Loading...
HomeMy WebLinkAboutFebruary 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$)7   6WDQGLQJ&RPPLWWHHV ±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±9ROXQWDU\QRWDSSRLQWHGE\WKH&RXQFLOIXOOYRWLQJSULYLOHJHV  %RDUG&RPPLVVLRQ$SSRLQWPHQW5HDVRQ&XUUHQW5HSUHVHQWDWLYH 5HSUHVHQWDWLYH 5RFKHVWHU$UWV&HQWHU%RDUG)DFLOLW\ )XQGLQJ$QQDOLVVD-RKQVRQ  6HQLRU&HQWHU$GYLVRU\%RDUG)DFLOLW\0LFKDHO:RMFLN  5RFKHVWHU'RZQWRZQ$OOLDQFH)XQGLQJ(G+UXVND  5RFKHVWHU&RQYHQWLRQ 9LVLWRUV%XUHDX)DFLOLW\ )XQGLQJ5DQG\6WDYHU5DQG\6WDYHU 5&9%   5RFKHVWHU&LYLF7KHDWHU)DFLOLW\ )XQGLQJ$QQDOLVVD-RKQVRQ   7KHDGRSWHG5HVROXWLRQDOVRSURYLGHVIRUSDUWLFLSDWLRQZKHUHWKHRUJDQL]DWLRQRSHUDWHVLQD&LW\RZQHGIDFLOLW\ EXLOGLQJ  DQGRUUHFHLYHVVLJQLILFDQWSXEOLFIXQGV6LJQLILFDQWSXEOLFIXQGVLVGHILQHGDVHLWKHUDPLQLPXPRIRIWKHHQWLW\¶V DQQXDORSHUDWLQJEXGJHWRULVQRWOHVVWKDQ   9ROXQWDU\&RPPLWWHHV ±9ROXQWDU\QRWDSSRLQWHGE\WKH&RXQFLOPD\QRWSDUWLFLSDWHLQYRWLQJ  %RDUG&RPPLVVLRQ$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\´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³$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)$6(0(17*5((0(17 7HUPLQDWLRQ'DWH DVKHUHLQDIWHUGHILQHG E\DQGEHWZHHQ8UEDQRQ)LUVW//&D0LQQHVRWDOLPLWHG OLDELOLW\FRPSDQ\ ³*UDQWRU´ DQGWKH&LW\RI5RFKHVWHUD0LQQHVRWD0XQLFLSDO&RUSRUDWLRQ ³*UDQWHH´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³7ZR+RXU3DUNLQJ´]RQHRQ WK WKHQRUWKVLGHRI(DVW&HQWHU6WUHHWIURPWKHLQWHUVHFWLRQRI$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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³$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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