Agenda packet — Ontario City Council, March 1, 2022 (part 1 of 16)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting
MARCH 1, 2022
City Hall
303 East B Street, Ontario, CA 91764
MAYOR PAUL S. LEON • MAYOR PRO TEM ALAN D. WAPNER
COUNCIL MEMBERS JIM W. BOWMAN, DEBRA DORST-PORADA AND RUBEN VALENCIA CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

WELCOME TO A MEETING OF THE ONTARIO CITY COUNCIL
All documents for public review are on file with the Records Management/City Clerk's Department located at 303 East B Street, Ontario, CA 91764.

Anyone wishing to speak in person during public comment or on a particular item will be required to fill out a blue slip. Blue slips must be turned in prior to public comment beginning or before an agenda item is taken up. The Clerk will not accept blue slips after that time. To comment by email, submit your comments no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comments to [email protected]. All comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

Comments will be limited to 3 minutes. Speakers will be alerted when they have 1 minute remaining and when their time is up. Speakers are then to return to their seats and no further comments will be permitted.

In accordance with State Law, remarks during public comment are to be limited to subjects within Council's jurisdiction. Remarks on other agenda items will be limited to those items.

Remarks from those seated or standing in the back of the chamber will not permitted. All those wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

WEARING A MASK DURING THE PUBLIC MEETING IS STRONGLY ENCOURAGED.

If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at 909-395-2009. Notification of 48 hours prior to the meeting will help the CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1 ATTACHMENT: 20220301 Closed Session
City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS
The regular City Council and Housing Authority meeting begins with Closed Session and Closed Session Comment at 6:00 p.m., Public Comment at 6:30 p.m. immediately followed by the Regular Meeting and Public Hearings. No agenda item will be introduced for consideration after 10:00 p.m. except by majority vote of the City Council. (EQUIPMENT FOR THE HEARING IMPAIRED

AVAILABLE IN THE RECORDS MANAGEMENT OFFICE)

CALL TO ORDER (OPEN SESSION)

ROLL CALL
Wapner, Bowman, Dorst-Porada, Valencia, Mayor/Chairman Leon

CLOSED SESSION PUBLIC COMMENT
The Closed Session Public Comment portion of the Council/Housing Authority meeting is limited to a maximum of 3 minutes for each speaker and comments will be limited to matters appearing on the Closed Session. Additional opportunities for further Public Comment will be given during and at the end of the meeting.

CLOSED SESSION
GC 54956.8, CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: APN: 1048-562-01; 215 West C Street; City/Authority negotiator: Scott Ochoa or his designee; Negotiating parties: United Christian Church of Hacienda Heights; Under negotiation:

Price and terms of payment.

PLEDGE OF ALLEGIANCE
Mayor pro Tem Wapner

INVOCATION
Pastor Taylor Kern, Ontario United Reformed Church

REPORT ON CLOSED SESSION
City Attorney
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2 1. APPROVAL OF MINUTES
ATTACHMENT: 20220201 Minutes (Not official until approved).pdf

2. BILLS & PAYROLL

3. APPLICATION FOR CALIFORNIA OFFICE OF TRAFFIC SAFETY (OTS) FY22/23 SELECTIVE

TRAFFIC ENFORCEMENT PROGRAM (STEP) GRANT
PUBLIC COMMENTS 6:30 p.m.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes with each speaker given a maximum of 3 minutes. An opportunity for further Public Comment may be given at the end of the meeting. Under provisions of the Brown Act, Council is prohibited from taking action on oral requests.

To comment by email, submit your comments by email no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comment to [email protected]. All Comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and entered into the record. As previously noted -- if you wish to address the Council, fill out one of the blue slips at the rear of the chambers and give it to the City Clerk.

AGENDA REVIEW/ANNOUNCEMENTS
The City Manager will go over all updated materials and correspondence received after the Agenda was distributed to ensure Council Members have received them. He will also make any necessary recommendations regarding Agenda modifications or announcements regarding Agenda items to be considered.

CONSENT CALENDAR
All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below – there will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a specific item be removed from the Consent Calendar for a separate vote.

Each member of the public wishing to address the City Council on items listed on the Consent Calendar will be given a total of 3 minutes.

Minutes for the regular meetings of the City Council and Housing Authority of February 1, 2022, approving same as on file in the Records Management Department.

Bills January 28, 2022 through February 10, 2022, and Payroll January 16, 2022 through February 10, 2022 when audited by the Finance Committee.

That City Council authorize the City Manager or his designee to execute all documents necessary to apply for and accept a 12-month grant in the amount of $822,400 from the CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3 4. APPLICATION FOR THE CALIFORNIA OFFICE OF TRAFFIC SAFETY (OTS) FY22/23 RIDE- TOLIVE MOTORCYCLE TRAINING COURSE GRANT

5. AUTHORIZE THE PURCHASE OF FLEET VEHICLES

6. PURCHASE OF CALSENSE IRRIGATION CONTROLLERS

7. A RESOLUTION APPROVING AN IMPROVEMENT AGREEMENT AND IMPROVEMENT SECURITY FOR DEVELOPMENT PLAN NO. PDEV19-027 LOCATED AT THE SOUTHWEST

CORNER OF SAN ANTONIO AVENUE AND STATE STREET
ATTACHMENT: 20220301 Development Plan No. PDEV19-027^01 EXH A ATTACHMENT: 20220301 Development Plan No. PDEV19-027^02^RESO^RM

8. A RESOLUTION APPROVING ADDITIONAL FIRE DEPARTMENT CLASSIFICATIONS BE ADDED

TO THE TERMS AND CONDITIONS FOR ONTARIO FIRE DEPARTMENT RESPONSES TO AND

REIMBURSEMENTS FOR CALIFORNIA FIRE AND RESCUE MUTUAL AID SYSTEM REQUESTS California Office of Traffic Safety (OTS) for participation in the FY22/23 Selective Traffic Enforcement Program (STEP) Grant.

That City Council authorize the City Manager or his designee to execute all documents necessary to apply for and accept a 12-month grant in the amount of $29,000 from the California Office of Traffic Safety (OTS) for participation in the FY22/23 Ride-to Live Motorcycle Safety Training Course Grant.

That the City Council authorize the cooperative purchase and delivery of three (3) Autocar Automated Sideload trucks in the amount of $1,125,000 and two (2) Autocar Roll Off trucks in the amount of $570,000 for the Integrated Waste Department, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 060920-ATC.

That the City Council authorize the City Manager, or his designee, to execute the Goods and Services Agreement with SiteOne Landscape Supply of Cleveland, Ohio (on file in the Records Management Department) for the procurement of new Calsense Irrigation Controllers for citywide parks and medians in an amount not to exceed $296,817.

That the City Council adopt a Resolution approving an Improvement Agreement and Improvement Security for Development Plan No. PDEV19-027 located at the southwest corner of San Antonio Avenue and State Street.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

APPROVING AN IMPROVEMENT AGREEMENT AND IMPROVEMENT SECURITY FOR DEVELOPMENT PLAN NO. PDEV19-027 LOCATED AT THE SOUTHWEST CORNER OF SAN ANTONIO AVENUE AND STATE STREET.

That the City Council adopt a Resolution approving additional fire department classifications to the terms and conditions for Fire Department responses to California Fire and Rescue Mutual Aid System requests to assist State of California and Federal Fire Agencies.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4 ATTACHMENT: 20220301 Adding Fire Resources to CFAA^01 RESO^RM

9. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF A NOTIFICATION OF INTENT TO COMPLY WITH SB 1383

REGULATIONS FOR CALRECYCLE APPROVAL
ATTACHMENT: 20220301 Notification of Intent to Comply with SB 1383 Regulations RESO^RM
ATTACHMENT: 20220301 Notification of Intent to Comply with SB 1383 Regulations^02 EXH A

10. STATE LEGISLATIVE UPDATE
ATTACHMENT: 20220301 City of Ontario Bill List^01 EXH

11. A PUBLIC HEARING TO CONSIDER: (1) A GENERAL PLAN AMENDMENT (FILE NO. PGPA21- 004) FOR THE HOUSING ELEMENT UPDATE TO THE POLICY PLAN (GENERAL PLAN)

COMPONENT OF THE ONTARIO PLAN, ADDRESSING STATE MANDATES AND THE SIXTH

CYCLE REGIONAL HOUSING NEEDS ALLOCATION (RHNA) AND TO MODIFY THE POLICY PLAN LAND USE PLAN (EXHIBIT LU-01) TO ESTABLISH AN AFFORDABLE HOUSING OVERLAY; (2) A ZONE CHANGE (FILE NO. PZC21-002) MODIFYING THE OFFICIAL ZONING MAP TO ESTABLISH AN "AH" (AFFORDABLE HOUSING) OVERLAY ZONING DISTRICT; AND, (3) A DEVELOPMENT CODE AMENDMENT (FILE NO. PDCA21-001) REVISING SECTION

6.01.035 FOR THE PURPOSE OF ADDING PROVISIONS TO ESTABLISH AN "AH" (AFFORDABLE HOUSING) OVERLAY DISTRICT.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

APPROVING THE TERMS AND CONDITIONS FOR FIRE DEPARTMENT RESPONSE

AWAY FROM THEIR OFFICIAL DUTY STATION AND ASSIGNED TO AN EMERGENCY INCIDENT.

That the City Council adopt a Resolution authorizing the City Manager, or designee, to execute the Department of Resources Recycling and Recovery (CalRecycle) Notification of Intent to Comply with SB 1383 Regulations related documents, in a form approved by the City Attorney.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING A NOTIFICATION OF INTENT TO COMPLY WITH THE SB 1383 REGULATIONS.

That the City Council receive and file this report on State Budget and proposed bills.

PUBLIC HEARINGS
Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the public hearing. Affidavits of posting compliance, for all items below, are on file with the Records Management Department.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5 ATTACHMENT: 20220301 File Nos PGPA21-004 PZC21-002 PDCA21-001 CC^01 EXH AD ATTACHMENT: 20220301 HCD Draft Housing Element Comment Letter 12-13-21^02

ATTACH B
ATTACHMENT: 20220301 File Nos PGPA21-004 PZC21-002 PDCA21-001 ^03 PC Backup.pdf
That the City Council consider the following:

A. The adoption of a Resolution approving the use of an Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140); B. The adoption of a Resolution approving the General Plan Amendment, File No. PGPA21- 004, for the Housing Element Update to the Policy Plan component of The Ontario Plan, addressing State mandates and the Sixth Cycle Regional Housing Needs Allocation (RHNA) and to modify the Policy Plan Land Use Plan (Exhibit LU-01), establishing the Affordable Housing Overlay;
C. The introduction and waiving of further reading of an Ordinance approving the Zone Change, File No. PZC21-002, revising the Zoning Map to establish the "AH" (Affordable Housing) Overlay zoning district; and
D. The introduction and waiving of further reading of an Ordinance approving the Development Code Amendment, File No. PDCA21-001, adding provision to establish the "AH" (Affordable Housing) Overlay zoning district.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

APPROVING THE USE OF AN ADDENDUM TO THE ONTARIO PLAN
ENVIRONMENTAL IMPACT REPORT FOR FILE NOS. PGPA21-004, PZC21-002, AND PDCA21-001, FOR WHICH AN INITIAL STUDY WAS PREPARED IN ACCORDANCE

WITH THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, AND MAKING FINDINGS IN SUPPORT THEREOF.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PGPA21-004, A GENERAL PLAN AMENDMENT UPDATING THE

HOUSING ELEMENT OF THE POLICY PLAN AND AN AMENDMENT TO THE LAND USE ELEMENT OF THE POLICY PLAN, REVISING EXHIBIT LU-01, LAND USE PLAN,

ESTABLISHING AN AFFORDABLE HOUSING OVERLAY, AND MAKING FINDINGS IN SUPPORT THEREOF (PART OF CYCLE 1 FOR THE 2022 CALENDAR YEAR).

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PZC21-002, A ZONE CHANGE TO MODIFY THE ZONING MAP

TO ESTABLISH THE AH (AFFORDABLE HOUSING) ZOINING OVERLAY DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDCA21-001, A DEVELOPMENT CODE AMENDMENT REVISING SECTION 6.01.035, ADDING PROVISIONS TO ESTABLISH THE AH (AFFORDABLE HOUSING) OVERLAY DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6 ATTACHMENT: 20220301 File Nos PGPA21-004 PZC21-002 PDCA21-002 CC^04 RESOAddendum^RM ATTACHMENT: 20220301 File Nos PGPA21-004 PZC21-002 PDCA21-001 CC^05 RESO Addendum- ATTACH A
ATTACHMENT: 20220301 File Nos PGPA21-004 PZC21-002 PDCA21-002 CC^06 RESOGPA^RM ATTACHMENT: 20220301 File Nos PGPA21-004 PZC21-002 PDCA21-002 CC^07 RESOGPA- ATTACH ATTACHMENT: 20220301 Attachment H-File Nos PGPA21-004 PZC21-002 PDCA21-002 CC^08^ORD^PZC^RM
ATTACHMENT: 20220301 Attachment I -File Nos PGPA21-004 PZC21-002 PDCA21-002 CC^09 ORD-DCA^RM

12. A PUBLIC HEARING TO CONSIDER 1) CERTIFICATION OF THE ENVIRONMENTAL IMPACT REPORT (STATE CLEARINGHOUSE NO. 2021010318), INCLUDING THE ADOPTION OF A

MITIGATION MONITORING AND REPORTING PROGRAM AND A STATEMENT OF OVERRIDING CONSIDERATIONS; 2) A GENERAL PLAN AMENDMENT (FILE NO. PGPA19-004) TO MODIFY THE LAND USE PLAN (EXHIBIT LU-01) OF THE POLICY PLAN (GENERAL PLAN) OF THE ONTARIO PLAN TO CHANGE THE LAND USE DESIGNATIONS FOR 219.39 ACRES OF LAND FROM LOW-MEDIUM DENSITY RESIDENTIAL (5.1-11 DWELLING UNITS PER ACRE) AND BUSINESS PARK (0.6 FAR) TO BUSINESS PARK (0.6 FAR) AND INDUSTRIAL (0.55 FAR), AND MODIFY THE FUTURE BUILDOUT TABLE (EXHIBIT LU-03) TO BE CONSISTENT WITH THE LAND USE DESIGNATION CHANGES; AND 3) A SPECIFIC PLAN (FILE NO. PSP19-001 - SOUTH

ONTARIO LOGISTICS CENTER SPECIFIC PLAN) TO ESTABLISH THE LAND USE DISTRICTS,

DEVELOPMENT STANDARDS, DESIGN GUIDELINES, AND INFRASTRUCTURE IMPROVEMENTS FOR THE POTENTIAL DEVELOPMENT OF UP TO 5,333,518 SQUARE FEET OF INDUSTRIAL AND BUSINESS PARK LAND USES. THE PROJECT SITE IS BORDERED BY

EUCALYPTUS AVENUE ON THE NORTH, MERRILL AVENUE ON THE SOUTH, EXISTING

RIGHT-OF-WAY FOR THE FUTURE CAMPUS AVENUE EXTENSION ON THE WEST, AND GROVE AVENUE ON THE EAST (APNS: 1054-071-01, 1054-071-02, 1054-081-03, 1054-091-01, 1054- 091-02, 1054-101-01, 1054-101-02, 1054-231-01, 1054-231-02, 1054-241-01, 1054-241-02, 1054-321-01, 1054-321-02, 1054-311-01, 1054-311-02, 1054-051-01, 1054-051-02, 1054-061- 01, 1054-061-02, 1054-251-01, 1054-251-02, 1054-301-01, AND 1054-301-02.

That the City Council take the following actions:

A. Consider and adopt the Resolution certifying the Environmental Impact Report (State Clearinghouse No. 2021010318) prepared for the South Ontario Logistics Center Specific Plan, File No. PSP19-001, which includes the adoption of a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Plan; B. Consider and adopt the Resolution approving a General Plan Amendment (File No.

PGPA19-004) modifying the Land Use Element of the Policy Plan component of The Ontario Plan (General Plan), changing the land use designations shown on the Land Use Plan Map (Exhibit LU-1) for 39 acres of land, from Low-Medium Density Residential (5.1- 11 dwelling units per acre) and Business Park (0.6 FAR) to Business Park (0.6 FAR) and CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7 Industrial (0.55 FAR), and modify the Future Buildout Table (Exhibit LU-03) to be consistent with the land use designation changes; and
C. Introduce and waive further reading of the Ordinance adopting the South Ontario Logistics Center Specific Plan (File No. PSP19-001).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

ADOPTING ENVIRONMENTAL FINDINGS PURSUANT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT AND CERTIFYING THE SOUTH ONTARIO LOGISTICS

CENTER SPECIFIC PLAN FINAL ENVIRONMENTAL IMPACT REPORT (STATE CLEARINGHOUSE NO. 2021010318), ADOPTING FINDINGS OF OVERRIDING

CONSIDERATIONS AND A MITIGATION MONITORING AND REPORTING PROGRAM FOR FILE NO. PGPA19-004, A GENERAL PLAN AMENDMENT, AND FILE NO. PSP19- 001, THE SOUTH ONTARIO LOGISTICS CENTER SPECIFIC PLAN, LOCATED WITHIN

ONTARIO RANCH AND GENERALLY BORDERED BY EUCALYPTUS AVENUE TO THE

NORTH, GROVE AVENUE TO THE EAST, MERRILL AVENUE TO THE SOUTH, AND CAMPUS AVENUE TO THE WEST, AND MAKING FINDINGS IN SUPPORT THEREOF – APNS: 1054-071-01, 1054-071-02, 1054-081-03, 1054-091-01, 1054-091-02, 1054- 101-01, 1054-101-02, 1054-231-01, 1054-231-02, 1054-241-01, 1054-241-02, 1054- 321-01, 1054-321-02, 1054-311-01, 1054-311-02, 1054-051-01, 1054-051-02, 1054- 061-01, 1054-061-02, 1054-251-01, 1054-251-02, 1054-301-01, AND 1054-301-02.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PGPA19-004, AN AMENDMENT TO THE LAND USE ELEMENT OF THE POLICY PLAN (GENERAL PLAN), REVISING EXHIBIT LU-01 (OFFICIAL LAND USE PLAN) AND EXHIBIT LU-03 (FUTURE BUILDOUT), AFFECTING PROPERTY

BORDERED BY EUCALYPTUS AVENUE TO THE NORTH, MERRILL AVENUE TO THE

SOUTH, CAMPUS AVENUE TO THE WEST, AND GROVE AVENUE TO THE EAST, FROM APPROXIMATELY 157.1 ACRES OF LOW-MEDIUM DENSITY RESIDENTIAL (5.1-11 DWELLING UNITS PER ACRE) AND APPROXIMATELY 62.4 ACRES OF BUSINESS PARK (0.6 FAR) TO APPROXIMATELY 184.2 ACRES OF INDUSTRIAL (0.55 FAR) AND APPROXIMATELY 35.2 ACRES OF BUSINESS PARK (0.6 FAR), AND MAKING FINDINGS IN SUPPORT THEREOF—APNS: 1054-071-01, 1054-071-02, 1054-081-03, 1054-091- 01, 1054-091-02, 1054-101-01, 1054-101-02, 1054-231-01, 1054-231-02, 1054-241- 01, 1054-241-02, 1054-321-01, 1054-321-02, 1054-311-01, 1054-311-02, 1054-051- 01, 1054-051-02, 1054-061-01, 1054-061-02, 1054-251-01, 1054-251-02, 1054-301- 01, AND 1054-301-02. (SEE ATTACHMENTS 1 AND 2) (PART OF THE GENERAL PLAN AMENDMENT CYCLE ONE FOR THE 2022 CALENDAR YEAR.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSP19-001, THE SOUTH ONTARIO LOGISTICS CENTER

SPECIFIC PLAN, TO ESTABLISH LAND USE DISTRICTS, DEVELOPMENT STANDARDS,

DESIGN GUIDELINES, AND INFRASTRUCTURE IMPROVEMENTS FOR THE POTENTIAL DEVELOPMENT OF UP TO 5,333,518 SQUARE FEET OF INDUSTRIAL AND BUSINESS PARK LAND USES ON 219.39 ACRES OF LAND GENERALLY BORDERED BY

EUCALYPTUS AVENUE ON THE NORTH, MERRILL AVENUE ON THE SOUTH, GROVE

AVENUE ON THE EAST, AND CAMPUS AVENUE ON THE WEST, AND MAKING CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8 ATTACHMENT: 20220301 File No. PGPA19-004 PSP19-001 SOLC SP^01 EXH A - E ATTACHMENT: 20220301 File No PGPA19-004 PSP19-001 SOLC SP^02 Exhibit F Public Comments_Redacted.pdf
ATTACHMENT: 20220301 File PGPA19-004_PSP19-001 ^03 PC Backup ATTACHMENT: 20220301 File No PGPA19-004 PSP19-001 SOLC SP^04 EIR RESO^RM ATTACHMENT: 20220301 File No. PGPA19-004 PSP19-001 SOLC SP^05 RES-EIR ATTACH A (FEIR w MMRP)
ATTACHMENT: 20220301 File No. PGPA19-004_PSP19-001 SOLC SP^06 RESO-GPA^RM ATTACHMENT: 20220301 File No. PGPA19-004 PSP19-001 SOLC SP^07 ORD-SP^RM ATTACHMENT: 20220301 File No. PGPA19-004 PSP19-001 SOLC SP^08 ORD-SP ATTACH A (SP Doc)
FINDINGS IN SUPPORT THEREOF—APNS: 1054-071-01, 1054-071-02, 1054-081-03, 1054-091-01, 1054-091-02, 1054-101-01, 1054-101-02, 1054-231-01, 1054-231-02, 1054-241-01, 1054-241-02, 1054-321-01, 1054-321-02, 1054-311-01, 1054-311-02, 1054-051-01, 1054-051-02, 1054-061-01, 1054-061-02, 1054-251-01, 1054-251-02, 1054-301-01, AND 1054-301-02.

STAFF MATTERS
City Manager Ochoa

COUNCIL MATTERS
Mayor Leon
Mayor pro Tem Wapner
Council Member Bowman
Council Member Dorst-Porada
Council Member Valencia

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9

Page 1 of 1 ends

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) March 1, 2022
ROLL CALL: Wapner _, Bowman _, Dorst-Porada _, Valencia _, Mayor / Chairman Leon _.

STAFF: City Manager / Executive Director __, City Attorney __ In attendance: Wapner _, Bowman _, Dorst-Porada _,Valencia _, Mayor / Chairman Leon _.  GC 54956.8, CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN: 1048-562-01; 215 West C Street; City/Authority negotiator: Scott Ochoa or his designee; Negotiating parties: United Christian Church of Hacienda Heights; Under negotiation: Price and terms of payment.

No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ Reported by:
___________________________________________
City Attorney / City Manager / Executive Director
10 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
FEBRUARY 1, 2022
(Not Official Until Approved)

JOINT MEETINGS
Pursuant to AB 361, the regular meetings of the Ontario City Council and Housing Authority were held on Tuesday February 1, 2022 on OntarioTV at www.ontarioca.gov/Agendas/CityCouncil.

CALL TO ORDER
Mayor Leon called the Joint City Council and Ontario Housing Authority meetings to order at 6:02 p.m.

ROLL CALL
PRESENT: Mayor/Chairman Paul S. Leon
Mayor pro Tem/Vice Chair Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Dorst-Porada and Ruben Valencia
ABSENT: Council/Authority Members: None.

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk/Secretary Sheila Mautz, all participating virtually.

CLOSED SESSION PUBLIC COMMENT
Mayor Leon inquired whether persons were present who wished to speak to the Closed Session item. Hearing no one, City Attorney Duran announced the matters for discussion, as listed on the agenda, and the City Council recessed to Closed Session at 6:04 p.m. for discussion of the following:

CLOSED SESSION
• GC 54957.6, LABOR NEGOTIATIONS: City Negotiator: City Manager or his designee; Bargaining Units: Ontario Police Officers Association CALL TO ORDER – OPEN SESSION
Mayor Leon called the City Council and Ontario Housing Authority meetings to order at 6:31p.m.
11 Ontario City Council/Ontario Housing
Regular Meeting Minutes – February 1, 2022

Page 2 of 6 ends

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Dorst-Porada.

INVOCATION
In lieu of the invocation, Mayor Leon led a moment of silence.

REPORT ON CLOSED SESSION
City Attorney Duran announced there was no reportable action.

PUBLIC COMMENTS
Assistant City Clerk announced there were no emailed public comments.

Mayor Leon called upon the first caller:

Elizabeth Skrzat, General Manager with the Chino Basin Water Conservation District, invited City Council to upcoming events.

Giovanni Sanchez, inquired on the status of the Jesus Sanchez case.

Alexis Sanchez, inquired on the status of the Jesus Sanchez case.

Maria Romualdo, requested a letter be sent to Governor Newsom requesting assistance in solving the Jesus Sanchez case.

Cassandra Sanchez, inquired on the status of the Jesus Sanchez case.

Damaris Lopez, inquired on the status of the Jesus Sanchez case and requested more resources to support the Ontario Police Department in solving the pending case.

AGENDA REVIEW/ANNOUNCEMENTS
City Manager Ochoa made no announcements regarding the agenda. He noted he would have the Ontario Police Department continue to stay in contact with the Sanchez family.

CONSENT CALENDAR
Items pulled from Consent: Mayor pro Tem Wapner pulled Item No. 13 from the Consent Calendar for discussion.

MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried by unanimous roll call vote 5-0, to approve the Consent Calendar as presented, with the exception of Item No. 13.
12 Ontario City Council/Ontario Housing
Regular Meeting Minutes – February 1, 2022

Page 3 of 6 ends

1. APPROVAL OF MINUTES
The City Council approved minutes for the regular meetings of the City Council and Housing Authority of January 4, 2022, approving the same as on file in the Records Management Department.

2. BILLS & PAYROLL
Approved Bills from December 4, 2021 through January 13, 2022 in the amount of $17,290,245.61 and Payroll December 19, 2021 through January 1, 2022 in the amount of $3,849,012.73, when audited by the Finance Committee.

3. PURCHASE OF PORTABLE MASS SPECTROMETER
The City Council authorized the City Manager to execute the sole source purchase of portable mass spectrometer from 908 Devices Inc., of Boston, MA, in the amount of $103,247.

4. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR

HAZARDOUS MATERIALS COLLECTION AND DISPOSAL
The City Council approved Amendment No. 2 to increase the contracted dollar amount with Environmental Logistics, Inc. of Bloomington, California by $159,450, which would increase the total not to exceed amount to $326,898.

5. AUTHORIZE ADDITIONAL PRINTING SERVICES AND POSTAGE FOR

CITYWIDE EDUCATIONAL EFFORTS
The City Council authorized an increase to postage budget and duplicating expenses for expanded community outreach efforts to residents and businesses in the amount of $250,000.

6. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING A ZONE CHANGE (FILE NO. PZC21-001) AMENDING THE ZONING DESIGNATION ON 2.77 ACRES OF LAND FROM IL (LIGHT INDUSTRIAL) TO IG (GENERAL INDUSTRIAL), LOCATED AT 1948 SOUTH BON VIEW AVENUE; APN:1050-441-05.

The City Council considered and adopted an ordinance approving a Zone Change (File No. PZC21-001) amending the zoning designation on 2.77 acres of land located at 1948 South Bon View Avenue, from IL (Light Industrial) to IG (General Industrial).

Introduction and first reading took place at a regular meeting on January 18, 2022.

ORDINANCE NO. 3203 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PZC21-001, A ZONE 13 Ontario City Council/Ontario Housing
Regular Meeting Minutes – February 1, 2022

Page 4 of 6 ends

CHANGE ON 2.77 ACRES OF LAND FROM IL (LIGHT INDUSTRIAL) TO IG (GENERAL INDUSTRIAL), LOCATED AT 1948 SOUTH BON VIEW AVENUE, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 1050-441-05.

7. A COST SHARING AGREEMENT WITH CHAFFEY JOINT UNION HIGH SCHOOL

DISTRICT FOR SCHOOL RESOURCE OFFICERS
The City Council approved and authorized the City Manager to execute a one-year cost sharing agreement with the Chaffey Joint Union High School District for three school resource officers in the amount of $244,000.

8. AMENDMENT TO PUBLIC WORKS CONTRACT FOR CONCRETE REPAIR AND

MAINTENANCE AND INSTALLATION OR RECONTRUCTION OF WHEELCHAIR

RAMPS SERVICES
The City Council authorized the City Manager to execute Amendment (Change Order) No. 12 in the amount of $159,136 to the existing Public Works Contract for Concrete Repair and Maintenance and Installation or Reconstruction of Wheelchair Ramps Services with CT&T Concrete Paving, Inc. of Diamond Bar, California, for Fiscal Year 2021-22.

9. DESIGN SERVICE AGREEMENT FOR CITYWIDE ON-CALL ARCHITECTURAL

SERVICES
The City Council authorized the City Manager to add a contract threshold amount not to exceed $400,000 for On-Call Design Service Agreement with Robert Borders & Associates of Costa Mesa, California.

10. AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH WEST COAST ARBORIST, INC. FOR TREE MAINTENANCE SERVICES
The City Council authorized the City Manager to execute Amendment No. 11 in the amount of $573,385 to the existing Public Works Contract to perform tree maintenance services with West Coast Arborist, Inc. of Anaheim, California for Fiscal Year 2021-22.

11. AGREEMENT TO PROVIDE FIRE DISPATCH SERVICES TO THE CITY OF CORONA
The City Council authorized the City Manager to execute an agreement with the City of Corona for the Ontario Fire Department to provide fire dispatch services and recover associated costs and fees from the City of Corona. 14 Ontario City Council/Ontario Housing
Regular Meeting Minutes – February 1, 2022

Page 5 of 6 ends

12. PURCHASE OF REPLACEMENT CARDIAC MONITORS
Authorized the cooperative purchase and delivery of cardiac monitors in the amount of $942,000 from Zoll Medical Corporation of Chelmsford, Massachusetts, consistent with the terms and conditions of NPPGov Contract No. PS20200.

14. DECLARATION OF MANDATORY WATER RESTRICTIONS - STAGE 2 The City Council implemented Stage 2 of the City’s Municipal Code Water Conservation Plan.

ITEMS PULLED FOR DISCUSSION:

13. APPROVAL OF TWO-YEAR MEMORANDUM OF UNDERSTANDING(S)

ESTABLISHING COMPENSATION AND RELATED BENEFITS FOR SPECIFIED

REPRESENTED EMPLOYEE GROUPS INCLUDING AMENDMENTS TO THE

COMPENSATION AND BENEFITS PROFILE FOR UNREPRESENTED
EMPLOYEES; APPROVAL OF ONE YEAR EXTENSION FOR SPECIFIED PUBLIC SAFETY GROUPS; AND AUTHORIZE THE CITY MANAGER TO MAKE

ANY NON-SUBSTNATIVE CHANGES WHICH MAY BE NECESSARY TO
IMPLEMENTAITON.

The City Council approved two-year Memorandum of Understanding(s) regarding wages, hours, and other terms and conditions of employment between the City of Ontario and the American Federation of State, County, & Municipal Employees Local 3061 and the Association of Ontario Management Employees from July 1, 2021 through June 30, 2023; approve amendments to the Compensation and Benefits Profiles for Department Heads and Confidential/Specialized Confidential Employees effective July 1, 2021; and contingent upon ratification from specified groups, approve a one-year extension to the Memorandum of Understanding(s) regarding wages, hours, and other terms and conditions of employment between the City of Ontario and the Ontario Professional Firefighters Association and the Ontario Fire Management Group pursuant to actions of these two groups to be taken the morning of February 1, 2022.

Mayor pro Tem Wapner expressed his gratitude for the groups coming to a consensus so quickly.

Council Member Dorst-Porada also thanked the groups for coming to a consensus.

MOTION: Moved by Council Member Bowman, seconded by Council Member Dorst-Porada and carried by unanimous roll call vote 5-0, to approve a Two-Year Memorandum of Understanding(s) Establishing Compensation and Related Benefits.

STAFF MATTERS
15 Ontario City Council/Ontario Housing
Regular Meeting Minutes – February 1, 2022

Page 6 of 6 ends

City Manager Ochoa made no comments.

COUNCIL MATTERS
Council Member Dorst-Porada spoke on the upcoming windstorm and encouraged residents to stay safe.

Council Member Bowman made no comments.

Council Member Valencia spoke on the upcoming windstorm and encouraged residents to call 911 if they see any fallen electrical lines.

Mayor pro Tem Wapner made no comments.

Mayor Leon encouraged residents to stay safe during the windstorm.

ADJOURNMENT
Mayor Leon adjourned the meetings of the Joint Agencies at 6:57 p.m. and announced the next regular meeting to be held on Tuesday, February 15, 2022.

Respectfully submitted,
_______________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY
APPROVED:
________________________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
16 Department: Police Department
Prepared By: Nicole Alvarez
Staff Member Presenting:

Mike Lorenz, Chief of Police
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 3
SUBJECT: APPLICATION FOR CALIFORNIA OFFICE OF TRAFFIC SAFETY (OTS) FY22/23

SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (STEP) GRANT

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That City Council authorize the City Manager or his designee to execute all documents necessary to apply for and accept a 12-month grant in the amount of $822,400 from the California Office of Traffic Safety (OTS) for participation in the FY22/23 Selective Traffic Enforcement Program (STEP) Grant.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT: Grant awards will be announced in July 2022 and the funds will be used for eligible costs incurred from October 1, 2022–September 30, 2023. These grants are reimbursable on a quarterly basis and fund police overtime, education, equipment, supplies, and training to conduct DUI saturation patrols, special traffic enforcement, field enforcement, street racing enforcement and training, education and sobriety checkpoints. The approximate grant funding reimbursement requested is $822,400, and the City is not required to provide matching funds for the grants. If awarded, the approved amount will be included as in a subsequent quarterly budget report to City Council.

BACKGROUND & ANALYSIS: The California Office of Traffic Safety (OTS), through the National Highway Traffic Safety Administration (NHTSA), offers local law enforcement agencies overtime grants to mitigate traffic safety program deficiencies, expand ongoing activities, develop new programs, and conduct sobriety checkpoints. The grant period includes two “National Impaired Driving Campaign” mobilization periods: the Winter Mobilization which occurs around Christmas and New Year’s Eve and Summer Mobilization which occurs around Labor Day. Sobriety checkpoints, DUI saturation patrols and special traffic enforcement will be scheduled during each of the highly publicized mobilization periods. Additional operations will continue to be conducted outside the mobilization periods. Each overtime operation and checkpoint will be conducted according to each operation’s specific needs, which may require supervisors, officers, technicians, and/or clerical/other staff members. The goal of the OTS grant program includes: (1) reducing the number of people killed in alcohol-involved crashes through the combined efforts of local law 17 enforcement agencies, California Highway Patrol, and OTS, (2) reduce the total number of traffic collisions that occur within the City, (3) through press releases, inform citizens of increased enforcement and educate drivers that the only way to “avoid” arrest, injury, and/or death is to drive sober, and (4) network with regional law enforcement agencies to conduct multiple joint operations to decrease alcohol related issues such as DUI’s and underage drinking. 18 Department: Police Department
Prepared By: Nicole Alvarez
Staff Member Presenting:

Mike Lorenz, Chief of Police
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 4
SUBJECT: APPLICATION FOR THE CALIFORNIA OFFICE OF TRAFFIC SAFETY (OTS) FY22/23

RIDE- TO-LIVE MOTORCYCLE TRAINING COURSE GRANT

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That City Council authorize the City Manager or his designee to execute all documents necessary to apply for and accept a 12-month grant in the amount of $29,000 from the California Office of Traffic Safety (OTS) for participation in the FY22/23 Ride-to Live Motorcycle Safety Training Course Grant.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT: Grant awards will be announced in July 2022 and the funds will be used for eligible costs incurred from October 1, 2022 – September 30, 2023. These grants are reimbursable on a quarterly basis and fund police overtime, education, equipment, supplies, and training to conduct Motorcycle Safety Training courses. The approximate grant funding reimbursement requested is $29,000. The City is not required to provide matching funds for the grant. If awarded, the approved amount will be included in a subsequent quarterly budget report to City Council.

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 5
SUBJECT: AUTHORIZE THE PURCHASE OF FLEET VEHICLES

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize the cooperative purchase and delivery of three (3) Autocar Automated Sideload trucks in the amount of $1,125,000 and two (2) Autocar Roll Off trucks in the amount of $570,000 for the Integrated Waste Department, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 060920-ATC.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The total cost of the vehicles recommended for purchase is $1,695,000. If approved, appropriations for the purchase of vehicles of $1,320,000 in the Integrated Waste Fund and $375,000 in the Integrated Waste Impact DIF Fund will be included in the Fiscal Year 2021-22 Year-End Budget Update.

BACKGROUND & ANALYSIS: With continuous residential and commercial development throughout the city and CalRecycle legislative requirements, the Integrated Waste Department is proactively planning for an increase in refuse, recycling, and organics materials. To maintain an effective level of customer service, the proposed purchase of equipment ensures minimal service interruptions to the customers of Ontario and compliance with CalRecycle’s legislative bills AB 341, SB 1383, and AB 1826.

QUANTITY TYPE DEPARTMENT PRICE
3 Automated Side Loader Integrated Waste $1,125,000
2 Autocar Roll Off Integrated Waste $570,000

TOTAL TOTAL
5 $1,695,000
20 Department: Parks & Maintenance
Prepared By: Alfredo Banuelos
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 6
SUBJECT: PURCHASE OF CALSENSE IRRIGATION CONTROLLERS

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize the City Manager, or his designee, to execute the Goods and Services Agreement with SiteOne Landscape Supply of Cleveland, Ohio (on file in the Records Management Department) for the procurement of new Calsense Irrigation Controllers for citywide parks and medians in an amount not to exceed $296,817.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: The Fiscal Year 2021-22 Adopted Budget includes appropriations of $280,950 in Capital Projects Fund and $15,867 in General Fund for the purchase of Calsense irrigation controllers in the total amount of $296,817.

BACKGROUND & ANALYSIS: The Calsense irrigation controllers model 2000E went out of production at the end of 2021 and parts will no longer be produced. Replacement of the Calsense model 2000E with the 3000E model will give Staff better connectivity and maximize water management savings. It will also allow Staff the ability to access the central command center through their smart phones/tablets and desktop computers.

On December 15, 2021, the City solicited request for proposals (RFPs) for the purchase of Calsense irrigation controllers and received three (3) bids from the following companies:

COMPANY LOCATION BID AMOUNT
SiteOne Landscape Supply Cleveland, Ohio $296,816.35
Smith Pipe & Supply Ontario, CA $311,526.30
Technology International, Inc. Lake Mary, Florida $321,553.14 SiteOne Landscape Supply is being recommended based on their bid amount and the ability to deliver the materials in a timely manner.
21 Department: Engineering
Prepared By: Antonio Alejos
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Reviewed By: Raymond Lee, Khoi Do
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 7
SUBJECT: A RESOLUTION APPROVING AN IMPROVEMENT AGREEMENT AND IMPROVEMENT SECURITY FOR DEVELOPMENT PLAN NO. PDEV19-027 LOCATED

AT THE SOUTHWEST CORNER OF SAN ANTONIO AVENUE AND STATE STREET

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt a Resolution approving an Improvement Agreement and Improvement Security for Development Plan No. PDEV19-027 located at the southwest corner of San Antonio Avenue and State Street.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: There is not a direct fiscal impact associated with this action. All public infrastructure improvements required for this development plan will be constructed by the Developer at its sole cost.

BACKGROUND & ANALYSIS: Development Plan No. PDEV19-027 ("Project"), consisting of a 104,078 square foot industrial building on approximately 5 acres of land, as shown on Exhibit A, has been submitted by the Developer, BC State Street, LLC, a Delaware Limited Liability Company. The Project was approved by the Development Advisory Board on November 18, 2019.

Improvements will include AC pavement, curb, gutter, sidewalk, landscaped parkways, fiber optic conduits, fire hydrants, sewer, water, storm drain, and streetlights. Improvements in the parkway will be consistent with current City approved drought measures.

The Developer has entered into an Improvement Agreement with the City for the Project and has posted adequate security to ensure construction of the required public improvements.

This development plan meets all conditions of the Ontario Municipal Code and has been reviewed 22 and approved by the City Engineer.
23 SAN ANTONIO AVENUE

CYPRESS AVENUE

STATE STREET

PARK STREET

PARCEL A
I-10 FREEWAY

FOURTH ST
W D
W G
E D
E G

W FOURTH

W MISSION

N EUCLID

E FOURTH

E MISSION
N BENS
ON
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SULTA
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A
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N GROVE
S EU

CL DI E HOLT

VICINITY MAP

NOT TO SCALE

EXHIBIT A

INDUSTRIAL

DEVELOPMENT PLAN
PROJECT SITE ¹
DATE: 2/4/2022

MAP NOT TO SCALE
PDEV19-027

EXHIBIT A
24 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, APPROVING AN IMPROVEMENT AGREEMENT AND
IMPROVEMENT SECURITY FOR DEVELOPMENT PLAN NO. PDEV19-
027 LOCATED AT THE SOUTHWEST CORNER OF SAN ANTONIO
AVENUE AND STATE STREET.

WHEREAS, Development Plan No. PDEV19-027 submitted for approval by BC State Street, L.L.C., was approved by the Development Advisory Board of the City of Ontario on November 18, 2019; and
WHEREAS, Development Plan No. PDEV19-027 a 104,078-square foot industrial building on 5.35 acres of land being Parcel “A” as described in the Certificate Compliance for Lot Line Adjustment No. LLA19-017 in the City of Ontario, County of San Bernardino, State of California per document recorded June 22, 2021 as Instrument No. 2021-0282497, both recorded in the County of San Bernardino, State of California; and WHEREAS, to meet the requirements established as prerequisite to final approval of Development Plan No. PDEV19-027, BC State Street, L.L.C., a Delaware limited liability company has offered the Improvement Agreement together with good and sufficient improvement security, in conformance with the City Attorney’s approved format, for approval and execution by the City; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ontario, California, as follows:

1. That said Improvement Agreement be, and the same is, approved and the City Manager is authorized to execute same on behalf of said City, and the City Clerk is authorized to attest thereto; and

2. That said Improvement Security is accepted as good and sufficient, subject to approval as to form and content thereof by the City Attorney; and The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 1st day of March 2022. _____________________________________
PAUL S. LEON, MAYOR
25 ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
26 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2022- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held March 1, 2022 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2022- duly passed and adopted by the Ontario City Council at their regular meeting held March 1, 2022. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
27 Department: Fire Department
Prepared By: Belinda Ramirez
Staff Member Presenting:

Ray Gayk, Fire Chief
Reviewed By: Jordan T Villwock
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 8
SUBJECT: A RESOLUTION APPROVING ADDITIONAL FIRE DEPARTMENT CLASSIFICATIONS

BE ADDED TO THE TERMS AND CONDITIONS FOR ONTARIO FIRE DEPARTMENT

RESPONSES TO AND REIMBURSEMENTS FOR CALIFORNIA FIRE AND RESCUE

MUTUAL AID SYSTEM REQUESTS

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt a Resolution approving additional fire department classifications to the terms and conditions for Fire Department responses to California Fire and Rescue Mutual Aid System requests to assist State of California and Federal Fire Agencies.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT: Approval of the proposed Resolution will ensure that the Ontario Fire Department recovers the maximum amount of reimbursable costs for certain mutual aid assignments. Absent this document, the City would be limited in the number of hours deemed reimbursable.

BACKGROUND & ANALYSIS: The intent of the California Fire Assistance Agreement (CFAA) is to compensate California Fire and Rescue Mutual Aid System Agencies for the cost of assisting the State of California and Federal Agencies. In 2015, it was established that, to be reimbursed from time of initial dispatch from their home base, to the time of return to home base (portal-to-portal), a MOU/MOA, governing body resolution or equivalent document must be on file with the Office of Emergency Services (Cal OES). Without this Agreement, reimbursement would be for actual hours worked while on the incident. In 2015, City Council approved Resolution R2015-039, which specified the positions of Fire Chief, Senior Deputy Fire Chief, Deputy Fire Chief, Battalion Chief, Fire Captain, Fire Engineer, Firefighter, and Nurse Administrator as eligible classifications to respond to these out-of-jurisdiction incidents. The Fire Department is requesting to add the following classifications to be eligible for portal-to portal reimbursement and to respond to out-of-jurisdiction incidents as Radio Operators: Fire Administrative Director, Emergency Manager, Fire Communications Manager, Fire Dispatch Supervisor, Senior Fire Dispatcher and Fire Dispatcher. 28 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, APPROVING THE TERMS AND CONDITIONS FOR

FIRE DEPARTMENT RESPONSE AWAY FROM THEIR OFFICIAL
DUTY STATION AND ASSIGNED TO AN EMERGENCY INCIDENT.

WHEREAS the City of Ontario (Fire Department) is a public agency located in the County of San Bernardino, State of California; and
WHEREAS, it is the intent of the City of Ontario's desire to provide for fair and legal payment to all its employees for time worked; and WHEREAS, the City of Ontario has in its employ, Fire Department response personnel including: Fire Administrative Director, Emergency Manager, Fire Communications Manager, Fire Dispatch Supervisor, Senior Fire Dispatcher, and Fire Dispatcher; and
WHEREAS, the City of Ontario will compensate its employees portal-to-portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or prepositioned for emergency response; and WHEREAS, the City of Ontario will compensate its employees' overtime, in accordance with their current Memorandum of Understanding (MOU), Personnel Rules and Regulations, and/or other directive, while in the course of their employment and away from their official duty station and assigned to an emergency incident, in supportof an emergency incident, or pre-positioned for emergency response.

NOW, THEREFORE, BE IT HEREBY RESOLVED, that the conditions set forth inthis resolution, as stated above, take effect upon adoption by the City of Ontario City Council.

NOW, THEREFORE, BE IT HEREBY RESOLVED, by the Ontario City Council that:

1. Personnel shall be compensated according to the MOU, Personnel Rules and Regulations, and/or other policy directive that identifies personnel compensation in the workplace.

2. For clarification, in the event where the MOU, Personnel Rules and Regulations, and/or other directive does not specify, personnel will be compensated (portal-to-portal) beginning at the time of dispatch to the return to jurisdiction when equipment and personnel are in service and available for agency response. 29 3. In the event a personnel classification does not have an assigned compensation rate, a "Base Rate" as set forth in an organizational policy, administrative directive, or similar document will be used to compensate such personnel.

4. The City of Ontario Fire Department will maintain a current salary survey or acknowledgement of acceptance of the "Base Rate" on file with the California Governor's Office of Emergency Services, Fire Rescue Division.

5. City of Ontario Fire Department response personnel include: Fire Administrative Director, Emergency Manager, Fire Communications Manager, Fire Dispatch Supervisor, Senior Fire Dispatcher, and Fire Dispatcher.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 1st day of March 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
30 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
31 Department: Integrated Waste
Prepared By: Benjamin Mayorga
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 9
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

AUTHORIZING THE SUBMITTAL OF A NOTIFICATION OF INTENT TO COMPLY WITH SB 1383 REGULATIONS FOR CALRECYCLE APPROVAL

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt a Resolution authorizing the City Manager, or designee, to execute the Department of Resources Recycling and Recovery (CalRecycle) Notification of Intent to Comply with SB 1383 Regulations related documents, in a form approved by the City Attorney.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The adoption of the Resolution will assist the City in avoiding administrative civil penalties pursuant to Public Resources Code 145652.5 (a)(1) and (5). There is no fiscal impact associated with adopting the proposed Resolution.

BACKGROUND & ANALYSIS: Pursuant to Public Resources Code sections 145652.5 (a)(1) and (5) Cal Recycle is authorized to administer civil penalties for non-compliance with SB 1383. Due to the COVID-19 pandemic, CalRecycle adopted SB 619 to assist jurisdictions with the implementation of newly enacted regulations in order to avoid potential violations and administrative penalties.

Adoption of the proposed Resolution allows the City of Ontario to secure administrative civil penalty relief for non-compliance with SB 1383.
32 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ADOPTING A NOTIFICATION OF INTENT TO COMPLY WITH THE SB 1383 REGULATIONS.

WHEREAS, the California Department of Resources Recycling and Recovery (“CalRecycle”) adopted regulations to implement Senate Bill 1383 (Lara, Statutes of 2016) (“SB 1383 Regulations”), to achieve organic waste reduction goals established in Health and Safety Code Section 39730.6 through a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2025; and
WHEREAS, the City of Ontario (“City”) is a local jurisdiction required to comply with the SB 1383 Regulations; and
WHEREAS, the City is or expects to be facing continuing violations of the SB 1383 Regulations during the 2022 calendar year; and
WHEREAS, Senate Bill 619 (Laird, Statutes of 2021) amended Public Resources Code Section 42652.5, created a mechanism called a Notification of Intent to Comply through which a local jurisdiction may secure administrative civil penalty relief from any continuing violations of the SB 1383 Regulations for the 2022 calendar year and may be eligible for a broader and longer-term regulatory compliance path, including suspended administrative civil penalties, through a corrective action plan; and WHEREAS, the City is a local jurisdiction authorized by SB 619 to submit a Notification of Intent to Comply for CalRecycle approval; and WHEREAS, CalRecycle shall approve a Notification of Intent to Comply that is duly adopted by the jurisdiction by formal written resolution and meets the requirements of SB 619.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ONTARIO AS FOLLOWS:

SECTION 1. The City Council hereby adopts the Notification of Intent to Comply attached as Exhibit “A,” and authorizes and directs the City Clerk to submit the Notification of Intent to Comply to CalRecycle for approval.

SECTION 2. By submitting the Notification of Intent to Comply pursuant to SB 619, the City represents and certifies that it will implement the proposed actions to remedy the violations according to the proposed schedule as approved by CalRecycle and in accordance with SB 619 and the SB 1383 Regulations. 33 SECTION 3. The City agrees to comply with any maximum compliance deadline in any corrective action plan that CalRecycle, in its sole discretion, determines to be necessary and appropriate under the circumstances for the correction of any violation(s) of the SB 1383 Regulations identified in its Notification of Intent to Comply.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 1st day of March 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
34 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
35 Exhibit “A” Notification of Intent to Comply
36 37
38 39
40 41
Department: Communications and Community
Relations
Prepared By: Tricia Almiron
Staff Member Presenting:

Dan Bell, Communications and Community
Relations Director
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 10
SUBJECT: STATE LEGISLATIVE UPDATE

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council receive and file this report on State Budget and proposed bills.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT: There is no direct fiscal impact associated with the receiving and filing of this item.

BACKGROUND & ANALYSIS: The State Legislature returned to Sacramento in early January and began working on budget and policy issues. California is projected to have a sizable surplus of $45.7 billion. Of this, approximately $20.6 billion is labeled “discretionary” and is not otherwise required to be allocated to schools, pay off debt, or boost reserve accounts. City staff and advocates are working with our local delegation to request funding specifically for the City of Ontario.

As part of Governor Newsom’s January Budget proposal, he requested the Legislature act on several high priority items early in the year, including current year COVID-19 funding and an extension of paid sick leave.

The Budget proposes investing in the transportation system and other related zero-emission vehicles efforts. These items are also included in the Governor’s Five-Year State Infrastructure Package which includes accelerated funding for climate resilience, broadband, housing, clean energy, wildfire protection, drought, and zero-emission vehicles.

The Legislature had until February 18, 2022, to introduce new bills. Attachment A contains a list of legislative bills the City is tracking. Staff will continue to provide updates and positions as policy committees progress.
42 City of Ontario Bills 2/24/22
AB 84 (Committee on Budget) Employment: COVID-19: supplemental paid sick leave.

Status: 2/9/2022-Re-referred to Com. on B. & F.R.

Location: 2/9/2022-S. BUDGET & F.R.

Summary: Would, beginning January 1, 2022, until September 30, 2022, provide for COVID-19 supplemental paid sick leave for covered employees who are unable to work or telework due to certain reasons related to COVID-19, including that the employee is attending a COVID-19 vaccine or vaccine booster appointment for themselves or a family member, or is experiencing symptoms, or caring for a family member experiencing symptoms, related to a COVID-19 vaccine or vaccine booster. The bill would entitle a covered employee to 40 hours of COVID-19 supplemental paid sick leave if that employee either works full time or was scheduled to work, on average, at least 40 hours per week for the employer in the 2 weeks preceding the date the covered employee took COVID-19 supplemental paid sick leave. The bill would provide a different calculation for supplemental paid sick leave for a covered employee who is a firefighter subject to certain work schedule requirements and for a covered employee working fewer or variable hours, as specified.

Position
High Watch
AB 399 (Salas D) Workers’ compensation.

Status: 1/27/2022-Read third time. Passed. Ordered to the Senate. In Senate. Read first time. To Com. on RLS. for assignment.

Location: 1/27/2022-S. RLS.

Summary: Would, if an employer objects to an injured employee’s physician selection because they are outside of the medical provider network, authorize the injured employee to request the medical provider network name and identification number. The bill would require the employer to provide the medical provider network name and identification number to the injured employee within 5 business days of the employee’s request.

Position
High Watch
AB 682 (Bloom D) Planning and zoning: density bonuses: cohousing buildings.

Status: 1/27/2022-Read third time. Passed. Ordered to the Senate. In Senate. Read first time. To Com. on RLS. for assignment.

Location: 1/27/2022-S. RLS.

Summary: Current law, commonly referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housing development within the city or county with a density bonus and other incentives or concessions, as specified, if the developer agrees to construct, among other options, specified percentages of units for moderate-income, lower income, or very low income households and meets other requirements. This bill would additionally require that a density bonus be provided under these provisions to a developer who agrees to construct a housing development that is a cohousing building, as defined, that meets specified requirements and will contain either 10% of the total square footage for lower income households, as defined, or 5% of the total square footage for very low income households, as defined.

Position
High Watch
AB 916 (Salas D) Zoning: accessory dwelling units: bedroom addition.

Status: 1/27/2022-Read third time. Passed. Ordered to the Senate. In Senate. Read first time. To Com. on RLS. for assignment.

Location: 1/27/2022-S. RLS.

Summary: The Planning and Zoning Law authorizes the legislative body of any county or city to adopt ordinances that regulate the use of buildings, structures, and land as between industry, business, residences, open space, and other purposes.This bill would prohibit a city or county legislative body from adopting or enforcing an ordinance requiring a public hearing as a condition of adding space for additional bedrooms or reconfiguring existing space to increase the bedroom count within an existing house, condominium, apartment, or dwelling. The bill would include findings that ensuring adequate housing is a matter of statewide concern and is not a municipal affair, and that the provision applies to all cities, including charter cities. This bill contains other related provisions and other existing laws.
43 Position
High Watch
AB 937 (Carrillo D) Immigration enforcement.

Status: 9/10/2021-Failed Deadline pursuant to Rule 61(a)(15). (Last location was INACTIVE FILE on 9/10/2021)(May be acted upon Jan 2022)
Location: 9/10/2021-S. 2 YEAR
Summary: The California Values Act, prohibits a California law enforcement agency from providing a person’s release date, or responding to a request for notification of a release date, unless that information is available to the public, and prohibits the transfer of an individual to immigration authorities, as specified, unless the person has been convicted of specified crimes or arrested for a serious or violent felony. This bill would prohibit any state or local agency from arresting or assisting with the arrest, confinement, detention, transfer, interrogation, or deportation of an individual for an immigration enforcement purpose, as specified. The bill would additionally prohibit state or local agencies or courts from using immigration status as a factor to deny or to recommend denial of probation or participation in any diversion, rehabilitation, mental health program, or placement in a credit-earning program or class, or to determine custodial classification level, to deny mandatory supervision, or to lengthen the portion of supervision served in custody.

Position
Oppose
AB 1014 (McCarty D) Cannabis: retailers: delivery: vehicles.

Status: 2/1/2022-In Senate. Read first time. To Com. on RLS. for assignment.

Location: 2/1/2022-S. RLS.

Summary: MAUCRSA establishes the Department of Cannabis Control for the administration and enforcement of its provisions. MAUCRSA requires the department to establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a unique identifier and is capable of providing specified information. MAUCRSA requires the track and trace program to include an electronic seed to sale software tracking system with data points for the different stages of commercial activity, including, but not limited to, cultivation, harvest, processing, manufacturing, distribution, inventory, and sale. This bill would also require the electronic seed to sale software tracking system to include delivery.

Position
High Watch
AB 1406 (Lackey R) Law enforcement agency policies: carrying of equipment.

Status: 2/1/2022-In Senate. Read first time. To Com. on RLS. for assignment.

Location: 2/1/2022-S. RLS.

Summary: Current law requires law enforcement agencies to maintain a policy on the use of force, as specified. Current law places certain restrictions on the use of force by law enforcement agencies, including prohibiting the use of a choke hold or carotid restraint. This bill would require a law enforcement agency that authorizes peace officers to carry an electroshock device, such as a taser or stun gun that is held and operated in a manner similar to a pistol, to require that device to be holstered or otherwise carried on the lateral side of the body opposite to the side that that officer’s primary firearm is holstered.

Position
High Watch
AB 1551 (Santiago D) Planning and zoning: development bonuses: mixed-use projects.

Status: 1/27/2022-Read third time. Passed. Ordered to the Senate. In Senate. Read first time. To Com. on RLS. for assignment.

Location: 1/27/2022-S. RLS.

Summary: The Density Bonus Law requires a city or county to provide a developer that proposes a housing development within the city or county with a density bonus and other incentives or concessions, as specified, if the developer agrees to construct specified percentages of units for lower income, very low income, or senior citizen housing, among other things, and meets other requirements. Previously existing law, until January 1, 2022, required a city, county, or city and county to grant a commercial developer a development bonus, as specified, when an applicant for approval of a commercial development had entered into an agreement for partnered housing with an affordable housing developer to contribute affordable housing through a joint project or 2 separate projects encompassing affordable housing. This bill would reenact the above-described provisions regarding the granting of development bonuses to certain projects. The bill would require 44 a city or county to annually submit to the Department of Housing and Community Development information describing an approved commercial development bonus. The bill would repeal these provisions on January 1, 2028.

Position
High Watch
AB 1597 (Waldron R) Shoplifting: increased penalties for prior crimes.

Status: 1/14/2022-Referred to Com. on PUB. S.

Location: 1/14/2022-A. PUB. S.

Summary: Current law, as amended by Proposition 47, provides that a registered sex offender or a person with a prior conviction for certain serious or violent felonies, such as a sexually violent offense, who commits petty theft, is subject to imprisonment in the county jail for up to one year or in the state prison for 16 months, or 2 or 3 years. This bill would reinstate a provision of law that was repealed by Proposition 47 that provides that a person who has been convicted 3 or more times of petty theft, grand theft, or other specified crimes and who is subsequently convicted of petty theft is subject to imprisonment in a county jail not exceeding one year or in a county jail for 18 months or 2 or 3 years.

Position
High Watch
AB 1599 (Kiley R) Proposition 47: repeal.

Status: 1/14/2022-Referred to Com. on PUB. S.

Location: 1/14/2022-A. PUB. S.

Summary: The Safe Neighborhoods and Schools Act, enacted as an initiative statute by Proposition 47, as approved by the electors at the November 4, 2014, statewide general election, made various changes relating to theft and the possession of controlled substances, including by, among other things, generally reducing the penalty for those crimes, including reducing the penalty for possession of concentrated cannabis, establishing a procedure by which individuals convicted of those crimes prior to the passage of the act may petition for resentencing under the act, and creating the crime of shoplifting. This bill would repeal the changes and additions made by Proposition 47, except those related to reducing the penalty for possession of concentrated cannabis.

Position
High Watch
AB 1603 (Salas D) Theft: shoplifting: amount.

Status: 1/14/2022-Referred to Com. on PUB. S.

Location: 1/14/2022-A. PUB. S.

Summary: Proposition 47 requires shoplifting, defined as entering a commercial establishment with the intent to commit larceny if the value of the property taken does not exceed $950, to be punished as a misdemeanor. Under current law, entering a commercial establishment with the intent to take property exceeding $950 is burglary, punishable as a misdemeanor or a felony. This bill would amend Proposition 47 by reducing the threshold amount for petty theft and shoplifting from $950 to $400. The bill would provide that it shall become effective only when submitted to, and approved by, the voters of California.

Position
High Watch
AB 1641 (Maienschein D) Sexually violent predators.

Status: 1/20/2022-Referred to Com. on PUB. S.

Location: 1/20/2022-A. PUB. S.

Summary: Current law provides for the civil commitment of a person who is determined to be a sexually violent predator. Current law requires the Secretary of the Department of Corrections and Rehabilitation to refer certain people for evaluation by the State Department of State Hospitals if the secretary determines that the person may be a sexually violent predator. Current law requires, if the State Department of State Hospitals determines that a person is a sexually violent predator, the Director of State Hospitals to forward a request to a specified county for a petition to be filed for the person to be committed to a facility for mental health treatment. Existing law requires a judge of the superior court to review the petition and to determine whether there is probable cause to believe that the individual is likely to engage in sexually violent predatory criminal behavior upon release. This bill would authorize the use of documentary evidence of the commission of another sexual offense or offenses and the details underlying the commission of another sexual offense at 45 the probable cause hearing and would prohibit that documentary evidence from being excluded on the basis that it is hearsay evidence.

Position
High Watch
AB 1648 (Maienschein D) Disaster preparedness: local government: animal wildfire evacuation plan.

Status: 1/20/2022-Referred to Com. on E.M.

Location: 1/20/2022-A. EMERGENCY MANAGEMENT
Summary: The Office of Emergency Services, in coordination with all interested state agencies with designated response roles in the state emergency plan and interested local emergency management agencies, is required to jointly establish by regulation a standardized emergency management system for use by all emergency response agencies. Current law requires the office to approve and adopt, and incorporate the California Animal Response Emergency System (CARES) program developed under the oversight of the Department of Food and Agriculture into the standardized emergency management system. This bill would require a city or county that requires a kennel license or permit to operate a kennel within its jurisdiction, to require, as a condition for obtaining the kennel license or permit, that the kennel owner create and submit to the city or county an animal natural disaster evacuation plan for any kennel covered by the license or permit.

Position
High Watch
AB 1650 (Cooper D) Sexually violent predators.

Status: 1/14/2022-From printer. May be heard in committee February 13.

Location: 1/13/2022-A. PRINT
Summary: Current law authorizes a person who has been committed as a sexually violent predator to petition the court for conditional release, as specified, and if the conditional release is granted, requires the person to be placed in the person’s county of domicile prior to the incarceration, except as specified. This bill would declare the intent of the Legislature to enact legislation relating to sexually violent predators.

Position
High Watch
AB 1653 (Patterson R) Property crimes: regional property crimes task force.

Status: 1/27/2022-Referred to Com. on PUB. S.

Location: 1/27/2022-A. PUB. S.

Summary: Current law, until January 1, 2026, requires the Department of the California Highway Patrol to coordinate with the Department of Justice to convene a regional property crimes task force to identify geographic areas experiencing increased levels of property crimes and assist local law enforcement with resources, such as personnel and equipment.This bill would specify theft of vehicle parts and accessories as a property crime for consideration by the regional property crimes task force.

Position
High Watch
AB 1674 (Voepel R) Building standards: photovoltaic requirements: accessory dwelling units.

Status: 1/27/2022-Referred to Coms. on H. & C.D. and NAT. RES.

Location: 1/27/2022-A. H. & C.D.

Summary: Would prohibit an accessory dwelling unit, as defined, from being considered to be a newly constructed building for purposes of a specified provision of the California Energy Code, which is part of the California Building Standards Code, regarding the photovoltaic requirements for newly constructed buildings that are low-rise residential buildings. The bill would require the State Energy Resources Conservation and Development Commission, commonly known as the Energy Commission, to study exempting accessory dwelling units from specified photovoltaic requirements and make recommendations to the California Building Standards Commission in time for consideration and adoption in the next regularly occurring California Building Standards Code adoption cycle.

Position
High Watch
AB 1685 (Bryan D) Vehicles: parking violations.
46 Status: 2/3/2022-Referred to Coms. on TRANS. and H. & C.D.

Location: 2/3/2022-A. TRANS.

Summary: Current law authorizes a parking citation processing agency, as defined, to collect an unpaid parking penalty by requesting the Department of Motor Vehicles to place a registration hold on the vehicle to which the citations have been issued, or by obtaining a civil judgment against the registered owner of the vehicle, as specified. Current law requires a processing agency to offer a payment plan for unpaid parking citations to qualified indigent persons. This bill would require a processing agency to forgive up to $1,500 in parking fines and fees for a qualified homeless person, as specified.

Position
High Watch
AB 1713 (Boerner Horvath D) Vehicles: required stops: bicycles.

Status: 2/3/2022-Referred to Com. on TRANS.

Location: 2/3/2022-A. TRANS.

Summary: Would, until January 1, 2026, require a person who is 18 years of age or older riding a bicycle, when approaching a stop sign at the entrance of an intersection, to yield the right-of-way to any vehicles that have either stopped at or entered the intersection, or that are approaching on the intersecting highway close enough to constitute an immediate hazard, and to pedestrians, as specified, and continue to yield the right-of-way to those vehicles and pedestrians until reasonably safe to proceed. The bill would require other vehicles to yield the right-of-way to a bicycle that, having yielded as prescribed, has entered the intersection. The bill would state that these provisions do not affect the liability of a driver of a motor vehicle as a result of the driver’s negligent or wrongful act or omission in the operation of a motor vehicle.

Position
High Watch
AB 1737 (Holden D) Children’s camps: local registration and inspections.

Status: 2/10/2022-Referred to Coms. on HEALTH and PUB. S.

Location: 2/10/2022-A. HEALTH
Summary: Current law requires the State Public Health Officer to establish rules and regulations establishing minimum standards for organized camps. Current law requires the State Fire Marshal to adopt minimum fire safety regulations for organized camps. Current law requires local health officers to enforce building standards relating to organized camps and the other rules and regulations adopted by the State Public Health Officer. Current law defines "organized camp," for these purposes. Current law requires the Director of Public Health to consider the Camp Standards of the American Camping Association when adopting rules and regulations pursuant to these provisions. This bill would make these provisions applicable to "children’s camps" instead of organized camps and would define "children’s camp" as a camp that offers daytime or overnight experiences administered by professional adults who provide social, cultural, educational, recreational, or artistic programming to more than 5 children between 3 and 17 years of age for 5 days or longer during at least one season, except as specified. The bill would make other conforming changes in this regard.

Position
High Watch
AB 1748 (Seyarto R) Exempt surplus land: regional housing need.

Status: 2/10/2022-Referred to Coms. on L. GOV. and H. & C.D.

Location: 2/10/2022-A. L. GOV.

Summary: Current law prescribes requirements for the disposal of surplus land by a local agency.

Current law defines "surplus land" for these purposed to mean land owned in fee simple by any local agency for which the local agency’s governing body takes formal action declaring that the land is surplus and is not necessary for the agency’s use. Current law provides that an agency is not required to follow the requirements for disposal of surplus land for "exempt surplus land," except as provided. Currentlaw categorizes as "exempt surplus land," surplus land that a local agency is transferring to another local, state, or federal agency for the agency’s use. This bill would add to the definition of "exempt surplus land," surplus land that is zoned for a density of up to 30 residential units and is owned by a city or county that demonstrates adequate progress in meeting its share of regional housing need in its annual report, as specified, has constructed an adequate number of housing units to meet its share of regional housing need in the immediately preceding or current housing element cycle, as specified, or is designated as prohousing by the department.

Position
47 High Watch
AB 1774 (Seyarto R) California Environmental Quality Act: water conveyance or storage projects:
judicial review.

Status: 2/10/2022-Referred to Coms. on NAT. RES. and JUD.

Location: 2/10/2022-A. NAT. RES.

Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that the lead agency proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA establishes a procedure by which a person may seek judicial review of the decision of the lead agency made pursuant to CEQA. This bill would require the Judicial Council to adopt rules of court applicable to actions or proceedings brought to attack, review, set aside, void, or annul the certification or adoption of an environmental impact report for water conveyance or storage projects, as defined, or the granting of project approvals, including any appeals to the court of appeal or the Supreme Court, to be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court to an action or proceeding seeking judicial review of the lead agency’s action related to those projects.

Position
High Watch
AB 1835 (Lackey R) Sexually violent predators: conditional release: placement location.

Status: 2/18/2022-Referred to Com. on PUB. S.

Location: 2/18/2022-A. PUB. S.

Summary: Current law provides for the civil commitment of a person who is determined to be a sexually violent predator. Current law establishes a procedure by which a person committed as a sexually violent predator may petition for conditional release and requires the court, if it makes a specified determination, to place the person on conditional release. Current law generally requires that a person released on conditional release pursuant to these provisions be placed in the county of domicile and requires the State Department of State Hospitals, or its designee, to consider specified factors when recommending a specific placement for community outpatient treatment, including the concerns and proximity of the victim or the victim’s next of kin and the age and profile of the victim or victims in the sexually violent offenses committed by the person subject to placement. This bill would also require, if reasonably possible, a person to be placed at a location within the person’s city of domicile, if any, or within a close geographic location within the county of domicile in which the person has family, social ties, or economic ties, and access to reentry services, unless placement within that city or location would pose a risk to the person’s victim or victim’s next of kin.

Position
High Watch
AB 1836 (Maienschein D) Peace officers: mental health.

Status: 2/8/2022-From printer. May be heard in committee March 10.

Location: 2/7/2022-A. PRINT
Summary: Current law establishes the Commission on Peace Officer Standards and Training. Under existing law, the commission administers the Innovations Grant Program for the purpose of fostering innovations in training and procedures for law enforcement officers. Current law requires the grant program to develop and provide wellness programs for law enforcement officers, among other things.This bill would state the intent of the Legislature to draft legislation to establish a grant program for the purpose of addressing officer wellness and mental health support.

Position
High Watch
AB 1850 (Ward D) Public housing: unrestricted housing.

Status: 2/18/2022-Referred to Com. on H. & C.D.

Location: 2/18/2022-A. H. & C.D.

Summary: Would prohibit a city, county, city and county, joint powers authority, or any other political subdivision of a state or local government from acquiring unrestricted housing, as defined, unless each unit in the development meets specified criteria, including that the initial rent for the 48 first 12 months postconversion is at least 10% less than the average monthly rent charged for the unit over the 12-month period prior to conversion and at least 20% less than the small area fair market rent.

Position
High Watch
AB 1883 (Quirk-Silva D) Public restrooms.

Status: 2/18/2022-Referred to Com. on L. GOV.

Location: 2/18/2022-A. L. GOV.

Summary: Current law requires every public agency, as defined, that conducts an establishment serving the public or open to the public and that maintains restroom facilities for the public, to make every water closet available without cost or charge, as provided. Current law also requires publicly and privately owned facilities where the public congregates to be equipped with sufficient temporary or permanent restrooms to meet the needs of the public at peak hours. This bill would require each local government, as defined, to complete an inventory of public restrooms owned and maintained by the local government, either directly or by contract, that are available to the general population in its jurisdiction.

Position
High Watch
AB 1886 (Cooper D) Public works: definition.

Status: 2/18/2022-Referred to Com. on L. & E.

Location: 2/18/2022-A. L. & E.

Summary: Current law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Current law defines the term "public works" for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified.

Existing law makes a willful violation of laws relating to the payment of prevailing wages on public works a misdemeanor.This bill would expand the definition of "public works" to include street sweeping maintenance performed for the preservation, protection, and keeping of any publicly owned or publicly operated street, road, or highway done under contract and paid for in whole or in part out of public funds.

Position
High Watch
AB 1910 (Garcia, Cristina D) Publicly owned golf courses: conversion: affordable housing.

Status: 2/18/2022-Referred to Coms. on H. & C.D. and L. GOV.

Location: 2/18/2022-A. H. & C.D.

Summary: Would, upon appropriation by the Legislature, require the Department of Housing and Community Development to administer a program to provide incentives in the form of grants to local agencies that enter into a development agreement to convert a golf course owned by the local agency into housing and publicly accessible open space, as specified. This bill would require the department to award funding in accordance with the number of affordable units a local agency proposes to construct.

Position
High Watch
AB 1932 (Daly D) Public contracts: construction manager at-risk construction contracts.

Status: 2/18/2022-Referred to Com. on L. GOV.

Location: 2/18/2022-A. L. GOV.

Summary: Current law authorizes, until January 1, 2023, a county, with approval of the board of supervisors, or a public entity, of which the members of the county board of supervisors make up the members of the governing body of that public entity, with the approval of its governing body, to utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any infrastructure, owned or leased by the county, subject to certain requirements, including that the method may only be used for projects that are in excess of $1,000,000.This bill would indefinitely extend those provisions, and would also make a nonsubstantive change.

Position
High Watch
49 AB 1944 (Lee D) Local government: open and public meetings.

Status: 2/18/2022-Referred to Com. on L. GOV.

Location: 2/18/2022-A. L. GOV.

Summary: Current law, the Ralph M. Brown Act, requires, with specified exceptions, that all meetings of a legislative body of a local agency, as those terms are defined, be open and public and that all persons be permitted to attend and participate. Current law, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with those specified teleconferencing requirements in specified circumstances when a declared state of emergency is in effect, or in other situations related to public health. This bill would specify that if a member of a legislative body elects to teleconference from a location that is not public, the address does not need to be identified in the notice and agenda or be accessible to the public when the legislative body has elected to allow members to participate via teleconferencing.

Position
High Watch
AB 1993 (Wicks D) Employment: COVID-19 vaccination requirements.

Status: 2/11/2022-From printer. May be heard in committee March 13.

Location: 2/10/2022-A. PRINT
Summary: Would require an employer to require each person who is an employee or independent contractor, and who is eligible to receive the COVID-19 vaccine, to show proof to the employer, or an authorized agent thereof, that the person has been vaccinated against COVID-19. This bill would establish an exception from this vaccination requirement for a person who is ineligible to receive a COVID-19 vaccine due to a medical condition or disability or because of a sincerely held religious belief, as specified, and would require compliance with various other state and federal laws. The bill would require proof-of-vaccination status to be obtained in a manner that complies with federal and state privacy laws and not be retained by the employer, unless the person authorizes the employer to retain proof.

Position
High Watch
AB 2062 (Salas D) Local law enforcement hiring grants.

Status: 2/15/2022-From printer. May be heard in committee March 17.

Location: 2/14/2022-A. PRINT
Summary: Would, upon appropriation of funds for this purpose in the annual Budget Act and until January 1, 2029, require the Board of State and Community Corrections to establish a grant program to provide $50,000,000 in grants to local law enforcement agencies to incentivize peace officers to work in local law enforcement agencies that are in underserved communities and to live in the communities that they are serving. The bill would require grant funds to be used to provide a 5-year supplement to peace officer salaries in local law enforcement agencies that are in underserved communities that have had a homicide rate higher than the state average for the past 5 years or more and where the peace officer lives within 5 miles of the office in which they work.

The bill would require local law enforcement agencies that receive grants to report specified information to the board annually and would require the board to report to the Legislature and the Governor’s office on the efficacy of the program, as prescribed, on or before July 1, 2028.

Position
High Watch
AB 2063 (Berman D) Density bonuses: affordable housing impact fees.

Status: 2/15/2022-From printer. May be heard in committee March 17.

Location: 2/14/2022-A. PRINT
Summary: The Density Bonus Law requires a city or county to provide a developer that proposes a housing development in the city or county with a density bonus and other incentives or concessions for the production of lower income housing units, or for the donation of land within the development, if the developer agrees to, among other things, construct a specified percentage of units for very low income, low-income, or moderate-income households or qualifying residents, including lower income students. Current law requires the amount of a density bonus and the number of incentives or concessions a qualifying developer receives to be pursuant to a certain formula based on the total number of units in the housing development, as specified. Existing law prohibits affordable housing impact fees, including inclusionary zoning fees and in-lieu fees, from being imposed on a housing development’s affordable units. This bill would prohibit affordable housing impact fees, including inclusionary zoning fees, in-lieu fees, and public benefit fees, from being imposed on a housing development’s density bonus units. 50 Position
High Watch
AB 2094 (Rivas, Robert D) General plan: annual report: extremely low-income housing.

Status: 2/15/2022-From printer. May be heard in committee March 17.

Location: 2/14/2022-A. PRINT
Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element.

Current law requires the planning agency of a city or county to provide an annual report to certain specified entities by April 1 of each year that includes, among other information, the city or county’s progress in meeting its share of regional housing needs and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing, as specified. This bill would additionally require a city or county’s annual report to include the locality’s progress in meeting the housing needs of extremely low income households, as specified.

Position
High Watch
AB 2097 (Friedman D) Residential and commercial development: remodeling, renovations, and additions: parking requirements.

Status: 2/15/2022-From printer. May be heard in committee March 17.

Location: 2/14/2022-A. PRINT
Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a land use element and a conservation element. This bill would prohibit a public agency from imposing a minimum automobile parking requirement, or enforcing a minimum automobile parking requirement, on residential, commercial, or other development if the development is located on a parcel that is within one-half mile of public transit, as defined. When a project provides parking voluntarily, the bill would authorize a public agency to impose specified requirements on the voluntary parking. The bill would prohibit these provisions from reducing, eliminating, or precluding the enforcement of any requirement imposed on a new multifamily or nonresidential development to provide electric vehicle supply equipment installed parking spaces or parking spaces that are accessible to persons with disabilities.

Position
High Watch
AB 2179 (Grayson D) Development fees and charges: deferral.

Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: Current law prohibits a local agency that imposes fees or charges on a residential development for the construction of public improvements or facilities from requiring the payment of those fees or charges until the date of the final inspection or the date the certificate of occupancy is issued, whichever occurs first, except that the payment may be required sooner under specified circumstances. This bill would similarly prohibit a noncompliant local agency, as defined, that imposes any fees or charges on a qualified development, as defined, from requiring the payment of those fees or charges until 20 years from the date of the final inspection, or the date the certificate of occupancy is issued, whichever occurs first.

Position
High Watch
AB 2186 (Grayson D) Housing Cost Reduction Incentive Program.

Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing 51 cities, counties, and cities and counties for development impact fee waivers or reductions provided to qualified rental housing developments. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee waived or reduced for a qualified rental housing development by issuing a Notice of Funding Availability for each calendar year in which funds are made available for the program, as provided.

The bill would require an applicant that receives a grant under the program to use those funds solely for those purposes for which the development impact fee that was waived or reduced would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act.

Position
High Watch
AB 2211 (Ting D) Shelter crisis: homeless shelters.

Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: Current law, among other things, exempts from the California Environmental Quality Act specified actions by a state agency or a city, county, or city and county relating to land owned by a local government to be used for, or to provide financial assistance to, a homeless shelter constructed pursuant to these provisions, and provides that homeless shelters constructed or allowed pursuant to these shelter crisis declarations are not subject to specified laws, including the Special Occupancy Parks Act. Current law defines a “homeless shelter” as a facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless that is not in existence after the declared shelter crisis. Current law provides that a temporary homeless shelter community may include supportive and self-sufficiency development services and that a homeless shelter includes a parking lot owned or leased by a city, county, or city and county specifically identified as one allowed for safe parking by homeless and unstably housed individuals. Current law repeals these provisions as of January 1, 2026. This bill would remove the repeal date from these provisions. This bill would provide that a city, county, or city and county is in a shelter crisis if the number of unsheltered homeless persons that comprises the total homeless population within the jurisdiction of the city, county, or city and county is greater, as a percentage, than the combined average of the 49 states in the United States not including California, as determined by the Department of Housing and Community Development, as specified.

Position
High Watch
AB 2226 (Cervantes D) California Main Street Program.

Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: (1)Existing law authorizes the Governor’s Office of Business and Economic Development to develop content for public dissemination to provide information and resources to inform the general public about place-based and other specified geographically targeted economic development programs.This bill would include among those specified programs the California Main Street Program, which is administered by the State Office of Historic Preservation, and cultural districts certified by the Arts Council. This bill contains other related provisions and other existing laws.

Position
High Watch
AB 2229 (Rivas, Luz D) Peace officers: minimum standards: bias evaluation.

Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: Current law requires peace officers in this state to meet specified minimum standards, including, among other requirements, that peace officers be evaluated by a physician and surgeon or psychologist and found to be free from any physical, emotional, or mental condition that might adversely affect the exercise of the powers of a peace officer. This bill would require that evaluation to include bias against race or ethnicity, gender, nationality, religion, disability, or sexual orientation.

Position
High Watch
AB 2233 (Quirk-Silva D) Public Housing Loan Fund and Program: Public Housing Financing Authority.
52 Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: Existing law establishes the California Health Facilities Financing Authority (CHFFA) for purposes of administering the California Health Facilities Financing Authority Act. Existing law authorizes, among other things, the authority to make secured or unsecured loans to, or purchase secured or unsecured loans of, any participating health institution in accordance with an agreement between the authority and the participating health institution to refinance indebtedness incurred by that participating health institution or a participating health institution that controls or manages, is controlled or managed by, is under common control or management with, or is affiliated with that participating health institution, in connection with projects undertaken or for health facilities acquired or for working capital.This bill would establish the Public Housing Loan Fund for purposes of establishing and administering, upon appropriation by the Legislature, the Public Housing Loan Program and making loans pursuant to that program. The bill would require CHFFA to administer the fund and program from January 1, 2023, to December 31, 2025, and would require the Public Housing Financing Authority (PHFA), as established on January 1, 2025, in the Treasurer’s office by the bill, to administer the fund and program on and after January 1, 2026. The bill would authorize the CHFFA and PHFA to make and award loans from the fund for purposes of the program. This bill would require the CHFFA or PHFA, as applicable, to establish requirements for a local agency to be eligible to receive a loan under the program, including, but not limited to, requiring that the loan be used to cover construction costs for public housing on property owned by the local agency.

Position
High Watch
AB 2234 (Rivas, Robert D) Planning and zoning: housing: post-entitlement phase permits.

Status: 2/15/2022-From printer. May be heard in committee March 18.

Location: 2/15/2022-A. PRINT
Summary: (1)Existing law, the Permit Streamlining Act, which is part of the Planning and Zoning Law, requires each public agency to provide a development project applicant with a list that specifies the information that will be required from any applicant for a development project. The act requires public agencies to approve or disapprove of a development project within certain specified timeframes. Existing law requires a city, county, or special district to provide specified information, including a current schedule of fees, exactions, and affordability requirements applicable to a proposed housing development project, and an archive of impact fee nexus studies, cost of service studies, or equivalent studies, conducted by the city, county, or special district, on its internet website.This bill would require a public agency to create a list of information needed to approve or deny a post-entitlement phase permit, as defined, and to make that list available to all applicants for these permits no later than January 1, 2024. No later than January 1, 2024, the bill would require a public agency to require permits to be applied for, completed, and stored through a process on its internet website, and to accept applications and related documentation by electronic mail until that internet website is established. The bill would require the internet website or electronic mail to list the current processing status of the applicant’s permit by the public agency, and would require that status to note whether it is being reviewed by the agency or action is required from the applicant. This bill contains other related provisions and other existing laws.

Position
High Watch
AB 2264 (Bloom D) Pedestrian crossing signals.

Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: Under current law, a pedestrian control signal showing a "WALK" or approved "Walking Person" symbol means a pedestrian may proceed across the roadway in the direction of the signal.

Under current law, a pedestrian facing a flashing "DON’T WALK" or "WAIT" or approved "Upraised Hand" symbol with a "countdown" signal, as specified, means a pedestrian may start crossing the roadway in the direction of the signal but requires the pedestrian to finish crossing prior to the display of the steady "DON’T WALK" or "WAIT" or approved "Upraised Hand" symbol, as specified.

This bill would require the Department of Transportation and local authorities to update all pedestrian control signals to operate giving a pedestrian a head start between 3 to 7 seconds to enter an intersection with a corresponding circular green signal, as specified.

Position
High Watch
AB 2319 (Bonta, Mia D) Surplus land: former military base land. 53 Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: Current law prescribes requirements for the disposal of surplus land by a local agency.

Current law defines "surplus land" for these purposes to mean land owned in fee simple by any local agency for which the local agency’s governing body takes formal action declaring that the land is surplus and is not necessary for the agency’s use. Existing law provides that an agency is not required to follow the requirements for disposal of surplus land for "exempt surplus land" except as provided. Current law categorizes as "exempt surplus land" surplus land that a local agency is transferring to another local, state, or federal agency for the agency’s use. This bill would add to the definition of "exempt surplus land," land that is a former military base conveyed by the federal government to a local agency, is subject to certain provisions governing the Alameda Naval Air Station and the Fleet Industrial Supply Center, and meets other specified conditions. This bill contains other related provisions.

Position
High Watch
AB 2328 (Flora R) Local ordinances: home experience sharing.

Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: Current law defines "hosting platform" as a marketplace that is created for the primary purpose of facilitating the rental of a residential unit, as specified. This bill would prohibit a city or county from prohibiting or effectively prohibiting the use of property as a home experience sharing unit. The bill would define "home experience sharing unit" as a privately owned, noncommercial property or residential dwelling unit that is rented partially for a fee for a period of fewer than 18 continuous hours and that does not provide sleeping accommodations to transients. The bill would authorize a city or county to reasonably regulate home experience sharing units to protect the public’s health and safety, as specified. This bill contains other related provisions.

Position
High Watch
AB 2334 (Wicks D) Density Bonus Law: affordability: incentives or concessions in low vehicle travel areas: parking standards: definitions.

Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: Current law, referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housing development within the city or county with a density bonus and other incentives or concessions, as specified, if the developer agrees to construct specified percentages of units for lower income, very low income, or senior citizen housing, among other things, and meets other requirements. Existing law requires that an applicant agree to, and the city, county, or city and county ensure, the continued affordability of all very low and low-income rental units that qualified the applicant for a density bonus, as provided. This bill, with respect to the affordability requirements applicable to 100% lower income developments, would instead require the rent for the remaining units in the development be set at an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by CTCAC. The bill, with regard to the enforcement of equity sharing agreements for for-sale units, would also permit the local government to defer to the recapture provisions of the public funding source. The bill would also make a technical change to the Density Bonus Law by deleting duplicative provisions relating to for-sale units subject to the above-described provisions.

Position
High Watch
AB 2339 (Bloom D) Housing element: emergency shelters: regional housing need.

Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes a housing element. Current law requires that the housing element identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and make adequate provision for the existing and projected needs of all economic segments of a community. Current law also requires that the housing element include an analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels. This bill would revise the requirements of the housing 54 element, as described above, in connection with zoning designations that allow residential use, including mixed use, where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The bill would prohibit a city or county from establishing overlay districts to comply with these provisions.

Position
High Watch
AB 2342 (Cervantes D) Community Economic Resilience Fund Program.

Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: Current law establishes the Community Economic Resilience Fund Program within the Workforce Services Branch of the Employment Development Department within the Labor and Workforce Development Agency. Current law requires the branch and the Inter-Agency Leadership Team, comprised of the Labor and Workforce Development Agency, the Office of Planning and Research, and the Governor’s Office of Business and Economic Development, to administer the program. Current law makes the team jointly responsible for planning, oversight, and decisionmaking, as specified, and sets forth the specifics of the team’s composition and duties. This bill would, among other things, require the Inter-Agency Leadership Team to include policies for grant funds to fund business and workforce investments in multiple sectors, state and federal recognized apprenticeship and preapprenticeship programs, and other workforce programs that support career pathways to high road jobs, require collaboratives to engage local and regional planning efforts, and require the Workforce Services Branch to make available copies of the reports on the internet websites of each agency of the Inter-Agency Leadership Team within 30 days of submitting the reports.

Position
High Watch
AB 2357 (Ting D) Surplus land.

Status: 2/17/2022-From printer. May be heard in committee March 19.

Location: 2/16/2022-A. PRINT
Summary: Current law requires the Department of Housing and Community Development to maintain on its internet website, an up-to-date listing of all notices of availability throughout the state. This bill would also require the department to maintain on its internet website a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.

Position
High Watch
AB 2386 (Bloom D) Planning and zoning: tenancy in common subject to an exclusive occupancy agreement.

Status: 2/18/2022-From printer. May be heard in committee March 20.

Location: 2/17/2022-A. PRINT
Summary: Current law provides for the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities, as specified. Current law authorizes the legislative body of any county or city to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, including agriculture, recreation, enjoyment of scenic beauty, use of natural resources, and other purposes.

This bill would specify that regulation, by ordinance, of the design and improvement of any multifamily property held under a tenancy in common subject to an exclusive occupancy agreement, as defined, is vested in the legislative body of the local agency.

Position
High Watch
AB 2428 (Ramos D) Mitigation Fee Act: fees for improvements: timeline for expenditure.

Status: 2/18/2022-From printer. May be heard in committee March 20.

Location: 2/17/2022-A. PRINT
Summary: The Mitigation Fee Act, requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. The Mitigation Fee Act also imposes additional requirements for fees imposed to provide for an improvement to be constructed to serve a development project, or which is a fee for public improvements, as specified, including that the fees be deposited in a separate capital facilities 55 account or fund. This bill would require a local agency that requires a qualified applicant, as described, to deposit fees for improvements, as described, into an escrow account as a condition for receiving a conditional use permit or equivalent development permit to expend the fees within 5 years of the deposit.

Position
High Watch
AB 2449 (Rubio, Blanca D) Open meetings: local agencies: teleconferences.

Status: 2/18/2022-From printer. May be heard in committee March 20.

Location: 2/17/2022-A. PRINT
Summary: Current law, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with specified teleconferencing requirements in specified circumstances when a declared state of emergency is in effect, or in other situations related to public health. This bill would authorize a local agency to use teleconferencing without complying with those specified teleconferencing requirements if at least a quorum of the members of the legislative body participates in person from a singular location clearly identified on the agenda that is open to the public and situated within the local agency’s jurisdiction. The bill would impose prescribed requirements for this exception relating to notice, agendas, the means and manner of access, and procedures for disruptions. The bill would require the legislative body to implement a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with federal law.

Position
High Watch
AB 2485 (Choi R) California Environmental Quality Act: exemption: emergency shelters and supportive housing.

Status: 2/18/2022-From printer. May be heard in committee March 20.

Location: 2/17/2022-A. PRINT
Summary: CEQA includes exemptions from its environmental review requirements for numerous categories of projects. This bill would exempt from the requirements of CEQA emergency shelters and supportive housing, as defined.

Position
High Watch
AB 2531 (Grayson D) Housing data: collection and reporting.

Status: 2/18/2022-From printer. May be heard in committee March 20.

Location: 2/17/2022-A. PRINT
Summary: Current law requires a city, county, or special district that has an internet website to make specified information available on its internet website, as applicable, including a current schedule of fees, exactions, affordability requirements it has imposed that are applicable to a proposed housing development project, and an archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by that city, county, or special district on or after January 1, 2018.

Current law requires a city, county, or special district to update this information within 30 days of any changes. This bill would instead require a city, county, or special district that has an internet website to create a landing page with links to the specified information on its website, as applicable.

This bill would also make a nonsubstantive change to these provisions.

Position
High Watch
AB 2536 (Grayson D) Development fees: connection fees and capacity charges: studies.

Status: 2/18/2022-From printer. May be heard in committee March 20.

Location: 2/17/2022-A. PRINT
Summary: Current law requires a local agency that conducts an impact fee nexus study to follow certain standards and practices, as specified. Current law also requires a local agency to hold at least one open and public meeting prior to levying a new fee or service charge, as specified. This bill would, on and after January 1, 2023, require a local agency that imposes fees for water connections or sewer connections, or imposes capacity charges, as provided, and that conducts a study to support the estimate of the reasonable cost of providing the service to follow certain standards and practices, as defined and specified.

Position
High Watch
56 AB 2625 (Ting D) Surplus land: public park and recreational purposes: development.

Status: 2/19/2022-From printer. May be heard in committee March 21.

Location: 2/18/2022-A. PRINT
Summary: Current law requires land retained or transferred for public park and recreational purposes by a local agency to be developed within 10 years and used for at least 25 years, following the retention or transfer for those purposes in accordance with the general plan for the city or county in which the land is located. Current law otherwise requires the land to be sold by the local agency and the funds received from the sale to be used for highway purposes. Existing law also provides that if the land originally had been transferred for those purposes, it shall revert to the original acquiring local agency for the sale. This bill would instead require land retained or transferred for public park and recreational purposes, in the above-described circumstances, to be developed within 5 years and used for at least 30 years following the retention or transfer for those purposes.

Position
High Watch
AB 2647 (Levine D) Local government: open meetings.

Status: 2/19/2022-From printer. May be heard in committee March 21.

Location: 2/18/2022-A. PRINT
Summary: The Ralph M. Brown Act requires the meetings of the legislative body of a local agency to be conducted openly and publicly, with specified exceptions. Current law makes agendas of public meetings and other writings distributed to the members of the governing board disclosable public records, with certain exceptions. Current law requires a local agency to make those writings distributed to the members of the governing board available for public inspection at a public office or location that the agency designates. This bill would instead require a local agency to make those writings distributed to the members of the governing board available for public inspection at a public office or location that the agency designates or post the writings on the local agency’s internet website in a position and manner that makes it clear that the writing relates to an agenda item for an upcoming meeting.

Position
High Watch
AB 2668 (Grayson D) Planning and zoning: housing: streamlined, ministerial approval.

Status: 2/19/2022-From printer. May be heard in committee March 21.

Location: 2/18/2022-A. PRINT
Summary: Would prohibit a local government from determining that a development, including an application for a modification, is in conflict with the objective planning standards on the basis that application materials are not included, if the application contains sufficient information that would allow a reasonable person to conclude that the development is consistent with the objective planning standards. This bill contains other existing laws.

Position
High Watch
AB 2719 (Fong R) California Environmental Quality Act: exemptions: highway safety improvement projects.

Status: 2/19/2022-From printer. May be heard in committee March 21.

Location: 2/18/2022-A. PRINT
Summary: CEQA includes exemptions from its environmental review requirements for numerous categories of projects, including, among others, emergency projects undertaken, carried out, or approved by a public agency to maintain, repair, or restore an existing highway under specified circumstances. This bill would further exempt from the requirements of CEQA highway safety improvement projects, as defined, undertaken by the Department of Transportation or a local agency.

Position
High Watch
ACA 1 (Aguiar-Curry D) Local government financing: affordable housing and public infrastructure: voter approval.

Status: 4/22/2021-Referred to Coms. on L. GOV. and APPR.

Location: 4/22/2021-A. L. GOV.

Summary: The California Constitution prohibits the ad valorem tax rate on real property from 57 exceeding 1% of the full cash value of the property, subject to certain exceptions. This measure would create an additional exception to the 1% limit that would authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, or city and county, as applicable, and the proposition includes specified accountability requirements.

Position
High Watch
ACA 7 (Muratsuchi D) Local government: police power: municipal affairs: land use and zoning.

Status: 3/17/2021-From printer. May be heard in committee April 16.

Location: 3/16/2021-A. PRINT
Summary: Would provide that a county or city ordinance or regulation enacted under the police power that regulates the zoning or use of land within the boundaries of the county or city would prevail over conflicting general laws, with specified exceptions. The measure, in the event of the conflict with a state statute, would also specify that a city charter provision, or an ordinance or regulation adopted pursuant to a city charter, that regulates the zoning or use of land within the boundaries of the city is deemed to address a municipal affair and prevails over a conflicting state statute, except that the measure would provide that a court may determine that a city charter provision, ordinance, or regulation addresses either a matter of statewide concern or a municipal affair if it conflicts with specified state statutes. The measure would make findings in this regard and provide that its provisions are severable.

Position
High Watch
SB 841 (Jones R) Sexually violent predators.

Status: 2/7/2022-Art. IV. Sec. 8(a) of the Constitution dispensed with. (Ayes 31. Noes 6.) Joint Rule 55 suspended. (Ayes 31. Noes 6.)
Location: 1/19/2022-S. PUB. S.

Summary: Current law requires the State Department of State Hospitals to notify the sheriff or chief of police, or both, the district attorney, or the county’s designated counsel, as specified, when the department makes a recommendation to the court for community outpatient treatment for a person committed as a sexually violent predator, or when a person who is committed as a sexually violent predator has petitioned a court for conditional release under supervision and treatment in the community pursuant to a conditional release program, or has petitioned a court for subsequent unconditional discharge, and a community placement is recommended or proposed. Current law requires a sexually violent predator who is conditionally released to be placed in the county that was the person’s county of domicile prior to the person’s incarceration, unless extraordinary circumstances exist requiring placement outside the county, as specified.

Position
High Watch
SB 849 (Umberg D) Surplus land.

Status: 2/7/2022-Art. IV. Sec. 8(a) of the Constitution dispensed with. (Ayes 31. Noes 6.) Joint Rule 55 suspended. (Ayes 31. Noes 6.)
Location: 1/14/2022-S. RLS.

Summary: Current law prescribes requirements for the disposal of surplus land by a local agency.

Current law exempts from these requirements exempt surplus land, as defined.This bill would make nonsubstantive changes to those provisions.

Position
High Watch
SB 852 (Dodd D) Climate resilience districts: formation: funding mechanisms.

Status: 2/7/2022-Art. IV. Sec. 8(a) of the Constitution dispensed with. (Ayes 31. Noes 6.) Joint Rule 55 suspended. (Ayes 31. Noes 6.)
Location: 1/26/2022-S. GOV. & F.

Summary: Current law authorizes certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization. Existing law provides for the financing of these activities by, among other things, the issuance of bonds serviced by 58 property tax increment revenues, and requires the authority to adopt a community revitalization and investment plan for the community revitalization and investment area that includes elements describing and governing revitalization activities. This bill would authorize a city, county, city and county, special district, or a combination of any of those entities to form a climate resilience district for the purposes of raising and allocating funding for eligible projects and the operating expenses of eligible projects. The bill would define "eligible project" for these purposes.

Position
High Watch
SB 897 (Wieckowski D) Accessory dwelling units: junior accessory dwelling units.

Status: 2/23/2022-Set for hearing March 24.

Location: 2/9/2022-S. HOUSING
Summary: Thee Planning and Zoning Law authorizes a local agency, by ordinance or ministerial approval, to provide for the creation of accessory dwelling units in areas zoned for residential use, as specified. Current law provides that an accessory dwelling unit may either be an attached or detached residential dwelling unit, and prescribes the minimum and maximum unit size requirements, height limitations, and setback requirements that a local agency may establish, including a 16-foot height limitation and a 4-foot side and rear setback requirement.This bill would increase the maximum height limitation that may be imposed by a local agency on an accessory dwelling unit to 25 feet.

Position
High Watch
SB 948 (Becker D) Housing finance programs: development reserves.

Status: 2/16/2022-Referred to Com. on HOUSING.

Location: 2/16/2022-S. HOUSING
Summary: Current law establishes various programs and funding sources administered by the Department of Housing and Community Development to enable the development of affordable housing, including the Building Homes and Jobs Act, the Multifamily Housing Program, the Housing for a Healthy California Program, and the Veterans Housing and Homeless Prevention Act of 2014.

Under current law governing the State Community Development Block Grant Program, the department is required to distribute funds made available under the program in order to provide decent housing, a suitable living environment, and expand economic opportunities, consistent with federal requirements. Existing federal law also establishes the HOME Investment Partnership Program to, among other things, expand the supply of affordable housing. Existing law designates the department as the state agency responsible for administering the HOME Investment Partnership Act. This bill would prohibit the department from requiring a project-specific transition reserve, as defined, for any unit subject to a qualified project rental or operating subsidy. This bill would create the Pooled Transition Reserve Fund and would continuously appropriate moneys in that fund to the department for the purpose of maintaining a pooled transition reserve to mitigate the impacts on tenant rents from the loss or exhaustion of rental or operating subsidies. This bill would prescribe the sources from which the fund may receive moneys.

Position
High Watch
SB 1100 (Cortese D) Open meetings: orderly conduct.

Status: 2/23/2022-Referred to Coms. on GOV. & F. and JUD.

Location: 2/23/2022-S. GOV. & F.

Summary: Would authorize the members of the legislative body conducting a meeting to remove an individual for willfully interrupting the meeting. The bill, except as provided, would require removal to be preceded by a warning, either by the presiding member of the legislative body or a law enforcement officer, that the individual is disrupting the proceedings and a request that the individual curtail their disruptive behavior or be subject to removal. The bill would similarly require a warning before clearing a meeting room for willful interruptions by a group or groups. The bill would define “willfully interrupting” to mean intentionally engaging in behavior during a meeting of a legislative body that substantially impairs or renders infeasible the orderly conduct of the meeting in accordance with law. The term would include failure to comply with a reasonable regulation adopted in accordance with existing law after a warning and request in accordance with the bill, as applicable. By establishing new requirements for local legislative bodies, this bill would impose a state-mandated program.

Position
High Watch
59 SB 1117 (Becker D) General plans: environmental justice element.

Status: 2/23/2022-Referred to Coms. on GOV. & F. and E.Q.

Location: 2/23/2022-S. GOV. & F.

Summary: Existing law, the Planning and Zoning Law, requires the legislative body of a city or county to adopt a comprehensive general plan that includes various elements, including an environmental justice element. Existing law requires a city, county, or city and county to adopt or review the environmental justice element, or the environmental justice goals, policies, and objectives in other elements, upon the adoption or next revision of 2 or more elements concurrently on or after January 1, 2018.This bill would instead require a city, county, or city and county to adopt or review the environmental justice element, as described above, upon the adoption or next revision of one or more elements. By requiring a city, county, or city and county to adopt or review the environmental justice element upon the next revision, as specified, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.

Position
High Watch
SB 1194 (Allen D) Public restrooms: building standards.

Status: 2/18/2022-From printer.

Location: 2/17/2022-S. RLS.

Summary: This bill would authorize a city, county, or city and county to require, by ordinance or resolution, that public restrooms constructed within its jurisdiction comply with specified requirements instead of complying with the plumbing standards set forth in the California Building Standards Code. This bill would set bathroom requirements, including, among others, that the occupancy load for each sex be determined by dividing the total occupancy 1/2 , that single-user toilets and bathing rooms, including family or assisted-use toilet rooms and bathing rooms, be identified for use by either sex, that separate facilities be provided for each sex where plumbing fixtures are required, and that separate facilities not be required in specified circumstances.

Position
High Watch
SB 1252 (Committee on Housing) Housing.

Status: 2/18/2022-From printer.

Location: 2/17/2022-S. RLS.

Summary: Current law authorizes a city or county that created a subsequently dissolved redevelopment agency to elect to retain the housing assets and functions previously performed by the agency, which entity is referred to as a housing successor. Current law requires that if all or any portion of a redevelopment project was developed with low- or moderate-income housing units and those units were developed with any agency assistance or pursuant to specified provisions, the agency or its successor shall require, by contract, that the housing be made available for rent or purchase to the persons and families of low or moderate income displaced by the redevelopment project and to persons of low or moderate income who are descendants of the person displaced by the redevelopment project and who, at the time of displacement, were not living in the household or had not yet been born, as specified. This bill would additionally require that the housing be made available to those persons and families described above if they meet the income eligibility and other requirements for that housing, and would make other conforming changes.

Position
High Watch
SB 1292 (Stern D) Accessory dwelling units: setbacks.

Status: 2/22/2022-From printer.

Location: 2/18/2022-S. RLS.

Summary: The Planning and Zoning Law, among other things, provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. Current law prohibits a local agency’s accessory dwelling unit ordinance from imposing a setback requirement of more than 4 feet from the side and rear lot lines for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. This bill would remove the above-described prohibition on a local agency’s accessory dwelling unit ordinance, and would instead provide that the rear and side yard setback requirements for accessory dwelling units may be set by the local agency. The bill would authorize an accessory dwelling unit applicant to submit a request to the local agency for an alternative rear and side yard setback requirement if the local agency’s setback requirements make the building of 60 the accessory dwelling unit infeasible. The bill would prohibit any rear and side yard setback requirements established pursuant to these provisions from being greater than those in effect as of January 1, 2020. The bill would specify that if the local agency did not have an accessory dwelling unit ordinance as of January 1, 2020, the applicable rear and side yard setback requirement is 4 feet. This bill contains other related provisions and other existing laws.

Position
High Watch
SB 1333 (Bates R) Sexually violent predators.

Status: 2/22/2022-From printer.

Location: 2/18/2022-S. RLS.

Summary: Current law provides for the civil commitment of a person who is determined to be a sexually violent predator. Current law establishes a procedure by which a person committed as a sexually violent predator may petition for conditional release and requires the court, if it makes a specified determination, to place the person on conditional release. Current law requires that a person released on conditional release pursuant to these provisions be placed in the county of domicile unless certain conditions are satisfied. This bill would also require, as a condition to placing a person in a county other than their county of domicile, the proposed designated county of placement to be provided specified evidence prior to the court ordering the person to be placed in a county other than the county of domicile, and the designated county of placement to have a meaningful opportunity to seek appellate review in its appellate court district. This bill contains other related provisions and other existing laws.

Position
High Watch
SB 1354 (Jones R) Design-build contracting: cities, counties, and cities and counties: compliance with the federal Americans with Disabilities Act of 1990.

Status: 2/22/2022-From printer.

Location: 2/18/2022-S. RLS.

Summary: Would authorize a city, county, or city and county to use the design-build contracting process to award contracts for constructing projects that are necessary in order to comply with the federal Americans with Disabilities Act of 1990. By expanding design-build authority to include additional projects, the bill would expand the scope of the crime of perjury, thereby imposing a state-mandated local program.

Position
High Watch
SB 1369 (Wieckowski D) Adaptive reuse projects: by-right: funding.

Status: 2/22/2022-From printer.

Location: 2/18/2022-S. RLS.

Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect.

CEQA does not apply to the approval of ministerial projects. This bill would make an adaptive reuse project a use by right in all areas regardless of zoning. The bill would define "adaptive reuse project" to mean any commercial, public, industrial, or office building or structure that has 25- percent occupancy or less, which is converted into a housing development project.

Position
High Watch
SB 1373 (Kamlager D) Surplus land disposal.

Status: 2/22/2022-From printer.

Location: 2/18/2022-S. RLS.

Summary: Current law prescribes requirements for the disposal of surplus land by a local agency, as defined. Current law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, without regard to specified amendments that took effect on January 1, 2020, if those dispositions comply with specified requirements and the disposition is completed not later than December 31, 2022. Current law extends the date that the disposition must be completed by to December 31, 2024, for specified properties, including properties related to the Metro North Hollywood Joint Development Project.

Current law further extends the dates by which the disposition of property must be completed, as 61 specified. This bill extend the date by which the disposition of property must be completed to December 31, 2024, if the property is located in a local agency with a population of over 2,000,000 persons and the local agency has either an option agreement duly authorized by the local agency’s governing body to purchase the property from the former redevelopment agency, or an exclusive negotiation agreement with a private entity to develop the subject property for economic development or housing purposes.

Position
High Watch
SB 1464 (Pan D) Law enforcement: public health orders.

Status: 2/22/2022-From printer.

Location: 2/18/2022-S. RLS.

Summary: Current law requires all sheriffs to execute all lawful orders of a department in their counties. Current law authorizes each sheriff to enforce all orders of the State Department of Public Health or of the local health officer issued for the purpose of preventing the spread of any contagious, infectious, or communicable disease. Current law authorizes each peace officer of every political subdivision of the county to enforce within the area subject to their jurisdiction all orders of the State Department of Public Health or of the local health officer issued for the purpose of preventing the spread of any contagious, infectious, or communicable disease. This bill would instead require those sheriffs and peace officers to enforce those orders.

Position
High Watch
SCA 2 (Allen D) Public housing projects.

Status: 1/26/2022-Read. Adopted. (Ayes 37. Noes 0.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk.

Location: 1/26/2022-A. DESK
Summary: The California Constitution prohibits the development, construction, or acquisition of a low-rent housing project, as defined, in any manner by any state public body until a majority of the qualified electors of the city, town, or county in which the development, construction, or acquisition of the low-rent housing project is proposed approve the project by voting in favor at an election, as specified. This measure would repeal these provisions.

Position
High Watch
SCA 9 (Gonzalez D) Personal rights: right to housing.

Status: 2/22/2022-From printer. May be acted upon on or after March 21.

Location: 2/18/2022-S. RLS.

Summary: Would declare that the fundamental human right to housing exists in this state. The measure would specify that it is the shared obligation of state and local jurisdictions to respect, protect, and fulfill this right through progressively implemented measures, consistent with available resources, within an aggressive but reasonable timeframe.

Position
High Watch
Total Measures: 77
Total Tracking Forms: 77
62 Department: Planning
Prepared By: Thomas Grahn
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Reviewed By: Kimberly Ruddins, Charles
Mercier, Rudy Zeledon
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 11
SUBJECT: A PUBLIC HEARING TO CONSIDER: (1) A GENERAL PLAN AMENDMENT (FILE NO.

PGPA21-004) FOR THE HOUSING ELEMENT UPDATE TO THE POLICY PLAN (GENERAL PLAN) COMPONENT OF THE ONTARIO PLAN, ADDRESSING STATE

MANDATES AND THE SIXTH CYCLE REGIONAL HOUSING NEEDS ALLOCATION (RHNA) AND TO MODIFY THE POLICY PLAN LAND USE PLAN (EXHIBIT LU-01) TO ESTABLISH AN AFFORDABLE HOUSING OVERLAY; (2) A ZONE CHANGE (FILE NO.

PZC21-002) MODIFYING THE OFFICIAL ZONING MAP TO ESTABLISH AN "AH" (AFFORDABLE HOUSING) OVERLAY ZONING DISTRICT; AND, (3) A DEVELOPMENT CODE AMENDMENT (FILE NO. PDCA21-001) REVISING SECTION 6.01.035 FOR THE PURPOSE OF ADDING PROVISIONS TO ESTABLISH AN "AH" (AFFORDABLE HOUSING) OVERLAY DISTRICT.

CITY OF ONTARIO
Agenda Report
March 1, 2022
SECTION:

PUBLIC HEARINGS
RECOMMENDATION: That the City Council consider the following:

A. The adoption of a Resolution approving the use of an Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140); B. The adoption of a Resolution approving the General Plan Amendment, File No. PGPA21-004, for the Housing Element Update to the Policy Plan component of The Ontario Plan, addressing State mandates and the Sixth Cycle Regional Housing Needs Allocation (RHNA) and to modify the Policy Plan Land Use Plan (Exhibit LU-01), establishing the Affordable Housing Overlay;
C. The introduction and waiving of further reading of an Ordinance approving the Zone Change, File No. PZC21-002, revising the Zoning Map to establish the "AH" (Affordable Housing) Overlay zoning district; and
D. The introduction and waiving of further reading of an Ordinance approving the Development Code Amendment, File No. PDCA21-001, adding provision to establish the "AH" (Affordable Housing) Overlay zoning district.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy 63 Maintain the Current High Level of Public Safety
Operate in a Businesslike Manner
Pursue City's Goals and Objectives by Working with Other Governmental Agencies Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: The proposed General Plan Amendment, Zone Change, and Development Code Amendment will have no direct fiscal impact to the City.

BACKGROUND & ANALYSIS: The proposed project is an update to the Housing Element and includes related applications to establish and implement an Affordable Housing Overlay to support the necessary residential densities to achieve the City's Regional Housing Needs Assessment ("RHNA").

GENERAL PLAN AMENDMENT (FILE NO. PGPA21-004) — This General Plan Amendment includes the Housing Element update to the Policy Plan (General Plan) component of The Ontario Plan ("TOP"), addressing State mandates, the 6th Cycle RHNA, and a modification to the Policy Plan Land Use Plan, Exhibit LU-01, ("TOP Map LU-01") to establish an Affordable Housing Overlay.

HOUSING ELEMENT UPDATE — The Housing Element is one of the seven mandated elements of the General Plan, which each city and county in the State is required to periodically adopt (generally every eight years). The Housing Element is required to adequately plan to meet the existing and projected housing needs of all economic segments of the community. This Housing Element Cycle (6th Cycle) covers the RHNA period from October 15, 2021 through October 15, 2029. The Housing Element is the only element of the general plan reviewed and certified by the State to ensure compliance with State law.

PUBLIC PARTICIPATION — The California Government Code requires that local governments make a diligent effort to solicit public participation from all economic segments of the community in the development of the draft Housing Element. The following provides a general timeline describing major milestones in preparing Ontario's draft 2021–2029 Housing Element Update:

June 14, 2021 – Property Owner Open House – Staff hosted a virtual open house to provide an overview of the TOP 2050 Project and land use designation changes on specific properties as part of the City's housing strategy to fulfill the 6th RHNA Cycle site inventory obligation.

June 28, 2021 – Community Workshop #1 – Staff hosted a virtual workshop to present the TOP 2050 update, including the City's housing strategy to receive comments, and answer questions from the public.

July 29, 2021 – Community Workshop #2 – Staff hosted a virtual workshop to facilitate a guided discussion of the environmental justice, community health, and resiliency policies, and share the City's preferred land use plan and housing strategy. The intent of Community Workshop #2 was to further inform the community of policy updates and gather feedback regarding the preferred land use plan.

August 31, 2021 – In compliance with Senate Bill 18 notification requirements (Tribal Consultation), the City mailed a separate project notice to 16 local tribes identified by the Native American Heritage Commission (NAHC). No consultation requests were received 64 during the requisite 90-day response period.

October 14, 2021 – City staff posted the Ontario Housing Element 2021-2029 – Public Review Draft on Ontarioplan.org/TOP2050 and submitted the draft to California Department of Housing and Community Development ("HCD") for a 60-day review.

December 20, 2021 – The Planning Commission held a duly noticed public hearing on the proposed Housing Element and adopted Resolution Nos. PC21-093, PC21-094, PC21-095, and PC21-096, recommending that City Council approve the Addendum to the Ontario Plan EIR, the General Plan Amendment, the Zone Change, and the Development Code Amendment. No members of the public attended the meeting and Staff did not receive any written or verbal statements. A copy of the Planning Commission staff report, meeting minutes and Resolution Nos. PC21-093, PC21-094, PC21-095, and PC21-096 are included (see Attachment A) .

REGIONAL HOUSING NEEDS ASSESSMENT — The Southern California Association of Governments ("SCAG") is responsible for oversight of the RHNA process for much of Southern California. For the 2021–2029 RHNA planning period, the City has been allocated 20,854 housing units to accommodate the estimated growth needed at various income levels. As required by California law, the Housing Element must identify the City's ability to accommodate this estimated growth through available sites and appropriate zoning. Ontario's 6th RHNA Cycle allocation includes the following:

City of Ontario 6th Cycle RHNA Allocation by Income Category Income Category (Percent of Area Median Income
"AMI")
RHNA Allocation
Very Low (31% to 50%) 5,640
Low (51% to 80%) 3,286
Moderate (81% to 120%) 3,329
Above Moderate (121% or more) 8,599
Total 20,854
Source: SCAG 2021
The proposed 2021–2029 Housing Element must demonstrate the City's ability to accommodate the RHNA housing allocation either through production or the availability of properly zoned land that can accommodate additional growth. If adequate sites cannot be identified through existing zoning, the City is required to rezone sites that can accommodate the remaining need at a minimum density of 30 dwelling units per acre, the default density set by the State Department of Housing and Community Development ("HCD"). The City is not required to build residential units in order to meet its RHNA allocation, only to identify potential sites and create the framework allowing the market the opportunity to develop these units.

SB 330 Housing Crisis Act: Prohibits the downzoning of any residential property without a corresponding increase in another location. Reduces the length of the entitlement process and provides greater certainty on development standards and fees. The offset upzoning must take place concurrently and provide no net loss in residential capacity.

SB 35 Streamlined Approval for Housing Projects: Expedites the construction of affordable housing in places where the permitting or construction of housing is slower than compared to the RHNA. If housing production of above moderate RHNA is below the annual target, projects with 10 percent low-income housing are eligible for streamlining. If housing production of low-income RHNA is below the annual target, projects with 50 percent lowincome housing are eligible for streamlining.

SB 166 No Net Loss Zoning: Cities must build or maintain capacity for 100 percent of their RHNA requirement throughout the entire planning period.

AB 1397 Non-Vacant Sites: Provides for increased scrutiny on the development potential for underutilized sites included in the RHNA land inventory.

AB 72 Increased HCD Enforcement: HCD may revoke certification and report any violations to the Attorney General on a jurisdictions failure to comply.

AB 686 Housing Discrimination (Affirmatively Furthering Fair Housing ("AFFH"): Jurisdictions must facilitate deliberate action to address, combat, and relieve disparities resulting from past patterns of segregation to foster more inclusive communities.

AB 167 Housing Accountability Act: Prohibits reducing density, disapproving, or conditioning approvals of a lower/moderate income housing development project or emergency shelter if they comply with zoning and objective development standards. 2021-2029 ONTARIO HOUSING ELEMENT CONTENT — California Housing Element law prescribes the scope and content of the Housing Element. Pursuant to Section 65583 of the California Government Code, the Housing Element must contain a variety of detailed analyses, listed below.

Analysis of demographic, social, and housing characteristics; current housing needs; and future housing needs due to population and employment growth and change; Assessment of Fair Housing ("AFH") consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015;
Analysis of governmental and nongovernmental constraints that affect the development, maintenance, and improvement of housing for all income groups and people with disabilities; Inventory of resources available to address the City's housing needs, including available land for housing, financial resources, and administrative capacity to manage housing programs; Evaluation of the accomplishments of current housing programs and specific programs to address the development, improvement, and conservation of housing to meet current and 66 future needs;
Documentation of public outreach for the Housing Element and the involvement of the public in shaping housing policies and programs for the 2021–2029 Housing Element; and Housing goals, policies, and programs to address the production, maintenance, and improvement of housing for all economic segments of the community commensurate with its needs.

The Housing Element encompasses all seven topical areas mentioned here, provides a brief synopsis of issues, and then follows with a complete set of goals, policies, and programs to be implemented over the planning period. The City also prepared a web format for ease of public distribution and use by policymakers and housing providers in implementing programs.

The Housing Element is prepared to be consistent with several policy and program plans mandated by the State. Most importantly, State law requires SCAG to determine the amount of housing needed within its six-county region and allocate a share of the regional housing need to each community. Housing Elements are required to incorporate the estimates of housing need reflected in regional housing plans. The Housing Element is also consistent with the City's Consolidated Plan.

STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT ("HCD") REVIEW — On December 13, 2021, HCD issued a letter (Attachment B) finding that while the draft Housing Element addressed many statuary requirements, revisions will be necessary to comply with State Housing Element law. HCD's review comments focused on the City's Assessment of Fair Housing, the Available Land Inventory, and various Housing Programs. The revised draft 2021–2029 Housing Element Update (Attachment G) is provided in a "Track Changes" version with the original text and additional and/or deleted text identified. State law requires the City Council to consider HCD's comments and make appropriate findings as part of the Housing Element adoption process.

Following City Council adoption, the Housing Element will be submitted to HCD for additional review. HCD has 90 days to complete its review of the adopted Housing Element.

AFFORDABLE HOUSING OVERLAY — The proposed General Plan Amendment also proposes to modify the Policy Plan Land Use Plan ("TOP Land Use Map LU-01") to establish an Affordable Housing Overlay. The purpose of the Affordable Housing Overlay is to facilitate housing opportunities within the City through the implementation of the Housing Element. The Affordable Housing Overlay will only apply to those properties identified in Attachment C, Exhibits A – Proposed AH, Affordable Housing Overlay and Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay; and those parcels listed in the Resolution of Approval for PGPA21-004, Attachment A: Housing Element Update, Appendix B: Housing Element Sites Inventory (Parcel List).

As shown in Attachment C, Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay , the Affordable Housing Overlay will apply to those identified parcels generally located: (1) south of Riverside Drive, (2) along East Holt Boulevard between the Cucamonga Creek Channel and Corona Avenue, and (3) areas designated as MU-2 at the northeast corner of West Holt Boulevard and Mountain Avenue. The Affordable Housing Overlay is being established to ensure that there are adequate sites at sufficient residential densities to meet the City's RHNA housing obligation throughout the planning period.
67 ZONE CHANGE (PZC21-002) — The proposed Zone Change will modify the Zoning Map to establish an Affordable Housing Overlay. The purpose of the Affordable Housing Overlay is to facilitate housing opportunities within the City through the implementation of the Housing Element. The Affordable Housing Overlay will only apply to those properties identified in (Attachment C) Exhibits A – Proposed AH, Affordable Housing Overlay and Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay; and those parcels listed in the Resolution of Approval for PGPA21-004, Attachment A: Housing Element Update, Appendix B: Housing Element Sites Inventory (Parcel List).

As shown in Attachment C, Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay , the Affordable Housing Overlay will apply to those identified parcels generally located: (1) south of Riverside Drive, (2) along East Holt Boulevard, between the Cucamonga Creek Channel and Corona Avenue, and (3) areas designated as MU-2 at the northeast corner of West Holt Boulevard and Mountain Avenue. The Affordable Housing Overlay is being established to ensure that there are adequate sites at sufficient residential densities to meet the City's RHNA housing obligation throughout the planning period.

DEVELOPMENT CODE AMENDMENT (PDCA21-001) — The Development Code (Ontario Municipal Code Title 9) provides the legislative framework for the implementation of The Ontario Plan, which states long-term principles, goals, and policies for guiding the growth and development of the City in a manner that achieves Ontario's vision, and promotes and protects the public health, safety, comfort, convenience, prosperity, and welfare of its citizens. Staff has initiated an addition to the Development Code that is necessary to establish provisions of the Development Code as described below. The proposed changes, as they would appear in the Development Code, are included as Attachment C, Exhibit D: Proposed Development Code Amendment of this staff report.

The proposed Development Code Amendment will modify Section 6.01.035, by adding Subparagraph C.6 to establish an AH (Affordable Housing) Overlay District. The purpose of the AH Overlay District standards is to facilitate housing opportunities within the City through the implementation of Housing Element. The AH Overlay District will only apply to those properties identified in Attachment C, Exhibit A – Proposed AH, Affordable Housing Overlay, Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay, Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay; and those parcels listed in the Resolution of Approval for PGPA21-004, Attachment A: Housing Element Update, Appendix B: Housing Element Sites Inventory (Parcel List).

Generally, the AH Overlay District will do three things:

It removes the specific plan requirement from sites where that would otherwise be required to develop a specific plan;
It satisfies new state requirements for sites that are part of the rezoning program by:

Allowing by-right development of residential projects if 20 percent of units are affordable to lower incomes.

Establishing a minimum density of 20 du/ac.

It raises the maximum density on MDR zoned sites from 25 to 30 du/ac, if 25 percent of units are affordable to lower incomes.

PLANNING COMMISSION REVIEW: On December 20, 2021, the Planning Commission conducted a 68 public hearing and voted (6-0) to recommend City Council approval of the Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140), the General Plan Amendment, File No. PGPA21-004, the Zone Change, File No. PZC21-002 and the Development Code Amendment File No. PDCA21-001.

ENVIRONMENTAL REVIEW: The environmental impacts of this project were analyzed in the Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140), certified by the City Council on January 27, 2010, and included as Attachment E to this report. This Application introduces no new significant environmental impacts. All previously adopted mitigation measures shall be a condition of project approval, as applicable, and are incorporated herein by this reference.
69 Exhibit A – Proposed AH, Affordable Housing Overlay Locations 70 Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay 71 Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay 72 Exhibit D – Proposed Development Code Amendment
Draft DCA Section 6.01.035 (6. AH (Affordable Housing) Overlay District)
(Document follows this page)
73 74
75 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
Scott Murphy, Executive Director
Community Development Agency
City of Ontario
303 East B Street
Ontario, CA 91764
Dear Scott Murphy:

RE: City of Ontario’s 6th Cycle (2021-2029) Draft Housing Element Thank you for submitting the City of Ontario’s (City) draft housing element received for review on October 14, 2021. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on December 10, 2021 with Thomas Grahn, Senior Planner; Kimberly Ruddins, Sustainability Program Manager; and your consultants Jennifer Gastelum, Halley Grundy, Nicole West, and Allison Holmstedt.

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code.

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

As a reminder, the City’s 6th cycle housing element was due on October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).

December 13, 2021
76 Scott Murphy, Executive Director

Page 2 ends

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.

Pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory.

Please see HCD’s housing element webpage at https://www.hcd.ca.gov/communitydevelopment/housing-element/index.shtml for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance. Upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to [email protected].

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf and
http://opr.ca.gov/docs/Final_6.26.15.pdf.

HCD appreciates the hard work and dedication the City’s housing element team provided during the review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Reid Miller, of our staff, at [email protected]
Sincerely,
Paul McDougall
Enclosure
Senior Program Manager
77 City of Ontario’s 6th Cycle Draft Housing Element Page 3 December 13, 2021

APPENDIX

CITY OF ONTARIO
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-element-memos.shtml.

Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
A thorough program-by-program review is necessary to evaluate City's performance in addressing housing goals. As part of this analysis, the element should describe the actual results of the prior element’s programs, compare those results to the objectives projected or planned, and based on an evaluation of any differences between what was planned versus achieved, provide a description of how the objectives and programs of the updated element incorporate changes resulting from the evaluation. The element should be revised as follows:

Program 16 (Land Monitoring Program to Meet RHNA): The element should provide a date for when the rezones for the 5th cycle was completed, include information on how many acres were ultimately rezoned and at what densities. The analysis should also specify whether the rezones met all the lower-income RHNA shortfall requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i).

Program 17 (Incentives): Analysis on this program should include whether and what types of incentives were offered to housing projects in the 5th cycle.

Program 18 (Land Acquisition): The element should quantify how many units were developed from the sale of the lands as a part of this program, and at what affordability level.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) 78 City of Ontario’s 6th Cycle Draft Housing Element Page 4 December 13, 2021
Regional Patterns and Trends: The element generally describes local patterns and trends but must also analyze Ontario relative to the rest of the region regarding integration and segregation, racially and ethnically concentrated areas of poverty, disparities in access to opportunity and disproportionate housing needs, including displacement risks.

Disproportionate Housing Needs including Displacement Risks: The element includes some local data on cost burdened households (overpayment) and overcrowding (pp.

H-84 to H-85). However, the element must evaluate patterns and trends for both within the City and in comparison to the region for overpayment, overcrowding, and substandard housing and must include data and evaluation on persons experiencing homelessness related to protected characteristics and access to opportunities. In addition, the element briefly and generically mentions displacement but must still provide data, analysis, and conclusions.

Contributing Factors: The element includes the contributing factors from the 2020 analysis of impediments to fair housing choice (AI). However, the element must prioritize contributing factors and relate factors to the analysis found in Affirmatively Furthering Fair Housing (AFFH) analysis.

Sites Inventory: The element discusses the proposed number of sites and units relative to income, but it must also address other components of the assessment of fair housing (e.g., R/ECAP, Disparities in Access to Opportunity, Disproportionate Housing Need, including Displacement). The accompanying analysis should address how the sites are identified to improve conditions (or if sites exacerbate conditions, how a program can address the impact) and whether the sites are isolated by income group.

For example, the element includes sites within RECAP areas of the City. The element should talk about efforts to improve conditions in these areas. In addition, much of the lower-income need is concentrated the southwest undeveloped portions of the City.

The element should discuss whether this strategy potentially isolates a significant number of the housing need for lower-income households and include actions as appropriate, such as additional zoning for a variety of housing choices.

Goals, Priorities, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection.

For further information about AFFH requirements, please refer to HCD’s https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27- 2021.pdf#page=7.
79 City of Ontario’s 6th Cycle Draft Housing Element Page 5 December 13, 2021

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Employment Trends: While the City does provide some analysis of employment trends on Page H-6, it could also provide an analysis of the largest employers in the City as well as the City’s unemployment rate.

3. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Conditions: The element identifies the age of the housing stock (p. H-47).

However, it must include analysis of the condition of the existing housing stock and estimate the number of units in need of rehabilitation and replacement. The analysis states a recent windshield survey was completed but could also discuss the results of that survey and identify how many units were found to be in need of rehabilitation and replacement.

4. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
The City has a regional housing need allocation (RHNA) of 20,854 housing units, of which 8,926 are for lower-income households. To address this need, the element relies on both vacant and nonvacant sites, including sites in Specific Plan Areas. To demonstrate the adequacy of these sites and strategies to accommodate the City’s RHNA, the element must include complete analyses:

Progress in Meeting the RHNA: The City’s RHNA may be reduced by the number of new units built since July 1, 2021. The element indicates (p. H-176) 1,650 units toward the RHNA, but to count these units toward the City’s 6th cycle RHNA allocation, the element must also demonstrate their availability in the planning period.

Realistic Capacity: The element (pp. H-177 to H-205) provides assumptions to calculate residential capacity on identified sites and includes a few examples of recent developments and adjusts assumptions in specific plan areas based on infrastructure availability. However, the element should demonstrate what specific trends, factors, and other evidence led to the assumptions. The estimate of the number of units for each site must be adjusted as necessary, based on the land-use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities. 80 City of Ontario’s 6th Cycle Draft Housing Element Page 6 December 13, 2021
In addition, the element appears to assume residential development on sites with zoning that allows 100 percent non-residential uses, but to support this assumption, the element must analyze the likelihood of residential development in zoning where 100 percent nonresidential uses are allowed. The analysis should be based on factors such as development trends including nonresidential, performance standards requiring residential uses or other relevant factors such as enhanced policies and programs.

Suitability of Nonvacant Sites: The element identifies nonvacant sites to accommodate the regional housing need and provides minimal information on how the existing uses would not impede residential development. However, to demonstrate the potential for additional development on these sites, the element should include a discussion of trends and market conditions to support these assumptions. The element can summarize past experiences converting existing uses to higher density residential development and include current information on development trends and market conditions for redevelopment and relate those trends to the sites identified. In addition, the element should include information to support development at Ontario Hills Mall including identification of any impediments in developing the parking area due to any lease or parking agreements.

Small and Large Sites: Sites larger than ten acres in size or smaller than a half-acre in size is deemed inadequate to accommodate housing for lower-income households unless it is demonstrated, with sufficient evidence, that sites are suitable to accommodate housing for lower-income households. While the element included a few examples about developments with lot consolidation (p. H-180) and states there is recent examples of large greenfield sites developing (p H-201), it must also provide specific examples with the densities, affordability and, if applicable, circumstances leading to development. The element should relate these examples to the sites identified to accommodate the RHNA for lower-income households to demonstrate that these sites can adequately accommodate the City’s lower-income housing need.

Based on a complete analysis, the City should add or revise programs to include incentives for encouraging development on these sites.

Environmental Constraints: While the element generally describes a few environmental conditions within the City (p. H-192), it must relate those conditions to identified sites and describe any other known environmental or other constraints that could impact housing development on identified sites in the planning period. For example, the element mentions that liquefaction poses a potential environmental barrier to residential development, but it does not specify which sites (if any) in the sites inventory are affected by this constraint.

Zoning For a Variety of Housing Types (Accessory Dwelling Units (ADU)): After a cursory review of the City’s ordinance, HCD discovered provisions which were not consistent with State ADU Law. Specifically, the ordinance seems to limit the development of ADU to only sites with an “existing” primary dwelling unit. However, pursuant to Government Code section 65852.2, local agencies must allow ADUs to be created on lots zoned for single-family residences with a proposed or existing singlefamily residence on the lot. As a result, the element should add a program to update the City’s ADU ordinance to comply with state law. HCD will provide additional 81 City of Ontario’s 6th Cycle Draft Housing Element Page 7 December 13, 2021
information on provisions to address under separate cover. For more information, please consult HCD’s ADU Guidebook, published in December 2020, which provides detailed information on new state requirements surrounding ADU development.

5. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Processing and Permit Procedures: While the element includes information about processing times, it should also describe the procedures for typical single family and multifamily development. The analysis should address the approval body, the number of public hearings if any, approval findings and any other relevant information. The analysis should address impacts on housing cost, supply, timing, and approval certainty. For example, the element should identify and analyze approval findings for impacts on approval certainty, the presence of processes or guidelines to promote certainty and add or modify programs as appropriate. In particular, the element should analyze the role of the Development Advisory Board (DAB) which seems to duplicate efforts of planning staff and decision-making responsibilities of the planning commission. The element should describe how this process impacts timeframes for application approval and improves or reduces certainty in the process.

Codes and their Enforcement: The element must describe and analyze which building code (e.g., 2019) is enforced, any local amendments to the building code and their enforcement for impacts on housing supply and affordability. For additional information and a sample analysis, see the Building Blocks at http://www.hcd.ca.gov/communitydevelopment/building-blocks/constraints/codes-and-enforcement-on-offsiteimprovement-standards.shtml. “Community Oriented Policing” Program: In Program 7, the City states that it will continue to implement “Community Oriented Policing” which includes a Crime-Free Multifamily Housing Program. This Program could be potentially problematic for a number of reasons, and the City should provide further analysis on whether this program could constitute a constraint on providing housing for all income levels throughout the community. Such analysis should address:
• how the program is enforced or implemented; what entity is charged with implementation and enforcement (e.g., police, code enforcement); • whether the program applies to both renters and homeowners; • whether the program is enforced against federally subsidized properties, or against housing that serves specific populations (e.g., people re-entering from contact with the criminal legal system or housing serving people with mental health or developmental disabilities);
• whether the program requires or encourages property owners to conduct a criminal background check; and
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• what conduct is covered by the policy, and what locations of alleged criminal activity the ordinance covers (e.g., on the premises or off premises)

6. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).)
Approval Time and Requests Lesser Densities: The element must include analysis of requests to develop housing at densities below those identified, the length of time between receiving approval for a housing development and submittal of an application for building permits that potentially. The element must address any hinderance on the development of housing and include programs as appropriate.

7. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female-heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
The element indicates on Page H-23 that there are 505 farmworkers employed in fulltime farming occupations in Ontario. However, farmworkers from the broader area and those employed seasonally may also have housing needs, including within the City’s boundaries. As a result, the element should acknowledge the housing needs of permanent and seasonal farmworkers at a county-level (e.g., using USDA county-level farmworker data) and include programs as appropriate.

8. Analyze existing assisted housing developments that are eligible to change to non-lowincome housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).)
The element identifies properties at-risk of conversion to market-rate during the planning period (p. H-56). While the element includes most of the required analysis, it should also identify potential sources of funding to ensure the affordable units identified do not convert to market-rate.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element 83 City of Ontario’s 6th Cycle Draft Housing Element Page 9 December 13, 2021
through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines, including, but not limited to, Program 4 (CARES), Program 5 (Neighborhood Plans), and Program 11 (Ontario Ranch). In addition, Program 6 should include quantifiable metrics to measure the effectiveness of the Neighborhood Stabilization program

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, singleroom occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B4, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

In addition, as mentioned in the element, buildout of the specific plans in the southwest area requires infrastructure improvements that will be provided throughout the planning period. The capacity assumptions for these areas are directly tied to assumptions of when these improvements will be provided. The element should include a program monitoring these provisions to ensure that infrastructure is being provided pursuant to these assumptions so that housing can be developed early in the planning period. The program should include provisions to amend the sites inventory or rezone additional sites should infrastructure not be provided pursuant to the timeframes stated.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings B5 and B6, the element requires a complete analysis of potential governmental and non-governmental constraints. Depending upon the results of that 84 City of Ontario’s 6th Cycle Draft Housing Element Page 10 December 13, 2021
analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection.

5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, “accessory dwelling units” has the same meaning as “accessory dwelling unit” as defined in paragraph (4) of subdivision (i) of Section 65852.2. (Gov. Code, § 65583, subd. (c)(7).)
Programs must be added or expanded to include incentives to promote the creation and affordability of ADUs. Examples include exploring and pursuing funding, modifying development standards and reducing fees beyond state law, increasing awareness, pre-approved plans and homeowner/applicant assistance tools. Additionally, as noted in Finding B5, the element should include a timeline for updating the City’s ADU ordinance to bring it into compliance with state law.

D. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).) While the element provides extensive information on the public participation strategy for the City’s 2020-2024 Consolidated Plan, including the Public Outreach and Community Needs Survey, it does not indicate what type of public participation strategy was employed specifically on the housing element update. While there are many components of the consolidated plan and stakeholder consultation process that are applicable to the housing element update, it does not address all of the public outreach requirements under 85 City of Ontario’s 6th Cycle Draft Housing Element Page 11 December 13, 2021
state housing element law, such as how public outreach and comment impacted the composition of the sites inventory, the formulation of necessary housing element programs, and the uncovering of potential governmental and nongovernment constraints to residential development. This outreach process should be outlined in greater specificity and detail in the adopted element.

In addition, HCD understands the City made the element available to the public concurrent with its submittal to HCD. By not providing an opportunity for the public to review and comment on a draft of the element in advance of submission, the City has not yet complied with statutory mandates to make a diligent effort to encourage the public participation in the development of the element and it reduces HCD’s ability to consider public comments in its review. The availability of the document to the public and opportunity for public comment prior to submittal to HCD is essential to the public process and HCD’s review. The City must proactively make future revisions available to the public, including any commenters, prior to submitting any revisions to HCD and diligently consider and address comments, including revising the document where appropriate.

HCD’s future review will consider the extent to which the revised element documents how the City solicited, considered, and addressed public comments in the element. The City’s consideration of public comments must not be limited by HCD’s findings in this review letter.
86 Case Planner: Thomas Grahn Hearing Body Date Decision Action Planning Director
Approval:

DAB N/A N/A N/A
PC 12-20-21 Recommend
Submittal Date: CC 2-15-22 Final
FILE NOS: PGPA21-004, PZC-21-002, and PDCA21-001
SUBJECT: A General Plan Amendment (File No. PGPA21-004) for the Housing Element update to the Policy Plan (General Plan) component of The Ontario Plan, addressing State mandates and the 6th Cycle Regional Housing Needs Allocation (RHNA) and to modify the Policy Plan Land Use Plan (Exhibit LU-01) to establish the following: 1) a Zone Change (File No. PZC21-002) to modify the Zoning Map to establish an AH (Affordable Housing) zoning district; 2) create an Affordable Housing Overlay; and 3) a Development Code Amendment (File No. PDCA21-001) revising section 6.01.035 for the purpose of adding provisions to establish an AH (Affordable Housing) Overlay District. Staff has prepared an Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140), certified by City Council on January 27, 2010. This application introduces no new significant environmental impacts. The proposed project is located within the Airport Influence Area of Ontario International Airport and was evaluated and found to be consistent with the policies and criteria of the Ontario International Airport Land Use Compatibility Plan (ALUCP); City Initiated. City Council action is required.

Applicant: City of Ontario
RECOMMENDED ACTION: That the Planning Commission take the following actions:
(1) Adopt a resolution recommending the City Council approve the use of an Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140);
(2) Adopt a resolution recommending the City Council approve the General Plan Amendment, File No. PGPA21-004, pursuant to the facts and reasons contained in the staff report and attached resolution;
(3) Adopt a resolution recommending the City Council approve the Zone Change, File No. PZC21-002, pursuant to the facts and reasons contained in the staff report and attached resolution; and
303 East B Street, Ontario, California 91764 Phone: 909.395.2036 / Fax: 909.395.2420

PLANNING COMMISSION

STAFF REPORT
December 20, 2021
Approval
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(4) Adopt a resolution recommending the City Council approve the Development Code Amendment, File No. PDCA21-001, pursuant to the facts and reasons contained in the staff report and attached resolution.

PROJECT ANALYSIS: The proposed project is an update to the Housing Element and includes related applications to establish and implement an Affordable Housing Overlay to support the necessary residential densities to achieve the City's Regional Housing Needs Assessment (“RHNA”).
(1) General Plan Amendment (File No. PGPA21-004) — This General Plan Amendment includes the Housing Element update to the Policy Plan (general plan) component of The Ontario Plan (“TOP”), addressing State mandates, the 6th Cycle RHNA, and a modification to the Policy Plan Land Use Plan (Exhibit LU-01) to establish an Affordable Housing Overlay.
(a) Housing Element Update — The Housing Element is one of the seven mandated elements of the general plan, which each city and county in the State is required to periodically adopt (generally every eight years). The Housing Element is required to adequately plan to meet the existing and projected housing needs of all economic segments of the community. This Housing Element Cycle (6th Cycle) covers the RHNA period from October 15, 2021 through October 15, 2029. The Housing Element is the only element of the general plan reviewed and certified by the State to ensure compliance with State law.

The City of Ontario (“City”) has initiated a process to update its Housing Element, one of the elements of the Policy Plan. The proposed 2021–2029 Housing Element Update constitutes a "project" pursuant to CEQA, and therefore, the City prepared an Addendum to The Ontario Plan Environmental Impact Report (“TOP EIR”). (i) Public Participation — The California Government Code requires that local governments make a diligent effort to solicit public participation from all economic segments of the community in the development of the draft Housing Element.

The following provides a general timeline describing major milestones in preparing Ontario's draft 2021-2029 Housing Element Update:
 June 14, 2021 – Property Owner Open House – Staff hosted a virtual open house to provide an overview of the TOP 2050 Project and land use designation changes on specific properties as part of the City's housing strategy to fulfill the 6th RHNA Cycle site inventory obligation.
 June 28, 2021 – Community Workshop #1 – Staff hosted a virtual workshop to present the TOP 2050 update, including the City's housing strategy to receive comments, and answer questions from the public.
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 July 29, 2021 – Community Workshop #2 – Staff hosted a virtual workshop to facilitate a guided discussion of the environmental justice, community health, and resiliency policies, and share the City's preferred land use plan and housing strategy. The intent of Community Workshop #2 was to further inform the community of policy updates and gather feedback regarding the preferred land use plan.
 August 31, 2021 – In compliance with Senate Bill 18 notification requirements (Tribal Consultation), the City mailed a separate project notice to 16 local tribes identified by the Native American Heritage Commission (NAHC). No consultation requests were received during the requisite 90-day response period.  October 14, 2021 – City staff posted the Ontario Housing Element 2021-2029 - Public Review Draft on Ontarioplan.org/TOP2050 and submitted the draft to California Department of Housing and Community Development (“HCD”) for a 60- day review.
(ii) Regional Housing Needs Assessment (RHNA) — The Southern California Association of Governments (“SCAG”) is responsible for oversight of the RHNA process for Southern California, which includes Ontario. For the 2021–2029 RHNA planning period, the City has been allocated 20,854 housing units to accommodate the estimated growth need at various income levels. As required by California law, the Housing Element must identify the City's ability to accommodate this estimated growth through available sites and appropriate zoning. Ontario's 6th RHNA Cycle allocation includes the following:

City of Ontario 6th Cycle RHNA Allocation by Income Category Income Category
(Percent of Annual Mean Income) RHNA Allocation
Very Low (31 to 50) 5,640
Low (51 to 80) 3,286
Moderate (81 to 120) 3,329
Above Moderate (121 or more) 8,599
Total 20,854
Source: SCAG 2021
The proposed 2021–2029 Housing Element must demonstrate the City's ability to accommodate the RHNA housing allocation either through production or the availability of properly zoned land that can accommodate additional growth. If adequate sites cannot be identified in the existing zoning, the City is required to rezone sites that can accommodate the remaining need at a minimum density of 30 dwelling units per acre, which is the default density set by HCD. The City is not required to build residential units in order to meet its RHNA allocation, only to identify potential sites and create the framework allowing the market the opportunity to develop these units. 89 Planning Commission Staff Report
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The proposed 2021–2029 Housing Element Update explores opportunities to accommodate the RHNA through current production, entitled units, and the availability of properly zoned land that can accommodate additional growth. The proposed Housing Element Update will further identify and address potential and actual governmental and non-governmental constraints on the development of housing for all income levels.
(iii) State Mandates Included Within the Housing Element Update — The following provides a brief summary of recently adopted State laws that effect and were included in the 2021-2029 Housing Element Update. Their overarching premise is to increase the housing supply within the State by permitting more housing in more places and in greater volume.
 SB 330 Housing Crisis Act: Prohibits the downzoning of any residential property without a corresponding increase in another location. Reduces the length of the entitlement process and provides greater certainty on development standards and fees. The offset upzoning must take place concurrently and provide no net loss in residential capacity.
 SB 35 Streamlined Approval for Housing Projects: Expedites the construction of affordable housing in places were the permitting or construction of housing is slower than compared to the RHNA. If housing production of above moderate RHNA is below the annual target, projects with 10 percent low-income housing are eligible for streamlining. If housing production of low-income RHNA is below the annual target, projects with 50 percent low-income housing are eligible for streamlining.
 SB 166 No Net Loss Zoning: Cities must build or maintain capacity for 100 percent of their RHNA requirement throughout the entire planning period.  AB 1397 Non-Vacant Sites: Provides for increased scrutiny on the development potential for underutilized sites included in the RHNA land inventory.  AB 72 Increased HCD Enforcement: HCD may revoke certification and report any violations to the Attorney General on a jurisdictions failure to comply.  AB 686 Housing Discrimination (Affirmatively Furthering Fair Housing (“AFFH”)):

Jurisdictions must facilitate deliberate action to address, combat, and relieve disparities resulting from past patterns of segregation to foster more inclusive communities.
 AB 167 Housing Accountability Act: Prohibits reducing density, disapproving, or conditioning approvals of a lower/moderate income housing development project or emergency shelter if they comply with zoning and objective development standards.
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(iv) 2021-2029 Ontario Housing Element Content — California Housing Element law prescribes the scope and content of the Housing Element. Pursuant to Section 65583 of the California Government Code, the Housing Element must contain a variety of detailed analyses, listed below.
 Analysis of demographic, social, and housing characteristics; current housing needs; and future housing needs due to population and employment growth and change.
 Assessment of Fair Housing (“AFH”) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015.
 Analysis of governmental and nongovernmental constraints that affect the development, maintenance, and improvement of housing for all income groups and people with disabilities.
 Inventory of resources available to address the City's housing needs, including available land for housing, financial resources, and administrative capacity to manage housing programs.
 Evaluation of the accomplishments of current housing programs and specific programs to address the development, improvement, and conservation of housing to meet current and future needs.
 Documentation of public outreach for the Housing Element and the involvement of the public in shaping housing policies and programs for the 2021–2029 Housing Element.
 Housing goals, policies, and programs to address the production, maintenance, and improvement of housing for all economic segments of the community commensurate with its needs.
 The Housing Element encompasses all seven topical areas mentioned here, provides a brief synopsis of issues, and then follows with a complete set of goals, policies, and programs to be implemented over the planning period. The City also prepared a web format for ease of public distribution and use by policymakers and housing providers in implementing programs.

The Housing Element is prepared to be consistent with several policy and program plans mandated by the State. Most importantly, State law requires SCAG to determine the amount of housing needed within its six-county region and allocate a share of the regional housing need to each community. Housing Elements are required to incorporate 91 Planning Commission Staff Report
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the estimates of housing need reflected in regional housing plans. The Housing Element is also consistent with the City's Consolidated Plan.
(v) HCD Review — The draft 2021-2029 Housing Element Update was submitted to HCD on October 14, 2021. HCD has 60-days to complete their review of a draft housing element and 90-days to review an adopted housing element. Comments from HCD on the draft Housing Element Update are expected to be received by December 13, 2021, which is after the date of this report being prepared; therefore, staff will provide an oral report on the status of HCD's review comments at the Planning Commission meeting.
(b) Affordable Housing Overlay — The proposed General Plan Amendment also proposes to modify the Policy Plan Land Use Plan (LU-01) to establish an Affordable Housing Overlay. The purpose of the Affordable Housing Overlay is to facilitate housing opportunities within the City through the implementation of the Housing Element. The Affordable Housing Overlay will only apply to those properties identified in Exhibits A – Proposed AH, Affordable Housing Overlay and Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay; and those parcels listed in the Resolution of Approval for PGPA21-004, Attachment A: Housing Element Update, Appendix B: Housing Element Sites Inventory (Parcel List).

As shown in Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay, the Affordable Housing Overlay will apply to those identified parcels generally located: (1) south of Riverside Drive, (2) along East Holt Boulevard between the Cucamonga Creek Channel and Corona Avenue, and (3) areas designated as MU-2 at the northeast corner of West Holt Boulevard and Mountain Avenue. As discussed in the RHNA analysis above (see Section (1)(a)(II)), the Affordable Housing Overlay is being established to ensure that there are adequate sites at sufficient residential densities to meet the City's RHNA housing obligation throughout the planning period.
(2) Zone Change (PZC-21-002) — The proposed Zone Change will modify the Zoning Map to establish an Affordable Housing Overlay. The purpose of the Affordable Housing Overlay is to facilitate housing opportunities within the City through the implementation of Housing Element. The Affordable Housing Overlay will only apply to those properties identified in Exhibits A – Proposed AH, Affordable Housing Overlay and Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay; and those parcels listed in the Resolution of Approval for PGPA21-004, Attachment A: Housing Element Update, Appendix B: Housing Element Sites Inventory (Parcel List).

As shown in Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay, the Affordable Housing Overlay will apply to those identified parcels generally located: (1) south of Riverside Drive, (2) along East Holt Boulevard, between the Cucamonga Creek Channel and Corona Avenue, and (3) areas designated as MU-2 at the northeast corner of West Holt Boulevard and Mountain Avenue. As discussed in the RHNA analysis above (see Section (1)(a)(II)), the Affordable Housing Overlay is being established to ensure that 92 Planning Commission Staff Report
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there are adequate sites at sufficient residential densities to meet the City's RHNA housing obligation throughout the planning period.
(3) Development Code Amendment (PDCA21-001) — The Development Code (Ontario Municipal Code Title 9) provides the legislative framework for the implementation of The Ontario Plan, which states long-term principles, goals, and policies for guiding the growth and development of the City in a manner that achieves Ontario's vision, and promotes and protects the public health, safety, comfort, convenience, prosperity, and welfare of its citizens. Staff has initiated an alteration to the Development Code that is necessary to establish provisions of the Development Code, which are described below. The proposed changes, as they would appear in the Development Code, are included as Exhibit D (Proposed Development Code Amendment) of this staff report.

The proposed Development Code Amendment will modify Section 6.01.035, by adding Subparagraph C.6 to establish an AH (Affordable Housing) Overlay District. The purpose of the AH (Affordable Housing) Overlay District standards is to facilitate housing opportunities within the City through the implementation of Housing Element. The AH (Affordable Housing) Overlay District will only apply to those properties identified in Exhibit A – Proposed AH, Affordable Housing Overlay, Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay, Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay; and those parcels listed in the Resolution of Approval for PGPA21-004, Attachment A: Housing Element Update, Appendix B: Housing Element Sites Inventory (Parcel List).

Generally, the AH (Affordable Housing) Overlay District will do three things:
(a) It removes the specific plan requirement from sites where there is no existing specific plan.
(b) It satisfies new state requirements for sites that are part of the rezoning program by:
(i) Allowing by-right development of residential projects if 20 percent of units are affordable to lower incomes.
(ii) Establishing a minimum density of 20 du/ac.
(c) It raises the maximum density on MDR zoned sites from 25 to 30 du/ac, if 25 percent of units are affordable to lower incomes.

COMPLIANCE WITH THE ONTARIO PLAN: The proposed project is consistent with the principles, goals and policies contained within the Vision, Governance, Policy Plan (General Plan), and City Council Priorities components of TOP. More specifically, the goals and policies of TOP that are furthered by the proposed project are as follows:
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(1) City Council Goals.
 Invest in the Growth and Evolution of the City's Economy.  Maintain the Current High Level of Public Safety.
 Operate in a Businesslike Manner.
 Pursue City's Goals and Objectives by Working with Other Governmental Agencies.
 Focus Resources in Ontario's Commercial and Residential Neighborhoods.  Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities).
 Encourage, Provide or Support Enhanced Recreational, Educational, Cultural and Healthy City Programs, Policies and Activities.
 Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in the New Model Colony.
(2) Vision.

Distinctive Development:
 Commercial and Residential Development.
 Development quality that is broadly recognized as distinctive and not exclusively tied to the general suburban character typical of much of Southern California. (3) Governance.

Decision Making:
 Goal G1: Sustained decision-making that consistently moves Ontario towards its Vision by using TOP as a framework for assessing choices.  G1-2 Long-term Benefit. We require decisions to demonstrate and document how they add value to the community and support the Ontario Vision. (4) Policy Plan (General Plan).

Land Use Element:
 Goal LU1: A community that has a spectrum of housing types and price ranges that match the jobs in the City and that make it possible for people to live and work in Ontario and maintain a quality of life.
 LU1-1 Strategic Growth. We concentrate growth in strategic locations that help create place and identity, maximize available and planned infrastructure, and foster the development of transit.
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 LU1-6 Complete Community. We incorporate a variety of land uses and building types in our land use planning efforts that result in a complete community where residents at all stages of life, employers, workers, and visitors have a wide spectrum of choices of where they can live, work, shop and recreate within Ontario. (Refer to Complete Community Section of Community Economics Element).  Goal LU2: Compatibility between a wide range of uses.

Housing Element:
 Goal H2: Diversity of types of quality housing that are affordable to a range of household income levels, accommodate changing demographics, and support and reinforce the economic sustainability of Ontario.
 H2-4 New Model Colony. We support a premier lifestyle community in the Ontario Ranch distinguished by diverse housing, highest design quality, and cohesive and highly amenitized neighborhoods.
 H2-5 Housing Design. We require architectural excellence through adherence to City design guidelines, thoughtful site planning, environmentally sustainable practices, and other best practices.
 Goal H5: A full range of housing types and community services that meet the special housing needs for all individuals and families in Ontario, regardless of income level, age, or other status.
 H5-2 Family Housing. We support the development of larger rental apartments that are appropriate for families with children, including, as feasible, the provision of services, recreation, and other amenities.

Community Economics Element:
 Goal CE1: A complete community that provides for all incomes and stages of life.
 CE1-6 Diversity of Housing. We collaborate with residents, housing providers and the development community to provide housing opportunities for every stage of life; we plan for a variety of housing types and price points to support our workforce, attract business, and foster a balanced community.
 Goal CE2: A City of distinctive neighborhoods, districts, and corridors, where people choose to be.
 CE2-1 Development Projects. We require new development and redevelopment to create unique, high-quality places that add value to the community. 95 Planning Commission Staff Report
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 CE2-2 Development Review. We require those proposing new development and redevelopment to demonstrate how their projects will create appropriately unique, functional, and sustainable places that will compete well with their competition within the region.
 CE2-4 Protection of Investment. We require that new development and redevelopment protect existing investment by providing architecture and urban design of equal or greater quality.
 CE2-5 Private Maintenance. We require adequate maintenance, upkeep, and investment in private property because proper maintenance on private property protects property values.

Safety Element:
 Goal S1: Minimized risk of injury, loss of life, property damage and economic and social disruption caused by earthquake-induced and other geologic hazards.  S1-1 Implementation of Regulations and Standards. We require that all new habitable structures be designed in accordance with the most recent California Building Code adopted by the City, including provisions regarding lateral forces and grading.

Community Design Element:
 Goal CD1: A dynamic, progressive city containing distinct neighborhoods and commercial districts that foster a positive sense of identity and belonging among residents, visitors, and businesses.
 CD1-1 City Identity. We take actions that are consistent with the City being a leading urban center in Southern California while recognizing the diverse character of our existing viable neighborhoods.
 CD1-2 Growth Areas. We require development in growth areas to be distinctive and unique places within which there are cohesive design themes.  CD1-3 Neighborhood Improvement. We require viable existing residential and non-residential neighborhoods to be preserved, protected, and enhanced in accordance with our land use policies.
 Goal CD2: A high level of design quality resulting in public spaces, streetscapes, and developments that are attractive, safe, functional and distinct.  CD2-1 Quality Architecture. We encourage all development projects to convey visual interest and character through:
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• Building volume, massing, and height to provide appropriate scale and proportion;
• A true architectural style which is carried out in plan, section and elevation through all aspects of the building and site design and appropriate for its setting; and
• Exterior building materials that are visually interesting, high quality, durable, and appropriate for the architectural style.
 CD2-2 Neighborhood Design. We create distinct residential neighborhoods that are functional, have a sense of community, emphasize livability and social interaction, and are uniquely identifiable places through such elements as:
• A pattern of smaller, walkable blocks that promote access, activity and safety;
• Variable setbacks and parcel sizes to accommodate a diversity of housing types;
• Traffic calming measures to slow traffic and promote walkability while maintaining acceptable fire protection and traffic flows; • Floor plans that encourage views onto the street and de-emphasize the visual and physical dominance of garages (introducing the front porch as the "outdoor living room"), as appropriate; and
• Landscaped parkways, with sidewalks separated from the curb.  CD2-7 Sustainability. We collaborate with the development community to design and build neighborhoods, streetscapes, sites, outdoor spaces, landscaping and buildings to reduce energy demand through solar orientation, maximum use of natural daylight, passive solar and natural ventilation, building form, mechanical and structural systems, building materials and construction techniques.  CD2-8 Safe Design. We incorporate defensible space design into new and existing developments to ensure the maximum safe travel and visibility on pathways, corridors, and open space and at building entrances and parking areas by avoiding physically and visually isolated spaces, maintenance of visibility and accessibility, and use of lighting.
 CD2-9 Landscape Design. We encourage durable landscaping materials and designs that enhance the aesthetics of structures, create, and define public and private spaces, and provide shade and environmental benefits.  CD2-13 Entitlement Process. We work collaboratively with all stakeholders to ensure a high degree of certainty in the efficient review and timely processing of all development plans and permits.

HOUSING ELEMENT COMPLIANCE: The proposed 2021-2029 Housing Element Update is mandated by Sections 65580 to 65589 of the California Government Code. State Housing 97 Planning Commission Staff Report
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Element law requires that each city and county identify and analyze existing and projected housing needs within their jurisdiction and prepare goals, policies, and programs to further the development, improvement, and preservation of housing for all economic segments of their community commensurate with local housing needs.

AIRPORT LAND USE COMPATIBILITY PLAN (ALUCP) COMPLIANCE: The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan (“ALUCP”), establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area, as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. The proposed project is located within the Airport Influence Area of Ontario International Airport and was evaluated and found to be consistent with the policies and criteria of the ALUCP. Any special conditions of approval associated with uses in close proximity to the airport are included in the conditions of approval provided with the attached Resolution.

ENVIRONMENTAL REVIEW: The environmental impacts of this project were analyzed in an Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140), certified by the City Council on January 27, 2010, in conjunction with File No. PGPA06-001. This Application introduces no new significant environmental impacts.

All previously adopted mitigation measures shall be a condition of project approval, as applicable, and are incorporated herein by this reference. 98 Planning Commission Staff Report
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Exhibit A – Proposed AH, Affordable Housing Overlay Locations 99 Planning Commission Staff Report
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Exhibit B – Revised LU-01 with AH, Affordable Housing Overlay 100
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Exhibit C – Revised Zoning Map with AH, Affordable Housing Overlay 101
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Exhibit D – Proposed Development Code Amendment
Draft DCA Section 6.01.035 (6. AH (Affordable Housing) Overlay District) (Document follows this page)
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104
RESOLUTION NO. PC21-093

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

ONTARIO, CALIFORNIA, RECOMMENDING THE CITY COUNCIL

ADOPT AN ADDENDUM TO THE ONTARIO PLAN ENVIRONMENTAL
IMPACT REPORT FOR FILE NOS. PGPA21-004, PZC-21-002, AND PDCA21-001, FOR WHICH AN INITIAL STUDY WAS PREPARED, IN

ACCORDANCE WITH THE REQUIREMENTS OF THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT, AS AMENDED, AND MAKING
FINDINGS IN SUPPORT THEREOF.

WHEREAS, CITY OF ONTARIO (hereinafter referred to as "Applicant") has filed an Application for the approval of File Nos. PGPA21-004, General Plan Amendment, PZC-21-002, Zone Change, and PDCA21-001, Development Code Amendment, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and
WHEREAS, THE ONTARIO PLAN ("TOP") Environmental Impact Report (State Clearinghouse No. 2008101140) was certified on January 27, 2010 (hereinafter referred to as "Certified EIR"), in which development and use of the Project site was discussed; and
WHEREAS, the Planning Director of the City of Ontario has prepared and approved for attachment to the certified Environmental Impact Report, an Addendum to the Certified EIR (hereinafter referred to as "EIR Addendum") in accordance with the requirements of the California Environmental Quality Act of 1970, together with State and local guidelines implementing said Act, all as amended to date (collectively referred to as "CEQA"); and
WHEREAS, the EIR Addendum concluded that implementation of the Project would not propose additional growth that was not evaluated under the 2010 Certified EIR or change the buildout evaluated under the Approved Project, and no substantial changes in circumstances under CEQA Guidelines Section 15162(a)(2) have occurred since the certification of the 2010 EIR that would indicate new significant impacts or substantially increase the severity of significant impacts previously identified and background environmental conditions have not significantly changed since the certification of the 2010 Certified EIR. Additionally, no information that was not known and could not have been known at the time of the 2010 Certified EIR preparation has been revealed that shows new or substantially greater significant impacts would result under Section 15162(a)(3).

There are no new or different mitigation measures that would substantially reduce one or more significant impacts of the Approved Project but that are not adopted. The Proposed Project does not identify or require adoption of any further mitigation measures beyond those provided in the Certified EIR; and
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WHEREAS, pursuant to State CEQA Guidelines Section 15164(a), a lead agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary to a project, but the preparation of a subsequent or supplemental EIR is not required; and
WHEREAS, the City determined that none of the conditions requiring preparation of a subsequent or supplemental EIR would occur from the Project, and that preparation of an Addendum to the Certified EIR was appropriate; and WHEREAS, the City of Ontario is the lead agency on the Project, and the Planning Commission is the recommending authority for the requested approval to construct and otherwise undertake the Project; and
WHEREAS, the Planning Commission has reviewed and considered the EIR Addendum for the Project, has concluded that none of the conditions requiring preparation of a subsequent of supplemental EIR have occurred, and intends to take actions on the Project in compliance with CEQA and state and local guidelines implementing CEQA; and
WHEREAS, the EIR Addendum for the Project is on file in the Planning Department, located at 303 East B Street, Ontario, CA 91764, are available for inspection by any interested person at that location and are, by this reference, incorporated into this Resolution as if fully set forth herein; and
WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the Planning Commission the responsibility and authority to review and make recommendation to City Council on the subject Application; and WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the Planning Commission of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the recommending body for the Project, the Planning Commission has reviewed and considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written 106
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and oral evidence presented to the Planning Commission, the Planning Commission finds as follows:
(1) The environmental impacts of this project were reviewed in conjunction with an Addendum to The Ontario Plan ("TOP") Environmental Impact Report— State Clearinghouse No. 2008101140 ("Certified EIR"), which was certified by the Ontario City Council on January 27, 2010, in conjunction with File Nos. PGPA21-004, PZC-21-002, and PDCA21-001; and
(2) The EIR Addendum and administrative record have been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and
(3) The City's "Guidelines for the Implementation of the California Environmental Quality Act (CEQA)" provide for the use of a single environmental assessment in situations where the impacts of subsequent projects are adequately analyzed. This Application introduces no new significant environmental impacts; and (4) The EIR Addendum contains a complete and accurate reporting of the environmental impacts associated with the Project, and reflects the independent judgment of the Planning Commission; and
(5) There is no substantial evidence in the administrative record supporting a fair argument that the project may result in significant environmental impacts; and (6) The proposed project will introduce no new significant environmental impacts beyond those previously analyzed in the Certified EIR, and all mitigation measures previously adopted by the Certified EIR, are incorporated herein by this reference.

SECTION 2: Additional Environmental Review Not Required. Based on the Addendum, all related information presented to the Planning Commission, and the specific findings set forth in Section 1, above, the Planning Commission finds that the preparation of a subsequent or supplemental Environmental Impact Report is not required for the Project, as the Project:
(1) Does not constitute substantial changes to the Certified EIR that will require major revisions to the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and
(2) Does not constitute substantial changes with respect to the circumstances under which the Certified EIR was prepared, that will require major revisions to the 107
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Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and (3) Does not contain new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the Certified EIR was certified/adopted, that shows any of the following:
(a) The Project will have one or more significant effects not discussed in the Certified EIR; or
(b) Significant effects previously examined will be substantially more severe than shown in the Certified EIR; or
(c) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the City declined to adopt such measures; or (d) Mitigation measures or alternatives considerably different from those analyzed in the Certified EIR would substantially reduce one or more significant effects on the environment, but which the City declined to adopt.

SECTION 3: Planning Commission Action. Based upon the findings and conclusions set forth in Sections 1 and 2, above, the Planning Commission hereby finds that based upon the entire record of proceedings before it, and all information received, that there is no substantial evidence that the Project will constitute substantial changes to the Certified EIR, and does hereby approve the EIR Addendum, attached hereto as "Attachment A," and incorporated herein by this reference.

SECTION 4: Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East "B" Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

SECTION 5: Certification to Adoption. The Secretary shall certify to the adoption of the Resolution.
- - - - - - - - - - - - - -
108
109
110
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ATTACHMENT A:

Addendum to The Ontario Plan
Environmental Impact Report
(Addendum to follow this page)
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ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚŶĂůǇƐŝƐĂŶĚWƌŽũĞĐƚƉƉƌŽǀĂůƐ͘͘͘͘͘͘͘͘͘Ϯϯ ϰ͘ϭ ĞƐƚŚĞƚŝĐƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϰ ϰ͘Ϯ ŐƌŝĐƵůƚƵƌĂůĂŶĚ&ŽƌĞƐƚƌǇZĞƐŽƵƌĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϳ ϰ͘ϯ ŝƌYƵĂůŝƚǇ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϵ ϰ͘ϰ ŝŽůŽŐŝĐĂůZĞƐŽƵƌĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϲ ϰ͘ϱ ƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϬ ϰ͘ϲ 'ĞŽůŽŐǇĂŶĚ^ŽŝůƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϯ ϰ͘ϳ 'ƌĞĞŶŚŽƵƐĞ'ĂƐ
ŵŝƐƐŝŽŶƐ;'ůŽďĂůůŝŵĂƚĞŚĂŶŐĞͿ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϳ ϰ͘ϴ ,ĂǌĂƌĚƐĂŶĚ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϰϵ ϰ͘ϵ ,ǇĚƌŽůŽŐǇĂŶĚtĂƚĞƌYƵĂůŝƚǇ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱϰ ϰ͘ϭϬ >ĂŶĚhƐĞĂŶĚWůĂŶŶŝŶŐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϱϴ ϰ͘ϭϭ DŝŶĞƌĂůZĞƐŽƵƌĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϬ ϰ͘ϭϮ EŽŝƐĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϭ ϰ͘ϭϯ WŽƉƵůĂƚŝŽŶĂŶĚ,ŽƵƐŝŶŐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϲ ϰ͘ϭϰ WƵďůŝĐ^ĞƌǀŝĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϴ ϰ͘ϭϱ ZĞĐƌĞĂƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϬ ϰ͘ϭϲ dƌĂŶƐƉŽƌƚĂƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϭ ϰ͘ϭϳ hƚŝůŝƚŝĞƐĂŶĚ^ĞƌǀŝĐĞ^ǇƐƚĞŵƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϰ ϰ͘ϭϴ dƌŝďĂůƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳϴ ϰ͘ϭϵ
ŶĞƌŐǇ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϴϭ ϰ͘ϮϬ tŝůĚĨŝƌĞ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϴϮ ϱ ĞƚĞƌŵŝŶĂƚŝŽŶŽĨƉƉƌŽƉƌŝĂƚĞ
YŽĐƵŵĞŶƚĂƚŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϴϱ ϲ ŽŶĐůƵƐŝŽŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϴϵ ϳ ZĞĨĞƌĞŶĐĞƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϵϭ 114
dĂďůĞŽĨŽŶƚĞŶƚƐ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ŝŝ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
>/^dK&
y,//d^

ǆŚŝďŝƚϭ͗ZĞŐŝŽŶĂů>ŽĐĂƚŝŽŶDĂƉ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϳ

ǆŚŝďŝƚϮ͗WƌŽũĞĐƚsŝĐŝŶŝƚǇDĂƉ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϵ

ǆŚŝďŝƚϯ͗ŽŶĐĞƉƚƵĂů^ŝƚĞWůĂŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϭ

ǆŚŝďŝƚϰ͘ϭ͗
ůĞǀĂƚŝŽŶƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϯ

ǆŚŝďŝƚϰ͘Ϯ͗ŽŶĐĞƉƚƵĂů
ůĞǀĂƚŝŽŶƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϱ

ǆŚŝďŝƚϱ͗ŽŶĐĞƉƚƵĂů>ĂŶĚƐĐĂƉĞWůĂŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϳ

ǆŚŝďŝƚϲ͗ŽŶĐĞƉƚƵĂů'ƌĂĚŝŶŐWůĂŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϭϵ >/^dK&d>
^
dĂďůĞϭ͗ƐƐĞƐƐŽƌWĂƌĐĞůEƵŵďĞƌƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯ dĂďůĞϮ͗ŽŶƐƚƌƵĐƚŝŽŶ,ĞĂůƚŚZŝƐŬ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϯ dĂďůĞϯ͗KƉĞƌĂƚŝŽŶĂů,ĞĂůƚŚZŝƐŬ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϯ dĂďůĞϰ͗ŚƌŽŶŝĐĂŶĚĐƵƚĞ,ĂǌĂƌĚƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϰ dĂďůĞϱ͗dǇƉŝĐĂůŽŶƐƚƌƵĐƚŝŽŶ
ƋƵŝƉŵĞŶƚEŽŝƐĞĂŶĚsŝďƌĂƚŝŽŶ>ĞǀĞůƐ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϲϯ >/^dK&WW
E/
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͘ DŝƚŝŐĂƚŝŽŶDŽŶŝƚŽƌŝŶŐĂŶĚZĞƉŽƌƚŝŶŐWƌŽŐƌĂŵ
͘ ƵůƚƵƌĂůZĞƐŽƵƌĐĞdĞĐŚŶŝĐĂůZĞƉŽƌƚ
͘ ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
͘ WŚĂƐĞ/
ŶǀŝƌŽŶŵĞŶƚĂů^ŝƚĞƐƐĞƐƐŵĞŶƚ
115
WƵƌƉŽƐĞŽĨƚŚĞĚĚĞŶĚƵŵ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϭ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϭ WhZWK^
K&d,

EhD
dŚŝƐĚĚĞŶĚƵŵ ŚĂƐďĞĞŶ ƉƌĞƉĂƌĞĚŝŶ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ ƉƌŽǀŝƐŝŽŶƐŽĨ ƚŚĞ ĂůŝĨŽƌŶŝĂ ŶǀŝƌŽŶŵĞŶƚĂů
YƵĂůŝƚǇĐƚ;
YͿ;ĂůŝĨŽƌŶŝĂWƵďůŝĐZĞƐŽƵƌĐĞƐŽĚĞ΀WZ΁^ĞĐƚŝŽŶϮϭϬϬϬĞƚƐĞƋ͘Ϳ͖ƚŚĞ Y'ƵŝĚĞůŝŶĞƐ
;dŝƚůĞ ϭϰ͕ĂůŝĨŽƌŶŝĂŽĚĞ ŽĨ ZĞŐƵůĂƚŝŽŶƐ΀Z΁^ĞĐƚŝŽŶ ϭϱϬϬϬ ĞƚƐĞƋ͘Ϳ͖ĂŶĚ ƚŚĞƌƵůĞƐ͕ƌĞŐƵůĂƚŝŽŶƐ͕ĂŶĚ ƉƌŽĐĞĚƵƌĞƐĨŽƌŝŵƉůĞŵĞŶƚŝŶŐ
YĂƐƐĞƚĨŽƌƚŚďǇƚŚĞŝƚǇŽĨKŶƚĂƌŝŽ;ŝƚǇͿ͘dŚĞŝƚǇŝƐƚŚĞůĞĂĚĂŐĞŶĐǇ ƵŶĚĞƌƚŚĞ
Y͘
^ĞĐƚŝŽŶϭϱϭϲϰ;ĂͿŽĨƚŚĞ
Y'ƵŝĚĞůŝŶĞƐƐƚĂƚĞƐƚŚĂƚ͞ƚŚĞůĞĂĚĂŐĞŶĐǇŽƌĂƌĞƐƉŽŶƐŝďůĞĂŐĞŶĐǇƐŚĂůůƉƌĞƉĂƌĞ ĂŶĂĚĚĞŶĚƵŵƚŽĂƉƌĞǀŝŽƵƐůǇĐĞƌƚŝĨŝĞĚ
/ZŝĨƐŽŵĞĐŚĂŶŐĞƐŽƌĂĚĚŝƚŝŽŶƐĂƌĞŶĞĐĞƐƐĂƌǇ͕ďƵƚŶŽŶĞŽĨƚŚĞ ĐŽŶĚŝƚŝŽŶƐ ĚĞƐĐƌŝďĞĚ ŝŶ ^ĞĐƚŝŽŶ ϭϱϭϲϮ ĐĂůůŝŶŐ ĨŽƌ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ Ă ƐƵďƐĞƋƵĞŶƚ /Z ŚĂǀĞ ŽĐĐƵƌƌĞĚ͘͟
WƵƌƐƵĂŶƚƚŽ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿŽĨƚŚĞ
Y'ƵŝĚĞůŝŶĞƐ͕ĂƐƵďƐĞƋƵĞŶƚ
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ;^
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ŽƌEĞŐĂƚŝǀĞĞĐůĂƌĂƚŝŽŶŝƐŽŶůǇƌĞƋƵŝƌĞĚǁŚĞŶ͗
;ϭͿ ^ƵďƐƚĂŶƚŝĂůĐŚĂŶŐĞƐĂƌĞƉƌŽƉŽƐĞĚŝŶƚŚĞƉƌŽũĞĐƚǁŚŝĐŚǁŝůůƌĞƋƵŝƌĞŵĂũŽƌƌĞǀŝƐŝŽŶƐŽĨƚŚĞƉƌĞǀŝŽƵƐ

/ZŽƌŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶĚƵĞƚŽƚŚĞŝŶǀŽůǀĞŵĞŶƚŽĨŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐŽƌĂ ƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐ͖ ;ϮͿ ^ƵďƐƚĂŶƚŝĂů ĐŚĂŶŐĞƐ ŽĐĐƵƌ ǁŝƚŚ ƌĞƐƉĞĐƚ ƚŽ ƚŚĞ ĐŝƌĐƵŵƐƚĂŶĐĞƐ ƵŶĚĞƌ ǁŚŝĐŚ ƚŚĞ ƉƌŽũĞĐƚ ŝƐ ƵŶĚĞƌƚĂŬĞŶǁŚŝĐŚǁŝůůƌĞƋƵŝƌĞŵĂũŽƌƌĞǀŝƐŝŽŶƐŽĨƚŚĞƉƌĞǀŝŽƵƐ /ZŽƌEĞŐĂƚŝǀĞĞĐůĂƌĂƚŝŽŶĚƵĞƚŽ
ƚŚĞŝŶǀŽůǀĞŵĞŶƚŽĨŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇ ŽĨƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐ͖Žƌ
;ϯͿ EĞǁ ŝŶĨŽƌŵĂƚŝŽŶ ŽĨ ƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞ͕ǁŚŝĐŚ ǁĂƐŶŽƚ ŬŶŽǁŶ ĂŶĚ ĐŽƵůĚ ŶŽƚ ŚĂǀĞ ďĞĞŶ ŬŶŽǁŶ ǁŝƚŚ ƚŚĞĞǆĞƌĐŝƐĞŽĨ ƌĞĂƐŽŶĂďůĞĚŝůŝŐĞŶĐĞ ĂƚƚŚĞ ƚŝŵĞƚŚĞƉƌĞǀŝŽƵƐ /ZǁĂƐĐĞƌƚŝĨŝĞĚĂƐ
ĐŽŵƉůĞƚĞŽƌƚŚĞEĞŐĂƚŝǀĞĞĐůĂƌĂƚŝŽŶǁĂƐĂĚŽƉƚĞĚ͕ƐŚŽǁƐĂŶǇŽĨƚŚĞĨŽůůŽǁŝŶŐ͗ ;Ϳ dŚĞƉƌŽũĞĐƚǁŝůůŚĂǀĞŽŶĞ ŽƌŵŽƌĞƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐŶŽƚĚŝƐĐƵƐƐĞĚŝŶƚŚĞƉƌĞǀŝŽƵƐ /ZŽƌ
ŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶ͖
;Ϳ ^ŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐƉƌĞǀŝŽƵƐůǇĞǆĂŵŝŶĞĚǁŝůůďĞƐƵďƐƚĂŶƚŝĂůůǇŵŽƌĞƐĞǀĞƌĞƚŚĂŶƐŚŽǁŶŝŶƚŚĞ ƉƌĞǀŝŽƵƐ
/Z͖
;Ϳ DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐƉƌĞǀŝŽƵƐůǇĨŽƵŶĚ ŶŽƚƚŽ ďĞĨĞĂƐŝďůĞǁŽƵůĚ ŝŶ ĨĂĐƚďĞ ĨĞĂƐŝďůĞ͕ĂŶĚǁŽƵůĚƐƵďƐƚĂŶƚŝĂůůǇƌĞĚƵĐĞŽŶĞŽƌŵŽƌĞƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐŽĨƚŚĞƉƌŽũĞĐƚ͕ďƵƚ ƚŚĞƉƌŽũĞĐƚƉƌŽƉŽŶĞŶƚƐĚĞĐůŝŶĞƚŽĂĚŽƉƚƚŚĞŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞŽƌĂůƚĞƌŶĂƚŝǀĞ͖Žƌ ;Ϳ DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐǁŚŝĐŚĂƌĞĐŽŶƐŝĚĞƌĂďůǇĚŝĨĨĞƌĞŶƚĨƌŽŵƚŚŽƐĞĂŶĂůǇǌĞĚ ŝŶ ƚŚĞ ƉƌĞǀŝŽƵƐ
/ZǁŽƵůĚ ƐƵďƐƚĂŶƚŝĂůůǇƌĞĚƵĐĞ ŽŶĞ Žƌ ŵŽƌĞ ƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐ ŽŶ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ͕ ďƵƚ ƚŚĞ ƉƌŽũĞĐƚ ƉƌŽƉŽŶĞŶƚƐ ĚĞĐůŝŶĞ ƚŽ ĂĚŽƉƚ ƚŚĞŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞŽƌ ĂůƚĞƌŶĂƚŝǀĞ͘
dŚĞKŶƚĂƌŝŽWůĂŶ;KŶƚĂƌŝŽ'ĞŶĞƌĂůWůĂŶ΀'W΁ͿĂŶĚ&ŝŶĂů ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ;KŶƚĂƌŝŽ'W
/ZͿǁĂƐ
ĂĚŽƉƚĞĚďǇƚŚĞŝƚǇŽƵŶĐŝůŽŶ:ĂŶƵĂƌǇϮϳ͕ϮϬϭϬ͘ϭdŚĞKŶƚĂƌŝŽ'WŝƐŝŶƚĞŶĚĞĚƚŽŐƵŝĚĞƚŚĞŝƚǇ͛ƐŐƌŽǁƚŚ ĂŶĚĚĞǀĞůŽƉŵĞŶƚ͘tŚŝůĞƚŚĞĚŽĐƵŵĞŶƚǁĂƐŶŽƚĐƌĞĂƚĞĚǁŝƚŚĂŶĞǆƉŝƌĂƚŝŽŶƚŝŵĞůŝŶĞ͕ƚŚĞŝŶĨŽƌŵĂƚŝŽŶƵƐĞĚ ϭ
ŝƚǇŽĨKŶƚĂƌŝŽ͘;ϮϬϭϬͿ͘DŽŶƚŚůǇĐƚŝǀŝƚǇZĞƉŽƌƚͶĐƚŝŽŶƐ DŽŶƚŚŽĨ͗:ĂŶƵĂƌǇϮϬϭϬ͘WĂŐĞϮ͘ZĞƚƌŝĞǀĞĚĨƌŽŵ͗ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽĐĂ͘ŐŽǀͬƐŝƚĞƐͬĚĞĨĂƵůƚͬĨŝůĞƐͬKŶƚĂƌŝŽͲ&ŝůĞƐͬWůĂŶŶŝŶŐͬDŽŶƚŚůǇͲĐƚŝǀŝƚǇͲZĞƉŽƌƚƐͬũĂŶƵĂƌǇͺϮϬϭϬ͘ƉĚĨ ;ĐĐĞƐƐĞĚƵŐƵƐƚϭϵ͕ϮϬϮϭͿ
116
WƵƌƉŽƐĞŽĨƚŚĞĚĚĞŶĚƵŵ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z Ϯ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŝŶŝƚƐĐƌĞĂƚŝŽŶĂŶĚŐŽĂůƐƚŚĂƚǁĞƌĞĐƌĞĂƚĞĚǁĞƌĞďĂƐĞĚŽŶĂϮϬϯϱŚŽƌŝǌŽŶǇĞĂƌ͘^ŝŶĐĞŝƚƐĐĞƌƚŝĨŝĐĂƚŝŽŶ͕ƚŚĞ KŶƚĂƌŝŽ'WĂŶĚKŶƚĂƌŝŽ'W
/ZŚĂǀĞďĞĞŶƚŚĞďĂƐŝƐĨŽƌŐƌŽǁƚŚŵĞƚƌŝĐƐŝŶƚŚĞŝƚǇĂŶĚĂĐƚĂƐƚŚĞŐƵŝĚĞůŝŶĞƐ ĨŽƌĐŽŶƚŝŶƵĞĚĚĞǀĞůŽƉŵĞŶƚǁŝƚŚŝŶƚŚĞŝƚǇ͘dŚĞKŶƚĂƌŝŽWůĂŶŝŶĐůƵĚĞƐƐŝǆĐŽŵƉŽŶĞŶƚƐǁŚŝĐŚĐƌĞĂƚĞĂŵŽƌĞ ĐŽŵƉƌĞŚĞŶƐŝǀĞŐƵŝĚĞůŝŶĞ͘
ϭ͘ dŚĞsŝƐŝŽŶŽŵƉŽŶĞŶƚƉƌŽǀŝĚĞƐĂďƌŽĂĚŽƵƚůŽŽŬĂƚƚŚĞŝƚǇ͛ƐĐŚĂƌĂĐƚĞƌĂŶĚƚŚĞŝĚĞĂůĚŝƌĞĐƚŝŽŶŽĨ ĨƵƚƵƌĞŐƌŽǁƚŚ͘dŚŝƐĐŽŵƉŽŶĞŶƚ ŽƵƚůŝŶĞƐƚŚĞ ŝŶƚĞŶƚŝŽŶŽĨ ƚŚĞKŶƚĂƌŝŽ'WĂŶĚ ƚŚĞĨŽƵŶĚĂƚŝŽŶĂů ĐŽŶĐĞƉƚƐŶĞĐĞƐƐĂƌǇĨŽƌƚŚĞĐƌĞĂƚŝŽŶŽĨĂƉƌŽƐƉĞƌŽƵƐĐŽŵŵƵŶŝƚǇ͘dŚĞƐĞĐŽŶĐĞƉƚƐŝŶĐůƵĚĞĚǇŶĂŵŝĐ ďĂůĂŶĐĞ͕ĂƉƌŽƐƉĞƌŽƵƐĞĐŽŶŽŵǇ͕ĚŝƐƚŝŶĐƚŝǀĞĚĞǀĞůŽƉŵĞŶƚ͕ĂŶĚƌĞĐŽŐŶŝǌĞĚůĞĂĚĞƌƐŚŝƉ͘ Ϯ͘ dŚĞ'ŽǀĞƌŶĂŶĐĞDĂŶƵĂůĐŽŶƚĞǆƚƵĂůŝǌĞƐƚŚĞKŶƚĂƌŝŽ'WĂƐĂďƵƐŝŶĞƐƐƉůĂŶĨŽƌƚŚĞŝƚǇ͘/ƚĞǆƉůĂŝŶƐ ŚŽǁdŚĞKŶƚĂƌŝŽWůĂŶŝƐĂƚŽŽůĨŽƌĚĞĐŝƐŝŽŶŵĂŬŝŶŐĂŶĚĐŽŵŵƵŶŝĐĂƚŝŽŶ͘ ϯ͘ dŚĞWŽůŝĐǇWůĂŶƐƚĂƚĞƐůŽŶŐͲƚĞƌŵŐŽĂůƐ͕ƉƌŝŶĐŝƉůĞƐ͕ĂŶĚƉŽůŝĐŝĞƐĨŽƌĂĐŚŝĞǀŝŶŐKŶƚĂƌŝŽ͛ƐsŝƐŝŽŶ͘dŚŝƐ ĐŽŵƉŽŶĞŶƚĂĐƚƐĂƐƚŚĞĚŝƌĞĐƚŐƵŝĚĞĨŽƌĐŽŶƚŝŶƵĞĚ ŐƌŽǁƚŚĂŶĚĚĞǀĞůŽƉŵĞŶƚǁŝƚŚŝŶƚŚĞŝƚǇĂŶĚ ĨƵůůǇĚĞĨŝŶĞƐĞĂĐŚĂƐƉĞĐƚŽĨůŝĨĞǁŝƚŚŝŶƚŚĞŝƚǇ͘dŚĞƉŽůŝĐǇƉůĂŶĂĚĚƌĞƐƐĞƐĞĂĐŚĂƐƉĞĐƚŽĨůŝĨĞǁŝƚŚŝŶ ƚŚĞŝƚǇƚŚƌŽƵŐŚƐĞǀĞŶĞůĞŵĞŶƚƐ͗
Ă͘ >ĂŶĚhƐĞ
ď͘ ŽŵŵƵŶŝƚǇĞƐŝŐŶ
Đ͘ ŽŵŵƵŶŝƚǇ
ĐŽŶŽŵŝĐƐ
Ě͘
ŶǀŝƌŽŶŵĞŶƚĂůZĞƐŽƵƌĐĞƐ
Ğ͘ ^ĂĨĞƚǇ
Ĩ͘ ^ŽĐŝĂůZĞƐŽƵƌĐĞƐ
Ő͘ DŽďŝůŝƚǇ
ϰ͘ dŚĞŝƚǇŽƵŶĐŝůWƌŝŽƌŝƚŝĞƐĐŽŶƐŝƐƚŽĨƐŚŽƌƚƚĞƌŵĂĐƚŝŽŶƐĂŶĚŽďũĞĐƚŝǀĞƐĐŽŶƐŝĚĞƌĞĚďǇƚŚĞĐƵƌƌĞŶƚ ŝƚǇĐŽƵŶĐŝů͘dŚĞƐĞŐŽĂůƐƐƉĂŶĂƐŝŶŐůĞĨŝƐĐĂůǇĞĂƌǁŝƚŚƚŚĞĐƵƌƌĞŶƚƐĞƚŽĨŐŽĂůƐƚŽďĞŝŵƉůĞŵĞŶƚĞĚ ŝŶƚŚĞϮϬϮϬͬϮϬϮϭĨŝƐĐĂůǇĞĂƌ͘
ϱ͘ /ŵƉůĞŵĞŶƚĂƚŝŽŶĚĞƐĐƌŝďĞƐƚŚĞŵĞƚŚŽĚƐƚŚĂƚƚŚĞŝƚǇŝŶƚĞŶĚƐƚŽƵƐĞŝŶŽƌĚĞƌƚŽĨƵůůǇ ƌĞĂůŝǌĞƚŚĞ ŐŽĂůƐŽĨƚŚĞKŶƚĂƌŝŽ'W͘dŚĞƐĞŵĞƚŚŽĚƐŝŶĐůƵĚĞ ƚŚĞĨŽƌŵĂƚŝŽŶŽĨƉĂƌƚŶĞƌƐŚŝƉƐǁŝƚŚŽƚŚĞƌƉƵďůŝĐ ŽƌƉƌŝǀĂƚĞĞŶƚŝƚŝĞƐĂŶĚƚŚĞĂĚŽƉƚŝŽŶŽĨŵĂƐƚĞƌƉůĂŶƐĨŽƌƉŚǇƐŝĐĂůĚĞǀĞůŽƉŵĞŶƚƐŽƌƐĞƌǀŝĐĞƐǇƐƚĞŵƐ ŝŶĐůƵĚŝŶŐĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƉƌŽŐƌĂŵƐĂŶĚƌĞĐƌĞĂƚŝŽŶŵĂƐƚĞƌƉůĂŶƐ͘KƚŚĞƌŵĞƚŚŽĚƐƌĞůŝĞĚƵƉŽŶ ƚŽŝŵƉůĞŵĞŶƚƚŚĞŝƚǇ͛ƐŐŽĂůƐŝŶĐůƵĚĞƚŚĞĐƌĞĂƚŝŽŶŽĨĐŝƚǇŝŶŝƚŝĂƚŝǀĞƐ͕ƚŚĞĐŽŶƐŝƐƚĞŶƚĐŽŶƚŝŶƵĂƚŝŽŶ ŽĨŽƉĞƌĂƚŝŽŶĂůƉƌŽŐƌĂŵƐ͕ĂŶĚƚŚĞĨĂĐŝůŝƚĂƚŝŽŶŽĨĚĞǀĞůŽƉŵĞŶƚƉƌŽũĞĐƚƐ͘ ϲ͘ dƌĂĐŬŝŶŐ ĂŶĚ &ĞĞĚďĂĐŬ ŝŶĐůƵĚĞƐ Ă ƐǇƐƚĞŵ ĨŽƌ ƉƵďůŝĐ ĞŵƉůŽǇĞĞƐ ĂŶĚ ƉƌŝǀĂƚĞ ƌĞƐŝĚĞŶƚƐ ƚŽ ĂĚĞƋƵĂƚĞůǇĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚŝƚǇĚĞƉĂƌƚŵĞŶƚƐĂŶĚƉƌŽǀŝĚĞƚƌĂŶƐƉĂƌĞŶĐǇŝŶŝƚǇŽƉĞƌĂƚŝŽŶƐ͘ 117
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϯ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
Ϯ
^Z/Wd/KEK&WZKWK^
WZK:
d
Ϯ͘ϭ WƌŽũĞĐƚ^ĞƚƚŝŶŐĂŶĚ>ŽĐĂƚŝŽŶ
dŚĞ WƌŽũĞĐƚ ƐŝƚĞŝƐ ůŽĐĂƚĞĚ ŝŶ ƚŚĞ ǁĞƐƚĞƌŶƉŽƌƚŝŽŶ ŽĨ ƚŚĞ ŝƚǇ ŽŶ ƚŚĞ ǁĞƐƚƐŝĚĞ ŽĨ ŽŶ sŝĞǁ ǀĞŶƵĞ ĂƉƉƌŽǆŝŵĂƚĞůǇϭϯϬĨĞĞƚŶŽƌƚŚŽĨƚŚĞŶŽƌƚŚǁĞƐƚĐŽƌŶĞƌŽĨ ƚŚĞŝŶƚĞƌƐĞĐƚŝŽŶŽĨĞĚĂƌ^ƚƌĞĞƚĂŶĚŽŶsŝĞǁ ǀĞŶƵĞ͘
ǆŚŝďŝƚϭ͕ZĞŐŝŽŶĂů>ŽĐĂƚŝŽŶDĂƉĂŶĚ
ǆŚŝďŝƚϮ͕WƌŽũĞĐƚsŝĐŝŶŝƚǇDĂƉƐŚŽǁƚŚĞWƌŽũĞĐƚ͛ƐůŽĐĂƚŝŽŶ ǁŝƚŚŝŶƚŚĞŽǀĞƌĂůůŝƚǇĂƐǁĞůůĂƐƚŚĞWƌŽũĞĐƚ͛ƐůŽĐĂƚŝŽŶǁŝƚŚŝŶƚŚĞ ƐƵƌƌŽƵŶĚŝŶŐĐŽŵŵƵŶŝƚǇ͕ƌĞƐƉĞĐƚŝǀĞůǇ͘ ZĞŐŝŽŶĂůĂĐĐĞƐƐƚŽƚŚĞƐŝƚĞǁŽƵůĚďĞǀŝĂĂůŝĨŽƌŶŝĂ^ƚĂƚĞ,ŝŐŚǁĂǇϲϬ;ͲϲϬͿĂƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϱŵŝůĞƐƐŽƵƚŚ ŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞǁŝƚŚƚŚĞŶĞĂƌĞƐƚĞǆŝƚͬĞŶƚƌĂŶĐĞƌĂŵƉůŽĐĂƚĞĚĂƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϳŵŝůĞƐƐŽƵƚŚĞĂƐƚŽĨƚŚĞ WƌŽũĞĐƚ͕ĂƚͲϲϬ͛ƐŝŶƚĞƌƐĞĐƚŝŽŶǁŝƚŚ'ƌŽǀĞǀĞŶƵĞ͘
dŚĞWƌŽũĞĐƚǁŽƵůĚ ŽĐĐƵƉǇ Ăϳ͘ϰϳŶĞƚĂĐƌĞƐŝƚĞǁŝƚŚŝŶ ƚŚĞŝƚǇĂŶĚ ŝŶĐůƵĚĞƐƚŚĞĨŽůůŽǁŝŶŐ ĨŝĨƚǇͲĨŝǀĞ ;ϱϱͿ ƐƐĞƐƐŽƌWĂƌĐĞůEƵŵďĞƌƐ;WEƐͿ͗ϭϬϱϬͲϰϰϭͲϬϱ͕ϭϬϱϬͲϰϰϭͲϬϵ͕ϭϬϱϬͲϰϰϭͲϭϭƚŚƌŽƵŐŚͲϲϮ͕ĂŶĚϭϬϱϬͲϰϰϭͲϳϯ͘ EŽƚĞ͗dŚĞĨŽůůŽǁŝŶŐWEƐĂƌĞĐŽŶĚŽŵŝŶŝƵŵƵŶŝƚƐǀŝĂĂƉƌĞǀŝŽƵƐůǇƌĞĐŽƌĚĞĚĐŽŶĚŽŵŝŶŝƵŵƉůĂŶ͕ǁŚŝĐŚǁŝůů ďĞƌĞŵŽǀĞĚƉƌŝŽƌƚŽƚŚĞWƌŽũĞĐƚ͛ƐĐŽŶƐƚƌƵĐƚŝŽŶĐŽŵŵĞŶĐĞŵĞŶƚ͗ϭϬϱϬͲϰϰϭͲϭϭƚŚƌŽƵŐŚͲϲϮ͘ dĂďůĞϭ͗ƐƐĞƐƐŽƌWĂƌĐĞůEƵŵďĞƌƐ
ϭϬϱϬͲϰϰϭͲϬϱ ϭϬϱϬͲϰϰϭͲϬϵ ϭϬϱϬͲϰϰϭͲϭϭ ϭϬϱϬͲϰϰϭͲϭϮ ϭϬϱϬͲϰϰϭͲϭϯ ϭϬϱϬͲϰϰϭͲϭϰ ϭϬϱϬͲϰϰϭͲϭϱ ϭϬϱϬͲϰϰϭͲϭϲ ϭϬϱϬͲϰϰϭͲϭϳ ϭϬϱϬͲϰϰϭͲϭϴ ϭϬϱϬͲϰϰϭͲϭϵ ϭϬϱϬͲϰϰϭͲϮϬ ϭϬϱϬͲϰϰϭͲϮϭ ϭϬϱϬͲϰϰϭͲϮϮ ϭϬϱϬͲϰϰϭͲϮϯ ϭϬϱϬͲϰϰϭͲϮϰ ϭϬϱϬͲϰϰϭͲϮϱ ϭϬϱϬͲϰϰϭͲϮϲ ϭϬϱϬͲϰϰϭͲϮϳ ϭϬϱϬͲϰϰϭͲϮϴ ϭϬϱϬͲϰϰϭͲϮϵ ϭϬϱϬͲϰϰϭͲϯϬ ϭϬϱϬͲϰϰϭͲϯϭ ϭϬϱϬͲϰϰϭͲϯϮ ϭϬϱϬͲϰϰϭͲϯϯ ϭϬϱϬͲϰϰϭͲϯϰ ϭϬϱϬͲϰϰϭͲϯϱ ϭϬϱϬͲϰϰϭͲϯϲ ϭϬϱϬͲϰϰϭͲϯϳ ϭϬϱϬͲϰϰϭͲϯϴ ϭϬϱϬͲϰϰϭͲϯϵ ϭϬϱϬͲϰϰϭͲϰϬ ϭϬϱϬͲϰϰϭͲϰϭ ϭϬϱϬͲϰϰϭͲϰϮ ϭϬϱϬͲϰϰϭͲϰϯ ϭϬϱϬͲϰϰϭͲϰϰ ϭϬϱϬͲϰϰϭͲϰϱ ϭϬϱϬͲϰϰϭͲϰϲ ϭϬϱϬͲϰϰϭͲϰϳ ϭϬϱϬͲϰϰϭͲϰϴ ϭϬϱϬͲϰϰϭͲϰϵ ϭϬϱϬͲϰϰϭͲϱϬ ϭϬϱϬͲϰϰϭͲϱϭ ϭϬϱϬͲϰϰϭͲϱϮ ϭϬϱϬͲϰϰϭͲϱϯ ϭϬϱϬͲϰϰϭͲϱϰ ϭϬϱϬͲϰϰϭͲϱϱ ϭϬϱϬͲϰϰϭͲϱϲ ϭϬϱϬͲϰϰϭͲϱϳ ϭϬϱϬͲϰϰϭͲϱϴ ϭϬϱϬͲϰϰϭͲϱϵ ϭϬϱϬͲϰϰϭͲϲϬ ϭϬϱϬͲϰϰϭͲϲϭ ϭϬϱϬͲϰϰϭͲϲϮ ϭϬϱϬͲϰϰϭͲϳϯ dŚĞWƌŽũĞĐƚƐŝƚĞŝƐĐƵƌƌĞŶƚůǇĚŝƐƚƵƌďĞĚĂŶĚĚĞǀĞůŽƉĞĚ ǁŝƚŚŝŶĚƵƐƚƌŝĂůƵƐĞƐĂŶĚŽƚŚĞƌŝŵƉƌŽǀĞŵĞŶƚƐ͘dŚĞ ŶŽƌƚŚĞƌŶ ƉŽƌƚŝŽŶ ŽĨ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ ĐŽŶƚĂŝŶƐ ƚǁŽ ŵƵůƚŝͲƚĞŶĂŶƚ ŝŶĚƵƐƚƌŝĂů ďƵŝůĚŝŶŐƐ ĂŶĚ ƐƵƌĨĂĐĞ ůŽƚ ŝŵƉƌŽǀĞŵĞŶƚƐ͘dŚĞŶŽƌƚŚĞĂƐƚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞŝŶĐůƵĚĞƐƚŚƌĞĞĚƌŝǀĞǁĂǇƐĐŽŶŶĞĐƚŝŶŐƚŽŽŶ sŝĞǁǀĞŶƵĞ͘dŚĞƌĞŵĂŝŶĚĞƌŽĨƚŚĞŶŽƌƚŚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĐŽŶƐŝƐƚƐŽĨŵĂŝŶƚĂŝŶĞĚŐƌĂƐƐĞƐ͘ dŚĞƐŽƵƚŚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ;WEϭϬϱϬͲϰϰϭͲϬϱͿĐŽŶƚĂŝŶƐĨŽƵƌďƵŝůĚŝŶŐƐ͕ĨŽƵƌƐŚĞĚƐƚƌƵĐƚƵƌĞƐ͕ ĂŶĚŽŶĞĚƌŝǀĞǁĂǇĐŽŶŶĞĐƚŝŶŐƚŽŽŶsŝĞǁǀĞŶƵĞ͘ƌĞƐŝĚĞŶƚŝĂůďƵŝůĚŝŶŐŝƐůŽĐĂƚĞĚŝŶƚŚĞƐŽƵƚŚĞĂƐƚĐŽƌŶĞƌ ŽĨ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ ďĞƐŝĚĞ Ă ůĂƌŐĞ͕ƐŚĞĚ ƐƚƌƵĐƚƵƌĞ͘dŚĞ ƐŽƵƚŚĞƌŶ ƉŽƌƚŝŽŶ ŽĨ ƚŚĞ WƌŽũĞĐƚ͕ ďĞƐŝĚĞ ƚŚĞ ƌĞƐŝĚĞŶƚŝĂůƉƌŽƉĞƌƚǇ͕ŝƐĨƵůůǇƉĂǀĞĚĂŶĚƵƐĞĚĨŽƌƉĂƌŬŝŶŐĂŶĚŽƵƚĚŽŽƌƐƚŽƌĂŐĞ͘^ŽŵĞƚƌĞĞƐĂƌĞĂůƐŽƉƌĞƐĞŶƚ ŝŶďŽƚŚƚŚĞŶŽƌƚŚĞƌŶĂŶĚƐŽƵƚŚĞƌŶƉŽƌƚŝŽŶƐŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͘ 118
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
^ƵƌƌŽƵŶĚŝŶŐůĂŶĚƵƐĞƐŝŶĐůƵĚĞ͗
EŽƌƚŚͬEŽƌƚŚǁĞƐƚ͗&ŝǀĞ;ϱͿŝŶĚƵƐƚƌŝĂůǁĂƌĞŚŽƵƐĞďƵŝůĚŝŶŐƐ͘ ^ŽƵƚŚ͗EŽŶͲŽŶĨŽƌŵŝŶŐƌĞƐŝĚĞŶƚŝĂůďƵŝůĚŝŶŐǁŝƚŚĂŶĐŝůůĂƌǇŝŶĚƵƐƚƌŝĂůƚƌƵĐŬƉĂƌŬŝŶŐͬŽƵƚĚŽŽƌƐƚŽƌĂŐĞ

ĂƐƚ͗ŽŶsŝĞǁǀĞŶƵĞĂŶĚƚǁŽǁĂƌĞŚŽƵƐĞďƵŝůĚŝŶŐƐ͘
tĞƐƚ͗&ŽƵƌ;ϰͿǁĂƌĞŚŽƵƐĞďƵŝůĚŝŶŐƐ͘
dŚĞWƌŽũĞĐƚƐŝƚĞ͛Ɛ'ĞŶĞƌĂůWůĂŶůĂŶĚƵƐĞĂŶĚǌŽŶŝŶŐĚĞƐŝŐŶĂƚŝŽŶƐĂƌĞĂƐĨŽůůŽǁƐ͗ x 'ĞŶĞƌĂůWůĂŶ>ĂŶĚhƐĞ͗/ŶĚƵƐƚƌŝĂůϮ
x ŽŶŝŶŐ͗'ĞŶĞƌĂů/ŶĚƵƐƚƌŝĂů;/'Ϳ͕>ŝŐŚƚ/ŶĚƵƐƚƌŝĂů;/>Ϳϯ tŚŝůĞĂůůƚŚĞWƌŽũĞĐƚƉĂƌĐĞůƐŚĂǀĞĂ'ĞŶĞƌĂůWůĂŶůĂŶĚƵƐĞĚĞƐŝŐŶĂƚŝŽŶŽĨ/ŶĚƵƐƚƌŝĂů͕ŽŶůǇWEϭϬϱϬͲϰϰϭͲϬϱ ŝƐǌŽŶĞĚĂƐ>ŝŐŚƚ/ŶĚƵƐƚƌŝĂů;/>Ϳ͕ǁŚŝůĞƚŚĞƌĞŵĂŝŶŝŶŐƉĂƌĐĞůƐĂƌĞǌŽŶĞĚ'ĞŶĞƌĂů/ŶĚƵƐƚƌŝĂů;/'Ϳ͘ Ϯ͘Ϯ WƌŽũĞĐƚĞƐĐƌŝƉƚŝŽŶ
dŚĞWƌŽũĞĐƚƉƌŽƉŽƐĞƐƚŚĞĚĞǀĞůŽƉŵĞŶƚ ŽĨ ŽŶĞ ϭϳϰ͕ϲϬϯƐƋƵĂƌĞĨŽŽƚ;ƐĨͿ ǁĂƌĞŚŽƵƐĞďƵŝůĚŝŶŐ ĐŽŶƚĂŝŶŝŶŐ ϭϳϬ͕ϭϬϯƐĨŽĨ ƌĞĨƌŝŐĞƌĂƚĞĚǁĂƌĞŚŽƵƐĞƐƉĂĐĞĂŶĚĂƉƉƌŽǆŝŵĂƚĞůǇϰ͕ϱϬϬƐĨŽĨƚǁŽͲƐƚŽƌǇŽĨĨŝĐĞƐƉĂĐĞŝŶƚŚĞ ƐŽƵƚŚĞĂƐƚĐŽƌŶĞƌŽĨƚŚĞƉƌŽƉŽƐĞĚďƵŝůĚŝŶŐ͘ dŚĞWƌŽũĞĐƚƐŝƚĞǁŽƵůĚŚĂǀĞĂĨůŽŽƌ ĂƌĞĂƌĂƚŝŽ;&ZͿŽĨ Ϭ͘ϱϰ ;Ϭ͘ϱϱ&ZŝƐƚŚĞŵĂǆŝŵƵŵĂůůŽǁĞĚŝŶ/ŶĚƵƐƚƌŝĂůůĂŶĚƵƐĞĂƌĞĂƐ ͿĂŶĚƚŚĞƉƌŽƉŽƐĞĚďƵŝůĚŝŶŐǁŽƵůĚŚĂǀĞĂŶ ĂƉƉƌŽǆŝŵĂƚĞďƵŝůĚŝŶŐ ŚĞŝŐŚƚŽĨ ϰϱ͛;ŵĂǆŝŵƵŵŽĨ ϱϱ͛ƉĞƌŵŝƚƚĞĚͿ͘WƌŽũĞĐƚƐŝƚĞŝŵƉƌŽǀĞŵĞŶƚƐǁŽƵůĚ ĂůƐŽ ŝŶĐůƵĚĞ ƐƵƌĨĂĐĞ ƉĂƌŬŝŶŐ͕ ůĂŶĚƐĐĂƉŝŶŐ͕ ĂŶĚ ŝŶƚĞƌŶĂů ĚƌŝǀĞ ĂŝƐůĞƐ͘ĐĐĞƐƐƚŽ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ ǁŽƵůĚ ďĞ ĞƐƚĂďůŝƐŚĞĚƚŚƌŽƵŐŚƚǁŽĚƌŝǀĞǁĂǇƐĂůŽŶŐƚŚĞĞĂƐƚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞƐŝƚĞĐŽŶŶĞĐƚŝŶŐƚŽŽŶsŝĞǁǀĞŶƵĞ͘ dŚĞWƌŽũĞĐƚŝƐƐƉĞĐƵůĂƚŝǀĞŝŶŶĂƚƵƌĞ͖ƚŚĞĞŶĚƵƐĞƌ͕ƚŚĞŝƌƵƐĞŽĨƚŚĞƉŽƚĞŶƚŝĂůƌĞĨƌŝŐĞƌĂƚĞĚǁĂƌĞŚŽƵƐĞƐƉĂĐĞ͕ ĂŶĚƚŚĞŝƌŚŽƵƌƐŽĨŽƉĞƌĂƚŝŽŶĂƌĞƵŶŬŶŽǁŶĂƚƚŚŝƐƚŝŵĞ͘,ŽǁĞǀĞƌ͕ƚŽďĞĐŽŶƐĞƌǀĂƚŝǀĞ͕ŝƚŚĂƐďĞĞŶĂƐƐƵŵĞĚ ƚŚĂƚƚŚĞ ďƵŝůĚŝŶŐ ǁŽƵůĚ ŽƉĞƌĂƚĞϮϰŚŽƵƌƐ ƉĞƌ ĚĂǇͬϳ ĚĂǇƐ ƉĞƌ ǁĞĞŬ ĨŽƌ ƚŚĞ ĚĚĞŶĚƵŵ͛Ɛ ,ĞĂůƚŚ ZŝƐŬ ƐƐĞƐƐŵĞŶƚ;ƉƉĞŶĚŝǆͿƌĞĨĞƌĞŶĐĞĚŚĞƌĞŝŶ͘
ǆŚŝďŝƚϯ͕ŽŶĐĞƉƚƵĂů^ŝƚĞWůĂŶ͕
ǆŚŝďŝƚϰ͘ϭ͕
ůĞǀĂƚŝŽŶƐ͕ĂŶĚ

ǆŚŝďŝƚ ϰ͘Ϯ͕ ŽŶĐĞƉƚƵĂů
ůĞǀĂƚŝŽŶƐ ǀŝƐƵĂůŝǌĞƐ ƚŚĞ ƉƌŽƉŽƐĞĚ WƌŽũĞĐƚ͛Ɛ ĚŝŵĞŶƐŝŽŶƐ ĂŶĚ ƉůĂŶŶĞĚ ŝŵƉƌŽǀĞŵĞŶƚƐ͘
Ϯ͘Ϯ͘ϭ ĐĐĞƐƐ
ZĞŐŝŽŶĂů
ZĞŐŝŽŶĂůĂĐĐĞƐƐƚŽƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐƉƌŽǀŝĚĞĚǀŝĂͲϲϬ͕ĂƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϱŵŝůĞƐŽƵƚŚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͕ ǁŝƚŚĞǆŝƚƐĂƚ'ƌŽǀĞǀĞŶƵĞĂŶĚ
ƵĐůŝĚǀĞŶƵĞ͘
>ŽĐĂů
>ŽĐĂůĂĐĐĞƐƐƚŽƚŚĞ WƌŽũĞĐƚƐŝƚĞŝƐƉƌŽǀŝĚĞĚ ǀŝĂ ŽŶ sŝĞǁǀĞŶƵĞ ǁŚŝĐŚ ŝƐĂŶϴϴ͛ZŝŐŚƚŽĨtĂǇ ;ZKtͿ ĐŽůůĞĐƚŽƌƐƚƌĞĞƚƚŚĂƚƚƌĞŶĚƐŝŶĂŶŽƌƚŚͲƐŽƵƚŚĚŝƌĞĐƚŝŽŶ͘ Ϯ
ŝƚǇŽĨKŶƚĂƌŝŽ͘ϮϬϭϬ͘
ǆŚŝďŝƚ >hͲϬϭ>ĂŶĚhƐĞWůĂŶ͘ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽƉůĂŶ͘ŽƌŐͬǁƉͲ ĐŽŶƚĞŶƚͬƵƉůŽĂĚƐͬƐŝƚĞƐͬϰͬϮϬϮϭͬϬϱͬdKW>hWͺDĂƉϮϰǆϯϲϭϬͺϲͺϮϬϮϭϬϱϮϰͺsͺϭ͘ƉĚĨ ;ĂĐĐĞƐƐĞĚƵŐƵƐƚϮϬϮϭͿ͘ ϯ ŝƚǇŽĨKŶƚĂƌŝŽ͘ZĞǀ͘ϮϬϮϭ͘ŽŶŝŶŐDĂƉ͘ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽĐĂ͘ŐŽǀͬƐŝƚĞƐͬĚĞĨĂƵůƚͬĨŝůĞƐͬKŶƚĂƌŝŽͲ &ŝůĞƐͬWůĂŶŶŝŶŐͬŽĐƵŵĞŶƚƐͬŽŶŝŶŐйϮϬDĂƉͬŽŶŝŶŐͺϮϬϮϭϬϮϭϮ͘ƉĚĨ ;ĂĐĐĞƐƐĞĚƵŐƵƐƚϮϬϮϭͿ͘ 119
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϱ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
WƌŽũĞĐƚ^ŝƚĞ
WƌŽũĞĐƚƐŝƚĞŵĂŝŶŝŶŐƌĞƐƐĂŶĚĞŐƌĞƐƐĚƌŝǀĞǁĂǇǁŽƵůĚďĞƉƌŽǀŝĚĞĚǀŝĂŽŶĞϰϬͲĨŽŽƚǁŝĚĞĚƌŝǀĞǁĂǇ;ŶŽƌƚŚͿ ĂŶĚ ŽŶĞ ϯϬ͛ʹ ϲ͟ǁŝĚĞ ĚƌŝǀĞǁĂǇ ;ƐŽƵƚŚͿ ůŽĐĂƚĞĚĂůŽŶŐƚŚĞ ĞĂƐƚĞƌŶďŽƌĚĞƌ ŽĨ ƚŚĞƐŝƚĞĂůŽŶŐ ŽŶsŝĞǁ ǀĞŶƵĞ͘dŚĞĚƌŝǀĞǁĂǇƐǁŽƵůĚĐŽŶŶĞĐƚĚŝƌĞĐƚůǇƚŽŽŶsŝĞǁǀĞŶƵĞĂŶĚĂůůŽǁĨƵůů ĂĐĐĞƐƐŵŽǀĞŵĞŶƚĨŽƌ ďŽƚŚǀĞŚŝĐůĞƐĂŶĚƚƌƵĐŬƐ͘
Ϯ͘Ϯ͘Ϯ WĂƌŬŝŶŐ
dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŝŶĐůƵĚĞ ƚŚĞ ƉƌŽǀŝƐŝŽŶ ŽĨ ϭϬϬ ƐƚĂŶĚĂƌĚϵ͛ǆϭϴ͛ƐƚĂůůƐĂŶĚ ϭϵ ϭϮ͛ǆϰϱ͛ƚƌĂŝůĞƌƉĂƌŬŝŶŐ ƐƚĂůůƐ͘WĞƌŝƚǇƌĞƋƵŝƌĞŵĞŶƚƐ͕ƚŚĞWƌŽũĞĐƚŝƐ ƌĞƋƵŝƌĞĚƚŽƉƌŽǀŝĚĞ ϵϴƐƚĂŶĚĂƌĚƐƚĂůůƐĂŶĚƐŝǆƚƌĂŝůĞƌƐƚĂůůƐ͕ ĂŶĚĂƐƐƵĐŚ͕ƉƌŽǀŝĚĞƐƐƵĨĨŝĐŝĞŶƚƉĂƌŬŝŶŐ͘
Ϯ͘Ϯ͘ϯ >ĂŶĚƐĐĂƉŝŶŐ
dŚĞWƌŽũĞĐƚŝƐĂŶƚŝĐŝƉĂƚĞĚƚŽůĂŶĚƐĐĂƉĞĂƉƉƌŽǆŝŵĂƚĞůǇϭϬ͘ϭϰƉĞƌĐĞŶƚ;ϯϮ͕ϱϮϵƐĨͿŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͕ǁŚŝĐŚ ŝƐŐƌĞĂƚĞƌƚŚĂŶƚŚĞŵŝŶŝŵƵŵ ƌĞƋƵŝƌĞĚ ϭϬƉĞƌĐĞŶƚ;ϯϮ͕ϱϮϵƐĨͿĂƐƌĞƋƵŝƌĞĚďǇ ƚŚĞKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚ ŽĚĞ͘&ŽƌĂĚĚŝƚŝŽŶĂůĚĞƚĂŝů͕ƉůĞĂƐĞƌĞĨĞƌƚŽ
ǆŚŝďŝƚϱ͕ŽŶĐĞƉƚƵĂů>ĂŶĚƐĐĂƉĞWůĂŶ͘
Ϯ͘Ϯ͘ϰ ^ŝƚĞ
ǆĐĂǀĂƚŝŽŶĂŶĚ'ƌĂĚŝŶŐĐƚŝǀŝƚŝĞƐ
dŚĞWƌŽũĞĐƚƐŝƚĞŝƐĨůĂƚ͕ƐůŽƉŝŶŐŐĞŶƚůǇĚŽǁŶǁĂƌĚĨƌŽŵŶŽƌƚŚƚŽƚŚĞƐŽƵƚŚĂŶĚǁĞƐƚƚŽĞĂƐƚ͕ǁŝƚŚĐŚĂŶŐĞŝŶ ŐƌŽƵŶĚƐƵƌĨĂĐĞĞůĞǀĂƚŝŽŶĨƌŽŵĂƉƉƌŽǆŝŵĂƚĞůǇϴϳϮĨĞĞƚƚŽϴϲϰĨĞĞƚ͘dŚĞƐŽŝůĐƵƚǁŽƵůĚ ďĞϮϲ͕ϲϬϲĐƵďŝĐ ǇĂƌĚƐ;ĐǇͿĂŶĚĨŝůůǁŽƵůĚ ĂůƐŽďĞϮϲ͕ϲϬϲĐǇ͘ƐƐƵĐŚ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐĂŶƚŝĐŝƉĂƚĞĚƚŽďĂůĂŶĐĞŽŶͲƐŝƚĞĂŶĚ ŶŽŶĞĞĚĨŽƌƐŽŝůŝŵƉŽƌƚŽƌĞǆƉŽƌƚŝƐĂŶƚŝĐŝƉĂƚĞĚ͖ƌĞĨĞƌƚŽ ǆŚŝďŝƚϲ͕ŽŶĐĞƉƚƵĂů'ƌĂĚŝŶŐWůĂŶ͘
Ϯ͘Ϯ͘ϱ ^ŝƚĞƌĂŝŶĂŐĞ
dŚĞƌĞĂƌĞĨŝǀĞ ;ϱͿŽŶƐŝƚĞĐĂƚĐŚďĂƐŝŶƐǁŚŝĐŚ ĐŽŶǀĞǇ ƐƚŽƌŵǁĂƚĞƌǀŝĂϭϮ͟Ͳϭϴ͟ ŚŝŐŚͲĚĞŶƐŝƚǇƉŽůǇĞƚŚǇůĞŶĞ ;,W
ͿƉŝƉĞƐŝŶƚŽϮϬϲƵŶĚĞƌŐƌŽƵŶĚŝŶĨŝůƚƌĂƚŝŽŶĐŚĂŵďĞƌƐƚŽƚƌĞĂƚƚŚĞƐƚŽƌŵǁĂƚĞƌ͘ĞƉĞŶĚŝŶŐŽŶƚŚĞƐŝǌĞ ŽĨƚŚĞƐƚŽƌŵĞǀĞŶƚ͕ƚŚĞƐƚŽƌŵǁĂƚĞƌŝƐĞŝƚŚĞƌ;ϭͿĞŶƚŝƌĞůǇĐŽŶǀĞǇĞĚŝŶƚŽ ƚŚĞƐƚŽƌŵĐŚĂŵďĞƌƐǁŚĞƌĞŝƚŝƐ ƚƌĞĂƚĞĚďǇƉĞƌĐŽůĂƚŝŶŐŝŶƚŽƚŚĞƐŽŝů͕Žƌ;ϮͿƚŚĞϴϱƚŚƉĞƌĐĞŶƚŝůĞƉĞƌĐŽůĂƚĞƐŝŶƚŽƚŚĞƐŽŝůǁŝƚŚƚŚĞĞǆĐĞƐƐďĞŝŶŐ ĚŝƐĐŚĂƌŐĞĚĚŝƌĞĐƚůǇŽŶƚŽ ŽŶ sŝĞǁǀĞŶƵĞ;ƚŚĞƌĞŝƐŶŽ ĞǆŝƐƚŝŶŐƉƵďůŝĐ ƐƚŽƌŵĚƌĂŝŶƚŽ ƚŝĞͲŝŶƚŽͿƚŚƌŽƵŐŚ ƚǁŽ;ϮͿϰ͛Ͳϱ͛ƉĂƌŬǁĂǇĚƌĂŝŶƐ͖ƌĞĨĞƌƚŽ
ǆŚŝďŝƚϲ͕ŽŶĐĞƉƚƵĂů'ƌĂĚŝŶŐWůĂŶ͘
Ϯ͘ϯ ŽŶƐƚƌƵĐƚŝŽŶ^ĐŚĞĚƵůĞ
ŽŶƐƚƌƵĐƚŝŽŶŝƐĂŶƚŝĐŝƉĂƚĞĚƚŽďĞŐŝŶŝŶ:ƵůǇϮϬϮϮĂŶĚŝƐĂŶƚŝĐŝƉĂƚĞĚƚŽƌĞƋƵŝƌĞŶŝŶĞ;ϵͿŵŽŶƚŚƐ͕ĐŽŶĐůƵĚŝŶŐ ŝŶƉƌŝůϮϬϮϯ;ĞƐƚ͘Ϳ͘
Ϯ͘ϰ WƌŽũĞĐƚƉƉƌŽǀĂůƐ
dŚĞŝƚǇŝƐƚŚĞ>ĞĂĚŐĞŶĐǇĂƐƐĞƚĨŽƌƚŚŝŶ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϬϲϳĂŶĚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƌĞǀŝĞǁŝŶŐ ĂŶĚĂƉƉƌŽǀŝŶŐƚŚĞĚĚĞŶĚƵŵƚŽdŚĞKŶƚĂƌŝŽWůĂŶKŶƚĂƌŝŽ'W /Z͘/ŶĂĚĚŝƚŝŽŶƚŽƚŚĞĚĚĞŶĚƵŵ͕ƚŚĞŝƚǇ
ǁŝůůĐŽŶƐŝĚĞƌƚŚĞĨŽůůŽǁŝŶŐĚŝƐĐƌĞƚŝŽŶĂƌǇĂƉƉƌŽǀĂůƐĨŽƌƚŚĞWƌŽũĞĐƚ͗ x ĞǀĞůŽƉŵĞŶƚWůĂŶͲĞƐŝŐŶŽĨƚŚĞƉƌŽƉŽƐĞĚƐŝƚĞĂŶĚďƵŝůĚŝŶŐŝŵƉƌŽǀĞŵĞŶƚƐ͘ 120
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϲ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
x >Žƚ>ŝŶĞ ĚũƵƐƚŵĞŶƚ;>>ͿͲ ŽŶƐŽůŝĚĂƚŝŽŶ ŽĨ ƚŚƌĞĞ ;ϯͿ ƉĂƌĐĞůƐ ;ĐƵƌƌĞŶƚůǇ ϱϱ WE͛ƐĚƵĞ ƚŽĂŶ ĞǆŝƐƚŝŶŐ͕ƌĞĐŽƌĚĞĚĐŽŶĚŽŵŝŶŝƵŵ ƉůĂŶƚŚĂƚŝƐ ƚŽďĞƌĞŵŽǀĞĚ ƉƌŝŽƌƚŽ ƚŚĞWƌŽũĞĐƚ͛Ɛ ĐŽŶƐƚƌƵĐƚŝŽŶĐŽŵŵĞŶĐĞŵĞŶƚͿŝŶƚŽŽŶĞƉĂƌĐĞů͘
x ŽŶĞŚĂŶŐĞʹZĞǌŽŶĞŽĨƐŽƵƚŚĞƌůǇƉĂƌĐĞůƚŽƚĂůŝŶŐцϮ͘ϵϬŶĞƚĂĐƌĞƐ;WEEŽ͘ϭϬϱϬͲϰϰϭͲϬϱͿĨƌŽŵ >ŝŐŚƚ/ŶĚƵƐƚƌŝĂů;/>ͿƚŽ'ĞŶĞƌĂů/ŶĚƵƐƚƌŝĂů;/'ͿƚŽƌĞŵŽǀĞƚŚĞĞǆŝƐƚŝŶŐ͞ƐƉůŝƚ͟ǌŽŶŝŶŐŽŶƚŚĞWƌŽũĞĐƚ ƐŝƚĞ͘
x ĞƌƚŝĨŝĐĂƚĞ ŽĨƉƉƌŽƉƌŝĂƚĞŶĞƐƐʹŶĂůǇƐŝƐŽĨƚŚĞĂƉƉƌŽǆ͘ϭ͕ϬϬϴƐƋƵĂƌĞĨŽŽƚďƵŝůĚŝŶŐ ůŽĐĂƚĞĚ Ăƚϭϵϰϴ ^͘ ŽŶ sŝĞǁ ǀĞŶƵĞ ;WE EŽ͘ ϭϬϱϬͲϰϰϭͲϬϱͿ ĂƐ Ă ŚŝƐƚŽƌŝĐ ƌĞƐŽƵƌĐĞ͕ ĂŶĚ ƚŚĞ ƌĞƋƵŝƌĞĚƚƌĞĂƚŵĞŶƚƚŚĞƌĞŽĨ͘
121
Not to scale
Source: Google MapsExhibit 1: Regional Location MapBon View Project City of Ontario Project Site
122
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϴ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘

123
Not to scale
Source: Google EarthExhibit 2: Project Vicinity MapBon View Project City of Ontario E Cedar St
E
E Cedar St
Francis St E Francis St
E Spruce St E Spruce St
E Boxwood Ct E Boxwood Ct
E Birch Ct E Birch Ct
S Campus Ave Campus Ave S Bon View Ave Bon View Ave S Cucamonga Ave Cucamonga Ave 124
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϭϬ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘

125
Not to scale Exhibit 3: Conceptual Site Plan
Bon View Project City of Ontario

PROJECT INFORMATION
126
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϭϮ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘

127
Not to scale Exhibit 4: Conceptual Elevations
Bon View Project City of Ontario
Elevations : Elevations Conceptua 1Col: 128
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϭϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘

129
Not to scale Exhibit 4: Conceptual Elevations
Bon View Project City of Ontario
Elevations : Elevations Conceptua 1Col:2Elevations Conceptual : Elevations Conceptua Conceptual levations evations onceptual Elevations onceptual E Conceptua 130
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϭϲ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘

131
Not to scale Exhibit 5: Conceptual Landscape Plan
Bon View Project City of Ontario
132
ĞƐĐƌŝƉƚŝŽŶŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϭϴ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘
133
Not to scale Exhibit 6: Conceptual Grading Plan
Bon View Project City of Ontario
134

ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚŶĂůǇƐŝƐ^ƵŵŵĂƌǇ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϮϬ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘
135

ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚŶĂůǇƐŝƐ^ƵŵŵĂƌǇ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z Ϯϭ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϯ d,
KEdZ/KW>E
/Z
Es/ZKED
Ed>/DWdE>z^/^^hDDZz
dŚĞĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚĨŝŶĚŝŶŐƐŽĨƚŚĞKŶƚĂƌŝŽ'W
/ZĂƌĞƐƵŵŵĂƌŝǌĞĚďĞůŽǁ͘
EŽ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĚĞƚĞƌŵŝŶĞĚƚŚĂƚŶŽ ŝŵƉĂĐƚǁŽƵůĚ ŽĐĐƵƌǁŝƚŚ ƌĞƐƉĞĐƚƚŽƚŚĞĨŽůůŽǁŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚĂůƚŽƉŝĐĂƌĞĂƐďĞůŽǁ͘dŚĞƐĞŝŵƉĂĐƚƐǁĞƌĞŝŶĐůƵĚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͛Ɛ͞
ĨĨĞĐƚƐ&ŽƵŶĚEŽƚ
dŽĞ^ŝŐŶŝĨŝĐĂŶƚ;
&Ed^Ϳ͟ƐĞĐƚŝŽŶ;^ĞĐƚŝŽŶϴ͘ϬŽĨƚŚĞƌĂĨƚ
/ZͿ͘
x ĞƐƚŚĞƚŝĐƐ;
&Ed^/;ďͿͿ͖
x ,ĂǌĂƌĚƐĂŶĚ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐ;
&Ed^s//;ĨͿͿ͖ĂŶĚ
x EŽŝƐĞ;
&Ed^y/;ĨͿͿ͘
>ĞƐƐdŚĂŶ^ŝŐŶŝĨŝĐĂŶƚ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZŝĚĞŶƚŝĨŝĞĚůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐŝŶƚŚĞĨŽůůŽǁŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚĂůƚŽƉŝĐĂƌĞĂƐ͗
x ĞƐƚŚĞƚŝĐƐ;/ŵƉĂĐƚƐϱ͘ϭ͘ϭƚŚƌŽƵŐŚϱ͘ϭ͘ϯͿ͖
x ŝƌYƵĂůŝƚǇ;/ŵƉĂĐƚϱ͘ϯͲϰͿ͖
x ŝŽůŽŐŝĐĂůZĞƐŽƵƌĐĞƐ;/ŵƉĂĐƚƐϱ͘ϰͲϭƚŚƌŽƵŐŚϱ͘ϰͲϱͿ͖
x ƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ;/ŵƉĂĐƚϱ͘ϱͲϯͿ͖
x 'ĞŽůŽŐǇĂŶĚ^ŽŝůƐ;/ŵƉĂĐƚƐϱ͘ϳͲϭƚŚƌŽƵŐŚϱ͘ϳͲϯͿ͖
x ,ĂǌĂƌĚƐĂŶĚ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐ;/ŵƉĂĐƚƐϱ͘ϴͲϭƚŚƌŽƵŐŚϱ͘ϴͲϲͿ͖ x ,ǇĚƌŽůŽŐǇĂŶĚtĂƚĞƌYƵĂůŝƚǇ;/ŵƉĂĐƚƐϱ͘ϵͲϭƚŚƌŽƵŐŚϱ͘ϵͲϲͿ͖ x >ĂŶĚhƐĞĂŶĚWůĂŶŶŝŶŐ;/ŵƉĂĐƚƐϱ͘ϭϬͲϭƚŚƌŽƵŐŚϱ͘ϭϬͲϯͿ͖ x DŝŶĞƌĂůZĞƐŽƵƌĐĞƐ;/ŵƉĂĐƚϱ͘ϭϭͲϭͿ͖
x WŽƉƵůĂƚŝŽŶĂŶĚ,ŽƵƐŝŶŐ;/ŵƉĂĐƚƐϱ͘ϭϯͲϭ͕ϱ͘ϭϯͲϮͿ͖
x WƵďůŝĐ^ĞƌǀŝĐĞƐ;/ŵƉĂĐƚƐϱ͘ϭϰͲϭƚŚƌŽƵŐŚϱ͘ϭϰͲϰͿ͖
x ZĞĐƌĞĂƚŝŽŶ;/ŵƉĂĐƚƐϱ͘ϭϱͲϭ͕ϱ͘ϭϱͲϮͿ͖
x dƌĂŶƐƉŽƌƚĂƚŝŽŶͬdƌĂĨĨŝĐ;/ŵƉĂĐƚƐϱ͘ϭϲͲϮƚŚƌŽƵŐŚϱ͘ϭϲͲϱͿ͖ĂŶĚ x hƚŝůŝƚŝĞƐĂŶĚ^ĞƌǀŝĐĞ^ǇƐƚĞŵƐ;/ŵƉĂĐƚƐϱ͘ϭϳͲϮƚŚƌŽƵŐŚϱ͘ϭϳͲϱͿ͘ >ĞƐƐdŚĂŶ^ŝŐŶŝĨŝĐĂŶƚ/ŵƉĂĐƚǁŝƚŚ/ŶĐŽƌƉŽƌĂƚŝŽŶŽĨDŝƚŝŐĂƚŝŽŶ͗dŚĞKŶƚĂƌŝŽ'W /ZŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐƚŚĂƚ
ĐŽƵůĚďĞŵŝƚŝŐĂƚĞĚƚŽůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚůĞǀĞůƐǁŝƚŚŝŶĐŽƌƉŽƌĂƚŝŽŶŽĨŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŝŶƚŚĞĨŽůůŽǁŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚĂůƚŽƉŝĐĂƌĞĂƐ͗
x ƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ;/ŵƉĂĐƚϱ͘ϱͲϮͿ͖
x EŽŝƐĞ;/ŵƉĂĐƚϱ͘ϭϮͲϰͿ͖ĂŶĚ
x hƚŝůŝƚŝĞƐĂŶĚ^ĞƌǀŝĐĞ^ǇƐƚĞŵƐ;/ŵƉĂĐƚϱ͘ϭϳͲϭͿ͘
^ŝŐŶŝĨŝĐĂŶƚĂŶĚhŶĂǀŽŝĚĂďůĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞŝŵƉĂĐƚƐŝŶ
ƚŚĞĨŽůůŽǁŝŶŐĞŶǀŝƌŽŶŵĞŶƚĂůƚŽƉŝĐĂƌĞĂƐ͗
x ŐƌŝĐƵůƚƵƌĞZĞƐŽƵƌĐĞƐ;/ŵƉĂĐƚƐϱ͘ϮͲϭƚŚƌŽƵŐŚϱ͘ϮͲϯͿ͖ x ŝƌYƵĂůŝƚǇ;/ŵƉĂĐƚƐϱ͘ϯͲϭ͕ϱ͘ϯͲϮ͕ϱ͘ϯͲϯ͕ϱ͘ϯͲϱ͕ϱ͘ϯͲϲͿ͖ 136

ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚŶĂůǇƐŝƐ^ƵŵŵĂƌǇ
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϮϮ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
x ƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ;/ŵƉĂĐƚϱ͘ϱͲϭͿ͖
x 'ůŽďĂůůŝŵĂƚĞŚĂŶŐĞ;/ŵƉĂĐƚϱ͘ϲͲϭͿ͖
x EŽŝƐĞ;/ŵƉĂĐƚϱ͘ϭϮͲϭ͕ϱ͘ϭϮͲϮ͕ϱ͘ϭϮͲϯ͕ϱ͘ϭϮͲϱ͕ϱ͘ϭϮͲϲͿ͖ĂŶĚ x dƌĂŶƐƉŽƌƚĂƚŝŽŶͬdƌĂĨĨŝĐ;/ŵƉĂĐƚϱ͘ϭϲͲϭͿ͘
137
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z Ϯϯ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ KE s/
t s
Eh
tZ
,Kh^
WZK:
d
Es/ZKED
Ed> /DWd
E>z^/^EWZK:
dWWZKs>^
dŚĞƐĐŽƉĞŽĨƚŚĞŝƚǇ͛ƐƌĞǀŝĞǁŽĨƚŚĞWƌŽũĞĐƚŝƐƐĞƚĨŽƌƚŚŝŶ YĂŶĚƚŚĞ
Y'ƵŝĚĞůŝŶĞƐ͘dŚŝƐƌĞǀŝĞǁŝƐ
ůŝŵŝƚĞĚƚŽĞǀĂůƵĂƚŝŶŐƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚǁŚĞŶĐŽŵƉĂƌĞĚƚŽƚŚĞKŶƚĂƌŝŽ 'WĂƐƐĞƚĨŽƌƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚŝƐĚĚĞŶĚƵŵĂůƐŽƌĞǀŝĞǁƐŶĞǁŝŶĨŽƌŵĂƚŝŽŶ͕ŝĨĂŶǇ͕ŽĨƐƵďƐƚĂŶƚŝĂů ŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶ ĂŶĚĐŽƵůĚ ŶŽƚ ŚĂǀĞďĞĞŶ ŬŶŽǁŶ ǁŝƚŚƚŚĞĞǆĞƌĐŝƐĞŽĨ ƌĞĂƐŽŶĂďůĞĚƵĞ ĚŝůŝŐĞŶĐĞ ĂƚƚŚĞƚŝŵĞ ƚŚĞKŶƚĂƌŝŽ'W
/ZǁĂƐĐĞƌƚŝĨŝĞĚ͘dŚŝƐĞǀĂůƵĂƚŝŽŶ ŝŶĐůƵĚĞƐ ĂĚĞƚĞƌŵŝŶĂƚŝŽŶĂƐƚŽ ǁŚĞƚŚĞƌƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚĨŽƌƚŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶĂŶǇŶĞǁƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐŽƌŵŽƌĞƐĞǀĞƌĞ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ͘
ůƚŚŽƵŐŚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϰĚŽĞƐŶŽƚƐƚŝƉƵůĂƚĞƚŚĞĨŽƌŵĂƚŽƌĐŽŶƚĞŶƚŽĨĂŶĚĚĞŶĚƵŵ͕ƚŚĞ ƚŽƉŝĐĂůĂƌĞĂƐŝĚĞŶƚŝĨŝĞĚŝŶ dŚĞKŶƚĂƌŝŽWůĂŶ
/ZǁĞƌĞƵƐĞĚĂƐŐƵŝĚĂŶĐĞĨŽƌƚŚŝƐĚĚĞŶĚƵŵ͘/ŶĂĚĚŝƚŝŽŶ͕ ^ĞĐƚŝŽŶϭϱϭϲϰ;ĞͿŽĨƚŚĞ
Y'ƵŝĚĞůŝŶĞƐƐƚĂƚĞƐƚŚĂƚ͞ďƌŝĞĨĞǆƉůĂŶĂƚŝŽŶŽĨƚŚĞĚĞĐŝƐŝŽŶŶŽƚƚŽƉƌĞƉĂƌĞĂ ƐƵďƐĞƋƵĞŶƚ
/ZƉƵƌƐƵĂŶƚƚŽ^ĞĐƚŝŽŶϭϱϭϲϮƐŚŽƵůĚďĞŝŶĐůƵĚĞĚŝŶĂŶĂĚĚĞŶĚƵŵƚŽĂŶ /Z͕ƚŚĞůĞĂĚĂŐĞŶĐǇΖƐ
ĨŝŶĚŝŶŐƐŽŶ ƚŚĞWƌŽũĞĐƚ͕ŽƌĞůƐĞǁŚĞƌĞŝŶ ƚŚĞƌĞĐŽƌĚ͘dŚĞĞǆƉůĂŶĂƚŝŽŶŵƵƐƚďĞƐƵƉƉŽƌƚĞĚďǇ ƐƵďƐƚĂŶƚŝĂů ĞǀŝĚĞŶĐĞ͘͟dŚŝƐĐŽŵƉĂƌĂƚŝǀĞĂŶĂůǇƐŝƐƉƌŽǀŝĚĞƐƚŚĞŝƚǇǁŝƚŚƚŚĞĨĂĐƚƵĂůďĂƐŝƐĨŽƌĚĞƚĞƌŵŝŶŝŶŐǁŚĞƚŚĞƌĂŶǇ ĐŚĂŶŐĞƐŝŶƚŚĞWƌŽũĞĐƚ͕ĂŶǇĐŚĂŶŐĞƐŝŶĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ŽƌĂŶǇŶĞǁŝŶĨŽƌŵĂƚŝŽŶƐŝŶĐĞƚŚĞKŶƚĂƌŝŽ'W /Z
ǁĂƐĐĞƌƚŝĨŝĞĚǁŽƵůĚƌĞƋƵŝƌĞĂĚĚŝƚŝŽŶĂůĞŶǀŝƌŽŶŵĞŶƚĂůƌĞǀŝĞǁŽƌƉƌĞƉĂƌĂƚŝŽŶŽĨĂŶ^ /Z͘
WƵƌƐƵĂŶƚƚŽ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ͕ƚŚĞŝƚǇŚĂƐĚĞƚĞƌŵŝŶĞĚ͕ŽŶƚŚĞďĂƐŝƐŽĨƐƵďƐƚĂŶƚŝĂůĞǀŝĚĞŶĐĞ ŝŶƚŚĞůŝŐŚƚŽĨƚŚĞǁŚŽůĞƌĞĐŽƌĚ͕ƚŚĂƚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚĚŽĞƐŶŽƚƉƌŽƉŽƐĞƐƵďƐƚĂŶƚŝĂůĐŚĂŶŐĞƐ ƚŽƚŚĞKŶƚĂƌŝŽ'W
/Z͕ŶŽƐƵďƐƚĂŶƚŝĂůĐŚĂŶŐĞƐŝŶĐŝƌĐƵŵƐƚĂŶĐĞƐǁŽƵůĚŽĐĐƵƌǁŚŝĐŚǁŽƵůĚƌĞƋƵŝƌĞŵĂũŽƌ ƌĞǀŝƐŝŽŶƐƚŽƚŚĞKŶƚĂƌŝŽ'W
/Z͕ĂŶĚŶŽ ŶĞǁŝŶĨŽƌŵĂƚŝŽŶ ŽĨ ƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞŚĂƐďĞĞŶ ƌĞǀĞĂůĞĚ ƐŝŶĐĞƚŚĞĐĞƌƚŝĨŝĐĂƚŝŽŶŽĨKŶƚĂƌŝŽ'W
/ZƚŚĂƚǁŽƵůĚƌĞƐƵůƚŝŶĞŝƚŚĞƌŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐŽƌĂŶŝŶĐƌĞĂƐĞ ŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨƉƌĞǀŝŽƵƐůǇĂŶĂůǇǌĞĚƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐ͘ DŝƚŝŐĂƚŝŽŶDŽŶŝƚŽƌŝŶŐĂŶĚZĞƉŽƌƚŝŶŐWƌŽŐƌĂŵ;DDZWͿǁĂƐĂĚŽƉƚĞĚĂƐĂƉĂƌƚŽĨƚŚĞKŶƚĂƌŝŽ'W /ZƚŚĂƚ
ŵŝŶŝŵŝǌĞĚŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'W /Z͘dŚĞƉƌĞǀŝŽƵƐůǇĂĚŽƉƚĞĚKŶƚĂƌŝŽ
'W
/ZŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƉƉůŝĐĂďůĞ ƚŽ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ĐŽůůĞĐƚŝǀĞůǇ ŝŵƉŽƐĞĚ ĂƐƚŚĞ WƌŽũĞĐƚ͛Ɛ DDZW͕ǁŚŝĐŚŝƐĐŽŶƚĂŝŶĞĚŝŶƉƉĞŶĚŝǆ͘

138
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z Ϯϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭ ĞƐƚŚĞƚŝĐƐ
ϰ͘ϭ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚĨƵƌƚŚĞƌĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞŝƚǇĂƐƉƌŽƉŽƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚ ŶŽƚŝŵƉĂĐƚƐĐĞŶŝĐǀŝƐƚĂƐĚƵĞƚŽĐŽŶƚŝŶƵĞĚĂĚŚĞƌĞŶĐĞƚŽƚŚĞĂƉƉůŝĐĂďůĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞKŶƚĂƌŝŽDƵŶŝĐŝƉĂů ŽĚĞ;KŶƚĂƌŝŽDͿĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞǀŝƐƵĂůĐŚĂƌĂĐƚĞƌŽĨƚŚĞŝƚǇǁŽƵůĚďĞĂĐĐĞŶƚƵĂƚĞĚ ǁŝƚŚ ƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞKŶƚĂƌŝŽ 'W ĂŶĚ ŝƚƐĂƐƐŽĐŝĂƚĞĚŽŵŵƵŶŝƚǇĞƐŝŐŶ ůĞŵĞŶƚĂƐǁĞůů ĂƐ
ĐŽŶƚŝŶƵĞĚ ĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞKŶƚĂƌŝŽDĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞKŶƚĂƌŝŽ 'W͛ƐĐŽŶƚŝŶƵĞĚ ĂĚŚĞƌĞŶĐĞƚŽ ƚŚĞKŶƚĂƌŝŽDĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚ ŽĚĞǁĂƐĂůƐŽĂŶƚŝĐŝƉĂƚĞĚƚŽ ĐƌĞĂƚĞĂůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĨƌŽŵƚŚĞĂĚǀĞƌƐĞŐĞŶĞƌĂƚŝŽŶŽĨůŝŐŚƚĂŶĚŐůĂƌĞ͘ /ŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƐĐĞŶŝĐƌĞƐŽƵƌĐĞƐ͕ůŽŶŐͲƚĞƌŵǀŝƐƵĂůĐŚĂƌĂĐƚĞƌ͕ĂŶĚůŝŐŚƚͬŐůĂƌĞǁĞƌĞĚĞƚĞƌŵŝŶĞĚƚŽ ďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘EŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐǁĞƌĞĚĞĞŵĞĚŶĞĐĞƐƐĂƌǇ͘ ϰ͘ϭ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ ,ĂǀĞĂƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĞĨĨĞĐƚŽŶĂƐĐĞŶŝĐǀŝƐƚĂ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϭͲϭ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚƐ͗dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚŚĂǀĞĂŵŽƌĞƐĞǀĞƌĞŽƌƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĞĨĨĞĐƚ ŽŶĂƐĐĞŶŝĐǀŝƐƚĂƚŚĂŶǁŚĂƚǁĂƐŽƌŝŐŝŶĂůůǇĂŶĂůǇǌĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘dŚĞKŶƚĂƌŝŽ'W
/ZĐŝƚĞĚƚŚĞ^ĂŶ
'ĂďƌŝĞůDŽƵŶƚĂŝŶƐĂƐƚŚĞŵĂŝŶƐĐĞŶŝĐǀŝƐƚĂǀŝƐŝďůĞĨƌŽŵ ƚŚĞŝƚǇ͘/ƚǁĂƐĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞŝŶĐůƵƐŝŽŶŽĨ ƉƌŽǀŝƐŝŽŶƐ ƌĞƋƵŝƌŝŶŐ ƌĞƚĞŶƚŝŽŶ ŽĨ ƐŝŐŶŝĨŝĐĂŶƚŶĂƚƵƌĂů ĨĞĂƚƵƌĞƐ ĂŶĚ ŽƉĞŶ ƐƉĂĐĞ ƉƌĞƐĞƌǀĂƚŝŽŶ ŽĨ ǀŝĞǁƐ͕ ĐŽŶƚŽƵƌŐƌĂĚŝŶŐ͕ŶĂƚƵƌĂůůĂŶĚƐĐĂƉŝŶŐ͕ĂŶĚĂƌĐŚŝƚĞĐƚƵƌĂůĚĞƐŝŐŶƚŚĂƚďůĞŶĚƐǁŝƚŚƚŚĞŶĂƚƵƌĂůƚĞƌƌĂŝŶŽĨƚŚĞ ŝƚǇǁŽƵůĚĞŶƐƵƌĞƚŚĂƚĨƵƚƵƌĞĚĞǀĞůŽƉŵĞŶƚǁŽƵůĚŶŽƚŝŶƚĞƌĨĞƌĞǁŝƚŚƚŚĞǀŝĞǁƐŽĨƚŚĞŝƚǇ͛ƐƐĐĞŶŝĐǀŝƐƚĂ͘ dŚĞ^ĂŶ'ĂďƌŝĞůDŽƵŶƚĂŝŶƐĂƌĞǀŝƐŝďůĞŶŽƌƚŚŽĨƚŚĞŝƚǇĂŶĚWƌŽũĞĐƚƐŝƚĞ͘,ŽǁĞǀĞƌ͕ǀŝĞǁƐŽĨƚŚĞ^ĂŶ'ĂďƌŝĞů DŽƵŶƚĂŝŶƐĂƌĞĐƵƌƌĞŶƚůǇŽďƐƚƌƵĐƚĞĚďǇĞǆŝƐƚŝŶŐĚĞǀĞůŽƉŵĞŶƚ͘ƐĚĞƐĐƌŝďĞĚŝŶ^ĞĐƚŝŽŶϮ͘ϭ͕WƌŽũĞĐƚ^ĞƚƚŝŶŐ ĂŶĚ>ŽĐĂƚŝŽŶ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞĚĞǀĞůŽƉĞĚ ǁŝƚŚŝŶĂŶ ĂƌĞĂƚŚĂƚŚĂƐďĞĞŶƉƌĞǀŝŽƵƐůǇ ĚĞǀĞůŽƉĞĚ ĨŽƌ ŝŶĚƵƐƚƌŝĂů ĂŶĚ ǁĂƌĞŚŽƵƐŝŶŐƵƐĞƐ͘ dŚŝƐ ĂƌĞĂ ŝƐ ŚĞĂǀŝůǇ ĚĞǀĞůŽƉĞĚ ǁŝƚŚŵƵůƚŝƉůĞ ǁĂƌĞŚŽƵƐŝŶŐ ďƵŝůĚŝŶŐƐ ǁŝƚŚŝŶƚŚĞWƌŽũĞĐƚƐŝƚĞĂƐǁĞůůĂƐĂĚũĂĐĞŶƚƚŽƚŚĞWƌŽũĞĐƚƐŝƚĞƚŽƚŚĞŶŽƌƚŚ͕ƐŽƵƚŚ͕ĞĂƐƚ͕ĂŶĚǁĞƐƚ͘ ĞǀĞůŽƉŵĞŶƚ ŽĨ ƚŚĞ WƌŽũĞĐƚǁŽƵůĚ ďĞ ƌĞƋƵŝƌĞĚ ƚŽ ĐŽŵƉůǇ ǁŝƚŚ ĞƐƚĂďůŝƐŚĞĚŝƚǇƌĞŐƵůĂƚŝŽŶƐƌĞŐĂƌĚŝŶŐ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ďƵŝůĚŝŶŐ ĚŝŵĞŶƐŝŽŶƐ͘ dŚŝƐ ŝŶĐůƵĚĞƐ ƚŚŽƐĞ ƉƌĞƐĞŶƚĞĚŝŶ KŶƚĂƌŝŽ ĞǀĞůŽƉŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶϲ͘Ϭϭ͘ϬϮϱĨŽƌŝŶĚƵƐƚƌŝĂůǌŽŶŝŶŐĚŝƐƚƌŝĐƚƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞǁŝƚŚŝŶƚŚĞĂĐĐĞƉƚĂďůĞƚŚƌĞƐŚŽůĚĨŽƌ ďƵŝůĚŝŶŐŚĞŝŐŚƚ͕ǁŚŝĐŚǁŽƵůĚŽƚŚĞƌǁŝƐĞĨƵƌƚŚĞƌŝŵƉĂĐƚǀŝĞǁƐŽĨƚŚĞ^ĂŶ'ĂďƌŝĞůDŽƵŶƚĂŝŶƐ͘ ĐĐŽƌĚŝŶŐůǇ͕ŶŽŶĞǁŝŵƉĂĐƚƐƌĞůĂƚŝǀĞƚŽĂĚǀĞƌƐĞĞĨĨĞĐƚƐŽŶĂƐĐĞŶŝĐǀŝƐƚĂŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞ ƐĞǀĞƌŝƚǇ ŽĨ Ă ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚ ĞǀĂůƵĂƚĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z ǁŽƵůĚ ŽĐĐƵƌ͘
ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶ ŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
/ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚŝŵƉĂĐƚƚŚĞƉƌŝŽƌĨŝŶĚŝŶŐŽĨŶŽ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘
139
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z Ϯϱ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚŝŶ ŶŽ ŶĞǁ ŽƌŵŽƌĞ ƐĞǀĞƌĞŝŵƉĂĐƚŽŶ Ă ƐĐĞŶŝĐǀŝƐƚĂ;ƐͿ͘ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/ZǁŝƚŚƌĞƐƉĞĐƚƚŽƐĐĞŶŝĐǀŝƐƚĂƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚĞ ĂƉƉůŝĐĂďůĞ ŐƵŝĚĞůŝŶĞƐ ĂŶĚ ƐƚĂŶĚĂƌĚƐ ǁŝƚŚŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W͕ KŶƚĂƌŝŽ D͕ ĂŶĚ KŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁĂŶĚͬŽƌ ŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽĂĞƐƚŚĞƚŝĐƐ͘
dŚƌĞƐŚŽůĚ;ďͿ ^ƵďƐƚĂŶƚŝĂůůǇ ĚĂŵĂŐĞ ƐĐĞŶŝĐ ƌĞƐŽƵƌĐĞƐ͕ ŝŶĐůƵĚŝŶŐ͕ďƵƚ ŶŽƚ ůŝŵŝƚĞĚ ƚŽ͕ ƚƌĞĞƐ͕ ƌŽĐŬ ŽƵƚĐƌŽƉƉŝŶŐƐ͕ ĂŶĚ ŚŝƐƚŽƌŝĐ ďƵŝůĚŝŶŐƐ ǁŝƚŚŝŶ Ă ƐĐĞŶŝĐ ŚŝŐŚǁĂǇ͍ ΀EŽƚ ĂŶĂůǇǌĞĚ ŝŶ KŶƚĂƌŝŽ'W
/Z΁
dŚƌĞƐŚŽůĚ;ĐͿ ŽŶĨůŝĐƚǁŝƚŚĂƉƉůŝĐĂďůĞǌŽŶŝŶŐĂŶĚŽƚŚĞƌƌĞŐƵůĂƚŝŽŶƐŐŽǀĞƌŶŝŶŐƐĐĞŶŝĐƋƵĂůŝƚǇ͍΀KŶƚĂƌŝŽ 'W
/Z/ŵƉĂĐƚϱ͘ϭͲϮ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚǁŝƚŚŝŶŽƌĂĚũĂĐĞŶƚƚŽĂƐĐĞŶŝĐŚŝŐŚǁĂǇ͘EŽĞůŝŐŝďůĞ ŽƌŽĨĨŝĐŝĂůůǇĚĞƐŝŐŶĂƚĞĚŚŝŐŚǁĂǇƐĞǆŝƐƚǁŝƚŚŝŶƚŚĞŝƚǇ͘ ϰ dŚĞWƌŽũĞĐƚǁŽƵůĚ ĐŚĂŶŐĞƚŚĞƐŝƚĞĂƉƉĞĂƌĂŶĐĞĨƌŽŵŚŽƐƚŝŶŐĨŽƵƌǁĂƌĞŚŽƵƐŝŶŐƐƚƌƵĐƚƵƌĞƐ͕ĂƌĞƐŝĚĞŶƚŝĂů ďƵŝůĚŝŶŐ͕ĂŶĚŽƵƚĚŽŽƌƐƚŽƌĂŐĞĂƌĞĂƐƚŽĂǁĂƌĞŚŽƵƐĞďƵŝůĚŝŶŐ͘dŚĞWƌŽũĞĐƚƐŝƚĞŝƐƐƵƌƌŽƵŶĚĞĚďǇůĂŶĚǌŽŶĞĚ ĨŽƌŝŶĚƵƐƚƌŝĂůƵƐĞǁŝƚŚĂ'ĞŶĞƌĂůWůĂŶůĂŶĚƵƐĞĚĞƐŝŐŶĂƚŝŽŶĨŽƌŝŶĚƵƐƚƌŝĂůƵƐĞ͘ĐĐŽƌĚŝŶŐůǇ͕ŶŽŶĞǁŝŵƉĂĐƚƐ ƌĞůĂƚŝǀĞƚŽ ĂĚǀĞƌƐĞĂĞƐƚŚĞƚŝĐŝŵƉĂĐƚƐŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨĂƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/ZǁŽƵůĚŽĐĐƵƌ͘ƐƉƌĞǀŝŽƵƐůǇ ƐƚĂƚĞĚ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ĐŽŵƉůǇ ǁŝƚŚ ƉŽůŝĐŝĞƐ ƉƌĞƐĞŶƚĞĚŝŶ ƚŚĞKŶƚĂƌŝŽ 'W ŽŵŵƵŶŝƚǇ ĞƐŝŐŶĞůĞŵĞŶƚ͘ ŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ ƉƌŽǀŝƐŝŽŶƐ ŽĨ ƚŚŝƐĞůĞŵĞŶƚ ǁŽƵůĚ ĞŶƐƵƌĞ ƚŚĂƚƚŚĞWƌŽũĞĐƚ ǁŽƵůĚ ďĞ ĚĞǀĞůŽƉĞĚ ǁŝƚŚ ŶŽƚ ŽŶůǇ ŵŽĚĞƌŶ ĂƌĐŚŝƚĞĐƚƵƌĂůĚĞƐŝŐŶƐĞŶƐŝďŝůŝƚŝĞƐĂŶĚŵĂƚĞƌŝĂůƐ͕ďƵƚĂůƐŽĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĞƐƚĂďůŝƐŚĞĚǀŝƐƵĂůĐŚĂƌĂĐƚĞƌ ŽĨƚŚĞĂƌĞĂ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐŽŶƚŚĞŝƚǇ͛ƐǀŝƐƵĂůĐŚĂƌĂĐƚĞƌŽƌƋƵĂůŝƚǇ͘ůĞƐƐ ƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /ZǁŝƚŚƌĞƐƉĞĐƚƚŽƐĐĞŶŝĐǀŝƐƚĂƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚ
ďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽĂĞƐƚŚĞƚŝĐƐ͘
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚƌĞƐŚŽůĚ;ĚͿ ƌĞĂƚĞĂŶĞǁƐŽƵƌĐĞŽĨƐƵďƐƚĂŶƚŝĂůůŝŐŚƚŽƌŐůĂƌĞ͕ǁŚŝĐŚǁŽƵůĚĂĚǀĞƌƐĞůǇĂĨĨĞĐƚĚĂǇŽƌ ŶŝŐŚƚƚŝŵĞǀŝĞǁƐŝŶƚŚĞĂƌĞĂ͍΀KŶƚĂƌŝŽ'W
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ƐƐƚĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͕ŝŵƉĂĐƚƐƌĞŐĂƌĚŝŶŐůŝŐŚƚĂŶĚŐůĂƌĞǁŽƵůĚ
ƌĞŵĂŝŶůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚĂƐůŽŶŐĂƐĨƵƚƵƌĞƉƌŽũĞĐƚƐĐŽŵƉůŝĞĚǁŝƚŚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ^ĞĐƚŝŽŶ ϲ͘Ϭϭ͘ϬϮϱ;ĐŝƚĞĚĂƐ^ĞĐƚŝŽŶϵͲϭ͘ϯϯϮϱŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͕ĂŶĚĂƐĂƉƉůŝĐĂďůĞ͕ĂůůĞǆƚĞƌŝŽƌůŝŐŚƚŝŶŐƐŚĂůůďĞĂĚĞƋƵĂƚĞůǇ ĐŽŶƚƌŽůůĞĚĂŶĚƐŚŝĞůĚĞĚƚŽƉƌĞǀĞŶƚŐůĂƌĞĂŶĚƵŶĚĞƐŝƌĂďůĞŝůůƵŵŝŶĂƚŝŽŶƚŽĂĚũĂĐĞŶƚƉƌŽƉĞƌƚŝĞƐŽƌƐƚƌĞĞƚƐ͘ ĚĞƋƵĂƚĞ ůŝŐŚƚŝŶŐůĞǀĞůƐ ƐŚĂůůďĞ ƉƌŽǀŝĚĞĚ ƚŽ ĞŶƐƵƌĞ ĂƐĂĨĞĞŶǀŝƌŽŶŵĞŶƚ͕ ǁŚŝůĞ ŶŽƚ ĐƌĞĂƚŝŶŐĂƌĞĂƐŽĨ ŝŶƚĞŶƐĞůŝŐŚƚŽƌŐůĂƌĞ͘>ŝŐŚƚĨŝǆƚƵƌĞƐĂŶĚƉŽůĞƐƐŚĂůůĂůƐŽďĞĚĞƐŝŐŶĞĚĂŶĚƉůĂĐĞĚŝŶĂŵĂŶŶĞƌĐŽŶƐŝƐƚĞŶƚ ĂŶĚĐŽŵƉĂƚŝďůĞǁŝƚŚŽǀĞƌĂůůƐŝƚĞĂŶĚďƵŝůĚŝŶŐĚĞƐŝŐŶ͕ĂŶĚŚŝŐŚͲŝŶƚĞŶƐŝƚǇƐĞĐƵƌŝƚǇůŝŐŚƚŝŶŐĨŝǆƚƵƌĞƐƐŚĂůůŶŽƚ ďĞƐƵďƐƚŝƚƵƚĞĚĨŽƌƐŝƚĞŽƌůĂŶĚƐĐĂƉĞůŝŐŚƚŝŶŐŽƌŐĞŶĞƌĂůďƵŝůĚŝŶŐĞǆƚĞƌŝŽƌŝůůƵŵŝŶĂƚŝŽŶ͕ďƵƚƐŚĂůůďĞůŝŵŝƚĞĚ ƚŽ ůŽĂĚŝŶŐ ĂŶĚ ƐƚŽƌĂŐĞůŽĐĂƚŝŽŶƐ Žƌ ŽƚŚĞƌ ƐŝŵŝůĂƌ ƐĞƌǀŝĐĞ ĂƌĞĂƐ͘/Ŷ ĂĚĚŝƚŝŽŶ͕ Ăůů ůŝŐŚƚŝŶŐ ƉƌŽǀŝĚĞĚ ƚŽ ŝůůƵŵŝŶĂƚĞ ƉĂƌŬŝŶŐ ĂƌĞĂƐ Žƌ ďƵŝůĚŝŶŐƐ ƐŚĂůů ďĞ ƉŽƐŝƚŝŽŶĞĚ ƐŽ ĂƐ ƚŽ ĚŝƌĞĐƚ ůŝŐŚƚ ĂǁĂǇ ĨƌŽŵ ĂĚũŽŝŶŝŶŐ ƉƌŽƉĞƌƚŝĞƐ͘
dŚĞƐĞƌĞŐƵůĂƚŝŽŶƐĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞĞŝƚŚĞƌĚĞƐŝŐŶŵĞĂƐƵƌĞƐŽƌĞǆŝƐƚŝŶŐƌĞŐƵůĂƚŝŽŶƐƉƵƌƐƵĂŶƚƚŽ Y
ƐƚĂŶĚĂƌĚƐ͘/ŶĐŽƌƉŽƌĂƚŝŽŶŽĨƐƵĐŚĨĞĂƚƵƌĞƐŝŶƚŽƚŚĞWƌŽũĞĐƚǁŽƵůĚĞŶƐƵƌĞƉƌŽƉĞƌĚĞƐŝŐŶ͕ŝŶƐƚĂůůĂƚŝŽŶ͕ĂŶĚ ŽƉĞƌĂƚŝŽŶŽĨ ĂůůĞǆƚĞƌŝŽƌůŝŐŚƚŝŶŐ͕ƚŚĞƌĞďǇƌĞĚƵĐŝŶŐƚŚĞƉŽƚĞŶƚŝĂůĨŽƌŐůĂƌĞĞĨĨĞĐƚƐŽƌůŝŐŚƚƐƉŝůůŽǀĞƌŽŶƚŽ ĂĚũĂĐĞŶƚƉƌŽƉĞƌƚŝĞƐ͘ƐƐƵĐŚ͕ĐŽŶƐŝƐƚĞŶĐǇǁŝƚŚ ƚŚĞKŶƚĂƌŝŽDĂŶĚKŶƚĂƌŝŽ ĞǀĞůŽƉŵĞŶƚŽĚĞ ǁŽƵůĚ ĞŶƐƵƌĞƚŚĂƚƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚůŝŐŚƚĂŶĚŐůĂƌĞǁŽƵůĚ ďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ŽŶƐŝƐƚĞŶƚ ǁŝƚŚƚŚĞKŶƚĂƌŝŽ'W
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ĐĐŽƌĚŝŶŐůǇ͕ ŶŽ ŶĞǁ Žƌ ŵŽƌĞ ƐĞǀĞƌĞ ŝŵƉĂĐƚƐ ƌĞůĂƚŝǀĞ ƚŽ ĂĚǀĞƌƐĞ ĂĞƐƚŚĞƚŝĐ ŝŵƉĂĐƚƐ ǁŽƵůĚ ŽĐĐƵƌ͘ ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶ ŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚ ƌĞƐƵůƚŝŶŶŽ ŶĞǁ ŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐĨƌŽŵůŝŐŚƚŽƌ ŐůĂƌĞ͘EŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ůŝŐŚƚ ĂŶĚ ŐůĂƌĞ ĂƌĞŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z͘dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ĚĞƐŝŐŶĞĚ
ĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽDĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚ ŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ ŶŽ ŶĞǁ ĂŶĚͬŽƌ ŵŽĚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐ ĂƌĞ ƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐ ƌĞůĂƚĞĚ ƚŽ ĂĞƐƚŚĞƚŝĐƐ͘
KǀĞƌĂůůĞƐƚŚĞƚŝĐƐ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚƚŚĞ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ
ŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐǁŝƚŚƌĞƐƉĞĐƚƚŽĂĞƐƚŚĞƚŝĐƐ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨĂ ^
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141
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘Ϯ ŐƌŝĐƵůƚƵƌĂůĂŶĚ&ŽƌĞƐƚƌǇZĞƐŽƵƌĐĞƐ
ϰ͘Ϯ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞŝƚǇŽĨKŶƚĂƌŝŽ 'W
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dŚƌĞƐŚŽůĚ;ĂͿ ŽŶǀĞƌƚ WƌŝŵĞ &ĂƌŵůĂŶĚ͕hŶŝƋƵĞ&ĂƌŵůĂŶĚ͕ Žƌ &ĂƌŵůĂŶĚ ŽĨ ^ƚĂƚĞǁŝĚĞ/ŵƉŽƌƚĂŶĐĞ ;&ĂƌŵůĂŶĚͿ͕ĂƐƐŚŽǁŶŽŶƚŚĞŵĂƉƐƉƌĞƉĂƌĞĚƉƵƌƐƵĂŶƚƚŽƚŚĞ&ĂƌŵůĂŶĚDĂƉƉŝŶŐĂŶĚ DŽŶŝƚŽƌŝŶŐWƌŽŐƌĂŵ ŽĨ ƚŚĞ ĂůŝĨŽƌŶŝĂ ZĞƐŽƵƌĐĞƐŐĞŶĐǇ͕ƚŽ ŶŽŶ ͲĂŐƌŝĐƵůƚƵƌĂů ƵƐĞ͍ ΀KŶƚĂƌŝŽ'W
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dŚƌĞƐŚŽůĚ;ĐͿ ŽŶĨůŝĐƚǁŝƚŚĞǆŝƐƚŝŶŐǌŽŶŝŶŐĨŽƌ͕ŽƌĐĂƵƐĞƌĞǌŽŶŝŶŐŽĨ͕ĨŽƌĞƐƚůĂŶĚ;ĂƐĚĞĨŝŶĞĚŝŶWƵďůŝĐ ZĞƐŽƵƌĐĞƐŽĚĞƐĞĐƚŝŽŶϭϮϮϮϬ;ŐͿͿ͕ ƚŝŵďĞƌůĂŶĚ;ĂƐ ĚĞĨŝŶĞĚďǇWƵďůŝĐ ZĞƐŽƵƌĐĞƐŽĚĞ ƐĞĐƚŝŽŶϰϱϮϲͿ͕ŽƌƚŝŵďĞƌůĂŶĚǌŽŶĞĚdŝŵďĞƌůĂŶĚWƌŽĚƵĐƚŝŽŶ;ĂƐĚĞĨŝŶĞĚďǇ'ŽǀĞƌŶŵĞŶƚ ŽĚĞƐĞĐƚŝŽŶϱϭϭϬϰ;ŐͿͿ͍΀EŽƚĂŶĂůǇǌĞĚŝŶKŶƚĂƌŝŽ'W
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YƉƉĞŶĚŝǆ'
dŚƌĞƐŚŽůĚ΁
dŚƌĞƐŚŽůĚ;ĚͿ ZĞƐƵůƚŝŶƚŚĞůŽƐƐŽĨ ĨŽƌĞƐƚůĂŶĚŽƌĐŽŶǀĞƌƐŝŽŶŽĨĨŽƌĞƐƚůĂŶĚƚŽŶŽŶ ͲĨŽƌĞƐƚƵƐĞ͍΀EŽƚ ĂŶĂůǇǌĞĚŝŶKŶƚĂƌŝŽ'W
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YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚ΁
dŚƌĞƐŚŽůĚ;ĞͿ /ŶǀŽůǀĞŽƚŚĞƌĐŚĂŶŐĞƐŝŶƚŚĞ ĞǆŝƐƚŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚǁŚŝĐŚ͕ĚƵĞƚŽ ƚŚĞŝƌ ůŽĐĂƚŝŽŶŽƌ ŶĂƚƵƌĞ͕ĐŽƵůĚƌĞƐƵůƚŝŶĐŽŶǀĞƌƐŝŽŶŽĨ&ĂƌŵůĂŶĚ͕ƚŽŶŽŶ ͲĂŐƌŝĐƵůƚƵƌĂůƵƐĞŽƌĐŽŶǀĞƌƐŝŽŶŽĨ ĨŽƌĞƐƚůĂŶĚƚŽŶŽͲĨŽƌĞƐƚůĂŶĚ͍΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϮͲϯ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞǀĞůŽƉĞĚ ŝŶĂƉŽƌƚŝŽŶŽĨƚŚĞŝƚǇĚĞƐŝŐŶĂƚĞĚĨŽƌ ŝŶĚƵƐƚƌŝĂůůĂŶĚƵƐĞƐ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞƉĂƌĐĞůƐŝŶǁŚŝĐŚƚŚĞWƌŽũĞĐƚǁŽƵůĚŽĐĐƵƉǇĂƌĞĐƵƌƌĞŶƚůǇĚĞǀĞůŽƉĞĚ ĨŽƌŝŶĚƵƐƚƌŝĂůĂŶĚǁĂƌĞŚŽƵƐŝŶŐƵƐĞƐ͘dŚĞƉĂƌĐĞůƐĂƌĞĂůƐŽĐƵƌƌĞŶƚůǇǌŽŶĞĚĨŽƌ'ĞŶĞƌĂů/ŶĚƵƐƚƌŝĂů;/'ͿĂŶĚ >ŝŐŚƚ/ŶĚƵƐƚƌŝĂů;/>ͿƵƐĞƐǁŚŝĐŚĚŽŶŽƚŝŶĐůƵĚĞĂŐƌŝĐƵůƚƵƌĞŽƌĨŽƌĞƐƚƌǇ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞǁŽƵůĚŶŽƚ ďĞƐƵŝƚĂďůĞĨŽƌĚĞƐŝŐŶĂƚŝŽŶĂƐWƌŝŵĞ&ĂƌŵůĂŶĚ͕hŶŝƋƵĞ&ĂƌŵůĂŶĚ͕&ĂƌŵůĂŶĚŽĨ ^ƚĂƚĞǁŝĚĞ/ŵƉŽƌƚĂŶĐĞ͕Žƌ tŝůůŝĂŵƐŽŶ ŽŶƚƌĂĐƚĂŐƌŝĐƵůƚƵƌĞ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞĚĞǀĞůŽƉĞĚ ƐƚĂƚĞŽĨ ƚŚĞ WƌŽũĞĐƚǁŽƵůĚ ŶŽƚĐĂƵƐĞŝƚƐ ƌĞĚĞǀĞůŽƉŵĞŶƚƚŽĂĨĨĞĐƚƐƵƌƌŽƵŶĚŝŶŐĨĂƌŵƐĂƐŶŽĂŐƌŝĐƵůƚƵƌĂůŽƌĨŽƌĞƐƚƌǇƵƐĞƐĂƌĞĂĚũĂĐĞŶƚŽƌŶĞĂƌďǇƚŽ ƚŚĞWƌŽũĞĐƚƐŝƚĞ͘
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DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
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ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
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YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
,ĞĂůƚŚ ZŝƐŬ ƐƐĞƐƐŵĞŶƚ;,ZͿ ǁĂƐ ĐŽŶĚƵĐƚĞĚ ĨŽƌ ƚŚĞ WƌŽũĞĐƚ ďǇ <ŝŵůĞǇͲ,ŽƌŶ ĂŶĚ ƐƐŽĐŝĂƚĞƐŝŶ ƵŐƵƐƚϮϬϮϭ͘dŚĞƌĞƐƵůƚƐŽĨƚŚĞ,ZĂƌĞƐƵŵŵĂƌŝǌĞĚŚĞƌĞŝŶĂŶĚŝŶĐůƵĚĞĚĂƐƉƉĞŶĚŝǆƚŽƚŚŝƐĚĚĞŶĚƵŵ͘ EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚƐŝƚĞŝƐůŽĐĂƚĞĚŝŶ ƚŚĞ^ŽƵƚŚ ŽĂƐƚŝƌĂƐŝŶ;ĂƐŝŶͿǁŚŝĐŚ ŝŶĐůƵĚĞƐ ƉĂƌƚƐŽĨ ^ĂŶ ĞƌŶĂƌĚŝŶŽ͕>ŽƐŶŐĞůĞƐ͕ĂŶĚ ZŝǀĞƌƐŝĚĞĐŽƵŶƚŝĞƐ ĂŶĚ Ăůů ŽĨ KƌĂŶŐĞŽƵŶƚǇ͘dŚĞ ^YDĂŶĚƚŚĞĂůŝĨŽƌŶŝĂŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ;ZͿŵŽŶŝƚŽƌĂŝƌƋƵĂůŝƚǇǁŝƚŚŝŶƚŚĞĂƐŝŶ͘ ŝƌ ƋƵĂůŝƚǇ ƉůĂŶƐ ĚĞƐĐƌŝďĞĂŝƌ ƉŽůůƵƚŝŽŶ ĐŽŶƚƌŽů ƐƚƌĂƚĞŐŝĞƐĂŶĚŵĞĂƐƵƌĞƐƚŽ ďĞ ŝŵƉůĞŵĞŶƚĞĚ ďǇ Ă ĐŝƚǇ͕ ĐŽƵŶƚǇ͕ƌĞŐŝŽŶ͕ĂŶĚͬŽƌĂŝƌĚŝƐƚƌŝĐƚ͘dŚĞƉƌŝŵĂƌǇƉƵƌƉŽƐĞŽĨĂŶĂŝƌƋƵĂůŝƚǇƉůĂŶŝƐƚŽďƌŝŶŐĂŶĂƌĞĂƚŚĂƚĚŽĞƐ ŶŽƚĂƚƚĂŝŶ&ĞĚĞƌĂůĂŶĚ^ƚĂƚĞĂŝƌƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐŝŶƚŽĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ&ĞĚĞƌĂů ůĞĂŶŝƌĐƚĂŶĚĂůŝĨŽƌŶŝĂůĞĂŶŝƌĐƚ͘/ŶĂĚĚŝƚŝŽŶ͕ĂŝƌƋƵĂůŝƚǇƉůĂŶƐĂƌĞĚĞǀĞůŽƉĞĚƚŽĞŶƐƵƌĞƚŚĂƚĂŶ ĂƌĞĂŵĂŝŶƚĂŝŶƐ Ă ŚĞĂůƚŚĨƵů ůĞǀĞů ŽĨ Ăŝƌ ƋƵĂůŝƚǇ ďĂƐĞĚ ŽŶ ƚŚĞ EĂƚŝŽŶĂů ŵďŝĞŶƚ ŝƌYƵĂůŝƚǇ ^ƚĂŶĚĂƌĚƐ ;EY^Ϳ ĂŶĚƚŚĞĂůŝĨŽƌŶŝĂŵďŝĞŶƚ ŝƌYƵĂůŝƚǇ^ƚĂŶĚĂƌĚƐ;Y^Ϳ͘dŚĞ ŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚWůĂŶ ;YDWͿ ŝƐƉƌĞƉĂƌĞĚďǇ ^YDĂŶĚƚŚĞ ^ŽƵƚŚĞƌŶĂůŝĨŽƌŶŝĂƐƐŽĐŝĂƚŝŽŶŽĨ 'ŽǀĞƌŶŵĞŶƚƐ;^'Ϳ͘dŚĞ YDW ƉƌŽǀŝĚĞƐƉŽůŝĐŝĞƐ ĂŶĚ ĐŽŶƚƌŽůŵĞĂƐƵƌĞƐƚŚĂƚƌĞĚƵĐĞĞŵŝƐƐŝŽŶƐƚŽ ĂƚƚĂŝŶďŽƚŚ ^ƚĂƚĞĂŶĚ&ĞĚĞƌĂů ĂŵďŝĞŶƚĂŝƌƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐ͘
ĐĐŽƌĚŝŶŐƚŽƚŚĞ^YD͕ĂƉƌŽũĞĐƚŝƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞYDWŝĨƚŚĞƉƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶ ŝŶĐƌĞĂƐĞŝŶ ƚŚĞ ĨƌĞƋƵĞŶĐǇ Žƌ ƐĞǀĞƌŝƚǇŽĨ ĞǆŝƐƚŝŶŐĂŝƌ ƋƵĂůŝƚǇ ǀŝŽůĂƚŝŽŶƐ Žƌ ĐĂƵƐĞŽƌ ĐŽŶƚƌŝďƵƚĞ ƚŽ ŶĞǁ ǀŝŽůĂƚŝŽŶƐŽƌĚĞůĂǇƚŝŵĞůǇĂƚƚĂŝŶŵĞŶƚŽĨĂŝƌƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐŽƌƚŚĞŝŶƚĞƌŝŵĞŵŝƐƐŝŽŶƌĞĚƵĐƚŝŽŶƐƐƉĞĐŝĨŝĞĚ ŝŶƚŚĞYDW͘dŚĞĂƐŝŶŝƐĚĞƐŝŐŶĂƚĞĚĂƐĂƚƚĂŝŶŵĞŶƚĨŽƌĐƌŝƚĞƌŝĂƉŽůůƵƚĂŶƚƐEŝƚƌŽŐĞŶŝŽǆŝĚĞ;EKϮͿ͕^ƵůĨƵƌ ŝŽǆŝĚĞ;^KϮͿĂŶĚ>ĞĂĚ͘,ŽǁĞǀĞƌ͕ƚŚĞĂƐŝŶŝƐĐƵƌƌĞŶƚůǇŝŶŶŽŶĂƚƚĂŝŶŵĞŶƚĨŽƌKǌŽŶĞ;KϯͿ͘EŝƚƌŽŐĞŶKǆŝĚĞ ;EKǆͿ ĞŵŝƐƐŝŽŶƐ͕ĂƉƌĞĐƵƌƐŽƌƚŽKϯ͕ĂƌĞĨĂƌďĞůŽǁƚŚĞƚŚƌĞƐŚŽůĚƐĞƐƚĂďůŝƐŚĞĚďǇƚŚĞ^YD͘ŽŵƉůŝĂŶĐĞ ǁŝƚŚ ^YD ZƵůĞ ϭϭϭϯ ǁŽƵůĚ ĞŶƐƵƌĞƌĞĂĐƚŝǀĞ ŽƌŐĂŶŝĐŐĂƐƐĞƐ;ZK'Ϳ ĞŵŝƐƐŝŽŶƐĂƌĞďĞůŽǁ ^YD ƚŚƌĞƐŚŽůĚ ůĞǀĞůƐ͘ ZƵůĞ ϭϭϭϯ ƌĞƋƵŝƌĞƐ ŵĂŶƵĨĂĐƚƵƌĞƌƐ͕ĚŝƐƚƌŝďƵƚŽƌƐ͕ĂŶĚ ĞŶĚͲƵƐĞƌƐ ŽĨ ĂƌĐŚŝƚĞĐƚƵƌĂůĂŶĚ ŝŶĚƵƐƚƌŝĂůŵĂŝŶƚĞŶĂŶĐĞĐŽĂƚŝŶŐƐƚŽƌĞĚƵĐĞǀŽůĂƚŝůĞŽƌŐĂŶŝĐĐŽŵƉŽƵŶĚƐ ;sKͿĞŵŝƐƐŝŽŶƐĨƌŽŵƚŚĞƵƐĞŽĨ ƚŚĞƐĞĐŽĂƚŝŶŐƐ͕ƉƌŝŵĂƌŝůǇďǇƉůĂĐŝŶŐůŝŵŝƚƐŽŶƚŚĞsKĐŽŶƚĞŶƚŽĨǀĂƌŝŽƵƐĐŽĂƚŝŶŐĐĂƚĞŐŽƌŝĞƐ͘dŚĞĂƐŝŶŝƐ 144
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ĂůƐŽŝŶŶŽŶĂƚƚĂŝŶŵĞŶƚĨŽƌƉĂƌƚŝĐƵůĂƚĞŵĂƚƚĞƌϭϬŵŝĐƌŽŶƐŝŶĚŝĂŵĞƚĞƌŽƌůĞƐƐ;WDϭϬͿĂŶĚƉĂƌƚŝĐƵůĂƚĞŵĂƚƚĞƌ Ϯ͘ϱŵŝĐƌŽŶƐŝŶĚŝĂŵĞƚĞƌŽƌůĞƐƐ;WDϮ͘ϱͿ͘
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Y,ĂŶĚďŽŽŬ͕ŝĚĞŶƚŝĨŝĞƐƚǁŽŬĞǇŝŶĚŝĐĂƚŽƌƐŽĨĐŽŶƐŝƐƚĞŶĐǇǁŝƚŚƚŚĞYDW͗ ϭ͘ tŚĞƚŚĞƌĂ ƉƌŽũĞĐƚǁŝůů ƌĞƐƵůƚŝŶ ĂŶ ŝŶĐƌĞĂƐĞŝŶ ƚŚĞĨƌĞƋƵĞŶĐǇ Žƌ ƐĞǀĞƌŝƚǇŽĨ ĞǆŝƐƚŝŶŐĂŝƌƋƵĂůŝƚǇ ǀŝŽůĂƚŝŽŶƐ Žƌ ĐĂƵƐĞ Žƌ ĐŽŶƚƌŝďƵƚĞ ƚŽ ŶĞǁ ǀŝŽůĂƚŝŽŶƐ Žƌ ĚĞůĂǇ ƚŝŵĞůǇ ĂƚƚĂŝŶŵĞŶƚŽĨ Ăŝƌ ƋƵĂůŝƚǇ ƐƚĂŶĚĂƌĚƐŽƌƚŚĞŝŶƚĞƌŝŵĞŵŝƐƐŝŽŶƌĞĚƵĐƚŝŽŶƐƐƉĞĐŝĨŝĞĚŝŶƚŚĞYDW͘ Ϯ͘ tŚĞƚŚĞƌĂƉƌŽũĞĐƚǁŝůůĞǆĐĞĞĚƚŚĞĂƐƐƵŵƉƚŝŽŶƐŝŶƚŚĞYDWďĂƐĞĚŽŶƚŚĞǇĞĂƌŽĨƉƌŽũĞĐƚďƵŝůĚŽƵƚ ĂŶĚƉŚĂƐĞ͘
dŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚYDWƌŝƚĞƌŝŽŶϭƐŝŶĐĞƚŚĞWƌŽũĞĐƚǁŽƵůĚŽĐĐƵƉǇĂŶĂƌĞĂƚŚĂƚŝƐ ĐƵƌƌĞŶƚůǇĚĞǀĞůŽƉĞĚĂŶĚŝŶƵƐĞǁŝƚŚŝŶĚƵƐƚƌŝĂůͬǁĂƌĞŚŽƵƐŝŶŐĂĐƚŝǀŝƚŝĞƐĂŶĚĚĞǀĞůŽƉŵĞŶƚƐ͘/ŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞWƌŽũĞĐƚǁŽƵůĚĐŽŶƚŝŶƵĞ ƚŚĞƐĞƵƐĞƐĂƚĂƐĞĞŵŝŶŐůǇůĂƌŐĞƌƐĐĂůĞ͘dŚĞůĂƌŐĞƌƐŝǌĞĂŶĚƐƵďƐĞƋƵĞŶƚůǇ ůĂƌŐĞƌŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚǇǁŽƵůĚŝŶĞǀŝƚĂďůǇŐĞŶĞƌĂƚĞĂŶŝŶĐƌĞĂƐĞĚƌĂƚĞŽĨĞŵŝƐƐŝŽŶƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚůŝŬĞůǇ ĞǆĐĞĞĚ ƚŚĞ ƐŚŽƌƚͲƚĞƌŵ ĐŽŶƐƚƌƵĐƚŝŽŶ ƐƚĂŶĚĂƌĚƐ ĂƐ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐ ǁŽƵůĚ ŝŶǀŽůǀĞ ďŽƚŚ ĐŽŶƐƚƌƵĐƚŝŽŶ ŽĨ ƚŚĞ WƌŽũĞĐƚ ƐƚƌƵĐƚƵƌĞƐĂŶĚ ĚĞŵŽůŝƚŝŽŶ ŽĨ ĞǆŝƐƚŝŶŐ ƐƚƌƵĐƚƵƌĞƐ͘ dŚƵƐ͕ƚŚĞ ƉŽƚĞŶƚŝĂů ĨŽƌ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐŝƐĂŶƚŝĐŝƉĂƚĞĚĚƵĞƚŽƚŚĞWƌŽũĞĐƚ͛ƐŝŶĐŽŶƐŝƐƚĞŶĐǇǁŝƚŚƚŚĞĨŝƌƐƚĐƌŝƚĞƌŝŽŶ͘ ŽŶĐĞƌŶŝŶŐŽŶƐŝƐƚĞŶĐǇƌŝƚĞƌŝŽŶEŽ͘Ϯ͕ƚŚĞYDWĐŽŶƚĂŝŶƐĂŝƌƉŽůůƵƚĂŶƚƌĞĚƵĐƚŝŽŶ ƐƚƌĂƚĞŐŝĞƐďĂƐĞĚŽŶ ^'͛ƐůĂƚĞƐƚŐƌŽǁƚŚĨŽƌĞĐĂƐƚƐ͕ĂŶĚ ^'͛ƐŐƌŽǁƚŚĨŽƌĞĐĂƐƚƐǁĞƌĞ ĚĞĨŝŶĞĚ ŝŶ ĐŽŶƐƵůƚĂƚŝŽŶ ǁŝƚŚ ůŽĐĂů ŐŽǀĞƌŶŵĞŶƚƐĂŶĚ ǁŝƚŚ ƌĞĨĞƌĞŶĐĞƚŽ ůŽĐĂů ŐĞŶĞƌĂůƉůĂŶƐ͘ dŚĞ WƌŽũĞĐƚ ŝƐ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚ ƚŚĞ ůĂŶĚ ƵƐĞ ĚĞƐŝŐŶĂƚŝŽŶĂŶĚĚĞǀĞůŽƉŵĞŶƚĚĞŶƐŝƚǇƉƌĞƐĞŶƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'WĂŶĚƚŚĞƌĞĨŽƌĞǁŽƵůĚŶŽƚĞǆĐĞĞĚƚŚĞ ƉŽƉƵůĂƚŝŽŶ Žƌ ũŽď ŐƌŽǁƚŚ ƉƌŽũĞĐƚŝŽŶƐ ƵƐĞĚ ďǇ ƚŚĞ ^YD ƚŽ ĚĞǀĞůŽƉ ƚŚĞ YDW͘dŚƵƐ͕ ĂůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͕ĂƐƚŚĞWƌŽũĞĐƚŝƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞƐĞĐŽŶĚĐƌŝƚĞƌŝŽŶ͘ dŚĞKŶƚĂƌŝŽ'W
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ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'W͘
dŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐϯͲϭĂŶĚϯͲϮǁĞƌĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
ϯͲϭ dŚĞ ŝƚǇ ŽĨ KŶƚĂƌŝŽ ƵŝůĚŝŶŐ ĞƉĂƌƚŵĞŶƚ ƐŚĂůů ƌĞƋƵŝƌĞ ƚŚĂƚ Ăůů ŶĞǁ ĐŽŶƐƚƌƵĐƚŝŽŶ ƉƌŽũĞĐƚƐ ŝŶĐŽƌƉŽƌĂƚĞ ĨĞĂƐŝďůĞŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞƐƚŽƌĞĚƵĐĞĂŝƌ ƋƵĂůŝƚǇ ĞŵŝƐƐŝŽŶƐ͘WŽƚĞŶƚŝĂůŵĞĂƐƵƌĞƐ ƐŚĂůůďĞŝŶĐŽƌƉŽƌĂƚĞĚĂƐĐŽŶĚŝƚŝŽŶƐŽĨĂƉƉƌŽǀĂůĨŽƌĂƉƌŽũĞĐƚĂŶĚŵĂǇŝŶĐůƵĚĞ͗ x ZĞƋƵŝƌŝŶŐ ĨƵŐŝƚŝǀĞ ĚƵƐƚ ĐŽŶƚƌŽů ŵĞĂƐƵƌĞƐ ƚŚĂƚ ĞǆĐĞĞĚ ^ŽƵƚŚ ŽĂƐƚ ŝƌ YƵĂůŝƚǇ DĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ͛ƐZƵůĞϰϬϯ͕ƐƵĐŚĂƐ͗
o ZĞƋƵŝƌŝŶŐƵƐĞŽĨŶŽŶƚŽǆŝĐ ƐŽŝůƐƚĂďŝůŝǌĞƌƐƚŽƌĞĚƵĐĞǁŝŶĚ ĞƌŽƐŝŽŶ͘ o ƉƉůǇŝŶŐǁĂƚĞƌĞǀĞƌǇĨŽƵƌŚŽƵƌƐƚŽĂĐƚŝǀĞƐŽŝůĚŝƐƚƵƌďŝŶŐĂĐƚŝǀŝƚŝĞƐ͘ 145
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϯϭ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
o dĂƌƉŝŶŐ ĂŶĚͬŽƌ ŵĂŝŶƚĂŝŶŝŶŐ ĂŵŝŶŝŵƵŵ ŽĨ Ϯϰ ŝŶĐŚĞƐŽĨ ĨƌĞĞďŽĂƌĚ ŽŶ ƚƌƵĐŬƐ ŚĂƵůŝŶŐ Ěŝƌƚ͕ƐĂŶĚ͕ƐŽŝů͕ŽƌŽƚŚĞƌůŽŽƐĞŵĂƚĞƌŝĂůƐ͘
x hƐŝŶŐ ĐŽŶƐƚƌƵĐƚŝŽŶ ĞƋƵŝƉŵĞŶƚ ƌĂƚĞĚ ďǇ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ ŶǀŝƌŽŶŵĞŶƚĂů WƌŽƚĞĐƚŝŽŶ
ŐĞŶĐǇĂƐŚĂǀŝŶŐdŝĞƌϯŽƌŚŝŐŚĞƌĞǆŚĂƵƐƚĞŵŝƐƐŝŽŶůŝŵŝƚƐ͘ x
ŶƐƵƌŝŶŐ ĐŽŶƐƚƌƵĐƚŝŽŶ ĞƋƵŝƉŵĞŶƚ ŝƐ ƉƌŽƉĞƌůǇ ƐĞƌǀŝĐĞĚ ĂŶĚ ŵĂŝŶƚĂŝŶĞĚ ƚŽ ƚŚĞ ŵĂŶƵĨĂĐƚƵƌĞƌ͛ƐƐƚĂŶĚĂƌĚƐ͘
x >ŝŵŝƚŝŶŐŶŽŶĞƐƐĞŶƚŝĂůŝĚůŝŶŐ ŽĨĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚƚŽŶŽŵŽƌĞƚŚĂŶĨŝǀĞĐŽŶƐĞĐƵƚŝǀĞ ŵŝŶƵƚĞƐ͘
x hƐŝŶŐ ^ƵƉĞƌͲŽŵƉůŝĂŶƚ sK ƉĂŝŶƚƐ ĨŽƌ ĐŽĂƚŝŶŐ ŽĨ ĂƌĐŚŝƚĞĐƚƵƌĂů ƐƵƌĨĂĐĞƐ ǁŚĞŶĞǀĞƌ ƉŽƐƐŝďůĞ͘ůŝƐƚŽĨ^ƵƉĞƌͲŽŵƉůŝĂŶƚĂƌĐŚŝƚĞĐƚƵƌĂůĐŽĂƚŝŶŐŵĂŶƵĨĂĐƚƵƌĞƐĐĂŶďĞĨŽƵŶĚŽŶ ƚŚĞ ^ŽƵƚŚ ŽĂƐƚ ŝƌ YƵĂůŝƚǇ DĂŶĂŐĞŵĞŶƚ ŝƐƚƌŝĐƚ͛Ɛ ǁĞďƐŝƚĞ Ăƚ͗ ŚƚƚƉ͗ͬͬǁǁǁ͘ĂƋŵĚ͘ŐŽǀͬƉƌĚĂƐͬďƌŽĐŚƵƌĞƐͬ^ƵƉĞƌͲŽŵƉůŝĂŶƚͺ/D͘ƉĚĨ͘ ϯͲϮ dŚĞŝƚǇŽĨKŶƚĂƌŝŽ ƐŚĂůů ĞǀĂůƵĂƚĞŶĞǁ ĚĞǀĞůŽƉŵĞŶƚƉƌŽƉŽƐĂůƐǁŝƚŚŝŶ ƚŚĞŝƚǇĂŶĚ ƌĞƋƵŝƌĞĂůů ĚĞǀĞůŽƉŵĞŶƚƐƚŽ ŝŶĐůƵĚĞ ĂĐĐĞƐƐŽƌ ůŝŶŬĂŐĞƐ ƚŽ ĂůƚĞƌŶĂƚŝǀĞŵŽĚĞƐ ŽĨ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͕ ƐƵĐŚĂƐ ƚƌĂŶƐŝƚƐƚŽƉƐ͕ďŝŬĞƉĂƚŚƐ͕ĂŶĚͬŽƌƉĞĚĞƐƚƌŝĂŶƉĂƚŚƐ;Ğ͘Ő͕͘ƐŝĚĞǁĂůŬƐͿ͘ ŽŶĐůƵƐŝŽŶ
dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚŝŶ ŶŽ ŶĞǁ ŽƌŵŽƌĞ ƐĞǀĞƌĞŝŵƉĂĐƚ ƉĞƌƚĂŝŶŝŶŐƚŽ ĐŽŶĨůŝĐƚ ǁŝƚŚ Žƌ ŽďƐƚƌƵĐƚŝŶŐ ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞYDW͘/ŵƉĂĐƚƐǁŽƵůĚƌĞŵĂŝŶƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞƐŝŵŝůĂƌůǇƚŽƚŚĞĐĞƌƚŝĨŝĞĚ KŶƚĂƌŝŽ 'W
/Z ǁŝƚŚ ŶŽ ŵŝƚŝŐĂƚŝŽŶ ĨŽƵŶĚ ĨĞĂƐŝďůĞ͘ dŚĞ WƌŽũĞĐƚ͛Ɛ ŝŵƉĂĐƚƐ ǁŽƵůĚ ďĞ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ĚĞǀĞůŽƉŵĞŶƚŝŶƚŚĞĂƌĞĂĂŶĚǁŽƵůĚ ĨŽůůŽǁĂƉƉůŝĐĂďůĞYDWŵĞĂƐƵƌĞƐ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞ ŝŵƉĂĐƚƐƌĞůĂƚŝǀĞƚŽĂŝƌƋƵĂůŝƚǇĞŵŝƐƐŝŽŶƐĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĞǀĂůƵĂƚĞĚŝŶƚŚĞ KŶƚĂƌŝŽ'W
/ZǁŽƵůĚŽĐĐƵƌǁŝƚŚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚĂŶĚŝĚĞŶƚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĨƌŽŵ ƚŚĞKŶƚĂƌŝŽ'W
/Z͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚ ĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
/ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚĐŚĂŶŐĞ
ƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞĚĞƚĞƌŵŝŶĂƚŝŽŶŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘
dŚƌĞƐŚŽůĚ;ĐͿ ZĞƐƵůƚŝŶĂĐƵŵƵůĂƚŝǀĞůǇĐŽŶƐŝĚĞƌĂďůĞŶĞƚŝŶĐƌĞĂƐĞŽĨĂŶǇĐƌŝƚĞƌŝĂƉŽůůƵƚĂŶƚĨŽƌǁŚŝĐŚƚŚĞ ƉƌŽũĞĐƚƌĞŐŝŽŶŝƐŝŶŶŽŶͲĂƚƚĂŝŶŵĞŶƚƵŶĚĞƌĂŶĂƉƉůŝĐĂďůĞ&ĞĚĞƌĂůŽƌƐƚĂƚĞĂŵďŝĞŶƚĂŝƌ ƋƵĂůŝƚǇƐƚĂŶĚĂƌĚ͍΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϯͲϮ͕ϱ͘ϯͲϯ΁
ŽŶƐƚƌƵĐƚŝŽŶ
ŵŝƐƐŝŽŶƐ
EŽEĞǁ ŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ŽŶƐƚƌƵĐƚŝŽŶĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚ ǁŽƵůĚ ŐĞŶĞƌĂƚĞƐŚŽƌƚ ͲƚĞƌŵ ĞŵŝƐƐŝŽŶƐŽĨ ĐƌŝƚĞƌŝĂĂŝƌƉŽůůƵƚĂŶƚƐ͘dŚĞ ĐƌŝƚĞƌŝĂƉŽůůƵƚĂŶƚƐ ŽĨ ƉƌŝŵĂƌǇ ĐŽŶĐĞƌŶ ǁŝƚŚŝŶ ƚŚĞ WƌŽũĞĐƚĂƌĞĂ ŝŶĐůƵĚĞ KϯͲƉƌĞĐƵƌƐŽƌ ƉŽůůƵƚĂŶƚƐ ;ŝ͘Ğ͕͘ ZK' ĂŶĚ EKyͿ ĂŶĚ WDϭϬ ĂŶĚ WDϮ͘ϱ͘ ŽŶƐƚƌƵĐƚŝŽŶͲŐĞŶĞƌĂƚĞĚ ĞŵŝƐƐŝŽŶƐĂƌĞƐŚŽƌƚƚĞƌŵĂŶĚŽĨƚĞŵƉŽƌĂƌǇĚƵƌĂƚŝŽŶ͕ůĂƐƚŝŶŐŽŶůǇĂƐůŽŶŐĂƐĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐŽĐĐƵƌ͕ ďƵƚǁŽƵůĚďĞĐŽŶƐŝĚĞƌĞĚĂƐŝŐŶŝĨŝĐĂŶƚĂŝƌƋƵĂůŝƚǇŝŵƉĂĐƚŝĨƚŚĞǀŽůƵŵĞŽĨƉŽůůƵƚĂŶƚƐŐĞŶĞƌĂƚĞĚĞǆĐĞĞĚƐƚŚĞ ^YD͛ƐƚŚƌĞƐŚŽůĚƐŽĨƐŝŐŶŝĨŝĐĂŶĐĞ͘ŽŶƐƚƌƵĐƚŝŽŶĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚǁŽƵůĚŐĞŶĞƌĂƚĞƐŚŽƌƚ ͲƚĞƌŵ ĞŵŝƐƐŝŽŶƐŽĨ ĐƌŝƚĞƌŝĂĂŝƌƉŽůůƵƚĂŶƚƐ͘dŚĞ ĐƌŝƚĞƌŝĂƉŽůůƵƚĂŶƚƐ ŽĨ ƉƌŝŵĂƌǇ ĐŽŶĐĞƌŶ ǁŝƚŚŝŶ ƚŚĞ WƌŽũĞĐƚĂƌĞĂ ŝŶĐůƵĚĞ KϯͲƉƌĞĐƵƌƐŽƌ ƉŽůůƵƚĂŶƚƐ ;ŝ͘Ğ͕͘ ZK' ĂŶĚ EKyͿ ĂŶĚ WDϭϬ ĂŶĚ WDϮ͘ϱ͘ ŽŶƐƚƌƵĐƚŝŽŶͲŐĞŶĞƌĂƚĞĚ ĞŵŝƐƐŝŽŶƐĂƌĞƐŚŽƌƚƚĞƌŵĂŶĚŽĨƚĞŵƉŽƌĂƌǇĚƵƌĂƚŝŽŶ͕ůĂƐƚŝŶŐŽŶůǇĂƐůŽŶŐĂƐĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐŽĐĐƵƌ͕ ďƵƚǁŽƵůĚďĞĐŽŶƐŝĚĞƌĞĚĂƐŝŐŶŝĨŝĐĂŶƚĂŝƌƋƵĂůŝƚǇŝŵƉĂĐƚŝĨƚŚĞǀŽůƵŵĞŽĨƉŽůůƵƚĂŶƚƐŐĞŶĞƌĂƚĞĚĞǆĐĞĞĚƐƚŚĞ ^YD͛ƐƚŚƌĞƐŚŽůĚƐŽĨƐŝŐŶŝĨŝĐĂŶĐĞ͘
146
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϯϮ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
&ƵŐŝƚŝǀĞĚƵƐƚĞŵŝƐƐŝŽŶƐŵĂǇĂůƐŽƉƌĞƐĞŶƚĂƐƵďƐƚĂŶƚŝĂů͕ƚĞŵƉŽƌĂƌǇŝŵƉĂĐƚŽŶůŽĐĂůĂŝƌƋƵĂůŝƚǇ͘/ŶĂĚĚŝƚŝŽŶ͕ ĨƵŐŝƚŝǀĞĚƵƐƚŵĂǇďĞĂŶƵŝƐĂŶĐĞƚŽƚŚŽƐĞůŝǀŝŶŐĂŶĚǁŽƌŬŝŶŐŝŶƚŚĞWƌŽũĞĐƚǀŝĐŝŶŝƚǇ͘hŶĐŽŶƚƌŽůůĞĚĚƵƐƚĨƌŽŵ ĐŽŶƐƚƌƵĐƚŝŽŶĐĂŶ ďĞĐŽŵĞĂ ŶƵŝƐĂŶĐĞĂŶĚ ƉŽƚĞŶƚŝĂů ŚĞĂůƚŚŚĂǌĂƌĚƚŽ ƚŚŽƐĞůŝǀŝŶŐ ĂŶĚ ǁŽƌŬŝŶŐ ŶĞĂƌďǇ͘ ^YDZƵůĞƐϰϬϮĂŶĚϰϬϯ;ƉƌŽŚŝďŝƚŝŽŶŽĨŶƵŝƐĂŶĐĞƐ͕ǁĂƚĞƌŝŶŐŽĨŝŶĂĐƚŝǀĞĂŶĚƉĞƌŝŵĞƚĞƌĂƌĞĂƐ͕ƚƌĂĐŬŽƵƚ ƌĞƋƵŝƌĞŵĞŶƚƐ͕ĞƚĐ͘Ϳ͕ĂƌĞ ĂƉƉůŝĐĂďůĞ ƚŽ ƚŚĞ WƌŽũĞĐƚ͘ ZƵůĞ ϰϬϮ ƉƌŽŚŝďŝƚƐ ƚŚĞ ĚŝƐĐŚĂƌŐĞĨƌŽŵ ĂŶǇ ƐŽƵƌĐĞ ǁŚĂƚƐŽĞǀĞƌƐƵĐŚƋƵĂŶƚŝƚŝĞƐŽĨĂŝƌĐŽŶƚĂŵŝŶĂŶƚƐŽƌŽƚŚĞƌŵĂƚĞƌŝĂůǁŚŝĐŚĐĂƵƐĞŝŶũƵƌǇ͕ĚĞƚƌŝŵĞŶƚ͕ŶƵŝƐĂŶĐĞ͕ ŽƌĂŶŶŽǇĂŶĐĞƚŽĂŶǇĐŽŶƐŝĚĞƌĂďůĞŶƵŵďĞƌŽĨ ƉĞƌƐŽŶƐŽƌƚŽƚŚĞƉƵďůŝĐ͕ ŽƌǁŚŝĐŚĞŶĚĂŶŐĞƌƚŚĞĐŽŵĨŽƌƚ͕ ƌĞƉŽƐĞ͕ŚĞĂůƚŚ͕ŽƌƐĂĨĞƚǇŽĨĂŶǇƐƵĐŚƉĞƌƐŽŶƐŽƌƚŚĞƉƵďůŝĐ͕ŽƌǁŚŝĐŚĐĂƵƐĞ͕ŽƌŚĂǀĞĂŶĂƚƵƌĂůƚĞŶĚĞŶĐǇƚŽ ĐĂƵƐĞ͕ŝŶũƵƌǇ Žƌ ĚĂŵĂŐĞƚŽ ďƵƐŝŶĞƐƐŽƌ ƉƌŽƉĞƌƚǇ͘ dŚŝƐ ƌƵůĞ ĚŽĞƐ ŶŽƚ ĂƉƉůǇ ƚŽ ŽĚŽƌƐ ĞŵĂŶĂƚŝŶŐĨƌŽŵ ĂŐƌŝĐƵůƚƵƌĂůŽƉĞƌĂƚŝŽŶƐŶĞĐĞƐƐĂƌǇĨŽƌ ƚŚĞ ŐƌŽǁŝŶŐŽĨ ĐƌŽƉƐŽƌ ƚŚĞƌĂŝƐŝŶŐŽĨ ĨŽǁů Žƌ ĂŶŝŵĂůƐ͘ZƵůĞϰϬϯ ƌĞƋƵŝƌĞƐĨƵŐŝƚŝǀĞĚƵƐƚƐŽƵƌĐĞƐƚŽŝŵƉůĞŵĞŶƚďĞƐƚĂǀĂŝůĂďůĞĐŽŶƚƌŽůŵĞĂƐƵƌĞƐĨŽƌĂůůƐŽƵƌĐĞƐ͕ĂŶĚĂůůĨŽƌŵƐ ŽĨǀŝƐŝďůĞƉĂƌƚŝĐƵůĂƚĞŵĂƚƚĞƌĂƌĞƉƌŽŚŝďŝƚĞĚĨƌŽŵĐƌŽƐƐŝŶŐĂŶǇƉƌŽƉĞƌƚǇůŝŶĞ͘dŚŝƐƌƵůĞŝƐŝŶƚĞŶĚĞĚƚŽƌĞĚƵĐĞ WDϭϬĞŵŝƐƐŝŽŶƐĨƌŽŵĂŶǇƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͕ŚĂŶĚůŝŶŐ͕ĐŽŶƐƚƌƵĐƚŝŽŶ͕ŽƌƐƚŽƌĂŐĞĂĐƚŝǀŝƚǇƚŚĂƚŚĂƐƚŚĞƉŽƚĞŶƚŝĂů ƚŽŐĞŶĞƌĂƚĞĨƵŐŝƚŝǀĞĚƵƐƚ͘
WƌŽũĞĐƚŽƉĞƌĂƚŝŽŶƐͲŐĞŶĞƌĂƚĞĚĞŵŝƐƐŝŽŶƐǁŽƵůĚďĞƉƌŝŵĂƌŝůǇĂƐƐŽĐŝĂƚĞĚǁŝƚŚŵŽƚŽƌǀĞŚŝĐůĞƵƐĞĂŶĚĂƌĞĂ ƐŽƵƌĐĞƐ͕ƐƵĐŚĂƐƚŚĞƵƐĞŽĨůĂŶĚƐĐĂƉĞŵĂŝŶƚĞŶĂŶĐĞĞƋƵŝƉŵĞŶƚĂŶĚĂƌĐŚŝƚĞĐƚƵƌĂůĐŽĂƚŝŶŐƐ͘ƐƉƌĞǀŝŽƵƐůǇ ƐƚĂƚĞĚ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůǇ ǁŝƚŚZƵůĞϭϭϭϯŝŶŽƌĚĞƌƚŽŵŝŶŝŵŝǌĞĞŵŝƐƐŝŽŶƐĚƵĞƚŽ ĂƌĐŚŝƚĞĐƚƵƌĂůĐŽĂƚŝŶŐƐ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞǁŝƚŚŝŶƚŚĞŝŶƚĞŶĚĞĚƵƐĂŐĞŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĂƐ ĂŶĂůǇǌĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z͘dŚĞ WƌŽũĞĐƚ͛Ɛ ĐŽŶƐŝƐƚĞŶĐǇ ǁŝƚŚ ƉƌĞǀŝŽƵƐůǇ ĂŶĂůǇǌĞĚ ƵƐĂŐĞ ĂŶĚ ƚŚĞ ƚĞŵƉŽƌĂƌǇŶĂƚƵƌĞŽĨĐŽŶƐƚƌƵĐƚŝŽŶŐĞŶĞƌĂƚĞĚĞŵŝƐƐŝŽŶƐǁŽƵůĚůĞĂĚƚŽĂƐŝŵŝůĂƌůǇƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚ͖ĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĐŽŶĐůƵƐŝŽŶƐŽĨ ƚŚĞKŶƚĂƌŝŽ'W /Z͘ĞƐƉŝƚĞƚŚĞƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞ
ŶĂƚƵƌĞŽĨƚŚŝƐŝŵƉĂĐƚ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϯͲϮǁŝůůĐŽŶƚŝŶƵĞƚŽďĞĂƉƉůŝĞĚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
^ĞĞŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϯͲϭĂŶĚϯͲϮĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W /ZĂďŽǀĞ͘
ŽŶĐůƵƐŝŽŶ
ŝƌƋƵĂůŝƚǇŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽƚŚĞWƌŽũĞĐƚĂƌĞǁŝƚŚŝŶƚŚĞůŝŵŝƚŽĨŝŵƉĂĐƚƐŝĚĞŶƚŝĨŝĞĚďǇƚŚĞ^YD͘EŽŶĞǁ ŝŵƉĂĐƚƌĞůĂƚŝǀĞƚŽĂŝƌƋƵĂůŝƚǇŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨĂƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚĞǀĂůƵĂƚĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ'W
/ZǁŽƵůĚ ŽĐĐƵƌ͘ ĚĚŝƚŝŽŶĂůůǇ͕ ŶŽ ŶĞǁ ŝŶĨŽƌŵĂƚŝŽŶ ŽĨ ƐƵďƐƚĂŶƚŝĂů ŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚ ŬŶŽǁŶ ĂŶĚ ĐŽƵůĚ ŶŽƚ ŚĂǀĞďĞĞŶ ŬŶŽǁŶ ĂƚƚŚĞ ƚŝŵĞƚŚĞKŶƚĂƌŝŽ 'W /ZǁĂƐ
ĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚĂůƚĞƌƚŚĞKŶƚĂƌŝŽ'W /Z͛ƐƐŝŐŶŝĨŝĐĂŶĐĞĨŝŶĚŝŶŐ͘
dŚƌĞƐŚŽůĚ;ĚͿ
ǆƉŽƐĞƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐƚŽƐƵďƐƚĂŶƚŝĂůƉŽůůƵƚĂŶƚĐŽŶĐĞŶƚƌĂƚŝŽŶƐ͘΀KŶƚĂƌŝŽ'W /Z
/ŵƉĂĐƚϱ͘ϯͲϮ͕ϱ͘ϯͲϰ͕ϱ͘ϯͲϱ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞ^ƚĂƚĞ
Y'ƵŝĚĞůŝŶĞƐŝŶĚŝĐĂƚĞƚŚĂƚĂƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ĐŽƵůĚ ŽĐĐƵƌ ŝĨ ĂƉƌŽũĞĐƚ ǁŽƵůĚ ĞǆƉŽƐĞƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐƚŽ ƐƵďƐƚĂŶƚŝĂůƉŽůůƵƚĂŶƚĐŽŶĐĞŶƚƌĂƚŝŽŶƐ͘dŚĞ WƌŽũĞĐƚ͛ƐƉŽƚĞŶƚŝĂůƚŽĞǆƉŽƐĞƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐƚŽŚĂƌŵĨƵů ƉŽůůƵƚĂŶƚĐŽŶĐĞŶƚƌĂƚŝŽŶƐǁĂƐĂŶĂůǇǌĞĚŝŶĂ ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚƉƌĞƉĂƌĞĚďǇ<ŝŵůĞǇͲ,ŽƌŶĂŶĚƐƐŽĐŝĂƚĞƐ͘ϱ ϱ
<ŝŵůĞǇͲ,ŽƌŶĂŶĚƐƐŽĐŝĂƚĞƐ͘;ϮϬϮϭͿ͘,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚŽŶsŝĞǁtĂƌĞŚŽƵƐĞŝƚǇŽĨKŶƚĂƌŝŽ͕ĂůŝĨŽƌŶŝĂ͘WĂŐĞƐϭϴƚŚƌŽƵŐŚϭϵ͘ 147
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϯϯ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶƐƚƌƵĐƚŝŽŶ
dŚĞĚƵƌĂƚŝŽŶŽĨ ĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐĨŽƌƚŚĞWƌŽũĞĐƚŝƐĞƐƚŝŵĂƚĞĚƚŽƚĂŬĞĂƉƉƌŽǆŝŵĂƚĞůǇŶŝŶĞŵŽŶƚŚƐ͘ ŽŶƐƚƌƵĐƚŝŽŶͲƌĞůĂƚĞĚĂĐƚŝǀŝƚŝĞƐǁŽƵůĚƌĞƐƵůƚŝŶWƌŽũĞĐƚͲŐĞŶĞƌĂƚĞĚĞŵŝƐƐŝŽŶƐŽĨĚŝĞƐĞůWD;WDͿĨƌŽŵƚŚĞ ĞǆŚĂƵƐƚŽĨ ŽĨĨͲƌŽĂĚ͕ŚĞĂǀǇͲĚƵƚǇ ĚŝĞƐĞůĞƋƵŝƉŵĞŶƚ ĨŽƌ ƐŝƚĞƉƌĞƉĂƌĂƚŝŽŶ;Ğ͘Ő͕͘ĐůĞĂƌŝŶŐ͕ŐƌĂĚŝŶŐͿ͖ƉĂǀŝŶŐ͖ ĂƉƉůŝĐĂƚŝŽŶ ŽĨ ĂƌĐŚŝƚĞĐƚƵƌĂů ĐŽĂƚŝŶŐƐ͖ ŽŶͲƌŽĂĚ ƚƌƵĐŬ ƚƌĂǀĞů͖ ĂŶĚ ŽƚŚĞƌ ŵŝƐĐĞůůĂŶĞŽƵƐ ĂĐƚŝǀŝƚŝĞƐ͘ &Žƌ ĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚǇ͕WDŝƐƚŚĞƉƌŝŵĂƌǇƚŽǆŝĐĂŝƌĐŽŶƚĂŵŝŶĂŶƚŽĨĐŽŶĐĞƌŶ͘KŶͲƌŽĂĚĚŝĞƐĞůͲƉŽǁĞƌĞĚŚĂƵů ƚƌƵĐŬƐƚƌĂǀĞůŝŶŐƚŽĂŶĚĨƌŽŵƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶĂƌĞĂƚŽĚĞůŝǀĞƌŵĂƚĞƌŝĂůƐĂŶĚĞƋƵŝƉŵĞŶƚĂƌĞůĞƐƐŽĨĂĐŽŶĐĞƌŶ ďĞĐĂƵƐĞƚŚĞǇǁŽƵůĚŶŽƚƐƚĂǇŽŶƚŚĞƐŝƚĞĨŽƌůŽŶŐĚƵƌĂƚŝŽŶƐ͘ŝĞƐĞůĞǆŚĂƵƐƚĨƌŽŵĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚ ŽƉĞƌĂƚŝŶŐĂƚƚŚĞƐŝƚĞƉŽƐĞƐĂŚĞĂůƚŚƌŝƐŬƚŽŶĞĂƌďǇƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐ͘dŚĞĐůŽƐĞƐƚƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐŶĞĂƌ ƚŚĞWƌŽũĞĐƚƐŝƚĞĂƌĞƌĞƐŝĚĞŶƚŝĂůƵƐĞƐůŽĐĂƚĞĚƚŽƚŚĞƐŽƵƚŚ͘ ƐŶŽƚĞĚĂďŽǀĞ͕ŵĂǆŝŵƵŵ;ǁŽƌƐƚĐĂƐĞͿWDϭϬĞǆŚĂƵƐƚĐŽŶƐƚƌƵĐƚŝŽŶĞŵŝƐƐŝŽŶƐŽǀĞƌƚŚĞĞŶƚŝƌĞĐŽŶƐƚƌƵĐƚŝŽŶ ƉĞƌŝŽĚ ǁĞƌĞƵƐĞĚŝŶ
ZDKƚŽĂƉƉƌŽǆŝŵĂƚĞĐŽŶƐƚƌƵĐƚŝŽŶWDĞŵŝƐƐŝŽŶƐ͘ZŝƐŬůĞǀĞůƐǁĞƌĞĐĂůĐƵůĂƚĞĚ ďĂƐĞĚŽŶƚŚĞĂůŝĨŽƌŶŝĂKĨĨŝĐĞŽĨ
ŶǀŝƌŽŶŵĞŶƚĂů,ĞĂůƚŚ,ĂǌĂƌĚƐƐĞƐƐŵĞŶƚ;K
,,ͿŐƵŝĚĂŶĐĞĚŽĐƵŵĞŶƚ͕
ŝƌdŽǆŝĐƐ,Žƚ^ƉŽƚƐWƌŽŐƌĂŵZŝƐŬƐƐĞƐƐŵĞŶƚ'ƵŝĚĞůŝŶĞƐ;&ĞďƌƵĂƌǇϮϬϭϱͿ͘ZĞƐƵůƚƐŽĨƚŚŝƐĂƐƐĞƐƐŵĞŶƚĂƌĞ ƐƵŵŵĂƌŝǌĞĚŝŶdĂďůĞϮ͕ŽŶƐƚƌƵĐƚŝŽŶ,ĞĂůƚŚZŝƐŬ͘
dĂďůĞϮ͗ŽŶƐƚƌƵĐƚŝŽŶ,ĞĂůƚŚZŝƐŬ

ǆƉŽƐƵƌĞ^ĐĞŶĂƌŝŽ WŽůůƵƚĂŶƚ
ŽŶĐĞŶƚƌĂƚŝŽŶ
;ђŐͬŵϯͿ΀ϭ΁΀Ϯ΁
DĂǆŝŵƵŵĂŶĐĞƌ
ZŝƐŬ;ZŝƐŬƉĞƌ
DŝůůŝŽŶͿ
ŚƌŽŶŝĐEŽŶĐĂŶĐĞƌ
,ĂǌĂƌĚ
ĐƵƚĞEŽŶĐĂŶĐĞƌ
,ĂǌĂƌĚ
ŽŶƐƚƌƵĐƚŝŽŶ Ϭ͘ϬϬϬϭϳ Ϭ͘ϬϮϱ Ϭ͘ϬϬϬϬϯ Ϭ͘ϬϬϬϰϭ
dŚƌĞƐŚŽůĚ Eͬ ϭϬ ϭ͘Ϭ ϭ͘Ϭ
dŚƌĞƐŚŽůĚ
ǆĐĞĞĚĞĚ EŽ EŽ EŽ EŽ
΀ϭ΁ZĞĨĞƌƚŽƉƉĞŶĚŝǆŽĨƚŚĞ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
΀Ϯ΁dŚĞŵĂǆŝŵƵŵĐĂŶĐĞƌƌŝƐŬǁŽƵůĚďĞĞǆƉĞƌŝĞŶĐĞĚ ĂƚƚŚĞƌĞƐŝĚĞŶĐĞƐƚŽƐŽƵƚŚ ŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĂůŽŶŐĞĚĂƌ^ƚƌĞĞƚ͘ ZĞƐƵůƚƐŽĨ ƚŚŝƐ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚŝŶĚŝĐĂƚĞƚŚĂƚƚŚĞƵŶŵŝƚŝŐĂƚĞĚŵĂǆŝŵƵŵĐŽŶĐĞŶƚƌĂƚŝŽŶŽĨ WDϭϬ ĚƵƌŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶǁŽƵůĚďĞϬ͘ϬϬϬϭϳʅŐͬŵϯĂŶĚƌĞƐƵůƚĂŶƚĐĂŶĐĞƌƌŝƐŬŽĨϬ͘ϬϮϱŝŶŽŶĞŵŝůůŝŽŶ͕ǁŚŝĐŚǁŽƵůĚ ŶŽƚĞǆĐĞĞĚƚŚĞ^YDƚŚƌĞƐŚŽůĚŽĨ ϭϬŝŶ ŽŶĞŵŝůůŝŽŶ͘ EŽŶͲĐĂŶĐĞƌŚĂǌĂƌĚƐĨŽƌ WDǁŽƵůĚ ďĞ ďĞůŽǁ ^YDƚŚƌĞƐŚŽůĚŽĨϭ͘Ϭ͕ǁŝƚŚĂĐŚƌŽŶŝĐŚĂǌĂƌĚŝŶĚĞǆĐŽŵƉƵƚĞĚĂƚϬ͘ϬϬϬϬϯĂŶĚĂŶĂĐƵƚĞŚĂǌĂƌĚŝŶĚĞǆ ŽĨϬ͘ϬϬϬϰϭ͘dŚĞƌĞĨŽƌĞ͕ĐŽŶƐƚƌƵĐƚŝŽŶƌŝƐŬůĞǀĞůƐǁŽƵůĚďĞůĞƐƐƚŚĂŶ^YDƚŚƌĞƐŚŽůĚƐĂŶĚŝŵƉĂĐƚƐǁŽƵůĚ ďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘
KƉĞƌĂƚŝŽŶƐ
sĞŚŝĐůĞ WD ĞŵŝƐƐŝŽŶƐǁĞƌĞ ĞƐƚŝŵĂƚĞĚƵƐŝŶŐ ĞŵŝƐƐŝŽŶ ĨĂĐƚŽƌƐĨŽƌ WDϭϬ ŐĞŶĞƌĂƚĞĚǁŝƚŚ ƚŚĞ D&
ĚĞǀĞůŽƉĞĚďǇZ͘dƌƵĐŬĞŵŝƐƐŝŽŶƐǁĞƌĞŵŽĚĞůĞĚǁŝƚŚ
ZDKƚŽĚĞƚĞƌŵŝŶĞƉŽůůƵƚĂŶƚĐŽŶĐĞŶƚƌĂƚŝŽŶƐ͘
ƐƐŚŽǁŶŝŶdĂďůĞϯ͕KƉĞƌĂƚŝŽŶĂů,ĞĂůƚŚZŝƐŬ͕ƚŚĞƵŶŵŝƚŝŐĂƚĞĚĐĂůĐƵůĂƚĞĚĐĂƌĐŝŶŽŐĞŶŝĐƌŝƐŬƌĞƐƵůƚŝŶŐĨƌŽŵ ƚŚĞ WƌŽũĞĐƚ ŝƐϬ͘ϴϴ ƉĞƌŵŝůůŝŽŶ͕ ǁŚŝĐŚ ǁŽƵůĚ ŶŽƚ ĞǆĐĞĞĚ ƚŚĞ ^YDƚŚƌĞƐŚŽůĚ ŽĨ ϭϬ ŝŶ ŽŶĞ ŵŝůůŝŽŶ ƌĞƐŝĚĞŶƚƐ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞĐĂƌĐŝŶŽŐĞŶŝĐƌŝƐŬĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ dĂďůĞϯ͗KƉĞƌĂƚŝŽŶĂů,ĞĂůƚŚZŝƐŬ

ǆƉŽƐƵƌĞ^ĐĞŶĂƌŝŽ DĂǆŝŵƵŵĂŶĐĞƌZŝƐŬ
;ZŝƐŬƉĞƌDŝůůŝŽŶͿ΀ϭ΁΀Ϯ΁
^ŝŐŶŝĨŝĐĂŶĐĞdŚƌĞƐŚŽůĚ
;ZŝƐŬƉĞƌDŝůůŝŽŶͿ
ŚƌŽŶŝĐEŽŶĐĂŶĐĞƌ
,ĂǌĂƌĚ
ZĞƐŝĚĞŶƚƐ Ϭ͘ϴϴ ϭϬ EŽ
΀ϭ΁ZĞĨĞƌƚŽƉƉĞŶĚŝǆŽĨƚŚĞ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
΀Ϯ΁dŚĞŵĂǆŝŵƵŵĐĂŶĐĞƌƌŝƐŬǁŽƵůĚďĞĞǆƉĞƌŝĞŶĐĞĚ ĂƚƚŚĞƌĞƐŝĚĞŶĐĞƐƚŽƚŚĞƐŽƵƚŚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĂůŽŶŐWŚŝůĂĚĞůƉŚŝĂ ^ƚƌĞĞƚďĂƐĞĚŽŶ ǁŽƌƐƚͲĐĂƐĞĞǆƉŽƐƵƌĞĚƵƌĂƚŝŽŶƐĨŽƌƚŚĞWƌŽũĞĐƚ͕ϵϱƚŚƉĞƌĐĞŶƚŝůĞďƌĞĂƚŚŝŶŐƌĂƚĞƐ͕ĂŶĚϯϬͲǇĞĂƌĂǀĞƌĂŐŝŶŐƚŝŵĞ͘ 148
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϯϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
EŽŶĂƌĐŝŶŽŐĞŶŝĐ,ĂǌĂƌĚƐ
dŚĞƐŝŐŶŝĨŝĐĂŶĐĞƚŚƌĞƐŚŽůĚƐĨŽƌdŽǆŝĐŝƌŽŶƚĂŵŝŶĂŶƚƐ;dͿĞǆƉŽƐƵƌĞĂůƐŽƌĞƋƵŝƌĞĂŶĞǀĂůƵĂƚŝŽŶŽĨŶŽŶͲ ĐĂŶĐĞƌƌŝƐŬƐƚĂƚĞĚŝŶƚĞƌŵƐŽĨĂŚĂǌĂƌĚŝŶĚĞǆ͘EŽŶͲĐĂŶĐĞƌĐŚƌŽŶŝĐŝŵƉĂĐƚƐĂƌĞĐĂůĐƵůĂƚĞĚďǇĚŝǀŝĚŝŶŐƚŚĞ ĂŶŶƵĂůĂǀĞƌĂŐĞĐŽŶĐĞŶƚƌĂƚŝŽŶďǇƚŚĞZĞĨĞƌĞŶĐĞ
ǆƉŽƐƵƌĞ>ĞǀĞů;Z
>ͿĨŽƌƚŚĂƚƐƵďƐƚĂŶĐĞ͘dŚĞZ
>ŝƐĚĞĨŝŶĞĚ
ĂƐƚŚĞĐŽŶĐĞŶƚƌĂƚŝŽŶĂƚǁŚŝĐŚŶŽ ĂĚǀĞƌƐĞŶŽŶͲĐĂŶĐĞƌ ŚĞĂůƚŚĞĨĨĞĐƚƐĂƌĞĂŶƚŝĐŝƉĂƚĞĚ͘dŚĞ ƉŽƚĞŶƚŝĂůĨŽƌ ĂĐƵƚĞŶŽŶͲĐĂŶĐĞƌŚĂǌĂƌĚƐŝƐĞǀĂůƵĂƚĞĚďǇĐŽŵƉĂƌŝŶŐƚŚĞŵĂǆŝŵƵŵƐŚŽƌƚͲƚĞƌŵĞǆƉŽƐƵƌĞůĞǀĞůƚŽĂŶĂĐƵƚĞ Z
>͘Z
>ƐĂƌĞĚĞƐŝŐŶĞĚƚŽƉƌŽƚĞĐƚƐĞŶƐŝƚŝǀĞŝŶĚŝǀŝĚƵĂůƐǁŝƚŚŝŶƚŚĞƉŽƉƵůĂƚŝŽŶ͘dŚĞĐĂůĐƵůĂƚŝŽŶŽĨĂĐƵƚĞŶŽŶͲ ĐĂŶĐĞƌŝŵƉĂĐƚƐŝƐƐŝŵŝůĂƌƚŽƚŚĞƉƌŽĐĞĚƵƌĞĨŽƌĐŚƌŽŶŝĐŶŽŶͲĐĂŶĐĞƌŝŵƉĂĐƚƐ͘ ĐƵƚĞĂŶĚĐŚƌŽŶŝĐŝŵƉĂĐƚƐĂƌĞƐŚŽǁŶŝŶdĂďůĞϰ͕ŚƌŽŶŝĐĂŶĚĐƵƚĞ,ĂǌĂƌĚƐ͘ŶĂĐƵƚĞŽƌĐŚƌŽŶŝĐŚĂǌĂƌĚ ŝŶĚĞǆŽĨϭ͘ϬŝƐĐŽŶƐŝĚĞƌĞĚŝŶĚŝǀŝĚƵĂůůǇ ƐŝŐŶŝĨŝĐĂŶƚ͘dŚĞŚĂǌĂƌĚŝŶĚĞǆŝƐĐĂůĐƵůĂƚĞĚďǇĚŝǀŝĚŝŶŐƚŚĞĂĐƵƚĞŽƌ ĐŚƌŽŶŝĐĞǆƉŽƐƵƌĞďǇƚŚĞƌĞĨĞƌĞŶĐĞĞǆƉŽƐƵƌĞůĞǀĞů͘dŚĞŚŝŐŚĞƐƚŵĂǆŝŵƵŵĐŚƌŽŶŝĐĂŶĚĂĐƵƚĞŚĂǌĂƌĚŝŶĚĞǆ ĨƌŽŵ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ Ϭ͘ϬϬϬϮ ĂŶĚ Ϭ͘ϬϬϭϯ͕ƌĞƐƉĞĐƚŝǀĞůǇ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶͲĐĂƌĐŝŶŽŐĞŶŝĐ ŚĂǌĂƌĚƐĂƌĞ ĐĂůĐƵůĂƚĞĚƚŽďĞǁŝƚŚŝŶĂĐĐĞƉƚĂďůĞůŝŵŝƚƐĂŶĚĂůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͘ dĂďůĞϰ͗ŚƌŽŶŝĐĂŶĚĐƵƚĞ,ĂǌĂƌĚƐ

ŵŝƐƐŝŽŶƐ^ŽƵƌĐĞƐ ŚƌŽŶŝĐ,ĂǌĂƌĚ ĐƵƚĞ,ĂǌĂƌĚ
KƉĞƌĂƚŝŽŶĂůdƌƵĐŬƐ Ϭ͘ϬϬϬϮ Ϭ͘ϬϬϭϯ
^YDdŚƌĞƐŚŽůĚ ϭ͘Ϭ ϭ͘Ϭ
dŚƌĞƐŚŽůĚ
ǆĐĞĞĚĞĚ EŽ EŽ
ZĞĨĞƌƚŽƉƉĞŶĚŝǆ ŽĨƚŚĞ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
Ɛ ĚĞƐĐƌŝďĞĚ ĂďŽǀĞ͕ ŝŵƉĂĐƚƐ ƌĞůĂƚĞĚ ƚŽ ĐĂŶĐĞƌ ƌŝƐŬ ǁŽƵůĚ ďĞ ůĞƐƐ ƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚ͘ ĚĚŝƚŝŽŶĂůůǇ͕ ŶŽŶĐĂƌĐŝŶŽŐĞŶŝĐŚĂǌĂƌĚƐĂƌĞĐĂůĐƵůĂƚĞĚƚŽďĞǁŝƚŚŝŶĂĐĐĞƉƚĂďůĞůŝŵŝƚƐ͘/ƚƐŚŽƵůĚďĞŶŽƚĞĚƚŚĂƚƚŚĞŝŵƉĂĐƚƐ ĂƐƐĞƐƐƚŚĞ WƌŽũĞĐƚ͛Ɛ ŝŶĐƌĞŵĞŶƚĂů ĐŽŶƚƌŝďƵƚŝŽŶ ƚŽ ŚĞĂůƚŚ ƌŝƐŬ ŝŵƉĂĐƚƐ͕ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚĞ ^YD ŐƵŝĚĂŶĐĞĂŶĚŵĞƚŚŽĚŽůŽŐǇ͘dŚĞ^YDŚĂƐŶŽƚĞƐƚĂďůŝƐŚĞĚƐĞƉĂƌĂƚĞĐƵŵƵůĂƚŝǀĞƚŚƌĞƐŚŽůĚƐĂŶĚĚŽĞƐ ŶŽƚ ƌĞƋƵŝƌĞĐŽŵďŝŶŝŶŐ ŝŵƉĂĐƚƐĨƌŽŵ ĐƵŵƵůĂƚŝǀĞƉƌŽũĞĐƚƐ͘dŚĞ ^YDĐŽŶƐŝĚĞƌƐƉƌŽũĞĐƚƐƚŚĂƚĚŽ ŶŽƚ ĞǆĐĞĞĚƚŚĞ ƉƌŽũĞĐƚͲƐƉĞĐŝĨŝĐƚŚƌĞƐŚŽůĚƐƚŽŐĞŶĞƌĂůůǇŶŽƚ ďĞ ĐƵŵƵůĂƚŝǀĞůǇ ƐŝŐŶŝĨŝĐĂŶƚ͘dŚĞƌĞĨŽƌĞ͕ŝŵƉĂĐƚƐ ƌĞůĂƚĞĚƚŽŚĞĂůƚŚƌŝƐŬĨƌŽŵƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐϯͲϭ ĂŶĚ ϯͲϯ ǁĞƌĞ ŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ'W /Z͘ ,ŽǁĞǀĞƌ͕ǁŚŝůĞ ŵŝƚŝŐĂƚŝŽŶ
ŵĞĂƐƵƌĞϯͲϭ;ƐŚŽǁŶĂďŽǀĞͿŝƐĂƉƉůŝĐĂďůĞƚŽƚŚĞWƌŽũĞĐƚ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϯͲϯǁŽƵůĚ ŶŽƚĂƉƉůǇ ƚŽƚŚĞ WƌŽũĞĐƚďĞĐĂƵƐĞŝƚŝƐŝŵƉŽƐĞĚƐŽůĞůǇƵƉŽŶƚŚĞŝƚǇ͕ƌĂƚŚĞƌƚŚĂŶƚŚĞWƌŽũĞĐƚŝƚƐĞůĨ͘ ŽŶĐůƵƐŝŽŶ
ŝƌƋƵĂůŝƚǇŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽƚŚĞWƌŽũĞĐƚĂƌĞǁŝƚŚŝŶ ƚŚĞůŝŵŝƚŽĨ ŝŵƉĂĐƚƐŝĚĞŶƚŝĨŝĞĚ ďǇ ƚŚĞ^YD͘EŽ ŶĞǁ ŝŵƉĂĐƚ ƌĞůĂƚŝǀĞ ƚŽ Ăŝƌ ƋƵĂůŝƚǇ Žƌ Ă ƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶ ƚŚĞ ƐĞǀĞƌŝƚǇ ŽĨ Ă ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ĞǀĂůƵĂƚĞĚŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚƌĞƐŚŽůĚ;ĞͿ ZĞƐƵůƚ ŝŶ ŽƚŚĞƌ ĞŵŝƐƐŝŽŶƐ ;ƐƵĐŚ ĂƐ ƚŚŽƐĞ ůĞĂĚŝŶŐ ƚŽ ŽĚŽƌƐͿ ĂĚǀĞƌƐĞůǇ ĂĨĨĞĐƚŝŶŐ Ă ƐƵďƐƚĂŶƚŝĂůŶƵŵďĞƌŽĨƉĞŽƉůĞ͘΀KŶƚĂƌŝŽ'W
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dŚĞ^YD
YŝƌYƵĂůŝƚǇ,ĂŶĚďŽŽŬŝĚĞŶƚŝĨŝĞƐĐĞƌƚĂŝŶůĂŶĚƵƐĞƐĂƐƐŽƵƌĐĞƐŽĨŽĚŽƌƐ͘dŚĞƐĞůĂŶĚƵƐĞƐ ŝŶĐůƵĚĞƚŚĞĨŽůůŽǁŝŶŐ͗ĂŐƌŝĐƵůƚƵƌĞ͕ǁĂƐƚĞǁĂƚĞƌƚƌĞĂƚŵĞŶƚƉůĂŶƚ͕ĨŽŽĚƉƌŽĐĞƐƐŝŶŐƉůĂŶƚƐ͕ĐŚĞŵŝĐĂůƉůĂŶƚƐ͕ ĐŽŵƉŽƐƚŝŶŐ͕ƌĞĨŝŶĞƌŝĞƐ͕ůĂŶĚĨŝůůƐ͕ĚŝĂƌŝĞƐ͕ĂŶĚĨŝďĞƌŐůĂƐƐŵŽůĚŝŶŐ͘dŚĞWƌŽũĞĐƚŝƐĂǁĂƌĞŚŽƵƐĞĨĂĐŝůŝƚǇ ĂŶĚ ĚŽĞƐŶŽƚƉƌŽƉŽƐĞƚŽŝŶĐůƵĚĞĂŶǇŽĚŽƌͲŝŶĚƵĐŝŶŐƵƐĞƐŽŶƚŚĞWƌŽũĞĐƚƐŝƚĞ͘dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚďĞĂƐŽƵƌĐĞ ŽĨŽďũĞĐƚŝŽŶĂďůĞŽĚŽƌƐ͖ŶŽŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϰ ŝŽůŽŐŝĐĂůZĞƐŽƵƌĐĞƐ
ϰ͘ϰ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚƐŝƚĞŝƐĐƵƌƌĞŶƚůǇĚĞǀĞůŽƉĞĚ ĂŶĚŝŶĂĐƚŝǀĞƵƐĞĨŽƌŝŶĚƵƐƚƌŝĂů ǁĂƌĞŚŽƵƐŝŶŐĂĐƚŝǀŝƚŝĞƐ͘dŚĞƐĞĂĐƚŝǀŝƚŝĞƐǁŽƵůĚŝŶŚĞƌĞŶƚůǇŝŶŚŝďŝƚƚŚĞƉŽƚĞŶƚŝĂůĨŽƌƚŚĞĨŽƌŵĂƚŝŽŶŽĨƐƵŝƚĂďůĞ ŚĂďŝƚĂƚĨŽƌďŽƚŚǁŝůĚůŝĨĞĂŶĚƐĞŶƐŝƚŝǀĞǀĞŐĞƚĂƚŝŽŶ͘ůĂƌŐĞŽƉĞŶŐƌĂƐƐĂƌĞĂĞǆŝƐƚƐŝŶƚŚĞŶŽƌƚŚǁĞƐƚƉŽƌƚŝŽŶ ŽĨ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ͘,ŽǁĞǀĞƌ͕ ƚŚŝƐ ĂƌĞĂ ŝƐ ƐƵƌƌŽƵŶĚŝŶŐ ŽŶ Ăůů ƐŝĚĞƐ ďǇ ŽŶŐŽŝŶŐ ŝŶĚƵƐƚƌŝĂů ĂƌĞĂƐǁŝƚŚ ĐŽŶƐŝƐƚĞŶƚŚƵŵĂŶĂĐƚŝǀŝƚǇ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚŝƐĂƌĞĂŽĨŐƌĂƐƐǁŽƵůĚŶŽƚƐƵŝƚĂďůǇĂĐƚĂƐĂŶĞƐƚŝŶŐƐŝƚĞĨŽƌďŝƌĚ ƐƉĞĐŝĞƐƐŝŶĐĞƚŚĞĨĞǁŽƌŶĂŵĞŶƚĂůƚƌĞĞƐĂƌĞůŽĐĂƚĞĚĂĚũĂĐĞŶƚƚŽĂƌĞĂƐǁŝƚŚŚŝŐŚŚƵŵĂŶŝŶƚĞƌĂĐƚŝŽŶ͘ ĐĐŽƌĚŝŶŐƚŽ&ŝŐƵƌĞϱ͘ϰͲϭŽĨƚŚĞKŶƚĂƌŝŽ'W
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WƌŽũĞĐƚƐŝƚĞŚĂƐďĞĞŶĚĞǀĞůŽƉĞĚǁŝƚŚŝŶĚƵƐƚƌŝĂůƵƐĞƐǁŚŝĐŚǁŽƵůĚĐŽŶƚŝŶƵĞƚŽŝŶŚŝďŝƚƚŚĞŶĂƚƵƌĂůĨŽƌŵĂƚŝŽŶ ŽĨŚĂďŝƚĂƚƐĨŽƌƐƉĞĐŝĂůƐƚĂƚƵƐƐƉĞĐŝĞƐŽƌƉůĂŶƚƐ͘dŚĞƌĞĨŽƌĞ͕ŝŵƉĂĐƚƐƚŽƐĞŶƐŝƚŝǀĞƐƉĞĐŝĞƐĂŶĚƚŚĞŝƌŚĂďŝƚĂƚƐ ǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚŽŶŶĂƚƵƌĂůŚĂďŝƚĂƚƐĂŶĚƐĞŶƐŝƚŝǀĞƐƉĞĐŝĞƐ͘ůĞƐƐ ƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /ZǁŝƚŚƌĞƐƉĞĐƚƚŽŶĂƚƵƌĂůŚĂďŝƚĂƚƐĂŶĚƐĞŶƐŝƚŝǀĞ
151
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ƐƉĞĐŝĞƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞ KŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽďŝŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐ͘ dŚƌĞƐŚŽůĚ;ďͿ ,ĂǀĞĂ ƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĞĨĨĞĐƚ ŽŶĂŶǇƌŝƉĂƌŝĂŶŚĂďŝƚĂƚŽƌ ŽƚŚĞƌƐĞŶƐŝƚŝǀĞŶĂƚƵƌĂů ĐŽŵŵƵŶŝƚǇŝĚĞŶƚŝĨŝĞĚŝŶ ůŽĐĂů Žƌ ƌĞŐŝŽŶĂůƉůĂŶƐ͕ƉŽůŝĐŝĞƐ͕ ĂŶĚƌĞŐƵůĂƚŝŽŶƐŽƌďǇ ƚŚĞ ĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨ&ŝƐŚĂŶĚtŝůĚůŝĨĞŽƌh͘^͘&ŝƐŚĂŶĚtŝůĚůŝĨĞ^ĞƌǀŝĐĞ͍΀KŶƚĂƌŝŽ'W

/Z/ŵƉĂĐƚϱ͘ϰͲϮ΁
dŚƌĞƐŚŽůĚ;ĐͿ ,ĂǀĞĂƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĞĨĨĞĐƚŽŶƐƚĂƚĞŽƌ&ĞĚĞƌĂůůǇƉƌŽƚĞĐƚĞĚǁĞƚůĂŶĚƐ;ŝŶĐůƵĚŝŶŐ͕ ďƵƚŶŽƚůŝŵŝƚĞĚ ƚŽ͕ŵĂƌƐŚ͕ǀĞƌŶĂůƉŽŽů͕ĐŽĂƐƚĂů͕ĞƚĐ͘Ϳ ƚŚƌŽƵŐŚĚŝƌĞĐƚƌĞŵŽǀĂů͕ĨŝůůŝŶŐ͕ ŚǇĚƌŽůŽŐŝĐĂůŝŶƚĞƌƌƵƉƚŝŽŶ͕ŽƌŽƚŚĞƌŵĞĂŶƐ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϰͲϯ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĚĞƚĞƌŵŝŶĞĚƚŚĂƚĚĞǀĞůŽƉŵĞŶƚǁŝƚŚŝŶƚŚĞŝƚǇǁŽƵůĚ
ŶŽƚĂĚǀĞƌƐĞůǇĂĨĨĞĐƚƚŚĞŝƚǇ͛ƐƐƵƌĨĂĐĞǁĂƚĞƌƐ͕ũƵƌŝƐĚŝĐƚŝŽŶĂůǁĂƚĞƌƐ͕ǁĞƚůĂŶĚƐ͕ŽƌƌŝƉĂƌŝĂŶŚĂďŝƚĂƚƐĂƐƚŚĞ ĂƌĞĂƐƚŚĂƚĐŽƵůĚďĞĐŽŶƐŝĚĞƌĞĚǁŝƚŚŝŶƚŚĞƐĞǌŽŶĞƐǁŽƵůĚ ďĞĚĞƐŝŐŶĂƚĞĚŽƉĞŶ ƐƉĂĐĞĂŶĚĂůůŽǁĨŽƌǀĞƌǇ ůŝŵŝƚĞĚĚĞǀĞůŽƉŵĞŶƚ͘^ŽŵĞĂƌĞĂƐŶŽƚĞĚĂƐũƵƌŝƐĚŝĐƚŝŽŶĂůǁĂƚĞƌƐĂƌĞŽǁŶĞĚĂŶĚŵĂŶĂŐĞĚďǇƚŚĞŽƵŶƚǇ͘ ƌĞĂƐƵŶĚĞƌŽƵŶƚǇŵĂŶĂŐĞŵĞŶƚǁŽƵůĚŶŽƚďĞƐƵďũĞĐƚƚŽůĂŶĚƵƐĞĐŽŶƚƌŽůƐĨƌŽŵƚŚĞŝƚǇ͘ dŚĞWƌŽũĞĐƚ ƐŝƚĞŝƐƉƌĞǀŝŽƵƐůǇ ĚĞǀĞůŽƉĞĚ ǁŝƚŚ ŝŶĚƵƐƚƌŝĂůƵƐĞƐĂŶĚ ĚŽĞƐŶŽƚ ĐŽŶƚĂŝŶǁĞƚůĂŶĚŽƌƌŝƉĂƌŝĂŶ ĨĞĂƚƵƌĞƐ͘ŵĂũŽƌŝƚǇŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐĚĞǀĞůŽƉĞĚǁŝƚŚŝŶĚƵƐƚƌŝĂůƵƐĞƐǁŚŝĐŚĚŽĞƐŶŽƚŝŶĐůƵĚĞŶĂƚƵƌĂůŽƌ ŵĂŶŵĂĚĞƐƵƌĨĂĐĞǁĂƚĞƌƐ͘dŚĞƵŶĚĞǀĞůŽƉĞĚŐƌĂƐƐǇĂƌĞĂŝŶƚŚĞŶŽƌƚŚǁĞƐƚƉŽƌƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĚŽĞƐ ŶŽƚ ĐŽŶƚĂŝŶ ǁĂƚĞƌ ĨĞĂƚƵƌĞƐĂŶĚ ŝƐ ŶŽƚ ůŽĐĂƚĞĚ ĂĚũĂĐĞŶƚ ƚŽ ĂŶǇ ŽĨ ƚŚĞ ŝƚǇ͛ƐƐƵƌĨĂĐĞ ǁĂƚĞƌĨĞĂƚƵƌĞƐ͘ dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁ ŝŵƉĂĐƚƐƌĞůĂƚŝǀĞƚŽƌŝƉĂƌŝĂŶŚĂďŝƚĂƚŽƌ ŽƚŚĞƌƐĞŶƐŝƚŝǀĞŶĂƚƵƌĂůĐŽŵŵƵŶŝƚǇ ǁŽƵůĚ ďĞ ĐĂƵƐĞĚĚƵĞƚŽƚŚĞWƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚŽŶĂƋƵĂƚŝĐŚĂďŝƚĂƚƐĂŶĚƌĞƐŽƵƌĐĞƐ͘ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/ZǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞƐĞƌĞƐŽƵƌĐĞƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚ
ďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽďŝŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐ͘
dŚƌĞƐŚŽůĚ;ĚͿ /ŶƚĞƌĨĞƌĞƐƵďƐƚĂŶƚŝĂůůǇǁŝƚŚƚŚĞŵŽǀĞŵĞŶƚŽ ĨĂŶǇŶĂƚŝǀĞƌĞƐŝĚĞŶƚŽƌŵŝŐƌĂƚŽƌǇĨŝƐŚŽƌ ǁŝůĚůŝĨĞ ƐƉĞĐŝĞƐŽƌǁŝƚŚĞƐƚĂďůŝƐŚĞĚŶĂƚŝǀĞƌĞƐŝĚĞŶƚŽƌŵŝŐƌĂƚŽƌǇǁŝůĚůŝĨĞĐŽƌƌŝĚŽƌƐ͕Žƌ ŝŵƉĞĚĞƚŚĞƵƐĞŽĨŶĂƚŝǀĞǁŝůĚůŝĨĞ ŶƵƌƐĞƌǇƐŝƚĞƐ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϰͲϰ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ZĞĨĞƌĂďŽǀĞƚŽƚŚƌĞƐŚŽůĚƐĂĂŶĚďĂďŽǀĞ͘dŚĞKŶƚĂƌŝŽ'W /ZĐŽŶĐůƵĚĞĚ
ƚŚĂƚƚŚĞŝƚǇĚŽĞƐŶŽƚĨƵŶĐƚŝŽŶĂƐĂƐƵŝƚĂďůĞǁŝůĚůŝĨĞŵŽǀĞŵĞŶƚĐŽƌƌŝĚŽƌ͕ƐŝŶĐĞƚŚĞŝƚǇŝƐŵŽƐƚůǇĚĞǀĞůŽƉĞĚ͕ ǁŝƚŚŵŽƐƚ ŽĨ ƚŚĞ ůĂŶĚ ĐŽŶǀĞƌƚĞĚ ƚŽ ŝŶĚƵƐƚƌŝĂů͕ĐŽŵŵĞƌĐŝĂů͕ĂŶĚƌĞƐŝĚĞŶƚŝĂů ƵƐĞƐ͘EŽ ƌĞŐŝŽŶĂů ǁŝůĚůŝĨĞ ŵŽǀĞŵĞŶƚĐŽƌƌŝĚŽƌƐŚĂǀĞďĞĞŶŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞŝƚǇĂƐŵŽƐƚŽĨƚŚĞŝƚǇŝƐŝůůͲƐƵŝƚĞĚĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨ ǁŝůĚůŝĨĞŵŽǀĞŵĞŶƚ͘>ŽĐĂůŵŽǀĞŵĞŶƚĐŽƌƌŝĚŽƌƐǁŽƵůĚĐŽŶƐŝƐƚŽĨĨůŽŽĚ ĐŽŶƚƌŽůĐŚĂŶŶĞůƐĂŶĚ^ ĐŽƌƌŝĚŽƌƐ͘
152
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ƐƉƌĞǀŝŽƵƐůǇ ƐƚĂƚĞĚ͕ƚŚĞWƌŽũĞĐƚŚĂƐďĞĞŶ ƉƌĞǀŝŽƵƐůǇ ĚĞǀĞůŽƉĞĚ ǁŝƚŚŝŶĚƵƐƚƌŝĂůĂŶĚ ǁĂƌĞŚŽƵƐŝŶŐƵƐĞƐ ǁŝƚŚŵĂŶŵĂĚĞůĂŶĚƐĐĂƉŝŶŐŝŵƉƌŽǀĞŵĞŶƚƐƚŚĂƚǁŽƵůĚŶŽƚďĞƐƵŝƚĂďůĞĨŽƌƚŚĞŶĞƐƚŝŶŐŽĨƐĞŶƐŝƚŝǀĞƐƉĞĐŝĞƐ͘ dƌĞĞƐŽďƐĞƌǀĞĚŽŶƚŚĞWƌŽũĞĐƚƐŝƚĞǁĞƌĞůĂƌŐĞůǇŽƌŶĂŵĞŶƚĂůĂŶĚĂĚũĂĐĞŶƚƚŽĂƌĞĂƐŽĨŚŝŐŚŚƵŵĂŶƚƌĂĨĨŝĐ͘ dŚĞƌĞĨŽƌĞ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞǁŽƵůĚƌĞŵĂŝŶŝůůͲƐƵŝƚĞĚĨŽƌǁŝůĚůŝĨĞŵŽǀĞŵĞŶƚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚŽŶǁŝůĚůŝĨĞŵŽǀĞŵĞŶƚ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞ ŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽďŝŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐ͘ dŚƌĞƐŚŽůĚ;ĞͿ ŽŶĨůŝĐƚǁŝƚŚĂŶǇůŽĐĂůƉŽůŝĐŝĞƐŽƌŽƌĚŝŶĂŶĐĞƐƌĞůĂƚĞĚƚŽƉƌŽƚĞĐƚŝŶŐďŝŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐ͕ ƐƵĐŚĂƐĂƚƌĞĞƉƌĞƐĞƌǀĂƚŝŽŶƉŽůŝĐǇŽƌŽƌĚŝŶĂŶĐĞ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϰͲϱ΁
dŚƌĞƐŚŽůĚ;ĨͿ ŽŶĨůŝĐƚ ǁŝƚŚ ƚŚĞ ƉƌŽǀŝƐŝŽŶƐ ŽĨ ĂŶ ĂĚŽƉƚĞĚ ,ĂďŝƚĂƚ ŽŶƐĞƌǀĂƚŝŽŶ WůĂŶ͕ EĂƚƵƌĂů ŽŵŵƵŶŝƚǇ ŽŶƐĞƌǀĂƚŝŽŶ WůĂŶ͕Žƌ ŽƚŚĞƌ ĂƉƉƌŽǀĞĚ ůŽĐĂů͕ƌĞŐŝŽŶĂů͕Žƌ ƐƚĂƚĞ ŚĂďŝƚĂƚ ĐŽŶƐĞƌǀĂƚŝŽŶƉůĂŶ͍΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϰͲϱ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞŵĂũŽƌŝƚǇŽĨƚŚĞŝƚǇŝƐŽƵƚƐŝĚĞŽĨ ĂĐŽŶƐĞƌǀĂƚŝŽŶƉůĂŶŽƌĂƌĞĂƐŽĨůŝŬĞůŝŚŽŽĚ ĨŽƌ ƐĞŶƐŝƚŝǀĞƐƉĞĐŝĞƐ͘ĐĐŽƌĚŝŶŐƚŽƚŚĞKŶƚĂƌŝŽ'W /Z͕ĨƵƚƵƌĞ
WƌŽũĞĐƚƐǁŝƚŚŝŶ ĞƐƚĂďůŝƐŚĞĚ,ĂďŝƚĂƚŽŶƐĞƌǀĂƚŝŽŶWůĂŶ ĂƌĞĂƐƐŚŽƵůĚ ĨƵůůǇ ĂŶĂůǇǌĞƉŽƚĞŶƚŝĂů ŝŵƉĂĐƚƐƚŽ ŶĂƚƵƌĂůƐƉĞĐŝĞƐĂŶĚƐƉĞĐŝĂůƐƚĂƚƵƐƐƉĞĐŝĞƐ͘KŶĞ,ĂďŝƚĂƚŽŶƐĞƌǀĂƚŝŽŶWůĂŶĞǆŝƐƚƐǁŝƚŚŝŶƚŚĞŝƚǇ͘dŚĞƉůĂŶ ĂƌĞĂŝƐĂϭϵͲĂĐƌĞĂƌĞĂŶĞĂƌƚŚĞŝŶƚĞƌƐĞĐƚŝŽŶŽĨ'ƌĞǇƐƚŽŶĞƌŝǀĞĂŶĚƚŚĞĞĂƐƚĞƌŶŝƚǇďŽƵŶĚĂƌǇĞƐƚĂďůŝƐŚĞĚ ƚŽƉƌŽƚĞĐƚƚŚĞĞůŚŝ^ĂŶĚƐ&ůŽǁĞƌͲ>ŽǀŝŶŐ&ůǇ;^&>&Ϳ͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞŽƵƚƐŝĚĞŽĨƚŚŝƐĂƌĞĂ͘&ƵƌƚŚĞƌ͕Ă ƉŽƌƚŝŽŶŽĨƌŝƚŝĐĂů,ĂďŝƚĂƚhŶŝƚϰĨŽƌ^ĂŶĞƌŶĂƌĚŝŶŽŬĂŶŐĂƌŽŽƌĂƚ;^<ZͿĞǆŝƐƚƐŝŶƚŚĞŶŽƌƚŚĞĂƐƚĞƌŶĐŽƌŶĞƌ ŽĨƚŚĞŝƚǇ͘dŚĞWƌŽũĞĐƚƐŝƚĞǁŽƵůĚĂůƐŽďĞŽƵƚƐŝĚĞŽĨƚŚŝƐĐŽŶƐĞƌǀĂƚŝŽŶĂƌĞĂ͘dŚĞƌĞĨŽƌĞ͕ĚƵĞƚŽŝƚƐĞǆŝƐƚĞŶĐĞ ŽƵƚƐŝĚĞ ŽĨ ƚŚĞ ŝƚǇ͛ƐĞƐƚĂďůŝƐŚĞĚ ,ĂďŝƚĂƚŽŶƐĞƌǀĂƚŝŽŶ WůĂŶ ĂƌĞĂƐ͕ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ƵŶůŝŬĞůǇ ƚŽ ƐƵďƐƚĂŶƚŝĂůůǇĂĨĨĞĐƚĞƐƚĂďůŝƐŚĞĚ,ĂďŝƚĂƚŽŶƐĞƌǀĂƚŝŽŶWůĂŶƐ͘ƵĞƚŽƚŚĞWƌŽũĞĐƚƐŝƚĞ͛ƐƉƌĞǀŝŽƵƐůǇĚĞǀĞůŽƉĞĚ ƐƚĂƚĞ͕ƌĞĚĞǀĞůŽƉŵĞŶƚĂĐƚŝǀŝƚŝĞƐǁŽƵůĚďĞƵŶůŝŬĞůǇ ƚŽŝŶŚŝďŝƚƚŚĞŐŽĂůƐŽĨ,ĂďŝƚĂƚŽŶƐĞƌǀĂƚŝŽŶWůĂŶƐĂƐƚŚĞ ĂƌĞĂŝƐĐƵƌƌĞŶƚůǇĚĞǀĞůŽƉĞĚĨŽƌŝŶĚƵƐƚƌŝĂůƵƐĞƐ͘
^ŝŵŝůĂƌůǇ͕ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŶŽƚ ĐŽŶĨůŝĐƚ ǁŝƚŚ ĂŶǇ ůŽĐĂů ƉŽůŝĐŝĞƐ Žƌ ŽƌĚŝŶĂŶĐĞƐ ƉƌŽƚĞĐƚŝŶŐ ďŝŽůŽŐŝĐĂů ƌĞƐŽƵƌĐĞƐ͘tŚŝůĞƚŚĞWƌŽũĞĐƚǁŽƵůĚ ƌĞŵŽǀĞĐŽŵŵŽŶƐŚƌƵďƐĂŶĚƚƌĞĞƐĨŽƵŶĚ ŽŶƐŝƚĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ĐŽŵƉůǇǁŝƚŚƚŚĞKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ^ĞĐƚŝŽŶϭ͘Ϭϭ͘ϬϬϱ;>ͿĂŶĚϲ͘Ϭϱ͘ϬϮϬ͘ŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞKŶƚĂƌŝŽ 'W
/Z͕ŝŵƉĂĐƚƐŝŶƚŚŝƐƌĞŐĂƌĚĂƌĞĐŽŶƐŝĚĞƌĞĚůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚĨŽůůŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶƐ ŽĨƚŚĞĞǀĞůŽƉŵĞŶƚŽĚĞ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶ ĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚĐŚĂŶŐĞ
ƚŚĞĨŝŶĚŝŶŐŽĨůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƵŶĚĞƌƚŚŝƐƚŚƌĞƐŚŽůĚ͘ 153
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚŽŶĐŽŶƐĞƌǀĂƚŝŽŶƉůĂŶƐĂŶĚƉŽůŝĐŝĞƐ͘ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ
ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁ ĂŶĚͬŽƌŵŽĚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽ ďŝŽůŽŐŝĐĂů ƌĞƐŽƵƌĐĞƐ͘
KǀĞƌĂůůŝŽůŽŐŝĐĂůZĞƐŽƵƌĐĞƐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽďŝŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘

154
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϱ ƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ
ϰ͘ϱ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚƌĞƐƵůƚŝŶƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐƚŽ ƚŚĞŝƚǇ͛ƐŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞƐ͘dŚŝƐŝƐĂƚƚƌŝďƵƚĞĚƚŽƚŚĞƉŽƚĞŶƚŝĂůĚĞŵŽůŝƚŝŽŶŽĨdŝĞƌ///ƌĞƐŽƵƌĐĞƐ͕ƐŝŶĐĞƚŚĞ KŶƚĂƌŝŽ'WǁŽƵůĚƐƚƌŽŶŐůǇĞŶĐŽƵƌĂŐĞƚŚĞƉƌĞƐĞƌǀĂƚŝŽŶŽĨdŝĞƌ//ƌĞƐŽƵƌĐĞƐĂŶĚƌĞƋƵŝƌĞƚŚĞƉƌĞƐĞƌǀĂƚŝŽŶ ŽĨdŝĞƌ/ƌĞƐŽƵƌĐĞƐ͘ƐǁĞůů͕ƚŚĞKŶƚĂƌŝŽ'W
/ZĨŽƵŶĚƚŚĂƚǁŚŝůĞŝŵƉĂĐƚƐƚŽĂƌĐŚĞŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐǁŽƵůĚ ďĞ ůŽǁ͕ ƚŚĞƌĞ ŝƐ ƚŚĞ ƉŽƚĞŶƚŝĂů ƚŽ ĞŶĐŽƵŶƚĞƌ ƉƌĞǀŝŽƵƐůǇ ƵŶŬŶŽǁŶ ƉĂůĞŽŶƚŽůŽŐŝĐĂů ƌĞƐŽƵƌĐĞƐ͘Ɛ ǁĞůů͕ ĞůůĞǀƵĞĞŵĞƚĞƌǇǁĂƐŝĚĞŶƚŝĨŝĞĚĂƐĂEĂƚŝǀĞŵĞƌŝĐĂŶďƵƌŝĂůƐŝƚĞ͘WŽƚĞŶƚŝĂůŝŵƉĂĐƚƐƚŽEĂƚŝǀĞŵĞƌŝĐĂŶ ƌĞƐŽƵƌĐĞƐǁĞƌĞĨŽƵŶĚƚŽďĞƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚďƵƚŶŽƚƵŶĂǀŽŝĚĂďůĞǁŝƚŚƚŚĞƉƌŽƉĞƌƵƐĞŽĨŵŝƚŝŐĂƚŝŽŶ͘ ϰ͘ϱ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
ƵůƚƵƌĂůZĞƐŽƵƌĐĞdĞĐŚŶŝĐĂůZĞƉŽƌƚ;ZdZͿǁĂƐĐƌĞĂƚĞĚĨŽƌƚŚĞWƌŽũĞĐƚďǇ^ĂƉƉŚŽƐ ŶǀŝƌŽŶŵĞŶƚĂů͕/ŶĐ͘
ŝŶ ƵŐƵƐƚϮϬϮϭ͘ dŚĞ ƌĞƐƵůƚƐŽĨ ƚŚĞ ZdZĂƌĞ ƐƵŵŵĂƌŝǌĞĚ ŚĞƌĞŝŶ ĂŶĚ ŝŶĐůƵĚĞĚ ĂƐ ƉƉĞŶĚŝǆ ƚŽ ƚŚŝƐ ĚĚĞŶĚƵŵ͘
dŚƌĞƐŚŽůĚ;ĂͿ ĂƵƐĞĂƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĐŚĂŶŐĞŝŶƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨĂŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞƉƵƌƐƵĂŶƚ ^ĞĐƚŝŽŶϭϱϬϲϰ͘ϱ͍΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϱͲϭ΁
dŚƌĞƐŚŽůĚ;ďͿ ĂƵƐĞĂƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĐŚĂŶŐĞŝŶƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨĂŶĂƌĐŚĂĞŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞ ƉƵƌƐƵĂŶƚƚŽ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϬϲϰ͘ϱ͍΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϱͲϭĂŶĚϱ͘ϱͲϮ΁ EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'WĨŽƵŶĚƚŚĂƚĚĞƐƉŝƚĞƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƉŽůŝĐŝĞƐŝŶƚŚĞ KŶƚĂƌŝŽ 'W͕ ƚŚĞƌĞ ǁĂƐ Ɛƚŝůů Ă ƉƌĞƐĞŶƚ ƌŝƐŬ ĨŽƌ ĨƵƚƵƌĞ ĚĞǀĞůŽƉŵĞŶƚƐ ƚŽ ƐŝŐŶŝĨŝĐĂŶƚůǇ ŝŵƉĂĐƚ ŚŝƐƚŽƌŝĐĂů ƌĞƐŽƵƌĐĞƐ͘dŚĞƐĞƌŝƐŬƐ ǁĞƌĞ ĐŽŶĐůƵĚĞĚ ƚŽ ƌĞŵĂŝŶ ƐŝŐŶŝĨŝĐĂŶƚ ĂŶĚ ƵŶĂǀŽŝĚĂďůĞ ĞǀĞŶ ĂĨƚĞƌŵŝƚŝŐĂƚŝŽŶ͘ ,ŽǁĞǀĞƌ͕ĂZdZǁĂƐĐŽŶĚƵĐƚĞĚĨŽƌƚŚĞWƌŽũĞĐƚǁŚŝĐŚŝŶĐůƵĚĞĚďŽƚŚĂĨŝĞůĚƐƵƌǀĞǇŽĨƚŚĞWƌŽũĞĐƚĂƌĞĂĂƐ ǁĞůůĂƐƌĞĐŽƌĚƐĞĂƌĐŚĞƐŽĨƚŚĞĂůŝĨŽƌŶŝĂ,ŝƐƚŽƌŝĐĂůZĞƐŽƵƌĐĞƐ/ŶǀĞŶƚŽƌǇĂƚĂďĂƐĞ;,Z/Ϳ͕ƚŚĞEĂƚŝŽŶĂů ZĞŐŝƐƚĞƌŽĨ ,ŝƐƚŽƌŝĐ WůĂĐĞƐ ;EZ,WͿ͕ ƚŚĞ ĂůŝĨŽƌŶŝĂ ZĞŐŝƐƚĞƌ ŽĨ ,ŝƐƚŽƌŝĐ ZĞƐŽƵƌĐĞƐ ;Z,ZͿ͕ ĂůŝĨŽƌŶŝĂ ,ŝƐƚŽƌŝĐĂů>ĂŶĚŵĂƌŬƐ͕ĂůŝĨŽƌŶŝĂWŽŝŶƚƐŽĨ/ŶƚĞƌĞƐƚ͕ƚŚĞŝƚǇŽĨ^ŝĞƌƌĂDĂĚƌĞ,ŝƐƚŽƌŝĐĂů>ĂŶĚŵĂƌŬƐ͕ĂŶĚƚŚĞ ^ŽƵƚŚĞŶƚƌĂůŽĂƐƚĂů/ŶĨŽƌŵĂƚŝŽŶĞŶƚĞƌ;^/Ϳ͘>ŝƚĞƌĂƚƵƌĞƌĞǀŝĞǁƐǁĞƌĞĂůƐŽĐŽŶĚƵĐƚĞĚƚŽĚĞƚĞƌŵŝŶĞŝĨ ƚŚĞ ƉƌŽƉŽƐĞĚ WƌŽũĞĐƚ ǁŽƵůĚ ŚĂǀĞ ƚŚĞ ƉŽƚĞŶƚŝĂů ƚŽ ŚĂǀĞ Ă ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚ ŽŶ ƉƌĞǀŝŽƵƐůǇ ƌĞĐŽƌĚĞĚ ŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞƐ͘ϲ
dŚĞĨŝĞůĚƐƵƌǀĞǇĐŽŶĚƵĐƚĞĚĨŽƌ ƚŚĞZdZĞŶĐŽƵŶƚĞƌĞĚŶŽ ĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐǁŝƚŚŝŶƚŚĞWƌŽũĞĐƚƐŝƚĞƚŚĂƚ ǁŽƵůĚďĞĚĞĞŵĞĚƐƵďƐƚĂŶƚŝĂůŽƌƐŝŐŶŝĨŝĐĂŶƚ͘dŚĞWƌŽũĞĐƚƐŝƚĞǁĂƐŽďƐĞƌǀĞĚĂƐŚĞĂǀŝůǇĚŝƐƚƵƌďĞĚ͕ǁŝƚŚƉŝůĞƐ ŽĨ Ĩŝůů ŵĂƚĞƌŝĂů͕ƌƵďďůĞ ĂŶĚ ŵŽĚĞƌŶ ĐŽŶƐƚƌƵĐƚŝŽŶ ĚĞďƌŝƐ ƐĐĂƚƚĞƌĞĚĂĐƌŽƐƐƚŚĞ ƉƌŽƉĞƌƚǇ͘ϳ ^ŝŵŝůĂƌůǇ͕ ƚŚĞ ƌĞĐŽƌĚƐ ƐĞĂƌĐŚĨŽƌ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞĨŽƵŶĚ ŶŽ ƐŝŐŶŝĨŝĐĂŶƚ ĐƵůƚƵƌĂů ƌĞƐŽƵƌĐĞƐǁŝƚŚŝŶ ƚŚĞ ƉƌŽũĞĐƚ ƐŝƚĞ Žƌ Ϭ͘ϮϱͲŵŝůĞďƵĨĨĞƌ ƐƚƵĚǇĂƌĞĂ͘ϴ&ƵƌƚŚĞƌŵŽƌĞ͕WƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶǁŽƵůĚ ŝŶĐůƵĚĞ ƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨ Ă dŝĞƌϯĞƚĞƌŵŝŶĂƚŝŽŶĨŽƌĐŽŶƐŝĚĞƌĂƚŝŽŶďǇƚŚĞ,ŝƐƚŽƌŝĐWƌĞƐĞƌǀĂƚŝŽŶ^ƵďĐŽŵŵŝƚƚĞĞ;,W^ͿĂůŽŶŐǁŝƚŚƚŚĞ ŶĞĐĞƐƐĂƌǇĞƌƚŝĨŝĐĂƚĞŽĨƉƉƌŽƉƌŝĂƚĞŶĞƐƐĞŶƚŝƚůĞŵĞŶƚĂƉƉůŝĐĂƚŝŽŶ;ƐĞĞ^ĞĐƚŝŽŶϮ͘ϰĨŽƌŵŽƌĞĚĞƚĂŝůͿ͘dŚŝƐ ƉƌŽĐĞƐƐǁŽƵůĚĨƵƌƚŚĞƌƌĞĚƵĐĞƚŚĞƉŽƚĞŶƚŝĂůĨŽƌƐƵďƐƚĂŶƚŝĂůŝŵƉĂĐƚƐ͘ ϵDŝƚŝŐĂƚŝŽŶŝƐĂůƐŽƉƌŽƉŽƐĞĚŝŶŽƌĚĞƌ ϲ
^ĂƉƉŚŽƐ
ŶǀŝƌŽŶŵĞŶƚĂů͕/ŶĐ͘;ϮϬϮϭͿ͘ϭϵϰϴ^͘ŽŶsŝĞǁǀĞŶƵĞ͕KŶƚĂƌŝŽ͕ĂůŝĨŽƌŶŝĂ ƵůƚƵƌĂů ZĞƐŽƵƌĐĞƐdĞĐŚŶŝĐĂůZĞƉŽƌƚ͘WĂŐĞϮϭ͘ ϳ /ďŝĚ͘WĂŐĞϮϮ͘
ϴ
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ϵ
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155
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ƚŽ ĨƵƌƚŚĞƌ ŵŝŶŝŵŝǌĞ ƉŽƚĞŶƚŝĂů ŝŵƉĂĐƚƐ͘tŝƚŚ ŵŝƚŝŐĂƚŝŽŶ ŝŵƉůĞŵĞŶƚĞĚ͕ ŝŵƉĂĐƚƐ ǁŽƵůĚ ďĞ ůĞƐƐ ƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐϱͲϭ ƚŚƌŽƵŐŚ ϱͲϰ ǁĞƌĞƉƌŽƉŽƐĞĚ ǁŝƚŚŝŶ ƚŚĞKŶƚĂƌŝŽ 'W /ZƚŽŵŝƚŝŐĂƚĞƉŽƚĞŶƚŝĂů
ŝŵƉĂĐƚƐ͘,ŽǁĞǀĞƌ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϱͲϭŝƐŶŽƚĂƉƉůŝĐĂďůĞƐŝŶĐĞƚŚĞWƌŽũĞĐƚŝƐŶŽƚǁŝƚŚŝŶĂ&ŽĐƵƐĂƌĞĂĂƐ ĚĞŵĂƌĐĂƚĞĚďǇ&ŝŐƵƌĞϯͲϰ ŽĨ ƚŚĞKŶƚĂƌŝŽ'W
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dŚĞWƌŽũĞĐƚǁŽƵůĚ ƌĞƐƵůƚŝŶ ŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚŽŶ ĂŚŝƐƚŽƌŝĐŽƌĂƌĐŚĂĞŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞ͘EŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĨƌŽŵ ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĞǀĂůƵĂƚĞĚŝŶ ƚŚĞ KŶƚĂƌŝŽ'W ǁŽƵůĚŽĐĐƵƌ͘&ƵƌƚŚĞƌŵŽƌĞ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚ ŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶ ĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'WǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚ ŝŵƉĂĐƚƚŚĞƉƌŝŽƌ ĨŝŶĚŝŶŐ ŽĨ ůĞƐƐ ƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚ ǁŝƚŚ ŵŝƚŝŐĂƚŝŽŶ ƵŶĚĞƌ ƚŚŝƐ ƚŚƌĞƐŚŽůĚ͘ dŚĞ ĂďŽǀĞ ͲƌĞĨĞƌĞŶĐĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/ZĂƌĞĂƉƉůŝĐĂďůĞ͘
dŚƌĞƐŚŽůĚ;ĐͿ ŝƌĞĐƚůǇ Žƌ ŝŶĚŝƌĞĐƚůǇ ĚĞƐƚƌŽǇĂ ƵŶŝƋƵĞ ƉĂůĞŽŶƚŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞŽƌ ƐŝƚĞ Žƌ ƵŶŝƋƵĞ ŐĞŽůŽŐŝĐĨĞĂƚƵƌĞ͘΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϱͲϮ΁΀EŽůŽŶŐĞƌŝŶĐůƵĚĞĚŝŶƚŚŝƐƐĞĐƚŝŽŶƉĞƌƚŚĞ ϮϬϮϭ
YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
EŽ ŶĞǁ ŽƌDŽƌĞ ^ŝŐŶŝĨŝĐĂŶƚ/ŵƉĂĐƚ͗WĂůĞŽŶƚŽůŽŐŝĐĂů ƌĞƐŽƵƌĐĞƐĂŶĚ ŐĞŽůŽŐŝĐ ĨĞĂƚƵƌĞƐĂƌĞ ĚŝƐĐƵƐƐĞĚ ĚŝƐĐƵƐƐŝŽŶϰ͘ϲ;ĨͿďĞůŽǁ͘
dŚƌĞƐŚŽůĚ;ĚͿ ŝƐƚƵƌďĂŶǇŚƵŵĂŶƌĞŵĂŝŶƐ͕ŝŶĐůƵĚŝŶŐƚŚŽƐĞŝŶƚĞƌƌĞĚŽƵƚƐŝĚĞŽĨĨŽƌŵĂů ĐĞŵĞƚĞƌŝĞƐ͍ ΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϱͲϯ΁
EŽŶĞǁŽƌDŽƌĞ^ŝŐŶŝĨŝĐĂŶƚ/ŵƉĂĐƚ͗dŚĞZdZĨŽƵŶĚƚŚĂƚŶŽĐĞŵĞƚĞƌŝĞƐŽƌďƵƌŝĂůƐŝƚĞƐǁĞƌĞŽďƐĞƌǀĞĚĂƐ Ă ƌĞƐƵůƚ ŽĨ ƚŚĞ ƌĞǀŝĞǁ ŽĨ ŚŝƐƚŽƌŝĐ ĂĞƌŝĂů ƉŚŽƚŽŐƌĂƉŚƐĂŶĚ ŚŝƐƚŽƌŝĐ ƚŽƉŽŐƌĂƉŚŝĐŵĂƉƐ͘ Ɛ ǁĞůů͕ ŝƚ ǁĂƐ ĚĞƚĞƌŵŝŶĞĚ ƚŚĂƚ ƚŚĞ ƉŽƚĞŶƚŝĂů ƚŽ ĞŶĐŽƵŶƚĞƌ ŚƵŵĂŶ ƌĞŵĂŝŶƐ ǁĞƌĞ ůŽǁ ďĂƐĞĚ ŽŶ ƚŚĞ ŝŶŚĞƌĞŶƚ ĐŚĂƌĂĐƚĞƌŝƐƚŝĐƐĂŶĚůŽĐĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚĂƌĞĂ͘,ŽǁĞǀĞƌ͕ƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐŵĂǇďĞĞŶĐŽƵŶƚĞƌĞĚ ĚƵƌŝŶŐŐƌŽƵŶĚŵŽǀŝŶŐĂĐƚŝǀŝƚŝĞƐ͘/ŶŽƌĚĞƌƚŽŵŝŶŝŵŝǌĞƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŝŶĐŽƌƉŽƌĂƚĞ ^ƚĂŶĚĂƌĚŽŶĚŝƚŝŽŶEŽ͘ϭĨƌŽŵWƵďůŝĐZĞƐŽƵƌĐĞƐŽĚĞ^ĞĐƚŝŽŶϱϬϵϳ͘dŚŝƐǁŽƵůĚĂůůŽǁŝŵƉĂĐƚƐƚŽƌĞŵĂŝŶ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘
156
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞ ƉƌŽƉŽƐĞĚ ǁŝƚŚŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z͘,ŽǁĞǀĞƌ͕ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ WƵďůŝĐ
ZĞƐŽƵƌĐĞƐŽĚĞ^ĞĐƚŝŽŶϱϬϵϳ͘ϵϴ;^ƚĂŶĚĂƌĚŽŶĚŝƚŝŽŶEŽ͘ϭƐŚŽǁŶďĞůŽǁͿŝƐƉƌŽƉŽƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W

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^ƚĂŶĚĂƌĚŽŶĚŝƚŝŽŶEŽ͘ϭ
/ĨƚŚĞŽƵŶƚǇŽƌŽŶĞƌĚĞƚĞƌŵŝŶĞƐƚŚĂƚƚŚĞƌĞŵĂŝŶƐĂƌĞŽƌĂƌĞďĞůŝĞǀĞĚƚŽďĞEĂƚŝǀĞŵĞƌŝĐĂŶ͕ ƐͬŚĞ ƐŚĂůů ŶŽƚŝĨǇ ƚŚĞ EĂƚŝǀĞ ŵĞƌŝĐĂŶ ,ĞƌŝƚĂŐĞ ŽŵŵŝƐƐŝŽŶ ;E,Ϳ ŝŶ ^ĂĐƌĂŵĞŶƚŽ ǁŝƚŚŝŶ ϮϰŚŽƵƌƐ͘/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ĞĐƚŝŽŶϱϬϵϳ͘ϵϴŽĨƚŚĞĂůŝĨŽƌŶŝĂ WZ͕ƚŚĞE,ƐŚĂůůŝŵŵĞĚŝĂƚĞůǇ ŶŽƚŝĨǇ ƚŚĞ ƉĞƌƐŽŶ;ƐͿ ŝƚ ďĞůŝĞǀĞƐ ƚŽ ďĞ ƚŚĞ DŽƐƚ >ŝŬĞůǇ ĞƐĐĞŶĚĂŶƚ ŽĨ ƚŚĞ ĚĞĐĞĂƐĞĚEĂƚŝǀĞ ŵĞƌŝĐĂŶ͘dŚĞĚĞƐĐĞŶĚĂŶƚƐƐŚĂůůĐŽŵƉůĞƚĞƚŚĞŝƌŝŶƐƉĞĐƚŝŽŶĂŶĚŵĂŬĞĂƌĞĐŽŵŵĞŶĚĂƚŝŽŶǁŝƚŚŝŶ ϰϴŚŽƵƌƐŽĨ ďĞŝŶŐ ŐƌĂŶƚĞĚ ĂĐĐĞƐƐƚŽƚŚĞƐŝƚĞ͘dŚĞĚĞƐŝŐŶĂƚĞĚEĂƚŝǀĞŵĞƌŝĐĂŶƌĞƉƌĞƐĞŶƚĂƚŝǀĞ ǁŽƵůĚ ƚŚĞŶ ĚĞƚĞƌŵŝŶĞ͕ ŝŶ ĐŽŶƐƵůƚĂƚŝŽŶ ǁŝƚŚ ƚŚĞ >ŽƐ ŶŐĞůĞƐ ŽƵŶƚǇ DĞƚƌŽƉŽůŝƚĂŶ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ƵƚŚŽƌŝƚǇ ;DĞƚƌŽͿ͕ ƚŚĞ ĚŝƐƉŽƐŝƚŝŽŶ ŽĨ ƚŚĞ ŚƵŵĂŶ ƌĞŵĂŝŶƐ͘ dŚĞ DŽƐƚ >ŝŬĞůǇ ĞƐĐĞŶĚĂŶƚ͛ƐƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐŚĂůůďĞĨŽůůŽǁĞĚ ŝĨĨĞĂƐŝďůĞĂŶĚŵĂǇŝŶĐůƵĚĞƐĐŝĞŶƚŝĨŝĐƌĞŵŽǀĂů ĂŶĚ ŶŽŶͲĚĞƐƚƌƵĐƚŝǀĞ ĂŶĂůǇƐŝƐ ŽĨ ƚŚĞ ŚƵŵĂŶ ƌĞŵĂŝŶƐ ĂŶĚ ĂŶǇ ŝƚĞŵƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ EĂƚŝǀĞ ŵĞƌŝĐĂŶďƵƌŝĂůƐ͘/ĨDĞƚƌŽƌĞũĞĐƚƐƚŚĞDŽƐƚ>ŝŬĞůǇĞƐĐĞŶĚĂŶƚ͛ƐƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ͕ƚŚĞĂŐĞŶĐǇ ƐŚĂůůƌĞďƵƌǇƚŚĞƌĞŵĂŝŶƐǁŝƚŚĂƉƉƌŽƉƌŝĂƚĞ ĚŝŐŶŝƚǇŽŶƚŚĞƉƌŽƉĞƌƚǇŝŶĂůŽĐĂƚŝŽŶƚŚĂƚǁŝůůŶŽƚďĞ ƐƵďũĞĐƚƚŽĨƵƌƚŚĞƌƐƵďƐƵƌĨĂĐĞĚŝƐƚƵƌďĂŶĐĞ;ϭϰĂůŝĨŽƌŶŝĂ ŽĚĞŽĨZĞŐƵůĂƚŝŽŶƐΑϭϱϬϲϰ͘ϱ;ĞͿͿ͘ ŽŶĐůƵƐŝŽŶ
dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚŝŶ ŶŽ ŶĞǁ Žƌ ŵŽƌĞ ƐĞǀĞƌĞŝŵƉĂĐƚ ƉĞƌƚĂŝŶŝŶŐ ƚŽ ƚŚĞ ĚŝƐƚƵƌďĂŶĐĞ ŽĨ ŚƵŵĂŶ ƌĞŵĂŝŶƐ͘dŚĞ WƌŽũĞĐƚ ŝƐ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚĞ KŶƚĂƌŝŽ 'W /Z͘dŚĞ ZdZĚŝĚ ŶŽƚ ĨŝŶĚ ŶĞǁ ƉŽƚĞŶƚŝĂůůǇ
ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚƌĞŐĂƌĚŝŶŐŚŝƐƚŽƌŝĐĂůŽƌĂƌĐŚĂĞŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞ͕ŽƌŚƵŵĂŶ ƌĞŵĂŝŶƐ͖ƚŚĞƌĞĨŽƌĞ͕ŶŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ͕ďƵƚƚŚĞWƌŽũĞĐƚŵƵƐƚĐŽŵƉůǇǁŝƚŚƚŚĞĂďŽǀĞ ƌĞĨĞƌĞŶĐĞĚĂƉƉůŝĐĂďůĞ&
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KǀĞƌĂůůƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ
ďǇ ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚ ƌĞƐƵůƚŝŶ ĂŶǇŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐǁŝƚŚƌĞƐƉĞĐƚƚŽĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐ͘ dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂŶ^
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157
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϲ 'ĞŽůŽŐǇĂŶĚ^ŽŝůƐ
ϰ͘ϲ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞ KŶƚĂƌŝŽ 'W
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ϰ͘ϲ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ ŝƌĞĐƚůǇŽƌŝŶĚŝƌĞĐƚůǇĐĂƵƐĞƉŽƚĞŶƚŝĂůƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĞĨĨĞĐƚƐ͕ŝŶĐůƵĚŝŶŐƚŚĞƌŝƐŬůŽƐƐ͕ ŝŶũƵƌǇ͕ŽƌĚĞĂƚŚŝŶǀŽůǀŝŶŐ͗
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;ŝǀͿ >ĂŶĚƐůŝĚĞƐ͍΀EŽƚĂŶĂůǇǌĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞůƋƵŝƐƚͲWƌŝŽůŽŽŶĞƐ^ƉĞĐŝĂů^ƚƵĚŝĞƐĐƚĚĞĨŝŶĞƐĂĐƚŝǀĞĨĂƵůƚƐĂƐƚŚŽƐĞ ƚŚĂƚŚĂǀĞĞǆƉĞƌŝĞŶĐĞĚƐƵƌĨĂĐĞĚŝƐƉůĂĐĞŵĞŶƚŽƌŵŽǀĞŵĞŶƚĚƵƌŝŶŐƚŚĞůĂƐƚϭϭ͕ϬϬϬǇĞĂƌƐ͘dŚĞKŶƚĂƌŝŽ'W

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WƌŽũĞĐƚĂƌĞĂďŽƵŶĚĂƌŝĞƐ͘ĐĐŽƌĚŝŶŐƚŽ &ŝŐƵƌĞϱ͘ϳͲϮŽĨ ƚŚĞKŶƚĂƌŝŽ'W /ZƚŚĞŶĞĂƌĞƐƚĨĂƵůƚ ůŝŶĞ ƚŽƚŚĞ
WƌŽũĞĐƚƐŝƚĞŝƐƚŚĞŚŝŶŽĞŶƚƌĂůsĂůůĞǇ&ĂƵůƚ͕ůŽĐĂƚĞĚĂƉƉƌŽǆŝŵĂƚĞůǇĨŝǀĞŵŝůĞƐƐŽƵƚŚǁĞƐƚŽĨƚŚĞWƌŽũĞĐƚ ƐŝƚĞ͘&ƵƌƚŚĞƌŵŽƌĞ͕ĂůůĚĞǀĞůŽƉŵĞŶƚǁŽƵůĚĐŽŵƉůǇǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞ&ĞĚĞƌĂů͕^ƚĂƚĞ͕ĂŶĚůŽĐĂůƌĞŐƵůĂƚŝŽŶƐ ƌĞŐĂƌĚŝŶŐƐĞŝƐŵŝĐŝƚǇĂŶĚĨĂƵůƚŚĂǌĂƌĚƐƐƵĐŚĂƐƚŚĞĂůŝĨŽƌŶŝĂƵŝůĚŝŶŐŽĚĞ;ͿǁŚŝĐŚǁĂƐĂĚŽƉƚĞĚŽŶ :ĂŶƵĂƌǇϭ͕ϮϬϮϬ͘dŚĞŝŶĐůƵĚĞƐ ĚĞƚĂŝůĞĚĚĞƐŝŐŶƌĞƋƵŝƌĞŵĞŶƚƐƌĞůĂƚĞĚƚŽ ƐƚƌƵĐƚƵƌĂůĚĞƐŝŐŶ͕ƐŽŝůƐ ĂŶĚ ĨŽƵŶĚĂƚŝŽŶƐ͕ĂŶĚŐƌĂĚŝŶŐƚŽĞŶƐƵƌĞƚŚĂƚƉƵďůŝĐƐĂĨĞƚǇƌŝƐŬƐĚƵĞƚŽƐĞŝƐŵŝĐƐŚĂŬŝŶŐĂƌĞŵŝŶŝŵŝǌĞĚƚŽůĞǀĞůƐ ďĞůŽǁƐŝŐŶŝĨŝĐĂŶƚ͘
>ŝƋƵĞĨĂĐƚŝŽŶĂŶĚ>ĂŶĚƐůŝĚĞƐ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽƐƵƐĐĞƉƚŝďŝůŝƚǇƚŽůĂŶĚƐůŝĚĞ͕ůŝƋƵĞĨĂĐƚŝŽŶ͕ ŽƌƐĞŝƐŵŝĐĞĨĨĞĐƚƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚ
ďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽŐĞŽůŽŐŝĐĂůŚĂǌĂƌĚƐ͘
dŚƌĞƐŚŽůĚ;ďͿ ZĞƐƵůƚŝŶƐƵďƐƚĂŶƚŝĂůĞƌŽƐŝŽŶŽƌůŽƐƐŽĨƚŽƉƐŽŝů͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϳͲϮ΁
dŚƌĞƐŚŽůĚ;ĐͿ ĞůŽĐĂƚĞĚŽŶĂŐĞŽůŽŐŝĐƵŶŝƚŽƌƐŽŝůƚŚĂƚŝƐƵŶƐƚĂďůĞ͕ŽƌƚŚĂƚǁŽƵůĚďĞĐŽŵĞƵŶƐƚĂďůĞĂƐ Ă ƌĞƐƵůƚ ŽĨ ƚŚĞ WƌŽũĞĐƚ͕ ĂŶĚ ƉŽƚĞŶƚŝĂůůǇ ƌĞƐƵůƚ ŝŶ ŽŶ Ͳ Žƌ ŽĨĨͲƐŝƚĞ ůĂŶĚƐůŝĚĞ͕ ůĂƚĞƌĂů ƐƉƌĞĂĚŝŶŐ͕ƐƵďƐŝĚĞŶĐĞ͕ůŝƋƵĞĨĂĐƚŝŽŶŽƌĐŽůůĂƉƐĞ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϳͲϮ΁
dŚƌĞƐŚŽůĚ;ĚͿ ĞůŽĐĂƚĞĚŽŶĞǆƉĂŶƐŝǀĞƐŽŝů͕ĂƐĚĞĨŝŶĞĚŝŶdĂďůĞϭϴͲϭͲŽĨƚŚĞhŶŝĨŽƌŵƵŝůĚŝŶŐŽĚĞ͕ ĐƌĞĂƚŝŶŐ ƐƵďƐƚĂŶƚŝĂů ĚŝƌĞĐƚ Žƌ ŝŶĚŝƌĞĐƚ ƌŝƐŬƐ ƚŽ ůŝĨĞ Žƌ ƉƌŽƉĞƌƚǇ͍ ΀KŶƚĂƌŝŽ'W /Z
/ŵƉĂĐƚϱ͘ϳͲϮ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƐŽŝůƐǁŝƚŚŝŶƚŚĞŝƚǇŚĂǀĞƚŚĞƉŽƚĞŶƚŝĂů ƚŽŐĞŶĞƌĂƚĞŚĂǌĂƌĚƐŝŶƚŚĞĨŽƌŵŽĨŐƌŽƵŶĚƐƵďƐŝƐƚĞŶĐĞ͕ĞƌŽƐŝŽŶ͕ĂŶĚƵŶƐƚĂďůĞƐŽŝůƐ͘/ƚǁĂƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚ ĨƵƚƵƌĞƉƌŽũĞĐƚƐ͛ĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞǁŽƵůĚƌĞĚƵĐĞŝŵƉĂĐƚƐĨƌŽŵƵŶƐƚĂďůĞƐŽŝůƐƚŽŝŶƐŝŐŶŝĨŝĐĂŶƚůĞǀĞůƐ͘ &ƵƌƚŚĞƌ͕ĨƵƚƵƌĞƉƌŽũĞĐƚƐ͛ĂĚŽƉƚŝŽŶ ŽĨ EĂƚŝŽŶĂůWŽůůƵƚĂŶƚŝƐĐŚĂƌŐĞ ůŝŵŝŶĂƚŝŽŶ^ǇƐƚĞŵ;EW
^Ϳ ƉĞƌŵŝƚƐ
ĂŶĚ ĂĐĐŽŵƉĂŶŝĞĚ ^ƚŽƌŵǁĂƚĞƌ WŽůůƵƚŝŽŶ WƌĞǀĞŶƚŝŽŶ WůĂŶƐ ;^tWWWƐͿ ǁŽƵůĚ ƌĞĚƵĐĞ ƉŽƚĞŶƚŝĂů ƌŝƐŬƐ ŽĨ ĞƌŽƐŝŽŶ͘
dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶƐŝŐŶŝĨŝĐĂŶƚƐŽŝůĞƌŽƐŝŽŶŽƌůŽƐƐŽĨƚŽƉƐŽŝůďĞĐĂƵƐĞŽĨƚŚĞƉƌĞǀŝŽƵƐůǇĚŝƐƚƵƌďĞĚ ĂŶĚĚĞǀĞůŽƉĞĚŶĂƚƵƌĞŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĂŶĚƚŚĞůŝŵŝƚĞĚƐŝǌĞĂŶĚƐĐŽƉĞŽĨƚŚĞWƌŽũĞĐƚ͘'ƌĂĚŝŶŐŝŶĐƌĞĂƐĞƐ ƚŚĞ ƉŽƚĞŶƚŝĂůĨŽƌ ĞƌŽƐŝŽŶ ďǇ ƌĞŵŽǀŝŶŐ ƉƌŽƚĞĐƚŝǀĞǀĞŐĞƚĂƚŝŽŶ͕ĐŚĂŶŐŝŶŐŶĂƚƵƌĂůĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶƐ͕ĂŶĚ ĐŽŶƐƚƌƵĐƚŝŶŐƐůŽƉĞƐ͘/ŶĂĚĚŝƚŝŽŶ͕ƚŚĞŝƚǇƌĞƋƵŝƌĞƐĂŶĞƌŽƐŝŽŶͬĚƵƐƚĐŽŶƚƌŽůƉůĂŶĨŽƌƉƌŽũĞĐƚƐůŽĐĂƚĞĚǁŝƚŚŝŶ ƚŚŝƐĂƌĞĂ͘dŚĞWƌŽũĞĐƚ ǁŽƵůĚ ĂůƐŽďĞ ƌĞƋƵŝƌĞĚ ƚŽĐŽŵƉůǇ ǁŝƚŚ ĂůůƌĞƋƵŝƌĞŵĞŶƚƐƐĞƚĨŽƌƚŚ ŝŶ ƚŚĞ EW ^
ƉĞƌŵŝƚĨŽƌ ĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐ;Ğ͘Ő͕͘ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨ ĞƐƚDĂŶĂŐĞŵĞŶƚWƌĂĐƚŝĐĞƐ΀DWƐ΁ƚŚƌŽƵŐŚ ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^tWWWͿ͕ƌĞĚƵĐŝŶŐƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐƚŽůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚůĞǀĞůƐ͘ ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚĂůƐŽďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůǇǁŝƚŚƚŚĞĂŶĚƵŶĚĞƌŐŽƌĞǀŝĞǁŽĨŐƌĂĚŝŶŐ ƉůĂŶƐďǇƚŚĞŝƚǇ
ŶŐŝŶĞĞƌǁŚŽǁŽƵůĚĞŶƐƵƌĞŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐǁŽƵůĚŽĐĐƵƌ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘
159
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϰϱ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽƐƵƐĐĞƉƚŝďŝůŝƚǇƚŽŚĂǌĂƌĚƐĨƌŽŵůĂŶĚĨĂŝůƵƌĞ ĂŶĚĞƌŽƐŝŽŶ͘ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚ ŝŶƚŚĞKŶƚĂƌŝŽ 'W /Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞ
ĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚ KŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚ ŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽŐĞŽůŽŐŝĐĂůŚĂǌĂƌĚƐ͘
dŚƌĞƐŚŽůĚ;ĞͿ ,ĂǀĞƐŽŝůƐŝŶĐĂƉĂďůĞŽĨĂĚĞƋƵĂƚĞůǇƐƵƉƉŽƌƚŝŶŐƚŚĞƵƐĞŽĨ ƐĞƉƚŝĐƚĂŶŬƐŽƌĂůƚĞƌŶĂƚŝǀĞ ǁĂƐƚĞǁĂƚĞƌĚŝƐƉŽƐĂůƐǇƐƚĞŵƐǁŚĞƌĞƐĞǁĞƌĂƌĞŶŽƚĂǀĂŝůĂďůĞĨŽƌƚŚĞĚŝƐƉŽƐĂůŽĨǁĂƐƚĞ ǁĂƚĞƌ͍΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϳͲϯ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZŶŽƚĞƐƚŚĂƚƐĞƉƚŝĐƚĂŶŬƐĂƌĞŶŽƚƵƐĞĚǁŝƚŚŝŶƚŚĞŝƚǇ ĂƐǁĂƐƚĞǁĂƚĞƌŝƐƐĞƌǀŝĐĞĚďǇƚŚĞ/ŶůĂŶĚ
ŵƉŝƌĞhƚŝůŝƚŝĞƐŐĞŶĐǇ;/
hͿ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚ
ƌĞƋƵŝƌĞƚŚĞƐƵƉƉŽƌƚŽĨƐĞƉƚŝĐƚĂŶŬƵƐĂŐĞ͘&ƵƌƚŚĞƌ͕ƚŚĞƉƌĞǀŝŽƵƐĚĞǀĞůŽƉŵĞŶƚǁŚŝĐŚĐƵƌƌĞŶƚůǇŽĐĐƵƉŝĞƐƚŚĞ WƌŽũĞĐƚĂƌĞĂǁŽƵůĚƐŝŵŝůĂƌůǇƵƚŝůŝǌĞƚŚĞ/
hŝŶƐƚĞĂĚŽĨƐĞƉƚŝĐƚĂŶŬƐ͘&ƵƌƚŚĞƌŵŽƌĞ͕ĂĐĐŽƌĚŝŶŐƚŽƚŚĞWŚĂƐĞ / ƐƚƵĚǇ ĐŽŶĚƵĐƚĞĚ ĨŽƌ ƚŚĞ WƌŽũĞĐƚ͕ ŶŽ ƵŶĚĞƌŐƌŽƵŶĚ ƐƚŽƌĂŐĞ ƚĂŶŬƐ ;h^dƐͿ ǁĞƌĞ ŽďƐĞƌǀĞĚ ĚƵƌŝŶŐ ƌĞĐŽŶŶĂŝƐƐĂŶĐĞŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͘ϭϭdŚĞƌĞĨŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƉƌŽƉŽƐĞƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƐĞƉƚŝĐ ƚĂŶŬƐĂŶĚǁŽƵůĚŶŽƚƌĞƋƵŝƌĞƚŚĞƌĞŵŽǀĂůŽĨƐĞƉƚŝĐƚĂŶŬƐŽƌŽƚŚĞƌƵŶĚĞƌŐƌŽƵŶĚƚĂŶŬƐ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽƚŚĞƉƌĞƐĞŶĐĞŽĨƐĞƉƚŝĐƚĂŶŬƐ͘ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ
ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽƐŽŝůŚĂǌĂƌĚƐŝŶ ƌĞůĂƚŝŽŶƚŽƐĞƉƚŝĐƐǇƐƚĞŵƐ͘
dŚƌĞƐŚŽůĚ;ĨͿ ŝƌĞĐƚůǇ Žƌ ŝŶĚŝƌĞĐƚůǇ ĚĞƐƚƌŽǇĂ ƵŶŝƋƵĞ ƉĂůĞŽŶƚŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞŽƌ ƐŝƚĞ Žƌ ƵŶŝƋƵĞ ŐĞŽůŽŐŝĐĨĞĂƚƵƌĞ͍΀EŽƚĂŶĂůǇǌĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ƐƉƌĞǀŝŽƵƐůǇƐƚĂƚĞĚ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŚĂƐďĞĞŶƉƌĞǀŝŽƵƐůǇĚĞǀĞůŽƉĞĚǁŝƚŚƌĞƐŝĚĞŶƚŝĂůĂŶĚŝŶĚƵƐƚƌŝĂůƵƐĞƐ ǁŚŝĐŚ ǁŽƵůĚ ŚĂǀĞ ŝŶǀŽůǀĞĚ ŐƌŽƵŶĚ ŵŽǀŝŶŐ ĂĐƚŝǀŝƚŝĞƐƐƵĐŚ ĂƐůĂŶĚ ĐůĞĂƌŝŶŐ ĂŶĚ ŐƌĂĚŝŶŐ ĚƵƌŝŶŐ ƚŚĞŝƌ ĐŽŶƐƚƌƵĐƚŝŽŶ͘ZĞĚĞǀĞůŽƉŵĞŶƚŽĨ ƚŚĞƐŝƚĞǁŽƵůĚ ďĞƵŶůŝŬĞůǇ ƚŽĞŶĐŽƵŶƚĞƌŶĞǁƉĂůĞŽŶƚŽůŽŐŝĐĂůĨĞĂƚƵƌĞƐ͘ ^ŝŵŝůĂƌůǇ͕ƵŶŝƋƵĞ ŐĞŽůŽŐŝĐĂůĨĞĂƚƵƌĞƐǁŽƵůĚďĞƵŶůŝŬĞůǇ ƚŽďĞĞŶĐŽƵŶƚĞƌĞĚĚƵĞƚŽƚŚĞĚĞǀĞůŽƉĞĚƐƚĂƚĞŽĨ ƚŚĞWƌŽũĞĐƚƐŝƚĞ͘/ŵƉĂĐƚƐĂƌĞĂŶƚŝĐŝƉĂƚĞĚƚŽďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ϭϭKƌŝŽŶ
ŶǀŝƌŽŶŵĞŶƚĂů/ŶĐ͘WŚĂƐĞ/
ŶǀŝƌŽŶŵĞŶƚĂů ^ŝƚĞƐƐĞƐƐŵĞŶƚ^ŽƵƚŚŽŶsŝĞǁǀĞŶƵĞĂŶĚ ĂƐƚĞĚĂƌ^ƚƌĞĞƚKŶƚĂƌŝŽ͕ĂůŝĨŽƌŶŝĂ ĚĂƚĞĚ
ƉƌŝůϮϬϮϭ͘WĂŐĞϰͲϰ͘
160
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶĐůƵƐŝŽŶ
dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚ ŝŶ ŶŽ ŶĞǁ Žƌ ŵŽƌĞ ƐĞǀĞƌĞŝŵƉĂĐƚ ĚƵĞ ƚŽ ƚŚĞ ƉƌĞƐĞŶĐĞ ŽĨ ƉĂůĞŽŶƚŽůŽŐŝĐĂů ƌĞƐŽƵƌĐĞƐ͘ ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ǁĂƐ ŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z͘dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ
ĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚ KŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚ ŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽƉĂůĞŽŶƚŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞƐ͘
KǀĞƌĂůů'ĞŽůŽŐǇĂŶĚ^ŽŝůƐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽŐĞŽůŽŐǇĂŶĚƐŽŝůƐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
161
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϳ 'ƌĞĞŶŚŽƵƐĞ'ĂƐ
ŵŝƐƐŝŽŶƐ;'ůŽďĂůůŝŵĂƚĞŚĂŶŐĞͿ
ϰ͘ϳ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞďƵŝůĚŽƵƚŽĨƚŚĞŝƚǇǁŽƵůĚŐĞŶĞƌĂƚĞĂƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞ ŝŵƉĂĐƚĚƵĞƚŽŐƌĞĞŶŚŽƵƐĞŐĂƐ;','ͿĞŵŝƐƐŝŽŶƐ͘dŚŝƐǁĂƐďĂƐĞĚŽŶďŽƚŚĞŵŝƐƐŝŽŶƐĨƌŽŵĐŽŶƐƚƌƵĐƚŝŽŶĂŶĚ ŽƉĞƌĂƚŝŽŶƐ ŽĨ ĞĂĐŚ ůĂŶĚ ƵƐĞ ƚǇƉĞ͘ ,ŽǁĞǀĞƌ͕ ƚŚĞKŶƚĂƌŝŽ 'W /ZŵĂŝŶƚĂŝŶĞĚ ƚŚĂƚƚŚĞ ŝƚǇ ǁŽƵůĚ ďĞ
ĐŽŵƉůŝĂŶƚǁŝƚŚƚŚĞĞƐƚĂďůŝƐŚĞĚƉŽůŝĐŝĞƐǁŝƚŚŝŶƚŚĞ^ĞŶĂƚĞŝůů;^Ϳϯϳϱ^ƵƐƚĂŝŶĂďůĞŽŵŵƵŶŝƚŝĞƐ^ƚƌĂƚĞŐŝĞƐ ;^^ͿĂŶĚ^'^^͘dŚĞƌĞĨŽƌĞ͕ŝŵƉĂĐƚƐƌĞŐĂƌĚŝŶŐĐůŝŵĂƚĞĐŚĂŶŐĞƉŽůŝĐŝĞƐǁĞƌĞĐŽŶĐůƵĚĞĚƚŽďĞůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚ͘
ϰ͘ϳ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ 'ĞŶĞƌĂƚĞŐƌĞĞŶŚŽƵƐĞŐĂƐĞŵŝƐƐŝŽŶƐ͕ĞŝƚŚĞƌ ĚŝƌĞĐƚůǇ Žƌ ŝŶĚŝƌĞĐƚůǇ͕ƚŚĂƚŵĂǇ ŚĂǀĞĂ ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚ ŽŶ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ͕ ďĂƐĞĚ ŽŶ ĂŶǇ ĂƉƉůŝĐĂďůĞ ƚŚƌĞƐŚŽůĚ ŽĨ ƐŝŐŶŝĨŝĐĂŶĐĞ͘΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϲͲϭ΁
dŚƌĞƐŚŽůĚ;ďͿ ŽŶĨůŝĐƚ ǁŝƚŚĂŶǇĂƉƉůŝĐĂďůĞƉůĂŶ͕ƉŽůŝĐǇŽƌƌĞŐƵůĂƚŝŽŶŽĨ ĂŶĂŐĞŶĐǇĂĚŽƉƚĞĚĨŽƌƚŚĞ ƉƵƌƉŽƐĞŽĨƌĞĚƵĐŝŶŐƚŚĞĞŵŝƐƐŝŽŶƐŽĨŐƌĞĞŶŚŽƵƐĞŐĂƐĞƐ͘΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϲͲϭ΁
,ĞĂůƚŚ ZŝƐŬ ƐƐĞƐƐŵĞŶƚ;,ZͿ ǁĂƐ ĐŽŶĚƵĐƚĞĚ ĨŽƌ ƚŚĞ WƌŽũĞĐƚ ďǇ <ŝŵůĞǇͲ,ŽƌŶ ĂŶĚ ƐƐŽĐŝĂƚĞƐŝŶ ƵŐƵƐƚϮϬϮϭ͘dŚĞƌĞƐƵůƚƐŽĨƚŚĞ,ZĂƌĞƐƵŵŵĂƌŝǌĞĚŚĞƌĞŝŶĂŶĚŝŶĐůƵĚĞĚĂƐƉƉĞŶĚŝǆƚŽƚŚŝƐĚĚĞŶĚƵŵ͘ ĂĐŬŐƌŽƵŶĚ
'ůŽďĂů ĐůŝŵĂƚĞĐŚĂŶŐĞƌĞĨĞƌƐƚŽĐŚĂŶŐĞƐŝŶ ĂǀĞƌĂŐĞĐůŝŵĂƚŝĐĐŽŶĚŝƚŝŽŶƐ ŽŶ ĂƌƚŚĂƐĂǁŚŽůĞ͕ ŝŶĐůƵĚŝŶŐ
ƚĞŵƉĞƌĂƚƵƌĞ͕ǁŝŶĚƉĂƚƚĞƌŶƐĂŶĚƉƌĞĐŝƉŝƚĂƚŝŽŶ͘'ůŽďĂůƚĞŵƉĞƌĂƚƵƌĞƐĂƌĞŵŽĚĞƌĂƚĞĚďǇŶĂƚƵƌĂůůǇŽĐĐƵƌƌŝŶŐ ĂƚŵŽƐƉŚĞƌŝĐŐĂƐĞƐ͕ŝŶĐůƵĚŝŶŐǁĂƚĞƌǀĂƉŽƌ͕ĐĂƌďŽŶĚŝŽǆŝĚĞ;KϮͿ͕ŵĞƚŚĂŶĞ;,ϰͿ͕ĂŶĚŶŝƚƌŽƵƐŽǆŝĚĞ;EϮKͿ͕ ĂƐǁĞůůĂƐŚǇĚƌŽĨůƵŽƌŽĐĂƌďŽŶƐ;,&ƐͿ͕ƉĞƌĨůƵŽƌŽĐĂƌďŽŶƐ;W&ƐͿ͕ĂŶĚƐƵůĨƵƌŚĞǆĂĨůƵŽƌŝĚĞ;^&ϲͿ͘dŚĞƐĞ','Ɛ ĂůůŽǁƐŽůĂƌƌĂĚŝĂƚŝŽŶ;ƐƵŶůŝŐŚƚͿŝŶƚŽƚŚĞ
ĂƌƚŚ͛ƐĂƚŵŽƐƉŚĞƌĞďƵƚƉƌĞǀĞŶƚƌĂĚŝĂƚŝǀĞŚĞĂƚĨƌŽŵĞƐĐĂƉŝŶŐ͕ƚŚƵƐ ǁĂƌŵŝŶŐƚŚĞ
ĂƌƚŚ͛ƐĂƚŵŽƐƉŚĞƌĞ͘','ƐĂƌĞĞŵŝƚƚĞĚ ďǇ ďŽƚŚ ŶĂƚƵƌĂůƉƌŽĐĞƐƐĞƐĂŶĚ ŚƵŵĂŶ ĂĐƚŝǀŝƚŝĞƐ͘ ŽŶĐĞŶƚƌĂƚŝŽŶƐŽĨ','ŚĂǀĞŝŶĐƌĞĂƐĞĚŝŶƚŚĞĂƚŵŽƐƉŚĞƌĞƐŝŶĐĞƚŚĞŝŶĚƵƐƚƌŝĂůƌĞǀŽůƵƚŝŽŶ͘,ƵŵĂŶĂĐƚŝǀŝƚŝĞƐ ƚŚĂƚŐĞŶĞƌĂƚĞ','ĞŵŝƐƐŝŽŶƐŝŶĐůƵĚĞĐŽŵďƵƐƚŝŽŶŽĨĨŽƐƐŝůĨƵĞůƐ;KϮĂŶĚEϮKͿ͖ŶĂƚƵƌĂůŐĂƐŐĞŶĞƌĂƚĞĚĨƌŽŵ ůĂŶĚĨŝůůƐ͕ĨĞƌŵĞŶƚĂƚŝŽŶŽĨŵĂŶƵƌĞĂŶĚĐĂƚƚůĞĨĂƌŵŝŶŐ;,ϰͿ͖ĂŶĚ ŝŶĚƵƐƚƌŝĂůƉƌŽĐĞƐƐĞƐƐƵĐŚĂƐŶǇůŽŶĂŶĚ ŶŝƚƌŝĐĂĐŝĚƉƌŽĚƵĐƚŝŽŶ;EϮKͿ͘
','ƐŚĂǀĞǀĂƌǇŝŶŐŐůŽďĂůǁĂƌŵŝŶŐƉŽƚĞŶƚŝĂů;'tWͿ͘dŚĞ'tWŝƐƚŚĞƉŽƚĞŶƚŝĂůŽĨĂŐĂƐŽƌĂĞƌŽƐŽůƚŽƚƌĂƉ ŚĞĂƚŝŶƚŚĞĂƚŵŽƐƉŚĞƌĞ͖ŝƚŝƐƚŚĞ͞ĐƵŵƵůĂƚŝǀĞƌĂĚŝĂƚŝǀĞĨŽƌĐŝŶŐĞĨĨĞĐƚŽĨĂŐĂƐŽǀĞƌĂƐƉĞĐŝĨŝĞĚƚŝŵĞŚŽƌŝǌŽŶ ƌĞƐƵůƚŝŶŐĨƌŽŵƚŚĞĞŵŝƐƐŝŽŶŽĨĂƵŶŝƚŵĂƐƐŽĨŐĂƐƌĞůĂƚŝǀĞƚŽĂƌĞĨĞƌĞŶĐĞŐĂƐ͘͟dŚĞƌĞĨĞƌĞŶĐĞŐĂƐĨŽƌ'tW ŝƐKϮ͖ƚŚĞƌĞĨŽƌĞ͕KϮŚĂƐĂ'tWĨĂĐƚŽƌŽĨϭ͘dŚĞŽƚŚĞƌŵĂŝŶ','ƐƚŚĂƚŚĂǀĞďĞĞŶĂƚƚƌŝďƵƚĞĚƚŽŚƵŵĂŶ ĂĐƚŝǀŝƚǇŝŶĐůƵĚĞ ,ϰ͕ǁŚŝĐŚ ŚĂƐĂ 'tW ĨĂĐƚŽƌŽĨ Ϯϴ͕ ĂŶĚ EϮK͕ǁŚŝĐŚ ŚĂƐĂ'tW ĨĂĐƚŽƌ ŽĨ Ϯϲϱ͘tŚĞŶ ĂĐĐŽƵŶƚŝŶŐĨŽƌ','Ɛ͕ĂůůƚǇƉĞƐŽĨ','ĞŵŝƐƐŝŽŶƐĂƌĞĞǆƉƌĞƐƐĞĚŝŶƚĞƌŵƐŽĨKϮĞƋƵŝǀĂůĞŶƚƐ;KϮĞͿĂŶĚĂƌĞ ƚǇƉŝĐĂůůǇƋƵĂŶƚŝĨŝĞĚŝŶŵĞƚƌŝĐƚŽŶƐ;DdͿŽƌŵŝůůŝŽŶŵĞƚƌŝĐƚŽŶƐ;DDdͿ͘ ƐƐĞŵďůǇŝůů ;ͿϯϮ͕ƚŚĞĂůŝĨŽƌŶŝĂ'ůŽďĂůtĂƌŵŝŶŐ^ŽůƵƚŝŽŶƐĐƚŽĨ ϮϬϬϲ͕ĞƐƚĂďůŝƐŚĞĚĂ^ƚĂƚĞŐŽĂůŽĨ ƌĞĚƵĐŝŶŐ ',' ĞŵŝƐƐŝŽŶƐ ƚŽ ϭϵϵϬ ůĞǀĞůƐ ďǇ ƚŚĞ ǇĞĂƌ ϮϬϮϬ͕ ǁŚŝĐŚ ǁŽƵůĚ ƌĞƋƵŝƌĞ Ă ƌĞĚƵĐƚŝŽŶ ŽĨ ĂƉƉƌŽǆŝŵĂƚĞůǇϭϳϯDDdŶĞƚKϮĞďĞůŽǁ ͞ďƵƐŝŶĞƐƐĂƐƵƐƵĂů͟ĞŵŝƐƐŝŽŶůĞǀĞůƐ͘^ϵϳ͕ĂĐŽŵƉĂŶŝŽŶďŝůů͕ ĚŝƌĞĐƚĞĚƚŚĞĂůŝĨŽƌŶŝĂEĂƚƵƌĂůZĞƐŽƵƌĐĞƐŐĞŶĐǇ;ZĞƐŽƵƌĐĞƐŐĞŶĐǇͿƚŽĐĞƌƚŝĨǇĂŶĚĂĚŽƉƚŐƵŝĚĞůŝŶĞƐĨŽƌ 162
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϰϴ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ƚŚĞŵŝƚŝŐĂƚŝŽŶŽĨ','ƐŽƌƚŚĞĞĨĨĞĐƚƐŽĨ','ĞŵŝƐƐŝŽŶƐ͘^ϵϳǁĂƐƚŚĞ^ƚĂƚĞ>ĞŐŝƐůĂƚƵƌĞ͛ƐĚŝƌĞĐƚŝǀĞƚŽƚŚĞ ZĞƐŽƵƌĐĞƐŐĞŶĐǇƚŽƐƉĞĐŝĨŝĐĂůůǇĞƐƚĂďůŝƐŚƚŚĂƚ','ĞŵŝƐƐŝŽŶƐĂŶĚƚŚĞŝƌŝŵƉĂĐƚƐĂƌĞĂƉƉƌŽƉƌŝĂƚĞƐƵďũĞĐƚƐ ĨŽƌ
YĂŶĂůǇƐŝƐ͘
ǆĞĐƵƚŝǀĞKƌĚĞƌ;
KͿ ^ͲϯͲϬϱ ǁĂƐĞŶĂĐƚĞĚŝŶ :ƵŶĞϮϬϬϱ ĂŶĚ ĐĂůůƐĨŽƌ ĂŶ ϴϬƉĞƌĐĞŶƚ ƌĞĚƵĐƚŝŽŶďĞůŽǁϭϵϵϬůĞǀĞůƐďǇϮϬϱϬ͘^ϯϮǁĂƐƐŝŐŶĞĚŝŶƚŽůĂǁŝŶϮϬϭϲĂŶĚĞƐƚĂďůŝƐŚĞƐĂŶŝŶƚĞƌŝŵ',' ĞŵŝƐƐŝŽŶƌĞĚƵĐƚŝŽŶŐŽĂůĨŽƌƚŚĞ^ƚĂƚĞƚŽƌĞĚƵĐĞ','ĞŵŝƐƐŝŽŶƐƚŽϰϬƉĞƌĐĞŶƚďĞůŽǁϭϵϵϬůĞǀĞůƐďǇƚŚĞ ǇĞĂƌϮϬϯϬ͘
EŽEĞǁŽƌ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽWůĂŶ'WĨŽƵŶĚƚŚĂƚĂƐŝŐŶŝĨŝĐĂŶƚƵŶĂǀŽŝĚĂďůĞŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ ĨƌŽŵ','ĞŵŝƐƐŝŽŶƐĂƐĂƌĞƐƵůƚŽĨƚŚĞKŶƚĂƌŝŽ'WŝŵƉůĞŵĞŶƚĂƚŝŽŶ͘/ƚǁĂƐĐĂůĐƵůĂƚĞĚƚŚĂƚƚŚƌŽƵŐŚďƵŝůĚŽƵƚ͕ ĐŽŶƐƚƌƵĐƚŝŽŶĞŵŝƐƐŝŽŶƐŝŶ ƚŚĞŝƚǇĐŽƵůĚ ĂǀĞƌĂŐĞĂƉƉƌŽǆŝŵĂƚĞůǇϭϲ͕ϱϯϯDdŽĨ KϮĞƉĞƌǇĞĂƌ͘dŚŝƐǁĂƐ ĨŽƵŶĚ ƚŽďĞĂĐƵŵƵůĂƚŝǀĞůǇĐŽŶƐŝĚĞƌĂďůĞĂŵŽƵŶƚŽĨ','ĞŵŝƐƐŝŽŶƐ͘KƉĞƌĂƚŝŽŶƐĂĐƚŝǀŝƚŝĞƐǁŝƚŚŝŶƚŚĞŝƚǇ ĂƚĨƵůů ďƵŝůĚŽƵƚ ǁŽƵůĚ ďĞ ϭϯ͘ϲDDd͘ůƚŚŽƵŐŚ ŶŽ ŶƵŵĞƌŝĐ ƚŚƌĞƐŚŽůĚ ǁĂƐĂĚŽƉƚĞĚ ĂƚƚŚĞ ƚŝŵĞŽĨ ƚŚĞ KŶƚĂƌŝŽ'W
/Z͕ƚŚĞĞŵŝƐƐŝŽŶƐŐĞŶĞƌĂƚĞĚǁĞƌĞƐƚŝůůĐŽŶƐŝĚĞƌĞĚƐŝŐŶŝĨŝĐĂŶƚ͘ dŚĞWƌŽũĞĐƚƐŝƚĞǁŽƵůĚŵĂŝŶƚĂŝŶŝƚƐĐƵƌƌĞŶƚůĂŶĚƵƐĞĚĞƐŝŐŶĂƚŝŽŶƐǁŚŝĐŚǁĞƌĞĂĚŽƉƚĞĚǁŝƚŚƚŚĞKŶƚĂƌŝŽ 'W
/Z͘dŚĞƌĞĨŽƌĞ͕ƚŚĞůĂŶĚƵƐĞƐǁŽƵůĚƌĞŵĂŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚŽƐĞĂŶĂůǇǌĞĚĨŽƌƚŚĞKŶƚĂƌŝŽ'WĂŶĚƚŚĞ ĞǆŝƐƚŝŶŐĚĞǀĞůŽƉŵĞŶƚƐ ŽŶ ƚŚĞ WƌŽũĞĐƚƐŝƚĞ͘ ^ŝŶĐĞ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŝŶǀŽůǀĞ ƚŚĞ ĚĞŵŽůŝƚŝŽŶ ŽĨ ĞǆŝƐƚŝŶŐ ƐƚƌƵĐƚƵƌĞƐĚĞƐƉŝƚĞƚŚĞĐŽŶƚŝŶƵĂƚŝŽŶ ŽĨĞǆŝƐƚŝŶŐůĂŶĚ ƵƐĞƐ͕ŝƚŝƐĂŶƚŝĐŝƉĂƚĞĚƚŚĂƚĞŵŝƐƐŝŽŶƐǁŽƵůĚƌĞŵĂŝŶ ƐŝŐŶŝĨŝĐĂŶƚ͘,ŽǁĞǀĞƌ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞǀĞůŽƉĞĚŝŶĐŽŶƐŝƐƚĞŶĐǇǁŝƚŚƚŚĞKŶƚĂƌŝŽ'WĂŶĚKŶƚĂƌŝŽD͘ dŚĞ ƉƌŽǀŝƐŝŽŶƐ ǁŝƚŚŝŶ ƚŚĞƐĞĐŽĚĞƐ ǁĞƌĞ ĨŽƵŶĚ ƚŽ ƐƵŝƚĂďůǇ ĐŽŵƉůǇ ǁŝƚŚ ĂƉƉůŝĐĂďůĞ ƉůĂŶƐ͕ ƉŽůŝĐŝĞƐ͕ Žƌ ƌĞŐƵůĂƚŝŽŶƐƌĞŐĂƌĚŝŶŐ','ĞŵŝƐƐŝŽŶƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞƌĞƋƵŝƌĞĚ ƚŽĐŽŵƉůǇ ǁŝƚŚďŽƚŚ &ĞĚĞƌĂůĂŶĚ ^ƚĂƚĞƌĞŐƵůĂƚŝŽŶƐƌĞŐĂƌĚŝŶŐĂŝƌƋƵĂůŝƚǇĂŶĚ','ĞŵŝƐƐŝŽŶƐ͘dŚĞƌĞĨŽƌĞ͕ŝŵƉĂĐƚƐǁŽƵůĚƌĞŵĂŝŶƐŝŐŶŝĨŝĐĂŶƚ͖ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞKŶƚĂƌŝŽ'W
/Z͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐϲͲϭƚŚƌŽƵŐŚϲͲϲĂƌĞŝŶĐůƵĚĞĚ ŝŶƚŚĞKŶƚĂƌŝŽ'W /ZƚŽŵŝƚŝŐĂƚĞŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚ
ǁŝƚŚ ĐůŝŵĂƚĞĐŚĂŶŐĞ ĂŐŐƌĂǀĂƚŝŶŐ','ĞŵŝƐƐŝŽŶƐ ĚƵĞ ƚŽ ŶŽŶĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ĞƐƚĂďůŝƐŚĞĚƉŽůŝĐŝĞƐ ĂŶĚ ƌĞŐƵůĂƚŝŽŶƐ͘ůůŽĨƚŚĞKŶƚĂƌŝŽ'W
/ZŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐ;ϲͲϭƚŚƌŽƵŐŚϲͲϱͿĂƌĞŝŵƉŽƐĞĚƐŽůĞůǇƵƉŽŶƚŚĞ ŝƚǇ͕ĂŶĚĂƌĞƚŚĞƌĞĨŽƌĞŶŽƚĂƉƉůŝĐĂďůĞƚŽƚŚĞWƌŽũĞĐƚ͘ ŽŶĐůƵƐŝŽŶ
dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚ ŝŶ ŶŽ ŶĞǁ Žƌ ŵŽƌĞ ƐĞǀĞƌĞ ŝŵƉĂĐƚ ŽŶ ',' ĞŵŝƐƐŝŽŶƐ͘ ƐŝŐŶŝĨŝĐĂŶƚ ĂŶĚ ƵŶĂǀŽŝĚĂďůĞŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚ
ƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚ ƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ 'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚ ŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ ĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽ ',' ĞŵŝƐƐŝŽŶƐ͘
KǀĞƌĂůů'ƌĞĞŶŚŽƵƐĞ'ĂƐ
ŵŝƐƐŝŽŶƐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽ','ĞŵŝƐƐŝŽŶƐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
163
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϰϵ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϴ ,ĂǌĂƌĚƐĂŶĚ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐ
ϰ͘ϴ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
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WŚĂƐĞ/
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ƉƌŝůϮϬϮϭ͘dŚĞƌĞƐƵůƚƐŽĨƚŚĞWŚĂƐĞ/
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞƉƌŽƉŽƐĞĚĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐǁŽƵůĚŝŶǀŽůǀĞƚŚĞƚƌĂŶƐƉŽƌƚ͕ƵƐĞ͕ ĂŶĚĚŝƐƉŽƐĂůŽĨŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐƐƵĐŚĂƐƉĂŝŶƚƐ͕ƐŽůǀĞŶƚƐ͕ŽŝůƐ͕ŐƌĞĂƐĞ͕ĂŶĚĐĂƵůŬŝŶŐǁŚŝĐŚĂƌĞƚǇƉŝĐĂů ǁŝƚŚĐŽŶƐƚƌƵĐƚŝŽŶƐŝƚĞƐ͕ŝŶĐůƵĚŝŶŐƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨǁĂƌĞŚŽƵƐĞĨĂĐŝůŝƚŝĞƐ͘/ŶĂĚĚŝƚŝŽŶ͕ŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐ ǁŽƵůĚďĞŶĞĞĚĞĚĨŽƌĨƵĞůŝŶŐĂŶĚƐĞƌǀŝĐŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚŽŶƚŚĞƐŝƚĞ͘dŚĞƐĞƚǇƉĞƐŽĨŵĂƚĞƌŝĂůƐ ĂƌĞŶŽƚĂĐƵƚĞůǇŚĂǌĂƌĚŽƵƐ͕ĂŶĚĂůůƐƚŽƌĂŐĞ͕ŚĂŶĚůŝŶŐ͕ƵƐĞ͕ĂŶĚĚŝƐƉŽƐĂůŽĨƚŚĞƐĞŵĂƚĞƌŝĂůƐĂƌĞƌĞŐƵůĂƚĞĚďǇ &ĞĚĞƌĂůĂŶĚ^ƚĂƚĞƌĞƋƵŝƌĞŵĞŶƚƐ͕ǁŚŝĐŚƚŚĞWƌŽũĞĐƚĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐĂƌĞƌĞƋƵŝƌĞĚƚŽƐƚƌŝĐƚůǇĂĚŚĞƌĞ ƚŽ͘dŚĞƐĞƌĞŐƵůĂƚŝŽŶƐŝŶĐůƵĚĞ͗ƚŚĞ&ĞĚĞƌĂůKĐĐƵƉĂƚŝŽŶĂů^ĂĨĞƚǇĂŶĚ,ĞĂůƚŚĐƚĂŶĚ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐ dƌĂŶƐƉŽƌƚĂƚŝŽŶ Đƚ͖ dŝƚůĞ ϴ ŽĨ ƚŚĞ ĂůŝĨŽƌŶŝĂ ŽĚĞ ŽĨ ZĞŐƵůĂƚŝŽŶƐ;ĂůK^,Ϳ͕ ĂŶĚ ƚŚĞ ^ƚĂƚĞ hŶŝĨŝĞĚ ,ĂǌĂƌĚŽƵƐtĂƐƚĞ ĂŶĚ ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐDĂŶĂŐĞŵĞŶƚ ZĞŐƵůĂƚŽƌǇ WƌŽŐƌĂŵ͘ Ɛ Ă ƌĞƐƵůƚ͕ ƌŽƵƚŝŶĞ ƚƌĂŶƐƉŽƌƚĂŶĚƵƐĞŽĨŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐĚƵƌŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘&ƵƌƚŚĞƌŵŽƌĞ͕ ƚŚĞƌŝƐŬƐƌĞůĂƚĞĚƚŽƵƉƐĞƚŽƌ ĂĐĐŝĚĞŶƚĐŽŶĚŝƚŝŽŶƐ ŝŶǀŽůǀŝŶŐ ƚŚĞƌĞůĞĂƐĞŽĨ ŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐŝŶƚŽƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚǁŽƵůĚďĞĂĚĞƋƵĂƚĞůǇĂĚĚƌĞƐƐĞĚƚŚƌŽƵŐŚĐŽŵƉůŝĂŶĐĞǁŝƚŚĞǆŝƐƚŝŶŐ&ĞĚĞƌĂů͕^ƚĂƚĞ͕ĂŶĚůŽĐĂů ƌĞŐƵůĂƚŝŽŶƐ͘
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗WƌŽũĞĐƚƐŝƚĞƌĞĐŽŶŶĂŝƐƐĂŶĐĞĐŽŶĚƵĐƚĞĚĨŽƌƚŚĞWŚĂƐĞ/ƐƚƵĚǇĨŽƵŶĚŶŽ ƉŚǇƐŝĐĂůƐŝŐŶƐŽĨƉƌĞǀŝŽƵƐŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐƉŝůůƐ͘EŽĚŽĐƵŵĞŶƚĞĚŚŝƐƚŽƌŝĐĂůŽĐĐƵƌƌĞŶĐĞƐŽĨŚĂǌĂƌĚŽƵƐ ŵĂƚĞƌŝĂůƐƉŝůůƐǁĞƌĞĨŽƵŶĚ͘EŽh^dƐǁĞƌĞŝĚĞŶƚŝĨŝĞĚŽŶƚŚĞWƌŽũĞĐƚƐŝƚĞǁŚŝůĞĂďŽǀĞŐƌŽƵŶĚƐƚŽƌĂŐĞƚĂŶŬƐ ŝŶĐůƵĚĞĚŵƵůƚŝƉůĞĐŽŵƉƌĞƐƐĞĚŐĂƐƚĂŶŬƐĂŶĚĐǇůŝŶĚĞƌƐ͘dŚĞĐŽŵƉƌĞƐƐĞĚŐĂƐƚĂŶŬƐŝŶĐůƵĚĞĚŽŶĞĞŵƉƚǇϱϱͲ ŐĂůůŽŶĚƌƵŵĂŶĚƚǁŽĞŵƉƚǇĐĂŶŝƐƚĞƌƐŽĨĂĐĞƚŽŶĞ͘,ĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐƚŽƌĂŐĞŽŶͲƐŝƚĞŝŶĐůƵĚĞĚĐůĞĂŶŝŶŐ ƐŽůƵƚŝŽŶƐĨŽƌŐĞŶĞƌĂůŚŽƵƐĞŬĞĞƉŝŶŐ͕ƉĂŝŶƚƐ͕ƐŽůǀĞŶƚƐ͕ĂŶĚŽŝůƐ͘dŚĞƐƚŽƌĂŐĞŽĨƚŚĞƐĞŵĂƚĞƌŝĂůƐǁĂƐĨŽƵŶĚ ƚŽďĞŝŶŐŽŽĚĐŽŶĚŝƚŝŽŶĂŶĚŚĂĚŶŽƚůĞĚƚŽƐƉŝůůƐŽƌĞŶǀŝƌŽŶŵĞŶƚĂůĐŽŶƚĂŵŝŶĂƚŝŽŶ͘ ϭϮ tĂƐƚĞƐƚŽƌĂŐĞŽŶƚŚĞWƌŽũĞĐƚƐŝƚĞŝŶĐůƵĚĞĚ ĂĐŽŶƚĂŝŶŵĞŶƚƉĂůůĞƚŽĨĨŽƵƌ ϱϱͲŐĂůůŽŶ ĚƌƵŵƐŽĨ ŚĂǌĂƌĚŽƵƐ ǁĂƐƚĞŽŝů͘tĂƐƚĞĐŽůůĞĐƚŝŽŶ ŽŶͲƐŝƚĞǁĂƐŽďƐĞƌǀĞĚƚŽŝŶĐůƵĚĞ ƚŚĞƌĞĐǇĐůŝŶŐŽĨŵĂƚĞƌŝĂůƐƐƵĐŚĂƐŵĞƚĂůƐ͕ ĐĂƌĚďŽĂƌĚƐ͕ĂŶĚƉůĂƐƚŝĐƐ͘EŽŽŝůƐƚĂŝŶŝŶŐǁĂƐŽďƐĞƌǀĞĚĂƌŽƵŶĚƚŚĞƐƚŽƌĂŐĞĐŽŶƚĂŝŶĞƌƐŽƌǁĂƐƚĞƌĞĐĞƉƚĂĐůĞƐ͘ tĂƐƚĞƐƚŽƌĂŐĞĐŽŶƚĂŝŶĞƌƐŽŶͲƐŝƚĞ ǁĞƌĞĐŽŶĨŝƌŵĞĚ ƚŽďĞ ŝŶ ŐŽŽĚ ĐŽŶĚŝƚŝŽŶ ǁŝƚŚŶŽ ƐŝŐŶŽĨ ůĞĂŬĂŐĞŽƌ ĚĂŵĂŐĞƚŽƚŚĞƐƵƌƌŽƵŶĚŝŶŐĞŶǀŝƌŽŶŵĞŶƚ͘ϭϯdŚĞWŚĂƐĞ/ĂƐƐĞƐƐŵĞŶƚĨŽƵŶĚƚŚĂƚƚŚĞƉƌĞǀŝŽƵƐƵƐĞƐŽĨƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ ĂƌĞ ƵŶůŝŬĞůǇ ƚŽ ƉŽƐĞ ĂŶ ĞŶǀŝƌŽŶŵĞŶƚĂů ƌŝƐŬ ĨƌŽŵ ĐŽŶƚŝŶƵĞĚ ƵƐĂŐĞ ŽĨ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ͘ ^ƵƌƌŽƵŶĚŝŶŐ ƵƐĞƐŶĞĂƌďǇƚŚĞWƌŽũĞĐƚƐŝƚĞǁĞƌĞĨŽƵŶĚ ƚŽďĞƵŶůŝŬĞůǇ ƚŽƉŽƐĞĞŶǀŝƌŽŶŵĞŶƚĂůƌŝƐŬƐƚŽƚŚĞ WƌŽũĞĐƚƐŝƚĞďĂƐĞĚŽŶǀĂƌŝŽƵƐĐŽŶĚŝƚŝŽŶƐ;ŝ͘Ğ͕͘ĚŝƐƚĂŶĐĞĨƌŽŵdĂƌŐĞƚWƌŽƉĞƌƚǇ͕ŐƌŽƵŶĚǁĂƚĞƌĨůŽǁĚŝƌĞĐƚŝŽŶ͕ ĂŶĚĂďƐĞŶĐĞŽĨƌĞƉŽƌƚĞĚĞŶǀŝƌŽŶŵĞŶƚĂůƌĞŐƵůĂƚŽƌǇǀŝŽůĂƚŝŽŶƐͿ͘ϭϰ ĐĐŽƌĚŝŶŐƚŽƚŚĞKŶƚĂƌŝŽ'W
/Z͕ƚŚĞŝƚǇĐŽŶƚĂŝŶƐĞŝŐŚƚ>ĞĂŬŝŶŐhŶĚĞƌŐƌŽƵŶĚ^ƚŽƌĂŐĞdĂŶŬ;>h^dͿƐŝƚĞƐ ǁŚŝĐŚ ĐŽƵůĚ Ɛƚŝůů ďĞ ůĞĂŬŝŶŐ ŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐ͘,ŽǁĞǀĞƌ͕ ďĂƐĞĚ ŽŶ ƚŚĞ ƵƉĚĂƚĞĚ ŽƌƚĞƐĞƐŝƚĞ ůŝƐƚ ϭϮKƌŝŽŶ
ŶǀŝƌŽŶŵĞŶƚĂů/ŶĐ͘WŚĂƐĞ/
ŶǀŝƌŽŶŵĞŶƚĂů ^ŝƚĞƐƐĞƐƐŵĞŶƚ^ŽƵƚŚŽŶsŝĞǁǀĞŶƵĞĂŶĚ ĂƐƚĞĚĂƌ^ƚƌĞĞƚKŶƚĂƌŝŽ͕ĂůŝĨŽƌŶŝĂ͘ WĂŐĞϰͲϰ͘ ϭϯ/ďŝĚWĂŐĞƐϰͲϰƚŚƌŽƵŐŚϰͲϱ͘ ϭϰ/ďŝĚ͘WĂŐĞƐϱͲϱƚŚƌŽƵŐŚϱͲϲ͘
165
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϱϭ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŵĂŝŶƚĂŝŶĞĚďǇƚŚĞĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨdŽǆŝĐ^ƵďƐƚĂŶĐĞƐŽŶƚƌŽů;d^Ϳ͕ƚŚĞŝƚǇĚŽĞƐŶŽƚĐŽŶƚĂŝŶ ĂŶǇĂĐƚŝǀĞŚĂǌĂƌĚŽƵƐǁĂƐƚĞƐƵďƐƚĂŶĐĞƐŝƚĞƐ͘ϭϱWŽƚĞŶƚŝĂůŚĂǌĂƌĚƐƚŽĐŽŶƐƚƌƵĐƚŝŽŶǁŽƌŬĞƌƐĂŶĚƚŚĞƉƵďůŝĐ ŵĂǇ ŽĐĐƵƌ ĂƐ ĂƌĞƐƵůƚ ŽĨ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐŽŶ ĞǆŝƐƚŝŶŐƐŝƚĞƐƚŚĂƚ ĐŽƵůĚ ďĞ ĐŽŶƚĂŵŝŶĂƚĞĚ͘&ƵƚƵƌĞ ĚĞǀĞůŽƉŵĞŶƚŽĨĂŶǇŽĨƚŚĞƐĞĚŽĐƵŵĞŶƚĞĚŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐƐŝƚĞƐǁŽƵůĚƌĞƋƵŝƌĞƉƌŝŽƌƌĞŵĞĚŝĂƚŝŽŶĂŶĚ ĐůĞĂŶƵƉƵŶĚĞƌƚŚĞƐƵƉĞƌǀŝƐŝŽŶŽĨƚŚĞd^ŝŶŽƌĚĞƌƚŽŵĞĞƚ&ĞĚĞƌĂů͕^ƚĂƚĞ͕ĂŶĚůŽĐĂůƐƚĂŶĚĂƌĚƐ͘ &ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŚĂƐďĞĞŶƉƌĞǀŝŽƵƐůǇĚĞǀĞůŽƉĞĚǁŝƚŚŝŶĚƵƐƚƌŝĂůĂŶĚǁĂƌĞŚŽƵƐŝŶŐƵƐĞƐǁŚŝĐŚ ǁŽƵůĚďĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞƉƌŽƉŽƐĞĚƵƐĞƐ͘ĞĐĂƵƐĞƚŚĞƉƌŽƉŽƐĞĚƵƐĞƐǁŽƵůĚďĞƐŝŵŝůĂƌƚŽƚŚĞĞǆŝƐƚŝŶŐ ƵƐĞƐ͕ŶŽ ŶĞǁ ŝŵƉĂĐƚƐ ĂƌĞ ĂŶƚŝĐŝƉĂƚĞĚ ĂƐ ƉĂƌƚ ŽĨ ƚŚĞ WƌŽũĞĐƚ ĂŶĚ ŶŽ ŶĞǁ ŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞƐĂƌĞ ƌĞĐŽŵŵĞŶĚĞĚ͘/ŵƉĂĐƚƐǁŽƵůĚƌĞŵĂŝŶůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚǁŝƚŚŽƵƚŵŝƚŝŐĂƚŝŽŶĂƉƉůŝĞĚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽƚŚĞŚĂǌĂƌĚŽƵƐǁĂƐƚĞƐŝƚĞ͘ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ
ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁ ĂŶĚͬŽƌŵŽĚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽ ŚĂǌĂƌĚŽƵƐ ŵĂƚĞƌŝĂůƐ͘
dŚƌĞƐŚŽůĚ;ĞͿ &ŽƌĂWƌŽũĞĐƚůŽĐĂƚĞĚǁŝƚŚŝŶĂŶĂŝƌƉŽƌƚůĂŶĚƵƐĞƉůĂŶ͕ŽƌǁŚĞƌĞƐƵĐŚĂƉůĂŶŚĂƐŶŽƚďĞĞŶ ĂĚŽƉƚĞĚ͕ǁŝƚŚŝŶƚǁŽŵŝůĞƐ ŽĨĂƉƵďůŝĐĂŝƌƉŽƌƚŽƌƉƵďůŝĐƵƐĞĂŝƌƉŽƌƚ͕ƌĞƐƵůƚŝŶĂƐĂĨĞƚǇ ŚĂǌĂƌĚŽƌĞǆĐĞƐƐŝǀĞŶŽŝƐĞĨŽƌƉĞŽƉůĞƌĞƐŝĚŝŶŐŽƌǁŽƌŬŝŶŐƚŚĞƉƌŽũĞĐƚĂƌĞĂ͍΀KŶƚĂƌŝŽ'W

/Z/ŵƉĂĐƚϱ͘ϴͲϯ΁
dŚƌĞƐŚŽůĚ;ĨͿ &ŽƌĂ ƉƌŽũĞĐƚŝŶƚŚĞǀŝĐŝŶŝƚǇŽĨĂ ƉƌŝǀĂƚĞĂŝƌƐƚƌŝƉ͕ƌĞƐƵůƚŝŶĂƐĂĨĞƚǇŚĂǌĂƌĚĨŽƌƉĞŽƉůĞ ƌĞƐŝĚŝŶŐŽƌǁŽƌŬŝŶŐŝŶƚŚĞƉƌŽũĞĐƚĂƌĞĂ͘΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϴͲϰ΁΀EŽƚŝŶĐůƵĚĞĚŝŶ
ƚŚĞƵƉĚĂƚĞĚ
YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
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ŶǀŝƌŽ^ƚŽƌ͘
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166
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
WƌŽũĞĐƚǁŽƵůĚƚŚĞƌĞĨŽƌĞŶŽƚĐŽŶĨůŝĐƚǁŝƚŚƚŚĞĞƐƚĂďůŝƐŚĞĚĂŝƌƉŽƌƚůĂŶĚƵƐĞƉůĂŶƐĂŶĚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂ ƐĂĨĞƚǇŚĂǌĂƌĚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽ ŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌ ŝƐƐƵĞƐƌĞůĂƚĞĚƚŽĂŝƌƉŽƌƚůĂŶĚ ƵƐĞƉůĂŶƐ͘
dŚƌĞƐŚŽůĚ;ŐͿ /ŵƉĂŝƌŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨŽƌƉŚǇƐŝĐĂůůǇŝŶƚĞƌĨĞƌĞǁŝƚŚĂŶĂĚŽƉƚĞĚĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶƐĞ ƉůĂŶŽƌĞŵĞƌŐĞŶĐǇĞǀĂĐƵĂƚŝŽŶƉůĂŶ͘΀KŶƚĂƌŝŽ'W
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚƐ͗dŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶWůĂŶ ĂŶĚ ƌĞŐŝŽŶĂůĞŵĞƌŐĞŶĐǇ ĐŽŶŶĞĐƚŝŽŶƐ ǁŽƵůĚ ƉƌŽǀŝĚĞ ƉƌŽƉĞƌ ĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶƐĞĂŶĚ ĞǀĂĐƵĂƚŝŽŶŝŶ ĐĂƐĞƐŽĨ ĞŵĞƌŐĞŶĐǇ͘dŚĞ ŝƚǇ͛Ɛ>ŽĐĂů,ĂǌĂƌĚDŝƚŝŐĂƚŝŽŶWůĂŶ ĞƐƚĂďůŝƐŚĞƐƚŚĂƚŝŶƚĞƌƐƚĂƚĞƐ ǁŽƵůĚƐĞƌǀĞĂƐĞŵĞƌŐĞŶĐǇĞǀĂĐƵĂƚŝŽŶƌŽƵƚĞƐ͘ϭϳdŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚŝŶƚĞƌĨĞƌĞǁŝƚŚŝŶƚĞƌƐƚĂƚĞĐĂƉĂĐŝƚǇ ĂŶĚǁŽƵůĚŶŽƚŝŶĐůƵĚĞŵŽĚŝĨŝĐĂƚŝŽŶƐƚŽŚŝŐŚǁĂǇƐǇƐƚĞŵƐǁŝƚŚŝŶƚŚĞŝƚǇ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ŶŽƚŵŽĚŝĨǇƚŚĞƌŽĂĚǁĂǇŝŶĂǁĂǇƚŚĂƚǁŽƵůĚŝŶŚŝďŝƚƚŚĞƚƌĂǀĞƌƐĂůŽĨĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶĚĞƌƐ͘dǁŽĚƌŝǀĞǁĂǇƐ ǁŽƵůĚďĞĚĞǀĞůŽƉĞĚĂůŽŶŐŽŶsŝĞǁǀĞŶƵĞƚŽĐŽŶŶĞĐƚƚŚĞWƌŽũĞĐƚƐŝƚĞƚŽƚŚĞŝƚǇ͛ƐĐŝƌĐƵůĂƚŝŽŶŶĞƚǁŽƌŬ͘ dŚŝƐ ƉƌŽĐĞƐƐǁŽƵůĚ ŶŽƚ ŝŵƉĞĚĞ ƚŚĞ ŝƚǇ͛ƐĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶƐĞĐĂƉĂĐŝƚǇĂŶĚ ǁŽƵůĚ ĂůůŽǁ ĨŽƌ ŐƌĞĂƚĞƌ ƌĞƐƉŽŶƐĞƚŽƉŽƚĞŶƚŝĂůĞŵĞƌŐĞŶĐŝĞƐǁŝƚŚŝŶƚŚĞWƌŽũĞĐƚƐŝƚĞ͘ ƐƐƵĐŚ͕ĨƵƚƵƌĞĚĞǀĞůŽƉŵĞŶƚǁŝƚŚŝŶWƌŽũĞĐƚďŽƵŶĚĂƌŝĞƐǁŽƵůĚŶŽƚŝŶƚĞƌĨĞƌĞǁŝƚŚĂŶĂĚŽƉƚĞĚĞŵĞƌŐĞŶĐǇ ƌĞƐƉŽŶƐĞƉůĂŶ ĂŶĚͬŽƌ ƚŚĞ ĞŵĞƌŐĞŶĐǇĞǀĂĐƵĂƚŝŽŶ ƉůĂŶ ĂŶĚ ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐǁŽƵůĚ ŽĐĐƵƌ͘ ĐĐŽƌĚŝŶŐůǇ͕ŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĨƌŽŵĂƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĞǀĂůƵĂƚĞĚŝŶ ƚŚĞKŶƚĂƌŝŽ'W
/ZǁŽƵůĚŽĐĐƵƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚ ŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚ
ĐŚĂŶŐĞƚŚĞŝŵƉĂĐƚĨŝŶĚŝŶŐ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽƚŚĞŝŶŚŝďŝƚŝŽŶ ŽĨĞŵĞƌŐĞŶĐǇĂĐĐĞƐƐ͘ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚ
ϭϳŝƚǇŽĨKŶƚĂƌŝŽ͘;ϮϬϭϴͿ͘ŝƚǇŽĨKŶƚĂƌŝŽϮϬϭϴ,ĂǌĂƌĚDŝƚŝŐĂƚŝŽŶWůĂŶ͘WĂŐĞϰͲϭϬϮ͘ZĞƚƌŝĞǀĞĚĨƌŽŵ͗ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽĐĂ͘ŐŽǀͬƐŝƚĞƐͬĚĞĨĂƵůƚͬĨŝůĞƐͬKŶƚĂƌŝŽͲ&ŝůĞƐͬ ŵĞƌŐĞŶĐǇͲDĂŶĂŐĞŵĞŶƚͬZĞĂĚǇKŶƚĂƌŝŽͬĐŝƚǇͺŽĨͺŽŶƚĂƌŝŽͺϮϬϭϴͺŚŵƉ͘ƉĚĨ ;ĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭͿ
167
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ǁŝƚŚ ƚŚĞ ĂƉƉůŝĐĂďůĞ ŐƵŝĚĞůŝŶĞƐ ĂŶĚ ƐƚĂŶĚĂƌĚƐ ǁŝƚŚŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W͕ KŶƚĂƌŝŽ D͕ ĂŶĚ KŶƚĂƌŝŽ ĞǀĞůŽƉŵĞŶƚ ŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ ŶŽ ŶĞǁ ĂŶĚͬŽƌ ŵŽĚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞ ƌĞƋƵŝƌĞĚ ĨŽƌ ŝƐƐƵĞƐ ƌĞůĂƚĞĚƚŽĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶƐĞĐĂƉĂďŝůŝƚŝĞƐ͘
dŚƌĞƐŚŽůĚ;ŚͿ
ǆƉŽƐĞƉĞŽƉůĞŽƌƐƚƌƵĐƚƵƌĞƐ͕ĞŝƚŚĞƌĚŝƌĞĐƚůǇŽƌŝŶĚŝƌĞĐƚůǇ͕ƚŽĂƐŝŐŶŝĨŝĐĂŶƚƌŝƐŬŽĨ ůŽƐƐ͕ ŝŶũƵƌǇ͕ŽƌĚĞĂƚŚŝŶǀŽůǀŝŶŐǁŝůĚůĂŶĚĨŝƌĞƐ͘΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϴͲϲ΁
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/ZǁŽƵůĚŽĐĐƵƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞ ƚŚĂƚǁĂƐŶŽƚ ŬŶŽǁŶ ĂŶĚ ĐŽƵůĚ ŶŽƚ ŚĂǀĞďĞĞŶ ŬŶŽǁŶ ĂƚƚŚĞ ƚŝŵĞƚŚĞ KŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐ
ĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚĐŚĂŶŐĞƚŚĞŝŵƉĂĐƚĨŝŶĚŝŶŐ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐŝŶƌĞůĂƚŝŽŶƚŽǁŝůĚůĂŶĚĨŝƌĞƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚǁĂƐĂůƐŽŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z͘dŚĞWƌŽũĞĐƚ ǁŽƵůĚ ďĞ ĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽǁŝůĚůĂŶĚĨŝƌĞƐ͘ KǀĞƌĂůů,ĂǌĂƌĚƐĂŶĚ,ĂǌĂƌĚŽƵƐDĂƚĞƌŝĂůƐͲZĞůĂƚĞĚ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽŚĂǌĂƌĚƐĂŶĚŚĂǌĂƌĚŽƵƐŵĂƚĞƌŝĂůƐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
ϭϴ>&/Z
&ZW;ϮϬϮϭͿ͘&ŝƌĞ,ĂǌĂƌĚ^ĞǀĞƌŝƚǇŽŶĞsŝĞǁĞƌ͘ŚƚƚƉƐ͗ͬͬĞŐŝƐ͘ĨŝƌĞ͘ĐĂ͘ŐŽǀͬ&,^ͬ;ĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭͿ͘ 168
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϱϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϵ ,ǇĚƌŽůŽŐǇĂŶĚtĂƚĞƌYƵĂůŝƚǇ
ϰ͘ϵ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞ KŶƚĂƌŝŽ 'W
/ZĐŽŶĐůƵĚĞĚ ƚŚĂƚŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞ KŶƚĂƌŝŽ 'W ǁŽƵůĚ ŶŽƚ ƌĞƐƵůƚŝŶ ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚƐƌĞůĂƚŝǀĞ ƚŽ ŚǇĚƌŽůŽŐǇ ĂŶĚ ǁĂƚĞƌƋƵĂůŝƚǇ͕ ĂŶĚ ŶŽ ŵŝƚŝŐĂƚŝŽŶ ŝƐ ŶĞĐĞƐƐĂƌǇƚŽ ƌĞĚƵĐĞ ƉŽƚĞŶƚŝĂů ŝŵƉĂĐƚƐ͘
ϰ͘ϵ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ sŝŽůĂƚĞ ĂŶǇ ǁĂƚĞƌ ƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐ ŽƌǁĂƐƚĞ ĚŝƐĐŚĂƌŐĞƌĞƋƵŝƌĞŵĞŶƚƐŽƌ ŽƚŚĞƌǁŝƐĞ ƐƵďƐƚĂŶƚŝĂůůǇĚĞŐƌĂĚĞƐƵƌĨĂĐĞŽƌŐƌŽƵŶĚǁĂƚĞƌƋƵĂůŝƚǇ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϵͲϰ΁
dŚƌĞƐŚŽůĚ;ŝͿ ŽŶĨůŝĐƚǁŝƚŚŽƌŽďƐƚƌƵĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨĂǁĂƚĞƌƋƵĂůŝƚǇĐŽŶƚƌŽůƉůĂŶŽƌƐƵƐƚĂŝŶĂďůĞ ŐƌŽƵŶĚǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚƉůĂŶ͍΀KŶƚĂƌŝŽ'W
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐĂƐŝƚƉĞƌƚĂŝŶƐ ƚŽ ĂŶǇ ĐŽŶĨůŝĐƚƐ ǁŝƚŚ ǁĂƚĞƌ ƋƵĂůŝƚǇ ĂŶĚ ŐƌŽƵŶĚǁĂƚĞƌ ƉůĂŶƐ͘ ĂƐĞĚ ŽŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z ĨŝŶĚŝŶŐƐ͕
ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨEW
^ĂŶĚ^tWWW DW^ǁŽƵůĚ ĞĨĨĞĐƚŝǀĞůǇŵŝŶŝŵŝǌĞŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚǁĂƚĞƌ ƋƵĂůŝƚǇ͘ Ɛ ƐƵĐŚ͕ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ĐŽŵƉůǇ ǁŝƚŚ &ĞĚĞƌĂů͕ ^ƚĂƚĞ͕ĂŶĚ ůŽĐĂů ƌĞŐƵůĂƚŝŽŶƐ ƌĞŐĂƌĚŝŶŐƚŚĞ ŵĂŝŶƚĞŶĂŶĐĞŽĨ ǁĂƚĞƌƋƵĂůŝƚǇ ƐƚĂŶĚĂƌĚƐ͘dŚŝƐŝŶĐůƵĚĞƐ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ĂŶEW ^ ƉĞƌŵŝƚĂŶĚ ƚŚĞ
ĂƐƐŽĐŝĂƚĞĚ^tWWW͘DWƐŝŶĐůƵĚĞĚŝŶƚŚĞƐĞƉĞƌŵŝƚƐŵĂǇŝŶĐůƵĚĞĂĐƚŝŽŶƐƐƵĐŚĂƐ͗ x ^ŝƚĞ ĚĞƐŝŐŶ ƐƚĂŶĚĂƌĚƐƚŚĂƚŵĂǆŝŵŝǌĞ ƉĞƌŵĞĂďůĞ ĂƌĞĂƐ͕ƵƐĞƉŽƌŽƵƐ ƉĂǀĞŵĞŶƚƐ͕ĂŶĚ ĨŽĐƵƐ ŽŶ ŶĂƚƵƌĂůĚƌĂŝŶĂŐĞƐǇƐƚĞŵƐ͖
x ^ƚƌƵĐƚƵƌĂůƐŽƵƌĐĞĐŽŶƚƌŽůƚŚĂƚŵŝŶŝŵŝǌĞƐƉŽůůƵƚŝŽŶ ŽĨƐƚŽƌŵǁĂƚĞƌďǇƐƵĐŚŵĞĂŶƐĂƐƉĂǀŝŶŐƚƌĂƐŚ ƐƚŽƌĂŐĞĂƌĞĂƐĂŶĚĨƵĞůŝŶŐĂƌĞĂƐǁŝƚŚŝŵƉĞƌǀŝŽƵƐƐƵƌĨĂĐĞƐ͕ĂŶĚŐƌĂĚŝŶŐƐƵĐŚĂƌĞĂƐƚŽďůŽĐŬƌƵŶͲŽĨĨ͖ ĂŶĚ
x dƌĞĂƚŵĞŶƚ ŽŶƚƌŽů ŵĞĂƐƵƌĞƐ ƚŚĂƚ ZĞŵŽǀĞ ƉŽůůƵƚĂŶƚƐ ĨƌŽŵ ƐƚŽƌŵǁĂƚĞƌďǇ ĨŝůƚƌĂƚŝŽŶ͕ ŵĞĚŝĂ ĂďƐŽƌƉƚŝŽŶ͕ŽƌŽƚŚĞƌŵĞĂŶƐ͘
dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽƉŽƚĞŶƚŝĂůǁĂƚĞƌ ĚĞŐƌĂĚĂƚŝŽŶƚŚƌŽƵŐŚWƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚ ƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽǁĂƚĞƌƋƵĂůŝƚǇĚĞŐƌĂĚĂƚŝŽŶ͘ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ
ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽǁĂƚĞƌƋƵĂůŝƚǇ͘ 169
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚƌĞƐŚŽůĚ;ďͿ ^ƵďƐƚĂŶƚŝĂůůǇ ĚĞĐƌĞĂƐĞ ŐƌŽƵŶĚǁĂƚĞƌ ƐƵƉƉůŝĞƐ Žƌ ŝŶƚĞƌĨĞƌĞ ƐƵďƐƚĂŶƚŝĂůůǇ ǁŝƚŚ ŐƌŽƵŶĚǁĂƚĞƌƌĞĐŚĂƌŐĞƐƵĐŚƚŚĂƚƚŚĞƉƌŽũĞĐƚŵĂǇ ŝŵƉĞĚĞ ƐƵƐƚĂŝŶĂďůĞŐƌŽƵŶĚǁĂƚĞƌ ŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞďĂƐŝŶ͍΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϵͲϮ΁
dŚĞŵĂũŽƌŝƚǇŽĨƚŚĞWƌŽũĞĐƚĂƌĞĂŝƐĚĞǀĞůŽƉĞĚĂŶĚƵƌďĂŶŝǌĞĚ͕ƚŚĞƌĞĨŽƌĞ͕ĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞĂƌĞĂǁŽƵůĚ ŶŽƚ ĐĂƵƐĞĂ ƐŝŐŶŝĨŝĐĂŶƚŝŶĐƌĞĂƐĞŝŶ ŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐĂŶĚ ƚŚĞƌĞĨŽƌĞ ǁŽƵůĚ ŶŽƚ ƐƵďƐƚĂŶƚŝĂůůǇŝŵƉĂĐƚ ŐƌŽƵŶĚǁĂƚĞƌƐƵƉƉůŝĞƐŽƌŝŶƚĞƌĨĞƌĞǁŝƚŚŐƌŽƵŶĚǁĂƚĞƌƌĞĐŚĂƌŐĞ͘dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚŝŶƚƌŽĚƵĐĞĂŶĞǁ ŝŶĐŽŶƐŝƐƚĞŶƚ ƵƐĞ ƚŽ ƚŚĞ WƌŽũĞĐƚ ĂƌĞĂ ǁŚŝĐŚ ǁŽƵůĚ ĞǆĐĞĞĚ ƚŚĞ ƵƐĂŐĞƐĞƐƚŝŵĂƚĞĚ ǁŝƚŚ ƚŚĞ ůĂŶĚ ƵƐĞ ĚĞƐŝŐŶĂƚŝŽŶ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ WƌŽũĞĐƚ͘ dŚĞƌĞĨŽƌĞ͕ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŶŽƚ ĚĞƉůĞƚĞ Žƌ ŽƚŚĞƌǁŝƐĞ ƐƵďƐƚĂŶƚŝĂůůǇĚĞŐƌĂĚĞƐƵƌĨĂĐĞŽƌŐƌŽƵŶĚǁĂƚĞƌƋƵĂůŝƚǇ͕ŶŽƌǁŽƵůĚ ŝƚƐƵďƐƚĂŶƚŝĂůůǇĚĞĐƌĞĂƐĞŐƌŽƵŶĚǁĂƚĞƌ ƐƵƉƉůŝĞƐ Žƌ ŝŶƚĞƌĨĞƌĞ ƐƵďƐƚĂŶƚŝĂůůǇ ǁŝƚŚ ŐƌŽƵŶĚǁĂƚĞƌ ƌĞĐŚĂƌŐĞ ƐƵĐŚ ƚŚĂƚ ƚŚĞ WƌŽũĞĐƚ ŵĂǇ ŝŵƉĞĚĞ ƐƵƐƚĂŝŶĂďůĞŐƌŽƵŶĚǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞďĂƐŝŶƐ͘
dŚĞ WƌŽũĞĐƚ ƚŚĞƌĞĨŽƌĞ ǁŽƵůĚ ŶŽƚ ƌĞƐƵůƚ ŝŶ ŶĞǁ Žƌ ŵŽƌĞ ƐĞǀĞƌĞ ŝŵƉĂĐƚƐ ƌĞůĂƚĞĚ ƚŽ ŐƌŽƵŶĚǁĂƚĞƌ͘ ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶ ŬŶŽǁŶ Ăƚ ƚŚĞ ƚŝŵĞ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z ǁĂƐ ĐĞƌƚŝĨŝĞĚ ŝƐ ĂǀĂŝůĂďůĞ ƚŚĂƚ ǁŽƵůĚ ĐŚĂŶŐĞ ƚŚĞ ŝŵƉĂĐƚ ĚĞƚĞƌŵŝŶĂƚŝŽŶ͘ ĐĐŽƌĚŝŶŐůǇ͕ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŶŽƚ ƐŝŐŶŝĨŝĐĂŶƚůǇ ŝŵƉĂĐƚ ůŽĐĂů ŐƌŽƵŶĚǁĂƚĞƌ ƌĞĐŚĂƌŐĞ͘ /ŵƉĂĐƚƐǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽŐƌŽƵŶĚǁĂƚĞƌĚĞŐƌĂĚĂƚŝŽŶ͘ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ
ĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽŐƌŽƵŶĚǁĂƚĞƌ͘ dŚƌĞƐŚŽůĚ;ĐͿ ^ƵďƐƚĂŶƚŝĂůůǇĂůƚĞƌƚŚĞĞǆŝƐƚŝŶŐĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶŽĨƚŚĞƐŝƚĞŽƌĂƌĞĂ͕ŝŶĐůƵĚŝŶŐƚŚƌŽƵŐŚ ƚŚĞĂůƚĞƌĂƚŝŽŶŽĨƚŚĞĐŽƵƌƐĞŽĨĂƐƚƌĞĂŵŽƌƌŝǀĞƌ͕ ŽƌƚŚƌŽƵŐŚƚŚĞĂĚĚŝƚŝŽŶŽĨŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐŝŶĂŵĂŶŶĞƌǁŚŝĐŚǁŽƵůĚƌĞƐƵůƚŝŶĂƐƵďƐƚĂŶƚŝĂůĞƌŽƐŝŽŶŽƌƐŝůƚĂƚŝŽŶŽŶ ͲŽƌŽĨĨͲ ƐŝƚĞ͘΀EŽƚĂŶĂůǇǌĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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dŚƌĞƐŚŽůĚ;ĚͿ ^ƵďƐƚĂŶƚŝĂůůǇĂůƚĞƌƚŚĞĞǆŝƐƚŝŶŐĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶŽĨƚŚĞƐŝƚĞŽƌĂƌĞĂ͕ŝŶĐůƵĚŝŶŐƚŚƌŽƵŐŚ ƚŚĞĂůƚĞƌĂƚŝŽŶŽĨƚŚĞĐŽƵƌƐĞŽĨĂƐƚƌĞĂŵŽƌƌŝǀĞƌ͕ŽƌƚŚƌŽƵŐŚƚŚĞĂĚĚŝƚŝŽŶŽĨŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐŝŶĂŵĂŶŶĞƌǁŚŝĐŚǁŽƵůĚƐƵďƐƚĂŶƚŝĂůůǇŝŶĐƌĞĂƐĞƚŚĞƌĂƚĞŽƌĂŵŽƵŶƚŽĨƐƵƌĨĂĐĞ ƌƵŶŽĨĨ ŝŶ Ă ŵĂŶŶĞƌ ǁŚŝĐŚ ǁŽƵůĚ ƌĞƐƵůƚ ŝŶ ĨůŽŽĚŝŶŐ ŽŶ Ͳ Žƌ ŽĨĨƐŝƚĞ͍ ΀KŶƚĂƌŝŽ 'W /ŵƉĂĐƚϱ͘ϵͲϭ΁
dŚƌĞƐŚŽůĚ;ĞͿ ^ƵďƐƚĂŶƚŝĂůůǇĂůƚĞƌƚŚĞĞǆŝƐƚŝŶŐĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶŽĨƚŚĞƐŝƚĞŽƌĂƌĞĂ͕ŝŶĐůƵĚŝŶŐƚŚƌŽƵŐŚ ƚŚĞĂůƚĞƌĂƚŝŽŶŽĨƚŚĞĐŽƵƌƐĞŽĨĂƐƚƌĞĂŵŽƌƌŝǀĞƌ͕ŽƌƚŚƌŽƵŐŚƚŚĞĂĚĚŝƚŝŽŶŽĨŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐŝŶ Ă ŵĂŶŶĞƌǁŚŝĐŚ ǁŽƵůĚĐƌĞĂƚĞ Žƌ ĐŽŶƚƌŝďƵƚĞƌƵŶŽĨĨǁĂƚĞƌǁŚŝĐŚ ǁŽƵůĚ ĞǆĐĞĞĚƚŚĞĐĂƉĂĐŝƚǇŽĨĞǆŝƐƚŝŶŐŽƌƉůĂŶŶĞĚƐƚŽƌŵǁĂƚĞƌĚƌĂŝŶĂŐĞƐǇƐƚĞŵƐŽƌƉƌŽǀŝĚĞ ƐƵďƐƚĂŶƚŝĂůĂĚĚŝƚŝŽŶĂůƐŽƵƌĐĞƐŽĨƉŽůůƵƚĞĚƌƵŶŽĨĨ͘΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϵͲϭ΁ 170
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dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϱϲ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ƐƐƚĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͕ƐƚŽƌŵǁĂƚĞƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞǁŽƵůĚďĞ
ĚĞƐŝŐŶĞĚ ƚŽ ĂĐĐŽŵŵŽĚĂƚĞĨůŽǁƐ ĂĚĚĞĚ ƚŚƌŽƵŐŚ ƚŚĞ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞKŶƚĂƌŝŽ 'W͘ ƐƐƚĂƚĞĚŝŶ ^ĞĐƚŝŽŶϰ͘ϲ͕'ĞŽůŽŐǇĂŶĚ^ŽŝůƐ͕ĨƵƚƵƌĞƉƌŽũĞĐƚƐŝŶĐůƵĚŝŶŐƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽĂƚƚĂŝŶĂŶEW ^
ƉĞƌŵŝƚĂŶĚĂƐƐŽĐŝĂƚĞĚ^tWWW͘dŚĞƐĞƚǁŽƉƌŽĐĞƐƐĞƐĂŶĚƚŚĞĂƐƐŽĐŝĂƚĞĚDWƐǁŽƵůĚĂĚĞƋƵĂƚĞůǇŵŝŶŝŵŝǌĞ ƉŽƚĞŶƚŝĂůŽĨĨͲƐŝƚĞ ǁĂƚĞƌƋƵĂůŝƚǇŝŵƉĂĐƚƐ͘ŽŶƐƚƌƵĐƚŝŽŶͲƌĞůĂƚĞĚDWƐǁŽƵůĚ ďĞ ŝĚĞŶƚŝĨŝĞĚ ďĂƐĞĚŽŶ ƐŝƚĞͲ ƐƉĞĐŝĨŝĐ ĐŽŶĚŝƚŝŽŶƐ ĚƵƌŝŶŐ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ Ă ^tWWW ĨŽƌ ƚŚĞ ĨƵƚƵƌĞ ĚĞǀĞůŽƉŵĞŶƚ ƉƌŽũĞĐƚ͘ >ŽŶŐ ƚĞƌŵ ŽƉĞƌĂƚŝŽŶĂůDWƐǁŽƵůĚďĞŝĚĞŶƚŝĨŝĞĚƚŚƌŽƵŐŚŝƐƐƵĂŶĐĞŽĨĂŶEW ^ƉĞƌŵŝƚƚŚƌŽƵŐŚƚŚĞZĞŐŝŽŶĂůtĂƚĞƌ
YƵĂůŝƚǇŽŶƚƌŽůŽĂƌĚ;ZtYͿĂŶĚǁŽƵůĚŝŶĐůƵĚĞǁĂƚĞƌƋƵĂůŝƚǇĨĞĂƚƵƌĞƐƚŽĞŶƐƵƌĞƚŚĂƚƌƵŶŽĨĨŝƐƚƌĞĂƚĞĚ ƉƌŝŽƌƚŽĚŝƐĐŚĂƌŐĞŝŶƚŽƚŚĞƐƚŽƌŵĚƌĂŝŶŽƌƌĞŐŝŽŶĂůĐŽŶǀĞǇĂŶĐĞĨĂĐŝůŝƚŝĞƐ͘&ƵƌƚŚĞƌŵŽƌĞ͕ďĂƐĞĚŽŶƚŚĞƐƚĂƚĞ ŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĂŶĚĐŽŶƐŝƐƚĞŶĐǇǁŝƚŚĞǆŝƐƚŝŶŐƵƐĞƐ͕ŝƚŝƐĂŶƚŝĐŝƉĂƚĞĚƚŚĂƚƚŚĞWƌŽũĞĐƚǁŽƵůĚ ŶŽƚǀŝŽůĂƚĞ ĂŶǇǁĂƚĞƌƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐŽƌǁĂƐƚĞĚŝƐĐŚĂƌŐĞƌĞƋƵŝƌĞŵĞŶƚƐ͘ dŚĞWƌŽũĞĐƚǁŽƵůĚĂůƐŽƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĨƌŽŵ ĞƌŽƐŝŽŶŽƌ ƐŝůƚĂƚŝŽŶ͘ĂƐĞĚŽŶƚŚĞ KŶƚĂƌŝŽ'W
/ZĨŝŶĚŝŶŐƐ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚůŽĐĂƚĞĚŝŶĂŶĂƌĞĂƉƌŽŶĞƚŽƚŚĞƉƌĞǀŝŽƵƐůǇŵĞŶƚŝŽŶĞĚŶĂƚƵƌĂů ŽƌŵĂŶŵĂĚĞĚŝƐĂƐƚĞƌƐ͘dŚƵƐ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƐƵďƐƚĂŶƚŝĂůůǇĂůƚĞƌƚŚĞĞǆŝƐƚŝŶŐĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶŽĨƚŚĞ ƐŝƚĞŽƌĂƌĞĂ͕ŝŶĐůƵĚŝŶŐƚŚƌŽƵŐŚƚŚĞĂůƚĞƌĂƚŝŽŶŽĨƚŚĞĐŽƵƌƐĞŽĨĂƐƚƌĞĂŵŽƌƌŝǀĞƌŽƌƚŚƌŽƵŐŚƚŚĞĂĚĚŝƚŝŽŶŽĨ ŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐ͕ŝŶ Ă ŵĂŶŶĞƌ ǁŚŝĐŚ ǁŽƵůĚ ĐƌĞĂƚĞ ƚŚĞ ĂďŽǀĞͲŵĞŶƚŝŽŶĞĚ ĚŝƐĂƐƚĞƌƐ͘ ůĞƐƐ ƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŝƐĂŶƚŝĐŝƉĂƚĞĚĨƌŽŵWƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶ͘EŽŶĞǁŝŵƉĂĐƚŽƌŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇ ŽĨĂŶŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚǁŽƵůĚƚŚĞƌĞĨŽƌĞŽĐĐƵƌǁŝƚŚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚ͘ dŚƌĞƐŚŽůĚ;ĨͿ ^ƵďƐƚĂŶƚŝĂůůǇĂůƚĞƌƚŚĞĞǆŝƐƚŝŶŐĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶŽĨƚŚĞƐŝƚĞŽƌĂƌĞĂ͕ŝŶĐůƵĚŝŶŐƚŚƌŽƵŐŚ ƚŚĞĂůƚĞƌĂƚŝŽŶŽĨƚŚĞĐŽƵƌƐĞŽĨĂƐƚƌĞĂŵŽƌƌŝǀĞƌ͕ŽƌƚŚƌŽƵŐŚƚŚĞĂĚĚŝƚŝŽŶŽ ĨŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐŝŶĂŵĂŶŶĞƌǁŚŝĐŚǁŽƵůĚŝŶĨůŽŽĚŚĂǌĂƌĚ͕ƚƐƵŶĂŵŝ͕ŽƌƐĞŝĐŚĞǌŽŶĞƐ͕ƌŝƐŬƌĞůĞĂƐĞ ŽĨƉŽůůƵƚĂŶƚƐĚƵĞƚŽƉƌŽũĞĐƚŝŶƵŶĚĂƚŝŽŶ͍΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϵͲϯ͕ϱ͘ϵͲϭϬ΁ dŚƌĞƐŚŽůĚ;ŐͿ ^ƵďƐƚĂŶƚŝĂůůǇĂůƚĞƌƚŚĞĞǆŝƐƚŝŶŐĚƌĂŝŶĂŐĞƉĂƚƚĞƌŶŽĨƚŚĞƐŝƚĞŽƌĂƌĞĂ͕ŝŶĐůƵĚŝŶŐƚŚƌŽƵŐŚ ƚŚĞĂůƚĞƌĂƚŝŽŶŽĨƚŚĞĐŽƵƌƐĞŽĨĂƐƚƌĞĂŵŽƌƌŝǀĞƌ͕ŽƌƚŚƌŽƵŐŚƚŚĞĂĚĚŝƚŝŽŶŽĨŝŵƉĞƌǀŝŽƵƐ ƐƵƌĨĂĐĞƐ ŝŶ Ă ŵĂŶŶĞƌ ǁŚŝĐŚ ǁŽƵůĚ ŝŵƉĞĚĞ Žƌ ƌĞĚŝƌĞĐƚ ĨůŽŽĚ ĨůŽǁƐ͍ ΀KŶƚĂƌŝŽ'W /ŵƉĂĐƚϱ͘ϵͲϯ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ĐĐŽƌĚŝŶŐƚŽKŶƚĂƌŝŽ'W
/Z&ŝŐƵƌĞϱ͘ϵͲϮ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚůŽĐĂƚĞĚ
ǁŝƚŚŝŶ Ă&ĞĚĞƌĂů
ŵĞƌŐĞŶĐǇDĂŶĂŐĞŵĞŶƚŐĞŶĐǇ;&
DͿ ĚĞƐŝŐŶĂƚĞĚϭϬϬͲǇĞĂƌĨůŽŽĚƉůĂŝŶ͘ &ƵƌƚŚĞƌ͕ƚŚĞ
ĐƵƌƌĞŶƚ&
D&ůŽŽĚ /ŶƐƵƌĂŶĐĞZĂƚĞDĂƉ;&/ZDͿĨŽƌƚŚĞWƌŽũĞĐƚĂƌĞĂƐŚŽǁƐƚŚĂƚŝƚůŝĞƐŽƵƚƐŝĚĞŽĨŬŶŽǁŶ ĨůŽŽĚ ŚĂǌĂƌĚǌŽŶĞƐ͘dŚĞWƌŽũĞĐƚŝŶǀŽůǀĞƐ ƚŚĞĚĞǀĞůŽƉŵĞŶƚ ŽĨ ŝŶĚƵƐƚƌŝĂůǁĂƌĞŚŽƵƐŝŶŐĨĂĐŝůŝƚǇŝŶ ĂŶĂƌĞĂ ƉƌĞǀŝŽƵƐůǇŽĐĐƵƉŝĞĚďǇƐŝŵŝůĂƌƵƐĞƐ͘
dŚĞWƌŽũĞĐƚǁŽƵůĚ ƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐĂƐŝƚƉĞƌƚĂŝŶƐƚŽĨůŽŽĚ ŚĂǌĂƌĚ͕ƚƐƵŶĂŵŝ͕Žƌ ƐĞŝĐŚĞǌŽŶĞƐ͕ŽƌƌŝƐŬƚŚĞƌĞůĞĂƐĞŽĨ ƉŽůůƵƚĂŶƚƐĚƵĞ ƚŽWƌŽũĞĐƚŝŶƵŶĚĂƚŝŽŶ͘ ĂƐĞĚŽŶ ƚŚĞKŶƚĂƌŝŽ'W /Z
ĨŝŶĚŝŶŐƐ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚůŽĐĂƚĞĚŝŶĂŶĂƌĞĂƉƌŽŶĞƚŽƚŚĞƉƌĞǀŝŽƵƐůǇŵĞŶƚŝŽŶĞĚŶĂƚƵƌĂůŽƌŵĂŶŵĂĚĞ ĚŝƐĂƐƚĞƌƐ͘dŚƵƐ͕ ŶŽ ƉŽůůƵƚĂŶƚƐ ǁŽƵůĚ ďĞ ƌĞůĞĂƐĞĚ ĚƵĞ ƚŽ ŝŶƵŶĚĂƚŝŽŶ ďǇ ƐĞŝĐŚĞ͕ƚƐƵŶĂŵŝ͕ ŽƌŵƵĚĨůŽǁ͘ dŚĞƌĞĨŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚŝŶǀŽůǀĞƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƌĞƐŝĚĞŶƚŝĂůƐƚƌƵĐƚƵƌĞƐŽƌŝŵƉĞĚĞĨůŽŽĚĨůŽǁƐ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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171
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽĨůŽŽĚƌŝƐŬƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ǁĂƐŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
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YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ĐĐŽƌĚŝŶŐƚŽ ƚŚĞKŶƚĂƌŝŽ'W /Z&ŝŐƵƌĞϱ͘ϵͲϮ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐůŽĐĂƚĞĚ
ǁŝƚŚŝŶƚŚĞ^ĂŶŶƚŽŶŝŽƌĞĞŬĂŵ&ĂŝůƵƌĞ/ŶƵŶĚĂƚŝŽŶĂƌĞĂ͘dŚŝƐǁŽƵůĚůĞĂǀĞƚŚĞWƌŽũĞĐƚƐŝƚĞƉŽƚĞŶƚŝĂůůǇ ĨůŽŽĚĞĚƚŽĂĚĞƉƚŚŽĨƵƉƚŽĨŽƵƌĨĞĞƚ͘,ŽǁĞǀĞƌ͕ŝƚŝƐƐƚĂƚĞĚƚŚĂƚĚĂŵĨĂŝůƵƌĞĨŽƌƚŚĞ^ĂŶŶƚŽŶŝŽƌĞĞŬĂŵ ŝƐǀĞƌǇ ůŽǁ ĚƵĞ ƚŽ ƚŚĞŝƚǇ͛ƐůŽǁ ƉŽƚĞŶƚŝĂů ĨŽƌ ƐŝŐŶŝĨŝĐĂŶƚŐƌŽƵŶĚ ƐŚĂŬŝŶŐĞĂƌƚŚƋƵĂŬĞƐ͘ ϭϵ&ƵƌƚŚĞƌŵŽƌĞ͕ ĂĐĐŽƌĚŝŶŐƚŽKŶƚĂƌŝŽ'W
/Z&ŝŐƵƌĞϱ͘ϵͲϮ͕ŝŶĂĐĂƐĞŽĨĚĂŵĨĂŝůƵƌĞ͕ĚĂŵŝŶƵŶĚĂƚŝŽŶǁŽƵůĚ ĂƌƌŝǀĞĂƚƚŚĞ WƌŽũĞĐƚƐŝƚĞŝŶĂƉƉƌŽǆŝŵĂƚĞůǇƚŚƌĞĞƚŽĨŽƵƌŚŽƵƌƐ͕ǁŚŝĐŚǁŽƵůĚďĞĞŶŽƵŐŚƚŽƚŝŵĞƚŽĞǀĂĐƵĂƚĞƉĞƌƐŽŶŶĞů ĂŶĚŵŝŶŝŵŝǌĞŚƵŵĂŶŝŶũƵƌǇĂŶĚŚĂǌĂƌĚƐ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĚƵĞƚŽĨůŽŽĚƌŝƐŬƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ǁĂƐŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z͘dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ĚĞƐŝŐŶĞĚ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚ ƚŚĞ ĂƉƉůŝĐĂďůĞ ŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ ŶŽŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽĨůŽŽĚŝŶŐ͘ KǀĞƌĂůů,ǇĚƌŽůŽŐǇĂŶĚtĂƚĞƌYƵĂůŝƚǇͲZĞůĂƚĞĚ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽŚǇĚƌŽůŽŐǇĂŶĚǁĂƚĞƌƋƵĂůŝƚǇ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘

ϭϵŝƚǇŽĨKŶƚĂƌŝŽ͘;ϮϬϬϵͿ͘dŚĞKŶƚĂƌŝŽWůĂŶƌĂĨƚ
/Z͘ϱ͘ϵ,ǇĚƌŽůŽŐǇ͘WĂŐĞϱ͘ϵͲϮϯ͘ŽƐƚĂDĞƐĂ͕͗dŚĞWůĂŶŶŝŶŐĞŶƚĞƌ͘ 172
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϱϴ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϬ >ĂŶĚhƐĞĂŶĚWůĂŶŶŝŶŐ
ϰ͘ϭϬ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
ĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞKŶƚĂƌŝŽ 'W
/Z͕ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞKŶƚĂƌŝŽ'W ǁŽƵůĚ ŶŽƚ ĚŝǀŝĚĞ ĂŶĞƐƚĂďůŝƐŚĞĚ ĐŽŵŵƵŶŝƚǇ͘dŚĞKŶƚĂƌŝŽ'WŝŶĐůƵĚĞƐĂƌĂŶŐĞŽĨŝŶĚƵƐƚƌŝĂů͕ĐŽŵŵĞƌĐŝĂů͕ƉƵďůŝĐ͕ĂŶĚƌĞƐŝĚĞŶƚŝĂůƵƐĞƐ͘dŚĞ KŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐ ƌĞůĂƚŝǀĞƚŽůĂŶĚƵƐĞĂŶĚƉůĂŶŶŝŶŐ͕ĂŶĚŶŽŵŝƚŝŐĂƚŝŽŶŝƐŶĞĐĞƐƐĂƌǇƚŽƌĞĚƵĐĞƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐ͘ ϰ͘ϭϬ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ WŚǇƐŝĐĂůůǇĚŝǀŝĚĞĂŶĞƐƚĂďůŝƐŚĞĚĐŽŵŵƵŶŝƚǇ͍΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϭϬͲϭ΁ EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚƐŝƚĞŝƐůĂƌŐĞůǇĚĞǀĞůŽƉĞĚǁŝƚŚ͕ĂŶĚƐƵƌƌŽƵŶĚĞĚďǇ͕ŝŶĚƵƐƚƌŝĂů ǁĂƌĞŚŽƵƐŝŶŐƵƐĞƐ;ƐĞĞ^ĞĐƚŝŽŶϮ͘ϭĨŽƌŵŽƌĞĚĞƚĂŝůͿ͘ŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞKŶƚĂƌŝŽ'W /Z͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ
ŶŽƚĚŝǀŝĚĞĂŶĞƐƚĂďůŝƐŚĞĚĐŽŵŵƵŶŝƚǇ͘dŚĞWƌŽũĞĐƚƉƌŽƉŽƐĞƐƚŽŝŵƉůĞŵĞŶƚĂǁĂƌĞŚŽƵƐĞͬůŽŐŝƐƚŝĐƐĨĂĐŝůŝƚǇ͘ dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ƐŝŵŝůĂƌ ĂŶĚ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚ ƐƵƌƌŽƵŶĚŝŶŐ ƵƐĞƐ͘ ǆŝƐƚŝŶŐ ĚĞǀĞůŽƉŵĞŶƚ ǁŝƚŚŝŶ ƚŚĞ
WƌŽũĞĐƚĂƌĞĂŝƐĂůƌĞĂĚǇĚŝǀŝĚĞĚďǇƚŚĞĞǆŝƐƚŝŶŐůŽĐĂůƌŽĂĚǁĂǇŶĞƚǁŽƌŬ͕ŝŶĐůƵĚŝŶŐŽŶsŝĞǁǀĞŶƵĞ͕ĂŶĚƚŚĞ WƌŽũĞĐƚŝƐŶŽƚĂŶƚŝĐŝƉĂƚĞĚƚŽĐƌĞĂƚĞĂĚĚŝƚŝŽŶĂůƉŚǇƐŝĐĂůďĂƌƌŝĞƌƐďĞƚǁĞĞŶƚŚĞƐĞƵƐĞƐ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞƌĞĂƌĞ ŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞůĂŶĚƵƐĞŝŵƉĂĐƚƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐ ŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐ ĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁ ĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽůĂŶĚƵƐĞ͘ dŚƌĞƐŚŽůĚ;ďͿ ĂƵƐĞĂ ƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚ ĚƵĞƚŽĂ ĐŽŶĨůŝĐƚ ǁŝƚŚ ĂŶǇůĂŶĚƵƐĞ ƉůĂŶ͕ ƉŽůŝĐǇ͕ Žƌ ƌĞŐƵůĂƚŝŽŶ ĂĚŽƉƚĞĚ ĨŽƌ ƚŚĞ ƉƵƌƉŽƐĞ ŽĨ ĂǀŽŝĚŝŶŐ Žƌ ŵŝƚŝŐĂƚŝŶŐ ĂŶ ĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚ͍ ΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϭϬͲϮ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗EŽƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽůĂŶĚƵƐĞĂŶĚƉůĂŶŶŝŶŐĂƌĞ ŝĚĞŶƚŝĨŝĞĚ ŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚ ŶŽƚƌĞƋƵŝƌĞĂŶĂŵĞŶĚŵĞŶƚƚŽƚŚĞKŶƚĂƌŝŽWůĂŶ /Z
>ĂŶĚhƐĞ
ůĞŵĞŶƚ͕ďĞĐĂƵƐĞǁĂƌĞŚŽƵƐŝŶŐƵƐĞƐĂƌĞƉĞƌŵŝƚƚĞĚƵƐĞƐďǇƌŝŐŚƚǁŝƚŚŝŶŝŶĚƵƐƚƌŝĂůǌŽŶĞƐ͘ƐƐƵĐŚ͕ ƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚĂƉƉůŝĐĂďůĞůĂŶĚƵƐĞƉůĂŶƐ͕ŝŶĐůƵĚŝŶŐƚŚĞKŶƚĂƌŝŽ'W͘dŚĞWƌŽũĞĐƚĚŽĞƐ͕ ŚŽǁĞǀĞƌ͕ ƉƌŽƉŽƐĞ ƚŚĞ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ Ă ŽŶĞ ŚĂŶŐĞ ĨŽƌ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ͛Ɛ ƐŽƵƚŚĞƌŶ ƉĂƌĐĞů ;WEϭϬϱϬͲϰϰϭͲϬϱͿ ĨƌŽŵ ǌŽŶŝŶŐ ĚĞƐŝŐŶĂƚŝŽŶ >ŝŐŚƚ /ŶĚƵƐƚƌŝĂů ;/>Ϳ ƚŽ 'ĞŶĞƌĂů /ŶĚƵƐƚƌŝĂů ;/'Ϳ͘ dŚĞ ŽŶĞ ŚĂŶŐĞŝƐŝŶƚĞŶĚĞĚƚŽĐƌĞĂƚĞĂĐŽŶƐŝƐƚĞŶƚǌŽŶŝŶŐĚĞƐŝŐŶĂƚŝŽŶƚŚƌŽƵŐŚŽƵƚƚŚĞWƌŽũĞĐƚƐŝƚĞ͘dŚŝƐĐŚĂŶŐĞ͕ ŚŽǁĞǀĞƌ͕ ŝƐ ŶŽƚ ĞǆƉĞĐƚĞĚ ƚŽ ƐƵďƐƚĂŶƚŝĂůůǇ ĂĨĨĞĐƚ ĞƐƚĂďůŝƐŚĞĚ ůĂŶĚ ƵƐĞ ƉŽůŝĐŝĞƐ ƐŝŶĐĞ ďŽƚŚ ǌŽŶŝŶŐ ĚĞƐŝŐŶĂƚŝŽŶƐĂůůŽǁĨŽƌƚŚĞWƌŽũĞĐƚ͛ƐƉƌŽƉŽƐĞĚƵƐĞƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚ ƚŚĞƌĞĨŽƌĞŶŽƚ ĐĂƵƐĞĂƐŝŐŶŝĨŝĐĂŶƚ 173
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϱϵ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚĚƵĞ ƚŽ ĂĐŽŶĨůŝĐƚ ǁŝƚŚ ĂŶǇ ůĂŶĚ ƵƐĞ ƉůĂŶ͕ ƉŽůŝĐǇ͕ Žƌ ƌĞŐƵůĂƚŝŽŶĂĚŽƉƚĞĚ ĨŽƌ ƚŚĞ ƉƵƌƉŽƐĞŽĨĂǀŽŝĚŝŶŐŽƌŵŝƚŝŐĂƚŝŶŐĂŶĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞůĂŶĚƵƐĞŝŵƉĂĐƚƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐ ŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐ ĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁ ĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽůĂŶĚƵƐĞ͘ dŚƌĞƐŚŽůĚ;ĐͿ ŽŶĨůŝĐƚ ǁŝƚŚ ĂŶǇ ĂƉƉůŝĐĂďůĞ ŚĂďŝƚĂƚ ĐŽŶƐĞƌǀĂƚŝŽŶ ƉůĂŶ Žƌ ŶĂƚƵƌĂů ĐŽŵŵƵŶŝƚǇ ĐŽŶƐĞƌǀĂƚŝŽŶ ƉůĂŶ͘΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϭϬͲϯ΁΀EŽƚ ŝŶĐůƵĚĞĚŝŶ ƚŚĞ ϮϬϮϭ
Y
ƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
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DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽ ŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞůĂŶĚƵƐĞŝŵƉĂĐƚƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁĂƐ ŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĚĞƐŝŐŶĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐ ĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁ ĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽůĂŶĚƵƐĞ͘ KǀĞƌĂůů>ĂŶĚhƐĞĂŶĚWůĂŶŶŝŶŐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽůĂŶĚƵƐĞĂŶĚƉůĂŶŶŝŶŐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
174
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϭ DŝŶĞƌĂůZĞƐŽƵƌĐĞƐ
ϰ͘ϭϭ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
ĐĐŽƌĚŝŶŐƚŽƚŚĞKŶƚĂƌŝŽ'W
/Z͕ƚǁŽĂƌĞĂƐŝŶƚŚĞŝƚǇĂƌĞĐůĂƐƐŝĨŝĞĚĂƐDŝŶĞƌĂůZĞƐŽƵƌĐĞŽŶĞ;DZͿͲϮ͗ ŽŶĞŝƐŝŶƚŚĞŶŽƌƚŚǁĞƐƚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞŝƚǇĂŶĚƚŚĞƐĞĐŽŶĚŝƐĂůŽŶŐƚŚĞĞĂƐƚĞƌŶŝƚǇďŽƵŶĚĂƌǇ͘dŚĞƐĞ ƚǁŽ ĂƌĞĂƐ ƚŽƚĂů ĂƉƉƌŽǆŝŵĂƚĞůǇ ϲ͕ϭϯϮ ĂĐƌĞƐ͕ Žƌ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϭϵ ƉĞƌĐĞŶƚ ŽĨ ƚŚĞ ŝƚǇ͛Ɛ ĂƌĞĂ͖ ƐĞĞ &ŝŐƵƌĞϱ͘ϭϭͲϭ͕DŝŶĞƌĂůZĞƐŽƵƌĐĞŽŶĞƐŽĨƚŚĞKŶƚĂƌŝŽ'W /Z͘dŚĞƌĞŵĂŝŶĚĞƌŽĨƚŚĞŝƚǇ͕ĂƉƉƌŽǆŝŵĂƚĞůǇ
ϴϭƉĞƌĐĞŶƚŽĨŝƚƐĂƌĞĂ͕ŝƐDZͲϯ͕ǁŚĞƌĞƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨŵŝŶĞƌĂůĚĞƉŽƐŝƚƐŝƐƵŶŬŶŽǁŶ͘DŝŶĞƌĂůƌĞƐŽƵƌĐĞƐ ŝŶ ƚŚĞ ŝƚǇ ĂƌĞ ůŝŵŝƚĞĚ ƚŽ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂŐŐƌĞŐĂƚĞƐƐƵĐŚĂƐ ƐĂŶĚ ĂŶĚ ŐƌĂǀĞů͘dŚĞƌĞ ĂƌĞ ĐƵƌƌĞŶƚůǇ ŶŽ ƉĞƌŵŝƚƚĞĚŵŝŶŝŶŐŽƉĞƌĂƚŝŽŶƐŝŶƚŚĞŝƚǇ͘
dŚĞKŶƚĂƌŝŽ'W
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ϰ͘ϭϭ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ ZĞƐƵůƚŝŶƚŚĞůŽƐƐŽĨĂǀĂŝůĂďŝůŝƚǇŽĨĂŬŶŽǁŶŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƚŚĂƚǁŽƵůĚďĞŽĨǀĂůƵĞƚŽ ƚŚĞƌĞŐŝŽŶĂŶĚƚŚĞƌĞƐŝĚĞŶƚƐŽĨƚŚĞƐƚĂƚĞ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϭϭͲϭ΁
dŚƌĞƐŚŽůĚ;ďͿ ZĞƐƵůƚŝŶƚŚĞůŽƐƐŽĨĂǀĂŝůĂďŝůŝƚǇŽĨĂůŽĐĂůůǇŝŵƉŽƌƚĂŶƚŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƌĞĐŽǀĞƌǇƐŝƚĞ ĚĞůŝŶĞĂƚĞĚŽŶĂůŽĐĂůŐĞŶĞƌĂůƉůĂŶ͕ƐƉĞĐŝĨŝĐƉůĂŶ͕ŽƌŽƚŚĞƌůĂŶĚƵƐĞƉůĂŶ͍΀KŶƚĂƌŝŽ'W /Z
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗ŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞKŶƚĂƌŝŽ'W /ZĐŽŶĐůƵƐŝŽŶƐ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚ
ůŽĐĂƚĞĚŝŶ ĂŶ ĂƌĞĂŬŶŽǁŶ ƚŽ ĐŽŶƚĂŝŶŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐƚŚĂƚǁŽƵůĚ ďĞ ŽĨ ǀĂůƵĞ ƚŽƚŚĞ ƌĞŐŝŽŶĂŶĚ ƚŚĞ ƌĞƐŝĚĞŶƚƐŽĨ ƚŚĞ ^ƚĂƚĞ͘ϮϬĚĚŝƚŝŽŶĂůůǇ͕ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŶŽƚ ƌĞƐƵůƚ ŝŶ ƚŚĞ ůŽƐƐ ŽĨ ĂǀĂŝůĂďŝůŝƚǇ ŽĨ Ă ůŽĐĂůůǇ ŝŵƉŽƌƚĂŶƚŵŝŶĞƌĂů ƌĞƐŽƵƌĐĞƐƌĞĐŽǀĞƌǇƐŝƚĞĚĞůŝŶĞĂƚĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W Žƌ ŽŶ ĂůŝĨŽƌŶŝĂ ĞƉĂƌƚŵĞŶƚŽĨ ŽŶƐĞƌǀĂƚŝŽŶŵĂƉƉŝŶŐ͘ EŽ ŶĞǁ ŽƌŵŽƌĞ ƐĞǀĞƌĞŝŵƉĂĐƚ ƌĞůĂƚŝǀĞ ƚŽŵŝŶĞƌĂů ƌĞƐŽƵƌĐĞƐŶŽƚĂůƌĞĂĚǇĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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KǀĞƌĂůůDŝŶĞƌĂůZĞƐŽƵƌĐĞƐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
ϮϬĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨŽŶƐĞƌǀĂƚŝŽŶ͘ϮϬϮϭ͘DŝŶĞƌĂů>ĂŶĚůĂƐƐŝĨŝĐĂƚŝŽŶ͘ ŚƚƚƉƐ͗ͬͬŵĂƉƐ͘ĐŽŶƐĞƌǀĂƚŝŽŶ͘ĐĂ͘ŐŽǀͬĐŐƐͬŝŶĨŽƌŵĂƚŝŽŶǁĂƌĞŚŽƵƐĞͬŝŶĚĞǆ͘Śƚŵů͍ŵĂƉсŵůĐ ;ĂĐĐĞƐƐĞĚƵŐƵƐƚϮϭ͕ϮϬϮϭͿ͘ 175
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϮ EŽŝƐĞ
ϰ͘ϭϮ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶƐŝĚĞƌĞĚŶŽŝƐĞĨƌŽŵĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐĂƐǁĞůůĂƐŶŽŝƐĞĨƌŽŵŽƉĞƌĂƚŝŽŶƐĚƵƌŝŶŐ ĨƵůů ďƵŝůĚŽƵƚ ŽĨƚŚĞKŶƚĂƌŝŽ'W͕ŝŶĐůƵĚŝŶŐ ǀĞŚŝĐůĞƚƌĂĨĨŝĐƚŚĞƉŽƚĞŶƚŝĂůĞǆƉŽƐƵƌĞŽĨŶĞĂƌďǇƌĞƐŝĚĞŶƚƐĂŶĚ ŽƚŚĞƌƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐƚŽŶŽŝƐĞ͘tŝƚŚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐ͕ĂůůŶŽŝƐĞŝŵƉĂĐƚƐǁĞƌĞ ĚĞƚĞƌŵŝŶĞĚƚŽƌĞŵĂŝŶƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞ͕ǁŝƚŚƚŚĞĞǆĐĞƉƚŝŽŶŽĨKŶƚĂƌŝŽ'W /Zϱ͘ϭϮͲϰ͕ǁŚŽƐĞ
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dŚƌĞƐŚŽůĚ;ĂͿ 'ĞŶĞƌĂƚŝŽŶŽĨĂƐƵďƐƚĂŶƚŝĂůƚĞŵƉŽƌĂƌǇŽƌƉĞƌŵĂŶĞŶƚŝŶĐƌĞĂƐĞŝŶĂŵďŝĞŶƚŶŽŝƐĞůĞǀĞůƐ ŝŶƚŚĞǀŝĐŝŶŝƚǇŽĨƚŚĞƉƌŽũĞĐƚŝŶĞǆĐĞƐƐŽĨƐƚĂŶĚĂƌĚƐĞƐƚĂďůŝƐŚĞĚŝŶƚŚĞůŽĐĂůŐĞŶĞƌĂůƉůĂŶ Žƌ ŶŽŝƐĞ ŽƌĚŝŶĂŶĐĞ͕Žƌ ĂƉƉůŝĐĂďůĞ ƐƚĂŶĚĂƌĚƐŽĨ ŽƚŚĞƌ ĂŐĞŶĐŝĞƐ͍ ΀KŶƚĂƌŝŽ 'W /Z
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ŝŶƚŚĞϮϬϮϭ
YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĨŽƵŶĚƚŚĂƚ ƚŚĞďƵŝůĚŽƵƚŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚ
ĐƌĞĂƚĞŝŶĐƌĞĂƐĞĚƚƌĂĨĨŝĐǁŚŝĐŚǁŽƵůĚ ŐĞŶĞƌĂƚĞƐƵďƐƚĂŶƚŝĂůĂŵŽƵŶƚƐŽĨŶŽŝƐĞǁŝƚŚŝŶƚŚĞŝƚǇ͘dŚŝƐǁŽƵůĚ ĂůƐŽĂĨĨĞĐƚƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐĚƵĞƚŽƚŚĞĐŝƚǇǁŝĚĞŝŶĐƌĞĂƐĞŽĨĂŵďŝĞŶƚŶŽŝƐĞůĞǀĞůƐ͘ &ŝŐƵƌĞϱ͘ϭϮͲϭŽĨƚŚĞKŶƚĂƌŝŽ'W
/ZƐŚŽǁƐƚŚĂƚĞǆŝƐƚŝŶŐŶŽŝƐĞůĞǀĞůƐŝŶƚŚĞWƌŽũĞĐƚĂƌĞĂǁĂƐďĞƚǁĞĞŶϲϬƚŽ ϲϱ ĚĞĐŝďĞůƐ ;ĚͿ͘ dŚĞ ŝƚǇ ƉƌŽũĞĐƚĞĚ ƚŚĂƚ ƚŚĞƐĞ ŶŽŝƐĞ ůĞǀĞůƐ ǁŽƵůĚ ƌĞŵĂŝŶ ƚŚĞ ƐĂŵĞ ĂƐ ƐŚŽǁŶ ŝŶ &ŝŐƵƌĞϱ͘ϭϮͲϲ ŽĨ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z͘EŽŝƐĞ ůĞǀĞůƐ ĨŽƌ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ƐŝŵŝůĂƌ ƚŽ ƚŚŽƐĞĐƵƌƌĞŶƚůǇ ŐĞŶĞƌĂƚĞĚĂƚƚŚĞWƌŽũĞĐƚƐŝƚĞĚƵĞƚŽƚŚĞƐŝŵŝůĂƌŝƚǇŽĨƚŚĞƉƌŽƉŽƐĞĚƵƐĞƐǁŝƚŚƚŚĞĞǆŝƐƚŝŶŐƵƐĞƐ͘dŚĞWƌŽũĞĐƚ ĚŽĞƐ ŶŽƚ ŝŶĐůƵĚĞ ƌŽĂĚǁĂǇ ŝŵƉƌŽǀĞŵĞŶƚƐ ǁŚŝĐŚ ǁŽƵůĚ ĂůƚĞƌ ƚƌĂĨĨŝĐƉĂƚƚĞƌŶƐŝŶ ƚŚĞƐƵƌƌŽƵŶĚŝŶŐ ĂƌĞĂ͘ ĐĐŽƌĚŝŶŐƚŽ&ŝŐƵƌĞϱ͘ϭϮͲϴŽĨƚŚĞKŶƚĂƌŝŽ'W
/Z͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚďŽƵŶĚĞĚďǇƌŽĂĚǁĂǇƐǁŚŝĐŚǁŽƵůĚ ĞǆƉĞƌŝĞŶĐĞŝŶĐƌĞĂƐĞĚŶŽŝƐĞůĞǀĞůƐ͘ĞĐĂƵƐĞƚŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĞǆŝƐƚŝŶŐůĂŶĚƵƐĞŽĨ ƚŚĞWƌŽũĞĐƚĂƌĞĂ͕ĨƵƚƵƌĞŶŽŝƐĞŝŵƉĂĐƚƐǁŽƵůĚďĞĂĐĐŽƵŶƚĞĚĨŽƌƚŚƌŽƵŐŚƚŚĞĨŝŶĚŝŶŐƐŽĨƚŚĞKŶƚĂƌŝŽ'W /Z͘
,ŽǁĞǀĞƌ͕ĚĞƐƉŝƚĞƚŚĞ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞKŶƚĂƌŝŽ 'W /Z͕ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŽĐĐƵƉǇ Ă
ƐƉĞĐŝĨŝĐĂƌĞĂŽĨ ƚŚĞŝƚǇǁŚŝĐŚ ǁŽƵůĚŶŽƚĞǆƉĞƌŝĞŶĐĞŝŶĐƌĞĂƐĞĚŶŽŝƐĞůĞǀĞůƐƚŚƌŽƵŐŚƚŚĞďƵŝůĚŽƵƚŽĨƚŚĞ KŶƚĂƌŝŽ'W͘
DŝƚŝŐĂƚŝŽŶǁĂƐĨŽƵŶĚƚŽŶŽƚďĞƐƵŝƚĂďůĞƚŽƌĞĚƵĐĞƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨ/ŵƉĂĐƚϱ͘ϭϮͲϭŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͕
ŚŽǁĞǀĞƌ͕ďĞĐĂƵƐĞƚŚĞWƌŽũĞĐƚŝƐƵŶůŝŬĞůǇ ƚŽŐĞŶĞƌĂƚĞĂƐŝŐŶŝĨŝĐĂŶƚĂŵŽƵŶƚŽĨŶŽŝƐĞĐŽŵƉĂƌĞĚƚŽƚŚĞŝƚǇ͛Ɛ ƉƌŽũĞĐƚŝŽŶƐ͕ŵŝƚŝŐĂƚŝŽŶŝƐŶŽƚ ƌĞƋƵŝƌĞĚ͕ĂŶĚŝŵƉĂĐƚƐǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘,ŽǁĞǀĞƌ͕ŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞϭϮͲϭǁĂƐĨŽƵŶĚƐƵŝƚĂďůĞƚŽƌĞĚƵĐĞƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨ/ŵƉĂĐƚϱ͘ϭϮͲϮŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
176
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϲϮ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
/Z
DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϭϮͲϭǁĂƐƉƌŽƉŽƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘,ŽǁĞǀĞƌ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϭϮͲϭŝƐŶŽƚ
ĂƉƉůŝĐĂďůĞ ƚŽƚŚĞ WƌŽũĞĐƚďĞĐĂƵƐĞƚŚĞWƌŽũĞĐƚ;ϭͿ ĚŽĞƐ ŶŽƚŝŶǀŽůǀĞ ĂŶŽŝƐĞͲƐĞŶƐŝƚŝǀĞƵƐĞĂŶĚ ;ϮͿ ŝƐŶŽƚ ůŽĐĂƚĞĚǁŝƚŚŝŶƚŚĞϲϱĚE
>ĐŽŶƚŽƵƌůŝŶĞ͘
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞůĂŶĚƵƐĞŝŵƉĂĐƚƐ͘ƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞŝŵƉĂĐƚ ǁĂƐŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z͘dŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ďĞ ĚĞƐŝŐŶĞĚ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚ ƚŚĞ ĂƉƉůŝĐĂďůĞ ŐƵŝĚĞůŝŶĞƐĂŶĚƐƚĂŶĚĂƌĚƐǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W͕KŶƚĂƌŝŽD͕ĂŶĚKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘ĞƐƉŝƚĞƚŚĞ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͕WƌŽũĞĐƚŝŵƉĂĐƚƐǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚĂŶĚŶŽ ŶĞǁĂŶĚͬŽƌŵŽĚŝĨŝĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŝƐƐƵĞƐƌĞůĂƚĞĚƚŽŶŽŝƐĞůĞǀĞůƐ͘ dŚƌĞƐŚŽůĚ;ďͿ 'ĞŶĞƌĂƚŝŽŶ ŽĨ ĞǆĐĞƐƐŝǀĞ ŐƌŽƵŶĚďŽƌŶĞ ǀŝďƌĂƚŝŽŶ Žƌ ŐƌŽƵŶĚďŽƌŶĞ ŶŽŝƐĞ ůĞǀĞůƐ͍ ΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϭϮͲϯ͕ϱ͘ϭϮͲϰ΁
EŽ EĞǁ Žƌ DŽƌĞ ^ĞǀĞƌĞ /ŵƉĂĐƚ͗ dŚĞ KŶƚĂƌŝŽ 'W
/Z ĨŽƵŶĚ ƚŚĂƚ ŐƌŽƵŶĚďŽƌŶĞ ǀŝďƌĂƚŝŽŶƐ ĚƵĞ ƚŽ
ĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐŚĂĚƚŚĞƉŽƚĞŶƚŝĂůƚŽĐƌĞĂƚĞƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĂƚĨƵůůďƵŝůĚŽƵƚ ŽĨ ƚŚĞKŶƚĂƌŝŽ'W͘ ŽŶƐƚƌƵĐƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚĐŽƵůĚŐĞŶĞƌĂƚĞǀĂƌǇŝŶŐĚĞŐƌĞĞƐŽĨŐƌŽƵŶĚďŽƌŶĞǀŝďƌĂƚŝŽŶĚĞƉĞŶĚŝŶŐŽŶƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶƉƌŽĐĞĚƵƌĞĂŶĚƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚƵƐĞĚ͘ ĐĐŽƌĚŝŶŐƚŽKŶƚĂƌŝŽD^ĞĐƚŝŽŶϱ͘ϮϵͲϬϰ͕ŵĂŶƵĨĂĐƚƵƌŝŶŐĂŶĚŝŶĚƵƐƚƌŝĂůŶŽŝƐĞůŝŵŝƚƐĂƌĞϳϬĚĚƵƌŝŶŐƚŚĞ ϳĂŵƚŽϭϬƉŵƉĞƌŝŽĚ͕ĂŶĚϳϬĚĚƵƌŝŶŐƚŚĞϭϬƉŵƚŽϳĂŵƉĞƌŝŽĚ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞKŶƚĂƌŝŽ'WƐƚĂƚĞƐ ƚŚĂƚǀŝďƌĂƚŝŽŶĂůĂŶŶŽǇĂŶĐĞĂƌĞůŝŬĞůǇ ƚŽŽĐĐƵƌŽŶĐĞĚĞĐŝďĞůǀĞůŽĐŝƚǇ;sĚͿĞǆĐĞĞĚƐϳϴsĚǁŝƚŚŝŶϮϱĨĞĞƚ ŽĨƚŚĞƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌĂŶĚƐƚƌƵĐƚƵƌĂůĚĂŵĂŐĞŝƐůŝŬĞůǇ ƚŽŽĐĐƵƌŽŶĐĞZŽŽƚDĞĂŶ^ƋƵĂƌĞ;ZD^ͿǀĞůŽĐŝƚǇ ĞǆĐĞĞĚƐ Ϭ͘Ϯ ŝŶĐŚĞƐ ƉĞƌ ƐĞĐŽŶĚ ;ŝŶͬƐĞĐͿ ǁŝƚŚŝŶ Ϯϱ ĨĞĞƚ ŽĨ Ă ƐĞŶƐŝƚŝǀĞ ƌĞĐĞƉƚŽƌ͘dŚĞ ŶĞĂƌĞƐƚƐĞŶƐŝƚŝǀĞ ƌĞĐĞƉƚŽƌƐĂƌĞƚŚĞŵƵůƚŝͲĨĂŵŝůǇƌĞƐŝĚĞŶƚŝĂůƵƐĞƐĂƉƉƌŽǆŝŵĂƚĞůǇϮϬϬĨĞĞƚƐŽƵƚŚŽĨƚŚĞWƌŽũĞĐƚďŽƵŶĚĂƌǇ͘ EŽŝƐĞůĞǀĞůƐĐĂŶďĞĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞĨŽůůŽǁŝŶŐĞƋƵĂƚŝŽŶ͗>ǀ;Ϳс>ǀ;ϮϱĨĞĞƚͿͲ;ϯϬǆůŽŐϭϬ;ͬϮϱĨĞĞƚͿͿ͘ sŝďƌĂƚŝŽŶĂůůĞǀĞůƐĐĂŶďĞ ĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞĨŽůůŽǁŝŶŐĞƋƵĂƚŝŽŶ͗ WWsĞƋƵŝƉсWWsƌĞĨǆ;ϮϱͬͿϭ͘ϱ͘&ŽƌƚŚĞƐĞ ĞƋƵĂƚŝŽŶƐ͕WWsĞƋƵŝƉсƚŚĞƉĞĂŬƉĂƌƚŝĐůĞǀĞůŽĐŝƚǇŝŶŝŶͬƐĞĐŽĨƚŚĞĞƋƵŝƉŵĞŶƚĂĚũƵƐƚĞĚĨŽƌƚŚĞĚŝƐƚĂŶĐĞ͖WWsƌĞĨ сƚŚĞƌĞĨĞƌĞŶĐĞǀŝďƌĂƚŝŽŶůĞǀĞůŝŶŝŶͬƐĞĐ͕сƚŚĞĚŝƐƚĂŶĐĞĨƌŽŵƚŚĞĞƋƵŝƉŵĞŶƚƚŽƚŚĞƌĞĐĞŝǀĞƌ͕ĂŶĚ>ǀсƚŚĞ ǀŝďƌĂƚŝŽŶĂůůĞǀĞů͘Ϯϭ
dĂďůĞ ϳͲϰ ŽĨ ƚŚĞ &ĞĚĞƌĂů dƌĂŶƐŝƚĚŵŝŶŝƐƚƌĂƚŝŽŶ ;&dͿ dƌĂŶƐŝƚEŽŝƐĞĂŶĚ sŝďƌĂƚŝŽŶ /ŵƉĂĐƚƐƐĞƐƐŵĞŶƚ DĂŶƵĂůůŝƐƚƐĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚ ŶŽŝƐĞ ĂŶĚǀŝďƌĂƚŝŽŶ ůĞǀĞůƐ ĂƚϮϱ ĨĞĞƚ;ϭϭϮ sĚͿ͘dĂďůĞϱ͕dǇƉŝĐĂů ŽŶƐƚƌƵĐƚŝŽŶ
ƋƵŝƉŵĞŶƚEŽŝƐĞĂŶĚsŝďƌĂƚŝŽŶ>ĞǀĞůƐĚŝƐƉůĂǇƐŶŽŝƐĞůĞǀĞůƐĂƚϮϬϬĨĞĞƚƵƐŝŶŐƚŚĞĂďŽǀĞ ŶŽŝƐĞĂŶĚǀŝďƌĂƚŝŽŶĞƋƵĂƚŝŽŶƐ͘
Ϯϭ&ĞĚĞƌĂůdƌĂŶƐŝƚĚŵŝŶŝƐƚƌĂƚŝŽŶ͘;ϮϬϭϴͿ͘dƌĂŶƐŝƚ EŽŝƐĞĂŶĚsŝďƌĂƚŝŽŶ /ŵƉĂĐƚƐƐĞƐƐŵĞŶƚDĂŶƵĂů͘WĂŐĞϭϴϱ͘ 177
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϲϯ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dĂďůĞϱ͗dǇƉŝĐĂůŽŶƐƚƌƵĐƚŝŽŶ
ƋƵŝƉŵĞŶƚEŽŝƐĞĂŶĚsŝďƌĂƚŝŽŶ>ĞǀĞůƐ

ƋƵŝƉŵĞŶƚ
WWsĂƚ
Ϯϱ&ĞĞƚ
;ŝŶͬƐĞĐͿ
WWsĂƚ
ϮϬϬ&ĞĞƚ
;ŝŶͬƐĞĐͿ

ǆĐĞĞĚ
dŚƌĞƐŚŽůĚ͍
;͘ϮŝŶͬƐĞĐͿ
sĞůŽĐŝƚǇĂƚ
Ϯϱ&ĞĞƚ
;sĚͿ
sĞůŽĐŝƚǇĂƚ
ϮϬϬ&ĞĞƚ
;sĚͿ

ǆĐĞĞĚ
dŚƌĞƐŚŽůĚ͍
;ϳϴsĚͿ
WŝůĞƌŝǀĞƌ;/ŵƉĂĐƚͿhƉƉĞƌZĂŶŐĞ ϭ͘ϱϭϴ Ϭ͘Ϭϲϳϭ EK ϭϭϮ ϴϰ͘ϵ z ^
WŝůĞƌŝǀĞƌ;/ŵƉĂĐƚͿdǇƉŝĐĂů Ϭ͘ϲϰϰ Ϭ͘ϬϮϴϱ EK ϭϬϰ ϳϲ͘ϵ EK WŝůĞƌŝǀĞƌ;^ŽŶŝĐͿhƉƉĞƌZĂŶŐĞ Ϭ͘ϳϯϰ Ϭ͘ϬϯϮϰ EK ϭϬϱ ϳϳ͘ϵ EK WŝůĞƌŝǀĞƌ;^ŽŶŝĐͿdǇƉŝĐĂů Ϭ͘ϭϳ Ϭ͘ϬϬϳϱ EK ϵϯ ϲϱ͘ϵ EK ůĂŵƐŚŽǀĞůĚƌŽƉ;^ůƵƌƌǇtĂůůͿ Ϭ͘ϮϬϮ Ϭ͘ϬϬϴϵ EK ϵϰ ϲϲ͘ϵ EK ,ǇĚƌŽŵŝůů;^ůƵƌƌǇtĂůůͿŝŶ^Žŝů Ϭ͘ϬϬϴ Ϭ͘ϬϬϬϰ EK ϲϲ ϯϴ͘ϵ EK ,ǇĚƌŽŵŝůů;^ůƵƌƌǇtĂůůͿŝŶZŽĐŬ Ϭ͘Ϭϭϳ Ϭ͘ϬϬϬϴ EK ϳϱ ϰϳ͘ϵ EK sŝďƌĂƚŽƌǇZŽůůĞƌ Ϭ͘Ϯϭ Ϭ͘ϬϬϵϯ EK ϵϰ ϲϲ͘ϵ EK
,ŽĞZĂŵ Ϭ͘Ϭϴϵ Ϭ͘ϬϬϯϵ EK ϴϳ ϱϵ͘ϵ EK
>ĂƌŐĞďƵůůĚŽǌĞƌ Ϭ͘Ϭϴϵ Ϭ͘ϬϬϯϵ EK ϴϳ ϱϵ͘ϵ EK
ĂŝƐƐŽŶĚƌŝůůŝŶŐ Ϭ͘Ϭϴϵ Ϭ͘ϬϬϯϵ EK ϴϳ ϱϵ͘ϵ EK
>ŽĂĚĞĚƚƌƵĐŬƐ Ϭ͘Ϭϳϲ Ϭ͘ϬϬϯϰ EK ϴϲ ϱϴ͘ϵ EK
:ĂĐŬŚĂŵŵĞƌ Ϭ͘Ϭϯϱ Ϭ͘ϬϬϭϱ EK ϳϵ ϱϭ͘ϵ EK
^ŵĂůůƵůůĚŽǌĞƌ Ϭ͘ϬϬϯ Ϭ͘ϬϬϬϭ EK ϱϴ ϯϬ͘ϵ EK
^ŽƵƌĐĞ͗&ĞĚĞƌĂůdƌĂŶƐŝƚĚŵŝŶŝƐƚƌĂƚŝŽŶ͘;ϮϬϭϴͿ͘dƌĂŶƐŝƚEŽŝƐĞĂŶĚsŝďƌĂƚŝŽŶ /ŵƉĂĐƚƐƐĞƐƐŵĞŶƚDĂŶƵĂů͘dĂďůĞϳͲϰ͘WĂŐĞϭϴϰ͘ dŚĞWƌŽũĞĐƚǁŽƵůĚ ŐĞŶĞƌĂƚĞǀŝďƌĂƚŝŽŶĂůůĞǀĞůƐǁĞůůďĞůŽǁ ƚŚĞĂĐĐĞƉƚĂďůĞƚŚƌĞƐŚŽůĚƐĞƐƚĂďůŝƐŚĞĚďǇƚŚĞ &d͘^ŝŵŝůĂƌůǇ͕ƵƐĞŽĨĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚǁŽƵůĚ ŶŽƚŐĞŶĞƌĂƚĞŶŽŝƐĞůĞǀĞůƐďĞǇŽŶĚĞƐƚĂďůŝƐŚĞĚůĞǀĞůƐ ĞǆĐĞƉƚŝŶƚŚĞƵƉƉĞƌƌĂŶŐĞŽĨŝŵƉĂĐƚƉŝůĞĚƌŝǀĞƌƐ͘,ŽǁĞǀĞƌ͕ƚŚĞƵƉƉĞƌƌĂŶŐĞŝƐŶŽƚĐŽŶƐŝƐƚĞŶƚůǇƵƐĞĚĚƵƌŝŶŐ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐ ĂŶĚ ǁŽƵůĚ ŽĐĐƵƌ ŝŶ ƐŚŽƌƚͲƚĞƌŵƚĞŵƉŽƌĂƌǇ ĞǀĞŶƚƐ͘ dŚĞ ƚǇƉŝĐĂů ƌĂŶŐĞ ŝƐ ŵŽƌĞ ŝŶĚŝĐĂƚŝǀĞŽĨĂǀĞƌĂŐĞĞƋƵŝƉŵĞŶƚƵƐĂŐĞ͘
/ƚŝƐĂůƐŽĂĐŬŶŽǁůĞĚŐĞĚƚŚĂƚĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐǁŽƵůĚŽĐĐƵƌƚŚƌŽƵŐŚŽƵƚƚŚĞWƌŽũĞĐƚƐŝƚĞĂŶĚǁŽƵůĚŶŽƚ ďĞ ĐŽŶĐĞŶƚƌĂƚĞĚĂƚƚŚĞƉŽŝŶƚ ĐůŽƐĞƐƚƚŽƚŚĞŶĞĂƌĞƐƚƌĞƐŝĚĞŶƚŝĂůƐƚƌƵĐƚƵƌĞ͘dŚĞƌĞĨŽƌĞ͕ǀŝďƌĂƚŝŽŶŝŵƉĂĐƚƐ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ KŶĐĞŽƉĞƌĂƚŝŽŶĂů͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚďĞĂƐŽƵƌĐĞŽĨŐƌŽƵŶĚďŽƌŶĞǀŝďƌĂƚŝŽŶ͘KƉĞƌĂƚŝŽŶƐŽĨƚŚĞWƌŽũĞĐƚ ǁŽƵůĚ ŝŶĐůƵĚĞ ƚƌƵĐŬĚĞůŝǀĞƌŝĞƐ͘ƵĞƚŽƚŚĞƌĂƉŝĚĚƌŽƉͲŽĨĨ ƌĂƚĞŽĨ ŐƌŽƵŶĚͲďŽƌŶĞ ǀŝďƌĂƚŝŽŶĂŶĚ ƚŚĞƐŚŽƌƚ ĚƵƌĂƚŝŽŶŽĨƚŚĞĂƐƐŽĐŝĂƚĞĚĞǀĞŶƚƐ͕ǀĞŚŝĐƵůĂƌƚƌĂĨĨŝĐͲŝŶĚƵĐĞĚŐƌŽƵŶĚͲďŽƌŶĞǀŝďƌĂƚŝŽŶŝƐƌĂƌĞůǇƉĞƌĐĞƉƚŝďůĞ ďĞǇŽŶĚƚŚĞƌŽĂĚǁĂǇƌŝŐŚƚͲŽĨͲǁĂǇ͕ĂŶĚƌĂƌĞůǇƌĞƐƵůƚƐŝŶǀŝďƌĂƚŝŽŶůĞǀĞůƐƚŚĂƚĐĂƵƐĞĚĂŵĂŐĞƚŽďƵŝůĚŝŶŐƐŝŶ ƚŚĞǀŝĐŝŶŝƚǇ͘dŚĞŶĞĂƌĞƐƚƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐĂƌĞĂƉƉƌŽǆŝŵĂƚĞůǇ ϮϬϬĨĞĞƚĨƌŽŵƚŚĞWƌŽũĞĐƚďŽƵŶĚĂƌǇ͘ƚ ϮϬϬĨĞĞƚ͕ŝŵƉĂĐƚƐǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŶƚŚŝƐƌĞŐĂƌĚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
/Z
DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐϭϮͲϮĂŶĚϭϮͲϯǁĞƌĞƉƌŽƉŽƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘,ŽǁĞǀĞƌ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐ
ϭϮͲϮ ĂŶĚ ϭϮͲϯ ĂƌĞ ŶŽƚ ĂƉƉůŝĐĂďůĞ ďĞĐĂƵƐĞ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ŶŽƚ ŐĞŶĞƌĂƚĞŶŽŝƐĞ Žƌ ǀŝďƌĂƚŝŽŶƐ ĂďŽǀĞ ĞƐƚĂďůŝƐŚĞĚƚŚƌĞƐŚŽůĚƐĂŶĚ ŝƐŶŽƚĚŝƌĞĐƚůǇĂĚũĂĐĞŶƚƚŽƚŚĞhŶŝŽŶ WĂĐŝĨŝĐZĂŝůƌŽĂĚŽƌ ^ŽƵƚŚĞƌŶ ĂůŝĨŽƌŶŝĂ ZĞŐŝŽŶĂůZĂŝůƵƚŚŽƌŝƚǇŵĂŝŶůŝŶĞƐ͘
178
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϲϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶĐůƵƐŝŽŶ
EŽ ŶĞǁ ŝŵƉĂĐƚƐŽƌ Ă ƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶ ƚŚĞ ƐĞǀĞƌŝƚǇŽĨ Ă ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/ZǁŽƵůĚŽĐĐƵƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞ ƚŚĂƚǁĂƐŶŽƚ ŬŶŽǁŶ ĂŶĚ ĐŽƵůĚ ŶŽƚ ŚĂǀĞďĞĞŶ ŬŶŽǁŶ ĂƚƚŚĞ ƚŝŵĞƚŚĞ KŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐ
ĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚŝŵƉĂĐƚƚŚĞƉƌŝŽƌĨŝŶĚŝŶŐŽĨŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƵŶĚĞƌƚŚŝƐŝƐƐƵĞĂƌĞĂ͘ dŚƌĞƐŚŽůĚ;ĚͿ ƐƵďƐƚĂŶƚŝĂůƚĞŵƉŽƌĂƌǇŽƌ ƉĞƌŝŽĚŝĐŝŶĐƌĞĂƐĞŝŶ ĂŵďŝĞŶƚŶŽŝƐĞůĞǀĞůƐ ŝŶ ƚŚĞƉƌŽũĞĐƚ ǀŝĐŝŶŝƚǇ ĂďŽǀĞ ůĞǀĞůƐ ĞǆŝƐƚŝŶŐ ǁŝƚŚŽƵƚƚŚĞ ƉƌŽũĞĐƚ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚ ϱ͘ϭϮͲϱ΁
΀EŽƚŝŶĐůƵĚĞĚŝŶƚŚĞϮϬϮϭ
YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
ŽŶƐƚƌƵĐƚŝŽŶ
ŽŶƐƚƌƵĐƚŝŽŶͲƌĞůĂƚĞĚĂĐƚŝǀŝƚŝĞƐǁŽƵůĚ ƚĞŵƉŽƌĂƌŝůǇŝŶĐƌĞĂƐĞĂŵďŝĞŶƚ ŶŽŝƐĞ ůĞǀĞůƐŝŶ ƚŚĞ WƌŽũĞĐƚǀŝĐŝŶŝƚǇ͘ ŽŶƐƚƌƵĐƚŝŽŶͲƌĞůĂƚĞĚŶŽŝƐĞůĞǀĞůƐĂƚĂŶĚŶĞĂƌƚŚĞWƌŽũĞĐƚƐŝƚĞǁŽƵůĚĨůƵĐƚƵĂƚĞĚĞƉĞŶĚŝŶŐŽŶƚŚĞůĞǀĞůĂŶĚ ƚǇƉĞŽĨ ĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚǇŽŶ ĂŐŝǀĞŶĚĂǇ͘dŚĞĂŶĂůǇƐŝƐƉĞƌĨŽƌŵĞĚŝŶ ƚŚĞ&ŝŶĂů /ZƵƐĞĚĐŽŶƐĞƌǀĂƚŝǀĞ
ĂƐƐƵŵƉƚŝŽŶƐƚŽĐĂůĐƵůĂƚĞǁŽƌƐƚͲĐĂƐĞĐŽŶƐƚƌƵĐƚŝŽŶŶŽŝƐĞůĞǀĞůƐ͘EŽŝƐĞĨƌŽŵWƌŽũĞĐƚĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐ ĐŽƵůĚďĞĂƵĚŝďůĞĂƚŶĞĂƌďǇƌĞƐŝĚĞŶƚŝĂůƵƐĞƐ͘ŽŶƐƚƌƵĐƚŝŽŶŶŽŝƐĞǁŽƵůĚďĞŝŶƚĞƌŵŝƚƚĞŶƚĂŶĚůĂƐƚĨŽƌƐĞǀĞƌĂů ĚĂǇƐŽƌĂĨĞǁǁĞĞŬƐ͘^ŚŽƌƚͲƚĞƌŵŶŽŝƐĞŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĞǆĐĂǀĂƚŝŽŶ͕ĞĂƌƚŚŵŽǀŝŶŐ͕ĂŶĚĐŽŶƐƚƌƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐǁŽƵůĚ ďĞ ĐŽŶƐŝĚĞƌĞĚ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝĨ͗ϭͿ ĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐĂƌĞůŝŵŝƚĞĚ ƚŽĚĂǇƚŝŵĞ ŚŽƵƌƐ͖ ϮͿ ĐŽŶƐƚƌƵĐƚŝŽŶ ĞƋƵŝƉŵĞŶƚ ŝƐ ĞƋƵŝƉƉĞĚ ǁŝƚŚ ŶŽŝƐĞ ĐŽŶƚƌŽů ĨŝůƚĞƌƐ͕ ĂƐ ĂƉƉƌŽƉƌŝĂƚĞ͖ ĂŶĚ ϯͿĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚǇŝƐŵŽŶŝƚŽƌĞĚƚŽĞŶƐƵƌĞƚŚĂƚŶŽŝƐĞƌĞĚƵĐƚŝŽŶƐƉĞĐŝĨŝĐĂƚŝŽŶƐĂŶĚŐƵŝĚĞůŝŶĞƐĂƌĞŵĞƚ͘ WƌŽũĞĐƚĐŽŶƐƚƌƵĐƚŝŽŶǁŽƵůĚďĞŝŵƉůĞŵĞŶƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƐĞĐŽŶĚŝƚŝŽŶƐ͘/ƚŝƐŶŽƚĂŶƚŝĐŝƉĂƚĞĚƚŚĂƚ ĐŽŶƐƚƌƵĐƚŝŽŶŽĨ ƚŚĞ WƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚ ŝŶ ŶĞǁ ƐŚŽƌƚͲƚĞƌŵŶŽŝƐĞ ŝŵƉĂĐƚƐŽƌ ŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇ ŽĨ ŝŵƉĂĐƚƐƉƌĞǀŝŽƵƐůǇĂŶĂůǇǌĞĚŝŶƚŚĞ&ŝŶĂů
/Z͘ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůǇǁŝƚŚ DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞϭϮͲϰ͘dŚĞƌĞĨŽƌĞ͕ŶŽĨƵƌƚŚĞƌĞŶǀŝƌŽŶŵĞŶƚĂůƌĞǀŝĞǁŝƐƌĞƋƵŝƌĞĚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
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DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞϭϮͲϰǁĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘,ŽǁĞǀĞƌ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϭϮͲϰŝƐŶŽƚ
ĂƉƉůŝĐĂďůĞƚŽƚŚĞWƌŽũĞĐƚƐŝŶĐĞƚŚĞĂŶĂůǇƐŝƐǁŝƚŚŝŶƚŚŝƐĚĚĞŶĚƵŵ /ZƉƌŽǀŝĚĞƐƐƵŝƚĂďůĞƐƵďƐƚĂŶƚŝĂƚŝŽŶĨŽƌ
ƚŚĞĂŶƚŝĐŝƉĂƚŝŽŶŽĨůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŶŽŝƐĞŝŵƉĂĐƚƐ͘ ŽŶĐůƵƐŝŽŶ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞϭϮͲϰ ǁŽƵůĚ ƌĞĚƵĐĞ ĐŽŶƐƚƌƵĐƚŝŽŶŶŽŝƐĞ ůĞǀĞůƐ͘ĚĚŝƚŝŽŶĂůůǇ͕ ŶŽ ŶĞǁ ŝŶĨŽƌŵĂƚŝŽŶ ŽĨ ƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W

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dŚƌĞƐŚŽůĚ;Ğ͕ĨͿ&ŽƌĂƉƌŽũĞĐƚůŽĐĂƚĞĚǁŝƚŚŝŶƚŚĞǀŝĐŝŶŝƚǇŽĨĂƉƌŝǀĂƚĞĂŝƌƐƚƌŝƉŽƌĂŶĂŝƌƉŽƌƚůĂŶĚƵƐĞƉůĂŶ Žƌ͕ǁŚĞƌĞƐƵĐŚĂƉůĂŶŚĂƐŶŽƚďĞĞŶĂĚŽƉƚĞĚ͕ǁŝƚŚŝŶƚǁŽŵŝůĞƐ ŽĨĂ Ɖ ƵďůŝĐĂŝƌƉŽƌƚŽƌ ƉƵďůŝĐƵƐĞĂŝƌƉŽƌƚ͕ǁŽƵůĚƚŚĞƉƌŽũĞĐƚĞǆƉŽƐĞƉĞŽƉůĞƌĞƐŝĚŝŶŐŽƌǁŽƌŬŝŶŐŝŶƚŚĞƉƌŽũĞĐƚ ĂƌĞĂƚŽĞǆĐĞƐƐŝǀĞŶŽŝƐĞůĞǀĞůƐ͍΀KŶƚĂƌŝŽ'W
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EŽEĞǁ ŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ/ŶƚĞƌŶĂƚŝŽŶĂůŝƌƉŽƌƚŝƐůŽĐĂƚĞĚĂƉƉƌŽǆŝŵĂƚĞůǇ ϭ͘ϰŵŝůĞƐ ŶŽƌƚŚĞĂƐƚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͘ƐƐƚĂƚĞĚŝŶ^ĞĐƚŝŽŶϰ͘ϴ;ƚŚƌĞƐŚŽůĚĨͿĂďŽǀĞ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐůŽĐĂƚĞĚǁŝƚŚŝŶ ƚŚĞŝƌƉŽƌƚ/ŶĨůƵĞŶĐĞƌĞĂŽĨƚŚĞ>KEd͘,ŽǁĞǀĞƌ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐůŽĐĂƚĞĚǁŝƚŚŝŶƚŚĞϲϬͲϲϱĚE >
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŶŽŝƐĞŝŵƉĂĐƚǌŽŶĞŽĨƚŚĞĂŝƌƉŽƌƚ͘ϮϮdŚĞ WƌŽũĞĐƚ͛ƐƉƌŽǆŝŵŝƚǇǁŽƵůĚ ŶŽƚůŝŬĞůǇ ďĞ ƐŝŐŶŝĨŝĐĂŶƚůǇĂĨĨĞĐƚĞĚďǇ ŽǀĞƌŚĞĂĚĂŝƌĐƌĂĨƚŶŽŝƐĞ͘ĐĐŽƌĚŝŶŐƚŽdĂďůĞϮͲϯŽĨƚŚĞ>KEdůĂŶĚƵƐĞƉůĂŶ͕ŝŶĚƵƐƚƌŝĂůƵƐĞƐĂƌĞĐŽŶƐŝĚĞƌĞĚ ŶŽƌŵĂůůǇĐŽŵƉĂƚŝďůĞĨŽƌŶŽŝƐĞůĞǀĞůƐƌĂŶŐŝŶŐĨƌŽŵůĞƐƐƚŚĂŶϲϬĚƚŽϳϬĚ͘ϮϯĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞWƌŽũĞĐƚ ƐŝƚĞŝƐŶŽƚůŽĐĂƚĞĚǁŝƚŚŝŶ ƚŚĞǀŝĐŝŶŝƚǇ ŽĨ ĂƉƌŝǀĂƚĞĂŝƌƐƚƌŝƉ͘ĐĐŽƌĚŝŶŐůǇ͕ŶŽ ŶĞǁŝŵƉĂĐƚŽƌ ĂƐƵďƐƚĂŶƚŝĂů ŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨĂƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /ZǁŽƵůĚ
ŽĐĐƵƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞ ďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
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KŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞƌĞĂƌĞŶŽŶĞǁƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚ͖ƚŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌ ƌĞĨŝŶĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ͘
KǀĞƌĂůůEŽŝƐĞ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ
ďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚ ŝŵƉĂĐƚƐ͕ǁŝƚŚƌĞƐƉĞĐƚƚŽŶŽŝƐĞ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘

ϮϮdŚĞKŶƚĂƌŝŽ/ŶƚĞƌŶĂƚŝŽŶĂůŝƌƉŽƌƚʹ/ŶƚĞƌŐĞŶĐǇŽůůĂďŽƌĂƚŝǀĞ;KEdͲ/Ϳ͘;ϮϬϭϴͿ͘KŶƚĂƌŝŽ/ŶƚĞƌŶĂƚŝŽŶĂůŝƌƉŽƌƚ>ĂŶĚhƐĞŽŵƉĂƚŝďŝůŝƚǇ WůĂŶ ;:ƵůǇϮϬϭϴŵĞŶĚŵĞŶƚͿDĂƉϮͲϯ͘ZĞƚƌŝĞǀĞĚĨƌŽŵ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚͲŝĂĐ͘ĐŽŵͬǁƉͲĐŽŶƚĞŶƚͬƵƉůŽĂĚƐͬϮϬϭϵͬϬϮͬKEdͲ/ͲƉŽůŝĐǇͲŵĂƉͲϮͲϯƌĞǀϮͲ ϭ͘ƉĚĨ;ĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭͿ Ϯϯ/ďŝĚ͘dĂďůĞϮͲϯ͘ZĞƚƌŝĞǀĞĚĨƌŽŵ͗ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚͲŝĂĐ͘ĐŽŵͬǁƉͲĐŽŶƚĞŶƚͬƵƉůŽĂĚƐͬϮϬϭϵͬϬϮͬ>hWͲŚĂƉͲϮͲdĂďůĞͲϮͲϯͲEŽŝƐĞͲƌŝƚĞƌŝĂͲ ŵĞŶĚŵĞŶƚͲ:ƵůǇͲϮϬϭϴͲ&ŝŶĂůͲŽĐ͘ƉĚĨ ;ĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭͿ 180
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϯ WŽƉƵůĂƚŝŽŶĂŶĚ,ŽƵƐŝŶŐ
ϰ͘ϭϯ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
ĐĐŽƌĚŝŶŐƚŽƚŚĞKŶƚĂƌŝŽ'W
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dŚƌĞƐŚŽůĚ;ĂͿ /ŶĚƵĐĞ ƐƵďƐƚĂŶƚŝĂů ƵŶƉůĂŶŶĞĚ ƉŽƉƵůĂƚŝŽŶ ŐƌŽǁƚŚ ŝŶ ĂŶ ĂƌĞĂ͕ ĞŝƚŚĞƌ ĚŝƌĞĐƚůǇ ;ĨŽƌĞǆĂŵƉůĞ͕ ďǇ ƉƌŽƉŽƐŝŶŐŶĞǁŚŽŵĞƐĂŶĚ ďƵƐŝŶĞƐƐĞƐͿŽƌ ŝŶĚŝƌĞĐƚůǇ ;ĨŽƌ ĞǆĂŵƉůĞ͕ ƚŚƌŽƵŐŚĞǆƚĞŶƐŝŽŶŽĨƌŽĂĚƐŽƌŽƚŚĞƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞͿ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϭϯͲϭ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ
'WǁŽƵůĚ ŝŶĐůƵĚĞ ƉŽƉƵůĂƚŝŽŶ ŐƌŽǁƚŚƚŚĂƚĞǆĐĞĞĚĞĚ^'ƉƌŽũĞĐƚŝŽŶƐ͘^'ƉƌŽũĞĐƚŝŽŶƐĨŽƌ ϮϬϯϱǁĞƌĞ ϯϯϳ͕Ϭϵϱ͕ ĂŶĚ ƚŚĞKŶƚĂƌŝŽ 'W ĂŶƚŝĐŝƉĂƚĞĚ Ă ƉŽƉƵůĂƚŝŽŶ ŽĨ ϯϲϬ͕ϴϱϭ ƉĞƌƐŽŶƐ͘ ,ŽǁĞǀĞƌ͕ ŝŵƉĂĐƚƐ ǁĞƌĞ ĂŶƚŝĐŝƉĂƚĞĚƚŽďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚĚƵĞƚŽƚŚĞĐƌĞĂƚŝŽŶŽĨďĂůĂŶĐĞĚůĂŶĚƵƐĞƐ͘ dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚŝŶĚƵĐĞƉŽƉƵůĂƚŝŽŶŐƌŽǁƚŚƚŚƌŽƵŐŚƚŚĞŝŶƚƌŽĚƵĐƚŝŽŶŽĨŚŽƵƐŝŶŐďĞĐĂƵƐĞŶŽŚŽƵƐŝŶŐ ŝƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞĚĞǀĞůŽƉŵĞŶƚ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƉƌŽƉŽƐĞŵŽĚŝĨŝĐĂƚŝŽŶƐƚŽůĂŶĚ ƵƐĞƐĂŶĚ ǁŽƵůĚ ŝŶǀŽůǀĞ ƐŝŵŝůĂƌĂĐƚŝǀŝƚŝĞƐƚŽ ƚŚŽƐĞ ĐƵƌƌĞŶƚůǇ ĐŽŶĚƵĐƚĞĚ ŽŶ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ͘tŚŝůĞ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶƉŚĂƐĞŵĂǇƚĞŵƉŽƌĂƌŝůǇŐĞŶĞƌĂƚĞĞŵƉůŽǇŵĞŶƚ͕ƚŚĞƐĞũŽďƐǁŽƵůĚŶŽƚƌĞŵĂŝŶĐŽŶƐƚĂŶƚĞŶŽƵŐŚ ƚŽŐĞŶĞƌĂƚĞƉŽƉƵůĂƚŝŽŶŐƌŽǁƚŚ͘
^ϯϯϬ͕ƚŚĞ,ŽƵƐŝŶŐĐĐŽƵŶƚĂďŝůŝƚǇĐƚ͕ǁŚŝĐŚŝƐƉĂƌƚŽĨ ƚŚĞWůĂŶŶŝŶŐĂŶĚŽŶŝŶŐ>Ăǁ͕ƉƌŽŚŝďŝƚƐĂůŽĐĂů ĂŐĞŶĐǇ ĨƌŽŵ ĚŝƐĂƉƉƌŽǀŝŶŐ͕ Žƌ ĐŽŶĚŝƚŝŽŶŝŶŐ ĂƉƉƌŽǀĂů ŝŶ Ă ŵĂŶŶĞƌƚŚĂƚ ƌĞŶĚĞƌƐ ŝŶĨĞĂƐŝďůĞ͕ Ă ŚŽƵƐŝŶŐ ĚĞǀĞůŽƉŵĞŶƚƉƌŽũĞĐƚĨŽƌǀĞƌǇůŽǁ͕ůŽǁͲ͕ŽƌŵŽĚĞƌĂƚĞͲŝŶĐŽŵĞŚŽƵƐĞŚŽůĚƐŽƌĂŶĞŵĞƌŐĞŶĐǇƐŚĞůƚĞƌƵŶůĞƐƐ ƚŚĞůŽĐĂůĂŐĞŶĐǇŵĂŬĞƐƐƉĞĐŝĨŝĞĚǁƌŝƚƚĞŶĨŝŶĚŝŶŐƐďĂƐĞĚŽŶĂƉƌĞƉŽŶĚĞƌĂŶĐĞŽĨƚŚĞĞǀŝĚĞŶĐĞŝŶƚŚĞƌĞĐŽƌĚ͘ /ŶƚŚŝƐŝŶƐƚĂŶĐĞ͕^ϯϯϬŝƐŶŽƚĂƉƉůŝĐĂďůĞďĞĐĂƵƐĞĂƐƉƌĞǀŝŽƵƐůǇŶŽƚĞĚ͕ƚŚĞWƌŽũĞĐƚĚŽĞƐŶŽƚƉƌŽƉŽƐĞĂŶǇ ŚŽƵƐŝŶŐĂŶĚƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐŶŽƚǌŽŶĞĚĨŽƌƌĞƐŝĚĞŶƚŝĂůĚĞǀĞůŽƉŵĞŶƚ͘ƵĞƚŽƚŚĞĐŽŶƚŝŶƵĂƚŝŽŶŽĨƐŝŵŝůĂƌ ůĂŶĚƵƐĞƐ͕ĂůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
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EŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐǁĞƌĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
ŽŶĐůƵƐŝŽŶ
dŚĞƌĞĂƌĞŶŽŶĞǁƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚ͖ƚŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌ ƌĞĨŝŶĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ͘
181
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dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϲϳ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚƌĞƐŚŽůĚ;ďͿ ŝƐƉůĂĐĞ ƐƵďƐƚĂŶƚŝĂů ŶƵŵďĞƌƐ ŽĨ ĞǆŝƐƚŝŶŐ ƉĞŽƉůĞ Žƌ ŚŽƵƐŝŶŐ͕ ŶĞĐĞƐƐŝƚĂƚŝŶŐ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶŽĨƌĞƉůĂĐĞŵĞŶƚŚŽƵƐŝŶŐĞůƐĞǁŚĞƌĞ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϭϯͲϮ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚŝŶǀŽůǀĞƐƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨŶĞǁŝŶĚƵƐƚƌŝĂůƵƐĞƐŝŶĂŶĂƌĞĂ ƚŚĂƚŝƐĐƵƌƌĞŶƚůǇŽĐĐƵƉŝĞĚďǇŝŶĚƵƐƚƌŝĂůǁĂƌĞŚŽƵƐŝŶŐůĂŶĚƵƐĞƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚďĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ ĞƐƚĂďůŝƐŚĞĚůĂŶĚƵƐĞĚĞƐŝŐŶĂƚŝŽŶƐŽĨƚŚĞWƌŽũĞĐƚĂƌĞĂĂŶĚƚŚĞƌĞĨŽƌĞƚŚĞKŶƚĂƌŝŽ'W͘ƐƚŚĞWƌŽũĞĐƚĚŽĞƐ ŶŽƚ ƌĞŵŽǀĞ ĐƵƌƌĞŶƚůǇ ŽĐĐƵƉŝĞĚ ŚŽƵƐŝŶŐ͕ Žƌ ƌĞĚƵĐĞ ƚŚĞ ŝƚǇ͛ƐĐĂƉĂĐŝƚǇ ĨŽƌ ŚŽƵƐŝŶŐ͕ ƚŚĞ ƉƌŽǀŝƐŝŽŶ ŽĨ ƌĞƉůĂĐĞŵĞŶƚŚŽƵƐŝŶŐǁŽƵůĚŶŽƚďĞŶĞĐĞƐƐĂƌǇ͘EŽŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌŝŶƚŚŝƐƌĞŐĂƌĚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞ&ŝŶĂů
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EŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐǁĞƌĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
ŽŶĐůƵƐŝŽŶ
dŚĞƌĞĂƌĞŶŽŶĞǁƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞWƌŽũĞĐƚ͖ƚŚĞƌĞĨŽƌĞ͕ŶŽŶĞǁĂŶĚͬŽƌ ƌĞĨŝŶĞĚŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚ͘
KǀĞƌĂůůWŽƉƵůĂƚŝŽŶĂŶĚ,ŽƵƐŝŶŐ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ
ďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚ ŝŵƉĂĐƚƐ͕ǁŝƚŚƌĞƐƉĞĐƚƚŽƉŽƉƵůĂƚŝŽŶĂŶĚŚŽƵƐŝŶŐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘

182
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϰ WƵďůŝĐ^ĞƌǀŝĐĞƐ
ϰ͘ϭϰ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞ KŶƚĂƌŝŽ 'W
/ZĐŽŶĐůƵĚĞĚ ƚŚĂƚ ƚŚĞƌĞ ŝƐ ƉŽƚĞŶƚŝĂů ĨŽƌ ƐĞƌǀŝĐĞ ŶĞĞĚƐ ƚŽ ŝŶĐƌĞĂƐĞ ƌĞůĂƚŝǀĞ ƚŽ ĨŝƌĞ ƉƌŽƚĞĐƚŝŽŶ͕ƉŽůŝĐĞ ƉƌŽƚĞĐƚŝŽŶ͕ĂŶĚ ƐĐŚŽŽůƐǁŝƚŚƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨ ƚŚĞKŶƚĂƌŝŽ'W͘,ŽǁĞǀĞƌ͕ƚŚĞƐĞ ŝŶĐƌĞĂƐĞƐŝŶ ƉŽƉƵůĂƚŝŽŶ ǁŽƵůĚ Ɛƚŝůů ƌĞŵĂŝŶǁŝƚŚŝŶ ƚŚĞ ŝƚǇ͛ƐƐĞƌǀŝĐĞĐĂƉĂĐŝƚǇ͘dŚĞ KŶƚĂƌŝŽ 'W /ZĂůƐŽ
ĐŽŶĐůƵĚĞĚƚŚĂƚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚŶŽƚƐŝŐŶŝĨŝĐĂŶƚůǇŝŶĐƌĞĂƐĞƚŚĞĚĞŵĂŶĚĨŽƌůŝďƌĂƌǇ ƐĞƌǀŝĐĞƐƚŚĂƚǁŽƵůĚƌĞƋƵŝƌĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨĂĚĚŝƚŝŽŶĂůůŝďƌĂƌǇĨĂĐŝůŝƚŝĞƐ͘ dŚƌĞƐŚŽůĚ;ĂͿ ZĞƐƵůƚŝŶĂƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞƉŚǇƐŝĐĂůŝŵƉĂĐƚĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶŽĨŶĞǁŽƌ ƉŚǇƐŝĐĂůůǇ ĂůƚĞƌĞĚ ŐŽǀĞƌŶŵĞŶƚĂů ĨĂĐŝůŝƚŝĞƐ͕ ŶĞĞĚ ĨŽƌ ŶĞǁ Žƌ ƉŚǇƐŝĐĂůůǇ ĂůƚĞƌĞĚ ŐŽǀĞƌŶŵĞŶƚĂů ĨĂĐŝůŝƚŝĞƐ͕ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ŽĨ ǁŚŝĐŚ ĐŽƵůĚ ĐĂƵƐĞ ƐŝŐŶŝĨŝĐĂŶƚ ĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚƐ͕ŝŶŽƌĚĞƌƚŽŵĂŝŶƚĂŝŶĂĐĐĞƉƚĂďůĞƐĞƌǀŝĐĞƌĂƚŝŽƐ͕ƌĞƐƉŽŶƐĞƚŝŵĞƐ ŽƌŽƚŚĞƌƉĞƌĨŽƌŵĂŶĐĞŽďũĞĐƚŝǀĞƐĨŽƌĨŝƌĞƉƌŽƚĞĐƚŝŽŶƐĞƌǀŝĐĞƐ͕ƉŽůŝĐĞƉƌŽƚĞĐƚŝŽŶƐĞƌǀŝĐĞƐ͕ ƐĐŚŽŽů ƐĞƌǀŝĐĞƐ͕ ƉĂƌŬƐ ƐĞƌǀŝĐĞƐ͕ ĂŶĚ ŽƚŚĞƌ ƉƵďůŝĐ ĨĂĐŝůŝƚŝĞƐ͍ ΀KŶƚĂƌŝŽ 'W /Z
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EŽEĞǁ ŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞ WƌŽũĞĐƚĚŽĞƐŶŽƚ ŝŶĐůƵĚĞ Žƌ ƌĞƋƵŝƌĞ ĐŽŶƐƚƌƵĐƚŝŽŶŽĨ ĂŶǇŶĞǁ Žƌ ƉŚǇƐŝĐĂůůǇ ĂůƚĞƌĞĚ ĨŝƌĞ ƉƌŽƚĞĐƚŝŽŶ͕ ƉŽůŝĐĞ ƉƌŽƚĞĐƚŝŽŶ͕ ƐĐŚŽŽů͕ Žƌ ŽƚŚĞƌ ƉƵďůŝĐ ĨĂĐŝůŝƚŝĞƐ͘ WƌŝŽƌ ƚŽ ĐŽŵŵĞŶĐĞŵĞŶƚ ŽĨ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐ͕ƚŚĞ WƌŽũĞĐƚ ƉůĂŶƐ ǁŽƵůĚ ďĞ ƌĞǀŝĞǁĞĚ ďǇ ĂƉƉůŝĐĂďůĞ ůŽĐĂů ĂŐĞŶĐŝĞƐƚŽ ĞŶƐƵƌĞ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ KŶƚĂƌŝŽ D ĂŶĚKŶƚĂƌŝŽ ĞǀĞůŽƉŵĞŶƚ ŽĚĞ͕ ĂƐ ǁĞůů ĂƐ Ăůů ĂƉƉůŝĐĂďůĞ ƌĞŐƵůĂƚŝŽŶƐƚŽ ĞŶƐƵƌĞ ĂĚĞƋƵĂƚĞƐŝƚĞ ƐŝŐŶĂŐĞ͕ůŝŐŚƚŝŶŐ͕ĂŶĚ ŽƚŚĞƌ ĐƌŝŵĞ ƐĂĨĞƚǇƉƌĞǀĞŶƚĂƚŝǀĞ ŵĞĂƐƵƌĞƐ͘dŚŝƐŝŶĐůƵĚĞƐ ĨĂŝƌ ƵƐĞ ĨĞĞƐǁŚŝĐŚ ĂƌĞ ƐŽƵƌĐĞĚĨƌŽŵ ĚĞǀĞůŽƉĞƌƐ ƚŚĂƚĂƌĞĚŝƐƚƌŝďƵƚĞĚ ƚŽ ŝƚǇ ƐĞƌǀŝĐĞƐƐƵĐŚĂƐĨŝƌĞĂŶĚƉŽůŝĐĞƉƌŽƚĞĐƚŝŽŶĨĂĐŝůŝƚŝĞƐ͘dŚĞŶĞĂƌĞƐƚKŶƚĂƌŝŽ&ŝƌĞĞƉĂƌƚŵĞŶƚ;K&ͿƐƚĂƚŝŽŶŝƐ K&^ƚĂƚŝŽŶϯůŽĐĂƚĞĚĂƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϴŵŝůĞƐŶŽƌƚŚĞĂƐƚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͘dŚĞŶĞĂƌĞƐƚKŶƚĂƌŝŽWŽůŝĐĞ ĞƉĂƌƚŵĞŶƚ;KWͿŝƐĂƉƉƌŽǆŝŵĂƚĞůǇϮ͘ϰŵŝůĞƐƐŽƵƚŚĞĂƐƚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͘ ŽŶƐƚƌƵĐƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂĚǀĞƌƐĞƉŚǇƐŝĐĂůŝŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶŽĨ Žƌ ŶĞĞĚ ĨŽƌ ŶĞǁ Žƌ ƉŚǇƐŝĐĂůůǇ ĂůƚĞƌĞĚƉƵďůŝĐ ĨĂĐŝůŝƚŝĞƐ͕ĂŶĚ ǁŽƵůĚ ŶŽƚ ĂĚǀĞƌƐĞůǇ ĂĨĨĞĐƚƐĞƌǀŝĐĞ ƌĂƚŝŽƐ͕ ƌĞƐƉŽŶƐĞƚŝŵĞƐ͕Žƌ ŽƚŚĞƌ ƉĞƌĨŽƌŵĂŶĐĞŽďũĞĐƚŝǀĞƐ͘ŽŵƉůŝĂŶĐĞǁŝƚŚ ĂƉƉůŝĐĂďůĞ ůŽĐĂů ƌĞŐƵůĂƚŝŽŶƐǁŽƵůĚ ĞŶƐƵƌĞƚŚĂƚWƌŽũĞĐƚĐŽŶƐƚƌƵĐƚŝŽŶǁŽƵůĚƌĞƐƵůƚŝŶĂůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƚŽƉƵďůŝĐƐĞƌǀŝĐĞƐ͘ ^ŝŶĐĞƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐĂůƌĞĂĚǇƐĞƌǀĞĚďǇƚŚĞĞǆŝƐƚŝŶŐĨŝƌĞƐƚĂƚŝŽŶ͕ĂŶĚƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞĐŽŶƐƚƌƵĐƚĞĚ ƉƵƌƐƵĂŶƚƚŽĞǆŝƐƚŝŶŐĂůŝĨŽƌŶŝĂ&ŝƌĞŽĚĞƌĞŐƵůĂƚŝŽŶƐ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶƚŚĞŶĞĞĚĨŽƌŶĞǁŽƌ ƉŚǇƐŝĐĂůůǇ ĂůƚĞƌĞĚ ƉŽůŝĐĞ ĂŶĚͬŽƌ ĨŝƌĞ ĚĞƉĂƌƚŵĞŶƚ ĨĂĐŝůŝƚŝĞƐ ƚŚĂƚĐŽƵůĚ ĐĂƵƐĞƐŝŐŶŝĨŝĐĂŶƚ ĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚƐ͘
dŚĞ WƌŽũĞĐƚ ĚŽĞƐ ŶŽƚ ŚĂǀĞ Ă ƌĞƐŝĚĞŶƚŝĂů ĐŽŵƉŽŶĞŶƚ ĂŶĚ ǁŽƵůĚ ƚŚĞƌĞĨŽƌĞŶŽƚ ĚŝƌĞĐƚůǇ ŝŶƚƌŽĚƵĐĞ ŶĞǁ ƌĞƐŝĚĞŶƚƐƚŽƚŚĞŝƚǇƚŚĂƚǁŽƵůĚƌĞƋƵŝƌĞƉƵďůŝĐƐĞƌǀŝĐĞƐ͘ EŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞ ƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐǁĞƌĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
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ϰ͘ϭϱ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞƉŽƉƵůĂƚŝŽŶŐƌŽǁƚŚŝŶĐůƵĚĞĚŝŶ
ƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚ ŝŶĐƌĞĂƐĞĚĞŵĂŶĚĨŽƌƉĂƌŬůĂŶĚĂŶĚŽƉĞŶƐƉĂĐĞďĞǇŽŶĚƚŚĞ ƉƌĞĨĞƌƌĞĚƌĂƚŝŽŽĨƚŚƌĞĞĂĐƌĞƐƉĞƌϭ͕ϬϬϬƌĞƐŝĚĞŶƚƐĂŶĚǁŽƵůĚŶĞĐĞƐƐŝƚĂƚĞĂƉŽůŝĐǇĐŚĂŶŐĞƚŽŝŶĐƌĞĂƐĞƚŚŝƐ ƌĂƚŝŽƚŽϱĂĐƌĞƐƉĞƌϭ͕ϬϬϬƌĞƐŝĚĞŶƚƐ;ĐƵƌƌĞŶƚůǇWŽůŝĐǇWZϭͲϱͿ͘WŽůŝĐǇWZϭͲϲĂůƐŽƉƌŽǀŝĚĞƐĂŵŝŶŝŵƵŵŽĨƚǁŽ ĂĐƌĞƐŽĨĚĞǀĞůŽƉĞĚƉƌŝǀĂƚĞƉĂƌŬƐƉĂĐĞƉĞƌϭ͕ϬϬϬƌĞƐŝĚĞŶƚƐ͘ dŚĞ WƌŽũĞĐƚ ĚŽĞƐ ŶŽƚ ŝŶĐůƵĚĞ ƌĞƐŝĚĞŶƚŝĂů ƵƐĞƐǁŚŝĐŚ ǁŽƵůĚ ĚŝƌĞĐƚůǇ ŝŶĐƌĞĂƐĞƚŚĞ ŝƚǇ͛ƐƉŽƉƵůĂƚŝŽŶ Žƌ ĚĞŵĂŶĚƐŽŶƉĂƌŬĨĂĐŝůŝƚŝĞƐ͘^ƉĞĐŝĨŝĐĂůůǇ͕ƚŚĞWƌŽũĞĐƚŝƐŶŽƚĂŶƚŝĐŝƉĂƚĞĚƚŽƐƵďƐƚĂŶƚŝĂůůǇŝŶĐƌĞĂƐĞƚŚĞƵƐĞŽĨ ĞǆŝƐƚŝŶŐŶĞŝŐŚďŽƌŚŽŽĚ ĂŶĚ ƌĞŐŝŽŶĂůƉĂƌŬƐŽƌŽƚŚĞƌ ƌĞĐƌĞĂƚŝŽŶĂůĨĂĐŝůŝƚŝĞƐƐƵĐŚƚŚĂƚƐƵďƐƚĂŶƚŝĂůƉŚǇƐŝĐĂů ĚĞƚĞƌŝŽƌĂƚŝŽŶŽĨƚŚĞĨĂĐŝůŝƚǇǁŽƵůĚŽĐĐƵƌŽƌďĞĂĐĐĞůĞƌĂƚĞĚ͕ŶŽƌǁŽƵůĚŝƚ ŝŶĐůƵĚĞƌĞĐƌĞĂƚŝŽŶĂůĨĂĐŝůŝƚŝĞƐŽƌ ƌĞƋƵŝƌĞƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶŽƌĞǆƉĂŶƐŝŽŶŽĨƌĞĐƌĞĂƚŝŽŶĂůĨĂĐŝůŝƚŝĞƐǁŚŝĐŚŵŝŐŚƚŚĂǀĞĂŶĂĚǀĞƌƐĞƉŚǇƐŝĐĂůĞĨĨĞĐƚ ŽŶƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
EŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐǁĞƌĞƉƌŽƉŽƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
KǀĞƌĂůůZĞĐƌĞĂƚŝŽŶ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ
ďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽƌĞĐƌĞĂƚŝŽŶ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂŶ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
185
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϭ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϲ dƌĂŶƐƉŽƌƚĂƚŝŽŶ
ϰ͘ϭϲ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞKŶƚĂƌŝŽ'W
/ZŝĚĞŶƚŝĨŝĞĚŽŶĞŝŵƉĂĐƚĂƌĞĂǁŚŝĐŚǁŽƵůĚ ĐƌĞĂƚĞƐŝŐŶŝĨŝĐĂŶƚĂŶĚƵŶĂǀŽŝĚĂďůĞŝŵƉĂĐƚƐ͘ dŚĞKŶƚĂƌŝŽ'W
/ZĨŽƵŶĚƚŚĂƚƚŚƌŽƵŐŚƚŚĞďƵŝůĚŽƵƚŽĨƚŚĞKŶƚĂƌŝŽ'W͕ƚƌĂĨĨŝĐǁŽƵůĚŝŶĐƌĞĂƐĞĂŶĚůŽǁĞƌ ƚŚĞƐĞƌǀŝĐĞůĞǀĞůƐŽĨ ŝŶƚĞƌƐĞĐƚŝŽŶƐǁŝƚŚŝŶƚŚĞŝƚǇƐŝŐŶŝĨŝĐĂŶƚůǇ͘DŝƚŝŐĂƚŝŽŶŝƐƉƌŽƉŽƐĞĚŝŶŽƌĚĞƌƚŽƌĞĚƵĐĞ ƚŚŝƐ ŝŵƉĂĐƚ͖ ŚŽǁĞǀĞƌ͕ ƚŚĞ ŝŵƉĂĐƚ ǁĂƐ ĚĞƚĞƌŵŝŶĞĚ ƚŽ ďĞ ƐŝŐŶŝĨŝĐĂŶƚ ĂŶĚ ƵŶĂǀŽŝĚĂďůĞ ƌĞŐĂƌĚůĞƐƐŽĨ ŵŝƚŝŐĂƚŝŽŶ͘KƚŚĞƌƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐĚƵĞƚŽƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚǁĞƌĞĨŽƵŶĚƚŽďĞůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚǁŝƚŚŽƵƚƚŚĞŶĞĞĚĨŽƌŵŝƚŝŐĂƚŝŽŶ͘
ϰ͘ϭϲ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;Ă͕ŐͿ ŽŶĨůŝĐƚǁŝƚŚĂ ƉƌŽŐƌĂŵ͕ƉůĂŶ͕ŽƌĚŝŶĂŶĐĞŽƌƉŽůŝĐǇĂĚĚƌĞƐƐŝŶŐƚŚĞĐŝƌĐƵůĂƚŝŽŶƐǇƐƚĞŵ͕ ŝŶĐůƵĚŝŶŐƚƌĂŶƐŝƚ͕ƌŽĂĚǁĂǇ͕ďŝĐǇĐůĞĂŶĚƉĞĚĞƐƚƌŝĂŶĨĂĐŝůŝƚŝĞƐ͍΀hƉĚĂƚĞĚƚŽϮϬϮϭ Y
ƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϭϲͲϭĂŶĚϱ͘ϭϲͲϱ΁ dŚƌĞƐŚŽůĚ;ďͿ tŽƵůĚƚŚĞƉƌŽũĞĐƚĐŽŶĨůŝĐƚŽƌďĞŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚ Y'ƵŝĚĞůŝŶĞƐƐĞĐƚŝŽŶϭϱϬϲϰ͘ϯ͕
ƐƵďĚŝǀŝƐŝŽŶ;ďͿ͍΀KŶƚĂƌŝŽ'W/ŵƉĂĐƚϱ͘ϭϲͲϭ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
/ZĚŝĚŶŽƚƐƚƵĚǇƚŚĞŝŶƚĞƌƐĞĐƚŝŽŶƐŶĞĂƌĞƐƚƚŽƚŚĞWƌŽũĞĐƚ ƐŝƚĞ͘,ŽǁĞǀĞƌ͕ƚŚĞŶĞĂƌĞƐƚŵĂũŽƌŝŶƚĞƌƐĞĐƚŝŽŶƐǁŽƵůĚƌĞŵĂŝŶĂƚĂůĞǀĞůŽĨƐĞƌǀŝĐĞ;>K^ͿƚŚĂƚŝƐƐƵŝƚĂďůĞĂŶĚ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘dŚĞƐĞŝŶƚĞƌƐĞĐƚŝŽŶƐŝŶĐůƵĚĞĂŵƉƵƐǀĞŶƵĞĂŶĚWŚŝůĂĚĞůƉŚŝĂ^ƚƌĞĞƚ͕'ƌŽǀĞǀĞŶƵĞ ĂŶĚ&ƌĂŶĐŝƐǀĞŶƵĞ͕ĂŶĚ'ƌŽǀĞǀĞŶƵĞĂŶĚWŚŝůĂĚĞůƉŚŝĂ^ƚƌĞĞƚ͘ dŚĞWƌŽũĞĐƚǁŽƵůĚŝŶǀŽůǀĞ ƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨĂǁĂƌĞŚŽƵƐŝŶŐĨĂĐŝůŝƚǇƚŚĂƚŝƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞůĂŶĚƵƐĞ ĚĞƐŝŐŶĂƚŝŽŶƐĂŶĚƌĞŐƵůĂƚŝŽŶƐŽĨƚŚĞWƌŽũĞĐƚĂƌĞĂ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞĚĞǀĞůŽƉĞĚƐŝŵŝůĂƌůǇ ƚŽƚŚĞĐƵƌƌĞŶƚĞǆŝƐƚŝŶŐƵƐĞƐǁŚŝĐŚ ĐŽŶƐŝƐƚŽĨŝŶĚƵƐƚƌŝĂůƐƚƌƵĐƚƵƌĞƐĂŶĚĂĐƚŝǀŝƚŝĞƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚ ŝŶĐůƵĚĞ ƌŽĂĚǁĂǇŵŽĚŝĨŝĐĂƚŝŽŶ ƚŽ ĂĚũĂĐĞŶƚƐƚƌĞĞƚƐ;ĞĚĂƌ^ƚƌĞĞƚĂŶĚ ŽŶsŝĞǁǀĞŶƵĞͿ ĂƉĂƌƚĨƌŽŵƚŚĞ ƌĞƉůĂĐĞŵĞŶƚŽĨ ƚŚĞĨŝǀĞ;ϱͿ ĞǆŝƐƚŝŶŐĚƌŝǀĞǁĂǇƐǁŝƚŚƚǁŽ;ϮͿ ƉƌŽƉŽƐĞĚĚƌŝǀĞǁĂǇƐƚŽƉƌŽǀŝĚĞ ŝŶŐƌĞƐƐĂŶĚ ĞŐƌĞƐƐƚŽͬĨƌŽŵƚŚĞWƌŽũĞĐƚƐŝƚĞ͘dŚĞƐŝŵŝůĂƌŝƚǇďĞƚǁĞĞŶƚŚĞĞǆŝƐƚŝŶŐƵƐĞƐĂŶĚƚŚĞWƌŽũĞĐƚŝŵƉůǇƚŚĂƚƚƌĂĨĨŝĐ ŝŶƚĞŶƐŝƚǇǁŽƵůĚŶŽƚƐƵďƐƚĂŶƚŝĂůůǇĐŚĂŶŐĞ͘&ƵƌƚŚĞƌ͕ƚŚĞŝŶƚĞƌƐĞĐƚŝŽŶƐƐƚƵĚŝĞĚďǇƚŚĞKŶƚĂƌŝŽ'W /ZƐŚŽǁĂ
ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ>K^ƚŚƌŽƵŐŚƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'W͘ ƐǁĞůů͕dŚĞWƌŽũĞĐƚĂůƐŽĚŽĞƐŶŽƚŝŶĐůƵĚĞ ƌŽĂĚǁĂǇŝŵƉƌŽǀĞŵĞŶƚƐƚŚĂƚǁŽƵůĚŵŽĚŝĨǇ ƉĞĚĞƐƚƌŝĂŶ͕ŵĂƐƐ ƚƌĂŶƐŝƚ͕ŽƌďŝĐǇĐůĞŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘ZŽĂĚǁĂǇƐǁŽƵůĚĐŽŶƚŝŶƵĞƚŽĨƵŶĐƚŝŽŶƵŶĚĞƌƚŚĞŝƌĐƵƌƌĞŶƚĨŽƌŵ͘ DŽƌĞŽǀĞƌ͕ǁŝƚŚƌĞƐƉĞĐƚƚŽ
Y'ƵŝĚĞůŝŶĞƐƐĞĐƚŝŽŶϭϱϬϲϰ͘ϯƌĞŐĂƌĚŝŶŐƚŚĞWƌŽũĞĐƚ͛ƐǀĞŚŝĐůĞƐŵŝůĞƐƚƌĂǀĞůĞĚ ;sDdͿŝŵƉĂĐƚ͕ƚŚĞWƌŽũĞĐƚŝƐƐĐƌĞĞŶĞĚŽƵƚĨƌŽŵsDdĚƵĞƚŽŝƚƐůŽĐĂƚŝŽŶǁŝƚŚŝŶĂůŽǁsDdŐĞŶĞƌĂƚŝŶŐǌŽŶĞ͘ dŚĞƌĞĨŽƌĞ͕ŝŵƉĂĐƚƐĨƌŽŵƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
dŚĞ KŶƚĂƌŝŽ 'W
/ZƉƌŽƉŽƐĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϭϲͲϭ ƚŽ ŵŝŶŝŵŝǌĞ ŝŵƉĂĐƚƐƚŽ ůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚ͘ ,ŽǁĞǀĞƌ͕ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞϭϲͲϭŝƐŝŵƉŽƐĞĚƐŽůĞůǇƵƉŽŶƚŚĞŝƚǇ͕ĂŶĚŝƐƚŚĞƌĞĨŽƌĞŶŽƚĂƉƉůŝĐĂďůĞƚŽƚŚĞ ƉƌŽƉŽƐĞĚWƌŽũĞĐƚ͘
186
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϮ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚ ŶŽƚĨƵƌƚŚĞƌĞǆĐĞĞĚƌŽĂĚǁĂǇƵƐĂŐĞĐĂƉĂĐŝƚŝĞƐŽƌƚƌĂĨĨŝĐƚŚƌĞƐŚŽůĚƐĞƐƚĂďůŝƐŚĞĚǁŝƚŚŝŶ ƚŚĞŝƚǇ͘EŽŶĞǁŝŵƉĂĐƚƐŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨ ƚŚĞƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚĞǀĂůƵĂƚĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ'W
/ZǁŽƵůĚ ŽĐĐƵƌ͘ ĚĚŝƚŝŽŶĂůůǇ͕ ŶŽ ŶĞǁ ŝŶĨŽƌŵĂƚŝŽŶ ŽĨ ƐƵďƐƚĂŶƚŝĂů ŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚ ŬŶŽǁŶ ĂŶĚ ĐŽƵůĚ ŶŽƚ ŚĂǀĞďĞĞŶ ŬŶŽǁŶ ĂƚƚŚĞ ƚŝŵĞƚŚĞKŶƚĂƌŝŽ 'W /ZǁĂƐ
ĐĞƌƚŝĨŝĞĚƚŚĂƚǁŽƵůĚŝŵƉĂĐƚƚŚĞƉƌŝŽƌĨŝŶĚŝŶŐƵŶĚĞƌƚŚŝƐŝƐƐƵĞĂƌĞĂ͘ dŚƌĞƐŚŽůĚ;ĐͿ ZĞƐƵůƚŝŶĂĐŚĂŶŐĞŝŶĂŝƌƚƌĂĨĨŝĐƉĂƚƚĞƌŶƐ͕ŝŶĐůƵĚŝŶŐĞŝƚŚĞƌĂŶŝŶĐƌĞĂƐĞŝŶƚƌĂĨĨŝĐůĞǀĞůƐŽƌ Ă ĐŚĂŶŐĞ ŝŶ ůŽĐĂƚŝŽŶ ƚŚĂƚ ƌĞƐƵůƚƐ ŝŶ ƐƵďƐƚĂŶƚŝĂů ƐĂĨĞƚǇ ƌŝƐŬƐ͍ ΀KŶƚĂƌŝŽ 'W /Z
/ŵƉĂĐƚϱ͘ϭϲͲϮ΁΀EŽƚŝŶĐůƵĚĞĚŝŶƚŚĞϮϬϮϭ
YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚĚŽĞƐŶŽƚŝŶǀŽůǀĞƚŚĞŵŽĚŝĨŝĐĂƚŝŽŶŽĨĂŝƌƚƌĂĨĨŝĐŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ ƉůĂŶƐ͕ŽƌƉŽůŝĐŝĞƐ͘EŽŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
EŽ ŶĞǁ ŝŵƉĂĐƚƐŽƌ Ă ƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶ ƚŚĞ ƐĞǀĞƌŝƚǇŽĨ Ă ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
/ZǁŽƵůĚŽĐĐƵƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞ ƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶ ĂŶĚĐŽƵůĚ ŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶ ĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚƚŚĂƚ
ǁŽƵůĚŝŵƉĂĐƚƚŚĞƉƌŝŽƌĨŝŶĚŝŶŐŽĨŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƵŶĚĞƌƚŚŝƐŝƐƐƵĞĂƌĞĂ͘ dŚƌĞƐŚŽůĚ;ĚͿ ^ƵďƐƚĂŶƚŝĂůůǇŝŶĐƌĞĂƐĞŚĂǌĂƌĚƐĚƵĞƚŽĂĚĞƐŝŐŶĨĞĂƚƵƌĞ;Ğ͘Ő͕͘ƐŚĂƌƉĐƵƌǀĞƐŽƌĚĂŶŐĞƌŽƵƐ ŝŶƚĞƌƐĞĐƚŝŽŶƐͿ Žƌ ŝŶĐŽŵƉĂƚŝďůĞ ƵƐĞƐ ;Ğ͘Ő͕͘ ĨĂƌŵ ĞƋƵŝƉŵĞŶƚͿ ΀KŶƚĂƌŝŽ 'W /Z
/ŵƉĂĐƚϱ͘ϭϲͲϯ΁
dŚƌĞƐŚŽůĚ;ĞͿ ZĞƐƵůƚŝŶŝŶĂĚĞƋƵĂƚĞĞŵĞƌŐĞŶĐǇĂĐĐĞƐƐ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϭϲͲϯ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚ͛ƐŐĞŽŵĞƚƌŝĐĚĞƐŝŐŶĨĞĂƚƵƌĞƐ͕ŝŶĐůƵĚŝŶŐƚŚĞĞŶƚƌĂŶĐĞƐĂŶĚ ŝŶƚĞƌŶĂůĚƌŝǀĞǁĂǇƐǇƐƚĞŵ͕ŚĂǀĞďĞĞŶĚĞƐŝŐŶĞĚƚŽŵĞĞƚƚŚĞƐƚĂŶĚĂƌĚƐĨŽƌƚŚĞƚƵƌŶŝŶŐƌĂĚŝŝŽĨůĂƌŐĞƚƌƵĐŬƐ ǁŝƚŚƚƌĂŝůĞƌƐ͘dŚŝƐŝƐĂůƐŽďĞŶĞĨŝĐŝĂůĨŽƌƚŚĞĂĐĐĞƐƐŽĨĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶƐĞĞƋƵŝƉŵĞŶƚ͕ŝŶĐůƵĚŝŶŐ ĂůĂĚĚĞƌ ĨŝƌĞƚƌƵĐŬ͘dŚĞWƌŽũĞĐƚĂƌĞĂŝƐĐƵƌƌĞŶƚůǇĚĞǀĞůŽƉĞĚ͕ĂŶĚŶŽĂŐƌŝĐƵůƚƵƌĂůĂĐƚŝǀŝƚŝĞƐŽĐĐƵƌŝŶƚŚĞWƌŽũĞĐƚĂƌĞĂ͖ ƚŚĞƌĞĨŽƌĞ͕ƚŚĞƌĞǁŽƵůĚďĞŶŽŝŶĐŽŵƉĂƚŝďůĞƵƐĞǁŝƚŚĨĂƌŵĞƋƵŝƉŵĞŶƚ͘ &ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞKŶƚĂƌŝŽ'W
/ZĨŽƵŶĚƚŚĂƚƚŚĞƐƵƌƌŽƵŶĚŝŶŐŝŶƚĞƌƐĞĐƚŝŽŶƐǁŽƵůĚŽƉĞƌĂƚĞĂƚĂƐƵĨĨŝĐŝĞŶƚ >K^͘ĞƐƉŝƚĞŽŶsŝĞǁǀĞŶƵĞŶŽƚďĞŝŶŐĂŶĂůǇǌĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͕ƚŚĞƌĞƉůĂĐĞŵĞŶƚŽĨƚŚĞĨŝǀĞ;ϱͿ
ĞǆŝƐƚŝŶŐ ĚƌŝǀĞǁĂǇƐ ǁŝƚŚ ƚǁŽ ;ϮͿ ƉƌŽƉŽƐĞĚ ĚƌŝǀĞǁĂǇƐ ŝƐ ŶŽƚ ĞǆƉĞĐƚĞĚ ƚŽ ĐƌĞĂƚĞ ŚĂǌĂƌĚŽƵƐ ĚƌŝǀŝŶŐ ĐŽŶĚŝƚŝŽŶƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚ͕ƚŚĞƌĞĨŽƌĞ͕ŐĞŶĞƌĂƚĞĂůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚƚƌĂ ĨĨŝĐŚĂǌĂƌĚŝŵƉĂĐƚ͕ĂŶĚŶŽ ŵŝƚŝŐĂƚŝŽŶǁŽƵůĚďĞƌĞƋƵŝƌĞĚ͘
WƌŽũĞĐƚ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐĐŽƵůĚ ƌĞƋƵŝƌĞ ƚŚĞ ƌĞƐƚƌŝĐƚŝŽŶŽĨ ƉƵďůŝĐ ĂĐĐĞƐƐŝŶ ŝƚƐĚƵƌĂƚŝŽŶ͘ ^ƚĂŶĚĂƌĚ ĐŽŶƐƚƌƵĐƚŝŽŶƐĂĨĞƚǇŵĞĂƐƵƌĞƐǁŽƵůĚĂůƐŽďĞĂƉƉůŝĞĚǁŚŝĐŚǁŽƵůĚŝŶĐůƵĚĞĂƉƉƌŽƉƌŝĂƚĞƐŝŐŶĂŐĞĂŶĚĨůĂŐŵĞŶ ǀŝƐŝďůĞ ƚŽ ĂƉƉƌŽĂĐŚŝŶŐŵŽƚŽƌŝƐƚƐĂŶĚ ƉĞĚĞƐƚƌŝĂŶƐŝŶĚŝĐĂƚŝŶŐ ĂĐĐĞƐƐŽƉƚŝŽŶƐ ĂŶĚ ǁĂƌŶŝŶŐƐ͘ ŵĞƌŐĞŶĐǇ
ĂĐĐĞƐƐǁŽƵůĚĂůƐŽďĞŵĂŝŶƚĂŝŶĞĚĚƵƌŝŶŐWƌŽũĞĐƚŽƉĞƌĂƚŝŽŶƐƚŚƌŽƵŐŚƚŚĞĚƵĂůĚƌŝǀĞǁĂǇĂĐĐĞƐƐĐŽŶŶĞĐƚĞĚ ƚŽŽŶsŝĞǁǀĞŶƵĞ͘dŚĞƌĞĨŽƌĞ͕ŝŵƉĂĐƚƐǁŽƵůĚďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘ 187
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚ ƌĞƐƵůƚŝŶŶŽŽƌŵŽƌĞƐĞǀĞƌĞŶĞǁŝŵƉĂĐƚĂƐŝƚƉĞƌƚĂŝŶƐƚŽŐĞŽŵĞƚƌŝĐĚĞƐŝŐŶĨĞĂƚƵƌĞŽƌ ŝŶĐŽŵƉĂƚŝďůĞ ƵƐĞƐ͘EŽ ŶĞǁŝŵƉĂĐƚƐŽƌ ĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞ ƐĞǀĞƌŝƚǇŽĨ Ă ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ ĞǀĂůƵĂƚĞĚŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W
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dŚƌĞƐŚŽůĚ;ĨͿ ZĞƐƵůƚŝŶŝŶĂĚĞƋƵĂƚĞƉĂƌŬŝŶŐĐĂƉĂĐŝƚǇ͍΀KŶƚĂƌŝŽ'W /Z/ŵƉĂĐƚϱ͘ϭϲͲϰ΁΀EŽƚŝŶĐůƵĚĞĚŝŶ
ƚŚĞϮϬϮϭ
YƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗WĂƌŬŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƚŚĞWƌŽũĞĐƚƐŝƚĞ͛ƐůĂŶĚƵƐĞĚĞƐŝŐŶĂƚŝŽŶƌĞƋƵŝƌĞ ƚŚĂƚĨŽƌƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨǁĂƌĞŚŽƵƐŝŶŐ͕ŽŶĞƉĂƌŬŝŶŐƐƉĂĐĞďĞƉƌŽǀŝĚĞĚ ĨŽƌĞǀĞƌǇϭ͕ϬϬϬƐƋƵĂƌĞĨĞĞƚĨŽƌ ƚŚĞŝŶŝƚŝĂůϮϬ͕ϬϬϬƐƋƵĂƌĞĨĞĞƚŽĨŐƌŽƐƐĨůŽŽƌĂƌĞĂ͕ĂŶĚŽŶĞƉĂƌŬŝŶŐƐƉĂĐĞƉƌŽǀŝĚĞĚĨŽƌĞǀĞƌǇϮ͕ϬϬϬƐƋƵĂƌĞ ĨĞĞƚƚŚĞƌĞĂĨƚĞƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞƌĞƋƵŝƌĞĚ ƚŽƉƌŽǀŝĚĞ ŽŶĞ ;ϭͿƚƌĂŝůĞƌƉĂƌŬŝŶŐƐƉĂĐĞĨŽƌ ĞǀĞƌǇĨŽƵƌ;ϰͿĚŽĐŬĚŽŽƌƐ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞƉƌŽƉŽƐĞĚϭϳϰ͕ϲϬϯͲƐƋƵĂƌĞĨŽŽƚǁĂƌĞŚŽƵƐĞWƌŽũĞĐƚǁŝƚŚƚǁĞŶƚǇ ƚŚƌĞĞ;ϮϯͿĚŽĐŬĚŽŽƌƐǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽƉƌŽǀŝĚĞϵϳĂƵƚŽƉĂƌŬŝŶŐƐƚĂůůƐĂŶĚϲƚƌĂŝůĞƌƐƚĂůůƐƚŽŵĂŝŶƚĂŝŶ ĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞKŶƚĂƌŝŽĞǀĞůŽƉŵĞŶƚŽĚĞ͘dŚĞWƌŽũĞĐƚŝƐƉƌŽƉŽƐŝŶŐϭϬϬƐƚĂŶĚĂƌĚƉĂƌŬŝŶŐƐƚĂůůƐĂŶĚ ϭϵƚƌĂŝůĞƌƐƚĂůůƐ͕ƚŚĞƌĞďǇĞǆĐĞĞĚŝŶŐƚŚĞƌĞƋƵŝƌĞĚƉĂƌŬŝŶŐĨŽƌƚŚĞWƌŽũĞĐƚƐŝƚĞ͕ĂŶĚƌĞƐƵůƚŝŶŐŝŶĂůĞƐƐƚŚĂŶ ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŶĞŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚ ǁŽƵůĚ ƌĞƐƵůƚŝŶ ŶŽ ŽƌŵŽƌĞ ƐĞǀĞƌĞŶĞǁ ŝŵƉĂĐƚĂƐŝƚƉĞƌƚĂŝŶƐƚŽ ƉĂƌŬŝŶŐĐĂƉĂĐŝƚǇ͘EŽ ŶĞǁ ŝŵƉĂĐƚƐŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨĂƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĞǀĂůƵĂƚĞĚŝŶ ƚŚĞKŶƚĂƌŝŽ'W
/ZǁŽƵůĚŽĐĐƵƌ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚ ŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚ
ŝŵƉĂĐƚƚŚĞƉƌŝŽƌĨŝŶĚŝŶŐŽĨŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƵŶĚĞƌƚŚŝƐŝƐƐƵĞĂƌĞĂ͘ KǀĞƌĂůůdƌĂŶƐƉŽƌƚĂƚŝŽŶ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŽƌŵŽƌĞƐĞǀĞƌĞŶĞǁŝŵƉĂĐƚƚŽƚƌĂŶƐƉŽƌƚĂƚŝŽŶƐǇƐƚĞŵƐ͘tŝƚŚƌĞŐĂƌĚƚŽ Y
^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚ ŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ǁŝƚŚƌĞƐƉĞĐƚ ƚŽƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂŶ^
/ZĂŶĂůǇƐŝƐŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘
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dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϰ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϳ hƚŝůŝƚŝĞƐĂŶĚ^ĞƌǀŝĐĞ^ǇƐƚĞŵƐ
ϰ͘ϭϳ͘ϭ ^ƵŵŵĂƌǇŽĨWƌĞǀŝŽƵƐ
ŶǀŝƌŽŶŵĞŶƚĂůŶĂůǇƐŝƐ
dŚĞ KŶƚĂƌŝŽ 'W
/ZĐŽŶĐůƵĚĞĚ ƚŚĂƚŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞ KŶƚĂƌŝŽ 'W ǁŽƵůĚ ŶŽƚ ƌĞƐƵůƚŝŶ ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚƐƌĞůĂƚŝǀĞƚŽƵƚŝůŝƚŝĞƐĂŶĚƐĞƌǀŝĐĞƐǇƐƚĞŵƐ͘,ŽǁĞǀĞƌ͕ƚŚĞŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞďĞůŽǁ ƌĞĨĞƌĞŶĐĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐǁĂƐƌĞĐŽŵŵĞŶĚĞĚ͘
ϰ͘ϭϳ͘Ϯ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;Ă͕Ğ͕ŚͿZĞƋƵŝƌĞ Žƌ ƌĞƐƵůƚ ŝŶ ƚŚĞ ƌĞůŽĐĂƚŝŽŶ Žƌ ĐŽŶƐƚƌƵĐƚŝŽŶŽĨ ŶĞǁ Žƌ ĞǆƉĂŶĚĞĚ ǁĂƚĞƌ͕ ǁĂƐƚĞǁĂƚĞƌ ƚƌĞĂƚŵĞŶƚ Žƌ ƐƚŽƌŵ ǁĂƚĞƌ ĚƌĂŝŶĂŐĞ͕ ĞůĞĐƚƌŝĐ ƉŽǁĞƌ͕ ŶĂƚƵƌĂů ŐĂƐ͕ Žƌ ƚĞůĞĐŽŵŵƵŶŝĐĂƚŝŽŶƐĨĂĐŝůŝƚŝĞƐ͕ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ŽƌƌĞůŽĐĂƚŝŽŶŽĨ ǁŚŝĐŚ ĐŽƵůĚ ĐĂƵƐĞ ƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐ͍΀KŶƚĂƌŝŽ'W
/Z/ŵƉĂĐƚϱ͘ϭϳͲϭ͕ϱ͘ϭϳͲϯ͕ϱ͘ϭϳͲϱ΁
dŚƌĞƐŚŽůĚ;ďͿ ,ĂǀĞƐƵĨĨŝĐŝĞŶƚǁĂƚĞƌƐƵƉƉůŝĞƐĂǀĂŝůĂďůĞƚŽƐĞƌǀĞƚŚĞƉƌŽũĞĐƚĂŶĚƌĞĂƐŽŶĂďůǇĨŽƌĞƐĞĞĂďůĞ ĨƵƚƵƌĞ ĚĞǀĞůŽƉŵĞŶƚĚƵƌŝŶŐ ŶŽƌŵĂů͕ ĚƌǇ ĂŶĚ ŵƵůƚŝƉůĞ ĚƌǇ ǇĞĂƌƐ͍ ΀KŶƚĂƌŝŽ 'W /Z
/ŵƉĂĐƚϱ͘ϭϳͲϭ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞWƌŽũĞĐƚŝƐƉƌŽƉŽƐĞĚĨŽƌĚĞǀĞůŽƉŵĞŶƚ ŝŶĂŵĂŶŶĞƌƚŚĂƚŚĂƐďĞĞŶ ĂĐĐŽƵŶƚĞĚĨŽƌŝŶƚŚĞKŶƚĂƌŝŽ'W
/Z͕ŝŶĐůƵĚŝŶŐƚŚĞƉŽƚĞŶƚŝĂůǁĂƚĞƌĂŶĚǁĂƐƚĞǁĂƚĞƌƌĞƋƵŝƌĞĚĨŽƌƚŚĞƐŝƚĞ͘ dŚĞWƌŽũĞĐƚǁŽƵůĚ ŐĞŶĞƌĂƚĞĂǁĂƚĞƌĚĞŵĂŶĚŽĨ Ϯ͕ϮϵϬŐĂůůŽŶƐƉĞƌĚĂǇƉĞƌĂĐƌĞ;ŐƉĚͬĂĐͿ͘ϮϰdŚĞϳ͘ϰϳŶĞƚ ĂĐƌĞWƌŽũĞĐƚƐŝƚĞĂƌĞĂǁŽƵůĚƌĞƋƵŝƌĞĂƉƉƌŽǆŝŵĂƚĞůǇϭϳ͕ϭϬϲŐĂůůŽŶƐƉĞƌĚĂǇ;ŐƉĚͿŽƌϭϵ͘ϭϲĂĐƌĞͲĨĞĞƚĂǇĞĂƌ ;&zͿ͘dŚŝƐǁŽƵůĚŚĂǀĞŽŶůǇĐŽŵƉƌŝƐĞĚĂƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϬϰƉĞƌĐĞŶƚŽĨƚŚĞƉƌŽũĞĐƚĞĚƐƵƉƉůǇĂƚƚŚĞƚŝŵĞŽĨ ƚŚĞKŶƚĂƌŝŽ'W
/Z;ϰϳ͕ϳϰϭĂĐƌĞͲĨĞĞƚͿ͘ĂƐĞĚŽŶƚŚĞƵƉĚĂƚĞĚhƌďĂŶtĂƚĞƌDĂŶĂŐĞŵĞŶƚWůĂŶ;htDWͿ͕ ƚŚŝƐǁŽƵůĚĐŽŵƉƌŝƐĞϬ͘ϬϱƉĞƌĐĞŶƚŽĨƚŚĞϮϬϭϱĞǆŝƐƚŝŶŐǁĂƚĞƌƐƵƉƉůǇ;ϯϲ͕ϭϱϯĂĐƌĞͲĨĞĞƚͿ͘dŚĞWƌŽũĞĐƚǁŽƵůĚ ĂůƐŽĐŽŵƉƌŝƐĞϬ͘ϬϰƉĞƌĐĞŶƚŽĨƚŚĞǁĂƚĞƌƐƵƉƉůǇŝŶƚŚĞǇĞĂƌϮϬϮϱ;ϰϯ͕ϳϬϵĂĐƌĞͲĨĞĞƚͿ͘ ĞĐĂƵƐĞ ƚŚĞ WƌŽũĞĐƚ͛Ɛ ƉƌŽƉŽƐĞĚ ǁĂƌĞŚŽƵƐŝŶŐ ƵƐĞ ŝƐ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ͛Ɛ ĞǆŝƐƚŝŶŐ ĂŶĚ ƉƌŽƉŽƐĞĚ ǌŽŶŝŶŐĚŝƐƚƌŝĐƚƐ;'ĞŶĞƌĂů/ŶĚƵƐƚƌŝĂů;/'ͿĂŶĚ>ŝŐŚƚ/ŶĚƵƐƚƌŝĂů;/>ͿͿ͕ƚŚĞWƌŽũĞĐƚŝƐĂŶƚŝĐŝƉĂƚĞĚƚŽ ŚĂǀĞ Ă ŶĞŐůŝŐŝďůĞ ŝŵƉĂĐƚ ŽŶ ƚŚĞ ƉƌĞǀŝŽƵƐůǇ ŵĞŶƚŝŽŶĞĚ ƌĞƐŽƵƌĐĞƐ͘ĚĚŝƚŝŽŶĂůůǇ͕ ƚŚĞ KŶƚĂƌŝŽ 'W /Z
ĚĞƚĞƌŵŝŶĞĚƚŚĂƚŝŵƉĂĐƚƐƚŽ ƐƚŽƌŵǁĂƚĞƌĚƌĂŝŶĂŐĞĨĂĐŝůŝƚŝĞƐǁŽƵůĚ ďĞůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘dŚĞWƌŽũĞĐƚ ǁŽƵůĚŶŽƚĐƌĞĂƚĞŽƌĐŽŶƚƌŝďƵƚĞƌƵŶŽĨĨǁĂƚĞƌƚŚĂƚǁŽƵůĚĞǆĐĞĞĚƚŚĞĐĂƉĂĐŝƚǇŽĨĞǆŝƐƚŝŶŐŽƌƉůĂŶŶĞĚ ƐƚŽƌŵ ǁĂƚĞƌĚƌĂŝŶĂŐĞƐǇƐƚĞŵƐŽƌƉƌŽǀŝĚĞĂĚĚŝƚŝŽŶĂůƐŽƵƌĐĞƐŽĨƉŽůůƵƚĞĚƌƵŶŽĨĨ͘ dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƐƵĨĨŝĐŝĞŶƚƐƚŽƌŵǁĂƚĞƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞĞǆŝƐƚƐƚŽƐĞƌǀŝĐĞƚŚĞďƵŝůĚŽƵƚŽĨ ƚŚĞKŶƚĂƌŝŽ'WǁŚŝůĞƉƌŽũĞĐƚŝŶŐƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨŶĞǁƐƚŽƌŵǁĂƚĞƌĨĂĐŝůŝƚŝĞƐŝŶƵŶĚĞǀĞůŽƉĞĚ ĂƌĞĂƐ͘dŚĞ WƌŽũĞĐƚǁŽƵůĚ ŽĐĐƵƉǇĂƉŽƌƚŝŽŶ ŽĨƚŚĞŝƚǇǁŚŝĐŚŚĂƐďĞĞŶƉƌĞǀŝŽƵƐůǇĚĞǀĞůŽƉĞĚ ǁŝƚŚĐƵƌƌĞŶƚŝŶĚƵƐƚƌŝĂů ƵƐĞƐ͘dŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƋƵŝƌĞƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨĂĚĚŝƚŝŽŶĂůƐƚŽƌŵǁĂƚĞƌĨĂĐŝůŝƚŝĞƐ͘ƐĚŝƐĐƵƐƐĞĚŝŶ ^ĞĐƚŝŽŶϰ͘ϵ͕,ǇĚƌŽůŽŐǇĂŶĚtĂƚĞƌYƵĂůŝƚǇ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůǇǁŝƚŚĂŶĂĚŽƉƚĞĚ EW
^ĂŶĚĂƐƐŽĐŝĂƚĞĚ^tWWWĐŽŶƚĂŝŶŝŶŐDWƐŵĞĂŶƚƚŽŵŝŶŝŵŝǌĞŝŵƉĂĐƚƐĨƌŽŵĚƌĂŝŶĂŐĞ͘ &ƵƌƚŚĞƌŵŽƌĞ͕ĂƐƉƌĞǀŝŽƵƐůǇ ĂĚĚƌĞƐƐĞĚ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞ ƌĞƋƵŝƌĞĚƚŽ ƉƌĞƉĂƌĞĂ^tWWW ƚŚĂƚĚĞƚĂŝůƐ ĐŽŶƐƚƌƵĐƚŝŽŶĂŶĚƉŽƐƚͲĐŽŶƐƚƌƵĐƚŝŽŶŵĞĂƐƵƌĞƐƚŽĐŽŶƚƌŽůƐƵƌĨĂĐĞƌƵŶŽĨĨŝŶĂŵĂŶŶĞƌƚŚĂƚŝƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚ ŵĂƐƚĞƌƉůĂŶŶŝŶŐĞĨĨŽƌƚƐ͘dŚĞƌĞĨŽƌĞ͕ĂƐƐŽĐŝĂƚĞĚŝŵƉĂĐƚƐĂƌĞĐŽŶƐŝĚĞƌĞĚůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚǁŝƚŚŵŝƚŝŐĂƚŝŽŶ ϮϰKŶƚĂƌŝŽDƵŶŝĐŝƉĂů hƚŝůŝƚŝĞƐ ŽŵƉĂŶǇ;ϮϬϭϲͿ͘ϮϬϭϱhƌďĂŶtĂƚĞƌDĂŶĂŐĞŵĞŶƚWůĂŶ͘ƉƉĞŶĚŝǆ ͘WĂŐĞϭϲ͘ZĞƚƌŝĞǀĞĚĨƌŽŵ͗ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽĐĂ͘ŐŽǀͬƐŝƚĞƐͬĚĞĨĂƵůƚͬĨŝůĞƐͬKŶƚĂƌŝŽͲ&ŝůĞƐͬDƵŶŝĐŝƉĂůͲhƚŝůŝƚŝĞƐͲŽŵƉĂŶǇͬϮϬϭϱͺƵƌďĂŶͺǁĂƚĞƌͺŵĂŶĂŐĞŵĞŶƚͺƉůĂŶͺƵƉĚĂƚĞͺϵͲ ϭϴͲϮϬϭϴ͘ƉĚĨ;ĂĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭͿ
189
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ĂƉƉůŝĞĚ͘ ĐĐŽƌĚŝŶŐůǇ͕ ŶŽ ŶĞǁ Žƌ ŵŽƌĞ ƐĞǀĞƌĞŝŵƉĂĐƚ ĨƌŽŵ Ă ƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ƐŝŐŶŝĨŝĐĂŶƚ ŝŵƉĂĐƚ ĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
/Z
dŚĞKŶƚĂƌŝŽ 'W
/ZŝĚĞŶƚŝĨŝĞĚ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐϭϳͲϭ͕ϭϳͲϮ͕ ĂŶĚ ϭϳͲϯ ƚŽ ƌĞĚƵĐĞ ƉŽƚĞŶƚŝĂů ŝŵƉĂĐƚƐ͘ ,ŽǁĞǀĞƌĂůůŽĨ ƚŚĞƐĞŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐ;ϭϳͲϭƚŚƌŽƵŐŚϭϳͲϯͿĂƌĞŝŵƉŽƐĞĚƐŽůĞůǇŽŶ ƚŚĞŝƚǇ͕ĂŶĚ ĂƌĞ ƚŚĞƌĞĨŽƌĞŶŽƚĂƉƉůŝĐĂďůĞƚŽƚŚĞWƌŽũĞĐƚ͘
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŶĞǁŝŵƉĂĐƚĂƐŝƚƉĞƌƚĂŝŶƐƚŽƉůĂĐĞŵĞŶƚŽĨƵƚŝůŝƚŝĞƐĂŶĚ ƐĞǁĞƌƐǇƐƚĞŵƐ͘ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚ ŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
/ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚŝŵƉĂĐƚƚŚĞƉƌŝŽƌ ĨŝŶĚŝŶŐŽĨŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚ͘
dŚƌĞƐŚŽůĚ;ĐͿ tŽƵůĚĞǆĐĞĞĚǁĂƐƚĞǁĂƚĞƌƚƌĞĂƚŵĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞĂƉƉůŝĐĂďůĞZĞŐŝŽŶĂůtĂƚĞƌ YƵĂůŝƚǇŽŶƚƌŽůŽĂƌĚ͍΀KŶƚĂƌŝŽ'W
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Y
ƉƉĞŶĚŝǆ'dŚƌĞƐŚŽůĚƐ΁
dŚƌĞƐŚŽůĚ;ĚͿ tŽƵůĚƌĞƐƵůƚŝŶĂĚĞƚĞƌŵŝŶĂƚŝŽŶďǇƚŚĞǁĂƐƚĞǁĂƚĞƌƚƌĞĂƚŵĞŶƚƉƌŽǀŝĚĞƌǁŚŝĐŚƐĞƌǀĞƐŽƌ ŵĂǇƐĞƌǀĞƚŚĞƉƌŽũĞĐƚƚŚĂƚŝƚŚĂƐŝŶĂĚĞƋƵĂƚĞĐĂƉĂĐŝƚǇƚŽƐĞƌǀĞƚŚĞƉƌŽũĞĐƚΖƐƉƌŽũĞĐƚĞĚ ĚĞŵĂŶĚ ŝŶ ĂĚĚŝƚŝŽŶ ƚŽ ƚŚĞ ƉƌŽǀŝĚĞƌΖƐ ĞǆŝƐƚŝŶŐ ĐŽŵŵŝƚŵĞŶƚƐ͍ ΀KŶƚĂƌŝŽ 'W /Z
/ŵƉĂĐƚϱ͘ϭϳͲϮ΁
EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗^ĞĞĚŝƐĐƵƐƐŝŽŶĨŽƌdŚƌĞƐŚŽůĚ;ĂͿĂďŽǀĞ͘dŚĞŝƚǇŝƐĂŵĞŵďĞƌĂŐĞŶĐǇŽĨ ƚŚĞ/
h͕ǁŚŝĐŚƉƌŽǀŝĚĞƐƚŚĞŝƚǇĐŽŶƚƌĂĐƚŝŶŐƉƌŝǀŝůĞŐĞƐǁŝƚŚƚŚĞ/ hĨŽƌŽĨĨͲƐŝƚĞĐŽůůĞĐƚŝŽŶ͕ƚƌĞĂƚŵĞŶƚ͕
ĚŝƐƉŽƐĂů͕ĂŶĚƌĞƵƐĞ͘dŚĞKŶƚĂƌŝŽ'W
/ZĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞďƵŝůĚŽƵƚ ŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚ ŐĞŶĞƌĂƚĞ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϱϲ͘ϰ ŵŝůůŝŽŶ ŐĂůůŽŶƐ ƉĞƌ ĚĂǇ ;ŵŐĚͿ ŽĨ ǁĂƐƚĞǁĂƚĞƌ͘ dŚĞŝƚǇ ŚĂƐ Ă ƚŽƚĂů ǁĂƐƚĞǁĂƚĞƌ ƚƌĞĂƚŵĞŶƚĐĂƉĂĐŝƚǇŽĨϭϬϴŵŐĚ͘
dŚĞǁĂƐƚĞǁĂƚĞƌŐĞŶĞƌĂƚĞĚďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞĂƉƉƌŽǆŝŵĂƚĞůǇϭϴ͕ϴϳϱŐĂůůŽŶƐƉĞƌĚĂǇŽƌϬ͘ϬϭϵŵŐĚ ďĂƐĞĚŽŶ ǁĂƐƚĞǁĂƚĞƌŐĞŶĞƌĂƚŝŽŶƌĂƚĞƐƉƌĞǀŝŽƵƐůǇĂƉƉƌŽǀĞĚďǇ / h;Ϯ͕ϱϬϬŐĂůůŽŶƐƉĞƌĚĂǇƉĞƌĂĐƌĞĨŽƌ
ŝŶĚƵƐƚƌŝĂůƵƐĞͿ͘dŚŝƐƌĞƉƌĞƐĞŶƚƐĂŶŽŵŝŶĂůŝŶĐƌĞĂƐĞŝŶǁĂƐƚĞǁĂƚĞƌŐĞŶĞƌĂƚŝŽŶĂŶĚŝƐǁŝƚŚŝŶƚŚĞĂƐƐƵŵƉƚŝŽŶƐ ŽĨƚŚĞƉƌĞǀŝŽƵƐĂŶĂůǇƐŝƐĐŽŶƚĂŝŶĞĚǁŝƚŚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘EŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐĂƌĞĂŶƚŝĐŝƉĂƚĞĚǁŝƚŚ
ƌĞƐƉĞĐƚƚŽƉƌŽǀŝĚŝŶŐĂĚĞƋƵĂƚĞǁĂƐƚĞǁĂƚĞƌĨĂĐŝůŝƚŝĞƐƚŽƐĞƌǀĞƚŚĞWƌŽũĞĐƚ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
EŽŵŝƚŝŐĂƚŝŽŶǁĂƐƉƌŽƉŽƐĞĚĨŽƌƚŚŝƐŝŵƉĂĐƚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͘
ŽŶĐůƵƐŝŽŶ
dŚĞWƌŽũĞĐƚǁŽƵůĚƌĞƐƵůƚŝŶŶŽŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚĂƐŝƚƉĞƌƚĂŝŶƐƚŽǁĂƐƚĞǁĂƚĞƌƚƌĞĂƚŵĞŶƚĐĂƉĂĐŝƚǇ͘ ĚĚŝƚŝŽŶĂůůǇ͕ŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞƚŚĂƚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶ ŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W
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190
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dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϲ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚƌĞƐŚŽůĚ;ĨͿ 'ĞŶĞƌĂƚĞƐŽůŝĚǁĂƐƚĞŝŶĞǆĐĞƐƐŽĨ^ƚĂƚĞŽƌůŽĐĂůƐƚĂŶĚĂƌĚƐ͕ŽƌŝŶĞǆĐĞƐƐŽĨƚŚĞĐĂƉĂĐŝƚǇ ŽĨ ůŽĐĂů ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ŽƌŽƚŚĞƌǁŝƐĞŝŵƉĂŝƌ ƚŚĞĂƚƚĂŝŶŵĞŶƚŽĨƐŽůŝĚǁĂƐƚĞ ƌĞĚƵĐƚŝŽŶ ŐŽĂůƐ͍΀KŶƚĂƌŝŽ'W
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dŚƌĞƐŚŽůĚ;ŐͿ ŽŵƉůǇ ǁŝƚŚ ĨĞĚĞƌĂů͕ ƐƚĂƚĞ͕ ĂŶĚ ůŽĐĂů ŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ƌĞĚƵĐƚŝŽŶ ƐƚĂƚƵƚĞƐ ĂŶĚ ƌĞŐƵůĂƚŝŽŶƐƌĞůĂƚĞĚƚŽƐŽůŝĚǁĂƐƚĞ͍ ΀KŶƚĂƌŝŽ'W
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EŽEĞǁŽƌDŽƌĞ^ĞǀĞƌĞ/ŵƉĂĐƚ͗dŚĞKŶƚĂƌŝŽ'W
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ƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐƌĞůĂƚŝǀĞƚŽƐŽůŝĚǁĂƐƚĞ͘/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚǁŽƵůĚďĞĞǆƉĞĐƚĞĚƚŽŐĞŶĞƌĂƚĞ ĂĚĚŝƚŝŽŶĂů ǁĂƐƚĞ ĚƵƌŝŶŐ ƚŚĞ ƚĞŵƉŽƌĂƌǇ͕ ƐŚŽƌƚͲƚĞƌŵ ĐŽŶƐƚƌƵĐƚŝŽŶ ƉŚĂƐĞ͕ ĂƐ ǁĞůů ĂƐ ƚŚĞ ůŽŶŐͲƚĞƌŵ ŽƉĞƌĂƚŝŽŶĂůƉŚĂƐĞ͘
^ŽůŝĚ ǁĂƐƚĞƐĞƌǀŝĐĞ ĨŽƌ ƚŚĞ ŝƚǇŝƐ ƉƌŽǀŝĚĞĚ ďǇ ƚŚĞ ů ^ŽďƌĂŶƚĞ >ĂŶĚĨŝůů ůŽĐĂƚĞĚ ƐŽƵƚŚĞĂƐƚŽĨ ƚŚĞ ŝƚǇ͘ ĐĐŽƌĚŝŶŐƚŽƚŚĞĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨZĞƐŽƵƌĐĞƐZĞĐǇĐůŝŶŐĂŶĚZĞĐŽǀĞƌǇ;ĂůZĞĐǇĐůĞͿ͕ƚŚĞůĂŶĚĨŝůůŚĂƐ ĂŵĂǆŝŵƵŵ ƚŚƌŽƵŐŚƉƵƚ ŽĨ ϭϲ͕Ϭϱϰ ƚŽŶƐ ƉĞƌ ĚĂǇ͘ dŚŝƐ ůĂŶĚĨŝůů ŚĂƐ ĂŵĂǆŝŵƵŵ ƉĞƌŵŝƚƚĞĚ ĐĂƉĂĐŝƚǇ ŽĨ ĂƉƉƌŽǆŝŵĂƚĞůǇϮϬϵ͘ϵŵŝůůŝŽŶĐƵďŝĐ ǇĂƌĚƐ͕ĂŶĚƚŚĞůĂŶĚĨŝůů ŚĂƐĂƌĞŵĂŝŶŝŶŐĐĂƉĂĐŝƚǇŽĨĂƉƉƌŽǆŝŵĂƚĞůǇϭϰϰ ŵŝůůŝŽŶĐƵďŝĐǇĂƌĚƐ͘dŚĞůĂŶĚĨŝůůŚĂƐĂŶĞǆƉĞĐƚĞĚŽƉĞƌĂƚŝŽŶĂůůŝĨĞƚŚƌŽƵŐŚϮϬϱϭ͘Ϯϱ ĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞ KŶƚĂƌŝŽ 'W
/Z͕ƚƌĂƐŚ ŝƐ ŐĞŶĞƌĂƚĞĚĂƚ Ă ƌĂƚĞ ŽĨ ϭ͘ϴϱ ƚŽŶƐ ƉĞƌ ĞŵƉůŽǇĞĞ ƉĞƌ ǇĞĂƌ ;ƚŽŶƐͬĞŵƉůŽǇĞĞͬǇĞĂƌͿ͘ ĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞ ^'
ŵƉůŽǇŵĞŶƚ ĞŶƐŝƚǇ ^ƚƵĚǇ͕ ǁĂƌĞŚŽƵƐĞ ƵƐĞƐ ŝŶ ^ĂŶ
ĞƌŶĂƌĚŝŶŽ ŽƵŶƚǇ ŐĞŶĞƌĂƚĞĞŵƉůŽǇĞĞƐ ĂƚĂ ƌĂƚĞ ŽĨ ŽŶĞ ĞŵƉůŽǇĞĞ ĞǀĞƌǇ Ϯ͕ϭϭϭ ƐƋƵĂƌĞĨĞĞƚ͘ &Žƌ ƚŚĞ ϭϳϰ͕ϲϬϯƐƋƵĂƌĞĨŽŽƚǁĂƌĞŚŽƵƐĞƚŚĂƚǁŽƵůĚĂŵŽƵŶƚƚŽĂƉƉƌŽǆŝŵĂƚĞůǇϴϮĞŵƉůŽǇĞĞƐ͘dŚĞƐĞϴϮĞŵƉůŽǇĞĞƐ ǁŽƵůĚ ƚŚĞƌĞĨŽƌĞŐĞŶĞƌĂƚĞĂƉƉƌŽǆŝŵĂƚĞůǇϭϱϯƚŽŶƐ ŽĨ ƐŽůŝĚ ǁĂƐƚĞ͘dŚŝƐ ĂŵŽƵŶƚƐƚŽ ĂƉƉƌŽǆŝŵĂƚĞůǇ ŽŶĞ ƉĞƌĐĞŶƚŽĨƚŚĞ
ů ^ŽďƌĂŶƚĞĚĂŝůǇƚŚƌŽƵŐŚƉƵƚ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞWƌŽũĞĐƚǁŽƵůĚ ŽĐĐƵƉǇ ĂŶĂƌĞĂĐƵƌƌĞŶƚůǇ ŽĐĐƵƉŝĞĚďǇĂƐŝŵŝůĂƌƵƐĞ͘dŚĞƌĞŵŽǀĂůĂŶĚƌĞƉůĂĐĞŵĞŶƚŽĨƚŚĂƚƵƐĞǁŽƵůĚĨƵƌƚŚĞƌŵŝŶŝŵŝǌĞƚŚĞĂĚĚŝƚŝŽŶĂů ƐŽůŝĚǁĂƐƚĞŐĞŶĞƌĂƚĞĚďǇƚŚĞWƌŽũĞĐƚ͘
ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞWƌŽũĞĐƚ͕ĂƐǁŝƚŚĂůůŽƚŚĞƌĚĞǀĞůŽƉŵĞŶƚ ŝŶƚŚĞŝƚǇ͕ǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽĂĚŚĞƌĞƚŽŝƚǇ ŽƌĚŝŶĂŶĐĞƐǁŝƚŚƌĞƐƉĞĐƚƚŽǁĂƐƚĞƌĞĚƵĐƚŝŽŶĂŶĚƌĞĐǇĐůŝŶŐ͘ƐĂƌĞƐƵůƚ͕ŶŽŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽ^ƚĂƚĞĂŶĚ ůŽĐĂůƐƚĂƚƵƚĞƐŐŽǀĞƌŶŝŶŐƐŽůŝĚ ǁĂƐƚĞĂƌĞĂŶƚŝĐŝƉĂƚĞĚĂŶĚŶŽŵŝƚŝŐĂƚŝŽŶŝƐƌĞƋƵŝƌĞĚ͘ŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ KŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽŵŝƚŝŐĂƚŝŽŶǁĂƐŝĚĞŶƚŝĨŝĞĚĨŽƌƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
dŚĞ WƌŽũĞĐƚǁŽƵůĚ ƌĞƐƵůƚŝŶ ŶŽ ŶĞǁ ŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚ ĂƐŝƚ ƉĞƌƚĂŝŶƐƚŽ ĐŽŶĨůŝĐƚ ǁŝƚŚ ƐŽůŝĚ ǁĂƐƚĞ ƐƚĂŶĚĂƌĚƐĂŶĚ ƌĞŐƵůĂƚŝŽŶƐ͘ĚĚŝƚŝŽŶĂůůǇ͕ ŶŽ ŶĞǁ ŝŶĨŽƌŵĂƚŝŽŶ ŽĨ ƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞ ƚŚĂƚ ǁĂƐŶŽƚ ŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶŬŶŽǁŶĂƚƚŚĞƚŝŵĞƚŚĞKŶƚĂƌŝŽ'W /ZǁĂƐĐĞƌƚŝĨŝĞĚŝƐĂǀĂŝůĂďůĞƚŚĂƚǁŽƵůĚ
ŝŵƉĂĐƚƚŚĞƉƌŝŽƌĨŝŶĚŝŶŐŽĨŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƚŽƐŽůŝĚǁĂƐƚĞŐĞŶĞƌĂƚŝŽŶ͘ ϮϱĂůZĞĐǇĐůĞ͘ϮϬϮϭ͘
ů^ŽďƌĂŶƚĞ>ĂŶĚĨŝůů͘ ŚƚƚƉƐ͗ͬͬǁǁǁϮ͘ĐĂůƌĞĐǇĐůĞ͘ĐĂ͘ŐŽǀͬ^ŽůŝĚtĂƐƚĞͬ^ŝƚĞĐƚŝǀŝƚǇͬĞƚĂŝůƐͬϮϮϴϬ͍ƐŝƚĞ/сϮϰϬϮ ;ĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭͿ͘
191
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dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϳ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
KǀĞƌĂůůhƚŝůŝƚǇĂŶĚ^ĞƌǀŝĐĞ^ǇƐƚĞŵƐ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ
ďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ ǁŝƚŚƌĞƐƉĞĐƚƚŽƵƚŝůŝƚŝĞƐĂŶĚƐĞƌǀŝĐĞƐǇƐƚĞŵƐ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂŶ^ /ZŝƐŶŽƚǁĂƌƌĂŶƚĞĚ͘

192
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dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϴ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϴ dƌŝďĂůƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ
dŚĞƌĞǀŝƐĞĚ
Y'ƵŝĚĞůŝŶĞƐŝŶĐůƵĚĞĂŶĞǁƐĞƉĂƌĂƚĞĚŝƐĐƵƐƐŝŽŶĨŽƌdƌŝďĂůƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ;dZƐͿ͘dŚŝƐ ƐĞĐƚŝŽŶďƌŝĞĨůǇĞǆĂŵŝŶĞƐƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽdZƐƚŚĂƚĐŽƵůĚƌĞƐƵůƚĨƌŽŵŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞ WƌŽũĞĐƚ͘dŚĞĂŶĂůǇƐŝƐŝƐďĂƐĞĚƉƌŝŵĂƌŝůǇŽŶĐŽŶĨŝĚĞŶƚŝĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐƚƵĚŝĞƐĐŽŶĚƵĐƚĞĚĨŽƌƚŚĞWƌŽũĞĐƚ͘ WƵďůŝĐZĞƐŽƵƌĐĞŽĚĞ;WZͿůĂŶŐƵĂŐĞƌĞůĞǀĂŶƚƚŽƚŚĞdZƚŚƌĞƐŚŽůĚƐŝƐďĞůŽǁ͗ WZ^ĞĐƚŝŽŶϮϭϬϳϰĚĞĨŝŶĞƐĂdZĂƐĨŽůůŽǁƐ͗
;ĂͿ ͞dƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐ͟ĂƌĞĞŝƚŚĞƌŽĨƚŚĞĨŽůůŽǁŝŶŐ͗ ;ϭͿ ^ŝƚĞƐ͕ĨĞĂƚƵƌĞƐ͕ƉůĂĐĞƐ͕ĐƵůƚƵƌĂůůĂŶĚƐĐĂƉĞƐ͕ƐĂĐƌĞĚƉůĂĐĞƐ͕ĂŶĚŽďũĞĐƚƐǁŝƚŚĐƵůƚƵƌĂůǀĂůƵĞƚŽĂ ĂůŝĨŽƌŶŝĂEĂƚŝǀĞŵĞƌŝĐĂŶƚƌŝďĞƚŚĂƚĂƌĞĞŝƚŚĞƌŽĨƚŚĞĨŽůůŽǁŝŶŐ͗ ;Ϳ /ŶĐůƵĚĞĚŽƌĚĞƚĞƌŵŝŶĞĚƚŽďĞĞůŝŐŝďůĞĨŽƌŝŶĐůƵƐŝŽŶŝŶƚŚĞĂůŝĨŽƌŶŝĂZĞŐŝƐƚĞƌŽĨ,ŝƐƚŽƌŝĐĂů ZĞƐŽƵƌĐĞƐ͘
;Ϳ /ŶĐůƵĚĞĚŝŶĂůŽĐĂůƌĞŐŝƐƚĞƌŽĨŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞƐĂƐĚĞĨŝŶĞĚ ŝŶ ƐƵďĚŝǀŝƐŝŽŶ;ŬͿŽĨ^ĞĐƚŝŽŶ ϱϬϮϬ͘ϭ͘
;ϮͿ ƌĞƐŽƵƌĐĞĚĞƚĞƌŵŝŶĞĚďǇ ƚŚĞůĞĂĚ ĂŐĞŶĐǇ͕ŝŶ ŝƚƐĚŝƐĐƌĞƚŝŽŶĂŶĚ ƐƵƉƉŽƌƚĞĚ ďǇ ƐƵďƐƚĂŶƚŝĂů ĞǀŝĚĞŶĐĞ͕ƚŽďĞƐŝŐŶŝĨŝĐĂŶƚƉƵƌƐƵĂŶƚƚŽĐƌŝƚĞƌŝĂƐĞƚĨŽƌƚŚŝŶ ƐƵďĚŝǀŝƐŝŽŶ;ĐͿŽĨ^ĞĐƚŝŽŶϱϬϮϰ͘ϭ͘/Ŷ ĂƉƉůǇŝŶŐ ƚŚĞĐƌŝƚĞƌŝĂƐĞƚĨŽƌƚŚ ŝŶ ƐƵďĚŝǀŝƐŝŽŶ ;ĐͿŽĨ ^ĞĐƚŝŽŶ ϱϬϮϰ͘ϭĨŽƌ ƚŚĞƉƵƌƉŽƐĞƐŽĨ ƚŚŝƐ ƉĂƌĂŐƌĂƉŚ͕ƚŚĞ ůĞĂĚ ĂŐĞŶĐǇƐŚĂůů ĐŽŶƐŝĚĞƌ ƚŚĞ ƐŝŐŶŝĨŝĐĂŶĐĞŽĨ ƚŚĞ ƌĞƐŽƵƌĐĞƚŽ Ă ĂůŝĨŽƌŶŝĂ EĂƚŝǀĞŵĞƌŝĐĂŶƚƌŝďĞ͘
;ďͿ ĐƵůƚƵƌĂůůĂŶĚƐĐĂƉĞƚŚĂƚŵĞĞƚƐƚŚĞĐƌŝƚĞƌŝĂŽĨƐƵďĚŝǀŝƐŝŽŶ;ĂͿĂďŽǀĞŝƐĂƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƚŽ ƚŚĞ ĞǆƚĞŶƚƚŚĂƚƚŚĞ ůĂŶĚƐĐĂƉĞŝƐŐĞŽŐƌĂƉŚŝĐĂůůǇĚĞĨŝŶĞĚ ŝŶ ƚĞƌŵƐŽĨ ƚŚĞƐŝǌĞĂŶĚ ƐĐŽƉĞŽĨ ƚŚĞ ůĂŶĚƐĐĂƉĞ͘
;ĐͿ ŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞĚĞƐĐƌŝďĞĚŝŶ^ĞĐƚŝŽŶϮϭϬϴϰ͘ϭ͕ĂƵŶŝƋƵĞĂƌĐŚĂĞŽůŽŐŝĐĂůƌĞƐŽƵƌĐĞĂƐĚĞĨŝŶĞĚŝŶ ƐƵďĚŝǀŝƐŝŽŶ ;ŐͿ ŽĨ ^ĞĐƚŝŽŶ ϮϭϬϴϯ͘Ϯ͕ Žƌ Ă ͞ŶŽŶƵŶŝƋƵĞ ĂƌĐŚĂĞŽůŽŐŝĐĂů ƌĞƐŽƵƌĐĞ͟ ĂƐ ĚĞĨŝŶĞĚ ŝŶ ƐƵďĚŝǀŝƐŝŽŶ ;ŚͿŽĨ ^ĞĐƚŝŽŶϮϭϬϴϯ͘ϮŵĂǇĂůƐŽďĞĂƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞŝĨ ŝƚĐŽŶĨŽƌŵƐǁŝƚŚƚŚĞ ĐƌŝƚĞƌŝĂŽĨƐƵďĚŝǀŝƐŝŽŶ;ĂͿ͘
^ƵďĚŝǀŝƐŝŽŶ ;ŬͿŽĨWZ^ĞĐƚŝŽŶϱϬϮϬ͘ϭŝƐĂƐĨŽůůŽǁƐ͗
;ŬͿ ͞>ŽĐĂů ƌĞŐŝƐƚĞƌ ŽĨ ŚŝƐƚŽƌŝĐĂů ƌĞƐŽƵƌĐĞƐ͟ŵĞĂŶƐ Ă ůŝƐƚ ŽĨ ƉƌŽƉĞƌƚŝĞƐ ŽĨĨŝĐŝĂůůǇ ĚĞƐŝŐŶĂƚĞĚ Žƌ ƌĞĐŽŐŶŝǌĞĚ ĂƐŚŝƐƚŽƌŝĐĂůůǇ ƐŝŐŶŝĨŝĐĂŶƚ ďǇ Ă ůŽĐĂů ŐŽǀĞƌŶŵĞŶƚ ƉƵƌƐƵĂŶƚ ƚŽ Ă ůŽĐĂů ŽƌĚŝŶĂŶĐĞ Žƌ ƌĞƐŽůƵƚŝŽŶ͘
^ƵďĚŝǀŝƐŝŽŶ ;ĐͿŽĨWZ^ĞĐƚŝŽŶϱϬϮϰ͘ϭŝƐĂƐĨŽůůŽǁƐ͗
;ĐͿ ƌĞƐŽƵƌĐĞŵĂǇďĞůŝƐƚĞĚĂƐĂŶŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞŝŶƚŚĞĂůŝĨŽƌŶŝĂZĞŐŝƐƚĞƌŝĨŝƚŵĞĞƚƐĂŶǇŽĨƚŚĞ ĨŽůůŽǁŝŶŐEĂƚŝŽŶĂůZĞŐŝƐƚĞƌŽĨ,ŝƐƚŽƌŝĐWůĂĐĞƐĐƌŝƚĞƌŝĂ͗ ;ϭͿ /ƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĞǀĞŶƚƐƚŚĂƚŚĂǀĞŵĂĚĞĂƐŝŐŶŝĨŝĐĂŶƚĐŽŶƚƌŝďƵƚŝŽŶƚŽƚŚĞďƌŽĂĚƉĂƚƚĞƌŶƐŽĨ ĂůŝĨŽƌŶŝĂ͛ƐŚŝƐƚŽƌǇĂŶĚĐƵůƚƵƌĂůŚĞƌŝƚĂŐĞ͘
;ϮͿ /ƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞůŝǀĞƐŽĨƉĞƌƐŽŶƐŝŵƉŽƌƚĂŶƚŝŶŽƵƌƉĂƐƚ͘ ;ϯͿ
ŵďŽĚŝĞƐƚŚĞĚŝƐƚŝŶĐƚŝǀĞĐŚĂƌĂĐƚĞƌŝƐƚŝĐƐŽĨĂƚǇƉĞ͕ƉĞƌŝŽĚ͕ƌĞŐŝŽŶ͕ŽƌŵĞƚŚŽĚŽĨĐŽŶƐƚƌƵĐƚŝŽŶ͕ ŽƌƌĞƉƌĞƐĞŶƚƐƚŚĞǁŽƌŬŽĨĂŶŝŵƉŽƌƚĂŶƚĐƌĞĂƚŝǀĞŝŶĚŝǀŝĚƵĂů͕ŽƌƉŽƐƐĞƐƐĞƐŚŝŐŚĂƌƚŝƐƚŝĐǀĂůƵĞƐ͘ ;ϰͿ ,ĂƐǇŝĞůĚĞĚ͕ŽƌŵĂǇďĞůŝŬĞůǇƚŽǇŝĞůĚ͕ŝŶĨŽƌŵĂƚŝŽŶŝŵƉŽƌƚĂŶƚŝŶƉƌĞŚŝƐƚŽƌǇŽƌŚŝƐƚŽƌǇ͘ 193
(QYLURQPHQWDO,PSDFW$QDO\VLV
dŚĞKŶƚĂƌŝŽWůĂŶ
/Z ϳϵ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϴ͘ϭ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
tŽƵůĚƚŚĞƉƌŽũĞĐƚĐĂƵƐĞĂƐƵďƐƚĂŶƚŝĂůĂĚǀĞƌƐĞĐŚĂŶŐĞŝŶƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨĂƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞ͕ ĚĞĨŝŶĞĚŝŶWƵďůŝĐZĞƐŽƵƌĐĞƐŽĚĞƐĞĐƚŝŽŶϮϭϬϳϰĂƐĞŝƚŚĞƌĂƐŝƚĞ͕ĨĞĂƚƵƌĞ͕ƉůĂĐĞ͕ĐƵůƚƵƌĂůůĂŶĚƐĐĂƉĞƚŚĂƚ ŝƐŐĞŽŐƌĂƉŚŝĐĂůůǇĚĞĨŝŶĞĚŝŶƚĞƌŵƐŽĨƚŚĞƐŝǌĞĂŶĚƐĐŽƉĞŽĨƚŚĞůĂŶĚƐĐĂƉĞ͕ƐĂĐƌĞĚƉůĂĐĞ͕ŽƌŽďũĞĐƚǁŝƚŚ ĐƵůƚƵƌĂůǀĂůƵĞƚŽĂĂůŝĨŽƌŶŝĂEĂƚŝǀĞŵĞƌŝĐĂŶƚƌŝďĞ͕ĂŶĚƚŚĂƚŝƐ͗ dŚƌĞƐŚŽůĚ;ĂͿ >ŝƐƚĞĚŽƌĞůŝŐŝďůĞĨŽƌůŝƐƚŝŶŐŝŶƚŚĞĂůŝĨŽƌŶŝĂZĞŐŝƐƚĞƌŽĨ,ŝƐƚŽƌŝĐĂůZĞƐŽƵƌĐĞƐ͕ŽƌŝŶĂůŽĐĂů ƌĞŐŝƐƚĞƌŽĨŚŝƐƚŽƌŝĐĂůƌĞƐŽƵƌĐĞƐĂƐĚĞĨŝŶĞĚŝŶWƵďůŝĐZĞƐŽƵƌĐĞƐŽĚĞƐĞĐƚŝŽŶϱϬϮϬ͘ϭ;ŬͿ͕Žƌ dŚƌĞƐŚŽůĚ;ďͿ ƌĞƐŽƵƌĐĞĚĞƚĞƌŵŝŶĞĚďǇƚŚĞůĞĂĚĂŐĞŶĐǇ͕ŝŶŝƚƐĚŝƐĐƌĞƚŝŽŶĂŶĚƐƵƉƉŽƌƚĞĚďǇƐƵďƐƚĂŶƚŝĂů ĞǀŝĚĞŶĐĞ͕ƚŽďĞ ƐŝŐŶŝĨŝĐĂŶƚƉƵƌƐƵĂŶƚ ƚŽĐƌŝƚĞƌŝĂƐĞƚ ĨŽƌƚŚŝŶ ƐƵďĚŝǀŝƐŝŽŶ ;ĐͿŽĨ WƵďůŝĐ ZĞƐŽƵƌĐĞƐŽĚĞ^ĞĐƚŝŽŶϱϬϮϰ͘ϭ͘/ŶĂƉƉůǇŝŶŐƚŚĞĐƌŝƚĞƌŝĂƐĞƚĨŽƌƚŚŝŶƐƵďĚŝǀŝƐŝŽŶ;ĐͿŽĨ WƵďůŝĐZĞƐŽƵƌĐĞƐŽĚĞ^ĞĐƚŝŽŶϱϬϮϰ͘ϭ͕ƚŚĞůĞĂĚĂŐĞŶĐǇƐŚĂůůĐŽŶƐŝĚĞƌƚŚĞƐŝŐŶŝĨŝĐĂŶĐĞŽĨ ƚŚĞƌĞƐŽƵƌĐĞƚŽĂĂůŝĨŽƌŶŝĂEĂƚŝǀĞŵĞƌŝĐĂŶƚƌŝďĞ͍
ƵůƚƵƌĂůZĞƐŽƵƌĐĞdĞĐŚŶŝĐĂůZĞƉŽƌƚ;ZdZͿǁĂƐĐƌĞĂƚĞĚĨŽƌƚŚĞWƌŽũĞĐƚďǇ^ĂƉƉŚŽƐ ŶǀŝƌŽŶŵĞŶƚĂů͕/ŶĐ͘
ŝŶƵŐƵƐƚϮϬϮϭ͘dŚĞZdZĐƌĞĂƚŝŽŶŝŶĐůƵĚĞĚĂĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐƌĞĐŽƌĚƐƐĞĂƌĐŚĚĞƐĐƌŝďĞĚŝŶ^ĞĐƚŝŽŶϰ͘ϱ ĂďŽǀĞ͕ƌĞĐŽŶŶĂŝƐƐĂŶĐĞͲůĞǀĞůƉĞĚĞƐƚƌŝĂŶĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐƐƵƌǀĞǇ͕ĂŶĚ^ĂĐƌĞĚ>ĂŶĚƐ&ŝůĞ;^>&Ϳ^ĞĂƌĐŚǁŝƚŚ ƚŚĞE,͘dŚĞ ƌĞƐƵůƚŽĨ ƚŚĞ^>& ĐŚĞĐŬ ĐŽŶĚƵĐƚĞĚ ƚŚƌŽƵŐŚ ƚŚĞE, ĨŽƵŶĚ ƚŚĂƚƚŚĞƌĞǁĞƌĞƉŽƚĞŶƚŝĂů ƐĂĐƌĞĚůĂŶĚƐǁŝƚŚŝŶƚŚĞh^'^ϳ͘ϱYƵĂĚƌĂŶŐůĞƚŚĂƚƚŚĞWƌŽũĞĐƚǁĂƐǁŝƚŚŝŶ͘,ŽǁĞǀĞƌ͕ƚŚŝƐĂƌĞĂŝƐĞǆƉĂŶƐŝǀĞ͕ ĂŶĚŝƚǁĂƐĚĞĞŵĞĚƵŶůŝŬĞůǇ ƚŚĂƚĂŶǇƐĂĐƌĞĚůĂŶĚƐǁĞƌĞǁŝƚŚŝŶ ƚŚĞƐƉĞĐŝĨŝĐWƌŽũĞĐƚĂƌĞĂĚƵĞƚŽŝƚƐƐŵĂůů ƐĐĂůĞĂŶĚĚĞǀĞůŽƉĞĚŶĂƚƵƌĞ͘Ϯϲ
ƐƐĞŵďůǇŝůů ;Ϳ ϱϮ͕ ĚŽĞƐŶŽƚ ĂƉƉůǇ ƚŽ ƚŚŝƐ WƌŽũĞĐƚĂƐƚŚĞ Y ĚŽĐƵŵĞŶƚ ŝƐ ĂŶ ĚĚĞŶĚƵŵ ƚŽ ƚŚĞ
KŶƚĂƌŝŽ'W
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ǀŝĚĞŶĐĞĐŽůůĞĐƚĞĚĚƵƌŝŶŐƚŚĞĐƌĞĂƚŝŽŶŽĨ ƚŚĞZdZŝŶĚŝĐĂƚĞĚĂůĂĐŬŽĨ ƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐ͕ƚŚĞƌĞďǇ ŵŝŶŝŵŝǌŝŶŐƉŽƚĞŶƚŝĂůĨŽƌƚŚĞĚŝƐĐŽǀĞƌǇŽĨƉƌĞǀŝŽƵƐůǇƵŶĚŽĐƵŵĞŶƚĞĚĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐǁŝƚŚŝŶƚŚĞWƌŽũĞĐƚ ĂƌĞĂ͘ ,ŽǁĞǀĞƌ͕ ^ƚĂŶĚĂƌĚ ŽŶĚŝƚŝŽŶ EŽ͘ ϭ ĨƌŽŵ WƵďůŝĐ ZĞƐŽƵƌĐĞƐ ŽĚĞ ^ĞĐƚŝŽŶ ϱϬϵϳ͘ϵϴ ǁŽƵůĚ ďĞ ŝŵƉůĞŵĞŶƚĞĚƚŽĞŶƐƵƌĞƚŚĂƚĂŶǇ ƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞĞŶĐŽƵŶƚĞƌĞĚĚƵƌŝŶŐWƌŽũĞĐƚĚĞǀĞůŽƉŵĞŶƚǁŽƵůĚ ďĞŚĂŶĚůĞĚĐŽƌƌĞĐƚůǇĂŶĚƌĞƐƉĞĐƚĨƵůůǇ͘ĂƐĞĚŽŶƚŚĞĂďŽǀĞ͕ĂůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌ͘ DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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EŽ ŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐĂƌĞ ƉƌŽƉŽƐĞĚ ǁŝƚŚŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z͘,ŽǁĞǀĞƌ͕ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ WƵďůŝĐ
ZĞƐŽƵƌĐĞƐŽĚĞ^ĞĐƚŝŽŶϱϬϵϳ͘ϵϴ;^ƚĂŶĚĂƌĚŽŶĚŝƚŝŽŶEŽ͘ϭƐŚŽǁŶďĞůŽǁͿŝƐƉƌŽƉŽƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W

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ŽŶĐůƵƐŝŽŶ
EŽŶĞǁŝŵƉĂĐƚƌĞůĂƚĞĚƚŽƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐǁŽƵůĚŽĐĐƵƌ͘ Ϯϲ^ĂƉƉŚŽƐ
ŶǀŝƌŽŶŵĞŶƚĂů͕/ŶĐ͘;ϮϬϮϭͿ͘ϭϵϰϴ^͘ŽŶsŝĞǁǀĞŶƵĞ͕KŶƚĂƌŝŽ͕ĂůŝĨŽƌŶŝĂ ƵůƚƵƌĂů ZĞƐŽƵƌĐĞƐdĞĐŚŶŝĐĂů ZĞƉŽƌƚ͘WĂŐĞϮϱ͘ Ϯϳ/ďŝĚWĂŐĞϮϲ͘ 194
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
KǀĞƌĂůůdƌŝďĂůƵůƚƵƌĂůZĞƐŽƵƌĐĞƐ/ŵƉĂĐƚƐŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ƚĂƚƵƚĞ^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚ
ďǇƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞŝŵƉĂĐƚƐǁŝƚŚƌĞƐƉĞĐƚƚŽƚƌŝďĂůĐƵůƚƵƌĂůƌĞƐŽƵƌĐĞƐ͘ dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂŶ^
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195
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϭϵ
ŶĞƌŐǇ
dŚĞƌĞǀŝƐĞĚ
Y'ƵŝĚĞůŝŶĞƐŝŶĐůƵĚĞĂŶĞǁƐĞƉĂƌĂƚĞĚŝƐĐƵƐƐŝŽŶĨŽƌĞŶĞƌŐǇƌĞƐŽƵƌĐĞƐ͘dŚŝƐƐĞĐƚŝŽŶďƌŝĞĨůǇ ĞǆĂŵŝŶĞƐƉŽƚĞŶƚŝĂůŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽĞŶĞƌŐǇƌĞƐŽƵƌĐĞƐƚŚĂƚĐŽƵůĚ ƌĞƐƵůƚĨƌŽŵ ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨ ƚŚĞ WƌŽũĞĐƚ͘
dŚƌĞƐŚŽůĚ;ĂͿ ZĞƐƵůƚŝŶƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚĚƵĞƚŽǁĂƐƚĞĨƵů͕ŝŶĞĨĨŝĐŝĞŶƚ͕Žƌ ƵŶŶĞĐĞƐƐĂƌǇ ĐŽŶƐƵŵƉƚŝŽŶ ŽĨ ĞŶĞƌŐǇ ƌĞƐŽƵƌĐĞƐ͕ ĚƵƌŝŶŐ ƉƌŽũĞĐƚ ĐŽŶƐƚƌƵĐƚŝŽŶ Žƌ ŽƉĞƌĂƚŝŽŶ͍
dŚƌĞƐŚŽůĚ;ďͿ ŽŶĨůŝĐƚǁŝƚŚŽƌŽďƐƚƌƵĐƚĂƐƚĂƚĞŽƌůŽĐĂůƉůĂŶĨŽƌƌĞŶĞǁĂďůĞĞŶĞƌŐǇŽƌĞŶĞƌŐǇĞĨĨŝĐŝĞŶĐǇ͍

ŶĞƌŐǇƵƐĂŐĞǁĂƐĂŶĂůǇǌĞĚŝŶƚŚĞKŶƚĂƌŝŽWůĂŶ
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ǁĞůů͕ĐŽŶƐƚƌƵĐƚŝŽŶĂŶĚ ŽƉĞƌĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚǁŽƵůĚ ďĞ ƌĞƋƵŝƌĞĚƚŽĐŽŵƉůǇ ǁŝƚŚĂůůƌĞůĞǀĂŶƚ&ĞĚĞƌĂů͕ ^ƚĂƚĞ͕ĂŶĚůŽĐĂůƌĞŐƵůĂƚŝŽŶƐŝŶǀŽůǀŝŶŐĞŶĞƌŐǇƵƐĂŐĞ͕ŝŶĐůƵĚŝŶŐƚŚĞ͘ dŚĞWƌŽũĞĐƚŝƐŶŽƚĂŶƚŝĐŝƉĂƚĞĚƚŽƌĞƐƵůƚŝŶĂŶŝŵƉĂĐƚŽŶ ƚŚĞĞŶǀŝƌŽŶŵĞŶƚĚƵĞƚŽǁĂƐƚĞĨƵů͕ŝŶĞĨĨŝĐŝĞŶƚ͕Žƌ ƵŶŶĞĐĞƐƐĂƌǇĐŽŶƐƵŵƉƚŝŽŶŽĨ ĞŶĞƌŐǇƌĞƐŽƵƌĐĞƐ͘ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚǁŽƵůĚŽĐĐƵƌĨƌŽŵ ĞŶĞƌŐǇ ĐŽŶƐƵŵƉƚŝŽŶĨƌŽŵƚŚĞWƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶ͘
DŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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ŽŶĐůƵƐŝŽŶ
EŽŶĞǁŽƌŵŽƌĞƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚĨƌŽŵĞŶĞƌŐǇĐŽŶƐƵŵƉƚŝŽŶǁŽƵůĚŽĐĐƵƌ͘ KǀĞƌĂůů
ŶĞƌŐǇ/ŵƉĂĐƚŽŶĐůƵƐŝŽŶ
tŝƚŚƌĞŐĂƌĚƚŽ
Y^ĞĐƚŝŽŶϮϭϭϲϲĂŶĚ
Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮ;ĂͿ͕ƚŚĞĐŚĂŶŐĞƐƉƌŽƉŽƐĞĚďǇƚŚĞ WƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁŝŵƉĂĐƚƐ͕ŽƌŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƚŚĞƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚŝŵƉĂĐƚƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽĞŶĞƌŐǇ͘dŚĞƌĞĨŽƌĞ͕ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϰ͘ϮϬ tŝůĚĨŝƌĞ
dŚĞƌĞǀŝƐĞĚ
Y'ƵŝĚĞůŝŶĞƐŝŶĐůƵĚĞĂŶĞǁƐĞƉĂƌĂƚĞĚŝƐĐƵƐƐŝŽŶĨŽƌtŝůĚĨŝƌĞŚĂǌĂƌĚƐ͘dŚŝƐƐĞĐƚŝŽŶďƌŝĞĨůǇ ĞǆĂŵŝŶĞƐƉŽƚĞŶƚŝĂů ŝŵƉĂĐƚƐƌĞůĂƚĞĚƚŽ ǁŝůĚĨŝƌĞ ŚĂǌĂƌĚƐƚŚĂƚ ĐŽƵůĚ ƌĞƐƵůƚ ĨƌŽŵ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞ WƌŽũĞĐƚ͘
ϰ͘ϮϬ͘ϭ ŶĂůǇƐŝƐŽĨWƌŽƉŽƐĞĚWƌŽũĞĐƚ
dŚƌĞƐŚŽůĚ;ĂͿ ^ƵďƐƚĂŶƚŝĂůůǇŝŵƉĂŝƌ ĂŶĂĚŽƉƚĞĚĞŵĞƌŐĞŶĐǇƌĞƐƉŽŶƐĞƉůĂŶŽƌĞŵĞƌŐĞŶĐǇĞǀĂĐƵĂƚŝŽŶ ƉůĂŶ͍
dŚƌĞƐŚŽůĚ;ďͿ ƵĞƚŽƐůŽƉĞ͕ƉƌĞǀĂŝůŝŶŐǁŝŶĚƐ͕ĂŶĚŽƚŚĞƌĨĂĐƚŽƌƐ͕ĞǆĂĐĞƌďĂƚĞǁŝůĚĨŝƌĞƌŝƐŬƐ͕ĂŶĚƚŚĞƌĞďǇ ĞǆƉŽƐĞ ƉƌŽũĞĐƚ ŽĐĐƵƉĂŶƚƐ ƚŽ ƉŽůůƵƚĂŶƚ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐ ĨƌŽŵ Ă ǁŝůĚĨŝƌĞ Žƌ ƚŚĞ ƵŶĐŽŶƚƌŽůůĞĚƐƉƌĞĂĚŽĨĂǁŝůĚĨŝƌĞ͍
dŚƌĞƐŚŽůĚ;ĐͿ ZĞƋƵŝƌĞƚŚĞŝŶƐƚĂůůĂƚŝŽŶŽƌŵĂŝŶƚĞŶĂŶĐĞŽĨĂƐƐŽĐŝĂƚĞĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞ;ƐƵĐŚĂƐƌŽĂĚƐ͕ĨƵĞů ďƌĞĂŬƐ͕ĞŵĞƌŐĞŶĐǇǁĂƚĞƌƐŽƵƌĐĞƐ͕ƉŽǁĞƌůŝŶĞƐŽƌŽƚŚĞƌƵƚŝůŝƚŝĞƐͿƚŚĂƚŵĂǇĞǆĂĐĞƌďĂƚĞ ĨŝƌĞƌŝƐŬŽƌƚŚĂƚŵĂǇƌĞƐƵůƚŝŶƚĞŵƉŽƌĂƌǇŽƌŽŶŐŽŝŶŐŝŵƉĂĐƚƐƚŽƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͍ dŚƌĞƐŚŽůĚ;ĚͿ
ǆƉŽƐĞƉĞŽƉůĞŽƌƐƚƌƵĐƚƵƌĞƐƚŽƐŝŐŶŝĨŝĐĂŶƚƌŝƐŬƐ͕ŝŶĐůƵĚŝŶŐĚŽǁŶƐůŽƉĞŽƌĚŽǁŶƐƚƌĞĂŵ ĨůŽŽĚŝŶŐŽƌ ůĂŶĚƐůŝĚĞƐ͕ĂƐ Ă ƌĞƐƵůƚ ŽĨ ƌƵŶŽĨĨ͕ƉŽƐƚͲĨŝƌĞƐůŽƉĞ ŝŶƐƚĂďŝůŝƚǇ͕Žƌ ĚƌĂŝŶĂŐĞ ĐŚĂŶŐĞƐ͍
dŚĞKŶƚĂƌŝŽ'W
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DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐĨƌŽŵƚŚĞKŶƚĂƌŝŽ'W
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ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
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/ZƐĂŶĚEĞŐĂƚŝǀĞĞĐůĂƌĂƚŝŽŶƐ
;ĂͿ tŚĞŶĂŶ
/ZŚĂƐďĞĞŶĐĞƌƚŝĨŝĞĚŽƌĂŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶĂĚŽƉƚĞĚĨŽƌĂƉƌŽũĞĐƚ͕ŶŽ ƐƵďƐĞƋƵĞŶƚ

/Z ƐŚĂůů ďĞ ƉƌĞƉĂƌĞĚ ĨŽƌ ƚŚĂƚ WƌŽũĞĐƚ ƵŶůĞƐƐ ƚŚĞ ůĞĂĚ ĂŐĞŶĐǇ ĚĞƚĞƌŵŝŶĞƐ͕ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ƐƵďƐƚĂŶƚŝĂůĞǀŝĚĞŶĐĞŝŶůŝŐŚƚŽĨƚŚĞǁŚŽůĞƌĞĐŽƌĚ͕ŽŶĞŽƌŵŽƌĞŽĨƚŚĞĨŽůůŽǁŝŶŐ͗ ;ϭͿ ^ƵďƐƚĂŶƚŝĂůĐŚĂŶŐĞƐĂƌĞ ƉƌŽƉŽƐĞĚ ŝŶ ƚŚĞ WƌŽũĞĐƚǁŚŝĐŚ ǁŝůů ƌĞƋƵŝƌĞŵĂũŽƌ ƌĞǀŝƐŝŽŶƐŽĨ ƚŚĞ ƉƌĞǀŝŽƵƐ
/ZŽƌŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶĚƵĞƚŽƚŚĞŝŶǀŽůǀĞŵĞŶƚŽĨŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂů ĞĨĨĞĐƚƐŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞƐĞǀĞƌŝƚǇŽĨƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐ͘ dŚĞŝƚǇƉƌŽƉŽƐĞƐƚŽŝŵƉůĞŵĞŶƚƚŚĞWƌŽũĞĐƚǁŝƚŚŝŶƚŚĞĐŽŶƚĞǆƚŽĨƚŚĞKŶƚĂƌŝŽ'W /Z͕ĂƐĚĞƐĐƌŝďĞĚŝŶƚŚŝƐ
ĚĚĞŶĚƵŵ͘ƐĚŝƐĐƵƐƐĞĚŝŶƚŚĞ
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚŶĂůǇƐŝƐƐĞĐƚŝŽŶŽĨƚŚŝƐĚĚĞŶĚƵŵ͕ŶŽŶĞǁŽƌŵŽƌĞ ƐĞǀĞƌĞƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐďĞǇŽŶĚǁŚĂƚǁĂƐĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /ZǁŽƵůĚŽĐĐƵƌ͘
;ϮͿ ^ƵďƐƚĂŶƚŝĂů ĐŚĂŶŐĞƐŽĐĐƵƌ ǁŝƚŚ ƌĞƐƉĞĐƚ ƚŽ ƚŚĞ ĐŝƌĐƵŵƐƚĂŶĐĞƐƵŶĚĞƌ ǁŚŝĐŚ ƚŚĞ ƉƌŽũĞĐƚ ŝƐ ƵŶĚĞƌƚĂŬĞŶǁŚŝĐŚǁŝůůƌĞƋƵŝƌĞŵĂũŽƌƌĞǀŝƐŝŽŶƐŽĨƚŚĞƉƌĞǀŝŽƵƐ /ZŽƌŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶĚƵĞ
ƚŽƚŚĞŝŶǀŽůǀĞŵĞŶƚ ŽĨŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐŽƌĂƐƵďƐƚĂŶƚŝĂůŝŶĐƌĞĂƐĞŝŶƚŚĞ ƐĞǀĞƌŝƚǇŽĨƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐ͘ ƐĚŽĐƵŵĞŶƚĞĚŚĞƌĞŝŶ͕ŶŽĐŝƌĐƵŵƐƚĂŶĐĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞůŽĐĂƚŝŽŶ͕ƚǇƉĞ͕ƐĞƚƚŝŶŐ͕ŽƌŽƉĞƌĂƚŝŽŶƐŽĨƚŚĞ WƌŽũĞĐƚŚĂǀĞƐƵďƐƚĂŶƚŝǀĞůǇĐŚĂŶŐĞĚďĞǇŽŶĚ ǁŚĂƚǁĂƐĞǀĂůƵĂƚĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /Z͖ĂŶĚŶŽŶĞŽĨƚŚĞ
WƌŽũĞĐƚĞůĞŵĞŶƚƐǁŽƵůĚ ƌĞƐƵůƚŝŶŶĞǁŽƌŵŽƌĞƐĞǀĞƌĞƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐƚŚĂŶƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ͘EŽŵĂũŽƌƌĞǀŝƐŝŽŶƐƚŽƚŚĞKŶƚĂƌŝŽ'W
/ZĂƌĞƌĞƋƵŝƌĞĚ͘
;ϯͿ EĞǁŝŶĨŽƌŵĂƚŝŽŶŽĨƐƵďƐƚĂŶƚŝĂůŝŵƉŽƌƚĂŶĐĞ͕ǁŚŝĐŚǁĂƐŶŽƚŬŶŽǁŶĂŶĚĐŽƵůĚŶŽƚŚĂǀĞďĞĞŶ ŬŶŽǁŶǁŝƚŚƚŚĞĞǆĞƌĐŝƐĞŽĨƌĞĂƐŽŶĂďůĞĚŝůŝŐĞŶĐĞĂƚƚŚĞƚŝŵĞƚŚĞƉƌĞǀŝŽƵƐ /ZǁĂƐĐĞƌƚŝĨŝĞĚĂƐ
ĐŽŵƉůĞƚĞŽƌƚŚĞŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶǁĂƐĂĚŽƉƚĞĚ͕ƐŚŽǁƐĂŶǇŽĨƚŚĞĨŽůůŽǁŝŶŐ͗ ;Ϳ dŚĞƉƌŽũĞĐƚǁŝůůŚĂǀĞŽŶĞŽƌŵŽƌĞƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐŶŽƚĚŝƐĐƵƐƐĞĚŝŶƚŚĞ ƉƌĞǀŝŽƵƐ
/ZŽƌŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶ͖
EŽŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐďĞǇŽŶĚƚŚŽƐĞĂĚĚƌĞƐƐĞĚŝŶƚŚĞKŶƚĂƌŝŽ'W /ZǁĞƌĞŝĚĞŶƚŝĨŝĞĚ͘
;Ϳ ^ŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐƉƌĞǀŝŽƵƐůǇĞǆĂŵŝŶĞĚǁŝůůďĞƐƵďƐƚĂŶƚŝĂůůǇŵŽƌĞƐĞǀĞƌĞƚŚĂŶƐŚŽǁŶŝŶ ƚŚĞƉƌĞǀŝŽƵƐ
/Z͖
^ŝŐŶŝĨŝĐĂŶƚWƌŽũĞĐƚͲƌĞůĂƚĞĚĞĨĨĞĐƚƐƉƌĞǀŝŽƵƐůǇĞǆĂŵŝŶĞĚǁŽƵůĚŶŽƚďĞŵŽƌĞƐĞǀĞƌĞƚŚĂŶǁĞƌĞĚŝƐĐůŽƐĞĚŝŶ ƚŚĞKŶƚĂƌŝŽ'W
/ZĂƐĂƌĞƐƵůƚŽĨƚŚĞWƌŽũĞĐƚ͘/ŵƉĂĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂůůĞŶǀŝƌŽŶŵĞŶƚĂůƌĞƐŽƵƌĐĞĂƌĞĂƐ ǁŽƵůĚďĞƚŚĞƐĂŵĞĂƐŽƌůĞƐƐƚŚĂŶĚŝƐĐůŽƐĞĚŝŶƚŚĞĂĚŽƉƚĞĚKŶƚĂƌŝŽ'W /Z͘/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚ
ǁŝƚŚŝŶƚŚĞĐŽŶƚĞǆƚŽĨƚŚĞKŶƚĂƌŝŽ'WǁŽƵůĚŶŽƚƐƵďƐƚĂŶƚŝĂůůǇŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇŽĨƉƌĞǀŝŽƵƐůǇŝĚĞŶƚŝĨŝĞĚ ŝŵƉĂĐƚƐ͘
200
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/Z ϴϲ ŽŶsŝĞǁWƌŽũĞĐƚ
ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
;Ϳ DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐƉƌĞǀŝŽƵƐůǇĨŽƵŶĚ ŶŽƚƚŽďĞĨĞĂƐŝďůĞǁŽƵůĚ ŝŶĨĂĐƚďĞ ĨĞĂƐŝďůĞ͕ĂŶĚǁŽƵůĚƐƵďƐƚĂŶƚŝĂůůǇƌĞĚƵĐĞŽŶĞŽƌŵŽƌĞƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐŽĨƚŚĞƉƌŽũĞĐƚ͕ďƵƚ ƚŚĞƉƌŽũĞĐƚƉƌŽƉŽŶĞŶƚƐĚĞĐůŝŶĞƚŽĂĚŽƉƚƚŚĞŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞŽƌĂůƚĞƌŶĂƚŝǀĞ͖Žƌ EŽŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐǁĞƌĞĨŽƵŶĚŝŶĨĞĂƐŝďůĞŝŶƚŚĞĐĞƌƚŝĨŝĞĚKŶƚĂƌŝŽ'W /Z͘
;Ϳ DŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐǁŚŝĐŚĂƌĞĐŽŶƐŝĚĞƌĂďůǇĚŝĨĨĞƌĞŶƚĨƌŽŵƚŚŽƐĞĂŶĂůǇǌĞĚ ŝŶ ƚŚĞ ƉƌĞǀŝŽƵƐ
/ZǁŽƵůĚ ƐƵďƐƚĂŶƚŝĂůůǇƌĞĚƵĐĞ ŽŶĞ ŽƌŵŽƌĞ ƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐŽŶ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ͕ ďƵƚ ƚŚĞ ƉƌŽũĞĐƚƉƌŽƉŽŶĞŶƚƐ ĚĞĐůŝŶĞ ƚŽ ĂĚŽƉƚƚŚĞŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞŽƌ ĂůƚĞƌŶĂƚŝǀĞ͘
EŽ ŽƚŚĞƌŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌ ĨĞĂƐŝďůĞ ĂůƚĞƌŶĂƚŝǀĞƐŚĂǀĞ ďĞĞŶ ŝĚĞŶƚŝĨŝĞĚ ƚŚĂƚ ǁŽƵůĚ ƐƵďƐƚĂŶƚŝĂůůǇ ƌĞĚƵĐĞƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƐ͘
;ďͿ /ĨĐŚĂŶŐĞƐƚŽ ĂƉƌŽũĞĐƚŽƌ ŝƚƐĐŝƌĐƵŵƐƚĂŶĐĞƐŽĐĐƵƌŽƌ ŶĞǁŝŶĨŽƌŵĂƚŝŽŶ ďĞĐŽŵĞƐĂǀĂŝůĂďůĞĂĨƚĞƌ ĂĚŽƉƚŝŽŶ ŽĨ ĂŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶ͕ƚŚĞůĞĂĚĂŐĞŶĐǇƐŚĂůůƉƌĞƉĂƌĞĂƐƵďƐĞƋƵĞŶƚ /Z ŝĨƌĞƋƵŝƌĞĚ
ƵŶĚĞƌ ƐƵďƐĞĐƚŝŽŶ ;ĂͿ͘ KƚŚĞƌǁŝƐĞ͕ ƚŚĞ ůĞĂĚ ĂŐĞŶĐǇ ƐŚĂůů ĚĞƚĞƌŵŝŶĞ ǁŚĞƚŚĞƌ ƚŽ ƉƌĞƉĂƌĞ Ă ƐƵďƐĞƋƵĞŶƚŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶ͕ĂŶĂĚĚĞŶĚƵŵ͕ŽƌŶŽĨƵƌƚŚĞƌĚŽĐƵŵĞŶƚĂƚŝŽŶ͘ ^ƵďƐĞƋƵĞŶƚ ƚŽ ĐĞƌƚŝĨŝĐĂƚŝŽŶ ŽĨ ƚŚĞ KŶƚĂƌŝŽ 'W
/ZŝŶ :ƵŶĞ ϮϬϬϵ͕ ĂĚĚŝƚŝŽŶĂů ƚĞĐŚŶŝĐĂů ĂŶĂůǇƐĞƐ ǁĞƌĞ ƉĞƌĨŽƌŵĞĚĨŽƌƚŚĞWƌŽũĞĐƚĂŶĚĂƌĞƚŚĞƐƵďũĞĐƚŽĨƚŚŝƐĚĚĞŶĚƵŵ͘ĂƐĞĚŽŶƚŚĞĂŶĂůǇƐŝƐŝŶƚŚŝƐĚŽĐƵŵĞŶƚ͕ ƚŚĞWƌŽũĞĐƚǁŽƵůĚŶŽƚƌĞƐƵůƚŝŶĂŶǇŶĞǁƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐŶŽƌǁŽƵůĚŝƚŝŶĐƌĞĂƐĞƚŚĞƐĞǀĞƌŝƚǇ ŽĨ ƐŝŐŶŝĨŝĐĂŶƚĞĨĨĞĐƚƐƉƌĞǀŝŽƵƐůǇ ŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ KŶƚĂƌŝŽ 'W /Z͘EŽŶĞ ŽĨ ƚŚĞ ĐŽŶĚŝƚŝŽŶƐ ůŝƐƚĞĚ ƵŶĚĞƌ
ƐƵďƐĞĐƚŝŽŶ;ĂͿǁŽƵůĚŽĐĐƵƌƚŚĂƚǁŽƵůĚƌĞƋƵŝƌĞƉƌĞƉĂƌĂƚŝŽŶŽĨĂƐƵďƐĞƋƵĞŶƚ /Z͘
;ĐͿ KŶĐĞĂƉƌŽũĞĐƚŚĂƐďĞĞŶĂƉƉƌŽǀĞĚ͕ƚŚĞůĞĂĚĂŐĞŶĐǇ͛ƐƌŽůĞŝŶƉƌŽũĞĐƚĂƉƉƌŽǀĂůŝƐĐŽŵƉůĞƚĞĚ͕ƵŶůĞƐƐ ĨƵƌƚŚĞƌĚŝƐĐƌĞƚŝŽŶĂƌǇĂƉƉƌŽǀĂůŽŶƚŚĂƚƉƌŽũĞĐƚŝƐƌĞƋƵŝƌĞĚ͘/ŶĨŽƌŵĂƚŝŽŶĂƉƉĞĂƌŝŶŐĂĨƚĞƌĂŶĂƉƉƌŽǀĂů ĚŽĞƐŶŽƚƌĞƋƵŝƌĞƌĞŽƉĞŶŝŶŐŽĨƚŚĂƚĂƉƉƌŽǀĂů͘/ĨĂĨƚĞƌƚŚĞƉƌŽũĞĐƚŝƐĂƉƉƌŽǀĞĚ͕ĂŶǇŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐ ĚĞƐĐƌŝďĞĚŝŶƐƵďƐĞĐƚŝŽŶ;ĂͿŽĐĐƵƌƐ͕ĂƐƵďƐĞƋƵĞŶƚ
/ZŽƌŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶƐŚĂůůŽŶůǇďĞƉƌĞƉĂƌĞĚ
ďǇƚŚĞƉƵďůŝĐĂŐĞŶĐǇǁŚŝĐŚŐƌĂŶƚƐƚŚĞŶĞǆƚĚŝƐĐƌĞƚŝŽŶĂƌǇĂƉƉƌŽǀĂůĨŽƌƚŚĞƉƌŽũĞĐƚ͕ŝĨĂŶǇ͘/ŶƚŚŝƐ ƐŝƚƵĂƚŝŽŶ͕ ŶŽ ŽƚŚĞƌ ZĞƐƉŽŶƐŝďůĞ ŐĞŶĐǇ ƐŚĂůů ŐƌĂŶƚ ĂŶ ĂƉƉƌŽǀĂů ĨŽƌ ƚŚĞ ƉƌŽũĞĐƚ ƵŶƚŝů ƚŚĞ ƐƵďƐĞƋƵĞŶƚ
/ZŚĂƐďĞĞŶĐĞƌƚŝĨŝĞĚŽƌƐƵďƐĞƋƵĞŶƚŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶĂĚŽƉƚĞĚ͘ EŽŶĞŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐůŝƐƚĞĚŝŶƐƵďƐĞĐƚŝŽŶ;ĂͿǁŽƵůĚŽĐĐƵƌĂƐĂƌĞƐƵůƚŽĨƚŚĞWƌŽũĞĐƚ͘EŽ^ /ZŝƐƌĞƋƵŝƌĞĚ͘

Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϰവĚĚĞŶĚƵŵƚŽĂŶ
/ZŽƌEĞŐĂƚŝǀĞĞĐůĂƌĂƚŝŽŶ
;ĂͿ dŚĞůĞĂĚĂŐĞŶĐǇŽƌƌĞƐƉŽŶƐŝďůĞĂŐĞŶĐǇƐŚĂůůƉƌĞƉĂƌĞĂŶĂĚĚĞŶĚƵŵƚŽĂƉƌĞǀŝŽƵƐůǇĐĞƌƚŝĨŝĞĚ /ZŝĨ
ƐŽŵĞĐŚĂŶŐĞƐŽƌĂĚĚŝƚŝŽŶƐĂƌĞŶĞĐĞƐƐĂƌǇ͕ďƵƚŶŽŶĞŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐĚĞƐĐƌŝďĞĚŝŶ^ĞĐƚŝŽŶϭϱϭϲϮ ĐĂůůŝŶŐĨŽƌƉƌĞƉĂƌĂƚŝŽŶŽĨĂƐƵďƐĞƋƵĞŶƚ
/ZŚĂǀĞŽĐĐƵƌƌĞĚ͘
ƐĚĞƐĐƌŝďĞĚĂďŽǀĞ͕ŶŽŶĞŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐĚĞƐĐƌŝďĞĚŝŶƚŚĞ Y'ƵŝĚĞůŝŶĞƐ^ĞĐƚŝŽŶϭϱϭϲϮĐĂůůŝŶŐĨŽƌƚŚĞ
ƉƌĞƉĂƌĂƚŝŽŶŽĨĂ^
/ZŚĂǀĞŽĐĐƵƌƌĞĚ͘
;ďͿ Ŷ ĂĚĚĞŶĚƵŵ ƚŽ ĂŶ ĂĚŽƉƚĞĚ ŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶŵĂǇ ďĞ ƉƌĞƉĂƌĞĚ ŝĨ ŽŶůǇ ŵŝŶŽƌ ƚĞĐŚŶŝĐĂů ĐŚĂŶŐĞƐŽƌĂĚĚŝƚŝŽŶƐĂƌĞŶĞĐĞƐƐĂƌǇŽƌŶŽŶĞŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐĚĞƐĐƌŝďĞĚŝŶ^ĞĐƚŝŽŶϭϱϭϲϮĐĂůůŝŶŐ ĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨĂƐƵďƐĞƋƵĞŶƚ
/ZŽƌŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶŚĂǀĞŽĐĐƵƌƌĞĚ͘
201
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
EŽŶĞŽĨƚŚĞĐŽŶĚŝƚŝŽŶƐĚĞƐĐƌŝďĞĚŝŶ^ĞĐƚŝŽŶϭϱϭϲϮĐĂůůŝŶŐĨŽƌƉƌĞƉĂƌĂƚŝŽŶŽĨĂƐƵďƐĞƋƵĞŶƚ /ZǁŽƵůĚŽĐĐƵƌ
ĂƐĂƌĞƐƵůƚŽĨƚŚĞWƌŽũĞĐƚ͘dŚĞƌĞĨŽƌĞ͕ĂŶĂĚĚĞŶĚƵŵƚŽƚŚĞĐĞƌƚŝĨŝĞĚKŶƚĂƌŝŽ'W /ZŝƐƚŚĞĂƉƉƌŽƉƌŝĂƚĞ
Y
ĚŽĐƵŵĞŶƚĨŽƌƚŚĞWƌŽũĞĐƚ͘
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/ZŽƌĂĚŽƉƚĞĚŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶ͘
dŚŝƐĚĚĞŶĚƵŵ ǁŝůůďĞĂƚƚĂĐŚĞĚƚŽƚŚĞKŶƚĂƌŝŽ'W
/ZĂŶĚŵĂŝŶƚĂŝŶĞĚŝŶƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝǀĞƌĞĐŽƌĚĨŝůĞƐ
ĂƚƚŚĞŝƚǇ͘
;ĚͿ dŚĞ ĚĞĐŝƐŝŽŶͲŵĂŬŝŶŐ ďŽĚǇ ƐŚĂůůĐŽŶƐŝĚĞƌ ƚŚĞ ĂĚĚĞŶĚƵŵ ǁŝƚŚ ƚŚĞ KŶƚĂƌŝŽ 'W /ZŽƌ ĂĚŽƉƚĞĚ
ŶĞŐĂƚŝǀĞĚĞĐůĂƌĂƚŝŽŶƉƌŝŽƌƚŽŵĂŬŝŶŐĂĚĞĐŝƐŝŽŶŽŶƚŚĞƉƌŽũĞĐƚ͘ dŚĞŝƚǇǁŝůůĐŽŶƐŝĚĞƌƚŚŝƐĚĚĞŶĚƵŵǁŝƚŚƚŚĞKŶƚĂƌŝŽ'W /ZƉƌŝŽƌƚŽŵĂŬŝŶŐĂĚĞĐŝƐŝŽŶŽŶƚŚĞWƌŽũĞĐƚ͘
;ĞͿ ďƌŝĞĨĞǆƉůĂŶĂƚŝŽŶŽĨ ƚŚĞĚĞĐŝƐŝŽŶ ŶŽƚƚŽƉƌĞƉĂƌĞĂƐƵďƐĞƋƵĞŶƚ /ZƉƵƌƐƵĂŶƚƚŽ ^ĞĐƚŝŽŶϭϱϭϲϮ
ƐŚŽƵůĚďĞŝŶĐůƵĚĞĚŝŶĂŶĂĚĚĞŶĚƵŵƚŽĂŶ
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202
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘
203
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
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dŚŝƐĚĚĞŶĚƵŵŚĂƐďĞĞŶƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞ Y^ƚĂƚƵƚĞĂŶĚƚŚĞ
Y
'ƵŝĚĞůŝŶĞƐ ƚŽ ĚŽĐƵŵĞŶƚ ƚŚĞĨŝŶĚŝŶŐ ƚŚĂƚŶŽŶĞ ŽĨ ƚŚĞ ĐŽŶĚŝƚŝŽŶƐ Žƌ ĐŝƌĐƵŵƐƚĂŶĐĞƐƚŚĂƚǁŽƵůĚ ƌĞƋƵŝƌĞ ƉƌĞƉĂƌĂƚŝŽŶŽĨ Ă ^
/Z͕ƉƵƌƐƵĂŶƚƚŽ ^ĞĐƚŝŽŶ ϭϱϭϲϮ ĂŶĚ ^ĞĐƚŝŽŶ ϭϱϭϲϰ ŽĨ ƚŚĞ Y 'ƵŝĚĞůŝŶĞƐ͕ĞǆŝƐƚŝŶ
ĐŽŶŶĞĐƚŝŽŶǁŝƚŚƚŚĞWƌŽũĞĐƚ͘EŽŵĂũŽƌƌĞǀŝƐŝŽŶƐǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽƚŚĞKŶƚĂƌŝŽ'W /ZƉƌĞƉĂƌĞĚĨŽƌƚŚĞ
KŶƚĂƌŝŽ'W ĂƐĂƌĞƐƵůƚŽĨ ƚŚĞWƌŽũĞĐƚ͘EŽ ŶĞǁ ƐŝŐŶŝĨŝĐĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚƐŚĂǀĞďĞĞŶ ŝĚĞŶƚŝĨŝĞĚ͘ ^ŝŶĐĞƚŚĞĐĞƌƚŝĨŝĐĂƚŝŽŶŽĨƚŚĞKŶƚĂƌŝŽ'W
/Z͕ƚŚĞƌĞŚĂƐďĞĞŶŶŽŶĞǁŝŶĨŽƌŵĂƚŝŽŶƐŚŽǁŝŶŐƚŚĂƚŵŝƚŝŐĂƚŝŽŶ ŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐŽŶĐĞĐŽŶƐŝĚĞƌĞĚŝŶĨĞĂƐŝďůĞĂƌĞŶŽǁĨĞĂƐŝďůĞŽƌƐŚŽǁŝŶŐƚŚĂƚƚŚĞƌĞĂƌĞĨĞĂƐŝďůĞ ŶĞǁŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐŽƌĂůƚĞƌŶĂƚŝǀĞƐƐƵďƐƚĂŶƚŝĂůůǇĚŝĨĨĞƌĞŶƚĨƌŽŵƚŚŽƐĞĂŶĂůǇǌĞĚŝŶƚŚĞ /ZƚŚĂƚƚŚĞ
ŝƚǇ ĚĞĐůŝŶĞĚ ƚŽ ĂĚŽƉƚ͘ dŚĞƌĞĨŽƌĞ͕ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ Ă ^ /Z ŝƐ ŶŽƚ ƌĞƋƵŝƌĞĚ ĂŶĚ ƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞ
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ĚŽĐƵŵĞŶƚĨŽƌƚŚĞWƌŽũĞĐƚŝƐƚŚŝƐĚĚĞŶĚƵŵƚŽƚŚĞKŶƚĂƌŝŽ'W /Z͘dŚŝƐĚŽĐƵŵĞŶƚǁŝůůďĞŵĂŝŶƚĂŝŶĞĚŝŶ
ƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝǀĞƌĞĐŽƌĚĨŝůĞƐĂƚƚŚĞŝƚǇ͘

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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
dŚŝƐƉĂŐĞŝŶƚĞŶƚŝŽŶĂůůǇůĞĨƚďůĂŶŬ͘
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dŚĞKŶƚĂƌŝŽWůĂŶ
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ĚĚĞŶĚƵŵƚŽƚŚĞ&ŝŶĂů
ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
ϳ Z
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Z
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^
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&ZW;ϮϬϮϭͿ͘&ŝƌĞ,ĂǌĂƌĚ^ĞǀĞƌŝƚǇŽŶĞsŝĞǁĞƌ͘ŚƚƚƉƐ͗ͬͬĞŐŝƐ͘ĨŝƌĞ͘ĐĂ͘ŐŽǀͬ&,^ͬ ĐĐĞƐƐĞĚƵŐƵƐƚϵ͕ϮϬϮϭ͘
ĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨŽŶƐĞƌǀĂƚŝŽŶ͘ϮϬϮϭ͘DŝŶĞƌĂů>ĂŶĚůĂƐƐŝĨŝĐĂƚŝŽŶ͘ ŚƚƚƉƐ͗ͬͬŵĂƉƐ͘ĐŽŶƐĞƌǀĂƚŝŽŶ͘ĐĂ͘ŐŽǀͬĐŐƐͬŝŶĨŽƌŵĂƚŝŽŶǁĂƌĞŚŽƵƐĞͬŝŶĚĞǆ͘Śƚŵů͍ŵĂƉсŵůĐ ĐĐĞƐƐĞĚƵŐƵƐƚϮϭ͕ϮϬϮϭ͘
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ĂůZĞĐǇĐůĞ͘ϮϬϮϭ͘
ů^ŽďƌĂŶƚĞ>ĂŶĚĨŝůů͘
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ŝƚǇŽĨKŶƚĂƌŝŽ͘ZĞǀ͘ϮϬϮϭ͘ŽŶŝŶŐDĂƉ͘ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽĐĂ͘ŐŽǀͬƐŝƚĞƐͬĚĞĨĂƵůƚͬĨŝůĞƐͬKŶƚĂƌŝŽͲ &ŝůĞƐͬWůĂŶŶŝŶŐͬŽĐƵŵĞŶƚƐͬŽŶŝŶŐйϮϬDĂƉͬŽŶŝŶŐͺϮϬϮϭϬϮϭϮ͘ƉĚĨĐĐĞƐƐĞĚƵŐƵƐƚϮϬϮϭ͘ ŝƚǇŽĨKŶƚĂƌŝŽ͘;ϮϬϭϴͿ͘ŝƚǇŽĨKŶƚĂƌŝŽϮϬϭϴ,ĂǌĂƌĚDŝƚŝŐĂƚŝŽŶWůĂŶ͘WĂŐĞϰͲϭϬϮ͘ZĞƚƌŝĞǀĞĚĨƌŽŵ͗ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ŽŶƚĂƌŝŽĐĂ͘ŐŽǀͬƐŝƚĞƐͬĚĞĨĂƵůƚͬĨŝůĞƐͬKŶƚĂƌŝŽͲ&ŝůĞƐͬ ŵĞƌŐĞŶĐǇͲ
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207
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208
DŝƚŝŐĂƚŝŽŶDŽŶŝƚŽƌŝŶŐĂŶĚZĞƉŽƌƚŝŶŐWƌŽŐƌĂŵ
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ŶǀŝƌŽŶŵĞŶƚĂů/ŵƉĂĐƚZĞƉŽƌƚ
DŝƚŝŐĂƚŝŽŶDĞĂƐƵƌĞƐ ZĞƐƉŽŶƐŝďŝůŝƚǇĨŽƌ /ŵƉůĞŵĞŶƚĂƚŝŽŶ dŝŵŝŶŐ ZĞƐƉŽŶƐŝďŝůŝƚǇĨŽƌ DŽŶŝƚŽƌŝŶŐ DŽŶŝƚŽƌ ;^ŝŐŶĂƚƵƌĞZĞƋƵŝƌĞĚͿ ;ĂƚĞŽĨŽŵƉůŝĂŶĐĞͿ /ZYh>/dzDDϯͲϭ͗dŚĞŝƚǇŽĨKŶƚĂƌŝŽƵŝůĚŝŶŐĞƉĂƌƚŵĞŶƚƐŚĂůů ƌĞƋƵŝƌĞƚŚĂƚĂůůŶĞǁ ĐŽŶƐƚƌƵĐƚŝŽŶ ƉƌŽũĞĐƚƐ ŝŶĐŽƌƉŽƌĂƚĞ ĨĞĂƐŝďůĞŵŝƚŝŐĂƚŝŽŶŵĞĂƐƵƌĞƐƚŽƌĞĚƵĐĞ Ăŝƌ ƋƵĂůŝƚǇ ĞŵŝƐƐŝŽŶƐ͘ WŽƚĞŶƚŝĂů ŵĞĂƐƵƌĞƐ ƐŚĂůů ďĞŝŶĐŽƌƉŽƌĂƚĞĚ ĂƐ ĐŽŶĚŝƚŝŽŶƐ ŽĨ ĂƉƉƌŽǀĂů ĨŽƌ Ă ƉƌŽũĞĐƚ ĂŶĚ ŵĂǇŝŶĐůƵĚĞ͗ x ZĞƋƵŝƌŝŶŐ ĨƵŐŝƚŝǀĞ ĚƵƐƚ ĐŽŶƚƌŽů ŵĞĂƐƵƌĞƐ ƚŚĂƚ ĞǆĐĞĞĚ ^ŽƵƚŚŽĂƐƚŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ͛ƐZƵůĞϰϬϯ͕ƐƵĐŚĂƐ͗ o ZĞƋƵŝƌŝŶŐ ƵƐĞ ŽĨ ŶŽŶƚŽǆŝĐ ƐŽŝů ƐƚĂďŝůŝǌĞƌƐ ƚŽ
ƌĞĚƵĐĞǁŝŶĚĞƌŽƐŝŽŶ͘
o ƉƉůǇŝŶŐǁĂƚĞƌĞǀĞƌǇ ĨŽƵƌ ŚŽƵƌƐ ƚŽĂĐƚŝǀĞ ƐŽŝů
ĚŝƐƚƵƌďŝŶŐĂĐƚŝǀŝƚŝĞƐ͘
o dĂƌƉŝŶŐ ĂŶĚͬŽƌ ŵĂŝŶƚĂŝŶŝŶŐ Ă ŵŝŶŝŵƵŵ ŽĨ Ϯϰ
ŝŶĐŚĞƐŽĨĨƌĞĞďŽĂƌĚŽŶƚƌƵĐŬƐŚĂƵůŝŶŐĚŝƌƚ͕ƐĂŶĚ͕ƐŽŝů͕ŽƌŽƚŚĞƌůŽŽƐĞŵĂƚĞƌŝĂůƐ͘ x hƐŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚƌĂƚĞĚďǇƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ

ŶǀŝƌŽŶŵĞŶƚĂů WƌŽƚĞĐƚŝŽŶ ŐĞŶĐǇ ĂƐ ŚĂǀŝŶŐ dŝĞƌ ϯ ŽƌŚŝŐŚĞƌĞǆŚĂƵƐƚĞŵŝƐƐŝŽŶůŝŵŝƚƐ͘ x
ŶƐƵƌŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚŝƐƉƌŽƉĞƌůǇƐĞƌǀŝĐĞĚĂŶĚ ŵĂŝŶƚĂŝŶĞĚƚŽƚŚĞŵĂŶƵĨĂĐƚƵƌĞƌ͛ƐƐƚĂŶĚĂƌĚƐ͘
x >ŝŵŝƚŝŶŐŶŽŶĞƐƐĞŶƚŝĂůŝĚůŝŶŐŽĨĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚƚŽ ŶŽŵŽƌĞƚŚĂŶĨŝǀĞĐŽŶƐĞĐƵƚŝǀĞŵŝŶƵƚĞƐ͘
x hƐŝŶŐ ^ƵƉĞƌͲŽŵƉůŝĂŶƚ sK ƉĂŝŶƚƐ ĨŽƌ ĐŽĂƚŝŶŐ ŽĨ ĂƌĐŚŝƚĞĐƚƵƌĂůƐƵƌĨĂĐĞƐǁŚĞŶĞǀĞƌƉŽƐƐŝďůĞ͘ůŝƐƚŽĨ^ƵƉĞƌͲŽŵƉůŝĂŶƚ ĂƌĐŚŝƚĞĐƚƵƌĂů ĐŽĂƚŝŶŐ ŵĂŶƵĨĂĐƚƵƌĞƐ ĐĂŶ ďĞĨŽƵŶĚ ŽŶ ƚŚĞ ^ŽƵƚŚ ŽĂƐƚ ŝƌ YƵĂůŝƚǇ DĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ͛Ɛ ǁĞďƐŝƚĞ Ăƚ͗ŚƚƚƉ͗ͬͬǁǁǁ͘ĂƋŵĚ͘ŐŽǀͬƉƌĚĂƐͬďƌŽĐŚƵƌĞƐͬ^ƵƉĞƌͲ ŽŵƉůŝĂŶƚͺ/D͘ƉĚĨ͘
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Bon View Project, Ontario, California

CULTURAL RESOURCES TECHNICAL REPORT

PREPARED FOR:

BON VIEW LAND 10, LLC &
BV INVESTMENTS 10, LLC

AS TENANTS-IN-COMMON
2442 DUPONT DRIVE
IRVINE, CA 92612

PREPARED BY:

SAPPHOS ENVIRONMENTAL, INC.
430 NORTH HALSTEAD STREET
PASADENA, CA 91107

AUGUST 25, 2021

211
Bon View Project, Ontario, California Cultural Resources Technical Report August 25, 2021 Page i

TABLE OF CONTENTS

SECTIONS PAGE
ES EXECUTIVE SUMMARY .................................................................................................... 1

1.0 INTRODUCTION ............................................................................................................. 3

1.1 Goal of the Cultural Resources Technical Report.................................................... 3

1.2 Methods ............................................................................................................... 3

1.3 Scope of Investigation ........................................................................................... 3

2.0. PROJECT DESCRIPTION .................................................................................................. 4

2.1 Project Location .................................................................................................... 4

2.2 Project Description ............................................................................................... 4

3.0. REGULATORY FRAMEWORK .......................................................................................... 5

4.0. HISTORIC CONTEXT ..................................................................................................... 10

4.1 Prehistoric Context .............................................................................................. 10

4.2 Prehistory ........................................................................................................... 10

4.3 Gabrieleno Archaeology and Ethnography ........................................................... 12

4.4 Serrano Archaeology and Ethnography ................................................................ 13

4.5 Cahuilla Archaeology and Ethnography ............................................................... 14

4.6 Historic Context .................................................................................................. 15

5.0. METHODS ..................................................................................................................... 20

5.1 Records Search ................................................................................................... 20

5.2 Literature Review ................................................................................................ 20

5.3 Archaeological Field Survey ................................................................................ 21

6.0. RESULTS ........................................................................................................................ 23

6.1 Summary of Findings........................................................................................... 23

6.2 Cultural Resources .............................................................................................. 23

6.3 Results of the Phase I Archaeological Resources Survey ........................................ 24

6.4 Native American Sacred Sites and Human Remains ............................................. 24

6.5 Impact Analysis ................................................................................................... 24

7.0. CONCLUSION AND RECOMMENDATIONS ................................................................. 25

8.0. REFERENCES .................................................................................................................. 26

TABLES PAGE

6.1-1 Previous Surveys within the Study Area ........................................................................... 23

6.2-1 Resources within the Study Area ..................................................................................... 23 212
Bon View Project, Ontario, California Cultural Resources Technical Report August 25, 2021 Page ii

FIGURES FOLLOWS PAGE

2.1-1 Vicinity Map .................................................................................................................... 4

2.1-2 Project Area Map .............................................................................................................. 4

5.3-1 Overview of Project Area ................................................................................................ 21 213
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 1

EXECUTIVE SUMMARY
The proposed project is located at 1948 S. Bon View Avenue in the City of Ontario (city), within San Bernardino County, California. The proposed project is located within the Ontario U.S.

Geological Survey (USGS) 7.5-minute quadrangle map, on the center of the city. The site is operated as an industrial property.

The project proposes the development of one 175,047-square-foot (sf) building containing 170,547 sf of warehousing space and 4,500 sf of office space split between two floors. The office portion of the building would be located in its southeast corner. The project site has a proposed floor-area ratio (FAR) of 0.54, with a maximum of 0.55 allowed in Industrial land use areas. Project site improvements would also include surface parking, landscaping, and internal drive aisles. Access to the project site would be established through two driveways along the eastern portion of the site connecting to Bon View Avenue.

The purpose of this Cultural Resources Technical Report (CRTR) is to provide the client with a cultural resources assessment for the project such that construction, operation, and maintenance may be undertaken in a manner that avoids known or observed cultural resources afforded consideration pursuant to the California Environmental Quality Act (CEQA) to the maximum extent feasible and practicable. The term cultural resources within this report refers to a historical resource under CEQA, defined as ´a resource listed in, or determined eligible by the State Historical Resources Commission, for listing in the California Register of Historical Resources or a resource included in a local register of historical resources,µ including built and archaeological resources.1 Additionally, this CRTR addresses tribal cultural resources as required by CEQA. Where it is infeasible to avoid impacts, the consideration of mitigation measures and alternatives would be required.

Historical and Archaeological Resources
The consideration of potential impacts was based on an archives and records search; literature review; coordination with the Native American Heritage Commission (NAHC), and a site visit of the project area completed on August 12, 2021.

No (0) previously recorded historical resources or archaeological sites and no (0) previously recorded prehistoric or historic isolates have been identified in the study area. One locally eligible City of Ontario (City) Historic Landmark is located within the proposed project site, and no (0) designated City Landmarks are located within a 0.25-mile radius of the project site. The results of the Sacred Lands File search conducted by the Native American Heritage Commission were negative. No new archaeological resources were identified during the archaeological pedestrian survey.
1 California Environmental Quality Act Statue and Guidelines 2021, Section 15054.5 (a)(1)(2). 214
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 2
Cemeteries and Human Remains
There are no formal cemeteries located within the proposed project area. In addition, there are no known human remains, grave goods, or funerary objects within the proposed project area.

Tribal Cultural Resources
As a result of the request for review of the Sacred Lands File (SLF) from the NAHC, it has been determined that there are no sacred lands recorded on the same 7.5-minute-scale quadrangle (approximately 50 square miles) as the project site.

Recommendations
This CRTR resulted in the determination that the proposed project would result in less than significant impacts to listed or eligible for listing cultural resources from construction, operation, and maintenance of the proposed project.
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SECTION 1.0

INTRODUCTION
The subject property is located at 1948 S. Bon View Avenue, Ontario, San Bernardino County, California. This Cultural Resource Technical Report (CRTR) was prepared to demonstrate compliance with the California Environmental Quality Act (CEQA); specifically, Appendix G of the CEQA Guidelines for historical resources and tribal cultural resources (see Section 2.2, Project Description for full project description).

1.1 GOAL OF THE CULTURAL RESOURCES TECHNICAL REPORT
This CRTR has been prepared to provide a historical and tribal cultural resources assessment for the proposed project such that construction, operation, and maintenance may be undertaken in a manner that avoids known or observed cultural resources afforded consideration pursuant to CEQA to the maximum extent feasible and practicable. This analysis was undertaken to determine if the proposed project would result in significant impacts to cultural resources, requiring the consideration of mitigation measures or alternatives in accordance with CEQA regulations.2

1.2 METHODS
This report was prepared by Sapphos Environmental, Inc. The identification of existing resources and evaluation of potential impacts is based on information gathered from published and unpublished literature, South Central Coastal Information Center (SCCIC) June 2021 record search results, August 2021 Native American Heritage Commission results, California Office of Historic Resources Built Environment Directory, a review of current and historic maps and aerial photographs, and a site visit completed on August 12, 2021, to characterize the existing conditions relative to cultural and tribal cultural resources. In addition, an intensive pedestrian archaeological survey of any unpaved, or non-landscaped areas was performed by a qualified archaeologist on August 12, 2021.

1.3 SCOPE OF INVESTIGATION
The investigation covers the areas required by CEQA including historical resources, archaeological resources, human remains, and tribal cultural resources. Databases were reviewed for the project site and a 0.25-mile buffer.
2 Section 15064.5 (b) CEQA Guidelines.
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1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 4
SECTION 2.0

PROJECT DESCRIPTION

2.1 PROJECT LOCATION
The proposed project is located at 1948 S. Bon View Avenue, Ontario, San Bernardino County, California (Figure 2.1-1, Vicinity Map; Figure 2.1-2, Project Area Map). The property is bounded by E. Francis Avenue to the north; S. Bon View Avenue to the east; E. Cedar Street to the south, and properties on the east side of S. Campus Avenue to the west. The project site is situated in the central portion of the city and is surrounded by commercial and industrial development to the south, north, east, and west.

2.2 PROJECT DESCRIPTION
The project proposes the development of one 175,047-square-foot (sf) building containing 170,547 sf of warehousing space and 4,500 sf of office space split between two floors. The office portion of the building would be located in its southeast corner. The project site has a proposed floor-area ratio (FAR) of 0.54, with a maximum of 0.55 allowed in Industrial land use areas. Project site improvements would also include surface parking, landscaping, and internal drive aisles. Access to the project site would be established through two driveways along the eastern portion of the site connecting to Bon View Avenue. The project is speculative in nature; the end user and their hours of operation are unknown at this time. However, to be conservative, it has been assumed that the building would operate 24 hours per day/7 days per week.

Regional access to the project site is provided via CA-60, approximately 0.48 mile south of the project site with exits at Grove Avenue and Euclid Avenue. Local access to the project site is provided via Bon View Avenue which an 88-foot-wide right-of-way (ROW) collector street that trends in a north-south direction. Project site main ingress and egress driveway would be provided via one 40-foot-wide, and one 30-foot-wide driveway located along the eastern border of the site along Bon View Avenue. The driveways would connect directly to Bon View Avenue and allow full access movement for both vehicles and trucks.

The project would include the provision of 109 standard 9-foot by 18-foot stalls and 21 trailer parking stalls. A project of this size would be required to provide 98 standard stalls and 6 trailer stalls. The project is anticipated to landscape approximately 10.11 percent (32,900 sf) of the project site which is higher the minimum required 10 percent (32,529 sf) as requLUHGE\WKH&LW\·V zoning code.
09 17-
02 59 9
217
FIGURE 2.1-1
Vicinity Map
218
FIGURE 2.1-2
Project Area Map
219
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 5
SECTION 3.0

REGULATORY FRAMEWORK
This section of the report identifies the primary state laws and regulations that govern the conservation and protection of cultural resources that must be considered during the decisionmaking process for projects that have the potential to adversely affect cultural resources.

California Environmental Quality Act
Pursuant to CEQA, a historical resource is a resource listed in, or eligible for listing in, the California Register of Historical Resources (California Register). In addition, resources included in a local register of historic resources or identified as significant in a local survey conducted in accordance with state guidelines are also considered historical resources under CEQA, unless a preponderance of the facts demonstrates otherwise. According to CEQA, the fact that a resource is not listed in or determined eligible for listing in the California Register or is not included in a local register or survey shall not preclude a Lead Agency, as defined by CEQA, from determining that the resource may be a historical resource as defined in California Public Resources Code Section 5024.1.

CEQA applies to archaeological resources when (1) the archaeological resource satisfies the definition of a historical resource or (2) the archaeological resource satisfies the definition of a ´XQLTXHDrchaeological resourFHµ$unique archaeological resource is an archaeological artifact, object, or site that has a high probability of meeting any of the following criteria:

1. The archaeological resource contains information needed to answer important scientific research questions and there is a demonstrable public interest in that information.

2. The archaeological resource has a special and particular quality such as being the oldest of its type or the best available example of its type.

3. The archaeological resource is directly associated with a scientifically recognized important prehistoric or historic event or person.

Appendix G of the CEQA Guidelines3
provides a set of sample questions that guide the evaluation of potential impacts with regard to cultural resources.

Would the proposed project:
(a) Cause a substantial adverse change in the significance of an historical resource as defined in §15064.5?
(b) Cause a substantial adverse change in the significance of an archaeological resource as defined in §15064.5?
3 California Code of Regulations, Title 14, Chapter 3. Amended 6 October 2005. Guidelines for the Implementation of the California Environmental Quality Act, Appendix G.
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1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 6
(c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature?
(d) Disturb any human remains, including those interred outside of formal cemeteries? California Register of Historical Resources
Created in 1992 and implemented in 1998, the California Register LV ´DQ authoritative guide in California to be used by state and local agencies, private groups, and citizens to identify the SWDWH·V historical resources and to indicate what properties are to be protected, to the extent prudent and feasible, from substantial adverse chDQJHµ Certain properties, including those listed in or formally determined eligible for listing in the National Register of Historic Places (National Register) and California Historical Landmarks (CHLs) numbered 770 and higher, are automatically included in the California Register. Other properties recognized under the California Points of Historical Interest program, identified as significant in historic resources surveys, or designated by local landmarks programs may be nominated for inclusion in the California Register. A resource, either an individual property or a contributor to a historic district, may be listed in the California Register if the State Historical Resources Commission determines that it meets one or more of the following criteria, which are modeled on National Register criteria:

Criterion 1: It is associated with events that have made a significant contribution to the broad patterns of CalifoUQLD·s history and cultural heritage.

Criterion 2: It is associated with the lives of persons important in our past.

Criterion 3: It embodies the distinctive characteristics of a type, period, region, or method of construction; represents the work of an important creative individual; or possesses high artistic values.

Criterion 4: It has yielded, or may be likely to yield, information important in history or prehistory.

Resources nominated to the California Register must retain enough of their historic character or appearance to be recognizable as historical resources and to convey the reasons for their significance. It is possible that a resource whose integrity does not satisfy National Register criteria may still be eligible for listing in the California Register. A resource that has lost its historic character or appearance may still have sufficient integrity for the California Register if, under Criterion 4, it maintains the potential to yield significant scientific or historical information or specific data. Resources that have achieved significance within the past 50 years also may be eligible for inclusion in the California Register, provided that enough time has lapsed to obtain a scholarly perspective on the events or individuals associated with the resource.4 4 Office of Historic Preservation. Undated. ´7HFKQLcal Assistance Bulletin 6: California Register and National Register, A Comparison (for purposes of determining eligibility for the &DOLIRUQLD5HJLVWHU µ$YDLlable at:
www.ohp.parks.ca.gov
221
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California Historical Landmarks5
CHLs are buildings, structures, sites, or places that have anthropological, cultural, military, political, architectural, economic, scientific or technical, religious, experimental, or other value and that have been determined to have statewide historical significance by meeting at least one of the criteria listed below. The resource must also be approved for designation by the County Board of Supervisors (or the City or Town Council in whose jurisdiction it is located), be recommended by the State Historical Resources Commission, and be officially designated by the Director of California State Parks. The specific standards in use now were first applied in the designation of CHL No. 770. CHLs No. 770 and above are automatically listed in the California Register. To be eligible for designation as a Landmark, a resource must meet at least one of the following criteria:
x The first, last, only, or most significant of its type in the state or within a large geographic region (Northern, Central, or Southern California) x Associated with an individual or group having a profound influence on the history of California
x A prototype of, or an outstanding example of, a period, style, architectural movement or construction or one of the more notable works or the best surviving work in a region of a pioneer architect, designer, or master builder California Points of Historical Interest6
California Points of Historical Interest are sites, buildings, features, or events that are of local (city or county) significance and have anthropological, cultural, military, political, architectural, economic, scientific or technical, religious, experimental, or other value. Points of Historical Interest designated after December 1997 and recommended by the State Historical Resources Commission are also listed in the California Register. No historical resource may be designated as both a Landmark and a Point. If a Point is later granted status as a Landmark, the Point designation will be retired. In practice, the Point designation program is most often used in localities that do not have a locally enacted cultural heritage or preservation ordinance. To be eligible for designation as a Point of Historical Interest, a resource must meet at least one of the following criteria:
x The first, last, only, or most significant of its type within the local geographic region (city or county)
x Associated with an individual or group having a profound influence on the history of the local area
x A prototype of, or an outstanding example of, a period, style, architectural movement or construction or one of the more notable works or the best surviving work in the local region of a pioneer architect, designer, or master builder 5 Office of Historic Preservation, Department of Parks and Recreation6WDWHRI&DOLIRUQLD´&DOifornia Historical Landmarks Registration ProgUDPVµAvailable at: www.ohp.parks.ca.gov 6 Office of Historic Preservation, Department of Parks and Recreation, State of CalifornLD´&DOLIRrnia Points of Historical Interest RegistrDWLRQ3URJUDPVµ$YDLODEOHat: www.ohp.parks.ca.gov 222
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 8
Native American Heritage Commission, Public Resources Code Sections 5097.9²5097.991 Section 5097.91 of the Public Resources Code established the NAHC, whose duties include the inventory of places of religious or social significance to Native Americans and the identification of known graves and cemeteries of Native Americans on private lands. Under Section 5097.9, a state policy of noninterference with the free expression or exercise of Native American religion was articulated along with a prohibition of severe or irreparable damage to Native American sanctified cemeteries, places of worship, religious or ceremonial sites or sacred shrines located on public property. Section 5097.98 specifies a protocol to be followed when the NAHC receives notification of a discovery of Native American human remains from a county coroner. Section 5097.5 defines as a misdemeanor the unauthorized disturbance or removal of archaeological, historic, or paleontological resources located on public lands.

California Native American Graves Protection and Repatriation Act of 2001 Codified in the California Health and Safety Code Sections 8010²8030, the California Native American Graves Protection and Repatriation Act (Cal NAGPRA) is consistent with the federal NAG35$,QWHQGHGWR´SURYLGHDVHDPOHVV and consistent state policy to ensure that all California Native American human remains and cultural items be treated with dignity and respect,µ &al NAGPRA also encourages and provides a mechanism for the return of remains and cultural items to lineal descendants. Section 8025 established a Repatriation Oversight Commission to oversee this process. The Act also provides a process for non-federally recognized tribes to file claims with agencies and museums for repatriation of human remains and cultural items.

Assembly Bill (AB) 52
AB 52 requires lead agencies to consult with California Native American Tribes that request such consultation prior to the agency·V UHOHDVH of a Notice of Preparation of an Environmental Impact Report or Notice of Intent of a Mitigated Negative Declaration on or after July 1, 2015.

Health and Safety Code, Sections 7050 and 7052
Health and Safety Code, Section 7050.5, declares that, in the event of the discovery of human remains outside a dedicated cemetery, ground disturbance must cease, and the county coroner must be notified. Section 7052 establishes a felony penalty for mutilating, disinterring, or otherwise disturbing human remains, except by relatives.

Penal Code, Section 622.5
Penal Code, Section 622.5, provides misdemeanor penalties for injuring or destroying objects of historic or archaeological interest located on public or private lands but specifically excludes the landowner.

City of Ontario
Section 9-1.2615 established Historic Landmark eligibility criteria as follows:

Historic Landmarks. Historic Landmarks shall include any property designated as an Historic Landmark prior to September 1, 2003 or any Historical Resource designated under this ordinance as an Historic Landmark.
223
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 9
Any Historical Resource may be designated an Historic Landmark by the City Council pursuant to Section 9-1.2620 if:

1. It meets the criteria for listing in the National Register of Historic Places; or

2. It meets the criteria for listing in the California Register of Historic Resources; or

3. It meets one or more of the following criteria:
a. It exemplifies or reflects special elements of the CLW\·VKLVWRU\

b. It is identified with persons or events significant in local, state, or national history;
c. It is representative of the work of a notable builder, designer, architect, or artist; d. It embodies distinguishing architectural characteristics of a style, type, period, or method of construction;
e. It is a noteworthy example of the use of indigenous materials or craftsmanship; f. It embodies elements that represent a significant structural, engineering, or architectural achievement or innovation;
g. It has a unique location, a singular physical characteristic, or is an established and familiar visual feature of a neighborhood, community or the City; or, h. It is one of the few remaining examples in the City, region, state, or nation possessing distinguishing characteristics of an architectural or historical type or specimen.
224
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SECTION 4.0

HISTORIC CONTEXT
This section of the report characterizes the baseline conditions for cultural resources. This section includes information on prehistoric period context, regional ethnography, and regional and local historic context.

4.1 PREHISTORIC CONTEXT
This section of the report characterizes the baseline conditions for cultural resources and historic properties. The current project area lies at the geographic and cultural intersection of three prominent ethnohistoric territorial ranges. These include the Gabrielino, the Serrano, and the Cahuilla. Therefore, this section includes information on prehistoric period context, the three regional ethnographies, and regional and local historic context.

4.2 PREHISTORY
It is generally agreed that human occupation of Southern California began at least 10,000 years before present (BP). The archaeological record indicates that between approximately 10,000 and 6,000 years BP, a predominantly hunting and gathering economy existed, characterized by archaeological sites containing numerous projectile points and the remains of butchered large animals. The most heavily exploited species were likely those species still alive today. Bones of extinct species have been found in the region but, unlike other regions of the continent, are not definitively associated with cultural artifacts in California. Although small animal bones and plant grinding tools are rarely found within archaeological sites of this period, small game and vegetal foods were likely exploited on a widespread basis. A lack of intact stratified cultural deposits from this period suggests small groups practiced high residential mobility during this.

The three major periods of prehistory for the greater Southern California region have been refined by research using radiocarbon dates from archaeological sites in coastal Southern California:7,8 x Millingstone Period (6,000²1,000 B.C., or about 8,000²3,000 years ago) x Intermediate Period (1,000 B.C.²A.D. 650, or 3,000²1,350 years ago) x Late Prehistoric Period (A.D. 650²about A.D. 1800, or 1,350²200 years ago) Around 6,000 years BP, a shift in focus from hunting toward a greater reliance on vegetal resources occurred. Archaeological evidence of this trend consists of a much greater number of milling tools (e.g., metates and manos) for processing seeds and other vegetable matter. This period, known to archaeologists as the Millingstone Period, was a long period of time characterized by small, mobile groups that likely relied on a seasonal round of settlements that included both inland and coastal residential bases. Seeds from sage and grasses, rather than acorns, provided calories and carbohydrates. Faunal remains from sites dating to this period indicate the same animals were still 7 Koerper, Henry C., Roger D0DVRQDQG0DUN/3HWHUVRQ´&RPSOH[Lty, Demography, and Change in Late Holocene OraQJH&RXQW\µ,QCatalysts to Complexity: Late Holocene Societies of the California Coast, ed. M.

Erlandson and Terry L. Jones. Perspectives in California Archaeology. Vol. 6. Los Angeles, CA: University of California, Los Angeles, Institute of Archaeology.
8 Mason, R.D., and M.L. Peterson. 1994. Newport Coast Archaeological Project: Newport Coast Settlement Systems, Analysis, and Discussion. On file at South Central Coastal Archaeological Center, California State University, Fullerton.
225
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 11
being hunted during this era. Inland Millingstone sites are characterized by numerous manos, metates, and hammerstones. Shell middens are common at coastal Millingstone sites. Coarsegrained lithic materials, such as quartzite and rhyolite, are more common than fine-grained materials in flaked stone tools from this time. Projectile points are found in archaeological sites from this period, but they are far fewer in number than from sites dating to before 6,000 years BP.

An increase in the size of groups and the stability of settlements is indicated by deep, extensive middens at some sites from this period.9
In sites post-dating roughly 3,000 years BP, archaeological evidence indicates the reliance on both plant gathering and hunting continued and was more specialized and locally adapted to particular environments. Mortars and pestles were added to metates and manos for grinding seeds and other vegetable material. Chipped-stone tools became more refined and specialized, and bone tools were more common. During this period, new peoples from the Great Basin began entering Southern California. These immigrants, who spoke an Uto-Aztecan language, seem to have displaced or absorbed the earlier population of Hokan-speaking peoples. The exact time of their entry into the region is not known; however, they were present in Southern California during the final phase of prehistory. During this period, population densities were higher than before; and settlement became concentrated in villages and communities along the coast and interior valleys.10,11 During the Intermediate Period, mortars and pestles appeared, indicating the beginning of acorn exploitation. Use of the acorn, a high-calorie, storable food source, probably allowed greater sedentism and facilitated an increased level of social organization. Large projectile points from archaeological sites of this period indicate that the bow and arrow, a hallmark of the Late Prehistoric Period, had not yet been introduced; and hunting was likely accomplished using the atlatl (spear thrower) instead. Settlement patterns during this time are not well understood. The semi-sedentary settlement pattern characteristic of the Late Prehistoric Period may have begun during the Intermediate Period, although territoriality may not yet have developed partially because of lower population densities. Regional subcultures also started to develop, each with its own geographical territory and language or dialect. 12,13,14 These were most likely the basis for the groups encountered by the first Europeans during the 18th century.15 Despite the regional differences, many material culture traits were shared among groups, indicating a great deal of interaction.16 The Late Prehistoric Period is better understood than earlier periods largely through ethnographic analogy made possible by ethnographic and anthropological research of the descendants of these groups in in the late 19th and early 20th centuries.
9 Wallace, William -
´$UFKDHRORJLFal Research at Malaga &RYHµ,QSymposium: A New Look at Some Old Sites, ed. G.S. Breschini and T. Haversat. Salinas, CA: Coyote Press. 10 Erlandson, J.M., D.J. Kennett, B.L. Ingram, D.A. Guthrie, D.P. Morris, M.A. Tveshov, G.J. West, and P.L. Walker. 1996. ´$QArchaeological and Paleontological Chronology for Daisy Cave (CA-SMI-261), San Miguel Island, &DOLIRUQLDµRadiocarbon, 38: 355²373.
11 McCawley, W. 1996. The First Angelinos: The Gabrielino Indians of Los Angeles. Banning, CA: Malki Museum Press, 128²131.
12 Kroeber, Alfred L. 1925. Handbook of the Indians of California. Bureau of American Ethnology Bulletin 78.

Washington, DC: Smithsonian Institution.
13 McCawley, W. 1996. The First Angelinos: The Gabrielino Indians of Los Angeles. Banning, CA: Malki Museum Press, 128²131.
14 Moratto, M.J. 1984. California Archaeology. New York, NY: Academic Press, 103²13. 15 Erlandson, J.M., D.J. Kennett, B.L. Ingram, D.A. Guthrie, D.P. Morris, M.A. Tveshov, G.J. West, and P.L. Walker.

´An Archaeological and Paleontological Chronology for Daisy Cave (CA-SMI-261), San Miguel Island, CaliforQLDµRadiocarbon, 38: 355²373.
16 McCawley, W. 1996. The First Angelinos: The Gabrielino Indians of Los Angeles. Banning, CA: Malki Museum Press, 128²131.
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4.3 GABRIELENO ARCHAEOLOGY AND ETHNOGRAPHY
The Shoshonean migration marks the arrival of Uto-Aztecan speakers to Southern California. The Gabrieleno, a branch of Shoshonean, arrived around 500 BC. Their language has been identified as Cupon language which is part of the larger Uto-Aztecan.17 At the time of Spanish contact, the Gabrieleno inhabited a rich coastal and inland region of Southern California consisting of present-day Los Angeles and Orange Counties and extending into western Riverside County, including San Nicolas, San Clemente and Santa Catalina Islands.18 Second only to the Chumash, the Gabrielino were the wealthiest, most populous, and most powerful ethnic group in Southern California.19 Settlement pattern studies concluded there is a presence of both primary villages that were occupied year-round and secondary temporary camps inhabited at various times of the season. Both primary and temporary settlements seemed to be located near water sources.20
Their culture was very similar to that of the Chumash despite marked differences in language, mortuary practices, and the manufacture and use of pottery. The Gabrieleno influenced cultures as far north as the San Joaquin Valley Yokuts, as far east as the Colorado River, and south into Baja California.

The majority of Gabrieleno artifacts reflect an ornate craftsmanship with everyday use items often decorated with asphaltum and shell inlaid, paintings and rare minerals. The Gabrieleno established a well-versed economic system focusing on trading goods, food reserves, and disturbed resources.

The Gabrieleno quarried steatite from Santa Catalina Island and often traded with neighboring tribes. Steatite items are highly diagnostic of the Gabrieleno, and it was used to make pipes, animal carvings, cooking vessels, and ornaments.21
The Gabrieleno houses were circular structures thatched with tule, fern, or carrizo (weeds). Some houses were recorded as large as 60 feet in diameter. Sweathouses, menstrual huts, and ceremonial enclosures were other common structures found in villages.22 Unfortunately, most of the 17 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, and D.P. MorULV´Arlington Springs Revisited.µ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 18 Bean, L.J. and &56PLWK
´*DEULHOLQRµ,QHandbook of North American Indians. Vol. 8. California, ed. R.F.

Heizer. Washington, DC: Smithsonian Institution.
19 Erlandson, J.M., D.J. Kennett, B.L. Ingram, D.A. Guthrie, D.P. Morris, M.A. Tveshov, G.J. West, and P.L. Walker.

´$Q$UFKDHROogical and Paleontological Chronology for Daisy Cave (CA-SMI-261), San Miguel Island, &DOLIRUQLDµRadiocarbon, 38: 355²373.
20 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, and D.P. Morris. 2002. ´$UOLQJWRQ6SULQJVRHYLVLWHGµ,n Proceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 21 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, DQG'30RUULV´$UOLQJWRQ6SULQJV5HYLVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 22 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, and D.P. Morris. 2002. ´$UOLQJWRQ6SULQJV5HYLVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 227
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 13
Gabrielenos were gone long before systematic ethnographic studies could be completed. As a result, knowledge of their cultural and lifeways is sparse.23

4.4 SERRANO ARCHAEOLOGY AND ETHNOGRAPHY
The Serrano language is classified as being within the Takik language family.24 The Serrano lived in the San Bernardino Mountains east of the Cajon Pass to as far east as present-day Twentynine Palms and as far south as the Yucaipa Valley.25 The Serrano had exogamous moieties made up of exogamous, patrilineal clans. Lineage and clan leaders were hereditary ceremonial leaders who controlled sacred bundles and lived in ceremonial houses.26 The Serrano were organized into local lineages occupying favored territories but rarely claiming any territor\IDUIURPWKHOLQHDJH·V KRPH base.27 The estimated population of the Serrano before European contact was between 1,500 and 2,500. It is difficult to estimate the number of Serranos living in each village; however, it is likely that the villages held only as many Serranos as could be accommodated by water sources.28
The Serrano lived in dwellings which were circular, domed structures built over an excavated area.

These structures were built with fire pits and primarily served as sleeping areas. Ceremonial houses were the only other buildings in the villages and were normally occupied by the village priest.29 In the Serrano artifact assemblage, it is noted to be similar to that of the neighboring Cahuilla and includes musical instruments such as rattles and flutes; utensils and ornaments such as fire drills, mortars, metates, pipes, beads, awls, and projectile points from wood, shell, bone, and stone. The Serrano were talented pottery and basket makers. Their pots were made of coiled clay smoothed out with a paddle and set in the sun to dry before being fired in a pit. Serrano Brown ware was sometimes decorated with designs of circles and lines of either red or black.30 The Serrano were also known for their petroglyphs. Abstract and geometric designs are often seen with representational figures of sheep, lizards (zoomorphs) and human beings (anthropomorphs). 23 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, and D.P. Morris. 2002. ´$UOLQJWRQ6SULQJV5HYLVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 24 Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA: University of California Press.
25 Johnson, J.R., T.W. Stafford Jr.+2$MLHDQG'30RUULV´$UOLQJWRQ6SUings ReviVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 26 Johnson, J.R., T.W. Stafford Jr., H.2$MLHDQG'30RUULV´$UOLQJWRQ6SULQJV5HYLVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 27 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, and D.P. Morris. 2002. ´$UOLQgton Springs Revisited.µ In Proceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 28 Stickel, E.G. and L.J. Weinman-Roberts. 1980. An Overview of the Cultural Resources of the Western Mojave Desert. Bureau of Land Management Cultural Resources Publications. 29 Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA: University of California Press.
30 Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA: University of California Press.
228
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 14
Researchers have proposed that the petroglyphs were records of important events, rough maps, and artistic representations of native life.31

4.5 CAHUILLA ARCHAEOLOGY AND ETHNOGRAPHY
The Cahuilla occupied a roughly 2,400-square-mile territory that covered a wide ecological range extending from the San Jacinto Mountains to the desert to the Salton Sea and was divided into geographical areas claimed by corporate groups called a Sib, composed of several lineages and villages.32 The territory was in a strategic location that provided access to resources through trade, as it was bisected by the major trade route, the Coco-Maricopa Trail. In addition, the territory was located at the periphery of two other routes, the Santa Fe Trail (which connected what is now the city of Needles to Cajon Pass) and the Yuman Trail which crossed the Borrego Desert, beginning in the city of Yuma and ending in San Diego.33 The Cahuilla, although separated from neighboring tribes by geographical features, still interacted with groups such as the Serrano, with whom the Cahuilla shared a similar ecological base, subsistence system, social and political structure, and belief system. They also regularly interacted with the Gabrieleno, a group essential in the diffusion of ideas and natural resources from the coast to inland.34 Cahuilla settlements were occupied year-round, with portions of the population, (sometimes up to one-half or two-thirds) practicing residential mobility patterns. This residential mobility was marked by faction groups leaving the main settlements for days or weeks at a time to engage in hunting, gathering, and trading activities. The settlements were located near ecological and geographical features, such as rivers, springs, or caves and canyons to maximize availability of resources.

Hunting and gathering resources such as acorns, mesquite, pinyon, cacti, tubers, and wild game remained the primary lifeway through this time. Agriculture was minimally practiced and did not have a profound effect on settlement or subsistence patterns. The Cahuilla maximized food storage with the use of large granaries near households and ceremonial structures.35 The first extensive contact with Europeans occurred when the Juan Bautista de Anza expedition passed through the area, setting up a trade route to provide resources to the missions by land.

While the first contact was hostile, later interaction included baptisms (at the surrounding missions) and, eventually, the adoption by the Cahuilla of Euro-American cattle and agricultural practices.

The Cahuilla managed to maintain their political and economic autonomy through the Spanish period, Mexican period, and into the American pioneer period. A smallpox epidemic in 1863 31 Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA: University of California Press.
32 Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA: University of California Press, 68-69, 70-75.
33 Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA: University of California Press, 68-69, 70-75.
34 Johnson, J.R., T.W. StafforG-U+2$MLHDQG'30RUULV´$UOLQJWRn Springs 5HYLVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 35 Johnson, J.R., T.W. Stafford Jr+2$MLHDQG'30RUULV´$UOLQJWRQ6SULQJV5HYLVLWHGµ,QProceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 229
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 15
decimated a large part of the population and weakened their sovereignty. The Cahuilla remained (for the most part) on their own lands until 1877 when reservations were established.36

4.6 HISTORIC CONTEXT
Regional History
Euro-American settlement began in the area in the early 1800s as persons seeking land and fortunes made their way west from the mid-west and east coast of the United States (U.S.) or north from what is now known as Mexico. The Catholic missionaries were a catalyst in the expansion of Euro-American influences in this region. A group of missionaries, Native Americans, and soldiers from the San Gabriel Mission named San Bernardino in honor of the feast day of San Bernardino of Sienna when they entered the valley on May 10, 1810.37 The Mission San Gabriel initially attempted to expand its influence in the San Bernardino Valley when Father Dumetz was sent to the valley in 1810 to establish the mission station known as Politana. An earthquake in 1812 followed by raids from neighboring Native American tribes caused a lull of interest in the Politana by the Mission San Gabriel. 38 Beginning in the 1830s, the Mission San Gabriel established a branch at the Asistencia (California Historical Landmark No. 42).39 The Asistencia is currently located in the Mission District in eastern Loma Linda.40 During the years 1822 through 1827, the Mission Fathers traveled the San Bernardino-Sonora Road, also known as the Emigrant or Mormon Trail, (California Point of Historical Interest No. 96), which traversed Redlands, Old San Bernardino, Colton, and Agua Mansa, from the Mission San Gabriel to the San Bernardino Asistencia.41 After Mexico achieved independence from Spain in 1821, the Mexican government seized ownership of church properties through the Secularization Act of 1833, and lands were redistributed as ranchos through a tribute system.42 This land redistribution by the Mexican government fostered the development of ranchos in what is now known as California.

As a result of the Mexican government seizing control of church properties, the Asistencia was largely abandoned by the late 1830s. The Lugo family, under leadership of Jose del Carmen Lugo, moved into the former Asistencia buildings in order to establish a colony.43 Slover Mountain, also known as El Cerrito Solo, was the natural landmark used for establishing the boundaries of the /XJRV·ODQG grant within the San Bernardino Rancho.44 What became known as San Bernardino County originally consisted of the following ranchos: Canon de Santa Ana, Jurupa and El Rincon, 36 Johnson, J.R., T.W. Stafford Jr., H.O. Ajie, and D.P. Morris. ´Arlington Springs RevisiWHGµ In Proceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H. Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History, 541²5. 37 Federal WriterV·3URMHFWRIWKH:RUNV3URMHFW$GPLQLVWration for the State of California. 1939. California: A Guide to the Golden State. New York, NY: Hastings House Publishers, 616, 455, 456. 38 Scott, M.B. 1976. ´'HYHORSPent of Water Facilities in the Santa Ana River Basin, California, 1810- µ
39 State of California Office of Historic Preservation, 2009b. 40 Loma Linda, City of. 2008. ´&KDSWHU+LVWRULF0LVVLRn Overlay District; Loma Linda Municipal Code. Accessed March 5, 2009. Available at: http://ordlink.com/codes/lomalinda/index.htm 41 State of California Resources Agency. 31 January 1973. ´3RLQWRI+LVWRULFDO,QWHUHVW6DQ%HUQDUGLQR-Sonora Road, Ontario.µ
42 Van Horn, Kurt. 1974. ´7HPSWLQJ7emecula. The Making and Unmaking of a Southern California CommunityµThe Journal of San Diego History. Winter, Volume 20, Number 1. 43 Scott, M.B. 1976. ´'HYHORSPHQWRI:DWHU)DFLOLWLHVLQWKH6DQWD$QD5LYHU%DVLQ&alifornia, 1810- µ
44 State of California Resources Agency. 31 January 1973. ´Point of Historical Interest, Slover Mountain.µ 230
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 16
Cucamonga, Santa Ana del Chino, San Bernardino, and Muscupiabe.45 The ranchos largely subsisted on cattle ranching and raising crops which were irrigated from the Mill Creek Zanja and other irrigation ditches.

In an effort to gain territory, the U.S. seized the territory of Texas from the Mexican government, which resulted in the Mexican-American War. The State of California was annexed by the U.S. in 1848 through the Treaty of Guadalupe Hidalgo which ended the Mexican-American War (California Point of Historical Interest No. 151).46 The end of the war further paved the way for Euro-American settlement from the east. Ontario was sectioned as part of the public land survey system and was not owned as a rancho.

City of Ontario
The following historic context is quoted from the City of Ontario·s ´History.µ47 It was in the first week of August 1881 when George Chaffey, a Canadian engineer, viewed the wastes known as the Cucamonga Desert and decided that this patch of land, if properly watered, could become productive and profitable. George and his brother William bought the "San Antonio lands," 6,218 acres with water rights for $60,000. This was the nucleus of their new model colony. They subsequently expanded to the Southern Pacific Railroad tracks on the south. On the north, they took in the Kincaid Ranch at San Antonio Canyon, an all-important source of water.
45 Schuiling, Walter C. 1984. San Bernardino County: Land of Contrasts. Brightwaters, NY: Windsor Publications. 46 State of California Office of Historic Preservation. 2009. California Historical Landmarks: Los Angeles County Accessed January 12, 2009. Available at: http://www.ohp.parks.ca.gov/?page_id=21476 47 City of Ontario. ´Facts and History.µ Available at: https://www.ontarioca.gov/FactsAndHistory 231
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 17
The Ontario Colony lands were quickly surveyed and went on sale in November 1882.

The centerpiece was Euclid Avenue, eight miles long and two hundred feet wide, the twin "driveways" separated by a parkway which was seeded in grass and lined with pepper trees. George named Euclid Avenue after the great Greek mathematician whose book Elements of Geometry had been a favorite subject for George in school.

The primary requirement, which had to be met before the land could be utilized, was that water had to be found and brought to the town. Chaffey laid miles of cement pipe for this purpose and later the San Antonio Water Co. drove a tunnel into the head of the canyon to tap the underground flow³then an innovation in the field. The need for electric power to lift water from deep wells led to the establishment of the Ontario Power Co.

Another innovation in the settlement of Ontario was the provision, whereby, purchasers of land automatically received shares in the water company. This would ensure purchasers that a share of water proportional to their acreage would be piped to their land. This eliminated many problems that faced settlers elsewhere, where land rights and water rights were kept separate.

TKH UHVXOWV RI *HRUJH &KDIIH\·V ODERUV VKRZHG ZKDW FRXOG EH Dchieved. All too soon, however, the Chaffey brothers went off to Australia to attempt a repeat performance of their success as city planners here.

Charles Frankish became the guiding force during 2QWDULR·V HDUO\ \HDUV1RPDWWHUZKDW the activity he undertook, Frankish always threw himself into his work and was determined to do the best possible job.
232
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 18
In 1887, 2QWDULR·VXQLTXH´gravity mule carµ made its first run on Euclid Avenue. Charles Frankish and Godfrey Stamm established the Ontario and San Antonio Heights R.R. Co.

Engineer John Tays of Upland added the pull-out trailer that allowed the mules to coast downhill after each laborious pull from Holt to Twenty²Fourth Street. The mule car served until 1895, when it was replaced by an electric streetcar and returned temporarily when a flood damaged the electrical generator in the powerhouse.

On Dec 10th, 1891, Ontario was incorporated as a city of the sixth class under the California Constitution. It adopted a City Council-City Manager form of government. The mayor was at first called the "President of the Board," and was chosen by the Council, or the Board of Trustees as it was then called, from among their number. Subsequently, the law was changed to allow the people to elect the mayor directly.

Ontario first developed as an agricultural community, largely but not exclusively devoted to citrus. A few of the lovely Victorian "grove houses" still survive, relics of the days when growers could pretend that they were living the graceful lives of the old Spanish dons³ until it came time for harvest.

Chaffey College, which was located where the Chaffey brothers put it until 1960, originally emphasized agricultural subjects to give the growers a hand. It was there that Prof. George Weldon developed the %DEFRFN SHDFK DQ DGDSWDWLRQ WR &DOLIRUQLD·V PLOG ZLQWHUV The college has moved to Rancho Cucamonga now, but Chaffey High School is still on what was originally a joint campus
.

Even though the groves have gone from the West End, Ontario is still close to the "ton-mile center" of the industry. In addition to oranges, the production of peaches, walnuts, lemons and grapes was also important to the growth of Ontario and the adjoining city of Upland. 233
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 19
In 1923, Judge Archie Mitchell, Waldo Waterman, and some other airplane enthusiasts established Latimer Field. From that time on, the town became increasingly aviation conscious. Urban growth pushed the fliers progressively east, until they took up their present location, the Ontario International Airport. During World War II, this was a busy training center for pilots of the hot Lockheed P-38 "Lightning" twin-boom fighter.

Since World War II, Ontario has become a much more diversified community. The mean temperature of 61 degrees and the average rainfall of 18.4" continues to attract more residents. The city has expanded from the 0.38 square mile area incorporated back in 1891, up to almost 50 square miles. The economy now reflects an industrial and manufacturing base. Ten thousand acres are zoned for industrial use. With three major railroads, the San Bernardino, Pomona, and Devore Freeways (10, 60, and 15), and the Ontario International Airport. Ontario is well provided with major transportation resources. Its proximity to Los Angeles ensures that Ontario will continue to grow in the years ahead.
2QWDULR·VRIILFLDOVRQJLV "Beautiful Ontario," written by Paul Coronel in 1960. The official flower is the Charlotte Armstrong rose, developed by local nurseryman John Armstrong and named for his first wife. At different times, Ontario has adopted as its slogan or motto each of the following: The Model Colony; The Model City; The City That Charms; Ontario Offers Opportunity; Pulse of the Inland Empire; Stop and Grow with Ontario; Gateway to the Inland Empire; A Balanced Community; The Gateway to Southern California; and Southern California's Next Urban Center.
234
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SECTION 5.0

METHODS
This section of the report describes the methods employed in the characterization and evaluation of cultural and tribal cultural resources within the proposed project study area. The study methods were designed to provide the substantial evidence required to address the scope of analysis recommended in Section 15064.5 of the CEQA regulations related to cultural resources, Native American sacred sites, and human remains.

5.1 RECORDS SEARCH
Cultural Resources Records Search
A background records search was conducted to identify previously documented cultural resources within or near the project site. A record search was conducted at the South Central Coastal Information Center, located at California State University, Fullerton, by staff on June 9, 2021. A Sacred Lands File search was conducted by the Native American Heritage Commission on August 24, 2021. The California Office of Historic Preservation Built Environment Resource Directory and City of Ontario California Historical Resources Inventory Database (CHRID) were reviewed on August 17, 2021. National, state, and local inventories of cultural resources were examined to identify significant events and personages, development patterns, and unique interpretations of architectural styles. The following inventories were consulted:
x National Register of Historic Places (2021)
x California Register of Historical Resources (2021)
x California Historical Landmarks
x California Points of Historical Interest
x City of Sierra Madre Historical Landmarks (Historical Landmarks) Staff conducted a record search at SCCIC on June 9, 2021 and included a 0.25-mile radius around the project site. The purpose of the literature search was to identify cultural resources previously recorded within and around the project site.

5.2 LITERATURE REVIEW
A literature review was completed to determine if the proposed project would have the potential to have a significant impact on previously recorded historical resources, thus requiring the consideration of avoidance and minimization measures, in accordance with CEQA Regulations.

Research included the examination of published and unpublished literature, local libraries, historic context statements, databases of previously completed surveys in the area, and a review of current and historic maps and aerial photographs. Historic aerial photographs were available and reviewed for the years 1952, 1953, 1954, 1964, 1972, 1977, 1978, 1980, 1994, 2002, 2003, 2005, 2009, 2010, 2012, 2014, 2016, and 2018. Additionally, historic topographic maps were available and reviewed for the years 1894, 1896, 1898, 1900, 1904, 1907, 1910, 1913, 1915, 1920, 1927, 1928, 1931, 1933, 1940, 1941, 1947, 1958, 1964, 1967, 1974, 1988, 1994, 1999, 2012, 2015, and 2018.
235
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 21

5.3 ARCHAEOLOGICAL FIELD SURVEY
All cultural resource work was carried out under the direct supervision of qualified archaeologists who meet the Secretar\RIWKH,QWHULRU·VProfessional Qualification Standards for Archaeology and History, and in accordance with the procedures for compliance with CEQA. Key cultural resources personnel who conducted the field survey and prepared the technical report include Sapphos Environmental, Inc.·s Mr. Daniel Woodward, MA, (RPA #989900) who is on the Riverside County Planning Department Cultural Consultant List as Professional Archaeologist.

Sapphos Environmental, Inc. archaeologists, Mr. Woodward conducted pedestrian archaeological field survey of the project area on August 12, 2021, to document the existing conditions of the portion of open land in the project area. The project area was surveyed using transects spaced no greater than 15 meters apart. Mr. Woodward were equipped with a sub-meter accurate GPS unit recording spatial data and documented the survey area and all findings with a high-resolution digital camera. The area surveyed was open area in the SW portion of the project and consisted of approximately 0.8 acre of surface area. The overall ground visibility during the pedestrian survey was fair (approximately 30 percent). The project area is heavily disturbed, with piles of fill material, rubble and modern construction debris scattered across the property (Figure 5.3-1, Overview of Project Area). Sapphos Environmental archaeologists followed the 6HFUHWDU\ RI WKH ,QWHULRU·V Standards and Guidelines for Archaeology and Historic Preservation48 during the fieldwork.

The archaeologist examined exposed ground surface for artifacts (e.g., flaked stone tools, toolmaking debris, milling tools, ceramics), faunal remains (e.g., marine shell and bone), soil discoloration that might indicate the presence of a cultural midden, and features indicative of the former presence of structures or buildings (e.g., standing exterior walls, postholes, foundations) or historic debris (e.g., metal, glass, ceramics). Exposed subsurface soils resulting from rodent and other animal burrows were consistently identified and were visually inspected for cultural resources.

Appropriate personal protective equipment (i.e., snake gaiters, safety glasses, high-visibility safety vests, and appropriate boots) were used during the survey. Weather was ideal for survey; clear and sunny with a light breeze and a relative 85 degrees Fahrenheit. Survey methods included closeinterval 5-meter systematic transects and examination of all rodent spoil piles, exposed soil profiles, and disturbances. Extra time and effort were given to the examination of these disturbances in areas of decreased ground visibility, thereby supplementing the typical pedestrian survey methods with more intensive efforts.
48 Federal Register. 29 September 1983. Volume 48, Number 190, 44716. 236
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 22
Figure 5.3-1. Overview of Project Area
SOURCE: Sapphos Environmental, Inc., 2021
237
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 23
SECTION 6.0

RESULTS
This section of the report characterizes the baseline conditions for cultural resources; evaluates the potential for the proposed project to result in significant direct, indirect, or cumulative impacts, and identifies feasible measures capable of avoiding or reducing the significant impacts to cultural resources that would result from reasonably foreseeable development of the proposed project.

6.1 SUMMARY OF FINDINGS
A records search was conducted at the SCCIC on June 9, 2021. Results of the records search indicated that there have been zero (0) resources identified within the project site or 0.25-mile buffer study area. A search of the BERD indicated zero (0) properties were identified within the project site; however, one (1) property is located within the 0.25-mile buffer study area. One (1) report was identified within the 0.25-mile buffer study area (Table 6.1-1, Previous Surveys within the Study Area).

TABLE 6.1-1

PREVIOUS SURVEYS WITHIN THE STUDY AREA
Report No. Year Report Title
Within
Project Site Author
SB-03901 2003
Cultural Resource Assessment:

Cingular Wireless Facility #SB 245-
01, Ontario, San Bernardino County,
CA.

No Caprice Harper

6.2 CULTURAL RESOURCES
The 2021 SCCIC records search indicated that there are no previously recorded cultural resources located within the project site or 0.25-mile buffer study area.

A review of the BERD indicated 840 E. Francis Street was previously indicated and assigned a status code of 7N, or ´Needs to be reevaluated - formerly coded as may become NR eligible with specific conditions.µ No additional resources were identified in the records and database searches (Table 6.2-1, Resources within the Study Area).

TABLE 6.2-1

RESOURCES WITHIN THE STUDY AREA
Primary
No. Address Property Type
Status Code Within Project
Site
36-015808 840 E. Francis Street Building 7N N
238
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 24
Local Agencies
City of Ontario
The results of the City of Ontario California Historical Resource Inventory Database (CHRID) review were negative for the project site and a 0.25-mile search radius.

6.3 RESULTS OF THE PHASE I ARCHAEOLOGICAL RESOURCES SURVEY The pedestrian archaeological resources survey was completed for the proposed project site on August 12, 2021. No cultural resources were identified during the survey.

6.4 NATIVE AMERICAN SACRED SITES AND HUMAN REMAINS
The results of the request for review of the SLF from the NAHC are negative; therefore, there are no sacred land within the project footprint. The record searches, supplemental research, and field surveys did not reveal any known cemeteries or burial sites within the action area.

6.5 IMPACT ANALYSIS
Based on the desktop review, record search results, site visit, and a review of Section 15064.5 (b) of the CEQA Guidelines, Sapphos Environmental, Inc. has determined that there would be a less than significant impact to cultural resources as a result of the proposed project.

Section 15064.5 (b) states ´a project with an effect that may cause a substantial adverse change in the significance of an historical resource is a project that may have a significant effect on the environment. Substantial adverse change in the significance of an historical resource means physical demolition, destruction, relocation, or alteration of the resource or its immediate surroundings such that the significance of an historical resource would be materially impaired.µ49 A Statement of Overring Considerations was adopted with The Ontario Plan (General Plan) Environmental Impact Report (EIR) for the demolition of Tier 3 historic properties. Tier 1 and 2 historic properties require preparation of an EIR. The subject property is not currently on the Historic Resource Inventory, but staff will recommend the addition to the Historic Preservation Subcommittee- HPSC (the keeper) and will prepare a Tier 3 Determination for consideration. This process will be initiated with submittal of entitlement applications and the Certificate of Appropriateness for demolition application. Thus, a finding of less than significant impacts is recommended for the proposed project.
49 Section 15064.5 (b)(1) CEQA Guidelines, 177. 2021.
239
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SECTION 7.0

CONCLUSION AND RECOMMENDATIONS
This section of the report provides the conclusions and recommendations for minimizing potential impacts to cultural resources from the proposed project.

There are no previously recorded cultural resources on file with the SCCIC within the proposed project area or 0.25-mile buffer. The subject property is a Tier 3 property per The Ontario Plan and mitigation measures were previously approved through the Statement of Overriding Consideration.

Based on the negative archaeological resource survey, and because no archaeological resources were identified through the SCCIC records search, there is a low probability to encounter archaeological resources based on the inherent characteristics and location of the project area.

There were no cemeteries or burial sites observed as a result of the review of historic aerial photographs and historic topographic maps. There is a low probability to encounter human remains based on the inherent characteristics and location of the project area based on this review.

Through the implementation of project design features, impacts to cultural resources are anticipated to be less than significant. Therefore, the proposed project would not result in a substantial adverse change to a historical resource (Section 15064.5(b) of the CEQA Guidelines. 240
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 26
SECTION 8.0

REFERENCES
Bean, L.J. and &56PLWK
´*DEULHOLQRµ,QHandbook of North American Indians. Vol. 8.

California, ed. R.F. Heizer. Washington, DC: Smithsonian Institution.

Bean, Lowell J. 1972. Mukat's People: The Cahuilla Indians of Southern California. Berkeley, CA:

University of California Press.

California Code of Regulations, Title 14, Chapter 3. Amended 6 October 2005. Guidelines for the Implementation of the California Environmental Quality Act, Appendix G.

California Environmental Quality Act Statue and Guidelines 2021, Section 15054.5 (a)(1)(2).

City of Ontario. ´Facts and History.µ Available at: https://www.ontarioca.gov/FactsAndHistory Erlandson, J.M., D.J. Kennett, B.L. Ingram, D.A. Guthrie, D.P. Morris, M.A. Tveshov, G.J. West, and P.L. Walker. 1996. ´$QArchaeological and Paleontological Chronology for Daisy Cave (CA-SMI-261), San MiJXHO,VODQG&DOLIRUQLDµRadiocarbon, 38: 355²373.

Federal Register. 29 September 1983. Volume 48, Number 190, 44716.

Federal WritHUV· Project of the Works Project Administration for the State of California. 1939.

California: A Guide to the Golden State. New York, NY: Hastings House Publishers, 616, 455, 456.

Johnson, J.R., T.W. Stafford Jr., H.O$MLHDQG'30RUULV´Arlington Springs Revisited.µ In Proceedings of the Fifth California Islands Symposium. ed. D. Browne, K. Mitchell, and H.

Chaney. Santa Barbara, CA: USDI Minerals Management Service and The Santa Barbara Museum of Natural History.

Koerper, Henry C., Roger D. Mason, and Mark L. PeterVRQ´&RPSOH[LW\'HPRJUDSK\DQG Change in Late HolocHQH2UDQJH&RXQW\µ,QCatalysts to Complexity: Late Holocene Societies of the California Coast, ed. M. Erlandson and Terry L. Jones. Perspectives in California Archaeology. Vol. 6. Los Angeles, CA: University of California, Los Angeles, Institute of Archaeology.

Kroeber, Alfred L. 1925. Handbook of the Indians of California. Bureau of American Ethnology Bulletin 78. Washington, DC: Smithsonian Institution.

Loma Linda, City of. 2008. ´&KDSWHU.82 Historic Mission Overlay District; Loma Linda Municipal Code. Accessed March 5, 2009. Available at:
http://ordlink.com/codes/lomalinda/index.htm
Mason, R.D., and M.L. Peterson. 1994. Newport Coast Archaeological Project: Newport Coast Settlement Systems, Analysis, and Discussion. On file at South Central Coastal Archaeological Center, California State University, Fullerton. 241
1948 S. Bon View Avenue, Ontario, California Cultural Resources Technical Report August 25, 2021 Page 27
McCawley, W. 1996. The First Angelinos: The Gabrielino Indians of Los Angeles. Banning, CA:

Malki Museum Press.

Moratto, M.J. 1984. California Archaeology. New York, NY: Academic Press, 103²13.

Office of Historic Preservation, Department of Parks and Recreation, State of &DOLIRUQLD´&DOifornia Historical Landmarks Registration ProgUDPVµAvailable at: www.ohp.parks.ca.gov Office of Historic Preservation. Undated. ´7HFKQLcal Assistance Bulletin 6: California Register and National Register, A Comparison (for purposes of determining eligibility for the California Register
µ$YDLODEOHDW
ZZZRKSSDUNVFDJov
Schuiling, Walter C. 1984. San Bernardino County: Land of Contrasts. Brightwaters, NY: Windsor Publications.

Scott, M.B. 1976. ´'HYHORSPHQWRI:DWHU)DFLOLWLes in the Santa Ana River Basin, California, 1810-
µ
Section 15064.5 (b)(1) CEQA Guidelines, 177. 2021.

State of California Office of Historic Preservation, 2009b.

State of California Office of Historic Preservation. 2009. California Historical Landmarks: Los Angeles County Accessed January 12, 2009. Available at:
http://www.ohp.parks.ca.gov/?page_id=21476
State of California Resources Agency. 31 January 1973. ´3RLQWRI+LVWRULFDO,QWHUHVW6DQ Bernardino-Sonora Road, Ontario.µ
Stickel, E.G. and L.J. Weinman-Roberts. 1980. An Overview of the Cultural Resources of the Western Mojave Desert. Bureau of Land Management Cultural Resources Publications.

Van Horn, Kurt. 1974. ´7HPSWLQJ7emecula. The Making and Unmaking of a Southern California CommunityµThe Journal of San Diego History. Winter, Volume 20, Number 1.

Wallace, :LOOLDP-
´Archaeological Research at MalagD&RYHµ,QSymposium: A New Look at Some Old Sites, ed. G.S. Breschini and T. Haversat. Salinas, CA: Coyote Press.

Section 15064.5 (b) CEQA Guidelines.
242
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Health Risk Assessment
Bon View Project
City of Ontario, California
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ǆŚŝďŝƚϮ WƌŽũĞĐƚ^ŝƚĞ sŝĐŝŶŝƚǇ DĂƉ ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ ϯ

ǆŚŝďŝƚϯ ŽŶĐĞƉƚƵĂů^ŝƚĞWůĂŶ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ ϰ WW
E/y
ƉƉĞŶĚŝǆ͗DŽĚĞůŝŶŐ ĂƚĂ
245
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮŝŝŝ
>/^dK&Z
s/d
d
ZD^
ĂďƐŽƌƉƚŝŽŶĨĂĐƚŽƌĨƌŽŵŝŶŚĂůĂƚŝŽŶ

^ ĚǀĂŶĐĞĚŽůůĂďŽƌĂƚŝǀĞ
ŵŝƐƐŝŽŶƐ^ƚƵĚǇ
^& ĂŐĞƐĞŶƐŝƚŝǀŝƚǇĨĂĐƚŽƌ
ƐƐĞŵďůǇŝůů
WE ƐƐĞƐƐŽƌ͛ƐWĂƌĐĞůEƵŵďĞƌ
W^ ĂƵǆŝůŝĂƌǇƉŽǁĞƌƐǇƐƚĞŵ
d ĂǀĞƌĂŐŝŶŐƚŝŵĞ
dD ŝƌdŽǆŝĐŽŶƚƌŽůDĞĂƐƵƌĞ
Z ĂůŝĨŽƌŶŝĂŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ
ĂůŝĨŽƌŶŝĂůĞĂŶŝƌĐƚ

Y ĂůŝĨŽƌŶŝĂ
ŶǀŝƌŽŶŵĞŶƚĂůYƵĂůŝƚǇĐƚ
W& ĐĂŶĐĞƌƉŽƚĞŶĐǇĨĂĐƚŽƌ
Ăŝƌ ĂŝƌĐŽŶĐĞŶƚƌĂƚŝŽŶĨƌŽŵŵŽĚĞů
ŝ ĂŝƌĐŽŶĐĞŶƚƌĂƚŝŽŶŽĨƐƵďƐƚĂŶĐĞ
Z ĚĂŝůǇďƌĞĂƚŚŝŶŐƌĂƚĞ
KKZ^ ŝĞƐĞůKĨĨͲZŽĂĚZĞƉŽƌƚŝŶŐ^ǇƐƚĞŵ
WD ŝĞƐĞůWĂƌƚŝĐƵůĂƚĞDĂƚƚĞƌ
ZZW ŝĞƐĞůZŝƐŬZĞĚƵĐƚŝŽŶWůĂŶ
ŽƐĞͲĂŝƌ ĚŽĞƐƚŚƌŽƵŐŚŝŶŚĂůĂƚŝŽŶ

D&
ŵŝƐƐŝŽŶƐ&ĂĐƚŽƌDŽĚĞů

ĞǆƉŽƐƵƌĞĚƵƌĂƚŝŽŶ

& ĞǆƉŽƐƵƌĞĨƌĞƋƵĞŶĐǇ
Σ& &ĂŚƌĞŶŚĞŝƚ
& &ĞĚĞƌĂůůĞĂŶŝƌĐƚ
&, ĨƌĂĐƚŝŽŶŽĨƚŝŵĞƐƉĞŶƚĂƚŚŽŵĞ
'stZ ŐƌŽƐƐǀĞŚŝĐůĞǁĞŝŐŚƚƌĂƚŝŶŐ
,W ŚĂǌĂƌĚŽƵƐĂŝƌƉŽůůƵƚĂŶƚ
,Y ŚĞĂůƚŚƋƵŽƚŝĞŶƚ
,Z ŚĞĂůƚŚƌŝƐŬĂƐƐĞƐƐŵĞŶƚ
ŬŐ ŬŝůŽŐƌĂŵƐ
> ůŝƚĞƌ
Dd
^ DƵůƚŝƉůĞŝƌdŽǆŝĐƐ
ǆƉŽƐƵƌĞ^ƚƵĚǇ
D/Z DĂǆŝŵƵŵ/ŶĚŝǀŝĚƵĂůĂŶĐĞƌZŝƐŬ
ŵŐ ŵŝůůŝŐƌĂŵƐ
PŐŵ ŵŝĐƌŽŐƌĂŵƐƉĞƌĐƵďŝĐŵĞƚĞƌ
D^d DŽďŝůĞ^ŽƵƌĐĞŝƌdŽǆŝĐ
EY^ EĂƚŝŽŶĂůŵďŝĞŶƚŝƌYƵĂůŝƚǇ^ƚĂŶĚĂƌĚƐ
E
EĂƚŝŽŶĂů
ůĞǀĂƚŝŽŶĂƚĂƐĞƚ
E
^,W EĂƚŝŽŶĂů
ŵŝƐƐŝŽŶƐ^ƚĂŶĚĂƌĚƐĨŽƌ,ĂǌĂƌĚŽƵƐŝƌWŽůůƵƚĂŶƚƐ
EKϮ ŶŝƚƌŽŐĞŶĚŝŽǆŝĚĞ
EKy ŶŝƚƌŽŐĞŶŽǆŝĚĞƐ
Kϯ ŽǌŽŶĞ
K
,, KĨĨŝĐĞ
ŶǀŝƌŽŶŵĞŶƚĂů,ĞĂůƚŚ,ĂǌĂƌĚƐƐĞƐƐŵĞŶƚ
246
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮŝǀ
>/^dK&Z
s/d
d
ZD^;KEd/Eh
Ϳ
WD ƉĂƌƚŝĐƵůĂƚĞŵĂƚƚĞƌ
WDϭϬ ƉĂƌƚŝĐƵůĂƚĞŵĂƚƚĞƌůĞƐƐƚŚĂŶϭϬŵŝĐƌŽŶƐŝŶĚŝĂŵĞƚĞƌ WDϮ͘ϱ ƉĂƌƚŝĐƵůĂƚĞŵĂƚƚĞƌůĞƐƐƚŚĂŶϮ͘ϱŵŝĐƌŽŶƐŝŶĚŝĂŵĞƚĞƌ W
ZW WŽƌƚĂďůĞ
ƋƵŝƉŵĞŶƚZĞŐŝƐƚƌĂƚŝŽŶWƌŽŐƌĂŵ
Z
> ZĞĨĞƌĞŶĐĞ
ǆƉŽƐƵƌĞ>ĞǀĞů
Z
>ŝ ZĞĨĞƌĞŶĐĞ
ǆƉŽƐƵƌĞ>ĞǀĞůŽĨƐƵďƐƚĂŶĐĞ
ZŝƐŬŝŶŚͲƌĞƐ ƌĞƐŝĚĞŶƚŝĂůŝŶŚĂůĂƚŝŽŶĐĂŶĐĞƌƌŝƐŬ
^ ^ĞŶĂƚĞŝůů
^ ^ŽƵƚŚŽĂƐƚŝƌĂƐŝŶ
^YD ^ŽƵƚŚŽĂƐƚŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ
dͲd ƚŽǆŝĐƐďĞƐƚĂǀĂŝůĂďůĞĐŽŶƚƌŽůƚĞĐŚŶŽůŽŐǇ
d dŽǆŝĐŝƌŽŶƚĂŵŝŶĂŶƚ

W hŶŝƚĞĚ^ƚĂƚĞƐ
ŶǀŝƌŽŶŵĞŶƚĂůWƌŽƚĞĐƚŝŽŶŐĞŶĐǇ
sDd ǀĞŚŝĐůĞŵŝůĞƐƚƌĂǀĞůĞĚ
sK ǀŽůĂƚŝůĞŽƌŐĂŶŝĐĐŽŵƉŽƵŶĚ
247
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁǀĞŶƵĞtĂƌĞŚŽƵƐĞ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
:ƵŶĞ ϮϬϮϭ
WĂŐĞͮϭ
1 INTRODUCTION
dŚĞƉƵƌƉŽƐĞŽĨ ƚŚŝƐ,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ ;,ZͿ ŝƐƚŽĞǀĂůƵĂƚĞƉŽƚĞŶƚŝĂůŚĞĂůƚŚ ƌŝƐŬƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ dŽǆŝĐ ŝƌ ŽŶƚĂŵŝŶĂŶƚƐ ;dͿ ŝŶĐůƵĚŝŶŐ ŝĞƐĞů WĂƌƚŝĐƵůĂƚĞ DĂƚƚĞƌ ;WDͿ ƌĞƐƵůƚŝŶŐ ĨƌŽŵ ƚŚĞ ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞƉƌŽƉŽƐĞĚ ƚŚĞŽŶsŝĞǁWƌŽũĞĐƚ ;WƌŽũĞĐƚͿ͘ dŚŝƐ,Z ǁĂƐƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ^ŽƵƚŚŽĂƐƚŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ;^YDͿĂŶĚŐƵŝĚĂŶĐĞĨƌŽŵ ƚŚĞKĨĨŝĐĞŽĨ
ŶǀŝƌŽŶŵĞŶƚĂů,ĞĂůƚŚ,ĂǌĂƌĚƐƐĞƐƐŵĞŶƚ;K
,,ͿƚŽĚĞƚĞƌŵŝŶĞŝĨŚĞĂůƚŚƌŝƐŬƐĂƌĞůŝŬĞůǇƚŽ
ŽĐĐƵƌĨƌŽŵƚŚĞWƌŽũĞĐƚ͘dĞĐŚŶŝĐĂůĚĂƚĂŝƐŝŶĐůƵĚĞĚĂƐƐĞĞƉƉĞŶĚŝǆ͗DŽĚĞůŝŶŐĂƚĂ͘

1.1 Project Location and Setting
dŚĞWƌŽũĞĐƚƐŝƚĞŝƐůŽĐĂƚĞĚĂƚƚŚĞŶŽƌƚŚǁĞƐƚĐŽƌŶĞƌŽĨ ^ŽƵƚŚŽŶsŝĞǁǀĞŶƵĞĂŶĚ ĂƐƚĞĚĂƌ^ƚƌĞĞƚŝŶƚŚĞ
ŝƚǇ ŽĨ KŶƚĂƌŝŽ͕ ĂůŝĨŽƌŶŝĂ ;ŝƚǇͿ͕ ŽƵŶƚǇ ŽĨ ^ĂŶ ĞƌŶĂƌĚŝŶŽ ;ŽƵŶƚǇͿ͕ ĂůŝĨŽƌŶŝĂ͘ dŚĞ ƐŝƚĞ ŝƐ ŐĞŶĞƌĂůůǇ ůŽĐĂƚĞĚŝŶƚŚĞǁĞƐƚĞƌŶƉŽƌƚŝŽŶŽĨƚŚĞŝƚǇ͕ĂƉƉƌŽǆŝŵĂƚĞůǇϬ͘ϱϬͲŵŝůĞŶŽƌƚŚ ŽĨ^ƚĂƚĞZŽƵƚĞϲϬ;^ZͲϲϬͿ ĂŶĚ Ϭ͘ϲϱͲŵŝůĞĞĂƐƚŽĨ
ƵĐůŝĚǀĞŶƵĞ;^ZͲϴϯͿ͘>ŽĐĂůĂĐĐĞƐƐƚŽƚŚĞƐŝƚĞŝƐƉƌŽǀŝĚĞĚǀŝĂĞĚĂƌ^ƚƌĞĞƚƚŽƚŚĞƐŽƵƚŚ ĂŶĚŽŶsŝĞǁǀĞŶƵĞƚŽƚŚĞĞĂƐƚ͖ƌĞĨĞƌƚŽ
ǆŚŝďŝƚϭ͗ZĞŐŝŽŶĂů>ŽĐĂƚŝŽŶDĂƉ ĂŶĚ
ǆŚŝďŝƚϮ͗WƌŽũĞĐƚsŝĐŝŶŝƚǇ
DĂƉ͘
dŚĞWƌŽũĞĐƚƐŝƚĞŝƐĂƌĞĐƚĂŶŐƵůĂƌůŽƚƚŚĂƚĐŽŶƚĂŝŶƐǀĂĐĂŶƚƉĂƌĐĞůƐ͘ dŚĞƐŝƚĞ͛ƐĞǆŝƐƚŝŶŐůĂŶĚƵƐĞĚĞƐŝŐŶĂƚŝŽŶŝƐ /ŶĚƵƐƚƌŝĂů͖ ƚŚĞĞǆŝƐƚŝŶŐǌŽŶŝŶŐŝƐ>ŝŐŚƚ/ŶĚƵƐƚƌŝĂů ;/>ͿĂŶĚ'ĞŶĞƌĂů/ŶĚƵƐƚƌŝĂů ;/'Ϳ͘/ŵŵĞĚŝĂƚĞƐƵƌƌŽƵŶĚŝŶŐ ƉƌŽƉĞƌƚŝĞƐĐŽŶƐŝƐƚŽĨŝŶĚƵƐƚƌŝĂůƵƐĞƐƚŽƚŚĞŶŽƌƚŚ͕ĞĂƐƚ͕ƐŽƵƚŚ͕ĂŶĚǁĞƐƚ͖ŵƵůƚŝͲĨĂŵŝůǇƌĞƐŝĚĞŶƚŝĂůƵƐĞƐĂƌĞ ůŽĐĂƚĞĚĨƵƌƚŚĞƌƚŽƚŚĞƐŽƵƚŚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ ĂůŽŶŐĞĚĂƌ^ƚƌĞĞƚ͘

1.2 Project Description
dŚĞƉƌŽƉŽƐĞĚWƌŽũĞĐƚǁŽƵůĚŝŶǀŽůǀĞƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨĂϭϳϱ͕Ϭϰϳ ƐƋƵĂƌĞͲĨŽŽƚ;ƐĨͿǁĂƌĞŚŽƵƐĞ ďƵŝůĚŝŶŐ ŽŶ ĂŶ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϳ͘ϰϳͲĂĐƌĞ ƐŝƚĞ͕ ǁŝƚŚ ĂƐƐŽĐŝĂƚĞĚ ĨĂĐŝůŝƚŝĞƐ ĂŶĚ ŝŵƉƌŽǀĞŵĞŶƚƐ ŝŶĐůƵĚŝŶŐ ĂƉƉƌŽǆŝŵĂƚĞůǇ ϰ͕ϱϬϬƐƋƵĂƌĞĨĞĞƚŽĨŽĨĨŝĐĞƐƉĂĐĞ͕ǀĞŚŝĐůĞƉĂƌŬŝŶŐ͕ůŽĂĚŝŶŐĚŽĐŬĚŽŽƌƐ͕ƚƌĂŝůĞƌƉĂƌŬŝŶŐ͕ŽŶƐŝƚĞůĂŶĚƐĐĂƉŝŶŐ͕ ĂŶĚƌĞůĂƚĞĚŽŶͲƐŝƚĞĂŶĚŽĨĨͲƐŝƚĞŝŵƉƌŽǀĞŵĞŶƚƐ͖ƌĞĨĞƌƚŽ ǆŚŝďŝƚϯ͗ŽŶĐĞƉƚƵĂů^ŝƚĞWůĂŶ͘dŚĞďƵŝůĚŝŶŐŚĞŝŐŚƚ
ǁŽƵůĚďĞĂĂƉƉƌŽǆŝŵĂƚĞůǇ ϰϱ ĨĞĞƚĂŶĚŚĂǀĞĂ&ůŽŽƌƌĞĂZĂƚŝŽ;&ZͿŽĨϬ͘ϱϰ͘ 248
Not to Scale EXHIBIT 1: Regional Location Map Bon View Project City of Ontario
West
Covina
Riverside Riverside
Los
Angeles Angeles
Santa Ana Santa Ana
Huntington Huntington
Beach
10 15
15 15
5 215
215
605
210
605
710
110
210
60 91
1 405

PROJECT PROJECT
SITE
Rialto
Perris
74 Ontario Ontario
249
Not to Scale
Cedar St Cedar St
evA wei V noBView AveevA sup maC Ave
EXHIBIT 2: Project Vicinity Map Bon View ProjectCity of Ontario

PROJECT PROJECT
AREA
250
Not to scale EXHIBIT 3: Conceptual Site Plan Bon View Project City of Ontario
251
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϱ
2 ENVIRONMENTAL SETTING

2.1 Climate
dŚĞŐĞŶĞƌĂůƌĞŐŝŽŶ ůŝĞƐŝŶƚŚĞƐĞŵŝͲƉĞƌŵĂŶĞŶƚŚŝŐŚͲƉƌĞƐƐƵƌĞǌŽŶĞŽĨƚŚĞĞĂƐƚĞƌŶWĂĐŝĨŝĐ͘dŚĞĐůŝŵĂƚĞŝƐ ŵŝůĚĂŶĚƚĞŵƉĞƌĞĚďǇĐŽŽůƐĞĂďƌĞĞǌĞƐ͘dŚĞƵƐƵĂůůǇŵŝůĚĐůŝŵĂƚŽůŽŐŝĐĂůƉĂƚƚĞƌŶŝƐŝŶƚĞƌƌƵƉƚĞĚŝŶĨƌĞƋƵĞŶƚůǇ ďǇƉĞƌŝŽĚƐŽĨĞǆƚƌĞŵĞůǇŚŽƚǁĞĂƚŚĞƌ͕ǁŝŶƚĞƌƐƚŽƌŵƐ͕Žƌ^ĂŶƚĂŶĂǁŝŶĚƐ͘dŚĞĞǆƚĞŶƚĂŶĚƐĞǀĞƌŝƚǇŽĨƚŚĞ Ăŝƌ ƉŽůůƵƚŝŽŶ ƉƌŽďůĞŵ ŝŶ ƚŚĞ ^ŽƵƚŚ ŽĂƐƚ ŝƌ ĂƐŝŶ ;^Ϳ ŝƐ ĂĨƵŶĐƚŝŽŶ ŽĨ ƚŚĞ ĂƌĞĂ͛Ɛ ŶĂƚƵƌĂů ƉŚǇƐŝĐĂů ĐŚĂƌĂĐƚĞƌŝƐƚŝĐƐ ;ǁĞĂƚŚĞƌĂŶĚ ƚŽƉŽŐƌĂƉŚǇͿ͕ĂƐǁĞůůĂƐŵĂŶͲŵĂĚĞŝŶĨůƵĞŶĐĞƐ ;ĚĞǀĞůŽƉŵĞŶƚƉĂƚƚĞƌŶƐĂŶĚ ůŝĨĞƐƚǇůĞͿ͘&ĂĐƚŽƌƐƐƵĐŚĂƐǁŝŶĚ͕ƐƵŶůŝŐŚƚ͕ ƚĞŵƉĞƌĂƚƵƌĞ͕ŚƵŵŝĚŝƚǇ͕ ƌĂŝŶĨĂůů͕ĂŶĚ ƚŽƉŽŐƌĂƉŚǇĂůůĂĨĨĞĐƚ ƚŚĞ ĂĐĐƵŵƵůĂƚŝŽŶĂŶĚͬŽƌĚŝƐƉĞƌƐŝŽŶŽĨƉŽůůƵƚĂŶƚƐƚŚƌŽƵŐŚŽƵƚƚŚĞ^͘dŚĞƐĞĨĂĐƚŽƌƐĂůŽŶŐǁŝƚŚĂƉƉůŝĐĂďůĞ ƌĞŐƵůĂƚŝŽŶƐĂƌĞĚŝƐĐƵƐƐĞĚďĞůŽǁ͘
dŚĞĂǀĞƌĂŐĞĂŶŶƵĂůƚĞŵƉĞƌĂƚƵƌĞǀĂƌŝĞƐůŝƚƚůĞƚŚƌŽƵŐŚŽƵƚƚŚĞ^͕ĂǀĞƌĂŐŝŶŐϳϱĚĞŐƌĞĞƐ&ĂŚƌĞŶŚĞŝƚ;Σ&Ϳ͘ ,ŽǁĞǀĞƌ͕ǁŝƚŚĂůĞƐƐͲƉƌŽŶŽƵŶĐĞĚŽĐĞĂŶŝĐŝŶĨůƵĞŶĐĞ͕ƚŚĞĞĂƐƚĞƌŶŝŶůĂŶĚƉŽƌƚŝŽŶƐŽĨƚŚĞ^ ƐŚŽǁŐƌĞĂƚĞƌ ǀĂƌŝĂďŝůŝƚǇŝŶĂŶŶƵĂů ŵŝŶŝŵƵŵĂŶĚŵĂǆŝŵƵŵƚĞŵƉĞƌĂƚƵƌĞƐ͘ůůƉŽƌƚŝŽŶƐŽĨƚŚĞ^ ŚĂǀĞŚĂĚƌĞĐŽƌĚĞĚ ƚĞŵƉĞƌĂƚƵƌĞƐŽǀĞƌϭϬϬΣ&ŝŶƌĞĐĞŶƚǇĞĂƌƐ͘

2.2 Meteorology
ůƚŚŽƵŐŚ ƚŚĞ^ ŚĂƐĂ ƐĞŵŝͲĂƌŝĚĐůŝŵĂƚĞ͕ ƚŚĞĂŝƌŶĞĂƌ ƚŚĞ ƐƵƌĨĂĐĞŝƐŵŽŝƐƚĚƵĞ ƚŽ ƚŚĞƉƌĞƐĞŶĐĞŽĨĂ ƐŚĂůůŽǁŵĂƌŝŶĞůĂǇĞƌ͘
ǆĐĞƉƚĨŽƌŝŶĨƌĞƋƵĞŶƚƉĞƌŝŽĚƐǁŚĞŶĚƌǇ͕ĐŽŶƚŝŶĞŶƚĂůĂŝƌŝƐďƌŽƵŐŚƚŝŶƚŽƚŚĞ^ ďǇ ŽĨĨƐŚŽƌĞǁŝŶĚƐ͕ƚŚĞŽĐĞĂŶĞĨĨĞĐƚŝƐĚŽŵŝŶĂŶƚ͘WĞƌŝŽĚƐǁŝƚŚŚĞĂǀǇĨŽŐĂƌĞĨƌĞƋƵĞŶƚ͕ĂŶĚůŽǁƐƚƌĂƚƵƐĐůŽƵĚƐ͕ ŽĐĐĂƐŝŽŶĂůůǇ ƌĞĨĞƌƌĞĚ ƚŽ ĂƐ ͞ŚŝŐŚ ĨŽŐ͕͟ ĂƌĞ Ă ĐŚĂƌĂĐƚĞƌŝƐƚŝĐ ĐůŝŵĂƚĞ ĨĞĂƚƵƌĞ͘ ŶŶƵĂů ĂǀĞƌĂŐĞ ƌĞůĂƚŝǀĞ ŚƵŵŝĚŝƚǇŝƐϳϬƉĞƌĐĞŶƚĂƚƚŚĞĐŽĂƐƚĂŶĚϱϳƉĞƌĐĞŶƚŝŶƚŚĞĞĂƐƚĞƌŶƉĂƌƚŽĨƚŚĞ^͘WƌĞĐŝƉŝƚĂƚŝŽŶŝŶƚŚĞ ^ ŝƐ ƚǇƉŝĐĂůůǇŶŝŶĞƚŽϭϰŝŶĐŚĞƐĂŶŶƵĂůůǇĂŶĚŝƐƌĂƌĞůǇŝŶƚŚĞĨŽƌŵŽĨƐŶŽǁŽƌŚĂŝůĚƵĞƚŽƚǇƉŝĐĂůůǇǁĂƌŵ ǁĞĂƚŚĞƌ͘dŚĞĨƌĞƋƵĞŶĐǇĂŶĚĂŵŽƵŶƚŽĨƌĂŝŶĨĂůůŝƐŐƌĞĂƚĞƌŝŶƚŚĞĐŽĂƐƚĂůĂƌĞĂƐŽĨƚŚĞ^͘ ƚĞŵƉĞƌĂƚƵƌĞŝŶǀĞƌƐŝŽŶŝƐĚĞĨŝŶĞĚĂƐĂŶŝŶĐƌĞĂƐĞŝŶƚĞŵƉĞƌĂƚƵƌĞǁŝƚŚŚĞŝŐŚƚ͕ŽƌƚŽƚŚĞůĂǇĞƌǁŝƚŚŝŶǁŚŝĐŚ ƐƵĐŚĂŶŝŶĐƌĞĂƐĞŽĐĐƵƌƐ͘dŚĞŚĞŝŐŚƚŽĨƚŚĞŝŶǀĞƌƐŝŽŶŝƐŝŵƉŽƌƚĂŶƚŝŶĚĞƚĞƌŵŝŶŝŶŐƉŽůůƵƚĂŶƚĐŽŶĐĞŶƚƌĂƚŝŽŶ͘ tŚĞŶƚŚĞŝŶǀĞƌƐŝŽŶŝƐĂƉƉƌŽǆŝŵĂƚĞůǇϮ͕ϱϬϬĨĞĞƚĂďŽǀĞƐĞĂůĞǀĞů͕ƚŚĞƐĞĂďƌĞĞǌĞƐĐĂƌƌǇƚŚĞƉŽůůƵƚĂŶƚƐŝŶůĂŶĚ ƚŽĞƐĐĂƉĞŽǀĞƌƚŚĞŵŽƵŶƚĂŝŶƐůŽƉĞƐŽƌƚŚƌŽƵŐŚƚŚĞƉĂƐƐĞƐ͘ƚĂŚĞŝŐŚƚŽĨϭ͕ϮϬϬĨĞĞƚ͕ƚŚĞƚĞƌƌĂŝŶƉƌĞǀĞŶƚƐ ƚŚĞƉŽůůƵƚĂŶƚƐĨƌŽŵĞŶƚĞƌŝŶŐƚŚĞƵƉƉĞƌĂƚŵŽƐƉŚĞƌĞ͕ƌĞƐƵůƚŝŶŐŝŶĂƐĞƚƚůĞŵĞŶƚŝŶƚŚĞĨŽŽƚŚŝůůĐŽŵŵƵŶŝƚŝĞƐ͘ ĞůŽǁϭ͕ϮϬϬĨĞĞƚ͕ƚŚĞŝŶǀĞƌƐŝŽŶƉƵƚƐĂƚŝŐŚƚůŝĚŽŶƉŽůůƵƚĂŶƚƐ͕ĐŽŶĐĞŶƚƌĂƚŝŶŐƚŚĞŵŝŶĂƐŚĂůůŽǁůĂǇĞƌŽǀĞƌ ƚŚĞ ĞŶƚŝƌĞ ^͘ hƐƵĂůůǇ͕ ŝŶǀĞƌƐŝŽŶƐ ĂƌĞ ůŽǁĞƌ ďĞĨŽƌĞ ƐƵŶƌŝƐĞ ƚŚĂŶ ĚƵƌŝŶŐ ƚŚĞ ĚĂǇ͘DŝǆŝŶŐ ŚĞŝŐŚƚƐ ĨŽƌ ŝŶǀĞƌƐŝŽŶƐĂƌĞůŽǁĞƌŝŶƚŚĞƐƵŵŵĞƌĂŶĚŵŽƌĞƉĞƌƐŝƐƚĞŶƚ͕ďĞŝŶŐƉĂƌƚůǇƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞ ŚŝŐŚůĞǀĞůƐŽĨ ŽǌŽŶĞ ;KϯͿŽďƐĞƌǀĞĚĚƵƌŝŶŐ ƐƵŵŵĞƌŵŽŶƚŚƐŝŶ ƚŚĞ^͘^ŵŽŐŝŶ ƐŽƵƚŚĞƌŶĂůŝĨŽƌŶŝĂŝƐŐĞŶĞƌĂůůǇ ƚŚĞ ƌĞƐƵůƚŽĨƚŚĞƐĞƚĞŵƉĞƌĂƚƵƌĞŝŶǀĞƌƐŝŽŶƐĐŽŵďŝŶŝŶŐǁŝƚŚĐŽĂƐƚĂůĚĂǇǁŝŶĚƐĂŶĚůŽĐĂůŵŽƵŶƚĂŝŶƐƚŽĐŽŶƚĂŝŶ ƚŚĞ ƉŽůůƵƚĂŶƚƐ ĨŽƌ ůŽŶŐ ƉĞƌŝŽĚƐ ŽĨ ƚŝŵĞ͕ ĂůůŽǁŝŶŐ ƚŚĞŵ ƚŽ ĨŽƌŵƐĞĐŽŶĚĂƌǇ ƉŽůůƵƚĂŶƚƐ ďǇ ƌĞĂĐƚŝŶŐ ǁŝƚŚ ƐƵŶůŝŐŚƚ͘dŚĞ^ ŚĂƐĂůŝŵŝƚĞĚĂďŝůŝƚǇƚŽĚŝƐƉĞƌƐĞƚŚĞƐĞƉŽůůƵƚĂŶƚƐĚƵĞƚŽƚǇƉŝĐĂůůǇůŽǁǁŝŶĚƐƉĞĞĚƐ͘ dŚĞ ĂƌĞĂ ŝŶ ǁŚŝĐŚ ƚŚĞ WƌŽũĞĐƚ ŝƐ ůŽĐĂƚĞĚ ŽĨĨĞƌƐ ĐůĞĂƌ ƐŬŝĞƐ ĂŶĚƐƵŶƐŚŝŶĞ ǇĞƚ ŝƐ Ɛƚŝůů ƐƵƐĐĞƉƚŝďůĞ ƚŽ Ăŝƌ ŝŶǀĞƌƐŝŽŶƐ͘dŚĞƐĞŝŶǀĞƌƐŝŽŶƐƚƌĂƉĂůĂǇĞƌŽĨƐƚĂŐŶĂŶƚĂŝƌŶĞĂƌƚŚĞŐƌŽƵŶĚ͕ǁŚĞƌĞŝƚŝƐƚŚĞŶĨƵƌƚŚĞƌůŽĂĚĞĚ ǁŝƚŚ ƉŽůůƵƚĂŶƚƐ͘dŚĞƐĞŝŶǀĞƌƐŝŽŶƐ ĐĂƵƐĞ ŚĂǌŝŶĞƐƐ͕ǁŚŝĐŚŝƐ ĐĂƵƐĞĚ ďǇŵŽŝƐƚƵƌĞ͕ ƐƵƐƉĞŶĚĞĚ ĚƵƐƚ͕ĂŶĚĂ ǀĂƌŝĞƚǇŽĨĐŚĞŵŝĐĂůĂĞƌŽƐŽůƐĞŵŝƚƚĞĚďǇƚƌƵĐŬƐ͕ĂƵƚŽŵŽďŝůĞƐ͕ĨƵƌŶĂĐĞƐ͕ĂŶĚŽƚŚĞƌƐŽƵƌĐĞƐ͘

252
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϲ

2.3 Toxic Air Contaminants
dŽǆŝĐŝƌŽŶƚĂŵŝŶĂŶƚƐ;dƐͿĂƌĞĂŝƌďŽƌŶĞƐƵďƐƚĂŶĐĞƐ ĐĂƉĂďůĞŽĨ ĐĂƵƐŝŶŐƐŚŽƌƚͲƚĞƌŵ;ĂĐƵƚĞͿĂŶĚ ůŽŶŐͲ ƚĞƌŵ ;ĐŚƌŽŶŝĐŽƌĐĂƌĐŝŶŽŐĞŶŝĐ͕ŝ͘Ğ͘ ĐĂŶĐĞƌĐĂƵƐŝŶŐͿĂĚǀĞƌƐĞŚƵŵĂŶ ŚĞĂůƚŚĞĨĨĞĐƚƐ ;ŝ͘Ğ͘ ŝŶũƵƌǇŽƌŝůůŶĞƐƐͿ͘ dƐŝŶĐůƵĚĞ ďŽƚŚŽƌŐĂŶŝĐĂŶĚŝŶŽƌŐĂŶŝĐ ĐŚĞŵŝĐĂů ƐƵďƐƚĂŶĐĞƐ͘dŚĞǇŵĂǇ ďĞĞŵŝƚƚĞĚ ĨƌŽŵĂǀĂƌŝĞƚǇŽĨ ĐŽŵŵŽŶ ƐŽƵƌĐĞƐ ŝŶĐůƵĚŝŶŐ ŐĂƐŽůŝŶĞ ƐƚĂƚŝŽŶƐ͕ ĂƵƚŽŵŽďŝůĞƐ͕ ĚƌǇ ĐůĞĂŶĞƌƐ͕ ŝŶĚƵƐƚƌŝĂů ŽƉĞƌĂƚŝŽŶƐ͕ ĂŶĚ ƉĂŝŶƚŝŶŐŽƉĞƌĂƚŝŽŶƐ͘dŚĞĐƵƌƌĞŶƚĂůŝĨŽƌŶŝĂůŝƐƚŽĨdƐŝŶĐůƵĚĞƐĂƉƉƌŽǆŝŵĂƚĞůǇϮϬϬĐŽŵƉŽƵŶĚƐ͕ŝŶĐůƵĚŝŶŐ ƉĂƌƚŝĐƵůĂƚĞĞŵŝƐƐŝŽŶƐĨƌŽŵĚŝĞƐĞůͲĨƵĞůĞĚĞŶŐŝŶĞƐ͘
,ĂǌĂƌĚŽƵƐŝƌWŽůůƵƚĂŶƚƐ;,WͿŝƐĂƚĞƌŵƵƐĞĚďǇƚŚĞ&ĞĚĞƌĂůůĞĂŶŝƌĐƚ;&ͿƚŚĂƚŝŶĐůƵĚĞƐĂǀĂƌŝĞƚǇ ŽĨ ƉŽůůƵƚĂŶƚƐ ŐĞŶĞƌĂƚĞĚ Žƌ ĞŵŝƚƚĞĚ ďǇ ŝŶĚƵƐƚƌŝĂů ƉƌŽĚƵĐƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐ͘ /ĚĞŶƚŝĨŝĞĚ ĂƐ dƐ ƵŶĚĞƌ ƚŚĞ ĂůŝĨŽƌŶŝĂůĞĂŶŝƌĐƚ;Ϳ͕ƚĞŶŚĂǀĞďĞĞŶƐŝŶŐůĞĚŽƵƚƚŚƌŽƵŐŚĂŵďŝĞŶƚĂŝƌƋƵĂůŝƚǇĚĂƚĂĂƐďĞŝŶŐƚŚĞ ŵŽƐƚƐƵďƐƚĂŶƚŝĂůŚĞĂůƚŚƌŝƐŬŝŶĂůŝĨŽƌŶŝĂ͘ŝƌĞĐƚĞǆƉŽƐƵƌĞƚŽƚŚĞƐĞƉŽůůƵƚĂŶƚƐŚĂƐďĞĞŶƐŚŽǁŶƚŽĐĂƵƐĞ ĐĂŶĐĞƌ͕ďŝƌƚŚĚĞĨĞĐƚƐ͕ĚĂŵĂŐĞƚŽƚŚĞďƌĂŝŶĂŶĚŶĞƌǀŽƵƐƐǇƐƚĞŵ͕ĂŶĚƌĞƐƉŝƌĂƚŽƌǇĚŝƐŽƌĚĞƌƐ͘dŚĞĂůŝĨŽƌŶŝĂ ŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ;ZͿƉƌŽǀŝĚĞƐĞŵŝƐƐŝŽŶŝŶǀĞŶƚŽƌŝĞƐĨŽƌŽŶůǇƚŚĞůĂƌŐĞƌĂŝƌďĂƐŝŶƐ͘ dƐĚŽŶŽƚŚĂǀĞĂŵďŝĞŶƚĂŝƌƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐďĞĐĂƵƐĞŶŽƐĂĨĞůĞǀĞůƐŽĨdƐĐĂŶďĞĚĞƚĞƌŵŝŶĞĚ͘/ŶƐƚĞĂĚ͕ d ŝŵƉĂĐƚƐ ĂƌĞ ĞǀĂůƵĂƚĞĚ ďǇ ĐĂůĐƵůĂƚŝŶŐ ƚŚĞ ŚĞĂůƚŚ ƌŝƐŬƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ Ă ŐŝǀĞŶ ĞǆƉŽƐƵƌĞ͘ dŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞŝƌdŽǆŝĐ͞,Žƚ^ƉŽƚƐ͟/ŶĨŽƌŵĂƚŝŽŶĂŶĚƐƐĞƐƐŵĞŶƚĐƚ;ƐƐĞŵďůǇŝůů΀΁ϮϱϴϴͿĂƉƉůǇ ƚŽĨĂĐŝůŝƚŝĞƐƚŚĂƚƵƐĞ͕ƉƌŽĚƵĐĞ͕ŽƌĞŵŝƚƚŽǆŝĐĐŚĞŵŝĐĂůƐ͘&ĂĐŝůŝƚŝĞƐƐƵďũĞĐƚƚŽƚŚĞƚŽǆŝĐĞŵŝƐƐŝŽŶŝŶǀĞŶƚŽƌǇ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ƚŚĞ ĂĐƚ ŵƵƐƚ ƉƌĞƉĂƌĞ ĂŶĚ ƐƵďŵŝƚ ƚŽǆŝĐ ĞŵŝƐƐŝŽŶ ŝŶǀĞŶƚŽƌǇ ƉůĂŶƐ ĂŶĚ ƌĞƉŽƌƚƐ͕ ĂŶĚ ƉĞƌŝŽĚŝĐĂůůǇƵƉĚĂƚĞƚŚŽƐĞƌĞƉŽƌƚƐ͘
dŽǆŝĐĐŽŶƚĂŵŝŶĂŶƚƐŽĨƚĞŶƌĞƐƵůƚ ĨƌŽŵ ĨƵŐŝƚŝǀĞĞŵŝƐƐŝŽŶƐĚƵƌŝŶŐĨƵĞůƐƚŽƌĂŐĞĂŶĚƚƌĂŶƐĨĞƌĂĐƚŝǀŝƚŝĞƐ͕ĂŶĚ ĨƌŽŵ ůĞĂŬŝŶŐ ǀĂůǀĞƐ ĂŶĚ ƉŝƉĞƐ͘ &Žƌ ĞǆĂŵƉůĞ͕ ƚŚĞ ĞůĞĐƚƌŽŶŝĐƐ ŝŶĚƵƐƚƌǇ͕ ŝŶĐůƵĚŝŶŐ ƐĞŵŝĐŽŶĚƵĐƚŽƌ ŵĂŶƵĨĂĐƚƵƌŝŶŐ͕ƵƐĞƐŚŝŐŚůǇƚŽǆŝĐĐŚůŽƌŝŶĂƚĞĚƐŽůǀĞŶƚƐŝŶƐĞŵŝĐŽŶĚƵĐƚŽƌƉƌŽĚƵĐƚŝŽŶƉƌŽĐĞƐƐĞƐ͘^ŽƵƌĐĞƐŽĨ Ăŝƌ ƚŽǆŝĐƐ ŐŽ ďĞǇŽŶĚ ŝŶĚƵƐƚƌǇ͕ ŚŽǁĞǀĞƌ͘ ƵƚŽŵŽďŝůĞĞǆŚĂƵƐƚ ĂůƐŽ ĐŽŶƚĂŝŶƐ ƚŽǆŝĐ Ăŝƌ ƉŽůůƵƚĂŶƚƐ ƐƵĐŚ ĂƐ ďĞŶǌĞŶĞ ĂŶĚ ϭ͕ϯͲďƵƚĂĚŝĞŶĞ͘ /Ŷ ĂůŝĨŽƌŶŝĂ͕ ŽŶͲƌŽĂĚ ĚŝĞƐĞůͲĨƵĞůĞĚ ĞŶŐŝŶĞƐ ĐŽŶƚƌŝďƵƚĞ ĂƉƉƌŽǆŝŵĂƚĞůǇ Ϯϰ ƉĞƌĐĞŶƚ ŽĨƚŚĞƐƚĂƚĞǁŝĚĞƚŽƚĂů͕ǁŝƚŚĂŶĂĚĚŝƚŝŽŶĂůϳϭƉĞƌĐĞŶƚĂƚƚƌŝďƵƚĞĚƚŽŽƚŚĞƌŵŽďŝůĞƐŽƵƌĐĞƐƐƵĐŚĂƐ ĐŽŶƐƚƌƵĐƚŝŽŶĂŶĚŵŝŶŝŶŐĞƋƵŝƉŵĞŶƚ͕ĂŐƌŝĐƵůƚƵƌĂůĞƋƵŝƉŵĞŶƚ͕ĂŶĚƚƌĂŶƐƉŽƌƚƌĞĨƌŝŐĞƌĂƚŝŽŶƵŶŝƚƐ͘^ƚĂƚŝŽŶĂƌǇ ƐŽƵƌĐĞƐĐŽŶƚƌŝďƵƚĞĂďŽƵƚϱƉĞƌĐĞŶƚŽĨ ƚŽƚĂůWD͘/ƚƐŚŽƵůĚďĞŶŽƚĞĚƚŚĂƚZŚĂƐĚĞǀĞůŽƉĞĚƐĞǀĞƌĂů ƉůĂŶƐ ĂŶĚ ƉƌŽŐƌĂŵƐ ƚŽ ƌĞĚƵĐĞ ĚŝĞƐĞů ĞŵŝƐƐŝŽŶƐ ƐƵĐŚ ĂƐ ƚŚĞ ŝĞƐĞů ZŝƐŬ ZĞĚƵĐƚŝŽŶ WůĂŶ ;ZZWͿ͕ ƚŚĞ ^ƚĂƚĞǁŝĚĞWŽƌƚĂďůĞ
ƋƵŝƉŵĞŶƚZĞŐŝƐƚƌĂƚŝŽŶWƌŽŐƌĂŵ ;W
ZWͿ͕ĂŶĚƚŚĞŝĞƐĞůKĨĨͲZŽĂĚZĞƉŽƌƚŝŶŐ^ǇƐƚĞŵ
;KKZ^Ϳ͘dŚĞW
ZWĂŶĚKKZ^ƉƌŽŐƌĂŵƐĂůůŽǁŽǁŶĞƌƐŽƌŽƉĞƌĂƚŽƌƐŽĨƉŽƌƚĂďůĞĞŶŐŝŶĞƐĂŶĚĐĞƌƚĂŝŶŽƚŚĞƌ ƚǇƉĞƐŽĨĞƋƵŝƉŵĞŶƚĐĂŶ ƌĞŐŝƐƚĞƌ ƚŚĞŝƌƵŶŝƚƐŝŶŽƌĚĞƌ ƚŽŽƉĞƌĂƚĞ ƚŚĞŝƌĞƋƵŝƉŵĞŶƚ ƚŚƌŽƵŐŚŽƵƚĂůŝĨŽƌŶŝĂ ǁŝƚŚŽƵƚŚĂǀŝŶŐƚŽŽďƚĂŝŶŝŶĚŝǀŝĚƵĂůƉĞƌŵŝƚƐĨƌŽŵůŽĐĂůĂŝƌĚŝƐƚƌŝĐƚƐ͘ ŝĞƐĞůĞǆŚĂƵƐƚĂŶĚŵĂŶǇŝŶĚŝǀŝĚƵĂůƐƵďƐƚĂŶĐĞƐĐŽŶƚĂŝŶĞĚŝŶŝƚ;ŝŶĐůƵĚŝŶŐĂƌƐĞŶŝĐ͕ďĞŶǌĞŶĞ͕ĨŽƌŵĂůĚĞŚǇĚĞ͕ ĂŶĚ ŶŝĐŬĞůͿ ŚĂǀĞ ƚŚĞ ƉŽƚĞŶƚŝĂů ƚŽ ĐŽŶƚƌŝďƵƚĞ ƚŽŵƵƚĂƚŝŽŶƐ ŝŶ ĐĞůůƐ ƚŚĂƚ ĐĂŶ ůĞĂĚ ƚŽ ĐĂŶĐĞƌ͘ >ŽŶŐͲƚĞƌŵ ĞǆƉŽƐƵƌĞƚŽĚŝĞƐĞůĞǆŚĂƵƐƚƉĂƌƚŝĐůĞƐƉŽƐĞƐƚŚĞŚŝŐŚĞƐƚĐĂŶĐĞƌƌŝƐŬŽĨĂŶǇdĞǀĂůƵĂƚĞĚďǇK ,,͘Z
ĞƐƚŝŵĂƚĞƐƚŚĂƚĂďŽƵƚϳϬƉĞƌĐĞŶƚŽĨƚŚĞĐĂŶĐĞƌƌŝƐŬƚŚĂƚƚŚĞĂǀĞƌĂŐĞĂůŝĨŽƌŶŝĂŶĨĂĐĞƐĨƌŽŵďƌĞĂƚŚŝŶŐƚŽǆŝĐ ĂŝƌƉŽůůƵƚĂŶƚƐƐƚĞŵƐĨƌŽŵĚŝĞƐĞůĞǆŚĂƵƐƚƉĂƌƚŝĐůĞƐ͘
/ŶŝƚƐĐŽŵƉƌĞŚĞŶƐŝǀĞĂƐƐĞƐƐŵĞŶƚŽĨĚŝĞƐĞůĞǆŚĂƵƐƚ͕K
,,ĂŶĂůǇǌĞĚŵŽƌĞƚŚĂŶϯϬƐƚƵĚŝĞƐŽĨƉĞŽƉůĞǁŚŽ
ǁŽƌŬĞĚĂƌŽƵŶĚĚŝĞƐĞůĞƋƵŝƉŵĞŶƚ͕ŝŶĐůƵĚŝŶŐƚƌƵĐŬĚƌŝǀĞƌƐ͕ƌĂŝůƌŽĂĚǁŽƌŬĞƌƐ͕ĂŶĚĞƋƵŝƉŵĞŶƚŽƉĞƌĂƚŽƌƐ͘dŚĞ ƐƚƵĚŝĞƐƐŚŽǁĞĚƚŚĞƐĞǁŽƌŬĞƌƐǁĞƌĞŵŽƌĞůŝŬĞůǇƚŽĚĞǀĞůŽƉůƵŶŐĐĂŶĐĞƌƚŚĂŶǁŽƌŬĞƌƐ ŶŽƚĞǆƉŽƐĞĚ ƚŽĚŝĞƐĞů ĞŵŝƐƐŝŽŶƐ͘dŚĞƐĞƐƚƵĚŝĞƐƉƌŽǀŝĚĞƐƚƌŽŶŐĞǀŝĚĞŶĐĞƚŚĂƚůŽŶŐͲƚĞƌŵŽĐĐƵƉĂƚŝŽŶĂůĞǆƉŽƐƵƌĞƚŽĚŝĞƐĞůĞǆŚĂƵƐƚ ŝŶĐƌĞĂƐĞƐƚŚĞƌŝƐŬŽĨůƵŶŐĐĂŶĐĞƌ͘hƐŝŶŐŝŶĨŽƌŵĂƚŝŽŶĨƌŽŵK ,,͛ƐĂƐƐĞƐƐŵĞŶƚ͕ZĞƐƚŝŵĂƚĞƐƚŚĂƚĚŝĞƐĞů
253
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϳ
ƉĂƌƚŝĐůĞůĞǀĞůƐŵĞĂƐƵƌĞĚ ŝŶĂůŝĨŽƌŶŝĂ͛ƐĂŝƌŝŶϮϬϬϬĐŽƵůĚĐĂƵƐĞϱϰϬ͞ĞǆĐĞƐƐ͟ĐĂŶĐĞƌƐŝŶĂƉŽƉƵůĂƚŝŽŶŽĨϭ ŵŝůůŝŽŶ ƉĞŽƉůĞ ŽǀĞƌ Ă ϳϬͲǇĞĂƌ ůŝĨĞƚŝŵĞ͘ KƚŚĞƌ ƌĞƐĞĂƌĐŚĞƌƐ ĂŶĚ ƐĐŝĞŶƚŝĨŝĐ ŽƌŐĂŶŝǌĂƚŝŽŶƐ͕ ŝŶĐůƵĚŝŶŐ ƚŚĞ EĂƚŝŽŶĂů/ŶƐƚŝƚƵƚĞ ĨŽƌKĐĐƵƉĂƚŝŽŶĂů^ĂĨĞƚǇĂŶĚ,ĞĂůƚŚ͕ŚĂǀĞĐĂůĐƵůĂƚĞĚĐĂŶĐĞƌƌŝƐŬƐ ĨƌŽŵĚŝĞƐĞůĞǆŚĂƵƐƚ ƐŝŵŝůĂƌƚŽ ƚŚŽƐĞĚĞǀĞůŽƉĞĚďǇK
,,ĂŶĚZ͘

ǆƉŽƐƵƌĞƚŽĚŝĞƐĞůĞǆŚĂƵƐƚĐĂŶŚĂǀĞŝŵŵĞĚŝĂƚĞŚĞĂůƚŚĞĨĨĞĐƚƐ͘ŝĞƐĞůĞǆŚĂƵƐƚĐĂŶŝƌƌŝƚĂƚĞƚŚĞĞǇĞƐ͕ŶŽƐĞ͕ ƚŚƌŽĂƚ͕ ĂŶĚ ůƵŶŐƐ͕ ĂŶĚ ŝƚ ĐĂŶ ĐĂƵƐĞ ĐŽƵŐŚƐ͕ ŚĞĂĚĂĐŚĞƐ͕ ůŝŐŚƚŚĞĂĚĞĚŶĞƐƐ͕ ĂŶĚ ŶĂƵƐĞĂ͘ /Ŷ ƐƚƵĚŝĞƐ ǁŝƚŚ ŚƵŵĂŶǀŽůƵŶƚĞĞƌƐ͕ĚŝĞƐĞůĞǆŚĂƵƐƚƉĂƌƚŝĐůĞƐŵĂĚĞƉĞŽƉůĞǁŝƚŚĂůůĞƌŐŝĞƐŵŽƌĞƐƵƐĐĞƉƚŝďůĞƚŽƚŚĞŵĂƚĞƌŝĂůƐ ƚŽǁŚŝĐŚƚŚĞǇĂƌĞĂůůĞƌŐŝĐ͕ƐƵĐŚĂƐĚƵƐƚĂŶĚƉŽůůĞŶ͘
ǆƉŽƐƵƌĞƚŽĚŝĞƐĞůĞǆŚĂƵƐƚĂůƐŽĐĂƵƐĞƐŝŶĨůĂŵŵĂƚŝŽŶ
ŝŶƚŚĞůƵŶŐƐ͕ǁŚŝĐŚŵĂǇĂŐŐƌĂǀĂƚĞĐŚƌŽŶŝĐƌĞƐƉŝƌĂƚŽƌǇƐǇŵƉƚŽŵƐĂŶĚŝŶĐƌĞĂƐĞƚŚĞĨƌĞƋƵĞŶĐǇŽƌŝŶƚĞŶƐŝƚǇ ŽĨĂƐƚŚŵĂĂƚƚĂĐŬƐ͘
ŝĞƐĞůĞŶŐŝŶĞƐĂƌĞĂŵĂũŽƌƐŽƵƌĐĞŽĨĨŝŶĞƉĂƌƚŝĐƵůĂƚĞƉŽůůƵƚŝŽŶ͘dŚĞĞůĚĞƌůǇĂŶĚƉĞŽƉůĞǁŝƚŚĞŵƉŚǇƐĞŵĂ͕ ĂƐƚŚŵĂ͕ĂŶĚĐŚƌŽŶŝĐŚĞĂƌƚĂŶĚůƵŶŐĚŝƐĞĂƐĞĂƌĞ ĞƐƉĞĐŝĂůůǇƐĞŶƐŝƚŝǀĞƚŽĨŝŶĞͲƉĂƌƚŝĐůĞƉŽůůƵƚŝŽŶ͘EƵŵĞƌŽƵƐ ƐƚƵĚŝĞƐŚĂǀĞůŝŶŬĞĚĞůĞǀĂƚĞĚƉĂƌƚŝĐůĞůĞǀĞůƐŝŶƚŚĞĂŝƌƚŽŝŶĐƌĞĂƐĞĚŚŽƐƉŝƚĂůĂĚŵŝƐƐŝŽŶƐ͕ĞŵĞƌŐĞŶĐǇƌŽŽŵ ǀŝƐŝƚƐ͕ĂƐƚŚŵĂĂƚƚĂĐŬƐ͕ĂŶĚƉƌĞŵĂƚƵƌĞĚĞĂƚŚƐĂŵŽŶŐƚŚŽƐĞƐƵĨĨĞƌŝŶŐĨƌŽŵƌĞƐƉŝƌĂƚŽƌǇƉƌŽďůĞŵƐ͘ĞĐĂƵƐĞ ĐŚŝůĚƌĞŶ͛ƐůƵŶŐƐĂŶĚƌĞƐƉŝƌĂƚŽƌǇƐǇƐƚĞŵƐĂƌĞƐƚŝůůĚĞǀĞůŽƉŝŶŐ͕ƚŚĞǇĂƌĞĂůƐŽŵŽƌĞƐƵƐĐĞƉƚŝďůĞƚŚĂŶŚĞĂůƚŚǇ ĂĚƵůƚƐ ƚŽ ĨŝŶĞ ƉĂƌƚŝĐůĞƐ͘
ǆƉŽƐƵƌĞ ƚŽ ĨŝŶĞ ƉĂƌƚŝĐůĞƐŝƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚŝŶĐƌĞĂƐĞĚ ĨƌĞƋƵĞŶĐǇŽĨ ĐŚŝůĚŚŽŽĚ ŝůůŶĞƐƐĞƐĂŶĚĐĂŶĂůƐŽƌĞĚƵĐĞůƵŶŐ ĨƵŶĐƚŝŽŶŝŶ ĐŚŝůĚƌĞŶ͘/ŶĂůŝĨŽƌŶŝĂ͕ĚŝĞƐĞůĞǆŚĂƵƐƚƉĂƌƚŝĐůĞƐŚĂǀĞďĞĞŶ ŝĚĞŶƚŝĨŝĞĚĂƐĂĐĂƌĐŝŶŽŐĞŶ͘

2.4 Sensitive Receptors
^ĞŶƐŝƚŝǀĞƉŽƉƵůĂƚŝŽŶƐĂƌĞŵŽƌĞƐƵƐĐĞƉƚŝďůĞƚŽƚŚĞĞĨĨĞĐƚƐŽĨĂŝƌƉŽůůƵƚŝŽŶƚŚĂŶŝƐƚŚĞŐĞŶĞƌĂůƉŽƉƵůĂƚŝŽŶ͘ ^ĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐƚŚĂƚĂƌĞŝŶƉƌŽǆŝŵŝƚǇƚŽůŽĐĂůŝǌĞĚƐŽƵƌĐĞƐŽĨƚŽǆŝĐƐĂƌĞŽĨƉĂƌƚŝĐƵůĂƌĐŽŶĐĞƌŶ͘>ĂŶĚƵƐĞƐ ĐŽŶƐŝĚĞƌĞĚ ƐĞŶƐŝƚŝǀĞ ƌĞĐĞƉƚŽƌƐ ŝŶĐůƵĚĞ ƌĞƐŝĚĞŶĐĞƐ͕ ƐĐŚŽŽůƐ͕ ƉůĂǇŐƌŽƵŶĚƐ͕ ĐŚŝůĚĐĂƌĞ ĐĞŶƚĞƌƐ͕ ůŽŶŐͲƚĞƌŵ ŚĞĂůƚŚĐĂƌĞĨĂĐŝůŝƚŝĞƐ͕ƌĞŚĂďŝůŝƚĂƚŝŽŶĐĞŶƚĞƌƐ͕ĐŽŶǀĂůĞƐĐĞŶƚĐĞŶƚĞƌƐ͕ĂŶĚƌĞƚŝƌĞŵĞŶƚŚŽŵĞƐ͘^ĞŶƐŝƚŝǀĞůĂŶĚ ƵƐĞƐƐƵƌƌŽƵŶĚŝŶŐƚŚĞWƌŽũĞĐƚĐŽŶƐŝƐƚŽĨ ŵƵůƚŝͲĨĂŵŝůǇĂŶĚƐŝŶŐůĞͲĨĂŵŝůǇƌĞƐŝĚĞŶĐĞƐ͘dŚĞŶĞĂƌĞƐƚƐĞŶƐŝƚŝǀĞ ůĂŶĚƵƐĞƐŶĞĂƌĞƐƚƚŽƚŚĞWƌŽũĞĐƚĂƌĞƐŚŽǁŶŝŶdĂďůĞϭ͗^ĞŶƐŝƚŝǀĞZĞĐĞƉƚŽƌƐ͘ dĂďůĞϭ͗^ĞŶƐŝƚŝǀĞZĞĐĞƉƚŽƌƐ
ZĞĐĞƉƚŽƌĞƐĐƌŝƉƚŝŽŶ ŝƐƚĂŶĐĞĂŶĚŝƌĞĐƚŝŽŶĨƌŽŵƚŚĞWƌŽũĞĐƚ DƵůƚŝͲ&ĂŵŝůǇZĞƐŝĚĞŶĐĞƐ ϭϱϱ ĨĞĞƚ ƚŽƚŚĞƐŽƵƚŚ
^ŝŶŐůĞͲ&ĂŵŝůǇZĞƐŝĚĞŶĐĞƐ ϰϴϬ ĨĞĞƚƚŽƚŚĞƐŽƵƚŚǁĞƐƚ
DƵůƚŝͲ&ĂŵŝůǇZĞƐŝĚĞŶĐĞƐ ϳϯϬ ĨĞĞƚƚŽƚŚĞǁĞƐƚ
^ŽƵƌĐĞ͗'ŽŽŐůĞ
ĂƌƚŚ͕ϮϬϮϭ͘
254
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϴ
3 REGULATORY SETTING

3.1 Federal
&ĞĚĞƌĂůůĞĂŶŝƌĐƚ
dŚĞ& ǁĂƐĂŵĞŶĚĞĚŝŶϭϵϵϬƚŽĂĚĚƌĞƐƐƚŚĞŶƵŵĞƌŽƵƐ ĂŝƌƉŽůůƵƚĂŶƚƐƚŚĂƚĂƌĞŬŶŽǁŶƚŽĐĂƵƐĞŽƌŵĂǇ ƌĞĂƐŽŶĂďůǇďĞĂŶƚŝĐŝƉĂƚĞĚƚŽĐĂƵƐĞĂĚǀĞƌƐĞĞĨĨĞĐƚƐ ƚŽŚƵŵĂŶŚĞĂůƚŚŽƌĂĚǀĞƌƐĞĞŶǀŝƌŽŶŵĞŶƚĂůĞĨĨĞĐƚƐ͘ ϭϴϴ ƐƉĞĐŝĨŝĐ ƉŽůůƵƚĂŶƚƐ ĂŶĚ ĐŚĞŵŝĐĂů ŐƌŽƵƉƐ ǁĞƌĞ ŝŶŝƚŝĂůůǇ ŝĚĞŶƚŝĨŝĞĚ ĂƐ ,WƐ͕ ĂŶĚ ƚŚĞ ůŝƐƚ ŚĂƐ ďĞĞŶ ŵŽĚŝĨŝĞĚŽǀĞƌƚŝŵĞ͘dŚĞ&ŵĞŶĚŵĞŶƚƐŝŶĐůƵĚĞĚŶĞǁƌĞŐƵůĂƚŽƌǇƉƌŽŐƌĂŵƐƚŽĐŽŶƚƌŽůĂĐŝĚĚĞƉŽƐŝƚŝŽŶ ĂŶĚĨŽƌƚŚĞŝƐƐƵĂŶĐĞŽĨƐƚĂƚŝŽŶĂƌǇƐŽƵƌĐĞŽƉĞƌĂƚŝŶŐƉĞƌŵŝƚƐ͘ /ŶϮϬϬϭ͕ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ
ŶǀŝƌŽŶŵĞŶƚĂůWƌŽƚĞĐƚŝŽŶŐĞŶĐǇ;
WͿŝƐƐƵĞĚŝƚƐĨŝƌƐƚDŽďŝůĞ^ŽƵƌĐĞŝƌdŽǆŝĐƐ
ZƵůĞ͕ ǁŚŝĐŚ ŝĚĞŶƚŝĨŝĞĚ Ϯϭ ŵŽďŝůĞ ƐŽƵƌĐĞ Ăŝƌ ƚŽǆŝĐ ;D^dͿ ĐŽŵƉŽƵŶĚƐ ĂƐ ďĞŝŶŐ ,WƐ ƚŚĂƚ ƌĞƋƵŝƌĞĚ ƌĞŐƵůĂƚŝŽŶ͘ƐƵďƐĞƚŽĨƐŝǆŽĨƚŚĞƐĞD^dĐŽŵƉŽƵŶĚƐǁĞƌĞŝĚĞŶƚŝĨŝĞĚĂƐŚĂǀŝŶŐ ƚŚĞŐƌĞĂƚĞƐƚŝŶĨůƵĞŶĐĞŽŶ ŚĞĂůƚŚ ĂŶĚ ŝŶĐůƵĚĞĚ ďĞŶǌĞŶĞ͕ ϭ͕ϯͲďƵƚĂĚŝĞŶĞ͕ ĨŽƌŵĂůĚĞŚǇĚĞ͕ ĂĐƌŽůĞŝŶ͕ ĂĐĞƚĂůĚĞŚǇĚĞ͕ ĂŶĚ WD͘ DŽƌĞ ƌĞĐĞŶƚůǇ͕ƚŚĞ
WŝƐƐƵĞĚĂƐĞĐŽŶĚD^dZƵůĞŝŶ&ĞďƌƵĂƌǇϮϬϬϳ͕ǁŚŝĐŚŐĞŶĞƌĂůůǇƐƵƉƉŽƌƚĞĚƚŚĞĨŝŶĚŝŶŐƐŝŶ ƚŚĞ ĨŝƌƐƚ ƌƵůĞ ĂŶĚ ƉƌŽǀŝĚĞĚ ĂĚĚŝƚŝŽŶĂů ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ŽĨ ĐŽŵƉŽƵŶĚƐ ŚĂǀŝŶŐ ƚŚĞ ŐƌĞĂƚĞƐƚ ŝŵƉĂĐƚ ŽŶ ŚĞĂůƚŚ͘dŚĞƌƵůĞĂůƐŽŝĚĞŶƚŝĨŝĞĚƐĞǀĞƌĂůĞŶŐŝŶĞĞŵŝƐƐŝŽŶĐĞƌƚŝĨŝĐĂƚŝŽŶƐƚĂŶĚĂƌĚƐƚŚĂƚŵƵƐƚďĞŝŵƉůĞŵĞŶƚĞĚ͘ hŶůŝŬĞƚŚĞĐƌŝƚĞƌŝĂƉŽůůƵƚĂŶƚƐ͕ƚŽǆŝĐƐĚŽŶŽƚŚĂǀĞEĂƚŝŽŶĂůŵďŝĞŶƚŝƌYƵĂůŝƚǇ^ƚĂŶĚĂƌĚƐ;EY^ͿŵĂŬŝŶŐ ĞǀĂůƵĂƚŝŽŶŽĨƚŚĞŝƌŝŵƉĂĐƚƐŵŽƌĞƐƵďũĞĐƚŝǀĞ͘
EĂƚŝŽŶĂů
ŵŝƐƐŝŽŶƐ^ƚĂŶĚĂƌĚƐ ĨŽƌ,ĂǌĂƌĚŽƵƐŝƌWŽůůƵƚĂŶƚƐ ;E
^,WƐͿǁĞƌĞŝŶĐŽƌƉŽƌĂƚĞĚŝŶƚŽĂŐƌĞĂƚůǇ
ĞǆƉĂŶĚĞĚƉƌŽŐƌĂŵĨŽƌĐŽŶƚƌŽůůŝŶŐƚŽǆŝĐĂŝƌƉŽůůƵƚĂŶƚƐ͘dŚĞƉƌŽǀŝƐŝŽŶƐĨŽƌĂƚƚĂŝŶŵĞŶƚ ĂŶĚŵĂŝŶƚĞŶĂŶĐĞŽĨ ƚŚĞ EY^ ǁĞƌĞ ƐƵďƐƚĂŶƚŝĂůůǇ ŵŽĚŝĨŝĞĚ ĂŶĚ ĞǆƉĂŶĚĞĚ͘ KƚŚĞƌ ƌĞǀŝƐŝŽŶƐ ŝŶĐůƵĚĞĚ ƉƌŽǀŝƐŝŽŶƐ ƌĞŐĂƌĚŝŶŐ ƐƚƌĂƚŽƐƉŚĞƌŝĐŽǌŽŶĞƉƌŽƚĞĐƚŝŽŶ͕ŝŶĐƌĞĂƐĞĚĞŶĨŽƌĐĞŵĞŶƚĂƵƚŚŽƌŝƚǇ͕ĂŶĚĞǆƉĂŶĚĞĚƌĞƐĞĂƌĐŚƉƌŽŐƌĂŵƐ͘ ^ĞĐƚŝŽŶϭϭϮŽĨƚŚĞ&ŵĞŶĚŵĞŶƚƐŐŽǀĞƌŶƐƚŚĞĨĞĚĞƌĂůĐŽŶƚƌŽůƉƌŽŐƌĂŵĨŽƌ,WƐ͘E ^,WƐĂƌĞŝƐƐƵĞĚ
ƚŽůŝŵŝƚ ƚŚĞ ƌĞůĞĂƐĞŽĨ ƐƉĞĐŝĨŝĞĚ,WƐ ĨƌŽŵ ƐƉĞĐŝĨŝĐŝŶĚƵƐƚƌŝĂů ƐĞĐƚŽƌƐ͘dŚĞƐĞ ƐƚĂŶĚĂƌĚƐĂƌĞ ƚĞĐŚŶŽůŽŐǇͲ ďĂƐĞĚ͕ŵĞĂŶŝŶŐƚŚĂƚƚŚĞǇƌĞƉƌĞƐĞŶƚƚŚĞďĞƐƚĂǀĂŝůĂďůĞĐŽŶƚƌŽůƚĞĐŚŶŽůŽŐǇĂŶŝŶĚƵƐƚƌŝĂůƐĞĐƚŽƌĐŽƵůĚĂĨĨŽƌĚ͘ dŚĞůĞǀĞůŽĨĞŵŝƐƐŝŽŶƐĐŽŶƚƌŽůƐƌĞƋƵŝƌĞĚďǇE
^,WƐĂƌĞŶŽƚďĂƐĞĚŽŶŚĞĂůƚŚƌŝƐŬĐŽŶƐŝĚĞƌĂƚŝŽŶƐďĞĐĂƵƐĞ ĂůůŽǁĂďůĞ ƌĞůĞĂƐĞƐ ĂŶĚ ƌĞƐƵůƚŝŶŐ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐ ŚĂǀĞ ŶŽƚ ďĞĞŶ ĚĞƚĞƌŵŝŶĞĚ ƚŽ ďĞ ƐĂĨĞ ĨŽƌ ƚŚĞ ŐĞŶĞƌĂů ƉƵďůŝĐ͘ dŚĞ & ĚŽĞƐ ŶŽƚ ĞƐƚĂďůŝƐŚ Ăŝƌ ƋƵĂůŝƚǇ ƐƚĂŶĚĂƌĚƐ ĨŽƌ ,WƐ ƚŚĂƚ ĚĞĨŝŶĞ ůĞŐĂůůǇ ĂĐĐĞƉƚĂďůĞ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐŽĨƚŚĞƐĞƉŽůůƵƚĂŶƚƐŝŶĂŵďŝĞŶƚĂŝƌ͘
&ĞĚĞƌĂů
ŵŝƐƐŝŽŶƐ^ƚĂŶĚĂƌĚƐĨŽƌKŶͲZŽĂĚdƌƵĐŬƐ
dŽ ƌĞĚƵĐĞ ĞŵŝƐƐŝŽŶƐ ĨƌŽŵ ŽŶͲƌŽĂĚ͕ ŚĞĂǀǇͲĚƵƚǇ ĚŝĞƐĞů ƚƌƵĐŬƐ͕ ƚŚĞ h͘^͘ W ĞƐƚĂďůŝƐŚĞĚ Ă ƐĞƌŝĞƐ ŽĨ
ŝŶĐƌĞĂƐŝŶŐůǇƐƚƌŝĐƚĞŵŝƐƐŝŽŶƐƚĂŶĚĂƌĚƐ ĨŽƌŶĞǁĞŶŐŝŶĞƐ͕ƐƚĂƌƚŝŶŐŝŶ ϭϵϴϴ͘dŚĞh͘^͘ WƉƌŽŵƵůŐĂƚĞĚƚŚĞ
ĨŝŶĂůĂŶĚĐůĞĂŶĞƐƚƐƚĂŶĚĂƌĚƐǁŝƚŚƚŚĞϮϬϬϳ,ĞĂǀǇͲƵƚǇ,ŝŐŚǁĂǇZƵůĞ͘ϭ dŚĞWDĞŵŝƐƐŝŽŶƐƚĂŶĚĂƌĚŽĨϬ͘Ϭϭ ŐƌĂŵƉĞƌŚŽƌƐĞƉŽǁĞƌͲŚŽƵƌ;ŐͬŚƉͲŚƌͿŝƐƌĞƋƵŝƌĞĚĨŽƌŶĞǁǀĞŚŝĐůĞƐďĞŐŝŶŶŝŶŐǁŝƚŚŵŽĚĞůǇĞĂƌϮϬϬϳ͘ůƐŽ͕ ƚŚĞEKy ĂŶĚŶŽŶŵĞƚŚĂŶĞŚǇĚƌŽĐĂƌďŽŶ;ED,ͿƐƚĂŶĚĂƌĚƐŽĨϬ͘ϮϬŐͬŚƉͲŚƌĂŶĚϬ͘ϭϰŐͬŚƉͲŚƌ͕ƌĞƐƉĞĐƚŝǀĞůǇ͕ ǁĞƌĞƉŚĂƐĞĚŝŶƚŽŐĞƚŚĞƌďĞƚǁĞĞŶϮϬϬϳĂŶĚϮϬϭϬŽŶĂƉĞƌĐĞŶƚŽĨƐĂůĞƐďĂƐŝƐ͗ϱϬƉĞƌĐĞŶƚĨƌŽŵϮϬϬϳƚŽ ϮϬϬϵĂŶĚϭϬϬƉĞƌĐĞŶƚŝŶϮϬϭϬ͘
ϭ hŶŝƚĞĚ ^ƚĂƚĞƐ
ŶǀŝƌŽŶŵĞŶƚĂů WƌŽƚĞĐƚŝŽŶ ŐĞŶĐǇ ;h͘^͘
WͿ͕ ŽŶƚƌŽů ŽĨ ŝƌ WŽůůƵƚŝŽŶ ĨƌŽŵ EĞǁDŽƚŽƌ sĞŚŝĐůĞƐ͗ ,ĞĂǀǇͲƵƚǇ

ŶŐŝŶĞĂŶĚsĞŚŝĐůĞ^ƚĂŶĚĂƌĚƐĂŶĚ,ŝŐŚǁĂǇŝĞƐĞů&ƵĞů^ƵůĨƵƌŽŶƚƌŽůZĞƋƵŝƌĞŵĞŶƚƐ͕&ŝŶĂůZƵůĞ͘ϰϬŽĚĞŽĨ&ĞĚĞƌĂůZĞŐƵůĂƚŝŽŶƐ͕ WĂƌƚƐϲϵ͕ϴϬ͕ĂŶĚϴϲ͘:ĂŶƵĂƌǇϭϴ͕ϮϬϬϭ͘
255
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϵ

ŵŝƐƐŝŽŶ^ƚĂŶĚĂƌĚƐĨŽƌEŽŶƌŽĂĚŝĞƐĞů
ŶŐŝŶĞƐ
dŽƌĞĚƵĐĞĞŵŝƐƐŝŽŶƐĨƌŽŵŽĨĨͲƌŽĂĚĚŝĞƐĞůĞƋƵŝƉŵĞŶƚ͕ƚŚĞh͘^͘ WĞƐƚĂďůŝƐŚĞĚĂƐĞƌŝĞƐŽĨĐůĞĂŶĞƌĞŵŝƐƐŝŽŶ
ƐƚĂŶĚĂƌĚƐĨŽƌŶĞǁŽĨĨͲƌŽĂĚĚŝĞƐĞůĞŶŐŝŶĞƐ͘dŝĞƌϭƐƚĂŶĚĂƌĚƐǁĞƌĞƉŚĂƐĞĚŝŶĨƌŽŵϭϵϵϲƚŽϮϬϬϬ;ǇĞĂƌŽĨ ŵĂŶƵĨĂĐƚƵƌĞͿ͕ĚĞƉĞŶĚŝŶŐŽŶƚŚĞĞŶŐŝŶĞŚŽƌƐĞƉŽǁĞƌĐĂƚĞŐŽƌǇ͘dŝĞƌϮƐƚĂŶĚĂƌĚƐǁĞƌĞƉŚĂƐĞĚŝŶĨƌŽŵϮϬϬϭ ƚŽϮϬϬϲ͘dŝĞƌϯƐƚĂŶĚĂƌĚƐǁĞƌĞƉŚĂƐĞĚŝŶĨƌŽŵϮϬϬϲƚŽϮϬϬϴ͘dŝĞƌϰƐƚĂŶĚĂƌĚƐ͕ǁŚŝĐŚŐĞŶĞƌĂůůǇƌĞƋƵŝƌĞ ĂĚĚͲŽŶĞŵŝƐƐŝŽŶĐŽŶƚƌŽůĞƋƵŝƉŵĞŶƚƚŽĂƚƚĂŝŶƚŚĞŵ͕ĂƌĞďĞŝŶŐƉŚĂƐĞĚŝŶĨƌŽŵϮϬϬϴƚŽϮϬϭϱ͘

3.2 State of California
ĂůŝĨŽƌŶŝĂŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ
Z͛ƐƐƚĂƚĞǁŝĚĞĐŽŵƉƌĞŚĞŶƐŝǀĞĂŝƌƚŽǆŝĐƐƉƌŽŐƌĂŵǁĂƐĞƐƚĂďůŝƐŚĞĚŝŶϭϵϴϯǁŝƚŚϭϴϬϳƚŚĞdŽǆŝĐŝƌ ŽŶƚĂŵŝŶĂŶƚ/ĚĞŶƚŝĨŝĐĂƚŝŽŶĂŶĚŽŶƚƌŽůĐƚ;dĂŶŶĞƌŝƌdŽǆŝĐƐĐƚŽĨϭϵϴϯͿ͘ϭϴϬϳĐƌĞĂƚĞĚĂůŝĨŽƌŶŝĂΖƐ ƉƌŽŐƌĂŵ ƚŽ ƌĞĚƵĐĞ ĞǆƉŽƐƵƌĞ ƚŽ Ăŝƌ ƚŽǆŝĐƐ ĂŶĚ ƐĞƚƐ ĨŽƌƚŚ Ă ĨŽƌŵĂů ƉƌŽĐĞĚƵƌĞ ĨŽƌ Z ƚŽ ĚĞƐŝŐŶĂƚĞ ƐƵďƐƚĂŶĐĞƐĂƐdƐ͘KŶĐĞĂdŝƐŝĚĞŶƚŝĨŝĞĚ͕ZĂĚŽƉƚƐĂŶĂŝƌďŽƌŶĞƚŽǆŝĐƐĐŽŶƚƌŽůŵĞĂƐƵƌĞ;dDͿĨŽƌ ƐŽƵƌĐĞƐƚŚĂƚĞŵŝƚĚĞƐŝŐŶĂƚĞĚdƐ͘/ĨƚŚĞƌĞŝƐĂƐĂĨĞƚŚƌĞƐŚŽůĚ ĨŽƌĂƐƵďƐƚĂŶĐĞĂƚǁŚŝĐŚƚŚĞƌĞŝƐŶŽƚŽǆŝĐ ĞĨĨĞĐƚ͕ƚŚĞĐŽŶƚƌŽůŵĞĂƐƵƌĞŵƵƐƚƌĞĚƵĐĞĞǆƉŽƐƵƌĞƚŽďĞůŽǁƚŚĂƚƚŚƌĞƐŚŽůĚ͘/ĨƚŚĞƌĞŝƐŶŽƐĂĨĞƚŚƌĞƐŚŽůĚ͕ ƚŚĞŵĞĂƐƵƌĞŵƵƐƚŝŶĐŽƌƉŽƌĂƚĞƚŽǆŝĐƐďĞƐƚĂǀĂŝůĂďůĞĐŽŶƚƌŽůƚĞĐŚŶŽůŽŐǇ;dͲdͿƚŽŵŝŶŝŵŝǌĞĞŵŝƐƐŝŽŶƐ͘ Z ĂůƐŽ ĂĚŵŝŶŝƐƚĞƌƐ ƚŚĞ ƐƚĂƚĞ͛Ɛ ŵŽďŝůĞ ƐŽƵƌĐĞ ĞŵŝƐƐŝŽŶƐ ĐŽŶƚƌŽů ƉƌŽŐƌĂŵ ĂŶĚ ŽǀĞƌƐĞĞƐ Ăŝƌ ƋƵĂůŝƚǇ ƉƌŽŐƌĂŵƐĞƐƚĂďůŝƐŚĞĚďǇƐƚĂƚĞƐƚĂƚƵƚĞ͕ƐƵĐŚĂƐϮϱϴϴ͘hŶĚĞƌϮϱϴϴ͕dĞŵŝƐƐŝŽŶƐĨƌŽŵŝŶĚŝǀŝĚƵĂů ĨĂĐŝůŝƚŝĞƐ ĂƌĞ ƋƵĂŶƚŝĨŝĞĚ ĂŶĚ ƉƌŝŽƌŝƚŝǌĞĚ ďǇ ƚŚĞ Ăŝƌ ƋƵĂůŝƚǇ ŵĂŶĂŐĞŵĞŶƚ ĚŝƐƚƌŝĐƚ Žƌ Ăŝƌ ƉŽůůƵƚŝŽŶ ĐŽŶƚƌŽů ĚŝƐƚƌŝĐƚ͘,ŝŐŚƉƌŝŽƌŝƚǇĨĂĐŝůŝƚŝĞƐĂƌĞƌĞƋƵŝƌĞĚƚŽƉĞƌĨŽƌŵĂŚĞĂůƚŚƌŝƐŬĂƐƐĞƐƐŵĞŶƚĂŶĚ͕ŝĨƐƉĞĐŝĨŝĐƚŚƌĞƐŚŽůĚƐ ĂƌĞ ĞǆĐĞĞĚĞĚ͕ ƌĞƋƵŝƌĞĚ ƚŽ ĐŽŵŵƵŶŝĐĂƚĞ ƚŚĞ ƌĞƐƵůƚƐ ƚŽ ƚŚĞ ƉƵďůŝĐ ŝŶ ƚŚĞ ĨŽƌŵ ŽĨ ŶŽƚŝĐĞƐ ĂŶĚ ƉƵďůŝĐ ŵĞĞƚŝŶŐƐ͘/Ŷ^ĞƉƚĞŵďĞƌϭϵϵϮ͕ƚŚĞϮϱϴϴ ǁĂƐĂŵĞŶĚĞĚďǇ^ĞŶĂƚĞŝůů;^ͿϭϳϯϭǁŚŝĐŚƌĞƋƵŝƌĞĚĨĂĐŝůŝƚŝĞƐ ƚŚĂƚƉŽƐĞĂƐŝŐŶŝĨŝĐĂŶƚŚĞĂůƚŚƌŝƐŬƚŽƚŚĞĐŽŵŵƵŶŝƚǇƚŽƌĞĚƵĐĞƚŚĞŝƌƌŝƐŬƚŚƌŽƵŐŚĂƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉůĂŶ͘ ŝĞƐĞůZŝƐŬZĞĚƵĐƚŝŽŶWůĂŶ
dŚĞŝĚĞŶƚŝĨŝĐĂƚŝŽŶ ŽĨWDĂƐĂdŝŶϭϵϵϴůĞĚZƚŽĂĚŽƉƚƚŚĞZŝƐŬZĞĚƵĐƚŝŽŶWůĂŶƚŽZĞĚƵĐĞWĂƌƚŝĐƵůĂƚĞ DĂƚƚĞƌ
ŵŝƐƐŝŽŶƐ ĨƌŽŵ ŝĞƐĞůͲ&ƵĞůĞĚ
ŶŐŝŶĞƐ ĂŶĚ sĞŚŝĐůĞƐ ;ZZWͿ ŝŶKĐƚŽďĞƌ ϮϬϬϬ͘ dŚĞ ZZWΖƐ ŐŽĂůƐ ŝŶĐůƵĚĞĂŶϴϱƉĞƌĐĞŶƚƌĞĚƵĐƚŝŽŶŝŶWD ďǇϮϬϮϬĨƌŽŵƚŚĞ ϮϬϬϬďĂƐĞůŝŶĞ͘Ϯ ZĞƐƚŝŵĂƚĞƐƚŚĂƚĞŵŝƐƐŝŽŶƐ ŽĨWDŝŶϮϬϯϱǁŝůůďĞůĞƐƐƚŚĂŶŚĂůĨƚŚŽƐĞŝŶϮϬϭϬ͕ĨƵƌƚŚĞƌƌĞĚƵĐŝŶŐƐƚĂƚĞǁŝĚĞĐĂŶĐĞƌƌŝƐŬĂŶĚŶŽŶͲĐĂŶĐĞƌ ŚĞĂůƚŚĞĨĨĞĐƚƐ͘ϯ dŚĞZZW ŝŶĐůƵĚĞƐ ƌĞŐƵůĂƚŝŽŶƐ ƚŽĞƐƚĂďůŝƐŚ ĐůĞĂŶĞƌ ŶĞǁ ĚŝĞƐĞůĞŶŐŝŶĞƐ͕ ĐůĞĂŶĞƌ ŝŶͲƵƐĞ ĚŝĞƐĞůĞŶŐŝŶĞƐ;ƌĞƚƌŽĨŝƚƐͿ͕ĂŶĚĐůĞĂŶĞƌĚŝĞƐĞůĨƵĞů͘
dƌƵĐŬĂŶĚƵƐZĞŐƵůĂƚŝŽŶZĞĚƵĐŝŶŐ
ŵŝƐƐŝŽŶƐĨƌŽŵ
ǆŝƐƚŝŶŐŝĞƐĞůsĞŚŝĐůĞƐ
KŶĞĐĞŵďĞƌϭϮ͕ϮϬϬϴ͕ZĂƉƉƌŽǀĞĚƚŚĞdƌƵĐŬĂŶĚƵƐZĞŐƵůĂƚŝŽŶƚŽƐŝŐŶŝĨŝĐĂŶƚůǇƌĞĚƵĐĞƉĂƌƚŝĐƵůĂƚĞ ŵĂƚƚĞƌ;WDͿĂŶĚŽǆŝĚĞƐŽĨŶŝƚƌŽŐĞŶ;EKyͿĞŵŝƐƐŝŽŶƐĨƌŽŵĞǆŝƐƚŝŶŐĚŝĞƐĞůǀĞŚŝĐůĞƐŽƉĞƌĂƚŝŶŐŝŶĂůŝĨŽƌŶŝĂ͘ dŚĞ ƌĞŐƵůĂƚŝŽŶ ƌĞƋƵŝƌĞƐ ĚŝĞƐĞů ƚƌƵĐŬƐ ĂŶĚ ďƵƐĞƐ ƚŚĂƚ ŽƉĞƌĂƚĞ ŝŶ ĂůŝĨŽƌŶŝĂ ƚŽ ďĞ ƵƉŐƌĂĚĞĚ ƚŽ ƌĞĚƵĐĞ ĞŵŝƐƐŝŽŶƐ͘,ĞĂǀŝĞƌƚƌƵĐŬƐǁĞƌĞƌĞƋƵŝƌĞĚƚŽďĞƌĞƚƌŽĨŝƚƚĞĚǁŝƚŚWDĨŝůƚĞƌƐďĞŐŝŶŶŝŶŐ:ĂŶƵĂƌǇϭ͕ϮϬϭϮ͕ĂŶĚ Ϯ ĂůŝĨŽƌŶŝĂŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ͕ZŝƐŬZĞĚƵĐƚŝŽŶWůĂŶƚŽZĞĚƵĐĞWĂƌƚŝĐƵůĂƚĞDĂƚƚĞƌ ŵŝƐƐŝŽŶƐĨƌŽŵŝĞƐĞůͲ&ƵĞůĞĚ
ŶŐŝŶĞƐĂŶĚ
sĞŚŝĐůĞƐ͕KĐƚŽďĞƌϮϬϬϬ͘ ϯ ĂůŝĨŽƌŶŝĂŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ͕KǀĞƌǀŝĞǁ͗ŝĞƐĞů ǆŚĂƵƐƚΘ,ĞĂůƚŚ͕ĂǀĂŝůĂďůĞĂƚ͗
ŚƚƚƉƐ͗ͬͬǁǁϮ͘Ăƌď͘ĐĂ͘ŐŽǀͬƌĞƐŽƵƌĐĞƐͬŽǀĞƌǀŝĞǁͲĚŝĞƐĞůͲĞǆŚĂƵƐƚͲĂŶĚͲŚĞĂůƚŚ͕ĂĐĐĞƐƐĞĚDĂǇϭϬ͕ϮϬϮϭ͘ 256
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϬ
ŽůĚĞƌƚƌƵĐŬƐǁĞƌĞƌĞƋƵŝƌĞĚƚŽďĞ ƌĞƉůĂĐĞĚƐƚĂƌƚŝŶŐ:ĂŶƵĂƌǇϭ͕ϮϬϭϱ͘Ǉ:ĂŶƵĂƌǇϭ͕ϮϬϮϯ͕ŶĞĂƌůǇĂůůƚƌƵĐŬƐ ĂŶĚďƵƐĞƐǁŽƵůĚŶĞĞĚƚŽŚĂǀĞϮϬϭϬŵŽĚĞůǇĞĂƌĞŶŐŝŶĞƐŽƌĞƋƵŝǀĂůĞŶƚ͘ dŚĞ ƌĞŐƵůĂƚŝŽŶ ĂƉƉůŝĞƐ ƚŽ ŵŽƐƚ ƉƌŝǀĂƚĞůǇ ĂŶĚ ĨĞĚĞƌĂůůǇͲŽǁŶĞĚ ĚŝĞƐĞů ĨƵĞůĞĚ ƚƌƵĐŬƐ ĂŶĚ ďƵƐĞƐ ĂŶĚ ƚŽ ƉƌŝǀĂƚĞůǇĂŶĚƉƵďůŝĐůǇŽǁŶĞĚƐĐŚŽŽůďƵƐĞƐǁŝƚŚĂŐƌŽƐƐǀĞŚŝĐůĞǁĞŝŐŚƚƌĂƚŝŶŐ;'stZͿŐƌĞĂƚĞƌƚŚĂŶϭϰ͕ϬϬϬ ƉŽƵŶĚƐ͘^ŵĂůůĨůĞĞƚƐǁŝƚŚƚŚƌĞĞŽƌĨĞǁĞƌĚŝĞƐĞůƚƌƵĐŬƐĐĂŶĚĞůĂǇĐŽŵƉůŝĂŶĐĞ ĨŽƌŚĞĂǀŝĞƌƚƌƵĐŬƐ ĂŶĚƚŚĞƌĞ ĂƌĞ ƐĞǀĞƌĂů ĞǆƚĞŶƐŝŽŶƐ ĨŽƌ ůŽǁͲŵŝůĞĂŐĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ƚƌƵĐŬƐ͕ ĞĂƌůǇ WD ĨŝůƚĞƌ ƌĞƚƌŽĨŝƚƐ͕ ĂĚĚŝŶŐ ĐůĞĂŶĞƌ ǀĞŚŝĐůĞƐ͕ĂŶĚŽƚŚĞƌƐŝƚƵĂƚŝŽŶƐ͘WƌŝǀĂƚĞůǇĂŶĚƉƵďůŝĐůǇŽǁŶĞĚƐĐŚŽŽůďƵƐĞƐŚĂǀĞĚŝĨĨĞƌĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐ͘ ,ĞĂǀǇͲƵƚǇsĞŚŝĐůĞ/ĚůŝŶŐ
ŵŝƐƐŝŽŶZĞĚƵĐƚŝŽŶWƌŽŐƌĂŵ
dŚĞƉƵƌƉŽƐĞŽĨƚŚĞZdD ƚŽ>ŝŵŝƚŝĞƐĞůͲ&ƵĞůĞĚŽŵŵĞƌĐŝĂůDŽƚŽƌsĞŚŝĐůĞ/ĚůŝŶŐŝƐƚŽƌĞĚƵĐĞƉƵďůŝĐ ĞǆƉŽƐƵƌĞ ƚŽ ĚŝĞƐĞů ƉĂƌƚŝĐƵůĂƚĞ ŵĂƚƚĞƌ ĂŶĚ ĐƌŝƚĞƌŝĂ ƉŽůůƵƚĂŶƚƐ ďǇ ůŝŵŝƚŝŶŐ ƚŚĞ ŝĚůŝŶŐ ŽĨ ĚŝĞƐĞůͲĨƵĞůĞĚ ĐŽŵŵĞƌĐŝĂůǀĞŚŝĐůĞƐ͘dŚĞĚƌŝǀĞƌŽĨĂŶǇǀĞŚŝĐůĞƐƵďũĞĐƚƚŽƚŚŝƐdDŝƐƉƌŽŚŝďŝƚĞĚĨƌŽŵŝĚůŝŶŐƚŚĞǀĞŚŝĐůĞ͛Ɛ ƉƌŝŵĂƌǇĚŝĞƐĞůĞŶŐŝŶĞĨŽƌŐƌĞĂƚĞƌƚŚĂŶĨŝǀĞŵŝŶƵƚĞƐĂƚĂŶǇůŽĐĂƚŝŽŶĂŶĚŝƐƉƌŽŚŝďŝƚĞĚĨƌŽŵŝĚůŝŶŐĂĚŝĞƐĞůͲ ĨƵĞůĞĚĂƵǆŝůŝĂƌǇƉŽǁĞƌƐǇƐƚĞŵ;W^ͿĨŽƌŵŽƌĞƚŚĂŶĨŝǀĞŵŝŶƵƚĞƐƚŽƉŽǁĞƌĂŚĞĂƚĞƌ͕ĂŝƌĐŽŶĚŝƚŝŽŶĞƌ͕ŽƌĂŶǇ ĂŶĐŝůůĂƌǇĞƋƵŝƉŵĞŶƚŽŶƚŚĞǀĞŚŝĐůĞŝĨŝƚŚĂƐĂƐůĞĞƉĞƌďĞƌƚŚĂŶĚƚŚĞƚƌƵĐŬŝƐůŽĐĂƚĞĚǁŝƚŚŝŶϭϬϬĨĞĞƚŽĨĂ ƌĞƐƚƌŝĐƚĞĚĂƌĞĂ;ŚŽŵĞƐĂŶĚƐĐŚŽŽůƐͿ͘
Z &ŝŶĂů ZĞŐƵůĂƚŝŽŶ KƌĚĞƌ͕ ZĞƋƵŝƌĞŵĞŶƚƐ ƚŽ ZĞĚƵĐĞ /ĚůŝŶŐ ŵŝƐƐŝŽŶƐ ĨƌŽŵ EĞǁ ĂŶĚ /ŶͲhƐĞ dƌƵĐŬƐ͕
ďĞŐŝŶŶŝŶŐŝŶϮϬϬϴ͕ǁŽƵůĚƌĞƋƵŝƌĞƚŚĂƚŶĞǁϮϬϬϴĂŶĚƐƵďƐĞƋƵĞŶƚŵŽĚĞůͲǇĞĂƌŚĞĂǀǇͲĚƵƚǇĚŝĞƐĞůĞŶŐŝŶĞƐ ďĞĞƋƵŝƉƉĞĚǁŝƚŚĂŶĞŶŐŝŶĞƐŚƵƚĚŽǁŶƐǇƐƚĞŵƚŚĂƚĂƵƚŽŵĂƚŝĐĂůůǇƐŚƵƚƐĚŽǁŶƚŚĞĞŶŐŝŶĞĂĨƚĞƌϯϬϬƐĞĐŽŶĚƐ ŽĨĐŽŶƚŝŶƵŽƵƐŝĚůŝŶŐŽƉĞƌĂƚŝŽŶŽŶĐĞƚŚĞǀĞŚŝĐůĞŝƐƐƚŽƉƉĞĚ͕ƚŚĞ ƚƌĂŶƐŵŝƐƐŝŽŶŝƐƐĞƚƚŽ͞ŶĞƵƚƌĂů͟Žƌ͞ƉĂƌŬ͕͟ ĂŶĚƚŚĞƉĂƌŬŝŶŐďƌĂŬĞŝƐĞŶŐĂŐĞĚ͘
Ăů
ŶǀŝƌŽ^ĐƌĞĞŶ
dŚĞ ĂůŝĨŽƌŶŝĂ KĨĨŝĐĞ ŽĨ
ŶǀŝƌŽŶŵĞŶƚĂů ,ĞĂůƚŚ ,ĂǌĂƌĚ ƐƐĞƐƐŵĞŶƚ ;K
,,Ϳ ŚĂƐ ĚĞǀĞůŽƉĞĚ
Ăů
ŶǀŝƌŽ^ĐƌĞĞŶϯ͘Ϭ͕ǁŚŝĐŚŝƐĂŵĂƉƉŝŶŐ ƚŽŽů ƚŚĂƚŚĞůƉƐŝĚĞŶƚŝĨǇĂůŝĨŽƌŶŝĂĐŽŵŵƵŶŝƚŝĞƐ ƚŚĂƚĂƌĞŵŽƐƚ ĂĨĨĞĐƚĞĚďǇŵĂŶǇƐŽƵƌĐĞƐŽĨƉŽůůƵƚŝŽŶ͕ĂŶĚǁŚĞƌĞƉĞŽƉůĞĂƌĞŽĨƚĞŶĞƐƉĞĐŝĂůůǇǀƵůŶĞƌĂďůĞƚŽƉŽůůƵƚŝŽŶ͛Ɛ ĞĨĨĞĐƚƐ͘Ăů
ŶǀŝƌŽ^ĐƌĞĞŶƵƐĞƐĞŶǀŝƌŽŶŵĞŶƚĂů͕ŚĞĂůƚŚ͕ĂŶĚƐŽĐŝŽĞĐŽŶŽŵŝĐŝŶĨŽƌŵĂƚŝŽŶƚŽƉƌŽĚƵĐĞƐĐŽƌĞƐ ĨŽƌĞǀĞƌǇĐĞŶƐƵƐƚƌĂĐƚŝŶƚŚĞ^ƚĂƚĞ͘dŚĞƐĐŽƌĞƐĂƌĞŵĂƉƉĞĚƐŽƚŚĂƚĚŝĨĨĞƌĞŶƚĐŽŵŵƵŶŝƚŝĞƐĐĂŶďĞĐŽŵƉĂƌĞĚ͘ ŶĂƌĞĂǁŝƚŚĂŚŝŐŚƐĐŽƌĞŝƐŽŶĞƚŚĂƚĞǆƉĞƌŝĞŶĐĞƐĂŵƵĐŚŚŝŐŚĞƌƉŽůůƵƚŝŽŶďƵƌĚĞŶƚŚĂŶĂƌĞĂƐǁŝƚŚůŽǁ ƐĐŽƌĞƐ͘
ĐĐŽƌĚŝŶŐƚŽĂů
ŶǀŝƌŽ^ĐƌĞĞŶ͕ƚŚĞWƌŽũĞĐƚƐŝƚĞŝƐ ůŽĐĂƚĞĚǁŝƚŚŝŶĞŶƐƵƐdƌĂĐƚϲϬϳϭϬϬϭϴϭϯ͕ǁŚŝĐŚŝƐǁŝƚŚŝŶ ƚŚĞϵϱͲϭϬϬƚŚ ƉĞƌĐĞŶƚŝůĞ͘ dŚĞƌĞƐŝĚĞŶƚŝĂůƵƐĞƐƚŽƚŚĞƐŽƵƚŚŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞĂƌĞůŽĐĂƚĞĚǁŝƚŚŝŶĞŶƐƵƐ dƌĂĐƚϲϬϳϭϬϬϭϴϭϬ͕ǁŚŝĐŚŝƐǁŝƚŚŝŶƚŚĞϴϬͲϴϱƚŚƉĞƌĐĞŶƚŝůĞ͘ /ƚƐŚŽƵůĚďĞŶŽƚĞĚƚŚĂƚƚŚĞĂů ŶǀŝƌŽ^ĐƌĞĞŶ
ƐĐŽƌĞƐ ĂƌĞŶŽƚĂŶĞǆƉƌĞƐƐŝŽŶŽĨŚĞĂůƚŚƌŝƐŬ͕ĂŶĚĚŽŶŽƚƉƌŽǀŝĚĞƋƵĂŶƚŝƚĂƚŝǀĞŝŶĨŽƌŵĂƚŝŽŶŽŶŝŶĐƌĞĂƐĞƐŝŶ ĐƵŵƵůĂƚŝǀĞŝŵƉĂĐƚƐĨŽƌƐƉĞĐŝĨŝĐƐŝƚĞƐŽƌƉƌŽũĞĐƚƐ͘&ƵƌƚŚĞƌ͕ĂƐĂĐŽŵƉĂƌĂƚŝǀĞƐĐƌĞĞŶŝŶŐƚŽŽů͕ƚŚĞƌĞƐƵůƚƐĚŽ ŶŽƚƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌĚĞƚĞƌŵŝŶŝŶŐǁŚĞŶĚŝĨĨĞƌĞŶĐĞƐďĞƚǁĞĞŶƐĐŽƌĞƐĂƌĞƐŝŐŶŝĨŝĐĂŶƚŝŶƌĞůĂƚŝŽŶƚŽƉƵďůŝĐ ŚĞĂůƚŚŽƌƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͘
ZĚǀĂŶĐĞĚůĞĂŶdƌƵĐŬZĞŐƵůĂƚŝŽŶ
Z ĂĚŽƉƚĞĚ ƚŚĞ ĚǀĂŶĐĞĚ ůĞĂŶ dƌƵĐŬ ZĞŐƵůĂƚŝŽŶ ŝŶ :ƵŶĞ ϮϬϮϬ ƌĞƋƵŝƌŝŶŐ ƚƌƵĐŬ ŵĂŶƵĨĂĐƚƵƌĞƌƐ ƚŽ ƚƌĂŶƐŝƚŝŽŶĨƌŽŵĚŝĞƐĞůƚƌƵĐŬƐĂŶĚǀĂŶƐ ƚŽĞůĞĐƚƌŝĐǌĞƌŽͲĞŵŝƐƐŝŽŶƚƌƵĐŬƐďĞŐŝŶŶŝŶŐŝŶϮϬϮϰ͘ǇϮϬϰϱ͕ĞǀĞƌǇ ŶĞǁƚƌƵĐŬƐŽůĚŝŶĂůŝĨŽƌŶŝĂŝƐƌĞƋƵŝƌĞĚƚŽďĞǌĞƌŽͲĞŵŝƐƐŝŽŶ͘dŚŝƐƌƵůĞĚŝƌĞĐƚůǇĂĚĚƌĞƐƐĞƐĚŝƐƉƌŽƉŽƌƚŝŽŶĂƚĞ 257
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϭ
ƌŝƐŬƐĂŶĚŚĞĂůƚŚĂŶĚƉŽůůƵƚŝŽŶďƵƌĚĞŶƐĂŶĚƉƵƚƐĂůŝĨŽƌŶŝĂŽŶƚŚĞƉĂƚŚĨŽƌĂŶĂůůǌĞƌŽͲĞŵŝƐƐŝŽŶƐŚŽƌƚͲŚĂƵů ĚƌĂǇĂŐĞ ĨůĞĞƚŝŶƉŽƌƚƐĂŶĚƌĂŝůǇĂƌĚƐďǇϮϬϯϱ͕ĂŶĚǌĞƌŽͲĞŵŝƐƐŝŽŶ͞ůĂƐƚͲŵŝůĞ͟ĚĞůŝǀĞƌǇ ƚƌƵĐŬƐĂŶĚǀĂŶƐďǇ ϮϬϰϬ͘ dŚĞ ĚǀĂŶĐĞĚ ůĞĂŶ dƌƵĐŬ ZĞŐƵůĂƚŝŽŶ ĂĐĐĞůĞƌĂƚĞƐ ƚŚĞ ƚƌĂŶƐŝƚŝŽŶ ŽĨ ǌĞƌŽͲĞŵŝƐƐŝŽŶ ŵĞĚŝƵŵͲĂŶĚ ŚĞĂǀǇͲĚƵƚǇǀĞŚŝĐůĞƐĨƌŽŵůĂƐƐϮďƚŽůĂƐƐϴ͘dŚĞƌĞŐƵůĂƚŝŽŶŚĂƐƚǁŽĐŽŵƉŽŶĞŶƚƐŝŶĐůƵĚŝŶŐĂŵĂŶƵĨĂĐƚƵƌĞƌ ƐĂůĞƐƌĞƋƵŝƌĞŵĞŶƚ͕ĂŶĚĂƌĞƉŽƌƚŝŶŐƌĞƋƵŝƌĞŵĞŶƚ͗
x ĞƌŽͲ
ŵŝƐƐŝŽŶ dƌƵĐŬ ^ĂůĞƐ͗DĂŶƵĨĂĐƚƵƌĞƌƐ ǁŚŽ ĐĞƌƚŝĨǇ ůĂƐƐ Ϯď ƚŚƌŽƵŐŚ ϴ ĐŚĂƐƐŝƐ Žƌ ĐŽŵƉůĞƚĞ ǀĞŚŝĐůĞƐ ǁŝƚŚ ĐŽŵďƵƐƚŝŽŶ ĞŶŐŝŶĞƐ ĂƌĞ ƌĞƋƵŝƌĞĚ ƚŽ ƐĞůů ǌĞƌŽͲĞŵŝƐƐŝŽŶ ƚƌƵĐŬƐ ĂƐ ĂŶ ŝŶĐƌĞĂƐŝŶŐ ƉĞƌĐĞŶƚĂŐĞ ŽĨ ƚŚĞŝƌ ĂŶŶƵĂů ĂůŝĨŽƌŶŝĂ ƐĂůĞƐ ĨƌŽŵ ϮϬϮϰ ƚŽ ϮϬϯϱ͘ Ǉ ϮϬϯϱ͕ ǌĞƌŽͲĞŵŝƐƐŝŽŶ ƚƌƵĐŬͬĐŚĂƐƐŝƐƐĂůĞƐŶĞĞĚƚŽďĞϱϱƉĞƌĐĞŶƚŽĨůĂƐƐϮďʹ ϯƚƌƵĐŬƐĂůĞƐ͕ϳϱƉĞƌĐĞŶƚŽĨůĂƐƐϰʹ ϴ ƐƚƌĂŝŐŚƚƚƌƵĐŬƐĂůĞƐ͕ĂŶĚϰϬƉĞƌĐĞŶƚŽĨƚƌƵĐŬƚƌĂĐƚŽƌƐĂůĞƐ͘ x ŽŵƉĂŶǇĂŶĚ&ůĞĞƚZĞƉŽƌƚŝŶŐ͗>ĂƌŐĞĞŵƉůŽǇĞƌƐŝŶĐůƵĚŝŶŐƌĞƚĂŝůĞƌƐ͕ŵĂŶƵĨĂĐƚƵƌĞƌƐ͕ďƌŽŬĞƌƐĂŶĚ ŽƚŚĞƌƐ ǁŽƵůĚ ďĞ ƌĞƋƵŝƌĞĚ ƚŽ ƌĞƉŽƌƚ ŝŶĨŽƌŵĂƚŝŽŶ ĂďŽƵƚ ƐŚŝƉŵĞŶƚƐ ĂŶĚ ƐŚƵƚƚůĞ ƐĞƌǀŝĐĞƐ͘ &ůĞĞƚ ŽǁŶĞƌƐ͕ǁŝƚŚϱϬŽƌŵŽƌĞƚƌƵĐŬƐ͕ǁŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚĂďŽƵƚƚŚĞŝƌĞǆŝƐƚŝŶŐĨůĞĞƚŽƉĞƌĂƚŝŽŶƐ͘ dŚŝƐŝŶĨŽƌŵĂƚŝŽŶǁŽƵůĚ ŚĞůƉŝĚĞŶƚŝĨǇ ĨƵƚƵƌĞ ƐƚƌĂƚĞŐŝĞƐ ƚŽĞŶƐƵƌĞ ƚŚĂƚ ĨůĞĞƚƐ ƉƵƌĐŚĂƐĞĂǀĂŝůĂďůĞ ǌĞƌŽͲĞŵŝƐƐŝŽŶƚƌƵĐŬƐĂŶĚƉůĂĐĞƚŚĞŵŝŶƐĞƌǀŝĐĞǁŚĞƌĞƐƵŝƚĂďůĞƚŽŵĞĞƚƚŚĞŝƌŶĞĞĚƐ͘

3.3 REGIONAL
^ŽƵƚŚŽĂƐƚŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ
dŚĞƉƌŽǀŝĚĞƐƚŚĞ^YD ǁŝƚŚƚŚĞĂƵƚŚŽƌŝƚǇƚŽŵĂŶĂŐĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶĂĐƚŝǀŝƚŝĞƐĂƚŝŶĚŝƌĞĐƚƐŽƵƌĐĞƐ ĂŶĚƌĞŐƵůĂƚĞƐƚĂƚŝŽŶĂƌǇƐŽƵƌĐĞĞŵŝƐƐŝŽŶƐ͘/ŶĚŝƌĞĐƚƐŽƵƌĐĞƐŽĨƉŽůůƵƚŝŽŶĂƌĞŐĞŶĞƌĂƚĞĚǁŚĞŶŵŝŶŽƌƐŽƵƌĐĞƐ ĐŽůůĞĐƚŝǀĞůǇĞŵŝƚĂƐƵďƐƚĂŶƚŝĂůĂŵŽƵŶƚŽĨƉŽůůƵƚŝŽŶ͘ŶĞǆĂŵƉůĞŽĨƚŚŝƐǁŽƵůĚďĞƚŚĞŵŽƚŽƌǀĞŚŝĐůĞƐĂƚĂŶ ŝŶƚĞƌƐĞĐƚŝŽŶ͕ĂŵĂůů͕ĂŶĚŽŶŚŝŐŚǁĂǇƐ͘ƐĂ^ƚĂƚĞĂŐĞŶĐǇ͕ZƌĞŐƵůĂƚĞƐŵŽƚŽƌǀĞŚŝĐůĞƐĂŶĚĨƵĞůƐĨŽƌƚŚĞŝƌ ĞŵŝƐƐŝŽŶƐ͘
ŝƌdŽǆŝĐƐŽŶƚƌŽůWůĂŶ
dŚĞŝƌdŽǆŝĐƐŽŶƚƌŽůWůĂŶ ;DĂƌĐŚϮϬϬϬ͕ ƌĞǀŝƐĞĚDĂƌĐŚϮϲ͕ϮϬϬϰͿŝƐĂƉůĂŶŶŝŶŐĚŽĐƵŵĞŶƚĚĞƐŝŐŶĞĚ ƚŽ ĞǆĂŵŝŶĞƚŚĞŽǀĞƌĂůůĚŝƌĞĐƚŝŽŶŽĨƚŚĞ^YD͛ƐĂŝƌƚŽǆŝĐƐĐŽŶƚƌŽůƉƌŽŐƌĂŵ͘/ƚŝŶĐůƵĚĞƐĚĞǀĞůŽƉŵĞŶƚĂŶĚ ŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƐƚƌĂƚĞŐŝĐŝŶŝƚŝĂƚŝǀĞƐƚŽŵŽŶŝƚŽƌĂŶĚĐŽŶƚƌŽůĂŝƌƚŽǆŝĐƐĞŵŝƐƐŝŽŶƐ͘ŽŶƚƌŽůƐƚƌĂƚĞŐŝĞƐƚŚĂƚ ĂƌĞĚĞĞŵĞĚǀŝĂďůĞĂŶĚĂƌĞ ǁŝƚŚŝŶƚŚĞ^YD͛ƐũƵƌŝƐĚŝĐƚŝŽŶǁŝůůĞĂĐŚďĞďƌŽƵŐŚƚƚŽƚŚĞ^YDŽĂƌĚ ĨŽƌĨƵƌƚŚĞƌĐŽŶƐŝĚĞƌĂƚŝŽŶƚŚƌŽƵŐŚƚŚĞŶŽƌŵĂůƉƵďůŝĐƌĞǀŝĞǁƉƌŽĐĞƐƐ͘^ƚƌĂƚĞŐŝĞƐƚŚĂƚĂƌĞƚŽďĞŝŵƉůĞŵĞŶƚĞĚ ďǇŽƚŚĞƌĂŐĞŶĐŝĞƐǁŝůůďĞĚĞǀĞůŽƉĞĚŝŶĂĐŽŽƉĞƌĂƚŝǀĞĞĨĨŽƌƚ͕ĂŶĚƚŚĞƉƌŽŐƌĞƐƐǁŝůůďĞƌĞƉŽƌƚĞĚďĂĐŬƚŽƚŚĞ ŽĂƌĚƉĞƌŝŽĚŝĐĂůůǇ͘
DƵůƚŝƉůĞŝƌdŽǆŝĐƐ
ǆƉŽƐƵƌĞ^ƚƵĚǇ
dŚĞ^YD ĐŽŶĚƵĐƚĞĚĂŶŝŶͲĚĞƉƚŚĂŶĂůǇƐŝƐŽĨƚŚĞƚŽǆŝĐĂŝƌĐŽŶƚĂŵŝŶĂŶƚƐĂŶĚƚŚĞŝƌƌĞƐƵůƚŝŶŐŚĞĂůƚŚƌŝƐŬƐ ĨŽƌĂůůŽĨ^ŽƵƚŚĞƌŶĂůŝĨŽƌŶŝĂ͘dŚĞ DƵůƚŝƉůĞŝƌdŽǆŝĐƐ ǆƉŽƐƵƌĞ^ƚƵĚǇŝŶƚŚĞ^ ;Dd
^/sͿƐŚŽǁƐ ƚŚĂƚ
ĐĂŶĐĞƌƌŝƐŬŚĂƐĚĞĐƌĞĂƐĞĚŵŽƌĞƚŚĂŶϱϬƉĞƌĐĞŶƚďĞƚǁĞĞŶDd ^///;ϮϬϬϴͿĂŶĚDd
^/s;ϮϬϭϱͿ͘
Dd
^/sŝƐƚŚĞŵŽƐƚĐŽŵƉƌĞŚĞŶƐŝǀĞĚĂƚĂƐĞƚĚŽĐƵŵĞŶƚŝŶŐƚŚĞĂŵďŝĞŶƚĂŝƌƚŽǆŝĐůĞǀĞůƐĂŶĚŚĞĂůƚŚƌŝƐŬƐ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞ^ ĞŵŝƐƐŝŽŶƐ͘dŚĞƌĞĨŽƌĞ͕Dd
^/sƐƚƵĚǇƌĞƉƌĞƐĞŶƚƐƚŚĞďĂƐĞůŝŶĞŚĞĂůƚŚƌŝƐŬĨŽƌĂ
ĐƵŵƵůĂƚŝǀĞĂŶĂůǇƐŝƐ͘Dd
^/sĞƐƚŝŵĂƚĞƐƚŚĞĂǀĞƌĂŐĞĞǆĐĞƐƐĐĂŶĐĞƌƌŝƐŬůĞǀĞůĨƌŽŵĞǆƉŽƐƵƌĞƚŽdƐŝƐůĞƐƐ ƚŚĂŶϰϬϬŝŶŽŶĞŵŝůůŝŽŶďĂƐŝŶͲǁŝĚĞ͘dŚĞƐĞŵŽĚĞůĞƐƚŝŵĂƚĞƐǁĞƌĞďĂƐĞĚŽŶŵŽŶŝƚŽƌŝŶŐĚĂƚĂĐŽůůĞĐƚĞĚĂƚ 258
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϮ
ƚĞŶ ĨŝǆĞĚƐŝƚĞƐǁŝƚŚŝŶ ƚŚĞ^͘EŽŶĞŽĨ ƚŚĞ ĨŝǆĞĚŵŽŶŝƚŽƌŝŶŐƐŝƚĞƐĂƌĞŶĞĂƌ ƚŚĞWƌŽũĞĐƚ ƐŝƚĞ͘,ŽǁĞǀĞƌ͕ Dd
^/sŚĂƐĞǆƚƌĂƉŽůĂƚĞĚƚŚĞĞǆĐĞƐƐĐĂŶĐĞƌƌŝƐŬůĞǀĞůƐƚŚƌŽƵŐŚŽƵƚƚŚĞ^ ďǇŵŽĚĞůŝŶŐƚŚĞƐƉĞĐŝĨŝĐ ŐƌŝĚƐ͘Dd
^/sŵŽĚĞůŝŶŐƉƌĞĚŝĐƚĞĚĂŶĞǆĐĞƐƐĐĂŶĐĞƌƌŝƐŬŽĨϳϳϮ ŝŶŽŶĞŵŝůůŝŽŶĨŽƌƚŚĞWƌŽũĞĐƚ ĂƌĞĂ͘ϰ WD ŝƐŝŶĐůƵĚĞĚŝŶƚŚŝƐĐĂŶĐĞƌƌŝƐŬĂůŽŶŐǁŝƚŚĂůůŽƚŚĞƌdƐŽƵƌĐĞƐ͘WDĂĐĐŽƵŶƚƐĨŽƌϲϴƉĞƌĐĞŶƚŽĨƚŚĞƚŽƚĂů ƌŝƐŬ ƐŚŽǁŶ ŝŶ Dd
^ /s͘ dŚĞ ^YD ŝƐ ĐƵƌƌĞŶƚůǇ ƉƌĞƉĂƌŝŶŐ Dd
^ s͕ ǁŚŝĐŚ ǁŝůů ďĞ ƚŚĞ ůĂƚĞƐƚ
ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƐƚƵĚǇ ŽĨ ůĞǀĞůƐ ŽĨ ƚŽǆŝĐ Ăŝƌ ƉŽůůƵƚĂŶƚƐ ƚŚĞ ƌĞŐŝŽŶ͕ Dd ^ s ǁŝůů ŝŶĐůƵĚĞ ĂŶ ĂĚǀĂŶĐĞĚ
ŵŽŶŝƚŽƌŝŶŐĐŽŵƉŽŶĞŶƚǁŝƚŚĂĨŽĐƵƐŽŶƌĞĨŝŶĞƌǇĞŵŝƐƐŝŽŶƐ͘ ƐƐĞŵďůǇŝůůϲϭϳʹ ŽŵŵƵŶŝƚǇŝƌWƌŽƚĞĐƚŝŽŶWƌŽŐƌĂŵ
WĂƐƐĞĚ ďǇ ƚŚĞ ĂůŝĨŽƌŶŝĂ ůĞŐŝƐůĂƚƵƌĞ ŝŶ ϮϬϭϳ͕ ϲϭϳ ŝƐ Ă ůĂǁ ƚŚĂƚ ĨŽĐƵƐĞƐ ŽŶ ƌĞĚƵĐŝŶŐ Ăŝƌ ƉŽůůƵƚŝŽŶ ŝŶ ĞŶǀŝƌŽŶŵĞŶƚĂů ũƵƐƚŝĐĞ ĐŽŵŵƵŶŝƚŝĞƐ ƚŚƌŽƵŐŚŽƵƚ ƚŚĞ ^ƚĂƚĞ͘ ϲϭϳƌĞƋƵŝƌĞƐ Ă ƐƚĂƚĞǁŝĚĞ ƐƚƌĂƚĞŐǇ ǁŝƚŚ ĨŽĐƵƐĞĚ ĂĐƚŝŽŶƐ ĨŽƌ ĐŽŵŵƵŶŝƚŝĞƐ ŚĞĂǀŝůǇ ŝŵƉĂĐƚĞĚ ďǇ Ăŝƌ ƉŽůůƵƚŝŽŶ͘ dŚĞƐĞ ĂĐƚŝŽŶƐ ŝŶĐůƵĚĞ ĚĞǀĞůŽƉŝŶŐ ĐŽŵŵƵŶŝƚǇĂŝƌŵŽŶŝƚŽƌŝŶŐƉůĂŶƐ;DWƐͿĂŶĚͬŽƌĐŽŵŵƵŶŝƚǇĞŵŝƐƐŝŽŶƐƌĞĚƵĐƚŝŽŶƉůĂŶƐ; ZWƐͿƚŽƌĞĚƵĐĞ
ĞŵŝƐƐŝŽŶƐŽĨƚŽǆŝĐĂŝƌĐŽŶƚĂŵŝŶĂŶƚƐ;dƐͿĂŶĚĐƌŝƚĞƌŝĂƉŽůůƵƚĂŶƚƐ͘dŚĞ^ĂŶĞƌŶĂƌĚŝŶŽͬDƵƐĐŽǇĂƌĞĂǁĂƐ ĂŵŽŶŐƚŚƌĞĞĐŽŵŵƵŶŝƚŝĞƐĐŚŽƐĞŶĨŽƌƚŚĞƉƌŽŐƌĂŵ͘dŚĞƉƌŽũĞĐƚƐŝƚĞŝƐĂƉƉƌŽǆŝŵĂƚĞůǇϭϳ ŵŝůĞƐǁĞƐƚŽĨƚŚĞ
ZW͛ƐďŽƵŶĚĂƌǇĂŶĚĂƉƉƌŽǆŝŵĂƚĞůǇϭϲ͘ϱ ŵŝůĞƐǁĞƐƚŽĨƚŚĞĞŵŝƐƐŝŽŶƐƐƚƵĚǇĂƌĞĂďŽƵŶĚĂƌǇ͘ dŚĞ^ĂŶĞƌŶĂƌĚŝŶŽͬDƵƐĐŽǇ
ZWŽƵƚůŝŶĞƐƚŚĞĂĐƚŝŽŶƐĂŶĚĐŽŵŵŝƚŵĞŶƚƐƚŽƌĞĚƵĐĞĂŝƌƉŽůůƵƚŝŽŶĨŽƌƚŚĞ ^ĂŶĞƌŶĂƌĚŝŶŽͬDƵƐĐŽǇĐŽŵŵƵŶŝƚǇ͘/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƚŚĞ ZWŝƐĞƐƚŝŵĂƚĞĚƚŽƌĞĚƵĐĞEKy ĞŵŝƐƐŝŽŶƐ
ďǇϰϬƚŽϱϬƚŽŶƐƉĞƌǇĞĂƌĂŶĚWDĞŵŝƐƐŝŽŶƐďǇϬ͘ϱƚŽϬ͘ϲ ƚŽŶƐƉĞƌǇĞĂƌ͘dŚĞ ZW͛ƐŐŽĂůŝƐƚŽĐƵƚEKy ĂŶĚ
WDĞŵŝƐƐŝŽŶƐϭϬƉĞƌĐĞŶƚďǇϮϬϮϰĂŶĚϮϭƉĞƌĐĞŶƚĂŶĚϭϱƉĞƌĐĞŶƚ͕ƌĞƐƉĞĐƚŝǀĞůǇ͕ďǇϮϬϮϵ͘
ZWŝŵƉůĞŵĞŶƚĂƚŝŽŶŝƐƚŽƚĂŬĞƉůĂĐĞŽǀĞƌĂƉƉƌŽǆŝŵĂƚĞůǇĨŝǀĞǇĞĂƌƐ͘KŶĐĞĂĚŽƉƚĞĚ͕ƚŚĞ ZWǁŽƵůĚĂůůŽǁ
ƚŚĞ^YDƚŽƉƌŽǀŝĚĞŝŶĐĞŶƚŝǀĞĨƵŶĚƐƚŽĂĐĐĞůĞƌĂƚĞƚŚĞƌĞƉůĂĐĞŵĞŶƚŽĨŽůĚƚƌƵĐŬƐǁŝƚŚƚĞĐŚŶŽůŽŐǇƚŚĂƚ ŝƐ ĐůĞĂŶĞƌ ƚŚĂŶ ƌĞƋƵŝƌĞĚ͕ ĨŽĐƵƐ ĞŶĨŽƌĐĞŵĞŶƚ ƚŽ ĞŶƐƵƌĞ ƌƵůĞ ĐŽŵƉůŝĂŶĐĞ͕ ĚĞǀĞůŽƉ ŶĞǁ ƌƵůĞƐ ƚŽ ƌĞĚƵĐĞ ĞŵŝƐƐŝŽŶƐ͕ǁŽƌŬǁŝƚŚůĂŶĚƵƐĞĂŐĞŶĐŝĞƐ ƚŽĚĞǀĞůŽƉĞŵŝƐƐŝŽŶƐ ƌĞĚƵĐŝŶŐƉŽůŝĐŝĞƐ͕ĂŶĚŝŵƉůĞŵĞŶƚ ƐĐŚŽŽů ƉƌŽŐƌĂŵƐƚŽƌĞĚƵĐĞŝŶĚŽŽƌůĞǀĞůƐŽĨƉŽůůƵƚŝŽŶ͘dŚĞ
ZWĚŽĞƐŶŽƚŝŶĐůƵĚĞƐƉƌŽũĞĐƚͲƐƉĞĐŝĨŝĐƌĞƋƵŝƌĞŵĞŶƚƐ
ďƵƚǁŽƵůĚĂůůŽǁƚŚĞ^YDĂŶĚZƚŽŝŵƉůĞŵĞŶƚĞŵŝƐƐŝŽŶƐƌĞĚƵĐŝŶŐŵĞĂƐƵƌĞƐ͘dŚĞƌĞĨŽƌĞ͕ŶŽĨƵƌƚŚĞƌ ĂŶĂůǇƐŝƐŝƐǁĂƌƌĂŶƚĞĚ͘
ϰ ^ŽƵƚŚŽĂƐƚŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ͕Dd
^/s
ƐƚŝŵĂƚĞĚZŝƐŬ͕ŚƚƚƉƐ͗ͬͬƐĐĂƋŵĚͲ
ŽŶůŝŶĞ͘ŵĂƉƐ͘ĂƌĐŐŝƐ͘ĐŽŵͬĂƉƉƐͬǁĞďĂƉƉǀŝĞǁĞƌͬŝŶĚĞǆ͘Śƚŵů͍ŝĚсϰϳϬĐϯϬďĐϲĚĂĨϰĞĨϲĂϰϯĨϬϬϴϮϵϳϯĨĨϰϱĨ 259
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϯ
4 SIGNIFICANCE CRITERIA AND METHODOLOGY

4.1 Health Risk Analysis Thresholds
WƌŽũĞĐƚ ŚĞĂůƚŚ ƌŝƐŬƐĂƌĞ ĚĞƚĞƌŵŝŶĞĚ ďǇĞǆĂŵŝŶŝŶŐ ƚŚĞ ƚǇƉĞƐĂŶĚůĞǀĞůƐŽĨĂŝƌ ƚŽǆŝĐƐŐĞŶĞƌĂƚĞĚĂŶĚ ƚŚĞ ĂƐƐŽĐŝĂƚĞĚ ŝŵƉĂĐƚƐ ŽŶ ĨĂĐƚŽƌƐ ƚŚĂƚ ĂĨĨĞĐƚ Ăŝƌ ƋƵĂůŝƚǇ͘ tŚŝůĞ ƚŚĞ ĨŝŶĂů ĚĞƚĞƌŵŝŶĂƚŝŽŶ ŽĨ ƐŝŐŶŝĨŝĐĂŶĐĞ ƚŚƌĞƐŚŽůĚƐŝƐǁŝƚŚŝŶƚŚĞƉƵƌǀŝĞǁŽĨƚŚĞůĞĂĚĂŐĞŶĐǇƉƵƌƐƵĂŶƚƚŽƚŚĞ^ƚĂƚĞ Y'ƵŝĚĞůŝŶĞƐ͕ƚŚĞ^YD
ƌĞĐŽŵŵĞŶĚƐƚŚĂƚƚŚĞĨŽůůŽǁŝŶŐĂŝƌƉŽůůƵƚŝŽŶƚŚƌĞƐŚŽůĚƐďĞƵƐĞĚďǇůĞĂĚĂŐĞŶĐŝĞƐŝŶĚĞƚĞƌŵŝŶŝŶŐǁŚĞƚŚĞƌ ƚŚĞŝŵƉĂĐƚƐĨƌŽŵƚŚĞWƌŽũĞĐƚĂƌĞ ƐŝŐŶŝĨŝĐĂŶƚ͘/ĨƚŚĞůĞĂĚĂŐĞŶĐǇĨŝŶĚƐƚŚĂƚƚŚĞWƌŽũĞĐƚŚĂƐƚŚĞƉŽƚĞŶƚŝĂůƚŽ ĞǆĐĞĞĚƚŚĞĂŝƌƉŽůůƵƚŝŽŶƚŚƌĞƐŚŽůĚƐ͕ƚŚĞWƌŽũĞĐƚ ƐŚŽƵůĚďĞĐŽŶƐŝĚĞƌĞĚƐŝŐŶŝĨŝĐĂŶƚ͘dŚĞƚŚƌĞƐŚŽůĚƐ ĨŽƌĂŝƌ ƚŽǆŝĐĞŵŝƐƐŝŽŶƐĂƌĞĂƐĨŽůůŽǁƐ͗
x ĂŶĐĞƌ ZŝƐŬ͗
ŵŝƚ ĐŽŶƚĂŵŝŶĂŶƚƐ ƚŚĂƚĞǆĐĞĞĚ ƚŚĞŵĂǆŝŵƵŵ ŝŶĚŝǀŝĚƵĂů ĐĂŶĐĞƌ ƌŝƐŬŽĨ ϭϬ ŝŶ ŽŶĞ ŵŝůůŝŽŶ͘
x EŽŶͲĂŶĐĞƌ ZŝƐŬ͗
ŵŝƚ ĐŽŶƚĂŵŝŶĂŶƚƐ ƚŚĂƚ ĞǆĐĞĞĚ ƚŚĞ ŵĂǆŝŵƵŵ ŚĂǌĂƌĚ ƋƵŽƚŝĞŶƚ ŽĨ ϭ ŝŶ ŽŶĞ ŵŝůůŝŽŶ͘
ĂŶĐĞƌƌŝƐŬŝƐĞǆƉƌĞƐƐĞĚŝŶƚĞƌŵƐŽĨĞǆƉĞĐƚĞĚŝŶĐƌĞŵĞŶƚĂůŝŶĐŝĚĞŶĐĞƉĞƌŵŝůůŝŽŶƉŽƉƵůĂƚŝŽŶ͘dŚĞ^YD ŚĂƐ ĞƐƚĂďůŝƐŚĞĚ ĂŶ ŝŶĐŝĚĞŶĐĞ ƌĂƚĞ ŽĨ ϭϬ ƉĞƌƐŽŶƐ ƉĞƌ ŵŝůůŝŽŶ ĂƐƚŚĞŵĂǆŝŵƵŵ ĂĐĐĞƉƚĂďůĞ ŝŶĐƌĞŵĞŶƚĂů ĐĂŶĐĞƌƌŝƐŬĚƵĞƚŽWDĞǆƉŽƐƵƌĞ͘dŚŝƐƚŚƌĞƐŚŽůĚƐĞƌǀĞƐƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌŽƌŶŽƚĂŐŝǀĞŶƉƌŽũĞĐƚŚĂƐ ĂƉŽƚĞŶƚŝĂůůǇƐŝŐŶŝĨŝĐĂŶƚĚĞǀĞůŽƉŵĞŶƚͲƐƉĞĐŝĨŝĐĂŶĚĐƵŵƵůĂƚŝǀĞŝŵƉĂĐƚ͘dŚĞϭϬŝŶŽŶĞŵŝůůŝŽŶƐƚĂŶĚĂƌĚŝƐĂ ŚĞĂůƚŚͲƉƌŽƚĞĐƚŝǀĞƐŝŐŶŝĨŝĐĂŶĐĞƚŚƌĞƐŚŽůĚ͘ƌŝƐŬůĞǀĞůŽĨϭϬŝŶŽŶĞŵŝůůŝŽŶŝŵƉůŝĞƐĂůŝŬĞůŝŚŽŽĚƚŚĂƚƵƉƚŽϭϬ ƉĞƌƐŽŶƐ͕ ŽƵƚŽĨŽŶĞŵŝůůŝŽŶĞƋƵĂůůǇĞǆƉŽƐĞĚƉĞŽƉůĞǁŽƵůĚĐŽŶƚƌĂĐƚĐĂŶĐĞƌŝĨĞǆƉŽƐĞĚĐŽŶƚŝŶƵŽƵƐůǇ ;Ϯϰ ŚŽƵƌƐƉĞƌĚĂǇͿƚŽƚŚĞůĞǀĞůƐŽĨƚŽǆŝĐĂŝƌĐŽŶƚĂŵŝŶĂŶƚƐŽǀĞƌĂƐƉĞĐŝĨŝĞĚĚƵƌĂƚŝŽŶŽĨƚŝŵĞ͘dŚŝƐƌŝƐŬǁŽƵůĚďĞ ĂŶĞǆĐĞƐƐĐĂŶĐĞƌƚŚĂƚŝƐŝŶĂĚĚŝƚŝŽŶƚŽĂŶǇĐĂŶĐĞƌƌŝƐŬďŽƌŶĞďǇĂƉĞƌƐŽŶŶŽƚĞǆƉŽƐĞĚƚŽƚŚĞƐĞĂŝƌƚŽǆŝĐƐ͘ dŽƉƵƚƚŚŝƐƌŝƐŬŝŶ ƉĞƌƐƉĞĐƚŝǀĞ͕ƚŚĞƌŝƐŬŽĨĚǇŝŶŐĨƌŽŵĂĐĐŝĚĞŶƚĂůĚƌŽǁŶŝŶŐŝƐϭ͕ϬϬϬŝŶĂŵŝůůŝŽŶǁŚŝĐŚŝƐϭϬϬ ƚŝŵĞƐŵŽƌĞƚŚĂŶƚŚĞ^YD͛ƐƚŚƌĞƐŚŽůĚŽĨϭϬŝŶŽŶĞŵŝůůŝŽŶ͘ dŚĞ^YD ŚĂƐĂůƐŽĞƐƚĂďůŝƐŚĞĚ ŶŽŶͲĐĂƌĐŝŶŽŐĞŶŝĐ ƌŝƐŬ ƉĂƌĂŵĞƚĞƌƐ ĨŽƌ ƵƐĞŝŶ,ZƐ͘EŽŶĐĂƌĐŝŶŽŐĞŶŝĐ ƌŝƐŬƐ ĂƌĞ ƋƵĂŶƚŝĨŝĞĚ ďǇ ĐĂůĐƵůĂƚŝŶŐ Ă ΗŚĂǌĂƌĚ ŝŶĚĞǆ͕Η ;,/Ϳ ĞǆƉƌĞƐƐĞĚ ĂƐ ƚŚĞ ƌĂƚŝŽ ďĞƚǁĞĞŶ ƚŚĞ ĂŵďŝĞŶƚ ƉŽůůƵƚĂŶƚĐŽŶĐĞŶƚƌĂƚŝŽŶĂŶĚŝƚƐƚŽǆŝĐŝƚǇŽƌZĞĨĞƌĞŶĐĞ
ǆƉŽƐƵƌĞ>ĞǀĞů;Z
>Ϳ͘ŶZ
> ŝƐĂĐŽŶĐĞŶƚƌĂƚŝŽŶĂƚŽƌ
ďĞůŽǁǁŚŝĐŚŚĞĂůƚŚĞĨĨĞĐƚƐĂƌĞŶŽƚůŝŬĞůǇƚŽŽĐĐƵƌ͘ŚĂǌĂƌĚŝŶĚĞǆůĞƐƐƚŚĂŶϭ͘Ϭ ŵĞĂŶƐƚŚĂƚĂĚǀĞƌƐĞŚĞĂůƚŚ ĞĨĨĞĐƚƐĂƌĞŶŽƚĞǆƉĞĐƚĞĚ͘tŝƚŚŝŶƚŚŝƐĂŶĂůǇƐŝƐ͕ŶŽŶͲĐĂƌĐŝŶŽŐĞŶŝĐĞǆƉŽƐƵƌĞƐůĞƐƐƚŚĂŶϭ͘ϬĂƌĞĐŽŶƐŝĚĞƌĞĚ ůĞƐƐƚŚĂŶƐŝŐŶŝĨŝĐĂŶƚ͘

4.2 Methodology
dŚŝƐ ,Z ĞǀĂůƵĂƚĞƐ ƉŽƚĞŶƚŝĂů ŚĞĂůƚŚ ƌŝƐŬƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ ĞŵŝƐƐŝŽŶ ŽĨ ĚŝĞƐĞů ƉĂƌƚŝĐƵůĂƚĞ ŵĂƚƚĞƌ ƌĞƐƵůƚŝŶŐ ĨƌŽŵ ƚŚĞ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ƚŚĞ ƉƌŽƉŽƐĞĚ WƌŽũĞĐƚ͘ ŽŶƐƚƌƵĐƚŝŽŶ ĞƋƵŝƉŵĞŶƚ ĂŶĚ ĂƐƐŽĐŝĂƚĞĚ ŚĞĂǀǇͲĚƵƚǇƚƌƵĐŬƚƌĂĨĨŝĐŐĞŶĞƌĂƚĞĚŝĞƐĞůĞǆŚĂƵƐƚ͕ǁŚŝĐŚŝƐĂŬŶŽǁŶd͘ŝĞƐĞůĞǆŚĂƵƐƚĨƌŽŵĐŽŶƐƚƌƵĐƚŝŽŶ ĞƋƵŝƉŵĞŶƚŽƉĞƌĂƚŝŶŐĂƚƚŚĞƐŝƚĞƉŽƐĞƐĂŚĞĂůƚŚƌŝƐŬƚŽŶĞĂƌďǇƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐ͘KƉĞƌĂƚŝŽŶĂůĂĐƚŝǀŝƚŝĞƐ ǁŽƵůĚĂůƐŽŝŶĐůƵĚĞƚŚĞƵƐĞŽĨŚĞĂǀǇͲĚƵƚǇĚŝĞƐĞůƚƌƵĐŬƐ͘ ŽŶƐƚƌƵĐƚŝŽŶ^ŽƵƌĐĞƐ
ŽŶƐƚƌƵĐƚŝŽŶ ǁŽƵůĚ ŐĞŶĞƌĂƚĞ WD ĞŵŝƐƐŝŽŶƐ ĨƌŽŵ ƚŚĞ ƵƐĞ ŽĨ ŽĨĨͲƌŽĂĚ ĚŝĞƐĞů ĞƋƵŝƉŵĞŶƚ ƌĞƋƵŝƌĞĚ ĨŽƌ ĚĞŵŽůŝƚŝŽŶ͕ŐƌĂĚŝŶŐĂŶĚĞǆĐĂǀĂƚŝŽŶ͕ƉĂǀŝŶŐ͕ĂŶĚŽƚŚĞƌĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐ͘&ŽƌĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚǇ͕ WDŝƐƚŚĞƉƌŝŵĂƌǇƚŽǆŝĐĂŝƌĐŽŶƚĂŵŝŶĂŶƚŽĨĐŽŶĐĞƌŶ͘KŶͲƌŽĂĚĚŝĞƐĞůͲƉŽǁĞƌĞĚŚĂƵůƚƌƵĐŬƐƚƌĂǀĞůŝŶŐƚŽĂŶĚ 260
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϰ
ĨƌŽŵƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶĂƌĞĂƚŽĚĞůŝǀĞƌŵĂƚĞƌŝĂůƐĂŶĚĞƋƵŝƉŵĞŶƚǁĞƌĞŝŶĐůƵĚĞĚŝŶƚŚĞĂŶĂůǇƐŝƐ͕ĂůƚŚŽƵŐŚ ƚŚĞǇĂƌĞ ƚǇƉŝĐĂůůǇůĞƐƐŽĨĂĐŽŶĐĞƌŶďĞĐĂƵƐĞ ƚŚĞǇǁŽƵůĚŶŽƚ ƐƚĂǇŽŶ ƚŚĞ ƐŝƚĞ ĨŽƌůŽŶŐĚƵƌĂƚŝŽŶƐ͘ŝĞƐĞů ĞǆŚĂƵƐƚ ĨƌŽŵ ĐŽŶƐƚƌƵĐƚŝŽŶ ĞƋƵŝƉŵĞŶƚ ŽƉĞƌĂƚŝŶŐ Ăƚ ƚŚĞ ƐŝƚĞ ƉŽƚĞŶƚŝĂůůǇ ƉŽƐĞƐ Ă ŚĞĂůƚŚ ƌŝƐŬ ƚŽ ŶĞĂƌďǇ ƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐ͘dŚĞĐůŽƐĞƐƚƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐƚŽƚŚĞWƌŽũĞĐƚƐŝƚĞĂƌĞƌĞƐŝĚĞŶĐĞƐůŽĐĂƚĞĚϭϱϱĨĞĞƚĂǁĂǇ ĨƌŽŵƚŚĞƐŽƵƚŚďŽƵŶĚĂƌǇŽĨƚŚĞWƌŽũĞĐƚƐŝƚĞ͘
,ĞĂůƚŚͲƌĞůĂƚĞĚ ƌŝƐŬƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĚŝĞƐĞůͲĞǆŚĂƵƐƚĞŵŝƐƐŝŽŶƐĂƌĞƉƌŝŵĂƌŝůǇůŝŶŬĞĚƚŽůŽŶŐͲƚĞƌŵĞǆƉŽƐƵƌĞ ĂŶĚƚŚĞĂƐƐŽĐŝĂƚĞĚƌŝƐŬŽĨĐŽŶƚƌĂĐƚŝŶŐĐĂŶĐĞƌ͘dŚĞƵƐĞŽĨĚŝĞƐĞůͲƉŽǁĞƌĞĚĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚǁŽƵůĚ ďĞĞƉŝƐŽĚŝĐĂŶĚǁŽƵůĚŽĐĐƵƌƚŚƌŽƵŐŚŽƵƚƚŚĞWƌŽũĞĐƚƐŝƚĞ͘ŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐǁŽƵůĚůŝŵŝƚŝĚůŝŶŐƚŽŶŽ ŵŽƌĞƚŚĂŶĨŝǀĞŵŝŶƵƚĞƐ͕ǁŚŝĐŚǁŽƵůĚĨƵƌƚŚĞƌƌĞĚƵĐĞŶĞĂƌďǇƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐ͛ĞǆƉŽƐƵƌĞƚŽƚĞŵƉŽƌĂƌǇ ĂŶĚǀĂƌŝĂďůĞWDĞŵŝƐƐŝŽŶƐ͘&ƵƌƚŚĞƌŵŽƌĞ͕ĞǀĞŶĚƵƌŝŶŐƚŚĞŵŽƐƚŝŶƚĞŶƐĞƉĞƌŝŽĚ ŽĨĐŽŶƐƚƌƵĐƚŝŽŶ͕ĞŵŝƐƐŝŽŶƐ ŽĨWDǁŽƵůĚďĞŐĞŶĞƌĂƚĞĚĨƌŽŵĚŝĨĨĞƌĞŶƚůŽĐĂƚŝŽŶƐŽŶƚŚĞWƌŽũĞĐƚ^ŝƚĞƌĂƚŚĞƌƚŚĂŶŝŶĂƐŝŶŐůĞůŽĐĂƚŝŽŶ ďĞĐĂƵƐĞĚŝĨĨĞƌĞŶƚƚǇƉĞƐŽĨĐŽŶƐƚƌƵĐƚŝŽŶĂĐƚŝǀŝƚŝĞƐ;Ğ͘Ő͕͘ƐŝƚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚďƵŝůĚŝŶŐĐŽŶƐƚƌƵĐƚŝŽŶͿǁŽƵůĚ ŶŽƚŽĐĐƵƌĂƚƚŚĞƐĂŵĞƉůĂĐĞĂƚƚŚĞƐĂŵĞƚŝŵĞ͘
KƉĞƌĂƚŝŽŶĂů^ŽƵƌĐĞƐ
ƵĞƚŽƚŚĞŝŶĐƌĞĂƐĞĚƚƌƵĐŬƚƌĂĨĨŝĐĨƌŽŵƚŚĞWƌŽũĞĐƚ͕ƚŚĞƌĞƐƵůƚŝŶŐĞŵŝƐƐŝŽŶƐĐŽƵůĚĂůƐŽƌĞƐƵůƚŝŶƉŽůůƵƚĂŶƚ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐĂƚĞǆŝƐƚŝŶŐƐĞŶƐŝƚŝǀĞƌĞĐĞƉƚŽƌƐ͘ǀĞƌĂŐĞĚĂŝůǇƚƌŝƉƐĨƌŽŵƚƌƵĐŬƚƌĂĨĨŝĐƚŽƚŚĞWƌŽũĞĐƚǁĞƌĞ ŽďƚĂŝŶĞĚĨƌŽŵƚŚĞWƌŽũĞĐƚ dƌĂĨĨŝĐ/ŵƉĂĐƚ^ƚƵĚǇ;DĂǇϮϬϮϭͿ͘ ŵŝƐƐŝŽŶƌĂƚĞƐĨŽƌǀĞŚŝĐůĞƌƵŶŶŝŶŐĂŶĚŝĚůŝŶŐ
ĨŽƌ WDϭϬ ;WDͿ ǁĂƐ ĐĂůĐƵůĂƚĞĚ ƵƐŝŶŐ ƚƌŝƉ ĚĂƚĂ ĂŶĚ Z ϮϬϭϳ DŝƐƐŝŽŶ &ƚŽƌ ŵŽĚĞů ǀĞƌƐŝŽŶ ϭ͘Ϭ͘Ϯ
;
D&Ϳϱ ĚĂƚĂĨŽƌ^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚǇ͖ƌĞĨĞƌƚŽƉƉĞŶĚŝǆ͘ dŚĞĞŵŝƐƐŝŽŶƐƌĂƚĞǁĂƐĐĂůĐƵůĂƚĞĚƵƐŝŶŐ ϮϬϮϮĞŵŝƐƐŝŽŶƐĨĂĐƚŽƌƐƐŝŶĐĞWƌŽũĞĐƚĐŽŶƐƚƌƵĐƚŝŽŶǁŽƵůĚďĞĐŽŵƉůĞƚĞĚŝŶůĂƚĞͲϮϬϮϭ͘dŚĞƚŚŝƌĚƚƌŝŵĞƐƚĞƌ ĞǆƉŽƐƵƌĞƵƐĞĚŽƉĞŶŝŶŐ ǇĞĂƌ;ϮϬϮϮͿĞŵŝƐƐŝŽŶƐ ĨĂĐƚŽƌƐ͕ϮͲǇĞĂƌ ĨĂĐƚŽƌƐ;ĨŽƌŝŶĨĂŶƚĞǆƉŽƐƵƌĞͿƌĞĨůĞĐƚǇĞĂƌƐ ϮϬϮϯ ĂŶĚ ϮϬϮϰ ƵƐŝŶŐϮϬϮϯĞŵŝƐƐŝŽŶƐĨĂĐƚŽƌƐ͕ϭϰͲǇĞĂƌĂǀĞƌĂŐĞĨĂĐƚŽƌƐ;ĨŽƌĐŚŝůĚĞǆƉŽƐƵƌĞĚƵƌŝŶŐǇĞĂƌƐϮͲ ϭϲͿ ƌĞĨůĞĐƚ ĞŵŝƐƐŝŽŶƐ ĚƵƌŝŶŐ ƚŚĞ ĨŝƌƐƚ ϭϰ ǇĞĂƌƐ ŽĨ ŽƉĞƌĂƚŝŽŶ ĂĨƚĞƌ ŝŶĨĂŶĐǇ ;ϮϬϮϱ ƚŽ ϮϬϯϴͿ ƵƐŝŶŐ ϮϬϮϱ ĞŵŝƐƐŝŽŶƐĨĂĐƚŽƌƐ͕ĂŶĚƚŚĞƐĞĐŽŶĚϭϰ ǇĞĂƌƐŽĨĞǆƉŽƐƵƌĞ;ǇĞĂƌƐϮϬϯϵͲϮϬϱϮͿƵƐŝŶŐϮϬϯϵĞŵŝƐƐŝŽŶƐĨĂĐƚŽƌƐ ǁĞƌĞƵƐĞĚĨŽƌĂƐƐĞƐƐŵĞŶƚŽĨĞǆƉŽƐƵƌĞĚƵƌŝŶŐ ǇĞĂƌƐϭϲƚŽϯϬĂŶĚǁĞƌĞĚĞƌŝǀĞĚĨŽƌƚŚĞ^ŽƵƚŚŽĂƐƚWŽƌƚŝŽŶ ŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ŽƵŶƚǇ͘ dŚĞĂŶĂůǇƐŝƐŝŶĐůƵĚĞƐŽŶƐŝƚĞŝĚůŝŶŐĂŶĚƚƌƵĐŬƚƌĂĨĨŝĐŽŶƚŚĞĨŽůůŽǁŝŶŐƌŽĂĚǁĂǇƐ ĂŶĚǀĞŚŝĐůĞƐƉĞĞĚƐĂƌĞ͗
x ŽŶsŝĞǁǀĞŶƵĞ;ϮϱƚŽϰϬŵŝůĞƐƉĞƌŚŽƵƌͿ
x WŚŝůĂĚĞůƉŚŝĂ^ƚƌĞĞƚ;ϰϬŵŝůĞƐƉĞƌŚŽƵƌͿ
x
ƵĐůŝĚǀĞŶƵĞ;ϰϬŵŝůĞƐƉĞƌŚŽƵƌͿ
x 'ƌŽǀĞǀĞŶƵĞ;ϰϬŵŝůĞƐƉĞƌŚŽƵƌͿ
x KŶƐŝƚĞdƌƵĐŬdƌĂĨĨŝĐ;ϭϱ ŵŝůĞƐƉĞƌŚŽƵƌͿ
ŝƐƉĞƌƐŝŽŶDŽĚĞůŝŶŐ
dŚĞĂŝƌĚŝƐƉĞƌƐŝŽŶŵŽĚĞůŝŶŐĨŽƌƚŚĞ,ZǁĂƐƉĞƌĨŽƌŵĞĚƵƐŝŶŐƚŚĞh͘^͘ W
ZDKĚŝƐƉĞƌƐŝŽŶŵŽĚĞů͘

ZDKŝƐĂƐƚĞĂĚǇͲƐƚĂƚĞ͕ŵƵůƚŝƉůĞͲƐŽƵƌĐĞ͕'ĂƵƐƐŝĂŶĚŝƐƉĞƌƐŝŽŶŵŽĚĞůĚĞƐŝŐŶĞĚ ĨŽƌƵƐĞǁŝƚŚĞŵŝƐƐŝŽŶ ƐŽƵƌĐĞƐƐŝƚƵĂƚĞĚŝŶ ƚĞƌƌĂŝŶǁŚĞƌĞŐƌŽƵŶĚĞůĞǀĂƚŝŽŶƐĐĂŶĞǆĐĞĞĚƚŚĞƐƚĂĐŬŚĞŝŐŚƚƐŽĨƚŚĞĞŵŝƐƐŝŽŶƐŽƵƌĐĞƐ ;ŶŽƚĂĨĂĐƚŽƌŝŶƚŚŝƐĐĂƐĞͿ͘
ZDKƌĞƋƵŝƌĞƐŚŽƵƌůǇŵĞƚĞŽƌŽůŽŐŝĐĂůĚĂƚĂĐŽŶƐŝƐƚŝŶŐŽĨǁŝŶĚǀĞĐƚŽƌ͕ǁŝŶĚ ƐƉĞĞĚ͕ ƚĞŵƉĞƌĂƚƵƌĞ͕ ƐƚĂďŝůŝƚǇ ĐůĂƐƐ͕ ĂŶĚ ŵŝǆŝŶŐ ŚĞŝŐŚƚ͘ ^ƵƌĨĂĐĞ ĂŶĚ ƵƉƉĞƌ Ăŝƌ ŵĞƚĞŽƌŽůŽŐŝĐĂů ĚĂƚĂ ŝƐ ƉƌŽǀŝĚĞĚďǇƚŚĞ^YD͘^ƵƌĨĂĐĞĂŶĚƵƉƉĞƌĂŝƌŵĞƚĞŽƌŽůŽŐŝĐĂůĚĂƚĂĨƌŽŵƚŚĞ&ŽŶƚĂŶĂ DŽŶŝƚŽƌŝŶŐ^ƚĂƚŝŽŶ ǁĂƐƐĞůĞĐƚĞĚĂƐďĞŝŶŐƚŚĞŵŽƐƚƌĞƉƌĞƐĞŶƚĂƚŝǀĞĨŽƌŵĞƚĞŽƌŽůŽŐǇďĂƐĞĚŽŶƉƌŽǆŝŵŝƚǇƚŽƚŚĞWƌŽũĞĐƚ ƐŝƚĞ͘ ϱ ĂůŝĨŽƌŶŝĂŝƌZĞƐŽƵƌĐĞƐŽĂƌĚ͕
D&ϮϬϭϳtĞďĂƚĂďĂƐĞ͕ ǁǁǁ͘Ăƌď͘ĐĂ͘ŐŽǀͬĞŵĨĂĐͬϮϬϭϳ͕ͬĂĐĐĞƐƐĞĚ&ĞďƌƵĂƌǇϮϬϮϭ͘ 261
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϱ
dŚĞ
ZDKĞŵŝƐƐŝŽŶƐŽƵƌĐĞ ĨŽƌĐŽŶƐƚƌƵĐƚŝŽŶĂƌĞůŝŶĞǀŽůƵŵĞƐŽƵƌĐĞƐ ;ĐŽŵƉƌŝƐĞĚŽĨƐŵĂůůĞƌ ĂĚũĂĐĞŶƚ ǀŽůƵŵĞƐŽƵƌĐĞƐͿϲ ƚŚƌŽƵŐŚŽƵƚƚŚĞWƌŽũĞĐƚƐŝƚĞ͘,ĞĂǀǇĚƵƚǇǀĞŚŝĐůĞĞŵŝƐƐŝŽŶƐǁĞƌĞĂƐƐŝŐŶĞĚĂƌĞůĞĂƐĞŚĞŝŐŚƚ ;ŝ͘Ğ͕͘ĂǀĞƌĂŐĞƐƚĂĐŬŚĞŝŐŚƚͿŽĨϭϮĨĞĞƚ;ϯ͘ϲ ŵĞƚĞƌƐͿ͕ĂŶĚĂƉůƵŵĞŚĞŝŐŚƚŽĨϮϬ͘ϰĨĞĞƚ;ϲ͘ϮϮŵĞƚĞƌƐͿ͘ ZDK
ǁĂƐƌƵŶƚŽŽďƚĂŝŶƚŚĞϭͲŚŽƵƌĂŶĚ ĂŶŶƵĂůĂǀĞƌĂŐĞĐŽŶĐĞŶƚƌĂƚŝŽŶ ŝŶŵŝĐƌŽŐƌĂŵƐƉĞƌĐƵďŝĐŵĞƚĞƌ;ʅŐͬŵϯ Ϳ
ŽĨ WDϭϬ Ăƚ ƚŚĞ ŶĞĂƌďǇ ƐĞŶƐŝƚŝǀĞ ƌĞĐĞƉƚŽƌƐ͘ ĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞ ^YD͛Ɛ ^ƵƉƉůĞŵĞŶƚĂů 'ƵŝĚĞůŝŶĞƐ ĨŽƌ WƌĞƉĂƌŝŶŐZŝƐŬƐƐĞƐƐŵĞŶƚƐĨŽƌϮϱϴϴ͕ĂŝƌĚŝƐƉĞƌƐŝŽŶŵŽĚĞůŝŶŐŝƐƌĞƋƵŝƌĞĚƚŽĞƐƚŝŵĂƚĞ ĂŶŶƵĂůĂǀĞƌĂŐĞ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐ ƚŽĐĂůĐƵůĂƚĞ ƚŚĞDĂǆŝŵƵŵ/ŶĚŝǀŝĚƵĂůĂŶĐĞƌZŝƐŬ;D/ZͿ͕ ƚŚĞŵĂǆŝŵƵŵĐŚƌŽŶŝĐ,/͕ ƚŚĞ ǌŽŶĞƐŽĨŝŵƉĂĐƚ͕ĂŶĚĞǆĐĞƐƐĐĂŶĐĞƌďƵƌĚĞŶ͕ĂƐǁĞůůĂƐ ƉĞĂŬŚŽƵƌůǇĐŽŶĐĞŶƚƌĂƚŝŽŶƐƚŽĐĂůĐƵůĂƚĞ ƚŚĞŚĞĂůƚŚ ŝŵƉĂĐƚĨƌŽŵƐƵďƐƚĂŶĐĞƐǁŝƚŚĂĐƵƚĞŶŽŶͲĐĂŶĐĞƌŚĞĂůƚŚĞĨĨĞĐƚƐ͘dŽĂĐŚŝĞǀĞƚŚĞƐĞŐŽĂůƐ͕ĂƌĞĐĞƉƚŽƌŐƌŝĚ ǁĂƐ ƉůĂĐĞĚŽǀĞƌƚŚĞWƌŽũĞĐƚ ƐŝƚĞƚŽĐŽǀĞƌƚŚĞǌŽŶĞŽĨŝŵƉĂĐƚ͘ĐĐŽƌĚŝŶŐƚŽƚŚĞ^YD͕ŝŶŽƌĚĞƌ͞ƚŽŝĚĞŶƚŝĨǇ ƚŚĞŵĂǆŝŵƵŵŝŵƉĂĐƚĞĚ ƌĞĐĞƉƚŽƌƐ ;ŝ͘Ğ͘ ƉĞĂŬĐĂŶĐĞƌƌŝƐŬĂŶĚƉĞĂŬŚĂǌĂƌĚŝŶĚŝĐĞƐͿĂŐƌŝĚƐƉĂĐŝŶŐŽĨϭϬϬ ŵĞƚĞƌƐŽƌůĞƐƐŵƵƐƚďĞƵƐĞĚ͟;ƐĞĞƉĂŐĞϭϲŽĨ^YD͛Ɛ^ƵƉƉůĞŵĞŶƚĂů'ƵŝĚĞůŝŶĞƐͿ͘ƵĞƚŽƚŚĞƐŝǌĞŽĨƚŚĞ WƌŽũĞĐƚ ƐŝƚĞ͕ƌĞĐĞƉƚŽƌƐǁĞƌĞ ŵŽĚĞůĞĚǁŝƚŚĂϱϬͲŵĞƚĞƌŐƌŝĚƐƉĂĐŝŶŐ͘/ŶĂĚĚŝƚŝŽŶ͕EĂƚŝŽŶĂů ůĞǀĂƚŝŽŶĂƚĂƐĞƚ
;E
ͿƚĞƌƌĂŝŶĚĂƚĂǁĂƐŝŵƉŽƌƚĞĚ ŝŶƚŽ
ZDKĨŽƌƚŚĞWƌŽũĞĐƚ͘dŚĞŵŽĚĞůŝŶŐĂŶĚĂŶĂůǇƐŝƐǁĞƌĞ ƉƌĞƉĂƌĞĚ ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^YDDŽĚĞůŝŶŐ'ƵŝĚĂŶĐĞĨŽƌ
ZDK͘ϳ
EŽƚĞ ƚŚĂƚ ƚŚĞ ĐŽŶĐĞŶƚƌĂƚŝŽŶ ĞƐƚŝŵĂƚĞ ĚĞǀĞůŽƉĞĚ ƵƐŝŶŐ ƚŚŝƐ ŵĞƚŚŽĚŽůŽŐǇ ŝƐ ĐŽŶƐĞƌǀĂƚŝǀĞ ĂŶĚ ŝƐ ŶŽƚ Ă ƐƉĞĐŝĨŝĐƉƌĞĚŝĐƚŝŽŶŽĨƚŚĞĂĐƚƵĂůĐŽŶĐĞŶƚƌĂƚŝŽŶƐƚŚĂƚǁŽƵůĚŽĐĐƵƌĂƚƚŚĞWƌŽũĞĐƚ ƐŝƚĞĂŶǇŽŶĞƉŽŝŶƚŝŶƚŝŵĞ͘ ĐƚƵĂů ϭͲŚŽƵƌ ĂŶĚ ĂŶŶƵĂů ĂǀĞƌĂŐĞ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐ ĂƌĞ ĚĞƉĞŶĚĞŶƚ ŽŶ ŵĂŶǇ ǀĂƌŝĂďůĞƐ͕ ƉĂƌƚŝĐƵůĂƌůǇ ƚŚĞ ŶƵŵďĞƌĂŶĚƚǇƉĞŽĨǀĞŚŝĐůĞƐĂŶĚĞƋƵŝƉŵĞŶƚŽƉĞƌĂƚŝŶŐĂƚƐƉĞĐŝĨŝĐĚŝƐƚĂŶĐĞƐĚƵƌŝŶŐƚŝŵĞƉĞƌŝŽĚƐŽĨĂĚǀĞƌƐĞ ŵĞƚĞŽƌŽůŽŐǇ͘ ŚĞĂůƚŚƌŝƐŬĐŽŵƉƵƚĂƚŝŽŶǁĂƐƉĞƌĨŽƌŵĞĚ ƚŽĚĞƚĞƌŵŝŶĞ ƚŚĞ ƌŝƐŬŽĨĚĞǀĞůŽƉŝŶŐĂŶĞǆĐĞƐƐ ĐĂŶĐĞƌ ƌŝƐŬ ĐĂůĐƵůĂƚĞĚ ŽŶ ƚŚĞƐĞǁŽƌƐƚͲĐĂƐĞ ĞǆƉŽƐƵƌĞ ĚƵƌĂƚŝŽŶ ƐĐĞŶĂƌŝŽƐ͘dŚĞ ĐŚƌŽŶŝĐ ĂŶĚ ĐĂƌĐŝŶŽŐĞŶŝĐ ŚĞĂůƚŚ ƌŝƐŬ ĐĂůĐƵůĂƚŝŽŶƐ ĂƌĞ ďĂƐĞĚ ŽŶ ƚŚĞ ƐƚĂŶĚĂƌĚŝǌĞĚ ĞƋƵĂƚŝŽŶƐ ĐŽŶƚĂŝŶĞĚ ŝŶ ƚŚĞ K ,, 'ƵŝĚĂŶĐĞ
DĂŶƵĂů͘KŶůǇƚŚĞƌŝƐŬĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ƚŚĞǁŽƌƐƚͲĐĂƐĞůŽĐĂƚŝŽŶŽĨƚŚĞWƌŽũĞĐƚǁĂƐĂƐƐĞƐƐĞĚ͘ ,ĞĂůƚŚZŝƐŬŽŵƉƵƚĂƚŝŽŶ
ŚĞĂůƚŚ ƌŝƐŬ ĐŽŵƉƵƚĂƚŝŽŶ ǁĂƐ ƉĞƌĨŽƌŵĞĚ ƚŽ ĚĞƚĞƌŵŝŶĞ ƚŚĞ ƌŝƐŬ ŽĨ ĚĞǀĞůŽƉŝŶŐ ĂŶ ĞǆĐĞƐƐ ĐĂŶĐĞƌ ƌŝƐŬ ĐĂůĐƵůĂƚĞĚŽŶĂϯϬͲǇĞĂƌĞǆƉŽƐƵƌĞƐĐĞŶĂƌŝŽƵƐŝŶŐZ͛ƐZŝƐŬƐƐĞƐƐŵĞŶƚ^ƚĂŶĚůŽŶĞdŽŽů ;Z^dͿ͘dŚĞ ĐŚƌŽŶŝĐĂŶĚĐĂƌĐŝŶŽŐĞŶŝĐŚĞĂůƚŚƌŝƐŬĐĂůĐƵůĂƚŝŽŶƐĂƌĞďĂƐĞĚŽŶƚŚĞƐƚĂŶĚĂƌĚŝǌĞĚĞƋƵĂƚŝŽŶƐĐŽŶƚĂŝŶĞĚŝŶ ƚŚĞh͘^͘
W,ƵŵĂŶ,ĞĂůƚŚ
ǀĂůƵĂƚŝŽŶDĂŶƵĂů ;ϭϵϵϭͿĂŶĚƚŚĞK
,,'ƵŝĚĂŶĐĞDĂŶƵĂů;ϮϬϭϱͿ͘
ZŝƐŬĂŶĚ,ĂǌĂƌĚƐƐĞƐƐŵĞŶƚ
ĂŶĐĞƌZŝƐŬ
ĂƐĞĚ ŽŶ ƚŚĞ K
,, ŵĞƚŚŽĚŽůŽŐǇ͕ ƌĞƐŝĚĞŶƚŝĂů ŝŶŚĂůĂƚŝŽŶ ĐĂŶĐĞƌ ƌŝƐŬ ĨƌŽŵ ĂŶŶƵĂů ĂǀĞƌĂŐĞ WD ĂŶĚ ďĞŶǌĞŶĞĐŽŶĐĞŶƚƌĂƚŝŽŶƐĂƌĞĐĂůĐƵůĂƚĞĚďǇŵƵůƚŝƉůǇŝŶŐ ƚŚĞĚĂŝůǇŝŶŚĂůĂƚŝŽŶĚŽƐĞ͕ĐĂŶĐĞƌƉŽƚĞŶĐǇ ĨĂĐƚŽƌ͕ ĂŐĞƐĞŶƐŝƚŝǀŝƚǇĨĂĐƚŽƌ;^&Ϳ͕ĨƌĞƋƵĞŶĐǇŽĨƚŝŵĞƐƉĞŶƚĂƚŚŽŵĞ͕ĂŶĚĞǆƉŽƐƵƌĞĚƵƌĂƚŝŽŶĚŝǀŝĚĞĚďǇĂǀĞƌĂŐŝŶŐ ƚŝŵĞ͕ǇŝĞůĚŝŶŐ ƚŚĞĞǆĐĞƐƐĐĂŶĐĞƌƌŝƐŬ͘dŚĞƐĞĨĂĐƚŽƌƐĂƌĞĚŝƐĐƵƐƐĞĚŝŶŵŽƌĞĚĞƚĂŝůďĞůŽǁ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽ ŶŽƚĞƚŚĂƚĞǆƉŽƐƵƌĞĚƵƌĂƚŝŽŶŝƐďĂƐĞĚŽŶĐŽŶƚŝŶƵĂůŚĞĂǀǇƚƌƵĐŬŽƉĞƌĂƚŝŽŶĂůŽŶŐŶĞĂƌďǇƌŽĂĚǁĂǇƐ͘ ǆƉŽƐƵƌĞ
ƚŚƌŽƵŐŚŝŶŚĂůĂƚŝŽŶ;ŽƐĞͲĂŝƌͿŝƐĂ ĨƵŶĐƚŝŽŶŽĨďƌĞĂƚŚŝŶŐƌĂƚĞ͕ ĞǆƉŽƐƵƌĞ ĨƌĞƋƵĞŶĐǇ͕ĂŶĚĐŽŶĐĞŶƚƌĂƚŝŽŶŽĨ ϲ ŽŶƐƚƌƵĐƚŝŽŶĞŵŝƐƐŝŽŶƐǁŽƵůĚŽĐĐƵƌĨƌŽŵŚĞĂǀǇͲĚƵƚǇĞƋƵŝƉŵĞŶƚŽƉĞƌĂƚŝŶŐƚŚƌŽƵŐŚŽƵƚƚŚĞWƌŽũĞĐƚƐŝƚĞ͘dŚĞƐĞƐŽƵƌĐĞƐǁĞƌĞ ĐŚĂƌĂĐƚĞƌŝǌĞĚĂƐŵƵůƚŝƉůĞǀŽůƵŵĞƐŽƵƌĐĞƐ ;ŵŽĚĞůĞĚĂƐĂĚũĂĐĞŶƚůŝŶĞǀŽůƵŵĞƐŽƵƌĐĞƐƚŚĂƚĐŽǀĞƌƚŚĞĚŝƐƚƵƌďĞĚĂƌĞĂƐŽĨƚŚĞ ƉƌŽũĞĐƚƐŝƚĞͿƚŽƌĞƉƌĞƐĞŶƚĐŽŶƐƚƌƵĐƚŝŽŶĞƋƵŝƉŵĞŶƚ͘ ϳ ^ŽƵƚŚŽĂƐƚŝƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚŝƐƚƌŝĐƚ͕^YDDŽĚĞůŝŶŐ'ƵŝĚĂŶĐĞĨŽƌ ZDK͕ŚƚƚƉ͗ͬͬǁǁǁ͘ĂƋŵĚ͘ŐŽǀͬŚŽŵĞͬĂŝƌͲ
ƋƵĂůŝƚǇͬŵĞƚĞŽƌŽůŽŐŝĐĂůͲĚĂƚĂͬŵŽĚĞůŝŶŐͲŐƵŝĚĂŶĐĞ͕ĂĐĐĞƐƐĞĚ&ĞďƌƵĂƌǇϭϳ͕ϮϬϮϬ͘ 262
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϲ
ƐƵďƐƚĂŶĐĞŝŶƚŚĞĂŝƌ͘dŽĞƐƚŝŵĂƚĞĐĂŶĐĞƌƌŝƐŬ͕ƚŚĞĚŽƐĞǁĂƐĞƐƚŝŵĂƚĞĚďǇĂƉƉůǇŝŶŐƚŚĞĨŽůůŽǁŝŶŐĨŽƌŵƵůĂƚŽ ĞĂĐŚŐƌŽƵŶĚͲůĞǀĞůĐŽŶĐĞŶƚƌĂƚŝŽŶ͗
ŽƐĞͲĂŝƌсĂŝƌΎ;ZͬtͿΎΎ
&ΎϭϬͲϲ
ŽƐĞͲĂŝƌс ĚŽƐĞƚŚƌŽƵŐŚŝŶŚĂůĂƚŝŽŶ;ŵŐͬŬŐͬĚĂǇͿ
Ăŝƌ с ĂŝƌĐŽŶĐĞŶƚƌĂƚŝŽŶ;ʅŐͬŵϯ
ͿĨƌŽŵĂŝƌĚŝƐƉĞƌƐŝŽŶŵŽĚĞů
;ZͬtͿс ĚĂŝůǇďƌĞĂƚŚŝŶŐƌĂƚĞŶŽƌŵĂůŝǌĞĚƚŽďŽĚǇǁĞŝŐŚƚ;>ͬŬŐďŽĚǇǁĞŝŐŚƚͲĚĂǇͿ с ŝŶŚĂůĂƚŝŽŶ ĂďƐŽƌƉƚŝŽŶĨĂĐƚŽƌ;ƵŶŝƚůĞƐƐͿ

&с ĞǆƉŽƐƵƌĞĨƌĞƋƵĞŶĐǇ;ĂƉƉƌŽǆŝŵĂƚĞůǇϯϱϬĚĂǇƐƉĞƌǇĞĂƌĨŽƌƌĞƐŝĚĞŶƚŝĂůͿ ϭϬͲϲ с ĐŽŶǀĞƌƐŝŽŶĨĂĐƚŽƌ;ŵŝĐƌŽŐƌĂŵƐƚŽŵŝůůŝŐƌĂŵƐ͕ůŝƚĞƌƐƚŽĐƵďŝĐŵĞƚĞƌƐͿ K
,,ĚĞǀĞůŽƉĞĚ^&Ɛ ƚŽĐŽŶƐŝĚĞƌ ƚŚĞŝŶĐƌĞĂƐĞĚƐĞŶƐŝƚŝǀŝƚǇ ƚŽĐĂƌĐŝŶŽŐĞŶƐĚƵƌŝŶŐĞĂƌůǇͲůŝĨĞĞǆƉŽƐƵƌĞ͘ &ƌĂĐƚŝŽŶŽĨƚŝŵĞĂƚŚŽŵĞ;&,ͿĚƵƌŝŶŐƚŚĞĚĂǇŝƐƵƐĞĚƚŽĂĚũƵƐƚĞǆƉŽƐƵƌĞĚƵƌĂƚŝŽŶĂŶĚĐĂŶĐĞƌƌŝƐŬĨƌŽŵĂ ƐƉĞĐŝĨŝĐ ĨĂĐŝůŝƚǇ͛ƐĞŵŝƐƐŝŽŶƐ͕ ďĂƐĞĚ ŽŶ ƚŚĞ ĂƐƐƵŵƉƚŝŽŶ ƚŚĂƚĞǆƉŽƐƵƌĞ ƚŽ ƚŚĞ ĨĂĐŝůŝƚǇ͛ƐĞŵŝƐƐŝŽŶƐĂƌĞ ŶŽƚ ŽĐĐƵƌƌŝŶŐĂǁĂǇĨƌŽŵŚŽŵĞ͘dŚĞĨĂĐƚŽƌƐƵƐĞĚŝŶƚŚĞŚĞĂůƚŚƌŝƐŬĂƐƐĞƐƐŵĞŶƚĂƌĞƐŚŽǁŶŝŶdĂďůĞϮ͗ĞĨĂƵůƚ ŐĞ^ĞŶƐŝƚŝǀŝƚǇ&ĂĐƚŽƌƐ͕ &ƌĂĐƚŝŽŶŽĨdŝŵĞĂƚ,ŽŵĞ͕ŶĚĂŝůǇƌĞĂƚŚŝŶŐZĂƚĞƐ͘ dĂďůĞϮ͗ĞĨĂƵůƚŐĞ^ĞŶƐŝƚŝǀŝƚǇ&ĂĐƚŽƌƐ͕ &ƌĂĐƚŝŽŶ ŽĨdŝŵĞĂƚ,ŽŵĞ͕ĂŶĚĂŝůǇƌĞĂƚŚŝŶŐZĂƚĞƐ ŐĞ ĞĨĂƵůƚŐĞ^ĞŶƐŝƚŝǀŝƚǇ
&ĂĐƚŽƌϭ ;^&Ϳ
&ƌĂĐƚŝŽŶŽĨdŝŵĞĂƚ,ŽŵĞ
;&,Ϳ
ĂŝůǇƌĞĂƚŚŝŶŐZĂƚĞ
;>ͬŬŐtͲĚĂǇϮͿ
dŚŝƌĚƚƌŝŵĞƐƚĞƌ ϭϬ ϭϬϬй ϯϲϭ
ϬƚŽϮǇĞĂƌƐ ϭϬ ϭϬϬй ϭ͕ϬϵϬ
ŐĞƐϮƚŚƌŽƵŐŚϭϱǇĞĂƌƐ ϯ ϭϬϬй ϳϰϱ
ŐĞƐϭϲĂŶĚŐƌĞĂƚĞƌ ϭ ϳϯй ϯϯϱ
ϭ͘ ĐĐŽƵŶƚƐĨŽƌƉŽƚĞŶƚŝĂůŝŶĐƌĞĂƐĞĚƐĞŶƐŝƚŝǀŝƚǇƚŽĐĂƌĐŝŶŽŐĞŶƐĚƵƌŝŶŐĐŚŝůĚŚŽŽĚ͘ Ϯ͘ ϵϱƚŚ ƉĞƌĐĞŶƚŝůĞĚĂŝůǇďƌĞĂƚŚŝŶŐƌĂƚĞŶŽƌŵĂůŝǌĞĚƚŽďŽĚǇǁĞŝŐŚƚ;>ͬŬŐďŽĚǇǁĞŝŐŚƚͲ ĚĂǇͿ ^ŽƵƌĐĞ͗ĂůŝĨŽƌŶŝĂKĨĨŝĐĞŽĨ
ŶǀŝƌŽŶŵĞŶƚĂů,ĞĂůƚŚ,ĂǌĂƌĚƐƐĞƐƐŵĞŶƚ͕ŝƌdŽǆŝĐƐWƌŽŐƌĂŵ'ƵŝĚĂŶĐĞDĂŶƵĂůĨŽƌƚŚĞWƌĞƉĂƌĂƚŝŽŶŽĨ,ĞĂůƚŚZŝƐŬ ƐƐĞƐƐŵĞŶƚƐ͕&ĞďƌƵĂƌǇϮϬϭϱ͘
dŽĞƐƚŝŵĂƚĞƚŚĞĐĂŶĐĞƌƌŝƐŬ͕ƚŚĞĚŽƐĞŝƐŵƵůƚŝƉůŝĞĚďǇƚŚĞĐĂŶĐĞƌƉŽƚĞŶĐǇ ĨĂĐƚŽƌ͕ƚŚĞ^&͕ƚŚĞĞǆƉŽƐƵƌĞ ĚƵƌĂƚŝŽŶĚŝǀŝĚĞĚďǇĂǀĞƌĂŐŝŶŐƚŝŵĞ͕ ĂŶĚƚŚĞĨƌĞƋƵĞŶĐǇŽĨƚŝŵĞƐƉĞŶƚĂƚŚŽŵĞ;ĨŽƌƌĞƐŝĚĞŶƚƐŽŶůǇͿ͗ ZŝƐŬŝŶŚͲƌĞƐ с;ŽƐĞĂŝƌΎW&Ύ^&Ύ;
ͬdͿΎ&,Ϳ
ZŝƐŬŝŶŚͲƌĞƐ с ƌĞƐŝĚĞŶƚŝĂůŝŶŚĂůĂƚŝŽŶĐĂŶĐĞƌƌŝƐŬ;ƉŽƚĞŶƚŝĂůĐŚĂŶĐĞƐƉĞƌŵŝůůŝŽŶͿ ŽƐĞĂŝƌ с ĚĂŝůǇĚŽƐĞƚŚƌŽƵŐŚŝŶŚĂůĂƚŝŽŶ;ŵŐͬŬŐͲĚĂǇͿ
W&с ŝŶŚĂůĂƚŝŽŶĐĂŶĐĞƌƉŽƚĞŶĐǇĨĂĐƚŽƌ;ŵŐͬŬŐͲĚĂǇͲϭͿ
^&с ĂŐĞƐĞŶƐŝƚŝǀŝƚǇĨĂĐƚŽƌĨŽƌĂƐƉĞĐŝĨŝĞĚĂŐĞŐƌŽƵƉ;ƵŶŝƚůĞƐƐͿ

с ĞǆƉŽƐƵƌĞĚƵƌĂƚŝŽŶ;ǇĞĂƌƐͿ
dс ĂǀĞƌĂŐŝŶŐƚŝŵĞŽĨůŝĨĞƚŝŵĞĐĂŶĐĞƌƌŝƐŬ;ǇĞĂƌƐͿ
&,с ĨƌĂĐƚŝŽŶŽĨƚŝŵĞƐƉĞŶƚĂƚŚŽŵĞ;ƵŶŝƚůĞƐƐͿ
ŚƌŽŶŝĐEŽŶͲĂŶĐĞƌ,ĂǌĂƌĚ
EŽŶͲĐĂŶĐĞƌĐŚƌŽŶŝĐŝŵƉĂĐƚƐĂƌĞĐĂůĐƵůĂƚĞĚďǇĚŝǀŝĚŝŶŐƚŚĞĂŶŶƵĂůĂǀĞƌĂŐĞĐŽŶĐĞŶƚƌĂƚŝŽŶďǇƚŚĞZ >ĨŽƌ
ƚŚĂƚƐƵďƐƚĂŶĐĞ͘dŚĞZ
>ŝƐĚĞĨŝŶĞĚĂƐƚŚĞĐŽŶĐĞŶƚƌĂƚŝŽŶĂƚǁŚŝĐŚŶŽĂĚǀĞƌƐĞŶŽŶͲĐĂŶĐĞƌŚĞĂůƚŚĞĨĨĞĐƚƐĂƌĞ ĂŶƚŝĐŝƉĂƚĞĚ͘dŚĞĨŽůůŽǁŝŶŐĞƋƵĂƚŝŽŶǁĂƐƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞŶŽŶͲĐĂŶĐĞƌƌŝƐŬ͗ 263
ŝƚǇŽĨKŶƚĂƌŝŽ ŽŶsŝĞǁWƌŽũĞĐƚ
,ĞĂůƚŚZŝƐŬƐƐĞƐƐŵĞŶƚ
ƵŐƵƐƚϮϬϮϭ
WĂŐĞͮϭϳ
,ĂǌĂƌĚYƵŽƚŝĞŶƚсŝͬZ
>ŝ
ŝ с ĐŽŶĐĞŶƚƌĂƚŝŽŶŝŶƚŚĞĂŝƌŽĨƐƵďƐƚĂŶĐĞŝ;ĂŶŶƵĂůĂǀĞƌĂŐĞĐŽŶĐĞŶƚƌĂƚŝŽŶŝŶʅŐͬŵϯͿ Z
>ŝ с ĐŚƌŽŶŝĐŶŽŶĐĂŶĐĞƌZĞĨĞƌĞŶĐĞ
ǆƉŽƐƵƌĞ>ĞǀĞůĨŽƌƐƵďƐƚĂŶĐĞ;ʅŐͬŵϯ
Ϳ
ĐƵƚĞEŽŶͲĂŶĐĞƌ,ĂǌĂƌĚ
dŚĞƉŽƚĞŶƚŝĂůĨŽƌĂĐƵƚĞŶŽŶͲĐĂŶĐĞƌŚĂǌĂƌĚƐŝƐĞǀĂůƵĂƚĞĚďǇĐŽŵƉĂƌŝŶŐƚŚĞŵĂǆŝŵƵŵƐŚŽƌƚͲƚĞƌŵĞǆƉŽƐƵƌĞ ůĞǀĞů ƚŽ ĂŶ ĂĐƵƚĞ Z
>͘ Z
>Ɛ ĂƌĞ ĚĞƐŝŐŶĞĚ ƚŽ ƉƌŽƚĞĐƚ ƐĞŶƐŝƚŝǀĞ ŝŶĚŝǀŝĚƵĂůƐ ǁŝƚŚŝŶ ƚŚĞ ƉŽƉƵůĂƚŝŽŶ͘ dŚĞ ĐĂůĐƵůĂƚŝŽŶŽĨĂĐƵƚĞŶŽŶͲĐĂŶĐĞƌŝŵƉĂĐƚƐŝƐƐŝŵŝůĂƌƚŽƚŚĞƉƌŽĐĞĚƵƌĞĨŽƌĐŚƌŽŶŝĐŶŽŶͲĐĂŶĐĞƌŝŵƉĂĐƚƐ͘dŚĞ ĞƋƵĂƚŝŽŶŝƐĂƐĨŽůůŽǁƐ͗
ĐƵƚĞ,Yс DĂǆŝŵƵŵ,ŽƵƌůǇŝƌŽŶĐĞŶƚƌĂƚŝŽŶ;ʅŐͬŵϯ
ͿͬĐƵƚĞZ
>;ʅŐͬŵϯͿ
,ĞĂůƚŚZŝƐŬŽŵƉƵƚĂƚŝŽŶ
ŚĞĂůƚŚ ƌŝƐŬ ĐŽŵƉƵƚĂƚŝŽŶ ǁĂƐ ƉĞƌĨŽƌŵĞĚ ƚŽ ĚĞƚĞƌŵŝŶĞ ƚŚĞ ƌŝƐŬ ŽĨ ĚĞǀĞůŽƉŝŶŐ ĂŶ ĞǆĐĞƐƐ ĐĂŶĐĞƌ ƌŝƐŬ ĐĂůĐƵůĂƚĞĚŽŶĂϯϬͲǇĞĂƌĞǆƉŽƐƵƌĞƐĐĞŶĂƌŝŽƵƐŝŶŐZ͛ƐZŝƐŬƐƐĞƐƐŵĞŶƚ^ƚĂŶĚůŽŶĞdŽŽů;Z^dͿ͘,ĞĂůƚŚ ƌŝƐŬ ǁĞƌĞ ĂŶĂůǇǌĞĚ Ăƚ ƚŚĞ ƉŽŝŶƚ ŽĨ ŵĂǆŝŵƵŵ ŝŵƉĂĐƚ ĂŶĚ ĂƌĞ Ă ĐŽŶƐĞƌǀĂƚŝǀĞ ĞƐƚŝŵĂƚĞ͘ dŚĞ ƉŽůůƵƚĂŶƚ ĐŽŶĐĞŶƚƌĂƚŝŽŶƐĂƌĞƚŚĞŶƵƐĞĚƚŽĞƐƚŝŵĂƚĞƚŚĞůŽŶŐͲƚĞƌŵĐĂŶĐĞƌŚĞĂůƚŚƌŝƐŬƚŽĂŶŝŶĚŝǀŝĚƵĂůĂƐǁĞůůĂƐƚŚĞ ŶŽŶͲĐĂŶĐĞƌĐŚƌŽŶŝĐŚĞĂůƚŚŝŶĚĞǆ͘
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Ontario City CouncilMarch 1, 2022

Ontario City Council
March 1, 2022