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July 2, 2018 Agenda Packet
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ϯ͘dƌĂŶƐŝƚ^ĞƌǀŝĐĞ/ŶǀĞƐƚŵĞŶƚ^ƚƌĂƚĞŐLJ͗^ƚƌĂƚĞŐŝĐĞŶŚĂŶĐĞŵĞŶƚŽĨƚƌĂŶƐŝƚƐĞƌǀŝĐĞƐƚŽ ƐƵƉƉůĞŵĞŶƚůŽĐĂůĐŽŵŵƵŶŝƚLJĨŝdžĞĚƌŽƵƚĞƚƌĂŶƐŝƚƚŽĂƚƚƌĂĐƚĐŽŵŵƵƚĞƌƐĂƐǁĞůůĂƐ ĂĚĚŝƚŝŽŶĂůĚĂŝůLJŶŽŶͲǁŽƌŬƌŝĚĞƌƐƚŽƚƌĂŶƐŝƚƐĞƌǀŝĐĞƐ͘^ƚƌĂƚĞŐŝĞƐŝŶĐůƵĚĞ͗ ŽǁŶƚŽǁŶƵƐZĂƉŝĚdƌĂŶƐŝƚŝƌĐƵůĂƚŽƌ͗ Ă͘ƌĞĂƚĞĂƌƵďďĞƌƚŝƌĞĚƚƌĂŶƐŝƚĐŝƌĐƵůĂƚŽƌ ǁŝƚŚŝŶƚŚĞDŝƐƚƌŝĐƚŝŶĐŽƌƉŽƌĂƚŝŶŐƚŚĞĨĞĂƚƵƌĞƐŽĨƵƐZĂƉŝĚdƌĂŶƐŝƚƐĞƌǀŝĐĞ ǁŝƚŚĨůĞdžŝďŝůŝƚLJƚŽƉƌŽǀŝĚĞĨŽƌƉŚĂƐŝŶŐŝŶŽĨƐĞƌǀŝĐĞ͕ĂĚĂƉƚĂƚŝŽŶŽĨĂůŝŐŶŵĞŶƚƐƚŽ ĐŚĂŶŐĞƐŝŶĐŽŵŵƵƚĞƌƉĂƌŬŝŶŐůŽĐĂƚŝŽŶƐ͕ĂŶĚƚŚĞƉŽƚĞŶƚŝĂůŝŶƚĞŐƌĂƚŝŽŶŽĨ ĂƵƚŽŶŽŵŽƵƐƚƌĂŶƐŝƚƚĞĐŚŶŽůŽŐLJ͘dŚĞĐŝƌĐƵůĂƚŽƌǁŝůůƚĂƌŐĞƚƐĞƌǀŝĐĞƚŽĐŽŵŵƵƚĞƌƐ 3DFNHW3J )D ƵƐŝŶŐDŽďŝůŝƚLJ,ƵďƉĂƌŬŝŶŐĂƌĞĂƐ͕DĂLJŽůŝŶŝĐŝŶƚĞƌͲĐĂŵƉƵƐƚƌĂĨĨŝĐ͕ĂŶĚŐĞŶĞƌĂů ŝŶƚĞƌŶĂůĐŝƌĐƵůĂƚŝŽŶŶĞĞĚƐŽĨĂůůŝŶĚŝǀŝĚƵĂůƐǁŝƚŚŝŶƚŚĞDŝƐƚƌŝĐƚ ĐĐŽŵŵŽĚĂƚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞĐŝƚLJǁŝĚĞWƌŝŵĂƌLJdƌĂŶƐŝƚEĞƚǁŽƌŬ ď͘ƐƚƌĂƚĞŐLJ ŶĚ ĚĞĨŝŶĞĚŝŶƚŚĞŝƚLJŽŵƉƌĞŚĞŶƐŝǀĞWůĂŶŽŶƚŚĞƌŽĂĚǁĂLJǀĞĂŶĚϮ^ƚ^ŽƵƚŚ ƚƌĂǀĞůĐŽƌƌŝĚŽƌƐŝŶƚŚĞŝƐƚƌŝĐƚ͘dŚĞWdEŝƐĂŶŝŶƚĞŐƌĂƚĞĚůĂŶĚƵƐĞĂŶĚƚƌĂŶƐŝƚ ƐƚƌĂƚĞŐLJƚŽƉƌŽǀŝĚĞŚŝŐŚƋƵĂůŝƚLJ͕ĨƌĞƋƵĞŶƚZdƐƚLJůĞƐĞƌǀŝĐĞĐŽŶŶĞĐƚŝŶŐƚŚĞD ŝƐƚƌŝĐƚǁŝƚŚŽƚŚĞƌŵĂũŽƌĚĞƐƚŝŶĂƚŝŽŶŽƌĂĐƚŝǀŝƚLJĐĞŶƚĞƌƐƚŚƌŽƵŐŚŽƵƚƚŚĞĐŝƚLJĂŶĚ ƚŽĂƚƚƌĂĐƚŚŽƵƐŝŶŐĂŶĚďƵƐŝŶĞƐƐĚĞǀĞůŽƉŵĞŶƚƚŽƐŝƚĞƐĂůŽŶŐƚŚĞWdEƚŚĂƚǁŝůů ĂǀĂŝůĚŽǁŶƚŽǁŶǁŽƌŬĞƌƐĂŶĚŽƚŚĞƌƐŽĨŐƌĞĂƚĞƌĐŚŽŝĐĞŝŶŚŽƵƐŝŶŐƐĞƌǀĞĚďLJ ĐŽŶǀĞŶŝĞŶƚƚƌĂŶƐŝƚƐĞƌǀŝĐĞ džƉĂŶĚĞdžƉƌĞƐƐƚƌĂŶƐŝƚƐĞƌǀŝĐĞƚŽƌĞŵŽƚĞƉĂƌŬĂŶĚƌŝĚĞůŽƚƐ Đ͘ƚŽĂĐĐŽŵŵŽĚĂƚĞ ƚŚĞŝŶĐƌĞĂƐĞĚƉĂƌŬŝŶŐĐĂƉĂĐŝƚLJƚŽďĞĚĞǀĞůŽƉĞĚĂƚƌĞŵŽƚĞƐŝƚĞƐ͘ ŝĚĞŶƚŝĨLJĨĞĂƐŝďůĞĂůƚĞƌŶĂƚŝǀĞůŽĐĂƚŝŽŶƐ Ě͘tŽƌŬǁŝƚŚƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐĂŶĚDĂLJŽƚŽ ƚŽƐƚŽƌĞĂŶĚƉƌŽǀŝĚĞĞŶĚͲŽĨͲĚĂLJďŽĂƌĚŝŶŐĨŽƌƌĞŐŝŽŶĂůĐŽŵŵƵƚĞƌďƵƐĞƐ ƚŚĂƚ ĞdžƉĞĐƚƚŽƐĞĞŝŶĐƌĞĂƐĞĚƌŝĚĞƌƐŚŝƉ͕ǁŚŝĐŚĂƌĞŶŽǁĂĐĐŽŵŵŽĚĂƚĞĚŽŶͲƐƚƌĞĞƚŝŶƚŚĞ ĐŽƌĞĂƌĞĂŽĨƚŚĞ,ĞĂƌƚŽĨƚŚĞŝƚLJŝƐƚƌŝĐƚ͘ Ğ͘dŚĞ/d^^ƚƵĚŝĞƐŝĚĞŶƚŝĨŝĞĚƉƌĞůŝŵŝŶĂƌLJĚĞƐŝŐŶĐŽŶĐĞƉƚƐĨŽƌŬĞLJdƌĂŶƐŝƚDŽďŝůŝƚLJ ƉŽƚĞŶƚŝĂů ^ƚƌĞĞƚƐŝŶĐůƵĚŝŶŐϮ ŶĚ^ƚ^tĂŶĚϯ ƌĚĂŶĚϰ ƚŚǀĞtĞƐƚƚŚĂƚƌĞĨůĞĐƚƚŚĞ ĨƵƚƵƌĞŶĞĞĚĨŽƌĚĞĚŝĐĂƚĞĚƚƌĂŶƐŝƚůĂŶĞƐŽƌƐŚĂƌĞĚůĂŶĞƐƉƌŝŽƌŝƚŝnjĞĚĨŽƌƚƌĂŶƐŝƚ ŝŶ ŽƌĚĞƌƚŽŵĞĞƚƚŚĞĚĞŵĂŶĚĨŽƌƚƌĂŶƐŝƚƐĞƌǀŝĐĞƚŚĂƚŝƐƉƌŽũĞĐƚĞĚŝŶƚŚĞĚŝƐƚƌŝĐƚ͘ ϰ͘^ƚƌĞĞƚ/ŶǀĞƐƚŵĞŶƚ^ƚƌĂƚĞŐLJ͗ƐŽƉƉŽƌƚƵŶŝƚŝĞƐŽƌŶĞĞĚƐĂƌŝƐĞƚŽƌĞďƵŝůĚŽƌƵƉŐƌĂĚĞƐƚƌĞĞƚ ĨĂĐŝůŝƚŝĞƐ͕ƉůĂŶĨŽƌŝŵƉƌŽǀĞŵĞŶƚƐƌĞĐŽŐŶŝnjŝŶŐƚŚĂƚĐĞƌƚĂŝŶƐƚƌĞĞƚƐƐĞƌǀŝĐĞĚŝĨĨĞƌĞŶƚ ƉƌŝŵĂƌLJĨƵŶĐƚŝŽŶƐĂŶĚƚŚĞĐŚĂƌĂĐƚĞƌŽĨƚŚĞƐƚƌĞĞƚŝƐŝŶĨůƵĞŶĐĞĚďLJĂŶĚŝŶƚƵƌŶŝŶĨůƵĞŶĐĞƐ ƚŚĞůĂŶĚƵƐĞĐŚĂƌĂĐƚĞƌŽĨƚŚĞĐŽƌƌŝĚŽƌ͘dŚĞ^ƚƌĞĞƚ/ŶǀĞƐƚŵĞŶƚ^ƚƌĂƚĞŐLJŝƐďƵŝůƚĂƌŽƵŶĚ ƚŚĞƌĞĐŽŐŶŝƚŝŽŶŽĨƚŚĞĨŽůůŽǁŝŶŐƐƚƌĞĞƚƚLJƉĞƐ͗ Ă͘DŽďŝůŝƚLJ^ƚƌĞĞƚƐ͗ĐĐŽŵŵŽĚĂƚĞŚŝŐŚǀŽůƵŵĞƐŽĨƚƌĂĨĨŝĐǁŚŝůĞƉƌŽǀŝĚŝŶŐďĂƐŝĐ ĨĂĐŝůŝƚŝĞƐĨŽƌŽƚŚĞƌŵŽĚĞƐ ď͘dƌĂŶƐŝƚWƌŝŽƌŝƚLJ^ƚƌĞĞƚƐ͗ĞƐŝŐŶĨĞĂƚƵƌĞƐĂŶĚŽƉĞƌĂƚŝŽŶĂůƉƌŝŽƌŝƚŝĞƐĂƌĞƚƌĂŶƐŝƚ ŽƌŝĞŶƚĞĚ Đ͘DƵůƚŝͲŵŽĚĂů^ƚƌĞĞƚƐ͗^ƚƌŝǀĞƚŽĂĐĐŽŵŵŽĚĂƚĞĂǀĂƌŝĞƚLJŽĨŵŽĚĞƐŝŶĂďĂůĂŶĐĞĚ ŵĂŶŶĞƌ Ě͘͞DĂŝŶ^ƚƌĞĞƚƐ͗͟^ƚƌĞĞƚƐƉƌŽŵŽƚĞƌĞƚĂŝůĂĐƚŝǀŝƚLJĂŶĚƉĞĚĞƐƚƌŝĂŶŵŽǀĞŵĞŶƚ ƉƌŝŽƌŝƚLJ Ğ͘WĞĚĞƐƚƌŝĂŶKƌŝĞŶƚĞĚͬ^ŚĂƌĞĚ^ƚƌĞĞƚƐ͗^ƚƌĞĞƚƐĂƌĞĚĞƐŝŐŶĞĚƚŽƉƌŽǀŝĚĞĨŽƌĨůĞdžŝďůĞ ƵƐĂŐĞǁŝƚŚĂƐƚƌŽŶŐŽƌŝĞŶƚĂƚŝŽŶƚŽƉĞĚĞƐƚƌŝĂŶĂŶĚďŝĐLJĐůĞƵƐĂŐĞ Ĩ͘EĞŝŐŚďŽƌŚŽŽĚ^ƚƌĞĞƚƐ͗ĞƐŝŐŶĞĚĨŽƌůŽǁǀŽůƵŵĞƐŽĨƐůŽǁŵŽǀŝŶŐƚƌĂĨĨŝĐ dŚĞƐĞƉƌŝŶĐŝƉůĞƐĂƌĞĨƵƌƚŚĞƌĂƌƚŝĐƵůĂƚĞĚŝŶƚŚĞĂĚŽƉƚĞĚŽǁŶƚŽǁŶĞƐŝŐŶDĂŶƵĂůĂŶĚ ƚŚĞƐĞƌĞƐŽƵƌĐĞƐƐŚŽƵůĚďĞĐŽŶƐƵůƚĞĚǁŚĞŶĚĞƐŝŐŶŝŶŐƐƚƌĞĞƚŝŵƉƌŽǀĞŵĞŶƚƐ͘ 3DFNHW3J )D ϱ͘ĐƚŝǀĞdƌĂŶƐƉŽƌƚĂƚŝŽŶ/ŶǀĞƐƚŵĞŶƚ^ƚƌĂƚĞŐLJ͗dŚĞDĞǀĞůŽƉŵĞŶƚWůĂŶĞŶĐŽƵƌĂŐĞĚ ŵŽƌĞĂĐƚŝǀĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶŽƉƚŝŽŶƐƚŚƌŽƵŐŚŝŵƉƌŽǀĞŵĞŶƚƚŽƚŚĞƋƵĂůŝƚLJŽĨƚŚĞ ĚŽǁŶƚŽǁŶĞŶǀŝƌŽŶŵĞŶƚĂƐǁĞůůĂƐŝŶǀĞƐƚŵĞŶƚŝŶƉĞĚĞƐƚƌŝĂŶĂŶĚďŝĐLJĐůĞĨĂĐŝůŝƚŝĞƐ͘ dŚĞ/d^^ƚƵĚŝĞƐĨƵƌƚŚĞƌƌĞĨŝŶĞĚƚŚĞĐŽŶĐĞƉƚƐŽĨƚŚĞDĞǀĞůŽƉŵĞŶƚWůĂŶŝŶƌĞŐĂƌĚƐƚŽ ƚŚĞƉƌŽƉŽƐĞĚŝƚLJ>ŽŽƉ͕ŝĚĞŶƚŝĨLJŝŶŐĂƌĞĐŽŵŵĞŶĚĞĚĂůŝŐŶŵĞŶƚĂŶĚĚĞǀĞůŽƉŝŶŐĂ ƉƌŽƉŽƐĞĚĚĞƐŝŐŶƉĂůĞƚƚĞĂŶĚĚĞƐŝŐŶǀŽĐĂďƵůĂƌLJĨŽƌƚŚĞĨĂĐŝůŝƚLJ͘dŚĞ/d^^ƚƵĚŝĞƐĂůƐŽ ƌĞĨŝŶĞĚƚŚĞƉůĂŶĨŽƌĂĚŽǁŶƚŽǁŶďŝŬĞǁĂLJŶĞƚǁŽƌŬƚŚĂƚŚĂĚďĞĞŶƉƌĞǀŝŽƵƐůLJĚĞĨŝŶĞĚ ƚŚƌŽƵŐŚƚŚĞŽǁŶƚŽǁŶDĂƐƚĞƌWůĂŶĂŶĚŝƚLJŝŬĞDĂƐƚĞƌWůĂŶ͘dŚĞŐŽĂůŽĨƚŚŝƐǁŽƌŬŝƐ ƚŽŝĚĞŶƚŝĨLJďŝŬĞĐŽŶŶĞĐƚŝŽŶƐƚŽŵĂũŽƌĚŽǁŶƚŽǁŶĚĞƐƚŝŶĂƚŝŽŶƐĂƐǁĞůůĂƐĞƐƚĂďůŝƐŚŝŶŐ ŐƵŝĚĂŶĐĞĨŽƌƌŽƵƚĞƐƚŚĂƚǁŝůůƉƌŽǀŝĚĞĨŽƌĚŝƌĞĐƚƚƌĂǀĞůĂĐƌŽƐƐĚŽǁŶƚŽǁŶ͘ ^d&&Z KDD Ed/KE dŚĞD ƐƚĂĨĨĂŶĚŝƚLJƐƚĂĨĨǁŽƵůĚƌĞĐŽŵŵĞŶĚƚŚĞDŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚ ZŽĐŚĞƐƚĞƌŝƚLJŽƵŶĐŝůĂĐĐĞƉƚƚŚĞĨŝŶĚŝŶŐƐĂŶĚĐŽŶĐůƵƐŝŽŶƐĂƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞ džĞĐƵƚŝǀĞ ^ƵŵŵĂƌLJĂŶĚĨŽƵƌĨŝŶĂůƐƚƵĚLJƌĞƉŽƌƚƐ͕ĚĂƚĞĚ:ƵŶĞϮϬ͕ϮϬϭϴ͕ĂƐĂŶƵƉĚĂƚĞĚĂŶĚƌĞĨŝŶĞĚ 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ƚŚĞDŽďŝůŝƚLJ,ƵďĂƌĞĂƐĂƌĞƐƵďũĞĐƚƚŽĨƵƌƚŚĞƌƌĞǀŝĞǁĂŶĚƌĞĨŝŶĞŵĞŶƚĂƐŶĞĐĞƐƐĂƌLJƚŽ ĂůůŽǁĨŽƌƚŚĞĨƵƌƚŚĞƌĐŽŶƐŝĚĞƌĂƚŝŽŶŽĨũŽŝŶƚƉƵďůŝĐʹƉƌŝǀĂƚĞĚĞǀĞůŽƉŵĞŶƚŽƉƉŽƌƚƵŶŝƚŝĞƐ ƚŚĂƚǁŝůůĂĐŚŝĞǀĞƚŚĞůĂŶĚƵƐĞĂŶĚĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚŐŽĂůƐŽĨƚŚĞĞǀĞůŽƉŵĞŶƚ WůĂŶĂŶĚƚĂŬĞĂĚǀĂŶƚĂŐĞŽĨĨŝŶĂŶĐŝŶŐĂƉƉƌŽĂĐŚĞƐƚŚĂƚĐĂŶĂƚƚƌĂĐƚƉƌŝǀĂƚĞĚŽůůĂƌƐƚŽƚŚĞ ƉƌŽǀŝƐŝŽŶŽĨƉƵďůŝĐŝŶĨƌĂƐƚƌƵĐƚƵƌĞŝŶƚŚĞƐĞĂƌĞĂƐ͕ǁŚŝůĞŵĞĞƚŝŶŐŵĂƌŬĞƚĚƌŝǀĞŶďƵƐŝŶĞƐƐ ĚĞǀĞůŽƉŵĞŶƚŶĞĞĚƐĂŶĚƚŚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶĂĐĐĞƐƐĂŶĚŵŽďŝůŝƚLJŶĞĞĚƐŝŶƚŚĞŝƐƚƌŝĐƚ͘ ďͿZŽƵƚĞƐĨŽƌZdĐŝƌĐƵůĂƚŽƌǁŝůůďĞĨƵƌƚŚĞƌĞǀĂůƵĂƚĞĚƚŽďĞƐƚƌĞĨůĞĐƚĨŝŶĂůůŽĐĂƚŝŽŶŽĨƚŚĞ DŽďŝůŝƚLJ,ƵďƐ͕ŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚ͕ŽƉĞƌĂƚŝŽŶĂůĞĨĨŝĐŝĞŶĐŝĞƐ͕ĂŶĚ ŽƚŚĞƌĐŽŶƐŝĚĞƌĂƚŝŽŶƐ͘ 3DFNHW3J )D ĐͿZĞƉƌĞƐĞŶƚĂƚŝŽŶƐŝŶƚŚĞ/d^&ŝŶĂůZĞƉŽƌƚŽĨƐƉĞĐŝĨŝĐƉŚĂƐŝŶŐŽĨ/d^ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂƌĞ ŝůůƵƐƚƌĂƚŝǀĞĂŶĚĂƌĞƐƵďũĞĐƚƚŽĐŚĂŶŐĞƵƉŽŶƚŚĞĚĞǀĞůŽƉŵĞŶƚĂŶĚŽŶŐŽŝŶŐƌĞĨŝŶĞŵĞŶƚ͕ ƌĞǀŝĞǁ͕ĂŶĚĂĚŽƉƚŝŽŶŽĨĂŶ/d^/ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶ͘dŚĞ/ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶǁŝůů ŝŶĐůƵĚĞƐƚƌĂƚĞŐŝĞƐĨŽƌŵŽŶŝƚŽƌŝŶŐĐŚĂŶŐĞŝŶƚƌĂǀĞů͕ĞĐŽŶŽŵŝĐĂĐƚŝǀŝƚLJĂŶĚůĂŶĚƵƐĞŝŶƚŚĞ ŝƐƚƌŝĐƚƚŽŝŶĨŽƌŵƚŚĞŶĞĞĚƚŽŝŶŝƚŝĂƚĞĂĐƚŝŽŶŽŶĐƌŝƚŝĐĂůĞůĞŵĞŶƚƐŽĨƚŚĞ/d^^ƚƵĚŝĞƐ 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&ŽůůŽǁŝŶŐĂĐĐĞƉƚĂŶĐĞŽĨƚŚŝƐƌĞƉŽƌƚ͕D ĂŶĚŝƚLJƐƚĂĨĨǁŝůůƉƌĞƉĂƌĞĂƉŚĂƐĞĚ /ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶĨŽƌŽĂƌĚͬŽƵŶĐŝůĐŽŶƐŝĚĞƌĂƚŝŽŶ;^ĞƉƚĞŵďĞƌϮϬϭϴͿĂŶĚƌĞƋƵĞƐƚĨŽƌϮϬϭϵ ďƵĚŐĞƚĂĐƚŝŽŶ;EŽǀĞŵďĞƌϮϬϭϴͿ͘ dŚĞ/d^&ŝŶĂůZĞƉŽƌƚƐƉƌŽǀŝĚĞƚŚĞďĂƐŝƐĨŽƌƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚŝƐƉůĂŶǁŚŝĐŚǁŝůůƐĞƌǀĞĂƐĂ ďůƵĞƉƌŝŶƚĨŽƌĚĞůŝǀĞƌŝŶŐĨƵƚƵƌĞWƵďůŝĐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞWƌŽũĞĐƚƐŝŶƐƵƉƉŽƌƚŽĨƚŚĞDĞĐŽŶŽŵŝĐ ĚĞǀĞůŽƉŵĞŶƚƉƌŽŐƌĂŵĂŶĚƚŚĞůŝǀĂďŝůŝƚLJĂŶĚƐƵƐƚĂŝŶĂďŝůŝƚLJŐŽĂůƐŽĨƚŚĞWůĂŶ͘dŚĞ /ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶǁŝůůďĞĂůŝǀŝŶŐĚŽĐƵŵĞŶƚƚŽŐƵŝĚĞĨƵƚƵƌĞĚĞĐŝƐŝŽŶƐƌĞŐĂƌĚŝŶŐƉƌŽũĞĐƚ ƉƌŽŐƌĂŵŵŝŶŐĂŶĚĚĞǀĞůŽƉŵĞŶƚ͕ǁŚŝĐŚƐŚŽƵůĚďĞƌĞǀŝĞǁĞĚĂŶŶƵĂůůLJĂŶĚƵƉĚĂƚĞĚĂƐŶĞĞĚĞĚ͘/ ĐŽŵďŝŶĂƚŝŽŶǁŝƚŚƚŚĞŵŽŶŝƚŽƌŝŶŐŽĨĐŚĂŶŐŝŶŐĐŽŶĚŝƚŝŽŶƐĚĞƐĐƌŝďĞĚŝŶŝƚĞŵ;ĐͿĂďŽǀĞ͕ƚŚĞ /ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶǁŝůůďĞĂŶŝŵƉŽƌƚĂŶƚƚŽŽůĨŽƌŝĚĞŶƚŝĨLJŝŶŐǁŚĞŶĂĐƚŝŽŶƐŶĞĞĚƚŽďĞŐŝŶƚŽ ĂĚǀĂŶĐĞŽĨǀĂƌŝŽƵƐĞůĞŵĞŶƚƐŽĨƚŚĞŽǀĞƌĂůůD/ŶĨƌĂƐƚƌƵĐƚƵƌĞƉƌŽŐƌĂŵ͘ dŚĞĞdžĞĐƵƚŝǀĞƐƵŵŵĂƌLJĂŶĚĨƵůůƐƚƵĚLJƌĞƉŽƌƚƐŽĨƚŚĞ/ŶƚĞŐƌĂƚĞĚdƌĂŶƐŝƚ^ƚƵĚŝĞƐĐĂŶďĞĨŽƵŶĚ ŚĞƌĞ͘ 3DFNHW3J )E ϭ WĂŐĞͮ Z ^K>hd/KE ZĞƐŽůƵƚŝŽŶĂĐĐĞƉƚŝŶŐƚŚĞĨŝŶĚŝŶŐƐĂŶĚĐŽŶĐůƵƐŝŽŶƐŽĨƚŚĞDdƌĂŶƐƉŽƌƚĂƚŝŽŶΘ/ŶĨƌĂƐƚƌƵĐƚƵƌĞ WƌŽŐƌĂŵ/ŶƚĞŐƌĂƚĞĚdƌĂŶƐŝƚ^ƚƵĚŝĞƐ͕ƚŚĂƚƉƌŽǀŝĚĞĂƉůĂŶŶŝŶŐĨƌĂŵĞǁŽƌŬĨŽƌƚŚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ƉƌŽũĞĐƚƐĂŶĚƉƌŽŐƌĂŵƐŶĞĞĚĞĚƚŽƐƵƉƉŽƌƚƚŚĞĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚĞĨĨŽƌƚƐŽĨƚŚĞĞƐƚŝŶĂƚŝŽŶ DĞĚŝĐĂůĞŶƚĞƌŽƌƉŽƌĂƚŝŽŶ;͞D͟ͿĂŶĚŝƚLJŽĨZŽĐŚĞƐƚĞƌ;͞ŝƚLJͿƚŽǁĂƌĚƐĐƌĞĂƚŝŽŶŽĨĂ ĞƐƚŝŶĂƚŝŽŶDĞĚŝĐĂůĞŶƚĞƌ͘ ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ t, Z ^͕DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞϰϲϵ͘ϰϬƉƌŽǀŝĚĞĚĨŽƌƚŚĞĞƐƚĂďůŝƐŚŵĞŶƚŽĨĂĞƐƚŝŶĂƚŝŽŶDĞĚŝĐĂů ĞŶƚĞƌĞǀĞůŽƉŵĞŶƚŝƐƚƌŝĐƚ;͞ŝƐƚƌŝĐƚ͟ͿĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĨĂĐŝůŝƚĂƚŝŶŐĚĞǀĞůŽƉŵĞŶƚŽĨƉƵďůŝĐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞƉƌŽũĞĐƚƐƚŚĂƚƐƵƉƉŽƌƚƚŚĞƐƚĂƚĞĂŶĚůŽĐĂůŽďũĞĐƚŝǀĞŽĨĐƌĞĂƚŝŶŐĂĚĞƐƚŝŶĂƚŝŽŶ ŵĞĚŝĐĂůĐĞŶƚĞƌ͖ĂŶĚ t, Z ^͕ƉƵƌƐƵĂŶƚƚŽƐƚĂƚƵƚĞ͕ƚŚĞĞƐƚŝŶĂƚŝŽŶDĞĚŝĐĂůĞŶƚĞƌŽƌƉŽƌĂƚŝŽŶĂĚŽƉƚĞĚĂD ĞǀĞůŽƉŵĞŶƚWůĂŶ;͞WůĂŶ͟ͿŽŶƉƌŝůϮϯ͕ϮϬϭϱĂŶĚƚŚĞZŽĐŚĞƐƚĞƌŽŵŵŽŶŽƵŶĐŝůĂĚŽƉƚĞĚƚŚĞ WůĂŶŽŶDĂƌĐŚϮϯ͕ϮϬϭϱ͖ĂŶĚ t, Z ^͕ĂĐƚŝŽŶďLJƚŚĞZŽĐŚĞƐƚĞƌŽŵŵŽŶŽƵŶĐŝůŝŶŝƚLJZĞƐŽůƵƚŝŽŶηϭϯϯͲϭϱĂĚŽƉƚŝŶŐƚŚĞ DWůĂŶƌĞĐŽŐŶŝnjĞĚƚŚĞŶĞĞĚƚŽĐŽŵƉůĞƚĞĨƵƌƚŚĞƌƐƚƵĚLJĂŶĚƌĞĨŝŶĞŵĞŶƚŽĨƚŚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ƐƚƌĂƚĞŐŝĞƐĂŶĚĂĐƚŝŽŶƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞWůĂŶŝŶŽƌĚĞƌƚŽƉƌŽǀŝĚĞĂŶŝŶͲĚĞƉƚŚĂƐƐĞƐƐŵĞŶƚŽĨ ŽƉƚŝŽŶƐĂŶĚĨƵůůLJĞǀĂůƵĂƚĞƚŚĞĚĞƚĂŝůƐŽĨƚŚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶƐŽůƵƚŝŽŶƐƉƌŽƉŽƐĞĚŝŶƚŚĞWůĂŶƚŽ ŝŶƐƵƌĞƉƌŽũĞĐƚƐďĞƐƚƐĞƌǀĞƚŚĞŶĞĞĚƐŽĨƚŚĞŝƚLJĂŶĚƚŚĞŝƐƚƌŝĐƚĂŶĚĂƌĞƚŚĞŵŽƐƚĐŽƐƚĞĨĨĞĐƚŝǀĞ ƐŽůƵƚŝŽŶƐ͖ĂŶĚ t, Z ^͕ŝŶĨƵƌƚŚĞƌĂŶĐĞŽĨƚŚĞŐŽĂůƐŽĨƚŚĞDĞǀĞůŽƉŵĞŶƚWůĂŶ͕ƚŚĞZŽĐŚĞƐƚĞƌŽŵŵŽŶ ŽƵŶĐŝůĂƵƚŚŽƌŝnjĞĚĨƵŶĚŝŶŐĨŽƌƚŚĞĞƐƚŝŶĂƚŝŽŶDĞĚŝĐĂůĞŶƚĞƌ/ŶƚĞŐƌĂƚĞĚdƌĂŶƐŝƚ^ƚƵĚŝĞƐ ;͞dƌĂŶƐŝƚ^ƚƵĚŝĞƐ͟ͿĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨƉƌŽǀŝĚŝŶŐĂƌŝŐŽƌŽƵƐĂƐƐĞƐƐŵĞŶƚŽĨĂůƚĞƌŶĂƚŝǀĞƐĨŽƌ ǀĞŚŝĐƵůĂƌ͕ƚƌĂŶƐŝƚ͕ƉĞĚĞƐƚƌŝĂŶ͕ĂŶĚďŝĐLJĐůĞƚƌĂǀĞůĂƚĂůĞǀĞůŽĨĚĞƚĂŝůŶĞĞĚĞĚƚŽŐĞŶĞƌĂƚĞ ĐŽŶĨŝĚĞŶĐĞŝŶƚŚĞƐƚƵĚLJ͛ƐĨŝŶĚŝŶŐƐ͕ĐŽŶĐůƵƐŝŽŶƐ͕ĂŶĚƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂŶĚƐƵƉƉŽƌƚĨŽƌƚŚĞ ĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚ͕ƐƵƐƚĂŝŶĂďŝůŝƚLJĂŶĚĐŽŵŵƵŶŝƚLJůŝǀĂďŝůŝƚLJŐŽĂůƐŽĨƚŚĞDĞǀĞůŽƉŵĞŶƚ WůĂŶ͖ĂŶĚ 3DFNHW3J )E Ϯ WĂŐĞͮ t, Z ^͕dŚĞdƌĂŶƐŝƚ^ƚƵĚŝĞƐĨŽĐƵƐĞĚŽŶƚŚĞĨŽůůŽǁŝŶŐĨŽƵƌĂƌĞĂƐ͗;ϭͿŽǁŶƚŽǁŶdƌĂŶƐŝƚ ŝƌĐƵůĂƚŽƌ͖;ϮͿŝƚLJ>ŽŽƉ͖;ϯͿWĂƌŬŝŶŐĂŶĚdƌĂǀĞůĞŵĂŶĚDĂŶĂŐĞŵĞŶƚ͖ĂŶĚ;ϰͿ^ƚƌĞĞƚhƐĞĂŶĚ KƉĞƌĂƚŝŽŶƐ͘dŚĞŝƚLJŽƵŶĐŝůƌĞĐĞŝǀĞĚƌĞŐƵůĂƌƵƉĚĂƚĞƐĂƐƚŽƚŚĞƉƌŽŐƌĞƐƐĂŶĚƉůĂŶŶŝŶŐ 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