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³2WKHU$VVLVWDQFH´ &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG'HIHU([DPLQDWLRQRI&HUWDLQ3URJUDPV &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG0DNHD)LQGLQJRQWKH16$V &RPPHQW :KHWKHUWKH'HSDUWPHQW&RUUHFWO\'HWHUPLQHGLI&HUWDLQ3URJUDPVDUH6SHFLILF &RPPHQW :KHWKHUWKH'HSDUWPHQW(UURQHRXVO\$SSOLHGLWV$WWULEXWLRQ5HJXODWLRQV &RPPHQW:KHWKHUWKH'HSDUWPHQW6KRXOG5HO\RQ([SHUW5HSRUWV *HQHUDO6WXPSDJH,VVXHV &RPPHQW:KHWKHUWKH3URYLVLRQRI6WXPSDJH5LJKWV,VD)LQDQFLDO&RQWULEXWLRQ &RPPHQW:KHWKHU(YLGHQFH(VWDEOLVKHV1R0DUNHW'LVWRUWLRQDQG7LHU2QH%HQFKPDUNV 6KRXOG%H$SSOLHG &RPPHQW:KHWKHUWKH'HSDUWPHQW0XVW&RPSDUH$YHUDJH%HQFKPDUN3ULFHVWR$YHUDJH 7UDQVDFWLRQ3ULFHV &RPPHQW:KHWKHUWKH'HSDUWPHQW0XVW&RQGXFWD3DVV7KURXJK$QDO\VLV &RPPHQW:KHWKHUWKH1HW%HQHILW&DOFXODWLRQIRU6WXPSDJHIRU/7$5LV&RUUHFW $OEHUWD6WXPSDJH,VVXHV &RPPHQW %HQFKPDUNLQJ$OEHUWD &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG8VHD86/RJ%HQFKPDUNWR&RPSDUH 5HVSRQGHQWV¶$OEHUWD6WXPSDJH3XUFKDVHV %ULWLVK&ROXPELD6WXPSDJH,VVXHV &RPPHQW :KHWKHU&URZQ$XFWLRQVLQ%ULWLVK&ROXPELD*HQHUDWH9DOLG0DUNHW3ULFHV &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG8VH&RQYHUVLRQ)DFWRUVIURPWKH%&'XDO6FDOH 6WXG\ &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG5HO\RQ/RJ3ULFHVIURP)RUHVW0DUNHW,QVWHDG RI:'153ULFHVDVD%HQFKPDUNWR&RPSDUH5HVSRQGHQWV¶%&6WXPSDJH 3XUFKDVHV &RPPHQW :KHWKHU8631:/RJ3ULFHV6KRXOG1RW%H8VHGDVD%HQFKPDUN%HFDXVH 7KH\'R1RW5HIOHFW3UHYDLOLQJ0DUNHW&RQGLWLRQVLQ%ULWLVK&ROXPELD &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG8VHD7LPEHUPDUN6SHFLILF$QQXDO$YHUDJH 6WXPSDJH3ULFH &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG&RQVLGHU%&6WXPSDJH3ULFHVRQD³6WDQGDVD :KROH´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¶V3ULYDWH0DUNHW,V'LVWRUWHGDQG:KHWKHU2QWDULR¶V3ULYDWH 3ULFHV$UHDQ$SSURSULDWH%HQFKPDUN &RPPHQW :KHWKHUWKH2QWDULR/RJ%HQFKPDUN5HOLHGRQE\WKH'HSDUWPHQWLQLumber IV :RXOG'HPRQVWUDWHWKDW2QWDULR&URZQ7LPEHULV1RW6XEVLGL]HG &RPPHQW :KHWKHU6WXPSDJH&KDUJHV'LVWRUW2QWDULR¶V'RPHVWLF/RJ0DUNHWDQG :KHWKHUD/RJ3ULFH%HQFKPDUN6KRZV1R6XEVLG\ &RPPHQW :KHWKHUWR(VWLPDWH2QWDULR¶V&URZQ7LPEHU3ULFHVZLWK4XpEHF¶V 7UDQVSRVLWLRQ(TXDWLRQ 4XpEHF6WXPSDJH,VVXHV &RPPHQW :KHWKHUWKH4XpEHF6WXPSDJH0DUNHW,V'LVWRUWHG &RPPHQW :KHWKHUWKH'HSDUWPHQW0DGHD&OHULFDO(UURULQ,WV&DOFXODWLRQRIWKH4XpEHF 6WXPSDJH%HQHILW7KDW,W6KRXOG&RUUHFWLQ,WV)LQDO'HWHUPLQDWLRQ &RPPHQW :KHWKHU5HVROXWH3D\V&RPSHWLWLYH3ULFHVIRU,WV3XUFKDVHVRI1RQ76*RU 1RQ7HQXUHG7LPEHU &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG$FFRXQWIRUWKH3UHPLXPV5HVROXWH3D\V2YHU $XFWLRQ3ULFHVLQ4XpEHF 1RYD6FRWLD%HQFKPDUN,VVXHV &RPPHQW :KHWKHU163ULYDWH6WXPSDJH3ULFHV&DQ6HUYHDVD7LHU2QH%HQFKPDUN &RPPHQW :KHWKHUWKH1RYD6FRWLD%HQFKPDUN,V&RPSDUDEOHWRWKH3URYLQFHVDW,VVXH &RPPHQW :KHWKHU1RYD6FRWLD¶V3ULYDWH6WXPSDJH6XUYH\'DWD$UH)ODZHG &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG0DNH$GMXVWPHQWVWRWKH1RYD6FRWLD %HQFKPDUN &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG0DNH$GMXVWPHQWVWR6WXPSDJH5DWHVLQ $OEHUWD2QWDULR4XpEHFDQG1HZ%UXQVZLFN /RJ([SRUW5HVWUDLQW,VVXHV &RPPHQW :KHWKHUWKH/RJ([SRUW5HVWUDLQWLQ%ULWLVK&ROXPELD5HVWUDLQV/RJ([SRUWV &RPPHQW :KHWKHU/RJ([SRUW5HVWUDLQWV,PSDFWWKH%ULWLVK&ROXPELD,QWHULRU &RPPHQW :KHWKHUWKH/RJ([SRUW3URFHVVLQ%ULWLVK&ROXPELDLVD)LQDQFLDO&RQWULEXWLRQ &RPPHQW :KHWKHUWKH&RQVWUXFWHG%HQFKPDUNIRU/RJ([SRUW5HVWUDLQWVLQWKH Preliminary DeterminationZDV&RUUHFW 3XUFKDVHRI*RRGVIRU07$5,VVXHV &RPPHQW :KHWKHU(OHFWULFLW\LVD6HUYLFHDQG7KHUHIRUH:KHWKHUWKH3XUFKDVHRI (OHFWULFLW\E\%&+\GURLVD)LQDQFLDO&RQWULEXWLRQ &RPPHQW :KHWKHU%&+\GUR¶V3XUFKDVHRI(OHFWULFLW\LV7LHGWR(OHFWULFLW\ &RPPHQW :KHWKHU%&+\GUR¶V(3$3URJUDPLV6SHFLILF &RPPHQW :KLFK%HQFKPDUN6KRXOGWKH'HSDUWPHQW8VHIRUWKH3XUFKDVHRI(OHFWULFLW\ IRU07$5E\%&+\GUR &RPPHQW :KHWKHUWKH*24¶V3XUFKDVHRI(OHFWULFLW\,V6SHFLILF &RPPHQW :KHWKHU5HVROXWH¶V(OHFWULFLW\6DOHV$UH7LHGWR1RQ6XEMHFW0HUFKDQGLVH &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG8VHWKH,QGXVWULDO/5DWHDVWKH%HQFKPDUNIRU WKH*24¶V3XUFKDVHRI(OHFWULFLW\8QGHU3$( &RPPHQW :KHWKHUWKH,QGXVWULDO/5DWH%HQFKPDUN:DV,PSURSHUO\&DOFXODWHG *UDQW3URJUDP,VVXHV &RPPHQW :KHWKHUWKH&DQDGD1HZ%UXQVZLFN-RE*UDQW3URJUDPLV5HJLRQDOO\6SHFLILF &RPPHQW:KHWKHUWKH$OEHUWD%LRHQHUJ\3URGXFHU&UHGLW3URJUDPLV&RXQWHUYDLODEOH &RPPHQW :KHWKHUWKH'HSDUWPHQW,QFRUUHFWO\$QDO\]HGWKH%&+\GUR3RZHU6PDUW/RDG &XUWDLOPHQW3URJUDP &RPPHQW :KHWKHUWKH'HSDUWPHQW&RUUHFWO\)RXQG7KDWWKH7KUHH%&+\GUR3RZHU6PDUW 3URJUDPV&RXQWHUYDLOHGLQWKHPreliminary Determination $UHDe Jure6SHFLILF &RPPHQW :KHWKHU%HQHILWV8QGHUWKH/RDG'LVSODFHPHQW&RPSRQHQWRIWKH%&+\GUR 3RZHU6PDUW,QFHQWLYHV6XESURJUDP:HUH7LHGWR1RQ6XEMHFW0HUFKDQGLVH &RPPHQW :KHWKHUWKH*1%¶V5HLPEXUVHPHQWRI6LOYLFXOWXUHDQG/LFHQVH0DQDJHPHQW ([SHQVHVLV&RXQWHUYDLODEOH &RPPHQW :KHWKHUWKH1HZ%UXQVZLFN:RUNIRUFH([SDQVLRQ3URJUDPDQGWKH1HZ %UXQVZLFN<RXWK(PSOR\PHQW)XQG$UHDe Facto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reliminary Determination 3URYLGHV&RXQWHUYDLODEOH6XEVLGLHV &RPPHQW :KHWKHUWKH*1%¶V*DVROLQHDQG)XHO7D[([HPSWLRQVDQG5HIXQG3URJUDP 3URYLGHVD)LQDQFLDO&RQWULEXWLRQDQG,V6SHFLILF &RPPHQW :KHWKHU/,5(33&RQVWLWXWHVD)LQDQFLDO&RQWULEXWLRQDQG&RQIHUVD%HQHILWRQ ,UYLQJ&RPSDQLHV &RPPHQW :KHWKHU/,5(33LV7LHGWR1RQ6XEMHFW0HUFKDQGLVH &RPPHQW :KHWKHU&UHGLWVIRU5RDG&RQVWUXFWLRQ$UHD&RXQWHUYDLODEOH6XEVLG\ &RPPHQW :KHWKHUWKH%HQHILWRIWKH4XpEHF3ULYDWH)RUHVW7D[,QFHQWLYH:DV2YHUVWDWHG &RPPHQW :KHWKHUWKH0 3,7&DQG0,7&DUHDe Jure 6SHFLILF &RPSDQ\6SHFLILF,VVXHV &RPPHQW :KHWKHUWR,QFOXGH.HQW%XLOGLQJ6XSSOLHV'LYLVLRQ¶V6DOHVLQ-',/¶V 'HQRPLQDWRU &RPPHQW :KHWKHUWKH'HSDUWPHQW,QWHQGHGWR$GGUHVVWKH$,)3URJUDP5DWKHUWKDQWKH %XVLQHVV'HYHORSPHQW3URJUDPLQLWVPreliminary Determination &RPPHQW :KHWKHUWR,QFOXGH6DOHVRI'RZQVWUHDP3URGXFWVE\-',/¶V&URVV2ZQHG &RPSDQLHV &RPPHQW :KHWKHUWR&RQWLQXHWR)LQG3URJUDPV1RW8VHGRU1RW0HDVXUDEOHIRU5HVROXWH &RPPHQW :KHWKHUWKH'HSDUWPHQW:DV&RUUHFWWR1RW&RXQWHUYDLO&HUWDLQ2QWDULR 3URJUDPV &RPPHQW :KHWKHU'LVFUHSDQFLHV,GHQWLILHGDW5HVROXWH¶V9HULILFDWLRQ6KRXOG%H&RUUHFWHG &RPPHQW :KHWKHUWKH'HSDUWPHQW:DV&RUUHFWWR1RW&RXQWHUYDLO&HUWDLQ4XpEHF 3URJUDPV &RPPHQW :KHWKHUWKH'HSDUWPHQW6KRXOG8VH7RONR¶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¶V/HQJWK &RPPHQW:KHWKHU&RXQWHUYDLOLQJ'XWLHV6KRXOG2QO\%H$SSOLFDEOHRQD)LUVW0LOO%DVLV &RPPHQW:KHWKHUWKH'HSDUWPHQW6KRXOG([FOXGH6RIWZRRG/XPEHU3URGXFWVIURP1HZ