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jV DSSRLQWPHQW H[SDQGHG DQG WKHUHIRUH SDLG E\ WKH IHGHUDO JRYHUQPHQWIRUWKHVWDWHFRXUWUHSUHVHQWDWLRQ$IWHUUHYLHZ 3$8/ *5(*25< +286( ; WKHDSSOLFDEOHFDVHODZIURPRXUVLVWHUFLUFXLWVZHILQGWKDW 3HWLWLRQHU$SSHOODQW  6HFWLRQ T GRHVQRWDXWKRUL]HWKHH[SDQGHGDSSRLQWPHQW  $FFRUGLQJO\WKHPRWLRQLVGHQLHG  1R Y  $V WKH IDFWV VXUURXQGLQJ +RXVHjV FRQYLFWLRQ ZHUH IXOO\ ! GLVFXVVHGLQRXUSULRURSLQLRQ+RXVHY%HOO)G  5,&.< %(//:DUGHQ    WK&LU ZHZLOOQRWUHLWHUDWHWKHPKHUH7KH 5HVSRQGHQW$SSHOOHH  VROHTXHVWLRQEHIRUHXVFRQFHUQVZKHWKHU6HFWLRQ T ZLOO 1 DOORZ)HGHUDO'HIHQGHUWREHFRPSHQVDWHGIRUDQ\VWDWHZRUN 6HFWLRQ T  % DXWKRUL]HVWKHDSSRLQWPHQWRIFRXQVHO IRUDQ\LQGLJHQWGHIHQGDQWLQDQ\SRVWFRQYLFWLRQSURFHHGLQJV )LOHG sXQH XQGHU86&† VHHNLQJWRYDFDWHRUVHWDVLGHDVWDWH GHDWKVHQWHQFH DVZHOODVIRUIHGHUDOGHDWKVHQWHQFHVXQGHU %HIRUH 0$57,1&KLHI&LUFXLWsXGJH 0(55,77 86&†7KHVWDWXWHDOVRSURYLGHVWKDWDGHIHQGDQW %2**61255,66,/(5%$7&+(/'(5 LV HQWLWOHG WR mWKH IXUQLVKLQJV RI VXFK RWKHU VHUYLFHV LQ '$8*+75(<0225(&2/(&/$<DQG*,/0$1 DFFRUGDQFHZLWKSDUDJUDSKV        DQG l &LUFXLWsXGJHV 86& †  T  %   6HFWLRQ  T   SURYLGHV WKDW DSSRLQWHGDWWRUQH\V BBBBBBBBBBBBBBBBB VKDOO UHSUHVHQW WKH GHIHQGDQW WKURXJKRXW HYHU\ 25'(5 VXEVHTXHQW VWDJH RI DYDLODEOH MXGLFLDO SURFHHGLQJV BBBBBBBBBBBBBBBBB LQFOXGLQJ WKH SUHWULDO SURFHHGLQJV WULDO VHQWHQFLQJ PRWLRQVIRUQHZWULDODSSHDOVDSSOLFDWLRQVIRUZULWRI %2<&( ) 0$57,1 s5 &KLHI &LUFXLW s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† T 7KLVFRXUWKDV\HWWRLVVXHD ILQDOHQEDQFGHFLVLRQDVZHDUHDZDLWLQJDUXOLQJIURPWKH

 1R +RXVHY%HOO   +RXVHY%HOO 1R

:HDJUHHZLWKRXUVLVWHUFLUFXLWVWKDW6HFWLRQ T  % FRQWUROOHGE\IHGHUDOFRXUWV IRUODZ\HUVDFWLQJLQVWDWH PXVWEHFRQVWUXHGQDUURZO\DQGDJUHHZLWKWKHLUFRQFOXVLRQ SURFHHGLQJRQEHKDOIRIVWDWHSULVRQHUVVHHPVWRRELJDQG WKDWWKHVWDWXWHGRHVQRWDXWKRUL]HIHGHUDOFRPSHQVDWLRQIRU LQQRYDWLYH WR KDYHEHHQGHDOWZLWKDWWKHWDLOHQGRID UHSUHVHQWDWLRQLQVWDWHSURFHHGLQJV6HH.LQJY0RRUH VHVVLRQDVWKHOHJLVODWLRQZDVEHLQJDSSURYHGDWWKHODVW )G WK&LU &ODUNYs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†7KH SURFHHGLQJV  $V WKH ZHLJKW RI DXWKRULW\ GRHV QRW VXSSRUW ODZDOVRHVWDEOLVKHVWKHSURFHGXUHVIRULPSRVLQJWKH GHDWK +RXVHjVUHTXHVWWRKDYH)HGHUDO'HIHQGHUUHSUHVHQWKLPLQ SHQDOW\ LQ IHGHUDO FDVHV DQG SURYLGHV IRU FRXQVHO IRU WKH VWDWH FRXUW SURFHHGLQJV DW WKH H[SHQVH RI WKH IHGHUDO ILQDQFLDOO\ XQDEOH GHIHQGDQWV  6HFWLRQ  T  LV HQWLWOHG JRYHUQPHQW+RXVHjVPRWLRQWRH[SDQG)HGHUDO'HIHQGHUjV m$SSHDO LQ FDSLWDO FDVHV  FRXQVHO IRU ILQDQFLDOO\ XQDEOH UHSUHVHQWDWLRQ EH\RQG LWV IHGHUDO FRXUW UHVSRQVLELOLWLHV LV GHIHQGDQWVl$VWKHFRXUWQRWHGLQ.LQJWKHVWDWXWHmVHHPV '(1,(' GLUHFWHGWRWKHDSSHDOVRIGHDWKSHQDOW\VHQWHQFHVLQIHGHUDO FDVHVl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oE\SDVVLQJPRQH\WKURXJKWKH IHGHUDOFRXUWVoODZ\HUVWRUHSUHVHQWGHIHQGDQWVLQVWDWH SURFHHGLQJV6HFWLRQ T  % ZDVDGGHGWRWKHELOO YHU\ ODWH LQ WKH VHVVLRQ DQG VHHPLQJO\ ZLWKRXW IORRU GHEDWH  7KH ZKROH EXVLQHVV RI IHGHUDO FRPSHQVDWLRQ