9 c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.
14. Verification of Employment Eligibility.
By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.
15. Reserved.
16. Laws and Venue.
This Agreement shall be interpreted in accordance with the laws of the State of California.
If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 17 Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.
10 19. Organization
Consultant shall assign Bruce Brenon as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.
20. Limitation of Agreement.
This Agreement is limited to and includes only the work included in the Project described above.
21. Notice
Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:
DISTRICT:
City of Upland
460 N. Euclid Avenue
Upland, CA 91786
Attn: City Manager
CONSULTANT:
Bapptre Landscaping, Inc. (DBA Shine
Illumination)
32773 Calle Perfecto
San Juan Capistrano, CA 92675
Attn: Bruce Brenon
and shall be effective upon receipt thereof.
22. Third Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
23. Equal Opportunity Employment.
Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
24. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.
25. Severability
11 The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal.
26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
27. Non-Waiver
None of the provisions of this Agreement shall be considered waived by either Party, unless such waiver is specifically specified in writing.
28. Time of Essence
Time is of the essence for each and every provision of this Agreement.
29. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.
30. Prohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
[SIGNATURES ON FOLLOWING PAGE]
12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN CITY OF UPLAND
AND BAPPTRE LANDSCAPING, INC. d/b/a SHINE ILLUMINATION
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF UPLAND BAPPTRE LANDSCAPING, INC. d/b/a SHINE
ILLUMINATION)
By: By:
Michael Blay
City Manager Its:
Printed Name:
ATTEST:
By:
Keri Johnson
City Clerk
APPROVED AS TO LEGAL FORM:
By: ________________________
Stephen Dietsch
City Attorney
President
Bruce Brenon
13 EXHIBIT A
Scope of Services
INSTALLATION. Shine Illumination shall supervise and direct the installation of holiday lighting and decorations (the “Decorations”) at the project site (the “Property”) as set forth in Exhibit B of this Agreement for each of the holiday seasons during the Term (the “Installation”). The scope of the decorations to be installed by Shine Illumination during each Installation is described in more detail in Exhibit B. Installation dates are approximate and generally scheduled as a date range.
All installation dates specified are subject to change due to inclement weather, or unforeseen circumstances beyond Shine Illumination’s control. Shine Illumination will use commercially reasonable efforts to complete the Installation (subject to full cooperation by City in connection with the Installation) of Holiday Decorations on or before November 15th for each holiday season during the Term of the Agreement. The City acknowledges and agrees that the completion of the Installation may be delayed due to weather and other similar events and Shine Illumination will not be liable for any such delays.
IMPORTANT: Tree Trimming by the City will be done prior to October 1st unless mutually agreed upon time is arranged.
SERVICE DURING THE HOLIDAY SEASON. Shine Illumination shall use commercially reasonable efforts to ensure that all Decorations are in working order during the holiday season from the date of Installation until January 10th, or such date set forth in the Agreement following each holiday season. In the event an issue arises with respect to the installation or functionality of any of the Decorations during the holiday season, Customer shall notify SI in writing of such issue by sending a detailed email of the issue to: [email protected], and Shine Illumination shall use commercially reasonable efforts to remedy such situation within 48 hours of such notice. Notwithstanding anything contained herein to the contrary, Shine Illumination is not responsible for issues with respect to the functionality of Decorations due to the electrical system at the Property, including functionality of electrical outlets located on the Property (including “tripped” GFIs). IF GFI BREAKERS EXIST, THEY MAY TRIP WHEN IT RAINS OR IF THERE IS MOISTURE PRESENT. THE SYSTEM WILL NEED TO BE MONITORED AND RESET BY CITY. The City will ensure that the electrical system at the Property is in compliance with local building codes and in good working order.
REMOVAL. All holiday Decorations will be removed from the Property no later than January 10th following such holiday season, unless agreed otherwise in writing by both parties hereto (the “Removal” and together with the Installation, the “Work”).
MULTI -SEASON AGREEMENTS. Lighting Agreements which cover multiple holiday seasons, Shine Illumination will send a new Estimate (based on the original Estimate) for review and acknowledgment by the City each holiday season.
14 EXHIBIT B
Schedule of Charges
1 Estimate Date :20 Apr 2023
Project Name :
2023 Holiday Lighting
Program (LIGHT
PURCHASE)
Shine Illumination - SHILL
32773 Calle Perfecto
San Juan Capistrano
92675
U.S.A
Estimate
# EST-001659
Bill To
City of Upland
,
# Item & Description Qty Rate Amount
TREE LIGHTING ON 9TH AND 2ND (PURCHASE) *These can be installed for the summer and left up for season. *Includes Removal Price prior to next years install. *PERMANENT LIGHTING 1 COMMERCIAL GRADE MINI LIGHTS
-Low Voltage
-Warm White
-Grey Wire
-Coxial Connection
*6" spacing from the Y of the tree (approx 6' up- to stay away from pedestrians) to maximize height in the canopy
-Approx 60 additional for repairs (5%)
1,350 20.96 28,296.00
2 TRANSFORMERS:
100W Transformer for low voltage Lights
- 3 Per Tree
Includes (4) additional for repairs
NOTE: These will be able to be reused for year 2.
100 98.96 9,896.00
3 SPLITTERS FOR TOP OF PALM:
(4) Per Tree - Coupling Series
Includes (12) Additional for repairs
NOTE: These will be able to be reused for year 2.
140 12.22 1,710.80
4 LABOR
Installation of 1280 stands of lights on 32 trees along with all the transformers and extensions. Includes the use of booms for entire installation
1 19,200.00 19,200.00
SPRITZERS SUSPENDED IN TREES (LEASE) *Installed for holiday season only 5 PURCHASE: 24" Spritzers - Pure White
-(7) 24" Pure White or Warm White Spritzers per tree
-Leased for the Season
224 85.00 19,040.00
2 Sub Total 90,327.80
Total $90,327.80
# Item & Description Qty Rate Amount
GAZEBO (LEASE) *Installed for holiday season only
6 Garland wrapped around each post down to the rail .
Premium Garland with Warm White LED Lights
Colors to be Classic Red/ Silver
8 300.00 2,400.00
7 Milar 24" Silver Bow on each pilaster Post 8 95.00 760.00 8 Garland around the Lower Level the Gazebo
Premium Garland with Warm White LED Lights
Colors to be Classic Red/ Silver
8 300.00 2,400.00
9 Garland around the upper Level the Gazebo
Premium Garland with Warm White LED Lights
Colors to be Classic Red/ Silver
4 300.00 1,200.00
ENTRANCE OVERHEAD STREET SIGN (LEASE) *Installed for holiday season only 10 24" Spritzers across the the top of monument sign. Will be mounted across on mounted bar (15) Spritzers
Note: Boom Required
15 95.00 1,425.00
11 (4) Garland across the front and back of the upper Upland Sign. Will have the spritzers in above (priced separately)
Premium Garland with Warm White LED Lights
Colors to be Classic Red/ Silver
Note: Boom Required
4 350.00 1,400.00
12 (4) Garland across the front and back street sign from the post to the "S" Curve (please see rendering)
Premium Garland with Warm White LED Lights
Colors to be Classic Red/ Silver
Note: Boom Required
4 350.00 1,400.00
13 C9 Lights on both front and back side along the lower rail and across the top of the "Historic Downtown" Sign
Note: Boom Required
200 6.00 1,200.00
15 EXHIBIT C
Activity Schedule
1. Installation of Tree Lighting on Second Avenue and 9th Street (Permanent Lights)
Items 1 through 4 of Exhibit B:
• July 2023
• July 2025 or July 2026 (Depending on when permanent lights need to be replaced)
2. Installation and Removal of Holiday Season Only Decorations (Lease) – Spritzers suspended in trees, Gazebo, 9th Street Entrance Gateway
Items 5 through 13 of Exhibit B:
• Installation by November 15th and removal by the following January 10th of each year
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR
MIKE KITCHEN, FLEET CONSULTANT
SUBJECT: CONSIDER APPROVAL OF A PURCHASE ORDER INCREASE FOR RICHARDSON BODY SHOP
RECOMMENDED ACTION:
It is recommended that the City Council approve an increase to an existing Purchase Order with Richardson Body Shop for body and paint repairs of City vehicles in the amount of $23,000 for a total amount of $55,000.
GOAL STATEMENT
The proposed action supports the City’s goal to maintain its assets in a safe and efficient manner.
BACKGROUND
The Public Works Fleet Division is responsible for the acquisition, maintenance and repair of City fleet vehicles and equipment. When there is damage to a City vehicle and City staff is unable to complete the repair, the Fleet Division will send the damaged vehicle to a body shop for paint and body repair.
ISSUES AND ANALYSIS
Richardson Body Shop has been used by the Fleet Maintenance Division as one of its primary paint and body repair vendors for over the past ten years. Richardson Body Shop is a local small business located in the City of Upland and has been consistently providing quality repairs at competitive pricing.
In this fiscal year, the City has experienced an unanticipated increase in damage to City vehicles and well as inflationary cost increases. Staff is recommending a $23,000 increase in our Purchase Order with Richardson Body Shop of a total amount of $55,000.
ENVIRONMENTAL DETERMINATION
The repair of a vehicle for maintenance is not considered a project under the California Environmental Quality Act (CEQA) and is Exempt from CEQA.
FISCAL IMPACTS
The FY 22/23 operating budget has sufficient funds in account 752 -5414-5227 for the increase to the purchase order for Richardson Body Shop.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR
MIKE KITCHEN, FLEET CONSULTANT
SUBJECT: CONSIDER APPROVAL OF THE PURCHASE OF POLICE FORENSIC VEHICLE
RECOMMENDED ACTION:
It is recommended that the City Council approve the purchase of a new 2024 Chevrolet 2500 with eight-foot (8-ft) service bed from M.K. Smith Chevrolet in the amount of $76,141.93; and authorize the City Manager to execute all necessary documents for the purchase of the vehicle.
GOAL STATEMENT
The proposed action supports the ongoing long -term City-wide fleet replacement and modernization program.
BACKGROUND
The Public Works Fleet Maintenance Division is responsible for the acquisition, maintenance and repair of City fleet vehicles and equipment. As part of the City’s long-term fleet replacement and modernization program, the Fleet Maintenance Division works with all the City’s Departments on design, acquisition, and vehicle replacement.
Unit 189 (2003 Chevrolet Tahoe) was surplussed from the Upland Fire Department and transferred to the Upland Police Department in November 2012. The unit was put into service as a crime scene forensic unit. The Tahoe lacks proper storage compartments and the capacity to carry all the needed investigational and collection equipment. The Tahoe is also lacking storage compartments for securing evidence collected at the scene. This unit is reaching the end of its cost-effective lifecycle and is scheduled for replacement as part of the Public Works Fleet Maintenance Division long-term replacement program.
ISSUES AND ANALYSIS
With the approval of the FY 22/23 budget, the Public Works Fleet Maintenance Division sent out a bid request to fourteen (14) local Chevrolet and Ford dealerships on January 4, 2023. Bids closed on January 18, 2023, and the Fleet Maintenance Division received two (2) responsive bids from M.K. Smith Chevrolet and from Transwest Ford. M.K.
Smith Chevrolet was the low bidder (bid sheet attached).
ENVIRONMENTAL DETERMINATION
The purchase of a vehicle for maintenance is not considered a project under the California Environmental Qual ity Act (CEQA) and is Exempt from CEQA.
FISCAL IMPACTS
The FY 22/23 budget includes the funds for the purchase of the Police Forensic vehicle in account 7523201-5531. No additional appropriation is necessary.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR
MIKE KITCHEN, FLEET CONSULTANT
SUBJECT: CONSIDER APPROVAL OF THE PURCHASE OF TWO POLICE MOTORCYCLES
RECOMMENDED ACTION:
It is recommended that the City Council approve the purchase of two (2) new 2023 BMW R 1250 RT -P Police Motorcycles from BMW Motorcycles of Riverside in the amount of $75,915.50; and authorize the City Manager to execute all necessary documents for the purchase of the vehicles.
GOAL STATEMENT
The proposed action supports the City’s goal of the ongoing long-term City-wide fleet replacement and modernization program.
BACKGROUND
The Public Works Fleet Maintenance Division is responsible for the acquisition, maintenance and repair of City fleet vehicles and equipment. As part of the City’s long-term fleet replacement and modernization program, the Fleet Maintenance Division works with all the City’s Departments on designing, acquisition, and vehicle replacement.
The Traffic Division of the Upland Police Department currently has four (4) front line BMW Motorcycles and one Honda Motorcycle for training. With the addition of new staff to the Traffic Division, additional motorcycles are needed, and the Traffic Division is requesting to purchase two (2) additional new 2023 BMW R 1250 RT-P Police Motorcycles.
ISSUES AND ANALYSIS
With the approval of FY 22/23 mid-year operating budget, funding was approved for the purchase of the two (2) additional Police Motorcycles.
The City will be purchasing the motorcycles from BMW Motorcycle s of Riverside on a piggy-back bid with the City of Fontana. This procurement process meets the State of California’s cooperative purchasing code 6500 & 6502 and Upland municipal code section 2.48.080 allowing the City to dispense with the bidding procedures when the purchase is beneficial to the interests of the City and is from a supplier who has been awarded a contract resulting from a formal competitive bidding process by another governmental agency.
ENVIRONMENTAL DETERMINATION
The purchase of a vehicle for maintenance is not considered a project under the California Environmental Quality Act (CEQA) and is Exempt from CEQA.
FISCAL IMPACTS
The FY 22/23 operating budget includes funds for the purchase of two (2) Police Motorcycles in account 752 3211- 5531. No additional appropriation is necessary.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR
ALAN FRENCH, PRINCIPAL ENGINEER
SUBJECT: REJECT ALL BIDS FOR PROJECT 32337, DOWNTOWN PARKLETS, AND RE-
ADVERTISE THE PROJECT
RECOMMENDED ACTION:
It is recommended that the City Council reject all bids for Project 32337, Downtown Parklets Improvements, and authorize staff to re-advertise the project.
GOAL STATEMENT
The proposed action supports the City’s goal of creating additional public open space and public realm improvements in the Downtown as part of the Downtown revitalization strategy. The project encourages a pedestrian-oriented environment with the addition of public open space for patrons to enjoy the open air and outdoor environment in Downtown.
BACKGROUND
On November 22, 2021, the City Council approved the design and funding plan for the Downtown Upland Parklets Project (the “Project #82338”). On July 27, 2020, the City Council approved CDBG-CV-3 funding for the Downtown Parklets Project in the amount of $60,000 (Wood platform design). On November 22, 2021, the City Council approved ARPA funding of $120,000 to cover the cost of the amended mid -block crossing design as part of a reinvest ment in Downtown Upland. On December 12, 2022, the City Council approve the revised design and cost estimate for the Downtown Upland Parklets Project and amend the FY 22-23 Capital Improvement Program (“CIP”) in the amount of $471,633.
The scope of work included three, six (6) foot wide benches with a center bar and no backing to promote short term usage, one side-loaded trash receptacles to prevent individuals from foraging through the trash, additional landscaping within existing and expanded planters, expansion of the 30-inch high brick garden walls to enclose the space, concrete foundation with stamped art; and new permanent metal bollards to prevent vehicles from crossing through the center of this area.
ISSUES AND ANALYSIS
A Notice Inviting Bids (NIB) was advertised in the Inland Valley Daily Bulletin on March 3 and 10, 2023 in accordance with the California Public Contract Code (Section 20164) and was listed on the City’s website and distributed to various electronic plan rooms.
On March 20, 2023, the City issued Addendum No. 1 providing responses to questions received on the bid documents on the project which included clarifying the bollards, covers, and bike racks. On March 29, 2023, the city issued Addendum No. 2 extending the bid due date to April 6, 2023. Then on April 3, 2023, the City issued Addendum No. 3 revising the bid item 30 “Install 6” Steel Pipe Bollards with Decorative Cover”.
On April 7, 2023, the City received and opened three bids for the Project, under bid No. 2023 -04 as follows:
BIDDER BID AMOUNT
Gentry General Engineering Inc. $1,198,751.00
C.S. Legacy Construction Inc. $1,413,822.00
Jergensen Construction Inc. $765,506.13 (1)
Note: (1) = Bidder submitted a letter of withdrawal after bid opening due to a clerical error in their bid.
The City reviewed the bid information, including Jergensen Construction’s withdrawal letter and confirmed that Gentry General Engineering, Inc. was the lowest responsible and responsive bidder . The resulting bids that were received are much higher than what was originally budgeted. The scope of work was originally based on costs for bollards that are no longer available at the estimated cost nor are the covers for those bollards available.
Consistent with the City issued bid documents (Addendum No. 1, 2 and 3), and in consultation with the City Attorney’s Office, staff recommend rejecting all bids and re-advertising the project.
ENVIRONMENTAL DETERMINATION
Since no project will occur, as staff seeks to reject all bids, this will not be considered a project under the California Environmental Quality Act (CEQA) at this time.
FISCAL IMPACTS
There is no fiscal impact associated with the recommended action of rejecting all bids.
ALTERNATIVES
1. Award bid to Gentry General Engineering, Inc. and approve an additional appropriation of $775,000 for construction of the parklets.
2. Provide alternative directions to staff.
CEQA: Not a Project.
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR
BOB CRITCHFIELD, ENGINEERING MANAGER
SUBJECT: SENATE BILL 1 (SB1) ROAD MAINTENANCE AND REHABILITATION ACCOUNT
FUNDING AND PROJECT LIST
RECOMMENDED ACTION:
It is recommended that the City Council adopt a Resolution approving a list of projects for Fiscal Year 2023 -2024 funded by Senate Bill 1: Road Repair and Accountability Act of 2017.
GOAL STATEMENT
The proposed action supports the City’s goal to continue to maintain and improve the City’s public roadway facilities.
BACKGROUND
On April 18, 2017, the Governor signed Senate Bill 1 (SB1), also known as the Road Repair and Accountability Act of 2017; created the Road Maintenance and Rehabilitation Program to address deferred maintenance on the State’s multimodal transportation network; and created the Road Maintenance and Rehabilitation Account (RMRA) for the deposit of various funds for the program. To fund this program, SB1 increased several taxes and fees (fuel tax, value- based transportation fee, price-based excise tax and zero emissions vehicle fee) and provided for inflationary adjustments so that the purchasing power of the revenues does not diminish. A percentage of RMRA funding will be apportioned by formula to eligible cities and counties for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
ISSUES AND ANALYSIS
In order to receive an apportionment of RMRA funds in a fiscal year, the City must annually approve a list of projects (Exhibit ‘A’) to be constructed with RMRA funding and must submit the list to the California Transportation Commission. The list of projects must include a description and location of each proposed project, a proposed schedule, and the estimated useful life of the improvement.
The RMRA requires that local agencies maintain and report a local Maintenance of Effort (MOE) to ensure that new road funds do not supplant existing levels of City general revenue spending on streets and roads. The MOE requires the City to maintain a general fund spending at no less than the average of 2009-10, 2010-11, and 2011-12 fiscal years.
Audits are performed to ensure the MOE requir ements are met. Upland’s MOE requirement for FY 2023-24 is estimated to be $2,280,631.
ENVIRONMENTAL DETERMINATION
There is no environmental impact for approving the FY 2023 -24 RMRA project list. Road maintenance projects are typically exempt from CEQA as the resultant pavement rehabilitation work falls under CEQA Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15302 Class 2 (Replacement or Reconstruction).
FISCAL IMPACTS
There is no fiscal impact associated with adoption of a Resolution approving a project list for the RMRA. Upland’s estimated RMRA funds for FY 2023-24 is $1,917,663 (Exhibit ‘B’) and the revenue is included in the FY 2023-24 RMRA Fund budget.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
Project Title Project Description Project Location Proposed Start
Date
Proposed
Completion
Date
Estimated
Useful
Life
Estimated
Project
Cost
14th Street Rehabilitation
Project 70005
0.70 miles of asphalt pavement
rehabilitation, replacement of damaged
curbs, gutters, sidewalks, handicap
ramps, and re-striping.
14th Street, from Campus
Ave. to Grove Ave
7/1/2021 6/30/2026 20 Years $2,081,000
Mulberry Avenue Reconstruction
Project 70006
0.17 miles of asphalt pavement
rehabilitation, replacement of damaged
curbs, gutters, sidewalks, handicap
ramps, and re-striping. Project also
includes water infrastructure under
separate funding.
Mulberry Avenue, from
Foothill Blvd. to Pine Street
7/1/2021 12/31/2023 20 Years $1,121,000
Foothill Blvd. Rehabilitation Project
70015
0.61 miles of asphalt pavement
rehabilitation, replacement of damaged
curbs, gutters, sidewalks, handicap
ramps, and re-striping. Project will also
include water infrastructure replacement
under separate funding.
Foothill Blvd., from Benson
Avenue to Mountain Avenue
7/1/2022 6/30/2025 20 Years $3,965,000
Foothill Blvd. Rehabilitation Project
70016
0.55 miles of asphalt pavement
rehabilitation, replacement of damaged
curbs, gutters, sidewalks, handicap
ramps, and re-striping. Project will also
include water infrastructure replacement
under separate funding.
Foothill Blvd., from Mountain
Avenue to San Antonio
Avenue
7/1/2022 6/30/2024 20 Years $3,466,000
Foothill Blvd. Rehabilitation Project
70017
0.53 miles of asphalt pavement
rehabilitation, replacement and
installation of curbs, gutters, sidewalks,
handicap ramps, and re-striping.
Foothill Blvd., Benson Avenue
to Central Avenue
7/1/2023 6/30/2026 20 Years $4,491,000
EXHIBIT 'A'
City of Upland, California
SB 1 - Road Maintenance and Rehabilitation
FY 2023-2024 Project List
EXHIBIT 'B'
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UPLAND, CALIFORNIA ADOPTING A LIST OF PROJECTS
FOR FISCAL YEAR 2023-2024 FUNDED BY SB 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of Upland are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive and estimated $1,917,663 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City conducts a review process to ensure public input into our community’s transportation priorities/the project list; and
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost- effective projects that also meet the communities priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate its streets this year and similar projects into the future; and
WHEREAS, the State requires the City create an SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co- benefits statewide.
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. The above recitals are true and correct.
Resolution No.
Page
Section 2. The City of Upland is adopting the fiscal year 2023-24 list of projects planned to be funded in-part or solely with Road Maintenance and Rehabilitation Account revenues provided in Exhibit A.
Section 3. Compliance with California Environmental Quality Act. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.
Section 4. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Section 5. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.
Section 6. Effective Date. This Resolution shall become effective immediately.
PASSED, APPROVED and ADOPTED this 12th day of June, 2023.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 12th day of June, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR/CITY ENGINEER
JOHN ROBLES, UTILITIES MANAGER
SUBJECT: CONSIDER APPROVAL OF A LEASE AGREEMENT WITH HOLLIDAY TRUCKING
RECOMMENDED ACTION:
It is recommended that the City Council consider approval of a Lease Agreement with Holliday Trucking for rent and lease of the City Well 15 property effective June 28, 2023.
GOAL STATEMENT
The proposed action supports the City's goal to properly maintain, renew, or replace assets to ensure that the City's infrastructure is operating effectively and efficiently.
BACKGROUND
On April 30, 1988, the City of Upland (City) completed drilling of City Well 15 (Well 15). Well 15 is located on property owned by Holliday Trucking, Inc (Holliday) and is one of the City’s most important groundwater resources, consistently producing 1600 to 1900 gallons per minute of drinking water. Well 15 allows the City to produce Cucamonga Basin water through the City’s shares of the San Antonio Water Company (SAWCo) and shares of the West End Consolidated Water Company (WECWC).
On January 27, 2003, the City and Holliday entered into a 10-year lease agreement with a City option for an additional 10-years extension. Rent paid to Holliday would be in the sum of $3,000 per month which would be adjusted annually based on the Consumer Price Index (CPI) for all urban consumers as published by the Department of Labor Statistics for Los Angeles-Long Beach.
On January 27, 2023, the City and Holliday entered into an amendment to the 2003 Lease Agreement, extending the contract for an additional six (6) months so that a new lease agreement could be prepared.
ISSUES AND ANALYSIS
A new Lease Agreement has been negotiated for a duration of five (5) years beginning June 28, 2023, with an optional 5-year extension. Rent for the site would be in the sum of Five Thousand One Hundred Sixty-Three Dollars and Sixteen Cents ($5,163.16) per month which would be adjusted annually on July 1 based on the Consumer Price Index for all urban consumers as published by the Department of Labor Statistics for Los Angeles-Long Beach-Anaheim.
ENVIRONMENTAL DETERMINATION
Lease Agreements are exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3), which states that CEQA does not apply where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Since this is a continuation of operation of an existing water well, the activity does not have a significant effect on the environment.
FISCAL IMPACTS
The FY 23/24 operating budget has sufficient budget in fund 640 to accommodate the indicated monthly rent. Future operating budgets will include budget for the cost of the monthly rents including the CPI adjustment.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
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RECORDING REQUESTED BY
City of Upland
AND WHEN RECORDED MAIL TO:
City Clerk
City of Upland
460 N. Euclid Avenue
Upland, CA 91786
_____________________________________________________________________________ LEASE OF WELL 15 AND APPURTENANT
ACCESS AND UTILITIES RIGHTS-OF-WAY
BY AND BETWEEN THE
CITY OF UPLAND AND HOLLIDAY ROCK COMPANY
This lease (this "Lease") is made as of the ____ day of ____, 2023, by and between HOLLIDAY TRUCKING INC., a California corporation ("Landlord"), and the CITY OF UPLAND, a California municipal corporation ("Tenant").
RECITALS
A. The parties previously entered into that certain Lease of Well 15 and Appurtenant Access and Utilities Rights of Way dated January 27, 2002 (the “Prior Lease”); B. The parties desire that, upon entering into this Lease and the commencement of the term as provided herein, the Prior Lease will be deemed terminated and of no further force and effect;
NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant agree as follows:
1. RECITALS. The recitals are hereby incorporated herein by reference as if fully set forth herein.
2. PREMISES. Landlord is the owner of that certain real property ("Property") legally described in Exhibit "A" attached hereto and incorporated by reference herein, and depicted on Exhibit "B" attached hereto and incorporated by reference herein. For and in consideration of the rents, covenants, and conditions set forth herein, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that certain real property ("Premises") legally described in Exhibit "C" attached hereto and incorporated by reference herein, and depicted on Exhibit "D" attached hereto and incorporated by reference herein, along with a nonexclusive right
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of ingress and egress across the Property for access and utilities. The parties agree that the access way and utility routing may change from time to time. Except as specifically stated in this Lease, Landlord makes no warranties or representations regarding the condition of the Premises. Tenant shall take possession of the Premises on the date the term commences in t heir then "as is" condition.
3. TERM. The lease term (the "Original Term") shall be for a period of five (5) years, commencing on June 28, 2023 (the "Commencement Date"). Tenant shall have the privilege and option of extending the Original Term of this Lease (the "Option") for one (1) additional successive term of five (5) years (the "Extension Term"), to commence upon expiration of the Original Term. Tenant shall exercise such option by delivering written notice thereof to Landlord no later than ninety (90) days prior to the expiration of the Original Term, sent in the manner and to the address of Landlord set forth in Section 17 hereof. The terms and conditions of this Lease shall be the same during the Extension Term as during the Original Term, as provided herein. The "Term" as used herein shall be deemed to include the Original Term and the Extension Term.
4. RENT. Tenant shall pay to Landlord as monthly rent, without deduction, setoff, prior notice, or demand, the sum of Five Thousand One Hundred Sixty-Three Dollars and Sixteen Cents ($5,163.16). Tenant shall pay such rent pay to Landlord in advance on or before the first (1st) day of each and every month during the term of this Lease. If the Commencement Date is on other than the first of the month, rent shall be prorated accordingly based on a 30-day month.
It is the purpose and intent of Landlord and Tenant that the rent payments payable under this Section 4 shall be triple net to Landlord and Tenant shall pay all costs, charges and expenses of every kind and nature whatsoever against the Premises that may arise or become due during any Term and that, except for the execution and delivery of this Lease, would or could have been payable by Landlord.
5. INCREASE IN RENT. The rent provided in Section 4 above shall be adjusted annually throughout the term of this Lease effective as of July 1 of each year, commencing July 1, 2024. Such rent shall be increased each year by a percentage equal to the percentage change in the Consumer Price Index for All Urban Consumers (All Items, Base 1982-84 = 100) statistics published by the United States Department of Labor, Bureau of Labor Statistics for Los Angeles- Long Beach-Anaheim (CPI-U) or the nearest comparable data on changes in the cost of living, if such index is no longer published. The change shall be determined by comparison of the figure for the previous July 1, with that of July 1 of the current year. In no event shall the rent resulting from an annual adjustment decrease the amount of rent paid by Tenant to Landlord. Landlord shall promptly notify Tenant of each rent adjustment.
6. USE. Except as set forth here in this Section 6, Tenant agrees to use the water well related improvements on the Premises as the same are presently used for municipal water production purposes and for no other use, except as may be expressly authorized by Landlord in writing. Tenant shall use no chemicals, petroleum products or other substance upon the Premises except those that are used in the routine care and maintenance of the subject water well facilities.
7. ALTERATIONS AND IMPROVEMENTS. Tenant shall not construct any structures or improvements on the Premises without the prior written consent of the Landlord.
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Any alterations or improvements constructed by Tenant shall become the property of the Landlord at the time of such construction or placement and shall remain the property of the Landlord after termination or expiration of this Lease.
8. USES PROHIBITED. Tenant shall not use or allow the Premises to be used for any improper or unlawful purpose nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises.
9. LIENS. Tenant shall keep the Premises and the Property free from any liens or stop notices arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant.
10. ASSIGNMENT AND SUBLETTING. Tenant shall not, either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest herein, or any right or privilege appurtenant hereto, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Prem ises, or any portion thereof, without first obtaining the written consent of Landlord, which consent may be withheld, delayed or conditioned in Landlord's sole and absolute discretion. A consent to one assignment, subletting, occupation or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease, unless Landlord executes a written release of Tenant. Any such assignment or subletting without such consent shall be void, and shall, at the option of the Landlord, constitute a default under this Lease.
11. RIGHT OF ACCESS. The Landlord and Landlord's officers, employees, and agents shall at all reasonable times have the right to enter the Premises for the purpose of inspecting the same, posting notices of non -responsibility or any other notices required by law for the protection of the Landlord, doing any work that Landlord is permitted or required to perform and making any reasonable repairs that the Landlord determines may be required.
In conducting its activities on the Premises as allowed in this section, Landlord shall attempt to minimize the inconvenience, annoyance, or disturbance to Tenant and its authorized sublessees. Landlord shall be liable for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Landlord's entry on the Premises as provided in this section that results from the negligent or intentional wrongful acts or omissions of Landlord or its authorized representatives.
12. SIGNS. No signs are permitted on the Premises except as may be authorized by Landlord in writing.
13. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the reasonable and non-discriminatory rules and regulations that Landlord shall from time to time promulgate and/or modify for the use of the Premises, to the extent not inconsistent wi th the terms and conditions of this Lease.
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14. DEFAULT BY TENANT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: (a) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such _failure shall continue for a period of ten (10) clays after written notice thereof by Landlord to Tenant"; or (b) The failure by Tenant to observe or perform any of the other covenants, conditions or provisions of this Lease to be observed or performed by the Tenant, where such failure shall continue for a period of thirty (30) days after written notice thereof by Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than 30 days are reasonably required for its cure, then Tenant shall not be deemed be in default if Tenant commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. In the event of an y such default or breach by Tenant, Landlord may pursue any remedy now or hereafter available to Landlord under the laws or judicial decisions of the State of California.
15. DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within thirty (30) days after written notice by Tenant to Landlord specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than 30 days are required for performance, then Landlord shall not be in default if Landlord commences performance within such 30 day period and thereafter diligently prosecutes the same to completion. Tenant may pursue any remedy now or hereafter available to it under the laws or judicial decisions of the State of California.
16. EMINENT DOMAIN. If all or any portion of the Premises shall be taken or appropriated by any authority under the power of eminent domain, either party hereto shall have the right, at its option, within sixty (60) days after said taking, to terminate this Lease upon thirty (30) days' written notice. If neither party elects to terminate as herein provided, the rent thereafter to be paid shall be equitably reduced. If any part of the Property ot her than the Premises is so taken or appropriated, Landlord shall within sixty (60) days of said taking have the right at its option to terminate this Lease upon written notice to Tenant.
17. PAYMENTS AND NOTICE. All rental payments and notices hereunder shall be paid by Tenant to the Landlord at 1401 N. Benson Avenue, Upland CA 91786, California or at such other address or to such other persons as the Landlord may from time to time designate in writing. All notices given by Landlord to Tenant hereunder shall be in writing and delivered to Tenant at 460 N. Euclid Ave., Upland, CA 91786, Attn: City Manager. All notices shall be deemed given as of the time of hand delivery to the addresses set forth herein, on the next business day after delivery by a nationally recognized overnight delivery service, or three (3) business days after deposit into the United States mail, postage prepaid, by registered or certified mail, return receipt requested.
18. SUCCESSORS. Each and every one of the terms, covenants, and conditions of this Lease shall inure to the benefit of and shall bind, as the case may be, not only the parties hereto but each and every one of the heirs, executors, administrators, successors, assigns, and legal representatives of the parties hereto; provided, however, that any subletting or assignment by Tenant of the whole or any part of the Premises or any interest therein shall be subject to the provisions of Section 10 of this Lease.
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19. SURRENDER. At the expiration or termination of the Term of this Lease, Tenant shall surrender the Premises to the Landlord in the same condition as received, reasonable wear and tear excepted.
20. SUBORDINATION. At the option of the Landlord, this Lease shall be either subordinate or superior to any ground or underlying lease, deed of trust, mortgage or other encumbrance now or hereafter placed on the Property; provided that, the subordination to future mortgages, deeds of trust or leases shall be conditioned upon Tenant’s receipt of a commercially reasonable subordination, non-disturbance and attornment agreement (“SNDA”) from any such mortgagee, beneficiary or landlord under a lease wherein Landlord is tenant. As of the Commencement Date, Landlord does not have a loan encumbering the Property. Tenant shall upon request by Landlord execute any commercially reasonable written SNDA or other documents necessary or convenient to implement this section. In addition, Tenant shall deliver to the Landlord, at its request: (i) a financial statement of Tenant duly certified by Tenant; (ii) an estoppel certificate in a form reasonably satisfactory to the Landlord duly executed by Tenant stating that this Lease is in full force and effect, that the Tenant claims no default by the Landlord hereunder, or if Tenant claims a default by Landlord, specifying the nature thereof, and the amount of monthly rent owed by Tenant hereunder; and (iii) Tenant's agreement to attorn to any lender, which agreement of attornment shall be in a commercially reasonable form.
21. BROKERS. Each party represents that it has not had dealings with any real estate broker, finder, or other person performing the functions of a broker or finder, with respect to this Lease in any manner. Each party ("Indemnifying Party") shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person with whom the Indemnifying Party has or purportedly has dealt.
22. GENERAL PROVISIONS.
A. Plats and Riders. Clauses, exhibits, plats, riders and addenda, if any, affixed to this Lease are a part hereof.
B. Waiver. The waiver by either party of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding default at the time of the acceptance of such rent.
C. Joint Obligation. If there be more than one Tenant, the obligations hereunder imposed shall be joint and several.
D. Marginal Headings. The marginal headings and article titles to the articles of this Lease are not a part of the Lease and shall have no effect upon the construction or interpretation of any part hereof.
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E. Authority of Landlord. Landlord warrants and represents that it is the record owner of the Premises and has the full right, power and authority to enter into this Lease and consummate the transactions contemplated hereby. Each party warrants and represents that, as to that party, the execution, delivery and performance of this Lease have been duly and validly authorized by that party, and no other action by that party is requisite lo the valid and binding execution, delivery, and performance of this Lease by that party.
F. Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.
G. Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to the lease of the Premises, and no prior agreements or understandings pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto.
H. Partial Invalidity. Any provision of this Lease that shall be held by a court of competent jurisdiction to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision hereof, acid such other provision shall remain in full force and effect.
I. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity.
J. Attorney's Fees. In the event any legal or equitable action or proceeding is instituted between the parties hereto seeking enforcement or interpretation of any of the terms or provisions of this Lease, the prevailing party in such action or proceeding shall be entitled to have and to recover from the other party all of the prevailing party's costs of suit, including but not limited to actual attorneys' fees awarded by the court.
K. Choice of Law. This Lease shall be governed by the laws of the State of California.
L. Relationship of the Parties. Nothing in this Lease shall be deemed or construed by the parties hereto or by any third person to create the relationship of principal and agent, partnership, joint venture, or any other association between Landlord and Tenant other than the relationship described herein.
M. Insurance. Tenant shall fully insure all personal property of Tenant stored or used on the Premises. Tenant agrees to maintain in full force and effect at all times during the term of this Agreement, at Tenant's own expense, for the protection of the Indemnitees, policies of insurance issued by a carrier rated as A-VII in the latest edition of Best's Key Rating Guide as such Guide may be amended from time to time which afford at least the following coverages:
(i) Workers' Compensation Statutory (including broad form all states)
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(ii) Comprehensive General Liability
Insurance, including Blanket
Contractual Liability, Broad Form
Property Damage, Personal Injury
(iii) "All-Risk" Insurance including,
without implied limitation, Extended
Coverage, Vandalism and Malicious
Mischief in an amount sufficient to
cover the full cost of replacement of
all improvements and betterments to
the Premises made by or on behalf of
Tenant.
Not less than $2,000,000 Combined
Single. Limit for both bodily injury
property damage .-
Not less than $1,000,000 Limit
Tenant may self-insure with respect to the foregoing, provided however, that Tenant's self- insured retentions shall first be declared to and approved by Landlord. Unless self-insured, Tenant shall deliver to Landlord at least thirty (30) days prior to any proposed use of the Premises, and thereafter at least thirty (30) days prior to expiration of such policy, (i) Certificates o f Insurance ("Certificates") evidencing the above coverage with limits not less than those specified above, and (ii) original endorsements to the policies reference above evidencing the Indemnitees as additional named insureds, as provided below. Such Certificates, with the exception of Workers' Compensation, shall name Landlord as named, additional insureds and shall expressly provide that the interest of same therein shall not be affected by any breach by Tenant of any policy provision for which such Certificates evidence coverage. Further, all Certificates shall expressly provide that no less than thirty (30) days prior written notice shall be given to Landlord in the event of material alteration to or cancellation of the coverages evidenced by such Certi ficates.
Upon demand, Tenant shall provide Landlord, at Tenant's expense, with such increased amounts of existing insurance, and such other insurance in such limits, as conditions may reasonably require and such other hazard insurance as the nature and condition of the Premises may reasonably require, to afford Landlord and additional insureds designated by Landlord adequate protection for said risks. Upon failure of Tenant to comply with the provisions of this Section, then any loss or damage Landlord shall sustain by reason thereof shall be borne by Tenant and shall be immediately paid by Tenant to Landlord upon receipt of a bill therefor and evidence of such loss. Landlord makes no representation that the limits of liability specified to be carried by Tenant under the terms of this Agreement are adequate to protect Tenant against Tenant's undertaking under this Section, and in the event Tenant believes that any such insurance coverage called for under this Agreement is insufficient, Tenant shall provide at its own expense such additional insurance as Tenant deems adequate. Each party agrees to furnish appropriate subrogation waiver endorsements. Notwithstanding the foregoing, Tenant may self -insure, in whole or part, for any of the coverages set forth in the foregoing.
N. Release. Tenant hereby fully and unconditionally releases Landlord, its agents, officials, employees, contractors, and attorneys, from all costs, losses, claims, damages or other liabilities arising from injury or damage to the person or goods, wares, merchandise or other property of Tenant, Tenant's employees, contractors, invitees, customers, or any other person in or about the Premises whether such damage or injury is caused by or result from theft, vandalism,
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fire, chemicals, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defect of pipes, wires, appliances, plumbing, or lighting fixtures, or from any other cause (unless and to the extent caused by the gross negligence or willful misconduct of Landlord), whether said injury or damage results from conditions arising upon the Premises or from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the same is 'accessible or not. Except to the extent caused by the gross negligence or willful misconduct of Landlord, Landlord shall not be liable for any damages arising from any act or neglect of any third party nor from the failure of Landlord to enforce the provisions of this Lease.
0. Taxes. Tenant shall timely pay to the appropriate governmental authority, before delinquency, all real property taxes, possessory interest taxes, and other assessments, if any, imposed upon the Premises by any authority having the power to tax the Premises or the use thereof or any interest therein. In accordance with the requirements of California Revenue and Taxation Code Section 107.6, Tenant acknowledges that this Lease may be subject to possessory interest taxes, and Tenant, as the party in whom the possessory interest is vested will be required to pay any taxes levied against its possessory interest. [Signatures on Following Page]
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IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written
“LANDLORD” ‘TENANT’
HOLLIDAY TRUCKING INC., CITY OF UPLAND,
a California corporation a California municipal corporation
By: ___________________ By: ___________________
Name: ________________ Name: ________________
Its: ___________________ Its: ___________________
ATTEST:
_______________________
City Clerk
APPROVED AS TO FORM:
__________________________
City Attorney
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A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document, to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California )
)
County of )
On __________, 20__, before me, ___________________________, Notary Public, personally appeared, _______________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Seal)
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A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document, to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California )
)
County of )
On __________, 20__, before me, ___________________________, Notary Public, personally appeared, _______________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Seal)
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CERTIFICATE OF ACCEPTANCE
OF LEASEHOLD INTEREST
This is to certify that interests in real property conveyed by the Lease, dated _______________, 2023, to which this Certificate of Acceptance is attached, from HOLLIDAY TRUCKING INC., a California corporation ("Landlord") to the City of Upland, a California municipal corporation ("Tenant"), is hereby accepted by the undersigned officer on behalf of Tenant pursuant to the authority conferred by Tenant's City Council, and Tenant hereby consents to recordation such Lease by its duly authorized agent.
Dated: ______________, 2023
CITY OF UPLAND,
a California municipal corporation
By: ______________________
City Clerk
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR/CITY ENGINEER
JOHN ROBLES, UTILITIES MANAGER
SUBJECT: CONSIDER APPROVAL OF FIRST AMENDMENT TO AGREEMENT WITH GENERAL
PUMP COMPANY
RECOMMENDED ACTION:
It is recommended that the City Council approve the first amendment to General Pump Company Inc.’s Maintenance Service Agreement for the rehabilitation of City Well 1A for an additional amount of $36,723 and a new total contract amount of $186,723; authorize the City Manager to execute the amendment; and approve a budget adjustment of $36,723 to cover the additional contract amount.
GOAL STATEMENT
The proposed action supports the City's goal to properly maintain, renew, or replace assets to ensure that the City's infrastructure is effectively and efficiently operating.
BACKGROUND
City Well 1A produces drinking water from the City’s Six Basin production rights and can produce up to 850 gallons per minute (gpm) to the City’s northernmost reservoir (Reservoir 2). When the San Antonio Canyon Water Treatment Plant is not running, it is the sole source of chlorination to Reservoir 2. If this well and the treatment plant are not running, treatment staff must manually inject chlorine into Reservoir 2. Recently the well has failed and will not start.
On October 24, 2022, the City Council awarded a Maintenance Service Agreement to General Pump Company for the rehabilitation of City Well 1A in the amount of $125,105 with a contingency amount of $24,895 for a total amount of $150,000.
ISSUES AND ANALYSIS
After a video inspection of the well, it was discovered that required repairs are much more extensive than originally anticipated. The existing mild steel well casing is heavily corroded resulting in loss of structural integrity, holes, and enlarged perforations. There is extreme risk in performing any additional rehab work or pumping this well in its current condition. In order to complete all the necessary repair s and replace all the well material, the Contractor estimates that an additional $36,723 is required to complete the rehabilitation.
Staff recommends amending the General Pump’s Maintenance Service Agreement for the rehabilitation of City Well 1A to increase the contract amount an additional $36,723.
ENVIRONMENTAL DETERMINATION
The project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (“CEQA”), and the State CEQA Guidelines, and determined to be categorically exempt from further environmental review pursuant to Section 15301(c) (Existing Facilities), of the CEQA guidelines. The project involves repair and maintenance of existing public facilities and does not involve any expansio n of use beyond that which is existing.
FISCAL IMPACTS
With the additional efforts on this project, it is now considered a capital project. As an alternative to funding the project with fund balance, Staff is requesting a budget adjustment with the reduction of $36,723 from CIP Project 640-9148 (New Chino Basin Well), and its budget being transferred to the City Well 1A Rehabilitation project 640- 7500-XXXX-91030.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Determined to be Exempt
- 1 -
FIRST AMENDMENT TO
MAINTENANCE SERVICES AGREEMENT
WITH GENERAL PUMP COMPANY, INC.
This First Amendment to the Maintenance Services Agreement for is made and entered into as of June 12, 2023 (“Effective Date”) by and between the City of Upland, a municipal corporation (“City”) and General Pump Company, Inc, a California corporation (“Consultant”). City and Consultant are sometimes referred to herein individually as a “Party” and collectively as “Parties.”
RECITALS
A. WHEREAS, the City and the Consultant have entered into an agreement, dated October 24, 2022, for the purpose of providing services for the rehabilitation of City Well 1A (the “Original Agreement”).
B. WHEREAS, the Parties now desire to amend the Original Agreement in order to add additional services to the Original Agreement and to include additional funds for the performance of the services in accordance with the compensation provisions of the Original Agreement.
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this First Amendment and the Original Agreement, the Parties mutually agree as follows:
AGREEMENT
1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.
2. Additional Services. The Services, as that term is defined in the Original Agreement, shall be amended to include additional services. The additional services are more particularly described in Exhibit “A-1”, attached hereto and incorporated herein by this reference.
3. Compensation. The compensation for services performed pursuant to this First Amendment shall not exceed Thirty-Six Thousand Seven Hundred Twenty-Three Dollars ($36,723.00), thereby increasing the total not-to-exceed compensation of the Original Agreement to the amount of One Hundred Eighty-Six Thousand Seven Hundred Twenty-Three Dollars ($186,723.00). The additional services shall be performed at the rates set forth in Exhibit “A-1” of this First Amendment.
4. Full Force. Except as amended by this First Amendment, all provisions of the Original Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this First Amendment.
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5. Electronic Transmission. A manually signed copy of this First Amendment which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this First Amendment for all purposes. This First Amendment may be signed using an electronic signature.
6. Counterparts. This First Amendment may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR
FIRST AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT
WITH GENERAL PUMP COMPANY, INC.
IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment on the Effective Date first herein above written.
CITY OF UPLAND
a California municipal corporation
CONTRACTOR
General Pump Company, Inc.
159 N Acacia St.
San Dimas, CA 91773
_____________________________
Michael Blay, City Manager
By:____________________________
Name:_________________________
Title:___________________________
Attest:
______________________________
Keri Johnson, City Clerk
By:____________________________
Name:_________________________
Title:___________________________
Approved As to Legal Form:
_______________________________
Stephen Deitsch, City Attorney
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EXHIBIT A-1
ADDITIONAL SERVICES/SCHEDULE OF CHARGES
[ATTACHED]
159 N. ACACIA STREET * SAN DIMAS, CA 91773
PHONE: (909) 599-9606 * FAX: (909) 599-6238
CAMARILLO, CA 93010 * PHONE: (805) 482-1215
www.genpump.com
WELL & PUMP SERVICE SINCE 1952 Lic. #496765
Serving Southern California and Central Coast
April 26, 2023 Via Email
City of Upland
1370 North Benson Ave
Upland, CA 91786
Attn: John Robles
Subject: City of Upland: Well 1A Rehab Project – Liner Proposal
General Pump Company is pleased to provide our proposal to furnish and install a 240’ full- length liner at the above referenced well site. Based on the most recent video, it appears the existing mild steel well casing is heavily corroded resulting in loss of structural integrity, holes, and enlarged perforations. There is extreme risk in performing any additional rehab work or pumping this well in its current condition. A stainless-steel liner will increase the life expectancy of your well by about 50 years. It will also allow for even the most aggressive well rehab techniques to be performed in the future. The following is a summary of the cope of work and associated costs.
Scope of Work
• Bail well to total depth or refusal point (Included in original proposal) • Run a 10” x 20’ dummy tool into the well to verify liner materials will fit into existing well casing
• Receive, inspect, and prep liner materials for installation • Furnish and install full length liner
• Install gravel pack
• Single line swab well to consolidate gravel pack
• Perform final video survey (Included in original proposal)
All liner materials have a 4-week lead time. GPC will require 3 working days to inspect and prep all liner materials once they arrive in our shop. Well logging, testing, and liner/gravel installation will take 5-7 working days to complete. Total scope of work will require 6 weeks from receipt of approval for completion.
Engineering Note: Because the well casing size is being reduced from 13.75” to 10”, the proposed bowl assembly in the original bid will have to be downsized to fit the new application.
It is likely there will be a minor loss in production due to the new liner.
City of Upland
Well 1A
April 26, 2023
Cost Proposal
Shop Labor
• Receive and inspect new materials, quality assurance
• Fabricate 20’ x 10” OD dummy tool, handling
• Modify single line swab tool for 10” well
• Prep and load liner material for installation
• Prep rigs and equipment for liner installation
Est 38 Hrs. @ $118/Hr. $ 4,484.00
Materials
• 10” 304L SS end cap
• 10” 304L SS wire wrap screen - .060 slot
• 10” Heavy wall blank casing
• 10” Blank well casing w/ weld collars
• Welding wire
• Land off material and gussets
• Sounding tube extension material
• ¼” Silica gravel pack
• Dummy tool and rubber swab materials
• Estimated shipping and handling
• Sales tax @ 7.75%
Lump Sum $ 47,551.00
Field Labor
Dummy Tool
• Mobilize to site and set up rig.
• Lower tool into well to full depth or refusal.
• Verify liner material can be properly installed.
• Remove tool and demobilize.
2-Man Crew & Combo Rig – Est. 8 Hrs. @ $489/Hr. $ 3,912.00
Liner Installation
• Mobilize to site and set up rig.
• Install full length well liner.
• Land off liner and secure with gussets.
• Extend sounding tubes, as needed
• Prep site for gravel installation.
3-Man Crew & Combo Rig – Est. 16 Hrs. @ $650/Hr. $ 10,400.00 Fabricator & Welding Truck – Est. 16 Hrs. @ $199/Hr. 3,184.00
City of Upland
Well 1A
April 26, 2023
Field Labor – (Continued)
Gravel Pack Installation
• Mobilize to site and set up crane.
• Gradually pour gravel into well and chase with water to help reduce bridging.
• Tag gravel level every 50’ to ensure proper installation. • Prep site for single line swab and demobilize
3-Man Crew & Rotary Crane – Est. 10 Hrs. @ $700/Hr. $ 7,000.00
Single Line Swab
• Mobilize to site and set up rig.
• Lower line swab tool into well.
• Single line swab perforated interval to consolidate
and exercise new gravel pack
• Remove tool and prep site for video
• Secure site and demobilize.
2-Man Crew & Combo Rig – Est. 8 Hrs. @ $489/Hr. $ 3,912.00
Subtotal $ 80,443.00
Available Contingency Funds -$ 24,895.00
Credit for Unused Bid Items -$ 18,825.00
Estimated Additional Cost $ 36,723.00
Should you have any questions or need additional information regarding the above summary and associated cost, please do not hesitate to contact us. Thank you for the opportunity to provide a quote for our services.
GENERAL PUMP COMPANY, Inc.
Michael Garcia
Michael Garcia
Project Manager/Project Engineer
DATE: June 12, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR
RICHARD SMIDERLE, OPERATIONS MANAGER
SUBJECT: CONSIDER APPROVAL OF AGREEMENT WITH WEST COAST ARBORIST
RECOMMENDED ACTION:
It is recommended that the City Council award a service agreement for Annual Tree Maintenance to West Coast Arborists, Inc. (WCA) effective 7/1/2023 through 6/30/2026 with an option for 5 additional one -year terms and an amount not to exceed what is budgeted each year for Tree Maintenance Services.
GOAL STATEMENT
The proposed action supports the City’s objective to maintain a healthy urban forest of approximately 31,000 trees which beautify the City of Upland and make it a better place to work, live & play.
BACKGROUND
The City’s Public Works Department is responsible for maintenance of over 32,000 trees within the public right -of- way and on City owned public property including parkways, medians, parks, City facilities, Community Facilities Districts (CFDs), Landscape Maintenance Districts (LMDs), and open spaces, which covers over 200 acres of landscaped areas.
The City utilizes a contractor to provide citywide tree maintenance services and since 1999 (24 years), WCA has provided exceptional tree maintenance service to the City of Upland for tree pruning, tree re movals, tree planting, emergency after-hours response, and arborist services. Numerous San Bernardino County and neighboring cities including Ontario, Claremont, Montclair, Fontana, Rialto, Colton, etc. also utilize WCA Tree Services. The City’s existing Citywide Tree Maintenance Agreement with WCA expires on June 1, 2023.
ISSUES AND ANALYSIS
Staff investigated various options for a new citywide tree maintenance service contract that would be the most cost effective and expeditious including issuing a request for proposals (RFP) but found that the most reasonable and economical option was to enter into a new Agreement for Citywide Tree Maintenance Services with WCA at the 2019 pricing (For the initial 3-Years) provided to the City of Rancho Cucamonga under a “Piggyback Procurement.” This procurement process meets the State of California’s cooperative purchasing code 6500 & 6502 and Upland municipal code section 2.48.080 allowing the City to dispense with the bidding procedures when the purchase is beneficial to the interests of the City and is from a supplier who has been awarded a contract resu lting from a formal competitive bidding process by another governmental agency.
The City has received a Letter Proposal for an Annual Tree Maintenance Services Contract from WCA and their offer to “Piggyback” onto an existing publicly bid contract (Atta chment 3) with the City of Rancho Cucamonga. The City of Rancho Cucamonga competitive public bidding (Attachment 4) and awarded WCA a Citywide Tree Maintenance Contract on July 24, 2019. Staff has reviewed the bid documents issued by the City of Rancho C ucamonga and has determined that the proper competitive bidding procedures were followed.
The contractor is qualified to perform the tree maintenance services as required by the City, including trimming, pruning, planting, and removal of trees. The services performed by WCA for the City of Upland to date have been outstanding. It is in the City’s best financial interest to enter into a contract with the contractor for the 2019 prices, terms, and conditions as offered to the City of Rancho Cucamonga (Attachment 4). The City’s current contract with WCA was awarded for a six (6) year term. Staff is proposing to enter into an initial three (3) year term, with an option to extend the contract for five (5) additional one-year terms for a maximum contract length of eight (8) years.
ENVIRONMENTAL DETERMINATION
Since this project is maintenance of an existing facilities, the environmental determination for this project is Categorically Exempt from the California Environmental Quality Act (CEQA).
FISCAL IMPACTS
The proposed Agreement (Attachment 1) is not-to-exceed the amount included in the City’s annually adopted operating budget for Tree Maintenance Services which for FY 23/24 is $850,860 in the General Fund and $150,000 in the Gas Tax Fund.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
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CITY OF UPLAND
TREE CARE MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 12th day of June, 2023 by and between the City of Upland, a general law city and municipal corporation organized under the laws of the State of California with its principal place of business at 460 N. Euclid Avenue, Upland, CA 91786 (“City”) and West Coast Arborist, Inc., a California Corporation with its principal place of business at 2200 E. Via Burton Street, Anaheim, CA, 92806 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement.
Contractor represents that it is experienced in providing tree care & maintenance services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City.
Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
2.2 Project.
City desires to engage Contractor to render such services for Tree Care Maintenance Services (“Project”) as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional tree care maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state, and federal laws, rules, and regulations.
3.1.2 Term. The term of this Agreement shall be from July 1, 2023 to June 30, 2026 unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than five (5) additional one- year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.
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3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.
3.2.1.1 PERS Eligibility Indemnification. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.
3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions.
In order to facilitate Contractor’s conformance with the Schedule, City shall respond to Contractor’s submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.
3.2.4 City’s Representative. The City hereby designates the Operations Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.
3.2.5 Contractor’s Representative. Contractor hereby designates the Branch Manager, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor ’s
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Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants, and other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees, and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged, and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of Two Hundred Fifty Dollars ($250) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extra work which Contractor may be required to do or respecting the size of any payment to Contractor during the performance of this Contract, Contractor shall continue to perform the Work while said dispute is decided by the City. If Contractor disputes the City’s decision, Contractor shall have such remedies as may be provided by law.
3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations and without giving written
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notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with. These include but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours’ labor shall constitute a legal day’s work and that no worker shall be permitted to work in excess of eight (8) hours during any one calendar day except as permitted by law. Contractor shall defend, indemnify, and hold City, its officials, directors, officers, employees, and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules, or regulations.
3.2.10.1 Employment Eligibility; Contractor. By executing this Agreement, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. Such requirements and restrictions include, but are not limited to, examination and retention of documentation confirming the identity and immigration status of each employee of the Contractor.
Contractor also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement. Contractor shall avoid any violation of any such law during the term of this Agreement by participating in an electronic verification of work authorization program operated by the United States Department of Homeland Security, by participating in an equivalent federal work authorization program operated by the United States Department of Homeland Security to verify information of newly hired employees, or by some other legally acceptable method. Contractor shall maintain records of each such verification and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements provided for in Section 3.2.10 or any of its sub- sections.
3.2.10.2 Employment Eligibility; Subcontractors, Sub-subcontractors, and Consultants. To the same extent and under the same conditions as Contractor, Contractor shall require all of its subcontractors, sub-subcontractors and consultants performing any work relating to the Project or this Agreement to make the same verifications and comply with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility: Failure to Comply. Each person executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer of Contractor, and understands that any of the following shall be grounds for the City to terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub-subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such requirements (including in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in compliance with such requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services.
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3.2.10.5 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.
3.2.10.6 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency and the State Water Resources Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.
(B) Liability for Non-Compliance. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and against any and all fines, penalties, claims or other regulatory requirements imposed as a result of Contractor’s non-compliance with the laws, regulations and policies described in this Section, unless such non-compliance is the result of the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (C) Training. In addition to any other standard of care requirements set forth in this Agreement, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in this Section. Contractor further warrants that it, its employees, and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in this Section as they may relate to the Services provided under this Agreement. Upon request, City will provide Contractor with a list of training programs that meet the requirements of this paragraph.
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3.2.11 Insurance.
3.2.11.1 Time for Compliance. Contractor shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this Section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this Section.
3.2.11.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Contractor, its agents, representatives, employees, or subcontractors.
Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. The policy shall not contain any exclusion contrary to the Agreement, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another. (B) Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: minimum amount of $1,000,000 per occurrence; and $2,000,000 aggregate for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: minimum amount of $1,000,000 combined single limit per accident for bodily injury and property damage; (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation/Employer’s Liability limits with a minimum amount of $1,000,000 per accident for bodily injury or disease, as required by the Labor Code of the State of California; (4) Professional Liability: minimum amount of $1,000,000 per claim and aggregate (errors and omissions) .
Defense costs shall be paid in addition to the limits.
(C) Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by the City will be promptly reimbursed by Contractor or the City may withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or terminate this Agreement.
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(D) Additional Insured. The City of Upland, its directors, officials, officers, employees, agents, and volunteers shall be named as additional insureds on Contractor’s and its subcontractors’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents.
3.2.11.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall include or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or endorsements providing the exact same coverage, the City of Upland, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insured with respect to the Services or ongoing and complete operations performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor ’s scheduled underlying coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City before the City’s own primary insurance or self-insurance shall be called upon to protect it as a named insured. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section
3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.3(A).
(B) Automobile Liability. The automobile liability policy shall include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way.
Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.3(B). (C) Workers’ Compensation and Employer’s Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Contractor. (D) Professional Liability (Errors and Omissions). At all times during the performance of the work under this Agreement the Contractor shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form specifically designed to protect against acts, errors, or omissions of
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the Contractor. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. (E) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and volunteers.
Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds.
3.2.11.4 Separation of Insureds; No Special Limitations; Waiver of Subrogation. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers.
All required insurance coverages, except for the professional liability coverage, shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, and shall require similar written express waivers and insurance clauses from each of its subcontractors.
3.2.11.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.
3.2.11.6 Subcontractor Insurance Requirements. Contractor shall not allow any subcontractors to commence work on any subcontract relating to the work under the Agreement until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. If requested by Contractor, the City may approve different scopes or minimum limits of insurance for particular subcontractors. The Contractor and the City shall be named as additional insurers on all subcontractors’ policies of Commercial General Liability using ISO form 20 38, or coverage at least as broad.
3.2.11.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A: VIII, licensed to do business in California, and satisfactory to the City.
3.2.11.8 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.
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3.2.11.9 Reporting of Claims. Contractor shall report to the City, in addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the Services under this Agreement.
3.2.12 Safety. Contractor shall execute and maintain their work so as to avoid injury or damage to any person or property. I n carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.
3.2.13.2 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.
3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.
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3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A: VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.
3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.
3.2.15 Work Site.
3.2.15.1 Inspection Of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters after commencement of the Services.
3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions, and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract Documents, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies, or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition.
3.2.16 Loss and Damage. Contractor shall be responsible for all loss and damage which may arise out of the nature of the Services agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Services until the same is fully completed and accepted by City.
3.2.17 Warranty. Contractor warrants all Services under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Contract, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require
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verifying that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.
3.3 Fees and Payments.
3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “B” attached hereto and incorporated herein by reference. The total annual compensation shall vary, subject to City Council approval of the annual budget itemized for Tree Care & Maintenance Services, including routine monthly services as well as Additional Extra Work, which may be authorized, as described below.
3.3.1.1 Adjustments. Beginning July 2026, upon Contractor’s request, Contractor’s rates may be adjusted no more than once per year based on the percentage change in the Consumer Price Index- All urban consumers, All Items - (Series ID# CUURS49CSA0) Riverside-San Bernardino – Ontario, CA areas for the twelve (12) month period January through January immediately preceding the adjustments. All such price adjustment requests shall be submitted by May 1st. The failure to submit price adjustment requests by May 1st shall waive the Contractor’s right to request an adjustment for that year. Upon proper notice, price adjustments shall go into effect on July 1st of the same year. In no event shall the adjustment exceed five percent (5%) in any single year.
3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized Invoice which indicates work and site locations completed specifying Services rendered by Contractor. The Invoice shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 45 days of receiving such invoice, review the statement and pay all approved charges thereon.
3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of t he Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.
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3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.
3.3.5 Emergency Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Emergency Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
The City Manager may approve Emergency Work up to ten percent (10%) of the amount of the Agreement or fifty thousand dollars ($50,000.00). In no event shall the total sum of the agreement (basic compensation amount and Extra W ork) exceed fifty thousand dollars ($50,000.00). Any Extra W ork in excess of this amount shall be approved by the City Council. Contractor shall not perform, nor be compensated for, Emergency Work without written authorization from City’s Representative.
3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify, and hold the City, its officials, officers, employees, and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements.
Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify, and hold the City, its officials, officers, employees and agents free and
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harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.5 General Provisions.
3.5.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Contractor:
West Coast Arborist, Inc.
2200 E. Via Burton Street
Anaheim, CA, 92806
Attn: Patrick Mahoney, President
City:
City of Upland
460 N. Euclid Avenue
Upland, CA 91786
Attn: City Manager
With Copy To:
City of Upland
460 N. Euclid Avenue
Upland, CA 91786
Attn: City Attorney
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
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3.5.2 Indemnification.
3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense which is caused by the sole or active negligence or willful misconduct of the City or the City’s agents, servants, or independent contractors who are directly responsible to the City.
3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense, and risk, any and all Claims covered by this indemnification section that may be brought or instituted against City or its officials, employees, agents, and volunteers. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents, and volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse City and its officials, employees, agents, and volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents, and volunteers.
3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County, California. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims, and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.
3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.5.5 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.
3.5.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
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3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement, or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer.
3.5.8 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.5.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.
3.5.11 No Third-Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third-party beneficiaries of any right or obligation assumed by the Parties.
3.5.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.
3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
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3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR
TREE MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF UPLAND
AND WEST COAST ARBORIST, INC.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.
CITY OF UPLAND
APPROVED BY:
BILL VELTO
Mayor
ATTESTED BY:
KERI JOHNSON
City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
City Attorney
WEST COAST ARBORIST, INC.
By:
Its:
President_______________________________
Printed Name:
PATRICK MAHONEY_____________________
By:
Its:
Secretary ______________________________
Printed Name:
RICHARD MAHONEY_____________________
__366764______________________________
Contractor’s License Number
1000000956___________________________
DIR Registration Number
EXHIBIT A
EXHIBIT A
SCOPE OF SERVICES
The Public Works Department is responsible for providing Tree Care Maintenance to City trees located in parkways, medians, parks, landscape areas within the public right-of-way and open spaces.
The Contractor’s primary responsibility will be to maintain the City of Upland’s Urban Forest at highest industry standards by integrating innovative and progressive techniques and to follow the objectives as set forth in the specifications. The Contractor shall furnish all labor, equipment, materials, tools, services, and special skills required to perform tree care and maintenance as set forth in this specification and in keeping with the highest standards of quality and performance.
The Upland Citywide Urban Forest Management Plan requires the continual electronic maintenance of the tree inventory and related maintenance history of each City tree. The data must be contained in a management software system that is GIS based and is capable of tracking and easily running tree related reports, to include but is not limited to reports on the work orders: historic data, work in progress and the financial status.
The system will also need be capable of providing site specific tree information & providing the maintenance history to the public via the City’s website, to include but not limited to daily status reports and activity report for the public to review on the City Website.
The term of the Agreement will be for an initial Three (3) Years with Five 1-year extension options that may be granted at the City’s sole and absolute discretion. The City reserves the right to alter or modify any of the services in their sole and absolute discretion.
Exhibit B
EXHIBIT B
TREE CARE & MAITENANCE SERVICE SCHEDULE & PRICING FORM
ITEM:
DESCRIPTION:
Unit
Unit Price
Grid Pruning
1 Flat Rate Per Tree Each $74.00
Full Prune per Service Request
2 00” – 12” DSH Each $74.00
3 13” – 18” DSH Each $100.00
4 19” – 24” DSH Each $124.00
5 25” – 30” DSH Each $144.00
6 31” – 36” DSH Each $294.00
7 36” + DSH Each $494.00
Crown Raise per Service Request
8 00” – 12” DSH Each $40.00
9 13” – 18” DSH Each $45.00
10 19” – 24” DSH Each $75.00
11 25” – 30” DSH Each $95.00
12 31” – 36” DSH Each $144.00
13 36” + DSH Each $224.00
Crown Cleaning per Service Request
14 00” – 12” DSH Each $74.00
15 13” – 18” DSH Each $100.00
16 19” – 24” DSH Each $124.00
17 25” – 30” DSH Each $194.00
18 31” – 36” DSH Each $224.00
19 36” + DSH Each $274.00
Crown Reduction per Service Request
20 00” – 12” DSH Each $204.00
21 13” – 18” DSH Each $294.00
22 19” – 24” DSH Each $344.00
23 25” – 30” DSH Each $394.00
24 31” – 36” DSH Each $444.00
25 36” + DSH Each $524.00
Tree & Stump Removal
26 00” – 12” DSH Each $224.00
27 13” – 18” DSH Each $324.00
28 19” – 24” DSH Each $500.00
29 25” – 30” DSH Each $750.00
30 31” – 36” DSH Each $850.00
31 36” + DSH Each $1,000.00
Tree Removal Only (No Stump)
32 00” – 12” DSH Each $224.00
33 13” – 18” DSH Each $324.00
34 19” – 24” DSH Each $500.00
35 25” – 30” DSH Each $750.00
36 31” – 36” DSH Each $850.00
37 36” + DSH Each $1,000.00
Exhibit B
EXHIBIT B
TREE CARE & MAITENANCE SERVICE SCHEDULE & PRICING FORM
ITEM:
DESCRIPTION:
Unit
Unit Price
Palm Pruning
38 Date Palm Prune (Phoenix Spp.) Each $224.00
39 Date Palm Clean Trunk (Phoenix Spp.) Each $224.00
40 Fan Palm Prune (Washington Spp.) Each $64.00
41 Fan Palm Clean Trunk (Washington Spp.) Each $94.00
42 Prune – All other Palm Species Each $64.00
Stump Removal
43 Stump Removal per Stump Diameter Inch at Grade Dia. Inch $14.00
Tree Planting & Staking (Incl. Labor, Equip. Tree & Materials) 44 15 Gallon (2 Stakes per Spec) Each $194.00
45 24” Inch Box (2 Stakes per Spec) Each $394.00
46 36” Inch Box (2 Stakes per Spec) Each $954.00
General Labor Rates
47 One (1) Ground Person Hour $89.00
48 One (1) Equipment Operator Hour $89.00
49 One (1) Tree Trimmer Hour $89.00
Day Rate
50 Service Crew – Day Rate Day $2,136.00
51 Specialty Equipment – Day Rate Day $979.00
Emergency Services
52 Three (3) Person Crew – During Normal Business Hours Hour $300.00 53 Three (3) Person Crew – After Hours and/or Holidays Hour $450.00
General Arborist Services
54 Arborist Reports Hour $174.00
55 Level 1,2, or 3, Risk assessments hour $174.00
Other Charges
56 Traffic Control Hour $89.00
57 Plant Health Care Hour $89.00
Citywide Tree Maintenance Services - FY2023-24
Item Description Unit Unit Price
1 Grid Pruning
Flat rate price per tree Each 74.00$
Full Prune per Service Request
2 0"-12" DSH Each 74.00$
3 13"-18" DSH Each 100.00$
4 19"-24" DSH Each 124.00$
5 25"-30" DSH Each 144.00$
6 31"-36" DSH Each 294.00$
7 36"+ DSH Each 494.00$
Crown Raise per Service Request - Hardwood tree
8 0"-12" DSH Each 40.00$
9 13"-18" DSH Each 45.00$
10 19"-24" DSH Each 75.00$
11 25"-30" DSH Each 95.00$
12 31"-36" DSH Each 144.00$
13 36"+ DSH Each 224.00$
Crown Cleaning per Service Request - Hardwood tree
14 0"-12" DSH Each 74.00$
15 13"-18" DSH Each 100.00$
16 19"-24" DSH Each 124.00$
17 25"-30" DSH Each 194.00$
18 31"-36" DSH Each 224.00$
19 31"-36" DSH Each 274.00$
Crown Reduction per Service Request - Hardwood tree
20 0"-12" DSH Each 204.00$
21 13"-18" DSH Each 294.00$
22 19"-24" DSH Each 344.00$
23 25"-30" DSH Each 394.00$
24 31"-36" DSH Each 444.00$
25 36"+ DSH Each 524.00$
Palm Pruning
26 Prune Date Palm (Phoenix spp.)Each 224.00$
27 Clean Trunk for Date Palm (Phoenix spp.)Each 224.00$ 28 Prune Fan Palm (Washingtonia spp.)Each 64.00$
29 Clean Trunk for Fan Palm (Washingtonia spp.)Each 94.00$ 30 Prune all other Palm Species Each 64.00$
Tree and Stump Removal
31 0"-12" DSH Each 224.00$
32 13"-18" DSH Each 324.00$
33 19"-24" DSH Each 500.00$
34 25"-30" DSH Each 750.00$
35 31"-36" DSH Each 850.00$
36 36"+ DSH Each 1,000.00$
Tree Removal
37 0"-12" DSH Each 224.00$
38 13"-18" DSH Each 324.00$
39 19"-24" DSH Each 500.00$
40 25"-30" DSH Each 750.00$
41 31"-36" DSH Each 850.00$
42 36"+ DSH Each 1,000.00$
Stump Removal
43 Stump Removal per Stump Diameter Inch at Grade Dia Inch 14.00$ Tree Planting and Skating
44 15 gallon (double skated per specs) - Labor, Equipment, Tree and Materials Each 194.00$ 45 24" inch box (double skated per specs) - Labor, Equipment, Tree and Materials Each 394.00$ 46 36" inch box (double skated per specs) - Labor, Equipment, Tree and Materials Each 954.00$ General Labor Rates
47 Rate for 1 Ground-person Hour 89.00$
48 Rate for 1 Equipment Operator Hour 89.00$
49 Rate for 1 Trimmer Hour 89.00$
Day Rate
50 Day Rate Service Crew Day 2,136.00$
51 Specilaty Equipment Day Rate Day 979.00$
Emergency Services
52 During normal business hours (based on 3 person crew)Hour 300.00$ 53 After hours, weekends &/or holidays (based on 3 person crew)Hour 450.00$ General Arborist Services
54 Arborist Reports Hour 174.00$
55 Level 1, 2, 3 Risk Assessments Hour 174.00$
Other Charges
56 Traffic Control Hour 89.00$
57 Plant Health Care Hour 89.00$
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ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
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ϭ͘ϯ/^Z
WE/
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sĞŶĚŽƌƐĨŝŶĚŝŶŐĚŝƐĐƌĞƉĂŶĐŝĞƐŽƌŽŵŝƐƐŝŽŶƐŝŶƚŚĞZ&WŽƌŚĂǀŝŶŐĂŶLJĚŽƵďƚƐĂƐƚŽƚŚĞŵĞĂŶŝŶŐŽƌŝŶƚĞŶƚŽĨĂŶLJ ƉĂƌƚƚŚĞƌĞŽĨƐŚĂůůƐƵďŵŝƚƐƵĐŚƋƵĞƐƚŝŽŶƐŽƌĐŽŶĐĞƌŶƐŝŶǁƌŝƚŝŶŐĞůĞĐƚƌŽŶŝĐĂůůLJǀŝĂWůĂŶĞƚŝĚƐ͘EŽƌĞƐƉŽŶƐŝďŝůŝƚLJ ǁŝůůďĞĂĐĐĞƉƚĞĚĨŽƌŽƌĂůŝŶƐƚƌƵĐƚŝŽŶƐ͘ĚĚĞŶĚĂŝƐƐƵĞĚŝŶĐŽƌƌĞƐƉŽŶĚĞŶĐĞƚŽƚŚŝƐZ&WƐŚĂůůďĞĐŽŶƐŝĚĞƌĞĚĂƉĂƌƚ ŽĨƚŚŝƐZ&WĂŶĚƐŚĂůůďĞĐŽŵĞƉĂƌƚŽĨĂŶLJĨŝŶĂůŽŶƚƌĂĐƚƚŚĂƚŵĂLJďĞĚĞƌŝǀĞĚĨƌŽŵƚŚŝƐZ&W͘
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E/
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dŚŝƐZ&WƐŚŽƵůĚŶŽƚďĞĐŽŶƐŝĚĞƌĞĚĂƐĂŽŶƚƌĂĐƚƚŽƉƵƌĐŚĂƐĞŐŽŽĚƐŽƌƐĞƌǀŝĐĞƐďƵƚŝƐĂZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůŝŶ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞdĞƌŵƐĂŶĚŽŶĚŝƚŝŽŶƐŚĞƌĞŝŶĂŶĚǁŝůůŶŽƚŶĞĐĞƐƐĂƌŝůLJŐŝǀĞƌŝƐĞƚŽĂŽŶƚƌĂĐƚ͘,ŽǁĞǀĞƌ͕ Z&WƌĞƐƉŽŶƐĞƐƐŚŽƵůĚďĞĂƐĚĞƚĂŝůĞĚĂŶĚĐŽŵƉůĞƚĞĂƐƉŽƐƐŝďůĞƚŽĨĂĐŝůŝƚĂƚĞƚŚĞĨŽƌŵĂƚŝŽŶŽĨĂŽŶƚƌĂĐƚďĂƐĞĚ ŽŶƚŚĞZ&WƌĞƐƉŽŶƐĞ;ƐͿƚŚĂƚĂƌĞƉƵƌƐƵĞĚƐŚŽƵůĚƚŚĞŝƚLJĚĞĐŝĚĞƚŽĚŽƐŽ͘
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ŶLJ^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐ͕ŽŶƚŝŶŐĞŶĐŝĞƐ͕^ƉĞĐŝĂů/ŶƐƚƌƵĐƚŝŽŶĂŶĚͬŽƌdĞƌŵƐĂŶĚŽŶĚŝƚŝŽŶƐĂƉƉůŝĐĂďůĞƚŽƚŚŝƐZ&W ĂŶĚĂŶLJWƵƌĐŚĂƐĞKƌĚĞƌĚĞƌŝǀĞĚƚŚĞƌĞĂĨƚĞƌƐŚĂůůďĞĞĨĨĞĐƚŝǀĞĂƐŽĨƚŚĞŝƐƐƵĞĚĂƚĞŽĨWƵƌĐŚĂƐĞKƌĚĞƌ;ƚŚĞ ͞
ĨĨĞĐƚŝǀĞĂƚĞ͟Ϳ͕ĂŶĚƐŚĂůůƌĞŵĂŝŶŝŶĨƵůůĨŽƌĐĞĂŶĚĞĨĨĞĐƚƵŶƚŝůƐŝdžƚLJ;ϲϬͿĚĂLJƐĂĨƚĞƌƚŚĞŝƚLJŚĂƐĂĐĐĞƉƚĞĚƚŚĞ ǁŽƌŬŝŶǁƌŝƚŝŶŐĂŶĚŚĂƐŵĂĚĞĨŝŶĂůƉĂLJŵĞŶƚ͕ƵŶůĞƐƐƐŽŽŶĞƌƚĞƌŵŝŶĂƚĞĚďLJǁƌŝƚƚĞŶĂŐƌĞĞŵĞŶƚƐŝŐŶĞĚďLJďŽƚŚ ƉĂƌƚŝĞƐ͘
ϭ͘ϱYh
^d/KE^E>Z/&/d/KE^
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ϭ͘ϲ/^WK^/d/KEK&Dd
Z/>EKE&/
Ed/>KZWZKWZ/
dZz/E&KZDd/KE
ůůŵĂƚĞƌŝĂůƐƐƵďŵŝƚƚĞĚŝŶƌĞƐƉŽŶƐĞƚŽƚŚĞZ&WƐŽůŝĐŝƚĂƚŝŽŶǁŝůůďĞĐŽŵĞƚŚĞƉƌŽƉĞƌƚLJŽĨƚŚĞŝƚLJĂŶĚǁŝůůďĞ ƌĞƚƵƌŶĞĚŽŶůLJĂƚƚŚĞŝƚLJ͛ƐŽƉƚŝŽŶĂŶĚĂƚƚŚĞĞdžƉĞŶƐĞŽĨƚŚĞsĞŶĚŽƌƐƵďŵŝƚƚŝŶŐƚŚĞZ&WƌĞƐƉŽŶƐĞ͘ĐŽƉLJŽĨƚŚĞ Z&WƌĞƐƉŽŶƐĞǁŝůůďĞƌĞƚĂŝŶĞĚĨŽƌŽĨĨŝĐŝĂůĨŝůĞƐĂŶĚďĞĐŽŵĞĂƉƵďůŝĐƌĞĐŽƌĚ͘ŶLJŵĂƚĞƌŝĂůƚŚĂƚĂsĞŶĚŽƌĐŽŶƐŝĚĞƌƐ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
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ĂƐĐŽŶĨŝĚĞŶƚŝĂůďƵƚĚŽĞƐŶŽƚŵĞĞƚƚŚĞĚŝƐĐůŽƐƵƌĞĞdžĞŵƉƚŝŽŶƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞĂůŝĨŽƌŶŝĂWƵďůŝĐZĞĐŽƌĚƐĐƚ ƐŚŽƵůĚŶŽƚďĞŝŶĐůƵĚĞĚŝŶƚŚĞsĞŶĚŽƌ͛ƐZ&WƌĞƐƉŽŶƐĞĂƐŝƚŵĂLJďĞŵĂĚĞĂǀĂŝůĂďůĞƚŽƚŚĞƉƵďůŝĐ͘
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ϭ͘ϳ
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K&Z
Yh/Z
D
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dŚĞsĞŶĚŽƌƐŚĂůůĐĂƌĞĨƵůůLJƌĞǀŝĞǁĂůůĚŽĐƵŵĞŶƚƐƌĞĨĞƌĞŶĐĞĚĂŶĚŵĂĚĞĂƉĂƌƚŽĨƚŚĞƐŽůŝĐŝƚĂƚŝŽŶĚŽĐƵŵĞŶƚƚŽ ĞŶƐƵƌĞƚŚĂƚĂůůŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚƚŽƉƌŽƉĞƌůLJƌĞƐƉŽŶĚŚĂƐďĞĞŶƐƵďŵŝƚƚĞĚŽƌŵĂĚĞĂǀĂŝůĂďůĞĂŶĚĂůů ƌĞƋƵŝƌĞŵĞŶƚƐĂƌĞƉƌŝĐĞĚŝŶƚŚĞZ&WƌĞƐƉŽŶƐĞ͘&ĂŝůƵƌĞƚŽĞdžĂŵŝŶĞĂŶLJĚŽĐƵŵĞŶƚƐ͕ĚƌĂǁŝŶŐƐ͕ƐƉĞĐŝĨŝĐĂƚŝŽŶƐ͕Žƌ ŝŶƐƚƌƵĐƚŝŽŶƐǁŝůůďĞĂƚƚŚĞsĞŶĚŽƌ͛ƐƐŽůĞƌŝƐŬ͘
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dŚĞŝƐƐƵĂŶĐĞŽĨƚŚŝƐZ&WĚŽĞƐŶŽƚĐŽŶƐƚŝƚƵƚĞĂŶĂŐƌĞĞŵĞŶƚďLJƚŚĞŝƚLJƚŚĂƚĂŶLJĐŽŶƚƌĂĐƚǁŝůůďĞĞŶƚĞƌĞĚďLJƚŚĞ ŝƚLJ͘dŚĞŝƚLJĞdžƉƌĞƐƐůLJƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚĂƚĂŶLJƚŝŵĞƚŽ͗ xtĂŝǀĞŽƌĐŽƌƌĞĐƚĂŶLJĚĞĨĞĐƚŽƌŝŶĨŽƌŵĂůŝƚLJŝŶĂŶLJƌĞƐƉŽŶƐĞ͕Z&W͕ŽƌZ&WƉƌŽĐĞĚƵƌĞ͘ xZĞũĞĐƚĂŶLJŽƌĂůůZ&WƐ͘
xZĞŝƐƐƵĞĂZĞƋƵĞƐƚĨŽƌZ&WƐ͘
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ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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dŚĞƐĞůĞĐƚĞĚsĞŶĚŽƌĂǁĂƌĚĞĚĂŽŶƚƌĂĐƚƐŚĂůůďĞƌĞƋƵŝƌĞĚƚŽŽďƚĂŝŶĂZĂŶĐŚŽƵĐĂŵŽŶŐĂƵƐŝŶĞƐƐ>ŝĐĞŶƐĞŶŽ ůĂƚĞƌƚŚĂŶĨŝǀĞ;ϱͿďƵƐŝŶĞƐƐĚĂLJƐĨƌŽŵŶŽƚŝĨŝĐĂƚŝŽŶŽĨĂǁĂƌĚƉƌŝŽƌƚŽďĞŝŶŐŝƐƐƵĞĚĂWƵƌĐŚĂƐĞKƌĚĞƌ͘ǁĂƌĚĞĚ sĞŶĚŽƌŵƵƐƚƉŽƐƐĞƐƐĂŶĚŵĂŝŶƚĂŝŶĂůůĂƉƉƌŽƉƌŝĂƚĞůŝĐĞŶƐĞƐͬĐĞƌƚŝĨŝĐĂƚŝŽŶƐŶĞĐĞƐƐĂƌLJŝŶƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨ ĚƵƚŝĞƐƌĞƋƵŝƌĞĚƵŶĚĞƌƚŚŝƐZ&WĂŶĚǁŝůůƉƌŽǀŝĚĞĐŽƉŝĞƐŽĨůŝĐĞŶƐĞƐͬĐĞƌƚŝĨŝĐĂƚŝŽŶƐŝŵŵĞĚŝĂƚĞůLJƵƉŽŶƌĞƋƵĞƐƚ ƚŚƌŽƵŐŚŽƵƚƚŚĞƚĞƌŵŽĨƚŚĞŽŶƚƌĂĐƚ͘
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ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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tŚĞƌĞůĂďŽƌŝƐƌĞƋƵŝƌĞĚĨŽƌƉƵďůŝĐǁŽƌŬĂƐĂƉĂƌƚŽĨĂŶLJƌĞƋƵŝƌĞŵĞŶƚĐŽǀĞƌĞĚďLJƚŚŝƐZ&W͕ƉƵƌƐƵĂŶƚƚŽƚŚĞ ƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞ>ĂďŽƌŽĚĞŽĨƚŚĞ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͕sĞŶĚŽƌ;ƐͿƐŚĂůůƉĂLJŶŽůĞƐƐƚŚĂŶƚŚŽƐĞŵŝŶŝŵƵŵǁĂŐĞƐ͘
Z
WZ
^
Edd/s
^
^ŚŽƵůĚƚŚĞĂǁĂƌĚĞĚsĞŶĚŽƌƌĞƋƵŝƌĞƚŚĞƐĞƌǀŝĐĞƐŽĨĂƚŚŝƌĚͲƉĂƌƚLJƚŽĐŽŵƉůĞƚĞƚŚĞ^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐŝŶĚŝĐĂƚĞĚ ŝŶƚŚŝƐZ&W͕ƚŚĞĂǁĂƌĚĞĚsĞŶĚŽƌǁŝůůŶŽƚĂƐƐŝŐŶ͕ƚƌĂŶƐĨĞƌ͕ĐŽŶǀĞLJŽƌŽƚŚĞƌǁŝƐĞĚŝƐƉŽƐĞŽĨƚŚĞĐŽŶƚƌĂĐƚŽƌŝƚƐ ƌŝŐŚƚ͕ƚŝƚůĞŽƌŝŶƚĞƌĞƐƚŝŶŽƌƚŽƚŚĞƐĂŵĞ͕ŽƌĂŶLJƉĂƌƚƚŚĞƌĞŽĨ͘ŶLJĂƚƚĞŵƉƚďLJƚŚĞĂǁĂƌĚĞĚsĞŶĚŽƌƚŽƐŽĂƐƐŝŐŶ͕ ƚƌĂŶƐĨĞƌ͕ŽƌƐƵďĐŽŶƚƌĂĐƚĂŶLJƌŝŐŚƚƐ͕ĚƵƚŝĞƐ͕ŽƌŽďůŝŐĂƚŝŽŶƐĂƌŝƐŝŶŐŚĞƌĞƵŶĚĞƌƐŚĂůůďĞŶƵůů͕ǀŽŝĚĂŶĚŽĨŶŽĞĨĨĞĐƚ͘
dŚĞĂǁĂƌĚĞĚsĞŶĚŽƌƐŚĂůůďĞƐŽůĞůLJƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƐĂƚŝƐĨĂĐƚŽƌLJǁŽƌŬƉĞƌĨŽƌŵĂŶĐĞŽĨĂůůƉĞƌƐŽŶŶĞůĞŶŐĂŐĞĚ ŝŶƉĞƌĨŽƌŵŝŶŐƚŚĞ^ĞƌǀŝĐĞƐŝŶĐůƵĚŝŶŐsĞŶĚŽƌƐƐƵďĐŽŶƚƌĂĐƚŽƌ͘ůů^ĞƌǀŝĐĞƐƐŚĂůůďĞƉĞƌĨŽƌŵĞĚďLJƚŚĞĂǁĂƌĚĞĚ sĞŶĚŽƌŽƌƵŶĚĞƌƚŚĞĂǁĂƌĚĞĚsĞŶĚŽƌ͛ƐĚŝƌĞĐƚƐƵƉĞƌǀŝƐŝŽŶ͕ĂŶĚĂůůƉĞƌƐŽŶŶĞůƐŚĂůůƉŽƐƐĞƐƐƚŚĞƋƵĂůŝĨŝĐĂƚŝŽŶƐ͕ ƉĞƌŵŝƚƐ͕ĂŶĚůŝĐĞŶƐĞƐƌĞƋƵŝƌĞĚďLJƐƚĂƚĞĂŶĚůŽĐĂůůĂǁƚŽƉĞƌĨŽƌŵƐƵĐŚƐĞƌǀŝĐĞƐ͘
dŚĞĂǁĂƌĚĞĚsĞŶĚŽƌƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƉĂLJŵĞŶƚŽĨĂůůĞŵƉůŽLJĞĞƐ͛ĂŶĚƐƵďĐŽŶƚƌĂĐƚŽƌƐ͛ǁĂŐĞƐĂŶĚ ďĞŶĞĨŝƚƐĂŶĚƐŚĂůůĐŽŵƉůLJǁŝƚŚĂůůƌĞƋƵŝƌĞŵĞŶƚƐƉĞƌƚĂŝŶŝŶŐƚŽĞŵƉůŽLJĞƌ͛ƐůŝĂďŝůŝƚLJ͕ǁŽƌŬĞƌƐ͛ĐŽŵƉĞŶƐĂƚŝŽŶ͕ ƵŶĞŵƉůŽLJŵĞŶƚŝŶƐƵƌĂŶĐĞ͕ĂŶĚ^ŽĐŝĂů^ĞĐƵƌŝƚLJ͘LJŝƚƐĞdžĞĐƵƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕sĞŶĚŽƌĐĞƌƚŝĨŝĞƐƚŚĂƚŝƚŝƐ ĂǁĂƌĞŽĨƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨ^ĞĐƚŝŽŶϯϳϬϬŽĨƚŚĞĂůŝĨŽƌŶŝĂ>ĂďŽƌŽĚĞƚŚĂƚƌĞƋƵŝƌĞĞǀĞƌLJĞŵƉůŽLJĞƌƚŽďĞŝŶƐƵƌĞĚ ĂŐĂŝŶƐƚůŝĂďŝůŝƚLJĨŽƌtŽƌŬĞƌΖƐŽŵƉĞŶƐĂƚŝŽŶŽƌƚŽƵŶĚĞƌƚĂŬĞƐĞůĨͲŝŶƐƵƌĂŶĐĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨ ƚŚĂƚŽĚĞĂŶĚĂŐƌĞĞƐƚŽĐŽŵƉůLJǁŝƚŚƐƵĐŚƉƌŽǀŝƐŝŽŶƐďĞĨŽƌĞĐŽŵŵĞŶĐŝŶŐƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞƐĞƌǀŝĐĞƐ͘ /ŶĐĂƐĞŽĨĚĞĨĂƵůƚďLJƚŚĞsĞŶĚŽƌ͕ƚŚĞŝƚLJŵĂLJƚĂŬĞƚŚĞĨŽůůŽǁŝŶŐĂĐƚŝŽŶƐǁŚŝĐŚƐŚĂůůŝŶĐůƵĚĞďƵƚŶŽƚďĞůŝŵŝƚĞĚ ƚŽ͖ĐĂŶĐĞůůĂƚŝŽŶŽĨĂŶLJƉƵƌĐŚĂƐĞŽƌĚĞƌ͕ƉƌŽĐƵƌĞŵĞŶƚŽĨƚŚĞĂƌƚŝĐůĞƐŽƌƐĞƌǀŝĐĞĨƌŽŵŽƚŚĞƌƐŽƵƌĐĞƐĂŶĚŵĂLJ ĚĞĚƵĐƚĨƌŽŵƵŶƉĂŝĚďĂůĂŶĐĞĚƵĞƚŽƚŚĞsĞŶĚŽƌ͕ŽƌŵĂLJďŝůůĨŽƌĞdžĐĞƐƐĐŽƐƚƐƐŽƉĂŝĚ͕ĂŶĚƚŚĞƉƌŝĐĞƐƉĂŝĚďLJƚŚĞ ŝƚLJƐŚĂůůďĞĐŽŶƐŝĚĞƌĞĚƚŚĞƉƌĞǀĂŝůŝŶŐŵĂƌŬĞƚƉƌŝĐĞƐƉĂŝĚĂƚƚŚĞƚŝŵĞƐƵĐŚƉƵƌĐŚĂƐĞŝƐŵĂĚĞ͕ǁŝƚŚŚŽůĚŝŶŐŽĨ ƉĂLJŵĞŶƚƵŶƚŝůĨŝŶĂůƌĞƐŽůƵƚŝŽŶ͘ŽƐƚŽĨƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͕ŚĂŶĚůŝŶŐ͕ĂŶĚͬŽƌŝŶƐƉĞĐƚŝŽŶŽŶĚĞůŝǀĞƌŝĞƐ͕ŽƌsĞŶĚŽƌƐ ĨŽƌĚĞůŝǀĞƌLJ͕ǁŚŝĐŚĚŽŶŽƚŵĞĞƚƐƉĞĐŝĨŝĐĂƚŝŽŶƐ͕ǁŝůůďĞĨŽƌƚŚĞĂĐĐŽƵŶƚŽĨƚŚĞsĞŶĚŽƌ͘
ŝƚLJZĞƉƌĞƐĞŶƚĂƚŝǀĞ͗
&Žƌ ƚŚĞ ƉƵƌƉŽƐĞƐ ŽĨ ƚŚŝƐ ŐƌĞĞŵĞŶƚ͕ ƚŚĞ ĐŽŶƚƌĂĐƚ ĂĚŵŝŶŝƐƚƌĂƚŽƌ ĂŶĚ ŝƚLJ͛Ɛ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞ ƐŚĂůů ďĞͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ͕ŽƌƐƵĐŚŽƚŚĞƌƉĞƌƐŽŶĂƐĚĞƐŝŐŶĂƚĞĚŝŶǁƌŝƚŝŶŐďLJŝƚLJ;͞ŝƚLJ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞ͟Ϳ͘/ƚ ƐŚĂůůďĞƚŚĞsĞŶĚŽƌ͛ƐƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽĂƐƐƵƌĞƚŚĂƚŝƚLJ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞŝƐŬĞƉƚŝŶĨŽƌŵĞĚŽĨƚŚĞƉƌŽŐƌĞƐƐŽĨƚŚĞ ƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞƐĞƌǀŝĐĞƐ͕ĂŶĚƚŚĞsĞŶĚŽƌƐŚĂůůƌĞĨĞƌĂŶLJĚĞĐŝƐŝŽŶƐƚŚĂƚŵƵƐƚďĞŵĂĚĞďLJŝƚLJƚŽŝƚLJ ZĞƉƌĞƐĞŶƚĂƚŝǀĞ͘hŶůĞƐƐŽƚŚĞƌǁŝƐĞƐƉĞĐŝĨŝĞĚŚĞƌĞŝŶ͕ĂŶLJĂƉƉƌŽǀĂůŽĨŝƚLJƌĞƋƵŝƌĞĚŚĞƌĞƵŶĚĞƌƐŚĂůůŵĞĂŶƚŚĞ ĂƉƉƌŽǀĂůŽĨƚŚĞŝƚLJZĞƉƌĞƐĞŶƚĂƚŝǀĞ͘
sĞŶĚŽƌZĞƉƌĞƐĞŶƚĂƚŝǀĞ͗
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϭϭŽĨϰϯ
&Žƌ ƚŚĞ ƉƵƌƉŽƐĞƐ ŽĨ ƚŚŝƐ ŐƌĞĞŵĞŶƚ͕ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ŝƐ ŚĞƌĞďLJ ĚĞƐŝŐŶĂƚĞĚ ĂƐ ƚŚĞ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞŽĨƚŚĞƐƵĐĐĞƐƐĨƵůsĞŶĚŽƌĂƵƚŚŽƌŝnjĞĚƚŽĂĐƚŝŶŝƚƐďĞŚĂůĨǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞƐĞƌǀŝĐĞƐƐƉĞĐŝĨŝĞĚ ŚĞƌĞŝŶĂŶĚŵĂŬĞĂůůĚĞĐŝƐŝŽŶƐŝŶĐŽŶŶĞĐƚŝŽŶƚŚĞƌĞǁŝƚŚ;͞sĞŶĚŽƌ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞ͟Ϳ͘/ƚŝƐĞdžƉƌĞƐƐůLJƵŶĚĞƌƐƚŽŽĚ ƚŚĂƚƚŚĞĞdžƉĞƌŝĞŶĐĞ͕ŬŶŽǁůĞĚŐĞ͕ĐĂƉĂďŝůŝƚLJĂŶĚƌĞƉƵƚĂƚŝŽŶŽĨƚŚĞsĞŶĚŽƌ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞǁĞƌĞĂƐƵďƐƚĂŶƚŝĂů ŝŶĚƵĐĞŵĞŶƚĨŽƌŝƚLJƚŽĞŶƚĞƌŝŶƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͘dŚĞƌĞĨŽƌĞ͕ƚŚĞsĞŶĚŽƌ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞ ĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌĚŝƌĞĐƚŝŶŐĂůůĂĐƚŝǀŝƚŝĞƐŽĨsĞŶĚŽƌĂŶĚĚĞǀŽƚŝŶŐĞŶŽƵŐŚƚŝŵĞƚŽƉĞƌƐŽŶĂůůLJ ƐƵƉĞƌǀŝƐĞƚŚĞƐĞƌǀŝĐĞƐŚĞƌĞƵŶĚĞƌ͘dŚĞƐƵĐĐĞƐƐĨƵůsĞŶĚŽƌŵĂLJŶŽƚĐŚĂŶŐĞƚŚĞsĞŶĚŽƌ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞǁŝƚŚŽƵƚ ƚŚĞƉƌŝŽƌǁƌŝƚƚĞŶĂƉƉƌŽǀĂůŽĨŝƚLJ͛ƐZĞƉƌĞƐĞŶƚĂƚŝǀĞ͘
DW>Kz
KEhd
ůůsĞŶĚŽƌƉĞƌƐŽŶŶĞůŵƵƐƚŽďƐĞƌǀĞĂůůŝƚLJƌĞŐƵůĂƚŝŽŶƐŝŶĞĨĨĞĐƚĂƚƚŚĞůŽĐĂƚŝŽŶǁŚĞƌĞƚŚĞ^ĞƌǀŝĐĞƐĂƌĞďĞŝŶŐ ĐŽŶĚƵĐƚĞĚ͘tŚŝůĞŽŶŝƚLJƉƌŽƉĞƌƚLJ͕ƚŚĞsĞŶĚŽƌ͛ƐƉĞƌƐŽŶŶĞůƐŚĂůůďĞƐƵďũĞĐƚƚŽŽǀĞƌƐŝŐŚƚďLJŝƚLJƐƚĂĨĨ͘hŶĚĞƌ ŶŽĐŝƌĐƵŵƐƚĂŶĐĞƐƐŚĂůůƚŚĞsĞŶĚŽƌ͛ƐŽƌsĞŶĚŽƌ͛ƐƐƵďͲĐŽŶƚƌĂĐƚŽƌƉĞƌƐŽŶŶĞůďĞĚĞĞŵĞĚĂƐĞŵƉůŽLJĞĞƐŽĨƚŚĞŝƚLJ͘ sĞŶĚŽƌŽƌsĞŶĚŽƌ͛ƐƐƵďĐŽŶƚƌĂĐƚŽƌƉĞƌƐŽŶŶĞůƐŚĂůůŶŽƚƌĞƉƌĞƐĞŶƚƚŚĞŵƐĞůǀĞƐƚŽďĞĞŵƉůŽLJĞĞƐŽĨƚŚĞŝƚLJ͘
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Ks
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ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
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ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
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y
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hŶĚĞƌƚŚŝƐƐĞĐƚŝŽŶsĞŶĚŽƌƐƐŚĂůůƉƌŽǀŝĚĞĂĨƵůů͕ĚĞƚĂŝůĞĚƌĞƐƉŽŶƐĞƚŽƚŚĞŝƚLJ͛Ɛ^ĐŽƉĞŽĨ^ĞƌǀŝĐĞƐůŝƐƚĞĚŚĞƌĞŝŶ͘ sĞŶĚŽƌƐƐŚŽƵůĚďĞĂƐƚŚŽƌŽƵŐŚĂƐƉŽƐƐŝďůĞŝŶƚŚĞŝƌƌĞƐƉŽŶƐĞĂƐŝƚŵĂLJďĞƚŚĞŽŶůLJŽƉƉŽƌƚƵŶŝƚLJƚŽĐŽŶǀĞLJ ŝŶĨŽƌŵĂƚŝŽŶƌĞŐĂƌĚŝŶŐLJŽƵƌďƵƐŝŶĞƐƐ͕ĂďŝůŝƚLJĂŶĚƋƵĂůŝĨŝĐĂƚŝŽŶƐƚŽĐŽŵƉůĞƚĞƚŚĞƐĞƌǀŝĐĞƐŶĞĞĚĞĚ͘
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WƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐŐƌĞĞŵĞŶƚ
džĐĞƉƚŝŽŶƐ^ƵŵŵĂƌLJ͟ĂŶĚƚŚĞŝƚLJĂŐƌĞĞƐƚŽĞŝƚŚĞƌĂĐĐĞƉƚƚŚĞŽďũĞĐƚŝŽŶŽƌ ĚĞǀŝĂƚŝŽŶŽƌĐŚĂŶŐĞƚŚĞW^ůĂŶŐƵĂŐĞŝŶǁƌŝƚŝŶŐ͘&ĂŝůƵƌĞƚŽƌĂŝƐĞĂŶLJŽďũĞĐƚŝŽŶƐĂƚƚŚĞƚŝŵĞŽĨƚŚŝƐZ&WƌĞƐƉŽŶƐĞ ƐƵďŵŝƚƚĂůǁŝůůƌĞƐƵůƚŝŶĂǁĂŝǀĞƌŽĨŽďũĞĐƚŝŽŶƚŽĂŶLJŽĨƚŚĞĐŽŶƚƌĂĐƚƵĂůůĂŶŐƵĂŐĞŝŶƚŚĞW^ĂƚĂŶLJŽƚŚĞƌƚŝŵĞ͘ dŚĞƐŝŐŶĞĚ
džĐĞƉƚŝŽŶ^ƵŵŵĂƌLJƐŚĂůůďĞŝŶĐůƵĚĞĚƵŶĚĞƌƚŚŝƐƐĞĐƚŝŽŶŽĨƚŚĞZ&WƌĞƐƉŽŶƐĞ͘
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sĞŶĚŽƌƐŵƵƐƚŵĞĞƚĂůůŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐĂƐŽƵƚůŝŶĞĚŝŶƚŚĞWƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐŐƌĞĞŵĞŶƚ͘ďŝůŝƚLJƚŽ ĐŽŵƉůLJǁŝƚŚƐĂŝĚƌĞƋƵŝƌĞŵĞŶƚƐŵƵƐƚďĞŝŶĚŝĐĂƚĞĚǁŝƚŚƐŝŐŶĂƚƵƌĞŽĨ͞ džŚŝďŝƚ͕ĐŬŶŽǁůĞĚŐĞŵĞŶƚŽĨ/ŶƐƵƌĂŶĐĞ
ZĞƋƵŝƌĞŵĞŶƚƐĂŶĚĞƌƚŝĨŝĐĂƚŝŽŶŽĨďŝůŝƚLJƚŽWƌŽǀŝĚĞĂŶĚDĂŝŶƚĂŝŶŽǀĞƌĂŐĞƐ^ƉĞĐŝĨŝĞĚ͕͟ǁŚŝĐŚŵƵƐƚďĞ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϭϰŽĨϰϯ
ƐƵďŵŝƚƚĞĚǁŝƚŚƚŚĞŝĚƵŶĚĞƌƚŚĞ/ŶƐƵƌĂŶĐĞƚĂď͘dŚĞĂǁĂƌĚĞĚsĞŶĚŽƌǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƉƌŽǀŝĚŝŶŐƚŚĞ ƌĞƋƵŝƌĞĚĞƌƚŝĨŝĐĂƚĞƐŽĨ/ŶƐƵƌĂŶĐĞĂŶĚŵƵƐƚďĞƚŚĞEĂŵĞĚ/ŶƐƵƌĞĚŽŶƚŚĞĞƌƚŝĨŝĐĂƚĞƐ͘ĞƌƚŝĨŝĐĂƚĞƐŽĨ/ŶƐƵƌĂŶĐĞ ĨƌŽŵĂŶLJŽƚŚĞƌĞŶƚŝƚLJŽƚŚĞƌƚŚĂŶƚŚĞĂǁĂƌĚĞĚsĞŶĚŽƌ͕ǁŝůůŶŽƚďĞĂĐĐĞƉƚĞĚ͘
EhD
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dŚĞsĞŶĚŽƌƐŚĂůůŚĞƌĞďLJĂĐŬŶŽǁůĞĚŐĞƚŚĞLJŚĂǀĞƌĞĐĞŝǀĞĚĂůůƉŽƐƚĞĚĚĚĞŶĚƵŵƐ͕ŝĨĂŶLJ͘/ƚŝƐƚŚĞsĞŶĚŽƌ͛Ɛ ƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽůŽŐŝŶƚŽƚŚĞŝĚ^LJƐƚĞŵƚŽŝĚĞŶƚŝĨLJĂŶĚĚŽǁŶůŽĂĚƚŚĞŶƵŵďĞƌŽĨĂĚĚĞŶĚĂƚŚĂƚŚĂǀĞďĞĞŶ ƉŽƐƚĞĚ͘ĚĚĞŶĚĂŝƐƐƵĞĚŝŶĐŽƌƌĞƐƉŽŶĚĞŶĐĞƚŽƚŚŝƐZ&WƐŚĂůůďĞĐŽŶƐŝĚĞƌĞĚĂƉĂƌƚŽĨƚŚŝƐZ&WĂŶĚƐŚĂůůďĞĐŽŵĞ ƉĂƌƚŽĨĂŶLJĨŝŶĂůŽŶƚƌĂĐƚƚŚĂƚŵĂLJďĞĚĞƌŝǀĞĚĨƌŽŵƚŚŝƐZ&W͘sĞŶĚŽƌƐŵƵƐƚŝŶĚŝĐĂƚĞƚŚĞŝƌĂĐŬŶŽǁůĞĚŐĞŵĞŶƚŽĨ ĂŶLJĚĚĞŶĚƵŵƐďLJǁĂLJŽĨƐŝŐŶĂƚƵƌĞŽŶ͞
džŚŝďŝƚ͕ĚĚĞŶĚƵŵĐŬŶŽǁůĞĚŐĞŵĞŶƚ͟ĂŶĚŵƵƐƚďĞŝŶĐůƵĚĞĚ ƵŶĚĞƌƚŚŝƐƐĞĐƚŝŽŶŽĨƚŚĞZ&WƌĞƐƉŽŶƐĞ͘
ϯ͘ϭϮ
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EdE^h^W
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sĞŶĚŽƌƐŵƵƐƚǀĞƌŝĨLJďLJǁĂLJŽĨƐŝŐŶĂƚƵƌĞƚŽ͞
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͕sĞŶĚŽƌĞƌƚŝĨŝĐĂƚŝŽŶ&Žƌŵ͟ƚŚĂƚďŝĚĚŝŶŐsĞŶĚŽƌƐŵƵƐƚ ŶŽƚďĞůŝƐƚĞĚŽŶƚŚĞŐŽǀĞƌŶŵĞŶƚǁŝĚĞĞdžĐůƵƐŝŽŶƐŝŶƚŚĞ^LJƐƚĞŵĨŽƌǁĂƌĚDĂŶĂŐĞŵĞŶƚ;^DͿ͕ŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚĞŐƵŝĚĞůŝŶĞƐƵŶĚĞƌϮ&ZϮϬϬƚŚĂƚŝŵƉůĞŵĞŶƚ
džĞĐƵƚŝǀĞKƌĚĞƌƐϭϮϱϰϵ;ϯ&ZƉĂƌƚϭϵϴϲŽŵƉ͕͘Ɖ͘ϭϴϵͿ
ĂŶĚϭϮϲϴϵ;ϯ&ZƉĂƌƚϭϵϴϵŽŵƉ͕͘Ɖ͘ϮϯϱͿ͕ĂŶĚƚŚĂƚŶĞŝƚŚĞƌsĞŶĚŽƌŶŽƌĂŶLJŽĨŝƚƐƉƌŽƉŽƐĞĚƐƵďĐŽŶƚƌĂĐƚŽƌƐ ĂƌĞƚĂdžĚĞůŝŶƋƵĞŶƚǁŝƚŚƚŚĞ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͘dŚĞƐŝŐŶĞĚĞdžŚŝďŝƚŵƵƐƚďĞŝŶĐůƵĚĞĚƵŶĚĞƌƚŚŝƐƐĞĐƚŝŽŶŽĨƚŚĞ Z&WƌĞƐƉŽŶƐĞ͘
ϯ͘ϭϯWZd//Wd/KE>h^
sĞŶĚŽƌƐƐŚĂůůƉƌŽǀŝĚĞĂĐŽŵƉůĞƚĞĚ͞
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ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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WƵƌƐƵĂŶƚƚŽƉƌŽǀŝƐŝŽŶƐŽĨ>ĂďŽƌŽĚĞ^ĞĐƚŝŽŶϭϳϳϱ͕ƚŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůĨŽƌĨĞŝƚ͕ĂƐƉĞŶĂůƚLJƚŽŝƚLJ͕ŶŽƚŵŽƌĞ ƚŚĂŶƚǁŽŚƵŶĚƌĞĚĚŽůůĂƌƐ;ΨϮϬϬ͘ϬϬͿĨŽƌĞĂĐŚůĂďŽƌĞƌ͕ǁŽƌŬŵĂŶ͕ŽƌŵĞĐŚĂŶŝĐĞŵƉůŽLJĞĚĨŽƌĞĂĐŚĐĂůĞŶĚĂƌĚĂLJ ŽƌƉŽƌƚŝŽŶƚŚĞƌĞŽĨŝĨƐƵĐŚůĂďŽƌĞƌ͕ǁŽƌŬŵĂŶ͕ŽƌŵĞĐŚĂŶŝĐŝƐƉĂŝĚůĞƐƐƚŚĂŶƚŚĞŐĞŶĞƌĂůƉƌĞǀĂŝůŝŶŐƌĂƚĞŽĨǁĂŐĞƐ ŚĞƌĞŝŶďĞĨŽƌĞƐƚŝƉƵůĂƚĞĚĨŽƌĂŶLJǁŽƌŬĚŽŶĞƵŶĚĞƌƚŚĞĂƚƚĂĐŚĞĚĐŽŶƚƌĂĐƚ͕ďLJŚŝŵŽƌďLJĂŶLJƐƵďĐŽŶƚƌĂĐƚŽƌƵŶĚĞƌ Śŝŵ͕ŝŶǀŝŽůĂƚŝŽŶŽĨƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨƐĂŝĚ>ĂďŽƌŽĚĞ͘
dŚŝƐĐŽŶƚƌĂĐƚŝƐƐƵďũĞĐƚƚŽĐŽŵƉůŝĂŶĐĞŵŽŶŝƚŽƌŝŶŐĂŶĚĞŶĨŽƌĐĞŵĞŶƚďLJƚŚĞĞƉĂƌƚŵĞŶƚŽĨ/ŶĚƵƐƚƌŝĂůZĞůĂƚŝŽŶƐ͘
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ĂĐŚŽŶƚƌĂĐƚŽƌŽƌ^ƵďĐŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌĞƐĞƌǀĞŚŝƐǁĞĞŬůLJƉĂLJƌŽůůƌĞĐŽƌĚƐĨŽƌĂƉĞƌŝŽĚŽĨƚŚƌĞĞ;ϯͿLJĞĂƌƐ͘dŚĞ ƉĂLJƌŽůůƌĞĐŽƌĚƐƐŚĂůůƐĞƚŽƵƚĂĐĐƵƌĂƚĞůLJĂŶĚĐŽŵƉůĞƚĞůLJƚŚĞŶĂŵĞ͕ĂĚĚƌĞƐƐ͕ƐŽĐŝĂůƐĞĐƵƌŝƚLJŶƵŵďĞƌ͕ŽĐĐƵƉĂƚŝŽŶĂů
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ĐůĂƐƐŝĨŝĐĂƚŝŽŶ͕ĂŶĚŚŽƵƌůLJǁĂŐĞƌĂƚĞŽĨĞĂĐŚĞŵƉůŽLJĞĞ͕ŚŽƵƌƐǁŽƌŬĞĚďLJŚŝŵĚƵƌŝŶŐƚŚĞƉĂLJƌŽůůƉĞƌŝŽĚ͕ĂŶĚĨƵůů ǁĞĞŬůLJǁĂŐĞƐĞĂƌŶĞĚďLJŚŝŵ͕ĂŶLJĚĞĚƵĐƚŝŽŶƐŵĂĚĞĨƌŽŵƐƵĐŚǁĞĞŬůLJǁĂŐĞƐ͕ĂŶĚƚŚĞĂĐƚƵĂůǁĞĞŬůLJǁĂŐĞƐƉĂŝĚ ƚŽŚŝŵ͘
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WWZ
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ƚƚĞŶƚŝŽŶ ŝƐ ĚŝƌĞĐƚĞĚ ƚŽ ƚŚĞ ƉƌŽǀŝƐŝŽŶƐ ŝŶ ^ĞĐƚŝŽŶ ϭϳϳϳ͘ϱ ĂŶĚ ϭϳϳϳ͘ϲ ŽĨ ƚŚĞ >ĂďŽƌ ŽĚĞ ĐŽŶĐĞƌŶŝŶŐ ƚŚĞ ĞŵƉůŽLJŵĞŶƚŽĨĂƉƉƌĞŶƚŝĐĞƐďLJƚŚĞŽŶƚƌĂĐƚŽƌŽƌĂŶLJƐƵďĐŽŶƚƌĂĐƚŽƌƵŶĚĞƌŚŝŵ͘
^ĞĐƚŝŽŶ ϭϳϳϳ͘ϱ͕ ĂƐ ĂŵĞŶĚĞĚ͕ ƌĞƋƵŝƌĞƐ ƚŚĞ ŽŶƚƌĂĐƚŽƌ Žƌ ƐƵďĐŽŶƚƌĂĐƚŽƌ ĞŵƉůŽLJŝŶŐ ƚƌĂĚĞƐŵĞŶ ŝŶ ĂŶLJ ĂƉƉƌĞŶƚŝĐĞůŝŬĞŽĐĐƵƉĂƚŝŽŶƚŽĂƉƉůLJƚŽƚŚĞũŽŝŶƚĂƉƉƌĞŶƚŝĐĞƐŚŝƉĐŽŵŵŝƚƚĞĞŶĞĂƌĞƐƚƚŚĞƐŝƚĞŽĨƚŚĞƉƵďůŝĐǁŽƌŬƐ ƉƌŽũĞĐƚĂŶĚǁŚŝĐŚĂĚŵŝŶŝƐƚĞƌƐƚŚĞĂƉƉƌĞŶƚŝĐĞƐŚŝƉƉƌŽŐƌĂŵŝŶƚŚĂƚƚƌĂĚĞĨŽƌĂĐĞƌƚŝĨŝĐĂƚĞŽĨĂƉƉƌŽǀĂů͘dŚĞ ĐĞƌƚŝĨŝĐĂƚĞǁŝůůĂůƐŽĨŝdžƚŚĞƌĂƚŝŽŽĨĂƉƉƌĞŶƚŝĐĞƐƚŽũŽƵƌŶĞLJŵĞŶƚŚĂƚǁŝůůďĞƵƐĞĚŝŶƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ ĐŽŶƚƌĂĐƚ͘dŚĞƌĂƚŝŽŽĨĂƉƉƌĞŶƚŝĐĞƐƚŽũŽƵƌŶĞLJŵĞŶŝŶƐƵĐŚĐĂƐĞƐƐŚĂůůŶŽƚďĞůĞƐƐƚŚĂŶŽŶĞƚŽĨŝǀĞĞdžĐĞƉƚ͗
;ĂͿtŚĞŶƵŶĞŵƉůŽLJŵĞŶƚĂƌŽƵŶĚĐŽǀĞƌĂŐĞďLJƚŚĞũŽŝŶƚĂƉƉƌĞŶƚŝĐĞƐŚŝƉĐŽŵŵŝƚƚĞĞŚĂƐĞdžĐĞĞĚĞĚĂŶĂǀĞƌĂŐĞ ŽĨϭϱƉĞƌĐĞŶƚŝŶƚŚĞϵϬĚĂLJƐƉƌŝŽƌƚŽƚŚĞƌĞƋƵĞƐƚĨŽƌĐĞƌƚŝĨŝĐĂƚĞ͕Žƌ ;ďͿtŚĞŶƚŚĞŶƵŵďĞƌŽĨĂƉƉƌĞŶƚŝĐĞƐŝŶƚƌĂŝŶŝŶŐŝŶƚŚĞĂƌĞĂĞdžĐĞĞĚƐĂƌĂƚŝŽŽĨŽŶĞƚŽĨŝǀĞ͕Žƌ ;ĐͿtŚĞŶƚŚĞƚƌĂĚĞĐĂŶƐŚŽǁƚŚĂƚŝƚŝƐƌĞƉůĂĐŝŶŐĂƚůĞĂƐƚϭͬϯϬŽĨŝƚƐŵĞŵďĞƌƐŚŝƉƚŚƌŽƵŐŚĂƉƉƌĞŶƚŝĐĞƐŚŝƉ ƚƌĂŝŶŝŶŐŽŶĂŶĂŶŶƵĂůďĂƐŝƐƐƚĂƚĞǁŝĚĞŽƌůŽĐĂůůLJ͕Žƌ
;ĚͿtŚĞŶƚŚĞŽŶƚƌĂĐƚŽƌƉƌŽǀŝĚĞƐĞǀŝĚĞŶĐĞƚŚĂƚŚĞĞŵƉůŽLJƐƌĞŐŝƐƚĞƌĞĚĂƉƉƌĞŶƚŝĐĞƐŽŶĂůůŚŝƐĐŽŶƚƌĂĐƚƐŽŶ ĂŶĂŶŶƵĂůĂǀĞƌĂŐĞŽĨŶŽƚůĞƐƐƚŚĂŶŽŶĞĂƉƉƌĞŶƚŝĐĞƚŽĞŝŐŚƚũŽƵƌŶĞLJŵĞŶ͘ dŚĞŽŶƚƌĂĐƚŽƌŝƐƌĞƋƵŝƌĞĚƚŽŵĂŬĞĐŽŶƚƌŝďƵƚŝŽŶƐƚŽĨƵŶĚƐĞƐƚĂďůŝƐŚĞĚĨŽƌƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨĂƉƉƌĞŶƚŝĐĞƐŚŝƉ ƉƌŽŐƌĂŵƐŝĨŚĞĞŵƉůŽLJƐƌĞŐŝƐƚĞƌĞĚĂƉƉƌĞŶƚŝĐĞƐŽƌũŽƵƌŶĞLJŵĞŶŝŶĂŶLJĂƉƉƌĞŶƚŝĐĞůŝŬĞƚƌĂĚĞŽŶƐƵĐŚĐŽŶƚƌĂĐƚƐ ĂŶĚŝĨŽƚŚĞƌĐŽŶƚƌĂĐƚŽƌƐŽŶƚŚĞƉƵďůŝĐǁŽƌŬƐƐŝƚĞĂƌĞŵĂŬŝŶŐƐƵĐŚĐŽŶƚƌŝďƵƚŝŽŶƐ͘
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dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌŽǀŝĚĞĂĐĞůůƵůĂƌƚĞůĞƉŚŽŶĞƚŽĞĂĐŚƐƵƉĞƌǀŝƐŽƌ͘ ĂĐŚƐƵƉĞƌǀŝƐŽƌƐŚĂůůĐĂƌƌLJƚŚĞƚĞůĞƉŚŽŶĞ
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ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϬŽĨϰϯ
ŽƌƉŝƉĞůŽǁŝŶŐĂŶĚĚƌŝǀŝŶŐ͕ŽƌĂŶLJŽƚŚĞƌǁĂLJ͘ΗdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůĂƐƐƵŵĞĂůůůŝĂďŝůŝƚLJŝŶĐƵƌƌĞĚĨƌŽŵĂŶLJƚLJƉĞ ŽĨĞdžĐĂǀĂƚŝŽŶƉĞƌĨŽƌŵĞĚĂƚƚŚĞǁŽƌŬƐŝƚĞ͘
D
^hZ
D
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;ĂͿdŚĞŽŶƚƌĂĐƚŽƌǁŝůůďĞƉĂŝĚǁŝƚŚŝŶƚŚŝƌƚLJĚĂLJƐŽĨŝŶǀŽŝĐĞƐƵďŵŝƚƚĂůďĂƐĞĚƵƉŽŶƚŚĞƐĐŚĞĚƵůĞŽĨƵŶŝƚ ĐŽƐƚĂŶĚůƵŵƉƐƵŵĂŵŽƵŶƚƐ͘dŚĞŝŶǀŽŝĐĞƐŚĂůůŝŶĐůƵĚĞƚŚĞĂƉƉƌ ŽƉƌŝĂƚĞĨƵŶĚŶƵŵďĞƌĂŶĚƉƵƌĐŚĂƐĞ ŽƌĚĞƌŶƵŵďĞƌĨŽƌƚŚŝƐĐŽŶƚƌĂĐƚ͘
;ďͿdŚĞƋƵĂŶƚŝƚLJŝŶǀŽŝĐĞĚĂŶĚƉĂŝĚƐŚĂůůďĞƌĞĨůĞĐƚŝǀĞŽĨƚŚĞƚŽƚĂůƚƌĞĞĐŽƵŶƚ͕ƵŶŝƚĐŽƐƚƐ͕ĂŶĚůƵŵƉƐƵŵ ĂŵŽƵŶƚƐƐŚŽǁŶŽŶƚŚĞǁŽƌŬůŝƐƚ͘
;ĐͿdŚĞƉƌŝĐĞĨŽƌ'ƌŝĚWƌƵŶŝŶŐƐŚĂůůďĞďĂƐĞĚŽŶƚŚĞŶƵŵďĞƌŽĨƚƌĞĞƐƉƌƵŶĞĚĂŶĚƚŚĞĨůĂƚƌĂƚĞƵŶŝƚƉƌŝĐĞ ůŝƐƚĞĚŽŶƚŚĞĐŽƐƚƉƌŽƉŽƐĂů͘
;ĚͿhŶŝƚĐŽƐƚƐĨŽƌǁŽƌŬƉĞƌĨŽƌŵĞĚďLJƐĞƌǀŝĐĞƌĞƋƵĞƐƚĚƵƌŝŶŐƌĞŐƵůĂƌǁŽƌŬŝŶŐŚŽƵƌƐƐŚĂůůďĞďĂƐĞĚŽŶ ƚŚĞƵŶŝƚƉƌŝĐĞƐůŝƐƚĞĚŝŶƚŚĞĐŽƐƚƉƌŽƉŽƐĂů͘
;ĞͿtŽƌŬƉĞƌĨŽƌŵĞĚďLJƐĞƌǀŝĐĞƌĞƋƵĞƐƚŽƵƚƐŝĚĞƌĞŐƵůĂƌǁŽƌŬŝŶŐŚŽƵƌƐŽƌǁŽƌŬĨŽƌǁŚŝĐŚŶŽƵŶŝƚĐŽƐƚŝƐ ŐŝǀĞŶƐŚĂůůďĞƉĂŝĚĂƚƚŚĞŚŽƵƌůLJƌĂƚĞ;ƐͿůŝƐƚĞĚŽŶƚŚĞĐŽƐƚƉƌŽƉŽƐĂů͘WĂLJŵĞŶƚǁŝůůďĞŵĂĚĞŽŶůLJĨŽƌ ƉƌŽĚƵĐƚŝǀĞƚŝŵĞŽŶƚŚĞũŽďƐŝƚĞ͘EŽĂůůŽǁĂŶĐĞǁŝůůďĞŵĂĚĞĨŽƌŵŽďŝůŝnjĂƚŝŽŶŽĨĐƌĞǁƐ͕ŵĂƚĞƌŝĂůƐĂŶĚ ĞƋƵŝƉŵĞŶƚƚŽƚŚĞũŽďƐŝƚĞ͘
;ĨͿdŚĞƐŝnjĞŽĨĂůůǁŽŽĚLJƚƌĞĞƐƐŚĂůůďĞĚĞƚĞƌŵŝŶĞĚďLJŵĞĂƐƵƌŝŶŐƚŚĞ,͘dŚŝƐŝƐƚŚĞĚŝĂŵĞƚĞƌŽĨƚŚĞ ƚƌƵŶŬĂƚďƌĞĂƐƚŚĞŝŐŚƚ͕ůŽĐĂƚĞĚĨŽƵƌĂŶĚŽŶĞͲŚĂůĨ;ϰ͘ϱͿĨĞĞƚĂďŽǀĞƚŚĞďĂƐĞŽĨƚŚĞƚƌƵŶŬ͘&ŽƌŵƵůƚŝͲ ƚƌƵŶŬƚƌĞĞƐ͘KƌƚƌĞĞƐƚŚĂƚďƌĂŶĐŚďĞůŽǁĨŽƵƌĂŶĚŽŶĞͲŚĂůĨĨĞĞƚ͕ƚŚĞĚŝĂŵĞƚĞƌŽĨƚŚĞůĂƌŐĞƐƚƚƌƵŶŬĂƚ ĨŽƵƌĂŶĚŽŶĞͲŚĂůĨĨĞĞƚĂďŽǀĞďĂƐĞƐŚĂůůďĞƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞƐŝnjĞ͘ ;ŐͿ,ĞŝŐŚƚƐŚĂůůďĞƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞƐŝnjĞŽĨƚŚĞƉĂůŵƐ͖ĂŶĚŝƐŵĞĂƐƵƌĞƐĨƌŽŵƚŚĞďĂƐĞŽĨƚŚĞƚƌƵŶŬ ƚŽƚŚĞďƵĚŝŶŝƚŝĂƚŝŽŶnjŽŶĞ͘
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ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϭŽĨϰϯ
;ďͿZĞŵŽǀĂůƐĂŶĚWůĂŶƚŝŶŐƐͲdŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌǁŝůůƉƌŽǀŝĚĞĂǁŽƌŬůŝƐƚĐŽŶƐŝƐƚŝŶŐŽĨ ůŽĐĂƚŝŽŶ͕ƚƌĞĞƐƉĞĐŝĞƐ͕ƐŝnjĞ͕ǁŽƌŬƚLJƉĞ͕ƋƵĂŶƚŝƚLJ͕ƵŶŝƚĐŽƐƚƐĂŶĚůƵŵƉƐƵŵĂŵŽƵŶƚƐ͘ ;ĐͿ/ŶƐƉĞĐƚŝŽŶͲdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůŶŽƚŝĨLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌƵƉŽŶĐŽŵƉůĞƚŝŽŶŽĨĞĂĐŚ ǁŽƌŬůŝƐƚĂŶĚƐŚĂůůŶŽƚƉƌŽĐĞƐƐĂŶLJǁŽƌŬůŝƐƚĨŽƌŝŶǀŽŝĐŝŶŐƵŶƚŝůĂůůƐŝƚĞƐŽŶƚŚĞůŝƐƚŚĂǀĞďĞĞŶŝŶƐƉĞĐƚĞĚ ďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͘ůƐŽ͕ĚĂŝůLJ͕ŽƌĂƐƌĞƋƵŝƌĞĚ͘dŚĞŽŶƚƌĂĐƚŽƌŽƌŚŝƐƐƵƉĞƌǀŝƐŽƌ ŵĂLJǁĂůŬƚŚĞƉƌŽũĞĐƚǁŝƚŚƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌĨŽƌĚĞƚĞƌŵŝŶŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ ƐƉĞĐŝĨŝĐĂƚŝŽŶƐŽƌƚŽĚŝƐĐƵƐƐƌĞƋƵŝƌĞĚǁŽƌŬ͘ŶLJƚƌĞĞ;ƐͿ͕ǁŚŝĐŚŝŶƚŚĞŽƉŝŶŝŽŶŽĨƚŚĞWƵďůŝĐtŽƌŬƐ ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌŚĂǀĞŶŽƚďĞĞŶƉƌƵŶĞĚ͕ƌĞŵŽǀĞĚŽƌƉůĂŶƚĞĚĂĐĐŽƌĚŝŶŐƚŽƚŚĞĐŽŶĚŝƚŝŽŶƐŽĨƚŚĞ ƐƉĞĐŝĨŝĐĂƚŝŽŶƐƐĞƚĨŽƌƚŚŚĞƌĞŝŶƐŚĂůůďĞďƌŽƵŐŚƚƚŽƚŚĞĂƚƚĞŶƚŝŽŶŽĨƚŚĞŽŶƚƌĂĐƚŽƌĂŶĚ͕ŝĨŶŽƚ ĐŽƌƌĞĐƚĞĚ͕ƉĂLJŵĞŶƚƚŽƚŚĞŽŶƚƌĂĐƚŽƌǁŝůůŶŽƚďĞŵĂĚĞƵŶƚŝůƚŚĞĐŽŶĚŝƚŝŽŶŝƐĐŽƌƌĞĐƚĞĚ͘
;ĚͿ^ĞƌǀŝĐĞZĞƋƵĞƐƚƐĂŶĚ>ŽĐĂƚŝŽŶ>ŝƐƚƐͲdŚĞŽŶƚƌĂĐƚŽƌĐŽƵůĚďĞŐŝǀĞŶĂĚĚŝƚŝŽŶĂůƐĞƌǀŝĐĞƌĞƋƵĞƐƚƐĂŶĚ ůŽĐĂƚŝŽŶůŝƐƚƐĞĂĐŚĚĂLJ͕ŝŶĂĚĚŝƚŝŽŶƚŽƚŚĞǁĞĞŬůLJŽƌŐƌŝĚƐĐŚĞĚƵůĞůŝƐƚ͘dŚŝƐǁŽƌŬǁŝůůďĞĐŽŶƐŝĚĞƌĞĚ ĂƐŶŽƌŵĂůǁŽƌŬĂŶĚŶŽƚƐƵďũĞĐƚƚŽĞŵĞƌŐĞŶĐLJǁŽƌŬĐŽƐƚŽƌĐƌĞǁƌĞŶƚĂůĐŽƐƚƐ͘
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dZKE/dZ
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ůĞĐƚƌŽŶŝĐdƌĞĞ/ŶǀĞŶƚŽƌLJ^LJƐƚĞŵ͖ĂŶĚƵƉŽŶĐŽŵƉůĞƚŝŽŶ͕ŐŝǀĞŶ ƚŽƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌĂůŽŶŐǁŝƚŚƚŚĞǁŽƌŬůŝƐƚ͘ ĂĐŚĨŝĞůĚŽŶƚŚĞŝŶǀĞŶƚŽƌLJƐŚĞĞƚƐŚŽƵůĚďĞĨŝůůĞĚ
ŝŶĂƐĨŽůůŽǁƐ͗
;ĂͿZŝŐŚƚŽĨtĂLJʹdŚŝƐŝƐƚŚĞƉƵďůŝĐƌŝŐŚƚŽĨǁĂLJ;ĂŶĚͬŽƌƚƌĞĞŵĂŝŶƚĞŶĂŶĐĞĞĂƐĞŵĞŶƚͿĂƐƌĞĐŽƌĚĞĚŝŶ ƚŚĞĚĞǀĞůŽƉŵĞŶƚƉůĂŶƐ͘dŚĞŵĞĂƐƵƌĞŵĞŶƚǁŝůůďĞƚŚĞǁŝĚƚŚŽĨƚŚĞƉĂƌŬǁĂLJ͕ŽƌŝŶĂƌĞĂƐŝŶǁŚŝĐŚ ƚŚĞƌĞŝƐŶŽƉĂƌŬǁĂLJ͕ƚŚĞĚĞƐŝŐŶĂƚĞĚĨŽŽƚĂŐĞďĞŐŝŶŶŝŶŐĨƌŽŵƚŚĞĐƵƌďĨĂĐĞ͘
;ďͿĚĚƌĞƐƐʹŽŶƐŝƐƚƐŽĨƚŚĞŚŽƵƐĞŶƵŵďĞƌĂŶĚĐŽŵƉůĞƚĞƐƚƌĞĞƚŶĂŵĞ͘/ĨƚŚĞƚƌĞĞŝƐŽŶƚŚĞƐŝĚĞŽĨĂ ĐŽƌŶĞƌŚŽƵƐĞ͕ƚŚĞŶĂŵĞŽĨƚŚĞŝŶƚĞƌƐĞĐƚŝŶŐƐƚƌĞĞƚƐŚĂůůďĞŝŶĐůƵĚĞĚ͘
;ĐͿ^ŝƚĞʹŽƵŶƚĞĚƐĞƋƵĞŶƚŝĂůůLJĨƌŽŵŶŽƌƚŚƚŽƐŽƵƚŚĂŶĚĨƌŽŵǁĞƐƚƚŽĞĂƐƚ͘dƌĞĞƐŝŶĨƌŽŶƚŽĨƚŚĞ ƌĞƐŝĚĞŶĐĞŚĂǀĞĂŶ͞&͟ĚĞƐŝŐŶĂƚŝŽŶ͖ĐŽƌŶĞƌŚŽƵƐĞƐǁŝƚŚƚƌĞĞƐŽŶƚŚĞƐŝĚĞŚĂǀĞĂ͞^͟ĚĞƐŝŐŶĂƚŝŽŶ͘
;ĚͿ^ƉĞĐŝĞƐʹ/ŶĐůƵĚŝŶŐŚLJďƌŝĚƐ͕ǀĂƌŝĞƚŝĞƐĂŶĚĐƵůƚŝǀĂƌƐ͘
;ĞͿŝĂŵĞƚĞƌĂƚƌĞĂƐƚ,ĞŝŐŚƚ;,ͿʹdŚĞŵĞĂƐƵƌĞŵĞŶƚŽĨƚŚĞƚƌƵŶŬĚŝĂŵĞƚĞƌĂƚϰ͘ϱĨĞĞƚĨƌŽŵƚŚĞ ďĂƐĞ͕ĂƐĚĞƐĐƌŝďĞĚŝŶƐĞĐƚŝŽŶϰ͘ϭϮ;ĨͿ͘DƵůƚŝͲƚƌƵŶŬƚƌĞĞƐƐŚĂůůďĞƌĞĐŽƌĚĞĚďLJƵƐŝŶŐƚŚĞ,ŽĨƚŚĞ ůĂƌŐĞƐƚƚƌƵŶŬĨŽůůŽǁĞĚďLJƚŚĞůĞƚƚĞƌDĂŶĚƚŚĞƚŽƚĂůĂŵŽƵŶƚŽĨƚŚĞƚƌƵŶŬƐ͘&ŽƌĞdžĂŵƉůĞ͕ĂŵƵůƚŝͲ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
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ƚƌƵŶŬƚƌĞĞŚĂǀŝŶŐƚŚƌĞĞƚƌƵŶŬƐ͕ǁŝƚŚƚŚĞůĂƌŐĞƐƚƚƌƵŶŬŵĞĂƐƵƌŝŶŐƚǁĞŶƚLJͲĨŽƵƌŝŶĐŚĞƐ͕ǁŽƵůĚďĞ ǁƌŝƚƚĞŶĂƐ͙ϮϰDϯ͘
;ĨͿ,ĞŝŐŚƚʹ/ŶƚƌĞĞƐ͕ŵĞĂƐƵƌĞĚĨƌŽŵďĂƐĞƚŽƵƉƉĞƌŵŽƐƚďƌĂŶĐŚĞƐ͘,ĞŝŐŚƚŝŶƉĂůŵƐƐŚĂůůďĞŵĞĂƐƵƌĞĚ ĨƌŽŵďĂƐĞƚŽůŽǁĞƌƉŽƌƚŝŽŶŽĨďƵĚ͘
;ŐͿ^ƉƌĞĂĚʹdŚĞŚŽƌŝnjŽŶƚĂůŵĞĂƐƵƌĞŵĞŶƚŽĨƚŚĞĐĂŶŽƉLJ͕ĨƌŽŵĞŶĚƚŽĞŶĚ͘
;ŚͿŽŶĚŝƚŝŽŶʹdŚĞĐŽŶƚƌĂĐƚŽƌƐŚĂůůĚĞƐĐƌŝďĞƚŚĞƚƌĞĞ͛ƐŐĞŶĞƌĂůĐŽŶĚŝƚŝŽŶďLJƉůĂĐŝŶŐĂŶyŝŶĞŝƚŚĞƌƚŚĞ ŐŽŽĚ͕ĨĂŝƌ͕ŽƌƉŽŽƌĐŽůƵŵŶ͘dŚĞĚĞƐĐƌŝƉƚŝŽŶƐŚŽƵůĚďĞďĂƐĞĚƉƌŝŵĂƌŝůLJŽŶƚŚĞůĞǀĞůŽĨĚĞĐĂLJƚŚĂƚŝƐ ƉƌĞƐĞŶƚ͕ŝŵƉŽƌƚĂŶƚůŝŵďƐƚŚĂƚŵĂLJďĞŵŝƐƐŝŶŐ͕ƚŚĞƋƵĂůŝƚLJŽĨďƌĂŶĐŚĂƚƚĂĐŚŵĞŶƚƐ͕ĂŶLJƌŽŽƚŝƐƐƵĞƐ ƚŚĂƚĂƌĞĚĞƚĞĐƚĞĚ͘KǀĞƌĂůůďĂůĂŶĐĞƐŚŽƵůĚďĞŽďƐĞƌǀĞĚĂůƐŽ͘DĂũŽƌĐŽŶĐĞƌŶƐƐŚŽƵůĚďĞŶŽƚĞĚŝŶƚŚĞ ƌĞŵĂƌŬ͛ƐĐŽůƵŵŶ͘
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ŵĞƌŐĞŶĐLJƌĞƐƉŽŶƐĞǁŽƌŬǁŝůůŶŽƚďĞƉĞƌĨŽƌŵĞĚǁŝƚŚŽƵƚƉƌŝŽƌĂƉƉƌŽǀĂůďLJƚŚĞWƵďůŝĐtŽƌŬ^ĞƌǀŝĐĞƐ ŝƌĞĐƚŽƌƵŶůĞƐƐĂĐŽŶĚŝƚŝŽŶĞdžŝƐƚƐǁŚĞƌĞŝŶŝƚĂƉƉĞĂƌƐƚŚĞƌĞŝƐĂĚĂŶŐĞƌŽĨŝŶũƵƌLJƚŽƉĞƌƐŽŶƐŽƌ ƉƌŽƉĞƌƚLJ͘
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;ĐͿdŚĞŝƚLJƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽĐĂƵƐĞĂŶLJĞŵĞƌŐĞŶĐLJƌĞƐƉŽŶƐĞǁŽƌŬĚĞĞŵĞĚŶĞĐĞƐƐĂƌLJďLJƚŚĞWƵďůŝĐ tŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌƚŽďĞƉĞƌĨŽƌŵĞĚďLJƚŚĞŝƚLJĐƌĞǁƐ͕ŽƚŚĞƌĐŽŶƚƌĂĐƚŽƌƐ͕ŽƌĚĂLJůĂďŽƌ͕ĂƚŶŽ ĐŽƐƚƚŽƚŚĞŽŶƚƌĂĐƚŽƌ͘
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ŵĞƌŐĞŶĐLJƌĞƐƉŽŶƐĞǁŽƌŬŝƐǁŽƌŬƉĞƌĨŽƌŵĞĚĂĨƚĞƌŶŽƌŵĂůǁŽƌŬŝŶŐŚŽƵƌƐŽƌĂŶLJƚŝŵĞĚƵƌŝŶŐĂϮϰͲ ŚŽƵƌƉĞƌŝŽĚƚŚĂƚƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌĚĞĞŵƐĂŶĞŵĞƌŐĞŶĐLJ͘ ŵĞƌŐĞŶĐLJƌĞƐƉŽŶƐĞ
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;ĂͿdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůŽďĞLJĂŶĚĂĚŚĞƌĞƚŽĂůK^,ƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌǁŽƌŬĞƌƐĂĨĞƚLJ͕ĂŶĚE^/ϭϯϯ͘ϭ ^ĂĨĞƚLJZĞƋƵŝƌĞŵĞŶƚƐ͘
;ďͿŶLJƉĞƌƐŽŶǁŽƌŬŝŶŐŝŶƉƌŽdžŝŵŝƚLJƚŽĞůĞĐƚƌŝĐĂůĐŽŶĚƵĐƚŽƌƐƐŚĂůůďĞƉƌŽƉĞƌůLJƚƌĂŝŶĞĚŝŶĞůĞĐƚƌŝĐĂů ŚĂnjĂƌĚƌĞĐŽŐŶŝƚŝŽŶĂŶĚĂǀŽŝĚĂŶĐĞ͕ĂŶĚƉŽƐƐĞƐƐƚŚĞĂƉƉƌŽƉƌŝĂƚĞƋƵĂůŝĨŝĐĂƚŝŽŶƐƌĞƋƵŝƌĞĚďLJƚŚĞ^ƚĂƚĞ ŽĨĂůŝĨŽƌŶŝĂ͘
;ĐͿŶLJĚĞĂĚƚƌĞĞ͕ƚƌĞĞǁŝƚŚĞdžĐĞƐƐŝǀĞĚĞĐĂLJ͕ŽƌƚƌĞĞǁŝƚŚĂƐƵďƐƚĂŶƚŝĂůĚĞĨĞĐƚƐƵĐŚĂƐĂƐƉůŝƚ͕ĐƌĂĐŬ͕Žƌ ƵŶƐƚĂďůĞƌŽŽƚƐLJƐƚĞŵ͕ƐŚĂůůďĞƌĞƉŽƌƚĞĚŝŵŵĞĚŝĂƚĞůLJƚŽƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͘ ;ĚͿdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉŽƐƚƉŽŶĞĂŶLJƚƌĞĞŵĂŝŶƚĞŶĂŶĐĞĂĐƚŝǀŝƚLJǁŚĞƌĞŝŶĂǀĞŚŝĐůĞŝƐŝŶƉƌŽdžŝŵŝƚLJĂŶĚ ƐƵĐŚĂĐƚŝǀŝƚLJŚĂƐƚŚĞůŝŬĞůŝŚŽŽĚŽĨĐĂƵƐŝŶŐĚĂŵĂŐĞƚŽǀĞŚŝĐůĞ͘/ŶƐƵĐŚŝŶƐƚĂŶĐĞƐ͕ŝƚŝƐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJ ŽĨƚŚĞŽŶƚƌĂĐƚŽƌƚŽŝŵŵĞĚŝĂƚĞůLJŶŽƚŝĨLJƚŚĞǀĞŚŝĐůĞŽǁŶĞƌĂŶĚƌĞƋƵĞƐƚƚŽŚĂǀĞƚŚĞǀĞŚŝĐůĞŵŽǀĞĚ ƚŽĂƐĂĨĞůŽĐĂƚŝŽŶ͘ŶLJĂďĂŶĚŽŶĞĚǀĞŚŝĐůĞƐŚĂůůďĞƌĞƉŽƌƚĞĚƚŽƚŚĞZĂŶĐŚŽƵĐĂŵŽŶŐĂWŽůŝĐĞĞƉƚ͘
WZ
^
Zsd/KEK&WZKW
Zdz
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϰŽĨϰϯ
;ĂͿdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůĐĂƌĞĨƵůůLJƉƌŽƚĞĐƚĨƌŽŵĚĂŵĂŐĞĂůůƚƌĞĞƐ͕ƐŚƌƵďƐ͕ŐƌŽƵŶĚĐŽǀĞƌƐ͕ƚƵƌĨ ŝƌƌŝŐĂƚŝŽŶ͕ǁĂƚĞƌƐĞƌǀŝĐĞ͕ĨĞŶĐĞƐ͕ƐŝĚĞǁĂůŬ͕ďƵŝůĚŝŶŐƐ͕ĂƵƚŽŵŽďŝůĞƐ͕ƐƚƌĞĞƚůŝŐŚƚƐ͕ƐƚƌĞĞƚƐŝŐŶƐ͕ŽƌĂŶLJ ŽƚŚĞƌĨĂĐŝůŝƚŝĞƐůŽĐĂƚĞĚŽŶŽƌĂĚũĂĐĞŶƚƚŽƚŚĞũŽďƐŝƚĞ͘ ;ďͿ^ŚŽƵůĚĂŶLJĚŝƌĞĐƚŽƌŝŶĚŝƌĞĐƚĚĂŵĂŐĞŽƌŝŶũƵƌLJƌĞƐƵůƚƚŽĂŶLJƉƵďůŝĐŽƌƉƌŝǀĂƚĞƉƌŽƉĞƌƚLJďLJŽƌďĞĐĂƵƐĞ ŽĨĂŶLJĂĐƚ͕ŽŵŝƐƐŝŽŶ͕ŶĞŐůĞĐƚŽƌŵŝƐĐŽŶĚƵĐƚŝŶƚŚĞĞdžĞĐƵƚŝŽŶŽĨǁŽƌŬ͕ŽŶƚŚĞƉĂƌƚŽĨƚŚĞŽŶƚƌĂĐƚŽƌ ŽƌƚŚĞŽŶƚƌĂĐƚŽƌ͛ƐĞŵƉůŽLJĞĞƐ͕ƐƵĐŚƉƌŽƉĞƌƚLJƐŚĂůůďĞƌĞƐƚŽƌĞĚďLJƚŚĞŽŶƚƌĂĐƚŽƌ͕ƚŽĂĐŽŶĚŝƚŝŽŶ ĞƋƵŝǀĂůĞŶƚƚŽƚŚĂƚĞdžŝƐƚŝŶŐďĞĨŽƌĞĚĂŵĂŐĞŽĐĐƵƌƌĞĚ͘
;ĐͿdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞĐŽŵƉůĞƚĞƌĞŵŽǀĂůĂŶĚƌĞƉůĂĐĞŵĞŶƚŽĨƚƌĞĞƐůŽƐƚĚƵĞƚŽ ƚŚĞŽŶƚƌĂĐƚŽƌ͛ƐĨĂƵůƚLJŵĂŝŶƚĞŶĂŶĐĞŽƌŶĞŐůŝŐĞŶĐĞ͕ĂƐĚĞƚĞƌŵŝŶĞĚďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐ ŝƌĞĐƚŽƌ͘ZĞƉůĂĐĞŵĞŶƚƐŚĂůůďĞŵĂĚĞďLJƚŚĞŽŶƚƌĂĐƚŽƌŝŶƚŚĞŬŝŶĚĂŶĚƐŝnjĞŽĨƚƌĞĞƐĂƐĚĞƚĞƌŵŝŶĞĚ ďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͘tŚĞƌĞƚŚĞƌĞŝƐĂĚŝĨĨĞƌĞŶĐĞŝŶǀĂůƵĞďĞƚǁĞĞŶƚŚĞƚƌĞĞƐůŽƐƚ ĂŶĚƚŚĞƌĞƉůĂĐĞŵĞŶƚŽĨƚƌĞĞƐ͕ƚŚŝƐĚŝĨĨĞƌĞŶĐĞǁŝůůďĞĚĞĚƵĐƚĞĚĨƌŽŵƚŚĞĐŽŶƚƌĂĐƚƉĂLJŵĞŶƚ͘/ŶĂůů ĐĂƐĞƐ͕ƚŚĞǀĂůƵĞŽĨƚŚĞƚƌĞĞƐůŽƐƚǁŝůůďĞĚĞƚĞƌŵŝŶĞĚďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͕ƵƐŝŶŐƚŚĞ ůĂƚĞƐƚŽƵŶĐŝůŽĨdƌĞĞĂŶĚ>ĂŶĚƐĐĂƉĞƉƉƌĂŝƐĞƌƐʹ'ƵŝĚĞĨŽƌWůĂŶƚƉƉƌĂŝƐĂů͘
WZ
^
Zsd/KEK&t/>>/&
ZĞĂƐŽŶĂďůĞĞĨĨŽƌƚƐƐŚĂůůďĞƚĂŬĞŶƚŽƉƌŽƚĞĐƚĂŶĚƉƌĞƐĞƌǀĞƚŚĞŶĞƐƚƐ͕ŽƌŶĞƐƚŝŶŐĐĂǀŝƚŝĞƐ͕ŽĨďĞŶĞĨŝĐŝĂůďŝƌĚƐĂŶĚ ŽƚŚĞƌďĞŶĞĨŝĐŝĂůĂŶŝŵĂůƐ͕ƵŶůĞƐƐŝŶͲƐŽĚŽŝŶŐǁŽƵůĚĐƌĞĂƚĞĂŚĂnjĂƌĚŽƵƐĐŽŶĚŝƚŝŽŶ͘
Yh>/dzK&tKZ
ŶLJŵŽŶŽĐŽƚŽƌĚŝĐŽƚƐƉĞĐŝĞƐƚŚĂƚŝƐŬŶŽǁŶƚŽƚƌĂŶƐŵŝƚĂŶŝŶĨĞĐƚŝŽƵƐĚŝƐĞĂƐĞƉƌĞǀĂůĞŶƚŝŶƚŚĞůĂŶĚƐĐĂƉĞƐŚĂůů ďĞƉƌƵŶĞĚǁŝƚŚŚĂŶĚƐĂǁƐ͕ƉŽůĞƐĂǁƐŽƌƌĞĐŝƉƌŽĐĂƚŝŶŐƐĂǁƐŽŶůLJ͘WƌŝŽƌƚŽƉƌƵŶŝŶŐ͕ĂůůƐĂǁďůĂĚĞƐŵƵƐƚďĞ ƐƚĞƌŝůŝnjĞĚďLJĂƚĞŶ;ϭϬͿŵŝŶƵƚĞŝŵŵĞƌƐŝŽŶŝŶĂďƵĐŬĞƚŽĨǁĂƚĞƌĐŽŶƚĂŝŶŝŶŐƚǁĞŶƚLJͲĨŝǀĞ;ϮϱͿƉĞƌĐĞŶƚĐŚůŽƌŝŶĞ ďůĞĂĐŚ͘ĨƌĞƐŚƐŽůƵƚŝŽŶƐŚĂůůďĞŵŝdžĞĚĚĂŝůLJ͘
ĂĐŚƚƌĞĞƐŚĂůůďĞƉƌƵŶĞĚƵƚŝůŝnjŝŶŐĂďůĂĚĞƚŚĂƚŚĂƐďĞĞŶƐƚĞƌŝůŝnjĞĚ ŝŶƚŚŝƐĨĂƐŚŝŽŶ͕ƚŚĞƌĞďLJƉƌĞǀĞŶƚŝŶŐƚƌĞĞͲƚŽͲƚƌĞĞĚŝƐĞĂƐĞƚƌĂŶƐŵŝƐƐŝŽŶǀŝĂƚŚĞƐĂǁďůĂĚĞ͘ĨƚĞƌĂƚƌĞĞŚĂƐďĞĞŶ ƉƌƵŶĞĚ͕ƚŚĞƐĂǁďůĂĚĞƐŚĂůůŶŽƚďĞƵƚŝůŝnjĞĚĂŐĂŝŶƵŶƚŝůŝƚŚĂƐďĞĞŶƐƚĞƌŝůŝnjĞĚďLJƚŚĞƚĞŶ;ϭϬͿŵŝŶƵƚĞŝŵŵĞƌƐŝŽŶ ŵĞƚŚŽĚĚĞƐĐƌŝďĞĚĂďŽǀĞ͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϱŽĨϰϯ
Z
W>
D
EdK&>E^W
Dd
Z/>^Θ/dzWZKW
Zdz
dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƌĞƉůĂĐĞŵĞŶƚŽĨŝƚLJƉƌŽƉĞƌƚLJ͕ƉƌŝǀĂƚĞƉƌŽƉĞƌƚLJĂŶĚĂŶLJŽƚŚĞƌŝƚĞŵƐ ĚĞĞŵĞĚŶĞĐĞƐƐĂƌLJĚƵĞƚŽĐŽŶƚƌĂĐƚŽƌŶĞŐůŝŐĞŶĐĞ͘
KE&KZD/E'dK^dd
E&
Z>'h/
>/E
^&KZ^dKZDtd
ZWK>>hd/KEWZ
s
Ed/KE
^ƚĂƚĞĂŶĚ&ĞĚĞƌĂůŐƵŝĚĞůŝŶĞƐĨŽƌƐƚŽƌŵǁĂƚĞƌƉŽůůƵƚŝŽŶƉƌĞǀĞŶƚŝŽŶĂƌĞŬŶŽǁŶĂƐĞƐƚDĂŶĂŐĞŵĞŶƚWƌĂĐƚŝĐĞƐ ;DW͛ƐͿ͘dŚĞƐĞƉƌĂĐƚŝĐĞƐǁŝůůŚĞůƉƌĞĚƵĐĞŐƌŽƵŶĚǁĂƚĞƌĐŽŶƚĂŵŝŶĂƚŝŽŶĂŶĚƉŽůůƵƚŝŽŶƚŽŽƵƌǁĞƚůĂŶĚƐ͕ďĞĂĐŚĞƐ͕ ĂŶĚĐŽĂƐƚůŝŶĞƐ͘^ŝŶĐĞ>ĂŶĚƐĐĂƉŝŶŐĐĂŶĂŶĚĚŽĞƐĐŽŶƚƌŝďƵƚĞƚŽƐƚŽƌŵǁĂƚĞƌƉŽůůƵƚŝŽŶ͕DWŐƵŝĚĞůŝŶĞƐƚĂŬĞŶ ĨƌŽŵƚŚĞĂůŝĨŽƌŶŝĂ^ƚŽƌŵtĂƚĞƌYƵĂůŝƚLJƐƐŽĐŝĂƚŝŽŶ͛Ɛ,ĂŶĚŬĂƌĞƉƌŽǀŝĚĞĚĨŽƌƚŚĞŽŶƚƌĂĐƚŽƌ͛ƐƌĞĨĞƌĞŶĐĞ͘ /ŶĂĚĚŝƚŝŽŶ͕ƚŚĞƐĞDW͛ƐƐŚĂůůďĞƌĞǀŝĞǁĞĚǁŝƚŚĂŶLJŶĞǁĞŵƉůŽLJĞĞďĞĨŽƌĞŚĞďĞŐŝŶƐǁŽƌŬŝŶƚŚĞĨŝĞůĚ͕ĂŶĚǁŝƚŚ ĂůůĐƌĞǁƐŽŶĂƚůĞĂƐƚĂŶĂŶŶƵĂůďĂƐŝƐ͘;^ĞĞƉƉĞŶĚŝdžͿ
W
ZD/d^
WƌŝŽƌƚŽƚŚĞƐƚĂƌƚŽĨĂŶLJǁŽƌŬ͕ƚŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůŽďƚĂŝŶƚŚĞĂƉƉůŝĐĂďůĞŝƚLJƉĞƌŵŝƚƐĂŶĚƉůĂŶĨŽƌŝƚLJ ŝŶƐƉĞĐƚŝŽŶƐ͘ dŚĞ ŝƚLJ ǁŝůů ŝƐƐƵĞ ƚŚĞ ƉĞƌŵŝƚƐ Ăƚ ŶŽ ĐŚĂƌŐĞ ƚŽ ƚŚĞ ŽŶƚƌĂĐƚŽƌ͘ dŚĞ ŽŶƚƌĂĐƚŽƌ ĂŶĚ Ăůů ƐƵďĐŽŶƚƌĂĐƚŽƌƐƐŚĂůůĞĂĐŚŽďƚĂŝŶĂŝƚLJďƵƐŝŶĞƐƐůŝĐĞŶƐĞĂŶĚƐŚĂůůďĞůŝĐĞŶƐĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƚĂƚĞƵƐŝŶĞƐƐ ĂŶĚWƌŽĨĞƐƐŝŽŶƐŽĚĞ͘dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůĂůƐŽŽďƚĂŝŶĂůůŽƚŚĞƌƉĞƌŵŝƚƐ͕ůŝĐĞŶƐĞƐ͕ŝŶƐƉĞĐƚŝŽŶƐ͕ĐĞƌƚŝĨŝĐĂƚĞƐ͕Žƌ ĂƵƚŚŽƌŝnjĂƚŝŽŶƐƌĞƋƵŝƌĞĚďLJĂŶLJŐŽǀĞƌŶŝŶŐďŽĚLJŽƌĞŶƚŝƚLJ͘
tKZ
ϰ͘Ϯϵ͘ϭdZ&&/KEdZK>W
ZD/d
dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌĞƉĂƌĞĂƉĞƌŵŝƚĂƉƉůŝĐĂƚŝŽŶĨŽƌƐƚƌĞĞƚĐůŽƐƵƌĞĂŶĚƐŚĂůůĂƚƚĂĐŚƚǁŽĐŽƉŝĞƐŽĨƚŚĞƉƌŽƉŽƐĞĚ ƚƌĂĨĨŝĐ ĐŽŶƚƌŽů ƐŝŐŶŝŶŐ͕ ďĂƌƌŝĐĂĚŝŶŐ ĂŶĚͬŽƌ ĚĞƚŽƵƌ ƌŽƵƚŝŶŐ͘ dŚĞ ƉĞƌŵŝƚ ĂƉƉůŝĐĂƚŝŽŶ ĂŶĚ ĂĐĐŽŵƉĂŶLJŝŶŐ ĂƚƚĂĐŚŵĞŶƚƐƐŚĂůůďĞƌĞǀŝĞǁĞĚďLJƚŚĞŝƚLJdƌĂĨĨŝĐ
ŶŐŝŶĞĞƌ͘hƉŽŶƚŚĞdƌĂĨĨŝĐ
ŶŐŝŶĞĞƌΖƐĂƉƉƌŽǀĂů͕ĂŶŽͲĨĞĞ^ƚƌĞĞƚ
ůŽƐƵƌĞWĞƌŵŝƚƐŚĂůůďĞŝƐƐƵĞĚ͘EŽ^ƚƌĞĞƚůŽƐƵƌĞ͕>ĂŶĞůŽƐƵƌĞ͕ĞƚŽƵƌŽƌŽƚŚĞƌǁŽƌŬƌĞƋƵŝƌŝŶŐƚƌĂĨĨŝĐĐŽŶƚƌŽů ƐŚĂůůĐŽŵŵĞŶĐĞƉƌŝŽƌƚŽŝƐƐƵĂŶĐĞŽĨƐĂŝĚƉĞƌŵŝƚ͘
ϰ͘Ϯϵ͘Ϯ^/'E^͕ZZ/
^͕E
>/E
dKZ^
dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌŽǀŝĚĞĂŶĚŝŶƐƚĂůůďĂƌƌŝĐĂĚĞƐ͕ĚĞůŝŶĞĂƚŽƌƐ͕ǁĂƌŶŝŶŐĚĞǀŝĐĞƐĂŶĚĐŽŶƐƚƌƵĐƚŝŽŶƐŝŐŶƐŝŶ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĐƵƌƌĞŶƚĂůŝĨŽƌŶŝĂ:ŽŝŶƚhƚŝůŝƚLJdƌĂĨĨŝĐŽŶƚƌŽůDĂŶƵĂů;:hdDͿƉƵďůŝƐŚĞĚďLJƚŚĞĂůŝĨŽƌŶŝĂ /ŶƚĞƌͲhƚŝůŝƚLJŽŽƌĚŝŶĂƚŝŶŐŽŵŵŝƚƚĞĞ͕ƚŚĞtŽƌŬƌĞĂdƌĂĨĨŝĐŽŶƚƌŽů,ĂŶĚŬ;td,ͿĂŶĚƚŚĞĐƵƌƌĞŶƚ ĂůƚƌĂŶƐDĂŶƵĂůŽĨdƌĂĨĨŝĐŽŶƚƌŽůƐĨŽƌŽŶƐƚƌƵĐƚŝŽŶĂŶĚDĂŝŶƚĞ ŶĂŶĐĞtŽƌŬŽŶĞƐƵŶůĞƐƐŽƚŚĞƌǁŝƐĞĂƉƉƌŽǀĞĚ ďLJƚŚĞ
ŶŐŝŶĞĞƌ͘ƵƌŝŶŐĂĚǀĞƌƐĞǁĞĂƚŚĞƌŽƌƵŶƵƐƵĂůƚƌĂĨĨŝĐŽƌǁŽƌŬŝŶŐĐŽŶĚŝƚŝŽŶƐĂĚĚŝƚŝŽŶĂůƚƌĂĨĨŝĐĚĞǀŝĐĞƐ ƐŚĂůůďĞƉůĂĐĞĚĂƐĚŝƌĞĐƚĞĚďLJƚŚĞ
ŶŐŝŶĞĞƌ͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϲŽĨϰϯ
ϰ͘Ϯϵ͘ϯdZ/E/E'
hƉŽŶĂǁĂƌĚŽĨƚŚĞĐŽŶƚƌĂĐƚĂŶĚďĞĨŽƌĞǁŽƌŬĐĂŶďĞŐŝŶǁŝƚŚŝŶƚŚĞƉƵďůŝĐƌŝŐŚƚͲŽĨͲǁĂLJ͕ƚŚĞĐŽŶƚƌĂĐƚŽƌƐŚĂůů ƉƌŽǀŝĚĞǁƌŝƚƚĞŶƉƌŽŽĨŽĨǁŽƌŬnjŽŶĞƐĂĨĞƚLJƚƌĂŝŶŝŶŐŽĨĂůůƐƵƉĞƌǀŝƐŽƌLJƐƚĂĨĨ͘dŚĞĐŽŶƚƌĂĐƚŽƌǁŝůůďĞƌĞƐƉŽŶƐŝďůĞ ĨŽƌĂůůǁŽƌŬnjŽŶĞƐĂĨĞƚLJŝŶƐƉĞĐƚŝŽŶƐĂŶĚƌĞŐƵůĂƌƚƌĂŝŶŝŶŐŽĨĂůůƐƚĂĨĨƐĞƚƚŝŶŐƵƉĂŶLJƚƌĂĨĨŝĐĐŽŶƚƌŽů͘
WZhE/E'ʹ'
E
Z>Z
Yh/Z
D
Ed^
;ĂͿWƌƵŶŝŶŐƐŚĂůůďĞŝŶƐƚƌŝĐƚĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂůůƐƚĂŶĚĂƌĚƐĂŶĚŵĞƚŚŽĚƐĂƐƉƌĞƐĐƌŝďĞĚďLJƚŚĞ /ŶƚĞƌŶĂƚŝŽŶĂů^ŽĐŝĞƚLJŽĨƌďŽƌŝĐƵůƚƵƌĞ;ƉƉĞŶĚŝdžͿ͘ ;ďͿdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌƵŶĞƚŽƌĞƚĂŝŶƚŚĞŶĂƚƵƌĂůƐƚƌƵĐƚƵƌĞŽĨĞĂĐŚƚƌĞĞƐƉĞĐŝĞƐ͕ƵŶůĞƐƐŽƚŚĞƌǁŝƐĞ ĚŝƌĞĐƚĞĚďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͕ĂŶĚŚĂǀĞƚŚĞŬŶŽǁůĞĚŐĞĂŶĚĂďŝůŝƚLJƚŽĚĞƚĞƌŵŝŶĞ ĞĂĐŚƚƌĞĞƐƉĞĐŝĞƐƌĞƐƉŽŶƐĞƚŽƉƌƵŶŝŶŐ͘ WƌƵŶŝŶŐƉĂƚƚĞƌŶƐ ƐŚĂůůďĞĐŽŶƐŝƐƚĞŶƚƐŽ ƚŚĂƚǀŝƐƵĂů ĐŽŶƚŝŶƵŝƚLJŝƐŵĂŝŶƚĂŝŶĞĚ͕ĂŶĚƚŚĞǀĂůƵĞŽĨĂůůŝƚLJƚƌĞĞƐƉƌƵŶĞĚŝƐŝŶĐƌĞĂƐĞĚ͘ ;ĐͿdŚĞƵƐĞŽĨĐŚĂŝŶƐĂǁƐƐŚĂůůďĞƌĞƐƚƌŝĐƚĞĚƚŽƚŚŽƐĞĐƵƚƐƚŚĂƚĐĂŶŶŽƚďĞŵĂĚĞǁŝƚŚŚLJĚƌĂƵůŝĐ͕ ƉŶĞƵŵĂƚŝĐ͕ŽƌŵĂŶƵĂůůLJŽƉĞƌĂƚĞĚůŽƉƉŝŶŐƐŚĞĂƌƐ͘ůůďůĂĚĞƐ͕ĐŚĂŝŶƐĂŶĚŽƚŚĞƌĐƵƚƚŝŶŐĚĞǀŝĐĞƐ ƐŚĂůůďĞŬĞƉƚƐŚĂƌƉĞŶĞĚ͕ƚŽŵĂŬĞĂĐůĞĂŶĨŝŶĂůĐƵƚ͕ǁŝƚŚƚŚĞďĂƌŬŝŶƚĂĐƚĂŶĚĨƌĞĞĨƌŽŵƐƚƌŝƉƉŝŶŐ ŽƌƐŚƌĞĚĚŝŶŐ͘tŽƵŶĚĚƌĞƐƐŝŶŐƐĂƌĞŶŽƚƉĞƌŵŝƚƚĞĚ͘
;ĚͿWƌƵŶŝŶŐĐƵƚƐƐŚĂůůďĞŵĂĚĞĐĂƌĞĨƵůůLJĂŶĚĂƚƚŚĞƉƌŽƉĞƌůŽĐĂƚŝŽŶ͖ƚŚŝƐǁŝůůďĞďĂĐŬƚŽƚŚĞƉĂƌĞŶƚ ďƌĂŶĐŚŽƌƚƌƵŶŬ͕ũƵƐƚƚŽƚŚĞŽƵƚƐŝĚĞŽĨƚŚĞďƌĂŶĐŚĐŽůůĂƌĂŶĚďƌĂŶĐŚďĂƌŬƌŝĚŐĞ͘ ;ĞͿƌĂŶĐŚĐƵƚƐƐŚĂůůďĞŬĞƉƚĂƐƐŵĂůůĂƐƉŽƐƐŝďůĞƚŽƉƌĞǀĞŶƚĞdžĐĞƐƐŝǀĞĚĞĐĂLJ͘EŽůŝǀĞďƌĂŶĐŚŐƌĞĂƚĞƌ ƚŚĂŶĞŝŐŚƚ;ϴͿŝŶĐŚĞƐŝŶĚŝĂŵĞƚĞƌ;ŵĞĂƐƵƌĞĚĂƚƚŚĞďĂƐĞŽĨƚŚĞďƌĂŶĐŚͿƐŚĂůůďĞƌĞŵŽǀĞĚǁŝƚŚŽƵƚ ĂƵƚŚŽƌŝnjĂƚŝŽŶĨƌŽŵƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͕ƵŶůĞƐƐƐĂŝĚďƌĂŶĐŚŝƐǁĞĂŬůLJĂƚƚĂĐŚĞĚŽƌ ŚĂƐŽƚŚĞƌƐŝŐŶŝĨŝĐĂŶƚĚĞĨĞĐƚ͘
;ĨͿ>ŝŵďƐ͕ŵĞĂƐƵƌŝŶŐƚǁŽ;ϮͿŝŶĐŚĞƐŽƌŐƌĞĂƚĞƌŝŶĚŝĂŵĞƚĞƌ͕ƐŚĂůůďĞƌĞŵŽǀĞĚƵƐŝŶŐƚŚĞƚŚƌĞĞͲĐƵƚ ŵĞƚŚŽĚ;ƉƉĞŶĚŝdžͿ͘
;ŐͿtŚĞŶƉƌƵŶŝŶŐŵĂƚƵƌĞƚƌĞĞƐ͕ŶŽŵŽƌĞƚŚĂŶƚǁĞŶƚLJͲĨŝǀĞ;ϮϱͿƉĞƌĐĞŶƚŽĨƚŚĞůĞĂĨͲďĞĂƌŝŶŐĐĂŶŽƉLJ ƐŚŽƵůĚďĞƌĞŵŽǀĞĚ͘>ŝǀĞKĂŬƐĂƌĞůŝŵŝƚĞĚƚŽƚĞŶ;ϭϬͿƉĞƌĐĞŶƚ͘ ;ŚͿtŚĞŶƌĞĚƵĐŝŶŐƚŚĞůĞŶŐƚŚŽĨĂůŝŵďďĂĐŬƚŽĂůĂƚĞƌĂůďƌĂŶĐŚ͕ƚŚĞůĂƚĞƌĂůƐŚŽƵůĚďĞĂƚůĞĂƐƚŽŶĞͲ ƚŚŝƌĚƚŚĞĚŝĂŵĞƚĞƌŽĨƚŚĞƉŽƌƚŝŽŶƌĞŵŽǀĞĚ͘
;ŝͿzŽƵŶŐƚƌĞĞƐƐŚĂůůďĞƉƌƵŶĞĚƉƌŝŵĂƌŝůLJƚŽŝŵƉƌŽǀĞƐƚƌƵĐƚƵƌĞ;ƉƉĞŶĚŝdžͿ͘ ;ũͿWƌŝǀĂƚĞƚƌĞĞƐĞŶĐƌŽĂĐŚŝŶŐƵƉŽŶĂŝƚLJƐŝĚĞǁĂůŬŽƌƐƚƌĞĞƚ͕ĂŶĚĂƌĞŶŽƚƉƌŽǀŝĚŝŶŐƉƌŽƉĞƌŚĞŝŐŚƚ ĐůĞĂƌĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐ͕ƐŚĂůůďĞƌĂŝƐĞĚŽŶƚŚĞƐƚƌĞĞƚͲƐŝĚĞŽŶůLJƚŽŵŝƚŝŐĂƚĞŶƵŝƐĂŶĐĞŽƌŚĂnjĂƌĚ͘ dŚĞĐŽƐƚƐŚĂůůďĞĂĚũƵƐƚĞĚƚŽŽŶĞŚĂůĨƚŚĂƚĨŽƌĐŽŵƉůĞƚĞƌĂŝƐĞ͘ ;ŬͿdŚĞƵƐĞŽĨĐůŝŵďŝŶŐƐƉƵƌƐ͕ŐĂĨĨƐ͕ŽƌĂŶLJŽƚŚĞƌĐůŝŵďŝŶŐĚĞǀŝƐĞƚŚĂƚĐĂƵƐĞƐƉƵŶĐƚƵƌĞǁŽƵŶĚƐŝƐ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϳŽĨϰϯ
ƉƌŽŚŝďŝƚĞĚ͕ĞdžĐĞƉƚĨŽƌĂĞƌŝĂůƌĞƐĐƵĞĞĨĨŽƌƚƐ͕ŽƌĚƵƌŝŶŐƌĞŵŽǀĂůƐ͘ ;ůͿdŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůŶŽƚƉƌƵŶĞĂŶLJƚƌĞĞ;ƐͿ͕ǁŚŝĐŚŚĂǀĞďĞĞŶƉƌƵŶĞĚďLJĂƌĞƐŝĚĞŶƚŽƌŚŽŵĞŽǁŶĞƌ ĂŶĚŚĂǀĞďĞĞŶƚƌĂŝŶĞĚ͕ĐƵƚ͕ŽƌƐŚĞĂƌĞĚŝŶƐƵĐŚĂǁĂLJƚŽĨŽƌŵĂŚĞĚŐĞ͕ĞƐƉĂůŝĞƌ͕ŽƌƉŝĐƚƵƌĞƐƋƵĞ ƐŚĂƉĞ͕ĂŶĚŚĂǀĞŶŽƚďĞĞŶƚƌĂŝŶĞĚŝŶƚŚĞŶŽƌŵĂůůĂŶĚƐĐĂƉĞƐŚĂĚĞƚƌĞĞƐƚĂŶĚĂƌĚŽĨƉƌƵŶŝŶŐ͘^ƵĐŚ ƚƌĞĞƐƐŚĂůůŶŽƚďĞƌĞĐŽƌĚĞĚŽŶƚŚĞǁŽƌŬůŝƐƚ͘dŚĞƐĞƚƌĞĞƐĂƌĞƚŽďĞŶŽƚĞĚ͕ĂŶĚƚŚĞŽŶƚƌĂĐƚŽƌ ƐŚĂůůŝŶĨŽƌŵƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌŽĨƚŚĞŵďLJĂĚĚƌĞƐƐ͘ ;ŵͿŶLJŝŶĂƉƉƌŽƉƌŝĂƚĞƉŝĞĐĞŽĨŵĞƚĂů͕ǁŝƌĞ͕ƌƵďďĞƌ͕ǁŽŽĚ͕ŽƌŽƚŚĞƌŵĂƚĞƌŝĂůƚŚĂƚŝƐĚĂŵĂŐŝŶŐƚŚĞ ŐƌŽǁŝŶŐƚŝƐƐƵĞŽĨĂƚƌĞĞŽƌƉƌĞĚŝƐƉŽƐĞƐƚŚĞƚƌĞĞƚŽŝƌƌĞƉĂƌĂďůĞĚĂŵĂŐĞŝŶƚŚĞĨƵƚƵƌĞ͕ƐŚĂůůďĞ ƌĞŵŽǀĞĚ͘/ĨŝƚŝƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚƚŚĞŵĂƚĞƌŝĂůĐĂŶŶŽƚďĞƌĞŵŽǀĞĚǁŝƚŚŽƵƚĨƵƌƚŚĞƌĚĂŵĂŐĞƚŽ ƚŚĞŐƌŽǁŝŶŐƚŝƐƐƵĞŽĨƚŚĞƚƌĞĞ͕ŝƚƐŚĂůůŶŽƚďĞƌĞŵŽǀĞĚ͕ďƵƚŶĞĐĞƐƐĂƌLJĂĐƚŝŽŶƐƐŚĂůůďĞƚĂŬĞŶƚŽ ƌĞĚƵĐĞƚŚĞŝŵƉĂĐƚŽĨƚŚŝƐŵĂƚĞƌŝĂůƚŽƚŚĞƚƌĞĞďLJĐƵƚƚŝŶŐŽƵƚĂƐŵƵĐŚŽĨƚŚĞĞdžƉŽƐĞĚƐƵƌĨĂĐĞŽĨ ŝƚĂƐƉŽƐƐŝďůĞ͘
;ŶͿsŝŶĞƐƚŚĂƚĂƌĞĞŶƚǁŝŶĞĚŽŶƚŚĞƚƌƵŶŬŽƌƚŚƌŽƵŐŚŽƵƚƚŚĞůŝŵďƐƚƌƵĐƚƵƌĞƐŚĂůůďĞƌĞŵŽǀĞĚǁŝƚŚ ĐĂƵƚŝŽŶ͕ĂǀŽŝĚŝŶŐŝŶũƵƌLJƚŽƚƌĞĞ͘
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dŚĞĨŽůůŽǁŝŶŐĨŽƵƌǁŽƌŬƚLJƉĞĚĞƐĐƌŝƉƚŝŽŶƐŵĂLJďĞĂƐƐŝŐŶĞĚƚŽƚŚĞŽŶƚƌĂĐƚŽƌ͘ůůŐĞŶĞƌĂůƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌ ƉƌƵŶŝŶŐ͕ĂƐĚĞƐĐƌŝďĞĚŝŶƐĞĐƚŝŽŶϱϭϰ͕ƐŚĂůůďĞĨŽůůŽǁĞĚ͘ ;ĂͿ'ƌŝĚWƌƵŶŝŶŐʹ'ƌŝĚƉƌƵŶŝŶŐŵĞĂŶƐƌŽƵƚŝŶĞƚƌĞĞƉƌƵŶŝŶŐƉĞƌƉƌĞͲĚĞƐŝŐŶĂƚĞĚĚŝƐƚƌŝĐƚƐͬŐƌŝĚƐŽŶĂ ƐĐŚĞĚƵůĞĚ ĐLJĐůĞ Žƌ ĂŶLJ ŐƌŽƵƉŝŶŐ ŽĨ ƐĞǀĞŶ ;ϳͿ Žƌ ŵŽƌĞ ƚƌĞĞƐ ŶĞĂƌ ŽŶĞ ĂŶŽƚŚĞƌ͕ ǁŝƚŚŝŶ ĂŶ ĂƉƉƌŽdžŝŵĂƚĞϮϬϬͲLJĂƌĚƌĂĚŝƵƐ͕ĂŶĚƐŚĂůůďĞƉĂŝĚĂƐŐƌŝĚƉƌƵŶŝŶŐĞǀĞŶǁŚĞŶŽĨĨƚŚĞƌĞŐƵůĂƌůLJ ƐĐŚĞĚƵůĞĚĚŝƐƚƌŝĐƚͬŐƌŝĚƉůĂŶ͘dŚĞƉƌŝĐĞƉĂŝĚĨŽƌŐƌŝĚƉƌƵŶŝŶŐƐŚĂůůďĞĂƐƐƉĞĐŝĨŝĞĚŝŶ^ĞĐƚŝŽŶϰ͘ϭϮ;Ϳ͘
;ďͿ&ƵůůWƌƵŶŝŶŐͲdŚĞŽďũĞĐƚŝǀĞŝƐƚŽŝŵƉƌŽǀĞƚƌĞĞƐƚƌƵĐƚƵƌĞ͕ƌĞĚƵĐĞǁŝŶĚƐĂŝůĞĨĨĞĐƚ͕ĂůůŽǁĨŽƌ ŝŵƉƌŽǀĞĚůŝŐŚƚƉĞŶĞƚƌĂƚŝŽŶ͕ƉƌŽǀŝĚĞƉƌŽƉĞƌĐůĞĂƌĂŶĐĞƐ͕ĂŶĚƚŽƌĞŵŽǀĞĚĞĂĚŽƌŽƚŚĞƌƵŶĚĞƐŝƌĂďůĞ ůŝŵďƐ͘
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;ĐͿƌŽǁŶZĂŝƐĞͲ/ŶĂƌĞĂƐǁŚĞƌĞƌĂŝƐĞƐĂƌĞƐƉĞĐŝĨŝĞĚ͕ŶŽŽƚŚĞƌƚLJƉĞŽĨƉƌƵŶŝŶŐƐŚĂůůďĞĚŽŶĞ͘ĐƌŽǁŶ ƌĂŝƐĞŝƐƌĞŵŽǀĂůŽĨůŽǁĞƌďƌĂŶĐŚĞƐŽŶůLJ͕ƚŽƉƌŽǀŝĚĞƉƌŽƉĞƌŚĞŝŐŚƚĐůĞĂƌĂŶĐĞ͘&ŽƵƌƚĞĞŶĂŶĚŽŶĞͲ ŚĂůĨ;ϭϰ͘ϱͿĨĞĞƚĐůĞĂƌĂŶĐĞŝƐƌĞƋƵŝƌĞĚŽǀĞƌƐƚƌĞĞƚƐ͕ǁŚĞƌĞĂƉƉůŝĐĂďůĞ͘EŝŶĞ;ϵͿĨĞĞƚĐůĞĂƌĂŶĐĞŝƐ ƌĞƋƵŝƌĞĚŽǀĞƌƉĂƌŬǁĂLJƐĂŶĚƐŝĚĞǁĂůŬƐ͘
ůĞǀĞŶ;ϭϭͿĨĞĞƚĐůĞĂƌĂŶĐĞŝƐƌĞƋƵŝƌĞĚŽǀĞƌĞƋƵĞƐƚƌŝĂŶ
ƚƌĂŝůƐ͘dŽĂǀŽŝĚĚĞƐƚƌŽLJŝŶŐƚŚĞŶĂƚƵƌĂůƐƚƌƵĐƚƵƌĞŽĨƐŵĂůůƚƌĞĞƐ͕ƚŚĞLJƐŚĂůůŶŽƚďĞƌĂŝƐĞĚƚŽƚŚĞĂĨŽƌĞͲ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϮϴŽĨϰϯ
ŵĞŶƚŝŽŶĞĚ ƐƉĞĐŝĨŝĐĂƚŝŽŶƐ͘ /ŶƐƚĞĂĚ͕ ƐƵĐŚ ƚƌĞĞƐ ƐŚĂůů ďĞ ƉƌƵŶĞĚ ƚŽ ƌĞĚƵĐĞ ƚŚĞ ůĞŶŐƚŚ ŽĨ ƚŚĞ ŽďƐƚƌƵĐƚŝŶŐůŝŵďƐ͘
;ĚͿƌŽǁŶůĞĂŶŝŶŐͲ/ŶĂƌĞĂƐǁŚĞƌĞĐůĞĂŶŝŶŐŝƐƐƉĞĐŝĨŝĞĚ͕ŶŽŽƚŚĞƌƚLJƉĞŽĨƉƌƵŶŝŶŐƐŚĂůůďĞĚŽŶĞ͘ ƌŽǁŶĐůĞĂŶŝŶŐŝƐƚŚĞƌĞŵŽǀĂůŽĨĚĞĂĚ͕ĚLJŝŶŐ͕ĚŝƐĞĂƐĞĚ͕ďƌŽŬĞŶĂŶĚǁĞĂŬůLJĂƚƚĂĐŚĞĚďƌĂŶĐŚĞƐ͘
ƌŽǁŶĐůĞĂŶŝŶŐƐŚĂůůĂůƐŽŝŶĐůƵĚĞĐƌŽǁŶƌĂŝƐĞ͕ǁŚĞŶŶĞĞĚĞĚƚŽƉƌŽǀŝĚĞƉƌŽƉĞƌĐůĞĂƌĂŶĐĞ͘
;ĞͿƌŽǁŶZĞĚƵĐƚŝŽŶͲ/ŶĂƌĞĂƐǁŚĞƌĞŚĞŝŐŚƚŝƐƐƵĞƐĂƌĞƐƉĞĐŝĨŝĞĚ͕ŶŽŽƚŚĞƌƚLJƉĞŽĨƉƌƵŶŝŶŐƐŚĂůůďĞ ĚŽŶĞ͘ƌŽǁŶƌĞĚƵĐƚŝŽŶŝƐƵƐĞĚƚŽƌĞĚƵĐĞƚŚĞŚĞŝŐŚƚĂŶĚͬŽƌƐƉƌĞĂĚŽĨĂƚƌĞĞ͘dŚŝŶŶŝŶŐĐƵƚƐĂƌĞ ŵŽƐƚĞĨĨĞĐƚŝǀĞŝŶŵĂŝŶƚĂŝŶŝŶŐƚŚĞƐƚƌƵĐƚƵƌĂůŝŶƚĞŐƌŝƚLJĂŶĚŶĂƚƵƌĂůĨŽƌŵŽĨĂƚƌĞĞĂŶĚŝŶĚĞůĂLJŝŶŐ ƚŚĞƚŝŵĞǁŚĞŶŝƚǁŝůůŶĞĞĚƚŽďĞƉƌƵŶĞĚĂŐĂŝŶ͘dŚĞůĂƚĞƌĂůƚŽǁŚŝĐŚĂďƌĂŶĐŚŽƌƚƌƵŶŬŝƐĐƵƚƐŚŽƵůĚ ďĞĂƚůĞĂƐƚŽŶĞͲŚĂůĨƚŚĞĚŝĂŵĞƚĞƌŽĨƚŚĞĐƵƚƚŽďĞŵĂĚĞ͘
;ĨͿWĂůŵWƌƵŶŝŶŐʹWĂůŵĨƌŽŶĚƐĂƌĞƚŽďĞƌĞŵŽǀĞĚƐŽƚŚĂƚĂϵϬͲĚĞŐƌĞĞĂŶŐůĞŝƐĂĐŚŝĞǀĞĚ͘dŚĞĂŶŐůĞ ƐŚĂůůďĞŵĞĂƐƵƌĞĚĨƌŽŵƚŚĞŚŽƌŝnjŽŶƚĂůĂdžŝƐŽĨƚŚĞŐƌŽǁŝŶŐƉŽŝŶƚďĂƐĞ͘
ůůĚĞĂĚĨƌŽŶĚƐ͕ĨůŽǁĞƌƐƚĂůŬƐĂŶĚĨƌƵŝƚƐƚĂůŬƐƐŚĂůůďĞƌĞŵŽǀĞĚĂŶĚĐƵƚĂƐĐůŽƐĞƚŽƚŚĞŝƌďĂƐĞĂƐ ƉŽƐƐŝďůĞǁŝƚŚŽƵƚĚĂŵĂŐŝŶŐĂĚũĂĐĞŶƚĨƌŽŶĚƐŽƌƚƌƵŶŬƚŝƐƐƵĞ͘>ŽŽƐĞƉĞƚŝŽůĞƐĨƌŽŵƉƌĞǀŝŽƵƐƉƌƵŶŝŶŐ ŽƉĞƌĂƚŝŽŶƐƐŚĂůůďĞƌĞŵŽǀĞĚĐĂƌĞĨƵůůLJ͘
tŚĞŶƉƌƵŶŝŶŐƉĂůŵƐŝŶƚŚĞWŚŽĞŶŝdžŐĞŶƵƐŝƚŝƐŝŵƉĞƌĂƚŝǀĞƚŽƐƚĞƌŝůŝnjĞĂůůƉƌƵŶŝŶŐĞƋƵŝƉŵĞŶƚ;ĂƐ ĚĞƐĐƌŝďĞĚŝŶƐĞĐƚŝŽŶϰ͘ϮϱƚŽĂǀŽŝĚƉŽƐƐŝďůĞƚƌĞĞͲƚŽͲƚƌĞĞƚƌĂŶƐŵŝƐƐŝŽŶŽĨƚŚĞĚŝƐĞĂƐĞ&ƵƐĂƌŝƵŵ ŽdžLJƐƉŽƌƵŵ͘
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;ďͿdƌĞĞƐĚĞƐŝŐŶĂƚĞĚĨŽƌƌĞŵŽǀĂůďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌǁŝůůďĞŵĂƌŬĞĚǁŝƚŚĂKd͕ƵƐŝŶŐ ǁŚŝƚĞƉĂŝŶƚ͕ŽŶƚŚĞƚƌƵŶŬ͕ũƵƐƚĂďŽǀĞƚŚĞƌŽŽƚĐŽůůĂƌŽĨƚŚĞƚƌĞĞ͘/ĨĨŽƌĂŶLJƌĞĂƐŽŶƚŚĞƌĞŝƐĚŽƵďƚ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
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ƌĞŐĂƌĚŝŶŐƚŚĞƚƌĞĞƐ;ƐͿƚŽďĞƌĞŵŽǀĞĚ͕ƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌǁŝůůďĞĐŽŶƚĂĐƚĞĚďĞĨŽƌĞ ǁŽƌŬĐŽŵŵĞŶĐĞƐ͘
;ĐͿ&ĞůůŝŶŐŝƐƉĞƌŵŝƚƚĞĚƉƌŽǀŝĚŝŶŐŝƚĐĂŶďĞƐĂĨĞůLJĂĐŚŝĞǀĞĚǁŝƚŚŽƵƚĞŶĚĂŶŐĞƌŝŶŐƐƵƌƌŽƵŶĚŝŶŐƉƌŽƉĞƌƚLJ ĂŶĚǁŝůůŶŽƚŝŶƚĞƌĨĞƌĞǁŝƚŚǀĞŚŝĐƵůĂƌƚƌĂĨĨŝĐ͘ƚĂŐůŝŶĞ;ƐͿƐŚĂůůďĞƵƐĞĚƚŽĚŝƌĞĐƚĨĂůůĂůǁĂLJƐ͘ůů ďLJƐƚĂŶĚĞƌƐƐŚĂůůďĞŬĞƉƚĂƚĂƐĂĨĞĚŝƐƚĂŶĐĞĨƌŽŵƚŚĞǁŽƌŬƐŝƚĞ͘ ;ĚͿdƌĞĞƐƚŽŽůĂƌŐĞƚŽĨĞůůƐŚĂůůďĞƌĞŵŽǀĞĚŝŶƐĞĐƚŝŽŶƐ͘ ĂĐŚƐĞĐƚŝŽŶƐŚĂůůďĞĐƵƚŝŶƚŽĂƐŝnjĞƚŚĂƚĐĂŶďĞ
ŚĂŶĚůĞĚĞĂƐŝůLJĂŶĚƐĂĨĞůLJďLJŽŶĞƚƌĞĞǁŽƌŬĞƌ͘/ĨƐĞĐƚŝŽŶŝƐƚŽŽŚĞĂǀLJĨŽƌŽŶĞǁŽƌŬĞƌ͕ŝƚƐŚĂůůďĞƌŝŐŐĞĚ ĂŶĚůŽǁĞƌĞĚƚŽƚŚĞŐƌŽƵŶĚ͘dŚĞŵĞĂŶƐŽĨůŽǁĞƌŝŶŐƐŚĂůůďĞĂĐĐĞƉƚĂďůĞƚŽƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐ ŝƌĞĐƚŽƌ͘
;ĞͿ^ƚƵŵƉŐƌŝŶĚŝŶŐƐŚĂůůďĞŝŶĐŽƌƉŽƌĂƚĞĚǁŝƚŚƚŚĞƌĞŵŽǀĂůŽĨƚŚĞƚƌĞĞĂŶĚƉĞƌĨŽƌŵĞĚŽŶƚŚĞƐĂŵĞĚĂLJ͘ dŚĞƵŶĚĞƌŐƌŽƵŶĚƐĞƌǀŝĐĞĂůĞƌƚƌĞŐŝŽŶĂůŶŽƚŝĨŝĐĂƚŝŽŶĐĞŶƚĞƌ;ŝŐůĞƌƚͿŵƵƐƚďĞĐĂůůĞĚƉƌŝŽƌƚŽƚŚĞ ƐƚĂƌƚŽĨƚŚĞƌĞŵŽǀĂůůŝƐƚ͕ƚŽĂůůŽǁĞŶŽƵŐŚƚŝŵĞĨŽƌĞĂĐŚƐŝƚĞƚŽďĞŵĂƌŬĞĚďĞĨŽƌĞǁŽƌŬďĞŐŝŶƐ͘ ;ĨͿdŚĞĚĞƉƚŚŽĨƐƚƵŵƉŐƌŝŶĚƐŚĂůůďĞŶŽůĞƐƐƚŚĂŶĞŝŐŚƚĞĞŶ;ϭϴͿŝŶ ĐŚĞƐďĞůŽǁůŽǁĞƐƚƐƵƌĨĂĐĞŐƌĂĚĞ͘dŚĞ ŐƌŝŶĚƐŚĂůůĐŽŵƉƌŝƐĞƚŚĞĞŶƚŝƌĞƐƚƵŵƉďĞůŽǁƐŽŝůƐƵƌĨĂĐĞĂŶĚĂŶLJƵƉůŝĨƚĞĚƉŽƌƚŝŽŶŽĨƚŚĞƐŽŝůĐĂƵƐĞĚ ďLJƚŚĞƌŽŽƚĨůĂƌĞ͘
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ZdŽĨƚŚŝƐĐŽŶƚƌĂĐƚ
ďĞĨŽƌĞƚŚĞĞdžĐĂǀĂƚŝŽŶŽĨĂŶLJƚƌĞĞͲƉůĂŶƚŝŶŐƐŝƚĞ͘
;ĚͿWƌŝŽƌƚŽƉůĂŶƚŝŶŐ͕ƚŚĞŶĂƚƵƌĂůƌŽŽƚĨůĂƌĞŵƵƐƚďĞŝĚĞŶƚŝĨŝĞĚ͘ŶLJƐŽŝůƚŚĂƚŵĂLJďĞĐŽǀĞƌŝŶŐƚŚĞƌŽŽƚ ĨůĂƌĞŵƵƐƚďĞƌĞŵŽǀĞĚ͘dŚĞƉůĂŶƚŝŶŐŚŽůĞƐŚĂůůďĞĚƵŐƚŽĂƐŝnjĞŽĨƚǁŽƚŝŵĞƐƚŚĞǁŝĚƚŚŽĨƚŚĞƌŽŽƚ ďĂůů͕ůĞĂǀŝŶŐƚŚĞďŽƚƚŽŵĨŝƌŵ͕ƚŽƉƌĞǀĞŶƚƚŚĞƚƌĞĞĨƌŽŵƐĞƚƚůŝŶŐ͘dŚĞĐŽŶƚĂŝŶĞƌƐŚĂůůďĞƌĞŵŽǀĞĚ ĐĂƌĞĨƵůůLJƚŽƉƌĞǀĞŶƚƌŽŽƚŽƌƐƚĞŵĚĂŵĂŐĞ͖ƚŚĞƚƌĞĞƐŚĂůůŶŽƚďĞƉƵůůĞĚďLJƚŚĞƐƚĞŵ͘/ĨƚŚĞĐŽŶƚĂŝŶĞƌ ĚŽĞƐŶŽƚĐŽŵĞŽĨĨĞĂƐŝůLJ͕ŝƚƐŚĂůůďĞĐƵƚŽŶŽŶĞŽƌŵŽƌĞƐŝĚĞƐ͕ĨƌŽŵƚŽƉƚŽďŽƚƚŽŵ͕ƚŽĂůůŽǁŝƚƐ ƌĞŵŽǀĂů͘ŝƌĐůŝŶŐƌŽŽƚƐƐŚĂůůďĞƐĞƉĂƌĂƚĞĚĂŶĚƐƉƌĞĂĚŽƵƚǁĂƌĚ͘ĞŶƐĞůLJŵĂƚƚĞĚƌŽŽƚƐƚŚĂƚĐĂŶŶŽƚ ďĞƚĞĂƐĞĚĂƉĂƌƚƐŚĂůůďĞĐƵƚĐůĞĂŶůLJŝŶƚǁŽƉůĂĐĞƐ͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
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ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϬŽĨϰϯ
;ĞͿdŚĞƚƌĞĞƐŚĂůůďĞůŝĨƚĞĚďLJƚŚĞƌŽŽƚďĂůůŽŶůLJĂŶĚĐĂƌĞĨƵůůLJƉůĂĐĞĚŝŶƚŚĞƉůĂŶƚŝŶŐŚŽůĞ͘dŚĞƌŽŽƚďĂůů ƐŚĂůůďĞŽƌŝĞŶƚĞĚƐŽƚŚĂƚƚŚĞƚƌĞĞƐƚĂŶĚƐǀĞƌƚŝĐĂů͕ǁŝƚŚƚŚĞƚŽƉŽĨƚŚĞƌŽŽƚďĂůůĂƉƉƌŽdžŝŵĂƚĞůLJŽŶĞƚŽ ƚǁŽŝŶĐŚĞƐŚŝŐŚĞƌƚŚĂŶƚŚĞƐŽŝůŐƌĂĚĞ͘ĂĐŬĨŝůůƐŚĂůůďĞŶĂƚŝǀĞƐŽŝůŽŶůLJǁŝƚŚŶŽƌŽĐŬƐŐƌĞĂƚĞƌƚŚĂŶ ƚŚƌĞĞŝŶĐŚĞƐĚŝĂŵĞƚĞƌ͘^ŽŝůƐŚĂůůŶŽƚďĞƉůĂĐĞĚŽŶƚŽƉŽĨƚŚĞƌŽŽƚďĂůů͘ŝƐƉůĂĐĞĂŝƌƉŽĐŬĞƚƐŝŶƚŚĞ ďĂĐŬĨŝůůďLJŵŽĚĞƌĂƚĞůLJƚĂŵƉŝŶŐǁŝƚŚƐŚŽǀĞůŚĂŶĚůĞĂŶĚǁĂƚĞƌŝŶŐŝŶ͘ŚĞĐŬĨŽƌƐĞƚƚůŝŶŐĂŶĚĂĚĚ ďĂĐŬĨŝůůŝĨŶĞĐĞƐƐĂƌLJ͘dŽĂǀŽŝĚĐŽŵƉĂĐƚŝŽŶŽĨƚŚĞƐŽŝů͕ĚŽŶŽƚƚĂŵƉƚŚĞďĂĐŬĨŝůůǁŝƚŚĞdžĐĞƐƐŝǀĞ ƉƌĞƐƐƵƌĞŽƌƵƐĞďƌŽĂĚ͕ŚĞĂǀLJŽďũĞĐƚƐ͘
;ĨͿŶLJƚƌĞĞƚŚĂƚĐĂŶƐƚĂŶĚƵƉƌŝŐŚƚǁŝƚŚŽƵƚƐƵƉƉŽƌƚĂŶĚǁŽƵůĚďĞĂďůĞƚŽǁŝƚŚƐƚĂŶĚƉƌĞǀĂŝůŝŶŐǁŝŶĚƐ ĂůŽŶŐǁŝƚŚLJĞĂƌůLJ^ĂŶƚĂŶĂǁŝŶĚŽĐĐƵƌƌĞŶĐĞƐƐŚĂůůŶŽƚďĞƐƚĂŬĞĚ͘ ;ŐͿ/ĨƵƉŽŶĚĞƚĞƌŵŝŶŝŶŐĂƚƌĞĞĐĂŶŶŽƚƐƵƉƉŽƌƚŝƚƐĞůĨ͕ƚǁŽƐƚĂŬĞƐŽĨŐŽŽĚƋƵĂůŝƚLJƚƌĞĂƚĞĚůŽĚŐĞƉŽůĞƉŝŶĞ ŶŽƚĞdžĐĞĞĚŝŶŐĞŝŐŚƚĨĞĞƚŝŶůĞŶŐƚŚĂŶĚŶŽŵŽƌĞƚŚĂŶƚǁŽĂŶĚŽŶĞͲŚĂůĨŝŶĐŚĞƐŝŶĚŝĂŵĞƚĞƌ͕ƐŚĂůůďĞ ƵƐĞĚ͘dŚĞƐƚĂŬĞƐƐŚĂůůďĞƉůĂĐĞĚŝŶĂŶŽƌƚŚǁĞƐƚͬƐŽƵƚŚĞĂƐƚĐŽŶĨŝŐƵƌĂƚŝŽŶƚŽŐŝǀĞŵĂdžŝŵƵŵƐƵƉƉŽƌƚ ĚƵƌŝŶŐŚĞĂǀLJǁŝŶĚĐŽŶĚŝƚŝŽŶƐĂŶĚƉůĂĐĞĚŽƵƚƐŝĚĞƚŚĞƌŽŽƚďĂůů͕ĂǀŽŝĚŝŶŐĂŶLJĚĂŵĂŐĞƚŽƌŽŽƚƐ͘^ƚĂŬĞƐ ƐŚĂůůďĞƉŽƵŶĚĞĚĚŽǁŶƵŶƚŝůƐƵĨĨŝĐŝĞŶƚůLJƐƚĂďůĞ͘dŚĞƚŽƉŽĨƚŚĞƐƚĂŬĞƐŝŶƚĞƌĨĞƌŝŶŐǁŝƚŚďƌĂŶĐŚ ƐƚƌƵĐƚƵƌĞƐŚĂůůďĞĐƵƚŽĨĨďĞůŽǁƚŚĞůŽǁĞƐƚďƌĂŶĐŚǁŚĞƌĞƚŚĞƚƌĞĞ͛ƐŐƌŽǁƚŚŚĂďŝƚƉĞƌŵŝƚƐ͘ ;ŚͿdƌĞĞƐƐŚĂůůďĞƚŝĞĚƚŽƐƚĂŬĞƐƵƐŝŶŐƌƵďďĞƌĐŝŶĐŚƚŝĞƐ͕ƚŚŝƌƚLJͲƚǁŽŝŶĐŚĞƐŝŶůĞŶŐƚŚ͕ĂƚƚĂĐŚĞĚďLJĂ ŵĞƚŚŽĚŽĨĂĨŝŐƵƌĞĞŝŐŚƚůŽŽƉďĞƚǁĞĞŶƚŚĞƚƌĞĞƚƌƵŶŬĂŶĚĞĂĐŚƐ ƚĂŬĞ͘dŝĞƐƐŚĂůůďĞĂƚƚĂĐŚĞĚƚŽƐƚĂŬĞƐ ǁŝƚŚŐĂůǀĂŶŝnjĞĚŶĂŝůƐĚƌŝǀĞŶŝŶƚŽƚŚĞƐƚĂŬĞƐ͘ŵŝŶŝŵƵŵŽĨƚǁŽƚŝĞƐƐŚĂůůďĞƵƐĞĚ͕ƉůĂĐĞĚŚŝŐŚĞŶŽƵŐŚ ŽŶƚŚĞƚƌƵŶŬƚŽƐƵƉƉŽƌƚƚŚĞĐƌŽǁŶ͘ĚĚŝƚŝŽŶĂůƚŝĞƐƐŚĂůůďĞƉůĂĐĞĚůŽǁĞƌŽŶƚŚĞƚƌƵŶŬŝĨŶĞĞĚĞĚƚŽ ƐƚƌĂŝŐŚƚĞŶ͘dŝĞƐƐŚĂůůďĞƚĂƵŐŚƚĞŶŽƵŐŚƚŽƉƌĞǀĞŶƚƚƌƵŶŬĨƌŽŵƌƵďďŝŶŐĂŐĂŝŶƐƚƚŚĞƐƚĂŬĞƐ͕ďƵƚǁŝƚŚĂ ŵŽĚĞƐƚĂŵŽƵŶƚŽĨƐůĂĐŬƚŽĂůůŽǁŵŽǀĞŵĞŶƚŽĨƚŚĞƚƌĞĞ͘dŝĞƐƐŚĂůůŶŽƚďĞƉůĂĐĞĚŝŶďƌĂŶĐŚĐƌŽƚĐŚĞƐ͘ ;ŝͿƉůĂƐƚŝĐŐƵĂƌĚƐŚĂůůďĞƉůĂĐĞĚůŽŽƐĞůLJĂƌŽƵŶĚƚŚĞďĂƐĞŽĨƚŚĞƚƌƵŶŬ͘ ;ũͿǁĂƚĞƌŝŶŐďĂƐŝŶƐŚĂůůďĞƉůĂĐĞĚĂƌŽƵŶĚƚŚĞŽƵƚĞƌĞĚŐĞŽĨƚŚĞƌŽŽƚďĂůůŝŶĂƌĞĂƐǁŚĞƌĞƌƵŶͲŽĨĨǁŝůů ŽĐĐƵƌ͘dŚĞďĂƐŝŶƐŚĂůůďĞŝŶƚŚĞĨŽƌŵŽĨĂƚŝŐŚƚůLJĐŽŵƉĂĐƚĞĚƐŽŝůďĞƌŵ͕ƚŚƌĞĞŝŶĐŚĞƐŝŶŚĞŝŐŚƚ͘ ǁĂƚĞƌŝŶŐďĂƐŝŶŝƐŶŽƚƌĞƋƵŝƌĞĚŽŶƚƵƌĨŽƌĚĞŶƐĞŐƌŽƵŶĚĐŽǀĞƌ͘
^d z
dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƐƚĂŬĞĂŶLJƚƌĞĞƚŚĂƚŝƐƵŶĂďůĞƚŽƐƚĂŶĚƵƉƌŝŐŚƚŽŶŝƚƐŽǁŶ͕ǁŚĞƚŚĞƌƚŚĞĞdžŝƐƚŝŶŐƐƚĂŬĞƐŚĂǀĞ ďĞĐŽŵĞůŽŽƐĞŶĞĚ͕ĚĂŵĂŐĞĚ͕ŝŶĐŽƌƌĞĐƚůLJŝŶƐƚĂůůĞĚ͕ŽƌǁŚĞƌĞƚŚĞƐƚĂŬĞƐĂƌĞĂďƐĞŶƚ͘dŚŝƐǁŽƌŬƐŚĂůůďĞƉĞƌĨŽƌŵĞĚ ŝŶĂŶLJĂƌĞĂǁŚĞƌĞƚŚĞĐŽŶƚƌĂĐƚŽƌŝƐƉƌƵŶŝŶŐŽƌǁŚĞƌĞŽƚŚĞƌǁŝƐĞĚŝƌĞĐƚĞĚďLJƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ͘ ůůƚŚĞƐƚĂŶĚĂƌĚƐƐŚĂůůďĞĨŽůůŽǁĞĚ͘
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dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƌĞŵŽǀĞƐƚĂŬĞƐĨƌŽŵƚƌĞĞƐƚŚĂƚŚĂǀĞĂĐŚŝĞǀĞĚĞŶŽƵŐŚƐƚĂďŝůŝƚLJĂŶĚŐƌŽǁŶƚŽĂƚůĞĂƐƚƚŚƌĞĞ ;ϯͿŝŶĐŚĞƐĚŝĂŵĞƚĞƌĂƚďƌĞĂƐƚŚĞŝŐŚƚ;,Ϳ͘dŚĞƐƚĂŬĞƐƐŚŽƵůĚďĞƉƵůůĞĚĐŽŵƉůĞƚĞůLJŽƵƚŽĨƚŚĞŐƌŽƵŶĚǁŚĞŶ ƉŽƐƐŝďůĞ͖ŽƚŚĞƌǁŝƐĞ͕ƚŚĞƐƚĂŬĞƐƐŚĂůůďĞĐƵƚĚŽǁŶďĞůŽǁŐƌĂĚĞĂŶĚďĂĐŬĨŝůůĞĚǁŝƚŚƐŽŝů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϭŽĨϰϯ
ůůƵŶĚĂŵĂŐĞĚƚƌĞĞƐƚĂŬĞƐƚŚĂƚĂƌĞƐƵŝƚĂďůĞĨŽƌƌĞͲƵƐĞƐŚĂůůďĞƌĞƚƵƌŶĞĚƚŽƚŚĞŝƚLJ͘dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůĚŝƐƉŽƐĞ ŽĨĂůůĚĂŵĂŐĞĚƚƌĞĞƐƚĂŬĞƐ͘
^ƚĂŬĞƌĞŵŽǀĂůƐŚĂůůďĞƉĞƌĨŽƌŵĞĚŝŶĂŶLJĂƌĞĂǁŚĞƌĞƚŚĞĐŽŶƚƌĂĐƚŽƌŝƐƉƌƵŶŝŶŐ͕ĂŶĚƚŚĞƌĞƐŚĂůůďĞŶŽĞdžƚƌĂ ĐŚĂƌŐĞŝŶĐƵƌƌĞĚ͘
Z
DKs>K&Zh^,E
Z/^
dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƌĞŵŽǀĂůĂŶĚĚŝƐƉŽƐĂůŽĨĂůůĚĞďƌŝƐ͕ŝ͘Ğ͘ǁŽŽĚ͕ďƌĂŶĐŚĞƐ͕ďƌƵƐŚ͕ ĐŚŝƉƉŝŶŐƐ͕ĂŶĚĂŶLJŽƚŚĞƌŵĂƚĞƌŝĂůƌĞƐƵůƚŝŶŐĨƌŽŵƚƌĞĞŵĂŝŶƚĞŶĂŶĐĞŽƉĞƌĂƚŝŽŶƐ͘
;ĂͿŽŶƚƌĂĐƚŽƌŵƵƐƚĐŽŵƉůLJǁŝƚŚĂůůƐƚĂƚĞ͕ĐŽƵŶƚLJĂŶĚůŽĐĂůůĂǁƐĂŶĚŽƌĚŝŶĂŶĐĞƐĂƉƉůŝĐĂďůĞƚŽĂŶĚ ŐŽǀĞƌŶŝŶŐƐƵĐŚĚŝƐƉŽƐĂů͘
;ďͿŝƐƉŽƐĂůŽĨĂůů
ƵĐĂůLJƉƚƵƐǁŽŽĚŝŶĨĞƐƚĞĚǁŝƚŚƚŚĞůĂƌǀĂĞŽĨƚŚĞ
ƵĐĂůLJƉƚƵƐ>ŽŶŐ,ŽƌŶĞĚŽƌĞƌƐŚĂůů
ĨŽůůŽǁƚŚĞ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂWƵďůŝĐZĞƐŽƵƌĐĞƐŽĚĞ͕ƌƚŝĐůĞϱ͕^ĞĐƚŝŽŶϰϳϭϰ͘ϱ͘
dZ
td
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tĂƚĞƌŝŶŐŝƐƚŽďĞƉĞƌĨŽƌŵĞĚďLJĂŽŶĞͲŵĂŶĐƌĞǁǁŝƚŚĂǁĂƚĞƌƚƌƵĐŬ͘ŽŶƚƌĂĐƚŽƌƐŚĂůůŝŶĐůƵĚĞƚŚĞƉƌŝĐŝŶŐƚŽ ǁĂƚĞƌŶĞǁůLJƉůĂŶƚĞĚƚƌĞĞƐĨŽƌƚŚĞĨŝƌƐƚLJĞĂƌĂĨƚĞƌŝŶŝƚŝĂůƉůĂŶƚŝŶŐ͘tĂƚĞƌŝŶŐǁŝůůŽĐĐƵƌĂůŽŶŐǀĂƌŝŽƵƐƌŽƵƚĞƐ ŝŶĐůƵĚŝŶŐůĂŶĚƐĐĂƉĞŵĞĚŝĂŶƐ͕ƉĂƌŬǁĂLJƐ͕ƉĂƌŬƐ͕ĂŶĚŝƚLJĨĂĐŝůŝƚŝĞƐ͘ƚƚŚĞĚŝƐĐƌĞƚŝŽŶŽĨƚŚĞWƵďůŝĐtŽƌŬƐ^ĞƌǀŝĐĞƐ ŝƌĞĐƚŽƌ͕ŽůĚĞƌƚƌĞĞƐǁŝůůďĞŝŶĐůƵĚĞĚŽŶĂǁĂƚĞƌŝŶŐƐĐŚĞĚƵůĞ͘
ZKZ/^d^
Zs/
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KŶŽĐĐĂƐŝŽŶ͕ƚŚĞŝƚLJƌĞƋƵŝƌĞƐƚƌĞĞĞǀĂůƵĂƚŝŽŶƐŝŶĐůƵĚŝŶŐǁƌŝƚƚĞŶƌĞƉŽƌƚƐ͘dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌŽǀŝĚĞĂŶŚŽƵƌůLJ ƌĂƚĞĨŽƌĂŶƌďŽƌŝƐƚƚŚĂƚĐĂŶƌĞƐƉŽŶĚƚŽƚŚĞŝƚLJ͛ƐƌĞƋƵĞƐƚ;ƐͿĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨĚĞƚĂŝůĞĚĂƌďŽƌŝƐƚƌĞƉŽƌƚƐ͕ ƚƌĞĞƌŝƐŬĂƐƐĞƐƐŵĞŶƚƌĞƉŽƌƚƐ͕ƚƌĞĞĞǀĂůƵĂƚŝŽŶƐĂŶĚƐŝƚĞŝŶƐƉĞĐƚŝŽŶƐ͘ZĞƉŽƌƚŝŶŐĐĂŶďĞŐĞŶĞƌĂƚĞĚŽŶĂƐůŝƚƚůĞĂƐ ŽŶĞƚƌĞĞƚŽĂŶĞŶƚŝƌĞƵƌďĂŶĨŽƌĞƐƚƉŽƉƵůĂƚŝŽŶĂŶĚŝƐŚĂŶĚůĞĚŽŶĂĐĂƐĞͲďLJͲĐĂƐĞďĂƐŝƐ͘
D/>>/E'
KŶŽĐĐĂƐŝŽŶ͕ƚŚĞŝƚLJŵĂLJƌĞƋƵĞƐƚĨŽƌƐŽŵĞŽĨƚŚĞƌĞŵŽǀĞĚhƌďĂŶ&ŽƌĞƐƚŵĂƚĞƌŝĂůďĞŵŝůůĞĚĚŽǁŶĨŽƌƐƉĞĐŝĂů ƉƌŽũĞĐƚƐ͘dŚĞŽŶƚƌĂĐƚŽƌƐŚĂůůƉƌŽǀŝĚĞĂƉĞƌĨŽŽƚŵŝůůŝŶŐĐŽƐƚŽĨƚŚŝƐŵĂƚĞƌŝĂů͘DŝůůŝŶŐĐĂŶďĞƉĞƌĨŽƌŵĞĚŽŶŽƌ ŽĨĨƐŝƚĞ͘
ϱ͘
s>hd/KEEs
EKZ^
>
d/KEWZK
^^
/E/d/>^Z
E/E'
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϮŽĨϰϯ
ůůZ&WƌĞƐƉŽŶƐĞƐǁŝůůƵŶĚĞƌŐŽĂŶŝŶŝƚŝĂůƌĞǀŝĞǁƚŽĚĞƚĞƌŵŝŶĞƌĞƐƉŽŶƐŝǀĞŶĞƐƐƚŽƚŚĞŝŶƐƚƌƵĐƚŝŽŶƐŚĞƌĞŝŶ͘dŚŽƐĞ Z&WƌĞƐƉŽŶƐĞƐŝŶŝƚŝĂůůLJĚĞƚĞƌŵŝŶĞĚƚŽďĞĐŽŵƉůŝĂŶƚďLJŵĞĞƚŝŶŐƚŚĞZ&WƌĞƋƵŝƌĞŵĞŶƚĂƐŝŶĚŝĐĂƚĞĚŚĞƌĞŝŶǁŝůů ƉƌŽĐĞĞĚƚŽƚŚĞŶĞdžƚƉŚĂƐĞŽĨƚŚĞĞǀĂůƵĂƚŝŽŶƉƌŽĐĞƐƐ͘
s>hd/KEd/s/d/
^
ŽŵƉůŝĂŶƚZ&WƌĞƐƉŽŶƐĞƐƉƌŽĐĞĞĚŝŶŐƚŽƚŚĞŶĞdžƚƉŚĂƐĞŽĨƚŚĞĞǀĂůƵĂƚŝŽŶƉƌŽĐĞƐƐĂƌĞƚŚĞŶĞǀĂůƵĂƚĞĚďLJĂŶ
ǀĂůƵĂƚŝŽŶŽŵŵŝƚƚĞĞ͘dŚĞZ&WƐƵďŵŝƚƚĂůƐĂƌĞƐĐŽƌĞĚĂŶĚĂƐƐŝŐŶĞĚĂƌĂŶŬŝŶŐŽĨŽŶĞ;ϭͿƚŚƌŽƵŐŚƚĞŶ;ϭϬͿ͕ƚĞŶ ďĞŝŶŐƚŚĞŚŝŐŚĞƐƚƉŽƐƐŝďůĞƐĐŽƌĞ͘dŚĞĨŽůůŽǁŝŶŐĐƌŝƚĞƌŝĂŚĂǀĞďĞĞŶĂƐƐŝŐŶĞĚƉĞƌĐĞŶƚĂŐĞƐƚŚĂƚƚŚĞĐƌŝƚĞƌŝĂǁŝůů ďĞƐĐŽƌĞĚĂŐĂŝŶƐƚ͕ďĂƐĞĚƵƉŽŶďƵƚŶŽƚůŝŵŝƚĞĚƚŽƚŚĞĨŽůůŽǁŝŶŐĞǀĂůƵĂƚŝŽŶĐƌŝƚĞƌŝĂĨĂĐƚŽƌƐ͗
ƌŝƚĞƌŝĂ
ƌŝƚĞƌŝĂĞƐĐƌŝƉƚŝŽŶƐƐŝŐŶĞĚWĞƌĐĞŶƚĂŐĞ
sĞŶĚŽƌ
džƉĞƌŝĞŶĐĞϭϱй
YƵĂůŝƚLJŽĨƉƌŽƉŽƐĞĚƐĞƌǀŝĐĞƐŽƌŐŽŽĚƐϭϱй
džƚĞŶƚƚŽǁŚŝĐŚƚŚĞsĞŶĚŽƌ͛ƐƐĞƌǀŝĐĞƐŽƌŐŽŽĚƐŵĞĞƚƚŚĞŝƚLJ͛ƐŶĞĞĚƐ
ϮϬй
ŽƐƚ Ϯϱй
ŵƉůŽLJĞĞdƌĂŝŶŝŶŐ
x^ĂĨĞƚLJdƌĂŝŶŝŶŐ
xƵƐƚŽŵĞƌ^ĞƌǀŝĐĞdƌĂŝŶŝŶŐ
ϱй
ŽƌƉŽƌĂƚĞĂƉĂďŝůŝƚLJ͗
xYƵĂůŝĨŝĐĂƚŝŽŶƐŽĨƐƚĂĨĨ
x>ŝĐĞŶƐŝŶŐƌĞƋƵŝƌĞĚƚŽƉĞƌĨŽƌŵǀĂƌŝŽƵƐƚƌĞĞŵĂŝŶƚĞŶĂŶĐĞ ƐĞƌǀŝĐĞƐ
ϱй
^ĞƌǀŝĐĞƐKĨĨĞƌĞĚƚŽƚŚĞŝƚLJ͗
xWƌŽƉŽƐĞĚƉƌŽŐƌĂŵ
xĞƚĂŝůĞĚůŝƐƚŽĨƐĞƌǀŝĐĞƐ
xďŝůŝƚLJƚŽƉƌŽǀŝĚĞƐĞƌǀŝĐĞƐ
ϱй
ƋƵŝƉŵĞŶƚ
ǀĂůƵĂƚŝŽŶ
x>ŝƐƚŽĨ
ƋƵŝƉŵĞŶƚ
xĞƌŝĂůĚĞǀŝĐĞĐĞƌƚŝĨŝĐĂƚŝŽŶ
ϱй
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϯŽĨϰϯ
/ŶĨŽƌŵĂƚŝŽŶDĂŶĂŐĞŵĞŶƚ
xDĞƚŚŽĚĨŽƌĐŽŵƉůĞƚŝŶŐĂŶĚƵƉĚĂƚŝŶŐƚŚĞŝƚLJ͛ƐƚƌĞĞŝŶǀĞŶƚŽƌLJ ƉƌŽŐƌĂŵ
xĂĐŬƵƉŝŶǀĞŶƚŽƌLJƐŽĨƚǁĂƌĞƉƌŽǀŝĚĞĚƚŽƚŚĞŝƚLJ
xdĞĐŚŶŝĐĂůƐƵƉƉŽƌƚĨŽƌĂůůƐŽĨƚǁĂƌĞĂŶĚĚĂƚĂŵĂŶĂŐĞŵĞŶƚ ϱй
ϱ͘ϯ K^d
s>hd/KE
ŽƐƚWƌŽƉŽƐĂůƐĂƌĞĞǀĂůƵĂƚĞĚĂŶĚƐĐŽƌĞĚďĂƐĞĚŽŶƚŚĞĨŽůůŽǁŝŶŐĐĂůĐƵůĂƚŝŽŶƐ͖ ^ĐŽƌĞс>ŽǁĞƐƚWƌŽƉŽƐĂůŽƐƚͬŽƐƚŽĨWƌŽƉŽƐĂůďĞŝŶŐƐĐŽƌĞĚyDĂdžŝŵƵŵWŽŝŶƚƐǀĂŝůĂďůĞ;ϭϬͿ dŚĞƐĐŽƌĞŝƐƚŚĞŶĂĚĚĞĚƚŽƚŚĞƐƉƌĞĂĚƐŚĞĞƚĐƌŝƚĞƌŝĂƐĐŽƌĞƐ͘
ϱ͘ϰZ
&
Z
E
,
KhD
Edd/KE
sĞŶĚŽƌƐƚŚĂƚƉƌŽĐĞĞĚƚŽƚŚĞƐŚŽƌƚͲůŝƐƚŵĂLJďĞƌĞƋƵŝƌĞĚƚŽƐƵďŵŝƚĨŝŶĂŶĐŝĂůĚŽĐƵŵĞŶƚĂƚŝŽŶĂƐƉƌŽŽĨŽĨŝƚƐĨŝƌŵ͛Ɛ ĨŝŶĂŶĐŝĂůƐƚĂďŝůŝƚLJĂŶĚƐƚƌĞŶŐƚŚ͘ĨŝŶĂŶĐŝĂůƌĞǀŝĞǁǁŝůůďĞĐŽŶĚƵĐƚĞĚďLJƚŚĞŝƚLJ&ŝŶĂŶĐĞĞƉĂƌƚŵĞŶƚ͘^ŚŽƵůĚ ĂsĞŶĚŽƌǁŝƐŚĨŽƌŝƚƐĨŝŶĂŶĐŝĂůĚŽĐƵŵĞŶƚĂƚŝŽŶƚŽďĞƚƌĞĂƚĞĚĂƐƉƌŽƉƌŝĞƚĂƌLJŽƌďĞƌĞƚƵƌŶĞĚƵƉŽŶĐŽŵƉůĞƚŝŽŶŽĨ
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϰŽĨϰϯ
ƚŚĞƌĞǀŝĞǁ͕ƚŚĞĚŽĐƵŵĞŶƚĂƚŝŽŶŵƵƐƚĐůĞĂƌůLJďĞŵĂƌŬĞĚĂƐƐƵĐŚ͘dŚĞĨŽůůŽǁŝŶŐĚŽĐƵŵĞŶƚĂƚŝŽŶǁŝůůďĞƌĞƋƵŝƌĞĚ ŽĨĞĂĐŚsĞŶĚŽƌŽŶƚŚĞƐŚŽƌƚͲůŝƐƚ͗
xĐŽƉLJŽĨƚŚĞsĞŶĚŽƌ͛ƐŵŽƐƚƌĞĐĞŶƚĂŶŶƵĂůƌĞƉŽƌƚ͘
xƵĚŝƚĞĚ;ďLJĂƚŚŝƌĚƉĂƌƚLJͿ͕ďĂůĂŶĐĞƐŚĞĞƚƐĂŶĚŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞƉĂƐƚƚŚƌĞĞ;ϯͿLJĞĂƌƐ͘ x/ĨĂƵĚŝƚĞĚĚĂƚĂŝƐŶŽƚĂǀĂŝůĂďůĞ͕sĞŶĚŽƌƐŚĂůůƐƵďŵŝƚĐŽƉŝĞƐŽĨĐŽŵƉůĞƚĞƚĂdžƌĞƚƵƌŶƐĨŽƌƚŚĞ ƉĂƐƚƚŚƌĞĞ;ϯͿLJĞĂƌƐ͘
xĞƐĐƌŝďĞĂŶLJƌĞŐƵůĂƚŽƌLJĐĞŶƐƵƌĞĂŶĚƉĂƐƚŽƌƉĞŶĚŝŶŐůŝƚŝŐĂƚŝŽŶƌĞůĂƚĞĚƚŽƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚ ďLJƚŚĞsĞŶĚŽƌ͘
x/ŶĚŝĐĂƚĞĂůůĂƉƉůŝĐĂďůĞŝŶĨŽƌŵĂƚŝŽŶƌĞŐĂƌĚŝŶŐsĞŶĚŽƌŽǁŶĞƌƐŚŝƉĐŚĂŶŐĞƐŝŶƚŚĞůĂƐƚƚŚƌĞĞ;ϯͿ LJĞĂƌƐ͘
ϱ͘ϳ
^dE&/E>K&&
Z
hƉŽŶĐŽŵƉůĞƚŝŽŶŽĨsĞŶĚŽƌƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ƚŚĞŝƚLJƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽĐŽŶĚƵĐƚƉƌĞͲĂǁĂƌĚĚŝƐĐƵƐƐŝŽŶƐĂŶĚͬŽƌ ƉƌĞͲĐŽŶƚƌĂĐƚŶĞŐŽƚŝĂƚŝŽŶƐǁŝƚŚĂůůŽƌŽŶůLJƚŽƉƌĂŶŬĞĚsĞŶĚŽƌƐ͘ƚǁŚŝĐŚƚŝŵĞƚŚĞŝƚLJŵĂLJƌĞƋƵĞƐƚĂĞƐƚĂŶĚ &ŝŶĂůKĨĨĞƌƚŽďĞƐƵďŵŝƚƚĞĚĨƌŽŵŽŶĞŽƌĂůůĨŝŶĂůŝƐƚƐ͘
ϱ͘ϴs
EKZ^
>
d/KE
dŚĞĨŝŶĂůsĞŶĚŽƌƐĞůĞĐƚŝŽŶŝƐďĂƐĞĚŽŶǁŚŝĐŚsĞŶĚŽƌŝƐƚŚĞŵŽƐƚƌĞƐƉŽŶƐŝǀĞ͕ŵĞĞƚŝŶŐƚŚĞŝƚLJ͛ƐƌĞƋƵŝƌĞŵĞŶƚƐ͕ ŽĨĨĞƌŝŶŐƚŚĞďĞƐƚǀĂůƵĞĂƚƚŚĞŵŽƐƚĐŽŵƉĞƚŝƚŝǀĞƉƌŝĐĞ͘dŚĞŝƚLJŝƐŶŽƚŽďůŝŐĂƚĞĚƚŽĂǁĂƌĚƚŽƚŚĞůŽǁĞƐƚƉƌŝĐĞ ƉƌŽƉŽƐĂů͘
dŚĞŝƚLJŵĂLJĐŽŶĚƵĐƚŶĞŐŽƚŝĂƚŝŽŶƐǁŝƚŚƐĞǀĞƌĂůsĞŶĚŽƌƐƐŝŵƵůƚĂŶĞŽƵƐůLJ͘dŚĞŝƚLJŵĂLJĂůƐŽŶĞŐŽƚŝĂƚĞĐŽŶƚƌĂĐƚ ƚĞƌŵƐǁŝƚŚƚŚĞƐĞůĞĐƚĞĚsĞŶĚŽƌƐƉƌŝŽƌƚŽĂǁĂƌĚ͘dŚĞŝƚLJ͕ĂƚŝƚƐƐŽůĞĚŝƐĐƌĞƚŝŽŶ͕ƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚ͕ƵŶůĞƐƐ ŽƚŚĞƌǁŝƐĞƐƚĂƚĞĚ͕ƚŽĂĐĐĞƉƚŽƌƌĞũĞĐƚĂůůŽƌĂŶLJZ&WƌĞƐƉŽŶƐĞƐ͕ŽƌĂŶLJƉĂƌƚƚŚĞƌĞŽĨ͕ĞŝƚŚĞƌƐĞƉĂƌĂƚĞůLJŽƌƚŽǁĂŝǀĞ ĂŶLJŝŶĨŽƌŵĂůŝƚLJĂŶĚƚŽƐƉůŝƚŽƌŵĂŬĞƚŚĞĂǁĂƌĚŝŶĂŶLJŵĂŶŶĞƌĚĞƚĞƌŵŝŶĞĚƚŽďĞŝŶƚŚĞďĞƐƚŝŶƚĞƌĞƐƚŽĨƚŚĞŝƚLJ͘
ϱ͘ϵ>
dd
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EddKtZ
ĨƚĞƌĂĨŝŶĂůsĞŶĚŽƌƐĞůĞĐƚŝŽŶŝƐĚĞƚĞƌŵŝŶĞĚ͕Ă>ĞƚƚĞƌŽĨ/ŶƚĞŶƚƚŽǁĂƌĚ;>K/ͿǁŝůůďĞƉŽƐƚĞĚĨŽƌƌĞǀŝĞǁďLJĂůů ƉĂƌƚŝĐŝƉĂƚŝŶŐ͕ ƌĞƐƉŽŶƐŝǀĞ sĞŶĚŽƌƐ͘ EĞŐŽƚŝĂƚŝŽŶƐ ƐŚĂůů ďĞ ĐŽŶĨŝĚĞŶƚŝĂů ĂŶĚ ŶŽƚ ƐƵďũĞĐƚ ƚŽ ĚŝƐĐůŽƐƵƌĞ ƚŽ ĐŽŵƉĞƚŝŶŐsĞŶĚŽƌƐƵŶůĞƐƐĂŶĂŐƌĞĞŵĞŶƚŝƐƌĞĂĐŚĞĚ͘/ĨĐŽŶƚƌĂĐƚŶĞŐŽƚŝĂƚŝŽŶƐĐĂŶŶŽƚďĞĐŽŶĐůƵĚĞĚƐƵĐĐĞƐƐĨƵůůLJ͕ ŝƚLJŵĂLJŶĞŐŽƚŝĂƚĞĂĐŽŶƚƌĂĐƚǁŝƚŚƚŚĞŶĞdžƚŚŝŐŚĞƐƚƐĐŽƌŝŶŐsĞŶĚŽƌŽƌǁŝƚŚĚƌĂǁƚŚĞZ&WĞŶƚŝƌĞůLJ͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϱŽĨϰϯ
͞
y,//d͟/dzK&ZE,KhDKE'KE&>/dK&/Ed
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^dͬEKEͲ/^>K^hZ
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Ed
/ƚŝƐƚŚĞƉŽůŝĐLJŽĨƚŚĞŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂƚŽƉƌĞǀĞŶƚƉĞƌƐŽŶĂůŽƌŽƌŐĂŶŝnjĂƚŝŽŶĂůĐŽŶĨůŝĐƚŽĨŝŶƚĞƌĞƐƚ͕Žƌ ƚŚĞĂƉƉĞĂƌĂŶĐĞŽĨƐƵĐŚĐŽŶĨůŝĐƚŽĨŝŶƚĞƌĞƐƚ͕ŝŶƚŚĞĂǁĂƌĚĂŶĚĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨŝƚLJŽŶƚƌĂĐƚƐ͕ŝŶĐůƵĚŝŶŐ͕ďƵƚ ŶŽƚůŝŵŝƚĞĚƚŽŽŶƚƌĂĐƚƐĨŽƌWƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐŐƌĞĞŵĞŶƚƐ;͞W^͟ͿǁŝƚŚƉŽƚĞŶƚŝĂůsĞŶĚŽƌƐ͘
/ĚŽŶŽƚŚĂǀĞƐƉĞĐŝĨŝĐŬŶŽǁůĞĚŐĞŽĨĐŽŶĨŝĚĞŶƚŝĂůŝŶĨŽƌŵĂƚŝŽŶƌĞŐĂƌĚŝŶŐZ&WƌĞƐƉŽŶƐĞƐƌĞĐĞŝǀĞĚŝŶƌĞƐƉŽŶƐĞƚŽ ƚŚĞZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂů;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳĨŽƌŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ͘
/ĂŐƌĞĞŶŽƚƚŽĚŝƐĐůŽƐĞŽƌŽƚŚĞƌǁŝƐĞĚŝǀƵůŐĞĂŶLJŝŶĨŽƌŵĂƚŝŽŶƉĞƌƚĂŝŶŝŶŐƚŽƚŚĞĐŽŶƚĞŶƚƐ͕ƐƚĂƚƵƐ͕ŽƌƌĂŶŬŝŶŐŽĨ ĂŶLJZ&WƌĞƐƉŽŶƐĞƚŽĂŶLJŽŶĞ͘/ƵŶĚĞƌƐƚĂŶĚƚŚĞƚĞƌŵƐĂŶĚΗĚŝƐĐůŽƐĞŽƌŽƚŚĞƌǁŝƐĞĚŝǀƵůŐĞΗƚŽŝŶĐůƵĚĞ͕ďƵƚĂƌĞŶŽƚ ůŝŵŝƚĞĚƚŽ͕ǀĞƌďĂůĐŽŶǀĞƌƐĂƚŝŽŶƐ͕ǁƌŝƚƚĞŶĐŽƌƌĞƐƉŽŶĚĞŶĐĞ͕ƌĞƉƌŽĚƵĐƚŝŽŶŽĨĂŶLJƉĂƌƚŽƌĂŶLJƉŽƌƚŝŽŶŽĨĂŶLJZ&W ƌĞƐƉŽŶƐĞ͕ŽƌƌĞŵŽǀĂůŽĨƐĂŵĞĨƌŽŵĚĞƐŝŐŶĂƚĞĚĂƌĞĂƐ͘
/͕ƚŚĞƵŶĚĞƌƐŝŐŶĞĚ͕ŚĞƌĞďLJĐĞƌƚŝĨLJƚŚĂƚƚŚĞĨŽůůŽǁŝŶŐƐƚĂƚĞŵĞŶƚƐĂƌĞƚƌƵĞĂŶĚĐŽƌƌĞĐƚĂŶĚƚŚĂƚ/ƵŶĚĞƌƐƚĂŶĚ ĂŶĚĂŐƌĞĞƚŽďĞďŽƵŶĚďLJĐŽŵŵŝƚŵĞŶƚƐĐŽŶƚĂŝŶĞĚŚĞƌĞŝŶ͘
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;WƌŝŶƚEĂŵĞͿ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;ZĞůĂƚŝŽŶƐŚŝƉƚŽƚŚĞŝƚLJͿ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;ZĞůĂƚŝŽŶƐŚŝƉƚŽƚŚĞsĞŶĚŽƌƐͿ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;^ŝŐŶĂƚƵƌĞͿ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ;ĂƚĞͿ
DƵƐƚďĞŝŶĐůƵĚĞĚŝŶĨŝŶĂůZ&WƐƵďŵŝƚƚĂů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϲŽĨϰϯ
͞
y,//d͟WZK&
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DĂƌŬƚŚĞĂƉƉƌŽƉƌŝĂƚĞĐŚŽŝĐĞ͕ďĞůŽǁ͗
ͺͺͺͺͺsĞŶĚŽƌƐĂĐĐĞƉƚƐƚŚĞW^ǁŝƚŚŽƵƚĞdžĐĞƉƚŝŽŶ͘
KZ
ͺͺͺͺͺsĞŶĚŽƌƐƉƌŽƉŽƐĞƐĞdžĐĞƉƚŝŽŶƐƚŽƚŚĞW^͘
^ƵŵŵĂƌŝnjĞĂůůĞdžĐĞƉƚŝŽŶƐŽŶĂƐĞƉĂƌĂƚĞĚŽĐƵŵĞŶƚ͘
ŶĐůŽƐĞĂǁƌŝƚƚĞŶƐƵŵŵĂƌLJŽĨĞĂĐŚĐŚĂŶŐĞĂŶĚƚŝƚůĞĂƐ
͞
džĐĞƉƚŝŽŶ^ƵŵŵĂƌLJ͕͟ǁŚŝĐŚƐŚĂůůŝŶĐůƵĚĞƚŚĞsĞŶĚŽƌƐ͛ƌĂƚŝŽŶĂůĞĨŽƌƉƌŽƉŽƐŝŶŐĞĂĐŚƐƵĐŚĞdžĐĞƉƚŝŽŶ͘ ĂĐŚ
ĞdžĐĞƉƚŝŽŶŵƵƐƚďĞůĂďĞůĞĚǁŝƚŚƚŚĞ^ĞĐƚŝŽŶŶƵŵďĞƌŝŶƚŚĞW^͘&ĂŝůƵƌĞƚŽƉƌŽƉĞƌůLJƌĞĨĞƌĞŶĐĞĞdžĐĞƉƚŝŽŶƐŝŶƚŚĞ ƐƵďŵŝƚƚĞĚƐƵŵŵĂƌLJŵĂLJĚĞĞŵƚŚĞƌĞƐƉŽŶƐĞĂƐŶŽŶͲƌĞƐƉŽŶƐŝǀĞ͘
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
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ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
WƌŝŶƚĞĚEĂŵĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
dŝƚůĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ĂƚĞ
DƵƐƚďĞŝŶĐůƵĚĞĚŝŶĨŝŶĂůZ&WƐƵďŵŝƚƚĂů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
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͞
y,//d͟
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ŽĨͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ͕ĐĞƌƚŝĨLJƚŚĂƚƚŚĞ ;EĂŵĞŽĨŽŵƉĂŶLJ͕ŽƌƉŽƌĂƚŝŽŶŽƌKǁŶĞƌͿ
^ƉĞĐŝĨŝĐĂƚŝŽŶƐĂŶĚ'ĞŶĞƌĂůWƌŽǀŝƐŝŽŶƐƌĞŐĂƌĚŝŶŐŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐĂƐƐƚĂƚĞĚǁŝƚŚŝŶƚŚĞWƌŽĨĞƐƐŝŽŶĂů ^ĞƌǀŝĐĞƐŐƌĞĞŵĞŶƚ;W^Ϳ͕ĨŽƌƚŚĞWƵƌĐŚĂƐĞŽŶƚƌĂĐƚĚĞƐŝŐŶĂƚĞĚZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂů;͞Z&W͟ͿĨŽƌηϭϵͬϮϬͲϬϬϳ ĨŽƌŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐŚĂǀĞďĞĞŶƌĞĂĚĂŶĚƵŶĚĞƌƐƚŽŽĚĂŶĚƚŚĂƚŽƵƌsĞŶĚŽƌƐŝƐĂďůĞƚŽ ƉƌŽǀŝĚĞĂŶĚŵĂŝŶƚĂŝŶƚŚĞĐŽǀĞƌĂŐĞĂƐƐƉĞĐŝĨŝĞĚŝŶƚŚĞW^͘&ĂŝůƵƌĞƚŽƉƌŽǀŝĚĞƐĂŝĚĐŽǀĞƌĂŐĞ͕ƵƉŽŶƌĞƋƵĞƐƚƚŽ ĨŝŶĂůŝnjĞƚŚĞW^ƉƌŝŽƌƚŽĂǁĂƌĚƐŚĂůůďĞƐƵĨĨŝĐŝĞŶƚĐĂƵƐĞĨŽƌŝŵŵĞĚŝĂƚĞĚŝƐƋƵĂůŝĨŝĐĂƚŝŽŶŽĨĂǁĂƌĚ͘&ĂŝůƵƌĞƚŽ ŵĂŝŶƚĂŝŶƐĂŝĚĐŽǀĞƌĂŐĞƐŚĂůůƌĞƐƵůƚŝŶƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚĞĐŽŶƚƌĂĐƚ͘
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
^ŝŐŶĂƚƵƌĞ
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WƌŝŶƚĞĚEĂŵĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
dŝƚůĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ĂƚĞ DƵƐƚďĞŝŶĐůƵĚĞĚŝŶĨŝŶĂůZ&WƐƵďŵŝƚƚĂů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϯϴŽĨϰϯ
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y,//d͟
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dŚĞsĞŶĚŽƌƐŚĞƌĞďLJĂĐŬŶŽǁůĞĚŐĞƐƚŚĞĨŽůůŽǁŝŶŐĚĚĞŶĚĂEƵŵďĞƌ;ƐͿƚŽƚŚŝƐZ&WŚĂǀĞďĞĞŶƌĞĐĞŝǀĞĚ͕ŝĨĂŶLJ͘ sĞŶĚŽƌƐƵŶĚĞƌƐƚĂŶĚƐĨĂŝůƵƌĞƚŽĂĐŬŶŽǁůĞĚŐĞĂŶLJĂĚĚĞŶĚĂŝƐƐƵĞĚŵĂLJĐĂƵƐĞƚŚĞZ&WƌĞƐƉŽŶƐĞƚŽďĞĐŽŶƐŝĚĞƌĞĚ ŶŽŶͲƌĞƐƉŽŶƐŝǀĞ͘/ƚŝƐƚŚĞsĞŶĚŽƌƐ͛ƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽůŽŐŝŶƚŽƚŚĞŝĚ^LJƐƚĞŵƚŽŝĚĞŶƚŝĨLJĂŶĚĚŽǁŶůŽĂĚƚŚĞ ŶƵŵďĞƌŽĨĂĚĚĞŶĚĂƚŚĂƚŚĂǀĞďĞĞŶƉŽƐƚĞĚ͘
xͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
xͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
xͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
xͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
^ŝŐŶĂƚƵƌĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
WƌŝŶƚĞĚEĂŵĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
dŝƚůĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ĂƚĞ
DƵƐƚďĞŝŶĐůƵĚĞĚŝŶĨŝŶĂůZ&WƐƵďŵŝƚƚĂů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
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y,//d
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Zd/&/d/KE&KZD
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ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
^ŝŐŶĂƚƵƌĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
WƌŝŶƚĞĚEĂŵĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
dŝƚůĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ĂƚĞ
DƵƐƚďĞŝŶĐůƵĚĞĚŝŶĨŝŶĂůZ&WƐƵďŵŝƚƚĂů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉ͘ŵ͘ WĂŐĞϰϬŽĨϰϯ
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ĂŐĞŶĐLJƐŚĂůůĂĐĐĞƉƚƐŽůĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨŝƚƐŽǁŶŽƌĚĞƌƉůĂĐĞŵĞŶƚĂŶĚƉĂLJŵĞŶƚƐŽĨƚŚĞsĞŶĚŽƌƐ͘
^ƵĐĐĞƐƐĨƵůsĞŶĚŽƌƐǁŝůůĞdžƚĞŶĚƉƌŝĐĞƐĂƐƉƌŽƉŽƐĞĚŚĞƌĞŝŶƚŽŽƚŚĞƌŐŽǀĞƌŶŵĞŶƚĂůĂŐĞŶĐŝĞƐ͕ƉůĞĂƐĞ ƐƉĞĐŝĨLJ͘
z
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DƵƐƚďĞŝŶĐůƵĚĞĚŝŶĨŝŶĂůZ&WƐƵďŵŝƚƚĂů͘
ŝƚLJŽĨZĂŶĐŚŽƵĐĂŵŽŶŐĂ
ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ;͞Z&W͟ͿηϭϵͬϮϬͲϬϬϳ
ĨŽƌ
ŝƚLJǁŝĚĞdƌĞĞDĂŝŶƚĞŶĂŶĐĞ^ĞƌǀŝĐĞƐ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ƵďŵŝƚƚĂůƐƵĞ͗:ƵůLJϮϰ͕ϮϬϭϵďLJϯ͗ϬϬƉŵ WĂŐĞϰϭŽĨϰϯ
͞
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REQUEST FOR PROPOSALS (“RFP”)
#1ϵ/ϮϬ-007 FOR
CITYWIDE TREE MAINTENANCE SERVICES
APPENDICES A - H
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #ϭϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
APPENDIX A - FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENT: THAT as Principal, and , as Surety, are held and firmly bound unto the City of Rancho Cucamonga, hereinafter called City, in the just and full amount of (Written) $ (Figures) payment whereof we hereby bind ourselves, our heirs, executor’s administrators, successors and assigns, jointly and severally, firmly by these presents. Given under our hands and sealed with our seal this day of , 20 .
The condition of the foregoing obligation is such that, WHEREAS, the above-named principal is about to enter into a contract with the City, whereby said principal agrees to construct “CITYWIDE TREE MAINTENANCE SERIVCES” in accordance with the AGREEMENT dated , which said contract is hereby referred to and made a part hereof to the same extent as if the same were herein specifically set forth; NOW, THEREFORE, if the said principal shall well and truly do and perform all things agreed by the principal in said contract to be done and performed, then this obligation is to be void; otherwise it will remain in full force and effect;
PROVIDED, that for value received the undersigned stipulate and agree that no amendment, change, extension of time, alteration or addition to said contract, or agreement, or of any feature or item or items of performance required therein or thereunder shall in any manner affect the obligations of the undersigned under this bond; and the surety does hereby waive notice of such amendment, limitation of time for bringing action on this bond by the City, change, extension of time, alteration or addition to said contract or agreement and of any feature or time of performance required therein or thereunder.
WITNESS our hands this day of , 20 .
By: Title:
Surety: By:
Individual Partnership Corporation
Other, explain
SIGNATURES OF CONTRACTOR MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC. PLEASE ATTACH APPROPRIATE ACKNOWLEDGMENT FORMS (INDIVIDUAL, PARTNERSHIP, CORPORATION, ETC.).
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
APPENDIX B – PAYMENT BOND
(LABOR and MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the CITY OF RANCHO CUCAMONGA (“City”) has awarded to (Name and address of Contractor) (“Principal”), a contract (the “Contract”) for the work described as follows: “CITYWIDE TREE MAINTENANCE SERVICES”.
WHEREAS, Principal is required under the terms of the Contract and the California Civil Code to secure the payment of claims of laborers, mechanics, materialmen, and other persons as provided by law.
NOW THEREFORE, we, the undersigned Principal, and (Name and address of Surety (“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto City in the penal sum of ($ ), this amount being not less than one hundred percent (100%) of the total contract price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, or subcontractors shall fail to pay any of the persons named in Section 9100 of the California Civil Code, or any amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Principal and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with respect to work or labor performed under the Contract, the Surety will pay for the same in an amount not exceeding the penal sum specified in this bond; otherwise, this obligation shall become null and void.
This bond shall insure to the benefit of any of the persons named in Section 9100 of the California Civil Code to give a right of action to such persons or their assigns in any suit brought upon the bond. In case the suit is brought upon this bond, Surety further agrees to pay all court costs and reasonable attorneys’ fees in an amount fixed by the court.
FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms of the Contract, or of the work to be performed thereunder, or the specifications for the same, shall in any way affect its obligations under this bond, and it does hereby waive notice of any such change, extension of time, alteration, addition, or modification to the terms of the Contract or to the work or to the specifications thereunder. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
set forth below, the name of each corporate party being hereto affixed, and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Date:
_______________ ____________
“Principal Signature” “Surety Signature”
_______________ ____________
“Principal Signature” “Surety Signature”
By: ________ By: ___________
By: _________ By: ___________
(Seal) (Seal)
Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached.
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
APPENDIX C – TREE PRUNING METHODS
REASONS FOR PRUNING
The goals set forth in pruning are to improve tree structure, reduce hazards; provide clearances, and increase light and air penetration.
PRUNING CUTS
(a) Each cut should be made carefully, at the correct location, leaving a smooth surface with no jagged edges or torn bark.
(b) When pruning lateral branches, the final cut should be made back to the parent branch or trunk, just to the outside of the branch collar and branch bark ridge. When removing a dead branch, the final cut should be made just outside the collar of living tissue. If the collar has grown along a branch stub, only the dead stub should be removed (Figure A1). (c) To prevent bark tearing, large limbs should be removed using the three-cut method. The first cut undercuts the limb one or two feet out from the parent branch or trunk. The second cut, made on the top, is positioned slightly farther out than the undercut. The third cut is to remove the stub (Figure A2).
(d) When it is necessary to reduce the length of the parent branch or leader, it should be cut back to a lateral branch that is large enough to sustain itself and to assume apical dominance. The cut should bisect the angle between the branch bark ridge and an imaginary line perpendicular to the branch or stem being removed (Figure A3).
Figure A1 – Pruning lateral branches
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #ϭϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
Figure A2 – The three-cut method
Figure A3 – Limb reduction
STRUCTURAL PRUNING OF YOUNG TREES
No more than 25 percent of the canopy should be removed in any one year. (a) Remove any broken, dead, dying, or damaged branches. (b) Select and establish a dominant leader. This should be the strongest vertical stem. Co-dominant stems should be subordinated (cut back) or removed (Figure A4). (c) Select and establish the lowest permanent branch.
(d) Select and establish scaffold branches. These branches should be well attached, appropriate in size, and have proper vertical and radial spacing. The vertical spacing should be at least 18 inches for larger tree species and 12 inches for smaller species. (e) Select and subordinate temporary branches below the lowest permanent branch and among the scaffold branches. These branches should be maintained while the tree is young.
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
(f) Figure A4 – Removal of a co-dominant stem
CO-DOMINANT STEMS
If two branches develop from apical buds at the tip of the stem, they will form co-dominant stems. This type of branch structure produces narrow angles at the point of attachment that leads to the formation of included bark. This is bark that becomes enclosed inside the crotch as the two branches grow and develop. Included bark weakens the branch attachment, making the tree more prone to failure. It is best if one co-dominant stem is removed when the tree is young. When faced with large co-dominant branches in older trees, these should be suppressed by reducing the length of the least vigorous limb, thus slowing its growth. The relative size of a branch in relation to the trunk is more important for strength of branch attachment than is the angle of attachment.
PRUNING MATURE TREES
No more than 25 percent of the canopy should be removed in any one year. Pruning cuts should be kept as small as possible. The various pruning techniques are as follows. (a) Crown Cleaning: Selective removal of dead, dying, diseased, broken, or weakly attached branches.
(b) Crown Thinning: Includes crown cleaning as well as selective removal of branches to increase light and air penetration, reduce weight, and reduce wind-sail effect. The natural structure and shape of the tree should be preserved, and an even distribution of inner lateral branches should be maintained throughout the canopy. Care must be taken to avoid “lion tailing”, which is created when excessive laterals are removed from a limb, leaving most of foliage at the end, thus causing a weight imbalance.
(c) Crown Raise: The removal of lower branches to provide proper height clearances. It is imperative that the crown is not raised excessively. A properly raised tree should have a well-formed, tapered structure, which will be able to uniformly distribute stress; approximately one-half of the foliage should originate from branches on the lower two-thirds of the tree.
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
(d) Crown Reduction: Used to reduce the size of a tree. Limbs are cut back to their point of origin or to a lateral capable of sustaining the remaining limb and assuming apical dominance. When a branch is cut back to a lateral, no more than one-fourth of its foliage should be removed. The remaining lateral branch must be at least one-third the diameter of the branch removed, but this rule may vary with species, age, climate, and the condition of the tree. Consideration must also be given to the ability of the species to sustain this type of pruning. (e) Crown Restoration: Is the selective removal of water sprouts, and the removal of all stubs and dead limbs to improve a trees structure and form. This method of pruning is usually done because of storm damage or a previous topping. One to three vigorous sprouts on main branch stubs are selected to become permanent branches and to re-form a more natural-appearing crown. These sprouts may need to be subordinated to control apical growth and ensure adequate attachment for their size. Restoration usually requires several pruning jobs over several years.
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APPENDIX F – SPECIFICATIONS FOR PROCURING CONTAINER GROWN LANDSCAPE TREES
PROPER IDENTIFICATION
All trees shall be true to name as ordered or shown on the planting plans and shall be labeled individually or in groups by species and cultivar (where appropriate).
COMPLIANCE
All trees shall comply with federal and state laws and regulations requiring inspection for plant disease, pests and weeds.
TREE CHARACTERISTICS AT THE TIME OF SALE OR DELIVERY
A. TREE HEALTH
1. Trees shall be healthy and vigorous; free of injury from biotic (insects, pathogens, nematodes, etc.) and abiotic agents (herbicide toxicity, salt injury, improper irrigation, etc.).
2. The size, color and appearance of the leaves shall be typical for the time of year and stage of growth of the species/cultivar; and shall not be stunted, misshapen, tattered, discolored (chlorotic or necrotic) or otherwise atypical.
3. The length and diameter of shoot growth throughout the crown shall be typical for the age and size of the species/cultivar.
4. Overall height and trunk diameter shall be typical for the age, species/cultivar and container size.
B. CROWN
Central Leader: The best quality shade trees, and most evergreen trees, have a dominant or central leader or trunk that extends up to the top of the canopy. Shade trees of lesser quality have two or more leaders or trunks, which compete against each other. Branches that have narrow angles of attachment and co-dominant stems tend to break at the point of attachment, especially when associated with included bark. Trees purchased from the nursery should have a single, relatively straight central leader and tapered trunk, free of co-dominant stems that compete with the central leader. The central leader should not have been headed. However, in cases where the original leader has been removed, an upright branch at least ½ (one-half) the diameter of the original leader just below the pruning point shall be present.
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #18/19-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
Co-dominant stems with Included Bark
Form: The form or shape of the crown shall be symmetrical, and typical for the species/cultivar. The crown shall not be significantly deformed by wind, pruning practices, pests or other factors.
Branch Spacing:
1. Branches shall be distributed radially around and vertically along the trunk, forming a generally symmetrical crown typical for the species/cultivar.
2. Branches shall be no larger than 2/3 (two thirds) the diameter of the trunk, measured 1" (one inch) above the branch.
3. The attachment of scaffold branches shall be free of included bark.
Branch Diameter: shall be no larger than 2/3 (two thirds) the diameter of the trunk, measured 1" (one inch) above the branch.
Temporary branches: Unless otherwise specified, small "temporary" branches should be present along the trunk below and above the lowest main (scaffold) branch, particularly for trees less than 1-1/2" (one and one-half inches) in trunk diameter. Temporary branches should be distributed around and vertically
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #18/19-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
along the trunk and should be no greater than 3/8" (three-eighths inch) in diameter and no greater than ½ (one-half) the diameter of the trunk at the point of attachment. Heading of temporary branches is usually necessary to limit their growth.
Good branch spacing, with
temporary branches above and
below the lowest main branch.
Good trunk taper
C. TRUNK
1. Trunk diameter and taper shall be sufficient so that the tree will remain vertical without the support of a nursery stake.
2. The trunk shall be free of wounds (except properly-made pruning cuts), sunburned areas, conks (fungal fruiting-bodies), wood cracks, bleeding areas, signs of boring insects, galls, cankers and/or lesions.
3. Trunk diameter shall be within the range shown in the table below and shall be taken 6” (inches) above soil surface.
D. ROOTS
1. The trunk, root collar (root crown) and large roots shall be free of circling and/or kinked roots.
Soil removal near the root collar may be necessary to verify that circling and/or kinked roots are not present.
Container Size Trunk Diameter (inches)
5 gallons 0.5 to 0.75
15 gallons 0.75 to 1.5
24-inch box 1.5 to 2.5
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
2. The tree shall be well rooted in the container. When the container is removed, the root ball shall remain intact, and when the tree is lifted, the trunk and the root system shall move as one.
3. The upper-most roots or root collar shall be within 1" (one inch) above or below the soil surface.
The soil level should be within 2’ (two inches) of the top of the container (see table below).
Container Size Soil Level from Top of Container (inches) 5 gallons 1.25 to 2
15 gallons 1.75 to 2.75
24-inch box 2.25 to 3
4. The root ball periphery should be free of large circling and bottom-matted roots. The acceptable diameter of circling peripheral roots depends on species and size of root ball.
5. On grafted or budded trees, there shall be no suckers from the root stock.
E. MOISTURE STATUS
At time of inspection and delivery, the root ball shall be moist throughout, and the tree crown shall show no signs of moisture stress, as indicated by wilt. Roots shall show no signs of being subjected to excess soil moisture conditions, as indicated by root discoloration, distortion, death, or foul odor.
INSPECTION
The City of Rancho Cucamonga reserves the right to reject trees that do not meet specifications as set forth in these guidelines.
DELIVERY
Delivery shall be made at the agreed-upon date and time. The vendor shall notify the City, as soon as possible, of any delivery which becomes delayed due to extenuating circumstances.
City of Rancho Cucamonga and RCFPD
Request for Proposals (“RFP”) #1ϵ/ϮϬ-007 for Citywide Tree Maintenance Services Appendices A - H
___________________________________________________________________________________________
GLOSSARY
Co-dominant - Two or more vigorous and upright branches of relatively equal size that originate from a common point, usually where the leader has been lost or removed.
Crown - The aboveground part of the tree including the trunk.
Cultivar - A named plant selection from which identical or nearly identical plants can be produced, usually by vegetative propagation or cloning.
Girdling root - A root that partially or entirely encircles the trunk and/or buttress roots, which could restrict growth and downward movement of photosynthate and/or water and nutrients up.
Included bark - Bark embedded within the crotch between a branch and the trunk or between two or more stems that prevents the formation of a normal branch bark ridge. This often occurs in branches with narrow-angled attachments or branches resulting from the loss of the leader. Such attachments are weak and subject to splitting.
Kinked root – Is a primary root, which is sharply bent, causing a restriction to water, nutrient, and photosynthate movement. Kinked roots may compromise the structural stability of roots systems.
Leader - The dominant stem which usually develops into the main trunk.
Photosynthate - Pertains to sugar and other carbohydrates that are produced by the foliage during photosynthesis, an energy trapping process.
Root collar - The flared area at the base of a tree where the roots and trunk merge; also referred to as the "root crown" or "root flare".
Shall - Used to denote a practice that is mandatory.
Should - Used to denote a practice that is recommended.
Scaffold branches - Large, main branches that form the main structure of the tree.
Temporary branch - A small branch that is retained temporarily along the trunk of young trees.
Temporary branches provide photosynthate to increase trunk caliper and taper and help protect it from sunburn damage and mechanical injury. Such branches should be kept small and gradually removed as the trunk develops.
Trunk - The main stem or axis of a tree that is supported and nourished by the roots and to which branches are attached.