The URL can be used to link to this page

Home My WebLink AboutReso 169-2023 (23-964) &,7<2)6287+6$1)5$1&,6&2 (1*,1((5,1*',9,6,21 )2502)$*5((0(17)2538%/,&,03529(0(176 7$%/(2)&217(176 3DJH1R 6FRSHRI:RUN$ 7KH&RQWUDFW'RFXPHQWV$ (TXLSPHQW3HUIRUPDQFHRI:RUN$ &RQWUDFW3ULFH$ 5LJKWVRI&LW\WR,QFUHDVH:RUNLQJ'D\V$ 2SWLRQRI&LW\WR7HUPLQDWH$JUHHPHQWLQ(YHQW RI)DLOXUHWR&RPSOHWH:RUN $ 7HUPLQDWLRQRI&RQWUDFWIRU&RQYHQLHQFH$ 3HUIRUPDQFHE\6XUHWLHV$ +ROG+DUPOHVV$JUHHPHQWDQG&RQWUDFWRU V,QVXUDQFH $ ,QVXUDQFH$ 3URRIRI&DUULDJHRI,QVXUDQFH$ 3URYLVLRQV&XPXODWLYH$ 1RWLFHV$ ,QWHUSUHWDWLRQ$ $WWDFKPHQW$±(VFURZ$JUHHPHQWIRU6HFXULW\'HSRVLWVLQ/LHXRI5HWHQWLRQ 6HSWHPEHU 3DJH$RI )2502)$*5((0(17)2538%/,&,03529(0(176 7+,6$*5((0(17PDGHDQGHQWHUHGLQWRWKLVBBBBGD\RIBBBBBBBBBBBEHWZHHQWKH&,7< 2) 6287+ 6$1 )5$1&,6&2 D PXQLFLSDO FRUSRUDWLRQ DQG SROLWLFDO VXEGLYLVLRQ RI WKH 6WDWH RI &DOLIRUQLDKHUHLQDIWHUFDOOHG³&,7<´DQG&RQWUDFWRU!,QFKHUHLQDIWHUFDOOHG³&2175$&725´ :,71(66(7+ :+(5($6&LW\KDVWDNHQDSSURSULDWHSURFHHGLQJVWRDXWKRUL]HFRQVWUXFWLRQRIWKHSXEOLFZRUN DQGLPSURYHPHQWVKHUHLQSURYLGHGDQGH[HFXWLRQRIWKLVFRQWUDFW :+(5($6DQRWLFHZDVGXO\SXEOLVKHGIRUELGVIRUWKHFRQWUDFWIRUWKHLPSURYHPHQWVKHUHLQDIWHU GHVFULEHG :+(5($6RQBBBBBBBBBBBBQRWLFHGXO\JLYHQWKH&LW\&RXQFLO³&RXQFLO´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±6XEPLWWHG3URSRVDODVDFFHSWHG &7KLV $JUHHPHQW LQFOXGLQJ &RQWUDFWRU¶V 3D\PHQW %RQG )DLWKIXO 3HUIRUPDQFH %RQGDQG*XDUDQW\%RQG '3DUW,,±*HQHUDO&RQGLWLRQV 7KHWHUP&RQWUDFWRUDVXVHGKHUHLQLVHPSOR\HGZLWKRXWGLVWLQFWLRQDVWRHLWKHUQXPEHURUJHQGHUDQGVKDOO LQFOXGHZKHQHYHUWKHFRQWH[WVKDOOSHUPLWDOODJHQWVUHSUHVHQWDWLYHVHPSOR\HHVVHUYDQWVVXEFRQWUDFWRUVDQG EXVLQHVVRUVRFLDOLQYLWHHV 3DJH$RI (3DUW,,,±6SHFLDO3URYLVLRQV6SHFLDO&RQGLWLRQVDQG7HFKQLFDO6SHFLILFDWLRQV LQFOXGLQJ6WDWH6WDQGDUG6SHFLILFDWLRQVGDWHGVHFWLRQVDVUHYLVHGLQ5HYLVHG6WDQGDUG 6SHFLILFDWLRQV566GDWHG2FWREHU )3DUW,9±3URMHFW3ODQVDSSURYHG *$GPLQLVWUDWLYHVXEVHFWLRQVRIWKH6WDWH6WDQGDUG6SHFLILFDWLRQVGDWHGDV VSHFLILFDOO\UHIHUHQFHGLQFRQWUDFW3DUWV,,9DQGDVUHYLVHGLQ566GDWHG2FWREHU $OOULJKWVDQGREOLJDWLRQVRI&LW\DQG&RQWUDFWRUDUHIXOO\VHWIRUWKDQGGHVFULEHGLQWKHFRQWUDFW GRFXPHQWV $OORIWKHDERYHQDPHGGRFXPHQWVDUHLQWHQGHGWRFRRSHUDWHVRWKDWDQ\ZRUNFDOOHGIRULQRQH DQGQRWPHQWLRQHGLQWKHRWKHURUYLFHYHUVDLVWREHH[HFXWHGWKHVDPHDVLIPHQWLRQHGLQDOOVDLG GRFXPHQWV7KHGRFXPHQWVFRPSULVLQJWKHFRPSOHWHFRQWUDFWZLOOKHUHLQDIWHUEHUHIHUUHGWRDV³WKH &RQWUDFW'RFXPHQWV´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¶VGHVLJQDWHGDVVLVWDQW &RQWUDFW3ULFH&LW\VKDOOSD\DQG&RQWUDFWRUVKDOODFFHSWLQIXOOSD\PHQWIRUWKH:RUN DJUHHGWREHGRQHWKHVXPRIBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB6DLGSULFHLVGHWHUPLQHGE\ WKHOXPSVXPSULFHFRQWDLQHGLQ&RQWUDFWRU VELGSURSRVDO³%LG´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¶VVXUHWLHVZKRZLOOEHOLDEOHWKHUHIRUH,QWKHHYHQWRIVXFK WHUPLQDWLRQDOOPRQH\GXHWKH&RQWUDFWRURUUHWDLQHGXQGHUWKHWHUPVRIWKLVFRQWUDFWVKDOOEHIRUIHLWHGWR WKH&LW\EXWVXFKIRUIHLWXUHZLOOQRWUHOHDVHWKH&RQWUDFWRURUWKH&RQWUDFWRU¶VVXUHWLHVIURPOLDELOLW\RU IDLOXUHWRIXOILOOWKHFRQWUDFW7KH&RQWUDFWRUDQGWKH&RQWUDFWRU¶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³3URJUHVV3D\PHQWV´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¶VUHVSRQVLELOLW\IRUGDPDJHWRPDWHULDOVIRUZKLFKSDUWLDOSD\PHQWKDVEHHQ PDGH DV SURYLGHG LQ 6HFWLRQ ,; ³3URJUHVV 3D\PHQWV´ RI WKH *HQHUDO &RQGLWLRQV DQG IRU PDWHULDOVIXUQLVKHGE\WKH&LW\IRUXVHLQWKH:RUNDQGXQXVHGVKDOOWHUPLQDWHZKHQWKH(QJLQHHU FHUWLILHVWKDWVXFKPDWHULDOVKDYHEHHQVWRUHGLQWKHPDQQHUDQGDWWKHORFDWLRQVWKH(QJLQHHUKDV GLUHFWHG 7KH&RQWUDFWRU¶VUHVSRQVLELOLW\IRUGDPDJHWRPDWHULDOVSXUFKDVHGE\WKH&LW\VXEVHTXHQW WRWKHLVVXDQFHRIWKHQRWLFHWKDWWKHFRQWUDFWLVWREHWHUPLQDWHGVKDOOWHUPLQDWHZKHQWLWOHDQG GHOLYHU\RIVXFKPDWHULDOVKDVEHHQWDNHQE\WKH&LW\ :KHQWKH(QJLQHHUGHWHUPLQHVWKDWWKH&RQWUDFWRUKDVFRPSOHWHGWKH:RUNXQGHUWKH FRQWUDFWGLUHFWHGWREHFRPSOHWHGSULRUWRWHUPLQDWLRQDQGVXFKRWKHUZRUNDVPD\KDYHEHHQ RUGHUHGWRVHFXUHWKHSURMHFWIRUWHUPLQDWLRQWKH&RQWUDFWRUZLOOUHFRPPHQGWKDWWKH(QJLQHHU IRUPDOO\ DFFHSW WKH FRQWUDFW WR WKH H[WHQW SHUIRUPHG DQG LPPHGLDWHO\ XSRQ DQG DIWHU VXFK DFFHSWDQFHE\WKH(QJLQHHUWKH&RQWUDFWRUZLOOQRWEHUHTXLUHGWRSHUIRUPDQ\IXUWKHU:RUN WKHUHRQDQGVKDOOEHUHOLHYHGRIWKH&RQWUDFWRU VFRQWUDFWXDOUHVSRQVLELOLWLHVIRULQMXU\WRSHUVRQVRU SURSHUW\ZKLFKRFFXUVDIWHUWKHIRUPDODFFHSWDQFHRIWKHSURMHFWE\WKH(QJLQHHU &7HUPLQDWLRQRIWKHFRQWUDFWVKDOOQRWUHOLHYHWKHVXUHW\RILWVREOLJDWLRQIRUDQ\MXVW FODLPVDULVLQJRXWRIWKHZRUNSHUIRUPHG '7KHWRWDOFRPSHQVDWLRQWREHSDLGWRWKH&RQWUDFWRUVKDOOEHGHWHUPLQHGE\WKH (QJLQHHURQWKHEDVLVRIWKHIROORZLQJ 3DJH$RI 7KHUHDVRQDEOHFRVWWRWKH&RQWUDFWRUZLWKRXWSURILWIRUDOOZRUNSHUIRUPHGXQGHUWKH FRQWUDFW LQFOXGLQJ PRELOL]DWLRQ GHPRELOL]DWLRQ DQG ZRUN GRQHWR VHFXUH WKH SURMHFW IRU WHUPLQDWLRQ,QGHWHUPLQLQJWKHUHDVRQDEOHFRVWGHGXFWLRQVZLOOEHPDGHIRUWKHFRVWRIPDWHULDOV WREHUHWDLQHGE\WKH&RQWUDFWRUDPRXQWVUHDOL]HGE\WKHVDOHRIPDWHULDOVDQGIRURWKHUDSSURSULDWH FUHGLWVDJDLQVWWKHFRVWRIWKHZRUN:KHQLQWKHRSLQLRQRIWKH(QJLQHHUWKHFRVWRIDFRQWUDFW LWHPRIZRUNLVH[FHVVLYHO\KLJKGXHWRFRVWVLQFXUUHGWRUHPHG\RUUHSODFHGHIHFWLYHRUUHMHFWHG ZRUNWKHUHDVRQDEOHFRVWWREHDOORZHGZLOOEHWKHHVWLPDWHGUHDVRQDEOHFRVWRISHUIRUPLQJVXFK ZRUNLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIWKHSODQVDQGVSHFLILFDWLRQVDQGWKHH[FHVVLYHDFWXDO FRVWVKDOOEHGLVDOORZHG $UHDVRQDEOHDOORZDQFHIRUSURILWRQWKHFRVWRIWKHZRUNSHUIRUPHGDVGHWHUPLQHGXQGHU 6XEVHFWLRQSURYLGHGWKH&RQWUDFWRUHVWDEOLVKHVWRWKHVDWLVIDFWLRQRIWKH(QJLQHHUWKDWLWLV UHDVRQDEO\SUREDEOHWKDWWKH&RQWUDFWRUZRXOGKDYHPDGHDSURILWKDGWKHFRQWUDFWEHHQFRPSOHWHG DQGSURYLGHGIXUWKHUWKDWWKHSURILWDOORZHGVKDOOLQQRHYHQWH[FHHGIRXUSHUFHQWRIVDLGFRVW 7KHUHDVRQDEOHFRVWWRWKH&RQWUDFWRURIKDQGOLQJPDWHULDOUHWXUQHGWRWKHYHQGRUGHOLYHUHG WRWKH&LW\RURWKHUZLVHGLVSRVHGRIDVGLUHFWHGE\WKH(QJLQHHU $ UHDVRQDEOH DOORZDQFH IRU WKH &RQWUDFWRU¶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³)LQDO3D\PHQW´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³6KRXOG&RQWUDFWRUFRQWUDFWLQWKH&RQWUDFWRU¶V LQGLYLGXDOFDSDFLW\WKHGHDWKRIWKH&RQWUDFWRUVKDOOQRWUHOLHYHWKHVXUHW\RILWVREOLJDWLRQV´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³,QVXUDQFH´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¶VLQVXUDQFHSROLF\ 3DJH$RI LQFOXGHVDVHOILQVXUHGUHWHQWLRQWKDWPXVWEHSDLGE\DQDPHGLQVXUHGDVDSUHFRQGLWLRQRIWKHLQVXUHU¶V OLDELOLW\RUZKLFKKDVWKHHIIHFWRISURYLGLQJWKDWSD\PHQWVRIWKHVHOILQVXUHGUHWHQWLRQE\RWKHUVLQFOXGLQJ DGGLWLRQDOLQVXUHGVRULQVXUHUVGRQRWVHUYHWRVDWLVI\WKHVHOILQVXUHGUHWHQWLRQVXFKSURYLVLRQVPXVWEH PRGLILHGE\VSHFLDOHQGRUVHPHQWVRDVWRQRWDSSO\WRWKHDGGLWLRQDOLQVXUHGFRYHUDJHUHTXLUHGE\WKLV DJUHHPHQWVRDVWRQRWSUHYHQWDQ\RIWKHSDUWLHVWRWKLVDJUHHPHQWIURPVDWLVI\LQJRUSD\LQJWKHVHOILQVXUHG UHWHQWLRQUHTXLUHGWREHSDLGDVDSUHFRQGLWLRQWRWKHLQVXUHU¶VOLDELOLW\$GGLWLRQDOO\WKHFHUWLILFDWHVRI LQVXUDQFHPXVWQRWHZKHWKHUWKHSROLF\GRHVRUGRHVQRWLQFOXGHDQ\VHOILQVXUHGUHWHQWLRQDQGDOVRPXVW GLVFORVHWKHGHGXFWLEOH 3URYLVLRQV&XPXODWLYH7KHSURYLVLRQVRIWKLV$JUHHPHQWDUHFXPXODWLYHDQGLQDGGLWLRQ WRDQGQRWLQOLPLWDWLRQRIDQ\RWKHUULJKWVRUUHPHGLHVDYDLODEOHWR&LW\ 1RWLFHV$OOQRWLFHVVKDOOEHLQZULWLQJDQGGHOLYHUHGLQSHUVRQRUWUDQVPLWWHGE\FHUWLILHG PDLOSRVWDJHSUHSDLG 1RWLFHVUHTXLUHGWREHJLYHQWR&LW\VKDOOEHDGGUHVVHGDVIROORZV &LW\&OHUN &LW\+DOO*UDQG$YHQXH 6RXWK6DQ)UDQFLVFR&DOLIRUQLD 1RWLFHVUHTXLUHGWREHJLYHQWR&RQWUDFWRUVKDOOEHDGGUHVVHGDVIROORZV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWLFHVUHTXLUHGWREHJLYHQVXUHWLHVRI&RQWUDFWRUVKDOOEHDGGUHVVHGDVIROORZV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWLFHVUHTXLUHGWREHJLYHQWRWKH(VFURZ$JHQWRI&RQWUDFWRULIDQ\VKDOOEHDGGUHVVHGDV IROORZV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB ,QWHUSUHWDWLRQ$VXVHGKHUHLQDQ\JHQGHULQFOXGHVHDFKRWKHUJHQGHUWKHVLQJXODULQFOXGHV WKHSOXUDODQGYLFHYHUVD ,1:,71(66:+(5(2)WZRLGHQWLFDOFRXQWHUSDUWVRIWKLV$JUHHPHQWFRQVLVWLQJRIQLQH SDJHVEHLQJSDJHV$WKURXJK$HDFKRIZKLFKFRXQWHUSDUWVVKDOOIRUDOOSXUSRVHVEHGHHPHGDQ RULJLQDORIVDLG$JUHHPHQWKDYHEHHQGXO\H[HFXWHGE\WKHSDUWLHVKHUHLQDERYHQDPHGRQWKHGD\DQG\HDU ILUVWKHUHLQDERYHZULWWHQ 3DJH$RI $77(67&,7<&LW\RI6RXWK6DQ)UDQFLVFR DPXQLFLSDOFRUSRUDWLRQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB %\BBBBBBBBBBBBBBBBBBBBBBBBBBBBB &LW\&OHUN 0LNH)XWUHOO&LW\0DQDJHU &2175$&725BBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $77(67 %\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB ,I&RQWUDFWRULVDQLQGLYLGXDOVRVWDWH BBBBBBBBBBBBBBBBBBBBBBBBBBBBB ,I&RQWUDFWRULVD&RUSRUDWLRQDFRUSRUDWHVHDO RUVLJQDWXUHVRIWKH3UHVLGHQWRU9LFH3UHVLGHQW DQGWKH6HFUHWDU\7UHDVXUHUDUHUHTXLUHG $77$&+0(17$ (6&52:$*5((0(17)25 6(&85,7<'(326,76,1/,(82)5(7(17,21 7+,6(6&52:$*5((0(17LVPDGHDQGHQWHUHGLQWRE\DQGEHWZHHQWKH&LW\RI6RXWK 6DQ)UDQFLVFRZKRVHDGGUHVVLV*UDQG$YH32%R[6RXWK6DQ)UDQFLVFR&$ KHUHLQDIWHUUHIHUUHGWRDV&LW\DQGBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBZKRVHDGGUHVV LV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB KHUHLQDIWHU FDOOHG ³&RQWUDFWRU´DQGBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBZKRVH DGGUHVVLVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBKHUHLQDIWHUFDOOHG ³(VFURZ$JHQW´ )RUWKHFRQVLGHUDWLRQKHUHLQDIWHUVHWIRUWKWKH2ZQHU&RQWUDFWRUDQG(VFURZ$JHQWDJUHHDVIROORZV 3XUVXDQWWR6HFWLRQRIWKH3XEOLF&RQWUDFW&RGHRIWKH6WDWHRI&DOLIRUQLD &RQWUDFWRUKDVWKHRSWLRQWRGHSRVLWVHFXULWLHVZLWK(VFURZ$JHQWDVDVXEVWLWXWHIRUUHWHQWLRQHDUQLQJV UHTXLUHGWREHZLWKKHOGE\2ZQHUSXUVXDQWWRWKH&RQVWUXFWLRQ&RQWUDFWHQWHUHGLQWREHWZHHQWKH2ZQHU DQG&RQWUDFWRUIRUBBBBBBBBBBBBBBBBBBLQWKHDPRXQWRIBBBBBBBBBBBBBBBGROODUVBBBBBGDWHG BBBBBBBBBBB KHUHLQDIWHU UHIHUUHG WR DV WKH ³&RQWUDFW´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¶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¶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