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d,/^'ZDEd͕ĚĂƚĞĚĨŽƌƌĞĨĞƌĞŶĐĞƉƵƌƉŽƐĞƐŽŶůLJĂƐDĂƌĐŚϭϳ͕ϮϬϮϲ͕ŝƐďLJĂŶĚďĞƚǁĞĞŶƚŚĞ
ŝƚLJŽĨZĞŶƚŽŶ;ƚŚĞ͞ŝƚLJ͟Ϳ͕Ăt ĂƐŚŝŶŐƚŽŶŵƵŶŝĐŝƉĂůĐŽƌƉŽƌĂƚŝŽŶ͕ĂŶĚ<ŝŵůĞLJͲ,ŽƌŶĂŶĚƐƐŽĐŝĂƚĞƐ
;͞ŽŶƐƵůƚĂŶƚ͟Ϳ͕ĂtĂƐŚŝŶŐƚŽŶĐŽƌƉŽƌĂƚŝŽŶ͘dŚĞŝƚLJĂŶĚƚŚĞŽŶƐƵůƚĂŶƚĂƌĞƌĞĨĞƌƌĞĚƚŽĐŽůůĞĐƚŝǀĞůLJ
ŝŶƚŚŝƐŐƌĞĞŵĞŶƚĂƐƚŚĞ͞WĂƌƚŝĞƐ͘͟KŶĐĞĨƵůůLJĞdžĞĐƵƚĞĚďLJƚŚĞWĂƌƚŝĞƐ͕ƚŚŝƐŐƌĞĞŵĞŶƚŝƐĞĨĨĞĐƚŝǀĞ
ĂƐŽĨƚŚĞůĂƐƚĚĂƚĞƐŝŐŶĞĚďLJďŽƚŚƉĂƌƚŝĞƐ͘
ϭ͘^ĐŽƉĞŽĨtŽƌŬ͗ŽŶƐƵůƚĂŶƚĂŐƌĞĞƐƚŽƉƌŽǀŝĚĞĐŽŶƐƵůƚŝŶŐ͕ĚĞƐŝŐŶ͕ďŝĚĚŝŶŐĂŶĚĐŽŶƐƚƌƵĐƚŝŽŶ
ƐƵƉƉŽƌƚƐĞƌǀŝĐĞƐĂƐƐƉĞĐŝĨŝĞĚŝŶdžŚŝďŝƚ͕ǁŚŝĐŚŝƐĂƚƚĂĐŚĞĚĂŶĚŝŶĐŽƌƉŽƌĂƚĞĚŚĞƌĞŝŶĂŶĚ
ŵĂLJŚĞƌĞŝŶĂĨƚĞƌďĞƌĞĨĞƌƌĞĚƚŽĂƐƚŚĞ͞tŽƌŬ͘͟
Ϯ͘ŚĂŶŐĞƐŝŶ^ĐŽƉĞŽĨtŽƌŬ͗dŚĞŝƚLJ͕ǁŝƚŚŽƵƚŝŶǀĂůŝĚĂƚŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͕ŵĂLJŽƌĚĞƌ
ĐŚĂŶŐĞƐƚŽƚŚĞtŽƌŬĐŽŶƐŝƐƚŝŶŐŽĨĂĚĚŝƚŝŽŶƐ͕ĚĞůĞƚŝŽŶƐŽƌŵŽĚŝĨ ŝĐĂƚŝŽŶƐ͘ŶLJƐƵĐŚĐŚĂŶŐĞƐ
ƚŽƚŚĞtŽƌŬƐŚĂůůďĞŽƌĚĞƌĞĚďLJƚŚĞŝƚLJŝŶǁƌŝƚŝŶŐĂŶĚƚŚĞŽŵƉĞŶƐĂƚŝŽŶƐŚĂůůďĞ
ĞƋƵŝƚĂďůLJĂĚũƵƐƚĞĚĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞƌĂƚĞƐƐĞƚĨŽƌƚŚŝŶdžŚŝď ŝƚŽƌĂƐŽƚŚĞƌǁŝƐĞŵƵƚƵĂůůLJ
ĂŐƌĞĞĚďLJƚŚĞWĂƌƚŝĞƐ͘
ϯ͘dŝŵĞ ŽĨ WĞƌĨŽƌŵĂŶĐĞ͗ ŽŶƐƵůƚĂŶƚ ƐŚĂůů ĐŽŵŵĞŶĐĞ ƉĞƌĨŽƌŵĂŶĐĞ ŽĨ ƚŚĞ ŐƌĞĞŵĞŶƚ
ƉƵƌƐƵĂŶƚƚŽƚŚĞƐĐŚĞĚƵůĞ;ƐͿƐĞƚĨŽƌƚŚŝŶdžŚŝďŝƚ͘ůůtŽƌŬƐŚĂůůďĞƉĞƌĨŽƌŵĞĚďLJŶŽůĂƚĞƌ
ƚŚĂŶĞĐĞŵďĞƌϯϭ͕ϮϬϮϳ͘
ϰ͘ŽŵƉĞŶƐĂƚŝŽŶ͗
͘ ŵŽƵŶƚ͘ dŽƚĂů ĐŽŵƉĞŶƐĂƚŝŽŶ ƚŽŽŶƐƵůƚĂŶƚ ĨŽƌ tŽƌŬ ƉƌŽǀŝĚĞĚ ƉƵƌƐƵĂŶƚ ƚŽ ƚŚŝƐ
ŐƌĞĞŵĞŶƚƐŚĂůůŶŽƚĞdžĐĞĞĚΨϰϳϳ͕ϲϬϬ͘ϬϬ͕ƉůƵƐĂŶLJĂƉƉůŝĐĂďůĞƐƚĂƚĞĂŶĚůŽĐĂůƐĂůĞƐ
ƚĂdžĞƐ͘ŽŵƉĞŶƐĂƚŝŽŶƐŚĂůůďĞƉĂŝĚďĂƐĞĚƵƉŽŶtŽƌŬĂĐƚƵĂůůLJƉĞƌĨŽƌŵĞĚĂĐĐŽƌĚŝŶŐƚŽ
ƚŚĞƌĂƚĞ;ƐͿŽƌĂŵŽƵŶƚƐƐƉĞĐŝĨŝĞĚŝŶdžŚŝďŝƚ͘dŚĞŽŶƐƵůƚĂŶƚĂŐƌĞĞƐƚŚĂƚĂŶLJŚŽƵƌůLJŽƌ
ĨůĂƚƌĂƚĞĐŚĂƌŐĞĚďLJŝƚĨŽƌŝƚƐtŽƌŬƐŚĂůůƌĞŵĂŝŶůŽĐŬĞĚĂƚƚŚĞŶĞŐŽƚŝĂƚĞĚƌĂƚĞ;ƐͿƵŶůĞƐƐ
ŽƚŚĞƌǁŝƐĞĂŐƌĞĞĚƚŽŝŶǁƌŝƚŝŶŐŽƌƉƌŽǀŝĚĞĚŝŶdžŚŝďŝƚ͘džĐĞƉƚĂƐƐƉĞĐŝĨŝĐĂůůLJƉƌŽǀŝĚĞĚ
ŚĞƌĞŝŶ͕ƚŚĞŽŶƐƵůƚĂŶƚƐŚĂůůďĞƐŽůĞůLJƌĞƐƉŽŶƐŝďůĞĨŽƌƉĂLJŵĞŶƚŽĨĂŶLJƚĂdžĞƐŝŵƉŽƐĞĚ
ĂƐĂƌĞƐƵůƚŽĨƚŚĞƉĞƌĨŽƌŵĂŶĐĞĂŶĚƉĂLJŵĞŶƚŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
͘ DĞƚŚŽĚŽĨWĂLJŵĞŶƚ͘KŶĂŵŽŶƚŚůLJŽƌŶŽůĞƐƐƚŚĂŶƋƵĂƌƚĞƌůLJďĂƐŝƐĚƵƌŝŶŐĂŶLJƋƵĂƌƚĞƌ
ŝŶǁŚŝĐŚtŽƌŬŝƐƉĞƌĨŽƌŵĞĚ͕ƚŚĞŽŶƐƵůƚĂŶƚƐŚĂůůƐƵďŵŝƚĂǀŽƵĐŚĞƌŽƌŝŶǀŽŝĐĞŝŶĂĨŽƌŵ
ƐƉĞĐŝĨŝĞĚďLJƚŚĞŝƚLJ͕ŝŶĐůƵĚŝŶŐĂĚĞƐĐƌŝƉƚŝŽŶŽĨǁŚĂƚtŽƌŬŚĂƐďĞĞŶƉĞƌĨŽƌŵĞĚ͕ƚŚĞ
ŶĂŵĞŽĨƚŚĞƉĞƌƐŽŶŶĞůƉĞƌĨŽƌŵŝŶŐƐƵĐŚtŽƌŬ͕ĂŶĚĂŶLJŚŽƵƌůLJůĂďŽƌĐŚĂƌŐĞƌĂƚĞĨŽƌ
CAG-26-083
W'ϮK&ϭϬ
ƐƵĐŚƉĞƌƐŽŶŶĞů͘dŚĞŽŶƐƵůƚĂŶƚƐŚĂůůĂůƐŽƐƵďŵŝƚĂĨŝŶĂůďŝůůƵƉŽŶĐŽŵƉůĞƚŝŽŶŽĨĂůů
tŽƌŬ͘WĂLJŵĞŶƚƐŚĂůůďĞŵĂĚĞďLJƚŚĞŝƚLJĨŽƌtŽƌŬƉĞƌĨŽƌŵĞĚǁŝƚŚŝŶƚŚŝƌƚLJ;ϯϬͿ
ĐĂůĞŶĚĂƌĚĂLJƐĂĨƚĞƌƌĞĐĞŝƉƚĂŶĚĂƉƉƌŽǀĂůďLJƚŚĞĂƉƉƌŽƉƌŝĂƚĞŝƚLJƌĞƉƌĞƐĞŶƚĂƚŝǀĞŽĨƚŚĞ
ǀŽƵĐŚĞƌŽƌŝŶǀŽŝĐĞ͘/ĨƚŚĞŽŶƐƵůƚĂŶƚ͛ƐƉĞƌĨŽƌŵĂŶĐĞĚŽĞƐŶŽƚŵĞĞƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐ
ŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕ƚŚĞŽŶƐƵůƚĂŶƚǁŝůůĐŽƌƌĞĐƚŽƌŵŽĚŝĨLJŝƚƐƉĞƌĨŽƌŵĂŶĐĞƚŽĐŽŵƉůLJ
ǁŝƚŚƚŚĞŐƌĞĞŵĞŶƚ͘dŚĞŝƚLJŵĂLJǁŝƚŚŚŽůĚƉĂLJŵĞŶƚĨŽƌǁŽƌŬƚŚĂƚ ĚŽĞƐŶŽƚŵĞĞƚƚŚĞ
ƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
͘ ĨĨĞĐƚŽĨWĂLJŵĞŶƚ͘WĂLJŵĞŶƚĨŽƌĂŶLJƉĂƌƚŽĨƚŚĞtŽƌŬƐŚĂůůŶŽƚĐŽŶƐƚŝƚƵƚĞĂǁĂŝǀĞƌďLJ
ƚŚĞŝƚLJŽĨĂŶLJƌĞŵĞĚŝĞƐŝƚŵĂLJŚĂǀĞĂŐĂŝŶƐƚƚŚĞŽŶƐƵůƚĂŶƚĨŽƌĨĂŝůƵƌĞŽĨƚŚĞ
ŽŶƐƵůƚĂŶƚ ƚŽ ƉĞƌĨŽƌŵ ƚŚĞ tŽƌŬ Žƌ ĨŽƌ ĂŶLJ ďƌĞĂĐŚ ŽĨ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ďLJ ƚŚĞ
ŽŶƐƵůƚĂŶƚ͘
͘ EŽŶͲƉƉƌŽƉƌŝĂƚŝŽŶŽĨ&ƵŶĚƐ͘/ĨƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐĂƌĞŶŽƚĂƉƉƌŽƉƌŝĂƚĞĚŽƌĂůůŽĐĂƚĞĚĨŽƌ
ƉĂLJŵĞŶƚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌĂŶLJĨƵƚƵƌĞĨŝƐĐĂůƉĞƌŝŽĚ͕ƚŚĞŝƚLJƐŚĂůůŶŽƚďĞ
ŽďůŝŐĂƚĞĚƚŽŵĂŬĞƉĂLJŵĞŶƚƐĨŽƌtŽƌŬŽƌĂŵŽƵŶƚƐŝŶĐƵƌƌĞĚĂĨƚĞƌƚŚĞĞŶĚŽĨƚŚĞ
ĐƵƌƌĞŶƚĨŝƐĐĂůƉĞƌŝŽĚ͕ĂŶĚƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůƚĞƌŵŝŶĂƚĞƵƉŽŶƚŚĞĐŽŵƉůĞƚŝŽŶŽĨĂůů
ƌĞŵĂŝŶŝŶŐtŽƌŬĨŽƌǁŚŝĐŚĨƵŶĚƐĂƌĞĂůůŽĐĂƚĞĚ͘EŽƉĞŶĂůƚLJŽƌĞdžƉĞŶƐĞƐŚĂůůĂĐĐƌƵĞƚŽ
ƚŚĞŝƚLJŝŶƚŚĞĞǀĞŶƚƚŚŝƐƉƌŽǀŝƐŝŽŶĂƉƉůŝĞƐ͘
ϱ͘dĞƌŵŝŶĂƚŝŽŶ͗
͘dŚĞŝƚLJƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽƚĞƌŵŝŶĂƚĞƚŚŝƐŐƌĞĞŵĞŶƚĂƚĂŶLJƚŝŵĞ͕ǁŝƚŚŽƌǁŝƚŚŽƵƚ
ĐĂƵƐĞďLJŐŝǀŝŶŐƚĞŶ;ϭϬͿĐĂůĞŶĚĂƌĚĂLJƐ͛ŶŽƚŝĐĞƚŽƚŚĞŽŶƐƵůƚĂŶƚŝŶǁƌŝƚŝŶŐ͘/ŶƚŚĞĞǀĞŶƚ
ŽĨƐƵĐŚƚĞƌŵŝŶĂƚŝŽŶŽƌƐƵƐƉĞŶƐŝŽŶ͕ĂůůĨŝŶŝƐŚĞĚŽƌƵŶĨŝŶŝƐŚĞĚĚŽĐƵŵĞŶƚƐ͕ĚĂƚĂ͕ƐƚƵĚŝĞƐ͕
ǁŽƌŬƐŚĞĞƚƐ͕ ŵŽĚĞůƐ ĂŶĚ ƌĞƉŽƌƚƐ͕ Žƌ ŽƚŚĞƌ ŵĂƚĞƌŝĂů ƉƌĞƉĂƌĞĚ ďLJ ƚŚĞ ŽŶƐƵůƚĂŶƚ
ƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůďĞƐƵďŵŝƚƚĞĚƚŽƚŚĞŝƚLJ͕ŝĨĂŶLJĂƌĞƌĞƋƵŝƌĞĚĂƐƉĂƌƚ
ŽĨƚŚĞtŽƌŬ͘
͘/ŶƚŚĞĞǀĞŶƚƚŚŝƐŐƌĞĞŵĞŶƚŝƐƚĞƌŵŝŶĂƚĞĚďLJƚŚĞŝƚLJ͕ƚŚĞŽŶƐƵůƚĂŶƚƐŚĂůůďĞĞŶƚŝƚůĞĚ
ƚŽƉĂLJŵĞŶƚĨŽƌĂůůŚŽƵƌƐǁŽƌŬĞĚƚŽƚŚĞĞĨĨĞĐƚŝǀĞĚĂƚĞŽĨƚĞƌŵŝŶĂƚŝŽŶ͕ůĞƐƐĂůůƉĂLJŵĞŶƚƐ
ƉƌĞǀŝŽƵƐůLJŵĂĚĞ͘/ĨƚŚĞŐƌĞĞŵĞŶƚŝƐƚĞƌŵŝŶĂƚĞĚďLJƚŚĞŝƚLJĂĨƚĞƌƉĂƌƚŝĂůƉĞƌĨŽƌŵĂŶĐĞ
ŽĨtŽƌŬĨŽƌǁŚŝĐŚƚŚĞĂŐƌĞĞĚĐŽŵƉĞŶƐĂƚŝŽŶŝƐĂĨŝdžĞĚĨĞĞ͕ƚŚĞŝƚLJƐŚĂůůƉĂLJƚŚĞ
ŽŶƐƵůƚĂŶƚĂŶĞƋƵŝƚĂďůĞƐŚĂƌĞŽĨƚŚĞĨŝdžĞĚĨĞĞ͘dŚŝƐƉƌŽǀŝƐŝŽŶƐŚĂůůŶŽƚƉƌĞǀĞŶƚƚŚĞ
ŝƚLJĨƌŽŵƐĞĞŬŝŶŐĂŶLJůĞŐĂůƌĞŵĞĚŝĞƐŝƚŵĂLJŚĂǀĞĨŽƌƚŚĞǀŝŽůĂƚŝŽŶŽƌŶŽŶƉĞƌĨŽƌŵĂŶĐĞ
ŽĨĂŶLJŽĨƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚƐƵĐŚĐŚĂƌŐĞƐĚƵĞƚŽƚŚĞŝƚLJƐŚĂůůďĞ
ĚĞĚƵĐƚĞĚĨƌŽŵƚŚĞĨŝŶĂůƉĂLJŵĞŶƚĚƵĞƚŚĞŽŶƐƵůƚĂŶƚ͘EŽƉĂLJŵĞŶƚƐŚĂůůďĞŵĂĚĞďLJ
ƚŚĞŝƚLJĨŽƌĂŶLJĞdžƉĞŶƐĞƐŝŶĐƵƌƌĞĚŽƌǁŽƌŬĚŽŶĞĨŽůůŽǁŝŶŐƚŚĞĞĨĨĞĐƚŝǀĞĚĂƚĞŽĨ
ƚĞƌŵŝŶĂƚŝŽŶƵŶůĞƐƐĂƵƚŚŽƌŝnjĞĚŝŶĂĚǀĂŶĐĞŝŶǁƌŝƚŝŶŐďLJƚŚĞŝƚLJ͘
ϲ͘tĂƌƌĂŶƚŝĞƐŶĚZŝŐŚƚdŽhƐĞtŽƌŬWƌŽĚƵĐƚ͗ŽŶƐƵůƚĂŶƚƌĞƉƌĞƐĞŶƚƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚ
ŽŶƐƵůƚĂŶƚ ǁŝůů ƉĞƌĨŽƌŵ Ăůů tŽƌŬ ŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ŝŶ Ă ƉƌŽĨĞƐƐŝŽŶĂů ĂŶĚ
ǁŽƌŬŵĂŶůŝŬĞŵĂŶŶĞƌĂŶĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂůůƌĞĂƐŽŶĂďůĞĂŶĚƉƌŽĨĞƐƐŝŽŶĂůƐƚĂŶĚĂƌĚƐ
W'ϯK&ϭϬ
ĂŶĚůĂǁƐ͘ŽŵƉůŝĂŶĐĞǁŝƚŚƉƌŽĨĞƐƐŝŽŶĂůƐƚĂŶĚĂƌĚƐŝŶĐůƵĚĞƐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ƉĞƌĨŽƌŵŝŶŐƚŚĞ
tŽƌŬŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚĂƉƉůŝĐĂďůĞŝƚLJƐƚĂŶĚĂƌĚƐŽƌŐƵŝĚĞůŝŶĞƐ;Ğ͘Ő͘ĚĞƐŝŐŶĐƌŝƚĞƌŝĂĂŶĚ
^ƚĂŶĚĂƌĚWůĂŶƐĨŽƌZŽĂĚ͕ƌŝĚŐĞĂŶĚDƵŶŝĐŝƉĂůŽŶƐƚƌƵĐƚŝŽŶͿ͘WƌŽĨĞƐƐŝŽŶĂůĞŶŐŝŶĞĞƌƐƐŚĂůů
ĐĞƌƚŝĨLJĞŶŐŝŶĞĞƌŝŶŐƉůĂŶƐ͕ƐƉĞĐŝĨŝĐĂƚŝŽŶƐ͕ƉůĂƚƐ͕ĂŶĚƌĞƉŽƌƚƐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ƉƵƌƐƵĂŶƚƚŽ
Ztϭϴ͘ϰϯ͘ϬϳϬ͘ŽŶƐƵůƚĂŶƚĨƵƌƚŚĞƌƌĞƉƌĞƐĞŶƚƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚĂůůĨŝŶĂůǁŽƌŬƉƌŽĚƵĐƚ
ĐƌĞĂƚĞĚĨŽƌĂŶĚĚĞůŝǀĞƌĞĚƚŽƚŚĞŝƚLJƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůďĞƚŚĞŽƌŝŐŝŶĂůǁŽƌŬ
ŽĨƚŚĞŽŶƐƵůƚĂŶƚĂŶĚĨƌĞĞĨƌŽŵĂŶLJŝŶƚĞůůĞĐƚƵĂůƉƌŽƉĞƌƚLJĞŶĐƵŵďƌĂŶĐĞǁŚŝĐŚǁŽƵůĚ
ƌĞƐƚƌŝĐƚƚŚĞŝƚLJĨƌŽŵƵƐŝŶŐƚŚĞǁŽƌŬƉƌŽĚƵĐƚ͘ŽŶƐƵůƚĂŶƚŐƌĂŶƚƐ ƚŽ ƚŚĞ ŝƚLJ Ă ŶŽŶͲ
ĞdžĐůƵƐŝǀĞ͕ƉĞƌƉĞƚƵĂůƌŝŐŚƚĂŶĚůŝĐĞŶƐĞƚŽƵƐĞ͕ƌĞƉƌŽĚƵĐĞ͕ĚŝƐƚƌŝďƵƚĞ͕ĂĚĂƉƚ͕ŵŽĚŝĨLJ͕ĂŶĚ
ĚŝƐƉůĂLJĂůůĨŝŶĂůǁŽƌŬƉƌŽĚƵĐƚƉƌŽĚƵĐĞĚƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͘dŚĞŝƚLJ͛ƐŽƌŽƚŚĞƌ͛Ɛ
ĂĚĂƉƚĂƚŝŽŶ͕ŵŽĚŝĨŝĐĂƚŝŽŶŽƌƵƐĞŽĨƚŚĞĨŝŶĂůǁŽƌŬƉƌŽĚƵĐƚƐŽƚŚĞƌƚŚĂŶĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨ
ƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůďĞǁŝƚŚŽƵƚůŝĂďŝůŝƚLJƚŽƚŚĞŽŶƐƵůƚĂŶƚ͘dŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚŝƐƐĞĐƚŝŽŶ
ƐŚĂůůƐƵƌǀŝǀĞƚŚĞĞdžƉŝƌĂƚŝŽŶŽƌƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
ϳ͘ZĞĐŽƌĚ DĂŝŶƚĞŶĂŶĐĞ͗ dŚĞ ŽŶƐƵůƚĂŶƚ ƐŚĂůů ŵĂŝŶƚĂŝŶ ĂĐĐŽƵŶƚƐ ĂŶĚ ƌĞĐŽƌĚƐ͕ ǁŚŝĐŚ
ƉƌŽƉĞƌůLJ ƌĞĨůĞĐƚ Ăůů ĚŝƌĞĐƚ ĂŶĚ ŝŶĚŝƌĞĐƚ ĐŽƐƚƐ ĞdžƉĞŶĚĞĚ ĂŶĚ tŽƌŬ ƉƌŽǀŝĚĞĚ ŝŶ ƚŚĞ
ƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚƌĞƚĂŝŶƐƵĐŚƌĞĐŽƌĚƐĨŽƌĂƐůŽŶŐĂƐŵĂLJďĞƌĞƋƵŝƌĞĚďLJ
ĂƉƉůŝĐĂďůĞtĂƐŚŝŶŐƚŽŶ^ƚĂƚĞƌĞĐŽƌĚƐƌĞƚĞŶƚŝŽŶůĂǁƐ͕ďƵƚŝŶĂŶLJĞǀĞŶƚŶŽůĞƐƐƚŚĂŶƐŝdž
LJĞĂƌƐĂĨƚĞƌƚŚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘dŚĞŽŶƐƵůƚĂŶƚĂŐƌĞĞƐƚŽƉƌŽǀŝĚĞĂĐĐĞƐƐ
ƚŽĂŶĚĐŽƉŝĞƐŽĨĂŶLJƌĞĐŽƌĚƐƌĞůĂƚĞĚƚŽƚŚŝƐŐƌĞĞŵĞŶƚĂƐƌĞƋƵŝƌĞĚďLJƚŚĞŝƚLJƚŽĂƵĚŝƚ
ĞdžƉĞŶĚŝƚƵƌĞƐĂŶĚĐŚĂƌŐĞƐĂŶĚͬŽƌƚŽĐŽŵƉůLJǁŝƚŚƚŚĞtĂƐŚŝŶŐƚŽŶ^ƚĂƚĞWƵďůŝĐZĞĐŽƌĚƐĐƚ
;ŚĂƉƚĞƌ ϰϮ͘ϱϲ ZtͿ͘ dŚĞ ƉƌŽǀŝƐŝŽŶƐ ŽĨ ƚŚŝƐ ƐĞĐƚŝŽŶ ƐŚĂůů ƐƵƌǀŝǀĞƚŚĞĞdžƉŝƌĂƚŝŽŶŽƌ
ƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
ϴ͘WƵďůŝĐZĞĐŽƌĚƐŽŵƉůŝĂŶĐĞ͗dŽƚŚĞĨƵůůĞdžƚĞŶƚƚŚĞŝƚLJĚĞƚĞƌŵŝŶĞƐŶĞĐĞƐƐĂƌLJƚŽĐŽŵƉůLJ
ǁŝƚŚƚŚĞtĂƐŚŝŶŐƚŽŶ^ƚĂƚĞWƵďůŝĐZĞĐŽƌĚƐĐƚ͕ŽŶƐƵůƚĂŶƚƐŚĂůůŵĂŬĞĂĚƵĞĚŝůŝŐĞŶƚƐĞĂƌĐŚ
ŽĨĂůůƌĞĐŽƌĚƐŝŶŝƚƐƉŽƐƐĞƐƐŝŽŶŽƌĐŽŶƚƌŽůƌĞůĂƚŝŶŐƚŽƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚƚŚĞtŽƌŬ͕
ŝŶĐůƵĚŝŶŐ͕ďƵƚŶŽƚůŝŵŝƚĞĚƚŽ͕ĞͲŵĂŝů͕ĐŽƌƌĞƐƉŽŶĚĞŶĐĞ͕ŶŽƚĞƐ͕ƐĂǀĞĚƚĞůĞƉŚŽŶĞŵĞƐƐĂŐĞƐ͕
ƌĞĐŽƌĚŝŶŐƐ͕ƉŚŽƚŽƐ͕ŽƌĚƌĂǁŝŶŐƐĂŶĚƉƌŽǀŝĚĞƚŚĞŵƚŽƚŚĞŝƚLJĨŽƌƉƌŽĚƵĐƚŝŽŶ͘/ŶƚŚĞĞǀĞŶƚ
ŽŶƐƵůƚĂŶƚ ďĞůŝĞǀĞƐ ƐĂŝĚ ƌĞĐŽƌĚƐ ŶĞĞĚ ƚŽ ďĞ ƉƌŽƚĞĐƚĞĚ ĨƌŽŵ ĚŝƐĐůŽƐƵƌĞ͕ ŝƚ ŵĂLJ͕ Ăƚ
ŽŶƐƵůƚĂŶƚ͛ƐŽǁŶĞdžƉĞŶƐĞ͕ƐĞĞŬũƵĚŝĐŝĂůƉƌŽƚĞĐƚŝŽŶ͘ŽŶƐƵůƚĂŶƚƐŚĂůůŝŶĚĞŵŶŝĨLJ͕ĚĞĨĞŶĚ͕
ĂŶĚŚŽůĚŚĂƌŵůĞƐƐƚŚĞŝƚLJĨŽƌĂůůĐŽƐƚƐ͕ŝŶĐůƵĚŝŶŐĂƚƚŽƌŶĞLJƐ͛ĨĞĞƐ͕ĂƚƚĞŶĚĂŶƚƚŽĂŶLJĐůĂŝŵ
ŽƌůŝƚŝŐĂƚŝŽŶƌĞůĂƚĞĚƚŽĂWƵďůŝĐZĞĐŽƌĚƐĐƚƌĞƋƵĞƐƚĨŽƌǁŚŝĐŚŽŶƐƵůƚĂŶƚŚĂƐƌĞƐƉŽŶƐŝǀĞ
ƌĞĐŽƌĚƐĂŶĚĨŽƌǁŚŝĐŚŽŶƐƵůƚĂŶƚŚĂƐǁŝƚŚŚĞůĚƌĞĐŽƌĚƐŽƌŝŶĨŽƌŵĂƚŝŽŶĐŽŶƚĂŝŶĞĚƚŚĞƌĞŝŶ͕
Žƌ ŶŽƚ ƉƌŽǀŝĚĞĚ ƚŚĞŵ ƚŽ ƚŚĞ ŝƚLJ ŝŶ Ă ƚŝŵĞůLJ ŵĂŶŶĞƌ͘ ŽŶƐƵůƚĂŶƚ ƐŚĂůů ƉƌŽĚƵĐĞ ĨŽƌ
ĚŝƐƚƌŝďƵƚŝŽŶĂŶLJĂŶĚĂůůƌĞĐŽƌĚƐƌĞƐƉŽŶƐŝǀĞƚŽƚŚĞWƵďůŝĐZĞĐŽƌĚƐĐƚƌĞƋƵĞƐƚŝŶĂƚŝŵĞůLJ
ŵĂŶŶĞƌ͕ƵŶůĞƐƐƚŚŽƐĞƌĞĐŽƌĚƐĂƌĞƉƌŽƚĞĐƚĞĚďLJĐŽƵƌƚŽƌĚĞƌ͘dŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚŝƐƐĞĐƚŝŽŶ
ƐŚĂůůƐƵƌǀŝǀĞƚŚĞĞdžƉŝƌĂƚŝŽŶŽƌƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
ϵ͘/ŶĚĞƉĞŶĚĞŶƚŽŶƚƌĂĐƚŽƌZĞůĂƚŝŽŶƐŚŝƉ͗
͘dŚĞŽŶƐƵůƚĂŶƚŝƐƌĞƚĂŝŶĞĚďLJƚŚĞŝƚLJŽŶůLJĨŽƌƚŚĞƉƵƌƉŽƐĞƐĂŶĚƚŽƚŚĞĞdžƚĞŶƚƐĞƚĨŽƌƚŚ
ŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͘dŚĞŶĂƚƵƌĞŽĨƚŚĞƌĞůĂƚŝŽŶƐŚŝƉďĞƚǁĞĞŶƚŚĞŽŶƐƵůƚĂŶƚĂŶĚƚŚĞŝƚLJ
W'ϰK&ϭϬ
ĚƵƌŝŶŐ ƚŚĞ ƉĞƌŝŽĚ ŽĨ ƚŚĞ tŽƌŬ ƐŚĂůů ďĞ ƚŚĂƚ ŽĨ ĂŶ ŝŶĚĞƉĞŶĚĞŶƚ ĐŽŶƚƌĂĐƚŽƌ͕ ŶŽƚ
ĞŵƉůŽLJĞĞ͘dŚĞŽŶƐƵůƚĂŶƚ͕ŶŽƚƚŚĞŝƚLJ͕ƐŚĂůůŚĂǀĞƚŚĞƉŽǁĞƌƚŽĐŽŶƚƌŽůĂŶĚĚŝƌĞĐƚƚŚĞ
ĚĞƚĂŝůƐ͕ŵĂŶŶĞƌŽƌŵĞĂŶƐŽĨtŽƌŬ͘^ƉĞĐŝĨŝĐĂůůLJ͕ďƵƚŶŽƚďLJŵĞĂŶƐŽĨůŝŵŝƚĂƚŝŽŶ͕ƚŚĞ
ŽŶƐƵůƚĂŶƚ ƐŚĂůů ŚĂǀĞ ŶŽ ŽďůŝŐĂƚŝŽŶ ƚŽ ǁŽƌŬ ĂŶLJ ƉĂƌƚŝĐƵůĂƌ ŚŽƵƌƐ Žƌ ƉĂƌƚŝĐƵůĂƌ
ƐĐŚĞĚƵůĞ͕ƵŶůĞƐƐŽƚŚĞƌǁŝƐĞŝŶĚŝĐĂƚĞĚŝŶƚŚĞ^ĐŽƉĞŽĨtŽƌŬŽƌǁŚĞƌĞƐĐŚĞĚƵůŝŶŐŽĨ
ĂƚƚĞŶĚĂŶĐĞŽƌƉĞƌĨŽƌŵĂŶĐĞŝƐŵƵƚƵĂůůLJĂƌƌĂŶŐĞĚĚƵĞƚŽƚŚĞŶĂƚƵƌĞŽĨƚŚĞtŽƌŬ͘
ŽŶƐƵůƚĂŶƚƐŚĂůůƌĞƚĂŝŶƚŚĞƌŝŐŚƚƚŽĚĞƐŝŐŶĂƚĞƚŚĞŵĞĂŶƐŽĨƉĞƌĨŽƌŵŝŶŐƚŚĞtŽƌŬ
ĐŽǀĞƌĞĚďLJƚŚŝƐĂŐƌĞĞŵĞŶƚ͕ĂŶĚƚŚĞŽŶƐƵůƚĂŶƚƐŚĂůůďĞĞŶƚŝƚůĞĚƚŽĞŵƉůŽLJŽƚŚĞƌ
ǁŽƌŬĞƌƐĂƚƐƵĐŚĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚƐƵĐŚŽƚŚĞƌĐŽŶĚŝƚŝŽŶƐĂƐŝƚŵĂLJĚĞĞŵƉƌŽƉĞƌ͕
ƉƌŽǀŝĚĞĚ͕ŚŽǁĞǀĞƌ͕ƚŚĂƚĂŶLJĐŽŶƚƌĂĐƚƐŽŵĂĚĞďLJƚŚĞŽŶƐƵůƚĂŶƚŝƐƚŽďĞƉĂŝĚďLJŝƚ
ĂůŽŶĞ͕ĂŶĚƚŚĂƚĞŵƉůŽLJŝŶŐƐƵĐŚǁŽƌŬĞƌƐ͕ŝƚŝƐĂĐƚŝŶŐŝŶĚŝǀŝĚƵĂůůLJĂŶĚŶŽƚĂƐĂŶĂŐĞŶƚ
ĨŽƌƚŚĞŝƚLJ͘
͘dŚĞŝƚLJƐŚĂůůŶŽƚďĞƌĞƐƉŽŶƐŝďůĞĨŽƌǁŝƚŚŚŽůĚŝŶŐŽƌŽƚŚĞƌǁŝƐĞĚĞĚƵĐƚŝŶŐĨĞĚĞƌĂů
ŝŶĐŽŵĞƚĂdžŽƌ^ŽĐŝĂů^ĞĐƵƌŝƚLJŽƌĐŽŶƚƌŝďƵƚŝŶŐƚŽƚŚĞ^ƚĂƚĞ/ŶĚƵƐƚƌŝĂů /ŶƐƵƌĂŶĐĞ
WƌŽŐƌĂŵ͕ŽƌŽƚŚĞƌǁŝƐĞĂƐƐƵŵŝŶŐƚŚĞĚƵƚŝĞƐŽĨĂŶĞŵƉůŽLJĞƌǁŝƚŚƌĞƐƉĞĐƚƚŽŽŶƐƵůƚĂŶƚ
ŽƌĂŶLJĞŵƉůŽLJĞĞŽĨƚŚĞŽŶƐƵůƚĂŶƚ͘
͘/ĨƚŚĞŽŶƐƵůƚĂŶƚŝƐĂƐŽůĞƉƌŽƉƌŝĞƚŽƌƐŚŝƉŽƌŝĨƚŚŝƐŐƌĞĞŵĞŶƚ ŝƐǁŝƚŚĂŶŝŶĚŝǀŝĚƵĂů͕ƚŚĞ
ŽŶƐƵůƚĂŶƚĂŐƌĞĞƐƚŽŶŽƚŝĨLJƚŚĞŝƚLJĂŶĚĐŽŵƉůĞƚĞĂŶLJƌĞƋƵŝƌĞĚĨŽƌŵŝĨƚŚĞŽŶƐƵůƚĂŶƚ
ƌĞƚŝƌĞĚƵŶĚĞƌĂ^ƚĂƚĞŽĨtĂƐŚŝŶŐƚŽŶƌĞƚŝƌĞŵĞŶƚƐLJƐƚĞŵĂŶĚĂŐƌĞĞƐƚŽŝŶĚĞŵŶŝĨLJĂŶLJ
ůŽƐƐĞƐƚŚĞŝƚLJŵĂLJƐƵƐƚĂŝŶƚŚƌŽƵŐŚƚŚĞŽŶƐƵůƚĂŶƚ͛ƐĨĂŝůƵƌĞƚŽĚŽƐŽ͘
ϭϬ͘,ŽůĚ,ĂƌŵůĞƐƐ͗dŚĞŽŶƐƵůƚĂŶƚĂŐƌĞĞƐƚŽƌĞůĞĂƐĞ͕ŝŶĚĞŵŶŝĨLJ͕ĚĞĨĞŶĚ͕ĂŶĚŚŽůĚŚĂƌŵůĞƐƐ
ƚŚĞŝƚLJ͕ĞůĞĐƚĞĚŽĨĨŝĐŝĂůƐ͕ĞŵƉůŽLJĞĞƐ͕ŽĨĨŝĐĞƌƐ͕ƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐ͕ĂŶĚǀŽůƵŶƚĞĞƌƐĨƌŽŵĂŶLJ
ĂŶĚ Ăůů ĐůĂŝŵƐ͕ ĚĞŵĂŶĚƐ͕ ĂĐƚŝŽŶƐ͕ ƐƵŝƚƐ͕ ĐĂƵƐĞƐ ŽĨ ĂĐƚŝŽŶ͕ ĂƌďŝƚƌĂƚŝŽŶƐ͕ ŵĞĚŝĂƚŝŽŶƐ͕
ƉƌŽĐĞĞĚŝŶŐƐ͕ũƵĚŐŵĞŶƚƐ͕ĂǁĂƌĚƐ͕ŝŶũƵƌŝĞƐ͕ĚĂŵĂŐĞƐ͕ůŝĂďŝůŝƚŝĞƐ͕ƚĂdžĞƐ͕ůŽƐƐĞƐ͕ĨŝŶĞƐ͕ĨĞĞƐ͕
ƉĞŶĂůƚŝĞƐ͕ĞdžƉĞŶƐĞƐ͕ĂƚƚŽƌŶĞLJ͛ƐŽƌĂƚƚŽƌŶĞLJƐ͛ĨĞĞƐ͕ĐŽƐƚƐ͕ĂŶĚͬŽƌůŝƚŝŐĂƚŝŽŶĞdžƉĞŶƐĞƐƚŽŽƌ
ďLJĂŶLJĂŶĚĂůůƉĞƌƐŽŶƐŽƌĞŶƚŝƚŝĞƐ͕ĂƌŝƐŝŶŐĨƌŽŵ͕ƌĞƐƵůƚŝŶŐĨƌŽŵ͕ŽƌƌĞůĂƚĞĚƚŽƚŚĞŶĞŐůŝŐĞŶƚ
ĂĐƚƐ͕ĞƌƌŽƌƐŽƌŽŵŝƐƐŝŽŶƐŽĨƚŚĞŽŶƐƵůƚĂŶƚŝŶŝƚƐƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚŽƌĂ
ďƌĞĂĐŚŽĨƚŚŝƐŐƌĞĞŵĞŶƚďLJŽŶƐƵůƚĂŶƚ͕ĞdžĐĞƉƚĨŽƌƚŚĂƚƉŽƌƚŝŽŶŽĨƚŚĞĐůĂŝŵƐĐĂƵƐĞĚďLJ
ƚŚĞŝƚLJ͛ƐƐŽůĞŶĞŐůŝŐĞŶĐĞ͘
^ŚŽƵůĚĂĐŽƵƌƚŽĨĐŽŵƉĞƚĞŶƚũƵƌŝƐĚŝĐƚŝŽŶĚĞƚĞƌŵŝŶĞƚŚĂƚƚŚŝƐĂŐ ƌĞĞŵĞŶƚŝƐƐƵďũĞĐƚƚŽZt
ϰ͘Ϯϰ͘ϭϭϱ͕;sĂůŝĚŝƚLJŽĨĂŐƌĞĞŵĞŶƚƚŽŝŶĚĞŵŶŝĨLJĂŐĂŝŶƐƚůŝĂďŝůŝƚLJĨŽƌŶĞŐůŝŐĞŶĐĞƌĞůĂƚŝǀĞƚŽ
ĐŽŶƐƚƌƵĐƚŝŽŶ͕ĂůƚĞƌĂƚŝŽŶ͕ŝŵƉƌŽǀĞŵĞŶƚ͕ĞƚĐ͕͘ŽĨƐƚƌƵĐƚƵƌĞŽƌŝŵƉƌŽǀĞŵĞŶƚĂƚƚĂĐŚĞĚƚŽƌĞĂů
ĞƐƚĂƚĞ͙ͿƚŚĞŶ͕ŝŶƚŚĞĞǀĞŶƚŽĨůŝĂďŝůŝƚLJĨŽƌĚĂŵĂŐĞƐĂƌŝƐŝŶŐŽƵƚŽĨďŽĚŝůLJŝŶũƵƌLJƚŽƉĞƌƐŽŶƐ
ŽƌĚĂŵĂŐĞƐƚŽƉƌŽƉĞƌƚLJĐĂƵƐĞĚďLJŽƌƌĞƐƵůƚŝŶŐĨƌŽŵƚŚĞĐŽŶĐƵƌƌĞŶƚŶĞŐůŝŐĞŶĐĞŽĨƚŚĞ
ŽŶƐƵůƚĂŶƚĂŶĚƚŚĞŝƚLJ͕ŝƚƐŽĨĨŝĐĞƌƐ͕ŽĨĨŝĐŝĂůƐ͕ĞŵƉůŽLJĞĞƐĂŶĚǀŽůƵŶƚĞĞƌƐ͕ŽŶƐƵůƚĂŶƚ͛Ɛ
ůŝĂďŝůŝƚLJƐŚĂůůďĞŽŶůLJƚŽƚŚĞĞdžƚĞŶƚŽĨŽŶƐƵůƚĂŶƚ͛ƐŶĞŐůŝŐĞŶĐĞ͘
W'ϱK&ϭϬ
/ƚŝƐĨƵƌƚŚĞƌƐƉĞĐŝĨŝĐĂůůLJĂŶĚĞdžƉƌĞƐƐůLJƵŶĚĞƌƐƚŽŽĚƚŚĂƚƚŚĞŝŶĚĞŵŶŝĨŝĐĂƚŝŽŶƉƌŽǀŝĚĞĚŝŶ
ƚŚŝƐ ŐƌĞĞŵĞŶƚ ĐŽŶƐƚŝƚƵƚĞ ŽŶƐƵůƚĂŶƚ͛Ɛ ǁĂŝǀĞƌ ŽĨ ŝŵŵƵŶŝƚLJ ƵŶĚĞƌ ƚŚĞ /ŶĚƵƐƚƌŝĂů
/ŶƐƵƌĂŶĐĞĐƚ͕ZtdŝƚůĞϱϭ͕ƐŽůĞůLJĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨƚŚŝƐŝŶĚĞŵŶŝĨŝĐĂƚŝŽŶ͘dŚĞWĂƌƚŝĞƐ
ŚĂǀĞŵƵƚƵĂůůLJŶĞŐŽƚŝĂƚĞĚĂŶĚĂŐƌĞĞĚƚŽƚŚŝƐǁĂŝǀĞƌ͘dŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚŝƐƐĞĐƚŝŽŶƐŚĂůů
ƐƵƌǀŝǀĞƚŚĞĞdžƉŝƌĂƚŝŽŶŽƌƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
ϭϭ͘'ŝĨƚƐĂŶĚŽŶĨůŝĐƚƐ͗dŚĞŝƚLJ͛ƐŽĚĞŽĨƚŚŝĐƐĂŶĚtĂƐŚŝŶŐƚŽŶ^ƚĂƚĞůĂǁƉƌŽŚŝďŝƚŝƚLJ
ĞŵƉůŽLJĞĞƐĨƌŽŵƐŽůŝĐŝƚŝŶŐ͕ĂĐĐĞƉƚŝŶŐ͕ŽƌƌĞĐĞŝǀŝŶŐĂŶLJŐŝĨƚ͕ŐƌĂƚƵŝƚLJŽƌĨĂǀŽƌĨƌŽŵĂŶLJ
ƉĞƌƐŽŶ͕ĨŝƌŵŽƌĐŽƌƉŽƌĂƚŝŽŶŝŶǀŽůǀĞĚŝŶĂĐŽŶƚƌĂĐƚŽƌƚƌĂŶƐĂĐƚŝŽŶ͘dŽĞŶƐƵƌĞĐŽŵƉůŝĂŶĐĞ
ǁŝƚŚƚŚĞŝƚLJ͛ƐŽĚĞŽĨƚŚŝĐƐĂŶĚƐƚĂƚĞůĂǁ͕ƚŚĞŽŶƐƵůƚĂŶƚƐŚ ĂůůŶŽƚŐŝǀĞĂŐŝĨƚŽĨĂŶLJŬŝŶĚ
ƚŽŝƚLJĞŵƉůŽLJĞĞƐŽƌŽĨĨŝĐŝĂůƐ͘ŽŶƐƵůƚĂŶƚĂůƐŽĐŽŶĨŝƌŵƐƚŚĂƚŽŶƐƵůƚĂŶƚĚŽĞƐŶŽƚŚĂǀĞĂ
ďƵƐŝŶĞƐƐŝŶƚĞƌĞƐƚŽƌĂĐůŽƐĞĨĂŵŝůLJƌĞůĂƚŝŽŶƐŚŝƉǁŝƚŚĂŶLJŝƚLJŽĨĨŝĐĞƌŽƌĞŵƉůŽLJĞĞǁŚŽǁĂƐ͕
ŝƐ͕ Žƌ ǁŝůů ďĞ ŝŶǀŽůǀĞĚ ŝŶ ƐĞůĞĐƚŝŶŐ ƚŚĞ ŽŶƐƵůƚĂŶƚ͕ ŶĞŐŽƚŝĂƚŝŶŐ Žƌ ĂĚŵŝŶŝƐƚĞƌŝŶŐ ƚŚŝƐ
ŐƌĞĞŵĞŶƚ͕ŽƌĞǀĂůƵĂƚŝŶŐƚŚĞŽŶƐƵůƚĂŶƚ͛ƐƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞtŽƌŬ͘
ϭϮ͘ŝƚLJ ŽĨ ZĞŶƚŽŶ ƵƐŝŶĞƐƐ >ŝĐĞŶƐĞ͗ hŶůĞƐƐ ĞdžĞŵƉƚĞĚ ďLJ ƚŚĞ ZĞŶƚŽŶ DƵŶŝĐŝƉĂů ŽĚĞ͕
ŽŶƐƵůƚĂŶƚƐŚĂůůŽďƚĂŝŶĂŝƚLJŽĨZĞŶƚŽŶƵƐŝŶĞƐƐ>ŝĐĞŶƐĞƉƌŝŽƌƚŽƉĞƌĨŽƌŵŝŶŐĂŶLJtŽƌŬ
ĂŶĚ ŵĂŝŶƚĂŝŶ ƚŚĞ ďƵƐŝŶĞƐƐ ůŝĐĞŶƐĞ ŝŶ ŐŽŽĚ ƐƚĂŶĚŝŶŐ ƚŚƌŽƵŐŚŽƵƚ ƚŚĞƚĞƌŵŽĨƚŚŝƐ
ĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞŝƚLJ͘
/ŶĨŽƌŵĂƚŝŽŶƌĞŐĂƌĚŝŶŐĂĐƋƵŝƌŝŶŐĂĐŝƚLJďƵƐŝŶĞƐƐůŝĐĞŶƐĞĐĂŶďĞĨŽƵŶĚĂƚ͗
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƌĞŶƚŽŶǁĂ͘ŐŽǀͬdĂdž
/ŶĨŽƌŵĂƚŝŽŶƌĞŐĂƌĚŝŶŐ^ƚĂƚĞďƵƐŝŶĞƐƐůŝĐĞŶƐŝŶŐƌĞƋƵŝƌĞŵĞŶƚƐĐĂŶďĞĨŽƵŶĚĂƚ͗
ŚƚƚƉƐ͗ͬͬĚŽƌ͘ǁĂ͘ŐŽǀͬĚŽŝŶŐͲďƵƐŝŶĞƐƐͬƌĞŐŝƐƚĞƌͲŵLJͲďƵƐŝŶĞƐƐ
ϭϯ͘/ŶƐƵƌĂŶĐĞ͗ŽŶƐƵůƚĂŶƚƐŚĂůůƐĞĐƵƌĞĂŶĚŵĂŝŶƚĂŝŶ͗
͘ŽŵŵĞƌĐŝĂůŐĞŶĞƌĂůůŝĂďŝůŝƚLJŝŶƐƵƌĂŶĐĞŝŶƚŚĞŵŝŶŝŵƵŵĂŵŽƵŶƚƐŽĨΨϭ͕ϬϬϬ͕ϬϬϬĨŽƌ
ĞĂĐŚŽĐĐƵƌƌĞŶĐĞͬΨϮ͕ϬϬϬ͕ϬϬϬĂŐŐƌĞŐĂƚĞĨŽƌƚŚĞdĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
͘/Ŷ ƚŚĞ ĞǀĞŶƚ ƚŚĂƚ tŽƌŬ ĚĞůŝǀĞƌĞĚ ƉƵƌƐƵĂŶƚ ƚŽ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ĞŝƚŚĞƌ ĚŝƌĞĐƚůLJ Žƌ
ŝŶĚŝƌĞĐƚůLJŝŶǀŽůǀĞŽƌƌĞƋƵŝƌĞWƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐ͕WƌŽĨĞƐƐŝŽŶĂů>ŝĂďŝůŝƚLJ͕ƌƌŽƌƐĂŶĚ
KŵŝƐƐŝŽŶƐ ĐŽǀĞƌĂŐĞ ƐŚĂůů ďĞ ƉƌŽǀŝĚĞĚ ǁŝƚŚ ŵŝŶŝŵƵŵ ůŝŵŝƚƐ ŽĨ Ψϭ͕ϬϬϬ͕ϬϬϬ ƉĞƌ
ŽĐĐƵƌƌĞŶĐĞ͘ΗWƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐΗ͕ĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨƚŚŝƐƐĞĐƚŝŽŶ͕ƐŚĂůůŵĞĂŶĂŶLJ
tŽƌŬ ƉƌŽǀŝĚĞĚ ďLJ Ă ůŝĐĞŶƐĞĚ ƉƌŽĨĞƐƐŝŽŶĂů Žƌ tŽƌŬ ƚŚĂƚ ƌĞƋƵŝƌĞƐĂ ƉƌŽĨĞƐƐŝŽŶĂů
ƐƚĂŶĚĂƌĚŽĨĐĂƌĞ͘
͘tŽƌŬĞƌƐ͛ĐŽŵƉĞŶƐĂƚŝŽŶĐŽǀĞƌĂŐĞ͕ĂƐƌĞƋƵŝƌĞĚďLJƚŚĞ/ŶĚƵƐƚƌŝĂů/ŶƐƵƌĂŶĐĞůĂǁƐŽĨƚŚĞ
^ƚĂƚĞŽĨtĂƐŚŝŶŐƚŽŶ͕ƐŚĂůůĂůƐŽďĞƐĞĐƵƌĞĚ͘
͘ŽŵŵĞƌĐŝĂůƵƚŽŵŽďŝůĞ>ŝĂďŝůŝƚLJĨŽƌŽǁŶĞĚ͕ůĞĂƐĞĚ͕ŚŝƌĞĚŽƌŶŽŶͲŽǁŶĞĚ͕ůĞĂƐĞĚ͕ŚŝƌĞĚ
ŽƌŶŽŶͲŽǁŶĞĚ͕ǁŝƚŚŵŝŶŝŵƵŵůŝŵŝƚƐŽĨΨϭ͕ϬϬϬ͕ϬϬϬƉĞƌŽĐĐƵƌƌĞŶĐĞĐŽŵďŝŶĞĚƐŝŶŐůĞ
W'ϲK&ϭϬ
ůŝŵŝƚ͕ŝĨƚŚĞƌĞǁŝůůďĞĂŶLJƵƐĞŽĨŽŶƐƵůƚĂŶƚ͛ƐǀĞŚŝĐůĞƐŽŶƚŚĞŝƚLJ͛ƐWƌĞŵŝƐĞƐďLJŽƌŽŶ
ďĞŚĂůĨŽĨƚŚĞŝƚLJ͕ďĞLJŽŶĚŶŽƌŵĂůĐŽŵŵƵƚĞƐ͘
͘ŽŶƐƵůƚĂŶƚƐŚĂůůŶĂŵĞƚŚĞŝƚLJĂƐĂŶĚĚŝƚŝŽŶĂů/ŶƐƵƌĞĚŽŶŝƚƐĐŽŵŵĞƌĐŝĂůŐĞŶĞƌĂů
ůŝĂďŝůŝƚLJƉŽůŝĐLJŽŶĂŶŽŶͲĐŽŶƚƌŝďƵƚŽƌLJƉƌŝŵĂƌLJďĂƐŝƐ͘dŚĞŝƚLJ͛ƐŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐƐŚĂůů
ŶŽƚďĞĂƐŽƵƌĐĞĨŽƌƉĂLJŵĞŶƚŽĨĂŶLJŽŶƐƵůƚĂŶƚůŝĂďŝůŝƚLJ͕ŶŽƌƐŚĂůůƚŚĞŵĂŝŶƚĞŶĂŶĐĞŽĨ
ĂŶLJ ŝŶƐƵƌĂŶĐĞ ƌĞƋƵŝƌĞĚ ďLJ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ďĞ ĐŽŶƐƚƌƵĞĚ ƚŽ ůŝŵŝƚƚŚĞ ůŝĂďŝůŝƚLJ ŽĨ
ŽŶƐƵůƚĂŶƚƚŽƚŚĞĐŽǀĞƌĂŐĞƉƌŽǀŝĚĞĚďLJƐƵĐŚŝŶƐƵƌĂŶĐĞŽƌŽƚŚĞƌǁŝƐĞůŝŵŝƚƚŚĞŝƚLJ͛Ɛ
ƌĞĐŽƵƌƐĞƚŽĂŶLJƌĞŵĞĚLJĂǀĂŝůĂďůĞĂƚůĂǁŽƌŝŶĞƋƵŝƚLJ͘
&͘^ƵďũĞĐƚƚŽƚŚĞŝƚLJ͛ƐƌĞǀŝĞǁĂŶĚĂĐĐĞƉƚĂŶĐĞ͕ĂĐĞƌƚŝĨŝĐĂƚĞŽĨŝŶƐƵƌĂŶĐĞƐŚŽǁŝŶŐƚŚĞ
ƉƌŽƉĞƌĞŶĚŽƌƐĞŵĞŶƚƐ͕ƐŚĂůůďĞĚĞůŝǀĞƌĞĚƚŽƚŚĞŝƚLJďĞĨŽƌĞƉĞƌĨŽƌŵŝŶŐƚŚĞtŽƌŬ͘
'͘ŽŶƐƵůƚĂŶƚƐŚĂůůƉƌŽǀŝĚĞƚŚĞŝƚLJǁŝƚŚǁƌŝƚƚĞŶŶŽƚŝĐĞŽĨĂŶLJƉŽůŝĐLJĐĂŶĐĞůůĂƚŝŽŶ͕ǁŝƚŚŝŶ
ƚǁŽ;ϮͿďƵƐŝŶĞƐƐĚĂLJƐŽĨƚŚĞŝƌƌĞĐĞŝƉƚŽĨƐƵĐŚŶŽƚŝĐĞ͘
ϭϰ͘ĞůĂLJƐ͗ ŽŶƐƵůƚĂŶƚ ŝƐ ŶŽƚ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĚĞůĂLJƐ ĐĂƵƐĞĚ ďLJ ĨĂĐƚŽƌƐ ďĞLJŽŶĚ ƚŚĞ
ŽŶƐƵůƚĂŶƚ͛ƐƌĞĂƐŽŶĂďůĞĐŽŶƚƌŽů͘tŚĞŶƐƵĐŚĚĞůĂLJƐďĞLJŽŶĚƚŚĞŽŶƐƵůƚĂŶƚ͛ƐƌĞĂƐŽŶĂďůĞ
ĐŽŶƚƌŽůŽĐĐƵƌ͕ƚŚĞŝƚLJĂŐƌĞĞƐƚŚĞŽŶƐƵůƚĂŶƚŝƐŶŽƚƌĞƐƉŽŶƐŝďů ĞĨŽƌĚĂŵĂŐĞƐ͕ŶŽƌƐŚĂůůƚŚĞ
ŽŶƐƵůƚĂŶƚďĞĚĞĞŵĞĚƚŽďĞŝŶĚĞĨĂƵůƚŽĨƚŚĞŐƌĞĞŵĞŶƚ͘
ϭϱ͘^ƵĐĐĞƐƐŽƌƐĂŶĚƐƐŝŐŶƐ͗EĞŝƚŚĞƌƚŚĞŝƚLJŶŽƌƚŚĞŽŶƐƵůƚĂŶƚƐŚĂůůĂƐƐŝŐŶ͕ƚƌĂŶƐĨĞƌŽƌ
ĞŶĐƵŵďĞƌĂŶLJƌŝŐŚƚƐ͕ĚƵƚŝĞƐŽƌŝŶƚĞƌĞƐƚƐĂĐĐƌƵŝŶŐĨƌŽŵƚŚŝƐŐƌĞĞŵĞŶƚ ǁŝƚŚŽƵƚ ƚŚĞ
ǁƌŝƚƚĞŶĐŽŶƐĞŶƚŽĨƚŚĞŽƚŚĞƌ͘
ϭϲ͘EŽƚŝĐĞƐ͗ŶLJŶŽƚŝĐĞƌĞƋƵŝƌĞĚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůďĞŝŶǁƌŝƚŝŶŐ͕ĂĚĚƌĞƐƐĞĚƚŽƚŚĞ
ĂƉƉƌŽƉƌŝĂƚĞƉĂƌƚLJĂƚƚŚĞĂĚĚƌĞƐƐǁŚŝĐŚĂƉƉĞĂƌƐďĞůŽǁ;ĂƐŵŽĚŝĨŝĞĚŝŶǁƌŝƚŝŶŐĨƌŽŵƚŝŵĞ
ƚŽƚŝŵĞďLJƐƵĐŚƉĂƌƚLJͿ͕ĂŶĚŐŝǀĞŶƉĞƌƐŽŶĂůůLJ͕ďLJƌĞŐŝƐƚĞƌĞĚŽƌĐĞƌƚŝĨŝĞĚŵĂŝů͕ƌĞƚƵƌŶƌĞĐĞŝƉƚ
ƌĞƋƵĞƐƚĞĚ͕ďLJĨĂĐƐŝŵŝůĞŽƌďLJŶĂƚ ŝŽŶĂůůLJƌĞĐŽŐŶŝnjĞĚŽǀĞƌŶŝŐŚƚĐŽƵƌŝĞƌƐĞƌǀŝĐĞ͘dŝŵĞƉĞƌŝŽĚ
ĨŽƌŶŽƚŝĐĞƐƐŚĂůůďĞĚĞĞŵĞĚƚŽŚĂǀĞĐŽŵŵĞŶĐĞĚƵƉŽŶƚŚĞĚĂƚĞŽĨƌĞĐĞŝƉƚ͕yWd
ĨĂĐƐŝŵŝůĞĚĞůŝǀĞƌLJǁŝůůďĞĚĞĞŵĞĚƚŽŚĂǀĞĐŽŵŵĞŶĐĞĚŽŶƚŚĞĨŝƌƐƚďƵƐŝŶĞƐƐĚĂLJĨŽůůŽǁŝŶŐ
ƚƌĂŶƐŵŝƐƐŝŽŶ͘ ŵĂŝů ĂŶĚ ƚĞůĞƉŚŽŶĞ ŵĂLJ ďĞ ƵƐĞĚ ĨŽƌ ƉƵƌƉŽƐĞƐ ŽĨ ĂĚŵŝŶŝƐƚĞƌŝŶŐ ƚŚĞ
ŐƌĞĞŵĞŶƚ͕ďƵƚƐŚŽƵůĚŶŽƚďĞƵƐĞĚƚŽŐŝǀĞĂŶLJĨŽƌŵĂůŶŽƚŝĐĞƌĞƋƵŝƌĞĚďLJƚŚĞŐƌĞĞŵĞŶƚ͘
/dzK&ZEdKE
:ŽŶĂƚŚĂŶŚĂǀĞnj͕W
ϭϬϱϱ^ŽƵƚŚ'ƌĂĚLJtĂLJ
ZĞŶƚŽŶ͕tϵϴϬϱϳ
WŚŽŶĞ͗;ϰϮϱͿϰϯϬͲϳϮϬϴ
ũĐŚĂǀĞnjΛƌĞŶƚŽŶǁĂ͘ŐŽǀ
&Ădž͗;ϰϮϱͿϰϯϬͲϳϮϰϭ
KE^h>dEd
^ĂƌĂdĂŶŶĂŚŝůů͕W
&ROE\$YHQXH6XLWH
(YHUHWW:$
WŚŽŶĞ͗;ϮϬϲͿϵϳϬͲϭϵϬϯ
ƐĂƌĂ͘ƚĂŶŶĂŚŝůůΛŬŝŵůĞLJͲŚŽƌŶ͘ĐŽŵ
W'ϳK&ϭϬ
ϭϳ͘ŝƐĐƌŝŵŝŶĂƚŝŽŶWƌŽŚŝďŝƚĞĚ͗džĐĞƉƚƚŽƚŚĞĞdžƚĞŶƚƉĞƌŵŝƚƚĞĚďLJĂďŽŶĂĨŝĚĞŽĐĐƵƉĂƚŝŽŶĂů
ƋƵĂůŝĨŝĐĂƚŝŽŶ͕ƚŚĞŽŶƐƵůƚĂŶƚĂŐƌĞĞƐĂƐĨŽůůŽǁƐ͗
͘ŽŶƐƵůƚĂŶƚ͕ ĂŶĚ ŽŶƐƵůƚĂŶƚ͛Ɛ ĂŐĞŶƚƐ͕ ĞŵƉůŽLJĞĞƐ͕ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐ͕ ĂŶĚ ǀŽůƵŶƚĞĞƌƐ
ǁŝƚŚƌĞŐĂƌĚƚŽƚŚĞtŽƌŬƉĞƌĨŽƌŵĞĚŽƌƚŽďĞƉĞƌĨŽƌŵĞĚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͕ƐŚĂůů
ŶŽƚĚŝƐĐƌŝŵŝŶĂƚĞŽŶƚŚĞďĂƐŝƐŽĨƌĂĐĞ͕ĐŽůŽƌ͕ƐĞdž͕ƌĞůŝŐŝŽŶ͕ŶĂƚŝŽŶĂůŝƚLJ͕ĐƌĞĞĚ͕ŵĂƌŝƚĂů
ƐƚĂƚƵƐ͕ƐĞdžƵĂůŽƌŝĞŶƚĂƚŝŽŶŽƌƉƌĞĨĞƌĞŶĐĞ͕ĂŐĞ;ĞdžĐĞƉƚŵŝŶŝŵƵŵĂŐĞĂŶĚƌĞƚŝƌĞŵĞŶƚ
ƉƌŽǀŝƐŝŽŶƐͿ͕ŚŽŶŽƌĂďůLJĚŝƐĐŚĂƌŐĞĚǀĞƚĞƌĂŶŽƌŵŝůŝƚĂƌLJƐƚĂƚƵƐ͕ŽƌƚŚĞƉƌĞƐĞŶĐĞŽĨĂŶLJ
ƐĞŶƐŽƌLJ͕ŵĞŶƚĂůŽƌƉŚLJƐŝĐĂůŚĂŶĚŝĐĂƉ͕ƵŶůĞƐƐďĂƐĞĚƵƉŽŶĂďŽŶĂĨŝĚĞŽĐĐƵƉĂƚŝŽŶĂů
ƋƵĂůŝĨŝĐĂƚŝŽŶŝŶƌĞůĂƚŝŽŶƐŚŝƉƚŽŚŝƌŝŶŐĂŶĚĞŵƉůŽLJŵĞŶƚ͕ŝŶĞŵƉůŽLJŵĞŶƚŽƌĂƉƉůŝĐĂƚŝŽŶ
ĨŽƌĞŵƉůŽLJŵĞŶƚ͕ƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨƚŚĞĚĞůŝǀĞƌLJŽĨtŽƌŬŽƌĂŶLJŽƚŚĞƌďĞŶĞĨŝƚƐ
ƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͕ŽƌƉƌŽĐƵƌĞŵĞŶƚŽĨŵĂƚĞƌŝĂůƐŽƌƐƵƉƉůŝĞƐ͘
͘dŚĞŽŶƐƵůƚĂŶƚǁŝůůƚĂŬĞĂĨĨŝƌŵĂƚŝǀĞĂĐƚŝŽŶƚŽŝŶƐƵƌĞƚŚĂƚĂƉƉůŝĐĂŶƚƐĂƌĞĞŵƉůŽLJĞĚĂŶĚ
ƚŚĂƚĞŵƉůŽLJĞĞƐĂƌĞƚƌĞĂƚĞĚĚƵƌŝŶŐĞŵƉůŽLJŵĞŶƚǁŝƚŚŽƵƚƌĞŐĂƌĚƚŽƚŚĞŝƌƌĂĐĞ͕ĐƌĞĞĚ͕
ĐŽůŽƌ͕ ŶĂƚŝŽŶĂů ŽƌŝŐŝŶ͕ ƐĞdž͕ ĂŐĞ͕ ƐĞdžƵĂů ŽƌŝĞŶƚĂƚŝŽŶ͕ ƉŚLJƐŝĐĂů͕ƐĞŶƐŽƌLJŽƌŵĞŶƚĂů
ŚĂŶĚŝĐĂƉƐ͕ŽƌŵĂƌŝƚĂůƐƚĂƚƵƐ͘^ƵĐŚĂĐƚŝŽŶƐŚĂůůŝŶĐůƵĚĞ͕ďƵƚŶŽƚďĞůŝŵŝƚĞĚƚŽƚŚĞ
ĨŽůůŽǁŝŶŐĞŵƉůŽLJŵĞŶƚ͕ƵƉŐƌĂĚŝŶŐ͕ĚĞŵŽƚŝŽŶŽƌƚƌĂŶƐĨĞƌ͕ƌĞĐƌƵŝƚŵĞŶƚŽƌƌĞĐƌƵŝƚŵĞŶƚ
ĂĚǀĞƌƚŝƐŝŶŐ͕ůĂLJŽĨĨŽƌƚĞƌŵŝŶĂƚŝŽŶ͕ƌĂƚĞƐŽĨƉĂLJŽƌŽƚŚĞƌĨŽƌŵƐŽĨĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚ
ƐĞůĞĐƚŝŽŶĨŽƌƚƌĂŝŶŝŶŐ͘
͘/ĨƚŚĞŽŶƐƵůƚĂŶƚĨĂŝůƐƚŽĐŽŵƉůLJǁŝƚŚĂŶLJŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͛ƐŶŽŶͲĚŝƐĐƌŝŵŝŶĂƚŝŽŶ
ƉƌŽǀŝƐŝŽŶƐ͕ƚŚĞŝƚLJƐŚĂůůŚĂǀĞƚŚĞƌŝŐŚƚ͕ĂƚŝƚƐŽƉƚŝŽŶ͕ƚŽĐĂŶĐĞůƚŚĞŐƌĞĞŵĞŶƚŝŶ
ǁŚŽůĞŽƌŝŶƉĂƌƚ͘
͘dŚĞŽŶƐƵůƚĂŶƚŝƐƌĞƐƉŽŶƐŝďůĞƚŽďĞĂǁĂƌĞŽĨĂŶĚŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚĂůůĨĞĚĞƌĂů͕ƐƚĂƚĞ
ĂŶĚůŽĐĂůůĂǁƐĂŶĚƌĞŐƵůĂƚŝŽŶƐƚŚĂƚŵĂLJĂĨĨĞĐƚƚŚĞƐĂƚŝƐĨĂĐƚŽƌLJĐŽŵƉůĞƚŝŽŶŽĨƚŚĞ
ƉƌŽũĞĐƚ͕ǁŚŝĐŚŝŶĐůƵĚĞƐďƵƚŝƐŶŽƚůŝŵŝƚĞĚƚŽĨĂŝƌůĂďŽƌůĂǁƐ͕ǁŽƌŬĞƌΖƐĐŽŵƉĞŶƐĂƚŝŽŶ͕
ĂŶĚdŝƚůĞs/ŽĨƚŚĞ&ĞĚĞƌĂůŝǀŝůZŝŐŚƚƐĐƚŽĨϭϵϲϰ͕ĂŶĚǁŝůůĐŽŵƉůLJǁŝƚŚŝƚLJŽĨZĞŶƚŽŶ
ŽƵŶĐŝůZĞƐŽůƵƚŝŽŶEƵŵďĞƌϰϬϴϱ͘
ϭϴ͘DŝƐĐĞůůĂŶĞŽƵƐ͗dŚĞƉĂƌƚŝĞƐŚĞƌĞďLJĂĐŬŶŽǁůĞĚŐĞ͗
͘dŚĞŝƚLJŝƐŶŽƚƌĞƐƉŽŶƐŝďůĞƚŽƚƌĂŝŶŽƌƉƌŽǀŝĚĞƚƌĂŝŶŝŶŐĨŽƌŽŶƐƵůƚĂŶƚ͘
͘ŽŶƐƵůƚĂŶƚǁŝůůŶŽƚďĞƌĞŝŵďƵƌƐĞĚĨŽƌũŽďƌĞůĂƚĞĚĞdžƉĞŶƐĞƐĞdžĐĞƉƚƚŽƚŚĞĞdžƚĞŶƚ
ƐƉĞĐŝĨŝĐĂůůLJĂŐƌĞĞĚǁŝƚŚŝŶƚŚĞĂƚƚĂĐŚĞĚĞdžŚŝďŝƚƐ͘
͘ŽŶƐƵůƚĂŶƚƐŚĂůůĨƵƌŶŝƐŚĂůůƚŽŽůƐĂŶĚͬŽƌŵĂƚĞƌŝĂůƐŶĞĐĞƐƐĂƌLJƚŽƉĞƌĨŽƌŵƚŚĞtŽƌŬ
ĞdžĐĞƉƚƚŽƚŚĞĞdžƚĞŶƚƐƉĞĐŝĨŝĐĂůůLJĂŐƌĞĞĚǁŝƚŚŝŶƚŚĞĂƚƚĂĐŚĞĚĞdžŚŝďŝƚƐ͘
͘/ŶƚŚĞĞǀĞŶƚƐƉĞĐŝĂůƚƌĂŝŶŝŶŐ͕ůŝĐĞŶƐŝŶŐ͕ŽƌĐĞƌƚŝĨŝĐĂƚŝŽŶŝƐƌĞƋƵŝƌĞĚĨŽƌŽŶƐƵůƚĂŶƚƚŽ
ƉƌŽǀŝĚĞtŽƌŬŚĞͬƐŚĞǁŝůůĂĐƋƵŝƌĞŽƌŵĂŝŶƚĂŝŶƐƵĐŚĂƚŚŝƐͬŚĞƌŽǁŶĞdžƉĞŶƐĞĂŶĚ͕ŝĨ
W'ϴK&ϭϬ
ŽŶƐƵůƚĂŶƚĞŵƉůŽLJƐ͕ƐƵďͲĐŽŶƚƌĂĐƚƐ͕ŽƌŽƚŚĞƌǁŝƐĞĂƐƐŝŐŶƐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽƉĞƌĨŽƌŵ
ƚŚĞtŽƌŬ͕ƐĂŝĚĞŵƉůŽLJĞĞͬƐƵďͲĐŽŶƚƌĂĐƚŽƌͬĂƐƐŝŐŶĞĞǁŝůůĂĐƋƵŝƌĞĂŶĚŽƌŵĂŝŶƚĂŝŶƐƵĐŚ
ƚƌĂŝŶŝŶŐ͕ůŝĐĞŶƐŝŶŐ͕ŽƌĐĞƌƚŝĨŝĐĂƚŝŽŶ͘
͘dŚŝƐŝƐĂŶŽŶͲĞdžĐůƵƐŝǀĞĂŐƌĞĞŵĞŶƚĂŶĚŽŶƐƵůƚĂŶƚŝƐĨƌĞĞƚŽƉƌŽǀŝĚĞŚŝƐͬŚĞƌtŽƌŬƚŽ
ŽƚŚĞƌĞŶƚŝƚŝĞƐ͕ƐŽůŽŶŐĂƐƚŚĞƌĞŝƐŶŽŝŶƚĞƌƌƵƉƚŝŽŶŽƌŝŶƚĞƌĨĞƌĞŶĐĞǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶŽĨ
tŽƌŬĐĂůůĞĚĨŽƌŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͘
&͘ŽŶƐƵůƚĂŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌŚŝƐͬŚĞƌŽǁŶŝŶƐƵƌĂŶĐĞ͕ŝŶĐůƵĚŝŶŐ͕ďƵƚŶŽƚůŝŵŝƚĞĚƚŽ
ŚĞĂůƚŚŝŶƐƵƌĂŶĐĞ͘
'͘ŽŶƐƵůƚĂŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌŚŝƐͬŚĞƌŽǁŶtŽƌŬĞƌ͛ƐŽŵƉĞŶƐĂƚŝŽŶĐŽǀĞƌĂŐĞĂƐǁĞůůĂƐ
ƚŚĂƚĨŽƌĂŶLJƉĞƌƐŽŶƐĞŵƉůŽLJĞĚďLJƚŚĞŽŶƐƵůƚĂŶƚ͘
ϭϵ͘KƚŚĞƌWƌŽǀŝƐŝŽŶƐ͗
͘ƉƉƌŽǀĂůƵƚŚŽƌŝƚLJ͘ĂĐŚŝŶĚŝǀŝĚƵĂůĞdžĞĐƵƚŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚŽŶďĞŚĂůĨŽĨƚŚĞŝƚLJ
ĂŶĚŽŶƐƵůƚĂŶƚƌĞƉƌĞƐĞŶƚƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚƐƵĐŚŝŶĚŝǀŝĚƵĂůƐĂƌĞĚƵůLJĂƵƚŚŽƌŝnjĞĚƚŽ
ĞdžĞĐƵƚĞĂŶĚĚĞůŝǀĞƌƚŚŝƐŐƌĞĞŵĞŶƚŽŶďĞŚĂůĨŽĨƚŚĞŝƚLJŽƌŽŶƐƵůƚĂŶƚ͘
͘'ĞŶĞƌĂůĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚDĂŶĂŐĞŵĞŶƚ͘dŚĞŝƚLJ͛ƐƉƌŽũĞĐƚŵĂŶĂŐĞƌŝƐ:ŽŶĂƚŚĂŶ
ŚĂǀĞnj͕W͘/ŶƉƌŽǀŝĚŝŶŐtŽƌŬ͕ŽŶƐƵůƚĂŶƚƐŚĂůůĐŽŽƌĚŝŶĂƚĞǁŝƚŚƚŚĞŝƚLJ͛ƐĐŽŶƚƌĂĐƚ
ŵĂŶĂŐĞƌŽƌŚŝƐͬŚĞƌĚĞƐŝŐŶĞĞ͘
͘ŵĞŶĚŵĞŶƚ ĂŶĚ DŽĚŝĨŝĐĂƚŝŽŶ͘ dŚŝƐ ŐƌĞĞŵĞŶƚ ŵĂLJ ďĞ ĂŵĞŶĚĞĚ ŽŶůLJďLJ ĂŶ
ŝŶƐƚƌƵŵĞŶƚŝŶǁƌŝƚŝŶŐ͕ĚƵůLJĞdžĞĐƵƚĞĚďLJďŽƚŚWĂƌƚŝĞƐ͘
͘ŽŶĨůŝĐƚƐ͘/ŶƚŚĞĞǀĞŶƚŽĨĂŶLJŝŶĐŽŶƐŝƐƚĞŶĐŝĞƐďĞƚǁĞĞŶŽŶƐƵůƚĂŶƚƉƌŽƉŽƐĂůƐĂŶĚƚŚŝƐ
ŐƌĞĞŵĞŶƚ͕ƚŚĞƚĞƌŵƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůƉƌĞǀĂŝů͘ŶLJĞdžŚŝďŝƚƐͬĂƚƚĂĐŚŵĞŶƚƐƚŽ
ƚŚŝƐŐƌĞĞŵĞŶƚĂƌĞŝŶĐŽƌƉŽƌĂƚĞĚďLJƌĞĨĞƌĞŶĐĞŽŶůLJƚŽƚŚĞĞdžƚĞŶƚŽĨƚŚĞƉƵƌƉŽƐĞĨŽƌ
ǁŚŝĐŚ ƚŚĞLJ ĂƌĞ ƌĞĨĞƌĞŶĐĞĚ ǁŝƚŚŝŶ ƚŚŝƐ ŐƌĞĞŵĞŶƚ͘ dŽ ƚŚĞ ĞdžƚĞŶƚĂ ŽŶƐƵůƚĂŶƚ
ƉƌĞƉĂƌĞĚĞdžŚŝďŝƚĐŽŶĨůŝĐƚƐǁŝƚŚƚŚĞƚĞƌŵƐŝŶƚŚĞďŽĚLJŽĨƚŚŝƐŐƌĞĞŵĞŶƚŽƌĐŽŶƚĂŝŶƐ
ƚĞƌŵƐƚŚĂƚĂƌĞĞdžƚƌĂŶĞŽƵƐƚŽƚŚĞƉƵƌƉŽƐĞĨŽƌǁŚŝĐŚŝƚŝƐƌĞĨĞƌĞŶĐĞĚ͕ƚŚĞƚĞƌŵƐŝŶƚŚĞ
ďŽĚLJ ŽĨ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ƐŚĂůů ƉƌĞǀĂŝů ĂŶĚ ƚŚĞ ĞdžƚƌĂŶĞŽƵƐ ƚĞƌŵƐ ƐŚĂůů ŶŽƚ ďĞ
ŝŶĐŽƌƉŽƌĂƚĞĚŚĞƌĞŝŶ͘
͘'ŽǀĞƌŶŝŶŐ>Ăǁ͘dŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůďĞŵĂĚĞŝŶĂŶĚƐŚĂůůďĞŐŽǀĞƌŶĞĚďLJĂŶĚ
ŝŶƚĞƌƉƌĞƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞůĂǁƐŽĨƚŚĞ^ƚĂƚĞŽĨtĂƐŚŝŶŐƚŽŶĂŶĚƚŚĞŝƚLJŽĨ
ZĞŶƚŽŶ͘ŽŶƐƵůƚĂŶƚĂŶĚĂůůŽĨƚŚĞŽŶƐƵůƚĂŶƚ͛ƐĞŵƉůŽLJĞĞƐƐŚĂůůƉĞƌĨŽƌŵƚŚĞtŽƌŬŝŶ
ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ Ăůů ĂƉƉůŝĐĂďůĞ ĨĞĚĞƌĂů͕ ƐƚĂƚĞ͕ ĐŽƵŶƚLJ ĂŶĚ ĐŝƚLJůĂǁƐ͕ ĐŽĚĞƐ ĂŶĚ
ŽƌĚŝŶĂŶĐĞƐ͘
&͘:ŽŝŶƚƌĂĨƚŝŶŐĨĨŽƌƚ͘dŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůďĞĐŽŶƐŝĚĞƌĞĚĨŽƌĂůůƉƵƌƉŽƐĞƐĂƐƉƌĞƉĂƌĞĚ
ďLJƚŚĞũŽŝŶƚĞĨĨŽƌƚƐŽĨƚŚĞWĂƌƚŝĞƐĂŶĚƐŚĂůůŶŽƚďĞĐŽŶƐƚƌƵĞĚĂŐĂŝŶƐƚŽŶĞƉĂƌƚLJŽƌƚŚĞ
W'ϵK&ϭϬ
ŽƚŚĞƌĂƐĂƌĞƐƵůƚŽĨƚŚĞƉƌĞƉĂƌĂƚŝŽŶ͕ ƐƵďƐƚŝƚƵƚŝŽŶ͕ ƐƵďŵŝƐƐŝŽŶŽƌŽƚŚĞƌĞǀĞŶƚŽĨ
ŶĞŐŽƚŝĂƚŝŽŶ͕ĚƌĂĨƚŝŶŐŽƌĞdžĞĐƵƚŝŽŶ͘
'͘:ƵƌŝƐĚŝĐƚŝŽŶĂŶĚsĞŶƵĞ͘ŶLJůĂǁƐƵŝƚŽƌůĞŐĂůĂĐƚŝŽŶďƌŽƵŐŚƚďLJĂŶLJƉĂƌƚLJƚŽĞŶĨŽƌĐĞŽƌ
ŝŶƚĞƌƉƌĞƚƚŚŝƐŐƌĞĞŵĞŶƚŽƌĂŶLJŽĨŝƚƐƚĞƌŵƐŽƌĐŽǀĞŶĂŶƚƐƐŚĂůůďĞďƌŽƵŐŚƚŝŶƚŚĞ<ŝŶŐ
ŽƵŶƚLJ^ƵƉĞƌŝŽƌŽƵƌƚĨŽƌƚŚĞ^ƚĂƚĞŽĨtĂƐŚŝŶŐƚŽŶĂƚƚŚĞDĂůĞŶŐZĞŐŝŽŶĂů:ƵƐƚŝĐĞ
ĞŶƚĞƌŝŶ<ĞŶƚ͕<ŝŶŐŽƵŶƚLJ͕tĂƐŚŝŶŐƚŽŶ͕ŽƌŝƚƐƌĞƉůĂĐĞŵĞŶƚŽƌƐƵĐĐĞƐƐŽƌ͘ŽŶƐƵůƚĂŶƚ
ŚĞƌĞďLJĞdžƉƌĞƐƐůLJĐŽŶƐĞŶƚƐƚŽƚŚĞƉĞƌƐŽŶĂůĂŶĚĞdžĐůƵƐŝǀĞũƵƌŝƐĚŝĐƚŝŽŶĂŶĚǀĞŶƵĞŽĨ
ƐƵĐŚĐŽƵƌƚĞǀĞŶŝĨŽŶƐƵůƚĂŶƚŝƐĂĨŽƌĞŝŐŶĐŽƌƉŽƌĂƚŝŽŶŶŽƚƌĞŐŝƐƚĞƌĞĚǁŝƚŚƚŚĞ^ƚĂƚĞŽĨ
tĂƐŚŝŶŐƚŽŶ͘
,͘^ĞǀĞƌĂďŝůŝƚLJ͘ĐŽƵƌƚŽĨĐŽŵƉĞƚĞŶƚũƵƌŝƐĚŝĐƚŝŽŶ͛ƐĚĞƚĞƌŵŝŶĂƚŝŽŶƚŚĂƚĂŶLJƉƌŽǀŝƐŝŽŶŽƌ
ƉĂƌƚŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐŝůůĞŐĂůŽƌƵŶĞŶĨŽƌĐĞĂďůĞƐŚĂůůŶŽƚĐĂŶĐĞůŽƌŝŶǀĂůŝĚĂƚĞƚŚĞ
ƌĞŵĂŝŶĚĞƌŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕ǁŚŝĐŚƐŚĂůůƌĞŵĂŝŶŝŶĨƵůůĨŽƌĐĞĂŶĚĞĨĨĞĐƚ͘
/͘^ŽůĞĂŶĚŶƚŝƌĞŐƌĞĞŵĞŶƚ͘dŚŝƐŐƌĞĞŵĞŶƚĐŽŶƚĂŝŶƐƚŚĞĞŶƚŝƌĞĂŐƌĞĞŵĞŶƚŽĨƚŚĞ
WĂƌƚŝĞƐĂŶĚĂŶLJƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐŽƌƵŶĚĞƌƐƚĂŶĚŝŶŐƐ͕ǁŚĞƚŚĞƌŽƌĂůŽƌǁƌŝƚƚĞŶ͕ŶŽƚ
ŝŶĐŽƌƉŽƌĂƚĞĚĂƌĞĞdžĐůƵĚĞĚ͘
:͘dŝŵĞŝƐŽĨƚŚĞƐƐĞŶĐĞ͘dŝŵĞŝƐŽĨƚŚĞĞƐƐĞŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚĞĂĐŚĂŶĚĂůůŽĨ
ŝƚƐƉƌŽǀŝƐŝŽŶƐŝŶǁŚŝĐŚƉĞƌĨŽƌŵĂŶĐĞŝƐĂĨĂĐƚŽƌ͘ĚŚĞƌĞŶĐĞƚŽĐŽŵƉůĞƚŝŽŶĚĂƚĞƐƐĞƚ
ĨŽƌƚŚŝŶƚŚĞĚĞƐĐƌŝƉƚŝŽŶŽĨƚŚĞtŽƌŬŝƐĞƐƐĞŶƚŝĂůƚŽƚŚĞŽŶƐƵůƚĂŶƚ͛ƐƉĞƌĨŽƌŵĂŶĐĞŽĨ
ƚŚŝƐŐƌĞĞŵĞŶƚ͘
<͘dŚŝƌĚͲWĂƌƚLJĞŶĞĨŝĐŝĂƌŝĞƐ͘EŽƚŚŝŶŐŝŶƚŚŝƐŐƌĞĞŵĞŶƚŝƐŝŶƚĞŶĚĞĚƚŽ͕ŶŽƌƐŚĂůůďĞ
ĐŽŶƐƚƌƵĞĚƚŽŐŝǀĞĂŶLJƌŝŐŚƚƐŽƌďĞŶĞĨŝƚƐŝŶƚŚĞŐƌĞĞŵĞŶƚƚŽĂŶLJŽŶĞŽƚŚĞƌƚŚĂŶƚŚĞ
WĂƌƚŝĞƐ͕ĂŶĚĂůůĚƵƚŝĞƐĂŶĚƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐƵŶĚĞƌƚĂŬĞŶƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚǁŝůů
ďĞĨŽƌƚŚĞƐŽůĞĂŶĚĞdžĐůƵƐŝǀĞďĞŶĞĨŝƚŽĨƚŚĞWĂƌƚŝĞƐĂŶĚŶŽŽŶĞĞůƐĞ͘
>͘ŝŶĚŝŶŐĨĨĞĐƚ͘dŚĞWĂƌƚŝĞƐĞĂĐŚďŝŶĚƚŚĞŵƐĞůǀĞƐ͕ƚŚĞŝƌƉĂƌƚŶĞƌƐ͕ƐƵĐĐĞƐƐŽƌƐ͕ĂƐƐŝŐŶƐ͕
ĂŶĚůĞŐĂůƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐƚŽƚŚĞŽƚŚĞƌƉĂƌƚLJƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͕ĂŶĚƚŽƚŚĞƉĂƌƚŶĞƌƐ͕
ƐƵĐĐĞƐƐŽƌƐ͕ĂƐƐŝŐŶƐ͕ĂŶĚůĞŐĂůƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐŽĨƐƵĐŚŽƚŚĞƌƉĂƌƚLJǁŝƚŚƌĞƐƉĞĐƚƚŽĂůů
ĐŽǀĞŶĂŶƚƐŽĨƚŚĞŐƌĞĞŵĞŶƚ͘
D͘tĂŝǀĞƌƐ͘ůůǁĂŝǀĞƌƐƐŚĂůůďĞŝŶǁƌŝƚŝŶŐĂŶĚƐŝŐŶĞĚďLJƚŚĞǁĂŝǀŝŶŐƉĂƌƚLJ͘ŝƚŚĞƌƉĂƌƚLJ͛Ɛ
ĨĂŝůƵƌĞƚŽĞŶĨŽƌĐĞĂŶLJƉƌŽǀŝƐŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůŶŽƚďĞĂǁĂŝǀĞƌĂŶĚƐŚĂůůŶŽƚ
ƉƌĞǀĞŶƚĞŝƚŚĞƌƚŚĞŝƚLJŽƌŽŶƐƵůƚĂŶƚĨƌŽŵĞŶĨŽƌĐŝŶŐƚŚĂƚƉƌŽǀŝƐŝŽŶŽƌĂŶLJŽƚŚĞƌ
ƉƌŽǀŝƐŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝŶƚŚĞĨƵƚƵƌĞ͘tĂŝǀĞƌŽĨďƌĞĂĐŚŽĨĂŶLJƉƌŽǀŝƐŝŽŶŽĨƚŚŝƐ
ŐƌĞĞŵĞŶƚƐŚĂůůŶŽƚďĞĚĞĞŵĞĚƚŽďĞĂǁĂŝǀĞƌŽĨĂŶLJƉƌŝŽƌŽƌƐƵďƐĞƋƵĞŶƚďƌĞĂĐŚ
ƵŶůĞƐƐŝƚŝƐĞdžƉƌĞƐƐůLJǁĂŝǀĞĚŝŶǁƌŝƚŝŶŐ͘
W'ϭϬK&ϭϬ
E͘ŽƵŶƚĞƌƉĂƌƚƐ͘dŚĞWĂƌƚŝĞƐŵĂLJĞdžĞĐƵƚĞƚŚŝƐŐƌĞĞŵĞŶƚŝŶĂŶLJŶƵŵďĞƌ ŽĨ
ĐŽƵŶƚĞƌƉĂƌƚƐ͕ĞĂĐŚŽĨǁŚŝĐŚƐŚĂůůĐŽŶƐƚŝƚƵƚĞĂŶŽƌŝŐŝŶĂů͕ĂŶĚĂůůŽĨǁŚŝĐŚǁŝůůƚŽŐĞƚŚĞƌ
ĐŽŶƐƚŝƚƵƚĞƚŚŝƐŽŶĞŐƌĞĞŵĞŶƚ͘
/Et/dE^^t,ZK&͕ƚŚĞWĂƌƚŝĞƐŚĂǀĞǀŽůƵŶƚĂƌŝůLJĞŶƚĞƌĞĚŝŶƚŽƚŚŝƐŐƌĞĞŵĞŶƚĂƐŽĨƚŚĞĚĂƚĞ
ůĂƐƚƐŝŐŶĞĚďLJƚŚĞWĂƌƚŝĞƐďĞůŽǁ͘
/dzK&ZEdKE
LJ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
KE^h>dEd
LJ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ƌŵŽŶĚŽWĂǀŽŶĞ
DĂLJŽƌ
ĞĂŶŶĂDĂƌƚŝŶ͕W
<ŝŵůĞLJ,ŽƌŶͲWƌŝŶĐŝƉĂůŶŐŝŶĞĞƌ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ĂƚĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
ĂƚĞ
ƚƚĞƐƚ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
:ĂƐŽŶ͘^ĞƚŚ
ŝƚLJůĞƌŬ
ƉƉƌŽǀĞĚĂƐƚŽ>ĞŐĂů&Žƌŵ
LJ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
Cheryl L. Beyer
Sr. Assistant City Attorney
ŽŶƚƌĂĐƚdĞŵƉůĂƚĞhƉĚĂƚĞĚϱͬϮϭͬϮϬϮϭ
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ĞĂŶŶĂ DĂƌƌƚƚƚƚƚƚƚƚƚƚƚƚƚŝŶ WBradly J Lincoln, PE
Kimley-Horn - Associate
March 23, 2026
Bradly J Lincoln, PE
Kimley-Horn - Associate
March 23, 20263/25/2026
Approved by Cheryl Beyer via email 2/20/2026
Page 1
SCOPE OF SERVICES
City of Renton
NE 24th and 16th St Asbestos-Cement (AC) Water Main Replacement
February 2026
BACKGROUND
Based on discussions with City of Renton staff (City), Kimley-Horn and Associates, Inc (Kimley-Horn)
will provide engineering design and construction support services associated with the NE 24th and
16th St Asbestos-Cement (AC) Water Main Replacement Project. The project will include the design
for replacement of approximately 3,250 linear feet of existing 8- and 12-inch diameter asbestos-
cement water main on NE 24th Street (between Jones Avenue NE and Edmonds Avenue NE) and NE
16th Street (between Edmonds Avenue NE and Harrington Avenue with 12-inch diameter ductile iron
(DI) water main. Refer to Figures 1 through 3 for site maps and project limits.
In conjunction with the water main replacement, the project also includes:
Full street 2-inch grind and overlay within the project limits along NE 24th Street and NE 16th
Street;
Design of a new 500 liner foot, 5-foot-wide sidewalk on the north side of NE 24th Street,
between Aberdeen Avenue NE and Camas Avenue NE;
Design of five (5) new curb bulb-outs along NE 24th Street at the intersections with Aberdeen
Avenue NE and Blaine Avenue NE;
Design of five (5) curb ramps that meet ADA and Public Right-of-Way Accessibility
Guidelines (PROWAG) requirements;
Design of impacted catch basins and storm pipes as required by the new curb installation;
and
Design of four (4) streetlights in front of Kennydale Lions Park along the north side of NE 24th
Street.
SCOPE OF SERVICES
The scope of services consists of the following tasks:
Task 100 – Project Management and Coordination
Task 200 – Data Collection and Review
Task 300 – Preliminary (30%) Design Services
Task 310 – 60% Design Services
Task 320 – Final Design Services
Task 400 – Drainage Report
Task 500 – Bidding Support Services
Task 510 – Construction Phase Services
Task 600 – Subconsultant Services
o Task 601 – Survey Services (DHA)
o Task 602 – Potholing and Utility Locating Services (APS)
o Task 603 – Infiltration Study Services (GeoEngineers)
Task 700 – Management Reserve
EXHIBIT A
Page 2
Based on discussions with the City, our effort will include the following tasks:
TASK 100 – Project Management and Coordination
Kimley-Horn will provide project management throughout the project duration, which includes:
Conduct one (1) Kick-Off Meeting with the City to be held over MSTeams and issue meeting
summary.
Coordinate with the City’s Project Manager, including bi-weekly check-ins via MSTeams or
phone calls, and up to three (3) design review meetings with the City including issuing
meeting summaries.
Prepare up to 10 monthly invoices and progress summary.
Internal coordination including management of staffing schedule, and budget.
Coordination with subconsultants to progress tasks identified in this scope of work.
Deliverables:
Meeting agendas and meeting summary (Kick-off and design review meetings).
Monthly invoices and progress summaries.
Baseline project schedule and schedule updates, as necessary.
Task Assumptions:
City staff will attend and provide input at project Kick-off Meeting and design review meetings.
Project Kick-off Meeting is anticipated to be two (2) hours in duration, held virtually via
MSTeams, and attended by up to three (3) Kimley-Horn staff.
The 30%, 60%, and 90% Design Review Meetings are anticipated to be two (2) hours in
duration, held virtually via MSTeams, and attended by up to two (2) Kimley-Horn staff.
Meeting summaries will include a summary of the key decisions and action items and will be
sent out via email.
Bi-weekly check-in meetings are anticipated to be 30 minutes in duration, attended by up to
two (2) Kimley-Horn staff, held virtually via MSTeams.
Project duration is assumed to be 10 months from date of Notice to Proceed
TASK 200 – Data Collection and Review
The effort related to this task is to collect and review data received from the City and franchise
utilities. Data collection and review will include the following:
Prepare Request for Information (RFI) for needed project background information from the
City that is not readily available on the City’s GIS.
Review background information:
o GIS Records within project areas
o As-Builts on City of Renton utilities within project areas
o Previous environmental studies and geotechnical reports
Contact franchise utility companies for cable, power, fiberoptic records if applicable
Deliverables:
Request for Information (RFI).
Page 3
TASK 300 – Preliminary (30%) Design Services
Kimley-Horn will prepare and submit for the City’s review Preliminary Design documents. Services
under this task will include the following:
Site visit to review topographic survey against field conditions, anticipated to be one (1) day
by up to two (2) Kimley-Horn staff.
Prepare Preliminary (30%) Design Plans for water main upgrades. It is anticipated the
Preliminary Plan Set will contain up to 20 sheets.
Plans will consist of:
o Cover
o Abbreviations and Legend
o Horizontal Control and Sheet Layout
o Water Plan Sheets (plan view only)
o Frontage Improvement Plans (including preliminary location of the streetlights,
preliminary layout of bulb-outs and curb ramps. Full ADA curb ramp design will not be
included.)
Prepare planning level Engineer’s Opinion of Probable Construction Cost with 30%
Contingency (EOPCC).
Prepare design memo documenting design assumptions and questions for the City.
Provide QA/QC of Preliminary Design deliverables.
Conduct Plan-In-Hand walk-through with City Engineering and Operations/Maintenance staff
following Preliminary Design plan and EOPCC submittal, anticipated to be completed in one
(1) site visit with up to two (2) Kimley-Horn staff.
Deliverables:
PDFs of 30% Design Plans and EOPCC. Word document of Design Memo. Excel File of
EOPCC including quantity take-offs.
Assumptions:
The City will provide Kimley-Horn recent bid tabs and indicate desired bid items, along with
bid items measurement and payment descriptions for development of the EOPCC.
TASK 310 – 60% Design Services
Kimley-Horn will prepare Final Design documents. As requested by the City, Kimley-Horn will provide
permitting support for the City-led permitting. Efforts involved in these tasks will include the following:
Provide Construction Plans including the following sheets. It is anticipated the 60% Design
Plan Set will contain up to 55 sheets.
o Cover
o General Notes, Abbreviations and Legend
o Horizontal Control and Sheet Layout
o Existing Conditions and TESC
o Water Main Plan and Profile Sheets
o Water Main Connection Details
o Storm Plan and Profile Sheets
Page 4
o Lighting and Wiring Plans
o Restoration Sheets, including frontage improvements
o ADA Curb Ramps Sheets and Details, with slopes and elevations for up to five (5)
ramps and transitions to new sidewalk.
o Water Standard Details
o Storm Standard Details
o Roadway Details
o Lighting Details
Provide 60% Design EOPCC.
Provide Design Memo outlining assumptions and questions to be discussed at 60% Design
submittal stage.
Maximum Extent Feasible (MEF) Documentation for ramps that cannot meet current City of
Renton ADA standards.
Quality Assurance/Quality Control (QA/QC) and constructability review of 60% Deliverables.
Development of a Potholing Plan following submittal of the 60% Design.
Deliverables:
60% Design Submittals – PDFs of Plans and EOPCC. Excel File of EOPCC including
quantity take-offs. Word document of Design Memo.
MEF Documentation, as necessary.
Potholing Plan (PDF)
Assumptions:
The City will be responsible for the development of the 60% Design Specifications.
Catch basins and storm pipes will be designed to be consistent with the City of Renton 2022
Surface Water Design Manual.
ADA curb ramp designs will include point elevations and slopes within the ramp footprint and
transition to new sidewalk and to existing properties.
Services
Kimley-Horn will prepare Final Design documents. Efforts involved in these tasks will include the
following:
Provide Construction Plans including the following sheets. It is anticipated the final Bid-Ready
Construction Plan Set will contain up to 55 sheets.
o Cover
o General Notes, Abbreviations and Legend
o Horizontal Control and Sheet Layout
o Existing Conditions and TESC
o Water Main Plan and Profile Sheets
o Water Main Connection Details
o Storm Plan and Profile Sheets
o Restoration Sheets, including frontage improvements
o ADA Curb Ramps Sheets and Details, with slopes and elevations for up to five (5)
ramps and transitions to new sidewalk.
o Water Standard Details
Page 5
o Storm Standard Details
o Roadway Details
o Street Lighting and Wiring Plans
o Lighting Details
Provide EOPCC and Bid Schedule. Kimley-Horn will work with the City during the design
process to determine preferred bid items and units.
Provide Design Memo outlining assumptions and questions to be discussed at 90% Design
submittal stage.
Addressing one (1) round of comments on MEF Documentation for ramps that cannot meet
current City of Renton ADA standards.
Quality Assurance/Quality Control (QA/QC) and constructability review of deliverables.
QA/QC review of the City-prepared 90% Design Specifications.
Provide permitting support to the City-led permit application, as requested, anticipated to be
supporting plans, quantities, and work descriptions. The City will be responsible for obtaining
the following permits:
o Tree Permit, or approval from the City’s Urban and Community Forestry Department
o Civil Construction Permit
o Utility Permit
o Right-of-Way Permit
Deliverables:
90% Design Submittals – PDFs of Plans and EOPCC. Excel File of EOPCC including
quantity take-offs. Word document of Design Memo. PDF of Kimley-Horn’s QA/QC review
comments on the City prepared 90% Design Specifications. Final MEF Documentation, as
necessary.
Bid-Ready Submittal – PDFs of Plans and EOPCC, AutoCAD base file of Plans.
Assumptions:
The City will be responsible for the development of the 90% Design and Bid-Ready
Specifications. The City will be responsible for stamping and signing the Bid-Ready
Specifications.
Street Lighting and Wiring Plans will be for four (4) streetlights conforming to the City’s
Standard Plan 116.1, spaced approximately 60-feet apart. No photometric analysis will be
performed on the project site.
Catch basins and storm pipes will be designed to be consistent with the City of Renton 2022
Surface Water Design Manual.
ADA curb ramp designs will include point elevations and slopes within the ramp footprint and
transition to new sidewalk and to existing properties.
TASK 400 – Drainage Report
The effort under this task is to provide a Full Drainage Review Technical Information Report (TIR).
Efforts involved in these tasks will include the following:
Complete downstream analysis field work and submit memorandum outlining which core
requirements apply and possible BMPs.
Memorandum Review Meeting, held virtually by up to two (2) Kimley-Horn staff.
Page 6
Provide a Full Drainage Review TIR for the new and replaced impervious areas (curbs,
sidewalks, pavement widening, ramps, etc.). The TIR will incorporate appropriate stormwater
management and low-impact development (LID) techniques, as required by Renton's Surface
Water Design Manual, particularly around the new sidewalks and curb bulb-outs.
Deliverables:
Downstream Analysis Memorandum (Word and PDF) – 30% Deliverable
Draft TIR (Word) – 60% Deliverable
Final TIR (Word and PDF) – 90% Deliverable
Assumptions:
This project is located in Zone 2 of the City’s Aquifer Protection Area. Stormwater BMPs must
comply with Special Requirement #6 of the Renton's Surface Water Design Manual.
This project is within a basic flow control area and the project will create less than 5,000 of
new plus replaced pollution generating hard surface, making it exempt from water quality
treatment.
The full drainage report will incorporate the 60% Design Plans.
Construction Stormwater Pollution Prevention Plan (SWPPP) and Operations & Maintenance
Manual will be prepared with the 90% TIR.
TASK 500 – Bidding Support Services
Kimley-Horn will assist the City with bidding by answering bidder questions and issuing addenda as
necessary. The budget for this task assumes up to three (3) addenda issued.
Deliverables:
Addenda in PDF
Assumptions:
The City will advertise the project for bid, upload bid-ready documents to bidding websites,
conduct the bid opening and prepare the bid tabulation.
TASK 510 – Construction Phase Services
Kimley-Horn will provide construction phase services during construction, as requested by the City.
Tasks that may be requested by the City include the following:
Attendance at City-led Pre-Con Meeting and construction meetings.
Respond to Contractor’s requests for information (RFIs) as requested by City.
Field observations as requested by City.
Preparation of PDF and AutoCAD Record Drawings using contractor provided red-lined PDF
record drawings.
Deliverables:
Responses to RFIs in PDF
Record Drawings in PDF and AutoCAD
Page 7
Assumptions:
A budgetary amount of up to $10,000 is assumed for this task for construction phase support
services to be provided as requested by the City.
The City will be responsible for leading all meetings, preparing meeting agendas, and issuing
meeting minutes
As-builts will be based off City provided contractor PDF red-lines.
TASK 600 – Subconsultant Services
TASK 601 – Survey Services (DHA)
Duane Harman and Associates, Inc. (DHA), as a subconsultant to Kimley-Horn, will complete
professional land surveying & mapping services. Services under this task will include the survey at
the following sites:
Site 1: NE 24th St between Jones Avenue NE and Edmonds Avenue NE
The reach is approximately 2,700 lineal feet, containing eight (8) street intersections, curbs,
walkways, and underground utilities (no overhead utilities encountered in the field review). The City
reports approximately 44 water service connections. In addition, the reach includes the design of 500
feet of sidewalk and five (5) curb bulb-outs. Intersection mapping will extend 50' north and south for
full intersection clarity.
Site 2: NE 16th St between Edmonds Avenue NE and Harrington Avenue NE
The reach is approximately 790 lineal feet, containing two (2) street intersections, curbs, walkways,
and above and below grade utilities (no overhead utilities encountered in the field review).
Topographic Mapping:
Topographic mapping will consist of the dedicated street right-of-ways and up to five (5) feet
beyond the right-of-ways and is to include, but not limited to, all above ground planimetric
features, which includes, but not limited to, curbs, walks, fences, trees (greater than ‘6” in
diameter), shrubs etc., and all above and underground utilities, as specified. It is anticipated
the survey will go along at about 300 lineal feet per day.
Two-man field survey crews will be utilized to establish site control and perform the survey.
Onsite underground utility locates will be completed by APS as part of Task 602, and DHA
will submit a “One-Call” utility locate request, to engage the City to locate their underground
utilities.
A 10’ x 10’ detailed survey will be performed around water meters, hydrants, and vaults, for
design, and construction staging within the project limits.
Site 1 will be surveyed at a 10-foot grid in the areas of the proposed curb ramps and bulb-
outs.
Pothole Mapping:
An allowance has been included for survey of up to eight (8) potholes.
Page 8
Deliverables:
Autodesk Civil 3D 2026.dwg file format of topographic survey, drawing scale to be 1”=20’,
with one (1) foot contours.
Task Assumptions:
Field data will be processed in accordance with the City of Renton Standards.
Horizontal Datum: City of Renton NAD83(1991), US feet. Vertical Datum: City of Renton
prescribed NAVD88, US feet.
Two-man field survey crews will be utilized to establish site control and perform the survey.
Kimley-Horn to provide an onsite underground utility locate, and DHA will submit a One-Call
utility locate request, to engage the City to locate their underground utilities.
Rights-of-entry are not included in this scope of work and are not anticipated to be needed.
TASK 602 – Potholing and Utility Locating Services (APS)
Applied Professional Services, Inc. (APS), as a subconsultant to Kimley-Horn, will complete utility
potholing and locating/marking of non-City utilities.
Utility Locating Services
APS will employ all industry and best practices to designate and mark the known conductible
and/or non-conductible utilities within the project boundaries.
APS will sweep the area, after the known utilities have been marked, to attempt to identify
any unknown or abandoned utilities.
The project boundaries are defined by Figures 1 through 3.
Potholing Services
APS will air vacuum excavate approximately (8) test-holes on existing underground utilities.
If a test-hole falls in the hard surface APS will jackhammer the existing asphalt or concrete.
APS will backfill all test-holes with a material approved by the local jurisdiction (5/8” select,
sand or pea gravel).
Collect utility and test-hole data, and photograph all found utilities.
Deliverables:
Test-hole data sheets, which include Top, Bottom, Width, Diameter and Direction of the
utility.
Excel spread sheet containing all test-hole data for the project.
Google Earth RM map with interactive link accompanied with an SHP File.
Photo of all found utilities.
One and a quarter inch zinc washer left at grade where utility was found with measurements
stamped into it.
Task Assumptions:
APS will complete utility locates for conductible utility locates only. Locating and marking non-
conductible utilities and GPR are not included in the scope of work.
Conductible utility locating refers to conductible (metallic) utilities. Non-conductible utility
locating refers to non-conductible (non-metal) utilities. GPR utility locating refers to ground
penetrating radar, used to find non-metallic utilities such as concrete, PVC, or polyethylene
water mains, USTs, and other anomalies.
The City will be responsible for locating and marking their facilities within the project limits.
Scope assumes that the utility will be between 0’ and 10’ in depth.
Page 9
Restoration is assumed currently to be a 2’x2’ hole with 5/8” crushed rock back fill with an EZ
street patch. APS will provide a 2-year warranty from the date the test-hole was performed.
CDF backfill and permanent asphalt repair are excluded from this scope. If the local
jurisdiction requires CDF backfill and/or permanent asphalt repair additional fees will be
required.
This estimate is based on design engineering rates in which case prevailing wages do not
apply.
Grind and overlay of the existing roadway is not covered in this scope. Should the local
jurisdiction require additional restoration, other than what is included in the scope, then
additional fees will be required.
TASK 603 – Infiltration Study Services (GeoEngineers)
GeoEngineers, Inc (GeoEngineers), as a subconsultant to Kimley-Horn, will complete a soils report and
infiltration study for the installation of new impermeable surfaces from the frontage improvements along
NE 24th Street within the vicinity of the Kennydale Lions Park. A subsurface investigation and infiltration
study to support the proposed improvements includes the following:
Review the readily available published geologic data and GeoEngineer’s relevant in-house
files for existing information on subsurface conditions in the project vicinity.
Visit the project site to mark the proposed testing location and to check for conflicts with
below grade utilities. If representatives from City of Renton are familiar with the location of
subsurface utilities in the area are available, City review of the proposed test location is
requested. GeoEngineers will not be liable for damage to underground utilities that are not
marked during the utility locating process. The process includes:
o Contact the “One-Call” Utility Notification Center, as required by Washington State
law.
o Subcontract a private utility locate service to scan for conductible underground
utilities in the vicinity of testing location, which may not be identified by the “One-Call”
services.
Advance one (1) test pit up to 10 feet below the existing ground surface using subcontracted
machinery and operator. GeoEngineers will continuously monitor the test pit exploration,
maintain a log of subsurface conditions and collect representative soil samples. The test pit
will be backfilled after the studies are completed.
Perform infiltration testing within the test pit to determine the in-situ infiltration rate using
methods consistent with a small-scale pilot infiltration test (PIT) as outlined in the 2022 City of
Renton Storm Water Design Manual.
Conduct geotechnical laboratory testing on selected soil samples. The budget includes two
(2) particle size distribution tests, one (1) cation exchange capacity test, and one (1) organic
content test.
Prepare a geotechnical memo presenting findings, conclusions and recommendations. The
memo will include a project site plan showing the approximate location of exploration,
summary exploration logs, and laboratory testing results. Specifically, the memo will include
the following:
o Discussion of soil and groundwater conditions encountered in explorations.
o Discussion of the suitability of site soils for stormwater infiltration, including estimates
of long-term design infiltration rates, based on PIT results and soil types encountered
in the explorations.
Page 10
Deliverables:
Geotechnical Memorandum
Assumptions:
The City of Renton will provide all relevant permitting and explorations will not require a traffic
control plan based on the location of the test pit.
A water source for the infiltration testing is not available on-site and a subcontracted water
truck will be used to provide water for the infiltration testing.
Explorations will be completed in two (2) days within Kennydale Lions Park and suitable
access to the testing location will be provided on scheduled testing dates.
TASK 700 – Management Reserve
A management reserve of approximately 10% of Kimley-Horn fees is included to allow for additional
services not included in this scope of work that may arise over the course of the project. The
management reserve task is not to be used unless authorized by the City in writing.
Scope Assumptions/Exclusions:
Project duration is 10 months.
The project will be bid in a single bid package.
City review of the Preliminary Design will take 2 weeks. City review of the 60% Design and
90% Design will take 3 weeks.
The City will develop and stamp the project specifications. Kimley-Horn will provide QC
review of the City prepared specifications at the 90% Design level.
Plans will conform to the City of Renton’s 2025 Survey and Drafting Standards. Kimley-
Horn’s standard AutoCAD styles will be used.
Right-of-entry on private property are not anticipated to be needed and not included as part of
the scope of service. Any right-of-entry needed as part of the project will be coordinated by
the City.
The City will lead all public communications.
Development of traffic control plans is not part of the scope of services. It is presumed that
work can be accomplished using WSDOT Standard K Plans, that the Contractor will be
responsible for developing and submitting to the City.
The City will lead and submit for all permit applications. Kimley-Horn will provide
supplementary information as requested to support City prepared permit application including
plans, quantities, and review of project descriptions/work. City will cover all permitting costs.
A retaining wall is not anticipated as part of the project. Any differences in grade can be
handled by light grading.
Storm structure design will be consistent with the City of Renton 2022 Surface Water Design
Manual. If updates to the City’s Surface Water Design Manual occur during the course of the
project, additional scope and fee may be required.
The City will provide plant selection and spacing along the frontage improvements area in
front of Kennydale Lions Park. No irrigation will be required.
Geotechnical engineering services are not part of the scope of services.
Page 11
The scope assumes a day of potholing will be completed. Potholes will include the potholing
of City and non-City owned utilities. The City does not require franchise utilities to pothole
their own facilities.
Kimley-Horn will send design plans to franchise utilities for input and feedback on potential
utility conflicts.
Hydraulic modeling, flow monitoring and confirmation of pipe sizing is not included in this
scope of services. Sizing is based on the City’s 2019 Water System Plan Update.
Coordination with local businesses, residents, and Metro for coordination of construction
access/impacts and temporary bus stop locations is not included in this scope of services and
will be led by the City’s public outreach team.
Tree health assessment, if required, will be completed by the City’s arborist. Arborist services
are excluded from this scope of services.
EXCLUSIONS/ASSUMPTIONS
Any other services, including but not limited to the following, are not included in this Agreement but
can be added through a contract modification.
Shoring design
Bypass design
Right-of-entry onto private property
Hydraulic modeling
Flow monitoring
Cathodic protection design
Record of Survey services
Structural engineering
Traffic Control Plans
Construction funding applications
Clean Air permitting
Construction stormwater permitting
Geotechnical engineering services, beyond those included under Task 603.
Environmental engineering/permitting
Irrigation design
Public outreach
Arborist services
DIRECT LABOR
Estimated Hourly Labor
Classification Hours Rate Costs
70 $300.00 21,000$
Sr. Professional 275 $275.00 75,625$
372 $240.00 89,280$
652 $210.00 136,920$
Admin Support I 12 $180.00 2,160$
Admin Support II 16 $140.00 2,240$
TOTAL KIMLEY-HORN LABOR 1,397 Total Labor 327,200$
MANAGEMENT RESERVE TASK 25,000$
TOTAL KIMLEY-HORN LABOR (INCLUDING MANAGEMENT RESERVE) 352,200$
DIRECT EXPENSES
TOTAL DIRECT EXPENSES 3,400$
OUTSIDE SERVICES (10% Markup)
Survey Services (DHA) 68,300$
Potholing and Utility Locate Services (APS) 30,300$
Infiltration Study Services (GeoEngineers) 23,400$
TOTAL OUTSIDE SERVICES 122,000$
Total Direct Labor 327,200$
Total Management Reserve 25,000$
Total Direct Expenses 3,400$
Total Outside Services 122,000$
TOTAL BASE COST (NOT TO EXCEED)477,600$
Additional Services Direct Labor N/A
Additional Services Outside Services N/A
TOTAL ADDITIONAL SERVICES COST (NTE)0$
TOTAL PROPOSAL (NTE)477,600$
Principal/Sr. PM
Professional
Analyst
Exhibit B - Cost Proposal Summary
(Costs Rounded to the Nearest $1.00)
City of Renton
February 13, 2026
NE 24th and 16th St Asbestos-Cement (AC) Water Main Replacement
Page 1
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EX
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B
I
T
B
MILEAGE
Location No. of Trips Miles Total Miles
City Meetings 0 90 0
Site Visits 3 85 255
Total Miles 255
Total Cost at $ 0.725 per mile 185$
REPRODUCTIONS
600
Type Amount Unit Cost 180
Plotting and sheet preparation 300 10.00$ 3,000$
Photocopy (8 1/2" x 11") 1500 0.11$ 165$
Photocopy (11" x 17") 0 0.35$0$
Displays (24" x 36") 0 80.00$0$
Mylars 0 24.00$0$
Total Reproductions 3,165$
TOTAL DIRECT EXPENSES 3,350$
TOTAL DIRECT EXPENSES (ROUNDED) 3,400$
(Costs Rounded to the Nearest $1.00)
Exhibit B - Direct Expenses
City of Renton
February 13, 2026
NE 24th and 16th St Asbestos-Cement (AC) Water Main Replacement
Page 3
EXHIBIT B
Page 13
BUDGET SUMMARY
Kimley-Horn will perform the services in Tasks 100 – 510 on a labor and fee plus expense basis with
the maximum labor fee shown below. Kimley-Horn reserves the right to reallocate amounts among
tasks as necessary. Kimley-Horn rates in Exhibit B apply to this contract and are adjusted on an annual
basis.
Kimley-Horn will not exceed the total maximum labor fee shown without authorization from the Client.
Labor fee will be billed on an hourly basis according to our then-current rates. As to these tasks,
direct reimbursable expenses such as express delivery services, fees, and other direct expenses will
be billed at 1.10 times cost. Administrative time related to the project may be billed hourly. All
permitting, application, and similar project fees will be paid directly by the Client. Should the Client
request Kimley-Horn to advance any such project fees on the Client’s behalf, an invoice for such fees,
with a ten percent (10%) markup, will be immediately issued to and paid by the Client.
TASK 100 – Project Management and Coordination $25,900
TASK 200 – Data Collection and Review $8,400
TASK 300 – Preliminary (30%) Design Services $51,600
TASK 310 – 60% Design Services $103,100
TASK 320 – Final Design Services $90,600
TASK 400 – Stormwater Report and Permitting Support Services $25,300
TASK 500 – Bidding Support Services $12,300
TASK 510 – Construction Phase Services $10,000
TASK 700 – Management Reserve $25,000
Kimley-Horn Labor Fee $352,200
TASK 601 – Survey Services (DHA) $68,300
TASK 602 – Potholing and Utility Locating Services (APS) $30,300
TASK 603 – Infiltration Study Services (GeoEngineers) $23,400
Outside Service Fee $122,000
Expenses $3,400
TOTAL: $ 477,600
EXHIBIT B
Page 12
SCHEDULE
Below is an approximate schedule for the services included in this contract.
Notice to Proceed mid-March 2026
Kickoff Meeting mid-March 2026
Data Collection mid-March – April 2026
Utility Locating Services (APS) mid-March – late-March 2026
Survey Services (DHA) April – early-May 2026
Infiltration Testing (GeoEngineers) April – May 2026
Preliminary Design April – mid-June 2026
City Preliminary Review (2-weeks) mid-June to late-June 2026
Plan-in-Hand Site Walk-Through with City late-June 2026
60% Design late-June – August 2026
City 60% Review (3-weeks) late-August – mid-September 2026
Design Potholing (APS) late-August – late-October 2026
90% Design mid-September – early-November 2026
City 90% Review (3-weeks) November 2026
Bid-Ready PS&E December 2026
Bid Advertisement January 2027
Bid Opening February 2027
Construction March 2027
EXHIBIT C
to December 2027