FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN
Transcription
FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN
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±6HS ±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±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±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¶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±$ERYH\HDUV ±\HDUVEHORZ )*930 6HODQFDUHVWDWH QG VW )*930 6HODQFDUHVWDWH QG VW )*930 6HODQFDUHVWDWH QG VW 7RWDO 6XPPDU\RI/DQG8VH&RQVHUYDWLRQDQG+&9$UHDV 7KHVXPPDU\RI&RQVHUYDWLRQDQG+&9$UHDVDVLGHQWLILHGLQ..66HODQFDU%*URXSLQJGXULQJWKLVDVVHVVPHQW LVDVVKRZQLQ7DEOHEHORZ 7DEOH&RQVHUYDWLRQDQG+&9$UHDV 6WDWHPHQWRI/DQG8VH+D 3ODQWHG$UHDKD±2LO3DOP 0DWXUH ,PPDWXUH &RQVHUYDWLRQ$UHDKD +&9$UHDKD FRPSULVLQJEXIIHU]RQHVDORQJVPDOOVWUHDPVKLOO\DUHDV VZDPS\DQGXQSODQWDEOHDUHDV FRPSULVLQJEXIIHU]RQHVQHDUIRUHVWUHVHUYHVZDWHU FDWFKPHQWVEXULDOUHOLJLRXVVLWHV +HFWDUDJH+D +HFWDUDJH+D 2WKHUFHUWLILFDWLRQVKHOGDQG8VHRI56327UDGHPDUNV 3UHVHQWO\ ..6 6HODQFDU %*URXSLQJ KROGV YDOLG ,62 ,62 DQG 2+6$6 FHUWLILFDWLRQV IRU WKH 3DOP 2LO 0LOO 7KH 5632¶V WUDGHPDUNV DQG ORJR DUH QRW XVHG E\ WKH 308 DXGLWHG ,QVWUXFWLRQV IRU XVH ZHUH SURYLGHGDQGDFNQRZOHGJHGE\WKH308WKURXJKDVLJQHG0HPRUDQGXPRIFRPPLWPHQWDJUHHLQJWRDGKHUHWRWKH ODWHVW³56325XOHVRQ&RPPXQLFDWLRQV&ODLPV´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±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±'HF $FWXDO (VWDWH6XSSOLHU ))%3URFHVVHGLQ -DQ±'HF $FWXDO3URMHFWHG 07 07 ))%3URFHVVHGIRU -DQ±'HF 3URMHFWHG 07 &HUWLILHG))%IURP6HODQFDU% 308HVWDWHV &HUWLILHG))%IURPRWKHU FHUWLILHG)HOGD308HVWDWHV 1RQFHUWLILHG))%IURP2&3 7RWDO 6&&60RGHOIRU320 0% 0% 0% 7KHDQQXDOFHUWLILHGWRQQDJHVRI&32DQG3.SURGXFWLRQE\WKH308*URXSLQJDVDVVHVVHGDQGYHULILHG GXULQJWKLVFXUUHQWDVVHVVPHQWDQGSURMHFWHGIRUQH[W\HDUDUHGHWDLOHGDVIROORZV 7DEOH&RPSDULVRQRI&HUWLILHG7RQQDJHV2QO\ 320 7RWDOFHUWLILHG))% 3URFHVVHG07 -DQ±'HF $FWXDO -DQ±'HF $FWXDO3URMHFWHG -DQ±'HF 3URMHFWHG 7RWDOFHUWLILHG&32 3URGXFWLRQ07 2(5 2(5 2(5 7RWDOFHUWLILHG3. 3URGXFWLRQ07 .(5 .(5 .(5 1RWH7KH320KDVHVWDEOLVKHGDQGPDLQWDLQHGSURFHGXUHVIRUWKHERRNNHHSLQJDQGPRQLWRULQJUHTXLUHPHQWVIRU WKH&32DWWKHPLOO,WLVYHULILHGWKH320KDVSURFHGXUHVIRUWKHµ0DVV%DODQFH±0%´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¶VUHVSRQVHWRWKH:DOO6WUHHW-RXUQDO:6-DUWLFOH-XO KWWSZZZIHOGDJOREDOFRPIJYVUHVSRQVHWRWKHZDOOVWUHHWMRXUQDOZVMDUWLFOH ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI )*9&ODULILHVRQ:DOO6WUHHW-RXUQDO$OOHJDWLRQVRI$EXVHVRI0DOD\VLDQ3ODQWDWLRQV$XJ KWWSZZZIHOGDJOREDOFRPIJYFODULILHVRQZDOOVWUHHWMRXUQDODOOHJDWLRQVRIDEXVHVRIPDOD\VLDQ SODQWDWLRQVVWKDVKYVG6(3TSGSXI ,QWHUWHNKDGDOVRUHIHUUHGWRWKH5632¶V&RPSODLQWVZHEVLWHIRUWKHODWHVWXSGDWHRQDQ\FDVHVRIFRPSODLQWVILOHG DJDLQVW)HOGD)*930XQGHUWKHZHEOLQNEHORZ /DQGGLVSXWHFODLPDW/DKDG'DWX6DEDKDJDLQVW)(/'$ILOHGE\5632RQ)HE KWWSZZZUVSRRUJPHPEHUVVWDWXVRIFRPSODLQWV"NH\ZRUGV )(/'$FRXQWU\ FDWHJRU\ KWWSZZZUVSRRUJPHPEHUVFRPSODLQWVVWDWXVRIFRPSODLQWVYLHZ %DVHG RQ ,QWHUWHN¶V UHYLHZ RQ WKH SURJUHVV PDGH WRGDWH )*930 LV FRQVLGHUHG WR KDYH PDLQWDLQHG LWV FRPPLWPHQWXQGHUWKH3DUWLDOFHUWLILFDWLRQUHTXLUHPHQWVWRHQVXUHWKDWWKHUHZHUHQRVLJQLILFDQWODQGFRQIOLFWV QR UHSODFHPHQW RI SULPDU\ IRUHVW RU DQ\ DUHD FRQWDLQLQJ +&9V VLQFH 1RY QR ODERXU GLVSXWHV WKDW DUH QRW EHLQJ UHVROYHG WKURXJK DQ DJUHHG SURFHVV QR HYLGHQFH RI QRQFRPSOLDQFH ZLWK ODZ LQ DQ\ RI WKH QRQFHUWLILHG KROGLQJV )*930KDGDOVRXSGDWHGLW¶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¥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¶ LQWHUYLHZV ZHUH FRQGXFWHG GXULQJ WKH DVVHVVPHQW DQG IHHGEDFN REWDLQHG DV SDUW RI LQIRUPDWLRQ DQG HYLGHQFH JDWKHULQJ 6HH VHFWLRQ 3URFHVVRIVWDNHKROGHUFRQVXOWDWLRQ ..66HODQFDU%*URXSLQJ320ZDVDOVRDVVHVVHGDJDLQVWWKHUHTXLUHPHQWVRI56326XSSO\&KDLQ&HUWLILFDWLRQ 6WDQGDUG IRU &32 PLOO 7KLV SDUW RI WKH DVVHVVPHQW FRYHUHG WKH YHULILFDWLRQ RI LPSOHPHQWDWLRQ RI GRFXPHQWHG SURFHGXUHVDQGDYDLODELOLW\RIUHFRUGVWRGHPRQVWUDWHFRPSOLDQFHDJDLQVWDOOWKHHOHPHQWVIRUWKHµ0DVV%DODQFH¶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¶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¶V UHVSRQVHDQGIHHGEDFNUHFHLYHGZHUHIROORZHGXSDFFRUGLQJO\ 'XULQJ WKH DVVHVVPHQW VWDNHKROGHUV ZHUH LQWHUYLHZHG DQG WKHLU IHHGEDFNV ZHUH UHFRUGHG $PRQJ WKH VWDNHKROGHUV FRQVXOWHG ZHUH ZRUNHUV WUDGH XQLRQ OHDGHUV ZRPHQ UHSUHVHQWDWLYHV ORFDO FRPPXQLW\ OHDGHUV UHSUHVHQWDWLYHVRIJRYHUQPHQWGHSDUWPHQWVDJHQFLHV1*2VVXSSOLHUVDQGFRQWUDFWRUV 'HWDLOVRQVWDNHKROGHUV¶IHHGEDFN308UHVSRQVHDQG,QWHUWHNYHULILFDWLRQFRPPHQWVDUHSURYLGHGLQVHFWLRQ $PRQJWKHOLVWRINH\VWDNHKROGHUVFRQVXOWHGZDVWKHIROORZLQJ *RYHUQPHQW$JHQFLHVE\HPDLOV 'HSDUWPHQWRI/DQGV$QG0LQHV 'HSDUWPHQWRI(QYLURQPHQW 'HSDUWPHQWRI)RUHVWU\3HQLQVXODU0DOD\VLD 'HSDUWPHQWRI,PPLJUDWLRQ 'HSDUWPHQWRI,UULJDWLRQ'UDLQDJH 'HSDUWPHQWRI/DERXU 'HSDUWPHQWRI2FFXSDWLRQDO6DIHW\+HDOWK 'HSDUWPHQWRI2UDQJ$VOL$IIDLUV 'HSDUWPHQWRI:LOGOLIH1DWLRQDO3DUNV *RYHUQPHQW$JHQFLHV6WDWHE\HPDLOV 'HSDUWPHQWRI(QYLURQPHQW3DKDQJ 'HSDUWPHQWRI)RUHVWU\3DKDQJ 'HSDUWPHQWRI,PPLJUDWLRQ±3DKDQJ 'HSDUWPHQWRI,UULJDWLRQ'UDLQDJH3DKDQJ 'HSDUWPHQWRI/DERXU±3DKDQJ 'HSDUWPHQWRI2FFXSDWLRQDO6DIHW\+HDOWK±3DKDQJ 'HSDUWPHQWRI:LOGOLIH1DWLRQDO3DUNV±3DKDQJ /DQGDQG0LQHV2IILFH±3DKDQJ 3HUWXEXKDQ.HVHODPDWDQ6RVLDO62&62±3DKDQJ 6WDWXWRU\%RGLHVE\HPDLOV 0DOD\VLDQ3DOP2LO%RDUG032% 0DOD\VLDQ3DOP2LO%RDUG032%6RXWKHUQ5HJLRQ 0DOD\VLDQ3DOP2LO%RDUG032%(DVWHUQ5HJLRQ 0DOD\VLD3DOP2LO$VVRFLDWLRQ032$ 0DOD\VLD3DOP2LO$VVRFLDWLRQ.XDOD/XPSXU032$ 1*2VE\HPDLOV $OO:RPHQ¶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³6XUXKDQMD\D7HQDJD´ 'DWHRISXEOLFQRWLILFDWLRQRIWKHPDLQDVVHVVPHQWRIWKH308 ZDVPDGHRQ$XJ 1RUHTXHVWIRULQIRUPDWLRQIURPVWDNHKROGHUVIRUWKLV308 5HFRUGVRIUHTXHVWVIRU LQIRUPDWLRQDQGUHVSRQVHVVKDOO EHPDLQWDLQHG 0DMRU&RPSOLDQFH 7KH308PDLQWDLQHGDVLWHVSHFLILFOLVW0/$/)RI LQWHUQDOVWDNHKROGHUVH[WHUQDOVWDNHKROGHUVJRYHUQPHQW GHSDUWPHQWVDJHQFLHVFRQVXOWDQWVFRQWUDFWRUVVXSSOLHUV WUDQVSRUWHUVHWF 7KHOLVWRIVWDNHKROGHUVLVWREHXSGDWHGZKHQHYHU QHFHVVDU\ $6WDNHKROGHUV¶&RQVXOWDWLRQZLWKH[WHUQDOVWDNHKROGHUVIRU WKH308ZDVFDUULHGRXWRQDQGKDVEHHQ YHULILHGGXULQJWKH0DLQ$VVHVVPHQWZLWKUHFRUGVRI VWDNHKROGHUV¶IHHGEDFNPDLQWDLQHGSRVLWLYHDQGQHJDWLYH DQGPDQDJHPHQWDFWLRQSODQUHFRUGHG 7KH320DQGHVWDWHVDOVRREWDLQHGIHHGEDFNIURPLQWHUQDO DQGH[WHUQDOVWDNHKROGHUVWKURXJKVXUYH\TXHVWLRQQDLUHDQG VXPPDU\RIVWDNHKROGHUV¶IHHGEDFNLVDYDLODEOH$FWLRQSODQ LGHQWLILHGIRULPSOHPHQWDWLRQ7KXVWKHFRUUHFWLYHDFWLRQ WDNHQRQSUHYLRXVDVVHVVPHQW0LQRU1&2&/ YHULILHGWREHHIIHFWLYH &RPSOLDQFH &RPSOLHG &ULWHULRQ 0DQDJHPHQWGRFXPHQWVDUHSXEOLFO\DYDLODEOHH[FHSWZKHUHWKLVLVSUHYHQWHGE\FRPPHUFLDOFRQILGHQWLDOLW\RU ZKHUHGLVFORVXUHRILQIRUPDWLRQZRXOGUHVXOWLQQHJDWLYHHQYLURQPHQWDORUVRFLDORXWFRPHV ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH 0DQDJHPHQWGRFXPHQWVWKDW 7KHRUJDQL]DWLRQ¶VSROLFLHVGHFODUHGWKDWXSRQUHTXHVWWKH DUHPDGHDYDLODEOHWRWKHSXEOLF IROORZLQJW\SHVRIPDQGDWRU\GRFXPHQWVDUHDYDLODEOHWRWKH VKDOOLQFOXGHEXWDUHQRW SXEOLF QHFHVVDULO\OLPLWHGWR xODQGWLWOHVXVHUULJKWV 0DMRU&RPSOLDQFH xRFFXSDWLRQDOKHDOWKDQGVDIHW\SODQ xSODQVDQGLPSDFWDVVHVVPHQWVUHODWLQJWRHQYLURQPHQWDQG &RPSOLDQFH &RPSOLHG ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI VRFLDOLPSDFWV xSROOXWLRQSUHYHQWLRQSODQV xGHWDLOVRIFRPSODLQWVJULHYDQFHV xQHJRWLDWLRQSURFHGXUHV xFRQWLQXRXVLPSURYHPHQWSODQ x3XEOLFVXPPDU\RIFHUWLILFDWLRQDVVHVVPHQWUHSRUW x+XPDQ5LJKWV3ROLF\ 7KHVHSXEOLFO\DYDLODEOHGRFXPHQWVLQFOXGHNH\LQGLFDWRUVRI SHUIRUPDQFHOLNHZDVWHPDQDJHPHQWDQGGLVSRVDOSODQVIRU WKHPLOODQGHVWDWHV $OVR&RQWLQXDO,PSURYHPHQW$FWLRQ3ODQVLQFOXGHWDUJHWVIRU ZDVWHUHGXFWLRQDQGSROOXWLRQSUHYHQWLRQ x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x 'HFLGLQJWKH$VVHVVRU x *DWKHULQJLQIRUPDWLRQDERXWFKHPLFDOVZDVWHDQG ZRUNSUDFWLFHV x 'LYLGHLQWRZRUNXQLWV x 'HWHUPLQHGHJUHHRIKD]DUGV x (YDOXDWHH[SRVXUH x $VVHVVDGHTXDF\RIFRQWUROPHDVXUHV x &RQFOXGHWKHDVVHVVPHQW x ,GHQWLI\DFWLRQVWREHWDNHQ x 5HSRUWLQJWKHDVVHVVPHQW x 5HYLHZDVVHVVPHQW 320LVFHUWLILHGWR26+$320KDVFRQGXFWHGWKH (PHUJHQF\3UHSDUHGQHVV(53 6DIHW\&RPPLWWHHPHHWLQJVKHOGTXDUWHUO\ 3URJUDPPHVIRUSURWHFWLQJZRUNHUV¶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³%XNX$GXDQ´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³3ROLVL+DN$VDVL0DQXVLD´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±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³6XUXKDQMD\D7HQDJD´ 9DOLGOLFHQVHVIRUDXWKRUL]HGJDVWHVWHU$&7DXWKRUL]HG HQWUDQWDQGVWDQGE\E\SHUVRQIRUFRQILQHGVSDFHDFWLYLWLHVLQ 320 &RPSOLHG ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI 2FFXSDWLRQDO+HDOWKDQG6DIHW\$FW±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¶GHFLVLRQV WRJLYHRUZLWKKROGWKHLUFRQVHQWWR WKHRSHUDWLRQDWWKHWLPHWKDWWKLV GHFLVLRQZDVWDNHQ F(YLGHQFHWKDWWKHOHJDO HFRQRPLFHQYLURQPHQWDODQG VRFLDOLPSOLFDWLRQVIRUSHUPLWWLQJ RSHUDWLRQVRQWKHLUODQGKDYHEHHQ XQGHUVWRRGDQGDFFHSWHGE\ DIIHFWHGFRPPXQLWLHVLQFOXGLQJ WKHLPSOLFDWLRQVIRUWKHOHJDOVWDWXV RIWKHLUODQGDWWKHH[SLU\RIWKH FRPSDQ\¶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³SHUPLWWRZRUNV\VWHP´IRUWKHPLOO5HFRUGVRIµ3HUPLWWR :RUN¶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±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¶V623 0LQRU&RPSOLDQFH 3ODQWLQJWHUUDFHVFRQVWUXFWHGRQODQGZLWKVORSHPRUHWKDQ 5HFRUGVDQGPDSVRQWHUUDFHVFRQVWUXFWHGKDGEHHQYHULILHG RQWKHHVWDWHV7KHUHDUHWZRDUHDZLWKWHUUDFHFRQVWUXFWHGDW 3HULQJNDW/DQG3IRU6HODQFDUHVWDWHDQGDUHDVZLWK WHUUDFHFRQVWUXFWHGDW3HULQJNDW35.30(30) 30*30+DQG30-IRU6HODQFDUHVWDWH 7KH308KDVD623%HVW0DQDJHPHQW3UDFWLFHVIRUHURVLRQ FRQWUROGXULQJUHSODQWLQJRUDQ\DFWLYLWLHVLQYROYLQJHDUWK GLVWXUEDQFH6WHSVWDNHQIRUHURVLRQFRQWURODUHVRLO VWDELOL]DWLRQUXQRIIFRQWURODQGVHGLPHQWWUDSSLQJWRPLWLJDWH WKHGLVWXUEHGHDUWKHQWHULQJZDWHUZD\V 7KHUHZDVQRVRLOHURVLRQQRWHGGXULQJWKHYLVLW/HJXPLQRXV FRYHUFURSPDFXQDEUDFWHDWDZDVZHOOHVWDEOLVKHG $URDGPDLQWHQDQFH SURJUDPPHVKDOOEHLQSODFH 0LQRU&RPSOLDQFH 7KHPDLQURDGVOHDGLQJWRWKHHVWDWHVDUHPDLQWDLQHGE\WKH 3XEOLF:RUNV'HSDUWPHQW*RYHUQPHQW'HSDUWPHQW(VWDWH URDGVZHUHPDLQWDLQHGLQJRRGDQGVDWLVIDFWRU\FRQGLWLRQ 5RDGPDLQWHQDQFHSURJUDPYHULILHGWREHHVWDEOLVKHGDQG LPSOHPHQWHGDVVHHQLQWKHUHFRUGVVXFKDVURDGPDLQWHQDQFH RQ$XJDW3HULQJNDW/IRU6HODQFDUHVWDWHDQG RQ6HSDW3HULQJNDW30*DQG306 IRU6HODQFDU &RPSOLHG 6XEVLGHQFHRISHDWVRLOVVKDOO EHPLQLPLVHGDQGPRQLWRUHG$ GRFXPHQWHGZDWHUDQGJURXQG FRYHUPDQDJHPHQWSURJUDPPH VKDOOEHLQSODFH 0DMRU&RPSOLDQFH 'UDLQDELOLW\DVVHVVPHQWV ZKHUHQHFHVVDU\ZLOOEHFRQGXFWHG SULRUWRUHSODQWLQJRQSHDWWR GHWHUPLQHWKHORQJWHUPYLDELOLW\RI WKHQHFHVVDU\GUDLQDJHIRURLOSDOP JURZLQJ 0LQRU&RPSOLDQFH $PDQDJHPHQWVWUDWHJ\VKDOO EHLQSODFHIRURWKHUIUDJLOHDQG SUREOHPVRLOVHJSRG]ROVDQG DFLGVXOSKDWHVRLOV 0LQRU&RPSOLDQFH ,WZDVFRQILUPHGGXULQJDVVHVVPHQWRQVLWHWKDWWKHUHLVQR SHDWVRLORQWKHHVWDWHV &RPSOLHG 7KHUHZDVQRSHDWVRLORQWKHHVWDWHVDVFRQILUPHGE\ DXGLWRU¶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¶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±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¶V %HVW3UDFWLFH 0DMRU&RPSOLDQFH 3HVWLFLGHVWKDWDUH FDWHJRULVHGDV:RUOG+HDOWK 2UJDQLVDWLRQ&ODVV$RU%RU WKDWDUHOLVWHGE\WKH6WRFNKROPRU 5RWWHUGDP&RQYHQWLRQVDQG SDUDTXDWDUHQRWXVHGH[FHSWLQ VSHFLILFVLWXDWLRQVLGHQWLILHGLQ LQGXVWU\¶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¶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±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¶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¶VZRUNHUVIRU6HODQFDUHVWDWH 7KHUHLVQRFRQWUDFWRU¶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³3HUPLWWRZRUN´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³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¶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µ*XLGHOLQHVIRUWKH ,PSOHPHQWDWLRQRIWKH$6($1 7KH*URXSSROLF\RIµ=HURRSHQEXUQLQJ¶LVHQIRUFHGVLQFH -XO\%RWKWKH320DQGHVWDWHVKDGREVHUYHGWKH SROLF\RIµ=HURRSHQEXUQLQJ¶IRUDQ\UHSODQWLQJLIDQ\DWWKH HVWDWHV &RPSOLHG ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI 3ROLF\RQ=HUR%XUQLQJ¶RU FRPSDUDEOHJXLGHOLQHVLQRWKHU UHJLRQV 0DMRU&RPSOLDQFH :KHUHILUHKDVEHHQXVHGIRU SUHSDULQJODQGIRUUHSODQWLQJWKHUH VKDOOEHHYLGHQFHRISULRUDSSURYDO RIWKHFRQWUROOHGEXUQLQJDV VSHFLILHGLQµ*XLGHOLQHVIRUWKH ,PSOHPHQWDWLRQRIWKH$6($1 3ROLF\RQ=HUR%XUQLQJ¶RU FRPSDUDEOHJXLGHOLQHVLQRWKHU UHJLRQV 0LQRU&RPSOLDQFH )LHOGLQVSHFWLRQVPDGHDW6HODQFDUDQG6HODQFDUHVWDWHV VKRZHGQRHYLGHQFHRIRSHQEXUQLQJ 7KH308KDVDGKHUHGWRWKHµ]HUREXUQLQJµSROLF\IRU UHSODQWLQJDWWKHHVWDWHV 'XULQJWKHDXGLWWKHUHZHUHQRUHSODQWLQJDFWLYLWLHVFDUULHG RXWLQWKHHVWDWHV $OVRWKHUHZDVQRHYLGHQFHRIDQ\EXUQLQJRIGRPHVWLF ZDVWHDWWKHKRXVLQJOLQHVLWHVDQGDWWKHVDQLWDU\ODQGILOOVRI WKHHVWDWHVGXULQJRQVLWHILHOGDVVHVVPHQW6DQLWDU\ODQGILOO ZDVORFDWHGDW6HODQFDUDQG6HODQFDUHVWDWHV7KHDUHD LVORFDWHGIDUDZD\IURPWKHYLOODJHDQGZDWHUVRXUFHV &RPSOLHG &ULWHULD 3ODQVWRUHGXFHSROOXWLRQDQGHPLVVLRQVLQFOXGLQJJUHHQKRXVHJDVHVDUHGHYHORSHGLPSOHPHQWHGDQGPRQLWRUHG ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH $QDVVHVVPHQWRIDOO SROOXWLQJDFWLYLWLHVVKDOOEH FRQGXFWHGLQFOXGLQJJDVHRXV HPLVVLRQVSDUWLFXODWHVRRW HPLVVLRQVDQGHIIOXHQWVHH &ULWHULRQ 0DMRU&RPSOLDQFH 7KH320DQGHVWDWHVKDGUHYLHZHGWKHHQYLURQPHQWDO LPSDFWDVVHVVPHQWRQSRWHQWLDOSROOXWLRQWRZDWHUJDVHRXV HPLVVLRQVWRDLUDQGFRQWDPLQDWLRQRQODQG 0RQLWRULQJRIPLOOJDVHPLVVLRQVLVEHLQJGRQHRQOLQHXVLQJ WKH&RQWLQXRXV(PLVVLRQV0RQLWRULQJ6\VWHP&(06DQG VXSSRUWHGE\WKH5LQJOHPDQQ6PRNH&KDUW5HSRUWVKRZHG HYLGHQWWKDWWKHHPLVVLRQLVZLWKLQWKHSHUPLVVLEOHOLPLWVRI '2(DVYHULILHGE\GRFXPHQWVPDGHDYDLODEOHGXULQJWKHRQ VLWHYLVLWWRWKH320 320(WUHDWPHQWPRQLWRULQJDQGODQGDSSOLFDWLRQLV PRQLWRUHGPDLQWDLQHGDQGDGKHUHGWR'2(UHJXODWLRQV &RPSOLHG 6LJQLILFDQWSROOXWDQWVDQG JUHHQKRXVHJDV*+*HPLVVLRQV VKDOOEHLGHQWLILHGDQGSODQVWR UHGXFHRUPLQLPLVHWKHP LPSOHPHQWHG 0DMRU&RPSOLDQFH ,GHQWLILFDWLRQRIVLJQLILFDQWSROOXWDQWVDQGJUHHQKRXVHJDV *+*HPLVVLRQVKDVEHHQGRQHHJ320(GLHVHOIXHO DQGIHUWLOL]HU7KHLUXVDJHKDYHEHHQUHFRUGHGDQG GRFXPHQWHGDWERWKWKH320DQGHVWDWHV3ODQVWRUHGXFH DQGPLQLPLVHWKHSROOXWDQWVKDYHEHHQLPSOHPHQWHGDQG RQJRLQJ &RPSOLHG $PRQLWRULQJV\VWHPVKDOOEH LQSODFHZLWKUHJXODUUHSRUWLQJRQ SURJUHVVIRUWKHVHVLJQLILFDQW SROOXWDQWVDQGHPLVVLRQVIURP HVWDWHDQGPLOORSHUDWLRQVXVLQJ DSSURSULDWHWRROV 0LQRU&RPSOLDQFH 0RQLWRULQJDQGUHSRUWLQJRIWKHVLJQLILFDQWSROOXWDQWVWRZDWHU &RPSOLHG JDVHRXVHPLVVLRQVWRDLUDQGFRQWDPLQDWLRQRQODQGDUHLQ SODFH 7RROVDQGV\VWHPVXVHGLQFOXGHWKH'2(RQOLQH&(06 PRQLWRULQJIRUDLUHPLVVLRQVZDWHUTXDOLW\DWGLVFKDUJHSRLQWV DVSHU','UHJXODWLRQVDQG6:GLVSRVDOZHUHDGKHULQJWR '2(UHTXLUHPHQWV :DWHUVDPSOHVZHUHUHJXODUO\WDNHQHYHU\VL[PRQWKVDQG WHVWHGE\PLOOHQYLURQPHQWRIILFHULQFKDUJHDQGDQDO\]HGWR HQVXUHFRPSOLDQFHWR'2(UHTXLUHPHQWVDWILQDOGLVFKDUJH SRLQWV7KHZDWHUVDPSOHVZHUHVHQWWR)HOGD$QDO\WLFDO /DERUDWRU\IRUDQDO\VLV 5HFRUGVDUHPDLQWDLQHGDQGYHULILHGRQVLWHWRKDYHPHWWKH SHUPLVVLEOHUHJXODWRU\OLPLWV 0RQWKO\UHSRUWLQJWR'2(ZDVDOVRGRQHDQGUHFRUG GRFXPHQWHG $UHSRUWKDVDOVREHHQVXEPLWWHGWR5632IRUWKHPRQLWRULQJ RIWKHLU*+*HPLVVLRQV ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI 3ULQFLSOH5HVSRQVLEOHFRQVLGHUDWLRQRIHPSOR\HHVDQGRILQGLYLGXDOVDQGFRPPXQLWLHVDIIHFWHGE\ JURZHUVDQGPLOOV &ULWHULRQ $VSHFWVRISODQWDWLRQDQGPLOOPDQDJHPHQWWKDWKDYHVRFLDOLPSDFWVLQFOXGLQJUHSODQWLQJDUHLGHQWLILHGLQD SDUWLFLSDWRU\ZD\DQGSODQVWRPLWLJDWHWKHQHJDWLYHLPSDFWVDQGSURPRWHWKHSRVLWLYHRQHVDUHPDGHLPSOHPHQWHG DQGPRQLWRUHGWRGHPRQVWUDWHFRQWLQXDOLPSURYHPHQW ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH $VRFLDOLPSDFWDVVHVVPHQW 6,$LQFOXGLQJUHFRUGVRI PHHWLQJVVKDOOEHGRFXPHQWHG &RPSOLHG 7KH6RFLDO,PSDFW$VVHVVPHQW6,$GDWHG-XQZDV UHFRUGHGDV³.HVLPSXODQ3HQLODLDQ,PSDN6RVLDO6,$3RVLWLI GDQ1HJDWLI´DQGSUHSDUHGEDVHGRQWKHVXUYH\FRQGXFWHG 0DQDJHPHQW3ODQDQG&RQWLQXRXV,PSURYHPHQW3ODQKDYHEHHQ GRFXPHQWHGDQGLPSOHPHQWHGKHUHDIWHUWREHUHIHUUHG FROOHFWLYHO\DVWKH³VRFLDOGRFXPHQWV´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¶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±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¶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³3ROLVL3HPEHULDQ0DNOXPDW:KLVWOH%ORZLQJ´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¶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³3ROLVL3HQJDPELODQ3HNHUMD$VLQJ´GDWHG -XQHKDV &RPSOLHG EHHQGRFXPHQWHGDQGSXEOLFO\DYDLODEOH,WDGGUHVVHVIRUHLJQ ZRUNHUVZKLFKPRVWO\FRPHIURP,QGRQHVLD(PSOR\PHQW FRQGLWLRQVVWDWHGLQWKH³.RQWUDN3HNHUMDDQ´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´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¶0LQLPXP6WDQGDUGRI+RXVLQJDQG$PHQLWLHV$FW $FW 6LWHYLVLWVWRZRUNHUV¶KRPHVDQGLQWHUYLHZVZLWKWKHZRUNHUVDQG WKHLUGHSHQGHQWVUHYHDOHGWKHLUJHQHUDOVDWLVIDFWLRQZLWKWKHLU ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI RUDFFHVVLEOH 0LQRU&RPSOLDQFH KRXVLQJFRQGLWLRQVDQGDPHQLWLHV +RXVLQJHOHFWULFLW\DQGZDWHUVXSSO\ 7KHZRUNHUVVWD\LQJLQWKHHVWDWHZHUHSURYLGHGZLWKKRXUV HOHFWULFLW\VXSSO\IURP7HQDJD1DVLRQDO%HUKDGDQGWUHDWHG ZDWHUIURP3HQJXUXVDQ$LU3DKDQJ%KG,QDOOWKHHVWDWHV KRXVHKROGZDVWHVZHUHGLVSRVHGDWWKHGXPSVLWHV :RUNHUVDUHJLYHQDVPDOOSDWFKRIODQGWRJURZYHJHWDEOHVIUXLW WUHHVDQGNHHSSRXOWU\DURXQGWKHLUKRXVHVLQRUGHUWRUHGXFHWKH FRVWRIOLYLQJ(DFKZRUNHUZDVJLYHQVXEVLG\IRUHOHFWULFLW\DQG ZDWHUELOOV&OHDQZDWHUVXSSO\FRPHVIURPWUHDWHGSLSHGZDWHU DQGVXSSOLHGWRWKHZRUNHUVTXDUWHUV 6FKRROV 7KHORFDOVWDIIDQGZRUNHUV¶FKLOGUHQEHWZHHQWR\HDUVROG DWWHQG7DGLND.HPDVNLQGHUJDUWHQVZKLFKDUHSURYLGHGIUHHRI FKDUJH2QVLWHYLVLWWRDNLQGHUJDUWHQVKRZHGFKHHUIXOFKLOGUHQ OHDUQLQJLQDVDIHHQYLURQPHQW3ULPDU\VFKRROIRUFKLOGUHQDJHG WR\HDUVROGDQGVHFRQGDU\VFKRROIRUFKLOGUHQDJHGWR \HDUVROGLVDYDLODEOHZLWKLQWKH308)RUHLJQZRUNHUVDUH VLQJOHVWDWXVDQGWKHUHDUHQRFKLOGUHQRIIRUHLJQZRUNHUVLQWKH 308 6XQGU\VKRSV 7KHDYDLODELOLW\RIVXQGU\VKRSVIUHVKPDUNHWZHHNO\QLJKW PDUNHWUHVWDXUDQWVZLWKLQWKH308ZDVKHOSHGWKHVWDIIDQG ZRUNHUVJHWWKHLUVXQGULHVQHDUE\)URPLQWHUYLHZVZLWKWKH ZRUNHUVLQ308LWZDVIRXQGWKDWPRVWKRXVHKROGVXQGULHV LQFOXGLQJIUR]HQIRRGVWXIIVZHUHDYDLODEOHRQVDOH)UHVKIRRG VXFKDVILVKFKLFNHQYHJHWDEOHDQGPHDWDUHEURXJKWLQE\ VXSSOLHUVRQGDLO\EDVLV &UqFKH5XPDK$VXKDQ.DQDNNDQDN 7KHUHLVQRQHHGIRUFUqFKHDWWKHHVWDWHVDVPRVWRIWKH \RXQJHUFKLOGUHQDUHEHLQJFDUHGIRUE\WKHH[WHQGHGIDPLO\ PHPEHUV*RYHUQPHQWPDQDJHGNLQGHUJDUWHQVLH7DGLND .(0$6DUHDYDLODEOHLQDOOHVWDWHVYLVLWHGIRUSUHVFKRRO FKLOGUHQ 0HGLFDOFOLQLFV *RYHUQPHQWPDQDJHGFOLQLFLVDYDLODEOHDWWKH308 *URZHUVDQGPLOOHUVVKDOO PDNHGHPRQVWUDEOHHIIRUWVWR PRQLWRUDQGLPSURYHZRUNHUV¶ DFFHVVWRDGHTXDWHVXIILFLHQWDQG DIIRUGDEOHIRRG )RRGDYDLODEOHIRUWKHVWDII6FKHPH6PDOOKROGHUDQGIRUHLJQ ZRUNHUVSURYLGHGWKURXJKVXQGU\VKRSVIUHVKPDUNHWDQG ZHHNO\QLJKWPDUNHWZLWKLQWKH3080RVWRIWKHVXQGU\VKRSV DUHRSHUDWHGE\WKH6FKHPH6PDOOKROGHUV &RPSOLHG 0LQRU&RPSOLDQFH &ULWHULRQ 7KHHPSOR\HUUHVSHFWVWKHULJKWVRIDOOSHUVRQQHOWRIRUPDQGMRLQWUDGHXQLRQVRIWKHLUFKRLFHDQGWREDUJDLQFROOHFWLYHO\:KHUH WKHULJKWWRIUHHGRPRIDVVRFLDWLRQDQGFROOHFWLYHEDUJDLQLQJDUHUHVWULFWHGXQGHUODZWKHHPSOR\HUIDFLOLWDWHVSDUDOOHOPHDQVRI LQGHSHQGHQWDQGIUHHDVVRFLDWLRQDQGEDUJDLQLQJIRUDOOVXFKSHUVRQQHO ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH $SXEOLVKHGVWDWHPHQWLQ ORFDOODQJXDJHVUHFRJQLVLQJ IUHHGRPRIDVVRFLDWLRQVKDOOEH DYDLODEOH 7KHSXEOLVKHGVWDWHPHQWVRISROLF\3ROLVL+DN.HEHEDVDQ VW %HUVXDUDGDQ0HQJDQJJRWDL3HUVDWXDQGDWHG -XQH ZKLFKUHFRJQL]HVWKHHPSOR\HH¶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³-RLQW&RQVXOWDWLYH &RPPLWWHH´DVDPHFKDQLVPWRFDWHUWRWKHFROOHFWLYHEDUJDLQLQJ DQGQHHGVRIWKHZRUNHUV5HFRUGVRIPHHWLQJVZHUH GRFXPHQWHGNHSWDQGDYDLODEOH8QLRQVPHQWLRQHGDERYHZDV PHHWUHJXODUO\ &RPSOLHG &ULWHULRQ &KLOGUHQDUHQRWHPSOR\HGRUH[SORLWHG ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH 7KHUHVKDOOEHGRFXPHQWDU\ HYLGHQFHWKDWPLQLPXPDJH UHTXLUHPHQWVDUHPHW 0DMRU&RPSOLDQFH 7KH308KDVDSROLF\RIQRWHPSOR\LQJFKLOGODERULHSHUVRQV EHORZ\HDUVROGLQDFFRUGDQFHZLWK(PSOR\PHQW$FWDV HYLGHQFHGLQ³3ROLVL3HNHUMD.DQDNNDQDN´GDWHGVW-XQH 7KLVSROLF\LVGLVSOD\HGDWVWUDWHJLFSXEOLFSODFHV ,QWHUYLHZVZLWKZRUNHUVLQWKHHVWDWHVDQGDWWKH0LOOFRQILUPHG LPSOHPHQWDWLRQRIWKHVWDWHGSROLF\ 7KHELUWKGDWHLQWKH,GHQWLILFDWLRQFDUGIRUORFDOZRUNHUVDQG SDVVSRUWIRUIRUHLJQZRUNHUVZDVXVHGDVWKHYHULILFDWLRQIRU DJH7KHLPSOHPHQWDWLRQZDVYHULILHGWKURXJKFKHFNVRQ ³6HQDUDL0DNOXPDW3HWXJDV´,QWHUYLHZVZLWKZRUNHUVLQWKH HVWDWHVDQGDWWKH0LOOFRQILUPHGLPSOHPHQWDWLRQRIWKHVWDWHG SROLF\ 7KHVWDIIVFKRROJRLQJFKLOGUHQDUHQRWDOORZHGWRDVVLVWLQ SODQWDWLRQZRUNDQGWKLVZDVYHULILHGGXULQJILHOGYLVLWV &RPSOLHG &ULWHULRQ $Q\IRUPRIGLVFULPLQDWLRQEDVHGRQUDFHFDVWHQDWLRQDORULJLQUHOLJLRQGLVDELOLW\JHQGHUVH[XDORULHQWDWLRQXQLRQ PHPEHUVKLSSROLWLFDODIILOLDWLRQRUDJHLVSURKLELWHG ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH $SXEOLFO\DYDLODEOHHTXDO RSSRUWXQLWLHVSROLF\LQFOXGLQJ LGHQWLILFDWLRQRIUHOHYDQWDIIHFWHG JURXSVLQWKHORFDOHQYLURQPHQW VKDOOEHGRFXPHQWHG 0DMRU&RPSOLDQFH 7KH308KDVDSXEOLFO\GLVSOD\HGGRFXPHQWHGSROLF\RQHTXDO VW RSSRUWXQLWLHV³3ROLVL.HVHWDUDDQ3HOXDQJ´GDWHG -XQH 7KHSROLF\VWUHVVHGRQQRQGLVFULPLQDWLRQEDVHGRQUDFHFDVWH QDWLRQDOLW\UHOLJLRQJHQGHUVH[XDORULHQWDWLRQ GLVDELOLW\KDQGLFDSDQGXQLRQSROLWLFDODIILOLDWLRQV+RZHYHU SRVLWLYHGLVFULPLQDWLRQIRUWKHEHQHILWRIFHUWDLQVRFLHW\JURXSV PD\EHDOORZHGDIWHUFRQVXOWDWLRQ &RPSOLHG 7KHUHLVDGRFXPHQWHGSROLF\RQIRUHLJQZRUNHUV³3ROLVL 3HQJDPELODQ3HNHUMD$VLQJ´GDWHG-XQH,WLVSXEOLFO\ GLVSOD\HGDORQJZLWKRWKHUSROLFLHVDWVWUDWHJLFSODFHV 7KHHPSOR\PHQWRIIRUHLJQZRUNHUVZDVLPSOHPHQWHGZLWKRXW DIIHFWLQJWKHRSSRUWXQLWLHVIRUORFDOFRPPXQLWLHV$OOIRUHLJQ ZRUNHUVZHUHKLUHGOHJDOO\ /RFDOZRUNHUVDUHFRYHUHGXQGHU62&62VFKHPHDQGWKH IRUHLJQZRUNHUVDUHFRYHUHGXQGHU)RUHLJQ:RUNHUV &RPSHQVDWLRQVFKHPH):&6 ,QWHUYLHZVZLWKORFDODQGIRUHLJQZRUNHUV¶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³3ROLVL*DQJJXDQ6HNVXDO.HJDQDVDQGDQ+DN.HEHEDVDQ VW 5HSURGXNVL´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¶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³3URVHGXU0HQDQJDQL$GXDQ2OHK*HQGHU&RPPLWWHH5HI1U 0/$/35´ZDVHVWDEOLVKHGDQGPDLQWDLQHG 0DQDJHPHQWFRQILUPHGWKDWWKHUHKDVEHHQQRUHSRUWRIVH[XDO KDUDVVPHQWRUGRPHVWLFYLROHQFHZDVUHSRUWHGLQWKH308VR IDU &RPSOLHG 0LQRU&RPSOLDQFH &ULWHULRQ *URZHUVDQGPLOOHUVGHDOIDLUO\DQGWUDQVSDUHQWO\ZLWKVPDOOKROGHUVDQGRWKHUORFDOEXVLQHVVHV ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH &XUUHQWDQGSDVWSULFHV SDLGIRU)UHVK)UXLW%XQFKHV))% VKDOOEHSXEOLFO\DYDLODEOH 2QVLWHDXGLWYHULILHGWKDWWKHFXUUHQWDQGSDVWSULFHVSDLGIRU))% SULFLQJZHUHGLVSOD\HGDWWKH(VWDWHVDQG0LOORIILFH ))%SULFHSDLGSHUGHOLYHU\LVDOVRVWDWHGLQHDFKWUXFNGHOLYHU\ VOLSLVVXHGE\WKHPLOODVUHIHUHQFH &RPSOLHG 0LQRU&RPSOLDQFH (YLGHQFHVKDOOEHDYDLODEOH WKDWJURZHUVPLOOHUVKDYH H[SODLQHG))%SULFLQJDQGSULFLQJ PHFKDQLVPVIRU))%DQG LQSXWVVHUYLFHVVKDOOEH GRFXPHQWHGZKHUHWKHVHDUH XQGHUWKHFRQWURORIWKHPLOORU SODQWDWLRQ 0DMRU&RPSOLDQFH ))%SULFHVZHUHPDGHDYDLODEOHDW320RIILFH¶VH[WHUQDO1RWLFH &RPSOLHG %RDUG7KH320KDVWUHDWHGRXWJURZHUVDQGRWKHUORFDO EXVLQHVVIDLUO\3ULFLQJPHFKDQLVPIRU))%LVIDLUDQG WUDQVSDUHQWDVSHU032%DSSURYHGOLFHQVHGJUDGHUVDQG EDVHG032%VSHFLILFDWLRQ&XUUHQWDQGSDVWSULFHVSDLGIRU))% ZHUHSXEOLFO\DYDLODEOHDQGYHULILHGWKURXJKLQWHUYLHZV 0HFKDQLVPVDUHDYDLODEOHWRWKHSXEOLFXSRQUHTXHVW (YLGHQFHVKDOOEHDYDLODEOH WKDWDOOSDUWLHVXQGHUVWDQGWKH FRQWUDFWXDODJUHHPHQWVWKH\HQWHU LQWRDQGWKDWFRQWUDFWVDUHIDLU OHJDODQGWUDQVSDUHQW 0LQRU&RPSOLDQFH 6WDNHKROGHULQWHUYLHZVFRQGXFWHGGXULQJWKLVDVVHVVPHQWZLWK VXSSOLHUVFRQWUDFWRUVDQGUHOHYDQWSDUWLHVLQFOXGLQJORFDODQG IRUHLJQZRUNHUVFRQILUPHGWKDWXQGHUVWDQGWKHFRQWUDFWXDO DJUHHPHQWVVXFKDVWHUPVDQGSD\PHQWWKH\HQWHULQWRZLWK WKH3087KH\DOVRFRQVLGHUWKHEXVLQHVVWUDQVDFWLRQVDVIDLU DQGWUDQVSDUHQW &RPSOLHG $JUHHGSD\PHQWVVKDOOEH PDGHLQDWLPHO\PDQQHU $JUHHGSD\PHQWVDUHPDGHSURPSWO\ZLWKLQWKHWKGD\RIWKH IROORZLQJPRQWK7KURXJKLQWHUYLHZVPDGHWKHUHLVQRHYLGHQFH WRVXJJHVWRIDQ\XQIDLUEXVLQHVVSUDFWLFHVZLWKWKHORFDO EXVLQHVVHV &RPSOLHG 0LQRU&RPSOLDQFH &ULWHULRQ *URZHUVDQGPLOOHUVFRQWULEXWHWRORFDOVXVWDLQDEOHGHYHORSPHQWZKHUHDSSURSULDWH ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH &RQWULEXWLRQVWRORFDO GHYHORSPHQWWKDWDUHEDVHGRQWKH UHVXOWVRIFRQVXOWDWLRQZLWKORFDO FRPPXQLWLHVVKDOOEH GHPRQVWUDWHG 0LQRU&RPSOLDQFH )LOHRQVRFLDOFRQWULEXWLRQVDQGDFWLYLWLHVZHUHPDLQWDLQHGDQG QRWHGFRQWULEXWLRQVLVVXHGIRURFFDVLRQVVXFKDVORFDO FRPPXQLW\DFWLYLWLHVUHOLJLRXVVRFLDOHGXFDWLRQDOFRQWULEXWLRQV IRUHVWDWHIDPLO\PHPEHUV&RQWULEXWLRQVZHUHGHPRQVWUDWHGDV IROORZV &RPSOLHG :KHUHWKHUHDUHVFKHPH VPDOOKROGHUVWKHUHVKDOOEH HYLGHQFHWKDWHIIRUWVDQGRU UHVRXUFHVKDYHEHHQDOORFDWHGWR LPSURYHVPDOOKROGHUSURGXFWLYLW\ 0LQRU&RPSOLDQFH x 3URYLGHPDLQWHQDQFHRISXEOLFEXLOGLQJVZKHQHYHU UHTXHVWHG x $OORFDWLRQIRUHGXFDWLRQDOEXGJHWWRVFKRROVLQWKH YLFLQLW\RIWKH308DVLQFHQWLYHVIRUKLJKDFKLHYHUV x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³3ROLVL 3HQJDPELODQ3HNHUMD$VLQJ´DQGHTXDORSSRUWXQLWLHV³3ROLVL .HVHWDUDDQ3HOXDQJ´DUHHVWDEOLVKHGDQGWKHLPSOHPHQWDWLRQV DUHYHULILHGWREHVDWLVIDFWRU\5HYLHZRQHPSOR\PHQWFRQWUDFWV RIIRUHLJQZRUNHUVDOVRFRQILUPHGWKDWWKHSROLFLHVLQFOXGLQJ PLQLPXPZDJHVKDYHDOVREHHQGXO\LPSOHPHQWHG &RPSOLHG 0LQRU&RPSOLDQFH :KHUHWHPSRUDU\RU PLJUDQWZRUNHUVDUHHPSOR\HGD VSHFLDOODERXUSROLF\DQG SURFHGXUHVVKDOOEHHVWDEOLVKHG DQGLPSOHPHQWHG 0DMRU&RPSOLDQFH &ULWHULRQ *URZHUVDQGPLOOHUVUHVSHFWKXPDQULJKWV ,QGLFDWRUV $SROLF\WRUHVSHFWKXPDQ ULJKWVVKDOOEHGRFXPHQWHGDQG FRPPXQLFDWHGWRDOOOHYHOVRIWKH ZRUNIRUFHDQGRSHUDWLRQVVHH &ULWHULDDQG 0DMRU&RPSOLDQFH )LQGLQJVDQG2EMHFWLYH(YLGHQFH VW &RPSOLDQFH 3ROLVL+DN$VDVL0DQXVLDGDWHG -XQHKDVEHHQ GRFXPHQWHGWRUHVSHFWKXPDQULJKWVDQGFRPPXQLFDWHGWRDOO OHYHOVRIWKHZRUNIRUFHDQGRSHUDWLRQV7KHSROLF\IRXQGWREH GLVSOD\HGDWSURPLQHQWORFDWLRQVLQWKH320DQGHVWDWHV &RPSOLHG 6HHDQG 1RW $SSOLFDEOH $VORQJDVFKLOGUHQRI SODQWDWLRQZRUNHUVRI6DEDKDQG 6DUDZDNDUHQRWVHFXUHGDULJKWWR JRWRJRYHUQPHQWVFKRROWKH SODQWDWLRQFRPSDQLHVVKRXOG HQJDJHLQDSURFHVVWRVHFXUHWKH FKLOGUHQRIWKHSODQWDWLRQZRUNHUV DFFHVVWRHGXFDWLRQDVDPRUDO REOLJDWLRQ 0LQRU&RPSOLDQFH 3ULQFLSOH5HVSRQVLEOHGHYHORSPHQWRIQHZSODQWLQJV ..66HODQFDU%308KDVGRFXPHQWHGSURFHGXUHVIRUWKLVGHYHORSPHQWEXWWRGDWHKDVQRWFDUULHGDQ\QHZ SODQWLQJVDIWHU1RY7KHUHIRUHWKHUHTXLUHPHQWVRI3ULQFLSOHDUHQRWDSSOLFDEOHGXULQJWKLVDVVHVVPHQW ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI 3ULQFLSOH&RPPLWPHQWWRFRQWLQXRXVLPSURYHPHQWLQNH\DUHDVRIDFWLYLW\ &ULWHULRQ *URZHUVDQGPLOOHUVUHJXODUO\PRQLWRUDQGUHYLHZWKHLUDFWLYLWLHVDQGGHYHORSDQGLPSOHPHQWDFWLRQSODQVWKDWDOORZ GHPRQVWUDEOHFRQWLQXDOLPSURYHPHQWLQNH\RSHUDWLRQV ,QGLFDWRUV )LQGLQJVDQG2EMHFWLYH(YLGHQFH &RPSOLDQFH 7KHDFWLRQSODQIRUFRQWLQXDO LPSURYHPHQWVKDOOEH LPSOHPHQWHGEDVHGRQD FRQVLGHUDWLRQRIWKHPDLQVRFLDO DQGHQYLURQPHQWDOLPSDFWVDQG RSSRUWXQLWLHVRIWKHJURZHUPLOO DQGVKDOOLQFOXGHDUDQJHRI ,QGLFDWRUVFRYHUHGE\WKHVH 3ULQFLSOHVDQG&ULWHULD 7KH320KDVLGHQWLILHGDQGLPSOHPHQWHGWKHIROORZLQJ&RQWLQXDO ,PSURYHPHQW$FWLRQ3ODQVIRUWKHSHULRGWRDV UHTXLUHG 7RDFKLHYHGLHVHOXVDJHDWOLWHUV07))% 'HVOXGJLQJRIWKHHIIOXHQWSRQGVIURP-XOWR2FW &RQWUROHIIOXHQWZDWHUDWILQDOGLVFKDUJHZLWK%2'SSP 7RDFKLHYH2(5!DQG.(5! 7RDFKLHYH]HURDFFLGHQWDWWKHPLOO 7KHHVWDWHVKDYHLGHQWLILHGDQGLPSOHPHQWHGWKHIROORZLQJ &RQWLQXDO,PSURYHPHQW$FWLRQ3ODQVIRUWKHSHULRGWR DVUHTXLUHG 5HGXFHWKHFRQVXPSWLRQRISHVWLFLGHV ,QFUHDVHWKHQRFRZVDQGEXIIDORJUD]LQJDFUHDJH ,QFUHDVHWKHDFUHDJHIRUEHQHILFLDOSODQWVWXPHUDVXEXODWD DQGFDVVLDFREDQHQVLV )HUWLOL]HUEDJVDUHWREHUHF\FOHGDQGHPSW\SHVWLFLGH FRQWDLQHUVWREHUHWXUQHGWRVXSSOLHU,QDGGLWLRQZDVWHZLOODOVR EHVHJUHJDWHGDFFRUGLQJO\WRWKHSODVWLFDQGRUJDQLFPDWHULDOV 5HXVHIHUWLOL]HUEDJV5HWXUQSHVWLFLGHFRQWDLQHUVWRVXSSOLHUV 6HOORIIREVROHWHSDSHUVVWHHO 5HGXFHWKHGHOLYHU\WLPHRI))%WR320 ,QFUHDVH))%TXDOLW\DQG\LHOG 6RFLDO&RQWLQXDO,PSURYHPHQW$FWLRQ3ODQVIRUWKH320DQG HVWDWHVLQFOXGHWKHIROORZLQJ &RQWLQXRXVFRQWULEXWLRQWRWKHORFDOFRPPXQLWLHVVFKRRO JRYHUQPHQWDJHQFLHVDQGHWF &RQWLQXRXVVXSSRUWRQWKHZRUNHUVVRFLDODFWLYLWLHVVXFKDV VSRUWVDFWLYLWLHVUHOLJLRXVDFWLYLWLHVJRWRQJUR\RQJDQG PDLQWHQDQFHRIIDFLOLWLHV 1HZKRXVLQJXQLWVZHUHEXLOWDQGQHZO\RFFXSLHGE\ PDQDJHPHQWVWDII (YLGHQFHRIUHVXOWVZDVDYDLODEOHIRUWKHDERYHFRQWLQXRXV LPSURYHPHQWDFWLRQSODQV 7KH6HODQFDU(VWDWHKDVLGHQWLILHGDQGLPSOHPHQWHG &RQWLQXDO,PSURYHPHQW$FWLRQ3ODQVIRUWKHSHULRGWR DVUHTXLUHG+RZHYHUWKHUHZDVQRDGHTXDWHHYLGHQFH RIUHVXOWVµEXNWLSHODNVDQDDQ´RQWKHDFWLRQSODQVLWHPV 0DMRU1& 2&/ $VDPLQLPXPWKHVHVKDOOLQFOXGH EXWDUHQRWQHFHVVDULO\EHOLPLWHG WR 5HGXFWLRQLQXVHRISHVWLFLGHV &ULWHULRQ (QYLURQPHQWDOLPSDFWV&ULWHULD DQG :DVWHUHGXFWLRQ&ULWHULRQ 3ROOXWLRQDQGJUHHQKRXVHJDV *+*HPLVVLRQV&ULWHULDDQG 6RFLDOLPSDFWV&ULWHULRQ (QFRXUDJHRSWLPLVLQJWKH\LHOGRI WKHVXSSO\EDVH 0DMRU&RPSOLDQFH 6XSSO\&KDLQ&HUWLILFDWLRQ6WDQGDUGV)LQGLQJVRQ&320LOO 7KH6XSSO\&KDLQPRGHODSSOLHGDW..66HODQFDU%320GXULQJWKLVDVVHVVPHQWLV0RGXOH(±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±6HSZHUHYHULILHGWRKDYHFRPSOLHGZLWKUHTXLUHPHQWV RIWKH0%0RGXOHZKHUHE\WKH3DOP2LO0LOOUHFHLYHGDQGSURFHVVHG ))%IURPLWVRZQHVWDWHVDQG2XWVLGH&URS3URGXFHUV E7KHQDPHRIWKHSHUVRQ KDYLQJRYHUDOOUHVSRQVLELOLW\IRU DQGDXWKRULW\RYHUWKH LPSOHPHQWDWLRQRIWKHVH UHTXLUHPHQWVDQGFRPSOLDQFH ZLWKDOODSSOLFDEOH UHTXLUHPHQWV7KLVSHUVRQ VKDOOEHDEOHWRGHPRQVWUDWH DZDUHQHVVRIWKHVLWH¶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±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µ0%¶PRGXOHDQGLVWKXVHOLJLEOHIRU µ0%¶WUDGLQJIRULWVSDOPSURGXFWVIRU\HDU 0RQLWRULQJRI&632DQG&63.WUDGHG 7UDGLQJRI&632DQG&63.DUHYLD5632H7UDFH*UHHQ3DOPDQG,6&&HSODWIRUPV7KHUHFRUGVPDLQWDLQHGDW WKH320UHOLHGRQLQWHUQDOFRPPXQLFDWLRQVIURPWKHWUDGLQJDUPRI)*930LHWKH/RJLVWLFV'HSDUWPHQWEDVHGDW WKH+4.XDOD/XPSXU%DVHGRQUHFRUGVPDLQWDLQHGDWWKH320WKHWRQQDJHVRI&632WUDGHGDVYHULILHGGXULQJ DVVHVVPHQWDUHDVIROORZV 5632 ,6&& %RRN&ODLP 7RWDO7UDGHG $FWXDO3URGXFHG &632$FWXDO -DQ±'HF 07 1RWDSSOLFDEOH 1RWDSSOLFDEOH 1RWDSSOLFDEOH 1RWDSSOLFDEOH &63.$FWXDO -DQ±'HF 07 1RWDSSOLFDEOH 1RWDSSOLFDEOH 1RWDSSOLFDEOH 1RWDSSOLFDEOH &632$FWXDO -DQ±2FW 07 1RWDSSOLFDEOH &63.$FWXDO -DQ±2FW 07 1RWDSSOLFDEOH 1RWHV x %DVHGRQUHFRUGVPDLQWDLQHGDWWKH320LWZDVYHULILHGWKDWWKHWRWDOWRQQDJHRI&632WUDGHGKDVQRW H[FHHGHGWKHDQQXDOFHUWLILHGTXDQWLW\ x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¶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¶ LQWHUQDO DQG H[WHUQDO FRQVXOWDWLRQ ZDV FRQGXFWHG E\ WKH 320 DQG )*930 6HODQFDU HVWDWH +RZHYHU WKHUH ZDV QR DQDO\VLV RI WKH 6WDNHKROGHUV¶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µEXNWLSHODNVDQDDQ´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¶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¶KRXVLQJDVUHTXLUHGE\UHJXODWRU\UHTXLUHPHQWVDVIROORZ ³:RUNHUV¶0LQLPXP6WDQGDUGVRI+RXVLQJDQG$PHQLWLHV$FW´UHTXLUHVZHHNO\ LQVSHFWLRQRIZRUNHUV¶KRXVLQJ,WVKDOOEHWKHGXW\RIWKHHPSOR\HURIDSODFHRI HPSOR\PHQWZKHUHZRUNHUVDQGWKHLUGHSHQGHQWVDUHSURYLGHGZLWKKRXVLQJ DFFRPPRGDWLRQWRHQVXUHWKDW DWKHDUHDVXUURXQGLQJWKHZRUNHUV¶KRXVLQJLVNHSWFOHDURIXQGHUJURZWKDQG PDLQWDLQHGLQDFOHDQDQGVDQLWDU\FRQGLWLRQ EWKHSHULPHWHUGUDLQVDURXQGHDFKGZHOOLQJRUEORFNRIGZHOOLQJVLQFOXGLQJDOORXWOHW GUDLQVDUHNHSWLQDJRRGVWDWHRIUHSDLUDQGFOHDURIUHIXVHRUXQGHUJURZWKWRSHUPLW IUHHIORZRIZDWHU 5RRW&DXVH /DFNRIHQIRUFHPHQWE\WKHHVWDWHPDQDJHPHQW &RUUHFWLYH$FWLRQ :HHNO\PRQLWRULQJLQVSHFWLRQRIWKHZRUNHUV¶TXDUWHUVFDUULHGRXWDQGUHFRUGV PDLQWDLQHG $FWLRQVWDNHQWRFOHDQXSWKHYDULRXVDUHDVFRQFHUQHGDQGDOVRWKHGUDLQVFOHDUHG RIXQGHUJURZWK 9HULILFDWLRQ&RUUHFWLYH$FWLRQ 2QVLWHYHULILFDWLRQFDUULHGRXW9HULILHGWKDWWKHZHHNO\LQVSHFWLRQUHFRUGVZHUH DYDLODEOH9LVLWVWRWKHZRUNHUV¶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±<HDU 6WDNHKROGHUV¶)HHGEDFN 3085HVSRQVH &%YHULILFDWLRQ )ROORZXS FRPPHQWV FRPPHQWVLIDQ\ *RYHUQPHQW$JHQFLHV &RPXQLFDWLRQGRQHYLDHPDLORQ 7KHUHZDVQRIHHGEDFN 9HULILHGGXULQJRQVLWH 1RIXUWKHUDFWLRQ -XO HQTXLULHVUHFHLYHGIURPDQ\ DVVHVVPHQWWKDWWKHUH QHHGHG 6HHOLVWXQGHUSDUD JRYHUQPHQW$JHQFLHV KDVEHHQQRLVVXHVIURP 1RIHHGEDFNUHFHLYHG FRQFHUQLQJWKHRSHUDWLRQVRI DQ\*RYHUQPHQW WKH308 $JHQFLHVFRQFHUQLQJWKH 308¶VRSHUDWLRQV 1RQ*RYHUQPHQWDO 2UJDQL]DWLRQV 9HULILHGGXULQJRQVLWH 1RIXUWKHUDFWLRQ &RPXQLFDWLRQGRQHYLDHPDLORQ 7KHUHZDVQRIHHGEDFN QHHGHG DVVHVVPHQWWKDWWKHUH -XO HQTXLULHVUHFHLYHGIURPDQ\ 6HHOLVWXQGHUSDUD KDVEHHQQRLVVXHVIURP 1*2FRQFHUQLQJWKH DQ\1*2FRQFHUQLQJWKH RSHUDWLRQVRIWKH308 1RIHHGEDFNUHFHLYHG 308¶VRSHUDWLRQV /RFDO&RPPXQLWLHV 2QVLWHFRQVXOWDWLRQDQGIHHGEDFN VHVVVLRQVZHUHKHOGGXULQJWKH DVVHVVPHQWZLWKYDULRXV FDWHJRULHVRIVWDNHKROGHUV FRPSULVLQJRI&RQWUDFWRUV 6XSSOLHUV7UDQVSRUWHU/RFDO FRPPXQLWLHV9LOODJH+HDG6FKRRO &OLQLFV*RYHUQPHQWDJHQFLHV :LOGOLIH'HSDUWPHQWHWFDQGDOVR HPSOR\HHVZRUNHUVZHUH LQWHUYLHZHGGXULQJWKHRQVLWH DVVHVVPHQW &RQFHUQVDQGLVVXHVUDLVHG ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI LQFOXGH x 7RFDUU\RXWPRUHPRQLWRULQJ 7KH308ZLOOH[DPLQHWKH 7REHIROORZHGXSGXULQJ x (QVXUHFRPSOHWH33(IRU FRQFHUQVDQGLVVXHVUDLVHG WKHQH[W$QQXDO ZRUNHUVDQGWUDLQLQJRQLWV DQGLGHQWLI\DSSURSULDWH 6XUYHLOODQFH$VVHVVPHQW XVDJH DFWLRQV x ()%IDOOLQJRQWRWKHURDGIURP WUDQVSRUWORUU\FDQFDXVHVHULRXV DFFLGHQWVWRRWKHUURDGXVHUV x 6XJJHVWWKDWWKH308 PDQDJHPHQWZLOOJLYHVRFLDO FRQWULEXWLRQPRQH\DQG PDWHULDOVWRWKHVFKRROVZKHQ QHHGHG x &RQWUROVPRNHHPVVLRQDQG ZDVWHVLQWRULYHUV x 0DLQWHQDQFHRIHVWDWHURDGV x (QVXUHJRRGPDLQWHQDFHRI HOHFWULFIHQFHDQGGLWFKHVDORQJ WKHERXQGDU\ZLWKWKHIRUHVW UHVHUYH 3RVLWLYHFRPPHQWVLQFOXGH x 6DWLVILHGZLWKWKH)(/'$ PDQDJHPHQW x (PSOR\HPHQWRSSRUWXQLWLHV 2WKHU,QWHUHVWHGSDUWLHV 1RIXUWKHUDFWLRQ 2QJRLQJFRQVXOWDWLRQ 9HULILHGGXULQJRQVLWH x 6WDNHKROGHUVJHQHUDOO\ PHHWLQJVDQGUHODWLRQVKLS DVVHVVPHQWWKDWWKH308 QHHGHG FRQILUPHGWKDWWKH308KDV EXLOGLQJZLWKLQWHUHVWHG KDVPDQDJHPHQWSODQIRU WDNHQDGHTXDWHSRVLWLYH SDUWLHVZLOOEHPDLQWDLQHG WKHLPSRUYHPHQWRIVRFLDO PHDVXUHVRQHFRQRPLF DQGHQYLURQPHQWDOQHHGV HQYLURQPHQWDODQGVRFLDOLVVXHV RIWKHORFDOFRPPXQLW\ )HHGEDFN5DLVHGE\6WDNHKROGHUV6XUYHLOODQFH$VVHVVPHQW$6$±<HDU 6WDNHKROGHUV¶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¶&RQVXOWDWLRQ $W6HODQFDU%308DWRWDORI VWDNHKROGHUVZHUHSUHVHQWDWWKH 6WDNHKROGHUV&RQVXOWDWLRQ FRPSULVLQJRI *HQGHU&RPPLWWHHPHPEHUV :RUNHUVORFDODQGIRUHLJQ ZRUNHUV± ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI &RQWUDFWRUVVXSSOLHUV± ))%6XSSOLHUV± VPDOOKROGHUV± /RFDOFRPPXQLW\6FKRRO &OLQLFV± *RYHUQPHQWDJHQFLHV$X[LOOLDU\ 3ROLFH)LUHILJKWHUV± +HDGRI9LOODJH±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¶V5HJLVWHU 4XDOLW\$VVXUDQFH/54$0DOD\VLDLQFOXGHWKHPDQDJHPHQWRIDOOW\SHVRIV\VWHPVFHUWLILFDWLRQLQFOXGLQJWKDWRI HQYLURQPHQWDO,62VDIHW\KHDOWK2+6$6DQG&OHDQ'HYHORSPHQW0HFKDQLVPV&'0+HLV FXUUHQWO\ WKH *HQHUDO 0DQDJHU LQ ,QWHUWHN &HUWLILFDWLRQ ,QWHUQDWLRQDO 6GQ %KG +H LV D PHPEHU RI WKH ,QWHUQDO 5HYLHZ3DQHOIRU5632$VVHVVPHQWUHSRUWVVLQFH0D\+HLVSDUWRIWKH5632&%$VVHVVPHQWWHDPZKLFK DXGLWHG5632FHUWLILHG3ODQWDWLRQ0DQDJHPHQW8QLWVVLQFH 0U+HUX7MDWXU:LWMDNVRQR+7:±7UDLQHH/HDG$VVHVVRU7HFKQLFDO([SHUW 3DOP2LO0LOO(QYLURQPHQW6RFLDO+&9DUHD/DQG8VHDQG6XSSO\&KDLQ±$V7UDLQHH/HDG$VVHVVRU 0DVWHULQ0DULQH7HFKQRORJ\DQG%DFKHORULQ)LVK3URFHVVLQJ 0U+HUX:LWMDNVRQRLVDQ,5&$/HDG$XGLWRUIRU,62,622+6$6,62+$&&3%5& )RRG 6DIHW\ ,6&& DQG 5632 6&& +H KDV PRUH WKDQ \HDUV¶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±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±$VVHVVRU7HFKQLFDO([SHUW 2FFXSDWLRQDO+HDOWK6DIHW\DQG6RFLDO ±'LSORPDLQ0HFKDQLFDO(QJLQHHULQJ 0U0RKG1D]LE0DUZDQKDVRYHU\HDUVZRUNH[SHULHQFHLQRFFXSDWLRQDOVDIHW\DQGKHDOWKVHFWRUVLQFH +HKDV\HDUVZRUNLQJH[SHULHQFHDV)DFWRULHVDQG0DFKLQHU\,QVSHFWRUZLWK'HSDUWPHQWRI2FFXSDWLRQDO6DIHW\ +HDOWK 0DOD\VLD '26+ DQG HDUOLHU KH KDV EHHQ FHUWLILHG ZLWK &HUWLILFDWH IRU 6DIHW\ DQG +HDOWK 2IILFHU IURP 1DWLRQDO,QVWLWXWHRI2FFXSDWLRQDO6DIHW\DQG+HDOWK1,26++HKDVVXFFHVVIXOO\FRPSOHWHGWKH,5&$DFFUHGLWHG /HDG$XGLWRU&RXUVHLQ,622+6$6DQGWKH,QWHUWHN,Q+RXVHWUDLQLQJRQ56323& DQG 0<1, $VVHVVRU FRXUVHV +H LV DOVR DQ ,62 /HDG $XGLWRU DQG 2+6$6 DXGLWRU ZLWK ,QWHUWHN 0DOD\VLDDQGKDVSHUIRUPHGRYHUDXGLWLQJGD\VRQTXDOLW\VDIHW\DQGKHDOWKLQYDULRXVVHFWRUVLQFOXGLQJSDOP RLOLQGXVWULHVVLQFH+HLVDPHPEHURIWKH5632&%$VVHVVPHQWWHDPZKLFKDXGLWHGVHYHUDO5632FHUWLILHG 3ODQWDWLRQ0DQDJHPHQW8QLWVVLQFH ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI $SSHQGL[% $VVHVVPHQW3ODQ$FWXDO 'DWH 7LPH 2FW 0RQGD\ 'D\ DP± SP SP ±SP SP± SP SP± SP SP± SP $VVHVVRUVDQG$VVHVVPHQW$FWLYLW\ $VVVHVVPHQW7HDP SP± SP SP± SP 7UDYHOWR+RWHO /XQFK%UHDN 7UDYHOWR..66HODQFDU%3202IILFH 2SHQLQJ0HHWLQJDQG%ULHILQJDW..66HODQFDU%3202IILFH WREHDWWHQGHGE\UHSUHVHQWDWLYHVIURPWKH(VWDWHVDVZHOO 'RFXPHQW5HYLHZDQG$VVHVVPHQWE\DOO$VVHVVRUVRQUHVSHFWLYH 56323&WRDW320 2&/+7: 6$=$/, 010 6LWHDVVHVVPHQWDW3DOP 6LWHDVVHVVPHQWDW3DOP 6LWHDVVHVVPHQWDW3DOP 2LO0LOO 2LO0LOO 2LO0LOO x37UDQVSDUHQF\ x3/DZVUHJXODWLRQV x 3/DZVUHJXODWLRQV x3/DZVUHJXODWLRQV x3(QYLURQPHQWDO x 3(PSOR\HHV &RQVHUYDWLRQ+&9 ,QGLYLGXDOV x3(FRQRPLF)LQDQFLDO &RPPXQLWLHVLQFO 9LDELOLW\ x3&RQWLQXDO,PSURYHPHQW *HQGHU,VVXHV x3%HVW3UDFWLFHVDW0LOO x 3&RQWLQXDO x3&RQWLQXDO,PSURYHPHQW ,PSURYHPHQW x6&&IRU320 x 5HYLHZRIFKDQJHVIRUFRPSOLDQFHWRUHYLVHG56323&0<1,DQG56326&& x 9HULILFDWLRQRIHIIHFWLYHQHVVRIFRUUHFWLYHDFWLRQVIRUQRQFRQIRUPDQFHV x 5HYLHZRI7LPH%RXQG3ODQ x 9HULILFDWLRQIRUFRPSOLDQFHZLWKUXOHVRQSDUWLDOFHUWLILFDWLRQ 7UDYHOWR+RWHO%UHDN 7HDP0HHWLQJDQG'LVFXVVLRQ 'DWH 7LPH 2FW 7XHVGD\ 'D\ DP± SP SP± SP SP SP SP± SP SP± $VVHVVRUVDQG$VVHVVPHQW$FWLYLW\ 2&/+7: 6LWHDVVHVVPHQWDW )*9306HODQFDUHVWDWH x37UDQVSDUHQF\ x3/DZVUHJXODWLRQV x3(FRQRPLF)LQDQFLDO 9LDELOLW\ x3%HVW3UDFWLFHVDW (VWDWHV x31HZ3ODQWLQJV x3&RQWLQXDO ,PSURYHPHQW 6$=$/, 6LWHDVVHVVPHQWDW )*9306HODQFDUHVWDWH x3/DZVUHJXODWLRQV x3(QYLURQPHQWDO &RQVHUYDWLRQ+&9 x3&RQWLQXDO ,PSURYHPHQW 010 6LWHDVVHVVPHQWDW)*930 6HODQFDUHVWDWH x 3/DZVUHJXODWLRQV x 3(PSOR\HHV,QGLYLGXDOV &RPPXQLWLHVLQFO *HQGHU,VVXHV x 3&RQWLQXDO ,PSURYHPHQW /XQFK%UHDN &RQWLQXHVLWHDVVHVVPHQWDW)*9306HODQFDUHVWDWH 7UDYHOWR+RWHO%UHDN 7HDP0HHWLQJDQG'LVFXVVLRQ ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI SP 'DWH 7LPH 2FW DP± :HGQHVGD\ SP 'D\ SP± SP SP SP SP± SP SP± SP $VVHVVRUVDQG$VVHVVPHQW$FWLYLW\ 2&/+7: 6LWHDVVHVVPHQWDW )*9306HODQFDU HVWDWH x37UDQVSDUHQF\ x3/DZVUHJXODWLRQV x3(FRQRPLF)LQDQFLDO 9LDELOLW\ x3%HVW3UDFWLFHVDW (VWDWHV x31HZ3ODQWLQJV x3&RQWLQXDO ,PSURYHPHQW 6$=$/, 6LWHDVVHVVPHQWDW )*9306HODQFDUHVWDWH x3/DZVUHJXODWLRQV x3(QYLURQPHQWDO &RQVHUYDWLRQ+&9 x3&RQWLQXDO ,PSURYHPHQW 010 6LWHDVVHVVPHQWDW )*9306HODQFDUHVWDWH x 3/DZVUHJXODWLRQV x 3(PSOR\HHV ,QGLYLGXDOV &RPPXQLWLHVLQFO *HQGHU,VVXHV x 3&RQWLQXDO ,PSURYHPHQW /XQFK%UHDN &RQWLQXHVLWHDVVHVVPHQWDW)*9306HODQFDUHVWDWH 7UDYHOWR+RWHO%UHDN 7HDP0HHWLQJDQG'LVFXVVLRQ 'DWH 2FW 7KXUVGD\ 'D\ 7LPH DP± DP 2&/+7: 6LWHDVVHVVPHQWDW3DOP 2LO0LOO x37UDQVSDUHQF\ x3/DZVUHJXODWLRQV x3(FRQRPLF)LQDQFLDO 9LDELOLW\ x3%HVW3UDFWLFHVDW0LOO x3&RQWLQXDO ,PSURYHPHQW x6&&IRU320 DP± SP SP± SP SP± SP SP± SP SP± SP $VVHVVRUVDQG$VVHVVPHQW$FWLYLW\ 6$=$/, 010 6WDNHKROGHUV¶&RQVXOWDWLRQRQWKHIROORZLQJ FDWHJRULHVVHH1RWHVDQGEHORZ x &RQWUDFWRUV x 6XSSOLHUV x 7UDQVSRUWHUV x 1*2V x *RYHUQPHQW'HSDUWPHQW$JHQFLHV x /RFDO&RPPXQLW\ x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±,QWHUYLHZLQJSHVWLFLGHVVSUD\HUV 6HODQFDU(VWDWH±3HVWLFLGHVSUD\LQJVLJQERDUG 6HODQFDU(VWDWH±3HVWLFLGHPL[LQJDUHD 6HODQFDU(VWDWH±,QWHUYLHZLQJSHVWLFLGHVVSUD\HUV 6HODQFDU(VWDWH±,QWHUYLHZLQJKDUYHVWHUV 6HODQFDU(VWDWH±)RUHLJQZRUNHUV¶TXDUWHUV ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI $SSHQGL[( 5HYLVHG)(/'$56327LPH%RXQG3ODQ 7DEOH &'sZ^WKZd/&/d/KE͗WZK'Z^^ZWKZdĂƐĂƚϯϬͬϭϬͬϮϬϭϱ EŽ ŽŵƉůĞdž ϭ Ϯ ϯ ϰ ϱ ϲ ϳ ϴ ϵ ϭϬ ϭϭ ϭϮ ϭϯ ϭϰ ϭϱ ϭϲ ϭϳ ϭϴ ϭϵ ϮϬ Ϯϭ ϮϮ Ϯϯ Ϯϰ Ϯϱ Ϯϲ Ϯϳ Ϯϴ Ϯϵ ϯϬ ϯϭ ϯϮ ϯϯ ϯϰ ϯϱ ϯϲ ϯϳ ϯϴ ϯϵ ϰϬ ϰϭ ϰϮ ϰϯ ϰϰ ϰϱ ϰϲ ϰϳ ϰϴ ϰϵ ϱϬ ϱϭ ϱϮ ϱϯ <ŽƚĂ'ĞůĂŶŐŐŝ;^'ͿΎ >ĞƉĂƌhƚĂƌĂϬϲ WĂĚĂŶŐWŝŽů :ĞŶŐŬĂϯ;^'ͿΎ :ĞŶŐŬĂϴ >ĞƉĂƌhƚĂƌĂϬϰ;^'ͿΎ :ĞŶŐŬĂϮϭ;^'ͿΎ :ĞŶŐŬĂϭϴ tĂ,Ă ĚĞůĂ >ŽŬ,ĞŶŐ ^ĞŵĞŶĐŚƵ ƵŬŝƚDĞŶĚŝ <ĞŵĂƐƵů dƌŝĂŶŐ ͘<ĞƉĂLJĂŶŐ dĞŵĞŶƚŝ ƵŬŝƚĞƐĂƌ ƵŬŝƚ^ĂŐƵ &ĂũĂƌ,ĂƌĂƉĂŶ ĂŝĚƵƌŝLJƵ >ĞƉĂƌ,ŝůŝƌ <ƵůĂŝ WĞŶŐŐĞůŝ ĞůŝƚŽŶŐ <ĂŚĂŶŐ EŝƚĂƌ ŵďĂƌĂƵĚŝ >͘<ĞŵƵĚŝ <ĂůĂďĂŬĂŶ hŵĂƐ <ĞŵďĂƌĂ^ĂŬƚŝ DĞƌĐƵWƵƐƉŝƚĂ ,ĂŵƉĂƌĂŶĂĚĂŝ EŝůĂŵWĞƌŵĂƚĂ ^ŐdĞŶŐŝ WĂŶĐŚŝŶŐ dƌŽůĂŬ ĞƐŽƵƚ <ĞƌĂƚŽŶŐϮ ^ĞůĂŶĐĂƌϮ DĞŵƉĂŐĂ :ĞƌĂŶŐĂƵĂƌĂƚ :ĞƌĂŶŐĂƵĂƌƵ ^ĞůĂŶĐĂƌϮ <ĞƌĂƚŽŶŐϯ WĂƐŽŚ <ĞŵĂŚĂŶŐ <ƌĂƵ <ĞƌƚŝŚ ƌŝŶŐ EĞƌĂŵ ^ĞƌƚŝŶŐ ϱϰ ϱϱ ϱϲ ϱϳ ϱϴ ϱϵ ϲϬ ϲϭ ϲϮ ϲϯ ϲϰ ϲϱ ϲϲ ϲϳ ϲϴ ϲϵ ϳϬ ^ĞůĞŶĚĂŶŐ ŚĂůŽŬ dĞƌƐĂŶŐ DĂŽŬŝů <ĞƌĂƚŽŶŐϬϵ dĞŶŐŐĂƌŽŚ dĞŶŐŐĂƌŽŚdŝŵƵƌ <ĞĐŚĂƵ <ĞĐŚĂƵ WĂůŽŶŐdŝŵƵƌ ^ĞƌƚŝŶŐ,ŝůŝƌ ŝŬƵ ŝŶŝϮ ŝŶŝϯ ŝƌdĂǁĂƌ ^ĂŵƉĂĚŝ WŽŶƚŝĂŶWůĂŶƚĂƚŝŽŶ ĞƌƚŝĨŝĐĂƚŝŽŶ ŽĚLJ ĂƚĞKĨ ĂƚĞKĨ ƵĚŝƚ ĞƌƚŝĨŝĐĂƚĞ h h h h h ^/ ^/ ^/ ^/ dhs dhs ^'^ /EdZd< h h ^/Z/D ^/Z/D h ^/ /EdZd< /EdZd< ^/ h h ^/Z/D ^/Z/D ^/Z/D /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< Dhdh'hE' /EdZd< /EdZd< /EdZd< /EdZd< /EdZd< Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Ϯϵ͘Ϭϵ͘ϮϬϬϵ Ϯϵ͘Ϭϵ͘ϮϬϬϵ Ϯϴ͘Ϭϯ͘ϮϬϭϭ Ϯϴ͘Ϭϯ͘ϮϬϭϭ Ϯϴ͘Ϭϯ͘ϮϬϭϭ Ϭϲ͘Ϭϳ͘ϮϬϭϭ Ϭϵ͘Ϭϳ͘ϮϬϭϭ ϭϯ͘Ϭϳ͘ϮϬϭϭ Ϯϭ͘ϬϮ͘ϮϬϭϭ Ϯϭ͘Ϭϯ͘ϮϬϭϭ Ϯϭ͘Ϭϯ͘ϮϬϭϭ Ϭϲ͘Ϭϲ͘ϮϬϭϭ Ϭϱ͘ϭϮ͘ϮϬϭϭ ϭϵ͘ϭϮ͘ϮϬϭϭ Ϯϭ͘ϭϮ͘ϮϬϭϭ Ϯϳ͘ϭϮ͘ϮϬϭϭ ϭϵ͘ϭϮ͘ϮϬϭϭ Ϭϯ͘ϭϮ͘ϮϬϭϮ ϮϬ͘ϭϮ͘ϮϬϭϮ Ϯϭ͘ϭϬ͘ϮϬϭϯ Ϯϭ͘ϭϬ͘ϮϬϭϯ ϭϴ͘ϭϮ͘ϮϬϭϮ Ϭϱ͘ϭϮ͘ϮϬϭϮ Ϭϲ͘ϭϮ͘ϮϬϭϮ ϭϬ͘ϭϮ͘ϮϬϭϮ ϭϮ͘ϭϮ͘ϮϬϭϮ ϭϳ͘ϭϮ͘ϮϬϭϮ ϱͲϵ͘Ϭϱ͘ϮϬϭϰ ϱͲϵ͘Ϭϱ͘ϮϬϭϰ ϬϵͲϭϯ͘Ϭϲ͘ϭϰ ϬϵͲϭϯ͘Ϭϲ͘ϭϰ ϮϭͲϮϱ͘Ϭϴ͘ϭϰ ϭϭͲϭϱ͘Ϭϴ͘ϭϰ ϭϭͲϭϱ͘Ϭϴ͘ϭϰ ϮϭͲϮϱ͘Ϭϴ͘ϭϰ Ϯϵ͘ϬϵͲϬϮ͘ϭϬ͘ϭϰ ϭϳͲϮϬ͘Ϭϵ͘ϭϰ ϬϵͲϭϮ͘Ϭϵ͘ϭϰ ϭϭͲϭϱ͘Ϭϴ͘ϭϰ ϮϮͲϮϲ͘Ϭϵ͘ϭϰ ϮϮͲϮϲ͘Ϭϵ͘ϭϰ Ϯϵ͘ϬϵͲϬϮ͘ϭϬ͘ϭϰ ϬϯͲϬϲ͘ϭϭ͘ϭϰ ϬϯͲϬϲ͘ϭϭ͘ϭϰ ϭϯͲϭϳ͘ϭϬ͘ϭϰ ϮϮͲϮϲ͘Ϭϵ͘ϭϰ Ϯϵ͘ϬϵͲϬϯ͘ϭϬ͘ϭϰ ϬϱͲϬϴ͘Ϭϰ͘ϭϱ ϬϮͲϬϱ͘Ϭϵ͘ϭϰ ϮϲͲϯϬ͘ϭϬ͘ϭϰ ϭϵͲϮϯ͘Ϭϰ͘ϭϱ ϬϳͲϭϭ͘Ϭϵ͘ϭϰ Ϯϵ͘ϬϵͲϬϯ͘ϭϬ͘ϭϰ Dhdh'hE' Dhdh'hE' Dhdh'hE' h h h h h h h h Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' Dhdh'hE' ϮϮͲϮϲ͘Ϭϵ͘ϭϰ ϬϮͲϬϲ͘ϭϭ͘ϮϬϭϰ ϭϭͲϭϱ͘Ϭϱ͘ϭϱ ϮϴͲϯϭ͘ϭϮ͘ϭϰ ϮϴͲϯϭ͘ϭϮ͘ϭϰ ϮϭͲϮϰ͘ϭϮ͘ϭϰ ϮϭͲϮϰ͘ϭϮ͘ϭϰ ϬϱͲϭϬ͘Ϭϭ͘ϭϱ ϬϱͲϭϬ͘Ϭϭ͘ϭϱ ϮϲͲϯϬ͘Ϭϭ͘ϭϱ ϭϵͲϮϯ͘Ϭϭ͘ϭϱ ϭϵͲϮϯ͘Ϭϰ͘ϭϲ ϭϱͲϮϵ͘Ϭϱ͘ϭϱ ϭϱͲϮϵ͘Ϭϱ͘ϭϱ ϭϴͲϮϭ͘Ϭϱ͘ϭϱ ϭϱͲϭϴ͘Ϭϲ͘ϭϱ ϬϴͲϭϮ͘Ϭϲ͘ϭϱ ϮϮ͘Ϭϳ͘ϮϬϭϬ ϮϮ͘Ϭϳ͘ϮϬϭϬ ϭϯ͘ϭϮ͘ϮϬϭϮ ϭϯ͘ϭϮ͘ϮϬϭϮ ϭϯ͘ϭϮ͘ϮϬϭϮ ϭϮ͘Ϭϵ͘ϮϬϭϮ ϭϰ͘Ϭϭ͘ϮϬϭϯ ϭϲ͘Ϭϭ͘ϮϬϭϯ ϯϭ͘Ϭϱ͘ϮϬϭϮ ϭϲ͘Ϭϰ͘ϮϬϭϮ ϭϲ͘Ϭϰ͘ϮϬϭϮ Ϯϱ͘Ϭϳ͘ϮϬϭϮ Ϭϱ͘ϭϬ͘ϮϬϭϮ ϮϬ͘ϭϮ͘ϮϬϭϮ ϭϱ͘ϭϬ͘ϮϬϭϮ Ϭϳ͘Ϭϭ͘ϮϬϭϯ Ϭϵ͘Ϭϵ͘ϮϬϭϯ Ϯϴ͘Ϭϯ͘ϮϬϭϰ ϭϮ͘ϬϮ͘ϮϬϭϰ Ϯϳ͘ϬϮ͘ϮϬϭϰ ϭϰ͘Ϭϰ͘ϮϬϭϰ ϭϰ͘Ϭϰ͘ϮϬϭϰ ϭϰ͘Ϭϰ͘ϮϬϭϰ ϭϰ͘Ϭϰ͘ϮϬϭϰ ϭϯ͘Ϭϲ͘ϮϬϭϰ ϭϯ͘Ϭϲ͘ϮϬϭϰ ϭϯ͘Ϭϲ͘ϮϬϭϰ Ϯϭ͘Ϭϴ͘ϮϬϭϰ ϬϮ͘ϭϬ͘ϮϬϭϰ Ϭϲ͘ϭϬ͘ϮϬϭϰ Ϯϵ͘ϭϬ͘ϮϬϭϰ Ϯϲ͘ϭϭ͘ϮϬϭϰ Ϯϭ͘ϭϭ͘ϮϬϭϰ Ϭϯ͘ϭϮ͘ϮϬϭϰ Ϭϯ͘ϭϮ͘ϮϬϭϰ Ϭϯ͘ϭϮ͘ϮϬϭϰ ϭϲ͘ϭϮ͘ϮϬϭϰ ϮϬ͘ϭϮ͘ϮϬϭϰ ϮϮ͘ϭϮ͘ϮϬϭϰ Ϭϱ͘Ϭϭ͘ϮϬϭϱ Ϭϵ͘Ϭϭ͘ϮϬϭϱ Ϯϯ͘ϬϮ͘ϮϬϭϱ Ϯϯ͘ϬϮ͘ϮϬϭϱ Ϯϰ͘ϬϮ͘ϮϬϭϱ Ϯϰ͘Ϭϰ͘ϮϬϭϱ Ϭϭ͘Ϭϳ͘ϮϬϭϱ Ϭϭ͘Ϭϳ͘ϮϬϭϱ Ϯϴ͘Ϭϳ͘ϮϬϭϱ ϭϵ͘Ϭϴ͘ϮϬϭϱ Ϭϭ͘Ϭϵ͘ϮϬϭϱ Ϯϱ͘Ϭϵ͘ϮϬϭϱ ϭϱ͘ϭϬ͘ϮϬϭϱ ϵ͘ϭϬ͘ϮϬϭϱ dKd>Zd/&/ dKd>^WKsK>hD ^WK;DdͿ ^W<;DdͿ ϰϲ͕ϵϴϬ ϯϲ͕ϵϮϭ ϭϱ͕ϭϵϳ Ϯϰ͕ϭϬϮ ϰϵ͕ϴϬϱ ϯϬ͕ϮϬϬ ϰϴ͕ϬϮϰ ϱϴ͕ϲϰϱ ϯϭ͕ϰϭϲ Ϯϴ͕ϳϰϲ ϭϮ͕ϯϳϭ ϰϰ͕ϯϳϴ Ϯϱ͕ϴϵϴ ϰϯ͕ϳϱϰ Ϯϳ͕ϵϰϵ ϯϰ͕ϭϳϱ ϯϭ͕Ϯϴϲ ϮϮ͕ϮϮϴ Ϯϲ͕ϳϮϬ ϯϮ͕ϵϲϱ ϭϴ͕ϳϱϲ ϰϮ͕ϱϳϮ Ϯϱ͕ϮϯϬ ϯϭ͕ϯϮϮ ϲ͕ϭϲϲ ϭϮ͕ϯϴϳ ϭϰ͕ϰϰϬ ϯϬ͕ϱϱϯ ϰϲ͕ϵϱϳ Ϯϭ͕ϭϳϬ ϮϬ͕ϮϭϬ ϭϳ͕ϲϮϳ ϰϲ͕ϰϮϳ ϯϱ͕ϭϱϴ ϱϰ͕Ϭϵϲ Ϯϱ͕ϳϱϬ ϭϳ͕ϭϲϰ Ϯϯ͕Ϯϵϲ ϯϴ͕ϭϰϮ Ϯϱ͕ϱϰϰ ϭϭ͕ϰϲϬ ϯϲ͕ϵϲϬ ϵ͕ϭϵϳ ϭϮ͕ϳϰϬ ϭϳ͕ϭϲϵ ϰϵ͕ϵϵϲ ϯϰ͕ϱϰϱ Ϯϲ͕Ϭϭϲ Ϯϴ͕Ϯϵϳ Ϯϲ͕ϵϯϮ ϯϲ͕ϰϲϲ ϰϴ͕ϲϴϮ ϯϵ͕ϬϮϱ ϭϬ͕ϱϱϮ ϵ͕ϯϯϯ ϯ͕ϴϭϵ ϲ͕ϭϰϮ ϭϭ͕ϳϭϯ ϳ͕ϬϬϬ ϭϬ͕ϲϭϰ ϭϯ͕ϵϲϯ ϴ͕Ϯϭϭ ϳ͕ϳϮϲ ϯ͕ϭϵϴ ϴ͕ϰϴϬ ϲ͕ϵϲϱ ϭϭ͕Ϭϲϲ ϴ͕ϵϭϮ ϴ͕ϰϴϱ ϴ͕ϰϱϴ ϱ͕ϴϳϲ ϳ͕ϰϮϵ ϳ͕ϳϬϴ ϰ͕ϭϯϴ ϭϮ͕Ϭϲϵ ϳ͕ϭϭϱ ϴ͕ϴϵϬ ϭ͕ϵϯϮ ϯ͕ϰϴϰ ϰ͕ϰϯϬ ϲ͕ϰϰϱ ϭϬ͕ϳϲϰ ϯ͕ϴϵϬ ϰ͕ϵϯϱ ϭϭ͕ϮϮϲ ϭϬ͕ϴϴϭ ϴ͕ϱϳϱ ϭϮ͕ϯϲϳ ϳ͕ϯϳϱ ϰ͕ϰϰϵ ϲ͕ϲϬϴ ϭϭ͕ϰϰϯ ϲ͕ϴϬϰ ϯ͕Ϯϭϱ ϵ͕ϳϰϰ Ϯ͕ϯϵϴ ϯ͕ϰϴϬ ϱ͕ϰϮϮ ϭϯ͕ϯϮϮ ϴ͕ϮϮϱ ϲ͕ϭϳϭ ϳ͕ϰϭϭ ϲ͕ϴϵϬ ϵ͕Ϯϳϭ ϭϭ͕ϱϵϭ ϭϬ͕ϲϲϵ ϭ͕ϲϬϮ͕ϮϭϮ ϰϭϭ͕Ϯϳϵ ϯϱ͕ϴϰϴ Ϯϲ͕ϯϲϴ ϯϴ͕Ϭϯϲ ϰϰ͕ϱϱϬ ϱϭ͕ϲϳϬ ϰϮ͕ϲϲϬ Ϯϲ͕ϳϯϬ ϱϮ͕ϯϬϬ ϱϰ͕ϭϬϬ ϳϰ͕ϵϮϬ ϲϲ͕ϱϮϬ Ϯϱ͕ϴϱϯ ϯϭ͕ϰϳϮ ϯϰ͕Ϯϰϲ Ϯϵ͕ϱϳϲ ϯϬ͕Ϭϴϲ ϯϬ͕ϬϬϬ ϴ͕ϭϭϮ ϲ͕Ϭϵϵ ϭϬ͕ϭϴϯ ϭϮ͕ϴϳϬ ϭϰ͕ϰϴϬ ϭϮ͕ϰϴϬ ϳ͕ϲϰϬ ϭϯ͕ϯϰϬ ϭϯ͕ϴϳϬ ϭϵ͕ϮϱϬ ϭϵ͕ϮϳϬ ϲ͕ϴϭϯ ϳ͕ϱϮϱ ϵ͕ϯϳϵ ϵ͕ϭϬϯ ϳ͕ϳϱϴ ϵ͕ϬϬϬ Ϯ͕Ϯϵϳ͕ϭϰϳ ϱϵϴ͕ϰϱϭ ZĞŵĂƌŬƐ Z^WKĞƌƚŝĨŝĞĚ ZĞƉŽƌƚ ƵĚŝƚĞĚ;ĐůŽƐŝŶŐEͿ /ŶƚĞƌŶĂů &ƵƚƵƌĞ ĞƌƚŝĨŝĞĚŽŶϮϴ͘Ϭϯ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϮ͘ϬϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϳ͘ϬϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϰ͘Ϭϰ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϰ͘Ϭϰ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϰ͘Ϭϰ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϰ͘Ϭϰ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϯ͘Ϭϲ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϯ͘Ϭϲ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϯ͘Ϭϲ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϭ͘Ϭϴ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϬϮ͘ϭϬ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϬϲ͘ϭϬ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϵ͘ϭϬ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϲ͘ϭϭ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϭ͘ϭϭ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϬϯ͘ϭϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϬϯ͘ϭϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϬϯ͘ϭϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϭϲ͘ϭϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϬ͘ϭϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϮϮ͘ϭϮ͘ϮϬϭϰ ĞƌƚŝĨŝĞĚŽŶϬϱ͘Ϭϭ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϬϵ͘Ϭϭ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϮϯ͘ϬϮ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϮϯ͘ϬϮ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϮϰ͘ϬϮ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϮϰ͘Ϭϰ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϬϭ͘Ϭϳ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϬϭ͘Ϭϳ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϮϴ͘Ϭϳ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϭϵ͘Ϭϴ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϬϭ͘Ϭϵ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϮϱ͘Ϭϵ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϭϱ͘ϭϬ͘ϮϬϭϱ ĞƌƚŝĨŝĞĚŽŶϬϵ͘ϭϬ͘ϮϬϭϱ WĞĞƌZĞǀŝĞǁ ƵĚŝƚĞĚĂŶĚĐůŽƐŝŶŐE ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI 7DEOH 1R 0LOOFRPSOH[HVWREHDXGLWHGLQWKHUHVSHFWLYH\HDU .*HODQJJL -HQJND $GHOD 7ULDQJ $ULQJ$ 6DPSDGL 6HUWLQJ+LOLU &LQL 3RQWLDQ %HOLWRQJ )+DUDSDQ (PEDUD%XGL 3DORQJ7LPRU %XNLW %HVDU /8WDUD -HQJND /RN+HQJ -HQJND 6HPHQFX %DLGXUL$\X /.HPXGL .DKDQJ .DODEDNDQ 0DRNLO &LNX $LU7DZDU 8PDV 7HQJJDURK .HPDKDQJ 1HUDP 77LPRU 7HUVDQJ 3DQFLQJ .HFKDX$ &LQL .HPDVXO /HSDU+LOLU %HVRXW .HFKDX% 7HPHQWL %XNLW6DJX 7URODN .HUDWRQJ .HUDWRQJ .HUDWRQJ 6J7HQJL /8WDUD :DKD .XODL -HQJND %.HSD\DQJ 1LWDU 3DGDQJ %XNLW0HQGL 3HQJJHOL 3LRO .UDX 0HPSDJD 6HUWLQJ 3DVRK 6HODQFDU$ 6HODQFDU% &KDORN -%DUDW -%DUX .HUWLK 6HOHQGDQJ .HPEDUD 6DNWL 03XVSLWD 13HUPDWD +%DGDL 7RWDO $XGLWHG &HUWLILHG 7RWDO308V ,17(57(.&(57,),&$7,21,17(51$7,21$/6'1%+' : 5HSRUW1R5)HOGD*OREDO9HQWXUHV3ODQWDWLRQV0DOD\VLD6GQ%KG ..66HODQFDU%*URXSLQJ$6$ 3DJHRI +DYHWKH308VIRULHIRUIRUEHHQDFWXDOO\DXGLWHGLQ" <HVDOO308VWKDWZDVSODQQHGWREHFHUWLILHGEHWZHHQDQGDOUHDG\DXGLWHGIRU5632FRPSOLDQFHLQ )*9WRSPDQDJHPHQWKDVGHFLGHGWRH[SHGLWHWKH5632FHUWLILFDWLRQDVSDUWRIRXUFRPPLWPHQWWREHIXOO\ 5632FHUWLILHGE\ )*9QHZODQGFRQFHVVLRQIRU2LO3DOP3ODQWDWLRQLQ0DOD\VLD ,Q \HDU )*9 FORVHG GRZQ WZR PLOOV .LODQJ 6DZLW -HUDJDQ %LVWDUL LQ 6DEDK DQG .LODQJ $ULQJ % LQ $ULQJ .HODQWDQWRRSWLPL]HRXURSHUDWLRQ$OOWKHFURSIRUPWKHPLOOV VVXSSO\EDVHGZDVVKLIWHGWRWKHQHDUE\)*9PLOOV 2Q$XJXVW)*9VLJQHGDGHDOWRDFTXLUHG$VLDQ3ODQWDWLRQV/LPLWHG$3/DFRPSDQ\EDVHGLQ6LQJDSRUH 7KHDFTXLVLWLRQRI$3/ZKLFKFRQVLVWVRIHVWDWHVPHDVXULQJKDDQGWRQKUPLOOZDVFRPSOHWHGRQ WK 1RYHPEHU $3/ ZLOO EH LQFOXGHG LQ )HOGD)*9 5632 WLPH ERXQG SODQ EHJLQQLQJ -DQXDU\ GXH WR VRPHOHJDOPDWWHUVWREHVROYHG1RQHZODQGFRQFHVVLRQRXWVLGH0DOD\VLDIRU 1HZ3ODQWLQJ3URFHGXUHIRUQHZO\DFTXLUHGSODQWDWLRQV )*9KDGFRQGXFWHG+&9DQG6,$DVVHVVPHQWIRUWKH$3/FRQFHVVLRQDQGLQWKHSURFHVVRIVXEPLWWLQJWKH133WR 56327DEOH 3URSRVHG1HZ $FTXLVLWLRQ $VLDQ3ODQWDWLRQ /LPLWHG 'DWHRI 3URSRVDO +HFWDUDJH +D 1RY 1HZ3ODQWLQJ3URFHGXUH 133 6(,$+&9 +&9DQG6,$ FRQGXFWHG 133LQSURFHVV 8SGDWHG6WDWXV± 1RY +&9RQ+&951SHHU UHYLHZSURFHVV $W,1'21(6,$7DEOH 3URSRVHG1HZ $FTXLVLWLRQ 37&13 .DOLPDQWDQ 377$$ .DOLPDQWDQ 'DWHRI 3URSRVDO -XQ 'HF +HFWDUDJH 6(,$+&9 6(,$ &RPSOHWHG +&9 &RPSOHWHG 6(,$&RPSOHWHG +&9FRQGXFWHG 1HZ3ODQWLQJ 3URFHGXUH133 8SGDWHG6WDWXV±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²
Similar documents
SEPT. 22-23-24
JUHDW GHDO RI WLPH UHVHDUFK IRFXV RQ QDPHV ELUWK PDU LQJWKHLQGLYLGXDOVZKRPD\ ULDJH DQG GHDWK GDWHV DQG KDYH RZQHG WKHP $W VRPH VLEOLQJV2QFHWKH\KDYHWKLV SRLQWLQ...
More information