Document:

exv10w5

 

EXHIBIT 10.5

TD BANKNORTH INC.

RESTRICTED STOCK UNIT AWARD AGREEMENT – CASH SETTLEMENT

2003 EQUITY INCENTIVE PLAN

     THIS AWARD AGREEMENT (the “Agreement”) is made as of this ___day of March 2005 (hereinafter
referred to as the “Date of Grant”) by and between TD Banknorth Inc. (the “Company”) and
___(the “Participant”). Defined terms, unless otherwise defined herein, shall have
the same meaning as set forth in the Plan (as hereinafter defined).

     WHEREAS, the Company has adopted the 2003 Equity Incentive Plan (the “Plan”), which is hereby
incorporated in its entirety by reference herein; and

     WHEREAS, the Company desires to grant to the Participant Restricted Stock Units, as described
in the Plan.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the Company and the Participant agree as follows:

     1. Restricted Stock Units. The Company hereby grants to the Participant an Award of
___Restricted Stock Units (the “Stock Units”), with each Stock Unit representing one
share of common stock, $0.01 par value per share, of the Company (the “Common Stock”), upon the
terms and conditions set forth herein. The number of Stock Units is subject to adjustment as
provided in the Plan. The Stock Units represent an unfunded, unsecured deferred compensation
obligation of the Company.

     2. Vesting of Restricted Stock Units.

     (a) The Stock Units granted by this Agreement shall become 100% vested on the
three-year anniversary of the Date of Grant, except as otherwise provided in the Plan and in
this Agreement.

     (b) Notwithstanding the general rule set forth above, all Stock Units held by the
Participant whose Service to the Company or any Affiliate terminates due to death,
Disability or Retirement (as such terms are defined below ) shall be deemed earned and
become fully vested as of the Participant’s last day of Service with the Company or any
Affiliate. In addition, all Stock Units held by the Participant shall be deemed to be
earned and fully vested upon the occurrence of a Change of Control, as defined below.

     (c) For purposes of this Agreement, “Disability” means that the Participant: (i) is
unable to engage in any substantial gainful activity by reason of any medically

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determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, or (ii) is, by
reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months
under an accident and health plan covering employees of the Company.

     (d) For purposes of this Agreement, “Retirement” means voluntary termination of
employment with the Company or any Affiliate after the Participant has (A) attained age 62.5
and (B) either (1) has become eligible for a fully vested benefit under the Company’s
Retirement Plan, or (2) if at the time of retirement, the Participant was employed by an
Affiliate that is not an “Employer” as defined in the Retirement Plan, would have become so
eligible if his or her Affiliate employer were an “Employer” as defined in the Retirement
Plan, provided that no Retirement may occur prior to the one-year anniversary of the Date of
Grant.

     (e) For purposes of this Agreement, “Change of Control” means a change in the ownership
of The Toronto-Dominion Bank (“TD”) or the Company, a change in the effective control of TD
or the Company or a change in the ownership of a substantial portion of the assets of TD or
the Company as provided under Section 409A of the Code, as amended from time to time, and
any Internal Revenue Service guidance, including Notice 2005-1, and regulations issued in
connection with Section 409A of the Code, except that (i) any change in the ownership,
effective control or ownership of a substantial portion of the assets of the Company
effected by TD and its affiliates shall be excluded, and (2) any change in the ownership,
effective control or ownership of a substantial portion of the assets of TD shall be
excluded if TD and its affiliates are not a majority shareholder of the Company at the time
of such change.

     (f) If the Participant’s Service shall be terminated for any reason other than death,
Disability or Retirement prior to the three-year anniversary of the Date of Grant, then this
Agreement and the Stock Units covered hereby shall expire immediately upon such termination
and all of the Stock Units shall be forfeited. The Participant shall thereafter have no
rights under this Agreement and no rights to receive the cash payment specified in Section 3
below.

     3. Settlement in Cash. When the Stock Units become fully vested pursuant to Section 2
of this Agreement, the Company shall, subject to the implementation of an arrangement between the
Company and the Participant to effect all necessary tax withholding, pay a lump sum cash amount to
the Participant equal to (a) the closing sales price of one share of Common Stock on the vesting
date (or the nearest immediately preceding trading date if the Common Stock is not traded on the
vesting date), multiplied by (b) the number of Stock Units subject to this Agreement.

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     4. No Voting of Underlying Shares of Common Stock. Because no shares of Common Stock
will be issued pursuant to this Agreement, the Participant shall have no right to vote the
underlying shares of Common Stock at any time.

     5. Terms and Conditions. The terms and conditions included in the Plan are
incorporated herein by reference, and to the extent that any conflict may exist between the terms
and conditions included in the Plan and the terms of this Agreement, the terms and conditions
included in the Plan shall control, except as expressly set forth in Section 15 hereof.

     6. Withholding. The Company’s obligation to deliver the cash payment specified in
Section 3 hereof shall be subject to the Participant’s satisfaction of all applicable federal,
state, local and other income and employment tax withholding requirements as required by the Plan.

     7. Transferability. Neither this Agreement nor the Stock Units covered by this
Agreement nor the shares of Common Stock underlying the Stock Units may be assigned, alienated,
pledged, attached, sold or otherwise transferred, encumbered or disposed of by the Participant at
any time, except that this Agreement and the Stock Units may be transferred by will or the laws of
descent and distribution or pursuant to a QDRO.

     8. Administration. The authority to manage and control the operation and
administration of this Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
the Agreement by the Committee and any decision made by it with respect to the Agreement is final
and binding in the absence of action by the Board.

     9. Not an Employment Contract. The grant of the Stock Units covered by this Agreement
does not confer on the Participant any right with respect to continuance of employment or other
Service with the Company or any Affiliate, nor shall it interfere in any way with any right the
Company or any Affiliate would otherwise have to terminate or modify the terms of the Participant’s
employment or other Service at anytime.

     10. Notices. Any written notices provided for in this Agreement or the Plan shall be
in writing and shall be deemed sufficiently given if it is hand delivered, sent by fax or overnight
courier, or sent by postage paid first class mail. Notices sent by mail shall be deemed received
three business days after mailing but in no event later than the date of actual receipt. Notices
shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s
records, or if to the Company, at the Company’s executive office.

     11. Amendment. This Agreement may be amended by written agreement of the Participant
and the Company, without the consent of any other person. In addition, in the event that the
Committee determines, after a review of Section 409A of the Code and all applicable Internal
Revenue Service guidance, that the Plan or any provision thereof or Award thereunder should be
amended to comply with Section 409A of the Code, the Committee may amend the Plan and this
Agreement to make any changes required to comply with Section 409A of the Code.

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     12. Interpretations. Any interpretation of the Committee of the provisions of the Plan
or this Agreement made in good faith shall be final and binding on all parties.

     13. No Personal Liability. The Participant agrees that no member of the Committee or
of the Board shall be personally liable for any actions taken in good faith in connection with the
Plan or this Agreement.

     14. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Maine.

     15. Consent to Amended Definition. The Company and the Participant expressly agree
that, notwithstanding any provision in the Plan or in any employment or retention agreement between
the Company and the Participant to the contrary, the term “Change of Control” shall have the
meaning set forth in this Agreement, as required by recently-enacted Section 409A of the Code, and
not as set forth in the Plan or in any employment or retention agreement between the Company and
the Participant. The Participant acknowledges that the definition of Change of Control included in
this Agreement may in certain circumstances be less favorable to the Participant, and the
Participant agrees to such change. Except as expressly noted in this Section 15, this Agreement
shall not by implication or otherwise alter, modify, amend or in any way affect any of the terms of
the Plan or any employment or retention agreement between the Company and the Participant.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant has hereunto set his or her hand, all as of the day first
above written.

	 	 	 
	ATTEST:

	 	TD BANKNORTH INC.
	 
	 	 
	

	 	By:
	

	 	

	Name:

	 	Name:
	

	 	

	Title:

	 	Title:
	

	 	

	 
	 	 
	

	 	PARTICIPANT
	 
	 	 
	 

	 	

	

	 	Name:
	 

	 	

5exv10w1

 

EXHIBIT 10.1

FORM OF SUBSCRIPTION AGREEMENT

     THIS AGREEMENT (the “Agreement”) is made effective as of the ___day of ___, 2005 (the
“Effective Date”), by and between O2DIESEL CORPORATION, a Delaware corporation, with its principal
office at 100 Commerce Dr., Suite 301, Newark, Delaware 19713 (the “Company”) and [                          ],
of [                                                                               ] (the “Subscriber”).

WHEREAS:

	A.  	The Company desires to issue and sell up to 2,857,143 shares of common stock (the
“Offering”), with $0.0001 par value, at US $0.70 per share (each, a “Common Share”), in an
offer and sale that satisfies certain requirements of Regulation D (“Regulation D”)
promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

	B.  	The Subscriber desires to purchase the number of Common Shares set forth below under the
terms and conditions set forth in this Agreement.

	C.  	The Company is offering the Common Shares pursuant to an exemption from the registration
requirements of the Securities Act available under Regulation D.

	D.  	Subscriber is an “accredited investor” as that term is defined in the Securities Act and
Regulation D thereunder.

     NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the mutual covenants and
agreements herein contained, the receipt of which is acknowledged, the parties covenant and agree
with each other as follows:

1. Agreement to Purchase.

     1.1. On the terms and subject to the conditions of this Agreement, the Subscriber tenders this
subscription and irrevocably subscribes for the purchase of [           
          ] Common
Shares at the price of US $0.70 per share (“Common Shares”) to be purchased at the Closing (as
herein defined), pursuant to an exception from registration under Section 4(2) of the Securities
Act and Regulation D thereunder. By signing this Agreement, the Subscriber acknowledges that the
Company is relying on the accuracy and completeness of the representations contained in this
Agreement in complying with its obligations under applicable securities laws.

     1.2. At the Closing, the Company shall issue to the Subscriber a warrant to purchase one
additional Common Share for each two Common Shares purchased (the “Warrant”) expiring twenty four
(24) months following the Closing (“Warrant Expiration Date”). The Warrant shall be exercisable at
an exercise price of $0.70 per share during the twelve (12) months following the Closing or at an
exercise price of

 

 

$1.05 per share during the period twelve (12) months after the Closing to the Warrant
Expiration Date.

2. Closing.

     2.1. Subject to satisfaction or waiver of the conditions set forth in Section 3 below, the
closing of the sale and purchase of the Common Shares shall take place on the thirtieth
(30th) day after the Effective Date, or such earlier day that is agreed between the
Company and the Subscriber, at the offices of Arnold & Porter LLP, 1600 Tysons Boulevard, McLean,
Virginia 22102, or such other place as the Company may designate (“Closing”).

     2.2. Concurrent with the execution of this Agreement, the Subscriber will tender to the
Company the subscription funds for the Common Shares (a) in the form of a check payable to
“O2Diesel Corporation” to be delivered to Arnold & Porter LLP, 1600 Tysons Boulevard, McLean,
Virginia 22102, Attn.: Kevin J. Lavin, Esq. or (b) by wire transfer to the following account:

	 	 	 	 	 
	 

	 	Account Name:
	 	Arnold & Porter LLP Client Trust Account
	

	 	Account No.
	 	3700 3879
	

	 	ABA No.
	 	254 07 0116
	

	 	Bank Name:
	 	Citibank FSB
	

	 	 	 	1101 Pennsylvania Avenue, NW
	

	 	 	 	Washington, DC 20004
	

	 	Note:
	 	O2Diesel Corporation / Equity Subscription

     This Subscription Agreement shall not be binding upon the Company until the subscription funds
have been received in accordance with this Section 2.2. In the event that less than the full
subscription funds are received, this Subscription Agreement will be binding only in respect of the
number of Common Shares that may be purchased based on the subscription funds received.

     2.3. In the event that the Closing has not occurred by the latest time specified in Sections
2.1, the obligations of the parties in respect of the Closing shall terminate and any subscription
funds tendered in respect of the Closing shall be returned to the Subscriber. In such event, the
Company shall have no liability to the Subscriber other than to return any funds tendered, without
interest.

     2.4. No later than five days after the Closing, the Company shall deliver a treasury order to
its transfer agent sufficient to cause the transfer agent to issue to the Subscriber a share
certificate or certificates representing the Common Shares, registered in the name of the
Subscriber, as provided for below.

     2.5. The Company and the Subscriber also hereby agree to execute and deliver at the Closing
such other documents as may be necessary or appropriate.

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3. Conditions to the Closing.

     As a condition to the Closing, the Company or its Board of Directors (the “Board”) shall:

     (a) Appoint Mr. Art Meyer to the position of Chairman of the Board;

     (b) Appoint two (2) additional independent directors (each an “Additional Director”), in order
for the Company to have a majority of independent directors on its Board (“Independent Board”).
The Company shall offer one of the Additional Director positions to Alan Scarth. Any Additional
Director appointed prior to the Independent Board shall require the unanimous vote of the Board.
In addition, any Additional Director appointed prior to the Closing shall require the prior consent
of Mr. Meyer;

     (c) Recruit and hire an individual to handle the Company’s investor relations;

     (d) Engage a company, such as J.M. Dutton & Associates or an equivalent company, to complete
an independent analyst report on the Company; and

     (e) Obtain an agreement from Mr. Timothy Dean-Smith and Mr. Jeremy Dean-Smith (together, the
“Dean-Smiths”) pursuant to which the Dean-Smiths shall agree restrict the sale of their Common
Shares on terms approved by Clear Channel Enterprises, Inc.

4. Covenants.

     The Company agrees it shall within sixty (60) days following the Closing, prepare and file,
at its own expense, a registration statement or registration statements for all the Common Shares
issued (the “Registration Statements”) under the Securities Act with the Securities and Exchange
Commission (“SEC”). The Company will use its reasonable best efforts to cause such Registration
Statements to become effective within six (6) months from the initial filing thereof.

5. Information Concerning the Company.

     Subscriber acknowledges that it has received all such information as Subscriber deems
necessary and appropriate to enable it to evaluate the financial risk inherent in making an
investment in the Common Shares, including but not limited to the Company’s reports filed under the
Securities Exchange Act of 1934, as amended, with the SEC (“Disclosure Documents”). Subscriber
further acknowledges that Subscriber has (a) received satisfactory and complete information
concerning the business and financial condition of the Company in response to all inquiries in
respect thereof, and (b) been given the opportunity to meet with management of the Company.

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6. Economic Risk and Suitability.

     Subscriber represents and warrants as follows:

     (a) Subscriber is acquiring the Common Shares for his, her or its own account for investment
and not with a view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same; and Subscriber has no present or
contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing
for the disposition thereof. Subscriber is an “accredited investor” as defined in Rule 501(a)
under the Securities Act. Subscriber understands that the Common Shares have not been, and will
not be, registered under the Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of Subscriber’s representations as
expressed herein.

     (b) Subscriber recognizes that there is no assurance of future profitable operations and that
investment in the Company involves substantial risks, and that the Subscriber has taken full
cognizance of and understands all of the risk factors related to the purchase of the Common Shares.

     (c) Subscriber has carefully considered and has, to the extent Subscriber believes such
discussion necessary, discussed with Subscriber’s professional legal, tax and financial advisors
the suitability of an investment in the Company for the particular tax and financial situation of
Subscriber and that Subscriber and/or Subscriber’s advisors have determined that the Common Shares
are a suitable investment for Subscriber.

     (d) The financial condition and investment of Subscriber is such that it is in a financial
position to bear the economic risk of, and withstand a complete loss of, the entire investment.

     (e) Subscriber alone, or with the assistance of professional advisors, has such knowledge and
experience in financial and business matters that the undersigned is capable of evaluating the
merits and risks of Subscriber’s purchase of the Common Shares or has a pre-existing personal or
business relationship with the Company or any of its officers, directors, or controlling persons of
a duration and nature that enables the Subscriber to be aware of the character, business acumen and
general business and financial circumstances of the Company.

     (f) Subscriber has carefully read the Disclosure Documents and the Company has made available
to Subscriber or its advisors all information and documents requested by Subscriber relating to
investment in the Common Shares, and has provided answers to Subscriber’s satisfaction to all of
its questions concerning the Company and the Offering.

     (g) Subscriber has relied solely upon the Disclosure Documents, advice of his or her
representatives, if any, and independent investigations made by the Subscriber and/or its purchaser
representatives, if any, in making the decision to purchase the

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Common Shares and acknowledges that no representations or agreements other than those set
forth in the Disclosure Documents have been made to the Subscriber in respect thereto.

     (h) All information which the Subscriber has provided concerning itself is correct and
complete as of the date set forth below, and if there should be any material change in such
information prior to the acceptance of this subscription for the Common Shares, it will immediately
provide such information to the Company.

     (i) The Subscriber acknowledges that hedging transactions involving the Common Shares may not
be conducted unless in compliance with the Securities Act and all applicable securities laws, rules
and regulation.

     (j) The Subscriber acknowledges there may be material tax consequences to the Subscriber of an
acquisition or disposition of the Common Shares. The Company gives no opinion and makes no
representation with respect to the tax consequences to the Subscriber under United States, state,
local or foreign tax law of the Subscriber’s acquisition or disposition of such securities.

     (k) The Subscriber acknowledges that a broker fee of eight percent (8%) of the funds received
will be paid to Clear Channel Inc.

     (l) Subscriber resides at the address indicated below.

7. Restricted Securities.

     Subscriber acknowledges that the Company has hereby disclosed to Subscriber in writing:

     (a) The Common Shares have not been registered under the Securities Act, or the securities
laws of any state of the United States, and such securities must be held indefinitely unless a
transfer of them is subsequently registered under the Securities Act, or such securities are sold
pursuant to an exemption from registration under the Securities Act; and

     (b) The Company will make a notation in its records of the above-described restrictions on
transfer and of the legend described below.

8. Legend.

Subscriber agrees that all of the certificates representing the Common Shares shall have
endorsed thereon a legend in substantially the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED BY THE HOLDER
FOR ITS OWN ACCOUNT, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO THE
DISTRIBUTION OF SUCH SECURITIES. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF

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1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT
BE SOLD OR OTHERWISE TRANSFERRED EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND COMPLIANCE WITH SUCH STATE SECURITIES LAWS, (II) IN
COMPLIANCE WITH RULE 144 UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR
(III) UPON THE DELIVERY TO O2DIESEL CORPORATION (THE “COMPANY”) OF AN OPINION OF
COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND/
OR COMPLIANCE IS NOT REQUIRED.

9. Further Limitations on Disposition.

     Without in any way limiting its representations set forth above, Subscriber further agrees
that it shall in no event make any disposition of all or any portion of the Common Shares unless:

     (a) There is then in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with said registration statement;
or

     (b) (i) Subscriber shall have notified the Company of the proposed disposition and shall have
furnished the Company with a reasonably detailed statement of the circumstances surrounding the
proposed disposition; (ii) Subscriber shall have furnished the Company with an opinion of his or
her counsel to the effect that such disposition will not require registration under the Securities
Act; and (iii) such opinion shall be in form and substance reasonably acceptable to counsel for the
Company and the Company shall have advised Subscriber of such acceptance.

10. Understandings.

     Subscriber understands, acknowledges and agrees with the Company as follows:

     (a) The Subscriber hereby acknowledges and agrees that the subscription hereunder is
irrevocable by the Subscriber, that, except as required by law, the Subscriber is not entitled to
cancel, terminate or revoke this Agreement or any agreements of the Subscriber hereunder and that
this Agreement and such other agreements shall survive the death or disability of the Subscriber
and shall be binding upon and inure to the benefit of the parties and their heirs, executors,
administrators, successors, legal representatives and permitted assigns. If the Subscriber is more
than one person, the obligations of the Subscriber hereunder shall be joint and several and the
agreements, representations, warranties and acknowledgments herein contained shall be deemed to be
made by and be binding upon each such person and his/her heirs, executors, administrators,
successors, legal representatives and permitted assigns.

     (b) No federal or state agency has made any finding or determination as to the accuracy or
adequacy of the Disclosure Documents or as to the fairness of the terms of

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this offering for investment nor any recommendation or endorsement of the Common Shares.

     (c) The representations, warranties and agreements of the Subscriber contained herein and in
any other writing delivered in connection with the transactions contemplated hereby shall be true
and correct in all respects on and as of the date of the sale of the Common Shares as if made on
and as of such date and shall survive the execution and delivery of this Agreement.

11. Miscellaneous.

     (a) On or after the date of this Agreement, each of the parties shall, at the request of the
other, furnish, execute and deliver such documents and instruments and take such other action as
the requesting party shall reasonably require as necessary or desirable to carry out the
transactions contemplated herein.

     (b) This Agreement, including all matters of construction, validity and performance, shall be
governed by and construed and enforced in accordance with the laws of the State of Delaware, as
applied to contracts made, executed and to be fully performed in such state by citizens of such
state, without regard to its conflict of law rules. The parties hereto agree that the exclusive
jurisdiction and venue for any action brought between the parties under this Agreement shall be the
state and federal courts sitting in Newark, Delaware and each of the parties hereby agrees and
submits itself to the exclusive jurisdiction and venue of such courts for such purpose.

     (c) This Agreement comprises the entire agreement between the parties. It may be changed only
by further written agreement, signed by both parties. It supersedes and merges within it all prior
agreements or understandings between the parties, whether written or oral. In interpreting or
construing this Agreement, the fact that one or the other of the parties may have drafted this
Agreement or any provision shall not be given any weight or relevance.

     (d) This Agreement may be executed in counterparts, each of which will be deemed to be an
original and all of which will constitute one agreement. A facsimile copy is deemed to be
effective delivery of this Agreement.

[Signature Page Appears on Next Page]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first indicated above.

	 	 	 	 	 
	 	O2DIESEL CORPORATION

 	 
	 	By:  	 	 
	 	 	Alan R. Rae 	 
	 	 	President and Chief Executive Officer 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	Name:	  	 	 
	 	Title:	  	 	 

	 	 	 	 	 
	 	Address:	 
	 	  	 	
 	 
	 
	 	
 	 

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