5(&200(1'(' )25 )8//7(;7 38%/,&$7,213XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU)LOH 1DPH DS	

			



1,7('7$7(6 2)0(5,&$5(772%<	
2(,1*2	
 !"#$
%&#'	# #()&(#&*#+#!#$	+#$%)&(#&*#!$& #&%*&%% #&,-.	#$+	&/	%&)&(#&*#0+'//+'10 %+ 2333)*&'' %'&'1	#"4333!15
66	 %'5&*+�+'/("2	 4&%	7))8	 	956 : 95 998 ; ($&%/#% ) ! %#  )+/ (  9## 

) 	)85  0
	
 
<
9 )
<
	
; ($&%/#% ) 0 "(  " 0 9535
	:5698&%*&%% #&$&!(  
  "2  	 4&%   	  +$7))8	 	956: 95998; ($&%/#% ) ) %&  
=%(% 7
65

6:79758899! %#)+/ ( 9## &*&  0 %#2 

) 	)85  0
	
 
<
9 )
<
	
; ($&%/#% ) 0 "(  " 0 '&*> 55/ % 0 95 5
	 : 56 98&%*&%% #&$&!(50'&?'#$&%&%!#$*+#&%@$&*$5
0A&%'66	0B33CD'&?'(  #'&((%#&%/&%&%79	5&*+�+'/$&( *#&%@ (4+/$#+%'#$( &"(*#BEFD-
	GG-3,---#*?' " /(!#$((! $&*##$ # )!%' %# %# &%/  BE&%/FD $ '" %+! *#+'?$ +'!"&&# 2+(&%/%@ &((#$H+(#&%(! @*#&!&'!&%#*+#2  42#$'&(#&*#*+# /+&%/#$ ##$'&(#&*#*+#'&%$'&%/BD#$ ##$&/$< +
#"( +(BE<
FD(#!#$&%I BEFDG33C3 %'&%* #'&%# #$ $&*# *%# *# 4#@% #$ 
%&#' 	# #(BE6?%"%#FD %'&%/'(%# # ( '!%(#' " /((+/$#+%'#$ %'B3D#$ ##$6?%"%#" 2 *? ' " /( ! #$ (( ! #$ $&*#  ;#$A+'/"%#!#$'&(#&*#*+#	
% ,I %' ,I, #$ 
%&#' 	# #( "2 BE"2FD@ '' "+#&2  *+"%# *%# *#( ## &%/&" #2J34&&%#&%/!#$" %+! *#+!"(# !+ $+%'' &%/" %+! *#+' KK3C&%*+'&%/+%'#$* +(#$*+#'(%#($'"+(#(*#!+2'&((%#-$ 3IOLJKW FULWLFDO SDUW ́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	 +'&  4& % '(# (  # ! #&%)(#	$&'&* !#I,C %'&#(*%#%#(@## 2'(#2' # ((! # (#J"&&%$"2  *' &* !# I,C @&#$  %@ )$&*##$ #*(# "(#J-"&&%%5 233,, ###42BE42FD!&'  *#&%+%' ( +(+ %##-
	G--B4D%4$ !!$&"(! %'#$6?%"%# /&%/#$ #&%/%'&#((+&	*BE	*FD$ '?& #'#$42" >&%/! ((# #"%#( 4+##$" %+! *#+ %'( !'!*#&? # %("&((&% / ( # #$ "2 ?&  &%/L(" %+! *#+')$&*#(	*" %+! *#+'#$/ (#$ #&%/&%(# '&%##$)$&*#(4!#$&'&?2##$"2%&-,,#$6?%"%# &%#?%' %' !&' % "%'' " &%#/ &%(#&%/@$&*$@ (+%( '%5 2,,% &#( %(@ &%/ '%&' #$ / #&%( ! ?& #&%( %' &(' ## !#@? !!&" #&?'!%((*&!&* 2&%/* &"'1BD#$ ##$<
&%*+''42/+ #&% &% #$ $&*# *%# *# 4 ' #$ ' " /((+/$#+%'#$ %' B3D#$ #*%(H+%#& ' " /(@%# ? & 4+%'#$%)*"43,,I#$6?%"%#!&' "#&%! #& (+"" 2A+'/"%#*$ %/&%/&%/L( ((#&%!#$ <
 ( % !!&" #&? '!%(  !# $ &%/  /+"%##$'&(#&*#*+#/ %#'#$"#&%-	+3'I,,3B	)$&,,,DBE
FD%4+ 2,,,&%/!&'*(("#&%! #& (+"" 2A+'/"%# (##$" (+!' " /(!#$ &%/  /+"%##$'&(#&*#*+#/ %#'&%/L("#&%&% #@&#$(*###$/% &((+!*%(H+%#& ' " /(4+#'%&'#$"#&% (&# #'##$6?%"%#L(' " /(&%#$&(* (,	+3'II,,CB	)$&,,,DBE

FD% +/+(# - 3 4! #&  #$  #&(  *$'(##"%#+%'@$&*$&%/" ' %&""'& # 2"%#!J3"&&%$(##"%#'&'%#&%*+'#$* &"&(&%/!"#$	 +'&* ($M % ''&#&%  2"%#!J"&&%&(*%#&%/%#+%#$+#*"!#$&(  $'&(#&*# *+# **#' #$ (##"%# %' *#&!&' !&%#*+#2  #$!@&%/H+(#&%(! @1 ;$#$ #$ N6?%"%#O * % *? ' " /(+%'#$ NO !((! $&*# (+#&%/!" #$ ! &+ !  '!*#&? !&/$#*&#&* *"%%# #M %'3 ;$#$#$N<
O*%# &%'&%NOG33C3 %' &%* #' &% #$ &%/ )$&*#*%# *# #( ( '!%(#' " /((+/$#+%'#$NO!#$((!' " /#$&*#(+#&%/!"#$! &+! '!*#&?*"%%# #0 #3B'#"%' %'#&!2D%	#"4I3@/ %#'&%/L(#&#&%!"&((&%#  ;$ ?%H+(#&%4!+(*%*%&%/@$#$ %'#@$ ##%#&%/L(*%'+*#@ ( ! +'+%# #$#$3"&#($&(#2&#&(* #$ ##$))L((!&%(+ %*&*2@ (&%#%''#*+'& 4&!#$((!*# &%6?%"%#H+&"%#P?%@$%(+*$((@ (#$(+#! %%" % /&  ! +' P ( #$ # *%# *#( @+' %#+*$ (& 4&&%(+ %*@$&*$#$@&(@+'4*(#2%'@+'4 *(# (('%##$6?%"%#$ &% %/+ /!#$<
 #&((+&%#$(%#* (*%!"(##$ #+(@?#$*+#L('*&(&%#' 2'(%#M+%'&#*%# *#(@&$ ?#&%(+ / &%(##%#& & 4&!#4' " /(!#$((!$&/$? +&#"((+#&%/!" *#&%(#$ #"&/$#4$'#4! +'+%#%#$  # ! %2 (%%  8(+" 42 #$&( *(# @& 4 (('%##$6?%"%#%(+"#$*+##' 2$'(#$ ##$<
'(%# 2&% (&#+ #&%@$&%&#( &%#"( %'$&(#&* +(("#(+//(#&#'( 2P *%# *#4&%/$'& 4# &"4+( #$ 6?%"%# ! #$ (( !  $&/$? +&#"@#$6?%"%# /+(#$ ##$&(* (&(%# 4+#*?&%/ #$ "+%# (# @$% #$ $&*# @ ('(#2'4+#&(&%(# ' 4+#$'&%/&%/(%(&4!! +'  @? &! #$ 6?%"%# @  2 %2*%*%' 4+# ! +' &# *+' (> #$ #$ % #&(((&4+%'#$'4 &%/!" #&*& #&%&%!+#+6?%"%#*%# *#(
%(# '#$6?%"%#(>(#4' 2"%#!#$$&*#(  &%' 4? &! #$&( *+# $ ' $' #$ <&* 4#6?%"%# *#&%(!&"4+("%#+%'#$&#@+'%#$ ?4%?&'&%/"#&%/#$  
# @+' &%(# ' "2 $ ? 4% +$'&%/ #$4?&+( *? /!  (# %' ' ((+"#&%! &(> * +(+%'@$&*$#$6?%"%# /'%##*&(*# &%&/$#(&#@+'#$@&($ ?&%*$ %/! 4%!&#$&(*+#@+'%#$ ?4%$'&%/#$ ##$* %%#4&'+%42#$6?%"%#M&#@+'"2$ ?4%( 2&%/#$ ##$6?%"%#&% **' %*@&#$#$(( %/+ / %'$&(#&* +(!#$<
* %%#(>*"%( #&%!#$((!#$$&*#+%' %2#$23(#$'&(#&*#*+#&%#$&(* (&%#'+# +%'#$&(#&" #$ 
%&#' 	# #( ""&((&% % 6?%"%#8*+"%#&((+'  # (# #&%/ (&"& 2#$ #'!%(*%# *#($ '%/EN+O%'(#'#$ ##$/%  *#&*!#$/?%"%#&%"&&# 2*%# *#&%/@ (# **##$&(>!((' " /F!-	+3' #,,	#&#$"#* (($>#$! &#$!6?%"%#*%# *#(&%#$#*#&%!!'42#$+%@&##%&*2
%(%(&%,#$))&((+'# #$%@$&*$ (#$*+#%#(+#&%@&#&%/#$&(&"&#'& 4& A #%3$ &/&%  , ?(&% ! #$ ))L( (!&%(+ %*&*2(# #'#$ ##$* +('&'%# 2E@$%#$'!*#('!&*&%*&(&%(+*$(+&( (+#' !" ! +'/(( %/&/%* ( "+%#( # ! +' % #$  # !&#F)8IC #B"$ (&( '''D@? (#$*+#%#('!%(&%'+(#2(%# #&?(@ %'#$ ##$&(@+''! ##$+(!#$* +( %'@$%#$* +(@ (&((+'&%,#$$ ($ '4%"?'5 A #,%
#@ ( *'@&#$ "&"&#'*#&%@$&*$P"+*$&>#$%&%#$*+%#<
P*+''%2E@&!+"&(*%'+*# *>!/'! &#$ % #$  # ! %2 ! #$ %# *#L( '&*#( !!&*(" % /((+&%#%'%#(#$H+&? %#(%# #&?(F	8B0+2,D"# %#2#$6?%"%#" '#$&(*$ %/((2*/%&=&%/&#(!!*#
% "" %'+"'&(*+((&%/('?&(&%( # #$ <
 #$ "' 	?&*( 8*+"%#/+ #&%( ""&## @$&*$ "+/ #' #$ <
 &%'#$ ##$ "?  !#$ &/&%  ! +' ?&(&%@+'E&"&% #*%# *#L(N(&*O(%(&4&!' " /#6?%"%#8#2(+#&%/!"'!*#&?&#"( %'* +('42#$! +'/((%/&/%* ( "+%#(#! +'! %2(%%!#$*%# *#F0 #C3B0 %+ 2,3D 
%,I#$<
 /+ #&% ? %###$&(* (4* " !!*#&? %' ?&'( (+4(# %#& 2 #$ ( "#*#&%#"&&# 2*%# *#(?&'&%/$&/$? +&#"(IG33C3H+(#&%&(@$#$#$<
*+'(& 4&+%'#$ ((+"&%/#$ #& 4&@+'#$@&(&(#		% %&%#*+#2  @?&@ '&(#&*#*+#L(/ *%*+(&%( ' %? '&( )& 
 *
 !# +#&,-
!#3-'I3-BC#$&3D; !&(# *%(&' (+  (%# #$ A+&('&*#&%  H+(#&%@$#$#$ #&(L(##"%#!+/+(#-3%'(#$&(* ("#
%'#&*


!#$%(#&#+#&%+*&(!A+'&*& @&(&"&#'#E *#+ * ((*%#?(&(F&
!#ICC3'IIIIBC#$& ,I,D BH+#&%/  +& CI 
	 - B,IDDB&%#% H+# #&%" >("&##'DE	##"%#!* &"4! !&%  'A+'&* #&%"#(#$* &" %''&?(#$ !'  A+'&*& 2 ! A+&('&*#&% ? #$ * &"F !/"%#(#&"&#*? 4' " /($@?'%#"#* (( %'#$!'%# !!*#+A+&('&*#&%!$ #&(L(##"%#&%#$&(* (&(((%#& 2#$( "(#$ /"%##&H+&' #' " /(#$ #@ (  *$'&%'-.
	-B,I3D@$ '&(*$ /'& !* "2 (+/$# *&?& ' " /( !" #$ !"(&'%#! #--
%'#$#"(!#$ /"%##$"2 **#'J3@&#$ % ''&#&%  "+%#!J3I*%#&%/%#+%#$	+"+#L(+&%/#$ ##$!"(&'%#@ (%#%#&#'# 4(+#&""+%!#4(?&%/#$ #EN#O$&"&#' /"%#4#@%#$ #&(!#4#$#&#&% %'(%'%#@&#$ *%(&' 4!&% %*& (# >&%#$(+#&%!#$H+(#&%(%#'&%#$&( +#F #$ +# *%*+'' E6&?% (%'%#(L*%#&%+' *#&?+(+&#!"%# 2&!#$&(* (" &%('!&%&# %'*%*##+*$&%/#$/  #&%(! #&($ ?&%/ '?(/ &%#(#(F!BH+# #&%"&##'D%#$&(* (&%/$ (  '2 &'#$6?%"%#J3"&&%M&# $ ( /'#  2 % ''&#&%  "+%# ! JC"&&%*%#&%/%#+%++&%/(@&#$(*###$(*!#$ %'#$<
$!4* +(#$ #&($ ?E *%(&' 4!&% %*& (# >F#$* (&(%#"#%'@@&*'##$"&#(!#$&(  

	 !$$&(#2!#$' #(4 *>#IC-@$%&#@ (% *#' E@&#$ #$ &%*&  /  ! (#&%/ #$ " ((&?! +'(# #'42 / N&? #O*%# *#('+&%/#$&?&; F/
#'3,
	CIB3DBH+# #&%"&##'D$$ ((&%*4*"#$&" 2" %(42@$&*$#$6?%"%#*"4 #( %''#(! +' (3 2,,CC #IB,ICD( "%''&%,IC#$?&'(!*&?&% #2!"J#J %'#4' " /(@$% % &%'&?&'+  >%@&%/2 *#( # '! +' #$6?%"%# %' '( %# E!+2 * #NO @&#$ %26?%"%# &%?(#&/ #&% ! (+*$ ?& #&%F  - 
	G -3,B D  $ 	+" +# +%'(# %'( #$ *+%#?(&% !  ' " /( # 4 E((%#& 2 +%&#&? &%% #+F/
#3, 
	 #I B &%&%/#$ ##$+#$ 'E(+//(#'#$ #' " /(+%' % &?(&%!#$@ "'&   #$#$ %+%&#&? N4* +(O#$ #?(&%!#$ (# #+#&"('%2'+4' " /( %'*&?&% #2!J3* &"FB*&# #&%("&##'DD;$ (#$ @(#$6?%"%##*+(((!"! +'#$<
$(#" % /#$*(#(!& 4&&%(+ %*	&%*,I#$' *H+&(&#&%/+ #&%(BEFD$ ?(*&4'#$&%(#&%!#$<
&%*# &%/?%"%#*%# *#(#&"&##$& 4&!*%# *#(E!((!' " /##2!#$6?%"%#B&%*+'&%/#$ (+&('&?'+%'#$NO*%# *#D#$ # BD**+(!#6?%"%# **# %*!#$(+&('&?'+%'#$NO*%# *# %'B3D(+#(!" %2'!*#('!&*&%*&(3-'(*&4! +'$!#$<
((2"#(!"#*#&% ((( '+ # ! +' % #$  # ! " % /& (%%$%/ #&?/% %##$!@+'4#$ ##$<
'(#*#*%# *#(!"((('+#%%" % /& ! +'B@$&*$#$ #&($ ?(#&+ #'#4#$#%#!#$! +'&! %2&%#$(%#* (D*%'#$+(!#$* +((+#(#$(&#&%#$ #&#@ (&%#%''#?&'#*#&%%" ###$/ #$2
%'# &%@$2$@?
?&' (&/$#24 '$&(#2!#$<
( #$ '&(#&*# *+# &% #$&( * (  &%' #$ * +((%#(  %/(# %'&%/ ) #"%# ! )!%( B))D *#&*!(!&%(+&%/!' " /#$&/$? +&#"( ! -  	+ 3' # ,I,  # !&(# &# @ ( A+(# *#&*+%'@$&*$#$))@+'%#$'" %+! *#+(& 4 !#$((!#$&(#2! H+&"%# / '((!@$#$#$))!+%' %2! +#%/&/%*4 *$!@  %#2#$ ?**+'%#$ #!#$" %+! *#+!#,,$%&%#$,C(#$ %'&%// % % & %+*$ (' 42 #$ 
%&#' 	# #( "&&# 2 %' (' # #$+(# & %  ?2 ! &' (+#&%/ &% #$ '(#+*#&% ! #$ %$+(# & %/?%"%# (+'#$" %+! *#+(>&%/##*%# *# %''+*#(& 4&' " /(!!&%/##$%/(# %'&%/ *#&*!#$6?%"%#(!&%(+&%/ / &%(# #$ (( ! "&&# 2 H+&"%#&!%& '&(#&*#*+# !+%'#$ ##$
%&#'	# #( ?2*+'$ ?4%(#'!"+(+&%/ %2* &"4 ('%#$ (( ! #$ &* !# 4* +( #$ & % &%'+(#2 @ (@  ! %' &' +% #$&(  *#&*  
 0#1&
#,"#"C,C3-;86B) 0 %,3D	*&!&* 2#$*+#!+%'#$ ##$(!&%(+ %* *#&*$ '#@*%# +((1BD#%*+ /" %+! *#+(%##4# &%& 4&&%(+ %*#$*(#!@$&*$@+'4 (('%##$6?%"%#M %'B3D # %*+ / #$ " %+! *#+( # * # !+2 &%&%?(#&/ #&%/#$* +(!H+&"%#! &+(! #3-33&RQWUDU\ WR WKH FRXUW¶V FRQWHQWLRQ WKH DUJXPHQW WKDW WKH*RYHUQPHQW FDQ FRQWUDFW DZD\ SDUW RI LWV ULJKWV XQGHU WKH )&$ LVVXSSRUWHG E\ WKH UHFHQW )RXUWK &LUFXLW GHFLVLRQ LQ8QLWHG 6WDWHV Y%DQNHUV ,QVXUDQFH &R )G  WK&LU ,Q WKDW FDVH WKH*RYHUQPHQW ZDV KHOG WR DQ DUELWUDWLRQ DJUHHPHQW FRQWDLQHG LQ D FRQWUDFWLW KDG VLJQHG ZKHQ WKH *RYHUQPHQW VRXJKW LQVWHDG WR EULQJ DQ )&$ DFWLRQLQ FRXUW DJDLQVW WKH RWKHU SDUW\ WR WKH FRQWUDFW 7KHFRXUWWULHV WRGLVWLQJXLVK%DQNHUV ,QVXUDQFHE\ QRWLQJ WKDW WKH FRQWUDFW DW LVVXH LQ WKDWFDVH SHUPLWWHG WKH *RYHUQPHQW WKH XQIHWWHUHG ULJKW WR VXH XQGHU WKH )&$DIWHU LW HQJDJHG LQ WKHUHTXLUHGDUELWUDWLRQ 0DMRULW\ 2S DW 1HYHUWKHOHVV WKH UHDVRQLQJ RI%DQNHUV ,QVXUDQFHVWLOO DSSOLHV WR WKH FDVHDW KDQG 3>7@KH *RYHUQPHQW KDV QR VSHFLDO ULJKW WR LJQRUH LWVFRQWUDFWUHVSRQVLELOLWLHV 7KH *RYHUQPHQW VKRXOG FRPSO\ ZLWK LWV FRQWUDFWREOLJDWLRQV DQG LW FDQQRW DYRLG WKHP PHUHO\ E\ LQYRNLQJ D VWDWXWRU\ FLYLOFODLP VXFK DV RQH FRQWHPSODWHG XQGHU WKH )&$ ́%DQNHUV ,QVXUDQFH )G DW 6?%"%# !(#$ #&#$ (4%'! +''&#" 2'4 &%/ !" 6?%"%# *%# *#(  
% ($# #$ 4## '&%/!#$<
&( ( % ((+"#&%!&(>* +(M#$6?%"%#$ (*%# *#+ 2 /'# ((+"#$&(>!#$((!#$$&*# %'@$&/ " %(" &%%##$6?%"%# / &%(#&%/B&%*+'&%/#$ #+(+ %###$D#$6?%"%#* %%#(>*"%(!#$? +!#$H+&"%#$&((+#&%4#$#$@'&%/ %'+(!#$<
!%!*&%/ % #+  '&%/!#$*%# *#+ * +(P#$ ##$6?%"%#$ (*%# *#' @ 2&#(&/$##(>#2' " /(!"(+&(!$&/$? +&#"(&(##$@'&%/!#$<
(+#(#$(&#&%#$ #&#@ (&%#%''&%#$+(+ * (##*#*%# *#(!"6?%"%# *#&%(+#&&=&%/ ! +'#$28+(+ %##&#*%# *#( %#& 4! %2' " /(!#$((!$&/$? +&#"* +('42 '+*#'!*#+%((%!#$!@&(#'*#&%( &((#$*+#&%#(+#%!#$(*#&%(&(!E@&!+"&(*%'+*# *>!/'! &#$F%#$ #!" % /& (%%5 A #,B*&#&%/ G33C3B4DD$+/$%#+(&%/#$ @'E! +'F@&!+"&(*%'+*# %'  *>!/' ! &#$ ! &2)URP  WR  ZKHQ WKH )$5 EHFDPH HIIHFWLYH $UPHG6HUYLFHV 3URFXUHPHQW 5HJXODWLRQ3$635 ́  UHOLHYHG FRQWUDFWRUVRI VXFK OLDELOLW\6HH-$ DW  'HIHQVH 3URFXUHPHQW &LUFXODU 3'3&  ́ DW  &%#$(+&(FG33C3B D$<
*?(#$((!' " /# $&/$? +&#"'!&%' (E *%# *#%'&#"#$ # B D$ ( $&/$+%&#*(# B%" 2*'&%/J+%&#D %'B4D&('(&/% #'42#$*%# *#&%/!!&* ( $&/$? +&#"F!GCI3/ '&%/(+*$$&/$? +&#"(#$6?%"%#L((# #'&*2&(#E *# ( (!&%(+F %' # E&? *%# *#( ! *%# *#+ & 4&!((!' " /##$(&#"(F!GCI-%($##$<
(%#(#$6?%"%#L( ((+"#&%!#$&(>#$ # $&/$? +&#"(+*$ (&* !#I,C" 24(#' " /' !# **# %* ( (+#! '!*#'!&*&%*2&%#$&#"
#'(%#%*(( &2&"2#$ ##$6?%"%#$ ((!&%(+'!#$' " /(#$ #(+#!"?& #&%(!!'  @&%/ &#(! **#( #$ ! *# #$ # EN O((+"&%/ #$/?%"%# *+'?  ! ( * &"  *%# *# @+'" &% & 4 ! % #&( %' &! #$ 4 %2 #$& #  ' " /( %#@&#$(# %'&%/ #$ <
F %#L(  # -  @? 2&%/ % #$ ## %'$&(#2!#$<
&%/ /+(#$ ##$<
$&4&#(#$*?2!' " /(+%' %2 %' * +((! *#&%@$%#$(' " /((+#!"#$! +'!%%" % /& (%%" %&%/#$ ##$@+'4% & #' " /(&%#$&( * (  $&((+ 4! +(&( @$#$#$<
L( &"&# #&% ! *%# *# & 4& #%'( # * ((4+/$# +%' #$   	*&!&* 2 @ "+(# '*&'@$#$#$6?%"%#$ ( /'#&"&#' " /(#$ #@+'#$@&(4*? 4+%'#$%$'&%/#$ ##$<
?&'(%'!%(#* &"(!?& #&%(#$'&(#&*# *+# !&(#%#'#$ ##$ &"&##$ &* #&%!#$<
E#*%# *#+  "'&(%'%## * &"("&('+%'#$ NOFM&%''#$<
 %' #$   (&%# @&#$ (*# #  *$ #$I:HQRWH WKDW %RHLQJ 3YLJRURXVO\ GHQLHV ́ DQ\ NQRZLQJ VXEPLVVLRQRI D IDOVH FODLP LQ WKLV FDVH 5HSO\ %U DW  +RZHYHU ZH PXVW DVVXPHVXFK D VXEPLVVLRQ WR DGGUHVV ZKHWKHU WKH +9,& SUHFOXGHV )&$ GDPDJHVZKHQ LQFRUSRUDWHG DV D FRQWUDFW SURYLVLRQ
-	+3' #,$!#$'&(#&*#*+#'*&%'#!&%'#$"&%*%(&(#%#!* +(* &"(&(!"#$(+4"&((&%! ! (! +'+%#* &"#$'&(#&*# *+# *%*+'' #$ # #$ <
L( &"&# #&% %*%# *#+ & 4&'&'%#&"&# *%# *#L(& 4&+%'#$!&%'&%/%?&'%*&%#$*'! %2(+*$&%#%#%#$6?%"%#L( #! #,&% 2#$'&(#&*#*+#'&(#&%/+&($',I3'CBI#$&,3D#-
	,B,-D@$&*$$'#$ # & 4&&"&#&%/*%# *#?&(&%'&'&"&##$6?%"%#L(* &"( #C%#$/+%'#$ ##$*%# *#@ (" '&%#$"/%*2(&#+ #&%*'&%/;'; 

" >&%/#$* (+%&H+
-	+3' #,3; /@&#$#$'&(#&*#*+##$ ##$<
'(%#4 #$6?%"%#!"(+&%/&%/+%'#$#*?' " /(!&* !#I,C;>!&(###$ %/+ /!#$@$&*$$'( '!%' %#& 4! *&?&% #2E+(-#&"(#$ "+%#!' " /(@$&*$#$6?%"%#(+(# &%( 4* +( ! #$ *# ! #$ # (%F  - 
	G -3,B D  $ /'2 ! +'+%# *# &% #$&( * ( &(&%/L( E! (NO (%#N #&%O #$ # #$ $&*#(*%!"'#*%# *#H+&"%#( %'! &N+O#'&(*(#$&! +#2" %+! *#+##$
%&#'	# #(6?%"%#F0 #IB"" #Q-D* +(!#$&(! (* &"#$ 6?%"%# (+(# &%' #$ (( ! &* !# I,C$!#$6?%"%# /+(#$ #&%/&(& 4+%'#$!#4' " /( (@ ( *&?&% #2##$&(&%#&%/@+''&*#+(##$<
@$&*$&"&#(*%# *#& 4&!$&/$? +&#"(&%! &24 '#"(13, QRWH WKDW WKH FRXUW PHQWLRQV LQ SDVVLQJ WKH GLVWULFW FRXUW¶V UHDGLQJRI WKH +9,& ZKLFK ZRXOG DOOHYLDWH DQ\ SHUFHLYHG WHQVLRQ EHWZHHQ WKH+9,& DQG WKH )&$ E\ OLPLWLQJ WKH +9,&¶V HIIHFW WRRQO\FRQWUDFWXDOUHPHGLHV LQ WKLV UHDGLQJ WKH +9,& ZRXOG EH FRPSOHWHO\ LQDSSOLFDEOH WRWKH *RYHUQPHQW¶VVWDWXWRU\UHPHG\ XQGHU WKH )&$ 0DMRULW\ 2S DW FLWLQJ5RE\ ,  ) 6XSS G DW  7R WKH H[WHQW WKDW WKH FRXUW UHOLHVRQ WKLV GLVWLQFWLRQ LW DSSHDUV LQFRUUHFW )LUVW ZKLOH WKH ZRUGFRQWUDFWXDOLV XVHG WR PRGLI\ WKH UHPHGLHV OLPLWHG E\ WKH+9,& LQ LWV HQDEOLQJUHJXODWLRQ WKDW PRGLILHU GRHV QRW DSSHDU LQ WKH IRUP FRQWUDFW ODQJXDJH VHWRXW LQ WKH UHJXODWLRQV  &)5   RU LQ WKH SDUWLHV¶ FRQWUDFWZKLFK LQFRUSRUDWHG WKH IRUP ODQJXDJH 7KHUHIRUH WKH FODXVH DV LWDSSHDUV LQ WKH SDUWLHV¶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	 0HQDVFR 0IJ &R 1R :3*&' &DO -DQ   WKH SUDFWLFH ZDV GLVFXVVHG DV D GHIHQVH WRFRQWUDFW SURGXFWV OLDELOLW\ DQGQHJOLJHQFH FODLPV 2EYLRXVO\ QHLWKHUQHJOLJHQFH QRU SURGXFWV OLDELOLW\ FODLPV DUH FRQWUDFW UHPHGLHV LQ WKHQDUURZ VHQVH WKH\ GR QRW DULVH IURP D FRQWUDFW MXVW DV D IUDXG FODLP GRHVQRW +RZHYHU WKH\ FDQ DOO DULVH RXW RI D UHODWLRQVKLS EHWZHHQ WKH SDUWLHVWKDW LV EDVHG LQ D FRQWUDFW&(/&?% % #+  '&%/&#@&*%!&*#@&#$#$/ (!#$5 A #-@? #$ *+# +%%*(( &2 *"&* #( #$ * (%# 2##$*+#L( '&%/#$ %'<
* % (&24  ' &% $ "%2  $ <
 '( %# ?@&# "# #$  42 &?&%/ *%# *#( ! & 4& !! +'$&((#& &* 4##$*%# *#(M#$%2'&!!%* " ' 42#$ <
&(#$ ##$ 6?%"%# $ (/'#$ #&#@&%#$'#$*%# *#(& 4+%' %2#$2 ! #$ ? + ! #$ $&*#  **'&%/2 #$6?%"%#* %(+#$*%# *#(+%'#$ %'(>!&%'&%/!& 4&!! +'M#$6?%"%#"2* %%#(> ' " /( ! #$ ? + ! #$ H+&"%#  $ #$% #&( +%' #$   (#& &* 4 %' &! #$366	&*+�+'/'&((%#&%/
(*#!+2'&((%#!" #$ *+#L( (#&*#&?  '&%/ ! #$ <
 %' &#((+# %#$'&%/#$ ##$6?%"%#* %(+&%/+%'#$#*?' " /(!&* !#I,C(#$*+# '"&#(#$<
E&"&#(*%# *#& 4&!$&/$? +&#"(&% F5 A #IB"$ (&( '''D$ &% %/+ /!#$<
(# #(#$ # @&#$&"&#' *#&%(#$ ##$ #&( / %#&* 4##$(%#* (E#$%# *#($ %#4& 4!((!' " /##2!#$6?%"%##$ #BD**+( !#6?%"%# **# %*!#$(+&('&?'+%'#$&(*%# *# %'B3D(+#(!" %2'!*#('!&*&%*&(&%#$(+&(FIG33C38+#"(#(&"2#$&(* (&( 4+##$6?%"%##2&%/#' *#2@$ ##$ &% %'4?&+(@'&%/!&#(*%# *#+ #"( 2(&#@&%#'1*?!"E#$%# *#F!#$E((!' " /##2!#$6?%"%#F$*+#L($'&%/P#$ ##$6?%"%#* %(>+%'#$ *#2@$ #&#$ (*%# *#'#$+/$#$<
%##P!@(&% / #!"#$&%$%##%(&%#$*+#((4#@%#$ %'#$<
$*+#(# #(@#$$&(#2 %'+(! *$P#$@ ( '#'#*"4 # ! +' # #' % #$ 6?%"%# 42 &#(*%# *#( %' #$ <
 &( &%*+'' (  (!&%(+ %*?&(&%&% *# &% 6?%"%# *+"%# *%# *#(#&"&# #$ &%(+ %* #$ # *%# *#( "+(# *H+& B %' #$(+# %#*(#(#$(*%# *#( ((%##$6?%"%#D5 A #C$*+##$% &%(#$ #&!#$<,7KLV H[FHSWLRQ RULJLQDOO\ LQFOXGHG 3IUDXG RU JURVV QHJOLJHQFH DVDPRXQWV WR IUDXG>@ RQ WKH SDUW RI DQ\ SHUVRQQHO RI WKH &RQWUDFWRU ́ -$DW $635 ELL  7KH GHIHQVH LQGXVWU\ REMHFWHG WRWKLV SURYLVLRQ RQ WKH IROORZLQJ JURXQGV7RGD\¶V H[SRVXUH WR SRVVLEOH LQILOWUDWLRQ E\ DQ\ QXPEHU RIGLVVLGHQW IDFWLRQV LQ RXU VRFLHW\ VHUYHV WR KLJKOLJKW WKHLPSRVVLELOLW\ RI DQ\ PDQDJHPHQW WR UHDVRQDEO\ DFFHSW DV DQXQLQVXUHG ULVN WKH UHVXOWV RI DQ\ LQGLYLGXDO¶V DFWLRQV UHJDUGOHVVRI WKH H[WUHPH QDWXUH RI VXFK DFWV7KHUHIRUH WKH LQWURGXFWLRQ RI WKLV H[FHSWLRQ JRHV D ORQJZD\ WRZDUG QHJDWLQJ WKH PDLQ SXUSRVH RI '3& WKDW LV WRUHPRYH IURP WKH &RQWUDFWRU WKH ULVN RI SRWHQWLDO OLDELOLW\ IRUGDPDJH WR *RYHUQPHQWSURSHUW\ DQGHOLPLQDWH IURP *RYHUQPHQWSURFXUHPHQW WKH FRVW RI &RQWUDFWRUV¶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
'(%#!%*#$4+#&#'(((2 !+(#&"&# *%# *#L(& 4&@$%E#$6?%"%#L( **# %*!N $&/$? +&#"O(+#(!"@&!+"&(*%'+*# *>!/'! &#$%#$ #! %2!#$%# *#L(" % /& (%%FG 33C3B4D  $  #&( $ ? (#&+ #' #$ # #$&(*#&%&(%# #&((+&%#$&(* ($! **'&%/#&%/#$<
L(&"&# #&%!& 4&!((' " /,Q RWKHU ZRUGV WKH ORVV ZRXOG QRW KDYH RFFXUUHG DV LW GLG LI %RHLQJKDG QRW ZDUUDQWHG FRQIRUPDQFH EHFDXVH WKH *RYHUQPHQW ZRXOG KDYHUHTXLUHG WKH FRUUHFWLRQUHSDLU RU UHSODFHPHQW RI WKH JHDU ZKLFK ZDVXQGHUZDUUDQW\ 7KH +9,& LWVHOI HPSKDVL]HV WKLV REOLJDWLRQ )$5 G&( 4(+#*+'&%/#$6?%"%#!"*?&%/ %2' " /(B (('# *&?&% #2D+%'#$;* %%#'&((!#$* &"( (&2#$+/$#$ (( ! &* !# I,C **+' !# 6?%"%#**# %* %'(+#'!"#$'!*#&?	*/ &#@ (*#+ 2* +('42&%/L(&%&#& "&((%# #&%#$ ##$$&*# *%!"' # *%# *# H+&"%#(  $&("&((%# #&%@$&*$#&//'& 4&&(#$>2##$&(* (&%/ /+(!"#$E@&!+"&(*%'+*# *>! /' ! &#$F  %/+ / &% #$ " % /&  (%%?&(&%  G 33C3B4D #$ # ' " /( ! ?& #&%( "+(# 4 *?' 42 #$ /%  &"&# #&% !& 4&  ; ' %# /  ; #$ <
  #2&* &%(+ %*&*2@@+'*%(&'(?&%/#$ "4&/+&%&%/L(! ?'&1#!3-',I-,ICIBC#$&,,DB(# #&%/#$ #5&*$&/ % @ H+&( *+#( # *%(#+ "4&/++( ?&(&%( %'*+(&% 2* +((&%&%(+ %*&*&( / &%(##$&%(+D$ &"!#$<
$@?&(#E'+*NO6?%"%#*+"%#*(#(42&"&#&%/#$*%# *#L(&(>F0 #- B)8 IC # D  $ <
 &%(+( *%# *#( %2&%'&*#2M &# &( 42 &#( @% #"(  (!&%(+ %* &*2@$&*$" %(#$ ##$6?%"%#&(4#$&%(+ %'&%(+'* +(%#$&%/&%#$<
(+//(#(#$ #&#(&"&# #&%!*%# *#& 4&*?((# #+#2?& #&%(@$'#$ ##$'&(#&*#*+#'&'%#&%*%*+'&%/#$ ##$<
'(%#?&' '!%(#' " /((+/$#+%'#$%%?#$'&(+#&%#$&(* (&(((%#& 2#$( "( #$ % &%    @$ #$'!%' %# #' 6?%"%#@%' ""+%&#&% %#'+&%/;'; 

,I3'# I  $ 6?%"%# /' #$ # #$ '!%' %# $ ',
#$!/&%/ (%(@#$A+'/"%#!#$'&(#&*#*+#I7KH )HGHUDO &LUFXLW KDV REVHUYHG WKDW WKH GLPLQLVKHGYDOXH WHVW LV3WKH QRUPDO PHDVXUH RI GDPDJHV ́ LQ )&$ FDVHV EXW KHOG WKDW3>L@Q WKHXQXVXDO FDVH LQZKLFK DFWXDO ORVV LQ YDOXH FDQQRW EH DVFHUWDLQHG WKHLQMXUHG SDUW\ PD\ UHFRYHU WKH UHSODFHPHQW FRVW EXW RQO\ LI WKDW FRVW LV QRWFOHDUO\ GLVSURSRUWLRQDWH WR WKH SUREDEOH ORVV LQ YDOXH FDXVHG E\ WKH GHIHFWVLQ TXHVWLRQ ́&RPPHUFLDO &RQWUDFWRUV ,QF Y 8QLWHG 6WDWHV  )G)HG &LU  37KH FRVW RI UHPHG\LQJ GHIHFWV LV QRWUHJDUGHG DV GLVSURSRUWLRQDWH LI WKH GHIHFWV VLJQLILFDQWO\ DIIHFW WKH LQWHJULW\RI D VWUXFWXUH EHLQJ EXLOW ,Q WKDW VHWWLQJ WKH LQMXUHG SDUW\ LVHQWLWOHG WRUHFRYHU WKH FRVW RI UHPHG\LQJ WKH GHIHFWV GHVSLWH WKH IDFW WKDW WKH FRVW PD\EH YHU\ KLJK ́,GDW 6R LQVWUXFWHG ZH REVHUYH WKDW LI WKH DFWXDO ORVV LQ $LUFUDIW ¶VYDOXH FRXOG QRW EH DVFHUWDLQHG WKHQ WKH *RYHUQPHQW ZRXOG EH HQWLWOHGXQGHU&RPPHUFLDO &RQWUDFWRUVWR UHFRYHU WKH YHU\ KLJK FRVW RI UHSODFLQJWKH GRZQHG KHOLFRSWHU EHFDXVH WKH GHIHFW FRQFHUQHG D IOLJKW FULWLFDO JHDUDQG VLJQLILFDQWO\ DIIHFWHG WKH VWUXFWXUDO LQWHJULW\ RI WKH KHOLFRSWHU!' " /(!%%'&?2+'& #&%42#$(&(#$'&!!%* 4#@% #$ " ># &* # #$ #&" @$% #$4+2 %'!#$4 *$ %'#$*%# *#&*FD
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
%&#( %(@#$'!%' %#'%&' %2@%/'&%/ %'/+' #$ # &#( & 4& @ ( &"&#' 42 *%# *#+  #"((&"& ##$<
! #,C!# 4%*$#& #$'&(#&*#*+#'&("&(('#$* (%#&%/#$ ##$&"&# #&%!& 4&@ ((# #'&%E4 '#"(F %''&'%#?& #+4&*&*2 ! # CC-  $ &/$#$ &*+&# !!&"' #$'&("&(( ! #C#(+&(&%/2#$ #&('&( / (#@$#$ %'$@#$'*&(&%($+' !!*#+'&((&#&% ! #$&( * (  ; #$&%> #$ # #$ '&(#&*# *+#**#2'&(#&%/+&($'#$#@* ((
-	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

%($#@'%# '#$<
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
%(+ ''42#$( /+"%#(#$+#$&*+&#+#&" #2H+&'#$6?%"%##(+4"&##%%4&%'&%/ 4&# #&%4!&#&/ #&%/#$* &"!#-33**'&%/#&%/#$$'&%/&%1!##$ ##$ 6?%"%# "+(# ( #&(!2 &#( *%# *#+  4&/ #&%((+#(#$(&#&%&%#$&(* (#$ ##$6?%"%#" 2*"2 @&#$ #$ <
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
% @$'#$ ##$ 6?%"%# *+' *? #$ *%# *# &* 4* +(' " /(@#$( "@$#$@ &'#$'&"&%&($'? + #(# ( #$ '!%' %# +/'  #$ 
%&!"""*&  'L( A*#&% ?&(&% ! # -@?*%# 2#&%/L( '&%/!#$* ( '(%#%*(( &2(&/%&!2#$ ##$*?2!' " /(&%* ((&(E&"&#'##$*%# *#&*&/&% 2 &'F2 #3C#$+/$#$6?%"%#  %#2'&'%#* &" #$ # &#( !+  *#+  ' " /( @ " #$ % #$*%# *#&*&% &#'((&%#$&(* (&%/*$  *#&=(#$6?%"%#L(* &" (% ! *"%#*(#(@$&*$&# /+( *%(H+%#& ' " /(%'#$+(+%*? 4+%'#$;#$&%>#$ ##$&(*$  *#&= #&%*%!+((#$&((+
%'#$'&"&%&($'? +#(##$ #&%/&#(!! ?( *#+ ' " /('%'%E" >#? +F3-
	 #-%-&%/*%! #(" >#? + %'*%# *#&*4+##$*%*#( * 2'&(#&%*#
G3-B3DBENO$" (+CVXSSOLHG WKHVH WXEHV VHQW WXEHV WKDW ZHUH IDOVHO\PDUNHG DVPHHWLQJ WKH*RYHUQPHQW¶V VSHFLILFDWLRQV,G7KH FRQWUDFWRU WKHQ LQFRUSRUDWHG WKHIDOVHO\ PDUNHG WXEHV LQWR WKH UDGLR NLWV DQGVKLSSHG WKHP WR WKH*RYHUQPHQW,G7KH FRQWUDFWRU¶V LQYRLFHV ZHUH WKXV IDOVH EHFDXVH WKH\3LQFOXGHG FODLPV IRU SD\PHQW IRU WKH IDOVHO\ PDUNHG WXEHV WKDW KDG EHHQVXSSOLHG ́ E\ WKH VXEFRQWUDFWRU,G$IWHU UHFRYHULQJ GDPDJHV IRU WKHWXEHV IURP WKH FRQWUDFWRU SUHVXPDEO\ E\ VHWWOHPHQW WKH *RYHUQPHQWEURXJKW DQ )&$ DFWLRQ DJDLQVW WKH VXEFRQWUDFWRU,GDW  ,QKROGLQJ 3WKDW WKH *RYHUQPHQW¶V GDPDJHV VKRXOG EH GRXEOHG >DV WKH )&$WKHQ SURYLGHG@ EHIRUH DQ\ FRPSHQVDWRU\ SD\PHQWV DUH GHGXFWHG ́LGDW WKH%RUQVWHLQ&RXUW VWDWHG WKDW WKRVH GDPDJHV ZHUH 3HTXDO WR WKHGLIIHUHQFH EHWZHHQ WKH PDUNHW YDOXH RI WKH WXEHV LW UHFHLYHG DQG UHWDLQHGDQG WKH PDUNHW YDOXH WKDW WKH WXEHV ZRXOG KDYH KDG LI WKH\ KDG EHHQ RI WKHVSHFLILHG TXDOLW\ ́,GDW  Q:H UHFRXQW WKHVH IDFWV LQ GHWDLO EHFDXVH WKH VLPLODULW\ EHWZHHQ%RUQVWHLQDQG WKLV FDVH PLJKW SURPSW WKH DOOWRRHDV\ VXEVWLWXWLRQ RI3JHDU ́ IRU 3WXEHV ́ LQ WKH HTXDWLRQ TXRWHG DERYH ,Q ERWK FDVHV WKH FODLPIRU SD\PHQW ZDV IDOVH EHFDXVH RI D GHIHFWLYH SDUW WKDW D VXEFRQWUDFWRU KDGVXSSOLHG +RZHYHU DV WKH GLVWULFW FRXUW FRUUHFWO\ QRWHG 3%RUQVWHLQZDVFRQFHUQHG RQO\ ZLWK WKH LVVXH RI GDPDJHV DQG SHQDOWLHV DJDLQVW DVXEFRQWUDFWRU ZKR FDXVHV WKH SULPH FRQWUDFWRU WRVXEPLW IDOVH FODLPV ́5RE\,,  ) 6XSS G DW  Q 7KH GHIHQGDQW LQ WKLV )&$ DFWLRQRI FRXUVH LV %RHLQJ QRW 6SHFR :H FDQQRW NQRZ ZK\ WKH *RYHUQPHQWVHWWOHG ZLWK WKH FRQWUDFWRU LQ%RUQVWHLQIRU RQO\ WKH FRVW RI WKH IDOVHO\PDUNHG WXEHV ZKHQ LW KDG FRQWUDFWHG DQG SDLG IRU UDGLR NLWV 2 SHUKDSVWKH WXEHV GLG QRW DIIHFW WKHUHOLDELOLW\ RI WKH UDGLRV6HH %RUQVWHLQ 86 DW  5HKQTXLVW - FRQFXUULQJ LQ SDUW DQG GLVVHQWLQJ LQ SDUWGHVFULELQJ WKH VXEFRQWUDFWRU¶V VFKHPH ,Q WKLV FDVH KRZHYHU WKH 6SHFRJHDUZDV QRW VLPSO\ RI OHVVHU TXDOLW\ WKDQ VSHFLILHG LW ZDV D GHIHFWLYHIOLJKWFULWLFDO SDUW ZKLFK PDGH WKH ORVV RI $LUFUDIW  LQHYLWDEOH$JDLQ ZH QRWH WKDW WKH TXHVWLRQ FHUWLILHG IRU DSSHDO LV 3>Z@KHWKHUWKH >*RYHUQPHQW@ FDQ UHFRYHU GDPDJHV XQGHU WKH >)&$@ IRU ORVV RI DKHOLFRSWHU UHVXOWLQJ IURP WKH IDLOXUH RI D GHIHFWLYH IOLJKWFULWLFDOFRPSRQHQW SDUW ́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́ FLWDWLRQV RPLWWHG&*%#'#$ #E#$(# #+#2 +#$!#$##%26% N#%!*#$@+'O%#N4O*""&('42F" >&%/#$6?%"%#$%&#(?&+( /"%##4&# #1!3-' #-3
%#$@'(#$*%# *#&%1!#"2'!'#$&#&/ #&%!#$* &"+%#&#$%%4&%'&%/ 4&# #&%*(($ '4%*"#'%#$&(* ($@?&%/L(&%## #&%!#$<@+' 4(+#2!*(#$6?%"%#!"*+&%/%2#$&%/ " #$ %  J *&?& % #2 ! ' " /((+(# &%'4* +(! ! (* &"! $&/$? +&#"@$%#$' " /((+(# &%'*+'4! / ##$ %#$/% J#$($'!(+*$&#"(6&?%%/((L(&*&#*/%&#&%@$& "%'&%/#$E#$ #  /%+"4!! +'* (( %'" %2!#$ /' * (( &(+#!) #"%#!)!%(*%# *#(F (3 2,,CC #3&#(#&>(+( (&%*%/++(#$ ##$<
@+'&?*%# *#( ! $&/$? +&#"( !"#$ L( ' " /(?&(&%!# #$"#&? #&%/+(!#$&(#*"4 # %'#'#! +'@$&*$@+'%#4(?'&%#$*%##!'!%(*%# *#(42#$*&?&% #2 %% &#( 4&! &%/ +%'( # %/#$ % #$ %/ #&?&"&* #&%(4#$!&(*  %'#$@&(!$'&%/"&&# 2*%# *#(& 4+%'#$!' " /(#$&/$? +&#"( ; / @&#$#$ 6?%"%# %'42#$ # @($+'  ? %2 ?&(&% ! #$   #$ <
 #%/((
%#$* (4!+(&%/@ (*%# *#+ 2H+&' # %(+ #$ H+  ! #$  #( +(' ! #$" %+! *#+!#$"2L($&*#(M&#(! &+#'((+#' &% #$ 6?%"%#L( **# %* %' +( !$&*##$ #@ (%#!&/$# '2 %'#$(+4(H+%#((!#$$&*#$<
'(%#!*(#$ (" %(!#$6?%"%##*?' " /(!#$((!&* !#I,C

	"#$*+!#$&(* (&(#$ & #" (+!' " /(+%' #$  @$&*$ (&"2 ?&'( ! E- #&"( #$"+%#!' " /(@$&*$#$6?%"%#(+(# &%(4* +(! #$ *# ! #$NO (%F @$ (+4"&##' #$ ! ( ! +'+%#* &"-
	G-3,B D;$ ??&+(24(?'#$ #' " /(E#2&* 2 &4 2* *+ #'# %(+ #$ # #$2 S !!' #$ /?%"%# *"#&%'"% !#$&%A+&('%&#LF   "(#
!#3-'3,C-BC#$&,,IDBH+#&%/"#2-	-,B,-DDENO$/?%"%#&(%#&#'#!+' " /(@$&#?(&#*&?'%? + # F!%"##$	+"+#&%'&* #'#$ #E(#&#+#&%##$/?%"%#!"%2# >% !"* ! +'F@ (#$"#&? #&%/ +( ! #$ M #$! E#$ '?&* !N#$%O'+4' " /(+( (*&!&*(+"@ (*$(%#" >(+#$ ##$/?%"%#@+'4" '*"#2@$F"#-
	 #3$'* '( #&%3-
	--B,CD#$	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

,	+3' #I,  %   &%/ *%#&%+( # " &%# &% #$ # E#$ " (+ ! '&*#  ' " /( &( #$ "+%#@%/!+2 &'%#$* &"F2 #3-#$? +!#$'!*#&?	*/ @?&%/%@*%*'(#$ #' " /(+%'#$*+'H+ .4+#%?*'.#$ "+%#!#$* &"@$&*$&%#$&(* (@+'4#$&" #2 J "&&% ? + ! &%/L( *%# *# #" %+! *#+&* !#I,C/#& #&%(# #/2 (&'@  # *"#(( (#$@&%/* %+%'(# %'E#$ "+%#@%/!+2 &'F#4&"&#'#E#$#&%!#$*%# *#&* * #'##$'!*#&?/ F2 #3**'&%/#+ '&%/!#$ *%# *# %'#$ (+4(H+%#&%?&*&%/4&'#$6?%"%#!#$" %+! *#+'$&*#( (+%&#(%#( (("4 /(! ((#' #(3-
	 #- B&%?&*( !  '& >&#( #$ # *%# &%' ! (2 " >'*#%#+4(E&%*+''* &"(! 2"%#!#$! (2" >' #+4(FD  $ ! *# #$ # ?2 *"%%# 4+# %*%!"'#*%# *#H+&"%#(&(%#/ 2(&/%&!&* %#@$% #$ '!*#&? /  @ ( E!&/$# *&#&* F %' #$+(%*(( 2!!&/$#* +(#$	*/ @ ('!*#&?&* !#I,C@ ('!*#&?" >&%/&%/L(%#&* &"! 2"%#! (!#$+((!#$$&(+%'(# %'&%/!&%/L(?& #&%&%!"(+% 2(&(!$@#* *+ #' " /(+%'#$
%'#$E'&"&%&($'? +FE4%!&#!#$4 / &%F#(#@$&*$&%/*&#( (*%#&%/@(+4# *##$" >#? +!@$ ##$6?%"%#*&?'!"@$ #&#@ ("&('