Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
February 5, 2018 Agenda Packet
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x 7KLVVHFWLRQRIWKHDJHQGDPD\QRWEHXVHGDVDIRUXPWRFRQWLQXHGLVFXVVLRQRQDQDJHQGD LWHPZKLFKKDVDOUHDG\EHHQKHOGDVDSXEOLFKHDULQJ x 7KLVDJHQGDVHFWLRQLVOLPLWHGWRPLQXWHVDQGHDFKVSHDNHULVOLPLWHGWRPLQXWHV x $WLPHUZLOOEHXVHGWRPDQDJHVSHDNHUWLPHV2QFHVWDUWHGWKHWLPHUZLOOGLVSOD\DJUHHQ OLJKWDQGPLQXWHV7KHWLPHUZLOOEHJLQFRXQWLQJGRZQRQFHWKHVSHDNHUEHJLQVKLVRUKHU FRPPHQWV7KHWLPHUZLOOFKDQJHWR\HOORZZKHQRQHPLQXWHUHPDLQV7KHWLPHUZLOOFKDQJH WRUHGZKHQWLPHKDVH[SLUHG x $Q\VSHDNHUVQRWKDYLQJWKHRSSRUWXQLW\WREHKHDUGZLOOEHILUVWWRSUHVHQWDWWKHQH[W&RXQFLO PHHWLQJ x 7KHQDPHRIWKHVSHDNHUPXVWEHSURYLGHG x &LWL]HQVPD\RQO\XVHWKLVIRUXPWRDGGUHVVWKH&RXQFLORQDPD[LPXPRIRQHWLPHSHUPRQWK x 0DWWHUVFXUUHQWO\XQGHUQHJRWLDWLRQOLWLJDWLRQRUUHODWHGWRSHUVRQQHOZLOOQRWEHGLVFXVVHGLQ WKLVIRUXP x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±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¶V0 VHHGURXQG7KHFRPSDQ\KDVUDLVHGDWRWDORI0WKDWKDVEHHQXVHGWRSURGXFHDILQDOSURGXFW UHFHLYH)'$FOHDUDQFHWRVHOOLQ'HFHPEHUDQGVROGXQLWV LQVDOHV XQGHUD ³OLPLWHGUHOHDVH´PRGHOLQZKLFKDVHOHFWHGJURXSRIGRFWRUV KDYHEHHQLGHQWLILHGWUDLQHG DQGKDYHEHHQXVLQJWKHGHYLFH 6RQH[KDVHPSOR\HHV RIWKHPLQ5RFKHVWHU DQGLVORRNLQJLQWRJURZLQJLWV5RFKHVWHU RSHUDWLRQVKLUHNH\HPSOR\HHVLQFOXGLQJVDOHVSHUVRQQHOEXLOGDWUDLQLQJFHQWHUIRUSK\VLFLDQVLQ 5RFKHVWHUDQGGHYHORSDGGLWLRQDOXVHVIRULWVSURGXFW &RPPLWWHH5HPDUNV 6RQH[VWDUWHGLWVRSHUDWLRQVLQDWWKH0D\R&OLQLF%XVLQHVV$FFHOHUDWRUDQGUHPDLQHGDWHQDQW RIWKH$FFHOHUDWRUXQWLO2FWREHUQWUHSUHQHXULDOOHDYHRIDEVHQFHIURP0D\RDQG'U-D\6PLWK6 RQH[¶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rial]]5RFKHVWHU&LW\&RXQFLO [[1550,150,1563,207][12][B,I,][Arial]] [[735,208,1814,265][12][B,I,][Arial]]$QQXDO$SSRLQWPHQWVWR9DULRXV&RPPLWWHHV [[1814,208,1827,265][12][B,I,][Arial]] [[1089,265,1462,322][12][B,I,][Arial]]-DQXDU\ [[1461,265,1474,322][12][B,I,][Arial]] '5$)7 6WDQGLQJ&RPPLWWHHV ±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±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¶V DQQXDORSHUDWLQJEXGJHWRULVQRWOHVVWKDQ 9ROXQWDU\&RPPLWWHHV ±9ROXQWDU\QRWDSSRLQWHGE\WKH&RXQFLOPD\QRWSDUWLFLSDWHLQYRWLQJ %RDUG&RPPLVVLRQ$SSRLQWPHQW5HDVRQ&XUUHQW5HSUHVHQWDWLYH 5HSUHVHQWDWLYH *UHDWHU5RFKHVWHU$GYRFDWHVIRU%\UHTXHVW±YROXQWDU\1LFN&DPSLRQ 8QLYHUVLWLHVDQG&ROOHJHV *5$8& (QYLURQPHQWDO&RPPLVVLRQ%\UHTXHVW±YROXQWDU\1LFN&DPSLRQ 5RFKHVWHU$UHD(FRQRPLF'HYHORSPHQW%\UHTXHVW±YROXQWDU\(G+UXVND(G+UXVND H[RIILFLR ,QF 5$(', 5DQG\6WDYHU5DQG\6WDYHU H[ 0D\RU%UHGH H[RIILFLR RIILFLR 0D\RU%UHGH H[ RIILFLR <RXWK&RPPLVVLRQ%\UHTXHVW±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¶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³VLJQLILFDQWSXEOLFIXQGV´VKDOOPHDQIXQGLQJSURYLGHGE\WKH&LW\ DVSDUWRIDQRQJRLQJFRQWUDFWIRUVHUYLFHVUHTXLULQJWKHHQWLW\WRIXOILOOREOLJDWLRQVWRWKHSXEOLF ZKHUHWKHDPRXQWRI&LW\IXQGLQJFRQVWLWXWHVHLWKHUDPLQLPXPRIRIWKHHQWLW\¶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rial]]5HFRPPHQGHG$FWLRQ$SSURYHJUDQWLQJWKHIROORZLQJDSSOLFDWL [[1425,1202,2331,1255][11][,I,][Arial]]RQVIRU&KLFNHQ3HUPLWVVXEMHFWWRDOOWHUPV [[150,1255,2169,1308][11][,I,][Arial]]DQGFRQGLWLRQVRI5RFKHVWHU&RGHRI2UGLQDQFHV&KDSWHUEIRUDSHULRGH[SLULQJ'HF [[2171,1255,2184,1308][11][,I,][Arial]] [[150,1308,163,1361][11][,I,][Arial]] 7RP(JJHEUDDWHQ [[2031,1993,2044,2045][11][,,][Arial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¶V3ROLF\ QFHRFFXUULQJSULRUWRWKHWUDQVDFWLRQYHVWLQJ7LWOHDVVKRZQLQ LLL DGRFXPHQWDIIHFWLQJ7LWOHQRWSURSHUO\FUHDWHG6FKHGXOH$EHFDXVHWKDWSULRUWUDQVIHUFRQVWLWXWHGD H[HFXWHGZLWQHVVHGVHDOHGDFNQRZOHGJHGQRWDUL]HGRUIUDXGXOHQWRUSUHIHUHQWLDOWUDQVIHUXQGHUIHGHUDOEDQNUXSWF\ GHOLYHUHGVWDWHLQVROYHQF\RUVLPLODUFUHGLWRUV¶ULJKWVODZVRU LY IDLOXUHWRSHUIRUPWKRVHDFWVQHFHVVDU\WRFUHDWHD E EHFDXVHWKHLQVWUXPHQWRIWUDQVIHUYHVWLQJ7LWOHDVVKRZQLQ GRFXPHQWE\HOHFWURQLFPHDQVDXWKRUL]HGE\ODZ6FKHGXOH$FRQVWLWXWHVDSUHIHUHQWLDOWUDQVIHUXQGHUIHGHUDO Y DGRFXPHQWH[HFXWHGXQGHUDIDOVLILHGH[SLUHGRUEDQNUXSWF\VWDWHLQVROYHQF\RUVLPLODUFUHGLWRUV¶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´HQFURDFKPHQW´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´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³$PRXQWRI,QVXUDQFH´7KHDPRXQWVWDWHGLQ6FKHGXOH$DVPD\EHWRWKH7LWOHDVLQVXUHGDQGWKDWPLJKWFDXVHORVVRUGDPDJHIRUZKLFKWKH LQFUHDVHGRUGHFUHDVHGE\HQGRUVHPHQWWRWKLVSROLF\LQFUHDVHGE\&RPSDQ\PD\EHOLDEOHE\YLUWXHRIWKLVSROLF\RU LLL LIWKH7LWOHDVLQVXUHGLV UHMHFWHGDV8QPDUNHWDEOH7LWOH,IWKH&RPSDQ\LVSUHMXGLFHGE\WKHIDLOXUHRIWKH 6HFWLRQ E RUGHFUHDVHGE\6HFWLRQVDQGRIWKHVH&RQGLWLRQV ,QVXUHG&ODLPDQWWRSURYLGHSURPSWQRWLFHWKH&RPSDQ\ VOLDELOLW\WRWKH,QVXUHG E ³'DWHRI3ROLF\´7KHGDWHGHVLJQDWHGDV³'DWHRI3ROLF\´LQ6FKHGXOH$ &ODLPDQWXQGHUWKHSROLF\VKDOOEHUHGXFHGWRWKHH[WHQWRIWKHSUHMXGLFH F ³(QWLW\´$FRUSRUDWLRQSDUWQHUVKLSWUXVWOLPLWHGOLDELOLW\FRPSDQ\RU RWKHUVLPLODUOHJDOHQWLW\ G ³,QVXUHG7KH,QVXUHGQDPHGLQ6FKHGXOH$3522)2)/266 ,QWKHHYHQWWKH&RPSDQ\LVXQDEOHWRGHWHUPLQHWKHDPRXQWRIORVVRU L 7KHWHUP,QVXUHGDOVRLQFOXGHV GDPDJHWKH&RPSDQ\PD\DWLWVRSWLRQUHTXLUHDVDFRQGLWLRQRISD\PHQWWKDW $ VXFFHVVRUVWRWKH7LWOHRIWKH,QVXUHGE\RSHUDWLRQRIODZDV WKH,QVXUHG&ODLPDQWIXUQLVKDVLJQHGSURRIRIORVV7KHSURRIRIORVVPXVWGHVFULEH GLVWLQJXLVKHGIURPSXUFKDVHLQFOXGLQJKHLUVGHYLVHHVVXUYLYRUV SHUVRQDOUHSUHVHQWDWLYHVRUQH[WRINLQWKHGHIHFWOLHQHQFXPEUDQFHRURWKHUPDWWHULQVXUHGDJDLQVWE\WKLVSROLF\WKDW % VXFFHVVRUVWRDQ,QVXUHGE\GLVVROXWLRQPHUJHUFRQVROLGDWLRQFRQVWLWXWHVWKHEDVLVRIORVVRUGDPDJHDQGVKDOOVWDWHWRWKHH[WHQWSRVVLEOHWKH EDVLVRIFDOFXODWLQJWKHDPRXQWRIWKHORVVRUGDPDJH GLVWULEXWLRQRUUHRUJDQL]DWLRQ & VXFFHVVRUVWRDQ,QVXUHGE\LWVFRQYHUVLRQWRDQRWKHUNLQGRI '()(16($1'3526(&87,212)$&7,216 (QWLW\ ' DJUDQWHHRIDQ,QVXUHGXQGHUDGHHGGHOLYHUHGZLWKRXW D 8SRQZULWWHQUHTXHVWE\WKH,QVXUHGDQGVXEMHFWWRWKHRSWLRQVFRQWDLQHG SD\PHQWRIDFWXDOYDOXDEOHFRQVLGHUDWLRQFRQYH\LQJWKH7LWOHLQ6HFWLRQWRUHSUHVHQWWKH QDPHG,QVXUHGDUHERWKZKROO\RZQHGE\WKHVDPHSHUVRQ ,QVXUHGDVWRWKRVHVWDWHGFDXVHVRIDFWLRQ,WVKDOOQRWEHOLDEOHIRUDQG RU(QWLW\RU LIWKHJUDQWHHLVDWUXVWHHRUEHQHILFLDU\RIDWUXVWFUHDWHGZLOOQRWSD\WKHIHHVRIDQ\RWKHUFRXQVHO7KH&RPSDQ\ZLOOQRWSD\DQ\ E\DZULWWHQLQVWUXPHQWHVWDEOLVKHGE\WKH,QVXUHGQDPHGIHHVFRVWVRUH[SHQVHVLQFXUUHGE\WKH,QVXUHGLQWKHGHIHQVHRIWKRVH LQ6FKHGXOH$IRUHVWDWHSODQQLQJSXUSRVHVFDXVHVRIDFWLRQWKDWDOOHJHPDWWHUVQRWLQVXUHGDJDLQVWE\WKLVSROLF\ E 7KH&RPSDQ\VKDOOKDYHWKHULJKWLQDGGLWLRQWRWKHRSWLRQVFRQWDLQHGLQ 3DFNHW3J )LUVW$PHULFDQ7LWOH,QVXUDQFH&RPSDQ\ 3ROLF\3DJH (D 3ROLF\1XPEHU 6HFWLRQWKLVSROLF\SHUPLWVRUUHTXLUHVWKH&RPSDQ\WR RIWKH7LWOHVXEMHFWWRWKHULVNLQVXUHGDJDLQVWE\WKLVSROLF\ SURVHFXWHRUSURYLGHIRUWKHGHIHQVHRIDQ\DFWLRQRUSURFHHGLQJDQGDQ\ E ,IWKH&RPSDQ\SXUVXHVLWVULJKWVXQGHU6HFWLRQRIWKHVH&RQGLWLRQVDQG DSSHDOVWKH,QVXUHGVKDOOVHFXUHWRWKH&RPSDQ\WKHULJKWWRVR SURVHFXWHRUSURYLGHGHIHQVHLQWKHDFWLRQRUSURFHHGLQJLQFOXGLQJWKHLVXQVXFFHVVIXOLQHVWDEOLVKLQJWKH7LWOHDVLQVXUHG ULJKWWRXVHDWLWVRSWLRQWKHQDPHRIWKH,QVXUHGIRUWKLVSXUSRVH L WKH$PRXQWRI,QVXUDQFHVKDOOEHLQFUHDVHGE\DQG LL WKH,QVXUHG&ODLPDQWVKDOOKDYHWKHULJKWWRKDYHWKHORVVRUGDPDJH :KHQHYHUUHTXHVWHGE\WKH&RPSDQ\WKH,QVXUHGDWWKH&RPSDQ\ V GHWHUPLQHGHLWKHUDVRIWKHGDWHWKHFODLPZDVPDGHE\WKH,QVXUHG H[SHQVHVKDOOJLYHWKH&RPSDQ\DOOUHDVRQDEOHDLG L LQVHFXULQJ HYLGHQFHREWDLQLQJZLWQHVVHVSURVHFXWLQJRUGHIHQGLQJWKHDFWLRQRU&ODLPDQWRUDVRIWKHGDWHLWLVVHWWOHGDQGSDLG SURFHHGLQJRUHIIHFWLQJVHWWOHPHQWDQG LL LQDQ\RWKHUODZIXODFWWKDWLQ F ,QDGGLWLRQWRWKHH[WHQWRIOLDELOLW\XQGHU D DQG E WKH&RPSDQ\ZLOO WKHRSLQLRQRIWKH&RPSDQ\PD\EHQHFHVVDU\RUGHVLUDEOHWRHVWDEOLVKDOVRSD\WKRVHFRVWVDWWRUQH\V IHHVDQGH[SHQVHVLQFXUUHGLQDFFRUGDQFH ZLWK6HFWLRQVDQGHG&ODLPDQWWRVXEPLWWR H[DPLQDWLRQXQGHURDWKE\DQ\DXWKRUL]HGUHSUHVHQWDWLYHRIWKH&RPSDQ\FRPSOHWLRQRIDQ\DSSHDOVLWVKDOOKDYHIXOO\SHUIRUPHGLWVREOLJDWLRQV DQGWRSURGXFHIRUH[DPLQDWLRQLQVSHFWLRQDQGFRS\LQJDWVXFKZLWKUHVSHFWWRWKDWPDWWHUDQGVKDOOQRWEHOLDEOHIRUDQ\ORVVRUGDPDJH UHDVRQDEOHWLPHVDQGSODFHVDVPD\EHGHVLJQDWHGE\WKHDXWKRUL]HGFDXVHGWRWKH,QVXUHG E ,QWKHHYHQWRIDQ\OLWLJDWLRQLQFOXGLQJOLWLJDWLRQE\WKH&RPSDQ\RUZLWK UHSUHVHQWDWLYHRIWKH&RPSDQ\DOOUHFRUGVLQZKDWHYHUPHGLXP WKH&RPSDQ\ VFRQVHQWWKH&RPSDQ\VKDOOKDYHQROLDELOLW\IRUORVVRU PDLQWDLQHGLQFOXGLQJERRNVOHGJHUVFKHFNVPHPRUDQGD FRUUHVSRQGHQFHUHSRUWVHPDLOVGLVNVWDSHVDQGYLGHRVZKHWKHUGDPDJHXQWLOWKHUHKDVEHHQDILQDOGHWHUPLQDWLRQE\DFRXUWRI EHDULQJDGDWHEHIRUHRUDIWHU'DWHRI3ROLF\WKDWUHDVRQDEO\SHUWDLQWRFRPSHWHQWMXULVGLFWLRQDQGGLVSRVLWLRQRIDOODSSHDOVDGYHUVHWRWKH7LWOH WKHORVVRUGDPDJH)XUWKHULIUHTXHVWHGE\DQ\DXWKRUL]HGDVLQVXUHG F 7KH&RPSDQ\VKDOOQRWEHOLDEOHIRUORVVRUGDPDJHWRWKH,QVXUHGIRU UHSUHVHQWDWLYHRIWKH&RPSDQ\WKH,QVXUHG&ODLPDQWVKDOOJUDQWLWV OLDELOLW\YROXQWDULO\DVVXPHGE\WKH,QVXUHGLQVHWWOLQJDQ\FODLPRUVXLW SHUPLVVLRQLQZULWLQJIRUDQ\DXWKRUL]HGUHSUHVHQWDWLYHRIWKH&RPSDQ\ WRH[DPLQHLQVSHFWDQGFRS\DOORIWKHVHUHFRUGVLQWKHFXVWRG\RUZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKH&RPSDQ\ FRQWURORIDWKLUGSDUW\WKDWUHDVRQDEO\SHUWDLQWRWKHORVVRUGDPDJH$OO 5('8&7,212),1685$1&(5('8&7,21257(50,1$7,212) LQIRUPDWLRQGHVLJQDWHGDVFRQILGHQWLDOE\WKH,QVXUHG&ODLPDQWSURYLGHG /,$%,/,7< WRWKH&RPSDQ\SXUVXDQWWRWKLV6HFWLRQVKDOOQRWEHGLVFORVHGWRRWKHUV $OOSD\PHQWVXQGHUWKLVSROLF\H[FHSWSD\PHQWVPDGHIRUFRVWVDWWRUQH\V¶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¶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³5XOHV´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imes New Roman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³$JUHHPHQW´ LVPDGHDVRIWKH +,6(50,1$7,212)(92&$%/((50,7*5((0(17 7HUPLQDWLRQ'DWH DVKHUHLQDIWHUGHILQHG E\DQGEHWZHHQ8UEDQRQ)LUVW//&D0LQQHVRWDOLPLWHG OLDELOLW\FRPSDQ\ ³2ZQHU´ DQGWKH&LW\RI5RFKHVWHUD0LQQHVRWD0XQLFLSDO&RUSRUDWLRQ ³&LW\´ 5 (&,7$/6 $3XUVXDQWWRWKDWFHUWDLQ5HYRFDEOH3HUPLW$JUHHPHQWGDWHGDVRI6HSWHPEHU DQGUHFRUGHGLQWKH2IILFHRIWKH2OPVWHG&RXQW\5HFRUGHURQ2FWREHUDV'RFXPHQW1R 7 (E QXOODQGYRLGDQGRIQRIXUWKHUIRUFHDQGHIIHFWDQGQHLWKHUSDUW\VKDOOKDYHDQ\IXUWKHUULJKWVOLDELOLWLHV RUREOLJDWLRQWKHUHXQGHU 0XWXDO5HOHDVH,QFRQVLGHUDWLRQRIWKHPXWXDODJUHHPHQWVDQGFRYHQDQWVFRQWDLQHG KHUHLQ2ZQHUDQG&LW\PXWXDOO\UHOHDVHWKHRWKHUIURPDQ\DQGDOOORVVFRVWGDPDJHH[SHQVHFODLPRU FKDUJHDULVLQJRXWRIRULQDQ\ZD\FRQQHFWHGZLWKWKH5HYRFDEOH3HUPLWLQFOXGLQJZLWKRXWOLPLWDWLRQ DQ\GHIDXOWE\&LW\RU2ZQHUXQGHUWKH5HYRFDEOH3HUPLW $XWKRULW\RI&LW\&LW\UHSUHVHQWVDQGZDUUDQWVWR2ZQHUWKDW&LW\KDVIXOOULJKWSRZHU DQGDXWKRULW\WRH[HFXWHGHOLYHUDQGSHUIRUPWKLV$JUHHPHQWWKDWWKHSHUVRQH[HFXWLQJWKLV$JUHHPHQW RQEHKDOIRI&LW\KDVIXOOULJKWSRZHUDQGDXWKRULW\WRELQG&LW\WRWKHWHUPVDQGFRQGLWLRQVRIWKLV $JUHHPHQWDQGWKDWDOOQHFHVVDU\PXQLFLSDODFWLRQKDVEHHQWDNHQE\&LW\WRGXO\DXWKRUL]HWKHH[HFXWLRQ GHOLYHU\DQGSHUIRUPDQFHRIWKLV$JUHHPHQW $XWKRULW\RI2ZQHU2ZQHUUHSUHVHQWVDQGZDUUDQWVWR&LW\WKDW2ZQHUKDVIXOOULJKW SRZHUDQGDXWKRULW\WRH[HFXWHGHOLYHUDQGSHUIRUPWKLV$JUHHPHQWWKDWWKHSHUVRQH[HFXWLQJWKLV $JUHHPHQWRQEHKDOIRI2ZQHUKDVIXOOULJKWSRZHUDQGDXWKRULW\WRELQG2ZQHUWRWKHWHUPVDQG FRQGLWLRQVRIWKLV$JUHHPHQWDQGWKDWDOOQHFHVVDU\FRPSDQ\DFWLRQKDVEHHQWDNHQE\2ZQHUWRGXO\ DXWKRUL]HWKHH[HFXWLRQGHOLYHU\DQGSHUIRUPDQFHRIWKLV$JUHHPHQW &RXQWHUSDUWV(OHFWURQLF6LJQDWXUHV7KLV$JUHHPHQWPD\EHH[HFXWHGLQWZR RU PRUHFRXQWHUSDUWVHDFKRIZKLFKVKDOOEHGHHPHGDQRULJLQDOEXWDOORIZKLFKWRJHWKHUVKDOOFRQVWLWXWH RQHDQGWKHVDPHLQVWUXPHQW&RXQWHUSDUWVPD\EHGHOLYHUHGYLDIDFVLPLOHHOHFWURQLFPDLO LQFOXGLQJSGI RUDQ\HOHFWURQLFVLJQDWXUHFRPSO\LQJZLWKWKH86IHGHUDO(6,*1$FWRIHJ ZZZGRFXVLJQFRP RURWKHUWUDQVPLVVLRQPHWKRGDQGDQ\FRXQWHUSDUWVRGHOLYHUHGVKDOOEHGHHPHGWR KDYHEHHQGXO\DQGYDOLGO\GHOLYHUHGDQGEHYDOLGDQGHIIHFWLYHIRUDOOSXUSRVHV >63)@ ,*1$785($*(722//2: 3DFNHW3J (E ,::WKHSDUWLHVKDYHGXO\H[HFXWHGWKLV$JUHHPHQWDVRIWKH7HUPLQDWLRQ 1,71(66+(5(2) 'DWH 2 :1(5 8)//& 5%$121,567 D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ %\ $QGUHZ&&KDIRXOLDV0DQDJHU 67$7(2)0,11(627$ 66 &2817<2)2/067(' 7KHIRUHJRLQJLQVWUXPHQWZDVDFNQRZOHGJHGEHIRUHPHWKLVBBGD\RIBBBBBBBB (F 35(3$5('%<$1':+(1 5(&25'('0$,/72 'XQODS 6HHJHU3$ $WWQ'DYLG03HGHUVRQ UG6WUHHW6(6XLWH 3RVW2IILFH%R[ 5RFKHVWHU01 7// (50,1$7,212)$1'($6( 77// WKLV³$JUHHPHQW´ LVPDGHDVRIWKH7HUPLQDWLRQ'DWH DV +,6(50,1$7,212)$1'($6( KHUHLQDIWHUGHILQHG E\DQGEHWZHHQ8UEDQRQ)LUVW//&D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ ³/HVVRU´ DQGWKH&LW\RI5RFKHVWHUD0LQQHVRWD0XQLFLSDO&RUSRUDWLRQ ³/HVVHH´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³$JUHHPHQW´ LVPDGHDVRIWKH +,6(50,1$7,212)$6(0(17*5((0(17 7HUPLQDWLRQ'DWH DVKHUHLQDIWHUGHILQHG E\DQGEHWZHHQ8UEDQRQ)LUVW//&D0LQQHVRWDOLPLWHG OLDELOLW\FRPSDQ\ ³*UDQWRU´ DQGWKH&LW\RI5RFKHVWHUD0LQQHVRWD0XQLFLSDO&RUSRUDWLRQ ³*UDQWHH´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³$JUHHPHQW´ LVPDGHDVRIWKH +,6(50,1$7,212)$6(0(17*5((0(17 7HUPLQDWLRQ'DWH DVKHUHLQDIWHUGHILQHG E\DQGEHWZHHQ8UEDQRQ)LUVW//&D0LQQHVRWDOLPLWHG OLDELOLW\FRPSDQ\ ³*UDQWRU´ DQGWKH&LW\RI5RFKHVWHUD0LQQHVRWD0XQLFLSDO&RUSRUDWLRQ ³*UDQWHH´ 5 (&,7$/6 $3XUVXDQWWRWKDWFHUWDLQ(DVHPHQW$JUHHPHQWGDWHGDVRI2FWREHU 3DFNHW3J (H 0XWXDO5HOHDVH,QFRQVLGHUDWLRQRIWKHPXWXDODJUHHPHQWVDQGFRYHQDQWVFRQWDLQHG KHUHLQ*UDQWRUDQG*UDQWHHPXWXDOO\UHOHDVHWKHRWKHUIURPDQ\DQGDOOORVVFRVWGDPDJHH[SHQVH FODLPRUFKDUJHDULVLQJRXWRIRULQDQ\ZD\FRQQHFWHGZLWKWKH(DVHPHQWLQFOXGLQJZLWKRXWOLPLWDWLRQ DQ\GHIDXOWE\*UDQWHHRU*UDQWRUXQGHUWKH(DVHPHQW $XWKRULW\RI*UDQWHH*UDQWHHUHSUHVHQWVDQGZDUUDQWVWR*UDQWRUWKDW*UDQWHHKDVIXOO ULJKWSRZHUDQGDXWKRULW\WRH[HFXWHGHOLYHUDQGSHUIRUPWKLV$JUHHPHQWWKDWWKHSHUVRQH[HFXWLQJWKLV $JUHHPHQWRQEHKDOIRI*UDQWHHKDVIXOOULJKWSRZHUDQGDXWKRULW\WRELQG*UDQWHHWRWKHWHUPVDQG FRQGLWLRQVRIWKLV$JUHHPHQWDQGWKDWDOOQHFHVVDU\PXQLFLSDODFWLRQKDVEHHQWDNHQE\*UDQWHHWRGXO\ DXWKRUL]HWKHH[HFXWLRQGHOLYHU\DQGSHUIRUPDQFHRIWKLV$JUHHPHQW $XWKRULW\RI*UDQWRU*UDQWRUUHSUHVHQWVDQGZDUUDQWVWR*UDQWHHWKDW*UDQWRUKDVIXOO ULJKWSRZHUDQGDXWKRULW\WRH[HFXWHGHOLYHUDQGSHUIRUPWKLV$JUHHPHQWWKDWWKHSHUVRQH[HFXWLQJWKLV $JUHHPHQWRQEHKDOIRI*UDQWRUKDVIXOOULJKWSRZHUDQGDXWKRULW\WRELQG*UDQWRUWRWKHWHUPVDQG FRQGLWLRQVRIWKLV$JUHHPHQWDQGWKDWDOOQHFHVVDU\FRPSDQ\DFWLRQKDVEHHQWDNHQE\*UDQWRUWRGXO\ DXWKRUL]HWKHH[HFXWLRQGHOLYHU\DQGSHUIRUPDQFHRIWKLV$JUHHPHQW &RXQWHUSDUWV(OHFWURQLF6LJQDWXUHV7KLV$JUHHPHQWPD\EHH[HFXWHGLQWZR RU PRUHFRXQWHUSDUWVHDFKRIZKLFKVKDOOEHGHHPHGDQRULJLQDOEXWDOORIZKLFKWRJHWKHUVKDOOFRQVWLWXWH RQHDQGWKHVDPHLQVWUXPHQW&RXQWHUSDUWVPD\EHGHOLYHUHGYLDIDFVLPLOHHOHFWURQLFPDLO LQFOXGLQJSGI RUDQ\HOHFWURQLFVLJQDWXUHFRPSO\LQJZLWKWKH86IHGHUDO(6,*1$FWRIHJ ZZZGRFXVLJQFRP RURWKHUWUDQVPLVVLRQPHWKRGDQGDQ\FRXQWHUSDUWVRGHOLYHUHGVKDOOEHGHHPHGWR KDYHEHHQGXO\DQGYDOLGO\GHOLYHUHGDQGEHYDOLGDQGHIIHFWLYHIRUDOOSXUSRVHV >63)@ ,*1$785($*(722//2: 3DFNHW3J (H ,::WKHSDUWLHVKDYHGXO\H[HFXWHGWKLV$JUHHPHQWDVRIWKH7HUPLQDWLRQ 1,71(66+(5(2) 'DWH * 5$1725 8)//& 5%$121,567 D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ %\ $QGUHZ&&KDIRXOLDV0DQDJHU 67$7(2)0,11(627$ 66 &2817<2)2/067(' 7KHIRUHJRLQJLQVWUXPHQWZDVDFNQRZOHGJHGEHIRUHPHWKLVBBGD\RIBBBBBBBB ( 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< (VWDEOLVK7ZR+RXU3DUNLQJ=RQH1RUWKVLGHRI(DVW&HQWHU6WIURPWK$YH1( .HLWK5XRQD WRIHHWWRWKHHDVW 7KH3XEOLF:RUNV7UDIILF'HSWKDVUHFHLYHGDSHWLWLRQUHTXHVWLQJWKHFUHDWLRQRID³7ZR+RXU3DUNLQJ´]RQHRQ WK WKHQRUWKVLGHRI(DVW&HQWHU6WUHHWIURPWKHLQWHUVHFWLRQRI$YHQXH1(WRIHHWWRWKHHDVW7KLV SURSRVHG]RQHZRXOGUHVWULFWSDUNLQJWRWZRKRXUVIURP$0WR300RQGD\WKURXJK)ULGD\7KH WKWK QRUWKVLGHRI(DVW&HQWHU6WUHHWEHWZHHQ$YHQXHDQG$YHQXH(DVWFXUUHQWO\KDVD³123$5.,1*´ ]RQHLQSODFHLQWKHEORFNDQGZRXOGUHPDLQDVLV7KHSURSRVHG³+RXU´SDUNLQJ]RQHZRXOGDEXWWKH H[LVWLQJ³1R3DUNLQJ´]RQH 7KHUHVLGHQWVRQWKHEORFNRI(DVW&HQWHU6WUHHWLQLWLDWHGWKLVSHWLWLRQDQGDVNHGWKDWWKH'HSDUWPHQWRI 3XEO LF:RUNVFUHDWHWKLV³+RXU3DUNLQJ´]RQHWRKHOSUHGXFHFRQJHVWL RQDQGSURYLGHPRUHURRPIRUVKRUW WHUPSDUNLQJIRUWKHQHLJKERUKRRGUHVLGHQWV 7KHSHWLWLRQZDVVXEPLWWHGWR3XEOLF:RUNV7UDIILF'LYLVLRQUHTXHVWLQJWKLVSDUNLQJFKDQJH6LJQDWXUHVIURP WKHUHVLGHQWVDQGRZQHUVIRUDOOSDUFHOVDORQJWKHQRUWKVLGHRIWKHEORFNRIWKHVWUHHWDUHUHSUHVHQWHGRQ WKHSHWLWLRQ j $9(1( 671( $9(1( )HHW $9(1( 671( $9(1( $9(1( 671( 671( 671( 671( 671( $9(1( $9(1( 3URSRVHG+285([LVWLQJ12 $9(1( 3$5.,1*=RQH3$5.,1*=RQH &(17(567( $9(6( 7,215(48(67(' $GGSDUDJUDSKWR6HFWLRQ+=RQH)±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³$PHQGPHQW´ LVPDGHDVRI )HEUXDU\BBE\%'.1///3D0LQQHVRWDOLPLWHGOLDELOLW\OLPLWHGSDUWQHUVKLS ³3DUWQHUVKLS´ DQGWKH&LW\RI5RFKHVWHUD0LQQHVRWDPXQLFLSDOFRUSRUDWLRQ WKH³&LW\´ 5(&,7$/6 $:+(5($6WKH3DUWQHUVKLSDVVXFFHVVRULQLQWHUHVWWR'%DU0//&D0LQQHVRWD OLPLWHGOLDELOLW\FRPSDQ\DQG&LW\ZKLFKHQWHUHGLQWRWKDWFHUWDLQ5HYRFDEOH3HUPLWDQG $JUHHPHQWGDWHG0DUFK (D $*5((0(17 12:7+(5()25(IRUJRRGDQGYDOXDEOHFRQVLGHUDWLRQWKHUHFHLSWDQGVXIILFLHQF\RI ZKLFKLVKHUHE\DFNQRZOHGJHGWKHSDUWLHVDJUHHDVIROORZV 7KH3HUPLWVKDOOKHUHE\EHDPHQGHGWRLQFOXGHWKHIROORZLQJSURYLVLRQ ³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imes New Roman]] [[863,2917,1685,2974][12][,I,][Times New Roman]]>6LJQDWXUHVFRQWLQXHRQIROORZLQJSDJH@ [[1687,2917,1699,2974][12][,I,][Times New Roman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ƚŚĞŽƌĚŝŶĂŶĐĞƌĞǀŝƐŝŽŶĨŽƌĨŝƌƐƚƌĞĂĚŝŶŐ͘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hD WZ</E'Wzz>>W,KEZKDDEd/KE WZK:dηϮϭͲϰϯϭϱ͘ϬϬ ϭϲϲϬ^ŽƵƚŚ,ŝŐŚǁĂLJϭϬϬ͕^ƵŝƚĞϱϰϱ DŝŶŶĞĂƉŽůŝƐ͕DEϱϱϰϭϲ d͗EŽǀĞŵďĞƌϮϮ͕ϮϬϭϳ dŽŶLJ<ŶĂƵĞƌ dK͗ ϵϱϮ͘ϱϵϱ͘ϵϭϭϲ ŝƚLJŽĨZŽĐŚĞƐƚĞƌǁĂůŬĞƌĐŽŶƐƵůƚĂŶƚƐ͘ĐŽŵ KDWEz͗ ϰϯϬϬĂƐƚZŝǀĞƌZŽĂĚ Z^^͗ ZŽĐŚĞƐƚĞƌDEϱϱϵϬϲ /dzͬ^dd͗ KWzdK͗ DĐ'ĂŶŶ͕ƌŝĂŶ &ZKD͗ ŝƚLJŽĨZŽĐŚĞƐƚĞƌWĂLJďLJĞůůWŚŽŶĞZĞĐŽŵŵĞŶĚĂƚŝŽŶ WZK:dED͗ ϮϭͲϰϯϭϱ͘ϬϬ WZK:dEhDZ͗ tĂůŬĞƌŽŶƐƵůƚĂŶƚƐĐŽŶĐƵƌƐǁŝƚŚƚŚĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶŽĨƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌƐĞůĞĐƚŝŽŶĐŽŵŵŝƚƚĞĞŝŶƐĞůĞĐƚŝŶŐ ƚŚĞWĂƌŬDŽďŝůĞƌĞƐƉŽŶƐĞĂƐƚŚĞƐƵƉĞƌŝŽƌĐŚŽŝĐĞ͘&ŽůůŽǁŝŶŐŝƐŽƵƌƌĞĂƐŽŶŝŶŐŝŶĐŽŵƉĂƌŝŶŐƚŚĞĨŝŶĂůŝƐƚƐ͕WĂƐƐƉŽƌƚ ĂŶĚWĂƌŬDŽďŝůĞ͗ ϭ͘WĂƌŬDŽďŝůĞŚĂƐƚŚĞůĂƌŐĞƐƚƵƐĞƌďĂƐĞŝŶƚŚĞh^͕ůĞĂĚŝŶŐƚŽŵŽƌĞĐŽŶƐƵŵĞƌƐǁŚŽĂůƌĞĂĚLJŚĂǀĞƚŚĞĂƉƉ͘ Ϯ͘WĂƌŬDŽďŝůĞŝŶĐůƵĚĞƐƚŚĞůĂƌŐĞƐƚDŝŶŶĞƐŽƚĂĐŝƚLJŽĨDŝŶŶĞĂƉŽůŝƐĂƐĂĐůŝĞŶƚ͕ůĞĂĚŝŶŐƚŽĂůĂƌŐĞŶĞĂƌďLJďĂƐĞ ŽĨƵƐĞƌƐǁŚŽĂůƌĞĂĚLJŚĂǀĞŝŶƐƚĂůůĞĚƚŚĞĂƉƉ͘ ϯ͘dŚĞWĂƌŬDŽďŝůĞƌĞĨĞƌĞŶĐĞĐĂůůǁŝƚŚƚŚĞŝƚLJŽĨDŝŶŶĞĂƉŽůŝƐ͕ǁĂƐƵŶŝǀĞƌƐĂůůLJĐŽŵƉůŝŵĞŶƚĂƌLJ͘/ŶĐŽŶƚƌĂƐƚ ƚŚĞWĂƐƐƉŽƌƚĐĂůůƚŽ^ƚ͘WĂƵů͕ŶŽƚĞĚƐĂƚŝƐĨĂĐƚŽƌLJďƵƚŶŽƚĞŶƚŝƌĞůLJƚƌŽƵďůĞͲĨƌĞĞƉĞƌĨŽƌŵĂŶĐĞ͘ ϰ͘dŚĞŝŶƚĞƌǀŝĞǁĂŶĚƉƌĞƐĞŶƚĂƚŝŽŶďLJWĂƌŬDŽďŝůĞǁĂƐƚŚĞŵŽƐƚŝŵƉƌĞƐƐŝǀĞ͕ĚĞƐĐƌŝďŝŶŐŝŶĚĞƚĂŝůŶƵŵĞƌŽƵƐ ĞdžĂŵƉůĞƐŽĨƐƚƌĂƚĞŐŝĞƐƵŶĚĞƌƚĂŬĞŶƚŽƉƌŽŵŽƚĞƵƐĞĂŶĚŵĂŶĂŐĞĂďŝůŝƚLJŽĨƚŚĞƐLJƐƚĞŵ͘ ϱ͘dŚĞWĂƌŬŵŽďŝůĞƌĞƐƉŽŶƐĞŶŽƚĞƐŽǁŶĞƌƐŚŝƉƚŚĂƚŝŶĐůƵĚĞǁĞůůŬŶŽǁŶĂŶĚƐƚĂďůĞĐŽŵƉĂŶŝĞƐ͘ /ŶƐƵŵŵĂƌLJ͕ŝƚŝƐŽƵƌŽƉŝŶŝŽŶƚŚĂƚƚŚĞWĂƌŬDŽďŝůĞƌĞƐƉŽŶƐĞŽĨĨĞƌƐƚŚĞďĞƐƚƉĞƌĨŽƌŵĂŶĐĞĨŽƌƚŚĞŝƚLJŽĨ ZŽĐŚĞƐƚĞƌ͘ ͮϭ 3DFNHW3J DĂŶLJĚĞǀŝĂƚŝŽŶƐĨƌŽŵƐƉĞĐ͕ĞŶƚŝƌĞůLJĚŝĨĨĞƌĞŶƚ ďƵƐŝŶĞƐƐŵŽĚĞůƉƌŽƉŽƐĞĚ͕ĨĞǁŝŶƐƚĂůůĂƚŝŽŶƐ͘ sĂƌŝĞƐϵϵ͘ϬͲϭϬϬй͕ŶŽŶͲƐƉĞĐŝĨŝĞĚƌĞŵĞĚŝĞƐ hŶĐůĞĂƌ͘^ĂLJƐΗĐŽŵƉůLJΗ͕ĂŶĚΗŶŽůŝŵŝƚƐŽŶ ƐƵƉƉŽƌƚĞĚůĂŶŐƵĂŐĞƐΗ EŽƚĂǀĂŝůĂďůĞ EŽŶĞ EŽEŽ /ŶƐƚĂůůĂƚŝŽŶƐĂƌĞŵŽƐƚůLJŝŶĂŶĂĚĂĂŶĚ ϵϵ͘ϵй͕ďƵƚƵŶƐƉĞĐŝĨŝĞĚƌĞŵĞĚŝĞƐ EŽ^ƉĂŶŝƐŚ͕ďƵƚŚĂƐ&ƌĞŶĐŚ ĞůƐĞǁŚĞƌĞŝŶh^ EŽƚĂǀĂŝůĂďůĞ EŽŶĞ zĞƐ EŽ ΨϬ͘ϯϬ ůĂŝŵƚŽďĞůĂƌŐĞƐƚŝŶDŝĚǁĞƐƚ͘ϮŶĚŝŶƐŝnjĞƚŽ EŽ͕ĐůĂŝŵďŽƚŚǁŝůůďĞĂǀĂŝůĂďůĞǁŝƚŚŝŶĂLJĞĂƌ zĞƐĂŶĚĨƵƌƚŚĞƌĐůĂŝŵƚŽďĞŽŶůLJŽŶĞƚŽŬĞĞƉ ^ƚ͘WĂƵů͕ŚŝĐĂŐŽ͕KŵĂŚĂ͕ĞƚƌŽŝƚ͕>ĂƌŽƐƐĞ͕ ĨƵŶĚƐǁŝƚŚŝŶŝƚLJĂĐĐŽƵŶƚƐĂŶĚŶŽƚĐŽͲ zĞƐ͕^ƉĂŶŝƐŚĂŶĚĂůƐŽ&ƌĞŶĐŚ ŵŝŶŐůĞĚǁŝƚŚŽƚŚĞƌĨƵŶĚƐ͘ WĂƌŬDŽďŝůĞŽǀĞƌĂůů͘ ƵůƵƚŚ͕KŵĂŚĂ zĞƐ͕ϵϵ͘Ϭй ΨϬ͘ϮϬ /ŶĚŝĂŶĂƉŽůŝƐ͕^ƚ>ŽƵŝƐ͕DŝůǁĂƵŬĞĞWŝƚƚƐďƵƌŐŚ͘ DŝŶŶĞĂƉŽůŝƐ͕<ĂŶƐĂƐŝƚLJ͕'ƌĂŶĚZĂƉŝĚƐD/͕ EŽ͕ŶŽƚŝŶƉƉ͘,ŽǁĞǀĞƌĚŽŚĂǀĞŵƵůƚŝͲ EŽ͕ĐůĂŝŵƉƉůĞWĂLJƚŚŝƐƵƚƵŵŶ >ĂƌŐĞƐƚŶƵŵĞƌŽĨĐůŝĞŶƚƐŝŶh^ ůĂŶŐƵĂŐĞƐƵƉƉŽƌƚƐƚĂĨĨ͘ zĞƐ͕ϵϵ͘Ϭй zĞƐ ^ĞƌǀŝĐĞ>ĞǀĞůŐƌĞĞŵĞŶƚͬZĞŵĞĚŝĞƐ ( 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< &RQWUDFW([WHQVLRQ'XQFDQ6ROXWLRQV 7RQ\.QDXHU ,Q-DQXDU\WKH&LW\DZDUGHGD\HDUFRQWUDFWWR'XQFDQ6ROXWLRQVWKURXJKDFRPSHWLWLYHSURFHVVIRUWKH LPSOHPHQWDWLRQRIDKRVWHGZLUHOHVVSDUNLQJHQIRUFHPHQWV\VWHP7KHFRQWUDFWUXQVWKURXJK-DQXDU\ 7KHSURJUDPLQFOXGHVGDWDWRHQIRUFHPHQWKDQGKHOGVDFFHVVWRPRWRUYHKLFOHUHFRUGVDQGLQWHJUDWLRQ ZLWKSD\E\VSDFHSD\E\SKRQHUHVLGHQWLDOSHUPLWVWRZLQJOLVWVHWFDQGZHERUSKRQHSD\PHQW&XUUHQWO\ RYHURIWKH&LW\ VSDUNLQJFLWDWLRQVDUHSDLGYLDZHERUSKRQH7KHFRQWUDFWSURYLGHVDQDQQXDOKRVWLQJIHH SOXVDFRQYHQLHQFHIHHIRUHOHFWURQLFSD\PHQW 'XQFDQLVSURSRVLQJDQHZVRIWZDUHSODWIRUP*WHFKQDIRUDOOWKH&LW\ VHQIRUFHPHQWLQWHUIDFH ,WLV LQWHUHVWLQJWRQRWHWKDW*WHFKQDZDVWKHVHFRQGFKRLFHLQWKHRULJLQDOHYDOXDWLRQ7KHWHFKQLFDOFRPPLWWHH MXGJHGWKHLUVRIWZDUHWREHPRUHDGYDQFHG 'XQFDQLVDOUHDG\SURYLGLQJ*WHFKDIRUWKH&LW\ V/LFHQVH3ODWH 5HFRJQLWLRQ /35 DQG5HVLGHQWLDO3HUPLW3URJUDP'XQFDQKDVDOVREHHQXVLQJ*WHFKQDIRUWKHLULQWHJUDWLRQ RISD\E\SKRQHLQFOXGLQJ3DUNPRELOH 6WDIILVUHFRPPHQGLQJ3DUNPRELOHDVWKHSD\E\SKRQHSURYLGHU 'XQFDQZLOODOVRSURYLGHWKHHQIRUFHPHQWKDQGKHOGV WDEOHWRUUXJJHGL]HGFHOOSKRQH GHSHQGLQJRQ53' V SUHIHUHQFHDWQRFKDUJH'XQFDQKDVUHTXHVWHGLQH[FKDQJHDQH[WHQVLRQRIWKHKRVWLQJFRQWUDFWIRUWKUHH \HDUVRUWKURXJK$OOH[LVWLQJWHUPVZRXOGFRQWLQXH 6WDIIIURP3XEOLF:RUNV,753'DQG&OHUNVUHYLHZHGWKHV\VWHPLQWKHIDOODQGZHUHIDYRUDEOHWRWKHVRIWZDUH DQGLWVLPSURYHGIHDWXUHV $GHFLVLRQZDVGHOD\HGSHQGLQJVHOHFWLRQRIWKHSD\E\SKRQHYHQGRU 7KH VRIWZDUHLVDOUHDG\EHLQJXVHGIRU/35DQGUHVLGHQWLDOSHUPLWV,WZLOOSURYLGHIRUDQHDVLHULQWHJUDWLRQRISD\E\ SKRQH,WZLOOSURYLGHIRUEHWWHUPDQDJHPHQWDQGRYHUVLJKWE\53'HQIRUFHPHQWIRUURXWLQJWUDFNLQJDQG VWDWLVWLFDODQDO\VLV &281&,/$&7,215(48(67(' $GRSWWKHSUHSDUHGUHVROXWLRQDSSURYLQJDWKUHH\HDUH[WHQVLRQ WKURXJK RIWKHFRQWUDFWZLWK 'XQFDQ6ROXWLRQVIRULWVKRVWHGZLUHOHVVSDUNLQJV\VWHPDWWKHVDPHWHUPVZLWKDGGLWLRQRI*WHFKQDVRIWZDUH DQGLPSURYHGKDQGKHOGGHYLFHV 3DFNHW3J ( 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV3XEOLF:RUNV ,7(0'(6&5,37,2135(3$5('%< )LUVW6XSSOHPHQWDO$PHQGPHQWWR'HYHORSPHQW$JUHHPHQW$OSKD3URSHUW\ 0DUN%DNHU 'RFXPHQW$ (D ),5676833/(0(17$/$0(1'0(17 72'(9(/230(17$*5((0(17$ (D 3DFNHW3J (D 72*(7+(5:,7+ 72*(7+(5:,7+ /RW%ORFN$OSKD6XEGLYLVLRQ2OPVWHG&RXQW\0LQQHVRWD +HUHLQDIWHUUHIHUUHGWRLQWKLVGRFXPHQWDVWKH³$PHQGPHQW3URSHUW\´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dŚĞWƵďůŝĐtŽƌŬƐĞƉĂƌƚŵĞŶƚƌĞƋƵĞƐƚƚŚĞŝƚLJŽƵŶĐŝůĂĚŽƉƚĂƌĞƐŽůƵƚŝŽŶĂĚĚŝŶŐĂŶĚĚĞůĞƚŝŶŐƚŚĞĨŽůůŽǁŝŶŐƌŽĂĚ ƐĞŐŵĞŶƚƐƚŽƚŚĞŝƚLJΖƐDƵŶŝĐŝƉĂů^ƚĂƚĞŝĚ^LJƐƚĞŵ;D^^Ϳ͗ ĚĚƐ͗ tĞƐƚZŝǀĞƌWŬǁLJĨƌŽŵϯϳƚŚ^ƚEtƚŽϱϱƚŚ^ƚEtϭ͘ϰϮŵŝůĞƐ DĂLJŽǁŽŽĚZĚ^tĨƌŽŵĂŵďĞƌsĂůůĞLJZĚƚŽϭϲƚŚ^ƚ^tϭ͘ϯϳŵŝůĞƐ ϯƌĚǀĞ^ĨƌŽŵƌŽĂĚǁĂLJƚŽϮϬƚŚ^ƚ^Ϭ͘ϯϮŵŝůĞƐ ĞůĞƚĞƐ͗ ϱϱƚŚ^ƚEtĨƌŽŵd,ϱϮ͘&ƌŽŶƚĂŐĞZĚƚŽt͘ZŝǀĞƌWŬǁLJϭ͘ϱϳŵŝůĞƐ ƚƚŚĞĞŶĚŽĨĞĐĞŵďĞƌϮϬϭϳ͕ZŽĐŚĞƐƚĞƌŚĂĚϮ͘ϰŵŝůĞƐŽĨƵŶͲĚĞƐŝŐŶĂƚĞĚŵŝůĞĂŐĞ͘ tŝƚŚĂĚŽƉƚŝŽŶŽĨƚŚĞĂďŽǀĞĂĐƚŝŽŶ͖ZŽĐŚĞƐƚĞƌΖƐƵŶͲĚĞƐŝŐŶĂƚĞĚŵŝůĞĂŐĞǁŝůůďĞϬ͘ϴϲŵŝůĞƐ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ƵƚŚŽƌŝnjĞƚŚĞDĂLJŽƌĂŶĚƚŚĞŝƚLJůĞƌŬƚŽĞdžĞĐƵƚĞƚŚĞŽŵŵĞƌĐŝĂůͲ/ŶĚƵƐƚƌŝĂůdžĐůƵƐŝǀĞ>ŝƐƚŝŶŐŐƌĞĞŵĞŶƚ>ĞĂƐĞǁŝƚŚ WĂƌĂŵĂƌŬZĞĂůƐƚĂƚĞ^ĞƌǀŝĐĞƐĨŽƌůĞĂƐĞůŝƐƚŝŶŐŽĨƚŚĞϯϴϬϬďƵŝůĚŝŶŐƉƌŽƉĞƌƚLJ͘ 3DFNHW3J (D 3DFNHW3J (D 3DFNHW3J (E 3DFNHW3J (E 3DFNHW3J 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 +HDULQJV&LW\$GPLQLVWUDWLRQ ,7(0'(6&5,37,2135(3$5('%< 3XEOLF+HDULQJ*XLGHOLQHV %UHQW6YHQE\ 38%/,&+($5,1*6 7KHIROORZLQJUXOHVVKDOOJRYHUQWKHSURFHGXUHXVHGIRUDOOSXEOLFKHDULQJV 7KHDSSOLFDQWDORQJZLWKWKHLUUHSUHVHQWDWLYH V ZLOOEHDOORZHGWRSUHVHQWIRUD x WRWDORIPLQXWHVWRVWDUWWKHKHDULQJDQGSURYLGHGPLQXWHVIRUUHEXWWDODWWKH HQGRIWKHKHDULQJ $OORWKHUVSHDNHUVZLOOEHOLPLWHGWRPLQXWHVHDFK x 6SHDNHUVPD\RQO\VSHDNRQFHGXULQJDJLYHQSXEOLFKHDULQJ x &RXQFLOPHPEHUVPD\DVNTXHVWLRQVRIDSHUVRQZKRKDVDOUHDG\VSRNHQ x *URXSVZKRKDYHDVLPLODUYLHZRQWKHPDWWHUEHLQJKHDUGDUHHQFRXUDJHGWR x GHVLJQDWHDVSRNHVSHUVRQ :KHQDSSURSULDWHSULRULW\ZLOOEHJLYHQWRWKRVHVSHDNHUVZKRPD\EHLPPHGLDWHO\ x LPSDFWHGE\WKH&RXQFLO·VGHFLVLRQHJQHLJKERUKRRGUHVLGHQWV $WLPHUZLOOEHXVHGWRPDQDJHVSHDNHUWLPHV2QFHVWDUWHGWKHWLPHUZLOOGLVSOD\ x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rial]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHDUHVROXWLRQZLWK [[150,208,666,265][12][B,I,][Arial]]ILQGLQJVVXSSRUWLQJWK [[667,208,950,265][12][B,I,][Arial]]HLUGHFLVLRQ 3DFNHW3J *D IW1RWLILFDWLRQ$UHDRI 3UHOLPLQDU\3ODW5 *E 5 5RFKHVWHU2OPVWHG3ODQQLQJ'HSDUWPHQW_&DPSXV'ULYH6(6XLWH_5RFKHVWHU013DFNHW3J *E 5 *E 5 *E 5³$´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rial Narrow]]7KHKDQGWRUHDFKIRU« [[2324,665,2332,705][8][,I,][Arial Narrow]] '$7('HFHPEHUXLOGLQJV $OOEXLOGLQJVDUHUHTXLUHGWRGLVSOD\WKHSURSHUVWUHHWDGGUHVVQXPEHURQWKHEXLOGLQJIURQWZKLFKLV SODLQO\YLVLEOHDQGOHJLEOHIURPWKHVWUHHWIURQWLQJWKHSURSHUW\1XPEHUVL]HPXVWEHDPLQLPXP´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ŝƚLJWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐŽŵŵŝƐƐŝŽŶDŝŶƵƚĞƐ,ĞĂƌŝŶŐĂƚĞ͗:ĂŶƵĂƌLJϭϬ͕ϮϬϭϴ DƐ͘DĞĞŬŵĂĚĞĂŵŽƚŝŽŶƚŽĂƉƉƌŽǀĞƚŚĞĨŽůůŽǁŝŶŐĐŽŶƐĞŶƚŝƚĞŵƐ͘Dƌ͘tĂůƚĞƌƐƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘ x ĞĐĞŵďĞƌϭϯ͕ϮϬϭϳŵŝŶƵƚĞƐ dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚϰͲϬ͘Dƌ͘ĂƐƚƌŽ͕Dƌ͘,ŝůůĂŶĚDƌ͘'ŽŽĚĞŶďĞƌŐĞƌĂďƐƚĂŝŶĞĚ͘ WƵďůŝĐ,ĞĂƌŝŶŐƐ͗ WƌĞůŝŵŝŶĂƌLJWůĂƚZϮϬϭϳͲϬϯϲW>d͕ďLJƌĐŽŶĞǀĞůŽƉŵĞŶƚ͕ƚŽďĞŬŶŽǁŶĂƐ^ƵŵŵŝƚWŽŝŶƚĞ^ŝdžƚŚĂŶĚ ^ĞǀĞŶƚŚ͕ĨŽƌĚĞǀĞůŽƉŵĞŶƚĐŽŶƐŝƐƚŝŶŐŽĨϯϱƌĞƐŝĚĞŶƚŝĂůůŽƚƐĂŶĚϱŽƵƚůŽƚƐŽŶϭϲ͘ϵϳĂĐƌĞƐ͘dŚĞƐŝƚĞŝƐ ůŽĐĂƚĞĚƐŽƵƚŚŽĨ^ƵŵŵŝƚWŽŝŶƚĞZŽĂĚEt͕ŶŽƌƚŚŽĨtŚŝƚĞWŝŶĞƌŝǀĞEt͕ĂƉƉƌŽdžŝŵĂƚĞůLJϳϬϬĨĞĞƚƚŽ ƚŚĞĞĂƐƚŽĨϱϬƚŚǀĞŶƵĞEt͘ DƐ͘^ŽƐĂƉƌĞƐĞŶƚĞĚƚŚĞƐƚĂĨĨƌĞƉŽƌƚ͕ĚĂƚĞĚ:ĂŶƵĂƌLJϭϬ͕ϮϬϭϴ͕ƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͘dŚĞƐƚĂĨĨƌĞƉŽƌƚŝƐŽŶ ĨŝůĞĂƚƚŚĞZŽĐŚĞƐƚĞƌͲKůŵƐƚĞĚWůĂŶŶŝŶŐĞƉĂƌƚŵĞŶƚ͘ DƐ͘tŝůƐŽŶŽƉĞŶĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘ŝůůdŽŝŶƚŽŶ͕ĐŽŶƐƵůƚĂŶƚǁŝƚŚt^ΘƐƐŽĐŝĂƚĞƐ͕ϭϲϰϴdŚŝƌĚǀĞŶƵĞ^͕ZŽĐŚĞƐƚĞƌDE͕ĂĚĚƌĞƐƐĞĚƚŚĞ ŽŵŵŝƐƐŝŽŶ͘,ĞƉƌĞƐĞŶƚĞĚĂƐƵŵŵĂƌLJŽĨƚŚĞƉƌŽũĞĐƚ͖ŶŽƚĞĚƚŚĞLJĂƌĞŝŶĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞƐƚĂĨĨ ĐŽŶĚŝƚŝŽŶƐĂŶĚĂƌĞĂǀĂŝůĂďůĞĨŽƌƋƵĞƐƚŝŽŶƐ͘ tŝƚŚŶŽŽŶĞĞůƐĞǁŝƐŚŝŶŐƚŽďĞŚĞĂƌĚ͕DƐ͘tŝůƐŽŶĐůŽƐĞĚƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ Dƌ͘ƵƌƐƚŵŽǀĞĚƚŽƌĞĐŽŵŵĞŶĚĂƉƉƌŽǀĂůŽĨWƌĞůŝŵŝŶĂƌLJWůĂƚZϮϬϭϳͲϬϯϲW>dǁŝƚŚƚŚĞƐƚĂĨĨͲ ƌĞĐŽŵŵĞŶĚĞĚĨŝŶĚŝŶŐƐĂŶĚĐŽŶĚŝƚŝŽŶƐ͘DƐ͘DĞĞŬƐĞĐŽŶĚĞĚƚŚĞŵŽƚŝŽŶ͘dŚĞŵŽƚŝŽŶĐĂƌƌŝĞĚ ƵŶĂŶŝŵŽƵƐůLJ͘ KE/d/KE^͗ ϭ͘dŚĞWƌĞůŝŵŝŶĂƌLJWůĂƚŵƵƐƚďĞƵƉĚĂƚĞĚǁŝƚŚƚŚĞĨŽůůŽǁŝŶŐŝŶĨŽƌŵĂƚŝŽŶ͕ƉƌŝŽƌƚŽƐƵďŵŝƚƚĂů ŽĨƚŚĞ&ŝŶĂůWůĂƚ͗ Ă͘>ĂďĞůƚŚĞϯϬĨŽŽƚĚƌĂŝŶĂŐĞĞĂƐĞŵĞŶƚĂůŽŶŐƚŚĞƐŽƵƚŚĞƌŶĞŶĚŽĨƉƌŽƉŽƐĞĚ>ŽƚƐϮͲϴ͕ ůŽĐŬϯ͕^ƵŵŵŝƚWŽŝŶƚĞ^ĞǀĞŶƚŚ͘ ď͘dŚĞ^ŝƚĞĂƚĂ^ƵŵŵĂƌLJdĂďůĞŵƵƐƚŝĚĞŶƚŝĨLJƚŚĞ͞ZͲϮ͟njŽŶŝŶŐĚŝƐƚƌŝĐƚ͘ Ϯ͘ŶĂƉƉƌŽǀĞĚ'ƌĂĚŝŶŐĂŶĚ^ƚŽƌŵtĂƚĞƌDĂŶĂŐĞŵĞŶƚWůĂŶǁŝůůďĞƌĞƋƵŝƌĞĚďĞĨŽƌĞ ƐƵďŵŝƚƚĂůŽĨƚŚĞ&ŝŶĂůWůĂƚƐ͘ ϯ͘KǁŶĞƌƐŚŝƉĂŶĚŵĂŝŶƚĞŶĂŶĐĞŽĨƉƌŽƉŽƐĞĚKƵƚůŽƚ͕͟͞^ƵŵŵŝƚWŽŝŶƚĞ^ĞǀĞŶƚŚ͕ǁŝůůŶĞĞĚƚŽ ďĞĂĚĚƌĞƐƐĞĚŝŶĂĞǀĞůŽƉŵĞŶƚŐƌĞĞŵĞŶƚ͕ŽƌƐŝŵŝůĂƌĚŽĐƵŵĞŶƚ͕ƉƌŝŽƌƚŽƌĞĐŽƌĚŝŶŐƚŚĞ &ŝŶĂůWůĂƚ͘ ϰ͘džĞĐƵƚŝŽŶŽĨĂŝƚLJͲKǁŶĞƌŽŶƚƌĂĐƚ͕ĂŶĚĚĞĚŝĐĂƚŝŽŶŽĨĂŶLJĂƉƉůŝĐĂďůĞƉƵďůŝĐĞĂƐĞŵĞŶƚƐ͕ ŝƐƌĞƋƵŝƌĞĚƉƌŝŽƌƚŽĐŽŶƐƚƌƵĐƚŝŽŶŽĨĂŶLJƉƵďůŝĐŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘ ϱ͘ ŚĂƌŐĞƐͬĨĞĞƐĂƉƉůŝĐĂďůĞƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚŝƐWƌŽƉĞƌƚLJĂƌĞͬǁŝůůďĞĂĚĚƌĞƐƐĞĚŝŶŝƚLJͲ KǁŶĞƌŽŶƚƌĂĐƚ͕ĂŶĚĞǀĞůŽƉŵĞŶƚŐƌĞĞŵĞŶƚ͘ KƚŚĞƌƵƐŝŶĞƐƐ͗ _3DJH 3DFNHW3J + 5(48(67)25&281&,/$&7,21 0((7,1*'$7( $*(1'$6(&7,2125,*,1$7,1*'(37 &RXQFLO,QLWLDWHG$FWLRQV&LW\$GPLQLVWUDWLRQ ,7(0'(6&5,37,2135(3$5('%< -RKQ:HOOQHU0HPRULDO7UDLO %UHQW6YHQE\ 3OHDVHVHHDWWDFKHGFRXQFLOLQLWLDWHGIRUP &281&,/$&7,215(48(67(' 5HYLHZUHTXHVWHGDFWLRQDQGGHWHUPLQHDSSURSULDWHPRWLRQLIDQ\ 3DFNHW3J +D KhE/>Ͳ/E/d/dd/KE^&KZD ŽƵŶĐŝůDĞŵďĞƌZĞƋƵĞƐƚŝŶŐĐƚŝŽŶ͗DĂƌŬ,ŝĐŬĞLJ ŽƵŶĐŝůDĞŵďĞƌƐƐƵƉƉŽƌƚŝŶŐƚŚĂƚƚŚĞƌĞƋƵĞƐƚďĞƉůĂĐĞĚŽŶƚŚĞŽƵŶĐŝů͛Ɛ ŐĞŶĚĂ͗ZĂŶĚLJ^ƚĂǀĞƌ ;ŽƵŶĐŝůͲŝŶŝƚŝĂƚĞĚĂĐƚŝŽŶƐŵƵƐƚŚĂǀĞĂƚůĞĂƐƚƚŚĞƐƵƉƉŽƌƚŽĨŽŶĞĐŽƵŶĐŝůŵĞŵďĞƌ͕ŝŶĂĚĚŝƚŝŽŶƚŽƚŚĞŝŶŝƚŝĂƚŽƌ͕ŝŶŽƌĚĞƌ ĨŽƌŝƚƚŽďĞƉůĂĐĞĚŽŶƚŚĞĂŐĞŶĚĂͿ dŝƚůĞ͗:ŽŚŶtĞůůŶĞƌDĞŵŽƌŝĂůdƌĂŝů ƌŝĞĨĞƐĐƌŝƉƚŝŽŶŽĨĐƚŝŽŶ͗ WĞƌƚŚĞĂƚƚĂĐŚĞĚůĞƚƚĞƌĨƌŽŵŽďEŽǁŝĐŬŝ͕/ǁŽƵůĚůŝŬĞƚŚĞŽƵŶĐŝůƚŽƌĞĐŽŵŵĞŶĚƚŽƚŚĞWĂƌŬŽĂƌĚƚŚĂƚ ƚŚĞƌĞĐƌĞĂƚŝŽŶĂůƚƌĂŝůĨƌŽŵtŚĞĞůŽĐŬƌŝǀĞƚŽZdͬd,ϭϰďĞƌĞŶĂŵĞĚƚŚĞ:ŽŚŶtĞůůŶĞƌDĞŵŽƌŝĂůdƌĂŝů͘ :ŽŚŶŚĂĚĂƚŝƌĞůĞƐƐĐŽŵŵŝƚŵĞŶƚƚŽĞdžƉĂŶĚŝŶŐƚŚĞZŽĐŚĞƐƚĞƌdƌĂŝůŶĞƚǁŽƌŬƚŚƌŽƵŐŚLJĞĂƌƐŽĨŚĂƌĚǁŽƌŬŝŶ ŚŝƐƌŽůĞĂƚWƵďůŝĐtŽƌŬƐ͘,ĞǁĂƐǁĞůůŬŶŽǁŶĨŽƌŚŝƐĐŽŵŵŝƚŵĞŶƚƚŽĨŝŶĚĂƉƌŽũĞĐƚĂĐƌŽƐƐƚŚĞĐŝƚLJƚŽ ďĞƚƚĞƌƚŚĞĐŽŵŵƵŶŝƚLJǁŝƚŚŽƵƚƌĞŐĂƌĚƚŽĚĞƉĂƌƚŵĞŶƚĂůŽƌƌĞŐƵůĂƚŽƌLJũƵƌŝƐĚŝĐƚŝŽŶƐ͘:ŽŚŶǁŽƌŬĞĚ ƚŝƌĞůĞƐƐůLJƚŽĞŶƐƵƌĞĐŽŶŶĞĐƚŝǀŝƚLJŽĨůŽĐĂƚŝŽŶƐĂŶĚƐĂĨĞƌŽƵƚĞƐĨŽƌƉĞĚĞƐƚƌŝĂŶƐĂŶĚďŝĐLJĐůŝƐƚƐ͘,ŝƐƋƵĞƐƚƚŽ ƉƌŽǀŝĚĞĂĐĐĞƐƐŝďŝůŝƚLJĨŽƌĂůůǁĂƐǁĞůůĚŽĐƵŵĞŶƚĞĚ͘ ŽƵŶĐŝůZĞƋƵĞƐƚĞĚĐƚŝŽŶ͗ &ŽƌĂůůƚŚĞƐĞƌĞĂƐŽŶƐ͕/ƌĞƋƵĞƐƚƚŚĂƚƚŚĞŝƚLJŽƵŶĐŝůƌĞĐŽŵŵĞŶĚƚŽƚŚĞWĂƌŬ ŽĂƌĚƚŚĂƚƚŚĞƌĞĐƌĞĂƚŝŽŶĂůƚƌĂŝůĨƌŽŵtŚĞĞůŽĐŬƌŝǀĞƚŽZdͬd,ϭϰďĞƌĞŶĂŵĞĚƚŚĞ:ŽŚŶtĞůůŶĞƌ DĞŵŽƌŝĂůdƌĂŝů͘ ĂƚĞZĞĐĞŝǀĞĚďLJŝƚLJĚŵŝŶŝƐƚƌĂƚŝŽŶ͗ ;&ŽƌŵŵƵƐƚďĞƌĞĐĞŝǀĞĚďLJƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨĨŝĐĞďLJŶŽŽŶŽŶƚŚĞtĞĚŶĞƐĚĂLJƉƌŝŽƌƚŽƚŚĞĐŽƵŶĐŝůŵĞĞƚŝŶŐLJŽƵ ǁŝƐŚƚŚĂƚƚŚĞŝƚĞŵďĞďƌŽƵŐŚƚĨŽƌǁĂƌĚͿ ĂƚĞŽĨŝƚLJŽƵŶĐŝůDĞĞƚŝŶŐ͗ϮͬϬϱͬϮϬϭϴ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