Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
September 23, 2024 Agenda Packet
! " ! " / $() . %! $'! "1 "2 *3 $ 3%!/ + :/ 6)!A B " ˅ˢ˖˛˘˦˧˘˥ ˜˦˔ʶ˜˧ˬ˧˛˔˧˖˔˥˘˦ʡˊ˛˘˥˘˔˟˟ˣ˘ˢˣ˟˘˔˥˘˧˥˘˔˧˘˗˪˜˧˛˗˜˚ˡ˜˧ˬ˔ˡ˗˥˘˦ˣ˘˖˧ʡ ˊ˛˘˥˘˥˘˦˜˗˘ˡ˧˦ʟ˘ˠˣ˟ˢˬ˘˘˦ʟ˔ˡ˗˩˜˦˜˧ˢ˥˦˘ˡ˝ˢˬ˔˛˜˚˛ˤ˨˔˟˜˧ˬˢ˙˟˜˙˘ʡˊ˛˘˥˘˕˨˦˜ˡ˘˦˦ ˔ˡ˗˜ˡ˗˨˦˧˥ˬ˧˛˥˜˩˘ʟ˔ˡ˗˪˛˘˥˘˧˛˘˟˔ˡ˗˔ˡ˗˘ˡ˩˜˥ˢˡˠ˘ˡ˧˔˥˘˥˘ˡ˘˪˘˗˔ˡ˗˦˨˦˧˔˜ˡ˘˗ ˙ˢ˥˧˛˘˕˘ˡ˘Ѓ˧ˢ˙˔˟˟ʡʼ˧˜˦˔˪˘˟˖ˢˠ˜ˡ˚˔ˡ˗˗˜˩˘˥˦˘˖ˢˠˠ˨ˡ˜˧ˬʡ ˅˘ˡˢ˪ˡ˘˗ ˙ˢ˥˜˧˦˥˘ˣ˨˧˔˧˜ˢˡ˔˦˔˖˘ˡ˧˘˥˙ˢ˥˚˥ˢ˪˧˛˔ˡ˗˜ˡˡˢ˩˔˧˜ˢˡʡ ʶ˜˧ˬ ʶ˛˔˥˔˖˧˘˥˜˭˘˗ ˕ˬ˜˧˦˦˔˙˘˔ˡ˗˙˥˜˘ˡ˗˟ˬˡ˘˜˚˛˕ˢ˥˛ˢˢ˗˦ʡ ˉ˜˦˜ˢˡ ʶˢˠˠ˜˧˧˘˗ ˧ˢ˛˘˔˟˧˛˔ˡ˗˪˘˟˟ˡ˘˦˦˙ˢ˥˜˧˦ˣ˘ˢˣ˟˘ʡ ʶˢˡˡ˘˖˧˘˗ ˕ˢ˧˛ˣ˛ˬ˦˜˖˔˟˟ˬ˔ˡ˗˦ˢ˖˜˔˟˟ˬʡ ʷ˘˗˜˖˔˧˘˗ ˧ˢ˧˛˘˦˨˦˧˔˜ˡ˔˕˟˘˔ˡ˗˥˘˦ˣˢˡ˦˜˕˟˘˨˦˘ˢ˙ˣ˨˕˟˜˖˥˘˦ˢ˨˥˖˘˦ʡ ˂˥˚˔ˡ˜˭˔˧˜ˢˡ˔˟ ʴ˩˜˕˥˔ˡ˧ʟ˖ˢˠˣ˔˦˦˜ˢˡ˔˧˘ʟ ˉ˜˦˜ˢˡ ˜ˡˡˢ˩˔˧˜˩˘˧˘˔ˠʡ ʹˢ˨ˡ˗˔˧˜ˢˡ˔˟ ʠʸˡ˩˜˥ˢˡˠ˘ˡ˧˔˟ʠ˃˨˕˟˜˖ˆ˔˙˘˧ˬ ˆ˧˘˪˔˥˗˦˛˜ˣ ˃˥˜ˡ˖˜ˣ˟˘˦ ʠˆˢ˖˜˔˟ʸˤ˨˜˧ˬ ʠʹ˜˦˖˔˟˅˘˦ˣˢˡ˦˜˕˜˟˜˧ˬʙ ʠʶˢˠˣ˔˦˦˜ˢˡ ˆ˨˦˧˔˜ˡ˔˕˜˟˜˧ˬ ˆ˧˥˔˧˘˚˜˖˃˥˜ˢ˥˜˧˜˘˦ ʠʴ˙˙ˢ˥˗˔˕˟˘ʿ˜˩˜ˡ˚ ʠʸ˖ˢˡˢˠ˜˖ˉ˜˕˥˔ˡ˖ˬ˔ˡ˗ʺ˥ˢ˪˧˛ˀ˔ˡ˔˚˘ˠ˘ˡ˧ ʠ˄˨˔˟˜˧ˬˆ˘˥˩˜˖˘˦ ʴ˖˧˜ˢˡ˃˟˔ˡ ʴ˖˧˜ˢˡ˃˟˔ˡ˦˪˜˟˟˕˘˗˘˩˘˟ˢˣ˘˗˧ˢ˜˗˘ˡ˧˜˙ˬ ˚ˢ˔˟˦ʟ˔˖˧˜ˢˡ˦ʟ˔ˡ˗ˣ˘˥˙ˢ˥ˠ˔ˡ˖˘ ˜ˡ˗˜˖˔˧ˢ˥˦˧˛˔˧˛˘˟ˣ˔˗˩˔ˡ˖˘ˣ˥˜ˢ˥˜˧˜˘˦ʡ ˆ˧˥˔˧˘˚˜˖˃˥˜ˢ˥˜˧ˬʭˆ˧˥˔˧˘˚˜˖˃˥˜ˢ˥˜˧ˬʭ ˆ˧˥˔˧˘˚˜˖˃˥˜ˢ˥˜˧ˬʭ ʸ˖ˢˡˢˠ˜˖ˉ˜˕˥˔ˡ˖ˬ˔ˡ˗˄˨˔˟˜˧ˬˆ˘˥˩˜˖˘˦ ʴ˙˙ˢ˥˗˔˕˟˘ʿ˜˩˜ˡ˚ ʺ˥ˢ˪˧˛ˀ˔ˡ˔˚˘ˠ˘ˡ˧ ʴ˥˘˔˦ˢ˙ʹˢ˖˨˦ʴ˥˘˔˦ˢ˙ʹˢ˖˨˦ʴ˥˘˔˦ˢ˙ʹˢ˖˨˦ ϧʶ˥˘˔˧˘˖˟˔˥˜˧ˬʟ˔˟˜˚ˡˠ˘ˡ˧ʟ˔ˡ˗˨ˡ˜˧ˬ˪˜˧˛ ϧʻˢ˨˦˜ˡ˚˩˔˥˜˘˧ˬ˔ˡ˗˔˙˙ˢ˥˗˔˕˜˟˜˧ˬ ϧʶ˨˟˧˨˥˔˟˔ˡ˗˥˘˖˥˘˔˧˜ˢˡ˔˟ ˘˖ˢˡˢˠ˜˖˗˘˩˘˟ˢˣˠ˘ˡ˧ˣ˔˥˧ˡ˘˥˦˜ˡ˗˘Ѓˡ˜ˡ˚ ˢˣˣˢ˥˧˨ˡ˜˧˜˘˦˧˛˔˧ˣ˥ˢ˩˜˗˘˔˖˖˘˦˦ ϧˇ˥˔ˡ˦ˣˢ˥˧˔˧˜ˢˡˢˣ˧˜ˢˡ˦˔ˡ˗˔˖˖˘˦˦ʶ˜˧ˬ˟˘˔˗˘˥˦˛˜ˣ˔ˡ˗˖ˢˠˠ˨ˡ˜˧ˬ˩˔˟˨˘˦ ˔ˡ˗˘ˤ˨˜˧ˬ ϧʸˤ˨˜˧˔˕˟˘˥˘˚˨˟˔˧ˢ˥ˬ˟˔ˡ˗˦˖˔ˣ˘˔ˡ˗ϧʸ˦˧˔˕˟˜˦˛˖ˢˠˣ˘˧˜˧˜˩˘˔ˡ˗˦˨˦˧˔˜ˡ˔˕˟˘ ϧˇ˛˘ˢ˥˚˔ˡ˜˭˔˧˜ˢˡ˔ˡ˗˦˘˥˩˜˖˘˦˥˘Є˘˖˧ ˔ˣˣ˥ˢ˔˖˛˧ˢ˘˙˙˘˖˧˜˩˘˟ˬ˔˟˟ˢ˖˔˧˘ʷˀʶ ˖˥˘˔˧˜˩˘˜ˡ˖˘ˡ˧˜˩˘˦ ˖˛˔ˡ˚˜ˡ˚˗˘ˠˢ˚˥˔ˣ˛˜˖˦˔ˡ˗ˡ˘˘˗˦ ˥˘˦ˢ˨˥˖˘˦ʟʿ˘˚˜˦˟˔˧˜˩˘˔˟˟ˢ˖˔˧˜ˢˡ˦ʟ˔ˡ˗ʶ˜˧ˬ ˜˗˘ˡ˧˜Ѓ˘˗˕ˬ˧˛˘˖ˢˠˠ˨ˡ˜˧ˬ ϧʴ˖˖˘˦˦˧ˢˢˣˣˢ˥˧˨ˡ˜˧˜˘˦˔ˡ˗ ˥˘˩˘ˡ˨˘ ˔ˠ˘ˡ˜˧˜˘˦ ϧ˂ˣ˘˥˔˧˜ˢˡ˦˔˥˘˦˨˦˧˔˜ˡ˔˕˟˘ʟ ϧʷ˘˩˘˟ˢˣ˜ˠˣ˟˘ˠ˘ˡ˧˔˧˜ˢˡ˧ˢˢ˟˦˔ˡ˗ ˜ˡ˧˘˚˥˔˧˘˗ʟ˔ˡ˗˘˔˦ˬ˧ˢˡ˔˩˜˚˔˧˘ ϧ˂˪ˡ˘˥ʠˢ˖˖˨ˣ˜˘˗˔˙˙ˢ˥˗˔˕˟˘˛ˢ˨˦˜ˡ˚ ˦˧˥˔˧˘˚˜˘˦˙ˢ˥ʶˢˠˣ˥˘˛˘ˡ˦˜˩˘˃˟˔ˡ˧ˢ˘ˡ˦˨˥˘ ˖˨˥˥˘ˡ˧˗˘˖˜˦˜ˢˡ˦˥˘Є˘˖˧˙˨˧˨˥˘ˣ˥ˢ˝˘˖˧˜ˢˡ˦ ϧˆ˘˥˩˜˖˘˗˘˟˜˩˘˥ˬ˜˦ˢˣ˧˜ˠ˜˭˘˗ʟ ϧʼˡ˖˥˘˔˦˜ˡ˚ˢ˪ˡ˘˥˦˛˜ˣˢˣˣˢ˥˧˨ˡ˜˧˜˘˦ ˖ˢ˦˧˘˙˙˘˖˧˜˩˘ʟ˔ˡ˗˥˘Є˘˖˧ˢ˨˥ ˙ˢ˥ʵ˟˔˖˞ʟʼˡ˗˜˚˘ˡˢ˨˦ʟ˃˘ˢˣ˟˘ˢ˙ʶˢ˟ˢ˥ʟ ϧʴ˗ˢˣ˧˗˘˦˜˚ˡ˚˨˜˗˘˟˜ˡ˘˦˧˛˔˧˕˘˧˧˘˥˥˘Є˘˖˧ ʹˢ˨ˡ˗˔˧˜ˢˡ˔˟˃˥˜ˡ˖˜ˣ˟˘˦ ˔ˡ˗ˆ˘ˡ˜ˢ˥˦ ʶˢ˨ˡ˖˜˟˔ˡ˗˖ˢˠˠ˨ˡ˜˧ˬ˩˔˟˨˘˦ .*.$!"/''*/)%'.%.3*/)%',*$!-.!,()#*0 9 4XHVWLRQV"&RQWDFWWKH&LW\&OHUN¶V2IILFH (./ &' ( &LW\&RXQFLO6HSWHPEHU &,7<2)52&+(67(50,11(627$ &LW\&RXQFLO0,187(6 $WWHQGLQJDQG9LHZLQJWKH0HHWLQJ 3OHGJHRI$OOHJLDQFH 9LVLRQ3ULQFLSOHVDQG3ULRULWLHVIRUWKH&LW\RI5RFKHVWHU 9LVLRQ3ULQFLSOHVDQG3ULRULWLHV $ 2SHQ&RPPHQW3HULRG $ 6LJQXS,Q3HUVRQ0LQXWHVEHIRUHWKHPHHWLQJ9LHZ2SHQ&RPPHQW JXLGHOLQHVIRUDGGLWLRQDOZD\VWRSDUWLFLSDWH9LUWXDOSDUWLFLSDWLRQLVQRW DYDLODEOHDWWKLVWLPH 2SHQ&RPPHQW3HULRG*XLGHOLQHV 7KHRSHQSXEOLFFRPPHQWSHULRGZDVRSHQHGDQGWKHIROORZLQJSHUVRQVZHUHFDOOHG WRVSHDN 5RG+DZRUWK :D\QH:LOVRQ 7HUU\7KURQGVRQVSHDNLQJDVWKH3UHVLGHQWRIWKH6ROGLHUV)LHOG0HPRULDO $SRVWROLV3DXO3VRPDV 1LFN&KRQLV %HQMDPLQ=DVWURZVSHDNLQJDVWKH3UHVLGHQWRIWKH/RZHUWRZQ1HLJKERUKRRG $VVRFLDWLRQ $WWHQGHH1DPH6WDWXV %URRNH&DUOVRQ3UHVHQW 0ROO\'HQQLV3UHVHQW 6KDXQ3DOPHU3UHVHQW .HOO\5DH.LUNSDWULFN3UHVHQW 1RUPDQ:DKO3UHVHQW 0DUN%UDQVIRUG3UHVHQW 3DWULFN.HDQH3UHVHQW .LP1RUWRQ3UHVHQW & &LW\$GPLQLVWUDWRU¶V5HSRUW $GPLQLVWUDWRU¶V5HSRUWIRU6HSWHPEHU ' 0D\RU¶V5HSRUW 0D\RU¶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³TXLFNWDNH´SURFHGXUHXQGHU0LQQ6WDW &RYHU3DJH /HWWHU5$(',5HTXHVWIRU(FRQRPLF'HYHORSPHQW)XQGV %XVLQHVV6XEVLG\$JUHHPHQW&\WRWKHU\[ ) 0Q'272IILFHRI$HURQDXWLFV$PHULFDQ5HVFXH3ODQ&RPSDQLRQ*UDQW $PHQGPHQW 2IILFLDO$FW $GRSWHG5HVROXWLRQ1R %HWZHHQWKHPRWLRQDQGWKHYRWH&LW\$GPLQLVWUDWRU=HOPVVSRNHWRWKHLWHP &LW\$GPLQLVWUDWRU=HOPVVSRNHWRWKHLWHP 0D\RU1RUWRQOHIWWKH&KDPEHUVDW 9DFDWLRQ([KLELW&'9$&%ORFN&XPPLQJ¶V$GGLWLRQ$OOH\ 9DFDWLRQ $SSOLFDQW/HWWHU )LQGLQJV&'9$&%ORFN&XPPLQJ¶V$GGLWLRQ $OOH\9DFDWLRQ 6XEGLYLVLRQ3ODW&'9$&%ORFN&XPPLQJ¶V$GGLWLRQ$OOH\ 9DFDWLRQ $JHQF\5HYLHZ&RPPHQWV&'9$&%ORFN&XPPLQJ¶V$GGLWLRQ $OOH\9DFDWLRQ 3=&0HHWLQJ0LQXWHV&'9$&%ORFN&XPPLQJ¶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±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ĐŽŵŵƵŶŝĐĂƚŝŽŶƌĞƐŽƵƌĐĞƐƚŽĞĂƐĞ ƐĐŽƌŝŶŐĚƌŝǀĞƐƌĞƐƵůƚƐĨŽƌŽƚŚĞƌ KƉƚŝŽŶƐĨŽƌŵĞŵďĞƌƐƚŽŵĂŬĞ ĞŶĞĨŝƚZĞƐŽƵƌĐĞĞŶƚĞƌ͕ĂŶĚ ŵŽƌĞĞĨĨŝĐŝĞŶƚĐĂƌĞĚĞĐŝƐŝŽŶƐ ƚƌĂŶƐƉĂƌĞŶĐLJĂŶĚŵŝŶŝŵŝnjĞ LJŽƵƌĂĚŵŝŶŝƐƚƌĂƚŝǀĞďƵƌĚĞŶƐ ŽŵƉĞƚŝƚŝǀĞŵĂƌŬĞƚŝŶŐĂŶĚ ǁŝƚŚŽƵƚƐĂĐƌŝĨŝĐŝŶŐƋƵĂůŝƚLJ ĚŵŝŶŝƐƚƌĂƚŝŽŶƉůĂƚĨŽƌŵƐ͕ &DUH,QWHUYHQWLRQ $QFLOODU\%HQHILWV ^ŽůƵƚŝŽŶƐƚŽŝŶĐƌĞĂƐĞ ƉŚĂƌŵĂĐLJĐŽƐƚƐ 3KDUPDF\ +56HUYLFHV ƉůĂŶƐĞƌǀŝĐĞƐ $&RPSUHKHQVLYH+ROLVWLF9LHZRI<RXU(PSOR\HH%HQHILWV3ODQ ǁŝƚŚĨĞĚĞƌĂůĂŶĚƐƚĂƚĞƌĞŐƵůĂƚŝŽŶƐ ŵĂŶĂŐĞŵĞŶƚĂŶĂůLJƐŝƐĂŶĚĂůŝŐŶĞĚ 8QGHUZULWLQJ $QDO\WLFV ƉŽůŝĐŝĞƐƚŽƉƌŽŵŽƚĞĐŽŵƉůŝĂŶĐĞ EĞŐŽƚŝĂƚŝŽŶΘŵĂŶĂŐĞŵĞŶƚƚŽ dŽŽůƐ͕ĞdžƉĞƌƚŐƵŝĚĂŶĐĞ͕ĂŶĚ ŝŶĐĞŶƚŝǀĞƐƚŽŝŵƉƌŽǀĞŚĞĂůƚŚ +HDOWKFDUH5HIRUP 3RSXODWLRQ+HDOWK tĞůůŶĞƐƐĚĞƐŝŐŶ͕ĚŝƐĞĂƐĞ (PSOR\HH%HQHILWV3UDFWLFH 0DQDJHPHQW &RPSOLDQFH ĐŽŶƚĂŝŶƉůĂŶĐŽƐƚƐ ĐŽŶƚĂŝŶ Ͳ ĨƵŶĚĞĚďĞŶĞĨŝƚƐĐŽŵƉĞƚŝƚŽƌďƌŽŬĞƌ͕ĚĞůŝǀĞƌŝŶŐůŽŶŐ ƚĞƌŵ͕ŵĞĂŶŝŶŐĨƵůĨŝŶĂŶĐŝĂůŝŵƉĂĐƚ ΎĐĐŽƵŶƚƐƐŚŽǁŶĂďŽǀĞƌĞƉƌĞƐĞŶƚĂƉƉƌŽdžŝŵĂƚĞůLJϰϬйŽĨŽǀĞƌĂůůh^/ŵƉůŽLJĞĞ ŵƉůŽLJĞƌƐ&ŝůŝŶŐϱϱϬϬ tŝƚŚĂEĂŵĞĚƌŽŬĞƌ ƐƵƉĞƌŝŽƌĂĐĐŽƵŶƚƐĞƌǀŝĐĞ͘ ƉƌŽŵŽƚĞƌĞŐƵůĂƚŽƌLJ ĚĞůŝǀĞƌ h^/͛ƐĞŵƉůŽLJĞĞďĞŶĞĨŝƚĞdžƉĞƌŝĞŶĐĞƚŚĂŶĂŶLJŽƚŚĞƌ ƉƌĂĐƚŝĐĞŝƐĚĞƐŝŐŶĞĚƚŽ ^ŽƵƌĐĞ͗DŝĚŐĞŵƉůŽLJĞĞĞŶĞĨŝƚƐƉƌŽĚƵĐƚ ĂŶĚ Ͳ h^/ŚĂƐŵŽƌĞƐĞůĨ ĐŽŵƉůŝĂŶĐĞ ĨŽƌĐůŝĞŶƚƐ͘ ĞŶĞĨŝƚĐůŝĞŶƚƐ͘ ͕ ĐŽƐƚ _ %5,$102( 3UDFWLFH /HDGHUV LJŽƵŐĞƚŝŶĚƵƐƚƌLJǁŝĚĞĞdžƉĞƌƚŝƐĞ ƐŽ ŶĂƚŝŽŶĂůůLJ ďĂƐĞĚĞdžƉĞƌƚƐ ǁŚĞŶĞǀĞƌLJŽƵŶĞĞĚŝƚ &RQQHFWLYLW\ :RUOGZLGH 7HFKQRORJ\ &RQVXOWDQWV %85.(77 $11( ĞĞƉůLJĐŽŶŶĞĐƚĞĚ +5 ĞĚŝĐĂƚĞĚƚĞĐŚŶŝĐĂůĞdžƉĞƌƚƐŶĞƚǁŽƌŬĞĚŶĂƚŝŽŶĂůůLJĂŶĚĞŵďĞĚĚĞĚŝŶůŽĐĂůŽĨĨŝĐĞƐ͕ǁŝƚŚ (%GRFXPHQW ϭϬ͕ϬϬϬнƉƌŽĨĞƐƐŝŽŶĂůƐŶĂƚŝŽŶǁŝĚĞƚŽďƵŝůĚŝŶƚĞŐƌĂƚĞĚĐůŝĞŶƚĐĞŶƚĞƌĞĚĂĐĐŽƵŶƚƚĞĂŵƐ͘ ůŽĐĂůůLJ %ULDQ0RH$XJXVW hŶĚĞƌǁƌŝƚŝŶŐĂŶĚZĞŶĞǁĂů'ƵŝĚĂŶĐĞͬŶŶƵĂůƵĚŐĞƚŝŶŐƐƐŝƐƚĂŶĐĞ _ ,ƵŵĂŶZĞƐŽƵƌĐĞƐΘŵƉůŽLJĞĞŽŵŵƵŶŝĐĂƚŝŽŶ^ƵƉƉŽƌƚ ĐĐĞƐƐƚŽĂĞĚŝĐĂƚĞĚWŽƉƵůĂƚŝŽŶ,ĞĂůƚŚŝƌĞĐƚŽƌ ^ƵƉƉŽƌƚĞĚďLJĂƚĂ WŽƉƵůĂƚŝŽŶ,ĞĂůƚŚͬtĞůůŶĞƐƐƉƌŽŐƌĂŵƐƵƉƉŽƌƚ͗ ƌĞĂƚĞDĞĚŝĐĂůΘZdžŽƐƚ^ĂǀŝŶŐƐ^ƚƌĂƚĞŐŝĞƐ DĂƌŬĞƚƉůĂĐĞ>ĞǀĞƌĂŐĞǁŝƚŚĂƌƌŝĞƌƐ ŝƌĞĐƚƚŽWƌŽǀŝĚĞƌŽŶƚƌĂĐƚŝŶŐ^ƵŐŐĞƐƚĞĚWƌŽŐƌĂŵ^ƚƌĂƚĞŐŝĞƐ ŝƌĞĐƚWƌŝŵĂƌLJĂƌĞ^ƚƌĂƚĞŐŝĞƐ DĞĚŝĐĂůWůĂŶhƚŝůŝnjĂƚŝŽŶZĞƉŽƌƚƐ ŶĐŝůůĂƌLJWůĂŶ^ĂǀŝŶŐƐ^ƚƌĂƚĞŐŝĞƐ ĨĨŽƌĚĂďůĞ,ĞĂůƚŚĐĂƌĞĐĐĞƐƐ͗ ĞŶĞĨŝƚƐĞŶĐŚŵĂƌŬŝŶŐĂƚĂ ĞŶĞĨŝƚƐΘ,ZŽŵƉůŝĂŶĐĞ ůŝŶŝĐĂůZĞƉŽƌƚŝŶŐ +RZZLOO86,+HOS7KH&LW\RI5RFKHVWHU" ¾¾¾¾¾¾¾¾¾¾ _ 7+$1.<28 ĂĐĐŽƵŶƚƐŝŶDEĂƌĞ ĐůŽƐĞƐƚĐŽŵƉĞƚŝƚŽƌ ŵĂƌŬĞƚĂŶĚůĂƌŐĞ ϱϱϬϬ͛ƐƚŚĂŶŶĞdžƚ 6KRZVE\&DVH&RXQWV 5HY$OO Ͳ ƌŽŬĞƌƐďLJϱϱϬϬ ŚĂƌƚŝůůƵƐƚƌĂƚĞĚ ΕϴϬйŽĨŵŝĚĚůĞ ǁŝƚŚϭϬďƌŽŬĞƌƐ h^/ĨŝůĞƐŶĞĂƌůLJ ƚǁŝĐĞĂƐŵĂŶLJ 6RXUFHPL(GJHILOLQJV 6XPPDU\ ĨŝůŝŶŐƐ (PSOR\HU6L]HV h^/DĂƌŬĞƚWƌĞƐĞŶĐĞŝŶDE _ (%GRFXPHQW 6DP5RPHR-XO\ ² 86,&RQILGHQWLDO 3URSULHWDU\ ĞdžƉĞƌƚŵĂƌŬĞƚŶĞŐŽƚŝĂƚŝŽŶ ĂƐƐĞƐƐŵĞŶƚ͕ĂŶĂůLJƐŝƐĂŶĚ ƚŽŝĚĞŶƚŝĨLJĂŶĚŝŶĐƌĞĂƐĞ ŝŶƐƵƌĞƌƐ͛ƉƌŽĨŝƚƐŽƵƌĐĞƐ͘ h^/͛ƐƵŶĚĞƌǁƌŝƚŝŶŐĂŶĚ 8QGHUZULWLQJDQG$QDO\WLFV ƚƌĂŶƐƉĂƌĞŶĐLJĂƌŽƵŶĚ ďĞŶĐŚŵĂƌŬŝŶŐǁŝƚŚ ĂŶĂůLJƚŝĐƐƐŽůƵƚŝŽŶƐ ŝŶƚĞŐƌĂƚĞƐƵƉĞƌŝŽƌ ZĞŶĞǁĂůWƌŽũĞĐƚŝŽŶƐΘ&ƵŶĚŝŶŐŶĂůLJƐŝƐ 'HVLJQHG3ODQDWD+LJKO\ ůƚĞƌŶĂƚŝǀĞZĞŝŵďƵƌƐĞŵĞŶƚŶĂůLJƐŝƐ WůĂŶĞƐŝŐŶΘŽŶƚƌŝďƵƚŝŽŶŶĂůLJƐŝƐ ůĂŝŵƐŽƐƚĂŶĚZŝƐŬƐƐĞƐƐŵĞŶƚ ŚŽƵƐĞ&ŝŶĂŶĐŝĂůŶĂůLJƐƚƐ /ŶƚĞƌŶĂƚŝŽŶĂůdžƉŽƐƵƌĞŶĂůLJƐŝƐ ĂŶĚhŶĚĞƌǁƌŝƚĞƌƐEĂƚŝŽŶǁŝĚĞ $&XVWRPL]HG:HOO &RPSHWLWLYH3ULFH WƌĞĚŝĐƚŝǀĞDŽĚĞůŝŶŐ dƌĞŶĚDŝƚŝŐĂƚŝŽŶ ĞŶĐŚŵĂƌŬŝŶŐ Ͳ ϭϬϬн/Ŷ ,QGXVWU\EHQFKPDUNHGGDWD _ 3URWHFWWKHFOLHQWIURPRYHU FKDQJHLQVSHFLILFVWRSORVV HQVXUHVPRVWFRPSHWLWLYH 6WRS/RVV%HQFKPDUNLQJ SUHPLXPIRUDSSURSULDWH %HQFKPDUNLQJ$QDO\VLVWR0DQDJH5LVN7ROHUDQFH UHGXFWLRQLQ ,PSDFWDQG%HQHILWV (%GRFXPHQW 86,·VSURSULHWDU\WRROEHQFKPDUNVFOLHQW·VVWRSORVVFRYHUDJHWR (%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFXPHQW(%GRFX PHQW(%GRFXPHQW %ULDQ0RH$XJXVWNOHYHO 3UHVHQWUDQJHRIRSWLRQVWRFOLHQWDQGDOORZWKHPWRVHOHFWWKH VSHFLILFVWRSORVVGHGXFWLEOHWKDWEHVWVXLWVWKHLUEXVLQHVVQHHGV ,GHQWLI\WKHDSSURSULDWHUDQJHRIVSHFLILFVWRSORVVGHGXFWLEOH 81'(5:5,7,1* $1$/<7,&6 RSWLRQVEDVHGRQWKHFOLHQW·VVSHFLILFGHPRJUDSKLFV KŶĞWĂŐĞƌ (VWLPDWHWKH6WRS/RVV3UHPLXPV3(30 3URSULHWDU\ ʹ ŽŶĨŝĚĞŶƚŝĂůΘWƌŽƉƌŝĞƚĂƌ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ŶĞWĂŐĞƌ FRVWRI 2EWDLQIURP RQFODLPDQW JURXSLQIR FRQWLQXHG HOLJLELOLW\ 5HWXUQWRZRUN FLUFXPVWDQFHV VWDWXV OLPLWLQJ DJHGLYRUFH 2WKHUNQRZQ ʹ 5HWLUHPHQW GHSHQGHQW 3HUPDQHQW &KDQJHLQ 0HGLFDUH ŽŶĨŝĚĞŶƚŝĂůΘWƌŽƉƌŝĞƚĂƌ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ĞƚǁŽƌŬ^ƚĞĞƌĂŐĞĂŶĚĚƵĐĂƚŝŽŶƚŚƌŽƵŐŚĂĚŵŝŶŝƐƚƌĂƚŽƌĞŶƐƵƌĞŵĞŵďĞƌƐĂƌĞĂǁĂƌĞŽĨ ǁŝŶ͟ŽƉƉŽƌƚƵŶŝƚLJĨŽƌůŽĐĂůĞŵƉůŽLJĞƌƐ͕ƚŚĞŝƌĞŵƉůŽLJĞĞƐĂŶĚKůŵƐƚĞĚ _ ĞŵƉůŽLJĞƌ͛ƐŽǀĞƌĂůůŚĞĂůƚŚĐĂƌĞƐƉĞŶĚĂƚ ĂĨĨŽƌĚĂďůĞĨŽƌĞŵƉůŽLJĞĞƐĂŶĚƚŚĞŝƌĨĂŵŝůŝĞƐƚŽƐĞĞŬƉƌŝŵĂƌLJĂŶĚƐĞĐŽŶĚĂƌLJĐĂƌĞĂƚ dŚĞƐĞĐŽŶƚƌĂĐƚƐƉƌŽǀŝĚĞĂĚĚŝƚŝŽŶĂůĨůĞdžŝďŝůŝƚLJƚŽƚŚĞƉůĂŶĂŶĚƉƌŽǀŝĚĞĂĚĚŝƚŝŽŶĂů ŵĂŶĂŶĚĞƐƚĂďůŝƐŚĞƐĂĚŝƌĞĐƚ ƉŽĐŬĞƚĐŽƐƚƐ KDǁŚŝůĞŵĂŝŶƚĂŝŶŝŶŐŽƉĞŶĂĐĐĞƐƐƚŽƚĞƌƚŝĂƌLJĂŶĚƋƵĂƚĞƌŶĂƌLJĐĂƌĞ͘ Ͳ ŽĨ KDŐƌŽǁƐƚŚĞĚŝƐĐŽƵŶƚƐŽŶKD͛ƐĐŚĂƌŐĞƐǁŝůůŐƌŽǁĂƐǁĞůů͘ Ͳ DĞĚŝĐĂůĞŶƚĞƌƚŚƌŽƵŐŚďĞŶĞĨŝƚĚĞƐŝŐŶŽƉƚŝŽŶƐƚŚĂƚŬĞĞƉŽƵƚ (VWDEOLVK'LUHFWWR3URYLGHU&RQWUDFWV ƚƌĂŶƐƉĂƌĞŶĐLJƚŚĂƚĚŽĞƐŶŽƚĞdžŝƐƚŝŶƚŽĚĂLJ͛ƐĞŶǀŝƌŽŶŵĞŶƚ͘ ƌĞůĂƚŝŽŶƐŚŝƉǁŝƚŚĂƉƌŽǀŝĚĞƌĂŶĚĞŵƉůŽLJĞƌ͛ƐŚĞĂůƚŚƉůĂŶ͘ ĞĨĨĞĐƚŝǀĞƉƌŽǀŝĚĞƌĨŽƌƚŚĞŝƌĐŽŶĚŝƚŝŽŶ͘ Ͳ ŝƌĞĐƚƚŽWƌŽǀŝĚĞƌŽŶƚƌĂĐƚƌĞŵŽǀĞƐƚŚĞŵŝĚĚůĞ dŚĞďĂƐŝĐƉƌĞŵŝƐĞ͗ƐƚŚĞƉĞƌĐĞŶƚĂŐĞŽĨĂŶ ƉƌĞƐĐƌŝƉƚŝŽŶĚƌƵŐĐŽƐƚƐ tŚĂƚŝƐĂŝƌĞĐƚŽŶƚƌĂĐƚ͍ tŚĂƚĂƌĞƚŚĞďĞŶĞĨŝƚƐ͍ Ͳ ǁŝŶ Ͳ ƚŚĞŵŽƐƚĐŽƐƚ Ͳ ƌĞĂƚĞƐ͞ǁŝŶ ^ĂǀŝŶŐƐŽŶ ʹʹʹʹʹʹ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´IUHHµSUHYHQWLYHFDUH GXHWRILQDQFLDOOLPLWDWLRQV 0DQ\SK\VLFLDQVKDYHIDLOHGWRIXOO\DGRSWDQLQWHUDFWLYHYLUWXDO 86,HYDOXDWHVWKHILQDQFLDOLPSDFWRIIL[HGFRVWLQYHVWPHQWDQG &KURQLFPHGLFDOFRQGLWLRQVUHTXLUHDQDFWLYHDQGHQJDJHG VHUYLFHPRGHO 'LUHFW3ULPDU\&DUH SODWIRUPZKLOHWHOHPHGLFLQHGRHVQ·WIDFLOLWDWHORQJ RI DFFHVVDQGUHGXFHRXW IRU FRPSDUHLWWRWKHWUDGLWLRQDO332IHH KŶĞWĂŐĞƌ &$5(,17(59(17,21 EHWZHHQSDWLHQWVDQGSK\VLFLDQV ʹ ŽŶĨŝĚĞŶƚŝĂůΘWƌŽƉƌŝĞƚĂƌ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ŶĞWĂŐĞƌ WUDQVODWLRQVHUYLFHVDUHDYDLODEOH +56(59,&(6 GHPDQGSUHVHQWDWLRQV ʹ ŽŶĨŝĚĞŶƚŝĂůΘWƌŽƉƌŝĞƚĂƌLJ 86,,QVXUDQFH6HUYLFHV$OOULJKWVUHVHUYHG UHTXLUHGQRWLFHV PDLOHUVEHQHILW 86,,QVXUDQFH6HUYLFHV$OOULJKWVUHVHUYHG RQ ^KWK&^Zs/^ tĞďĞůŝĞǀĞŽƵƌĨƵůůͲƐĞƌǀŝĐĞĐƵůƚƵƌĞ͕ƚĞĂŵͲŽƌŝĞŶƚĞĚĂƉƉƌŽĂĐŚ͕ĂŶĚƐĞƌǀŝĐĞĚĞůŝǀĞƌLJƉƌŽĐĞƐƐĂůůŽǁƵƐƚŽƐƚĂŶĚŽƵƚ ĨƌŽŵŽƵƌĐŽŵƉĞƚŝƚŽƌƐĂŶĚĂƌĞƚŚĞŝĚĞĂůŵŽĚĞůĨŽƌLJŽƵƌĐŽŵƉĂŶLJ͛ƐĞŵƉůŽLJĞĞďĞŶĞĨŝƚƐŶĞĞĚƐ͘dŚĞĂďŝůŝƚLJƚŽ ĚĞǀĞůŽƉĂƉĂƌƚŶĞƌƐŚŝƉǁŝƚŚƚŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌĂŶĚďĞĐŽŵĞĂŶŝŶǀĂůƵĂďůĞƌĞƐŽƵƌĐĞƚŽLJŽƵƌŚƵŵĂŶƌĞƐŽƵƌĐĞƐ ĂŶĚĨŝŶĂŶĐĞĚĞƉĂƌƚŵĞŶƚƐŝƐĚƌŝǀĞŶďLJƚŚĞƐƚƌĞŶŐƚŚŽĨŽƵƌĐŽŵƉƌĞŚĞŶƐŝǀĞŶŶƵĂů^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ͘dŚĞĨŽůůŽǁŝŶŐ ŝƐĂƐƚĂƚĞŵĞŶƚŽĨh^/͛Ɛ^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ͘ h^/ŽŶƐƵůƚŝŶŐ&ĞĞ ϭϬͬϭͬϮϰͲϭϮͬϯϭͬϮϰ Ψϵ͘ϮϱWĞƌŵƉůŽLJĞĞWĞƌDŽŶƚŚ;ĂƉƉƌŽdžŝŵĂƚĞůLJΨϮϱ͕ϬϬϬͿĂĚŵŝŶŝƐƚĞƌĞĚƚŚƌŽƵŐŚDĞĚŝĐĂ x ĂŶƉƉŽŝŶƚh^/ĂƐŽŶƐƵůƚĂŶƚĂŶLJƚŝŵĞƉƌŝŽƌƚŽϭϬͬϭ x EĞŐŽƚŝĂƚĞĂŶĚZĞǀŝĞǁϭͬϭͬϮϱDĞĚŝĐĂZĞŶĞǁĂů x ƐƚĂďůŝƐŚĚĂƚĂĨĞĞĚĐŽŶŶĞĐƚŝŽŶǁŝƚŚDĞĚŝĐĂͬh^/;ϵϬͲϭϮϬĚĂLJůĞĂĚƚŝŵĞͿ x R<ĞLJĐŽŵƉŽŶĞŶƚƚŽďĞŐŝŶƉůĂŶĂŶĂůLJƐŝƐϮϬϮϱ WĂƌƚŝĐŝƉĂƚĞŝŶĞŶĞĨŝƚ&Ăŝƌ x R h^/ƐŽĨƚŝŶƚƌŽĚƵĐƚŝŽŶƚŽĞŵƉůŽLJĞĞƐ R͞tŚLJdŚĞŝƚLJŽĨZŽĐŚĞƐƚĞƌŚŝƌĞĚh^/͟ R^ƚƌĂƚĞŐŝĐƉůĂŶŶŝŶŐĂŶĚŝŶŝƚŝĂƚŝǀĞƐŝŶϮϬϮϱĂŶĚďĞLJŽŶĚ ϭͬϭͬϮϱͲKŶŐŽŝŶŐ ΨϭϬWĞƌŵƉůŽLJĞĞWĞƌDŽŶƚŚ&ĞĞĂĚŵŝŶŝƐƚĞƌĞĚƚŚƌŽƵŐŚDĞĚŝĐĂ x ^ĞĞŶŶƵĂů^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐĨŽƌĂŶŶƵĂůĐŽŶƐƵůƚŝŶŐĂŶĚƉůĂŶŶŝŶŐ x h^/ŶŶƵĂů^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ WƌŽŐƌĂŵƐĞƌǀŝĐĞ ĐƚŝŽŶĚĞƚĂŝůƐ ŵĂŶĂŐĞŵĞŶƚ ŶŶƵĂů^ĞƌǀŝĐĞƐ /ŶĐŽŽƉĞƌĂƚŝŽŶǁŝƚŚLJŽƵƌ,ƵŵĂŶZĞƐŽƵƌĐĞƚĞĂŵ͕ǁĞǁŝůůĚĞǀĞůŽƉĂŶĂŶŶƵĂůƐĞƌǀŝĐĞƐƚŝŵĞůŝŶĞƚŚĂƚ dŝŵĞůŝŶĞ ǁŝůůƐĞƌǀĞĂƐŽƵƌƌŽĂĚŵĂƉƚŽĞŶƐƵƌĞĂŐƌĞĞĚƵƉŽŶŐŽĂůƐĂƌĞĂĐŚŝĞǀĞĚ͕ĚĞĂĚůŝŶĞƐĂƌĞŵĞƚ͕ĂŶĚ ĚŝĂůŽŐƵĞŝƐŽŶŐŽŝŶŐ͘ ĐĐŽƵŶƚ ŶƐƵƌĞƉƌŽŵƉƚĂŶĚƚŝŵĞůLJƌĞƐƉŽŶƐĞƐƚŽYƵĂůŝƚLJĂƐƐƵƌĂŶĐĞƌĞǀŝĞǁ ŵĂŶĂŐĞŵĞŶƚ ĂůůƉŚŽŶĞĐĂůůƐĂŶĚĞŵĂŝůƐ͘ ĞǀĞůŽƉĂŶĚŵŽŶŝƚŽƌƉĞƌĨŽƌŵĂŶĐĞ WƌŽĂĐƚŝǀĞŵĂŶĂŐĞŵĞŶƚŽĨĂĚĚŝƚŝŽŶĂůŐƵĂƌĂŶƚĞĞƐ͘ ƐĞƌǀŝĐĞƐ ůĂŝŵƐĂŶĚĐŽǀĞƌĂŐĞĂƐƐŝƐƚĂŶĐĞ͘ WƌŽǀŝĚĞĂŶŶƵĂůĂŶĚŽƉĞŶĞŶƌŽůůŵĞŶƚ ŽŽƌĚŝŶĂƚŝŽŶǁŝƚŚĂůůƐĞƌǀŝĐĞƉĂƌƚŶĞƌƐ ƐĞƌǀŝĐĞĐĂůĞŶĚĂƌ͘ ϭϲ WĂŐĞŽĨ h^/ŶŶƵĂů^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ WƌŽŐƌĂŵƐĞƌǀŝĐĞ ĐƚŝŽŶĚĞƚĂŝůƐ ŵĂŶĂŐĞŵĞŶƚ WůĂŶĚĞƐŝŐŶŝŶƚĞƌƉƌĞƚĂƚŝŽŶWƌŽƚĞĐƚĐůŝĞŶƚĨƌŽŵ,/WƉƌŝǀĂĐLJĞdžƉŽƐƵƌĞ͘ &ƵŶĚŝŶŐĂŶĚďŝůůŝŶŐŝƐƐƵĞƐĚŵŝŶŝƐƚƌĂƚŝǀĞƚƌŽƵďůĞƐŚŽŽƚŝŶŐ >ĞŐŝƐůĂƚŝǀĞŝŶƚĞƌƉƌĞƚĂƚŝŽŶ;KZ͕K>͕ƐƐŝƐƚǁŝƚŚŝŶĨŽƌŵĂůĞŵƉůŽLJĞĞ ,/W͕&ĂŵŝůLJ>ĞĂǀĞ͕ͿĐŽŵŵƵŶŝĐĂƚŝŽŶƐ WůĂŶŵĂŶĂŐĞŵĞŶƚ DŽŶƚŚůLJĞdžƉĞƌŝĞŶĐĞƌĞǀŝĞǁͬĐůĂŝŵƐŶŶƵĂůƌĞŶĞǁĂůƉůĂŶŶŝŶŐ ƐĞƌǀŝĐĞƐŝŶĐůƵĚŝŶŐ͗ ĚŽǁŶůŽĂĚƐ ŶŶƵĂů^ƚĞǁĂƌĚƐŚŝƉDĞĞƚŝŶŐ YƵĂƌƚĞƌůLJĂŶĚͬŽƌDŝĚLJĞĂƌŵĞĞƚŝŶŐƐ ĞƚĞƌŵŝŶĞƐŚŽƌƚĂŶĚ hŶĐŽǀĞƌďĞŶĞĨŝƚƐƉŚŝůŽƐŽƉŚLJ͘ĚǀŝƐĞŽŶEĂƚŝŽŶĂůĂŶĚ>ŽĐĂůDĂƌŬĞƚƉůĂĐĞ ůŽŶŐͲƚĞƌŵƉƌŽŐƌĂŵ ƚƌĞŶĚƐ͘ ĞǀĞůŽƉƉůĂŶŝŵƉůĞŵĞŶƚĂƚŝŽŶƐƚƌĂƚĞŐLJ͘ ŐŽĂůƐĂŶĚƐƚƌĂƚĞŐLJ ŝƐĐƵƐƐĂŶŶƵĂůŽďũĞĐƚŝǀĞƐĂŶĚĚĞƚĞƌŵŝŶĞ ĞŶĐŚŵĂƌŬƉůĂŶƐĂŐĂŝŶƐƚůŽĐĂůĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ ŝŶŝƚŝĂƚŝǀĞƐĨŽƌƚŚĞƵƉĐŽŵŝŶŐLJĞĂƌ͘ ŝŶĚƵƐƚƌLJƉĞĞƌƐĂŶĚŵĂƌŬĞƚƚƌĞŶĚƐ ĞǀĞůŽƉĂŶŶƵĂůďƵĚŐĞƚƐ͘ ZĞǀŝĞǁƉĂƐƚƉůĂŶĨŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ͘ ƌĞĂƚĞƐƚƌĂƚĞŐŝĐƉůĂŶĚĞƐŝŐŶ͘ ZĞǀŝĞǁƉůĂŶƉĞƌĨŽƌŵĂŶĐĞĂŶĚĚŝƐĐƵƐƐ ĂůƚĞƌŶĂƚŝǀĞĚĞƐŝŐŶƐtĞůůŶĞƐƐͬWŽƉƵůĂƚŝŽŶ,ĞĂůƚŚDĂŶĂŐĞŵĞŶƚ ĂƌƌŝĞƌŶĞŐŽƚŝĂƚŝŽŶƐ ƐƚĂďůŝƐŚƌĞŶĞǁĂůĂĐƚŝŽŶƉůĂŶǁŽƌŬDĂŶĂŐĞƐƚŽƉůŽƐƐŝŶƚĞŐƌŝƚLJ͘ ĂŶĚƌĞŶĞǁĂů ƐƚĞƉƐĂŶĚĂƐƐŽĐŝĂƚĞĚƚŝŵĞůŝŶĞ͘ ZĞǀŝĞǁŽĨƉůĂŶĐŽŶƚƌĂĐƚƐ ĂƌƌŝĞƌƉůĂŶƐƉĞĐŝĨŝĐĂƚŝŽŶƐƵƉͲůŽĂĚ͘ ZĞǀŝĞǁŽĨŬůĞƚƐĂŶĚǁĞďĐŽŶƚĞŶƚ EĞƚǁŽƌŬĂŶĂůLJƐŝƐ /ŵƉůĞŵĞŶƚĂƚŝŽŶƐƵƉƉŽƌƚ EĞŐŽƚŝĂƚĞƉůĂŶƌƵŶͲŽƵƚƉƌŽĐĞƐƐŝŶŐ ŝŶĚĐŽǀĞƌĂŐĞŽĨƐĞůĞĐƚĞĚŝŶƐƵƌĞƌƐ sĞŶĚŽƌƌĞůĂƚŝŽŶƐ ŽŽƌĚŝŶĂƚĞĂůůĐŽŵŵƵŶŝĐĂƚŝŽŶďĞƚǁĞĞŶ^ĞƌǀĞĂƐĐůŝĞŶƚĂĚǀŽĐĂƚĞ͘ ĐůŝĞŶƚĂŶĚǀĞŶĚŽƌ͘ džƉĞĚŝƚĞĐĂƌƌŝĞƌĐŽŵƉůĂŝŶƚƌĞƐŽůƵƚŝŽŶ͘ WƌŽǀŝĚĞŐƵŝĚĂŶĐĞĚƵƌŝŶŐǀĞŶĚŽƌ ,ŽƐƚǀĞŶĚŽƌĐĂůůƐĂƐŶĞĞĚĞĚ͘ ƐĞůĞĐƚŝŽŶ͘ tŽƌŬǁŝƚŚƚŚĞƉŽŝŶƚƐŽůƵƚŝŽŶƐǀĞŶĚŽƌƐ DĂŶĂŐĞŵĞŶƚŽĨƐĞƌǀŝĐĞƌĞƉƌĞƐĞŶƚĂƚŝŽŶ ĐŚŽƐĞŶďLJůŝĞŶƚ &ŝŶĂŶĐŝĂů ^ƚŽƉ>ŽƐƐĚĞĚƵĐƚŝďůĞĂŶĚĂƚƚĂĐŚŵĞŶƚ ŽŵƉƌĞŚĞŶƐŝǀĞhŶĚĞƌǁƌŝƚŝŶŐŶĂůLJƐŝƐ DĂŶĂŐĞŵĞŶƚ ĂŶĂůLJƐŝƐ͘ ĞǀĞůŽƉďƵĚŐĞƚƉƌŽũĞĐƚŝŽŶƐ͘ ,ĞĂůƚŚĐĂƌĞƌĞĨŽƌŵŵŽĚĞůŝŶŐ DŽŶŝƚŽƌͬĐŽŵŵƵŶŝĐĂƚĞďƵĚŐĞƚ ǀĂƌŝĂŶĐĞƐ͘h^/^ƚŽƉůŽƐƐĂŶĚƉĂŶĞůĐĂƌƌŝĞƌĂŶĂůLJƐŝƐ͘ ŽŶƚƌŝďƵƚŝŽŶŵŽĚĞůŝŶŐEĞƚǁŽƌŬĚŝƐĐŽƵŶƚĂŶĂůLJƐŝƐ KZƌĂƚĞĚĞǀĞůŽƉŵĞŶƚůƚĞƌŶĂƚŝǀĞĨƵŶĚŝŶŐĂŶĂůLJƐŝƐ;ŝŶĐůƵĚŝŶŐƵƐĞŽĨ ŐƌŽƵƉĐĂƉƚŝǀĞĨŽƌƐƵƉƉůĞŵĞŶƚĂůďĞŶĞĨŝƚƐͿ DŝĚͲzĞĂƌƌĞŶĞǁĂůĂŶĂůLJƐŝƐĂŶĚ ƉƌŽũĞĐƚŝŽŶĂůĐƵůĂƚĞŝŶĐƵƌƌĞĚďƵƚŶŽƚƌĞƉŽƌƚĞĚ;/EZͿ ĐůĂŝŵƐůŝĂďŝůŝƚŝĞƐǁŚĞŶĂƉƉůŝĐĂďůĞ͘ ƌĞĂƚĞĐŽŶƚƌŝďƵƚŝŽŶƐƚƌĂƚĞŐLJĂƉƉĞŶĚŝĐĞƐĂŶĚ ĂŶĂůLJƐŝƐ͘ ůĂŝŵƐZĞǀŝĞǁĂŶĚ DŽŶƚŚůLJͬYƵĂƌƚĞƌůLJƌĞǀŝĞǁĂŶĚĐůĂŝŵ/ĚĞŶƚŝĨLJŽƉƉŽƌƚƵŶŝƚŝĞƐƚŽŝŵƉĂĐƚĐůĂŝŵƐĂŶĚ ŶĂůLJƐŝƐ ƌĞƉŽƌƚŝŶŐƉƌŽũĞĐƚƐĂŶZK/ĨŽƌĞĂĐŚŽƉƉŽƌƚƵŶŝƚLJ͘ ϯ͗ĂƚĂƌŝǀĞƐĞĐŝƐŝŽŶƐͲWƌŽƉƌŝĞƚĂƌLJ ĚĂƚĂĂŶĂůLJƚŝĐƐƚŽŽůƚŚĂƚŝĚĞŶƚŝĨŝĞƐ Ϯϲ WĂŐĞŽĨ h^/ŶŶƵĂů^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ WƌŽŐƌĂŵƐĞƌǀŝĐĞ ĐƚŝŽŶĚĞƚĂŝůƐ ŵĂŶĂŐĞŵĞŶƚ ƉƌŝŵĂƌLJĐŽƐƚĚƌŝǀĞƌƐĂŶĚĐŽƐƚƐĂǀŝŶŐ ŽƉƉŽƌƚƵŶŝƚŝĞƐ͘ ĞŶĐŚŵĂƌŬŝŶŐ ŶŶƵĂůďĞŶĐŚŵĂƌŬŝŶŐƐƚƵĚLJŽĨ^ƚƵĚLJŽĨĂůůĞŵƉůŽLJĞĞďĞŶĞĨŝƚŽĨĨĞƌŝŶŐƐ͘ ĞŵƉůŽLJĞĞďĞŶĞĨŝƚƐ͘ /ŶĐůƵĚĞƐŽƚŚĞƌŝƚĞŵƐůŝŬĞWdKĂŶĚƌĞůĞǀĂŶƚ ĞĐŝƐŝŽŶƐƵƉƉŽƌƚƚŽŽůƐĨŽƌƌĞŶĞǁĂůƚŽƉŝĐƐŽĨƚŚĞĞƌĂ͘ ĞǀĂůƵĂƚŝŽŶ͘ ŵƉůŽLJĞĞ ƵŝůĚĐŽŵƉƌĞŚĞŶƐŝǀĞĐŽŵŵƵŶŝĐĂƚŝŽŶƐĞǀĞůŽƉĐƵƐƚŽŵŝnjĞĚǀŝĚĞŽƐ͘ ĐŽŵŵƵŶŝĐĂƚŝŽŶƐ ƐƚƌĂƚĞŐLJďĂƐĞĚŽŶ;EĞǁh^/ůŝĞŶƚͿ h^/ĞŶĞĨŝƚZĞƐŽƵƌĐĞĞŶƚĞƌ͕ĂǀĂŝůĂďůĞƚŽ ďƵĚŐĞƚ ĞŵƉůŽLJĞĞƐĂŶĚƚŚĞŝƌĚĞƉĞŶĚĞŶƚƐƚŚƌŽƵŐŚŽƵƚ WƌŽǀŝĚĞŽƉĞŶĞŶƌŽůůŵĞŶƚĐŽŽƌĚŝŶĂƚŝŽŶƚŚĞLJĞĂƌĨŽƌĂĚǀŝĐĞĂŶĚĂĚǀŽĐĂĐLJ͘ ĂŶĚƐƵƉƉŽƌƚĂŶĚĂƚƚĞŶĚĞŵƉůŽLJĞĞ h^/DŽďŝůĞƉƉ ŵĞĞƚŝŶŐƐ͘ ƌĞĂƚĞKƉĞŶŶƌŽůůŵĞŶƚ'ƵŝĚĞ WDƌĞǀŝĞǁĂŶĚ ůŝĞŶƚ^ƉĞĐŝĨŝĐWŚĂƌŵĂĐLJdƌĞŶĚĂŶĚWƌŽƉƌŝĞƚĂƌLJWĂƐƐͲdŚƌŽƵŐŚWŚĂƌŵĂĐLJWƌŽŐƌĂŵ ĐŽŶƚƌĂĐƚŶĞŐŽƚŝĂƚŝŽŶ ĞŶĐŚŵĂƌŬŶĂůLJƐŝƐʹh^/ůĞĂƌKƉƚŝŽŶƐZdžǀĞƌĂŐĞ^ĐƌŝƉƚWƌŝĐĞ WƌŽŐƌĂŵ WĞƌĨŽƌŵĂŶĐĞŶĂůLJƐŝƐ ZdžWƌŽŐƌĂŵDĂŶĂŐĞŵĞŶƚ^ƚƌĂƚĞŐŝĞƐ h^/ƉƌŽǀŝĚĞƐĂƐĞǀĞŶͲƉŽŝŶƚĐŽŶƚƌĂĐƚ ƌĞǀŝĞǁƚŽĨĂĐŝůŝƚĂƚĞŶĞŐŽƚŝĂƚŝŽŶŽĨ^ƉĞĐŝĂůƚLJWƌŽŐƌĂŵZĞǀŝĞǁ ĨĂǀŽƌĂďůĞƚĞƌŵƐĂŶĚƉƌŝĐŝŶŐ͘/ŶĐůƵĚŝŶŐ ďƵƚŶŽƚůŝŵŝƚĞĚƚŽƌĞďĂƚĞƚĞƌŵƐ͕tW ĚŝƐĐŽƵŶƚƐĂŶĚďƌĂŶĚĚĞĨŝŶŝƚŝŽŶ͘ WŽƉƵůĂƚŝŽŶ,ĞĂůƚŚ ĞǀĞůŽƉŽǀĞƌĂůůƉƌŽŐƌĂŵĚĞƐŝŐŶ͕ǀŝƐŝŽŶ͕/ŶƚĞŐƌĂƚĞǁŝƚŚďĞŶĞĨŝƚƐĚĞƐŝŐŶ;Ğ͘Ő͕͘ DĂŶĂŐĞŵĞŶƚĂŶĚ ŵƵůƚŝͲLJĞĂƌƐƚƌĂƚĞŐLJ͕ĂŶĚƐƚƌƵĐƚƵƌĞ͘ĚĞĚƵĐƚŝďůĞƐ͕ƉƌĞŵŝƵŵĚŝĨĨĞƌĞŶƚŝĂůƐ͕ ǁĞůůŶĞƐƐƉƌŽŐƌĂŵƐ ĐŽŶƚƌŝďƵƚŝŽŶƐ͕,ZĚĞƉŽƐŝƚƐͿ ƌĞĂƚĞĂŶĂŶŶƵĂůĐĂůĞŶĚĂƌŽĨĞǀĞŶƚƐ ĂŶĚĂĐƚŝǀŝƚŝĞƐ͘ĞůŝǀĞƌĞŵƉůŽLJĞĞĞĚƵĐĂƚŝŽŶĂŶĚ ĐŽŵŵƵŶŝĐĂƚŝŽŶ͘ /ŶƚĞŐƌĂƚĞǁŝƚŚĞdžŝƐƚŝŶŐƉůĂŶƐĂŶĚ ǀĞŶĚŽƌƐ͘>ĞǀĞƌĂŐĞĐĂƌƌŝĞƌƉƌŽŐƌĂŵƐĂŶĚƌĞƐŽƵƌĐĞƐ ǁŚĞŶĂƉƉƌŽƉƌŝĂƚĞ;Ğ͘Ő͕͘ŚĞĂůƚŚĐŽĂĐŚŝŶŐ͕ ĞǀĞůŽƉĚĞĨŝŶĞĚŵĞƚƌŝĐƐĂŶĚƚĂƌŐĞƚƐƚŽ ĚŝƐĞĂƐĞŵĂŶĂŐĞŵĞŶƚ͕ƋƵĂůŝƚLJƉƌŽǀŝĚĞƌ ŵĞĂƐƵƌĞƐƵĐĐĞƐƐ͘ ŶĞƚǁŽƌŬƐ͕ĞƚĐ͘Ϳ ĞƚĞƌŵŝŶĞŝŶĐĞŶƚŝǀĞĚĞƐŝŐŶ;ĂĐƚŝǀŝƚLJͲ >ĂLJĞƌĂĚĚŝƚŝŽŶĂůƌĞƐŽƵƌĐĞƐĨƌŽŵŚĞĂůƚŚ ďĂƐĞĚ͕ƌĞƐƵůƚƐͲďĂƐĞĚŽƌĂĐŽŵďŝŶĂƚŝŽŶͿ ŽƌŐĂŶŝnjĂƚŝŽŶƐͬǁĞůůŶĞƐƐǀĞŶĚŽƌƐ ƚŽĚƌŝǀĞŚĞĂůƚŚLJďĞŚĂǀŝŽƌƐĂŶĚͬŽƌ ŽƵƚĐŽŵĞƐtĞůůŶĞƐƐƉƌŽŐƌĂŵǁŝůůďĞĚĞƐŝŐŶĞĚǁŝƚŚK> ĂŶĚĐŽŵƉůŝĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŝŶŵŝŶĚ ŽŵƉůŝĂŶĐĞDĂƚƚĞƌƐ &ƌĞƋƵĞŶƚĨĞĚĞƌĂůĂŶĚƐƚĂƚĞůĞŐŝƐůĂƚŝǀĞ,/WƉƌŝǀĂĐLJŝŶƚĞƌƉƌĞƚĂƚŝŽŶ ƵƉĚĂƚĞƐ ZĞƉŽƌƚŝŶŐĂŶĚĚŝƐĐůŽƐƵƌĞŐƵŝĚĂŶĐĞ ŵƉůŽLJĞĞĂŶĚĞŵƉůŽLJĞƌ ůŝŐŝďŝůŝƚLJĚĞĨŝŶŝƚŝŽŶƐĂŶĚŶŽŶͲĚŝƐĐƌŝŵŝŶĂƚŝŽŶ ĐŽŵŵƵŶŝĐĂƚŝŽŶƐ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽŵƉůŝĂŶĐĞƵƉĚĂƚĞƐ džƚƌĂͲƚĞƌƌŝƚŽƌŝĂůƐƚĂƚĞŵŽŶŝƚŽƌŝŶŐ h^/,ĞĂůƚŚĂƌĞZĞĨŽƌŵĂŶĚZŝƐŬ ,ŽƐƚǁĞďŝŶĂƌƐĂŶĚƐĞŵŝŶĂƌƐŽŶĐŽŵƉůŝĂŶĐĞ DŽĚĞůŝŶŐdŽŽů ŝƐƐƵĞƐ ϯϲ WĂŐĞŽĨ h^/ŶŶƵĂů^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ WƌŽŐƌĂŵƐĞƌǀŝĐĞ ĐƚŝŽŶĚĞƚĂŝůƐ ŵĂŶĂŐĞŵĞŶƚ ŶŶƵĂůŽŵƉůŝĂŶĐĞZĞǀŝĞǁ ǀĂůƵĂƚŝŽŶŽĨ^WƐ͕^Ɛ͕ĂŶĚǁƌĂƉ ĚŽĐƵŵĞŶƚƐ͘ &ŽƌŵƐϱϱϬϬĨŽƌŚĞĂůƚŚĂŶĚǁĞůĨĂƌĞ ƉůĂŶƐǁŝůůďĞƉƌĞƉĂƌĞĚĨŽƌůŝĞŶƚ͛Ɛ ƐŝŐŶĂƚƵƌĞĂŶĚƚŚĞŶĨŝůĞĚďLJh^/ ,ZdĞĐŚŶŽůŽŐLJ ƐƐŝƐƚĂŶĐĞǁŝƚŚŵĂƚĐŚŝŶŐLJŽƵƌŶĞĞĚƐ,D͕ĞŶĞĨŝƚĚŵŝŶŝƐƚƌĂƚŝŽŶ͕WĂLJƌŽůů͕ ŽŶƐƵůƚŝŶŐ ǁŝƚŚƚŚĞĂƉƉƌŽƉƌŝĂƚĞƚĞĐŚŶŽůŽŐŝĐĂůƉƉůŝĐĂŶƚdƌĂĐŬŝŶŐ͕ĞƚĐ͙ ƐŽůƵƚŝŽŶƐ͘ ǀĂůƵĂƚĞƚŚĞŵĂƌŬĞƚĂŶĚĂƐƐŝƐƚŝŶƚŚĞ ƐĞůĞĐƚŝŽŶƉƌŽĐĞƐƐ sĞŶĚŽƌĂŶĚĐĂƌƌŝĞƌ WƌĞǀŝĞǁĂůůƐĞƌǀŝĐĞĐĂůůƐ͘^ĐƌĞĞŶŶĞǁƉƌŽĚƵĐƚŝŶƚƌŽĚƵĐƚŝŽŶƐ ƐĂůĞƐĂŶĚƐĞƌǀŝĐĞ DŽŶŝƚŽƌĐĂƌƌŝĞƌĨŝŶĂŶĐŝĂůƐƚĂŶĚŝŶŐ͘ƌƌĂŶŐĞƉƌĞƐĞŶƚĂƚŝŽŶƐƚŽĐůŝĞŶƚĚĞĐŝƐŝŽŶ ĐĂůůƐ ŵĂŬĞƌƐ͘ DŽŶŝƚŽƌĐĂƌƌŝĞƌŽǁŶĞƌƐŚŝƉĂŶĚ h^/ǁŝůůŝŶĨŽƌŵůŝĞŶƚŽĨĂŶLJĐŚĂŶŐĞŽĨ ĐŽƌƉŽƌĂƚĞĚŝƌĞĐƚŝŽŶ ĐŽŶƚƌŽůŽĨŝƚƐǀĞŶĚŽƌƐĂƐŝƚďĞĐŽŵĞƐĂǁĂƌĞŽĨ ƐĂŵĞ 'ůŽďĂůďĞŶĞĨŝƚƐ 'ůŽďĂůŶĞƚǁŽƌŬŵĂŶĂŐĞŵĞŶƚĞŶĐŚŵĂƌŬŝŶŐ ĞŶĞĨŝƚƐƐĞƐƐŵĞŶƚŶĂůLJƐŝƐŽĨĨŽƌĐŽƵŶƚƌLJƌĞƋƵŝƌĞŵĞŶƚƐ ĚĚŝƚŝŽŶĂů,ƵŵĂŶZĞƐŽƵƌĐĞ^ƵƉƉŽƌƚ͕ ;ĂĚĚŝƚŝŽŶĂůĨĞĞƐŵĂLJĂƉƉůLJͿ ,ƵŵĂŶƌĞƐŽƵƌĐĞŚŽƚůŝŶĞ ŽŶƐƵůƚŝŶŐŽŶĂŶLJĞŵƉůŽLJĞĞƌĞůĂƚĞĚŝƐƐƵĞ ŵƉůŽLJŵĞŶƚůĂǁĐŽŶƐƵůƚŝŶŐ ^ƚĂĨĨĞĚǁŝƚŚĞŵƉůŽLJŵĞŶƚůĂǁĂƚƚŽƌŶĞLJƐ WƌŽũĞĐƚŵĂŶĂŐĞŵĞŶƚ ,ĂŶĚŬƌĞǀŝĞǁƐ͕ĚĞǀĞůŽƉŵĞŶƚ͕ĂŶĚŵĂŝŶƚĞŶĂŶĐĞ :ŽďĚĞƐĐƌŝƉƚŝŽŶƐ ĨĨŝƌŵĂƚŝǀĞĐƚŝŽŶWůĂŶƐ ŶĚŵŽƌĞ͙ DĂŶĂŐĞŵĞŶƚƚƌĂŝŶŝŶŐ >ĞĂĚĞƌƐŚŝƉ ŝƐĐŝƉůŝŶĞĂŶĚĐŽĂĐŚŝŶŐ /ŶƚĞƌǀŝĞǁŝŶŐ ƵƐƚŽŵŝnjĂďůĞŽƉƚŝŽŶƐ ϰϲ WĂŐĞŽĨ dŚŝƌĚƉĂƌƚLJƐŽůƵƚŝŽŶƐ LJǁĂǀĞ LJǁĂǀĞŽĨĨĞƌƐĂŶŽŶůŝŶĞ,Z>ŝďƌĂƌLJǁŚŝĐŚŚĂƐƐƚĞƉͲďLJͲƐƚĞƉŐƵŝĚĞƐĨŽƌĨĞĚĞƌĂůĂŶĚƐƚĂƚĞůĂǁ ĐŽŵƉůŝĂŶĐĞ͕KZ͕&D>ĂŶĚƚŚŽƵƐĂŶĚƐŽĨŝŶǀĂůƵĂďůĞƚĞŵƉůĂƚĞƐ͕ĨŽƌŵƐ͕ŐƵŝĚĞƐ͕ĂŶĚŽŶůŝŶĞ ƚŽŽůƐ͘ &ŽƌŵϱϱϬϬĨŝůŝŶŐĨŽƌ h^/ŚĂƐĂƉƌĞĨĞƌƌĞĚĞdžƚĞƌŶĂůƌĞůĂƚŝŽŶƐŚŝƉǁŝƚŚtƌĂŶŐůĞ͕>>͘tƌĂŶŐůĞŽĨĨĞƌƐĂĨƵůůƐƚĂĨĨŽĨ ŐƌŽƵƉƐǁŝƚŚϭϬϬн ĞŵƉůŽLJĞĞďĞŶĞĨŝƚĐŽŶƐƵůƚĂŶƚƐǁŚŽŚĂǀĞŽǀĞƌϱϱLJĞĂƌƐŽĨĐŽŵďŝŶĞĚĞdžƉĞƌŝĞŶĐĞĂŶĚŝŶĚƵƐƚƌLJ ƉĂƌƚŝĐŝƉĂŶƚƐ ŬŶŽǁůĞĚŐĞ͘ dŚŝƌĚƉĂƌƚLJƐŽůƵƚŝŽŶƐʹŵƉůŽLJĞĞďĞŶĞĨŝƚƐĂĚŵŝŶŝƐƚƌĂƚŝǀĞĂŶĚĚĂƚĂŵĂŶĂŐĞŵĞŶƚƐŽůƵƚŝŽŶƐ ;^ĞƌǀŝĐĞƐƌĞƋƵŝƌĞĂŶĂĚĚŝƚŝŽŶĂůĨĞĞ͘WůĞĂƐĞĐŽŶƐƵůƚLJŽƵƌh^/ƚĞĂŵĨŽƌĚĞƚĂŝůƐ͘Ϳ ,^ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ h^/ǁŽƌŬƐǁŝƚŚŽƵƌĐůŝĞŶƚƐƚŽŝĚĞŶƚŝĨLJƚŚŝƌĚͲƉĂƌƚLJƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐǁŚŽƉƌŽǀŝĚĞ,^ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶƐĞƌǀŝĐĞƐ͘dŚŝƐŝƐĂŵŽƌĞĐŽƐƚͲĞĨĨĞĐƚŝǀĞǁĂLJĨŽƌŵŽƐƚŽĨŽƵƌĐůŝĞŶƚƐƚŽǁŽƌŬ ǁŝƚŚƋƵĂůŝĨŝĞĚ,^ĂĚŵŝŶŝƐƚƌĂƚŝŽŶƐƉĞĐŝĂůŝƐƚƐ͕ĂƐƚŚĂƚŝƐƚŚĞŝƌĐŽƌĞƉƌĂĐƚŝĐĞ͘/ƚĂůůŽǁƐh^/ƚŽ ďĞƐƚƐĞƌǀĞƚŚĞŶĞĞĚƐŽĨŽƵƌĐůŝĞŶƚƐĂƐƚŚĞƌĞŝƐŶŽŝŶŚĞƌĞŶƚĐŽŶĨůŝĐƚŽĨŝŶƚĞƌĞƐƚŝŶ ĚĞƚĞƌŵŝŶŝŶŐǁŚŝĐŚƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƚŽƐĞůĞĐƚ͘ tĞǁŽƌŬǁŝƚŚĐůŝĞŶƚƐƚŽĚĞƚĞƌŵŝŶĞƚŚĞďĞƐƚƐŽůƵƚŝŽŶƚŽŵĞĞƚLJŽƵƌ,^ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ŶĞĞĚƐ͘ KZĂĚŵŝŶŝƐƚƌĂƚŝŽŶ h^/ǁŽƌŬƐǁŝƚŚŽƵƌĐůŝĞŶƚƐƚŽŝĚĞŶƚŝĨLJƚŚŝƌĚƉĂƌƚLJƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐǁŚŽƉƌŽǀŝĚĞKZ ĚŵŝŶŝƐƚƌĂƚŝŽŶƐĞƌǀŝĐĞƐ͘dŚŝƐŝƐĂŵŽƌĞĐŽƐƚͲĞĨĨĞĐƚŝǀĞǁĂLJĨŽƌŵŽƐƚŽĨŽƵƌĐůŝĞŶƚƐƚŽǁŽƌŬ ǁŝƚŚƋƵĂůŝĨŝĞĚKZĂĚŵŝŶŝƐƚƌĂƚŝŽŶƐƉĞĐŝĂůŝƐƚƐ͕ĂƐƚŚĂƚŝƐƚŚĞŝƌĐŽƌĞƉƌĂĐƚŝĐĞ͘KƵƌ ŵƉůŽLJĞĞĞŶĞĨŝƚƐŽŵƉůŝĂŶĐĞWƌĂĐƚŝĐĞŚĂƐƉƌĞƉĂƌĞĚĂǀĂƌŝĞƚLJŽĨƌĞůĂƚĞĚŵĂƚĞƌŝĂůƐĂŶĚ ŚĂƐƐŝŐŶŝĨŝĐĂŶƚĞdžƉĞƌŝĞŶĐĞŝŶĂƐƐŝƐƚŝŶŐĐůŝĞŶƚƐ;ŝŶƚŚĞŝƌĐĂƉĂĐŝƚLJĂƐƐƉŽŶƐŽƌƐŽĨŐƌŽƵƉŚĞĂůƚŚ ƉůĂŶƐͿǁŝƚŚŵĞĞƚŝŶŐKZĂĚŵŝŶŝƐƚƌĂƚŝŽŶƌĞƋƵŝƌĞŵĞŶƚƐ͘ dŚŝƌĚƉĂƌƚLJƐŽůƵƚŝŽŶƐʹKŶůŝŶĞĞŶƌŽůůŵĞŶƚƐŽůƵƚŝŽŶƐ ;^ĞƌǀŝĐĞƐŵĂLJƌĞƋƵŝƌĞĂŶĂĚĚŝƚŝŽŶĂůĨĞĞ͘WůĞĂƐĞĐŽŶƐƵůƚLJŽƵƌh^/ƚĞĂŵĨŽƌĚĞƚĂŝůƐ͘Ϳ KŶůŝŶĞďĞŶĞĨŝƚƐ h^/ŚĂƐŶĞŐŽƚŝĂƚĞĚƉƌŝĐŝŶŐǁŝƚŚƐĞǀĞƌĂůŽŶůŝŶĞĞŶƌŽůůŵĞŶƚƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐ͕ŵĂŶLJŽĨ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚ ǁŚŽŵĂůƐŽƉƌŽǀŝĚĞŶŽŶͲĞŶƌŽůůŵĞŶƚĞŵƉůŽLJĞĞǁĞďƐŝƚĞƉŽƌƚĂůƐ͘ ĞŶƌŽůůŵĞŶƚ KŶůŝŶĞĞŶƌŽůůŵĞŶƚƵƚŝůŝnjĞƐĂŶĞĂƐLJͲƚŽͲƵƐĞǁĞďͲďĂƐĞĚƐLJƐƚĞŵǁŝƚŚĚŝƌĞĐƚĨĞĞĚƐƚŽƚŚĞ ĐĂƌƌŝĞƌƐ͘/ŶĂĚĚŝƚŝŽŶƚŽĞůŝŵŝŶĂƚŝŶŐƚŚĞŚĂƐƐůĞŽĨƉĂƉĞƌĞŶƌŽůůŵĞŶƚ͕ŽŶůŝŶĞĞŶƌŽůůŵĞŶƚĐĂŶ ŚĞůƉĂĚĚƌĞƐƐŶŽƚŽŶůLJŝŶŝƚŝĂůĂŶĚĂŶŶƵĂůĞŶƌŽůůŵĞŶƚ͕ďƵƚĂůƐŽůŝĨĞĞǀĞŶƚĞŶƌŽůůŵĞŶƚĂƐǁĞůů͘ KŶůŝŶĞĞŶƌŽůůŵĞŶƚŐŝǀĞƐĐůŝĞŶƚƐƚŚĞĂďŝůŝƚLJƚŽƚƌĂĐŬƉĂƌƚŝĐŝƉĂŶƚĞŶƌŽůůŵĞŶƚďĂƐĞĚŽŶ ƐĞǀĞƌĂůĐƌŝƚĞƌŝĂĂŶĚƚŽƌƵŶǀĂƌŝŽƵƐƌĞƉŽƌƚƐ͘ dŽƚĂůsĂůƵĞ^ƚĂƚĞŵĞŶƚƐĞŶĞĨŝƚ^ƚĂƚĞŵĞŶƚƐ;ƐŽŵĞƚŝŵĞƐƌĞĨĞƌƌĞĚƚŽĂƐ͞dŽƚĂůsĂůƵĞ^ƚĂƚĞŵĞŶƚƐ͟Žƌ͞dŽƚĂů ZĞǁĂƌĚƐ^ƚĂƚĞŵĞŶƚƐ͟ͿĂƌĞĞĨĨĞĐƚŝǀĞĂŶĚŝŵƉŽƌƚĂŶƚĐŽŵŵƵŶŝĐĂƚŝŽŶƚŽŽůƐƚŚĂƚĞĚƵĐĂƚĞ ;dŚŝƌĚƉĂƌƚLJͿ ĞŵƉůŽLJĞĞƐĂďŽƵƚƚŚĞƚŽƚĂůǀĂůƵĞŽĨƚŚĞŝƌĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚďĞŶĞĨŝƚƐƉĂĐŬĂŐĞ͘ tĞǁŽƌŬǁŝƚŚĐƵƐƚŽŵĞƌƐƚŽĚĞƚĞƌŵŝŶĞƚŚĞďĞƐƚƐŽůƵƚŝŽŶƚŽŵĞĞƚLJŽƵƌƚŽƚĂůĐŽŵƉĞŶƐĂƚŝŽŶ ƐƚĂƚĞŵĞŶƚŶĞĞĚƐ͘ ϱϲ WĂŐĞŽĨ džĐůƵƐŝǀĞŽƐƚŽŶƚƌŽůWƌŽŐƌĂŵʹ/ŶĐƌĞĂƐĞĞŵƉůŽLJĞĞƐĂƚŝƐĨĂĐƚŝŽŶĂŶĚƌĞĚƵĐĞŚĞĂůƚŚƉůĂŶĐŽƐƚƐ͕;ĚĞůŝǀĞƌĞĚ ƚŚƌŽƵŐŚĂƚŚŝƌĚƉĂƌƚLJͿ͘ E/,ĞĂůƚŚĐĂƌĞ h^/ŚĂƐƉĂƌƚŶĞƌĞĚǁŝƚŚE/,ĞĂůƚŚĐĂƌĞƚŽĚĞůŝǀĞƌƉƌŝŵĂƌLJĐĂƌĞƐĞƌǀŝĐĞƐƚŽŵĞŵďĞƌƐĂƚ ƚŚĞŝƌŚŽŵĞ͕ŽĨĨŝĐĞŽƌǀŝƌƚƵĂůůLJ͘ xŶŶƵĂůWŚLJƐŝĐĂůƐ x ZŽƵƚŝŶĞĐĂƌĞŶĞĞĚƐ x>ĂďƐĂŶĚŝŵĂŐŝŶŐ x ϭϬϬнĐƵƚĞDĞĚŝĐĂƚŝŽŶƐΘϰϬϬнŚƌŽŶŝĐDĞĚŝĐĂƚŝŽŶƐ x DĞŶƚĂůŚĞĂůƚŚƚŚĞƌĂƉLJ x WŚLJƐŝĐĂůƚŚĞƌĂƉLJ WƌŽdžŝŵĂů,ĞĂůƚŚ h^/ŚĂƐƉĂƌƚŶĞƌĞĚǁŝƚŚWƌŽdžŝŵĂů,ĞĂůƚŚƚŽŚĞůƉŵĞŵďĞƌƐĨŝŶĚƚŚĞŚŝŐŚĞƐƚƋƵĂůŝƚLJĂŶĚ ŵŽƐƚĞĐŽŶŽŵŝĐĂůŵĞĚŝĐĂůƉƌŽǀŝĚĞƌƐ͘ x&ŽĐƵƐŽŶŚŝŐŚĐŽƐƚƐĐůĂŝŵƐ͕;ŵƵƐĐƵůŽƐŬĞůĞƚĂů͕ĐĂŶĐĞƌ͕ƉƌĞŐŶĂŶĐŝĞƐ͕ƐƉĞĐŝĂůƚLJ ŵĞĚŝĐĂƚŝŽŶƐ͕ĐĂŶĐĞƌ͕ĞƚĐ͘͘͘͘Ϳ x dŚĞƌĞĂƌĞƚLJƉŝĐĂůůLJϭϱĐůĂŝŵƐƉĞƌϭϬϬĞŵƉůŽLJĞĞƐƚŚĂƚĐŽƵůĚďĞƌĞĚŝƌĞĐƚĞĚƉĞƌ LJĞĂƌǁŝƚŚĂŶĂǀĞƌĂŐĞƐĂǀŝŶŐƐŽĨΨϭϬ͕ϬϬϬƉĞƌĞǀĞŶƚ͘ ϲϲ WĂŐĞŽĨ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³7RRJRRG %DUQ´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Ƭ ȋȌ ǤʹͺͲ ȋ Ȍ ^ĞƉƚĞŵďĞƌϮϰ͕ϮϬϮϰ ,,1752'8&7,21 7KH&LW\RI5RFKHVWHU &LW\ LVVHHNLQJWKHVHUYLFHVRID&RQVWUXFWLRQ0DQDJHUDW5LVN &0$5 IRUWKH5RFKHVWHU6SRUWVDQG5HFUHDWLRQ&RPSOH[ 565& 3URMHFW1R-OXGHGLQ6HFWLRQ9 6WHS3UHGHVLJQ6HUYLFHV 3URMHFW&RVW(VWLPDWLQJDQG6FKHGXOH6XSSRUW 7LPHOLQHLV2FWREHU±'HFHPEHU x $WWHQGSURMHFWGHVLJQPHHWLQJV x %HDUHVRXUFHWRWKHSURMHFWWHDPIRUFRVWHVWLPDWLQJGXULQJSURJUDPPLQJDQGHYDOXDWLRQ x SURFHVV 3URYLGHFRVWLQSXWWRWKH$(WHDPDQG2ZQHUGXULQJWKHLQLWLDOSURJUDPPLQJSKDVHDQGVXEPLW x DZHOOYHWWHGFRVWHVWLPDWHDWWKHFRQFOXVLRQRISURJUDPPLQJUHYLHZFRVWHVWLPDWHVZLWKWKH $(DQGSURMHFWWHDP:RUNZLWKWKH$(WHDPDQG2ZQHUWRSURYLGHYDOXHHQJLQHHULQJ VHUYLFHVDVQHFHVVDU\ 3URYLGHDPLOHVWRQHFRQVWUXFWLRQVFKHGXOH x 6WHS3UH&RQVWUXFWLRQ6HUYLFHV -DQXDU\±-DQXDU\ x 3URYLGHFRVWLQSXWWRWKH'HVLJQ7HDPGXULQJWKH6'''DQG&'SKDVHVRIWKHGHVLJQ x 6XEPLWDZHOOYHWWHGFRVWHVWLPDWHDWWKHFRQFOXVLRQRIWKH6'SKDVHDQGWKH''SKDVH UHYLHZFRVWHVWLPDWHVZLWKWKH'HVLJQ7HDPDQGSURMHFWWHDP:RUNZLWKWKH'HVLJQ7HDP DQG2ZQHUWRSURYLGHYDOXHHQJLQHHULQJVHUYLFHVDVQHFHVVDU\ &0$5IRUHVWLPDWHVRIWKH&RVWRIWKH:RUNSHU([KLELW&FRPPHQWVLQDQG x 3URYLGHD*03SDFNDJHWRLQFOXGHOLVWLQJRI''GRFXPHQWVDFULWLFDOSDWKVFKHGXOHDQGD x ZULWWHQQDUUDWLYHZKLFKLQFOXGHVFODULILFDWLRQVH[FOXVLRQVDOORZDQFHVDQGDSSOLFDEOHXQLW SULFLQJDQGSHU([KLELW&RIWKHFRQWUDFW 2ZQHUWRUHYLHZ&0$5¶V''*03HVWLPDWHV,IUHYLVLRQVWRWKH&'GRFXPHQWVDUHUHTXLUHGWR x FRPSO\ZLWKWKHEXGJHW&0$5DQG'HVLJQ7HDPZLOOPDNHUHTXLUHGUHYLVLRQVXQWLOWKH&' GRFXPHQWVDUHLQFRQIRUPLW\ZLWKWKH2ZQHU¶VEXGJHW 6WHS&RQVWUXFWLRQ6HUYLFHV $XJXVW±$XJXVWFHSWXDOSULFLQJDQG SUHFRQVWUXFWLRQGXULQJ6WHS DQGFRQVWUXFWLRQVHUYLFHVDQGGD\WRGD\FRQVWUXFWLRQ PDQDJHPHQWGXULQJ6WHS 7KH&LW\PD\DOVREHXWLOL]HWKHVHUYLFHVRIDQ2ZQHU¶V5HSUHVHQWDWLYHWRSURYLGHDGGLWLRQDO H[SHUWLVHDQGVXSSRUWIRU&LW\VWDII $GHVLJQ5)3KDVEHHQLVVXHGDQGWKHVHOHFWLRQRIWKH'HVLJQ7HDPZLOOEHPDGHLQ2FWREHU 7KH&0$5ZLOOZRUNYHU\FORVHO\ZLWKWKHVXFFHVVIXOGHVLJQILUPWRSURYLGHLQSXWLQWR FRQVWUXFWDELOLW\YDOXHHQJLQHHULQJDQGFRVWHVWLPDWLQJGXULQJWKHGHVLJQSURFHVV 7KH&0$5ZLOOEHH[SHFWHGWRFROODERUDWHZLWKWKH2ZQHU2ZQHU¶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¶V5HSUHVHQWDWLYHIRUSD\PHQW &0$5VKDOOSUHSDUHDQGVXEPLWDOOFHUWLILHGSD\UROOGRFXPHQWDWLRQIRUWKHSUHYLRXV PRQWKZLWKWKHFXUUHQWPRQWK¶VDSSOLFDWLRQIRUSD\PHQW 7KH:%(0%(SURJUHVVUHSRUWVKRXOGEHVXEPLWWHGPRQWKO\ZLWKHDFKDSSOLFDWLRQIRU SD\PHQWDORQJZLWKWKHXSWRGDWHVWDWXVRIWKHZRUNIRUFHSDUWLFLSDWLRQSHUFHQWDJHV 7KH&05VKDOOXWLOL]HWKH2ZQHU¶VLGHQWLILHGWUDFNLQJSURFHGXUHVDQGVRIWZDUHIRU FHUWLILHGSD\UROODQGXWLOL]DWLRQWUDFNLQJ 5HYLHZDQGFHUWLILFDWLRQRIDOOVXEFRQWUDFWRUFKDQJHRUGHUUHTXHVWVSULRUWRVXEPLWWDOWR WKH2ZQHU¶V5HSUHVHQWDWLYHIRUUHYLHZ &0$5DQGSHUWLQHQWVXEFRQWUDFWRUVWRZRUNZLWKWKH2ZQHU¶VFRPPLVVLRQLQJDJHQW WRFRPSOHWHWKHFRPPLVVLRQLQJIRUWKHSURMHFW7KH2ZQHU¶VFRPPLVVLRQLQJSODQZLOO EHFRPPXQLFDWHGWRWKH&0$5SULRUWRHVWDEOLVKPHQWRIWKH*03 &RPSOHWHD&RQVWUXFWLRQ0DQDJHUSUHSXQFKOLVWZLWKDOOWUDGHVLQDGYDQFHRI WKH2ZQHU¶VSXQFKOLVWSURFHVV 'HYHORSDQGSURYLGHWLPHO\FRPSOHWLRQRI2ZQHUSXQFKOLVWLWHPVWRIDFLOLWDWH ILQDOFRPSOHWLRQRIWKHSURMHFW 'HVLJQVHUYLFHV ,QGHSHQGHQWWHVWLQJDQGLQVSHFWLRQ &RPPLVVLRQLQJDJHQW )L[WXUHVIXUQLVKLQJVDQGHTXLSPHQW %XLOGLQJIXUQLWXUH&RQVWUXFWLRQ0DQDJHUWRVFKHGXOHWKHZRUNDQGPDNHFHUWDLQWKH SURMHFWLVUHDG\WRUHFHLYHWKHSURGXFW 9,,352-(&76&+('8/( 7KHSURMHFWVFKHGXOHZLOOEHGHYHORSHGLQFROODERUDWLRQZLWKWKH'HVLJQ7HDPDQGWKH&0$5$ SUHOLPLQDU\VFKHGXOHKDVEHHQLGHQWLILHGIRUUHIHUHQFHWRVKRZWKHJHQHUDOVHTXHQFHRIWKH SURMHFW7KHVFKHGXOHIRUWKH'HVLJQDQG&0$5SURFHVVDQGWKHSUHOLPLQDU\PLOHVWRQHGDWHV DUHVKRZQEHORZ 'LVWULEXWLRQRI'HVLJQ5)3±$XJXVWRMHFW LIUHTXHVWHG LY3URYLGHDOHWWHUIURPWKHUHVSRQGHQW¶VLQVXUDQFHFRPSDQ\VWDWLQJWKDWWKH UHVSRQGHQWZLOOEHDEOHWRSURYLGHJHQHUDOOLDELOLW\LQVXUDQFHIRUWKH SURMHFWWKDWPHHWVRUH[FHHGVWKH&LW\RI5RFKHVWHU¶VLQVXUDQFH ([KLELW% UHTXLUHPHQWVOLVWHGLQ F5HOHYDQW&RPSDQ\([SHULHQFH L/LVWSURMHFWVPRVWUHOHYDQWWRWKLVSURMHFW LL5HOHYDQWSURMHFWVVKRXOGLQFOXGH\HDUFRPSOHWHGVTXDUHIRRWDJHILQDO FRQVWUXFWLRQYDOXHDQGDFOLHQWUHIHUHQFH G.H\3HUVRQQHO L2UJDQL]DWLRQDO&KDUW±,QFOXGHDOONH\SHUVRQQHO LL3UHFRQVWUXFWLRQ3KDVH±,QGLFDWHWKHWHDPOHDGHUIRUGD\WRGD\ FRPPXQLFDWLRQ SURMHFWLQYROYHPHQW LLL&RQVWUXFWLRQ3KDVH±,QGLFDWHWKHWHDPOHDGHUIRUGD\WRGD\ FRPPXQLFDWLRQ SURMHFWLQYROYHPHQW LY&RQVWUXFWLRQ3KDVH±,QGLFDWHWKHWHDPOHDGHUIRUILHOGDGPLQLVWUDWLRQDQG VLWHSUHVHQFH Y5HOHYDQWH[SHULHQFHIRUOHDGSHUVRQQHOGLUHFWO\LQYROYHGZLWKWKHSURMHFW 3URYLGHUHVXPHVIRUNH\SHUVRQQHO /LVWSURMHFWVPRVWUHOHYDQWWRWKLVSURMHFWFRPSOHWHGE\\RXU VHOHFWHGSURMHFWOHDGSHUVRQQHO,QFOXGH\HDUFRPSOHWHGVTXDUH IRRWDJHILQDOFRQVWUXFWLRQYDOXHDQGFOLHQWUHIHUHQFH YL:ULWWHQSHUPLVVLRQVKDOOEHUHTXLUHGWRFKDQJHSURMHFWOHDGSHUVRQQHO DIWHUWKHFRQWUDFWDZDUGDVSDUWRIWKH&RQWUDFW$JUHHPHQW H3URMHFW$SSURDFK L3URYLGH\RXUILUP¶VDSSURDFKIRUSUHFRQVWUXFWLRQVHUYLFHV'LVFXVV VSHFLILFDOO\\RXUDSSURDFKWRWKH*XDUDQWHHG0D[LPXP3ULFH *03 SURFHVVIRUWKLVSURMHFW LL3URYLGH\RXUILUP¶VDSSURDFKWRFRQVWUXFWLRQSKDVHVHUYLFHV'LVFXVV \RXUILUP¶VDELOLW\DQGH[SHULHQFHPDQDJLQJDVSRUWVDQGUHFUHDWLRQ FRQVWUXFWLRQSURMHFW LLL3URYLGH\RXUDSSURDFKWRVXFFHVVIXOO\HVWLPDWLQJPDQDJLQJDQG LPSOHPHQWLQJWKHJHRWKHUPDODQGPHFKDQLFDOHOHFWULFDODVSHFWVRIWKLV SURMHFW LY3URYLGHWKHWRSULVNVIRUWKLVSURMHFW5LVNVVKRXOGGHPRQVWUDWHWKH &05¶VOHYHORISURMHFWXQGHUVWDQGLQJDQGEHVSHFLILFWRWKLVSURMHFW Y3URYLGHDOLVWRIUHTXLUHPHQWVH[SHFWDWLRQVIRUWKH&LW\RI5RFKHVWHUWR PDNHWKLVFRQVWUXFWLRQSURFHVVVXFFHVVIXODQGPHHWWKHREMHFWLYHVRIWKLV 5)3,WHPVVKRXOGEHOLVWHGZLWKDQWLFLSDWHGGXHGDWHV I([KLELW&&RPPHQWV5HGOLQHV J6LWH&RPPHQWV %5HVSRQVH6XEPLWWDO D+DUG&RSLHV ±'HOLYHUWR WK &LW\RI5RFKHVWHU6WUHHW6( 5RFKHVWHU01$WWQ6FRW5DPVH\ E(OHFWURQLFFRSLHV±'HOLYHUWR 6FRW5DPVH\±VUDPVH\#URFKHVWHUPQJRY ,;6(/(&7,21352&(66 7KH&05ZLOOEHVHOHFWHGIRUWKLVSURMHFWEDVHGXSRQDPXOWLSOHVWHSSURFHVVDGPLQLVWHUHGE\D VHOHFWLRQFRPPLWWHHDSSRLQWHGE\WKH&LW\RI5RFKHVWHU 5HTXHVWIRU4XDOLILFDWLRQ 5)4 ±7KH5)4ZLOOEHDTXDOLILFDWLRQVEDVHGSURFHVVWKDWZLOOEH XWLOL]HGWRGHWHUPLQHDVKRUWOLVWRIUHFLSLHQWVWRUHFHLYHDIXWXUH5HTXHVWIRU3URSRVDO 5)3 7KHHYDOXDWLRQRIWKH5)4ZLOOEHPDGHEDVHGXSRQILQDQFLDOVWDQGLQJFRPSDQ\H[SHULHQFH SURSRVHGWHDPH[SHULHQFHDQGVDIHW\UHFRUG 5HTXHVWIRU3URSRVDO 5)3 ±7KH5)3ZLOOLQYLWHVKRUWOLVWHGILUPVWRVXEPLWDSURMHFW VFKHGXOHVWDIILQJFRVWVJHQHUDOFRQGLWLRQVFRVWVSUHFRQVWUXFWLRQIHHVDQGFRQVWUXFWLRQIHHV ,QWHUYLHZV ±8SRQFRPSOHWLRQRIWKH5)3UHVSRQVHVKRUWOLVWHGILUPVZLOOEHLQWHUYLHZHGE\WKH VHOHFWLRQFRPPLWWHHWREHFRPHIDPLOLDUZLWKNH\SHUVRQQHOXQGHUVWDQGWKHSURMHFWDSSURDFK FODULI\FRVWSURSRVDOVDQGGHWHUPLQHHDFKILUP¶VDELOLW\WRPHHWWKHSURMHFWJRDOVDQGREMHFWLYHV ;6(/(&7,21&5,7(5,$IRU5)3 $FRPPLWWHHVHOHFWHGE\WKH&LW\ZLOOEHUHVSRQVLEOHIRUHYDOXDWLQJWKHSURSRVDOVZKLFKWKH\ EHOLHYHZLOOUHVXOWLQWKHPRVWTXDOLILHGSURMHFWWHDPWRSURYLGHWKHSURIHVVLRQDO&05VHUYLFHVIRU WKLVSURMHFW7KHVHOHFWLRQFULWHULDZLOOEHEDVHGXSRQWKHIROORZLQJ &RQVWUXFWLRQ0DQDJHPHQWDW5LVN([SHULHQFH 5HVSRQGHQW¶VDELOLW\WRGHPRQVWUDWHH[SHULHQFHDQGVXFFHVVIXOFRPSOHWLRQRI&RQVWUXFWLRQ 0DQDJHPHQWDW5LVNSURMHFWV ([SHUWLVHDQG([SHULHQFHRI.H\3HUVRQQHO 5HVSRQGHQW¶VDELOLW\WRGHPRQVWUDWHWKHH[SHUWLVHDQGH[SHULHQFHRISHUVRQQHOWKDWDUH VSHFLILFDOO\SURSRVHGDQGLQYROYHGIRUWKLVSURMHFW6SHFLDOHPSKDVLVWREHSURYLGHGIRUWKHGD\ WRGD\&05FRQWDFWVIRUWKH&LW\RI5RFKHVWHUDQGQRWVHQLRUOHYHOPDUNHWLQJVSHFLDOLVWV 3URMHFW$SSURDFK 7KHUHVSRQGHQW¶VDELOLW\WRFOHDUO\FRPPXQLFDWHWKHPHWKRGRORJ\ZRUNSODQ*03SURFHVVDQG DELOLW\WRFROODERUDWHZLWKDOOSURMHFWWHDPPHPEHUVWRPHHWWKHSURMHFWREMHFWLYHV 5HQHZDEOH(QHUJ\DQG0HFKDQLFDO(OHFWULFDO 7KHJHRWKHUPDOUHQHZDEOHHQHUJ\DQGPHFKDQLFDOHOHFWULFDOV\VWHPVZLOOEHWKHRQHRIWKH PRVWWHFKQLFDODVSHFWVWRWKLVSURMHFW7KHUHVSRQGHQW¶VDELOLW\WRPDQDJHSUHFRQVWUXFWLRQFRVW HVWLPDWLQJSURFXUHPHQWRIJHRWKHUPDODQGRYHUDOOV\VWHPVLPSOHPHQWDWLRQFKHFNRXW 3URMHFW6FKHGXOH 7KHUHVSRQGHQW¶VDELOLW\WRGHPRQVWUDWHWKHWHFKQLFDOH[SHUWLVHSODQQLQJPHWKRGRORJ\DQG H[HFXWLRQUHTXLUHGWRPHHWWKHVFKHGXOHUHTXLUHPHQWV 3URMHFW)HH 7KHUHVSRQGHQWVRYHUDOOIHHFRPSHWLWLYHQHVVIRUWKHSURSRVHGVHUYLFHVRIIHUHGWRWKH&LW\RI 5RFKHVWHUDSSURDFKWRJHQHUDOFRQGLWLRQVWUDQVSDUHQF\RIIHHVDQGFRQWLQJHQF\VWUDWHJ\ 7RWDO3RLQWV$YDLODEOH ;,)8785(5)3,17(59,(:)250$7 $,QWHUYLHZ2XWOLQH D,QWHUYLHZVZLOOEHFRQGXFWHGZLWKWKHVKRUWOLVWHGILUPVRQO\7KHIRUPDWIRU WKHLQWHUYLHZZLOOEHDVOLVWHGEHORZ E0LQXWH,QWHUYLHZ 0LQXWHVRI3UHVHQWDWLRQ±0LQXWHVRI4 $ ([SHULHQFH 4XDOLILFDWLRQV±0LQXWHV 3URMHFW$SSURDFK±0LQXWHV *033URFHVVDQG&RQWLQJHQF\±0LQXWHV *HRWKHUPDO0HFKDQLFDO6\VWHP0LQXWHV &ULWLFDO3URMHFW&RQVLGHUDWLRQV±0LQXWHV 4XHVWLRQ $QVZHU±0LQXWHV ;,,&2175$&7$*5((017)250 %)RUPRI&RQWUDFW L7KHFRQWUDFWIRUPZLOOEH$,$'RFXPHQW$6WDQGDUG)RUPRI $JUHHPHQWEHWZHHQ2ZQHUDQG&RQVWUXFWLRQ0DQDJHUDQGUHODWHG $ $Q\FKDQJHVRUFODULILFDWLRQVWRWKLV5)4ZLOOEHLVVXHGLQZULWLQJYLDZULWWHQ$GGHQGXPRQO\ $Q\TXHVWLRQVUHJDUGLQJWKLVSURSRVDOFDQEHGLUHFWHGWRWKHIROORZLQJ 6FRW5DPVH\VUDPVH\#URFKHVWHUPQJRYUHVSRQVHKDV D EHHQVXEPLWWHGZLWKRXWFROOXVLRQZLWKDQGZLWKRXWDQ\DJUHHPHQW XQGHUVWDQGLQJRUSODQQHGFRPPRQFRXUVHRIDFWLRQZLWKDQ\RWKHU 5HVSRQGHURIPDWHULDOVVXSSOLHVHTXLSPHQWRUVHUYLFHVGHVFULEHGLQWKH 5HTXHVWIRU4XDOLILFDWLRQRU3URSRVDOGHVLJQHGWROLPLWIDLUDQGRSHQ FRPSHWLWLRQ ;,9,&/26,1* 7KH&LW\RI5RFKHVWHUZRXOGOLNHWRWKDQN\RXLQDGYDQFHIRU\RXULQWHUHVWLQWKLVSURMHFWDVZH UHFRJQL]HWKHWLPHDQGHIIRUWLQYROYHGZLWKSUHSDULQJWKLVLQIRUPDWLRQDQGSXUVXLQJWKHSURMHFW :HORRNIRUZDUGWRUHFHLYLQJ\RXUILUP¶VTXDOLILFDWLRQVDQGOHDUQLQJPRUHDERXW\RXUUHVSHFWLYH ILUP¶VDSSURDFKWRWKLVH[FLWLQJSURMHFW (QFORVXUHV ([KLELW$3RWHQWLDO6LWH/RFDWLRQV ([KLELW%±&LW\RI5RFKHVWHU,QVXUDQFH5HTXLUHPHQWV ([KLELW&±$ $ ([KLELW$ (QFORVXUHV ([KLELW$ ([KLELW% &LW\RI5RFKHVWHU¶VLQVXUDQFHUHTXLUHPHQWV ([KLELW& $6WDQGDUG)RUPRI$JUHHPHQWEHWZHHQ2ZQHUDQG&RQVWUXFWLRQ0DQDJHUDQGUHODWHG $ ([KLELW% /ŶƐƵƌĂŶĐĞ^ƉĞĐŝĨŝĐĂƚŝŽŶƐĨŽƌŝƚLJŽŶƚƌĂĐƚƐ ŽŶƚƌĂĐƚŽƌƐŚĂůůŶŽƚĐŽŵŵĞŶĐĞǁŽƌŬƵŶĚĞƌƚŚĞĐŽŶƚƌĂĐƚƵŶƚŝůŝƚŚĂƐŽďƚĂŝŶĞĚĂůůƚŚĞŝŶƐƵƌĂŶĐĞĚĞƐĐƌŝďĞĚďĞůŽǁ ĂŶĚƚŚĞŝƚLJŚĂƐĂƉƉƌŽǀĞĚƐƵĐŚŝŶƐƵƌĂŶĐĞ͘ ŽŶƚƌĂĐƚŽƌƐŚĂůůŵĂŝŶƚĂŝŶƐƵĐŚŝŶƐƵƌĂŶĐĞŝŶĨŽƌĐĞĂŶĚĞĨĨĞĐƚƚŚƌŽƵŐŚŽƵƚƚŚĞƚĞƌŵŽĨƚŚĞĐŽŶƚƌĂĐƚ͘ ŽŶƚƌĂĐƚŽƌŝƐƌĞƋƵŝƌĞĚƚŽŵĂŝŶƚĂŝŶĂŶĚĨƵƌŶŝƐŚƐĂƚŝƐĨĂĐƚŽƌLJĞǀŝĚĞŶĐĞŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐ͗ ϭ͘tŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶ/ŶƐƵƌĂŶĐĞ džĐĞƉƚĂƐƉƌŽǀŝĚĞĚďĞůŽǁ͕ŽŶƚƌĂĐƚŽƌŵƵƐƚƉƌŽǀŝĚĞtŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂ ƚŝŽŶŝŶƐƵƌĂŶĐĞĨŽƌĂůůŝƚƐĞŵƉůŽLJĞĞƐĂŶĚ͕ŝŶ ĐĂƐĞĂŶLJǁŽƌŬŝƐƐƵďĐŽŶƚƌĂĐƚĞĚ͕ŽŶƚƌĂĐƚŽƌǁŝůůƌĞƋƵŝƌĞƚŚĞƐƵďĐŽŶƚƌĂĐƚŽƌƚŽƉƌŽǀŝĚĞtŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶ ŝŶƐƵƌĂŶĐĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƐƚĂƚƵƚŽƌLJƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͕ŝŶĐůƵĚŝŶŐŽǀĞƌĂŐĞ͕ ŵŝŶŝŵƵŵ ŵƉůŽLJĞƌ͛Ɛ>ŝĂďŝůŝƚLJ͘/ŶƐƵƌĂŶĐĞůŝŵŝƚƐĂƌĞĂƐĨŽůůŽǁƐ͗ ΨϱϬϬ͕ϬϬϬʹŽĚŝůLJ/ŶũƵƌLJďLJŝƐĞĂƐĞƉĞƌĞŵƉůŽLJĞĞ ΨϱϬϬ͕ϬϬϬʹŽĚŝůLJ/ŶũƵƌLJďLJŝƐĞĂƐĞĂŐŐƌĞŐĂƚĞ ΨϱϬϬ͕ϬϬϬʹŽĚŝůLJ/ŶũƵƌLJďLJĐĐŝĚĞŶƚ /ĨDŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞϭϳϲ͘ϬϰϭĞdžĞŵƉƚƐŽŶƚƌĂĐƚŽƌĨƌŽŵtŽƌŬĞ ƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶŝŶƐƵƌĂŶĐĞŽƌŝĨƚŚĞŽŶƚƌĂĐƚŽƌŚĂƐ ŶŽĞŵƉůŽLJĞĞƐŝŶƚŚĞŝƚLJ͕ŽŶƚƌĂĐƚŽƌŵƵƐƚƉƌŽǀŝĚĞĂǁƌŝƚƚĞŶƐƚĂƚĞŵĞŶƚ͕ƐŝŐŶĞĚďLJĂŶĂƵƚŚŽƌŝnjĞĚƌĞƉƌĞƐĞŶƚĂƚŝǀĞ͕ ŝŶĚŝĐĂƚŝŶŐƚŚĞƋƵĂůŝĨLJŝŶŐĞdžĞŵƉƚŝŽŶƚŚĂƚĞdžĐůƵĚĞƐŽŶƚƌĂĐƚŽƌĨƌŽŵƚŚĞDŝŶŶĞƐŽƚĂtŽƌŬĞƌƐ͛ŽŵƉ ĞŶƐĂƚŝŽŶ ƌĞƋƵŝƌĞŵĞŶƚƐ͘ /ĨĚƵƌŝŶŐƚŚĞĐŽƵƌƐĞŽĨƚŚĞĐŽŶƚƌĂĐƚƚŚĞŽŶƚƌĂĐƚŽƌďĞĐŽŵĞƐĞůŝŐŝďůĞĨŽƌtŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶ͕ƚŚĞŽŶƚƌĂĐƚŽƌ ŵƵƐƚĐŽŵƉůLJǁŝƚŚƚŚĞtŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŚĞƌĞŝŶĂŶĚƉƌŽǀŝĚĞƚŚĞŝƚLJǁŝƚŚĂ ĐĞƌƚŝĨŝĐĂƚĞŽĨŝŶƐƵƌĂŶĐĞ͘ Ϯ͘ŽŵŵĞƌĐŝĂů'ĞŶĞƌĂů>ŝĂďŝůŝƚLJ/ŶƐƵƌĂŶĐĞ ŽŶƚƌĂĐƚŽƌŝƐƌĞƋƵŝƌĞĚƚŽŵĂŝŶƚĂŝŶŝŶƐƵƌĂŶĐĞƉƌŽƚĞĐƚŝŶŐŝƚĨƌŽŵĐůĂŝŵƐĨŽƌĚĂŵĂŐĞƐĨŽƌďŽĚŝůLJŝŶũƵƌLJ͕ŝŶĐůƵĚŝŶŐ ƐŝĐŬŶĞƐƐŽƌĚŝƐĞĂƐĞ͕ĚĞĂƚŚ͕ĂŶĚĨŽƌĐĂƌĞĂŶĚůŽƐƐŽĨƐĞƌǀŝĐĞƐĂƐǁĞůůĂƐĨƌŽŵĐůĂŝŵƐĨŽƌƉƌŽƉĞƌƚLJĚĂŵĂŐĞ͕ŝŶĐůƵĚŝŶŐ ůŽƐƐŽĨƵƐĞǁŚŝĐŚŵĂLJĂƌŝƐĞĨƌŽŵŽƉĞƌĂƚŝŽŶƐƵŶĚĞƌƚŚĞŽŶƚƌĂĐƚǁŚĞƚŚĞƌƚŚĞŽƉĞƌĂƚŝŽŶƐĂƌĞďLJƚŚĞŽŶƚƌĂĐƚŽƌŽƌ ďLJĂƐƵďĐŽŶƚƌĂĐƚŽƌŽƌďLJĂŶLJŽŶĞĚŝƌĞĐƚůLJŽƌŝŶĚŝƌĞĐƚůLJĞŵƉůŽLJĞĚďLJƚŚĞŽŶƚƌĂĐƚŽƌƵŶĚĞƌƚŚĞĐŽŶƚƌĂĐƚ͘/ŶƐƵƌĂŶĐĞ ŵŝŶŝŵƵŵ ůŝŵŝƚƐĂƌĞĂƐĨŽůůŽǁƐ͗ Ψϭ͕ϬϬϬ͕ϬϬϬʹƉĞƌŽĐĐƵƌƌĞŶĐĞ ΨϮ͕ϬϬϬ͕ϬϬϬʹĂŶŶƵĂůĂŐŐƌĞŐĂƚĞ ΨϮ͕ϬϬϬ͕ϬϬϬʹĂŶŶƵĂůĂŐŐƌĞŐĂƚĞʹWƌŽĚƵĐƚƐͬŽŵƉůĞƚĞĚKƉĞƌĂƚŝŽŶƐ dŚĞĨŽůůŽǁŝŶŐĐŽǀĞƌĂŐĞƐƐŚĂůůďĞŝŶĐůƵĚĞĚ͗ WƌĞŵŝƐĞƐĂŶĚKƉĞƌĂƚŝŽŶƐŽĚŝůLJ/ŶũƵƌLJĂŶĚWƌŽƉĞƌƚLJĂŵĂŐĞ WĞƌƐŽŶĂůĂŶĚĚǀĞƌƚŝƐŝŶŐ/ŶũƵƌLJ ůĂŶŬĞƚŽŶƚƌĂĐƚƵĂů>ŝĂďŝůŝƚLJ WƌŽĚƵĐƚƐĂŶĚŽŵƉůĞƚĞĚKƉĞƌĂƚŝŽŶƐ>ŝĂďŝůŝƚLJ ŝƚLJŵƵƐƚďĞŶĂŵĞĚĂƐĂŶĚĚŝƚŝŽŶĂů/ŶƐƵƌĞĚ͘ ϯ͘ŽŵŵĞƌĐŝĂůƵƚŽŵŽďŝůĞ>ŝĂďŝůŝƚLJ/ŶƐƵƌĂŶĐĞ ŽŶƚƌĂĐƚŽƌŝƐƌĞƋƵŝƌĞĚƚŽŵĂŝŶƚĂŝŶŝŶƐƵƌĂŶĐĞƉƌŽƚĞĐƚŝŶŐŝƚĨƌŽŵĐůĂŝŵƐĨŽƌĚĂŵĂŐĞƐĨŽƌďŽĚŝůLJŝŶũƵƌLJĂƐǁĞůůĂƐĨƌŽŵ ĐůĂŝŵƐĨŽƌƉƌŽƉĞƌƚLJĚĂŵĂŐĞƌĞƐƵůƚŝŶŐĨƌŽŵƚŚĞŽǁŶĞƌƐŚŝƉ͕ŽƉĞƌĂƚŝŽŶ͕ŵĂŝŶƚĞŶĂŶĐĞŽƌƵƐĞŽĨĂůůĂƵƚŽƐǁŚŝĐŚŵĂLJ ĂƌŝƐĞĨƌŽŵŽƉĞƌĂƚŝŽŶƐƵŶĚĞƌƚŚŝƐĐŽŶƚƌĂĐƚ͕ĂŶĚŝŶĐĂƐĞĂŶLJǁŽƌŬŝƐƐƵďĐŽŶƚƌĂĐƚĞĚƚŚĞĐŽŶƚƌĂĐƚŽƌǁŝůůƌĞƋƵŝƌĞƚŚĞ ŵŝŶŝŵƵŵ ƐƵďĐŽŶƚƌĂĐƚŽƌƚŽŵĂŝŶƚĂŝŶŽŵŵĞƌĐŝĂůƵƚŽŵŽďŝůĞ>ŝĂďŝůŝƚLJŝŶƐƵƌĂŶĐĞ͘/ŶƐƵƌĂŶĐĞůŝŵŝƚƐĂƌĞĂƐĨŽůůŽǁƐ͗ Ψϭ͕ϬϬϬ͕ϬϬϬʹƉĞƌŽĐĐƵƌƌĞŶĐĞŽŵďŝŶĞĚ^ŝŶŐůĞ>ŝŵŝƚĨŽƌŽĚŝůLJ/ŶũƵƌLJĂŶĚWƌŽƉĞƌƚLJ ĂŵĂŐĞ /ŶĂĚĚŝƚŝŽŶ͕ƚŚĞĨŽůůŽǁŝŶŐĐŽǀĞƌĂŐĞƐƐŚŽƵůĚďĞŝŶĐůƵĚĞĚ͗ KǁŶĞĚ͕,ŝƌĞĚ͕ĂŶĚEŽŶͲŽǁŶĞĚƵƚŽŵŽďŝůĞƐ͘ ϰ͘WƌŽĨĞƐƐŝŽŶĂůͬdĞĐŚŶŝĐĂů;ƌƌŽƌƐĂŶĚKŵŝƐƐŝŽŶƐͿ>ŝĂďŝůŝƚLJ/ŶƐƵƌĂŶĐĞ dŚŝƐƉŽůŝĐLJǁŝůůƉƌŽǀŝĚĞĐŽǀĞƌĂŐĞĨŽƌĂůůĐůĂŝŵƐƚŚĞĐŽŶƚƌĂĐƚŽƌŵĂLJďĞĐŽŵĞůĞŐĂůůLJŽďůŝŐĂƚĞĚƚŽƉĂLJƌĞƐƵůƚŝŶŐĨƌŽŵ ĂŶ LJĂĐƚƵĂůŽƌĂůůĞŐĞĚŶĞŐůŝŐĞŶƚĂĐƚ͕ĞƌƌŽƌ͕ŽƌŽŵŝƐƐŝŽŶƌĞůĂƚĞĚƚŽŽŶƚƌĂĐƚŽƌ͛ƐƉƌŽĨĞƐƐŝŽŶĂůƐĞƌǀŝĐĞƐƌĞƋƵŝƌĞĚƵŶĚĞƌ ƚŚĞĐŽŶƚƌĂĐƚ͘ ŵŝŶŝŵƵŵ ŽŶƚƌĂĐƚŽƌŝƐƌĞƋƵŝƌĞĚƚŽĐĂƌƌLJƚŚĞĨŽůůŽǁŝŶŐůŝŵŝƚƐ͗ Ψϭ͕ϬϬϬ͕ϬϬϬʹƉĞƌĐůĂŝŵŽƌĞǀĞŶƚ ΨϮ͕ϬϬϬ͕ϬϬϬʹĂŶŶƵĂůĂŐŐƌĞŐĂƚĞ ŶLJĚĞĚƵĐƚŝďůĞǁŝůůďĞƚŚĞƐŽůĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƚŚĞŽŶƚƌĂĐƚŽƌĂŶĚŵĂLJŶŽƚĞdžĐĞĞĚΨϱϬ͕ϬϬϬǁŝƚŚŽƵƚƚŚĞǁƌŝƚƚĞŶ ĂƉƉƌŽǀĂůŽĨƚŚĞŝƚLJ͘/ĨƚŚĞŽŶƚƌĂĐƚŽƌĚĞƐŝƌĞƐĂƵƚŚŽƌŝƚLJĨƌŽŵƚŚĞŝƚLJƚŽŚĂǀĞĂĚĞĚƵĐƚŝďůĞŝŶĂŚŝŐŚĞƌĂŵŽƵŶƚ͕ƚŚĞ ŽŶƚƌĂĐƚŽƌƐŚĂůůƐŽƌĞƋƵĞƐƚŝŶǁƌŝƚŝŶŐ͕ƐƉĞĐŝĨLJŝŶŐƚŚĞĂŵŽƵŶƚŽĨƚŚĞĚĞƐŝƌĞĚĚĞĚƵĐƚŝďůĞĂŶĚƉƌŽǀŝĚŝŶŐĨŝŶĂŶĐŝĂů ĚŽĐƵŵĞŶƚĂƚŝŽŶďLJƐƵďŵŝƚƚŝŶŐƚŚĞŵŽƐƚĐƵƌƌĞŶƚĂƵĚŝƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƐŽƚŚĂƚƚŚĞŝƚLJĐĂŶĂƐĐĞƌƚĂŝŶƚŚĞ ĂďŝůŝƚLJŽĨƚŚĞŽŶƚƌĂĐƚŽƌƚŽĐŽǀĞƌƚŚĞĚĞĚƵĐƚŝďůĞĨƌŽŵŝƚƐŽǁŶƌĞƐŽƵƌĐĞƐ͘ dŚĞƌĞƚƌŽĂĐƚŝǀĞŽƌƉƌŝŽƌĂĐƚƐĚĂƚĞŽĨƐƵĐŚĐŽǀĞƌĂŐĞƐŚĂůůŶŽƚďĞĂĨƚĞƌƚŚĞĞĨĨĞĐƚŝǀĞĚĂƚĞŽĨƚŚŝƐŽŶƚƌĂĐƚĂŶĚ ŽŶƚƌĂĐƚŽƌƐŚĂůůŵĂŝŶƚĂŝŶƐƵĐŚŝŶƐƵƌĂŶĐĞĨŽƌĂƉĞƌŝŽĚŽĨĂƚůĞĂƐƚƚŚƌĞĞ;ϯͿLJĞĂƌƐ͕ĨŽůůŽǁŝŶŐĐŽŵƉůĞƚŝŽŶŽĨƚŚĞǁŽƌŬ͘ /ĨƐƵĐŚŝŶƐƵƌĂŶĐĞŝƐĚŝƐĐŽŶƚŝŶƵĞĚ͕ĞdžƚĞŶĚĞĚƌĞƉŽƌƚŝŶŐƉĞƌŝŽĚĐŽǀĞƌĂŐĞŵƵƐƚďĞŽďƚĂŝŶĞĚďLJŽŶƚƌĂĐƚŽƌƚŽĨƵůĨŝůůƚŚŝƐ ƌĞƋƵŝƌĞŵĞŶƚ͘ ϱ͘ĚĚŝƚŝŽŶĂů/ŶƐƵƌĂŶĐĞŽŶĚŝƚŝŽŶƐ xŽŶƚƌĂĐƚŽƌ͛ƐƉŽůŝĐŝĞƐƐŚĂůůďĞƉƌŝŵĂƌLJŝŶƐƵƌĂŶĐĞƚŽĂŶLJŽƚŚĞƌǀĂůŝĚĂŶĚĐŽůůĞĐƚŝďůĞŝŶƐƵƌĂŶĐĞĂǀĂŝůĂďůĞƚŽ ƚŚĞŝƚLJǁŝƚŚƌĞƐƉĞĐƚƚŽĂŶLJĐůĂŝŵĂƌŝƐŝŶŐŽƵƚŽĨŽŶƚƌĂĐƚŽƌ͛ƐƉĞƌĨŽƌŵĂŶĐĞƵŶĚĞƌƚŚŝƐĐŽŶƚƌĂĐƚ͘ xŽŶƚƌĂĐƚŽƌ͛ƐƉŽůŝĐŝĞƐĂŶĚĞƌƚŝĨŝĐĂƚĞŽĨ/ŶƐƵƌĂŶĐĞƐŚĂůůĐŽŶƚĂŝŶĂƉƌŽǀŝƐŝŽŶƚŚĂƚĐŽǀĞƌĂŐĞĂĨĨŽƌĚĞĚƵŶĚĞƌ ƚŚĞƉŽůŝĐŝĞƐƐŚĂůůŶŽƚďĞĐĂŶĐĞůůĞĚǁŝƚŚŽ ƵƚĂƚůĞĂƐƚƚŚŝƌƚLJ;ϯϬͿĚĂLJƐ͛ĂĚǀĂŶĐĞĚǁƌŝƚƚĞŶŶŽƚŝĐĞƚŽƚŚĞŝƚLJ͕Žƌ ƚĞŶ;ϭϬͿĚĂLJƐ͛ǁƌŝƚƚĞŶŶŽƚŝĐĞĨŽƌŶŽŶ ͲƉĂLJŵĞŶƚŽĨƉƌĞŵŝƵŵ͘ xŽŶƚƌĂĐƚŽƌŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƉĂLJŵĞŶƚŽĨŽŶƚƌĂĐƚƌĞůĂƚĞĚŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵƐĂŶĚĚĞĚƵĐƚŝďůĞƐ͘ x/ĨŽŶƚƌĂĐƚŽƌŝƐƐĞůĨͲŝŶƐƵƌĞĚ͕ĂĞƌƚŝĨŝĐĂƚĞŽĨ^ĞůĨͲ/ŶƐƵƌĂŶĐĞŵƵƐƚďĞĂƚƚĂĐŚĞĚ͘ xŽŶƚƌĂĐƚŽƌ͛ƐƉŽůŝĐŝĞƐƐŚĂůůŝŶĐůƵĚĞůĞŐĂůĚĞĨĞŶƐĞĨĞĞƐŝŶĂĚĚŝƚŝŽŶƚŽŝƚƐůŝĂďŝůŝƚLJƉŽůŝĐLJůŝŵŝƚƐ͕ǁŝƚŚƚŚĞ ĞdžĐĞƉƚŝŽŶŽĨƚŚĞƉƌŽĨĞƐƐŝŽŶĂůůŝĂďŝůŝƚLJŝŶƐƵƌĂŶĐĞ͘ xŽŶƚƌĂĐƚŽƌƐŚĂůůŽďƚĂŝŶŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐĨƌŽŵŝŶ ƐƵƌĂŶĐĞĐŽŵƉĂŶŝĞƐŚĂǀŝŶŐĂŶ͞D^d͟ƌĂƚŝŶŐŽĨͲ ;ŵŝŶƵƐͿ͖&ŝŶĂŶĐŝĂů^ŝnjĞĂƚĞŐŽƌLJ;&^Ϳs//ŽƌďĞƚƚĞƌ͕ĂŶĚĂƵƚŚŽƌŝnjĞĚƚŽĚŽďƵƐŝŶĞƐƐŝŶƚŚĞ^ƚĂƚĞŽĨ DŝŶŶĞƐŽƚĂ͖ĂŶĚ xŶhŵďƌĞůůĂŽƌdžĐĞƐƐ>ŝĂďŝůŝƚLJŝŶƐƵƌĂŶĐĞƉŽůŝĐLJŵĂLJďĞƵƐĞĚƚŽƐƵƉƉůĞŵĞŶƚƚŚĞŽŶƚƌĂĐƚŽƌ͛ƐƉŽůŝĐLJůŝŵŝƚƐ ŽŶĂĨŽůůŽǁͲĨŽƌŵďĂƐŝƐƚŽƐĂƚŝƐĨLJƚŚĞĨƵůůƉŽůŝĐLJůŝŵŝƚƐƌĞƋƵŝƌĞĚďLJƚŚĞŽŶƚƌĂĐƚ͘ x dŚĞŝƚLJƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽŝŵŵĞĚŝĂƚĞůLJƚĞƌŵŝŶĂƚĞƚŚĞĐŽŶƚƌĂĐƚŝĨƚŚĞŽŶƚƌĂĐƚŽƌŝƐŶŽƚŝŶĐŽŵƉůŝĂŶĐĞ ǁŝƚŚƚŚĞŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐĂŶĚƌĞƚĂŝŶƐĂůůƌŝŐŚƚƐƚŽƉƵƌƐƵĞĂŶLJůĞŐĂůƌĞŵĞĚŝĞƐĂŐĂŝŶƐƚƚŚĞ ĐŽŶƚƌĂĐƚŽƌ͘ xůůŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐŵƵƐƚďĞŽƉĞŶƚŽŝŶƐƉĞĐƚŝŽŶďLJƚŚĞŝƚLJ͕ĂŶĚĐŽƉŝĞƐŽĨƉŽůŝĐŝĞƐŵƵƐƚďĞƐƵďŵŝƚƚĞĚƚŽ ƚŚĞŝƚLJ͛ƐĂƵƚŚŽƌŝnjĞĚƌĞƉƌĞƐĞŶƚĂƚŝǀĞƵƉŽŶǁƌŝƚƚĞŶƌĞƋƵĞƐƚ͘ x dŚĞŽŶƚƌĂĐƚŽƌŝƐƌĞƋƵŝƌĞĚƚŽƐƵďŵŝƚĂĞƌƚŝĨŝĐĂƚĞƐŽĨ/ŶƐƵƌĂŶĐĞĂĐĐĞƉƚĂďůĞƚŽƚŚĞŝƚLJĂƐĞǀŝĚĞŶĐĞŽĨƚŚĞ ƌĞƋƵŝƌĞĚŝŶƐƵƌĂŶĐĞĐŽǀĞƌĂŐĞƌĞƋƵŝƌĞŵĞŶƚƐ͘ x dŚĞŝƚLJƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽŵŽĚŝĨLJƚŚĞŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌĂƉĂƌƚŝĐƵůĂƌƉƌŽũĞĐƚ͘ $,$'RFXPHQW$± 6WDQGDUG)RUPRI$JUHHPHQW%HWZHHQ2ZQHUDQG&RQVWUXFWLRQ 0DQDJHUDV&RQVWUXFWRU ZKHUHWKHEDVLVRISD\PHQWLVWKH &RVWRIWKH:RUN3OXVD)HHZLWKD *XDUDQWHHG0D[LPXP3ULFH $*5((0(17PDGHDVRIWKH©ªGD\RI©ªLQWKH\HDU©ª $'',7,216$1''(/(7,216 7KHDXWKRURIWKLVGRFXPHQW [[222,1010,352,1045][7][,I,][Times New Roman]] ,QZRUGV [[352,1010,588,1045][7][,I,][Times New Roman]]LQGLFDWHGD\PRQWK [[589,1010,597,1045][7][,I,][Times New Roman]] [[597,1010,605,1045][7][,I,][Times New Roman]] [[604,1010,727,1045][7][,I ,][Times New Roman]]DQG\HDU [[727,1010,735,1045][7][,I,][Times New Roman]] KDVDGGHGLQIRUPDWLRQ QHHGHGIRULWVFRPSOHWLRQ %(7:((1WKH2ZQHU 7KHDXWKRUPD\DOVRKDYH UHYLVHGWKHWH[WRIWKH [[222,1114,316,1149][7][,I,][Times New Roman]] 1DPH [[316,1114,562,1149][7][,I,][Times New Roman]]OHJDOVWDWXVDGGUHVV [[562,1114,570,1149][7][,I,][Times New Roman]] [[569,1114,577,1149][7][,I,][Times New Roman]] [[576,1114,840,1149][7][,I,] [Times New Roman]]DQGRWKHULQIRUPDWLRQ [[838,1114,851,1149][7][,I,][Times New Roman]] [[851,1114,859,1149][7][,I,][Times New Roman]] RULJLQDO$,$VWDQGDUGIRUP $Q$GGLWLRQVDQG'HOHWLRQV ©&LW\RI5RFKHVWHUª©ª 5HSRUWWKDWQRWHVDGGHG WK ©6WUHHW6(ª LQIRUPDWLRQDVZHOODV UHYLVLRQVWRWKHVWDQGDUG ©5RFKHVWHU01ª IRUPWH[WLVDYDLODEOHIURP ©OHWLRQ ©ª RUPRGLILFDWLRQ ©ª $,$'RFXPHQW$± 7$%/(2)$57,&/(6 ,1,7,$/,1)250$7,21 *(1(5$/3529,6,216 &216758&7,210$1$*(5·65(63216,%,/,7,(6 2:1(5·65(63216,%,/,7,(6 &203(16$7,21$1'3$<0(176)2535(&216758&7,213+$6(6(59,&(6 &203(16$7,21)25&216758&7,213+$6(6(59,&(6 7KH2ZQHU¶VEXGJHWIRUWKH*XDUDQWHHG0D[LPXP3ULFHDVGHILQHGLQ$UWLFOH [[228,2527,883,2563][7][,I,][Times New Roman]] 3URYLGHWRWDODQGLINQRZQDOLQHLWHPEUHDNGRZQ [[885,2527,893,2563][7][,I,][Times New Roman]] $,$'RFXPHQW$±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV GUDIWZDVSURGXFHGDW ©7KH2ZQHU¶VEXGJHWIRUFRQVWUXFWLRQLV>LQVHUW@7KLVEXGJHWPD\YDU\BBBZLWKRXWDQ\DGMXVWPHQWWRWKH )RUPDWWHG+LJKOLJKW SURMHFWVWDIILQJSODQª )RUPDWWHG+LJKOLJKW 7KH2ZQHU¶VDQWLFLSDWHGGHVLJQDQGFRQVWUXFWLRQPLOHVWRQHGDWHV )RUPDWWHG+LJKOLJKW 'HVLJQSKDVHPLOHVWRQHGDWHVLIDQ\ ©'HVLJQFRPSOHWLRQBBBBBBBª &RQVWUXFWLRQFRPPHQFHPHQWGDWH ©ª 6XEVWDQWLDO&RPSOHWLRQGDWHRUGDWHV ©ª 2WKHUPLOHVWRQHGDWHV ©ª 7KH2ZQHU¶VUHTXLUHPHQWVIRUDFFHOHUDWHGRUIDVWWUDFNVFKHGXOLQJRUSKDVHGFRQVWUXFWLRQDUHVHWIRUWKEHORZ [[228,1393,563,1429][7][,I,][Times New Roman]] ,GHQWLI\DQ\UHTXLUHPHQWV [[559,1393,653,1429][7][,I,][Times New Roman]]IRUIDVW [[652,1393,662,1429][7][,I,][Times New Roman]] [[663,1393,1177,1429][7][,I,][Times New Roman]]WUDFNVFKHGXOLQJRUSK DVHGFRQVWUXFWLRQ [[1179,1393,1187,1429][7][,I,][Times New Roman]] ©ª 7KH2ZQHU¶VDQWLFLSDWHG6XVWDLQDEOH2EMHFWLYHIRUWKH3URMHFW [[228,1570,241,1606][7][,I,][Times New Roman]] [[237,1570,1225,1606][7][,,][FEF1A19578C]],GHQWLI\DQGGHVFULEHWKH2ZQHU¶V6XVWDLQDEOH2EMHFWLYHIRUWKH3URMHFWLIDQ\ [[1229,1570,1237,1606][7][,I,][Times New Roman]] ©ª ,IWKH2ZQHULGHQWLILHVD6XVWDLQDEOH2EMHFWLYHSULRUWRFRPPHQFHPHQWRIWKH:RUNWKH2ZQHUDQG &RQVWUXFWLRQ0DQDJHUVKDOOHQGHDYRUWRGHILQHWKHWHUPVFRQGLWLRQVDQGVHUYLFHVUHODWHGWRWKH2 ZQHU¶V6XVWDLQ DEOH REMHFWLYHDQGPD\FRPSOHWHDQGLQFRUSRUDWH$,$'RFXPHQW(±6XVWDLQDEOH3URMHFWV([KLELW&RQVWUXFWLRQ &RPPHQWHG>0:@ 5HYLHZRQSURMHFWE\SURMHFWEDVLV 0DQDJHUDV&RQVWUXFWRU(GLWLRQLQWRWKLV$JUHHPHQWWRGHILQHWKHWHUPVFRQGLWLRQVDQGVHUYLFHVUHODWHGWRWKH2ZQHU¶V LIWKHUHLVDVXVWDLQDELOLW\REMHFWLYH 6XVWDLQDEOH2EMHFWLYH,I(±LVLQFRUSRUDWHGLQWRWKLVDJUHHPHQWWKH2ZQHUDQG&RQVWUXFWLRQ0DQDJHUVKDOO 'HOHWHG VKDOO LQFRUSRUDWHWKHFRPSOHWHG(±LQWRWKHDJUHHPHQWVZLWKWKHFRQVXOWDQWVDQGFRQWUDFWRUVSHUIRUPLQJVHUYLFHVRU :RUNLQDQ\ZD\DVVRFLDWHGZLWKWKH6XVWDLQDEOH2EMHFWLYH 7KHSHUVRQVRUHQWLWLHVLQDGGLWLRQWRWKH2ZQHU¶VUHSUHVHQWDWLYHZKRDUHUHTXLUHGWRUHYLHZWKH&RQVWUXFWLRQ 0DQDJHU¶VVXEPLWWDOVWRWKH2ZQHUDUHDVIROORZV [[228,717,605,753][7][,I,][Times New Roman]] /LVWQDPHDGGUHVVDQGRWKHU [[606,717,705,753][7][,I,][Times New Roman]]FRQWDFW [[705,717,867,753][7][,I,][Times New Roman]]LQIRUPDWLRQ [[869,717,877,753][7][,I,][Times New Roman]] ©7%'ª 7KH2ZQHUVKDOOUHWDLQWKHIROORZLQJFRQVXOWDQWVDQGFRQWUDFWRUV [[228,895,1031,931][7][,I,][Times New Roman]] /LVWQDPHOHJDOVWDWXVDGGUHVVDQGRWKHUFRQWDFWLQIRUPDWLRQ [[1034,895,1042,931][7][,I,][Times New Roman]] *HRWHFKQLFDO(QJLQHHU ©ª©ª ©ª ©ª ©ª ©ª 'HOHWHG &LYLO(QJLQHHU 2WKHULIDQ\ [[412,1321,1417,1357][7][,I,][Times New Roman]] /LVWDQ\RWKHUFRQVXOWDQWVUHWDLQHGE\WKH2ZQHUVXFKDVD3URMHFWRU3URJUDP [[1416,1321,1533,1357][7][,I,][Times New Roman]]0DQDJHU [[1532,1321,1549,1357][7][,I,][Times New Roman]] [[1550,1321,1558,1357][7][,I,][Times New Roman]] ©ª©ª ©ª ©ª ©©>LQVHUWDVDSSOLFDEOH@0(3&RPPLVVLRQLQJ$JHQW ©ª ([WHULRU(QYHORSH&RPPLVVLRQLQJ$JHQW ©ª ,QGHSHQGHQW0DWHULDOV7HVWLQJ$JHQWª 'HOHWHG 7KH$UFKLWHFW¶VUHSUHVHQWDWLYH &RPPHQWHG>-3@ 3OHDVHDGGFRPPLVVLRQLQJDJHQWDQG [[228,1570,874,1606][7][,I,][Times New Roman]] /LVWQDPHDGGUHVVDQGRWKHUFRQWDFWLQIRUPDWLRQ [[877,1570,885,1606][7][,I,][Times New Roman]] LQGHSHQGHQWPDWHULDOVWHVWLQJDJHQF\3OHDVHSODFH1$E\ FLYLO ©ª ©ª ©ª ©ª ©ª ©ª 7KH&RQVWUXFWLRQ0DQDJHULGHQWLILHVWKHIROORZLQJUHSUHVHQWDWLYHLQDFFRUGDQFHZLWK$UWLFOH [[228,1926,469,1962][7][,I,][Times New Roman]] /LVWQDPHDGGUHVV [[471,1926,486,1962][7][,I,][Times New Roman]] [[487,1926,614,1962][7][,I,][Times New Roman]]DQGRWKHU [[614,1926,712,1962][7][,I,][Times New Roman]]FRQWDFW [[713,1926,875,1962 ][7][,I,][Times New Roman]]LQIRUPDWLRQ [[877,1926,885,1962][7][,I,][Times New Roman]] ©ª ©ª ©ª ©ª ©ª ©ª 7KH2ZQHU¶VUHTXLUHPHQWVIRUWKH&RQVWUXFWLRQ0DQDJHU¶VVWDIILQJSODQIRU3UHFRQVWUXFWLRQ6HUYLFHVDV UHTXLUHGXQGHU6HFWLRQ &RPPHQWHG>-3@ /LVWVWDIILQJSODQDJUHHGXSRQKHUH [[228,2316,429,2352][7][,I,][Times New Roman]] /LVWDQ\2ZQHU [[430,2316,440,2352][7][,I,][Times New Roman]] [[440,2316,1145,2352][7][,I,][Times New Roman]]VSHFLILFUHTXLUHPHQWVWREHLQFOXGHGLQWKHVWDIILQJSODQ [[1146,2316,1154,2352][7][,I,][Times New Roman]] DQGUHPRYHUHIHUHQFHWR5)3 'HOHWHG ©3UHFRQVWUXFWLRQSKDVHVHUYLFHVDVVSHFLILFDOO\RXWOLQHGLQWKH5HTXHVWIRU3URSRVDODQGDVRXWOLQHGLQWKLV$JUHHPHQW VXEFRQWUDFWRU ª &RPPHQWHG>0:@ ,IWKHUHDUH,5$RURWKHU SURFXUHPHQWUHTXLUHPHQWVLGHQWLI\WKHPKHUH 7KH2ZQHU¶VUHTXLUHPHQWVIRU&RQVWUXFWLRQ0DQDJHU¶VSURFXUHPHQWRI6XEFRQWUDFWRU V IRUWKHSHUIRUPDQFHRI &RPPHQWHG>-35@ WKH:RUNVKDOOLQFRUSRUDWH&RQVWUXFWLRQ0DQDJHU¶VGHVFULEHGVXEFRQWUDFWRUSURFXUHPHQWSURFHVVVXEPLWWHGLQUHVSRQVH/HW¶VLQFRUSRUDWHWKH&LW\([KLELWV KHUHIRUVWDQGDUGSURMHFWVIROORZHGE\,5$ZLWKDFKHDW WRWKH3URMHFW5)3DQGFRPSO\ZLWK0LQQHVRWD6WDWXWHV6HFWLRQ´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV GUDIWZDVSURGXFHGDW ©ª 2WKHU,QLWLDO,QIRUPDWLRQRQZKLFKWKLV$JUHHPHQWLVEDVHG ©>OLVWVWDIILQJSODQKHUH@ª &RPPHQWHG>0:@ ,UHFRPPHQGLQVHUWLQJVSHFLILF SRUWLRQVRI5)4DQG5)3UDWKHUWKDQJHQHUDOUHIHUHQFH 7KH2ZQHUDQG&RQVWUXFWLRQ0DQDJHUPD\UHO\RQWKH,QLWLDO,QIRUPDWLRQ%RWKSDUWLHVKRZHYHUUHFRJQL]HWKDW :KDWVSHFLILFPDWWHUVLQ5)3DUHPRVWPDWHULDOWR&LW\" VXFKLQIRUPDWLRQPD\PDWHULDOO\FKDQJHDQGLQWKDWHYHQWWKH2ZQHUDQGWKH&RQVWUXFWLRQ0DQDJHUVKDOODSSURSULDWHO\ &RPPHQWHG>-33ULFH$PHQGPHQWDQGUHYLVLRQVSUHSDUHGE\WKH $UFKLWHFWDQGIXUQLVKHGE\WKH2ZQHUDVGHVFULEHGLQ6HFWLRQ7KH&RQWUDFWUHSUHVHQWVWKHHQWLUHDQGLQWHJUDWHG DJUHHPHQWEHWZHHQWKHSDUWLHVKHUHWRDQGVXSHUVHGHVSULRUQHJRWLDWLRQVUHSUHVHQWDWLRQVRUDJUHHPHQWVHLWKHUZULWWHQRU RUDO,IDQ\WKLQJLQWKHRWKHU&RQWUDFW'RFXPHQWVRWKHUWKDQD0RGLILFDWLRQLVLQFRQVLVWHQWZLWKWKLV$JUHHPHQWWKLV $JUHHPHQWVKDOOJRYHUQ$QHQXPHUDWLRQRIWKH&RQWUDFW'RFXPHQWVRWKHUWKDQD0RGLILFDWLRQDSSHDUVLQ$UWLFOH 5HODWLRQVKLSRIWKH3DUWLHV 7KH&RQVWUXFWLRQ0DQDJHUDFFHSWVWKHUHODWLRQVKLSRIWUXVWDQGFRQILGHQFHHVWDEOLVKHGE\WKLV$JUHHPHQWDQGFRYHQDQWV ZLWKWKH2ZQHUWRFRRSHUDWHZLWKWKH$UFKLWHFWDQGH[HUFLVHWKH&RQVWUXFWLRQ0DQDJHU¶VVNLOODQGMXGJPHQWLQ IXUWKHULQJWKHLQWHUHVWVRIWKH2ZQHUWRIXUQLVKHIILFLHQWFRQVWUXFWLRQDGPLQLVWUDWLRQPDQDJHPHQWVHUYLFHVDQG VXSHUYLVLRQWRIXUQLVKDWDOOWLPHVDQDGHTXDWHVXSSO\RIZRUNHUVDQGPDWHULDOVDQGWRSHUIRUPWKH:RUNLQDQ H[SHGLWLRXVDQGHFRQRPLFDOPDQQHUFRQVLVWHQWZLWKWKH2ZQHU¶VLQWHUHVWV7KH2ZQHUDJUHHVWRIXUQLVKRUDSSURYHLQD WLPHO\PDQQHULQIRUPDWLRQUHTXLUHGE\WKH&RQVWUXFWLRQ0DQDJHUDQGWRPDNHSD\PHQWVWRWKH&RQVWUXFWLRQ0DQDJHU LQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKH&RQWUDFW'RFXPHQWV *HQHUDO&RQGLWLRQV )RUWKH3UHFRQVWUXFWLRQ3KDVH$,$'RFXPHQW$±VLQFRUSRUDWHGKHUHLQE\UHIHUHQFH7KHWHUP³&RQWUDFWRU´DVXVHGLQ$±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«DVSDUWRIWKHJXDUDQWHHG QRQFRQIRUPLW\GLVFRYHUHGE\RUPDGHNQRZQWRWKH&RQVWUXFWLRQ0DQDJHUDVDUHTXHVWIRULQIRUPDWLRQLQVXFKIRUPDV PD[LPXPSULFH7KH&RQVWUXFWLRQ0DQDJHUVKDOOFRPSOHWH WKH$UFKLWHFWPD\UHTXLUH FRPSUHKHQVLYHHVWLPDWHVDWWKHFRQFHSWXDOVFKHPDWLF GHVLJQGHYHORSPHQWDQG&RQVWUXFWLRQ'RFXPHQW 7KH&RQVWUXFWLRQ0DQDJHUVKDOOSURYLGHDSUHOLPLQDU\HYDOXDWLRQRIWKH2ZQHU¶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± %XLOGLQJ,QIRUPDWLRQ0RGHOLQJDQG'LJLWDO'DWD ([KLELWWRHVWDEOLVKWKH 3URMHFW6FKHGXOH :KHQ3URMHFWUHTXLUHPHQWVKDYHEHHQVXIILFLHQWO\LGHQWLILHGWKH&RQVWUXFWLRQ0DQDJHUVKDOOSUHSDUHDQGXSGDWHRQD 'HOHWHG LQ6HFWLRQ PRQWKO\EDVLVRUDWDQRWKHULQWHUYDODJUHHGWRE\2ZQHUDQG&RQVWUXFWLRQ0DQDJHUD3URMHFWVFKHGXOHIRUWKH 'HOHWHG SHULRGLFDOO\ $UFKLWHFW¶VUHYLHZDQGWKH2ZQHU¶VDFFHSWDQFH7KH&RQVWUXFWLRQ0DQDJHUVKDOOREWDLQWKH$UFKLWHFW¶VDSSURYDOIRUWKH SRUWLRQRIWKH3URMHFWVFKHGXOHUHODWLQJWRWKHSHUIRUPDQFHRIWKH$UFKLWHFW¶VVHUYLFHV7KH3URMHFWVFKHGXOHVKDOO &RPPHQWHG>-3@ 0RQWKO\VFKHGXOHXSGDWHVIURP FRRUGLQDWHDQGLQWHJUDWHWKH&RQVWUXFWLRQ0DQDJHU¶VVHUYLFHVWKH$UFKLWHFW¶VVHUYLFHVRWKHU2ZQHUFRQVXOWDQWV¶ SUHFRQVWUXFWLRQWKURXJKFRQVWUXFWLRQ VHUYLFHVDQGWKH2ZQHU¶VUHVSRQVLELOLWLHVDQGLGHQWLI\LWHPVWKDWDIIHFWWKH3URMHFW¶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«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¶VUHYLHZDQGWKH2ZQHU¶VDSSURYDOSUHOLPLQDU\HVWLPDWHVRIWKH&RVWRIWKH:RUNRUWKH FRVWRISURJUDPUHTXLUHPHQWVXVLQJDUHDYROXPHRUVLPLODUFRQFHSWXDOHVWLPDWLQJWHFKQLTXHV,IWKH$UFKLWHFWRU &RQVWUXFWLRQ0DQDJHUVXJJHVWVDOWHUQDWLYHPDWHULDOVDQGV\VWHPVWKH&RQVWUXFWLRQ0DQDJHUVKDOOSURYLGHFRVW HYDOXDWLRQVRIWKRVHDOWHUQDWLYHPDWHULDOVDQGV\VWHPV $VWKH$UFKLWHFWSURJUHVVHVZLWKWKHSUHSDUDWLRQRIWKH6FKHPDWLF'HVLJQ'HVLJQ'HYHORSPHQWDQG &RQVWUXFWLRQ'RFXPHQWVWKH&RQVWUXFWLRQ0DQDJHUVKDOOSUHSDUHDQGXSGDWHDWWKHFRQFOXVLRQRIFRQFHSWXDOGHVLJQ $,$'RFXPHQW$±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV GUDIWZDVSURGXFHGDW VFKHPDWLFGHVLJQGHVLJQGHYHORSPHQW&RQVWUXFWLRQGRFXPHQWVDQGDWRWKHUDSSURSULDWHLQWHUYDOVDJUHHGWRE\WKH &RPPHQWHG>0:@ 0D\QHHGWRGHILQHDSSURSULDWH 2ZQHU&RQVWUXFWLRQ0DQDJHUDQG$UFKLWHFWDQHVWLPDWHRIWKH&RVWRIWKH:RUNZLWKLQFUHDVLQJGHWDLODQGUHILQHPHQW ǡ ǡ LQWHUYDOVEDVHGRQSURMHFWVFRSHDQGVFKHGXOH 7KH&RQVWUXFWLRQ0DQDJHUVKDOOLQFOXGHLQWKHHVWLPDWHWKRVHFRVWVWRDOORZIRUWKHIXUWKHUGHYHORSPHQWRIWKHGHVLJQ &RPPHQWHG>-35@ &RQFHSWXDO6'''DQG XQWLOVXFKWLPHDVWKH2ZQHUDQG&RQVWUXFWLRQ0DQDJHUDJUHHRQD &' *XDUDQWHHG0D[LPXP3ULFHIRUWKH:RUN7KHHVWLPDWHVKDOOEHSURYLGHGIRUWKH$UFKLWHFW¶VUHYLHZDQGWKH2ZQHU¶V &RPPHQWHG>-35@ DSSURYDO7KH&RQVWUXFWLRQ0DQDJHUVKDOOLQIRUPWKH2ZQHUDQG$UFKLWHFWLQWKHHYHQWWKDWWKHHVWLPDWHRIWKH&RVWRI «DQGXSGDWHDFRPSUHKHQVLYH FRVWHVWLPDWHIRUWKH&RVWRI:RUNDWWKHFRQFOXVLRQRI WKH:RUNH[FHHGVWKHODWHVWDSSURYHG3URMHFWEXGJHWDQGPDNHUHFRPPHQGDWLRQVIRUFRUUHFWLYHDFWLRQ FRQFHSWXDOGHVLJQVFKHPDWLFGHVLJQGHVLJQGHYHORSPHQW DQG&RQVWUXFWLRQGRFXPHQWVZLWKLQFUHDVLQJGHWDLODQG ,IWKH$UFKLWHFWLVSURYLGLQJFRVWHVWLPDWLQJVHUYLFHVDVD6XSSOHPHQWDO6HUYLFHDQGDGLVFUHSDQF\H[LVWV UHILQHPHQW EHWZHHQWKH&RQVWU XFWLRQ0DQDJHU¶VFRVWHVWLPDWHVDQGWKH$UFKLWHFW¶VFRVWHVWLPDWHVWKH&RQVWUXFWLRQ0DQDJHUDQG WKH$UFKLWHFWVKDOOZRUNWRJHWKHUWRUHFRQFLOHWKHFRVWHVWLPDWHV 7KH&RQVWUXFWLRQ0DQDJHUVKDOOSURYLGHDVWDIILQJSODQIRU3UHFRQVWUXFWLRQ3KDVHV HUYLFHVIRUWKH2ZQHU¶V UHYLHZDQGDSSURYDO ,IWKH2ZQHULGHQWLILHGD6XVWDLQDEOH2EMHFWLYHLQ$UWLFOHWKH&RQVWUXFWLRQ0DQDJHUVKDOOIXOILOOLWV 3UHFRQVWUXFWLRQ3KDVHUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHDJUHHGXSRQWHUPVFRQGLWLRQVDQGVHUYLFHVUHODWHGWRWKH 2ZQHU¶V6XVWDLQDEOH2EMHFWLYH 'HOHWHG DVUHTXLUHGLQ$,$'RFXPHQW(± 6XVWDLQDEOH3URMHFWV([KLELW&RQVWUXFWLRQ0DQDJHUDV &RQVWUXFWRU(GLWLRQDWWDFKHGWRWKLV$JUHHPHQW 6XEFRQWUDFWRUVDQG6XSSOLHUV ,IWKH2ZQHUKDVSURYLGHGUHTXLUHPHQWVIRUVXEFRQWUDFWRUSURFXUHPHQWLQVHFWLRQWKH&RQVWUXFWLRQ 0DQDJHUVKDOOSURYLGHDVXEFRQWUDFWLQJSODQDGGUHVVLQJWKH2ZQHU¶VUHTXLUHPHQWVIRUWKH2ZQHU¶VUHYLHZDQG DSSURYDO 7KH&RQVWUXFWLRQ0DQDJHUVKDOOGHYHORSELGGHUV¶LQWHUHVWLQWKH3URMHFWLQDFFRUGDQFHZLWKWKH SUHTXDOLILFDWLRQUHTXLUHPHQWVGHYHORSHGZLWKWKH2ZQHUDQGLQDFFRUGDQFHZLWK0LQQHVRWD6WDWXWHV6HFWLRQWKH &RPPHQWHG>-35@ &RQVWUXFWLRQ0DQDJHUPD\ &RQVWUXFWLRQ0DQDJHUVKDOOLQFOXGHDQ\FDWHJRU\RI6HOI3HUIRUP:RUNDVDVHSDUDWHOXPSVXPOLQHLWHPLQLWV*03 SHUIRUPZRUNFDWHJRUL]HGDV³*HQHUDO&RQGLWLRQV´LI DQGVFKHGXOHRIYDOXHV WKH³6HOI3HUIRUP/XPS6XP´ 7KH6HOI3HUIRUP/XPS6XPVKDOOEHWUHDWHGDVD6XEFRQWUDFW FRPSOHWHGDWWKHDJUHHGXSRQODERUUDWHVLQ([KLELW;DQG &RVWXQGHU6HFWLRQ 3URFXUHPHQW 7KH&RQVWUXFWLRQ0DQDJHUVKDOOSUHSDUHIRUWKH$UFKLWHFW¶VUHYLHZDQGWKH2ZQHU¶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imes New Roman]] [[238,1285,690,1321][7][,I,][Times New Roman]]'HVFULEHDQ\RWKHU3UHFRQVWUXFWLRQ [[689,1285,786,1321][7][,I,][Times New Roman]]3KDVHV [[785,1285,986,1321][7][,I,][Times New Roman]]HUYLFHVVXFKDV [[985,1285,1109,1321][7][,I,][Times New Roman]]SURYLGLQJ [[1108,1285,1116,1321][7][,I,][Times New Roman]] [[1116,1285,1394,1321][7][,I,][Times New Roman]]FDVKIORZSURMHFWLRQV [[1396,1285,1709,1 321][7][,I,][Times New Roman]]GHYHORSPHQWRIDSURMHFW [[228,1321,1266,1357][7][,I,][Times New Roman]]LQIRUPDWLRQPDQDJHPHQWV\VWHPHDUO\VHOHFWLRQRUSURFXUHPHQWRIVXEFRQWUDFWRUV [[1268,1321,1321,1357][7][,I,][Times New Roman]]HWF [[1322,1321,1330,1357][7][,I,][Times New Roman]] ©ª *XDUDQWHHG0D[LPXP3ULFH3URSRVDO $WDWLPHWREHPXWXDOO\DJUHHGXSRQE\WKH2ZQHUDQGWKH&RQVWUXFWLRQ0DQDJHUWKH&RQVWUXFWLRQ0DQDJHU VKDOOSUHSDUHD*XDUDQWHHG0D[LPXP3ULFHSURSRVDOIRUWKH2ZQHU¶VDQG$UFKLWHFW¶VUHYLHZDQGWKH2ZQHU¶V DFFHSWDQFH7KH*XDUDQWHHG0D[LPXP3ULFHLQWKHSURSRVDOVKDOOEHWKHVXPRIWKH&RQVWUXFWLRQ0DQDJHU¶VHVWLPDWHRI WKH&RVWRIWKH:RUNWKH&RQVWUXFWLRQ0DQDJHU¶VFRQWLQJHQF\GHVFULEHGLQ6HFWLRQDQGWKH&RQVWUXFWLRQ 0DQDJHU¶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¶V FRQWLQJHQF\VHWIRUWKLQ6HFWLRQDQGWKH&RQVWUXFWLRQ0DQDJHU¶V)HH 7KHDQWLFLSDWHGGDWHRI6XEVWDQWLDO&RPSOHWLRQXSRQZKLFKWKHSURSRVHG*XDUDQWHHG0D[LPXP3ULFHLV EDVHGDQG &RPPHQWHG>-3@ &0¶VXVHZLWKRZQHUDSSURYDORI $GDWHE\ZKLFKWKH2ZQHUPXVWDFFHSWWKH*XDUDQWHHG0D[LPXP3ULFH FRQWLQJHQF\H[SHQGLWXUH'HOHWHH[FOXVLYH'LVFXVV VWDIILQJSODQLQFUHDVHVDVZHOO ,QSUHSDULQJWKH&RQVWUXFWLRQ0DQDJHU¶V*XDUDQWHHG0D[LPXP3ULFHSURSRVDOWKH&RQVWUXFWLRQ0DQDJHUVKDOO LQFOXGHDFRQWLQJHQF\IRUWKH&RQVWUXFWLRQ0DQDJHU¶VXVHWRFRYHUWKRVHFRVWVWKDWDUHLQFOXGHGLQWKH*XDUDQWHHG &RPPHQWHG>-35@ «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±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´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± &RVW&RQWURO 7KH&RQVWUXFWLRQ0DQDJHUVKDOOGHYHORSDV\VWHPRIFRVWFRQWUROIRUWKH:RUNLQFOXGLQJUHJXODUPRQLWRULQJRIDFWXDO FRVWVIRUDFWLYLWLHVLQSURJUHVVDQGHVWLPDWHVIRUXQFRPSOHWHGWDVNVDQGSURSRVHGFKDQJHV7KH&RQVWUXFWLRQ0DQDJHU VKDOOLGHQWLI\YDULDQFHVEHWZHHQDFWXDODQGHVWLPDWHGFRVWVDQGUHSRUWWKHYDULDQFHVWRWKH2ZQHUDQG$UFKLWHFWDQG VKDOOSURYLGHWKLVLQIRUPDWLRQLQLWVPRQWKO\UHSRUWVWRWKH2ZQHUDQG$UFKLWHFWLQDFFRUGDQFHZLWK6HFWLRQ DERYH $57,&/(2:1(5·65(63216,%,/,7,(6 ,QIRUPDWLRQDQG6HUYLFHV5HTXLUHGRIWKH2ZQHU 7KH2ZQHUVKDOOHVWDEOLVKDQGSHULRGLFDOO\XSGDWHWKH2ZQHU¶VEXGJHWIRUWKH3URMHFWLQFOXGLQJ WKHEXGJHW 'HOHWHG 7KH2ZQHUVKDOOSURYLGHLQIRUPDWLRQZLWK IRUWKH&RVWRIWKH:RUNDVGHILQHGLQ$UWLFOH$PHQGPHQWWKH&RQVWUXFWLRQ0DQDJHUPD\ ZLWKUHDVRQDEOHSURPSWQHVVDI WHUUHFHLYLQJWKH&RQVWUXFWLRQ0DQDJHU¶VZULWWHQUHTXHVWIRUVXFKLQIRUPDWLRQRUVHUYLFHV UHTXHVWLQZULWLQJWKDWWKH2ZQHUSURYLGHUHDVRQDEOH 6XEMHFWWRZULWWHQGLVFODLPHURUTXDOLILFDWLRQIURPWKH2ZQHUDVWRDFFXUDF\WKH&RQVWUXFWLRQ0DQDJHUVKDOOEHHQWLWOHG HYLGHQFHWKDWWKH2ZQHUKDVPDGHILQDQFLDODUUDQJHPHQWVWR WRUHO\RQWKHDFFXUDF\RILQIRUPDWLRQDQGVHUYLFHVIXUQLVKHGE\WKH2ZQHUEXWVKDOOH[HUFLVHSURSHUSUHFDXWLRQV IXOILOOWKH2ZQHU¶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¶VUHYLHZWKLVOLVWDQGPDNH WKH2ZQHU¶VFRQWURODQGUHOHYDQWWRWKH&RQVWUXFWLRQ0DQDJHU¶VSHUIRUPDQFHRIWKH:RUNZLWKUHDVRQDEOHSURPSWQHVV FRQVLVWHQWZLWK$UFKLWHFWDJUHHPHQW DIWHUUHFHLYLQJWKH&RQVWUXFWLRQ0DQDJHU¶VZULWWHQUHTXHVWIRUVXFKLQIRUPDWLRQRUVHUYLFHV 'HOHWHG ,IWKH2ZQHULGHQWLILHGD6XVWDLQDEOH2EMHFWLYHLQ$UWLFOHWKH2ZQHUVKDOOIXOILOOLWVUHVSRQVLELOLWLHVDVUHTXLUHG 'HOHWHG LQ$,$'RFXPHQW(±6XVWDLQDEOH3URMHFWV([KLELW&RQVWUXFWLRQ0DQDJHUDV&RQVWUXFWRU(GLWLRQDWWDFKHG 'HOHWHG WRWKLV$JUHHPHQW 2ZQHU·V'HVLJQDWHG5HSUHVHQWDWLYH 7KH2ZQHUVKDOOLGHQWLI\DUHSUHVHQWDWLYHDXWKRUL]HGWRDFWRQEHKDOIRIWKH2ZQHUZLWKUHVSHFWWRWKH3URMHFW7KH 2ZQHU¶VUHSUHVHQWDWLYHVKDOOUHQGHUGHFLVLRQVSURPSWO\DQGIXUQLVKLQIRUPDWLRQH[SHGLWLRXVO\VRDVWRDYRLG XQUHDVRQDEOHGHOD\LQWKHVHUYLFHVRU:RUNRIWKH&RQVWUXFWLRQ0DQDJHU7KH2ZQHU¶VUHSUHVHQWDWLYHVKDOOKDYHWKH H[WHQWRIDQGOLPLWDWLRQRQDXWKRULW\DVVHWIRUWKLQ6HFWLRQRIWKH$ 2ZQHU¶VJRYHUQLQJERG\SULRUWRFRPPXQLFDWLQJDGHFLVLRQWRWKH&RQVWUXFWLRQ0DQDJHU([FHSWDVRWKHUZLVHSURYLGHG LQ6HFWLRQRI$±DQQHGIURPBBBBBBBBBBBWKURXJKBBBBBBBBBBBBª 7KHKRXUO\ELOOLQJUDWHVIRU3UHFRQVWUXFWLRQ3KDVHVHUYLFHVRIWKH&RQVWUXFWLRQ0DQDJHUDQGWKH&RQVWUXFWLRQ 0DQDJHU¶V&RQVXOWDQWVDQG6XEFRQWUDFWRUVLIDQ\DUHVHWIRUWKEHORZ [[228,1605,1175,1641][7][,I,][Times New Roman]] ,IDSSOLFDEOHDWWDFKDQH[KLELWRIKRXUO\ELOOLQJUDWHVRULQVHUWWKHPEHORZ [[1178,1605,1186,1641][7][,I,][Times New Roman]] ©LQVHUWDVDSSOLFDEOHRUXVHELOOLQJUDWHVH[KLELWCª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©ª ©ª &RPPHQWHG>0:@ ,GHQWLI\DSSURSULDWHOHQJWKRIWLPH PRQWKVRIWKHGDWHRIWKLV$JUHHPHQWWKURXJKQRIDXOWRIWKH&RQVWUXFWLRQ0DQDJHUWKH&RQVWUXFWLRQ0DQDJHU¶V RQSURMHFWE\SURMHFWEDVLV FRPSHQVDWLRQIRU3UHFRQVWUXFWLRQ3KDVHVHUYLFHVVKDOOEHHTXLWDEO\DGMXVWHG 3D\PHQWV 8QOHVVRWKHUZLVHDJUHHGSD\PHQWVIRUVHUYLFHVVKDOOEHPDGHPRQWKO\LQSURSRUWLRQWRVHUYLFHVSHUIRUPHG 3D\PHQWVDUHGXHDQGSD\DEOHXSRQSUHVHQWDWLRQRIWKH&RQVWUXFWLRQ0DQDJHU¶VLQYRLFH3XUVXDQWWRWKH3URPSW 3D\PHQWRI/RFDO*RYHUQPHQW%LOOV0LQQHVRWD6WDWXWHV6HFWLRQIDWWKHOHJDOUDWHSUHYDLOLQJIURPWLPHWRWLPHDWWKHSULQFLSDOSODFHRIEXVLQHVV RIWKH&RQVWUXFWLRQ0DQDJHU [[228,2494,915,2530][7][,I,][Times New Roman]] ,QVHUWUDWHRIPRQWKO\RUDQQXDOLQWHUHVWDJUHHGXSRQ [[918,2494,926,2530][7][,I,][Times New Roman]] ©ª©SHUDQQXPª $,$'RFXPHQW$±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV GUDIWZDVSURGXFHGDW $57,&/(&203(16$7,21)25&216758&7,213+$6(6(59,&(6 &RQWUDFW6XP 7KH2ZQHUVKDOOSD\WKH&RQVWUXFWLRQ0DQDJHUWKH&RQWUDFW6XPLQFXUUHQWIXQGVIRUWKH&RQVWUXFWLRQ 0DQDJHU¶VSHUIRUPDQFHRIWKH&RQWUDFWDIWHUH[HFXWLRQRIWKH*XDUDQWHHG0D[LPXP3ULFH$PHQGPHQW7KH&RQWUDFW &RPPHQWHG>-3@ 7KHIHHIRUFRQVWUXFWLRQSKDVH 6XPLVWKH&RVWRIWKH:RUNDVGHILQHGLQ$UWLFOHHFWVSHFLILF PRUHUHTXLUHGVWDIILQJ,QWKHHYHQWWKDWVWDIILQJSODQFKDQJHVDUHUHTXLUHGWKHKRXUVIRUHDFKVWDIIPHPEHUZLOOEH LWHPVWRLQVHUWKHUH QHJRWLDWHGDQGZLOOEHDSSOLHGWRWKHUDWHVOLVWHGLQ([KLELW;ª &RPPHQWHG>-35@ 7KHIHHVOLVWHGLQVHFWLRQ /LPLWDWLRQVLIDQ\RQD6XEFRQWUDFWRU¶VRYHUKHDGDQGSURILWIRULQFUHDVHVLQWKHFR VWRILWVSRUWLRQRIWKH:RUNVKDOOEHLQFOXVLYHRIRIILFHRYHUKHDGQRWVSHFLILFDOO\OLVWHGLQ WKHVWDIILQJSODQWKHVLWHRIILFHDQGDVVRFLDWHGRIILFH H[SHQVHVWRROVDQGHTXLSPHQWYDOXHGDWOHVVWKDQ ©IRUODERUDQGPDWHULDOFRPSOHWHGRUSXUFKDVHGGLUHFWO\E\WKH6XEFRQWUDFWRUDQGIRUZRUNWKDWLVFRPSOHWHG FHOOSKRQHVODSWRSVWDEOHWVVXSHULQWHQGHQWWUXFNDQG E\6XE&RQWUDFWRUVª DVVRFLDWHGPDLQWHQDQFHVXSHULQWHQGHQWWRROVGDWD SURFHVVLQJSRVWDJHVRIWZDUHSURMHFWPDQDJHPHQWSODWIRUP 5HQWDOUDWHVIRU&RQVWUXFWLRQ0DQDJHURZQHGHTXLSPHQWVKDOOQRWH[FHHG©ªSHUFHQW ©BBBª RIWKH IHHVHOHFWURQLFSD\PHQWV\VWHPVOHJDOIHHVDVVRFLDWHGZLWK VWDQGDUGUHQWDOUDWHSDLGDWWKHSODFHRIWKH3URMHFW FRQWUDFWQHJRWLDWLRQRUVLPLODUFKDUJHVWRWKRVHOLVWHGDERYH 1RDGGLWLRQDOSHUFHQWDJHEDVHGIHHVZLOOEHFRQVLGHUHGRWKHU /LTXLGDWHGGDPDJHVLIDQ\ WKDQJHQHUDOOLDELOLW\DQGERQGFRVWV [[228,1677,973,1713][7][,I,][Times New Roman]] ,QVHUWWHUPVDQGFRQGLWLRQVIRUOLTXLGDWHGGDPDJHVLIDQ\ [[975,1677,983,1713][7][,I,][Times New Roman]] 5HLPEXUVDEOHH[SHQVHVDUHWREHSURYLGHGDWFRVWVZLWK LQYRLFHEDFNXSSURYLGHGZLWKHDFKSD\PHQWDSSOLFDWLRQWR ©1$ª IDFLOLWDWHWKHFRPSOHWLRQRIWKH:RUN5HLPEXUVDEOH H[SHQVHVLQFOXGHVXFKLWHPVDVWHPSRUDU\WRLOHWVGXPSVWHUV PLJKWUHVXOWLQDFKDQJHWRWKH&RQWUDFW [[1638,1854,1690,1890][7][,I,][Times New Roman]]6XP [[1691,1854,1708,1890][7][,I,][Times New Roman]] [[1708,1854,1716,1890][7][,I,][Times New Roman]] IRUWRROVYDOXHGDWPRUHWKDQVQRZUHPRYDOZDWHU SXPSLQJWHPSRUDU\VDIHW\SURYLVLRQVVDIHW\VXSSOLHV ©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±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV GUDIWZDVSURGXFHGDW 7KHIHHSHUFHQWDJHIRUJHQHUDOOLDELOLW\WREHDSSOLHGWRWKH&RVWRIWKH:RUNLV; )RUPDWWHG+LJKOLJKW 7KHIHHSHUFHQWDJHIRUSD\PHQWDQGSHUIRUPDQFHERQGVIRUWKH:RUNRIWKLVFRQWUDFWLV; )RUPDWWHG+LJKOLJKW ª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³*03´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imes New Roman]]&RQVWUXFWLRQ0DQDJHUDW5LVN)HH6XPPDU\ :RUNSHU([KLELWB&±7KLVLQFOXGHVODERUSURYLGHGIURPDQ\ORFDWLRQDV &RPPHQWHG>0:@ ([KLELWVWREHUHYLHZHGDQG ORQJDVLWLVGLUHFWO\UHODWHGWRWKH3URMHFW OHWWHULQJFRQIRUPHGRQDSHUFRQWUDFWEDVLV &RPPHQWHG>-3HGUDWHVIRUODERUFRVWVLQOLHXRIDFWXDOFRVWVDUHSURYLGHGLQWKLV$JUHHPHQWWKHUDWHVVKDOOUHPDLQ XQFKDQJHGWKURXJKRXWWKHGXUDWLRQRIWKLV$JUHHPHQWXQOHVVWKHSDUWLHVH[HFXWHD0RGLILFDWLRQ KWVDULVLQJIURPUHTXLUHPHQWVRIWKH &RQWUDFW'RFXPHQWVSD\PHQWVPDGHLQDFFRUGDQFHZLWKOHJDOMXGJPHQWVDJDLQVWWKH&RQVWUXFWLRQ0DQDJHUUHVXOWLQJ IURPVXFKVXLWVRUFODLPVDQGSD\PHQWVRIVHWWOHPHQWVPDGHZLWKWKH2ZQHU¶VF RQVHQWXQOHVVWKH&RQVWUXFWLRQ 0DQDJHUKDGUHDVRQWREHOLHYHWKDWWKHUHTXLUHGGHVLJQSURFHVVRUSURGXFWZDVDQLQIULQJHPHQWRIDFRS\ULJKWRUD SDWHQWDQGWKH&RQVWUXFWLRQ0DQDJHUIDLOHGWRSURPSWO\IXUQLVKVXFKLQIRUPDWLRQWRWKH$UFKLWHFWDVUHTXLUHGE\$UWLFOH RI$,$'RFXPHQW$± VWUXFWLRQ0DQDJHU $57,&/(',6&281765(%$7(6$1'5()81'6 &DVKGLVFRXQWVREWDLQHGRQSD\PHQWVPDGHE\WKH&RQVWUXFWLRQ0DQDJHUVKDOODFFUXHWRWKH2ZQHULI EHIRUH PDNLQJWKHSD\PHQWWKH&RQVWUXFWLRQ0DQDJHULQFOXGHGWKHDPRXQWWREHSDLGOHVVVXFKGLVFRXQWLQDQ$SSOLFDWLRQ IRU3D\PHQWDQGUHFHLYHGSD\PHQWIURPWKH2ZQHURU WKH2ZQHUKDVGHSRVLWHGIXQGVZLWKWKH&RQVWUXFWLRQ 0DQDJHUZLWKZKLFKWRPDNHSD\PHQWVRWKHUZLVHFDVKGLVFRXQWVVKDOODFFUXHWRWKH&RQVWUXFWLRQ0DQDJHU7UDGH GLVFRXQWVUHEDWHVUHIXQGVDQGDPRXQWVUHFHLYHGIURPVDOHVRIVXUSOXVPDWHULDOVDQGHTXLSPHQWVKDOODFFUXHWRWKH 2ZQHUDQGWKH&RQVWUXFWLRQ0DQDJHUVKDOOPDNHSURYLVLRQVVRWKDWWKH\FDQEHREWDLQHG $PRXQWVWKDWDFFUXHWRWKH2ZQHULQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6HFWLRQVKDOOEHFUHGLWHGWRWKH2ZQHU DVDGHGXFWLRQIURPWKH&RVWRIWKH:RUN $57,&/(68%&2175$&76$1'27+(5$*5((0(176 &RQVWUXFWLRQ0DQDJHUVKDOOHQWHULQWR6XEFRQWUDFWVDQGRWKHUDJUHHPHQWVQHFHVVDU\WRSHUIRUPWKH:RUNUHTXLUHG LQWKH&RQWUDFW'RFXPHQWVSXUVXDQWWR0LQQHVRWD6WDWXWHV6HFWLRQUFKLWHFWRUDSSURYDORUREMHFWLRQE\WKH2ZQHUVKDOOQRWUHOLHYHWKH&RQVWUXFWLRQ0DQDJHURILWV &RQVWUXFWLRQ0DQDJHU¶VOLVWRISURSRVHGVXEFRQWUDFWRUVDQG VXSSOLHUVLQFRQVXOWDWLRQZLWKWKH$UFKLWHFWDQGVXEMHFWWR UHVSRQVLELOLW\WRSHUIRUPWKH:RUNLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWV7KH&RQVWUXFWLRQ0DQDJHUVKDOOQRWEH 6HFWLRQWRREMHFWWRDQ\VXEFRQWUDFWRURUVXSSOLHU UHTXLUHGWRFRQWUDFWZLWKDQ\RQHWRZKRPWKH&RQVWUXFWLRQ0DQDJHUKDVUHDVRQDEOHREMHFWLRQ :KHQDVSHFLILFVXEFRQWUDFWRURUVXSSOLHU LVUHFRPPHQGHGWRWKH2ZQHUE\WKH&RQVWUXFWLRQ0DQDJHU LV TXDOLILHGWRSHUIRUPWKDWSRUWLRQRIWKH:RUNDQG KDVVXEPLWWHGDELGWKDWFRQIRUPVWRWKHUHTXLUHPHQWVRIWKH &RQWUDFW'RFXPHQWVZLWKRXWUHVHUYDWLRQVRUH[FHSWLRQVEXWWKH2ZQHUUHTXLUHVWKDWDQRWKHUELGEHDFFHSWHGWKHQWKH &RQVWUXFWLRQ0DQDJHUPD\UHTXLUHWKDWD&KDQJH2UGHUEHLVVXHGWRDGMXVWWKH*XDUDQWHHG0D[LPXP3ULFHE\WKH GLIIHUHQFHEHWZHHQWKHELGRIWKHSHUVRQRUHQWLW\UHFRPPHQGHGWRWKH2ZQHUE\WKH&RQVWUXFWLRQ0DQDJHUDQGWKH DPRXQWRIWKHVXEFRQWUDFWRURWKHUDJUHHPHQWDFWXDOO\VLJQHGZLWKWKHSHUVRQRUHQWLW\GHVLJQDWHGE\WKH2ZQHU 6XEFRQWUDFWVRURWKHUDJUHHPHQWVVKDOOFRQIRUPWRWKHDSSOLFDEOHSD\PHQWSURYLVLRQVRIWKLV$JUHHPHQWDQGVKDOO QRWEHDZDUGHGRQWKHEDVLVRIFRVWSOXVDIHHZLWKRXWWKH2ZQHU¶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¶V DXGLWRUVVKDOOGXULQJUHJXODUEXVLQHVVKRXUVDQGXSRQUHDVRQDEOHQRWLFHEHDIIRUGHGDFFHVVWRDQGVKDOOEHSHUPLWWHGWR DXGLWDQGFRS\WKH&RQVWUXFWLRQ0DQDJHU¶VUHFRUGVDQGDFFRXQWVLQFOXGLQJFRPSOHWHGRFXPHQWDWLRQVXSSRUWLQJ DFFRXQWLQJHQWULHVERRNVMREFRVWUHSRUWVFRUUHVSRQGHQFHLQVWUXFWLRQVGUDZLQJVUHFHLSWVVXEFRQWUDFWV 6XEFRQWUDFWRU¶VSURSRVDOV6XEFRQWUDFWRU¶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±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV ©1$ª 2ZQHUSD\PHQWREOLJDWLRQVVKDOOEHJRYHUQHGE\WKH3URPSW3D\PHQW$FW 'HOHWHG 3URYLGHGWKDWDQ$SSOLFDWLRQIRU3D\PHQWLV [[228,753,1251,789][7][,I,][Times New Roman]] )HGHUDOVWDWHRUORFDOODZVPD\UHTXLUHSD\PHQWZLWKLQDFHUWDLQSHULRGRIWLPH [[1253,753,1261,789][7][,I,][Times New Roman]] UHFHLYHGE\WKH$UFKLWHFWQRWODWHUWKDQWKH©ªGD\RID PRQWKWKH2ZQHUVKDOOPDNHSD\PHQWRIWKHDPRXQW FHUWLILHGWRWKH&RQVWUXFWLRQ0DQDJHUQRWODWHUWKDQWKH©ª :LWKHDFK$SSOLFDWLRQIRU3D\PHQWWKH&RQVWUXFWLRQ0DQDJHUVKDOOVXEPLWSD\UROOVSHWW\FDVKDFFRXQWVUHFHLSWHG GD\RIWKH©ªPRQWK,IDQ$SSOLFDWLRQIRU3D\PHQWLV LQYRLFHVRULQYRLFHVZLWKFKHFNYRXFKHUVDWWDFKHGDQGDQ\RWKHUHYLGHQFHUHTXLUHGE\WKH2ZQHURU$UFKLWHFWWRGHPRQVWUDWH UHFHLYHGE\WKH$UFKLWHFWDIWHUWKHDSSOLFDWLRQGDWHIL[HG WKDWSD\PHQWVDOUHDG\PDGHE\WKH&RQVWUXFWLRQ0DQDJHURQDFFRXQWRIWKH&RVWRIWKH:RUNHTXDORUH[FHHGSURJUHVV DERYHSD\PHQWRIWKHDPRXQWFHUWLILHGVKDOOEHPDGHE\WKH SD\PHQWVDOUHDG\UHFHLYHGE\WKH&RQVWUXFWLRQ0DQDJHUSOXVSD\UROOVIRUWKHSHULRGFRYHUHGE\WKHSUHVHQW$SSOLFDWLRQIRU 2ZQHUQRWODWHUWKDQ©ª ©ª GD\VDIWHUWKH$UFKLWHFW 3D\PHQWOHVVWKDWSRUWLRQRIWKHSURJUHVVSD\PHQWVDWWULEXWDEOHWRWKH&RQVWUXFWLRQ0DQDJHU¶V)HH UHFHLYHVWKH$SSOLFDWLRQIRU3D\PHQW (DFK$SSOLFDWLRQIRU3D\PHQWVKDOOEHEDVHGRQWKHPRVWUHFHQWVFKHGXOHRIYDOXHVVXEPLWWHGE\WKH &RQVWUXFWLRQ0DQDJHULQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWV7KHVFKHGXOHRIYDOXHVVKDOODOORFDWHWKHHQWLUH *XDUDQWHHG0D[LPXP3ULFHDPRQJ WKHYDULRXVSRUWLRQVRIWKH:RUN DQ\FRQWLQJHQF\IRUFRVWVWKDWDUH LQFOXGHGLQWKH*XDUDQWHHG0D[LPXP3ULFHEXWQRWRWKHUZLVHDOORFDWHGWRDQRWKHUOLQHLWHPRULQFOXGHGLQD&KDQJH 2UGHUDQG WKH&RQVWUXFWLRQ0DQDJHU¶V)HH 7KHVFKHGXOHRIYDOXHVVKDOOEHSUHSDUHGLQVXFKIRUPDQGVXSSRUWHGE\VXFKGDWDWRVXEVWDQWLDWHLWVDFFXUDF\ DVWKH$UFKLWHFWPD\UHTXLUH7KHVFKHGXOHRIYDOXHVVKDOOEHXVHGDVDEDVLVIRUUHYLHZLQJWKH&RQVWUXFWLRQ0DQDJHU¶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¶V SURIHVVLRQDOMXGJPHQWWREHUHDVRQDEO\MXVWLILHGDQG 7KH&RQVWUXFWLRQ0DQDJHU¶V)HHFRPSXWHGXSRQWKH&RVWRIWKH:RUNGHVFULEHGLQWKHSUHFHGLQJ 6HFWLRQV 7KHDPRXQWLIDQ\IRU:RUNWKDWUHPDLQVXQFRUUHFWHGDQGIRUZKLFKWKH$UFKLWHFWKDVSUHYLRXVO\ ZLWKKHOGD&HUWLILFDWHIRU3D\PHQWDVSURYLGHGLQ$UWLFOHRI$,$'RFXPHQW$±oman]] ,IWKHUHWDLQDJHHVWDEOLVKHGLQ6HFWLRQLVWREHPRGLILHGSULRUWR6XEVWDQWLDO&RPSOHWLRQRIWKHHQWLUH:RUN [[228,1570,724,1606][7][,I,][Times New Roman]]LQVHUWSURYLVLRQVIRUVXFKPRGLILFDWLRQ [[725,1570,733,1606][7][,I,][Times New Roman]] ©1RQHª 8SRQ6XEVWDQWLDO&RPSOHWLRQRIWKH:RUNWKH&RQVWUXFWLRQ0DQDJHUPD\VXEPLWDQ$SSOLFDWLRQIRU'HOHWHG ([FHSWDVVHWIRUWKLQWKLV6HFWLRQXSRQ 3D\PHQWWKDWLQFOXGHVWKHUHWDLQDJHZLWKKHOGIURPSULRU$SSOLFDWLRQVIRU3D\PHQWSXUVXDQWWRWKLV6HFWLRQ 'HOHWHG 7KH$SSOLFDWLRQIRU3D\PHQWVXEPLWWHGDW ,QVHUWDQ\RWKHUFRQGLWLRQVIRUUHOHDVHRIUHWDLQDJHVXFKDVXSRQFRPSOHWLRQRIWKH2ZQHU¶VDXGLWDQGUHFRQFLOLDWLRQ 6XEVWDQWLDO&RPSOHWLRQVKDOOQRWLQFOXGHUHWDLQDJHDV [[228,1819,588,1855][7][,I,][Times New Roman]]XSRQ6XEVWDQWLDO&RPSOHWLRQ [[589,1819,606,1855][7][,I,][Times New Roman]] [[607,1819,615,1855][7][,I,][Times New Roman]] IROORZV ©3XUVXDQWWR0LQQHVRWD6WDWXWHV6HFWLRQD\ DQ\DPRXQWVZLWKKHOGXQGHUFODXVH DIWHUVXEPLVVLRQRIDOOILQDOSDSHUZRUNDVGHWHUPLQHGE\2ZQHUª ,IILQDOFRPSOHWLRQRIWKH:RUNLVPDWHULDOO\GHOD\HGWKURXJKQRIDXOWRIWKH&RQVWUXFWLRQ0DQDJHUWKH2ZQHU VKDOOSD\WKH&RQVWUXFWLRQ0DQDJHUDQ\DGGLWLRQDODPRXQWVLQDFFRUGDQFHZLWK$UWLFOHRI$,$'RFXPHQW$± ,QWDNLQJDFWLRQRQWKH&RQVWUXFWLRQ0DQDJHU¶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¶V DXGLWRUVDFWLQJLQWKHVROHLQWHUHVWRIWKH2ZQHU )LQDO3D\PHQW )LQDOSD\PHQWVKDOOEHPDGHE\WKH2ZQHUWRWKH&RQVWUXFWLRQ0DQDJHUQRWPRUHWKDQWKLUW\ GD\VDIWHU'HOHWHG FRQVWLWXWLQJWKHHQWLUHXQSDLGEDODQFHRIWKH WKHGDWHWKDWDOORIWKHIROORZLQJFRQGLWLRQVKDYHEHHQPHW &RQWUDFW6XP WKH&RQWUDFWKDVEHHQIXOO\SHUIRUPHGE\WKH&RQVWUXFWLRQ0DQDJHUH[FHSWIRUWKH&RQVWUXFWLRQ 'HOHWHG ZKHQ 0DQDJHU¶VUHVSRQVLELOLW\WRFRUUHFWQRQFRQIRUPLQJ:RUNDVSURYLGHGLQ6HFWLRQRI$±FWLRQ0DQDJHUKDVDVVHPEOHGDQGSURYLGHGWRWKH2ZQHULQDERXQGFRPSLODWLRQDOO 'HOHWHG DQGDILQDO$SSOLFDWLRQIRU3D\PHQWDQG ZDUUDQWLHVDQGRSHUDWLRQVPDQXDOVDSSOLFDEOHWRWKH3URMHFWDQG 'HOHWHG WKH&RQVWUXFWLRQ0DQDJHUKDVGHOLYHUHGWRWKH$UFKLWHFWDFRPSOHWHVHWRIUHGOLQHGUHFRUGGUDZLQJV LQDFFRUGDQFHZLWK6HFWLRQ LQGLFDWLQJFKDQJHVWRWKH&RQVWUXFWLRQ'RFXPHQWVGXULQJFRQVWUXFWLRQ :LWKLQGD\VRIWKH2ZQHU¶VUHFHLSWRIWKH&RQVWUXFWLRQ0DQDJHU¶VILQDODFFRXQWLQJIRUWKH&RVWRIWKH :RUNWKH2ZQHUVKDOOFRQGXFWDQDXGLWRIWKH&RVWRIWKH:RUNRUQRWLI\WKH$UFKLWHFWWKDWLWZLOOQRWFRQGXFWDQDXGLW ,IWKH2ZQHUFRQGXFWVDQDXGLWRIWKH&RVWRIWKH:RUNWKH2ZQHUVKDOOZLWKLQGD\VDIWHUFRPSOHWLRQRI WKHDXGLWVXEPLWDZULWWHQUHSRUWEDVHGXSRQWKHDXGLWRUV¶ILQGLQJVWRWKH$UFKLWHFW :LWKLQVHYHQGD\VDIWHUUHFHLSWRIWKHZULWWHQUHSRUWGHVFULEHGLQ6HFWLRQRUUHFHLSWRIQRWLFHWKDWWKH 2ZQHUZLOOQRWFRQGXFWDQDXGLWDQGSURYLGHGWKDWWKHRWKHUFRQGLWLRQVRI6HFWLRQKDYHEHHQPHWWKH$UFKLWHFW ZLOOHLWKHULVVXHWRWKH2ZQHUDILQDO&HUWLILFDWHIRU3D\PHQWZLWKDFRS\WRWKH&RQVWUXFWLRQ0DQDJHURUQRWLI\WKH &RQVWUXFWLRQ0DQDJHUDQG2ZQHULQZULWLQJRIWKH$UFKLWHFW¶VUHDVRQVIRUZLWKKR OGLQJDFHUWLILFDWHDVSURYLGHGLQ $UWLFOHRI$,$'RFXPHQW$±VKDOOEHPDGHE\WKH&RQVWUXFWLRQ0DQDJHUZLWKLQGD\VDIWHUWKH &RQVWUXFWLRQ0DQDJ HU¶VUHFHLSWRIDFRS\RIWKH$UFKLWHFW¶VILQDO&HUWLILFDWHIRU3D\PHQW)DLOXUHWRUHTXHVWPHGLDWLRQ ZLWKLQWKLVGD\SHULRGVKDOOUHVXOWLQWKHVXEVWDQWLDWHGDPRXQWUHSRUWHGE\WKH2ZQHU¶VDXGLWRUVEHFRPLQJELQGLQJRQ WKH&RQVWUXFWLRQ0DQDJHU3HQGLQJDILQDOUHVROXWLRQRIWKHGLVSXWHGDPRXQWWKH2ZQHUVKDOOSD\WKH&RQVWUXFWLRQ 0DQDJHUWKHDPRXQWFHUWLILHGLQWKH$UFKLWHFW¶VILQDO&HUWLILFDWHIRU3D\PHQW 7KH2ZQHU¶VILQDOSD\PHQWWRWKH&RQVWUXFWLRQ0DQDJHUVKDOOEHPDGHQRODWHUWKDQGD\VDIWHUWKHLVVXDQFH RIWKH$UFKLWHFW¶VILQDO&HUWLILFDWHIRU3D\PHQWRUDVIROORZV ©ª ,IVXEVHTXHQWWRILQDOSD\PHQWDQGDWWKH2ZQHU¶VUHTXHVWWKH&RQVWUXFWLRQ0DQDJHULQFXUVFRVWVGHVFULEHG LQ6HFWLRQV 3ULFH,IDGMXVWPHQWVWRWKH&RQWUDFW6XPDUHSURYLGHGIRULQ6HFWLRQRI$,$'RFXPHQW$± 3ULRUWRWKHH[HFXWLRQRIWKH*XDUDQWHHG0D[LPXP3ULFH$PHQGPHQWWKH2ZQHUPD\WHUPLQDWHWKLV $JUHHPHQWXSRQQRWOHVVWKDQVHYHQGD\V¶ZULWWHQQRWLFHWRWKH&RQVWUXFWLRQ0DQDJHUIRUWKH2ZQHU¶VFRQYHQLHQFHDQG ZLWKRXWFDXVHDQGWKH&RQVWUXFWLRQ0DQDJHUPD\WHUPLQDWHWKLV$JUHHPHQWXSRQQRWOHVVWKDQVHYHQGD\V¶ZULWWHQ QRWLFHWRWKH2ZQHUIRUWKHUHDVRQVVHWIRUWKLQ$UWLFOHRI$±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±RI$,$'RFXPHQW$±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±UHIHUHQFHLVPDGHLQWKLV $JUHHPHQWWRDSURYLVLRQRI$,$'RFXPHQW$± 3UHYDLOLQJ:DJHDQG$SSUHQWLFHVKLS5HTXLUHPHQWV &RPPHQWHG>0:@ 5HYLHZDQGFRQIRUPH[KLELWVRQD SURMHFWE\SURMHFWEDVLV 6WDWHDQGIHGHUDO SUHYDLOLQJZDJHUDWHVDUHDSSOLFDEOHWRWKLV3URMHFW&RQVWUXFWLRQ0DQDJHUVKDOODQGVKDOO )RUPDWWHG.HHSZLWKQH[W UHTXLUHDOO6XEFRQWUDFWRUVWRFRPSO\ZLWKWKHZDJHDQGKRXUVWDQGDUGVLVVXHGE\WKH0LQQHVRWD'HSDUWPHQWRI/DERU [[1599,753,1671,789][7][,I,][Times New Roman]]HWVHT DQG,QGXVWU\ ³0Q'/,´ SXUVXDQWWRWKH0LQQHVRWD3UHYDLOLQJ:DJH$FW0LQQHVRWD6WDWXWHV6HFWLRQ([KLELW) WKH³)HGHUDO3UHYDLOLQJ:DJH &RPPHQWHG>0:@ &RQILUPH[KLELWVDQGLGHQWLI\ 'HFLVLRQ´ $FRS\RIWKH)HGHUDO3UHYDLOLQJ:DJH'HFLVLRQLVDWWDFKHGKHUHWRDV([KLELW) DSSURSULDWHO\IRUHDFKDJUHHPHQW )RUPDWWHG+LJKOLJKW 7KH&RQVWUXFWLRQ0DQDJHUVKDOODQGVKDOOSD\DOOFRYHUHGZRUNHUVZHHNO\DQGUHTXLUHDOO6XEFRQWUDFWRUV WRVXEPLWFHUWLILHGSD\UROOLQWRWKH&LW\RI5RFKHV WHU¶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¶VZRUNIRUFHSDUWLFLSDWLRQJRDOV7KHPLQLPXP )RUPDWWHG+LJKOLJKW HPSOR\PHQWJRDOVIRU&RQWUDFWRUDQGDQ\VXEFRQWUDFWRUYHQGRUVKDOOEHDVIROORZVBBRIWKHWRWDO3URMHFW )RUPDWWHG+LJKOLJKW FRQVWUXFWLRQKRXUVDUHWREHSHUIRUPHGE\IHPDOHVBBBE\PLQRULW\ZRUNHUV7KH&RQVWUXFWLRQ0DQDJHUDQGDOO 6XEFRQWUDFWRUVZLOOUHSRUWZRUNIRUFHSDUWLFLSDWLRQWKURXJKFHUWLILHGSD\UROOHQWHUHGLQWRWKH&LW\RI5 RFKHVWHU¶VZHE &RPPHQWHG>:(@ PD\EHGLIIHUHQWRQHDFKSURMHFW EDVHGUHSRUWLQJV\VWHP/&3WUDFNHUDQGZLWKWKHGRFXPHQWVUHIHUHQFHGLQ([KLELW*7KH&RQVWUXFWLRQ0DQDJHUDQGLWV )RUPDWWHG+LJKOLJKW 6XEFRQWUDFWRUVVKDOOPDLQWDLQWKHDSSURSULDWHUHFRUGVWRGRFXPHQWWKHLUJRRGIDLWKHIIRUWVWRFRPSO\ZLWKWKLV6HFWLRQ DQGSURGXFHVXFKUHFRUGVLIDXGLWHG )RUPDWWHG+LJKOLJKW 7DUJHWHG%XVLQHVV8WLOL]DWLRQ*RDOV 7KH&RQVWUXFWLRQ0DQDJHULWV6XEFRQWUDFWRUVDQGVXSSOLHUVPXVW PDNHEHVWFRPPHUFLDOHIIRUWVWRFRPSO\ZLWKWKH7DUJHWHG%XVLQHVV8WLOL]DWLRQ*RDOV ³7%*RDOV´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±DW 7KH2ZQHUPD\ZLWKRXWFRQVHQWRIWKH&RQVWUXFWLRQ0DQDJHUDVVLJQWKH&RQWUDFWWRDOHQGHUSURYLGLQJ FRQVWUXFWLRQILQDQFLQJIRUWKH3URMHFWLIWKHOHQGHUDVVXPHVWKH2ZQHU¶VULJKWVDQGREOLJDWLRQVXQGHUWKH&RQWUDFW 'RFXPHQWV7KH&RQVWUXFWLRQ0DQDJHUVKDOOH[HFXWHDOOFRQVHQWVUHDVRQDEO\UHTXLUHGWRIDFLOLWDWHWKHDVVLJQPHQW ,QVXUDQFHDQG%RQGV ,QVXUDQFHDQGERQGVSURYLGHGIRUWKLV3URMHFWVKDOOEHGHVFULEHGLQWKLV$UWLFOH([KLELW%WRWKLV&RQWUDFWDQGLQ $UWLFOHRIWKH$±URYLGH QDUURZHUFRYHUDJHWKDQWKHSULPDU\SROLF\7KHH[FHVVSROLF\VKDOOQRWUHTXLUHWKHH[KDXVWLRQRIWKHXQGHUO\LQJOLPLWV RQO\WKURXJKWKHDFWXDOSD\PHQWE\WKHXQGHUO\LQJLQVXUHUV :RUNHUV¶&RPSHQVDWLRQDWVWDWXWRU\OLPLWVDQG(PSOR\HUV/LDELOLW\ZLWKSROLF\OLPLWVQRWOHVVWKDQ©)LYH +XQGUHG7KRXVDQGª ©ª HDFKDFFLGHQW©)LYH+XQGUHG7KRXVDQGª ©ª HDFKHPSOR\HHDQG© 2QH0LOOLRQª ©ª SROLF\OLPLW 3URIHVVLRQDO/LDELOLW\FRYHULQJQHJOLJHQWDFWVHUURUVDQGRPLVVLRQVLQWKHSHUIRUPDQFHRISURIHVVLRQDO VHUYLFHVZLWKSROLF\OLPLWVRIQRWOHVVWKDQ©2QH0LOOLRQª ©ª SHUFODLPDQG©7ZR0LOOLRQª © ª LQWKHDJJUHJDWH 2WKHU,QVXUDQFH [[228,1925,1018,1961][7][,I,][Times New Roman]] /LVWEHORZDQ\RWKHULQVXUDQFHFRYHUDJHWREHSURYLGHGE\WKH [[1019,1925,1301,1961][7][,I,][Times New Roman]]&RQVWUXFWLRQ0DQDJHU [[1302,1925,1310,1961][7][,I,][Times New Roman]] [[1309,1925,1639,1961][7][,I,][Times New Roman]]DQGDQ\DSSOLFDEOHOLPLWV [[1640,1925,1648,1961][7][,I,][Times New Roman]] &RYHUDJH/LPLWV 7%' DLQWDLQLQVXUDQFHDVVHWIRUWKLQ$,$'RFXPHQW$±6WDQGDUG)RUPRI$JUHHPHQW%HWZHHQ 2ZQHUDQG&RQVWUXFWLRQ0DQDJHUDV&RQVWUXFWRUZKHUHWKHEDVLVRISD\PHQWLVWKH&RVWRIWKH:RUN3OXVD)HHZLWKD *XDUDQWHHG0D[LPXP3ULFH([KLELW%,QVXUDQFHDQG%RQGVDQGHOVHZKHUHLQWKH&RQWUDFW'RFXPHQWV $,$'RFXPHQW$±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV GUDIWZDVSURGXFHGDW 7KH&RQVWUXFWLRQ0DQDJHUVKDOOSURYLGHERQGVDVVHWIRUWKLQ$,$'RFXPHQW$±([KLELW%DQG HOVHZKHUHLQWKH&RQWUDFW'RFXPHQWV 1RWLFHLQHOHFWURQLFIRUPDWSXUVXDQWWR$UWLFOHRI$,$'RFXPHQW$±V$JUHHPHQW PD\EHDPHQGHGRQO\E\ZULWWHQLQVWUXPHQWVLJQHGE\ERWK2ZQHUDQG&RQVWUXFWLRQ0DQDJHU 7KHIROORZLQJGRFXPHQWVFRPSULVHWKH$JUHHPHQW $,$'RFXPHQW$±6WDQGDUG)RUPRI$JUHHPHQW%HWZHHQ2ZQHUDQG&RQVWUXFWLRQ0DQDJHU DV&RQVWUXFWRUZKHUHWKHEDVLVRISD\PHQWLVWKH&RVWRIWKH:RUN3OXVD)HHZLWKD*XDUDQWHHG 0D[LPXP3ULFHDVPRGLILHG $,$'RFXPHQW$([KLELW$*XDUDQWHHG0D[LPXP3ULFH$PHQGPHQWLIH[HFXWHG &RPPHQWHG>-3@ ([KLELW&+RXUO\5DWHV $,$'RFXPHQW$±([KLELW%,QVXUDQFHDQG%RQGV ([KLELW'(TXLSPHQW5HQWDO6FKHGXOH $,$'RFXPHQW$± VDPSOHIRUPVWKH&RQVWUXFWLRQ0DQDJHU¶VELGRUSURSRVDOSRUWLRQVRI$GGHQGDUHODWLQJWRELGGLQJRU [[409,646,1490,682][7][,I,][Times New Roman]]SURSRVDOUHTXLUHPHQWVDQGRWKHULQIRUPDWLRQIXUQLVKHGE\WKH2ZQHULQDQWLFLSDWLRQR [[1487,646,1724,682][7][,I,][Times New Roman]]IUHFHLYLQJELGVRU [[409,681,1637,717][7][,I,][Times New Roman]]SURSRVDOVDUHQRWSDUWRIWKH&RQWUDFW'RFXPHQWVXQOHVVHQXPHUDWHGLQWKLV$JUHHPHQW$Q\VXFK [[412,717,1477,753][7][,I,][Times New Roman]]GRFXPHQWVVKRXOGEHOLVWHGKHUHRQO\LILQWHQGHGWREHSDUWRIWKH&RQWUDFW'RFXPHQWV [[1478,717,1495,753][7][,I,][Times New Roman]] [[1496,717,1504,753][7][,I,][Times New Roman]] © ([KLELW$>UHVHUYHGIRU*03$PHQGPHQW@ ([KLELW%±$,$'RFXPHQW$([KLELW%±,QVXUDQFHDQG%RQGV >LQVHUWDOORWKHUH[KLELWVUHIHUHQFHGDERYHLQFOXGLQJSUHYDLOLQJZDJHZRUNIRUFHSDUWLFLSDWLRQJRDOV )RUPDWWHG+LJKOLJKW WDUJHWHGEXVLQHVVJRDOVHWF@ª 7KLV$JUHHPHQWLVHQWHUHGLQWRDVRIWKHGD\DQG\HDUILUVWZULWWHQDERYH &RPPHQWHG>-3@ $GGFOHUN 2:1(5[[366,1189,505,1225][7][,I,][Times New Roman]] 6LJQDWXUH [[1034,1189,1377,1225][7][,,][FEFE8D64BA6]]&216758&7,210$1$*(5 [[1384,1189,1524,1225][7][,I,][Times New Roman]] 6LJQDWXUH ©ª©ª©ª©ª [[262,1279,559,1315][7][,I,][Times New Roman]] 3ULQWHGQDPHDQGWLWOH [[560,1279,568,1315][7][,I,][Times New Roman]] [[961,1279,969,1315][7][,I,][Times New Roman]] [[1034,1279,1331,1315][7][,I,][Times New Roman]] 3ULQWHGQDPHDQGWLWOH [[1332,1279,1340,1315][7][,I,][Times New Roman]] )RUPDWWHG7DEOH 2:1(5[[369,1362,508,1398][7][,I,][Times New Roman]] 6LJQDWXUH ©ª©&LW\&OHUNª [[265,1435,562,1471][7][,I,][Times New Roman]] 3ULQWHGQDPHDQGWLWOH [[562,1435,570,1471][7][,I,][Times New Roman]] [[262,1471,270,1507][7][,I,][Times New Roman]] [[961,1471,969,1507][7][,I,][Times New Roman]] [[1034,1471,1042,1507][7][,I,][Times New Roman]] $,$'RFXPHQW$±&RS\ULJKWDQG$OOULJKWVUHVHUYHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQWUDFW'RFXPHQWV´DUHWUDGHPDUNVRI7KH$PHULFDQ,QVWLWXWHRI$UFKL WHFWV7KLV $,$'RFXPHQW$± 7(50,1$7,21256863(16,212)7+(&2175$&7 &/$,06$1'',6387(6 $,$'RFXPHQW$± ,1'(;$UFKLWHFW¶V$XWKRULW\WR5HMHFW:RUN 7RSLFVDQGQXPEHUVLQEROGDUH6HFWLRQKHDGLQJV $UFKLWHFW¶V&RS\ULJKW &HUWLILFDWHVIRU3D\PHQW &RQFHDOHGRU8QNQRZQ&RQGLWLRQV WUDFW'RFXPHQWV 'HILQLWLRQRI &RQWUDFW6XP &RPPHQFHPHQWRIWKH:RUN&RQGLWLRQV5HODWLQJWR &RQWUDFWRU¶V(PSOR\HHV'DPDJHWR&RQVWUXFWLRQRI2ZQHURU6HSDUDWH &RQWUDFWRUV &RQWUDFWRU¶V/LDELOLW\,QVXUDQFH'DPDJHWRWKH:RUN &RQWUDFWRU¶V5HODWLRQVKLSZLWK6HSDUDWH&RQWUDFWRUV'DPDJHV&ODLPVIRU DQG2ZQHU¶V)RUFHV ,QVXUDQFH3URSHUW\ ([WHQVLRQVRI7LPH 0LQRU&KDQJHVLQWKH:RUN2ZQHU¶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¶VELGRU SURSRVDORUSRUWLRQVRI$GGHQGDUHODWLQJWRELGGLQJRUSURSRVDOUHTXLUHPHQWV 7KH&RQWUDFW 7KH&RQWUDFW'RFXPHQWVIRUPWKH&RQWUDFWIRU&RQVWUXFWLRQ7KH&RQWUDFWUHSUHVHQWVWKHHQWLUHDQGLQWHJUDWHG DJUHHPHQWEHWZHHQWKHSDUWLHVKHUHWRDQGVXSHUVHGHVSULRUQHJRWLDWLRQVUHSUHVHQWDWLRQVRUDJUHHPHQWVHLWKHU ZULWWHQRURUDO7KH&RQWUDFWPD\EHDPHQGHGRUPRGLILHGRQO\E\D0RGLILFDWLRQ7KH&RQWUDFW'RFXPHQWVVKDOO QRWEHFRQVWUXHGWRFUHDWHDFRQWUDFWXDOUHODWLRQVKLSRIDQ\NLQG EHWZHHQWKH&RQWUDFWRUDQGWKH$UFKLWHFWRUWKH $UFKLWHFW¶VFRQVXOWDQWV EHWZHHQWKH2ZQHUDQGD6XEFRQWUDFWRURUD6XEVXEFRQWUDFWRU EHWZHHQWKH2ZQHU DQGWKH$UFKLWHFWRUWKH$UFKLWHFW¶VFRQVXOWDQWVRU EHWZHHQDQ\SHUVRQVRUHQWLWLHVRWKHUWKDQWKH2ZQHUDQGWKH &RQWUDFWRU7KH$UFKLWHFWVKDOOKRZHYHUEHHQWLWOHGWRSHUIRUPDQFHDQGHQIRUFHPHQWRIREOLJDWLRQVXQGHUWKH &RQWUDFWLQWHQGHGWRIDFLOLWDWHSHUIRUPDQFHRIWKH$UFKLWHFW¶VGXWLHV 'HOHWHG 7KH&RQWUDFWRU 7KHWHUP³&RQWUDFWRU´PHDQVWKH&RQVWUXFWLRQ0DQDJHUDV&RQVWUXFWRUSXUVXDQWWRWKH$6WDQGDUG)RUP $JUHHPHQW%HWZHHQ2ZQHUDQG&RQVWUXFWLRQ0DQDJHUDV&RQVWUXFWRUDVPRGLILHG 7KH:RUN 'HOHWHG 7KHWHUP³:RUN´PHDQVWKHFRQVWUXFWLRQDQGVHUYLFHVUHTXLUHGE\WKH&RQWUDFW'RFXPHQWVZKHWKHUFRPSOHWHGRU SDUWLDOO\FRPSOHWHGDQGLQFOXGHVDOORWKHUODERUPDWHULDOVHTXLSPHQWDQGVHUYLFHVSURYLGHGRUWREHSURYLGHGE\ WKH&RQWUDFWRUWRIXOILOOWKH&RQWUDFWRU¶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±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¶WTXDOLW\PRVWLPSRUWDQW":KLOHRIWHQFRUUHODWHG HQIRUFHDEOH,QVXFKFDVHWKH&RQWUDFW'RFXPHQWVVKDOOEHFRQVWUXHGWRWKHIXOOHVWH[WHQWSHUPLWWHGE\ODZWRJLYH WRFRVW,GRQ¶WNQRZLIWKDWVKRXOGEHWKHHPSKDVLV HIIHFWWRWKHSDUWLHV¶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³DOO´DQG³DQ\´DQG DUWLFOHVVXFKDV³WKH´DQG³DQ´EXWWKHIDFWWKDWDPRGLILHURUDQDUWLFOHLVDEVHQWIURPRQHVWDWHPHQWDQGDSSHDUVLQ DQRWKHULVQRWLQWHQGHGWRDIIHFWWKHLQWHUSUHWDWLRQRIHLWKHUVWDWHPHQW 2ZQHUVKLSDQG8VHRI'UDZLQJV6SHFLILFDWLRQVDQG2WKHU,QVWUXPHQWVRI6HUYLFH 6XEMHFWWRWKH$JUHHPHQWEHWZHHQ2ZQHUDQG$UFKLWHFWWKH$UFKLWHFWDQGWKH$UFKLWHFW¶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¶VRU $UFKLWHFW¶VFRQVXOWDQWV¶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±%XLOGLQJ,QIRUPDWLRQ0RGHOLQJDQG'LJLWDO'DWD([KLELWVKDOOEHDWWKH &RPPHQWHG>-3@ 6XJJHVWRQO\VWULNLQJWKHUHIHUHQFHWR XVLQJRUUHO\LQJSDUW\¶VVROHULVNDQGZLWKRXWOLDELOLW\WRWKHRWKHUSDUW\DQGLW VFRQWUDFWRUVRUFRQVXOWDQWVWKHDXWKRUV (DQG*DQGOHDYHWKHUHVWRIWKHSDUDJUDSK RIRUFRQWULEXWRUVWRWKHEXLOGLQJLQIRUPDWLRQPRGHODQGHDFKRIWKHLUDJHQWVDQGHPSOR\HHV 'HOHWHG DQGWKHUHTXLVLWH$,$'RFXPHQW*± 3URMHFW%XLOGLQJ,QIRUPDWLRQ0RGHOLQJ3URWRFRO)RUP $57,&/(2:1(5 *HQHUDO 7KH2ZQHULVWKHSHUVRQRUHQWLW\LGHQWLILHGDVVXFKLQWKH$JUHHPHQWDQGLVUHIHUUHGWRWKURXJKRXWWKH &RQWUDFW'RFXPHQWVDVLIVLQJXODULQQXPEHU7KH2ZQHUVKDOOLGHQWLI\DUHSUHVHQWDWLYHDXWKRUL]HGWRDFWRQWKH 2ZQHU¶VEHKDOIRQO\ZLWKUHVSHFWWRVSHFLILFPDWWHUVGHOHJDWHGWRWKHUHSUHVHQWDWLYHLQZULWLQJE\WKH2ZQHU¶V JRYHUQ LQJERG\([FHSWDVH[SUHVVO\GHOHJDWHGE\WKH2ZQHU¶VJRYHUQLQJERG\WKH2ZQHU¶VUHSUHVHQWDWLYHKDVQR DXWKRULW\WRDJUHHWRDQ\DGMXVWPHQWVLQWKH&RQWUDFW6XPRU&RQWUDFW7LPH([FHSWDVRWKHUZLVHSURYLGHGLQ 'HOHWHG GHVLJQDWHLQZULWLQJDUHSUHVHQWDWLYHZKRVKDOO 6HFWLRQWKH$UFKLWHFWGRHVQRWKDYHVXFKDXWKRULW\ KDYHH[SUHVVDXWKRULW\WRELQGWKH2ZQHUZLWKUHVSHFWWRDOO PDWWHUVUHTXLULQJWKH2ZQHU¶VDSSURYDORUDXWKRUL]DWLRQ (YLGHQFHRIWKH2ZQHU·V)LQDQFLDO$UUDQJHPHQWV &RPPHQWHG>0:5@ ,WKLQNWKH&0FDQDGGUHVVWKDW 3ULRUWRFRPPHQFHPHQWRIWKH:RUNDQGXSRQZULWWHQUHTXHVWE\WKH&RQWUDFWRUWKH2ZQHUVKDOOIXUQLVKWR LQLWVVXEFRQWUDFWVLILWZRXOGOLNHWR WKH&RQWUDFWRUUHDVRQDEOHHYLGHQFHWKDWWKH2ZQHUKDVPDGHILQDQFLDODUUDQJHPHQWVWRIXOILOOWKH2ZQHU¶V 'HOHWHG 7KHWHUP REOLJDWLRQVXQGHUWKH&RQWUDFW7KH&RQWUDFWRUVKDOOKDYHQRREOLJDWLRQWRFRPPHQFHWKH:RUNXQWLOWKH2ZQHU 'HOHWHG SURYLGHVVXFKHYLGHQFH,IFRPPHQFHPHQWRIWKH:RUNLVGHOD\HGXQGHUWKLV6HFWLRQWKH&RQWUDFW7LPHVKDOO ³2ZQHU´PHDQVWKH2ZQHURUWKH2ZQHU¶V EHH[WHQGHGDSSURSULDWHO\DXWKRUL]HGUHSUHVHQWDWLYH 7KH2ZQHUVKDOOIXUQLVKWRWKH&RQWUDFWRUZLWKLQ )ROORZLQJFRPPHQFHPHQWRIWKH:RUNDQGXSRQZULWWHQUHTXHVWE\WKH&RQWUDFWRUWKH2ZQHUVKDOOIXUQLVK ILIWHHQGD\VDIWHUUHFHLSWRIDZULWWHQUHTXHVWLQIRUPDWLRQ WRWKH&RQWUDFWRUUHDVRQDEOHHYLGHQFHWKDWWKH2ZQHUKDVPDGHILQDQFLDODUUDQJHPHQWVWRIXOILOOWKH2ZQHU¶V QHFHVVDU\DQGUHOHYDQWIRUWKH&RQWUDFWRUWRHYDOXDWHJLYH REOLJDWLRQVXQGHUWKH&RQWUDFWRQO\LI WKH2ZQHUIDLOVWRPDNHSD\PHQWVWRWKH&RQWUDFWRUDVWKH&RQWUDFW QRWLFHRIRUHQIRUFHPHFKDQLF¶VOLHQULJKWV6XFK 'RFX PHQWVUHTXLUH WKH&RQWUDFWRULGHQWLILHVLQZULWLQJDUHDVRQDEOHFRQFHUQUHJDUGLQJWKH2ZQHU¶VDELOLW\WR LQIRUPDWLRQVKDOOLQFOXGHDFRUUHFWVWDWHPHQWRIWKHUHFRUG PDNHSD\PHQWZKHQGXHRU DFKDQJHLQWKH:RUNPDWHULDOO\FKDQJHVWKH&RQWUDFW6XP,IWKH2ZQHUIDLOVWR OHJDOWLWOHWRWKHSURSHUW\RQZKLFKWKH3URMHFWLVORFDWHG SURYLGHVXFKHYLGHQFHDVUHTXLUHGZLWKLQIRXUWHHQGD\VRIWKH&RQWUDFWRU¶VUHTXHVWWKH&RQWUDFWRUPD\ XVXDOO\UHIHUUHGWRDVWKHVLWHDQGWKH2ZQHU¶VLQWHUHVW LPPHGLDWHO\VWRSWKH:RUNDQGLQWKDWHYHQWVKDOOQRWLI\WKH2ZQHUWKDWWKH:RUNKDVVWRSSHG+RZHYHULIWKH WKHUHLQ UHTXHVWLVPDGHEHFDXVHDFKDQJHLQWKH:RUNPDWHULDOO\FKDQJHVWKH&RQWUDFW6XPXQGHU DERYHWKH&RQWUDFWRU PD\LPPHGLDWHO\VWRSRQO\WKDWSRUWLRQRIWKH:RUNDIIHFWHGE\WKHFKDQJHXQWLOUHDVRQDEOHHYLGHQFHLVSURYLGHG,I WKH:RUNLVVWRSSHGXQGHUWKLV6HFWLRQWKH&RQWUDFW7LPHVKDOOEHH[WHQGHGDSSURSULDWHO\DQGWKH&RQWUDFW 6XPVKDOOEHLQFUHDVHGE\WKHDPRXQWRIWKH&RQWUDFWRU¶VUHDVRQDEOHFRVWVRIVKXWGRZQGHOD\DQGVWDUWXSSOXV LQWHUHVWDVSURYLGHGLQWKH&RQWUDFW'RFXPHQWV $IWHUWKH2ZQHUIXUQLVKHVHYLGHQFHRIILQDQFLDODUUDQJHPHQWVXQGHUWKLV6HFWLRQWKH2ZQHUVKDOOQRW PDWHULDOO\YDU\VXFKILQDQFLDODUUDQJHPHQWVZLWKRXWSULRUQRWLFHWRWKH&RQWUDFWRU :KHUHWKH2ZQHUKDVGHVLJQDWHGLQIRUPDWLRQIXUQLVKHGXQGHUWKLV6HFWLRQDV³FRQILGHQWLDO´WKH &RQWUDFWRUVKDOONHHSWKHLQIRUPDWLRQFRQILGHQWLDODQGVKDOOQRWGLVFORVHLWWRDQ\RWKHUSHUVRQ+RZHYHUWKH &RQWUDFWRUPD\GLVFORVH³FRQILGHQWLDO´LQIRUPDWLRQDIWHUVHYHQ YHG³7KH$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$PHULFDQ,QVWLWXWHRI$UFKLWHFWV´³$,$´WKH$,$/RJRDQG³$,$&RQW UDFW 'RFXPHQWV´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¶VFRQWURO DQGUHOHYDQWWRWKH&RQWUDFWRU¶VSHUIRUPDQFHRIWKH:RUNZLWKUHDVRQDEOHSURPSWQHVVDIWHUUHFHLYLQJWKH &RQWUDFWRU¶VZULWWHQUHTXHVWIRUVXFKLQIRUPDWLRQRUVHUYLFHV 8QOHVVRWKHUZLVHSURYLGHGLQWKH&RQWUDFW'RFXPHQWVWKH2ZQHUVKDOOIXUQLVKWRWKH&RQWUDFWRURQHFRS\RI WKH&RQWUDFW'RFXPHQWVIRUSXUSRVHVRIPDNLQJUHSURGXFWLRQVSXUVXDQWWR6HFWLRQ,IDJUHHGXSRQEHWZHHQWKH &RPPHQWHG>-3@ 7KLVPHDQVHOHFWURQLFRUKDUGFRS\ 2ZQHUDQG&RQWUDFWRUHOHFWURQLFFRSLHVPD\EHGHHPHGWRVDWLVI\WKLVSURYLVLRQ FRUUHFWMXVWPDNLQJVXUHWKLVLVQ¶WWKHROGVFKRROSUDFWLFHRI SURYLGLQJRQHKDUGFRS\VHWRISODQVWRWKHFRQWUDFWRU 2ZQHU·V5LJKWWR6WRSWKH:RUN &RPPHQWHG>0:UHSHDWHGO\IDLOVWRFDUU\RXW:RUNLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWVWKH &RPPHQWHG>-35@ /HW¶VMXVWFKDQJHWKMVWRRQH 2ZQHUPD\LVVXHDZULWWHQRUGHUWRWKH&RQWUDFWRUWRVWRSWKH:RUNRUDQ\SRUWLRQWKHUHRIXQWLOWKHFDXVHIRUVXFK HOHFWURQLFFRS\RIWKH&RQWUDFW'RFXPHQWV RUGHUKDVEHHQHOLPLQDWHGKRZHYHUWKHULJKWRIWKH2ZQHUWRVWRSWKH:RUNVKDOOQRWJLYHULVHWRDGXW\RQWKHSDUW RIWKH2ZQHUWRH[HUFLVHWKLVULJKWIRUWKHEHQHILWRIWKH&RQWUDFWRURUDQ\RWKHUSHUVRQRUHQWLW\H[FHSWWRWKHH[WHQW UHTXLUHGE\6HFWLRQ 2ZQHU·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¶VH[SHQVHVDQGFRPSHQVDWLRQIRUWKH$UFKLWHFW¶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³&RQWUDFWRU´PHDQV WKH&RQWUDFWRURUWKH&RQWUDFWRU¶VDXWKRUL]HGUHSUHVHQWDWLYH 7KH&RQWUDFWRUVKDOOSHUIRUPWKH:RUNLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWV 7KH&RQWUDFWRUVKDOOQRWEHUHOLHYHGRILWVREOLJDWLRQVWRSHUIRUPWKH:RUNLQDFFRUGDQFHZLWKWKH&RQWUDFW 'RFXPHQWVHLWKHUE\DFWLYLWLHVRUGXWLHVRIWKH$UFKLWHFWLQWKH$UFKLWHFW¶VDGPLQLVWUDWLRQRIWKH&RQWUDFWRUE\WHVWV LQVSHFWLRQVRUDSSURYDOVUHTXLUHGRUSHUIRUPHGE\SHUVRQVRUHQWLWLHVRWKHUWKDQWKH&RQWUDFWRU 5HYLHZRI&RQWUDFW'RFXPHQWVDQG)LHOG&RQGLWLRQVE\&RQWUDFWRU %\H[HFXWLQJWKH&RQWUDFWWKH&RQWUDFWRUUHSUHVHQWVWKDWWKH&RQWUDFWRUKDVUHYLHZHGDQGXQGHUVWDQGVWKH &RQWUDFW'RFXPHQWVKDVYLVLWHGWKH6LWHDQGLVIDPLOLDUZLWKORFDOFRQGLWLRQVXQGHUZKLFKWKH:RUNLVWREH $,$'RFXPHQW$±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¶VUHYLHZLVPDGHLQWKH&RQWUDFWRU¶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¶VSURSRVHGDOWHUQDWLYHWKH&RQWUDFWRUVKDOOSHUIRUPWKH:RUNXVLQJ LWVDOWHUQDWLYHPHDQVPHWKRGVWHFKQLTXHVVHTXHQFHVRUSURFHGXUHV 7KH&RQWUDFWRUVKDOOEHUHVSRQVLEOHWRWKH2ZQHUIRUDFWVDQGRPLVVLRQVRIWKH&RQWUDFWRU¶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¶V ZDUUDQW\H[FOXGHVUHPHG\IRUGDPDJHRUGHIHFWFDXVHGE\DEXVHDOWHUDWLRQVWRWKH:RUNQRWH[HFXWHGE\WKH &RQWUDFWRULPSURSHURULQVXIILFLHQWPDLQWHQDQFHLPSURSHURSHUDWLRQRUQRUPDOZHDUDQGWHDUDQGQRUPDOXVDJH,I UHTXLUHGE\WKH$UFKLWHFWWKH&RQWUDFWRUVKDOOIXUQLVKVDWLVIDFWRU\HYLGHQFHDVWRWKHNLQGDQGTXDOLW\RIPDWHULDOV DQGHTXLSPHQW $OOPDWHULDOHTXLSPHQWRURWKHUVSHFLDOZDUUDQWLHVUHTXLUHGE\WKH&RQWUDFW'RFXPHQWVVKDOOEHLVVXHGLQ WKHQDPHRIWKH2ZQHURUVKDOOEHWUDQVIHUDEOHWRWKH2ZQHUDQGVKDOOFRPPHQFHLQDFFRUGDQFHZLWK6HFWLRQ 7KH&RQWUDFWRU¶VJHQHUDOZDUUDQW\DQGDQ\DGGLWLRQDORUVSHFLDOZDUUDQWLHVDUHQRWOLPLWHGE\WKH &RQWUDFWRU¶VREOLJDWLRQVWRUHTXLUHWKH6XEFRQWUDFWRUVWRFRUUHFWGHIHFWLYHRUQRQFRQIRUPLQJ:RUNDVSURYLGHGLQ $UWLFOHQRUDUHWKH\OLPLWHGE\DQ\RWKHUUHPHGLHVSURYLGHGLQWKH&RQWUDFW'RFXPHQWV7KH&RQWUDFWRUVKDOO DOVREHOLDEOHIRUDQ\GDPDJHWRSURSHUW\RUSHUVRQV LQFOXGLQJGHDWK LQFOXGLQJFRQVHTXHQWLDODQGGLUHFWGDPDJHVWR 2ZQHUUHODWLQJWRDQ\EUHDFKRIWKH&RQWUDFWRU¶VJHQHUDOZDUUDQW\RUDQ\DGGLWLRQDORUVSHFLDOZ DUUDQWLHVXQGHUWKH &RQWUDFW'RFXPHQWV 7KH&RQWUDFWRUPXVWIXUQLVKDOOVSHFLDOZDUUDQWLHVXQGHUWKH&RQWUDFW'RFXPHQWVWRWKH2ZQHUQRODWHUWKDQ 6XEVWDQWLDO&RPSOHWLRQ7KH2ZQHUPD\UHTXLUHDGGLWLRQDOVSHFLDOZDUUDQWLHVLQFRQQHFWLRQZLWKWKHDSSURYDORI ³2U(TXDOV´RU6XEVWLWXWLRQV$OORZDQFHLWHPV:RUNWKDWLVGHIHFWLYHRUQRQFRQIRUPLQJRUWKHDFFHSWDQFHRI QRQFRQIRUPLQJ:RUNSXUVXDQWWR$UWLFOH 7D[HV 7KH&RQWUDFWRUVKDOOSD\VDOHVFRQVXPHUXVHDQGVLPLODUWD[HVIRUWKH:RUNSURYLGHGE\WKH&RQWUDFWRUWKDWDUH OHJDOO\HQDFWHGZKHQELGVDUHUHFHLYHGRUQHJRWLDWLRQVFRQFOXGHGZKHWKHURUQRW\HWHIIHFWLYHRUPHUHO\VFKHGXOHG WRJRLQWRHIIHFW $,$'RFXPHQW$± HVWKDWWKHFRQGLWLRQVDWWKHVLWHDUHQRWPDWHULDOO\GLIIHUHQWIURP WKRVHLQGLFDWHGLQWKH&RQWUDFW'RFXPHQWVDQGWKDWQRFKDQJHLQWKHWHUPVRIWKH&RQWUDFWLVMXVWLILHGWKH$UFKLWHFW VKDOOSURPSWO\QRWLI\WKH2ZQHUDQG&RQWUDFWRUVWDWLQJWKHUHDVRQV,IHLWKHUSDUW\GLVSXWHVWKH$UFKLWHFW¶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¶VFRQVHQW ZKLFKVKDOOQRWXQUHDVRQDEO\EHZLWKKHOGRUGHOD\HG &RQWUDFWRU·V&RQVWUXFWLRQDQG6XEPLWWDO6FKHGXOHV 7KH&RQWUDFWRUSURPSWO\DIWHUEHLQJDZDUGHGWKH&RQWUDFWVKDOOVXEPLWIRUWKH2ZQHU¶VDQG$UFKLWHFW¶V LQIRUPDWLRQD&RQWUDFWRU¶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¶VDQG$UFKLWHFW¶VDSSURYDO7KH2ZQHU¶VDQG$UFKLWHFW¶VDSSURYDOVKDOOQRWEHXQUHDVRQDEO\GHOD\HGRU ZLWKKHOG7KHVXEPLWWDOV FKHGXOHVKDOO EHFRRUGLQDWHGZLWKWKH&RQWUDFWRU¶VFRQVWUXFWLRQVFKHGXOHDQG DOORZ WKH$UFKLWHFWUHDVRQDEOHWLPHWRUHYLHZVXEPLWWDOV,IWKH&RQWUDFWRUIDLOVWRVXEPLWDVXEPLWWDOVFKHGXOHRUIDLOVWR SURYLGH$VXEPLWWDOVLQDFFRUGDQFHZLWKWKHDSSURYHGVXEPLWWDOVFKHGXOHWKH&RQWUDFWRUVKDOOQRWEHHQWLWOHGWRDQ\ &RPPHQWHG>-3@ $UFKLWHFWUHDVRQDEOHWLPH« LQFUHDVHLQ&RQWUDFW6XPRUH[WHQVLRQRI&RQWUDFW7LPHEDVHGRQWKHWLPHUHTXLUHGIRUUHYLHZRIVXEPLWWDOV EXVLQHVVGD\VVWDQGDUGIRUKLJKSULRULW\VXEPLWWDOV &RPPHQWHG>-35@ ,IZHGHILQHLWKHUHPDNHVXUHLW 7KH&RQWUDFWRUVKDOOSHUIRUPWKH:RUNLQJHQHUDODFFRUGDQFHZLWKWKHPRVWUHFHQWVFKHGXOHVVXEPLWWHGWR LVWUDQVIHUUHGWR%WRPDWFK WKH2ZQHUDQG$UFKLWHFW &RPPHQWHG>-35@ «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¶VIDLOXUHWRREWDLQDSSURYDORIDVXEPLWWDO UHTXLUHGWRKDYHEHHQREWDLQHGSULRUWRSURFHHGLQJZLWKWKH:RUNLQFOXGLQJEXWQRWOLPLWHGWRFRUUHFWLRQRIDQ\ FRQIOLFWVLQWKH:RUNUHVXOWLQJIURPVXFKIDLOXUH 7KH:RUNVKDOOEHLQDFFRUGDQFHZLWKDSSURYHGVXEPLWWDOVH[FHSWWKDWWKH&RQWUDFWRUVKDOOQRWEHUHOLHYHG &RPPHQWHG>-3@ 7KLVODQJXDJHLVUHDOO\DUFKLWHFW RIUHVSRQVLELOLW\IRUGHYLDWLRQVIURPWKHUHTXLUHPHQWVRIWKH&RQWUDFW'RFXPHQWVE\WKH$UFKLWHFW¶VDSSURYDORI IDYRUDEOHRQVXEPLWWDOV«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¶VDSSURYDOWKHUHRI &RPPHQWHG>-35@ 2. 7KH&RQWUDFWRUVKDOOGLUHFWVSHFLILFDWWHQWLRQLQZULWLQJRURQUHVXEPLWWHG6KRS'UDZLQJV3URGXFW'DWD 6DPSOHVRUVLPLODUVXEPLWWDOVWRUHYLVLRQVRWKHUWKDQWKRVHUHTXHVWHGE\WKH$UFKLWHFWRQSUHYLRXVVXEPLWWDOV,QWKH DEVHQFHRIVXFKQRWLFHWKH$UFKLWHFW¶VDSSURYDORIDUHVXEPLVVLRQVKDOOQRWDSSO\WRVXFKUHYLVLRQV 7KH&RQWUDFWRUVKDOOQRWEHUHTXLUHGWRSURYLGHSURIHVVLRQDOVHUYLFHVWKDWFRQVWLWXWHWKHSUDFWLFHRI DUFKLWHFWXUHRUHQJLQHHULQJXQOHVVVXFKVHUYLFHVDUHVSHFLILFDOO\UHTXLUHGE\WKH&RQWUDFW'RFXPHQWVIRUDSRUWLRQRI WKH:RUNRUXQOHVVWKH&RQWUDFWRUQHHGVWRSURYLGHVXFKVHUYLFHVLQRUGHUWRFDUU\RXWWKH&RQWUDFWRU¶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¶WWKDWLQWKH$([KLELW :RUNGHVLJQHGRUFHUWLILHGE\VXFKSURIHVVLRQDOLISUHSDUHGE\RWKHUVVKDOOEHDUVXFKSURIHVVLRQDO¶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± DSSURSULDWHDFWLRQRQVXEPLWWDOVRQO\IRUWKHOLPLWHGSXUSRVHRIFKHFNLQJIRUFRQIRUPDQFHZLWKLQIRUPDWLRQJLYHQ DQGWKHGHVLJQFRQFHSWH[SUHVVHGLQWKH&RQWUDFW'RFXPHQWV ,IWKH&RQWUDFW'RFXPHQWVUHTXLUHWKH&RQWUDFWRU¶VGHVLJQSURIHVVLRQDOWRFHUWLI\WKDWWKH:RUNKDVEHHQ SHUIRUPHGLQDFFRUGDQFHZLWKWKHGHVLJQFULWHULDWKH&RQWUDFWRUVKDOOIXUQLVKVXFKFHUWLILFDWLRQVWRWKH$UFKLWHFWDW WKHWLPHDQGLQWKHIRUPVSHFLILHGE\WKH$UFKLWHFW 8VHRI6LWH 7KH&RQWUDFWRUVKDOOFRQILQHRSHUDWLRQVDWWKHVLWHWRDUHDVSHUPLWWHGE\DSSOLFDEOHODZVVWDWXWHV RUGLQDQFHVFRGHVUXOHVDQGUHJXODWLRQVODZIXORUGHUVRISXEOLFDXWKRULWLHVDQGWKH&RQWUDFW'RFXPHQWVDQGVKDOO QRWXQUHDVRQDEO\HQFXPEHUWKHVLWHZLWKPDWHULDOVRUHTXLSPHQW 7KH&RQWUDFWRUVKDOOFRRUGLQDWHWKH&RQWUDFWRU¶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¶WRROVFRQVWUXFWLR QHTXLSPHQWPDFKLQHU\DQGVXUSOXVPDWHULDOVIURPDQG DERXWWKH3URMHFW 'HOHWHG 7KH&RQWUDFWRUVKDOONHHSWKHSUHPLVHVDQG VXUURXQGLQJDUHDIUHHIURPDFFXPXODWLRQRIZDVWHPDWHULDOV DQGUXEELVKFDXVHGE\RSHUDWLRQVXQGHUWKH&RQWUDFW$W ,IWKH&RQWUDFWRUIDLOVWRFOHDQXSDVSURYLGHGLQWKH&RQWUDFW'RFXPHQWVWKH2ZQHUPD\GRVRDQGWKH FRPSOHWLRQRIWKH:RUNWKH&RQWUDFWRUVKDOOUHPRYHZDVWH 2ZQHUVKDOOEHHQWLWOHGWRUHLPEXUVHPHQWIURPWKH&RQWUDFWRU PDWHULDOVUXEELVKWKH&RQWUDFWRU¶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¶VFRQVXOWDQWVDQGDJHQWVDQGHPSOR\HHVRIDQ\RIWKHPIURPDQGDJDLQVWFODLPV GDPDJHVORV VHVDQGH[SHQVHVLQFOXGLQJEXWQRWOLPLWHGWRDWWRUQH\V¶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¶ FRPSHQVDWLRQDFWVGLVDELOLW\EHQHILWDFWVRURWKHUHPSOR\HHEHQHILWDFWV 3UHYDLOLQJ:DJH &RPPHQWHG>:0(@ ,QFOXGHIRUSURMHFWVWKDWXVHVWDWH &RQWUDFWRUDJUHHVWKDWDOOODERUHUVRUPHFKDQLFVZRUNLQJRQWKH3URMHFWVKDOOUHFHLYHDWOHDVWWKHSUHYDLOLQJZDJHUDWH IXQGLQJ [[939,1460,1012,1496][7][,I,][Times New Roman]]HWVHT LQDFFRUGDQFHZLWK0LQQHVRWD6WDWXWHV6HFWLRQWHQWSURYLGHGLQWKH&RQWUDFW 'RFXPHQWV 7KH$UFKLWHFWZLOOYLVLWWKHVLWHDWLQWHUYDOVDSSURSULDWHWRWKHVWDJHRIFRQVWUXFWLRQRUDVRWKHUZLVHDJUHHG ZLWKWKH2ZQHUWREHFRPHJHQHUDOO\IDPLOLDUZLWKWKHSURJUHVVDQGTXDOLW\RIWKHSRUWLRQRIWKH:RUNFRPSOHWHG &RPPHQWHG>-3@ &RQVLGHUDGGLQJDPLQLPXP DQGWRGHWHUPLQHLQJHQHUDOLIWKH:RUNREVHUYHGLVEHLQJSHUIRUPHGLQDPDQQHULQGLFDWLQJWKDWWKH:RUNZKHQ IUHTXHQF\IRUVLWHYLVLWV" IXOO\FRPSOHWHGZLOOEHLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWV+RZHYHUWKH$UFKLWHFWZLOOQRWEHUHTXLUHGWR &RPPHQWHG>0: IDLOXUHWRSHUIRUPWKH:RUNLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKH&RQWUDFW'RFXPHQWV7KH$UFKLWHFWZLOOQRW KDYHFRQWURORYHURUFKDUJHRIDQGZLOOQRWEHUHVSRQVLEOHIRUDFWVRURPLVVLRQVRIWKH&RQWUDFWRU6XEFRQWUDFWRUV RUWKHLUDJHQWVRUHPSOR\HHVRUDQ\RWKHUSHUVRQVRUHQWLWLHVSHUIRUPLQJSRUWLRQVRIWKH:RUN &RPPXQLFDWLRQV 7KH2ZQHUDQG&RQWUDFWRUVKDOOLQFOXGHWKH$UFKLWHFWLQDOOFRPPXQLFDWLRQVWKDWUHODWHWRRUDIIHFWWKH$UFKLWHFW¶V VHUYLFHVRUSURIHVVLRQDOUHVSRQVLELOLWLHV7KH2ZQHUVKDOOSURPSWO\QRWLI\WKH$UFKLWHFWRIWKHVXEVWDQFHRIDQ\ GLUHFWFRPPXQLFDWLRQVEHWZHHQWKH2ZQHUDQGWKH&RQWUDFWRURWKHUZLVHUHODWLQJWRWKH3URMHFW&RPPXQLFDWLRQVE\ DQGZLWKWKH$UFKLWHFW¶VFRQVXOWDQWVVKDOOEHWKURXJKWKH$UFKLWHFW&RPPXQLFDWLRQVE\DQGZLWK6XEFRQWUDFWRUVDQG VXSSOLHUVVKDOOEHWKURXJKWKH&RQWUDFWRU&RPPXQLFDWLRQVE\DQGZLWK6HSDUDWH&RQWUDFWRUVVKDOOEHWKURXJKWKH 2ZQHU7KH&RQWUDFW'RFXPHQWVPD\VSHFLI\RWKHUFRPPXQLFDWLRQSURWRFROV %DVHGRQWKH$UFKLWHFW¶VHYDOXDWLRQVRIWKH&RQWUDFWRU¶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¶VVXEPLWWDOV VXFKDV6KRS'UDZLQJV3URGXFW'DWDDQG6DPSOHVEXWRQO\IRUWKHOLPLWHGSXUSRVHRIFKHFNLQJIRUFRQIRUPDQFH ZLWKLQ IRUPDWLRQJLYHQDQGWKHGHVLJQFRQFHSWH[SUHVVHGLQWKH&RQWUDFW'RFXPHQWV7KH$UFKLWHFW¶VDFWLRQZLOOEH WDNHQLQDFFRUGDQFHZLWKWKHVXEPLWWDOVFKHGXOHDSSURYHGE\WKH$UFKLWHFWRULQWKHDEVHQFHRIDQDSSURYHG VXEPLWWDOVFKHGXOHZLWKUHDVRQDEOHSURPS WQHVVZKLOHDOORZLQJVXIILFLHQWWLPHLQWKH$UFKLWHFW¶VSURIHVVLRQDO MXGJPHQWWRSHUPLWDGHTXDWHUHYLHZ5HYLHZRIVXFKVXEPLWWDOVLVQRWFRQGXFWHGIRUWKHSXUSRVHRIGHWHUPLQLQJWKH &RPPHQWHG>-3@ GD\VXQOHVVDUFKLWHFWUHTXHVWV DFFXUDF\DQGFRPSOHWHQHVVRIRWKHUGHWDLOVVXFKDVGLPHQVLRQVDQGTXDQWLWLHVRUIRUVXEVWDQWLDWLQJLQVWUXFWLRQVIRU PRUHWLPHDWWKHRQVHWRIWKHSURMHFW LQVWDOODWLRQRUSHUIRUPDQFHRIHTXLSPHQWRUV\VWHPVDOORIZKLFKUHPDLQWKHUHVSRQVLELOLW\RIWKH&RQWUDFWRUDV &RPPHQWHG>-35@ RULQWKHDEVFHQVHRID UHTXLUHGE\WKH&RQWUDFW'RFXPHQWV7KH$UFKLWHFW¶VUHYLHZRIWKH&RQWUDFWRU¶VVXEPLWWD OVVKDOOQRWUHOLHYHWKH VXEPLWWDOVFKHGXOHZLWKLQZRUNLQJGD\VXQOHVVDGGLWLRQDO &RQWUDFWRURIWKHREOLJDWLRQVXQGHU6HFWLRQVDQG7KH$UFKLWHFW¶VUHYLHZVKDOOQRWFRQVWLWXWHDSSURYDO WLPHLVUHTXHVWHGLQZULWLQJIURPWKH2ZQHU RIVDIHW\SUHFDXWLRQVRURIDQ\FRQVWUXFWLRQPHDQVPHWKRGVWHFKQLTXHVVHTXHQFHVRUSURFHGXUHV7KH$UFKLWHFW¶V &RPPHQWHG>-35@ 0LFKHOOHWRSXWLQDUFKLWHFW DSSURYDORIDVSHFLILFLWHPVKDOOQRWLQGLFDWHDSSURYDORIDQDVVHPEO\RIZKLFKWKHLWHPLVDFRPSRQHQW DJUHHPHQWRQO\ 7KH$UFKLWHFWZLOOSUHSDUH&KDQJH2UGHUVDQG&RQVWUXFWLRQ&KDQJH'LUHFWLYHVDQGPD\RUGHUPLQRU &RPPHQWHG>-3@ 7KLVOLQHKHUHUHOLHYHVWKHDUFKLWHFW FKDQJHVLQWKH:RUNDVSURYLGHGLQ6HFWLRQWRUWRFRPSOHWHWKHZRUNDFFRUGLQJWRWKHVXEPLWWDO UHYLHZVXQOHVV,PLVVHGVRPHWKLQJ6KRXOGQ¶WEHDEOHWR KDYHLWERWKZD\V 7KH$UFKLWHFWZLOOFRQGXFWLQVSHFWLRQVWRGHWHUPLQHWKHGDWHRUGDWHVRI6XEVWDQWLDO&RPSOHWLRQDQGWKHGDWH RIILQDOFRPSOHWLRQLVVXH&HUWLILFDWHVRI6XEVWDQWLDO&RPSOHWLRQSXUVXDQWWR6HFWLRQUHFHLYHDQGIRUZDUGWRWKH 2ZQHUIRUWKH2ZQHU¶VUHYLH ZDQGUHFRUGVZULWWHQZDUUDQWLHVDQGUHODWHGGRFXPHQWVUHTXLUHGE\WKH&RQWUDFWDQG DVVHPEOHGE\WKH&RQWUDFWRUSXUVXDQWWR6HFWLRQDQGLVVXHDILQDO&HUWLILFDWHIRU3D\PHQWSXUVXDQWWR 6HFWLRQ ,IWKH2ZQHUDQG$UFKLWHFWDJUHHWKH$UFKLWHFWZLOOSURYLGHRQHRUPRUH3URMHFWUHSUHVHQWDWLYHVWRDVVLVWLQ FDUU\LQJRXWWKH$UFKLWHFW¶VUHVSRQVLELOLWLHVDWWKHVLWH7KH2ZQHUVKDOOQRWLI\WKH&RQWUDFWRURIDQ\FKDQJHLQWKH &RPPHQWHG>-3@ 6KRXOGQ¶WWKLVEHWKHDUFKLW HFW GXWLHVUHVSRQVLELOLWLHVDQGOLPLWDWLRQVRIDXWKRULW\RIWKH3URMHFWUHSUHVHQWDWLYHV UHSUHVHQDWDWLYHOLVWHGLQWKHDJUHHPHQWRULVLW2.IRULWWREH VRPHRQHHOVHGHFLVLRQSRLQW 7KH$UFKLWHFWZLOOLQWHUSUHWDQGGHFLGHPDWWHUVFRQFHUQLQJSHUIRUPDQFHXQGHUDQGUHTXLUHPHQWVRIWKH &RQWUDFW'RFXPHQWVRQZULWWHQUHTXHVWRIHLWKHUWKH2ZQHURU&RQWUDFWRU7KH$UFKLWHFW¶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± 7KH$UFKLWHFW¶VGHFLVLRQVRQPDWWHUVUHODWLQJWRDHVWKHWLFHIIHFWZLOOEHILQDOLIFRQVLVWHQWZLWKWKHLQWHQW H[SUHVVHGLQWKH&RQWUDFW'RFXPHQWV 7KH$UFKLWHFWZLOOUHYLHZDQGUHVSRQGWRUHTXHVWVIRULQIRUPDWLRQDERXWWKH&RQWUDFW'RFXPHQWV7KH $UFKLWHFW¶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³6XEFRQWUDFWRU´LVUHIHUUHGWRWKURXJKRXWWKH&RQWUDFW'RFXPHQWVDVLIVLQJXODULQ QXPEHUDQGPHDQVD6XEFRQWUDFWRURUDQDXWKRUL]HGUHSUHVHQWDWLYHRIWKH6XEFRQWUDFWRU7KHWHUP³6XEFRQWUDFWRU´ GRHVQRWLQFOXGHD6HSDUDWH&RQWUDFWRURUWKHVXEFRQWUDFWRUVRID6HSDUDWH&RQWUDFWRU $6XEVXEFRQWUDFWRULVDSHUVRQRUHQWLW\ZKRKDVDGLUHFWRULQGLUHFWFRQWUDFWZLWKD6XEFRQWUDFWRUWR SHUIRUPDSRUWLRQRIWKH:RUNDWWKHVLWH7KHWHUP³6XEVXEFRQWUDFWRU´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¶VULJKWVDQG REOLJDWLRQVXQGHUWKHVXEFRQWUDFW 8SRQVXFKDVVLJQPHQWLIWKH:RUNKDVEHHQVXVSHQGHGIRUPRUHWKDQGD\VWKH6XEFRQWUDFWRU¶V FRPSHQVDWLRQVKDOOEHHTXLWDEO\DGMXVWHGIRULQFUHDVHVLQFRVWUHVXOWLQJIURPWKHVXVSHQVLRQ 8SRQDVVLJQPHQWWRWKH2ZQHUXQGHUWKLV6HFWLRQWKH2ZQHUPD\IXUWKHUDVVLJQWKHVXEFRQWUDFWWRD VXFFHVVRUFRQWUDFWRURURWKHUHQWLW\,IWKH2ZQHUDVVLJQVWKHVXEFRQWUDFWWRDVXFFHVVRUFRQWUDFWRURURWKHUHQWLW\ WKH2ZQHUVKDOOQHYHUWKHOHVVUHPDLQOHJDOO\UHVSRQVLEOHIRUDOORIWKHVXFFHVVRUFRQWUDFWRU¶VREOLJDWLRQVXQGHUWKH VXEFRQWUDFW $57,&/(&216758&7,21%<2:1(525%<6(3$5$7(&2175$&7256 2ZQHU·V5LJKWWR3HUIRUP&RQVWUXFWL RQDQGWR$ZDUG6HSDUDWH&RQWUDFWV 7KHWHUP³6HSDUDWH&RQWUDFWRU V ´VKDOOPHDQRWKHUFRQWUDFWRUVUHWDLQHGE\WKH2ZQHUXQGHUVHSDUDWH DJUHHPHQWV7KH2ZQHUUHVHUYHVWKHULJKWWRSHUIRUPFRQVWUXFWLRQRURSHUDWLRQVUHODWHGWRWKH3URMHFWZLWKWKH 2Z QHU¶VRZQIRUFHVDQGZLWK6HSDUDWH&RQWUDFWRUVUHWDLQHGXQGHU&RQGLWLRQVRIWKH&RQWUDFWVXEVWDQWLDOO\VLPLODU WRWKRVHRIWKLV&RQWUDFWLQFOXGLQJWKRVHSURYLVLRQVRIWKH&RQGLWLRQVRIWKH&RQWUDFWUHODWHGWRLQVXUDQFHDQG ZDLYHURIVXEURJDWLRQ :KHQVHSDUDWHFRQWUDFWVDUHDZDUGHGIRUGLIIHUHQWSRUWLRQVRIWKH3URMHFWRURWKHUFRQVWUXFWLRQRURSHUDWLRQV RQWKHVLWHWKHWHUP³&RQWUDFWRU´LQWKH&RQWUDFW'RFXPHQWVLQHDFKFDVHVKDOOPHDQWKH&RQWUDFWRUZKRH[HFXWHV HDFKVHSDUDWH2ZQHU&RQWUDFWRU$JUHHPHQW 7KH2ZQHUVKDOOSURYLGHIRUFRRUGLQDWLRQRIWKHDFWLYLWLHVRIWKH2ZQHU¶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¶VRZQIRUFHVRUZLWK6HSDUDWH&RQWUDFWRUVWKH2ZQHURULWV6HSDUDWH &RQWUDFWRUVVKDOOKDYHWKHVDPHREOLJDWLRQVDQGULJKWVWKDWWKH&RQWUDFWRUKDVXQGHUWKH&RQGLWLRQVRIWKH&RQWUDFW LQFOXGLQJZLWKRXWH[FOXGLQJRWKHUVWKRVHVWDWHGLQ$UWLFOHWKLV$UWLFOHDQG$UWLFOHVDQG 0XWXDO5HVSRQVLELOLW\ 7KH&RQWUDFWRUVKDOODIIRUGWKH2ZQHUDQG6HSDUDWH&RQWUDFWRUVUHDVRQDEOHRSSRUWXQLW\IRULQWURGXFWLRQDQG VWRUDJHRIWKHLUPDWHULDOVDQGHTXLSPHQWDQGSHUIRUPDQFHRIWKHLUDFWLYLWLHVDQGVKDOOFRQQHFWDQGFRRUGLQDWHWKH &RQWUDFWRU¶VFRQVWUXFWLRQDQGRSHUDWLRQVZLWKWKHLUVDVUHTXLUHGE\WKH&RQWUDFW'RFXPHQWV ,ISDUWRIWKH&RQWUDFWRU¶V:RUNGHSHQGVIRUSURSHUH[HFXWLRQRUUHVXOWVXSRQFRQVWUXFWLRQRURSHUDWLRQVE\ WKH2ZQHURUD6HSDUDWH&RQWUDFWRUWKH&RQWUDFWRUVKDOOSULRUWRSURFHHGLQJZLWKWKDWSRUWLRQRIWKH:RUN SURPSWO\QRWLI\WKH$UFKLWHFWRIDSSDUHQWGLVFUHSDQFLHVRUGHIHFWVLQWKHFRQVWUXFWLRQRURSHUDWLRQVE\WKH2ZQHURU 6HSDUDWH&RQWUDFWRUWKDWZRXOGUHQGHULWXQVXLWDEOHIRUSURSHUH[HFXWLRQDQGUHVXOWVRIWKH&RQWUDFWRU¶V:RUN )DLOXUHRIWKH&RQWUDFWRUWRQRWLI\WKH$UFKLWHFWRIDSSDUHQWGLVFUHSDQFLHVRUGHIHFWVSULRUWRSURFHHGLQJZLWKWKH :RUNVKDOOFRQVWLWXWHDQDFNQRZOHGJPHQWWKDWWKH2ZQHU¶VRU6HSDUDWH&RQWUDFWRU¶VFRPSOHWHGRUSDUWLDOO\ FRPSOHWHGFRQVWUXFWLRQLVILWDQGSURSHUWRUHFHLYHWKH&RQWUDFWRU¶V:RU N7KH&RQWUDFWRUVKDOOQRWEHUHVSRQVLEOH $,$'RFXPHQW$± IRUGLVFUHSDQFLHVRUGHIHFWVLQWKHFRQVWUXFWLRQRURSHUDWLRQVE\WKH2ZQHURU6HSDUDWH&RQWUDFWRUWKDWDUHQRW DSSDUHQW 7KH&RQWUDFWRUVKDOOUHLPEXUVHWKH2ZQHUIRUFRVWVWKH2ZQHULQFXUVWKDWDUHSD\DEOHWRD6HSDUDWH &RQWUDFWRUEHFDXVHRIWKH&RQWUDFWRU¶VGHOD\VLPSURSHUO\WLPHGDFWLYLWLHVRUGHIHFWLYHFRQVWUXFWLRQ7KH2ZQHU VKDOOEHUHVSRQVLEOHWRWKH&RQWUDFWRUIRUFRVWVWKH&RQWUDFWRULQFXUVEHFDXVHRID6HSDUDWH&RQWUDFWRU¶VGHOD\V &RPPHQWHG>-3@ &RQVLGHUUHTXLUHPHQWWRPDNH LPSURSHUO\WLPHGDFWLYLWLHVGDPDJHWRWKH:RUNRUGHIHFWLYHFRQVWUXFWLRQ FRQWUDFWRU¶VSODFHDFWLYLWLHVRIRWKHU2ZQHUFRQWUDFWVLQWKHLU RZQUHVSHFWLYHVFKHGXOHVVRWKH2ZQHUXQGHUVWDQGVWKH DFWLYLWLHVWKDWWKH&RQWUDFWRULVUHO\LQJXSRQDQGE\ZKDW 7KH&RQWUDFWRUVKDOOSURPSWO\UHPHG\GDPDJHWKDWWKH&RQWUDFWRUZURQJIXOO\FDXVHVWRFRPSOHWHGRU WLPHIUDPH SDUWLDOO\FRPSOHWHGFRQVWUXFWLRQRUWRSURSHUW\RIWKH2ZQHURU6HSDUDWH&RQWUDFWRUDVSURYLGHGLQ6HFWLRQ &RPPHQWHG>-35@ «FRQVWUXFWLRQVRORQJDVWKH 7KH2ZQHUDQGHDFK6HSDUDWH&RQWUDFWRUVKDOOKDYHWKHVDPHUHVSRQVLELOLWLHVIRUFXWWLQJDQGSDWFKLQJDVDUH 2ZQHU¶VFRQWUDFWRUVDFWLYLWLHVDUHLQFOXGHGDWWKHDSSURSULDWH GHVFULEHGIRUWKH&RQWUDFWRULQ6HFWLRQ GXUDWLRQLQWKH&RQWUDFWRU¶VFRQVWUXFWLRQVFKHGXOH 2ZQHU·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«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³GD\´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¶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¶ZRXOG KDYHFRPSOHWHGWKH:RUNSULRUWRWKHH[SLUDWLRQRIWKH&RQWUDFW7LPHEXWIRUDQ\FODLPHGGHOD\ $,$'RFXPHQW$± XSRSSRUWXQLW\IRUGHOD\FODLPV 7KLV6HFWLRQGRHVQRWSUHFOXGHUHFRYHU\RIGDPDJHVIRUGHOD\E\HLWKHUSDUW\XQGHURWKHUSURYLVLRQVRI &RPPHQWHG>-35@ ,ZRXOGUHPRYHXQXVXDOGHOD\LQ WKH&RQWUDFW'RFXPHQWV GHOLYHULHVWKDWLVWKHUH¶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¶V$SSOLFDWLRQVIRU3D\PHQW$Q\FKDQJHVWRWKHVFKHGXOHRIYDOXHVVKDOOEH &RPPHQWHG>-3@ 6FKHGXOHRIYDOXHVWRLQFOXGH VXEPLWWHGWRWKH$UFKLWHFWDQGVXSSRUWHGE\VXFKGDWDWRVXEVWDQWLDWHLWVDFFXUDF\DVWKH$UFKLWHFWPD\UHTXLUHDQG FRQWLQJHQF\YDOXH" XQOHVVREMHFWHGWRE\WKH$UFKLWHFWVKDOOEHXVHGDVDEDVLVIRUUHYLHZLQJWKH&RQWUDFWRU¶VVXEVHTXHQW$SSOLFDWLRQV &RPPHQWHG>-35@ DSSOLFDWLRQVIRUSD\PHQWDQG IRU3D\PHQW VKDOOLQFOXGHWKHFXUUHQWFRQWLQJHQF\YDOXH $SSOLFDWLRQVIRU3D\PHQW $WOHDVWWHQGD\VEHIRUHWKHGDWHHVWDEOLVKHGIRUHDFKSURJUHVVSD\PHQWWKH&RQWUDFWRUVKDOOVXEPLWWRWKH $UFKLWHFWDQLWHPL]HG$SSOLFDWLRQIRU3D\PHQWSUHSDUHGLQDFFRUGDQFHZLWKWKHVFKHGXOHRIYDOXHVLIUHTXLUHGXQGHU 6HFWLRQIRUFRPSOHWHGSRUWLRQVRIWKH:RUN7KHDSSOLFDWLRQVKDOOEHQRWDUL]HGLIUHTXLUHGDQGVXSSRUWHGE\DOO GDWDVXEVWDQWLDWLQJWKH&RQWUDFWRU¶VULJKWWRSD\PHQWWKDWWKH2ZQHURU$UFKLWHFWUHTXLUHVXFKDVFRSLHVRI UHTXLVLWLRQVDQGUHOHDVHVDQGZDLYHUVRIOLHQVIURP6XEFRQWUDFWRUVDQGVXSSOLHUVDQGVKDOOUHIOHFWUHWDLQDJHLI SURYLGHGIRULQWKH&RQWUDFW'RFXPHQWV $VSURYLGHGLQ6HFWLRQ $SSOLFDWLRQVIRU3D\PHQWVKDOOQRWLQFOXGHUHTXHVWVIRUSD\PHQWIRUSRUWLRQVRIWKH:RUNIRUZKLFKWKH &RQWUDFWRUGRHVQRWLQWHQGWRSD\D6XEFRQWUDFWRURUVXSSOLHUXQOHVVVXFK:RUNKDVEHHQSHUIRUPHGE\RWKHUV ZKRPWKH&RQWUDFWRULQWHQGVWRSD\7KH&RQWUDFWRU¶VSD\PHQWVWR6XEFRQWUDFWRUVPXVWFRPSO\ZLWKWKHDSSOLFDEOH SURYLVLRQVRI0LQQHVRWD6WDWXWHV6HFWLRQOHDSSURYHGE\WKH2ZQHU(DFK$SSOLFDWLRQIRU3D\PHQW PXVWEHFRQVLVWHQWZLWKWKHDSSURYHG6FKHGXOHRI9DOXHV,QRUGHUWRH[SHGLWHWKHUHYLHZDQGDSSURYDORI $SSOLFDWLRQVIRU3D\PHQWWKH&RQWUDFWRUPD\VXEPLWWRDQGUHYLHZZLWKWKH2ZQHUDGUDIW$SSOLFDWLRQIRU3D\PHQW DWDSURJUHVVPHHWLQJSULRUWRVXEPLWWLQJDIRUPDO$SSOLFDWLRQIRU3D\PHQW 7KHIRUPRI$SSOLFDWLRQIRU3D\PHQWPXVWEH$,$'RFXPHQW* SURYLGHGLQ6HFWLRQRU ZLWKKROGFHUWLILFDWLRQRIWKHHQWLUH$SSOLFDWLRQIRU3D\PHQWDQGQRWLI\WKH &RQWUDFWRUDQG2ZQHURIWKH$UFKLWHFW¶VUHDVRQIRUZLWKKROGLQJFHUWLILFDWLRQLQZKROHDVSURYLGHGLQ6HFWLRQ 7KHLVVXDQFHRID&HUWLILFDWHIRU3D\PHQWZLOOFRQVWLWXWHDUHSUHVHQWDWLRQE\WKH$UFKLWHFWWRWKH2ZQHU EDVHGRQWKH$UFKLWHFW¶VHYDOXDWLRQRIWKH:RUNDQGWKHGDWDLQWKH$SSOLFDWLRQIRU3D\PHQWWKDWWRWKHEHVWRIWKH $UFKLWHFW¶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¶VULJKWWR SD\PHQWRU PDGHH[DPLQDWLRQWRDVFHUWDLQKRZRUIRUZKDWSXUSRVHWKH&RQWUDFWRUKDVXVHGPRQH\SUHYLRXVO\ SDLGRQDFFRXQWRIWKH&RQWUDFW6XP 'HFLVLRQVWR:LWKKROG&HUWLILFDWLRQ 7KH$UFKLWHFWPD\ZLWKKROGD&HUWLILFDWHIRU3D\PHQWLQZKROHRULQSDUWWRWKHH[WHQWUHDVRQDEO\QHFHVVDU\ WRSURWHFWWKH2ZQHULILQWKH$UFKLWHFW¶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¶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± 7KH&RQWUDFWRUVKDOOSD\HDFK6XEFRQWUDFWRULQDFFRUGDQFHZLWKWKH3URPSW3D\PHQW$FWDIWHUUHFHLSWRI 'HOHWHG QRODWHUWKDQVHYHQGD\V SD\PHQWIURPWKH2ZQHUWKHDPRXQWWRZKLFKWKH6XEFRQWUDFWRULVHQWLWOHGUHIOHFWLQJSHUFHQWDJHVDFWXDOO\UHWDLQHG IURPS D\PHQWVWRWKH&RQWUDFWRURQDFFRXQWRIWKH6XEFRQWUDFWRU¶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¶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¶VIHHVDQGOLWLJ DWLRQH[SHQVHV DULVLQJRXWRIDQ\OLHQFODLPRURWKHUFODLPIRUSD\PHQWE\DQ\6XEFRQWUDFWRURUVXSSOLHURIDQ\WLHU8SRQUHFHLSWRI QRWLFHRIDOLHQFODLPRURWKHUFODLPIRUSD\PHQWWKH2ZQHUVKDOOQRWLI\WKH&RQWUDFWRU,IDSSURYHGE\WKH &RPPHQWHG>-3UNXQWLOSD\PHQWRIWKHDPRXQWRZLQJKDVEHHQUHFHLYHG7KH&RQWUDFW7LPHVKDOOEHH[WHQGHG 'HOHWHG ZLWKLQVHYHQGD\VDIWHUWKHGDWHHVWDEOLVKHGLQWKH DSSURSULDWHO\DQGWKH&RQWUDFW6XPVKDOOEHLQFUHDVHGE\WKHDPRXQWRIWKH&RQWUDFWRU¶VUHDVRQDEOHFRVWVRI &RQWUDFW'RFXPHQWVWKHDPRXQWFHUWLILHGE\WKH$UFKLWHFWRU VKXWGRZQGHOD\DQGVWDUWXSSOXVLQWHUHVWDVSURYLGHGIRULQWKH&RQWUDFW'RFXPHQWV 6XEVWDQWLDO&RPSOHWLRQ 6XEVWDQWLDO&RPSOHWLRQLVWKHVWDJHLQWKHSURJUHVVRIWKH:RUNZKHQWKH:RUNRUGHVLJQDWHGSRUWLRQWKHUHRI LVVXIILFLHQWO\FRPSOHWHLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWVVRWKDWWKH2ZQHUFDQRFFXS\RUXWLOL]HWKH &RPPHQWHG>-3ULJKWYLRODWLRQVHPDLOGRFLQIR#DLDFRQWUDFWVFRP 8VHU1RWHV 8SRQUHFHLSWRIWKH&RQWUDFWRU¶VOL VWWKH$UFKLWHFWZLOOPDNHDQLQVSHFWLRQWRGHWHUPLQHZKHWKHUWKH:RUNRU GHVLJQDWHGSRUWLRQWKHUHRILVVXEVWDQWLDOO\FRPSOHWH,IWKH$UFKLWHFW¶VLQVSHFWLRQGLVFORVHVDQ\LWHPZKHWKHURUQRW LQFOXGHGRQWKH&RQWUDFWRU¶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¶VQRWLFHWKDWWKH:RUNLVUHDG\IRUILQDOLQVSHFWLRQDQGDFFHSWDQFHDQGXSRQ UHFHLSWRIDILQDO$SSOLFDWLRQIRU3D\PHQWWKH$UFKLWHFWZLOOSURPSWO\PDNHVXFKLQVSHFWLRQ:KHQWKH$UFKLWHFW ILQGVWKH:RUNDFFHSWDEOHXQGHUWKH&RQWUDFW'RFXPHQWVDQGWKH&RQWUDFWIXOO\SHUIRUPHGWKH$UFKLWHFWZLOO SURPSWO\LVVXHDILQDO&HUWLILFDWHIRU3D\PHQWVWDWLQJWKDWWRWKHEHVWRIWKH$UFKLWHFW¶VNQRZOHGJHLQIRUPDWLRQDQG EHOLHIDQGRQWKHEDVLVRIWKH$UFKLWHFW¶VRQVLWHYLVLWVDQGLQVSHFWLRQVWKH:RUNKDVEHHQFRPSOHWHGLQDFFRUGDQFH ZLWKWKH&RQWUDFW'RFXPHQWVDQGWKDWWKHHQWLUHEDODQFHIRXQGWREHGXHWKH&RQWUDFWRUDQGQRWHGLQWKHILQDO &HUWLILFDWHLVGXHDQGSD\DEOH7KH$UFKLWHFW¶VILQDO&HUWLILFDWHIRU3D\PHQWZLOOFRQVWLWXWHDIXUWKHUUHSUHVHQWDWLRQ WKDWFRQGLWLRQVOLVWHGLQ6HFWLRQDVSUHFHGHQWWRWKH&RQWUDFWRU¶VEHLQJHQWLWOHGWRILQDOSD\PHQWKDYHEHHQ IXOILOOHG 1HLWKHUILQDOSD\PHQWQRUDQ\UHPDLQLQJUHWDLQHGSHUFHQWDJHVKDOOEHFRPHGXHXQWLOWKH&RQWUDFWRUVXEPLWV WRWKH$UFKLWHFW DQDIILGDYLWWKDWSD\UROOVELOOVIRUPDWHULDOVDQGHTXLSPHQWDQGRWKHULQGHEWHGQHVVFRQQHFWHG ZLWKWKH:RUNIRUZKLFKWKH2ZQH URUWKH2ZQHU¶VSURSHUW\PLJKWEHUHVSRQVLEOHRUHQFXPEHUHG OHVVDPRXQWV ZLWKKHOGE\2ZQHU KDYHEHHQSDLGRURWKHUZLVHVDWLVILHGLQFOXGLQJEXWQRWOLPLWHGWRFRPSOHWHG,&IRUPV DFHUWLILFDWHHYLGHQFLQJWKDWLQVXUDQFHUHTXLUHGE\WKH&RQWUDFW'RFXPHQWVWRUHPDLQLQIRUFHDIWHUILQDOSD\PHQWLV FXUUHQWO\LQHIIHFW DZULWWHQVWDWHPHQWWKDWWKH&RQWUDFWRUNQRZVRIQRUHDVRQWKDWWKHLQVXUDQFHZLOOQRWEH $,$'RFXPHQW$±LDFRQWUDFWVFRP 8VHU1RWHV UHQHZDEOHWRFRYHUWKHSHULRGUHTXLUHGE\WKH&RQWUDFW'RFXPHQWV FRQVHQWRIVXUHW\LIDQ\WRILQDOSD\PHQW GRFXPHQWDWLRQRIDQ\VSHFLDOZDUUDQWLHVVXFKDVPDQXIDFWXUHUV¶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¶VQRWLFHDQG UHTXHVWIRUDILQDOLQVSHFWLRQPXVWEHDFFRPSDQLHGE\DILQDO$SSOLFDWLRQIRU3D\PHQWDQGWKH6XEPLWWDOVUHTXLUHG E\6HFWLRQ VRIWKH&RQWUDFW'RFXPHQWV 7KH$UFKLWHFWZLOOSURPSWO\QRWLI\WKH&RQWUDFWRULIWKH2ZQHURU$UFKLWHFWGRHVQRWFRQFXUWKDWWKH:RUNLVILQDOO\ FRPSOHWH,QVXFKFDVHWKH&RQWUDFWRUPXVWEHDUWKHFRVWRIDQ\QHFHVVDU\DGGLWLRQDOSURIHVVLRQDOVHUYLFHVRIWKH 2ZQHURU$UFKLWHFWXQWLOWKH:RUNLVGHWHUPLQHGWREHILQDOO\FRPSOHWH $57,&/(3527(&7,212)3(56216$1'3523(57< 6DIHW\3UHFDXWLRQVDQG3URJUDPV 7KH&RQWUDFWRUVKDOOEHUHVSRQVLEOHIRULQLWLDWLQJPDLQWDLQLQJDQGVXSHUYLVLQJDOOVDIHW\SUHFDXWLRQVDQGSURJUDPV LQFRQQHFWLRQZLWKWKHSHUIRUPDQFHRIWKH&RQWUDFW 6DIHW\RI3HUVRQVDQG3URSHUW\ 7KH&RQWUDFWRUVKDOOWDNHUHDVRQDEOHSUHFDXWLRQVIRUVDIHW\RIDQGVKDOOSURYLGHUHDVRQDEOHSURWHFWLRQWR SUHYHQWGDPDJHLQMXU\RUORVVWR HPSOR\HHVRQWKH:RUNDQGRWKHUSHUVRQVZKRPD\EHDIIHFWHGWKHUHE\ $,$'RFXPHQW$± WKH:RUNDQGPDWHULDOVDQGHTXLSPHQWWREHLQFRUSRUDWHGWKHUHLQZKHWKHULQVWRUDJHRQRURIIWKH VLWHXQGHUFDUHFXVWRG\RUFRQWURORIWKH&RQWUDFWRUD6XEFRQWUDFWRURUD6XEVXEFRQWUDFWRUDQG RWKHUSURSHUW\DWWKHVLWHRUDGMDFHQWWKHUHWRVXFKDVWUHHVVKUXEVODZQVZDONVSDYHPHQWV URDGZD\VVWUXFWXUHVDQGXWLOLWLHVQRWGHVLJQDWHGIRUUHPRYDOUHORFDWLRQRUUHSODFHPHQWLQWKHFRXUVH RIFRQVWUXFWLRQ 7KH&RQWUDFWRUVKDOOFRPSO\ZLWKDQGJLYHQRWLFHVUHTXLUHGE\DSSOLFDEOHODZVVWDWXWHVRUGLQDQFHVFRGHV UXOHVDQGUHJXODWLRQVDQGODZIXORUGHUVRISXEOLFDXWKRULWLHVEHDULQJRQVDIHW\RISHUVRQVRUSURSHUW\RUWKHLU SURWHFWLRQIURPGDPDJHLQMXU\RUORVV 7KH&RQWUDFWRUVKDOOLPSOHPHQWHUHFWDQGPDLQWDLQDVUHTXLUHGE\H[LVWLQJFRQGLWLRQVDQGSHUIRUPDQFHRI WKH&RQWUDFWUHDVRQDEOHVDIHJXDUGVIRUVDIHW\DQGSURWHFWLRQLQFOXGLQJSRVWLQJGDQJHUVLJQVDQGRWKHUZDUQLQJV DJDLQVWKD]DUGVSURPXOJDWLQJVDIHW\UHJXODWLRQVDQGQRWLI\LQJWKHRZQHUVDQGXVHUVRIDGMDFHQWVLWHVDQGXWLOLWLHVRI WKHVDIHJXDUGV :KHQXVHRUVWRUDJHRIH[SORVLYHVRURWKHUKD]DUGRXVPDWHULDOVRUHTXLSPHQWRUXQXVXDOPHWKRGVDUH QHFHVVDU\IRUH[HFXWLRQRIWKH:RUNWKH&RQWUDFWRUVKDOOH[HUFLVHXWPRVWFDUHDQGFDUU\RQVXFKDFWLYLWLHVXQGHU VXSHUYLVLRQRISURSHUO\TXDOLILHGSHUVRQQHO 7KH&RQWUDFWRUVKDOOSURPSWO\UHPHG\GDPDJHDQGORVV RWKHUWKDQGDPDJHRUORVVLQVXUHGXQGHUSURSHUW\ LQVXUDQFHUHTXLUHGE\WKH&RQWUDFW'RFXPHQWV WRSURSHUW\UHIHUUHGWRLQ6HFWLRQVDQGFDXVHGLQ ZKROHRULQSDUWE\WKH&RQWUDFWRUD6XEFRQWUDFWRUD6XEVXEFRQWUDFWRURUDQ\RQHGLUHFWO\RULQGLUHFWO\HPSOR\HG E\DQ\RIWKHPRUE\DQ\RQHIRUZKRVHDFWVWKH\PD\EHOLDEOHDQGIRUZKLFKWKH&RQWUDFWRULVUHVSRQVLEOHXQGHU 6HFWLRQVDQG7KH&RQWUDFWRUPD\PDNHD&ODLPIRUWKHFRVWWRUHPHG\WKHGDPDJHRUORVVWRWKH H[WHQWVXFKGDPDJHRUORVVLVDWWULEXWDEOHWRDFWVRURPLVVLRQVRIWKH2ZQHURU$UFKLWHFWRUDQ\RQHGLUHFWO\RU LQGLUHFWO\HPSOR\HGE\HLWKHURIWKHPRUE\DQ\RQHIRUZKRVHDFWVHLWKHURIWKHPPD\EHOLDEOHDQGQRWDWWULEXWDEOH WRWKHIDXOWRUQHJOLJHQFHRIWKH&RQWUDFWRU7KHIRUHJRLQJREOLJDWLRQVRIWKH&RQWUDFWRUDUHLQDGGLWLRQWRWKH &RQWUDFWRU¶VREOLJDWLRQVXQGHU6HFWLRQ 7KH&RQWUDFWRUVKDOOGHVLJQDWHDUHVSRQVLEOHPHPEHURIWKH&RQWUDFWRU¶VRUJDQL]DWLRQDWWKHVLWHZKRVHGXW\ VKDOOEHWKHSUHYHQWLR QRIDFFLGHQWV7KLVSHUVRQVKDOOEHWKH&RQWUDFWRU¶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¶VQRWLFHWKH2ZQHUVKDOOREWDLQWKHVHUYLFHVRIDOLFHQVHGODER UDWRU\WR YHULI\WKHSUHVHQFHRUDEVHQFHRIWKHPDWHULDORUVXEVWDQFHUHSRUWHGE\WKH&RQWUDFWRUDQGLQWKHHYHQWVXFKPDWHULDO RUVXEVWDQFHLVIRXQGWREHSUHVHQWWRFDXVHLWWREHUHQGHUHGKDUPOHVV8QOHVVRWKHUZLVHUHTXLUHGE\WKH&RQWUDFW 'RFXPHQWVWKH2ZQHUVKDOOIXUQLVKLQZULWLQJWRWKH&RQWUDFWRUDQG$UFKLWHFWWKHQDPHVDQGTXDOLILFDWLRQVRI $,$'RFXPHQW$±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¶VUHDVRQDEOHDGGLWLRQDOFRVWV RIVKXWGRZQGHOD\DQGVWDUWXS 7RWKHIXOOHVWH[WHQWSHUPLWWHGE\ODZWKH2ZQHUVKDOOLQGHPQLI\DQGKROGKDUPOHVVWKH&RQWUDFWRU 6XEFRQWUDFWRUV$UFKLWHFW$UFKLWHFW¶VFRQVXOWDQWVDQGDJHQWVDQGHPSOR\HHVRIDQ\RIWKHPIURPDQGDJDLQVW FODLPVGDPDJHVORVVHVDQGH[SHQVHVLQFOXGLQJEXWQRWOLPLWHGWRDWWRUQH\V¶IHHVDULVLQJRXWRIRUUHVXOWLQJIURP SHUIRUPDQFHRIWKH:RUNRQ2ZQHU¶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¶VIDXOWRUQHJOLJHQFHLQWKHXVHDQGKDQ GOLQJRIVXFKPDWHULDOVRUVXEVWDQFHV 7KH&RQWUDFWRUVKDOOUHLPEXUVHWKH2ZQHUIRUWKHFRVWDQGH[SHQVHWKH2ZQHULQFXUV IRUUHPHGLDWLRQRI KD]DUGRXVPDWHULDOVRUVXEVWDQFHVWKH&RQWUDFWRUEULQJVWRWKHVLWHDQGQHJOLJHQWO\KDQGOHVRU ZKHUHWKH &RQWUDFWRUIDLOVWRSHUIRUPLWVREOLJDWLRQVXQGHU6HFWLRQH[FHSWWRWKHH[WHQWWKDWWKHFRVWDQGH[SHQVHDUH GXHWRWKH2ZQHU¶VIDXOWRUQHJOLJHQFH ,IZLWKRXWQHJOLJHQFHRQWKHSDUWRIWKH&RQWUDFWRUWKH&RQWUDFWRULVKHOGOLDEOHE\DJRYHUQPHQWDJHQF\ IRUWKHFRVWRIUHPHGLDWLRQRIDKD]DUGRXVPDWHULDORUVXEVWDQFHVROHO\E\UHDVRQRISHUIRUPLQJ:RUNDVUHTXLUHGE\ WKH&RQWUDFW'RFXPHQWVWKH2ZQHUVKDOOUHLPEXUVHWKH&RQWUDFWRUIRUDOOFRVWDQGH[SHQVHWKHUHE\LQFXUUHG (PHUJHQFLHV ,QDQHPHUJHQF\DIIHFWLQJVDIHW\RISHUVRQVRUSURSHUW\WKH&RQ WUDFWRUVKDOODFWDWWKH&RQWUDFWRU¶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± IURPDFRPSDQ\RUFRPSDQLHVODZIXOO\DXWKRUL]HGWRLVVXHVXUHW\ERQGVLQWKHMXULVGLFWLRQZKHUHWKH3URMHFWLV ORFDWHG 8SRQWKHUHTXHVWRIDQ\SHUVRQRUHQWLW\DSSHDULQJWREHDSRWHQWLDOEHQHILFLDU\RIERQGVFRYHULQJSD\PHQW 'HOHWHG RIREOLJDWLRQVDULVLQJXQGHUWKH&RQWUDFWWKH&RQWUDFWRUVKDOOSURPSWO\IXUQLVKDFRS\RIWKHERQGVRUVKDOO DXWKRUL]HDFRS\WREHIXUQLVKHG &RPPHQWHG>-3@ ,VWKHGRXEOHOD\HUVRIERQGLQJ ODQJXDJHVXJJHVWHGIRUWKLVVHFWLRQDVZHOO 1RWLFHRI&DQFHOODWLRQRU([SLUDWLRQRI&RQWUDFWRU·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·V,QVXUDQFH 7KH2ZQHUVKDOOSXUFKDVHDQGPDLQWDLQLQVXUDQFHRIWKHW\SHVDQGOLPLWVRIOLDELOLW\FRQWDLQLQJWKH HQGRUVHPHQWVDQGVXEMHFWWRWKHWHUPVDQGFRQGLWLRQVDVGHVFULEHGLQWKH$JUHHPHQWRUHOVHZKHUHLQWKH&RQWUDFW 'RFXPHQWV7KH2ZQHUVKDOOSXUFKDVHDQGPDLQWDLQWKHUHTXLUHGLQVXUDQFHIURPDQLQVXUDQFHFRPSDQ\RULQVXUDQFH FRPSDQLHVODZIXOO\DXWKRUL]HGWRLVVXHLQVXUDQFHLQWKHMXULVGLFWLRQZKHUHWKH3URMHFWLVORFDWHG &RPPHQWHG>-3@ :KHUHLVEXLOGHU¶VULVNLQVXUDQFH GLVFXVVHGLVWKDWLQWKH$RULVWKDWZKDWLVPHDQWE\ )DLOXUHWR3XUFKDVH5HTXLUHG3URSHUW\,QVXUDQFH ,IWKH2ZQHUIDLOVWRSXUFKDVHDQGPDLQWDLQWKHUHTXLUHG ³SURSHUW\LQVXUDQFH´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·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¶VFRQVXOWDQWVDQG 6HSDUDWH&RQWUDFWRUVLIDQ\DQGDQ\RIWKHLUVXEFRQWUDFWRUVVXEVXEFRQWUDFWRUVDJHQWVDQGHPSOR\HHVIRU GDPDJHVFDXVHGE\ILUHRURWKHUFDXVHVRIORVVWRWKHH[WHQWWKRVHORVVHVDUHFRYHUHGE\SURSHUW\LQVXUDQFHUHTXLUHG E\WKH$JUHHPHQWRURWKHUSURSHUW\LQVXUDQFHDSSOLFDEOHWRWKH3URMHFWH[FHSWVXFKULJKWVDVWKH\KDYHWRSURFHHGV RIVXFKLQVXUDQFH7KH2ZQHURU&RQWUDFWRUDVDSSURSULDWHVKDOOUHTXLUHVLPLODUZULWWHQZDLYHUVLQIDYRURIWKH LQGLYLGXDOVDQGHQWLWLHVLGHQWLILHGDERYHIURPWKH$UFKLWHFW$UFKLWHFW¶VFRQVXOWDQWV6HSDUDWH&RQWUDFWRUV VXEFRQWUDFWRUVDQGVXEVXEFRQWUDFWRUV7KHSROLFLHVRILQVXUDQFHSXUFKDVHGDQGPDLQWDLQHGE\HDFKSHUVRQRUHQWLW\ DJUHHLQJWRZDLYHFODLPVSXUVXDQWWRWKLVVHFWLRQVKDOOQRWSURKLELWWKLVZDLYHURIVXEURJDWLRQ7KLVZDLYHURI VXEURJDWLRQVKDOOEHHIIHFWLYHDVWRDSHUVRQRUHQWLW\ HYHQWKRXJKWKDWSHUVRQRUHQWLW\ZRXOGRWKHUZLVHKDYHD $,$'RFXPHQW$±XQGHU2UGHU 1RZKLFKH[SLUHVRQLVQRWIRUUHVDOHLVOLFHQVHGIRURQHWLPHXVHRQO\DQGPD\RQO\EHXVHGLQDFFRUGDQFHZLWK WKH$,$&RQWUDFW'RFXPHQWV7HUPVRI6HUYLFH7RUHSRUWFRS\ULJKWYLRODWLRQVHPDLOGRFLQIR#DLDFRQWUDFWVFRP 8VHU1RWHV GXW\RILQGHPQLILFDWLRQFRQWUDFWXDORURWKHUZLVH HYHQWKRXJKWKDWSHUVRQRUHQWLW\GLGQRWSD\WKHLQVXUDQFH SUHPLXPGLUHFWO\RULQGLUHFWO\RU ZKHWKHURUQRWWKHSHUVRQRUHQWLW\KDGDQLQVXUDEOHLQWHUHVWLQWKHGDPDJHG SURSHUW\ 1RWZLWKVWDQGLQJWKHDERYH2ZQHUGRHVQRWZDLYHLWVULJKWWRVXEURJDWHDJDLQVW &RQWUDFWRUDQ\RILWV 6XEFRQWUDFWRUVVXE6XEFRQWUDFWRUVDJHQWVRUHPSOR\HHVIRUGDPDJHVFDXVHGWRQRQ3URMHFWUHODWHGSURSHUW\UHDORU SHUVRQDORUERWKDWRUDGMDFHQWWRWKHVLWHRIWKH3URMHFWFDXVHGE\WKHQHJOLJHQWLQWHQWLRQDORURWKHUZLOOIXODFWRU RPLVVLRQRIWKH&RQWUDFWRUDQ\RILWV6XEFRQWUDFWRUVVXE6XEFRQWUDFWRUVDJHQWVRUHPSOR\HHVRUDJDLQVW WKH $UFKLWHFWRU$UFKLWHFW¶VFRQVXOWDQWLIDQ\IRUGDP DJHVFDXVHGWRQRQ3URMHFWUHODWHGSURSHUW\UHDORUSHUVRQDORU ERWKDWRUDGMDFHQWWRWKHVLWHRIWKH3URMHFWFDXVHGE\WKHQHJOLJHQWLQWHQWLRQDORURWKHUZLOOIXODFWRURPLVVLRQRI WKH$UFKLWHFWRU$UFKLWHFW¶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¶VRSWLRQPD\SXUFKDVHDQG PDLQWDLQLQVXUDQFHWKDWZLOOSURWHFWWKH2ZQHUDJDLQVWORVVRI $ORVVLQVXUHGXQGHUWKHSURSHUW\LQVXUDQFHUHTXLUHGE\WKH$JUHHPHQWVKDOOEHDGMXVWHGE\WKH2ZQHUDV XVHRIWKH2ZQHU¶VSURSHUW\RUWKHLQDELOLW\WRFRQGXFW ILGXFLDU\DQGPDGHSD\DEOHWRWKH2ZQHUDVILGXFLDU\IRUWKHLQVXUHGVDVWKHLULQWHUHVWVPD\DSSHDUVXEMHFWWR QRUPDORSHUDWLRQVGXHWRILUHRURWKHUFDXVHVRIORVV7KH UHTXLUHPHQWVRIDQ\DSSOLFDEOHPRUWJDJHHFODXVHDQGRI6HFWLRQ7KH2ZQHUVKDOOSD\WKH$UFKLWHFWDQG 2ZQHUZDLYHVDOOULJKWVRIDFWLRQDJDLQVWWKH&RQWUDFWRUDQG &RQWUDFWRUWKHLUMXVWVKDUHVRILQVXUDQFHSURFHHGVUHFHLYHGE\WKH2ZQHUDQGE\DSSURSULDWHDJUHHPHQWVWKH $UFKLWHFWIRUORVVRIXVHRIWKH2ZQHU¶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¶VUHTXHVWRUWRUHTXLUHPHQWVVSHFLILFDOO\ H[SUHVVHGLQWKH&RQWUDFW'RFXPHQWVLWPXVWLIUHTXHVWHGLQZULWLQJE\WKH$UFKLWHFWEHXQFRYHUHGIRUWKH $UFKLWHFW¶VH[DPLQDWLRQDQGEHUHSODFHGDWWKH&RQWUDFWRU¶VH[SHQVHZLWKRXWFKDQJHLQWKH&RQWUDFW7LPH ,IDSRUWLRQRIWKH:RUNKDVEHHQFRYHUHGWKDWWKH$UFKLWHFWKDVQRWVSHFLILFDOO\UHTXHVWHGWRH[DPLQHSULRU WRLWVEHLQJFRYHUHGWKH$UFKLWHFWPD\UHTXHVWWRVHHVXFK:RUNDQGLWVKDOOEHXQFRYHUHGE\WKH&RQWUDFWRU,IVXFK :RUNLVLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWVWKH&RQWUDFWRUVKDOOEHHQWLWOHGWRDQHTXLWDEOHDGMXVWPHQWWR WKH&RQWUDFW6XPDQG&RQWUDFW7LPHDVPD\EHDSSURSULDWH,IVXFK:RUNLVQRWLQDFFRUGDQFHZLWKWKH&RQWUDFW 'RFXPHQWVWKHFRVWVRIXQFRYHULQJWKH:RUNDQGWKHFRVWRIFRUUHFWLRQVKDOOEHDWWKH&RQWUDFWRU¶VH[SHQVH &RUUHFWLRQRI:RUN %HIRUH6XEVWDQWLDO&RPSOHWLRQ 7KH&RQWUDFWRUVKDOOSURPSWO\FRUUHFW:RUNUHMHFWHGE\WKH$UFKLWHFWRUIDLOLQJWRFRQIRUPWRWKHUHTXLUHPHQWVRI WKH&RQWUDFW'RFXPHQWVGLVFRYHUHGEHIRUH6XEVWDQWLDO&RPSOHWLRQDQGZKHWKHURUQRWIDEULFDWHGLQVWDOOHGRU $,$'RFXPHQW$± FRPSOHWHG&RVWVRIFRUUHFWLQJVXFKUHMHFWHG:RUNLQFOXGLQJDGGLWLRQDOWHVWLQJDQGLQVSHFWLRQVWKHFRVWRI XQFRYHULQJDQGUHSODFHPHQWDQGFRPSHQVDWLRQIRUWKH$UFKLWHFW¶VVHUYLFHVDQGH[SHQVHVPDGHQHFHVVDU\WKHUHE\ VKDOOEHDWWKH&RQWUDFWRU¶VH[SHQVH $IWHU6XEVWDQWLDO&RPSOHWLRQ ,QDGGLWLRQWRWKH&RQWUDFWRU¶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¶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¶VOLDELOLW\ZLWKUHVSHFWWRWKH&RQWUDFWRU¶VREOLJDWLRQVRWKHUWKDQVSHFLILFDOO\WRFRUUHFWWKH:RUN $FFHSWDQFHRI1RQFRQIRUPLQJ:RUN ,IWKH2ZQHUSUHIHUVWRDFFHSW:RUNWKDWLVQRWLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKH&RQWUDFW'RFXPHQWVWKH 2ZQHUPD\GRVRLQVWHDGRIUHTXLULQJLWVUHPRYDODQGFRUUHFWLRQLQZKLFKFDVHWKH&RQWUDFW6XPZLOOEHUHGXFHGDV DSSURSULDWHDQGHTXLWDEOH6XFKDGMXVWPHQWVKDOOEHHIIHFWHGZKHWKHURUQRWILQDOSD\PHQWKDVEHHQPDGH $57,&/(0,6&(//$1(2863529,6,216 *RYHUQLQJ/DZ 7KH&RQWUDFWVKDOOEHJRYHUQHGE\WKHODZRIWKHSODFHZKHUHWKH3URMHFWLVORFDWHGH[FOXGLQJWKDWMXULVGLFWLRQ¶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¶VULJKWVDQGREOLJDWLRQVXQGHUWKH&RQWUDFW'RFXPHQWV 7KH&RQWUDFWRUVKDOOH[HFXWHDOOFRQVHQWVUHDVRQDEO\UHTXLUHGWRIDFLOLWDWHWKHDVVLJQPHQW $,$'RFXPHQW$±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¶VH[SHQVH ,ISURFHGXUHVIRUWHVWLQJLQVSHFWLRQRUDSSURYDOXQGHU6HFWLRQVDQGUHYHDOIDLOXUHRIWKH SRUWLRQVRIWKH:RUNWRFRPSO\ZLWKUHTXLUHPHQWVHVWDEOLVKHGE\WKH&RQWUDFW'RFXPHQWVDOOFRVWVPDGHQHFHVVDU\ E\VXFKIDLOXUHLQFOXGLQJWKRVHRIUHSHDWHGSURFHGXUHVDQGFRPSHQVDWLRQIRUWKH$UFKLWHFW¶VVHUYLFHVDQGH[SHQVHV VKDOOEHDWWKH&RQWUDFWRU¶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³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¶ QRWLFHWRWKH2ZQHUDQG$UFKLWHFWWHUPLQDWHWKH&RQWUDFWDQGUHFRYHUIURPWKH2ZQHUSD\PHQWIRU:RUNH[HFXWHG 'HOHWHG DVZHOODVUHDVRQDEOHRYHUKHDGDQGSURILWRQ :RUNQRWH[HFXWHGDQGFRVWVLQFXUUHGE\UHDVRQRIVXFK WHUPLQDWLRQ ,IWKH:RUNLVVWRSSHGIRUDSHULRGRIFRQVHFXWLYHGD\VWKURXJKQRDFWRUIDXOWRIWKH&RQWUDFWRUD 6XEFRQWUDFWRUD6XEVXEFRQWUDFWRURUWKHLUDJHQWVRUHPSOR\HHVRUDQ\RWKHUSHUVRQVRUHQWLWLHVSHUIRUPLQJ SRUWLRQVRIWKH:RUNEHFDXVHWKH2ZQHUKDVUHSHDWHGO\IDLOHGWRIXOILOOWKH2ZQH U¶VREOLJDWLRQVXQGHUWKH&RQWUDFW 'RFXPHQWVZLWKUHVSHFWWRPDWWHUVLPSRUWDQWWRWKHSURJUHVVRIWKH:RUNWKH&RQWUDFWRUPD\XSRQVHYHQDGGLWLRQDO GD\V¶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¶VVXUHW\LIDQ\VHYHQGD\V¶ VXIILFLHQWFDXVHH[LVWVWRMXVWLI\VXFKDFWLRQ QRWLFHWHUPLQDWHHPSOR\PHQWRIWKH&RQWUDFWRUDQGPD\VXEMHFWWRDQ\SULRUULJKWVRIWKHVXUHW\ ([FOXGHWKH&RQWUDFWRUIURPWKHVLWHDQGWDNHSRVVHVVLRQRIDOOPDWHULDOVHTXLSPHQWWRROVDQG FRQVWUXFWLRQHTXLSPHQWDQGPDFKLQHU\WKHUHRQRZQHGE\WKH&RQWUDFWRU $FFHSWDVVLJQPHQWRIVXEFRQWUDFWVSXUVXDQWWR6HFWLRQDQG $,$'RFXPHQW$± )LQLVKWKH:RUNE\ZKDWHYHUUHDVRQDEOHPHWKRGWKH2ZQHUPD\GHHPH[SHGLHQW8SRQZULWWHQ UHTXHVWRIWKH&RQWUDFWRUWKH2ZQHUVKDOOIXUQLVKWRWKH&RQWUDFWRUDGHWDLOHGDFFRXQWLQJRIWKHFRVWV LQFXUUHGE\WKH2ZQHULQILQLVKLQJWKH:RUN :KHQWKH2ZQHUWHUPLQDWHVWKH&RQWUDFWIRURQHRIWKHUHDVRQVVWDWHGLQ6HFWLRQWKH&RQWUDFWRUVKDOO QRWEHHQWLWOHGWRUHFHLYHIXUWKHUSD\PHQWXQWLOWKH:RUNLVILQLVKHG ,IWKHXQSDLGEDODQFHRIWKH&RQWUDFW6XPH[FHHGVFRVWVRIILQLVKLQJWKH:RUNLQFOXGLQJFRPSHQVDWLRQIRU WKH$UFKLWHFW¶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¶VFRQYHQLHQFHDQGZLWKRXWFDXVH 8SRQUHFHLSWRIQRWLFHIURPWKH2ZQHURIVXFKWHUPLQDWLRQIRUWKH2ZQHU¶VFRQYHQLHQFHWKH&RQWUDFWRU VKDOO FHDVHRSHUDWLRQVDVGLUHFWHGE\WKH2ZQHULQWKHQRWLFH WDNHDFWLRQVQHFHVVDU\RUWKDWWKH2ZQHUPD\GLUHFWIRUWKHSURWHFWLRQDQGSUHVHUYDWLRQRIWKH:RUN DQG H[FHSWIRU:RUNGLUHFWHGWREHSHUIRUPHGSULRUWRWKHHIIHFWLYHGDWHRIWHUPLQDWLRQVWDWHGLQWKH QRWLFHWHUPLQDWHDOOH[LVWLQJVXEFRQWUDFWVDQGSXUFKDVHRUGHUVDQGHQWHULQWRQRIXUWKHUVXEFRQWUDFWV DQGSXUFKDVHRUGHUV ,QFDVHRIVXFKWHUPLQDWLRQIRUWKH2 ZQHU¶VFRQYHQLHQFHWKH2ZQHUVKDOOSD\WKH&RQWUDFWRUIRU:RUN SURSHUO\H[HFXWHGFRVWVLQFXUUHGE\UHDVRQRIWKHWHUPLQDWLRQLQFOXGLQJFRVWVDWWULEXWDEOHWRWHUPLQDWLRQRI 6XEFRQWUDFWVDQGWKHWHUPLQDWLRQIHHLIDQ\VHWIRUWKLQWKH$JUHHPHQW 125,*+7726723:25.)251213$<0(17 7KH&RQWUDFWRUKDVQRULJKWWRVWRS:RUNRILWV6XEFRQWUDFWRUVRUDOORZWKHPWRVWRS:RUNDVD FRQVHTXHQFHRIQRQSD\PHQW,QWKHHYHQWRIDQ\GLVDJUHHPHQWEHWZHHQWKH&RQWUDFWRUDQG2ZQHULQYROYLQJWKH &RQW UDFWRU¶VHQWLWOHPHQWWRSD\PHQWWKH&RQWUDFWRU¶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³&ODLP´DOVRLQFOXGHVRWKHUGLVSXWHVDQG VKDOOUHVWZLWKWKH&RQWUDFWRU7KLV6HFWLRQGRHVQRWUHTXLUHWKH2ZQHUWRILOHD&ODLPLQRUGHUWRLPSRVH PDWWHUVLQTXHVWLRQEHWZHHQWKH2ZQHUDQG&RQWUDFWRU OLTXLGDWHGGDPDJHVLQDFFRUGDQFHZLWKWKH&RQWUDFW'RFXPHQWV1RWKLQJLQWKLVSDUDJUDSKLVLQWHQGHGWR DULVLQJRXWRIRUUHODWLQJWRWKH&RQWUDFW DSSO\WRRULQDQ\ZD\OLPLWWKH2ZQHU¶VULJKWWRPDNH&ODLPVUHODWHGWRRUDULVLQJRXWRIWKH&RQWUDFW 'HOHWHG SDUW\PDNLQJWKH&ODLP $,$'RFXPHQW$±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¶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± VXJJHVWDFRPSURPLVHRU DGYLVHWKHSDUWLHVWKDWWKH,QLWLDO'HFLVLRQ0DNHULVXQDEOHWRUHVROYHWKH&ODLPLI 'HOHWHG WKH,QLWLDO'HFLVLRQ0DNHUODFNVVXIILFLHQWLQIRUPDWLRQWRHYDOXDWHWKHPHULWVRIWKH&ODLPRULIWKH,QLWLDO'HFLVLRQ (LWKHUSDUW\PD\ILOHIRUPHGLDWLRQRIDQLQLWLDO GHFLVLRQDWDQ\WLPHVXEMHFWWRWKHWHUPVRI6HFWLRQ 0DNHUFRQFOXGHVWKDWLQWKH,QLWLDO'HFLVLRQ0DNHU¶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¶VH[SHQVH GLVSXWHUHVROXWLRQSURFHHGLQJVZLWKUHVSHFWWRWKHLQLWLDO GHFLVLRQ ,IWKH,QLWLDO'HFLVLRQ0DNHUUHTXHVWVDSDUW\WRSURYLGHDUHVSRQVHWRD&ODLPRUWRIXUQLVKDGGLWLRQDO VXSSRUWLQJGDWDVXFKSDUW\VKDOOUHVSRQGZLWKLQWHQGD\VDIWHUUHFHLSWRIWKHUHTXHVWDQGVKDOOHLWKHU SURYLGHD RUVXSSRUWLQJGDWDLIDQ\WKH,QLWLDO'HFLVLRQ0DNHUZLOOHLWKHUUHMHFWRUDSSURYHWKH&ODLP DSRVVLELOLW\RID&RQWUDFWRU¶VGHIDXOWWKH2ZQHUPD\EXWLV LQZKROHRULQSDUW QRWREOLJDWHGWRQRWLI\WKHVXUHW\DQGUHTXHVWWKHVXUHW\¶V DVVLVWDQFHLQUHVROYLQJWKHFRQWURYHUV\ 7KH,QLWLDO'HFLVLRQ0DNHUZLOOUHQGHUDQLQLWLDOGHFLVLRQDSSURYLQJRUUHMHFWLQJWKH&ODLPRULQGLFDWLQJ ,ID&ODLPUHODWHVWRRULVWKHVXEMHFWRIDPHFKDQLF¶V WKDWWKH,QLWLDO'HFLVLRQ0DNHULVXQDEOHWRUHVROYHWKH&ODLP7KLVLQLWLDOGHFLVLRQVKDOO EHLQZULWLQJ VWDWH OLHQWKHSDUW\DVVHUWLQJVXFK&ODLPPD\SURFHHGLQ WKHUHDVRQVWKHUHIRUDQG QRWLI\WKHSDUWLHVDQGWKH$UFKLWHFWLIWKH$UFKLWHFWLVQRWVHUYLQJDVWKH,QLWLDO'HFLVLRQ DFFRUGDQFHZLWKDSSOLFDEOHODZWRFRPSO\ZLWKWKHOLHQ 0DNHURIDQ\FKDQJHLQWKH&RQWUDFW6XPRU&RQWUDFW7LPHRUERWK7KHLQLWLDOGHFLVLRQVKDOOEHILQDODQGELQGLQJ QRWLFHRUILOLQJGHDGOLQHV RQWKHSDUWLHVEXWVXEMHFWWRPHGLDWLRQDQGLIWKHSDUWLHVIDLOWRUHVROYHWKHLUGLVSXWHWKURXJKPHGLDWLRQWRELQGLQJ GLVSXWHUHVROXWLRQ 'HOHWHG &ODLPVGLVSXWHVRURWKHUPDWWHUVLQFRQWURYHUV\ DULVLQJRXWRIRUUHODWHGWRWKH&RQWUDFWH[FHSWWKRVHZDLYHG ,QWKHHYHQWRIDFODLPDJDLQVWWKH&RQWUDFWRUWKH2ZQHUPD\EXWLVQRWREOLJDWHGWRQRWLI\WKHVXUHW\LI DVSURYLGHGIRULQ6HFWLRQVDQGHHRWKHUZLVHVKDOOEHDGPLQLVWHUHGE\WKH$PHULFDQ WRPHGLDWLRQ0HGLDWLRQLVQRWDFRQGLWLRQSUHFHGHQWWRFRPPHQFLQJOLWLJDWLRQEXWLIOLWLJDWLRQLVFRPPHQFHGWKH $UELWUDWLRQ$VVRFLDWLRQLQDFFRUGDQFHZLWKLWV&RQVWUXFWLRQ SDUWLHVDJUHHWRPHGLDWHEHIRUHDQ\GLVSRVLWLYHPRWLRQVRUWULDO7 KHSDUWLHVVKDOOVKDUHHTXDOO\WKHPHGLDWRU¶VIHH ,QGXVWU\0HGLDWLRQ3URFHGXUHVLQHIIHFWRQWKHGDWHRIWKH DQGDQ\ILOLQJIHHV0HGLDWLRQVKDOOEHKHOGLQWKHSODFHZKHUHWKH3URMHFWLVORFDWHGXQOHVVDQRWKHUORFDWLRQLV $JUHHPHQW$UHTXHVWIRUPHGLDWLRQVKDOOEHPDGHLQ PXWXDOO\DJUHHGXSRQ$JUHHPHQWVUHDFKHGLQPHGLDWLRQDQGUDWLILHGE\WKH2ZQHU¶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¶VIHHDQGDQ\ ILOLQJIHHVHTXDOO\7KHPHGLDWLRQVKDOOEHKHOGLQWKHSODFH ZKHUHWKH3URMHFWLVORFDWHGXQOHVVDQRWKHUORFDWLRQLV PXWXDOO\DJUHHGXSRQ$JUHHPHQWVUHDFKHGLQPHGLDWLRQ $,$'RFXPHQW$± *-2 () * " '& &#% $ #+,%+&%- . ; $ $ 4 $ 3 3 + 1 $$ $ . $!&' #!4" *./ () * " "#& +&% ,-#,"& % +& #+ '& ' ! $ #&' #4!5 / $ &,7<2)52&+(67(50,11(627$ )2502)&2175$&7 7+,6$*5((0(17PDGHDQGVLJQHGWKLVBBBBBBBGD\RIBBBBBBBBBBBBBBBBBBBB E\DQGEHWZHHQWKH&LW\RI5RFKHVWHU0LQQHVRWDKHUHLQDIWHUFDOOHGWKH2ZQHUDQG .REDOO¶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¶V6XSSOHPHQWDO5HVSRQVLEOH&RQWUDFWRU&HUWLILFDWH :)RUP &RUSRUDWH$FNQRZOHGJHPHQW 2Q&DOOVQRZDQGLFHUHPRYDORQVLGHZDONVLQWKH&LW\RI5RFKHVWHUIURP 1RYHPEHUWR-XQH Íæīôϙ͐ϙϳϙIJĖťϙŘĖèôŜϙ ϙ ϙϙŘĖèôϙŕôŘϙIJĖťϙæƅϙIJĺſϙôÍŜĺIJ ϙ ÍŜħϙIJĖťϙ͑͏͑͒ϱ͓͑ϙ͑͏͓͑ϱ͑͏͔͑ϙ͑͏͔͑ϱ͑͏͕͑ϙ͑͏͕͑ϱ͑͏͖͑ϙ ϙϙϙ щ͔͗ϙщ͕͏ϙщ͕͑ϙ ϙϙ щ͕͑ϙ aĺæĖīĖƏÍťĖĺIJôŘϙÍŘèôī ϙϙϙ ôıĺŽôϙŜIJĺſϙ ôŘϙ[ĖIJôÍŘϙ щ͏ϟ͕͔ϙщ͏ϟ͖͏ϙщ͏ϟ͖͔ϙ щ͏ϟ͖͔ϙϯϙ[>ϙ ЭϙĖèôϙċŘĺıϙ ϙ >ĺĺťϙϼ[>Ͻ ϙ ŜĖîôſÍīħ ϙϙϙ ôıĺŽôϙŜIJĺſϙ ЭϙĖèôϙċŘĺıϙ щ͓͕ϙщ͔͏ϙщ͔͓ϙ ϙ щ͔͓ϙ (Íèē ŕôîôŜťŘĖÍIJϙ ϙ ŘÍıŕ ϙϙϙ ÍIJîϯŜÍīťϙ ôŘϙ[ĖIJôÍŘϙ щ͏ϟ͓͔ϙщ͏ϟ͔͔ϙщ͏ϟ͕͏ϙ щ͏ϟ͕͏ϙ ŜĖîôſÍīħϙĺŘϙ >ĺĺťϙϼ[>Ͻϙ ŘÍıŕϙ ϙ 5(62/87,21 $ZDUGLQJ&RQWUDFWIRU2Q&DOO6LGHZDON6QRZ5HPRYDO6HUYLFHV :+(5($6&LW\RI5RFKHVWHU2UGLQDQFHUHTXLUHVSURSHUW\RZQHUVWRUHPRYHVQRZ IURPVLGHZDONVDEXWWLQJWKHLUSURSHUW\ZLWKLQKRXUVDIWHUVQRZIDOO :+(5($6WKH&LW\RI5RFKHVWHUPXVWKDYHDPHDQVWRUHPRYHVQRZIURPVLGHZDONVWKDW DUHLQYLRODWLRQRI2UGLQDQFHZKHQSURSHUW\RZQHUVIDLOWRGRVR 12:7+(5()25(%(,75(62/9('E\WKH&RPPRQ&RXQFLORIWKH&LW\RI5RFKHVWHU .REDOO¶V3RXUHG:DOOV,QF2Q&DOO 0LQQHVRWDWKDWWKH&LW\DZDUGVD&RQWUDFWWRIRU 6LGHZDON6QRZ5HPRYDO6HUYLFHVIRUWKH&LW\RI5RFKHVWHU HIIHFWLYH1RYHPEHU ±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³&LW\´ DQG *ULIILQ&RQVWUXFWLRQ D0LQQHVRWDOLPLWHGOLDELOLW\FRPSDQ\ KHUHLQDIWHUUHIHUUHGWRDV2ZQHU DQG &R,QF***,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³&RQWUDFWRU´ DQGD GED*&XEHG 0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHUUHIHUUHGWRDV³'HVLJQ(QJLQHHU´ DQGWRJHWKHU WKH2ZQHU&RQWUDFWRUDQG'HVLJQ(QJLQHHUVKDOOKHUHLQDIWHUFROOHFWLYHO\EHUHIHUUHGWRDVWKH3DUWLHV XQGHUWKHJHQHUDOWHUPVDQGFRQGLWLRQVRIWKLV&RQWUDFW :,71(66(7+7+$7:+(5($6 2ZQHURZQVDQGLVVHHNLQJWRIXUWKHUGHYHORSPHQWUHDOSURSHUW\EHLQJSODWWHGDVD SRUWLRQRI.DGOHF)LUVW$GGLWLRQLQWKH&LW\RI5RFKHVWHU2OPVWHG&RXQW\0LQQHVRWD KHUHLQDIWHUUHIHUUHGWRDVWKH³ 3URSHUW\´ 2ZQHULVUHTXHVWLQJSHUPLVVLRQWRDWLWVRZQH[SHQVHFRQVWUXFWFHUWDLQSXEOLF LQIUDVWUXFWXUHRUSHUIRUPRWKHUSULYDWHZRUNZLWKLQWKHSXEOLFULJKWRIZD\RUSXEOLF HDVHPHQWVO\LQJZLWKLQRUDEXWWLQJWKH3URSHUW\FRQVLVWHQWZLWKWKHDSSURYHGSODQVDQG ³:DWHUPDLQ VSHFLILFDWLRQVWKHUHRISUHSDUHGE\'HVLJQ(QJLQHHUJHQHUDOO\UHIHUUHGWRDV +\GUDQWWR6HUYH7RP.DGOHF.,$±-´ WKHSODQVKHHWGHSLFWHGIRUUHIHUHQFH DVDWWDFKHG([KLELWµ$¶DQGKHUHLQDIWHUUHIHUUHGWRDVWKH³ 3URMHFW´ &LW\LVZLOOLQJWRJUDQW2ZQHUSHUPLVVLRQWRSHUIRUPWKHSXEOLFLPSURYHPHQWVZRUNIRUWKH 3URMHFWXWLOL]LQJ&RQWUDFWRUDWLWVRZQFRVWDQGH[SHQVH XQOHVVRWKHUZLVHVSHFLILFDOO\ QRWHGKHUHLQ DQGVXEMHFWWRWKHWHUPVDQGFRQGLWLRQVKHUHLQLQFOXGLQJIXOOFRPSOLDQFH ZLWKWKHDSSURYHG&LYLO&RQVWUXFWLRQ3ODQVIRUWKH3URMHFW KHUHLQDIWHU3URMHFW3ODQV DQG DGKHUHQFHWRWKH&LW\¶V6WDQGDUG'HVLJQ6SHFLILFDWLRQV 12:7+(5()25(LWLVKHUHE\PXWXDOO\DJUHHGEHWZHHQ&LW\DQG3DUWLHVDVIROORZV 2:1(5¶663(&,),&2%/,*$7,216 , -DVRQ.DSSHUV*&XEHG D 2ZQHU¶VUHSUHVHQWDWLYHZLOOVHUYHDV3URMHFW0DQDJHU IRUWKH3URMHFW7KH3URMHFW0DQDJHULVUHVSRQVLEOHIRUDOOFRRUGLQDWLRQRIWKHZRUN HOHPHQWVLQFOXGLQJ3URMHFWFORVHRXW &KRVHQ E 2ZQHUKDVE\VHSDUDWHGRFXPHQWUHWDLQHGWKHSURIHVVLRQDOVHUYLFHVRI 9DOOH\7HVWLQJ,QF D0LQQHVRWDFRUSRUDWLRQ KHUHLQDIWHU³*HRWHFKQLFDO 3URIHVVLRQDO´ WRSUHSDUHD*HRWHFKQLFDO5HSRUW KHUHLQDIWHU³ 5HSRUW´ IRUWKH3URMHFW 2ZQHULVREOLJDWHGWRPDNHWKHUHVXOWVRIVDLG5HSRUWDYDLODEOHWRWKH&LW\DQGLWV GHVLJQHHVIRUWKHSXUSRVHRIHYDOXDWLQJWKHGHVLJQRIWKH3URMHFWHOHPHQWV F 2ZQHUVKDOORYHUVHHWKH&RQWUDFWRU¶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³ 2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU´ KDVEHHQUHWDLQHGE\&LW\WKURXJKDVHSDUDWH DUUDQJHPHQWWRSHUIRUPFRQVWUXFWLRQREVHUYDWLRQDQGRYHUVLJKWIRUWKH3URMHFW &RQFXUUHQWZLWK2ZQHU¶VH[HFXWLRQRIWKLV&RQWUDFW2ZQHU¶VUHSUHVHQWDWLYHVKDOOSD\ W(QJLQHHU¶VGXWLHV2ZQHUVKDOO FRPPXQLFDWHGLUHFWO\ZLWKWKH&LW\(QJLQHHURUKLVKHUGHVLJQHHWRUHVROYHDQ\ FRQFHUQV I &HUWDLQ'HYHORSPHQW&KDUJHVDSSOLFDEOHWRWKH3URMHFWZHUHLQYRLFHGDW2ZQHU¶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¶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¶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¶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¶VSD\PHQWWR&RQWUDFWRUIRU DOO3URMHFWZRUNHOHPHQWVSHUIRUPHGE\&RQWUDFWRUXQGHUWKHWHUPVRIWKLV DQGPD\QRWODWHUFODLPWKH&LW\KDVYLRODWHG0LQQ6WDW &RQWUDFW LVLQHIIHFWIRUZRUNHUV¶FRPSHQVDWLRQ,QWKHHYHQWWKDWDOORUD SRUWLRQRIWKHZRUNFRQWHPSODWHGE\WKLV&RQWUDFWVKDOOEHGRQHE\&RQWUDFWRU WKURXJKVXEFRQWUDFWRUVLWVKDOOEHWKHUHVSRQVLELOLW\RI&RQWUDFWRUWR GHWHUPLQHDQGUHTXLUHWKDWVXFKVXEFRQWUDFWRUVPDLQWDLQDXWRPRELOHDQG ZRUNHU¶VFRPSHQVDWLRQLQVXUDQFHDVVHWIRUWKDERYHDQGWKDWFHUWLILFDWHVWR WKLVHIIHFWDUHILOHGZLWKWKH&LW\&OHUN&RQWUDFWRUVKDOODOVRHQVXUHWKDWLWV VXEFRQWUDFWRUVDUHDZDUHRIDQGDELGHE\WKHSURYLVLRQVRIWKLV&RQWUDFW ,QVSHFWLRQVDQG$SSURYDOVUHTXLUHPHQWV$OOSROLFLHVRILQVXUDQFHVKDOOEH HQGRUVHGLQGLFDWLQJWKDWLQWKHHYHQWRIFDQFHOODWLRQRUWHUPLQDWLRQRIDQ\ LQVXUDQFHDERYHGHVFULEHG&LW\RI5RFKHVWHULVWRUHFHLYHWKLUW\GD\V¶ZULWWHQ QRWLFHRIWKHLQVXUDQFHFRPSDQ\¶VLQWHQWLRQWRFDQFHORUWHUPLQDWH,IDQ\ LQVXUDQFHFHUWLILFDWHLQGLFDWHVWKHSROLF\VKDOOH[SLUHSULRUWRWKHHQGRIWKH PDLQWHQDQFHSHULRG&RQWUDFWRUVKDOOSURYLGHDQHZFHUWLILFDWHSULRUWRWKH H[SLUDWLRQGDWHLQGLFDWHGRQWKHRULJLQDOFHUWLILFDWHDQGLQDQ\HYHQWVKDOO PDLQWDLQLQVXUDQFHGXULQJVXFKPDLQWHQDQFHSHULRG )DLOXUHWRGRHYHU\WKLQJUHTXLUHGE\WKLV&RQWUDFWPD\EHXVHGDVDEDVLVIRU GHQ\LQJ&RQWUDFWRUWKHRSSRUWXQLW\WRFRQVWUXFWRWKHUSXEOLFLPSURYHPHQW SURMHFWVZLWKLQWKH&LW\ '(6,*1(1*,1((5¶663(&,),&2%/,*$7,216 ,9 D 6WDQGDUGRI&DUH,QSHUIRUPDQFHRILWVGXWLHV'HVLJQ(QJLQHHUVKDOOPDLQWDLQLWV HWKLFDODQGOHJDOGXW\RIDSURIHVVLRQDOWRH[HUFLVHWKHOHYHORIFDUHGLOLJHQFHDQG VNLOOSUHVFULEHGLQWKHFRGHRISUDFWLFHRIKLVRUKHUSURIHVVLRQRUDVRWKHU SURIHVVLRQDOVLQWKHVDPHGLVFLSOLQHZRXOGLQWKHVDPHRUVLPLODUFLUFXPVWDQFHV E 'HVLJQ(QJLQHHUVKDOOPDLQWDLQ(UURUV 2PLVVLRQV,QVXUDQFHIRUDOORILWVGHVLJQ SODQDQGVSHFLILFDWLRQSUHSDUDWLRQDQGUHFRUGGUDZLQJVUHODWHGWRWKH3URMHFW7KH PLQLPXPDJJUHJDWHFRYHUDJHVKDOOEHQRWOHVVWKDQ F 'HVLJQ(QJLQHHUVKDOOSURYLGHUHFRUGGUDZLQJVIRUDOO3URMHFWUHODWHGSXEOLF LQIUDVWUXFWXUHDQGFULWLFDOJUDGLQJHOHPHQWV6DLGUHFRUGGUDZLQJVVKDOOEHSURYLGHG WRWKH&LW\LQDIRUPDWDFFHSWDEOHWRWKH&LW\(QJLQHHU G )DLOXUHWRGRHYHU\WKLQJUHTXLUHGE\WKLV&RQWUDFWPD\EHXVHGDVDEDVLVIRUGHQ\LQJ 'HVLJQ(QJLQHHUWKHRSSRUWXQLW\WRSHUIRUPRWKHUHQJLQHHULQJVHUYLFHVIRUSXEOLF LQIUDVWUXFWXUHZLWKLQWKH&LW\ &2175$&7'2&80(176 97KH&RQWUDFW'RFXPHQWVIRUWKH3URMHFW ³&RQWUDFW 'RFXPHQWV´ ZKLFKDUHPDGHDSDUWKHUHRIWRWKHVDPHH[WHQWDVLIIXOO\VHWIRUWK KHUHLQFRQVLVWRIWKLV&RQWUDFWWKHDSSURYHGSODQVDQGVSHFLILFDWLRQVDQGWKH&LW\ RI5RFKHVWHU¶V6WDQGDUGVIRU6WUHHWDQG8WLOLW\&RQVWUXFWLRQLQHIIHFWRQWKHGDWHILUVW ZULWWHQDERYHDOORIZKLFKDUHLQFRUSRUDWHGKHUHLQE\UHIHUHQFH:RUNVKDOOQRW FRPPHQFHRQWKH3URMHFWXQWLOWKHFLYLOFRQVWUXFWLRQSODQVDQG*UDGLQJ3ODQVKDYH EHHQDSSURYHGDQGWKHDSSURYHGSODQVDQGVSHFLILFDWLRQVIRUWKH3URMHFWDUHRQILOH ZLWKWKH&LW\(QJLQHHU$QRQVLWHPHHWLQJEHWZHHQWKH2ZQHU&RQWUDFWRU'HVLJQ (QJLQHHU2EVHUYDWLRQ 2YHUVLJKW(QJLQHHUDQGWKH&LW\¶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¶V $FFHSWDQFHRIWKHZRUNVKDOOEHPHPRULDOL]HGE\WKH&LW\(QJLQHHU¶VH[HFXWLRQRID VHSDUDWH&LW\$FFHSWDQFH DQH[DPSOH$FFHSWDQFHLVSURYLGHGIRUUHIHUHQFHRQWKH DWWDFKHG([KLELW &LW\(QJLQHHUPD\DFFHSWWKH2ZQHU¶V'HVLJQ(QJLQHHU¶VRU &RQWUDFWRU¶VZRUNLQGHSHQGHQWRIWKHFRPSOHWLRQRIWKHUHPDLQLQJDUWLHV¶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¶VFRPSHQVDWLRQFRYHUDJHXQHPSOR\PHQWLQVXUDQFHEHQHILWV VRFLDOVHFXULW\FRYHUDJHUHWLUHPHQWPHPEHUVKLSRUFUHGLWDQGDQ\DQGDOOVXFK FODLPVDQGDQ\DFWRURPLVVLRQRQWKHSDUWRIDQ\SDUW\¶VHPSOR\HHVZKLOHHQJDJHG LQDQ\ZRUNRUVHUYLFHVXQGHUWKLV&RQWUDFWVKDOOLQQRZD\EHWKHREOLJDWLRQRU UHVSRQVLELOLW\RI&LW\ &203/,$1&(6 ,;,QFRQQHFWLRQZLWKWKHDGPLQLVWUDWLRQDQGSHUIRUPDQFHRIWKHZRUN DXWKRUL]HGE\WKLVFRQWUDFW2ZQHU&RQWUDFWRU'HVLJQ(QJLQHHUVKDOOFRPSO\DQG FDXVHLWVDJHQWVDQGHPSOR\HHVWRFRPSO\ZLWKDOOIHGHUDOVWDWHDQGORFDOODZV WRJHWKHUZLWKDOORUGLQDQFHVDQGUHJXODWLRQVDSSOLFDEOHWRWKLV&RQWUDFWDQGWKHZRUN WREHSHUIRUPHGKHUHXQGHU &21)/,&72),17(5(67'HVLJQ ;)RUWKHFRQVWUXFWLRQRIWKHVHSXEOLFIDFLOLWLHV (QJLQHHU2EVHUYDWLRQ 2YHUVLJKW(QJLQHHU DQGPD\EHUHTXLUHGWRSURYLGH SURIHVVLRQDOVHUYLFHVWRWKH2ZQHUDQGWRWKH&LW\XQGHUDVHSDUDWHFRQWUDFWIRU 3URIHVVLRQDO6HUYLFHV&LW\DQG2ZQHUXQGHUVWDQGWKLVUHODWLRQVKLSDQGZDLYHDQ\ 'HVLJQ(QJLQHHU2EVHUYDWLRQ ULJKWWRFODLPWKDWVHUYLFHVSURYLGHGE\DQG 2YHUVLJKW(QJLQHHU FUHDWHDFRQIOLFWRILQWHUHVWIRUDQ\SXUSRVH ,1'(01,7< ;,2ZQHUDJUHHVWRGHIHQGLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWV RIILFLDOVRIILFHUVDJHQWVDQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVRI ZKDWVRHYHUQDWXUHUHVXOWLQJIURPRUDULVLQJRXWRIWKHQHJOLJHQWRURWKHUZLVH WRUWLRXVDFWLYLWLHVRIWKH2ZQHULWVDJHQWVRUHPSOR\HHVXQGHUWKLV&RQWUDFW7KH 2ZQHUDJUHHVWRGHIHQGDQGSD\DOOFRVWVLQGHIHQGLQJWKHVHFODLPVLQFOXGLQJ DWWRUQH\¶VIHHV &RQWUDFWRUDJUHHVWRGHIHQGLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWVRIILFLDOV RIILFHUVDJHQWVDQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVRIZKDWVRHYHUQDWXUH UHVXOWLQJIURPRUDULVLQJRXWRIWKHQHJOLJHQWRURWKHUZLVHWRUWLRXVDFWLYLWLHVRIWKH &RQWUDFWRURULWVVXEFRQWUDFWRUVDJHQWVRUHPSOR\HHVXQGHUWKLV&RQWUDFW7KH &RQWUDFWRUDJUHHVWRGHIHQGDQGSD\DOOFRVWVLQGHIHQGLQJWKHVHFODLPVLQFOXGLQJ DWWRUQH\¶VIHHV 'HVLJQ(QJLQHHUDJUHHVWRLQGHPQLI\DQGKROGKDUPOHVVWKH&LW\LWVRIILFLDOVRIILFHUV DJHQWVDQGHPSOR\HHVIURPDOOFODLPVVXLWVRUDFWLRQVUHVXOWLQJIURPRUDULVLQJRXW RIWKHQHJOLJHQWDFWLYLWLHVRI7KH'HVLJQ(QJLQHHURULWVVXEFRQWUDFWRUVDJHQWVRU HPSOR\HHVXQGHUWKLV&RQWUDFW7KH'HVLJQ(QJLQHHUDJUHHVWRUHLPEXUVHDOOFRVWV RIWKHVHFODLPVLQFOXGLQJDWWRUQH\¶VIHH :$,9(5 ;,,7KHIDLOXUHRIWKH&LW\WRHQIRUFHDQ\SURYLVLRQVRIWKLV&RQWUDFWVKDOOQRW FRQVWLWXWHDZDLYHUE\WKH&LW\RIWKDWRUDQ\RWKHUSURYLVLRQ 0(5*(5&/$86( ;,,,7KLV&RQWUDFWFRQVWLWXWHVWKHILQDOH[SUHVVLRQRIWKH3DUWLHV¶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¶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rial]]IRUXPQRQFRQYHQLHQV [[2182,1905,2259,1957][11][,,][Arial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rial]]>6LJQDWXUH3DJHV)ROORZ@ [[1521,2745,1534,2798][11][,I,][Arial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¶V&HUWLILFDWLRQRI$FFHSWDQFH (52 &' ( %*, " $3 !-++#,2,2&#+'*2- '27-$-!#0'27*#0) -!#0 #,",#+'*2-7-30',"'4'"3*-3,!'*+#+ #0±$',"2&#'0#+'*""0#11#1-,2&# &LW\¶VZHEVLWHXQGHU'27-3,!'*±-3,!'*#+ #01 #,",#+'*2-2&#$3**-3,!'*2!'27!-3,!'*0-!#0+,%-4 4XHVWLRQV"&RQWDFWWKH&LW\&OHUN¶V2IILFH 12 () * & %') ,- & & ,- & ,! 0 1 , ( *1 +1 5 1 8& //, 1 & 1 # $ % " # % & *"#%+, - 3 - $ //332,, '375 % & $ & 9 *%$ + & , % 1 2 % & '() *%')+:; <8* , &+ &4*.$$!" ! & =& $> !"%') & ' $& $"/ & 3/$1 3/$1 $118$/$&7,21 &2162/,'$7(' &'%* 6HSWHPEHU 7KHFRQVROLGDWHGSODQQLQJSURFHVVVHUYHVDVWKHIUDPHZRUNIRUDFRPPXQLW\ ZLGHGLDORJXHWRLGHQWLI\KRXVLQJDQGFRPPXQLW\GHYHORSPHQWSULRULWLHVWKDW WRGRFXPHQWWKH DOLJQDQGIRFXVIXQGLQJIURPWKH&3'IRUPXODEORFNJUDQWSURJUDPV +8'&RQVROLGDWHG3ODQQLQJ SODQQLQJGRFXPHQWV $QDO\VLVRI,PSHGLPHQWVWR)DLU+RXVLQJ&KRLFH 7KH&LW\KDVSUHSDUHGWKHIROORZLQJ &LW\¶VEDUULHUVDQGSULRULWLHV $QQXDO$FWLRQ3ODQ &RQVROLGDWHG3ODQ 3URYLGH2SSRUWXQLWLHVIRUUDFLDOO\DQGHWKQLFDOO\LQFOXVLYHKRXVLQJSDWWHUQV RYHUFRPHDQ\LPSHGLPHQWVRUEDUULHUVWRIDLUKRXVLQJLGHQWLILHGGXULQJWKHLU 5RFKHVWHUPXVWWDNHDFWLRQWRDGGUHVVDQ\LGHQWLILHGLPSHGLPHQWVE\ +8'UHTXLUHVDOOJUDQWHHVWRLGHQWLI\DVWUDWHJ\IRUWKHLUFRPPXQLW\WR ,GHQWLI\VWUXFWXUDODQGV\VWHPDWLFEDUULHUVWRIDLUKRXVLQJFKRLFH 3URPRWLQJ)DLU+RXVLQJIRUDOO3URWHFWHG&ODVVHV $QDO\VLVRI,PSHGLPHQWVWR)DLU+RXVLQJ&KRLFH 3ODQQLQJ'RFXPHQWV 3URPRWH$'$DFFHVVLEOHKRXVLQJ QHHGVDVVHVVPHQWRXWUHDFK 'HYHORSFXOWXUDOO\DSSURSULDWHRXWUHDFKPDWHULDOVLQFOXGLQJ6RPDOLDQDQG+LVSDQLF /,0,7(')$,5+286,1*('8&$7,21$1'$:$5(1(66 HGXFDWLRQPXVWEHFRQWLQXRXVDQGSUHVHQWHGLQDFRQWH[WWKDWLVUHODWLYHWRWKHFXUUHQW $VWKH&LW\FRQWLQXHVWRH[SDQGZLWKDQLQFUHDVLQJO\GLYHUVHSRSXODWLRQIDLUKRXVLQJ )XQGDQGSURPRWH)DLU+RXVLQJ(GXFDWLRQDQG+RXVLQJ&RXQVHOLQJZLWK&'%* 6HHNSXEOLFDQGSULYDWHSDUWQHUVWRGLVVHPLQDWHIDLUKRXVLQJLQIRUPDWLRQ 'HYHORSRXWUHDFKPDWHULDOVWRHGXFDWHRQ/DQGORUG7HQDQW5LJKWVDQG ([SDQG)DLU+RXVLQJ(GXFDWLRQDQG2XWUHDFK ,PSHGLPHQWV 5(&200(1'$7,216 FRPPXQLW\FRQFHUQV 5HVSRQVLELOLWLHV ,1&20081,7< &RPPXQLWLHV ,03(',0(17 FRPPXQLW\GHYHORSPHQWDIIRUGDEOHKRXVLQJKRPHOHVVQHHGVDQGSULRULWLHV(YHU\\HDU+8'UHTXLUHVDSODQWKDWGHWDLOVSURMHFWVDQGDFWLYLWLHVSURSRVHG $VDUHFLSLHQWRIIHGHUDOJUDQWIXQGVWKH&LW\LVUHTXLUHGE\+8'WRSURGXFH WRPHHWWKHVWUDWHJLFQHHGVDQGJRDOVLGHQWLILHGLQWKH&RQVROLGDWHG3ODQ 7KHVHSODQVVHUYHDVWKHDSSOLFDWLRQIRUIXQGLQJIRUWKH&LW\¶V&RPPXQLW\ <HDU6WUDWHJLF3ODQNQRZQDVWKH&RQVROLGDWHG3ODQWRLGHQWLI\ 3ODQQLQJ'RFXPHQWV 'HYHORSPHQW%ORFN*UDQW $118$/$&7,213/$1 &2162/,'$7('3/$1 RIWKH&LW\ D :H KHUH ŝƚLJ͛ƐƌĞƋƵĞƐƚĂŶĚƐƵďŵŝƐƐŝŽŶŽĨ DUH ƌĞǀŝƐŝŽŶƐͬĞĚŝƚƐŵĂĚĞƵƉŽŶƚŚĞ ƚŚĞĨŝŶĂůĚƌĂĨƚĨŽƌŝƚLJĂƉƉƌŽǀĂů͘ WƌĞƐĞŶƚĂƚŝŽŶͬƉƉƌŽǀĂů WŚĂƐĞdŚƌĞĞŝŶĐůƵĚĞƐ W,^d,Z &ŝŶĂůƌĂĨƚ ƐƚĂŬĞŚŽůĚĞƌĨĞĞĚďĂĐŬĐŽŵƉŝůĂƚŝŽŶ͕ ĂƚĂŶĂůLJƐŝƐͬŽĐƵŵĞŶƚƌĂĨƚŝŶŐ ĂŶĂůLJƐŝƐ͕ĂŶĚĚŽĐƵŵĞŶƚĚƌĂĨƚŝŶŐ͘ WŚĂƐĞdǁŽŝŶĐůƵĚĞƐĚĂƚĂĂŶĚ W,^dtK ŶĂůLJƐŝƐ 3ODQQLQJ3URFHVV WŚĂƐĞKŶĞĞŶƐƵƌĞƐĂŶŝŶĐůƵƐŝǀĞ͕ ĂƚĂŽůůĞĐƚŝŽŶĂŶĚ/ŶƚĞƌǀŝĞǁƐ ƉĂƌƚŝĐŝƉĂƚŽƌLJƉƌŽĐĞƐƐĨŽƌƚŚĞ ŽŵŵƵŶŝƚLJ/ŶƉƵƚĐƚŝǀŝƚŝĞƐ ůĂƌŐĞĂŶĚ ŝŶĐůƵĚĞƐĞdžƚĞŶƐŝǀĞƉƵďůŝĐ W,^KEƉĂƌƚŝĐŝƉĂƚŝŽŶ͘ Ͳ Ăƚ Ͳ ƐƚĂŬĞŚŽůĚĞƌƐ 3XEOLF,QIUDVWUXFWXUHDQG,PSURYHPHQWV $)),50$7,9(/<)857+(5,1*)$,5 )DFLOLW\DFTXLVLWLRQRUUHKDELOLWDWLRQ +286,1*&20081,7< 3XEOLF)DFLOLW\,PSURYHPHQWV )DLUKRXVLQJDFWLYLWLHV '(9(/230(17 +286,1* 6WUDWHJLF3ULRULWLHV 121 $&&(667238%/,&6(59,&(6 +RPHOHVVVHUYLFHV RSHUDWLRQV +RPH5HSDLUIRU+RPHRZQHUV $&&(6672$))25'$%/( +RPHRZQHUVKLS$VVLVWDQFH :RUNIRUFHGHYHORSPHQW 5HQWDO5HKDELOLWDWLRQ 'LVDELOLW\VHUYLFHV <RXWKVHUYLFHV 7UDQVSRUWDWLRQ +286,1* )XQGLQJ5HFRPPHQGDWLRQV ,QIUDVWUXFWXUH >@ $GPLQLVWUDWLRQ >@ &RXQFLOWRFRQVLGHUEHIRUHWKHLU 5RFKHVWHU&RPPXQLW\'HYHORSPHQW $Q\SDUW\ZKRZLVKHVWRVSHDNDERXWWKHSURSRVHGDFWLYLWLHVUHFRPPHQGHGIRUWKH &RQVROLGDWHG3ODQ $FWLRQ3ODQDQGZLOOEHLQFOXGHGLQ YLDPDLOHPDLORUKDQGGHOLYHU\WR LQ WRQRRQ &RQVROLGDWHG3ODQLVHQFRXUDJHGWRGRVRQRZ FODVVURRP%DW'HYHORSPHQW6HUYLFHV,QIUDVWUXFWXUH&HQWHU '6,& IURP 69(1%<6(1,25$'0,1,675$7,9($1$/<67 EVYHQE\#URFKHVWHUPQJRY WK 7XHVGD\6HSWHPEHU :HVW5LYHU3DUNZD\1:6XLWH 5RFKHVWHU&LW\ &RPPXQLW\'HYHORSPHQW'HSDUWPHQW 0RQGD\1RYHPEHU $OOZULWWHQFRPPHQWVPXVWEHUHFHLYHGDWWKH&LW\RI 5RFKHVWHU01 &LW\RI5RFKHVWHU 3XEOLF&RPPHQWV (PDLO $OOSXEOLFFRPPHQWVZLOOEHSURYLGHGWRWKH 2SHQKRXVHWRJDWKHUFRPPHQWV 3KRQH 3ODQ $FWLRQ &RQVROLGDWHG &LW\6XEPLWV 3ODQWR+8' 6SULQJ )LQDO $OORFDWLRQWRWKH 'D\3XEOLF LIQHFHVVDU\ &RPPHQWRQ )LQDO+8' &LW\ $QQRXQFHPHQW +8' $OORFDWLRQ 6SULQJ 3ODQ$SSURYDO 3ODQ $FWLRQ &RQVROLGDWHG 1RYHPEHU 7LPHOLQH (VWLPDWHGIXQGLQJ )XQGLQJ $XJXVW $SSURYDO 48(67,216&200(176 + () * 3 ) "" )( ( " ( , ( - ( , "( (../ ( "( ./$ ( - ( ( ) ( "" %( - !" WŚŽŶĞ͗ϱϬϳͲϯϮϴͲϮϵϱϬ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂ &Ădž͗ϱϬϳͲϯϮϴͲϮϰϬϭ ϰϬϬϭtZŝǀĞƌWĂƌŬǁĂLJEt͕^ƵŝƚĞϭϬϬ ŵĂŝů͗ŽŵŵƵŶŝƚLJĞǀĞůŽƉŵĞŶƚΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀ ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭͲϳϬϵϬ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ϮϮϬϮϰͲϬϮϯW>d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¶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ϯϮϬϮϰͲϬϮϯW>d :HWODQGV'HFRUDK 7KH2OPVWHG&RXQW\3ODQQLQJ'HSDUWPHQW /*8 KDVDSSURYHG WKHDSSOLFDQW¶V'HFRUDK(GJHUHSRUWDQGDSSURYHGWKH (GJH)ORRGSODLQ DSSOLFDWLRQIRUWKHVXEMHFWVLWH ͘ 3XEOLF)DFLOLWLHV 3UHVHQWO\SXEOLFIDFLOLWLHVH[LVWWRVHUYLFHWKHVLWH:DWHUDQG VHZHUOLQHPDLQVDUHERWKFXUUHQWO\ORFDWHGRQWK6WUHHW6: IURQWLQJWKHVL[ORWV'HYHORSPHQWRIHDFKLQGLYLGXDOORWLVVXEMHFW WRD3ODQW,QYHVWPHQW)HH 3,) WKDWZLOOEHFDOFXODWHGDQG FROOHFWHGWKURXJKWKH%XLOGLQJ3HUPLWUHYLHZDQGDSSURYDO SURFHVVIRUHDFKGZHOOLQJ 8WLOLWLHV 3UHVHQWO\SXEOLFIDFLOLWLHVH[LVWWRVHUYLFHWKHVLWH,IFRQQHFWHGWR WKH0DLQ/HYHO:DWHU6\VWHP6WDWLFZDWHUSUHVVXUHVZLOOUDQJH IURPI,][Arial]] &2 [[1152,2339,1370,2396][12][B,I,][Arial]]03/(7( [[1370,2339,1384,2396][12][,,][Arial]] 3ULRUWRVXEPLWWDORIWKH)LQDO3ODWWKHDSSOLFDQWVKDOOUHYLVHWKHFRQVWUXFWLRQSODQV WRWKHVDWLVIDFWLRQRI538:DWHU[[1191,2491,1386,2548][12][B,I,][Arial]] &203/ [[1387,2491,1499,2548][12][B,I,][Arial]](7( [[1500,2491,1514,2548][12][,,][Arial]] 3ULRUWRUHFRUGDWLRQRIWKH)LQDO3ODWWKHDSSOLFDQWVKDOOPHHWWKHLUERXOHYDUGWUHH DQGSDUNODQGREOLJDWLRQ[[997,2663,1682,2720][12][B,I,][Arial]] &21',7,212)$33529$/ [[1683,2663,1697,2720][12][,,][Arial]] 3ULRUWRUHFRUGDWLRQRIWKH)LQDO3ODWH[HFXWLRQRID&LW\SUHSDUHG&RQWULEXWLRQ $JUHHPHQWLVUHTXLUHG6DLGDJUHHPHQWZLOOPHPRULDOL]HWHUPVDQGFRQGLWLRQV ϰϮϬϮϰͲϬϮϯW>d UHODWHGWRIXWXUHUG$YHQXH6:DQGWK6WUHHW6:REOLJDWLRQVDQGREOLJDWLRQV IRUIXWXUHSHGHVWULDQIDFLOLWLHVDORQJVDLGIURQWDJH[[1556,364,1864,421][12][B,I,][Arial]] &203/(7( [[1865,364,1879,421][12][,,][Arial]] 3ULRUWRUHFRUGDWLRQRIWKH)LQDO3ODWDFURVVDFFHVVDJUHHPHQWHDVHPHQWDQGD VKDUHGPDLQWHQDQFHDJUHHPHQWDQGSULYDWHXWLOLW\HDVHPHQWLVUHTXLUHGIRUDFFHVV DQGIRUWKHVKDUHGXWLOLW\VHUYLFHVVHUYLQJWKHVL[ORWVLQWKHGHYHORSPHQW [[454,689,633,746][12][B,I,][Arial]] &21', [[631,689,1138,746][12][B,I,][Arial]]7,212)$33529$/ [[1140,689,1154,746][12][,,][Arial]] 7KHH[LVWLQJGULYHDSSURDFKHVDEXWWLQJWK6WUHHW6:DQGWKHGULYHDSSURDFK H[FHVVELWXPLQRXVDEXWWLQJUG$YHQXH6:VKDOOEHUHPRYHGDQGWKHERXOHYDUG DQGWKHWXUIUHHVWDEOLVKHGFRQFXUUHQWZLWKGHYHORSPHQW[[1846,955,1976,1012][12][B,I,][Arial]] &21 [[1973,955,2259,1012][12][B,I,][Arial]]',7,212) [[453,1012,670,1069][12][B,I,][Arial]]$33529 [[662,1012,746,1069][12][B,I,][Arial]]$/ [[747,1012,761,1069][12][,,][Arial]] &ŝŶĂůWůĂƚηϮϬϮϰͲϬϮϯW>d͕ďLJWĞĂŬĞƐŝŐŶĂŶĚŽŶƐƚƌƵĐƚŝŽŶ͕ ƚŽďĞŬŶŽǁŶĂƐKĂŬZŝĚŐĞsŝůůĂƐ͕ĨŽƌƚŚĞƐƵďĚŝǀŝƐŝŽŶŽĨϭ͘Ϯϱ ĂĐƌĞƐŝŶƚŽϲƌĞƐŝĚĞŶƚŝĂůůŽƚƐ͘dŚĞƐŝƚĞŝƐůŽĐĂƚĞĚĂƚƚŚĞŶŽƌƚŚĞĂƐƚ ĐŽƌŶĞƌŽĨϯƌĚǀĞŶƵĞ^tĂŶĚϮϬƚŚ^ƚƌĞĞƚ^t͘ W/E͗ϬϬϴϰϮϱ EŽƚŝĨƌĞĂ͗ϰϬϬΖ tĂƌĚϭ 66(< 0 :6( 2 2 $JHQF\5HYLHZ&RPPHQWV $SSOLFDWLRQ1R&'3/$7 &RXQW\*,6( 7KHUHDUHQRFRPPHQWVDWWKLVWLPHIURPWKH($GGUHVVLQJ'LYLVLRQ6WDII &RXQW\/RQJ5DQJH3ODQQLQJ 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH &RXQW\3XEOLF:RUNV )LUH5HYLHZ /*8 1RDGGLWLRQFRPPHQWVDUHUHTXLUHG7KHDSSOLFDWLRQKDVP\UHYLHZRIWKH'HFRUDK '(2 DQGWKHDSSURYDORI WKHUHSRUW 3XEOLF:RUNV5HYLHZ 6HHDWWDFKHGFRPPHQWLQ$FFHODVRIWZDUH 538(OHFWULF5HYLHZ 7KHUHDUHQRFRPPHQWVIURPWKLVDJHQF\DWWKLVWLPH 538:DWHU5HYLHZ 1RIXUWKHUFRPPHQWV3OHDVHVHH538:DWHU'HSDUWPHQW¶V,QIRUPDWLRQ/HWWHUGDWHGIRUPRUH LQIRUPDWLRQ $03DJHRI 72&RPPXQLW\'HYHORSPHQW :HVW5LYHU3DUNZD\1:6XLWH 5RFKHVWHU01 ),5('(3$570(17 )D[ ^ŝŶĐĞƌĞůLJ͕ :ĂƐŽŶ&ŝĨĞ ƐƐŝƐƚĂŶƚ&ŝƌĞDĂƌƐŚĂů WK6WUHHW6(67(5RFKHVWHU01 52&+(67(53$5.$1'5(&5($7,21 '(3$570(175()(55$/&200(176)250 '$7( 6HSWHPEHU 72 &RPPXQLW\'HYHORSPHQW 5( 2DN5LGJH9LOODV &'3ODW $FUHDJHRISODW«««««««««««««««««««DFUHV 1XPEHURIGZHOOLQJXQLWV««««««««««««««QHZXQLWV 'HQVLW\IDFWRU«««««««««««««««««««« 'HGLFDWLRQ«««««««««««««««««««««DFUHV )DLUPDUNHWYDOXHRIODQG««««««««««««««« 3$5.'(',&$7,215(48,5(0(176 $VODQGVXEGLYLVLRQLVRFFXUULQJIRUUHVLGHQWLDOSXUSRVHVWKH3DUNODQG'HGLFDWLRQ x 2UGLQDQFHLVDSSOLFDEOH7KLVDUHDLVFXUUHQWO\VHUYHGE\*RRG6KHSKHUG3DUNWRWKH ZHVWDQG0HDGRZ3DUNWRWKHHDVW7KHUHIRUHGHGLFDWLRQUHTXLUHPHQWVVKRXOGEHPHW YLDFDVKLQOLHXRIODQG3D\PHQWLQWKHDPRXQWRI DFUHV DFUH VKDOOEHSDLGSULRUWRUHFRUGDWLRQRIWKHILQDOSODW x %28/(9$5'75((5(48,5(0(176 %RXOHYDUG7UHHVDUHUHTXLUHGDORQJSXEOLFVWUHHWVDW¶RQFHQWHU3ULRUWRSODQWLQJ x ERXOHYDUGWUHHVDWUHHSODQWLQJSHUPLW IUHH LVUHTXLUHGSHUWKHERXOHYDUGWUHHRUGLQDQFH $VSDUWRIWKHSHUPLWSURFHVV)RUHVWU\VWDIIZLOOUHYLHZWKHODQGVFDSHSODQIRUVSHFLHV ORFDWLRQDOFULWHULDDQGVLWHFRQGLWLRQV$ERXOHYDUGWUHHSODQWLQJLQIRUPDWLRQVKHHWLV DYDLODEOHWKURXJKWKH)RUHVWU\'LYLVLRQDW ZZZURFKHVWHUPQJRY &HUWLILFDWHRI ĚŵŝŶŝƐƚƌĂƚŝǀĞ ,QVSHFWLRQV 2FFXSDQF\ %XLOGLQJ 'HYHORSPHQW :ƵĚŝĐŝĂů $JUHHPHQW 'ĞŶĞƌĂůůLJ Ͳ YƵĂƐŝ ĚŵŝŶŝƐƚƌĂƚŝǀĞ %XLOGLQJ 3HUPLW 0DMRU/DQG 6XEGLYLVLRQ :ƵĚŝĐŝĂů Ͳ YƵĂƐŝ :ƵĚŝĐŝĂů )LQDO3ODW Ͳ YƵĂƐŝ 1HLJKERUKRRG ,QIRUPDWLRQ ĚŵŝŶŝƐƚƌĂƚŝǀĞ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³2DN5LGJH9LOODV´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ŚŽŶĞ͗ϱϬϳͲϯϮϴͲϮϵϱϬ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ͕DŝŶŶĞƐŽƚĂ &Ădž͗ϱϬϳͲϯϮϴͲϮϰϬϭ ϰϬϬϭtZŝǀĞƌWĂƌŬǁĂLJEt͕^ƵŝƚĞϭϬϬ ŵĂŝů͗ŽŵŵƵŶŝƚLJĞǀĞůŽƉŵĞŶƚΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀ ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭͲϳϬϵϬ 3ODQQLQJ&RPPLVVLRQ6HSWHPEHU 3UHSDUHGE\ 5RFKHVWHU&RPPXQLW\'HYHORSPHQW 5HTXHVW 9DFDWLRQ&'9$&E\WRYDFDWHDSRUWLRQRIDIRRWXWLOLW\ HDVHPHQWRQ/RW%ORFN%DPEHU5LGJH)RXUWK6XEGLYLVLRQ /RFDWLRQ 6XEMHFWHDVHPHQWLVORFDWHGDWWKHVWUXFWXUH$QHZ8(HDVHPHQWDUHDZLOOEHHVWDEOLVKHGRQWKH DGMRLQLQJSURSHUW\FRQFXUUHQWO\ZLWKWKHUHVROXWLRQIRUYDFDWLQJWKHVXEMHFWHDVHPHQW DUHD7KHGRFXPHQWJUDQWLQJWKHQHZHDVHPHQWKDVEHHQH[HFXWHGE\WKHDGMRLQLQJ RZQHUDQGVXEPLWWHGWR3XEOLF:RUNV6LQFHWKHUHDUHQRXWLOLWLHVLQWKHYDFDWLRQDUHD DQGEHFDXVHD¶8(FRUULGRUZLOOUHPDLQWKHHDVHPHQWDUHDVRXJKWWREHYDFDWHGLVQR ORQJHUQHHGHG3OHDVHVHHWKHH[KLELWRQWKHIROORZLQJSDJHVKRZLQJWKHRYHUODSRIWKH VWUXFWXUHXSRQWKHH[LVWLQJHDVHPHQW ϮϮϬϮϰͲϬϬϱs 9$&$7,213(7,7,215(9,(: 8QGHUWKHSURYLVLRQVRI6HFWLRQ.F&RXQFLOVKDOODSSURYHD3XEOLF8WLOLW\ (DVHPHQW9DFDWLRQLILWGHWHUPLQHVWKHDSSOLFDWLRQFRPSOLHVZLWKWKHIROORZLQJFULWHULD D7KHYDFDWLRQRIWKHSXEOLFXWLOLW\HDVHPHQWLVLQWKHSXEOLFLQWHUHVWDQGZLOOFRQIHU DSXEOLFEHQHILWRQWKH&LW\ 9DFDWLQJWKHHDVHPHQWZKHUHWKHVWUXFWXUHRYHUODSVLVLQWKHSXEOLFLQWHUHVW7KH $SSOLFDQWKDVZRUNHGZLWKWKHDGMRLQLQJRZQHURQWKHZHVW sĂĐĂƚŝŽŶWĞƚŝƚŝŽŶηϮϬϮϰͲϬϬϱs͕ďLJ,ƵŵĂLJŽƵŶŬŚƚĞƌ͕ƚŽ ǀĂĐĂƚĞĂƉŽƌƚŝŽŶŽĨĂϭϬͲĨŽŽƚƵƚŝůŝƚLJĞĂƐĞŵĞŶƚŽŶ>Žƚϯϲ͕Ždžϯ͕ ĂŵďĞƌZŝĚŐĞ&ŽƵƌƚŚ^ƵďĚŝǀŝƐŝŽŶ͘dŚĞƐŝƌĞŝƐůŽĐĂƚĞĚĂƚϭϳϮϴ :ƵŶŝƉĞƌ>ĂŶĞ^t͘ EŽƚŝĨƌĞĂ͗ϰϬϬΖ tĂƌĚϭ W/E͗ϬϱϮϯϴϱ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rial]] 3DJH $XJXVW 3DJH )LQDO$8$5 $XJXVW 3DJH )LQDO$8$5 $XJXVW 3URMHFW'HVFULSWLRQ 7KH$8$5VWXG\DUHDLVORFDWHGZLWKLQWKHGRZQWRZQ0HGLFDO,QVWLWXWLRQDO&DPSXV6SHFLDO 'LVWULFWZLWKLQFHQWUDO5RFKHVWHU7KHRYHUDOOFDPSXVLQFOXGHVPRUHWKDQEXLOGLQJVWKDWVHUYH ¶V 0D\R&OLQLFLQSDWLHQWDQGRXWSDWLHQWPHGLFDOFDUHUHVHDUFKHGXFDWLRQDQGPHGLFDOVXSSRUW 0D\R¶VH[WHQGHGFDPSXV IXQFWLRQVZLWKLQWKHGRZQWRZQFDPSXVDUHDDVZHOODVWKURXJKRXW FOLQLFV7KH$8$5VWXG\DUHDFRQVLVWVRIDSSUR[LPDWHO\GHGWRWKH VRXWKHDVWZLWKLQWKHIRRWSULQWRIWKHH[LVWLQJSDUNLQJDUHDZHVWRIQG$YHQXH7KHH[SDQVLRQZLOO LQWHUFRQQHFWZLWKWKHH[LVWLQJSODQWEXLOGLQJDQGKDYHVLPLODUW\SHVRILQWHULRUVSDFHVDQGURRPV ZLWKWKHDGGLWLRQRIERLOHUURRPIRUWKH&+3DQGVWHDPSURGXFWLRQHTXLSPHQW(DVWRIQG $YHQXHWKHSDUNLQJORWZLOOEHUHFRQVWUXFWHG(TXLSPHQWLQWKHSODQWH[SDQVLRQZLOOJHQHUDOO\EH RSHUDWLRQDOO\LQGHSHQGHQWRIWKHH[LVWLQJ383DQGLQFOXGHDOOPDMRUDQGDQFLOODU\HTXLSPHQWWR SURGXFHFKLOOHGZDWHUVWHDPQRUPDOSRZHUDQGHVVHQWLDOSRZHU7KH&+3ZLOOEHFRPSULVHGRID QRPLQDOPHJDZDWWV 0: FRPEXVWLRQWXUELQHJHQHUDWRUDQGKHDWUHFRYHU\VWHDPJHQHUDWRU 7KHSURSRVHGHOHFWULFJHQHUDWLQJIDFLOLW\ZLOOEHGHVLJQHGIRURSHUDWLQJDWDFDSDFLW\RIOHVVWKDQ 0:DQGZLOOWDNHDIXHOUHVWULFWLRQWRJHQHUDWHOHVVWKDQWRQVSHU\HDURIJUHHQKRXVH JDVHPLVVLRQV &2H 7KHHOHFWULFJHQHUDWLQJIDFLOLW\LVEHLQJLQFOXGHGLQWKH$8$5HYDOXDWLRQ IRUWKHSXUSRVHRILGHQWLI\LQJSRWHQWLDOFXPXODWLYHHIIHFWV7KHIDFLOLW\GRHVQRWUHTXLUH HQYLURQPHQWDOUHYLHZEDVHGRQ015XOH6XESW 7KLVGHYHORSPHQWVFHQDULRLVFRQVLVWHQWZLWKWKH&RPSUHKHQVLYH3ODQ 7DEOH2YHUYLHZRI'HYHORSPHQW6FHQDULR 'HYHORSPHQW7\SH6FHQDULR 0HGLFDO,QVWLWXWLRQDO $XJXVW &RQVWUXFWLRQRIWKHIDFLOLWLHVZLWKLQWKHUHGHYHORSPHQWVWXG\DUHDLVDQWLFLSDWHGWRRFFXURYHUWKH QH[W\HDUV(QDEOLQJZRUNVXFKDVUHPRYDORIH[LVWLQJEXLOGLQJVDQGFRQVWUXFWLRQRIQHZ LQIUDVWUXFWXUHWRVXSSRUWWKHIDFLOLWLHVZLOORFFXUILUVW 7KHLQWHQWRIWKH$8$5LVWRUHFRJQL]HWKHPRVWSRWHQWLDOO\LPSDFWIXOGHYHORSPHQWVFHQDULRDQG LGHQWLI\PLWLJDWLRQPHDVXUHVWKDWPD\EHWDNHQWRFRPSHQVDWHIRUWKRVHLPSDFWV5HGHYHORSPHQW RIWKHVWXG\DUHDZRXOGLQFOXGHUHPRYDORIH[LVWLQJEXLOGLQJVQHZLQIUDVWUXFWXUHLQFOXGLQJZDWHU VHUYLFHVHZHUVWRUPZDWHUVWUHHWVDQGXWLOLWLHV$OOQHZVHUYLFHVZRXOGEHH[WHQVLRQVWRH[LVWLQJ LQIUDVWUXFWXUHRUXSJUDGLQJH[LVWLQJV\VWHPVWRVXSSRUWWKHUHGHYHORSPHQW,PSURYHPHQWVWR H[LVWLQJLQIUDVWUXFWXUHRUQHZLQIUDVWUXFWXUHZLOOEHFRQVLVWHQWZLWK&LW\RI5RFKHVWHUUHTXLUHPHQWV DQGDOODSSOLFDEOHVWDQGDUGV,QIUDVWUXFWXUHFRQVWUXFWLRQUHFRQVWUXFWLRQLQFOXGHVQHZZDWHUPDLQ VDQLWDU\VHZHUDQGVWRUPZDWHUSLSLQJVWRUPZDWHUEDVLQVSXEOLFURDGZD\VHOHFWULFGXFWEDQNV WUDLOVDQGVLGHZDONV HPSHUDWXUH $FFRUGLQJWRWKH0LQQHVRWD&OLPDWH([SORUHUWKHKLVWRULFDYHUDJHWHPSHUDWXUHLQ2OPVWHG &RXQW\EHWZHHQDQGZDVDSSUR[LPDWHO\ $XJXVW )ORRG5LVN &OLPDWHFKDQJHFDQH[DFHUEDWHWKHIUHTXHQF\DQGLQWHQVLW\RIH[WUHPHUDLQIDOOHYHQWVDQG DVVRFLDWHGIORRGLQJLQVRPHORFDWLRQV$FFRUGLQJWR)ORRG)DFWRUDWRROWKDWLGHQWLILHVD SURSHUW\¶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x ,QFUHDVHGDQQXDO IULWWLQJWRUHGXFHELUG VXUURXQGLQJDUHD 3URMHFW'HVLJQ WHPSHUDWXUHV VWULNHVDQGSURYLGHKHDW LQFOXGLQJFKDQJLQJ x ,QFUHDVHGIUHH]H UHGXFWLRQ FOLPDWH]RQHV WKDZF\FOHV x %XLOGLQJVKHOOVFRXOGEH WHPSHUDWXUHWUHQGVDQG x 0HGLXPXUEDQKHDW HQHUJ\HIILFLHQW SRWHQWLDOIRUH[WHQGHG LVODQGHIIHFW x 3URSRVHGFOLPDWHVPDUW KHDWZDYHV WUHHSODQWLQJVDQG ODQGVFDSLQJZLOOUHGXFH UXQRIIDQGPLWLJDWHXUEDQ KHDWLVODQGHIIHFW $YDLODEOHDWKWWSVULVNIDFWRUFRPFLW\URFKHVWHUPQ $XJXVW 7KHODQGXVHZLOOQRW EHFKDQJLQJVLQFHWKH FXUUHQWDQGSURSRVHG x ,QFUHDVHGDQQXDO XVHZLOOERWKEHSXEOLF SUHFLSLWDWLRQDQGPRUH x KHDOWKIDFLOLWLHV 'HVLJQRIWKHVLWHDQG IUHTXHQWKHDY\UDLQIDOO KRZHYHUWKHIRRWSULQW VWRUPZDWHUPDQDJHPHQW HYHQWV DPRXQWRILPSHUYLRXV IDFLOLWLHVZLOOPHHW&LW\ VXUIDFHDQGLPSDFWRQ VWRUPZDWHUUHTXLUHPHQWV x /DQG8VH 7KHVWXG\DUHDLVQRW ZLQGGULYHQUDLQZLOOEH ZKLFKDUHGHVLJQHGWR ZLWKLQIORRGSODLQDUHDV FKDQJLQJ7KHORFDWLRQ UHGXFHWKHULVNRIIORRGLQJLQ DQGWKHUHIRUHQRULVNV RIWKHSURMHFWLVQRW WKH$8$5VWXG\DUHD DUHLGHQWLILHGZLWK ZLWKLQIORRGSODLQDUHDV LQFUHDVHGIORRGLQJ DQGWKHUHIRUHQRULVNV HYHQWV DUHLGHQWLILHGZLWK LQFUHDVHGIORRGLQJ HYHQWV 'XHWRJHQHUDOFOLPDWHWUHQGV x 'HYHORSHUVZLOOFRQVLGHU DFURVVWKHVWDWHZDWHU XVLQJQDWLYHSODQWVDQG SHUHQQLDOVIRUODQGVFDSLQJ UHVRXUFHVLQWKHJHQHUDO DQGVWRUPZDWHUIHDWXUHVZLOO SURMHFWDUHDPD\EHFRPH DEVRUEZDWHUDQGUHGXFH ZDUPHUPRUHSROOXWHGDQG WKHZDWHUGHPDQGIRU FKDQJHLQYROXPHGXHWR LUULJDWLRQ &XUUHQW0LQQHVRWDLQFUHDVHGWHPSHUDWXUHVDQG x 6WRUPZDWHU%03VZLOOEH FOLPDWHWUHQGVDQGUXQRII7KHUHPD\EHPRUH GHVLJQHGWRZHDWKHUD DQWLFLSDWHGFOLPDWHHYDSRUDWLRQDQGZDWHU :DWHU \HDUVWRUPHYHQWLQ FKDQJHLQWKHJHQHUDODYDLODEOHZKHQLWUDLQVOHDGLQJ 5HVRXUFHV DFFRUGDQFHZLWK&LW\ ORFDWLRQRIWKHSURMHFWWRDQLQFUHDVHLQWKHIORRG :DWHUVKHGUHTXLUHPHQWVDV PD\LQIOXHQFHZDWHUSRWHQWLDO,WLVSURMHFWHGWKDW WKHSURSHUW\LVGHYHORSHG UHVRXUFHVWKHUHZLOOEHPRUHVHYHUH x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rial]]6WDWH [[1325,437,1337,485][10][B,I,][Arial]] ±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rial]]5HJLRQDO&RXQW\/RFDO [[1511,324,1523,372][10][B,I,][Arial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¶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rial]]'RZQWRZQ)ULQJH [[935,1642,947,1689][10][,,][Arial]] [[947,1642,2243,1689][10][,,][Arial]]ODQGXVHGHVLJQDWLRQDOORZVIRUDPL[RIXVHVWKDWSURYLGHVDWUDQV LWLRQ EHWZHHQPRUHLQWHQVLYHEXVLQHVVRULHQWHGODQGXVHVDQGOHVVLQWHQVLYHUHVLGHQWLDOODQG XVHV7KHW\SHVRIGHYHORSPHQWDOORZHGZLWKLQWKLVODQGXVHDUHDLQFOXGHVPHGLXPWRKLJK GHQVLW\UHVLGHQWLDOORGJLQJSURIHVVLRQDORIILFHVUHVWDXUDQWVDQGLQVWLWXWLRQDOXVHV7KLVODQG XVHRYHUOD\VWKHQRUWKHDVWSRUWLRQRIWKH$8$5VWXG\DUHDERUGHULQJRQHLWKHUVLGHRID 0HGLFDO&DPSXVODQGXVH 7KH[[612,1977,1338,2025][10][,I,][Arial]]0L[HG8VH7UDQVLW6XSSRUWLYH&RUULGRUV [[1338,1977,1350,2024][10][,,][Arial]] [[1350,1977,1923,2024][10][,,][Arial]]DOORZIRUGHYHORSPHQWRIWUDQVLW [[1925,1977,1939,2024][10][,,][Arial]] [[1938,1977,2140,2024][10][,,][Arial]]VXSSRUWLYH GHQVLWLHVRIFRPPHUFLDOUHVLGHQWLDODQGHPSOR\PHQWXVHV7KLVGHVLJQDWLRQLVDSSOLHGDORQJ 5RFKHVWHU¶VEXVLHVWZLGHVWDQGPRVWSURPLQHQWVWUHHWVWKDWVHUYHWKHFLW\¶VPDMRU GHYHORSPHQWGHVWLQDWLRQV:LWKLQWKH$8$5VWXG\DUHDWKLVODQGXVHGHVLJQDWLRQLVSUHVHQW DORQJH[LVWLQJVWUHHWVLQWKHVRXWKZHVWFRUQHURIWKHVWXG\DUHD 7KH[[612,2263,1180,2311][10][,I,][Arial]]7UDGLWLRQDO&RUH1HLJKERUKRRG [[1178,2263,1190,2310][10][,,][Arial]] [[1190,2263,2191,2310][10][,,][Arial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±± 6PDOOHUDUHDVRI0;')50L[HGXVH'RZQWRZQ)ULQJH0;712'0L[HG8VH7UDQVLW 2ULHQWHG1RGH5+LJK'HQVLW\5HVLGHQWLDODQG5;/RZ'HQVLW\5HVLGHQWLDO,QILOODUH )LJXUH DOVRSUHVHQW 7KLV]RQLQJLVLQWHQGHGWRSURYLGHIRUWKHKLJKHVWLQWHQVLW\RI GHYHORSPHQWZLWKLQWKHFLW\7KH0HGLFDOVXEGLVWULFW 0;'0(' LVLQWHQGHGIRUPHGLFDO SXEOLFXVHVZLWKLQWKHDUHDRI6W0DU\¶V+RVSLWDO IDFLOLWLHVSXEOLFDQGVHPLDQGPHGLFDO FDPSXV7KH'RZQWRZQ)ULQJHVXEGLVWULFWLVLQWHQGHGWRLQFOXGHGHYHORSPHQWWKDWLV QHFHVVDU\WRVXSSRUWRUHQKDQFHWKH&HQWUDO%XVLQHVVVXEGLVWULFW 7KLVDUHDRI5RFKHVWHULVZLWKLQWKH0D\R&OLQLF¶V0HGLFDO,QVWLWXWLRQDO&DPSXV6SHFLDO 'LVWULFW$\HDUSODQIRUWKLV6SHFLDO'LVWULFWRXWOLQHVWKHYLVLRQIRUWKLVDUHDDQGZDV UHFHQWO\XSGDWHG 6HSWHPEHU 7KHUHLVQR)(0$PDSSHGIORRGSODLQZLWKLQWKHVWXG\DUHD ),503DQHOV $XJXVW 3DJH )LQDO$8$5 $XJXVW &RPSDWLELOLW\ZLWK3ODQV 7KH&LW\RI5RFKHVWHU¶V FRPSUHKHQVLYHSODQFRPSOLHVZLWKWKHUHTXLUHPHQWVVHWIRUWKLQ 0LQQHVRWD5XOHVSDUWVXESDUW7KHSURSRVHGUHGHYHORSPHQWZLWKLQWKHVWXG\DUHD LVFRPSDWLEOHZLWKWKHH[LVWLQJDQGSODQQHGODQGXVHVIRUWKHDUHDDQGLVDOVRFRPSDWLEOHZLWKWKH 0D\R&OLQLF¶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x *RRGVXUIDFHGUDLQDJHZLOOEHPDLQWDLQHGWKURXJKRXWFRQVWUXFWLRQVRWKDWWKHVLWHLVQRW YXOQHUDEOHWRSRQGLQJGXULQJRUDIWHUDUDLQIDOO,IZDWHUHQWHUVH[FDYDWLRQVLWVKRXOGEH SURPSWO\UHPRYHGSULRUWRIXUWKHUFRQVWUXFWLRQDFWLYLWLHV8QGHUQRFLUFXPVWDQFHVVKRXOG ILOORUFRQFUHWHEHSODFHGLQWRVWDQGLQJZDWHU x 7RPDLQWDLQFRQVWUXFWLRQVDIHW\DOOH[FDYDWLRQVZLOOFRPSO\ZLWKWKHUHTXLUHPHQWVRI 26+$&)53DUW6XESDUW3³([FDYDWLRQVDQG7UHQFKHV´ x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¶%ULHQ2SHQ/RRS*HRWKHUPDO6\VWHP)HDVLELOLW\6WXG\ WKUHH538PXQLFLSDOVXSSO\ZHOOVDUHORFDWHGZLWKLQIWRIWKHVWXG\DUHD7KHVHZHOOV LQFOXGH538ZHOOVDQG x :HOOLVORFDWHGaIWVRXWKRIWKHVLWHDQGLVFRPSOHWHGLQWKH3UDLULH'X &KLHQDQG-RUGDQ$TXLIHUV x :HOOLVORFDWHGaIWQRUWKHDVWRIWKHVLWHDQGLVFRPSOHWHGLQWKH-RUGDQ 7XQQHO&LW\DQG:RQHZRF$TXLIHUV x :HOOLVORFDWHGaIWZHVWRIWKHVLWHDQGLVFRPSOHWHGLQWKH-RUGDQ7XQQHO &LW\:RQHZRFDQG0W6LPRQ$TXLIHUV 'HWDLOVRIVHOHFWHGSULYDWHZHOOVORFDWHGZLWKLQ¶RIWKH VWXG\DUHDDUHLQFOXGHGLQWKH $SSHQGL[$ WDEOHEHORZDQGLQ 13'(6&RQVWUXFWLRQ6WRUPZDWHU3HUPLW 3DJH )LQDO$8$5 $XJXVW )URPWKH6DODV2¶%ULHQ2SHQ/RRS*HRWKHUPDO6\VWHP )HDVLELOLW\6WXG\ ³2QHZHOO G\DUHDLVGHSLFWHGZLWKLQ7KH V\VWHPFRQYH\VIORZYLDJUDYLW\VHZHUOLQHVWRWKH:DWHU5HFODPDWLRQ3ODQW :53 ZKLFK GLVFKDUJHVWUHDWHGHIIOXHQWWRWKH6RXWK)RUNRIWKH=XPEUR5LYHU$VRI-XQHWKH 5RFKHVWHU:53KDVDUDWHGGU\ZHDWKHUIORZFDSDFLW\RIPLOOLRQJDOORQVSHUGD\ PJG DQGDQDYHUDJHZHWZHDWKHUIORZFDSDFLW\RIPLOOLRQJDOORQVRIZDVWHZDWHUSHUGD\ FXUUHQWO\WUHDWLQJDSSUR[LPDWHO\PLOOLRQJDOORQVRIZDVWHZDWHUSHUGD\RQDQDQQXDO DYHUDJHEDVLV 3DJH )LQDO$8$5 $XJXVW 3DJH )LQDO$8$5 $XJXVW 7KHHVWLPDWHGZDVWHZDWHUIORZVIRUWKHSURSRVHGEXLOGLQJVZLWKLQWKHGHYHORSPHQWDUHDV IROORZV x %XLOGLQJ *3' *3'Z $XJXVW 7KHSURSRVHG%XLOGLQJKDVDYDLODEOHDGMDFHQWLQIUDVWUXFWXUHIRUFRQQHFWLRQDVGLVFXVVHG ZLWKWKH&LW\RI5RFKHVWHU7KHHVWLPDWHG´VDQLWDU\VHZHUVHUYLFHFDQFRQQHFWWR WKH H[LVWLQJ´SXEOLFVDQLWDU\VHZHUPDLQORFDWHGZLWKLQ:HVW&HQWHU6WUHHW 7KHSURSRVHG383([SDQVLRQEXLOGLQJKDVDYDLODEOHDGMDFHQWLQIUDVWUXFWXUHIRUFRQQHFWLRQDV GLVFXVVHGZLWKWKH&LW\RI5RFKHVWHU7KHHVWLPDWHG´VDQLWDU\VHZHUDQGWKHHVWLPDWHG´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rial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x XVLQJORZIORZWRLOHWVXULQDOVDQGVKRZHUFRPSRQHQWV x UHFLUFXODWLRQSXPSVWKDWDOORZIRUKRWZDWHUWREHVHUYHGTXLFNO\ x XWLOL]HVPDOOLQVWDQWDQHRXVZDWHUKHDWHUVDWIL[WXUHVWKDWDUHDJUHDWHUGLVWDQFH IURPWKHFHQWUDOZDWHUKHDWHU 7KHSURSRVHG%XLOGLQJKDVDYDLODEOHDGMDFHQWLQIUDVWUXFWXUHIRUFRQQHFWLRQDV ´ GLVFXVVHGZLWK538:757KHHVWLPDWHGWZRZDWHUVHUYLFHVFDQFRQQHFWWRWKH ´SXEOLF H[LVWLQJZDWHUPDLQVORFDWHGZLWKLQ:HVW&HQWHU6WUHHWDQG6HYHQWK$YHQXH 1: )RUWKHSURSRVHG%XLOGLQJVDQGVRPHH[LVWLQJLQIUDVWUXFWXUHZLOOQHHGWREHXSJUDGHG WRDFFRPPRGDWHWKHSURSRVHGZDWHUGHPDQGV/RRSLQJRIWKHH[LVWLQJV\VWHPWR PDLQWDLQDGHTXDWHSUHVVXUHVZLOOEHUHTXLUHG3URSRVHGGHVLJQVZLOOFRQWLQXHWREH HYDOXDWHGZLWKWKH538:75 7KHSURSRVHG%XLOGLQJLVQRWH[SHFWHGWRUHTXLUHZDWHUVHUYLFH 7KHSURSRVHG383([SDQVLRQEXLOGLQJKDVDYDLODEOHDGMDFHQWLQIUDVWUXFWXUHIRU ´ZDWHUVHUYLFHV FRQQHFWLRQDVGLVFXVVHGZLWKWKH538:757KHHVWLPDWHGWZRFDQ ´ ´ FRQQHFWWRWKHH[LVWLQJSXEOLFZDWHUPDLQVORFDWHGLQ7KLUG$YHQXH1:DQG7KLUG 6WUHHW1:0LWLJDWLRQPHDVXUHVEHLQJFRQVLGHUHGLQWKHGHVLJQRIWKLVIDFLOLW\WRUHGXFH ZDWHUGHPDQGLQFOXGHV x XVLQJWZRVWDJHUHYHUVHRVPRVLV 52 VNLGVWRLQFUHDVHWKHTXDOLW\RISHUPHDWH YVFRQFHQWUDWHFRPSDUHGWRVLQJOHVWDJH52VNLGV x XVLQJYDULRXVZDWHUWUHDWPHQWHTXLSPHQW HJFRQGHQVDWHSROLVKHUVVRIWHQHUV FDUERQILOWHUVFDUWULGJHILOWHUV52VNLGVDQGGHJDVVLILHUVNLGV WRLPSURYHERLOHU ZDWHUTXDOLW\EH\RQGLQGXVWU\VWDQGDUGZKLFKZLOOUHGXFHERLOHUEORZGRZQ UHTXLUHG x SODFLQJVRIWHQHUVXSVWUHDPRIWKH52WRUHGXFHEDFNZDVK x GLUHFWLQJ52VNLGUHMHFWWRDUHFODLPZDWHUWDQNZKHUHLWFDQEHGLOXWHGZLWKFLW\ ZDWHUWRDFFHSWDEOHFRQGXFWLYLW\DQGXWLOL]HGIRU R EORZGRZQGLVFKDUJHWHPSHULQJZDWHU R FRROLQJWRZHUPDNHXSZDWHU x XVLQJFORVHGORRSFRROLQJIRUSURFHVVHTXLSPHQWLQVWHDGRIRSHQORRSDQG x FRROLQJWRZHUFKHPLFDOWUHDWPHQWWRPDLQWDLQDKLJKHU&R&UHGXFLQJEORZGRZQ DQGPDNHXSZDWHUXVDJH *URXQGZDWHU *HRWHFKQLFDOVWXGLHVQRWHGSHUFKHGJURXQGZDWHURQWRSRIWKHGRORVWRQHEHGURFNZKLFK FDQDIIHFWH[FDYDWLRQVDQGFRQVWUXFWLRQ&RQVWUXFWLRQGHZDWHULQJLIQHHGHGZLOOUHTXLUH DSHUPLWIURPWKH'15 0D\RLVSURSRVLQJWRXWLOL]HDQRSHQORRSJHRWKHUPDOV\VWHP*HRWKHUPDOV\VWHPVXVH WKHHDUWK¶VKHDWWRFLUFXODWHJURXQGZDWHUWRKHDWRUFRRODEXLOGLQJ¶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x DTXLIHUFKDUDFWHULVWLFV LHWUDQVPLVVLYLW\JURXQGZDWHUIORZGLUHFWLRQ JURXQGZDWHUWHPSHUDWXUHHWF x SRWHQWLDO]RQHRILQIOXHQFHXQGHURSHUDWLQJFRQGLWLRQV LHVLPXOWDQHRXVSXPSLQJ DQGLQMHFWLRQWRWKHVDPHDTXLIHU x WKHUPDOPRGHOOLQJDQG x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rial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x ([LVWLQJLQIUDVWUXFWXUHZLOOQHHGWREHXSJUDGHGWRDFFRPPRGDWHWKHSURSRVHGZDVWHZDWHU IORZV x ([LVWLQJXSVWUHDPZDVWHZDWHUIORZVRIWKHSURSRVHG%XLOGLQJVDQGZLOOQHHGWREH UHURXWHG 6WRUPZDWHU x :DWHUTXDOLW\WUHDWPHQWLVUHTXLUHGIRUWKHHQWLUHVLWHSHU&LW\UHTXLUHPHQWV x 3URYLGHZDWHUTXDOLW\WUHDWPHQWHTXLYDOHQWWRLQFKRYHUDOOQHZDQGUHFRQVWUXFWHG LPSHUYLRXVDUHDV x 2EWDLQD1DWLRQDO3ROOXWLRQ'LVFKDUJH(OLPLQDWLRQ6\VWHP 13'(6 FRQVWUXFWLRQVWRUPZDWHU SHUPLWIRUSURMHFWVWKDWH[FHHGDFUHRIGLVWXUEDQFH x $GKHUHWR13'(6FRQVWUXFWLRQVWRUPZDWHUSHUPLWUHTXLUHPHQWVDQGLPSOHPHQWFRQVWUXFWLRQ EHVWPDQDJHPHQWSUDFWLFHVVXFKDVVLOWIHQFHDQGHURVLRQFRQWUROEODQNHW x ,QFRUSRUDWHJUHHQLQIUDVWUXFWXUHRSWLRQVLQWRGHVLJQZKHUHIHDVLEOH :DWHU6XSSO\ x 6RPHH[LVWLQJLQIUDVWUXFWXUHZLOOOLNHO\QHHGWREHXSJUDGHGWRDFFRPPRGDWHWKHSURSRVHG ZDWHUGHPDQGV R /RRSLQJRIWKHH[LVWLQJV\VWHPWRPDLQWDLQDGHTXDWHSUHVVXUHVZLOOEHUHTXLUHG x 0LWLJDWLRQPHDVXUHVEHLQJFRQVLGHUHGWRUHGXFHWKHZDWHUVXSSO\UHTXLUHPHQWVRIWKH PHGLFDOLQVWLWXWLRQDOIDFLOLWLHVLQWKHVWXG\DUHDLQFOXGH R XVLQJORZIORZWRLOHWVXULQDOVDQGVKRZHUFRPSRQHQWV R UHFLUFXODWLRQSXPSVWKDWDOORZIRUKRWZDWHUWREHVHUYHGTXLFNO\ R XWLOL]HVPDOOLQVWDQWDQHRXVZDWHUKHDWHUVDWIL[WXUHVWKDWDUHDJUHDWHUGLVWDQFHIURP WKHFHQWUDOZDWHUKHDWHU x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x 3URYLGHDGGLWLRQDOFRQVWUXFWLRQUHODWHG%03VIRXQGLQLWHPVDQGRIWKH13'(6 SHUPLW *URXQGZDWHU x &RQVWUXFWLRQGHZDWHULQJLIUHTXLUHGZLOOUHTXLUHDSHUPLWIURPWKH'15 x 6XEPLWD3UHOLPLQDU\:HOO&RQVWUXFWLRQ$VVHVVPHQWWRWKH'15 x $EDQGRQDQGVHDOXQXVHGZHOOVXVLQJDOLFHQVHGFRQWUDFWRU x 2EWDLQD'HSDUWPHQWRI+HDOWKSHUPLWIRULQVWDOODWLRQRIWKHJHRWKHUPDOV\VWHP x 2EWDLQD:DWHU$SSURSULDWLRQSHUPLWIURPWKH'15WRRSHUDWHWKHJHRWKHUPDOV\VWHP x 7KHFXUUHQWWHVWGULOOLQJSURJUDPUHVXOWVZLOOEHHYDOXDWHGIRUDGGLWLRQDOSRWHQWLDOHIIHFWVDQG FRRUGLQDWHGZLWKWKH'15 x 2SHQORRSV\VWHPZLOOEHFRQWLQXRXVO\PRQLWRUHGDQGURXWLQHO\PDLQWDLQHGWRSUHYHQWV\VWHP IDLOXUHV 3DJH )LQDO$8$5 $XJXVW &RQWDPLQDWLRQ+D]DUGRXV0DWHULDOV:DVWHV 3UH3URMHFW6LWH&RQGLWLRQV'HVFULEHH[LVWLQJFRQWDPLQDWLRQRUSRWHQWLDOHQYLURQPHQWDO KD]DUGVRQRULQFORVHSUR[LPLW\WRWKHSURMHFWVLWHVXFKDVVRLORUJURXQGZDWHU FRQWDPLQDWLRQDEDQGRQHGGXPSVFORVHGODQGILOOVH[LVWLQJRUDEDQGRQHGVWRUDJHWDQNV DQGKD]DUGRXVOLTXLGRUJDVSLSHOLQHV'LVFXVVDQ\SRWHQWLDOHQYLURQPHQWDOHIIHFWVIURP SUHSURMHFWVLWHFRQGLWLRQVWKDWZRXOGEHFDXVHGRUH[DFHUEDWHGE\SURMHFWFRQVWUXFWLRQ DQGRSHUDWLRQ,GHQWLI\PHDVXUHVWRDYRLGPLQLPL]HRUPLWLJDWHDGYHUVHHIIHFWVIURP H[LVWLQJFRQWDPLQDWLRQRUSRWHQWLDOHQYLURQPHQWDOKD]DUGV,QFOXGHGHYHORSPHQWRID &RQWLQJHQF\3ODQRU5HVSRQVH$FWLRQ3ODQ $Q(QYLURQPHQWDO&RQWDPLQDWLRQ5HYLHZ 5HYLHZ ZDVFRPSOHWHGIRUWKHVWXG\DUHDDQGWKRVH ILQGLQJVZHUHUHSRUWHGLQD-DQXDU\0HPRUDQGXP7KH5HYLHZFRQVLVWHGRIFRPSOHWLQJ UHJXODWRU\03&$ILOHUHYLHZVDVVRFLDWHGZLWKVLWHVWKDWPD\KDYHGRFXPHQWHGUHVLGXDO FRQWDPLQDWLRQLQVRLOJURXQGZDWHUDQGRUVRLOYDSRULQWKHDUHDVRISODQQHGFRQVWUXFWLRQ 5HVLGXDOVRLODQGJURXQGZDWHUFRQWDPLQDWLRQLVGRFXPHQWHGDWWKHH[LVWLQJ383IDFLOLW\ 03&$ UHJXODWRU\VLWHV3%9393DQG6$ DQGH[LVWLQJ2]PXQ%XLOGLQJ 03&$UHJXODWRU\VLWHV/6XH1RUWKZHVWWKHXSSHUWZRIHHWRIVRLOZLOOOLNHO\QHHGWREH PDQDJHGDVUHJXODWHGILOOEDVHGRQWKHHOHYDWHGFRQWDPLQDQWFRQFHQWUDWLRQV,IHQFRXQWHUHG GXULQJFRQVWUXFWLRQJURXQGZDWHUPD\DOVRUHTXLUHVSHFLDOPDQDJHPHQWGXHWRHOHYDWHG'52 7KHH[LVWLQJ2]PXQ%XLOGLQJSURSHUW\LVDVVRFLDWHGZLWKWZRFORVHGSHWUROHXPOHDNVSULRUWR 0D\RWDNLQJRZQHUVKLSRIWKHSURSHUW\2QHSHWUROHXPUHOHDVHGLVFRYHUHGLQUHVXOWHGLQ VRLODQGJURXQGZDWHUFRQWDPLQDWLRQIURPOHDNLQJJDVROLQHDQGGLHVHOXQGHUJURXQGVWRUDJHWDQNV 867V 7KHOHDNLQJ867VZHUHORFDWHGDWWKHQRUWKHUQSRUWLRQRIWKHVLWHDWWKHFXUUHQW DERYHJURXQGVWRUDJHWDQN $67 DQGGXPSVWHUVWRUDJHDUHDLPPHGLDWHO\VRXWKRIVW6WUHHW 6RXWKZHVW%DVHGRQWKHDYDLODEOHKLVWRULFDOGDWDSHWUROHXPFRQWDPLQDWHGJURXQGZDWHU UHTXLULQJVSHFLDOPDQDJHPHQWPD\EHHQFRXQWHUHGLIIXWXUHH[FDYDWLRQDFWLYLWLHVDUHFRPSOHWHG DWGHSWKVEH\RQGVRLOYDSRUPDQDJHPHQWSODQVPHWKRGVWKDWZLOOEHLPSOHPHQWHGLQWKHHYHQW FRQWDPLQDWLRQLVHQFRXQWHUHGGXULQJFRQVWUXFWLRQ7KH5$3ZLOOEHRYHUVHHQE\DQHQYLURQPHQWDO FRQVXOWDQWWRHQVXUHWKHPDQDJHPHQWRIFRQWDPLQDWHGPDWHULDOVLVFRPSOHWHGLQDFFRUGDQFHZLWK 03&$DQG&LW\&RXQW\UHJXODWLRQV3ULRUWRFRQVWUXFWLRQVRLOVDPSOHVVKRXOGEHFROOHFWHGDW DUHDVZLWKVXVSHFWHGRUGRFXPHQWHGFRQWDPLQDWLRQIRUZDVWHFKDUDFWHUL]DWLRQDQGRUSRWHQWLDO UHXVHSXUSRVHV6RLOPD\EHHOLJLEOHIRURQVLWHDQGRURIIVLWHUHXVHGHSHQGLQJRQWKHOHYHOVW\SHV 3DJH $XJXVW RIFRQWDPLQDQWVLGHQWLILHGWKLFNQHVVRISURSRVHGFOHDQFRYHUSODFHPHQWGHSWKDQGRUSURSRVHG ODQGXVH7KHH[LVWLQJDTXLIHUWHVWLQJIRUWKHSURSRVHGJHRWKHUPDOV\VWHPZLOOHYDOXDWHWKH]RQH RILQIOXHQFHDQGIXUWKHULQIRUPZKHWKHUDQ\SRWHQWLDOO\FRQWDPLQDWHGDUHDVQHHGIXUWKHUVWXG\ SULRUWRFRQVWUXFWLRQRIWKHV\VWHP&RQVWUXFWLRQRIWKHJHRWKHUPDOV\VWHPZLOOEHFRPSOHWHGLQ DFFRUGDQFHZLWK016WDWXWHVZKLFKLQFOXGHVDQLQQHUDQGRXWHUFDVLQJZLWKIXOOJURXWLQJ 7KHSRWHQWLDOH[LVWVIRUSUHYLRXVO\XQGRFXPHQWHGFRQWDPLQDWLRQWREHSUHVHQWDWRWKHU$8$5 VWXG\DUHDORFDWLRQVDVVRFLDWHGZLWKWKHDUHD¶VKLVWRULFDOFRPPHUFLDODQGLQGXVWULDOSURSHUW\ XVDJH7KHUHIRUHWKH5$3ZLOOLQFOXGHD&RQVWUXFWLRQ&RQWLQJHQF\3ODQ &&3 GHWDLOLQJ SURFHGXUHVDQGSURWRFROVWRPDQDJHSUHYLRXVO\XQLGHQWLILHGHQYLURQPHQWDOFRQGLWLRQVWKDWDUH HQFRXQWHUHGGXULQJFRQVWUXFWLRQDFWLYLWLHV7KHVHFRQGLWLRQVPD\LQFOXGHEXWDUHQRWOLPLWHGWR HOHYDWHGVRLOYDSRUUHDGLQJVDEDQGRQHG867VEXULHGGUXPVWUDQVIRUPHUVGHEULVDVKDQG DVEHVWRVFRQWDLQLQJZDVWHPDWHULDO 3URMHFW5HODWHG*HQHUDWLRQ6WRUDJHRI6ROLG:DVWHV'HVFULEHVROLGZDVWHV JHQHUDWHGVWRUHGGXULQJFRQVWUXFWLRQDQGRURSHUDWLRQRIWKHSURMHFW,QGLFDWHPHWKRGRI GLVSRVDO'LVFXVVSRWHQWLDOHQYLURQPHQWDOHIIHFWVIURPVROLGZDVWHKDQGOLQJVWRUDJHDQG GLVSRVDO,GHQWLI\PHDVXUHVWRDYRLGPLQLPL]HRUPLWLJDWHDGYHUVHHIIHFWVIURPWKH JHQHUDWLRQVWRUDJHRIVROLGZDVWHLQFOXGLQJVRXUFHUHGXFWLRQDQGUHF\FOLQJ [[529,1213,541,1261][10][,I,][Arial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rial]] &KHPLFDOVKD]DUGRXVPDWHULDOVXVHGDQGRUVWRUHGGXULQJFRQVWUXFWLRQPD\LQFOXGHSHWUROHXP SURGXFWV HJJDVROLQHGLHVHOHTXLSPHQWYHKLFOHOXEULFDQWVHWF DGKHVLYHVV\QWKHWLFDQG QDWXUDOUHVLQVVROYHQWVSRO\PHUERQGLQJDJHQWVDQGVXUIDFHVHDOHUV7HPSRUDU\IXHOLQJWDQNV IRUFRQVWUXFWLRQHTXLSPHQWZLOOOLNHO\EHVWDJHGDWPXOWLSOHORFDWLRQV7KHQXPEHUORFDWLRQDQG VL]HRISODQQHGWHPSRUDU\WDQNVIRUFRQVWUXFWLRQDUHXQNQRZQDWWKLVWLPHKRZHYHUWKHORFDWLRQ DQGXVHRIWHPSRUDU\VWRUDJHWDQNVZLOOFRPSO\ZLWKVWDWHDQGORFDOUXOHVDQGUHJXODWLRQV $FFLGHQWDOVSLOOVRUUHOHDVHVRISHWUROHXPKD]DUGRXVPDWHULDOVGXULQJFRQVWUXFWLRQZLOOEH SURPSWO\FRQWDLQHGUHSRUWHGWRWKH0LQQHVRWD'XW\2IILFHUDVDSSOLFDEOHDQGUHFRYHUHG LHWKH VSLOOHGPDWHULDOZLOOEHFOHDQHGXSDQGFRUUHVSRQGLQJZDVWHVZLOOEHGLVSRVHGDSSURSULDWHO\ 2OPVWHG&RXQW\6ROLG:DVWH0DQDJHPHQW3ODQ 3DJH )LQDO$8$5 $XJXVW 'XULQJRSHUDWLRQWKHIRXUSURSRVHG0HGLFDO,QVWLWXWLRQDOEXLOGLQJVZLOOOLNHO\LQFOXGHWKHXVH DQGRUVWRUDJHRIFOHDQLQJDQGGLVLQIHFWLQJDJHQWVVWHULODQWVODWH[DQGFRPPRQODERUDWRU\ FKHPLFDOVDQGUHDJHQWV HJDFHWRQHK\GURFKORULFDFLGEHQ]\OFKORULGH 7KHSURSRVHGHOHFWULF JHQHUDWLQJIDFLOLW\ZLOOOLNHO\LQFOXGHWKHVWRUDJHDQGXVHRIFKHPLFDOVKD]DUGRXVPDWHULDOV QHFHVVDU\IRUSURGXFLQJFKLOOHGZDWHUVWHDPQRUPDOSRZHUDQGHVVHQWLDOSRZHU'LHVHOIXHO $67VPD\EHQHHGHGIRUHPHUJHQF\JHQHUDWRUVDWWKHSURSRVHG0HGLFDO,QVWLWXWLRQDOEXLOGLQJV DQG(OHFWULF*HQHUDWLQJ)DFLOLW\7KHVSHFLILFORFDWLRQRIWKHVHWDQNVZLOOEHGHWHUPLQHGDVGHVLJQ SURJUHVVHVDQGWKHORFDWLRQDQGXVHRISURSRVHGVWRUDJHWDQNVZLOOFRPSO\ZLWKVWDWHDQGORFDO UXOHVDQGUHJXODWLRQV:KLOHLQRSHUDWLRQWKHSURSRVHGQHZIDFLOLWLHVZLOOPDLQWDLQKD]DUGRXV PDWHULDOVSLOOSUHYHQWLRQSODQVDQGRXWOLQHWKHVWDQGDUGPHWKRGVWRIROORZLQWKHHYHQWDVSLOORU UHOHDVHRFFXUV 3URMHFW5HODWHG*HQHUDWLRQ6WRUDJHRI+D]DUGRXV:DVWHV'HVFULEHKD]DUGRXVZDVWHV JHQHUDWHGVWRUHGGXULQJFRQVWUXFWLRQDQGRURSHUDWLRQRIWKHSURMHFW,QGLFDWHPHWKRGRI GLVSRVDO'LVFXVVSRWHQWLDOHQYLURQPHQWDOHIIHFWVIURPKD]DUGRXVZDVWHKDQGOLQJ VWRUDJHDQGGLVSRVDO,GHQWLI\PHDVXUHVWRDYRLGPLQLPL]HRUPLWLJDWHDGYHUVHHIIHFWV IURPWKHJHQHUDWLRQVWRUDJHRIKD]DUGRXVZDVWHVLQFOXGLQJVRXUFHUHGXFWLRQDQG UHF\FOLQJ [[529,1213,541,1261][10][,I,][Arial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x $5HVSRQVH$FWLRQ3ODQ 5$3 VKRXOGEHGHYHORSHGSULRUWRFRQVWUXFWLRQ x '52LPSDFWHGVRLODQGJURXQGZDWHUPD\UHTXLUHVSHFLDOPDQDJHPHQW5HIHUWR-DQXDU\ (QYLURQPHQWDO&RQWDPLQDWLRQ5HYLHZ0HPRUDQGXP x $&RQVWUXFWLRQ&RQWLQJHQF\3ODQ &&3 GHWDLOLQJSURFHGXUHVDQGSURWRFROVWRPDQDJH SUHYLRXVO\XQLGHQWLILHGHQYLURQPHQWDOFRQGLWLRQVWKDWDUHHQFRXQWHUHGGXULQJFRQVWUXFWLRQ DFWLYLWLHVVKRXOGEHGHYHORSHGSULRUWRFRQVWUXFWLRQ x &RQVWUXFWLRQUHODWHGZDVWHZLOOEHUHF\FOHGRUGLVSRVHGRIDWDSSURYHGIDFLOLWLHVDV DSSURSULDWH x 6ROLGZDVWHJHQHUDWLRQDQGGLVSRVDOGXULQJFRQVWUXFWLRQDQGRSHUDWLRQZLOOFRPSO\ZLWK DSSOLFDEOHODZVUXOHVDQGRUGLQDQFHVUHODWHGWRWKHPDQDJHPHQWRIVROLGZDVWHV x 5HF\FOLQJZLOOEHFRPSOHWHGLQDFFRUGDQFHZLWKWKH5HF\FOLQJ/DZ 0LQQHVRWD 6WDWXWHV&KDSWHU$LQFOXGLQJEXWQRWOLPLWHGWR6HFWLRQV$DQG$ x :KLOHLQRSHUDWLRQWKHSURSRVHGQHZIDFLOLWLHVZLOOPDLQWDLQKD]DUGRXVPDWHULDOVSLOO SUHYHQWLRQSODQVDQGRXWOLQHWKHVWDQGDUGPHWKRGVWRIROORZLQWKHHYHQWDVSLOORUUHOHDVH RFFXUV x %RWKGXULQJFRQVWUXFWLRQDQGRSHUDWLRQWKHSURSRVHGIDFLOLWLHVZLOOFRPSO\ZLWKWKH +D]DUGRXV:DVWH0DQDJHPHQW +:0 3URJUDPRXWOLQHGLQWKH2OPVWHG &RXQW\6ROLG:DVWH0DQDJHPHQW3ODQ x $Q\KD]DUGRXVZDVWHJHQHUDWHGGXULQJFRQVWUXFWLRQZLOOEHKDQGOHGDQGGLVSRVHGRILQ DFFRUGDQFHZLWKVWDWHDQGORFDOUHJXODWLRQV x ,ISUHYLRXVO\LGHQWLILHGDVEHVWRVFRQWDLQLQJPDWHULDOZLOOEHGLVWXUEHGGXULQJEXLOGLQJ UHQRYDWLRQDQGRUGHPROLWLRQDFWLYLWLHVWKH03&$DQG0LQQHVRWD'HSDUWPHQWRI+HDOWK 0'+ ZLOOEHQRWLILHGDQGWKH$&0ZLOOEHDEDWHGE\DQ0'+FHUWLILHGDVEHVWRV FRQWUDFWRU x 8QLYHUVDOZDVWHVXFKDVIOXRUHVFHQWEXOEVEDOODVWVPHUFXU\WKHUPRVWDWVDQGHOHFWURQLF ZDVWHZLOOEHGLVSRVHGDQGRUUHF\FOHGWRWKHH[WHQWIHDVLEOHSULRUWRDQ\EXLOGLQJ GHPROLWLRQRUUHQRYDWLRQ 7KH0D\R¶VH[LVWLQJ/DUJH+D]DUGRXV:DVWH*HQHUDWRUOLFHQVHZLOOEHUHYLHZHGDQG x XSGDWHGDVQHFHVVDU\ x ,IQHFHVVDU\DIRUPDOKD]DUGRXVZDVWHPLQLPL]DWLRQSURJUDPZLOOEHSXWLQSODFHWRKHOS UHGXFHWKHYROXPHDQGWR[LFLW\RIZDVWHJHQHUDWHG x 'LVSRVDORIKD]DUGRXVZDVWHGXULQJRSHUDWLRQZLOOEHFRPSOHWHGLQDFFRUGDQFHZLWKVWDWH DQGORFDOUHJXODWLRQV x $Q\LQIHFWLRXVZDVWHJHQHUDWHGDWWKHSURSRVHG0HGLFDO,QVWLWXWLRQDOEXLOGLQJVZLOOEH KDQGOHGDQGGLVSRVHGRILQDFFRUGDQFHZLWK03&$*XLGDQFH'RFXPHQWZVZ ,QIHFWLRXV:DVWH0DQDJHPHQW*XLGDQFHIRU*HQHUDWRUV )LVK:LOGOLIH3ODQW&RPPXQLWLHVDQG6HQVLWLYH(FRORJLFDO5HVRXUFHV 5DUH)HDWXUHV )LVKDQG:LOGOLIH5HVRXUFHV [[454,2468,466,2516][10][,I,][Arial]] [[453,2515,2189,2563][10][,I,][Arial]]$8$5*XLGDQFH7KHGHVFULSWLRQRIILVKDQGZLOGOLIHUHVRXUFHVVKRXOGEHUHODWHGWRWKHKDELWDW [[454,2563,972,2611][10][,I,][Arial]]W\SHVGHSLFWHGRQWKHFRYHU [[974,2563,1124,2611][10][,I,][Arial]]W\SHVRI [[1119,2563,1131,2611][10][,I,][Arial]] [[1130,2563,1232,2611][10][,I,][Arial]]PDSV [[1232,2563,1750,2611][10][,I,][Arial]]$Q\GLIIHUHQFHVLQLPSDFWV [[1751,2563,2167,2611][10][,I,][Arial]]EHWZHHQGHYHORSPHQW [[454,2611,1364,2659][10][,I,][Arial]]VFHQDULRVVKRXOGEHKLJKOLJKWHGLQWKHGLVFXVVLRQ [[1365,2611,1377,2659][10][,I,][Arial]] 7KHVWXG\DUHDLVORFDWHGZLWKLQDKLJKO\GHYHORSHGDUHDRI5RFKHVWHUDQGOLWWOHKDELWDWLV DYDLODEOHIRUZLOGOLIH7KHQHDUHVWZDWHUUHVRXUFHVDYDLODEOHLQFOXGHWKH=XPEUR5LYHU DSSUR[LPDWHO\PLOHVHDVWDQG&DVFDGH&UHHNDSSUR[LPDWHO\PLOHVQRUWKZHVW:LOGOLIH VSHFLHVWKDWPD\RFFXUZLWKLQWKHVWXG\DUHDLQFOXGHWKRVHNQRZQWRXVHKXPDQGLVWXUEHG KDELWDWVVXFKDVWKHKRXVHVSDUURZ [[1144,2898,1494,2946][10][,I,][Arial]]3DVVHUGRPHVWLFXV [[1494,2898,1531,2945][10][,,][Arial]] [[1531,2898,1744,2945][10][,,][Arial]]URFNSLJHRQ [[1745,2898,1757,2945][10][,,][Arial]] [[1756,2898,1770,2945][10][,,][Arial]] [[1770,2898,2017,2946][10][,I,][Arial]]&ROXPEDOLYLD [[2018,2898,2136,2945][10][,,][Arial]] DQG UDFFRRQ [[627,2944,875,2992][10][,I,][Arial]]3URF\RQORWRU [[872,2944,908,2991][10][,,][Arial]] [[909,2944,921,2991][10][,,][Arial]] [[920,2944,932,2991][10][,,][Arial]] 3DJH )LQDO$8$5 $XJXVW &XUUHQWODQGFRYHUZLWKLQWKHVWXG\DUHDLVHQWLUHO\GHYHORSHGDQGSUHGRPLQDWHO\LPSHUYLRXV7KH GHYHORSPHQWVFHQDULRZLOOUHSODFHH[LVWLQJLPSHUYLRXVVWUXFWXUHVZLWKRWKHULPSHUYLRXVVWUXFWXUHV 9HJHWDWLRQLVOLPLWHGWRERXOHYDUGWUHHVDQGUDLQJDUGHQSODQWLQJV/DQGFRYHULQWKHSURSRVHG GHYHORSPHQWVFHQDULRZLOOEHVLPLODUWRWKHH[LVWLQJODQGFRYHUDQGZLOOSURYLGHVLPLODUKDELWDWIRU ZLOGOLIH 5DUH)HDWXUHV [[454,641,466,689][10][,I,][Arial]] $IRUPDO1'15 &RUUHVSRQGHQFH0&( 1DWXUDO+HULWDJH,QYHQWRU\ 1+, UHSRUW WKH'15¶VUHVSRQVHLVLQFOXGHGLQ $SSHQGL[% KDVEHHQUHTXHVWHGDQG:6%DOVRUHYLHZHGWKH 01'151+,GDWD /LFHQVH$JUHHPHQW-DQXDU\ 7KLVLQIRUPDWLRQLQGLFDWHV WKHUHDUHPXOWLSOHUHFRUGVRIWKHVSHFLDOFRQFHUQSHUHJULQHIDOFRQ [[1674,832,1983,880][10][,I,][Arial]])DOFRSHUHJULQXV [[1982,832,2142,879][10][,,][Arial]] 2]DUN PLQQRZ [[622,880,919,928][10][,I,][Arial]]1RWURSLVQXELOXV [[919,880,1255,927][10][,,][Arial]] EODFNUHGKRUVH [[1255,880,1673,928][10][,I,][Arial]]0R[RVWRPDGXTXHVKHL [[1671,880,2033,927][10][,,][Arial]] FUHHNKHHOVSOLWWHU [[468,928,669,976][10][,I,][Arial]]/DVPLJRQD [[670,928,682,975][10][,,][Arial]] [[682,928,884,976][10][,I,][Arial]]FRPSUHVVD [[885,928,1519,975][10][,,][Arial]] VWDWHWKUHDWHQHGHOOLSVHPXVVHO [[1519,928,1816,976][10][,I,][Arial]]9HQXVWDFRQFKD [[1817,928,2033,976][10][,I,][Arial]]HOOLSVLIRUPLV [[2033,928,2172,975][10][,,][Arial]] IOXWHG [[2173,928,2187,975][10][,,][Arial]] VKHOOPXVVHO [[708,975,1056,1023][10][,I,][Arial]]/DVPLJRQDFRVWDWD [[1056,975,1092,1022][10][,,][Arial]] [[1093,975,1373,1022][10][,,][Arial]]HONWRHPXVVHO [[1371,975,1780,1023][10][,I,][Arial]]$OLVPLGRQWDPDUJLQDWD [[1781,975,2095,1022][10][,,][Arial]] HGLEOHYDOHULDQ [[468,1023,762,1071][10][,I,][Arial]]9DOHULDQDHGXOLV [[762,1023,774,1070][10][,,][Arial]] [[774,1023,855,1070][10][,,][Arial]]YDU [[855,1023,959,1071][10][,I,][Arial]]FLOLDWD [[961,1023,998,1070] [10][,,][Arial]] [[999,1023,1822,1070][10][,,][Arial]]DQGWKHZDWFKOLVWUXVW\SDWFKHGEXPEOHEHH [[1822,1023,2093,1071][10][,I,][Arial]]%RPEXVDIILQLV [[2094,1023,2108,1070][10][,,][Arial]] [[2108,1023,2120,1070][10][,,][Arial]] [[2119,1023,2237,1070][10][,,][Arial]]ZLWKLQ WKHYLFLQLW\RIWKHVWXG\DUHDRUZLWKLQDRQHPLOHUDGLXVDURXQGWKHVWXG\DUHD 7KH86)LVKDQG:LOGOLIH6HUYLFH 86):6 ,QIRUPDWLRQIRU3ODQQLQJDQG&RQVXOWDWLRQ ,3D& VHUYLFHLQGLFDWHGWKDWWKHIHGHUDOO\HQGDQJHUHGQRUWKHUQORQJHDUHGEDW 1/(%[[1917,1213,2048,1261][10][,I,][Arial]]0\RWLV [[454,1261,721,1309][10][,I,][Arial]]VHSWHQWULRQDOLV [[721,1261,735,1308][10][,,][Arial]] [[735,1261,747,1308][10][,,][Arial]] [[747,1261,815,1308][10][,,][Arial]]DQG [[815,1261,827,1308][10][,,][Arial]] [[827,1261,1328,1308][10][,,][Arial]]UXVW\SDWFKHGEXPEOHEHH [[1329,1261,2010,1 308][10][,,][Arial]]SURSRVHGHQGDQJHUHGWULFRORUHGEDW [[2010,1261,2215,1309][10][,I,][Arial]]3HULP\RWLV [[454,1309,629,1357][10][,I,][Arial]]VXEIODYXV [[629,1309,1482,1356][10][,,][Arial]] H[SHULPHQWDOSRSXODWLRQRIZKRRSLQJFUDQH [[1483,1309,1778,1357][10][,I,][Arial]]*UXVDPHULFDQD [[1778,1309,1814,1356][10][,,][Arial]] [[1815,1309,2239,1356][10][,,][Arial]]DQGFDQGLGDWHVSHFLHV IRUOLVWLQJPRQDUFKEXWWHUIO\ [[979,1357,1307,1405][10][,I,][Arial]]'DQDXVSOH[LSSXV [[1307,1357,1864,1404][10][,,][Arial]] PD\RFFXUZLWKLQRUQHDUWKH [[1865,1357,2058,1404][10][,,][Arial]]VWXG\DUHD [[2059,1357,2071,1404][10][,,][Arial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¶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rial]] 0LWLJDWLRQ3ODQ 9DULRXVPLWLJDWLRQPHDVXUHVPD\EHLQFRUSRUDWHGLQWRGHVLJQWRDYRLGPLQLPL]HRUPLWLJDWHWKH SRWHQWLDOIRUHIIHFWVWRZLOGOLIHLQFOXGLQJ x )ROORZFXUUHQW86):6JXLGHOLQHVIRUWUHHUHPRYDOWRDYRLGLPSDFWVWR1/(% x 3ODQWQDWLYHZHHGIUHHVSHFLHVLQUHYHJHWDWHGDUHDVZKHUHGHHPHGDSSURSULDWH x ,QFRUSRUDWHSROOLQDWRUVSHFLHVLQWRODQGVFDSHGSODQWLQJDUHDVZKHUHGHHPHG DSSURSULDWH 3DJH )LQDO$8$5 $XJXVW x ,QYDVLYHVSHFLHVZLOOEHFRQWUROOHGGXULQJVLWHFRQVWUXFWLRQE\LQVSHFWLQJDQG GHFRQWDPLQDWLQJHTXLSPHQWZKHQPRYLQJEHWZHHQVLWHV x 8WLOL]HZLOGOLIHIULHQGO\HURVLRQFRQWUROEODQNHWWRDYRLGHQWDQJOHPHQWZKHUHGHHPHG DSSURSULDWH x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rial]] [[454,1041,466,1089][10][,I,][Arial]] 7KH$8$5VWXG\DUHDZDVUHYLHZHGIRUWKHSRWHQWLDOIRUKLVWRULFRUDUFKHRORJLFDOUHVRXUFHVXVLQJ DYDULHW\RIGDWDLQFOXGLQJGDWDIURPWKH6WDWH+LVWRULF3UHVHUYDWLRQ2IILFH 6+32 DQG0LQQHVRWD ,QGLDQ$IIDLUV&RXQFLO 0,$& DVZHOODVSULRUVWXGLHVFRQGXFWHGIRUWKHDUHD 0D\R&OLQLF 5RFKHVWHU&DPSXV$Q$VVHVVPHQWRI&XOWXUDO5HVRXUFHV 9ROXPHV,DQG,, 7KH016+32¶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¶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x &RQVWUXFWDOLQHDUSDUNWKDWKRQRUVWKH/RXUGHV+LJK6FKRROVLWH x 'HWHUPLQHWHPSRUDU\DQGSHUPDQHQWORFDWLRQIRU:LOOLDP:0D\RVWDWXHDQGFRRUGLQDWH ZLWK5RFKHVWHU+HULWDJH3UHVHUYDWLRQ&RPPLVVLRQLIQHFHVVDU\ x 'HYHORSXQDQWLFLSDWHGGLVFRYHULHVSODQ 9LVXDO 6FHQLFYLHZVRUYLVWDVPD\LQFOXGHVSHFWDFXODUYLHZLQJSRLQWVDORQJODNHVULYHUVRU EOXIIVYLUJLQWLPEHUWUDFWVSUDLULHUHPQDQWVJHRORJLFDOIHDWXUHVZDWHUIDOOVVSHFLPHQ WUHHVRUSORWVRIZLOGIORZHUV'HVFULEHDQ\SURMHFWUHODWHGYLVXDOHIIHFWVVXFKDVYDSRU SOXPHVRUJODUHIURPLQWHQVHOLJKWV'LVFXVVWKHSRWHQWLDOYLVXDOHIIHFWVIURPWKHSURMHFW ,GHQWLI\DQ\PHDVXUHVWRDYRLGPLQLPL]HRUPLWLJDWHYLVXDOHIIHFWV [[454,1518,466,1566][10][,I,][Arial]] 7KHUHDUHQRVFHQLFYLHZVRUYLVWDVZLWKLQRUQHDUWKHVWXG\DUHD6LWHOLJKWLQJXQGHUHDFK VFHQDULRZLOOEHFRQVLVWHQWZLWKWKH&LW\RI5RFKHVWHURUGLQDQFHV$OLJKWLQJSODQZLOOEH GHYHORSHGDQGVXEPLWWHGWRWKH&LW\RI5RFKHVWHUGXULQJWKHVLWHSODQQLQJUHYLHZDQGDSSURYDO VWDJH 0LWLJDWLRQ3ODQ x $OLJKWLQJSODQZLOOEHGHYHORSHGDQGVXEPLWWHGWRWKH&LW\RI5RFKHVWHUGXULQJWKHVLWH SODQQLQJUHYLHZDQGDSSURYDOVWDJH $XJXVW 'HVFULEHWKHHIIHFWRIWKHSURMHFW¶VWUDIILFJHQHUDWLRQRQDLUHPLVVLRQV 9HKLFOH(PLVVLRQV 'LVFXVVWKHSURMHFW¶VYHKLFOH UHODWHGHPLVVLRQVHIIHFWRQDLUTXDOLW\,GHQWLI\PHDVXUHV HJWUDIILFRSHUDWLRQDOLPSURYHPHQWVGLHVHOLGOLQJPLQLPL]DWLRQSODQ WKDWZLOOEHWDNHQWR PLQLPL]HRUPLWLJDWHYHKLFOHUHODWHGHPLVVLRQV [[454,583,466,631][10][,I,][Arial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¶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rial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x 'XULQJFRQVWUXFWLRQFRQWUROGXVWE\ZDWHULQJVSULQNOLQJRUFDOFLXPFKORULGHDSSOLFDWLRQV DVQHFHVVDU\ x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¶V [[489,355,525,403][10][,I,][Arial]] [[526,355,538,403][10][,I,][Arial]] [[585,355,748,403][10][,I,][Arial]]'HVFULEH [[749,355,761,403][10][,I,][Arial]] [[761,355,829,403][10][,I,][Arial]]DQ\ [[827,355,839,403][10][,I,][Arial]] [[839,355,1016,403][10][,I,][Arial]]PLWLJDWLRQ [[1017,355,1029,403][10][,I,][Arial]] [[1028,355,1232,403][10][,I,][Arial]]FRQVLGHUHG [[1230,355,1242,403][10][,I,][Arial]] [[1242,355,1484,403][10][ ,I,][Arial]]WRUHGXFHWKH [[1485,355,1497,403][10][,I,][Arial]] [[1649,355,1661,403][10][,I,][Arial]] [[1660,355,1755,403][10][,I,][Arial]]*+* [[1754,355,1766,403][10][,I,][Arial]] [[1766,355,1960,403][10][,I,][Arial]]HPLVVLRQV [[1960,355,1972,403][10][,I,][Arial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x ,QFOXGHHQHUJ\HIILFLHQWDSSOLDQFHVHTXLSPHQWDQGOLJKWLQJ x 8WLOL]HHQHUJ\HIILFLHQWEXLOGLQJVKHOOV x ,PSOHPHQWZDVWHEHVWPDQDJHPHQWSUDFWLFHVUHF\FOHDQGFRPSRVWDSSURSULDWH PDWHULDOZKHQDSSOLFDEOH x 2QVLWHQDWLYHODQGVFDSLQJWRUHGXFHSRWDEOHZDWHUDQGSHVWLFLGHXVHDORQJZLWKWKH LQFOXVLRQRIDGGLWLRQDOJUHHQVSDFHVWUHHVDQGWUHHWUHQFKHVWRLPSURYHORFDODLU TXDOLW\DEVRUEJUHHQKRXVHJDVHPLVVLRQVDQGUHGXFHORFDOXUEDQKHDWLVODQGHIIHFW x 3URYLGHRQVLWHHOHFWULFYHKLFOHFKDUJLQJLQIUDVWUXFWXUHLQSDUNLQJVWUXFWXUHV x 6HWWLQJ0D\R(QHUJ\8VH,QWHQVLW\ (8, WDUJHWVIRUEXLOGLQJV x 6HHN/(('&HUWLILFDWLRQIRUEXLOGLQJV x &RQVWUXFWDJHRWKHUPDORSHQORRSV\VWHPWRKHDWFRROEXLOGLQJV ,PSOHPHQWDWLRQRIWKHDERYHVWUDWHJLHVZLOOEHHYDOXDWHGRQDFDVHE\FDVHEDVLVEDVHGRQ IHDVLELOLW\VFKHGXOHFRGHUHTXLUHPHQWVDQGVWDNHKROGHUSUHIHUHQFHV [[479,1916,515,1964][10][,I,][Arial]] [[516,1916,528,1964][10][,I,][Arial]] [[585,1916,1925,1964][10][,I,][Arial]]'HVFULEHDQGTXDQWLI\UHGXFWLRQVIURPVHOHFWHGPLWLJDWLRQLISURSRVHGWR SURMHFW¶V*+* [[585,1964,780,2012][10][,I,][Arial]]UHGXFHWKH [[782,1964,794,2012][10][,I,][Arial]] [[784,1964,803,2012][10][,I,][Arial]] [[1053,1964,1065,2012][10][,I,][Arial]] [[1064,1964,1406,2012][10][, I,][Arial]]HPLVVLRQV([SODLQ [[1407,1964,1419,2012][10][,I,][Arial]] [[1418,1964,1493,2012][10][,I,][Arial]]ZK\ [[1492,1964,1504,2012][10][,I,][Arial]] [[1504,1964,1562,2012][10][,I,][Arial]]WKH [[1561,1964,1573,2012][10][,I,][Arial]] [[1572,1964,1727,2012][10][,I,][Arial]]VHOHFWHG [[1725,1964,1737,2012][10][,I,][Arial]] [[1737,1964,1914,2012][10][,I,][Arial]]PLWLJDWLRQ [[1914,1964,1926,2 012][10][,I,][Arial]] [[1926,1964,2011,2012][10][,I,][Arial]]ZDV [[585,2012,764,2060][10][,I,][Arial]]SUHIHUUHG [[766,2012,778,2060][10][,I,][Arial]] *HRWKHUPDOLVDPLWLJDWLRQPHDVXUHEHLQJFRQVLGHUHGZLWKWKLVSURMHFWDQGLVDUHOLDEOHORFDO VRXUFHRIUHQHZDEOHHQHUJ\DQGSURGXFHVRQO\DERXWRQHVL[WKRIWKHFDUERQGLR[LGHRIDQDWXUDO ²² JDVSRZHUSODQWDQGOLWWOHLIDQ\QLWURXVR[LGHRUVXOIXUGLR[LGH 'XHWRWKHKLJKOHYHOQDWXUHRIWKLVDQDO\VLVDQGXQFHUWDLQW\RIDQ\VSHFLILFIXWXUHLPSOHPHQWDWLRQ RWKHUTXDQWLILFDWLRQRIUHGXFWLRQVLVQ¶WDYDLODEOHDWWKLVWLPH RIPLWLJDWLRQPHDVXUHV [[468,2512,504,2560][10][,I,][Arial]] [[505,2512,517,2560][10][,I,][Arial]] [[585,2512,2120,2560][10][,I,][Arial]]4XDQWLI\WKHSURSRVHGSURMHFWVSUHGLFWHGQHWOLIHWLPH*+*HPLVVLRQV WRWDOWRQVRI [[585,2559,700,2607][10][,I,][Arial]]\HDUV [[701,2559,713,2607][10][,I,][Arial]] [[713,2559,2140,2607][10][,I,][Arial]]DQGKRZWKRVHSUHGLFWHGHPLVVLRQVPD\DIIHFWDFKLHYHPHQWRIWKH0LQQHVRWD [[585,2607,673,2655][10][,I,][Arial]]1H[W [[671,2607,683,2655][10][,I,][Arial]] [[683,2607,887,2655][10][,I,][Arial]]*HQHUDWLRQ [[888,2607,900,2655][10][,I,][Arial]] [[900,2607,1345,2655][10][,I,][ Arial]](QHUJ\$FWJRDOVDQGRU [[1342,2607,1354,2655][10][,I,][Arial]] [[1353,2607,1451,2655][10][,I,][Arial]]RWKHU [[1447,2607,1459,2655][10][,I,][Arial]] [[1459,2607,1553,2655][10][,I,][Arial]]PR UH [[1553,2607,1565,2655][10][,I,][Arial]] [[1565,2607,1824,2655][10][,I,][Arial]]VWULQJHQWVWDWH [[1824,2607,1836,2655][10][,I,][Arial]] [[1836,2607,1972,2655][10][,I,][Arial]]RUORFDO [[1969,2607,1981,2655][10][,I,][Arial]] [[1980,2607,2076,2655][10][,I,][Arial]]*+* [[2075,2607,2087,2655][10][,I,][Arial]] [[585,2655,755,2703][10][,I,][Arial]]UHGXFWLRQ [[756,2655,768,2703][10][,I,][Arial]] [[768,2655,878,2703][10][,I,][Arial]]JRDOV [[878,2655,890,2703][10][,I,][Arial]] 0LQQHVRWD¶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¶VSUHGLFWHGQHW*+*HPLVVLRQVRYHUWKHSURMHFW¶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rial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¶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x QG6W1:DQGQG$YH1: x :&HQWHU6WDQGQG$YH1: x QG6W6:DQGQG$YH6: x QG6W1:DQGUG$YH1: x VW6W1:DQGUG$YH1: x :&HQWHU6WDQGUG$YH1: x UG$YH6:DQG3DUNLQJ(QWUDQFH x VW6W6:DQGUG$YH6: x QG6W6:UG$YH6: x QG6W1:WK$YH1: x VW6W1:WK$YH1: x :&HQWHU6WWK$YH1: x WK$YH1:3DUNLQJH[LW x VW6W6:WK$YH6: x QG6W6:WK$YH6: x QG6W6:WK$YH6: x 'URSRII3DUNLQJ x VW6W6:WK$YH6: x QG6W6:WK$YH6: x %URDGZD\$YH6:&HQWHU6W x WK$YH6::&HQWHU6W x WK$YH1:QG6W1: x WK$YH1:&LYLF&HQWHU'U1: x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¶VOHWWHURI 5RFKHVWHUGXULQJWKHGHYHORSPHQWDQGUHYLHZRIWKHWUDIILFDQDO\VLV7KH FRQGLWLRQDODSSURYDORIWKHWUDIILFDQDO\VLVLQFOXGHVWKHIROORZLQJPLWLJDWLRQVIRUWKHILQDOFRQGLWLRQ DIWHUSURMHFWFRQVWUXFWLRQLVFRPSOHWH x $VVWUHHWVDUHUHFRQVWUXFWHGXSGDWHWKHVWUHHWVFDSHWRPHHWGHVLJQJXLGHOLQHVDQG FRQYHUWRQVWUHHWELF\FOHODQHVWRRIIVWUHHWSURWHFWHGF\FOHWUDFNV x WK &RQVWUXFWFXUEH[WHQVLRQVLQWKHQRUWKHDVWDQGVRXWKHDVWFRUQHUVRIWKHLQWHUVHFWLRQRI VW $YHQXH1:DQG6WUHHW1: x WK $QDO\]HWUDIILFRQ6WUHHW6:WRGHWHUPLQHWUDIILFLPSDFWVDQGQHHGVIRUDQ\DGGLWLRQDO UGWKWK PLWLJDWLRQDWWKHLQWHUVHFWLRQVZLWK$YHQXH6:$YHQXH6:DQG$YHQXH6: x QGWK &RPSOHWHDQ,QWHUVHFWLRQ&RQWURO(YDOXDWLRQIRUWKHLQWHUVHFWLRQRI6WUHHW1:DQG $YHQXH1:DQGFRQVWUXFWWKHUHFRPPHQGHGPLWLJDWLRQ$URXQGDERXWRUDQRWKHUIRUPRI WUDIILFFRQWUROPD\EHUHFRPPHQGHGLQVWHDGRIWKHVLJQDODQDO\]HGLQWKHWUDIILFVWXG\ x WK $QDO\]HIXWXUHWUDIILFDWWKHLQWHUVHFWLRQRI&LYLF&HQWHU'ULYHDQG$YHQXH1:WR GHWHUPLQHZKHQWKHVHFRQGQRUWKERXQGOHIWWXUQODQHSURSRVHGLQWKHWUDIILFVWXG\ZLOOEH QHHGHGDQGHQVXUHWKDWWKLVPLWLJDWLRQPHHWV6WDWH$LGVWDQGDUGV x QG 5HGHVLJQ$YHQXH6:WRSULRULWL]HSHGHVWULDQDQGELF\FOHPRYHPHQW x QG &RQVWUXFWDWZRZD\RIIVWUHHWF\FOHWUDFNRQ:HVW&HQWHU6WUHHWEHWZHHQ$YHQXH WK DQG$YHQXH x 2SHQWKHJURXQGIORRUOREE\RIWKHQHZKRVSLWDOWRDOORZSXEOLFSHGHVWULDQWUDYHOZKHUH UGWK $YHQXH6:DQG$YHQXH6:DUHSURSRVHGWREHYDFDWHG 7KLVPLWLJDWLRQQHHGVWREHYHWWHGLQGHWDLOZLWKWKH&LW\RI5RFKHVWHUDQGRWKHUVWDNHKROGHUVWR GHWHUPLQHWKHPRVWDSSURSULDWHDOWHUQDWHURXWHEDVHGRQVDIHW\DYDLODEOHVSDFHDQG FRQIRUPDQFHWRWKH&LW\RI5RFKHVWHU¶V$FWLYH7UDQVSRUWDWLRQ3ODQ 7KHPLWLJDWLRQVSURSRVHGIRUWKHLQWHULPFRQGLWLRQGXULQJFRQVWUXFWLRQDUH x &RPSOHWHDQ,QWHUVHFWLRQ&RQWURO(YDOXDWLRQIRUWKHLQWHUVHFWLRQRI:HVW&HQWHU6WUHHW WK DQG$YHQXHDQGFRQVWUXFWWKHUHFRPPHQGHGPLWLJDWLRQ$URXQGDERXWRUDQRWKHUIRUP RIWUDIILFFRQWUROPD\EHUHFRPPHQGHGLQVWHDGRIWKHVLJQDODQDO\]HGLQWKHWUDIILFVWXG\ 7KHUHFRPPHQGHGLQWHUVHFWLRQFRQWUROZLOOUHPDLQLQSODFHDIWHUFRQVWUXFWLRQLVFRPSOHWH DVPLWLJDWLRQZLOODOVREHQHHGHGDWWKLVLQWHUVHFWLRQLQWKHILQDOFRQGLWLRQ x QGQG 0RGLI\WKHWUDIILFVLJQDODW6WUHHW6:DQG$YHQXH6:WRLQFOXGHVLJQDOLQGLFDWLRQV IRUWKHQHZVRXWKERXQGDSSURDFK0RGLI\WKHVLJQDODJDLQDIWHUFRQVWUXFWLRQLVFRPSOHWH x QG 8SGDWHWKHFRRUGLQDWHGVLJQDOWLPLQJDORQJWKH6WUHHW6:FRUULGRU x UG 8SGDWHWKHVLJQDOWLPLQJDWWKHLQWHUVHFWLRQVRI:HVW&HQWHU6WUHHWZLWK$YHQXHDQG WK $YHQXH x WK 0RGLI\WKHSDYHPHQWPDUNLQJRQ:HVW&HQWHU6WUHHWIURPZHVWRI$YHQXHWRWKHHDVW UG WKURXJKWKHLQWHUVHFWLRQZLWK$YHQXHWRUHPRYHWKHSDUNLQJODQHDGGDGHGLFDWHG WKUG HDVWERXQGWKURXJKODQHDW$YHQXH6:DGGDGHGLFDWHGHDVWERXQGOHIWWXUQODQHDW UGWK $YHQXH6:DQGPRYHWKHELNHODQHWRWKHFXUEEHWZHHQ$YHQXH6:DQG$YHQXH 6:0RGLI\WKHSDYHPHQWPDUNLQJVDJDLQDIWHUFRQVWUXFWLRQLVFRPSOHWH 3DJH )LQDO$8$5 $XJXVW &XPXODWLYH3RWHQWLDO(IIHFWV [[454,364,466,412][10][,I,][Arial]] [[454,412,2256,460][10][,I,][Arial]]%HFDXVHWKH$8$5SURFHVVE\LWVQDWXUHLVLQWHQGHGWRGHDOZLWKFXPXODWLYHSRWHQWLDOHIIHFWVIURP [[454,460,2203,508][10][,I,][Arial]]DOOIXWXUHGHYHORSPHQWVZLWKLQWKH$8$5DUHDLWLVSUHVXPHGWKDWWKHUHVSRQVHVWRDOOLWHPVRQ [[454,508,1640,556][10][,I,][Arial]]WKH($:IRUPDXWRPDWLFDOO\HQFRPSDVVWKHLPSDFWVIURPDOODQWL [[1639,508,2240,556][10][,I,][Arial]]FLSDWHGGHYHORSPHQWVZLWKLQWKH [[453,555,675,603][10][,I,][Arial]]$8$5DUHD [[675,555,687,603][10][,I,][Arial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rial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y &/'hZ^ 87,/,7< 538 6833/< %XUQVDQG0F'RQQHOO ,1$&7,9(538:(//6 0DVWHUSODQ3+2SHQ 3803,1*5$7( JSP '5$)7 52&+(67(538%/,&52&+(67(538%/,&0D\R&OLQLF'RZQWRZQ 0,11(627$81,48( /RRS)HDVLELOLW\6WXG\ )LUVW6WUHHW6:&52666(&7,21 (QJLQHHULQJ,QF6,7(:(//$1' 121&20081,7< 87,/,7<:(//1R &52666(&7,21 38%/,&6833/< 5RFKHVWHU01 /2&$7,216 :(//180%(5 /(*(1' 678'<$5($ $ :(//6:(//6 352-(&7 ),*85( &/,(17 ^`7,7/( IW *5281':$7(5/(9(/ :(//:,7+12:$7(5 /(9(/3803,1*'$7$ 0DVWHUSODQ3K2SHQ/RRS 3803,1*5$7( JSP :$7(5021,725,1* 52&+(67(538%/,& 0,11(627$81,48( '5$)7 0D\R&OLQLF'RZQWRZQ 6833/<:(//12 &52666(&7,21 )LUVW6WUHHW6: %XUQVDQG0F'RQQHOO *5281':$7(5 *(2/2*,&$/ )HDVLELOLW\6WXG\ '5$)7 :(//6&5((1 5RFKHVWHU01 (QJLQHHULQJ,QF 87,/,7< 538 /(*(1' )/2:3$7+ $48,7$5' 076,021 :(//12 $$ $ :(// 352-(&7 ^` ),*85( &/,(17 7,7/( :(//:,7+12:$7(5 /(9(/3803,1*'$7$ 0DVWHUSODQ3K2SHQ/RRS 3803,1*5$7( JSP :$7(5021,725,1* 52&+(67(538%/,& 0,11(627$81,48( '5$)7 0D\R&OLQLF'RZQWRZQ 6833/<:(//12 &52666(&7,21 )LUVW6WUHHW6: %XUQVDQG0F'RQQHOO *(2/2*,&$/ )HDVLELOLW\6WXG\ 5RFKHVWHU01 (QJLQHHULQJ,QF 87,/,7< 538 /(*(1' $48,7$5' :(//12 %% $ :(// 352-(&7 ^` ),*85( &/,(17 7,7/( (/(9$7,21 IHHW % 6RXWK WWE/y tdZt>>ZKZ^ ZK,^dZWh>/hd/>/dz t>>ZKZ^ 0LQQHVRWD8QLTXH:HOO1XPEHU 0,11(627$'(3$570(172)+($/7+ 2OPVWHG &RXQW\ (QWU\'DWH :(//$1'%25,1*5(3257 5RFKHVWHU 4XDG 8SGDWH'DWH /DZUHQFH)RUPDWLRQ /RFDWHGE\ 0LQQHVRWD'HSDUWPHQWRI+HDOWK 5HPDUNV /RFDWH0HWKRG *36'LIIHUHQWLDOO\&RUUHFWHG PHWHUV *$00$/2**('%<0*6 0LQQHVRWD8QLTXH:HOO1XPEHU 0,11(627$'(3$570(172)+($/7+ 2OPVWHG &RXQW\ (QWU\'DWH :(//$1'%25,1*5(3257 5RFKHVWHU 4XDG 8SGDWH'DWH [[992,224,1549,272][10][,I,][Times New Roman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imes New Roman]]0LQQHVRWD6WDWXWHV&KDSWHU & 4XDG,' 5HFHLYHG'DWH :HOO1DPH7RZQVKLS5DQJH'LU6HFWLRQ6XEVHFWLRQ:HOO'HSWK'HSWK&RPSOHWHG'DWH:HOO&RPSOHWHG 52&+(67(5=RQH0HWHUV 6\VWHP;< 0LQQHVRWD8QLTXH:HOO1XPEHU 0,11(627$'(3$570(172)+($/7+ 2OPVWHG &RXQW\ (QWU\'DWH :(//$1'%25,1*5(3257 5RFKHVWHU 4XDG 8SGDWH'DWH [[992,224,1549,272][10][,I,][Times New Roman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imes New Roman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imes New Roman]]0LQQHVRWD6WDWXWHV&KDSWHU & 4XDG,' 5HFHLYHG'DWH :HOO1DPH7RZQVKLS5DQJH'LU6HFWLRQ6XEVHFWLRQ:HOO'HSWK'HSWK&RPSOHWHG'DWH:HOO&RPSOHWHG 52&+(67(5:'%'&&%IWIW'X&KLHQ*URXS3UDLULH'X&KLHQ /DVW6WUDW'HSWKWR%HGURFN IW (DX&ODLUH)RUPDWLRQ /RFDWHGE\ 0LQQHVRWD'HSDUWPHQWRI+HDOWK 5HPDUNV /RFDWH0HWKRG *36'LIIHUHQWLDOO\&RUUHFWHG PHWHUV *$00$/2**(' 0LQQHVRWD8QLTXH:HOO1XPEHU 0,11(627$'(3$570(172)+($/7+ 2OPVWHG &RXQW\ (QWU\'DWH :(//$1'%25,1*5(3257 5RFKHVWHU 4XDG 8SGDWH'DWH [[992,224,1549,272][10][,I,][Times New Roman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imes New Roman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imes New Roman]]0LQQHVRWD6WDWXWHV&KDSWHU ' 4XDG,' 5HFHLYHG'DWH :HOO1DPH7RZQVKLS5DQJH'LU6HFWLRQ6XEVHFWLRQ:HOO'HSWK'HSWK&RPSOHWHG'DWH:HOO&RPSOHWHG 52&+(67(5:&''''%%HGURFN IW 6W/DZUHQFH)RUPDWLRQ WZ/sdt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imes New Roman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imes New Roman]]0LQQHVRWD6WDWXWHV&KDSWHU & 4XDG,' 5HFHLYHG'DWH :HOO1DPH7RZQVKLS5DQJH'LU6HFWLRQ6XEVHFWLRQ:HOO'HSWK'HSWK&RPSOHWHG'DWH:HOO&RPSOHWHG 670$5< :$$'%$&IWIW (OHY0HWKRG'ULOO0HWKRG (OHYDWLRQ 'ULOO)OXLG /L'$5P'(0 01'15 $GGUHVV8VH6WDWXV $FWLYH SXEOLFVXSSO\QRQFRPPQRQWUDQVLHQW :HOO+\GURIUDFWXUHG" &:52&+(67(501 <HV )URP 1R 7R &DVLQJ7\SH-RLQW 6WHSGRZQ 1R 'ULYH6KRH"<HV 6WUDWLJUDSK\,QIRUPDWLRQ$ERYH%HORZ *HRORJLFDO0DWHULDO)URP7R IW &RORU+DUGQHVV &DVLQJ'LDPHWHU:HLJKW '5,)7 LQ7RIWOEVIW 673(7(56$1'6721( LQ7R5 63(&,)<,15(0$5.6 8QLTXH1XPEHU9HULILFDWLRQ,QSXW'DWH ,QIRUPDWLRQIURP $QJOHG'ULOO+ROH :HOO&RQWUDFWRU 7KHLQ:HOO&R 0LQQHVRWD8QLTXH:HOO1XPEHU 0,11(627$'(3$570(172)+($/7+ 2OPVWHG &RXQW\ (QWU\'DWH DS !PHWHUV 25,*,1$//<52&+(67(5'$,5<25,*,1$//2*+$66:/$7 0LQQHVRWD8QLTXH:HOO1XPEHU 0,11(627$'(3$570(172)+($/7+ 2OPVWHG &RXQW\ (QWU\'DWH :(//$1'%25,1*5(3257 5RFKHVWHU 4XDG 8SGDWH'DWH [[992,227,1551,275][10][,I,][Times New Roman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imes New Roman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ϭϲϭ^ƚ͘ŶƚŚŽŶLJǀĞ͕^ƵŝƚĞϵϭϵ^ĂŝŶƚWĂƵů͕DEϱϱϭϬϯ D/͘ƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐΛƐƚĂƚĞ͘ŵŶ͘ƵƐ ĂƚĞ͗ ϬϱͬϭϱͬϮϬϮϰ ůůŝŽƚDŽŚůĞƌ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ ϱϬϳ͘ϯϮϴ͘Ϯϵϰϭ ĐŽŵŵƵŶŝƚLJĚĞǀĞůŽƉŵĞŶƚΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀ <ĂƌůŽƌƌŝŐĂŶ DĂLJŽůŝŶŝĐ ϱϬϳ͘Ϯϴϰ͘ϮϯϴϮ ĐŽƌƌŝŐĂŶ͘ŬĂƌůΛŵĂLJŽ͘ĞĚƵ WƌŽũĞĐƚEĂŵĞ͗ ŽůĚ͘&ŽƌǁĂƌĚ͘ ^ƵďŵŝƚƚĞƌ͛Ɛ hŶďŽƵŶĚ͘/Ŷ WƌŽũĞĐƚ/͗ ZŽĐŚĞƐƚĞƌ <ŶŽǁŶŽƌ^ƵƐƉĞĐƚĞĚĞŵĞƚĞƌŝĞƐ տ WůĂƚƚĞĚĞŵĞƚĞƌŝĞƐ տ hŶƉůĂƚƚĞĚĞŵĞƚĞƌŝĞƐ տ ƵƌŝĂů&ŝůĞ տ ƵƚŚĞŶƚŝĐĂƚĞĚƵƌŝĂů EŽƚĞƐͬŽŵŵĞŶƚƐ dŚĂŶŬLJŽƵĨŽƌƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽĐŽŵŵĞŶƚŽŶƚŚĞĂďŽǀĞůŝƐƚĞĚƉƌŽũĞĐƚ͘/ŚĂǀĞƌĞǀŝĞǁĞĚƚŚŝƐƉƌŽũĞĐƚ ƉƵƌƐƵĂŶƚƚŽƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŐŝǀĞŶƚŽƚŚĞDŝŶŶĞƐŽƚĂ/ŶĚŝĂŶĨĨĂŝƌƐŽƵŶĐŝůďLJƚŚĞWƌŝǀĂƚĞĞŵĞƚĞƌŝĞƐĐƚ ;D^ϯϬϳ͘ϬϴͿ͕ĂŶĚƚŚĞDŝŶŶĞƐŽƚĂ&ŝĞůĚƌĐŚĂĞŽůŽŐLJĐƚ;D^ϭϯϴ͘ϯϭͲ͘ϰϭͿ͘dŚĞƌĞĂƌĞŶŽŬŶŽǁŶŽƌƐƵƐƉĞĐƚĞĚ ďƵƌŝĂůƐŝƚĞƐƚŚĂƚŵĂLJďĞĂĨĨĞĐƚĞĚďLJƚŚŝƐƉƌŽũĞĐƚ͘WůĞĂƐĞŚĂǀĞĂŶƵŶĂŶƚŝĐŝƉĂƚĞĚĚŝƐĐŽǀĞƌLJƉůĂŶŝŶƉůĂĐĞ͘ ZĞĐŽŵŵĞŶĚĂƚŝŽŶƐ >ĞƚƚĞƌϭ ց EŽƚƉƉůŝĐĂďůĞ ց EŽŽŶĐĞƌŶƐ տ DŽŶŝƚŽƌŝŶŐ տ ǀŽŝĚĂŶĐĞ տ WŚĂƐĞ/Ăʹ>ŝƚĞƌĂƚƵƌĞZĞǀŝĞǁ տ WŚĂƐĞ/ʹZĞĐŽŶŶĂŝƐƐĂŶĐĞƐƵƌǀĞLJ տ WŚĂƐĞ//ʹǀĂůƵĂƚŝŽŶ տ WŚĂƐĞ///ʹĂƚĂZĞĐŽǀĞƌLJ տ KƚŚĞƌ /ĨLJŽƵƌĞƋƵŝƌĞĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶŽƌŚĂǀĞƋƵĞƐƚŝŽŶƐ͕ĐŽŵŵĞŶƚƐ͕ŽƌĐŽŶĐĞƌŶƐƉůĞĂƐĞĐŽŶƚĂĐƚŽƵƌŽĨĨŝĐĞ͘ ^ŝŶĐĞƌĞůLJ͕ >ŝůůLJ'ĞƌĂŐŚƚLJ ƵůƚƵƌĂůZĞƐŽƵƌĐĞDĂŶĂŐĞƌ D/ ϭϲϭZŽŶĚŽǀĞŶƵĞ͕^ƚĞ͘ϵϭϵ ^ĂŝŶƚWĂƵůDEϱϱϭϬϯ ϲϱϭͲϱϯϵͲϮϮϬϮ ůŝůůLJ͘ŐĞƌĂŐŚƚLJΛƐƚĂƚĞ͘ŵŶ͘ƵƐ >ĞƚƚĞƌϮ ϙ 8QLWHG6WDWHV'HSDUWPHQWRIWKH,QWHULRU ),6+$1':,/'/,)(6(59,&( 0LQQHVRWD:LVFRQVLQ(FRORJLFDO6HUYLFHV)LHOG2IILFH $PHULFDQ%OYG(DVW %ORRPLQJWRQ01 3KRQH VOLVWVDQGLQIRUPDWLRQ$QXSGDWHGOLVWPD\EH UHTXHVWHGWKURXJKWKH,3D&V\VWHPE\FRPSOHWLQJWKHVDPHSURFHVVXVHGWRUHFHLYHWKHHQFORVHGOLVW &RQVXOWDWLRQ7HFKQLFDO$VVLVWDQFH 3OHDVHUHIHUWRUHIHUWRRXU6HFWLRQ 3URMHFWFRGH 0LQQHVRWD:LVFRQVLQ)HGHUDO(QGDQJHUHG :HUHFRPPHQGUXQQLQJWKHSURMHFW LILWTXDOLILHV WKURXJKRXU 6SHFLHV'HWHUPLQDWLRQ.H\ 0LQQHVRWD:LVFRQVLQ 'NH\ $GHPRQVWUDWLRQYLGHRVKRZLQJKRZWR DFFHVVDQGXVHWKHGHWHUPLQDWLRQNH\LVDYDLODEOH3OHDVHQRWHWKDWWKH0LQQHVRWD:LVFRQVLQ'NH\LVWKHWKLUG RSWLRQRIDYDLODEOHGNH\V'NH\VDUHWRROVWRKHOS)HGHUDODJHQFLHVDQGRWKHUSURMHFWSURSRQHQWVGHWHUPLQH LIWKHLUSURSRVHGDFWLRQKDVWKHSRWHQWLDOWRDGYHUVHO\DIIHFWIHGHUDOO\OLVWHGVSHFLHVDQGGHVLJQDWHGFULWLFDO KDELWDW7KH0LQQHVRWD:LVFRQVLQ'NH\LQFOXGHVDVWUXFWXUHGVHWRITXHVWLRQVWKDWDVVLVWVDSURMHFWSURSRQHQW LQGHWHUPLQLQJZKHWKHUDSURSRVHGSURMHFWTXDOLILHVIRUDFHUWDLQSUHGHWHUPLQHGFRQVXOWDWLRQRXWFRPHIRUDOO IHGHUDOO\OLVWHGVSHFLHVIRXQGLQ0LQQHVRWDDQG:LVFRQVLQ H[FHSWIRUWKHQRUWKHUQORQJHDUHGEDWVHHEHORZ ZKLFKLQFOXGHVGHWHUPLQDWLRQVRI²QRHIIHFW³RU²PD\DIIHFWQRWOLNHO\WRDGYHUVHO\DIIHFW,QHDFKFDVHWKH 6HUYLFHKDVFRPSLOHGDQGDQDO\]HGWKHEHVWDYDLODEOHLQIRUPDWLRQRQWKHVSHFLHVµELRORJ\DQGWKHLPSDFWVRI FHUWDLQDFWLYLWLHVWRVXSSRUWWKHVHGHWHUPLQDWLRQV ,I\RXUFRPSOHWHGGNH\RXWSXWOHWWHUVKRZVD1R(IIHFW 1( GHWHUPLQDWLRQIRUDOOOLVWHGVSHFLHVSULQW\RXU ,3D&RXWSXWOHWWHUIRU\RXUILOHVWRGRFXPHQW\RXUFRPSOLDQFHZLWKWKH(QGDQJHUHG6SHFLHV$FW )RU)HGHUDOSURMHFWVZLWKD²1RW/LNHO\WR$GYHUVHO\$IIHFW³ 1/$$ GHWHUPLQDWLRQRXUFRQFXUUHQFHEHFRPHV YDOLGLI\RXGRQRWKHDURWKHUZLVHIURPXVDIWHUDGD\UHYLHZSHULRGDVLQGLFDWHGLQ\RXUOHWWHU ,I\RXUGNH\RXWSXWOHWWHULQGLFDWHVDGGLWLRQDOFRRUGLQDWLRQZLWKWKH0LQQHVRWD:LVFRQVLQ(FRORJLFDO6HUYLFHV )LHOG2IILFHLVQHFHVVDU\ LH\RXJHWD²0D\$IIHFW³GHWHUPLQDWLRQ \RXZLOOEHSURYLGHGDGGLWLRQDO JXLGDQFHRQFRQWDFWLQJWKH6HUYLFHWRFRQWLQXH(6$FRRUGLQDWLRQRXWVLGHRIWKHNH\(6$FRPSOLDQFHFDQQRW EHFRQFOXGHGXVLQJWKHNH\IRU²0D\$IIHFW³GHWHUPLQDWLRQVXQOHVVRWKHUZLVHLQGLFDWHGLQ\RXURXWSXWOHWWHU 1RWH2QFH\RXREWDLQ\RXURIILFLDOVSHFLHVOLVW\RXDUHQRWUHTXLUHGWRFRQWLQXHLQ,3D&ZLWKGNH\V DOWKRXJKLQPRVWFDVHVWKHVHWRROVVKRXOGH[SHGLWH\RXUUHYLHZ ,I\RXFKRRVHWRPDNHDQHIIHFWV GHWHUPLQDWLRQRQ\RXURZQ\RXPD\GRVR,IWKHSURMHFWLVD)HGHUDO$FWLRQ\RXPD\ZDQWWRUHYLHZRXU VHFWLRQ 3URMHFWFRGH PD\DIIHFW 6KRXOG\RXGHWHUPLQHWKDWSURMHFWDFWLYLWLHVDQ\IHGHUDOO\OLVWHGSOHDVHFRQWDFWRXURIILFH IRUIXUWKHUFRRUGLQDWLRQ/HWWHUVZLWKUHTXHVWVIRUFRQVXOWDWLRQRUFRUUHVSRQGHQFHDERXW\RXUSURMHFW VKRXOGLQFOXGHWKH&RQVXOWDWLRQ7UDFNLQJ1XPEHULQWKHKHDGHU(OHFWURQLFVXEPLVVLRQLVSUHIHUUHG 1RUWKHUQ/RQJ(DUHG%DWV 1RUWKHUQORQJHDUHGEDWVRFFXUWKURXJKRXW0LQQHVRWDDQG:LVFRQVLQDQGWKHLQIRUPDWLRQEHORZPD\KHOSLQ GHWHUPLQLQJLI\RXUSURMHFWPD\DIIHFWWKHVHVSHFLHV 7KLVVSHFLHVKLEHUQDWHVLQFDYHVRUPLQHVRQO\GXULQJWKHZLQWHU,Q0LQQHVRWDDQG:LVFRQVLQWKHKLEHUQDWLRQ VHDVRQLVFRQVLGHUHGWREH1RYHPEHUWR0DUFK'XULQJWKHDFWLYHVHDVRQ $SULOWR2FWREHU WKH\ URRVWLQIRUHVWDQGZRRGODQGKDELWDWV6XLWDEOHVXPPHUKDELWDWIRUQRUWKHUQORQJHDUHGEDWVFRQVLVWVRIDZLGH YDULHW\RIIRUHVWHGZRRGHGKDELWDWVZKHUHWKH\URRVWIRUDJHDQGWUDYHODQGPD\DOVRLQFOXGHVRPHDGMDFHQW DQGLQWHUVSHUVHGQRQIRUHVWHGKDELWDWVVXFKDVHPHUJHQWZHWODQGVDQGDGMDFHQWHGJHVRIDJULFXOWXUDOILHOGVROG ILHOGVDQGSDVWXUHV7KLVLQFOXGHVIRUHVWVDQGZRRGORWVFRQWDLQLQJSRWHQWLDOURRVWV LHOLYHWUHHVDQGRUVQDJV LQFKHVGEKIRUQRUWKHUQORQJHDUHGEDWWKDWKDYHH[IROLDWLQJEDUNFUDFNVFUHYLFHVDQGRUKROORZV DVZHOO DVOLQHDUIHDWXUHVVXFKDVIHQFHURZVULSDULDQIRUHVWVDQGRWKHUZRRGHGFRUULGRUV7KHVHZRRGHGDUHDVPD\EH GHQVHRUORRVHDJJUHJDWHVRIWUHHVZLWKYDULDEOHDPRXQWVRIFDQRS\FORVXUH,QGLYLGXDOWUHHVPD\EHFRQVLGHUHG VXLWDEOHKDELWDWZKHQWKH\H[KLELWWKHFKDUDFWHULVWLFVRIDSRWHQWLDOURRVWWUHHDQGDUHORFDWHGZLWKLQIHHW PHWHUV RIIRUHVWHGZRRGHGKDELWDW1RUWKHUQORQJHDUHGEDWVKDYHDOVREHHQREVHUYHGURRVWLQJLQKXPDQ PDGHVWUXFWXUHVVXFKDVEXLOGLQJVEDUQVEULGJHVDQGEDWKRXVHVWKHUHIRUHWKHVHVWUXFWXUHVVKRXOGDOVREH FRQVLGHUHGSRWHQWLDOVXPPHUKDELWDWDQGHYDOXDWHGIRUXVHE\EDWV,I\RXUSURMHFWZLOOLPSDFWFDYHVRUPLQHV RUZLOOLQYROYHFOHDULQJIRUHVWRUZRRGODQGKDELWDWFRQWDLQLQJVXLWDEOHURRVWLQJKDELWDWQRUWKHUQORQJHDUHG EDWVFRXOGEHDIIHFWHG ([DPSOHVRIXQVXLWDEOHKDELWDWLQFOXGH Ƒ ,QGLYLGXDOWUHHVWKDWDUHJUHDWHUWKDQIHHWIURPIRUHVWHGRUZRRGHGDUHDV Ƒ 7UHHVIRXQGLQKLJKO\GHYHORSHGXUEDQDUHDV HJVWUHHWWUHHVGRZQWRZQDUHDV Ƒ $SXUHVWDQGRIOHVVWKDQLQFKGEKWUHHVWKDWDUHQRWPL[HGZLWKODUJHUWUHHVDQG Ƒ $PRQRFXOWXUHVWDQGRIVKUXEE\YHJHWDWLRQZLWKQRSRWHQWLDOURRVWWUHHV ,I,3D&UHWXUQVDUHVXOWWKDWQRUWKHUQORQJHDUHGEDWVDUHSRWHQWLDOO\SUHVHQWLQWKHDFWLRQDUHDRIWKHSURSRVHG PD\DIIHFW,) SURMHFWSURMHFWSURSRQHQWVFDQFRQFOXGHWKHSURSRVHGDFWLYLWLHVWKLVVSHFLHVRQHRUPRUHRIWKH IROORZLQJDFWLYLWLHVDUHSURSRVHG Ƒ &OHDULQJRUGLVWXUELQJVXLWDEOHURRVWLQJKDELWDWDVGHILQHGDERYHDWDQ\WLPHRI\HDU Ƒ $Q\DFWLYLW\LQRUQHDUWKHHQWUDQFHWRDFDYHRUPLQH Ƒ 0LQLQJGHHSH[FDYDWLRQRUXQGHUJURXQGZRUNZLWKLQPLOHVRIDFDYHRUPLQH Ƒ &RQVWUXFWLRQRIRQHRUPRUHZLQGWXUELQHVRU Ƒ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µ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µ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µ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Ƒ 2IILFLDO6SHFLHV/LVW Ƒ 86):61DWLRQDO:LOGOLIH5HIXJHVDQG)LVK+DWFKHULHV Ƒ%DOG *ROGHQ(DJOHV Ƒ 0LJUDWRU\%LUGV Ƒ:HWODQGV RI 3URMHFWFRGH 2)),&,$/63(&,(6/,67 7KLVOLVWLVSURYLGHGSXUVXDQWWR6HFWLRQ 3URMHFWFRGH 352-(&76800$5< 3URMHFW&RGH 3URMHFW1DPH0D\R8QERXQG$8$5 3URMHFW7\SH&RPPHUFLDO'HYHORSPHQW 3URMHFW'HVFULSWLRQ,QGXVWULDO5HGHYHORSPHQW3URMHFW 3URMHFW/RFDWLRQ 7KHDSSUR[LPDWHORFDWLRQRIWKHSURMHFWFDQEHYLHZHGLQ*RRJOH0DSVKWWSV ZZZJRRJOHFRPPDSV#] &RXQWLHV2OPVWHG&RXQW\0LQQHVRWD 3URMHFWFRGH (1'$1*(5('63(&,(6$&763(&,(6 7KHUHLVDWRWDORIWKUHDWHQHGHQGDQJHUHGRUFDQGLGDWHVSHFLHVRQWKLVVSHFLHVOLVW 6SHFLHVRQWKLVOLVWVKRXOGEHFRQVLGHUHGLQDQHIIHFWVDQDO\VLVIRU\RXUSURMHFWDQGFRXOGLQFOXGH VSHFLHVWKDWH[LVWLQDQRWKHUJHRJUDSKLFDUHD)RUH[DPSOHFHUWDLQILVKPD\DSSHDURQWKHVSHFLHV OLVWEHFDXVHDSURMHFWFRXOGDIIHFWGRZQVWUHDPVSHFLHV ,3D&GRHVQRWGLVSOD\OLVWHGVSHFLHVRUFULWLFDOKDELWDWVXQGHUWKHVROHMXULVGLFWLRQRI12$$ )LVKHULHVDV86):6GRHVQRWKDYHWKHDXWKRULW\WRVSHDNRQEHKDOIRI12$$DQGWKH 'HSDUWPHQWRI&RPPHUFH 6HHWKH&ULWLFDOKDELWDWVVHFWLRQEHORZIRUWKRVHFULWLFDOKDELWDWVWKDWOLHZKROO\RUSDUWLDOO\ ZLWKLQ\RXUSURMHFWDUHDXQGHUWKLVRIILFH VMXULVGLFWLRQ3OHDVHFRQWDFWWKHGHVLJQDWHG):6RIILFH LI\RXKDYHTXHVWLRQV 12$$)LVKHULHVDOVRNQRZQDVWKH1DWLRQDO0DULQH)LVKHULHV6HUYLFH 10)6 LVDQ RIILFHRIWKH1DWLRQDO2FHDQLFDQG$WPRVSKHULF$GPLQLVWUDWLRQZLWKLQWKH'HSDUWPHQWRI &RPPHUFH 0$00$/6 1$0(67$786 1RUWKHUQ/RQJHDUHG%DW0\RWLVVHSWHQWULRQDOLV(QGDQJHUHG 1RFULWLFDOKDELWDWKDVEHHQGHVLJQDWHGIRUWKLVVSHFLHV 6SHFLHVSURILOHKWWSVHFRVIZVJRYHFSVSHFLHV 7ULFRORUHG%DW3HULP\RWLVVXEIODYXV 3URSRVHG (QGDQJHUHG 1RFULWLFDOKDELWDWKDVEHHQGHVLJQDWHGIRUWKLVVSHFLHV 6SHFLHVSURILOHKWWSVHFRVIZVJRYHFSVSHFLHV %,5'6 1$0(67$786 :KRRSLQJ&UDQH*UXVDPHULFDQD([SHULPHQWDO 3RSXODWLRQ 3RSXODWLRQ86$ $/$5&2)/*$,',/,1,$.</$0,0106021& 102+6&71879$:,:9ZHVWHUQKDOIRI:< 1RQ 1RFULWLFDOKDELWDWKDVEHHQGHVLJQDWHGIRUWKLVVSHFLHV (VVHQWLDO 6SHFLHVSURILOHKWWSVHFRVIZVJRYHFSVSHFLHV 3URMHFWFRGH ,16(&76 1$0(67$786 0RQDUFK%XWWHUIO\'DQDXVSOH[LSSXV&DQGLGDWH 1RFULWLFDOKDELWDWKDVEHHQGHVLJQDWHGIRUWKLVVSHFLHV 6SHFLHVSURILOHKWWSVHFRVIZVJRYHFSVSHFLHV 3URMHFWFRGH )RUJXLGDQFHRQZKHQWRVFKHGXOHDFWLYLWLHVRULPSOHPHQWDYRLGDQFHDQGPLQLPL]DWLRQPHDVXUHV WRUHGXFHLPSDFWVWRPLJUDWRU\ELUGVRQ\RXUOLVWVHHWKH352%$%,/,7<2)35(6(1&( 6800$5<EHORZWRVHHZKHQWKHVHELUGVDUHPRVWOLNHO\WREHSUHVHQWDQGEUHHGLQJLQ\RXU SURMHFWDUHD 1$0(%5((',1*6($621 %DOG(DJOH+DOLDHHWXVOHXFRFHSKDOXV%UHHGV2FWWR $XJ 7KLVLVQRWD%LUGRI&RQVHUYDWLRQ&RQFHUQ %&& LQWKLVDUHDEXWZDUUDQWVDWWHQWLRQ EHFDXVHRIWKH(DJOH$FWRUIRUSRWHQWLDOVXVFHSWLELOLWLHVLQRIIVKRUHDUHDVIURPFHUWDLQ W\SHVRIGHYHORSPHQWRUDFWLYLWLHV KWWSVHFRVIZVJRYHFSVSHFLHV 352%$%,/,7<2)35(6(1&(6800$5< 7KHJUDSKVEHORZSURYLGHRXUEHVWXQGHUVWDQGLQJRIZKHQELUGVRIFRQFHUQDUHPRVWOLNHO\WREH SUHVHQWLQ\RXUSURMHFWDUHD7KLVLQIRUPDWLRQFDQEHXVHGWRWDLORUDQGVFKHGXOH\RXUSURMHFW DFWLYLWLHVWRDYRLGRUPLQLPL]HLPSDFWVWRELUGV3OHDVHPDNHVXUH\RXUHDG6XSSOHPHQWDO ,QIRUPDWLRQRQ0LJUDWRU\%LUGVDQG(DJOHVVSHFLILFDOO\WKH)$4VHFWLRQWLWOHG3URSHU ,QWHUSUHWDWLRQDQG8VHRI<RXU0LJUDWRU\%LUG5HSRUWEHIRUHXVLQJRUDWWHPSWLQJWRLQWHUSUHW WKLVUHSRUW 3UREDELOLW\RI3UHVHQFH *UHHQEDUVWKHELUG VUHODWLYHSUREDELOLW\RISUHVHQFHLQWKHNPJULGFHOO V \RXUSURMHFW RYHUODSVGXULQJWKDWZHHNRIWKH\HDU %UHHGLQJ6HDVRQ <HOORZEDUVOLEHUDOHVWLPDWHRIWKHWLPHIUDPHLQVLGHZKLFKWKHELUGEUHHGVDFURVVLWVHQWLUH UDQJH 6XUYH\(IIRUW 9HUWLFDOEODFNOLQHVWKHQXPEHURIVXUYH\VSHUIRUPHGIRUWKDWVSHFLHVLQWKHNPJULGFHOO V \RXUSURMHFWDUHDRYHUODSV 1R'DWD $ZHHNLVPDUNHGDVKDYLQJQRGDWDLIWKHUHZHUHQRVXUYH\HYHQWVIRUWKDWZHHN SUREDELOLW\RISUHVHQFHEUHHGLQJVHDVRQVXUYH\HIIRUWQRGDWD 63(&,(6-$1)(%0$5$350$<-81-8/$8*6(32&7129'(& %DOG(DJOH 1RQ%&& 9XOQHUDEOH RI 3URMHFWFRGH $GGLWLRQDOLQIRUPDWLRQFDQEHIRXQGXVLQJWKHIROORZLQJOLQNV Ƒ(DJOH0DQDJHPHQWKWWSVZZZIZVJRYSURJUDPHDJOHPDQDJHPHQW Ƒ 0HDVXUHVIRUDYRLGLQJDQGPLQLPL]LQJLPSDFWVWRELUGVKWWSVZZZIZVJRYOLEUDU\ FROOHFWLRQVDYRLGLQJDQGPLQLPL]LQJLQFLGHQWDOWDNHPLJUDWRU\ELUGV Ƒ 1DWLRQZLGHFRQVHUYDWLRQPHDVXUHVIRUELUGVKWWSVZZZIZVJRYVLWHVGHIDXOWILOHV GRFXPHQWVQDWLRQZLGHVWDQGDUGFRQVHUYDWLRQPHDVXUHVSGI Ƒ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Ƒ(DJOH0DQDJHPHQWKWWSVZZZIZVJRYSURJUDPHDJOHPDQDJHPHQW Ƒ 0HDVXUHVIRUDYRLGLQJDQGPLQLPL]LQJLPSDFWVWRELUGVKWWSVZZZIZVJRYOLEUDU\ FROOHFWLRQVDYRLGLQJDQGPLQLPL]LQJLQFLGHQWDOWDNHPLJUDWRU\ELUGV Ƒ 1DWLRQZLGHFRQVHUYDWLRQPHDVXUHVIRUELUGVKWWSVZZZIZVJRYVLWHVGHIDXOWILOHV GRFXPHQWVQDWLRQZLGHVWDQGDUGFRQVHUYDWLRQPHDVXUHVSGI Ƒ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ŵŝƚƚĞĚͲŶĞƌŐLJ^ƚĂƌWŽƌƚĨŽůŝŽDĂŶĂŐĞƌĚŽĞƐŶŽƚĐĂůĐƵůĂƚĞƉĂƌŬŝŶŐƐƚƌƵĐƚƵƌĞĞŶĞƌŐLJƵƐĞKŵŝƚƚĞĚͲŶĞƌŐLJ^ƚĂƌWŽƌƚĨŽůŝŽDĂŶĂŐĞƌĚŽĞƐŶŽƚĐĂůĐƵůĂƚĞƉĂƌŬŝŶŐƐƚƌƵĐƚƵƌĞĞŶĞƌŐLJƵƐĞ ŶĞƌŐLJhƐĞ;^ƵŵŵĂƌLJƐŚĞĞƚͿ džĐůƵĚĞͲƵƌŶƐΘDĐŽŶŶĞůůĂŶĂůLJƐŝƐĂĐĐŽƵŶƚƐĨŽƌ','ĞŵŝƐƐŝŽŶƐ͘džĐůƵĚĞͲƵƌŶƐΘDĐŽŶŶĞůůĂŶĂůLJƐŝƐĂĐĐŽƵŶƚƐĨŽƌ','ĞŵŝƐƐŝŽŶƐ͘ ƐƐƵŵĞůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶĞŶĞƌŐLJƵƐĞ ƐƐƵŵĞDĞĚŝĐĂůKĨĨŝĐĞĞŶĞƌŐLJƵƐĞ ƐƐƵŵĞ<ͲϭϮĞŶĞƌŐLJƵƐĞ ,ŽƐƉŝƚĂů,ŽƐƉŝƚĂů,ŽƐƉŝƚĂů ƐƐƵŵĞŽŵŵĞƌĐŝĂůǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶ ƐƐƵŵĞŶĞŐůŝŐŝďůĞǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶƐƐƵŵĞŶĞŐůŝŐŝďůĞǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶƐƐƵŵĞŶĞŐůŝŐŝďůĞǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶ ƐƐƵŵĞKĨĨŝĐĞǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶ tĂƐƚĞ'ĞŶĞƌĂƚŝŽŶƐŚĞĞƚ ,ŽƐƉŝƚĂů,ŽƐƉŝƚĂů,ŽƐƉŝƚĂů WƌĞǀŝŽƵƐůLJĂƐĐŚŽŽů͕ǀĂĐĂŶƚĨŽƌƚŚĞůĂƐƚϭϬLJĞĂƌƐ͘ƐƐƵŵĞďƵŝůĚŝŶŐŝƐƐƚŝůůŵĂŝŶƚĂŝŶĞĚ͘ >ŽŐŝƐƚŝĐƐĨŽƌŚŽƐƉŝƚĂůŝŶĐůƵĚŝŶŐƉŚĂƌŵĂĐLJ͕ůŝŶĞŶƐ͕ĂŶĚƐƚĞƌŝůĞƉƌŽĐĞƐƐŝŶŐ hƐĞ ,ŽƐƉŝƚĂů͕ƉƌŝŵĂƌLJŝŶͲƉĂƚŝĞŶƚĐůŝŶŝĐƐƉĂĐĞ,ŽƐƉŝƚĂů͕ƉƌŝŵĂƌLJŝŶͲƉĂƚŝĞŶƚĐůŝŶŝĐƐƉĂĐĞ hƚŝůŝƚLJƉůĂŶƚͲĞůĞĐƚƌŝĐŐĞŶĞƌĂƚŝŽŶhƚŝůŝƚLJƉůĂŶƚͲĞůĞĐƚƌŝĐŐĞŶĞƌĂƚŝŽŶ ůĞĐƚƌŝĐĂůĞƋƵŝƉŵĞŶƚ '^&ĞdžĐƵĚĞƐƉĂƌŬŝŶŐ WĂƌŬŝŶŐWĂƌŬŝŶŐ ','Ez>^/^^^hDWd/KE^ Ϯϯϲ͕ϴϰϲϭϮϬ͕ϴϬϮϰϱϬ͕ϬϬϬϭ͕ϰϬϬ͕ϬϬϬϭϭϱ͕ϬϬϬϱ͕ϬϬϬ ϯϯ͕ϳϱϵϵϬ͕ϬϬϬ ͲͲ '^& WƌŽƉŽƐĞĚ^ǁŝƚĐŚŐĞĂƌƵŝůĚŝŶŐ;>ŽƚϮϲͿ WƌŽƉŽƐĞĚtĞƐƚ>ŽŐŝƐƚŝĐƐĞŶƚĞƌ ƵŝůĚŝŶŐ WƌŽƉŽƐĞĚĂŵŽŶ^ŝƚĞ WƌŽƉŽƐĞĚKnjŵƵŶ^ŝƚĞ džŝƐƚŝŶŐĂŵŽŶ^ŝƚĞ džŝƐƚŝŶŐKnjŵƵŶ^ŝƚĞ džŝƐƚŝŶŐ>ŽƵƌĚĞƐ,^ džŝƐƚŝŶŐ>ŽƚϮϲ WƌŽƉŽƐĞĚWhW džŝƐƚŝŶŐWhW SRUWIRULVQRW\HWDYDLODEOH %XVLQHVVWUDYHODQGHPSOR\HHFRPPXWHSDVVHQJHUFDUV (PLVVLRQ6RXUFHVDQG&RQYHUVLRQ)DFWRUV DQG1 (PLVVLRQ6RXUFHVDQG&RQYHUVLRQ)DFWRUV LQWRQQHV0:K&+ (PLVVLRQ)DFWRUVDQG&RQYHUVLRQV *OREDO:DUPLQJ3RWHQWLDO \HDUGDWD KWWSVZZZHSDJRYHJULG 5HIHUHQFHV86(3$ ;FHOSURYLGHV&2 ;FHO(QHUJ\HOHFWULFLW\ &RQYHUVLRQ)DFWRUV (JDVROLQH dŚĞƌŵƐͬŬƚƵ %GLHVHO ŬtŚͬŬƚƵ 1RWHV $&' % EŽͲƵŝůĚϮϬϰϱ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ Ύ^ĞĞΖtĂƐƚĞ'ĞŶĞƌĂƚŝŽŶ͘ΖƐƐƵŵĞƐϮ͕ϱϬϬƐƋĨƚƉĞƌďĞĚ;Ϭ͘ϬϬϬϰďĞĚƐƉĞƌƐƋĨƚͿ͘ hŶŝƚƐ ďĞĚƐ ƐƋĨƚƐƋĨƚƐƋĨƚ ϵϱϭϮϬ͕ϴϬϮ YƵĂŶƚŝƚLJ ͲͲ ůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶ WƌŽũĞĐƚŽŵƉŽŶĞŶƚƐ DĞĚŝĐĂůKĨĨŝĐĞ hƐĞ ,ŽƐƉŝƚĂůΎ ^ĐŚŽŽů hƐĞƐ͗ ϯϮ͘ϲй Ϭ͘Ϭйϭ͘ϴйϭϬϬй ϯϬ͘ϯйϯϱ͘ϯй WĞƌĐĞŶƚŽĨ dŽƚĂů',' ŽŶŝŶ Ɖ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĐůŝŵĂƚĞůĞĂĚĞƌƐŚŝƉͬƐĐŽƉĞͲϭͲĂŶĚͲƐĐŽƉĞͲϮͲ ŽŶŝŶĚŝƌĞĐƚůLJŝŵƉĂĐƚƐŝŶŝƚƐǀĂůƵĞĐŚĂŝŶ͘^ĐŽƉĞϯ ĞŵŝƐƐŝŽŶƐŝŶĐůƵĚĞĂůůƐŽƵƌĐĞƐŶŽƚǁŝƚŚŝŶĂŶŽƌŐĂŶŝnjĂƚŝŽŶ͛ƐƐĐŽƉĞϭĂŶĚϮďŽƵŶĚĂƌLJ͘dŚĞƐĐŽƉĞϯĞŵŝƐƐŝŽŶƐĨŽƌŽŶĞŽƌŐĂŶŝnjĂƚŝŽŶĂƌĞƚŚĞƐĐŽƉĞϭĂŶĚϮĞŵŝƐƐŝŽŶƐŽĨĂŶŽƚŚĞƌŽƌŐĂŶŝnjĂƚŝŽŶ͘^ĐŽƉĞϯ ĞŵŝƐƐŝŽŶƐ͕ĂůƐŽƌĞĨĞƌƌĞĚƚŽĂƐǀĂůƵĞĐŚĂŝŶĞŵŝƐƐŝŽŶƐ͕ŽĨƚĞŶƌĞƉƌĞƐĞŶƚƚŚĞŵĂũŽƌŝƚLJŽĨĂŶŽƌŐĂŶŝnjĂƚŝŽŶ͛ƐƚŽƚĂů','ĞŵŝƐƐŝŽŶƐ͘͟;W͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĐůŝŵĂƚĞůĞĂĚĞƌƐŚŝƉͬƐĐŽƉĞͲϯͲŝŶǀĞŶƚŽƌLJͲ Ɵ ŽŶ;Ğ͘Ő͕͘ĞŵŝƐƐŝŽŶƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĨƵĞůĐŽŵďƵƐ ',';ŬŐͬƐƋ͘ ϲ͘ϰϲϮ͘ϬϬ Ϭ͘ϯϲ ϴ͘ϯϳϭ͘ϯϳ ϲ͘Ϭϭ ϵ͘ϱϲ ϳ͘Ϭϭϭϵ͘ϴ ͲͲͲͲ Ĩƚ͘Ϳ Ϯ͕Ϯϲϰ ϳ͕Ϭϵϰ Ϯ͕ϯϭϭ Ϯ͕ϭϰϴϬ͘ϰϮ͕ϱϬϱ ϭ͕ϵϴϮϭϲϲ ϭϮϵ Ϯϰϭ ;ƚŽŶŶĞƐͿ ͲͲ ',' ͲͲ ϭϮϭϰ͕ϯϯϭsDdϬ͘ϰϰϭ͘ϱϴϲ͘ϵϴϳ͘ϲϰ Ϭ͘ϯϱϬ͘ϮϲϬ͘ϭϲϭϬ͘ϳϰ ϯϯ͘ϯϳ ϭϵ͘ϭϭ ŵŝƐƐŝŽŶ &ĂĐƚŽƌƐ Ɵ ŽŶ͕ďƵƚƚŚĂƚƚŚĞŽƌŐĂŶŝnjĂ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞŶĞƌŐLJƐƚĂƌ͘ŐŽǀͬďƵŝůĚŝŶŐƐͬƌĞƐŽƵƌĐĞƐͺĂƵĚŝĞŶĐĞͬƐĞƌǀŝĐĞͺƉƌŽĚƵĐƚͺƉƌŽǀŝĚĞƌƐͬĐŽŵŵĞƌĐŝĂůͺŶĞǁͺĐŽŶƐƚƌƵĐƚŝŽŶͬƚĂƌŐĞƚͺĨŝŶĚĞƌ W^ŝŵƉůŝĨŝĞĚ','ŵŝƐƐŝŽŶƐĂůĐƵůĂƚŽƌ;ΗƚŚĞĂůĐƵůĂƚŽƌΗͿ͕ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĞŶĞƌŐLJͬŐƌĞĞŶŚŽƵƐĞͲŐĂƐͲĞƋƵŝǀĂůĞŶĐŝĞƐͲĐĂůĐƵůĂƚŽƌ ^ŝƚĞŶĞƌŐLJhƐĞ /ŶĚĞdž;ŬƚƵͬƐƋ͘ Ɵ ϯϰ͘ϴϭϭϯ͘ϴϮϯ͘ϴ ϭϱϳ͘ϵϮϱ͘ϵϭϱ͘ϱ ϲϱ͘ϮϮϲ͘ϭ ^ĐŽƉĞϭ͗͞^ĐŽƉĞϭĞŵŝƐƐŝŽŶƐĂƌĞĚŝƌĞĐƚŐƌĞĞŶŚŽƵƐĞ;','ͿĞŵŝƐƐŝŽŶƐƚŚĂƚŽĐĐƵƌĨƌŽŵƐŽƵƌĐĞƐƚŚĂƚĂƌĞĐŽŶƚƌŽůůĞĚŽƌŽǁŶĞĚďLJĂŶŽƌŐĂŶŝnjĂ Ʃ ^ĐŽƉĞϮ͗͞^ĐŽƉĞϮĞŵŝƐƐŝŽŶƐĂƌĞŝŶĚŝƌĞĐƚ','ĞŵŝƐƐŝŽŶƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƉƵƌĐŚĂƐĞŽĨĞůĞĐƚƌŝĐŝƚLJ͕ƐƚĞĂŵ͕ŚĞĂƚ͕ŽƌĐŽŽůŝŶŐ͘͟;W͕Ś Ĩƚ͘Ϳ ƚŽŶƐŽĨǁĂƐƚĞ Ɵ ŶŐŽƌŐĂŶŝnjĂ ϭƚŚĞƌŵƐ ŐĂůůŽŶƐ ďŽŝůĞƌƐ͕ĨƵƌŶĂĐĞƐ͕ǀĞŚŝĐůĞƐͿ͘͟;W͕ŚƚƚƉ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĐůŝŵĂƚĞůĞĂĚĞƌƐŚŝƉͬƐĐŽƉĞͲϭͲĂŶĚͲƐĐŽƉĞͲϮͲŝŶǀĞŶƚŽƌLJͲŐƵŝĚĂŶĐĞͿ ^ŽƵƌĐĞ;ŝƉŽĚĞ͗ϱϱϵϬϮͿ͗h^WŶĞƌŐLJ^ƚĂƌWŽƌƚĨŽůŝŽDĂŶĂŐĞƌdĂƌŐĞƚ&ŝŶĚĞƌ͘ZĞĨĞƌƚŽŶĞƌŐLJ&ŝŶĚĞƌƐŚĞĞƚ͘ ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ ŵŽƵŶƚhŶŝƚƐ ŬtŚ Ɵ ĞƐĨƌŽŵĂƐƐĞƚƐŶŽƚŽǁŶĞĚŽƌĐŽŶƚƌŽůůĞĚďLJƚŚĞƌĞƉŽƌ Ϯϯϲ͕ϴϰϲ ϯϱϳ͕ϲϰϴϰϬ Ϯϯϲ͕ϴϰϲ ϯϱϳ͕ϲϰϴϯϵϬ ϭϮϬ͕ϴϬϮϭϮϬ͕ϴϬϮ ͲͲͲͲ ZĞĨĞƌƚŽƚŚĞƐŚĞĞƚΗDŽďŝůĞƋƵŝƉŵĞŶƚ͘ΗsDdсǀĞƌĂŐĞĂŝůLJsĞŚŝĐůĞDŝůĞƐdƌĂǀĞůĞĚ͘ EŽƚĞƐΎΎ ^ŽƵƌĐĞ ĂƚĂϭΘϮ ϯϯϯϯϯϯϯϯϮ EŽͲƵŝůĚϮϬϰϱ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ^ĐŽƉĞΎ ϭϮ ϯ &ŽƌĂŶĞdžƉůĂŶĂƚŝŽŶŽĨŵŝƐƐŝŽŶƐƐĐŽƉĞƐ͕ƉůĞĂƐĞƌĞĨĞƌĞŶĐĞƚŚĞĨŽůůŽǁŝŶŐ͗ hƐĞƐĂŶĚƉƌŽũĞĐƚĂǀĞƌĂŐĞĚĂŝůLJǀĞŚŝĐůĞŵŝůĞƐƚƌĂǀĞůĞĚ;sDdͿ͗ ŽŵďƵƐƚŝŽŶ͕ƐƚĂƚŝŽŶĂƌLJĞƋƵŝƉŵĞŶƚ͕ŶĂƚƵƌĂůŐĂƐ;ƚŚĞƌŵƐͬƐƋ͘ ŽŵďƵƐƚŝŽŶĂƌĞĂ;ĚŝĞƐĞů͕ďĂĐŬͲƵƉŐĞŶĞƌĂƚŽƌƐ͕','ŬŐͬŐĂů͘Ϳ KƉĞƌĂƚŝŽŶĂůĞŵŝƐƐŝŽŶƐ͕ŵŽďŝůĞĞƋƵŝƉŵĞŶƚ͕ĂĨƚĞƌƉƌŽũĞĐƚŝƐ Ɵ ǀŝ Ɵ ^ĐŽƉĞϯ͗͞^ĐŽƉĞϯĞŵŝƐƐŝŽŶƐĂƌĞƚŚĞƌĞƐƵůƚŽĨĂĐ KĨĨͲƐŝƚĞĞůĞĐƚƌŝĐŝƚLJ͕yĐĞůϮϬϮϭ;','ŬŐͬƐƋ͘Ĩƚ͘Ϳ ŵŝƐƐŝŽŶ^ŽƵƌĐĞ ůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶ KĨĨͲƐŝƚĞǁĂƐƚĞŵĂŶĂŐĞŵĞŶƚ dŽƚĂůĞŵŝƐƐŝŽŶƐ;ƚŽŶŶĞƐͿ DĞĚŝĐĂůKĨĨŝĐĞDĞĚŝĐĂůKĨĨŝĐĞ ΎΎĂƚĂ^ŽƵƌĐĞEŽƚĞƐ͗ ŝŶǀĞŶƚŽƌLJͲŐƵŝĚĂŶĐĞͿ ^ƵďƚŽƚĂů^ƵďƚŽƚĂů ,ŽƐƉŝƚĂů,ŽƐƉŝƚĂů ^ĐŚŽŽů^ĐŚŽŽů ŽƉĞƌĂƚŝŽŶĂů ŐƵŝĚĂŶĐĞͿ Ύ^ĐŽƉĞ͗ Ĩƚͬ͘LJƌ͘Ϳ͗ ϭϮϯ ͻͻͻ ƉĞƌƐƋ͘Ĩƚ͘ƉĞƌ ^ŽƵƌĐĞ͗dĂďůĞϮϭ͕ΗdĂƌŐĞƚĞĚ^ƚĂƚĞǁŝĚĞtĂƐƚĞŚĂƌĂĐƚĞƌŝnjĂƚŝŽŶ^ƚƵĚLJ͗tĂƐƚĞŝƐƉŽƐĂůĂŶĚŝǀĞƌƐŝŽŶ&ŝŶĚŝŶŐƐĨŽƌ^ĞůĞĐƚĞĚ/ŶĚƵƐƚƌLJ'ƌŽƵƉƐ͕ϮϬϬϲ͘ DŽĚĞů;tZDͿ͕KƌŐĂŶŝĐDĂƚĞƌŝĂůƐŚĂƉƚĞƌƐ͕ΗdžŚŝďŝƚϭͲϭϬ͕h͘^͘ŶǀŝƌŽŶŵĞŶƚĂůWƌŽƚĞĐƚŝŽŶŐĞŶĐLJKĨĨŝĐĞŽĨZĞƐŽƵƌĐĞŽŶƐĞƌǀĂƚŝŽŶĂŶĚZĞĐŽǀĞƌLJ͕ ^ŽƵƌĐĞĨŽƌĞŵŝƐƐŝŽŶƐĨƌŽŵƚŚĞ,ĞŶŶĞƉŝŶŶĞƌŐLJZĞĐŽǀĞƌLJĞŶƚĞƌ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƉĐĂ͘ƐƚĂƚĞ͘ŵŶ͘ƵƐͬĂŝƌͬƉĞƌŵŝƚƚĞĚͲĨĂĐŝůŝƚLJͲĂŝƌͲĞŵŝƐƐŝŽŶƐͲĚĂƚĂ͘^ŽƵƌĐĞ ϭ͘Ϭ ϭ͘ϭϬ͘ϴ tĂƐƚĞ;ŬŐ ^ŽƵƌĐĞĨŽƌĞŵŝƐƐŝŽŶĨĂĐƚŽƌĨŽƌůĂŶĚĨŝůůĞĚǁĂƐƚĞ͗ΗŽĐƵŵĞŶƚĂƚŝŽŶĨŽƌ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶĂŶĚŶĞƌŐLJ&ĂĐƚŽƌƐhƐĞĚŝŶƚŚĞtĂƐƚĞZĞĚƵĐƚŝŽŶ ^ŽƵƌĐĞĨŽƌĞƐƚŝŵĂƚĞŽĨŐƌŽƐƐƐƋƵĂƌĞĨĞĞƚ;'^&ͿƉĞƌƐƚĂĨĨĞĚŚŽƐƉŝƚĂůďĞĚ;Ϯ͕ϱϬϬ'^&ͬďĞĚͿ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ďĚĐŶĞƚǁŽƌŬ͘ĐŽŵͬŽǀĞƌƐŝnjĞĚͲŚĞĂůƚŚĐĂƌĞͲ Ͳ ĨŽƌƚŽŶƐƉƌŽĐĞƐƐĞĚďLJƚŚĞ,Z͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƉĐĂ͘ƐƚĂƚĞ͘ŵŶ͘ƵƐͬǁĂƐƚĞͬƌĞƉŽƌƚͲϮϬϭϵͲƐĐŽƌĞͲƉƌŽŐƌĂŵƐ͘ƐƐƵŵĞKůŵƐƚĞĚŽƵŶƚLJtdŚĂƐƐŝŵŝůĂƌ LJƌ͘Ϳ &ĞďƌƵĂƌLJϮϬϭϲ͘ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬǁĂƌŵͬĚŽĐƵŵĞŶƚĂƚŝŽŶͲĐŚĂƉƚĞƌƐͲŐƌĞĞŶŚŽƵƐĞͲŐĂƐͲĞŵŝƐƐŝŽŶͲĞŶĞƌŐLJͲĂŶĚͲĞĐŽŶŽŵŝĐͲĨĂĐƚŽƌƐͲƵƐĞĚͲǁĂƐƚĞ ϯϵϬ ƐƋ͘Ĩƚ͘ϭϬϮ͕ϰϰϬƚŽŶƐϬ͘ϱϰϰ ďĞĚƐϮϱϭ͕ϮϭϵƐƋ͘Ĩƚ͘ϯϱϯ͕ϲϱϵƚŽŶƐϬ͘ϱϮϭϮϱ^ƵďƚŽƚĂůĞŵŝƐƐŝŽŶƐ;ƚŽŶŶĞƐͿϭϮϵ ŵŽƵŶƚƐ ƐƋ͘Ĩƚ͘Ͳ tĂƐƚĞ ^ŽƵƌĐĞĨŽƌŚŽƐƉŝƚĂůǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶƉĞƌƐƚĂĨĨĞĚďĞĚ;ϭϲůďͬďĞĚͬĚĂLJсϳ͘ϮϲŬŐͬďĞĚͬĚĂLJͿ͖ŽŵŵĞƌĐŝĂů;Ϭ͘ϬϬϲůďͬƐƋĨƚͬĚĂLJͿ͗ ŵŝƐƐŝŽŶ&ĂĐƚŽƌ ;ƚŽŶŶĞƐͬƚŽŶͿ ŚƚƚƉƐ͗ͬͬƉƵďůŝĐ͘ƚĂďůĞĂƵ͘ĐŽŵͬĂƉƉͬƉƌŽĨŝůĞͬŵƉĐĂ͘ĚĂƚĂ͘ƐĞƌǀŝĐĞƐͬǀŝnjͬ^KZKǀĞƌǀŝĞǁͬ^KZKǀĞƌǀŝĞǁ ^ŽƵƌĐĞ͗ΗϮϬϮϮ^KZZWKZd͕ΗKůŵƐƚĞĚŽƵŶƚLJϮϬϮϮǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶ͕DWĂƚĂ^ĞƌǀŝĐĞƐ͕ ĂƚĂ^ŽƵƌĐĞŵŽƵŶƚhŶŝƚƐ ,ŽƐƉŝƚĂů;ŬŐΛϳ͘ϮϲŬŐͬďĞĚͬĚĂLJͿϳ͕ϴϵϱ>ĂŶĚĨŝůůĞĚǁĂƐƚĞ͕ϭ͘ϴй;ƚŽŶƐͿĂŶĚĞŵŝƐƐŝŽŶĨĂĐƚŽƌϰ͕ϱ͕ϲϳtĂƐƚĞƚŽĞŶĞƌŐLJ͕ϲϭ͘ϵй;ƚŽŶƐͿĂŶĚĞŵŝƐƐŝŽŶĨĂĐƚŽƌϰ͕ϱ͕ϲϮϰϭ ^ƵďƚŽƚĂůƐ;ŬŐͿϯϱϳ͕ϲϰϴ KĨĨŝĐĞƐ;ŬŐΛϬ͘ϴϰϴŬŐͬƐƋ͘Ĩƚͬ͘LJƌ͘ͿϮϭϮϬ͕ϴϬϮ ŽŵŵĞƌĐŝĂů;ŬŐΛϬ͘ϵϵϯŬŐͬƐƋ͘Ĩƚͬ͘LJƌ͘ͿϴͲ EŽͲƵŝůĚϮϬϰϱ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ŚƚƚƉƐ͗ͬͬǁǁǁϮ͘ĐĂůƌĞĐLJĐůĞ͘ĐĂ͘ŐŽǀͬtĂƐƚĞŚĂƌĂĐƚĞƌŝnjĂƚŝŽŶͬ'ĞŶĞƌĂůͬZĂƚĞƐ ŚƚƚƉƐ͗ͬͬǁǁǁϮ͘ĐĂůƌĞĐLJĐůĞ͘ĐĂ͘ŐŽǀͬWƵďůŝĐĂƚŝŽŶƐͬĞƚĂŝůƐͬϭϭϴϰ ŚŽǁͲĚŝĚͲǁĞͲŐĞƚͲŚĞƌĞͲĂŶĚͲŚŽǁͲĚŽͲǁĞͲƌŝŐŚƚͲƐŝnjĞ ^ŽůŝĚtĂƐƚĞ'ĞŶĞƌĂƚŝŽŶ ĞŵŝƐƐŝŽŶĨĂĐƚŽƌ͘ tĂƐƚĞ'ĞŶĞƌĂƚŝŽŶ tĂƐƚĞ;ƚŽŶƐͿ EŽƚĞƐ͗ hƐĞƐ͗ ϰ ϱϲϳϴ Ϯ EŽͲƵŝůĚϮϬϰϱ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ĂĐŬƵƉ'ĞŶĞƌĂƚŽƌ&ƵĞůŽŶƐƵŵƉƚŝŽŶ ŝĞƐĞů 'ĞŶĞƌĂƚŽƌ ŽŶƐƵŵƉƚŝŽŶ ƵŝůĚŝŶŐ ^ŝnjĞ',';ŬŐͿ ^ŝnjĞ;ŬtͿ ;ŐĂů͘Ϳ ůůhƐĞƐ;ƐƋ͘Ĩƚ͘Ϳϯϱϳ͕ϲϰϴϭ͕ϴϯϴϰϬϰϮϲ dŽƚĂůϰϬϰϮϲ EŽƚĞƐ͗ ĂĐŬƵƉŐĞŶĞƌĂƚŽƌ͗ƐƐƵŵĞϱϬŬtнϱtƉĞƌƐƋ͘Ĩƚ͘;ƐŽƵƌĐĞ͗ ϭ ŚƚƚƉƐ͗ͬͬǁŽŽĚƐƚŽĐŬƉŽǁĞƌ͘ĐŽŵͬďůŽŐͬŚŽǁͲƚŽͲƐŝnjĞͲĂͲŐĞŶĞƌĂƚŽƌͲĨŽƌͲĐŽŵŵĞƌĐŝĂůͲďƵŝůĚŝŶŐͬͿ͘ ŝĞƐĞůĐŽŶƐƵŵƉƚŝŽŶƉĞƌŚŽƵƌĨƌŽŵĐŚĂƌƚďĞůŽǁ͘DŽŶƚŚůLJƚĞƐƚŝŶŐĨŽƌϯϬŵŝŶƵƚĞƐ;ƐŽƵƌĐĞ͗ Ϯ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŚĞĂůƚŚ͘ƐƚĂƚĞ͘ŵŶ͘ƵƐͬĨĂĐŝůŝƚŝĞƐͬƌĞŐƵůĂƚŝŽŶͬĞŶŐŝŶĞĞƌŝŶŐͬĚŽĐƐͬůƐĐŐĞŶƐĞƚƐ͘ƉĚĨͿ ^ŽƵƌĐĞ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƵƐƉĞŐůŽďĂů͘ĐŽŵͬƉĂŐĞƐͬƌĞƐŽƵƌĐĞƐ EŽͲƵŝůĚϮϬϰϱ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ǀĞƌĂŐĞĚĂŝůLJǀĞŚŝĐůĞŵŝůĞƐƚƌĂǀĞůĞĚ;sDdͿŝŶƚŚĞǀŝĐŝŶŝƚLJŽĨƚŚĞƐŝƚĞ ĂƚĞŐŽƌLJ sDd',';ŬŐͿ sDdϭϰ͕ϯϯϭϮ͕ϯϭϬ͕ϲϳϯ ϭϰ͕ϯϯϭ ϭ͕ϴϰϭϭ͕ϭϯϯϯ͕Ϯϭϰϯ͕ϯϮϯ ϮϳϬϮϵϮϭϯϴϭ͕ϲϱϱϵϳϰϲϳϭ ϴϭϵϮ sDd ;ƚŽƚĂůͿ sDd ϭϬϱϯ͘ϱϴϰϱϭϯϮϭϰ͘ϱ ŝƌĞĐƚŝŽŶϭϯϯϮϮ͘ϱ dKd> ϯϯϮ͘ϰϰϴϲ͘ϲϭϭϲ͘ϲϭϰϵ͘ϬϭϰϮ͘ϲϴϵϵ͘ϭϳϱϲ͘ϭϰϯϱ͘ϳϱϯϴ͘ϯϯϮϵ͘ϭϯϰϮ͘ϰϱϲϳ͘ϭϱϲϱ͘ϰ ϭϱϮ͘ϵϳϴϳ͘ϱ ϳϬ͘Ϭϲϴ͘ϭ Ϭ͘ϲϭ͘ϭ dƌŝƉƐϵ ϭϬϰϬϲ ĂŝůLJϱϳϳϯ dƌŝƉƐϴ ĂŝůLJϱϳϭϬ ϴϲϮϱϵϰϴϱ dƌŝƉƐϳ ϭϯϵϬϬ ĂŝůLJϮϵϴϳϯϱϱϰϮϬϱϲϮϵϯϰϴϮϱϮ dƌŝƉƐϲ ϭϬϰϵϭ ϮϵϱϴϯϱϰϭϮϭϮϴϮϲϰϭ ĂŝůLJ dƌŝƉƐϱ ϭϬϰϰϯ ϯϭϳϰϯϬϯϮϮϲϱϮϱϱϱϭϯϯϬϳϴϱϬϭ ĂŝůLJϮϭϱϵϲϭϲϵϯϱϮϱ dƌŝƉƐϰ ϭϬϰϮϳ ĂŝůLJϯϯϲϯϰϳϱϭϯϬϵϮϮϰϬϳϮϵϬϰϱϱϱϭϮϵϰϲϮϵϵϲϴϰϴϳ ϯϮϮϵϲϭϲϵ dƌŝƉƐϯ ϭϬϵϬϬ ĂŝůLJϯϬϲϮϰϰϲϯϮϯϴϴϱϬϳϭϱϭϳϰϮϭϬϬϮϬϳϲϮϵϵϬϮϵϵϴϳϱϬϬ ϯϱϬϵϯϯϯϵϮϬϱϵ dƌŝƉƐϮ ϰϲϮϭϯϱϳϰϭϵϰϭϭϵϳϮϮϳϱϰϮϰϲϮϮϬϯϰϮϰϯϯϮϭϯϲϱϮϯϴϮϲϳϰϮϴϯϳϮϱϬϮϳϯϱϴϮϴϯϬ ĂŝůLJϭϳϲϱϮϲϰϱϮϱϳϱ dƌŝƉƐϭ ϭϱϲϭϮϰϭϰϰϲϬϲϯϰϲϮϮϮϱϲϮϬϰϰϮϭϴϬϮϳϳϯϮϰϳϳϮϬϲϴϮϰϳϭϱϲϯϬϮϲϳϰϮϴϯϰϮϳϭϳϮϰϳϮϳϯϱϰ ĂŝůLJϮϮϯϵϮϵϬϱϲϴϵϱ ϭϳϯϬ ŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮ ŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮ WĂƌƚŝƚŝŽŶƐŝƌĞĐƚŝŽŶ EŽͲƵŝůĚŽŶĚŝƚŝŽŶƐͲsDdĂůĐƵůĂƚŝŽŶ ϰϮϮϭϳϯϴϭ ϵϱϱϵ >ĞŶŐƚŚ;ŵŝͿ ^ĞŐŵĞŶƚ Ϭ͘ϭϯϲϬ͘ϬϯϯϬ͘ϬϳϭϬ͘ϬϯϭϬ͘ϮϰϲϬ͘ϭϴϲϬ͘ϭϯϯϬ͘Ϭϯϴ Ϭ͘ϮϬϱϬ͘ϭϵϱϬ͘ϯϲϵϬ͘ϯϲϵ >ĞŶŐƚŚ;ĨƚͿ ^ĞŐŵĞŶƚ ϰd,sEhϭϵϱϬ ϭϯϬϬϭ^d^dZd^tϭϬϴϬϭϬϯϬϭϵϱϬ ϳd,sEhϳϬϬ ϳϮϬϮE^dZdEtϭϳϱϭ^d^dZdEtͲ^dϭϲϱϵϴϬϮEsEhϮϬϬ ϯϳϱ ϭ^d^dZdEtͲt^d EdZ^dZdt ϯZ^dZdEt ϮE^dZd^t ϲd,sEhϯZsEh ^ĞŐŵĞŶƚ hŶŝƚƐ Ύ^ĞĞΖtĂƐƚĞ'ĞŶĞƌĂƚŝŽŶ͘ΖƐƐƵŵĞƐϮ͕ϱϬϬƐƋĨƚƉĞƌďĞĚ;Ϭ͘ϬϬϬϰďĞĚƐƉĞƌƐƋĨƚͿ͘ &ƵůůͲƵŝůĚ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ďĞĚƐ ƐƋĨƚƐƋĨƚƐƋĨƚ ϭϭϱ͕ϬϬϬ ϳϰϬϱ͕ϬϬϬ YƵĂŶƚŝƚLJ Ͳ ůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶ WƌŽũĞĐƚŽŵƉŽŶĞŶƚƐ DĞĚŝĐĂůKĨĨŝĐĞ hƐĞ ,ŽƐƉŝƚĂůΎ ^ĐŚŽŽů hƐĞƐ͗ ϱ͘ϮйϬ͘ϬйϮ͘ϭйϭϬϬй ϰϮ͘ϴйϰϵ͘ϵй WĞƌĐĞŶƚŽĨ dŽƚĂů',' ŽŶŝŶ Ɖ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĐůŝŵĂƚĞůĞĂĚĞƌƐŚŝƉͬƐĐŽƉĞͲϭͲĂŶĚͲƐĐŽƉĞͲϮͲ ŽŶŝŶĚŝƌĞĐƚůLJŝŵƉĂĐƚƐŝŶŝƚƐǀĂůƵĞĐŚĂŝŶ͘^ĐŽƉĞϯ ĞŵŝƐƐŝŽŶƐŝŶĐůƵĚĞĂůůƐŽƵƌĐĞƐŶŽƚǁŝƚŚŝŶĂŶŽƌŐĂŶŝnjĂƚŝŽŶ͛ƐƐĐŽƉĞϭĂŶĚϮďŽƵŶĚĂƌLJ͘dŚĞƐĐŽƉĞϯĞŵŝƐƐŝŽŶƐĨŽƌŽŶĞŽƌŐĂŶŝnjĂƚŝŽŶĂƌĞƚŚĞƐĐŽƉĞϭĂŶĚϮĞŵŝƐƐŝŽŶƐŽĨĂŶŽƚŚĞƌŽƌŐĂŶŝnjĂƚŝŽŶ͘^ĐŽƉĞϯ ĞŵŝƐƐŝŽŶƐ͕ĂůƐŽƌĞĨĞƌƌĞĚƚŽĂƐǀĂůƵĞĐŚĂŝŶĞŵŝƐƐŝŽŶƐ͕ŽĨƚĞŶƌĞƉƌĞƐĞŶƚƚŚĞŵĂũŽƌŝƚLJŽĨĂŶŽƌŐĂŶŝnjĂƚŝŽŶ͛ƐƚŽƚĂů','ĞŵŝƐƐŝŽŶƐ͘͟;W͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĐůŝŵĂƚĞůĞĂĚĞƌƐŚŝƉͬƐĐŽƉĞͲϯͲŝŶǀĞŶƚŽƌLJͲ Ɵ ŽŶ;Ğ͘Ő͕͘ĞŵŝƐƐŝŽŶƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĨƵĞůĐŽŵďƵƐ ',';ŬŐͬƐƋ͘ Ϭ͘ϵϴ ϳ͘ϵϳϵ͘ϯϬϭϴ͘ϲ ϴ͘ϯϳϭ͘ϴϱϵ͘ϱϲϱ͘ϰϳϮ͘ϭϵ Ϭ͘ϯϵ Ϭ͘ϴϮ ͲͲ Ĩƚ͘Ϳ ϭ͕ϵϮϰ ϭϱ͕ϰϴϰϰ ϭϱ͕ϳϬϬϮ ϭϳ͕ϲϴϰϲϯϬ ϭϴ͕ϯϮϰ ϳϱϵϯϲ͕ϳϬϵ ϮϭϮϭϭ ;ƚŽŶŶĞƐͿ Ͳ ',' Ͳ ϭϮϭϭ͕ϵϯϮsDdϬ͘ϰϰϭ͘ϱϴϲ͘ϵϴϳ͘ϲϰ Ϭ͘ϯϱϬ͘ϮϲϬ͘ϭϲϭϬ͘ϳϰ ϯϯ͘ϯϳ ϭϵ͘ϭϭ ŵŝƐƐŝŽŶ &ĂĐƚŽƌƐ Ɵ ŽŶ͕ďƵƚƚŚĂƚƚŚĞŽƌŐĂŶŝnjĂ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞŶĞƌŐLJƐƚĂƌ͘ŐŽǀͬďƵŝůĚŝŶŐƐͬƌĞƐŽƵƌĐĞƐͺĂƵĚŝĞŶĐĞͬƐĞƌǀŝĐĞͺƉƌŽĚƵĐƚͺƉƌŽǀŝĚĞƌƐͬĐŽŵŵĞƌĐŝĂůͺŶĞǁͺĐŽŶƐƚƌƵĐƚŝŽŶͬƚĂƌŐĞƚͺĨŝŶĚĞƌ W^ŝŵƉůŝĨŝĞĚ','ŵŝƐƐŝŽŶƐĂůĐƵůĂƚŽƌ;ΗƚŚĞĂůĐƵůĂƚŽƌΗͿ͕ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĞŶĞƌŐLJͬŐƌĞĞŶŚŽƵƐĞͲŐĂƐͲĞƋƵŝǀĂůĞŶĐŝĞƐͲĐĂůĐƵůĂƚŽƌ ^ŝƚĞŶĞƌŐLJhƐĞ /ŶĚĞdž;ŬƚƵͬƐƋ͘ Ɵ ϯϰ͘ϴϭϭϯ͘ϴϮϯ͘ϴ ϭϱϳ͘ϵϮϱ͘ϵϭϱ͘ϱ ϲϱ͘ϮϮϲ͘ϭ ^ĐŽƉĞϭ͗͞^ĐŽƉĞϭĞŵŝƐƐŝŽŶƐĂƌĞĚŝƌĞĐƚŐƌĞĞŶŚŽƵƐĞ;','ͿĞŵŝƐƐŝŽŶƐƚŚĂƚŽĐĐƵƌĨƌŽŵƐŽƵƌĐĞƐƚŚĂƚĂƌĞĐŽŶƚƌŽůůĞĚŽƌŽǁŶĞĚďLJĂŶŽƌŐĂŶŝnjĂ Ʃ ^ĐŽƉĞϮ͗͞^ĐŽƉĞϮĞŵŝƐƐŝŽŶƐĂƌĞŝŶĚŝƌĞĐƚ','ĞŵŝƐƐŝŽŶƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƉƵƌĐŚĂƐĞŽĨĞůĞĐƚƌŝĐŝƚLJ͕ƐƚĞĂŵ͕ŚĞĂƚ͕ŽƌĐŽŽůŝŶŐ͘͟;W͕Ś Ĩƚ͘Ϳ ƚŽŶƐŽĨǁĂƐƚĞ Ɵ ŶŐŽƌŐĂŶŝnjĂ ϭƚŚĞƌŵƐ ŐĂůůŽŶƐ ďŽŝůĞƌƐ͕ĨƵƌŶĂĐĞƐ͕ǀĞŚŝĐůĞƐͿ͘͟;W͕ŚƚƚƉ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬĐůŝŵĂƚĞůĞĂĚĞƌƐŚŝƉͬƐĐŽƉĞͲϭͲĂŶĚͲƐĐŽƉĞͲϮͲŝŶǀĞŶƚŽƌLJͲŐƵŝĚĂŶĐĞͿ ^ŽƵƌĐĞ;ŝƉŽĚĞ͗ϱϱϵϬϮͿ͗h^WŶĞƌŐLJ^ƚĂƌWŽƌƚĨŽůŝŽDĂŶĂŐĞƌdĂƌŐĞƚ&ŝŶĚĞƌ͘ZĞĨĞƌƚŽŶĞƌŐLJ&ŝŶĚĞƌƐŚĞĞƚ͘ ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ƐƋ͘Ĩƚ͘ ŵŽƵŶƚhŶŝƚƐ ŬtŚ Ɵ ĞƐĨƌŽŵĂƐƐĞƚƐŶŽƚŽǁŶĞĚŽƌĐŽŶƚƌŽůůĞĚďLJƚŚĞƌĞƉŽƌ ϭ͕ϴϱϬ͕ϬϬϬϭ͕ϴϱϬ͕ϬϬϬ ϭϭϱ͕ϬϬϬϱ͕ϬϬϬ ϭ͕ϵϳϬ͕ϬϬϬ ϭϭϱ͕ϬϬϬϱ͕ϬϬϬ ϭ͕ϵϳϬ͕ϬϬϬ Ϯϭϰ Ϯ͕Ϯϴϵ ͲͲ ZĞĨĞƌƚŽƚŚĞƐŚĞĞƚΗDŽďŝůĞƋƵŝƉŵĞŶƚ͘ΗsDdсǀĞƌĂŐĞĂŝůLJsĞŚŝĐůĞDŝůĞƐdƌĂǀĞůĞĚ͘ EŽƚĞƐΎΎ ^ŽƵƌĐĞ ĂƚĂϭΘϮ ϯϯϯϯϯϯϯϯϮ ^ĐŽƉĞΎ &ƵůůͲƵŝůĚ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ϭϮ ϯ &ŽƌĂŶĞdžƉůĂŶĂƚŝŽŶŽĨŵŝƐƐŝŽŶƐƐĐŽƉĞƐ͕ƉůĞĂƐĞƌĞĨĞƌĞŶĐĞƚŚĞĨŽůůŽǁŝŶŐ͗ hƐĞƐĂŶĚƉƌŽũĞĐƚĂǀĞƌĂŐĞĚĂŝůLJǀĞŚŝĐůĞŵŝůĞƐƚƌĂǀĞůĞĚ;sDdͿ͗ ŽŵďƵƐƚŝŽŶ͕ƐƚĂƚŝŽŶĂƌLJĞƋƵŝƉŵĞŶƚ͕ŶĂƚƵƌĂůŐĂƐ;ƚŚĞƌŵƐͬƐƋ͘ ŽŵďƵƐƚŝŽŶĂƌĞĂ;ĚŝĞƐĞů͕ďĂĐŬͲƵƉŐĞŶĞƌĂƚŽƌƐ͕','ŬŐͬŐĂů͘Ϳ KƉĞƌĂƚŝŽŶĂůĞŵŝƐƐŝŽŶƐ͕ŵŽďŝůĞĞƋƵŝƉŵĞŶƚ͕ĂĨƚĞƌƉƌŽũĞĐƚŝƐ Ɵ ǀŝ Ɵ ^ĐŽƉĞϯ͗͞^ĐŽƉĞϯĞŵŝƐƐŝŽŶƐĂƌĞƚŚĞƌĞƐƵůƚŽĨĂĐ KĨĨͲƐŝƚĞĞůĞĐƚƌŝĐŝƚLJ͕yĐĞůϮϬϮϭ;','ŬŐͬƐƋ͘Ĩƚ͘Ϳ ŵŝƐƐŝŽŶ^ŽƵƌĐĞ ůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶůĞĐƚƌŝĐŝƚLJͬWŽǁĞƌ^ƚĂƚŝŽŶ KĨĨͲƐŝƚĞǁĂƐƚĞŵĂŶĂŐĞŵĞŶƚ dŽƚĂůĞŵŝƐƐŝŽŶƐ;ƚŽŶŶĞƐͿ DĞĚŝĐĂůKĨĨŝĐĞDĞĚŝĐĂůKĨĨŝĐĞ ΎΎĂƚĂ^ŽƵƌĐĞEŽƚĞƐ͗ ŝŶǀĞŶƚŽƌLJͲŐƵŝĚĂŶĐĞͿ ^ƵďƚŽƚĂů^ƵďƚŽƚĂů ,ŽƐƉŝƚĂů,ŽƐƉŝƚĂů ^ĐŚŽŽů^ĐŚŽŽů ŽƉĞƌĂƚŝŽŶĂů ŐƵŝĚĂŶĐĞͿ Ύ^ĐŽƉĞ͗ Ĩƚͬ͘LJƌ͘Ϳ͗ ϭϮϯ ͻͻͻ ƉĞƌƐƋ͘Ĩƚ͘ƉĞƌ ^ŽƵƌĐĞ͗dĂďůĞϮϭ͕ΗdĂƌŐĞƚĞĚ^ƚĂƚĞǁŝĚĞtĂƐƚĞŚĂƌĂĐƚĞƌŝnjĂƚŝŽŶ^ƚƵĚLJ͗tĂƐƚĞŝƐƉŽƐĂůĂŶĚŝǀĞƌƐŝŽŶ&ŝŶĚŝŶŐƐĨŽƌ^ĞůĞĐƚĞĚ/ŶĚƵƐƚƌLJ'ƌŽƵƉƐ͕ϮϬϬϲ͘ DŽĚĞů;tZDͿ͕KƌŐĂŶŝĐDĂƚĞƌŝĂůƐŚĂƉƚĞƌƐ͕ΗdžŚŝďŝƚϭͲϭϬ͕h͘^͘ŶǀŝƌŽŶŵĞŶƚĂůWƌŽƚĞĐƚŝŽŶŐĞŶĐLJKĨĨŝĐĞŽĨZĞƐŽƵƌĐĞŽŶƐĞƌǀĂƚŝŽŶĂŶĚZĞĐŽǀĞƌLJ͕ ^ŽƵƌĐĞĨŽƌĞŵŝƐƐŝŽŶƐĨƌŽŵƚŚĞ,ĞŶŶĞƉŝŶŶĞƌŐLJZĞĐŽǀĞƌLJĞŶƚĞƌ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƉĐĂ͘ƐƚĂƚĞ͘ŵŶ͘ƵƐͬĂŝƌͬƉĞƌŵŝƚƚĞĚͲĨĂĐŝůŝƚLJͲĂŝƌͲĞŵŝƐƐŝŽŶƐͲĚĂƚĂ͘^ŽƵƌĐĞ ϭ͘Ϭ ϭ͘ϭϭ͘ϭ tĂƐƚĞ;ŬŐ ^ŽƵƌĐĞĨŽƌĞŵŝƐƐŝŽŶĨĂĐƚŽƌĨŽƌůĂŶĚĨŝůůĞĚǁĂƐƚĞ͗ΗŽĐƵŵĞŶƚĂƚŝŽŶĨŽƌ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶĂŶĚŶĞƌŐLJ&ĂĐƚŽƌƐhƐĞĚŝŶƚŚĞtĂƐƚĞZĞĚƵĐƚŝŽŶ ^ŽƵƌĐĞĨŽƌĞƐƚŝŵĂƚĞŽĨŐƌŽƐƐƐƋƵĂƌĞĨĞĞƚ;'^&ͿƉĞƌƐƚĂĨĨĞĚŚŽƐƉŝƚĂůďĞĚ;Ϯ͕ϱϬϬ'^&ͬďĞĚͿ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ďĚĐŶĞƚǁŽƌŬ͘ĐŽŵͬŽǀĞƌƐŝnjĞĚͲŚĞĂůƚŚĐĂƌĞͲ Ͳ ĨŽƌƚŽŶƐƉƌŽĐĞƐƐĞĚďLJƚŚĞ,Z͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƉĐĂ͘ƐƚĂƚĞ͘ŵŶ͘ƵƐͬǁĂƐƚĞͬƌĞƉŽƌƚͲϮϬϭϵͲƐĐŽƌĞͲƉƌŽŐƌĂŵƐ͘ƐƐƵŵĞKůŵƐƚĞĚŽƵŶƚLJtdŚĂƐƐŝŵŝůĂƌ LJƌ͘Ϳ &ĞďƌƵĂƌLJϮϬϭϲ͘ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĞƉĂ͘ŐŽǀͬǁĂƌŵͬĚŽĐƵŵĞŶƚĂƚŝŽŶͲĐŚĂƉƚĞƌƐͲŐƌĞĞŶŚŽƵƐĞͲŐĂƐͲĞŵŝƐƐŝŽŶͲĞŶĞƌŐLJͲĂŶĚͲĞĐŽŶŽŵŝĐͲĨĂĐƚŽƌƐͲƵƐĞĚͲǁĂƐƚĞ ďĞĚƐϭ͕ϵϲϮ͕ϮϲϵƐƋ͘Ĩƚ͘ϭϭϰ͕ϭϵϱƐƋ͘Ĩƚ͘Ϯ͕Ϭϳϲ͕ϰϲϰϮ͕ϮϴϵϬ͘ϱϮϳϯϳ^ƵďƚŽƚĂůĞŵŝƐƐŝŽŶƐ;ƚŽŶŶĞƐͿϳϱϵ Ϭ͘ϱϰϮϮ ŵŽƵŶƚƐ ƐƋ͘Ĩƚ͘Ͳ tĂƐƚĞ ^ŽƵƌĐĞĨŽƌŚŽƐƉŝƚĂůǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶƉĞƌƐƚĂĨĨĞĚďĞĚ;ϭϲůďͬďĞĚͬĚĂLJсϳ͘ϮϲŬŐͬďĞĚͬĚĂLJͿ͖ŽŵŵĞƌĐŝĂů;Ϭ͘ϬϬϲůďͬƐƋĨƚͬĚĂLJͿ͗ ŵŝƐƐŝŽŶ&ĂĐƚŽƌ ;ƚŽŶŶĞƐͬƚŽŶͿ ŚƚƚƉƐ͗ͬͬƉƵďůŝĐ͘ƚĂďůĞĂƵ͘ĐŽŵͬĂƉƉͬƉƌŽĨŝůĞͬŵƉĐĂ͘ĚĂƚĂ͘ƐĞƌǀŝĐĞƐͬǀŝnjͬ^KZKǀĞƌǀŝĞǁͬ^KZKǀĞƌǀŝĞǁ ^ŽƵƌĐĞ͗ΗϮϬϮϮ^KZZWKZd͕ΗKůŵƐƚĞĚŽƵŶƚLJϮϬϮϮǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶ͕DWĂƚĂ^ĞƌǀŝĐĞƐ͕ ĂƚĂ^ŽƵƌĐĞŵŽƵŶƚhŶŝƚƐ ŽŵŵĞƌĐŝĂů;ŬŐΛϬ͘ϵϵϯŬŐͬƐƋ͘Ĩƚͬ͘LJƌ͘Ϳϴϭϭϱ͕ϬϬϬ ,ŽƐƉŝƚĂů;ŬŐΛϳ͘ϮϲŬŐͬďĞĚͬĚĂLJͿϳ͕ϴϳϰϬ >ĂŶĚĨŝůůĞĚǁĂƐƚĞ͕ϭ͘ϴй;ƚŽŶƐͿĂŶĚĞŵŝƐƐŝŽŶĨĂĐƚŽƌϰ͕ϱ͕ϲϰϭtĂƐƚĞƚŽĞŶĞƌŐLJ͕ϲϭ͘ϵй;ƚŽŶƐͿĂŶĚĞŵŝƐƐŝŽŶĨĂĐƚŽƌϰ͕ϱ͕ϲϭ͕ϰϭϳ ^ƵďƚŽƚĂůƐ;ŬŐͿϭ͕ϵϲϱ͕ϬϬϬ KĨĨŝĐĞƐ;ŬŐΛϬ͘ϴϰϴŬŐͬƐƋ͘Ĩƚͬ͘LJƌ͘ͿϮͲ ŚƚƚƉƐ͗ͬͬǁǁǁϮ͘ĐĂůƌĞĐLJĐůĞ͘ĐĂ͘ŐŽǀͬtĂƐƚĞŚĂƌĂĐƚĞƌŝnjĂƚŝŽŶͬ'ĞŶĞƌĂůͬZĂƚĞƐ &ƵůůͲƵŝůĚ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ŚƚƚƉƐ͗ͬͬǁǁǁϮ͘ĐĂůƌĞĐLJĐůĞ͘ĐĂ͘ŐŽǀͬWƵďůŝĐĂƚŝŽŶƐͬĞƚĂŝůƐͬϭϭϴϰ ŚŽǁͲĚŝĚͲǁĞͲŐĞƚͲŚĞƌĞͲĂŶĚͲŚŽǁͲĚŽͲǁĞͲƌŝŐŚƚͲƐŝnjĞ ^ŽůŝĚtĂƐƚĞ'ĞŶĞƌĂƚŝŽŶ ĞŵŝƐƐŝŽŶĨĂĐƚŽƌ͘ tĂƐƚĞ'ĞŶĞƌĂƚŝŽŶ tĂƐƚĞ;ƚŽŶƐͿ EŽƚĞƐ͗ hƐĞƐ͗ ϰ ϱϲϳϴ Ϯ &ƵůůͲƵŝůĚ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ĂĐŬƵƉ'ĞŶĞƌĂƚŽƌ&ƵĞůŽŶƐƵŵƉƚŝŽŶ ŝĞƐĞů 'ĞŶĞƌĂƚŽƌ ŽŶƐƵŵƉƚŝŽŶ ƵŝůĚŝŶŐ ^ŝnjĞ',';ŬŐͿ ^ŝnjĞ;ŬtͿ ;ŐĂů͘Ϳ ůůhƐĞƐ;ƐƋ͘Ĩƚ͘Ϳϭ͕ϵϳϬ͕ϬϬϬϵ͕ϵϬϬϮϭϰϮ͕Ϯϵϲ dŽƚĂůϮϭϰϮ͕Ϯϵϲ EŽƚĞƐ͗ ĂĐŬƵƉŐĞŶĞƌĂƚŽƌ͗ƐƐƵŵĞϱϬŬtнϱtƉĞƌƐƋ͘Ĩƚ͘;ƐŽƵƌĐĞ͗ ϭ ŚƚƚƉƐ͗ͬͬǁŽŽĚƐƚŽĐŬƉŽǁĞƌ͘ĐŽŵͬďůŽŐͬŚŽǁͲƚŽͲƐŝnjĞͲĂͲŐĞŶĞƌĂƚŽƌͲĨŽƌͲĐŽŵŵĞƌĐŝĂůͲďƵŝůĚŝŶŐͬͿ͘ ŝĞƐĞůĐŽŶƐƵŵƉƚŝŽŶƉĞƌŚŽƵƌĨƌŽŵĐŚĂƌƚďĞůŽǁ͘DŽŶƚŚůLJƚĞƐƚŝŶŐĨŽƌϯϬŵŝŶƵƚĞƐ;ƐŽƵƌĐĞ͗ Ϯ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŚĞĂůƚŚ͘ƐƚĂƚĞ͘ŵŶ͘ƵƐͬĨĂĐŝůŝƚŝĞƐͬƌĞŐƵůĂƚŝŽŶͬĞŶŐŝŶĞĞƌŝŶŐͬĚŽĐƐͬůƐĐŐĞŶƐĞƚƐ͘ƉĚĨͿ ^ŽƵƌĐĞ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƵƐƉĞŐůŽďĂů͘ĐŽŵͬƉĂŐĞƐͬƌĞƐŽƵƌĐĞƐ &ƵůůͲƵŝůĚ'ƌĞĞŶŚŽƵƐĞ'ĂƐŵŝƐƐŝŽŶƐ͕DĂLJŽhŶďŽƵŶĚhZ ǀĞƌĂŐĞĚĂŝůLJǀĞŚŝĐůĞŵŝůĞƐƚƌĂǀĞůĞĚ;sDdͿŝŶƚŚĞǀŝĐŝŶŝƚLJŽĨƚŚĞƐŝƚĞ ĂƚĞŐŽƌLJ sDd',';ŬŐͿ sDdϭϭ͕ϵϯϮϭ͕ϵϮϯ͕ϴϲϳ ϯZ^dZdEtϳϮϬϬ͘ϭϯϲϰϳϱϲϭ^d^dZdEtͲ^dϭϲϱϬ͘ϬϯϭϭϭϮϳEdZ^dZdtϭϯϬϬϬ͘Ϯϰϲϵϭ͕ϳϬϰϮE^dZd^tϵϴϬϬ͘ϭϴϲϱϮ͕ϲϴϲϳd,sEhϳϬϬϬ͘ϭϯϯϯϴϲϬϭϵϰϬ͘ϵϭ͕ϵϰϭϭϲϭϰ͘ϵϭ͕ϲϭϱ ϮE^dZdEtϭϳϱϬ͘ϬϯϯϮϮϱϵϭ^d^dZdEtͲt^dϯϳϱϬ͘ϬϳϭϮϮϵϯϭ^d^dZd^tϰϬϬϬ͘ϬϳϲϯϮϯϴϲd,sEhϭϬϯϬϬ͘ϭϵϱϱϭ͕ϰϱϮϮEsEhϮϬϬϬ͘ϬϯϴϭϮ ϭϭ͕ϵϯϮ sDd ;ƚŽƚĂůͿ sDd ϭϯϰϲ͘Ϭ ϭϯϰϬ͘ϭ dKd> ϯϭϱ͘ϳϭϯϰ͘ϲϭϰϱ͘ϲϭϰϳ͘ϳϴϳϭ͘ϰϭϮϭ͘ϰϰϯϲ͘ϬϳϮϮ͘ϰ ϰϯϵ͘ϵϭϮϰ͘ϯϴϯϮ͘ϱϭϭϲ͘ϮϰϮϰ͘ϭϳϮϵ͘Ϯ ϰϰ͘ϵϴϮ͘ϭ Ϭ͘ϲ ϭ͘Ϯ dƌŝƉƐϵ ĂŝůLJ ϯϲϭϳ ϯϱϳϱ dƌŝƉƐϴ ĂŝůLJ ϯϱϳϲϯϱϯϳ dƌŝƉƐϳ ĂŝůLJ ϯϱϱϰ ϯϭϴϱ dƌŝƉƐϲ ĂŝůLJ ϯϱϮϰ ϯϯϮϱϭϬϭϭϴϴϭϮϳϳϳϬϮϳϳϯϰϲϴϳϰϲϳϰϰϲϯϳϱϮϰϴϰϲϳϯϬϴϮϳϳϴϯϰϭϳϭϰϲ dƌŝƉƐϱ ĂŝůLJ ϯϳϮϲϰϱϮϰ ϯϵϱϵϲϱϰϵϳϬϵϱϰϰϵϱ dƌŝƉƐϰ ĂŝůLJ ϰϭϴϰϯϳϴϳϰϬϮϳϯϴϯϳ ϯϬϯϴϲϱϰϵϳϬϵϱϯϵϴϴ dƌŝƉƐϯ ĂŝůLJ ϰϭϴϲϳϱϯϬϯϲϮϲϯϴϯϳ ϮϳϮϵϯϴϵϱϯϵϱϴϭϰϴϴϭϲϭϯϲϵϳϮϯϱϲϱϰϬϯϭ dƌŝƉƐϮ ĂŝůLJ ϯϴϯϰϮϬϰϳϭϱϱϬϭϱϵϬϳϳϯϲ ϭϴϲϯϮϱϰϱϰϬϴϭϭϴϵϱϮϲϮϮϮϳϰϯϳϭϱϴϯϱϲϱϯϱϳϭϯϬϲϱϯϭϬϭ dƌŝƉƐϭ ĂŝůLJ ϭϲϯϬϯϲϲϲϮϮϬϰϭϰϯϳϮϲϯϰϮϳϰϳϭϲϬϲϳϳϯϲϳϵϰϬϯϬϰϲ ϮϮϳϵϰϬϰϯϮϭϭϮϮϲϮϴϭϱϲϱϮϳϯϱϮϯϵϵϯϮϴϯ ϯϮϭϱ ϯZsEhϭϯϬϬϬ͘ϮϰϲϲŝƌĞĐƚŝŽŶϭ ϰd,sEhϭϯϬϬϬ͘ϮϰϲϲŝƌĞĐƚŝŽŶϭ ŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮ ŝƌĞĐƚŝŽŶϭŝƌĞĐƚŝŽŶϮ WĂƌƚŝƚŝŽŶƐŝƌĞĐƚŝŽŶ &ƵůůͲƵŝůĚŽŶĚŝƚŝŽŶƐͲsDdĂůĐƵůĂƚŝŽŶ >ĞŶŐƚŚ;ŵŝͿ ^ĞŐŵĞŶƚ >ĞŶŐƚŚ;ĨƚͿ ^ĞŐŵĞŶƚ ^ĞŐŵĞŶƚ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± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ±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¶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ϭƐƚƌŽĂĚǁĂLJ ϭƐƚƌŽĂĚǁĂLJ ϱƚŚϯƌĚΘϰƚŚϮŶĚ ϱƚŚϯƌĚΘϰƚŚϮŶĚ ϮϬϰϱWZ:ϮϬϰϱWZ: ϮϬϰϱZ&ϮϬϰϱZ& ϮϬϭϴ ϮϬϭϴ ϲƚŚ ϲƚŚ ϳƚŚ ϳƚŚ ϮϱϬϬϬϮϬϬϬϬϭϱϬϬϬϭϬϬϬϬ ϱϬϬϬ ϱϬϬϬϬ ϮϱϬϬϬϮϬϬϬϬϭϱϬϬϬϭϬϬϬϬϬ Et EtϯƌĚ EtϮŶĚ ^tĞŶƚĞƌϭƐƚ WZ: ϮϬϰϱ Z& ϮϬϰϱ ϮϬϭϴ ^tϭƐƚ ^tϮŶĚ ϯƌĚ ϭϲϬϬϬϭϰϬϬϬϭϮϬϬϬϭϬϬϬϬϬ ϴϬϬϬϲϬϬϬϰϬϬϬϮϬϬϬ ϯϱ ϲ ϯϱ ϲ R W \ N D SDUZ D VHFVHF H R; Y W $ GUL Q Z 0 )) R GR LQJW 2 V Z '523 Y OR PR V VHFVHF V W DU 9* DU F W / V $ Q $ \ KH 5 KH Z ( W *(1 URP Q KH H Z H I P P WL WL I S I R X II S GURS R X SLFN SN RF L U S G ϭϭϰ ϳϯϮϮϲϭϭϵ ϯϱϯϰϬϭϭϲ ϭϬϵ ϵϬ >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > >!@ @ ± > @ ± > &RORXUFRGHEDVHGRQ'HJUHHRI6DWXUDWLRQ @ ± > %,.(:$/. 75$16,7 &$5322/ 6+$5( 02'( 027259(+,&/( %,.(:$/. &$5322/ 2&,9,& 5 ( 17 17 < 0$ ( ( 510 & 5 ( 17 ( *29 ( & . &/,1,& /'3$5 2 6 5 < 0$ ( 2/', ( ), 6 < 5 ( &29 . :$/ 6 ', 7+$9( &(17(567 1'67 7+677+67 6287+:(67 &,9,&&(17(5'5 +,6725,& .87=.<3$5. 7+$9( 6 3,7$/ < 70$5 &/,1,& 6 2 + 6 .XW]N\ 3DUN 7+$9( $ /HYHORI 6HUYLFH /26&/26%/26%/26%/26&/26&/26&/26&/26&/26%/26%/26&/26&/26&/26&/26& $ /26 VHFː +9@ '(0$1' )/2:6 HKLFOH0RYHPHQW3HUIRUPDQFH RWDO YHKK $ /HYHORI 6HUYLFH /26'/26'/26'/26'/26&/26&/26'/26&/26'/26'/26'/26'/26'/26&/26%/26&/26& VHF $ /HYHORI 6HUYLFH /26'/26%/26%/26'/26(/26)/26(/26%/26%/26(/26)/26(/26( $$$$ /26/26/26/26 VHF +9@ $ /HYHORI 6HUYLFH /26&/26%/26%/26&/26&/26&/26%/26%/26&/26%/26%/26% $$$$$ /26/26/26/26/26 VHF '(0$1' )/2:6 HKLFOH0RYHPHQW3HUIRUPDQFH RWDO YHKK $ /HYHORI 6HUYLFH /26'/26'/26'/26'/26'/26'/26'/26'/26&/26&/26&/26&/26&/26&/26&/26&/26' VHF )/2:6 HKLFOH0RYHPHQW3HUIRUPDQFH RWDO YHKK $ /HYHORI 6HUYLFH /26&/26&/26&/26&/26'/26'/26'/26'/26'/26'/26'/26'/26&/26&/26&/26&/26' VHF 'HOD\ U YH $ YF 6DWQ '(0$1' )/2:6 HKLFOH0RYHPHQW3HUIRUPDQFH RWDO YHKK $ /HYHORI 6HUYLFH /26'/26'/26'/26'/26&/26&/26&/26&/26&/26&/26&/26&/26& $$$$ /26/26/26/26 VHF 'HOD\ U YH $ YF 6DWQ 'HJ +9@ '(0$1' )/2:6 HKLFOH0RYHPHQW3HUIRUPDQFH RWDO YHKK 7 > YHKK +9@ 92/80(6 7 ,138 YH1: YH1: RWDO YHKK RWDO YHKK 7 > YHKK +9@ 92/80(6 7 ,138 YH1: YH1: RWDO YHKK UIRUPDQFH RWDO YHKK :ƵůLJϭϲ͕ϮϬϮϰ ůůŝŽƚDŽŚůĞƌ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ ϰϬϬϭtĞƐƚZŝǀĞƌWĂƌŬǁĂLJEŽƌƚŚǁĞƐƚ͕^ƵŝƚĞϭϬϬ ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭ ĐŽŵŵƵŶŝƚLJĚĞǀĞůŽƉŵĞŶƚΛƌŽĐŚĞƐƚĞƌŵŶ͘ŐŽǀ Z͗DĂLJŽůŝŶŝĐŽůĚ&ŽƌǁĂƌĚhŶďŽƵŶĚʹůƚĞƌŶĂƚŝǀĞhƌďĂŶƌĞĂǁŝĚĞZĞǀŝĞǁ ĞĂƌ͗ůůŝŽƚDŽŚůĞƌ dŚĂŶŬLJŽƵĨŽƌƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽƌĞǀŝĞǁĂŶĚĐŽŵŵĞŶƚŽŶƚŚĞůƚĞƌŶĂƚŝǀĞhƌďĂŶƌĞĂǁŝĚĞZĞǀŝĞǁ ;hZͿĨŽƌƚŚĞDĂLJŽůŝŶŝĐŽůĚ&ŽƌǁĂƌĚhŶďŽƵŶĚƉƌŽũĞĐƚ;WƌŽũĞĐƚͿůŽĐĂƚĞĚŝŶZŽĐŚĞƐƚĞƌ͕KůŵƐƚĞĂĚ ŽƵŶƚLJ͕DŝŶŶĞƐŽƚĂ͘dŚĞWƌŽũĞĐƚĐŽŶƐŝƐƚƐŽĨDĂLJŽůŝŶŝĐƉƌŽƉŽƐŝŶŐƚŽƌĞĚĞǀĞůŽƉƚŚĞĂƌĞĂǁŝƚŚ ĂƉƉƌŽdžŝŵĂƚĞůLJϭ͕ϵϳϬ͕ϬϬϬƐƋƵĂƌĞĨĞĞƚŽĨŵĞĚŝĐĂůŝŶƐƚŝƚƵƚŝŽŶĂůĂŶĚϵϬ͕ϬϬϬƐƋƵĂƌĞĨĞĞƚŽĨĞůĞĐƚƌŝĐ ŐĞŶĞƌĂƚŝŶŐůĂŶĚƵƐĞƐ͘ZĞŐĂƌĚŝŶŐŵĂƚƚĞƌƐĨŽƌǁŚŝĐŚƚŚĞDŝŶŶĞƐŽƚĂWŽůůƵƚŝŽŶŽŶƚƌŽůŐĞŶĐLJ;DWͿŚĂƐ ƌĞŐƵůĂƚŽƌLJƌĞƐƉŽŶƐŝďŝůŝƚLJĂŶĚŽƚŚĞƌŝŶƚĞƌĞƐƚƐ͕ƚŚĞDWƐƚĂĨĨŚĂƐƚŚĞĨŽůůŽǁŝŶŐĐŽŵŵĞŶƚƐĨŽƌLJŽƵƌ ĐŽŶƐŝĚĞƌĂƚŝŽŶ͘ tĂƐƚĞǁĂƚĞƌ dŚĞhZŝŶĚŝĐĂƚĞƐƚŚĂƚƚŚĞĞƐƚŝŵĂƚĞĚǁĂƐƚĞǁĂƚĞƌĨůŽǁĨŽƌƵŝůĚŝŶŐϭŝƐƚŽďĞĨŝŶĂůŝnjĞĚ͘Ŷ x ĞƐƚŝŵĂƚĞŽĨǁĂƐƚĞǁĂƚĞƌĨůŽǁĨŽƌƵŝůĚŝŶŐϭƐŚŽƵůĚďĞŝĚĞŶƚŝĨŝĞĚƐŽƚŚĂƚƚŚĞĞƐƚŝŵĂƚĞĚ ǁĂƐƚĞǁĂƚĞƌĨůŽǁĨŽƌƚŚĞƉƌŽƉŽƐĞĚĚĞǀĞůŽƉŵĞŶƚĂƚĨƵůůďƵŝůĚŝƐƉƌŽǀŝĚĞĚ͘ tĞĂƉƉƌĞĐŝĂƚĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽƌĞǀŝĞǁƚŚŝƐWƌŽũĞĐƚ͘WůĞĂƐĞďĞĂǁĂƌĞƚŚĂƚƚŚŝƐůĞƚƚĞƌĚŽĞƐŶŽƚ ĐŽŶƐƚŝƚƵƚĞĂƉƉƌŽǀĂůďLJƚŚĞDWŽĨĂŶLJŽƌĂůůĞůĞŵĞŶƚƐŽĨƚŚĞWƌŽũĞĐƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨƉĞŶĚŝŶŐŽƌ ĨƵƚƵƌĞƉĞƌŵŝƚĂĐƚŝŽŶƐďLJƚŚĞDW͘hůƚŝŵĂƚĞůLJ͕ŝƚŝƐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƚŚĞWƌŽũĞĐƚƉƌŽƉŽƐĞƌƚŽƐĞĐƵƌĞ ĂŶLJƌĞƋƵŝƌĞĚƉĞƌŵŝƚƐĂŶĚƚŽĐŽŵƉůLJǁŝƚŚĂŶLJƌĞƋƵŝƐŝƚĞƉĞƌŵŝƚĐŽŶĚŝƚŝŽŶƐ͘/ĨLJŽƵŚĂǀĞĂŶLJƋƵĞƐƚŝŽŶƐ ĐŽŶĐĞƌŶŝŶŐŽƵƌƌĞǀŝĞǁŽĨƚŚŝƐhZ͕ƉůĞĂƐĞĐŽŶƚĂĐƚŵĞďLJĞŵĂŝůĂƚŚƌŝƐ͘'ƌĞĞŶΛƐƚĂƚĞ͘ŵŶ͘ƵƐŽƌďLJ ƚĞůĞƉŚŽŶĞĂƚϱϬϳͲϰϳϲͲϰϮϱϴ͘ ^ŝŶĐĞƌĞůLJ͕ &KULV*UHHQ dŚŝƐĚŽĐƵŵĞŶƚŚĂƐďĞĞŶĞůĞĐƚƌŽŶŝĐĂůůLJƐŝŐŶĞĚ͘ ŚƌŝƐ'ƌĞĞŶ WƌŽũĞĐƚDĂŶĂŐĞƌ ŶǀŝƌŽŶŵĞŶƚĂůZĞǀŝĞǁhŶŝƚ ZĞƐŽƵƌĐĞDĂŶĂŐĞŵĞŶƚĂŶĚƐƐŝƐƚĂŶĐĞŝǀŝƐŝŽŶ '͗ƌƐ ĐĐ͗ĂŶĂƌĚ͕DW ůůŝŽƚDŽŚůĞƌ WĂŐĞϮ :ƵůLJϭϲ͕ϮϬϮϰ <ŝƌƐƚĞŶŝĞƚĞƌŵĂŶ͕DW ĂƌŽŶ,ŝŶnj͕DW ƌĂŶĚŽŶ^ŵŝƚŚ͕DW :ĞĨĨĞƌLJ,ĞĚŵĂŶ͕DW ŽůŝŶŽLJƐĞŶ͕DW ĞĞƉĂĚĞůǁŝƐ͕DW :ƵůŝĞ,ĞŶĚĞƌƐŽŶ͕DW ĂǀŝĚ^ĂŚůŝ͕DW tĂLJŶĞŽƌĚƐ͕DW ŝǀŝƐŝŽŶŽĨĐŽůŽŐŝĐĂůĂŶĚtĂƚĞƌZĞƐŽƵƌĐĞƐdƌĂŶƐŵŝƚƚĞĚďLJŵĂŝů ZĞŐŝŽŶϯ,ĞĂĚƋƵĂƌƚĞƌƐ ϭϮϬϬtĂƌŶĞƌZŽĂĚ ^ĂŝŶƚWĂƵů͕DEϱϱϭϬϲ :ƵůLJϭϴ͕ϮϬϮϰ ůůŝŽƚDŽŚůĞƌ͕WůĂŶŶĞƌ ŝƚLJŽĨZŽĐŚĞƐƚĞƌ ϰϬϬϭtĞƐƚZŝǀĞƌWĂƌŬǁĂLJEt͕^ƵŝƚĞϭϬϬ ZŽĐŚĞƐƚĞƌ͕DEϱϱϵϬϭ ĞĂƌůůŝŽƚDŽŚůĞƌ͕ dŚĂŶŬLJŽƵĨŽƌƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽƌĞǀŝĞǁƚŚĞŽůĚ͘&ŽƌǁĂƌĚ͘hŶďŽƵŶĚ͘/ŶZŽĐŚĞƐƚĞƌƌĂĨƚůƚĞƌŶĂƚŝǀĞ hƌďĂŶƌĞĂǁŝĚĞZĞǀŝĞǁ;hZͿŝŶKůŵƐƚĞĚŽƵŶƚLJ͘dŚĞEZƌĞƐƉĞĐƚĨƵůůLJƐƵďŵŝƚƐƚŚĞĨŽůůŽǁŝŶŐ ĐŽŵŵĞŶƚƐĨŽƌLJŽƵƌĐŽŶƐŝĚĞƌĂƚŝŽŶ͗ ϭ͘WĂŐĞϮϰ͕^ĞĐƚŝŽŶϭϮ͘ŝ͕^ƵƌĨĂĐĞtĂƚĞƌĂŶĚ'ƌŽƵŶĚǁĂƚĞƌ&ĞĂƚƵƌĞƐ͗dŚŝƐƐĞĐƚŝŽŶƐƚĂƚĞƐƚŚĂƚ ĂƐĐĂĚĞƌĞĞŬ͕^ŝůǀĞƌ>ĂŬĞĂŶĚƚŚĞƵŵďƌŽZŝǀĞƌĂƌĞůŝƐƚĞĚĂƐŝŵƉĂŝƌĞĚĨŽƌǁĂƚĞƌƋƵĂůŝƚLJ͕ďƵƚ ĚŽĞƐŶŽƚƐƉĞĐŝĨLJǁŚĂƚƚŚĞŝŵƉĂŝƌŵĞŶƚƐĂƌĞ͕;ƚŚŝƐŝƐůĂƚĞƌŵĞŶƚŝŽŶĞĚŽŶƉĂŐĞϮϴͿ͘dŚĞƐĞĐƚŝŽŶ ĐŽŶƚŝŶƵĞƐƚŽŶŽƚĞƚŚĂƚĂĚĚŝƚŝŽŶĂůĐŽŶƐƚƌƵĐƚŝŽŶDWƐŝŶƐĞĐƚŝŽŶƐϮϯ͘ϵĂŶĚϮϯ͘ϭϬŽĨƚŚĞEW^ ĐŽŶƐƚƌƵĐƚŝŽŶƐƚŽƌŵǁĂƚĞƌƉĞƌŵŝƚǁŝůůďĞŝŵƉůĞŵĞŶƚĞĚƚŽŵŝŶŝŵŝnjĞƚŚĞƉƌŽũĞĐƚŝŵƉĂĐƚƐĚƵƌŝŶŐ ĐŽŶƐƚƌƵĐƚŝŽŶŽŶůLJ͕ďƵƚƚŚŝƐƉĞƌŵŝƚŝƐŶŽƚŝŶĐůƵĚĞĚŝŶƚŚĞƉƉĞŶĚŝdž͘tŚĂƚŝƐƚŚĞƉƌŽũĞĐƚ͛ƐůŽŶŐͲ ƚĞƌŵƉŽƐƚƉƌŽũĞĐƚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐƚŽƉƌĞǀĞŶƚŝŵƉĂĐƚƐƚŽƚƵƌďŝĚŝƚLJ͕ŽƌŝŶǀĞƌƚĞďƌĂƚĞƐ͍ Ϯ͘WĂŐĞϯϬ͕^ĞĐƚŝŽŶϭϮ͘ϯ͘ŝŝ͕WƌŽũĞĐƚĨĨĞĐƚƐ͕^ƚŽƌŵǁĂƚĞƌͬWƌŽƉŽƐĞĚŽŶĚŝƚŝŽŶƐ͗dŚŝƐƐĞĐƚŝŽŶƐƚĂƚĞƐ͕ ͞DŽƐƚƐŝƚĞƐǁŝůůƉƌŽǀŝĚĞŽŶƐŝƚĞƚƌĞĂƚŵĞŶƚ͕ďƵƚǁŚĞƌĞƚŚĂƚŝƐŶŽƚĨĞĂƐŝďůĞDĂLJŽůŝŶŝĐǁŝůůŝĚĞŶƚŝĨLJ ĂƌĞĂƐƚŽŽǀĞƌƐŝnjĞDWƐƚŽƉƌŽǀŝĚĞƚŚĞƌĞƋƵŝƌĞĚǁĂƚĞƌƋƵĂůŝƚLJǀŽůƵŵĞ͖ƚŚĞƐĞůŽĐĂƚŝŽŶƐĐŽƵůĚďĞ ŽƵƚƐŝĚĞŽĨƚŚĞƐƚƵĚLJĂƌĞĂ͘͟/ƚŝƐŶŽƚĐůĞĂƌŝĨƚŚĞĂůƚĞƌŶĂƚŝǀĞůŽĐĂƚŝŽŶƐŽĨƚƌĞĂƚŵĞŶƚǁŽƵůĚďĞ ƉƌŽǀŝĚĞĚǁŝƚŚŝŶƚŚĞƐĂŵĞǁĂƚĞƌƐŚĞĚŽƌďĞŶĞĨŝƚƚŚĞƐĂŵĞǁĂƚĞƌƌĞƐŽƵƌĐĞƐŽƌĚƌĂŝŶĂŐĞĂƌĞĂ͍ WůĞĂƐĞƉƌŽǀŝĚĞŵŽƌĞĚĞƚĂŝůƐ͘ ϯ͘WĂŐĞϯϬ͕^ĞĐƚŝŽŶϭϮ͘ϯ͘ŝŝŝ͕tĂƚĞƌƉƉƌŽƉƌŝĂƚŝŽŶ͕tĂƚĞƌƐƵƉƉůLJ͗ Ă͘dŚŝƐƐĞĐƚŝŽŶŶŽƚĞƐƚŚĂƚƚŚĞĂƌĞĂŝƐƐĞƌǀĞĚďLJZŽĐŚĞƐƚĞƌWƵďůŝĐhƚŝůŝƚŝĞƐďƵƚĚŽĞƐŶŽƚ ŝŶĚŝĐĂƚĞŚŽǁŵƵĐŚĂĚĚŝƚŝŽŶĂůǁĂƚĞƌƵƐĂŐĞŝƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚ͘dŚĞ ƌĞƉŽƌƚŶŽƚĞƐƚŚĞŐĞŽƚŚĞƌŵĂůƐLJƐƚĞŵǁŝůůŐĞŶĞƌĂƚĞϮϯϰ͕ϬϬϬ͕ϬϬϬŐĂůůŽŶƐ͘/ƐƚŚŝƐƚŚĞ ǀŽůƵŵĞŽĨǁĂƚĞƌƌĞƋƵŝƌĞĚƚŽƐƵƉƉůLJƚŚĞĚĞǀĞůŽƉŵĞŶƚƉƌŽƉŽƐĂůƵŶĚĞƌƚŚĞĨƵůůďƵŝůĚ ƐĐĞŶĂƌŝŽ͍tŝůůĂĚĚŝƚŝŽŶĂůƌĞƐŽƵƌĐĞƐďĞƌĞƋƵŝƌĞĚĨƌŽŵŽƚŚĞƌǁĂƚĞƌƐƵƉƉůLJǁĞůůƐƚŽ ĂƵŐŵĞŶƚƚŚĞŐĞŽƚŚĞƌŵĂůǁĂƚĞƌƐƵƉƉůLJƐŽƵƌĐĞƐ͍/ĨƐŽ͕ǁŚĂƚĂƌĞƚŚŽƐĞĚĞƚĂŝůƐ͍tŚĂƚĂƌĞ ƚŚĞƉƌŽƉŽƐĞĚĂĚĚŝƚŝŽŶĂůĚĞŵĂŶĚƐ͍WůĞĂƐĞĚĞƐĐƌŝďĞƚŚĞǁĂƚĞƌŶĞĞĚƐĨŽƌƚŚŝƐƉƌŽƉŽƐĂů͘ ϭ ϰ͘WĂŐĞϯϬͲϯϯ͕^ĞĐƚŝŽŶϭϮ͘ϯ͘ŝŝŝ͕tĂƚĞƌƉƉƌŽƉƌŝĂƚŝŽŶ͕'ƌŽƵŶĚǁĂƚĞƌ͗ ƋƵŝĨĞƌƐŽƵƌĐĞŝƐŝŵƉŽƌƚĂŶƚĨŽƌƚŚŝƐƉŽƚĞŶƚŝĂůƉƌŽũĞĐƚ͘/ŶƉƌĞǀŝŽƵƐĚŝƐĐƵƐƐŝŽŶƐ͕EZŚĂƐ Ă͘ ĂĚǀŝƐĞĚƉƌŽũĞĐƚĐŽŶƐƵůƚĂŶƚƐƚŚĂƚƚŚĞDŽƵŶƚ^ŝŵŽŶͲ,ŝŶĐŬůĞLJĂƋƵŝĨĞƌĐĂŶŶŽƚďĞƵƐĞĚĨŽƌ ŐĞŽƚŚĞƌŵĂů͕ĂƐƚŚĞDƚ͘^ŝŵŽŶŝƐƌĞƐƚƌŝĐƚĞĚƚŽƉŽƚĂďůĞǁĂƚĞƌƵƐĞƐŽŶůLJ͘/ŶĂĚĚŝƚŝŽŶ͕ƚŚĞƌĞ ĂƌĞƉŽƚĞŶƚŝĂůĐŽŶĐĞƌŶƐǁŝƚŚƵƐŝŶŐƚŚĞ:ŽƌĚĂŶĂƋƵŝĨĞƌĨŽƌŐĞŽƚŚĞƌŵĂůŽƌĨŽƌĨƵƚƵƌĞǁĂƚĞƌ ƐƵƉƉůLJĨŽƌŵƵůƚŝƉůĞƌĞĂƐŽŶƐ͕ŝŶĐůƵĚŝŶŐďƵƚŶŽƚůŝŵŝƚĞĚƚŽ͗ƉŽƚĞŶƚŝĂůĚƌŝŶŬŝŶŐǁĂƚĞƌ ŝŵƉĂĐƚƐ͕ĨƵƚƵƌĞĂƋƵŝĨĞƌƐƵƐƚĂŝŶĂďŝůŝƚLJĂŶĚƐƵƌĨĂĐĞǁĂƚĞƌĨĞĂƚƵƌĞŝŵƉĂĐƚƐ͘dŚĞ tŽŶĞǁŽĐͬdƵŶŶĞůŝƚLJŵĂLJďĞĂŵŽƌĞƐƵŝƚĂďůĞĂůƚĞƌŶĂƚŝǀĞĨŽƌƉƌŽũĞĐƚƉƌŽƉŽƐĞƌƚŽ ĞǀĂůƵĂƚĞĂŶĚĐŽŶƐŝĚĞƌ͘dŚĞhZĚŽĞƐŶŽƚĞůĂďŽƌĂƚĞǁŚLJƚŚĞtŽŶĞǁŽĐͬdƵŶŶĞůŝƚLJ ĂƋƵŝĨĞƌǁŽƵůĚŶŽƚLJŝĞůĚƚŚĞƌĞƐƵůƚƐŶĞĐĞƐƐĂƌLJ͕ŶŽƌĚŽĞƐŝƚĞdžƉůĂŝŶŚŽǁƚŚŝƐƉƌŽƉŽƐĂů ĐŽƵůĚŵŽǀĞĨŽƌǁĂƌĚǁŝƚŚŽƵƚĂŐĞŽƚŚĞƌŵĂůƐLJƐƚĞŵŽƌĐŽŶƐŝĚĞƌŽƚŚĞƌĂůƚĞƌŶĂƚŝǀĞƐ ǁŝƚŚŽƵƚŐĞŽƚŚĞƌŵĂů͘WůĞĂƐĞĐŽŶƐŝĚĞƌŽƚŚĞƌĂůƚĞƌŶĂƚŝǀĞǁĂƚĞƌƐƵƉƉůLJƐŽƵƌĐĞƐĂƐƚŚĞ ƉƌŽũĞĐƚĚĞƐŝŐŶŵŽǀĞƐĨŽƌǁĂƌĚ͘ ď͘'ĞŽƚŚĞƌŵĂůŝƐĚŝƐĐƵƐƐĞĚĂƐĂŶĂůƚĞƌŶĂƚŝǀĞǁĂƚĞƌƐƵƉƉůLJƐŽƵƌĐĞ͕ŚŽǁĞǀĞƌ͕ŝƚ͛ƐŶŽƚĂ ĐĞƌƚĂŝŶƚŚĂƚƚŚŝƐƐLJƐƚĞŵǁŽƵůĚďĞĂƉƉƌŽǀĞĚďLJƚŚĞEZŽƌD,͘DŝŶŶĞƐŽƚĂ^ƚĂƚƵĞƐ ϭϬϯ/͘ϲϮϭĐƵƌƌĞŶƚůLJĚŽĞƐŶŽƚĂůůŽǁůĂƌŐĞƌŐƌŽƵŶĚǁĂƚĞƌƚŚĞƌŵĂůĞdžĐŚĂŶŐĞĚĞǀŝĐĞƐLJƐƚĞŵƐ ǁŚĞƌĞǁĂƚĞƌƵƐĞĞdžĐĞĞĚƐхϱϬŐƉŵ͘tĂƚĞƌƉƉƌŽƉƌŝĂƚŝŽŶWĞƌŵŝƚǁŽƵůĚďĞƌĞƋƵŝƌĞĚ ĨƌŽŵƚŚĞEZĨŽƌŐƌŽƵŶĚǁĂƚĞƌƵƐĞŝŶǀŽůƵŵĞƐĞdžĐĞĞĚŝŶŐϭϬ͕ϬϬϬŐĂůůŽŶƐƉĞƌĚĂLJ͕ŽƌŽŶĞ ŵŝůůŝŽŶŐĂůůŽŶƐƉĞƌLJĞĂƌ͘dŚĞEZtĂƚĞƌƉƉƌŽƉƌŝĂƚŝŽŶWĞƌŵŝƚŵĂLJďĞŝƐƐƵĞĚ͕ĚĞŶŝĞĚ͕Žƌ ŝƐƐƵĞĚǁŝƚŚĐŽŶĚŝƚŝŽŶƐĚĞƉĞŶĚŝŶŐƵƉŽŶƚŚĞƉƌŽƉŽƐĂůĂŶĚŚŽǁŝƚĂůŝŐŶƐǁŝƚŚĂƉƉůŝĐĂďůĞ ƐƚĂƚĞƌƵůĞƐĂŶĚƐƚĂƚƵƚĞƐ͘WůĞĂƐĞďĞĂĚǀŝƐĞĚƚŚĞEZƉƌŽǀŝĚĞĚĂWƌĞůŝŵŝŶĂƌLJtĞůů ŽŶƐƚƌƵĐƚŝŽŶƐƐĞƐƐŵĞŶƚ;WtͿŚŝŐŚƌŝƐŬůĞƚƚĞƌƚŽDĂLJŽůŝŶŝĐŽŶƉƌŝůϭϱ͕ϮϬϮϰ͕ĨŽƌ ƚŚĞŝƌƉƌŽƉŽƐĂůƚŽŝŶƐƚĂůůĂŶĞǁǁĞůůƚŽƵƐĞŐƌŽƵŶĚǁĂƚĞƌĨŽƌĂůĂƌŐĞŐƌŽƵŶĚǁĂƚĞƌƚŚĞƌŵĂů ĞdžĐŚĂŶŐĞƐLJƐƚĞŵƚŚĂƚĞdžĐĞĞĚƐϱϬŐƉŵ͘EZŶŽƚĞĚƚŚĞƉƌŽƉŽƐĞĚůĂƌŐĞŐƌŽƵŶĚǁĂƚĞƌ ƚŚĞƌŵĂůĞdžĐŚĂŶŐĞƐLJƐƚĞŵĐĂŶŶŽƚďĞĂƉƉƌŽǀĞĚďLJƚŚĞEZƵŶƚŝůĂĨƚĞƌƚŚĞƐLJƐƚĞŵŚĂƐ ƌĞĐĞŝǀĞĚĂƉĞƌŵŝƚĨƌŽŵƚŚĞD,͘/ŶĂĚĚŝƚŝŽŶ͕ƚŚĞEZĂůƐŽŝĚĞŶƚŝĨŝĞĚƚŚĞƐĞĐƵŵƵůĂƚŝǀĞ ƉŽƚĞŶƚŝĂůĞĨĨĞĐƚƐ;ZĞůĂƚĞƐĂůƐŽƚŽWĂŐĞϱϰ͕^ĞĐƚŝŽŶϮϭ͕ƵŵƵůĂƚŝǀĞĨĨĞĐƚƐͿĨƌŽŵƚŚĞ ŐĞŽƚŚĞƌŵĂůƉƌŽƉŽƐĂůƚŚĂƚŵĂLJƉŽƚĞŶƚŝĂůůLJŝŵƉĂĐƚŽƚŚĞƌŐƌŽƵŶĚǁĂƚĞƌƵƐĞƌƐĂŶĚƚŚĞ ĨŽůůŽǁŝŶŐƉŽƚĞŶƚŝĂůůLJƐŝŐŶŝĨŝĐĂŶƚƌĞƐŽƵƌĐĞŝŵƉĂĐƚƐ͗ ŝ͘&ŝǀĞĐĂůĐĂƌĞŽƵƐĨĞŶƐĂƌĞůŽĐĂƚĞĚďĞƚǁĞĞŶϮ͘ϵϲŵŝůĞƐĂŶĚϰ͘ϱϳŵŝůĞƐĨƌŽŵƚŚĞ ƉƌŽƉŽƐĞĚǁĞůůƐƐŝƚĞ͕ĂŶĚĐŽƵůĚďĞŝŵƉĂĐƚĞĚĚĞƉĞŶĚŝŶŐŽŶƚŚĞĂƋƵŝĨĞƌƵƐĞĚĨŽƌ ƚŚĞŐĞŽƚŚĞƌŵĂůƐLJƐƚĞŵ͘^ƚĂƚĞ>ĂǁƐƚĂƚĞƐƚŚĂƚĂĐĂůĐĂƌĞŽƵƐĨĞŶŵĂLJŶŽƚďĞĨŝůůĞĚ͕ ĚƌĂŝŶĞĚ͕ŽƌŽƚŚĞƌǁŝƐĞŽďǀŝŽƵƐůLJĚĞŐƌĂĚĞĚ͘ ŝŝ͘dŚĞƵŵďƌŽZŝǀĞƌ͕ĂƐĐĂĚĞƌĞĞŬ͕^ŝůǀĞƌƌĞĞŬ͕ĂŶĚĞĂƌƌĞĞŬĂƌĞůŽĐĂƚĞĚ ďĞƚǁĞĞŶϬ͘ϮϳŵŝůĞƐĂŶĚϬ͘ϵϭŵŝůĞƐĨƌŽŵƚŚĞƐŝƚĞŽĨƚŚĞƉƌŽƉŽƐĞĚǁĞůůƐ͘ ŝŝŝ͘ŝŐŚƚZŽĐŚĞƐƚĞƌWƵďůŝĐhƚŝůŝƚLJƉƵďůŝĐǁĂƚĞƌƐƵƉƉůLJǁĞůůƐĂƌĞůŽĐĂƚĞĚďĞƚǁĞĞŶϬ͘ϱϭ ŵŝůĞƐĂŶĚϭ͘ϯϵŵŝůĞƐĨƌŽŵƚŚĞƉƌŽƉŽƐĞĚƐŝƚĞŽĨƚŚĞƉƌŽƉŽƐĞĚǁĞůůƐ͘/ĨƚŚĞ ŐƌŽƵŶĚǁĂƚĞƌƚŚĞƌŵĂůĞdžĐŚĂŶŐĞƐLJƐƚĞŵĚĞƉƌŝǀĞƐƚŚĞĚŽŵĞƐƚŝĐŽƌŵƵŶŝĐŝƉĂů ǁĂƚĞƌƐƵƉƉůLJǁĞůůƐŽĨƚŚĞŝƌĂďŝůŝƚLJƚŽƉƌŽĚƵĐĞǁĂƚĞƌ͕ƚŚĞĂƉƉƌŽƉƌŝĂƚŝŽŶŵƵƐƚƐƚŽƉ ƵŶƚŝůƚŚĞǁĞůůƉƌŽƉŽƐĞƌŚĂƐƌĞͲĞƐƚĂďůŝƐŚĞĚƚŚĞĚŽŵĞƐƚŝĐǁĂƚĞƌƐƵƉƉůLJ͘ ŝǀ͘DŝŶŶĞƐŽƚĂWŽůůƵƚŝŽŶŽŶƚƌŽůŐĞŶĐLJƐƵƉĞƌĨƵŶĚƐŝƚĞ;&ƌĂŶŬůŝŶ^ƚĂƚŝŽŶ^ĞĐƚŝŽŶ ^ZϬϬϬϭϰϳϲͿŝƐůŽĐĂƚĞĚϬ͘ϮϰŵŝůĞƐĨƌŽŵƚŚĞƉƌŽƉŽƐĞĚǁĞůůƐŝƚĞƐ͘WůĞĂƐĞĐŽŶƚĂĐƚ Ϯ ƚŚĞDŝŶŶĞƐŽƚĂWŽůůƵƚŝŽŶŽŶƚƌŽůŐĞŶĐLJƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌLJŽƵƌƉƌŽƉŽƐĞĚ ĂƉƉƌŽƉƌŝĂƚŝŽŶǁŝůůĂĚǀĞƌƐĞůLJŝŵƉĂĐƚƚŚĞƉŽůůƵƚŝŽŶ͘ ǀ͘dŚƌĞĞĨŝƐŚƐƚĂƚĞƐƉĞĐŝĞƐŽĨĐŽŶĐĞƌŶĞdžŝƐƚǁŝƚŚŝŶϬ͘ϱϬŵŝůĞƐŽĨƚŚĞƉƌŽƉŽƐĞĚǁĞůů ƐŝƚĞƐ͘ ǀŝ͘dŚĞ'ŽƌĚŽŶzĞĂŐĞƌtŝůĚůŝĨĞDĂŶĂŐĞŵĞŶƚƌĞĂŝƐůŽĐĂƚĞĚǁŝƚŚŝŶϭ͘ϭϬŵŝůĞƐŽĨƚŚĞ ƉƌŽƉŽƐĞĚǁĞůůƐŝƚĞƐ͘ /ƚŝƐƌĞĐŽŵŵĞŶĚĞĚƚŚĂƚƚŚĞƉƌŽũĞĐƚĐŽŶĚƵĐƚĂŶĂƋƵŝĨĞƌƚĞƐƚĂŶĚŝŶƐƚĂůůĂĚĚŝƚŝŽŶĂů ŵŽŶŝƚŽƌŝŶŐǁĞůůƐƚŽĞǀĂůƵĂƚĞƉŽƚĞŶƚŝĂůĞĨĨĞĐƚƐĨƌŽŵƚŚĞƉƌŽƉŽƐĞĚŐĞŽƚŚĞƌŵĂůƐLJƐƚĞŵ͘ Đ͘tŚĂƚƌĞƐŽƵƌĐĞƐǁŽƵůĚďĞŝŵƉĂĐƚĞĚƐŚŽƵůĚƚŚĞŐĞŽƚŚĞƌŵĂůƐLJƐƚĞŵĨĂŝů͍ Ě͘dĞƐƚƉƵŵƉŝŶŐŝƐĞdžĞŵƉƚĨƌŽŵĂƉĞƌŵŝƚĂƐĚĞƐĐƌŝďĞĚŝŶDEZƵůĞϲϭϭϱ͘ϬϲϮϬ͘,ŽǁĞǀĞƌ͕ ĂĨƚĞƌƚŚĞƚĞƐƚƉƵŵƉŝŶŐŝƐĐŽŵƉůĞƚĞĚ͕ŝĨƚŚŽƐĞǁĞůůƐĐŽŶƚŝŶƵĞƚŽƌĞŵŽǀĞǁĂƚĞƌĨƌŽŵƚŚĞ ĂƋƵŝĨĞƌĂŶĚĂƌĞĂŶƚŝĐŝƉĂƚĞĚƚŽďĞƵƐĞĚĨŽƌůŽŶŐͲƚĞƌŵĂƉƉƌŽƉƌŝĂƚŝŽŶ͕ƚŚĞŶƚŚĞƉƌŽƉŽƐĞƌ ǁŝůůŶĞĞĚƚŽƌĞƋƵĞƐƚĂWƌĞůŝŵŝŶĂƌLJtĞůůŽŶƐƚƌƵĐƚŝŽŶƐƐĞƐƐŵĞŶƚ;WtͿƚŚƌŽƵŐŚƚŚĞ DŝŶŶĞƐŽƚĂWĞƌŵŝƚƚŝŶŐĂŶĚZĞƉŽƌƚŝŶŐ^LJƐƚĞŵ;DWZ^Ϳ͘ ŝ͘ƵƌŝŶŐƚĞƐƚƉƵŵƉŝŶŐǁĞĞŶĐŽƵƌĂŐĞƚŚĞƉƌŽƉŽƐĞƌƚŽĐŽůůĞĐƚĂŶĚƐĂǀĞǁĂƚĞƌůĞǀĞů ĚĂƚĂĨƌŽŵƉƵŵƉŝŶŐƚŚĞǁĞůůƐĂŶĚĨƌŽŵŶĞĂƌďLJǁĂƚĞƌůĞǀĞůŽďƐĞƌǀĂƚŝŽŶǁĞůůƐ͘dŚĞ EZŽĨƚĞŶƌĞƋƵĞƐƚƐƉƵŵƉŝŶŐŝŶĨŽƌŵĂƚŝŽŶ͕ǁŚŝĐŚĐĂŶďĞǀĞƌLJŚĞůƉĨƵůǁŚĞŶ ĂƐƐĞƐƐŝŶŐƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐ͘ Ğ͘dŚĞhZĚŽĞƐŶŽƚĂĚĚƌĞƐƐƚŚĞƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐĨƌŽŵůŽŶŐͲƚĞƌŵƚŚĞƌŵĂůŽƌĐŚĞŵŝĐĂů ĐŚĂŶŐĞƐƚŽƚŚĞĂƋƵŝĨĞƌďĞĐĂƵƐĞŽĨƚŚĞŐĞŽƚŚĞƌŵĂůƐLJƐƚĞŵ͘ ϱ͘WĂŐĞϯϱ͕^ĞĐƚŝŽŶϭϮ͘ϯ͘ŝǀ͘Ϯ͕KƚŚĞƌƐƵƌĨĂĐĞǁĂƚĞƌƐ͗ Ă͘WůĞĂƐĞŶŽƚĞƚŚĂƚǁŚŝůĞŶŽĞdžŝƐƚŝŶŐŽƵƚĨĂůůƐǁŝůůďĞĂůƚĞƌĞĚ͕ƚŚĞƌĞŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽ ƌĞĚƵĐĞƉĞĂŬĨůŽǁƐĨƌŽŵƚŚŝƐŵĂƐƐŝǀĞƌĞĚĞǀĞůŽƉŵĞŶƚŽƉƉŽƌƚƵŶŝƚLJ͘dŚĞEZƐƚƌŽŶŐůLJ ĞŶĐŽƵƌĂŐĞƐƚŚĞĚĞǀĞůŽƉŵĞŶƚĚĞƐŝŐŶƚŽĐŽŶƐŝĚĞƌŚŽǁĞdžŝƐƚŝŶŐŽƵƚĨĂůůƐƚŚĂƚǁŝůůďĞ ƵƚŝůŝnjĞĚĨŽƌƐƚŽƌŵǁĂƚĞƌĨƌŽŵƚŚŝƐĚĞǀĞůŽƉŵĞŶƚĐĂŶďĞƌĞĚĞƐŝŐŶĞĚŽƌĞŶŚĂŶĐĞĚƚŽ ŝŶĐŽƌƉŽƌĂƚĞƐƚŝůůŝŶŐͲďĂƐŝŶƐ͕ƐƵƌŐĞͲďĂƐŝŶƐ͕ĞŶĞƌŐLJĚŝƐƐŝƉĂƚŽƌƐ͕ŽƌŽƚŚĞƌĚĞǀŝƐĞƚŽŵŝŶŝŵŝnjĞ ĚŝƐƚƵƌďĂŶĐĞĂŶĚĞƌŽƐŝŽŶŽĨŶĂƚƵƌĂůƐŚŽƌĞůŝŶĞĂŶĚďĞĚƌĞƐƵůƚŝŶŐĨƌŽŵƉĞĂŬĨůŽǁƐ͘/ƚŝƐ ƉƌĞĨĞƌƌĞĚƚŚĂƚƐƚŽƌŵǁĂƚĞƌĨŝƌƐƚĚŝƐĐŚĂƌŐĞƐƚŽƐƚŽƌŵǁĂƚĞƌƚƌĞĂƚŵĞŶƚƉŽŶĚƐ͕ĂƌƚŝĨŝĐŝĂů ƐƚŝůůŝŶŐŽƌƐĞĚŝŵĞŶƚĂƚŝŽŶďĂƐŝŶƐŽƌŽƚŚĞƌĚĞǀŝĐĞƐĨŽƌĞŶƚƌĂƉŵĞŶƚŽĨĨůŽĂƚŝŶŐƚƌĂƐŚ͕ůŝƚƚůĞƌ͕ ƐĂŶĚ͕Ɛŝůƚ͕ĚĞďƌŝƐ͕ĂŶĚŽƌŐĂŶŝĐŵĂƚƚĞƌƉƌŝŽƌƚŽĚŝƐĐŚĂƌŐĞƚŽƉƵďůŝĐǁĂƚĞƌƐ͘tĞĞŶĐŽƵƌĂŐĞ ŵĂdžŝŵŝnjŝŶŐƵƐĞŽĨŶĂƚƵƌĂůŽƌĂƌƚŝĨŝĐŝĂůƉŽŶĚŝŶŐĂƌĞĂƐƚŽƉƌŽǀŝĚĞǁĂƚĞƌƌĞƚĞŶƚŝŽŶĂŶĚ ƐƚŽƌĂŐĞĨŽƌƚŚĞƌĞĚƵĐƚŝŽŶŽĨƉĞĂŬĨůŽǁƐŝŶƚŽƉƵďůŝĐǁĂƚĞƌƐǁŚĞƌĞĨĞĂƐŝďůĞ͘ ď͘WůĞĂƐĞĐŽŶƐŝĚĞƌƌĂŝŶŐĂƌĚĞŶƐ͕ƌŽĐŬďƵƌƌŝƚŽƐ͕ƚŚĞƌŵĂůĐŽŽůĞƌƐ͕ƐƚŽƌŵĐĞƉƚŽƌƐ͕ŽƌŽƚŚĞƌ ƵƌďĂŶŽƌŐƌĞĞŶŝŶĨƌĂƐƚƌƵĐƚƵƌĞďĞƐƚŵĂŶĂŐĞŵĞŶƚƉƌĂĐƚŝĐĞƐƚŚĂƚŬĞĞƉŝŶŵŝŶĚƚŚĞ ƚĞŵƉĞƌĂƚƵƌĞŽĨƚŚĞǁĂƚĞƌďĞĨŽƌĞĚŝƐĐŚĂƌŐŝŶŐƚŽƉƵďůŝĐǁĂƚĞƌƐ͘dŚĞƵƐĞŽĨƚŚĞƌŵĂů ĐŽŽůĞƌƐĂůůŽǁƐƐƚŽƌŵǁĂƚĞƌƚŽŝŶĨŝůƚƌĂƚĞƚŚƌŽƵŐŚƐŽŝůŵĞĚŝĂďĞĨŽƌĞĚŝƐĐŚĂƌŐŝŶŐƚŽƚŚĞ ƌŝǀĞƌ͕ƌĞĚƵĐĞƐǁĂƚĞƌƚĞŵƉĞƌĂƚƵƌĞƐďĞĨŽƌĞĞŶƚĞƌŝŶŐƚŚĞƉƵďůŝĐǁĂƚĞƌƐ͕ƌĞƚĂŝŶƐǁĂƚĞƌŽŶ ƚŚĞůĂŶĚƐĐĂƉĞ͕ƉƌŽǀŝĚĞƐĞŶĞƌŐLJĚŝƐƐŝƉĂƚŝŽŶ͕ƌĞĚƵĐĞƐĞƌŽƐŝŽŶ͕ĂŶĚĚĞĐƌĞĂƐĞƐƚŚĞƌŵĂů ŝŵƉĂĐƚƐ͘ ϲ͘WĂŐĞϯϳ͕^ĞĐƚŝŽŶϭϯŽŶƚĂŵŝŶĂƚŝŽŶͬ,ĂnjĂƌĚŽƵƐDĂƚĞƌŝĂůƐͬtĂƐƚĞƐ ϯ Ă͘,ŽǁǁŝůůƚŚĞĞdžŝƐƚŝŶŐĐŽŶƚĂŵŝŶĂƚĞĚĂƌĞĂƐďĞŝŵƉĂĐƚĞĚďLJƚŚĞƉƌŽƉŽƐĞĚŐĞŽƚŚĞƌŵĂů ƐLJƐƚĞŵĂŶĚŶĞĂƌďLJƐƵƌĨĂĐĞǁĂƚĞƌĨĞĂƚƵƌĞƐ͍ ď͘tŚĞŶĨĞĂƐŝďůĞ͕ŝƚŝƐƌĞĐŽŵŵĞŶĚĞĚƚŚĂƚƚŚĞƵƐĞŽĨŶĂƚƵƌĂůŽƌĂƌƚŝĨŝĐŝĂůƉŽŶĚŝŶŐĂƌĞĂƐďĞ ŵĂdžŝŵŝnjĞĚƚŽƉƌŽǀŝĚĞǁĂƚĞƌƌĞƚĞŶƚŝŽŶĂŶĚƐƚŽƌĂŐĞĨŽƌƚŚĞƌĞĚƵĐƚŝŽŶŽĨƉĞĂŬĨůŽǁƐŝŶƚŽ ƉƵďůŝĐǁĂƚĞƌƐ͘tŚĂƚŵĞĂƐƵƌĞƐǁŝůůďĞŝŶĐůƵĚĞĚŝŶƚŚĞƉƌŽũĞĐƚĚĞƐŝŐŶ͍ Đ͘WůĞĂƐĞĐŽŶƐŝĚĞƌƌĂŝŶŐĂƌĚĞŶƐ͕ƌŽĐŬďƵƌƌŝƚŽƐ͕ƚŚĞƌŵĂůĐŽŽůĞƌƐ͕ƐƚŽƌŵĐĞƉƚŽƌƐ͕ŽƌŽƚŚĞƌ ƵƌďĂŶŽƌŐƌĞĞŶŝŶĨƌĂƐƚƌƵĐƚƵƌĞďĞƐƚŵĂŶĂŐĞŵĞŶƚƉƌĂĐƚŝĐĞƐƚŚĂƚŬĞĞƉŝŶŵŝŶĚƚŚĞ ƚĞŵƉĞƌĂƚƵƌĞŽĨƚŚĞǁĂƚĞƌďĞĨŽƌĞĚŝƐĐŚĂƌŐŝŶŐƚŽƉƵďůŝĐǁĂƚĞƌƐ͘dŚĞƵƐĞŽĨƚŚĞƌŵĂů ĐŽŽůĞƌƐĂůůŽǁƐƐƚŽƌŵǁĂƚĞƌƚŽŝŶĨŝůƚƌĂƚĞƚŚƌŽƵŐŚƐŽŝůŵĞĚŝĂďĞĨŽƌĞĚŝƐĐŚĂƌŐŝŶŐƚŽƚŚĞ ƌŝǀĞƌ͕ƌĞĚƵĐĞƐǁĂƚĞƌƚĞŵƉĞƌĂƚƵƌĞƐďĞĨŽƌĞĞŶƚĞƌŝŶŐƚŚĞƉƵďůŝĐǁĂƚĞƌƐ͕ƌĞƚĂŝŶƐǁĂƚĞƌŽŶ ƚŚĞůĂŶĚƐĐĂƉĞ͕ƉƌŽǀŝĚĞƐĞŶĞƌŐLJĚŝƐƐŝƉĂƚŝŽŶ͕ƌĞĚƵĐĞƐĞƌŽƐŝŽŶ͕ĂŶĚĚĞĐƌĞĂƐĞƐƚŚĞƌŵĂů ŝŵƉĂĐƚƐ͘ dŚĂŶŬLJŽƵĂŐĂŝŶĨŽƌƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽƌĞǀŝĞǁƚŚŝƐĚŽĐƵŵĞŶƚ͘WůĞĂƐĞůĞƚŵĞŬŶŽǁŝĨLJŽƵŚĂǀĞĂŶLJ ƋƵĞƐƚŝŽŶƐ͘ ^ŝŶĐĞƌĞůLJ͕ DĞůŝƐƐĂŽůůŝŶƐ ZĞŐŝŽŶĂůŶǀŝƌŽŶŵĞŶƚĂůƐƐĞƐƐŵĞŶƚĐŽůŽŐŝƐƚͮĐŽůŽŐŝĐĂůĂŶĚtĂƚĞƌZĞƐŽƵƌĐĞƐ DŝŶŶĞƐŽƚĂĞƉĂƌƚŵĞŶƚŽĨEĂƚƵƌĂůZĞƐŽƵƌĐĞƐ WŚŽŶĞ͗ϲϱϭͲϮϱϵͲϱϳϱϱ ŵĂŝů͗ŵĞůŝƐƐĂ͘ĐŽůůŝŶƐΛƐƚĂƚĞ͘ŵŶ͘ƵƐ ͗<ĂƌůŽƌƌŝŐĂŶ͕ŶǀŝƌŽŶŵĞŶƚĂůŽŵƉůŝĂŶĐĞŽŽƌĚŝŶĂƚŽƌ͕DĂLJŽůŝŶŝĐ ƋƵĂůKƉƉŽƌƚƵŶŝƚLJŵƉůŽLJĞƌ ϰ ">ώώϱώ@(b´ώiaa(bώb"ώ(ib( @(b´iIiaa(b(ib( ēôώώĖIJîĖèÍťôŜώťēÍťώťēôώôŜťĖıÍťôîώſÍŜťôſÍťôŘώċīĺſώċĺŘώıôώſÍťôŘŜēôîώĺŘώæôIJôċĖťώťēôώŜÍıôώſÍťôŘώŘôŜĺŪŘèôŜώĺŘώ ĺIJîĖťĖĺIJŜîŘÍĖIJÍČôώÍŘôÍϦώīôÍŜôώŕŘĺŽĖîôώıĺŘôώîôťÍĖīŜϟώ ēôώČôĺťēôŘıÍīώŜƅŜťôıώſĖīīώIJĺťώŪťĖīĖƏôώώſÍťôŘϟώIťώſĖīīώēÍŽôώĖťŜώĺſIJώŜŪŕŕīƅώÍIJîώ ēĖŜώŜôèťĖĺIJώIJĺťôŜώťēÍťώťēôώÍŘôÍώĖŜώŜôŘŽôîώæƅώĺèēôŜťôŘώŪæīĖèώťĖīĖťĖôŜώæŪťώîĺôŜώIJĺťώĖIJîĖèÍťôώēĺſώŘôϱĖIJĤôèťĖĺIJώſôīīŜώÍIJîώŕĖŕĖIJČϟ ıŪèēώÍîîĖťĖĺIJÍīώſÍťôŘώŪŜÍČôώĖŜώŘôŗŪĖŘôîώċĺŘώťēôώŕŘĺŕĺŜôîώŕŘĺĤôèťϟώēôώŘôŕĺŘťώIJĺťôŜώťēôώČôĺťēôŘıÍīώ ŜƅŜťôıώſĖīīώČôIJôŘÍťôώ͓͑͒Ϡ͏͏͏Ϡ͏͏͏ώČÍīīĺIJŜϟώIŜώťēĖŜώťēôώŽĺīŪıôώĺċώſÍťôŘώŘôŗŪĖŘôîώťĺώŜŪŕŕīƅώťēôώēôώ͓͑͒Ϡ͏͏͏Ϡ͏͏͏ώČÍīϯƅŘώĖŜώċĺŘώťēôώċŪīīώæŪĖīîĺŪťώĺċώťēôώŜèôIJÍŘĖĺώôŽÍīŪÍťôîώĖIJώťēôώ îôŽôīĺŕıôIJťώŕŘĺŕĺŜÍīώŪIJîôŘώťēôώċŪīīώæŪĖīîώŜèôIJÍŘĖĺϦώ®ĖīīώÍîîĖťĖĺIJÍīώŘôŜĺŪŘèôŜώæôώŘôŗŪĖŘôîώċŘĺıώϟώīīώČŘĺŪIJîώſÍťôŘώŕŪıŕôîώċŘĺıώťēôώŜŪŕŕīƅώſôīīŜώſĖīīώæôώŘôťŪŘIJôîώťĺώťēôώ ĺťēôŘώſÍťôŘώŜŪŕŕīƅώſôīīŜώťĺώÍŪČıôIJťώťēôώČôĺťēôŘıÍīώſÍťôŘώŜŪŕŕīƅώŜĺŪŘèôŜϦώIċώŜĺϠώſēÍťώÍŘôώťēĺŜôώŜÍıôώÍŗŪĖċôŘώŽĖÍώťēôώŘôϱĖIJĤôèťĖĺIJώſôīīŜώÍIJîώťēôŘôċĺŘôώťēôώĺŕôIJώīĺĺŕώŜƅŜťôıώĖŜώ îôťÍĖīŜϦώ®ēÍťώÍŘôώťēôώŕŘĺŕĺŜôîώÍîîĖťĖĺIJÍīώîôıÍIJîŜϦώīôÍŜôώîôŜèŘĖæôώťēôώſÍťôŘώIJôôîŜώċĺŘώťēĖŜώîôŜĖČIJôîώÍŜώÍώIJĺIJϱèĺIJŜŪıŕťĖŽôώŪŜôώĺċώČŘĺŪIJîſÍťôŘϟώēôώIJôôîώċĺŘώÍîîĖťĖĺIJÍīώ ŕŘĺŕĺŜÍīϟώſÍťôŘώŜŪŕŕīƅώèĺIJŜŪŕťĖĺIJώċŘĺıώťēôώıŪIJĖèĖŕÍīώſÍťôŘώŜŪŕŕīƅώċĺŘώÍIJƅώċŪťŪŘôώaÍƅĺώ ċÍèĖīĖťĖôŜώſĖīīώæôώîôťôŘıĖIJôîώîŪŘĖIJČώċĖIJÍīώîôŜĖČIJώĺċώťēĺŜôώċÍèĖīĖťĖôŜϟώ "ŪŘĖIJČώťēôώťôŜťώſôīīώîŘĖīīĖIJČώŕēÍŜôϠώÍώŕŘôīĖıĖIJÍŘƅώŜŪŕŕīƅώŕŪıŕĖIJČώťôŜťώſÍŜώîĺIJôώ ĺIJώťēôώŘÍĖŘĖôώîŪώēĖôIJώÍŗŪĖċôŘϢώťôŜťώŘôŜŪīťŜώÍŘôώŕôIJîĖIJČϟώîîĖťĖĺIJÍīīƅϠώťēôώ ®ĺIJôſĺèϯŪIJIJôīώĖťƅώÍŗŪĖċôŘώſÍŜώIJĺťώèĺIJŜĖîôŘôîώťĺώæôώÍώċôÍŜĖæīôώŜĺŪŘèôώĺċώ ſÍťôŘώċĺŘώťēôώĺŕôIJώīĺĺŕώŜƅŜťôıώĖIJώťēôώċôÍŜĖæĖīĖťƅώŜťŪîƅώèĺıŕīôťôîώċĺŘώťēôώŕŘĺĤôèťώ ŗŪĖċôŘώŜĺŪŘèôώĖŜώĖıŕĺŘťÍIJťώċĺŘώťēĖŜώŕĺťôIJťĖÍīώŕŘĺĤôèťϟώIIJώŕŘôŽĖĺŪŜώîĖŜèŪŜŜĖĺIJŜϠώ"bώēÍŜώÍîŽĖŜôîώ îŪôώťĺώīĺſώƅĖôīîŜώċŘĺıώŕŘôŽĖĺŪŜώώŕŪıŕĖIJČώťôŜťŜϟ ŕŘĺĤôèťώèĺIJŜŪīťÍIJťŜώťēÍťώťēôώaĺŪIJťώĖıĺIJϱFĖIJèħīôƅώÍŗŪĖċôŘώèÍIJIJĺťώæôώŪŜôîώċĺŘώČôĺťēôŘıÍīϠώÍŜώťēôώ aťϟώĖıĺIJώĖŜώŘôŜťŘĖèťôîώťĺώŕĺťÍæīôώſÍťôŘώŪŜôŜώĺIJīƅϟώIIJώÍîîĖťĖĺIJϠώťēôŘôώÍŘôώŕĺťôIJťĖÍīώèĺIJèôŘIJŜώſĖťēώ IJώÍŗŪĖċôŘώťôŜťώĖŜώæôĖIJČώèĺIJîŪèťôîϠώſĖťēώÍώŜôťώĺċώĖIJŜťÍīīôîώťôŜťώſôīīŜώϼĺIJôώŜŪŕŕīƅώ ŪŜĖIJČώťēôώVĺŘîÍIJώÍŗŪĖċôŘώċĺŘώČôĺťēôŘıÍīώĺŘώċĺŘώċŪťŪŘôώſÍťôŘώŜŪŕŕīƅώċĺŘώıŪīťĖŕīôώŘôÍŜĺIJŜϠώĖIJèīŪîĖIJČώ ÍIJîώĺIJôώĖIJĤôèťĖĺIJώſôīīϽώÍŜώſôīīώÍŜώĺæŜôŘŽÍťĖĺIJώċŘĺıώÍώŜôŕÍŘÍťôώıĺIJĖťĺŘĖIJČώſôīīϟώ æŪťώIJĺťώīĖıĖťôîώťĺϡώŕĺťôIJťĖÍīώîŘĖIJħĖIJČώſÍťôŘώĖıŕÍèťŜϠώċŪťŪŘôώÍŗŪĖċôŘώŜŪŜťÍĖIJÍæĖīĖťƅώÍIJîώŜŪŘċÍèôώſÍťôŘώ ēôώŘôŜŪīťŜώĺċώťēôώÍŗŪĖċôŘώťôŜťώſĖīīώîôťôŘıĖIJôώťēôώēƅîŘÍŪīĖèώèēÍŘÍèťôŘĖŜťĖèŜώĺċώťēôώ ċôÍťŪŘôώĖıŕÍèťŜϟώēôώ®ĺIJôſĺèϯŪIJIJôīώĖťƅώıÍƅώæôώÍώıĺŘôώŜŪĖťÍæīôώÍīťôŘIJÍťĖŽôώċĺŘώŕŘĺĤôèťώ VĺŘîÍIJώŗŪĖċôŘϠώĖIJèīŪîĖIJČώƏĺIJôώĺċώĖIJċīŪôIJèôώÍIJîώĺċώťēôώŜŪŕŕīƅώÍIJîώĖIJĤôèťĖĺIJώſôīīŜϟώ ŕŘĺŕĺŜôŘώťĺώôŽÍīŪÍťôώÍIJîώèĺIJŜĖîôŘϟώēôώώîĺôŜώIJĺťώôīÍæĺŘÍťôώſēƅώťēôώ®ĺIJôſĺèϯŪIJIJôīώĖťƅώ ēôώŘôŜŪīťŜώſĖīīώæôώîôťÍĖīôîώĖIJώÍώŜŪııÍŘƅώŘôŕĺŘťώÍIJîώèĖŘèŪīÍťôîώċĺŘώŘôŽĖôſϠώ ÍŗŪĖċôŘώſĺŪīîώIJĺťώƅĖôīîώťēôώŘôŜŪīťŜώIJôèôŜŜÍŘƅϠώIJĺŘώîĺôŜώĖťώôƄŕīÍĖIJώēĺſώťēĖŜώŕŘĺŕĺŜÍīώèĺŪīîώıĺŽôώ ĖIJèīŪîĖIJČώťĺώťēôώ"bϟ ċĺŘſÍŘîώſĖťēĺŪťώÍώČôĺťēôŘıÍīώŜƅŜťôıώĺŘώèĺIJŜĖîôŘώĺťēôŘώÍīťôŘIJÍťĖŽôŜώſĖťēĺŪťώČôĺťēôŘıÍīϟώīôÍŜôώ èĺIJŜĖîôŘώĺťēôŘώÍīťôŘIJÍťĖŽôώſÍťôŘώŜŪŕŕīƅώŜĺŪŘèôŜώÍŜώťēôώŕŘĺĤôèťώîôŜĖČIJώıĺŽôŜώċĺŘſÍŘîϟώ ®ÍťôŘώŕŕŘĺŕŘĖÍťĖĺIJϯ®ÍťôŘώ Ūŕŕīƅ iIJώaÍƅώ͖͑Ϡώ͑͏͓͑ώ@ĺŽϟώ®ÍīƏώŜĖČIJôîώĖIJťĺώīÍſώÍIJώŪŕîÍťôîώŜťÍťŪťôώĺċώ͐͏͒͐ϟ͕͑͐ώťēÍťώ ÍīīĺſŜώ@("ŜώČŘôÍťôŘώťēÍIJώ͔͏ώČŕıϟ ēôώÍŗŪĖċôŘώťôŜťώĖŜώæôĖIJČώèĺIJîŪèťôîώťēÍťώſĖīīώĖîôIJťĖċƅώťēôώƏĺIJôώĺċώĖIJċīŪôIJèôώťēôώ ŕĺťôIJťĖÍīώĖıŕÍèťŜώťĺώťēôώŘôŜĺŪŘèôŜώĺŪťīĖIJôîώēôŘôϟώēôώŜŪııÍŘƅώŘôŕĺŘťώċŘĺıώťēĖŜώ ťôŜťĖIJČώſĖīīώæôώèĖŘèŪīÍťôîώċĺŘώŘôŽĖôſϠώĖIJèīŪîĖIJČώťĺώ"bϟώIċώŕĺťôIJťĖÍīώċĺŘώĖıŕÍèťώĖŜώ ĖîôIJťĖċĖôîϠώťēôώČôĺťēôŘıÍīώîôŜĖČIJώſĖīīώæôώıĺîĖċĖôîϟ abώ"ôŕÍŘťıôIJťώĺċώbÍťŪŘÍīώôŜĺŪŘèôŜ ēôώĺŕôIJώīĺĺŕώŜƅŜťôıώſĖīīώæôώèĺIJťĖIJŪĺŪŜīƅώıĺIJĖťĺŘôîώÍIJîώŘĺŪťĖIJôīƅώıÍĖIJťÍĖIJôîώ ®ēÍťώŘôŜĺŪŘèôŜώſĺŪīîώæôώĖıŕÍèťôîώŜēĺŪīîώťēôώČôĺťēôŘıÍīώŜƅŜťôıώċÍĖīϦώ ťĺώŕŘôŽôIJťώŜƅŜťôıώċÍĖīŪŘôŜϟ ôŜťώŕŪıŕĖIJČώĖŜώôƄôıŕťώċŘĺıώÍώŕôŘıĖťώÍŜώîôŜèŘĖæôîώĖIJώabώŪīôώ͕͔͐͐ϟ͏͕͑͏ϟώFĺſôŽôŘϠώÍċťôŘώťēôώťôŜťώ ŕŪıŕĖIJČώĖŜώèĺıŕīôťôîϠώĖċώťēĺŜôώſôīīŜώèĺIJťĖIJŪôώťĺώŘôıĺŽôώſÍťôŘώċŘĺıώťēôώÍŗŪĖċôŘώÍIJîώÍŘôώ ÍIJťĖèĖŕÍťôîώťĺώæôώŪŜôîώċĺŘώīĺIJČϱťôŘıώÍŕŕŘĺŕŘĖÍťĖĺIJϠώťēôIJώťēôώŕŘĺŕĺŜôŘώſĖīīώIJôôîώťĺώŘôŗŪôŜťώÍώ ŘôīĖıĖIJÍŘƅώ®ôīīώĺIJŜťŘŪèťĖĺIJώŜŜôŜŜıôIJťώϼ®ϽώťēŘĺŪČēώťēôώaĖIJIJôŜĺťÍώôŘıĖťťĖIJČώÍIJîώ bĺťôîϟώīīώIJôèôŜŜÍŘƅώŕôŘıĖťŜώÍIJîώÍŕŕŘĺŽÍīŜώſĖīīώæôώĺæťÍĖIJôîώċĺŘώťēôώČôĺťēôŘıÍīώ ôŕĺŘťĖIJČώƅŜťôıώϼaϽϟώ ŜƅŜťôıϟ Ėϟώ"ŪŘĖIJČώťôŜťώŕŪıŕĖIJČώſôώôIJèĺŪŘÍČôώťēôώŕŘĺŕĺŜôŘώťĺώèĺīīôèťώÍIJîώŜÍŽôώſÍťôŘώīôŽôīώîÍťÍώċŘĺıώ ŕŪıŕĖIJČώťēôώſôīīŜώÍIJîώċŘĺıώIJôÍŘæƅώſÍťôŘώīôŽôīώĺæŜôŘŽÍťĖĺIJώſôīīŜϟώēôώ"bώĺċťôIJώŘôŗŪôŜťŜώ ŕŪıŕĖIJČώĖIJċĺŘıÍťĖĺIJϠώſēĖèēώèÍIJώæôώŽôŘƅώēôīŕċŪīώſēôIJώÍŜŜôŜŜĖIJČώŕĺťôIJťĖÍīώĖıŕÍèťŜϟώ [ĺIJČώťôŘıώťēôŘıÍīώĖıŕÍèťŜώÍŘôώŕīÍIJIJôîώťĺώæôώıĖťĖČÍťôîώŽĖÍώŪťĖīĖƏĖIJČώťēĖŜώ ČôĺťēôŘıÍīώŜƅŜťôıώĖIJώÍώIJôťώƏôŘĺώťēôŘıÍīώèÍŕÍèĖťƅϠώıôÍIJĖIJČώťēôώæťŪϯŜώťēÍťώÍŘôώ ŕŪťώĖIJťĺώťēôώÍŗŪĖċôŘώîŪŘĖIJČώťēôώŜŪııôŘώÍŘôώŕīÍIJIJôîώťĺώæôώôƄťŘÍèťôîώîŪŘĖIJČώťēôώ ēôÍťĖIJČώŜôÍŜĺIJϟώēôώŕŘĺĤôèťώēÍŜώŘôťÍĖIJôîώÍώČôĺώèēôıĖŜťώťĺώŕŘĺŽĖîôώÍώ ēôώώîĺôŜώIJĺťώÍîîŘôŜŜώťēôώŕĺťôIJťĖÍīώĖıŕÍèťŜώċŘĺıώīĺIJČϱťôŘıώťēôŘıÍīώĺŘώèēôıĖèÍīώèēÍIJČôŜώťĺώ ČôĺèēôıĖèÍīώôŽÍīŪÍťĖĺIJώĺċώŕĺťôIJťĖÍīώťôıŕôŘÍťŪŘôώèēÍIJČôŜώĖIJώťôēώÍŗŪĖċôŘώîŪôώťĺώ ťēôώÍŗŪĖċôŘώæôèÍŪŜôώĺċώťēôώČôĺťēôŘıÍīώŜƅŜťôıϟώ ťēôώŜƅŜťôıώĺŕôŘÍťĖĺIJϟ ">ώώϱώ@(b´ώiaa(bώb"ώ(ib( @(b´iIiaa(b(ib( īôÍŜôώIJĺťôώťēÍťώſēĖīôώIJĺώôƄĖŜťĖIJČώĺŪťċÍīīŜώſĖīīώæôώÍīťôŘôîϠώťēôŘôώĖŜώÍIJώĺŕŕĺŘťŪIJĖťƅώťĺώŘôîŪèôώŕôÍħώ ċīĺſŜώċŘĺıώťēĖŜώıÍŜŜĖŽôώŘôîôŽôīĺŕıôIJťώĺŕŕĺŘťŪIJĖťƅϟώēôώ"bώŜťŘĺIJČīƅώôIJèĺŪŘÍČôŜώťēôώ "ôŜèŘĖŕťĖĺIJώēÍŜώæôôIJώôƄŕÍIJîôîώťĺώIJĺťôώťēÍťώŪIJîôŘČŘĺŪIJîώîôťôIJťĖĺIJώŜƅŜťôıŜώſĖīīώ îôŽôīĺŕıôIJťώîôŜĖČIJώťĺώèĺIJŜĖîôŘώēĺſώôƄĖŜťĖIJČώĺŪťċÍīīŜώťēÍťώſĖīīώæôώŪťĖīĖƏôîώċĺŘώŜťĺŘıſÍťôŘώċŘĺıώťēĖŜώ ŕŘĺŽĖîôώťŘôÍťıôIJťώÍIJîώŘÍťôώèĺIJťŘĺīϟώIJƅώĺċċŜĖťôώŘôŜώæôċĺŘôώôIJťôŘĖIJČώťēôώŕŪæīĖèώ ſÍťôŘŜϠώŘôťÍĖIJŜώſÍťôŘώĺIJώťēôώīÍIJîŜèÍŕôϠώŕŘĺŽĖîôŜώôIJôŘČƅώîĖŜŜĖŕÍťĖĺIJϠώŘôîŪèôŜώôŘĺŜĖĺIJϠώÍIJîώ îôèŘôÍŜôŜώťēôŘıÍīώĖıŕÍèťŜϟ ēôώĖIJťôIJťώĺċώťēôώČôĺťēôŘıÍīώŕĺŘťĖĺIJώĺċώťēôώŕŘĺĤôèťώĖŜώťĺώIJĺťώĖıŕÍèťώèĺIJťÍıĖIJÍťôîώ ÍŘôÍŜώŽĖÍώèĺIJŜťŘŪèťĖIJČώťēôώŜŪŕŕīƅώÍIJîώĖIJĤôèťĖĺIJώſôīīŜώĖIJώÍèèĺŘîÍIJèôώſĖťēώabώ ťÍťŪťôŜϠώſēĖèēώĖIJèīŪîôŜώÍIJώĖIJIJôŘώÍIJîώĺŪťôŘώèÍŜĖIJČώſĖťēώċŪīīώČŘĺŪťĖIJČϟώIJÍīƅŜĖŜώĺċώ FĺſώſĖīīώťēôώôƄĖŜťĖIJČώèĺIJťÍıĖIJÍťôîώÍŘôÍŜώæôώĖıŕÍèťôîώæƅώťēôώŕŘĺŕĺŜôîώČôĺťēôŘıÍīώŜƅŜťôıώÍIJîώ ťēôώƏĺIJôώĺċώĖIJċīŪôIJèôώċŘĺıώťēôώťôŜťώŕŪıŕĖIJČώŕŘĺČŘÍıώſĖīīώÍĖîώĖIJώĖîôIJťĖċƅĖIJČώÍIJƅώ IJôÍŘæƅώŜŪŘċÍèôώſÍťôŘώċôÍťŪŘôŜϦώ èĺIJťÍıĖIJÍťôîώÍŘôÍŜώťēÍťώIJôôîώċŪŘťēôŘώŜťŪîƅϟ ēôώŕŘĺŕĺŜôîώŜťĺŘıſÍťôŘώ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³3URMHFW´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¶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