2016-1954 California Infrastructure & Economic Development Bank OS.Xps

                                    .                                                                                         

     .            

      .                 .                            .               . .   .     .    .   .   .             .         .           .  .       .        .

   .           .      .

            .                                     .  . .  .   .                              . .          .  

                                                                                                                                                                                                                            .        .   

 

         .      .      

                 .  

     .       .               .                      

                .     .                      .           .   .                 .    This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, Bonds in any jurisdiction in which or to any person to whom it is unlawful to make such an offer, solicitation or sale. No dealer, salesperson or other person has been authorized by the California Infrastructure and Economic Development Bank (the Infrastructure Bank), Segerstrom Center for the Arts (the Center), Wells Fargo Bank, National Association (Wells Fargo Securities is the trade name for certain capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, National Association) or U.S. Bancorp Investments, Inc. (US Bancorp is the trade name for certain capital markets and investment banking services of U.S. Bancorp and its subsidiaries, including U.S. Bancorp Investments, Inc.) (collectively, Wells Fargo Bank, National Association and U.S. Bancorp Investments, Inc. are the Underwriters) to give any information or to make any representations, other than those contained herein, in connection with the offering of the Bonds and, if given or made, such information or representations must not be relied upon as having been authorized by the foregoing. The information set forth herein under the captions THE INFRASTRUCTURE BANK and NO LITIGATION RELATING TO THE BONDSThe Infrastructure Bank has been obtained from the Infrastructure Bank. All other information set forth herein has been obtained from the Center and other sources (other than the Infrastructure Bank) which are believed to be current and reliable. The accuracy or completeness of any information other than that contained under the captions THE INFRASTRUCTURE BANK and NO LITIGATION RELATING TO THE BONDSThe Infrastructure Bank is not guaranteed by, and is not to be construed as a representation by, the Infrastructure Bank. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, its responsibility to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. Estimates and opinions included in this Official Statement should not be interpreted as statements of fact. Summaries of documents do not purport to be complete statements of their provisions. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Infrastructure Bank or the Center since the date hereof. ______

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITERS MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS, INSTITUTIONAL INVESTORS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS. ______

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS IN THIS OFFICIAL STATEMENT Certain statements included or incorporated by reference in this Official Statement constitute forward- looking statements. Such statements are generally identifiable by the terminology used such as plan, expect, estimate, budget or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Neither the Infrastructure Bank nor the Center plans to issue any updates or revisions to those forward-looking statements if or when expectations change or events, conditions or circumstances on which such statements are based do or do not occur. For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended (Rule 15c2-12), and in effect on the date hereof, this Preliminary Official Statement constitutes an official statement for which the Center is an obligated person and that has been deemed final by the Center as of its date except for the omission of no more than the information permitted by Rule 15c2-12. The Center maintains a website; however, the information presented there is not part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds. Further references to website

addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the readers convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated into, and are not part of, this official statement for purposes of, and as that term is defined in, SEC Rule 15c2-12. TABLE OF CONTENTS

Page

INTRODUCTION ...... 1 GENERAL ...... 1 PURPOSES OF ISSUE ...... 1 THE CENTER ...... 1 THE BONDS ...... 2 SECURITY AND SOURCES OF PAYMENT OF THE BONDS ...... 2 PARITY DEBT ...... 2 CERTAIN INFORMATION RELATED TO THIS OFFICIAL STATEMENT ...... 2 PLAN OF FINANCE ...... 3 THE BONDS ...... 4 GENERAL ...... 4 INTEREST ON THE BONDS ...... 5 NO REDEMPTION OF BONDS ...... 5 REGISTRATION AND TRANSFER OF BONDS ...... 5 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS ...... 6 SECURITY FOR THE BONDS UNDER THE INDENTURE...... 6 SECURITY INTEREST IN GROSS REVENUES OF THE CENTER ...... 7 PARITY DEBT ...... 8 FINANCIAL COVENANTS ...... 8 INVESTMENT CONSIDERATIONS ...... 9 GENERAL ...... 9 CENTER FINANCIAL MATTERS ...... 10 PARITY DEBT ...... 10 COMPETING FACILITIES ...... 11 SEISMIC RISKS ...... 11 RISK FACTORS GENERALLY AFFECTING PERFORMING ARTS VENUES ...... 11 ENFORCEABILITY OF REMEDIES ...... 12 TAX-EXEMPT STATUS ...... 12 THE INFRASTRUCTURE BANK ...... 14 LEGALITY FOR INVESTMENT IN CALIFORNIA ...... 14 TAX MATTERS ...... 14 APPROVAL OF LEGAL PROCEEDINGS ...... 16 NO LITIGATION RELATING TO THE BONDS ...... 16 THE INFRASTRUCTURE BANK ...... 16 THE CENTER ...... 16 UNDERWRITING ...... 16

i CERTAIN RELATIONSHIPS ...... 17 CONTINUING DISCLOSURE ...... 17 RATINGS ...... 17 FINANCIAL STATEMENTS ...... 18 FINANCIAL ADVISORS ...... 18 MISCELLANEUOUS ...... 18

APPENDIX A - SEGERSTROM CENTER FOR THE ARTS ...... A-1 APPENDIX B - AUDITED FINANCIAL STATEMENTS OF THE CENTER ...... B-1 APPENDIX C - BOOK-ENTRY ONLY SYSTEM ...... C-1 APPENDIX D - SUMMARY OF THE INDENTURE AND THE LOAN AGREEMENT ...... D-1 APPENDIX E - PROPOSED FORM OF OPINION OF BOND COUNSEL ...... E-1 APPENDIX F - PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT ...... F-1

OFFICIAL STATEMENT

$42,000,000 CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK Revenue Refunding Bonds (Segerstrom Center for the Arts) Series 2016

INTRODUCTION

This Introduction contains only a brief summary of certain of the terms of the Bonds being offered and a full review should be made of the entire Official Statement, including the cover page and the Appendices in order to make an informed investment decision. All statements contained in this Introduction are qualified in their entirety by reference to the entire Official Statement. References to, and summaries of, provisions of the Constitution and laws of the State of California (the State) or any documents referred to herein do not purport to be complete and such references are qualified in their entirety to the complete provisions thereof.

General

This Official Statement, including the cover page and Appendices hereto (this Official Statement), provides certain information in connection with the offering of $42,000,000 aggregate principal amount of California Infrastructure and Economic Development Bank Revenue Refunding Bonds (Segerstrom Center for the Arts) Series 2016 (the Bonds). The Bonds will be issued pursuant to the provisions of the Bergeson-Peace Infrastructure and Economic Development Bank Act (commencing with Section 63000 and following) of the Government Code of the State, as amended (the Act), and the Indenture, dated as of June 1, 2016, between the California Infrastructure and Economic Development Bank (the Infrastructure Bank) and MUFG Union Bank, N.A., as trustee (the Trustee). All capitalized terms used in this Official Statement and not otherwise defined herein have the same meanings as in the Indenture. See Appendix DSUMMARY OF THE INDENTURE AND LOAN AGREEMENTDEFINITIONS for definitions of certain words and terms used but not otherwise defined herein.

Purposes of Issue

The proceeds from the sale of the Bonds will be used by the Center to (i) refund the 2011A Bonds (defined herein) and the 2008D Bonds (defined herein) issued by the Infrastructure Bank on behalf of the Center (collectively, the Bonds to be Refunded); and (ii) pay costs incurred in connection with the issuance of the Bonds, all as more fully described herein. See PLAN OF FINANCE herein.

The Center

Segerstrom Center for the Arts (the Center) is a nonprofit public benefit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the Code). The Center operates the Segerstrom Center for the Arts, previously called the Orange County Performing Arts Center, located in Costa Mesa, California. The Center is Orange Countys largest nonprofit arts organization. See Appendix A SEGERSTROM CENTER FOR THE ARTS for a description of the Center.

For the Fiscal Year ended June 30, 2015, the Center had total unrestricted program revenues of $37,870,933 and unrestricted program expenses of $46,744,022. The difference between the Centers program revenues and program expenses is supported by contributions from individuals, foundations and private organizations and earnings on investment. On June 30, 2015, the Centers total unrestricted assets were $369,213,761. Important information on the financial condition of the Center is set forth in Appendix A SEGERSTROM CENTER FOR THE ARTS and in the Centers financial statements and notes thereto set forth in Appendix BAUDITED FINANCIAL STATEMENTS OF THE CENTER, all of which should be carefully reviewed. The Bonds

The Bonds will be dated the date of original delivery and will mature in the principal amount and on the date and bear interest at the rate of interest per annum, all as set forth on the front cover. Interest on the Bonds will be payable in arrears on January 1 and July 1 of each year, commencing on January 1, 2017 (each, an Interest Payment Date). Interest on the Bonds will be calculated on the basis of a 360-day year of twelve 30-day months. The principal of and interest on the Bonds are payable to Beneficial Owners by DTC Participants through the facilities of DTC, New York, New York, while the Bonds are in the book-entry only system described in Appendix C. Purchases of Bonds may be made only in denominations of $5,000 or any integral multiple thereof. See THE BONDS herein and Appendix CBOOK-ENTRY ONLY SYSTEM attached hereto.

The Bonds are not subject to redemption prior to maturity.

Security and Sources of Payment of the Bonds

The Bonds will be issued pursuant to and secured by the Indenture. The Infrastructure Bank will lend the proceeds of the Bonds to the Center pursuant to a Loan Agreement, dated as of June 1, 2016 (the Loan Agreement), between the Infrastructure Bank and the Center. The Indenture provides that all of the Revenues and all amounts, including the proceeds of the sale of the Bonds (but excluding Additional Payments and payments made in connection with the Reserved Rights) held in any fund or account established pursuant to the Indenture other than the Rebate Fund are irrevocably pledged, to the punctual payment of the principal of, premium, if any, and interest on the Bonds. Said pledges will constitute a first and exclusive lien on the Revenues (defined herein) and the amounts in such funds and accounts for the payment of the Bonds. There will be no reserve fund with respect to the Bonds. See SECURITY AND SOURCES OF PAYMENT FOR THE BONDS herein.

The Revenues securing the Bonds consist principally of Repayment Installments to be paid by the Center under the Loan Agreement. The Centers payment obligations under the Loan Agreement are unconditional obligations of the Center secured by a lien on certain revenues of the Center. Under the Security Agreement (defined herein), the Center has granted to the Collateral Agent, as an agent acting on behalf of the Bondholders, a security interest in the Collateral (defined herein) of the Center to secure the Centers obligations under the Loan Agreement. The Collateral of the Center consists primarily of the Gross Revenues (defined herein) of the Center. The Loan Agreement includes certain financial covenants of the Center, including covenants requiring the Center to maintain certain levels of liquidity and annual revenues. See SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.

Parity Debt

The Centers obligations under the Loan Agreement will be secured on a parity basis with certain outstanding obligations of the Center (Parity Debt) under the Security Documents (defined herein). Upon issuance of the Bonds and defeasance of the Bonds to be Refunded, the Center will have $138,640,000 in aggregate principal amount of Parity Debt outstanding. Other than the Bonds, Parity Debt is currently held on a private placement basis by certain financial institutions and is subject to mandatory tender for purchase by the Center on certain dates as described herein. The Loan Agreement generally provides that the Center may not incur additional Parity Debt except for the purposes of defeasing any current or subsequent Parity Debt and/or to provide credit enhancement and/or liquidity support for then existing Parity Debt. See SECURITY AND SOURCES OF PAYMENT FOR THE BONDSParity Debt and INVESTMENT CONSIDERATIONSParity Debt.

Certain Information Related to this Official Statement

The descriptions herein of the Indenture, the Loan Agreement, and other agreements relating to the Bonds are qualified in their entirety by reference to such documents and the description herein of the Bonds is qualified in its entirety by the form thereof and the information with respect thereto included in such documents. See Appendix DSUMMARY OF THE INDENTURE AND THE LOAN AGREEMENTTHE INDENTURE for a brief summary of the rights and duties of the Infrastructure Bank, the respective rights and remedies of the Trustee

2 and the respective Bondholders upon an event of default, provisions relating to amendments of the Indenture and procedures for defeasance of the Bonds and certain other provisions of the Indenture.

The information and expressions of opinion herein speak only as of their date and are subject to change without notice. Neither delivery of this Official Statement nor any sale made hereunder nor any future use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the Infrastructure Bank or the Center.

PLAN OF FINANCE

In 2004, the Infrastructure Bank issued $180,000,000 aggregate principal amount of its Variable Rate Revenue Bonds (Orange County Performing Arts Center), Series 2004A, Series 2004B and Series 2004C (collectively, the 2004 Bonds) pursuant to an Indenture dated as of July 1, 2004, by and between the Infrastructure Bank and Wells Fargo Bank, National Association, as trustee. A portion of the proceeds of the 2004 Bonds was used to construct an approximate 2,000 seat concert hall named the Renée and Henry Segerstrom Concert Hall (Segerstrom Concert Hall), an approximate 500 seat music hall named the Samueli Music Theater (Samueli Theater), a donor room, rehearsal spaces, artist accommodations, an education center and a public restaurant. In 2007, the Infrastructure Bank issued $85,000,000 aggregate principal amount of its Variable Rate Revenue Bonds (Orange County Performing Arts Center), Series 2007A and Series 2007B (collectively, the 2007 Bonds) pursuant to an Indenture dated as of March 1, 2007, by and between the Infrastructure Bank and Wells Fargo Bank, National Association, as trustee. A portion of the proceeds of the 2007 Bonds was used to fund additional construction costs associated with Segerstrom Concert Hall, Samueli Theater and related spaces. The facilities financed with proceeds of the 2004 Bonds and the 2007 Bonds are referred to herein as the Project.

In 2008, the Infrastructure Bank refunded all of the outstanding bonds, the proceeds of which were used to finance the Project, with the issuance of $240,000,000 aggregate principal amount of its Variable Rate Demand Revenue Bonds (Orange County Performing Arts Center), Series 2008A (the 2008A Bonds), Series 2008B (the 2008B Bonds) and Series 2008C (the 2008C Bonds) pursuant to an Indenture, dated as of July 1, 2008, between the Infrastructure Bank and Union Bank of California, N.A. (now known as MUFG Union Bank, N.A.), as trustee. Proceeds of the 2008A Bonds, 2008B Bonds and 2008C Bonds were loaned to the Center pursuant to a Loan Agreement, dated as of July 1, 2008, by and between the Infrastructure Bank and the Center. The 2008A Bonds, 2008B Bonds and 2008C Bonds, along with other funds of the Center, paid for the redemption prices of the 2004 Bonds and the 2007 Bonds, together with interest accrued thereon to the dates respectively fixed for redemption.

In 2011, the Infrastructure Bank refunded the 2008C Bonds, with the issuance of $28,000,000 aggregate principal amount of its Revenue Bonds (Orange County Performing Arts Center), Series 2011A (the 2011A Bonds) pursuant to an Indenture dated as of June 1, 2011, by and between the Infrastructure Bank and Union Bank, N.A. (now known as MUFG Union Bank, N.A.), as trustee. The 2011A Bonds and an equity contribution from the Center paid for the redemption prices of the 2008C Bonds, together with interest accrued thereon to the dates respectively fixed for redemption. Also in 2011, the Center remarketed and amended certain terms of the 2008A Bonds and 2008B Bonds. The 2008A Bonds and 2008B Bonds were modified into three series of bonds, Series 2008A in the aggregate principal amount of $70,100,000, the Series 2008B in the aggregate principal amount of $70,100,000 and the Series 2008D in the aggregate principal amount of $24,230,000 (the 2008D Bonds, and collectively together with the 2008A Bonds and the 2008B Bonds, the 2008 Bonds).

In 2014, the Center remarketed and amended certain terms of the 2008 Bonds. In 2014, U.S. Bank National Association purchased the 2008A Bonds, Wells Fargo Municipal Capital Strategies, LLC purchased the 2008B Bonds and Compass Mortgage Corporation purchased the 2008D Bonds. As described below, the 2008D Bonds will be redeemed on or about the date of issuance of the Bonds with a portion of the Bond Proceeds (defined below). The 2008A Bonds and the 2008B Bonds constitute Parity Debt of the Center (see SECURITY AND SOURCES OF PAYMENT FOR THE BONDS below) and are currently outstanding in the aggregate principal amounts of $69,320,000 and $69,320,000 respectively. The 2008A Bonds and 2008B Bonds are currently subject to mandatory purchase by the Center on July 3, 2017. The Center has negotiated an extension of the mandatory purchase date for the 2008A Bonds and the 2008B Bonds to July 1, 2019 that will be effective as of the date of issuance of the Bonds.

3 The proceeds of the Bonds (the Bond Proceeds) will be used to refund or pay the 2011A Bonds and the 2008D Bonds which are outstanding in the aggregate principal amount totaling $51,960,000 and to pay costs of issuance of the Bonds. The Bond Proceeds will be deposited with the Trustee in the Bond Proceeds Fund. A portion of the Bond Proceeds will be set aside or transferred by the Trustee from the Bond Proceeds Fund for the payment of the 2011A Bonds pursuant to the 2011 Refunded Bonds Escrow Agreement, dated as of June 1, 2016 (the 2011 Escrow Agreement). A portion of the Bond Proceeds will be set aside or transferred by the Trustee from the Bond Proceeds Fund to redeem the 2008D Bonds pursuant to the 2008 Refunded Bonds Escrow Agreement, dated as of June 1, 2016 (the 2008 Escrow Agreement). Moneys deposited pursuant to the 2008 Escrow Agreement and 2011 Escrow Agreement will be held un-invested and will provide amounts sufficient to pay the principal of and interest on the Bonds to be Refunded when due pursuant to the respective escrow agreements. Upon the deposit of the Bond Proceeds into the escrow accounts pursuant to the 2008 Escrow Agreement and the 2011 Escrow Agreement, the Bonds to be Refunded will no longer be deemed outstanding. The moneys and securities to be applied to retire the Bonds to be Refunded will not be available to pay debt service on the Bonds.

Management of the Center is considering a plan to refinance a portion of the 2008A Bonds and 2008B Bonds using tax-exempt obligations in 2016. Such potential refinancing has not been approved by the respective boards of the Infrastructure Bank or the Center.

ESTIMATED SOURCES AND USES OF FUNDS

Estimated Sources of Funds: Par Amount of Bonds $42,000,000.00 Original Issue Premium 11,072,460.00 2008D and 2011A Accrued Interest Contributions 46,311.89 Total Sources $53,118,771.89

Estimated Uses of Funds:

Refund 2011A Bonds and 2008D Bonds $52,687,347.44 Costs of Issuance(1) 431,424.45 Total Uses $53,118,771.89

(1) Includes underwriters discount and fees and expenses of the Infrastructure Bank, the Trustee, the Centers financial advisor fees, the Rating Agency, legal fees and expenses, and printing costs.

THE BONDS

General

The Bonds will be dated the date of original delivery and will mature in the principal amount and in the years and bear interest at the respective rates of interest per annum, all set forth on the cover page hereof. Purchases of Bonds may be made only in denominations of $5,000 or any integral multiple thereof. The Trustee is authorized to pay the principal of Bonds when duly presented for payment at maturity and to cancel such Bonds upon payment thereof

The Bonds will be issued in book-entry only form registered in the name of Cede & Co., a nominee of DTC, as securities depository. The principal of and interest on the Bonds are payable to Beneficial Owners by DTC Participants through the facilities of DTC, New York, New York, while the Bonds are in the book-entry only system described in Appendix C. No physical delivery of the Bonds will be made to the purchasers. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, unless otherwise indicated herein, reference to Bondholders or registered owners shall mean Cede & Co., and shall not mean the Beneficial Owners of the Bonds. See Appendix CBOOK-ENTRY ONLY SYSTEM herein.

Interest on the Bonds

Interest on the Bonds will be payable in arrears on each Interest Payment Date or upon maturity or acceleration. Each Bond will bear interest as set forth on the inside front cover from the Interest Payment Date to which interest has been paid as of the date on which it is authenticated or, if it is authenticated on or before the Record Date for the first Interest Payment Date, from its Issue Date; provided, however, that if, at the time of authentication of any Bond, interest is in default on Outstanding Bonds, such Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on the Outstanding Bonds. Interest on the Bonds will be calculated on the basis of a 360-day year and twelve 30-day months.

Payment of the interest on each Bond will be made to the person appearing on the Bond Register as the registered owner thereof as of the applicable Record Date, such interest to be paid by the Trustee to such Bondholder (i) by check mailed by first class mail on the applicable Interest Payment Date, to such Bondholders address as it appears on the Bond Register, or (ii) upon written request at least three Business Days prior to the applicable Record Date of the Holder of all of the Outstanding Bonds or the Holder of Outstanding Bonds aggregating not less than $500,000 in principal amount, by wire transfer in immediately available funds at an account maintained in the United States at such wire address as such Bondholder will specify in its written notice (any such written request will remain in effect until rescinded in writing by such Bondholder); except, in each case, that, if and to the extent that there is a default in the payment of the interest due on such Interest Payment Date, such defaulted interest will be paid to the Bondholder in whose name any such Bonds are registered on the Bond Register at the close of business on a special record date to be fixed by the Trustee. Notwithstanding the foregoing, if any Bond is authenticated as of a day during the period from the day after the Record Date immediately preceding an Interest Payment Date to such Interest Payment Date, inclusive, such Bond will bear interest from such Interest Payment Date; provided, however, that if there is a default in the payment of interest due on such Interest Payment Date, then such Bond will bear interest as provided in the preceding sentence. Both the principal of and premium, if any, on the Bonds will be payable upon surrender thereof at the Principal Office of the Trustee.

No Redemption of Bonds

The Bonds are not subject to redemption prior to their maturity date.

Registration and Transfer of Bonds

The Indenture provides that the Trustee will keep or cause to be kept at its Principal Office sufficient books for the registration and the registration of transfer of the Bonds constituting the Bond Register, which shall at all times, during regular business hours with reasonable prior notice, be open to inspection by the Infrastructure Bank and the Center; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register the transfer or cause to be registered the transfer, on said Bond Register, of Bonds.

Registration of any Bond may, in accordance with the Indenture, be transferred, upon the Bond Register required to be kept pursuant to the Indenture, by the Person in whose name it is registered, in person or by his or her duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by a written instrument of transfer in a form approved by the Trustee, duly executed. Whenever any Bond shall be surrendered for registration of transfer, the Infrastructure Bank shall prepare and execute and the Trustee shall authenticate and deliver a new Bond or Bonds of the same tenor in Authorized Denominations. The Trustee shall require the payment by the Bondholder requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer, and there shall be no other charge to any Bondholders for any such transfer. The reasonable cost of printing Bonds and any services rendered or expenses incurred by the Trustee or the Infrastructure Bank in connection with any transfer shall be paid by the Center. No registration of transfer of Bonds upon the Bond Register shall be required to be made during the period after any Record Date and prior to the related Interest Payment Date or during the period of fifteen (15) days next preceding the date on which the Trustee gives any notice of redemption, nor shall any registration of transfer of Bonds called for redemption be required.

Bonds may be exchanged at the Principal Office of the Trustee for a like aggregate principal amount of Bonds of the same tenor and in Authorized Denominations. Whenever any Bond shall be surrendered for exchange, the Infrastructure Bank shall prepare and execute and the Trustee shall authenticate and deliver new Bonds of the

5 same tenor and of the requested Authorized Denominations. The Trustee shall require the payment by the Bondholder requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange, and there shall be no other charge to any Bondholders for any such exchange. The reasonable cost of printing Bonds and any services rendered or expenses incurred by the Trustee or the Infrastructure Bank in connection with any exchange shall be paid by the Center. No exchange of Bonds shall be required to be made during the period after any Record Date and prior to the related Interest Payment Date or during the period of fifteen (15) days next preceding the date on which the Trustee gives notice of redemption, nor shall any exchange of Bonds called for redemption be required.

SECURITY AND SOURCES OF PAYMENT FOR THE BONDS

Security for the Bonds Under the Indenture

The Infrastructure Bank is obligated to pay the principal of, premium, if any, and interest on the Bonds solely from the Revenues received from the Center under the Loan Agreement and the other funds available therefor under the Indenture. Pursuant to the Indenture, the Infrastructure Bank has pledged to the Trustee for the benefit of the Bondholders all the Revenues. Revenues is defined as all payments received by the Infrastructure Bank or the Trustee from the Center pursuant to or with respect to the Loan Agreement (except Additional Payments, as defined in the Indenture, and any payments made in connection with the Reserved Rights), including, without limiting the generality of the foregoing, Repayment Installments (including both timely and delinquent payments), prepayments and all income derived from the investment of any money in any fund or account established pursuant to the Indenture (other than amounts received for or on deposit in the Rebate Fund.

Under the Indenture, all of the Revenues and all amounts, including the proceeds of the sale of the Bonds (but excluding Additional Payments and any payments made in connection with the Reserved Rights) held in any fund or account established pursuant to the Indenture other than the Rebate Fund are irrevocably pledged, to the punctual payment of the principal of, premium, if any, and interest on the Bonds. Said pledges will constitute a first and exclusive lien on the Revenues and the amounts in such funds and accounts for the payment of the Bonds. All Revenues and other amounts pledged will be held in trust for the benefit of the Bondholders from time to time of the Bonds, but will nevertheless be disbursed, allocated and applied solely for the uses and purposes set forth in the Indenture.

Pursuant to the Indenture, the Infrastructure Bank will transfer in trust, grants a security interest in, assigns and sets over to the Trustee, for the benefit of the Bondholders from time to time of the Bonds to the extent of its interest therein, all of the Revenues and the other amounts described in the immediately preceding paragraph and all right, title and interest and privileges it has in and under the Agreement, except Reserved Rights, including, without limitation, the right to collect and receive directly all of the Revenues and the right to hold and enforce any security therefor; and any Revenues collected or received by the Infrastructure Bank will forthwith be paid by the Infrastructure Bank to the Trustee. The assignment to the Trustee is solely in its capacity as Trustee and subject to the provisions of the Indenture and in taking or refraining from taking any action under the Agreement pursuant to such assignment, the Trustee will be entitled to the protections and limitations from liability afforded it as Trustee under the Indenture. The Trustee also will be entitled to take all steps, actions and proceedings reasonably necessary in its judgment (1) to enforce the terms, covenants and conditions of, and preserve and protect the priority of its interest in and under, the Agreement and any other security agreement with respect to the Bonds, and (2) to assure compliance with all covenants, agreements and conditions on the part of the Infrastructure Bank contained in the Indenture with respect to the Revenues.

THE BONDS ARE LIMITED OBLIGATIONS OF THE INFRASTRUCTURE BANK AND ARE NOT A LIEN OR CHARGE UPON THE FUNDS OR PROPERTY OF THE INFRASTRUCTURE BANK, EXCEPT TO THE EXTENT OF THE PLEDGE AND THE ASSIGNMENT PROVIDED FOR IN THE INDENTURE. NEITHER THE STATE OF CALIFORNIA NOR THE INFRASTRUCTURE BANK SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF BONDS, PREMIUM, IF ANY, OR THE INTEREST THEREON, EXCEPT FROM LOAN REPAYMENTS RECEIVED BY THE INFRASTRUCTURE BANK FROM THE CENTER AND THE OTHER FUNDS PROVIDED THEREFOR PURSUANT TO THE INDENTURE. NEITHER THE

6 FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF CALIFORNIA IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE BONDS DO NOT CONSTITUTE A DEBT OR LIABILITY OF THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF OTHER THAN THE LIMITED OBLIGATION OF THE INFRASTRUCTURE BANK, PAYABLE SOLELY FROM LOAN REPAYMENTS RECEIVED BY THE INFRASTRUCTURE BANK FROM THE CENTER AND THE OTHER FUNDS PROVIDED THEREFOR PURSUANT TO THE INDENTURE. NEITHER THE STATE OF CALIFORNIA NOR ANY POLITICAL SUBDIVISION THEREOF IS IN ANY MANNER OBLIGATED TO MAKE ANY APPROPRIATION FOR SUCH PAYMENTS. THE INFRASTRUCTURE BANK HAS NO TAXING POWERS.

Security Interest in Gross Revenues of the Center

The Revenues securing the Bonds under the Indenture consist principally of Repayment Installments to be paid by the Center under the Loan Agreement. The Centers payment obligations under the Loan Agreement are unconditional obligations of the Center secured by a lien on certain revenues of the Center as described below. The security interest in such revenues is provided for under the Security Agreement (defined below), under which the Center creates a security interest in the Collateral of the Center (defined below) consisting principally of the Gross Revenues of the Center (defined below).

Pursuant to the Security Agreement, dated as of June 1, 2011, as amended (the Security Agreement), by and between the Center and Union Bank, N.A. now known as MUFG Union Bank, N.A., as collateral agent (the Collateral Agent), the Center has granted to the Collateral Agent, on behalf of creditors under the Security Agreement, a security interest in the Collateral of the Center to secure the Centers obligations under the Loan Agreement and the other Parity Debt. Pursuant to the Intercreditor and Collateral Agency Agreement, dated as of June 1, 2011, as amended (the Intercreditor Agreement), and together with the Security Agreement, the Security Documents), by and among Wells Fargo Municipal Capital Strategies, LLC, Compass Mortgage Corporation, U.S. Bank National Association, the Collateral Agent and the Trustee (for and on behalf of Wells Fargo Municipal Capital Strategies, LLC, U.S. Bank National Association, Compass Mortgage Corporation, and the Trustee), certain terms of the intercreditor arrangements among the various secured parties are provided for.

Under the Indenture, Parity Debt is defined as the Loan Agreement, the Series 2008 Loan Agreement, the obligations of the Center under the Continuing Covenants Agreements (defined below), and any other indebtedness of the Center that is secured by a pledge of, and security interest in, the Gross Revenues on parity with obligations of the Center under the Loan Agreement, including (i) obligations of the Center pursuant to any Index Rate Agreement, as defined in the Security Agreement and (ii) any obligations with respect to the Series 2008 Loan Agreement that may be secured pursuant to the Security Documents.

Under the Security Agreement, Collateral is defined as (i) all Gross Revenues, (ii) the Pledged Accounts and all amounts, securities or financial assets held therein or credited thereto and all proceeds thereof, including all rights of the Center to receive moneys due in respect of the same, all claims with respect to any Pledged Accounts and all income or gain earned in respect of the financial assets held in or credited to any Pledged Accounts, and (iii) all security interests and supporting obligations with respect to any of the foregoing, all proceeds and products of any of the foregoing, and all insurance of the foregoing and the proceeds thereof.

Under the Security Agreement, Gross Revenues is defined as, as of any date, all gross revenues, cash, investments, endowments, general intangibles and Contract Rights, and all gifts and donations, cash, investments and other contributions, of any type, in each case, received or receivable by or on behalf of the Center, and all existing and after-acquired rights to receive the same, whether in the form of accounts, chattel paper, general intangibles, instruments, accounts receivable, Contract Rights or other rights, and the proceeds of the same whether now owned or held or hereafter coming into being; but excluding, however, Restricted Property.

Under the Security Agreement, Restricted Property is defined as all gifts, cash, grants, bequests, donations, investments, endowments and accounts, chattel paper, general intangibles, instruments and investment property and contributions of any type to the Center heretofore or hereafter made and all existing and after acquired

7 rights to receive same, in whatever form, and the income, proceeds and gains derived therefrom in whatever form, in each case, that are specifically restricted by the donor or grantor to a particular purpose which is inconsistent with their use for the payment of the Secured Obligations. In determining whether amounts held in the endowment are deemed to be Restricted Property or Collateral, as of any date of determination, the amount of Restricted Property shall be deemed to be (i) the amount identified as Permanently Restricted Assets in the Centers then-most recent annual audited financial statements delivered to the Secured Creditors, minus, (ii) any amounts included in such financials as Permanently Restricted Assets that have ceased to be subject to a restriction by the donor or grantor that is inconsistent with their use for payment of the Secured Obligations.

Under the Security Agreement, Pledged Accounts is defined as (i) all deposit and/or securities accounts listed and (ii) any and all other deposit and/or securities accounts maintained by the Center from time to time which do not hold any Restricted Property.

Under the Security Agreement, Secured Obligations is defined as (i) all obligations of the Center under any Credit Facility Agreement, including, without limitation, all obligations of the Center to reimburse any LC Issuer for the amount of all drawings on any Letter of Credit, (ii) all obligations and indebtedness of the Center under any Index Rate Agreement, (iii) all obligations of the Center under any Loan Agreement, including, without limitation, the obligations to pay amounts sufficient to pay the principal of, premium, if any, and interest on, and the purchase price of, the Bonds, the 2008A Bonds, the 2008B Bonds and the 2011A Bonds, and (iv) any and all reasonable expenses and charges, legal or otherwise, suffered or incurred by the Collateral Agent and the Secured Creditors, and any of them individually, in collecting or enforcing any of such indebtedness, obligations, and liabilities or in realizing on or protecting or preserving any security therefor, including, without limitation, the lien and security interest granted hereby; in each case whether now existing or hereafter arising (and whether arising before or after the filing of a petition in bankruptcy and including all interest, costs, fees and charges after the entry of an order for relief against the Center in a case under Title 11 of the United State Bankruptcy Code or any similar proceeding, whether or not such interest, costs fees and charges would be an allowed claim against the Center in such proceeding), due or become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

Requests for copies of the Security Documents should be addressed to the Trustee.

Parity Debt

The Centers obligations under the Loan Agreement to make Repayment Installments will be secured on a parity basis with the 2008A Bonds and the 2008B Bonds under the Security Documents as described above under Security Interest in the Gross Revenues of the Center. The Center may incur additional Parity Debt only for the purposes of defeasing any current or subsequent Parity Debt and/or to provide credit enhancement and/or liquidity support for current or subsequent Parity Debt. The 2008A Bonds and 2008B Bonds are currently subject to mandatory purchase by the Center on July 3, 2017. The Center has negotiated with the current direct purchase holders a conversion of the 2008A Bonds and 2008B Bonds to a new interest rate period with a mandatory purchase date of July 1, 2019 that will be effective on or about the date of issuance of the Bonds. See Financial Covenants below and INVESTMENT CONSIDERATIONSParity Debt, Appendix DSUMMARY OF THE INDENTURE AND THE LOAN AGREEMENTTHE LOAN AGREEMENT.

Financial Covenants

The Loan Agreement has financial and other covenants, certain of which are summarized below. For additional information on such covenants, including definitions of certain defined terms, see Appendix D SUMMARY OF THE INDENTURE AND THE LOAN AGREEMENT.

The Loan Agreement generally prohibits the Center from incurring any additional Parity Debt except for the purposes of defeasance of any then existing Parity Debt and/or to provide credit enhancement and/or liquidity support for then existing Parity Debt.

8 Under the Loan Agreement, the Center is required to maintain an Unrestricted Cash and Investments to Debt Ratio of not less than 0.30 to 1.00, measured at each June 30th and December 31st. Unrestricted Cash and Investments to Debt Ratio means, as of any date of determination, the ratio determined by dividing Unrestricted Cash and Investments as of such date by Total Debt as of such date. Unrestricted Cash and Investments is defined as the sum of cash and cash equivalents, and investments which can be converted to cash within five (5) Business Days, in any case, the use of which is not restricted. Total Debt is defined as the sum of (i) the amount of the line item by that name as set forth in the most recent financial statements of the Center plus (ii) the aggregate principal amount of all additional indebtedness incurred by the Center since the date of such financial statements.

Under the Loan Agreement, the Center is required to also maintain a Debt Service Coverage Ratio of not less than 1.15 to 1.0 for the 12-month fiscal year period ended June 30. In the event the Center is unable to comply with the foregoing Debt Service Coverage Ratio in any fiscal year, the Center agrees to take reasonable steps to meet or exceed such ratio in the following fiscal year; provided, however, that failure to comply with such Debt Service Coverage Ratio shall not constitute an Event of Default so long as the Center meets or exceeds the required Debt Service Coverage Ratio for such following fiscal year.

Debt Service Coverage Ratio is defined as, for any period of time, the ratio determined by dividing Income Available for Debt Service for such period by Debt Service Requirements for such period Income Available for Debt Service is defined as the sum of the change in Unrestricted Net Assets for such period, plus depreciation, amortization, and interest expense (each as determined in accordance with GAAP) for such period, minus or plus (as applicable) the unrealized gains or losses on investments (to the extent included in unrestricted income or expense), minus or plus (as applicable) any gains or losses on the sale of assets (to the extent included in unrestricted income or expense), minus or plus (as applicable) any unrealized gains or losses resulting from changes in the valuation of hedging agreements (to the extent included in unrestricted income or expense). Unrestricted Net Assets is defined as the assets of the Center to the extent the use of such assets is not restricted, as determined in accordance with generally accepted accounting principles, consistently applied. Debt Service Requirements is defined as (i) the amounts payable as lease rentals in respect of Capitalized Lease Obligations of the Center, (ii) the amounts payable to the Trustee in respect of principal of the Bonds Outstanding (including scheduled mandatory redemptions of principal) and interest on such Bonds Outstanding and (iii) the amounts payable to all other holders of Indebtedness of the Center other than as described in clauses (i) and (ii) above (A) with respect to the principal of such Indebtedness (including mandatory redemptions and mandatory prepayments of principal) and (B) as interest on such Indebtedness; provided, however, in the case of an obligation in which 75% or more of the principal becomes due on one date, Debt Service Requirements shall be calculated for the period of determination as if the principal of such obligation is amortized in substantially equal annual amounts over a period of twenty (20) years from such due date. For the avoidance of doubt, in determining the due date of amounts payable when calculating Debt Service Requirements, the mandatory tender of principal that is purchased with remarketing proceeds or other available funds is not deemed due on any such tender date.

INVESTMENT CONSIDERATIONS

The following information should be considered by prospective investors in evaluating the Bonds. However, the following does not purport to be an exclusive listing of risks and other considerations that may be relevant to investing in the Bonds, and the order in which the following information is presented is not intended to reflect the relative importance of any such risks and considerations. See Appendix ASEGERSTROM CENTER FOR THE ARTS and Appendix BAUDITED FINANCIAL STATEMENTS OF THE CENTER for additional information regarding the Center.

General

No representation or assurance can be made that revenues will be realized by the Center in amounts sufficient to make payments required by the Loan Agreement and thus to pay maturing principal, premium (if any) and interest on the Bonds. As with many cultural institutions, the Center operates at a deficit and relies on contributions from donors to meet its expenses. There can be no assurance that contributions from donors will continue to be sufficient to bridge the difference between revenues and expenses, or that income and receipts will be realized by the Center in amounts sufficient to make payments under the Loan Agreement and thus sufficient to pay

9 the principal, premium (if any) or interest on the Bonds. Future economic and other conditions, including, without limitation, the destruction or loss of a substantial portion of the Centers facilities, litigation, competition, reduction in the amounts received by the Center through fundraising efforts and reduction of the value of endowment funds may adversely affect the income and receipts of the Center. There can be no assurance that the Centers income and receipts will not decrease.

Because of income, receipts, and fundraising activities and contributions, the Center expects to have adequate resources to pay in full the Repayment Installments under the Loan Agreement which are to be applied to pay debt service on the Bonds from time to time when due. But this is neither a certainty nor an assurance. Capabilities of management, future legislation, regulatory actions, economic conditions, changes in demand for the performing arts, competition, lack of use of the Project by the currently-intended users, or other factors in addition to those described in the immediately preceding paragraph, could adversely affect the Centers ability to pay its obligations under the Loan Agreement.

Center Financial Matters

For the Fiscal Year ended June 30, 2015, the Center had total unrestricted program revenues of $37,870,933 and unrestricted program expenses of $46,744,022. The Centers total net assets have increased from the 2006 Fiscal Year to the 2015 Fiscal Year. In the Fiscal Year ended June 30, 2006, the Center had a total of $237,109,883 in net assets. In the Fiscal Year ended June 30, 2015, the Center had a total of $258,882,481 in net assets. The difference between the Centers program revenues and program expenses is supported by contributions from individuals, foundations and private organizations and earnings on investments, all as discussed below. Additional information on the financial condition of the Center is set forth in Appendix ASEGERSTROM CENTER FOR THE ARTS and in the Centers financial statements and notes thereto set forth in Appendix B AUDITED FINANCIAL STATEMENTS OF THE CENTER, all of which should be carefully reviewed.

The Centers program revenues are insufficient to cover its program expenses. The Center thus relies upon the ongoing contributions from its donors and fundraising events in addition to income from its endowment. In the Fiscal Year ended June 30, 2015, the Center received a total of $28,140,049 from contributions and special events. This is comprised of $883,813 in permanently restricted contributions, $19,521,653 in temporarily restricted contributions and $7,734,583 in unrestricted contributions. For more information on donor contributions and special events, and for comparables over the last five Fiscal Years, see Appendix ASEGERSTROM CENTER FOR THE ARTS and Appendix BAUDITED FINANCIAL STATEMENTS OF THE CENTER.

In addition to contributions from its donors, the Center has an Endowment and other investment income. In the Fiscal Year ended June 30, 2015, the Center received a total of $2,857,019 from its Endowment and other investments. $1,446,807 of this total figure is comprised of temporarily restricted funds, and $1,410,212 of this total figure is comprised of unrestricted funds. As of June 30, 2015, the end of the 2015 Fiscal Year, the Center had $62,546,985 in its endowment. Of this total amount, $39,514,877 consisted of permanently restricted funds and $23,032,108 consisted of temporarily restricted funds. As of April 30, 2016, the Center estimated the market value of its Endowment to be $57,614,418 (unaudited). See Appendix ASEGERSTROM CENTER FOR THE ARTS and Appendix BAUDITED FINANCIAL STATEMENTS OF THE CENTER for more information.

Parity Debt

The Centers other Parity Debt secured on parity with the Bonds consists of the 2008A Bonds and the 2008B Bonds. The Bonds and the Parity Debt are secured by a security interest in the Collateral of the Center pursuant to the Security Documents. The Centers repayment of the Bonds will be subject to the parity lien securing Parity Debt. Under the Loan Agreement, the Center may incur additional Parity Debt only for the purposes of defeasing any current or subsequent Parity Debt and/or to provide credit enhancement and/or liquidity support for current or subsequent Parity Debt.

The 2008A Bonds and 2008B Bonds are currently subject to mandatory purchase by the Center on July 3, 2017. The Center has negotiated with the current direct purchase holders a conversion of the 2008A Bonds and 2008B Bonds to a new interest rate period with a mandatory purchase date of July 1, 2019 that will be effective on

10 or about the date of issuance of the Bonds. There can be no assurance that the Center will be able to obtain sufficient credit support to remarket the 2008A Bonds and/or the 2008B Bonds on any mandatory purchase date or that the bond market will permit a remarketing of the Series 2008A Bonds and/or the 2008B Bonds, or that the Center would have sufficient funds to retire unremarketed Series 2008A Bonds or 2008B Bonds on the required dates. Failure to retire the unremarketed Series 2008A Bonds or 2008B Bonds on the required dates could cause the default of the 2008A Bonds, the 2008B Bonds, and/or the Bonds.

In connection with the private placement of the 2008A Bonds and 2008B Bonds, the Center has entered into separate Continuing Covenant Agreements, each dated as of June 1, 2014, with U.S. Bank National Association, as purchaser of the 2008A Bonds and Wells Fargo Municipal Capital Strategies, LLC, as purchaser of the 2008B Bonds (the Covenant Agreements). Under the Covenant Agreement, the Center has made certain representations and warranties and agreed to certain covenants and events of default that differ in certain ways from the representations, warranties and covenants of the Center under the Loan Agreement and Security Agreement. These covenants and any other provisions of the Covenant Agreements may be amended or waived at any time by the parties thereto and without the consent of the Bondholders. Further, the Loan Agreement and Indenture provide for interest rates that differ from the interest rate on the Bonds, including a default rate and a taxable rate.

Pursuant to the Intercreditor Agreement, the consent of the secured creditor(s) holding at least 50% of the secured obligations secured by the Security Agreement is required to direct the Collateral Agent to enforce the rights of any such creditor under the Security Documents. The Intercreditor Agreement provides for other provisions relating to the intercreditor arrangements among the holders of Parity Debt.

Requests for copies of the Security Documents should be addressed to the Trustee.

Competing Facilities

The Center, Orange Countys largest nonprofit arts organization and one of the nations most prominent cultural institutions, faces little direct competition from other nonprofit arts organizations in the Orange County market. The closest competitors, especially in regard to Broadway musicals, are in Los Angeles, California and San Diego, California. However, Orange County is home to a number of outdoor venues, including Pacific Amphitheater in Costa Mesa, California (seats 8,500) and the Irvine Bowl in Laguna Beach, California (seats 2,700). Other indoor venues and theaters in Orange County include the City National Grove of Anaheim, California (seats 1,700), House of Blues in Anaheim, California (seats up to 2,000), Irvine Barclay Theatre & Cheng Hall in Irvine, California (seats 756), La Mirada Theatre for the Performing Arts in La Mirada, California (seats approximately 1,200), Soka Performing Arts Center in Aliso Viejo, California (1,000) and Musco Center for the Arts in Orange, California (1,044).

Seismic Risks

The Center is located in a seismically active region of California. During the past 150 years, the Southern California area, where the Center is located, experienced several major and numerous minor earthquakes. If a major earthquake were to occur, the Centers facilities could sustain extensive damages, ranging from total destruction to little or no damage at all. Any damage to facilities or other properties could adversely affect the Centers revenues. The Center carries no earthquake insurance. The Center is unable to predict when or if another earthquake will occur and what impact it will have on the Center and its operations. The Loan Agreement does not require earthquake insurance.

Risk Factors Generally Affecting Performing Arts Venues

There are many diverse risks relating to operation of a performing arts facility not within the Centers control, which may substantially affect the profitability and financial feasibility of the Center. Such risks include the risk of adverse changes in general and economic conditions; over-supply of similar facilities in the area; population decreases; environmental risks and hazards; operating deficits; adverse changes in neighborhood values and uninsured losses. Such losses also include the possibility of fire and other casualty or condemnation. Additionally,

11 the following factors may adversely affect the operations of performing arts venues, including the operations of the Center, to an extent that cannot be determined at this time:

(i) A reduced demand for performing arts productions or other services arising from a variety of possible causes, including but not limited to change in demographics, or from adverse or declining economic conditions in the areas from which the Center draws a significant portion of its gate receipts;

(ii) Cost increases without corresponding increases in revenue could result from, among other factors, increases in the salaries, wages, and fringe benefits of theater and opera employees and inflation;

(iii) Future legislation and regulation affecting nonprofit corporations involved in the performing arts and their tax-exempt status;

(iv) Competition from performing arts venues located throughout the local region, some of which may offer lower ticket prices than those the Center charges; and

(v) Renegotiation of labor union contracts with the actors, directors, producers, stage hands and other members of the production team that could result in strikes or temporary work stoppages.

Enforceability of Remedies

The remedies available to the Trustee or the Bondholders upon an Event of Default under the Indenture or Loan Agreement are in many respects dependent upon judicial actions which are often subject to discretion and delay, and such remedies may not be readily available or may be limited. In particular, under the United States Bankruptcy Code, a bankruptcy case may be filed by or against the Center . In general, the filing of any such petition operates as a stay against enforcement of the terms of the agreements to which the bankrupt entity is a party. The various legal opinions to be delivered concurrently with the Bonds (including Bond Counsels approving opinion) will be qualified, as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by general principles of equity applied in the exercise of judicial discretion.

Tax-Exempt Status

Tax-Exempt Status of Interest on the Bonds. The Code imposes a number of requirements that must be satisfied for interest on nonprofit obligations, such as the Bonds, to be excludable from gross income for federal income tax purposes. These requirements include limitations on the use of Bond proceeds, limitations on the investment earnings of Bond proceeds prior to expenditure, a requirement that certain investment earnings on Bond proceeds be paid periodically to the United States and a requirement that the issuers file an information report with the Internal Revenue Service (the IRS). The Infrastructure Bank and the Center have covenanted in certain of the documents referred to herein that they will comply with such requirements. Failure of the Center to comply with the requirements stated in the Code and related regulations, rulings and policies may result in the treatment of interest on the Bonds as taxable, retroactively to the Issue Date of the Bonds.

Tax-Exempt Status of the Center. The tax-exempt status of interest on the Bonds presently depends upon the maintenance by the Center of its status as an organization described in Section 501(c)(3) of the Code. The maintenance of such status is contingent upon compliance with general rules promulgated in the Code and related regulations regarding the organization and operation of tax-exempt entities, including their operation for charitable purposes and their avoidance of transactions which may cause their earnings or assets to inure to the benefit of private individuals. As these general principles were developed primarily for public charities which do not conduct large-scale technical operations and business activities, they often do not adequately address the myriad of operations and transactions entered into by modern tax-exempt organizations.

Tax-exempt organizations such as the Center are subject to scrutiny from ongoing IRS audit programs. The primary penalty available to the IRS under the Code with respect to a tax-exempt entity engaged in unlawful, private benefit is the revocation of tax-exempt status. Although the IRS has not frequently revoked the tax-exempt status of

12 nonprofit corporations or trusts, it could do so in the future. Loss of tax-exempt status by the Center would most likely result in loss of tax exemption of interest on the Bonds, and defaults in covenants regarding the Bonds would likely be triggered. Loss of tax-exempt status of the Center would also have material adverse consequences on the financial condition of the Center.

In some cases, the IRS has imposed substantial monetary penalties on tax-exempt nonprofit corporations in lieu of revoking their tax-exempt status. In those cases, the IRS and nonprofit corporations entered into settlement agreements requiring the nonprofit corporation to make substantial payments to the IRS. Given the potential exemption risks, the Center could be at risk for incurring monetary and other liabilities imposed by the IRS.

In lieu of revocation of exempt status, the IRS may impose penalty excise taxes on certain excess benefit transactions involving 501(c)(3) and 501(c)(4) organizations and disqualified persons. An excess benefit transaction is one in which a disqualified person or entity receives more than fair market value from the exempt organization or pays the exempt organization less than fair market value for property or services, or shares the net revenues of the tax-exempt entity. A disqualified person is a person (or an entity) who is in a position to exercise substantial influence over the affairs of the exempt organization during the five years preceding an excess benefit transaction. The statute imposes excise taxes on the disqualified person and any organization manager who knowingly participates in an excess benefit transaction. These rules do not penalize the exempt organization itself, so there would be no direct impact on the Center or the tax status of the Bonds if an excess benefit transaction were subject to IRS enforcement, pursuant to these intermediate sanctions rules.

Bond Audits. In recent years, the IRS has increased the frequency and scope of its audit and other enforcement activities regarding tax-exempt organizations and their related tax-exempt bonds. Such organizations and bonds are increasingly subject to a greater degree of scrutiny by the IRS.

The Center has not sought to obtain a private letter ruling from the IRS with respect to the Bonds, and the opinion of Stradling Yocca Carlson and Rauth, a Professional Corporation, Bond Counsel, is not binding on the IRS. There is no assurance that an IRS examination of the Bonds will not adversely affect the market value of the Bonds. See the section entitled TAX MATTERS herein.

Unrelated Business Income. In recent years, the IRS and state, county and local taxing authorities have been undertaking audits and reviews of the operations of tax-exempt organizations with respect to their exempt activities and the generation of unrelated business taxable income (UBTI). The Center may participate in activities which generate UBTI in the future. Management believes it will be able to properly account for and report UBTI, if any, generated in the future; nevertheless, an investigation or audit could lead to a challenge which could result in taxes, interest and penalties with respect to unreported UBTI and in some cases could ultimately affect the tax-exempt status of the Center as well as the exclusion from gross income for federal income tax purposes of the interest on the Bonds and other future tax-exempt debt of the Center, if any.

State Income Tax and Property Tax Exemption. Until recently, the State of California has not been as active as the IRS in scrutinizing the income tax exemption of nonprofit corporations. In California, it is possible that legislation may be proposed to strengthen the role of each state in supervising nonprofit entities. It is likely that the loss by the Center of federal tax exemption would also trigger a challenge to state tax-exemption in California. Depending on the circumstances, such event could be material and adverse.

State, county and local taxing authorities have been undertaking audits and reviews of the operations of tax- exempt corporations with respect to their real property tax exemptions. The management of the Center believes that its real property will continue to be exempt from California real property taxation.

It is not possible to predict the scope or effect of future legislative or regulatory actions with respect to taxation of nonprofit corporations. There can be no assurance that future changes in the laws and regulations of state or local governments will not materially adversely affect the financial condition of the Center by requiring payment of income, local property or other taxes.

THE INFRASTRUCTURE BANK

The California Infrastructure and Economic Development Bank is a public instrumentality of the State of California and is governed by a five-member board of directors consisting of the Director of the Governors Office of Business and Economic Development who serves as the Chairperson, the Director of the States Department of Finance, the State Treasurer and the Secretary of the State Transportation Agency, or their respective designees, and an appointee of the Governor of the State. The business and affairs of the Infrastructure Bank are managed and conducted by its Executive Director.

The Bonds are limited obligations of the Infrastructure Bank payable solely from the funds pledged therefor under the Indenture. The Infrastructure Bank makes no representations with respect to the accuracy or completeness of the statements and information set forth in this Official Statement, other than the information set forth in this section and in the subsection entitled NO LITIGATION RELATING TO THE BONDSThe Infrastructure Bank.

LEGALITY FOR INVESTMENT IN CALIFORNIA

Obligations issued by the Infrastructure Bank under the Act are, under California law, securities in which all banks, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees and other fiduciaries and all other persons whatsoever, who now are or may hereafter be authorized to invest in bonds or other obligations of the State, may properly and legally invest any funds, including capital belonging to them or within their control; and such obligations are securities which may properly and legally be deposited with and received by any state or municipal officer or agency of the State for any purpose for which the deposit of bonds or notes or other obligations of the State is now or may hereafter be authorized by law.

TAX MATTERS

In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, interest on the Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. In the further opinion of Bond Counsel, interest on the Bonds is exempt from State of California personal income tax. Bond Counsel notes that, with respect to corporations, interest on the Bonds may be included as an adjustment in the calculation of alternative minimum taxable income which may affect the alternative minimum tax liability of such corporations.

The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of the same maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by the Bond Owner will increase the Bond Owners basis in the Bond. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the owner of the Bond is excluded from the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is exempt from State of California personal income tax.

Bond Counsels opinion as to the exclusion from gross income of interest (and original issue discount) on the Bonds is based upon certain representations of fact and certifications made by the Infrastructure Bank and the Center and others and is subject to the condition that the Infrastructure Bank and the Center comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Bonds to assure that the interest (and original issue discount) on the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Infrastructure Bank and the Center have covenanted to comply with all such

14 requirements, however, the Infrastructure Banks obligation to comply with such requirements is dependent in part on the actions of the Center and is contingent upon indemnification of the Infrastructure Banks expenses therefore.

The amount by which a Bond Owners original basis for determining loss on sale or exchange in the applicable Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium, which must be amortized under Section 171 of the Code; such amortizable Bond premium reduces the Bond Owners basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bond Owner realizing a taxable gain when a Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Owner. Purchasers of the Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable Bond premium.

The IRS has initiated an expanded program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the IRS. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the Bonds to the extent that it adversely affects the exclusion from gross income of interest on the Bonds or their market value.

It is possible that subsequent to the issuance of the Bonds there might be federal, state, or local statutory changes (or judicial or regulatory interpretations of federal, state, or local law) that affect the federal, state, or local tax treatment of the Bonds or the market value of the Bonds. No assurance can be given that subsequent to the issuance of the Bonds such changes or interpretations will not occur.

Bond Counsel has relied on the opinion of Rutan & Tucker, LLP, Counsel to the Center, that the Center is an organization described in Section 501(c)(3) of the Code. Such opinion is subject to a number of qualifications and limitations. Bond Counsel has also relied upon representations of the Center regarding the use of the facilities financed with the proceeds of the Bonds in activities that are not considered unrelated trade or business activities of the Center within the meaning of Section 513 of the Code. Neither Bond Counsel nor the Centers Counsel can give or has given any opinion or assurance about the future activities of the Center, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the resulting changes in enforcement thereof by the IRS. Failure of the Center to be organized and operated in accordance with IRSs requirements for the maintenance of its status as an organization described in Section 501(c)(3) of the Code may result in interest on the Bonds being included in federal gross income, possibly from the date of the original issuance of the Bonds.

Bond Counsels opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture, the Loan Agreement, and the Tax Certificate permit certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income of interest (and original issue discount) on the Bonds for federal income tax purposes with respect to any Bond if any such action is taken or omitted based upon the advice of counsel other than Stradling Yocca Carlson & Rauth.

Although Bond Counsel has rendered an opinion that the interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes provided that the Infrastructure Bank and the Center continue to comply with certain requirements of the Code, the ownership of the Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of the Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences with respect to the Bonds.

A copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix E.

15 APPROVAL OF LEGAL PROCEEDINGS

Legal matters incident to the issuance of the Bonds are subject to the approving opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is contained in Appendix E hereto. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement. Approval of other legal matters will be passed upon for the Infrastructure Bank by its Counsel, for the Center by Rutan & Tucker, LLP, and for the Underwriters by Hawkins Delafield & Wood LLP.

NO LITIGATION RELATING TO THE BONDS

The Infrastructure Bank

To the current actual knowledge of the Infrastructure Bank, without independent investigation, there is no action, suit, proceeding, inquiry or investigation at law or in equity or before or by any court, public board or body known to the Infrastructure Bank to be pending or threatened against the Infrastructure Bank wherein an unfavorable decision, ruling or finding would adversely affect (i) the existence or organization of the Infrastructure Bank or the title to office of any member or officer of the Infrastructure Bank or any power of the Infrastructure Bank material to the issuance, sale and delivery of the Bonds, or (ii) the validity of the proceedings taken by the Infrastructure Bank for the adoption, authorization, execution, delivery and performance by the Infrastructure Bank of, or the validity or enforceability of, the Bond Purchase Contract relating to the Bonds, the Indenture or the Loan Agreement.

The Center

There is no litigation of any nature now pending or threatened against the Center, which seeks to restrain or enjoin the issuance or the sale of the Bonds or which in any way contests or affects the validity of the Bonds and proceedings of the Center taken with respect to the issuance or sale thereof, or the pledge or application of any moneys or security provided for the payment of the Bonds, the use of the Bond proceeds or the existence or powers of the Center relating to the Bonds.

UNDERWRITING

The Bonds are being purchased by the Underwriters at a purchase price of $52,877,085.55 (which represents the par amount of the Bonds, plus a net original issue premium of $11,072,460.00 and less an underwriting discount of $195,374.45. The Bond Purchase Contract for the Bonds provides that the Underwriters will purchase all of the Bonds, if any are purchased, and contains the agreements of the Borrower to indemnify the Underwriters, the Infrastructure Bank, and the Trustee against certain liabilities to the extent permitted by law. The Bond Purchase Contract for the Bonds also provides that the fees of counsel for the Underwriters will be paid by the Center.

The Underwriters intend to offer the Bonds to the public initially at the offering prices set forth on the cover page of this Official Statement, which may subsequently change without any requirement of prior notice. The Underwriters may offer and sell the Bonds to certain dealers and others at lower than the public offering prices.

Wells Fargo Securities is the trade name for certain securities-related capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, National Association, which conducts its municipal securities sales, trading and underwriting operations through the Wells Fargo Bank, NA Municipal Products Group, a separately identifiable department of Wells Fargo Bank, National Association, registered with the Securities and Exchange Commission as a municipal securities dealer pursuant to Section 15B(a) of the Securities Exchange Act of 1934.

Wells Fargo Bank, National Association, acting through its Municipal Products Group ("WFBNA"), the senior underwriter of the Bonds, has entered into an agreement (the "Distribution Agreement") with its affiliate, Wells Fargo Advisors, LLC ("WFA"), for the distribution of certain municipal securities offerings, including the Bonds. Pursuant to the Distribution Agreement, WFBNA will share a portion of its underwriting or remarketing

16 agent compensation, as applicable, with respect to the Bonds with WFA. WFBNA also utilizes the distribution capabilities of its affiliate Wells Fargo Securities, LLC (WFSLLC), for the distribution of municipal securities offerings, including the Bonds. In connection with utilizing the distribution capabilities of WFSLLC, WFBNA pays a portion of WFSLLCs expenses based on its municipal securities transactions. WFBNA, WFSLLC, and WFA are each wholly-owned subsidiaries of Wells Fargo & Company.

US Bancorp is the marketing name for U.S. Bancorp and its subsidiaries, including U.S. Bancorp Investments, Inc., which is serving as one of the underwriters for the Bonds.

CERTAIN RELATIONSHIPS

Christopher Rommel, a member of the Centers Board of Directors (the Board), is a Regional Managing Director in the Wealth Management line of business at Wells Fargo Bank, National Association and is registered with Wells Fargo Advisors, LLC (WFA). Wells Fargo Bank, National Association conducts its municipal securities sales, trading and underwriting operations through the Wells Fargo Bank, National Association Municipal Products Group and is the senior underwriter of the Bonds. Mr. Rommel participated in the Boards general discussion regarding the Bonds, but abstained from the vote to issue the Bonds. Mr. Rommel was not involved in the selection or approval of the underwriters of the Bonds, will recuse himself from any future discussion or vote regarding the Bonds or the selection or approval of the underwriters of the Bonds, and has no financial interest in any compensation that may be received by WFA in connection with this bond transaction.

Joseph Hensley, a member of the Centers Board, is the Regional President of U.S. Bank, N.A., an affiliate of U.S. Bancorp Investments, Inc., one of the Underwriters for the Bonds. Mr. Hensley participated in the Boards general discussion regarding the Bonds, but abstained from the vote to issue the Bonds. Mr. Hensley was not involved in the selection or approval of the underwriters of the Bonds and will recuse himself from any future discussion or vote regarding the Bonds or the selection or approval of the underwriters of the Bonds.

CONTINUING DISCLOSURE

The Bonds are the special, limited obligations of the Infrastructure Bank, payable solely from amounts received by the Center, and the Center has determined that no financial or operating data concerning the Infrastructure Bank is material to an evaluation of the offering of the Bonds or to any decision to purchase, hold or sell the Bonds, and the Infrastructure Bank will not provide any such information. The Center has undertaken all responsibilities for any continuing disclosure to Bondholders as described below, and the Infrastructure Bank will have no liability to the Bondholders or any other person with respect to Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities and Exchange Act of 1934.

The Center has covenanted for the benefit of the Bondholders to provide certain financial information and operating data relating to the Center and the Bonds by not later than six months after the end of the Center's fiscal year (the "Annual Report") and to provide notices of the occurrence of certain enumerated events so long as the Bonds are outstanding, as provided in the Continuing Disclosure Agreement. The Annual Report and notices of enumerated events will be filed by BLX Group LLC, as Dissemination Agent, on behalf of the Center, with the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access system. The Infrastructure Bank has not undertaken any responsibility or obligation regarding, and has no duty to enforce, the Centers continuing disclosure obligations with respect to the Bonds.

The above covenants with respect to continuing disclosure have been made in order to assist the Underwriters in complying with Rule 15c2-12. For additional information concerning disclosure, see Appendix F PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT.

RATINGS

Standard and Poors, a division of the McGraw-Hill Companies, Inc. (S&P) has assigned a rating of A- to the Bonds. Any explanation of the significance of such rating may only be obtained from S&P.

There is no assurance that the rating mentioned above will remain in effect for any given period of time or that a rating might not be lowered or withdrawn entirely if, in S&Ps judgment, circumstances so warrant. Neither the Infrastructure Bank nor the Underwriters have undertaken any responsibility to bring to the attention of the Bondholders any proposed change in or withdrawal of a rating, and none of the Infrastructure Bank, the Center or the Underwriters have undertaken any responsibility to oppose any such proposed revision or withdrawal. Any such downward change in or withdrawal of a rating might have an adverse effect on the market price of marketability of the Bonds.

FINANCIAL STATEMENTS

The audited financial statements for the year ended June 30, 2015, summarized comparative information for the year ended June 30, 2014 and independent auditors report dated October 26, 2016 of Kushner, Smith, Joanou and Gregson, LLP, independent accountants (the Auditor), are included in this Official Statement as Appendix BAUDITED FINANCIAL STATEMENTS OF THE CENTER. In connection with the inclusion of the financial statements and the report of the Auditor thereon in Appendix BAUDITED FINANCIAL STATEMENTS OF THE CENTER to this Official Statement, the Center did not request the Auditor to, and the Auditor has not undertaken to, update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to the date of its report.

FINANCIAL ADVISORS

Public Financial Management, Inc. (PFM) serves as financial advisor to the Center for debt management and other financial matters. PFM has acted as independent financial advisor to the Center with respect to the Bonds. PFM is not obligated to undertake, and has not undertaken, either to make an independent verification of or to assume responsibility for, the accuracy, completeness, or fairness of the information contained in this Official Statement and the appendices hereto. PFM is an independent financial advisory firm and is not engaged in the business of underwriting, trading or distributing securities.

MISCELLANEUOUS

All quotations from and summaries and explanations of the Act, the Indenture, the Loan Agreement, the Remarketing Agreement and of other statutes and documents contained herein do not purport to be complete, and reference is made to said documents and statutes for full and complete statements of their provisions. Copies of the Indenture, the Loan Agreement and the Remarketing Agreement may be obtained upon request directed to the Underwriters or the Center and upon payment of costs in connection therewith.

Any statements in this Official Statement involving matters of opinion are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Infrastructure Bank or the Center and any Bondholders. Appendices A and B hereto contain certain information with respect to the Center. The information contained in such Appendices has been furnished by the Center and officers and officials of the Center, and the Infrastructure Bank makes no representation or warranties whatsoever with respect to the information contained in said Appendices, or with respect to any portion of this Official Statement other than as set forth under the captions THE INFRASTRUCTURE BANK and NO LITIGATION RELATING TO THE BONDSThe Infrastructure Bank.

The execution and delivery of this Official Statement by the Chief Financial Officer and the President of the Center, respectively, have been duly authorized by the Center.

SEGERSTROM CENTER FOR THE ARTS

By: /s/ Terry W. Dwyer Terry W. Dwyer President

By: /s/ Brian Finck Brian Finck Chief Financial Officer

     APPENDIX A

SEGERSTROM CENTER FOR THE ARTS

General

Segerstrom Center for the Arts (Segerstrom Center or the Center), previously called Orange County Performing Arts Center, is Orange Countys largest not-for-profit arts organization and a nationally prominent cultural institution. The name of the Center was changed from Orange County Performing Arts Center to Segerstrom Center for the Arts in January 2011 in recognition of the generosity and leadership of the Segerstrom family.

Each season, the Center presents a broad range of programming for audiences of all ages throughout Orange County and beyond. These programs include international ballet and dance, national tours of top Broadway shows, intimate performances of jazz and cabaret, contemporary artists and theatre companies, classical music performed by renowned chamber orchestras and ensembles, family-friendly programming, free performances open to the public (including outdoor movie screenings and dances in the Arts Plaza (described below)) and many other special events.

Segerstrom Center also offers many education programs designed to inspire young people through the arts. Each year, these programs reach approximately 300,000 students of all ages with vital arts-in-education programs that enhance their studies and enrich their lives well into the future. In 2014, the Center expanded its 30-year relationship with the American Ballet Theatre by creating the American Ballet Theatre William J. Gillespie School on the Centers Campus (described below). The school offers opportunities for training and nurturing future generations of dancers and dance audiences as well as furthering the development and evolution of dance. The faculty utilizes the respected ABT National Training Curriculum. More than 200 students are currently enrolled.

Segerstrom Center serves as the artistic home to the regions major performing arts organizations: Pacific Symphony, Philharmonic Society of Orange County and Pacific Chorale. Many other professional and non-professional performing arts organizations, touring companies and community organizations also use the Centers venues and meeting facilities for their events and concerts.

The Centers performance season runs approximately one year, from September through August. In the 2014 2015 Season, the Center presented 339 public performances with attendance reaching nearly 409,000 people. Additionally, there were another 203 events and performances by other organizations with attendance reaching approximately 203,000 people. During the 2014 2015 Season, the Center produced Into the Woods Reunion, an unprecedented musical theatre event that reunited Into the Woods creator Stephen Sondheim and the original cast for a part discussion/part performance presentation. The Center also commissioned and produced Solo for Two, a dance project developed specifically to showcase Russian ballet stars Natalia Osipova and Ivan Vasiliev performing new works choreographed for them. Additionally, the Center presented the world premiere of American Ballet Theatres new production of The Sleeping Beauty, the West Coast premiere of The Eifman Ballet of St. Petersburgs Up and Down, and the return of The Phantom of the Opera in its new national tour production.

Segerstrom Center currently celebrates its 30th Season. The 2015 2016 schedule includes the following series in addition to many one-night only special engagements: International Dance, Broadway, Curtain Call, Spotlight, Cabaret, Chamber, Family and Off Center. See Programming herein.

The Center has also expanded free events at the Centers Arts Plaza. With the Alvin Ailey American Dance Theater, the Center offered a free Revelations Celebration that more than 500 people

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attended. Guests had the opportunity to perform selections from the Ailey signature work, Revelations. The Center has also held exhibitions in conjunction with local non-profit service organizations, such as the Centers Latin Jazz Weekend. Additionally, the Center hosts Movie Mondays, with full-length films projected on the side of Segerstrom Hall to audiences numbering as many as 3,000.

The Center faces little direct competition from other nonprofit arts organizations in the Orange County market. The closest competitors, especially in regard to Broadway musicals, are in Los Angeles, California and San Diego, California. However, Orange County is home to a number of outdoor venues, including Pacific Amphitheater in Costa Mesa, California (seats 8,500) and the Irvine Bowl in Laguna Beach, California (seats 2,700). Other indoor venues and theaters in Orange County include the City National Grove of Anaheim, California (seats 1,700), House of Blues in Anaheim, California (seats up to 2,000), Irvine Barclay Theatre & Cheng Hall in Irvine, California (seats 756), La Mirada Theatre for the Performing Arts in La Mirada, California (seats approximately 1,200), Soka Performing Arts Center in Aliso Viejo, California (1,000) and Musco Center for the Arts in Orange, California (1,044).

The Facilities

Segerstrom Center has a 550,000 square foot campus (the Campus) located at 600 Town Center Drive in Costa Mesa, California. Segerstrom owns all the real property on its Campus. The Segerstrom family donated the Campus land to the Center in a series of grants in 1970's and 1990's, to be used for the development of a performing arts campus. On its Campus, the Center owns and operates the 3,000-seat Segerstrom Hall and 250-seat Judy Morr Theater (previously named Founders Hall), both of which opened in 1986 and are referred to as the Original Facilities; the 2,000-seat Renée and Henry Segerstrom Concert Hall, which opened in 2006 and houses the 500-seat Samueli Theater and the Lawrence and Kristina Dodge Education Centers Studio Performance Space and Boeing Education Lab (which together are referred to as the New Facilities); and the Julianne and George Agyros Plaza, a spacious public plaza (the Arts Plaza).

Organization and Governance

The Center was incorporated as a California, nonprofit public benefit corporation in 1973 for the purpose of promoting and developing an interest in, and appreciation for arts and music. The Internal Revenue Service has determined the Center to be tax exempt under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The Center is currently governed by the Board which establishes policies, oversees implementation of such policies, provides strategic direction to the Center and carries out its fiduciary responsibilities. The Centers bylaws provide that the Board shall be comprised of not less than 23 nor more than 60 directors. There are currently 47 directors on the Board. The executive committee of the Board meets bi-monthly and has the authority to act in all matters of governance assigned by the Board except for certain matters specified in the Bylaws that are not delegated and other matters that cannot be delegated pursuant to State law. The members of the Center elect directors of the Board for terms not to exceed three years; provided, however, the Board may elect directors of the Board but, in no event, shall the number of directors elected by the Board exceed one-third of the authorized number of directors. The current Board directors are listed below, with committee memberships also noted.

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Segerstrom Center for the Arts Board of Directors

Executive Committee:

Officers John L. Ginger, Chairman of the Board Terrence W. Dwyer, President Roger T. Kirwan, Treasurer & Vice Chair, Investments Marta S. Bhathal, Secretary

Anthony A. Allen, Rick J. Muth, Member-at-Large Vice Chair, Facilities Zelma L. Allred, Mark C. Perry Member-at-Large Vice Chair, Long Range Planning Sally S. Crockett, Patricia L. Poss, Vice Chair, Support Groups Vice Chair, Resident Companies James A. Driscoll, Michael Shapiro, Vice Chair, Audit Member-at-Large David Emmes, II Alan Simon, Vice Chair, Board Development Member-at-Large Stephen T. Fry Timothy L. Strader, Co-Chair, Capital Campaign Steering Member-at-Large John C. Garrett, Thomas E. Tucker, Member-at-Large Member-at-Large Lawrence M. Higby David H. Troob, Co-Chair, Capital Campaign Steering Vice Chair, Finance Betty Huang Gaddi Vasquez, Vice Chair, Center Fund Vice Chair, Education James Mazzo Carol Wilken, Member-at-large Vice Chair, Support Groups William F. Meehan Member-at-Large

Directors (not on Executive Committee):

Wylie A. Aitken Shanaz Langson Julia A. Argyros Thomas E. Larkin, Jr. Joan Beall Leslie Leyton David E. Blackford Ethan F. Morgan Allen Boerner Chris Rommel Deborah Bridges Eve Ruffatto Sandy Segerstrom Daniels Elizabeth Segerstrom Michael Feldman Yuri Vanetik Moti Ferder William W. Wang Jackie Glass Jaynine Warner Joseph Hensley Jane Fujishige Yada

A-3 Biographies of certain directors of the Board follow:

John L. Ginger, Chairman of the Board. Mr. Ginger is a long-time supporter of the Center. He has been a member of the Centers Board since 2010, formerly serving as Vice Chair, Education. Mr. Ginger is the owner and CEO of J. Ginger Masonry, Inc. of Riverside, California. He succeeds Lawrence M. Higby and will serve a three-year term. In July 2014, Mr. Ginger co-chaired the Centers first Arts and Business Leadership Awards Dinner, an event created to recognize Orange County business leaders for their invaluable support of the arts and to underscore the importance of the private and not-for-profit sectors working together to promote healthy communities and strong economies. Mr. Ginger and his company, which he established in 1978, also support such nonprofit organizations as Pacific Symphony, Big Brothers/Big Sisters and HomeAID Orange County. He is a member of California Coast Graduates.

Roger T. Kirwan, Treasurer & Vice Chair, Investments. Mr. Kirwan was Co-Chair of the Centers Capital Campaign and was Chairman of the Board from 1999 to 2002, and currently serves as a member of the Centers Finance and Investment Committee. Mr. Kirwan founded Ganis Credit Corporation in 1980 and sold it to the Bank of Boston in 1995. He remained the companys Chief Executive Officer until May 1999. He then founded Woodside Credit, a nationwide lender to buyers of classic and collector cars. Mr. Kirwan serves on the boards of Boys Hope/Girls Hope of California and Pacific Symphony. Mr. Kirwan is also a member of the Finance Committee of both the Diocese of Orange and Our Lady Queen of Angels Church.

Martha S. Bhathal, Secretary. Mrs. Bhathal and her husband Raj founded Raj Manufacturing in 1967. The company now manufactures swimwear under its own lines and under license from brands such as ONeill, St. John, Tommy Hilfiger, Guess and private label merchandise for companies such as Lands End and L.L.Bean. The company recently sold a portion of the business to their children and to Swander Pace Capital, LLC. In addition to her commitment to the Center, including her work as co-chair of the 2008 Candlelight Concert, Mrs. Bhathal is a member of the board of trustees of Girls Inc., past vice chair and ex-officio trustee of Chapman University, former director of Bank of OC Bancorp, past member of the advisory board of Orange County High School of the Arts and past vice president of the board of trustees of Tobys House. Mrs. Bhathal is also a board member of the Centers support group, Angels of the Arts.

Betty Huang, Vice Chair, Center Fund. Mrs. Huang is also a member of the Center support group, Angels of the Arts. In 2006, she was a member of the Gala Committee for the opening of the Centers Renée and Henry Segerstrom Concert Hall and has co-chaired the Centers fundraiser, Candlelight Concert. Mrs. Huang is member of the Emeritus Board of Trustees at South Coast Repertory. Mrs. Huang has also served on gala committees for Orange Countys Pacific Symphony, Philharmonic Society of Orange County, Bowers Museum and CASA. For the Bowers, she was co-chair of Bowers Museum-Chinese Cultural and Art Council. Mrs. Huang is a board member of Women and Philanthropy at UCLA and works on fundraising for scholarship programs at Cal Tech Institute of Technology, UCLA, USC, University of Pennsylvania, Peking University and Shanghai Museum.

Management

The operation of the Center is managed by the President, who is selected by the Board. The President is responsible for the overall supervision of the Centers activities and oversees a staff of approximately 118 full-time and 522 part-time employees.

The President reports directly to the Board and its Executive Committee. The executive staff of the Center also interfaces directly with the Board through board committees and by attendance and participation in board and executive committee meetings. In addition to the executive staff, the staff A-4

structure consists of the following five departments: Programming, Development, Finance, Theater Operations & Facilities and Communication & Marketing. The following individuals comprise the Centers executive staff:

Terry W. Dwyer, President. Terry Dwyer joined Segerstrom Center for the Arts in April, 2006 as President. Mr. Dwyers career in the performing arts spans more than 30 years. Mr. Dwyer also served as Managing Director of the Alley Theatre in Houston. Prior to joining the Alley, Mr. Dwyer was Managing Director of the La Jolla Playhouse for 12 years and is credited with the successful completion of their $44 million capital campaign. Mr. Dwyer has served on numerous panels and committees, including the NEA Advancement and Dance on Tour Review Panels, San Diego Arts Commission Funding Policy Committee and the League of Resident Theaters Executive and Planning Committees. Mr. Dwyer holds a masters degree in theater administration from Yale University.

Judith ODea Morr, Executive Vice President Programming. Judith ODea Morr came to the Center from the John F. Kennedy Center for the Performing Arts in Washington, D.C. and became the Centers General Manager in May 1985. She held that position until May 1993. Following three years as an independent consultant to the Center, she returned in March 1996 as Director of Programming. From July 1996 through June 1997, Ms. Morr served as both the Director of Programming and the Interim Chief Operating Officer. In July 1997, she was appointed as the Centers first Vice President of Programming and, in 2000, the Centers first Executive Vice President. Prior to joining the Center, Ms. Morr was General Manager of the theaters for the Kennedy Center. During her ten year career there, she also served as Production and Company Manager and Manager of Theater Operations. Her extensive range of theatre experience also includes senior positions at performing arts venues in Mineola, New York and Boston, Massachusetts. She completed her undergraduate studies at Illinois College in Jacksonville, Illinois, and earned her masters degree at Simmons College in Boston, Massachusetts.

Brian L. Finck, Chief Financial Officer. Mr. Finck joined the Center in September 1995, as Controller, and was promoted to Chief Financial Officer in January 2003. Mr. Finck is responsible for the financial planning and reporting, accounting and investment management of the Center. Prior to joining the Center, Mr. Finck worked in public accounting for ten years, in local, regional and Big 4 certified public accounting firms in Australia, Europe and in the United States. A native of Melbourne, Australia, Mr. Finck received his bachelors degree in accounting from Monash University and completed his California certified public accounting requirements in 1993.

Caitlin Quinn, Vice President of Development. Ms. Quinn joined the Center in January, 2013 as Associate Vice President of Development. She was promoted to Vice President, Development in January, 2014. She is responsible for all annual contributed income, raising approximately $9.5 million each year. Prior to joining the Center, Ms. Quinn was Director of Development at Goodspeed Musicals in Connecticut. She also spent eight years at Lincoln Center as a Development Director in charge of corporate and special events fundraising. She holds a bachelor of arts degree from Long Island University and a Ph.D. A.B.D. in medieval studies from City University of New York Graduate School.

Todd Bentjen, Vice President of Marketing and Communications. As the Centers Vice President, Marketing and Communications, Mr. Bentjen is responsible for the marketing and promotion of all performances, the Centers box office operations, information technology, guest services, publications and public relations aimed at increasing overall awareness of the Center and its programs throughout the community and beyond. Mr. Bentjen joined the Center in 1997 and has been Vice President of Marketing and Communications since 1999. Mr. Bentjen began his career in arts administration with an internship at the John F. Kennedy Center for the Performing Arts in Washington, D.C. Mr. Bentjen served as Director of Marketing at Opera Pacific from 1989 to 1996, worked with Spoleto Festival USA, and has

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served as a freelance consultant to numerous arts organizations. Mr. Bentjen holds a bachelors degree in communications from Pepperdine University.

Jennifer Turner, Vice President, Theater Operations and Facilities. Ms. Turner joined the Center in April of 2013 and is responsible for operations, production and facilities. She also oversees the development and construction of two key institutional projects, the Center for Dance and Innovation and the Arts Plaza. Prior to joining the Center, she served as the Chief Operating Officer of the Auditorium Theater in Chicago, a National Historic Landmark and home of the Joffrey Ballet. Her responsibilities involved programming, historic restoration, strategic planning and general operations of this nonprofit presenting arts organization. She also held arts management positions for Shakespeare Theater Company in Washington DC, Harper College in Palatine Illinois and Michigan Opera Theater in Detroit, Michigan. Ms. Turner received her masters degree in public administration, nonprofit management from Roosevelt University and her bachelors degree in social science from Michigan State University.

Talena Mara, Vice President, Education. Ms. Mara joined the Center in November 2008 as the Vice President of Education. Prior to joining the Center she was a department chair and faculty member at The Juilliard School's Music Advancement Program. She also served as Director of Education and Audience Development for New York City Opera, where she developed a comprehensive education program to accompany City Operas tour to Japan. Ms. Mara has provided leadership for public school reform projects in conjunction with Yale University and Philadelphia Department of Education, and she served as director of educational outreach at Manhattan School of Music, where she was also a member of the conservatory's faculty. Ms. Mara holds a master of music degree in vocal performance from Louisiana State University and a bachelor of music in education and bachelor of music in vocal performance from Abilene Christian University.

Jason Holland, Vice President, Community Engagement. Mr. Holland has been in arts administration for more than 13 years. He has ten years of family programming experience as well as work-building and developing community partnerships. He also oversees the audience engagement initiatives for Segerstrom Center. Mr. Holland has served on national grant panels with the Broadway League and locally for the City of Santa Ana. He holds a bachelor of science in middle/secondary English and theater education from the University of Kansas and is currently completing a certificate course through the National Arts Strategies Executive Program for Arts and Culture Strategy.

Volunteers

The Center has a number of volunteer support groups, with a total membership of approximately 1,400. Among these groups are the following:

The Guilds of the Center. The Centers original and largest support group is The Guilds of the Center (The Guilds), which began in 1978 with the focus of developing community and financial support for the Original Facilities. The Guilds presently has seven regional Guilds comprised of 21 active adult chapters. The entire membership consists of approximately 940 men and women throughout Orange County. Each chapter is responsible for its own fundraising activities

Angels of the Arts. The Angels of the Arts was established in 1983 by the wives of the founding directors of the Center. It is a womens volunteer group consisting of 125 active and emerita members. The Angels primarily raises money for the Center through initiation gifts and the annual dues of its members.

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The Center Stars. The Center Stars is a womens group with 93 members. It raises money for the Center through the dues of its members. The focus of this group is to educate its members about the arts through a series of lectures and performance events.

Rising Leaders Council. The Rising Leaders Council of Segerstrom Center for the Arts is a group of young Orange County professionals, entrepreneurs and community advocates who recognize that the arts enhance a community in many meaningful and lasting ways. The Councils lively meetings and special events provide emerging philanthropic leaders with a unique opportunity to network with their peers while demonstrating their passion for the arts and raising funds to support Center artistic and education programs.

Founders Plus. This group of approximately 87 men and women consists of the original Founders of the Center, and they assist the Center primarily through their activities (ticket distribution and assisting various programs of our education department).

The Center Docents. The Center Docents is a service group. This group of approximately 50 members conducts public and private tours of the Center and offers its time and expertise as official hosts and hostesses for the Centers special events.

Programming

Presentations by the Center. The Centers programming is noted for its international caliber and variety. The Centers programming includes: International Dance, Broadway, Curtain Call, Cabaret, Chamber, Family, Concert Series, Off Center and many special engagements by celebrated artists and popular entertainers. The Center has hosted many ballet companies, including the Mariinsky (formerly Kirov) Ballet, Bolshoi Ballet, Paris Opera Ballet, American Ballet Theatre, New York City Ballet, Alvin Ailey American Dance Theater, The Royal Ballet, Stuttgart Ballet, Hamburg Ballet and Royal Danish Ballet. The Center also annually presents the Broadway and Curtain Call Series, which have included Tony Award-winning shows such as The Phantom of the Opera, Mamma Mia!, Jersey Boys, Disneys The Lion King, Kinky Boots, and more. The Concert Series brings classical chamber ensembles and soloists to the Center. These have included the Emerson String Quartet, St. Lawrence String Quartet, Australian Chamber Orchestra and the Academy of Ancient Music. Jazz is a mainstay of the Centers programming, shifting this past season from the traditional series to jazz-themed weekend festivals. The Cabaret Series has brought many Grammy® and Tony® Award-winning musicians and singers to the Center and its audiences, presented in both the intimate club-style ambience of Samueli Theater and the Renée and Henry Segerstrom Concert Hall. The Center has recently expanded its programming to include more non-traditional programming, offering audiences evenings with noted celebrity chef Ina Garten, Mel Brooks in his Back in the Saddle Again! movie/audience talk-back format, Lily Tomlin, Alton Brown Live: Eat Your Science, William Shatner and others. The Off Center Series continues to expand Center audiences with its independent rock bands and alternative theater productions. The Family Series offers parents and youngsters the opportunity to experience live theater, dance and music together.

For 2016, the Center has already presented Wicked, The Book of Mormon and the new Broadway production of Rodgers + Hammersteins Cinderella and plans to present Disneys Newsies, The Sound of Music and Roundabout Theatre Groups Cabaret. Much of the programming for the 2016 2017 Season celebrates the Centers 30th anniversary and includes many special productions and performances. Nine shows in the 2016 2017 Broadway and Curtain Call series are new to the Center: Beautiful The Carol King Musical, Elf The Musical, Matilda the Musical, Finding Neverland, An American in Paris, The Bodyguard, A Gentlemans Guide to Love and Murder and Fun Home and The Curious Incident of the Dog in the Night-Time. The International Dance Series will start the Centers 30th anniversary celebrations with a special Tour de Force III (the Centers third gala dance evening with world famous A-7

ballet stars performing new works), Mikhailovsky Ballet, American Ballet Theatre, Eifman Ballet of St. Petersburg, Teatro alla Scala Ballet Company and Batsheva Dance Company. Additional artists include eight-time Oscar-winning composer Alan Menken in the world premiere of his retrospective one-man show, the celebrated chamber ensemble of Philip Setzer, David Finckel, and Wu Han performing all of the Beethoven Piano Trios in one evening, Marc-André Hamelin and the Pacific Quartet performing the world premiere of Hamelins newest work and the Emerson String Quartet performing the West Coast premiere of a work by Mark-Anthony Turnage.

Presentations by Resident Companies at Center Facilities. Pacific Symphony, Philharmonic Society of Orange County and Pacific Chorale are Resident Companies of the Center and use the Centers facilities for their performances. Pacific Symphony, founded in 1978, has used the Centers facilities since 1986. It performs approximately 80 concerts annually at the Center. Philharmonic Society of Orange County, founded in 1954, conducts more than 25 performances annually at the Center and has used the Centers facilities since 1986. Pacific Chorale, founded in 1968, performs approximately 6 times a year at the Center and has used the Centers facilities since 1986.

Education and Community Engagement Programs. The Center is the largest provider of education programs of any not-for-profit arts organization on the West Coast and is one of the top five in the nation. The Education Department reaches nearly 300,000 students and young people per year through eight unique programs. The programs are utilized by all Orange County school districts as well as districts in four adjacent counties. They are designed to bring students from grammar school through the university level into contact with many different disciplines of performing arts and professional artists. Some programs reach students in their schools, campuses and community centers while others bring participants to study and perform at the Centers facilities. The Centers educational programs have been recognized by the U.S. Department of Education and the Kennedy Center.

The Centers new Community Engagement Department supports the Centers goal of connecting more comprehensively with Orange Countys diverse communities, triggering their more active engagement with the Center and expanding the Centers supporters and program participants. Among the Centers civic practice-based partnerships are Childrens Hospital of Orange County (CHOC), University of California Irvine, California State University Fullerton, Camp Pendleton, AIDS Services Foundation, Fullerton Cares Autism Coalition, El Centro Cultural de Mexico, Orange County Museum of Art, Alzheimers Association of Orange County, Big Brothers/Big Sisters and Samueli Academy.

Operating Revenues and Expenses

For the Fiscal Year ended June 30, 2015, the Center had total unrestricted program revenues of $37,870,933 and unrestricted operating expenses of $56,592,322. The Center operates at a deficit and relies on contributions from individuals, foundations and private organizations.

Program Revenues from Center Presentations. In the Fiscal Year ended June 30, 2015, the Center received a total of $29,343,236 in revenue from the Centers various presentations. This is an increase from the previous Fiscal Year ended June 30, 2014, where the Center received a total of $22,893,910 in revenue from the Centers presentations. In the 2013, 2012 and 2011 Fiscal Years, the Center received a total of $24,247,041, $25,641,440 and $24,324,785, respectively, in revenues from its presentations.

A significant percentage of the Centers Program Revenues from its presentations comes from its presentation of Broadway musicals. The following chart reflects the number of Broadway musical performances and the total amount of event ticket sales for performances in the last five years.

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Segerstrom Center for the Arts Performances and Ticket Sales (Fiscal Year 2011 through Fiscal Year 2015)

Number of Total Event Ticket Average Ticket Sales Year Performances Sales per Performance 2011 144 $17,911,209 $124,384 2012 171 18,356,410 107,347 2013 144 17,332,524 120,365 2014 123 15,773,091 128,237 2015 154 18,426,508 119,653 ______Source: The Center.

All Broadway presentations at the Center are co-presented with the Key Brand Theatrical Group, Inc. DBA Broadway Across America. The Center currently has an agreement with Key Brand Theatrical Group, Inc. regarding the presentation of Broadway musicals at the Center extending through the Centers 2021 season. This agreement is subject to possible extensions at the agreement of the Center and the Key Brand Theatrical Group, Inc.

Other Sources of Program Revenues. Other sources of Program Revenue for the Center include hall rental operations and education programs. In the Fiscal Year ended June 30, 2015, the Center received a total of $7,650,336 from rental operations, and a total of $877,361 from education programs. The results for the 2014 Fiscal Year are similar: the Center received a total of $7,157,189 from rental operations and $701,260 from education programs.

Fundraising, Contributions and other Investment Income

The Centers revenue from gate receipts for performances, facility rentals and other activities are insufficient to cover the Centers operating expenses. The Center thus relies upon the contributions from individuals, foundations and private organizations. The Center also receives funds through its endowment and investments.

Capital Campaigns. The Center has an active Development Department and has conducted several fundraising campaigns. Such campaigns include the solicitation of donations from private donors in Orange County and the surrounding areas. Most recently, in 2014, the Center established the Next Act fundraising campaign, which has a goal to raise $67.8 million for the Renée and Henry Segerstrom Concert Hall, the Arts Plaza and the Center for Dance and Innovation. See Capital Spending below. As of April 30, 2016, $37.7 million has been pledged toward the Next Act campaigns goal of $67.8 million, of which the Center has received approximately $5.8 million. Including its fundraising since 1999 for new facilities, as of April 30, 2016, $220 million has been pledged toward new facilities, and the Center has received approximately $178.4 million.

Contributions and Special Events. The Center receives contributions on an ongoing basis as part of annual fundraising activities. In the Fiscal Year ended June 30, 2015, the Center received a total of $28,140,049 from contributions and special events. This amount was comprised of $883,813 in permanently restricted contributions, $19,521,653 in temporarily restricted contributions and $7,734,583 in unrestricted contributions. The total amount received in the form of contributions and special events vary significantly year to year. In the Fiscal Year ended June 30, 2014, the Center received a total of $15,651,749 from contributions and special events; and in the Fiscal Year ended June 30, 2013, the Center received a total of $9,482,905 from contributions and special events.

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The Center receives contributions from numerous donors as part of annual fundraising activities. In the Fiscal Year ended June 30, 2015, the Center received contributions from approximately 6,316 donors. Out of the total amount contributed in the Fiscal Year ending June 30, 2015 of $28,140,049, the top ten donors, by total amount donated to the Center, in the Fiscal Year ending June 30, 2015 provided a total of $20,263,668 in contributions, and the top twenty donors in the same Fiscal Year ending June 30, 2015 provided a total of $21,302,668 in contributions. The top ten and top twenty donors thus contributed approximately 72% percent and 76% percent of total contributions for the Fiscal Year ending June 30, 2015, respectively.

Endowment and other Investment Income. In addition to contributions from donors, the Center has an endowment and other investment income. In the Fiscal Year ended June 30, 2015, the Center received a total of $2,857,019 from its endowment and other investments. $1,446,807 of this total figure is comprised of temporarily restricted funds, and $1,410,212 of this total figure is comprised of unrestricted funds.

As of June 30, 2015, the Center had $62,546,985 in its endowment. Of this total amount, $39,514,877 consisted of permanently restricted funds and $23,032,108 consisted of temporarily restricted funds. As of April 30, 2016, the Centers endowment was estimated to have a market value of $57,614,418 (unaudited).

Capital Spending

The Center has approved $12.8 million to enhance and program the Arts Plaza and the Center for Dance and Innovation over the next 18 months, funded from the Next Act campaign.

Additionally, the Center has various small scale projects, which are generally repair and replacement projects that are funded from its operating budget (the Small Projects). For the Fiscal Year ending June 30, 2016, these projects include replacing the lobby and backstage carpet in Segerstrom Hall, restroom water efficiency and security equipment and information technology upgrades in both halls. A total of $1,392,000 has been approved for the funding of the Small Projects in the Fiscal Year ending June 30, 2016. See Fundraising, Contributions and other Investment Income Capital Campaigns herein.

Financial Summaries

Set forth below in Table A-1 is the Centers audited summary statement of activities for the years ended June 30, 2011 through June 30, 2015. Set forth below in Table A-2 is the Centers audited summary statement of financial position for the years ended June 30, 2011 through June 30, 2015.

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TABLE A-1: SEGERSTROM CENTER FOR THE ARTS Summary Statement of Activities Years ended June 30, 2011 through 2015

2011 2012 2013 2014 2015 Total Total Total Total Total

Program revenues: Center presentations 24,324,785 25,641,440 24,247,041 22,893,910 29,343,236 Hall rental operations 12,738,848 6,692,032 7,332,220 7,157,189 7,650,336 Education programs 864,502 874,763 749,075 701,260 877,361

Expenses: Center presentations 29,250,673 29,796,902 28,847,814 27,641,113 33,773,533 Hall rental operations 16,483,603 9,625,147 10,906,304 10,812,631 10,773,420 Education programs 1,890,232 1,883,336 1,878,541 1,790,678 2,197,069 Bond amortization 582,048 222,547 222,547 210,587 127,006 Interest expense 4,120,206 3,169,383 3,070,479 3,189,107 3,172,589 Management and general 5,715,103 5,907,177 6,012,067 6,156,703 6,548,705

Program revenues less expenses (20,113,730) (17,396,257) (18,609,416) (19,048,460) (18,721,389)

Contributions, investment income and other expenses: Contributions and special events 14,846,525 10,310,882 9,482,905 15,651,749 28,140,049 Endowment and other investment income 14,155,751 3,404,330 7,545,007 14,255,583 2,857,019 Change in value of irrevocable deferred gifts 441,921 428,804 (141,686) 4,476,945 6,920,730 Fund-raising and special event expenses (3,039,897 ) (3,584,457) (3,546,137) (4,121,702) (3,855,249) Allowance for uncollectible contributions receivable (1,851,799 ) (883,723) (509,700) (2,153,123) 658,971

Changes in net assets 4,438,771 (7,720,421) (5,779,027) 9,060,992 16,000,131

Designated for reserves (275,000) (400,000) (300,000) -- --

Changes in net assets after utilizing funds reserves 4,163,771 (8,120,421) (6,079,027) 9,060,992 16,000,131

Net assets at beginning of year designated for reserves 275,000 400,000 300,000 -- --

Net assets at beginning of year 242,882,035 247,320,806 239,600,385 233,821,358 242,882,350

Net assets at end of year 247,320,806 239,600,385 233,821,358 242,882,350 258,882,481

Source: The Center.

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TABLE A-2: SEGERSTROM CENTER FOR THE ARTS Summary Statement of Financial Position Years ended June 30, 2011 through 2015

2011 2012 2013 2014 2015 Total Total Total Total Total

ASSETS: Cash and cash equivalents 9,208,985 9,003,913 10,435,303 11,840,919 15,783,866 Investments 174,262,309 174,943,023 175,983,817 185,526,490 184,100,669 Accounts receivable 970,075 1,728,334 2,089,508 1,150,154 1,700,326 Prepaid expenses 886,264 795,292 799,414 1,478,689 1,302,922 Contributions receivable, net 8,585,350 4,492,625 3,261,323 4,747,345 20,381,929 Beneficial interest in irrevocable deferred gifts 8,177,937 8,606,741 8,465,055 12,942,000 19,862,730 Bond issuance cost, net 623,187 448,812 226,265 316,679 189,673 Fixed assets 259,637,760 251,182,268 242,894,315 235,262,905 227,974,940

Total Assets 462,351,867 451,201,008 444,155,000 453,265,181 471,297,055

LIABILITIES AND NET ASSETS: Accounts payable and accrued liabilities 3,843,172 3,027,277 3,539,525 3,313,068 6,082,146 Current portion of bonds payable -- 2,555,000 2,685,000 1,830,000 2,600,000 Bonds payable 197,670,000 195,115,000 192,430,000 190,600,000 188,000,000 Unamortized bond premium 1,253,593 1,023,688 782,245 527,277 272,309 Deferred revenue 12,145,838 9,761,200 10,778,414 13,994,028 15,341,661 Annuity payment liability 118,458 118,458 118,458 118,458 118,458

Total liabilities 215,031,061 211,600,623 210,333,642 210,382,831 212,414,574

Net assets: Unrestricted net assets: Undesignated 171,978,003 169,816,818 161,090,960 155,464,585 149,933,347 Designated for general reserves 2,800,000 3,200,000 3,500,000 3,500,000 3,500,000 Designated for building repairs 3,381,375 4,172,910 4,496,812 4,241,724 3,365,840 Total unrestricted net assets 178,159,378 177,189,728 169,087,772 163,206,309 156,799,187

Temporarily restricted net assets 16,994,480 12,661,211 11,310,278 16,859,676 39,536,309 Board designated temporarily restricted net assets 16,256,371 13,655,556 17,079,418 24,185,301 23,032,108

Total temporarily restricted net assets 33,250,851 26,316,767 28,389,696 41,044,977 62,568,417

Permanently restricted net assets 35,910,577 36,093,890 36,343,890 38,631,064 39,514,877

Total net assets 247,320,806 239,600,385 233,821,358 242,882,350 258,882,481

Total liabilities and net assets 462,351,867 451,201,008 444,155,000 453,265,181 471,297,055 Source: The Center.

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Insurance Coverages

The Center has insurance policies in place with various insurance companies. The Centers insurance policies currently include a Property and Business Interruption Policy with a limit of $378,289,800 per each occurrence, a Commercial General Liability Policy with a limit of $1,000,000 for each occurrence and $2,000,000 in the annual aggregate, a Commercial Auto Policy with a limit of $1,000,000 for each occurrence, Liquor Liability Coverage with a limit of $1,000,000 for each occurrence and $1,000,000 in the annual aggregate, a Workers Compensation with a limit of $1,000,000 for each occurrence, an Employers Liability Insurance Policy with a limit of $1,000,000 for each occurrence and $1,000,000 in the annual aggregate as well as a Cyber Insurance Policy that has a limit of $1,000,000 for each occurrence and $1,000,000 in the aggregate. The Center carries a Directors and Officers, Employment Practices Liability Policy with a limit of $10,000,000 for each occurrence and $10,000,000 in the annual aggregate, a Crime Policy with a limit of $1,000,000 for each occurrence, a Primary Umbrella Policy with a limit of $50,000,000 for each occurrence and $50,000,000 in the annual aggregate and additional Excess Liability Insurance Policies with total limits of $10,000,000 for each occurrence and $10,000,000 in the annual aggregate. The Center does not have an earthquake policy. The Center may change its insurance coverage in the future.

Employees

The Center has a total of approximately 640 employees. Of these, 263 employees of the Center, constituting approximately 41% of the Centers employees (Union Employees), are represented by one collective bargaining organization. The Centers collective bargaining agreement with the Union Employees expires June 30, 2017. The Center expects to renew this agreement. While the Center does not expect any work stoppages by the Union Employees, the Center believes any such stoppage would have a severe impact on the Centers operations.

No Material Litigation

The Center may become involved in other litigations arising in the normal course of its operations, but it is not currently involved in any material litigation.

Retirement Plans

The Center has a defined contribution pension plan for substantially all nonunion employees. See note 8 of the audited financial statements of the Center attached hereto as Appendix B for more information.

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     APPENDIX B

AUDITED FINANCIAL STATEMENTS OF THE CENTER     

    

                  

    

    

      

              

               

            

             

  

        

    .                                  .          

 .    

                  .                                       

 .

 .                       .                               

                                                          .                                   .   .                         .            

                    

   



          .                             .        .       

    

  .                                       .                     

  

              

     

               

              

                

 .          

                  

             

                   

 .          

          

                          .                                                            .               .                                                .   .                      

      .         .    

          .      

 .          

        

       

                                  .            .      .          

              .          .     . .  .      .  

                  

                   .              

                            

.                                   .         

.                    .                  

          .    .                                .                                    .     .             .   

      .     .          .               

            

         

        

            

      .        . .       

         .            ..   .   .

    .                                          .  

                .                       .      .       .            

              .   .              .      .                                      

                          .                              .                  .  .                                              .                            .

            

         

        

          .                             .                                

                           .     .    .          .     .                  .                  .   .   .                        .        

                          .       ..        .                        .            .  

                                              .       . .          .   .  

                             

            .                    .

            

         

        

     .     .                    .                                                          .           .

                                           .           .                             .  .        .    .                .       .    

                  .                .                              

          .    .                                                 

       .        .                .    .        .               .           

            

         

        

     .           

 .                                                                          .   .        

                                       

       .                 

                        .    .         .  

                                          .     .            .   

      .            .         .                             

            

         

        

                                                      .           .                     .                                          

                                  

     

         

       

           .    .         .  

     .      .             

                  .            .                .          

            

        

                  .            .                .          

            

        

            

         

        

    

      .               .      

       

   .        .          

   .    

   

   .         .                             

   .    

            

         

        

    .          

 

                     

   

    

            .                                                        .                       .  .      .                        .    

                

        .        .      .  

     

              

      

     

         

    

           

 

                        

      

   

        .       .

     

  .               .        

            .    .           .    .

                  .                               .    .     .         .    .

       .             .       .    .

     

         

   

                                            .         .             .     .                         

                                                                             .   

           .  

           

. .    

   .                                                                            

            

         

    

           

. .    

   .                                                                          

           .   .                .        

    

               .                            .   .   .               .            .    .                 .  .

            

         

    

 .   

 .           .                .                .          

 .         .

   .                                                                                                 .                .              .                .           

     

         

    

 .               .                              .  

                .                    .  

            .                .      .                                 

.      .                                .                        .                                      

       .               .    .                              .       .  .     .              .                .      .    .              .                      .                   

            

         

     

             .  . .                                 .        .    .     .         . .                   

              .                                          .       .  .     .              .                  .  .       .           .              

                  .                        .                         .                           .                               .         .    .            .  

              .                                               .       .                        .  .         .       .              

            

         

     

                       .    

                  .       .

         .       .

      .   

                

 

    

            .     .             .  .          .  .  .        .     

              

        .    .            .       .

     

         

   

               .                  .            

            

 

           .       .

   

                             .     .          

          

 .     .        .                  .     .   . .             .       .                   

APPENDIX C

BOOK-ENTRY ONLY SYSTEM

THE INFORMATION HEREIN CONCERNING DTC AND DTCS BOOK-ENTRY SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT THE INFRASTRUCTURE BANK, THE CENTER, THE TRUSTEE AND THE UNDERWRITERS BELIEVE TO BE RELIABLE, BUT THE INFRASTRUCTURE BANK, THE CENTER, THE TRUSTEE AND THE UNDERWRITERS TAKE NO RESPONSIBILITY FOR THE ACCURACY THEREOF. THE BENEFICIAL OWNERS SHOULD CONFIRM THE FOLLOWING INFORMATION WITH DTC OR THE DTC PARTICIPANTS (AS DEFINED HEREIN).

The Depository Trust Company, New York, NY (DTC) will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities without coupons registered in the name of Cede & Co. (DTCs partnership nominee). One fully-registered Bond will be issued for each of the Bonds, each in the aggregate principal amount of such Bond, and will be deposited with DTC.

DTC, the worlds largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a banking organization within the meaning of the New York Banking Law, a member of the Federal Reserve System, a clearing corporation within the meaning of the New York Uniform Commercial Code, and a clearing agency registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTCs participants (Direct Participants) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book- entry transfers and pledges between Direct Participants accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (DTCC). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (Indirect Participants). DTC has the Standard & Poors Rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at nothing contained in such website is incorporated into this Official Statement.

Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTCs records. The ownership interest of each actual purchaser of each Bond (Beneficial Owner) is in turn to be recorded on the Direct and Indirect Participants records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of the Beneficial Owners. Beneficial Owners will not receive Bonds representing their ownership interests in the Bonds, except in the event that use of the book entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTCs partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTCs records reflect only identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. C-1

Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions and tenders, if any, defaults and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices, if any, shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTCs practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTCs Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTCs practice is to credit Direct Participants accounts, upon DTCs receipt of funds and corresponding detail information from the Center or the Trustee on payable date in accordance with their respective holdings shown on DTCs records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in street name, and will be the responsibility of such Participant and not of DTC nor its nominee, the Trustee, the Center or the Infrastructure Bank, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owner(s) will be the responsibility of Direct and Indirect Participants.

Discontinuance of Book-Entry System

DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Infrastructure Bank, the Center or the Trustee. Under such circumstances, in the event that a successor securities depository is not obtained, physical certificates are required to be printed and delivered.

The Infrastructure Bank may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, physical certificates will be printed and delivered to DTC.

The information in this section concerning DTC and DTCs book-entry system has been obtained from sources that the Center believes to be reliable, but neither the Infrastructure Bank nor the Center takes any responsibility for the accuracy thereof.

THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO ANY ACTION PREMISED ON SUCH NOTICE.

C-2

 

      

                    .                         .        



                        .                

      .                       .  

                                 .         

 .   .    .                

                               .     .        

  .        . .     . 

                   .               .          

              .            .   .                                        . .     .     

     .     

              .       .            .    .                .

   . .      .  .        .                .      .          .           



                          

            

                      .      

                           .            

 .  . .    . .  .   .                                         

   .   .                  

        .       .             

         .            .                    

        .           .                   

    .         .  .             .  .                 

         

                 .                          .            .                    .      .        .         .             

              .                           .               

        .           .     .

         .     .                 .          



        .  . . .              .                                                           .   .                             

              

      .       .          .      

     .                   .                .              .              .                              .   . .                                                    .        .  .                 .       .                   .   

   .   .     

   . .                     .   

                                

        .                        .        

          .                                                                                                  .        .            .                        . .                        .       .                    .           

            .               .        . 



.    .     .  .         .    

  .                                       .   .  .   .                   

        .              . .     .     

     .                        . .       .                                                        .

   .             .                 .  .     .             

        . 

           .                                                        .                       .                      

   .            .  .    .   .               .       .    .        . .   .                .                                            .       

     .     .          . .           

            .                 

          .        .                .       .                     .           



 .    .   .   .  

   .                         .                      .        

       .                 

          .         .      

   .  .  .  .     .                  

  

   .   .    

   

   

   

       

   

    

   

   .   

       .    

    .  .  .  .    .  .                  

    

     

     .

       .    

    



                .      .   . .   .      .   .        .     

                                                       .          .                      .          .     

   .         .  .           .   .            .    

       .      .          . . .      .               .          .            

                   .         .    

    .           . .                  .   .   .           .         .                   

       .     .         .             .                  

                                         .                        .  .

    .             .      . .              . .      .  .                .                                            .                             .          . .                                                    

               



                    

  .   .       .     . .          .         

              .          

.  .                        .               . .       .  .    .       .         .    

            .     .         .     .  .      .

 .     .    .             .     

             

          .      .               .                  

     .                      .      

    .         

                 .          

       .                       

.                      .         .     .       .                   .        .    .           .      . 

.           .   

           .                       .     .



        . .       .        .  . .    

                         .                     .         .       .       .      .   

              .       

.  .   .   .                 

          .  .              .     .           .    .        

 .                                       .    .    .  .   .                  

         .       

            

     .         . 

   .                 .        

.   .        .          

         .                                  .       .       

      .          .         .       .  .         .       .           .  .      

 .                   .    . .                                     .  .                 . 



            .           . 

   .  .                .  .            .    .    .   . .         . .  .                        

               .               .        .  .    .     .  .         .    

.       .         .                         .                          .     .               . 

.    .     

    .             

                 .      .        

                 .      .        

                 .      .        

                     .             .      .                .   .   

           .                         .      

             .                       .      

           



                 .                   

        .                  

       .                          .      

         .                     

               .      .        

                 .                   

        .                  

     

       .       .                   

                    .      

       .                          .                                               .  .         .         

    .                  .                          .         

             

                          .       

             



      .                           .  .        

          .       .          .      

                           .    . 

          .       .    

              .       .        .     

 

            

  .          .         .                        .    

  .                .                               

.    .                   . . . .   .                                               .           

     .                                            .  .         .               .     .                                .                                             .          

         .                                                                        .            . .   .     .                 .               .              .   .                   .                    .  

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                      . .                  .          . .                                 

       . .     .       .        .       . .         . .                    .    .            .  .       .             

               .    .         .                  .      .              .   .                  .  .  .     .     .    .         .    .

                                                      .   

    .     . .      .            .

    . .      .            .

         .   .    .         .               .     .       .   .                  .                      .    .      .  .      .          .            .  .             .        

  . . .  .         .                  .        .       .                    .               .      .   .                      .   .                 .  .  .              .               .    .               .    .      .   .              .              .



.      .   .  .                        .      .       .     .   . .           .         .                           .     .  .                         

      .                 .    . .               .   .        .          .                 .                 .             .               .       .                  .                .  

   .    .          .   .   

      .     .                                     .                       .       

.        .                     .                    .               .                         .    .    .     

 .     . .  .                .         .                               .    .       

  .        .  .         .  .        .  .      .           . .                                            .  .             .              .  

         .       .                                   .                              .    . 



    .  .        .   .   .      .   .      .  .        

              .                    .            .                     .                          .                       .             .                     

             .                                .                                                              .                                 

                 .      .     .                                      . .                   .           .                         .                                             .                            .        .           .       .                      .  .        .        

 .                         .                                       . . .     .                       

 

                                     .     .    .                                                                      .  .          .      .     .       .       .               .     



                                     .        .        .  .                .         .       .  .    .          .                  . .   .           

    .   .         .       

     .                 .               .                        . 

     .   .                     .  .            .         . 

          . .                     .   .                .        .      .  

     .     .       .                                                   

 .          .        .        .   .           .  .  

  .                             .       .           .     .                

  .      .              .                  .     

    

                           .                                . .                  

      .   .          .               



          .                     .  .                .                                .            .              .                    .         .     .   .      

          .          .  . .    .                                 

                  

    .  .     .    .     .

       .        .  .    .     .     .      

              

  .          .                             .  .     .                    .             .       .             

                         .                                   .         .      

      .        .              .          .                                .   .           .   .                 .  

           .                             .          .    .           .   .       .          

            .              .   .      .   . 



                         .            .                   .           .      .     .         .           . . .                    .             .         .          .           .                                       .        .                .  

    .                  .           .                      .   .   .                       .    .           .               .       .          .     .          .      

  .  .  . .  .    .                                  .           .        .            .  . .       . 

   .                                                       

                   .              .   .    .  .         

      .        .          .              .         .      .      .  .   .    .         

     .  .   

  .     .  .        .      .      .    .              .       .   .  .          .                      .                  .       .       .              .  .                                      



   .             .           .  .    .  .          .  .            .

  .               .        .       .     .                            .  .                .       .      .              .     .           .                              .  .                    .             .      . .     .                                  .  .                      .    .     .         

            .              .     

                      .  .                                                                                       .       .               .       .                     

         .     .      .   .   .      .                 .       .                              

                                .         .  . .           .                       .                                              . .         .                     .        .  .        .     .      

     .        .         . .     . .               .   .   .         .                     .   .             



                      

   .    .        .          .                                .  .                              .     

                           .        .     .             .                    .                               

             .                   

      .               .                . .                        .                       

         .    

        .        .                 

      .     .      .                  .      .                     .   . .       .           

               . . .                 .                    .           .                 

   .  .                 .   .                              .        . .       .  

                        .     .         .                            .   

                     .  .           .                     . 



        .              .              .             .                    .    .          .     .     

                              .    .         .               .         

       .      . .    .     

         .     

    .          

   . .        .                     .            .   .  

 .                     .  .           .       .            .   

   .        .                               .     .              

               .               .            .     .                   .    .                                    .     .            

      .    .      .      .           

                      .                                                       .             .                    

   .       .  . .       .       . .  .    



      .   .     .     .     .  

             .  

             .                                   

                                                      .         .    .              .         .    .                                               .                     .           

         

   .  .   .                  .   .           .  .        .                .     .                  .  .         .       .  .             .               .       .   .            .      .   .    .     

    .      

                       .       . .               

                       .    .             .          

  .      .              .      .               .       .   .                    .      .   .    .           .     .                

                 .            .  .                 .   



 .         .          . 

                   .  .                .         .  

 .               .          .     .        

                                                           .             .                 .         .        .        . .                                        .                      .       . .          .                 .                  .                  .      .         .       

     .   .      .                        .  .                        .  

            .         

                  .        .  .                                         .        .  .   .        .   . .      .       

                          .   .                .  .       .                .  

          . . .         .                            .  .        

          . . .         .     . .     



     . .        .  .        

  .       .                        .         .         .          .   .          

    .      .           

  .    .  .   

               

  .      .          .  

    .      . .                  

                 .              . .                  .                  .        .  .         .                        .          .                              .                     .                  .              . .         

                .                       .                      .      .          

                .                    .                   .       .              .      .    .         .       .   .      .      .   .                    .   .    . .                                      .  .              .             .  .                                          .    



       .          .                  .   .   .                    .             .                          .    .   .      .     

  .                          .                     .                                 .                                                 .               .                       .                                    

    .                .                 

.    .     .                 .                                . .          .       . .     .  .      

            

          .    .                    .                                                                       .                       .   .   

               .       .

 .  .        .              . 

 .  .      .     

 .    .      

     .  .                        .                  . 



           .  .         .  .       .     .            .                         .                              .                     .                                                       .       .                           .    .   .    .     

  .    .   .                                                 .   .                                    . .        .   .   .  .     .   .                       .   .   .  .  .         .   .            .        .               .  .               .  .      .                                  .                 .   .                  .                     .               .           .                     .             .  .                

      .  .        .  .  .           . .    .                  

.      .       .         . .         .        .       .   .     .     .   .  .         .                   .     .    .            .         .   .                              .    .            .               .      .    .       .  .  .                .                        



.     .              

                           .                 .     .           .                                              

   .             .       . .                   .           

             .                          .               .             

  

              .                                              .            .              

.  .    .

            .      .         .     . .             .      .                     .      .           .                .     .                   .           .        . .   

 .  .              .          .     .      .   .        .     .        .                          .      .          .             .         .    .  .                 .     .           .  .      .           .      . .  .   .  

         



             .    .      .          .    .       .      

                   . .   .         .  .    .   

  .            .  .             .     

     .      .            .   .  

      . .                        .       . .       .          . .  .   .       .                       .                  .                      .                  .  .        .            .  .            

                                .

          .     .   .                         

                          .      .   .                .      .                                   .    .    .       .  .      . .  .   .                 .                   .              .       .           .         .       .         .   .  .                  .    .    .    .    .  .      . 

     .      .   



  .  .      .        .       .               

    .  .  .             .          .          .        . .      .      .   .  .  .    . .  

.  .       .             .  .            .              .              .  .   .    .                .    .  .      .                     .        .              .     .        .                    .   . .                   

                                              .   .  .    .               .

          .  .                         .   .                            . .  .                  .     .                      .      .       .           . .                                                .        .     .                 .         .                   .        .             .       . . .             

      

               .                   .                                 .                                        .       .                 .                 .            



        .    .                                   .                                                                         .                                    .           .   . . .          .  .             .         .  .     

        .                    . .                      .         

 .          .  .           .                                  

           .   .           .                

         . .  .            .    .                          

 .                           .                   

     .  .  .                   .  .        

                    . .                 .         

                                               

                              .           .  . .       .   

      .       .                    



 .          .               .     

              .                                   

       .   .  .                                     .                                               .  .       .          .   .           .      .          .                              

      .       .  .      .              

    .                              . . .                        .             

     .                        .     .           .                       .             .           . .       

                       .           .  .        .    .       .          .           .  . .  .     .   .                  . .         .             . .                 .              .            .   .                    .    .  .    .         

               .      .           

 

         .      .                                       .    



     .                .           .              

          .  .       .              .     .                               .   .                    .      .        .                   .                      .                .        .     . .  .                      .                                    .  .      .          .           .                .                                              .           

  .                         .                                   . . .     .                         

            .            .         .               .              .     



    .                        .          .  .                     .       .  .  . 

            .   .                                       

              .     

                   .        



   .                  

  .    .      .           

       .   .     .  .  

  .    .  .        .    .                      .        .       

         .                     .            .  .              .                                          .                    .      

               .  .    .                      .    .   .      .         .                       .            .    .     .          . .        . .  .   .       .      .          .   .               .           . 

          

                         .          .              . .     .              .     .               .              .         .   . .                          .            .      .                      .                        .        .                     .  .            

    .              



      .                 .       . .                          .                        .   .

       .     .            .               

       .      .      .  .  .        .                         .                           .              .  .    .   .                         

                 .   .           .   .      .   .                       .                   .                            .     .         .           . . .                    .             .         .          .           .                                   .        .     

                          .      .           .              .                                    .     .   .             .    

       .           .   .               . .         .             .            .                              .               .  .                         .      . .   . .    .                          .   .      .        .      .    .                 .        



  . .            .               . .          .             .                  .                 .       .        .        .         .        .  .

 .   .                     .   .      .  .          .  .              .  .   .     .      .    .               .     .           .                . .           .   .       .  .                                   .                                  .                .                   

    .      .           .      .                         .   

.    . . .                               .      .    .      .        .  .     .        .       

  . .         .  .  .            .            .                 . .                    .           

  .      .                                                 .                 .      .             .          .             .        .            .                      

    .   .              .                          .                 .      . 



          .               .        .    .   

    .      .  .                   .     . .         .       .    .         .            .      

 .   .                 .  .                  .         .         .             .       .       .    .               . 

 .        .    .           .          .        .          .    .  .  .          .       .                         .        .                     .   .                 .  .  .     .         .    .         .    .     .        .        .        .  .  . .     

               .  .      .  .  .                           .             .            .               . .             .            . .     .           . .  .                  .  .  .      

             .                          .                  .          

                                                 .                  .       .    .             .   

                                .        



 . .                       .  . .                      .                         .            



 

      

  

       

                

  

     .          .                                                                                 .                                                         .                        

                                                                                                                                                                                     .                 .        

  .                                                                 .                                                        .       

      .                                .  .  .       



                                                            .                          

                     

     .    

     .    .                     .       .          .            .                                                                                   .    

             . .                         .                                .                     . .              

      .     .           

           .                                                          . .         .                                                                           .       .                                          .                 .        

                                         .               .      .   

   .                 .       .  .                                                        



    .              .                                            

             .          

         .                         .      .                            .                                         .  

        .                .  .     .   .                     .   .            .                          .                               . .    . .    .                                                 .   .                   .        .       .      .                 .  .               .  . .    .   .                      

. 



     APPENDIX F

PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT

This Continuing Disclosure Agreement (the Disclosure Agreement), dated as of June 1, 2016, is executed and delivered by Segerstrom Center for the Arts (the Corporation) and BLX Group LLC, as Dissemination Agent (the Dissemination Agent) in connection with the issuance of California Infrastructure and Economic Development Bank Revenue Refunding Bonds (Segerstrom Center for the Arts), Series 2016 (the Bonds). The Bonds are being issued pursuant to an Indenture dated as of June 1, 2016 (the Indenture), between the California Infrastructure and Economic Development Bank (the Authority) and MUFG Union Bank, N.A., a national banking association, as Trustee (the Trustee). The proceeds of the Bonds are being loaned by the Authority to the Corporation pursuant to a Loan Agreement dated as of June 1, 2016, between the Authority and the Corporation (the Loan Agreement). Pursuant to Section 11.12 of the Indenture and Section 5.10 of the Loan Agreement, the Corporation and the Dissemination Agent covenant and agree as follows:

SECTION I. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the Corporation and the Dissemination Agent for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule (defined below). The Corporation and the Dissemination Agent acknowledge that the Authority has undertaken no responsibility with respect to any reports, notices or disclosures provided or required under this Agreement, and has no liability to any person, including any Holder or Beneficial Owner of the Bonds, with respect to the Rule.

SECTION II. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

Annual Report shall mean any Annual Report provided by the Corporation pursuant to, and as described in, Sections III. and IV. of this Disclosure Agreement.

Beneficial Owner shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.

Disclosure Representative shall mean the person designated by the Corporation on the signature page hereof or such persons designee, or such other person as the Corporation shall designate in writing to the Dissemination Agent from time to time.

Dissemination Agent shall mean BLX Group LLC, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Corporation and which has filed with the Corporation a written acceptance of such designation.

Listed Events shall mean any of the events listed in Section V.A. and Section V.B. of this Disclosure Agreement. F-1 MSRB shall mean the Municipal Securities Rulemaking Board or any other entity designated or authorized by the SEC to receive reports pursuant to the Rule. Until otherwise designated by the MSRB or the SEC, filings with the MSRB are to be made through the Electronic Municipal Market Access (EMMA) website of the MSRB, currently located at

Participating Underwriter shall mean any of the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds.

Rule shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.

State shall mean the State of California.

SECTION III. Provision of Annual Reports.

A. The Corporation shall, or, upon written direction, shall cause the Dissemination Agent to, not later than six calendar months after the end of the Corporations fiscal year (presently as indicated on the signature page hereof), commencing with the report for the 2015- 2016 Fiscal Year, provide to the MSRB an Annual Report which is consistent with the requirements of Section IV. of this Disclosure Agreement. The Annual Report may cross- reference other information as provided in Section IV. of this Disclosure Agreement; provided that the audited financial statements of the Corporation may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Corporations fiscal year changes, it shall give notice of such change in a filing with the MSRB. The Annual Report shall be submitted on a standard form in use by industry participants or other appropriate form and shall identify the Bonds by name and CUSIP number.

B. Not later than fifteen (15) Business Days prior to the date specified in subsection A., the Corporation shall provide the Annual Report to the Dissemination Agent.

C. If the Dissemination Agent is unable to verify that an Annual Report has been provided to the MSRB by the date required in subsection A, the Dissemination Agent shall, in a timely manner, send or cause to be sent to the MSRB a notice in substantially the form attached as Exhibit A.

D. The Dissemination Agent shall file a report with the Corporation and the Authority certifying that the Annual Report has been provided pursuant to this Disclosure Agreement and stating the date it was provided.

SECTION IV. Content of Annual Reports. The Corporations Annual Report shall contain or include by reference the following:

A. The audited financial statements of the Corporation for the prior fiscal year, prepared in accordance with generally accepted accounting principles as promulgated from time to time by the Financial Accounting Standards Board. If the Corporations audited financial F-2 statements are not available by the time the Annual Report is required to be filed pursuant to Section III.A., the Annual Report shall contain unaudited financial statements in a format similar to the financial statements required for the fiscal year being audited, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.

B. The completed form attached hereto as Exhibit B or such other form which contains substantially the same information.

Any or all of the items listed above may be set forth in one or a set of documents or may be included by specific reference to other documents, including official statements of debt issues with respect to which the Corporation is an obligated person (as defined by the Rule), which have been made available to the public on the MSRBs website. The Corporation shall clearly identify each such other document so included by reference.

SECTION V. Reporting of Significant Events.

A. Pursuant to the provisions of this Section V., the Corporation shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds not later than ten business days after the occurrence of the event:

1. Principal and interest payment delinquencies;

2. Unscheduled draws on debt service reserves reflecting financial difficulties;

3. Unscheduled draws on credit enhancements reflecting financial difficulties;

4. Substitution of credit or liquidity providers, or their failure to perform;

5. Issuance by the Internal Revenue Service of proposed or final determination of taxability or of a Notice of Proposed Issue (IRS Form 5701 TEB);

6. Tender offers;

7. Defeasances;

8. Rating changes; or

9. Bankruptcy, insolvency, receivership or similar event of the obligated person.

Note: for the purposes of the event identified in subparagraph (9), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority F-3 having supervision or jurisdiction over substantially all of the assets or business of the obligated person.

B. The Corporation shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material, not later than ten business days after the occurrence of the event:

1. Unless described in paragraph 5(A)(5), adverse tax opinions or other material notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds;

2. Modifications to rights of Bond holders;

3. Optional, unscheduled or contingent Bond calls;

4. Release, substitution, or sale of property securing repayment of the Bonds;

5. Non-payment related defaults;

6. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms; or

7. Appointment of a successor or additional trustee or the change of name of a trustee.

C. If the Corporation learns of the occurrence of a Listed Event described in Section 5(A), or determines that knowledge of a Listed Event described in Section 5(B) would be material under applicable federal securities laws, the Corporation shall within ten business days of occurrence file a notice of such occurrence with the MSRB. Notwithstanding the foregoing, notice of the Listed Event described in subsections (A)(7) or (B)(3) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Indenture.

SECTION VI. Format for Flings with MSRB. Any report or filing with the MSRB pursuant to this Disclosure Agreement must be submitted in electronic format, accompanied by such identifying information as is prescribed by the MSRB.

SECTION VII. Termination of Reporting Obligation. The Corporations and the Dissemination Agents obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If the Corporations obligations under the Loan Agreement are assumed in full by some other entity, such person shall be responsible for compliance with this Disclosure Agreement in the same manner as if it were the Corporation and the original Corporation shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Bonds, the Corporation shall give notice of such termination or substitution in a filing with the MSRB. F-4 SECTION VIII. Dissemination Agent. The Corporation may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Corporation pursuant to this Disclosure Agreement. If at any time there is not any other designated Dissemination Agent, the Corporation shall be the Dissemination Agent. The Dissemination Agent may resign by providing thirty days written notice to the Corporation.

SECTION IX. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Corporation and the Dissemination Agent may amend this Disclosure Agreement (and the Dissemination Agent shall agree to any amendment so requested by the Corporation provided, the Dissemination Agent shall not be obligated to enter into any such amendment that modifies or increases its duties or obligations hereunder) and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied:

A. If the amendment or waiver relates to the provisions of Sections III.A, IV. or V.A., it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted;

B. The undertaking herein, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and

C. The amendment or waiver either (i) is approved by the Holders of the Bonds in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds.

In the event of any amendment or waiver of a provision of this Disclosure Agreement, the Corporation shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Corporation. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in a filing with the MSRB., and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.

SECTION X. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Corporation from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice required to be filed pursuant to this Disclosure Agreement, in addition to that which is required by this Disclosure Agreement. F-5 If the Corporation chooses to include any information in any Annual Report or notice in addition to that which is specifically required by this Disclosure Agreement, the Corporation shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event or any other event required to be reported.

SECTION XI. Default. In the event of a failure of the Corporation or the Dissemination Agent to comply with any provision of this Disclosure Agreement, any Holder or Beneficial Owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Corporation or the Dissemination Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture or the Loan Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the Corporation or the Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel performance.

SECTION XII. Duties, Immunities and Liabilities of the Dissemination Agent. Article VIII of the Indenture is hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Indenture and Dissemination Agent shall be entitled to the provisions thereof. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the Corporation agrees to indemnify and save the Dissemination Agent, their officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities, costs and expenses (including attorney's fees) due to the Dissemination Agents fraud, violation of law, whether willful or negligent, negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the Corporation for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent and the Trustee shall have no duty or obligation to review any information provided to them hereunder and shall not be deemed to be acting in any fiduciary capacity for the Corporation, the Bondholders, or any other party. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the Corporation in a timely manner and in a form suitable for filing. The obligations of the Corporation under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

SECTION XIII. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows:

F-6 To the Corporation: Segerstrom Center for the Arts 600 Town Center Drive Costa Mesa, California 92626

To the Dissemination Agent: BLX Group LLC 777 South Figueroa Street, Suite 3200 Los Angeles, California 90017

Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent.

SECTION XIV. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Authority, the Corporation, the Dissemination Agent, the Participating Underwriter, and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.

[Remainder of Page Intentionally Left Blank]

F-7 SECTION XV. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SEGERSTROM CENTER FOR THE ARTS, as Corporation

By: Terry W. Dwyer President

By: Brian Finck Chief Financial Officer

BLX GROUP LLC, as Dissemination Agent

By: ______Authorized Officer

F-8 EXHIBIT A

NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT

Name of Authority: California Infrastructure and Economic Development Bank

Name of Bond Issue: $______California Infrastructure and Economic Development Bank Revenue Refunding Bonds (Segerstrom Center for the Arts) Series 2016

Name of Corporation: Segerstrom Center for the Arts

Date of Issuance: June __, 2016

NOTICE IS HEREBY GIVEN that the Corporation has not provided an Annual Report with respect to the above-named Bonds as required by Section 11.12 of the Indenture dated as of June 1, 2016 between the Authority and Trustee and by Section 5.10 of the Loan Agreement dated as of June 1, 2016 between the Authority and the Corporation. [The Corporation anticipates that the Annual Report will be filed by ______.]

Dated:

BLX GROUP LLC, as Dissemination Agent cc: Corporation

F-9 EXHIBT B

SEGERSTROM CENTER FOR THE ARTS CONTINUING DISCLOSURE ANNUAL REPORT

Operating Data

Non-Financial

Please answer each of the following questions:

a) Has there been a change in the name and titles of officers since the last annual report? (Check one)

Yes No. If yes, please indicate name and title.

b) Please describe any new material litigation, or a material result in a material litigation since the date of the last report.

c) Please describe any significant sale, destruction or loss of real property or other material assets since the date of the last report. In addition, please describe any sale or loss of any collateral since the date of the last report.

Please update the following information for the most recent or fiscal year. Only the data for the most recent fiscal year needs to be included in your annual report:

Financial

a) Please attach a copy of your most recent financial statements. b) Please update the information in the table titled Segerstrom Center for the Arts Performances and Ticket Sales (Fiscal Year 2011 through Fiscal Year 2015) in APPENDIX A SEGERSTROM CENTER FOR THE ARTS after the most recently completed fiscal year. c) Please attach a copy of the financial covenant calculations for the most recent fiscal year provided to the direct purchasers pursuant to the Continuing Covenants Agreements with respect to the California Infrastructure and Economic Development Bank Variable Rate Demand Revenue Bonds (Orange County Performing Arts Center) Series 2008, so long as such obligation is still outstanding.

F-10          

CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK • REVENUE REFUNDING BONDS (SEGERSTROM CENTER FOR TIIE ARTS) SERIES 2016

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