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Home My WebLink AboutReso 88-2024 (24-447)y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭ tKZ<Z^͛KDWE^d/KE>/D^D/E/^dZd/KE^Zs/'ZDEd dŚŝƐ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚŝƐĞĨĨĞĐƚŝǀĞ:ƵůǇϭ͕ϮϬϮϰďǇĂŶĚďĞƚǁĞĞŶWĂĐŝĨŝĐ^ĞĐƵƌĞĚƋƵŝƚŝĞƐ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ/ŶĐ͕͘ĂĂůŝĨŽƌŶŝĂĐŽƌƉŽƌĂƚŝŽŶ;͞/,/͟Ϳ͕ĂŶĚƚŚĞŝƚǇŽĨ^ŽƵƚŚ ^ĂŶ&ƌĂŶĐŝƐĐŽ͕ĂŵƵŶŝĐŝƉĂůĐŽƌƉŽƌĂƚŝŽŶ;͞ŝƚǇ͟Ϳ͘ Z/d>^ ͘ ŝƚǇĚĞƐŝƌĞƐƚŽŚĂǀĞƐƉĞĐŝĨŝĐĐůĂŝŵƐĂĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚĐŽƐƚĐŽŶƚĂŝŶŵĞŶƚƐĞƌǀŝĐĞƐ ƉĞƌĨŽƌŵĞĚďǇ/,/ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂƉƉůŝĐĂďůĞůĂǁƐĂŶĚƌĞŐƵůĂƚŝŽŶƐŝŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚŝƚǇ͛Ɛ tŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶWƌŽŐƌĂŵ͘ ͘ /,/ŚĂƐĚĞǀĞůŽƉĞĚĂŶĚŵĂŶĂŐĞƐĐĞƌƚĂŝŶŚĞĂůƚŚĐĂƌĞŵĂŶĂŐĞŵĞŶƚƉƌŽĚƵĐƚƐĂŶĚ ƐĞƌǀŝĐĞƐŝŶĐůƵĚŝŶŐĐůĂŝŵƐĂĚŵŝŶŝƐƚƌĂƚŝŽŶ͕ƚĞůĞƉŚŽŶŝĐĐĂƐĞŵĂŶĂŐĞŵĞŶƚ͕ƵƚŝůŝǌĂƚŝŽŶƌĞǀŝĞǁĂŶĚ ďŝůůƌĞǀŝĞǁ͘ ͘ /,/ŝƐǁŝůůŝŶŐƚŽƉƌŽǀŝĚĞƐƵĐŚƐĞƌǀŝĐĞƐŽŶƚŚĞƚĞƌŵƐĂŶĚĐŽŶĚŝƚŝŽŶƐŚĞƌĞŝŶĂĨƚĞƌ ƐƚĂƚĞĚ͘ EKt d,Z&KZ͕ ŝŶ ĐŽŶƐŝĚĞƌĂƚŝŽŶ ŽĨ ƚŚĞ ŵƵƚƵĂů ĐŽǀĞŶĂŶƚƐ͕ ĂŐƌĞĞŵĞŶƚƐ͕ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ĂŶĚǁĂƌƌĂŶƚŝĞƐĐŽŶƚĂŝŶĞĚŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͕ƚŚĞƉĂƌƚŝĞƐĂŐƌĞĞĂƐĨŽůůŽǁƐ͗ 'ZDEd ϭ͘ dĞƌŵƐ͘dŚŝƐ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚƐŚĂůůďĞĨŽƌƚŚĞƉĞƌŝŽĚƐĞƚĨŽƌƚŚďĞůŽǁĞǆĐĞƉƚĂƐ ŵĂǇďĞĂŵĞŶĚĞĚŽƌĐĂŶĐĞůĞĚĂƐŚĞƌĞŝŶĂĨƚĞƌƉƌŽǀŝĚĞĚ͘ ϭ͘ϭ͘ dŚŝƐŐƌĞĞŵĞŶƚŝƐĞĨĨĞĐƚŝǀĞ:ƵůǇϭ͕ϮϬϮϰĂŶĚƐŚĂůůĐŽŶƚŝŶƵĞƚŽďĞŝŶĨŽƌĐĞ ĨŽƌƚŚƌĞĞǇĞĂƌƐƚŚƌŽƵŐŚ:ƵŶĞϯϬ͕ϮϬϮϳ;ƚŚĞ͞/ŶŝƚŝĂůdĞƌŵ͟Ϳ͘ŝƚǇŵĂǇ͕ƵƉŽŶƐŝǆƚǇ;ϲϬͿĚĂǇƐ ƉƌŝŽƌǁƌŝƚƚĞŶŶŽƚŝĐĞ͕ŝŶŝƚƐƐŽůĞĂŶĚĂďƐŽůƵƚĞĚŝƐĐƌĞƚŝŽŶ͕ĞǆƚĞŶĚƚŚĞĞŶĚĚĂƚĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌ ƵƉƚŽƚǁŽƐƵĐĐĞƐƐŝǀĞƚǁĞůǀĞŵŽŶƚŚƉĞƌŝŽĚƐƚŚĞƌĞĂĨƚĞƌ;ĞĂĐŚĂ͞ZĞŶĞǁĂůdĞƌŵ͘͟ͿŶǇƐƵĐŚ ĞǆƚĞŶƐŝŽŶƐŚĂůůƌĞƋƵŝƌĞĂǁƌŝƚƚĞŶĂŵĞŶĚŵĞŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͕ĂƐƉƌŽǀŝĚĞĚĨŽƌŚĞƌĞŝŶ͘ ϭ͘Ϯ͘ EŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞĨŽƌĞŐŽŝŶŐ͕ŝŶƚŚĞĞǀĞŶƚ/dzƌĞƋƵĞƐƚƐŝŶǁƌŝƚŝŶŐƚŚĂƚ /EdZZĐŽŶƚŝŶƵĞƚŽƉƌŽǀŝĚĞĂŶǇƐĞƌǀŝĐĞƐĨŽƌĐůĂŝŵƐƌĞƉŽƌƚĞĚŚĞƌĞƵŶĚĞƌĂĨƚĞƌƚŚĞ ĞǆƉŝƌĂƚŝŽŶŽƌĐĂŶĐĞůůĂƚŝŽŶŚĞƌĞŽĨ͕ƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůƌĞŵĂŝŶŝŶĞĨĨĞĐƚƚŽŐŽǀĞƌŶƚŚĞ ƉĂƌƚŝĞƐ͛ƌĞƐƉĞĐƚŝǀĞƌŝŐŚƚƐĂŶĚŽďůŝŐĂƚŝŽŶƐǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞƐĞƌǀŝĐĞƐĨŽƌĐůĂŝŵƐƌĞƉŽƌƚĞĚ͘ Ϯ͘ ĞĨŝŶŝƚŝŽŶƐ͘ /Ŷ ĂĚĚŝƚŝŽŶ ƚŽ ƚŚĞ ǀĂƌŝŽƵƐ ƚĞƌŵƐ ĚĞĨŝŶĞĚ ŝŶ ƚŚĞ ďŽĚǇ ŽĨ ƚŚŝƐ ŐƌĞĞŵĞŶƚ͕ƚŚĞĨŽůůŽǁŝŶŐĐĂƉŝƚĂůŝǌĞĚƚĞƌŵƐƐŚĂůůŚĂǀĞƚŚĞŵĞĂŶŝŶŐƐŐŝǀĞŶďĞůŽǁ͗ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ 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ĐŽƐƚƐŽĨůĞŐĂůƚƌĂŶƐĐƌŝƉƚƐŽĨƚĞƐƚŝŵŽŶǇƚĂŬĞŶĂƚĐŽƌŽŶĞƌƐ͛ŝŶƋƵĞƐƚƐ ŽƌĨƌŽŵĐƌŝŵŝŶĂůŽƌĐŝǀŝůƉƌŽĐĞĞĚŝŶŐƐ͖ Ϯ͘Ϯ͘ϱ ĐŽƐƚƐŽĨĐŽƉŝĞƐŽĨĂŶǇƉƵďůŝĐƌĞĐŽƌĚƐĂŶĚͬŽƌŵĞĚŝĐĂůƌĞĐŽƌĚƐ͖ Ϯ͘Ϯ͘ϲ ĐŽƐƚƐŽĨŝŶĚĞƉĞŶĚĞŶƚŵĞĚŝĐĂůĞǆĂŵŝŶĂƚŝŽŶƐĂŶĚͬŽƌĞǀĂůƵĂƚŝŽŶƐĨŽƌ ƌĞŚĂďŝůŝƚĂƚŝŽŶĂŶĚͬŽƌƚŽĚĞƚĞƌŵŝŶĞƚŚĞĞǆƚĞŶƚŽĨƚŚĞůĂŝŵĂŶƚ͛ƐĂŶĚͬŽƌƚŚĞŝƚǇ͛Ɛ ůŝĂďŝůŝƚǇ͖ Ϯ͘Ϯ͘ϳ ĐŽƐƚƐ ŽĨ ŝŶĚĞƉĞŶĚĞŶƚ ĨŝĞůĚ ĞǆĂŵŝŶĞƌƐ ĂŶĚ ƌĞůĂƚĞĚ ĞǆƉĞŶƐĞƐ ƚŽ ŝŶǀĞƐƚŝŐĂƚĞĂĐůĂŝŵ͖ Ϯ͘Ϯ͘ϴ ĐŽƐƚƐŽĨĂůůŽƐƚŽŶƚĂŝŶŵĞŶƚ^ĞƌǀŝĐĞƐ;ĚĞĨŝŶĞĚŽŶǆŚŝďŝƚ^ĞƌǀŝĐĞ ^ĐŽƉĞŽĨtŽƌŬͿŝŶĐůƵĚŝŶŐďƵƚŶŽƚůŝŵŝƚĞĚƚŽ͗ŵĞĚŝĐĂůďŝůůƌĞǀŝĞǁŽƌĂĚũƵĚŝĐĂƚŝŽŶ ŝŶĐůƵĚŝŶŐŶĞƚǁŽƌŬƌĞůĂƚĞĚĞǆƉĞŶƐĞƐĂŶĚŝŶĚĞƉĞŶĚĞŶƚďŝůůƌĞǀŝĞǁĨĞĞƐ͖ŵĞĚŝĐĂů ŵĂŶĂŐĞŵĞŶƚĞǆƉĞŶƐĞƐƌĞůĂƚĞĚƚŽŵĞĚŝĐĂůĐŽƐƚĐŽŶƚĂŝŶŵĞŶƚĞĨĨŽƌƚƐŝŶĐůƵĚŝŶŐ͕ ǁŝƚŚŽƵƚ ůŝŵŝƚĂƚŝŽŶ͕ ƵƚŝůŝǌĂƚŝŽŶ ƌĞǀŝĞǁ ƉƌŽǀŝĚĞĚ ďǇ ĐůŝŶŝĐĂů ƐƚĂĨĨ ŝŶĐůƵĚŝŶŐ ƉĞĞƌ ƌĞǀŝĞǁ ŝŶĐůƵĚŝŶŐ ĨĞĞƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ ƌĞƋƵĞƐƚ ĨŽƌ /ŶĚĞƉĞŶĚĞŶƚ DĞĚŝĐĂů ZĞǀŝĞǁ͖ŶƵƌƐĞĐĂƐĞŵĂŶĂŐĞŵĞŶƚŝŶĐůƵĚŝŶŐƚĞůĞƉŚŽŶŝĐŽƌĨŝĞůĚĐĂƐĞŵĂŶĂŐĞŵĞŶƚ͖ Ă͘ WƌŝŽƌĂƵƚŚŽƌŝǌĂƚŝŽŶŝƐĂŶĂƌƌĂŶŐĞŵĞŶƚǁƌŝƚƚĞŶŝŶƚŽƚŚĞhZ ƉůĂŶƚŚĂƚĚĞƐĐƌŝďĞƐƚŚĞƐƉĞĐŝĨŝĐĐŽŶĚŝƚŝŽŶƐŽƌĐŝƌĐƵŵƐƚĂŶĐĞƐƵŶĚĞƌǁŚŝĐŚĂ ƚƌĞĂƚŝŶŐ 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ƚŚĞ ƉĞƌŵĂŶĞŶƚƉĂƌƚŝĂůŽƌ ƉĞƌŵĂŶĞŶƚƚŽƚĂůĚŝƐĂďŝůŝƚǇĂǁĂƌĚŚĂƐďĞĞŶƐĂƚŝƐĨŝĞĚĂŶĚŶŽŽŶŐŽŝŶŐŝŶĚĞŵŶŝƚǇ ƉĂǇŵĞŶƚƐŝƐďĞŝŶŐƉĂŝĚ͖ Ϯ͘ϴ͘Ϯ Ŷ/ŶĚĞŵŶŝƚǇĐůĂŝŵ͕ǁŚŝĐŚŚĂƐďĞĞŶƌĞƐŽůǀĞĚĂŶĚŝƐŽƉĞŶŽŶůǇĨŽƌ ƉƵƌƉŽƐĞƐŽĨĂĚŵŝŶŝƐƚĞƌŝŶŐƚŚĞĨƵƚƵƌĞŵĞĚŝĐĂůƉƌŽǀŝƐŝŽŶŽĨƚŚĞĂǁĂƌĚ͕ƉƌŽǀŝĚĞĚƚŚĞ ŵĞĚŝĐĂůƉĂǇŵĞŶƚĂĐƚŝǀŝƚǇĚŽĞƐŶŽƚĞǆĐĞĞĚƚŚƌĞĞƚŝŵĞƐƉĞƌǇĞĂƌ͘ Ϯ͘ϵ͘ ͞DĞĚŝĐĂů KŶůǇ ůĂŝŵ͟ ŵĞĂŶƐ Ă YƵĂůŝĨŝĞĚ ůĂŝŵ ŝŶĐůƵĚŝŶŐ͕ ǁŝƚŚŽƵƚ ůŝŵŝƚĂƚŝŽŶ͕ŽŶĞŽƌŵŽƌĞŽĨƚŚĞĨŽůůŽǁŝŶŐĞůĞŵĞŶƚƐ͗ Ϯ͘ϵ͘ϭ ĂǁŽƌŬͲŝŶũƵƌǇĐĂƐĞƚŚĂƚĚŽĞƐŶŽƚƌĞƐƵůƚŝŶĐŽŵƉĞŶƐĂďůĞůŽƐƚƚŝŵĞ ďƵƚƌĞƐƵůƚƐŝŶŵĞĚŝĐĂůƚƌĞĂƚŵĞŶƚďĞǇŽŶĚĨŝƌƐƚĂŝĚ͘ Ϯ͘ϵ͘Ϯ ĂŶǇǁŽƌŬĞƌƐΖĐŽŵƉĞŶƐĂƚŝŽŶĐůĂŝŵǁŚĞƌĞƚŚĞŽŶůǇŝƐƐƵĞŝƐƉĂǇŵĞŶƚ ŽĨŵĞĚŝĐĂůďŝůůƐĨŽƌƌĞĂƐŽŶĂďůĞĂŶĚŶĞĐĞƐƐĂƌǇĐĂƌĞŽƌƚƌĞĂƚŵĞŶƚ͖ Ϯ͘ϵ͘ϯ ƚŚĞƚŽƚĂůĂŵŽƵŶƚƉĂŝĚŽŶƚŚĞĐůĂŝŵĨŽƌŵĞĚŝĐĂůĐĂƌĞŽƌƚƌĞĂƚŵĞŶƚŝƐ Ψϯ͕ϬϬϬŽƌůĞƐƐ͖ Ϯ͘ϵ͘ϰ ŶŽ ŝŶǀĞƐƚŝŐĂƚŝŽŶ ŝƐ ŶĞĞĚĞĚ ƚŽ ĚĞƚĞƌŵŝŶĞ ĐŽŵƉĞŶƐĂďŝůŝƚǇ ŽĨ ƚŚĞ ĐůĂŝŵ͘ Ϯ͘ϵ͘ϱ ƚŝŵĞŽĨĨǁŽƌŬĚƵĞƚŽĂƉŽƚĞŶƚŝĂůůǇĐŽŵƉĞŶƐĂďůĞŝŶũƵƌǇĚŽĞƐŶŽƚ ŵĞĞƚƚŚĞũƵƌŝƐĚŝĐƚŝŽŶĂůǁĂŝƚŝŶŐƉĞƌŝŽĚ͖ Ϯ͘ϵ͘ϲ ƚŚĞƌĞŝƐŶŽĞǆƉŽƐƵƌĞĨŽƌƉĞƌŵĂŶĞŶƚƉĂƌƚŝĂůŽƌƉĞƌŵĂŶĞŶƚƚŽƚĂů ĚŝƐĂďŝůŝƚǇďĞŶĞĨŝƚƐ͖ĂŶĚ Ϯ͘ϵ͘ϳ ǁŚĞƌĞŵŽĚŝĨŝĞĚĚƵƚǇŝƐƉƌŽǀŝĚĞĚĨŽƌŶŽůŽŶŐĞƌƚŚĂŶϭϮǁĞĞŬƐ Ϯ͘ϵ͘ϴ /ŶĚĞŵŶŝƚǇďĞŶĞĨŝƚƐĂƌĞŶŽƚĚƵĞŽƌƉŽƚĞŶƚŝĂůůǇĚƵĞ Ϯ͘ϵ͘ϵ ŽŶǀĞƌƐŝŽŶZƵůĞʹĐůĂŝŵŵĂǇďĞĐŽŶǀĞƌƚĞĚƚŽŝŶĚĞŵŶŝƚǇŝĨŽŶĞŽƌ ŵŽƌĞŽĨƚŚĞĨŽůůŽǁŝŶŐ͗ Ă͘ dŽƚĂůĐŽƐƚŽĨŵĞĚŝĐĂůĐĂƌĞĞǆĐĞĞĚƐΨϯ͕ϱϬϬĂŶĚŝƐŶŽƚƌĞĂĚǇ ĨŽƌŝŵŵĞĚŝĂƚĞĐůŽƐƵƌĞǁŚĞŶƚŚĞĚŽůůĂƌĂŵŽƵŶƚƉŝĞƌĐĞƐƚŚĞƚŚƌĞƐŚŽůĚ͖ ď͘ ĐůĂŝŵŚĂƐďĞĞŶŽƉĞŶĞĚĨŽƌϭϴϬĚĂǇƐŽƌŵŽƌĞ͖ĂŶĚ Đ͘ ĂĚĚŝƚŝŽŶĂů ŝŶǀĞƐƚŝŐĂƚŝŽŶ ŝƐ ŶĞĞĚĞĚ ƚŽ ĚĞƚĞƌŵŝŶĞ ĐŽŵƉĞŶƐĂďŝůŝƚǇ ŽĨ ĐůĂŝŵ ĞǀĞŶ ŝĨ ŝŶũƵƌĞĚ ǁŽƌŬĞƌ ŝƐ ŶŽƚ ůŽƐŝŶŐ ƚŝŵĞ Žƌ ĂĚĚŝƚŝŽŶĂůŝŶǀĞƐƚŝŐĂƚŝŽŶŝƐŶĞĞĚĞĚƚŽĚĞƚĞƌŵŝŶĞƐƵďƌŽŐĂƚŝŽŶƐƚĂƚƵƐ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϲ Ϯ͘ϭϬ͘ ͞ƐďĞƐƚŽƐůĂŝŵ͟ŵĞĂŶƐĂYƵĂůŝĨŝĞĚůĂŝŵŝŶĐůƵĚŝŶŐ͕ǁŝƚŚŽƵƚůŝŵŝƚĂƚŝŽŶ͕ ĂŶǇtŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶĐůĂŝŵƌĞƐƵůƚŝŶŐĨƌŽŵĂĚŝƐĞĂƐĞŽƌŝůůŶĞƐƐĐĂƵƐĞĚďǇĐŽŶƚŝŶƵŽƵƐ ĞǆƉŽƐƵƌĞƚŽƐŽŵĞĚĞůĞƚĞƌŝŽƵƐƐƵďƐƚĂŶĐĞ͕ŵŝĐƌŽŽƌŐĂŶŝƐŵŽƌŚĂƌŵĨƵůƐƵďƐƚĂŶĐĞƐŝŶƚŚĞ ĐŽƵƌƐĞŽĨĞŵƉůŽǇŵĞŶƚƉƌŽǀŝĚĞĚŝƚǇŝƐŶŽƚƚŚĞůĞĂĚŝŶŐĚĞĨĞŶĚĂŶƚ͘ Ϯ͘ϭϭ͘ ͞&ŝƌƐƚŝĚ͟ŵĞĂŶƐ͞ĂŶǇŽŶĞͲƚŝŵĞƚƌĞĂƚŵĞŶƚ͕ĂŶĚĂŶǇĨŽůůŽǁͲƵƉǀŝƐŝƚĨŽƌƚŚĞ ƉƵƌƉŽƐĞŽĨŽďƐĞƌǀĂƚŝŽŶŽĨŵŝŶŽƌƐĐƌĂƚĐŚĞƐ͕ĐƵƚƐ͕ďƵƌŶƐ͕ƐƉůŝŶƚĞƌƐ͕ĂŶĚƐŽĨŽƌƚŚ͕ǁŚŝĐŚĚŽ ŶŽƚŽƌĚŝŶĂƌŝůǇƌĞƋƵŝƌĞŵĞĚŝĐĂůĐĂƌĞ͘^ƵĐŚŽŶĞͲƚŝŵĞƚƌĞĂƚŵĞŶƚĂŶĚĨŽůůŽǁͲƵƉǀŝƐŝƚĨŽƌƚŚĞ ƉƵƌƉŽƐĞŽĨŽďƐĞƌǀĂƚŝŽŶŝƐĐŽŶƐŝĚĞƌĞĚĨŝƌƐƚĂŝĚĞǀĞŶƚŚŽƵŐŚƉƌŽǀŝĚĞĚďǇĂƉŚǇƐŝĐŝĂŶŽƌ ƌĞŐŝƐƚĞƌĞĚƉƌŽĨĞƐƐŝŽŶĂůƉĞƌƐŽŶŶĞů͘͟/ŶƐƵƌĞĚĞŵƉůŽǇĞƌŝŶĂůŝĨŽƌŶŝĂĂƌĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚ ĂůůĐůĂŝŵƐĨŽƌǁŚŝĐŚŵĞĚŝĐĂůƚƌĞĂƚŵĞŶƚĐŽƐƚƐĂƌĞŝŶĐƵƌƌĞĚŝŶĐůƵĚŝŶŐĨŝƌƐƚĂŝĚĐůĂŝŵƐ͘&ŝƌƐƚ ĂŝĚĐůĂŝŵƐĂƌĞĐƌĞĂƚĞĚĂƐĂŵĞĚŝĐĂůŽŶůǇĐůĂŝŵĂŶĚƌĞƉŽƌƚĞĚƚŽƚŚĞĐĂƌƌŝĞƌĂůŽŶŐǁŝƚŚƚŚĞ ĂƐƐŽĐŝĂƚĞĚĐŽƐƚƐ͘dŚĞĐĂƌƌŝĞƌŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƌĞƉŽƌƚŝŶŐƚŚĞƐĞĐůĂŝŵƐƚŽt/Z͘ Ϯ͘ϭϮ͘ ͞/ŶĐŝĚĞŶƚKŶůǇ͟ŵĞĂŶƐĂĐůĂŝŵĨŽƌǁŚŝĐŚĂŶŝŶĐŝĚĞŶƚŝƐƌĞƉŽƌƚĞĚǁŝƚŚŶŽ ŵĞĚŝĐĂůĂƚƚĞŶƚŝŽŶŽƌŝĨŵĞĚŝĐĂůĂƚƚĞŶƚŝŽŶŝƐƉƌŽǀŝĚĞĚ͕ŝƚŝƐĂĚŵŝŶŝƐƚĞƌĞĚŝŵŵĞĚŝĂƚĞůǇĂĨƚĞƌ ƚŚĞŝŶũƵƌǇŽĐĐƵƌƐĂŶĚĂƚƚŚĞůŽĐĂƚŝŽŶǁŚĞƌĞŝƚŽĐĐƵƌƌĞĚǁŝƚŚŶŽĂƐƐŽĐŝĂƚĞĚŵĞĚŝĐĂůĐŽƐƚ͘ Ϯ͘ϭϯ͘ ͞^ĞƌǀŝĐĞƐ͟ŵĞĂŶƐĂĐŽůůĞĐƚŝǀĞƌĞĨĞƌĞŶĐĞƚŽƚŚĞƉƌŽĚƵĐƚƐĂŶĚͬŽƌƐĞƌǀŝĐĞƐ ƐĞƚĨŽƌƚŚŝŶƚŚŝƐŐƌĞĞŵĞŶƚƚŽďĞƉƌŽǀŝĚĞĚďǇ/,/͘ Ϯ͘ϭϰ͘ ͞^ĞƌǀŝĐĞ&ĞĞƐ͟ŵĞĂŶƐĂĐŽůůĞĐƚŝǀĞƌĞĨĞƌĞŶĐĞƚŽƚŚĞǀĂƌŝŽƵƐĨĞĞƐƚŽďĞƉĂŝĚ ďǇŝƚǇƚŽ/,/ƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͘ Ϯ͘ϭϱ͘ ͞^ŽůǀĞŶƚ͟ŵĞĂŶƐ͕ǁŚĞŶƵƐĞĚǁŝƚŚƌĞƐƉĞĐƚƚŽĞŝƚŚĞƌƉĂƌƚǇ͕ƚŚĂƚ;ĂͿƐƵĐŚ ƉĂƌƚǇŝƐŶŽƚ͞ŝŶƐŽůǀĞŶƚ͟ǁŝƚŚŝŶƚŚĞŵĞĂŶŝŶŐŽĨϭϭh͘^͘͘^ĞĐƚŝŽŶϭϬϭ;ϯϮͿĂŶĚƚŚĞĐĂƐĞƐ ŝŶƚĞƌƉƌĞƚŝŶŐƚŚĞƐĂŵĞ͖;ďͿƐƵĐŚƉĂƌƚǇŝƐŐĞŶĞƌĂůůǇĂďůĞƚŽƉĂǇŝƚƐĚĞďƚƐĂƐƚŚĞǇďĞĐŽŵĞ ĚƵĞ͖ĂŶĚ;ĐͿƐƵĐŚƉĂƌƚǇĚŽĞƐŶŽƚŚĂǀĞƵŶƌĞĂƐŽŶĂďůǇƐŵĂůůĐĂƉŝƚĂůƚŽĐĂƌƌǇŽŶƐƵĐŚƉĂƌƚǇ͛Ɛ ďƵƐŝŶĞƐƐĂƐƚŚĞƌĞƚŽĨŽƌĞŽƉĞƌĂƚĞĚĂŶĚĂůůďƵƐŝŶĞƐƐĞƐŝŶǁŚŝĐŚƐƵĐŚƉĂƌƚǇŝƐĂďŽƵƚƚŽ ĞŶŐĂŐĞ͘ Ϯ͘ϭϲ͘ ͞/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵ͟ŵĞĂŶƐƚŚĞŝŶƐƵƌĂŶĐĞƉƌŽŐƌĂŵĞƐƚĂďůŝƐŚĞĚďǇŝƚǇƚŽ ƉƌŽǀŝĚĞǁŽƌŬĞƌƐ͛ĐŽŵƉĞŶƐĂƚŝŽŶďĞŶĞĨŝƚƐƚŽĞŵƉůŽǇĞĞƐŽĨŝƚǇ͛ƐĞŵƉůŽǇĞƌŵĞŵďĞƌƐĂƐƐĞƚ ĨŽƌƚŚƵŶĚĞƌƚŚĞƌƵůĞƐ͕ŽƌĚŝŶĂŶĐĞƐĂŶĚƉƌŽǀŝƐŝŽŶƐŽĨŝƚǇ͘ ϯ͘ ^ĞƌǀŝĐĞƐdŽĞWĞƌĨŽƌŵĞĚďǇ/,/͘/,/ĂŐƌĞĞƐƚŽƉĞƌĨŽƌŵ͕ĂŶĚƐŚĂůůƉƌŽǀŝĚĞ͕ĞĂĐŚŽĨ ƚŚĞĨŽůůŽǁŝŶŐ^ĞƌǀŝĐĞƐŽŶƚŚĞƚĞƌŵƐƐĞƚĨŽƌƚŚŚĞƌĞŝŶĂŶĚŝŶǆŚŝďŝƚ^ĐŽƉĞŽĨtŽƌŬĂƚƚĂĐŚĞĚ ŚĞƌĞƚŽ͗ ϯ͘ϭ͘ ůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞƐ͘/,/ƐŚĂůů͗ ϯ͘ϭ͘ϭ ƌĞǀŝĞǁĞĂĐŚůĂŝŵƌĞĐĞŝǀĞĚĨƌŽŵŝƚǇĂŶĚƉƌŽĐĞƐƐĞĂĐŚƐƵĐŚůĂŝŵ ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵ͛ƐƐƚĂƚĞŵĞŶƚŽĨǁŽƌŬ͖ ϯ͘ϭ͘Ϯ ĐŽŶĚƵĐƚĂŶŝŶǀĞƐƚŝŐĂƚŝŽŶŽĨĞĂĐŚƌĞƉŽƌƚĞĚůĂŝŵƚŽĚĞƚĞƌŵŝŶĞŽŶ ďĞŚĂůĨŽĨŝƚǇĨŽƌĞĂĐŚƌĞƉŽƌƚĞĚĞŵƉůŽǇĞĞŝŶũƵƌǇŽƌŝůůŶĞƐƐƚŚŽƐĞďĞŶĞĨŝƚƐ͕ŝĨĂŶǇ͕ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϳ ƚŚĂƚƐŚŽƵůĚďĞƌĞŶĚĞƌĞĚƵŶĚĞƌƚŚĞ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵ͘ŶǇůĂŝŵďĞůŝĞǀĞĚƚŽďĞ ĨƌĂƵĚƵůĞŶƚƐŚĂůůďĞƌĞĨĞƌƌĞĚƚŽ/,/͛ƐŝŶͲŚŽƵƐĞƐƉĞĐŝĂůŝŶǀĞƐƚŝŐĂƚŝǀĞƵŶŝƚĨŽƌĨƵƌƚŚĞƌ ŝŶǀĞƐƚŝŐĂƚŝŽŶ͕ĂŶĚƚŚĞƵŶŝƚƐŚĂůůǁŝƚŚƚŚĞƉƌŝŽƌĂƉƉƌŽǀĂůŽĨŝƚǇĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌ ƐƵĐŚůĂŝŵŝƐƌĞƋƵŝƌĞĚƚŽďĞƐƵďŵŝƚƚĞĚƚŽƚŚĞĂƉƉůŝĐĂďůĞŝƐƚƌŝĐƚƚƚŽƌŶĞǇ͛ƐKĨĨŝĐĞ ŽƌhŶŝƚĞĚ^ƚĂƚĞƐƚƚŽƌŶĞǇ͖ ϯ͘ϭ͘ϯ ĞƐƚĂďůŝƐŚĂŶĚŵĂŝŶƚĂŝŶĂŶĞůĞĐƚƌŽŶŝĐƌĞĐŽƌĚĨŝůĞĨŽƌĞĂĐŚůĂŝŵ͖ ϯ͘ϭ͘ϰ ŵĂŝŶƚĂŝŶĂŶĂǀĞƌĂŐĞĂƐĞůŽĂĚŽĨϭϱϬĐĂƐĞƐŽƌůĞƐƐƉĞƌ/ŶĚĞŵŶŝƚǇ ĚũƵƐƚĞƌ͘dŚĞĂǀĞƌĂŐĞ/ŶĚĞŵŶŝƚǇĐĂƐĞůŽĂĚƐŚĂůůŶŽƚĞǆĐĞĞĚϭϱϬĐĂƐĞƐŝŶĂŶǇŐŝǀĞŶ ƋƵĂƌƚĞƌ͘/ŶƚŚĞĞǀĞŶƚƚŚĂƚƚŚĞĨƌĞƋƵĞŶĐǇŽĨŶĞǁĐůĂŝŵƐŝŶĐƌĞĂƐĞƐƚŽĂůĞǀĞůƚŚĂƚ ǁĂƌƌĂŶƚƐƚŚĞĂĚĚŝƚŝŽŶŽĨƐƚĂĨĨƚŽŵĂŝŶƚĂŝŶƚŚĞĐĂƐĞůŽĂĚƌĞƋƵŝƌĞŵĞŶƚƐ͕/,/ĂŶĚŝƚǇ ƐŚĂůůĂŐƌĞĞƚŽĞǀĂůƵĂƚĞƚŚĞĐĂƐĞůŽĂĚĨŽƌĂƉĞƌŝŽĚŽĨĂƚůĞĂƐƚƚŚƌĞĞĐŽŶƐĞĐƵƚŝǀĞ ŵŽŶƚŚƐ ďĞĨŽƌĞ ĂĚũƵƐƚŝŶŐ ƚŚĞ ŶƵŵďĞƌ ŽĨ ƐƚĂĨĨ ĂĐĐŽƌĚŝŶŐůǇ͘ ĂƐĞůŽĂĚ ƐŚĂůů ďĞ ĚĞĨŝŶĞĚďǇƚŚĞŶƵŵďĞƌŽĨŝŶĚĞŵŶŝƚǇĂŶĚĨƵƚƵƌĞŵĞĚŝĐĂůĐĂƐĞƐŽƉĞŶŽŶƚŚĞůĂƐƚĚĂǇ ŽĨĞĂĐŚĐĂůĞŶĚĂƌŵŽŶƚŚ͘ ϯ͘ϭ͘ϱ ĂƌƌĂŶŐĞĨŽƌĂŶĚƌĞƚĂŝŶŝŶĚĞƉĞŶĚĞŶƚŝŶǀĞƐƚŝŐĂƚŽƌƐŽƌŵĞĚŝĐĂůŽƌ ŽƚŚĞƌĞǆƉĞƌƚƐ͕ƚŽƚŚĞĞǆƚĞŶƚĚĞĞŵĞĚŶĞĐĞƐƐĂƌǇŽƌĚĞƐŝƌĂďůĞďǇ/,/͕ŝŶĐŽŶŶĞĐƚŝŽŶ ǁŝƚŚƉƌŽĐĞƐƐŝŶŐĂŶǇůĂŝŵ͖ ϯ͘ϭ͘ϲ ŵĂŝŶƚĂŝŶ ĂŶ ĞƐƚŝŵĂƚĞ ŽĨ ƚŚĞ ƚŽƚĂů ĐŽƐƚƐ ŽĨ Ăůů ƌĞĂƐŽŶĂďůĞ ĂŶĚ ĨŽƌĞƐĞĞĂďůĞďĞŶĞĨŝƚƐƉĂǇĂďůĞĂŶĚƌĞůĂƚĞĚĞǆƉĞŶƐĞƐŽŶĞĂĐŚYƵĂůŝĨŝĞĚůĂŝŵďĂƐĞĚ ƵƉŽŶƚŚĞĨĂĐƚƐĂŶĚĐŝƌĐƵŵƐƚĂŶĐĞƐŬŶŽǁŶĂƚƚŚĞƚŝŵĞĂŶĚƵƉĚĂƚĞƚŚĞƐĂŵĞŽŶ ƌĞŐƵůĂƌĂŶĚƉĞƌŝŽĚŝĐďĂƐŝƐ͖ ϯ͘ϭ͘ϳ ƉĂǇ ŵĞĚŝĐĂů ĂŶĚ ĚĞĂƚŚ ďĞŶĞĨŝƚƐ͕ ƚĞŵƉŽƌĂƌǇ ĂŶĚ ƉĞƌŵĂŶĞŶƚ ĚŝƐĂďŝůŝƚǇĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚŽƚŚĞƌůŽƐƐĞƐĂŶĚĞǆƉĞŶƐĞƐŽŶYƵĂůŝĨŝĞĚůĂŝŵƐ;ĂͿŝĨ͕ ŝŶƚŚĞũƵĚŐŵĞŶƚŽĨ/,/͕ƐƵĐŚƉĂǇŵĞŶƚǁŽƵůĚďĞƉƌƵĚĞŶƚĨŽƌŝƚǇĂŶĚ;ďͿƉƵƌƐƵĂŶƚ ƚŽƚŚĞƚĞƌŵƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚŽƌĂƐŵĂǇďĞĂƉƉƌŽǀĞĚďǇŝƚǇŝŶŝƚƐƐŽůĞĂŶĚ ĂďƐŽůƵƚĞĚŝƐĐƌĞƚŝŽŶ͖ ϯ͘ϭ͘ϴ ƉĞƌĨŽƌŵƌĞĂƐŽŶĂďůĞĂŶĚŶĞĐĞƐƐĂƌǇĂĚŵŝŶŝƐƚƌĂƚŝǀĞĂŶĚĐůĞƌŝĐĂůǁŽƌŬ ŝŶ ĐŽŶŶĞĐƚŝŽŶ ǁŝƚŚ ůĂŝŵƐ ŝŶĐůƵĚŝŶŐ ƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ ĐŚĞĐŬƐ ĚƌĂǁŶ ŽŶ ƚŚĞ ĂĐĐŽƵŶƚŽƌĂĐĐŽƵŶƚƐĞƐƚĂďůŝƐŚĞĚďǇ͕ŽƌĂƚƚŚĞĚŝƌĞĐƚŝŽŶŽĨ͕ŝƚǇ͖ ϯ͘ϭ͘ϵ ĂƐƐŝƐƚŝŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚ ŝƚǇ͛ƐƐĞůĞĐƚŝŽŶŽĨĚĞĨĞŶƐĞĐŽƵŶƐĞůƚŽ ĚĞĨĞŶĚYƵĂůŝĨŝĞĚůĂŝŵƐŽƌůŽƐƐĞƐ͕ŝĨƌĞƋƵĞƐƚĞĚďǇŝƚǇ͖ ϯ͘ϭ͘ϭϬ ĂƐƐŝƐƚŝƚǇ͛ƐƐĞůĞĐƚĞĚĚĞĨĞŶƐĞĐŽƵŶƐĞůŝŶƉƌĞƉĂƌŝŶŐƚŚĞĚĞĨĞŶƐĞŽĨ ůŝƚŝŐĂƚĞĚ ůĂŝŵƐ͕ ŶĞŐŽƚŝĂƚŝŶŐ ƐĞƚƚůĞŵĞŶƚƐ͕ ĂŶĚ ƉƵƌƐƵŝŶŐ ƐƵďƌŽŐĂƚŝŽŶ Žƌ ĐŽŶƚƌŝďƵƚŝŽŶĂĐƚŝŽŶƐ͖ ϯ͘ϭ͘ϭϭ ;ĂͿŽǀĞƌƐĞĞƚŚĞƚƌĞĂƚŵĞŶƚƉƌŽŐƌĂŵƐƌĞĐŽŵŵĞŶĚĞĚĨŽƌůĂŝŵĂŶƚƐ ďǇƉŚǇƐŝĐŝĂŶƐ͕ŵĞĚŝĐĂůƐƉĞĐŝĂůŝƐƚƐ͕ĂŶĚŽƚŚĞƌŚĞĂůƚŚĐĂƌĞƉƌŽǀŝĚĞƌƐďǇƌĞǀŝĞǁŝŶŐĂůů ƌĞƉŽƌƚƐ ƉƌĞƉĂƌĞĚ ďǇ ƐƵĐŚ ƉƌŽǀŝĚĞƌƐ ĂŶĚ ŵĂŝŶƚĂŝŶŝŶŐ ƐƵĐŚ ĐŽŶƚĂĐƚǁŝƚŚƐƵĐŚ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϴ ƉƌŽǀŝĚĞƌƐĂƐŵĂǇďĞĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞũƵĚŐŵĞŶƚŽĨ/,/͖ĂŶĚ;ďͿŵĂŶĂŐĞƚŚĞ ŵĞĚŝĐĂůƚƌĞĂƚŵĞŶƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵ͖ ϯ͘ϭ͘ϭϮ ƉƌĞƉĂƌĞĂŶĚĨŝůĞŽŶďĞŚĂůĨŽĨŝƚǇĂůůĨŽƌŵƐƌĞůĂƚĞĚƚŽƚŚĞƉƌŽĐĞƐƐŝŶŐ ŽĨůĂŝŵƐƚŚĂƚĂƌĞƌĞƋƵŝƌĞĚďǇƚŚĞ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵŽƌŐŽǀĞƌŶŵĞŶƚĂŐĞŶĐŝĞƐ ĞǆĐĞƉƚĨŽƌDD^ĨŝůŝŶŐƐǁŚŝĐŚƐŚĂůůƌĞŵĂŝŶƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚǇŽĨƚŚĞŝƚǇ͖ ϯ͘ϭ͘ϭϯ ƉƌŽǀŝĚĞŝƚǇǁŝƚŚƐƚĂŶĚĂƌĚĐŽŵƉƵƚĞƌŝǌĞĚƌĞƉŽƌƚƐ͕ŝŶĐůƵĚŝŶŐ͕ďƵƚŶŽƚ ůŝŵŝƚĞĚƚŽ͕ŵŽŶƚŚůǇůŽƐƐƌƵŶĂŶĚƉĂǇŵĞŶƚƌĞŐŝƐƚĞƌƐ͕ĂŶĚƐƚĂƚŝƐƚŝĐĂůƌĞƉŽƌƚƐ͖ŝĨ ĂĚĚŝƚŝŽŶĂů ƌĞƉŽƌƚƐ͕ ƐƉĞĐŝĂů ƌĞƉŽƌƚƐ͕ ĐŽŶǀĞƌƐŝŽŶ Žƌ ƐƉĞĐŝĂů ƉƌŽŐƌĂŵŵŝŶŐ Žƌ ŝŶĨŽƌŵĂƚŝŽŶŝƐŶĞĞĚĞĚ͕ƚŚĞĐŽƐƚƉĂǇĂďůĞďǇŝƚǇĨŽƌƐƵĐŚĂĚĚŝƚŝŽŶĂůŝƚĞŵƐǁŝůůďĞ ůŝŵŝƚĞĚƚŽĐŽƐƚƐĂĐƚƵĂůůǇŝŶĐƵƌƌĞĚďǇ/,/ƚŽƉƌĞƉĂƌĞƐƵĐŚŝƚĞŵƐ͖ŝƚǇŵĂǇƐƉĞĐŝĨǇ ĨƌŽŵƚŚĞůŝƐƚŽĨĂǀĂŝůĂďůĞƌĞƉŽƌƚƐǁŚŝĐŚƌĞƉŽƌƚƐǁŝůůďĞƐĞŶƚƚŽƚŚĞŵŽŶĂƌĞŐƵůĂƌ ďĂƐŝƐ͖ ϯ͘ϭ͘ϭϰ ƉƌŽǀŝĚĞŝŶŝƚŝĂůĐůĂŝŵƐĨŽƌŵƐƉĂĐŬĞƚƐĂƐĚĞĞŵĞĚĂƉƉƌŽƉƌŝĂƚĞďǇ/,/ ĨŽƌĞĨĨŝĐŝĞŶƚĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨůĂŝŵƐŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵ͖ ĂŶĚ ϯ͘ϭ͘ϭϱ ĐŽŵƉůǇ ǁŝƚŚ ŝƚǇ͛Ɛ ƐĞƌǀŝĐĞ ŝŶƐƚƌƵĐƚŝŽŶ ŐƵŝĚĞůŝŶĞƐ ĨŽƌ ƚŚĞ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨƚŚĞ^ĞƌǀŝĐĞƐĂƐƐƵĐŚ^ĞƌǀŝĐĞƐĂƌĞƐĞƚĨŽƌƚŚŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͘ ϯ͘Ϯ͘ DĞĚŝĐĂůǆƉĞŶƐĞŽŶƚƌŽůĂŶĚDĂŶĂŐĞĚĂƌĞ͘/,/ƐŚĂůůƉƌŽǀŝĚĞŝŶĨŽƌŵĂƚŝŽŶ ƚŽŝůůŽƌŝŶũƵƌĞĚůĂŝŵĂŶƚƐƌĞŐĂƌĚŝŶŐƚŚĞďĞŶĞĨŝƚƐĂǀĂŝůĂďůĞƵŶĚĞƌƚŚĞ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵ ĂŶĚĐŽƵŶƐĞůĂŶǇůĂŝŵĂŶƚƐǁŚŽǁŝƐŚƚŽŽďƚĂŝŶƚŚĞĂƐƐŝƐƚĂŶĐĞŽĨƚŚŝƌĚƉĂƌƚŝĞƐĨŽƌǁŽƌŬͲ ƌĞůĂƚĞĚŝůůŶĞƐƐĞƐŽƌŝŶũƵƌŝĞƐ͘ ϯ͘ϯ͘ ůĂŝŵƐŽƵŶƐĞůŝŶŐ͘/,/ƐŚĂůů͗ ϯ͘ϯ͘ϭ ĐŽŶƐƵůƚ ǁŝƚŚ ŬĞǇ ƉĞƌƐŽŶŶĞů ŽĨ ŝƚǇ ŽŶ ƚŚĞ ĞƐƚĂďůŝƐŚŵĞŶƚ ĂŶĚ ĐŽŽƌĚŝŶĂƚŝŽŶŽĨŶĞĐĞƐƐĂƌǇƉƌŽĐĞĚƵƌĞƐĂŶĚƉƌĂĐƚŝĐĞƐƚŽŵĞĞƚĂŶǇŶĞĞĚƐŽĨŝƚǇǁŝƚŚ ƌĞƐƉĞĐƚƚŽƚŚĞĂĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚƉƌŽĐĞƐƐŝŶŐŽĨůĂŝŵƐ͖ ϯ͘ϯ͘Ϯ ƉĂƌƚŝĐŝƉĂƚĞŝŶƚŚĞŽƌŝĞŶƚĂƚŝŽŶŽĨŝƚǇ͛ƐƉĞƌƐŽŶŶĞůǁŚŽĂƌĞĚŝƌĞĐƚůǇ ŽƌŝŶĚŝƌĞĐƚůǇŝŶǀŽůǀĞĚŝŶƚŚĞƉƌŽĐĞƐƐŝŶŐŽĨůĂŝŵƐ͖ ϯ͘ϯ͘ϯ ƉƌŽǀŝĚĞŝŶĨŽƌŵĂƚŝŽŶŽŶĐŚĂŶŐĞƐŽƌƉƌŽƉŽƐĞĚĐŚĂŶŐĞƐŝŶůĞŐŝƐůĂƚŝŽŶ͕ ƌƵůĞƐŽƌƌĞŐƵůĂƚŝŽŶƐĂĨĨĞĐƚŝŶŐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚǇŽĨŝƚǇǁŝƚŚƌĞƐƉĞĐƚƚŽůĂŝŵƐ͖ĂŶĚ ϯ͘ϯ͘ϰ ƌĞǀŝĞǁƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵƉĞƌŝŽĚŝĐĂůůǇ ǁŝƚŚ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐ ŽĨ ŝƚǇ ŝŶ ŽƌĚĞƌ ƚŽ ŝĚĞŶƚŝĨǇ ƉƌŽďůĞŵƐ ĂŶĚƌĞĐŽŵŵĞŶĚ ĐŽƌƌĞĐƚŝǀĞĂĐƚŝŽŶ͘ ϯ͘ϯ͘ϱ ƉƌŽǀŝĚĞ ƚƌĂŝŶŝŶŐ ƐĞƐƐŝŽŶƐ ĂŶŶƵĂůůǇ ƚŽ ƚŚĞ ŝƚǇ ŝŶĐůƵĚŝŶŐ ĂƐŝĐ tŽƌŬĞƌƐ͛ŽŵƉĞŶƐĂƚŝŽŶ'ƵŝĚĞůŝŶĞƐĂŶĚ&ƌĂƵĚĞƚĞĐƚŝŽŶ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϵ ϯ͘ϰ͘ DĞĚŝĐĂůŽŶƚƌŽů^ĞƌǀŝĐĞƐ͘/,/ƐŚĂůů͗ ϯ͘ϰ͘ϭ ĂƐƐŝƐƚ ŝƚǇ͕ ǁŚĞƌĞ ƉĞƌŵŝƚƚĞĚ͕ ŝŶ ƚŚĞ ƐĞůĞĐƚŝŽŶ ŽĨ ;ĂͿ Ă ŵĞĚŝĐĂů ƉƌŽǀŝĚĞƌŶĞƚǁŽƌŬĂŶĚƉĂŶĞůŽĨƉŚǇƐŝĐŝĂŶƐŽƌŽƚŚĞƌŚĞĂůƚŚĐĂƌĞƉƌŽǀŝĚĞƌƐƚŽŝŶŝƚŝĂůůǇ ƚƌĞĂƚ ůĂŝŵĂŶƚƐ ĂŶĚ ;ďͿ Ă ŵĞĚŝĐĂů ƉƌŽǀŝĚĞƌ ŶĞƚǁŽƌŬ ĂŶĚ ƉĂŶĞů ŽĨ ŵĞĚŝĐĂů ƐƉĞĐŝĂůŝƐƚƐƚŽƉƌŽǀŝĚĞůŽŶŐͲƚĞƌŵŽƌƐƉĞĐŝĂůƚǇĐĂƌĞ͖ ϯ͘ϰ͘Ϯ ǁŚĞƌĞĂƉƉƌŽƉƌŝĂƚĞ͕ĂƐƐŝƐƚŝƚǇǁŝƚŚƚŚĞŝŶƚĞƌƉƌĞƚĂƚŝŽŶŽĨŵĞĚŝĐĂů ƌĞƉŽƌƚƐƚŽĐŽŶƐŝĚĞƌƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐƵŶĚĞƌǁŚŝĐŚĂŶŝůůŽƌŝŶũƵƌĞĚůĂŝŵĂŶƚ͕ǁŚŽ ĚĞƐŝƌĞƐƚŽĚŽƐŽ͕ĐŽƵůĚƌĞƚƵƌŶƚŽǁŽƌŬŝŶƚŚĞƐŚŽƌƚĞƐƚƉĞƌŝŽĚŽĨƚŝŵĞ͖ ϯ͘ϰ͘ϯ ĞŶĚĞĂǀŽƌƚŽƵƚŝůŝǌĞƚĞůĞƉŚŽŶŝĐŵĞĚŝĐĂůĐĂƐĞŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐ ǁŚĞŶǁĂƌƌĂŶƚĞĚƵƐŝŶŐ/,/͛ƐDĂŶĂŐĞĚĂƌĞŝǀŝƐŝŽŶ͕/ŶƚĞƌDĞĚ͖ĂŶĚ ϯ͘ϰ͘ϰ ĂĚũƵĚŝĐĂƚĞ ŵĞĚŝĐĂůͬƉƌŽǀŝĚĞƌ ďŝůůŝŶŐƐ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ Ă ĨĞĞ ƐĐŚĞĚƵůĞ ĐŽŵƉĂƌĂďůĞ ƚŽ ƚŚĞ KĨĨŝĐŝĂů DĞĚŝĐĂů &ĞĞ ^ĐŚĞĚƵůĞ Žƌ ŝƚǇ͛Ɛ ĚŝƌĞĐƚ ĐŽŶƚƌĂĐƚ;ƐͿǁŝƚŚƉƌŽǀŝĚĞƌ;ƐͿƵƐŝŶŐ/ŶƚĞƌDĞĚ͘ ϯ͘ϱ͘ DĞĚŝĐĂůDĂŶĂŐĞŵĞŶƚ^ĞƌǀŝĐĞƐ͘/,/͕ƚŚƌŽƵŐŚŝƚƐDĂŶĂŐĞĚĂƌĞŝǀŝƐŝŽŶ͕ /ŶƚĞƌDĞĚŽƐƚŽŶƚĂŝŶŵĞŶƚƐĞƌǀŝĐĞƐ͕ƐŚĂůůƉƌŽǀŝĚĞ͗ ϯ͘ϱ͘ϭ ŶĞǁůĂŝŵŝŶƚĂŬĞĂŶĚƚƌŝĂŐĞƐĞƌǀŝĐĞƐ͖ ϯ͘ϱ͘Ϯ WWKŶĞƚǁŽƌŬĚŝƌĞĐƚŝŽŶĂŶĚŶĞŐŽƚŝĂƚŝŽŶ͖ ϯ͘ϱ͘ϯ ƵƚŝůŝǌĂƚŝŽŶƌĞǀŝĞǁ͖ ϯ͘ϱ͘ϰ ƐƵƌŐŝĐĂůƉƌĞͲĐĞƌƚŝĨŝĐĂƚŝŽŶ͖ ϯ͘ϱ͘ϱ ĚŝƐĂďŝůŝƚǇŵĂŶĂŐĞŵĞŶƚ͖ĂŶĚ ϯ͘ϱ͘ϲ ƚĞůĞŵĞĚŝĐŝŶĞƉƌŽŐƌĂŵŝĨĂƉƉůŝĐĂďůĞ͘ ϯ͘ϲ͘ ŝůůZĞǀŝĞǁ^ĞƌǀŝĐĞƐ͘/,/͕ƚŚƌŽƵŐŚŝƚƐDĂŶĂŐĞĚĂƌĞŝǀŝƐŝŽŶ͕/ŶƚĞƌDĞĚŽƐƚ ŽŶƚĂŝŶŵĞŶƚƐĞƌǀŝĐĞƐ͕ƐŚĂůů͗ ϯ͘ϲ͘ϭ ƉƌŽǀŝĚĞůŝŶĞͲďǇͲůŝŶĞĂƵĚŝƚŽĨĂůůĐŽĚĞƐďĞŝŶŐďŝůůĞĚ͖ĂƵƚŽĂĚũƵĚŝĐĂƚŝŽŶ͖ ŽƵƚƉĂƚŝĞŶƚĂƵĚŝƚƐ͕ŝŶĐůƵĚŝŶŐĂůůĂŵďƵůĂƚŽƌǇƐƵƌŐŝĐĂůƐĞƌǀŝĐĞƐ͖ŝŶƉĂƚŝĞŶƚĨĞĞƐĐŚĞĚƵůĞ ĂƵĚŝƚƐĂŶĚƌĞǀŝĞǁƐ͖ŵĞĚŝĐĂůͬůĞŐĂůďŝůůƐĂŶĚĂŶĐŝůůĂƌǇƐĞƌǀŝĐĞƐƚŚĂƚŵĂǇŶĞĞĚƚŽďĞ ƌĞƉŽƌƚĞĚƚŽĂƌĞŐƵůĂƚŽƌǇĂŐĞŶĐǇƐƵĐŚĂƐŝŶǀŽŝĐĞƐĨŽƌƚƌĂŶƐůĂƚŝŽŶĂŶĚŝŶƚĞƌƉƌĞƚŝŶŐ ƐĞƌǀŝĐĞƐ͕ĐŽƉǇƐĞƌǀŝĐĞĂŶĚŽƚŚĞƌƐĞƌǀŝĐĞƐƌĞƋƵŝƌĞĚďǇƌĞŐƵůĂƚŽƌǇĂŐĞŶĐŝĞƐ͖ĂŶĚ ϯ͘ϲ͘Ϯ ĐŽŵƉůǇǁŝƚŚ^ƚĂƚƵƚŽƌǇƌĞŐƵůĂƚŝŽŶďǇŝŶƚĞŐƌĂƚŝŶŐĚĂƚĂĨĞĞĚƐĨƌŽŵƚŚĞďŝůů ƌĞǀŝĞǁĂƉƉůŝĐĂƚŝŽŶĂŶĚĐůĂŝŵƐŵĂŶĂŐĞŵĞŶƚƐǇƐƚĞŵŝŶƚŽƚŚĞĂƉƉůŝĐĂďůĞũƵƌŝƐĚŝĐƚŝŽŶ͛Ɛ ĞůĞĐƚƌŽŶŝĐĚĂƚĂŝŶƚĞƌĨĂĐĞ;/ͿĨĞĞĚƚŽĐŽŵƉůǇǁŝƚŚƚŚĞ/ŵĂŶĚĂƚĞĨŽƌŵĞĚŝĐĂů ďŝůůͬƉĂǇŵĞŶƚƐ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϬ ϯ͘ϳ͘ DĞĚŝĐĂƌĞ͕ DĞĚŝĐĂŝĚ ĂŶĚ ^ƚĂƚĞ ŚŝůĚƌĞŶ͛Ɛ ,ĞĂůƚŚ /ŶƐƵƌĂŶĐĞ WƌŽŐƌĂŵ ǆƚĞŶƐŝŽŶĐƚŽĨϮϬϬϳ;DD^Ϳ^ĞĐƚŝŽŶϭϭϭDĂŶĚĂƚŽƌǇZĞƉŽƌƚŝŶŐ͘ ϯ͘ϳ͘ϭ dŽĂƐƐŝƐƚŝƚǇŝŶĨƵůĨŝůůŝŶŐŝƚƐŵĂŶĚĂƚŽƌǇDĞĚŝĐĂƌĞďĞŶĞĨŝĐŝĂƌǇƌĞƉŽƌƚŝŶŐ ŽďůŝŐĂƚŝŽŶƐƵŶĚĞƌƚŚĞDD^^ĞĐƚŝŽŶϭϭϭĂƐƐĞƚĨŽƌƚŚŝŶϰϮh^ϭϯϵ;ďͿ;ϳͿΘ;ϴͿĂŶĚƚŚĞ ĞŶƚĞƌĨŽƌDĞĚŝĐĂƌĞ^ĞƌǀŝĐĞƐ;D^ͿhƐĞƌ'ƵŝĚĞƉƵďůŝƐŚĞĚDĂƌĐŚϭϲ͕ϮϬϬϵĂŶĚĂƐ ĂŵĞŶĚĞĚĂŶĚƌĞǀŝƐĞĚƉĞƌŝŽĚŝĐĂůůǇďǇD^͕/,/ǁŝůůƉĞƌĨŽƌŵƚŚĞĨŽůůŽǁŝŶŐƌĞƉŽƌƚŝŶŐ ƐĞƌǀŝĐĞƐ͗ Ă͘ /,/ǁŝůůĞƐƚĂďůŝƐŚĂŶĞůĞĐƚƌŽŶŝĐŝŶƚĞƌĨĂĐĞǁŝƚŚD^ƚŽ ĐĂƉƚƵƌĞĂŶĚƌĞƉŽƌƚĚĂƚĂŝŶƚŚĞĨŽƌŵĂƚƉƌĞƐĐƌŝďĞĚďǇƚŚĞD^hƐĞƌ'ƵŝĚĞ ^ƉĞĐŝĨŝĐĂƚŝŽŶƐ͘ ď͘ /,/ǁŝůůƌĞƉŽƌƚĚŝƌĞĐƚůǇƚŽD^ŽŶďĞŚĂůĨŽĨŝƚǇĂƐĂŶ ĐĐŽƵŶƚĞƐŝŐŶĞĞ;ƌĞƉŽƌƚŝŶŐĂŐĞŶƚͿ͕ĂƐƐƵĐŚƚĞƌŵŝƐĚĞĨŝŶĞĚŝŶƚŚĞD^ hƐĞƌ'ƵŝĚĞĂƐĂŵĞŶĚĞĚĨƌŽŵƚŝŵĞƚŽƚŝŵĞďǇD^͘ Đ͘ ŝƚǇǁŝůůďĞĐŽŶƐŝĚĞƌĞĚĂZĞƐƉŽŶƐŝďůĞZĞƉŽƌƚŝŶŐŶƚŝƚǇ ;ZZͿĂƐƚŚĂƚƚĞƌŵŝƐĚĞĨŝŶĞĚŝŶƚŚĞD^hƐĞƌ'ƵŝĚĞ͘ŝƚǇǁŝůůďĞ ƌĞƐƉŽŶƐŝďůĞĨŽƌŵĂŝŶƚĂŝŶŝŶŐĂǀĂůŝĚZZ/ĚĞŶƚŝĨŝĐĂƚŝŽŶEƵŵďĞƌĂƐ ĚĞƐĐƌŝďĞĚŝŶƚŚĞD^hƐĞƌ'ƵŝĚĞĂŶĚŝƐĂĐŽŶĚŝƚŝŽŶƉƌĞĐĞĚĞŶƚƚŽ/,/ ƉĞƌĨŽƌŵŝŶŐƚŚĞĚƵƚŝĞƐƵŶĚĞƌƚŚŝƐƐĞĐƚŝŽŶ͘&ĂŝůƵƌĞƚŽŵĂŝŶƚĂŝŶƚŚĞZZ /ĚĞŶƚŝĨŝĐĂƚŝŽŶEƵŵďĞƌǁŝůůƌĞƐƵůƚŝŶ/,/͛ƐŝŶĂďŝůŝƚǇƚŽƉƌŽƉĞƌůǇƌĞƉŽƌƚĐůĂŝŵƐ ŽŶďĞŚĂůĨŽĨŝƚǇ͘/,/ĂƐƐƵŵĞƐŶŽƌĞƐƉŽŶƐŝďŝůŝƚǇĨŽƌŵĂŝŶƚĂŝŶŝŶŐĂǀĂůŝĚ ZZ/ĚĞŶƚŝĨŝĐĂƚŝŽŶEƵŵďĞƌŽŶďĞŚĂůĨŽĨŝƚǇ͘ ϯ͘ϳ͘Ϯ /,/ ǁŝůů ĨƵƌƚŚĞƌ ĂƐƐŝƐƚ ŝƚǇ ďǇ ĐŽůůĞĐƚŝŶŐ ƚŚĞ ůĞŐĂů ŶĂŵĞ͕ ƐŽĐŝĂů ƐĞĐƵƌŝƚǇ ŶƵŵďĞƌ͕ ŐĞŶĚĞƌ͕ ĚĂƚĞ ŽĨ ďŝƌƚŚ ŽĨ ƚŚĞ DĞĚŝĐĂƌĞ ĞŶĞĨŝĐŝĂƌǇ͖ ƉƌĞƉĂƌĞ ƌĞƋƵŝƌĞĚĚĂƚĂĨŝůĞƐĂŶĚƐƵďŵŝƚƚŽD^ĂŵŽŶƚŚůǇĞůŝŐŝďŝůŝƚǇƋƵĞƌǇĂŶĚƐƵďŵŝƚĂ ƋƵĂƌƚĞƌůǇƌĞƉŽƌƚǁŝƚŚƚŚĞĂƉƉƌŽƉƌŝĂƚĞĐůĂŝŵƐĂƐĚĞĨŝŶĞĚŝŶƚŚĞD^hƐĞƌ'ƵŝĚĞŽŶ ƚŚĞZZ͛ƐĚĞƐŝŐŶĂƚĞĚƌĞƉŽƌƚŝŶŐŐƌŽƵƉ͘ ϯ͘ϳ͘ϯ /,/ǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĨŝŶĞƐĂƐƐĞƐƐĞĚƚŽŝƚǇŝŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚ ƚŚĞDD^ďĞŶĞĨŝĐŝĂƌǇƌĞƉŽƌƚŝŶŐƌĞƋƵŝƌĞŵĞŶƚƚŚĂƚƌĞůĂƚĞƚŽ/,/͛ƐŶĞŐůŝŐĞŶƚĂĐƚƐ ŽƌŽŵŝƐƐŝŽŶƐĞǆĐĞƉƚƚŽƚŚĞĞǆƚĞŶƚƚŚĂƚ͗ Ă͘ ^ƵĐŚĨŝŶĞƐĂŶĚƉĞŶĂůƚŝĞƐĂƌĞƚŚĞĚŝƌĞĐƚƌĞƐƵůƚŽĨƐƉĞĐŝĨŝĐ ĚŝƌĞĐƚŝŽŶŐŝǀĞŶďǇŝƚǇĂŶĚͬŽƌŝƚƐĂŐĞŶƚŽƌƚŚĞĂĐƚŝŽŶƐŽƌŽŵŝƐƐŝŽŶƐŽĨŝƚǇ ĂŶĚͬŽƌŝƚƐĂŐĞŶƚ͖Žƌ ď͘ /,/ĚŝĚŶŽƚƌĞĐĞŝǀĞŝŶĨŽƌŵĂƚŝŽŶŽƌƌĞĐĞŝǀĞĚŝŶĐŽƌƌĞĐƚ ŝŶĨŽƌŵĂƚŝŽŶĨƌŽŵŝƚǇƚŚĂƚŝƐĞƐƐĞŶƚŝĂůƚŽƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞĚƵƚŝĞƐƐĞƚĨŽƌƚŚ ŚĞƌĞŝŶŝŶĂƚŝŵĞůǇŵĂŶŶĞƌƐŽĂƐƚŽďĞĂďůĞƚŽĐŽŵƉůǇǁŝƚŚƚŚĞƚĞƌŵƐŽĨƚŚŝƐ ŐƌĞĞŵĞŶƚ͘ ϯ͘ϳ͘ϰ WƌŽǀŝĚĞĞǀŝĚĞŶĐĞŽĨYƵĂƌƚĞƌůǇƌĞƉŽƌƚƐƵďŵŝƚƚĞĚƚŽD^ŽŶďĞŚĂůĨ ŽĨ/dz͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϭ ϯ͘ϴ͘ ĚĚŝƚŝŽŶĂů^ĞƌǀŝĐĞƐ͘/,/ƐŚĂůůƉĞƌŝŽĚŝĐĂůůǇŵĞĞƚǁŝƚŚŝƚǇĂŶĚ/,/ƐŚĂůůĂŐƌĞĞ ƚŽƉƌŽǀŝĚĞƐƵĐŚĂĚĚŝƚŝŽŶĂůĐůĂŝŵĂĚŵŝŶŝƐƚƌĂƚŝŽŶƐĞƌǀŝĐĞƐĂƐŵĂǇďĞƌĞƋƵŝƌĞĚĨƌŽŵƚŝŵĞƚŽ ƚŝŵĞĨŽƌƐƵĐŚĂĚĚŝƚŝŽŶĂů^ĞƌǀŝĐĞ&ĞĞƐĂƐŵĂǇďĞĂŐƌĞĞĚƵƉŽŶ͘ ϯ͘ϵ͘ /,/ƐŚĂůůďĞĂǀĂŝůĂďůĞƚŽĚŝƐĐƵƐƐƚŚĞWƌŽŐƌĂŵǁŝƚŚ/dzŵŽŶƚŚůǇĂŶĚƚŽ ƉƌŽǀŝĚĞƐƚĂŶĚĂƌĚůŽƐƐƌĞƉŽƌƚƐĂƚĞĂĐŚŽĨƚŚĞƐĞŵĞĞƚŝŶŐƐĂƐŵĂǇďĞƌĞĂƐŽŶĂďůǇƌĞƋƵĞƐƚĞĚ͘ ϰ͘ ŝƚǇKďůŝŐĂƚŝŽŶƐƚŽ/,/͘ŝƚǇĂŐƌĞĞƐƚŽƵŶĚĞƌƚĂŬĞĂŶĚƉĞƌĨŽƌŵĂůůŽĨƚŚĞĨŽůůŽǁŝŶŐ ƚĂƐŬƐ͗ ϰ͘ϭ͘ ŝƚǇƐŚĂůůƉĂǇ/ŶƚĞƌĐĂƌĞƚŚĞĨĞĞƐĂŶĚƌĞůĂƚĞĚĞǆƉĞŶƐĞƐĂƐƉƌŽǀŝĚĞĚŚĞƌĞŝŶ ƉĞƌƚŚĞƚĞƌŵƐŽĨǆŚŝďŝƚ&ĞĞ^ĐŚĞĚƵůĞĂƚƚĂĐŚĞĚŚĞƌĞƚŽĂŶĚŝŶĐŽƌƉŽƌĂƚĞĚŚĞƌĞŝŶ͘ ϰ͘Ϯ͘ ĞŶĐŽƵƌĂŐĞ Ăůů ĞŵƉůŽǇĞĞƐ ƚŽ ƉƌŽŵƉƚůǇ ƌĞƉŽƌƚ Ăůů ƌĞůĞǀĂŶƚ ŝŶũƵƌŝĞƐ Žƌ ŝůůŶĞƐƐĞƐŝŶǁƌŝƚŝŶŐƚŽ/,/͖ ϰ͘ϯ͘ ƉƌŽŵƉƚůǇĨŽƌǁĂƌĚƚŚĞĨŽƌŵŵƉůŽǇĞƌ͛ƐZĞƉŽƌƚŽĨ/ŶũƵƌǇŽƌ/ůůŶĞƐƐŽƌƐŝŵŝůĂƌ ĚŽĐƵŵĞŶƚ͕ĂůůůĞƚƚĞƌƐ͕ĐŽƌƌĞƐƉŽŶĚĞŶĐĞ͕ŽƌĂŶǇŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ͕ǁŚĞƚŚĞƌŽƌĂůŽƌǁƌŝƚƚĞŶ͕ ƌĞĐĞŝǀĞĚďǇŝƚǇǁŚŝĐŚŝƐŽƌĐŽƵůĚďĞƌĞůĞǀĂŶƚƚŽƚŚĞĞĨĨŝĐŝĞŶƚĂŶĚƉƌŽƉĞƌŚĂŶĚůŝŶŐŽĨĂŶǇ ůĂŝŵ͖ ϰ͘ϰ͘ ĨƵůůǇĐŽŽƉĞƌĂƚĞǁŝƚŚ/,/ŝŶƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͖ ϰ͘ϱ͘ ƉƌŽǀŝĚĞ/,/ǁŝƚŚĂŶǇŶĞĐĞƐƐĂƌǇĚĂƚĂǁŝƚŚŝŶŝƚǇ͛ƐƉŽƐƐĞƐƐŝŽŶŽƌĐŽŶƚƌŽůƚŽ ĞŶĂďůĞ/,/ƚŽƉĞƌĨŽƌŵƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͖ĂŶĚ ϰ͘ϲ͘ ĞƐƚĂďůŝƐŚĂǌĞƌŽͲďĂůĂŶĐĞĂĐĐŽƵŶƚƚŽƉĂǇĐůĂŝŵƌĞůĂƚĞĚĞǆƉĞŶƐĞƐŝŶĂƚŝŵĞůǇ ŵĂŶŶĞƌ͘ ϰ͘ϳ͘ ŝƚǇƐŚĂůůƉĂƌƚŝĐŝƉĂƚĞŝŶ/,/͛ƐWƌĞƐĐƌŝƉƚŝŽŶDĂŶĂŐĞŵĞŶƚĞŶĞĨŝƚƉƌŽŐƌĂŵ͕Žƌ ĐŽŶƚƌĂĐƚĚŝƌĞĐƚůǇǁŝƚŚĂŶŽƚŚĞƌƉƌĞƐĐƌŝƉƚŝŽŶďĞŶĞĨŝƚŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞ͘/ĨĐŽŶƚƌĂĐƚŝŶŐ ĚŝƌĞĐƚůǇǁŝƚŚĂŶŽƚŚĞƌƐĞƌǀŝĐĞ͕ƐƵĐŚƉƌŽǀŝĚĞƌƐŚĂůůďĞĐĂƉĂďůĞŽĨƉƌŽǀŝĚŝŶŐĞůĞĐƚƌŽŶŝĐĚĂƚĂ ǁŚŝĐŚŝƐĐŽŵƉĂƚŝďůĞǁŝƚŚ/,/͛ƐĞůĞĐƚƌŽŶŝĐĐůĂŝŵƐƌĞĐŽƌĚƐǇƐƚĞŵ͘ůŝĞŶƚƐŚĂůůďĞĂƌƚŚĞĐŽƐƚ ŽĨƐǇƐƚĞŵŝŶƚĞŐƌĂƚŝŽŶĂŶĚƚŚĞďŝůůƌĞǀŝĞǁĨĞĞǁŝůůďĞĂƉƉůŝĞĚƚŽĂůůƉƌĞƐĐƌŝƉƚŝŽŶďŝůůƐ͘ ϰ͘ϳ͘ϭ /ĨŝƚǇŝƐƉĂƌƚŝĐŝƉĂƚŝŶŐŝŶ/,/͛ƐWDƉƌŽŐƌĂŵ͕ƉƌĞƐĐƌŝƉƚŝŽŶďŝůůƐĨŽƌ ƉĂƌƚŝĐŝƉĂƚŝŶŐƉŚĂƌŵĂĐŝĞƐƐŚĂůůŶŽƚďĞƐƵďũĞĐƚƚŽĂďŝůůƌĞǀŝĞǁĨĞĞƉƌŽǀŝĚĞĚƚŚĞWD EĞƚǁŽƌŬŝƐ/ŶƚĞƌĐĂƌĞ͛ƐƉƌĞĨĞƌƌĞĚǀĞŶĚŽƌŝŶǁŚŝĐŚĐĂƐĞƚŚĞ/dzƐŚĂůůƌĞĐĞŝǀĞƚŚĞŶĞƚǁŽƌŬ ĚŝƐĐŽƵŶƚĨŽƌƚŚĞĚƌƵŐĐŽƐƚĂŶĚĂůůŽǁĂďůĞĚŝƐƉĞŶƐŝŶŐĂůůŽǁĂŶĐĞ͘ ϰ͘ϳ͘Ϯ /,/ƐŚĂůůĞŶĚĞĂǀŽƌƚŽĐŽŶǀĞƌƚŽƵƚŽĨŶĞƚǁŽƌŬƉƌĞƐĐƌŝƉƚŝŽŶďŝůůƐďǇ ƌĞĨĞƌƌŝŶŐŶŽŶͲƉĂƌƚŝĐŝƉĂƚŝŶŐƉŚĂƌŵĂĐŝĞƐƚŽƚŚĞWDEĞƚǁŽƌŬ͘ ϱ͘ ŝƐĐƌĞƚŝŽŶĂƌǇŝƐďƵƌƐĞŵĞŶƚƵƚŚŽƌŝƚǇ>ŝŵŝƚŽĨ/,/͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϮ ϱ͘ϭ͘ ŝƐďƵƌƐĞŵĞŶƚƐ͘dŚĞĂŐŐƌĞŐĂƚĞůŝŵŝƚŽŶĂŶǇĚŝƐĐƌĞƚŝŽŶĂƌǇƉĂǇŵĞŶƚďǇ/,/ ĨŽƌĂůĂŝŵƚŽŐĞƚŚĞƌǁŝƚŚƚŚĞŝŶĚŝǀŝĚƵĂůůůŽĐĂƚĞĚ>ŽƐƐǆƉĞŶƐĞƐƐŚĂůůďĞΨϱ͕ϬϬϬ͘ŝƚǇŵĂǇ ŝŶĐƌĞĂƐĞƚŚŝƐĂŵŽƵŶƚĂƚĂŶǇƚŝŵĞƵƉŽŶŐŝǀŝŶŐƉƌŝŽƌǁƌŝƚƚĞŶŶŽƚŝĐĞƚŽ/,/͘/ƚŝƐĂŐƌĞĞĚƚŚĂƚ /,/ƐŚĂůůŚĂǀĞĨƵůůĨŝŶĂŶĐŝĂůĂƵƚŚŽƌŝƚǇĂŶĚĐŽŶƚƌŽůŝŶĂůůŵĂƚƚĞƌƐƉĞƌƚĂŝŶŝŶŐƚŽƚŚĞƉĂǇŵĞŶƚ͕ ƉƌŽĐĞƐƐŝŶŐ͕ŝŶǀĞƐƚŝŐĂƚŝŽŶĂŶĚĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨůĂŝŵƐǁŝƚŚŝŶƚŚĞůŝŵŝƚƐĞƐƚĂďůŝƐŚĞĚďǇƚŚŝƐ ^ĞĐƚŝŽŶ͘ ϱ͘Ϯ͘ ^ĞƚƚůĞŵĞŶƚƵƚŚŽƌŝƚǇ͘/,/ƐŚĂůůƌĞƋƵĞƐƚĂƵƚŚŽƌŝǌĂƚŝŽŶĨƌŽŵŝƚǇƉƌŝŽƌƚŽĂŶǇ ƐĞƚƚůĞŵĞŶƚ͘ ϱ͘ϯ͘ /,/&ƵŶĚƐ͘/ƚŝƐĞǆƉƌĞƐƐůǇƵŶĚĞƌƐƚŽŽĚƚŚĂƚ/,/ƐŚĂůůŶŽƚďĞƌĞƋƵŝƌĞĚƚŽ;ĂͿ ĂĚǀĂŶĐĞ/,/͛ƐŽǁŶĨƵŶĚƐƚŽƉĂǇůĂŝŵƐŽƌůůŽĐĂƚĞĚ>ŽƐƐĚũƵƐƚŵĞŶƚǆƉĞŶƐĞƐĨŽƌĂŶǇ YƵĂůŝĨŝĞĚůĂŝŵŚĞƌĞƵŶĚĞƌŽƌ;ďͿƉĞƌĨŽƌŵĂŶǇ^ĞƌǀŝĐĞƐŚĞƌĞƵŶĚĞƌŝĨŝƚǇĨĂŝůƐƚŽƉƌŽǀŝĚĞ ĂĚĞƋƵĂƚĞĨƵŶĚƐŽƌĨƵŶĚƐŝŶĂƚŝŵĞůǇŵĂŶŶĞƌĂƐŚĞƌĞŝŶƐĞƚĨŽƌƚŚŽƌŝĨĨƵŶĚƐƉƌĞǀŝŽƵƐůǇ ƉƌŽǀŝĚĞĚďǇŽƌŽŶďĞŚĂůĨŽĨŝƚǇĂƌĞƐĞŝǌĞĚ͕ĨƌŽǌĞŶŽƌŽƚŚĞƌǁŝƐĞƵŶĂǀĂŝůĂďůĞƚŽ/,/ƚŽĂůůŽǁ ƌĞƋƵŝƌĞĚƉĂǇŵĞŶƚƐƚŽďĞŵĂĚĞƚŝŵĞůǇŽŶĂĐĐŽƵŶƚŽĨƚŚĞďĂŶŬƌƵƉƚĐǇŽƌƌĞĐĞŝǀĞƌƐŚŝƉŽƌ ŽƚŚĞƌŝŶƐŽůǀĞŶĐǇƉƌŽĐĞĞĚŝŶŐŽĨŝƚǇŽƌ/ŶƐƵƌĞƌ͕ŝŶĐĂƐĞƐǁŚĞƌĞ/ŶƐƵƌĞƌĨƵŶĚƐĐůĂŝŵĂĐĐŽƵŶƚ͕ /,/ǁŝůůŚĂǀĞŶŽŽďůŝŐĂƚŝŽŶƚŽƉĞƌĨŽƌŵĂŶǇĐůĂŝŵƐĞƌǀŝĐĞƐŽƌƉĂǇŵĞŶƚƐĚƵƌŝŶŐĂŶǇƉĞƌŝŽĚ ŽĨƵŶĚĞƌĨƵŶĚŝŶŐ͘ ϲ͘ dĞƌŵŝŶĂƚŝŽŶĂŶĚĂŶĐĞůůĂƚŝŽŶ ϲ͘ϭ͘ dĞƌŵŝŶĂƚŝŽŶ͘ ϲ͘ϭ͘ϭ ƌĞĂĐŚ͘/Ĩ/,/ŽƌŝƚǇĨĂŝůƐƚŽĐŽŵƉůǇǁŝƚŚŽƌƉĞƌĨŽƌŵǁŚĞŶĚƵĞĂŶǇ ƚĞƌŵŽƌĐŽŶĚŝƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕ƚŚĞŽƚŚĞƌƉĂƌƚǇƐŚĂůůŶŽƚŝĨǇƚŚĞĚĞĨĂƵůƚŝŶŐ ƉĂƌƚǇŽĨŝƚƐĚĞĨĂƵůƚŝŶǁƌŝƚŝŶŐ͕ĂŶĚƚŚĞĚĞĨĂƵůƚŝŶŐƉĂƌƚǇƐŚĂůůŚĂǀĞŶŝŶĞƚǇĚĂǇƐƚŽ ĐƵƌĞƚŚĞĚĞĨĂƵůƚ͖ƉƌŽǀŝĚĞĚ͕ŚŽǁĞǀĞƌ͕ŶŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞĨŽƌĞŐŽŝŶŐ͕ŝƚǇƐŚĂůůďĞ ƌĞƋƵŝƌĞĚƚŽĐƵƌĞĂŶǇĚĞĨĂƵůƚƌĞůĂƚŝŶŐƚŽƚŚĞƉĂǇŵĞŶƚŽĨ^ĞƌǀŝĐĞ&ĞĞƐǁŝƚŚŝŶƚŚŝƌƚǇ ĚĂǇƐŽĨŝƚƐĚƵĞĚĂƚĞ͘/ĨƚŚĞĚĞĨĂƵůƚŝƐŶŽƚƐŽĐƵƌĞĚƚŽĂƌĞĂƐŽŶĂďůĞĚĞŐƌĞĞ͕ƚŚĞŶŽŶͲ ĚĞĨĂƵůƚŝŶŐƉĂƌƚǇŵĂǇĚĞĐůĂƌĞ͕ŝŶǁƌŝƚŝŶŐĂŶĚǁŝƚŚŽƵƚĨƵƌƚŚĞƌŶŽƚŝĐĞ͕ƚŚĂƚƚŚŝƐ ŐƌĞĞŵĞŶƚ ŝƐ ƚĞƌŵŝŶĂƚĞĚ͘ ĚĚŝƚŝŽŶĂůůǇ͕ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ƐŚĂůů ƚĞƌŵŝŶĂƚĞ ŝŵŵĞĚŝĂƚĞůǇ͕ƵƉŽŶǁƌŝƚƚĞŶŶŽƚŝĐĞŽĨĞŝƚŚĞƌƉĂƌƚǇƚŽƚŚĞŽƚŚĞƌƉĂƌƚǇ͕ŝŶƚŚĞĞǀĞŶƚ ŽĨ ƚŚĞ ƉĂƐƐĂŐĞ ŽĨ Ă ůĂǁ Žƌ ƉƌŽŵƵůŐĂƚŝŽŶ ŽĨ Ă ƌĞŐƵůĂƚŝŽŶ Žƌ ĂŶ ĂĐƚŝŽŶ Žƌ ŝŶǀĞƐƚŝŐĂƚŝŽŶďǇĂŶǇƌĞŐƵůĂƚŽƌǇďŽĚǇǁŚŝĐŚǁŽƵůĚ;ĂͿŵĂƚĞƌŝĂůůǇĂŶĚĂĚǀĞƌƐĞůǇ ĂĨĨĞĐƚƐƵĐŚƉĂƌƚǇ͛ƐƌŝŐŚƚƐĂŶĚŽďůŝŐĂƚŝŽŶƐŚĞƌĞƵŶĚĞƌŽƌ;ďͿƉƌŽŚŝďŝƚƚŚĞƌĞůĂƚŝŽŶƐŚŝƉ ďĞƚǁĞĞŶƚŚĞƉĂƌƚŝĞƐŽƌƚŚĞŽƉĞƌĂƚŝŽŶƐŽĨƚŚĞƉĂƌƚŝĞƐŚĞƌĞƵŶĚĞƌ͘ ϲ͘ϭ͘Ϯ tŝƚŚŽƵƚĂƵƐĞ͘ŝƚǇĂŶĚ/,/ǁŝůůŚĂǀĞƚŚĞƌŝŐŚƚƚŽƚĞƌŵŝŶĂƚĞƚŚŝƐ ŐƌĞĞŵĞŶƚǁŝƚŚŽƵƚĐĂƵƐĞďǇŐŝǀŝŶŐŶŝŶĞƚǇ;ϵϬͿĚĂǇƐƉƌŝŽƌǁƌŝƚƚĞŶŶŽƚŝĐĞƚŽƚŚĞ ŽƚŚĞƌƉĂƌƚǇŽĨŝƚƐŝŶƚĞŶƚŝŽŶƚŽƚĞƌŵŝŶĂƚĞƉƵƌƐƵĂŶƚƚŽƚŚŝƐƉƌŽǀŝƐŝŽŶ͕ƐƉĞĐŝĨǇŝŶŐƚŚĞ ĚĂƚĞŽĨƚĞƌŵŝŶĂƚŝŽŶ͘ŝƚǇǁŝůůƉĂǇƚŽ/,/ƚŚĞĐŽŵƉĞŶƐĂƚŝŽŶĞĂƌŶĞĚĨŽƌǁŽƌŬŽƌ ƐĞƌǀŝĐĞƐƉĞƌĨŽƌŵĞĚĂŶĚŶŽƚƉƌĞǀŝŽƵƐůǇƉĂŝĚĨŽƌƚŚƌŽƵŐŚƚŚĞĚĂƚĞŽĨĐůŽƐŝŶŐ͘ ϲ͘ϭ͘ϯ EŽĨĨĞĐƚ͘dĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůŚĂǀĞŶŽĞĨĨĞĐƚŽŶ ƚŚĞƌŝŐŚƚƐĂŶĚŽďůŝŐĂƚŝŽŶƐŽĨƚŚĞƉĂƌƚŝĞƐĂƌŝƐŝŶŐŽƵƚŽĨĂŶǇƚƌĂŶƐĂĐƚŝŽŶŽĐĐƵƌƌŝŶŐŽŶ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϯ ŽƌƉƌŝŽƌƚŽƚŚĞĚĂƚĞŽĨƐƵĐŚƚĞƌŵŝŶĂƚŝŽŶ͘ŝƚǇƐŚĂůůĐŽŶƚŝŶƵĞƚŽĨƵůĨŝůůŝƚƐŽďůŝŐĂƚŝŽŶƐ ƚŽ/,/ƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚƚŚĂƚŝƐƉĞŶĚŝŶŐŽŶƚŚĞĚĂƚĞŽĨƚĞƌŵŝŶĂƚŝŽŶ͘ŶĚ/,/ ƐŚĂůů ĐŽŶƚŝŶƵĞ ƚŽ ĨƵůĨŝůů ŝƚƐ ŽďůŝŐĂƚŝŽŶƐ ƚŽ ŝƚǇ ƵŶĚĞƌ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ƚŚĂƚ ĂƌĞ ƉĞŶĚŝŶŐŽŶƚŚĞĚĂƚĞŽĨƚĞƌŵŝŶĂƚŝŽŶ͘ ϲ͘ϭ͘ϰ ĂŶŬƌƵƉƚĐǇ͘ ŝƚŚĞƌ ƉĂƌƚǇ ŵĂǇ ƚĞƌŵŝŶĂƚĞ ƚŚŝƐ ŐƌĞĞŵĞŶƚ ŝŵŵĞĚŝĂƚĞůǇƵƉŽŶǁƌŝƚƚĞŶŶŽƚŝĐĞƚŽƚŚĞŽƚŚĞƌƉĂƌƚǇŝŶƚŚĞĞǀĞŶƚƚŚĂƚ;ĂͿƚŚĞŽƚŚĞƌ ƉĂƌƚǇĨŝůĞƐĂƉĞƚŝƚŝŽŶĨŽƌƌĞŽƌŐĂŶŝǌĂƚŝŽŶƵŶĚĞƌƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨĨĞĚĞƌĂůďĂŶŬƌƵƉƚĐǇ ůĂǁƐŽƌƐŝŵŝůĂƌůĂǁƐŽĨĂŶŽƚŚĞƌũƵƌŝƐĚŝĐƚŝŽŶ͕;ďͿĂƌĞĐĞŝǀĞƌŽĨĂůůŽƌƐƵďƐƚĂŶƚŝĂůůǇĂůů ŽĨƚŚĞƉƌŽƉĞƌƚǇŽĨƚŚĞŽƚŚĞƌƉĂƌƚǇŝƐĂƉƉŽŝŶƚĞĚĂŶĚŶŽƚƌĞŵŽǀĞĚǁŝƚŚŝŶƚŚŝƌƚǇĚĂǇƐ͕ ;ĐͿ ƚŚĞ ŽƚŚĞƌ ƉĂƌƚǇ͛Ɛ ďƵƐŝŶĞƐƐ ŝƐ ŶŽ ůŽŶŐĞƌ ^ŽůǀĞŶƚ Žƌ ;ĚͿ ƚŚĞŽƚŚĞƌ ƉĂƌƚǇ ŝƐ ĐŽŶǀŝĐƚĞĚŽĨĨƌĂƵĚ͕ĞŵďĞǌǌůĞŵĞŶƚŽƌŽƚŚĞƌ ϲ͘ϭ͘ϱ KƉƚŝŽŶƐŽŶdĞƌŵŝŶĂƚŝŽŶ͘KŶĐĞ^ĞƌǀŝĐĞƐĂƌĞĐŽŵŵĞŶĐĞĚďǇ/,/ ŚĞƌĞƵŶĚĞƌĨŽƌĂůĂŝŵ͕ƚŚĞǇƐŚĂůůĐŽŶƚŝŶƵĞƵŶƚŝůƚŚĞůĂŝŵŝƐĨŝŶĂůůǇĐůŽƐĞĚŽƌƵŶƚŝů ƚŚŝƐŐƌĞĞŵĞŶƚĞǆƉŝƌĞƐ͕ĐĂŶĐĞůƐŽƌƚĞƌŵŝŶĂƚĞƐ͕ǁŚŝĐŚĞǀĞƌŽĐĐƵƌƐĨŝƌƐƚ͘/ŶƚŚĞĞǀĞŶƚ ŽĨĂŶǇĞǆƉŝƌĂƚŝŽŶ͕ĐĂŶĐĞůůĂƚŝŽŶŽƌƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕/,/ǁŝůů͕ƵƉŽŶ ƌĞƋƵĞƐƚĨƌŽŵŝƚǇĂŶĚĂƚŝƚǇ͛ƐĞǆƉĞŶƐĞ͕ƉƌŽŵƉƚůǇƚƌĂŶƐĨĞƌĂůůƉĞŶĚŝŶŐĂŶĚĐůŽƐĞĚ ůĂŝŵƐƚŽĞŝƚŚĞƌŝƚǇŽƌĂŶŽƚŚĞƌĂĚŵŝŶŝƐƚƌĂƚŽƌ͘ ϲ͘ϭ͘ϲ dĞƌŵŝŶĂƚŝŽŶdƌĂŶƐĨĞƌWŽůŝĐǇ͘ Ă͘ WŽƐƚͲdĞƌŵŝŶĂƚŝŽŶWƌŽĐĞƐƐŝŶŐŽĨůĂŝŵƐ͘/ĨƌĞƋƵĞƐƚĞĚďǇŝƚǇ͕ /,/ƐŚĂůůĐŽŶƚŝŶƵĞƚŽƉƌŽĐĞƐƐĂŶǇƋƵĂůŝĨŝĞĚĐůĂŝŵƐŽƌůŽƐƐĞƐƌĞŵĂŝŶŝŶŐŽƉĞŶ ĂƚƚŚĞƚĞƌŵŝŶĂƚŝŽŶƉůƵƐĂŶǇŽƚŚĞƌĐůĂŝŵƐƌĞĐĞŝǀĞĚǁŝƚŚŽĐĐƵƌƌĞŶĐĞĚĂƚĞƐ ƚŚĂƚĨĂůůǁŝƚŚŝŶƚŚĞƉĞƌŝŽĚŽƌƉĞƌŝŽĚƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚƉƌŽǀŝĚĞĚƚŚĂƚƚŚĞ ŝƚǇƐŚĂůůĐŽŶƚŝŶƵĞƚŽŵĂŬĞĂĚĞƋƵĂƚĞĨƵŶĚƐĂǀĂŝůĂďůĞĨŽƌƚŚĞƉĂǇŵĞŶƚŽĨ ƐƵĐŚ ƋƵĂůŝĨŝĞĚ ĐůĂŝŵƐ Žƌ ůŽƐƐĞƐ ĂŶĚ ĂŶǇ ĂůůŽĐĂƚĞĚ ůŽƐƐ ĞǆƉĞŶƐĞƐ͘dŚĞ ĂĚĚŝƚŝŽŶĂůĂĚŵŝŶŝƐƚƌĂƚŝǀĞĨĞĞ;ƐͿĨŽƌƚŚŝƐƐĞƌǀŝĐĞƐŚĂůůďĞŶĞŐŽƚŝĂƚĞĚĂŶĚ ĂŐƌĞĞĚƚŽƉƌŝŽƌƚŽƚŚĞĞĨĨĞĐƚŝǀĞĚĂƚĞŽĨƚĞƌŵŝŶĂƚŝŽŶ͘ ď͘ WŽƐƚͲdĞƌŵŝŶĂƚŝŽŶ &ŝůĞ DĂŝŶƚĞŶĂŶĐĞͬŝƐƉŽƐĂů͘ hƉŽŶ ĐĂŶĐĞůůĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕/,/ƐŚĂůůĚĞůŝǀĞƌ͕ĂƚŝƚǇ͛ƐƐŽůĞĐŽƐƚ͕ƚŚĞĨŝůĞƐ /,/ ŚĂƐ ŵĂŝŶƚĂŝŶĞĚ ĨŽƌ ƋƵĂůŝĨŝĞĚ ĐůĂŝŵƐ Žƌ ůŽƐƐĞƐ ĞǆĐĞƉƚƚŚŽƐĞ/,/ ǁŝůů ĐŽŶƚŝŶƵĞƚŽƉƌŽĐĞƐƐ;ďƵƚŶŽƚŝŶĐůƵĚŝŶŐĂŶǇĐŽŵƉƵƚĞƌŚĂƌĚǁĂƌĞ͕ĨŝƌŵǁĂƌĞ͕ ƐŽĨƚǁĂƌĞŽƌƉƌŽƉƌŝĞƚĂƌǇŝŶĨŽƌŵĂƚŝŽŶŽĨ/,/Ϳ͖ƉƌŽǀŝĚĞĚ͕ŚŽǁĞǀĞƌ͕ĂƐĨŽůůŽǁƐ͗ ;ŝͿ ůĂŝŵƐ ĂƚĂ͘ hƉŽŶ ƌĞƋƵĞƐƚ ŽĨ ŝƚǇ͕ /,/ ƐŚĂůů ĂĚĚŝƚŝŽŶĂůůǇƉƌŽǀŝĚĞĨŝůĞŝŶĨŽƌŵĂƚŝŽŶƵƐŝŶŐĐŽŵƉƵƚĞƌĚŝƐŬƐ͕ĨůĂƐŚ ĚƌŝǀĞƐ͕ŽƌƐĞĐƵƌĞĨŝůĞƚƌĂŶƐĨĞƌƉƌŽƚŽĐŽů;^&dWͿ͘ůůĚĂƚĂƚƌĂŶƐĨĞƌǁŝůů ďĞ ĞŶĐƌǇƉƚĞĚ ƵƐŝŶŐ ƐŚĂƌĞĚ ŬĞǇƐ͘ dŚĞ ƐĞůĞĐƚŝŽŶ ŽĨ ƵƐĂŐĞ ŽĨ ĐŽŵƉƵƚĞƌĚŝƐŬƐ͕ĨůĂƐŚĚƌŝǀĞƐ͕Žƌ^&dWƐŚĂůůďĞĂƚƚŚĞĚŝƐĐƌĞƚŝŽŶŽĨ /,/͘^ƵĐŚĚŝƐŬƐ͕ĨůĂƐŚĚƌŝǀĞƐ͕Žƌ^&dWƚƌĂŶƐĨĞƌƐŚĂůůďĞƉƌŽĚƵĐĞĚĂƚ ƚŚĞƐŽůĞĞǆƉĞŶƐĞŽĨƚŚĞŝƚǇ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϰ ;ŝŝͿ ŽŶƚŝŶƵĞĚ/ŶƐƉĞĐƚŝŽŶƐ͘/,/ŽƌŝƚƐĂŐĞŶƚƐ͕ĞŵƉůŽǇĞĞƐ ŽƌĂƚƚŽƌŶĞǇƐƐŚĂůůĐŽŶƚŝŶƵĞƚŽďĞĞŶƚŝƚůĞĚƚŽŝŶƐƉĞĐƚƐƵĐŚĨŝůĞƐĂŶĚ ŵĂŬĞĐŽƉŝĞƐŽƌĞǆƚƌĂĐƚƐƚŚĞƌĞĨƌŽŵ͘ ;ŝŝŝͿ KƉƚŝŽŶƚŽZĞƚĂŝŶŽƌĞƐƚƌŽǇ͘/,/ƐŚĂůůŐŝǀĞŝƚǇƚŚŝƌƚǇ ;ϯϬͿĚĂǇƐƉƌŝŽƌǁƌŝƚƚĞŶŶŽƚŝĐĞŽĨŝƚƐŝŶƚĞŶƚƚŽƚƌĂŶƐĨĞƌĨŝůĞƐƚŽŝƚǇ͘/Ĩ ůŝĞŶƚĚŽĞƐŶŽƚĂŐƌĞĞƚŽĂĐĐĞƉƚƚŚĞƐĞĨŝůĞƐǁŝƚŚŝŶƐƵĐŚƉĞƌŝŽĚ͕ƚŚĞ ĨŝůĞƐǁŝůůďĞƌĞƚĂŝŶĞĚĨŽƌĂŶĂĚĚŝƚŝŽŶĂůŶŝŶĞƚǇ;ϵϬͿĚĂǇƐŽƌĚĞƐƚƌŽǇĞĚ Ăƚ/,/ŽƉƚŝŽŶ͘dŚĞůŝĞŶƚƐŚĂůůŚĂǀĞŶŽƌĞĐŽƵƌƐĞĂŐĂŝŶƐƚ/,/ĨŽƌ ĨĂŝůƵƌĞƚŽƌĞƚĂŝŶŽƌƚŚĞĚĞƐƚƌƵĐƚŝŽŶŽĨƚŚĞĨŝůĞƐ͘dŚĞŝƚǇĂŐƌĞĞƐƚŽ ĂĐĐĞƉƚƐƵĐŚƚƌĂŶƐĨĞƌƐŽĨĨŝůĞƐƵŶůĞƐƐŝƚǇŶŽƚŝĨŝĞƐ/,/ŝŶǁƌŝƚŝŶŐƚŚĂƚ ƐƵĐŚĨŝůĞƐĚŽŶŽƚŶĞĞĚƚŽďĞƌĞƚĂŝŶĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŝƚǇ͛Ɛ ƌĞĐŽƌĚƐƌĞƚĞŶƚŝŽŶƐĐŚĞĚƵůĞ͕ĂŶĚ/,/ŵĂǇĚĞƐƚƌŽǇƐƵĐŚĨŝůĞƐ͘ ;ŝǀͿ ŝƚǇZĞĐŽƌĚƐ͘KŶƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕/,/ ƐŚĂůůƉƌŽŵƉƚůǇƐƵƌƌĞŶĚĞƌƚŽƚŚĞŝƚǇĂůůƌĞĐŽƌĚƐƚŚĂƚŝŶĂŶǇǁĂǇ ƉĞƌƚĂŝŶ ƚŽ ƚŚĞ ďƵƐŝŶĞƐƐ ŽĨ ƚŚĞ ŝƚǇ Žƌ ƚŽ ĂŶǇ ŽĨ ŝƚƐ ŵĞŵďĞƌƐ͕ ŝŶĐůƵĚŝŶŐ ĐůĂŝŵƐ͕ ĨŝůĞƐ͕ ŝŶǀŽŝĐĞƐ͕ ŵĂŶƵĂůƐ͕ ĂŶĚ ŽƚŚĞƌ ǁƌŝƚƚĞŶ͕ ƉƌŝŶƚĞĚ͕ŽƌĐŽŵƉƵƚĞƌͲƐƚŽƌĞĚŝŶĨŽƌŵĂƚŝŽŶƉĞƌƚĂŝŶŝŶŐƚŽƚŚĞŝƚǇ͘/ƚ ŝƐĂŐƌĞĞĚƚŚĂƚƚŚĞŝƚǇŽǁŶƐĂůůƌĞĐŽƌĚƐƚŚĂƚŝŶĂŶǇǁĂǇƉĞƌƚĂŝŶƚŽ ƚŚĞďƵƐŝŶĞƐƐŽĨƚŚĞŝƚǇ͘ŝƚǇƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂůůĐŽƐƚƌĞůĂƚĞĚ ƚŽƚŚĞƚƌĂŶƐĨĞƌŽĨƌĞĐŽƌĚƐ͘ ϳ͘ WƌĂĐƚŝĐĞŽĨ>ĂǁĂŶĚWƌŽĨĞƐƐŝŽŶĂůĚǀŝĐĞ͘/ƚŝƐƵŶĚĞƌƐƚŽŽĚĂŶĚĂŐƌĞĞĚƚŚĂƚ/,/ƐŚĂůů ŶŽƚƉĞƌĨŽƌŵ͕ĂŶĚŝƚǇǁŝůůŶŽƚƌĞƋƵĞƐƚƉĞƌĨŽƌŵĂŶĐĞŽĨĂŶǇƐĞƌǀŝĐĞƐďǇ/,/ƚŚĂƚŵĂǇĐŽŶƐƚŝƚƵƚĞƚŚĞ ƵŶĂƵƚŚŽƌŝǌĞĚƉƌĂĐƚŝĐĞŽĨůĂǁ͘^ĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚƐŚĂůůŶŽƚďĞĐŽŶƐŝĚĞƌĞĚůĞŐĂů͕ƚĂǆŽƌĂĐĐŽƵŶƚŝŶŐ ĂĚǀŝĐĞ͕ĂŶĚ/,/ƐŚĂůůŝŶŶŽĞǀĞŶƚŐŝǀĞ͕ŽƌďĞƌĞƋƵŝƌĞĚƚŽŐŝǀĞ͕ĂŶǇůĞŐĂůŽƉŝŶŝŽŶŽƌƉƌŽǀŝĚĞĂŶǇ ůĞŐĂů͕ƚĂǆŽƌĂĐĐŽƵŶƚŝŶŐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƚŽŝƚǇ͘ŝƚǇĂĐŬŶŽǁůĞĚŐĞƐƚŚĂƚ/,/ŚĂƐďĞĞŶĞŶŐĂŐĞĚƚŽ ƉƌŽǀŝĚĞĐĞƌƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐĞƌǀŝĐĞƐĂŶĚƚŚĂƚŝƚŝƐŶŽƚƚŚĞŝŶƚĞŶƚŽĨƚŚĞƉĂƌƚŝĞƐƚŚĂƚ/,/ĂƐƐƵŵĞ ĂŶǇŝŶƐƵƌĂŶĐĞƌŝƐŬ͘/,/ƐŚĂůůŶŽƚĂĐƚĂƐĂŶŝŶƐƵƌĞƌĨŽƌŝƚǇ͖ĂŶĚƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůŶŽƚďĞ ĐŽŶƐƚƌƵĞĚĂƐĂŶŝŶƐƵƌĂŶĐĞƉŽůŝĐǇ͖ŝƚďĞŝŶŐƵŶĚĞƌƐƚŽŽĚƚŚĂƚ/,/ŝƐŝŶŶŽĞǀĞŶƚĨŝŶĂŶĐŝĂůůǇƌĞƐƉŽŶƐŝďůĞ ĨŽƌƉĂǇŵĞŶƚŽƌƐĂƚŝƐĨĂĐƚŝŽŶŽĨŝƚǇ͛ƐĐůĂŝŵƐ͕ůĂǁƐƵŝƚƐ͕ŽƌĂŶǇĨŽƌŵŽĨĐĂƵƐĞŽĨĂĐƚŝŽŶĂŐĂŝŶƐƚŝƚǇ ĨƌŽŵ/,/ĨƵŶĚƐ͘ ϴ͘ /ŶĚĞŵŶŝĨŝĐĂƚŝŽŶ͘ ϴ͘ϭ ĂĐŚƉĂƌƚǇƐŚĂůůŝŶĚĞŵŶŝĨǇ͕ĚĞĨĞŶĚĂŶĚŚŽůĚƚŚĞŽƚŚĞƌƉĂƌƚǇŚĂƌŵůĞƐƐĨƌŽŵ ĂŶĚĂŐĂŝŶƐƚĂůůĐůĂŝŵƐ͕ĚĞŵĂŶĚƐ͕ĂĐƚŝŽŶƐ͕ĐĂƵƐĞƐŽĨĂĐƚŝŽŶ͕ůŝĂďŝůŝƚŝĞƐ͕ůŽƐƐĞƐ͕ĚĂŵĂŐĞƐ͕ ĨŝŶĞƐ͕ ĨĞĞƐ͕ ĂƐƐĞƐƐŵĞŶƚƐ͕ ĂƌďŝƚƌĂƚŝŽŶƐ͕ ŝŶǀĞƐƚŝŐĂƚŝŽŶƐ͕ ƐĞƚƚůĞŵĞŶƚƐ͕ ůĂǁƐƵŝƚƐ Žƌ ŽƚŚĞƌ ƉƌŽĐĞĞĚŝŶŐƐ͕ĂŶǇĂŶĚĂůůĂƉƉĞĂůƐƚŚĞƌĞĨƌŽŵĂŶĚƚŚĞĐŽƐƚƐĂŶĚĞǆƉĞŶƐĞƐŝŶĐƵƌƌĞĚŝŶ ĐŽŶŶĞĐƚŝŽŶ ƚŚĞƌĞǁŝƚŚ͕ ŝŶĐůƵĚŝŶŐ ĂƚƚŽƌŶĞǇ͛Ɛ ĨĞĞƐ͕ ĂƌŝƐŝŶŐ ĨƌŽŵ Žƌ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ƐŽůĞ ŶĞŐůŝŐĞŶĐĞ͕ĞƌƌŽƌŽƌŽŵŝƐƐŝŽŶ͕ŐƌŽƐƐŶĞŐůŝŐĞŶĐĞŽƌǁŝůůĨƵůŵŝƐĐŽŶĚƵĐƚŽĨƚŚĞƉĂƌƚǇƵŶĚĞƌ ƚŚŝƐŐƌĞĞŵĞŶƚ͘ ϴ͘Ϯ͘ EŽƚŝĐĞ ƚŽ /ŶĚĞŵŶŝĨǇŝŶŐ WĂƌƚǇ͘ /Ĩ Ă ƉĂƌƚǇ ;ƚŚĞ ͞/ŶĚĞŵŶŝƚĞĞ͟Ϳ ƌĞĐĞŝǀĞƐ ǁƌŝƚƚĞŶŶŽƚŝĐĞŽĨĂŶǇĐůĂŝŵŽƌƚŚĞĐŽŵŵĞŶĐĞŵĞŶƚŽĨĂŶǇĂĐƚŝŽŶŽƌƉƌŽĐĞĞĚŝŶŐǁŝƚŚ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϱ ƌĞƐƉĞĐƚ ƚŽ ǁŚŝĐŚ ĂŶŽƚŚĞƌ ƉĂƌƚǇ ;ƚŚĞ͞/ŶĚĞŵŶŝĨǇŝŶŐ WĂƌƚǇ͟Ϳ ŝƐ ŽďůŝŐĂƚĞĚ ƚŽ ƉƌŽǀŝĚĞ͘ /ŶĚĞŵŶŝƚĞĞƐŚĂůů;ĂͿƉƌŽǀŝĚĞƚŚĞ/ŶĚĞŵŶŝĨǇŝŶŐWĂƌƚǇǁƌŝƚƚĞŶŶŽƚŝĐĞƚŚĞƌĞŽĨ͕;ďͿƚĞŶĚĞƌ ĐŽŶƚƌŽůŽĨƚŚĞĚĞĨĞŶƐĞŽĨƚŚĞŝŶĚĞŵŶŝĨŝĞĚĐůĂŝŵƚŽƚŚĞ/ŶĚĞŵŶŝĨǇŝŶŐWĂƌƚǇĂŶĚŽŶĐĞƚĞŶĚĞƌ ŽĨ ĐŽŶƚƌŽů ŽĨ ƚŚĞ ĚĞĨĞŶƐĞ ŽĐĐƵƌƐ͕ ƚŚĞ ŝŶĚĞŵŶŝĨǇŝŶŐ ƉĂƌƚǇ ƐŚĂůůŵĂŬĞ ŶŽ ƐĞƚƚůĞŵĞŶƚ͕ ĐŽŵƉƌŽŵŝƐĞŽƌŽƚŚĞƌǁŝƐĞƌĞƐŽůǀĞƚŚĞĐůĂŝŵŝŶĂŶǇŵĂŶŶĞƌǁŚŝĐŚǁŽƵůĚŝŶũƵƌĞŝŶĂŶǇǁĂǇ͕ ƚŚĞ/ŶĚĞŵŶŝƚĞĞ͕ĂŶĚ;ĐͿŶŽƚƐĞƚƚůĞŽƌŽƚŚĞƌǁŝƐĞƌĞƐŽůǀĞƚŚĞŝŶĚĞŵŶŝĨŝĞĚĐůĂŝŵǁŝƚŚŽƵƚƚŚĞ ƉƌŝŽƌǁƌŝƚƚĞŶĐŽŶƐĞŶƚŽĨƚŚĞ/ŶĚĞŵŶŝĨǇŝŶŐWĂƌƚǇ͘/ŶĂŶǇĞǀĞŶƚ͕ƚŚĞ/ŶĚĞŵŶŝƚĞĞĂŶĚƚŚĞ /ŶĚĞŵŶŝĨǇŝŶŐWĂƌƚǇƐŚĂůůĐŽŽƉĞƌĂƚĞŝŶƚŚĞĐŽŵƉƌŽŵŝƐĞŽĨ͕ŽƌĚĞĨĞŶƐĞĂŐĂŝŶƐƚ͕ĂŶǇƐƵĐŚ ĐůĂŝŵ͘ ϴ͘ϯ͘ ĞƚĞƌŵŝŶĂƚŝŽŶŽĨĞĨĞŶƐĞĂŶĚ/ŶĚĞŵŶŝƚǇKďůŝŐĂƚŝŽŶƐ͘dŚĞŝƚǇĂŶĚ/,/ ĂŐƌĞĞƚŚĂƚĂĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚĞĚĞĨĞŶƐĞĂŶĚŝŶĚĞŵŶŝƚǇŽďůŝŐĂƚŝŽŶƐĂƐƐĞƚĨŽƌƚŚŝŶƚŚŝƐ WƌŽǀŝƐŝŽŶƐŚĂůůďĞďĂƐĞĚƵƉŽŶƚŚĞĨŽůůŽǁŝŶŐ͗ ϴ͘ϯ͘ϭ /ĨƚŚĞĐŽŶĚƵĐƚĐŽŵƉůĂŝŶĞĚŽĨŝŶǀŽůǀĞƐĂŶǇĂůůĞŐĞĚĂĐƚ͕ĞƌƌŽƌŽƌ ŽŵŝƐƐŝŽŶ͕ŝŶĐůƵĚŝŶŐĂŶǇŝŶƚĞŶƚŝŽŶĂůƚŽƌƚ͕ǁŝůůĨƵůŵŝƐĐŽŶĚƵĐƚ͕ŶĞŐůŝŐĞŶĐĞŽƌŐƌŽƐƐ ŶĞŐůŝŐĞŶĐĞ ďǇ ŝƚǇ Žƌ ŝƚƐ ĂĨĨŝůŝĂƚĞĚ ĐŽŵƉĂŶŝĞƐ͕ Žƌ ŝƚƐ ĚŝƌĞĐƚŽƌƐ͕ ŽĨĨŝĐĞƌƐ͕ Žƌ ĞŵƉůŽǇĞĞƐ͕ƵŶĚĞƌƚŚĞƚĞƌŵƐŽĨƚŚŝƐ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ͕ŝŶĐůƵĚŝŶŐĂŶǇĂůůĞŐĂƚŝŽŶƐ͕ ĚĞŵĂŶĚƐ͕ĂĐƚŝŽŶƐ͕ĚĂŵĂŐĞ͕ůŽƐƐ͕ĐŽƐƚƐĂŶĚͬŽƌĞǆƉĞŶƐĞƐǁŚĂƚƐŽĞǀĞƌ͕ĂƐƐƉĞĐŝĨŝĞĚ ĂďŽǀĞ͕ƵŶĚĞƌƚŚŝƐ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ/dzƐŚĂůůĚĞĨĞŶĚĂŶĚŝŶĚĞŵŶŝĨǇ/ŶƚĞƌĐĂƌĞĂƐ ƐĞƚĨŽƌƚŚĂďŽǀĞ͘/ŶƐƵĐŚĞǀĞŶƚ͕/dzƐŚĂůůŚĂǀĞƚŚĞƌŝŐŚƚƚŽƐĞůĞĐƚ͕ǁŝƚŚƚŚĞƉƌŝŽƌ ĐŽŶƐĞŶƚŽĨ/ŶƚĞƌĐĂƌĞ͕ƐƵĐŚĐŽŶƐĞŶƚŶŽƚƚŽďĞƵŶƌĞĂƐŽŶĂďůĞǁŝƚŚŚĞůĚ͕ƚŚĞĂƚƚŽƌŶĞǇƐ ƚŽĐŽŶĚƵĐƚƚŚĞĚĞĨĞŶƐĞĂŶĚŝƚǇĂŶĚƐƵĐŚĂƚƚŽƌŶĞǇƐƐŚĂůůŚĂǀĞƚŚĞƌŝŐŚƚƚŽĚŝƌĞĐƚ ƚŚĞĐŽŶĚƵĐƚŽĨƐĂŝĚĚĞĨĞŶƐĞ͘ ϴ͘ϯ͘Ϯ /ĨƚŚĞĐŽŶĚƵĐƚĐŽŵƉůĂŝŶĞĚŽĨŝŶǀŽůǀĞƐĂŶǇĂůůĞŐĞĚĂĐƚ͕ĞƌƌŽƌ͕Žƌ ŽŵŝƐƐŝŽŶ͕ŝŶĐůƵĚŝŶŐĂŶǇŝŶƚĞŶƚŝŽŶĂůƚŽƌƚ͕ǁŝůůĨƵůŵŝƐĐŽŶĚƵĐƚ͕ŶĞŐůŝŐĞŶĐĞŽƌŐƌŽƐƐ ŶĞŐůŝŐĞŶĐĞďǇ/ŶƚĞƌĐĂƌĞŽƌŝƚƐĚŝƌĞĐƚŽƌƐ͕ŽĨĨŝĐĞƌƐ͕ŽƌĞŵƉůŽǇĞĞƐ͕ĂƌŝƐŝŶŐŽƵƚŽĨŽƌŝŶ ĂŶǇ ǁĂǇ ƌĞůĂƚĞĚ ƚŽ /ŶƚĞƌĐĂƌĞ͛Ɛ ŽďůŝŐĂƚŝŽŶƐ ƵŶĚĞƌ ƚŚĞ ƚĞƌŵƐ ŽĨ ƚŚŝƐ ^ĞƌǀŝĐĞ ŐƌĞĞŵĞŶƚ͕ŽƚŚĞƌƚŚĂŶĂŶǇĂĐƚŝŽŶƚĂŬĞŶďǇ/ŶƚĞƌĐĂƌĞĨŽƌŽƌĂƚƚŚĞƐƉĞĐŝĨŝĐĚŝƌĞĐƚŝŽŶ ŽĨŝƚǇ͕ŝŶĐůƵĚŝŶŐĂŶǇĂůůĞŐĂƚŝŽŶƐ͕ĚĞŵĂŶĚƐ͕ĂĐƚŝŽŶƐ͕ĚĂŵĂŐĞ͕ůŽƐƐ͕ĐŽƐƚƐĂŶĚͬŽƌ ĞǆƉĞŶƐĞƐǁŚĂƚƐŽĞǀĞƌ͕ĂƐƐƉĞĐŝĨŝĞĚĂďŽǀĞ͕ƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͕/ŶƚĞƌĐĂƌĞƐŚĂůů ĚĞĨĞŶĚĂŶĚŝŶĚĞŵŶŝĨǇŝƚǇĂƐƐĞƚĨŽƌƚŚĂďŽǀĞ͘/ŶƐƵĐŚĞǀĞŶƚ/ŶƚĞƌĐĂƌĞƐŚĂůůŚĂǀĞ ƚŚĞ ƌŝŐŚƚ ƚŽ ƐĞůĞĐƚ͕ ǁŝƚŚ ƚŚĞ ƉƌŝŽƌ ĐŽŶƐĞŶƚ ŽĨ ŝƚǇ͕ ƐƵĐŚ ĐŽŶƐĞŶƚ ŶŽƚ ƚŽ ďĞ ƵŶƌĞĂƐŽŶĂďůǇǁŝƚŚŚĞůĚ͕ƚŚĞĂƚƚŽƌŶĞǇƐƚŽĐŽŶĚƵĐƚƚŚĞĚĞĨĞŶƐĞĂŶĚ/ŶƚĞƌĐĂƌĞĂŶĚ ƐƵĐŚĂƚƚŽƌŶĞǇƐƐŚĂůůŚĂǀĞƚŚĞƌŝŐŚƚƚŽĚŝƌĞĐƚƚŚĞĐŽŶĚƵĐƚŽĨƐƵĐŚĚĞĨĞŶƐĞ͘ ϴ͘ϯ͘ϯ /ĨƚŚĞĂůůĞŐĞĚǁƌŽŶŐĨƵůĐŽŶĚƵĐƚĐĂŶŶŽƚďĞĚĞƚĞƌŵŝŶĞĚĨƌŽŵƚŚĞ ĂůůĞŐĂƚŝŽŶƐĂƐƉůĞĂĚĞĚ͕ĞĂĐŚƉĂƌƚǇƐŚĂůůĚĞĨĞŶĚŝƚƐĞůĨƵŶƚŝůƚŚĞĐŽŶĚƵĐƚĐŽŵƉůĂŝŶĞĚ ŽĨŝƐĐůĂƌŝĨŝĞĚĚƵƌŝŶŐƚŚĞĐŽƵƌƐĞŽĨƚŚĞůŝƚŝŐĂƚŝŽŶ͕ĂƚǁŚŝĐŚƚŝŵĞƚŚĞĚĞĨĞŶƐĞĂŶĚ ŝŶĚĞŵŶŝƚǇŽďůŝŐĂƚŝŽŶƐŚĂůůƉƌŽŵƉƚůǇďĞĚĞƚĞƌŵŝŶĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƚĞƌŵƐ ŽĨƚŚŝƐƉƌŽǀŝƐŝŽŶ͖ƉƌŽǀŝĚĞĚ͕ŚŽǁĞǀĞƌ͕ŝŶƚŚĞĞǀĞŶƚŝƚŝƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚŽŶĞƉĂƌƚǇ ŝƐŽďůŝŐĂƚĞĚƚŽŝŶĚĞŵŶŝĨǇƚŚĞŽƚŚĞƌƉĂƌƚǇ͕ƚŚĞƉĂƌƚǇƐŚĂůůƉƌŽŵƉƚůǇƌĞŝŵďƵƌƐĞŽƚŚĞƌ ƉĂƌƚǇĨŽƌĂŶǇĨĂŝƌĂŶĚƌĞĂƐŽŶĂďůĞĨĞĞƐĂŶĚĞǆƉĞŶƐĞƐŝŶĐƵƌƌĞĚďǇƚŚĞŽƚŚĞƌƉĂƌƚǇ ƵƉƚŽƚŚĞƚŝŵĞŽĨƐƵĐŚĚĞƚĞƌŵŝŶĂƚŝŽŶ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϲ ϵ͘ /,/ůĂŝŵĚŵŝŶŝƐƚƌĂƚŝŽŶ^ƚĂŶĚĂƌĚƐ͘ ϵ͘ϭ͘ ůĂŝŵ&ŝůĞƐ͘ůůůĂŝŵ&ŝůĞƐĂŶĚƌĞůĂƚĞĚĐŽƌƌĞƐƉŽŶĚĞŶĐĞĂŶĚĚŽĐƵŵĞŶƚƐ ƐŚĂůůďĞĚŝŐŝƚŝǌĞĚĂŶĚŵĂŝŶƚĂŝŶĞĚŝŶĂŶĞůĞĐƚƌŽŶŝĐĨŽƌŵĂƚĂŶĚƐŚĂůůďĞĂǀĂŝůĂďůĞĨŽƌƌĞǀŝĞǁ ďǇŝƚǇĚƵƌŝŶŐďƵƐŝŶĞƐƐŚŽƵƌƐ͘ ϵ͘ϭ͘ϭ KŶĐĞƚŚĞƌĞĐŽƌĚƐĂƌĞĚŝŐŝƚŝǌĞĚĂŶĚĂƚƚĂĐŚĞĚƚŽƚŚĞĞůĞĐƚƌŽŶŝĐĐůĂŝŵĨŝůĞ͕ /,/ƐŚĂůůĚĞƐƚƌŽǇƚŚĞŚĂƌĚĐŽƉǇǀĞƌƐŝŽŶŽĨƚŚĞƌĞĐŽƌĚǁŝƚŚŝŶϯϬĚĂǇƐŽĨǀĞƌŝĨǇŝŶŐƚŚĞ ĚŝŐŝƚŝǌĞĚǀĞƌƐŝŽŶŚĂƐďĞĞŶĐŽŵŵŝƚƚĞĚƚŽƚŚĞƐŽĨƚĐŽƉǇĨŝůĞ͘ ϵ͘ϭ͘Ϯ ZĞĐŽƌĚƐƌĞƚĂŝŶĞĚŝŶĞůĞĐƚƌŽŶŝĐŽƌĚŝŐŝƚĂůĨŽƌŵƐŚĂůůďĞƌĞƚĂŝŶĞĚĨŽƌƚŚĞ ĚƵƌĂƚŝŽŶŽĨƚŚĞĐŽŶƚƌĂĐƚĂŶĚƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞŝƚǇŽƌŝƚǇ͛ƐĞƐŝŐŶĞĞǁŝƚŚŝŶϯϬĚĂǇƐ ĨƌŽŵĐŽŶƚƌĂĐƚƚĞƌŵŝŶĂƚŝŽŶ͘ ϵ͘ϭ͘ϯ ĐůŽƐĞĚĐůĂŝŵƚƌĂŶƐĨĞƌƌĞĚŝŶĂŚĂƌĚĐŽƉǇĨŽƌŵĂƚƚŽ/,/ƐŚĂůůďĞƐƚŽƌĞĚ ĨŽƌϳǇĞĂƌƐĨƌŽŵƚŚĞůĂƐƚƉƌŽǀŝƐŝŽŶŽĨďĞŶĞĨŝƚƐ͘ůůĨŝůĞƐĚĞƐŝŐŶĂƚĞĚĂƐ͞&ƵƚƵƌĞDĞĚŝĐĂů͟ ĐůĂŝŵƐƐŚĂůůŶŽƚďĞĚĞƐƚƌŽǇĞĚƵŶůĞƐƐĂůůƌĞůĂƚĞĚĨŝůĞĐŽŶƚĞŶƚĂŶĚĚŽĐƵŵĞŶƚƐĂƌĞĚŝŐŝƚĂůůǇ ĐŽŶǀĞƌƚĞĚƚŽĂƐŽĨƚĐŽƉǇĨŝůĞ͘ ϵ͘ϭ͘ϰ /,/ƐŚĂůůŶŽƚŝĨǇŝƚǇĂŶĚƉƌŽǀŝĚĞĂůŝƐƚŽĨŚĂƌĚĐŽƉǇĐůĂŝŵƐƚŚĂƚŵĞĞƚ ƌĞĐŽƌĚƚŚĞƌĞĐŽƌĚĚĞƐƚƌƵĐƚŝŽŶƉŽůŝĐǇ͘ŝƚǇƐŚĂůůŚĂǀĞƚŚĞƌŝŐŚƚƚŽŚĂǀĞƚŚĞƐƵĐŚĨŝůĞƐ ƐƚŽƌĞĚĂŶĚŵĂŝŶƚĂŝŶĞĚŽƌĚŝŐŝƚŝǌĞĚĂƚŝƚǇ͛ƐŽǁŶĐŽƐƚ͘ ϵ͘Ϯ͘ ŝĂƌǇ ^ǇƐƚĞŵ͘ /,/ ƐŚĂůů ƵƚŝůŝǌĞ Ă ĐŽŵƉƵƚĞƌͲŐĞŶĞƌĂƚĞĚ ĚŝĂƌǇ ƐǇƐƚĞŵ ƚŽ ƉƌŽǀŝĚĞŽŶŐŽŝŶŐĨŝůĞŵĂŝŶƚĞŶĂŶĐĞĂŶĚĨĂĐŝůŝƚĂƚĞƌĞǀŝĞǁ͘ ϵ͘ϯ͘ ^ĞƌǀŝĐĞ/ŶƐƚƌƵĐƚŝŽŶ'ƵŝĚĞůŝŶĞƐ͘/,/ĂŶĚ/dzƐŚĂůůĚĞǀĞůŽƉĂŶĚŵĂŝŶƚĂŝŶĂ ^ĞƌǀŝĐĞ/ŶƐƚƌƵĐƚŝŽŶ'ƵŝĚĞůŝŶĞƚŽƐƵƉƉůĞŵĞŶƚƚŚĞĐŽŶƚƌĂĐƚĂƐĂǁŽƌŬŝŶŐĚŽĐƵŵĞŶƚŽƵƚůŝŶŝŶŐ ƚŚĞŽŶŐŽŝŶŐƐĞƌǀŝĐĞŝŶƐƚƌƵĐƚŝŽŶƐƚŽďĞĨŽůůŽǁĞĚďǇ/,/ĂŶĚƚŚĞĐůĂŝŵƐƚĞĂŵ͘ ϵ͘ϰ͘ WƌŽŵƉƚWĂǇŵĞŶƚƐ͘ŝƚǇĂŐƌĞĞƐƚŽƌĞƉŽƌƚĂůůůĂŝŵƐƚŽ/,/ǁŝƚŚŝŶĨŝǀĞĚĂǇƐ ŽĨŝƚǇ͛ƐŬŶŽǁůĞĚŐĞŽĨƐƵĐŚůĂŝŵ͘/,/ĂŐƌĞĞƐƚŽŵĂŬĞĞǀĞƌǇƌĞĂƐŽŶĂďůĞĐŽŵŵĞƌĐŝĂůĞĨĨŽƌƚ ƚŽĚŝƐďƵƌƐĞĚŝƐĂďŝůŝƚǇƉĂǇŵĞŶƚƐǁŝƚŚŝŶĨŽƵƌƚĞĞŶĚĂǇƐŽĨƚŚĞĚĂƚĞŽŶǁŚŝĐŚ/,/ƌĞĐĞŝǀĞƐĂ ƌĞƉŽƌƚŝŶĚŝĐĂƚŝŶŐƚŚĂƚĚŝƐĂďŝůŝƚǇƉĂǇŵĞŶƚƐĂƌĞĚƵĞ͘ ϵ͘ϱ͘ ZĞƐĞƌǀĞŶĂůǇƐŝƐ͘/,/ĂŐƌĞĞƐƚŽĐŽŵƉůĞƚĞĂƌĞƐĞƌǀĞĂŶĂůǇƐŝƐǁŽƌŬƐŚĞĞƚĨŽƌ ĞĂĐŚ /ŶĚĞŵŶŝƚǇ ůĂŝŵ ǁŚĞŶ ŝŶŝƚŝĂůůǇ ƌĞƉŽƌƚĞĚ͘ &Ƶůů ƌĞǀŝĞǁƐ ŵĂǇ ĂůƐŽ ďĞ ƉĞƌĨŽƌŵĞĚ ǁŚĞŶĞǀĞƌĂĚĚŝƚŝŽŶĂůŵĂƚĞƌŝĂůŝŶĨŽƌŵĂƚŝŽŶŝƐƌĞĐĞŝǀĞĚďǇ/,/͘/,/͛ƐĐƵƌƌĞŶƚƉŽůŝĐǇŝƐƚŽ ƌĞƐĞƌǀĞƐƵĨĨŝĐŝĞŶƚƐƵŵƐƚŽĐŽǀĞƌĂůůƉƌŽďĂďůĞĞǆƉĞŶĚŝƚƵƌĞƐĂŶĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ĞůĨ /ŶƐƵƌĞĚWůĂŶƐ'ƵŝĚĞůŝŶĞƐǁŝƚŚƌĞƐƉĞĐƚƚŽĂůĂŝŵ͘ ϵ͘ϲ͘ /ŶǀĞƐƚŝŐĂƚŝŽŶ͘ /,/ ĂŐƌĞĞƐ ƚŚĂƚ Ăůů ĐŽŵƉĞŶƐĂďŝůŝƚǇ ŝŶǀĞƐƚŝŐĂƚŝŽŶƐ ǁŝůůďĞ ƉĞƌĨŽƌŵĞĚĂŶĚĐŽŵƉůĞƚĞĚǁŝƚŚŝŶŶŝŶĞƚǇĚĂǇƐŽĨ/,/͛ƐŬŶŽǁůĞĚŐĞŽĨƚŚĞƋƵĞƐƚŝŽŶĂďůĞ ůĂŝŵ͘ ϵ͘ϳ͘ WĞƌŵŝƚƐͬ>ŝĐĞŶƐĞƐ͘/,/ĂŐƌĞĞƐƚŽŽďƚĂŝŶĂŶĚŵĂŝŶƚĂŝŶĂůůŵĂƚĞƌŝĂůƉĞƌŵŝƚƐ ĂŶĚůŝĐĞŶƐĞƐĂƐƌĞƋƵŝƌĞĚďǇůĂǁĨŽƌƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ^ĞƌǀŝĐĞƐ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϳ ϵ͘ϴ͘ ŽŶƚĂĐƚ͘/,/ƐŚĂůůĞŶĚĞĂǀŽƌƚŽĐŽŵƉůĞƚĞƚŚƌĞĞͲƉŽŝŶƚĐŽŶƚĂĐƚƐ;ƉŚǇƐŝĐŝĂŶ͕ ĞŵƉůŽǇĞƌ͕ĂŶĚĞŵƉůŽǇĞĞͿďǇƚĞůĞƉŚŽŶĞŽƌŵĂŝůǁŝƚŚŝŶƚǁŽďƵƐŝŶĞƐƐĚĂǇƐŽĨƌĞĐĞŝƉƚŽĨĂ ůĂŝŵ͘ ϭϬ͘ /ŶƐƵƌĂŶĐĞ͘/,/ƐŚĂůůŵĂŝŶƚĂŝŶƚŚĞĨŽůůŽǁŝŶŐŵŝŶŝŵƵŵŝŶƐƵƌĂŶĐĞĐŽǀĞƌĂŐĞƐĚƵƌŝŶŐ ƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͗ ϭϬ͘ϭ͘ 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ƉĞƌƐŽŶĂƵƚŚŽƌŝǌĞĚďǇƚŚĂƚŝŶƐƵƌĞƌƚŽďŝŶĚĐŽǀĞƌĂŐĞŽŶŝƚƐďĞŚĂůĨ͘/ĨƚŚĞŝƚǇĚŽĞƐ ŶŽƚƌĞĐĞŝǀĞƚŚĞƌĞƋƵŝƌĞĚŝŶƐƵƌĂŶĐĞĚŽĐƵŵĞŶƚƐƉƌŝŽƌƚŽƚŚĞ/,/ďĞŐŝŶŶŝŶŐǁŽƌŬ͕ŝƚ ƐŚĂůůŶŽƚǁĂŝǀĞƚŚĞ/,/͛ƐŽďůŝŐĂƚŝŽŶƚŽƉƌŽǀŝĚĞƚŚĞŵ͘dŚĞŝƚǇƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚ ƚŽƌĞƋƵŝƌĞĐŽŵƉůĞƚĞĐŽƉŝĞƐŽĨĂůůƌĞƋƵŝƌĞĚŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐĂƚĂŶǇƚŝŵĞ͘ ϭϬ͘ϰ͘ϯ EŽƚŝĐĞŽĨZĞĚƵĐƚŝŽŶŝŶŽƌĂŶĐĞůůĂƚŝŽŶŽĨŽǀĞƌĂŐĞ͘ĐĞƌƚŝĨŝĞĚĞŶĚŽƌƐĞŵĞŶƚ ƐŚĂůůďĞĂƚƚĂĐŚĞĚƚŽĂůůŝŶƐƵƌĂŶĐĞŽďƚĂŝŶĞĚƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚƐƚĂƚŝŶŐ ƚŚĂƚ ĐŽǀĞƌĂŐĞ ƐŚĂůů ŶŽƚ ďĞ ƐƵƐƉĞŶĚĞĚ͕ ǀŽŝĚĞĚ͕ ĐĂŶĐĞůĞĚ ďǇ ĞŝƚŚĞƌ ƉĂƌƚǇ͕ Žƌ ƌĞĚƵĐĞĚŝŶĐŽǀĞƌĂŐĞŽƌŝŶůŝŵŝƚƐ͕ĞǆĐĞƉƚĂĨƚĞƌƚŚŝƌƚǇ;ϯϬͿĚĂǇƐΖƉƌŝŽƌǁƌŝƚƚĞŶŶŽƚŝĐĞ ďǇĐĞƌƚŝĨŝĞĚŵĂŝů͕ƌĞƚƵƌŶƌĞĐĞŝƉƚƌĞƋƵĞƐƚĞĚ͕ŚĂƐďĞĞŶŐŝǀĞŶƚŽƚŚĞŝƚǇ͘/ŶƚŚĞ ĞǀĞŶƚƚŚĂƚĂŶǇĐŽǀĞƌĂŐĞƌĞƋƵŝƌĞĚďǇƚŚŝƐƐĞĐƚŝŽŶŝƐƌĞĚƵĐĞĚ͕ůŝŵŝƚĞĚ͕ĐĂŶĐĞůůĞĚ͕Žƌ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϭϵ ŵĂƚĞƌŝĂůůǇĂĨĨĞĐƚĞĚŝŶĂŶǇŽƚŚĞƌŵĂŶŶĞƌ͕/,/ƐŚĂůůƉƌŽǀŝĚĞǁƌŝƚƚĞŶŶŽƚŝĐĞƚŽŝƚǇĂƚ /,/͛ƐĞĂƌůŝĞƐƚƉŽƐƐŝďůĞŽƉƉŽƌƚƵŶŝƚǇĂŶĚŝŶŶŽĐĂƐĞůĂƚĞƌƚŚĂŶƚĞŶ;ϭϬͿǁŽƌŬŝŶŐĚĂǇƐ ĂĨƚĞƌ/,/ŝƐŶŽƚŝĨŝĞĚŽĨƚŚĞĐŚĂŶŐĞŝŶĐŽǀĞƌĂŐĞ͘ ϭϬ͘ϰ͘ϰ ĚĚŝƚŝŽŶĂůŝŶƐƵƌĞĚ͖ƉƌŝŵĂƌǇŝŶƐƵƌĂŶĐĞ͘ŝƚǇĂŶĚŝƚƐŽĨĨŝĐĞƌƐ͕ĞŵƉůŽǇĞĞƐ͕ĂŐĞŶƚƐ͕ ĂŶĚǀŽůƵŶƚĞĞƌƐƐŚĂůůďĞĐŽǀĞƌĞĚĂƐĂĚĚŝƚŝŽŶĂůŝŶƐƵƌĞĚƐǁŝƚŚƌĞƐƉĞĐƚƚŽĞĂĐŚŽĨƚŚĞ ĨŽůůŽǁŝŶŐ͗ ůŝĂďŝůŝƚǇ ĂƌŝƐŝŶŐ ŽƵƚ ŽĨ ĂĐƚŝǀŝƚŝĞƐ ƉĞƌĨŽƌŵĞĚ ďǇ ŽƌŽŶ ďĞŚĂůĨ ŽĨ /,/͕ ŝŶĐůƵĚŝŶŐ ƚŚĞ ŝŶƐƵƌĞĚ͛Ɛ ŐĞŶĞƌĂů ƐƵƉĞƌǀŝƐŝŽŶ ŽĨ /,/͖ ƉƌŽĚƵĐƚƐ ĂŶĚ ĐŽŵƉůĞƚĞĚ ŽƉĞƌĂƚŝŽŶƐŽĨ/,/͕ĂƐĂƉƉůŝĐĂďůĞ͖ƉƌĞŵŝƐĞƐŽǁŶĞĚ͕ŽĐĐƵƉŝĞĚ͕ŽƌƵƐĞĚďǇ/,/͖ĂŶĚ ĂƵƚŽŵŽďŝůĞƐŽǁŶĞĚ͕ůĞĂƐĞĚ͕ŽƌƵƐĞĚďǇƚŚĞ/,/ŝŶƚŚĞĐŽƵƌƐĞŽĨƉƌŽǀŝĚŝŶŐƐĞƌǀŝĐĞƐ ƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͘dŚĞĐŽǀĞƌĂŐĞƐŚĂůůĐŽŶƚĂŝŶŶŽƐƉĞĐŝĂůůŝŵŝƚĂƚŝŽŶƐŽŶ ƚŚĞƐĐŽƉĞŽĨƉƌŽƚĞĐƚŝŽŶĂĨĨŽƌĚĞĚƚŽŝƚǇŽƌŝƚƐŽĨĨŝĐĞƌƐ͕ĞŵƉůŽǇĞĞƐ͕ĂŐĞŶƚƐ͕Žƌ ǀŽůƵŶƚĞĞƌƐ͘ ĐĞƌƚŝĨŝĞĚĞŶĚŽƌƐĞŵĞŶƚŵƵƐƚďĞĂƚƚĂĐŚĞĚƚŽĂůůƉŽůŝĐŝĞƐƐƚĂƚŝŶŐƚŚĂƚĐŽǀĞƌĂŐĞŝƐ ƉƌŝŵĂƌǇŝŶƐƵƌĂŶĐĞǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞŝƚǇĂŶĚŝƚƐŽĨĨŝĐĞƌƐ͕ŽĨĨŝĐŝĂůƐ͕ĞŵƉůŽǇĞĞƐ ĂŶĚǀŽůƵŶƚĞĞƌƐ͕ĂŶĚƚŚĂƚŶŽŝŶƐƵƌĂŶĐĞŽƌƐĞůĨͲŝŶƐƵƌĂŶĐĞŵĂŝŶƚĂŝŶĞĚďǇƚŚĞŝƚǇ ƐŚĂůůďĞĐĂůůĞĚƵƉŽŶƚŽĐŽŶƚƌŝďƵƚĞƚŽĂůŽƐƐƵŶĚĞƌƚŚĞĐŽǀĞƌĂŐĞ͘ ϭϬ͘ϰ͘ϱ ĞĚƵĐƚŝďůĞƐĂŶĚ^ĞůĨͲ/ŶƐƵƌĞĚZĞƚĞŶƚŝŽŶƐ͘/,/ƐŚĂůůĚŝƐĐůŽƐĞƚŽĂŶĚŽďƚĂŝŶƚŚĞ ĂƉƉƌŽǀĂůŽĨŝƚǇĨŽƌƚŚĞƐĞůĨͲŝŶƐƵƌĞĚƌĞƚĞŶƚŝŽŶƐĂŶĚĚĞĚƵĐƚŝďůĞƐďĞĨŽƌĞďĞŐŝŶŶŝŶŐ ĂŶǇŽĨƚŚĞƐĞƌǀŝĐĞƐŽƌǁŽƌŬĐĂůůĞĚĨŽƌďǇĂŶǇƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘&ƵƌƚŚĞƌ͕ŝĨ ƚŚĞ/,/͛ƐŝŶƐƵƌĂŶĐĞƉŽůŝĐǇŝŶĐůƵĚĞƐĂƐĞůĨͲŝŶƐƵƌĞĚƌĞƚĞŶƚŝŽŶƚŚĂƚŵƵƐƚďĞƉĂŝĚďǇĂ ŶĂŵĞĚŝŶƐƵƌĞĚĂƐĂƉƌĞĐŽŶĚŝƚŝŽŶŽĨƚŚĞŝŶƐƵƌĞƌ͛ƐůŝĂďŝůŝƚǇ͕ŽƌǁŚŝĐŚŚĂƐƚŚĞĞĨĨĞĐƚ ŽĨƉƌŽǀŝĚŝŶŐƚŚĂƚƉĂǇŵĞŶƚƐŽĨƚŚĞƐĞůĨͲŝŶƐƵƌĞĚƌĞƚĞŶƚŝŽŶďǇŽƚŚĞƌƐ͕ŝŶĐůƵĚŝŶŐ ĂĚĚŝƚŝŽŶĂůŝŶƐƵƌĞĚƐŽƌŝŶƐƵƌĞƌƐĚŽŶŽƚƐĞƌǀĞƚŽƐĂƚŝƐĨǇƚŚĞƐĞůĨͲŝŶƐƵƌĞĚƌĞƚĞŶƚŝŽŶ͕ ƐƵĐŚƉƌŽǀŝƐŝŽŶƐŵƵƐƚďĞŵŽĚŝĨŝĞĚďǇƐƉĞĐŝĂůĞŶĚŽƌƐĞŵĞŶƚƐŽĂƐƚŽŶŽƚĂƉƉůǇƚŽ ƚŚĞĂĚĚŝƚŝŽŶĂůŝŶƐƵƌĞĚĐŽǀĞƌĂŐĞƌĞƋƵŝƌĞĚďǇƚŚŝƐĂŐƌĞĞŵĞŶƚƐŽĂƐƚŽŶŽƚƉƌĞǀĞŶƚ ĂŶǇŽĨƚŚĞƉĂƌƚŝĞƐƚŽƚŚŝƐĂŐƌĞĞŵĞŶƚĨƌŽŵƐĂƚŝƐĨǇŝŶŐŽƌƉĂǇŝŶŐƚŚĞƐĞůĨͲŝŶƐƵƌĞĚ ƌĞƚĞŶƚŝŽŶ ƌĞƋƵŝƌĞĚ ƚŽ ďĞ ƉĂŝĚ ĂƐ Ă ƉƌĞĐŽŶĚŝƚŝŽŶ ƚŽ ƚŚĞ ŝŶƐƵƌĞƌ͛Ɛ ůŝĂďŝůŝƚǇ͘ ĚĚŝƚŝŽŶĂůůǇ͕ƚŚĞĐĞƌƚŝĨŝĐĂƚĞƐŽĨŝŶƐƵƌĂŶĐĞŵƵƐƚŶŽƚĞǁŚĞƚŚĞƌƚŚĞƉŽůŝĐǇĚŽĞƐŽƌ ĚŽĞƐ ŶŽƚ ŝŶĐůƵĚĞ ĂŶǇ ƐĞůĨͲŝŶƐƵƌĞĚ ƌĞƚĞŶƚŝŽŶ ĂŶĚ ĂůƐŽ ŵƵƐƚ ĚŝƐĐůŽƐĞ ƚŚĞ ĚĞĚƵĐƚŝďůĞ͘ ƵƌŝŶŐƚŚĞƉĞƌŝŽĚĐŽǀĞƌĞĚďǇƚŚŝƐŐƌĞĞŵĞŶƚ͕ŽŶůǇƵƉŽŶƚŚĞƉƌŝŽƌĞǆƉƌĞƐƐǁƌŝƚƚĞŶ ĂƵƚŚŽƌŝǌĂƚŝŽŶŽĨŽŶƚƌĂĐƚĚŵŝŶŝƐƚƌĂƚŽƌ͕/,/ŵĂǇŝŶĐƌĞĂƐĞƐƵĐŚĚĞĚƵĐƚŝďůĞƐŽƌ ƐĞůĨͲŝŶƐƵƌĞĚƌĞƚĞŶƚŝŽŶƐǁŝƚŚƌĞƐƉĞĐƚƚŽŝƚǇ͕ŝƚƐŽĨĨŝĐĞƌƐ͕ĞŵƉůŽǇĞĞƐ͕ĂŐĞŶƚƐ͕ĂŶĚ ǀŽůƵŶƚĞĞƌƐ͘dŚĞŽŶƚƌĂĐƚĚŵŝŶŝƐƚƌĂƚŽƌŵĂǇĐŽŶĚŝƚŝŽŶĂƉƉƌŽǀĂůŽĨĂŶŝŶĐƌĞĂƐĞŝŶ ĚĞĚƵĐƚŝďůĞŽƌƐĞůĨͲŝŶƐƵƌĞĚƌĞƚĞŶƚŝŽŶůĞǀĞůƐǁŝƚŚĂƌĞƋƵŝƌĞŵĞŶƚƚŚĂƚ/,/ƉƌŽĐƵƌĞĂ ďŽŶĚ͕ ŐƵĂƌĂŶƚĞĞŝŶŐ ƉĂǇŵĞŶƚ ŽĨ ůŽƐƐĞƐ ĂŶĚ ƌĞůĂƚĞĚ ŝŶǀĞƐƚŝŐĂƚŝŽŶƐ͕ ĐůĂŝŵ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ͕ĂŶĚĚĞĨĞŶƐĞĞǆƉĞŶƐĞƐƚŚĂƚŝƐƐĂƚŝƐĨĂĐƚŽƌǇŝŶĂůůƌĞƐƉĞĐƚƐƚŽĞĂĐŚ ŽĨƚŚĞŵ͘ ϭϬ͘ϰ͘ϲ^ƵďĐŽŶƚƌĂĐƚŽƌƐ͘/,/ƐŚĂůůŝŶĐůƵĚĞĂůůƐƵďĐŽŶƚƌĂĐƚŽƌƐĂƐŝŶƐƵƌĞĚƐƵŶĚĞƌŝƚƐƉŽůŝĐŝĞƐ Žƌ ƐŚĂůů ĨƵƌŶŝƐŚ ƐĞƉĂƌĂƚĞ ĐĞƌƚŝĨŝĐĂƚĞƐ ĂŶĚ ĐĞƌƚŝĨŝĞĚ ĞŶĚŽƌƐĞŵĞŶƚƐ ĨŽƌ ĞĂĐŚ ƐƵďĐŽŶƚƌĂĐƚŽƌ͘ůůĐŽǀĞƌĂŐĞƐĨŽƌƐƵďĐŽŶƚƌĂĐƚŽƌƐƐŚĂůůďĞƐƵďũĞĐƚƚŽĂůůŽĨƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐƐƚĂƚĞĚŚĞƌĞŝŶ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϮϬ ϭϬ͘ϰ͘ϳ tĂƐƚŝŶŐ WŽůŝĐǇ͘EŽ ŝŶƐƵƌĂŶĐĞ ƉŽůŝĐǇ ƌĞƋƵŝƌĞĚ ďǇ ^ĞĐƚŝŽŶ ϰ ƐŚĂůů ŝŶĐůƵĚĞ Ă ͞ǁĂƐƚŝŶŐ͟ƉŽůŝĐǇůŝŵŝƚ͘ ϭϬ͘ϰ͘ϴsĂƌŝĂƚŝŽŶ͘ dŚĞ ŝƚǇ ŵĂǇ ĂƉƉƌŽǀĞ Ă ǀĂƌŝĂƚŝŽŶ ŝŶ ƚŚĞ ĨŽƌĞŐŽŝŶŐ ŝŶƐƵƌĂŶĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ͕ƵƉŽŶĂĚĞƚĞƌŵŝŶĂƚŝŽŶƚŚĂƚƚŚĞĐŽǀĞƌĂŐĞ͕ƐĐŽƉĞ͕ůŝŵŝƚƐ͕ĂŶĚĨŽƌŵƐ ŽĨ ƐƵĐŚ ŝŶƐƵƌĂŶĐĞ ĂƌĞ ĞŝƚŚĞƌ ŶŽƚ ĐŽŵŵĞƌĐŝĂůůǇ ĂǀĂŝůĂďůĞ͕ Žƌ ƚŚĂƚ ƚŚĞ ŝƚǇ͛Ɛ ŝŶƚĞƌĞƐƚƐĂƌĞŽƚŚĞƌǁŝƐĞĨƵůůǇƉƌŽƚĞĐƚĞĚ͘ ϭϭ͘ tĂŝǀĞƌŽĨZĞƋƵŝƌĞŵĞŶƚƚŽǆŚĂƵƐƚŽƵƌƚZĞŵĞĚŝĞƐ͘ŝƚǇŚĞƌĞďǇĞǆƉƌĞƐƐůǇǁĂŝǀĞƐ ĂƉƉůŝĐĂƚŝŽŶŽĨƚŚĞĚŽĐƚƌŝŶĞƐŽĨĞǆŚĂƵƐƚŝŽŶŽĨƌĞŵĞĚŝĞƐ͕ĂďƐƚĞŶƚŝŽŶ͕ŽƌĐŽŵŝƚǇĂŶĚĂůůŽƚŚĞƌƌŝŐŚƚƐ ƚŚĂƚ ŵŝŐŚƚ ŽƚŚĞƌǁŝƐĞ ƌĞƋƵŝƌĞ ƚŚĂƚ ĐůĂŝŵƐ ĂŐĂŝŶƐƚ ŝƚǇ͕ ƚŽ ƚŚĞ ĞǆƚĞŶƚ ƌĞůĂƚĞĚ ƚŽ Žƌ ĂƌŝƐŝŶŐ ŚĞƌĞƵŶĚĞƌ͕ďĞŚĞĂƌĚŝŶĂŶǇĐŽƵƌƚŽƌŽƚŚĞƌĨŽƌƵŵ͘ ϭϮ͘ ŐƌĞĞŵĞŶƚƚŽƌďŝƚƌĂƚŝŽŶ͘dŚĞƉĂƌƚŝĞƐŚĞƌĞƚŽĂŐƌĞĞƚŚĂƚĂŶǇĚŝƐƉƵƚĞŽƌĐůĂŝŵƚŚĂƚ ŝƐĚŝƌĞĐƚůǇŽƌŝŶĚŝƌĞĐƚůǇƌĞůĂƚĞĚƚŽƚŚĞŐƌĞĞŵĞŶƚ͕ǁŚĞƚŚĞƌĂƌŝƐŝŶŐĂƐĂŵĂƚƚĞƌŽĨƚŽƌƚ͕ĐŽŶƚƌĂĐƚŽƌ ŽƚŚĞƌǁŝƐĞ͕ƐŚĂůůďĞƌĞƐŽůǀĞĚďǇďŝŶĚŝŶŐĂƌďŝƚƌĂƚŝŽŶƵŶĚĞƌƚŚĞĐŽŵŵĞƌĐŝĂůĂƌďŝƚƌĂƚŝŽŶƌƵůĞƐŽĨƚŚĞ ŵĞƌŝĐĂŶƌďŝƚƌĂƚŝŽŶƐƐŽĐŝĂƚŝŽŶ;͟͞Ϳ͘ŶĂƌďŝƚƌĂƚŝŽŶƉƌŽĐĞĞĚŝŶŐŵĂǇďĞĐŽŵŵĞŶĐĞĚŽŶůǇ ƵƉŽŶƚŚĞĨŝůŝŶŐǁŝƚŚƚŚĞŽĨĂ^ƚĂƚĞŵĞŶƚŽĨůĂŝŵ;ǁŝƚŚŝŶƚŚĞŵĞĂŶŝŶŐŽĨƚŚĞƌƵůĞƐͿĂŶĚ ƐĞƌǀŝŶŐĂĐŽƉǇƚŚĞƌĞŽĨŽŶƚŚĞŽƚŚĞƌƉĂƌƚǇ͘dŚĞŚĞĂƌŝŶŐŽŶƚŚĞĂƌďŝƚƌĂƚŝŽŶƐŚĂůůďĞŚĞůĚŝŶƚŚĞ ŽƵŶƚǇŽĨ^ĂŶDĂƚĞŽ͕ĂůŝĨŽƌŶŝĂ͕ĂŶĚĐŽŵŵĞŶĐĞĂŶĚďĞĐŽŵƉůĞƚĞĚŶŽŵŽƌĞƚŚĂŶƚŚŝƌƚǇĚĂǇƐĂĨƚĞƌ ƚŚĞĐůŽƐĞŽĨĚŝƐĐŽǀĞƌǇ͕ĂŶĚƚŚĞĂƌďŝƚƌĂƚŽƌƐŚĂůůƌĞŶĚĞƌĂŶĂǁĂƌĚŝŶǁƌŝƚŝŶŐǁŝƚŚŝŶƚŚŝƌƚǇĚĂǇƐŽĨ ƚŚĞĐŽŵƉůĞƚŝŽŶŽĨƚŚĞŚĞĂƌŝŶŐ͕ǁŚŝĐŚƐŚĂůůĐŽŶƚĂŝŶĨŝŶĚŝŶŐƐŽĨĨĂĐƚƐĂŶĚĐŽŶĐůƵƐŝŽŶƐŽĨůĂǁ͘ŶǇ ĂƌďŝƚƌĂƚŽƌĂƉƉŽŝŶƚĞĚŚĞƌĞƵŶĚĞƌŵĂǇĂǁĂƌĚŝŶƚĞƌŝŵŝŶũƵŶĐƚŝǀĞƌĞůŝĞĨďĞĨŽƌĞƚŚĞĨŝŶĂůĂƌďŝƚƌĂƚŝŽŶ ĂǁĂƌĚ͘ŶǇĐŽŶƚƌŽǀĞƌƐǇĐŽŶĐĞƌŶŝŶŐǁŚĞƚŚĞƌĂŶŝƐƐƵĞŝƐĂƌďŝƚƌĂďůĞƐŚĂůůďĞĚĞƚĞƌŵŝŶĞĚďǇƚŚĞ ĂƌďŝƚƌĂƚŽƌ͘ ϭϯ͘ ŽŶƐĞŶƚƚŽ&ĞĚĞƌĂůĂŶŬƌƵƉƚĐǇ:ƵƌŝƐĚŝĐƚŝŽŶ͘/ŶƚŚĞĞǀĞŶƚƚŚĂƚĞŝƚŚĞƌƉĂƌƚǇŝƐŶŽƚ ^ŽůǀĞŶƚ͕ƐƵĐŚƉĂƌƚǇĂŐƌĞĞƐƚŽĂŶĚĚŽĞƐŚĞƌĞďǇǀŽůƵŶƚĂƌŝůǇĂŶĚŝƌƌĞǀŽĐĂďůǇƐƵďŵŝƚŝƚƐĞůĨƚŽƚŚĞ ƐƵďũĞĐƚŵĂƚƚĞƌũƵƌŝƐĚŝĐƚŝŽŶ͕ƉĞƌƐŽŶĂůũƵƌŝƐĚŝĐƚŝŽŶĂŶĚƐĞƌǀŝĐĞŽĨƉƌŽĐĞƐƐŽĨƚŚĞĨĞĚĞƌĂůďĂŶŬƌƵƉƚĐǇ ůĂǁƐŽĨƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐŽĨŵĞƌŝĐĂ͕ĂƐǁĞůůĂƐƚŽƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐĂŶŬƌƵƉƚĐǇŽƵƌƚŽĨƚŚĞ EŽƌƚŚĞƌŶŝƐƚƌŝĐƚŽĨĂůŝĨŽƌŶŝĂ͘ ϭϰ͘ EĞƚǁŽƌŬ^ĞĐƵƌŝƚǇĂŶĚŽŶĨŝĚĞŶƚŝĂůŝƚǇ͘ ϭϰ͘ϭ͘ /ĨŝƚǇ͛ƐĂĐĐĞƐƐƚŽƚŚĞĚĂƚĂŵĂŶĂŐĞŵĞŶƚƐǇƐƚĞŵƌĞƋƵŝƌĞƐĂŶĞƚǁŽƌŬ ĐŽŶŶĞĐƚŝŽŶďĞƚǁĞĞŶŝƚǇ͛ƐŶĞƚǁŽƌŬĂŶĚ/,/͛ƐŶĞƚǁŽƌŬ͕/,/ĂŶĚŝƚǇƐŚĂůůƚĂŬĞƌĞĂƐŽŶĂďůĞ ĂŶĚĐƵƐƚŽŵĂƌǇƉƌĞĐĂƵƚŝŽŶƐƚŽƉƌĞǀĞŶƚƵŶĂƵƚŚŽƌŝǌĞĚĂĐĐĞƐƐƚŽŽƌƵƐĞŽĨƚŚĞŶĞƚǁŽƌŬ ĐŽŶŶĞĐƚŝŽŶƚŚƌŽƵŐŚƚŚĞŝƌƌĞƐƉĞĐƚŝǀĞŶĞƚǁŽƌŬƐ͘dŚĞƉĂƌƚŝĞƐĂŐƌĞĞ͕ŚŽǁĞǀĞƌ͕ƚŚĂƚĞĂĐŚ ƉĂƌƚǇŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƐĞĐƵƌŝƚǇŽĨŝƚƐŽǁŶŶĞƚǁŽƌŬ͘EĞŝƚŚĞƌƉĂƌƚǇƐŚĂůůďĞůŝĂďůĞƚŽ ƚŚĞŽƚŚĞƌĨŽƌƵŶĂƵƚŚŽƌŝǌĞĚĂĐĐĞƐƐƚŽƚŚĞŶĞƚǁŽƌŬĐŽŶŶĞĐƚŝŽŶ͕ƐŽůŽŶŐĂƐƚŚĞĂĐĐƵƐĞĚ ƉĂƌƚǇƐŚĂůůŚĂǀĞƚĂŬĞŶƌĞĂƐŽŶĂďůĞĂŶĚĐƵƐƚŽŵĂƌǇƉƌĞĐĂƵƚŝŽŶƐƚŽƉƌĞǀĞŶƚƐƵĐŚ ƵŶĂƵƚŚŽƌŝǌĞĚĂĐĐĞƐƐ͘ ϭϰ͘Ϯ͘ tŚĞƚŚĞƌŽƌŶŽƚŵĂƌŬĞĚĂƐƐƵĐŚ͕ĂŶĚǁŝƚŚŽƵƚƌĞŐĂƌĚƚŽƚŚĞŵĞĚŝĂŝŶ ǁŚŝĐŚƐƵĐŚƌĞĐŽƌĚƐĂƌĞƐƚŽƌĞĚ͕ŽŶĨŝĚĞŶƚŝĂů/ŶĨŽƌŵĂƚŝŽŶƐŚĂůůŵĞĂŶ͗ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ Ϯϭ ϭϰ͘Ϯ͘ϭ ŶǇďƵƐŝŶĞƐƐŽƌƚĞĐŚŶŝĐĂůŝŶĨŽƌŵĂƚŝŽŶƉĞƌƚĂŝŶŝŶŐƚŽƚŚĞƉĂƌƚŝĞƐ ŚĞƌĞŝŶŽƌƚŽƚŚŝƌĚƉĂƌƚŝĞƐ͕ǁŚŝĐŚŝƐĨƵƌŶŝƐŚĞĚ͕ĚŝƐĐůŽƐĞĚŽƌŵĂĚĞĂǀĂŝůĂďůĞďǇŽŶĞ ƉĂƌƚǇƚŽƚŚĞŽƚŚĞƌ͕ŝŶĐůƵĚŝŶŐ͕ǁŝƚŚŽƵƚůŝŵŝƚĂƚŝŽŶ͕ƐƉĞĐŝĨŝĐĂƚŝŽŶƐ͕ƉƌŽƚŽƚǇƉĞƐ͕ ƐŽĨƚǁĂƌĞ͕ŵĂƌŬĞƚŝŶŐƉůĂŶƐ͕ĨŝŶĂŶĐŝĂůĚĂƚĂĂŶĚƉĞƌƐŽŶŶĞůƐƚĂƚŝƐƚŝĐƐ͖ĂŶĚ ϭϰ͘Ϯ͘Ϯ DĞĚŝĐĂůƌĞĐŽƌĚƐ͕ƌĞƉŽƌƚƐĂŶĚŝŶĨŽƌŵĂƚŝŽŶ͕ĂƐǁĞůůĂƐĂŶǇŽƚŚĞƌ ŶŽŶͲŵĞĚŝĐĂůƌĞĐŽƌĚƐ͕ƌĞƉŽƌƚƐŽƌŝŶĨŽƌŵĂƚŝŽŶƉĞƌƚĂŝŶŝŶŐƚŽĐůĂŝŵĂŶƚƐƵŶĚĞƌƚŚĞ WƌŽŐƌĂŵ͘ ϭϰ͘ϯ͘ ĂĐŚƉĂƌƚǇĂŐƌĞĞƐƚŽƉƌŽƚĞĐƚŽŶĨŝĚĞŶƚŝĂů/ŶĨŽƌŵĂƚŝŽŶƌĞĐĞŝǀĞĚŚĞƌĞŝŶ ƵŶĚĞƌǁŝƚŚƚŚĞƐĂŵĞĚĞŐƌĞĞŽĨĐĂƌĞƚŚĂƚƐƵĐŚƉĂƌƚǇĞǆĞƌĐŝƐĞƐǁŝƚŚŝƚƐŽǁŶĐŽŶĨŝĚĞŶƚŝĂů ŝŶĨŽƌŵĂƚŝŽŶ;ďƵƚŝŶŶŽĞǀĞŶƚůĞƐƐƚŚĂŶƌĞĂƐŽŶĂďůĞĐĂƌĞͿĂŶĚƚŽůŝŵŝƚĂĐĐĞƐƐĂŶĚ ĚŝƐĐůŽƐƵƌĞŽĨŽŶĨŝĚĞŶƚŝĂů/ŶĨŽƌŵĂƚŝŽŶŽŶůǇƚŽƚŚĞŝƌĞŵƉůŽǇĞĞƐ͕ĂŐĞŶƚƐĂŶĚĐŽŶƚƌĂĐƚŽƌƐ ǁŚŽŚĂǀĞĂ͞ŶĞĞĚƚŽŬŶŽǁ͟ĂŶĚǁŚŽĂŐƌĞĞƚŽŵĂŝŶƚĂŝŶĐŽŶĨŝĚĞŶƚŝĂůŝƚǇŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚŝƐƐĞĐƚŝŽŶ͘ ϭϰ͘ϯ͘ϭ EŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞĨŽƌĞŐŽŝŶŐ͕ŝƚǇĂŐƌĞĞƐƚŽƉĞƌŵŝƚ/,/ƚŽ ĐŽŵƉŝůĞĂŶĚĚŝƐƐĞŵŝŶĂƚĞ͕ĚĞͲŝĚĞŶƚŝĨŝĞĚŝŶĨŽƌŵĂƚŝŽŶĨŽƌĂƵĚŝƚŝŶŐ͕ĐŽŵƉůŝĂŶĐĞ͕ ŝŶƚĞƌŶĂůĂƐƐĞƐƐŵĞŶƚƐ͕ƉƌŽĐĞƐƐŝŵƉƌŽǀĞŵĞŶƚĂŶĚƌĞůĂƚĞĚĂŶĂůǇƚŝĐƐ͕ďĞŶĐŚŵĂƌŬŝŶŐ ƉƵƌƉŽƐĞƐŽƌĨŽƌǁĂƌĚƚŽĂĚĂƚĂĐŽůůĞĐƚŝŽŶĨĂĐŝůŝƚǇ͕ĚĂƚĂĨŽƌYƵĂůŝĨŝĞĚůĂŝŵƐ ŚĂŶĚůĞĚƉƵƌƐƵĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͕ƉƌŽǀŝĚĞĚƚŚĂƚƐƵĐŚĨĂĐŝůŝƚǇĂŐƌĞĞƐŝŶǁƌŝƚŝŶŐ ƚŽŬĞĞƉŝƚǇ͛ƐĚĂƚĂĐŽŶĨŝĚĞŶƚŝĂů͘ ϭϰ͘ϯ͘Ϯ /,/ƐŚĂůůďĞĞŶƚŝƚůĞĚ͕ǁŝƚŚŽƵƚǀŝŽůĂƚŝŽŶŽĨƚŚŝƐƐĞĐƚŝŽŶĂŶĚǁŝƚŚŽƵƚ ƉƌŝŽƌĐŽŶƐĞŶƚŽĨŝƚǇ͕ƚŽƌĞƚĂŝŶĐůĂŝŵƐĂĚŵŝŶŝƐƚƌĂƚŝŽŶŝŶĨŽƌŵĂƚŝŽŶĂŶĚƚŽĨŽƌǁĂƌĚ ĐůĂŝŵƐĂĚŵŝŶŝƐƚƌĂƚŝŽŶŝŶĨŽƌŵĂƚŝŽŶƚŽŐŽǀĞƌŶŵĞŶƚĂŐĞŶĐŝĞƐƚŽƚŚĞĞǆƚĞŶƚ ƌĞƋƵŝƌĞĚďǇůĂǁĨŽƌƚŚĞƉƌŽƉĞƌƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞƐĞƌǀŝĐĞƐƐĞƚĨŽƌƚŚŚĞƌĞŝŶ͘ ϭϰ͘ϯ͘ϯ /,/ĂŐƌĞĞƐƚŚĂƚŝƚƐŚĂůůƌĞƐƉĞĐƚƚŚĞƐĞĐƵƌŝƚǇĂŶĚĐŽŶĨŝĚĞŶƚŝĂůŝƚǇŽĨ EŽŶƉƵďůŝĐWĞƌƐŽŶĂů/ŶĨŽƌŵĂƚŝŽŶďǇŝŵƉůĞŵĞŶƚŝŶŐĂĚŵŝŶŝƐƚƌĂƚŝǀĞ͕ƚĞĐŚŶŝĐĂůĂŶĚ ƉŚǇƐŝĐĂůƐĂĨĞŐƵĂƌĚƐǁŚŝĐŚƉƌŽƚĞĐƚƚŚĞĐŽŶĨŝĚĞŶƚŝĂůŝƚǇŽĨƌĞĐŽƌĚƐĂŶĚƉƌŽƚĞĐƚ ĂŐĂŝŶƐƚƌĞĂƐŽŶĂďůǇĂŶƚŝĐŝƉĂƚĞĚƚŚƌĞĂƚƐŽƌŚĂǌĂƌĚƐƚŽƚŚĞƐĞĐƵƌŝƚǇĂŶĚ ƵŶĂƵƚŚŽƌŝǌĞĚƵƐĞŽƌĚŝƐĐůŽƐƵƌĞŽĨƐƵĐŚƌĞĐŽƌĚƐ͘ ϭϰ͘ϰ͘ dŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚŝƐƐĞĐƚŝŽŶƐŚĂůůƐƵƌǀŝǀĞƚŚĞĞǆƉŝƌĂƚŝŽŶŽƌƚĞƌŵŝŶĂƚŝŽŶ ŽĨƚŚĞŐƌĞĞŵĞŶƚ͘ ϭϱ͘ 'ĞŶĞƌĂůWƌŽǀŝƐŝŽŶƐ͘ ϭϱ͘ϭ͘ EŽƚŝĐĞƐ͘ůůŶŽƚŝĐĞƐƚŚĂƚŵĂǇďĞŽƌĂƌĞƌĞƋƵŝƌĞĚƚŽďĞŐŝǀĞŶƵŶĚĞƌƚŚŝƐ ŐƌĞĞŵĞŶƚƐŚĂůůďĞƐĞŶƚƚŽƚŚĞƌĞƐƉĞĐƚŝǀĞƉĂƌƚŝĞƐĂƚƚŚĞĂĚĚƌĞƐƐƐĞƚĨŽƌƚŚďĞůŽǁ͘ŝƚŚĞƌ ƉĂƌƚǇŵĂǇĐŚĂŶŐĞƚŚĞƉůĂĐĞƐƚŽǁŚŝĐŚƐƵĐŚŶŽƚŝĐĞƐĂƌĞƚŽďĞƐĞŶƚĨƌŽŵƚŝŵĞƚŽƚŝŵĞďǇĂ ǁƌŝƚƚĞŶŶŽƚŝĐĞĂƐŚĞƌĞŝŶƉƌŽǀŝĚĞĚ͗ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϮϮ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ ϲϬϮϬtĞƐƚKĂŬƐ͕^ƵŝƚĞϭϬϬ ZŽĐŬůŝŶ͕ϵϱϲϳϱ ƚƚŶ͗ŚŝĞĨǆĞĐƵƚŝǀĞKĨĨŝĐĞƌ ŝƚǇŽĨ^ŽƵƚŚ^ĂŶ&ƌĂŶĐŝƐĐŽ ϰϬϬ'ƌĂŶĚǀĞŶƵĞ ^ŽƵƚŚ^ĂŶ&ƌĂŶĐŝƐĐŽ͕ϵϰϬϴϬ͘ ƚƚĞŶƚŝŽŶ͗ŝƚǇůĞƌŬ ϭϱ͘Ϯ͘ &ŽƌĐĞDĂũĞƵƌĞ͘ǆĐĞƉƚĨŽƌƉĂǇŵĞŶƚŽďůŝŐĂƚŝŽŶƐŚĞƌĞƵŶĚĞƌ͕ŶŽƉĂƌƚǇƐŚĂůů ďĞůŝĂďůĞĨŽƌĨĂŝůƵƌĞƚŽƉĞƌĨŽƌŵĂŶǇŽĨŝƚƐŽďůŝŐĂƚŝŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚƚŽƚŚĞĞǆƚĞŶƚ ƚŚĂƚƐƵĐŚďƌĞĂĐŚŝƐĐĂƵƐĞĚďǇĐŝƌĐƵŵƐƚĂŶĐĞƐďĞǇŽŶĚƐƵĐŚƉĂƌƚǇ͛ƐƌĞĂƐŽŶĂďůĞĐŽŶƚƌŽů͕ ŝŶĐůƵĚŝŶŐ͕ǁŝƚŚŽƵƚůŝŵŝƚĂƚŝŽŶ͕ĂĐƚƐŽĨ'ŽĚ͕ĐŝǀŝůĚŝƐƚƵƌďĂŶĐĞƐ͕ŶĂƚƵƌĂůĚŝƐĂƐƚĞƌƐ͕ŽƌĂĐƚŝŽŶƐ ŽƌĚĞĐƌĞĞƐŽĨŐŽǀĞƌŶŵĞŶƚĂůďŽĚŝĞƐ͘hƉŽŶƚŚĞŽĐĐƵƌƌĞŶĐĞŽĨĂŶǇƐƵĐŚĞǀĞŶƚ͕ƚŚĞĂĨĨĞĐƚĞĚ ƉĂƌƚǇ ŝŵŵĞĚŝĂƚĞůǇ ƐŚĂůů ŐŝǀĞ ŶŽƚŝĐĞ ƚŽ ƚŚĞ ŽƚŚĞƌ ƉĂƌƚǇ ĂŶĚ ƐŚĂůů ƵƐĞ ƌĞĂƐŽŶĂďůĞ ĐŽŵŵĞƌĐŝĂůĞĨĨŽƌƚƐƚŽƌĞƐƵŵĞƉĞƌĨŽƌŵĂŶĐĞ͘ ϭϱ͘ϯ͘ ^ĞǀĞƌĂďŝůŝƚǇ͘dŚĞŝŶǀĂůŝĚŝƚǇŝŶǁŚŽůĞŽƌŝŶƉĂƌƚŽĨĂŶǇƉƌŽǀŝƐŝŽŶŚĞƌĞŽĨƐŚĂůů ŶŽƚĂĨĨĞĐƚƚŚĞǀĂůŝĚŝƚǇŽĨĂŶǇŽƚŚĞƌƉƌŽǀŝƐŝŽŶ͘dŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚĂƌĞ ƐĞǀĞƌĂďůĞĂŶĚŝĨĂŶǇŽŶĞŽƌŵŽƌĞƐƵĐŚƉƌŽǀŝƐŝŽŶƐƐŚĂůůďĞĚĞƚĞƌŵŝŶĞĚƚŽďĞŝŶǀĂůŝĚ͕ŝůůĞŐĂů ŽƌƵŶĞŶĨŽƌĐĞĂďůĞ͕ŝŶǁŚŽůĞŽƌŝŶƉĂƌƚ͕ƚŚĞǀĂůŝĚŝƚǇ͕ůĞŐĂůŝƚǇĂŶĚĞŶĨŽƌĐĞĂďŝůŝƚǇŽĨĂŶǇŽĨƚŚĞ ƌĞŵĂŝŶŝŶŐƉƌŽǀŝƐŝŽŶƐŽƌƉŽƌƚŝŽŶƐƚŚĞƌĞŽĨƐŚĂůůŶŽƚŝŶĂŶǇǁĂǇďĞĂĨĨĞĐƚĞĚŽƌŝŵƉĂŝƌĞĚ ƚŚĞƌĞďǇĂŶĚƐŚĂůůŶĞǀĞƌƚŚĞůĞƐƐďĞďŝŶĚŝŶŐďĞƚǁĞĞŶƚŚĞƉĂƌƚŝĞƐŚĞƌĞƚŽ͘ŶǇƐƵĐŚŝŶǀĂůŝĚ͕ ŝůůĞŐĂůŽƌƵŶĞŶĨŽƌĐĞĂďůĞƉƌŽǀŝƐŝŽŶŽƌƉŽƌƚŝŽŶƚŚĞƌĞŽĨƐŚĂůůďĞĐŚĂŶŐĞĚĂŶĚŝŶƚĞƌƉƌĞƚĞĚƐŽ ĂƐƚŽďĞƐƚĂĐĐŽŵƉůŝƐŚƚŚĞŽďũĞĐƚŝǀĞƐŽĨƐƵĐŚƉƌŽǀŝƐŝŽŶŽƌƉŽƌƚŝŽŶƚŚĞƌĞŽĨǁŝƚŚŝŶƚŚĞůŝŵŝƚƐ ŽĨĂƉƉůŝĐĂďůĞůĂǁŽƌĂƉƉůŝĐĂďůĞĐŽƵƌƚĚĞĐŝƐŝŽŶƐ͘ ϭϱ͘ϰ͘ tĂŝǀĞƌ͘ǁĂŝǀĞƌŽĨĂďƌĞĂĐŚŽĨĂŶǇƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚŵƵƐƚďĞŝŶ ǁƌŝƚŝŶŐĂŶĚƐŚĂůůŶŽƚďĞĐŽŶƐƚƌƵĞĚĂƐĂǁĂŝǀĞƌŽĨĂŶǇƐƵĐĐĞĞĚŝŶŐďƌĞĂĐŚŽĨƚŚĂƚƚĞƌŵŽƌ ĂƐĂǁĂŝǀĞƌŽĨƚŚĞƚĞƌŵŝƚƐĞůĨ͘ƉĂƌƚǇ͛ƐƉĞƌĨŽƌŵĂŶĐĞĂĨƚĞƌĂŶŽƚŚĞƌ͛ƐďƌĞĂĐŚƐŚĂůůŶŽƚďĞ ĐŽŶƐƚƌƵĞĚĂƐĂǁĂŝǀĞƌŽĨƚŚĂƚďƌĞĂĐŚ͘EŽĨĂŝůƵƌĞŽƌĚĞůĂǇďǇĂƉĂƌƚǇƚŽĞŶĨŽƌĐĞŽƌƚĂŬĞ ĂĚǀĂŶƚĂŐĞŽĨĂŶǇƉƌŽǀŝƐŝŽŶŽƌƌŝŐŚƚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůĐŽŶƐƚŝƚƵƚĞĂƐƵďƐĞƋƵĞŶƚ ǁĂŝǀĞƌŽĨƚŚĂƚƉƌŽǀŝƐŝŽŶŽƌƌŝŐŚƚ͕ŶŽƌƐŚĂůůŝƚďĞĂǁĂŝǀĞƌŽĨĂŶǇŽĨƚŚĞŽƚŚĞƌƚĞƌŵƐĂŶĚ ĐŽŶĚŝƚŝŽŶƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘ ϭϱ͘ϱ͘ ƐƐŝŐŶŵĞŶƚ͘ EĞŝƚŚĞƌ ƉĂƌƚǇ ƐŚĂůů ĂƐƐŝŐŶ ƚŚŝƐ ŐƌĞĞŵĞŶƚ Žƌ ĂŶǇ ƌŝŐŚƚƐ ŚĞƌĞƵŶĚĞƌ͕ďǇůĂǁŶŽƌŽƚŚĞƌǁŝƐĞ͕ǁŝƚŚŽƵƚƚŚĞŽƚŚĞƌƉĂƌƚǇ͛ƐƉƌŝŽƌǁƌŝƚƚĞŶĐŽŶƐĞŶƚ͖/ŶƚŚĞ ĐĂƐĞŽĨĂŶǇƉĞƌŵŝƚƚĞĚĂƐƐŝŐŶŵĞŶƚŽƌƚƌĂŶƐĨĞƌŽĨŽƌƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͕ƚŚŝƐŐƌĞĞŵĞŶƚ ŽƌƌĞůĞǀĂŶƚƉƌŽǀŝƐŝŽŶƐƐŚĂůůďĞďŝŶĚŝŶŐƵƉŽŶ͕ĂŶĚŝŶƵƌĞƚŽƚŚĞďĞŶĞĨŝƚŽĨ͕ƚŚĞƐƵĐĐĞƐƐŽƌƐ͕ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ Ϯϯ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐ͕ ĂĚŵŝŶŝƐƚƌĂƚŽƌƐ ĂŶĚ ĂƐƐŝŐŶƐ ŽĨ ƚŚĞ ƉĂƌƚŝĞƐ ŚĞƌĞƚŽ͘ ůů ƉƵƌƉŽƌƚĞĚ ĂƐƐŝŐŶŵĞŶƚŽƌƚƌĂŶƐĨĞƌƐŝŶǀŝŽůĂƚŝŽŶŽĨƚŚŝƐ^ĞĐƚŝŽŶƐŚĂůůďĞŶƵůůĂŶĚǀŽŝĚ͘ ϭϱ͘ϲ͘ EŽŶͲ^ŽůŝĐŝƚĂƚŝŽŶ͘ŝƚǇĂĐŬŶŽǁůĞĚŐĞƐĂŶĚĂŐƌĞĞƐƚŚĂƚ/,/ƉĞƌƐŽŶŶĞůǁŚŽ ƉĞƌĨŽƌŵƚŚĞƐĞƌǀŝĐĞƐĂƌĞǀĂůƵĂďůĞĂƐƐĞƚƚŽ/,/ĂŶĚĚŝĨĨŝĐƵůƚƚŽƌĞƉůĂĐĞ͘ĐĐŽƌĚŝŶŐůǇ͕ŝƚǇ ĂŐƌĞĞƐ ƚŚĂƚ͕ ĚƵƌŝŶŐ ƚŚĞ ƚĞƌŵ ŽĨ ƚŚĞ ŐƌĞĞŵĞŶƚ͕ ĂŶĚ ĂĨƚĞƌ ĐŽŶƚƌĂĐƚ ƚĞƌŵŝŶĂƚŝŽŶ Žƌ ĐĂŶĐĞůůĂƚŝŽŶŽĨƚŚĞŐƌĞĞŵĞŶƚĨŽƌĂŶǇƌĞĂƐŽŶ͕ŝƚǁŝůůŶŽƚƐŽůŝĐŝƚ͕ĐŽŶƚƌĂĐƚŽƌŚŝƌĞ/,/ ƉĞƌƐŽŶŶĞů Žƌ ĞŶĐŽƵƌĂŐĞ ƚŚĞŵ ƚŽ ƐĞĞŬ ĞŵƉůŽǇŵĞŶƚ Žƌ ĂŶǇ ŽƚŚĞƌ ĐŽŶƚƌĂĐƚƵĂů ĂƌƌĂŶŐĞŵĞŶƚƐǁŝƚŚŝƚǇ͘dŚĞƉĂƌƚŝĞƐĨƵƌƚŚĞƌĂŐƌĞĞƚŚĂƚŝŶƚŚĞĞǀĞŶƚŝƚǇďƌĞĂĐŚĞƐƚŚĞ ƉƌŽǀŝƐŝŽŶŽĨƚŚŝƐƐĞĐƚŝŽŶ͕ŝƚǇƐŚĂůůƉĂǇ/,/ůŝƋƵŝĚĂƚĞĚĚĂŵĂŐĞƐŝŶƚŚĞĂŵŽƵŶƚŽĨƚǁŽƚŝŵĞƐ ƚŚĞĂŶŶƵĂůĐŽŵƉĞŶƐĂƚŝŽŶƚŽďĞƉĂŝĚƚŽƐƵĐŚƉĞƌƐŽŶĨŽƌĞĂĐŚďƌĞĂĐŚ͕ǁŚŝĐŚŝƐƚŚĞƉĂƌƚŝĞƐ͛ ŐŽŽĚĨĂŝƚŚĞƐƚŝŵĂƚĞŽĨƚŚĞĂŵŽƵŶƚŽĨĚĂŵĂŐĞƐƚŽ/,/ĨƌŽŵƐƵĐŚďƌĞĂĐŚ͘dŚŝƐ^ĞĐƚŝŽŶƐŚĂůů ƐƵƌǀŝǀĞƚŚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘/,/ĂŐƌĞĞƐŶŽƚƚŽƐŽůŝĐŝƚďƵƐŝŶĞƐƐĂƚĂŶǇŵĞĞƚŝŶŐ͕ ĨŽĐƵƐŐƌŽƵƉ͕ŽƌŝŶƚĞƌǀŝĞǁƌĞůĂƚĞĚƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͕ĞŝƚŚĞƌŽƌĂůůǇŽƌƚŚƌŽƵŐŚĂŶǇǁƌŝƚƚĞŶŵĂƚĞƌŝĂůƐ͘ ϭϱ͘ϳ͘ ,ĞĂĚŝŶŐƐ͘,ĞĂĚŝŶŐƐƵƐĞĚŝŶƚŚŝƐŐƌĞĞŵĞŶƚĂƌĞĨŽƌƌĞĨĞƌĞŶĐĞƉƵƌƉŽƐĞƐ ŽŶůǇĂŶĚŝŶŶŽǁĂǇĚĞĨŝŶĞ͕ůŝŵŝƚ͕ĐŽŶƐƚƌƵĞŽƌĚĞƐĐƌŝďĞƚŚĞƐĐŽƉĞŽƌĞǆƚĞŶƚŽĨƐƵĐŚƐĞĐƚŝŽŶ ŽƌŝŶĂŶǇǁĂǇĂĨĨĞĐƚƚŚŝƐŐƌĞĞŵĞŶƚ͘ ϭϱ͘ϴ͘ ZĞĐŽƌĚƐ͘dŚĞƉĂƌƚŝĞƐŚĞƌĞƚŽƐŚĂůůŵĂŝŶƚĂŝŶĂĚĞƋƵĂƚĞƌĞĐŽƌĚƐƌĞůĂƚŝŶŐƚŽ ƚŚĞďƵƐŝŶĞƐƐĐŽŶƚĞŵƉůĂƚĞĚŚĞƌĞƵŶĚĞƌŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŝƌƌĞƐƉĞĐƚŝǀĞĐƵƐƚŽŵĂƌǇ ƉƌĂĐƚŝĐĞƐĂŶĚĂƉƉůŝĐĂďůĞůĂǁ͘^ƵĐŚƌĞĐŽƌĚƐƐŚĂůůďĞŵĂŝŶƚĂŝŶĞĚĨŽƌĂƉĞƌŝŽĚŽĨĂƚůĞĂƐƚ ƚŚƌĞĞǇĞĂƌƐ͘ĂĐŚƉĂƌƚǇŚĞƌĞƚŽ͕ƚŚĞŝƌĂƵƚŚŽƌŝǌĞĚƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐĂŶĚĂƉƉƌŽƉƌŝĂƚĞĨĞĚĞƌĂů ĂŶĚƌĞŐƵůĂƚŽƌǇĂŐĞŶĐŝĞƐǁŝůůŚĂǀĞƚŚĞƌŝŐŚƚ͕ĂƚĂůůƌĞĂƐŽŶĂďůĞƚŝŵĞƐĂŶĚƚŽƚŚĞĞǆƚĞŶƚ ƉĞƌŵŝƚƚĞĚďǇůĂǁ͕ƚŽŝŶƐƉĞĐƚĂŶĚĚƵƉůŝĐĂƚĞĂůůƐƵĐŚƌĞĐŽƌĚƐ͖ƉƌŽǀŝĚĞĚ͕ŚŽǁĞǀĞƌ͕ƚŚĂƚƐƵĐŚ ĞǆĂŵŝŶĂƚŝŽŶƐƐŚĂůůďĞĐĂƌƌŝĞĚŽƵƚŝŶĂŵĂŶŶĞƌƚŚĂƚƌĞĂƐŽŶĂďůǇƉƌŽƚĞĐƚƐƚŚĞĐŽŶĨŝĚĞŶƚŝĂůŝƚǇ ŽĨŝŶĚŝǀŝĚƵĂůŵĞĚŝĐĂůŝŶĨŽƌŵĂƚŝŽŶ͘dŚĞŽďůŝŐĂƚŝŽŶƚŽŵĂŝŶƚĂŝŶƐƵĐŚƌĞĐŽƌĚƐĂŶĚƉƌŽǀŝĚĞ ƐƵĐŚŝŶĨŽƌŵĂƚŝŽŶƐŚĂůůŶŽƚƚĞƌŵŝŶĂƚĞƵƉŽŶƚŚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘/,/ĂŐƌĞĞƐ ƚŚĂƚŝƚǁŝůůŶŽƚƵƐĞƚŚĞƌĞĐŽƌĚƐŽĨŝƚǇ͛ƐƉŽůŝĐǇŚŽůĚĞƌƐŝŶƚŚĞŵĂƌŬĞƚŝŶŐŽĨĂŶǇĨŽƌŵŽĨ ŝŶƐƵƌĂŶĐĞĐŽǀĞƌĂŐĞǁŝƚŚŽƵƚŝƚǇ͛ƐƉƌŝŽƌǁƌŝƚƚĞŶĐŽŶƐĞŶƚ͘ ϭϱ͘ϵ͘ 'ŽǀĞƌŶŝŶŐ>ĂǁĂŶĚŽŶƐĞŶƚƚŽ:ƵƌŝƐĚŝĐƚŝŽŶ͘dŚĞƉĂƌƚŝĞƐŚĞƌĞƚŽĂŐƌĞĞƚŚĂƚ ƚŚŝƐŐƌĞĞŵĞŶƚƐŚĂůůďĞŝŶƚĞƌƉƌĞƚĞĚĂŶĚĐŽŶƐƚƌƵĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞůĂǁƐŽĨƚŚĞ ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͕ĂŶĚƚŚĂƚƚŚĞƐƵďƐƚĂŶƚŝǀĞůĂǁƚŽďĞĂƉƉůŝĞĚŝŶĂŶǇĂƌďŝƚƌĂƚŝŽŶƐŚĂůůďĞ ƚŚĞƐƵďƐƚĂŶƚŝǀĞůĂǁŽĨƐĂŝĚƐƚĂƚĞ͕ĞĂĐŚǁŝƚŚŽƵƚƌĞŐĂƌĚƚŽĐŽŶĨůŝĐƚŽĨůĂǁƐƉƌŝŶĐŝƉůĞƐ͘dŚĞ ƉĂƌƚŝĞƐĨƵƌƚŚĞƌĂŐƌĞĞƚŽĂŶĚĚŽŚĞƌĞďǇǀŽůƵŶƚĂƌŝůǇƐƵďŵŝƚƚŚĞŵƐĞůǀĞƐƚŽƚŚĞƐƵďũĞĐƚ ŵĂƚƚĞƌ ũƵƌŝƐĚŝĐƚŝŽŶ͕ ƉĞƌƐŽŶĂů ũƵƌŝƐĚŝĐƚŝŽŶ͕ ƐĞƌǀŝĐĞ ŽĨ ƉƌŽĐĞƐƐ͕ ĂŶĚ ǀĞŶƵĞ ŽĨ ƚŚĞ ĂƌďŝƚƌĂƚŝŽŶ͕ĂƐǁĞůůĂƐƚŽƚŚĞ^ƵƉĞƌŝŽƌŽƵƌƚŽĨ^ĂŶDĂƚĞŽŽƵŶƚǇĨŽƌƚŚĞƐŽůĞƉƵƌƉŽƐĞŽĨ ĐŽŵƉĞůůŝŶŐĂƌďŝƚƌĂƚŝŽŶŽƌĞŶĨŽƌĐŝŶŐĂŶǇĂƌďŝƚƌĂƚŝŽŶĂǁĂƌĚ͘ ϭϱ͘ϭϬ͘ /ŶĚĞƉĞŶĚĞŶƚŽŶƚƌĂĐƚŽƌƐ͘dŚĞƉĂƌƚŝĞƐƚŽƚŚŝƐŐƌĞĞŵĞŶƚĂƌĞŝŶĚĞƉĞŶĚĞŶƚ ĐŽŶƚƌĂĐƚŽƌƐ͕ ĂŶĚ ŶŽ ĂŐĞŶĐǇ͕ ƉĂƌƚŶĞƌƐŚŝƉ͕ ũŽŝŶƚ ǀĞŶƚƵƌĞ Žƌ ĞŵƉůŽǇĞĞͲĞŵƉůŽǇĞƌ ƌĞůĂƚŝŽŶƐŚŝƉŝƐŝŶƚĞŶĚĞĚŽƌĐƌĞĂƚĞĚďǇƚŚŝƐŐƌĞĞŵĞŶƚ͘EŽƉĂƌƚǇŚĂƐƚŚĞĂƵƚŚŽƌŝƚǇƚŽ ĐŽŶƚƌĂĐƚĨŽƌŽƌďŝŶĚƚŚĞŽƚŚĞƌƐŝŶĂŶǇŵĂŶŶĞƌǁŚĂƚƐŽĞǀĞƌ͘dŚŝƐŐƌĞĞŵĞŶƚĐŽŶĨĞƌƐŶŽ ƌŝŐŚƚƐƵƉŽŶĂƉĂƌƚǇĞǆĐĞƉƚƚŚŽƐĞƌŝŐŚƚƐĞǆƉƌĞƐƐůǇŐƌĂŶƚĞĚŚĞƌĞŝŶ͘ y,//d tŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶůĂŝŵƐĚŵŝŶŝƐƚƌĂƚŝŽŶ^ĞƌǀŝĐĞŐƌĞĞŵĞŶƚ /ŶƚĞƌĐĂƌĞ,ŽůĚŝŶŐƐ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ͕/ŶĐ͘ Ϯϰ ϭϱ͘ϭϭ͘ ŶƚŝƌĞŐƌĞĞŵĞŶƚ͘dŚŝƐŐƌĞĞŵĞŶƚƐĞƚƐĨŽƌƚŚƚŚĞĞŶƚŝƌĞƵŶĚĞƌƐƚĂŶĚŝŶŐĂŶĚ ĂŐƌĞĞŵĞŶƚ ŽĨ ƚŚĞ ƉĂƌƚŝĞƐ ĂŶĚ ĂŶǇ ĂŶĚ Ăůů ƉƌĞǀŝŽƵƐ ĂŐƌĞĞŵĞŶƚƐ Žƌ ƵŶĚĞƌƐƚĂŶĚŝŶŐƐ͕ 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Jon Lord, Chief Revenue Officer 6020 West Oaks Drive, Suite #100, Rocklin, CA 95765 Phone: (949) 463-8502 Email: [email protected] City of South San Francisco WORKERS’ COMPENSATION THIRD PARTY ADMINISTRATOR SERVICES Due Date: March 20, 2024 EXHIBIT A to Resolution 24-447 Table of Contents Section 1: Transmittal Letter ................................................................................. 1 Section Two: General Information ....................................................................... 2 Section Three: Staffing ........................................................................................... 4 Section Four: Claims Management & Investigative Services ......................... 5 Section Five: Managed Care Services ............................................................. 12 Section Six: Risk Management Information System (RMIS) ............................ 14 Section Seven: Ancillary Services ...................................................................... 17 Section Eight: Transition Plan .............................................................................. 18 Section Nine: Financial Condition and References ........................................ 20 Section Ten: Fee Proposal ................................................................................... 20 Exhibits Exhibit 1 – Resumes Exhibit 2 – Staffing Model Exhibit 3 – Sample Reports Exhibit 4 – Sample Stewardship Report Exhibit 5 – Value-Added Services Exhibit 6 – Sample Transition Plan and Implementation Timeline Exhibit 7 – Confidential Audited Financial Report Exhibit 8 – References Exhibit 9 – )HH Proposal Exhibit 10 – Contract Exceptions EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 1 Section 1: Transmittal Letter City of South San Francisco Leah Lockhart, Human Resources Director 400 Grand Avenue, South San Francisco, CA 94080 Subject: City of South San Francisco Workers’ Compensation Third Party Administrator Services Dear Ms. Leah Lockhart: Thank you for the opportunity to submit a proposal to administer theCity of South San FranciscoWorkers’ Compensation Third Party Administrator Services. Intercare Holdings Insurance Services, Inc. (“Intercare”) was founded in 1994 with the goal of providing superior workers’ compensation third party claims administration services to governmental entities. InterMed Cost Containment Services, Inc. (“InterMed”), Intercare’s Managed Care Services Division, was founded in 1997 and to support and provide integrated managed care and bill review services on a bundled and unbundled basis. In addition to the high-touch customization and integrated services, Intercare brings extensive experience handling similar programs, new and evolving technology, and targeted claims management programs to support the City at all levels. We recognize that consistency and continuity are the weak links between strategic goals and reality so we provide our managers with the tools to assess the quality of the work, as well as empower and provide each manager with the authority to implement necessary changes. The City’s hands-on approach and involvement provides a terrific opportunity for collaboration to ensure we are building and developing a first class dedicated claims department for the City’s program. A key factor in both instances is having the right personnel whose skill level, work ethic, and commitment are aligned with yours. Our mission is one that encourages accountability and teamwork to achieve the best outcome for the City’s injured workers and your program as a whole. Below is the contact information for the proposal lead and backup financial advisor whom, during this RFP process, have the full authority to commit firm resources. The lead will answer all questions pertaining to the proposal during the RFP review process. Address:6020 West Oaks Blvd, Suite 100, Rocklin, CA 95765 Main Number:(949) 463-8502, Fax: (916) 781-5540, Office: (916) 677-2500 Lead Contact:Jon Lord, Chief Revenue Officer, [email protected], Backup Financial Advisor:Jodi Ellington, Chief Financial Officer [email protected] All information submitted in this proposal is true and correct. All fees proposed have not been knowingly disclosed to any other firm responding to the RFP. Intercare has made no attempt to induce any other company to submit or not submit a response to this RFP for the purpose of restricting competition. We have a firm understanding of the City’sprogram goals and objectives and we believe we are the “right fit” to become the City’s new risk management partner. The City of South San Francisco will be a very important client to Intercare. Sincerely, Jon Lord, Chief Revenue Officer EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 2 Section Two: General Information x Provide a brief description of the organization, including its history, size, geographic focus, structure of firm ownership and any parents, affiliates, or subsidiaries of the firm. Intercare has been in the business of providing superior workers’ compensation claims administration services for over 30 years. Founded in 1994, Intercare is a privately held corporation headquartered in California. We specialize in the public sector, which comprises over 75% of our claims volume. We are rooted in California and are committed to transparency, customer satisfaction, and superior outcomes. We have a long-standing reputation of being flexible and responsive, which enables us to tailor risk management solutions to meet the individual needs of our clients. Our core services include: y Workers’ compensation claims administration y Liability claims administration y Special investigations y MMSEA Section 111 Mandatory Reporting y Risk management support y Training y Managed care services o Bill review o Lien resolution o Utilization review o Nurse case management o Triage and telemedicine Seasoned Management Our organization is supported by seasoned senior executives who are actively involved in the management of our company and committed to delivering superior services and a high-quality work product. Collectively, our executive team has over 220 years in combined claims administration experience. Please see Exhibit 1 – Resumes for their experience and certifications. Our principals include: Name Title Experience (Years) Agnes Hoeberling Chief Executive Officer 40+ Jodi Ellington Chief Financial Officer 20+ Alan Avriett Chief Information Officer 40+ Jon Lord Chief Revenue Officer 30+ Maggie Jaltorossian Senior Vice President, Workers’ Compensation Division 30+ Danielle Buri-Beaton Senior Vice President, Client Services 30+ Kerenza Alvarez Vice President, Managed Care Division 20+ Size and Locations Intercare is one of the few privately held mid-sized firms in our industry. This allows us to offer our clients a nimble boutique approach to claims handling while also providing the depth and capacity of a large organization. While over 350 claims and managed care professionals provide services, 95% of our workers’ compensation business is in California. We maintain offices across California, including: Fresno, Glendale, Salinas, Rocklin (Headquarters), and Orange. Figure: The Intercare family of companies EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 3 x Discuss any recent changes in ownership, management, or staffing, or such changes that are expected to be executed within the next year, if any. Intercare is a financially stable corporation that: y has no pending or recent changes in ownership, management, or staffing y has never filed nor is contemplating filing for bankruptcy y has no pending litigation which will present a substantial financial risk to Intercare y has pending mergers or acquisitions x Describe firm’s experience with public entities and specifically municipalities. Indicate any employers of similar size and/or geographical location and/or loss experience as the City with which the firm has experience to include fire and police departments. Intercare’s hands-on experience with municipalities includes the provision of Labor Code Section 4850 benefits, the application of presumptive injuries for certain classes of employees, the integration of workers’ compensation benefits into City and County retirement programs, and other specialized benefit programs. Due to the nature and longevity of public sector employees’ careers, we place a greater emphasis with these types of injured workers on determining work restrictions and coordinating alternative or modified return- to-work initiatives. This focus helps the public employer get its injured workers back on partial or full-time duty as soon as possible and, as a result, often reduces disability payments. Through this process, we have learned that the crucial aspect to reducing TTD and 4850 leave times, as well as reducing the overall program costs, is collaboration between and coordination of all parties involved in the claim process. Intercare works with a wide range of public entities across the state, including the City of San Leandro, City and County of San Francisco, City of San Jose, City of Napa, and City of Redwood City, to name a few. x Review the Scope of Services and Performance Standards for Claims Administrators attached as Addendum No. 3 and indicate whether your Firm is able to meet these standards or would request any modifications or changes (please specify). Intercare has reviewed the Scope of Services and Performance Standards for Claims Administrators attached in Addendum 3 and agrees to abide by the City’s requirements. Our own internal requirements and Best Practices meet and, in several instances, exceed the requirements contained in the Scope. Program administration will be governed by the stricter of the City’s and Intercare’s requirements. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 4 Section Three: Staffing x Include a proposed staffing to be assigned to the City’s account. The proposer shall provide a dedicated claims team and sufficient permanent claims personnel assigned specifically to the City. Indicate the number of claims and level of adjusters to be assigned for: o Open indemnity claims o Medical only claims o Other claims Please see Exhibit 2 – Staffing Model for more information. x As an exhibit to the proposal, provide resumes of the proposed adjuster(s) and claims supervisor and their respective qualifications, including their direct involvement providing services to California municipal clients in the last three years and experience with a California Public Agency with public safety employees, PERS and Labor Code 4850 The City reserves the right to interview all finalists for the claims manager, claims supervisor and claims adjuster positions. The City also reserves the right to request reassignment of selected proposer employees that are not performing in a manner satisfactory to the City. We propose the following team to administer the City’s program: y LuAnn Koppel, Associate Vice President of Claims Administration y Aimee Harris, Claims Manager y Heather Spivey, Claims Supervisor y Connie Hampson, Account Manager Please see Exhibit 1 – Resumes for more information regarding each proposed team member’s experience and qualifications/certifications. All proposed staff have experience and direct involvement providing services to California municipal clients and public safety employees, PERS, and LC 4850. Intercare acknowledges the City’s right to interview all finalists for the claims manager, claims supervisor and claims adjuster positions and right to request reassignment of selected proposer employees the City deems unfit. x What is your annual turnover ratio for claims personnel in the office that would handle this account? How is the turnover calculated? The turnover rate for 2023 for claims personnel located in the Rocklin, CA office is 9.7%. This is calculated by dividing the involuntary terms in 2023 by the average headcount in 2023. x If workloads increase over the life of the Service agreement, propose how your firm would meet the increased staffing needs. As part of the quality assurance procedure, the supervisor, manager and senior management monitor caseloads, as well as claim opening and closing statistics on a monthly basis. In the event that caseloads fall outside the agreed upon caseload limit for a period of 90 days, Intercare and the City will meet to review the statistics and evaluate whether a change in the staffing model is appropriate. If the parties agree that a permanent change in the staffing model is necessary, a change in the fee structure will be discussed between the parties to align caseloads with the new staffing structure and promptly implemented. x Describe your process for recruiting, hiring, and selecting adjusters, including standard requirements at each level, and whether and how client input is included in the process. When hiring a new adjuster, Intercare looks for individuals who have a Bachelor's degree from a four-year College or University; at least seven years related experience; or equivalent combination of education and EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 5 experience. Intercare requires a high degree of claims handling expertise to include a minimum of five years’ experience managing indemnity cases. Adjuster experience must include complex or high potential subrogation, rehabilitation, medical management, and legal issues. Our adjusters also possess the Workers’ Compensation Claims Professional (WCCP) designation, and certificate of completion of the Self-Insurance Administrator’s Examination. All Intercare supervisors, managers, and account managers possess OSIP certifications and are licensed adjusters. All supervisors assigned to the City account will be OSIP-certified and up-to-date with continuing education requirements to maintain their adjuster certification with the State. When hiring claims assistants, Intercare looks for individuals with problem-solving and customer-service skills, as well as an ability to work well in a team. Claims assistants should also have 1-2 years of related experience and knowledge of word processing. If selected as City of South San Francisco’s TPA, we will work with you collaboratively to present the most suitable candidates for the program and we invite the City to participate in the interview and selection process. We want to ensure we have the right fit for the City’s program. We acknowledge the City’s right to interview all finalists for the claims manager, claims supervisor and claims adjuster positions as well as the right to request reassignment of selected proposer employees the City deems unfit. x Describe your staffing back up plan in cases when a team member(s) is not available. Intercare utilizes the “buddy system” to ensure our claims desks are covered in the event of absences. We are also fortunate to have retired adjusters who enjoy working temporary assignments, and we often call upon them when there is a need. Section Four: Claims Management & Investigative Services x What is your firm’s definition of a successfully administered claim? Intercare views a successfully handled claim as one that meets or exceeds the agreed upon desired program outcomes. We use our own and industry-benchmarking data to evaluate whether we have outlier claims and proactively look for ways to reduce or mitigate exposure. It is especially important with these types of claims and with catastrophic claims that all parties are aware of and involved with the claims strategy to achieve the best potential outcome. Our focus is to keep the claim moving by creating a timetable that maps each milestone to ensure the best outcomes both for the employee and client. x What is your firm’s philosophy on Return to Work Programs? What experience does your firm have working with third-party return-to-work providers? The key to the successful implementation of a return-to-work program rests on the ability of the claims staff to obtain timely and accurate information regarding work restrictions. We take a proactive approach that focuses on return-to-work capabilities rather than disability. This approach includes securing a job description or any other viable information to provide to the physician and working collaboratively with the clinic. Upon determination of medical status and restrictions, the adjuster will immediately communicate the work restrictions with the City’s risk management department to determine if any internal light-duty options are available within the restrictions. If internal options are not available, Intercare works with several return-to- work vendors, including Re-Employability, NPA, and other local vendors, to place the employee in a temporary modified or light-duty program that is suitable for the injured worker. During the account implementation process, we work with the risk management team to review the identified top qualified EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 6 RTW companies and select one that would work best with the City’s philosophy. These programs enable injured workers to return to the workforce as soon as they are released to modified work and earn income while becoming reacquainted with the work experience following an injury and/or a period of disability. The programs are managed by the vendors to ensure safety with onsite supervision and effective protocols for oversight throughout the placement period. These programs coordinate with NFP agencies such as American Heart Association, American Red Cross, YMCA, Food Banks, and other non-profit organizations to find placements that meets the injured worker’s medical requirements. Employers can significantly reduce workers’ compensation disability costs by returning the injured worker to the workforce as soon as they are capable. x Describe how your Return to Work Programs or Providers receive work status reports of claims in a timely manner and how you coordinate with the City and City’s departments upon receipt of these reports to determine if a claimant is able/unable to return to work? Return to work protocols for the City are provided to the medical facility or primary treating physician in an effort to encourage early return to work. The claims adjuster sets a diary for the day of or for the day following a medical appointment, depending upon time of day for appointment, and sends an email to the City outlining restrictions and/or a modified duty plan. In addition, our team will stay in contact with the medical provider based on set diaries or by appointment to obtain work status of the injured worker to verify if they are taken off work or given work restrictions. The City and the claims adjuster will work together to determine if the injured employee will be able to return to work. x Describe your procedure in supporting the City and City’s departments in returning employees back to work. Intercare will work with injured employees, City staff, and other agencies to get employees back to work as soon as feasible. Upon receipt of appropriate documentation, Intercare will immediately notify City personnel of the employee’s work restrictions. Intercare has developed a return-to-work program that we will integrate into the City’s processes. Intercare will implement a customized workflow process to assist the City with each step of the return-to-work program. During the implementation process all resources will be identified and a program will be built based on the City’s available resources and the availability of modified positions. Our staff is required to talk with the treating physician every two weeks while an employee is off work. Information regarding the availability of restricted work will be provided to the doctor, including job descriptions, if appropriate. The adjuster must pursue information concerning specific restrictions, as well as functions that the employee is capable of completing. Once the restrictions are established, the adjuster will work with City staff to determine if they can offer a position that falls within those restrictions. Once a determination is made that the City can provide the worker with an appropriate job, the adjuster will coordinate the communication of that job offer to the injured worker. At no time will the adjuster act independently, but always in conjunction with the City. x Describe the criteria used to identify and institute subrogation against outside parties. Describe the extent of subrogation services provided by your staff. Intercare adjusters are expected to identify and coordinate subrogation potential and recovery on every claim. Prior to pursuing subrogation recovery, we believe it is prudent to determine through thorough investigation whether a viable subrogation right exists. Such investigation may include identifying the responsible party and applicable insurance coverage for that party, market value, applicable law, and EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 7 recoverability of damages. Subrogation recovery is a critical opportunity to recoup loss payments. We believe our ability to complete the subrogation recovery process promptly, transparently, and successfully is an important value-added service to our clients. x Describe your firm's reserving practices and philosophies. Include a description of how frequently claim reserves will be reviewed with this account, and how your files will document periodic supervisory review. Intercare’s reserving practices are based on the company’s philosophy to reserve for the ultimate probable cost of the claim based upon all available information developed at the time of the reserve analysis. Initial reserves are set within 72 hours of receipt of a new claim. Subsequent reserves are established upward or downward, with the receipt of new information that will change the estimate of the claim file’s probable financial outcome. Reserve worksheets and claim notes are utilized to document all reserve estimates in the appropriate categories based on the extensive, hands-on experience of our claims staff. The adjuster conducts ongoing review of reserves every 90 days, or sooner if significant events occur that could change the potential, anticipated financial exposure of the claim (up or down). Reserves are adjusted within five days of receipt of evidence that impacts the estimated future liability. Whether it is a quality control audit or a supervisory review, the file is documented with findings and if needed a recommended plan of action and notification to adjuster and or supervisory when required. Because we use a paperless system this information is updated in real-time to the file notes and is available for viewing by the City online. x Describe your firm's procedure for notifying the excess workers' compensation carrier of losses exceeding the SIR, and follow-up procedures for loss recovery. Claims meeting the definition of reportable excess workers’ compensation claims are reported to the excess carrier in accordance with the excess policy. Subsequent reports are transmitted to the excess carrier on a quarterly basis on all indemnity claims and on a semi-annual basis on all future medical claims, or sooner if claims activity warrants, or at such other intervals as requested by the excess carrier. Reimbursement requests are submitted in accordance with the excess carrier’s reporting and reimbursement practices on a quarterly or semi-annual basis depending on claims payment activity. During the implementation meeting, we will discuss the City’s and the excess carrier’s requirements for excess reporting. x Describe claim settlement philosophy of your firm. On what basis would your firm recommend taking a case to trial rather than settling? Our Best Practices require us to consider and evaluate the most appropriate type of settlement or course of action based on the case factors, the employee’s status with the City and the financial implications to the City. In addition, we will always discuss the options and the rationale for our recommendation with the City before proceeding with the settlement. In an effort to coordinate resolution of the City’s claims, the adjusters maintain frequent contact with injured employees, manage medical progress, facilitate return to work with the departments, and collaborate with the City to identify legal and claim exposures, to develop settlement strategies. Intercare’s goal is to document claim issues, develop and execute an action plan. The supervisor ensures the action plan is clear, concise, and timely executed. This will substantiate that all phases of a workers’ compensation case are addressed timely and effectively and the claim is postured for settlement. It is the Claims Adjuster’s responsibility to evaluate the cases for settlement and always be alert of any opportunities for disposing of the case and closing the exposure versus taking a claim to trial. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 8 When submitting a settlement or further course of legal action recommendation to the City for approval, the adjuster will provide an analysis of the claim, the dollar value and rationale for all recommended settlements. The adjuster will consider all financial exposures and potential issues that need to be closed prior to claim settlement; including Medicare Set-Asides, future medical care, rehabilitation benefits, etc. The value of these exposures will be included in the claim settlement evaluation. Intercare requires full documentation and analysis on all issues prior to all claim settlements. All information will be clearly documented in the electronic claim notes, and will be included in all requests for settlement authority that exceed Intercare’s authority threshold. x What is your firm's approach to determining whether to delay and investigate a claim? The adjuster will complete their preliminary investigation to determine compensability by conducting a three-or-four-point contact within one (1) business day of receipt of the new claim to gather facts about the injury from the City’s Risk Management team, the injured worker, the treating physician and any witnesses. The adjuster will also review the initial index report to confirm prior claim and injury history. The initial contacts and investigation will be clearly documented within the claim notes to support the initial compensability determination. If the investigation involves a questionable claim, additional investigation may be required, and the City will be contacted with an explanation as to why a more in-depth investigation is recommended. Initial compensability decisions will be documented within the initial 30 days of the employer’s date of knowledge, or within 7 days of Intercare’s receipt of claim. During the initial implementation meeting additional a more in-depth conversation on City delay/investigation criteria will be discussed. x Describe your firm's procedures for handling questionable claims and identifying cases where the investigation of a questionable claim may be necessary. During the three-point contact the adjuster evaluates all information available, if red flags are evident such as un-witnessed injury, questionable mechanism of injury, personnel action/disgruntled employee, late reporting, injury occurred on day before or following days off of work, employee is involved in recreational activities, etc. The adjuster will also review Index (ISO) results for accident/injury history and will determine if there is a need for assignment to an investigator for an AOE/COE investigation and/or surveillance. Prior to the assignment, the adjuster will seek authority from the City to make a referral to the assigned panel of investigators. Upon the initial identification of suspected fraud, the adjuster will discuss the case with the supervisor and the City regarding SIU referral. Within 24 hours of decision to refer to SIU, the adjuster will submit a SIU referral form with clear indication of the red flag indicators along with the detail of the four elements of fraud. The fraud filing is provided to the City for its review and submission to the Department of Insurance Fraud Bureau and the District Attorney’s Office. x Discuss the extent of investigative services to be provided by staff of your firm. Describe the procedures to be utilized in determining when an outside investigation firm is required. Intercare is one of very few TPAs with an in-house SIU that complies with the Department of Insurance Requirement for insurance carriers. All claims staff are trained to identify and detect specific red flags that suggest additional investigation is needed. Intercare’s SIU staff will conduct background checks as necessary based on specific red flags identified by the claims adjuster on any specific claim. Any surveillance or recorded interviews deemed necessary will be EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 9 requested on the Partnerlink website and an outside investigation firm will be selected from the existing panel to conduct the investigation Our SIU has achieved stellar results for our clients. These include: y 1134 cases internally, of which 236 cases were submitted to the Department of Insurance (DOI) since the program’s inception in 2004 y 61 prosecuted or arrested y 55 pending cases accepted by DOI and local district attorneys y $34,571 in fines and penalties awarded y 1662 days of jail time y $910,683.60 in ordered restitutions x Describe the protocols to be utilized in determining when an outside investigation firm is required. When the validity of the claim is questionable, an on-site AOE/COE investigation can and may be assigned to make a compensability determination within the timeframe allowed by law. The Claims Adjuster will also review Index results for accident/injury history, and may, with the City’s approval, request services from the City’s panel of investigators. x If services are contracted out, does your firm receive commissions and/or any other type of compensation from the companies used? The pre-negotiated rate with preferred investigation panel is a complete pass through cost. Intercare does not profit or receive commissions from the companies used. x What is the claim adjuster's protocol for reviewing and updating open claims? Depending on the claims status, diaries are automatically and manually added on individual claims as assignments and reminders. Some tasks, such as Accept/Deny decision reminders, Index reminders, and POA reminders are automatically set up in the system based upon our internal business rules. The Manager, Supervisor, Adjuster and Assistant may manually enter diaries for themselves, or for other team members to follow up on task assignments and action items. The diary system assists our claims team in providing prompt and accurate service, and ensures compliance with the Labor Code, Client Service Instructions and Intercare’s own Best Practice Guidelines. x Describe record-keeping procedures to be utilized for all aspects of the self-insurance claims administration. All active files are digitized and electronically stored. Any physical files that are not digitized are stored in the managing claims office. Once a file has been closed, Intercare will continue to store that physical file within the managing claims office for a period of one year. After one year, closed physical files are transferred to our off-site storage facility: Iron Mountain. Iron Mountain barcodes each file they receive for easy storage and retrieval. If Intercare needs to retrieve a closed physical file from Iron Mountain, we make a phone call with the claim number and claimant name; Iron Mountain will locate the file using the barcode, and the file will be mailed to our office. The cost of claims storage and/or retrieval is included in our standard claims administration fees. Intercare upgraded to a paperless claims system in July 2011. Therefore, on receipt of a new report of injury the claim is set up in our paperless system. All documents are scanned and digitally stored within our system so there is no physical paper file. Intercare will keep digital images of all claim documents indefinitely at no additional cost. All electronic data is the property of the City. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 10 x Describe, in detail, your procedures for making initial and follow-up contact with injured employees. Include the estimated frequency of phone calls to injured employees and procedures for delivery of benefits to injured employees. Within 24 hours of receipt of a new claim, the adjuster will complete the three-point contact, gathering facts of the injury from the injured worker, the City, and the treating physician. The adjuster will also explain the workers’ compensation process and benefits available to the injured worker, and ask if they have any questions. The adjuster shall also collect or validate the six (6) data elements required by CMS for MMSEA reporting. The adjuster will thoroughly document all findings within the claim notes. This initial investigation helps to establish compensability and triggers an ongoing practice of analyzing and scrutinizing the developments of the loss throughout the life of the claim. In some cases, additional contact may be necessary to complete the preliminary compensability determination. The claims adjuster will continue to contact the injured worker by phone at least every two weeks while they are out on disability and will continue contact on a monthly basis until such time as the claim is resolved. This method encourages collaboration between the different stakeholders at the City and Intercare, ensures familiarity with the specific protocols for each department, supports efficiency, and reinforces continuity on the program and consistency in outcomes. Temporary Disability benefits are issued from our claims system and are scheduled and on diary to issue every two weeks as scheduled if the loss time continues. The Claims Assistants makes the contact with the physician every two weeks and documents the file within the Disability Tracking module on dates and restrictions. The information is reviewed by the Adjuster to determine if the disability is in line with the case and the allowed loss days per ODG Best Practices. Adjuster contacts the injured worker every two weeks while they’re on disability to discuss their treatment plan and their well-being. Benefit checks can be issued via traditional checks methods or via ACH. x Does your company provide an 800 number for injured employees or online capabilities? Please describe. Intercare does provide an 800 number for injured employees. Intercare’s New Claim Reporting Wizard is available 24/7 at no additional fee. When a claim occurs, the City will be able to report the claim in multiple ways, including email, and e-fax; however, we recommend utilizing our online reporting module. Our online reporting module is password protected and is set up with full security features including advance encryption. By logging into our online module with a City-specific login, the system will pre-fill program/department data, such as policy and coverage information. The form completion wizard will guide the City representative through the rest of the process on our user-friendly reporting application. Intercare’s secure ID and Report Wizard guarantee complete, accurate, and confidential reporting of new claims every time. Upon receipt of a new claim, an electronic acknowledgement will be sent back to the Client and other key parties, including the State of California. x Describe procedures for contact with the City on claim status. Our staff knows that without regular communication with all stakeholders in the claims process, simple matters can sometimes go off the rails. That is why our staff maintains constant, proactive communication with all relevant parties. This includes returning all calls and emails within 24 hours, or one business day of receipt. In addition to monthly status reports, we can set-up regularly scheduled conference calls to discuss claim strategy. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 11 x Does your firm conduct on-site client file reviews? If yes, explain recommended protocol and frequency of client file reviews. Intercare conducts quarterly claim status reviews. These status reviews can be conducted in-person or telephonically, depending on the City’s preference. During the transition and implementation process Intercare’s Account Manager will work with the City to establish the format for those file reviews. The reviews can be presented directly to the Risk Management staff or with the individual City departments. The purpose of the Claim Reviews is to discuss claim status, analyze data, develop solutions, and identify strategies, with the City and City Attorney’s Office. The Claims Supervisor will work with the City to identify file review criteria and special reporting categories to assist in a thorough analysis of the City’s open caseload. Please see Exhibit 3 – Sample Reports for more information. We offer our InterAct Program – Round table strategy meetings to discuss issues on specific claims to direct injured workers back to a productive work life sooner, or to focus on a more aggressive disposition strategy for more complex and harder to close files. x Could a claim or file review be held at the request of the City at other than scheduled times, and if so, is there an additional charge to the service fee for such a review? Yes. There is no additional charge or service fee for additional claim or file reviews held at the City’s request. x Does your firm provide training to client managers involved in reporting occupational injuries and worker’s compensation procedures? If so, is there an additional charge for such training? Intercare will provide staff training to any employees at the City involved in the processing or filing of claims at no additional charge. This onsite training covers reporting claims electronically through the Intercare web claims reporting portal, WC 101, Initial Investigation, and Fraud Awareness. x Describe how your firm identify problem areas and recommended solutions to the City, including consultation services, as needed, to ensure the success of the program, including cost containment and reduction of losses. Intercare will carry out a complete review of the City’s performance and trends as needed and at a minimum on a quarterly basis. We can pull key performance indicators (KPIs) for the City and review these results during these quarterly reviews. Using these KPIs, we will collaborate to identify opportunities for improvement with an innovative approach to tackle these challenges together. Annual Stewardship Report: In addition, your assigned account manager will also prepare an annual stewardship report to review the City’s program. The report will be presented at an annual stewardship meeting, which will serve as a program review comparing the City’s results from the most current year with results from previous program years. It will also include a comparison of the City’s results with industry and statewide benchmarks, where available. This type of annual review will allow the City and Intercare to analyze the efficiency of the program, quantify cost savings, and make goals for the next program year. A sample stewardship report can be found in Exhibit 4 – Sample Stewardship Report. For more information about service we provide to identify problem areas and integrate appropriate solutions, please refer to Exhibit 5 – Value-Added Services. x Describe how your firm, if asked, will provide guidance on managing multiple disciplined cases that may impact other laws in addition to workers’ compensation, including federal and state ADA/FEHA disability and leave laws. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 12 Intercare will provide guidance on managing disciplined cases that impact other laws in addition to workers’ compensation. Our claims professionals have extensive experience administering and coordinating statutory workers’ compensation benefits with other benefits, including those related to CalPERS, County Employees Retirement Law Act of 1937 (commonly referred to as “37 ACT”), CalSTRS (California State Teachers’ Retirement System), Fair Employment and Housing Act (FEHA), and Americans with Disabilities Act (ADA). The integration of these disability benefits with the City’s programs and the coordination of any other benefits the employee may have through the City is critical in ensuring that the employee not only receives all the benefits the employee is entitled to receive quickly and accurately, but also in ensuring that the City is not overpaying with duplicate benefits. x Describe how your firm documents temporary/modified/light duty in the claim file that includes medical diagnosis, work restriction and estimated duration of restriction. We communicate all restrictions, temporary or permanent, to the client as soon as we have knowledge. When a permanent work restriction has been outlined in a medical report, we immediately contact the client to alert them of the need to begin the interactive process. Ultimately, there are no differences in how we communicate work restrictions. Temporary or permanent work restrictions are both critical information that the City needs to know to make informed business decisions regarding returning an injured employee to work. The medical diagnosis, work restriction, and estimated duration are documented in the claims system and can be viewed by City staff. Section Five: Managed Care Services Please provide proposer’s managed care/medical cost-containment program including, but not limited to your medical provider network, case management services, utilization review, bill review, etc. Indicate which services are owned by the firm, and which services are contracted out. We propose to provide managed care services through our wholly owned subsidiary founded in 1997, InterMed Cost Containment Services, Inc. (“InterMed”). InterMed was founded to supplement the service requirements of Intercare’s claims administration clients. To address this question, we have provided below a listing of all services that InterMed offers. InterMed understands that integrated disability management reduces cost containment expenses and results in a more efficient process. That is why we support our clients by offering the below services on a bundled or un-bundled basis. InterMed Bill Review Services – Quick, efficient and effective bill review process that integrates UR decisions to ensure appropriate and timely payment or objection of medical services. High accuracy rate means reduced duplicate bills and frequency reconsideration rates resulting in lower frequency of independent bill review requests by medical providers. InterMed Nurse Case Management – Our nurse’s highest priority is placed on Return-to-Work programs. InterMed Utilization Review Services – Focused on custom UR protocols for each client ensures adjuster’s ability to process Requests for Authorizations at their level on more than 60% of the treatment, thereby reducing your UR cost. InterMed Custom MPN Development and Maintenance – This includes client specific websites. Optum Pharmacy Benefit Management – Our partner program with Optum has no revenue sharing arrangement. Intercare analyzes pharmacy spending and works with you to implement a PBM program that reduces drug costs while eliminating bill review costs associated with prescription bills. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 13 Durable Medical Equipment and Specialty Diagnostic Network – At or below the Official Medical Fee Schedule (OMFS), these services are integrated with other managed care services to reduce loss costs. Transportation and Interpreters on Call (IOC) – Our networks are at or below U&C. MMSEA Reporting – We provide MMSEA Reporting without using a third-party agent. x If services are contracted out, does the firm receive commissions and/or any other type of compensation from the companies used? InterMed supports our clients through the strategic, value-added services and networks, which are provided on a pass-through cost basis. InterMed does not receive any commissions or other type of compensation for pre-screened and pre-negotiated service panels and networks. x Discuss the recommended panel of medical experts, including specialists who may be utilized to review and/or provide treatment. We will provide the City a panel of selected general practitioners, specialists, hospitals, and emergency treatment facilities for its employees, which will be reviewed regularly. x Describe procedures for auditing of prescriptions and medical costs. All prescriptions are reviewed through our PBM network Optum, which provides the ability to further review prescription costs, monitor changes in prescription drug prices, and identify utilization trends. All bills are reviewed by an analyst and not auto-adjudicated to ensure inappropriate charges and coding is identified before the bills goes through the repricing engine. After data validation and cross reference, the system will reduce all bills to OMFS and PPO/MPN. If the code is in the California fee schedule, then those rates will apply. If the CPT code falls outside the fee schedule, then a Usual and Customary re-pricing will be applied. x Does your firm contract with medical facilities for discounted fees for services such as MRIs, CT scans, etc.? Explain. Through its partnership with SMS, InterMed is able to provide its clients access to diagnostic service providers including MRIs, CTs and other services at discounted rates passing that savings along to its clients. x Describe the types of cases that would benefit from medical case management. What type of activities should the City expect from a nurse case manager? When should medical case management services begin and end? The necessity for case management services is determined on a case-by-case basis. During the implementation process, Intercare will work with the case management provider and to develop the City criteria that will be used to refer cases to medical case management. Should the City choose to use the case management services of our managed care affiliate, InterMed, an InterMed case manager will provide, at no cost, a preliminary triage of the file to determine the extent and necessity of case management involvement. The case manager will present their findings of the triage to the claims adjuster for their approval to get case management involved on the file. InterMed, in conjunction with the adjuster and City, will determine the most appropriate method to manage the case (telephonic or on-site medical case management) prior to a referral. This is also accomplished via our triage process. InterMed will remain on the case until the case management no longer has a positive impact on the claim, for example, when the injured worker returns to full duty, is actively participating in their medical care, or has reached P & S status. Case management will also cease if the adjuster no longer sees the merit of case management activity on the file. All efforts are made to make the process as cost effective as possible. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 14 Recommended full or task NCM assignments include, but are not limited to: pre/post-operative care, RTW, field case management, reduction/weaning off poly-pharmacy, obtaining work status, achieving P&S/MMI, medication review, finding care within the MPN, communication between the injured worker and provider. We will work with the City to establish engagement criteria for both telephonic case management and field case management. x Please describe your firm’s philosophy regarding utilization review plans, including development and use of prior authorization processes. InterMed is a URAC accredited Utilization Review Organization and has been since 2016 before DWC mandated URAC accreditation. InterMed has a UR plan filed with the State of California. The UR plan details InterMed’s UR process including a preauthorization treatment plan. InterMed will provide fully integrated utilization review services with the City’s claims administration program. Utilization review is performed in- house by InterMed nurses who are located in the same office as the claims adjusters. Intercare adjusters currently perform UR in over 60% of the RFA’s received. The percentage of RFA’s done at the adjuster level varies and depends on the client specific referral criteria. Intercare believes that a non-clinician, including WC adjusters, can perform a majority of UR. We have identified a list of routine and low severity criteria, such as initial diagnostic tests like x-rays, and a short course of Physical Therapy, as examples of medical requests that can be authorized at the Adjuster level. Section Six: Risk Management Information System (RMIS) x Describe your firm’s RMIS system, including whether your company maintains an in-house system or if it is contracted out. If contracted out, indicate name, address and phone number of company. Intercare utilizes Claims Enterprise, one of the workers’ compensation industry’s best claims administration platforms, for our claims administration platform. Intercare uses the paperless version and continuously upgrades to ensure it remains up-to-date. Additionally, Intercare undergoes an annual SSAE18 compliance audit by an independent review firm. The audit reviews and certifies Intercare’s compliance with insurance industry standards regarding claims processing and the security and protection of all related information. Intercare hosts its own data and supports various systems with dedicated IT staff. All programming and developmental changes to the platform are maintained by Intercare staff. Our experienced IT team handles all system upgrades, repairs and data maintenance in-house. We have the knowledge and experience to build customized interfaces between any outside vendors the City may want to keep as part of your current program. Our flexibility and adaptability allow Intercare to meet the individual needs of the City regardless of who they are, where they are located, or whom they partner with. The following features of our system allow our staff and the City to monitor all aspects of an individual claim and the program as a whole. Online Access – Intercare will provide two licenses for online, password protected access to our claims administration platform. These licenses will provide real-time access to all program data and run customized, ad-hoc reports as desired. Additional login licenses are available for a small annual fee. New Claim Reporting Wizard – When a claim occurs, the City will be able to report the claim in multiple ways, including email, and e-fax; however, we recommend utilizing our online reporting module. Our online reporting module is password protected and is set up with full security features including advance encryption. By logging into our online module with a City-specific login, the system will pre-fill program/department data, such as policy and coverage information. The form completion wizard will guide the City representative through the process on our user-friendly reporting application. Intercare’s secure ID and Report Wizard ensure complete, accurate, and confidential reporting of new claims. Upon receipt of a EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 15 new claim, an electronic acknowledgement will be sent back to the City and other key parties, including the State of California. These services are included in our standard service package. Reserves – Claims Enterprise will record all reserve changes, including name of person(s) making and approving the change, dollar amounts adjusted up/down, date and time stamp of event, and rationale for change. Reserve analysis reports are available to The City and its departments for a real time perspective of the financial exposure on a per claim basis, or for the program as a whole. Diary System – Diaries are automatically and manually added on individual claims as assignments and reminders. Some tasks, such as Accept/Deny decision reminders, Index reminders, and POA reminders are automatically set up in the system based upon our internal business rules. The Manager, Supervisor, Adjuster and assistant may manually enter diaries for themselves, or for other team members to follow up on task assignments and action items. The diary system assists our claims team in providing prompt and accurate service, and ensures compliance with the Labor Code, Client Service Instructions and Intercare’s own Best Practice Guidelines. Payment History – Claims Enterprise records a complete payment history. All medical and non-medical payments are recorded, including information of payment amount, payment recipient, tax ID number, dates of services, pay category, check number, check date, etc. Additionally, all voids and vouchers are recorded with the appropriate deductions and credits applied to claim reserves. All data can be sorted by preferred category for a targeted analysis of program data. Notes and Documentation – Claims Enterprise provides a complete series of notepad types to help the claims administration team categorize and organize notes and documentation. For example, all notes regarding Physical Therapy will be under the notepad header “Physical Therapy”, and all notes regarding work status will be placed under the notepad header “Work Status”. This organization and internal procedure allow anyone within our claims administration team to sort notes based upon notepad type and assist in the quick retrieval of claims information. All incoming mail is imaged upon receipt. These documents play a decisive role in claims administration and managed care decisions. By having these documents instantly available at the click of a mouse, our Adjusters and Nurses are working together in a more efficient and environmentally friendly way. Correspondence – All correspondence that is sent out by Intercare’s claims administration team is saved electronically within Claims Enterprise. This includes the notice of compensability, all indemnity benefit notices, mileage forms, appointment letters, legal correspondence, objection letters to providers, etc. All correspondence is date stamped and in chronological order of date produced within the system. Ad-hoc Reporting – In addition to the standard report package described later in the proposal, the Claims Enterprise system has a robust ad-hoc reporting system that allows reports to be created for all data elements captured in the system. Should the City and/or its departments choose to receive monthly data transmissions, Intercare will provide the City and its departments with training in the ad-hoc reporting system, to generate their own reports. OSHA Reporting – Intercare’s claims system will automatically compile OSHA data and Danielle Buri-Beaton will generate an OSHA Log for The City and its departments on an annual basis every January; monthly status reports can be prepared upon request. x If services are contracted out, does your firm receive commissions and/or any other type of compensation from the companies used? Intercare’s RMIS system is not subcontracted out. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 16 x Is use of RMIS included as part of service fee, or are there additional charges? Include fee schedule if applicable. The Claims Enterprise platform is included as part of our standard claims administration services. x Describe the various reports to be prepared by firm related to the program. Provide sample reports (generated from RMIS), indicating frequency of reports. Intercare will coordinate all of the City’s reporting needs. Please refer to Exhibit 3 – Standard Reports for samples of typically requested reports that are included in our standard report package. Our standard report package includes the following reports, which can be provided in a variety of formats at the frequency the City’s requires: Managed Care Reports x Bill Review x Utilization Review x Nurse Case Management x Pharmacy Benefit Management (PBM) Reference Tables x Organization Listing by Level x Business Rule Listing x Reserve Transaction Listing x Adjuster Caseload Reports Frequency Reports x Claims by Body Part x Claims by Location x Claims by Claimant Type x Claims by Occupation Payment Processing Reports x Check Runs x Scheduled Payments x Vouchers General Reports x Claim Status x Litigation Summary x Self-Insured Retention (SIR) Limit Loss Run Reports x Special Investigations Unit (SIU) Report x Loss Control Reports x Actuarial Reports x Lag Time x Loss Triangles State/Federal Reports x Occupational Safety and Health Administration (OSHA) Reports x Self-Insured Plans (SIP) Summary Report x California Employment Development Department (EDD) Report x Does your firm provide OSIP, Cal/OSHA reporting as part of your services? Provide sample reports – how do you sort these reports if an establishment has multiple establishment sites, also indicate frequency of reports. Intercare’s claims system automatically compiles OSHA data and will generate OSHA 300, OSHA 300a, and OSHA 301 logs. These OSHA logs will be generated for the City and its departments on an annual basis every January; monthly status reports can be prepared upon request. x Describe how your RMIS accurately tracks days away from work, days on job transfer/work restrictions, 4850 usage (public safety positions) and how the City can easily access this information. The RMIS system tracks all restricted work dates and full days away from work in a tab within the system. Any TTD and 4850 payments are automatically tracked and then any modified/restricted days are input by our claims team. This allows us to accurately pull data for several client reports including the OSHA 300 and OSHA 300a logs. This information can be viewed in the claims system by City staff. x Describe the data conversion process that would be required if firm is selected and specify a timeline. Intercare will ensure a successful data transfer and uninterrupted transition to Claims Enterprise, our claims management system. The data conversion process is conducted in-house by our experienced Information and Technology Team. Intercare has successfully completed over 60 data conversions from 21 different source systems in the last 8 years, including from the incumbent’s RMIS system. Danielle Buri-Beaton – SVP of Client Services will oversee the entire transition and implementation of the program. Danielle leads the transition and manages timelines to ensure all parties are on track for the target EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 17 go-live date, she works very closely with our in- house IT team, which includes Dean Nakatani, Application Support Manager, and a group of IT analysts and developers. All are located in the same office as Danielle and the proposed location of the program. Their expertise includes: MMSEA Section 111 interfaces, custom reporting and development. The IT staff is knowledgeable in all aspects of claims adjusting, managed care services and data mapping. Intercare is confident that we will deliver a successful data transition and will ensure that there is no interruption of benefits. Please refer to the below “Section Eight: Transition Plan” and Exhibit 6 – Sample Transition Plan and Implementation Timeline for more information and a timeline. x Is the cost of regular and any special reports included as part of the service fee? Please explain any additional charges. Reports can be customized according to City specifications, including data captured and layout organization. Research, design, and development of reports that can be completed within 4 hours are provided at no additional fee. A report that takes more than 4 hours to complete is subject to an hourly rate of $175 per hour. All reports are available as PDF or Excel and can be provided electronically or hard copy. x Is the firm able to contractually agree that all claim files, electronic data processing / management information system records, and all records generated on behalf of the City will be owned by the City? Intercare will maintain all records, including claim files, electronic data processing/management information systems, and agree that all records generated on behalf of the City are owned by the City. x Describe your firm’s ability to provide one or more City representative(s) to allow online access to claim information and data. Indicate name of computer system and software. Intercare will provide authorized City staff with password-protected, read-write access to Intercare’s claims administration platform, Claims Enterprise. These licenses will provide real-time access to all of the City’s program data and will allow the City to run customized, ad-hoc reports as desired. Additional login licenses are available for a small annual fee. x Describe details of type(s) of information to which the City will have access. With its password-protected logins, the City will be able to view financial information, reserves, payment history, diaries, claim notes, and work restrictions, among other areas of our system. Users with read and write access can access the system online real-time and will have access to all data in the claim file including reserves, notes, diaries, correspondence, medical reports that are not marked confidential, financial transactions, etc. In addition, the user has the ability to input notes and diaries but no ability to input reserves, payments nor ability to modify any other data elements. View only users can view only information designated by the City. The designated Account Manager will work with you to determine what information you would like to include in the view only category for users who are not in the risk management department. x Discuss the fee structure for installing and maintaining remote access to your firm’s computer system. Our claims administration system is completely web-based; therefore, there is no hardware or system for you to install. All upgrades are performed internally at Intercare and are at our own expense. The City only need access to a computer and high-speed internet in order to access our RMIS system. Section Seven: Ancillary Services The City prefers that the selected proposer have working knowledge of the American with Disabilities Act (ADA) and Fair Employment and Housing Act (FEHA) and be able if asked to provide guidance on managing EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 18 multiple disciplined cases that impact other laws in addition to workers’ compensation, including federal and state ADA/FEHA Disability and leave laws. x Please provide proposer’s ancillary services. Indicate which services are owned by the firm, and which services are contracted out. Intercare has built system integrations and data efficiencies across our menu of services that help adjusters expedite care, support access to medical and ancillary services, to meet all regulatory reporting requirements, and to help achieve cost containment goals. All ancillary services are contracted out. x Provide details about the ancillary benefit products and services offered. InterMed uses ProCare and SMS for transportation, translation, DME, Home Health, and diagnostics. x Provide any pricing advantages through existing carrier relationship for these services. Our network pricing it at or below fee schedule. x Describe how the products will be administered and serviced. Referrals will be sent to either ProCare or SMS depending on the services requested and work with our partners to ensure treatment is rendered. x If services are contracted out, does the firm receive commissions and/or any other type of compensation from the companies used? We do not receive commissions or other compensations from the companies contracted for ancillary services. The City reserves the right to work with selected proposer to select preferred vendors for ancillary products and related services. The City reserves the right to provide recommendations on preferred vendors for ancillary services. Intercare acknowledges and agrees to the above statement. Section Eight: Transition Plan Proposer should describe the transition and implementation plan if selected. Proposer shall outline how they will transition claims administration, reporting and processing from current TPA in a manner that will be at no cost to the City and will ensure continuity of service for existing and new claims. The plan description should include discussion regarding the following: x Any previous experience taking over as Third-Party Administrator x Transition plan timeline x Plan for transfer of electronic data x Plan for transfer of physical files, open and closed x Service of required notices upon transition x Information required from the City or its current TPA for transition purposes x Method to be used to communicate status of transition plan to the City x Methods to ensure continuity of care and customer service for claimants Upon notification of award, Intercare will schedule an implementation meeting directly with the City to begin the transition plan. The primary contact person for the transition will be Danielle Buri-Beaton – Senior Vice President of Client Services who will identify the transition committee, oversee all transition tasks, and monitor contractual obligations for compliance. EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 19 Intercare will conduct multidisciplinary meetings weekly during the implementation stage to ensure all items essential to a successful implementation are addressed and on-track. In addition to the weekly meetings, there will also be concurrent department-specific meetings with representatives from Intercare IT, Finance, and Operations to outline a systematic conversion plan and timeline specific to the City. Following each call, a complete written summary of the meetings is distributed to all involved parties to ensure our progress is being communicated. Part of the implementation process consists of staff education and training on the agreed upon workflow and procedures. These training sessions involve all front-line employees and end users, and are conducted prior to our go-live date. Data Conversion: Upon award of contract, your assigned account manager will initiate communication with the City to coordinate the transfer of sample data and the complete claims history. Throughout the implementation project, your account manager will manage the data conversion and implementation project to ensure that everyone has understood the City’s needs and expectations. The entire data conversion process is completed in-house by our experienced IT department. Step 1: Sample Layout – Intercare’s IT department requests and receives a sample layout of the data from the City’s prior TPA. Step 2: Data Mapping Process – Once the sample data is received, Intercare’s IT team begins the mapping processes and schedules a timeline for final data entry and final data submission. Step 3: Testing – Once all data elements are mapped from the City’s sample data to Intercare’s system, testing is performed. A complete claims history transfer to the Intercare Claims Enterprise system will take place after the data is reconciled. Intercare schedules this conversion process during a mutually agreed upon weekend so that our staff can concentrate 100% on the City’s conversion. Step 4: Live Production – The City’s file history will be available for claims staff and the City on the Monday following the conversion weekend. Where possible, claim numbers created by prior TPA(s) will be retained and used to ensure data consistency with converted data. If “re-using” the claim numbers is not possible or not preferred by the City, Intercare can re-number the claims during the conversion process while retaining the original claim for reference within the data structure. Technical Triage: Intercare will organize and implement a Technical Triage Plan upon completion of the data conversion. This includes a requirement that the incumbent administrator pay all indemnity benefits in advance for up to 4 weeks of benefits to avoid a delay in the Provision of Benefits. the City’s assigned adjusters are provided with a spreadsheet and triage template to complete their “technical triage” for their assigned caseload with instructions to review the files for accuracy on compensability, subrogation, fraud detection, wages and benefit calculation, reserve accuracy, medical treatment plan, plan of action and any other open issues that need to be addressed immediately or upon diary. Intercare management and supervisors are involved throughout the entire triage process to ensure that a review is completed within 60-90 days of conversion to avoid any delays while applying our claims handling processes and practices. Transition Tasks: During the implementation phase, Intercare will work with the City to schedule transition tasks and timeframes to ensure a seamless implementation. Transition tasks include, but are not limited to: y Confirming communication preferences during the transition and implementation phase, and ongoing program management EXHIBIT A to Resolution 24-447 City of South San Francisco Workers’ Compensation Third Party Administrator Services 20 y Establishing client-specific service instructions, including but not limited to: caseload limitations, staffing requirements, dollar reserve and settlement authority levels, reporting format preferences and frequency, investigation, and litigation protocols y Setting program goals and benchmarks y Transferring physical files from the incumbent’s office(s) to the Intercare office, if applicable. y Setting up EDI links with preferred vendors as necessary y Setting up banking preferences y Identifying program resources for litigation management y Identifying training requirements for the City representatives and employees y Notifying each claimant and service provider of the change in claims administrator within agreed upon timeframe in accordance with best claims practice y Acquiring and transitioning new and existing incidents, claims, and lawsuits. Sample Timeline: A sample transition and implementation plan and timeline is included in this proposal as Exhibit 6 – Sample Transition Plan and Implementation Timeline. This plan includes a timeline of tasks required to set up the City’s program, including the development of Client Service Instructions and procedural manuals that are specific to the City. Estimates for time spent on development of such documents and projects will depend on the level of customization, and will be discussed in detail upon award of contract. Section Nine: Financial Condition and References Each proposer shall submit with their RFP response: three (3) client references including company name, mailing address, contact person name and phone number; and proposer’s financial records in the form of a completed statement of financial condition which should consist of an independently audited income statement and balance sheet from their last complete fiscal year. These items may be used to assist the City in making a final determination. Intercare is a wholly owned subsidiary of Intercare Holdings, Inc. (IHI). IHI has a consolidated audited financial statement prepared each year by independent auditors. The annual audited statements include Intercare as a member of the consolidated financial group. Attached marked as Exhibit 7 – Confidential Audited Financial Statements is a copy of Intercare’s latest audited financial statements. Please refer to Exhibit 8 – References for current clients including the City of San Leandro, City and County of San Francisco, and City of Redwood City. Section Ten: Fee Proposal Please provide a detailed explanation of costs to be charged to the City for all mandatory services, as listed above. The explanation should indicate administrative and management support and staff allocations showing the specific salary allocation. The proposers cost factor and profit factor should be shown in arriving at the required service fee. Proposers that offer additional preferred services or additional suggested services, in addition to the mandatory services, all as listed above, should separately detail any additional cost. Proposers pricing may be for bundled or unbundled services. If the City deems it to be in its best interest it will contract for services separately or bundled or any combination. Proposals that agree to provide (2) two additional (1) one-year extension options at the City's sole option should likewise provide a detailed explanation of the cost to be charged if either or both said option years are exercised. Please see Exhibit 9 – &ĞĞ Proposal for a detailed explanation of costs to be charged to the City for all mandatory services listed in this proposal. EXHIBIT A to Resolution 24-447 EXHIBIT 1 Resumes EXHIBIT A to Resolution 24-447 Agnes Hoeberling Chief Executive Officer Agnes joined Intercare in November 2005 as its Chief Operating Officer. She was promoted to President of Intercare Holdings, Inc. in June 2017 and, most recently, assumed the CEO role in January 2020. Agnes is an industry veteran who is recognized as an inspirational leader who motivates staff to attain peak performance and to do what is right. Her progressive leadership role is directly linked to attainment of key business goals and objectives. She has a distinguished record of success and achievement over 40+ years in the insurance and risk management industry. Her operational experience includes managing workers' compensation, personal disability, general liability, USL&H, bill review, case management, utilization review, and special investigation units. She has held various leadership positions in both medium-sized and large national third party administrators. Prior to joining Intercare, she was a Senior Vice President for the western region of a large national TPA. In that role, she managed a region of over 500 employees. As Intercare Holdings, Inc.’s Chief Executive Officer, Agnes is responsible for the overall direction of IHI, including ensuring the organization’s policies and overall operational result in terms of employee and client satisfaction, regulatory compliance, and financial stability are within the parameters set by the IHI Board. Agnes holds a Bachelor of Science in Accounting from Divine Word College in the Philippines. In addition to holding a Qualified Manager’s license in California from the Department of Insurance, she is also licensed as a general adjuster in several states. Industry Experience x Intercare Holdings, Inc. – Chief Executive Officer 2020 to Present x Intercare Holdings, Inc. – President 2017 to 2019 x Intercare Holdings Insurance Services, Inc. – EVP & COO 2005 to 2017 x Cambridge Integrated Services Group, Inc. – Sr. Vice President of Western Region 2003 to 2005 x Cambridge Integrated Services Group, Inc. – Vice President, Claims Operations 2000 to 2002 x Cambridge Integrated Services Group, Inc. – Director of Client Services 1998 to 2000 x Presidium, Inc. / Hertz Claims Management – Division Manager 1993 to 1998 x Hertz Claims Management – Claims Manager 1989 to 1993 x Bierly and Associates – Claims Supervisor 1986 to 1989 x Various Organizations – Claims Adjuster 1980 to 1986 Education/Certifications x Bachelor of Science – Accounting x State of California Qualified Manager’s License x Independent Adjuster License – Various States x Self-Insurance Administrator Certificate, State of California x Workers’ Compensation Claims Professional Designation x Workers’ Compensation Claims Administrator Certificate EXHIBIT A to Resolution 24-447 Jodi Ellington Chief Financial Officer Jodi joined Intercare in February 2021 as its Chief Financial Officer. She has over 20 years of financial and accounting experience in the TPA industry. Jodi is an experienced executive finance leader dedicated to developing collaborative efforts between and among all departments of an organization and identifying and executing process improvements. As Intercare Holdings Inc.’s Chief Financial Officer, Jodi is responsible for all finance and accounting functions. She served as Chief Financial Officer of a medium-sized national third party administrator previously for 16 years. In addition to managing the accounting and finance department, her former responsibilities include managing HR, IT and Shared Services. Jodi holds a Bachelor of Science in Business Administration with an Accounting option from California State University, Hayward. She is a licensed Certified Public Accountant with the State of California. Industry Experience x Intercare Holdings, Inc. – Chief Financial Officer 2021 to Present x Athens Administrators – Chief Financial Officer 2006 to 2021 x Athens Administrators – Vice President of Finance 2004 to 2006 x Kaiser Permanente – Assistant Controller, Financial Shared Services 2003 to 2004 x Kaiser Permanente – Senior Accounting Manager 2000 to 2003 Education/Certifications x Bachelor of Science in Business Administration, Accounting Option x Certified Public Accountant – California State Board of Accountancy EXHIBIT A to Resolution 24-447 Alan Avriett Chief Information Officer Alan Avriett began working with Intercare in May 2006 and oversees information technology, network and facilities, licensing and insurance, as well as the central mailroom. Alan has been in the insurance industry for over 30 years in carrier, brokerage, and third party administrator operations. Alan began his career as a programming manager with Ranger Insurance, where he was responsible for over 40 programmers and analysts. In 1987, Alan became the AVP of Corporate Applications for American International Group in New York, with responsibility for corporate reporting systems and the programming support of the workers’ compensation program. Alan was the manager of over 60 IT professionals with operations in multiple states. In 1991, Alan joined the Galtney Group, whose professional liability insurance operations included Western Indemnity Insurance and Healthcare Insurance Services. Alan’s responsibilities included all aspects of information technology as well as responsibility for human resources and facilities management for over 315 employees and 13 locations in the U.S. In 2001, Alan joined A.J. Gallagher as Senior Vice President of Administration in connection with the sale of Healthcare Insurance Services. Industry Experience x Intercare Holdings Insurance Services, Inc. – Vice President and CIO 2006 to Present x A.J. Gallagher – Senior Vice President of Administration 2001 to 2006 x Galtney Group – Information and Technology 1991 to 2001 x American International Group – AVP of Corporate Applications 1987 to 1999 Education/Certifications x Bachelor of Science in Computer Science – University of South Carolina EXHIBIT A to Resolution 24-447 Jon Lord Chief Revenue Officer Jon joined Intercare as chief revenue officer in 2020. In this role, he works with the senior executive team on company-wide and individual-sourced business development opportunities, sales team management, and ongoing development of our strategic marketing plan. Jon brings over 25 years of sales and marketing leadership and management experience to his role with Intercare. He has a fundamental understanding of how the claims administration business operates and a strong understanding of marketing and developing these services. Jon began his career as a claims adjuster in 1999, when he was recruited by Keenan and Associates, who later promoted him to regional manager. In that position, he managed a team of 30 claims administration professionals. He then joined the business development team at Keenan in 2002. Jon most recently served as Vice President of Business Development at Sedgwick/York Risk Services, a national TPA. During his ten-year tenure there, Jon was responsible primarily for public entity business development in the western region and for strategic sales for York’s national public entity pooling business. Industry Experience x Intercare Holdings Insurance Services, Inc. – Chief Revenue Officer 2020 to Present x Sedgwick – Vice President, Business Development 2019 to 2020 x York Risk – Managing Vice President 2010 to 2019 x Keenan – Vice President Sales, Southern Region & Claims Manager 1999 to 2002 Education/Certifications x ĂĐŚĞůŽƌŽĨƌƚƐŝŶWƐǇĐŚŽůŽŐǇ͕CalŝĨŽƌŶŝĂ State hŶŝǀĞƌƐŝƚǇFullerton EXHIBIT A to Resolution 24-447 Maggie Jaltorossian Senior Vice President, Workers’ Compensation Division Maggie began her career in workers’ compensation in 1989 at an insurance carrier. She was quickly promoted to a claims adjuster in 1990. In 1993, she began working for a TPA handling the Los Angeles Metropolitan Transit Authority. After attaining her Self Insured Certificate, Workers’ Compensation Claims Administration Certificate, and other claims-specific certifications, she was promoted to a claims supervisor in 1994. Maggie advanced to an assistant manager position shortly thereafter. In 2003, she became a regional claims manager at Cambridge Integrated Services overseeing programs for public and private entities. Maggie began her employment with Intercare Insurance Services in January of 2006 managing the self- insured and insured programs in Glendale, California. Her experience includes public and private entities, self-insured and insured programs, school districts, municipalities, cities, safety personnel, sanitation districts, and transit authorities. As AVP of Claims & Client Services, Maggie consistently achieved some of the best PAR audit results in California and improved customer satisfaction while leading her team to continued success. Maggie also provided oversight and management of client services and account management, client reporting, new client implementation, intake and policy maintenance, special investigations, audits, compliance, and training. In her current role as the Senior Vice President of the Workers’ Compensation Division, Maggie is responsible for managing Intercare’s Workers’ Compensation Operational Division by ensuring that the claims division is compliant with applicable statutes and company standard operating procedures. She works closely with her staff and clients to ensure that all contractual provisions are being followed. Industry Experience x Intercare Holdings Insurance – Senior Vice President of Workers’ Compensation 2017 to Present x Intercare Holdings Insurance – Vice President of Corporate Services 2016 to 2017 x Intercare Holdings Insurance Services – AVP Claims & Client Services 2006 to 2016 x Cambridge Integrated Services – Regional Manager 2003 to 2006 x Cambridge Integrated Services – Assistant Claims Manager 2001 to 2003 x Hertz Claim Management – Claims Supervisor 1994 to 2001 x Hertz Claim Management – Claims Adjuster 1993 to 1994 x Pacific States Casualty – Claims Adjuster 1989 to 1993 Education/Certifications x Workers’ Compensation Claims Professional Designation x Workers’ Compensation Claims Associate Certificate x Self-Insurance Certificate x ARM 54 & ARM 55 x Field Claims Service Phase Training x Utah Adjuster License x Arizona Adjuster License EXHIBIT A to Resolution 24-447 Danielle Buri-Beaton Senior Vice President of Client and Shared Services Danielle began her career with HIH Insurance/Intercare in 1992. Danielle handled workers' compensation claims from 1995 to 1999, was a claims supervisor for the following three years, and in 2001, Danielle was promoted to branch claims manager. In March of 2007, Danielle transitioned to the account management division of Intercare. Her client services and claims management background helped keep our customers satisfied and ensured their needs were met. She was promoted to Director of Client Services in April 2009, and again in October 2016 to VP of Client and Shared Services. Her experience includes public and private entities, self-insured and insured programs, school districts, municipalities, cities, safety personnel, utility districts, restaurant groups, agricultural groups, and auto dealerships, among other industries. She has over 11 years of experience handling and managing public entity claims. As SVP of Client and Shared Services, Danielle functions as the lead implementation manager for new business and provides support to operations in a client service setting. Danielle's professional education includes an IEA certificate, Workers' Compensation Claims Professional (WCCP) designation, Workers’ Compensation Claims Administrator (WCCA) certificate, and Self-Insured Certificate. Danielle previously served on the board of Valley Industrial Claims Association (VICA). She also attends various seminars each year to continue her education and retain her WCCP designation. She is still actively involved in the training and mentoring of Intercare staff. Industry Experience x Intercare Holdings Insurance Services, Inc. – Senior VP Client Services 2020 to Present x Intercare Holdings Insurance Services, Inc. – VP Client and Shared Services 2016 to 2020 x Intercare Holdings Insurance Services, Inc. – Director of Client Services 2009 to 2016 x Intercare Holdings Insurance Services, Inc. – Account Manager 2007 to 2009 x Intercare Holdings Insurance Services, Inc. – Claims Manager 2001 to 2007 x HIH Insurance / Intercare Holdings Insurance Services, Inc. – Claims Supervisor 2000 to 2002 x HIH Insurance / Intercare Holdings Insurance Services, Inc. – Claims Adjuster 1995 to 1999 x HIH Insurance / Intercare Holdings Insurance Services, Inc. – Claims Assistant 1992 to 1995 Education/Certifications x State of California – Self-Insurance Administrator Certificate x Insurance Educational Association – Workers’ Compensation Claims Professional Designation x Insurance Educational Association – Workers’ Compensation Claims Administrator Certificate x Insurance Educational Association – IEA Certificate EXHIBIT A to Resolution 24-447 Kerenza Alvarez Vice President, Managed Care Division Kerenza joined InterMed Cost Containment Services in 2022 as Vice President of Managed Care. In this position, she is responsible for managing all InterMed locations, promoting profitability, ensuring client satisfaction, and maintaining compliance with state regulations and carrier/client guidelines. Her responsibilities include managing special projects that have an impact on overall managed care operations. She is responsible for all medical bill re-pricing, utilization review, case management, preferred provider organizations (PPOs), medical provider networks (MPNs), durable medical equipment (DME) networks, and translation services. Kerenza has been in the industry over 27 years. Over the course of her career, she has been responsible for managing bill review operations up to 90 staff members, training staff, managing projects, account management, key player in product development, implementing policies and procedures, running client implementations and over management of the operations. She has passion for what she does and digs in to understand the process and to see how she can help improve processes and efficiencies. She believes that her relationships with her clients are a partnership. Before joining InterMed, Kerenza was Associate Vice President of Project Management and Product Services at Intercare. As AVP, Kerenza managed the yearly initiatives, tracking all projects, managing scope creep, responsible for seeing projections to completion. She was key player in ensuring 2 large projects went live in a few months of her joining the team. Industry Experience x InterMed Cost Containment Services – Vice President of Managed Care 2022 to Present x Intercare – AVP Project Management & Product Services x Conduent – Service Delivery Director x Comprehensive Cost Solutions – Vice President of Operations 2022 to 2022 2018 to 2022 2013 to 2018 x StrataCare – Operations Manager 2010 to 2013 x Total Healthcare Management – Bill Review Manager 2009 to 2010 x StrataCare – Team Lead & Supervisor 2007 to 2009 x Kaner Medical Group – Medical Billing Supervisor 2005 to 2006 x StrataCare – Onsite Analyst 2004 to 2005 x Fair Isaac – Technical Trainer, Team Lead & Bill Review Specialist 2001 to 2004 x MedAmerica Billing Services – Auditor/ Trainer, Supervisor & Billing Specialist 1997 to 2001 x Intracorp – Medical Claims Reviewer 1995 to 1997 Education/Certifications x Katella High School – High School Diploma x Bill Review Designation Certificate EXHIBIT A to Resolution 24-447 LuAnn Koppel Associate Vice President of Claims Operations LuAnn joined the Intercare team in December of 2016 as a claims supervisor and was promoted to claims manager in 2019 and Associate Vice President (AVP) of Claims Operations in 2022. She began her career in workers’ compensation in 1994 as a claims technician at the State Compensation Insurance Fund, where she quickly advanced to a claims adjuster. She has over 24 years of experience successfully handling workers’ compensation claims as a claims adjuster, supervisor, and claims manager. LuAnn has experience handling insured and self-insured accounts, including municipalities, school districts and associations, healthcare facilities, high deductible clients, transit authorities, and excess carriers. She obtained her Self-Insured Certificate in August 2015. As AVP of Claims Operations, LuAnn is responsible for the overall coordination and work product of the department and claims units. She works with the supervisors and claims managers of each unit to ensure compliance with client service instructions, Intercare Best Practices, and audit requirements. She monitors the work performance of each unit in accordance with the California Labor Code rules and regulations. She also conducts and manages internal audits, attends file reviews, and provides ongoing direction, mentoring, and assistance to the claims team. Industry Experience x Intercare Holdings Insurance Services, Inc. – AVP of Claims Operations 2022 to Present x Intercare Holdings Insurance Services, Inc. – Claims Manager 2019 to 2022 x Intercare Holdings Insurance Services, Inc. – Assistant Claims Manager 2018 to 2019 x Intercare Holdings Insurance Services, Inc. – Claims Supervisor 2016 to 2018 x Alpha Fund – Sr Claims Examiner/ Lead 2016 to 2016 x York Risk Services Group, Inc. – Sr. Claims Examiner 2012 to 2016 x State Compensation Insurance Fund (SCIF) – Sr. Claims Examiner & Assistant Claims Manager 1994 to 2016 Education/Certifications x California Office of Self Insurance – Self-Insurance Administrator Certificate, 2015 EXHIBIT A to Resolution 24-447 Aimee Harris Claims Manager Aimee joined the Intercare team in 2013 as a senior claims adjuster however, Aimee began her career in Workers’ Compensation in 1995 working as a file clerk, claims assistant, claims assistant supervisor, claims adjuster, claims supervisor and ultimately a Claims Manager. Aimee has experience handling self-insured accounts including municipalities, school districts, and construction companies. She also has experience handling insured accounts to include multiple/varied small employers. Aimee obtained her Self-Insured Certificate in November of 2000. Aimee currently manages 6 programs and 5 claims teams. Her greatest asset is she excels in customer service and professionally and efficiently applies her claims handling experience of public and private sector to her claims teams. She is organized, continually sees the bigger picture, and has the ability to effectively manage multiple priorities. Industry Experience x Intercare Holdings Insurance Services – Claims Manager 2013 to Present x Gallagher Basset Services, Inc. – Senior Claims Adjuster 2012 to 2013 x York Insurance Services Group – Senior Claims Adjuster 2004 to 2012 x Keenan & Associates – Senior Claims Adjuster 2003 to 2004 x Claims Management, Inc. – Claims Adjuster 2000 to 2003 Education/Certifications x California Self-Insured Certificate – November 2000 x Advanced Issues of Workers’ Compensation – February 1999 x Permanent Disability Rating – November 1997 x Medical Coordination of Workers’ Compensation Claims – August 1997 x Basic Workers’ Compensation Claims – April 1996 EXHIBIT A to Resolution 24-447 Heather Spivey Claims Supervisor Heather joined Intercare in 2021. Her role as Workers’ Compensation Claim Supervisor includes claim management responsibility for three claims professionals managing a fire district and one municipality. Heather leverages her many years of claim experience to provide leadership and technical oversight to ensure that claims handling meets both Intercare’s performance goals as well as the client’s expectations. Heather began her career in Workers’ Compensation in December 2012. She has provided excellent claims services at three different third-party administrators with the third one being Intercare. Heather brings many years of claims experience managing severe/complex claims, mentoring and providing effective oversight. Her experience includes servicing risk management clients covering many different industries including public entities, state agencies, and private industry. Heather has achieved her Workers’ Compensation Self Insurance Certificate in 2014 and is very knowledgeable within Workers’ Compensation claims and understands the importance of technical claim handling as well as what it means to be truly committed to delivering exceptional service and achieving excellent outcomes for every client. Industry Experience x Intercare Holdings Insurance Services – Claims Supervisor 2021 to Present x Sedgwick – Senior Claims Examiner 2019 to 2020 x York Risk Services Group – Claims Examiner 2016 to 2019 x York Risk Services Group – Future Medical/Medical Only Examiner 2012 to 2016 x York Risk Services Group – Claims Assistant 2008 to 2012 x York Risk Services Group – File Clerk 2007 to 2008 Education/Certifications x Department of Industrial Relations – Self-Insurance Certificate EXHIBIT A to Resolution 24-447 Connie Hampson Account Manager Connie joined the Intercare Holdings Insurance Services team in November 1999. She was originally hired as a senior claims adjuster and was quickly promoted to claims supervisor in April 2000. Connie became the assistant claims manager of Intercare’s Rocklin office in May 2014 and account manager in November 2016. She has over 30 years of progressive workers’ compensation experience and excellent customer service skills. She has technical expertise in litigation management, medical management, settlement negotiation and reserving practices, education code, presumptive injury claims, catastrophic injuries, integrated disability management claims, a high volume of litigated claims, as well as working with client- specific handling instructions and performance guarantee agreements. Throughout her career, she has worked with large school districts, large transit districts, municipalities, cities, counties, safety personnel, hospitals, and public and private entities. As an account manager, Connie is currently responsible for all aspects of customer service and is the central point of contact for client questions and data requests. In addition to general customer service support, she is responsible for coordinating the transition and implementation process, providing client support, and generating statistical, stewardship, and client board reports. Connie possesses superb customer service skills and strong technical skills. She is a highly organized, detail oriented, and solution- focused individual. Connie holds her California Self-Insurance Administrator’s Certificate and stays up-to- date with recent case law, changes to labor codes and regulations, and State compliance requirements. Connie’s client services and claims management background helps keep our customers satisfied and ensures their needs are met. Industry Experience x Intercare Holdings Insurance Services, Inc. – Account Manager 2016 to Present x Intercare Holdings Insurance Services, Inc. – Assistant Claim Manager 2014 to 2016 x Intercare Holdings Insurance Services, Inc. – Claims Supervisor 2000 to 2014 x Intercare Holdings Insurance Services, Inc. – Senior Claims Adjuster 1999 to 2000 x Fremont Comp – Senior Claims Adjuster 1997 to 1999 x Industrial Indemnity – Customer Services Specialist/Claims Assistant 1990 to 1997 x Unigard Insurance – Commercial Property Rating 1988 to 1990 Education/Certifications x California Office of Self-Insurance Plans – California Self-Insured Certificate, 2003 x Insurance Educational Association – Educational Training EXHIBIT A to Resolution 24-447 EXHIBIT 2 Staffing Model EXHIBIT A to Resolution 24-447 City of South San Francisco Exhibit 2 – Staffing Model Staffing Model # of Staff Claims Manager 1 Account Manager 1 Claims Supervisor 1 Claims Examiner 2 Claims Assistant 1 EXHIBIT A to Resolution 24-447 EXHIBIT 9 )HH Proposal EXHIBIT A to Resolution 24-447 City of South San Francisco Fee Proposal 1 Section Ten: Fee Proposal Please provide a detailed explanation of costs to be charged to the City for all mandatory services, as listed above. The explanation should indicate administrative and management support and staff allocations showing the specific salary allocation. The proposers cost factor and profit factor should be shown in arriving at the required service fee. Proposers that offer additional preferred services or additional suggested services, in addition to the mandatory services, all as listed above, should separately detail any additional cost. Proposers pricing may be for bundled or unbundled services. If the City deems it to be in its best interest it will contract for services separately or bundled or any combination. Proposals that agree to provide (2) two additional (1) one-year extension options at the City's sole option should likewise provide a detailed explanation of the cost to be charged if either or both said option years are exercised. Claims Administration Fees Option 1 Option 2 Initial Term: 7/1/2024-6/30/2025 $220,689.08 $259,786.47 7/1/2025-6/30/2026 $227,309.75 $267,580.06 7/1/2026-6/30/2027 $234,129.04 $275,607.46 Extension Options: 7/1/2027-6/30/2028 $241,152.91 $283,875.69 7/1/2028-6/30/2029 $248,387.50 $292,391.96 Staffing Model: Claims Supervisor 1 Designated 1 Designated Senior Claims Adjuster 1 Designated 1 Dedicated Future Medical/MO Adjuster 1 Designated Claims Assistant 1 Designated 1 Designated The above fees exclude the following: Data Conversion (Migration of historical data including closed files). $ 10,000.00 one-time fee Transition and Implementation Fees waived Intake Services - Online Reporting – unlimited users No charge Intake using phone, fax, email, mail $25.00 per report MMSEA Section 111 Mandatory Insurance reporting: Included in claim fees RMIS/System Full Access – Up to 2 users No charge. RMIS Access (View Only) - unlimited No charge Account Management $5,000 per year Subrogation 15% of gross recovery EXHIBIT A to Resolution 24-447 City of South San Francisco Fee Proposal 2 Assumptions: 1. Staffing is based on a maximum caseload of 150 IN claims, 1 FM is equivalent to 1/2 of an IN claim and 1 MO is equivalent to 1/3 of an IN claim. 2. The development of the staffing model is based an average annual new claim volume not to exceed 100 new claims per year and the assumption of no more than 145 pending claims in an open status at the time of transfer to Intercare. 3. Option 1 reflect a model where the 2 designated adjusters assigned to the program are not exclusive to the City of South San Francisco’s program. One adjuster will handle the indemnity claim types and the other will handle the Future Medical and Medical Only claims. 4. The staffing model under Option 2, contemplate a 1 Adjuster who is exclusively dedicated to the City of South San Francisco’s Program. This model provides the City a one point of contact on all claims and the adjuster will manage all claim types including Indemnity, Future Medical and medical Only claims. 5. Fees were calculated using the proposed staffing model for each option plus benefits (such as health and workers’ compensation insurance, payroll taxes, paid time off, education etc.) OPTION 1 – EXPENSE MODEL Job Title Estimated Annual Salary Benefits, Health Ins, Payroll Tax etc. FTE Allocation Total Compensation Supervisor $110,000.00 $27,500.00 20% $27,500.00 Adjuster III $101,000.00 $25,250.00 50% $63,125.00 Adjuster II $83,000.00 $20,750.00 40% $41,500.00 Claims Assistant $47,000.00 $11,750.00 20% $11,750.00 Total Direct Compensation $143,875.00 Other Indirect Expenses1 $37,165.61 Administrative Operational Allocation and Profit2 $39,648.07 Total Cost - Year 1 $220,688.68 OPTION 2 – EXPENSE MODEL Job Title Estimated Annual Salary Benefits, Health Ins, Payroll Tax etc. FTE Allocation Total Compensation Supervisor $110,000.00 $27,500.00 20% $27,500.00 Adjuster III $101,000.00 $25,250.00 100% $126,250.00 Claims Assistant $47,000.00 $11,750.00 20% $11,750.00 Total Direct Compensation $165,500.00 Other Indirect Expenses1 $41,468.06 Administrative Operational Allocation and Profit2 $52,818.41 Total Cost – Year 1 $259,786.47 1Indirect Expenses: Human Resources, Accounting and Finance, IT, Client Services, Administrative operational support, Mailroom, Management/Executive etc. EXHIBIT A to Resolution 24-447 City of South San Francisco Fee Proposal 3 2Administrative Allocation: Systems, Equipment, Software, Telecommunications, Postage and Shipping, Office Supplies, Training and Education, Quality Control and Compliance plus margin which may vary based upon variance arising during implementation. 6. The flat fee uses a 3% annual escalation rate for subsequent years and includes: claims functions and benefit delivery in accordance with CA Code of Regulations but excludes any managed care services and un-allocated loss expenses. Other additional administrative services included in the Claims Administration Fee are: Intake or on-line claims reporting, real time access to data for up to two users including ability to input notes and diaries, read only access for unlimited number of users, unlimited claims reporting, the preparation of state mandated reports such as 1099’s, SIP Annual Report, MMSEA SCHIP Section 111 Reporting, OSHA Logs, Annual Report of Inventory, WCIS and FROI/SROI reporting, escrow account management and reconciliation, stewardship reporting, customer service survey, and training. Access to an Injured Worker App; Client Dashboard; Web Portal for reporting new claims. Custom service instruction and pre-authorization and UR certification at the nonclinical level. Quarterly Claim Review and Interact roundtable program for specific complex cases Other Ancillary Services Billed to the Claim File as ALAE: SIU Services: · FD1/FD2 Filing $150.00 per filing · Fraud Package Submission and Walk Thru $500.00 per case · Optional services Background Investigation $375.00 per case Social Media Investigation $450.00 per case ISO Index Fee Pass-thru cost per index Managed Care Services: Bill Review Services Per Bill Fee $10.00 per bill PPO Access Fee 23% of PPO Savings Secondary Review Specialty Bill Review (out of network bills, bills not subject to OMFS and complex bills over $5,000). 20% of savings cap at $5,000 per bill In/Out Patient Hospitalization and ASC Bills $450.00 per bill Utilization Review Level 1 – Pre-Clinical Certificationwaived Level 2 – UR Nurse$145.00 per review Level 3 – Medical Director$275.00 per review Specialty Peer Review $325.00 per hour Case Management Services: EXHIBIT A to Resolution 24-447 City of South San Francisco Fee Proposal 4 Telephonic Case Management $110.00 per hour Triage Services $110.00 per hour Telehealth Services Subject to OMFS Field Case Management $125.00 per hour x The BR fee is not applicable to in-network prescription bills through the Optum Network. Only out of network prescription bills will be charged the BR fee. This represents a 15-18% BR cost savings for the district. There is no charge for duplicate bills, EDI/WCIS data transmission. In addition, Intercare does not have a separate charge for facility bills. x The Secondary Bill Review is another opportunity to increase your savings. This is usually for bills that are outside of the PPO Network or bills that are not subject to the Official Medical Fee Schedule and should be further negotiated prospectively or retrospectively. x Hourly rates are billed in 15-minute increments x The proposed cost for claims administration is contingent on an integrated program model using Intercare's managed care division, InterMed as the provider of managed care services. TPA and MC services are contingent on the other and cannot be unbundled without a pricing adjustment. Should the Client unbundle any of the MC services, the Client shall bear the cost of integration. x Medicare Secondary Payer Compliance - MSA Allocations – Intercare has contracted with third party OPTUM for Medicare Set Aside allocations. Intercare may exclusively utilize the services of Optum for MSA allocations unless otherwise requested in writing by Client. x In the event that the annual average All Items Consumer Price Index for All Urban Consumers (CPI-U) as published by the Bureau of Labor and Statistics is subject to an inflation rate of greater than 10% above the rate which is published as of the effective date of this agreement Intercare shall have the ability to make reasonable adjustments to the fees which are detailed in the Fee Schedule of the agreement so as to equitably share the effect of inflation between Administrator and Client. Notice of fee adjustments will be in writing and must be delivered at least (30) days in advance of adjustment. EXHIBIT A to Resolution 24-447