Cities Index.
26-609 Lease Agreement

Fresno City Council
May 21, 2026

Document
26-609 Lease Agreement
Meeting
May 21, 2026
Body
Fresno City Council
Original file
213 KB
Text extracted from the city's file for reading and search. Open the original on legistar2.granicus.com. That file is the official record.

3DJHRI
/($6($*5((0(17
 7KLV/($6($*5((0(17
³$JUHHPHQW´RU³/HDVH
LVPDGHDQGHQWH UHGLQWRRQ
BBBBBBBBBBBBBBBBBBB 
WKH ³(IIHFWLYH 'DWH´
 E\ DQG EHWZHHQ  WKH &,7< 2)
)5(612D&DOLIRUQLDPXQLFLSDOFRUSRUDWLRQ
³/DQGORUG´RUWKH&LW\
DQG'2:172:1
'(9(/230(17*5283//&'%$)5,'$&$)(D&DOLIRUQLDOLPLWHGOLDE LOLW\FRPSDQ\

/HVVHH´

5(&,7$/6
:+(5($6WKH&LW\RZQVSURSHUW\ORFDWHGDWWKHLQWHUVHFWLRQRI)UHVQR6WUHHWDQG 26WUHHW)UHVQR&DOLIRUQLD
WKH³3UHPLVHV´
FRPPRQO\UHIHUUHGWRDVWKH)UHVQR:DWHU
7RZHU
³:DWHU7RZHU´

DQG
:+(5($6WKH:DWHU7RZHULVRQERWKWKH1DWLRQDO5HJLVWHURI+LV WRULF3ODFHV DQGRQWKH/RFDO+LVWRULF5HJLVWHUIRUWKH&LW\RI)UHVQR DQG
:+(5($6 /HVVHH GHVLUHV WR RSHUDWH D FRIIHH VKRS DQG FDIH WR VHO O FRIIHH SURGXFWVVPDOOIRRGLWHPVDUWKLVWRULFDODQG&LW\RI)UHVQRUHODWHGVRXYHQLUVDWWKH:DWHU 7RZHU
DQG
:+(5($6WKH&LW\DQG/HVVHHGHVLUHWRH[HFXWHDOHDVHDJUHHPHQWWRGHILQHWKH WHUPVDQGFRQGLWLRQVXQGHUZKLFKWKH/HVVHHZLOOEHDOORZHGWRRSHUDWHDVGHILQHGKHUHLQ DWWKH:DWHU7RZHU
$*5((0(17
12: 7+(5()25( WKH SDUWLHV KHUHWR LQ FRQVLGHUDWLRQ RI WKH IRUHJRLQJ DQG RI WKH FRYHQDQWVFRQGLWLRQVDQGSURPLVHVKHUHLQDIWHUFRQWDLQHGWRE HNHSWDQGSHUIRUPHGE\ WKHUHVSHFWLYHSDUWLHVDJUHHDVIROORZV

6(&7,21'(6&5,37,212)7+(35(0,6(6
$ 7KHSK\VLFDODGGUHVVRIWKH:DWHU7RZHULV)UHVQR6W) UHVQR&$ 
)RUWKHSXUSRVHVRIWKLV/HDVH$JUHHPHQWWKH/HDVHG3UHPLVHVV KDOOEHGHILQHG DV

D 7KHLQWHULRUFRPPHUFLDODUHDRIWKH:DWHU7RZHU
E $OO SDYHG DQG XQSDYHG H[WHULRU FRXUW\DUG DUHDV VXUURXQGLQJ W KH :DWHU 7RZHUWKDWDUHORFDWHGZLWKLQWKHIHQFHRQWKHSURSHUW\DQG F 7KHUHVWURRPIDFLOLW\ORFDWHGDGMDFHQWWRWKH:DWHU7RZHU % 7KUHH

SDUNLQJSDVVHVLQD&LW\RZQHGSDUNLQJORWZLWKLQIHHWRIWKHSUHPLVHV IRUXVHE\/HVVHH¶VHPSOR\HHV
& 7KH&LW\VKDOODOVRGHVLJQDWHWKUHHPHWHUHGSDUNLQJVSRWVDVVKRUWWHUPSDUNLQJ ' 7KH/HVVHHVKDOOKDYHQRQH[FOXVLYHXVHRIWKHUHVWURRPIDFL OLW\DQGVKDOONHHS WKHP RSHQ WR WKH SXEOLF GXULQJ RSHUDWLQJ KRXUV RU DV GHILQHG E\  DQ LVVXHG &RQGLWLRQDO8VH3HUPLW
( 7KH /HVVHH VKDOO KDYH QRQH[FOXVLYH XVH RI WKH FRXUW\DUG DUHD DQG ZLOO UHPDLQ RSHQWRWKHSXEOLFGXULQJEXVLQHVVKRXUV7KHFRXUW\DUGLVVXE MHFWWRXVHE\WKH &LW\WKURXJK6HFWLRQRIWKLV/HDVH
) 7KH/HVVHHVKDOOEHSURKLELWHGIURPXVLQJDQ\RWKHUSURSHUW\ RUODQGDUHDLQWKH YLFLQLW\ RI WKH :DWHU 7RZHU H[FHSW IRU WKRVH OLVWHG DERYH 7KH &LW\ OHDVHV WKH $"


%











3DJHRI
/HDVHG3UHPLVHVWR/HVVHH³DVLV´LQLWVH[LVWLQJSK\VLFDOFRQ GLWLRQDQGZLWKRXW ZDUUDQW\RQWKHWHUPVDQGFRQGLWLRQVVHWIRUWKKHUHLQ * 7KH /HVVHH KDV H[DPLQHG WKH 3UHPLVHV SULRU WR H[HFXWLRQ RI W KLV /HDVH $JUHHPHQW DQG UHSUHVHQWV WKH 3UHPLVHV DUH VXLWDEOH IRU WKH VWDW HG SXUSRVHV FRQWDLQHGLQWKLV/HDVH$JUHHPHQW
+ 7KH/HDVHG3UHPLVHVDQGDOOFRQWHQWVDQGDUWLIDFWVZLWKLQWKH3UHPLVHVERXQGDU\ VKDOODOZD\VUHPDLQWKHSURSHUW\RIWKH&LW\LQFOXGLQJDOODOW HUDWLRQVUHSDLUVDQG LPSURYHPHQWVFRPPLVVLRQHGE\WKH/HVVHH
, /HVVHHLVH[SUHVVO\SURKLELWHGIURPFKDQJLQJWKHORFNVWRDQ \GRRUVWRDQ\SDUWRI WKH/HDVHG3UHPLVHV7KH&LW\VKDOOPDLQWDLQRQHVHWRINH\VIRUWKH3UHPLVHVDQG WKH/HVVHHVKDOOPDLQWDLQRQHVHWRINH\VIRUWKH/HDVHG3UHPLVHV,I/HVVHH¶VVHW RINH\VDUHORVWRUVWROHQWKH&LW\ZLOOFKDQJHDOOORFNVDQG/HVVHHVKDOOUHLPEXUVH WKH&LW\IRUWKHIXOOFRVWWRFKDQJHDOOORFNV,QDGGLWLRQWKH&LW\VKDOOFKDUJH/HVVHH D/RFN&KDQJH)HHRI
6(&7,217(50$1'())(&7,9('$7(
$ 7KH WHUP RI WKLV /HDVH $JUHHPHQW
7HUP
 LV IRU D SHULRG RI WKUHH

 \HDUV
FRPPHQFLQJ
DPRQBBBBBBBBBDQGWHUPLQDWLQJ



 SPRQ
BBBBBBBBBB
XQOHVVVRRQHUWHUPLQDWHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI WKLV /HDVH 7KH /HDVH PD\ EH H[WHQGHG IRU WZR

 RQH\HDU H[WHQVLRQV XSRQ
PXWXDOZULWWHQDJUHHPHQWRIWKHSDUWLHV$ZULWWHQUHTXHVWIRU H[WHQVLRQPXVWEH VXEPLWWHGE\WKHUHTXHVWLQJSDUW\GD\VSULRUWRWHUPGDWHDE RYH,IWKHOHDVHLV H[WHQGHGIRUWZR

RQH\HDUH[WHQVLRQVWKHOHDVHVKDOOWHUPLQDWHIRXU

\HDUV
DQGGD\VIROORZLQJWKHFRPPHQFHPHQWGDWH
6(&7,216(&85,7<'(326,7
$ 3ULRUWRWKH&LW\JUDQWLQJWKH/HVVHHDFFHVVWRWKH3UHPLVHWRLPSURYHWKHSURSHUW\ RU LQLWLDWH RSHUDWLRQV WKH /HVVHH VKDOO GHSRVLW WKH VXP VHYHQKXQGUHG DQG ILIW\ GROODUVDVD6HFXULW\'HSRVLWZLWKWKH&LW\7KLV6HFXULW\'HSRVLWZLOOVHUYH DV D VXUHW\ LQVWUXPHQW WR HQVXUH WKH /HVVHH FRPSOLHV ZLWK DOO WKH WHUPV RI WKLV /HDVH$JUHHPHQW7KLV6HFXULW\'HSRVLWPD\QRWEHXVHGWRSD\W KHODVWPRQWK¶V UHQW ZLWKRXW WKH &LW\ 0DQDJHU¶V SULRU ZULWWHQ FRQVHQW ,I WKH /HVVHH EUHDNV RU RWKHUZLVH YLRODWHV WKLV /HDVH SULRU WR WKH H[SLUDWLRQ RI WKLV /HDVH WKHQ WKH &LW\ PD\DWWKH&LW\¶VGLVFUHWLRQUHWDLQDOORUSDUWRIWKH6HFXUL W\ 'HSRVLW WR UHFRYHU XQSDLGUHQWRUSD\IRUUHSDLUGDPDJHWRWKHSURSHUW\,IWKH/H VVHHKDVFRPSOLHG ZLWK DOO WHUPV RI WKLV /HDVH DQG UHWXUQV WKH 3UHPLVHV WR WKH &LW\ LQ WKH VDPH FRQGLWLRQDVZKHQ/HDVH$JUHHPHQWZDVH[HFXWHGE\ERWKSDUWLHV WKHQ&LW\ZLOO UHWXUQWKH6HFXULW\'HSRVLWZLWKLQGD\V
6(&7,21/($6(3$<0(17
$ 7KH&LW\VKDOOFKDUJHSHUPRQWKRUIUDFWLRQWKHUHRIIRUWK HXVHRIWKHLQWHULRU VTXDUHIHHWRIWKH:DWHU7RZHUDVVRFLDWHGZLWKWKH/HDVHG3UHPL VHVDVGHILQHG E\WKH5HQW6FKHGXOH7KHOHDVHSD\PHQWLVLQFOXVLYHRIQDWXUDO JDVZDWHUDQG VHZHU7KHILUVWOHDVHSD\PHQWVKDOOEHFRPHHIIHFWLYHDQGGXHXSRQ/HVVHHEHLQJ LVVXHGDQRFFXSDQF\SHUPLWIRUWKH3UHPLVHV


$"


%











3DJHRI
% 5HQW6FKHGXOHVKDOOEHGHILQHGDVIROORZV

3HULRG 6)5DWH 0RQWKO\5HQW $QQXDO5HQW
<HDU   

<HDU  
 


<HDU  
 

2SWLRQDO<HDU 
 
 


2SWLRQDO<HDU   
 
' 5HQWLVODWHLIQRWSDLGE\WKHWKGD\RIHDFKPRQWK 
( $
ODWHIHHZLOODSSO\IRUDQ\SD\PHQWVRQRUDIWHUWKH WKRIHDFKPRQWK

) /HVVHH¶VIDLOXUHWRSD\5HQWRUDQ\RWKHUDPRXQWVZLWKLQILY H 
GD\VRILWVGXH
GDWH XQGHU WKLV $JUHHPHQW VKDOO FRQVWLWXWH D GHIDXOW XQGHU 6HFWLRQ  RI WKLV $JUHHPHQW

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¶VGHIDXOWIRUWKHRYHUGXHDPRXQW QRUSUHYHQWWKH&LW\IURPH[HUFLVLQJWKHRWKHUULJKWVDQGUHPHG LHVJUDQWHGXQGHU WKLV$JUHHPHQW

+ $OO VXPV RI PRQH\ GXH WR WKH &LW\ XQGHU WKLV $JUHHPHQW QRW V SHFLILFDOO\ FKDUDFWHUL]HGDV5HQWRUDVD/DWH)HHVKDOOFRQVWLWXWH$GGLWL RQDO5HQW1RWKLQJ FRQWDLQHGLQWKLV$JUHHPHQWVKDOOEHGHHPHGWRVXVSHQGRUGHOD\ WKHSD\PHQWRI DQ\VXPRIPRQH\DWWKHWLPHLWEHFRPHVGXHDQGSD\DEOHXQGHUWKLV$JUHHPHQW 
, 7KH&LW\
VDFFHSWDQFHRIOHVVWKDQWKHIXOODPRXQWRIDQ\SD\PHQWGXHIURP/HVVHH VKDOOQRWEHGHHPHGDQDFFRUGDQGVDWLVIDFWLRQRUFRPSURPLVHRI VXFKSD\PHQW XQOHVVWKH&LW\VSHFLILFDOO\FRQVHQWVLQZULWLQJWRSD\PHQWRI VXFKOHVVHUVXPDV DQDFFRUGDQGVDWLVIDFWRU\SURPLVHRIWKHDPRXQWZKLFKWKH&LW\FODLPV 
, Q L W L D O V  R I  / H V V H H 

6(&7,2123(5$7,21$/&2676
$ /HVVHH VKDOO SD\ DOO RSHUDWLRQDO FRVWV UHTXLUHG WR RSHUDWH D FRIIHH VKRS RQ WKH 3UHPLVHV LQFOXGLQJ GDLO\ FOHDQLQJ RI WKH FRXUW\DUG DUHD DQG G DLO\ FOHDQLQJ VDQLWL]LQJ DQG VXSSO\LQJ RI WKH UHVWURRP IDFLOLWLHV 2SHUDWLRQDO &RVWV VKDOO EH GHILQHGDVDOOEXVLQHVVUHODWHGFRVWVQRWH[SOLFLWO\DVVLJQHGWRWKH&LW\KHUHLQ $"


%












3DJHRI
6(&7,2187,/,7,(6
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
$ 7KH/HVVHHVKDOOXVHWKH/HDVHG3UHPLVHVIRUWKHRSHUDWLRQR IDFRIIHHVKRSDQG FDIpLQFOXGLQJWKHVDOHRIFRIIHHSURGXFWVSDVWULHVVPDOOIR RGLWHPVDQGRWKHU IRRGDQGEHYHUDJHLWHPVFXVWRPDULO\RIIHUHGLQDFDIpVHWWLQJ D 7KHVDOHRIDOFRKROLFEHYHUDJHVLVQRWSHUPLWWHGXQOHVVDSS URYHGE\WKH &LW\0DQDJHUDQGWKLV$JUHHPHQWLVDPHQGHGE\PXWXDOZULWWHQDJUHHPHQW XQGHU6HFWLRQ,QVXUDQFHPXVWEHDSSURYHGE\WKH&LW\SULRUWRWKHVDOH RIDQ\DOFRKRO
E ,I /HVVHH GHVLUHV WR FKDQJH RU DGG XVHV IRU WKH /HDVHG 3UHPLVHV WKHQ /HVVHH VKDOO VXEPLW D ZULWWHQ UHTXHVW IRU DGGLWLRQDO XVHV WR WK H &LW\ 0DQDJHUIRUDSSURYDOSURYLGHGWKDWVXFKXVHVDUHODZIXOFRQVL VWHQWZLWK WKH )UHVQR 0XQLFLSDO &RGH DQG DUH LQ IXOO FRPSOLDQFH ZLWK WKH :DWHU 7RZHU¶V UHJLVWHUHG KLVWRULF GHVLJQDWLRQV 7KH /HVVHH VKDOO QRWFKDQJH RU DGGXVHVZLWKRXWUHFHLYLQJSULRUZULWWHQDSSURYDOIURPWKH&LW\0DQDJHU % 7KH/HVVHHVKDOOEHUHTXLUHGWRRSHUDWHWKHFRIIHHVKRSZLWKLQWKHLQWHULRUVWUXFWXUH RIWKH:DWHU7RZHU7KH/HVVHHVKDOOEHSURKLELWHGIURPRSHUDWLQJWKHFRIIHHVKRS RXWGRRUV
& 7KH/HVVHH¶VLVDXWKRUL]HGWRRSHUDWHWKHFRIIHHVKRSEHWZHHQWKHIROORZLQJKRXUV 
D 6XQGD\±7KXUVGD\

$0±
30
E )ULGD\6DWXUGD\

$0±
$0
F $FWXDORSHUDWLRQDOKRXUV
LHRSHQWRSXEOLF
ZLWKLQWKHUH VWULFWLRQVQRWHGLQ

D
WKURXJK
E
DUHDWWKHGLVFUHWLRQRIWKH/HVVHH
G 7KLV DXWKRUL]DWLRQ GRHV QRW VXSHUVHGH DQ\ FRQGLWLRQV DSSURYH G IRU WKH RSHUDWLRQRIWKLVEXVLQHVV/HVVHHVKDOOEHERXQGE\WKHPRUH UHVWULFWLYH UHTXLUHPHQW
H 7KH/HVVHHVKDOOEHDXWKRUL]HGWRUHGXFHWKHQXPEHURIGD\V DQGQXPEHU RIKRXUVRIRSHUDWLRQZLWKRXWSULRUZULWWHQDSSURYDOIURPWKH& LW\0DQDJHU +RZHYHU /HVVHH PD\ QRW LQFUHDVH WKH GDLO\ KRXUV RI RSHUDWLRQ ZLWKRXW UHFHLYLQJSULRUZULWWHQDSSURYDOIURPWKH&LW\0DQDJHU ' 'XULQJUHJXODUEXVLQHVVKRXUVWKHRXWGRRUWXUIVKDOOEHDYD LODEOHWRWKHJHQHUDO SXEOLF DV FRPPXQLW\ VSDFH IRU FLYLF FHUHPRQLDO RU RWKHU FRPPXQLW\ HYHQWV RU VRFLDOJDWKHULQJVDVUHTXLUHGE\6WDWHRI&DOLIRUQLD$VVHPEO\%LOO $"


%











3DJHRI
( /HVVHHVKDOOEHSHUPLWWHGWRXVHWKHH[WHULRU/HDVHG3UHPLVH VIRUWKHIROORZLQJ DQFLOODU\XVHVWRVXSSRUWFDIpRSHUDWLRQV

D (QWHUWDLQPHQWFXOWXUDORUKLVWRULFSURJUDPPLQJDQGPXVLF L $OO RXWGRRU DXGLR PXVW EH LQ VWULFW FRPSOLDQFH ZLWK &LW\ QRL VH RUGLQDQFHV
LL 0XVLFFRQWDLQLQJYXOJDURUSURIDQLW\LVQRWSHUPLWWHG E (YHQWVSHUPLWWHGWKURXJK6SHFLDO(YHQWV3HUPLWSURFHVV L /HVVHH VKDOO REWDLQ DOO DSSOLFDEOH SHUPLWV IRU DOO VSHFLDO HYHQWV LQ ZKLFKDOFRKROZLOOEHVHUYHG
LQFOXGLQJD6SHFLDO(YHQWV3HUPLW DQG
DQ $%& SHUPLW ,I GULQNLQJ RI DOFRKROLF EHYHUDJHV LV DSSURYHG E\ 6SHFLDO(YHQWSHUPLW/HVVHHDJUHHVWROLPLWWKHGULQNLQJRIDOFRKROLF EHYHUDJHVRQWKH/HDVHG3UHPLVHVLQDFFRUGDQFHZLWKDOODSSOLFDEOH VWDWH DQG ORFDO OHJDO UHTXLUHPHQWVDQG DJUHHV WR GLOLJHQWO\HQIRUFH VXFKOLPLWDWLRQ
LL /HVVHHDJUHHVWRSURYLGHDGGHGVHFXULW\IRU6SHFLDO(YHQWV KHOGDV UHDVRQDEO\QHFHVVDU\EDVHGXSRQWKHQDWXUHRIWKHHYHQWZKHWKH U DOFRKROLFEHYHUDJHVZLOOEHVHUYHGWKHQXPEHURISHUVRQVDWWHQGLQJ DQG WKH WLPLQJRI VXFK HYHQWV WR WKH &LW\¶V UHDVRQDEOH VDWLVIDFWLRQ DQG WR HQVXUH WKDW WKH &LW\¶V SURSHUW\ DQG RSHUDWLRQV DUH QRW DGYHUVHO\DIIHFWHGE\/HVVHH¶VXVHRIWKH3UHPLVHV
LLL $SSURYDORIHDFK6SHFLDO(YHQWVKDOOEHH[FOXVLYHO\SURYLG HGE\WKH &LW\WKURXJKWKHSHUPLWWLQJSURFHVV7KH/HDVH$JUHHPHQWGRHVQRW FRQVWLWXWHDSSURYDORIDQ\6SHFLDO(YHQWVSRQVRUHGE\/HVVHH ) 2XWVLGHYHQGRUVDUHQRWDSSURYHGWRFRQGXFWEXVLQHVVIURPWK H3UHPLVHVXQOHVV VSHFLILFDOO\DSSURYHGE\WKH&LW\WKURXJKWKH6SHFLDO(YHQWVSHUPLWSURFHVV * 7KH&LW\DQG/HVVHHVKDOOFRRSHUDWHDQGRSHUDWHWKHOLJKWHP LWWLQJGLRGH /('

DFFHQWOLJKWLQJV\VWHPIRUWKHH[WHULRURIWKH:DWHU7RZHU7 KH/HVVHHPD\QRW FKDQJHWKHSURJUDPPLQJRIWKH/('DFFHQWOLJKWLQJV\VWHPZLWKRXWDSSURYDOIURP WKH&LW\
+ 7KH /HVVHH VKDOO EH DXWKRUL]HG WR RSHUDWH WKH DQQXQFLDWRU KRUQ DW WKH :DWHU 7RZHURQFHSHUGD\IRUVHFRQGVDWQRRQ7KHDQQXQFLDWRU KRUQVKDOOQRW EHRSHUDWHGDWDQ\RWKHUWLPH2SHUDWLRQRIWKHDQQXQFLDWRUKRUQVKDOOEHVXEMHFW WR )UHVQR 0XQLFLSDO &RGH &KDSWHU  $UWLFOH  1RVLH 5HJXODWL RQV ,I WKH DQQXQFLDWRU KRUQ EHFRPHV LQRSHUDEOH RU UHTXLUHV UHSDLU DQG UHIXUELVKPHQW WKH FRVWVIRUWKHZRUNVKDOOEHLQFXUUHGE\WKH/HVVHH7KH&LW\V KDOOQRWLQFXUFRVWV WRUHSDLURUUHIXUELVKWKHDQQXQFLDWRUKRUQ
, 7KH /HVVHH VKDOO EH DXWKRUL]HG WR SXUFKDVH DQG LQVWDOO WDEOH V XPEUHOODV DQG FKDLUVIRUWKHLQWHULRUDQGH[WHULRURIWKH:DWHU7RZHUIRUFXVWRPHUVHDWLQJDQGQR LWHPV PD\ EH IL[HG RU DQFKRUHG WR WKH JURXQG DQG VKDOO UHPDLQ P RELOH DQG SRUWDEOH$OOFRVWVIRUWDEOHFKDLUVDQGXPEUHOODVVKDOOEH WKHVROHUHVSRQVLELOLW\ RIWKH/HVVHH
- 7KH/HVVHHPD\LQVWDOOFDIpVWULQJOLJKWV6WUXFWXUDODWWDF KPHQWRUVXSSRUWIURP WKH :DWHU 7RZHU VWUXFWXUH LV SURKLELWHG  /HVVHH LV UHVSRQVLEOH IRU REWDLQLQJ DOO $"


%











3DJHRI
SHUPLWVDQGDSSURYDOVQHFHVVDU\IRULQVWDOODWLRQRIWKHVHOLJKW V/HVVHPD\RQO\ XWLOL]HDSRZHUVRXUFHZKLFKLVPHWHUHGVHSDUDWHO\IRULWVRZQRSHUDWLRQV . 7KH /HVVHH VKDOO EH SURKLELWHG IURP XVLQJ SHUPLWWLQJ RU DOORZLQJ WKH /HDVHG 3UHPLVHVRUDQ\SDUWWKHUHRIWREHXVHGIRUDQ\RWKHUSXUSRVHH[FHSWDVDFRIIHH VKRSDVGHILQHGLQ6HFWLRQ
/ ,IWKH/HVVHHUHTXHVWV&LW\0DQDJHUDSSURYDOIRUFKDQJHGRU DGGHGXVHVIRUWKH 3UHPLVHV /HVVHH VKDOO FKDQJH RU PRGLI\ WKH EXVLQHVV OLFHQVH WR U H I O H F W W K H  FKDQJHGRUDGGHGXVHVDQGWKH&LW\0DQDJHUVKDOOLQFUHDVHWKH PRQWKO\/HDVH 3D\PHQWV SDLG E\ WKH /HVVHH IRU WKH FKDQJHG RU DGGHG XVHV DQG DPHQG WKH LQVXUDQFHUHTXLUHPHQWV
0 /HVVHHPD\RQO\SODFHRUPRXQWVLJQVRQWKHLQWHULRURIWKH:DWHU7RZHUWKDWDUH XVXDODQGFXVWRPDU\IRUDFRIIHHVKRS7KHSODFLQJDQGPRXQWLQJ RIVLJQVRQWKH LQWHULRURIWKH:DWHU7RZHUVKDOOFRQIRUPWRWKHUHJXODWLRQVRIWKH)UHVQR0XQLFLSDO &RGH DQG QRW YLRODWH RU FRPSURPLVH WKH :DWHU 7RZHU¶V UHJLVWHUHG K L V W R U L F  GHVLJQDWLRQV
1 /HVVHH PD\ LQVWDOO RQH IUHHVWDQGLQJ EXVLQHVV VLJQ DW /HVVHH¶V RZQ H[SHQVH /HVVHH LV UHVSRQVLEOH IRU REWDLQLQJ DOO SHUPLWV DQG DSSURYDOV Q HFHVVDU\ IRU LQVWDOODWLRQRIVLJQ
2 /HVVHH PD\ XWLOL]H IUHHVWDQGLQJ QRQSHUPDQHQW $IUDPH VLJQ DJH ZLWKLQ WKH /HDVHG3UHPLVHV
3 /HVVHHVKDOOFRPSO\DW/HVVHH
VVROHFRVWDQGH[SHQVHZLWK DOODSSOLFDEOH/HJDO
5HTXLUHPHQWV ZKHQ FRQGXFWLQJ /HVVHH
V DFWLYLWLHV DQG /HVVHH VKDOO REWDLQ DW
/HVVHH
VVROHFRVWDQGH[SHQVHDQ\DQGDOOQHFHVVDU\SHUPLWVDXWKRUL]DWLRQVDQG DSSURYDOVDSSOLFDEOHWR/HVVHH¶VDFWLYLWLHV7KH&LW\VKDOOKD YHDULJKWWRREVHUYH /HVVHH
V DFWLYLWLHV DW DQ\ WLPH WR FRQILUP /HVVHH
V FRPSOLDQFH ZLWK WKH
UHTXLUHPHQWVRIWKLV/HDVHDQGDSSOLFDEOHODZV
4 /HVVHH VKDOO REWDLQ DQG PDLQWDLQ LQ JRRG VWDQGLQJ D &LW\ RI )UHVQR EXVLQHVV OLFHQVH
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
V XVH DQG RFFXSDQF\ RI WKH 3UHPLVH V LQFOXGLQJ HQYLURQPHQWDO ODZV DQG OHJDO UHTXLUHPHQWV UHJDUGLQJ WKH VDOH RI DOFRKRO 7KH MXGJPHQW RI DQ\ FRXUW RI FRPSHWHQW MXULVGLFWLRQ RU /HVVHH V DG PLVVLRQ LQ D
SURFHHGLQJ EURXJKW DJDLQVW /HVVHH E\ DQ\ JRYHUQPHQW HQWLW\ WKDW /HVVHH KDV YLRODWHG DQ\ VWDWXWH RUGLQDQFH UHJXODWLRQ RU UHTXLUHPHQW ZLO O EH FRQFOXVLYH EHWZHHQ/DQGORUGDQG/HVVHHDQG ZLOOEHJURXQGVIRUWKH/DQGORU GWRWHUPLQDWH WKLV$JUHHPHQW
$"


%











3DJHRI
6(&7,21:$67(18,6$1&(81/$:)8/86(352+,%,7('
$ /HVVHHVKDOOGRDOORIWKHIROORZLQJ

D $WDOOWLPHVFRRSHUDWHZLWKWKH&LW\WRNHHSDQGPDLQWDLQWK H3UHPLVHVDQG FRPPRQDUHDVLQDQHDWFOHDQDQGRUGHUO\FRQGLWLRQ
E 6KDOOUHPRYHZDVWHPDWHULDOVDQGWUDVKGDLO\IURPWKH3UHPLV HVWRSUHYHQW WKHDFFXPXODWLRQRIZDVWHPDWHULDOVZKLFKPLJKWFRQVWLWXWHDIL UHKD]DUG SXEOLFKHDOWKKD]DUGRUSXEOLFQXLVDQFH
F 1RW XVH RU SHUPLW WKH 3UHPLVHV RU FRPPRQ DUHDV WR EH XVHG IR U DQ\ XQODZIXOSXUSRVH
G &RPSO\ZLWKFLW\QRLVHRUGLQDQFHV
6(&7,21
48,(7(1-2<0(17
$ 1HLWKHUSDUW\VKDOOGRDQ\DFWZKLFKPD\RUGRHVGLVWXUEWKH TXLHWHQMR\PHQWRI WKH3UHPLVHVE\WKHRWKHUSDUW\
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
D 8SRQ UHFHLYLQJ ZULWWHQ DSSURYDO IURP WKH &LW\ 0DQDJHU WR XQG HUWDNH DOWHUDWLRQV UHSDLUV DQG LPSURYHPHQWV LQFOXGLQJ WUDGH IL[WXUH V IRU WKH 3UHPLVHV /HVVHH VKDOO EH VROHO\ UHVSRQVLEOH IRU DOO FRVWV UHTX LUHG WR FRPSOHWHWKHDOWHUDWLRQUHSDLUDQGLPSURYHPHQWSURMHFWV E :LWK H[FHSWLRQ WR /HVVHH¶V WUDGH IL[WXUHV DOO DOWHUDWLRQV UHSDLUV DQG LPSURYHPHQWVXQGHUWDNHQE\WKH/HVVHHVKDOOEHFRPHWKHSURSHUW\ RIWKH &LW\VXEMHFWWR/HVVHH¶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¶VVROH H[SHQVHLQFOXGLQJWKHFRVWRIUHSDLURIDQ\GDPDJHWRWKH/HDVHG3UHPLVHV $"


%











3DJHRI
FDXVHG E\WKH UHPRYDO RU /DQGORUG PD\ HOHFW WR UHPRYH WKHDEDQGRQHG WUDGHIL[WXUHVDWDFRVWWREHELOOHGWR/HVVHH
% 7KH /HVVHH VKDOO NHHS WKH 3UHPLVHV IUHH IURP DQ\ OLHQV DQG H QFXPEUDQFHV EHFDXVHRIZRUNGRQHPDWHULDOVIXUQLVKHGRUREOLJDWLRQVLQFXU UHGE\/HVVHHLQ FRQQHFWLRQ ZLWK DQ\ DOWHUDWLRQ DGGLWLRQ RU LPSURYHPHQW RQ RUWR WKH 3UHPLVHV /HVVHHVKDOOGHIHQGDQGKROGKDUPOHVVWKH&LW\IURPDQ\FRVWRU H[SHQVHZKLFK WKH&LW\VKDOOLQFXUEHFDXVHRIDQ\VXFKOLHQRUHQFXPEUDQFH & )URPWLPHWRWLPHWKH&LW\PD\FRQVWUXFWLPSURYHPHQWVWRWK H/HDVHG3UHPLVHV RU 3UHPLVHV RU FRPPRQ DUHDV /HVVHH ZLOO DOORZ WKH &LW\ DFFHVV QHHGHG WR FRPSOHWHWKHZRUN8SRQUHDVRQDEOHQRWLFH
DWOHDVWKRXUV
 /HVVHHZLOODOORZ
WKH&LW\DQ\DFFHVVQHHGHGWRFRPSOHWHWKHZRUN
6(&7,210$,17(1$1&($1'5(3$,56
$ 7KH/HVVHHDW/HVVHH¶VRZQFRVWDQGH[SHQVHVKDOO 
D $WLWVVROHFRVWDQGH[SHQVH/HVVHHVKDOOXQGHUWDNHWKHURX WLQHFOHDQLQJ DQGPDLQWHQDQFHWRWKH3UHPLVHV7KH3UHPLVHVVKRXOGEHPDLQWDL QHGLQ JRRGRUGHUFRQGLWLRQDQGUHSDLU/HVVHH
VREOLJDWLRQVWRPDLQWDLQ/HDVHG
3UHPLVHV VKDOO LQFOXGH ZLWKRXW OLPLWDWLRQ ZLQGRZV LQWHULRU DQG H[WHULRU

GRRUV
LQWHULRU DQG H[WHULRU
 DQG WKH LQWHULRU ZDOOV IORRUV OLJKWLQJ DQG FHLOLQJV  /HVVHH LV UHVSRQVLEOH IRU PDLQWHQDQFH DQG UHSDLU RI LWV RZQ LPSURYHPHQWV  /HVVHH VKDOO UHSDLU DOO QRQVWUXFWXUDO GDPDJH WR  WKH 3UHPLVHV DQG DGMDFHQW FRPPRQ DUHDV DQG LQ IXOO FRPSOLDQFH ZLWK D O O  PDLQWHQDQFHDQGUHSDLUVWDQGDUGVHVWDEOLVKHGE\VWDWXWHRUGLQD QFHUXOH RUUHJXODWLRQRIDQ\JRYHUQPHQWDOERG\ZLWKRXWH[SHQVHWRWKH&LW\ E /HVVHH¶V PDLQWHQDQFH REOLJDWLRQV GR QRW H[WHQG WR WKH SDUWV RI WKH 3UHPLVHV WKDW WKH &LW\ LV REOLJDWHG WR UHSDLU DQG PDLQWDLQ DV RXWOLQHG LQ 6HFWLRQ  RI WKH $JUHHPHQW ,Q DQ HPHUJHQF\ WKH &LW\ PD\ PDNH WKH QHFHVVDU\UHSDLUVIRUWKH/HVVHHRUSHUIRUPWKHQHFHVVDU\PDLQWHQDQFHIRU WKH/HVVHH/HVVHHZLOOUHLPEXUVHWKH&LW\IRUVXFKUHSDLUVRUPDLQWHQDQFH RQGHPDQGZLWKLQWHUHVWDWWKHPD[LPXPUDWHWKHQSHUPLWWHGE\ODZ F /HVVHHVKDOOEHUHVSRQVLEOHIRUFOHDULQJEORFNHGWRLOHWVWR WKHH[WHQWDWRLOHW SOXQJHUFDQUHVROYHWKHREVWUXFWLRQV
G /HVVH VKDOO EH UHVSRQVLEOH IRU JHQHUDO XSNHHS RI GHFRPSRVHG JUDQLWH

SODQWHU
V
7KLVLQFOXGHVPHFKDQLFDOZHHGDEDWHPHQWDQGFRQWDL QPHQWRI GHFRPSRVHGJUDQLWHPDWHULDOVWKURXJKJHQHUDOVZHHSLQJDQGXSNHHS H 8SRQUHTXHVWRIWKH&LW\/HVVHHVKDOODVVLVWWKH&LW\ZLWKPDQXDOO\ZDWHULQJ DQ\ QHZ SODQWPDWHULDOV LQVWDOOHGE\ WKH &LW\ RQ WKH 3UHPLVHV:DWHULQJ VKDOOEHSHUIRUPHGLQFRPSOLDQFHZLWK)UHVQR0XQLFLSDO&RGHUHJXODWLRQV I /HVVHHKHUHE\ZDLYHVDOOULJKWVXQGHU6HFWLRQ
RIWKH&D OLIRUQLD&LYLO
&RGHWRPDNHUHSDLUVDW/DQGORUG
VH[SHQVHDQGZDLYHVDQ\ULJKWVXQGHU
&DOLIRUQLD&LYLO&RGH6HFWLRQ
UHJDUGLQJ/DQGORUG
VREOLJDWLRQVWR
PDLQWDLQWHQDQWDELOLW\
% 7KH &LW\ DW &LW\¶V RZQ FRVW DQG H[SHQVH DQG VXEMHFW WR WKH  &LW\ &RXQFLO V
GLVFUHWLRQDU\DSSURSULDWLRQRIIXQGVVKDOO

$"


%











3DJH
RI
D 0DLQWDLQ WKH VWUXFWXUDO HOHPHQWV RI WKH 3UHPLVHV LQ JRRG FRQGLWLRQ DQG UHSDLU)RUSXUSRVHVRIWKLVVHFWLRQ6WUXFWXUDO(OHPHQWVPHDQVWKHH[WHULRU URRI H[WHULRU ZDOOV
H[FHSW ZLQGRZ JODVV DQG GRRUV
 VWUXFWXUDO VXSSRUWV
DQGWKHIRXQGDWLRQ6WUXFWXUDO(OHPHQWVZLOODOVRLQFOXGHSOXPE LQJSLSHVWR WKHH[WHQWWKDWWKHSLSHVDUHDQLQWHJUDOSDUWRIWKHIORRULQJ RU IRXQGDWLRQ LQDFFHVVLEOHWR/HVVHH
E 3URYLGH DOO QHFHVVDU\ PDLQWHQDQFH DQG UHSDLU VHUYLFHV IRU DOO HOHFWULFDO PHFKDQLFDOSOXPELQJVHFXULW\DQGILUHSURWHFWLRQV\VWHPVLQVWDOOHGE\WKH &LW\VHUYLQJWKH3UHPLVHV
F 3URYLGH DOO QHFHVVDU\ PDLQWHQDQFH DQG UHSDLU WR WKH H[WHULRU  SHULPHWHU IHQFH
G 7KH&LW\VKDOOHQGHDYRUWRFRRUGLQDWHURXWLQHPDLQWHQDQFHDQGUHSDLUVZLWK WKH/HVVHH7KLVFRXUWHV\GRHVQRWH[WHQGWRXUJHQWHPHUJHQF\UHSDLUV H 3URYLGH ODQGVFDSH PDLQWHQDQFH IRU WKH 3UHPLVHV  7KH &LW\ VKDOO PDNH UHDVRQDEOHHIIRUWVWRFRRUGLQDWHWKHVFKHGXOLQJRIODQGVFDSLQJDFWLYLWLHVIRU WKH3UHPLVHVZLWKWKH/HVVHH
I 1RWZLWKVWDQGLQJ DQ\WKLQJ LQ WKLV VHFWLRQ WR WKH FRQWUDU\ /H VVHH VKDOO SURPSWO\ UHSDLU DQ\ VWUXFWXUDO HOHPHQWV WKDW QHHG UHSDLU EHFDXVH RI WKH QHJOLJHQFHRURWKHUIDXOWRI/HVVHHLWVHPSOR\HHVDJHQWVRULQYLWHHV & $'$&RPSOLDQFH 0RGLILFDWLRQVFKDQJHVRUFRQVWUXFWLRQRIW KH3UHPLVHVPD\ EH QHFHVVDU\ WR HQVXUH FRPSOLDQFH ZLWK WKH $PHULFDQV ZLWK 'LVDELOLWLHV $FW ,I PRGLILFDWLRQV DUH UHTXLUHG WKH\ PXVW EH PDGH DFFRUGLQJ WR WKH WHUPV RI WKLV $JUHHPHQW
6(&7,21  $/7(5$7,216 5(3$,56 $1' ,03529(0(176 2) 5(*,67(5(' +,6725,&$/5(6285&(
$ 7KH:DWHU7RZHUSRUWLRQRIWKH3UHPLVHVLVRQWKH1DWLRQDO5 HJLVWHURI+LVWRULF 3ODFHV DQG LV VXEMHFW WR DGGLWLRQDO UHTXLUHPHQWV SULRU WR DQ\ GLUHFW RU LQGLUHFW DOWHUDWLRQ UHPRGHOLQJ GHPROLVKLQJ JUDGLQJ UHPRYDO FRQVWUXF WLRQ UHFRQVWUXFWLRQ RU UHVWRUDWLRQ RI WKH H[WHULRU LQWHULRU RU DX[LOLDU\ EXLOGLQJV 7KH /HVVHH VKDOO EH UHVSRQVLEOH IRU FRPSO\LQJ ZLWK WKH UHTXLUHPHQWV RI WKH &LW\ RI )UHVQR0XQLFLSDO&RGH&KDSWHU$UWLFOH+LVWRULFDO3UHVHUYDWLRQ2UGLQDQFH DQGWKHFRQGLWLRQVGHVFULEHGEHORZ
H $Q\ DOWHUDWLRQ UHPRGHOLQJ GHPROLVKLQJ JUDGLQJ UHPRYDO F RQVWUXFWLRQ UHFRQVWUXFWLRQRUUHVWRUDWLRQRIWKHH[WHULRULQWHULRURUDX [LOLDU\EXLOGLQJV VKDOOFRQIRUPZLWKWKH6WDWH+LVWRULFDO%XLOGLQJ&RGHDQG8QLIR UP%XLOGLQJ &RQVHUYDWLRQ&RGH
I :LWKLQ WKH /HDVHG 3UHPLVHV UHVLGHV WDQJLEOH REMHFWV RI KLVWR ULFDO VLJQLILFDQFHWKDWWKURXJKWKHGXUDWLRQRIWKH/HDVH$JUHHPHQWZ LOOUHPDLQ WKHSURSHUW\RIWKH&LW\$QLQYHQWRU\RIWKHVHREMHFWVZLOOEH WDNHQSULRUWR WKHHIIHFWLYHGDWHRIWKH/HDVH$JUHHPHQW7KHDOWHULQJPRYLQJDQGVWRULQJ RIWKHVHKLVWRULFDOREMHFWVPXVWUHFHLYHSULRUZULWWHQDSSURYDO IURPWKH&LW\ 0DQDJHU7KH/HVVHHVKDOOEHOLDEOHIRUDQ\GDPDJHRUGHVWUXFWLRQRIWKHVH KLVWRULFREMHFWVDVRIUHVXOWRIWKH/HVVHH¶VDFWLRQVRUQHJOHFW $"


%











3DJHRI
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
L 7KH &LW\ 0DQDJHU DQG +LVWRULF 3UHVHUYDWLRQ &RPPLVVLRQ VKDOO KDYH WKH ULJKW WR UHMHFW WKH GUDZLQJV RU VSHFLILFDWLRQV RU DQ\ SDUW WKHUHRI RU DQ\ UHYLVLRQ WKHUHRI DV WR WKH SURSRVHG DUFKLWHFWXUDO VWUXFWXUDO  HOHFWULFDO PHFKDQLFDORUSOXPELQJGHVLJQ
TXDOLW\RIPDWHULDOVRUHTXLSPHQWVHOHFWHG

FRORUVFKHPH
RUDQ\IHDWXUHRIWKHSURSRVHGLPSURYHPHQWZKLFK WKH&LW\ 0DQDJHU RU +LVWRULF 3UHVHUYDWLR Q &RPPLVVLRQ GHWHUPLQH ZLOO FDXV H H[FHVVLYHGDPDJHRUDOWHUDWLRQGHJUDGHWKHDSSHDUDQFHRUFRPS URPLVH WKHKLVWRULFGHVLJQDWLRQRIWKH3UHPLVHV
M /HVVHHVKDOOEHERXQGE\DQGFRPSO\ZLWKDOODSSOLFDEOHSU RYLVLRQVRIWKH /DERU&RGHDQGVXFKRWKHU)HGHUDO6WDWHDQGORFDOODZVZKLFK DIIHFWWKH FRQGXFWRIWKHZRUN
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
P /HVVHH VKDOO REWDLQ DQGSD\IRU DOODSSOLFDWLRQVSHUPLWVDQG LQVSHFWLRQV UHTXLUHG E\ DQ\ JRYHUQPHQWDO DXWKRULW\ IRU DQ\ DOWHUDWLRQ UHSD LU RU LPSURYHPHQW PDGH RU LQVWDOOHG E\ /HVVHH RQ WKH /HDVHG 3UHPLVHV$ Q \  DSSURYDO RU FRQVHQW RI WKH &LW\ SURYLGHG IRU LQ WKLV VHFWLRQ VK DOO EH LQ DGGLWLRQ WR DQG VHSDUDWH DQG DSDUW IURP WKDW UHTXLUHG E\ DQ\ ODZ RU RUGLQDQFHJRYHUQLQJWKHLVVXDQFHRIDQ\VXFKSHUPLW
6(&7,21'$0$*(67225'(6758&7,212)7+(35(0,6(6 $ 7KH&LW\UHVHUYHVWKHULJKWWRUHVWULFWDFFHVVWRWKH/HDVHG 3UHPLVHVLQWKHHYHQW RIILUHHDUWKTXDNHVWRUPULRWFLYLOGLVWXUEDQFHRURWKHUFDVXDOW\RUHPHUJHQF\RU LQFRQQHFWLRQZLWK&LW\¶VUHVSRQVHWRRULIHPHUJHQF\UHSDLUVR UPDLQWHQDQFHDUH $"


%











3DJHRI
UHTXLUHGWRWKH&LW\¶VIDFLOLWLHV ZLWKLQRULQWKHYLFLQLW\RI WKH/HDVHG3UHPLVHV RU
RWKHUZLVHZKHQWKH&LW\GHHPVLWDGYLVDEOHWRGRVR
% ,IWKH/HDVHG3UHPLVHVDUHGDPDJHGRUGHVWUR\HGWKH&LW\PD\HOHFWWRWHUPLQDWH WKLV /HDVH $JUHHPHQW 7KH FRPSOHWH GHVWUXFWLRQ RI WKH /HDVHG 3UHPLVHV VKDOO WHUPLQDWH WKLV /HDVH$JUHHPHQWDVRIWKH GDWH RI WKH FDVXDOW\/HVVHH VKDOOEH OLDEOH WR WKH &LW\ IRU DOO GDPDJHV UHVXOWLQJ IURP VXFK GHVWUXFW LRQ FDXVHG E\ /HVVHH
VLWVDJHQW
VVHUYDQW
VRUHPSOR\HH
VZDQWRIRUGLQDU\ FDUHRUGHJUHHRI
JUHDWHUFXOSDELOLW\
6(&7,21(0,1(17'20$,1&RQGHPQHGDQGULJKWRIHPLQHQW GRPDLQPHDQ WKHULJKWRIWKHJRYHUQPHQWWRWDNHSURSHUW\IRUSXEOLFXVHDQG VKDOOLQFOXGHWKHLQWHQWLRQ WR FRQGHPQ H[SUHVVHG LQ ZULWLQJ DV ZHOO DV WKH ILOLQJ RI DQ\ DFWLRQ RU SURFHHGLQJ IRU FRQGHPQDWLRQ,IDERG\RUHQWLW\KDYLQJWKHSRZHUWRGRVRFRQGHPQVEHJLQVDQDFWLRQ RU SURFHHGLQJ WR FRQGHPQ RU DGYLVHV /DQGORUG RU /HVVHH LQ ZULW LQJ RI LWV LQWHQW WR FRQGHPQDOORUSDUWRIWKH3UHPLVHVWKHQWKHIROORZLQJVKDOODSSO\ 
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
% /HVVHHVKDOOKDYHQRFODLPDJDLQVW/DQGORUGIRUDQGVKDOOQ RWEHHQWLWOHGWRDQ\ SDUW RI WKH VDOH RU FRQYH\DQFH SURFHHGV RU DQ\ FRQGHPQDWLRQ DZDUG /HVVHH KHUHE\DVVLJQVVXFKLQWHUHVWLIDQ\WKDW/HVVHHPD\KDYHXQGH UWKLV$JUHHPHQW WRDQ\SURFHHGVRUFRQGHPQDWLRQDZDUGWR/DQGORUG/HVVHHKRZHYHUPD\VHHN WRUHFRYHUDJDLQVWWKHFRQGHPQHUIRU/HVVHH¶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¶V SXU SRVHV DIWHU FRQGHPQDWLRQDWWKHVROHRSWLRQRI/DQGORUGWKLV$JUHHPHQWVKDOOUHPDLQLQHIIHFW DQG VKDOO QRW WHUPLQDWH 6XEMHFW WR DQ\ GLVFUHWLRQDU\ DSSURSULDWLRQV LI /DQGORUG HOHFWVWRFRQWLQXHWKH$JUHHPHQW/DQGORUGVKDOOUHSDLUDQGUHFRQVWUXFWWKH/HDVHG 3UHPLVHV 'XULQJ DQ\ UHSDLU DQG UHFRQVWUXFWLRQ DQG DIWHU /DQGORUG VKDOO DEDWH /HVVHH¶VUHQWDFFRUGLQJDQGWRWKHH[WHQWWKDW/HVVHH¶VXVHRI WKH3UHPLVHVIRU WKHSXUSRVHVLQWHQGHGDUHLPSDLUHG,I/DQGORUGHOHFWVWRWHUPLQDWHWKLV$JUHHPHQW WKH $JUHHPHQW ZLOO WHUPLQDWH RQ WKH GDWH WKH FRQGHPQHU WDNHV SK \VLFDO SRVVHVVLRQ
6(&7,2186(%<7+(&,7<
$ 7KH&LW\PD\XVHWKH/HDVHG3UHPLVHVIRUSXEOLFPHHWLQJVHYHQWVRURWKHUVLPLODU XVHVLI

$"


%











3DJHRI
D 7KH &LW\ QRWLILHV /HVVHH LQ ZULWLQJ WKLUW\

 FDOHQGDU GD\V SULRU WR DQ\
SURSRVHGXVH
DQG
E /HVVHHFRQVHQWVLQZULWLQJWRWKH&LW\
VSURSRVHGXVHZKLFK FRQVHQWVKDOO
RQO\EHZLWKKHOGLIWKHSURSRVHGXVHXQUHDVRQDEO\LQWHUIHUHVZL WK/HVVHH V
XVH
% 7KH&LW\VKDOOQRWEHUHTXLUHGWRSD\/HVVHHIRUDQ\VXFKXV H7KLVVHFWLRQLVQRW LQWHQGHG WR ZDLYH DQ\ ULJKWV RU REOLJDWLRQV HLWKHU SDUW\ PD\ KDYH SXUVXDQW WR *RYHUQPHQW&RGHVHFWLRQHWVHTLIDQ\
6(&7,21  7+( &,7< 2%/,*$7,216 &217,1*(17 21 $335235,$7,21 2)  )81'6
$ 7KH &LW\¶V REOLJDWLRQ WR SHUIRUP DQ\ REOLJDWLRQ XQGHU WKLV /HDVH $JUHHPHQW RU IXWXUH LPSURYHPHQWV VKDOO EH FRQWLQJHQW XSRQ WKH DSSURSULDWLRQRI IXQGVE\ WKH &LW\¶VJRYHUQLQJERG\VXIILFLHQWWRSURYLGHVXFKVHUYLFHVRUSD \PHQWVGXULQJWKH &LW\¶V UHVSHFWLYH ILVFDO \HDU
-XO\  WKURXJK -XQH 
 7KH SHU IRUPDQFH RI
REOLJDWLRQVVKDOOEHIXQGHGRQO\IURPFXUUHQWIXQGVEXGJHWHGD QGDSSURSULDWHG RQGHSRVLWLQDUHVHUYHIXQGRURWKHUZLVHOHJDOO\DYDLODEOHIRUIXQGLQJVXFKVHUYLFH REOLJDWLRQVWKURXJKRXWWKHWHUPRIWKH/HDVH$JUHHPHQWDQGLW LVQRWDSOHGJHRI WKH&LW\¶VIXOOIDLWKDQGFUHGLW'XULQJLWVDQQXDOEXGJHWLQJS URFHVVWKH&LW\VKDOO FRQVLGHUDQGZLOOXVHEHVWHIIRUWVWRDSSURSULDWHIXQGLQJWRPHHWLWVHVWLPDWHGFRVWV XQGHUWKLV/HDVH$JUHHPHQWIRUWKHILVFDO\HDUXQGHUFRQVLGHUDWLRQ 6(&7,215,*+72)(175<$1',163(&7,21
$ 5LJKWRI(QWU\DQG,QVSHFWLRQ7KH&LW\E\LWVRIILFHUVDJHQWVRUHPSOR\HHVVKDOO KDYHWKHULJKWWRHQWHURQWKH/HDVHG3UHPLVHVDWDOOUHDVRQDEOHWLPHVIRUSXUSRVHV RILQVSHFWLQJWKH/HDVHG3UHPLVHVDQGREVHUYLQJWKHSHUIRUPDQFH E\/HVVHHRI LWVREOLJDWLRQVXQGHUWKLV/HDVH$JUHHPHQW
% 7KH&LW\ZLOOPDNHUHDVRQDEOHHIIRUWVWRVFKHGXOHSODQQHGDOWHUDWLRQVUHSDLUVDQG

LPSURYHPHQWV
RUSHUIRUPLQJDQ\DFWZKLFKWKH&LW\LVREOLJDWHGWRSHUIRUPRUKDV WKHULJKWWRSHUIRUPXQGHUWKLV/HDVH$JUHHPHQWRURWKHUZLVH 6(&7,21'()$8/7%</(66((
$ 'HIDXOW'HILQHG7KHRFFXUUHQFHRIDQ\RIWKHIROORZLQJZLOO EHDPDWHULDOEUHDFK DQGDGHIDXOWRIWKLV$JUHHPHQW

D 3D\PHQW RI 0RQH\ /HVVHH¶V IDLOXUH WR SD\ UHQW RU WR PDNH DQ \ RWKHU SD\PHQWXQGHUWKLV$JUHHPHQWZLWKLQILYH

GD\VRIWKHGXHGDWH
E $EDQGRQPHQW /HVVHH
V DEDQGRQPHQW RU YDFDWLRQ RI WKH 3UHPLVH V
/HVVHH
VDEVHQFHIURPRUIDLOXUHWRFRQGXFWEXVLQHVVRQWKH3UH PLVHVIRU PRUH WKDQ  FRQVHFXWLYH GD\V ZLOO EH DEDQGRQPHQW RU YDFDWLRQ I RU SXUSRVHVRIWKLV$JUHHPHQW
F ,QVROYHQF\ /HVVHH GRHV DQ\ RI WKH IROORZLQJ

D
 /HVVHH PDN HV DQ\
JHQHUDO$VVLJQPHQWIRUWKHEHQHILWRIFUHGLWRUV
E
/HVVHHILOHVEDQNUXSWF\
RUDWKLUGSDUW\SHWLWLRQWRKDYH/HVVHHDGMXGJHGEDQNUXSWDQG GRHVQRW GLVPLVV WKH SHWLWLRQ ZLWKLQ  GD\V
F
 /HVVHH ILOHV D SHWLWLR Q IRU
UHRUJDQL]DWLRQRUDUUDQJHPHQWXQGHUDQ\ODZUHODWLQJWREDQNUXSWF\ G
WKH
DSSRLQWPHQWRIDWUXVWHHRUUHFHLYHUWRWDNHSRVVHVVLRQRIVXEV WDQWLDOO\DOO $"


%











3DJHRI
RI /HVVHH
V DVVHWV DW WKH 3UHPLVHV RU RI /HVVHH
V LQWHUHVW LQ WKLV
$JUHHPHQWDQGSRVVHVVLRQLVQRWUHVWRUHGWR/HVVHHZLWKLQGD\VRU H

WKH DWWDFKPHQW H[HFXWLRQ RU RWKHU MXGLFLDO VHL]XUH RI VXEVWDQW L D O O \ D O O R I  /HVVHH
VDVVHWVDWWKH3UHPLVHVRURI/HVVHH¶V,QWHUHVW,QWKLV$JUHHPHQW DQGWKDWVHL]XUHLVQRWGLVFKDUJHGZLWKLQGD\V
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

 GD\V ZULWWHQ QRWLFH RI WKH WHUPL QDWLRQ ,Q
DGGLWLRQ WKH /DQGORUGPD\ H[HUFLVH DQ\ RWKHU UHPHGLHV DYDLODEOH WR LW DW ODZ RU LQ HTXLW\ 1R DFW RI WKH /DQGORUG RWKHU WKDQ D ZULWWHQWHUPLQDWLRQ QRWLFHIURPWKH/DQGORUGWR/HVVHHZLOOWHUPLQDWHWKLV$JUHHPHQW I /DQGORUG
V5LJKWWR5HOHWLI/HVVHH%UHDFKHVWKLV$JUHHPHQW ,QWKHHYHQW RI/HVVHH¶VEUHDFKRIWKH$JUHHPHQWDQGDEDQGRQPHQWRIWKH3UHP LVHV /DQGORUGPD\HQWHUWKH3UHPLVHVDQGUHOHWLWWRDWKLUGSDUW\IRUDQ\WHUPDW DQ\UHQWDODQGRQDQ\RWKHUFRQGLWLRQVWKDW/DQGORUGLQLWVVR OHGLVFUHWLRQ PD\GHHPDGYLVDEOH7KH/DQGORUGPD\DOVRPDNHDOWHUDWLRQVDQG UHSDLUV WRWKH3UHPLVHV
J 7KH/DQGORUG
V5LJKWWR&XUH/HVVHH'HIDXOWV,I/HVVHHEUHD FKHVRUIDLOV WRSHUIRUPDQ\SURYLVLRQRIWKLV$JUHHPHQWWKH/DQGORUGDWLWVRSWLRQPD\ FXUH/HVVHH
VEUHDFK/HVVHHZ LOOUHLPEXUVHWKH/DQGORUGRQGH PDQGIRU WKH/DQGORUG
VFRVWVWRFXUHWKHGHIDXOW
K &XPXODWLYH 5HPHGLHV 7KH /DQGORUG
V UHPHGLHV LQ WKLV 6HFWLRQ D U H Q R W 
H[FOXVLYHEXWFXPXODWLYHDQGLQDGGLWLRQWRDOOUHPHGLHVQRZR UDIWHUWKLV DOORZHGE\ODZRUSURYLGHGHOVHZKHUHLQWKLV$JUHHPHQW L :DLYHURI%UHDFK,IWKH/DQGORUGZDLYHVDQ\/HVVHHEUHDFKRU GHIDXOWRI DQ\ $JUHHPHQW SURYLVLRQ WKH ZDLYHU ZLOO QRW EH D FRQWLQXLQJ ZDLYHU RU D ZDLYHURI/HVVHH
VVXEVHTXHQWEUHDFKRIWKHVDPHRUDQ\RWKHUS URYLVLRQ 7KH/DQGORUG
VDFFHSWDQFHRIUHQWVKDOOQRWEHDZDLYHURIDQ\ SUHFHGLQJ EUHDFK E\ /HVVHH RWKHU WKDQ WKH IDLOXUH WR SD\ WKH SDUWLFXODU UHQW VR DFFHSWHG
6(&7,21
7(50,1$7,212)$*5((0(17
$ ,QWKHHYHQWRIDGHIDXOWDVGHILQHGLQ6HFWLRQ WKH&LW\PD\WHUPLQDWHWKH/HDVH
DWWKHH[SLUDWLRQRIWKHGD\SHULRGIROORZLQJWKHQRWLFHRIFRUUHFWLRQ % (LWKHUSDUW\PD\WHUPLQDWHWKLV$JUHHPHQWE\JLYLQJDWOHDVWQLQHW\


GD\VSULRU
ZULWWHQQRWLFHWKHUHRI7KHUHQWVKDOOEHGXHDQGSD\DEOHWKURXJKDQGLQFOXGLQJWKH GDWHRIWHUPLQDWLRQ ,IWKH/HVVHHWHUPLQDWHVWKH$JUHHPHQWSULRUWRHQGRIWKH OHDVH¶VWHUPZLWKRXWFDXVHWKH/HVVHHIRUIHLWVWKH6HFXULW\'HSRVLW $"


%











3DJHRI
& 8SRQWKHH[SLUDWLRQRUHDUOLHUWHUPLQDWLRQRIWKLV/HDVHDW /HVVHH¶VVROHFRVWDQG H[SHQVH/HVVHHVKDOOUHPRYHDOORI/HVVHH¶VSHUVRQDOSURSHUW\DQGDOOGHEULVDQG ZDVWHPDWHULDOUHVXOWLQJIURP/HVVHH
VDFWLYLWLHV([FHSWIRURUGLQDU\ZHDUDQGWHDU
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¶V REOLJDWLRQV XQGHU WKLV VHFWLRQ VKDOO VXUYLYH WKH H[SLUDWLRQ RUWHUPLQDWLRQ RI WKLV /HDVH
' $Q\DPRXQWVRXWVWDQGLQJE\/HVVHHZLOOLPPHGLDWHO\EHFRPHGX HDQGRZLQJWR WKH&LW\,IWKH/HVVHHWHUPLQDWHVWKHDJUHHPHQWSULRUWRHQGR IWKHOHDVH¶VWHUP ZLWKRXWFDXVHWKH/HVVHHIRUIHLWVWKH6HFXULW\'HSRVLW 6(&7,215(35(6(17$7,2162)7+(&,7<
$ 3ULRU WR WKH H[HFXWLRQ RI WKLV /HDVH $JUHHPHQW ERWK /HVVHHDQG WKH &LW\ VKDOO LQVSHFWWKH/HDVHG3UHPLVHVWRGHWHUPLQHWKH³DVLV´FRQGLWLRQ % 1HLWKHUWKH&LW\QRUDQ\DJHQWRIWKH&LW\KDVPDGHDQ\UHSUHVHQWDWLRQRUSURPLVH ZLWK UHVSHFW WR WKH /HDVHG 3UHPLVHV H[FHSW DV KHUHLQ H[SUHVVO\ V H W I R U W K   ([HFXWLRQ RI WKH /HDVH $JUHHPHQW VKDOO EH FRQFOXVLYH HYLGHQFH DV DJDLQVW /HVVHHWKDWWKH/HDVHG3UHPLVHVZHUHLQJRRGDQGVDWLVIDFWRU\ FRQGLWLRQDWWKH WLPHRI/HDVH$JUHHPHQWZDVH[HFXWHGE\ERWKSDUWLHV
6(&7,21,1'(01,),&$7,21
$ 7RWKHIXUWKHVWH[WHQWDOORZHGE\ODZ/HVVHHVKDOOLQGHPQLI \KROGKDUPOHVVDQG GHIHQGWKH&LW\DQGHDFKRILWVRIILFHUVRIILFLDOVHPSOR\HHVDJHQWVDQGYROXQWHHUV IURP DQ\ DQG DOO ORVV OLDELOLW\ ILQHV SHQDOWLHV IRUIHLWXUHV FRVWV DQG GDPDJHV

ZKHWKHULQFRQWUDFWWRUWRUVWULFWOLDELOLW\LQFOXGLQJEXWQRWOLPLWHGWRSHUVRQDOLQMXU\ GHDWKDWDQ\WLPHDQGSURSHUW\GDPDJH
LQFXUUHGE\WKH&LW\/HVVHHRUDQ\RWKHU
SHUVRQ DQG IURP DQ\ DQG DOO FODLPV GHPDQGV DQG DFWLRQV LQ ODZ  RU HTXLW\

LQFOXGLQJUHDVRQDEOHDWWRUQH\
VIHHVOLWLJDWLRQH[SHQVHVDQG FRVWWRHQIRUFHWKLV

DJUHHPHQW
DULVLQJRUDOOHJHGWRKDYHDULVHQGLUHFWO\RULQGLU HFWO\RXWRIRUDUHLQ DQ\ZD\FRQQHFWHGZLWK/HVVHH¶VDFWLYLWLHVRUWKHHQWU\RQRFFXSDQF\RUXVHRI WKH3URSHUW\E\/HVVHHRU/HVVHH¶VUHSUHVHQWDWLYHVRUWKHH[HU FLVHE\/HVVHHRI /HVVHH¶VULJKWVKHUHXQGHURUWKHSHUIRUPDQFHRIRUIDLOXUHWR SHUIRUP/HVVHH¶V GXWLHVXQGHUWKLV$JUHHPHQWDQG/HDVHLQFOXGLQJEXWQRWOLPLWHGWR&ODLPVDULVLQJ RXWRI

L
LQMXU\WRRUGHDWKRISHUVRQVLQFOXGLQJEXWQRWO LPLWHGWRHPSOR\HHVRI /DQGORUG RU /HVVHH
DQG LQFOXGLQJ EXW QRW OLPLWHG WR LQMXU\ GXH WR H[SRVXUH WR 3RWHQWLDO(QYLURQPHQWDO+D]DUGVLQRQRUDERXWWKH3URSHUW\


LL
LQMXU\WRSURSHUW\
RU RWKHU LQWHUHVW RI  /DQGORUG /HVVHH RU D Q\ WKLUG SDUW\ 
LLL
 YLRODWLRQ RI DQ\
DSSOLFDEOH IHGHUDO VWDWH RU ORFDO ODZV VWDWXWHV UHJXODWLRQV  RU RUGLQDQFHV $"


%











3DJHRI
LQFOXGLQJ DOO /HJDO 5HTXLUHPHQWV UHODWLQJ WR WKH HQYLURQPHQW DQG LQFOXGLQJ DQ\ OLDELOLW\LPSRVHGE\ODZRUUHJXODW LRQZLWKRXWUHJDUGWRIDXOW /HVVHH¶VREOLJDWLRQV XQGHUWKHSUHFHGLQJVHQWHQFHVKDOODSSO\UHJDUGOHVVRIZKHWKHUWKH&LW\RUDQ\RI LWVRIILFHUVRIILFLDOVHPSOR\HHVDJHQWVRUYROXQWHHUVDUHQH JOLJHQWEXWVKDOOQRW DSSO\WRDQ\ORVVOLDELOLW\ILQHVSHQDOWLHVIRUIHLWXUHVFR VWVRUGDPDJHVFDXVHG VROHO\E\WKHJURVVQHJOLJHQFHRUFDXVHGE\WKHZLOOIXOPLVFRQ GXFWRI&LW\RUDQ\ RILWVRIILFHUVRIILFLDOVHPSOR\HHVDJHQWVRUYROXQWHHUV 
/HVVHHDFNQRZOHGJHVWKDWDOO&ODLPVDULVLQJRXWRIRULQDQ\ZD \FRQQHFWHGZLWK UHOHDVHV RU GLVFKDUJHV RI D +D]DUGRXV 6XEVWDQFH RU WKH H[DFHUE DWLRQ RI D 3RWHQWLDO(QYLURQPHQWDO+D]DUG RFFXUULQJDVDUHVXOWRI/HVVHH RULQFRQQHFWLRQ ZLWK/HVVHH¶VXVHRURFFXSDQF\RIWKH3URSHUW\/HVVHH¶VDFWLYLWLHVRUWKHDFWLYLWLHV RI DQ\ RI /HVVHH¶V UHSUHVHQWDWLYHV DQG DOO FRVWV H[SHQVHV DQG  OLDELOLWLHV IRU HQYLURQPHQWDO LQYHVWLJDWLRQV PRQLWRULQJ FRQWDLQPHQW DEDWHPHQ W UHPRYDO UHSDLU FOHDQXS UHVWRUDWLRQ UHPHGLDWLRQ DQG RWKHU UHVSRQVH FR VWV LQFOXGLQJ UHDVRQDEOH DWWRUQH\V¶ IHHV DQG GLVEXUVHPHQWV DQG DQ\ ILQHV DQG SHQDOWLHV LPSRVHGIRUWKHYLRODWLRQRIDQ\/HJDO5HTXLUHPHQWVUHODWLQJWRWKHHQYLURQPHQWRU KXPDQKHDOWKDUHH[SUHVVO\ZLWKLQWKHVFRSHRIWKHLQGHPQLW\VHWIRUWKDERYH 
/HVVHH¶V XVH DQG RFFXSDQF\ RI WKH 3URSHUW\ VKDOO EH DW /HVVHH¶V VROH ULVN DQG H[SHQVH/HVVHHDFFHSWVDOOULVNUHODWLQJWR/HVVHH
VRFFXSDQF \DQGXVHRIWKH
3URSHUW\7KH&LW\VKDOOQRWEHOLDEOHWR/HVVHHIRUDQG/HVV HHKHUHE\ZDLYHV DQG UHOHDVHV WKH &LW\ IURP DQ\ DQG DOO OLDELOLW\ ZKHWKHU LQ FRQWUDFW WRUW VWULFW OLDELOLW\ RU RQ DQ\ RWKHU EDVLV IRU DQ\ LQMXU\ GDPDJH RU ORVV UHVXOWLQJ IURP RU DWWULEXWDEOHWRDQRFFXUUHQFHRQRUDERXWWKH3URSHUW\ 
/HVVHHVKDOOWRWKHPD[LPXPH[WHQWSHUPLWWHGE\ODZLQGHPQLI\ SURWHFWGHIHQG DQGKROGWKH&LW\KDUPOHVVDJDLQVWFODLPVORVVHVFRVWV LQFOXGLQJDWWRUQH\V¶IHHV
DQGFRVWV
OLDELOLWLHVDQGGDPDJH VUHVXOWLQJIURPWKHIDLOXUH RI/HVVHHRUDQ\RI /HVVHH
VFRQVXOWDQWVFRQWUDFWRUVRUVXEFRQWUDFWRUVWRFRPSO\ ZLWKWKHLQVXUDQFH UHTXLUHPHQWVVHWIRUWKLQWKLV$JUHHPHQW,I/HVVHHVKDOOFRQWU DFWDQ\ZRUNRQWKH SUHPLVHV/HVVHHVKDOOUHTXLUHDOOVXEFRQWUDFWRUVWRLQGHPQLI\KROGKDUPOHVVDQG GHIHQGWKH&LW\LQDFFRUGDQFHZLWKWKHWHUPVDVVHWIRUWKDERYH 7KH SURYLVLRQV RI WKLV 6HFWLRQ VKDOO VXUYLYH WKH H[SLUDWLRQ RUWHUPLQDWLRQ RI WKLV /HDVH
6(&7,21$66,*10(17
$ /HVVHHVKDOOQRWDVVLJQVXEOHWRURWKHUZLVHWUDQVIHUWKLV /HDVH$JUHHPHQWDQ\ ULJKWRULQWHUHVWLQWKLV$JUHHPHQWDQ\ULJKWRILQWHUHVWLQW KH/HDVHG3UHPLVHVRU DQ\ LPSURYHPHQWV RQ WKH /HDVH 3UHPLVHV $Q\ HQFXPEUDQFH DVVLJQ PHQW VXEOHWWLQJRUWUDQVIHURIWKH/HDVH$JUHHPHQWZKHWKHUYROXQWDU\RULQYROXQWDU\E\ RSHUDWLRQ RI ODZ RU RWKHUZLVH VKDOO EH YRLG DQG VKDOO WHUPLQDW H WKH /HDVH $JUHHPHQW
6(&7,216855(1'(5$1'5(029$/
$ /HVVHHDJUHHVWRVXUUHQGHUWRWKH&LW\DWWKHH[SLUDWLRQRIWKH7HUPRIWKLV/HDVH RUDQ\H[WHQVLRQWKHUHRIRUSHULRGRIKROGLQJRYHURUXSRQDQ\VRRQHUWHUPLQDWLRQ RI WKH 7HUP WKH HQWLUH /HDVHG 3UHPLVHV DQG DOO DOWHUDWLRQV U HSDLUV LPSURYHPHQWV IXUQLWXUH WKHUHRQ FRPSOHWH DQG LQ JRRG FRQGLWLRQ  DQG UHSDLU $"


%











3DJHRI
UHDVRQDEOHXVHDQGZHDUWKHUHRIH[FHSWHG/HVVHHVKDOOKDYHWKHULJKWWRUHPRYH DOO SHUVRQDO SURSHUW\ EHORQJLQJ WR /HVVHH LQFOXGLQJ ZLWKRXW OLPLWDWLRQ SURGXFW LQYHQWRU\IRUFRIIHHVKRS$Q\RIVDLGSHUVRQDOSURSHUW\UHPDLQ LQJRQWKH/HDVHG 3UHPLVHV DIWHU WKH H[SLUDWLRQ RU VRRQHU WHUPLQDWLRQ RI WKH 7HUP RI WKLV /HDVH $JUHHPHQWRUDQ\H[WHQVLRQWKHUHRIRUSHULRGRIKROGLQJRYHU VKDOODWWKH&LW\ V
HOHFWLRQEHFRPHWKHSURSHUW\RIWKH&LW\$OOGDPDJHGRQHWRWKH/HDVHG3UHPLVHV RUDQ\LPSURYHPHQWWKHUHRQEHORQJLQJWRWKH&LW\E\RUGXULQJWKHUHPRYDOE\WKH &LW\RIVDLGSHUVRQDOSURSHUW\VKDOOEHUHSDLUHGE\/HVVHHDW/HVVHH VH[SHQVH
6(&7,213$<0(176127,&(6$1''(0$1'6
$ $OO UHQWV DQG RWKHU VXPV SD\DEOH E\ /HVVHH WR WKH &LW\ KHUHX QGHU VKDOO EH GHOLYHUHGLQSHUVRQRUPDLOHGWR

7KH&LW\RI)UHVQR)LQDQFH'HSDUWPHQW
0RQWKO\:DWHU7RZHU/HDVH3D\PHQW
)UHVQR6WUHHW
)UHVQR&DOLIRUQLD

$OO1RWLFHVDQG'HPDQGVEHWZHHQWKH&LW\DQG/HVVHHVKDOOEHGHOLYHUHGLQSHUVRQ RUPDLOHGWR

7R/HVVHH

'RZQWRZQ'HYHORSPHQW*URXS//&
FR$WWHQWLRQ
$OEHH6DQFKH]
)UHVQR6WUHHW
)UHVQR&$

3KRQH



7RWKH&LW\

&LW\RI)UHVQR
FR&LW\0DQDJHU
)UHVQR6WUHHW
)UHVQR&DOLIRUQLD

% $Q\QRWLFHUHTXLUHGRULQWHQGHGWREHJLYHQWRHLWKHUSDUW\ XQGHUWKHWHUPVRIWKLV /HDVH VKDOO EH LQ ZULWLQJ DQG VKDOO EH GHHPHG WR EH GXO\ JLYHQ LI GHOLYHUHG SHUVRQDOO\WUDQVPLWWHGE\HPDLOIROORZHGE\WHOHSKRQHFRQILUPD WLRQRIUHFHLSWRU VHQW E\ 8QLWHG 6WDWHV UHJLVWHUHG RU FHUWLILHG PDLO ZLWK SRVWDJH SUHSDLG UHWXUQ UHFHLSW UHTXHVWHG DGGUHVVHG WR WKH SDUW\ WR ZKLFK QRWLFH LV WR EH JLYHQ DW WKH SDUW\
V DGGUHVV VHW IRUWK RQ WKH VLJQDWXUH SDJH RI WKLV /HDVH RU DW VXFK RWKHU DGGUHVVDVWKHSDUWLHVPD\IURPWLPHWRWLPHGHVLJQDWHE\ZULWW HQQRWLFH1RWLFHV VHUYHG E\ 8QLWHG 6WDWHV PDLO LQ WKH PDQQHU DERYH GHVFULEHG VKDOO EH GHHPHG VXIILFLHQWO\VHUYHGRUJLYHQDWWKHWLPHRIWKHPDLOLQJWKHUHRI 6(&7,2158/(6$1'5(*8/$7,216
$ /HVVHHDJUHHVGXULQJWKHOLIHRIWKLV/HDVHWRFRPSO\ZLWKDQGFRQIRUPWRDOOUXOHV UHJXODWLRQV DQGRUGLQDQFHVRI WKH &LW\ RI )UHVQR DQG &RXQW\RI)UHVQR DQG DOO ODZV RI WKH 6WDWH RI &DOLIRUQLD DQG WKH 8QLWHG 6WDWHV DQG DOO RUGHUV RI DQ\ JRYHUQPHQWDODJHQF\ZKLFKVKDOOEHDSSOLFDEOHWR/HVVHH¶VXVHRIWKHVDLG/HDVHG 3UHPLVHV RU WKH EXVLQHVV WKHUHRQ EHLQJ FRQGXFWHG E\ /HVVHH 1RWKLQJ LQ WKLV /HDVHVKDOOEHFRQVWUXHGDVDOLPLWDWLRQRQWKH&LW\¶VSROLFHSRZHU $"


%











3DJHRI
% /HVVHH DFNQRZOHGJHV WKDW /HVVHH QRW WKH &LW\ LV UHVSRQVLEOH IRU GHWHUPLQLQJ DSSOLFDELOLW\RIDQGFRPSO\LQJZLWKDOOORFDOVWDWHDQGIHGHUDOODZV7KH&LW\PDNHV QRH[SUHVVRULPSOLHGUHSUHVHQWDWLRQDVWRWKHDSSOLFDELOLW\RULQDSSOLFDELOLW\RIDQ\ VXFKODZVWRWKLV/HDVHRUWKHSDUWLHVUHVSHFWLYHULJKWVRUREOLJDWLRQVKHUHXQGHU 6(&7,21$77251(<6
)((6
$ ,QWKHHYHQWDQ\DFWLRQVXLWRUSURFHHGLQJLVEURXJKWWRFR OOHFWDQ\UHQWDORURWKHU VXPVSD\DEOHRUWRWDNHSRVVHVVLRQRIWKH3UHPLVHVRUWRHQIRUFHFRPSOLDQFHZLWK DQ\ RI WKH FRYHQDQWV RU FRQGLWLRQV RI WKLV /HDVH WKH SDUW\ LQZKRVH IDYRU ILQDO MXGJPHQWLVHQWHUHGVKDOOEHHQWLWOHGWRUHDVRQDEOHDWWRUQH\V  IHHVIURPWKHRWKHU
SDUW\ WR EH IL[HG E\ WKH FRXUW LQ ZKLFK MXGJPHQW LV HQWHUHG LQ DGGLWLRQ WR WKH RUGLQDU\FRVWVRIVXLWDZDUGHGWRWKHSUHYDLOLQJSDUW\ 6(&7,21121:$,9(5
$ $Q\ZDLYHUE\HLWKHUSDUW\RIDQ\EUHDFKRIFRYHQDQWRUFRQG LWLRQUHTXLUHGKHUHLQ WR EH SHUIRUPHG DQG REVHUYHG VKDOO QRW EH GHHPHG RU FRQVLGHUHGD FRQWLQXLQJ ZDLYHUDQGVKDOOQRWRSHUDWHWRSUHYHQWVDLGSDUW\IURPGHFODUL QJDGHIDXOWIRUDQ\ VXEVHTXHQWEUHDFKHLWKHURIWKHVDPHFRYHQDQWRUFRQGLWLRQRURWKHUZLVH 6(&7,21(;&/86,9(9(18(
$ ([FOXVLYHYHQXHLQDOODFWLRQVDULVLQJXQGHUWKH/HDVHVKDOO EHDQGKHUHE\LVODLG LQ)UHVQR&RXQW\&DOLIRUQLD
6(&7,21
7,0(2)(66(1&(
$ 7LPHLVRIWKHHVVHQFHLQWKLV/HDVH$JUHHPHQW
6(&7,21(;7(172)$*5((0(17
$ 7KLV/HDVH$JUHHPHQWUHSUHVHQWVWKHHQWLUHDQGLQWHJUDWHGDJ UHHPHQWEHWZHHQ WKHSDUWLHVDQGVXSHUVHGHVDOOSULRUQHJRWLDWLRQVUHSUHVHQWDWLRQVRUDJUHHPHQWV HLWKHU ZULWWHQ RU RUDO 7KLV /HDVH $JUHHPHQW PD\ EH PRGLILHG RQO\ E\ ZULWWHQ LQVWUXPHQWGXO\DXWKRUL]HGDQGH[HFXWHGE\ERWKWKH&LW\DQG/HVVHH 6(&7,21123$571(56+,3
$ 7KH &LW\ GRHV QRW LQ DQ\ ZD\ RU IRU DQ\ SXUSRVH E\ H[HFXWLQ J WKLV /HDVH $JUHHPHQWEHFRPHDSDUWQHURI/HVVHHLQWKHFRQGXFWRI/HVVHH¶ VFRIIHHVKRS RURWKHUZLVHRUDMRLQWYHQWXUHSDUWQHURUDPHPEHURIDMRLQWSDUW\HQWHUSULVHZLWK /HVVHH 2SHUDWLRQ RI WKH FRIIHH VKRS DQG DQ\ DOWHUDWLRQV UHSD LUV DQG LPSURYHPHQWV FRPPLVVLRQHG E\ WKH /HVVHH ZLOO EH DW /HVVHH¶V VROH FRVW DQG H[SHQVHZLWKRXWVXEVLG\IURPWKH&LW\
6(&7,213523(57<7$;(6 3266(6625<,17(5(67
$ /HVVHH DFNQRZOHGJHV WKDW DQ\ SRVVHVVRU\ SURSHUW\ LQWHUHVW DULVLQJ E\ HQWHULQJ LQWRWKLV/HDVHPD\EHVXEMHFWWRSURSHUW\WD[DWLRQDQGWKDW/H VVHHVKDOOSD\DQ\ SURSHUW\WD[HVOHYLHGRQVXFKLQWHUHVW127,),&$7,2172/(66((38568$17 72 &$/,)251,$ 5(9(18( $1' 7$;$7,21 &2'( 6(&7,21   $
3266(6625< ,17(5(67 68%-(&7 72 3523(57< 7$;$7,21 0$< %( &5($7('%<(17(5,1*,1727+,6/($6($1'/(66((0$<%(68%-(&7 727+(3$<0(172)3523(57<7$;(6/(9,('2168&+,17(5(67 $"


%











3DJHRI
% /HVVHH ZLOO SD\ EHIRUH GHOLQTXHQF\ DOO WD[HV DVVHVVPHQWV DQGRWKHU FKDUJHV OHYLHG RU LPSRVHG E\ DQ\ JRYHUQPHQWDO HQWLW\ RQ WKH IXUQLWXUH WUDGH IL[WXUHV DSSOLDQFHV DQG RWKHUSHUVRQDO SURSHUW\ WKDW /HVVHH SODFHV LQRQ RUDERXW WKH 3UHPLVHV

& /HVVHHVKDOOLQGHPQLI\GHIHQGDQGKROGWKH/DQGORUGDQGWKH3UHPLVHVKDUPOHVV IURPDQ\OLDELOLW\IRUSHUVRQDOD QGUHDOSURSHUW\WD[HVDQGDVV HVVPHQWVLQFOXGLQJ ZLWKRXWOLPLWDWLRQDQ\LQWHUHVWSHQDOW\RURWKHUH[SHQVHUHO DWLQJWRWKHWD[HVRU DVVHVVPHQWVDQGIURPDQ\OLHQWKHUHIRUHRUVDOHRURWKHUSURFH HGLQJWRHQIRUFH SD\PHQWWKHUHRI
6(&7,21$0(1'0(176
$ 7KLV$JUHHPHQWPD\EHDPHQGHGRQO\E\DZULWWHQDJUHHPHQWPXWXDOO\DJUHHGWR DQGVLJQHGE\DOOSDUWLHV

>6,*1$785(6)2//2:211(;73$*(@

$"


%











3DJH
RI
,1 :,71(66:+(5(2) WKH SDUWLHVKDYHH[HFXWHGWKLV $JUHHPHQWDW  )UHVQR &DOLIRUQLDRQWKHGD\DQG\HDUILUVWDERYHZULWWHQ

&,7<2))5(612
D&DOLIRUQLDPXQLFLSDOFRUSRUDWLRQ

%\
 
*HRUJHDQQH$:KLWH
&LW\0DQDJHU

$33529('$672)250

$1'5(:-$1=
&LW\$WWRUQH\

%\
  
7UDF\3DUYDQLDQ 'DWH
$VVLVWDQW&LW\$WWRUQH\

$77(67

$0<.$//(5
,QWHULP&LW\&OHUN

%\
 
'HSXW\'DWH

'2:172:1'(9(/230(17*5283
//&D&DOLIRUQLDOLPLWHGOLDELOLW\FRPSDQ\

%\
 

1DPH
 

7LWOH
 

,I FRUSRUDWLRQ RU //& %RDUG &KDLU
3UHVRU9LFH3UHV


%\
 

1DPH
 

7LWOH
 

,IFRUSRUDWLRQRU//&&)2
7UHDVXUHU6HFUHWDU\RU$VVLVWDQW
6HFUHWDU\



$GGUHVVHV

7+(&,7<

7KH&LW\RI)UHVQR
FR&LW\0DQDJHU
)UHVQR6WUHHW
)UHVQR&DOLIRUQLD


/(66((

'RZQWRZQ'HYHORSPHQW*URXS//&
$WWHQWLRQ
$OEHH6DQFKH]
)UHVQR6WUHHW
)UHVQR&$

3KRQH




$WWDFKPHQWV

  ([KLELW$,QVXUDQFH5HTXLUHPHQWV

$"


%













!#
'

!#
'

&
!
&
!


3DJHRI
([KLELW$
,QVXUDQFH5HTXLUHPHQWV

D
 7KURXJKRXWWKHOLIHRIWKLV$JUHHPHQW/(66((VKDOOSD\IRU DQGPDLQWDLQLQIXOO IRUFHDQGHIIHFWDOOLQVXUDQFHDVUHTXLUHGKHUHLQZLWKDQLQVXUDQFHFRPSDQ\ LHV
HLWKHU
L

DGPLWWHG E\ WKH &DOLIRUQLD ,QVXUDQFH &RPPLVVLRQHU WR GR EXVLQHV V L Q W K H 6 W D W H R I  &DOLIRUQLDDQGUDWHGQROHVVWKDQ³$9,,´LQWKH%HVW¶V,QVXUDQ FH5DWLQJ*XLGHRU LL
DV
PD\EHDXWKRUL]HGLQZULWLQJE\WKH&,7<
65LVN0DQDJHURUKLVKHUGHVLJQHHDWDQ\WLPH
DQG LQ KLVKHU VROH GLVFUHWLRQ 7KH &,7< LWV RIILFHUV RIILFLDOV HPSOR\HHV DJHQWV DQG YROXQWHHUV
KHUHLQDIWHUUHIHUUHGWRFROOHFWLYHO\DV³&,7<´
UH TXLUHVSROLFLHVRILQVXUDQFH
DV VWDWHG KHUHLQ VKDOO PDLQWDLQ OLPLWV RI OLDELOLW\ RI QRW OHVV WKDQ WKRVH DPRXQWV VWDWHG WKHUHLQ+RZHYHUWKHLQVXUDQFHOLPLWVDYDLODEOHWRWKH&,7<V KDOOEHWKHJUHDWHURIWKH PLQLPXPOLPLWVVSHFLILHGWKHUHLQRUWKHIXOOOLPLWRIDQ\LQVXU DQFHSURFHHGVWRWKHQDPHG LQVXUHG

E
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³IDLO WR PDLQWDLQ DQ\ UHTXLUHG LQVXUDQFH´ VKDOO LQFOXGH ZLWKRX W OLPLWDWLRQ QRWLILFDWLRQ UHFHLYHG E\ WKH &,7< WKDW DQ LQVXUHU KDV FRPPHQFHG SURFHHGLQJV R U K D V K D G  SURFHHGLQJVFRPPHQFHGDJDLQVWLWLQGLFDWLQJWKDWWKHLQVXUHULVLQVROYHQW

F
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

 7KHPRVWFXUUHQWYHUVLRQRI,QVXUDQFH6HUYLFHV2IILFH ,62
 &RPPHUFLDO*HQHUDO
/LDELOLW\&RYHUDJH)RUP&*SURYLGLQJOLDELOLW\FRYHUDJHDULVLQJRXWRI\RXUEXVLQHVV RSHUDWLRQV 7KH &RPPHUFLDO *HQHUDO /LDELOLW\ SROLF\ VKDOO EH ZULWWHQ RQ DQ RFFXUUHQFH IRUPDQGVKDOOSURYLGHFRYHUDJHIRU³ERGLO\LQMXU\´³SURSHUW\GDPDJH´DQG³SHUVRQDODQG DGYHUWLVLQJLQMXU\´ZLWKFRYHUDJHIRUSUHPLVHVDQGRSHUDWLRQV LQFOXGLQJWKHXVHRIRZQHG
DQGQRQRZQHGHTXLSPHQW
SURGXFWVDQGFRPSOHWHGRSHUDWLRQVDQGFRQWUDFWXDOOLDELOLW\

LQFOXGLQJ ZLWKRXW OLPLWDWLRQ LQGHPQLW\ REOLJDWLRQV XQGHU WKH $JUHHPHQW  ZLWK OLPLWV RI
OLDELOLW\QRWOHVVWKDQWKRVHVHWIRUWKXQGHU³0LQLPXP/LPLWVRI,QVXUDQFH´  7KH PRVW FXUUHQW YHUVLRQ RI ,62
&RPPHUFLDO $XWR &RYHUDJH )R U P & $      
SURYLGLQJ OLDELOLW\ FRYHUDJH DULV LQJ RXW RI WKH RZQHUVKLS PDLQ WHQDQFH RU XVH RI DXWRPRELOHVLQWKHFRXUVHRI\RXUEXVLQHVVRSHUDWLRQV7KH$XW RPRELOH3ROLF\VKDOOEH ZULWWHQRQDQRFFXUUHQFHIRUPDQGVKDOOSURYLGHFRYHUDJHIRUDO ORZQHGKLUHGDQGQRQ RZQHGDXWRPRELOHVRURWKHUOLFHQVHGYHKLFOHV
&RGH$Q\$XWR

 :RUNHUV¶ &RPSHQVDWLRQ LQVXUDQFH DV UHTXLUHG E\ WKH 6WDWH RI &DOLIRUQLD DQG (PSOR\HU¶V/LDELOLW\,QVXUDQFH

$"


%











3DJHRI
0,1,080/,0,762),1685$1&(
/(66((RUDQ\SDUW\WKH/(66((VXEFRQWUDFWVFRQWUDFWVZLWKVK DOOPDLQWDLQOLPLWVRI OLDELOLW\RIQRWOHVVWKDQWKRVHVHWIRUWKEHORZ+RZHYHULQV XUDQFHOLPLWVDYDLODEOHWRWKH &,7<DQGHDFKRIWKHLURIILFHUVRIILFLDOVHPSOR\HHVDJHQWVDQGYROXQWHHUVDVDGGLWLRQDO LQVXUHGVVKDOOEHWKHJUHDWHURIWKHPLQLPXPOLPLWVVSHFLILHGKHUHLQRUWKHIXOOOLPLWRIDQ\ LQVXUDQFHSURFHHGVDYDLODEOHWRWKHQDPHGLQVXUHG

 &200(5&,$/*(1(5$//,$%,/,7<


L
 SHURFFXUUHQFHIRUERGLO\LQMXU\DQGSURSHUW\GD PDJH 

LL
 SHURFFXUUHQFHIRUSHUVRQDODQGDGYHUWLVLQJLQM XU\ 

LLL
 DJJUHJDWHIRUSURGXFWVDQGFRPSOHWHGRSHUDWLRQ V 

LY
 GDPDJHWRSUHPLVHVUHQWHGWR\RXDQG

LY
 JHQHUDODJJUHJDWHDSSO\LQJVHSDUDWHO\WRWKH$J UHHPHQW  &200(5&,$/$87202%,/(/,$%,/,7<

SHUDFFLGHQWIRUERGLO\LQMXU\DQGSURSHUW\GDPDJH  :25.(56¶&203(16$7,21,1685$1&(DVUHTXLUHGE\WKH6WDWHRI &DOLIRUQLD ZLWKVWDWXWRU\OLPLWVDQG(03/2<(5¶6/,$%,/,7<ZLWKOLPLWVRIOLDELOLW\QRWOHVVWKDQ 

L
 HDFKDFFLGHQWIRUERGLO\LQMXU\


LL
 GLVHDVHHDFKHPSOR\HH
DQG

LLL
 GLVHDVHSROLF\OLPLW
 3523(57<
  /LPLWV RI LQVXUDQFH LQ DQ DPRXQW HTXDO WR WKH IX OO 

UHSODFHPHQWFRVW
ZLWKRXWGHGXFWLRQIRUGHSUHFLDWLRQ
RI/(66((¶6EXVLQHVVSURSHUW\
80%5(//$25(;&(66,1685$1&(
,QWKHHYHQW/(66((SXUFKDVHVDQ8PEUHOODRU([FHVVLQVXUDQFHSROLF\ LHV
WRPHHWWKH
³0LQLPXP/LPLWVRI,QVXUDQFH´WKLVLQVXUDQFHSROLF\
LHV
VKDOO³IROORZIRUP´DQGDIIRUGQR
OHVV FRYHUDJH WKDQ WKH SULPDU\ LQVXUDQFH SROLF\
LHV
 ,Q DGGLWL RQ VXFK 8PEUHOOD RU
([FHVVLQVXUDQFHSROLF\
LHV
VKDOODOVRDSSO\RQDSULPDU\DQGQRQFRQWULEXWRU\EDVLVIRU WKH EHQHILW RI WKH &,7< DQG HDFK RI WKHLU RIILFHUV RIILFLDOV HPSOR\HHV DJHQWV DQG YROXQWHHUV
'('8&7,%/(6$1'6(/),1685('5(7(17,216
/(66((VKDOOEHUHVSRQVLEOHIRUSD\PHQWRIDQ\GHGXFWLEOHVFRQWDLQHGLQDQ\LQVXUDQFH SROLF\
LHV
UHTXLUHGKHUHLQDQG/(66((VKDOODOVREHUHVSRQVLEOHIRUSD\PHQWRIDQ\VHOI LQVXUHGUHWHQWLRQV
27+(5,1685$1&(3529,6,216(1'256(0(176
$OOSROLFLHVRILQVXUDQFHUHTXLUHGKHUHLQVKDOOEHHQGRUVHGWR SURYLGHWKDWWKHFRYHUDJH VKDOOQRWEHFDQFHOOHGQRQUHQHZHGUHGXFHGLQFRYHUDJHRULQ OLPLWVH[FHSWDIWHUWKLUW\


FDOHQGDUGD\VZULWWHQQRWLFHKDVEHHQJLYHQWRWKH&,7<H [FHSWWHQ 
GD\VIRU
QRQSD\PHQWRISUHPLXP/(66((LVDOVRUHVSRQVLEOHIRUSURYLGLQ JZULWWHQQRWLFHWRWKH &,7< XQGHU WKH VDPHWHUPVDQG FRQGLWLRQV 8SRQ LVVXDQFHE\ WKH LQVXUHU EURNHU RU DJHQW RI D QRWLFH RI FDQFHOODWLRQ QRQUHQHZDO RU UHGXFWLRQ LQ FRYHUDJH RU LQ OLPLWV /(66((VKDOOIXUQLVK&,7<ZLWKDQHZFHUWLILFDWHDQGDSSOLFDEOH HQGRUVHPHQWVIRUVXFK SROLF\
LHV
,QWKHHYHQWDQ\SROLF\LVGXHWRH[SLUHGXULQJW KHZRUNWREHSHUIRUPHGIRU WKH &,7< /(66(( VKDOO SURYLGH D QHZ FHUWLILFDWH DQG DSSOLFDEO H HQGRUVHPHQWV HYLGHQFLQJ UHQHZDO RI VXFK SROLF\ QRW OHVV WKDQ ILIWHHQ 
 FDOHQGDU GD\V SULRU WR WKH
H[SLUDWLRQGDWHRIWKHH[SLULQJSROLF\
7KH&RPPHUFLDO*HQHUDODQG$XWRPRELOH/LDELOLW\SROLFLHVRILQVXUDQFHVKDOOEHHQGRUVHG $"


%











3DJHRI
WRQDPHWKH&,7<LWVRIILFHUV RIILFLDOVHPSOR\HHVDJHQWVDQ GYROXQWHHUVDVDGGLWLRQDO LQVXUHGV
/(66((VKDOOHVWDEOLVKDGGLWLRQDOLQVXUHGVWDWXVIRUWKH&,7<D QGIRUDOORSHUDWLRQVE\ XVH RI ,62 )RUP &*     RU &*     RU E\ DQ H[HFXWHG PDQXVFULSW LQVXUDQFH FRPSDQ\ HQGRUVHPHQW SURYLGLQJ DGGLWLRQDO LQVXUHG VWDWXV DV EURDG DV WKDW FRQWDLQHGLQ,62)RUP&*RU&* 7KH&RPPHUFLDO*HQHUDODQG$XWRPRELOH/LDELOLW\SROLFLHVRILQVXUDQFHVKDOOEHHQGRUVHG VR /(66((¶V LQVXUDQFH VKDOO EH SULPDU\ DQG QR FRQWULEXWLRQ VKDOO EH UHTXLUHG RI WKH &,7<3ULPDU\DQG1RQ&RQWULEXWRU\FRYHUDJHXQGHUWKH*HQHUDO/LDELOLW\SROLF\VKDOOEH DVEURDGDVWKDWFRQWDLQHGLQ,62)RUP&*7KHFRYH UDJHVKDOOFRQWDLQQR VSHFLDOOLPLWDWLRQVRQWKHVFRSHRISURWHFWLRQDIIRUGHGWRWKH &,7<LWVRIILFHUVRIILFLDOV HPSOR\HHVDJHQWVDQGYROXQWHHUV
6KRXOG DQ\ RI WKH UHTXLUHG SROLFLHV SURYLGH WKDW WKH GHIHQVH FRVWV DUH SDLG ZLWKLQ WKH /LPLWV RI /LDELOLW\ WKHUHE\ UHGXFLQJ WKH DYDLODEOH OLPLWV E\ DQ\ GHIHQVH FRVWV WKHQ WKH UHTXLUHPHQWIRUWKH/LPLWVRI/LDELOLW\RIWKHVHSROLFLHVZLOOEHWZLFHWKHDERYHVWDWHGOLPLWV $OOSROLFLHVRILQVXUDQFHVKDOOFRQWDLQRUEHHQGRUVHGWRFRQWDLQDZDLYHURIVXEURJDWLRQ DVWRWKH&,7<LWVRIILFHUVRIILFLDOVHPSOR\HHVDJHQWVDQGYROXQWHHUV 7KH SURSHUW\ LQVXUDQFH SROLF\ LV WR FRQWDLQ RU EH HQGRUVHG WRFRQWDLQ WKH IROORZLQJ

SURYLVLRQV

 )XOOUHSODFHPHQWYDOXHRIDQ\SHUPDQHQWLPSURYHPHQWVRQWKH /HDVHG3UHPLVHV ZLWKWKH&,7<QDPHGDVD/RVV3D\HH
 7KHFRYHUDJHVKDOOFRQWDLQ


L
 1RFRLQVXUDQFHSHQDOW\

LL
 1ROLPLWDWLRQVRUH[FOXVLRQVIRUYDFDQF\RIDQ\SDUWRIWK H3UHPLVHV

LLL
 1RVSHFLDOOLPLWDWLRQVRQ WKHVFRSHRISURWHFWLRQDIIRUGHGWR&LW\ 3529,',1*2)'2&80(176/(66((VKDOOIXUQLVKWKH&,7<ZLWKDOOFHUWLILFDWH V
DQG
DSSOLFDEOH HQGRUVHPHQWV HIIHFWLQJ FRYHUDJH UHTXLUHG KHUHLQ  $OO  FHUWLILFDWHV DQG DSSOLFDEOHHQGRUVHPHQWVDUHWREHUHFHLYHGDQGDSSURYHGE\WKH &,7<¶65LVN0DQDJHU RU KLVKHU GHVLJQHH SULRU WR &,7<¶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


%












← All documents from this meeting