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Home My WebLink AboutAgenda - Full - Ad Hoc Housing Committee - 01/14/2021 - AGENDA City Council Ad Hoc Housing Committee Thursday, January 14, 2021, 5:00 – 7:00 p.m. Location: Virtual Public is encouraged to listen through Zoom: https://zoom.us/j/98351510422 Or Telephone: Dial: (253) 215-8782 or (346) 248-7799 Webinar ID: 983 5151 0422 Committee Members: Ken Summers, District 3 Ross Cunniff, District 5 Emily Gorgol, District 6 Committee Contact: Lindsay Ex, lex@fcgov.com Note: Per Ord. No 079, the Committee Chair, may in consultation with the City Manager and City Attorney, determine that meeting in person would not be prudent for some or all persons due to a public health emergency or other unforeseen circumstance affecting the city. Committee Chair Emily Gorgol has conferred with the City Manager and the City Attorney and has determined that the Committee will conduct this meeting remotely pursuant to Ord. No. 079. As well, an individual Committee member may request to participate remotely even if the rest of the Committee will be there if the member has a concern about their or others’ health or safety by notifying the Clerk at least three hours in advance of the meeting. 1. Call Meeting to Order 2. Approval of December 10, 2020 minutes 3. Agenda Review 4. Discussion Items a. Review of Committee Progress to Date and Overall Reflection (Committee Members) b. Explore: Innovative Partnerships (Clay Frickey, Redevelopment Manager, Joe Rowan, Commercial Loan Manager Impact Development Fund, Stefka Franchi, Chief Executive Officer Elevation Community Land Trust)  Panel discussion on successful housing partnerships and how Fort Collins can maximize opportunities for innovative housing partnerships to help fulfill our housing vision, “Everyone has healthy, stable housing they can afford”  Committee discussion c. Explore: Housing Strategic Plan – Strategies and Initial Priorities (Lindsay Ex, Interim Housing Manager; Meaghan Overton, Sr. City Planner; Megan DeMasters, Environmental Sustainability Specialist; Mollie Fitzgerald, Principal with Root Policy Research)  Review initial set of prioritized strategies and draft guiding principles for implementation  Committee discussion 5. Next Meeting Focus and Process Check-in There are three or more members of City Council that may attend this meeting. While no formal action will be taken by the Council at this meeting, the discussion of public business will occur and the meeting is open to the public via Zoom. ATTACHMENTS 1. Meeting Pre-Work Summary to Prepare for the January 14, 2021 Meeting 2. Table 1: Initial Set of Prioritized Strategies for the Housing Strategic Plan 3. Table 2: Draft Guiding Principles to guide Plan Implementation 4. Draft Engagement Report Summary 5. December 10, 2020 Draft Minutes (and Addendum of Chat Record) January 14, 2021 Ad Hoc Committee Packet – Pre-Work Summary ATTACHMENT 1: MEETING PRE-WORK Pre-Work Item #1: Innovative Partnerships Description: At the December meeting, Committee members indicated an interest in exploring partnerships for overcoming financing gaps and more broadly exploring tools for achieving the Housing Strategic Plan’s draft vision. Staff reached out to leaders in housing organizations to share their experience in creating innovative housing partnerships in cities across Colorado with the Committee. Joe Rowan from Impact Development Fund and Stefka Fanchi from Elevation Community Land Trust both bring a wealth of knowledge and experience on creating innovative housing partnerships and will serve as panelists for the discussion. Discussion Question: What feedback or questions do Committee members have on the perspectives and ideas shared by our panelists? Pre-Work Item #2: Housing Strategic Plan Deep Dive and Strategy Prioritization Description: One of the key elements of the Ad Hoc Housing Committee’s work is to advise on the development of the Housing Strategic Plan. The graphic below outlines the progression of the Housing Strategic Plan process: At this meeting, the focus will be on the following elements of the draft plan:  Analyzing the strategies for Step 6: Prioritize Strategies (see Table 1), which will become Chapter 4 of the Plan;  Initiating the conversation around how Step 8: Implement will be developed, with a focus on the guiding principles (see Table 2) that will be used in implementation, which will become Chapter 5 of the Plan. Step 6: Prioritize Strategies How we got here: At the December 8, 2020 Work Session, Councilmembers reviewed the evaluation criteria and initial list of 56 strategies developed through community input, the Ad Hoc Committee, the project’s consultant (Root Policy Research), and staff. After the Work Session, Root facilitated two staff workshops using the evaluation criteria to develop a refined set of strategies for prioritization in January. Today, we have 26 strategies that have met the evaluation criteria (vision alignment, feasibility, and impact) and will serve as the basis for further prioritization in January. What Step 6 will entail: With this refined set of 26 strategies, staff and Root will run a series of workshops and conversations in January to refine this list even further and arrive at a final set of strategies to be included in the Plan at the February 16 Adoption hearing. Workshops and/or conversations will be held with the Ad Hoc Committee, Home2Health partners, staff, Boards and Commissions, and stakeholder groups. Pre-Work & Discussion Questions Associated with Step 6: Review the refined list of strategies on Table 1 (Attachment 2) and consider the following questions: What feedback do Councilmembers have on this refined set of strategies? What strategies are critical path, i.e., should be done first? What additional clarification would be helpful to include in the final plan? Greatest Challenge Alignment: Challenge #3: The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goals. January 14, 2021 Ad Hoc Committee Packet – Pre-Work Summary Step 7: Consider Plan Adoption (February/March 2021) The draft plan is scheduled to be released in mid-January to facilitate community comment and strategy prioritization. Staff will make revisions based on Council and community feedback and will bring forward the final plan for adoption consideration by City Council at the February 16, 2021 meeting (Ordinance First Reading). Pre-Work & Discussion Question Associated with Step 7: N/A Step 8: Implementation While this phase will officially kick off post adoption, establishing guiding principles for how future decisions will be made will be included in the plan document. Given that no single community in the United States has solved this issue, we will continually need to be in a testing mode to assess which strategies can work, pilot them where appropriate, and then bring the solutions to scale. In other words, adapting to changing conditions – both within the broader market and the community – will be critical as we proceed in the years and decades it will take to reach the vision. To support this work moving toward implementation, a set of draft guiding principles have been developed to document how decisions will be made when the future is uncertain. They will support future strategy selection and overall prioritization to determine annual work planning. While the strategies may be updated or changed on an annual basis, the guiding principles will continue throughout the lifecycle of this plan. Why have guiding principles? Guiding principles recognize that the prioritization of strategies will continue to evolve as different strategies are tested, evaluated, and adapted. In addition, new strategies will arise and ideas we initially prioritize may not have the intended impact upon further analysis. Finally, Fort Collins’ work on housing is bigger than one person, one entity, or any one project, and transparently documenting how decisions will be made going forward is critical for ongoing accountability. When will the guiding principles be applied? It is anticipated these principles will largely be utilized as a tool for overall prioritization of strategies to move forward in any given year. While individual strategies will continue to be assessed against the evaluation criteria, the guiding principles will support a holistic approach to evaluating overall priorities for the housing system. How will the guiding principles be applied? In the annual planning lifecycle (forthcoming in the full draft plan), guiding principles are proposed to be applied with the community, and reviewed by decision makers, to establish the priorities that will be refined further at each design summit. Pre-Work & Discussion Question Associated with Step 8: Review the draft guiding principles in Table 2 (Attachment 3) and consider the following question: What feedback do Councilmembers have on the draft guiding principles? ATTACHMENT 2 January 14, 2021 Ad Hoc Committee Packet – Table 1: Initial Set of Prioritized Strategies for the Housing Strategic Plan Table 1: Initial Set of Prioritized Strategies Associated with Step 6 of the Housing Strategic Plan Review the list of strategies below and consider the following questions: What feedback do Councilmembers have on this refined set of strategies? What strategies are critical path, i.e., should be done first? What additional clarification would be helpful for the final plan? Initial Set of Prioritized Strategies Brief Description Anticipated Outcome Alignment with Community Recommendations (Draft)1 GC #1. Price escalation impacts everyone, and disproportionately impacts BIPOC [Black, Indigenous and People of Color] and low‐income households. Vision Alignment: The following strategies primarily address the "everyone" (i.e., equity) component of the Vision. 1 *2Assess displacement and gentrification risk. Map that illustrates the threat of displacement and gentrification at the neighborhood level Improve housing equity, housing stability, and preservation  While the community did not directly reference this, there were multiple references to no longer being able to afford to live in Fort Collins. 2 Promote inclusivity, housing diversity, and affordability as community values. Prioritize practices that include storytelling and culturally appropriate engagement with a broad range of communities, especially those that are considered historically marginalized and underrepresented. Engagement should focus on issues related to density, structural racism, the need for and myths about affordable housing, etc. Improve housing equity and increase housing choice  Combat stigmas associated with affordable housing  Build community‐wide support for doing things differently 3 Implement the 2020 Analysis of Fair Housing Choice Action Steps. (1) Strengthen fair housing information, educational and training opportunities. (2) Improve the housing environment for people with disabilities. (3) Support efforts to improve residents’ establishment and building of credit. (4) Support programs, projects, and organizations that improve housing access and affordability. (5) Continue to pursue infrastructure and public amenity equity. (6) Pursue public engagement activities to inform Land Use Code and policy updates through Home 2 Health. Improve housing equity and access to opportunity  Focus financial support on lowest income residents  Ensure all neighborhoods have access to amenities  Increase equity in existing programs and services GC #2. There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need. Vision Alignment: The following strategies drive forward affordable, healthy, stable housing for all by increasing housing choice across the entire housing spectrum. 4 Implementation, tracking, and assessment of housing strategies. Regularly assess existing housing policies and programs to ensure they are effective, equitable, and aligned with vision. Develop real‐time, accessible, and performance‐based data that evaluates the performance of these strategies and their progress toward the vision. Increase/monitor effectiveness of all strategies  Increase equity in existing programs and services  Consult with BIPOC and low‐income households on housing policy and programs 1 Staff is continuing to analyze the community engagement feedback and how it supports the prioritized strategies; this section will continue to evolve. 2 * Indicates Council Ad Hoc Committee quick(er) win January 14, 2021 Ad Hoc Committee Packet – Table 1: Initial Set of Prioritized Strategies for the Housing Strategic Plan Initial Set of Prioritized Strategies Brief Description Anticipated Outcome Alignment with Community Recommendations (Draft)1 5 Advocate for housing‐related legislation at state and federal levels. Possible focus areas: monitor and support state level renter protection legislation, advocate for additional housing funding, explore eviction protections and the option of pausing evictions in times of crisis. Varied (e.g., renter protections, funding options) including housing stability and preservation  Advocate for limits on rent prices and/or annual rent increases  Provide emergency gap funding to prevent eviction 6 Visitability policy. Allows easy visitation by mobility impaired residents in a portion/percentage of units in new housing developments. Improve accessibility  N/A 7 Remove barriers to the development of Accessory Dwelling Units. Remove Land Use Code barriers and create more incentives for revamping existing housing/neighborhoods Diversify housing options / Increase housing choice  Explore new housing types, including tiny homes and cooperative housing  Relax restrictions in the Land Use Code to make it easier for developers to build new homes 8 *Extend the city’s affordability term. The City’s current affordability term for projects receiving City funding or incentives is 20 years but many cities use longer terms, commonly 30 up to 60 years, to keep inventory affordable for longer. Increase stability & preservation of affordable rental/owner options  N/A 9 *Off‐cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit. Defines additional housing types; creates opportunity to increase overall supply; recalibrates incentives for affordable housing production; identifies opportunities to add to existing incentives; refines and simplifies development processes Diversify housing options / Increase housing choice  Explore opportunities to limit fees associated with housing  Remove or relax regulations that limit creative reuse of existing homes. GC #3. The City does have some tools to encourage affordable housing, but the current amount of funding and incentives are not enough to meet our goals. Vision Alignment: The following strategies primarily address the affordability component of the Vision. 10 Refine local affordable housing goal. Set more specific housing goals by income level so that it is easier to track progress and communicate our housing goals to developers. Improve targeting of housing investments  Incentivize developers to build affordable housing 11 Create a new dedicated revenue stream to fund the Affordable Housing Fund. Create a fee or tax that generates money for the Affordable Housing Fund. This would allow the City to support additional affordable housing development and rehabilitation. Increase supply and preservation of affordable rental/owner housing  Incentivize developers to build affordable housing 12 Expand partnership(s) with local Community Development Financial Institution (CDFI) to offer gap financing and low‐cost loan pool for affordable housing development. A loan pool and gap financing for affordable housing projects that need additional financial support to be viable Increase supply of affordable rental/owner housing  Incentivize developers to build affordable housing January 14, 2021 Ad Hoc Committee Packet – Table 1: Initial Set of Prioritized Strategies for the Housing Strategic Plan Initial Set of Prioritized Strategies Brief Description Anticipated Outcome Alignment with Community Recommendations (Draft)1 13 *Recalibrate existing incentives to reflect current market conditions (existing incentives include fee waivers, fee deferral, height bonus, density bonus, reduced landscaping, priority processing). Alter incentives for affordable housing development so developers are motivated to use them based on market conditions Increase supply of affordable rental/owner housing  Incentivize developers to build affordable housing 14 *Create additional development incentives for affordable housing. Add more incentives to develop affordable housing in the Land Use Code so that we can increase the supply of affordable housing Increase supply of affordable rental/owner housing  Incentivize developers to build affordable housing GC #4. Job growth continues to outpace housing growth. Vision Alignment: The following strategies increase housing for all by removing barriers to development and increasing housing options. 15 Explore/address financing barriers to missing middle development. Collaborate with developers to understand financing barriers for missing middle projects and consider partnerships with financial institutions to address these barriers Diversify housing options / Increase housing choice  Incentivize developers to build affordable housing  Relax restrictions in the Land Use Code to make it easier for developers to build new homes 16 Remove barriers to allowed densities through code revisions. Revisit or remove barriers in code that limit the number of multifamily units, have square footage requirements for secondary or non‐residential buildings and height limitations restricting the ability to maximize compact sites using tuck‐under parking Diversify housing options / Increase housing choice  Explore new housing types, including tiny homes and cooperative housing  Build more duplexes and small multifamily units  Remove or relax regulations that limit creative reuse of existing homes  Relax restrictions in the Land Use Code to make it easier for developers to build new homes GC #5. Housing is expensive to build, and the cost of building new housing will likely continue to increase over time. Vision Alignment: The following strategies primarily address the affordability component of the Vision. 17 Reconsider affordable housing requirements/funding as part of metro districts. Consider requirement that Metropolitan Districts containing housing must provide affordable housing Increase supply of affordable rental/owner housing  Incentivize developers to build affordable housing 18 Increase awareness & opportunities for collaboration across water districts and other regional partners around the challenges with water costs and housing. Fort Collins has multiple water providers and the cost of water is different in each district. This collaboration could result in more consistent water prices across districts. Improve affordability and housing diversity  Incentivize developers to build affordable housing January 14, 2021 Ad Hoc Committee Packet – Table 1: Initial Set of Prioritized Strategies for the Housing Strategic Plan Initial Set of Prioritized Strategies Brief Description Anticipated Outcome Alignment with Community Recommendations (Draft)1 19 Bolster city land bank activity by allocating additional funding to the program (contingent on adopting additional revenue stream policy). The Land Bank program sets aside land for affordable housing development. This would allow the City to purchase more land to add to the Land Bank. Increase supply of affordable rental/owner housing  Incentivize developers to build affordable housing GC #7. Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent. Vision Alignment: The following strategies primarily address the health and stability components of the Vision. 20 Explore the option of a mandated rental license/registry program for long‐term rentals and pair with best practice rental regulations. Can result in landlord education (fair housing or other), standardized lease agreements in English and Spanish, application fee reasonableness requirements, and health & safety rental inspections. Improve renter protections, housing quality, housing stability and landlord access to information  Explore rental licensing to promote safe and healthy housing  Increase equity in existing programs and services 21 Explore revisions to occupancy limits and family definitions. Occupancy limits and narrow family definitions often create unintended constraints on housing choice and options, including cooperative housing opportunities for seniors and people with disabilities desiring to live with unrelated adults in a single family home setting. Diversify housing options / Increase housing choice  Remove or relax occupancy restrictions  Increase equity in existing programs and services 22 Public Sector Right of First Refusal for Affordable Developments. Typically requires owners of affordable housing to notify the public sector of intent to sell or redevelop property and allow period of potential purchase by public sector or non‐profit partner. Preserve current supply of affordable rental housing  Bolster nonprofits providing “housing first” models of support  Focus financial support on lowest income residents 23 Tenant right of first refusal for cooperative ownership of multifamily or manufactured housing community. Laws that give tenants the right to purchase a rental unit or complex (including a manufactured housing community) before the owner puts it on the market or accepts an offer from another potential buyer. Increase stability and housing options for renters and manufactured housing residents and preservation of affordable housing  Explore opportunities for resident‐ owned manufactured housing communities.  Explore new housing types, including tiny homes and cooperative housing 24 Support community organizing efforts in manufactured home communities and access to resident rights information. Continue and expand existing efforts to work with residents and nonprofit community partners to address the critical need for programs focused on manufactured housing livability and safety, preservation of these as an affordable housing option, and equitable access to City resources in historically underserved neighborhoods and populations. Increase stability and housing options for manufactured housing residents  Explore opportunities for resident‐ owned manufactured housing communities.  Preserve manufactured housing communities. January 14, 2021 Ad Hoc Committee Packet – Table 1: Initial Set of Prioritized Strategies for the Housing Strategic Plan Initial Set of Prioritized Strategies Brief Description Anticipated Outcome Alignment with Community Recommendations (Draft)1 25 *Foreclosure and eviction prevention and legal representation. Provides assistance with mortgage debt restructuring and mortgage and/or utilities payments to avoid foreclosure; short‐term emergency rent and utilities assistance for renters. CARES Act funding is currently dedicated to a legal defense fund for renters but additional resources are needed. Increase stability for vulnerable renters and owners  Provide emergency gap funding to prevent eviction  Increase equity in existing programs and services 26 Small landlord incentives. Incentivize small landlords to keep units affordable for a period of time in exchange for subsidized rehabilitation or tax or fee waivers. Increase affordable rentals, housing stability and preservation, and improve condition  Advocate for limits on rent prices and/or annual rent increases  Explore rental licensing to promote safe and healthy housing Aligning the Plan with Related Efforts Continue the City's ongoing efforts to implement recommendations from current housing‐related studies and other City efforts. (LUC Audit, Fair Housing Analysis, Homeward 2020, 2015‐2019 Affordable Housing Strategic Plan) This work acknowledges that continuing the City’s existing efforts (as will be noted in the full plan chapter) is critical for achieving the City’s goals and achieving the vision. This includes continuing to prioritize direct funding to the lowest‐income residents. Diversify housing options, increase housing choice, increase equity, solutions to end homelessness, preservation of affordable housing  Focus financial support on lowest income residents  Bolster nonprofits providing supportive housing services  Preserve manufactured housing communities  Bolster nonprofits providing “housing first” models of support  Provide emergency gap funding to prevent eviction Continue to align housing work with other departmental plans and programs to leverage more funding resources and achieve citywide goals that advance the triple bottom line of economic, environmental, and social sustainability (could include citywide disparity study). As housing impacts every aspect of the community, integrating this work across the triple bottom line to leverage funds, reduce redundancies, and align toward multiple city goals is critical to success. Citywide alignment  Build community‐wide support for doing things differently  Seek out innovative ideas from the community and peer cities  Increase equity in existing programs and services ATTACHMENT 3 January 14, 2021 Ad Hoc Committee Packet – Table 2: Draft Guiding Principles Table 2: Draft Guiding Principles for the Housing Strategic Plan Review the draft guiding principles below and consider the following question: What feedback do Councilmembers have on the draft guiding principles? Guiding Principles What the Principle Means Center the work in people • One outcome, targeted strategies – achieving the vision that “Everyone has healthy, stable housing they can afford,” will require a suite of strategies that target different income levels, geographies, and identities; the portfolio should reflect the entire system of impacted players • Value in both content & context experts – strategies should be prioritized from both technical and lived experiences. Both forms of expertise should contribute to prioritization. Be Agile and Adaptive • Priorities should be reviewed annually for progress and overall work planning • Priorities and strategies must be specific enough to generate real solutions and flexible enough to address the changing landscape of the community Rapid decision making with inclusive communication and engagement • Be clear that the work requires action while also prioritizing time and space for all community members, especially those impacted by the decisions, to engage with and influence the outcome Build on existing plans and policies – & their engagement • Review adopted plans and policies to inform policy priorities • Also review the feedback community members have already shared on a topic before asking again – respect their time and prior engagement Expect and label tensions, opportunities, and tradeoffs • Recognize and name where limited resources impact decision making, where stakeholders are impacted differently and had different perspectives, and the tradeoffs involved in moving forward with a given solution Direct investment should be focused on the lowest income levels • Limited financial resources must be targeted for housing the lowest income households. Policy should be used all along the continuum to stimulate a wide range of housing choice for residents at all ages, income levels and life stages. • Exceptions can be considered when an innovative technique or strategy is being applied at higher AMI levels but generally should not exceed 120% AMI Transparency in decision making • Be clear regarding how the decision maker came to their conclusions and what was/was not considered. Make decisions for impact, empowerment, and systems (not ease of implementation) • While projects may be shovel ready, they are not always shovel worthy • Assess the entire portfolio of prioritized strategies for a mix of quick wins versus longer-term transformational solutions that may require more dialogue and investment to implement January 1, 2021 HOUSING STRATEGIC PLAN FALL 2020 ENGAGEMENT REPORT Prepared by Cactus Consulting, LLC in partnership with the Home2Health team Executive Summary The City is updating the Housing Strategic Plan. This plan sets housing goals and guides City decisions on policy and funding for the housing system. While previous plans have focused on income-qualified Affordable Housing, this update to the Housing Strategic Plan will address the entire spectrum of housing needs in our community. The draft vision – Everyone has stable, healthy housing they can afford – reflects this shift. In October and November of 2020, nearly 450 community members took the time to share their experiences, provide feedback, and brainstorm solutions to the housing challenges in Fort Collins. This report sums up this early community feedback. Participants highlighted five priorities—Stability, Equity, Choice, Collaboration, and Creativity. Within each priority are suggested strategies for the City, nonprofits, developers, and community members. The report ends with next steps, including important community conversations around density and home ownership and recommendations from the community on how to evaluate strategies and center equity in decision-making. The Process In preparation for updating the Housing Strategic Plan, the City of Fort Collins reviewed local housing data and community feedback gathered through the Home2Health project. As a result, the City identified six key challenges related to housing: 1.Price escalation impacts everyone, and disproportionately impacts BIPOC[Black, Indigenous and People of Color] and low-income households.2.There aren’t enough affordable places available for people to rent or purchase, or what isavailable and affordable isn’t the kind of housing people need.3.The City does have some tools to encourage affordable housing, but the current amount offunding and incentives for affordable housing are not enough to meet our goals.4.Housing is expensive to build, and the cost of building new housing will likely continue toincrease over time.5.It is difficult to predict the lasting effects of COVID-19 and the impacts of the pandemic.6.Housing policies have not consistently addressed housing stability and healthy housing,especially for people who rent.These challenges were later updated and expanded to include a specific mention of the imbalance between job growth and housing growth. The updated list of challenges is available in the Housing Strategic Plan. ATTACHMENT 4 2 The Housing Strategic Plan team designed safe and accessible engagement opportunities to gather feedback on the challenges and ideas for overcoming them. This included Community Guide discussions, in-person (distanced and masked) focus groups, virtual workshops, and an “At-Your-Own Pace” online survey. The goals for engagement were: 1) To provide safe, flexible opportunities for all community members to participate. 2) To close persistent engagement gaps, including under-engagement of Spanish-speaking residents, renters, and residents who make less than $50,000/year. To this end, workshops and surveys, which traditionally result in more responses from women, older adults, and higher income households, were combined with outreach to specific stakeholders and community groups. The City partnered with the Mi Voz community group to discuss housing with 38 Spanish-speaking residents, many of whom reside in mobile home parks. The Partnership for Age-Friendly Communities hosted conversations with older adults and mobile home park residents. The Center for Public Deliberation hosted conversations that targeted residents under 30, and those making less than the median income. Additional engagement with neighborhood groups, including homeowners’ associations, was identified as an opportunity for growth in future engagement opportunities in this plan. Overall, staff and community partners facilitated 37 different engagement opportunities. This included four events facilitated by the Partnership for Age-Friendly Communities (PAFC) and eight by the Center for Public Deliberation (CPD). Through these approaches, the City was able to gather feedback from around 450 participants in October and November of 2020. Demographic data was not analyzed because it was optional and may not provide a full picture of participation. Participants were asked six questions related to current housing challenges in Fort Collins, the housing vision, and their ideas for achieving it. The six questions were: 1. Based on your experience, do these challenges reflect what you know about housing in Fort Collins? 2. How do these challenges affect you and our community more broadly? 3. What needs to change to address these challenges? 4. Who has the ability to make the change needed? 5. What do you wish decision makers understood about your experience with housing? 3 6. How would you like to engage in this project in the future? Though the responses to these questions provided rich information on community experiences and ideas related to housing, it is important to note that this report is also built on the shoulders of many engagement efforts conducted over the past two years, including City Plan, Our Climate Future, and the Home2Health project. Community members have consistently talked about the importance of affordable housing to a healthy environment, an equitable community, and to the physical and mental health of individuals. Prior to analyzing responses from this year’s engagement efforts, we revisited the findings, and data from recent surveys and analysis (including the Social Sustainability Gaps Analysis and the Larimer County Community Health Survey) to ground our work. The following community priorities reflect the collective engagement of hundreds of community members who shared their time, energy, and experiences. Community Priorities Community members generally felt that the housing challenges reflected the experience of housing in Fort Collins. Some shared personal stories of their struggle to afford healthy, stable housing. As one person shared, While organizations like the City may express goals in number of affordable housing units available or number of dollars allocated to emergency rent relief, community members described their goals for housing in very different ways—in the ability to feel secure in their homes, in the ability to choose a home with the amenities that they want and need, and in the ability to rely on their community to work towards a better future for all. Participants suggested a variety of strategies to overcome housing challenges and help everyone in Fort Collins have healthy, stable housing they can afford. These strategies are grouped into five priority areas: 1. Stability. The cost of housing is a major source of stress and instability for many households. People want options for stable rentals and home ownership. 2. Equity. Folks want a diverse community where equity guides how we fund, build, and manage housing. 3. Choice. People recognized that different households have different housing needs. They prioritized having options for the types of housing they rent or buy. This calls for increasing the total supply of housing, revamping the housing we have, and improving access to amenities like public transportation and parks. 4. Collaboration. Housing is a complex problem, and no one organization can do it alone. Community members want the City to take the lead, but also want the community and local organizations to step up and be part of the solution. 5. Creativity. People want new and innovative solutions. They want the City and the community to be willing to do things differently. 4 It is important to note that the community priorities are not listed in order of importance to the community, and many of the strategies and recommendations overlap. Stability The cost of housing is a major source of stress and instability for many households. People want options for stable rentals and home ownership. Community Recommendations: Advocate for limits on rent prices and/or annual rent increases ⧫ Explore rental licensing to promote safe and healthy housing ⧫ Preserve manufactured housing communities ⧫ Explore opportunities for resident-owned manufactured housing communities ⧫ Explore opportunities to limit fees associated with housing ⧫ Bolster nonprofits providing “housing first” models of support ⧫ Provide emergency gap funding to prevent eviction What we heard: The cost of housing was described as a major source of stress and instability for households in Fort Collins. People recognized that easing the cost burden of housing could have a transformational impact on an individual’s mental and physical health, among other things, and praised nonprofit organizations pursuing a “housing first” model in the community. They stressed the importance of gap funding for emergency rent relief to prevent eviction and displacement. Participants expressed frustration that landlords could set and increase prices without any oversight, and suggested regulations at the state or local level that would limit maximum rent prices, reduce extra fees, and/or limit maximum annual increases. Many also recognized that low wages were a barrier to affordability and called on employers to increase wages. People also shared negative experiences with landlords who did not maintain their homes. Some were afraid that asking landlords to maintain homes would invite retaliation or lead to rent increases, putting their housing at risk. A rental registration or licensing program was suggested to put housing protections in place and ensure housing is safe and healthy. Residents of manufactured housing communities discussed the need for park preservation, and the desire to work towards more resident control and ownership of communities. Many owners of manufactured housing discussed struggling with costs despite owning their home because of perpetual increases in lot rent, costly utility bills, and frequent fees. Similarly, some participants expressed concern about the monthly fees from HOAs, condominium associations, and metro districts inflating the cost of home ownership. Guidance for the Housing Strategic Plan: These comments align with community feedback from the Larimer County Community Health Survey and the Home2Health project regarding the central role of housing stability for individual and community well-being. Though many responses suggested home ownership as the preferred source of stability, some community members defined stability in a different way. The Housing Strategic Plan 5 should discuss how each strategy could create pathways to stability for residents, whether that be long-term, stable rentals, cooperative housing, or home ownership. Equity Folks want a diverse community where equity guides how we fund, build, and manage housing. Community Recommendations: Focus financial support on lowest income residents ⧫ Increase equity in existing programs and services ⧫ Bolster nonprofits providing supportive housing services ⧫ Combat stigmas associated with affordable housing ⧫ Consult with BIPOC and low-income households on housing policy and programs What we heard: Though community members discussed and defined equity in different ways, most emphasized the importance of focusing efforts on those who are most affected by the current housing challenges, including BIPOC households, low-income households, people with disabilities, and seniors. While some participants were concerned that specifically discussing challenges for BIPOC households was outside the scope of this plan, most comments expressed a need for more inclusive programs and practices to combat ongoing discrimination and historic inequalities. In general, folks recognized that current funding levels were not adequate to meet the housing needs in our community, and discussed the importance of balancing the very immediate need to keep people’s housing stable with the longer-term need to fund the housing options people want and need in our community. In general, community members prioritized “gap funds” to help households make ends meet and subsidized housing for low-income households over financial assistance to middle-income earners. People discussed the importance of creating specialized support systems so folks can find and keep homes. Participants praised the hard work of nonprofits in this arena and expressed support for bolstering funding and expanding services to meet the needs of seniors, seniors raising grandchildren, immigrant and refugee families, and people who were previously incarcerated. Participants discussed the importance of continuing to consult with BIPOC and low-income households as decisions about housing are being made. As one person stated, Finally, a few community members shared personal experiences of feeling unwelcome in the community because of race, ethnicity, and/or income status. As one participant shared, 6 Community conversations may be needed to break stigmas around affordable housing and promote equity and inclusion in Fort Collins’ neighborhoods. Guidance for the Housing Strategic Plan: These comments align with previous feedback from the Home2Health project and the Social Sustainability Gaps Analysis on the disproportionate impact of housing challenges on BIPOC and low-income households. The Housing Strategic Plan should consider how their decisions can support equitable outcomes (going beyond the traditional focus on equitable opportunities). In addition, the Housing Strategic Plan should include clear opportunities for consultation with BIPOC and low-income households and community conversations around equity in housing. Choice People recognized that different households have different housing needs. They prioritized having options for the types of housing they rent or buy. This calls both for increasing the total supply of housing, and changing the types of housing we are creating. Community Recommendations: Remove or relax occupancy restrictions ⧫ Explore new housing types, including tiny homes and cooperative housing ⧫ Build more duplexes and small multifamily units ⧫ Ensure all neighborhoods have access to amenities ⧫ Remove or relax regulations that limit creative reuse of existing homes. What we heard: Many community members expressed frustration with the lack of housing choices currently available, especially for low- and middle-income earners. As one participant shared, People called for building more housing and revamping the housing Fort Collins has to offer. Community members emphasized the need to build new housing options that people can afford on a typical salary, rather than “luxury” homes or apartments. Some also expressed a desire for options that go beyond the “traditional” large single-family home, including more duplexes, small multi-family developments, and tiny houses. Community members highlighted that the goal should be to increase options—not to expect that every low-income household should live in an apartment building. People stressed the importance of being able to access the amenities that were important to them. Some mentioned the value of having access to a personal yard or garden. Many advocated for improved community amenities in all neighborhoods, including parks, open space, and public transportation. Many participants also saw zoning and occupancy restrictions as a significant barrier to having enough housing, and to having housing that is affordable for all residents. Many supported repealing or modifying “U+2”, which limits the number of unrelated people who can live in a house. This was seen as a potential benefit 7 for people of all ages living on single incomes, and an opportunity to “free up” additional homes for rental or purchase. Some participants acknowledged concerns around noise or parking that can come with higher occupancy levels, but many felt that the rule was unfairly limiting the housing choices of the larger community to prevent problems caused by a small group. Community members also suggested relaxing some restrictions in the Land Use Code to make it easier for homeowners and developers to renovate homes and set up living arrangements that work for modern households. Ideas included making it easier to add Accessory Dwelling Units (carriage houses, in-law apartments, etc.), convert single-family houses into duplexes, and set up cooperative housing. In addition to increasing available housing units, duplexes and Accessory Dwelling Units in particular were seen as a benefit for extended families who could pool resources to purchase a home, and adults for caring for aging parents. Finally, there was a perception among participants that “investment buyers” were unfairly driving up prices and reducing opportunities for home ownership by buying homes to rent out. As one participant shared, Community members expressed frustration that first-time homebuyers were “competing” with purchasers looking for a source of income rather than a place to call home. Some community members suggested limiting the ability of investors to purchase homes, though there was recognition that this would pose a serious challenge. Additional conversations will be necessary to understand the impact of investment buying on the community and discuss opportunities to support first-time homebuyers. Guidance for the Housing Strategic Plan: These comments align with previous feedback from City Plan engagement on relaxing occupancy ordinances and Land Use Code restrictions to allow for more housing choices. The Housing Strategic Plan should discuss how each strategy can increase the housing choices available in our community. In addition, continued conversations are needed on the right balance between encouraging homeownership and providing enough rental options. Collaboration Folks recognized that a challenge like housing requires community-wide action. Many of the ideas for addressing housing challenges would require changes to local or statewide policies. However, responses also highlighted the importance of bringing in nonprofits, developers, and local employers. Community Recommendations: Incentivize developers to build affordable housing ⧫ Relax restrictions in the Land Use Code to make it easier for developers to build new homes ⧫ Collaborate with large employers on housing ⧫ Partner with nonprofits to provide specialized support ⧫ Build community-wide support for doing things differently 8 What we heard: Though many of the recommendations were City policies or programs, community feedback highlighted the importance of collaboration to reaching Fort Collins’ vision for housing. People shared strategies that would encourage developers to build more affordable, diverse types of housing, including waiving fees or providing other financial incentives, and relaxing requirements in the Land Use Code on density (or the number of houses in an area), building height, and parking. Some also suggested placing requirements on builders and developers to provide some affordable housing in all new developers. There was some support for City-led development of subsidized housing or “tiny home” sites, but largely folks did not see the City as a major supplier or manager of affordable housing. People recognized the work of nonprofits to provide housing and supportive services to vulnerable populations, and called for increased collaboration and support for these existing programs. Some also called on local employers to take a larger role in housing policy and provision. In addition to calling for higher wages, folks suggested that large employers should take a greater responsibility for helping their employees find healthy, stable housing. One suggestion was for the City to incentivize employers who provide housing or housing stipends to their employees. Finally, people recognized the need for public awareness and education to build community-wide support for doing things differently. Community members want increased public awareness around the true size, scope, and impact of housing challenges on our community. Some expressed concern that current homeowners may resist changes that they see as a threat to their wealth and livelihood (for example, allowing more homes and occupants in their neighborhood). Guidance for the Housing Strategic Plan: These comments align with past feedback from City Plan, Our Climate Future, Home2Health, and the Larimer County Community Health Survey on the importance of recognizing and leveraging the connections between housing and other important community priorities. Continued collaboration and dialogue will be essential to understanding the needs and the true community costs and benefits of any potential actions. The Housing Strategic Plan should discuss opportunities to leverage the skills and resources of our entire community, including community members, nonprofits, developers, and local employers. Creativity People want new and innovative solutions. They want the City and the community to be willing to do things differently. Recommendations: Explore opportunities for creative reuse of buildings ⧫ Seek out innovative ideas from the community and peer cities What we heard: Fort Collins is a city known for innovation. Community members highlighted that they valued the spirit of innovation and creativity in the City’s approach to housing. Though many recognized that the largest and most impactful solutions were likely to be more traditional strategies—things like changing the Land Use Code and offering incentives to developers—people also wanted to see new and creative ways to provide housing. Some 9 suggestions included turning hotels into group homes and instituting “housing swaps” between older individuals looking to downsize and live in more accessible homes and younger people looking for more space. The City should continue to seek out innovative ideas from within the community, and from peer cities moving forward. Guidance for the Housing Strategic Plan: Though it can be difficult to commit resources and times to ideas that may end up being less impactful, the Housing Strategic Plan should discuss ways to pilot creative strategies for ensuring healthy, stable, affordable housing. Next Steps Community feedback identified five priorities for housing as the City adopts its new Housing Strategic Plan—Stability, Equity, Choice, Collaboration, and Creativity—along with a number of exciting and creative strategies that the City could use along the way. These community priorities and ideas have provided a starting point for the Housing Strategic Plan’s efforts. The following section outlines two important next steps. Evaluate housing strategies with community priorities in mind The community has highlighted priorities for housing that build on prior feedback from the Home2Health project, City Plan, Our Climate Future, and more. As the City evaluates strategies, the following questions could help ensure that these community priorities are centered in decision-making: 1. Does this strategy increase the housing choices available for the community, particularly for vulnerable or traditionally under-resourced groups? 2. Does this strategy increase opportunities for housing stability for renters and homeowners? 3. Does this strategy leverage the resources and skills of our whole community? Incorporating these questions and centering community recommendations in any Housing Strategic Plan documents and decisions will be vital to achieving our housing vision. Facilitate community conversations on “sticky” issues People recognized that changes in housing policy and programs have community-wide impact and require community-wide action. As one participant shared, 10 Honest conversations about what is needed to achieve the vision—Everyone has healthy, stable housing they can afford—will be vital to identifying the best path forward. Below, a few important topics are highlighted. Understanding and de-stigmatizing affordable housing Participants recognized that there are many misconceptions and fears around affordable housing. More conversations are needed to understand what affordable housing looks like in our community, and to promote acceptance and understanding between all people—no matter their income level or whether they rent or own their home. Balancing Density and Occupancy Many recognized that removing U+2 and/or increasing density in neighborhoods may be a challenging transition and could be unpopular with some homeowners. Some participants acknowledged concerns around noise or parking that can come with higher occupancy levels, but many felt that the rule was unfairly limiting the housing choices of the larger community to prevent problems caused by a small group. More conversations are needed to identify the root causes of occupancy concerns, and discuss potential alternatives. Balancing Options for Renting and Home Ownership There was a perception among participants that “investment buyers” were unfairly driving up prices and reducing opportunities for home ownership by buying homes to rent out. More data is still needed on the impact of investment buying in Fort Collins, and the right balance between promoting home ownership and supporting quality rental supply. Understanding the housing goals of the community, including what percentage prefer renting over home ownership, and the types of rentals and for-sale units that people would select, could help the City to better understand challenges and opportunities related to investment buying. Ultimately, additional conversations could reduce the perception of competition between renters and homeowners for housing. Conclusion The Fort Collins vision for housing – everyone has healthy, stable housing they can afford -– is not currently a reality for everyone. Realizing this vision and overcoming the complex challenges of our housing system will require big, community-wide solutions. Overall, these responses suggest that the community is ready to do things differently. 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x&ĞďƌƵĂƌǇʹ,ŽƵƐŝŶŐ^ƚƌĂƚĞŐŝĐWůĂŶĚĞĞƉĚŝǀĞ xDĂƌĐŚͲƉůĂŶŝŵƉůĞŵĞŶƚĂƚŝŽŶ͕ĞŶĚͲŽĨͲƚĞƌŵ xƉƌŝůʹǁŚĞƌĞƚŽŚĞĂĚŶĞǆƚ DĞĞƚŝŶŐĚũŽƵƌŶĞĚ͗ϳ͗ϬϬ EhD ŚĂƚdŚƌĞĂĚ &ƌŽŵDĂƌĐǇzŽĚĞƌƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϳ͗ϭϵWD zĞƐǁĞĚŽĂůƌĞĂĚǇŚŽůĚĂĐŽŶƚƌĂĐƚĨŽƌůĞŐĂůĚĞĨĞŶƐĞĨƵŶĚƚŚƌŽƵŐŚZ^ &ƌŽŵĂƌƌŝĞĂŐŐĞƚƚͲŝƚǇƚƚŽƌŶĞǇƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϳ͗ϮϲWD /ŚĂǀĞƚŽůĞĂǀĞǇŽƵŝŶ/ŶŐƌŝĚĞĐŬĞƌΖƐƚƌƵƐƚǇŚĂŶĚƐǁŚŝůĞ/ŐŽƚŽĂĐŽŵƉĞƚŝŶŐĐŽŵŵŝƚŵĞŶƚ͘/ΖůůďĞďĂĐŬ͊ &ƌŽŵŬĂƚƌŝŶĂǀĂŶĚĞƌŚŽƌƐƚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϭϳWD ZĞƉĞĂůhнϮ &ƌŽŵũŽƐĞƉŚƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϭϴWD ZĞƉĞĂůhнϮ &ƌŽŵ:ĂŬŽďĞĐŬŝƐŚƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϭϴWD ƌĞƉĞĂůhнϮ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϭϴWD ůůŽĨƚŚĞŶƵĂŶĐĞƐŚŽǁŶŚĞƌĞƐŚŽǁƐǁŚĂƚĂďůƵŶƚŝŶƐƚƌƵŵĞŶƚhнϮŝƐ͘&ĞĞůƐůŝŬĞĂĐŽŵďŝŶĂƚŝŽŶŽĨĞǆƉĂŶĚŝŶŐƚŽ DĞнϯ͕ŝŶĐƌĞĂƐĞĚƉĂƌŬŝŶŐĞŶĨŽƌĐĞŵĞŶƚ͕ĂŶĚƚŚĞĨŽĐƵƐŽŶƌĞƉĞĂƚĞƌƉƌŽƉĞƌƚŝĞƐŝƐǁŚĞƌĞƉƌŽŐƌĞƐƐĨŽƌǁŽƌŬŝŶŐ ƉĞŽƉůĞĂŶĚĐŽŵƉƌŽŵŝƐĞĐĂŶďĞĨŽƵŶĚ͘ &ƌŽŵ^ŽƌďĂƌŝŬŽƌ/ŶĞŶĞƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϮϬWD ZĞƉĞĂůhнϮ &ƌŽŵ/ƐĂŝĂŚĞŶŶŝŶŐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϮϬWD ,ŝ͕ŵǇŶĂŵĞŝƐ/ƐĂŝĂŚĞŶŶŝŶŐƐ/ĂŵƐĞĐŽŶĚǇĞĂƌƐƚƵĚĞŶƚĂƚŽůŽƌĂĚŽ^ƚĂƚĞƐƚƵĚǇŝŶŐWŽůŝƚŝĐĂů^ĐŝĞŶĐĞ͕/ĂŵĂ ƐĞŶĂƚŽƌĨŽƌƚŚĞƐƚƵĚĞŶƚŐŽǀĞƌŶŵĞŶƚŽƌŐĂŶŝǌĂƚŝŽŶ^^hǁĞĂƌĞƉƵƐŚŝŶŐƚŽŝŶĐƌĞĂƐĞƚŚĞŽĐĐƵƉĂŶĐǇůŝŵŝƚďǇϭƚŽ ĂhнϯƚŽƐŚŽǁƚŚĂƚƚŚĞǀŽŝĐĞƐŽĨƐƚƵĚĞŶƚƌĞƐŝĚĞŶƚƐŽĨ&ŽƌƚŽůůŝŶƐĂƌĞŚĞĂƌĚ͘ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϭWD /ŚĂǀĞĂƋƵĞƐƚŝŽŶĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐƐƉĞĂŬĞƌĂďŽƵƚŶĞŝŐŚďŽƌŚŽŽĚƋƵĂůŝƚǇƌĂƚŝŶŐͲǁŚĂƚĂƌĞǇŽƵĚŽŝŶŐƚŽĞůŝŵŝŶĂƚĞ ďŝĂƐŝŶƚŚŽƐĞƌĂƚŝŶŐƐĨŽƌŶĞŝŐŚďŽƌŚŽŽĚƐƚŚĂƚƉƌŝŵĂƌŝůǇĐŽŶƚĂŝŶƌĞƐŝĚĞŶƚƐŽĨĂůŽǁĞƌƐŽĐŝŽĞĐŽŶŽŵŝĐƐƚĂƚƵƐŽƌ ƌĞƐŝĚĞŶƚƐŽĨĐŽůŽƌ͍ &ƌŽŵ:ĞŶŶŝĨĞƌƌĂǇƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϭWD ŝĚŵĞƐďƌŝŶŐƵƉƚŚĂƚƚŚĞ^ƚĂƚĞŽĨ/ŽǁĂĨŽƵŶĚŽĐĐƵƉĂŶĐǇďĂƐĞĚŽŶƚŚĞĚĞĨŝŶŝƚŝŽŶŽĨĨĂŵŝůǇƚŽďĞĂŐĂŝŶƐƚƚŚĞ &Ăŝƌ,ŽƵƐŝŶŐĐƚĂŶĚƚŚĂƚƚŚĞǇŚĂĚƚŽŵŽǀĞƚŚĞƉƌŽŐƌĂŵĨƌŽŵĂhнϮƚǇƉĞƉƌŽŐƌĂŵƚŽĂŵŽƌĞŶƵĂŶĐĞĚƉƌŽŐƌĂŵ͍ /ŽǁŶϮƌĞŶƚĂůŚŽŵĞƐŝŶŵĞƐĂŶĚǁĂƐƉĂƌƚŽĨƚŚĂƚĚŝƐĐƵƐƐŝŽŶĂĐŽƵƉůĞǇĞĂƌƐĂŐŽ͘ &ƌŽŵ/ƐĂŝĂŚĞŶŶŝŶŐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϮϮWD tŚĂƚĐŽŶƚƌŽůĚŽĞƐƚŚĞĐŝƚǇŽĨ&ŽƌƚŽůůŝŶƐŚĂǀĞƚŽĞŶƐƵƌĞƚŚĂƚůĂŶĚůŽƌĚƐĚŽŶΖƚũƵƐƚƌĂŝƐĞƚŚĞƌĂƚĞƐĨŽƌƚŚĂƚĞǆƚƌĂ ƉĞƌƐŽŶ͍ &ƌŽŵ<ǇůĞ<ƵŵũŝĂŶƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϰWD dŚĞĚĞĨŝŶŝƚŝŽŶŽĨƚŚĞƉƌŽďůĞŵŝƐƚŚĞŝƐƐƵĞŚĞƌĞ͘dŚĞƐĞĂƌĞŶŽƚΗŶƵŝƐĂŶĐĞƐ͕ΗƚŚĞƐĞĂƌĞƉĞŽƉůĞ͘tĞĐĂŶƌĞŐƵůĂƚĞ ƉĂƌŬŝŶŐ͕ŶŽŝƐĞ͕ĂŶĚƚƌĂƐŚǁŝƚŚŽƵƚƉƵŶŝƐŚŝŶŐƚŚŽƐĞŝŶŽƵƌĐŽŵŵƵŶŝƚǇǁŚŽĂƌĞũƵƐƚƚƌǇŝŶŐƚŽƐƵƌǀŝǀĞ͘ &ƌŽŵ>ĞǆŝKƌŐŝůůƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϮϰWD ƐĂŶĂƐƐŽĐŝĂƚĞƐĞŶĂƚŽƌĨŽƌƚŚĞtĂƌŶĞƌŽůůĞŐĞŽĨEĂƚƵƌĂůZĞƐŽƵƌĐĞƐĂƚ^h͕/ŝŵƉůŽƌĞǇŽƵƚŽƌĞƉĞĂůhнϮŽŶ ďĞŚĂůĨŽĨŵǇƐĞůĨĂŶĚŵǇĐŽŶƐƚŝƚƵĞŶƚƐ͘ &ƌŽŵ>ŝŶĚƐĂǇǆͮƐŚĞ͕ŚĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϰWD 'ŽŽĚĞǀĞŶŝŶŐĞǀĞƌǇŽŶĞ͕ƚŚĂŶŬǇŽƵĨŽƌĂůůŽĨƚŚĞƐĞĐŽŵŵĞŶƚƐĂŶĚƋƵĞƐƚŝŽŶƐ͘/ĨǁĞŚĂǀĞƚŝŵĞĂƚƚŚĞĞŶĚ͕ ŽƵŶĐŝůŵĞŵďĞƌ'ŽƌŐŽůǁŝůůǁŽƌŬǁŝƚŚƚŚĞŽŵŵŝƚƚĞĞŵĞŵďĞƌƐƚŽƌĞƐƉŽŶĚ͘ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϮϱWD /ĂŵĂůƐŽǁŽƌƌŝĞĚĂďŽƵƚŚŽǁŵĂŶǇƉĞŽƉůĞŝŶ&ŽƌƚŽůůŝŶƐƌĞůǇŽŶƌĂĐŝĂůƐƚĞƌĞŽƚǇƉĞƐĂďŽƵƚůĂƌŐĞĨĂŵŝůŝĞƐƵƐĞƚŚĞ hнϮƉŽůŝĐǇƚŽŚĂƌĂƐƐŝŶĚŝǀŝĚƵĂůƐǁŚŽĂƌĞĂĐƚƵĂůůǇĐŽŵƉůŝĂŶƚ͘ůƐŽ͕ĐŽůůĞŐĞƐƚƵĚĞŶƚƐĂƌĞŽĨƚĞŶƵŶĂǁĂƌĞŽĨŚŽǁ &ŽƌƚŽůůŝŶƐĞŶĨŽƌĐĞƐƚŚŝƐƉŽůŝĐǇǁŚĞŶƚŚĞǇĨŝƌƐƚĐŽŵĞƚŽ^h͕ƚŚĞǇŽĨƚĞŶŐĞƚƉƵƐŚĞĚŝŶƚŽĂŶƵŶƐĂĨĞĞŶǀŝƌŽŶŵĞŶƚ ďĞĐĂƵƐĞƚŚĞǇĚŽŶΖƚƵŶĚĞƌƐƚĂŶĚǁŚĂƚŽƚŚĞƌŽƉƚŝŽŶƐĂƌĞ͘ &ƌŽŵ>ŝŶĚƐĂǇǆͮƐŚĞ͕ŚĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϱWD /ĨǁĞƌƵŶŽƵƚŽĨƚŝŵĞ͕ƐƚĂĨĨŝƐĂůƐŽŚĂƉƉǇƚŽƌĞƐƉŽŶĚŝŶĚŝǀŝĚƵĂůůǇ͘WůĞĂƐĞĚŽŶΖƚŚĞƐŝƚĂƚĞƚŽƌĞĂĐŚŽƵƚƚŽŵĞĂƚ ůĞǆΛĨĐŐŽǀ͘ĐŽŵ͘ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϲWD /ŶŽƌĚĞƌƚŽďĞƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂůůǇƐƵƐƚĂŝŶĂďůĞĐŝƚǇǁĞǁĂŶƚƚŽďĞ͕ǁĞŶĞĞĚƚŽƌĞƉĞĂůhнϮ͊ŝƚŝƐŚŽƌƌŝďůĞĨŽƌƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚďŽƚŚŝŶƚĞƌŵƐŽĨůĂŶĚƵƐĞĂŶĚĐĂƌďŽŶĨŽŽƚƉƌŝŶƚ͘/ŶĂĚĚŝƚŝŽŶ͕hнϮǁĂƐŵĂĚĞĂƐĂĚŝƐĐƌŝŵŝŶĂƚŽƌǇůĂǁ ĂŐĂŝŶƐƚŝŵŵŝŐƌĂŶƚǁŽƌŬĞƌƐŝŶƚŚĞϲϬ͛Ɛ͘ZĂĐŝĂůĞƋƵŝƚǇŝƐŽŶĞŽĨƚŚĞŐŽĂůƐŽĨƚŚĞŝƚǇŽĨ&ŽƌƚŽůůŝŶƐ͛͞KƵƌůŝŵĂƚĞ &ƵƚƵƌĞ͟ƉůĂŶ͕ĂŶĚƌĞƉĞĂůŝŶŐhнϮŝƐĂƐƚĞƉƚŽǁĂƌĚƐƌĂĐŝĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůũƵƐƚŝĐĞ͘ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϴWD ^ŝƌ͕ǇŽƵƌĞƉƌĞƐĞŶƚƚŚĞǁŚŽůĞĐŝƚǇ͘ŶĚĂƐĂŶĞůĞĐƚĞĚŽĨĨŝĐŝĂů͕ǇŽƵƌƉƌŝŵĂƌǇƌŽůĞŝƐĂƐƐŚĞƉŚĞƌĚƚŽƚŚŽƐĞŝŶǇŽƵƌĐŝƚǇ ǁŚŽĂƌĞŵŽƐƚĂƚƌŝƐŬ͘WůĞĂƐĞŽƉĞŶǇŽƵƌŚĞĂƌƚƚŽƚŚĞǁŽƌŬŝŶŐĐůĂƐƐ͕ƐƚƵĚĞŶƚƐ͕ĂŶĚƉĞŽƉůĞŽĨĐŽůŽƌǁŚŽĂƌĞƚŚĞ ǀŝĐƚŝŵƐŽĨƚŚĞĐƵƌƌĞŶƚŚŽƵƐŝŶŐŽĐĐƵƉĂŶĐǇůĂǁƐ͘ &ƌŽŵũŽĞůůĞƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϮϵWD ZĞƉĞĂůhнϮ͊ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϬWD /ĂŐƌĞĞǁŝƚŚǁŚĂƚ:ĞƐƐĞŚĂƐƐĂŝĚŚĞƌĞ͘/ĂƉƉƌĞĐŝĂƚĞƐŚĂƌŝŶŐƉĞƌƐŽŶĂůƐƚŽƌŝĞƐ͕ďƵƚ/ΖŵƵŶĐŽŵĨŽƌƚĂďůĞǁŝƚŚƚŚĞĨĂĐƚ ƚŚĂƚŚŝƐƉĞƌƐŽŶĂůĞǆƉĞƌŝĞŶĐĞǁŝƚŚŽŶĞŚŽŵĞǁŝƚŚŵƵůƚŝƉůĞŽĐĐƵƉĂŶƚƐĐĂƵƐŝŶŐŝƐƐƵĞƐŝŶƚŚĞŶĞŝŐŚďŽƌŚŽŽĚŝƐ ŐƵŝĚŝŶŐƉŽůŝĐǇŵĂŬŝŶŐ͕ŽƌĂƚůĞĂƐƚŝƐƚŚĞŽƌŝŐŝŶƐŽĨŚŝƐƐƵƉƉŽƌƚĨŽƌhнϮ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϬWD ŽůůĞŐĞƐƚƵĚĞŶƚƐĂƌĞĂůƐŽǇŽƵƌĐŽŶƐƚŝƚƵĞŶĐǇ͘/ŶĂǇĞĂƌƚŚĂƚƐĂǁƵŶƉƌĞĐĞĚĞŶƚĞĚůĞǀĞůƐŽĨǇŽƵƚŚĂĐƚŝǀŝƐŵĂŶĚ^h ƉŽůŝƚŝĐĂůŝŶƚĞƌĞƐƚ͕ǁĞǁŝůůďĞƉƵƐŚŝŶŐƉĞŽƉůĞƚŽǀŽƚĞŝŶƉƌŝůĂŶĚŝŶƚŚĞĨƵƚƵƌĞ͘^hŝƐĂĨƵŶĚĂŵĞŶƚĂůďĂĐŬďŽŶĞŽĨ ŽƵƌĞĐŽŶŽŵǇĂŶĚŽƵƌĐŽŵŵƵŶŝƚǇ͕ŽƵƌĐŽƵŶĐŝůŶĞĞĚƐƚŽƌĞƉƌĞƐĞŶƚƵƐ͘dŚĞƉĞƚŝƚŝŽŶŝƐŶŽůŽŶŐĞƌǀŝĂďůĞĚƵĞƚŽƚŚĞ ůŝŵŝƚĂƚŝŽŶƐĐĂƵƐĞĚďǇKs/ĂŶĚĂƐŚŽƌƚƚŝŵĞůŝŶĞ͘tĞǁŝůůďĞǁĂƚĐŚŝŶŐĂŶĚďƵŝůĚŝŶŐĐŽĂůŝƚŝŽŶƐŽĨǀŽƚĞƌƐŵŽǀŝŶŐ ĨŽƌǁĂƌĚ͘ZĞŐĂƌĚůĞƐƐ͕hнϮŝƐďĞǇŽŶĚƐŝŵƉůǇĂ^hŝƐƐƵĞ͕ŝƚĞĨĨĞĐƚƐĂůůŽĨ&ŽƌƚŽůůŝŶƐ &ƌŽŵ/ƐĂŝĂŚĞŶŶŝŶŐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϬWD dŚŝƐŝƐĂƉŽůŝĐǇƚŚĂƚĐĂƵƐĞƐŐƌĞĂƚŚĂƌĚƐŚŝƉƐĨŽƌƐƚƵĚĞŶƚƐĂĨŽƌŵŝĚĂďůĞǀŽƚŝŶŐďůŽĐŬ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϬWD /ƚƐĞĞŵƐĂƉƉĂƌĞŶƚƚŚĂƚƚŚĞƌĞĂƌĞďĂƌƌŝĞƌƐƚŽŝŶĐƌĞĂƐŝŶŐŽĐĐƵƉĂŶĐǇŝŶŝƚƐƌĞůĂƚŝŶŐƚŽŝŶĐƌĞĂƐŝŶŐĂĨĨŽƌĚĂďŝůŝƚǇ͕ďƵƚŝĨ ƚŚĞƌĞŝƐŶŽƚĂŶĂǀĞŶƵĞĚŝƌĞĐƚůǇĨŽƌƌĞŶƚĐŽŶƚƌŽů;ǁŚĞŶĂĚĚŝŶŐĂŶĂĚĚŝƚŝŽŶĂůƚĞŶĂŶƚͿ͕ǁŚĂƚZŽƵƌŽƉƚŝŽŶƐŝŶ ĨŝŶĚŝŶŐĂƉƉůŝĐĂďůĞŵĞƚŚŽĚƐƚŽŝŶĐƌĞĂƐĞŽĐĐƵƉĂŶĐŝĞƐ;ĂŶĚŝŶƚƵƌŶůŽǁĞƌƌĞŶƚĐŽƐƚƐͿ͍ &ƌŽŵ<ǇůĞ<ƵŵũŝĂŶƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϭWD /ĨǇŽƵǁĂŶƚƚŚĞǁŝůůŽĨƚŚĞƉĞŽƉůĞ͕ƚŚĞŶǇŽƵƐŚŽƵůĚŚĂǀĞŶŽƉƌŽďůĞŵǀŽƚŝŶŐƚŽƉƵƚƚŚŝƐŽŶƚŚĞďĂůůŽƚ͘>ĞƚƚŚĞ ƉĞŽƉůĞĚĞĐŝĚĞ͘ZĞůǇŝŶŐŽŶĂƉŚǇƐŝĐĂůƉĞƚŝƚŝŽŶĚƵƌŝŶŐĂƉĂŶĚĞŵŝĐŝƐĚĂŶŐĞƌŽƵƐĂŶĚĞŶƚŝƌĞůǇĐŽŶƚƌĂƌǇƚŽŝƚǇ ŽƵŶĐŝůΖƐKs/ͲϭϵŐƵŝĚĂŶĐĞ͘ &ƌŽŵ^ĂŵtŚŝƚĂŬĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϮWD ΔΔΔ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϮWD ŽǇŽƵĂůůƵŶĚĞƌƐƚĂŶĚƚŚĂƚƚŚĞƌĞĂƌĞƉĞŽƉůĞŝŶǇŽƵƌĐŝƚǇĐŚŽŽƐŝŶŐďĞƚǁĞĞŶƌĞŶƚ͕ĨŽŽĚ͕ĂŶĚŵĞĚŝĐŝŶĞƌŝŐŚƚŶŽǁ͍ dŚĞǁĂǇƚŚĂƚĂŚŽŵĞŽǁŶĞƌďĞŝŶŐĚŝƐƚƵƌďĞĚďǇĂĐĂƌŝŶĨƌŽŶƚŽĨƚŚĞŝƌŚŽŵĞŝƐďĞŝŶŐƉƵƚŽŶƉĂƌǁŝƚŚǀĞƌǇďĂƐŝĐ ůŝǀĂďŝůŝƚǇŝƐƐƵĞƐŝƐŵĂŬŝŶŐŵĞƐĂĚ͗; &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϮWD ŚƚƚƉƐ͗ͬͬĐŽůůĞŐŝĂŶ͘ĐŽŵͬϮϬϭϴͬϬϮͬĐŝƚǇͲĐŽƵŶĐŝůͲŵĞŵďĞƌͲƌŽƐƐͲĐƵŶŶŝĨĨͲůŽŽŬƐͲĨŽƌͲĐƐƵͲƐƚƵĚĞŶƚͲƉĞƌƐƉĞĐƚŝǀĞͬ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϯWD zĂ͕/ĂŐƌĞĞǁŝƚŚ<ǇůĞ͘,ĂǀŝŶŐƚŚĞƐƚƵĚĞŶƚƐ;ǁŚŽĂƌĞƚŚĞůŝĨĞďůŽŽĚŽĨǇŽƵƌĐŝƚǇͿŽƵƚĚŽŝŶŐĂƉĞƚŝƚŝŽŶǁŚĞŶƚŚŝƐĐĂŶ ďĞĐŚĂŶŐĞĚ;ŽƌĂƚůĞĂƐƚƉƵƚĚŝƌĞĐƚůǇŽŶƚŚĞďĂůůŽƚͿŝƐĂůŝƚƚůĞŝĐŬ͘ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϯWD ŽƵŶĐŝůŵĂŶƵŶŶŝĨĨ͕ƚǁŽǇĞĂƌƐĂŐŽͲ&ĞďƌƵĂƌǇϮϬϭϴͲǇŽƵĞǆƉƌĞƐƐĞĚǇŽƵĂƌĞŝŶƚĞƌĞƐƚĞĚŝŶĐŽůůĂďŽƌĂƚŝŶŐǁŝƚŚ ƐƚƵĚĞŶƚƐƚŽĨŝŶĚĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐ͍,ŽǁĐĂŶǁĞŵĂŬĞƚŚŝƐĂƌĞĂůŝƚǇĂŶĚŶŽƚũƵƐƚĂĐŽŶƚŝŶƵĞĚĚŝƐĐƵƐƐŝŽŶ͍ &ƌŽŵũŽĞůůĞƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϯWD ΔΔΔ &ƌŽŵ:ĂŬŽďĞĐŬŝƐŚƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϯWD ΔΔ &ƌŽŵŵĞůǇƌƵǌƌƌĂǌŽůĂƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϯWD /ŶƌĞŐĂƌĚƚŽƚŚĞŶĞŝŐŚďŽƌŚŽŽĚƋƵĂůŝƚǇĂƐƉĞĐƚŝƐďĂƐĞĚŽŶǁŚŝƚĞŶĞƐƐĂŶĚǁĞĂůƚŚ͘dŚŝƐŚŽƵƐŝŶŐŝƐƐƵĞŝŶǀŽůĐĞƐ ĂƐƉĞĐƚƐŽĨƌĂĐĞ͕ĐůĂƐƐ͕ĂŐĞ͕ŝŵŵŝŐƌĂƚŝŽŶƐƚĂƚƵƐĞƚĐ͘dŚŽƐĞŵĂƌŐŝŶĂůŝǌĞĚĂƌĞŵŽƐƚŝŵƉĂĐƚĞĚĂŶĚďǇĐŚŽŽƐŝŶŐƚŽŶŽƚ ƌĞƉƉĞĂůhнϮŝƚĞĐŽŶŽŵŝĐĂůůǇŝŵƉĂĐƚƐƚŚŽƵƐĂŶĚƐŽĨƌĞƐŝĚĞŶƚƐŽĨ&ŽƌƚŽůůŝŶƐ͘dŚŝƐĂŵƉůŝĨŝĞƐĞĐŽŶŽŵŝĐŝŶƐĞĐƵƌŝƚǇ͘ dŚŝƐĂĚĚĞĚĞĐŽŶŽŵŝĐƐƚƌĞƐƐĂĨĨĞĐƚƐŵĞŶƚĂůŚĞĂůƚŚŽĨƚŚĞƐĞƉĞŽƉůĞ͘dŚĞǁĞůůďĞŝŶŐŽĨ&ŽƌƚŽůůŝŶƐƌĞƐŝĚĞŶƚƐƐŚŽƵůĚ ďĞĂƉƌŝŽƌŝƚǇ͘ &ƌŽŵ>ŝƐĂƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϰWD <ƌŝƐƚŝŶƉůĞĂƐĞďĞϭϬϬйƐƵƌĞŽĨƚŚĂƚƐƚĂƚĞŵĞŶƚďĞĨŽƌĞǇŽƵƉƵƚŝƚŽƵƚƚŚĞƌĞ͘dŚĂŶŬƐ͘ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϰWD /ƚ͛ƐŵŽƌĞƚŚĂŶĂĚŽŐǁŚŝƐƚůĞĂŐĂŝŶƐƚǁŽƌŬŝŶŐĐůĂƐƐ͕>ĂƚŝŶǆ͕ƐƚƵĚĞŶƚƐ͘/ƚ͛ƐĂĐƚƵĂůĚŝƐĐƌŝŵŝŶĂƚŝŽŶ͘ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϰWD /ŶĨĂĐƚ͕/ǁŽƵůĚŐŽƐŽĨĂƌƚŽŵĂŬĞƚŚĞĂƌŐƵŵĞŶƚƚŚĂƚƌĞůǇŝŶŐŽŶĂƉŚǇƐŝĐĂůƉĞƚŝƚŝŽŶŝƐŝŶƚĞŶƚŝŽŶĂůƚŽŐĂƚŚĞƌůĞƐƐ ƐŝŐŶĂƚƵƌĞƐŽƌŐĂƌŶĞƌůĞƐƐĂƚƚĞŶƚŝŽŶĂƌŽƵŶĚƚŚĞŝƐƐƵĞ͕ƐŝŶĐĞƉĞŽƉůĞǁŚŽĂƌĞůŝŬĞůǇƚŽƐƵƉƉŽƌƚŝƚŵĂǇŶŽƚďĞĂďůĞƚŽ ďĞŝŶƉƵďůŝĐƚŽƐŝŐŶŝƚ͘/ŬŶŽǁ/ǁĂƐŶΖƚ͘ &ƌŽŵ:ĂŬŽďĞĐŬŝƐŚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϱWD /ƚƌƵůǇĚŽŶ͛ƚƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚŝƐŝƐĞǀĞŶŝŶƉůĂĐĞ ŵĂŬĞƐŶŽƐĞŶƐĞ ǁŚĂƚĂďŽƵƚƉĞŽƉůĞǁŝƚŚϲďĞĚƌŽŽŵŚŽƵƐĞ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϱWD tŚĞŶĐŽůůĞŐĞƐƚƵĚĞŶƚƐƌŝƐŬƚŚĞŝƌůŝĨĞƚŽŐĂƚŚĞƌƐŝŐŶĂƚƵƌĞƐĨŽƌĂƉĞƚŝƚŝŽŶ͕ŝƚŝƐŶŽƚĂƐŝŐŶŽĨƐƵĐĐĞƐƐ͘/ƚƐŚŽǁƐŚŽǁ ŽƵƌŵĂũŽƌĐŽŶĐĞƌŶƐĂŶĚŶĞĞĚƐĂƌĞŶŽƚďĞŝŶŐĂĚĚƌĞƐƐĞĚ͘ &ƌŽŵ:ĂŬŽďĞĐŬŝƐŚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϱWD ƚŚĞƌĞũƵƐƚǀĂĐĂƚŝŶŐϯƌŽŽŵƐ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϱWD ,ŽǁĂƌĞŝŵŵƵŶŽĐŽŵƉƌŽŵŝƐĞĚƉĞŽƉůĞĂďůĞƚŽƉĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞŝƌƌŝŐŚƚĚƵƚǇƚŽƉĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞĐŝǀŝĐƉƌŽĐĞƐƐ͍ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϲWD dŚĂŶŬǇŽƵ<ƌŝƐƚŝŶĨŽƌǇŽƵƌƐƵƉƉŽƌƚŝŶƌĞĐŽŐŶŝǌŝŶŐƚŚĂƚhнϮŝƐƉƌŽďůĞŵĂƚŝĐ͘ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϲWD dŚĂŶŬǇŽƵĨŽƌƌĞĂĚŝŶŐŽƵƌĐŽŵŵĞŶƚƐĂŶĚĞŶŐĂŐŝŶŐƚŚŝƐĚŝĂůŽŐƵĞ͕ƚŚĞƌĞĂƌĞĂůŽƚŽĨƉĞŽƉůĞǁŚŽĂƌĞƉĂƐƐŝŽŶĂƚĞ͘ &ƌŽŵ:ĂŬŽďĞĐŬŝƐŚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϲWD ŵĂŬĞƐůŝƚĞƌĂůŶŽƐĞŶƐĞ &ƌŽŵ<ǇůĞ<ƵŵũŝĂŶƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϲWD tŚǇĐĂŶΖƚƉĂƌŬŝŶŐ͕ƐƉĞĞĚŝŶŐ͕ĂŶĚŶŽŝƐĞďĞĞŶĨŽƌĐĞĚǁŝƚŚŽƵƚƉƵŶŝƐŚŝŶŐƚŚĞƌĞƐƚŽĨƵƐ͍dŚĞƐŵĂůůŶƵŵďĞƌǁŚŽ ĐĂƵƐĞƉƌŽďůĞŵƐƐŚŽƵůĚŶŽƚŝŵƉĂĐƚƚŚĞǀĂƐƚŵĂũŽƌŝƚǇŽĨƵƐǁŚŽĂƌĞũƵƐƚƚƌǇŝŶŐƚŽŝŵƉƌŽǀĞŽƵƌůŝǀĞƐ͘ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϲWD dŽDƌ͘ƵŶŶŝĨĨ͛ƐƉŽůůƉŽŝŶƚ͗>ĂƐƚǇĞĂƌ͛ƐĐŝƚǇƐƵƌǀĞǇĨŽƵŶĚƚŚĂƚĂĨƵůůϵϬйŽĨƌĞƐŝĚĞŶƚƐƐĞĞĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐĂƐĂ ƐĞƌŝŽƵƐŝƐƐƵĞ͘dŚĂƚ͛ƐĂŶĂĐƚƵĂůƉŽůůƚŚĂƚůŽŽŬĞĚĂƚƚŚĞƐĞŝƐƐƵĞƐŝŶĂŵŽƌĞƐƉĞĐŝĨŝĐ͕ĚŝƌĞĐƚǁĂǇ͘^ŽŶŽŶĞĞĚƚŽ ĞǆƚƌĂƉŽůĂƚĞĨƌŽŵǇŽƵƌůĂƐƚĞůĞĐƚŝŽŶ͘dŚĞƌĞ͛ƐĂŵŽƌĞƌĂƚŝŽŶĂůǁĂǇƚŽůŽŽŬĂƚŝƚ͘ &ƌŽŵ/ƐĂŝĂŚĞŶŶŝŶŐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϲWD zĞƐƚŚĂŶŬǇŽƵƐŽŵƵĐŚ<ƌŝƐƚŝŶ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϴWD ĞǆĂĐƚůǇ͕ϰǇĞĂƌŽůĚĚĂƚĂŝƐŶΖƚŐŽŽĚĞŶŽƵŐŚ͘ĂĚĚŝƚŝŽŶĂůůǇ͕ƵŶůĞƐƐhнϮǁĂƐƚŚĞŽŶůǇĐĂŵƉĂŝŐŶŝƐƐƵĞ;ǁŚŝĐŚ/ĚŽƵďƚͿ͕ ƐĂǇŝŶŐϲϵйŽĨƉĞŽƉůĞƐƵƉƉŽƌƚŝƚďĞĐĂƵƐĞƚŚĞǇƐƵƉƉŽƌƚĞĚŚŝŵŝƐŵŝƐůĞĂĚŝŶŐ͘ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϯϴWD ZĞƉĞĂůŝŶŐŝƚŝƐƚŚĞƐƚĂƌƚƚŽĐƌĞĂƚŝŶŐĂďĞƚƚĞƌƉŽůŝĐǇƚŚĂƚŝƐŝŶĐůƵƐŝǀĞĂŶĚĂĐĐĞƉƚĂďůĞ͘dŚĞŵŽƌĞǁĞǁĂŝƚ͕ƚŚĞŵŽƌĞ ƉĞŽƉůĞĂƌĞŵŝƐƚƌĞĂƚĞĚ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϯϵWD /ŬŶŽǁŵĂŶǇƐƚƵĚĞŶƚƐǁŚŽŚĂǀĞďĞĞŶĞǆƉůŽŝƚĞĚďǇůĂŶĚůŽƌĚƐĚƵĞƚŽhнϮ͘KŶĞŚŽŵĞŚĂĚďůĂĐŬŵŽůĚ͕ĨŽƌ ĞǆĂŵƉůĞĂŶĚƚŚĞůĂŶĚůŽƌĚƌĞĨƵƐĞĚƚŽĨŝǆƚŚĞŝƐƐƵĞďĞĐĂƵƐĞƚŚĞƌĞǁĞƌĞϰƚĞŶĂŶƚƐ͘ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϭWD ǁŚĞŶǇŽƵĂůůƌĞƉƌĞƐĞŶƚĂŶĚƉƌĞƐŝĚĞŽǀĞƌĂƚŽǁŶǁŝƚŚĂůĂƌŐĞƉƵďůŝĐƵŶŝǀĞƌƐŝƚǇǁŚĞƌĞƚŚĞƐƚƵĚĞŶƚƐ;ĂŶĚƚŚĞƌĞĨŽƌĞ ƌĞƐŝĚĞŶƚƐŝŶ&ŽƌƚŽůůŝŶƐͿĂƌĞĐŽŶƐŝƐƚĞŶƚůǇĐŚĂŶŐŝŶŐŽƵƚ͕ƵƉƚŽĚĂƚĞƉŽůůŝŶŐĚĂƚĂŝƐŵŽƌĞƚŚĂŶŶĞĐĞƐƐĂƌǇ dŽĂƌŝŶ͕ǇŽƵŵĞŶƚŝŽŶĞĚŶŽƚŚĂǀŝŶŐĂŶǇƌĞŶƚĂůƉƌŽƉĞƌƚŝĞƐŝŶ&ŽƌƚŽůůŝŶƐ͘ŽǇŽƵŚĂǀĞƌĞŶƚĂůƉƌŽƉĞƌƚŝĞƐ ĞůƐĞǁŚĞƌĞ͍ŽĞƐǇŽƵƌƌŽůĞĂƐĂůĂŶĚůŽƌĚĐƌĞĂƚĞďŝĂƐŝŶŚŽǁǇŽƵĂƉƉƌŽĂĐŚƚŚŝƐŝƐƐƵĞ͍ &ƌŽŵũŽƐĞƉŚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϭWD tŚǇǁŽƵůĚƚŚĞĐŝƚǇĞǀĞŶŚĂǀĞƐŽŵĞƚŚŝŶŐůŝŬĞhнϮŝĨƚŚĞǇŚĂǀĞŶŽĚĂƚĂ͕ĂĐĐĞƐƐ͕ŽƌŬŶŽǁůĞĚŐĞŽĨǁŚŽŝƐŽǁŶŝŶŐ ĂŶĚůŝǀŝŶŐŝŶŚŽƵƐĞƐ &ƌŽŵ^ĂŵtŚŝƚĂŬĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϭWD hнϮŝƐĂŶƵŶũƵƐƚƉŽůŝĐǇ͘tĞĐĂŶŶŽƚĂůůŽǁůĂŶĚůŽƌĚƐƚŽǁĂůŬĂůůŽǀĞƌƚŚĞƉĞŽƉůĞŽĨ&ŽƌƚŽůůŝŶƐũƵƐƚƚŽƚƵƌŶĂƌŽƵŶĚ ĂŶĚƐĂǇΗďƵƚhнϮΗ͘͘͘ĂƐŝĐĚŝŐŶŝƚǇĂŶĚƋƵĂůŝƚǇŽĨůŝĨĞƐŚŽƵůĚďĞŽƵƌŶƵŵďĞƌŽŶĞƉƌŝŽƌŝƚǇ͕ŶŽƚůŽǇĂůƚǇƚŽĂŶ ĂƌďŝƚƌĂƌǇĂŶĚŽƵƚĚĂƚĞĚƉŽůŝĐǇ &ƌŽŵŚƌŝƐƚŝĂŶǇŬƐŽŶ;ŚĞͬŚŝŵͿƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϭWD &ŽƌĞǀĞƌǇŽŶĞŽŶƚŚĞƉĂŶĞů͕ƚŚĂŶŬǇŽƵĨŽƌƚĂŬŝŶŐƚŚĞƚŝŵĞƚŽůŝƐƚĞŶ͘,ŽƉĞĨƵůƚŚĞƌĞĐĂŶďĞĐŽŶƚŝŶƵĞĚƉƌŽŐƌĞƐƐŽŶ ƚŚŝƐƚŽƉŝĐ͘ƵƌŝŽƵƐƚŽŚĞĂƌƚŚĞƉĂŶĞů͛ƐƚŚŽƵŐŚƚƐŽŶƌŝŐŚƚͲƐŝǌĞͲŚŽƵƐŝŶŐ;ƚŚĞƐĂŵĞŶƵŵďĞƌŽĨƉĞŽƉůĞĂƐƌŽŽŵƐŝŶ ƚŚĞŚŽŵĞͿĂŶĚǁŚĞƚŚĞƌƚŚĞĐŝƚǇŚĂƐƚŚĞŝŶĨƌĂƐƚƌƵĐƚƵƌĞĨŽƌĞĂƐŝůǇĐĂƚĞŐŽƌŝǌŝŶŐĐŽŵƉůŝĂŶƚǀƐ͘ŶŽŶͲĐŽŵƉůŝĂŶƚ ďĞĚƌŽŽŵƐŽŶĂǁŝĚĞƐĐĂůĞ͍tŚĂƚĐŽŶĚŝƚŝŽŶƐǁŽƵůĚŶĞĞĚƚŽďĞŝŶƉůĂĐĞŝŶŽƌĚĞƌĨŽƌĂƉŝůŽƚƉƌŽŐƌĂŵůŝŬĞƚŚŝƐƚŽďĞ ĂƉƉƌŽǀĞĚďǇŝƚǇŽƵŶĐŝů͍ &ƌŽŵ>ŝƐĂƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϮWD DŝŶŶĞĂƉŽůŝƐŚĂƐĂŵƵůƚŝƚŝĞƌƌĞŐŝƐƚƌĂƚŝŽŶƐǇƐƚĞŵͲƉůĞĂƐĞŐŽŽŐůĞŝƚ &ƌŽŵũŽƐĞƉŚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϯWD ƵƚŝĨƚŚĞĐŝƚǇŚĂƐŶŽĚĂƚĂŽŶŚŽŵĞŽǁŶĞƌƐǁŚǇŝƐhнϮĂƚŚŝŶŐŝŶƚŚĞĨŝƌƐƚƉůĂĐĞ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϯWD dŚĂŶŬǇŽƵŚƌŝƐƚŝĂŶ͊/ĂŐƌĞĞ͕ǁĞĂƌĞĂůůŽŶƚŚĞƐĂŵĞƚĞĂŵŚĞƌĞͲǁĞǁĂŶƚƚŽƐĞĞĂĨĨŽƌĚĂďůĞ͕ĂĐĐĞƐƐŝďůĞ͕ĂŶĚ ƐƵƐƚĂŝŶĂďůĞŚŽƵƐŝŶŐĨŽƌƌĞƐŝĚĞŶƚƐŽĨ&ŽƌƚŽůůŝŶƐĂŶĚƚŚĞƉĞŽƉůĞǁĞůŝǀĞǁŝƚŚĂŶĚĐĂƌĞĂďŽƵƚ͘tĞĂƌĞĂƐŬŝŶŐĨŽƌ ĂĐƚŝŽŶŽŶďĞŚĂůĨŽĨƚŚŽƐĞǁŝƚŚƚŚĞƉŽǁĞƌƚŽůŽŽŬĂƚƌĞĂů͕ƚŝŵĞůǇƐŽůƵƚŝŽŶƐĨŽƌƚŚĞŚŽƵƐŝŶŐĐƌŝƐŝƐƚŚĂƚǁŽŶ͛ƚũƵƐƚďĞ ĂŐŽŽĚŝĚĞĂďƵƚĂƌĞĂůŝƚǇŝŶƚŚĞŶĞĂƌĨƵƚƵƌĞ͘ &ƌŽŵ:ĞƐƐĞ^ƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϰWD dŚĞƐĞǇŽƵŶŐĞƌŐĞŶĞƌĂƚŝŽŶƐĂƌĞĚŝĨĨĞƌĞŶƚ͘dŚĞǇ͛ƌĞŐĞƚƚŝŶŐŵĂƌƌŝĞĚůĞƐƐ͕ŚĂǀŝŶŐŬŝĚƐůĞƐƐ͕ŽǁŶŝŶŐŚŽŵĞƐůĞƐƐ͘dŚĞ ƚŚƌĞĞƌŽŽŵŵĂƚĞƐƚŚĞǇŚĂǀĞZƚŚĞŝƌĨĂŵŝůǇ͊͊ &ƌŽŵŵĞůǇƌƵǌƌƌĂǌŽůĂƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϰWD tŽƌŬŝŶŐĐůĂƐƐĂŶĚůŽǁĞƌŝŶĐŽŵĞƉĞŽƉůĞĂƌĞĚŝƐƉƌŽƉŽƌƚŝŽŶĂƚĞůǇůĂĐŬ͕/ŶĚŝŐĞŶŽƵƐ͕ĂŶĚWĞŽƉůĞŽĨŽůŽƌ͘^ŽŝŶ ƚĞƌŵƐŽĨŚŽƵƐŝŶŐďĞĞƋƵŝƚĂďůĞĨŽƌƌĞƐŝĚĞŶƚƐŽĨ&ŽƌƚŽůůŝŶƐƚŚĞƐĞŝĚĞŶƚŝƚŝĞƐŵƵƐƚďĞĂĐŬŶŽǁůĞĚŐĞĚ͘KŶƚŽƉŽĨƚŚĂƚ ƚŚĞƌĞĂƌĞŵĂŶǇůŽǁŝŶĐŽŵĞƐƚƵĚĞŶƚƐǁŚŽĂƌĞƐƚƌƵŐŐůŝŶŐƚŽƉĂǇĨŽƌĨŽŽĚ͕ďŝůůƐ͕ƐĐŚŽŽů͕ĞƚĐ͘ĂŶĚŚĂǀĞƚŽƉĂǇŵŽƌĞ ŵŽŶĞǇĨŽƌƌŽŽŵƐƚŚĂƚƚŚĞǇůĞŐĂůůǇĐĂŶŶŽƚĨŝůů͘dŚĞƌĞĂƌĞƐŽŵĂŶǇƐƚƵĚĞŶƚƐǁŚŽĂƌĞŚŽŵĞůĞƐƐĂŶĚĂƌĞĨŽƌĐĞĚƚŽ ƐůĞĞƉŝŶƚŚĞŝƌĐĂƌƐŽƌĂƚĨƌŝĞŶĚ͛ƐŚŽŵĞƐ^ŽŝƚŝƐŶŽƚŵƵĐŚƚŽĂƐŬƚŚĂƚŝĨƚŚĞƌĞŝƐǆĂŵŽƵŶƚŽĨƌŽŽŵƐƚŚĞŶǆĂŵŽƵŶƚ ŽĨƉĞŽƉůĞƐŚŽƵůĚďĞĂůůŽǁĞĚƚŽƌĞŶƚƚŚĞƉƌŽƉĞƌƚǇ͘WĞŽƉůĞĂƌĞĂƐŬŝŶŐĨŽƌƚŚĞďĂƌĞŵŝŶŝŵƵŵƐŽ/ǁŽƵůĚďĞ ŝŶƚĞƌĞƐƚĞĚŝŶŚĞĂƌŝŶŐĨƌŽŵƉĂŶĞůŝƐƚƐŚŽǁƚŚĞƐĞĚĞĐŝƐŝŽŶƐĂƌĞũƵƐƚŝĨŝĂďůĞƚŽƉĞŽƉůĞůŝǀŝŶŐŝŶƚŚĞƐĞĐŽŶĚŝƚŝŽŶƐŽĨ ^hZs/s>͘dŚĞǇĂƌĞŶŽƚůŝǀŝŶŐĂŐŽŽĚůŝĨĞƌĂƚŚĞƌƚƌǇŝŶŐƚŽƐƵƌǀŝǀĞĂŶĚůŝǀĞĚĂǇƚŽĚĂǇ͘ &ƌŽŵŐƌĂĐĞĐƵƌƚŝƐƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϰWD ΔΔΔ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϰWD zŽƵŶŐĂĚƵůƚƐŽĨƚĞŶŵŽǀĞŝŶďĞĨŽƌĞŵĂƌƌŝĂŐĞĚƵĞƚŽŵŽŶĞǇŝƐƐƵĞƐ͘dŚĂŶŬǇŽƵĨŽƌĂĐŬŶŽǁůĞĚŐŝŶŐƚŚĞĐŚĂŶŐŝŶŐ ůĂŶĚƐĐĂƉĞŽĨĨĂŵŝůŝĞƐ &ƌŽŵ^ĂŵtŚŝƚĂŬĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϰWD ΔΔΔ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϰWD ΔΔ &ƌŽŵDĂƌŝĞƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϱWD ΔΔΔ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϱWD dŚĞĚĞĨŝŶŝƚŝŽŶŽĨĨĂŵŝůǇŝƐƉĂƌƚŽĨƚŚĞƉƌŽďůĞŵŚĞƌĞĂŶĚƐŚŽǁƐǁŚǇƚŚŝƐƉŽůŝĐǇŝƐĚŝƐĐƌŝŵŝŶĂƚŽƌǇ͘tŚŽŝƐƚŽƐĂǇ ƚŚĂƚŵǇƌŽŽŵŵĂƚĞƐĂƌĞŶΖƚƉĞŽƉůĞ/ĐŽŶƐŝĚĞƌĨĂŵŝůǇ͍tŚĂƚĂďŽƵƚƉĞŽƉůĞǁŝƚŚĚŝƐĂďŝůŝƚŝĞƐǁŝƚŚĂůŝǀĞŝŶĐĂƌĞƚĂŬĞƌ͍ ŽĞƐƚŚĂƚĐŽƵŶƚĂŐĂŝŶƐƚhнϮ͍,ŽǁĚŝĚƚŚĞĐŝƚǇŚĂŶĚůĞƚŚŝƐďĞĨŽƌĞŐĂǇŵĂƌƌŝĂŐĞǁĂƐůĞŐĂůŝǌĞĚ͍tŚĂƚĂďŽƵƚůŽŶŐ ƚĞƌŵŽƌĐŽŵŵŽŶͲůĂǁƉĂƌƚŶĞƌƐ͍ŽƚŚĞǇĐŽƵŶƚĂƐΗĨĂŵŝůǇΗ͍ &ƌŽŵĂƌŝŶƚƚĞďĞƌƌǇƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϱWD ĂůĞǇ͕/ĚŽŶŽƚŽǁŶĂŶǇƌĞŶƚĂůƉƌŽƉĞƌƚŝĞƐĂŶǇǁŚĞƌĞ͘dŚĂŶŬǇŽƵĨŽƌĂƐŬŝŶŐ͘ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϱWD hнϮǁĂƐƐƚĂƌƚĞĚĂƐĂƌĂĐŝƐƚ͕ĂŶƚŝͲŝŵŵŝŐƌĂƚŝŽŶƉŽůŝĐǇ͘tĞĐĂŶŶŽƚƉƌŝĚĞŽƵƌƐĞůǀĞƐŽŶ͞ĞƋƵŝƚǇ͟ŝĨƚŚŝƐƉŽůŝĐǇƌĞŵĂŝŶƐ ŝŶƉůĂĐĞ͘ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϳWD dŚĞĐŝƚǇŚĂǀŝŶŐĂĨĨŽƌĚĂďůĞͬĞƋƵŝƚĂďůĞŚŽƵƐŝŶŐĂƐĂŐŽĂůǁŚŝůĞŵĂŝŶƚĂŝŶŝŶŐhнϮŝƐŶŽƚĐŽŶŐƌƵĞŶƚ͘dŚĞĐŝƚǇΖƐƐƵƉƉŽƌƚ ŽĨĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐĨĞĞůƐƉĞƌĨŽƌŵĂƚŝǀĞǁŚŝůĞhнϮŝƐƐƚŝůůŝŶƉůĂĐĞ͘ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϳWD tŝůůƚŚĞƌĞďĞƌĞƐƉŽŶƐĞƐƚŽƚŚĞƋƵĞƐƚŝŽŶƐƐƵďŵŝƚƚĞĚǀŝĂYΘ͍tŽƵůĚƌĞĂůůǇůŝŬĞƚŽƐĞĞǁŚĂƚǀĞƌďĂůĐŽŵŵŝƚŵĞŶƚƐ ďŽĂƌĚŵĞŵďĞƌƐĂƌĞǁŝůůŝŶŐƚŽŵĂŬĞŽŶƐŽůǀŝŶŐƚŚĞĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐĐƌŝƐŝƐ͍ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϴWD ƐĂĐŽŶƐƚŝƚƵĞŶƚ͕/ǁĂŶƚƚŽƉƌĞƐƐƵƌĞĂĐƚŝŽŶƚŽƌĞƉĞĂů;ŝĚĞĂůůǇͿŽƌĞǆƉĂŶĚhнϮ͘^hŚĂƐĂŶĞƉŝĚĞŵŝĐŽĨĨŽŽĚ ŝŶƐĞĐƵƌŝƚǇ͕ƚŚĞƐĞŝƐƐƵĞƐŚĂǀĞƌĞĂůĂŶĚƐŝŐŶŝĨŝĐĂŶƚŚƵŵĂŶĞĨĨĞĐƚƐ͘dŚĂƚƐĂŝĚ͕ŝƚŝƐĨĂƌďĞǇŽŶĚŽŶůǇĂĐŽůůĞŐĞŝƐƐƵĞ ĂŶĚĞĨĨĞĐƚƐŵƵĐŚŵŽƌĞŽĨƚŚĞĐŽŵŵƵŶŝƚǇ &ƌŽŵŚƌŝƐƚŝĂŶǇŬƐŽŶ;ŚĞͬŚŝŵͿƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϰϴWD dŚĞƌĞĂƌĞĐŽŶĐĞƌŶƐĂƌŽƵŶĚƚŚĞĞĨĨŝĐĂĐǇĂŶĚĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨĂƉŚǇƐŝĐĂůͲƐŝŐŶĂƚƵƌĞďĂůůŽƚŝŶŝƚŝĂƚŝǀĞŝŶƚŚĞŵŝĚĚůĞŽĨ ĂƉĂŶĚĞŵŝĐ͘tŚĂƚĐŽŶĚŝƚŝŽŶƐǁŽƵůĚŶĞĞĚƚŽďĞŝŶƉůĂĐĞĨŽƌƚŚĞŝƚǇŽƵŶĐŝůƚŽƉƵƚDнϯŽŶƚŚĞƉƌŝůďĂůůŽƚ͍/Ɛ ƚŚĞŽƵŶĐŝůŝŶĂŐƌĞĞŵĞŶƚƚŚĂƚƚŚĞŵŽƐƚĚĞŵŽĐƌĂƚŝĐĂƉƉƌŽĂĐŚǁŽƵůĚďĞƚŽĂůůŽǁƚŚĞǀŽƚĞƌƐŽĨ&ŽƌƚŽůůŝŶƐƚŽ ĚĞĐŝĚĞ͍tĞĂƌĞŚŽƉĞĨƵůƚŚĂƚǇŽƵǁŝůůƵŶĚĞƌƐƚĂŶĚŽƵƌĐŽŶĐĞƌŶƐ͘/ŶƚŚĞŝŶƚĞƌĞƐƚŽĨĐŽŵƉůǇŝŶŐǁŝƚŚŽƵŶƚǇŚĞĂůƚŚ ŐƵŝĚĞůŝŶĞƐ͕ǁĞĂƌĞĐŚŽŽƐŝŶŐƚŽŶŽƚĂƐŬĨŽƌƉŚǇƐŝĐĂůƐŝŐŶĂƚƵƌĞƐ͕ďƵƚǁĞŶĞĞĚŽƵŶĐŝů͛ƐƐƵƉƉŽƌƚŝŶŽƌĚĞƌƚŽŚĞĂƌƚŚĞ ǀŽŝĐĞƐŽĨ&ŽƌƚŽůůŝŶƐ͘ &ƌŽŵEŽĂŚ^ĐŚŝŶĚůĞƌƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϵWD WŚǇƐŝĐĂůƉĞƚŝƚŝŽŶĐŝƌĐƵůĂƚŝŽŶŝƐĐŽŶƚƌĂƌǇƚŽƐŽĐŝĂůĚŝƐƚĂŶĐŝŶŐ͘ sŽƚĞƚŽƉƵƚƚŚŝƐŽŶƚŚĞďĂůůŽƚĂŶĚůĞƚƉĞŽƉůĞƚŚĞƉĞŽƉůĞĚĞĐŝĚĞǁŝƚŚŽƵƚƉŚǇƐŝĐĂůƐŝŐŶĂƚƵƌĞĐŽůůĞĐƚŝŽŶ͘tĞŶĞĞĚƚŽ ďĞĂďůĞƚŽŝŵƉƌŽǀĞŽƵƌŶĞŝŐŚďŽƌŚŽŽĚƐĂŶĚĞŶĨŽƌĐĞŵŝƐďĞŚĂǀŝŽƌǁŝƚŚŽƵƚƉƵŶŝƐŚŝŶŐƉĞŽƉůĞǁŚŽĂƌĞũƵƐƚƚƌǇŝŶŐƚŽ ůŝǀĞ͘ &ƌŽŵ,ĂŶŶĂŚdĂǇůŽƌƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϵWD ,ŝƚŚĞƌĞŵǇŶĂŵĞŝƐ,ĂŶŶĂŚdĂǇůŽƌĂŶĚ/ĂŵƚŚĞ^^hWƌĞƐŝĚĞŶƚƚŚŝƐǇĞĂƌ͘tĞĂƌĞĐƵƌƌĞŶƚůǇǁŽƌŬŝŶŐŽŶĂďĂůůŽƚ ƉĞƚŝƚŝŽŶƚŽĐŚĂŶŐĞzKhнϮƚŽĂůůŽǁĂŶĂĚĚŝƚŝŽŶƉĞƌƐŽŶŝŶĂƉůĂĐĞŽĨƌĞƐŝĚĞŶĐĞ͘Ks/ͲϭϵŚĂƐĐĂƵƐĞĚĞǆƚĞŶƵĂƚŝŶŐ ĐŝƌĐƵŵƐƚĂŶĐĞƐĨŽƌŽƵƌĨĞůůŽǁƐƚƵĚĞŶƚƐĂŶĚĐŽŵŵƵŶŝƚǇŵĞŵďĞƌƐƚŽďĞƐƚĂŶĚŝŶŐŽƵƚŝŶƉĞƌƐŽŶĂŶĚŐĂƚŚĞƌŝŶŐ ƐŝŐŶĂƚƵƌĞƐŝŶĐƌĞĂƐŝŶŐĞǆƉŽƐƵƌĞƚŽKs/Ͳϭϵ͘dŚĞƉĂŶĚĞŵŝĐŚĂƐůŝŵŝƚĞĚŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌƚŚĞƉƵďůŝĐƚŽ ƉĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞƉƌŽĐĞƐƐƚŽŵĂŬĞĐŚĂŶŐĞŝŶ&ŽƌƚŽůůŝŶƐ͘tĞďĞůŝĞǀĞƚŚĂƚƚŚĞƌĞƐŚŽƵůĚďĞĂĐĐŽŵĚĂƚŝŽŶƐŵĂĚĞ ĐŽŶƐŝĚĞƌŝŶŐƚŚĞƐĞůŝŵŝƚĂƚŝŽŶƐ͘ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϰϵWD tŝƚŚĂůůĚŽƌĞƐƉĞĐƚ͕ƚŚŽƐĞƉƵďůŝĐĚĞůŝďĞƌĂƚŝŽŶĨŽůŬƐŚĂǀĞŚĂĚ͞ĐŽŶǀĞƌƐĂƚŝŽŶƐ͟ĨŽƌǇĞĂƌƐ͕ĞǀĞŶĚĞĐĂĚĞƐ͘,ŽǁĚŽ ǁĞŬŶŽǁƚŚĞƌĞŝƐĂĐŽŵŵŝƚŵĞŶƚƚŽĂƚŝŵĞůǇƌĞƐŽůƵƚŝŽŶĂŶĚŶŽƚũƵƐƚĂŶŝĚĞĂĨŽƌĨĂƌĚŽǁŶƚŚĞƌŽĂĚ͍ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϬWD dŚŝƐǁŽƵůĚďĞĂŐŽŽĚƉŽůŝĐǇĚĞĐŝƐŝŽŶ &ƌŽŵ:ĞŶŶŝĨĞƌƌĂǇƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϬWD /ǁŽƵůĚůŝŬĞƚŽƉŽŝŶƚŽƵƚƚŚĂƚhнϮĚŽĞƐŶŽƚũƵƐƚĂƉƉůǇƚŽƌĞŶƚĂůƐ͘/ƌĞŵĞŵďĞƌƌĞĂĚŝŶŐŝŶƚŚĞŽƌŽŶĂƌĞƉŽƌƚƚŚĂƚ ŵĂŶǇŽǁŶĞƌŽĐĐƵƉŝĞĚŚŽŵĞƐĂƌĞĂůƐŽĂĨĨĞĐƚĞĚ͘ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϬWD ůŽƚŽĨƚŚĞƐĞƋƵĂůŝƚǇŽĨůŝĨĞŝƐƐƵĞƐ;ŝŶĐůƵĚŝŶŐŚĞĂůƚŚĂŶĚƐĂĨĞƚǇͿĐĂŶďĞĐŚĂůŬĞĚƵƉƚŽŚŽůĚŝŶŐůĂŶĚůŽƌĚƐŵŽƌĞ ĂĐĐŽƵŶƚĂďůĞĨŽƌŚŽǁƚŚĞŝƌƚĞŶĂŶƚƐůŝǀĞĂŶĚͬŽƌƚƌĞĂƚĞĚ͘tŚǇĐĂŶΖƚǁĞŚŽůĚƚŚĞŽǁŶŝŶŐĐůĂƐƐĂĐĐŽƵŶƚĂďůĞĨŽƌƚŚĞƐĞ ĂĐƚŝŽŶƐƌĂƚŚĞƌƚŚĂŶƚŽĐŽŶƚŝŶƵĞůĞƚƚŝŶŐƚŚĞŵŵŝƐƚƌĞĂƚƚŚĞǁŽƌŬŝŶŐĐůĂƐƐ͍ &ƌŽŵ:ĞŶŶŝĨĞƌƌĂǇƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϭWD ŶĚŝƚǁĂƐƚŚĞ>hƚŚĂƚĐĂůůĞĚŽŶ/ŽǁĂůĞŐŝƐůĂƚŽƌƐƚŽƉĂƐƐƚŚĞĨŽůůŽǁŝŶŐ͗ĐŝƚǇƐŚĂůůŶŽƚ͕ĂĨƚĞƌ:ĂŶƵĂƌǇϭ͕ϮϬϭϴ͕ ĂĚŽƉƚŽƌĞŶĨŽƌĐĞĂŶǇƌĞŐƵůĂƚŝŽŶŽƌƌĞƐƚƌŝĐƚŝŽŶƌĞůĂƚĞĚƚŽƚŚĞŽĐĐƵƉĂŶĐǇŽĨƌĞƐŝĚĞŶƚŝĂůƌĞŶƚĂůƉƌŽƉĞƌƚǇƚŚĂƚŝƐ ďĂƐĞĚƵƉŽŶƚŚĞĞǆŝƐƚĞŶĐĞŽĨĨĂŵŝůŝĂůŽƌŶŽŶĨĂŵŝůŝĂůƌĞůĂƚŝŽŶƐŚŝƉƐďĞƚǁĞĞŶƚŚĞŽĐĐƵƉĂŶƚƐŽĨƐƵĐŚƌĞŶƚĂů ƉƌŽƉĞƌƚǇ͘ &ƌŽŵũŽƐĞƉŚƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϮWD zĞĂŚ/ƚƌƵůǇĚŽŶΖƚƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚŝƐŝƐŶΖƚũƵƐƚĂŶŝƐƐƵĞďĞƚǁĞĞŶƚĞŶĂŶƚĂŶĚŽǁŶĞƌƐ͘ŝƚǇΖƐũŽďƐŚŽƵůĚďĞ ƌĞŐƵůĂƚŝŶŐƌĞŶƚŝŶŐĂŶĚŽǁŶĞƌƐŚŝƉůĂǁƐ͕ŚŽǁŵĂŶǇƉĞŽƉůĞůŝǀŝŶŐŝŶƚŚĞŚŽƵƐĞŝƐƚŚĞŽǁŶĞƌƐƉƌŽďůĞŵ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϮWD ,ŽǁǁŽƵůĚƚŚĞƌĞďĞĂǁĂǇƚŽƐƵďŵŝƚĐŽŵƉůĂŝŶƚƐĂŶŽŶǇŵŽƵƐůǇŝĨǇŽƵ͛ƌĞŵĂŬŝŶŐĂĐŽŵƉůĂŝŶƚĂďŽƵƚǇŽƵƌĐƵƌƌĞŶƚ ƌĞƐŝĚĞŶĐǇ͍ &ƌŽŵŵĞůǇƌƵǌƌƌĂǌŽůĂƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϮWD ŐĂŝŶǁŚĂƚŝƐĐŽŶƐŝĚĞƌĞĚĂĨĨŽƌĚĂďůĞ͍tŚŽŝƐĂƚƚŚĞƚĂďůĞĚƵƌŝŶŐƚŚĞƐĞĚĞĐŝƐŝŽŶŵĂŬŝŶŐĐŽŶǀĞƌƐĂƚŝŽŶƐ͍tŚŽŝƐ ŵŝƐƐŝŶŐ͍ƌĞƚŚĞǇďĞŝŶŐůŝƐƚĞŶĞĚƚŽ͍ĞĐĂƵƐĞĂĨĨŽƌĚĂďŝůŝƚǇŵƵƐƚĞŶĐŽŵƉĂƐƐĞƋƵŝƚǇ͘ &ƌŽŵ/ƐĂŝĂŚĞŶŶŝŶŐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϯWD dŚĂŶŬǇŽƵƐŽŵƵĐŚŵŝůǇ͊zŽƵĂƌĞƚƌƵůǇĂŶĂůůǇŽĨƚŚĞƐƚƵĚĞŶƚƐ &ƌŽŵĨŝǌĞƌƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϯWD /ŶƚĞƌĞƐƚŝŶŐƚŽƐĞĞƚŚĞĐŽŵŵĞŶƚƐŽŶƚŚŝƐƉŽůůŝŶ&ŽƌƚŽůůŝŶƐZ/dĂďŽƵƚƚŚŝƐŝƐƐƵĞ͘͘͘͘ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƌĞĚĚŝƚ͘ĐŽŵͬƌͬ&ŽƌƚŽůůŝŶƐͬĐŽŵŵĞŶƚƐͬŬϰǌƵϳŚͬƉŽůůͺŚŽǁͺĚŽͺǇŽƵͺĨĞĞůͺĂďŽƵƚͺƚŚĞͺĐŝƚǇƐͺƵͺϮͺƉŽůŝĐǇͬ &ƌŽŵŵŝůǇ'ŽƌŐŽůƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϰWD ĐŝƚǇůĞĂĚĞƌƐΛĨĐŐŽǀ͘ĐŽŵ ĞŐŽƌŐŽůΛĨĐŐŽǀ͘ĐŽŵ &ƌŽŵ<ƌŝƐƚŝŶ^ƚĞƉŚĞŶƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϱWD ŬƐƚĞƉŚĞŶƐΛĨĐŐŽǀ͘ĐŽŵ &ƌŽŵZŽƐƐƵŶŶŝĨĨƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϱWD ƌĐƵŶŶŝĨĨΛĨĐŐŽǀ͘ĐŽŵ &ƌŽŵŚƌŝƐƚŝĂŶǇŬƐŽŶ;ŚĞͬŚŝŵͿƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϱWD dŚĂŶŬǇŽƵĂŐĂŝŶ͕ƉĂŶĞůŝƐƚƐ͕ĨŽƌůŝƐƚĞŶŝŶŐƚŽƵƐ͘tĞǁŝůůĐŽŶƚŝŶƵĞƚŽĂĚǀŽĐĂƚĞĂŶĚŚŽƉĞƚŽĐŽůůĂďŽƌĂƚŝǀĞůǇďƵŝůĚĂ ƐŽůƵƚŝŽŶǁŝƚŚǇŽƵ͘ &ƌŽŵŵŝůǇ'ŽƌŐŽůƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϱWD dŚĞŝƚǇΖƐƉƵďůŝĐĞŶŐĂŐĞŵĞŶƚƐĞƌŝĞƐĨŽƌŚŽƵƐŝŶŐĂĨĨŽƌĚĂďŝůŝƚǇ͗,ŽŵĞϮ,ĞĂůƚŚ ŚƚƚƉƐ͗ͬͬŽƵƌĐŝƚǇ͘ĨĐŐŽǀ͘ĐŽŵͬŚŽŵĞϮŚĞĂůƚŚ &ƌŽŵĂůĞǇsĂůĚĞǌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϱWD dŚĂŶŬǇŽƵƚŽƚŚĞƉĂŶĞůŝƐƚƐĨŽƌůŝƐƚĞŶŝŶŐƚŽƵƐ͕ǁĞǁŽƵůĚƌĞĂůůǇůŝŬĞƚŽŚĞĂƌŵŽƌĞĨƌŽŵǇŽƵƌĞŐĂƌĚŝŶŐƚŚŝƐŝƐƐƵĞ ĂŶĚƐŽůƵƚŝŽŶƐǇŽƵƉƌŽƉŽƐĞ͘ &ƌŽŵŚƌĞƚEŽƚƚŝŶŐŚĂŵƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϱWD ^hĂŶĚ^^hĐĂŶĂůƐŽďĞŚĞůƉĨƵů͘/ĨǁĞĂƌĞĐŚĂŶŐŝŶŐƉŽůŝĐǇƚŚĂƚĞĨĨĞĐƚƐĐŽůůĞŐĞƐƚƵĚĞŶƚƐ͕ƚŚĞƐƚƵĚĞŶƚƐƐŚŽƵůĚ ďĞĂĨƵŶĚĂŵĞŶƚĂůƉĂƌƚŽĨƚŚĂƚĐŽŶǀĞƌƐĂƚŝŽŶ͘ƐĂ^hƐƚƵĚĞŶƚĂŶĚĂĐŽŶƐƚŝƚƵĞŶƚ/ůŽŽŬĨŽƌǁĂƌĚƚŽĐŽŶƚŝŶƵŝŶŐ ƚŚĞƐĞĐŽŶǀĞƌƐĂƚŝŽŶƐ͘ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϲWD dŚĂŶŬǇŽƵĨŽƌŚĞĂƌŝŶŐƵƐ͊/ŚŽƉĞƚŚŝƐŝƐďĞŐŝŶŶŝŶŐŽĨŐŽŽĚĨĂŝƚŚĐŽůůĂďŽƌĂƚŝŶŐĂŶĚǁĞĂƉƉƌĞĐŝĂƚĞǇŽƵŽƉĞŶŝŶŐĂ ƐƉĂĐĞƚŽŚĞĂƌĐŽŵŵƵŶŝƚǇŝŶƉƵƚ͊ &ƌŽŵ^ŽƉŚŝĂ^ŚĞƉƉƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϲWD dŚĂŶŬǇŽƵĂůůƐŽŵƵĐŚĨŽƌǇŽƵƌƚŝŵĞĂŶĚĂƚƚĞŶƚŝŽŶ͕ǁĞůŽŽŬĨŽƌǁĂƌĚƚŽǁŽƌŬŝŶŐĐŽůůĂďŽƌĂƚŝǀĞůǇ͊ &ƌŽŵ^ĂŵtŚŝƚĂŬĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϲWD dŚĂŶŬǇŽƵĂůůĨŽƌǇŽƵƌƚŝŵĞĂŶĚĞŶĞƌŐǇƚŽŶŝŐŚƚ͊ &ƌŽŵǀĂDĐĂůůƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϲWD dŚĂŶŬǇŽƵƐŽŵƵĐŚĨŽƌǇŽƵƌƚŝŵĞ͊tĞĂƉƉƌĞĐŝĂƚĞŝƚĂůŽƚ͊ &ƌŽŵ:ĂƐƉĞƌ^ůŽƐƐƚŽůůWĂŶĞůŝƐƚƐ͗Ϭϴ͗ϱϳWD ŶĚŽŶŐƌĂƚƐŽŶĐŽƵŶƚǇĐŽŵŵŝƐƐŝŽŶĞƌĚϮΛ<ƌŝƐƚŝŶ^ƚĞƉŚĞŶƐ͊ dŚĂŶŬǇŽƵĨŽƌǇŽƵƌƚŝŵĞŽŶƚŚŝƐďŽĂƌĚ &ƌŽŵĨŝǌĞƌƚŽǀĞƌǇŽŶĞ͗Ϭϴ͗ϱϵWD /ŶƚĞƌĞƐƚŝŶŐƚŽƐĞĞƚŚĞĐŽŵŵĞŶƚƐŽŶƚŚŝƐƉŽůůŝŶ&ŽƌƚŽůůŝŶƐZ/dĂďŽƵƚƚŚŝƐŝƐƐƵĞ͘͘͘͘ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ƌĞĚĚŝƚ͘ĐŽŵͬƌͬ&ŽƌƚŽůůŝŶƐͬĐŽŵŵĞŶƚƐͬŬϰǌƵϳŚͬƉŽůůͺŚŽǁͺĚŽͺǇŽƵͺĨĞĞůͺĂďŽƵƚͺƚŚĞͺĐŝƚǇƐͺƵͺϮͺƉŽůŝĐǇͬ YΘ ŵĞůǇƌƵǌƌƌĂǌŽůĂϬϴ͗ϯϯWD /ŶƌĞŐĂƌĚƚŽƚŚĞŶĞŝŐŚďŽƌŚŽŽĚƋƵĂůŝƚǇĂƐƉĞĐƚŝƐďĂƐĞĚŽŶǁŚŝƚĞŶĞƐƐĂŶĚǁĞĂůƚŚ͘dŚŝƐŚŽƵƐŝŶŐŝƐƐƵĞŝŶǀŽůĐĞƐ ĂƐƉĞĐƚƐŽĨƌĂĐĞ͕ĐůĂƐƐ͕ĂŐĞ͕ŝŵŵŝŐƌĂƚŝŽŶƐƚĂƚƵƐĞƚĐ͘dŚŽƐĞŵĂƌŐŝŶĂůŝǌĞĚĂƌĞŵŽƐƚŝŵƉĂĐƚĞĚĂŶĚďǇĐŚŽŽƐŝŶŐƚŽŶŽƚ ƌĞƉƉĞĂůhнϮŝƚĞĐŽŶŽŵŝĐĂůůǇŝŵƉĂĐƚƐƚŚŽƵƐĂŶĚƐŽĨƌĞƐŝĚĞŶƚƐŽĨ&ŽƌƚŽůůŝŶƐ͘dŚŝƐĂŵƉůŝĨŝĞƐĞĐŽŶŽŵŝĐŝŶƐĞĐƵƌŝƚǇ͘ dŚŝƐĂĚĚĞĚĞĐŽŶŽŵŝĐƐƚƌĞƐƐĂĨĨĞĐƚƐŵĞŶƚĂůŚĞĂůƚŚŽĨƚŚĞƐĞƉĞŽƉůĞ͘dŚĞǁĞůůďĞŝŶŐŽĨ&ŽƌƚŽůůŝŶƐƌĞƐŝĚĞŶƚƐƐŚŽƵůĚ ďĞĂƉƌŝŽƌŝƚǇ͘ ŶŽŶǇŵŽƵƐƚƚĞŶĚĞĞϬϴ͗ϰϭWD dŚĂŶŬǇŽƵĨŽƌĂŶƐǁĞƌŝŶŐ͕Dƌ͘:ƵƐƚŝŶ͘/ƚĨĞĞůƐůŝŬĞƚŚĞƌĞƐŚŽƵůĚďĞĂŶĂŶƚŝͲŚĂƌƌĂƐƐŵĞŶƚƉƌŽƚĞĐƚŝŽŶŝŶƉůĂĐĞ͊dŽŽ ŵĂŶǇE/DzŚŽŵĞŽǁŶĞƌƐƚĂŬĞĂĚǀĂŶƚĂŐĞĂŶĚƵƐĞƚŚŝƐĂƐĂĐŚĂŶĐĞƚŽŵĂŬĞƚŚĞƉĞŽƉůĞŽĨĐŽůŽƌŶĞǆƚĚŽŽƌ ƵŶĐŽŵĨŽƌƚĂďůĞ͘ ŚƌĞƚEŽƚƚŝŶŐŚĂŵϬϴ͗ϬϱWD /ĂŵĂƐƚƵĚĞŶƚĂƚ^hĂŶĚŚĂǀĞďĞĞŶĂŶĂĐƚŝǀŝƐƚŝŶ>ĂƌŝŵĞƌŽƵŶƚǇĨŽƌŵĂŶǇǇĞĂƌƐ͘hнϮŶŽůŽŶŐĞƌƐĞƌǀĞƐŝƚƐ ƵƐĞĨƵůƉƵƌƉŽƐĞĂŶĚŝŶƐƚĞĂĚĚŝƐĞŶĨƌĂŶĐŚŝƐĞƐƉŽŽƌƌĞŶƚĞƌƐĂŶĚĐŽůůĞŐĞƐƚƵĚĞŶƚƐ͘/ĨƚŚĞƌĞŝƐĨƌĂƵĚŽƌ ŝůůĞŐĂůͬĚĂŶŐĞƌŽƵƐůŝǀŝŶŐĐŽŶĚŝƚŝŽŶƐŝŶĂŚŽƵƐĞǁŝƚŚϰƌŽŽŵƐ͕ƚŚĂƚŚŽƵƐĞŚŽůĚŝƐŶŽƚĂďůĞƚŽĂĐĐĞƐƐĂŶǇůĞŐĂůŚĞůƉ ďĞĐĂƵƐĞŽĨƚĞŶƚŚĞǇĂƌĞƚŽŽǁŽƌƌŝĞĚĂďŽƵƚďĞŝŶŐĨŝŶĞĚĂŶĚͬŽƌĞǀŝĐƚĞĚ͘/ƚŝƐĂŶŝƐƐƵĞŽĨũƵƐƚŝĐĞ͕ĂĨĨŽƌĚĂďŝůŝƚǇ͕ĂŶĚ ǁŚŽǁĞĂƐĂĐŝƚǇƉƌŝŽƌŝƚŝǌĞĂŶĚƉƌŝǀĞůĞŐĞďǇŽƵƌƉŽůŝĐǇ͘tŝůůǇŽƵƐƵƉƉŽƌƚĂƌĞƉĞĂůŽĨhнϮƚŽďĞƌĞƉůĂĐĞĚůĂƚĞƌďǇĂ ŵŽƌĞũƵƐƚĂŶĚĞƋƵŝƚĂďůĞƐĞƚŽĨƌĞŐƵůĂƚŝŽŶƐ͍ ŶŽŶǇŵŽƵƐƚƚĞŶĚĞĞϬϴ͗ϭϬWD ƐƵƌǀĞǇŽĨƚŚŝƐŶĂƚƵƌĞŝƐůŝŬĞůǇƚŽƐĐĞǁƚŽǁĂƌĚůĂŶĚůŝŶĞƵƐĞƌƐ͕ǁŚŝĐŚŽǀĞƌͲĨĂǀŽƌƐƉƌŽƉĞƌƚǇŽǁŶĞƌƐ͘^ŽŐƌĂŝŶŽĨ ƐĂůƚǁŝƚŚƚŚŽƐĞŬŝŶĚŽĨƐƵƌǀĞǇƌĞƐƵůƚƐ͘dŚĞǇƉƌŽďĂďůǇƐŝŐŶŝĨŝĐĂŶƚůǇŽǀĞƌͲƌĞƉƌĞƐĞŶƚƚŚŽƐĞŵŽƌĞůŝŬĞůǇƚŽďĞŝŶĨĂǀŽƌ ŽĨƚŚĞƉĞƌŵŝƚĂƐŝƚŝƐ͘ ŬĂƚƌŝŶĂǀĂŶĚĞƌŚŽƌƐƚϬϴ͗ϭϴWD ƌĞƉĞĂůhнϮ :ĂƐƉĞƌ^ůŽƐƐϬϴ͗ϰϰWD tŚĂƚĂƌĞǇŽƵƌĐŽŵŵŝƚŵĞŶƚƐ͕ĂƐĞůĞĐƚĞĚŽĨĨŝĐŝĂůƐ͕ƚŽĨŝŶĚŝŶŐĂƐŽůƵƚŝŽŶƚŽƚŚĞĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐĐƌŝƐŝƐ͍ :ĂƐƉĞƌ^ůŽƐƐϬϴ͗ϰϱWD tŚĂƚǀĞƌďĂůĐŽŵŵŝƚŵĞŶƚƐĐĂŶǇŽƵŵĂŬĞŚĞƌĞƚŽĚĂǇƚŽĨŝŶĚŝŶŐĂƐŽůƵƚŝŽŶ͍tŽƵůĚůŽǀĞƚŽŚĞĂƌŽŶĞĨƌŽŵĞĂĐŚ ďŽĂƌĚŵĞŵďĞƌ͊ ŶŽŶǇŵŽƵƐƚƚĞŶĚĞĞϬϴ͗ϮϯWD tŚĂƚĐŽŶƚƌŽůĚŽĞƐƚŚĞĐŝƚǇŽĨ&ŽƌƚŽůůŝŶƐŚĂǀĞƚŽĞŶƐƵƌĞƚŚĂƚůĂŶĚůŽƌĚƐĚŽŶΖƚũƵƐƚƌĂŝƐĞƚŚĞƌĂƚĞƐĨŽƌƚŚĂƚĞǆƚƌĂ ƉĞƌƐŽŶ͍ dŚŝƐƋƵĞƐƚŝŽŶŚĂƐďĞĞŶĂŶƐǁĞƌĞĚůŝǀĞ ŶŽŶǇŵŽƵƐƚƚĞŶĚĞĞϬϴ͗ϬϳWD /ƐƚŚĞƌĞĂŶǇƐŽƌƚŽĨƉƵŶŝƐŚŵĞŶƚĨŽƌŵĂŬŝŶŐŵƵůƚŝƉůĞƵŶĨŽƵŶĚĞĚĐŽŵƉůĂŝŶƚƐ͍ :ƵƐƚŝŶDŽŽƌĞϬϴ͗ϭϵWD ƵƌƌĞŶƚůǇƚŚĞƌĞĂƌĞŶŽƚĂŶǇŵĞĂƐƵƌĞƐŝŶƉůĂĐĞďǇǁŚŝĐŚƚŽƚĂŬĞĂĐƚŝŽŶĂŐĂŝŶƐƚĂŶŝŶĚŝǀŝĚƵĂů;ƐͿĨŽƌƌĞƉŽƌƚŝŶŐ ĐŽŶĐĞƌŶƐŽĨŽǀĞƌŽĐĐƵƉĂŶĐǇƚŚĂƚĂƌĞĞŝƚŚĞƌƵŶĨŽƵŶĚĞĚŽƌǁŝƚŚŽƵƚŵĞƌŝƚ͘