĐŽŶĚĞĚ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϱ Ͳ Ϯ͘Dƌ͘'ŽŽĚĞŶďĞƌŐĞƌĂŶĚDƌ͘ƵƌƐƚǀŽƚŝŶŐŶĂLJ͘ dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϲ Ͳ ϭ͘Dƌ͘ƵƌƐƚǀŽƚĞĚŶĂLJ͘ ^ƉĞĐŝĂůŝƐƚƌŝĐƚŵĞŶĚŵĞŶƚηZϮϬϭϲ Ͳ ϬϬϳ^ƚŽƚŚĞŚĂƚĞĂƵŝƌĐůĞ^ƉĞĐŝĂůŝƐƚƌŝĐƚďLJŚĂƚĞĂƵŝƌĐůĞ >>͘dŚĞĂƉƉůŝĐĂŶƚŝƐƉƌŽƉŽƐŝŶŐƚŽĂŵĞŶĚƚŚĞ^ƉĞĐŝĂůŝƐƚƌŝĐƚƚŽŵŽĚŝĨLJƚŚĞ^ƉĞĐŝĂůŝƐƚƌŝĐƚ ůĂŶŐƵĂŐĞĂŶĚƐŝƚĞƉůĂŶ͘dŚĞƉƌŽũĞĐƚŝƐůŽĐĂƚĞĚŶŽƌƚŚŽĨϱϱƚŚ^ƚƌĞĞƚEtĂŶĚ^ŽƵƚŚŽĨsŝůůĂZŽĂĚ Et͘ Dƌ͘:ŽŚŶƐŽŶƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚĞĐĞŵďĞƌϭϰ͕ϮϬϭϲ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨ ƌĞƉŽƌƚŝƐŽŶĨŝůĞĂƚƚŚĞZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘WĞƚĞƌŽLJůĞ͕ůŽĐĂƚĞĚĂƚϴϯϬϬEŽƌŵĂŶĞŶƚĞƌ͕ůŽŽŵŝŶŐƚŽŶ͕DE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,Ğ ĂĚĚƌĞƐƐĞĚƚŚĞĐŽŶĐĞƌŶǁŝƚŚƚŚĞŶĞĞĚĞĚƉƌŽƉĞƌƚLJŽǁŶĞƌƐŝŐŶĂƚƵƌĞĨŽƌĂƉƉƌŽǀĂůŽĨƚŚĞ'W ĂŵĞŶĚŵĞŶƚ͖ŚĞƉƌĞƐĞŶƚĞĚĂŶƵƉĚĂƚĞƚŽƚŚĞƉƌŽƉĞƌƚŝĞƐŝŶƚŚĞŚĂƚĞĂƵŝƌĐůĞĚĞǀĞůŽƉŵĞŶƚ͖ĂŶĚ ĞdžƉůĂŝŶĞĚŝŶĚĞƚĂŝůǁŚĂƚŝƐďĞŝŶŐƌĞƋƵĞƐƚĞĚďLJƚŚĞĚĞǀĞůŽƉĞƌ͘ DƐ͘ĂƌďĂƌĂsŝƌŝŶŐ͕ƌĞƐŝĚŝŶŐĂƚϱϳϯϯ>ŽŶŐďŽĂƚZŽĂĚEt͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ^ŚĞŝƐƌĞƉƌĞƐĞŶƚŝŶŐƚŚĞŶĞŝŐŚďŽƌŚŽŽĚĂƐƐŽĐŝĂƚŝŽŶ͖ƐŚĞƉƌĞƐĞŶƚĞĚďĂĐŬŐƌŽƵŶĚŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚĞ ŶĞŝŐŚďŽƌŚŽŽĚŵĞĞƚŝŶŐǁŝƚŚƚŚĞĚĞǀĞůŽƉĞƌ͖ĂŶĚůŝƐƚĞĚŽƵƚĐŽŶĐĞƌŶƐƚŚĞŶĞŝŐŚďŽƌŚŽŽĚŚĂƐĨŽƌƚŚĞ ĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ͘ Dƌ͘ŽďEŽƌĚŵĂŶ͕ƌĞƐŝĚŝŶŐĂƚϱϲϳϭ>ŽŶŐďŽĂƚZŽĂĚEt͕ZŽĐŚĞƐƚĞƌ͕DE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘ ,ĞƉƌĞƐĞŶƚĞĚŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚǁŝƚŚŝŶƚŚĞƐƉĞĐŝĂůĚŝƐƚƌŝĐƚǁŚŝĐŚĂƌĞŶŽƚ ĂŐƌĞĞĂďůĞ͖ƌĞĂĚĂůŝƐƚŽĨƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĨŽƌĚĞŶŝĂůŽĨƚŚĞĂŵĞŶĚŵĞŶƚ͖ĂŶĚƉƌĞƐĞŶƚĞĚĂůƚĞƌŶĂƚĞ ĚƌĂǁŝŶŐƐĨŽƌĂĐŚŝĞǀŝŶŐǁŚĂƚƚŚĞĚĞǀĞůŽƉĞƌĚĞƐŝƌĞƐ͘ Dƌ͘WĞƚĞƌŽLJůĞ͕ůŽĐĂƚĞĚĂƚϴϯϬϬEŽƌŵĂŶĞŶƚĞƌ͕ůŽŽŵŝŶŐƚŽŶ͕DE͕ĂĚĚƌĞƐƐĞĚƚŚĞŽŵŵŝƐƐŝŽŶ͘,Ğ ŶŽƚĞĚƚŚĞĚĞĐŝƐŝŽŶƉƌĞƐĞŶƚĞĚƚŽŶŝŐŚƚŝƐĨŽƌƚŚĞƐƉĞĐŝĂůĚŝƐƚƌŝĐƚĂŵĞŶĚŵĞŶƚ͖ŶŽƚƉƌŽƉŽƐŝŶŐƚŽ ƌĞŵŽǀĞĂŶLJŽĨƚŚĞĚĞƐŝŐŶĐƌŝƚĞƌŝĂƐƚĂŶĚĂƌĚƐǁŚŝĐŚŚĂǀĞďĞĞŶďƵŝůƚŝŶƚŽƚŚĞƐƉĞĐŝĂůĚŝƐƚƌŝĐƚ͖ĚŽĞƐŶŽƚ ĂŐƌĞĞĂŶLJƚŚŝŶŐŝƐďĞŝŶŐĚŽŶĞǁŚŝĐŚŝƐŶŽƚŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƐƉĞĐŝĂůĚŝƐƚƌŝĐƚŝŶƉůĂĐĞ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚŝŶƌĞŐĂƌĚƐƚŽƚŚĞĂůůŽǁĂďůĞƐƋƵĂƌĞĨŽŽƚĂŐĞĚŝƐĐƌĞƉĂŶĐŝĞƐŽŶƚŚĞƐƵďŵŝƚƚĞĚƉůĂŶƐ͘ Dƌ͘ƵŶŶƌĞƐƉŽŶĚĞĚǁŝƚŚĐůĂƌŝĨŝĐĂƚŝŽŶŽĨƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƉůĂŶŶŝŶŐƐƚĂĨĨ͖ĂŶĚĚĞǀĞůŽƉĞƌŝŶ ƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƐƵďŵŝƚƚĂůƐ͘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rial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$W [[1575,534,2388,591][12][B,I,][Arial]]WRUQH\WRSUHSDUHDUHVROXWLRQZLWK [[150,591,950,648][12][B,I,][Arial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rial Narrow]]7KHKDQGWRUHDFKIRU« [[2334,658,2342,698][8][,I,][Arial Narrow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¶VSURSHUW\WKDWGRQRW DSSO\WRRWKHUODQGVZLWKLQWKHQHLJKERUKRRGRUWKHVDPHFODVVRI]RQLQJGLVWULFW$Q\ODUJHEXLOGLQJLQWKH&'&)5 ]RQLQJGLVWULFWWKDWFRXOGDFFRPPRGDWHPXOWLSOHWHQDQWVZRXOGEHVXEMHFWWRWKHVDPHFXPXODWLYHVLJQDJHVWDQGDUGV %7KHH[WUDRUGLQDU\FRQGLWLRQVRUFLUFXPVWDQFHVDUHQRWGXHWRFLUFXPVWDQFHVXQLTXHWRWKHSURSHUW\QRWFUHDWHGE\ WKHODQGRZQHU7KHH[LVWLQJZDOOVLJQDJHRQWKHEXLOGLQJGRHVFRXQWWRZDUGVWKHPD[LPXPDOORZHGRIVTXDUH IHHWKRZHYHUHYHQLIWKHUHZDVQRH[LVWLQJZDOOVLJQDJHRQWKHEXLOGLQJWKHDSSOLFDQW¶VUHTXHVWZRXOGH[FHHGWKH DOORZHGDPRXQWE\DSSUR[LPDWHO\ VTXDUHIHHW &7KHJUDQWLQJRIWKLVYDULDQFHGRHVQRWDSSHDUWREHQHFHVVDU\WRRYHUFRPHSUDFWLFDOGLIILFXOWLHVLQFRPSO\LQJZLWK WKH]RQLQJRUGLQDQFHWRDOORZIRUWKHSURSHUW\WREHXVHGLQDUHDVRQDEOHPDQQHUQRWSHUPLWWHGE\WKHRUGLQDQFH7KH H[LVWLQJZDOOVLJQDJHIRUWKHEXLOGLQJGRHVQRWDSSHDUWRPHHWWKHPD[LPXPDOORZHGZDOOVLJQDJHRIVTXDUHIHHW 7KHDSSOLFDQWFDQSURSRVHDVPDOOHUDPRXQWRIZDOOVLJQDJHWRUHPDLQZLWKLQWKHVTXDUHIHHWUHTXLUHPHQW '7KHJUDQWLQJRIWKLVYDULDQFHUHTXHVWZRXOGQRWEHPDWHULDOO\GHWULPHQWDOWRWKHSXEOLFZHOIDUHRUPDWHULDOO\ LQMXULRXVWRRWKHUSURSHUWLHVLQWKHDUHDDQGZLOOQRWDOWHUWKHHVVHQWLDOFKDUDFWHURIWKHORFDOLW\7KHHVVHQWLDO FKDUDFWHURIWKH&HQWUDO%XVLQHVV'LVWULFW)ULQJH$UHD]RQLQJGLVWULFWDOORZVIRUDKLJKGHQVLW\RIFRPPHUFLDOXVHV ZLWKPRVWVLJQVWDQGDUGVW\SHVRI³&´RU³'´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¶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±VDZLWDVDJUDSKLF+H VWDWHGLQORRNLQJDWWKHDPRXQWRIVLJQDJHLQWKHVTXDUHIRRWDJHDURXQGVTXDUH IHHWFRXOGGRWKLVDVVLJQDJHUHPDLQLQJDVJUDSKLF+HVWDWHGWKH\FRXOGPDNHWKHOHWWHU µ:¶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±)ULQJH$UHD]RQLQJGLVWULFW DOORZVIRUDKLJKGHQVLW\RIFRPPHUFLDOXVHVZLWKPRVWV LJQVWDQGDUGVW\SHVRI³&´RU³'´ZKLFK DOORZVIRUPRUHVLJQDJHWKDQDUHDVRXWVLGHWKH&HQWUDO%XVLQHVV'LVWULFW 3DFNHW3J )E 3DJH &LW\RI5RFKHVWHU=RQLQJ%RDUGRI$SSHDOV 0HHWLQJ'DWH 'HFHPEHU 3DFNHW3J 3DFNHW3J )F 3DFNHW3J )F )G 59$53DJH 52&+(67(52/067('3/$11,1*'(3$570(17 &DPSXV'ULYH6(6XLWH5RFKHVWHU01 IRUWKH 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J )G 59$53DJH HQWLUHEXLOGLQJ6HFWLRQRIWKH5RFKHVWHU=RQLQJ2UGLQDQFHGHILQHVZDOOVLJQVDV³DVLJQ PRXQWHGSDUDOOHOWRDEXLOGLQJIDoDGHRURWKHUYH UWLFDOEXLOGLQJVXUIDFH´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¶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±)ULQJH$UHD]RQLQJGLVWULFW 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J )G 59$53DJH DOORZVIRUDKLJKGHQVLW\RIFRPPHUFLDOXVHVZLWKPRVWVLJQVWDQGDUGVW\SHVRI³&´RU³'´ZKLFK DOORZVIRUPRUHVLJQDJHWKDQDUHDVRXWVLGHWKH&HQWUDO%XVLQHVV'LVWULFW ( 7KHJUDQWLQJRIWKLVYDULDQFHLVQRWLQKDUPRQ\ZLWKWKHJHQHUDOSXUSRVHDQGLQWHQWRIWKH 5RFKHVWHU=RQLQJ2UGLQDQFH7KHSXUSRVHDQGLQWHQWRI6HFWLRQRIWKH5RFKHVWHU=RQLQJ 2UGLQDQFHLVWROLPLWWKHDPRXQWRIVLJQDJHE\VLJQW\SHGHSHQGLQJRQWKHXVHRIWKHEXLOGLQJ 6HFWLRQLVFOHDULQWKDWJUDSKLFVVLJQVDUHSHUPLWWHGDVDSRUWLRQRIHDFKZDOO6HFWLRQ 6XEG % RIWKH5RFKHVWHU=RQLQJ2UGLQDQFHVWDWHVWKDWWKHWRWDODUHDRIDOOVLJQVRID JLYHQVLJQW\SHVKDOOQRWH[FHHGWKHPD[LPXPDUHDIRUWKDWVLJQW\SHOLVWHGLQWKHWDEOHLQ6HFWLRQ 7KHSHUPLWWHGZDOOVLJQDJHIRUWKHEXLOGLQJLVFXPXODWLYHIRUWKHEXLOGLQJQRWIRUHDFK WHQDQWRUXVH ) 7KHWHUPVRIWKHYDULDQFHDUHJHQHUDOO\FRQVLVWHQWZLWKWKH&LW\¶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q 7KLVPDSSUHSDUHGE\WKH*,6'LYLVLRQ5RFKHVWHU2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW2OPVWHG&RXQW\LVQRWUHVSRQVLEOHIRU RPLVVLRQVRUHUURUVFRQWDLQHGKHUHLQ,IGLVFUHSDQFLHVDUHIRXQGZLWKLQWKLVPDSSOHDVHQRWLI\WKH*,6'LYLVLRQ5RFKHVWHU 3DFNHW3J 2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW&DPSXV'ULYH6(5RFKHVWHU01 3DFNHW3J )G D W R V H Q P Q L N 0 )G )G 3DFNHW3J )G 3DFNHW3J )G 5HIHUUDO$JHQF\&RPPHQWV $SSOLFDWLRQ1R 59$5([WHULRUVLJQDJH:LQRQD6WDWH8QLYHUVLW\ %XLOGLQJ6DIHW\ 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH &RXQW\3XEOLF:RUNV 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH )LUH'HSDUWPHQW 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH )LUH'HSDUWPHQW 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH *,6( 7KHUHDUHQRFRPPHQWVDWWKLVWLPHIURPWKH( $GGUHVVLQJ'LYLVLRQ6WDII /*8 1RFRPPHQWVUHJDUGLQJZHWODQGV 3DUNDQG5HFUHDWLRQ 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH 5RFKHVWHU3XEOLF:RUNV 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH 5382SHUDWLRQV'LYLVLRQ 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH 538:DWHU'LYLVLRQ 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH 7UDQVSRUWDWLRQ 7UDQVSRUWDWLRQ'LYLVLRQKDVQRFRPPHQW 3DFNHW3J $03DJHRI )G )URP /DZ%U\DQ 7R 3ODQQLQJ5HIHUUDOV 6XEMHFW 5( 5HTXHVWIRU&RPPHQWV59$5 'DWH 7XHVGD\1RYHPEHU 30 ZŽƵƚĞƐϰĂŶĚϲĐƵƌƌĞŶƚůLJƐĞƌǀĞ^ƌŽĂĚǁĂLJǀĞ͘ /ƚŝƐƉƌĞŵĂƚƵƌĞĂƚƚŚŝƐƚŝŵĞƚŽĐŽŵŵĞŶƚĂďŽƵƚĂŶLJƐƉĞĐŝĨŝĐƚƌĂŶƐŝƚŝŵƉƌŽǀĞŵĞŶƚƐŝŶĂŶLJƉĂƌƚŝĐƵůĂƌ ůŽĐĂƚŝŽŶƐ͕ďĞĐĂƵƐĞƚŚĞŝƚLJ͛ƐdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚWůĂŶŝƐƵŶĚĞƌǁĂLJ͘dŚĂƚĚŽĐƵŵĞŶƚ͕ĞdžƉĞĐƚĞĚƚŽ ďĞĐŽŵƉůĞƚĞĚŝŶƚŚĞǁŝŶƚĞƌŽĨϮϬϭϳ͕ǁŝůůŚĂǀĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂďŽƵƚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚƌĂŶƐŝƚ ƐĞƌǀŝĐĞ͕ŝŶĐůƵĚŝŶŐĂĚũƵƐƚŵĞŶƚƐŽĨƌŽƵƚĞƐ͕ƐƚĂŶĚĂƌĚƐĨŽƌĞƐƚĂďůŝƐŚŝŶŐƐƚŽƉƐĂŶĚƐŚĞůƚĞƌƐ͕ĞƚĐ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ ƌLJĂŶ>Ăǁ͕/W dƌĂŶƐŝƚWůĂŶŶĞƌͮZŽĐŚĞƐƚĞƌWƵďůŝĐdƌĂŶƐŝƚ >ĂǁΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀͻϱϬϳͲϯϮϴͲϮϰϴϱ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DE WƵďůŝĐtŽƌŬƐΘdƌĂŶƐŝƚKƉĞƌĂƚŝŽŶƐĞŶƚĞƌ ϰϯϬϬ ĂƐƚZŝǀĞƌZĚE ͮZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϲ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³+HULWDJH3UHVHUYDWLRQ6LWH´ PHDQVDQ\EXLOGLQJVWUXFWXUHODQGGLVWULFWRUREMHFWWKDWVDWLVILHVWKHFULWHULDIRXQGDW VHFWLRQ % %+HULWDJH3UHVHUYDWLRQ&RPPLVVLRQ(VWDEOLVKHG6XEGLYLVLRQ 7KHUHLVKHUHE\HVWDEOLVKHGD&LW\RI5RFKHVWHU+HULWDJH3UHVHUYDWLRQ&RPPLVVLRQ ³&RPPLVVLRQ´ 6XEG7KH&RPPLVVLRQVKDOOFRQVLVWRIYRWLQJPHPEHUVWREHQRPLQDWHGE\ WKH0D\RUDQGDSSRLQWHGE\WKH&RPPRQ&RXQFLO ³&RXQFLO´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¶VOLVWLQJRIVLWHV UHFRPPHQGHGIRUGHVLJQDWLRQDV+HULWDJH3UHVHUYDWLRQ6LWHVWKH0D\RUDQG&RXQFLOVKDOO KROGDSXEOLFKHDULQJWRUHFHLYHSXEOLFLQSXWIURPSXEOLFDQGWKHVLWHV¶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Ì Ì Ì Ì Ì 'HFHPEHU $DURQ5HHYHV$VVLVWDQW&LW\$GPLQLVWUDWRU &LW\RI5RFKHVWHU WK6WUHHW6(5RRP 5RFKHVWHU01 5H 'D\V,QQ3URSHUW\$VVHVVPHQW5(9 $DURQă 3HURXUFRQYHUVDWLRQVZHKDYHSUHSDUHGWKLVUHYLVHGSURSRVDOIRU\RXUFRQVLGHUDWLRQ7KH&LW\RI 5RFKHVWHUKDVUHTXHVWHGDSURSRVDOIRUDVVLVWLQJZLWKWKH'D\V,QQSURMHFW7KH&LW\ZRXOGOLNHWRFRQGXFW D%XLOGLQJ&RQGLWLRQ$VVHVVPHQWRIWKHSURSHUW\DVZHOODVREWDLQDQREMHFWLYHWKLUGSDUW\UHYLHZRIWKRVH SRUWLRQVRIWKHGHYHORSHU¶VSHQGLQJSURSRVDODVLWUHJDUGVWKLVEXLOGLQJ 6: &23(2)25. 2SWLRQ2QH 5HYLHZRI'HYHORSHU¶VLQ IRUPDWLRQSHUWDLQLQJWR'D\V,QQEXLOGLQJ 5HYLHZRIFRQVWUXFWLRQIHDVLELOLW\GRFXPHQWVDVVXEPLWWHG 5HYLHZRIKLVWRULFDOLQIRUPDWLRQDVVXEPLWWHG *HQHUDOUHYLHZRIILQDQFLDOIHDVLELOLW\LQIRUPDWLRQDVVXEPLWWHG7KLVPD\LQFOXGHHYDOXDWLRQE\DQ RXWVLGHFRQVWUXFWLRQFRVWDQDO\VW $VVHPEO\DQGUHYLHZRIDSSURSULDWHEDFNJURXQGLQIRUPDWLRQDVUHTXLUHGWRHYDOXDWHWKHSURSRVDO &'*ZLOOYLVLWWKHEXLOGLQJRQFHIRUUHYLHZRIFRQGLWLRQVRQVLWH &'*WRSURYLGHRSLQLRQDQGFRPPHQWDU\UHJDUGLQJWKHVXEPLWWHGPDWHULDO )E Ì Ì Ì 'HWDLOHG%XLOGLQJ&RQGLWLRQ$VVHVVPHQW 'HWDLOHGUHYLHZRIH[LVWLQJEXLOGLQJăVWUXFWXUHHQYHORSHLQWHULRUPHFKDQLFDODQGHOHFWULFDO LQIUDVWUXFWXUHDQGVLWHFRQGLWLRQV 5HYLHZRIKLVWRULFDOLQIRUPDWLRQDYDLODEOHIRUWKHSURSHUW\ 5HYLHZRIFXUUHQWFRGHVWRGHWHUPLQHFRPSOLDQFHIRUFXUUHQWRFFXSDQFLHVXVHV *HQHUDOUHYLHZRIILQDQFLDOLPSOLFDWLRQVRIGHIHUUHGPDLQWHQDQFHLVVXHVLIDQ\ $VVHPEO\DQGUHYLHZRIDSSURSULDWHEDFNJURXQGLQIRUPDWLRQDVUHTXLUHG &'*ZLOOYLVLWWKHEXLOGLQJDVUHTXLUHGIRUUHYLHZRIFRQGLWLRQVRQVLWH &'*WRSURYLGH%XLOGLQJ&RQGLWLRQ$VVHVVPHQWUHSRUWZLWKRSLQLRQVDQGFRPPHQWDU\UHJDUGLQJ WKHEXLOGLQJ¶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x 2SWLRQ2QHă (VWLPDWHGWLPH ZHHNVWRFRPSOHWH7RWDOVWDIIWLPHLVHVWLPDWHGDWăKRXUV R )HH5DQJH 59,&(6 &RPSHQVDWLRQIRUDXWKRUL]HG$GGLWLRQDO6HUYLFHVZLOOEHFRPSXWHGRQD7LPHDQG0DWHULDOV%DVLV DFFRUGLQJWRRXU+RXUO\5DWH6FKHGXOH 5( (,0%856$%/(;3(16(6 7KHIROORZLQJLWHPVRIGLUHFWQRQVDODU\H[SHQVHV LIDSSOLFDEOH ZLOOEHELOOHGDWRXUFRVW $XWRPRELOHH[SHQVHVIRUYHKLFOHVLQFOXGLQJPLOHDJHSDUNLQJRUXVHRIUHQWDOFDU 3XUFKDVHRIVSHFLDOL]HGVXSSOLHVLQFRQQHFWLRQZLWKWKHSURMHFW 3KRWRJUDSKVDQGSURFHVVLQJIRUSURMHFWUHFRUGV 3DFNHW3J )E Ì Ì Ì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¶IHHVLQFXUUHG // ,0,7$7,212),$%,/,7< ,WLVDJUHHGWKDW&ROODERUDWLYH'HVLJQ*URXS,QF¶VOLDELOLW\WR\RXIRUDQ\QDWXUHRIGDPDJHVDULVLQJRXWRI RUFDXVHGE\DQ\HUURURPLVVLRQQHJOLJHQFHVWULFWOLDELOLW\EUHDFKRIFRQWUDFWRUEUHDFKRIDQ\RWKHU REOLJDWLRQLQFRQQHFWLRQZLWKWKLV$JUHHPHQWVKDOOEHOLPLWHGWRDVXPQRWWRH[FHHGRUWKH DPRXQWRI$(IHHVUHFHLYHGSXUVXDQWWRWKLV$JUHHPHQWZKLFKHYHULVJUHDWHUDQGWKDW\RXZLOODFFHSW WKLVOLPLWHGDPRXQWDVIXOOVDWLVIDFWLRQRIDOOFODLPV\RXPD\DVVHUWIRUGDPDJHVDULVLQJIURP&ROODERUDWLYH 'HVLJQ*URXS¶VVHUYLFHV ,I\RXGHVLUHWRLQFUHDVHWKHOLPLWRI&ROODERUDWLYH'HVLJQ*URXS,QF¶VOLDE LOLW\IRUGDPDJHV&ROODERUDWLYH 'HVLJQ*URXS,QFZLOOZDLYHRULQFUHDVHWKLVOLPLWDWLRQRIOLDELOLW\XSRQ\RXUZULWWHQUHTXHVWZLWKLQ GD\VSURYLGHG\RXDJUHHWRSD\WKHSUHPLXPIRUDGGLWLRQDOLQVXUDQFHFRYHUDJHIRUWKHLQFUHDVHGOLDELOLW\ OLPLWV\RXUUHTXHVW $ &&(37$1&( ,IWKLVSURSRVDOLVDFFHSWDEOHWR\RXSOHDVHLQGLFDWHE\VLJQLQJEHORZDQGUHWXUQLQJDFRS\IRURXUUHFRUGV :HDUHSUHSDUHGWREHJLQWKLVSURMHFWLPPHGLDWHO\,I\RXKDYHDQ\TXHVWLRQVSOHDVHGRQRWKHVLWDWHWR FDOO 9HU\WUXO\\RXUV$XWKRUL]HGE\ &LW\RI5RFKHVWHU &ROODERUDWLYH'HVLJQ*URXS,QFÌ :LOOLDP'+LFNH\$,$/(('$36LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBB 3ULQFLSDO7LWOH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB F *DLO6FKZDU] 3DFNHW3J )E Ì Ì Ì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¶V6WDQGDUGVDQG*XLGHOLQHVIRU$UFKHRORJ\DQG+LVWRULF3UHVHUYDWLRQ>)HGHUDO5HJLVWHU )F VW6W1: VW6W1( VW$YH1: :&HQWHU6W (&HQWHU6W VW6W6( VW6W6: 3URMHFW/RFDWLRQ 6HUYLFH/D\HU&UHGLWV 6RXUFH (VUL'LJLWDO*OREH*HR(\H(DUWKVWDU *HRJUDSKLFV&1(6$LUEXV'686'$86*6$(;*HWPDSSLQJ$HURJULG,*1 ,*3VZLVVWRSRDQGWKH*,68VHU&RPPXQLW\ [[150,2562,394,2596][7][,I,][Arial]]6RXUFH *URXS [[2023,2567,2459,2600][7][,I,][Arial Narrow]]0DS3URGXFHGE\*URXS +RWHO&DUOWRQ 3URMHFW/RFDWLRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\ (YDOXDWLRQ [[150,2840,868,2887][10][,I,][Arial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imes New Roman]] VW [[298,627,482,679][11][B,I,][Times New Roman]]/RFDWLRQ [[483,627,495,680][11][,,][Times New Roman]] [[495,627,553,680][11][,,][Times New Roman]] [[572,627,584,680][11][,,][Times New Roman]] [[584,627,735,680][11][,,][Times New Roman]]$YHQXH [[735,627,812,680][11][,,][Times New Roman]]1: [[812,627,835,680][11][,,][Times New Roman]] [[836,627,1019,680][11][,,][Times New Roman]]5RFKHVWHU [[1019,627,1031,680][11][,,][Times New Roman]] [[1031,627,1043,680][11][,,][Times New Roman]] [[1043,627,1198,680][11][,,][Times New Roman]]2OPVWHG [[1198,627,1210,680][11][,, ][Times New Roman]] [[1210,627,1444,680][11][,,][Times New Roman]]&RXQW\0LQ [[1444,627,1611,680][11][,,][Times New Roman]]QHVRWD7 [[1613,627,1682,680][11][,,][Times New Roman]]HGLQEURZQVL[ FRXUVHVWUHWFKHUERQG EULFN WHUUDFRWWD DQGZKLWHFRUUXJDWHGPHWDO7KH EXLOGLQJKDVDIODWURRIZLWKDSDUDSHWZDOODQG PHWDOFRSLQJ )LJXUHVDQG 7KHEXLOGLQJKDVWZRSULPDU\IDoDGHVRQHIDFLQJVRXWKDQGRQHIDFLQJ ZHVWWKDWKDYHVWRUHIURQWVSDFHVRQWKHILUVWVWRU\7KHVHDUHRFFXSLHGE\D3DQQHNRHNHQUHVWDXUDQWDQG WKHKRWHOOREE\7KHILUVWVWRU\RIWKHZHVWDQGVRXWKIDFLQJIDoDGHVIHDWXUHVQXPHURXVZRRGHQ VWRUHIURQWV EHWZHHQWKHVWRUHIURQWZLQGRZVDUHFROXPQVZLWKJUDQLWHEDVHVFODGZLWKGHFRUDWLYHWHUUD FRWWDSDQHOV$GHQWLOHGOLPHVWRQHVWULQJFRXUVHH[WHQGVDORQJWKHVRXWKDQGZHVWIDoDGHVEHWZHHQWKHILUVW DQGVHFRQGVWRULHV,QDGGLWLRQDWKLQIODWPHWDODZQLQJSURMHFWVRXWRYHUWKHVLGHZDONDORQJURXJKO\ WZRWKLUGVRIERWKWKHZHVWDQGVRXWKIDoDGHVDQGDER[FDQRS\LVORFDWHGRYHUWKHHQWUDQFHRQWKHZHVW IDoDGH$PHWDOFRUQLFHVXSSRUWHGE\PHWDOEUDFNHWVDQGDGRUQHGZLWKIHVWRRQVDQGURVHWWHVZUDSVDURXQG WKHWRSRIWKHEXLOGLQJRQWKHHDVWVRXWKDQGZHVWHOHYDWLRQV$QLQWHULRUEULFNFKLPQH\LVORFDWHGRQWKH QRUWKHQGRIWKHZHVWHUQSRUWLRQRIWKH8 DQH[WHULRUFKLPQH\FODGLQZKLWHFRUUXJDWHGPHWDOLVORFDWHG RQWKHQRUWKHQGRIWKHHDVWHUQSRUWLRQRIWKH8$Q/VKDSHGSHQWKRXVHFODGLQZKLWHFRUUXJDWHGPHWDOLV ORFDWHGRQWKHQRUWKSRWLRQRIWKHEXLOGLQJ¶VURRI )LJXUH 2UQDPHQWDWLRQRQWKHXSSHUVWRULHVRIWKH HDVWVRXWKDQGZHVWHOHYDWLRQVLQFOXGHVVWDFNERQGDQGVROGLHUFRXUVHEULFNDURXQGWKHZLQGRZV$ YHUWLFDOPHWDO³'D\V,QQ´VLJQWKDWH[WHQGVIURPWKHVHFRQGVWRU\WRWKHIRXUWKVWRU\ZUDSVDURXQGWKH VRXWKZHVWFRUQHURIWKHEXLOGLQJ7KHWZRED\VIURPWKHZHVWRQWKHQRUWKHOHYDWLRQRIWKHEXLOGLQJDUH SURMHFWHGDQGDQH[WHULRUPHWDOVWDLUFDVHLVORFDWHGRQWKHQRUWKHOHYDWLRQ 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ )LJXUH+RWHO&DUOWRQ)DFLQJ1RUWKHDVW )LJXUH6RXWKZHVW(OHYDWLRQ)DFLQJ1RUWKHDVW 7KHZHVWIDFLQJIDoDGHRIWKHEXLOGLQJFRQVLVWVRIILYHED\V )LJXUH )HQHVWUDWLRQRQWKHILUVWVWRU\ FRQVLVWVRIIRXUZRRGHQVWRUHIURQWZLQGRZVHFWLRQVDQGRQHHQWUDQFH(DFKVWRUHIURQWZLQGRZVHFWLRQ FRQVLVWVRIWKUHHIL[HGSODWHJODVVZLQGRZV7KHHQWUDQFHORFDWHGLQWKHVHFRQGED\IURPWKHQRUWK FRQVLVWVRIGRXEOHOHDIPHWDODQGJODVVGRRUVZLWKVLQJOHOLJKWJODVVVLGHOLJKWVDQGDWKUHHSDUWIL[HGJODVV WUDQVRP$EURZQPHWDOER[FDQRS\ZLWKD³'D\V,QQ´VLJQFRYHUVWKLVHQWUDQFH)HQHVWUDWLRQRQWKH VHFRQGWKURXJKILIWKVWRULHVFRQVLVWVRISDLUVRILGHQWLFDORQHRYHURQHGRXEOHKXQJYLQ\OZLQGRZVRQ 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ WKHQRUWKHUQWZRDQGVRXWKHUQWZRED\V)HQHVWUDWLRQRQWKHPLGGOHED\FRQVLVWVRIWKUHHRQHRYHURQH GRXEOHKXQJYLQ\OZLQGRZVZLWKWKHPLGGOHZLQGRZEHLQJVOLJKWO\ZLGHUWKDQWKHIODQNLQJZLQGRZV )LJXUH:HVW)DoDGH)DFLQJ(DVW 7KHVRXWKIDFLQJIDoDGHFRQVLVWVRIVHYHQED\V WKHIRXUWKED\RQWKHVHFRQGWKURXJKILIWKVWRULHVLV UHFHVVHGLQWKH8 )LJXUH )URPZHVWWRHDVWIHQHVWUDWLRQRQWKHILUVWED\RIWKHILUVWVWRU\FRQVLVWVRID VLQJOHOHDIPHWDODQGJODVVGRRUZLWKDIL[HGVLQJOHOLJKWWUDQVRPDQGWKUHHVLQJOHOLJKWSODWHJODVVVLGH OLJKWV7KHVHFRQGED\IHDWXUHVDVLQJOHSODWHJODVVGLVSOD\ZLQGRZLQDZRRGHQEXONKHDG7KHWKLUGED\ LQFOXGHVWZRSODWHJODVVZLQGRZVLQDZRRGHQEXONKHDG)HQHVWUDWLRQRQWKHIRXUWKED\RIWKHILUVWVWRU\ FRQVLVWVRIDVLQJOHOHDIPHWDODQGJODVVGRRUZLWKDILOOHGLQWUDQVRPDQGSODWHJODVVVLGHOLJKWVVHWLQ ZRRGHQEXONKHDGV7KHILIWKED\LQFOXGHVWZRSODWHJODVVZLQGRZVLQDZRRGHQEXONKHDG7KHVL[WKED\ IHQHVWUDWLRQFRQVLVWVRIDVLQJOHOHDIPHWDODQGJODVVGRRULQDUHFHVVHGHQWUDQFHZD\)HQHVWUDWLRQRQWKH VHYHQWKED\RIWKHILUVWVWRU\FRQVLVWVRIWZRSODWHJODVVZLQGRZVVHWLQDPHWDOEXONKHDG DIDEULFDZQLQJ LVSUHVHQWDERYHWKHVHZLQGRZV)HQHVWUDWLRQRQWKHVHFRQGWKURXJKILIWKVWRULHVRIWKHVRXWKIDo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rial]] 7KHQRUWKHOHYDWLRQRIWKHEXLOGLQJLVIDFHGLQZKLWHFRUUXJDWHGPHWDODQGLVURXJKO\GLYLGHGLQWRVHYHQ ED\V )LJXUH )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ )LJXUHKHSXUFKDVHGWKHEXLOGLQJZKLFKZDVORFDWHGDW6RXWK%URDGZD\DQG FRQWLQXHGWRRSHUDWHWKHEXVLQHVVXQWLO 2OPVWHG&RXQW\'HPRFUDW :LWKWKHSDVVDJHRIWKH WK $PHQGPHQWWRWKH8QLWHG6WDWHV&RQVWLWXWLRQLQ ZKLFKSURKLELWHGWKHVDOHRIDOFRKRO*UDVVOH ZDVIRUFHGWRH[SORUHRWKHUEXVLQHVVYHQWXUHV:KDWKHIRXQGZDVWKHQHHGIRUD³JRRGIDPLO\KRWHO´ 7KH5RFKHVWHU3RVW%XOOHWLQ )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ 7KHVWHDG\JURZWKRIWKH0D\R&OLQLFIURPLWVLQFHSWLRQDV6DLQW0DU\¶V+RVSLWDOLQ WKURXJKWKH HDUO\SRUWLRQRIWKHWZHQWLHWKFHQWXU\ZDVDFDWDO\VWIRUWKHGHYHORSPHQWRIKRVSLWDOLW\DQGVHUYLFH UHODWHGEXVLQHVVHVLQ5RFKHVWHU%\ RYHUSDWLHQWVZHUHYLVLWLQJWKH0D\R&OLQLFHYHU\\HDU .HLOORU1RUWRQ QRQH[WDQW +RWHO5RPPHO QRQH[WDQW WK QRUWKZHVWFRUQHURI6%URDGZD\DQG6WUHHW6: +RWHO0DUWLQ QRQH[WDQW &ODWRQ+RWHO )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ *DXJHU.RUVPR&RQVWUXFWLRQ&RPSDQ\WR&KDUOHV*UDVVOH ,QODWH6HSWHPEHURI H[FDYDWLRQIRU WKHEXLOGLQJ¶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¶VKHDOWKFDUHVHUYLFHV7KHDUHD LPPHGLDWHO\VXUURXQGLQJWKH+RWHO&DUOWRQLQFOXGHGUHWDLOEXLOGLQJVOLJKWLQGXVWULDOEXLOGLQJVVXFKDV JDUDJHVDQGVPDOOOXPEHU\DUGVKRWHOVDQGURRPLQJKRXVHVDQGWKHDIRUHPHQWLRQHGKRVSLWDOV 6DQERUQ 0DS&RPSDQ\ )LJXUH6RXWKZHVW(OHYDWLRQ)DFLQJ1RUWKHDVWF 01+6F 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ )LJXUH 6RXWKZHVW(OHYDWLRQ)DFLQJ1RUWKHDVW &DODYDQR $WWKHWLPHRILWVFRQVWUXFWLRQWKH+RWHO&DUOWRQZDVVDLGWREHWKH³ODWHVWZRUGLQKRWHOFRQVWUXF WLRQDQG ILQLVKLQJ´DQGZDVH[SHFWHGWR³SURYHWRWKHWUDQVLHQWSRSXODWLRQDZRQGHUIXOO\FRQYHQLHQWDQG FRPIRUWDEOHWHPSRUDU\KRPH´ 7KH5RFKHVWHU'DLO\3RVWDQG5HFRUG E 7KHKRWHO¶VXSSHUIORRUV HDFKFRQVLVWHGRIURRPVDOOZLWKDQH[WHULRUZDOODQGLWVLQWHULRUERDVWHGDOREE\IORRURI.DVRWD 0DUEOHZDOOILQLVKLQJVDQGIXUQLWXUHRIPDKRJDQ\DQG³EHDXWLIXOUXJV´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¶VILUVWVWRU\KRXVH G+DUJHVKHLPHU¶VGUXJVWRUH 7KH 5RFKHVWHU'DLO\3RVWDQG5HFRUG E 7KH5RFKHVWHU'DLO\3RVWDQG5HFRUG G 7KHIROORZLQJ 0DUFKWKHKRWHO¶VFDIp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¶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¶ZLIH/DXUDDQGWKHLUVRQV3DXODQG &DUOWRQ ZKRWKHKRWHOZDVQDPHGDIWHU WRRNRYHURZQHUVKLSRIWKHKRWHO 7KH5RFKHVWHU3RVW%XOOHWLQ 7KH5RFKHVWHU3RVW%XOOHWLQ F 3DXO*UDVVOHZDVERUQRQ0D\ LQ5RFKHVWHU 7KURXJKRXWKLVOLIH3DXO*UDVVOHZDVDFWLYHLQORFDOSROLWLFV KHVHUYHGIRXUWHUPVDV5RFKHVWHU¶VPD\RU IURP WR FRUQHURIWKH 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ EXLOGLQJEXWUHDGLQJ³&DUOWRQ+RWHO´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imes New Roman]]WKH&LW\ [[617,1565,1100,1618][11][,I,][Times New Roman]]WKH6WDWHRU8QLWHG6WDWHV [[1100,1565,1112,1618][11][,I,][Times New Roman]] 7KH+RWHO&DUOWRQHPERGLHVWKHLQIOXHQFHRIWKH0D\R&OLQLFRQWKHJURZWKDQGGHYHORSPHQWRI 5RFKHVWHULQWKH VDQG V,QDGGLWLRQWRWKHFRPELQDWLRQKRVSLWDOKRWHOIDFLOLWLHVRIWKH .DKOHU&RUSRUDWLRQVHYHUDOVPDOOHUKRWHORQO\EXLOGLQJVZHUHGHYHORSHGE\LQGHSHQGHQWRZQHUV LQWKH VDQG VLQGRZQWRZQ5RFKHVWHU WKH+RWHO&DUOWRQLVRQHVXFKH[DPSOH7KHVH KRWHOVVXSSOHPHQWHGWKH.DKOHU&RUSRUDWLRQ¶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imes New Roman]]% [[414,362,427,415][11][,I,][Arial]] [[448,362,1414,415][11][,I,][Times New Roman]],WVORFDWLRQDVDSODFHRIDVLJQLILFDQWKLVWRULFHYHQW [[1417,362,1429,415][11][,I,][Times New Roman]] 5HVHDUFKKDVQRW\LHOGHGDQ\LQIRUPDWLRQUHJDUGLQJDQ\HYHQWVVLJQLILFDQWWRWKHKLVWRU\RI 5RFKHVWHUDWWKLVSURSHUW\ [[375,615,417,668][11][,I,][Times New Roman]]& [[417,615,430,668][11][,I,][Arial]] [[448,615,1822,668][11][,I,][Times New Roman]],WVORFDWLRQZLWKLQDQGFRQWULEXWLRQDVDQHOHPHQWRIDQ/DQGPDUN'L VWULFW [[1823,615,1847,668][11][,,][Times New Roman]] [[1847,615,1859,668][11][,,][Times New Roman]] 7KH+RWHO&DUOWRQLVQRWORFDWHGZLWKDQH[LVWLQJ/DQGPDUN'LVWULFW [[373,805,419,858][11][,I,][Times New Roman]]' [[420,805,433,858][11][,I,][Arial]] [[448,805,763,858][11][,I,][Times New Roman]],WVLGHQWLILFDWLRQ [[764,805,2198,858][11][,I,][Times New Roman]]ZLWKDSHUVRQZKRVLJQLILFDQWO\FRQWULEXWHGWRWKHFXOWXUHDQGGHYHORSPHQWRI [[450,868,608,921][11][,I,][Times New Roman]]WKH&LW\ [[609,868,621,921][11][,I,][Times New Roman]] %DVHGRQFXUUHQWO\DYDLODEOHUHVHDUFK&KDUOHV2*UDVVOHWKHGHYHORSHUDQGSURSULHWRURIWKH +RWHO&DUOWRQIURPLWVFRQVWUXFWLRQLQ XQWLOKLVGHDWKLQ DSSHDUVWRKDYHEHHQD VXFFHVVIXO5RFKHVWHUEXVLQHVVPDQ+RZHYHUKLVEXVLQHVVYHQWXUHVGRQRWDSSHDUWRKDYHJRQH DERYHDQGEH\RQGWKRVHRIRWKHUFLYLFDQGEXVLQHVVOHDGHUVRIKLVWLPH$GGLWLRQDOO\DOWKRXJK *UDVVOH¶VGHYHORSPHQWDQGRSHUDWLRQRIWKH+RWHO&DUOWRQFUHDWHGDUHVSHFWHGFRQVLVWHQWEXVLQHVV SUHVHQFHLQGRZQWRZQ5RFKHVWHULWZDVQHLWKHUDXQLTXHQRUUDUHDFKLHYHPHQWDVWKHUHZHUH VHYHUDORWKHUVLPLODULQGHSHQGHQWO\RZQHGDQGRSHUDWHGHVWDEOLVKPHQWVGRZQWRZQ6KRXOG IXUWKHULQIRUPDWLRQUHJDUGLQJ&KDUOHV2*UDVVOHDQGKLVFRQWULEXWLRQVWR5RFKHVWHUDQGWKH KRWHOKRVSLWDOLW\LQGXVWU\EHIRXQG*UDVVOH FRXOGEHUHHYDOXDWHG &KDUOHV¶VRQ3DXOWRRNRYHURZQHUVKLSRIWKHKRWHOXSRQKLVIDWKHU¶VGHDWKDQGUDQLWXQWL OWKH *UDVVOHIDPLO\VROGLWLQ )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ [[373,299,413,352][11][,I,][Times New Roman]]) [[414,299,427,352][11][,I,][Arial]] [[448,299,507,352][11][,I,][Times New Roman]],WV [[508,299,2146,352][11][,I,][Times New Roman]]LGHQWLILFDWLRQDV WKHZRUNRIDQDUFKLWHFWRUPDVWHUEXLOGHUZKRVHLQGLYLGXDOHIIRUWVKDYH [[450,362,2226,415][11][,I,][Times New Roman]]LQIOXHQFHGWKHGHYHORSPHQWRIWKH&LW\RUKDYHFRQWULEXWHGWRWKHGHYHORSPHQWRIDQDWLRQDOO\RU [[450,425,723,478][11][,I,][Times New Roman]]LQWHUQDWLRQDOO\ [[723,425,738,478][11][,I,][Times New Roman]] [[738,425,1298,478][11][,I,][Times New Roman]]UHFRJQL]HGVW\OHRUPRYHPHQW [[1300,425,1312,478][11][,I,][Times New Roman]] 7KH+RWHO&DUOWRQZDVGHVLJQHGE\)+0RVVH0RVVH¶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imes New Roman]]* [[420,1248,433,1301][11][,I,][Arial]] [[448,1248,1618,1301][11][,I,][Times New Roman]],WVHPERGLPHQWRIHOHPHQWVRIDUFKLWHFWXUDOGHVLJQGHWDLOPD WH [[1620,1248,2115,1301][11][,I,][Times New Roman]]ULDORUFUDIWVPDQVKLSWKDW [[450,1311,1347,1364][11][,I,][Times New Roman]]UHSUHVHQWDVLJQLILFDQWDUFKLWHFWXUDOLQQRYDWLRQ [[1348,1311,1360,1364][11][,I,][Times New Roman]] 7KH+RWHO&DUOWRQGRHVQRWHPERG\DQ\VLJQLILFDQWDUFKLWHFWXUDOLQQRYDWLRQV7KHEXLOGLQJ¶V GHVLJQIROORZVWKHFRPPRQFKDUDFWHULVWLFVRIWKH,WDOLDQ5HQDLVVDQFH5HYLYDOVW\OHZKLFKLV FRPPRQO\IRXQGLQWKH8QLWHG6WDWHVDQGZDVRIWHQDSSOLHGWRFRPPHUFLDOEXLOGLQJV [[372,1628,419,1681][11][,I,][Times New Roman]]+ [[420,1628,433,1681][11][,I,][Arial]] [[448,1628,2163,1681][11][,I,][Times New Roman]],WVORFDWLRQVFDOHRURWKHUSK\VLFDOFKDUDFWHULVWLFVUHSUHVH QWLQJDQHVWDEOLVKHGDQGIDPLOLDU [[450,1691,1776,1744][11][,I,][Times New Roman]]YLVXDOIHDWXUHRUDQHLJKERUKRRGDGLVWULFWWKHFRPPXQLW\RUWKH&LW\ [[1778,1691,1790,1744][11][,I,][Times New Roman]] 7KH+RWHO&DUOWRQ¶VORFDWLRQLVUHSUHVHQWDWLYHRIWKHGRZQWRZQFRPPHUFLDODUHDDQGLWVKRWHODQG KRVSLWDOLW\LQGXVWU\DVVRFLDWHGZLWKWKH0D\R&OLQLF7KHVFDOHRIWKH+RWHO&DUOWRQLVDSSURSULDWH DQGFRQVLVWHQWZLWKRWKHUGRZQWRZQKRWHOVRIWKH VDQG V7KHSK\VLFDOFKDUDFWHULVWLFV RIWKH+RWHO&DUOWRQFDQEHVHHQHOVHZKHUHLQ5RFKHVWHUDVLWLVDFRPPRQHDUO\WZHQWLHWK FHQWXU\SHULRGUHYLYDOVW\OH$VVXFKWKH+RWHO&DUOWRQPHHWV&ULWHULRQ+IRULWVORFDWLRQDQG VFDOHZKLFKUHSUHVHQWWKHGRZQWRZQDUHDDQGIDPLOLDUYLVXDOIHDWXUHVRIWKH&LW\ [[298,2197,477,2249][11][B,I,][Times New Roman]],QWHJULW\ [[478,2197,490,2250][11][,I,][Times New Roman]] [[490,2197,915,2250][11][,,][Times New Roman]]7KH+RWHO&DUOWRQUHWDL [[916,2197,2208,2250] [11][,,][Times New Roman]]QVH[FHOOHQWLQWHJULW\RIORFDWLRQDVLWUHPDLQVRQLWVRULJLQDOVLWH7KH VHWWLQJDURXQGWKLVSURSHUW\KDVEHHQVRPHZKDWFRPSURPLVHGE\WKHUHPRYDORIFRPPHUFLDODQGOLJKW LQGXVWULDOEXLOGLQJVDQGVXEVHTXHQWFRQVWUXFWLRQRIPXOWLOHYHOSDUNLQJUDPSVWRWKHHDVWVRXWKDQG VRXWKZHVW WKHUHPRYDORIFRPPHUFLDOEXLOGLQJVDQGVXEVHTXHQWFUHDWLRQRIDVXUIDFHSDUNLQJORWGLUHFWO\ WRWKHQRUWK DQGWKHORVVRISRUWLRQVRIWKH&RORQLDO+RVSLWDOWRWKHZHVW+RZHYHUWKHSURSHUW\UHPDLQV LQDQXUEDQGRZQWRZQDUHDLQFORVHSUR[LPLW\WR0D\RIDFLOLWLHV7KHUHIRUHWKHSURSHUW\UHWDLQVIDLU LQWHJULW\RIVHWWLQJ 7KHLQWHJULW\RIGHVLJQPDWHULDOVDQGZRUNPDQVKLSKDVEHHQVOLJKWO\FRPSURPLVHGE\UHSODFHPHQW ZLQGRZVDQGGRRUVDVZHOODVWKHDGGLWLRQRIFRUUXJDWHGPHWDOVLGLQJRQWKHQRUWKHOHYDWLRQDQGDSRUWLRQ RIWKHHDVWHOHYDWLRQ7KHRULJLQDORQHRYHURQHZRRGZLQGRZVKDYHEHHQUHSODFHGZLWKRQHRYHURQH GRXEOHKXQJYLQ\OZLQGRZVWKRXJKDOOZLQGRZRSHQLQJVDSSHDUWRUHWDLQWKHLURULJLQDOVKDSHDQGVL]H 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ $VPRVWRIWKHZLQGRZVUHWDLQWKHRULJLQDOVL]HRIWKHRULJLQDOZLQGRZVWKHFKDQJHVPLQLPDOO\DIIHFWWKH LQWHJULW\RIGHVLJQ7KHUHSODFHPHQWZLQGRZPDWHULDOKRZHYHULVDPRGHUQUHSODFHPHQWDQGWKHUHIRUH DIIHFWVWKHLQWHJULW\RIPDWHULDOV$OOVWRUHIURQWZLQGRZVKDYHEHHQUHSODFHGZLWKSODWHJODVVWKH HQWUDQFHVUHSODFHGZLWKPHWDODQGJODVVGRRUV$VZLWKWKHZLQGRZVRQWKHXSSHUVWRULHVRIWKHEXLOGLQJ DOORIWKHILUVWVWRU\RSHQLQJVDSSHDUWRUHWDLQWKHLURULJLQDOVKDSHVL]HDQGORFDWLRQPLPLFNLQJWKH RULJLQDOVWRUHIURQWV7KHUHIRUHWKHVHDOWHUDWLRQVRQO\PLQLPDOO\DIIHFWWKHLQWHJULW\RIGHVLJQ7KH UHSODFHPHQWPDWHULDOVKRZHYHUDUHDPRGHUQUHSODFHPHQWDQGWKHUHIRUHDIIHFWWKHLQWHJULW\RIPDWHULDOV $OORSHQLQJVRQWKHILUVWVWRU\RULJLQDOO\KDGWUDQVRPV+RZHYHUE\WKHODWH VWKHWUDQVRPVDSSHDUWR KDYHEHHQILOOHGLQRUFRYHUHG 0+6F +LVWRULFDO&HQWHURI2OPVWHG&RXQW\F 6HYHUVRQ XFWHGD3KDVH,,DUFKLWHFWXUHKLVWRU\HYDOXDWLRQRIWKH+RWHO &DUOWRQ7KH*URXSUHFRPPHQGVWKDWWKH+RWHO&DUOWRQPHHWV&ULWHULD$DQG+XQGHUWKHSURSRVHG DPHQGPHQWWR5RFKHVWHU2UGLQDQFH %6HFWLRQ 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ 5()(5(1&(6&,7(' $PHULFDQ,QVWLWXWHRI$UFKLWHFWV>$,$@ )UHGHULFN+XUG0RVVHDSSOLFDWLRQIRUFRUSRUDWHPHPEHUVKLSLQWKH$PHULFDQ,QVWLWXWHRI $UFKLWHFWV)HEUXDU\ 2Q)LOHDWWKH0DQXVFULSWV'LYLVLRQ(OPHU/$QGHUVHQ/LEUDU\ 8QLYHUVLW\RI0LQQHVRWD0LQQHDSROLV0LQQHVRWD [[1090,827,1117,861][7][,I,][Times New Roman]]UG WKH&LW\RI5RFKHVWHU3URSHUW\5HFRUGV'HSDUWPHQW 5RFKHVWHU0LQQHVRWD %XLOGLQJ3HUPLW 2QILOHDWWKH&LW\RI5RFKHVWHU3URSHUW\5HFRUGV'HSDUWPHQW 5RFKHVWHU0LQQHVRWD 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ [[477,362,1300,415][11][,I,][Times New Roman]]5RFKHVWHU&RGHRI2UGLQDQFHV&KDSWHU % [[1302,362,1738,415][11][,I,][Times New Roman]] +HULWDJH3UHVHUYDWLRQ [[1739,362,2172,415][11][,,][Times New Roman]]5RFKHVWHU0LQQHVRWD [[2173,362,2185,415][11][,,][Times New Roman]] )UDPH5REHUW 0LQQHVRWD+LVWRULF3URSHUWLHV,QYHQWRU\)RUP 2/52& 2QILOHDWWKH0LQQHVRWD +LVWRULF3UHVHUYDWLRQ2IILFH6W3DXO0LQQHVRWD [[297,720,665,773][11][,I,][Times New Roman]]+HUDOG5HYLHZ7KH [[666,720,678,773][11][,,][Times New Roman]] [[678,720,1176,773][11][,,][Times New Roman]] *UDQG5DSLGV0LQQHVRWD [[1178,720,1190,773][11][,,][Times New Roman]] ³7KH2OG+RVSLWDO:LOO%HFRPH1HZ+RXVLQJ´(OHFWURQLFGRFXPHQW KWWS ZZZJUDQGUDSLGVPQFRPEXVLQHVVWKHROGKRVSLWDOZLOOEHFRPHQHZ KRXVLQJDUWLFOHBEEDGGH DI&DPSXV(OHFWURQLFGRFXPHQW KWWS ZZZPD\RFOLQLFRUJSDWLHQWYLVLWRUJXLGHPLQQHVRWDFOLQLFKRVSLWDOEXLOGLQJVPD\RFOLQLF KRVSLWDOPHWKRGLVWFDPSXVKLVWRU\DFFHVVHG1RYHPEHU 0F$OHVWHU9LUJLQLDDQG/HH [[494,2682,1163,2735][11][,I,][Times New Roman]]$)LHOG*XLGHWR$PHULFDQ+RXVHV [[1165,2682,1693,2735][11][,,][Times New Roman]]$OIUHG$.QRSI1HZ<RUN [[1694,2682,1706,2735][11][,,][Times New Roman]] [[1705,2682,1908,2735][11][,,][Times New Roman]]1HZ<RUN [[1910,2682,1922,2735][11][,,][Times New Roman]] 0F*KHH)ORUD [[477,2871,903,2924][11][,I,][Times New Roman]].QRZ5RFKHVWHU%HWWHU [[904,2871,2071,2924][11][,,][Times New Roman]]2QILOHDWWKH5RFKHVWHU3XEOLF/LEUDU\5RFKHVWHU0LQQHVRWD [[2073,2871,2085,2924][11][,,][Times New Roman]] 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ 0LQQHVRWD+LVWRULFDO6RFLHW\>01+6@ F +RWHO&DUOWRQ5RFKHVWHU1HJDWLYH1R $2QILOHDWWKH0LQQHVRWD+LVWRULFDO6RFLHW\ 6W3DXO0LQQHVRWD 0LQQHVRWD6WDWH+LVWRULF3UHVHUYDWLRQ2IILFH>6+32@ [[479,594,1548,647][11][,I,][Times New Roman]]*XLGHOLQHVIRU+LVWRU\$UFKLWHFWXUH3URMHFWVLQ0LQQHVRWD [[1550,594,2073,647][11][,,][Times New Roman]]2QILOHDWWKH6WDWH+LVWRULF [[2075,594,2087,647][11][,,][Times New Roman]] 3UHVHUYDWLRQ2IILFH6W3DXO0LQQHVRWD 1DWLRQDO3DUN6HUYLFH>136@ 6HFUHWDU\RIWKH,QWHULRU¶V6WDQGDUGVDQG*XLGHOLQHVIRU$UFKHRORJ\DQG+LVWRULF3UHVHUYDWLRQ [[448,910,760,963][11][,I,][Times New Roman]])HGHUDO5HJLVWHU [[760,910,772,963][11][,,][Times New Roman]] [[772,910,1043,963][11][,,][Times New Roman]] 2FWREHU5RFKHVWHU0LQQHVRWD ³,WDVFD+RVSLWDODW*UDQG5DSLGV0LQQHVRWD´-XO\5RFKHVWHU0LQQHVRWD D³+HUHDQG7KHUH´-XQH5RFKHVWHU0LQQHVRWD E³0DPPRWK&DIpIRUWKH&LW\LVWREH6WDUWHG 7R6HDW7ZR+XQGUHG)LIW\DW2QFH´ 6HSWHPEHU5RFKHVWHU0LQQHVRWD D³3RRO5RRP+RXU([WHQVLRQ7XUQHG'RZQ%\$OGHUPHQ´$XJXVW5RFKHVWHU0LQQHVRWD E³&DUOWRQ+RWHOLV5HDG\WR2SHQIRU(QWHUWDLQPHQWRI7UDQVLHQW3XEOLF9HU\6RRQ´ 6HSWHPEHU5RFKHVWHU0LQQHVRWD F³1R+RRGRR7KHUH´6HSWHPEHU5RFKHVWHU0LQQHVRWD 3DJH 3DFNHW3J )F +RWHO&DUOWRQ 3KDVH,,$UFKLWHFWXUH+LVWRU\(YDOXDWLRQ G+DUJHUVKHLPHU'UXJ6WRUH$GYHUWLVHPHQW2FWREHU5RFKHVWHU0LQQHVRWD ³7KH&DUOWRQ2SHQV7RGD\´0DUFK5RFKHVWHU0LQQHVRWD [[300,552,312,605][11][,I,][Times New Roman]] [[298,615,494,668][11][,I,][Times New Roman]]5RFKHVWHU [[493,615,577,668][11][,I,][Times New Roman]]3RVW [[576,615,591,668][11][,I,][Times New Roman]] [[589,615,829,668][11][,I,][Times New Roman]]%XOOHWLQ7KH [[829,615,841,668][11][,,][Times New Roman]] [[841,615,1268,668][11][,,][Times New Roman]] 5RFKHVWHU0LQQHVRWD [[1271,615,1283,668][11][,,][Times New Roman]] D [[1216,2387,2116,2440][11][,,][Times New Roman]]6DQERUQ0DS&RPSDQ\1HZ<RUN1HZ<RUN [[2119,2387,2131,2440][11][,,][Times New Roman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¶VJHQHUDOZHOIDUH7RWKLVHQGWKH+HULWDJH 3UHVHUYDWLRQ&RPPLVVLRQLVFKDUJHGZLWKUHVSRQVLELOLW\IRUIDFLOLWDWLQJWKH SUHVHUYDWLRQRI5RFKHVWHU¶VKHULWDJH7KHSXUSRVHVRIWKLVFKDSWHUDUHWR $6DIHJXDUGWKHKHULWDJHRIWKH&LW\E\HQFRXUDJLQJWKHSUHVHUYLQJ RISURSHUWLHVWKDWUHIOHFWHOHPHQWVRIWKHFLW\¶VFXOWXUDOVRFLDO HFRQRPLFSROLWLFDOYLVXDORUDUFKLWHFWXUDOKLVWRU\ %(QKDQFHWKH&LW\¶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¶VUL FKKHULWDJH 6XEG%\WKHDGRSWLRQRIWKLVFKDSWHUWKH&LW\LQWHQGVWRGUDZD UHDVRQDEOHEDODQFHEHWZHHQSULYDWHSURSHUW\ULJKWVDQGWKHSXEOLFLQWHUHVWLQ SUHVHUYLQJWKH&LW\¶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³$OWHU´RU³$OWHUDWLRQ´VKDOOPHDQDFKDQJHWRWKH H[WHULRURIDQH[LVWLQJ%XLOGLQJ6WUXFWXUHRUIHDWXUHWKDWPDWHULDOO\PRGLILHVLWV RULJLQDODSSHDUDQFHRUFRQVWUXFWLRQ 6XEG7KHWHUP³$VVLJQHG6WDII´VKDOOPHDQD PHPEHURIWKH&LW\¶V VWDIIGHVLJQDWHGWRVHUYHDVWKHVWDIIFRQWDFWSHUVRQIRUWKLVFKDSWHUDQGIRUWKH +HULWDJH3UHVHUYDWLRQ&RPPLVVLRQ 6XEG7KHWHUP³%XLOGLQJ´VKDOOPHDQDQ\6WUXFWXUHKDYLQJDURRI VXSSRUWHGE\FROXPQVRUZDOOVLQWHQGHGIRUWKHVKHOWHURUHQFORVXUHRISHUVRQVRU SURSHUW\:KHQURRIHGVWUXFWXUHVDUHVHSDUDWHGIURPHDFKRWKHUE\SDUW\ZDOOV KDYLQJQRRSHQLQJVIRUSDVVDJHHDFKSRUWLRQVRVHSDUDWHGVKDOOEHGHHPHGD VHSDUDWH%XLOGLQJ 6XEG7KHWHUP³&HUWLILFDWHRI(FRQRPLF+DUGVKLS´VKDOOPHDQDQ DSSURYDOLVVXHGSXUVXDQWWRVHFWLRQ % 6XEG7KHWHUP³&LW\´PHDQVWKH&LW\RI5RFKHVWHU0LQQHVRWD 6XEG )F PDWHULDOFRQVWLWXWLQJSDUWRIDVWUXFWXUHWKDWDIIHFWVWKHH[WHULRUDSSHDUDQFHRI WKHVWUXFWXUHRWKHUWKDQIRUSXUSRVHVRIRUGLQDU\PDLQWHQDQFHRUUHSDLUDVZHOO DVLQDGHTXDWHPDLQWHQDQFHRUDQ\RWKHUDFWLRQWKDWUHGXFHVWKHVWDELOLW\RU ORQJHYLW\RIDVWUXFWXUHRULPSDLUVLWVKLVWRULFRUDUFKLWHFWXUDOLQWHJULW\ 6XEG7KHWHUP³'HPROLWLRQ%\1HJOHFW´PHDQVWKHORQJWHUPQHJOHFW RIDKLVWRULFVWUXFWXUHWKDWFRQWULEXWHVWRDOHYHORIGLODSLGDWLRQVRVHYHUHWKDW UHKDELOLWDWLRQRIWKHVWUXFWXUHQRORQJHUVHUYHVDVDYLDEOHRSWLRQDQG'HPROLWLRQ PXVWEHFRQVLGHUHGRQDFFRXQWRIWKHSXEOLFKHDOWKVDIHW\DQGZHOIDUH 6XEG7KHWHUP³'HPROLWLRQ3HUPLW´VKDOOPHDQDEXLOGLQJSHUPLW WKDWDXWKRUL]HVWKHGHPROLWLRQRUUHPRYDORIDQH[LVWLQJ%XLOGLQJRU6WUXFWXUH IURPDVLWH7KLVSHUPLWLVLVVXHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI 0LQQHVRWD5XOH 6XEG7KHWHUP³'HVLJQDWHG3URSHUW\´VKDOOPHDQDSURSHUW\OLVWHG RQWKH,QYHQWRU\DQGIXUWKHUFDWHJRUL]HGDVHLWKHUD/DQGPDUN3URSHUW\ 3RWHQWLDO/DQGPDUN3URSHUW\RU/DQGPDUN'LVWULFW 6XEG7KHWHUP³+HULWDJH3UHVHUYDWLRQ3URJUDP´VKDOOPHDQDSODQ HVWDEOLVKHGE\WKH&LW\WKDWFRQWHPSODWHVDYLVLRQIRUWKH&LW\ VKLVWRULF SUHVHUYDWLRQSURJUDPVHWWLQJQHDUDQGORQJWHUPSULRULWLHVIRUWKHSURJUDPDQG LGHQWLILHVSURDFWLYHDQGLQQRYDWLYHVWUDWHJLHVIRUDFKLHYLQJWKHLGHQWLILHGJRDOV DQGREMHFWLYHV 6XEG7KHWHUP³+LVWRULF'DWD´VKDOOPHDQUHVHDUFKSDSHUVVXUYH\V DQGPDSVWKDWGHVFULEH5RFKHVWHU¶VDUFKLWHFWXUDODQGFXOWXUDOGHYHORSPHQW SDWWHUQVLQWKHFRQWH[WRIORFDOUHJLRQDODQGQDWLRQDOKLVWRU\ 6XEG7KHWHUP³,QWHJULW\´VKDOOPHDQWKHDELOLW\RIDSURSHUW\WR FRQYH\LWVVLJQLILFDQFHUHODWLYHWRWKHDVSHFWVRIORFDWLRQVHWWLQJGHVLJQ PDWHULDOVZRUNPDQVKLSDQGDVVRFLDWLRQ 6XEGWHUP³/DQGPDUN'LVWULFW´VKDOOPHDQDJHRJUDSKLFDOO\ GHILQDEOHDUHDSRVVHVVLQJLGHQWLILHGKLVWRULFDOO\VLJQLILFDQWFRQFHQWUDWLRQ OLQNDJHRUFRQWLQXLW\RID6LWH%XLOGLQJ6WUXFWXUHRU2EMHFWXQLWHGE\SDVW HYHQWVRUDHVWKHWLFDOO\E\SODQRUSK\VLFDOGHYHORSPHQW 6XEG 7KHWHUP³/DQGPDUN3URSHUW\´VKDOOPHDQDSURSHUW\ GHVLJQDWHGSXUVXDQWWRVHFWLRQ % 3DFNHW3J )F 6XEG7KHWHUP³/DQGPDUN3URSHUW\'HPROLWLRQ3HUPLW´RU³/3'3´ VKDOOPHDQDSHUPLWLVVXHGSXUVXDQWWRVHFWLRQ % 6XEG7KHWHUP³/DQG'HYHORSPHQW0DQXDO´VKDOOPHDQFKDSWHUV WKURXJKLQFOXVLYHRIWKH5RFKHVWHU&RGHRI2UGLQDQFHV 6XEG7KHWHUP³1RQ&RQWULEXWLQJ5HVRXUFH´VKDOOPHDQD%XLOGLQJ 6LWH6WUXFWXUHRU2EMHFWWKDWGRHVQRWFRQWULEXWHWRWKHKLVWRULFDUFKLWHFWXUDO TXDOLWLHVRUDUFKDHRORJLFDOYDOXHVIRUZKLFKD/DQGPDUN'LVWULFWLVFRQVLGHUHG VLJQLILFDQW 6XEG7KHWHUP³2EMHFW´VKDOOPHDQFRQVWUXFWLRQRWKHUWKDQD %XLOGLQJRU6WUXFWXUHWKDWDUHSULPDULO\DUWLVWLFLQQDWXUHRUVPDOOLQVFDOHDQG VLPSO\FRQVWUXFWHG,WPD\EHE\QDWXUHRUGHVLJQPRYDEOHEXWLWLVDVVRFLDWHG ZLWKDVSHFLILFVHWWLQJDQGHQYLURQPHQW 6XEG7KHWHUP³3RWHQWLDO/DQGPDUN3URSHUW\´VKDOOPHDQDSURSHUW\ GHVLJQDWHGSXUVXDQWWRVHFWLRQ % 6XEG7KHWHUP³5HKDELOLWDWLRQ´VKDOOPHDQPDNLQJD%XLOGLQJRU 6WUXFWXUHVRXQGDQGXVDEOHZLWKRXWDWWHPSWLQJWRUHVWRUHLWWRDSDUWLFXODUSHULRG DSSHDUDQFHZKLOHUHWDLQLQJWKHFKDUDFWHUGHILQLQJIHDWXUHV 6XEG7KHWHUP³5HORFDWLRQ´VKDOOPHDQPRYLQJD%XLOGLQJRU 6WUXFWXUHIURPLWVRULJLQDOKLVWRULFDOO\VLJQLILFDQWRUH[LVWLQJORFDWLRQWRDQRWKHU ORFDWLRQ 6XEGWLRQWRRUUHSUHVHQWDWLRQRIEURDG SDWWHUQVRIQDWLRQDOUHJLRQDORUORFDOKLVWRU\DUFKLWHFWXUHHQJLQHHULQJ DUFKDHRORJ\DQGFXOWXUH 6XEG7KHWHUP³6LWH´VKDOOPHDQWKHORFDWLRQRIDVLJQLILFDQWHYHQW 3DFNHW3J )F DSUHKLVWRULFRUKLVWRULFRFFXSDWLRQRUDFWLYLW\RUD%XLOGLQJRU6WUXFWXUHZKHWKHU VWDQGLQJUXLQHGRUYDQLVKHGZKHUHWKHORFDWLRQLWVHOISRVVHVVHVKLVWRULF FXOWXUDORUDUFKDHRORJLFDOYDOXHUHJDUGOHVVRIWKHYDOXHRIDQ\H[LVWLQJ6WUXFWXUH 6XEG7KHWHUP³6WDQGDUGV´VKDOOPHDQWKH6HFUHWDU\RIWKH,QWHULRU¶V 6WDQGDUGVIRU7UHDWPHQWRI+LVWRULF3URSHUWLHV 6XEG7KHWHUP³6WUXFWXUH´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¶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¶VKLVWRULFFKDUDFWHU/RVVRILQWHJULW\PXVWEH VXEVWDQWLDWHGZLWKSKRWRJUDSKLFGRFXPHQWDWLRQDQGD SK\VLFDOGHVFULSWLRQRIWKHSURSHUW\WKDWDGGUHVVHVUHOHYDQW LVVXHV RU 3DFNHW3J )F %7KHGHQLDORID'HPROLWLRQ3HUPLWZLOOUHVXOWLQDQ XQUHDVRQDEOHHFRQRPLFKDUGVKLSRQWKHDSSOLFDQWDV GHWHUPLQHGE\WKH&RXQFLOZLWKUHFRPPHQGDWLRQIURPWKH &RPPLVVLRQXVLQJWKHIROORZLQJFULWHULD 7KHSXEOLFVDIHW\DQGZHOIDUHUHTXLUHVWKHUHPRYDORID 6WUXFWXUHRU%XLOGLQJ DQG ,IWKHVWUXFWXUDOLQVWDELOLW\RUGHWHULRUDWLRQRID SURSHUW\LVGHPRQVWUDWHGWKURXJKDUHSRUWE\DQ DUFKLWHFWRUVWUXFWXUDOHQJLQHHUZKRPHHWV SURIHVVLRQDOTXDOLILFDWLRQVHVWDEOLVKHGE\WKH 6WDQGDUGV6XFKDUHSRUWPXVWFOHDUO\GHWDLOWKH SURSHUW\ VSK\VLFDOFRQGLWLRQUHDVRQVZK\ UHKDELOLWDWLRQLVQRWIHDVLEOHDQGFRVWHVWLPDWHVIRU UHKDELOLWDWLRQYHUVXVGHPROLWLRQ 6XEG,QVXEPLWWLQJD/3'3DSSOLFDWLRQWKHEXUGHQRISURRILVRQ WKHDSSOLFDQW,QUHYLHZLQJWKHDSSOLFDWLRQWKH&RPPLVVLRQDQG&RXQFLOPD\ FRQVLGHUHFRQRPLFKDUGVKLSEDVHGRQWKHIROORZLQJLQIRUPDWLRQ $&XUUHQWOHYHORIHFRQRPLFUHWXUQ %$PRXQWSDLGIRUWKHSURSHUW\GDWHRISXUFKDVHSDUW\IURP ZKRPSXUFKDVHGDQGUHODWLRQVKLSEHWZHHQWKHRZQHURI UHFRUGWKHDSSOLFDQWDQGSHUVRQIURPZKRPWKHSURSHUW\ ZDVSXUFKDVHG &$QQXDOJURVVDQGQHWLQFRPHIURPWKHSURSHUW\DQGWKH SUHYLRXVWKUHH\HDUV LWHPL]HGRSHUDWLQJDQGPDLQWHQDQFH H[SHQVHVIRUWKHSUHYLRXVWKUHH\HDUVDQGGHSUHFLDWLRQ GHGXFWLRQDQGDQQXDOFDVKIORZEHIRUHDQGDIWHUGHEW VHUYLFHLIDQ\GXULQJWKHVDPHSHULRG '5HPDLQLQJEDODQFHRQWKHPRUWJDJHRURWKHUILQDQFLQJ VHFXUHGE\WKHSURSHUW\DQGDQQXDOGHEWVHUYLFHVLIDQ\ GXULQJWKHSULRUWKUHH\HDUV (5HDOHVWDWHWD[HVIRUWKHSUHYLRXVIRXU\HDUVDQGDVVHVVHG YDOXHRIWKHSURSHUW\DFFRUGLQJWRWKHWZRPRVWUHFHQW DVVHVVHGYDOXDWLRQV )$OODSSUDLVDOVREWDLQHGZLWKLQWKHODVWWZR\HDUVE\WKH 3DFNHW3J )F RZQHURUDSSOLFDQWLQFRQQHFWLRQZLWKWKHSXUFKDVH ILQDQFLQJRURZQHUVKLSRIWKHSURSHUW\ *)RUPRIRZQHUVKLSRURSHUDWLRQRIWKHSURSHUW\ZKHWKHU VROHSURSULHWRUVKLSIRUSURILWRUQRWIRUSURILWFRUSRUDWLRQ OLPLWHGSDUWQHUVKLSMRLQWYHQWXUHRURWKHU +$Q\VWDWHRUIHGHUDOLQFRPHWD[UHWXUQVUHODWLQJWRWKH SURSHUW\IRUWKHODVWWZR\HDUV ,$Q\OLVWLQJRIWKHSURSHUW\IRUVDOHRUUHQWSULFHDVNHGDQG RIIHUVUHFHLYHGLIDQ\ZLWKLQWKHSUHYLRXVWZR\HDUV LQFOXGLQJWHVWLPRQ\DQGUHOHYDQWGRFXPHQWVUHJDUGLQJ $Q\UHDOHVWDWHEURNHURUILUPHQJDJHGWRVHOORUOHDVH WKHSURSHUW\ 5HDVRQDEOHQHVVRISULFHRUUHQWVRXJKWE\WKH DSSOLFDQW RU $Q\DGYHUWLVHPHQWVSODFHGIRUWKHVDOHRUUHQWDORIWKH SURSHUW\ -)HDVLELOLW\RIDOWHUQDWLYHXVHVIRUWKHSURSHUW\WKDWFRXOG HDUQDUHDVRQDEOHHFRQRPLFUHWXUQ .5HSRUWIURPDDUFKLWHFWRUVWUXFWXUDOHQJLQHHUZKRPHHWV SURIHVVLRQDOTXDOLILFDWLRQVHVWDEOLVKHGE\WKH6WDQGDUGVDV WRWKHVWUXFWXUDOVRXQGQHVVRIDQ\%XLOGLQJRQWKHSURSHUW\ DQGLWVVXLWDELOLW\IRU5HKDELOLWDWLRQ /&RVWHVWLPDWHVIRUWKHSURSRVHGFRQVWUXFWLRQDOWHUDWLRQ GHPROLWLRQRUUHPRYDODQGDQHVWLPDWHRIDQ\DGGLWLRQDO FRVWVWKDWZRXOGEHLQFXUUHGWRFRPSO\ZLWKWKHUHTXLUHPHQWV IRU5HKDELOLWDWLRQ 0(VWLPDWHGPDUNHWYDOXHRIWKHSURSHUW\ ,QLWVFXUUHQWFRQGLWLRQ $IWHUFRPSOHWLRQRIWKHSURSRVHGDOWHUDWLRQRU GHPROLWLRQ DQG $IWHUUHQRYDWLRQRIWKHH[LVWLQJSURSHUW\IRUFRQWLQXHG 3DFNHW3J )F XVH 1([SHUWWHVWLPRQ\RURSLQLRQRQWKHIHDVLELOLW\RI 5HKDELOLWDWLRQRUUHXVHRIWKHH[LVWLQJ6WUXFWXUHE\DQ DUFKLWHFWZKRPHHWVSURIHVVLRQDOTXDOLILFDWLRQVHVWDEOLVKHG E\WKH6WDQGDUGV 2'DWDSURYLGHGE\WKHSURSHUW\RZQHUVKRZLQJHFRQRPLF KDUGVKLS 6XEG$SURSHUW\RZQHUVKRXOGFRQGXFWURXWLQHPDLQWHQDQFHDQG PDMRUUHSDLUVRQD'HVLJQDWHG3URSHUW\LQRUGHUWRHQVXUHWKHLUSUHVHUYDWLRQ$V VXFKD&HUWLILFDWHRI+DUGVKLSFDQQRWEHLVVXHGWRDSURSHUW\RZQHUZKRKDV HQJDJHGLQ'HPROLWLRQE\1HJOHFW$GGLWLRQDOO\QRSHUVRQVKDOOFRPPLW'HPROLWLRQ E\1HJOHFW %'HVLJQDWLRQRI+LVWRULF3URSHUWLHV3RWHQWLDO/DQGPDUN 3URSHUWLHV6XEGLYLVLRQ7KH&RPPLVVLRQVKDOOFRPSLOHDOLVWRIRWKHUSURSHUWLHV WKDWKDYHQRWPHWWKHFULWHULDIRU/DQGPDUN3URSHUW\GHVLJQDWLRQEXWKDYH KLVWRULFRUSRWHQWLDOO\KLVWRULFVLJQLILFDQFHZLWKLQWKH&LW\DQGPD\EHFRQVLGHUHG HOLJLEOHIRU/DQGPDUNGHVLJQDWLRQDWDIXWXUHGDWH$OOVXFKSURSHUWLHVVKDOOEH GHVLJQDWHGDV3RWHQWLDO/DQGPDUN3URSHUW\LQWKH,QYHQWRU\$SURSHUW\RZQHU RID3RWHQWLDO/DQGPDUN3URSHUW\LVHQFRXUDJHGWRPHHWSURDFWLYHO\ZLWKWKH &RPPLVVLRQEHIRUHXQGHUWDNLQJGHYHORSPHQWSODQVWRUHFHLYHSUHOLPLQDU\ IHHGEDFNRQDSSURSULDWHGHYHORSPHQWDQGEHQHILWV 6XEG7REHHOLJLEOHIRUGHVLJQDWLRQRQWKH,QYHQWRU\DVD3RWHQWLDO /DQGPDUN3URSHUW\WKHLQGLYLGXDO%XLOGLQJ6LWH6WUXFWXUHRU2EMHFWRUD FROOHFWLRQWKHUHRIPXVWKDYHDGHPRQVWUDWHGTXDOLW\RIVLJQLILFDQFHDV GHWHUPLQHGE\WKHFULWHULDSURYLGHGLQVHFWLRQ %VXEG7KH&RPPLVVLRQ VKDOOGHWHUPLQHLIWKHSURSHUW\VKRXOGEHGHVLJQDWHGDVD3RWHQWLDO/DQGPDUN 3URSHUW\EDVHGRQWKHGHVLJQDWLRQFULWHULD 6XEG7KHSURSHUW\RZQHUWKH&RPPLVVLRQWKH&RPPRQ&RXQFLO RUDQ\PHPEHURIWKHJHQHUDOSXEOLFPD\ILOHDQDSSOLFDWLRQIRUGHVLJQDWLRQRID %XLOGLQJ'LVWULFW6LWH6WUXFWXUHRU2EMHFWDVD3RWHQWLDO/DQGPDUN3URSHUW\RQ WKH,QYHQWRU\7KHDSSOLFDWLRQVKDOOEHVXEPLWWHGWRWKH$VVLJQHG6WDIIIRU UHYLHZDQGUHFRPPHQGDWLRQ7KHDSSOLFDWLRQIRUWKHGHVLJQDWLRQRIDSURSHUW\ RUFROOHFWLRQRISURSHUWLHVVKDOOLQFOXGHWKHIROORZLQJ $7KHDSSOLFDEOHLQIRUPDWLRQUHTXLUHGE\WKLVVHFWLRQ %6LWHRU/DQGPDUN'LVWULFWERXQGDU\PDS &3URSHUW\RUGLVWULFWGHVFULSWLRQLQFOXGLQJQDUUDWLYHWH[W 3DFNHW3J )F SKRWRJUDSKVRURWKHUJUDSKLFPDWHULDOVWKDWGRFXPHQWLWV SK\VLFDOFKDUDFWHULVWLFV DQG ':ULWWHQGHVFULSWLRQRIKRZWKHSURSHUW\PHHWVWKHFULWHULDIRU GHVLJQDWLRQ %'D\1HJRWLDWLRQ3HULRG±/DQG8VH$SSOLFDWLRQV 6XEGLYLVLRQ7KHSXUSRVHRIWKH'D\QHJRWLDWLRQSHULRGLVPHHWZLWKWKH SURSHUW\RZQHUWRGLVFXVVWKH+HULWDJH3UHVHUYDWLRQ3URJUDPDQGEHQHILWVWKDW WKHSURSHUW\PD\EHHOLJLEOHWRUHFHLYHXSRQGHVLJQDWLRQDVD'HVLJQDWHG 3URSHUW\,IWKHRZQHURID3RWHQWLDO/DQGPDUN3URSHUW\VXEPLWVDODQGXVH DSSOLFDWLRQDQHJRWLDWLRQSHULRGRIXSWRGD\VVKDOOEHLQLWLDWHG7KH QHJRWLDWLRQSHULRGPD\EHH[WHQGHGDQDGGLWLRQDOGD\VXSRQDUHVROXWLRQ DGRSWHGE\WKH&RXQFLORUORQJHULIPXWXDOO\DFFHSWDEOHWRERWKWKH&RXQFLODQG WKHSURSHUW\RZQHU1RWKLQJKHUHLQVKDOOSUHYHQWWKH&LW\IURPUHYLHZLQJDQ\ ODQGXVHDSSOLFDWLRQRUEXLOGLQJSHUPLWDIIHFWLQJWKHVXEMHFWSURSHUW\GXULQJWKH GD\QHJRWLDWLRQSHULRG 6XEG:LWKLQWKHGD\QHJRWLDWLRQSHULRGWKHIROORZLQJVKDOO RFFXU $7KH$VVLJQHG6WDIIRURWKHU&LW\VWDIIVKDOORIIHUWRPHHW ZLWKWKHSURSHUW\RZQHUWRGLVFXVVWKH+HULWDJH3UHVHUYDWLRQ 3URJUDPDQGEHQHILWVWKDWWKHSURSHUW\PD\EHHOLJLEOHWR UHFHLYHXSRQGHVLJQDWLRQDVD/DQGPDUN3URSHUW\ %7KH$VVLJQHG6WDIIVKDOOPHHWZLWKWKH&RPPLVVLRQ UHJDUGLQJWKHSURSRVHGDSSOLFDWLRQDQGWKHQDWXUHRIWKH SURSHUW\7KHSURSHUW\RZQHUVKDOOEHSURYLGHGQRWLFHRI WKLVPHHWLQJ7KH&RPPLVVLRQVKDOOUHYLHZDSSURSULDWH KLVWRULFGDWDWRHYDOXDWHWKH,QWHJULW\RIWKHSURSHUW\XQGHU FRQVLGHUDWLRQDQGVKDOOSURYLGH&RXQFLOZLWKDQDVVHVVPHQW RIWKHSURSHUW\¶VFRQIRUPDQFHZLWKWKHGHVLJQDWLRQFULWHULD :KHQDQ\EHQHILWVDUHUHTXHVWHGE\WKHSURSHUW\RZQHUWKH &RPPLVVLRQVKDOODOVRHYDOXDWHKRZWKHGHVLJQDWLRQDQG DQ\GHYHORSPHQWWKDWLVFRQFXUUHQWO\SURSRVHGPHHWVWKH SROLF\REMHFWLYHVIRUWKH+LVWRULF3UHVHUYDWLRQ3URJUDP &7KH$VVLJQHG6WDIIVKDOOFRQIHUZLWKWKH&RXQFLOUHJDUGLQJ WKHSURSRVHGDSSOLFDWLRQDQGWKHQDWXUHRIWKHSURSHUW\WKH VWDII¶VDQGWKH&RPPLVVLRQ¶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¶VHOLJLELOLW\IRUGHVLJQDWLRQ7KH &RPPLVVLRQPD\DSSURYHGLVDSSURYHRUFRQWLQXHRIWKHDSSOLFDWLRQWRUHTXHVW DGGLWLRQDOLQIRUPDWLRQQHFHVVDU\WRPDNHDGHFLVLRQWRDSSURYHRUGHQ\ 6XEG,IDQDSSOLFDWLRQLVGHQLHGWKH$VVLJQHG6WDIIPHPEHUVRIWKH SXEOLFWKH&RPPLVVLRQRUWKH&RXQFLOPD\QRWILOHDUHDSSOLFDWLRQIRU GHVLJQDWLRQRIWKHVDPHSURSHUW\RUGLVWULFWRQWKH,QYHQWRU\IRUWZR\HDUVIURP WKHGDWHRIWKH&RXQFLOGLVDSSURYDO&RXQFLOPD\ZDLYHWKLVSURKLELWLRQ % +HULWDJH3UHVHUYDWLRQ3URSHUWLHV±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imes New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD ,GHQWLILFDWLRQ 6+32,QYHQWRU\1XPEHU 2/52& +LVWRULF1DPH +RWHO&DUOWRQ 5HYLHZDQG&RPSOLDQFH1XPEHU &XUUHQW1DPH'D\V,QQ3DQQHNRHNHQ.LWFKHQ'HVLJQ6WXGLR )RUP 1HZRU8SGDWHG 8SGDWHG )LHOG 'HVFULSWLRQ $GGUHVV$9(1: /LQHDU)HDWXUH"1R &LW\7ZS 5RFKHVWHU +3&6WDWXV 1RW'HVLJQDWHG &RXQW\2OPVWHG 5HVRXUFH7\SH%XLOGLQJ +RWHO /RFDWLRQ $UFKLWHFW%XLOGHU(QJLQHHU)+0RVVH 7ZSHHQWUDQFHRQWKHZHVWIDoDGH$PHWDOFRUQLFHVXSSRUWHG E\PHWDOEUDFNHWVDQGDGRUQHGZLWKIHVWRRQVDQGURVHWWHVZUDSVDURXQGWKHWRSRIWKHEXLOGLQJRQWKHHDVWVRXWKDQGZHVW HOHYDWLRQV$QLQWHULRUEULFNFKLPQH\LVORFDWHGRQWKHQRUWKHQGRIWKHZHVWHUQSRUWLRQRIWKH8 DQH[WHULRUFKLPQH\FODGLQ ZKLWHFRUUXJDWHGPHWDOLVORFDWHGRQWKHQRUWKHQGRIWKHHDVWHUQSRUWLRQRIWKH8$Q/VKDSHGSHQWKRXVHFODGLQZKLWH FRUUXJDWHGPHWDOLVORFDWHGRQWKHQRUWKSRWLRQRIWKHEXLOGLQJ¶VURRI2UQDPHQWDWLRQRQWKHXSSHUVWRULHVRIWKHHDVWVRXWKDQG ZHVWHOHYDWLRQVLQFOXGHVVWDFNERQGDQGVROGLHUFRXUVHEULFNDURXQGWKHZLQGRZV$YHUWLFDOPHWDO³'D\V,QQ´VLJQWKDWH[WHQGV IURPWKHVHFRQGVWRU\WRWKHIRXUWKVWRU\ZUDSVDURXQGWKHVRXWKZHVWFRUQHURIWKHEXLOGLQJ7KHWZRED\VIURPWKHZHVWRQWKH QRUWKHOHYDWLRQRIWKHEXLOGLQJDUHSURMHFWHGDQGDQH[WHULRUPHWDOVWDLUFDVHLVORFDWHGRQWKHQRUWKHOHYDWLRQ 7KHZHVWIDFLQJIDoDGHRIWKHEXLOGLQJFRQVLVWVRIILYHED\V)HQHVWUDWLRQRQWKHILUVWVWRU\FRQVLVWVRIIRXUZRRGHQVWRUHIURQW ZLQGRZVHFWLRQVDQGRQHHQWUDQFH(DFKVWRUHIURQWZLQGRZVHFWLRQFRQVLVWVRIWKUHHIL[HGSODWHJODVVZLQGRZV7KHHQWUDQFH ORFDWHGLQWKHVHFRQGED\IURPWKHQRUWKFRQVLVWVRIGRXEOHOHDIPHWDODQGJODVVGRRUVZLWKVLQJOHOLJKWJODVVVLGHOLJKWVDQGD [[194,3096,404,3139][9][B,I,][Times New Roman]]2/52& 3DFNHW3J )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD WKUHHSDUWIL[HGJODVVWUDQVRP$EURZQPHWDOER[FDQRS\ZLWKD³'D\V,QQ´VLJQFRYHUVWKLVHQWUDQFH)HQHVWUDWLRQRQWKH VHFRQGWKURXJKILIWKVWRULHVFRQVLVWVRISDLUVRILGHQWLFDORQHRYHURQHGRXEOHKXQJYLQ\OZLQGRZVRQWKHQRUWKHUQWZRDQG VRXWKHUQWZRED\V)HQHVWUDWLRQRQWKHPLGGOHED\FRQVLVWVRIWKUHHRQHRYHURQHGRXEOHKXQJYLQ\OZLQGRZVZLWKWKHPLGGOH ZLQGRZEHLQJVOLJKWO\ZLGHUWKDQWKHIODQNLQJZLQGRZV 7KHVRXWKIDFLQJIDo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o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¶VKRPHWRZQRI5RFKHVWHU1HZ<RUN,Q5RFKHVWHUZDV QDPHGWKHFRXQW\VHDW'XHWRWKHWRZQ¶VORFDWLRQQHDUWKH=XPEUR5LYHUDQGLWVIDOOVDVZHOODVWKHFRQYHUJHQFHRIRYHUODQG VWDJHURXWHVLWJUHZUDSLGO\%\MXVWVL[\HDUVDIWHULWZDVIRXQGHGWKHWRZQ¶VSRSXODWLRQZDVUHVLGHQWV7HQ\HDUV ODWHUWKHSRSXODWLRQKDGDOPRVWWULSOHGWR UHVLGHQWV%\ SHRSOHFDOOHG5RFKHVWHUKRPH6FDQGLQDYLDQV,ULVK 6FRWVDQG*HUPDQVZHUHWKHPRVWFRPPRQHWKQLFJURXSVWRVHWWOHLQ5RFKHVWHU .DHGLQJHWDO 2QHRIWKHVH*HUPDQLPPLJUDQWVZDV&KDUOHV2*UDVVOH*UDVVOHZDVERUQLQ:XUWWHPEHUJ*HUPDQ\RQ)HEUXDU\ )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD 7KH5RFKHVWHU3RVW%XOOHWLQ VSLWDOSDWLHQWVDQGWKHLU YLVLWLQJUHODWLYHVLQDVLQJOHPXOWLSXUSRVHVWUXFWXUH'XULQJWKH VDQG VWKH.DKOHUIDPLO\RSHUDWHGWKUHHVXFK IDFLOLWLHV WKH&RORQLDO QRQH[WDQW WKH:RUUDOO QRQH[WDQW DQGWKH6WDQOH\ )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD 7KH+RWHO&DUOWRQZDVSURPLQHQWO\VLWXDWHGLQGRZQWRZQ5RFKHVWHUMXVWDFURVVWKHVWUHHWIURPWKH&RORQLDO+RVSLWDORSHUDWHG E\WKH.DKOHU&RUSRUDWLRQDQGURXJKO\DEORFNQRUWKHDVWRIWKH0D\R&OLQLFPDNLQJLWDFRQYHQLHQWORFDWLRQIRUJXHVWV DVVRFLDWHGZLWKWKHFLW\¶VKHDOWKFDUHVHUYLFHV7KHDUHDLPPHGLDWHO\VXUURXQGLQJWKH+RWHO&DUOWRQLQFOXGHGUHWDLOEXLOGLQJV OLJKWLQGXVWULDOEXLOGLQJVVXFKDVJDUDJHVDQGVPDOOOXPEHU\DUGVKRWHOVDQGURRPLQJKRXVHVDQGWKHDIRUHPHQWLRQHGKRVSLWDOV 6DQERUQ0DS&RPSDQ\ $WWKHWLPHRILWVFRQVWUXFWLRQWKH+RWHO&DUOWRQZDVVDLGWREHWKH³ODWHVWZRUGLQKRWHOFRQVWUXFWLRQDQGILQLVKLQJ´DQGZDV H[SHFWHGWR³SURYHWRWKHWUDQVLHQWSRSXODWLRQDZRQGHUIXOO\FRQYHQLHQWDQGFRPIRUWDEOHWHPSRUDU\KRPH´ 7KH5RFKHVWHU 'DLO\3RVWDQG5HFRUG E 7KHKRWHO¶VXSSHUIORRUVHDFKFRQVLVWHGRIURRPVDOOZLWKDQH[WHULRUZDOODQGLWVLQWHULRU ERDVWHGDOREE\IORRURI.DVRWD0DUEOHZDOOILQLVKLQJVDQGIXUQLWXUHRIPDKRJDQ\DQG³EHDXWLIXOUXJV´ 7KH5RFKHVWHU'DLO\ 3RVWDQG5HFRUG E 7KHEXLOGLQJ VQRWHG8VKDSHGSODQDOORZHGHDFKURRPWRKDYHDQH[WHULRUZLQGRZZKLFKSURYLGHG QDWXUDOOLJKW7KLV8VKDSHGSODQDSSHDUVWRKDYHEHHQXQLTXHLQGRZQWRZQ5RFKHVWHU 7KH+RWHO1RUWKHUQ+RWHO=XPEUR +RWHO1RUWRQ+RWHO5RPPHO+RWHO0DUWLQ&ODWRQ+RWHO+RWHO)UDQFLV$UWKXU+RWHODQG&DPSEHOO+RWHODOOKDGVTXDUHRU UHFWDQJXODUSODQV &DODYDQR 7KHRQO\RWKHUKRWHONQRZQWRKDYHDVLPLODUSODQZDVWKH&RORQLDO +RVSLWDOZKLFKZDVFRQVWUXFWHGRIWZR8VKDSHGFRXUW\DUGVEHWZHHQWKUHHZLQJV+RZHYHUWRGD\WKDWEXLOGLQJKDVEHHQ LQFRUSRUDWHGLQWRWKH0HWKRGLVW+RVSLWDODQGRQHRILWVZLQJVUHPRYHGVRWKDWWKH8VKDSHRIWKHEXLOGLQJLVQRORQJHUHYLGHQW 0D\R&OLQLF 7KH+RWHO&DUOWRQSUHVHQWO\KDVDQGKLVWRULFDOO\KDGUHWDLOVWRUHIURQWVRQWKHILUVWVWRU\:KHQWKHKRWHORSHQHGWKHVRXWKZHVW SRUWLRQRIWKHEXLOGLQJ¶VILUVWVWRU\KRXVHG+DUJHVKHLPHU¶VGUXJVWRUH 7KH5RFKHVWHU'DLO\3RVWDQG5HFRUG E 7KH 5RFKHVWHU'DLO\3RVWDQG5HFRUG G 7KHIROORZLQJ0DUFKWKHKRWHO¶VFDIp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¶VRSHQLQJ 7KH'DLO\3RVWDQG5HFRUG E ,Q KHEXLOGLQJ¶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¶ZLIH/DXUDDQGWKHLUVRQV3DXODQG&DUOWRQ ZKRWKHKRWHO ZDVQDPHGDIWHU WRRNRYHURZQHUVKLSRIWKHKRWHO 7KH5RFKHVWHU3RVW%XOOHWLQ 7KH5RFKHVWHU3RVW%XOOHWLQ F 3DXO *UDVVOHZDVERUQRQ0D\ LQ5RFKHVWHU7KURXJKRXWKLVOLIH3DXO*UDVVOHZDVDFWLYHLQORFDOSROLWLFV KHVHUYHGIRXU WHUPVDV5RFKHVWHU¶VPD\RUIURP WR )G [[325,155,2220,230][16][B,I,][Times New Roman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imes New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD DUFKHQWUDQFHVDQGZLQGRZVFODVVLFDOGHWDLOVVXFKDVFROXPQVDQGSLODVWHUVDURRIOLQHSDUDSHWRUEDOXVWUDGHDVWURQJGLYLVLRQRI IORRUVFUHDWHGE\HODERUDWHVWULQJFRXUVHVDQGDQDUFDGHGDQGUXVWLFDWHGJURXQGOHYHO 0F$OHVWHU 0F$OHVWHU /DUJHFRUSRUDWHRZQHG KRWHOVVXFKDVWKH+ROLGD\,QQDQG+RZDUG-RKQVRQEHFDPHPRUHSURPLQHQWLQ5RFKHVWHULQWKHSRVW:RUOG:DU,,\HDUV7KH VPDOOLQGHSHQGHQWO\RZQHGKRWHOVZHUHXQDEOHWRFRPSHWHZLWKWKHVHODUJHUKRWHOFKDLQVDQGDVDUHVXOWPDQ\RIWKHPFORVHG .DHGLQJHWDO )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD *UDVVOHZDVVLJQLILFDQWWRWKHFXOWXUHDQGGHYHORSPHQWRI5RFKHVWHUDVPD\RULWLVXQOLNHO\WKDWWKH+RWHO&DUOWRQZRXOGEHWKH EXLOGLQJWKDWEHVWGHPRQVWUDWHVKLVVLJQLILFDQFHDV5RFKHVWHU¶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¶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¶VGHVLJQIROORZVWKHFRPPRQ FKDUDFWHULVWLFVRIWKH,WDOLDQ5HQDLVVDQFH5HYLYDOVW\OHZKLFKLVFRPPRQO\IRXQGLQWKH8QLWHG6WDWHVDQGZDVRIWHQDSSOLHGWR FRPPHUFLDOEXLOGLQJV +,WVORFDWLRQVFDOHRURWKHUSK\VLFDOFKDUDFWHULVWLFVUHSUHVHQWLQJDQHVWDEOLVKHGDQGIDPLOLDUYLVXDOIHDWXUHRUDQHLJKERUKRRG DGLVWULFWWKHFRPPXQLW\RUWKH&LW\ 7KH+RWHO&DUOWRQ¶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imes New Roman]]2/52& 3DFNHW3J )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD RSHQLQJVRQWKHILUVWVWRU\RULJLQDOO\KDGWUDQVRPV+RZHYHUE\WKHODWH VWKHWUDQVRPVDSSHDUWRKDYHEHHQILOOHGLQRU FRYHUHG 0+6F +LVWRULFDO&HQWHURI2OPVWHG&RXQW\F 6HYHUVRQ 5HFRUGV'HSDUWPHQW5RFKHVWHU0LQQHVRWD )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD ³7KH2OG+RVSLWDO:LOO%HFRPH1HZ+RXVLQJ´(OHFWURQLFGRFXPHQWKWWS ZZZJUDQGUDSLGVPQFRPEXVLQHVVWKHROG KRVSLWDOZLOOEHFRPHQHZKRXVLQJDUWLFOHBEEDGGH DI\RIWKH,QWHULRU¶V6WDQGDUGVDQG*XLGHOLQHVIRU$UFKHRORJ\DQG+LVWRULF3UHVHUYDWLRQ)HGHUDO5HJLVWHU )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD 2OPVWHG&RXQW\'HPRFUDW ³*UDVVOH%X\V%XVLQHVV%ORFN´6HSWHPEHU5RFKHVWHU0LQQHVRWD 5RFKHVWHU'DLO\3RVWDQG5HFRUG7KH 5RFKHVWHU0LQQHVRWD FRPQHZVORFDOUHLWHUDSDUWPHQWV MSJLPDJHB )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD 6HYHUVRQ+DUROG )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD 3KRWR . ?5RFKHVWHU3UHVHUYDWL 3URSHUW\3KRWRJUDSK V )DFLQJ1: . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1( [[194,3096,404,3139][9][B,I,][Times New Roman]]2/52& 3DFNHW3J )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD . ?5RFKHVWHU3UHVHUYDWL )DFLQJ( . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1 [[194,3096,404,3139][9][B,I,][Times New Roman]]2/52& 3DFNHW3J )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1: . ?5RFKHVWHU3UHVHUYDWL )DFLQJ6: [[194,3096,404,3139][9][B,I,][Times New Roman]]2/52& 3DFNHW3J )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1( &DODYDQR . ?5RFKHVWHU3UHVHUYDWL +RWHO&DUOWRQ3RVWFDUG 6HYHUVRQ )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1(F +LVWRU\&HQWHURI2OPVWHG&R . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1( +LVWRU\&HQWHURI2OPVWHG&R [[194,3096,404,3139][9][B,I,][Times New Roman]]2/52& 3DFNHW3J )G [[325,155,2220,230][16][B,I,][Times New Roman]]0,11(627$$5&+,7(&785(+,6725<,19(1725<)250 3URMHFW 5RFKHVWHU3UHVHUYDWLRQ3ODQ ,QYHQWRU\ 5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD . ?5RFKHVWHU3UHVHUYDWL )DFLQJ1( +LVWRU\&HQWHURI2OPVWHG&R 0DS . ?5RFKHVWHU3UHVHUYDWL 3URSHUW\/RFDWLRQ0DS 2/52& [[194,3096,404,3139][9][B,I,][Times New Roman]]2/52& 3DFNHW3J )H )H G5F/ )H *%) *, # % ** **$ %+% %%&+ #2 )H *+), )H +%) & *+ +) :& *% %% )H ,%) $&% + $,#+ +, & * % )H -%) *** **$ %+& + )H .%) ** )&& & + &% *+&)0 *+), )H ,)) %+# * +0') )H &%*+),* )H &" ! /+ ) &).##*) ) ## % )H ')&+ )H )H % 05 ) *%& $ ) % )H $" !"! &++ +.&,# )H 206+&'/'7200(+/35-#4+0/#/&.'.$2#/'%06'2+/) '.06'#/&2'1-#%'#--'84'2+027+/&073#/&&0023 548+34+/)5+-&+/)4002' *'--'.0 4029 '.08+34+/)-'6#402 4#+27'--#/&+2'3%#1' 5%, 0+/4+/) 024*"#--2+%, '1-#%'.'/4 -- '702' *'--+2' 204'%4+0/ 934'. -- '702' *'---'%42+%#- 934'.3 -- '702' *'-- -5.$+/) 934'. 84'2+02"#-- *'2.#-!#102#22+02 -- '702' *'--! 934'.3 70 '7 4#+27'--37 *#(43 0.1-'4' '7 )H /%) & & )H ! !" #"# +## ), # % ** % # % %+ &- )##')&! )H GN 3DFNHW3J )H 0%) % %+$)" +*+, *5 ) +,)%&% (, +0 **, )H ) *# **) + #')& )$. + $&) # $ + + * &%+ / *+ % #&&)+& #&&) +. )H )H 1%) % #& $&# + &% )$ + &)+ *,! )H 52&+(67(5'(9(/230(17,//& , ZdK&d, /dzEKZd, z^/EE WW E/yϭ KE Wdηϭ ^/'EʹZ EKsd/KEK& y/^d/E'^dZhdhZ WĂŐĞϮϯ 3DFNHW3J 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, Ϯϱ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, Ϯϲ WĂŐĞ '(9(/230(17,//& 52&+(67(5 )H 52&+(67(5'(9(/230(17,//& , ZdK&d, /dzEKZd, z^/EE WW E/yϮ KE WdηϮ ^/'EʹKDW> d Z s >KWD EdK&d, ^/d ͬ DK>/d/KEK&z^/EE ;WZKWK^ WZK: dͿ WĂŐĞϮϳ 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, Ϯϴ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, K W U R 1 \ W L & Ϯϵ H WĂŐĞ K W I R W U D H + _ 7 1 ( '(9(/230(17,//& 0 3 2 / ( 9 ( ' ( 6 8 ' ( ; , 0 52&+(67(5 52&+(67(5'(9(/230(17,//& 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϬ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϭ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϮ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϯ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϱ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϰ ϯϲ WĂŐĞ '(9(/230(17,//& 52&+(67(5 )H 52&+(67(5'(9(/230(17,//& , ZdK&d, /dzEKZd, z^/EE WW E/yϯ KE Wdηϯ ^/'EʹE t s >KWD Edt/d,Z Ͳh^ K&z^/EE WĂŐĞϯϳ 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϴ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϯϵ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϰϬ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϰϭ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϰϮ WĂŐĞ '(9(/230(17,//& 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ϰϯ WĂŐĞ '(9(/230(17,//& 52&+(67(5 )H 52&+(67(5'(9(/230(17,//& , ZdK&d, /dzEKZd, z^/EE WW E/yϰ ^/d W,KdK^ WĂŐĞϰϰ 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, DŝĚĚůĞŽĨƵŝůĚŝŶŐ>ŽŽŬŝŶŐ^ŽƵƚŚ ϰϱ WĂŐĞ ,//& '(9(/230(17 sŝĞǁ>ŽŽŬŝŶŐEŽƌƚŚĞĂƐƚ tĞƐƚtĂůůŽĨ͞h͟ yd Z/KZͲ E>K^hZ 52&+(67(5 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ůĞǀĂƚŽƌKǀĞƌƌƵŶDĞƚĂůWĂŶĞů &ůƵĞ^ƚĂĐŬ ϰϲ WĂŐĞ DĞƚĂůWĂŶĞůŽǀĞƌŝŶŐhŶŬŶŽǁŶƌŝĐŬŽŶĚŝƚŝŽŶ DĞƚĂůŽƉŝŶŐΘZŽŽĨdĞƌŵŝŶĂƚŝŽŶ ,//& '(9(/230(17 yd Z/KZͲ E>K^hZ 52&+(67(5 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, /ŶĂĐĐĞƐƐŝďůĞWůĂƚĨŽƌŵĂƚZĞƐƚĂƵƌĂŶƚ ϱϳ WĂŐĞ ,//& tĂƚĞƌWĞŶĞƚƌĂƚŝŽŶĂƚZĞƐƚĂƵƌĂŶƚ '(9(/230(17 'ZKhE&>KKZ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, /ŶĐŽŶƐŝƐƚĞŶƚZŝƐĞƌƐ /ŶĂĚĞƋƵĂƚĞůĞĂƌĂŶĐĞ ϱϴ WĂŐĞ ,//& hŶĚĞƌƐŝnjĞĚ>ĂŶĚŝŶŐ hŶĚĞƌƐŝnjĞĚdƌĞĂĚ '(9(/230(17 ^d/Ztz^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, 'ƵĞƐƚZŽŽŵtĂƚĞƌWĞŶĞƚƌĂƚŝŽŶĨƌŽŵ džƚĞƌŝŽƌ tĂƐƚĞWŝƉŝŶŐ&ĂŝůƵƌĞtĂƚĞƌĂŵĂŐĞ ϱϵ WĂŐĞ 'ƵĞƐƚZŽŽŵtĂƚĞƌWĞŶĞƚƌĂƚŝŽŶĨƌŽŵ džƚĞƌŝŽƌ ,//& ,ĂůůǁĂLJtŝŶĚŽǁƐƐĞŵďůLJ '(9(/230(17 ,Kd >&>KKZ^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ĂƚŚƚƵď^ƉŽƵƚDŽĚŝĨŝĐĂƚŝŽŶ dLJƉŝĐĂůĂƚŚƌŽŽŵ&ůŽŽƌƌĞĂ ϲϬ WĂŐĞ ,//& EŽŶͲŽĚĞŽŵƉůŝĂŶƚ^ƚĞƉ '(9(/230(17 /ŶŽƉĞƌĂďůĞĂƚŚƚƵď 'h ^dd,ZKKD^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, tĂƚĞƌ^ƵƉƉůLJZĞƉůĂĐĞŵĞŶƚ tĂƚĞƌĂŵĂŐĞ ϲϭ WĂŐĞ ,//& tĂƚĞƌ^ƵƉƉůLJZĞƉůĂĐĞŵĞŶƚ tĂƚĞƌĂŵĂŐĞ '(9(/230(17 'h ^dd,ZKKD^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, dLJƉŝĐĂůĂƚŚƌŽŽŵ ϲϮ WĂŐĞ ,//& ĂƚŚƌŽŽŵ^ƚĞƉ '(9(/230(17 'h ^dd,ZKKD^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ůĞǀĂƚŽƌWƵůůĞLJ ϲϯ WĂŐĞ ůĞǀĂƚŽƌŽŽƌ,ĞĂĚZŽŽŵŝƐEŽŶͲŽŵƉůŝĂŶƚ ,//& '(9(/230(17 > sdKZ^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, 'ƵĞƐƚ>ĂƵŶĚƌLJǁŝƚŚ/ŶĂĚĞƋƵĂƚĞůĞĂƌĂŶĐĞ /ĐĞŝƐƉĞŶƐĞƌŝƐŶŽƚĐĐĞƐƐŝďůĞ ϲϱ WĂŐĞ ,//& EŽŶͲŽŵƉůŝĂŶƚZĂŵƉĂƚ>ĂƵŶĚƌLJ '(9(/230(17 ^ƚĂĨĨ>ŽƵŶŐĞ ,Kd >&>KKZ^ 52&+(67(5 ʹ /Ed Z/KZ 3DFNHW3J )H z^/EE , ZdK&d, /dzEKZd, ƐďĞƐƚŽƐtƌĂƉƉĞĚdĂŶŬƐĂŶĚWŝƉŝŶŐ EŽŶͲŽŵƉůŝĂŶƚ^ƚĂŝƌǁĂLJ ϲϲ WĂŐĞ ,//& EŽŶͲŽŵƉůŝĂŶƚ^ƚĂŝƌǁĂLJ '(9(/230(17 ŽŝůĞƌZŽŽŵ >Kt Z> s > 52&+(67(5 ʹ /Ed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±&HQWUDO%XVLQHVV 'LVWULFW&HQWUDO'HYHORSPHQW&RUH6WDQGDUGVWDEOHSURYLGHVWKHIROORZLQJLQIRUPDWLRQUHODWHG WR+HLJKWDQG6HWEDFNVXQGHUWKH7\SH,$SSURYDO3URFHVV x 0D[LPXP3HUPLWWHG+HLJKW 1R/LPLW x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x &HQWHU6WUHHW±6HFRQGDU\8UEDQ$UWHULDO x VW $YHQXH1:±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x 3XEOLFVLGHZDONVVKRXOGSURYLGHDIRRWEXIIHUDORQJWKHEXLOGLQJIRRWFOHDUVLGHZDON DUHDDQGDEXIIHU]RQHRUDPHQLW\]RQHEHWZHHQWKHSHGHVWULDQVDQGYHKLFOHV$OO VLGHZDONVSURSRVHGPD\EHLQFRQIOLFWZLWKWKLVGHVLJQHOHPHQW7KHDSSOLFDQWVKRXOG FRQVLGHUUHPRYDORUUHFRQILJXUDWLRQRIWKHRQVWUHHWSDUNLQJDORQJWKHSXEOLF52:WR DFFRPPRGDWHWKHSHGHVWULDQQHHGVZLWKLQWKHSURMHFWERXQGDU\$GGLWLRQDOGHWDLOHG GHVLJQLVUHTXLUHGWRFODULI\WKLVGHVLJQLQWHQW x 7KHDPHQLW\]RQHPXVWEHVL]HGDSSURSULDWHO\IRUWKHDPHQLWLHVEHLQJSURSRVHGLI EHQFKHVDQGELNHUDFNVDUHSURSRVHGDGGLWLRQDOVSDFHPD\EHUHTXLUHGWRDFFRPPRGDWH WKHQHHGVRIWKHVHXVHV$GGLWLRQDOGHWDLOHGGHVLJQLVUHTXLUHGWRFODULI\WKLVGHVLJQLQWHQW x 7KHUHPD\EHLQDGHTXDWHVWUHHWVFDSHZLGWKWRDFFRPPRGDWHWKHRXWGRRUVHDWLQJVSDFH LGHQWLILHGLQ6KHHW&6WUHHWVFDSH3ODQDQG&6WUHHWVFDSH,PDJHVWKHDSSOLFDQWVKDOO SURYLGHDGGLWLRQDOLQIRUPDWLRQWRVKRZKRZWKHDUHDFDQSURYLGHWKHDSSURSULDWHVSDFH WRDFFRPPRGDWHWKHXVHVSURSRVHGLQWKHSXEOLFULJKWRIZD\ x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x +RZZLOOWKHDUHDHXVHG SDUNLQJVSDFHVORDGLQJGHOLYHU\]RQHRQO\ x +RZYHKLFXODUDFFHVVDQGPRYHPHQWVDUHFRQWUROOHGDORQJWKHSXEOLFDOOH\ x +RZZLOOVHUYLFHYHKLFOHVXVHWKHDUHD x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imes New Roman]]µ7KH [[542,2961,554,3018][12][,I,][Times New Roman]] [[557,2961,2262,3018][12][,I,][Times New Roman]]VWXGLHGLQWHUVHFWLRQZLOOFRQWLQXHWRRSHUDWHWRD FFHSWDEOHOHYHOVRIVHUYLFHZLWKWKH [[443,3018,1102,3075][12][,I,][Times New Roman]]SURSRVHGGHYHORSPHQWLQSODFH¶ [[1103,3018,1115,3075][12][,I,][Times New Roman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imes New Roman]]7KHSURSRVHGVLWH [[960,2706,972,2763][12][,I,][Times New Roman]] [[974,2706,1061,2763][12][,I,][Times New Roman]]DQG [[1064,2706,1442,2763][12][,I,][ Times New Roman]]DVVRFLDWHXVHVDUH [[1445,2706,2262,2763][12][,I,][Times New Roman]]VXLWDEOHDVWKHORFDWLRQIRUDQ,QFHQWLYH [[598,2763,2262,2820][12][,I,][Times New Roman]]'HYHORSPHQW7KHSURSRVHGXVHVDUHFRPSDWLEOHZLWKWKHH[LVWLQJODQGXVHVLQWKH [[600,2821,703,2878][12][,I,][Times New Roman]]DUHD [[704,2821,716,2878][12][,I,][Times New Roman]] [[726,2821,759,2878][12][,I,][Times New Roman]]7 [[754,2821,1200,2878][12][,I,][Times New Roman]]KHSURSHUW\LV]RQHG [[1211,2821,1314,2878][12][,I,][Times New Roman]]&'& [[1314,2821,1330,2878][12][,I,][Times New Roman]] [[1330,2821,1442,2878][12][,I,][Times New Roman]]&%' [[1452,2821,1474,2878][12][,I,][Times New Roman]] [[1468,2821,2040,2878][12][,I,][Times New Roman]]&HQWUDO'HYHORSPHQW&RUH [[2050,2821,2076,2878][12][,I,][Times New Roman]]± [[2076,2821,2088,2878][12][,I,][Times New Roman]] [[2098,2821,2262,2878 ][12][,I,][Times New Roman]]&HQWUDO [[598,2878,955,2935][12][,I,][Times New Roman]]%XVLQHVV'LVWULFW [[949,2878,1497,2935][12][,I,][Times New Roman]] DQGWKHSURSRVHGXVHV [[1511,2878,2262,2935][12][,I,][Times New Roman]]DUHDOORZHGE\WKH]RQLQJGLVWULFW [[600,2936,797,2993][12][,I,][Times New Roman]]VWDQGDUGV [[798,2936,810,2993][12][,I,][Times New Roman]] [[597,2993,948,3050][12][,I,][Times New Roman]]$GMDFHQW=RQLQJ [[949,2993,961,3050][12][,I,][Times New Roman]] [[598,3051,729,3108][12][,I,][Times New Roman]]1RUWK [[730,3051,746,3108][12][,I,][Times New Roman]] [[746,3051,758,3108][12][,I,][Times New Roman]] [[759,3051,862,3108][12][,I,][Times New Roman]]&'& [[862,3051,878,3108][12][,I,][Times New Roman]] [[876,3051,1048,3108][12][,I,][Times New Roman]])ULQJH [[1043,3051,1596,3108][12][,I,][Times New Roman]]&HQWUDO'HYHORSPHQW&RUH [[1596,3051,1622,3108][12][,I,][Times New Roman]]± [[1622,3051,1634,3108][12][,I,][Times New Roman]] [[1633,3051,1783,3108 ][12][,I,][Times New Roman]])ULQJH [[1781,3051,1937,3108][12][,I,][Times New Roman]]'LVWULFW [[1930,3051,1952,3108][12][,I,][Times New Roman]] [[1953,3051,1965,3108][12][,I,][Times New Roman]] 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J )2][,I,][Times New Roman]] [[1959,291,1971,348][12][,I,][Times New Roman]] 7KHQDWXUDOFKDUDFWHULVWLFVRIWKHVLWHXQGHUFRQVLGHUDWLRQLQFOXGLQJWRSRJUDSK\DQG VRLOFKDUDFWHULVWLFVQHFHVVLWDWHLQFUHDVHGGHQVLW\WRDOORZIRUHFRQRPLFGHYHORSPHQW RIWKHVLWH [[600,521,2262,578][12][,I,][Times New Roman]]7KHSURSRVHGVLWHLVDQH[LVWLQJXUEDQL]HGVLWHZLWKH[LVWLQJGHYHORSPHQW7KH [[593,578,2262,635][12][,I,][Times New Roman]]SURSRVHGVLWHGRHVQRWFRQWDLQDQ\QDWXUDOIHDWXUHRUVRLOVFRQGLWLRQVWKDWZRXOG [[600,636,2060,693][12][,I,][Times New Roman]]UHTXLUHDQLQFUHDVHRIGHQVLW\WRDOORZHFRQRPLFGHYHORSPHQWRIWKHVLWH [[2061,636,2073,693][12][,I,][Times New Roman]] [[600,693,612,750][12][,I,][Times New Roman]] 6LWH'HVLJQ&ULWHULD % 7KH&RPPLVVLRQDQG&RXQFLOVKDOOILQGWKDWWKHSUHOLPLQDU\ GHYHORSPHQWSODQGHVLJQLVFRQVLVWHQWZLWKWKHIROORZLQJJXLGHOLQHV &DSDFLW\RI3XEOLF)DFLOLWLHV 7KHH[LVWLQJRUIXWXUHSODQQHGSXEOLFIDFLOLWLHVLQWKH DUHDDUHDGHTXDWHWRVHUYHWKHSURSRVHGGHYHORSPHQW [[600,1038,2262,1095][12][,I,][Times New Roman]]8WLOLWLHVH[LVWDGMDFHQWWRWKLVSURMHFW6RPHXWLOLWLHVZLOOQHHGWREHPRGLILHG LH [[599,1096,713,1153][12][,I,][Times New Roman]]ZDWHU [[714,1096,1029,1153][12][,I,][Times New Roman]]VDQLWDU\VHZHU [[1030,1096,1042,1153][12][,I,][Times New Roman]] [[1042,1096,2017,1153][12][,I, ][Times New Roman]]DQGHOHFWULF WRDFFRPPRGDWHWKLVGHYHORSPHQW [[2017,1096,2262,1153][12][,I,][Times New Roman]]6WRUPZDWHU [[600,1153,1976,1210][12][,I,][Times New Roman]]VHZHUFDSDFLW\HYDOXDWLRQZLOOEHFRPSOHWHGZLWKWKHGHYHORSPHQWR [[1968,1153,2262,1210][12][,I,][Times New Roman]]IWKH*UDGLQJ [[600,1211,2262,1268][12][,I,][Times New Roman]]DQGGUDLQDJHUHSRUWGHYHORSPHQWIRUWKHSURMHFW7KHDSSOLFDQWSURSRVHVWR [[600,1268,2230,1325][12][,I,][Times New Roman]]LPSOHPHQWORZLPSDFWVWRUPZDWHUGHVLJQSULQFLSOHVWRUHGXFHVWRUPZDWH [[2231,1268,2250,1325][12][,I,][Times New Roman]]U [[2250,1268,2262,1325][12][,I, ][Times New Roman]] [[600,1326,1100,1383][12][,I,][Times New Roman]]GLVFKDUJHWROHVVWKDWSUH [[1101,1326,1117,1383][12][,I,][Times New Roman]] [[1117,1326,1537,1383][12][,I,][Times New Roman]]GHYHORSPHQWUDWHV7 [[1533,1326,2261,1383][12][,I,][Times New Roman]]KHDSSOLFDQWZLOOQHHGWRFRRUGLQDWH [[600,1383,837,1440][12][,I,][Times New Roman]]WKHVHPRGLI [[829,1383,1960,1440][12][,I,][Times New Roman]]LFDWLRQVRULPSURYHPHQWVZLWKWKHDSSURSULDWHDJHQFLHV [[1961,1383,1973,1440][12][,I,][Time s New Roman]] *HRORJLF+D]DUGV 7KHH[LVWHQFHRIDUHDVRIQDWXUDORUJHRORJLFKD]DUGVXFKDV XQVWDEOHVORSHVVLQNKROHVIORRGSODLQHWFKDVEHHQLGHQWLILHGDQGWKHGHYHORSPHQWRI WKHVHDUHDVKDVEHHQWDNHQLQWRDFFRXQWRUZLOOEHDGGUHVVHGLQWKHILQDOGHYHORSPHQW SODQ [[600,1728,875,1785][12][,I,][Times New Roman]]7KHUHDUHQR [[878,1728,1594,1785][12][,I,][Times New Roman]]NQRZQJHRORJLFKD]DUGVRQWKHVLWH [[1594,1728,2262,1785][12][,I,][Times New Roman]]WKHVLWHLVIODWDQGWKHUHDUHQR [[600,1786,2080,1843][12][,I,][Times New Roman]]NQRZQVLQNKROHV7KHVLWHGRVQRWFRQWDLQK\GULFVRLOVRUIORRGSODLQVRLOV [[2081,1786,2093,1843][12][,I,][Times New Roman]] 1DWXUDO)HDWXUHV )RUGHYHORSPHQWVLQYROYLQJQHZFRQVWUXFWLRQWKHDUUDQJHPHQWRI EXLOGLQJVSDYHGDUHDVDQGRSHQVSDFHKDVWRWKHH[WHQWSUDFWLFDOXWLOL]HGWKHH[LVWLQJ WRSRJUDSK\DQGH[LVWLQJGHVLUDEOHYHJHWDWLRQRIWKHVLWH [[600,2073,1721,2130][12][,I,][Times New Roman]]7KHVLWHLVDQH[LVWLQJXUEDQL]HGVLWHLQWKHGRZQWRZQDU [[1722,2073,2043,2130][12][,I,][Times New Roman]]HDRI5RFKHVWHU [[2044,2073,2056,2130][12][ ,I,][Times New Roman]] [[2056,2073,2262,2130][12][,I,][Times New Roman]]7KHUHDUH [[600,2131,2262,2188][12][,I,][Times New Roman]]QRQDWXUDOIHDWXUHVRQWKHVLWH7KHVLWHLVUHODWLYHO\IODWZLWKDSSUR[LPDWHO\IHHW [[600,2188,1429,2245][12][,I,][Times New Roman]]RIIDOODFURVVWKHVLWHIURPQRUWKWRVRXWK [[1429,2188,1441,2245][12][,I,][Times New Roman]] 7UDIILF*HQHUDWLRQ,PSDFW $QWLFLSDWHGWUDIILFJHQHUDWHGE\WKHGHYHORSPHQWZLOO QRWFDXVHWKHFDSDFLW\RIDGMDFHQWVWUHHWVWREHH[FHHGHGDQGFRQFHSWXDOLPSURYHPHQWV RUWKHQHHGIRULPSURYHPHQWVWRUHGXFHWKHLPSDFWRIDFFHVVSRLQWVRQWKHWUDIILFIORZ RIDGMDFHQWVWUHHWVKDYHEHHQLGHQWLILHGZKHUHQHHGHG [[600,2533,1445,2590][12][,I,][Times New Roman]]7KHDSSOLFDQWKDVSURYLGHGD7UDIILF,PS [[1446,2533,2262,2590][12][,I,][Times New Roman]]DFW6WXG\DVSDUWRIWKHFRQGLWLRQDOXVH [[600,2591,1543,2648][12][,I,][Times New Roman]]LQFHQWLYHGHYHORSPHQWSUHOLPLQDU\DSSOLFDWLRQ [[1544,2591,1556,2648][12][,I,][Times New Roman]] [[1556,2591,1583,2648][12][,I,][Times New Roman]] [[1587,2591,1811,2648][12][,I,][Times New Roman]]7KHWUDIILF [[1815,2591,1920,2648][12][,I,][Times New Roman]]VWXG\ [[1921,2591,1933,2648][12][,I,][Times New Roman]] [[1936,2591,2113,2648][12][,I,][Times New Roman]]LVXQGHU [[2117,2591,2158,2648][12][,I,][Times New Roman]]UH [[2158,2591,2262,2648][12][,I,][Times New Roman]]YLHZ [[600,2648,625,2705][12][,I,][Times New Roman]]E [[620,2648,1540,2705][12][,I,][Times New Roman]]\WKH&LW\RI5RFKHVWHU3XEOLF:RUNV6WDII [[1531,2648,2262,2705][12][,I,][Times New Roman]]7KHWUDIILFUHSRUWHYDOXDWHGWKH [[600,2706,1641,2763][12][,I,][Times New Roman]]RSHUDWLRQVRILQWHUVHFWLRQVLQWKHLPPHGLDWHYLFLQLW\ [[1641,2706,1916,2763][12][,I,][Times New Roman]]RIWKHSURMHFW [[1917,2706,1929,2763][12][,I,] [Times New Roman]] [[1928,2706,1961,2763][12][,I,][Times New Roman]]7 [[1956,2706,2250,2763][12][,I,][Times New Roman]]KHFRQFOXVLRQV [[2250,2706,2262,2763][12][,I,][Times New Roman]] [[600,2763,1574,2820][12][,I,][Times New Roman]]LGHQWLILHGLQWKHUHYLVHG7UDIILF5HSRUWGDWHG [[1574,2763,1590,2820][12][,I,][Times New Roman]] [[1591,2763,1616,2820][12][,I,][Times New Roman]] [[1616,2763,1632,2820][12][,I,][Times New Roman]] [[1632,2763,1744,2820][12][,I,][Times New Roman]] [[1748,2763,1839,2820][12][,I,][Times New Roman]]µ7KH [[1839,2763,1851,2820][12 ][,I,][Times New Roman]] [[1855,2763,2262,2820][12][,I,][Times New Roman]]VWXGLHGLQWHUVHFWLRQ [[599,2821,2262,2878][12][,I,][Times New Roman]]ZLOOFRQWLQXHWRRSHUDWHWRDFFHSWDEOHOHYHOVRIVHUYLFHZLWKWKHSURSRVHG [[600,2878,1054,2935][12][,I,][Times New Roman]]GHYHORSPHQWLQSODFH¶ [[1054,2878,1066,2935][12][,I,][Times New Roman]] [[1067,2878,1079,2935][12][,I,][Times New Roman]] 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU01 3DFNHW3J ) Roman]] [[598,1038,1804,1095][12][,I,][Times New Roman]](DVWRIWKHSURMHFWLVDSDUNLQJUDPSDQGFRPPHUFLDOXVHV [[1805,1038,2262,1095][12][,I,][Times New Roman]]QRUWKDQGVRXWKRIWKH [[593,1096,2262,1153][12][,I,][Times New Roman]]SURMHFWDUHSDUNLQJUDPSVDQGZHVWRIWKHSURMHFWLVWKH5RFKHVWHU0HWKRGLVW [[600,1153,763,1210][12][,I,][Times New Roman]]KRVSLWDO [[762,1153,774,1210][12][,I,][Times New Roman]] [[774,1153,786,1210][12][,I,][Times New Roman]] 6HWEDFNV )RUGHYHORSPHQWVLQYROYLQJQHZFRQVWUXFWLRQSURSRVHGVHWEDFNVDUH UHODWHGWREXLOGLQJKHLJKWDQGEXONLQDPDQQHUFRQVLVWHQWZLWKWKDWUHTXLUHGIRU SHUPLWWHGXVHVLQWKHXQGHUO\LQJ]RQLQJGLVWULFW [[600,1441,647,1498][12][,I,][Times New Roman]]: [[641,1441,947,1498][12][,I,][Times New Roman]]LWKLQWKH&'& [[954,1441,980,1498][12][,I,][Times New Roman]]± [[980,1441,1080,1498][12][,I,][Times New Roman]]&%' [[1080,1441,1092,1498][12][,I,][Times New Roman]] [[1099,1441,1241,1498][12][,I,][Times New Roman]]GLVWULFW [[1241,1441,1253,1498][12][,I,][Times New Roman]] [[1254,1441,1266,1498][ 12][,I,][Times New Roman]] [[1273,1441,1737,1498][12][,I,][Times New Roman]]WKHPLQLPXPEXLOGLQJ [[1744,1441,2167,1498][12][,I,][Times New Roman]]VHWEDFNLV]HURIHHW [[2175,1441,2262,1498][12][, I,][Times New Roman]]7KH [[600,1498,2262,1555][12][,I,][Times New Roman]]DSSOLFDQWLVSURSRVLQJDYDULHGVWUHHWVFDSHDORQJWKHSXEOLFVWUHHWIURQWDJHVZKLFK [[2102,1550,2125,1590][8][,I,][Times New Roman]]VW [[593,1556,2102,1613][12][,I,][Times New Roman]]SURYLGHIRUUHFHVVHGHQWUDQFHVDQGSDWLRVSDFHVQHDUWKHLQWHUVHFWLRQDW [[2125,1556,2137,1613][12][,I,][Times New Roman]] [[2139,1556,2262,1613][12 ][,I,][Times New Roman]]VWUHHW [[678,1607,701,1647][8][,I,][Times New Roman]]VW [[1229,1607,1252,1647][8][,I,][Times New Roman]]VW [[600,1613,677,1670][12][,I,][Times New Roman]] [[701,1613,713,1670][12][,I,][Times New Roman]] [[712,1613,1228,1670][12][,I,][Times New Roman]]$YHDQGZHVWFHQWHU [[1251,1613,1263,1670][12] [,I,][Times New Roman]] [[1263,1613,1380,1670][12][,I,][Times New Roman]]$YH [[1382,1613,1469,1670][12][,I,][Times New Roman]]7KH [[1472,1613,1855,1670][12][,I,][Times New Roman]]VWUHHWVFDSHDOR QJW [[1854,1613,2262,1670][12][,I,][Times New Roman]]KHSXEOLFURDGZD\V [[600,1671,753,1728][12][,I,][Times New Roman]]DSSHDU [[756,1671,1005,1728][12][,I,][Times New Roman]]WRDOORZIRU [[1008,1671,2249,1728][12][,I,][Times New Roman]]GHYHORSPHQWRIVWUHHWVFDSHLQFRP SOLDQFHZLWKFLW\VWDQGDUGV [[2250,1671,2262,1728][12][,I,][Times New Roman]] [[600,1728,1658,1785][12][,I,][Times New Roman]]DQGSURYLGHIRUSHGHVWULDQIDFLOLWLHVDQGELNHSDUNLQJ [[1656,1728,1668,1785][12][,I,][Times New Roman]] [[1669,1728,1691,1785][12][,I,][Times New Roman]] [[1690,1728,2262,1785][12][,I,][Times New Roman]]7KHEXLOGLQJLVVHWEDFNIURP [[600,1786,1205,1843][12][,I,][Times New Roman]]WKHDOOH\DSSUR[LPDWHO\ )QW [[864,981,876,1038][12][,I,][Times New Roman]] [[874,981,1496,1038][12][,I,][Times New Roman]]SURFHVVRXWOLQHGLQWKH/'0 [[1501,981,2262,1038][12][,I,][Times New Roman]]7KHSURSRVHGSDUNLQJ FRPSOLHVZLWK [[600,1038,1464,1095][12][,I,][Times New Roman]]WKH'RZQWRZQ3DUNLQJ2YHUOD\'LVWULFW [[1477,1038,1507,1095][12][,I,][Times New Roman]]= [[1505,1038,1890,1095][12][,I,][Times New Roman]]RQLQJVWDQGD UGV [[1903,1038,2261,1095][12][,I,][Times New Roman]]7KHDSSOLFDQWLV [[593,1096,1041,1153][12][,I,][Times New Roman]]SURSRVLQJODQGVFDSH [[1048,1096,1234,1153][12][,I,][Times New Roman]]SODQWLQJ [[1246,1096,1372,1153][12][,I,][Times New Roman]]ZLWKLQ [[1372,1096,1384,1153][12][,I,][Times New Roman]] [[1397,1096,2262,1153][12][,I,][Times New Roman]]WKHSXEOLF52:ZKLFKFRPSO\ZLWKWKH [[600,1153,691,1210][12][,I,][Times New Roman]]ERXO [[689,1153,1442,1210][12][,I,][Times New Roman]]HYDUGWUHHUHTXLUHPHQWVLQWKH/'0 [[1444,1153,1456,1210][12][,I,][Times New Roman]] [[1457,1153,2012,1210][12][,I,][Times New Roman]]7KHDSSOLFDQWPXVWUHFHLYH [[2014,1153,2261,1210][12][,I,][Times New Roman]]DUHYRFDEOH [[593,1211,869,1268][12][,I,][Times New Roman]]SHUPLWIRUDOO [[867,1211,879,1268][12][,I,][Times New Roman]] [[880,1211,1457,1268][12][,I,][Times New Roman]]HQFURDFKPHQWVLQWRWKHULJKW [[1456,1211,1472,1268][12][,I,][Times New Roman]] [[1472,1211,1520,1268][12][,I,][Times New Roman]]RI [[1511,1211,1527,1268][12][,I,][Times New Roman]] [[1527,1211,2262,1268][12][,I,][Times New Roman]]ZD\2WKHUFLW\REOLJDWLRQVPXVWEH [[1820,1267,1832,1324][12][B,I,][Times New Roman]] [[600,1268,1793,1325][12][,I,][Times New Roman]]PHWWKURXJKDSSOLFDWLRQDQGOLDLVRQZLWKUHOHYDQWDJHQFLHV [[1794,1268,1818,1325][12][,I,][Times New Roman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imes New Roman]]7KHGHYHORSPHQWLVSURSRVLQJWRUHGHYHORSWKHSXEOLFUHDOPVSDFHDORQJWKH [[874,1895,897,1935][8][,I,][Times New Roman]]VW [[1182,1895,1205,1935][8][,I,][Times New Roman]]VW [[591,1901,873,1958][12][,I,][Times New Roman]]IURQWDJHVRI [[897,1901,909,1958][12][,I,][Times New Roman]] [[907,1901,1181,1958][12][,I,][Times New Roman]]DYHQXH1: [[1204,1901,1216,1958][12][ ,I,][Times New Roman]] [[1215,1901,1555,1958][12][,I,][Times New Roman]]VWUHHW1:DQG: [[1549,1901,1617,1958][12][,I,][Times New Roman]]HVW [[1616,1901,1880,1958][12][,I,][Times New Roman]]&HQWHU6WUHHW [[1879,1901,1999,1958][12][,I,][Times New Roman]]7KH [[1991,1901,2200,1958][12][,I,][Times New Roman]]SXEOLFUHD [[2200,1901,2250,1958][12][,I,][Times New Roman]]OP [[2250,1901,2262,1958][12][,I,][Times New Roman]] [[600,1958,2261,2015][12][,I,][Times New Roman]]VSDFHVSURYLGHSHGHVWULDQZDONZD\VZLWKFRQFUHWHDQGSDYHUVXUIDFHVODQGVFDSH [[600,2016,2262,2073][12][,I,][Times New Roman]]DUHDVELNHUDFNVEHQFKHVDQGWUDVKUHF\FOLQJUHFHSWDFOHV7KHH[WHULRUELNH [[593,2073,1011,2130][12][,I,][Times New Roman]]SDUNLQJLGHQWLILHV [[1018,2073,1166,2130][12][,I,][Times New Roman]]UDFNV [[1160,2073,2262,2130][12][,I,][Times New Roman]]WZRELNHSHUUDFN DWRWDORIVSDFHV7KHSDUNLQJ [[600,2131,935,2188][12][,I,][Times New Roman]]UDPSLGHQWLILHVE [[936,2131,2262,2188][12][,I,][Times New Roman]]LNHSDUNLQJRQHDFKOHYHOZLWKWRWDORIUDFN WZRELNHVSHUUDFN [[600,2188,2261,2245][12][,I,][Times New Roman]]WRWDORIVSDFHVSURYLGHG,WLVDQWLFLSDWHGWKHLQWHULRUVSDFHVDUHIRUWKH [[600,2246,2262,2303][12][,I,][Times New Roman]]UHVLGHQWLDOWHQDQWVWKHDSSOLFDQWZLOOQHHGWRSURYLGHDGGLWLRQDOGHWDLORQWKHXVHUV [[600,2303,974,2360][12][,I,][Times New Roman]]RIWKHLQWHULRUELNH [[975,2303,987,2360][12][,I,][Times New Roman]] [[981,2303,1328,2360][12][,I,][Times New Roman]]SDUNLQJVSDFHV [[1330,2303,2262,2360][12][,I,][Times New Roman]]7KHGHYHORSPHQWLVORFDWHGLQFORVHSUR[LPLW\ [[1662,2355,1685,2395][8][,I,][Times New Roman]]VW [[2000,2355,2036,2395][8][,I,][Times New Roman]]QG [[600,2361,1662,2418][12][,I,][Times New Roman]]WRDNH\EXVWUDQVLWVWRSORFDWHGDW6%URDGZD\DQG [[1685,2361,1697,2418][12][,I,][Times New Roman]] [[1696,2361,1880,2418][12][,I,][Times New Roman]]6WUHHW6( [[1878,2361,1890,2418][12][,I,][Times New Roman]] [[1889,2361,2000,2418][12][,I,][Times New Roman]]DQG [[2033,2361,2045,2418][12][,I,][Times New Roman]] [[2044,2361,2243,241 8][12][,I,][Times New Roman]]6WUHHW6: [[2237,2361,2249,2418][12][,I,][Times New Roman]] [[2250,2361,2274,2418][12][,I,][Times New Roman]] [[600,2418,1874,2475][12][,I,][Times New Roman]]7KHDSSOLFDQWLGHQWLILHVDSRVVLEOHIXWXUHFRQQHFWLRQWRWKHVN\ [[1874,2418,1890,2475][12][,I,][Times New Roman]] [[1890,2418,2262,2475][12][,I,][Tim es New Roman]]ZD\V\VWHPDWWKH [[1251,2475,1263,2532][12][B,I,][Times New Roman]] [[600,2476,1037,2533][12][,I,][Times New Roman]]QRUWKHDVWFRUQHURIWK [[1038,2476,1251,2533][12][,I,][Times New Roman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x +LJK'HQVLW\PLGKLJKULVHKRXVLQJ x +RWHOVDQGH[WHQGHGORGJLQJ x 2IILFHEXLOGLQJ x 7UDGLWLRQDOUHWDLODQGGLQLQJ x 9LVLWRUVHUYLFHV 7KHSURSRVHGSURMHFWSURYLGHVDQXPEHURIWKHVHHOHPHQWVLQLWVSURMHFWPL[ 'HVWLQDWLRQ0HGLFDO&HQWHU'LVWULFW'HVLJQ*XLGHOLQHV±'UDIW 7KHIROORZLQJLVDOLPLWHGUHYLHZRIWKHSURSRVHGSURMHFWLQFRPSDULVRQWRWKH LQIRUPDWLRQFRQWDLQHGLQWKH'0&'LVWULFW'HVLJQ*XLGHOLQHV7KHLQIRUPDWLRQ SURYLGHGEHORZLVLQFOXGHGKHUHWRSURYLGHDZD\WRDQDO\]HWKHVWUHHWVFDSHVSDFH SURSRVHGDORQJWKHURDGZD\IURQWDJHV %'HVLJQ0XOWLPRGDO6WUHHWV3ULRULWL]LQJ3HGHVWULDQV)LUVW 7KHSURSRVHGSURMHFWGHVLJQSURYLGHVIRUDYDULHGSXEOLFUHDOPVSDFHVGHSHQGLQJRQ WKHSXEOLFURDGZD\ x VW $YHQXH1:IHHWRISXEOLFUHDOPVSDFHZLWKIHHWRISXEOLFZDONLQJ VSDFH x VW 6WUHHW1:± IHHWRISXEOLFUHDOPVSDFHZLWKIHHWRISXEOLFZDONLQJ VSDFH x :HVW&HQWHU6WUHHW±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±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oDGHSURKLELWLYHO\ DGGLQJWRWKHFRVWRIWKHGHYHORSPHQWFUHDWLQJXQDFFHSWDEOHVFDOHDQGPDVVLQJLVVXHVDQGVLJQLILFDQWO\GLPLQLVKLQJWKHIXWXUHSHUIRUPDQFHRI Ǧ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ŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐ ŽŶĨŝůĞĂƚƚŚĞZŽĐŚĞƐƚĞƌ Ͳ KůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ Dƌ͘tĂůƚĞƌƐŶŽƚĞĚƚŚĞĚŝƐĐƵƐƐŝŽŶŽĨƚŚĞŚŝƐƚŽƌŝĐĚĞƐƚŝŶĂƚŝŽŶŽĨƚŚĞďƵŝůĚŝŶŐƐŚŽƵůĚďĞĚŝƌĞĐƚĞĚĂƐƉĂƌƚŽĨ ƚŚĞĚĞĐŝƐŝŽŶŵĂĚĞďLJƚŚĞĐŽŵŵŝƐƐŝŽŶ͘ Dƌ͘tĂůƚĞƌƐŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘^ƚƵĂƌƚĂĚƌĂ͕,ĂŵŵĞƐŽŵƉĂŶLJ͕ůŽĐĂƚĞĚĂƚϭϬϮϬZĞŐĞŶƚƐ^ƚƌĞĞƚ͕DĂĚŝƐŽŶtŝƐĐŽŶƐŝŶ͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞƉƌĞƐĞŶƚĞĚĂĚĞƚĂŝůĞĚĞdžƉůĂŶĂƚŝŽŶŽĨƚŚĞďƵŝůĚŝŶŐůĂLJŽƵƚŝŶƚĞƌŝŽƌĂŶĚĞdžƚĞƌŝŽƌƵƐĞƐ͖ ƉĂƌŬŝŶŐƵƐĞǁĂƐĚŝƐĐƵƐƐĞĚŝŶƌĞŐĂƌĚƐƚŽĐŽŶƚƌĂĐƚǀĞƌƐƵƐƉƵďůŝĐƉĂƌŬŝŶŐ͘ DƐ͘DĞĞŬĂƐŬĞĚĂďŽƵƚƐŬLJǁĂLJĐŽŶŶĞĐƚŝŽŶŽƉƚŝŽŶ͖ŶŽƚĂƐƵďǁĂLJ͍͘ _3DJH 3DFNHW3J )ďƵŝůĚŝŶŐďĞĨŽƌĞ ŵĂŬŝŶŐĂĚĞĐŝƐŝŽŶ͘ tŝƚŚŶŽŽŶĞĞůƐĞǁŝƐŚŝŶŐƚŽďĞŚĞĂƌĚ͕Dƌ͘tĂůƚĞƌƐĐůŽƐĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ ŝƐĐƵƐƐŝŽŶĞŶƐƵĞĚĂŵŽŶŐƚŚĞĐŽŵŵŝƐƐŝŽŶŝŶƌĞŐĂƌĚƐƚŽƚŚĞůĂĐŬŽĨĐůĂƌŝƚLJͬĚĞƚĂŝůƐŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚ ƐƵďŵŝƚƚĂů͖ŵŽǀŝŶŐƚŚĞƉƌŽũĞĐƚĨŽƌǁĂƌĚǁŝƚŚƚŚĞĐŽŶĚŝƚŝŽŶƐůŝƐƚĞĚŝŶƚŚĞƐƚĂĨĨƌĞƉŽƌƚďĞĐĂƵƐĞƚŚŝƐŝƐƚŚĞ ƉƌĞůŝŵŝŶĂƌLJƐƚĂŐĞŽĨƚŚĞƉƌŽũĞĐƚ͘ Dƌ͘ƵŶŶĐŽŵŵĞŶƚĞĚƚŚĞWůĂŶŶŝŶŐƐƚĂĨĨŝƐĂĚĚŝŶŐŵŽƌĞĐŽŶĚŝƚŝŽŶƐĨŽƌĐůĞĂŶĞĚƵƉŝŶƚŚĞĨŝŶĂů ĚĞǀĞůŽƉŵĞŶƚƐƚĂŐĞ͖ďƵƚŝĨĂĚĚŝŶŐŵŽƌĞĐůĂƌŝƚLJĂƚƚŚĞƉƌĞůŝŵŝŶĂƌLJƐƚĂŐĞĂƐƐŝƐƚƐŝŶŵĂŬŝŶŐĂĚĞĐŝƐŝŽŶƐƚŚĞŶ ĨŽůůŽǁƚŚƌŽƵŐŚƐŚŽƵůĚďĞĚŽŶĞĂƚƉƌĞƐĞŶƚ͘ ŝƐĐƵƐƐŝŽŶĐŽŶƚŝŶƵĞĚĂŵŽŶŐƚŚĞĐŽŵŵŝƐƐŝŽŶŚŽǁƚŽŵŽǀĞĨŽƌǁĂƌĚǁŝƚŚƚŚĞĚĞĐŝƐŝŽŶƚŽďĞŵĂĚĞŽŶƚŚĞ ƉƌŽũĞĐƚ͘ DƐ͘DĞĞŬŵĂĚĞĂŵŽƚŝŽŶƚŽƌĞ Ͳ ŽƉĞŶƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘Dƌ͘^ŝŵƐĞĐŽŶĚĞĚ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϲ Ͳ ϭ͘ Dƌ͘,ŝůůǀŽƚŝŶŐŶĂLJ͘ _3DJH 3DFNHW3J )ĐŬĚŝŵĞŶƐŝŽŶ͕ ĨƵŶĐƚŝŽŶ͕ŵĂƚĞƌŝĂůƐĂŶĚƵƐĞŽĨƚŚĞĂƌĞĂďĞƚǁĞĞŶƚŚĞƉƌŽƉŽƐĞĚďƵŝůĚŝŶŐĂŶĚƉƵďůŝĐ ĂůůĞLJ͘ Ő͘^ŝƚĞWůĂŶϭ͘ϬƐŚĂůůďĞƵƉĚĂƚĞĚƚŽƉƌŽǀŝĚĞĚŝŵĞŶƐŝŽŶƐŽĨƚŚĞƉƵďůŝĐƐƉĂĐĞƐŝĚĞŶƚŝĨŝĞĚ ǁŝƚŚŝŶƚŚĞƉƌŽũĞĐƚďŽƵŶĚĂƌLJ͕ŝĚĞŶƚŝĨŝĞĚĂƐƉĂǀĞƌƐŽŶƚŚĞƐŝƚĞƉůĂŶ͘ Ś͘^ŝƚĞWůĂŶϭ͘ϬƐŚĂůůďĞƵƉĚĂƚĞĚƚŽĚŽĐƵŵĞŶƚĐŽŵƉůŝĂŶĐĞĨŽƌƚŚĞĚƌŽƉŽĨĨĂƌĞĂ Ɛƚ ŝĚĞŶƚŝĨŝĞĚĂůŽŶŐϭǀĞŶƵĞEt ŝ͘^ƚƌĞĞƚƐĐĂƉĞWůĂŶϮ͘ϬƐŚĂůůďĞƵƉĚĂƚĞĚƚŽŝĚĞŶƚŝĨLJƚŚĞƋƵĂŶƚŝƚLJŽĨďŝŬĞƌĂĐŬƐ͕ďĞŶĐŚĞƐ͕ ƌĞĐLJĐůŝŶŐĐŽŶƚĂŝŶĞƌƐ͕ƚƌĂƐŚĐŽŶƚĂŝŶĞƌƐŝĚĞŶƚŝĨŝĞĚĂƚĞĂĐŚůŽĐĂƚŝŽŶ͘ ũ͘^ƚƌĞĞƚƐĐĂƉĞWůĂŶϮ͘ϬƐŚĂůůƉƌŽǀŝĚĞĂĚĚŝƚŝŽŶĂůĚĞƚĂŝůƐƌĞŐĂƌĚŝŶŐĨĞŶĐĞΘĐƵƌďďĞŝŶŐ ƉƌŽƉŽƐĞĚĂƌŽƵŶĚďŽƵůĞǀĂƌĚƚƌĞĞƐ͘ ϯ͘dŚĞ&ŝŶĂůWůĂŶƐƵďŵŝƚƚĂůƐŚĂůůŝŶĐůƵĚĞƚŚĞĨŽůůŽǁŝŶŐ͗ Ă͘ĚĞƚĂŝůĞĚůŝŐŚƚŝŶŐĂŶĚƉŚŽƚŽŵĞƚƌŝĐƉůĂŶǁŚŝĐŚĐŽŵƉůŝĞƐǁŝƚŚƚŚĞƉƌŽƉŽƐĞĚƐƚĂŶĚĂƌĚƐ͘ _3DJH 3DFNHW3J )ŝůŝƚŝĞƐ͕ĞdžŝƐƚŝŶŐƚŽ ĂĐĐŽŵŵŽĚĂƚĞƚŚĞƌĞ ͲĚĞǀĞůŽƉŵĞŶƚŽĨƚŚŝƐWƌŽƉĞƌƚLJ͘EŽĚĞǀĞůŽƉŵĞŶƚǁŝůůďĞĂůůŽǁĞĚƚŽ ŽĐĐƵƌƵŶƚŝůƚŚĞŝƚLJŽƵŶĐŝůŚĂƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚĂůůƌĞƋƵŝƌĞĚƉƵďůŝĐĨĂĐŝůŝƚŝĞƐĂƌĞĂĚĞƋƵĂƚĞ ĨŽƌƐĂŝĚƌĞ Ͳ ĚĞǀĞůŽƉŵĞŶƚ͘ůƚĞƌŶĂƚŝǀĞůLJ͕ƚŚĞĚĞǀĞůŽƉĞƌŵĂLJƌĞƋƵĞƐƚƚŽũŽŝŶǁŝƚŚƚŚĞŝƚLJŝŶ ŵĂŬŝŶŐƚŚĞƐĞŝŶĂĚĞƋƵĂƚĞƉƵďůŝĐĨĂĐŝůŝƚŝĞƐĂĚĞƋƵĂƚĞĨŽƌƚŚŝƐĚĞǀĞůŽƉŵĞŶƚ͕ĂŶĚŵĂLJĞŶƚĞƌ ŝŶƚŽĂĚĞǀĞůŽƉŵĞŶƚĂŐƌĞĞŵĞŶƚ͕ƉƌŝŽƌƚŽ&ŝŶĂůWůĂƚƐƵďŵŝƚƚĂů;ŽƌĨŝŶĂůŝŶĐĞŶƚŝǀĞ ĚĞǀĞůŽƉŵĞŶƚĂƉƉƌŽǀĂůŝĨƚŚĞƌĞŝƐŶŽƉůĂƚͿ͕ƚŚĂƚŽƵƚůŝŶĞƐƚŚĞĚĞǀĞůŽƉĞƌΖƐĂŶĚŝƚLJΖƐ ŽďůŝŐĂƚŝŽŶƐƌĞůĂƚĞĚ͕ďƵƚŶŽƚůŝŵŝƚĞĚƚŽ͗ĂĐĐĞƐƐ͕ZŝŐŚƚ Ͳ ŽĨ Ͳ tĂLJĚĞĚŝĐĂƚŝŽŶ͕ĂĐĐĞƐƐƚŽĂďƵƚƚŝŶŐ ƉƌŽƉĞƌƚŝĞƐ͕ƐƚŽƌŵǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚ͕ƚƌĂŶƐƉŽƌƚĂƚŝŽŶŝŵƉƌŽǀĞŵĞŶƚƐ;ŝŶĐůƵĚŝŶŐŽďůŝŐĂƚŝŽŶƐ ƌĞůĂƚĞĚƚŽƉĞƌŝŵĞƚĞƌĂŶĚĂůůĞLJƐͿ͕ƉĞĚĞƐƚƌŝĂŶĨĂĐŝůŝƚŝĞƐΘĐŽŶŶĞĐƚŝŽŶƐ͕ƐƚƌĞĞƚůŝŐŚƚŝŶŐ͕ ĨŝŶĂŶĐŝĂůŽďůŝŐĂƚŝŽŶƐƌĞůĂƚĞĚƚŽĚĞǀĞůŽƉŵĞŶƚĐŚĂƌŐĞƐĂŶĚŝŵƉƌŽǀĞŵĞŶƚƐƚŽƉƵďůŝĐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘ _3DJH 3DFNHW3J )ͺͺͺ DŝƚnjŝĂŬĞƌ͕WůĂŶŶŝŶŐŝƌĞĐƚŽƌDƌ͘DŝĐŚĂĞůtĂůƚĞƌƐ͕ŚĂŝƌ ďĚ _3DJH 3DFNHW3J + 5(48(67)25&281&,/$&7,21 0((7,1*'$7( + 5(48(67)25&281&,/$&7,21 0((7,1*'$7(