Creative Media & Community Trust Corporation — Annual Report 2020

Mar 17, 2021

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ম OF 1934

For the fiscal year ended December 31, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-13610

CIM COMMERCIAL TRUST CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

75-6446078

(I.R.S. Employer Identification No.)

75252

(Zip Code)

Maryland
----------

(State or Other Jurisdiction of Incorporation or Organization) 17950 Preston Road, Suite 600, (Address of Principal Executive Offices)

(972) 349-3200

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Common Stock, \$0.001 Par Value	CMCT	Nasdaq Global Market
Common Stock, \$0.001 Par Value	CMCT-L	Tel Aviv Stock Exchange
Series L Preferred Stock, \$0.001 Par Value	CMCTP	Nasdaq Global Market
Series L Preferred Stock, \$0.001 Par Value	CMCTP	Tel Aviv Stock Exchange
(Title of each class)	(Trading symbol)	(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes □ No 图

Indicate by check mark if the registrant is not required to file reports pursuant to Section 15(d) of the Act. Yes □ No ሬ Indicate by check mark whether the registrant (1) has filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

such filing requirements for the past 90 days. Yes 图 No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (8232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes 网 No □

Indicate by check mark whether the registrant is a large accelerated filer, anon-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer □	Accelerated filer 区	Non-accelerated filer
Smaller reporting company 区	Emerging growth company _

If an emerging growth company, indicate by check if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a renort on and attestation to its management of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public acounting firm that prepared or issued its audit report.

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act.) Yes □ No 图

As of June 30, 2020, the aggregate market value of the voting common stock held by non-affiliates of the registrant, computed by reference to the average high and low sales prices on the Nasdaq Global Market as of the close of business on June 30, 2020, was approximately \$126.5 million. The registrant does not have any nonvoting common equities.

As of March 11, 2021, the registrant had outstanding 14,827,410 shares of common stock, par value \$0.001 per share.

Documents Incorporated by Reference

Part III of this Annual Report on Form 10-K incorporates by reference specified portions of CIM Commercial Trust Corporation's Proxy Statement for its 2021 Amual Meeting of Stockholders will be filed with the Securites and Exchange Commission no later than April 30, 2021.

CIM COMMERCIAL TRUST CORPORATION 2020 ANNUAL REPORT ON FORM 10-K

		Page
	PART I
ltem l.	Business	2
Item 1 A.	Risk Factors	10
Item 1B.	Unresolved Staff Comments	તર
Item 2.	Properties	તર
Item 3.	Legal Proceedings	49
Item 4.	Mine Safety Disclosures	49
	PART II
ltem 5.	Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	50
ltem 6.	Selected Financial Data	રી
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	ર્ડ I
	Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 8.	Financial Statements and Supplementary Data
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	66
Item 9A.	Controls and Procedures	66
Item 9B.	Other Information	68
	PART III
ltem 10.	Directors, Executive Officers and Corporate Governance	69
Item 11.	Executive Compensation	69
	Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	69
Item 13.	Certain Relationships and Related Transactions, and Director Independence	69
Item 14.	Principal Accountant Fees and Services	69
	PART IV
Item 15.	Exhibits and Financial Statement Schedules	70
Item 16.	Form 10-K Summary	72

Forward-Looking Statements

This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives relating to future growth of our business and availability of funds. Such forwardlooking statements can be identified by the use of forward-looking terminology such as "may," "target," "expect," "intend," "might," "believe," "anticipate," "could" "continue," "pursue," "potential," "forecast," "seek," "plan," or "should" or the negative thereof or other words or phrases. The forward-looking statements expressed or implied herein are based on current expectations that involve numerous risks and uncertainties identified in this Annual Report on Form 10-K, including, without limitation, the risks identified under the caption "Item 1A-Risk Factors." Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which or impossible to predict accurately and many of which are beyond our control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, there can be no assurance that the forward-looking statements expressed or implied in this Annual Report on Form 10-K will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements expressed or implied herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achied. Readers are cautioned not to place undue reliance on forward-looking statements speak only as of the date they are made. We do not undertake to update them to reflect changes that occur after the date they are made, except to the extent required by applicable securities laws.

Important Note

On September 3, 2019, we effected a 1-for-3 reverse stock split") on our common stock, par value \$0.001 per share ("Common Stock"). Unless otherwise specified, all Common Stock and per share of Common Stock amounts set forth in this Annual Report on Form 10-K have been adjusted to give retroactive effect to the Reverse Stock Split.

Definitions

We use certain defined terms throughout this Annual Report on Form 10-K that have the following meanings:

The phrase "ADR" represents average daily rate. It is calculated as trailing 12-month room revenue divided by the number of rooms occupied. For sold properties, ADR is presented for the Company's period of ownership only.

The phrase "annualized rent" represents gross monthly base rent, or gross monthly contractual rent under parking and retail leases, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent.

The phrase "RevPAR" represents revenue per available room. It is calculated as trailing 12-month room revenue divided by the number of available rooms. For sold properties, RevPAR is presented for the Company's period of ownership only.

PART I

Item 1. Business

Business Overview

The principal business of CIM Commercial Trust Corporation and its subsidiaries (which may be referred to in this Annual Report on Form 10-K as "we," "our," "our company", "CIM Commercial" or the "Company") is to acquire, own, and operate Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). These communities are located in areas that include traditional downtown areas and suburban main streets, which barriers to entry, high population density, postive population trends and a propensity for growth. We believe that the critical mass of redevelopment in such areas creates positive externalities, which enhance the value of real estate assets in the area. We believe that these assets will provide greater returns than similar assets in other markets as a result of the population growth, public commitment private investment that characterize these areas.

We are operated by affiliates of CIM Group, L.P. ("CIM Group" or "CIM"). CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Headquartered in Los Angeles, CA, CIM has offices across the United States and in Tokyo, Japan. See the sections "Overview and History of CIM Urban Partnership Agreement" and "Investment Management Agreement" in "Item 1-Business" of this Annual Report on Form 10-K.

We seek to utilize the CIM Group platform to acquire, improve and or develop real estate assets primarily within CIM Group's qualified communities ("Qualified Communities"). We believe that these assets will provide greater returns than similar assets in other markets, as a result of the population growth, public commitment, and significant private investment that characterize these areas. Over time, we seek to expand our real estate assets in communities targeted by CIM Group, supported by CIM Group's broad real estate capabilities, as part of our plan to prudently grow net asset value ("NAV") and cash flow per share of Common Stock.

We primarily acquire Class A and creative office assets located in areas that CIM Group has targeted. These areas include traditional downtown areas and suburban main streets, which have high barriers to entry, high population density, positive population trends and a propensity for growth. CIM Group believes that the critical mass of redevelopment in such areas creates positive externalities, which enhance the value of real estate assets in the area. CIM Group targets acquisitions of diverse types of real estate assets, including retail, residential, office, parking, hotel, signage and mixed-use through CIM Group's extensive network and its current opportunistic activities.

Our reportable segments consist of two types of commercial real estate properties, namely office and hotel, as well as a segment for our lending business, which priginates loans to small businesses. As of December 31, 2020, our real estate portfolio consisted of 12 assets, all of which were fee-simple properties. As of December 31, 2020, our nine office properties, totaling approximately 1.3 million rentable square feet, were 79.3% occupied, our one development site was being used as a parking lot, and our one hotel with an ancillary parking garage, which has a total of 503 rooms, had RevPAR of \$46.60 for the year ended December 31, 2020. For the year ended December 31, 2020, our office portfouted approximately 71.9% of revenue from our segments, while our hotel contributed approximately 17.3%, and our lending segment contributed approximately 10.8%.

Completion of the 2019 Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock

In 2019, we completed a program to unlock embedded value in our portfolio, enhance growth prove the trading liquidity of our Common Stock:

• · Sale of Assets. During 2019, we sold an aggregate of ten properties after evaluating each asset within our portfolio and the intrinsic value of each property (collectively, the "2019 Asset Sales"). We received from the 2019 Asset Sales an aggregate gross sales price of \$991.0 million.
• · Repayment of Certain Indebtedness. We used a portion of the net proceeds from the 2019 Asset Sales to repay balances on certain of our indebtedness.
• · Return of Capital to Holders of Common Stock. On August 30, 2019, we paid a special dividend of \$42.00 per share of Common Stock (\$14.00 per share of Common Stock prior to the Reverse Stock Split) (the "Special Dividend"), or \$613.3 million in the aggregate.

.56@9C:CBH9BHG

P #',#.&=EI=85H=CB

B7CBB97H=CBK=H<=HG@=EI=85H=CBDFC79GG#'/F65B,#.&&CIF:CFA9F=B8=F97H DF=B7=D5@GHC7?<C@89F-#',#.-=8=GHF=6IH988IF=B;H<9M95F9B898979A69F5DDFCL=A5H9@M G<5F9GC:CIFCAACB-HC7?:CFA9F@M=B8=F97H@M<9@86M#',#.F9DF9G9BH=B;5DDFCL=A5H9@M

C: H<9CIHGH5B8=B;G<5F9GC:CIFCAACB-HC7?HC58=J9FG9;FCIDC:=BGH=HIH=CB5@=BJ9GHCFGH<5HK9F9:CFA9FA9A69FGC: #',#.5B8==GC@8=B)7HC69FG<5F9GC:CIFCAACB-HC7?:CFA9F@M=B8=F97H@M<9@86M#' ,#.F9DF9G9BH=B;5DDFCL=A5H9@M
C:H<9CIHGH5B8=B;G<5F9GC:CIFCAACB-HC7?:CF
D9FG<5F9HC5B 5::=@=5H9C:#'!FCID=B5DF=J5H9HF5BG57H=CB

B588=H=CB=B)7HC69FK9F9DIF7<5G98G<5F9GC:CIF-9F=9G&*F9:9FF98-HC7?D5FJ5@I9

D9F G<5F9T-9F=9G&*F9:9FF98-HC7?U5H5DIF7<5G9DF=79C:
D9FG<5F9D@IG
D9FG<5F9=B577FI985B8IBD5=8 8=J=89B8G

DB8=4BB\$1942C8E4B0=3A>FC7(CA0C4684B

)IFGHF5H9;M=GDF=B7=D5@@M:C7IG98CBH<957EI=G=H=CBC:@5GG5B87F95H=J9C::=795GG9HG=BJ=6F5BH5B8=ADFCJ=B; A9HFCDC@=H5B7CAAIB=H=9GH<FCI;<CIHH<9/B=H98-H5H9G=B7@I8=B;=ADFCJ=B;5B889J9@CD=B;GI7<5GG9HG=B5A5BB9FH<5HK=@@ DFI89BH@M;FCKCIF(05B875G<:@CKD9FG<5F9C:CAACB-HC7?
19G99?HCIH=@=N9H<9#'!FCIDD@5H:CFAHC57EI=F9 =ADFCJ95B8CF89J9@CDF95@9GH5H95GG9HGDF=A5F=@MK=H<=B7CAAIB=H=9GEI5@=:=986M#'!FCID5G89G7F=69869@CK
19 69@=9J9H<5HH<9G95GG9HGK=@@DFCJ=89;F95H9FF9HIFBGH<5BG=A=@5F5GG9HG=BCH<9FA5F?9HG5G5F9GI@HC:H<9DCDI@5H=CB;FCKH< DI6@=77CAA=HA9BH5B8G=;B=:=75BHDF=J5H9=BJ9GHA9BHH<5H7<5F57H9F=N9H<9G95F95G
)J9FH=A9K9G99?HC9LD5B8CIFF95@9GH5H9 5GG9HG=B7CAAIB=H=9GH5F;9H986M#'!FCIDGIDDCFH986M#'!FCIDVG6FC58F95@9GH5H975D56=@=H=9G

19A5M5@GCD5FH=7=D5H9ACF957H=J9@M=BCH<9F#'!FCIDF95@9GH5H9GHF5H9;=9G5B8DFC8I7HHMD9G=BCF89FHC6FC589B CIFD5FH=7=D5H=CB=B#'!FCIDVGD@5H:CFA5B875D56=@=H=9G:CFH<969B9:=HC:5@@7@5GG9GC:GHC7?<C@89FG
.<=GA5M=B7@I89 K=H<CIH@=A=H5H=CB9B;5;=B;=BF95@9GH5H989J9@CDA9BH57H=J=H=9G5GK9@@5G=BJ9GH=B;=BCH<9FDFC8I7HHMD9G8=F97H@MG=89?6M? G=89K=H<CB9CFACF9:IB8GC:#'!FCIDH<FCI;<8=F97H89D@CMA9BHC:75D=H5@=B5#'!FCIDF95@9GH5H9CF896H:IB8CF 89D@CM=B;75D=H5@=BCFCF=;=B5H=B;@C5BGH<5H5F9G97IF988=F97H@MCF=B8=F97H@M6MDFCD9FH=9GDF=A5F=@M@C75H98=B+I5@=:=98 CAAIB=H=9GH<5HA99HCIFGHF5H9;M
-I7@C5BGA5M=B7@I89@=A=H985B8CFBCBF97CIFG9IB=CFA9NN5B=B9?BCH9CFB8@=9B 5B8G9B=CF57EI=G=H=CB6F=8;9CFF9DCG=H=CB=B;@C5BG

G5A5HH9FC:DFI89BHA5B5;9A9BHK9F9;I@5F@M9J5@I5H9957<5GG9HK=H<=BCIFDCFH:C@=C5GK9@@5GCIFGHF5H9;=9G -I7<F9J=9KA5MF9GI@H=B8=GDCG=H=CBGK9B5B5GG9HBC@CB;9F:=HGCIFCJ9F5@@C697H=J9GCFGHF5H9;=9GCFK<9BCIFJ=9KC:H<9 A5F?9HJ5@I9C:GI7<5GG9H=G9EI5@HCCF9L7998G=HG=BHF=BG=7J5@I9

41722'4#6+105

'!FCID69@=9J9GH<5H5J5GHA5>CF=HMC:H<9F=G?G5GGC7=5H98K=H<57EI=F=B;F95@9GH5H95F9A=H=;5H986M 577IAI@5H=B;@C75@A5F?9H?BCK@98;9C:H<97CAAIB=HMK<9F9H<95GG9H=G@C75H98

G5F9GI@H#'!FCIDHMD=75@@MGD9B8G G=;B=:=75BHF9GCIF79GCJ9F5D9F=C8C:69HK99BG=LACBH<G5B8:=J9M95FG9J5@I5H=B;7CAAIB=H=9GDF=CFHCA5?=B;5BM 57EI=G=H=CBG
.<98=GH=B7H8=GHF=7HGH<5H#'!FCID=89BH=:=9GH<FCI;<H<=GDFC79GG5GH5F;9HG:CF57EI=G=H=CBG5F9F9:9FF98HC5G T+I5@=:=98CAAIB=H=9GU
+I5@=:=98CAAIB=H=9GHMD=75@@M<5J9898=75H98F9GCIF79GHC697CA9CF5F97IFF9BH@MJ=6F5BH 7CAAIB=H=9GK<9F9D9CD@975B@=J9KCF?G<CD5B8699BH9FH5=B985@@K=H<=BK5@?=B;8=GH5B79CF7@CG9DFCL=A=HMHCDI6@=7 HF5BGDCFH5H=CB
.<9G95F95GK<=7<=B7@I89HF58=H=CB5@8CKBHCKB5F95G5B8GI6IF65BA5=BGHF99HG;9B9F5@@M<5J9<=;<65FF=9FG HC9BHFM<=;<DCDI@5H=CB89BG=HMDCG=H=J9DCDI@5H=CBHF9B8G5DFCD9BG=HM:CF;FCKH<5B8GIDDCFH:CF=BJ9GHA9BH

'!FCID 69@=9J9GH<5HH<97F=H=75@A5GGC:F989J9@CDA9BH=BGI7<+I5@=:=98CAAIB=H=9G7F95H9GDCG=H=J99LH9FB5@=H=9GK<=7<9B<5B79H<9 J5@I9C:F95@9GH5H95GG9HG=BH<95F95

'!FCIDH5F;9HG57EI=G=H=CBGC:8=J9FG9HMD9GC:F95@9GH5H95GG9HG=B7@I8=B;F9H5=@ F9G=89BH=5@C::=79D5F?=B;<CH9@G=;B5;95B8A=L98?IG9H<FCI;<#'!FCIDVG9LH9BG=J9B9HKCF?5B8=HG7IFF9BHCDDCFHIB=GH=7 57H=J=H=9G

'!FCIDG99?GHCA5L=A=N9H<9J5@I9C:=HG<C@8=B;GH<FCI;<57H=J9CBG=H9DFCD9FHMA5B5;9A9BH5B8@95G=B;

' !FCID<5G9LH9BG=J9=B?<CIG9F9G95F7<57EI=G=H=CB7F98=H5B5@MG=G89J9@CDA9BH:=B5B79@95G=B;5B8CBG=H9DFCD9FHM A5B5;9A9BH75D56=@=H=9GK<=7<@9J9F5;9=HG899DIB89FGH5B8=B;C:A9HFCDC@=H5B7CAAIB=H=9GHCDCG=H=CBDFCD9FH=9G:CFAI@H=D@9 IG9G5B8HCA5L=A=N9CD9F5H=B;=B7CA9

G5J9FH=75@@M?=BH9;F5H98CKB9F5B8CD9F5HCF#'!FCID<5G=B?<CIG9CBG=H9DFCD9FHM A5B5;9A9BH5B8@95G=B;75D56=@=H=9G
*FCD9FHMA5B5;9FGDF9D5F95BBI5@75D=H5@5B8CD9F5H=B;6I8;9HG5B8ACBH<@MCD9F5H=B; F9DCFHGACB=HCFF9GI@HG5B8CJ9FG99J9B8CFG9FJ=79GA5=BH9B5B795B875D=H5@=ADFCJ9A9BHG7<98I@9G

B588=H=CBH<9M9BGIF9 H<5HF9J9BI9C6>97H=J9G5F9A9H@95G9H9FAG5F9:C@@CK98F979=J56@9G5F97C@@97H98DF9J9BH5H=J9A5=BH9B5B79DFC;F5AG5F9 =AD@9A9BH98J9B8CFG5F99J5@I5H985B89LD9BG9G5F97CBHFC@@98

B588=H=CB#'!FCIDVGF95@5GG9HGA5B5;9A9BH7CAA=HH99 H<9T,95@GG9HG'5B5;9A9BHCAA=HH99UF9J=9KG5B85DDFCJ9GGHF5H9;=7D@5BG:CF957<5GG9H=B7@I8=B;:=B5B7=5@@95G=B; A5F?9H=B;DFCD9FHMDCG=H=CB=B;5B88=GDCG=H=CBD@5BG

.<9,95@GG9HG'5B5;9A9BHCAA=HH99F9J=9KG5B85DDFCJ9GH<9 5BBI5@6IG=B9GGD@5B:CF957<DFCD9FHM=B7@I8=B;=HG75D=H5@5B8CD9F5H=B;6I8;9H

'!FCIDVGCF;5B=N5H=CB5@GHFI7HIF9

provides for continuity through multi-disciplinary teams responsible for an asset from the original investment recommendation, through the implementation of the asset's business plan, and any disposition activities.

CIM Group's Investments and Development teams are separate groups that work very closely together on transactions requiring development expertise. While the Investments team is responsible for acquisition analysis, both the Investments and Development teams perform due diligence, evaluate and determine underwriting assumptions and participate in the development management and ongoing asset management of CIM Group's opportunistic assets. The Development team is also responsible for the oversight and or execution of securing entitlements and the development/repositioning process. In instances where ClM Group is not the lead developer, CIM Group's in-house Development team continues to provide development and construction oversight to co-sponsors through a shadow team that oversees of the development from beginning to end to ensure adherence to the budgets, schedules, quality and scope of the project in order to maintain CIM Group's vision for the final product. The Investments and Development teams interact as a cohesive team when sourcing, acquiring, executing and managing the business plan of an opportunistic acquisition.

Competitive Advantages

We believe that CIM Group's experienced team and vertically-integrated and multi-disciplinary organization, coupled with its community-focused and disciplined real estate approach, results in a beneficial competitive advantage. Additionally, CIM Group's community-focused strategy is complemented by a number of other competitive advantages including CIM Group's prudent use of leverage, underwriting approach, disciplined capital deployment, and strong network of relationships. CIM Group's competitive advantages include:

Vertically-Integrated Organization and Team

CIM Group is managed by its senior management team, which is composed of its three founders, Shaul Kuba, Richard Ressler and Avraham Shemesh, and includes 10 other principals. CIM Group is vertically-integrated and organized into six functional groups: Real Property Related Services (which includes the Development, Onsite Property Management, Real Estate Services and Hospitality Services departments), Shared Services (which includes the Compliance, Operations, Human Resources, Marketing & Communications, Legal and Finance departments), Investments, Portfolio Oversight, Capital Markets and Partner & Co-Investor Relations. CIM also has an internal audit team that sits within the Operations department.

To support CIM Group's organic growth and related platforms, CIM Group has invested substantial time and resources in building a strong and integrated team of approximately 562 experienced professionals as of December 31, 2020. Each of CIM Group's teams is managed by seasoned professionals and CIM Group continues to expand and develop its management team, to include the next generation of CIM Group's leaders. In addition to developing a core team of principals and senior level management, CIM Group has proactively managed its growth through career development and mentoring at both the mid and junior staffing levels, and has hired ahead of its needs, thus ensuring appropriate management and staffing.

CIM Group leverages the deep operating and industry experience of its principals and professionals, as well as their extensive relationships, to source and execute opportunistic, value add, core, and infrastructure acquisitions. Each opportunity is overseen by a dedicated Investment team, including an oversight principal, a team lead (vice president level and above), associate vice presidents and associates, who are responsible for managing the asset from sourcing, underwriting, acquisition, development (if required), onsite property management, and disposition. As part of this process, the team draws upon CIM Group's extensive in-house expertise in legal, finance, development, leasing, and onsite property management. Each dedicated Investment team is purposefully staffed with professionals from multiple CIM Group offices, regardless of the location of the asset being evaluated. As a result, all investment professionals work across a variety of Qualified Communities and CIM Group's knowledge base is shared across its offices.

Community Qualification

Since inception, CIM Group's proven community qualification process has served as the foundation for its investing strategy. CIM Group targets high barrier to entry markets with high population density and applies rigorous research to designate the market as a CIM Group Qualified Community for potential acquisitions. Since 1994, CIM Group has identified 135 Qualified Communities and has deployed capital in 75 of them. As part of the community qualification process, CIM Group examines the characteristics of a market to determine whether the district possesses certain characteristics prior to the extensive efforts CIM Group's investment professionals undertake when reviewing potential acquisitions. Qualified Communities generally fall into one of two categories:

(i) transitional metropolitan districts that have dedicated resources to become vibrant metropolitan communities and (ii) well-established, thriving metropolitan areas (typically major central business districts).

Once a community is qualified, CIM Group believes it continues to differentiate itself through the following business principles:

• · Product Non-Specific-CIM Group has extensive experience owning and operating a diverse range of property types, including retail, residential, office, parking, hotel, signage and mixed-use, which gives CIM Group the ability to effectively execute and capitalize on its strategy. Successful acquisitions require selecting the right markets coupled with providing the right product. CIM Group's experience with multiple asset types does not predispose CIM Group to select certain asset types, but instead ensures that they deliver a product mix that is consistent with the market's requirements and needs. Additionally, there is a growing trend towards developing mixed-use real estate properties in metropolitan markets which requires a diversified platform to successfully execute.
• · Community-Based Tenanting—CIM Group's strategy focuses on the entire community and the best use of assets in that community; owning a significant number of key properties in an area better enables CIM Group to meet the co-tenancy needs of national retailers and office tenants and thus optimize the value of these real estate properties. CIM Group believes that its community perspective gives it a significant competitive advantage in attracting tenants to its retail, office and mixed-use properties and creating synergies between the different tenant types.
• Local Market Leadership with North American Footprint-CIM Group maintains local market knowledge . and relationships, along with a diversified North American presence, through its 135 Qualified Communities (thus, CIM Group has the flexibility to deploy capital in its Qualified Communities only when the market environment meets CIM Group's underwriting standards). CIM Group does not need to acquire assets in a given community or product type at a specific time due to its broad proprietary pipeline of opportunities.
• · Deploying Capital Across the Capital Stack-CIM Group has extensive experience structuring transactions across the capital stack including equity, preferred equity, debt and mezzanine positions, giving it the flexibility to structure transactions in efficient and creative ways.

Discipline

CIM Group's strategy relies on its sound business plan and value creation to produce returns, rather than financial engineering. CIM Group's underwriting of its potential acquisitions is performed generally both on a leveraged and unleveraged basis. Additionally, with certain exceptions, CIM Group has generally not utilized recourse or cross-collateralized debt due to its conservative underwriting standards.

CIM Group employs multiple underwriting scenarios when evaluating potential acquisition opportunities. CIM Group generally underwrites potential acquisitions utilizing long-term average exit capitalization rates for similar product types and long-term average interest rates. Where possible, these long-term averages cross multiple market cycles, thereby mitigating the risk of cyclical volatility. CIM Group's "long-term average" underwriting is based on its belief, reinforced by its experience through multiple market cycles, that over the life of any given fund that it manages, such fund should be able to exit its holdings at long-term historical averages. CIM Group also underwrites a "current market case" scenario, which generally utilizes current submarket specific exit assumptions and interest rates, in order to reflect anticipated results under current market conditions. CIM Group believes that utilizing multiple underwriting scenarios enables CIM Group to assess potential returns relative to risk within a range of potential outcomes.

Financing Strategy

We may finance our future activities through one or more of the following methods: (i) offerings of Common Stock, Preferred Stock or other equity and or debt securities of the Company; (ii) credit facilities and term loans; (ii) the addition of senior recourse or non-recourse debt using target acquisitions as well as existing assets as collateral; (iv) the sale of existing assets; and or (v) cash flows from operations.

We issued to CIM Capital, LLC, an affiliate of CIM Group ("the Operator"), an aggregate of 203,349 shares of our Common Stock and 287,199 shares of our Series A Preferred Stock, par value \$0.001 per share ("Series A Preferred Stock"), as payment, in lieu of cash, for all asset management fees owed to the Operator in respect of fees incurred during the year ended December 31, 2020. Additionally, we issued to CIM Service Provider, LLC, an affiliate of CIM Group (the "Administrator"), 11,273 shares of Series A Preferred Stock, in lieu of cash as payment of the Base Service Fee (as defined below) in respect of the first fiscal quarter of the year ended December 31, 2020. All of such securities were issued pursuant to the exemption from

registration contained in Section 4(a)(2) of the Securities Act. It is likely that we will seek to pay some or part of the asset management fees for part of the year ending December 31, 2021 in shares of Series A Preferred Stock.

Risk Management

As part of its risk management strategy, CIM Group continually evaluates our assets and actively manages the risks involved in our business strategies. CIM Group's Investments and Portfolio Oversight teams share asset management responsibilities, setting the strategy for and monitoring the performance of our assets relative to market and industry benchmarks and internal underwriting assumptions using direct knowledge of local markets provided by ClM Group's in-house onsite property management, and leasing professionals. In-house onsite property management capabilities include monthly and annual budgeting and reporting as well as vendor services management, property maintenance and capital expenditures management. Property management seeks to ensure objectives are met, lease terms are followed, receivables are collected, preventative maintenance programs are implemented, vendors are controlled. The Real Assets Management Committee oversees onsite property management and consists of certain of the Oversight Principals, each of whom has extensive experience in acquisitions, development, onsite property management and leasing, who are ultimately responsible for the performance of the chief compliance officer. The Oversight Principals work with each CM Group team to ensure that every asset benefits from the full range of CIM Group's real estate expertise. CIM Group believes that empowering its most seasoned investment professionals to bring their breadth of experience to bear directly on assess will optimize returns.

The Oversight Principals meet informally on a frequent basis, generally weekly, to review and discuss the performance of assets, and meet formally at least annually to review and approve strategic plans for our assets based on their review of. financial and operational analyses, operating strategies and agreements, tenant composition and marketing, asset positioning, market conditions affecting our assets, holdsell analyses and timing considerations, and the annual business plan for each asset, including its capital and operating budget.

The size, composition, and policies of the Real Assets Management Committee may change from time to time.

Regulatory Matters

Environmental Matters

Environmental laws regulate, and impose liability for, the release of hazardous or toxic substances into the environment. Under some of these laws, an owner or operator of real estate may be liable for costs related to soil or groundwater contamination on or migrating to or from its property. In addition, persons who arrange for the disposal or treatment of hazardous or toxic substances may be liable for the costs of cleaning up contamination at the disposal site.

These laws often impose liability regardless of whether the person knew of, or was responsible for, the presence of the hazardous or toxic substances that caused the contamination resulting from any of these substances, or the failure to properly remediate them, may adversely affect our ability to sell or rent our property, to borrow using the property as collateral or create lender's liability for us. In addition, third parties exposed to hazardous or toxic substances may sue for personal injury damages. For example, some laws impose lability for release of or exposure to asbestos-containing materials. As a result, in connection with our former, current or future ownership, operation, and development of real properties, or our role as a lender for loans secured directly by real estate properties, we may be potentially liable for investigation and cleanup costs, penalties and damages under environmental laws.

Although many of our properties have been subjected to preliminary environmental assessments, known as Phase I assessments, by independent environmental consultants that identify certain liabilities, Phase I assessments are limited in scope, and may not include or identify all potential environmental liabilities or risks associated with a property. Unless required by applicable law, we may decide not to further investigate, remedy or ameliorate the liabilities disclosed in the Phase I assessments

Further, these or other environmental studies may not identify all potential environmental liabilities or accurately assess whether we will incur material liabilities in the future. If we do incur material environmental liabilities in the future, our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock (as defined in "Item 1A-Risk Factors") could be materially adversely affected.

Americans with Disabilities Act of 1990

Under the Americans with Disabilities Act of 1990, as amended (the "ADA"), all public accommodations must meet federal requirements related to access and use by disabled persons. Although we believe that our properties, to the extent such properties are "public accommodations" as defined under the ADA, substantially comply with present requirements of the ADA, we have not conducted an audit or investigation of all of our properties to determine our compliance. If one or more of our properties or future properties are not in compliance with the ADA, we may be required to take remedial action which would require us to incur additional costs to bring the property into compliance. We cannot predict the ultimate amount, if any, of the cost of compliance with the ADA or the cost of any damages or attorney's fees to private litigants or any fines imposed by the federal government in respect of any failure to comply with the ADA.

Competition

We compete with others engaged in the acquisition, origination, development, and operation of real estate and real estate-related assets. Our competitors include REITs, insurance companies, private equity funds, sovereign wealth funds, hedge funds, mortgage banks, investment banks, savings and loan associations, specially finance companies, and private and investors and financial companies that pursue strategies similar to ours. Many of our competitors may be larger than us with greater access to capital and other resources and may have other advantages over us. In addition, some of our competitors may have higher risk tolerances or lower profitability targets than us, which could allow them to pursue new business more aggressively than us. We believe that our relationship with CIM Group gives us a competitive advantage that allows us to operate more effectively in the markets in which we conduct our business.

Overview and History of CIM Group

CIM Group was founded in 1994 by Shaul Kuba, Richard Ressler and Avraham Shemesh and has approximately \$29.3 billion of assets owned and operated across its vehicles as of September 30, 2020. "Assets owned and operated" refers to the aggregate assets owned and operated by CIM Group on behalf of itself, the funds it manages, and third-party co-investors, consisting of real estate properties and includes all real property operated by CIM Group whether or not CIM Group has final decision-making authority concerning such properties. CIM Group's successful track record is anchored by CIM Group's community-oriented approach to acquisitions as well as a number of other competitive advantages including its prudent use of leverage, underwriting approach, disciplined capital deployment, vertically-integrated capabilities and strong network of relationships. CIM Group has generated strong risk-adjusted returns across multiple market cycles by focusing on improved asset and community performance, and capitalizing on market inefficiencies and distressed situations.

CIM Urban Partnership Agreement

Our subsidiary, CIM Urban Partners, L.P. ("CIM Urban"), is governed by CIM Urban's partnership agreement (as amended and restated, the "CIM Urban Partners''). The general partner of CIM Urban, Urban Partners GP, LLC ("CIM Urban GP"), is an affiliate of CIM Group and has the full, exclusive and complete right, power, authority, discretion and responsibility vested in or assumed by a general partnership under the Delaware Revised Uniform Limited Partnership Act and as otherwise provided by law and is vested with the full, exclusive and complete right, power and discretion to operate, manage and control the affairs of CIM Urban, subject to the CIM Urban Partnership Agreement.

Liability for Acts and Omissions

None of CIM Urban GP or any of its affiliates, members, stockholders, partners, managers, officers, directors, employees, agents and representatives will have any liability in damages or otherwise to any investors in CIM REIT or CIM Urban, and CIM Urban will indemnify such persons from and all liabilities, obligations, losses, damages, penalties, actions, judgments, lawsuits, proceedings, costs, expenses and disbursements of any kind may be imposed on, incurred by or asserted against such persons in any way relating to or arising out of any action on the part of such persons when acting on behalf of CIM Urban or any of its investments, except for those liabilities that result from such persons' fraud, gross negligence, willful misconduct or breach of the CIM Urban Partnership Agreement or any other agreement between such person and CIM Urban or its affiliates.

Investment Management Agreement

In December 2015, CIM Urban and the Operator, entered into an investment agreement, pursuant to which CIM Urban engaged CIM Capital to provide certain services to CIM Urban (the "Investment Agreement"). On January 1, 2019, CIM Capital assigned its duties under the Investment Agreement to its four wholly-owned subsidianes: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The "Operator" refers to CIM Investment Advisors, LLC from December 10, 2015 to December 31, 2018 and to CIM Capital and its four wholly-owned subsidiaries on and after January 1, 2019.

.56@9C:CBH9BHG

'/F65BD5MG5GG9HA5B5;9A9BH:99GHCH<9)D9F5HCFCB5EI5FH9F@M65G=G=B5FF95FG

.<9:99=G75@7I@5H985G5 D9F79BH5;9C:H985=@M5J9F5;958IGH98:5=FJ5@I9C:#'/F65BVG5GG9HG5G89G7F=698=B(CH9HCCIF7CBGC@=85H98:=B5B7=5@ GH5H9A9BHG=B7@I898=BH<=GBBI5@,9DCFHCB CFA?%
.<9)D9F5HCF=GF9GDCBG=6@9:CFH<9D5MA9BHC:5@@7CGHG5B89LD9BG9G F9@5H=B;HCH<9;9B9F5@CD9F5H=CBC:=HG6IG=B9GG=B7@I8=B;58A=B=GHF5H=J99LD9BG9G9AD@CMA9BH9LD9BG9G5B8C::=799LD9BG9G @@7CGHG5B89LD9BG9G=B7IFF986MH<9)D9F5HCFCB69<5@:C:#'/F65B5F96CFB96M#'/F65B

B588=H=CB#'/F65B 5;F998HC=B89AB=:MH<9)D9F5HCF5;5=BGH@CGG9G7@5=AG85A5;9GCF@=56=@=H=9G5B8F9=A6IFG9H<9)D9F5HCF:CF=HG@9;5@5B8 CH<9F9LD9BG9G=B957<75G9=B7IFF98=B7CBB97H=CBK=H<5BM57H=CBDFC7998=B;CF=BJ9GH=;5H=CB5F=G=B;CIHC:CF=B7CBB97H=CB K=H<#'/F65BVG6IG=B9GGCF5::5=FG9L79DHHCH<99LH9BHGI7<@CGG9GCF9LD9BG9GF9GI@H:FCA:F5I8;FCGGB9;@=;9B79CFK=@@:I@ A=G7CB8I7HC:CF56F957<C:H<9H9FAGC:H<9#BJ9GHA9BH'5B5;9A9BH;F99A9BH6MH<9)D9F5HCF

(CH<=B;=BH<9#BJ9GHA9BH'5B5;9A9BH;F99A9BH@=A=HGCFF9GHF=7HGH<9F=;<HC:5BMD5FHB9FC::=79FCF9AD@CM99C: H<9)D9F5HCFHC9B;5;9=B5BMCH<9F6IG=B9GGCFHC89JCH9<=GH=A95B85HH9BH=CB=BD5FHHC5BMCH<9F6IG=B9GG
(CH<=B;=BH<9 #BJ9GHA9BH'5B5;9A9BH;F99A9BH@=A=HGCFF9GHF=7HGH<9F=;<HC:H<9)D9F5HCFHC9B;5;9=B5BMCH<9F6IG=B9GGCFHCF9B89F G9FJ=79GC:5BM?=B8HC5BMCH<9FD9FGCB

.<9#BJ9GHA9BH'5B5;9A9BH;F99A9BHK=@@F9A5=B=B9::97HIBH=@#'/F65B=G8=GGC@J98CF#'/F65B5B8H<9 )D9F5HCFCH<9FK=G9AIHI5@@M5;F99

"0BC4A(4AE824B6A44<4=C

.<98A=B=GHF5HCFDFCJ=89GCF5FF5B;9G:CFCH<9FG9FJ=79DFCJ=89FGHCDFCJ=89A5B5;9A9BH5B858A=B=GHF5H=CB G9FJ=79GH<9T5G9-9FJ=79GUHC#'CAA9F7=5@5B8=HGGI6G=8=5F=9GIB89FH<9H9FAGC:5A5GH9FG9FJ=79G5;F99A9BH85H985G C:'5F7<5G5A9B898CB'5MH<9T'5GH9F-9FJ=79G;F99A9BHU
*IFGI5BHHCH<9'5GH9F-9FJ=79G ;F99A9BHK95DDC=BH985B5::=@=5H9C:#'!FCID5GH<958A=B=GHF5HCFC:#'/F65B!*T/F65B!*8A=B=GHF5HCFU
/B89F H<9'5GH9F-9FJ=79G;F99A9BH#'CAA9F7=5@D5MGHCH<98A=B=GHF5HCFCB5EI5FH9F@M65G=G5B=B79BH=J9:99H<9 T#B79BH=J9 99U9EI5@HC
C:#'CAA9F7=5@VGEI5FH9F@M7CF9:IB8G:FCACD9F5H=CBG=B9L79GGC:5EI5FH9F@MH<F9G<C@8 9EI5@HC
=
9

CB5B5BBI5@=N9865G=GC:#'CAA9F7=5@VG5J9F5;958>IGH987CAACBGHC7?<C@89FGV9EI=HM=
9 7CAACBGHC7?<C@89FGV9EI=HMD@IG577IAI@5H9889DF97=5H=CB5B85ACFH=N5H=CB:CFGI7<EI5FH9F
*F=CFHCH<95A9B8A9BHC:H<9 '5GH9F-9FJ=79G;F99A9BH=B:CF:=G75@EI5FH9FGDF=CFHCDF=@#'CAA9F7=5@D5=8HCH<98A=B=GHF5HCFCB5 EI5FH9F@M65G=G565G9G9FJ=79:99H<9T5G9-9FJ=79 99UC:5DDFCL=A5H9@M
A=@@=CBD9FM95FK<=7<:CF95797HHC5B5BBI5@9G75@5H=CB6M5GD97=:=98=B:@5H=CB:57HCF69;=BB=B;CB\$5BI5FMC:957<M95F

B588=H=CBDIFGI5BHHCH<9H9FAGC:H<9'5GH9F-9FJ=79G;F99A9BHH<98A=B=GHF5HCFA5MF979=J97CAD9BG5H=CB5B8 CFF9=A6IFG9A9BH:CFD9F:CFA=B;79FH5=BG9FJ=79GCH<9FH<5BH<95G9-9FJ=79G:CF#'CAA9F7=5@5B8=HGGI6G=8=5F=9G

-I7< G9FJ=79GD9F:CFA986MH<98A=B=GHF5HCF5B8=HG5::=@=5H9GA5M=B7@I89577CIBH=B;H5LF9DCFH=B;=BH9FB5@5I8=H@9;5@ 7CAD@=5B79F=G?A5B5;9A9BH#.<IA5BF9GCIF79G7CFDCF5H97CAAIB=75H=CBGCD9F5H=CB5@5B8CB?;C=B;GIDDCFH=B7CBB97H=CB K=H<CIFF9;=GH9F98DI6@=7C::9F=B;C:CIF-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?D5FJ5@I9
D9FG<5F9 T-9F=9G*F9:9FF98-HC7?U5B8HC;9H<9FK=H<H<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?T*F9:9FF98-HC7?U .<98A=B=GHF5HCFVG7CAD9BG5H=CB:CFGI7<G9FJ=79G=G65G98CBH<9G5@5F=9G5B869B9:=HGC:H<99AD@CM99GC:H<98A=B=GHF5HCF 5B8CF=HG5::=@=5H9GK<CD9F:CFA98GI7<G9FJ=79G5@@C75H9865G98CBH<9D9F79BH5;9C:H=A9GD9BHCBH<95::5=FGC:#' CAA9F7=5@5B8=HGGI6G=8=5F=9G

\$C74A(4AE824B

''5B5;9A9BH#B7

5B879FH5=BC:=HG5::=@=5H9G7C@@97H=J9@MH<9T#''5B5;9A9BHBH=H=9GU5@@5::=@=5H9GC:#' ,#.5B8#'!FCIDDFCJ=89DFCD9FHMA5B5;9A9BH@95G=B;5B889J9@CDA9BHG9FJ=79GHC#'/F65BDIFGI5BHHCJ5F=CIG 5;F99A9BHG

'--H5::=B;&&5B5::=@=5H9C:#'!FCIDT#'-UDFCJ=89GD9FGCBB9@5B8F9GCIF79GHCIGDIFGI5BHHC H<9H9FAGC:5-H5::=B;5B8,9=A6IFG9A9BH;F99A9BH85H985GC:\$5BI5FM69HK99B#'-5B8*'CAA9F7=5@ &9B8=B;&&CIFGI6G=8=5FM

19F9=A6IFG9#'-:CFH<97CGHG5B89LD9BG9GC:DFCJ=8=B;GI7<D9FGCBB9@5B8F9GCIF79G

)5D=H5@&&5F9;=GH9F986FC?9F895@9F5B8=GIB89F7CAACB7CBHFC@K=H<H<9)D9F5HCF5B8H<98A=B=GHF5HCF T)5D=H5@UG9FJ9G5GCIF9L7@IG=J9895@9FA5B5;9F:CFCIF7CBH=BICIGDI6@=7C::9F=B;C:-9F=9G*F9:9FF98-HC7?5B8 -9F=9G*F9:9FF98-HC7?IB89FH<9H9FAGC:5-97CB8A9B8985B8,9GH5H9895@9F'5B5;9F;F99A9BH85H985GC:\$5BI5FM 5G5A9B8986MA9B8A9BH(C
H<9F9HC85H985GC:DF=@H<9T-97CB8,'U
/B89FH<9H9FAGC: H<9-97CB8,')5D=H5@F979=J9G:CFGI7<G9FJ=79G5BID:FCBH895@9FA5B5;9F:99C:IDHC
C:H<9G9@@=B; DF=79C:957<GI7<G<5F9C:*F9:9FF98-HC7?GC@8G9@@=B;7CAA=GG=CBGC:IDHC
C:H<9G9@@=B;DF=79C:957<GI7<G<5F9 C:-9F=9G*F9:9FF98-HC7?GC@8K=H<BCG9@@=B;7CAA=GG=CBGD5M56@9=BF9GD97HC:G<5F9GC:-9F=9G*F9:9FF98-HC7?GC@8 5B85HF5=@=B;895@9FA5B5;9F:99H<5H577FI9G85=@M=B5B5ACIBH9EI5@HCH<C:
D9F5BBIAC:H<9G9@@=B;DF=79C: 957<G<5F9C:*F9:9FF98-HC7?GC@8
*F=CFHCH<95A9B8A9BHC:H<9-97CB8,'=BDF=@H<9G9@@=B;7CAA=GG=CBG

D5M56@9HC)5D=H5@K9F9IDHC
C:H<9G9@@=B;DF=79C:957<G<5F9C:-9F=9G*F9:9FF98-HC7?GC@8F5H<9FH<5BIDHC .<9-97CB8,'D9FA=HG)5D=H5@HC=B=HGGC@98=G7F9H=CBF95@@CKHC5BCH<9F6FC?9F?895@9F5IH<CF=N986M=H HCG9@@G<5F9G=BH<9C::9F=B;5DCFH=CBC:H<9ID:FCBH895@9FA5B5;9F:9995FB986M=H=BF9GD97HC:G<5F9GGC@86MGI7<6FC?9F? 895@9F
19<5J9699B=B:CFA98H<5H)5D=H5@;9B9F5@@MF95@@CKGC:H<9G9@@=B;7CAA=GG=CBGCBG5@9GC:-9F=9G *F9:9FF98-HC7?5B8;9B9F5@@MF95@@CKGGI6GH5BH=5@@M5@@C:H<9ID:FCBH895@9FA5B5;9F:99CBG5@9GC:-9F=9G*F9:9FF98-HC7? 5B8-9F=9G*F9:9FF98-HC7?HCD5FH=7=D5H=B;6FC?9F?895@9FG

FCA'5MH<FCI;<\$5BI5FM)5D=H5@G9FJ985GH<99L7@IG=J9895@9FA5B5;9F:CFCIFDI6@=7 C::9F=B;C:IB=HG957<C:K<=7<7CBG=GH98C:CB9G<5F9C:-9F=9G*F9:9FF98-HC7?5B8CB9K5FF5BHHCDIF7<5G9
G<5F9GC: CAACB-HC7?T-9F=9G*F9:9FF98/B=HGU
)IFC::9F=B;C:-9F=9G*F9:9FF98/B=HGK5GH9FA=B5H985HH<99B8C:\$5BI5FM

!4=38=6 (46<4=C

.<FCI;<CIF@C5BGCF=;=B5H98IB89FH<9-A5@@IG=B9GG8A=B=GHF5H=CBVGT-U5!I5F5BH998&C5B*FC;F5A T-5*FC;F5AUK95F95B5H=CB5@@9B89FH<5HDF=A5F=@MCF=;=B5H9G@C5BGHCGA5@@6IG=B9GG9G
19=89BH=:M@C5BCF=;=B5H=CB CDDCFHIB=H=9GH<FCI;<D9FGCB5@7CBH57HG=BH9FB9HF9:9FF5@G5HH9B85B795HHF589G<CKG5B8A99H=B;G8=F97HA5=@=B;G 58J9FH=G9A9BHG=BHF589DI6@=75H=CBG5B8CH<9FA5F?9H=B;A9H<C8G
195@GC;9B9F5H9@C5BGH<FCI;<F9:9FF5@G:FCAF95@9GH5H95B8 @C5B6FC?9FG:F5B7<=G9F9DF9G9BH5H=J9G9L=GH=B;6CFFCK9FG@5KM9FG5B8577CIBH5BHG

B588=H=CB5G5-5@=79BG99K95F95B5IH<CF=N98@9B89FIB89FH<9*5M7<97?*FCH97H=CB*FC;F5A H<9T***U 9B57H988IF=B;H<9M95F9B898979A69F

.<9***DFCJ=89G@9B89FGIB89FH<9DFC;F5AK=H<5;I5F5BHMC:F9D5MA9BHDFCJ=89879FH5=B7CB8=H=CBG5F9A9H 5B8DFCJ=89GH<9GA5@@6IG=B9GG9GK=H<IB7C@@5H9F5@=N985B8IB;I5F5BH998@C5BG5H5B=BH9F9GHF5H9C:

&C5BGCF=;=B5H98 IB89FH9424242K=@@69:I@@M:CF;=J9BGI697HHC79FH5=B@=A=H5H=CBGK<9BIG986MH<96CFFCK9F:CFD5MFC@@7CGHG=BH9F9GHCB ACFH;5;9GF9BH5B8IH=@=H=9G
CFH<CG9@C5BGH<5H5F9:CF;=J9BH<9-K=@@F9A=HC:H<9F9A5=B=B;CIHGH5B8=B;DF=B7=D5@ D@IG577FI98=BH9F9GHHCIG
CFH<CG9@C5BGK<CG96CFFCK9FG8CBCHA99HH<97F=H9F=5F9EI=F98:CF:CF;=J9B9GGH<96CFFCK9F=G F9EI=F98HCF9D5MH<9F9A5=B=B;C6@=;5H=CB
/DCB56CFFCK9F89:5I@HC:5BMF9A5=B=B;65@5B798I9=:5BMH<9-K=@@F9A=H H<965@5B798I9HCIG
.<9@C5BGH<5HK9CF=;=B5H98IB89FH<9***<5J95HKC?M95FH9FA=:CF=;=B5H98DF=CFHC\$IB95B8 <5J95:=J9?M95FH9FA=:CF=;=B5H985:H9F\$IB9
.<9***DFCJ=89G:CF:IB8=B;HCIGH<FCI;<H<9 989F5@,9G9FJ9CB5 65G=GH<97CFF9@5H9GHCH<9CIHGH5B8=B;DF=B7=D5@65@5B798I9:FCACIF6CFFCK9FGDIFGI5BHHCH<9***CB58C@@5F?:CF?8C@@5F65G=G K=H<57CGHC::IB8GC:

(40B>=0;8CH

)IFF9J9BI9G5B89LD9BG9G:CFCIFCH9@DFCD9FHM5F9GI697HHCG95GCB5@=HM8IF=B;H<9M95F
!9B9F5@@MCIF<CH9@ F9J9BI9G5F9;F95H9F=BH<9:=FGH5B8G97CB8EI5FH9FGH<5BH<9H<=F85B8:CIFH<EI5FH9FG
.<=GG95GCB5@=HM75B699LD97H98HC75IG9 EI5FH9F@M:@I7HI5H=CBG=BF9J9BI9GG9;A9BHB9HCD9F5H=B;=B7CA9B9H=B7CA95B875G<DFCJ=8986MCD9F5H=B;57H=J=H=9G 88=H=CB5@@MCIFCD9F5H=B;F9GI@HG<5J9699B5B8K=@@6958J9FG9@M5::97H986MH<97CBH=BI989::97HGC:H<9BCJ9@7CFCB5J=FIG T)0#?U5B8F9BCJ5H=CBGC:H<9;I9GHFCCAG:CC85B869J9F5;95A9B=H=9GDI6@=75F95GA99H=B;FCCAG5B8CH<9F 5A9B=H=9G5HCIF<CH9@K<=7<F9BCJ5H=CBGK9F9GIGD9B898=B'5F7<6IHA5M69F9GIA98=B5GK9@@5GH<9 H9ADCF5FM7@CGIF9C:H<9B95F6M-57F5A9BHCCBJ9BH=CB9BH9FIBH=@=HG9LD97H98F9CD9B=B;=B95F@M

B588=H=CBH<9<CH9@ =B8IGHFM=G7M7@=75@5B889A5B8;9B9F5@@M:C@@CKGCB5@5;;9865G=G?9MA57FC97CBCA=7:57HCFG

)4=0=C>=24=CA0C8>=

%5=G9F CIB85H=CB"95@H<*@5B#B7CFDCF5H98T%5=G9FUK<=7<C77ID=98C::=79GD579=BCB9C:CIF)5?@5B8 5@=:CFB=5DFCD9FH=9G577CIBH98:CF
C:CIF5BBI5@=N98F9BH5@=B7CA9:CFH<9M95F9B898979A69F
(CCH<9F H9B5BH577CIBH98:CF;F95H9FH<5B
C:CIF5BBI5@=N98F9BH5@=B7CA9:CFH<9M95F9B898979A69F

Human Capital

We are operated by affiliates of CIM Group and, as of December 31, 2020, only have four employees. Three of such employees are in our lending segment while one employee spends a substantial portion of the time that he devotes to us on matters relating to the lending segment. We have entered into the Master Services Agreement with the Administrator, an affiliate of CIM Group, pursuant to which the Administrator has agreed to provide, or arrange for other service providers to provide, management and administration services to us and our subsidiaries.

Offices

We are headquartered in Dallas, Texas.

Available Information

The public can access free of charge through the "Shareholders" section of our corporate website, www.cimcommercial.com, our annual reports on Form 10-X, quarterly reports on Form 10-Q and current reports on Form 8-X, and amendments to those reports filed with or furnished to the Securities and Exchange Commission (the "SEC") as soon as reasonably practicable after such material is filed with or furnished to the SEC. The information on our corporate website is not part of this Annual Report on Form 10-K. The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding our filings.

We have adopted a written code of ethics that applies to all of our directors, officers and employees, the Operator and the Administrator, including our principal executive officer, in accordance with Section 406 of the Sarbanes-Oxley Act of 2002 and the rules of the SEC promulgated thereunder. The code of ethics, which we call our Code of Business Conduct and Ethics, is available on our corporate website, www.cimcommercial.com, in the section entitled "Shareholders-Corporate Overview-Corporate Governance." In the event that we make changes in, or provide waivers from, the provisions of such code of ethics that the SEC requires us to disclose these events on our corporate website in such section. In the Corporate Governance section of our corporate website, we have also posted our Audit Committee Charter, as well as our Governance Principles.

Item 1A. Risk Factors

This section sets forth certain factors that make an investment in our Company speculative or risky, including the following:

Risks Related to Our Business

• · The outbreak of the novel coronavirus (COVID-19) has negatively affected and will likely continue to negatively affect our business, financial condition, results of operations and cash flows.
• · The COVID-19 pandemic has had, and may continue to have, significant impacts on workplace practices and those changes, or other office space utilization trends, could impact our business.
• · Uninsured losses or losses in excess of our insurance coverage could materially adversely affect our financial condition and cash flows, and there can be no assurance as to future costs and the scope of coverage that may be available under insurance policies.

Risks Related to Conflicts of Interest

• · Neither the Master Services Agreement nor the Investment Management may be terminated by us (except in limited circumstances for cause in the Master Services Agreement) and the Master Services Agreement may be assigned by the Administrator in certain circumstances without our consent, either or both of which may have a material adverse effect on us.
• · The Administrator and Operator are entitled to receive fees for the services they provide regardless of our performance, which may reduce their incentive to devote time and resources to our portfolio.

• · The Operator may undertake transactions that are motivated, in whole or in part, by a desire to increase its compensation.

• · Each of the Administrator and Operator provides services to us under broad mandates, and our Board of Directors may not necessarily be involved in each acquisition or financing decision made by the Administrator or Operator.

• · Certain of our directors and executive officers may face conflicts of interest related to positions they hold with the Operator, the Administrator, CIM Group and their affiliates, which could result in decisions that are not in the best interest of our stockholders.
• The business of CIM Urban is managed by Urban GP Administrator and we agreed in the Master Services Agreement to appoint an affiliate of CIM Group as the manager of the general partner of CIM Urban.

Risks Related to Our Organizational Structure

• · Certain provisions of the Maryland General Corporation Law (the "MGCL") could inhibit changes in control.
• · The power of the Board of Directors to revoke our REIT election without stockholder approval may cause adverse consequences to our stockholders.
• · The MGCL or our charter may limit the ability of our stockholders or us to recover on a claim against a director or officer who negligently causes us to incur losses.
• · The liability of the Administrator and the Operator to us under the Master Services Agreement and the Investment Management Agreement, respectively, is limited and we and CIM Urban have agreed to indemnify the Administrator and the Operator, respectively, against certain liabilities. As a result, we could experience poor performance or losses for which neither the Administrator nor the Operator would be liable.

Risks Related to Real Estate Assets

• · Our operating performance is subject to risks associated with the real estate industry.
• · A significant portion of our properties, by aggregate net operating income and square feet, are located in California. We are dependent on the California real estate market and economy, and are therefore susceptible to risks of events in the California market that could adversely affect our business, such as adverse market conditions, changes in local laws or regulations and natural disasters.
• · Tenant concentration increases the risk that cash flow could be interrupted.
• If a major tenant declares bankruptcy, we may be unable to collect balances due under relevant leases, which could have a material adverse effect on our financial condition and ability to pay distributions to our stockholders.
• · We may be unable to renew leases or lease vacant office space.
• · A significant portion of our net operating income is expected to come from our hotel. The outbreak of a highly infectious, contagious or widespread disease, such as COVID-19, has reduced and is expected to continue to reduce travel and adversely affect demand for our hotel.
• · Income from our long-term leases is an important source of our cash flow from operations and is subject to risks related to increases in expenses and inflation.
• · Real estate-related taxes may increase, and if these increases are not passed on to tenants, our income will be reduced.

Risks Related to Debt Financing

• · We have incurred significant indebtedness and may incur significant additional indebted basis.
• · We intend to rely in part on external sources of capital to fund future capital needs and, if we encounter difficulty in obtaining such capital, we may not be able to meet maturing obligations or make additional acquisitions.
• · Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to pay distributions to our stockholders.
• · We may not be able to generate sufficient cash flow to meet our debt service obligations.
• · Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions on our Common Stock or Preferred Stock.

Risks Related to Our Lending Operations

• · Our lending operations expose us to a high degree of risk associated with real estate.
• · Our loans secured by real estate and our real estate owned ("REO") properties are typically illiquid and their values may decrease.
• Our lending operations have an industry concentration, which may negatively impact our financial condition and results of operations.

U.S. Federal Income and Other Tax Risks

• · REIT annual distribution requirements may force us to forgo otherwise attractive opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our objectives and reduce our stockholders' overall return.
• · Our property taxes could increase due to property tax rate changes or reassessment, which would impact our cash flows.

Risks Related to Our Common Stock and Preferred Stock

• · We may issue shares of our Common Stock at prices below the then-current NAV per share of our Common Stock, which could materially reduce our NAV per share of our Common Stock.
• · The existing mechanism for the dual-listing of securities on Nasdaq and the TASE may be eliminated or otherwise altered such that we may be subject to additional regulatory burden and additional costs.
• · Our NAV is an estimate of the fair value of our properties and real estate-related assets and may not necessarily reflect realizable value.

Stockholders should carefully consider the risks described in this section and the other information included in this Annual Report on Form 10-K in evaluating the Company and our business. The information in this section should be read in conjunction with Part II, "Item 7-Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and related notes in Part II, "Item 8—Financial Statements and Supplementary Data" of this Annual Report on Form 10-K. If any of the risks described in this section actually occur, our business, financial condition and results of operations could be materially and adversely affected, actual results could differ materially from those reflected in forward-looking statements or from our historical results and stockholders may lose all or part of their investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. This discussion of risk factors includes many forward-looking statements. For cautions about relying on forwardlooking statements, please refer to the section entitled "Forward-Looking Statements" immediately prior to "Item I-Business" of this Annual Report on Form 10-K.

Risks Related to Our Business

Our future success depends on the performance of the Administrator and the Operator, their respective and their access to the investment professionals of CIM Group. We may not find suitable replacements if such key personnel or investment professionals leave the employment of the Administrator, the Operator or other applicable affiliates of CIM Group or if such key personnel or investment professionals otherwise become unavailable to us.

We rely on the Administrator to provide management and administration services to us, and CIM Urban relies completely on the Operator to provide CIM Urban with certain services.

Our executive officers also serve as officers or employees of the Operator or other applicable affiliates of CIM Group. The Administrator and the Operator have significant discretion as to the implementation of acquisitions and operating policies and strategies on behalf of us and CIM Urban. Accordingly, we believe that our success depends to a significant extent upon the efforts, experience, dillgence, skill and network of the officers and key personnel of the Administrator, the Operator and the other applicable affiliates of CIM Group. The departure of any of these officers or key personnel could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

We also depend on access to, and the diligence, skill and network of, business contacts of the professionals within CIM Group and the information and deal flow generated by its investment professionals in the course of their acquisitions and onsite property management and leasing activities. The departure of any of these individuals, or of a significant number of the investment professionals or principals of CIM Group, could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. We cannot guarantee that we will continue to have access to CIM Group's investment professionals or its information and deal flow.

If we seek to internalize the management functions provided pursuant to the Master Services Agreement and the Investment Management Agreement, we could incur substantial costs and lose certain key personnel.

The Board of Directors may determine that it is in our best interest to become self-managed by internalizing the functions performed by the Administrator and or the Operator and to terminate the Master Services Agreement and or the Investment Management Agreement, respectively. However, we do not have the unilateral right to terminate the Master Services Agreement and CIM Urban does not have the unilateral right to terminate the Investment Agreement, and neither the Administrator nor the Operator would be obligated to enter into an internalization transaction with us. There is no assurance that a mutually acceptable agreement with these entities as to the internalization could be reached.

The costs that would be incurred by us in any such internalization are uncertain and could be substantial. Inadequate management of an internalization transaction could cause us to incur excess costs or suffer deficiencies in our disclosure controls and procedures or our internal reporting. An internalization transaction may divert management's attention from effectively managing our assets. Further, following any internalization of our management functions, certain key employees may remain employees of the Administrator and the Operator or their respective affiliates instead of becoming our employees, especially if the Administrator and the Operator are not acquired by us.

Uninsured losses or losses in excess of our insurance coverage could materially adversely affect our financial condition and cash flows, and there can be no assurance as to future costs and the scope of coverage that may be available under insurance policies.

We carry commercial liability, special form/all risk and business interruption insurance on all of the properties in our portfolio. In addition, we carry directors' and officers' insurance. While we select policy specifications and insured limits that we believe are appropriate and adequate given the relative risk of loss, the cost of the coverage, and industry practice, there can be no assurance that we will not experience a loss that is uninsured or that exceeds policy limits.

Our business operations in California and Texas are susceptible to, and could be significantly affected by, adverse weather conditions and natural disasters such as earthquakes, tsunamis, hurricanes, wind, blizzards, floods, landslides, drought and fires. These adverse weather conditions and natural disasters could cause significant damage to the properties in our portfolio, the risk of which is enhanced by the concentration of our properties, by aggregate net operating income and square feet, in California. Our insurance may not be adequate to cover business interruption or losses resulting from adverse weather or natural disasters. We carry earthquake insurance on our properties in an amount and with deductibles and limitations that we deem to be appropriate. However, the amount of our earthquake insurance coverage may not be sufficient to cover losses from earthquakes in California. Furthermore, we may not carry insurance for certain losses, such as those caused by war or certain environmental conditions, such as mold or asbestos.

As a result of the factors described above, we may not have sufficient coverage against all losses that we may experience for any reason.

If we experience a loss that is uninsured or that exceeds policy limits, we could incur significant costs and lose the capital deployed in the damaged properties as well as the anticipated future cash flows from those properties. Further, if the damaged properties are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if the properties were irreparable. In addition, our properties may not be able to be rebuilt to their existing height or size at ther existing location under current land-use laws and policies. In the event that we experience a substantial or comprehensive loss of one of our properties, we may not be able to rebuild such property to its existing specifications and otherwise may have to upgrade such property to meet current code requirements. Any of the factors described above could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and or damage to our business relationships, all of which could negatively impact our financial results.

We face cybersecurity risks and risks associated with security breaches or disruptions, such as cyber-attacks or cyber intrusions over the Internet, malware, computer viruses, attachments to emails, social engineering and phishing schemes or persons inside our organization, the Operator and or Administrator. The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusions, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. The occurrence of a cyber incident may result in disrupted operations, misstated or unreliable financial data, misappropriation of assets, compromise or corruption of confidential information collected in the course of conducting our business, liability for stolen assess or information, increased cybersecurity protection and insurance costs, litigation, regulatory enforcement, damage to our tenant and stockholder relationships, material harm to our financial condition, cash flows and the market price of our securities or other adverse effects. Our Operator's and Administrator's IT networks and related systems are essential to the operations of our business and our ability to perform dayto-day operations (including managing our building systems). Our Operator and Administrator have implemented processes, procedures and internal controls to help mitigate cyber incidents, but these measures do not guarantee that a cyber incident involving our Operator or Administrator will not occur or that attempted security breaches or disruptions would not be successful or damaging. A cyber incident involving our Operator's IT networks and related systems could materially adversely impact our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

Our Operator, Administrator and their respective affiliates, in the course of providing onsite property management, leasing, accounting and or services to us, collect and retain personal information provided by our tenants and vendors. Our Operator, Administrator and their respective affiliates rely on computer systems to process transactions and manage our business. We can provide no assurance that the data security measures designed to protect confidential information on such systems established by our Operator, Administrator and their respective affiliates will be able to prevent unauthorized access to such personal information. There can be no assurance that their efforts to maintain the security of the information collected and their computer systems will be effective or that attempted security breaches or disruptions will not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and recognized until launched against a target, and, in some cases, are designed not be detected and, in fact, may not be detected. Accordingly, our Operator, Administrator and their respective affiliates may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk.

If we fail to maintain an effective system of internal control reporting, we may not be able to accurately report our financial results.

An effective system of internal control over financial reporting is necessary for us to provide reliable financial reports, prevent fraud and operate successfully as a public company. As part of our ongoing monitoring of internal controls, we may discover material weaknesses or significant deficiencies in our internal controls that we believe require remediation. If we discover such weaknesses, we will make efforts to improve our internal controls in a timely manner. Any system of internal controls, however well designed and operated, is based in part on certain assumptions and can only provide reasonable, not absolute, assurance that the objectives of the system are met. Any failure to maintain effective internal controls, or implement any necessary improvements in a timely manner, could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satsfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock, or cause us to not meet our reporting obligations, which could affect our ability to maintain our listings of Common Stock and Series L Preferred Stock on Nasdaq and the TASE. Ineffective internal controls could also cause holders of our securities to lose confidence in our reported financial information, which would likely have a negative effect on the trading price of our securities.

The outbreak of COVID-19 has negatively affected and will likely continue to negatively affect our business, financial condition, results of operations and cash flows.

The spread of COVID-19 in the United States and the resulting restrictions on and cancellations of travel, meetings and social gatherings has impacted, and is expected to continue to materially impact so long as the outbreak persists, the operations of our hotel in Sacramento, California. Based on current expectations, it is highly likely that the net operating income of our hotel will continue to be negative for the first half of 2021. As a result, contributions by the hotel to our funds from operations are expected to be significantly diminished when comparable periods that occurred prior to COVID-19.

.56@9C:CBH9BHG

&C5BGCF=;=B5H986MIGIB89FH<9-5!I5F5BH998&C5B*FC;F5A7CBG=GHDF=A5F=@MC:@C5BGHC6CFFCK9FG=BH<9 @=A=H98G9FJ=79<CGD=H5@=HMG97HCF
)IF6CFFCK9FG<5J9699B9LD9F=9B7=B;G=;B=:=75BHF98I7H=CBG=B75G<:@CK5GH<9HF5J9@5B8 @9=GIF9=B8IGHFM897@=B975IG986M)0#?<5GG9J9F9@M=AD57H98@=A=H98G9FJ=79<CGD=H5@=HMDFCD9FH=9G
.<9CJ9FK<9@A=B; A5>CF=HMC:CIF6CFFCK9FGF979=J98F9@=9:IB89FH<9CFCB5J=FIG=8,9@=9:5B87CBCA=7-97IF=HM7HH<9T,-7HU 9D9B8=B;IDCBH<9@9B;H<C:7CBH=BI5H=CBC:A5F?9H8=GFIDH=CBG:CFH<9@=A=H98G9FJ=79<CGD=H5@=HM=B8IGHFMK9A5M7CBH=BI9 HC<5J9588=H=CB5@=B7F95G9G=BCIF@C5B@CGGF9G9FJ9G5B8I@H=A5H9@M5B=B7F95G9=B@C5B@CGG9G5B8GI7<@CGG9GA5M69A5H9F=5@

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

)0#?CF5BM:IHIF9D5B89A=77CI@85@GC<5J9A5H9F=5@5B858J9FG99::97HGCBCIF56=@=HMHCGI779GG:I@@MCD9F5H9 5B8CBCIF:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG5B875G<:@CKG8I9HC5ACB;CH<9F:57HCFG

• P 57CAD@9H9CFD5FH=5@7@CGIF9C:CFCH<9FCD9F5H=CB5@=GGI9G5HCB9CFACF9C:CIFDFCD9FH=9GF9GI@H=B;:FCA;CJ9FBA9BH CFH9B5BH57H=CB
• P F98I79897CBCA=757H=J=HMG9J9F9@M=AD57H=B;CIFH9B5BHG6IG=B9GG9G:=B5B7=5@7CB8=H=CB5B8@=EI=8=HMCF75IG=B;CB9 CFACF9C:CIFH9B5BHGHC69IB56@9HCA99HH<9=FC6@=;5H=CBGHCIG=B:I@@CF5H5@@CFHCCH<9FK=G9G99?AC8=:=75H=CBG C:GI7<C6@=;5H=CBG
• P 8=::=7I@HM5779GG=B;896H5B89EI=HM75D=H5@CB5HHF57H=J9H9FAGCF5H5@@5B85G9J9F98=GFIDH=CB5B8=BGH56=@=HM=BH<9 ;@C65@:=B5B7=5@A5F?9HGCF89H9F=CF5H=CBG=B7F98=H5B8:=B5B7=B;7CB8=H=CBGK<=7<A5M5::97HCIF5779GGHC75D=H5@ B979GG5FMHC:IB86IG=B9GGCD9F5H=CBGCF588F9GGA5HIF=B;@=56=@=H=9GCB5H=A9@M65G=GCFCIFH9B5BHG56=@=HMHC:IB8 H<9=F6IG=B9GGCD9F5H=CBG5B8A99HH<9=FC6@=;5H=CBGHCIG
• P 5BM=AD5=FA9BH=BJ5@I9C:CIFH5B;=6@9CF=BH5B;=6@95GG9HGH<5H7CI@869F97CF8985G5F9GI@HC:K95?9F97CBCA=7 7CB8=H=CBG
• P 5;9B9F5@897@=B9=B6IG=B9GG57H=J=HM5B889A5B8:CFF95@9GH5H9HF5BG57H=CBGK<=7<7CI@858J9FG9@M5::97HCIF56=@=HM CF89G=F9HC;FCKCIFDCFH:C@=CC:DFCD9FH=9G5B8
• P B9;5H=J9=AD57HGHCH<97F98=HEI5@=HMC:CIFH9B5BHG5B85BMF9@5H98=B7F95G9=BCIF5@@CK5B79:CF8CI6H:I@577CIBHGCF 57HI5@7C@@97H=CBG

1<=@9G9J9F5@7CIBHF=9G5GK9@@5G79FH5=BGH5H9G=BH<9/B=H98-H5H9G<5J969;IBHC@=:HDI6@=7<95@H<F9GHF=7H=CBGK=H< H<9J=9KHCF9CD9B=B;H<9=F97CBCA=9GF97IFF=B;)0#?CIH6F95?G<5J9@98HCH<9F9?=BHFC8I7H=CBC:GI7<F9GHF=7H=CBG=B 79FH5=BGH5H9G=BH<9/B=H98-H5H9G5B8;@C65@@M5B8=G@=?9@MHC7CBH=BI9HC@958HCH<9F9?=BHFC8I7H=CBC:GI7<F9GHF=7H=CBG 9@G9K<9F9
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
.<989@5M=B8=GHF=6IH=B;H<9J577=B9G7CI@8@958D9CD@9HC7CBH=BI9HCG9@:?=GC@5H95B8BCHD5FH=7=D5H9=BH<9 97CBCAM5HDF9?D5B89A=7@9J9@G:CF5DFC@CB;98D9F=C8C:H=A9
J9B5:H9FH<9)0#?D5B89A=7GI6G=89GH<9/
- 97CBCAM5B8ACGHCH<9FA5>CF;@C65@97CBCA=9GA5M7CBH=BI9HC9LD9F=9B7997CBCA=7G@CK8CKB

.<99LH9BHHCK<=7<)0#?K=@@7CBH=BI9HC=AD57HH<9CAD5BMVGCD9F5H=CBG5B8H<CG9C:=HGH9B5BHG5B86IG=B9GG D5FHB9FGK=@@89D9B8CB:IHIF989J9@CDA9BHGK<=7<5F9<=;<@MIB79FH5=B5B875BBCH69DF98=7H98K=H<7CB:=89B79=B7@I8=B;H<9 G7CD9G9J9F=HM5B88IF5H=CBC:)0#?H<957H=CBGH5?9BHC7CBH5=B)0#?CFA=H=;5H9=HG=AD57H5B8H<98=F97H5B8 =B8=F97H97CBCA=79::97HGC:)0#?5B8H<9F9@5H987CBH5=BA9BHA95GIF9G
(9J9FH<9@9GG)0#?DF9G9BHGA5H9F=5@ IB79FH5=BHM5B8F=G?K=H<F9GD97HHCH<9CAD5BMG6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG5B875G<:@CKG 'CF9CJ9FA5BMF=G?:57HCFGG9H:CFH<=BH<=GBBI5@,9DCFHCB CFA?%G<CI@869=BH9FDF9H985G<9=;<H9B985G5F9GI@HC:H<9 =AD57HC:)0#
'5B5;9A9BHK=@@7CBH=BI9HCACB=HCFH<9=AD57HC:)0#?HCH<9CAD5BMVG6IG=B9GG:=B5B7=5@ 7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CK5B8C77ID5B7M

*'! ?2#0&'/+%*#5*#&#0&/#;%106+07'61*#8'5+)0+(+%#06+/2#%6510914-2.#%'24#%6+%'5#0&6*15'%*#0)'5 1416*'41((+%'52#%'76+.+<#6+1064'0&5%17.&+/2#%6174\$75+0'55

.9ADCF5FM7@CGIF9GC:6IG=B9GG9G5B8GH5M=BD@579CF89FG5B8H<9F9GI@H=B;F9ACH9KCF?=B;5FF5B;9A9BHG:CFBCB? 9GG9BH=5@D9FGCBB9@=BF9GDCBG9HCH<9)0#?D5B89A=7A5MF9GI@H=B@CB;?H9FA7<5B;98KCF?DF57H=79GH<5H7CI@8 B9;5H=J9@M=AD57HIG5B8CIF6IG=B9GG
CF9L5AD@9H<9=B7F95G9858CDH=CBC:5B8:5A=@=5F=HMK=H<F9ACH9KCF?DF57H=79G5B8 H<9F979BH=B7F95G9=BH9B5BHGG99?=B;HCGI6@95G9H<9=F@95G98GD5797CI@8F9GI@H=B897F95G9889A5B8:CFC::=79GD579
IFH<9F DF=CFHCH<9CBG9HC:H<9)0#?D5B89A=7H9@97CAAIH=B;:@9L=6@9KCF?G7<98I@9GCD9BKCF?GD579G5B8H9@97CB:9F9B7=B; <58697CA9=B7F95G=B;@M7CAACB5B8H<9F9K5G5B=B7F95G=B;HF9B85ACB;GCA96IG=B9GG9GHCIH=@=N9G<5F98C::=79GD5795B8 7C?KCF?=B;GD579G
G5F9GI@HH<9F9K5G5;9B9F5@HF9B8=BC::=79F95@9GH5H9:CFH9B5BHGHC897F95G9H<9GD579H<9MC77IDMD9F 9AD@CM99

:9=H<9FCF6CH<C:H<CG9HF9B8GK9F9HC7CBH=BI9CF5779@9F5H9CIFH9B5BHGA5M9@97HHCBCHF9B9KH<9=F@95G9GCFHC F9B9KH<9A:CF@9GGGD579H<5BH<9M7IFF9BH@MC77IDMK<=7<7CI@8=B7F95G9J575B7MD@5798CKBK5F8DF9GGIF9CBC77ID5B7M F9BH5@F5H9G5B8=B7CA95B8DFCD9FHMJ5@I5H=CB

.<9B998HCF97CB:=;IF9@95G98C::=79GD5799=H<9F=BF9GDCBG9HCH<9)0#? D5B89A=7HCB9KH9B5BHGVB998GHCAC8=:MIH=@=N5H=CBCF:CFCH<9FF95GCBGA5M=AD57HGD579F9EI=F9A9BHG5B85@GCA5M F9EI=F9IGHCGD9B8=B7F95G985ACIBHG:CFH9B5BH=ADFCJ9A9BHG

:GI6GH5BH=5@F97CB:=;IF5H=CBC:H<9H9B5BHVGGD579=GF9EI=F98 H<9H9B5BHA5M:=B8=HACF958J5BH5;9CIGHCF9@C75H9H<5BHCF9B9K=HG@95G95B8F9BCJ5H9H<99L=GH=B;GD579

@@C:H<9G9:57HCFG 7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCIFCFCIF56=@=HMHC G5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

'8B:B'4;0C43C>>=5;82CB>5=C4A4BC

'+6*'46*'#56'4'48+%'5)4''/'060146*'08'56/'06#0#)'/'06)4''/'06/#;\$'6'4/+0#6'&\$;75':%'26+0 .+/+6'&%+4%7/56#0%'5(14%#75'+06*'%#5'1(6*'#56'4'48+%'5)4''/'06#0&6*'#56'4'48+%'5)4''/'06/#;\$' #55+)0'&\$;6*'&/+0+564#614+0%'46#+0%+4%7/56#0%'59+6*176174%105'06'+6*'414\$16*1(9*+%*/#;*#8'#/#6'4+#. #&8'45''(('%61075

195B8CIF@9B8=B;GI6G=8=5F=9G5F9D5FH=9GHCH<9'5GH9F-9FJ=79G;F99A9BHDIFGI5BHHCK<=7<H<98A=B=GHF5HCF DFCJ=89GCF5FF5B;9G:CFCH<9FG9FJ=79DFCJ=89FGHCDFCJ=89A5B5;9A9BH5B858A=B=GHF5H=J9G9FJ=79GHCIG5B85@@C:CIF8=F97H 5B8=B8=F97HGI6G=8=5F=9G
195F9C6@=;5H98HCD5MH<98A=B=GHF5HCFH<9#B79BH=J9 99G99T#H9ASIG=B9GGS'5GH9F-9FJ=79G ;F99A9BHU5B8A5F?9HF5H9HF5BG57H=CB:99G:CFHF5BG57H=CB5@5B8CH<9FG9FJ=79GH<5HH<98A=B=GHF5HCF9@97HGHCDFCJ=89HCIG *IFGI5BHHCH<9H9FAGC:H<9'5GH9F-9FJ=79G;F99A9BHH<98A=B=GHF5HCF<5GH<9F=;<HHCDFCJ=895BMHF5BG57H=CB5@G9FJ=79GHC IGH<5HK9KCI@8CH<9FK=G99B;5;95H<=F8?D5FHMHCDFCJ=89

.<9'5GH9F-9FJ=79G;F99A9BHF9B9KG5IHCA5H=75@@M957<M95F
.<98A=B=GHF5HCFA5M5GG=;BH<9'5GH9F-9FJ=79G ;F99A9BHK=H<CIHCIF7CBG9BHHCCB9C:=HG5::=@=5H9GCF5B9BH=HMH<5H=G5GI779GGCFH<FCI;<A9F;9FCF57EI=G=H=CBC:H<9 6IG=B9GGC:H<98A=B=GHF5HCF
19;9B9F5@@MA5MH9FA=B5H9H<9'5GH9F-9FJ=79G;F99A9BHCB@M=BH<99J9BHC:5A5H9F=5@ 6F957<:F5I8;FCGGB9;@=;9B79CFK=@@:I@A=G7CB8I7H6MCF=B79FH5=B@=A=H987=F7IAGH5B79G57<5B;9C:7CBHFC@C:H<9 8A=B=GHF5HCFH<5HCIF=B89D9B89BH8=F97HCFG89H9FA=B9HC69A5H9F=5@@M89HF=A9BH5@HCIG5B8CIFGI6G=8=5F=9G5G5K<C@9
19 8CBCH<5J9H<9F=;<HHCH9FA=B5H9H<9'5GH9F-9FJ=79G;F99A9BHGC@9@M:CFH<9DCCFD9F:CFA5B79C:CIFCD9F5H=CBG

B588=H=CB #'/F65B8C9GBCH<5J9H<9F=;<HHCH9FA=B5H9H<9#BJ9GHA9BH'5B5;9A9BH;F99A9BHIB89F5BM7=F7IAGH5B79G

'CF9CJ9F5BMF9ACJ5@C:/F65B!*8A=B=GHF5HCF5GA5B5;9FC:#'/F65B!*DIFGI5BHHCH<9'5GH9F-9FJ=79G ;F99A9BHCFH<9#'/F65B*5FHB9FG<=D;F99A9BHKCI@8BCH5::97HH<9F=;<HGC:H<98A=B=GHF5HCFIB89FH<9'5GH9F-9FJ=79G ;F99A9BHCFH<9)D9F5HCFIB89FH<9#BJ9GHA9BH'5B5;9A9BH;F99A9BH
77CF8=B;@MH<98A=B=GHF5HCFKCI@87CBH=BI9HC DFCJ=89H<95G9-9FJ=79G5B8F979=J9H<95G9-9FJ=79 995B8H<98A=B=GHF5HCFCFH<95DD@=756@9G9FJ=79DFCJ=89FKCI@8 7CBH=BI9HCDFCJ=89H<9HF5BG57H=CB5@G9FJ=79G5B8F979=J9F9@5H98HF5BG57H=CB:99GIB89FH<9'5GH9F-9FJ=79G;F99A9BH5B8 H<9)D9F5HCFKCI@87CBH=BI9HCF979=J9H<9A5B5;9A9BH:99IB89FH<9#BJ9GHA9BH'5B5;9A9BH;F99A9BH

*'&/+0+564#614#0&2'4#614#4''06+6.'&614'%'+8'(''5(146*'5'48+%'56*';2418+&'4')#4&.'551(1742'4(14/#0%' 9*+%*/#;4'&7%'6*'+4+0%'06+8'61&'816'6+/'#0&4'5174%'5611742146(1.+1

*IFGI5BHHCH<9'5GH9F-9FJ=79G;F99A9BHH<98A=B=GHF5HCF=G9BH=H@98HCF979=J9588=H=CB5@:99G:CFH<9DFCJ=G=CBC: 79FH5=BHF5BG57H=CB5@5B8CH<9FG9FJ=79GCH<9FH<5BH<95G9-9FJ=79G5H:5=FA5F?9HF5H9G5DDFCJ986MCIF=B89D9B89BH 8=F97HCFG
88=H=CB5@@MH<9)D9F5HCF=G9BH=H@98HCF979=J95B5GG9HA5B5;9A9BH:9965G98IDCBH<958>IGH98:5=FJ5@I9C:#' /F65BVG5GG9HG=B7@I8=B;5BM5GG9HG57EI=F986M#'/F65B=BH<9:IHIF9
-99T#H9ASIG=B9GGS#BJ9GHA9BH'5B5;9A9BH ;F99A9BH
U.<98A=B=GHF5HCFVG5B8H<9)D9F5HCFVG9BH=H@9A9BHHCGI6GH5BH=5@BCB?D9F:CFA5B7965G987CAD9BG5H=CBA=;<H F98I79H<9=F=B79BH=J9HC89JCH9H=A95B89::CFHHCG99?=B;DFC:=H56@9CDDCFHIB=H=9G:CFCIFDCFH:C@=C

*'2'4#614/#;70&'46#-'64#05#%6+1056*#6#4'/16+8#6'&+09*1.'14+02#46\$;#&'5+4'61+0%4'#5'+65%1/2'05#6+10

.<9)D9F5HCFVG:99G5F965G98CBH<958>IGH98:5=FJ5@I9C:#'/F65BVG5GG9HG=B7@I8=B;5BM5GG9HG57EI=F986M#' /F65B=BH<9:IHIF9K<=7<A5MDFCJ=895B=B79BH=J9:CFH<9)D9F5HCFHC89D@CMCIF75D=H5@HC5GG9HGH<5H5F9F=G?=9FH<5BK9 KCI@8CH<9FK=G957EI=F9F9;5F8@9GGC:H<95BH=7=D5H98@CB;?H9FAD9F:CFA5B79C:GI7<5GG9HG
CF=BGH5B79=:#'/F65BCFK9 CB=HG69<5@:=B7IFG896HCFIG9G@9J9F5;9HC57EI=F95B5GG9HH<958>IGH98:5=FJ5@I9C:CIF5GG9HGK=@@=B7F95G96M5B5ACIBH ;F95H9FH<5BH<95ACIBHC:75G<IG98=BGI7<@9J9F9857EI=G=H=CBK<=7<@958GHC;F95H9F7CAD9BG5H=CBD5M56@9HCH<9)D9F5HCF #BH<=GA5BB9FH<9)D9F5HCFA5MG99?HCA5L=A=N9=HG7CAD9BG5H=CB6MF97CAA9B8=B;589D@CMA9BHC:75D=H5@HC5GG9HGH<5H 5F9BCHB979GG5F=@M=BH<969GH=BH9F9GHC:CIFGHC7?<C@89FG
.<9)D9F5HCFA5M5@GCF97CAA9B8H<98=GDCG=H=CBC:5GG9HGH<5H5F9 69B9:=7=5@HC#'/F65BVGCD9F5H=CBG=BCF89FHC:IB8GI7<57EI=G=H=CBG
CF58=G7IGG=CBC:H<96FC588=G7F9H=CBH<5HA5M69 9L9F7=G986MH<9)D9F5HCF=BCIF6IG=B9GGG99TS57<C:H<98A=B=GHF5HCF5B8)D9F5HCFDFCJ=89GG9FJ=79GHCIGIB89F6FC58 A5B85H9G5B8CIFC5F8C:=F97HCFGA5MBCHB979GG5F=@M69=BJC@J98=B957<57EI=G=H=CB8=GDCG=H=CBCF:=B5B7=B;897=G=CB A5896MH<98A=B=GHF5HCFCF)D9F5HCFU69@CK

#%*1(6*'&/+0+564#614#0&2'4#6142418+&'55'48+%'5617570&'4\$41#&/#0&#6'5#0&1741#4&1(+4'%6145/#;016 0'%'55#4+.;\$'+081.8'&+0'#%*#%37+5+6+10&+5215+6+10 14(+0#0%+0)&'%+5+10/#&'\$;6*'&/+0+564#614142'4#614

57<C:H<98A=B=GHF5HCFIB89FH<9'5GH9F-9FJ=79G;F99A9BH5B8H<9)D9F5HCFIB89FH<9#BJ9GHA9BH'5B5;9A9BH ;F99A9BH<5G6FC588=G7F9H=CB5B85IH<CF=HMCJ9FCIF85M?HC?85MCD9F5H=CBG5B889D@CMA9BHC:CIF75D=H5@=B5GG9HG
1<=@9 CIFC5F8C:=F97HCFGD9F=C8=75@@MF9J=9KGH<9D9F:CFA5B79C:CIF6IG=B9GG9GCIFC5F8C:=F97HCFG8C9GBCHF9J=9K5@@ 57H=J=H=9G7CB8I7H986MH<98A=B=GHF5HCF5B8H<9)D9F5HCF5B8A5MBCHF9J=9K79FH5=BDFCDCG9857EI=G=H=CBG8=GDCG=H=CBGCF H<9=AD@9A9BH5H=CBC:CH<9FGHF5H9;=7=B=H=5H=J9G69:CF9H<9MC77IF

B588=H=CB=BF9J=9K=B;CIF6IG=B9GGCD9F5H=CBGCIF 8=F97HCFGA5MF9@MCB=B:CFA5H=CBDFCJ=898HCH<9A6MH<98A=B=GHF5HCFCFH<9)D9F5HCF5GH<975G9A5M69

.<9 8A=B=GHF5HCFCFH<9)D9F5HCFA5M75IG9IGHC9BH9F=BHCG=;B=:=75BHHF5BG57H=CBGCFIB89FH5?9G=;B=:=75BH57H=J=H=9GH<5HA5M69 8=::=7I@HCF=ADCGG=6@9HCIBK=B89L=HCFCH<9FK=G9F9A98=5H9
57<C:H<98A=B=GHF5HCF5B8H<9)D9F5HCF<5G;F95H@5H=HI89=B H<9=AD@9A9BH5H=CBC:CIFGHF5H9;=9G=B7@I8=B;89H9FA=B=B;H<9HMD9GC:5GG9HGH<5H5F95DDFCDF=5H9:CFIG
.<9897=G=CBGC:H<9 8A=B=GHF5HCF5B8H<9)D9F5HCF7CI@8H<9F9:CF9F9GI@H=B@CGG9GCFF9HIFBGH<5H5F9GI6GH5BH=5@@M69@CKCIF9LD97H5H=CBGK<=7< 7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:M CIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

*'2'4#6146*'&/+0+564#614#0&6*'+44'52'%6+8'#((+.+#6'5'0)#)'+04'#.'56#6'#%6+8+6+'56*#6%17.&%1/2'6'9+6*75#0& 17457\$5+&+#4+'59*+%*%17.&4'57.6+0&'%+5+1056*#6#4'016+06*'\$'56+06'4'5651(174561%-*1.&'45

.<9#BJ9GHA9BH'5B5;9A9BH;F99A9BHK=H<H<9)D9F5HCF5B8H<9'5GH9F-9FJ=79G;F99A9BHK=H<H<98A=B=GHF5HCF 8CBCHDF9J9BHH<9)D9F5HCFCFH<98A=B=GHF5HCF5G5DD@=756@95B8H<9=FF9GD97H=J95::=@=5H9G:FCACD9F5H=B;588=H=CB5@F95@ 9GH5H95GG9HGCFD5FH=7=D5H=B;=BCH<9FF95@9GH5H9CDDCFHIB=H=9GGCA9C:K<=7<7CI@87CAD9H9K=H<IG5B8CIFGI6G=8=5F=9G
.<9 )D9F5HCFH<98A=B=GHF5HCF5B8H<9=FF9GD97H=J95::=@=5H9GCD9F5H9F95@9GH5H95GG9HG5B8D5FH=7=D5H9=B588=H=CB5@F95@9GH5H9 57H=J=H=9G<5J=B;C6>97H=J9GH<5HCJ9F@5DK=H<CIFCKB5B8A5MH<IG:5797CB:@=7HG=BH<9CD9F5H=CB5B85@@C75H=CBC:F95@9GH5H9 CDDCFHIB=H=9G69HK99BIGCBH<9CB9<5B85B8GI7<CH<9FF95@9GH5H9CD9F5H=CBG5B857H=J=H=9GCBH<9CH<9F<5B8
@@C75H=CBC: F95@9GH5H9CDDCFHIB=H=9G=G5HH<98=G7F9H=CBC:H<9)D9F5HCF5B8CFH<98A=B=GHF5HCF5B8H<9F9=GBC;I5F5BH99H<5HH<=G 5@@C75H=CBK=@@69A589=BH<969GH=BH9F9GHC:CIFGHC7?<C@89FG

.<9F9A5M697CB:@=7HGC:=BH9F9GH=B5@@C75H=B;F95@9GH5H9CDDCFHIB=H=9GHC#'/F65B5B8CH<9F:IB8GJ9<=7@9G5B8 J9BHIF9GCD9F5H986MH<9)D9F5HCF
CF9L5AD@9H<9)D9F5HCFG9FJ9G5GH<9CD9F5HCFC:DF=J5H9:IB8G:CFA98HC89D@CM75D=H5@=B F95@9GH5H95B8F95@9GH5H9?F9@5H985GG9HG@C75H98=BA9HFCDC@=H5B5F95GH<5H#'!FCID<5G5@F958MEI5@=:=98
.<9F9A5M695 G=;B=:=75BHCJ9F@5D=BH<95GG9HG5B8GHF5H9;=9G69HK99BIG5B8GI7<:IB8G5B8A5BMC:H<9G5A9=BJ9GHA9BHD9FGCBB9@K=@@ DFCJ=89G9FJ=79GHC6CH<9BH=H=9G
IFH<9FH<9)D9F5HCF5B8=HG5::=@=5H9GA5M=BH<9:IHIF9CD9F5H9:IB8GJ9<=7@9G5B8J9BHIF9G H<5H5J9CJ9F@5DD=B;C697H=J9GK=H<#'/F65B5B8H<9F9:CF9A5M7CAD9H9K=H<#'/F65B:CFCDDCFHIB=H=9G
.<956=@=HMC: H<9)D9F5HCFH<98A=B=GHF5HCF5B8H<9=FC::=79FG5B89AD@CM99GHC9B;5;9=BCH<9F6IG=B9GG57H=J=H=9G=B7@I8=B;H<9CD9F5H=CB C:CH<9FJ9<=7@9GCD9F5H986M#'!FCIDCF=HG5::=@=5H9GA5MF98I79H<9H=A9H<9)D9F5HCF5B8H<98A=B=GHF5HCFGD9B8 A5B5;=B;CIF57H=J=H=9G

'46#+01(174&+4'%6145#0&':'%76+8'1((+%'45/#;(#%'%10(.+%651(+06'4'564'.#6'&61215+6+1056*';*1.&9+6*6*'2'4#614 6*'&/+0+564#6144172#0&6*'+4#((+.+#6'59*+%*%17.&4'57.6+0&'%+5+1056*#6#4'016+06*'\$'56+06'4'561(174 561%-*1.&'45

-CA9C:CIF8=F97HCFG5B89L97IH=J9C::=79FG5F95@GCD5FH?CKB9FGC::=79FG5B8CF8=F97HCFGC:H<9)D9F5HCFH<9 8A=B=GHF5HCF#'!FCID5B8CFH<9=FF9GD97H=J95::=@=5H9G
G5F9GI@HGI7<8=F97HCFG5B89L97IH=J9C::=79FGA5MCK9 :=8I7=5FM8IH=9GHCH<9G9J5F=CIGCH<9F9BH=H=9G5B8H<9=F9EI=HMCKB9FGH<5HA5M:FCAH=A9HCH=A97CB:@=7HK=H<H<98IH=9GGI7< D9FGCBGCK9HCIG
IFH<9FH<9G9AI@H=D@9F9GDCBG=6=@=H=9GA5M7F95H97CB:@=7HGC:=BH9F9GH:CFH<9G9=B8=J=8I5@G=:H<9M5F9 DF9G9BH98K=H<CDDCFHIB=H=9GH<5HA5M69B9:=HIG5B8CIFCH<9F5::=@=5H9G
.<9G9=B8=J=8I5@GA5M69=B79BH=J=N98HC5@@C75H9

opportunities to other entities rather than to us. Their affiliated entities could result in actions or inactions that are detrimental to our business, strategy and opportunities.

The business of CIM Urban is managed by Urban GP Administrator and we agreed in the Master Services Agreement to appoint an affiliate of CIM Group as the manager of the general partner of CIM Urban, and the general partner of CIM Urban may only be removed from such position under limited circumstances as provided in the CIM Urban Partnership Agreement.

Pursuant to the Master Services Agreed to appoint an affiliate of CIM Group as the manager of the general partner of CIM Urban. While currently that designated entity, Urban GP Administrator, is an affiliate of CIM Group, there can be no assurances that a different entity would not be appointed the manager of the general partner of CIM Urban in the future. Moreover, we may only remove the Urban GP Administrator as the manager of CIM Urban GP for "cause" (as defined in the Master Services Agreement). Removal for "cause" also requires the approval of the holders of at least 66 2/3% of our outstanding shares of Common Stock. Upon removal, a replacement manager will be appointed by the independent directors.

Subject to the limitations set forth in the governing documents of CIM Urban and CIM Urban GP, Urban GP Administrator is given the power and authority under the Master Services Agreement to management, business and affairs of and to make all decisions to be made by or on behalf of ( ) CIM Urban GP and (2) CIM Urban. Subject to the other terms of the CIM Urban Partnership Agreement, CIM Urban GP has broad discretion over the operations of CM Urban. Accordingly, while we own indirectly all of the partnership interests in CIM Urban, except as set forth in the Master Services Agreement and the rights specifically reserved to limited partners by the CIM Urban Partnershand applicable law, we will have no part in the management and control of CIM Urban.

Risks Related to Our Organizational Structure

Certain provisions of the MGCL could inhibit changes in control.

Certain provisions of the MGCL, if applied to us, would have the effect of inhibiting a third-party from making a proposal to acquire us or impeding a change of control under circumstances that otherwise could provide our stockholders with the opportunity to realize a premium over the then-prevailing market price of our Common Stock, including:

• · "business combination" provisions that, subject to limitations, prohibit certain business combinations between us and an "interested stockholder" (defined generally as any person who beneficially owns, directly, 10% or more of the voting power of our shares or an affiliate thereof) for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter impose special appraisal rights and special stockholder voting requirements on these combinations; and
• · "control share" provisions that "control shares" of our Company (defined as shares which, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a "control share acquisition" (defined as the direct or indirect acquisition of ownership or control of "control shares") have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares.

We have elected to opt out of these provisions of the MGCL, in the case of the business combination provisions of the MGCL, by resolution of our Board of Directors and, in the case of the control share provisions of the MGCL, pursuant to a provision in our bylaws. However, our Board of Directors may by resolution elect to repeal the foregoing opt-outs from the business combination provisions of the MGCL and we may, by amendment to our bylaws, opt in to the control share provisions of the MGCL in the future.

Our charter, bylaws, the partnership agreement for CIM Urban and Maryland law also contain other provisions that may delay, defer or prevent a transaction or a change of control that might involve a premium price for our Common Stock or otherwise be in the best interest of our stockholders.

The Operator may change its acquisition process, or elect not to follow it, without stockholder consent at any time, which may adversely affect returns on our assets.

While we are principally focused on Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets), we may also participate more actively in other CIM Group real estate strategies and product types, including, but not limited to, multi-family residential and or real estate debt, in order to broaden our participation in CIM Group's platform and capabilities for the benefit of all classes of GHC7?<C@89FG
.<=GA5M=B7@I89K=H<CIH@=A=H5H=CB9B;5;=B;=BF95@9GH5H989J9@CDA9BH57H=J=H=9G5GK9@@5G=BJ9GH=B;=BCH<9F DFC8I7HHMD9G8=F97H@MG=89?6M?G=89K=H<CB9CFACF9:IB8GC:#'!FCIDH<FCI;<8=F97H89D@CMA9BHC:75D=H5@=B5#' !FCIDF95@9GH5H9CF896H:IB8CF89D@CM=B;75D=H5@=BCFCF=;=B5H=B;@C5BGH<5H5F9G97IF988=F97H@MCF=B8=F97H@M6MDFCD9FH=9G DF=A5F=@M@C75H98=B+I5@=:=98CAAIB=H=9GH<5HA99HCIFGHF5H9;M
-I7@C5BGA5M=B7@I89@=A=H985B8CFBCBF97CIFG9IB=CF A9NN5B=B9?BCH9CFB8@=9B5B8G9B=CF57EI=G=H=CB6F=8;9CFF9DCG=H=CB=B;@C5BG
-HC7?<C@89FGK=@@BCH<5J95BM5DDFCJ5@ F=;<HGK=H<F9GD97HHC5BM9LD5BG=CBCF7<5B;9=BGHF5H9;=9GCF:IHIF97CADCG=H=CBC:CIF5GG9HG
)IF)D9F5HCF89H9FA=B9GCIF DC@=7=9GF9;5F8=B;89D@CMA9BHC:75D=H5@=BHCF95@9GH5H95GG9HG:=B5B7=B;;FCKH<5B8896H75D=H5@=N5H=CB
)IF)D9F5HCFA5M 7<5B;9H<9G95B8CH<9FDC@=7=9GK=H<CIH5JCH9C:CIFGHC7?<C@89FG

B588=H=CBH<9F975B69BC5GGIF5B79H<5HH<9)D9F5HCFK=@@ :C@@CK=HG57EI=G=H=CBDFC79GG=BF9@5H=CBHCH<9=89BH=:=75H=CB5B857EI=G=H=CBCFCF=;=B5H=CBC:DFCGD97H=J95GG9HG

G5F9GI@HH<9 B5HIF9C:H<97CADCG=H=CBC:CIF5GG9HG7CI@87<5B;9K=H<CIHH<97CBG9BHC:CIFGHC7?<C@89FG
<5B;9G=BH<9)D9F5HCFVG 57EI=G=H=CBDFC79GG5B8CFD<=@CGCD<MA5MF9GI@H=B5ACB;CH<9FH<=B;G=B:9F=CF8I98=@=;9B795B8HF5BG57H=CBGH5B85F8GK<=7< A5M58J9FG9@M5::97HH<9D9F:CFA5B79C:CIF5GG9HG

:K95F9IBGI779GG:I@=B9LD5B8=B;=BHCB9KF95@9GH5H957H=J=H=9GCFCIF 7<5B;9G=BGHF5H9;=9GCF:IHIF989D@CMA9BHC:CIF75D=H5@HIFBCIHHC69IBGI779GG:I@=H7CI@8<5J95A5H9F=5@58J9FG99::97HCB CIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHC A5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

*'219'41(6*'1#4&1(+4'%6145614'81-'174'.'%6+109+6*176561%-*1.&'4#22418#./#;%#75'#&8'45' %105'37'0%'561174561%-*1.&'45

)IFCF;5B=N5H=CB5@8C7IA9BHGD9FA=HCIFC5F8C:=F97HCFGHCF9JC?9CFCH<9FK=G9H9FA=B5H9CIF,#.9@97H=CB K=H<CIHH<95DDFCJ5@C:CIFGHC7?<C@89FG=:H<9C5F8C:=F97HCFG89H9FA=B9GH<5H=H=GBC@CB;9F=BCIF69GH=BH9F9GHHC7CBH=BI9 HCEI5@=:M5G5,#.

BGI7575G9K9KCI@8697CA9GI697HHC/

:989F5@GH5H95B8@C75@=B7CA9H5LCBCIFB9HH5L56@9 =B7CA95B8K9KCI@8BC@CB;9F69F9EI=F98HC8=GHF=6IH9ACGHC:CIFB9HH5L56@9=B7CA9HCCIFGHC7?<C@89FGK<=7<7CI@8<5J9 58J9FG97CBG9EI9B79GCBH<9HCH5@F9HIFBHCCIF<C@89FGC:CAACB-HC7?

*'14174%*#46'4/#;.+/+66*'#\$+.+6;1(174561%-*1.&'451475614'%18'410#%.#+/#)#+056#&+4'%614141((+%'4 9*10').+)'06.;%#75'57561+0%74.155'5

.<9'!&DFCJ=89GH<5H58=F97HCF<5GBC@=56=@=HM=BGI7<75D57=HM=:<9CFG<9D9F:CFAG<=GCF<9F8IH=9G=B;CC8 :5=H<=B5A5BB9F<9CFG<9F95GCB56@M69@=9J9GHC69=BCIF69GH=BH9F9GHG5B8K=H<H<975F9H<5H5BCF8=B5F=@MDFI89BHD9FGCB=B 5@=?9DCG=H=CBKCI@8IG9IB89FG=A=@5F7=F7IAGH5B79G
8=F97HCFK<CD9F:CFAG<=GCF<9F8IH=9G=B577CF85B79K=H<H<9 :CF9;C=B;GH5B85F8GG<CI@8BCH69@=56@9HCIGCF5BMCH<9FD9FGCB:CF:5=@IF9HC8=G7<5F;9<=GCF<9FC6@=;5H=CBG5G58=F97HCF

B588=H=CBCIF7<5FH9FDFCJ=89GH<5HCIF8=F97HCFG5B8C::=79FGK=@@BCH69@=56@9HCIGCFCIFGHC7?<C@89FG:CFACB9H5FM 85A5;9GIB@9GGH<98=F97HCFCFC::=79F57HI5@@MF979=J985B=ADFCD9F69B9:=HCFDFC:=H=BACB9MDFCD9FHMCFG9FJ=79GCF=G 58>I8;98HC69@=56@9HCIGCFCIFGHC7?<C@89FG65G98CB5:=B8=B;H<5H<=GCF<9F57H=CBCF:5=@IF9HC57HK5GH<9F9GI@HC:57H=J9 5B889@=69F5H98=G<CB9GHM5B8K5GA5H9F=5@HCH<975IG9C:57H=CB58>I8=75H98=BH<9DFC7998=B;

)IF7<5FH9F5B86M@5KG5@GC F9EI=F9IGHCH<9A5L=AIA9LH9BHD9FA=HH986M'5FM@5B8@5KHC=B89AB=:M5B8K=H<CIHF9EI=F=B;5DF9@=A=B5FM89H9FA=B5H=CB C:H<9I@H=A5H99BH=H@9A9BHHC=B89AB=:=75H=CBD5MCFF9=A6IFG9F95GCB56@99LD9BG9G=B58J5B79C::=B5@8=GDCG=H=CBC:5 DFC7998=B;HC5BM=B8=J=8I5@K<C=G5DF9G9BHCF:CFA9F8=F97HCFCFC::=79F5B8K<C=GA589CFH<F95H9B98HC69A5895D5FHMHC CFK=HB9GG=BH<9DFC7998=B;6MF95GCBC:<=GCF<9FG9FJ=79=BH<5H75D57=HMCF5BM=B8=J=8I5@K<CK<=@958=F97HCFCFC::=79F 5B85HCIFF9EI9GHG9FJ9GCF<5GG9FJ985G58=F97HCFC::=79FD5FHB9FHFIGH99A9A69FCFA5B5;9FC:5BCH<9F7CFDCF5H=CBF95@ 9GH5H9=BJ9GHA9BHHFIGH@=A=H98@=56=@=HM7CAD5BMD5FHB9FG<=D>C=BHJ9BHIF9HFIGH9AD@CM9969B9:=HD@5BCFCH<9F9BH9FDF=G95B8 K<C=GA589CFH<F95H9B98HC69A5895D5FHMHCCFK=HB9GG=BH<9DFC7998=B;6MF95GCBC:<=GCF<9FG9FJ=79=BH<5H75D57=HM 1=H<H<95DDFCJ5@C:CIFC5F8C:=F97HCFGK9A5MDFCJ=89GI7<=B89AB=:=75H=CB5B858J5B79:CF9LD9BG9GHC5BM=B8=J=8I5@ K<CG9FJ985DF98979GGCFC:H<9CAD5BM=B5BMC:H<975D57=H=9G89G7F=69856CJ95B85BM9AD@CM99CF5;9BHC:H<9CAD5BM CF5DF98979GGCFC:H<9CAD5BM=B7@I8=B;CIF8A=B=GHF5HCF5B8=HG5::=@=5H9G

195@GC5F9D9FA=HH98HCDIF7<5G95B8K97IFF9BH@MA5=BH5=B=BGIF5B79CFDFCJ=89G=A=@5FDFCH97H=CBCB69<5@:C:5BM 8=F97HCFGC::=79FG9AD@CM99G5B85;9BHG=B7@I8=B;CIF8A=B=GHF5HCF5B8=HG5::=@=5H9G5;5=BGH5BM@=56=@=HM5GG9FH98K<=7<K5G =B7IFF98=B5BMGI7<75D57=HMK=H<IGCF5F=G=B;CIHC:GI7<GH5HIG
.<=GA5MF9GI@H=BIG<5J=B;HC9LD9B8G=;B=:=75BH:IB8G K<=7<7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHC G5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

The liability of the Administrator and the Operator to us under the Master Services Agreement and the Investment Management Agreement, respectively, is limited and we agreed to indemnify the Administrator and the Operator, respectively, against certain liabilities. As a result, we could experience or losses for which neither the Administrator nor the Operator would be liable.

Pursuant to the Master Services Agreement, the Administrator has no responsibility other than to provide its services in good faith and will not be responsible for any action of our Board of Directors that follows or declines to follow the Administrator's advice or recommendations. Under the terms of the Master Services Agreement, none of the Administrator or any of its affiliates providing services under the Master Services Agreement will be liable to us, any subsidiary of ours party to the Master Services Agreement, any governing body (including any director or officer), stockholder or partner of any such entity for acts or omissions made pursuant to or in accordance with the Master Services Agreement, other than acts or omissions constituting fraud, willful misconduct, gross negligence or violation of certain laws or any other intentional or criminal wrongdoing or breach of the Master Services Agreement. Moreover, the aggregate liability of any such entities and persons pursuant to the Master Services Agreement is capped at the aggregate amount of the Base Service Fee and any transaction fees previously paid to the Administrator in the two most recent calendar years. In addition, we have agreed to indemnify the Administrator and any of its affiliates providing services Agreement, any affiliates of the Administrator and any directors, officers, stockholders, agents, subcontractors, delegates, partners, shareholders, employees and other representatives of each of them from and against all actions, lawsuits, investigations, proceedings or claims except to the extent resulting from such person's fraud, willful misconduct, gross negligence or violation of certain laws or any other intentional or criminal wrongdoing or breach of the Master Services Agreement.

Pursuant to the Investment Management, the Operator is not liable to CIM Urban, CIM Urban GP or any manager or director of CIM Urban GP for, and CIM Urban has agreed to indemnify the Operator against any losses, claims, damages or liabilities to which it may become subject in connection with, among other things, (1) any act or omission performed or omitted by it or for any costs, damages or liabilities arising therefrom, in the absence of fraud, gross negligence, willful misconduct or a breach of the Investment Agreement or (2) any losses due to the negligence of any employees, brokers, or other agents of CIM Urban.

Risks Related to Real Estate Assets

Our operating performance is subject to risks associated with the real estate industry.

Real estate assets are subject to various risks and fluctuations and demand, many of which are beyond our control. Certain events may decrease cash available for distributions, as well as the value of our properties. These events include, but are not limited to:

• · adverse changes in economic and socioeconomic conditions (including as a result of COVID-19);
• · vacancies or our inability to rent space on favorable terms;
• · adverse changes in financial conditions of buyers, sellers and tenants of properties;
• inability to collect rent from tenants;
• · competition from real estate investors with significant capital, including but not limited to real estate operating companies, publicly-traded REITs and institutional investment funds;
• · reductions in the level of demand for office and hotel space and changes in the relative popularity of properties;
• increases in the supply of office and hotel space;
• · fluctuations in interest rates and the availability of credit, which could adversely affect our ability of buyers and tenants of properties, to obtain financing on favorable terms or at all;
• · dependence on third parties to provide leasing, brokerage, onsite property management and other services with respect to certain of our assets;
• increases in expenses, including insurance costs, utility prices, real estate assessments and other taxes and costs of compliance with laws, regulations and governmental policies, and our inability to pass on some or all of these increases to our tenants; and
• · changes in, and changes in enforcement of, laws, regulations and governmental policies, including, without limitation, health, safety, environmental, zoning, real estate tax, federal and state laws, governmental fiscal policies and the ADA.

The outbreak of COVID-19 that began in the fourth quarter of 2019 may lead to a recession and an economic slowdown in the United States. During periods of economic slowdown or recession, rising interest rates or declining demand for real estate, or the public perception that any of these events may occur, could result in rents or an

increased incidence of defaults under existing leases. If we cannot operate our properties so as to meet our financial expectations, our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock may be negatively impacted.

There can be no assurance that we will achieve our economic objectives.

A significant portion of our properties, by aggregate net operating income and square feet, are located in California. We are dependent on the California real estate market and economy, and are therefore susceptible to risks of events in the California market that could adversely affect our business, such as adverse market conditions, changes in local laws or regulations and natural disasters.

Because our properties in California represent a significant portion of our portfolio by aggregate net operating income and square feet, we are exposed to greater economic risks than if we owned a more geographically diverse portfolio. We are susceptible to adverse developments in the California economic and regulatory environments (such as business layoffs or downsizing, industry slowdowns, relocations of businesses, increases in real estate and other taxes, costs of complying with governmental regulations or increased regulation and other factors) as well as natural disasters that occur in these areas (such as earthquakes, floods, fires and other events). In addition, the State of California is regarded as more highly regulated and taxed than many states, which may reduce demand for office and hotel space in California. Any adverse developments in the economy or real estate markets in California, or any decrease in demand for office and hotel space resulting from the California regulatory or business environments, could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

Capital and credit market conditions may adversely affect demand for our properties and the overall availability and cost of credit.

In periods when the capital and credit markets experience significant volatility, demand for our properties and the overall availability and cost of credit may be adversely affected. No assurances can be given that the capital and credit market conditions will not have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock.

In addition, we could be adversely affected by significant volatility in the capital and credit markets as follows:

• · the tenants in our office properties may experience a deterioration in their sales or other revenue, or experience a constraint on the availability of credit necessary to fund operations, which in turn may adversely impact those tenants' ability to pay contractual base rents and tenant recoveries. Some tenants may terminate their occupancy due to an inability to operate profitably for an extended period of time, impacting our ability to maintain occupancy levels; and
• · constraints on the availability of credit to tenants, necessary to purchase and install improvements, fixtures and equipment and to fund business expenses, could impact our ability to procure new tenants for spaces currently vacant in existing office properties or properties under development.

Tenant concentration increases the risk that cash flow could be interrupted.

We are, and expect that we will continue to be, subject to a degree of tenant concentration at certain of our properties and or across multiple properties. Kaiser, which occupied space in one of our Oakland, California properties accounted for 30.0% of our annualized rental income for the year ended December 31, 2020. In the event that a tenant occupying a significant portion of one or more of our properties or whose represents a significant portion of the rental revenue at such property or properties were to experience financial weakness or file bankruptcy, it could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

If a major tenant declares bankruptcy, we may be under relevant leases, which could have a material adverse effect on our financial condition and ability to pay distributions to our stockholders.

The bankruptcy or insolvency of our tenants may adversely affect the income produced by our properties. Under bankruptcy law, a tenant cannot be evicted solely because of its bankruptcy and has the option to assume or reject any unexpired lease. If the tenant rejects the lease, any resulting claim we have for breach of the extent of any collateral securing the claim) will be treated as a general unsecured claim. Our claim against the bankrupt tenant for unpaid and future rent will be subject to a statutory cap that might be substantially less than the remaining rent actually owed under the lease, and it is unlikely that a bankrupt tenant that rejects its lease would pay in full amounts it owes us under the lease. Even if

a lease is assumed and brought current, we still run the risk that a tenant could condition on a restructuring of certain terms, including rent, that would have an adverse impact on us. Any shortfall resulting from the bankruptcy of one or more of our tenants could adversely affect our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

In addition, the financial failure of, or other default by, one or more of the tenants to whom we have exposure could have an adverse effect on the results of our operations. While we evaluate the creditworthiness of our tenants by reviewing available financial and other pertinent information, there can be no assurance that any tenant will be able to make timely rental payments or avoid defaulting under its lease. If any of our tenants' businesses experience significant adverse they may fail to make rental payments when due, exercise early termination rights (to the extent such rights are available to the tenant) or declare bankruptcy. A default by a significant or multiple tenants could cause a material reduction in our revenues and operating cash flows. In addition, if a tenant defaults, we may incur substantial costs in protecting our asset.

We have assumed, and in the future may assume, liabilities in connection with our property acquisitions, including unknown liabilities

In connection with the acquisition of properties, we may assume existing liabilities, some of which may have been unknown or unquantifiable at the acquisition of assets. Unknown liabilities might include liabilities for cleanup or remediation of undisclosed environmental conditions, claims of tenants or other persons dealing with the sellers prior to our acquisition of the properties, tax liabilities, and accrued but unpaid liabilities whether incurred in the ordinary course of business or otherwise. If the magnitude of such unknown liabilities is high, either singly or in the aggregate, it could adversely affect our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

We may be adversely affected by trends in the office real estate industry.

Telecommuting, flexible work schedules, open workspaces and teleconferencing are becoming more common. These practices enable businesses to reduce their space requirements. There is also an increasing trend among some businesses to utilize shared office space and co-working spaces. A continuation of the movement towards these practices could over time erode the overall demand for office space and, in turn, place downward pressure on occupancy, rental rates and property valuations.

We may be unable to renew leases or lease vacant office space.

As of December 31, 2020, 19.5% of the rentable square footage of our office portfolio was available for lease, and 8.6% of the occupied square footage of such office properties was scheduled to expire in 2021. The local economic environment may make the renewal of these leases more difficult, or renewal may occur at rental rates equal to or below existing rental rates. As a result, portions of our office properties may remain for extended periods of time. In addition, we may have to offer substantial rent abatements, concessions, early termination rights or below-market renewal options to attract new tenants or retain existing tenants. The factors described above could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

A significant portion of our net operating income is expected to come from our hotel and, as a result, our operating performance is subject to the cyclical nature of the lodging industry.

The performance of the lodging industry has historically been closely linked to the performance of the general economy and, specifically, growth in U.S. gross domestic product. Fluctuations in lodging demand and, therefore, hotel operating performance, are caused largely by general economic and local market conditions, which subsequently affect levels of business and leisure travel. For instance, increased fuel costs, natural disasters or disruptive global political events, including terrorist activity and war, are a few factors that could affect an individual's willingness to travel.

In addition to general economic conditions, lodging supply is an important factor that can affect the lodging industry's performance. Industry overbuilding and the introduction of new concepts and products such as Airbnb®, Homeaway® and VRBO® have the potential to further exacerbate the negative impact of an economic recession. Room rates and occupancy, and thus RevPAR, tend to increase when demand growth exceeds supply growth. Further, the success of our hotel property depends largely on the property operator's ability to adapt to dominant trends, competitive pressures and consolidation, as well as disruptions such as consumer spending patterns, changing demographics and the availability of labor.

B58J9FG97<5B;9=B@C8;=B;:IB85A9BH5@G7CI@8F9GI@H=BF9HIFBGH<5H5F9GI6GH5BH=5@@M69@CKCIF9LD97H5H=CBGCF F9GI@H=B@CGG9GK<=7<7CI@858J9FG9@M5::97HCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHC G5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

*'176\$4'#-1(#*+)*.;+0('%6+175%106#)+175149+&'524'#&&+5'#5'57%*#5! ?%17.&4'&7%'64#8'.#0&#&8'45'.; #(('%6&'/#0&(14174*16'.

)IF<CH9@CD9F5H=CBG5F9G9BG=H=J9HCH<9K=@@=B;B9GG5B856=@=HMC:CIF;I9GHGHCHF5J9@
.<9CIH6F95?C:<=;<@M =B:97H=CIG7CBH5;=CIGCFK=89GDF9588=G95G9GCF;@C65@<95@H<9A9F;9B7=9GK=@@@=?9@M75IG9897F95G9G=B6CH<8=G7F9H=CB5FM5B8 6IG=B9GGHF5J9@5B8F98I79H<9BIA69FC:;I9GHGH<5HJ=G=HCIF<CH9@
.<989;F99C:GI7<5897F95G9K=@@@=?9@M69KCFG9B98=BH<9 9J9BHGI7<58=G95G975IG9G58=GFIDH=CB=B5=FCFCH<9F:CFAGC:HF5J9@IG986M;I9GHGC:CIF<CH9@

BH<99J9BH5D9FGCB<5J=B; GI7<58=G95G9J=G=HGCFKCF?G5HCIF<CH9@H<9CD9F5H=CBG5HCIF<CH9@K=@@@=?9@M698=GFIDH98

1=H<)0#?DF9J5@9BH=BH<9 /B=H98-H5H9G5B8H<9F9GI@H=B;HF5J9@F9GHF=7H=CBG5B8897@=B9=BHF5J9@JC@IA97CBH=BI=B;H<9CD9F5H=CBGC:CIF<CH9@=B -57F5A9BHC5@=:CFB=5<5J9699B5B8K=@@7CBH=BI9HC6958J9FG9@M=AD57H98
"CK9J9FH<9CAD5BM75BBCHDF98=7HH<9 A5;B=HI89C:H<958J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG5B875G<:@CKG

*'5'#510#.+6;1(6*'.1&)+0)+0&7564;/#;%#75'37#46'4.;(.7%67#6+105+01744'8'07'5

.<9@C8;=B;=B8IGHFM=GG95GCB5@=BB5HIF9K<=7<A5M75IG9EI5FH9F@M:@I7HI5H=CBG=BCIFF9J9BI9GC77ID5B7M@9J9@G FCCAF5H9GCD9F5H=B;9LD9BG9G5B875G<:@CKG
)IFEI5FH9F@M95FB=B;GA5M6958J9FG9@M5::97H986M:57HCFGCIHG=89CIF7CBHFC@ =B7@I8=B;H=A=B;C:<C@=85MGK95H<9F7CB8=H=CBGDCCF97CBCA=7:57HCFG5B87CAD9H=H=CB=BH<95F95C:CIF<CH9@
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

74*16'.*#5#010)1+0)0''&(144'018#6+105#0&216'06+#..;5+)0+(+%#06%#2+6#.':2'0&+674'5#0&6*'%15651(57%* #%6+8+6+'5/#;':%''&174':2'%6#6+105

FCAH=A9HCH=A9K9K=@@B998HCA5?975D=H5@9LD9B8=HIF9GHC7CAD@MK=H<5DD@=756@9@5KG5B8F9;I@5H=CBGHC F9A5=B7CAD9H=H=J9K=H<CH<9F<CH9@G5B8HCA5=BH5=BH<997CBCA=7J5@I9C:CIF<CH9@
)77ID5B7M5B8,5F9C:H9B5::97H98 6MH<9A5=BH9B5B795B875D=H5@=ADFCJ9A9BHG5H5<CH9@9GD97=5@@M=BH<99J9BHH<5HH<9A5=BH9B5B79CF=ADFCJ9A9BHG5F9BCH 7CAD@9H98CBG7<98I@9CF=:H<9=ADFCJ9A9BHGF9EI=F9G=;B=:=75BH7@CGIF9G5HH<9<CH9@
.<97CGHGC:75D=H5@=ADFCJ9A9BHGK9 B998CF7<CCG9HCA5?97CI@8<5FACIF:=B5B7=5@7CB8=H=CB5B8F98I795ACIBHG5J5=@56@9:CF8=GHF=6IH=CBHCCIFGHC7?<C@89FG .<9G975D=H5@=ADFCJ9A9BHGA5M;=J9F=G9HCH<9:C@@CK=B;588=H=CB5@F=G?G5ACB;CH<9FG

• P 7CBGHFI7H=CB7CGHCJ9FFIBG5B889@5MG
• P 5DCGG=6@9G<CFH5;9C:5J5=@56@975G<HC:IB875D=H5@=ADFCJ9A9BHG5B8H<9F9@5H98DCGG=6=@=HMH<5H:=B5B7=B;:CF H<9G975D=H5@=ADFCJ9A9BHGA5MBCH695J5=@56@9HCIGCB5::CF856@9H9FAG
• P IB79FH5=BH=9G5GHCA5F?9H89A5B8CF5@CGGC:A5F?9H89A5B85:H9F75D=H5@=ADFCJ9A9BHG<5J969;IB
• P 8=GFIDH=CB=BG9FJ=795B8FCCA5J5=@56=@=HM75IG=B;F98I79889A5B8C77ID5B7M5B8F5H9G
• P DCGG=6@99BJ=FCBA9BH5@DFC6@9AG5B8
• P 8=GDIH9GK=H<CIFA5B5;9F:F5B7<=G9CKB9FF9;5F8=B;CIF7CAD@=5B79K=H<H<9F9EI=F9A9BHGIB89FCIF A5B5;9A9BHCF:F5B7<=G95;F99A9BHG

*'+0%4'#5+0)75'1(10.+0'64#8'.+06'4/'&+#4+'5\$;%1057/'45/#;#&8'45'.;#(('%6174241(+6#\$+.+6;

-CA9C:CIF<CH9@FCCAG5F96CC?98H<FCI;<CB@=B9HF5J9@=BH9FA98=5F=9G=B7@I8=B;6IHBCH@=A=H98HC .F5J9@C7=HM
7CALD98=5
7CA5B8*F=79@=B9
7CA
GCB@=B96CC?=B;G=B7F95G9H<9G9=BH9FA98=5F=9GA5M89A5B8<=;<9F 7CAA=GG=CBGF98I798FCCAF5H9GCFCH<9FG=;B=:=75BH7CBHF57H7CB79GG=CBG
'CF9CJ9FGCA9C:H<9G9CB@=B9HF5J9@ =BH9FA98=5F=9G5F95HH9ADH=B;HCC::9F<CH9@FCCAG5G57CAAC8=HM6M=B7F95G=B;H<9=ADCFH5B79C:DF=795B8;9B9F5@=B8=75HCFG C:EI5@=HMGI7<5GTH<F99?GH5F8CKBHCKB<CH9@U5HH<99LD9BG9C:6F5B8=89BH=:=75H=CB
.<9G9=BH9FA98=5F=9G<CD9H<5H 7CBGIA9FGK=@@89J9@CD6F5B8@CM5@H=9GHCH<9=FF9G9FJ5H=CBGGMGH9AGF5H<9FH<5BHCD5FH=7I@5F<CH9@G
@H<CI;<ACGHC:H<9 6IG=B9GG:CFCIF<CH9@=G9LD97H98HC6989F=J98:FCA7CBGIA9F8=F97H5B8HF58=H=CB5@<CH9@7<5BB9@GGI7<5GHF5J9@5;9B7=9G 7CFDCF5H9577CIBHGA99H=B;D@5BB9FG5B8F97C;B=N98K<C@9G5@9CD9F5HCFG=:H<95ACIBHC:G5@9GA589H<FCI;<CB@=B9 =BH9FA98=5F=9G=B7F95G9GG=;B=:=75BH@MFCCAF9J9BI9GA5M69@CK9FH<5B9LD97H98K<=7<7CI@858J9FG9@M5::97HCIF6IG=B9GG :=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@ C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

0%4'#5'&75'1(6'%*01.1);/#;4'&7%'6*'0''&(14\$75+0'554'.#6'&64#8'.

.<9=B7F95G98IG9C:H9@97CB:9F9B795B8J=89C?7CB:9F9B79H97<BC@C;M6M6IG=B9GG9G7CI@8F9GI@H=B897F95G986IG=B9GG HF5J9@5G7CAD5B=9G=B7F95G9H<9IG9C:H97<BC@C;=9GH<5H5@@CKAI@H=D@9D5FH=9G:FCA8=::9F9BH@C75H=CBGHCD5FH=7=D5H95H A99H=B;GK=H<CIHHF5J9@=B;HC579BHF5@=N98A99H=B;@C75H=CB
.CH<99LH9BHH<5HGI7<H97<BC@C;=9GD@5M5B=B7F95G98FC@9=B85M? HC?85M6IG=B9GG5B8H<9B979GG=HM:CF6IG=B9GG?F9@5H98HF5J9@897F95G9G<CH9@FCCA89A5B8A5M897F95G9K<=7<7CI@8 58J9FG9@M5::97HCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79 C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

"'#4'57\$,'%6614+5-5#551%+#6'&9+6*6*''/2.1;/'061(*16'.2'45100'.2#46+%7.#4.;9+6*4'52'%66170+10+<'&.#\$14

)IFH<=F8?D5FHMA5B5;9F=GF9GDCBG=6@9:CF<=F=B;5B8A5=BH5=B=B;H<9@56CF:CF795HCIF<CH9@
GCKB9FC:CIF<CH9@ K95F9F9GDCBG=6@9:CF5B8GI6>97HHCA5BMC:H<97CGHG5B8F=G?G;9B9F5@@M5GGC7=5H98K=H<H<9<CH9@@56CF:CF79D5FH=7I@5F@M K=H<F9GD97HHCIB=CB=N98@56CF
FCAH=A9HCH=A9<CH9@CD9F5H=CBGA5M698=GFIDH985G5F9GI@HC:GHF=?9G@C7?CIHGDI6@=7 89ACBGHF5H=CBGCFCH<9FB9;5H=J957H=CBG5B8DI6@=7=HM
195@GCA5M=B7IF=B7F95G98@9;5@7CGHG5B8=B8=F97H@56CF7CGHG5G5 F9GI@HC:7CBHF57H8=GDIH9GCFCH<9F9J9BHG
.<9F9GC@IH=CBC:@56CF8=GDIH9GCFF9?B9;CH=5H98@56CF7CBHF57HG7CI@8@958HC =B7F95G98@56CF7CGHG9=H<9F6M=B7F95G9G=BK5;9GCF69B9:=HGCF6M7<5B;9G=BKCF?FI@9GH<5HF5=G9<CH9@CD9F5H=B;7CGHG
19 8CBCH<5J9H<956=@=HMHC5::97HH<9CIH7CA9C:H<9G9B9;CH=5H=CBG

"'/#;\$'70#\$.'61&'2.1;%#2+6#.+0#9#;6*#6)4195174\$75+0'55#0&'8'0+(%1057//#6'&9'/#;(#+.6157%%'55(7..; +06')4#6'#0&12'4#6'#%37+4'&2412'46+'5

19D@5BHC89D@CM75D=H5@=B588=H=CB5@F95@9GH5H95GG9HG5GCDDCFHIB=H=9G5F=G9
)IF56=@=HMHC8CGCCB:5JCF56@9H9FAG 5B8CFGI779GG:I@@M=BH9;F5H95B8CD9F5H9H<9A=GGI6>97HHCH<9:C@@CK=B;G=;B=:=75BHF=G?G

• P K9A5M69IB56@9HC89D@CM75D=H5@=B588=H=CB5@F95@9GH5H95GG9HG6975IG9C:7CAD9H=H=CB:FCAF95@9GH5H9 =BJ9GHCFGK=H<69HH9F5779GGHC@9GG9LD9BG=J975D=H5@=B7@I8=B;F95@9GH5H9CD9F5H=B;7CAD5B=9GDI6@=7@M?HF5898 ,#.G5B8=BJ9GHA9BH:IB8G
• P K9A5M57EI=F9DFCD9FH=9GH<5H5F9BCH577F9H=J9HCCIFF9GI@HGIDCB57EI=G=H=CB5B8K9A5MBCHGI779GG:I@@M A5B5;95B8@95G9H<CG9DFCD9FH=9GHCA99HCIF9LD97H5H=CBG
• P 7CAD9H=H=CB:FCACH<9FDCH9BH=5@57EI=F9FGA5MG=;B=:=75BH@M=B7F95G9DIF7<5G9DF=79G
• P 57EI=F98DFCD9FH=9GA5M69@C75H98=BB9KA5F?9HGK<9F9K9A5M:579F=G?G5GGC7=5H98K=H<5@57?C:A5F?9H ?BCK@98;9CFIB89FGH5B8=B;C:H<9@C75@97CBCAM@57?C:6IG=B9GGF9@5H=CBG<=DG=BH<95F955B8IB:5A=@=5F=HMK=H< @C75@;CJ9FBA9BH5@5B8D9FA=HH=B;DFC798IF9G
• P K9A5M69IB56@9HC;9B9F5H9GI::=7=9BH75G<:FCACD9F5H=CBGCFC6H5=BH<9B979GG5FM896HCF9EI=HM:=B5B7=B;HC 7CBGIAA5H95HF5BG57H=CBCB:5JCF56@9H9FAGCF5H5@@
• P K9A5MB998HCGD9B8ACF9ACB9MH<5B5BH=7=D5H98HCA5?9B979GG5FM=ADFCJ9A9BHGCFF9BCJ5H=CBGHC57EI=F98 DFCD9FH=9G
• P K9A5MGD9B8G=;B=:=75BHH=A95B8ACB9MCBDCH9BH=5@HF5BG57H=CBGH<5HK98CBCH7CBGIAA5H9
• P K9A5M69IB56@9HCEI=7?@M5B89::=7=9BH@M=BH9;F5H9B9K57EI=G=H=CBG=BHCCIF9L=GH=B;CD9F5H=CBG
• P K9A5MGI::9F<=;<9FH<5B9LD97H98J575B7MF5H9G5B8CF@CK9FH<5B9LD97H98F9BH5@F5H9G5B8
• P K9A5M57EI=F9DFCD9FH=9GK=H<CIH5BMF97CIFG9CFK=H<CB@M@=A=H98F97CIFG9:CF@=56=@=H=9G5;5=BGHH<9:CFA9F CKB9FGC:H<9DFCD9FH=9G

:K975BBCH7CAD@9H9F95@9GH5H9HF5BG57H=CBGCB:5JCF56@9H9FAGCFCD9F5H957EI=F985GG9HGHCA99HCIF;C5@GCF 9LD97H5H=CBGCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79 C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?7CI@869A5H9F=5@@M58J9FG9@M 5::97H98

"'/#;\$'70#\$.'6157%%'55(7..;':2#0&17412'4#6+105+0610'9/#4-'65

.<9F=G?G89G7F=698=BH<9=AA98=5H9@MDF9798=B;F=G?:57HCFH<5H5F95DD@=756@9HCCIF56=@=HMHC57EI=F95B8 GI779GG:I@@M=BH9;F5H95B8CD9F5H9DFCD9FH=9G=BH<9A5F?9HG=BK<=7<CIFDFCD9FH=9G5F9@C75H985F95@GC5DD@=756@9HCCIF56=@=HM HC57EI=F95B8GI779GG:I@@M=BH9;F5H95B8CD9F5H9DFCD9FH=9G=BB9KA5F?9HG

B588=H=CBHCH<9G9F=G?GK9A5MBCHDCGG9GGH<9 G5A9@9J9@C::5A=@=5F=HMK=H<H<98MB5A=7G5B8A5F?9H7CB8=H=CBGC:79FH5=BB9KA5F?9HGH<5HK9A5M9BH9FK<=7<7CI@8 58J9FG9@M5::97HCIF56=@=HMHC9LD5B8=BHCH<CG9A5F?9HG

19A5M69IB56@9HC6I=@85G=;B=:=75BHA5F?9HG<5F9CF57<=9J95 89G=F98F9HIFBCBCIF5GG9HG=BB9KA5F?9HG

:K95F9IBGI779GG:I@=B9LD5B8=B;=BHCB9KA5F?9HG=H7CI@8<5J95A5H9F=5@ 58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79 C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

'46#+01(1742412'46+'59'4'57\$,'%661+/2#+4/'06%*#4)'524+14616*'+45#.'5#0�1(1742412'46+'5/#;\$'57\$,'%661 +/2#+4/'06%*#4)'5+06*'(7674'

19FCIH=B9@M9J5@I5H9CIF5GG9HG:CF=AD5=FA9BH=B8=75HCFG5B85GGI7<K9<5J9F97CF898
A=@@=CB5B8C: =AD5=FA9BHC:@CB;?@=J985GG9HG:CFH<9M95FG9B898979A69F5B8F9GD97H=J9@M
.<9>I8;A9BHF9;5F8=B; H<99L=GH9B795B8A5;B=HI89C:=AD5=FA9BH=B8=75HCFG=G65G98CB:57HCFGGI7<5GA5F?9H7CB8=H=CBGH9B5BHD9F:CFA5B795B8 @95G9GHFI7HIF9
CF9L5AD@9H<995F@MH9FA=B5H=CBC:CF89:5I@HIB89F5@95G96M5H9B5BHA5M@958HC5B=AD5=FA9BH7<5F;9

: K989H9FA=B9H<5H5B=AD5=FA9BH5GC77IFF98K9K=@@69F9EI=F98HCA5?958CKBK5F858IGHA9BHHCH<9B9H75FFM=B;J5@I9C: H<9DFCD9FHMK<=7<7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIFF9GI@HGC:CD9F5H=CBG=BH<9D9F=C8=BK<=7<H<9=AD5=FA9BH 7<5F;9=GF97CF898

(9;5H=J989J9@CDA9BHG=BH<9F95@9GH5H9A5F?9HA5M75IG9A5B5;9A9BHHCF99J5@I5H9H<96IG=B9GG5B8 A57FC?97CBCA=75GGIADH=CBGIG98=B=HG=AD5=FA9BH5B5@MG=G
<5B;9G=BA5B5;9A9BHVG5GGIADH=CBG65G98CB57HI5@F9GI@HG A5M<5J95A5H9F=5@=AD57HCBH<9CAD5BMVG:=B5B7=5@GH5H9A9BHG

"'/#;1\$6#+010.;.+/+6'&9#44#06+'59*'09'274%*#5'#2412'46;#0&6;2+%#..;*#8'10.;.+/+6'&4'%1745'+06*''8'06 174&7'&+.+)'0%'&+&016+&'06+(;#0;+557'56*#6.19'46*'8#.7'1(1742412'46;

.<9G9@@9FC:5DFCD9FHMC:H9BG9@@GGI7<DFCD9FHM=BT5G=GU7CB8=H=CBCB5TK<9F9=GU65G=G5B8TK=H<5@@:5I@HGU K=H<CIH5BMK5FF5BH=9GC:A9F7<5BH56=@=HMCF:=HB9GG:CF5D5FH=7I@5FIG9CFDIFDCG9

B588=H=CBDIF7<5G95;F99A9BHGA5M 7CBH5=BCB@M@=A=H98K5FF5BH=9GF9DF9G9BH5H=CBG5B8=B89AB=:=75H=CBGH<5HGIFJ=J9:CFCB@M5@=A=H98D9F=C85:H9FH<97@CG=B;5B8 K=H<575DCBF97CJ9F56@985A5;9G

BH<99J9BHK9DIF7<5G95DFCD9FHMK=H<5@=A=H98K5FF5BHMH<9F9K=@@695B=B7F95G98F=G? H<5HK9K=@@@CG9GCA9CF5@@C:CIF75D=H5@=BH<9DFCD9FHM

"'/#;\$'70#\$.'615'..#2412'46;+(149*'09'&'%+&'61&151+0%.7&+0)#5#4'57.61(70%'46#+0/#4-'6%10&+6+105

,95@9GH5H95GG9HG5F9=B;9B9F5@F9@5H=J9@M=@@=EI=85B8A5M697CA99J9BACF9=@@=EI=88IF=B;D9F=C8GC:97CBCA=7 8CKBHIFB
G5F9GI@HK9A5MBCH6956@9HCG9@@CIFDFCD9FH=9GEI=7?@MCFCB:5JCF56@9H9FAG=BF9GDCBG9HC7<5B;9G=BH<9 97CBCAMCFCH<9F7CB8=H=CBGK<9B=HCH<9FK=G9A5M69DFI89BHHC8CGC

B588=H=CB79FH5=BG=;B=:=75BH9LD9B8=HIF9G;9B9F5@@M 8CBCH7<5B;9=BF9GDCBG9HC97CBCA=7CFCH<9F7CB8=H=CBG=B7@I8=B;896HG9FJ=79C6@=;5H=CBGF95@9GH5H9H5L9G5B8CD9F5H=B; 5B8A5=BH9B5B797CGHG

.<=G7CA6=B5H=CBC:J5F=56@9F9J9BI95B8F9@5H=J9@M:=L989LD9B8=HIF9GA5MF9GI@HIB89F79FH5=BA5F?9H 7CB8=H=CBG=BF98I79895FB=B;G
.9F9:CF9K9A5M69IB56@9HC58IGHCIFDCFH:C@=CDFCADH@M=BF9GDCBG9HC97CBCA=7A5F?9H CFCH<9F7CB8=H=CBGK<=7<7CI@858J9FG9@M5::97HCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HM HCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

-CA9C:CIF@95G9GA5MBCH=B7@I89D9F=C8=7F9BH5@=B7F95G9GCFH<9F9BH5@=B7F95G9GA5M69@9GGH<5BH<9:5=FA5F?9H F5H95H5:IHIF9DC=BH=BH=A9

B9=H<9F75G9H<9J5@I9C:H<9@95G98DFCD9FHMHC5DCH9BH=5@DIF7<5G9FA5MBCH=B7F95G9CJ9FH=A9 K<=7<A5MF9GHF=7HCIF56=@=HMHCG9@@H<5HDFCD9FHMCF=:K95F956@9HCG9@@H<5HDFCD9FHMA5MF9GI@H=B5G5@9DF=79@9GGH<5BH<9 DF=79H<5HK9D5=8HCDIF7<5G9H<9DFCD9FHMCFH<9DF=79H<5H7CI@869C6H5=B98=:H<9F9BH5@=B7CA9K5G5HH<9H<9B?7IFF9BH A5F?9HF5H9

199LD97HHC<C@8CIFJ5F=CIGF95@DFCD9FH=9GIBH=@GI7<H=A95GK9897=89H<5H5G5@9CFCH<9F8=GDCG=H=CB=G5DDFCDF=5H9 ;=J9BCIF6IG=B9GGC6>97H=J9G
)IF56=@=HMHC8=GDCG9C:DFCD9FH=9GCB58J5BH5;9CIGH9FAGCF5H5@@89D9B8GCB79FH5=B:57HCFG 69MCB8CIF7CBHFC@=B7@I8=B;7CAD9H=H=CB:FCACH<9FG9@@9FG5B8H<95J5=@56=@=HMC:5HHF57H=J9:=B5B7=B;:CFDCH9BH=5@6IM9FGC: CIFDFCD9FH=9G
1975BBCHDF98=7HH<9J5F=CIGA5F?9H7CB8=H=CBG5::97H=B;F95@9GH5H95GG9HGK<=7<K=@@9L=GH5H5BMD5FH=7I@5F H=A9=BH<9:IHIF9
I9HCH<9IB79FH5=BHMC:A5F?9H7CB8=H=CBGK<=7<A5M5::97HH<98=GDCG=H=CBC:CIFDFCD9FH=9GK975BBCH 5GGIF9CIFGHC7?<C@89FGH<5HK9K=@@6956@9HCG9@@GI7<DFCD9FH=9G5H5DFC:=HCF5H5@@=BH<9:IHIF9
77CF8=B;@MH<99LH9BHHC K<=7<CIFGHC7?<C@89FGK=@@F979=J975G<8=GHF=6IH=CBG5B8F95@=N9DCH9BH=5@5DDF97=5H=CBCBCIFF95@9GH5H95GG9HGK=@@89D9B8 IDCB:@I7HI5H=B;A5F?9H7CB8=H=CBG
IFH<9FACF9K9A5M69F9EI=F98HC9LD9B8:IB8GHC7CFF97H89:97HGCFHCA5?9 =ADFCJ9A9BHG69:CF95DFCD9FHM75B69GC@8
1975BBCH5GGIF9CIFGHC7?<C@89FGH<5HK9K=@@<5J9:IB8G5J5=@56@9HC7CFF97H GI7<89:97HGCFHCA5?9GI7<=ADFCJ9A9BHG

"'/#;\$'70#\$.'615'%74'(70&5(14174(7674'.10)6'4/.+37+&+6;0''&5

)IF@CB;?H9FA@=EI=8=HMB998GK=@@7CBG=GHDF=A5F=@MC::IB8GB979GG5FM:CF57EI=G=H=CBGC:5GG9HG89J9@CDA9BHCF F9DCG=H=CB=B;C:DFCD9FH=9G75D=H5@9LD9B8=HIF9GF9:=B5B7=B;C:=B896H98B9GG-5@C5BCF=;=B5H=CBGD5M=B;8=GHF=6IH=CBG CBCIF*F9:9FF98-HC7?CF5BMCH<9FDF9:9FF98GHC7?K9A5M=GGI95BM:IHIF9F9DIF7<5G95B8CFF989ADH=CBC:CIF*F9:9FF98 -HC7?=:K97<CCG9CF5F9F9EI=F98HCD5MH<9F989ADH=CBDF=79=B75G<=BGH958C:=BG<5F9GC:CIFCAACB-HC7?5B8 8=GHF=6IH=CBGCBCIFCAACB-HC7?
19A5MBCH<5J9GI::=7=9BH:IB8GCB<5B8CFA5MBCH6956@9HCC6H5=B588=H=CB5@ :=B5B7=B;HC7CJ9F5@@C:H<9G9@CB;?H9FA75G<F9EI=F9A9BHG
.<9B5HIF9C:CIF6IG=B9GG5B8H<9F9EI=F9A9BHG=ADCG986M,#. FI@9GH5HK98=GHF=6IH95GI6GH5BH=5@A5CF=HMC:CIF,#.H5L56@9=B7CA9CB5B5BBI5@65G=G=BH<9:CFAC:8=J=89B8GA5M 75IG9IGHC<5J9GI6GH5BH=5@@=EI=8=HMB998GCJ9FH<9@CB;?H9FA
19K=@@G99?HCG5H=G:MCIF@CB;?H9FA@=EI=8=HMB998GH<FCI;< CB9CFACF9C:H<9:C@@CK=B;A9H<C8G=C::9F=B;GC:G<5F9GC:CAACB-HC7?*F9:9FF98-HC7?CFCH<9F9EI=HM5B8CF896H

.56@9C:CBH9BHG

G97IF=H=9GC:H<9CAD5BM==7F98=H:57=@=H=9G5B8H9FA@C5BG===H<9588=H=CBC:G9B=CFF97CIFG9CFBCB?F97CIFG9896HIG=B; H5F;9H57EI=G=H=CBG5GK9@@5G9L=GH=B;5GG9HG5G7C@@5H9F5@=JH<9G5@9C:9L=GH=B;5GG9HG5B8CFJ75G<:@CKG:FCACD9F5H=CBG .<9G9GCIF79GC::IB8=B;A5MBCH695J5=@56@9CB5HHF57H=J9H9FAGCF5H5@@

:K975BBCHC6H5=B588=H=CB5@:IB8=B;:CFCIF@CB;? H9FA@=EI=8=HMB998GCIF5GG9HGA5M;9B9F5H9@CK9F75G<:@CKCF897@=B9=BJ5@I9CF6CH<K<=7<A5M75IG9IGHCG9@@5GG9HG5H5 H=A9K<9BK9KCI@8BCHCH<9FK=G98CGC5B87CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HG C:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIF CAACB-HC7?CF*F9:9FF98-HC7?

0%1/'(41/174.10)6'4/.'#5'5+5#0+/2146#065174%'1(174%#5*(.19(41/12'4#6+105#0&+557\$,'%6614+5-54'.#6'&61 +0%4'#5'5+0':2'05'5#0&+0(.#6+10

195F99LDCG98HCF=G?GF9@5H98HC=B7F95G9G=BA5F?9H@95G9F5H9G5B8=B:@5H=CB5G=B7CA9:FCA@CB;?H9FA@95G9G=G5B =ADCFH5BHGCIF79C:CIF75G<:@CK:FCACD9F5H=CBG
&95G9GC:@CB;?H9FA8IF5H=CBCFK<=7<=B7@I89F9B9K5@CDH=CBGH<5HGD97=:M 5A5L=AIAF5H9=B7F95G9A5MF9GI@H=B69@CK?A5F?9H@95G9F5H9GCJ9FH=A9=:K98CBCH577IF5H9@M9GH=A5H9=B:@5H=CBCFA5F?9H @95G9F5H9G
*FCJ=G=CBGC:CIF@95G9G89G=;B98HCA=H=;5H9H<9F=G?C:=B:@5H=CB5B8IB9LD97H98=B7F95G9G=BA5F?9H@95G9F5H9G GI7<5GD9F=C8=7F9BH5@=B7F95G9GA5MBCH589EI5H9@MDFCH97HIG:FCAH<9=AD57HC:=B:@5H=CBCFIB9LD97H98=B7F95G9G=BA5F?9H @95G9F5H9G

:K95F9GI6>97HHC69@CK?A5F?9H@95G9F5H9GCB5G=;B=:=75BHBIA69FC:CIFDFCD9FH=9GDIFGI5BHHC@CB;?H9FA@95G9G 5B8CIFCD9F5H=B;5B8CH<9F9LD9BG9G5F9=B7F95G=B;:5GH9FH<5B5BH=7=D5H98CIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC: CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIF CAACB-HC7?CF*F9:9FF98-HC7?7CI@869A5H9F=5@@M58J9FG9@M5::97H98

"'/#;(+0#0%'2412'46+'59+6*.1%-1762418+5+1059*+%*/#;241*+\$+675(41/5'..+0)#2412'46;14/#;4'37+4'7561 /#+06#+052'%+(+'&&'\$6.'8'.5(14#2'4+1&1(;'#451051/'2412'46+'5

@C7??CIHDFCJ=G=CB=G5DFCJ=G=CBH<5HDFC<=6=HGH<9DF9D5MA9BHC:5@C5B8IF=B;5GD97=:=98D9F=C8C:H=A9
&C7??CIH DFCJ=G=CBGA5M=B7@I89H9FAGH<5HDFCJ=89GHFCB;:=B5B7=5@8=G=B79BH=J9G:CF6CFFCK9FGHCDF9D5MH<9=FCIHGH5B8=B;@C5B65@5B79 #:5DFCD9FHM=GGI6>97HHC5@C7??CIHDFCJ=G=CBK9A5M69A5H9F=5@@MF9GHF=7H98:FCACF89@5M98=BG9@@=B;CFCH<9FK=G98=GDCG=B; C:CFF9:=B5B7=B;GI7<DFCD9FHM
&C7??CIHDFCJ=G=CBGA5MDFC<=6=HIG:FCAF98I7=B;H<9CIHGH5B8=B;=B896H98B9GGK=H<F9GD97H HC5BMDFCD9FH=9GF9:=B5B7=B;GI7<=B896H98B9GG5HA5HIF=HMCF=B7F95G=B;H<95ACIBHC:=B896H98B9GGK=H<F9GD97HHCGI7< DFCD9FH=9G
&C7??CIHDFCJ=G=CBG7CI@8=AD5=FCIF56=@=HMHCH5?9CH<9F57H=CBG8IF=B;H<9@C7??CIHD9F=C8H<5H7CI@869=BH<969GH =BH9F9GHGC:CIFGHC7?<C@89FG5B8H<9F9:CF9A5M<5J95B58J9FG9=AD57HCBH<9J5@I9C:CIFG97IF=H=9GF9@5H=J9HCH<9J5@I9H<5H KCI@8F9GI@H=:H<9@C7??CIHDFCJ=G=CBG8=8BCH9L=GH

BD5FH=7I@5F@C7??CIHDFCJ=G=CBG7CI@8DF97@I89IG:FCAD5FH=7=D5H=B;=B A5>CFHF5BG57H=CBGH<5H7CI@8F9GI@H=B58=GDCG=H=CBC:CIF5GG9HGCF57<5B;9C:7CBHFC@9J9BH<CI;<H<5H8=GDCG=H=CBCF7<5B;9 C:7CBHFC@A=;<H69=BH<969GH=BH9F9GHGC:CIFGHC7?<C@89FG

0%4'#5'&12'4#6+0)':2'05'5%17.&4'&7%'%#5*(.19(41/12'4#6+105#0&(70&5#8#+.#\$.'61&'2.1;%#2+6#.14/#-' &+564+\$76+105

)IFDFCD9FH=9G5F9GI6>97HHCCD9F5H=B;F=G?G7CAACBHCF95@9GH5H9=B;9B9F5@5BMCF5@@C:K<=7<A5MB9;5H=J9@M 5::97HIG

:5BMDFCD9FHM=GBCH:I@@MC77ID=98CF=:F9BHG5F9D5M56@9CF5F969=B;D5=8=B5B5ACIBHH<5H=G=BGI::=7=9BHHC 7CJ9FCD9F5H=B;9LD9BG9GH<5H5F9CIFF9GDCBG=6=@=HMIB89FH<9@95G9K97CI@869F9EI=F98HC9LD9B8:IB8G=B9L79GGC:GI7< F9BHGK=H<F9GD97HHCH<5HDFCD9FHM:CFCD9F5H=B;9LD9BG9G

)IFDFCD9FH=9G5F9GI6>97HHC=B7F95G9G=BH5LF5H9GIH=@=HM7CGHG =BGIF5B797CGHGF9D5=FG5B8A5=BH9B5B797CGHG58A=B=GHF5H=J97CGHG5B8CH<9FCD9F5H=B;5B8CKB9FG<=D9LD9BG9G
)IFDFCD9FHM @95G9GA5MBCHF9EI=F9H<9H9B5BHGHCD5M5@@CF5DCFH=CBC:H<9G99LD9BG9G=BK<=7<9J9BHK9A5M69F9GDCBG=6@9:CFH<9G9 7CGHG

:K95F9IB56@9HC@95G9DFCD9FH=9GCBH9FAGH<5HF9EI=F9H<9H9B5BHGHCD5M5@@CFGCA9C:H<9DFCD9FH=9GVCD9F5H=B; 9LD9BG9G=:CIFH9B5BHG:5=@HCD5MH<9G99LD9BG9G5GF9EI=F98CF=:9LD9BG9GK95F9F9EI=F98HCD5M9L7998CIF9LD97H5H=CBGK9 7CI@8<5J9@9GG:IB8G5J5=@56@9:CF:IHIF957EI=G=H=CBGCF75G<5J5=@56@9:CF8=GHF=6IH=CBGHCCIFGHC7?<C@89FG

*'/#4-'6'08+410/'06/#;#&8'45'.;#(('%617412'4#6+0)4'57.65(+0#0%+#.%10&+6+10#0&#\$+.+6;612#;&+564+\$76+10561 174561%-*1.&'45

BM89H9F=CF5H=CBC:8CA9GH=7CF=BH9FB5H=CB5@:=B5B7=5@A5F?9HG7CI@8=AD57HH<95J5=@56=@=HMC:7F98=HCF7CBHF=6IH9HC F=G=B;7CGHGC:C6H5=B=B;7F98=H5B8H<9F9:CF97CI@8<5J9H<9DCH9BH=5@HC58J9FG9@M5::97HH<9J5@I9C:CIF5GG9HGH<95J5=@56=@=HM CFH<9H9FAGC::=B5B7=B;CIF56=@=HMHCA5?9DF=B7=D5@5B8=BH9F9GHD5MA9BHGCBCFF9:=B5B795BM=B896H98B9GG5B8CF:CFCIF @95G98DFCD9FH=9GH<956=@=HMC:CIFH9B5BHGHC9BH9F=BHCB9K@95G=B;HF5BG57H=CBGCFG5H=G:MH<9=FC6@=;5H=CBG=B7@I8=B;H<9 D5MA9BHC:F9BHIB89F9L=GH=B;@95G9G
.<9A5F?9H9BJ=FCBA9BH5@GC7CI@85::97HCIFCD9F5H=B;F9GI@HG5B8:=B5B7=5@7CB8=H=CB 5G:C@@CKG

P ,);(92,;:S.<9896HA5F?9H=GG9BG=H=J9HCH<9A57FC9BJ=FCBA9BHGI7<5G 989F5@,9G9FJ9DC@=7MA5F?9H G9BH=A9BHCFF9;I@5HCFM:57HCFG5::97H=B;H<965B?=B;5B87CAA9F7=5@ACFH;5;9657?98G97IF=H=9G=B8IGHF=9G

-<CI@8CJ9F5@@6CFFCK=B;7CGHG=B7F95G98I9HC9=H<9F=B7F95G9G=B=B89LF5H9GCF=B7F95G9G=B@9B89FGDF958GCIF CD9F5H=CBGA5M;9B9F5H9@CK9FF9HIFBG

P ",(3:;(;,(92,;:S1<=@9=B7F9A9BH5@89A5B8;FCKH<<5G<9@D98HCF98I79J575B7MF5H9G5B8GIDDCFHAC89GH F9BH5@;FCKH<=BF979BHM95FG5B8K<=@9=ADFCJ=B;:IB85A9BH5@G<5J9F9GI@H98=B;5=BG=BDFCD9FHMJ5@I9G=B A5BMA5F?9HGDFCD9FHMJ5@I9GC77ID5B7M5B8F9BH5@F5H9G7CBH=BI9HC6969@CKH<CG9DF9J=CIG@M9LD9F=9B798 69:CF9H<9ACGHF979BH97CBCA=78CKBHIFB

:F979BH=ADFCJ9A9BHG=BH<997CBCAMF9J9FG97CIFG9H<9DFCD9FH=9G K957EI=F97CI@8GI6GH5BH=5@@M897F95G9=BJ5@I95:H9FK9DIF7<5G9H<9A

CBG9EI9BH@MK9A5MBCH6956@9HC F97CJ9FH<975FFM=B;5ACIBHC:CIFDFCD9FH=9GK<=7<A5MF9EI=F9IGHCF97C;B=N95B=AD5=FA9BH7<5F;9CFF97CF8 5@CGGCBG5@9=BCIF95FB=B;G

'#.'56#6'4'.#6'&6#:'5/#;+0%4'#5'#0&+(6*'5'+0%4'#5'5#4'0162#55'&10616'0#065174+0%1/'9+..\$'4'&7%'&

195F9F9EI=F98HCD5MDFCD9FHMH5L9G:CFCIFDFCD9FH=9GK<=7<75B=B7F95G95GDFCD9FHMH5LF5H9G=B7F95G9CF5G DFCD9FH=9G5F95GG9GG98CFF95GG9GG986MH5L=B;5IH<CF=H=9G

B5@=:CFB=5DIFGI5BHHC5B9L=GH=B;GH5H9@5K7CAACB@MF9:9FF98HC 5G*FCDCG=H=CB5@@CFDCFH=CBGC:5DFCD9FHM5F9F95GG9GG98HCA5F?9HJ5@I9CB@M5HH<9H=A9C:T7<5B;9=BCKB9FG<=DUCF 7CAD@9H=CBC:TB9K7CBGHFI7H=CBU5B8H<9F95:H9F5BBI5@DFCD9FHMH5L=B7F95G9G5F9@=A=H98HCC:DF9J=CIG@M5GG9GG98J5@I9G G5F9GI@H*FCDCG=H=CB;9B9F5@@MF9GI@HG=BG=;B=:=75BH69@CK?A5F?9H5GG9GG98J5@I9GCJ9FH=A9

FCAH=A9HCH=A9 @5KA5?9FG5B8DC@=H=75@7C5@=H=CBG<5J9=B=H=5H989::CFHGHCF9D95@CF5A9B8*FCDCG=H=CB=B7@I8=B;6M=BHFC8I7=B;*FCDCG=H=CB CBH<95@=:CFB=565@@CH=B(CJ9A69FK<=7<A95GIF9K5GBCH5DDFCJ986MJCH9FG

:GI779GG:I@=BH<9:IHIF9H<9G9 DFCDCG5@G7CI@8GI6GH5BH=5@@M=B7F95G9H<95GG9GG98J5@I9G5B8DFCD9FHMH5L9G:CFCIFDFCD9FH=9G=B5@=:CFB=5

@H<CI;<GCA9 H9B5BH@95G9GA5MD9FA=HIGHCD5GGH<FCI;<GI7<H5L=B7F95G9GHCH<9H9B5BHG:CFD5MA9BHF9B9K5@@95G9GCF:IHIF9@95G9GA5M BCH69B9;CH=5H98CBH<9G5A965G=G
.5L=B7F95G9GBCHD5GG98H<FCI;<HCH9B5BHG7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF 6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=B CIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

7412'4#6+0)4'57.65/#;\$'0')#6+8'.;#(('%6'&\$;&'8'.12/'06#0&%105647%6+10&'.#;5#0&6*'4'57.6#06+0%4'#5'&%1565 #0&4+5-5

:K99B;5;9=B89J9@CDA9BHCF7CBGHFI7H=CBDFC>97HGK9K=@@69GI6>97HHCIB79FH5=BH=9G5GGC7=5H98K=H<F9?NCB=B;:CF 89J9@CDA9BH9BJ=FCBA9BH5@5B8@5B8IG97CB79FBGC:;CJ9FBA9BH5@9BH=H=9G5B8CF7CAAIB=HM;FCIDG5B8CIF6I=@89FVG56=@=HM HC6I=@8=B7CB:CFA=HMK=H<D@5BGGD97=:=75H=CBG6I8;9H987CGHG5B8H=A9H56@9G

:56I=@89F:5=@GHCD9F:CFAK9A5MF9GCFHHC @9;5@57H=CBHCF9G7=B8H<96F957<985;F99A9BHCFHC7CAD9@D9F:CFA5B79

6I=@89FVGD9F:CFA5B79A5M5@GC695::97H98CF 89@5M986M7CB8=H=CBG69MCB8H<96I=@89FVG7CBHFC@
9@5MG=B7CAD@9H=CBC:7CBGHFI7H=CB7CI@85@GC;=J9H9B5BHGH<9F=;<HHC H9FA=B5H9DF97CBGHFI7H=CB@95G9G
19A5M=B7IF588=H=CB5@F=G?G=:K9A5?9D9F=C8=7DFC;F9GGD5MA9BHGCFCH<9F58J5B79GHC 6I=@89FG69:CF9H<9M7CAD@9H97CBGHFI7H=CB
.<9G95B8CH<9FGI7:57HCFG75BF9GI@H=B=B7F95G987CGHGC:5DFC97HCF@CGGC:CIF 5GG9H

B588=H=CBK9K=@@69GI6>97HHCBCFA5@@95G9?IDF=G?GF9@5H=B;HCB9K@M7CBGHFI7H98DFC>97HG

195@GCAIGHF9@MCBF9BH5@ =B7CA95B89LD9BG9DFC>97H=CBG5B89GH=A5H9GC:H<9:5=FA5F?9HJ5@I9C:DFCD9FHMIDCB7CAD@9H=CBC:7CBGHFI7H=CBK<9B 5;F99=B;IDCB5DF=795HH<9H=A9K957EI=F9H<9DFCD9FHM

:CIFDFC>97H=CBG5F9=B577IF5H9K9A5MD5MHCCAI7<:CF5 DFCD9FHM5B8CIFF9HIFBCBCIF5GG9HG7CI@8GI::9F

19A5M89D@CM75D=H5@=BIB=ADFCJ98F95@DFCD9FHM
,9HIFBG:FCA89J9@CDA9BHC:IB=ADFCJ98DFCD9FH=9G5F95@GC GI6>97HHCF=G?G5GGC7=5H98K=H<F9?NCB=B;H<9@5B8:CF89J9@CDA9BH5B89BJ=FCBA9BH5@5B8@5B8IG97CB79FBGC:;CJ9FBA9BH5@ 9BH=H=9G5B8CF7CAAIB=HM;FCIDG

"'(#%'5+)0+(+%#06%1/2'6+6+10

)IFC::=79DCFH:C@=C7CAD9H9GK=H<5BIA69FC:89J9@CD9FGCKB9FG5B8CD9F5HCFGC:C::=79F95@9GH5H9A5BMC:K<=7< CKBDFCD9FH=9GG=A=@5FHCCIFG=BH<9G5A9A5F?9HG=BK<=7<CIFDFCD9FH=9G5F9@C75H98

:CIF7CAD9H=HCFGC::9FGD5795HF9BH5@ F5H9G69@CK7IFF9BHA5F?9HF5H9GCF69@CKH<9F9BH5@F5H9GK97IFF9BH@M7<5F;9CIFH9B5BHGK9A5M@CG99L=GH=B;CFDCH9BH=5@ H9B5BHG5B8A5MBCH6956@9HCF9D@579H<9A5B8K9A5M69DF9GGIF98HCF98I79CIFF9BH5@F5H9G69@CKH<CG9K97IFF9BH@M 7<5F;9CFHCC::9FACF9GI6GH5BH=5@F9BH565H9A9BHGH9B5BH=ADFCJ9A9BHG95F@MH9FA=B5H=CBF=;<HGCF69@CK?A5F?9HF9B9K5@ CDH=CBG=BCF89FHCF9H5=BH9B5BHGK<9BCIFH9B5BHGV@95G9G9LD=F9

G5F9GI@HC:5BMC:H<9:CF9;C=B;:57HCFGCIF6IG=B9GG :=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@ C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?A5M69A5H9F=5@@M58J9FG9@M5::97H98

)IF<CH9@DFCD9FHM7CAD9H9G:CF;I9GHGDF=A5F=@MK=H<CH<9F<CH9@G=BH<9=AA98=5H9J=7=B=HMC:CIF<CH9@5B8 G97CB85F=@MK=H<CH<9F<CH9@G=BH<9;9C;F5D<=7A5F?9HC:CIF<CH9@
B=B7F95G9=BH<9BIA69FC:7CAD9H=H=J9<CH9@G=BH<9G9 5F95G7CI@8<5J95A5H9F=5@58J9FG99::97HCBH<9C77ID5B7M,5B8,9J*,C:CIF<CH9@

Terrorism and war could harm our operating results.

The strength and profitability of our business depends on demand for and the value of our properties. Future terrorist attacks in the United States, and other acts of terrorism or war, may have a negative impact on our operations. Terrorist attacks in the United States and elsewhere may result in declinity, which could harm the demand for and the value of our properties. In addition, the public perception that certain locations are at greater risk for attack, such as major airports, ports, and rail facilities, may decrease the demand for and the value of our properties near these sites. A decrease in demand could make it difficult for us to renew or re-lease our properties at these sites equal to or above historical rates. Such terrorist attacks could have an adverse impact on our business even if they are not directed at our properties.

Previous terrorist attacks and subsequent terrorist alerts have adversely affected the U.S. travel and hospitality industries since 2001, often disproportionately compared to the effect on the extent of the impact that actual or threatened terrorist attacks in the United States or elsewhere and international travel and our business in particular cannot be determined, but any such attacks or the threat of such attacks could have a material adverse effect on travel and hotel demand and our ability to finance our hospitality business.

In addition, the terrorist attacks of September 11, 2001 have substantially affected the availability and price of insurance coverage for certain types of damages or occurrence policies for terrorism include large deductibles and co-payments. Although we maintain terrorism insurance coverage on our portfolio, the amount of our terrorism insurance coverage may not be sufficient to cover losses inflicted by terrorism and therefore could expose us to significant losses and have a negative impact on our operations.

In connection with the ownership and operation of real estate assets, we may be liable for costs and damages related to environmental matters

Environmental laws regulate, and impose liability for, releases of hazardous or toxic substances into the environment. Under some of these laws, an owner or operator of real estate may be liable for costs related to soil or groundwater contamination on or migrating to or from its property. In addition, persons who arrange for the disposal or treatment of hazardous or toxic substances may be liable for the costs of cleaning up contamination at the disposal site.

These laws often impose liability regardless of whether the person knew of, or was responsible for, the presence of the hazardous or toxic substances that caused the contamination resulting from any of these substances, or the failure to properly remediate them, may adversely affect our ability to sell or rent our property, to borrow using the property as collateral or create lender's liability for us. In addition, third parties exposed to hazardous or toxic substances may sue for personal injury damages. For example, some laws impose lability for release of or exposure to asbestos-containing materials. As a result, in connection with our former, current or future ownership, operation, and development of real estate assets, or our role as a lender for indirectly or indirectly by real estate properties, we may be potentially liable for investigation and cleanup costs, penalties and damages under environmental laws.

Although many of our properties have been subjected to preliminary environmental assessments, known as Phase I assessments, by independent environmental consultants that identify certain liabilities, Phase I assessments are limited in soope, and may not include or identify all potential environmental liabilities or risks associated with a property. Unless required by applicable law, we may decide not to further investigate, remedy or ameliorate the liabilities disclosed in the Phase I assessments

Further, these or other environmental studies may not identify all potential environmental liabilities or accurately assess whether we will incur material liabilities in the future. If we do incur material environmental liabilities in the future, our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock could be materially adversely affected.

Ownership of real estate is subject to risks from adverse weather, natural disasters and climate events.

The physical effects of climate change could have a material adverse effect on our properties, operations, and business. To the extent climate changes in weather patterns, our markets could experience increases in storm intensity, rising sea-levels, and changes in precipitation, temperature, and air quality. Over time, these conditions could result in physical damage to, or declining demand for, our properties or our inability to operate the buildings at all. Climate change may also indirectly affect our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and increasing the risk of flood at our properties. Should the impact of climate change be severe or occur for lengthy periods of time, our financial condition or results of operations could be adversely impacted.

Compliance with the ADA and fire, safety and other regulations may require us to make unanticipated expenditures that could significantly reduce the cash available for distributions on our Common Stock or Preferred Stock.

Our properties are subject to regulation under federal laws, such as the ADA, pursuant to which all public accommodations must meet federal requirements related to access and use by disabled persons. Although we believe that our properties substantially comply with present requirements of the ADA, we have not conducted an audit or investigation of all of our properties to determine our compliance. If one or more of our properties are not in compliance with the ADA, we might be required to take remedial action, which would require us to incur additional costs to bring the property into compliance. Noncompliance with the ADA could also result in imposition of fines or an award of damages to private litigants.

Additional federal, state and local laws also may require modifications to our properties or restrict our ability to renovate our properties. We cannot predict the ultimate amount of the cost of compliance with the ADA or other legislation.

In addition, our properties are subject to various federal, state and local regulatory requirements, such as state and local earthquake, fire and life safety requirements. Local regulations, including municipal or local ordinances, zoning restrictions and restrictive covenants imposed by community developers may restrict our use of our properties and may require us to obtain approval from local officials or community standards organizations at any time with respect to our properties, including prior to acquiring a property or when undertaking renovations of any of our existing properties. If we were to fail to comply with these various requirements, we might incur governmental fines or private damage awards. If we incur substantial costs to comply with the ADA or any other regulatory requirements, our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock could be materially adversely affected.

Risks Related to Debt Financing

We have incurred significant indebtedness and may incur significant additional indebted basis.

We have incurred significant indebtedness and may incur significant additional indebtedness to fund future acquisitions, development activities and operational needs. The degree of leverage could make us more vulnerable to a downturn in business or the economy generally.

Payments of principal and interest on our borrowings may leave us with insufficient cash resources to operate our properties and or pay distributions on our Common Stock or Preferred Stock. The incurrence of substantial outstanding indebtedness, and the limitations imposed by our debt agreements, could have significant otherse consequences, including the following:

• · our cash flows may be insufficient to meet our required principal and interest payments;
• · we may be unable to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our liquidity for acquisitions or operations;
• · we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our existing indebtedness;
• · we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;
• we may violate restrictive covenants in our debt documents, which would entitle the lenders to accelerate our debt obligations;
• · we may default on our obligations and the lenders or mortgagees may foreclose on our properties and take possession of any collateral that secures their loans; and
• · our default under any of our indebtedness with cross-default provisions could result in a default on other indebtedness.

If any one of these events occurs, our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock may be materially adversely affected. In addition, any foreclosure on our properties could create taxable income without the accompanying cash proceeds, which could adversely affect our ability to meet the REIT distribution requirements imposed by the Internal Revenue Code of 1986, as amended (the "Code").

We intend to rely in part on external sources of capital to fund future capital needs and, if we encounter difficulty in obtaining such capital, we may not be able to meet maturing obligations or make additional acquisitions.

In order to qualify and maintain our qualification as a REIT under the Code, we are required, among other things, to distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated =B577CF85B79K=H<!*89H9FA=B98K=H<CIHF9;5F8HCH<9898I7H=CB:CF8=J=89B8GD5=85B89L7@I8=B;5BMB9H75D=H5@;5=B 975IG9C:H<=G8=J=89B8F9EI=F9A9BHK9A5MBCH6956@9HC:IB8:FCA75G<F9H5=B98:FCACD9F5H=CBG5@@C:CIF:IHIF975D=H5@ B998G=B7@I8=B;75D=H5@B99898HCF9:=B5B79A5HIF=B;C6@=;5H=CBGCFA5?9B9K57EI=G=H=CBG

.<975D=H5@5B87F98=HA5F?9HG<5J99LD9F=9B7989LHF9A9JC@5H=@=HM5B88=GFIDH=CB5G5F9GI@HC:H<9;@C65@CIH6F95?C: )0#
1969@=9J9H<5HGI7<JC@5H=@=HM5B88=GFIDH=CB5F9@=?9@MHC7CBH=BI9=BHCH<9:CF9G9956@9:IHIF9
'5F?9HJC@5H=@=HM 5B88=GFIDH=CB7CI@8<=B89FCIF56=@=HMHCC6H5=BB9K896H:=B5B7=B;CFF9:=B5B79CIFA5HIF=B;896HCB:5JCF56@9H9FAGCF5H5@@ CFHCF5=G9896H5B89EI=HM75D=H5@
)IF5779GGHC75D=H5@K=@@89D9B8IDCB5BIA69FC::57HCFG=B7@I8=B;

• P ;9B9F5@A5F?9H7CB8=H=CBG
• P ;CJ9FBA9BH57H=CBCFF9;I@5H=CB=B7@I8=B;7<5B;9G=BH5L@5K
• P H<9A5F?9HVGD9F79DH=CBC:CIF:IHIF9;FCKH<DCH9BH=5@
• P H<99LH9BHC:GHC7?<C@89F=BH9F9GH
• P 5B5@MGHF9DCFHG56CIHIG5B8H<9,#.=B8IGHFM
• P H<9;9B9F5@F9DIH5H=CBC:,#.G5B8H<95HHF57H=J9B9GGC:H<9=F9EI=HMG97IF=H=9G=B7CAD5F=GCBHCCH<9F9EI=HM G97IF=H=9G=B7@I8=B;G97IF=H=9G=GGI986MCH<9FF95@9GH5H9?65G987CAD5B=9G
• P CIF:=B5B7=5@D9F:CFA5B795B8H<5HC:CIFH9B5BHG
• P CIF7IFF9BH896H@9J9@G
• P CIF7IFF9BH5B89LD97H98:IHIF995FB=B;G5B8
• P CIF75G<:@CK5B875G<8=GHF=6IH=CBG=B7@I8=B;CIF56=@=HMHCG5H=G:MH<98=J=89B8F9EI=F9A9BHG5DD@=756@9HC ,#.G

:K95F9IB56@9HCC6H5=BB9989875D=H5@CBG5H=G:57HCFMH9FAGCF5H5@@K9A5MBCH6956@9HCA99HCIFC6@=;5H=CBG5B8 7CAA=HA9BHG5GH<9MA5HIF9CFA5?95BMB9K57EI=G=H=CBG

+)*+06'4'564#6'5/#;/#-'+6&+((+%7.6(147561(+0#0%'144'(+0#0%'#55'659*+%*%17.&4'&7%'6*'07/\$'41(2412'46+'5 9'%#0#%37+4'#0&6*'#/17061(%#5*&+564+\$76+1059'%#0/#-'

19FIBH<9F=G?C:69=B;IB56@9HC:=B5B79CFF9:=B5B79CIF5GG9HGCB:5JCF56@9H9FAGCF5H5@@

:=BH9F9GHF5H9G5F9<=;< K<9BK989G=F9HCACFH;5;9CIF5GG9HGCFK<9B9L=GH=B;@C5BG7CA98I95B8H<95GG9HGB998HC69F9:=B5B798K9A5MBCH69 56@9HCCFA5M7<CCG9BCHHC:=B5B79H<95GG9HG5B8K9KCI@869F9EI=F98HCIG975G<HCDIF7<5G9CFF9D5MCIHGH5B8=B; C6@=;5H=CBG

)IF=B56=@=HMHCIG9896HHC:=B5B79CFF9:=B5B79CIF5GG9HG7CI@8F98I79H<9BIA69FC:5GG9HGK975B57EI=F9K<=7< 7CI@8F98I79CIFCD9F5H=B;75G<:@CK5B8H<95ACIBHC:75G<8=GHF=6IH=CBGK975BA5?9CBCIFCAACB-HC7?CF*F9:9FF98 -HC7?
"=;<9F7CGHGC:75D=H5@5@GC7CI@8B9;5H=J9@M=AD57HCIFCD9F5H=B;75G<:@CK5B8F9HIFBGCBCIF5GG9HG

0%4'#5'5+0+06'4'564#6'5%17.&+0%4'#5'6*'#/17061(174&'\$62#;/'065#0&#&8'45'.;#(('%6174#\$+.+6;612#; &+564+\$76+10561174561%-*1.&'45

19<5J9=B7IFF98=B896H98B9GG5B8=BH<9:IHIF9A5M=B7IF588=H=CB5@=B896H98B9GGH<5H695FG=BH9F9GH5H5J5F=56@9 F5H9
.CH<99LH9BHH<5HK9=B7IFJ5F=56@9F5H9896H5B88CBCH<98;9CIF9LDCGIF9H<9F9IB89F=B7F95G9G=B=BH9F9GHF5H9GKCI@8 =B7F95G9H<95ACIBHGD5M56@9IB89FGI7<=B896H98B9GGK<=7<7CI@8F98I79CIFCD9F5H=B;75G<:@CKG5B8CIF56=@=HMHCD5M 8=GHF=6IH=CBGHCCIFGHC7?<C@89FG

B588=H=CB=:CIF9L=GH=B;=B896H98B9GGA5HIF9GCFCH<9FK=G9697CA9GD5M56@98IF=B;5 D9F=C8C:F=G=B;=BH9F9GHF5H9GK97CI@869F9EI=F98HC@=EI=85H9CB9CFACF9C:CIF5GG9HG5HH=A9GH<5HA5MDF9J9BHF95@=N5H=CB C:H<9A5L=AIAF9HIFBCBGI7<5GG9HG

"'/#;016\$'#\$.'61)'0'4#6'57((+%+'06%#5*(.1961/''6174&'\$65'48+%'1\$.+)#6+105

)IF56=@=HMHCA5?9D5MA9BHGCB5B8HCF9:=B5B79CIF=B896H98B9GG5B8HC:IB8CIFCD9F5H=CBGKCF?=B;75D=H5@5B8 75D=H5@9LD9B8=HIF9G89D9B8GCBCIF56=@=HMHC;9B9F5H975G<
.C579FH5=B9LH9BHCIF75G:@CK=GGI697HHC;9B9F5@97CBCA=7 =B8IGHFM:=B5B7=5@7CAD9H=H=J9CD9F5H=B;@9;=G@5H=J9F9;I@5HCFM5B8CH<9F:57HCFGA5BMC:K<=7<5F969MCB8CIF7CBHFC@

1975BBCH5GGIF9CIFGHC7?<C@89FGH<5HCIF6IG=B9GGK=@@;9B9F5H9GI::=7=9BH75G<:@CK:FCACD9F5H=CBGCFH<5H:IHIF9 GCIF79GC:75G<K=@@695J5=@56@9HCIG=B5B5ACIBHGI::=7=9BHHC9B56@9IGHCD5M5ACIBHG8I9CBCIF=B896H98B9GGCFHC:IB8 CIFCH<9F@=EI=8=HMB998G

88=H=CB5@@M=:K9=B7IF588=H=CB5@=B896H98B9GG=B7CBB97H=CBK=H<5BM:IHIF989D@CMA9BHC:75D=H5@CF89J9@CDA9BH DFC>97HGCF:CF5BMCH<9FDIFDCG9CIF896HG9FJ=79C6@=;5H=CBG7CI@8=B7F95G9
19A5MB998HCF9:=B5B795@@CF5DCFH=CBC:CIF

.56@9C:CBH9BHG

=B896H98B9GG69:CF9A5HIF=HM
)IF56=@=HMHCF9:=B5B79CIF=B896H98B9GGCFC6H5=B588=H=CB5@:=B5B7=B;K=@@89D9B8CB5ACB; CH<9FH<=B;G

• P CIF:=B5B7=5@7CB8=H=CB5B8A5F?9H7CB8=H=CBG5HH<9H=A9
• P F9GHF=7H=CBG=BH<95;F99A9BHG;CJ9FB=B;CIF=B896H98B9GG
• P ;9B9F5@97CBCA=75B875D=H5@A5F?9H7CB8=H=CBG
• P H<95J5=@56=@=HMC:7F98=H:FCA65B?GCFCH<9F@9B89FG5B8
• P CIFF9GI@HGC:CD9F5H=CBG

G5F9GI@HK9A5MBCH6956@9HCF9:=B5B79CIF=B896H98B9GGCB7CAA9F7=5@@MF95GCB56@9H9FAGCF5H5@@

:K98CBCH ;9B9F5H9GI::=7=9BH75G<:@CK:FCACD9F5H=CBG5B8588=H=CB5@6CFFCK=B;GCFF9:=B5B7=B;CFDFC7998GC:5GG9HG5@9GCFCH<9F GCIF79GC:75G<5F9BCH5J5=@56@9HCIGK9A5MBCH<5J9GI::=7=9BH75G<HC9B56@9IGHCA99H5@@C:CIFC6@=;5H=CBG

77CF8=B;@M =:K975BBCHG9FJ=79CIF=B896H98B9GGK9A5M<5J9HCH5?957H=CBGGI7<5GG99?=B;588=H=CB5@9EI=HMCF89@5M=B;5BMGHF5H9;=7 57EI=G=H=CBG5B85@@=5B79GCF75D=H5@9LD9B8=HIF9G5BMC:K<=7<7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@ 7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C: 8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

'0&'45/#;4'37+4'7561'06'4+0614'564+%6+8'%18'0#0654'.#6+0)6117412'4#6+1059*+%*%17.&.+/+6174#\$+.+6;61/#-' &+564+\$76+105101741//1061%-144'('44'&61%-

B7CBB97H=CBK=H<DFCJ=8=B;IG:=B5B7=B;5@9B89F7CI@8=ADCG9F9GHF=7H=CBGCBIGH<5H5::97HCIF8=GHF=6IH=CB5B8 CD9F5H=B;DC@=7=9G5B8CIF56=@=HMHC=B7IF588=H=CB5@896H

&C5B8C7IA9BHGK99BH9F=BHCA5M7CBH5=B7CJ9B5BHGH<5H@=A=HCIF 56=@=HMHC:IFH<9FACFH;5;9H<9DFCD9FHMCF8=G7CBH=BI9=BGIF5B797CJ9F5;9
.<9G9CFCH<9F@=A=H5H=CBG=ADCG986M5@9B89FA5M 58J9FG9@M5::97HCIF:@9L=6=@=HM5B8@=A=HCIF56=@=HMHCD5M8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

06'4'5610.;+0&'\$6'&0'55/#;+0%4'#5'1744+5-1(&'(#7.6#0&7.6+/#6'.;/#;4'&7%'174(70&5#8#+.#\$.'(14&+564+\$76+1061 174561%-*1.&'45

19A5M:=B5B79GCA9C:CIFDFCD9FHM57EI=G=H=CBGIG=B;=BH9F9GH?CB@MACFH;5;9=B896H98B9GG
IF=B;H<9=BH9F9GH?CB@M D9F=C8H<95ACIBHC:957<G7<98I@98D5MA9BHK=@@69@9GGH<5BH<5HC:5HF58=H=CB5@5ACFH=N=B;ACFH;5;9@C5B
.<9DF=B7=D5@ 65@5B79C:H<9ACFH;5;9@C5BK=@@BCH69F98I7989L79DH=BH<975G9C:DF9D5MA9BHG6975IG9H<9F95F9BCG7<98I@98ACBH<@M D5MA9BHGC:DF=B7=D5@8IF=B;H<=GD9F=C8
:H9FH<9=BH9F9GH?CB@MD9F=C8K9K=@@69F9EI=F989=H<9FHCA5?9G7<98I@98D5MA9BHG C:5ACFH=N98DF=B7=D5@5B8=BH9F9GHCFHCA5?95@IAD?GIACFT65@@CCBUD5MA9BH5HA5HIF=HM
.<9G9F9EI=F98D5MA9BHGK=@@ =B7F95G9H<95ACIBHC:CIFG7<98I@98D5MA9BHG5B8A5M=B7F95G9CIFF=G?C:89:5I@HIB89FH<9F9@5H98ACFH;5;9@C5B

:H<9 ACFH;5;9@C5B<5G5B58>IGH56@9=BH9F9GHF5H9H<95ACIBHC:CIFG7<98I@98D5MA9BHG5@GCA5M=B7F95G95H5H=A9C:F=G=B; =BH9F9GHF5H9G

B7F95G98D5MA9BHG5B8GI6GH5BH=5@DF=B7=D5@CF65@@CCBD5MA9BHGK=@@F98I79H<9:IB8G5J5=@56@9:CF8=GHF=6IH=CB HCCIFGHC7?<C@89FG6975IG975G<CH<9FK=G95J5=@56@9:CF8=GHF=6IH=CBK=@@69F9EI=F98HCD5MDF=B7=D5@5B8=BH9F9GH5GGC7=5H98 K=H<H<9G9ACFH;5;9@C5BG

)IF56=@=HMHCA5?9565@@CCBD5MA9BH5HA5HIF=HM=GIB79FH5=B5B8A5M89D9B8IDCBCIF56=@=HMHCC6H5=B588=H=CB5@ :=B5B7=B;CFCIF56=@=HMHCG9@@H<9DFCD9FHM
HH<9H=A9H<965@@CCBD5MA9BH=G8I9K9A5MCFA5MBCH6956@9HCF9:=B5B79H<9 @C5BCBH9FAG5G:5JCF56@95GH<9CF=;=B5@@C5BCFG9@@H<9DFCD9FHM5H5DF=79GI::=7=9BHHCA5?9H<965@@CCBD5MA9BH
.<99::97H C:5F9:=B5B7=B;CFG5@97CI@85::97HH<9F5H9C:F9HIFBHCGHC7?<C@89FG5B8H<9DFC>97H98H=A9C:8=GDCG=H=CBC:CIF5GG9HG

B 588=H=CBD5MA9BHGC:DF=B7=D5@5B8=BH9F9GHA589HCG9FJ=79CIF896HGA5M@95J9IGK=H<=BGI::=7=9BH75G<HCD5MH<9 8=GHF=6IH=CBGH<5HK95F9F9EI=F98HCD5MHCA5=BH5=BCIFEI5@=:=75H=CB5G5,#.

BMC:H<9G9F9GI@HGKCI@8<5J95G=;B=:=75BH B9;5H=J9=AD57HCBH<9J5@I9C:CIFG97IF=H=9G

"' /#; +06*'(7674' '06'4 +061*'&)+0)64#05#%6+1056*#6%17.&':215'7561%106+0)'06.+#\$+.+6+'5+06*'(7674'#0& /#6'4+#..;#&8'45'.;+/2#%6174(+0#0%+#.%10&+6+10#0&4'57.651(12'4#6+105

-I6>97HHCA5=BH5=B=B;CIFEI5@=:=75H=CB5G5,#.K9A5M=BH<9:IHIF99BH9F=BHC<98;=B;HF5BG57H=CBGH<5H7CI@8 F9EI=F9IGHC:IB875G<D5MA9BHG=B79FH5=B7=F7IAGH5B79G9
;
H<995F@MH9FA=B5H=CBC:H<9<98;=B;=BGHFIA9BH75IG986M5B 9J9BHC:89:5I@HCFCH<9F95F@MH9FA=B5H=CB9J9BHCFH<9897=G=CB6M57CIBH9FD5FHMHCF9EI9GHA5F;=BG97IF=H=9G=H=G7CBHF57HI5@@M CK98IB89FH<9H9FAGC:H<9<98;=B;=BGHFIA9BHK<=7<7CI@8=BHIFBF9GI@H=B97CBCA=7@CGG9GHCIG

B588=H=CB79FH5=BC:H<9<98;=B;=BGHFIA9BHGH<5HK9A5M9BH9F=BHC7CI@8=BJC@J9588=H=CB5@F=G?G=:H<9M5F9BCH HF5898CBF9;I@5H989L7<5B;9G;I5F5BH9986M5B9L7<5B;9CFCIF7@95F=B;<CIG9CFF9;I@5H986M5BM/

CF:CF9=;B ;CJ9FBA9BH5@5IH<CF=H=9G

H75BBCH695GGIF98H<5H5@=EI=8G97CB85FMA5F?9HK=@@9L=GH:CF<98;=B;=BGHFIA9BHGH<5HK9A5M 9BH9F=BHC=BH<9:IHIF95B8K9A5M69F9EI=F98HCA5=BH5=B5DCG=H=CBIBH=@9L9F7=G9CF9LD=F5H=CBK<=7<7CI@8F9GI@H=B G=;B=:=75BH@CGG9G

We intend to record any derivative and hedging transactions we enter into in accordance with GAAP. However, we may choose not to pursue, or fail to qualify for, hedge accounting treatment relating to such derivative instruments. As a result, our operating results may suffer because losses, if any, on these derivative instruments may not be offset by a change in the fair value of the related hedged transaction or item. Any losses sustained as a result of our hedging transactions would be reflected in our results of operations, and our ability to fund these obligations will depend on the liquidity of our assets and access to capital at the time, and the need to fund these obligations could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

We may be adversely affected by the potential discontinuation of the London Interbank Offered Rate ("LIBOR").

In July 2017, the Financial Conduct Authority in the United Kingdom, which regulates LIBOR, announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after December 31, 2021. In the event that LIBOR is discontinued, the interest rate for any of our indebtedness that is indexed to LIBOR at the time of discontinuation will be based on a replacement rate or an alternate base rate as specified in the applicable documentation governing such indebtedness or as otherwise agreed by us and the applicable lender. Such an event would not affect our ability to borrow or maintain already outstanding borrowings, but the replacement rate or alternate base rate could be higher or more volatile than LIBOR prior to its discontinuance. For instance, as of December 31, 2020, we had \$166.5 million of outstanding indebtedness that was indexed to LIBOR under our revolving credit facility, which allows us to borrow up to \$209.5 million, subject to a borrowing base calculation. Additionally, as of December 31, 2020, we had \$27.1 million of junior subordinated notes and \$14.2 million of SBA 7(a) loan-backed notes that were indexed to LIBOR. The expected transition away from LIBOR and the potential discontinuation of LIBOR after 2021 is unclear, but these changes could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

Risks Related to Our Lending Operations

Our lending operations expose us to a high degree of risk associated with real estate.

The performance and value of our loans depends upon many factors beyond our control. The ultimate performance and value of our loans are subject to risks associated with the ownership of the properties which collateralize our loans, including the property owner's ability to operty with sufficient cash flow to meet debt service requirements. The performance and value of the properties collateralizing our loans may be adversely affected by:

• · changes in national or regional economic conditions;
• · changes in real estate market conditions due to changes in national, regional or local economic conditions or property market characteristics;
• · competition from other properties;
• changes in interest rates and the condition of the debt and equity capital markets;
• · the ongoing need for capital repairs and improvements;
• · increases in real estate tax rates and other operating expenses (including utilities);
• adverse changes in governmental rules and fiscal policies; acts of God, including earthquakes, hurricanes, fires and other natural disasters; pandemic outbreaks and other global health emergencies (including as a result of the outbreak of COVID-19 that began in the fourth quarter of 2019); disruptive global political events, including terrorist activity and war; or a decrease in the availability of or an increase in the cost of insurance;
• · adverse changes in zoning laws;
• · the impact of environmental legislation and compliance with environmental laws; and
• other factors that are beyond our control of the control of the commercial property owners.

In the event that any of the properties underlying our loans experience any of the foregoing events or occurrences, the value of, and return on, such loans may be negatively impacted, which in turn could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

There are significant risks related to loans originated under the SBA 7(a) Program.

Many of the borrowers under our SBA 7(a) Program are privately-owned businesses. There is typically no publicly available information about these businesses; therefore, we must rely on our own due diligence to obtain information in connection with our decisions. Our borrowers may not meet net income, cash flow and other coverage tests typically imposed 6M65B?G
6CFFCK9FVG56=@=HMHCF9D5M=HG@C5BA5M6958J9FG9@M=AD57H986MBIA9FCIG:57HCFG=B7@I8=B;58CKBHIFB=B=HG =B8IGHFMCFCH<9FB9;5H=J9@C75@CFA57FC?97CBCA=77CB8=H=CBG
9H9F=CF5H=CB=B56CFFCK9FVG:=B5B7=5@7CB8=H=CB5B8DFCGD97HG A5M69577CAD5B=986M89H9F=CF5H=CB=BH<97C@@5H9F5@:CFH<9@C5B

B588=H=CBGA5@@6IG=B9GG9GHMD=75@@M89D9B8CBH<9 A5B5;9A9BHH5@9BHG5B89::CFHGC:CB9D9FGCBCF5GA5@@;FCIDC:D9CD@9:CFH<9=FGI779GG

.<9@CGGC:G9FJ=79GC:CB9CFACF9 C:H<9G9D9FGCBG7CI@8<5J95B58J9FG9=AD57HCBH<9CD9F5H=CBGC:H<9GA5@@6IG=B9GG
-A5@@7CAD5B=9G5F9HMD=75@@MACF9 JI@B9F56@9HC7IGHCA9FDF9:9F9B79GA5F?9H7CB8=H=CBG5B897CBCA=78CKBHIFBG5B8C:H9BB998588=H=CB5@75D=H5@HCA5=BH5=B H<96IG=B9GG9LD5B8CF7CAD9H9
.<9G9:57HCFGA5M<5J95B=AD57HCBH<9I@H=A5H9F97CJ9FMC:CIF@C5BGF979=J56@9:FCAGI7< 6IG=B9GG9G
&C5BGHCGA5@@6IG=B9GG9GH<9F9:CF9=BJC@J95<=;<89;F99C:6IG=B9GG5B8:=B5B7=5@F=G?K<=7<75BF9GI@H=B GI6GH5BH=5@@CGG9G5B8577CF8=B;@MG<CI@8697CBG=89F98GD97I@5H=J9
.<9:57HCFG89G7F=69856CJ97CI@8<5J95A5H9F=5@58J9FG9 9::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBG CFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

74.1#055'%74'&\$;4'#.'56#6'#0&1742412'46+'5#4'6;2+%#..;+..+37+&#0&6*'+48#.7'5/#;&'%4'#5'

)IF@C5BGG97IF986MF95@9GH5H95B8CIFF95@9GH5H957EI=F98H<FCI;<:CF97@CGIF95F9HMD=75@@M=@@=EI=8
.<9F9:CF9K9 A5M69IB56@9HCJ5FMCIFDCFH:C@=CDFCADH@M=BF9GDCBG9HC7<5B;=B;97CBCA=7:=B5B7=5@5B8=BJ9GHA9BH7CB8=H=CBG
G5 F9GI@HH<9:5=FA5F?9HJ5@I9C:H<9G95GG9HGA5M897F95G9=BH<9:IHIF95B8@CGG9GA5MF9GI@H
.<9=@@=EI=8B5HIF9C:CIF@C5BG A5M58J9FG9@M5::97HCIF56=@=HMHC8=GDCG9C:GI7<@C5BG5HH=A9GK<9B=HA5M6958J5BH5;9CIGCFB979GG5FM:CFIGHC@=EI=85H9 GI7<5GG9HGK<=7<=BHIFB7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G< :@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF *F9:9FF98-HC7?

74.'0&+0)12'4#6+105*#8'#0+0&7564;%10%'064#6+109*+%*/#;0')#6+8'.;+/2#%6174(+0#0%+#.%10&+6+10#0&4'57.651( 12'4#6+105

A5>CF=HMC:CIFF9J9BI9:FCAH<9@9B8=B;CD9F5H=CBG=G;9B9F5H98:FCA@C5BG7C@@5H9F5@=N986M<CGD=H5@=HM DFCD9FH=9G
GC:979A69FCIF@C5BGGI6>97HHC7F98=HF=G?K9F9
7CB79BHF5H98=BH<9<CGD=H5@=HM=B8IGHFM
BM :57HCFGH<5HB9;5H=J9@M=AD57HH<9<CGD=H5@=HM=B8IGHFM=B7@I8=B;H<9CIH6F95?C:)0#?H<5H69;5B=BH<9:CIFH<EI5FH9FC: F979GG=CBGG9J9F9K95H<9F9J9BHGGI7<5G<IFF=75B9G6@=NN5F8G:@CC8G9H7
89DF9GG987CAA9F7=5@F95@9GH5H9A5F?9HG HF5J9@F9GHF=7H=CBG65B?FIDH7=9GCFCH<9FDC@=H=75@CF;9CDC@=H=75@9J9BHGCFH<9=BHFC8I7H=CBC:B9K7CB79DHG5B8DFC8I7HGGI7< 5G=F6B6Q"CA95K5MQ5B80,)Q7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC: CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIF CAACB-HC7?CF*F9:9FF98-HC7?

56#\$.+5*+0).1#0.1554'5'48'5'06#+.55+)0+(+%#06,7&)/'06#0&/#;0')#6+8'.;+/2#%61744'57.651(12'4#6+105

19<5J95EI5FH9F@MF9J=9KDFC79GGHC=89BH=:M5B89J5@I5H9DCH9BH=5@9LDCGIF9HC@C5B@CGG9G
.<989H9FA=B5H=CBC: K<9H<9FG=;B=:=75BH8CI6H9L=GHG5B8K<9H9F5@C5B@CGGF9G9FJ9=GB979GG5FMF9EI=F9GI8;A9BH5B87CBG=89F5H=CBC:H<9:57HG 5B87=F7IAGH5B79G9L=GH=B;5HH<99J5@I5H=CB85H9
88=H=CB5@@M:IFH<9F7<5B;9GHCH<9:57HG5B87=F7IAGH5B79GC:H<9=B8=J=8I5@ 6CFFCK9FGH<9@=A=H98G9FJ=79<CGD=H5@=HM=B8IGHFM5B8H<997CBCAMA5MF9EI=F9H<99GH56@=G<A9BHC:588=H=CB5@@C5B@CGG F9G9FJ9G5B8H<99::97HHCCIFF9GI@HGC:CD9F5H=CBGKCI@86958J9FG9

:CIF>I8;A9BHGIB89F@M=B;H<99GH56@=G<A9BHC:CIF@C5B @CGGF9G9FJ9G5F9BCH7CFF97HCIFF9GI@HGC:CD9F5H=CBGA5M69B9;5H=J9@M=AD57H98

1<9B9J9FCIF6CFFCK9FG9LD9F=9B79G=;B=:=75BHCD9F5H=B;8=::=7I@H=9G5B8K95F9:CF798HC@=EI=85H9H<97C@@5H9F5@ IB89F@M=B;H<9@C5BG@CGG9GA5M69F9@5H=J9@MGI6GH5BH=5@5B87CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@ 7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C: 8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

74#41)4#/.1#05#4'57\$,'%661&'.+037'0%;(14'%.1574'#0&.155#0;14#..1(9*+%*%17.&4'57.6+0.155'5

)IF@C5BGCF=;=B5H98DIFGI5BHHCH<9-5*FC;F5A5F97C@@5H9F5@=N986M=B7CA9?DFC8I7=B;DFCD9FH=9G5B8 HMD=75@@M<5J9D9FGCB5@;I5F5BH99G
.<9G9@C5BG5F9DF98CA=B5BH@MHCCD9F5HCFGC:@=A=H98G9FJ=79<CGD=H5@=HMDFCD9FH=9G
G5 F9GI@HH<9G9CD9F5HCFG5F9GI6>97HHCF=G?G5GGC7=5H98K=H<H<9<CGD=H5@=HM=B8IGHFM=B7@I8=B;H<9CIH6F95?C:)0#?H<5H 69;5B=BH<9:CIFH<EI5FH9FC:F979GG=CBGG9J9F9K95H<9F9J9BHG89DF9GG987CAA9F7=5@F95@9GH5H9A5F?9HGHF5J9@ F9GHF=7H=CBG65B?FIDH7=9GCFCH<9FDC@=H=75@CF;9CDC@=H=75@9J9BHG

)IF-5@C5BGH<5H5J9F95@9GH5H95G7C@@5H9F5@5F9GI697HHCF=G?GC:89@=BEI9B7M5B8:CF97@CGIF9
.<956=@=HM C:56CFFCK9FHCF9D5M5@C5BG97IF986M5B=B7CA9?DFC8I7=B;DFCD9FHMHMD=75@@M=G89D9B89BHDF=A5F=@MIDCBH<9GI779GG:I@ CD9F5H=CBC:GI7<DFCD9FHMF5H<9FH<5BIDCBH<99L=GH9B79C:=B89D9B89BH=B7CA9CF5GG9HGC:H<96CFFCK9F

:H<9B9HCD9F5H=B; =B7CA9C:5B8CF75G<:@CK:FCAH<9DFCD9FHM=GF98I798H<96CFFCK9FVG56=@=HMHCF9D5MH<9@C5BA5M69=AD5=F98

(9H CD9F5H=B;=B7CA9C:5B8CF75G<:@CK:FCA5B=B7CA9?DFC8I7=B;DFCD9FHM75B695::97H986M5ACB;CH<9FH<=B;GH9B5BHA=L

.56@9C:CBH9BHG

GI779GGC:H9B5BH6IG=B9GG9GCBG=H9DFCD9FHMA5B5;9A9BH897=G=CBGDFCD9FHM@C75H=CB5B87CB8=H=CB7CAD9H=H=CB:FCA 7CAD5F56@9HMD9GC:DFCD9FH=9G7<5B;9G=B@5KGH<5H=B7F95G9CD9F5H=B;9LD9BG9GCF@=A=HF9BHGH<5HA5M697<5F;985BMB998HC 588F9GG9BJ=FCBA9BH5@7CBH5A=B5H=CB5HH<9DFCD9FHMH<9C77IFF9B79C:5BMIB=BGIF9875GI5@HM5HH<9DFCD9FHM7<5B;9G=B B5H=CB5@F9;=CB5@CF@C75@97CBCA=77CB8=H=CBG5B8CFGD97=:=7=B8IGHFMG9;A9BHG897@=B9G=BF9;=CB5@CF@C75@F95@9GH5H9 J5@I9G897@=B9G=BF9;=CB5@CF@C75@F9BH5@CFC77ID5B7MF5H9G=B7F95G9G=B=BH9F9GHF5H9GF95@9GH5H9H5LF5H9G5B8CH<9FCD9F5H=B; 9LD9BG9G7<5B;9G=B;CJ9FBA9BH5@FI@9GF9;I@5H=CBG5B8:=G75@DC@=7=9G=B7@I8=B;9BJ=FCBA9BH5@@9;=G@5H=CB57HGC:!C8 H9FFCF=GAGC7=5@IBF9GH5B87=J=@8=GHIF65B79G

BH<99J9BHC:5@C5B89:5I@HK9K=@@695F5F=G?C:@CGGC:DF=B7=D5@HCH<99LH9BHC:5BM89:=7=9B7M69HK99BH<9J5@I9 C:H<97C@@5H9F5@AI@H=D@=986MCIFD9F79BH5;9CKB9FG<=D5B8H<9IB;I5F5BH998DCFH=CBC:H<9DF=B7=D5@5B8577FI98=BH9F9GHCB H<9@C5B

BH<99J9BHC:H<965B?FIDH7MC:H<96CFFCK9FH<9@C5BHCGI7<6CFFCK9FK=@@69899A987C@@5H9F5@=N98CB@MHCH<9 9LH9BHC:H<9J5@I9C:H<9IB89F@M=B;DFCD9FHM5HH<9H=A9C:H<965B?FIDH7M5G89H9FA=B986MH<965B?FIDH7M7CIFH

B 588=H=CBHC@CGG9GF9@5H98HC7C@@5H9F5@89:=7=9B7=9G8IF=B;H<9:CF97@CGIF9DFC79GGK9A5M=B7IF7CGHGF9@5H98HCH<9DFCH97H=CBC: CIF7C@@5H9F5@=B7@I8=B;IBD5=8F95@9GH5H9H5L9G@9;5@:99G:F5B7<=G9:99G=BGIF5B795B8CD9F5H=B;G<CFH:5@@GHCH<99LH9BHH<9 DFCD9FHM=G69=B;CD9F5H986M57CIFH?5DDC=BH98F979=J9F

CF97@CGIF95B865B?FIDH7M5F97CAD@9L5B8GCA9H=A9G@9B;H<MDFC79GG9GH<5H5F9GI6>97HHC:989F5@5B8GH5H9@5KG 5B8F9;I@5H=CBG
B57H=CBHC:CF97@CG9CB5DFCD9FHM=GGI6>97HHCA5BMC:H<989@5MG5B89LD9BG9GC:CH<9F@5KGI=HG=:H<9 89:9B85BHF5=G9G89:9BG9GCF7CIBH9F7@5=AG

BH<99J9BHC:589:5I@H6M5ACFH;5;CFH<9G9F9GHF=7H=CBG5ACB;CH<9FH<=B;GA5M =AD989CIF56=@=HMHC:CF97@CG9CBCFG9@@H<9ACFH;5;98DFCD9FHMCFHCC6H5=BDFC7998GGI::=7=9BHHCF9D5M5@@5ACIBHG8I9IB89F H<9BCH9

IFH<9F6CFFCK9FG<5J9H<9CDH=CBC:G99?=B;:989F5@65B?FIDH7MDFCH97H=CBK<=7<7CI@889@5MH<9:CF97@CGIF9 DFC79GG

B7CB>IB7H=CBK=H<H<965B?FIDH7MDFC79GGH<9H9FAGC:H<9@C5B5;F99A9BHGA5M69AC8=:=98

.MD=75@@M89@5MG=B H<9:CF97@CGIF9DFC79GGK=@@<5J95B9;5H=J9=AD57HCBCIFF9GI@HGC:CD9F5H=CBG5B8CF:=B5B7=5@7CB8=H=CB8I9HC8=F97H5B8 =B8=F97H7CGHG=B7IFF985B8DCGG=6@989H9F=CF5H=CBC:H<9J5@I9C:H<97C@@5H9F5@
:H9F:CF97@CGIF9<5G699B7CAD@9H985@57?C: :IB8GCF75D=H5@A5M:CF79IGHCG9@@H<9IB89F@M=B;DFCD9FHMF9GI@H=B;=B5@CK9FF97CJ9FM9J9BH<CI;<89J9@CD=B;H<9DFCD9FHM DF=CFHC5G5@97CI@8F9GI@H=B5<=;<9FF97CJ9FM

G5F9GI@HC:H<9:57HCFG89G7F=69856CJ989:5I@HGCB-5*FC;F5A@C5BG7CI@8<5J95A5H9F=5@58J9FG99::97HCB CIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHC A5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

746#+./'061(174#\$+.+6;6176+.+<'6*'#41)4#/\$;6*' ('&'4#.)18'40/'06%17.&#&8'45'.;#(('%61744'57.651( 12'4#6+105

195F989D9B89BHIDCBH<9:989F5@;CJ9FBA9BHHCA5=BH5=BH<9-5*FC;F5A
.<9F975B69BC5GGIF5B79H<5HH<9 DFC;F5AK=@@69A5=BH5=B98CFH<5H@C5BGK=@@7CBH=BI9HC69;I5F5BH9985H7IFF9BH@9J9@G

B588=H=CBH<9F975B69BC5GGIF5B79 H<5HCIF-@9B8=B;GI6G=8=5FM =FGH19GH9FB-&#B7

T =FGH19GH9FBUK=@@6956@9HCA5=BH5=B=HGGH5HIG5G5T*F9:9FF98 &9B89FUIB89F*&*5G89:=B9869@CKCFH<5HK975BA5=BH5=BCIF-5@=79BG9

:K975BBCH7CBH=BI9CF=;=B5H=B;5B8G9@@=B;;CJ9FBA9BH;I5F5BH998@C5BG5H7IFF9BH@9J9@GK97CI@89LD9F=9B795 897F95G9=B:IHIF9G9FJ=7=B;GDF958G5B895FB98DF9A=IAG

FCAH=A9?HC?H=A9H<9-<5GF957<98=HG=BH9FB5@6I8;9H98@=A=HG 5B8795G98HC;I5F5BH99@C5BG:CF5GH5H98D9F=C8C:H=A9

B588=H=CBH<9-A5M7<5B;9=HGFI@9GF9;5F8=B;@C5BGCFCB;F9GG A5M58CDH@9;=G@5H=CBCF:5=@HC5DDFCJ956I8;9HH<5HKCI@8<5J9H<99::97HC:8=G7CBH=BI=B;F98I7=B;5J5=@56=@=HMC::IB8G:CF CF7<5B;=B;@C5BDFC;F5AG

(CB?;CJ9FBA9BH5@DFC;F5AG7CI@8F9D@579;CJ9FBA9BHDFC;F5AG:CFGCA96CFFCK9FG6IHH<9H9FAG A=;<HBCH699EI5@@M5779DH56@9

:H<9G97<5B;9GC77IFH<9JC@IA9C:@C5BGHCGA5@@6IG=B9GG9GH<5HBCKEI5@=:M:CF ;CJ9FBA9BH;I5F5BH998@C5BG7CI@8897@=B95G7CI@8H<9DFC:=H56=@=HMC:H<9G9@C5BG

=FGH19GH9FB<5G699B;F5BH98B5H=CB5@DF9:9FF98@9B89FDFC;F5AT*&*UGH5HIG5B8CF=;=B5H9GG9@@G5B8G9FJ=79G GA5@@6IG=B9GG@C5BG5B8=G5IH<CF=N98HCD@579-;I5F5BH99GCB@C5BGK=H<CIHG99?=B;DF=CF-F9J=9K5B85DDFCJ5@
9=B; 5B5H=CB5@@9B89F*&*GH5HIG5@@CKG =FGH19GH9FBHC9LD98=H9@C5BGG=B79 =FGH19GH9FB=GBCHF9EI=F98HCDF9G9BH5DD@=75H=CBGHC H<9-:CF7CB7IFF9BHF9J=9K5B85DDFCJ5@
.<9@CGGC:*&*GH5HIG7CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG :=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@ C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

"'12'4#6'+0#%1/2'6+6+8'/#4-'6(144'#.'56#6'12214670+6+'5#0&(7674'%1/2'6+6+10(14%1//'4%+#.4'#.'56#6' %1..#6'4#.+<'&.1#05/#;.+/+6174#\$+.+6;6114+)+0#6'14&+5215'1(1746#4)'6.1#05#0&%17.&#.51#(('%66*';+'.&1(6*'5' .1#05

195F9=B7CAD9H=H=CBK=H<5BIA69FC:9BH=H=9G:CFH<9HMD9GC:7CAA9F7=5@F95@9GH5H97C@@5H9F5@=N98@C5BGH<5HK9 A5MCF=;=B5H9
.<9G99BH=H=9G=B7@I895ACB;CH<9FG896H:IB8GGD97=5@HM:=B5B797CAD5B=9GG5J=B;G5B8@C5B5GGC7=5H=CBG 65B?G5B8:=B5B7=5@=BGH=HIH=CBG
-CA9C:H<9G97CAD9H=HCFGA5M69GI6GH5BH=5@@M@5F;9F5B8<5J97CBG=89F56@M;F95H9F:=B5B7=5@

technical and marketing resources than we do. Some of these competitors may also have a lower cost of funds and access to funding sources that may not be available to us currently. In addition, many of our competitors may not be subject to operating constraints associated with REIT qualification or maintenance of exclusions from registration under the Investment Company Act. Furthermore, competition may further limit our ability to generate desired returns. Due to this competition, we may not be able to take advantage of attractive opportunities from time to time, and can offer no assurance that we will be able to identify and deploy our capital in a manner consistent with our objective. We cannot guarantee that the competitive pressures we face will not have a material adverse effect on our business, financial condition, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

We may be subject to lender liability claims.

In recent years, a number of judicial decisions have upheld the right of borrowers to sue lending institutions on the basis of various evolving legal theories, collectively termed "lender liability." Generally, lender liability is founded on the premise that a lender has either violated a duty, whether implied or contractual, of good faith and fair the borrower or has assumed a degree of control over the borrower resulting in the creation of a fiduciary duty owed to the borrower or our other creditors or stockholders. There can be no assurance that that such claims will not arise or that we will not be subject to significant liability if a claim of this type did arise.

U.S. Federal Income and Other Tax Risks

Failure to qualify and maintain our qualification as a REIT would have significant alverse consequences to us and the value of our securities.

We believe that we are organized and qualify as a REIT and intend to operate in a manner that will allow us to continue to qualify as a REIT. However, we cannot guarantee that we are qualified as such, or that we will remain qualified as such in the future. This is because qualification as a REIT involves the application of highly technical and complex provisions of the Code as to which there are only limited judicial and administrative interpretations and involves the determination of facts and circumstances not entirely within our control. Future legislations, administrative interpretations or court decisions may significantly change the tax laws or the tax laws with respect to qualification as a REIT for federal income tax purposes or the federal income tax consequences of such qualification.

If we fail to qualify as a REIT, we could face serious tax consequences that could substantially reduce our funds available for payment of distributions to our stockholders for each of the years involved because:

• · we would not be allowed a deduction for dividends paid to stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates;
• · we also could be subject to increased state and local taxes; and
• · unless we are entitled to relief under statutory provisions, we could not elect to be subject to be taxed as a REIT for four taxable years following the year during which we are disqualified.

Any such corporate tax liability could be substantial and would reduce our cash available for, among other things, our operations and distributions to stockholders. As a result of these factors, our failure to qualify as a REIT could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. If we fail to qualify as a REIT for federal income tax purposes and are able to avail ourselves of one or more of the relief provisions under the Code in order to maintain our REIT status, we might nevertheless be required to pay certain penalty taxes for each such failure.

Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.

Income from "qualified dividends" payable to U.S. stockholders that are individuals, trusts and estates are generally subject to tax at preferential rates. Dividends payable by REITs, however, generally are not eligible for the preferential tax rates applicable to qualified dividend income. Although these rules do not adversely affect the taxation of REITs or dividends payable by REITs, to the extent that the preferential rates continue to apply to regular corporate qualified dividends, investors that are individuals, trusts and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could materially and adversely affect the value of the shares of REITs, including the per share trading price of our securities. However, under the Tax Cuts and Jobs Act of 2017 (the "Tax Cuts and Jobs Act") for taxable years prior to 2026, non-corporate U.S. stockholders of REITs may deduct up to 20% of any "qualified REIT dividends." A qualified REIT dividend is defined as any dividend from a REIT that is not a capital gain dividend or a dividend attributable to dividend income from U.S. corporations or certain non-U.S. corporations. A noncorporate U.S. stockholder's ability to claim a deduction equal to 20% of qualified REIT dividends received may be limited by the stockholder's particular circumstances.

74190'45*+21(#0&4'.#6+105*+29+6*1746#:#\$.'57\$5+&+#4+'59+..\$'.+/+6'&#0&#(#+.74'61%1/2.;9+6*6*'.+/+65 917.&,'12#4&+<'17456#675#0&/#;4'57.6+06*'#22.+%#6+101(# -':%+5'6#:

-I6>97HHC79FH5=BF9GHF=7H=CBG5,#.A5MCKBIDHCC:H<9GHC7?C:CB9CFACF9H5L56@9,#.GI6G=8=5F=9G T.,-GU
.,-A5M<C@85GG9HG5B895FB=B7CA9H<5HKCI@8BCH69EI5@=:M=B;5GG9HGCF=B7CA9=:<9@8CF95FB988=F97H@M6M H<9,#.
CH<H<9GI6G=8=5FM5B8H<9,#.AIGH>C=BH@M9@97HHCHF95HH<9GI6G=8=5FM5G5.,7CFDCF5H=CBC:K<=7<5.,- 8=F97H@MCF=B8=F97H@MCKBGACF9H<5BC:H<9JCH=B;DCK9FCFJ5@I9C:H<9GHC7?K=@@5IHCA5H=75@@M69HF95H985G5.,- )J9F5@@BCACF9H<5BC:H<9J5@I9C:5,#.VG5GG9HGA5M7CBG=GHC:GHC7?CFG97IF=H=9GC:CB9CFACF9.,-G
.,- ;9B9F5@@MK=@@D5M=B7CA9H5L5HF9;I@5F7CFDCF5H9F5H9GCB5BMH5L56@9=B7CA9H<5H=H95FBG

B588=H=CBH<9.,-FI@9G@=A=HH<9 898I7H=6=@=HMC:=BH9F9GHD5=8CF577FI986M5.,-HC=HGD5F9BH,#.HC5GGIF9H<5HH<9.,-=GGI6>97HHC5B5DDFCDF=5H9@9J9@C: 7CFDCF5H9H5L5H=CB

.<9FI@9G5@GC=ADCG959L7=G9H5LCB79FH5=BHF5BG57H=CBG69HK99B5.,-5B8=HGD5F9BH,#.H<5H5F9 BCH7CB8I7H98CB5B5FAVG?@9B;H<65G=G

)IF.,-G5F9GI6>97HHCBCFA5@7CFDCF5H9=B7CA9H5L9G
197CBH=BICIG@MACB=HCFH<9J5@I9C:CIF=BJ9GHA9BHG=B .,-G:CFH<9DIFDCG9C:9BGIF=B;7CAD@=5B79K=H<H<9FI@9H<5HBCACF9H<5BC:H<9J5@I9C:CIF5GG9HGA5M7CBG=GHC:.,- GHC7?5B8G97IF=H=9GK<=7<=G5DD@=985HH<99B8C:957<75@9B85FEI5FH9F
.<95;;F9;5H9J5@I9C:CIF.,-GHC7?5B8G97IF=H=9G K5G@9GGH<5BC:H<9J5@I9C:CIFHCH5@5GG9HG=B7@I8=B;CIF.,-GHC7?5B8G97IF=H=9G5GC:979A69F

B 588=H=CBK9G7FIH=B=N95@@C:CIFHF5BG57H=CBGK=H<CIF.,-G:CFH<9DIFDCG9C:9BGIF=B;H<5HH<9M5F99BH9F98=BHCCB5FAVG? @9B;H<H9FAG=BCF89FHC5JC=8=B7IFF=B;H<99L7=G9H5L89G7F=69856CJ9

.<9F95F9BC8=GHF=6IH=CBF9EI=F9A9BHG5DD@=756@9 HCH<9.,-G5B85:H9F?H5L95FB=B;GA5M69F9H5=B98
.<9F975B69BC5GGIF5B79<CK9J9FH<5HK9K=@@6956@9HC7CAD@MK=H< H<9@=A=H5H=CBCBCKB9FG<=DC:.,-GHC7?5B8G97IF=H=9GCB5BCB;C=B;65G=GGC5GHCA5=BH5=B,#.GH5HIGCFHC5JC=8 5DD@=75H=CBC:H<99L7=G9H5L=ADCG98CB79FH5=BBCB?5FAVG?@9B;H<HF5BG57H=CBG

"'/#;\$'57\$,'%661#&8'45'.')+5.#6+8'144')7.#614;6#:%*#0)'56*#6%17.&+0%4'#5'1746#:.+#\$+.+6;144'&7%'174 12'4#6+0)(.':+\$+.+6;+0%.7&+0)%*#0)'54'57.6+0)(41/6*'4'%'06.;2#55'&#:765#0&1\$5%6

BF979BHM95FGBIA9FCIG@9;=G@5H=J9>I8=7=5@5B858A=B=GHF5H=J97<5B;9G<5J9699BA589=BH<9DFCJ=G=CBGC:/

• :989F5@=B7CA9H5L@5KG5DD@=756@9HC=BJ9GHA9BHGG=A=@5FHC5B=BJ9GHA9BH=BG<5F9GC:CIF75D=H5@GHC7?
  88=H=CB5@7<5B;9GHC H<9H5L@5KG5F9@=?9@MHC7CBH=BI9HCC77IF5B8K975BBCH5GGIF9CIFGHC7?<C@89FGH<5H5BMGI7<7<5B;9GK=@@BCH58J9FG9@M 5::97HCIFH5L5H=CB5B8CIF56=@=HMHC7CBH=BI9HCEI5@=:M5G5,#.CFH<9H5L5H=CBC:5GHC7?<C@89F
  BMGI7<7<5B;9G7CI@8 <5J95B58J9FG99::97HCB5B=BJ9GHA9BH=BCIFG<5F9GCFCBH<9A5F?9HJ5@I9CFH<9F9G5@9DCH9BH=5@C:CIF5GG9HG
  )IF GHC7?<C@89FG5F9IF;98HC7CBGI@HK=H<H<9=FH5L58J=GCFGK=H<F9GD97HHCH<9=AD57HC:F979BH@9;=G@5H=CBCBH<9=F=BJ9GHA9BH=B CIFG<5F9G5B8H<9GH5HIGC:@9;=G@5H=J9F9;I@5HCFMCF58A=B=GHF5H=J989J9@CDA9BHG5B8DFCDCG5@G5B8H<9=FDCH9BH=5@9::97HCB5B =BJ9GHA9BH=BCIFG<5F9GCFCBCIF56=@=HMHC7CBH=BI9HCEI5@=:M5G5,#.
  J9B7<5B;9GH<5H8CBCH=ADCG9;F95H9FH5L9GCBIG 7CI@8DCH9BH=5@@MF9GI@H=B58J9FG97CBG9EI9B79GHCCIFGHC7?<C@89FG
  @H<CI;<,#.G;9B9F5@@MF979=J969HH9FH5LHF95HA9BH H<5B9BH=H=9GH5L985GF9;I@5F7CFDCF5H=CBG=H=GDCGG=6@9H<5H:IHIF9@9;=G@5H=CBGI7<5G5897F95G9=B7CFDCF5H9H5LF5H9GKCI@8 F9GI@H=B5,#.<5J=B;:9K9FH5L58J5BH5;9G5B8=H7CI@8897F95G9H<95HHF57H=J9B9GGC:H<9,#.GHFI7HIF9F9@5H=J9HC 7CAD5B=9GH<5H5F9BCHCF;5B=N985G,#.G
  G5F9GI@HCIF7<5FH9FDFCJ=89GCIFC5F8C:=F97HCFGK=H<H<9DCK9FIB89F 79FH5=B7=F7IAGH5B79GHCF9JC?9CFCH<9FK=G9H9FA=B5H9CIF,#.9@97H=CB5B875IG9IGHC69H5L985G5F9;I@5F7CFDCF5H=CB K=H<CIHH<9JCH9C:CIFGHC7?<C@89FG
  )IFC5F8C:=F97HCFG<5G:=8I7=5FM8IH=9GHCIG5B8CIFGHC7?<C@89FG5B87CI@8CB@M 75IG9GI7<7<5B;9G=BCIFH5LHF95HA9BH=:=H89H9FA=B9G=B;CC8:5=H<H<5HGI7<7<5B;9G5F9=BH<969GH=BH9F9GHGC:CIF GHC7?<C@89FG

B588=H=CBH<9.5LIHG5B8\$C6G7HA5?9GG=;B=:=75BH7<5B;9GHCH<9/

:989F5@=B7CA9H5LFI@9G:CFH5L5H=CBC: =B8=J=8I5@G5B86IG=B9GG9G;9B9F5@@M9::97H=J9:CFH5L56@9M95FG69;=BB=B;5:H9F979A69F

B588=H=CBHCF98I7=B; 7CFDCF5H95B8=B8=J=8I5@H5LF5H9GH<9.5LIHG5B8\$C6G7H9@=A=B5H9GCFF9GHF=7HGJ5F=CIG898I7H=CBG

'5BMC:H<97<5B;9G 5DD@=756@9HC=B8=J=8I5@G5F9H9ADCF5FM5B85DD@MCB@MHCH5L56@9M95FG69;=BB=B;5:H9F979A69F5B869:CF9\$5BI5FM .<9.5LIHG5B8\$C6G7HA5?9GBIA9FCIG@5F;95B8GA5@@7<5B;9GHCH<9H5LFI@9GH<5H8CBCH5::97HH<9,#. EI5@=:=75H=CBFI@9G8=F97H@M6IHA5MCH<9FK=G95::97HIGCFCIFGHC7?<C@89FG5B87CI@8=AD57HH<9;9C;F5D<=7A5F?9HG=BK<=7< K9CD9F5H95GK9@@5GCIFH9B5BHG=BK5MG6CH<DCG=H=J95B8B9;5H=J9H<5H5F98=::=7I@HHC5BH=7=D5H9
CF9L5AD@9H<9@=A=H5H=CB =BH<9.5LIHG5B8\$C6G7HCBH9898I7H=6=@=HMC:79FH5=BGH5H95B8@C75@H5L9GA5MA5?9CD9F5H=B;=BIF=G8=7H=CBGH<5H =ADCG9GI7<H5L9G5H<=;<9FF5H9G@9GG89G=F56@9H<5BCD9F5H=B;=B>IF=G8=7H=CBG=ADCG=B;GI7<H5L9G5H@CK9FF5H9G

1<=@9H<97<5B;9G=BH<9.5LIHG5B8\$C6G7H;9B9F5@@M5DD95FHC69:5JCF56@9K=H<F9GD97HHC,#.GH<99LH9BG=J9 7<5B;9GHCBCB?,#.DFCJ=G=CBG=BH<9C89A5M<5J9IB5BH=7=D5H989::97HGCBIGCFCIFGHC7?<C@89FG
'CF9CJ9F79FH5=B DFCJ=G=CBGC:H<9.5LIHG5B8\$C6G7H;=J9F=G9HC=GGI9GB998=B;7@5F=:=75H=CB5B8IB=BH9B8987CBG9EI9B79GH<5HK=@@<5J9HC 69F9J=G=H98=BGI6G9EI9BHH5L@9;=G@5H=CBCF58A=B=GHF5H=J9;I=85B79
HH<=GDC=BH=H=GBCH7@95F=:CFK<9BCB;F9GGCFH<9 #BH9FB5@,9J9BI9-9FJ=79K=@@F9GC@J9H<9G9=GGI9G

0%'46#+0%+4%7/56#0%'59'/#;\$'57\$,'%661%'46#+0('&'4#.56#6'#0&.1%#.6#:'5#5#9*+%*917.&4'&7%'174 %#5* #8#+.#\$.'(14&+564+\$76+1061174561%-*1.&'45

J9B=:K9EI5@=:M5B8A5=BH5=BCIFGH5HIG5G5,#.K9A5M69GI6>97HHC79FH5=B:989F5@GH5H95B8@C75@H5L9G
CF 9L5AD@9B9H=B7CA9:FCAH<9G5@9C:DFCD9FH=9GH<5H5F9T895@9FUDFCD9FH=9GGC@86M5,#.5TDFC<=6=H98HF5BG57H=CBUIB89F H9C89K=@@69GI697HHC59L7=G9H5L5B8GCA9GH5H95B8@C75@>IF=G8=7H=CBGA5MH5LGCA9CF5@@C:CIF=B7CA9 6975IG9BCH5@@GH5H9G5B8@C75@=H=9GHF95H,#.GH<9G5A95GH<9M5F9HF95H98:CF:989F5@=B7CA9H5LDIFDCG9G
BM:989F5@GH5H9 CF@C75@H5L9GK9D5MK=@@F98I79CIF75G<5J5=@56@9:CF8=GHF=6IH=CBHCCIFGHC7?<C@89FG
'CF9CJ9F5G8=G7IGG9856CJ9CIF .,-G5F9;9B9F5@@MGI6>97HHC7CFDCF5H9=B7CA9H5L9G5B89L7=G9H5L9G=B79FH5=B75G9G
88=H=CB5@@M=:K95F9BCH56@9HCA5?9 GI::=7=9BH8=GHF=6IH=CBGHC9@=A=B5H9CIF,#.H5L56@9=B7CA9K9A5M69GI6>97HHCH5L5G57CFDCF5H=CBCBCIFIB8=GHF=6IH98 ,#.H5L56@9=B7CA9
19A5M5@GC897=89HCF9H5=B=B7CA9K995FB:FCAH<9G5@9CFCH<9F8=GDCG=H=CBGC:CIFDFCD9FH=9G5B8 D5M=B7CA9H5L8=F97H@MCBGI7<=B7CA9

BH<5H9J9BHCIFGHC7?<C@89FGKCI@869HF95H985G=:H<9M95FB98H<5H=B7CA95B8D5=8 H<9H5LCB=H8=F97H@M

"CK9J9FGHC7?<C@89FGH<5H5F9H5L?9L9ADHGI7<5G7<5F=H=9GCFEI5@=:=98D9BG=CBD@5BGKCI@8<5J9BC 69B9:=H:FCAH<9=F899A98D5MA9BHC:GI7<H5L@=56=@=HM

#007#. &+564+\$76+10 4'37+4'/'065 /#; (14%' 75 61 (14)1 16*'49+5' #664#%6+8' 12214670+6+'5 14 \$14419 (70&5 &74+0) 70(#814#\$.'/#4-'6%10&+6+105*+5%17.&&'.#;14*+0&'4174#\$+.+6;61/''61741\$,'%6+8'5#0&4'&7%'174561%-*1.&'45@ 18'4#..4'6740

BCF89FHCEI5@=:M5G5,#.K9AIGH8=GHF=6IH95BBI5@@MHCCIFGHC7?<C@89FG5H@95GHC:CIF,#.H5L56@9=B7CA9 K<=7<8C9GBCH9EI5@B9H=B7CA95G75@7I@5H98=B577CF85B79K=H<!*89H9FA=B98K=H<CIHF9;5F8HCH<9898I7H=CB:CF 8=J=89B8GD5=85B89L7@I8=B;5BMB9H75D=H5@;5=B

19K=@@69GI6>97HHC/
:989F5@=B7CA9H5LCBCIFIB8=GHF=6IH98H5L56@9 =B7CA95B8B9H75D=H5@;5=B5B8HC5BCB898I7H=6@99L7=G9H5LCB5BM5ACIBH6MK<=7<8=J=89B8GK9D5MK=H<F9GD97HHC 5BM75@9B85FM95F5F9@9GGH<5BH<9GIAC:=C:CIFCF8=B5FM=B7CA9==C:CIF75D=H5@;5=BB9H=B7CA95B8 ===C:CIFIB8=GHF=6IH98=B7CA9:FCADF=CFM95FG

IFH<9FHCA5=BH5=BCIFEI5@=:=75H=CB5G5,#.K9AIGH9BGIF9H<5HK9A99HH<9,#.;FCGG=B7CA9H9GHG5BBI5@@M 5B8H<5H5HH<99B8C:957<75@9B85FEI5FH9F5H@95GHC:H<9J5@I9C:CIF5GG9HG7CBG=GHGC:75G<75G<=H9AG;CJ9FBA9BH G97IF=H=9G5B8EI5@=:=98,#.F95@9GH5H95GG9HG=B7@I8=B;79FH5=BACFH;5;9@C5BG5B879FH5=B?=B8GC:ACFH;5;9?F9@5H98 G97IF=H=9G
.<9F9A5=B89FC:CIF=BJ9GHA9BH=BG97IF=H=9GCH<9FH<5B;CJ9FBA9BHG97IF=H=9GEI5@=:=98F95@9GH5H95GG9HG5B8GHC7? C:5.,-;9B9F5@@M75BBCH=B7@I89ACF9H<5BC:H<9CIHGH5B8=B;JCH=B;G97IF=H=9GC:5BMCB9=GGI9FCFACF9H<5BC: H<9HCH5@J5@I9C:H<9CIHGH5B8=B;G97IF=H=9GC:5BMCB9=GGI9F

B588=H=CB=B;9B9F5@BCACF9H<5BC:H<9J5@I9C:CIF5GG9HG CH<9FH<5B;CJ9FBA9BHG97IF=H=9GEI5@=:=98F95@9GH5H95GG9HG5B8GHC7?C:5.,-75B7CBG=GHC:H<9G97IF=H=9GC:5BMCB9=GGI9F BCACF9H<5BC:H<9J5@I9C:CIFHCH5@5GG9HG75B69F9DF9G9BH986MG97IF=H=9GC:CB9CFACF9.,-G5B8BCACF9H<5B C:H<9J5@I9C:CIFHCH5@5GG9HG75B69F9DF9G9BH986M79FH5=B896HG97IF=H=9GC:DI6@=7@MC::9F98,#.G

:K9:5=@HC7CAD@MK=H< H<9G9F9EI=F9A9BHG5HH<99B8C:5BM75@9B85FEI5FH9FK9AIGH7CFF97HH<9:5=@IF9K=H<=B85MG5:H9FH<99B8C:H<975@9B85F EI5FH9FCFEI5@=:M:CF79FH5=BGH5HIHCFMF9@=9:DFCJ=G=CBGHC5JC=8@CG=B;CIF,#.EI5@=:=75H=CB5B8GI::9F=B;58J9FG9H5L 7CBG9EI9B79G

.<9:CF9;C=B;F9EI=F9A9BHG7CI@875IG9IGHC8=GHF=6IH95ACIBHGH<5HCH<9FK=G9KCI@869GD9BHCB89D@CM=B;75D=H5@=B F95@9GH5H95GG9HG5B8=H=GDCGG=6@9H<5HK9A=;<H69F9EI=F98HC6CFFCK:IB8GDCGG=6@M5HIB:5JCF56@9F5H9GCFG9@@5GG9HGHC :IB8H<9G98=J=89B8GCFA5?9H5L56@9GHC7?8=J=89B8G
@H<CI;<K9=BH9B8HCA5?98=GHF=6IH=CBGGI::=7=9BHHCA99HH<95BBI5@ 8=GHF=6IH=CBF9EI=F9A9BHG5B8HC5JC=8/
:989F5@=B7CA95B89L7=G9H5L9GCBCIF95FB=B;G=H=GDCGG=6@9H<5HK9A=;<HBCH 5@K5MG6956@9HC8CGC

10 561%-*1.&'45/#;\$'57\$,'%661 ('&'4#.9+6**1.&+0)6#:#0&/#;\$'57\$,'%661 ('&'4#.+0%1/'6#:7210 6*'&+5215+6+101(1745*#4'5

!5=BF97C;B=N986M5BCB?/
GHC7?<C@89FIDCBH<9G5@9CF9L7<5B;9C:G<5F9GC:CIF75D=H5@GHC7?;9B9F5@@MK=@@BCH 69GI6>97HHC/
:989F5@=B7CA9H5L5H=CBIB@9GGGI7<GHC7?7CBGH=HIH9G5T/
F95@DFCD9FHM=BH9F9GHUT/-,*#UIB89FH<9 CF9=;B#BJ9GHA9BH=B,95@*FCD9FHM.5L7HC:T #,*.U
-<5F9GC:CIF75D=H5@GHC7?K=@@BCH7CBGH=HIH95/-,*#GC @CB;5GK95F95T8CA9GH=75@@M?7CBHFC@@98EI5@=:=98=BJ9GHA9BH9BH=HM
U8CA9GH=75@@M?7CBHFC@@98EI5@=:=98=BJ9GHA9BH9BH=HM =B7@I89G5,#.=:5H5@@H=A9G8IF=B;5GD97=:=98H9GH=B;D9F=C8@9GGH<5B=BJ5@I9C:GI7<,#.VGGHC7?=G<9@88=F97H@MCF =B8=F97H@M6MBCB?/
GHC7?<C@89FG
1969@=9J9H<5HK95F958CA9GH=75@@M?7CBHFC@@98EI5@=:=98=BJ9GHA9BH9BH=HM
"CK9J9F 6975IG9CIF75D=H5@GHC7?=G5B8K=@@69:F99@MHF5BG:9F56@9CH<9FH<5BF9GHF=7H=CBGCBCKB9FG<=D5B8HF5BG:9FH<5H5F9=BH9B898HC 5ACB;CH<9FDIFDCG9G5GG=GHIG=BA5=BH5=B=B;CIFEI5@=:=75H=CB5G5,#.:CF:989F5@=B7CA9H5LDIFDCG9G5G89G7F=698=BH<9 F=G?:57HCFT.<9G<5F9HF5BG:9F5B8CKB9FG<=DF9GHF=7H=CBG5DD@=756@9HC,#.G5B87CBH5=B98=BCIF7<5FH9FA5M=B<=6=HA5F?9H 57H=J=HM=BCIFG<5F9GC:GHC7?5B8F9GHF=7HCIF6IG=B9GG7CA6=B5H=CBCDDCFHIB=H=9GUBC5GGIF5B7975B69;=J9BH<5HK95F9CF K=@@6958CA9GH=75@@M?7CBHFC@@98EI5@=:=98=BJ9GHA9BH9BH=HM

J9B=:K98CBCHEI5@=:M5G58CA9GH=75@@M?7CBHFC@@98EI5@=:=98=BJ9GHA9BH9BH=HM5HH<9H=A95BCB?/
GHC7?<C@89F G9@@GCF9L7<5B;9GG<5F9GC:CIF75D=H5@GHC7?;5=B5F=G=B;:FCAGI7<5G5@9CF9L75B;9KCI@8BCH69GI697HHC/
H5L5H=CB IB89F #,*.5G5G5@9C:5/-,*#=:=H<97@5GGC:G<5F9GC:75D=H5@GHC7?GC@8CF9L7<5B;98=GTF9;I@5F@MHF5898U5G89:=B98 6M5DD@=756@9/
.F95GIFMF9;I@5H=CBGCB5B9GH56@=G<98G97IF=H=9GA5F?9H5B8==GI7<BCB?/
GHC7?<C@89FCKB9857HI5@@M CF7CBGHFI7H=J9@MCF@9GGC:H<9CIHGH5B8=B;G<5F9GC:GI7<7@5GGC:75D=H5@GHC7?5H5@@H=A9G8IF=B;H<9G<CFH9FC:H<9:=J9? M95FD9F=C89B8=B;CBH<985H9C:H<9G5@95B8H<9D9F=C8H<5HGI7<BCB?/
GHC7?<C@89FCKB98GI7<G<5F9G

:H<97@5GGC: G<5F9GC:75D=H5@GHC7?GC@8CF9L7<5B;98=GBCHTF9;I@5F@MHF5898U;5=B5F=G=B;:FCAGI7<G5@9CF9L75B;9KCI@8BCH69GI697H HC/

H5L5H=CBIB89F #,*.5G5G5@9C:5/-,*#=:CBH<985H9H<9G<5F9GK9F957EI=F986MH<9BCB?/
GHC7?<C@89F GI7<G<5F9G8=8BCH<5J95:5=FA5F?9HJ5@I9;F95H9FH<5BH<9:5=FA5F?9HJ5@I9CBH<5H85H9C:C:H<9TF9;I@5F@MHF5898U7@5GG C:CIFCIHGH5B8=B;G<5F9GC:75D=H5@GHC7?K=H<H<9@CK9GH:5=FA5F?9HJ5@I95B8H<9H9GH=B7@5IG9=G5@GCG5H=G:=985GC: H<985H9C:5BMGI6G9EI9BH57EI=G=H=CB6MGI7<BCB?/
GHC7?<C@89FC:588=H=CB5@G<5F9GC:H<9G5A9BCB?TF9;I@5F@MHF5898U 7@5GGC:CIF75D=H5@GHC7?=B7@I8=B;5@@GI7<G<5F9GCKB985GC:GI7<85H96MGI7<BCB?/
GHC7?<C@89F
CAD@9L7CBGHFI7H=J9 CKB9FG<=DFI@9G5DD@M:CFDIFDCG9GC:89H9FA=B=B;H<95ACIBHC:G<5F9G<9@86M5BCB?/
GHC7?<C@89F:CFH<9G9DIFDCG9G

1/2.;+0)9+6*4'37+4'/'065/#;.+/+6174#\$+.+6;61*'&)'174.+#\$+.+6+'5'(('%6+8'.;#0&/#;%#75'7561+0%746#: .+#\$+.+6+'5

.<9,#.DFCJ=G=CBGC:H<9C89A5M@=A=HCIF56=@=HMHC<98;9CIF@=56=@=H=9G
BM=B7CA9:FCA5<98;=B;HF5BG57H=CB K99BH9F=BHCHCA5B5;9F=G?C:=BH9F9GHF5H97<5B;9GDF=797<5B;9GCF7IFF9B7M:@I7HI5H=CBGK=H<F9GD97HHC6CFFCK=B;GA589CF HC69A589HC57EI=F9CF75FFMF95@9GH5H95GG9HGCFHCC::G9H79FH5=BCH<9FDCG=H=CBG=:DFCD9F@M=89BH=:=98IB89F5DD@=756@9/
- .F95GIFMF9;I@5H=CBG8C9GBCH7CBGH=HIH9T;FCGG=B7CA9U:CFDIFDCG9GC:H<9CF;FCGG=B7CA9H9GHG
.CH<99LH9BHH<5H K99BH9F=BHCCH<9FHMD9GC:<98;=B;HF5BG57H=CBGH<9=B7CA9:FCAH<CG9HF5BG57H=CBGK=@@@=?9@M69HF95H985GBCB?EI5@=:M=B; =B7CA9:CFDIFDCG9GC:CB9CF6CH<C:H<9;FCGG=B7CA9H9GHG
G5F9GI@HC:H<9G9FI@9GK9A5MB998HC@=A=HCIFIG9C: 58J5BH5;9CIG<98;=B;H97<B=EI9GCF=AD@9A9BHH<CG9<98;9GH<FCI;<5.,.<=G7CI@8=B7F95G9H<97CGHC:CIF<98;=B; 57H=J=H=9G6975IG9CIF.,-GKCI@869GI6>97HHCH5LCB;5=BGCF9LDCG9IGHC;F95H9FF=G?G5GGC7=5H98K=H<7<5B;9G=B=BH9F9GH F5H9GH<5BK9KCI@8CH<9FK=G9K5BHHC695F

B588=H=CB@CGG9G=B5.,-;9B9F5@@MK=@@BCHDFCJ=895BMH5L69B9:=H9L79DH:CF 69=B;75FF=98:CFK5F85;5=BGH:IHIF9H5L56@9=B7CA9C:GI7<.,-

742412'46;6#:'5%17.&+0%4'#5'&7'612412'46;6#:4#6'%*#0)'5144'#55'55/'069*+%*917.&+/2#%6174%#5*(.195

19K=@@69F9EI=F98HCD5MGCA9GH5H95B8@C75@H5L9GCBCIFDFCD9FH=9G
.<9F95@DFCD9FHMH5L9GCBCIFDFCD9FH=9GA5M =B7F95G95GDFCD9FHMH5LF5H9G7<5B;9CF5GCIFDFCD9FH=9G5F95GG9GG98CFF95GG9GG986MH5L=B;5IH<CF=H=9G
.<9F9:CF9H<95ACIBH C:DFCD9FHMH5L9GK9D5M=BH<9:IHIF9A5M=B7F95G9GI6GH5BH=5@@M

:H<9DFCD9FHMH5L9GK9D5M=B7F95G95B8=:5BMGI7<=B7F95G9 =GBCHF9=A6IFG56@9IB89FH<9H9FAGC:CIF@95G9H<9BCIF75G<:@CKGK=@@69=AD57H98K<=7<=BHIFB7CI@8<5J95A5H9F=5@ 58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79 C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

561%-*1.&'45%#04'%'+8'6#:#\$.'+0%1/'9+6*176%#5*&+564+\$76+105

/B89F79FH5=B7=F7IAGH5B79G,#.G5F9D9FA=HH98HCD5MF9EI=F988=J=89B8G=BG<5F9GC:H<9=FGHC7?F5H<9FH<5B=B75G< #:K9K9F9HC5J5=@CIFG9@J9GC:H<5HCDH=CBCIFGHC7?<C@89FG7CI@869F9EI=F98HCD5MH5L9GCBGI7<GHC7?8=GHF=6IH=CBGK=H<CIH H<969B9:=HC:75G<8=GHF=6IH=CBGHCD5MH<9F9GI@H=B;H5L9G

*'5*#4'64#05('4#0&190'45*+24'564+%6+105#22.+%#\$.'615#0&%106#+0'&+0174%*#46'4/#;+0*+\$+6/#4-'6#%6+8+6; +01745*#4'51(561%-#0&4'564+%6174\$75+0'55%1/\$+0#6+1012214670+6+'5

BCF89FHC7CBH=BI9HCEI5@=:M5G5,#.:=J9CF:9K9F=B8=J=8I5@G5G89:=B98=BH<9C89A5MBCHCKB57HI5@@MCF 7CBGHFI7H=J9@MACF9H<5B=BJ5@I9C:CIF=GGI985B8CIHGH5B8=B;G<5F9GC:GHC7?5H5BMH=A98IF=B;H<9@5GH<5@:C:957< H5L56@9M95FCH<9FH<5BH<9:=FGHM95F:CFK<=7<5,#.9@97H=CB=GA589

HHF=6IH=CBFI@9G=BH<9C8989H9FA=B9=:5BM =B8=J=8I5@CF9BH=HM57HI5@@MCF7CBGHFI7H=J9@MCKBGCIFG<5F9GC:GHC7?IB89FH<=GF9EI=F9A9BH
88=H=CB5@@M5H@95GH D9FGCBGAIGH69B9:=7=5@@MCKBCIFG<5F9GC:GHC7?8IF=B;5H@95GH85MGC:5H5L56@9M95F:CF957<H5L56@9M95FCH<9FH<5BH<9 :=FGHM95F:CFK<=7<5,#.9@97H=CB=GA589
.C<9@D9BGIF9H<5HK9A99HH<9G9H9GHG5ACB;CH<9FDIFDCG9GCIF7<5FH9FF9GHF=7HG H<957EI=G=H=CB5B8CKB9FG<=DC:CIFG<5F9GC:GHC7?

)IF7<5FH9FK=H<79FH5=B9L79DH=CBG5IH<CF=N9GCIF8=F97HCFGHCH5?9GI7<57H=CBG5G5F9B979GG5FM5B858J=G56@9HC DF9G9FJ9CIFEI5@=:=75H=CB5G5,#.
/B@9GG9L9ADH986MH<9C5F8C:=F97HCFG:CF5G@CB;5GK97CBH=BI9HCEI5@=:M5G5 ,#.CIF7<5FH9FDFC<=6=HG5ACB;CH<9F@=A=H5H=CBGCBCKB9FG<=D5B8HF5BG:9FC:G<5F9GC:CIFGHC7?5BMD9FGCB:FCA 69B9:=7=5@@MCF7CBGHFI7H=J9@MCKB=B;5DD@M=B;79FH5=B5HHF=6IH=CBFI@9GIB89FH<9C89ACF9H<5B
=BJ5@I9CF=B BIA69FC:G<5F9GK<=7<9J9F=GACF9F9GHF=7H=J9C:H<95;;F9;5H9C:CIFCIHGH5B8=B;G<5F9GC:75D=H5@GHC7?5B8ACF9H<5B =BJ5@I9CF=BBIA69FC:G<5F9GK<=7<9J9F=GACF9F9GHF=7H=J9C:CIFCAACB-HC7?
.<9C5F8C:=F97HCFG=B=HG GC@98=G7F9H=CB5B8IDCBF979=DHC:79FH5=BF9DF9G9BH5H=CBG5B8IB89FH5?=B;GA5M9L9ADH5D9FGCBDFCGD97H=J9@MCF

F9HFCGD97H=J9@M:FCAH<9CKB9FG<=D@=A=HG
"CK9J9FH<9C5F8C:=F97HCFGA5MBCH5ACB;CH<9F@=A=H5H=CBG;F5BH5B 9L9ADH=CB:FCAH<9G9CKB9FG<=DF9GHF=7H=CBGHC5BMDFCDCG98HF5BG:9F99K<CG9CKB9FG<=D8=F97HCF=B8=F97H=B9L79GGC:H<9 CKB9FG<=D@=A=HKCI@8F9GI@H=BH<9H9FA=B5H=CBC:CIFEI5@=:=75H=CB5G5,#.
.<9G9F9GHF=7H=CBGCBHF5BG:9F5B8 CKB9FG<=DK=@@BCH5DD@M<CK9J9F=:H<9C5F8C:=F97HCFG89H9FA=B9GH<5H=H=GBC@CB;9F=BCIF69GH=BH9F9GHHC7CBH=BI9HC EI5@=:M5G5,#.CFH<5H7CAD@=5B79K=H<H<9F9GHF=7H=CBG=GBC@CB;9FF9EI=F98=BCF89F:CFIGHC7CBH=BI9HCGCEI5@=:M5G5 ,#.

.<9G9CKB9FG<=D@=A=HG7CI@889@5MCFDF9J9BH5HF5BG57H=CBCF57<5B;9=B7CBHFC@H<5HA=;<H=BJC@J95DF9A=IADF=79 :CFCIF75D=H5@GHC7?CFCH<9FK=G969=BH<969GH=BH9F9GHC:CIFGHC7?<C@89FG

'8B:B'4;0C43C>\$DA><<>=(C>2:0=3%A454AA43(C>2:

*'4'+50127\$.+%/#4-'6(14174'4+'54'('44'&61%-14'4+'54'('44'&61%-#0&9'&1016':2'%6#0;57%* /#4-'661&'8'.12

.<9F9=GBCDI6@=7A5F?9H:CFH<9-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?5B8K97IFF9BH@M<5J9BCD@5B HC@=GH5BMC:H<9G9G97IF=H=9GCB5G97IF=H=9G9L7<5B;9CFHC=B7@I895BMC:H<9G9G<5F9G:CFEICH5H=CBCB5BMB5H=CB5@G97IF=H=9G A5F?9H
88=H=CB5@@MCIF7<5FH9F7CBH5=BGF9GHF=7H=CBGCBH<9CKB9FG<=D5B8HF5BG:9FC:CIFG97IF=H=9G5B8H<9G9F9GHF=7H=CBGA5M =B<=6=HMCIF56=@=HMHCG9@@H<9-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?DFCADH@MCF5H5@@

:MCI5F956@9HCG9@@ G<5F9GC:-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?MCIA5MCB@M6956@9HCG9@@H<9A5H5GI6GH5BH=5@8=G7CIBH:FCA H<9DF=79MCID5=8

.<9F9:CF9MCIG<CI@8DIF7<5G9H<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?CB@M5G5 @CB;H9FA=BJ9GHA9BH

'+6*'46*''4+'54'('44'&61%-0146*''4+'54'('44'&61%-*#5\$''04#6'&

19<5J9BCHC6H5=B985B87IFF9BH@M8CBCH=BH9B8HCC6H5=B5F5H=B;:CFH<9-9F=9G*F9:9FF98-HC7?CF-9F=9G *F9:9FF98-HC7?5B8=H=G@=?9@MH<5HB9=H<9FH<9-9F=9G*F9:9FF98-HC7?BCF-9F=9G*F9:9FF98-HC7?K=@@9J9F69F5H98
(C 5GGIF5B7975B69;=J9B<CK9J9FH<5HCB9CFACF9F5H=B;5;9B7=9GK=@@BCH=B89D9B89BH@M89H9FA=B9HC=GGI9GI7<5F5H=B;CF H<5HH<5HK9K=@@BCH9@97H=BH<9:IHIF9HCC6H5=BGI7<5F5H=B;
-I7<5F5H=B;=:=GGI98A5M58J9FG9@M5::97HH<9A5F?9HDF=795B8 CF@=EI=8=HMC:H<9-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?
,5H=B;GCB@MF9:@97HH<9J=9KGC:H<9F5H=B;5;9B7MCF 5;9B7=9G=GGI=B;H<9F5H=B;G5B8GI7<F5H=B;G7CI@869F9J=G988CKBK5F8D@5798CBB9;5H=J9CIH@CC?CFK=H<8F5KB9BH=F9@M5H H<98=G7F9H=CBC:H<9=GGI=B;F5H=B;5;9B7M=:=B=HG>I8;A9BH7=F7IAGH5B79GGCK5FF5BH
1<=@9F5H=B;G8CBCHF9:@97HA5F?9H DF=79GCFH<9GI=H56=@=HMC:5G97IF=HM:CF5D5FH=7I@5F=BJ9GHCFGI7<8CKBK5F8F9J=G=CBCFK=H<8F5K5@C:5F5H=B;7CI@8<5J95B 58J9FG99::97HCBH<9A5F?9HDF=795B8CF@=EI=8=HMC:H<9-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?

"'/#;+557'5*#4'51(1741//1061%-#624+%'5\$'.196*'6*'0%744'06!2'45*#4'1(1741//1061%-9*+%* %17.&/#6'4+#..;4'&7%'174!2'45*#4'1(1741//1061%-

BMG5@9CFCH<9F=GGI5B79C:G<5F9GC:CIFCAACB-HC7?6MIG5H5DF=7969@CKH<9H<9B?7IFF9BH(0D9FG<5F9K=@@ F9GI@H=B5B=AA98=5H9F98I7H=CBC:CIF(0D9FG<5F9
.<=GF98I7H=CBKCI@8C77IF5G5F9GI@HC:5DFCDCFH=CB5H9@M;F95H9F 897F95G9=B5GHC7?<C@89FVG=BH9F9GH=BCIF95FB=B;G5B85GG9HGH<5BH<9=B7F95G9=BCIF5GG9HGF9GI@H=B;:FCAGI7<=GGI5B79
CF 9L5AD@9=:K9=GGI95BIA69FC:G<5F9GC:CAACB-HC7?9EI5@HCC:CIFH<9B?CIHGH5B8=B;G<5F9G5H58=G7CIBH:FCA (05<C@89FC:CIFCAACB-HC7?K<C8C9GBCHD5FH=7=D5H9=BH<5HC::9F=B;HCH<99LH9BHC:=HGDFCDCFH=CB5H9=BH9F9GH=BH<9 CAD5BMK=@@GI::9F(08=@IH=CBC:IDHC
CFD9FC:(0
G89G7F=698=BT#H9A
IG=B9GGS#BJ9GHA9BH '5B5;9A9BH;F99A9BHUK9<5J9D5=85B89LD97H=BH<9:IHIF9HCD5MGCA9:99GD5M56@9HCH<9)D9F5HCF5B8H<9 8A=B=GHF5HCF=BG<5F9GC:CAACB-HC7?5HDF=79G9EI5@HCH<9H<9BACGHF979BH7CBGC@=85H987@CG=B;6=8DF=79C:CIFCAACB -HC7?CBH<9(5G85E!@C65@'5F?9H
IFF9BH@MH<9HF58=B;DF=79C:CIFCAACB-HC7?=GGI6GH5BH=5@@M69@CKCIF(0
G5 F9GI@H5BM=GGI5B79C:G<5F9GC:CIFCAACB-HC7?HCD5MH<9)D9F5HCF5B8CFH<98A=B=GHF5HCFK=@@F9GI@H=B5B=AA98=5H9 F98I7H=CBC:CIF(0D9FG<5F9
975IG9H<9BIA69FC::IHIF9G<5F9GC:CIFCAACB-HC7?H<5HA5M69=GGI9869@CKCIF (0D9FG<5F95B8H<9DF=795B8H=A=B;C:GI7<=GGI5B79G5F9CH<9FK=G9BCH7IFF9BH@M?BCKBCF5BH=7=D5H98K975BBCHDF98=7H H<9F9GI@H=B;F98I7H=CB=BCIF(0D9FG<5F9C:5BMGI7<=GGI5B79

*#0)'5+0/#4-'6%10&+6+105%17.&#&8'45'.;#(('%66*'/#4-'624+%'51(1741//1061%-#0&'4+'54'('44'&61%-

.<9A5F?9HJ5@I9C:CIFCAACB-HC7?5B8-9F=9G&*F9:9FF98-HC7?5GK=H<CH<9FDI6@=7@MHF58989EI=HMG97IF=H=9G K=@@89D9B8CBJ5F=CIGA5F?9H7CB8=H=CBGK<=7<A5M7<5B;9:FCAH=A9HCH=A9

B588=H=CBHCH<997CBCA=79BJ=FCBA9BH5B8 :IHIF9JC@5H=@=HM=BH<9G97IF=H=9G5B87F98=HA5F?9HG=B;9B9F5@H<9A5F?9H7CB8=H=CBG89G7F=698=BH<9F=G?:57HCFT19=BH9B8HC F9@M=BD5FHCB9LH9FB5@GCIF79GC:75D=H5@HC:IB8:IHIF975D=H5@B998G5B8=:K99B7CIBH9F8=::=7I@HM=BC6H5=B=B;GI7<75D=H5@ K9A5MBCH6956@9HCA99HA5HIF=B;C6@=;5H=CBGCFA5?9588=H=CB5@57EI=G=H=CBGUA5M5::97HH<9J5@I9C:CIFCAACB-HC7? #B588=H=CB=B7F95G9G=BA5F?9H=BH9F9GHF5H9GA5M@958=BJ9GHCFGHC89A5B85<=;<9F5BBI5@M=9@8:FCACIF8=GHF=6IH=CBG=B F9@5H=CBHCH<9DF=79C:CIFG97IF=H=9G

.56@9C:CBH9BHG

.<9A5F?9HJ5@I9C:CIFCAACB-HC7?=G65G985ACB;CH<9FH<=B;GIDCBH<9A5F?9HVGD9F79DH=CBC:CIF;FCKH< DCH9BH=5@5B8CIF7IFF9BH5B8DCH9BH=5@:IHIF995FB=B;G5B875G<8=J=89B8G5B8CIF75D=H5@GHFI7HIF9
CBG9EI9BH@MCIFCAACB -HC7?CFCIF-9F=9G&*F9:9FF98-HC7?A5MHF5895HDF=79GH<5H5F9<=;<9FCF@CK9FH<5BCIF(0D9FG<5F9C:CAACB-HC7?CF H<9GH5H98J5@I9C:H<9-9F=9G&*F9:9FF98-HC7?C:
H9T-9F=9G&42F9:9FF98-HC7?-H5H9805@I9UGI697HHC58>IGHA9BH #:CIF:IHIF995FB=B;GCF75G<8=GHF=6IH=CBG5F9@9GGH<5B9LD97H98H<9A5F?9HDF=79GC:CIFCAACB-HC7?CF-9F=9G&*F9:9FF98 -HC7?7CI@8897@=B9

741//1061%-4#0-59+6*4'52'%661&+8+&'0&5,70+1461174'4+'54'('44'&61%-'4+'54'('44'&61%-#0& ':%'26616*'':6'061(6*'0+6+#.+8+&'0&'(+0'&\$'.19174'4+'54'('44'&61%-

.<9F=;<HGC:H<9<C@89FGC:G<5F9GC:CIFCAACB-HC7?HCF979=J98=J=89B8GF5B?>IB=CFHCH<CG9C:H<9<C@89FGC: G<5F9GC:CIF-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B89L79DHHCH<99LH9BHC:H<9#B=H=5@=J=89B8H<9-9F=9G& *F9:9FF98-HC7?

.<9T#B=H=5@=J=89B8U:CF5;=J9B:=G75@M95F=G5A=B=AIA5BBI5@5ACIBHC:8=J=89B8GCBH<9CAACB-HC7?H<5H=G 5BBCIB7986MIG5HH<99B8C:H<9DF=CF:=G75@M95FDFCJ=898H<5HK95F9IB89FBCC6@=;5H=CBHCD5M5BMDCFH=CBC:H<9#B=H=5@ =J=89B8IB@9GG5B8IBH=@CIFC5F8C:=F97HCFG5IH<CF=N9G5B8K9897@5F95BMGI7<8=J=89B8
1<=@9H<9F95F9BC@=A=H5H=CBG CBH<9A5L=AIA5ACIBHC:H<9#B=H=5@=J=89B8H<5H75B69D5=8=B5D5FH=7I@5FM95F=H=GCIF=BH9BH=CBH<5HK9K=@@BCH 5BBCIB795B#B=H=5@=J=89B8:CF5BM;=J9BM95FH<5H65G98CBH<9=B:CFA5H=CBH<9BF95GCB56@M5J5=@56@9HCIG5HH<9H=A9C: 5BBCIB79A9BHK969@=9J9K=@@75IG9IGHC69IB56@9HCA5?95:IHIF98=GHF=6IH=CBCBCIF-9F=9G&*F9:9FF98-HC7?CFCB5BM CH<9FCIHGH5B8=B;G<5F9C:DF9:9FF98GHC7?

)B979A69FK95BBCIB7985B#B=H=5@=J=89B8CBG<5F9GC:CIFCAACB-HC7?:CF:=G75@M95F=BH<9 5;;F9;5H95ACIBHC:
19AIGH897@5F95B8D5M8=J=89B8GCBCIFCAACB-HC7?9EI5@HCH<9#B=H=5@=J=89B8DF=CF HC897@5F=B;5B8D5M=B;5BM8=GHF=6IH=CBGCBCIF-9F=9G&*F9:9FF98-HC7?

/B@9GG:I@@7IAI@5H=J98=J=89B8GCBG<5F9GC:CIF-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?:CF5@@D5GH 8=J=89B8D9F=C8G<5J9699B897@5F985B8D5=8CFG9H5D5FH:CFD5MA9BHK9K=@@BCH897@5F9CFD5M8=J=89B8GK=H<F9GD97HHC 5BMG<5F9GC:CIFCAACB-HC7?:CF5BMD9F=C8

741//1061%-4#0-59+6*4'52'%6614+)*657210.+37+&#6+10&+551.76+10149+0&+0)721(6*'1/2#0;,70+14616*' '4+'54'('44'&61%-'4+'54'('44'&61%-#0&16*'46*#061#.+/+6'&':6'066*''4+'54'('44'&61%-

/DCB5BMJC@IBH5FMCF=BJC@IBH5FM@=EI=85H=CB8=GGC@IH=CBCFK=B8=B;IDC:H<9CAD5BMH<9<C@89FGC:G<5F9GC: *F9:9FF98-HC7?5F99BH=H@98HCF979=J95@=EI=85H=CBDF9:9F9B799EI5@HCH<95DD@=756@9GH5H98J5@I9GC:GI7<G<5F9GD@IG5@@ 577FI986IHIBD5=88=J=89B8GCBGI7<G<5F9GDF=CF5B8=BDF9:9F9B79HC5BM8=GHF=6IH=CBHCH<9<C@89FGC:G<5F9GC:CIFCAACB -HC7?
.<9GH5H98J5@I9C:H<9-9F=9G*F9:9FF98-HC7?=G
D9FG<5F9GI6>97HHC58>IGHA9BHH<9T-9F=9G*F9:9FF98-HC7? -H5H9805@I9UH<9GH5H98J5@I9C:H<9-9F=9G*F9:9FF98-HC7?=G
D9FG<5F9GI6>97HHC58>IGHA9BHH<9T-9F=9G *F9:9FF98-HC7?-H5H9805@I9U5B8H9-9F=9G&42F9:9FF98-HC7?-H5H9805@I9=G GI697HHC58>IGHA9BH
"CK9J9F BCHK=H<GH5B8=B;H<9:CF9;C=B;<C@89FGC:CIFCAACB-HC7?5F99BH=H@98HCF979=J9DF=CFHCCIFD5MA9BHHC<C@89FGC:-9F=9G& *F9:9FF98-HC7?C:5BM577FI985B8IBD5=88=GHF=6IH=CBGCBH<9-9F=9G&*F9:9FF98-HC7?5B5ACIBH9EI5@HCH<95ACIBHC:5BM IBD5=8#B=H=5@=J=89B8

1.&'451(1745'%74+6+'5/#;\$'4'37+4'&614'%1)0+<'6#:#\$.'+0%1/'+0':%'551(#0;%#5*1416*'4&+564+\$76+1054'%'+8'& (41/75#0&010 561%-*1.&'45%17.&\$'57\$,'%6619+6**1.&+0)6#:1057%*#/17065

.<95;F99A9BH;CJ9FB=B;CIFK5FF5BHGHCDIF7<5G9
G<5F9GC:CAACB-HC7?GI6>97HHC58>IGHA9BHIDCBH<9 C77IFF9B79C:79FH5=B9J9BHGGD97=:=98=BGI7<5;F99A9BHT-9F=9G*F9:9FF9815FF5BHGUDFCJ=89GH<5H58>IGHA9BHGA5M69 A589HCH<99L9F7=G9DF=79CFH<9BIA69FC:G<5F9GC:CAACB-HC7?=GGI56@9IDCB9L9F7=G9C:H<9-9F=9G*F9:9FF9815FF5BHG #B79FH5=B75G9GGI7<5B58>IGHA9BH7CI@8F9GI@H=BH<9F97C;B=H=CBC:5H5L56@98=J=89B8HC<C@89FGC:CAACB-HC7?-9F=9G *F9:9FF98-HC7?CF-9F=9G*F9:9FF9815FF5BHG9J9B=:GI7<<C@89FG8CBCHF979=J95BM75G<CFCH<9F8=GHF=6IH=CB:FCAIG

*'4'&'/26+1024+%'1(5*#4'51(4'('44'&61%-/#;\$'2#+&+017451.'&+5%4'6+10+0%#5*14+05*#4'51(1//1061%- 9*+%*4#0-5,70+14611744'('44'&61%-16*'46*#0616*''4+'54'('44'&61%-616*'':6'061(6*'0+6+#.+8+&'0&

19<5J9H<9F=;<H5HCIFCDH=CB5B8=BCIFGC@98=G7F9H=CBHCD5MH<9F989ADH=CBDF=79C:G<5F9GC:*F9:9FF98-HC7? K<9H<9FF9899A985HCIFCDH=CBCF5HH<9CDH=CBC:5<C@89F=B75G<CF=BG<5F9GC:CAACB-HC7?
.<9F989ADH=CBDF=79C: G<5F9GC:CIF-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?A5M69D5=8=BCIFGC@98=G7F9H=CB=B75G<=B/
8C@@5FG T/-UCF=B9EI5@J5@I9H<FCI;<H<9=GGI5B79C:G<5F9GC:CAACB-HC7?65G98CBH<9JC@IA9K9=;<H985J9F5;9DF=79C: CIFCAACB-HC7?:CFH<9HF58=B;85MGDF=CFHCH<9F989ADH=CB
.<9F989ADH=CBDF=79C:G<5F9GC:CIF-9F=9G&*F9:9FF98 -HC7?A5M69D5=8=BCIFGC@98=G7F9H=CB=B75G<=B#GF59@=(9K-<9?9@GT#&-U5HH<9H<9B?7IFF9BH9L7<5B;9F5H9 89H9FA=B98=B577CF85B79K=H<H<9FH=7@9G-IDD@9A9BH5FM89:=B=B;H<9H9FAGC:H<9-9F=9G&*F9:9FF98-HC7?=B9EI5@J5@I9

.56@9C:CBH9BHG

H<FCI;<H<9=GGI5B79C:G<5F9GC:CAACB-HC7?K=H<GI7<J5@I9C:CAACB-HC7?HC69899A98H<9@CK9FC:5CIF(0 D9FG<5F9C:CIFCAACB-HC7?5GACGHF979BH@MDI6@=G<986MH<9CAD5BM5GC:H<99::97H=J985H9C:F989ADH=CB5B86H<9 JC@IA9?K9=;<H985J9F5;9DF=79C:CIFCAACB-HC7?89H9FA=B98=B577CF85B79K=H<H<9FH=7@9G-IDD@9A9BH5FM89:=B=B;H<9 H9FAGC:H<9-9F=9G&*F9:9FF98-HC7?CF=B57CA6=B5H=CBC:75G<=B#&-5B8CIFCAACB-HC7?65G98CBH<97CBJ9FG=CB A97<5B=GAGG9H:CFH<=B55B86F9GD97H=J9@M

.<9F=;<HGC:H<9<C@89FGC:G<5F9GC:CIFCAACB-HC7?5GHC8=GHF=6IH=CBGF5B?>IB=CFHCH<9F=;<HGC:H<9<C@89FGC: G<5F9GC:CIF-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B89L79DHHCH<99LH9BHC:H<9#B=H=5@=J=89B8CIF-9F=9G& *F9:9FF98-HC7?
/B@9GG:I@@7IAI@5H=J98=J=89B8GCBG<5F9GC:CIF*F9:9FF98-HC7?:CF5@@D5GH8=J=89B8D9F=C8G<5J9699B 897@5F985B8D5=8CFG9H5D5FH:CFD5MA9BHK9K=@@BCH897@5F9CFD5M8=J=89B8GK=H<F9GD97HHC5BMG<5F9GC:CIFCAACB -HC7?:CF5BMD9F=C8

.<9F=;<HGC:H<9<C@89FGC:G<5F9GC:CIFCAACB-HC7?IDCB5BMJC@IBH5FMCF=BJC@IBH5FM@=EI=85H=CB8=GGC@IH=CBCF K=B8=B;?IDC:H9CAD5BM5@GCF5B?IB=CFHCH<9F=;<HGC:H<9<C@89FGC:-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98 -HC7?5B8HCH<99LH9BHC:H<9-9F=9G&*F9:9FF98-HC7?-H5H9805@I9<C@89FGC:-9F=9G&*F9:9FF98-HC7?
"CK9J9F<C@89FGC: CIFCAACB-HC7?5F99BH=H@98HCF979=J958=GHF=6IH=CB9EI5@HCH<95;;F9;5H95ACIBHC:5BMIBD5=8#B=H=5@=J=89B8DF=CFHC CIFD5MA9BHC:5BM577FI985B8IBD5=88=J=89B8GCBG<5F9GC:-9F=9G&*F9:9FF98-HC7?

"'*#8'6*'126+10614'&''/5*#4'51(4'('44'&61%-70&'4%'46#+0%+4%7/56#0%'59+6*1766*'%105'061(6*'+4*1.&'45

FCA5B85:H9FH<9:=:H<5BB=J9FG5FMC:H<985H9C:CF=;=B5@=GGI5B79C:5BMG<5F9C:CIF*F9:9FF98-HC7?K9<5J9H<9 F=;<H6IHBCHH<9C6@=;5H=CBHCF9899AGI7<G<5F95H5F989ADH=CBDF=799EI5@HCC:H<9GH5H98J5@I9C:GI7<G<5F9D@IG 5BM577FI986IHIBD5=88=J=89B8G=BF9GD97HC:GI7<G<5F95GC:H<99::97H=J985H9C:H<9F989ADH=CB
"CK9J9F=::CF5BM;=J9B EI5FH9FH<97CB8=H=CBGGD97=:=98=BH<9FH=7@9G-IDD@9A9BH5FM89:=B=B;H<9H9FAGC:H<9-9F=9G&*F9:9FF98-HC7?5F9BCHA9HCF K95F9=B5FF95FGCB8=J=89B8G=BF9GD97HC:H<9-9F=9G&*F9:9FF98-HC7?K9K=@@BCH6956@9HC9L9F7=G9CIFF989ADH=CBF=;<H=B F9GD97HC:H<9-9F=9G&*F9:9FF98-HC7?

"'/#;57(('4(41/&'.#;5+0&'2.1;+0)%#2+6#.9*+%*%17.&#&8'45'.;#(('%6174#\$+.+6;612#;&+564+\$76+10561174 561%-*1.&'45#0&6*'8#.7'1(1745'%74+6+'5

197CI@8GI::9F:FCA89@5MG=B89D@CM=B;75D=H5@D5FH=7I@5F@M=:H<975D=H5@K9F5=G9=B7@I8=B;=BCIF7IFF9BH9EI=HM C::9F=B;G89G7F=698=BT#H9AS'5B5;9A9BHVG=G7IGG=CB5B8B5@MG=GC: =B5B7=5@CB8=H=CB5B8,9GI@HGC:)D9F5H=CBGS &=EI=8=HM5B85D=H5@,9GCIF79GS-CIF79G5B8/G9GC: IB8GUCIHD579GCIF)D9F5HCFVG56=@=HMHC=89BH=:M57EI=G=H=CBG5B8CF 7@CG9CBH<9A
-I7<89@5MGK<=7<A5M6975IG986M5BIA69FC::57HCFG=B7@I8=B;7CAD9H=H=CB=BH<9A5F?9H:CFH<9G5A9F95@ 9GH5H9CDDCFHIB=H=9GA5M58J9FG9@M5::97HCIF56=@=HMHCD5M8=GHF=6IH=CBGHCCIFGHC7?<C@89FG5B8CFH<9J5@I9C:H<9=FCJ9F5@@ F9HIFBGCB=BJ9GHA9BH=BCIFG97IF=H=9G

*'%#5*&+564+\$76+1054'%'+8'&\$;*1.&'451(1744'('44'&61%-#0&1//1061%-/#;\$'.'55(4'37'0614.19'4+0 #/17066*#0':2'%6'&\$;57%**1.&'45

)IFC5F8C:=F97HCFGK=@@89H9FA=B9H<95ACIBH5B8H=A=B;C:8=GHF=6IH=CBGCBCIF*F9:9FF98-HC7?5B8CAACB -HC7?

BA5?=B;H<=G89H9FA=B5H=CBCIFC5F8C:=F97HCFGK=@@7CBG=89F5@@F9@9J5BH:57HCFG=B7@I8=B;H<95ACIBHC:75G< F9GCIF79G5J5=@56@9:CF8=GHF=6IH=CBG75D=H5@GD9B8=B;D@5BG75G<:@CK:=B5B7=5@DCG=H=CB5DD@=756@9F9EI=F9A9BHGC:H<9'!& 5B85BM5DD@=756@97CBHF57HI5@F9GHF=7H=CBG

1975BBCH5GGIF9MCIH<5HK9K=@@6956@9HC7CBG=GH9BH@M;9B9F5H9GI::=7=9BH 5J5=@56@975G<:@CKHC:IB88=GHF=6IH=CBGCBCIF*F9:9FF98-HC7?5B8CAACB-HC7?BCF75BK95GGIF9MCIH<5HGI::=7=9BH75G< K=@@695J5=@56@9HCA5?98=GHF=6IH=CBGCBCIF*F9:9FF98-HC7?5B8CAACB-HC7?=B957<75G99J9BHCH<99LH9BHC:H<9#B=H=5@ =J=89B8
1<=@9<C@89FGC:*F9:9FF98-HC7?5F99BH=H@98HCF979=J9=:5G5B8K<9B5IH<CF=N986MCIFC5F8C:=F97HCFG5B8 897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G7IAI@5H=J975G<8=J=89B8GCB957<G<5F9C:*F9:9FF98-HC7?5H5GD97=:=98F5H9K9 75BBCHDF98=7HK=H<79FH5=BHMH<9H=A=B;C:H<9D5MA9BHC:GI7<8=GHF=6IH=CBG5B8K9A5M69IB56@9HCD5MCFA5=BH5=BGI7< 8=GHF=6IH=CBGCJ9FH=A9

74#\$+.+6;614'&''/5*#4'51(1744'('44'&61%-14612#;&+564+\$76+105101744'('44'&61%-#0&1//1061%-/#; \$'.+/+6'&\$;#4;.#0&.#9

/B89F5DD@=756@9'5FM@5B8@5K57CFDCF5H=CBA5MF9899ACFD5M8=GHF=6IH=CBGCBGHC7?5G@CB;5G5:H9F;=J=B;9::97H HCH<9F989ADH=CBCF8=GHF=6IH=CBH<97CFDCF5H=CB=G56@9HCD5M=HG896HG5GH<9M697CA98I9=BH<9IGI5@7CIFG9H<99EI=HM GC@J9B7MH9GH5B8=HGHCH5@5GG9HG9L7998H<9GIAC:=HGHCH5@@=56=@=H=9GD@IGIB@9GG=HG7<5FH9FD9FA=HGCH<9FK=G9H<95ACIBHH<5H KCI@869B99898=:H<97CFDCF5H=CBK9F9HC698=GGC@J985HH<9H=A9C:H<9F989ADH=CBCF8=GHF=6IH=CBHCG5H=G:MH<9DF9:9F9BH=5@ F=;<HGIDCB8=GGC@IH=CBC:GHC7?<C@89FGK<9BDF9:9F9BH=5@F=;<HGCB8=GGC@IH=CB5F9GID9F=CFHCH<CG9K<CG9GHC7?=G69=B; F9899A98CFCBK<=7<H<98=GHF=6IH=CBG5F969=B;D5=8H<965@5B79G<99HGC@J9B7MH9GH

:H<9CAD5BM=G=BGC@J9BH5H5BMH=A9

we are required to redeem any shares of our Preferred Stock, or at any time we are required to make a distribution on our Preferred Stock or Common Stock, the Company may not be able to effect such redemption or distribution.

Holders of our securities are subject to inflation risk.

Inflation is the reduction in the purchasing power of money resulting from the increase in the price of goods and services. Inflation risk is the inflation-adjusted, or "real," value of an investment in our Common Stock and Preferred Stock, or the income from that investment, will be worth less in the future. As inflation occurs, the real value of our Common Stock and Preferred Stock and distributions payable on such shares may decline because the rate of distribution will remain the same.

If market interest rates go up, prospective purchasers of our Common Stock or Preferred Stock may expect a higher distribution rate on their investment. Higher market interest rates would not, however, result in more funds for us to pay distributions and, to the contrary, would likely increase our borrowing costs and potentially decrease funds available for distributions, and higher interest rates will not change the distribution rate on our Preferred Stock. Thus, higher market interest rates could cause the market price of our Common Stock and Preferred Stock to decline.

The transfer and ownership restrictions applicable to our securities may impair the ability of stockholders to receive shares of our Common Stock upon exercise of the Series A Preferred Warrants and, if the Company elects to pay the redemption price in shares of Common Stock, upon redemption of the Preferred Stock.

Our charter contains restrictions on ownership and transfer of the Preferred Stock and Common Stock that are intended to assist us in maintaining our qualification as a REIT for federal income tax purposes as described in the risk factor "The share transfer and ownership restrictions applicable to REITs and contained in our charter may inhibit market activity in our shares of stock and restrict our business combination opportunities." Additionally, the agreement governing the Series A Preferred Warrants provides that such Series A Preferred Warrants may not be extent such exercise would result in the holder's beneficial or constructive ownership of more than 6.25%, in number or value, whichever is more restrictive, of our outstanding shares of Common Stock immediately after giving effect to the issuance of such shares. These restrictions may impair the ability of stockholders to receive shares of our Common Stock upon exercise of the Series A Prefered Warrants and, if the Company elects to pay the redemption price in shares of Common Stock, upon redemption of the Preferred Stock.

The terms of our Preferred Stock do not contain any financial covenants, other than, with respect to the Series I Prefered Stock, a limited restriction on our ability to issue shares of preferred stock.

Other than as described below, the terms of our Preferred Stock do not limit our ability to incur indebtedness or make distributions or contain any other restrictive financial covenants. The Preferred Stock ranks subordinate to all of our existing and future debt and liabilities. Our future debt agreements may restrict our ability to pay distributions to preferred stockholders or to redeem shares of preferred stock in the event of a default under such debt agreements or in other circumstances. In addition, (i) while the Series A Preferred Stock and Series D Preferred Stock rank senior to our Common Stock with respect to payment of dividends and distributions upon liquidation, dissolution or winding-up, we are allowed to pay dividends on our Common Stock so long as we are current in the payment of dividends on shares of our Series A Preferred Stock and Series D Preferred Stock, and (ii) while the Series L Preferred Stock ranks senior to our Common Stock with respect to payment of distributions, except to the extent of the Initial Dividend, and amounts payable upon our liquidation, dissolution or winding-up, to the extent of the Series L Preferred Stock Stated Value, we are allowed to pay dividends on our Common Stock so long as we are current in the payment of the dividends on shares of our Preferred Stock. Further, the terms of our Series A Preferred Stock and Series D Preferred Stock do not restrict our ability to repurchase shares of our Common Stock so long as we are current in the payment of dividends on shares of our Series D Preferred Stock and Series D Preferred Stock. Such dividends on or repurchases of our Common Stock may reduce the amount of cash on hand to pay the redemption price of our Series A Preferred Stock or Series D Preferred Stock in cash (if we so choose).

Until November 21, 2022, we are prohibited from issuing any shares of preferred stock ranking senior to or on parity with the Series L Preferred Stock with respect to the payment of dividends, other distributions, liquidation or winding up of the Company unless the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio, calculated in accordance with the Articles Supplementary describing the Series L Preferred Stock, is equal to or greater than 1.25:1.00. Our good faith determination of an applicable Series L Preferred Stock Minimum Fixed Charge Coverage Ratio is binding absent manifest error for purposes of this restriction. As of December 31, 2020, we were in compliance with the Series L. Preferred Stock Minimum Fixed Charge Coverage Ratio. In order to maintain our compliance with the Minimum Fixed Charge Coverage Ratio, we issued to the Operator 203,349 shares of Common Stock and 287,199 shares of Series A Preferred Stock, and to the Administrator 11,273 shares of Series A Preferred Stock, in lieu of cash management fees payable to such entities for fees related to the year ending December 31, 2020. It is likely that we will seek to pay some or part of the asset management fees payable to the Operator during the year ended December 31, 2021 in shares of Series A Preferred Stock for the same reason.

1.&'451(1744'('44'&61%-*#8'01816+0)4+)*659+6*4'52'%66157%*5*#4'5

.<9H9FAGC:CIF*F9:9FF98-HC7?8CBCH9BH=H@9<C@89FGHCJCH=B;F=;<HG
)IFCAACB-HC7?=G7IFF9BH@MH<9CB@M7@5GG C:CIF75D=H5@GHC7?H<5H75FF=9G5BMJCH=B;F=;<HG
/B@9GG5B8IBH=@5<C@89FC:CIF*F9:9FF98-HC7?57EI=F9GG<5F9GC:CAACB -HC7?IDCBH<9F989ADH=CBC:GI7<G<5F9GGI7<<C@89FK=@@<5J9BCF=;<HGK=H<F9GD97HHCH<9G<5F9GC:CIFCAACB-HC7? =GGI56@9IDCBF989ADH=CBC:CIF*F9:9FF98-HC7?

:5HCIF8=G7F9H=CB5<C@89FC:CIF*F9:9FF98-HC7?=G=GGI98G<5F9GC:CIF CAACB-HC7?IDCBF989ADH=CBGI7<<C@89FK=@@699BH=H@98HC9L9F7=G9H<9F=;<HGC:<C@89FGC:CIFCAACB-HC7?CB@M5GHC A5HH9FG:CFK<=7<H<9F97CF885H9C77IFG5:H9FH<99::97H=J985H9C:F989ADH=CB

*'190'45*+22'4%'06#)'+06*'1/2#0;1(#*1.&'4/#;\$'%1/'&+.76'&+(9'+557'0'95*#4'51(1//1061%-14 16*'45'%74+6+'5#0&+557#0%'51(#&&+6+10#.24'('44'&561%-1416*'45'%74+6+'5\$;75/#;(746*'457\$14&+0#6'6*'4+)*651( 6*'*1.&'451(1744'('44'&61%-141//1061%-9*+%**1.&'451(4'('44'&61%-/#;\$'%1/'72104'%'+261( 4'&'/26+102#;/'065+05*#4'51(1//1061%-&&+6+10#..;(7674'+557#0%'51(1//1061%-+0%.7&+0)5*#4'5 +557'&+0':%*#0)'(14%105+&'4#6+1072104'&'/26+101(4'('44'&61%-147210':'4%+5'1(#0;'4+'54'('44'& "#44#065/#;%#75'6*'/#4-'624+%'1(1741//1061%-61&4125+)0+(+%#06.;'8'0+(174\$75+0'55+5&1+0)9'..

)IFC5F8C:=F97HCFG=G5IH<CF=N98K=H<CIHGHC7?<C@89F5DDFCJ5@HC75IG9IGHC=GGI9588=H=CB5@G<5F9GC:CAACB -HC7?CFHCF5=G975D=H5@H<FCI;<H<9=GGI5B79C:G<5F9GC:DF9:9FF98GHC7?5B89EI=HMCF896HG97IF=H=9G7CBJ9FH=6@9=BHCCAACB -HC7?DF9:9FF98GHC7?CDH=CBGK5FF5BHG5B8CH<9FF=;<HGCBGI7<H9FAG5B8:CFGI7<7CBG=89F5H=CB5GCIFC5F8C:=F97HCFG=B =HGGC@98=G7F9H=CBA5M89H9FA=B9
BMGI7<=GGI5B797CI@8F9GI@H=B8=@IH=CBC:H<99EI=HMC:CIFGHC7?<C@89FG

B588=H=CBCIF C5F8C:=F97HCFGA5M=B=HGGC@98=G7F9H=CB5IH<CF=N9IGHC=GGI9CAACB-HC7?CFCH<9F9EI=HMCF896HG97IF=H=9GHCD9FGCBG :FCAK<CAK9DIF7<5G9DFCD9FH=9G5GD5FHCF5@@C:H<9DIF7<5G9DF=79C:H<9DFCD9FHMCF:FCAK<CAK9F979=J9G9FJ=79G =B7@I8=B;H<9)D9F5HCFCFH<98A=B=GHF5HCF5GD5FHCF5@@C:H<9D5MA9BH:CFGI7<G9FJ=79G

)IFC5F8C:=F97HCFG=B=HGGC@9 8=G7F9H=CBA5M89H9FA=B9H<9DF=79C:5BMCAACB-HC7?CFCH<9F9EI=HMCF896HG97IF=H=9G=GGI98=B7CBG=89F5H=CBC:GI7< DFCD9FH=9GCFG9FJ=79GDFCJ=898CFHC69DFCJ=898HCIG

19A5MA5?9F989ADH=CBD5MA9BHGIB89FH<9H9FAGC:CIF*F9:9FF98-HC7?=BG<5F9GC:CIFCAACB-HC7?
@H<CI;< H<98C@@5F5ACIBHGC:GI7<D5MA9BHG5F9IB?BCKBH<9BIA69FC:G<5F9GC:CIFCAACB-HC7?HC69=GGI98=B7CBB97H=CBK=H< GI7<D5MA9BHGA5M:@I7HI5H965G98CBH<9DF=79C:CIFCAACB-HC7?
BMG5@9GCFD9F79=J98G5@9G=BH<9DI6@=7A5F?9HC: G<5F9GC:CIFCAACB-HC7?=GGI56@9IDCBGI7<F989ADH=CBD5MA9BHG7CI@858J9FG9@M5::97HDF9J5=@=B;A5F?9HDF=79GC:G<5F9G C:CIFCAACB-HC7?
.<99L=GH9B79C:CIF*F9:9FF98-HC7?A5M9B7CIF5;9G<CFHG9@@=B;6MA5F?9HD5FH=7=D5BHG6975IG9H<9 DCGG=6=@=HMH<5HF989ADH=CBD5MA9BHGK=@@69A589=BG<5F9GC:CIFCAACB-HC7?7CI@889DF9GGH<9A5F?9HDF=79C:G<5F9GC: CIFCAACB-HC7?
IFH<9F5BMGI7<=GGI5B797CI@8F9GI@H=B8=@IH=CBC:H<99EI=HMC:CIFGHC7?<C@89FG

)IF7<5FH9F5@GC5IH<CF=N9GCIFC5F8C:=F97HCFGK=H<CIHGHC7?<C@89F5DDFCJ5@HC89G=;B5H95B8=GGI9CB9CFACF9 7@5GG9GCFG9F=9GC:DF9:9FF98GHC7?=B588=H=CBHCCIF*F9:9FF98-HC7?5B89EI=HMCF896HG97IF=H=9G7CBJ9FH=6@9=BHCDF9:9FF98 GHC7?5B8HCG9HH<9JCH=B;DCK9FG7CBJ9FG=CBCFCH<9FF=;<HGDF9:9F9B79GF9GHF=7H=CBG@=A=H5H=CBG5GHC8=J=89B8GCFCH<9F 8=GHF=6IH=CBG5B8EI5@=:=75H=CBGCFH9FAGCF7CB8=H=CBGC:F989ADH=CBC:957<7@5GGCFG9F=9GC:G<5F9GGC=GGI98

:5BM588=H=CB5@ DF9:9FF98GHC7?=GDI6@=7@MC::9F98H<9H9FAG5B87CB8=H=CBGC:GI7<DF9:9FF98GHC7?CFCH<9F9EI=HMCF896HG97IF=H=9G 7CBJ9FH=6@9=BHCDF9:9FF98GHC7?K=@@69G9H:CFH<=B5F9;=GHF5H=CBGH5H9A9BHF9;=GH9F=B;H<9=GGI5B79C:GI7<DF9:9FF98GHC7?CF 9EI=HMCF896HG97IF=H=9G7CBJ9FH=6@9=BHCDF9:9FF98GHC7?

975IG9CIFC5F8C:=F97HCFG<5GH<9DCK9FHC9GH56@=G<H<9 DF9:9F9B79G5B8F=;<HGC:957<7@5GGCFG9F=9GC:DF9:9FF98GHC7?=HA5M5::CF8H<9<C@89FGC:5BM7@5GGCFG9F=9GC:DF9:9FF98 GHC7?DF9:9F9B79GDCK9FG5B8F=;<HGG9B=CFHCH<9F=;<HGC:<C@89FGC:CIF*F9:9FF98-HC7?CFCAACB-HC7?

:K99J9F7F95H9 5B8=GGI9588=H=CB5@DF9:9FF98GHC7?CF9EI=HMCF896HG97IF=H=9G7CBJ9FH=6@9=BHCDF9:9FF98GHC7?K=H<58=GHF=6IH=CBDF9:9F9B79 CJ9FCIF*F9:9FF98-HC7?CFCAACB-HC7?D5MA9BHC:5BM8=GHF=6IH=CBDF9:9F9B79GC:GI7<B9KCIHGH5B8=B;DF9:9FF98GHC7? KCI@8F98I79H<95ACIBHC::IB8G5J5=@56@9:CFH<9D5MA9BHC:8=GHF=6IH=CBGCBCIF*F9:9FF98-HC7?5B8CAACB-HC7?5G 5DD@=756@9

IFH<9F<C@89FGC:DF9:9FF98GHC7?5F9BCFA5@@M9BH=H@98HCF979=J95DF9:9F9B79D5MA9BH=:K9@=EI=85H98=GGC@J9CF K=B8ID69:CF95BMD5MA9BH=GA589HCH<9<C@89FGC:CIFCAACB-HC7?@=?9@MF98I7=B;H<95ACIBHH<9<C@89FGC:CIF CAACB-HC7?KCI@8CH<9FK=G9F979=J9IDCBGI7<5BC77IFF9B79

B588=H=CBIB89F79FH5=B7=F7IAGH5B79GH<9=GGI5B79C: 588=H=CB5@DF9:9FF98GHC7?A5M89@5MDF9J9BHF9B89FACF98=::=7I@HCFH9B8HC8=G7CIF5;95A9F;9FH9B89FC::9FCFDFCLM 7CBH9GHH<95GGIADH=CBC:7CBHFC@6M5<C@89FC:5@5F;96@C7?C:CIFG97IF=H=9GCFH<9F9ACJ5@C:=B7IA69BHA5B5;9A9BH

(CGHC7?<C@89FG<5J9F=;<HGHC6IM588=H=CB5@G<5F9GC:GHC7?CFCH<9FG97IF=H=9G=:K9=GGI9B9KG<5F9GC:GHC7?CF CH<9FG97IF=H=9G
19A5M=GGI9CAACB-HC7?7CBJ9FH=6@9896HCFDF9:9FF98GHC7?DIFGI5BHHCGI6G9EI9BHDI6@=7C::9F=B;GCF DF=J5H9D@579A9BHG

BJ9GHCFG=BCIFCAACB-HC7?K<C8CBCHD5FH=7=D5H9=B5BM:IHIF9GHC7?=GGI5B79GK=@@9LD9F=9B79 8=@IH=CB=BH<9D9F79BH5;9C:H<9=GGI985B8CIHGH5B8=B;GHC7?H<9MCKB

B588=H=CB89D9B8=B;CBH<9H9FAG5B8DF=7=B;C:5BM :IHIF9C::9F=B;G5B8H<9J5@I9C:CIF5GG9HGGI7<=BJ9GHCFGA5M9LD9F=9B798=@IH=CB=BH<96CC?J5@I95B8:5=FA5F?9HJ5@I9C: 5B8H<95ACIBHC:8=GHF=6IH=CBGD5=8CBH<9=FG<5F9GC:CAACB-HC7?=:5BM

The listing of our Common Stock and Series L Preferred Stock on more than one stock exchange may result in price variations that could adversely affect liquidity of the market for our Common Stock and or Series L Preferred Stock.

Our Common Stock and Series L Preferred Stock are listed on Nasdaq and the TASE. The dual-listing of our Common Stock and Series L Preferred Stock may result in price variations of our securities between the two exchanges due to a number of factors. First, trading in our securities on these markets takes place in different currencies (USD on Nasdaq and ILS on the TASE). In addition, the exchanges are open for trade at different times of the day and on different days. For example, Nasdaq opens generally during U.S. business hours, Monday through Friday, while the TASE opens generally during Israeli business hours, Sunday through Thursday. The two exchanges also observe different public holidays. Differences in the trading schedules, as well as volatility in the exchange rate of the two currences, among other factors, may result in different trading prices for our Common Stock and Series L Preferred Stock on the two exchanges. Any decrease in the trading price of our Common Stock and Series L Preferred Stock in one market could cause a decrease in the trading price of such security on the other market.

The dual-listing may adversely affect liquidity and trading prices for our Common Stock and Series L Preferred Stock on one or both of the exchanges as a result of circumstances that may be outside of our control. For example, transfers by holders of our securities from trading on one exchange to the other could result in increases in liquidity and or trading prices on either or both of the exchanges. In addition, holders could seek to sell or buy our Series L Preferred Stock or Common Stock to take advantage of any price differences between the two markets through a practice referred to as arbitrage. Any arbitrage activity could create unexpected volatility in both the prices of our Series L Preferred Stock and Common Stock available for trading on either exchange.

The existing mechanism for the dual-listing of securities on Nasdaq and the TASE may be eliminated or otherwise altered such that we may be subject to additional regulatory burden and additional costs.

The existing Israeli regulatory regime provides a mechanism for the dual-listing of securities traded on Nasdaq and the TASE that does not impose any significant regulatory burden or significant costs on us. If this dual-isting regime is eliminated or otherwise altered such that we are unable or unwilling to comply with the regulatory requirements, we may incur additional costs and we may consider delisting of our Series L Preferred Stock and or Common Stock from the TASE.

Our NAV is an estimate of the fair value of our properties and real estate-related assets and may not necessarily reflect realizable value.

The determination of estimated NAV involves a number of subjective assumptions, estimates and judgments that may not be accurate or complete. Neither the Financial Industry nor the SEC provides rules on the methodology we must use to determine our estimated NA V per share. We believe there is no established practice anong public REITs for calculating estimated NAV. Different firms using different property-specific, general real estate, capital markets, economic and other assumptions, estimates and judgments could derive an estimated NAV that is significantly different from our estimated NAV.

Our estimated NAV, as determined by us from time, is calculated by relying in part on appraisals of our real estate assets and the assets of our lending segment. However, valuations of these assets do not necessarily represent the price at which a willing buyer would purchase such assets; there can be no assurance that we would realize the values underlying our estimated NAVs if we were to sell our assets and distribute the net proceeds to our stockholders. The values of our assets and liabilities, and therefore our NAV, are likely to fluctuate over time based on changes in value, investment activities, capital activities, indebtedness levels, and other various activities.

General Risk Factors

We may be unable to pay or maintain cash distributions or increase distributions to stockholders over time.

Several factors may affect the availability and timing of cash distributions to our stockholders. Distributions are based primarily on anticipated cash flow from operations over time. The amount of cash available for distributions is affected by many factors, including the performance of our existing assets, including the selection of tenants and the amount of rental income, our operating expense levels, opportunities for acquisition identified by our Operator, the availability of financing arrangements as well as many other variables. We may not always be in a position to pay distributions to our stockholders and the amount of any distributions we do make may not increase over time. In addition, our actual results may differ significantly from the assumptions used by our Board of Directors in establishing our distribution policy. There also is a risk that we may not have sufficient cash flow from operations to fund distributions required to qualify as a REIT or maintain our REIT status.

We have paid, and may in the future pay, some or all of our distributions to stockholders from sources other than cash flow from operations, including borrowings, proceeds from asset sales or the sale of our securities, which may reduce the amount of capital we ultimately deploy in our real estate operations and may negatively impact the value of our Common Stock.

To the extent that cash flow from operations has been or is insufficient to fully cover our distributions to our stockholders, we have paid, and may in the future pay, some or all of our distributions from sources other than cash flow from operations. Such sources may include borrowings, proceeds from asset sales of our securities. We have no limits on the amounts we may use to pay distributions from sources other than cash flow from operations. The payment of distributions from sources other than cash provided by operating activities may reduce the amount of proceeds available for acquisitions and operations or cause us to incur additional interest expense as a result of borrowed funds. This may negatively impact the market price of our Common Stock.

Distributions at any point in time may not reflect the current performance of our properties or our current operating cash flow.

We may make distributions from any source, including the sources described in the risk factor above. Because the amount we pay in distributions may exceed our earnings and our cash flow from operations, distributions may not reflect the current performance of our properties or our current operating cash flow.

Changes in accounting standards may adversely impact our financial condition and or results of operations.

We are subject to the rules and regulations of the U.S. Financial Accounting Standards Board (the "FASB") related to generally accepted accounting principles in the United States ("GAAP"). Various changes to GAAP are constantly being considered, some of which could materially impact our reported financial condition and or results of operations. Also, to the extent publicly traded companies in the United States would be required in the future to prepare financial statements in accordance with International Financial Reporting Standards instead of the change in accounting standards could materially affect our financial condition or results of operations.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

As of December 31, 2020, our real estate portfolio consisted of 12 assets, all of which were fee-simple properties. As of December 31, 2020, our nine office properties, totaling approximately 1.3 million rentable square feet, were 79.3% occupied, our one development site being used as a parking lot and our one hotel with an ancillary parking garage, which has a total of 503 rooms, had RevPAR of \$46.60 for the year ended December 31, 2020.

.56@9C:CBH9BHG

\$55824%>AC5>;8>4C08;1H%A>?4ACH"0A:4C0=3(D1<0A:4C0B>5424<14A

!40B43 !>20C8>= 44C \$22D?843 8=C7>DB0=3B #>AC74A=0;85>A=80 \$0:;0=3 &5?9'9FF=HH %5=G9F@5N5 %5=G9F@5N5*5F?=B;&CH ( ( ( ( .CH5@&5?9'9FF=HH )>C0;\$0:;0=3 (0=A0=28B2> -CIH"CK5F8-HF99H\ \ \ \ \ \ \ \ \ )>C0;(0=A0=28B2> )>C0;#>AC74A=0;85>A=80 (>DC74A=0;85>A=80 !>B=64;4B	==D0;8I43 '4=C%4A \$22D?843 (@D0A4>>C
	(
19GH&CGB;9@9G
1=@G<=F9CI@9J5F8
1=@G<=F9CI@9J5F8
&=B86@589'98=59BH9F
.CH5@19GH&CGB;9@9G
'=8?1=@G<=F9
1=@G<=F9CI@9J5F8
9J9F@M"=@@G
1=@G<=F9CI@9J5F8
)>C0;!>B=64;4B
)>C0;(>DC74A=0;85>A=80
(>DC7F4BC
DBC8=)-
-CIH<
-CB;F9GGJ9BI9
5GH
H<-HF99H
)>C0;DBC8=)-
)>C0;(>DC7F4BC
)>C0;\$55824

5G98CB@95G9GG=;B985GC:979A69F

&=B86@589'98=59BH9F7CBG=GHGC:H<F996I=@8=B;G

^%5=G9F*@5N5*5F?=B;&CH=G5GEI5F9:CCHD5F79@C:@5B87IFF9BH@M69=B;IG985G5GIF:579D5F?=B;@CH
195F9 9BH=H@98HC89J9@CD56I=@8=B;K<=7<K95F9=BH<9DFC79GGC:89G=;B=B;<5J=B;69HK99B5B8F9BH56@9 GEI5F9:99H

.56@9C:CBH9BHG

-CB;F9GGJ9BI97CBG=GHGC:HK9@J96I=@8=B;G
IF=B;H<9M95F9B898979A69FK9:I@@M@95G98H<9 5DDFCL=A5H9@MGEI5F9:CCHC::=796I=@8=B;H<5HK5G7CAD@9H98=BCB5:CFA9FGIF:579D5F?=B;@CH5H- CB;F9GGJ9BI9

>C4;%>AC5>;8>(D<<0AH0B>5424<14A

E08;01;4 \$22D?843 %A>?4ACH "0A:4C '>>'>>< -<9F5HCB!F5B8"CH9@ -57F5A9BHC )>C0;>C4;?%A>?4ACH 6'40%+#4;412'46;9+6+016'.146(1.+1 '4=C01;4 ==D0;8I43 (@D0A4 '4=C%0A:8=6 44C \$22D?843 !40B43 0=3'4C08; '4C08; %A>?4ACH "0A:4C '4C08; '4C08; 8=C7>DB0=3B -<9F5HCB!F5B8"CH9@*5F?=B;!5F5;9 ,9H5=@ -57F5A9BHC )>C0;=28;;0AH>C4;?%A>?4ACH				'4E4=D4%4A

,9DF9G9BHGHF5=@=B;?ACBH<C77ID5B7M5GC:979A69F75@7I@5H985GH<9BIA69FC:C77ID=98FCCAG 8=J=8986MH<9BIA69FC:5J5=@56@9FCCAG

.<9-<9F5HCB!F5B8"CH9@=GD5FHC:H<9-<9F5HCB:F5B7<=G95B8=GA5B5;986M-<9F5HCB)D9F5H=B;CFDCF5H=CB5 GI6G=8=5FMC:'5FF=CHH#BH9FB5H=CB5@#B7

5G98CB@95G9G7CAA9B7985GC:979A69F

IF=B;H<9M95F9B898979A69FK969;5BF9BCJ5H=CBGC:H<9;I9GHFCCAG:CC85B869J9F5;95A9B=H=9G DI6@=75F95GA99H=B;FCCAG5B8CH<9F5A9B=H=9G5HH<9-<9F5HCB!F5B8"CH9@*5F?=B;!5F5;9,9H5=@
"CK9J9FH<9 J5GHA5>CF=HMC:GI7<F9BCJ5H=CBG<5J9699BH9ADCF5F=@MGIGD9B898G=B79'5F7<8I9HC)0#

		Rating						% of
		(S&P /			Annualized	% of	Rentable	Rentable
		Moody's /	Lease		Rent	Annualized	Square	Square
Tenant	Property	Fitch)	Expiration		(in thousands)	Rent	Reet	Reet
Kaiser Foundation Health Plan, Inc.	1 Kaiser Plaza	AA- / - AA-	2025 - 2027 (1)	S	16,004	30.0 %	366,777	27.8 %
MUFG Union Bank, N.A.	9460 Wilshire Boulevard	A / Aa3 / A	2029		3,617	6.8 0/0	27,569	% 2.1
F45 Training Holdings, Inc.	3601 S Congres Avenue	- / - / -	2029		2,279	0/0 4.3	44,171	% 3.3
3 Arts Entertainment, Inc.	9460 Wilshire Boulevard	- / - / -	2026		2,183	0/0 4.1	27,112	% 2.1
Westwood One, Inc.	Lindblade Media Center	= / = / -	2025		1,870	0/0 3.5	32,428	% 2.5
Total for Top Five Tenants					25,953	48.7 %	498,057	37.8 %
All Other Tenants					27,383	0/0 513	548,912	% 41.5
Vacant						0/0	274,176	20 7 %
Total Office Portfolio				S	53.336	100.0 %	1,321,145	100.0 %

Office Portfolio-Top 5 Tenants by Annualized Rental Revenue as of December 31, 2020

Crodit

(1) more than 100,000 rentable square feet may be terminated with respect to the rentable square feet expiring in 2027), effective as of any date specified by the tenant in a written notice given to us at least 12 months prior to the termination, in exchange for a termination penalty. From and after February 28, 2023 with respect to the rentable square feet expiring in 2025, and February 28, 2025 with respect to rentable square feet expiring in 2027, the tenant has the right to terminate all or any portions of its lease with us, effective as of any date specified by the tenant in a written notice given to us at least 15 months prior to the termination, in each case in exchange for a termination penalty. The amount of such termination penalties is dependent on a variety of factors, including but not limited to the date of the termination notice, the amount of the square feet to be terminated and the location within the building of the space to be terminated.

Office Portfolio-Diversification by Industry as of December 31, 2020

	Annualized	% of	Rentable
	Rent	Annualized	Square	% of Rentable
Industry	(in thousands)	Rent	Feet	Square Feet
Health Care and Social Assistance	ಕಾ 21,631	40.6 %	472,918	35.8 %
Professional, Scientific, and Technical Services	10,046	% 18.8	192,646	14.6 %
Finance and Insurance	5,423	10.2 %	52,838	% 4.0
Arts, Entertainment, and Recreation	5,123	9.6 %	83,781	6.3 0/0
Real Estate and Rental and Leasing	4,332	8.1 0/0	95,531	7.2 %
Public Administration	1,149	2.2 %	26,378	2.0 %
Manufacturing	1,145	2.1 0/0	32,771	25 %
Information	966	1.8 0/0	14,349	% 1.1
Retail Trade	786	1.5 %	21,109	% 1.6
Administrative and Support and Waste Management and Remediation Services	580	1.1 %	10,260	% 0.8
Other	2,155	4.0 0%	44,388	% 3.3
Vacant		0/0	274,176	% 20.8
Total Office	S 53,336	100.0 %	1,321,145	100.0 %

.56@9C:CBH9BHG

	(@D0A444C	>5(@D0A4	==D0;8I43	>5==D0;8I43	==D0;8I43'4=C %4A\$22D?843
.40A>5!40B4 G?8A0C8>=	>5G?8A8=6 !40B4B	44C G?8A8=6	'4=C 8=C7>DB0=3B	'4=C G?8A8=6	(@D0A4>>C
)>C0;\$22D?843
0575BH
)>C0;\$55824

\$55824%>AC5>;8>K!40B4G?8A0C8>=0B >5424<14A

B7@I89GGEI5F9:99HC:ACBH<?HC?ACBH<@95G9G5GC:979A69F

%A>?4ACH=341C43=4BB0B>5424<14A

	\$DCBC0=38=6 %A8=28?0;	0;0=24D4 C"0CDA8CH
	0;0=24		=C4A4BC	"0CDA8CH	0C4		%A4?0H<4=C
%A>?4ACH	8=C7>DB0=3B		'0C4	0C4		8=C7>DB0=3B	4540B0=24
%5=G9F*@5N5
)>C0; ,4867C43E4A064

&C5B=G;9B9F5@@MBCHDF9D5M56@9DF=CFHCDF=@

C4< !460;%A>24438=6B

195F9BCH7IFF9BH@M=BJC@J98=B5BMA5H9F=5@D9B8=B;CFH<F95H9B98@9;5@DFC7998=B;GBCFHCCIF?BCK@98;95F95BM A5H9F=5@@9;5@DFC7998=B;G7IFF9BH@MH<F95H9B985;5=BGHIGCH<9FH<5BFCIH=B9@=H=;5H=CB5F=G=B;=BH<9CF8=B5FM7CIFG9C: 6IG=B9GG

BH<9BCFA5@7CIFG9C:6IG=B9GGK95F9D9F=C8=75@@MD5FHMHC79FH5=B@9;5@57H=CBG5B8DFC7998=B;G=BJC@J=B;A5HH9FG H<5H5F9;9B9F5@@M=B7=89BH5@HCCIF6IG=B9GG

1<=@9H<9CIH7CA9C:H<9G9@9;5@57H=CBG5B8DFC7998=B;G75BBCH69DF98=7H98K=H< 79FH5=BHM=BA5B5;9A9BHVGCD=B=CBH<9F9GC@IH=CBC:H<9G9@9;5@DFC7998=B;G5B857H=CBGK=@@BCH<5J95A5H9F=5@58J9FG99::97H CBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHC A5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

C4< "8=4(054CH8B2;>BDA4B

(CH5DD@=756@9

%')

C4< "0A:4C>A'468BCA0=CNB><<>=@D8CH'4;0C43(C>2:7>;34A"0CC4AB0=3BBD4A%DA270B4B>5@D8CH (42DA8C84B

"0A:4C?;0244B86=0C8>=(0;4B%A824=5>A<0C8>=0=3>;34AB

-<5F9GC:CIFCAACB-HC7?HF589CB(5G85EIB89FH<9H=7?9FGMA6C@T'.U5B8CBH<9.-IB89FH<9H=7?9F GMA6C@T'.?&
U

)B'5F7<H<9F9K9F95DDFCL=A5H9@M<C@89FGC:F97CF8C:CIFCAACB-HC7?9L7@I8=B;GHC7?<C@89FG K<CG9G<5F9GK9F9<9@86M6FC?9F5;9:=FAG89DCG=HCF=9G5B8CH<9F=BGH=HIH=CB5@:=FAG=BTGHF99HB5A9U:CFH<9=F7IGHCA9FG
.<9 7@CG=B;DF=79C:CIFCAACB-HC7?CB'5F7<K5G
5GF9DCFH98CB(5G85E

DDFCL=A5H9@M
C:G<5F9GC:CIFCAACB-HC7?5GC:'5F7<K9F9<9@86MGHC7?<C@89FGH<5H5F9BCH 5::=@=5H9GC:#'CAA9F7=5@

"C@89FGC:CIFCAACB-HC7?5F99BH=H@98HCF979=J98=J=89B8G=:5G5B8K<9B5IH<CF=N986MH<9C5F8C:=F97HCFG 5B8897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G

B89H9FA=B=B;CIF8=J=89B8DC@=7MH<9C5F8C:=F97HCFG7CBG=89FGA5BM :57HCFG=B7@I8=B;H<95ACIBHC:75G<F9GCIF79G5J5=@56@9:CF8=J=89B88=GHF=6IH=CBG75D=H5@GD9B8=B;D@5BG75G<:@CKCIF :=B5B7=5@DCG=H=CB5DD@=756@9F9EI=F9A9BHGC:H<9'!&5BM5DD@=756@97CBHF57HI5@F9GHF=7H=CBG5B8:IHIF9;FCKH<=B(05B8 75G<:@CKD9FG<5F9DFCGD97HG

CBG9EI9BH@MH<98=J=89B8F5H9CB5EI5FH9F@M65G=G8C9GBCHB979GG5F=@M7CFF9@5H98=F97H@MHC5BM =B8=J=8I5@:57HCF
.<9F975B69BC5GGIF5B79H<5HH<9:IHIF98=J=89B8G897@5F986MCIFC5F8C:=F97HCFGK=@@BCH8=::9F A5H9F=5@@M:FCA<=GHCF=75@8=J=89B8@9J9@G
,=G?G=B<9F9BH=BCIF56=@=HMHCD5M8=J=89B8G5F9:IFH<9F89G7F=698=BT#H9AS ,=G? 57HCFGUC:H<=GBBI5@,9DCFHCB CFA?%

(42DA8C84BDC7>A8I435>ABBD0=24*=34A@D8CH><?4=B0C8>=%;0=B

.<9:C@@CK=B;H56@9DFCJ=89G=B:CFA5H=CB5GC:979A69FK=H<F9GD97HHCG<5F9GC:CIFCAACB-HC7?9=H<9F IB89FCDH=CBGCF=BF9GD97HC:F9GHF=7H98GHC7?5K5F8GH<5HA5M69=GGI98IB89F9L=GH=B;9EI=HM7CAD9BG5H=CBD@5BG5@@C:K<=7< <5J9699B5DDFCJ986MCIFGHC7?<C@89FG

%;0=0C46>AH	#D<14A>5B70A4B>5 ><<>=(C>2:C>14 8BBD43D?>=4G4A28B4>5 >DCBC0=38=6>?C8>=B	,4867C430E4A064 4G4A28B4?A824>5 >DCBC0=38=6>?C8>=B	#D<14A>5B70A4B>5><<>=(C>2: A4<08=8=60E08;01;45>A5DCDA48BBD0=24B D=34A4@D8CH2><?4=B0C8>=?;0=B0;;8= A4BCA82C43B70A4B>5><<>=(C>2:
EI=HM=B79BH=J9D@5B	S	(

%4A5>A<0=24A0?7

.<9=B:CFA5H=CB69@CK=GBCH899A98HC69TGC@=7=H=B;A5H9F=5@UCFHC69T:=@98UK=H<H<9-CFGI6>97HHC ,9;I@5H=CBCFIB89FH<9-97IF=H=9GL7<5B;97HC:TL7<5B;97HUCFHCH<9@=56=@=H=9GC:-97H=CBC:H<9 L7<5B;97H5B8K=@@BCH69899A98HC69=B7CFDCF5H986MF9:9F9B79=BHC5BM:=@=B;IB89FH<9-97IF=H=9G7HCFH<9L7<5B;9 7H9L79DHHCH<99LH9BHK9GD97=:=75@@M=B7CFDCF5H9=H6MF9:9F9B79=BHCGI7<5:=@=B;

.<9@=B9;F5D<69@CK7CAD5F9GH<9D9F79BH5;97<5B;9=BH<97IAI@5H=J9HCH5@GHC7?<C@89FF9HIFBCBCIFCAACB -HC7?K=H<H<97IAI@5H=J9HCH5@F9HIFBC:H<9-*5B8H<9 .-(,#.EI=HM,#.#B89L
.<9 .-(,#.EI=HM ,#.#B89L=G5:F99?:@C5H58>IGH98A5F?9H75D=H5@=N5H=CB?K9=;<H98=B89LC:/
EI=HM,#.G
.<9#B89L=B7@I89G5@@H5L? EI5@=:=98,#.GK=H<ACF9H<5BD9F79BHC:HCH5@5GG9HG=BEI5@=:M=B;F95@9GH5H95GG9HGCH<9FH<5BACFH;5;9GG97IF986MF95@ DFCD9FHM
@@F9HIFBG5GGIA95B=BJ9GHA9BHC:CB979A69F5B8H<9F9=BJ9GHA9BHC:8=J=89B8G
.<9GHC7?DF=79 D9F:CFA5B79G<CKBCBH<9;F5D<=GBCHB979GG5F=@M=B8=75H=J9C::IHIF9DF=79D9F:CFA5B79

Cumulative return on \$100 invested on December 31, 2015 as of December 31,

Index		2015		2016		2017		2018		2019		2020
CIM Commercial Trust Corporation S
S&P 500				\$ 100.00 \$ 111.96 \$ 136.40 \$ 136.40 \$ 171.49 \$ 203.04
FTSE NAREIT Equity REIT				\$ 100.00 \$ 108.87 \$ 118.31 \$ 113.50 \$ 146.01 \$ 138.60

Source: SNL Financial LC

Recent Sales of Unregistered Securities and Use of Proceeds

On January 21, 2021, we issued to the Operator an aggregate of 96,740 shares of our Series A Preferred Stock as payment, in lieu of cash, for \$2,418,500 of asset management fees owed to the Investment Management Agreement in respect of the fourth fiscal quarter of the year ended December 31, 2020. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. It is likely that we will seek to pay some or part of the asset management fees for part of the year ending December 31, 2021 in shares of Series A Preferred Stock. Shares of Series A Preferred Stock may be redeemed at our option of the holder for a redemption price payable in cash or shares of Common Stock as described in Note 9 to the consolidated financial statements included in this Annual Report on Form 10-K.

Item 6. Reserved

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

This section includes many forward-looking statements. For cautions about relying on such forward-looking statements, please see "Forward-Looking Statements" at the beginning of this report immediately prior to "Item I—Business" in this Annual Report on Form 10-K.

Overview

The following discussion focuses on recent developments expected to have current and future impacts on the results of our business, trends and uncertainties within our industry and business model that may impact our recent results of operations, and our liquidity and capital resources. The following discussion does not address certain tems regarding the year ended December 31, 2018 or compare our financial operating performance in the years ended December 31, 2019 and 2018. A discussion and analysis of our financial operating performance in the year ended December 31, 2018 and a comparison of such performance to that of the year ended December 31, 2019 can be found in "Item 7. Management's Discussion and Analysis" of our Annual Report on Form 10-K for the year ended December 31, 2019.

.56@9C:CBH9BHG

3CIG<CI@8F958H9:C@@CK=B;8=G7IGG=CB=B7CBIB7H=CBK=H<H<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG5B8BCH9GH<9F9HC =B7@I8989@G9K<9F9=BH<=GBBI5@,9DCFHCB CFA?%

G42DC8E4(D<<0AH

75+0'558'48+'9

'CAA9F7=5@=G5'5FM@5B87CFDCF5H=CB5B8,#.

)IFDF=B7=D5@6IG=B9GG=GHC57EI=F9CKB5B8CD9F5H9@5GG 5B87F95H=J9C::=795GG9HG=BJ=6F5BH5B8=ADFCJ=B;A9HFCDC@=H5B7CAAIB=H=9GH<FCI;<CIHH<9/B=H98-H5H9G=B7@I8=B; =ADFCJ=B;5B889J9@CD=B;GI7<5GG9HG
.<9G97CAAIB=H=9G5F9@C75H98=B5F95GH<5H=B7@I89HF58=H=CB5@8CKBHCKB5F95G5B8 GI6IF65BA5=BGHF99HGK<=7<<5J9<=;<65FF=9FGHC9BHFM<=;<DCDI@5H=CB89BG=HMDCG=H=J9DCDI@5H=CBHF9B8G5B85DFCD9BG=HM :CF;FCKH<
1969@=9J9H<5HH<97F=H=75@A5GGC:F989J9@CDA9BH=BGI7<5F95G7F95H9GDCG=H=J99LH9FB5@=H=9GK<=7<9B<5B79H<9 J5@I9C:F95@9GH5H95GG9HG=BH<95F95
1969@=9J9H<5HH<9G95GG9HGK=@@DFCJ=89;F95H9FF9HIFBGH<5BG=A=@5F5GG9HG=BCH<9F A5F?9HG5G5F9GI@HC:H<9DCDI@5H=CB;FCKH<DI6@=77CAA=HA9BH5B8G=;B=:=75BHDF=J5H9=BJ9GHA9BHH<5H7<5F57H9F=N9H<9G9 5F95G

195F9CD9F5H986M5::=@=5H9GC:#'!FCID

'=G57CAAIB=HM?:C7IG98F95@9GH5H95B8=B:F5GHFI7HIF9CKB9F CD9F5HCF@9B89F5B889J9@CD9F

"958EI5FH9F98=B&CGB;9@9G#'<5GC::=79G57FCGGH<9/B=H98-H5H9G5B8=B.C?MC \$5D5B

!

B'5F7<H<91CF@8"95@H<)F;5B=N5H=CB897@5F98H<9CIH6F95?C:)0#?5D5B89A=7

)0#?<5G GDF958KCF@8K=8975IG=B;G=;B=:=75BH8=GFIDH=CBGHCH<9/
5B8KCF@897CBCA=9G
)B'5F7<5B8'5F7<5 GH5H9C:9A9F;9B7MK5G897@5F98:CFH<9GH5H9C:5@=:CFB=55B8:CFH<9/B=H98-H5H9GF9GD97H=J9@M

BF9GDCBG9HCH<9=GGI5B79C: /

:989F5@;I=89@=B9GHC7CBH5=BH<9GDF958C:)0#?/
GH5H95B8@C75@>IF=G8=7H=CBG=B7@I8=B;H<CG9=BK<=7<K9 CD9F5H9=AD@9A9BH98J5F=CIG7CBH5=BA9BH5B8CFA=H=;5H=CBA95GIF9G=B7@I8=B;G<9@H9F?=B?D@579CF89FG5B8H<9H9ADCF5FM 7@CGIF9C:BCB?9GG9BH=5@6IG=B9GG9G
)0#?<5GHF=;;9F985D9F=C8C:G=;B=:=75BH;@C65@97CBCA=7G@CK8CKB5B8H<9=AD57H C:)0#?CBH<9/
97CBCAMK=@@@=?9@M7CBH=BI9H<FCI;<

.<9=B:CFA5H=CBDFCJ=898=BH<9HKCH56@9G69@CKDFCJ=89G=BG=;<H=BHCH<99::97HGC:)0#?CBCIFF9BH 7C@@97H=CBG:CFH<9G97CB8H<=F85B8:CIFH<EI5FH9FGC:H<9M95F9B898979A69F:CFCIFC::=795B8F9H5=@H9B5BHG5B8 D5F?=B;H9B5BHG
19IB89FH5?9BCC6@=;5H=CBHCDFCJ=89F9BH7C@@97H=CB7CB79GG=CBCF5@@CK5B79=B:CFA5H=CB:CF5BM:IHIF9 D9F=C8
.<9=B:CFA5H=CBDF9G9BH9869@CK=GDF9@=A=B5FM5B8IB5I8=H985B8K9IB89FH5?9BCC6@=;5H=CBHCID85H9GI7< =B:CFA5H=CBCH<9FH<5B5GA5M69F9EI=F986M@5K

\$558240=3'4C08;)4=0=CB	&	&	&
,9BHC@@97H98
,9BH65H98	S
,9BH9:9FF98	S
-97IF=HM9DCG=HDD@=98	S	S
,97CF8985G5896H
/B7C@@97H98,9BH
.CH5@

%0A:8=6)4=0=CB	&	&	&
,9BHC@@97H98
,9BH65H98
,97CF8985G5896H
/B7C@@97H98,9BH	S	S	S
.CH5@

.<9F9<5J9699BBCG=;B=:=75BH7<5B;9G=BF9BH7C@@97H=CBGGI6G9EI9BHHC979A69F

.56@9C:CBH9BHG

,9BH7C@@97H98=G75@7I@5H985GH<95;;F9;5H97CBHF57HI5@F9BH7C@@97H98:CF957<ACBH<=BH<95DD@=756@9D9F=C8 DF9G9BH98:FCAH<969;=BB=B;C:H<5HACBH<H<FCI;<'5F7<8=J=8986MH<95;;F9;5H97CBHF57HI5@F9BH7<5F;98 :CFH<95DD@=756@9D9F=C8
,9BH7C@@97H=CBD9F79BH5;9G5F975@7I@5H9865G98CB7CBHF57HI5@F9BHG9L7@I8=B;D9F79BH5;9 F9BHG5B87CBHF57HI5@@MC6@=;5H98F9=A6IFG9A9BHG6MCIF7@=9BHG

88=H=CB5@@MH<9GDF958C:)0#?=BH<9/B=H98-H5H9G5B8H<9F9GI@H=B;F9GHF=7H=CBGCBHF5J9@A99H=B;G5B8GC7=5@ ;5H<9F=B;GH<5H<5J9699B=AD@9A9BH98:FCAH=A9HCH=A9<5J9=AD57H985B85F99LD97H98HC7CBH=BI9HCA5H9F=5@@M=AD57HGC @CB;5GH<9MD9FG=GHH<9CD9F5H=CBGC:CIF<CH9@=B-57F5A9BHC5@=:CFB=5
*F=CFHCH<9GDF958C:)0#?H<9B9HCD9F5H=B; =B7CA9C:CIF<CH9@7CBGH=HIH985DDFCL=A5H9@MC:CIFHCH5@G9;A9BHB9HCD9F5H=B;=B7CA95GA95GIF98IG=B;+ :=;IF9G
.<9:C@@CK=B;H56@9G9HG:CFH<H<9C77ID5B7M,5B8,9J*,:CFCIF<CH9@=B-57F5A9BHC5@=:CFB=5:CFH<9 GD97=:=98D9F=C8G

	&	&	&	&	&	&
)77ID5B7M
,
,9J*,

.<9F9<5J9699BBCG=;B=:=75BH7<5B;9G=BC77ID5B7M,5B8,9J*,:CFH<9:=FGHEI5FH9FC:=B7CAD5F=GCB HCH<9:CIFH<EI5FH9FC:

)IF@9B8=B;8=J=G=CB<5G5@GC<5858J9FG9=AD57HGF9@5H=B;HC)0#
&C5BGCF=;=B5H985B8G9FJ=798IB89FH<9 -5-A5@@IG=B9GG&C5B*FC;F5AH<FCI;<979A69F7CBG=GHDF=A5F=@MC:@C5BGHC6CFFCK9FG=BH<9@=A=H98 G9FJ=79<CGD=H5@=HMG97HCF
-=B79H<9CBG9HC:)0#?=BH<9/B=H98-H5H9GCIF6CFFCK9FG<5J9699B9LD9F=9B7=B;G=;B=:=75BH F98I7H=CBG=B75G<:@CK5GH<9HF5J9@5B8@9=GIF9=B8IGHFM897@=B975IG986M)0#?<5G7CBH=BI98HCG9J9F9@M=AD57H@=A=H98 G9FJ=79<CGD=H5@=HMDFCD9FH=9G
.9GI6GH5BH=5@A5CF=HMC:CIF6CFFCK9FGF979=J98F9@=9:IB89FH<9,-7H8IF=B;H<9M95F 9B898979A69FH<FCI;<GI6G=8M=BH<9:CFAC:G=LACBH<GC:ACBH<@M@C5BD5MA9BHGA589CBH<96CFFCK9FVG69<5@: DIFGI5BHHC-97H=CBC:H<9,-7H
IFH<9F-97H=CBC:H<9,-7HK5G9LH9B8985B869;=BB=B; 96FI5FM H<9,-7HDFCJ=89GIDHC5B588=H=CB5@H<F99ACBH<GC:GI6G=8MC:G7<98I@98DF=B7=D5@5B8=BH9F9GHD5MA9BHGIDHC D9FACBH<D9F@C5B:CFH9GI6GH5BH=5@A5CF=HMC:CIF6CFFCK9FG

G5F9GI@HC:H<9DCH9BH=5@B9;5H=J9=AD57HCBH<975G<:@CKC:CIF6CFFCK9FG8IF=B;H<9G97CB8<5@:C:K9 =B7F95G98CIF@C5B@CGGF9G9FJ9G
9D9B8=B;IDCBH<9@9B;H<C:7CBH=BI5H=CBC:A5F?9H8=GFIDH=CBG:CFH<9@=A=H98G9FJ=79 <CGD=H5@=HM=B8IGHFMK9A5M<5J9588=H=CB5@=B7F95G9G=BCIF@C5B@CGGF9G9FJ9G5B8I@H=A5H9@M5B=B7F95G9=B@C5B@CGG9G5B8 GI7<@CGG9GA5M69A5H9F=5@

.<9G=HI5H=CBGIFFCIB8=B;)0#?F9A5=BG:@I=85B8K9<5J9699B57H=J9@MA5B5;=B;CIFF9GDCBG9=B 7C@@56CF5H=CBK=H<H9B5BHG;CJ9FBA9BHC::=7=5@G5B86IG=B9GGD5FHB9FG5B85GG9GG=B;H<9=AD57HHCCIF:=B5B7=5@DCG=H=CB5B8 CD9F5H=B;F9GI@HG5GK9@@5GH<9588=H=CB5@DCH9BH=5@58J9FG989J9@CDA9BHG=BCIF6IG=B9GG
19<5J9H5?9BGH9DGHC585DHHCH<9 8=::=7I@H6IG=B9GG9BJ=FCBA9BH=BK<=7<K9CD9F5H95B8HCGHF9B;H<9BCIF6IG=B9GGHCDCG=H=CBCIF6IG=B9GGHCH<F=J9DCGH )0#
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

.<99LH9BHHCK<=7<)0#?K=@@7CBH=BI9HC=AD57HCIFCD9F5H=CBG5B8H<CG9C:=HGH9B5BHG5B86IG=B9GGD5FHB9FG K=@@89D9B8CB:IHIF989J9@CDA9BHGK<=7<5F9<=;<@MIB79FH5=B5B875BBCH69DF98=7H98K=H<7CB:=89B79=B7@I8=B;H<9G7CD9 G9J9F=HM5B88IF5H=CBC:H<9)0#?D5B89A=75B857H=CBGH5?9BHC7CBH5=BH<9D5B89A=7CFA=H=;5H9=HG=AD57H5B8H<9 9LH9BHHCK<=7<:989F5@GH5H95B8@C75@;CJ9FBA9BHGDFCJ=89F9@=9:CF5GG=GH5B79HCH<CG95::97H986M)0#?=B7@I8=B; 9LH9B8=B;H<9,-7H
1975BBCHDF98=7HH<9G=;B=:=75B799LH9BHCF8IF5H=CBC:5BM58J9FG9=AD57HC:)0#?CB=HG 6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCF=HG56=@=HMHCG5H=G:M=HG896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=B =HG@9J9@C:8=GHF=6IH=CBGCB=HGCAACB-HC7?CF*F9:9FF98-HC7?
"CK9J9FCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC: CD9F5H=CBG5B8@=EI=8=HM<5J9699B58J9FG9@M5::97H985B8K=@@@=?9@M7CBH=BI9HC6958J9FG9@M5::97H98:CF5H@95GHH<FCI;<H<9 :=FGH<5@:C:

412'46+'5

GC:979A69FCIFF95@9GH5H9DCFH:C@=C7CBG=GH98C:5GG9HG5@@C:K<=7<K9F9:99?G=AD@9DFCD9FH=9G
G C:979A69FCIFB=B9C::=79DFCD9FH=9GHCH5@=B;5DDFCL=A5H9@M
A=@@=CBF9BH56@9GEI5F9:99HK9F9
C77ID=98 CIFCB989J9@CDA9BHG=H9K5G69=B;IG985G5D5F?=B;@CH5B8CIFCB9<CH9@K=H<5B5B7=@@5FMD5F?=B;;5F5;9K<=7<<5G5HCH5@ C:FCCAG<58,9J*,C:
:CFH<9M95F9B898979A69F

'06#.#6'4'0&5

\$55824(C0C8BC82B.<9:C@@CK=B;H56@9G9HG:CFH<C77ID5B7MF5H9G5B85BBI5@=N98F9BHD9FC77ID=98GEI5F9:CCH57FCGG CIFC::=79DCFH:C@=C5GC:H<9GD97=:=98D9F=C8G

	B>5424<14A
)77ID5B7M
BBI5@=N98F9BHD9FC77ID=98GEI5F9:CCH

.<9=B:CFA5H=CBDF9G9BH98=BH<=GH56@9F9DF9G9BHG<=GHCF=75@=B:CFA5H=CB5GC:H<985H9=B8=75H98K=H<CIH;=J=B;9::97H HC5BMDFCD9FHMG5@9GC77IFF=B;H<9F95:H9F

,9DF9G9BHG;FCGGACBH<@M65G9F9BHIB89F@95G9G7CAA9B7985GC:H<9GD97=:=98D9F=C8GAI@H=D@=986MHK9@J9
.<=G 5ACIBHF9:@97HGHCH5@75G<F9BH69:CF9565H9A9BHG
.CH5@565H9A9BHGF9DF9G9BH=B;@95G9=B79BH=J9G=BH<9:CFAC::F99 F9BH:CFH<9M95FG9B898979A69F5B8K9F9
A=@@=CB
A=@@=CB5B8
A=@@=CB F9GD97H=J9@M
1<9F95DD@=756@95BBI5@=N98F9BH<5G699B;FCGG98ID6M588=B;5BBI5@=N989LD9BG9F9=A6IFG9A9BHGHC 65G9F9BH
BBI5@=N98F9BH:CF79FH5=BC::=79DFCD9FH=9G=B7@I89GF9BH5HHF=6IH56@9HCF9H5=@

)J9FH<9B9LH:CIFEI5FH9FGK99LD97HHCG999LD=F=B;75G<F9BHG5GG9H:CFH<=BH<9H56@969@CK

	>AC74)7A44">=C7B=343
	"0A27		D=4		(4?C4<14A		424<14A
G?8A8=60B7'4=CB
LD=F=B;GEI5F9:99H
LD=F=B;F9BHD9FGEI5F9:CCH

'CBH<?HC?ACBH<H9B5BHGC77IDM=B;5HCH5@C:GEI5F9:99H5F9=B7@I898=BH<99LD=F=B;@95G9G=BH<9:=FGHEI5FH9F @=GH98

,9DF9G9BHG;FCGGACBH<@M65G9F9BH5GC:979A69FIB89F@95G9G9LD=F=B;8IF=B;H<9D9F=C8G56CJ9 AI@H=D@=986MHK9@J9
.<=G5ACIBHF9:@97HGHCH5@75G<F9BH69:CF9565H9A9BHG
1<9F95DD@=756@95BBI5@=N98F9BH<5G 699B;FCGG98ID6M588=B;5BBI5@=N989LD9BG9F9=A6IFG9A9BHGHC65G9F9BH

.56@9C:CBH9BHG

IF=B;H<9M95F9B898979A69FK99L97IH98@95G9GK=H<H9FAG@CB;9FH<5BACBH<GHCH5@=B; GEI5F9:99H
.<9H56@969@CKG9HG:CFH<=B:CFA5H=CBCB79FH5=BC:CIF9L97IH98@95G9G8IF=B;H<9M95F9B898979A69F 9L7@I8=B;GD579H<5HK5GJ575BH:CFACF9H<5BCB9M95FACBH<?HC?ACBH<@95G9G@95G9GK=H<5BCF=;=B5@H9FAC:@9GGH<5B ACBH<GF9@5H98D5FHM@95G9G5B8GD579K<9F9H<9DF9J=CIGH9B5BHK5G5F9@5H98D5FHM

				#4F0B7	G?8A8=60B7
	#D<14A>5	'4=C01;4		'4=CB?4A(@D0A4	'4=CB?4A(@D0A4
	!40B4B	(@D0A444C		>>C	>>C
.K9@J9'CBH<GB898979A69F

5G98CBH<9BIA69FC:H9B5BHGH<5HG=;B98@95G9G

5G<F9BHGF9DF9G9BH;FCGGACBH<@M65G9F9BHAI@H=D@=986MHK9@J9
.<=G5ACIBHF9:@97HGHCH5@75G<F9BH69:CF9 565H9A9BHG
1<9F95DD@=756@95BBI5@=N98F9BH<5G699B;FCGG98ID6M588=B;5BBI5@=N989LD9BG9F9=A6IFG9A9BHGHC 65G9F9BH

@I7HI5H=CBG=BGI6A5F?9HG6I=@8=B;G5B8H9FAGC:@95G9G75IG9@5F;9J5F=5H=CBG=BH<9G9BIA69FG5B8A5?9DF98=7H=B; H<97<5B;9G=BF9BH=B5BMGD97=:=7D9F=C88=::=7I@H )IFF9BH5@5B8C77ID5B7MF5H9G5F9=AD57H986M;9B9F5@97CBCA=7 7CB8=H=CBG=B7@I8=B;H<9D579C:F9;=CB5@5B897CBCA=7;FCKH<5B85779GGHC75D=H5@
.<9F9:CF9K975BBCH;=J95BM5GGIF5B79 H<5H@95G9GK=@@69F9B9K98CFH<5H5J5=@56@9GD579K=@@69F9?@95G985HF9BH5@F5H9G9EI5@HCCF56CJ9H<97IFF9BHA5F?9HF5H9G 88=H=CB5@@M897F95G9889A5B85B8CH<9FB9;5H=J9HF9B8GCFIB:CF9G9956@99J9BHGH<5H=AD5=FCIF56=@=HMHCH=A9@MF9B9KCFF9 @95G9GD5797CI@8<5J95A5H9F=5@58J9FG99::97HCBCIF6IG=B9GG:=B5B7=5@7CB8=H=CBF9GI@HGC:CD9F5H=CBG75G<:@CKCFCIF 56=@=HMHCG5H=G:MCIF896HG9FJ=79C6@=;5H=CBGCFHCA5=BH5=BCIF@9J9@C:8=GHF=6IH=CBGCBCIFCAACB-HC7?CF*F9:9FF98-HC7?

>C4;(C0C8BC82B.<9:C@@CK=B;H56@9G9HG:CFH<H<9C77ID5B7M,5B8,9J*,:CFCIF<CH9@=B-57F5A9BHC 5@=:CFB=5:CFH<9GD97=:=98D9F=C8G

	>AC74.40A=343
	424<14A
)77ID5B7M
,
,9J*,

'0&+0) ')/'06

.<FCI;<CIF-5@9B8=B;D@5H:CFAK95F95B5H=CB5@@9B89FH<5HDF=A5F=@MCF=;=B5H9G@C5BGHCGA5@@6IG=B9GG9G 19=89BH=:M@C5BCF=;=B5H=CBCDDCFHIB=H=9GH<FCI;<D9FGCB5@7CBH57HG=BH9FB9HF9:9FF5@G5HH9B85B795HHF589G<CKG5B8A99H=B;G 8=F97HA5=@=B;G58J9FH=G9A9BHG=BHF589DI6@=75H=CBG5B8CH<9FA5F?9H=B;A9H<C8G
195@GC;9B9F5H9@C5BGH<FCI;<F9:9FF5@G :FCAF95@9GH5H95B8@C5B6FC?9FG:F5B7<=G9F9DF9G9BH5H=J9G9L=GH=B;6CFFCK9FG@5KM9FG5B8577CIBH5BHG

'4BD;CB>5\$?4A0C8>=B

'60%1/'

	.40A=343
	424<14A			70=64
		8C@@5FG=BH<CIG5B8G
.CH5@F9J9BI9G
.CH5@9LD9BG9G
!5=BCBG5@9C:F95@9GH5H9	S
(9H@CGG=B7CA9

(9H@CGG=B7F95G98HC
A=@@=CBCF6M
A=@@=CB:CFH<9M95F9B898979A69F7CAD5F98HC A=@@=CB:CFH<9M95F9B898979A69FDF=A5F=@M8I9HCH<9GG9H-5@9G5B8H<958J9FG9=AD57HC:

COVID-19. Refer to "Summary Segment Results" below for a more complete discussion of the factors impacting our performance.

Summary Segment Results

During the years ended December 31, 2020 and 2019, CIM Commercial operated in three segments: office and hotel properties and lending. Set forth and described below are summary segment results for our operating segments.

		Year Ended
	December 31,					Change
	2020			2019	S		0/0
				(dollars in thousands)
Revenues:
Office	ಕ್ಕಿ	55,468	S	86,948	S	(31,480)	(36.2)%
Hotel	ക്ക	13,314	S	38,748	S	(25,434)	(65.6)%
Lending	S	8,322	S	10,964	S	(2,642)	(24.1)%
Expenses:
Office	S	23,975	S	37,159	S	(13,184)	(35.5)%
Hotel	ಕ್ಕಿ	14,123	S	26,424	S	(12,301)	(46.6)%
Lending	S	6,365	S	5,826	S	539	9.3 %
Non-Segment Revenue and Expenses:
Interest and other income	S	104	S	3.329	S	(3,225)	(96.9)%
Asset management and other fees to related parties	S	(9,793)	S	(13,121)	ಲ್ಲಿ	3,328	(25.4)%
Expense reimbursements to related parties-corporate	S	(2,243)	S	(2,800)	S	557	(19.9)%
Interest expense	S	(10,547)	S	(10,361)	es	(186)	1.8 %
General and administrative	ಕ್ಕಿ ಕ	(4,212)	ਦੇ ਦੇ	(4,069)	સ્ત્રિ	(143)	3.5 %
Transaction costs	S		S	(574)	S	574	(100.0)%
Depreciation and amortization	ಕ್ಕಿ	(21,406)	ਦਿੱਤਾ। ਉ	(27,374)	સ્ત્રિ	5,968	(21.8)%
Loss on early extinguishment of debt	S	(281)	S	(29,982)	S	29,701	(99.1)%
Impairment of real estate	ಕ್ಕಿ ಕ		S	(69,000)	S	69,000	(100.0)%
Gain on sale of real estate	ക		S	433,104	S	(433,104)	(100.0)%
Benefit (provision) for income taxes	S	722	S	(882)	S	1.604	(181.9)%

Revenues

Office Revenue: Office revenue includes rental revenue, expense reimbursements and lease trom office properties. Office revenue decreased by 36.2% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The decrease is primarily due to the 2019 Asset Sales, and lower revenues at an office property in Beverly Hills, California due to a decrease in occupancy as compared to the prior year.

Hotel Revenue: Hotel revenue decreased by 65.6% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The decrease is primarily due to decreases in occupancy, ADR, and food, beverage, and other sundry services during the period from March 2020 through December 2020 as compared to the prior year as a result of COVID-19.

Lending Revenue: Lending revenue represents revenue from our lending subsidiaries, including interest income on loans and other loan related fee income. Lending revenue decreased by 24.1% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The decrease is primarily due to a decrease in interest income, primarily due to a decrease in prime rate, as well as a decrease in premium income from the sale of the guaranteed portion of our SBA 7(a) loans due to lower loan origination and sales volume as compared to the prior year.

Interest and Other Income: Interest and other income represents revenue generated outside of our reportable segments. Interest and other income decreased by 96.9% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The decrease was primarily due to interest earned on the 2019 Asset Sales received

during the year ended December 31, 2019 until the payment of the Special Dividend in August 2019, as well as interest earned during the fourth quarter of 2019 on the funds used for the tender offer that resulted in our purchase of 2,693,580 shares of Series L Preferred Stock in 2019 (the "Series L Tender Offer").

Expenses

Office Expenses: Office expenses decreased by 35.5% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The decrease is primarily due to the 2019 Asset Sales.

Hotel Expenses: Hotel expenses decreased by 46.6% for the year ended December 31, 2020 compared to the year ended December 31, 2019, primarily as a result of decreased occupancy at the hotel during the year ended December 31, 2020 as a result of COVID-19.

Lending Expenses: Lending expenses represent expenses from our lending interest expense, general and administrative expenses and expense reimbursements to related parties. Lending expenses increased by 9.3% for the year ended December 31, 2020 compared to the year ended December 31, 2019 primarily due to an increase in costs incurred and expense reimbursements to related parties due to an increase in allocated expenses related to the development of the loan origination platform for the PPP and assistance with origination of SBA 7(a) loans under the PPP, additions to our general reserves (included in general and administrative expenses) as a result of COVID-19, and an increase in costs incurred and expense reimbursements as a result of the allocation of \$230,000 to the lending segment for a portion of the payment made to our former President who retired effective September 16, 2020, partially offset by a decrease as a result of a reduction in the outstanding balances of our SBA 7(a) loan-backed notes and secured borrowings.

Asset Management and Other Fees to Related Parties: Asset management fees and other fees to related parties, which have not been allocated to our operating segments decreased by 25.4% for the year ended December 31, 2020 compared to the year ended December 31, 2019. Asset management fees totaled \$9.5 million for the year ended December 31, 2020 compared to \$12.0 million for the year ended December 31, 2019. Asset management fees are calculated based on a percentage of the daily average adjusted fair value of CIM Urban's assets, which are appraised in the fourth quarter of each year. The lower fees reflect a decrease in the adjusted fair value of CIM Urban's assets in the year ended December 31, 2020 as compared to the year ended December 31, 2019 due the 2019 Asset Sales and lower appraised values of the same store properties, partially offset by incremental capital expenditures incurred in the year ended December 31, 2020.

CIM Commercial paid a Base Service Fee to the Administrator, a related party, which totaled \$282,000 for the quarter ended March 31, 2020 compared to \$1.1 million for the year ended December 31, 2019. On May 11, 2020, the Master Services Agreement was amended to replace the Base Service Fee with the Incentive Fee effective as of April 1, 2020. The Administrator did not earn an Incentive Fee during the year ended December 31, 2020. Based on the expected performance of the Company for 2021, we do not anticipate that any Incentive Fee will be payable in respect of the year ended December 31, 2021

Expense Reimbursements to Related Parties-Corporate: The Administrator received compensation and or rembursement for performing certain services (other than the Base Services) for CIM Commercial and its subsidiaries that are not covered by the Base Service Fee or the Incentive Fee, as the case may be. Expense reimbursements to related partiescorporate decreased by 19.9% for the year ended December 31, 2020 compared to the year ended December 31, 2019, primarily due to reductions in allocated payroll.

Interest Expense: Interest expense, which has not been allocated to our operating segments, increased by 1.8% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The increase is primarily due to a higher average outstanding principal balance on our 2018 Credit Facility during the year ended December 31, 2020 compared to the year ended December 31, 2019, as well as an increase in interest expense on our revolving credit facility resulting from the 2018 Credit Facility Modification, partially offset by a decrease in the LIBOR component of our interest rates and the legal defeasance of mortgage loans with an aggregate outstanding principal balance of \$205.5 million in connection with the sale of three office properties and a parking garage in Oakland, California, the prepayment of a \$46.0 million mortgage loan in connection with the sale of an office property in Washington, D.C., and the assumption of a \$28.2 million mortgage loan by the buyer of an office property in San Francisco, California, all of which were consummated in March 2019, and the legal defeasance of a mortgage loan with an outstanding principal balance of \$39.5 million in connection with the sale of an office property in Oakland, California, which was consummated in May 2019.

General and Administrative Expenses: General and administrative expenses, which have not been allocated to our operating segments, increased by 3.5% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The increase is primarily due to a non-recurring reduction of general and administrative expenses that occurred during the year ended December 31, 2019.

Transaction Costs: Transaction costs were \$0 for the year ended December 31, 2020, a decrease of \$574,000 compared to \$574,000 for the year ended December 31, 2019, which were incurred as a result of the 2019 Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock.

Depreciation and Amortization Expense: Depreciation and amortization expense decreased by 21.8% for the year ended December 31, 2020 compared to the year ended December 31, 2019. The decrease is primarily due to the 2019 Asset Sales.

Loss on Early Extinguishment of Debt: Loss on early extinguishment of debt was \$281,000 for the year ended December 31, 2020 compared to \$30.0 million for the year ended December 31, 2019. The loss on early extinguishment of debt of \$281,000 for the year ended December 31, 2020 was related to the write off of a portion of the deferred financing costs for the 2018 Credit Facility (as defined below) as a result of the reduction in total borrowing capacity in connection with the 2018 Credit Agreement Modification. In March 2019, we legally defeased mortgage loans with an aggregate outstanding principal balance of \$205.5 million in connection with the sale of three office properties and a parking garage in Oakland, California, we prepaid a \$46.0 million mortgage loan in connection with the sale of an office property in Washington, D.C., and a \$28.2 million mortgage loan was assumed by the buyer of an office property in San Francisco, California. In May 2019, one mortgage loan, with an outstanding principal balance of \$39.5 million at such time, was legally defeased in connection with the sale of the related property. The loss on early extinguishment of debt for the year ended December 31, 2019 consists of the costs associated with the aforementioned legal defeasances, repayment, and assumption of mortgage loans, the write-off of unamortized deferred loan costs, and, with regards to the legal defeasances, the difference between the purchase price of the U.S. government securities and the outstanding principal balance of the mortgage loans that were legally defeased.

Impairment of Real Estate: Impairment of real estate was \$0 for the year ended December 31, 2020 and \$69.0 million for the year ended December 31, 2019. In connection of an agreement with an unrelated third-party for the sale of 100% fee-simple interests in two office properties and one development site in Washington, D.C., we determined that the book values of such properties exceeded their values and recognized impairment charges totaling \$69.0 million for the year ended December 31, 2019. Our determination of the fair value of such properties was based on the sales price negotiated with the third-party buyer.

Gain on sale of real estate: Gain on sale of real estate was \$0 for the year ended December 31, 2020 and \$433.1 million for the year ended December 31, 2019. We recognized a gain on sale of \$289.8 million in connection with the sale of three office properties and a parking garage in Oakland, California, \$45.7 million in connection with the sale of an office property in Washington, D.C., and \$42.1 million in connection with the sale of an office property in San Francisco, California, all of which were consummated in March 2019, a gain on sale of teal estate of \$5.2 million in connection with the sale of an office property in Oakland, California, which was consummated in May 2019, and a gain on sale of real estate of \$302,000 in connection with the sale of two office properties and one development site in Washington, D.C., which was consummated in July 2019.

Benefit (Provision) for Income Taxes: Benefit (provision) for income taxes was \$722,000 for the year ended December 31, 2020 and \$(882,000) for the year ended December 31, 2019. The change is primarily is due to a decrease in taxable income at our taxable REIT subsidiaries during the vear ended December 31, 2020 resulting principally from the effects of COVID-19 on our hotel in Sacramento, California.

Cash Flow Analysis

Our cash flows from operating activities are primarily dependent upon the real estate assets owned, occupancy level of our real estate assets, the rental rates achieved through our leases, the collectability of rent and recoveries from our tenants, and loan related activity, many of which were negatively impacted by the effects of COVID-19 during the year ended December 31, 2020. Our cash flows from operating activities are also impacted by fluctuations in operating expenses and other general and administrative costs. Net cash provided by operating activities decreased by \$28.2 million for the year ended December 31, 2020, as compared to the same period in 2019. The decrease was primarily due to the 2019 Asset Sales, which resulted in a \$32.4 million decrease in net income adjusted for the gain on sale of real estate, depreciation and amortization expense, impairment of real estate, and loss on early extinguishment of debt. The change in cash flows from operating activities was also driven by a decrease of \$14.3 million in proceeds from the sale of guaranteed loans, partially offset by an increase of \$12.6 million resulting from a lower level of working capital used compared to the prior period.

Our cash flows from investing activities are primarily related to property acquisitions and sales, expenditures for development or repositioning of properties, capital expenditures and cash flows assocrated at our lending segment. Net cash used in investing activities for the year ended December 31, 2020 was \$38.3 million compared to net cash provided by investing activities of \$917.2 million in the corresponding period in 2019. The decrease was primarily due to

A=@@=CBC:75G<;9B9F5H98:FCAH<9GG9H-5@9G8IF=B;H<9M95F9B898979A69F5B85
A=@@=CB =B7F95G9=B@C5BG:IB898

)IF75G<:@CKG:FCA:=B5B7=B;57H=J=H=9G5F9;9B9F5@@M=AD57H986M6CFFCK=B;G5B875D=H5@57H=J=H=9G
(9H75G< DFCJ=8986M:=B5B7=B;57H=J=H=9G:CFH<9M95F9B898979A69FK5G
A=@@=CB7CAD5F98HCB9H75G<IG98=B :=B5B7=B;57H=J=H=9GC:
6=@@=CB=BH<97CFF9GDCB8=B;D9F=C8=B
.<97<5B;9K5GDF=A5F=@M8I9HCH<9
A=@@=CB D5MA9BHC:GD97=5@75G<8=J=89B8G8IF=B;H<9M95F9B898979A69F
88=H=CB5@@MK9<585BCIH:@CKC: A=@@=CB:CF=BJ9GHA9BHG=BA5F?9H56@9G97IF=H=9G=B7CBB97H=CBK=H<H<9@9;5@89:95G5B79C:79FH5=BACFH;5;9@C5BG5B8<58 =B7F95G98896HF9D5MA9BHGB9HC:896HDFC7998GC:
A=@@=CB=B957<75G98IF=B;H<9M95F9B898979A69F

70&5(41/2'4#6+105

1969@=9J9H<5H:IB8G:FCACD9F5H=CBGT )U=G5K=89@MF97C;B=N985B85DDFCDF=5H9A95GIF9C:H<9D9F:CFA5B79C: 5,#.5B8H<5H=H=G:F9EI9BH@MIG986MG97IF=H=9G5B5@MGHG=BJ9GHCFG5B8CH<9F=BH9F9GH98D5FH=9G=BH<99J5@I5H=CBC:,#.G A5BMC:K<=7<DF9G9BH )K<9BF9DCFH=B;H<9=FF9GI@HG
)F9DF9G9BHGB9H=B7CA9@CGG5HHF=6IH56@9HC7CAACB GHC7?<C@89FG7CADIH98=B577CF85B79K=H<!*K<=7<F9:@97HGH<9898I7H=CBC:F9899A56@9DF9:9FF98GHC7?8=J=89B8G 577IAI@5H989L7@I8=B;;5=BGCF@CGG9G:FCAG5@9GC:F95@9GH5H9=AD5=FA9BHC:F95@9GH5H95B8F95@9GH5H989DF97=5H=CB5B8 5ACFH=N5H=CB
1975@7I@5H9 )=B577CF85B79K=H<H<9GH5B85F8G9GH56@=G<986MH<9(5H=CB5@GGC7=5H=CBC:,95@GH5H9 #BJ9GHA9BH.FIGHGH<9T(,#.U

&=?95BMA9HF=7 )G<CI@8BCH69IG985GH<9CB@MA95GIF9C:CIFD9F:CFA5B796975IG9=H9L7@I89G89DF97=5H=CB5B8 5ACFH=N5H=CB5B875DHIF9GB9=H<9FH<97<5B;9G=BH<9J5@I9C:CIFF95@9GH5H9DFCD9FH=9GH<5HF9GI@H:FCAIG9CFA5F?9H7CB8=H=CBG BCFH<9@9J9@C:75D=H5@9LD9B8=HIF9G5B8@95G=B;7CAA=GG=CBGB979GG5FMHCA5=BH5=BH<9CD9F5H=B;D9F:CFA5B79C:CIF DFCD9FH=9G5@@C:K<=7<<5J9F95@97CBCA=79::97H5B87CI@8A5H9F=5@@M=AD57HCIFCD9F5H=B;F9GI@HG
)H<9F,#.GA5MBCH 75@7I@5H9 )=B577CF85B79K=H<H<9GH5B85F8G9GH56@=G<986MH<9(,#.577CF8=B;@MCIF )A5MBCH697CAD5F56@9HC H<9 )GC:CH<9F,#.G
.<9F9:CF9 )G<CI@8697CBG=89F98CB@M5G5GIDD@9A9BHHCB9H=B7CA9@CGG5G5A95GIF9C:CIF D9F:CFA5B795B8G<CI@8BCH69IG985G5GIDD@9A9BHHCCFGI6GH=HIH9A95GIF9:CF75G<:@CKG:FCACD9F5H=B;57H=J=H=9G7CADIH98 =B577CF85B79K=H<!*
)G<CI@8BCH69IG985G5A95GIF9C:CIF@=EI=8=HMBCF=G=H=B8=75H=J9C::IB8G5J5=@56@9HC:IB8 CIF75G<B998G=B7@I8=B;CIF56=@=HMHCD5M8=J=89B8G

)5HHF=6IH56@9HC7CAACBGHC7?<C@89FGK5G
A=@@=CB:CFH<9M95F9B898979A69F5B=B7F95G9C: A=@@=CB7CAD5F98HC
A=@@=CB:CFH<9M95F9B898979A69F
.<97<5B;9K5GDF=A5F=@M8I9HC5897F95G9C: A=@@=CB=B@CGGCB95F@M9LH=B;I=G<A9BHC:896HDF=A5F=@M5HHF=6IH56@9HCH<9GG9H-5@9G8IF=B;H<9M95F9B898 979A69F5B85
A=@@=CB897F95G9=BF9899A56@9DF9:9FF98GHC7?F989ADH=CBGDF=A5F=@M=B7CBB97H=CBK=H<H<9 -9F=9G&.9B89F)::9FD5FH=5@@MC::G9H6M5897F95G9C:
A=@@=CB=BG9;A9BHB9HCD9F5H=B;=B7CA9:CFH<9M95F9B898 979A69F7CAD5F98HCH<9M95F9B898979A69FDF=A5F=@M5G5F9GI@HC:H<9GG9H-5@9G5B8H<9 58J9FG99::97HGC:)0#

.<9:C@@CK=B;H56@9G9HG:CFH<5<=GHCF=75@F97CB7=@=5H=CBC:B9H@CGG=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FGHC )5HHF=6IH56@9HC<C@89FGC:CIFCAACB-HC7?

		.40A=343424<14A
		=BH<CIG5B8G
(9H@CGG=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FG
9DF97=5H=CB5B85ACFH=N5H=CB
#AD5=FA9BHC:F95@9GH5H9	S	S	S
!5=BCBG5@9C:89DF97=56@95GG9HG	S	S
)5HHF=6IH56@9HC7CAACBGHC7?<C@89FG

IF=B;H<9M95FG9B898979A69F5B8K9F97C;B=N98
A=@@=CB A=@@=CB5B8F9GD97H=J9@MC:@CGGCB95F@M9LH=B;I=G<A9BHC:896H
-I7<@CGG9G5F9=B7@I898 =B5B8<5J9H<99::97HC:F98I7=B;B9H@CGG=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FG5B8 )5HHF=6IH56@9HC 7CAACBGHC7?<C@89FG6975IG9@CGGCB95F@M9LH=B;I=GIGHA9BHDF9G7F=6986M(,#.

IF=B;H<9M95FG9B898979A69F5B8K9F97C;B=N985B8
A=@@=CBF9GD97H=J9@MC: F9899A56@9DF9:9FF98GHC7?F989ADH=CBG5B85B8F9GD97H=J9@MC:F9899A56@9DF9:9FF98GHC7?899A98 8=J=89B8G
.<9
A=@@=CBC:F9899A56@9DF9:9FF98GHC7?F989ADH=CBGF97C;B=N98=BK5GDF=A5F=@M=B

connection with the Series L Tender Offer. Such amount is included in, and has the effect of reducing, net (loss) income attributable to common stockholders and FFO attributable to common stockholders, because redeemable preferred stock redemptions are not an adjustment prescribed by NAREIT.

Liquidity and Capital Resources

General

We currently have substantial cash on hand, and may finance our future activities through one or more of the following methods: (i) offerings of shares of Common Stock, Preferred Stock or other equity and or debt securities of the Company; (i) credit facilities and term loans; (ii) the addition of senior recourse debt using target acquisitions as well as existing assets as collateral; (iv) the sale of existing assets; and or (v) cash flows from operations.

Our long-term liquidity needs will consist primarily of funds necessary for acquisitions of assets, development or repositioning of properties, or re-leasing of space in existing properties, capital expenditures, refinancing of indebtedness, SBA 7(a) loan originations, paying distributions on our Preferred Stock or any other preferred stock we may issue, any future repurchase and or redemption of our Preferred Stock (if we choose, or are required, to pay the redemption price in cash instead of in shares of our Common Stock) and distributions on our Common Stock. Existing development and repositioning activities expected to be completed in the near-term, despite their temporary suspension since March 2020 as a result of COVID-19, include (i) our repositioning of an existing office building at 4750 Wilshire Boulevard in Los Angeles, California, which repositioning is expected to cost approximately \$14.5 million had been paid as of December 31, 2020 and (ii) renovations of the guest rooms, food and beverage amenties, public areas, meeting rooms and other amenties at the Sheraton Grand Hotel in Sacramento, California, which renovations are expected to cost approximately \$26.3 million, of which \$2.2 million had been paid as of December 31, 2020.

We may not have sufficient funds on hand or may not be able to obtain additional financing to cover all of our longterm cash requirements. The nature of our business, and the requirements imposed by REIT rules that we distantial majority of our REIT taxable income on an annual basis in the form of dividends, may cause us to have substantial liquidity needs over the long-term. While we will seek to satisfy such needs through one or more of the methods described in the first paragraph of this section, our ability to take such actions is highly uncertain and cannot be predicted, and could be affected by various risks and uncertainties, including, but not limited to, the effects of COVID-19 and other risks detailed in "Item 1 A-Risk Factors' of this Annual Report on Form 10-K. If we cannot obtain funding for our long-term liquidity needs, our assets may generate lower cash flows or decline in value, or both, which may cause us to sell assets at a time when we would not otherwise do so which could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to mantain our level of distributions on our Common Stock or Preferred Stock

Sources and Uses of Funds

Mortgages

In June 2016, we entered into six mortgage loan agreegate principal amount of \$392.0 million. In 2017 and 2019, in connection with the sales of certain office properties, \$294.9 million in aggregate principal of five of these loans was defeased or assumed by the respective buyers in connection with the sale of the properties that were collateral for such loans.

Revolving Credit Facilities

In October 2018, CIM Commercial entered into a secured revolving credit facility with a bank syndicate that, as amended, allows CIM Commercial to borrow up to \$209.5 million, subject to a borrowing base calculation (the "2018 Credit Facility"). In September 2020, the 2018 Credity was amended (the "2018 Credit Facility Modification") to mitigate the effect that COVID-19 had on CIM Commercial's ability to borrow under the 2018 Credit Facility during the period from September 2, 2020 through June 30, 2021 (the "Deferral Period"). The 2018 Credit Facility bears interest (i) during the Deferral Period, at (A) the base rate plus 1.05% or (B) LIBOR plus 2.05% and (ii) after the Deferral Period, at (A) the base rate plus 0.55% or (B) LIBOR plus 1.55%. As of December 31, 2020 and 2019, the variable interest rate was 2.20% and 3.29%, respectively. The 2018 Credit Facility is also subject to an unused commitment fee of 0.15% or 0.25% depending on the amount of aggregate unused commitments. The 2018 Credity is secured by deeds of trust on certain of our properties. During the Deferral Period, our borrowing capacity is subject to a \$15.0 million reserve, which may be reduced by certain capital expenditures made in respecties securing the 2018 Credit Facility, and the requirement that we maintain a minimum balance of "liquid assets" of \$15.0 million, which are defined as (1) unencumbered cash and (2) up to \$5.0 million unfunded availability under the 2018 Credit Facility. Other than as described in the preceding sentence, the

F98=H 57=@=HM7CBH5=BG7IGHCA5FM7CJ9B5BHG5B8=GBCHGI6>97HHC5BM:=B5B7=5@7CJ9B5BHGH<CI;<H<95ACIBHK9A5M 6CFFCKIB89FH<9F98=H 57=@=HM=G89H9FA=B986M56CFFCK=B;65G975@7I@5H=CB
.<9F98=H 57=@=HMA5HIF9G=B )7HC69F5B8DFCJ=89G:CFCB9CB9?M95F9LH9BG=CBCDH=CBIB89F79FH5=B7CB8=H=CBG
GC:'5F7<979A69F 5B8979A69F
A=@@=CB
A=@@=CB5B8
A=@@=CBF9GD97H=J9@MK5GCIHGH5B8=B;IB89FH<9 F98=H 57=@=HM5B85DDFCL=A5H9@M
A=@@=CB
A=@@=CB5B8
A=@@=CBF9GD97H=J9@MK5G5J5=@56@9:CF:IHIF9 6CFFCK=B;G

B'5MHC:IFH<9F9B<5B79=HG@=EI=8=HMDCG=H=CB5B8A5=BH5=B:=B5B7=5@:@9L=6=@=HM#'CAA9F7=5@9BH9F98=BHC 5BIBG97IF98F9JC@J=B;7F98=H:57=@=HMK=H<565B?H<9TF98=H 57=@=HMUDIFGI5BHHCK<=7<#'CAA9F7=5@75B6CFFCK IDHC5A5L=AIAC:

A=@@=CB
)IHGH5B8=B;58J5B79GIB89FH<9F98=H 57=@=HM695F=BH9F9GH5HH<9F5H9C:

' CAA9F7=5@5@GCD5MG5F9JC@J=B;7F98=H:57=@=HM:99C:

K=H<957<58J5B79IB89FH<9F98=H 57=@=HMK<=7<:99=G GI6>97HHC575DC:=BH<95;;F9;5H9
.<9F98=H 57=@=HM7CBH5=BG79FH5=B7IGHCA5FM7CJ9B5BHG=B7@I8=B;5 A5L=AIA@9J9F5;9F5H=C5B85A=B=AIA:=L987<5F;97CJ9F5;9F5H=C5GK9@@5G79FH5=BCH<9F7CB8=H=CBG
.<9F98=H 57=@=HMA5HIF9G=B'5M
GC:6CH<'5F7<5B8979A69FK5GCIHGH5B8=B;IB89FH<9F98=H 57=@=HM5B8
A=@@=CBK5G5J5=@56@9:CF:IHIF96CFFCK=B;G

B\$IB9K96CFFCK98:IB8G:FCAH<9 989F5@,9G9FJ9H<FCI;<H<9***&

8J5B79GIB89FH<9***& 75FFM5B =BH9F9GHF5H9C:
5F9A589CB58C@@5F?:CF?8C@@5F65G=G65G98CBH<95ACIBHC:@C5BGCF=;=B5H98IB89FH<9*5M7<97? *FCH97H=CB*FC;F5A5B85F9G97IF986M@C5BGA5896MIGIB89FH<9*5M7<97?*FCH97H=CB*FC;F5A
.<9***& 7CBH5=BG 7IGHCA5FM7CJ9B5BHG6IH=GBCHGI6>97HHC5BM:=B5B7=5@7CJ9B5BHG
.<9A5HIF=HM85H9C:***& 6CFFCK=B;G=GH<9G5A95GH<9 A5HIF=HM85H9C:H<9@C5BGD@98;98HCG97IF9H<99LH9BG=CBC:7F98=H;9B9F5@@MHKCM95FG
HA5HIF=HM6CH<DF=B7=D5@5B8577FI98 =BH9F9GH5F98I9
.<9A5HIF=HM85H9C:5***& 6CFFCK=B;K=@@695779@9F5H98=:5ACB;CH<9FH<=B;GK9<5J9699BF9=A6IFG98 6MH<9-:CF5@C5B:CF;=J9B9GGHCH<99LH9BHC:H<9:CF;=J9B9GGK9<5J9F979=J98D5MA9BH:FCAH<9-F9DF9G9BH=B; 9L9F7=G9C:H<9@C5B;I5F5BH99CFK9<5J9F979=J98D5MA9BH:FCAH<9IB89F@M=B;6CFFCK9FHCH<99LH9BHC:H<9D5MA9BH F979=J98
(CB9K9LH9BG=CBGC:7F98=HK=@@69A589IB89FH<9***& 5:H9F\$IB9IB@9GGH<9 989F5@,9G9FJ9C5F85B8 H<9/B=H98-H5H9G9D5FHA9BHC:H<9.F95GIFM897=89HC9LH9B8H<9***&
196CFFCK98ACB9MIB89FH<9***& HC:=B5B795@@ H<9@C5BGK9CF=;=B5H98IB89FH<9*5M7<97?*FCH97H=CB*FC;F5A
GC:'5F7<5B8979A69F
A=@@=CB 5B8
A=@@=CBF9GD97H=J9@MK5GCIHGH5B8=B;IB89FH<9***&

6*'4+0#0%+0)%6+8+6;

)B'5MK97CAD@9H985G97IF=H=N5H=CBC:H<9IB;I5F5BH998DCFH=CBC:79FH5=BC:CIF-5@C5BG F979=J56@9K=H<H<9=GGI5B79C:
A=@@=CBC:IB;I5F5BH998-5@C5B?657?98BCH9G
.<9-5@C5B?657?98BCH9G A5HIF9CB'5F7<K=H<ACBH<@MD5MA9BHG8I95GD5MA9BHGCBH<97C@@5H9F5@=N98@C5BG5F9F979=J98
5G98CBH<9 5BH=7=D5H98F9D5MA9BHGC:CIF7C@@5H9F5@=N98-5@C5BG5H=GGI5B79K99GH=A5H98H<9K9=;<H985J9F5;9@=:9C:H<9- 5@C5B?657?98BCH9GHC695DDFCL=A5H9@MHKCM95FG
.<9-5@C5B?657?98BCH9G695F=BH9F9GH5HH<9@CK9FC:H<9CB9? ACBH<&#),D@IG
CFH<9DF=A9F5H9@9GG

.<9CIHGH5B8=B;65@5B79C:-5@C5B?657?98BCH9GCB'5F7< 979A69F5B8979A69FK5G
A=@@=CB
A=@@=CB5B8
A=@@=CBF9GD97H=J9@M

.<9CAD5BM<5G>IB=CFGI6CF8=B5H98BCH9GK=H<5J5F=56@9=BH9F9GHF5H9H<5HF9G9HGEI5FH9F@M65G98CBH<9H<F99?ACBH< &#),D@IG
K=H<EI5FH9F@M=BH9F9GHCB@MD5MA9BHG
.<9>IB=CFGI6CF8=B5H9865@5B79=G8I95HA5HIF=HMCB'5F7< .<9>IB=CFGI6CF8=B5H98BCH9GA5M69F9899A985HD5F5HCIFCDH=CB
.<95;;F9;5H9DF=B7=D5@65@5B79C:H<9>IB=CF GI6CF8=B5H98BCH9GK5G
A=@@=CB5GC:979A69F

G5-5@=79BG99K95F95B5IH<CF=N98@9B89FIB89FH<9***5B8<5J9CF=;=B5H98
A=@@=CB@C5BGIB89FH<9 DFC;F5AK=H<
A=@@=CBCIHGH5B8=B;5GC:979A69F
IF=B;\$5BI5FM5B8 96FI5FMK9:IB898
A=@@=CB C:588=H=CB5@***@C5BG
GC:'5F7<K9<58
A=@@=CBCIHGH5B8=B;=B***@C5BG
199LD97H5G=;B=:=75BHDCFH=CB C:H<9G9@C5BGK=@@69:CF;=J9B5B8F9D5=89=H<9F=BD5FHCF=B:I@@6MH<9-=B7@I8=B;6CH<DF=B7=D5@5B8577FI98=BH9F9GH

'%74+6+'5(('4+0)5

197CB8I7H9857CBH=BICIGDI6@=7C::9F=B;C:-9F=9G*F9:9FF98/B=HG:FCA)7HC69FH<FCI;<\$5BI5FM K<9F9957<-9F=9G*F9:9FF98/B=H7CBG=GH98C:CB9G<5F9C:-9F=9G*F9:9FF98-HC7?5B8CB9-9F=9G*F9:9FF9815FF5BH IF=B;H<9H9BIF9C:H<9C::9F=B;K9=GGI98-9F=9G*F9:9FF98/B=HG5B8F979=J98B9HDFC7998GC:
A=@@=CB 5:H9F7CAA=GG=CBG:99G5B85@@C75H987CGHG

.<9-9F=9G*F9:9FF9815FF5BHG5F99L9F7=G56@969;=BB=B;CBH<9:=FGH5BB=J9FG5FMC:H<985H9C:H<9=FCF=;=B5@=GGI5B79 IBH=@5B8=B7@I8=B;H<9:=:H<5BB=J9FG5FMC:H<985H9C:GI7<=GGI5B79
HH<9H=A9C:=GGI5B79H<99L9F7=G9DF=79C:957<-9F=9G *F9:9FF9815FF5BHK5G9EI5@HC5
DF9A=IAHCH<9D9FG<5F99GH=A5H98(0C:CIFCAACB-HC7?ACGHF979BH@M DI6@=G<985B889G=;B5H985GH<9DD@=756@9(06MIG5HH<9H=A9C:=GGI5B79
"CK9J9F=B577CF85B79K=H<H<9H9FAGC:H<9 -9F=9G*F9:9FF9815FF5BHGH<99L9F7=G9DF=79C:957<-9F=9G*F9:9FF9815FF5BH=GGI98DF=CFHCH<9,9J9FG9-HC7?-D@=HK5G

5IHCA5H=75@@M58>IGH98HCF9:@97HH<99::97HC:H<9,9J9FG9-HC7?-D@=H5B8=BH<98=G7F9H=CBC:CIFC5F8C:=F97HCFGH<9 9L9F7=G9DF=795B8H<9BIA69FC:G<5F9G=GGI56@9IDCB9L9F7=G9C:957<-9F=9G*F9:9FF9815FF5BH=GGI98DF=CFHCH<9-D97=5@ =J=89B8K5G58>IGH98HCF9:@97HH<99::97HC:H<9-D97=5@=J=89B8
GC:979A69FH<9F9K9F9-9F=9G *F9:9FF9815FF5BHGHCDIF7<5G9G<5F9GC:CAACB-HC7?CIHGH5B8=B;

-=B79 96FI5FMK9<5J97CB8I7H9857CBH=BICIGDI6@=7C::9F=B;C:IDHC5DDFCL=A5H9@M
A=@@=CBC:CIF -9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?
19=BH9B8HCIG9H<9B9HDFC7998G:FCAH<9C::9F=B;:CF;9B9F5@ 7CFDCF5H9DIFDCG9G57EI=G=H=CBGC:G<5F9GC:CIFCAACB-HC7?5B8*F9:9FF98-HC7?K<9H<9FH<FCI;<CB9CFACF9H9B89F C::9FGG<5F9F9DIF7<5G9GCFCH<9FK=G95B857EI=G=H=CBG7CBG=GH9BHK=H<CIF57EI=G=H=CB5B85GG9HA5B5;9A9BHGHF5H9;=9G
GC: 979A69FK9<58=GGI98G<5F9GC:-9F=9G*F9:9FF98-HC7?5B8G<5F9GC:-9F=9G*F9:9FF98-HC7? 5B8F979=J985;;F9;5H9B9HDFC7998GC:
A=@@=CB5:H9F7CAA=GG=CBG:99G5B85@@C75H987CGHG

)B'5F7<K99GH56@=G<985BT5HH<9A5F?9HUT.'UDFC;F5AH<FCI;<K<=7<K9A5M:FCAH=A9HCH=A9=B CIF8=G7F9H=CBC::9F5B8G9@@G<5F9GC:CAACB-HC7?<5J=B;5B5;;F9;5H9C::9F=B;DF=79C:IDHC
A=@@=CBH<FCI;<5B =BJ9GHA9BH65B?=B;:=FA57H=B;5GH<9G5@9G5;9BH
-5@9GC:CAACB-HC7?IB89FH<9.'DFC;F5AA5M69A5898=F97H@MCBCF H<FCI;<(5G85E5ACB;CH<9FA9H<C8G
19=BH9B8HCIG9H<9B9HDFC7998G:FCAG<5F9GGC@8IB89FH<9.'DFC;F5A=:5BM:CF ;9B9F5@7CFDCF5H9DIFDCG9G57EI=G=H=CBGC:G<5F9GC:CIF*F9:9FF98-HC7?K<9H<9FH<FCI;<CB9CFACF9H9B89FC::9FGG<5F9 F9DIF7<5G9GCFCH<9FK=G95B857EI=G=H=CBG7CBG=GH9BHK=H<CIF57EI=G=H=CB5B85GG9HA5B5;9A9BHGHF5H9;=9G
GC:'5F7< BCG5@9GC:CAACB-HC7?<5J9699BA589IB89FH<9.'DFC;F5A

+8+&'0&510#0&'&'/26+1051(4'('44'&61%-

"C@89FGC:-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?5F99BH=H@98HCF979=J9=: 5G5B8K<9B5IH<CF=N986MCIFC5F8C:=F97HCFG5B8897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G7IAI@5H=J975G<8=J=89B8G CB957<G<5F95H5B5BBI5@F5H9C:
C:H<9-9F=9G*F9:9FF98-HC7?-H5H9805@I9=
9
H<99EI=J5@9BHC:
D9FG<5F9 D9FEI5FH9F
C:H<9-9F=9G*F9:9FF98-HC7?-H5H9805@I9=
9
H<99EI=J5@9BHC:
D9FG<5F9D9FEI5FH9F5B8 C:H<9-9F=9G&*F9:9FF98-HC7?-H5H9805@I9=
9
H<99EI=J5@9BHC:
D9FG<5F9D9FM95FF9GD97H=J9@M
"CK9J9F =:K9:5=@HCH=A9@M897@5F98=GHF=6IH=CBGCF:5=@HCH=A9@MD5M5BM8=GHF=6IH=CBCBH<9-9F=9G&*F9:9FF98-HC7?H<95BBI5@ 8=J=89B8F5H9C:H<9-9F=9G&*F9:9FF98-HC7?K=@@H9ADCF5F=@M=B7F95G96M
D9FM95FIDHC5A5L=AIA5BBI5@F5H9C: C:H<9-9F=9G&*F9:9FF98-HC7?-H5H9805@I9
=J=89B8GCB957<G<5F9C:*F9:9FF98-HC7?69;=B577FI=B;CB5B85F9 7IAI@5H=J9:FCAH<985H9C:=GGI5B79
*F=CFHCH<9D5MA9BHC:5BM8=GHF=6IH=CBGCB-9F=9G&*F9:9FF98-HC7?=BF9GD97HC:5 ;=J9BM95FK9AIGH:=FGH897@5F95B8D5M8=J=89B8GCBH<9CAACB-HC7?=BF9GD97HC:GI7<M95F=B5B5;;F9;5H95ACIBH9EI5@ HCH<9#B=H=5@=J=89B85BBCIB7986MCIFC5F8C:=F97HCFG5HH<99B8C:H<9DF=CF:=G75@M95F
)B979A69FK9 5BBCIB7985B#B=H=5@=J=89B8CBG<5F9GC:CIFCAACB-HC7?:CF:=G75@M95F=BH<95;;F9;5H95ACIBHC:

FCAH<985H9C:=GGI5B79IBH=@H<9:=:H<5BB=J9FG5FMC:H<985H9C:=GGI5B79<C@89FGC:-9F=9G*F9:9FF98-HC7?5B8 -9F=9G*F9:9FF98-HC7?A5MF9EI=F9IGHCF9899AGI7<G<5F9G5H58=G7CIBHHCH<9-9F=9G*F9:9FF98-H5H9805@I95B8-9F=9G *F9:9FF98-H5H9805@I9F9GD97H=J9@M
FCA5B85:H9FH<9:=:H<5BB=J9FG5FMC:H<985H9C:CF=;=B5@=GGI5B79C:5BMG<5F9C:CIF *F9:9FF98-HC7?K9;9B9F5@@MGI6>97HHC79FH5=B7CB8=H=CBG<5J9H<9F=;<H6IHBCHH<9C6@=;5H=CBHCF9899A5B8H<9<C@89FC: GI7<G<5F9A5MF9EI=F9IGHCF9899AGI7<G<5F95H5F989ADH=CBDF=799EI5@HCC:H<9GH5H98J5@I9C:GI7<G<5F9D@IG5BM 577FI986IHIBD5=88=J=89B8G=BF9GD97HC:GI7<G<5F95GC:H<99::97H=J985H9C:H<9F989ADH=CB
.<9F989ADH=CBDF=79=B F9GD97HC:5BMG<5F9C:*F9:9FF98-HC7?K<9H<9FF9899A985HCIFCDH=CBCF5HH<9CDH=CBC:5<C@89FA5M69D5=8=B75G<CF=B G<5F9GC:CAACB-HC7?=BCIFGC@98=G7F9H=CB
IF=B;H<9M95F9B898979A69FK9F9899A98G<5F9GC: -9F=9G*F9:9FF98-HC7?5B8BCG<5F9GC:-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?

Summary of Material Contractual Obligations

The following summarizes our material contractual obligations as of December 31, 2020:

	Payments Due by Period
		Total 2021		2022 - 2023		2024 - 2025		Thereafter
						(in thousands)
Debt:
Mortgages payable	S	97,100	S		S		ਦਿੱਤਾ। ਉਹ		S	97,100
2018 revolving credit facility		166,500				166,500
Secured borrowings (1)		8,457		నిశిస్తుంది. నిర్మించి నిర్మించి నిర్మించి		896		તેરી		6,027
Other (1) (2)		55,784		1,692		16,233		1,720		36,139
Interest and fees:
Debt (3)		46,691		9,354		14,174		10,820		12,343
Other contractual obligations:
Borrower advances		3,963		3,963
Loan commitments		34,067		34,067
Tenant improvements		7,638		5,369		2,269
Total material contractual obligations	A	420,200	S	55,028	S	200,072	S	13.491	S	151,609

(1) 7(a) loan-backed notes (which are included in Other) are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and or loan liquidations or chargeoffs. No payment is due unless payments are received from the borrowers on the underlying loans.

• (2) Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and borrowed funds from the Federal Reserve through the PPPLF.
• Excludes premiums and discounts. For the mortgage payable, borrowed funds from the Federal Reserve through the (3) PPPLF and junior subordinated notes, the interest expense is calculated based on the effective interest rate on the related debt as of December 31, 2020. For the 2018 Credit Facility, we use the balance outstanding and the applicable rates in effect as of December 31, 2020 to calculate interest expense and the unused commitment fees. For our secured borrowings related to our government guaranteed loans, we use the variable rate in effect as of December 31, 2020.

Off Balance Sheet Arrangements

As of December 31, 2020, we did not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates and Recently Issued Accounting Pronouncements

The discussion and analysis of our historical financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statements and the reported amounts of revenues and expenses during the reporting period. While we believe that our estimates are based on reasonable assumptions and judgments at the time they are made, some of our assumptions, estimates and judgments will inevitably prove to be incorrect. As a result, actual results could differ from our estimates, and those differences could be material.

We believe the following critical accounting policies, among others, affect our more significant estimates and assumptions used in preparing our consolidated financial statements. For a discussion of recently issued accounting literature, see Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K.

Recoverability of Investments in Real Estate

As described in Note 2 to the consolidated financial statements included in this Annual Report on Form 10-K, investments in real estate are evaluated for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If, and when, such events or changes in circumstances are present, the

F97CJ9F56=@=HMC:5GG9HGHC69<9@85B8IG98=GA95GIF986M57CAD5F=GCBC:H<975FFM=B;5ACIBHHCH<9:IHIF9IB8=G7CIBH9875G< :@CKG9LD97H98HC69;9B9F5H986MH<95GG9HG5B8=HG9J9BHI5@8=GDCG=H=CB

:H<9IB8=G7CIBH9875G<:@CKG5F9@9GGH<5BH<9 75FFM=B;5ACIBHC:H<95GG9HG5B=AD5=FA9BH=GF97C;B=N98HCH<99LH9BHH<975FFM=B;5ACIBHC:H<95GG9HG9L7998GH<99GH=A5H98 :5=FJ5@I9C:H<95GG9HG

GG9HG<9@8:CFG5@95F9F9DCFH985HH<9@CK9FC:H<95GG9HVG75FFM=B;5ACIBHCF:5=FJ5@I9@9GG7CGHHC G9@@

)IFDFC79GG:CF9J5@I5H=B;F95@9GH5H9=AD5=FA9BHF9EI=F9GA5B5;9A9BHHCA5?9G=;B=:=75BH5GGIADH=CBGF9@5H98HC 79FH5=B=BDIHG=B7@I8=B;F9BH5@F5H9G@95G9?IDD9F=C8C77ID5B7M9GH=A5H98<C@8=B;D9F=C8G75D=H5@9LD9B8=HIF9G;FCKH<F5H9G A5F?9H8=G7CIBHF5H9G5B8H9FA=B5@75D=H5@=N5H=CBF5H9G
CFCIF<CH9@DFCD9FHM588=H=CB5@=BDIHG7CBG=89F98=B7@I89,9J*, 5B8,
.<9G9=BDIHGF9EI=F95GI6>97H=J99J5@I5H=CB65G98CBH<9GD97=:=7DFCD9FHM5B8A5F?9H
<5B;9G=BH<95GGIADH=CBG 7CI@8<5J95G=;B=:=75BH=AD57HCB9=H<9FH<9:5=FJ5@I9H<95ACIBHC:=AD5=FA9BH7<5F;9=:5BMCF6CH<

1#0155'5'48'5

G89G7F=698=B(CH95B8(CH9HCH<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG=B7@I898=BH<=GBBI5@,9DCFHCB CFA? %5GC:979A69F5B8K9<58@C5BGF979=J56@9C:
A=@@=CB5B8
A=@@=CBF9GD97H=J9@M5B8@C5B@CGG F9G9FJ9GC:5B8F9GD97H=J9@M
)B5EI5FH9F@M65G=G5B8ACF9:F9EI9BH@M=:=B8=75HCFG9L=GHK99J5@I5H9H<9 7C@@97H56=@=HMC:CIF@C5BGF979=J56@9
)IF9J5@I5H=CBC:7C@@97H56=@=HM=BJC@J9GG=;B=:=75BH>I8;A9BH9GH=A5H9G5B85F9J=9KC: H<956=@=HMC:H<96CFFCK9FHCA5?9DF=B7=D5@5B8=BH9F9GHD5MA9BHGH<9IB89F@M=B;7C@@5H9F5@5B8H<96CFFCK9FGV6IG=B9GG AC89@G5B8:IHIF9CD9F5H=CBG=B577CF85B79K=H<-65;05.,5*0,:6::65;05.,5*0,:5B8- ",*,0=()3,: CFH<9M95FG9B898979A69F5B8K9F97CF8985B9HF97CJ9FMC:5B8B9H =AD5=FA9BH@CGG9GC:5B8F9GD97H=J9@MCBCIF@C5BGF979=J56@9
.<9F9K9F9BCA5H9F=5@@C5BGF979=J56@9 GI6>97HHC7F98=HF=G?K<=7<K9F97CBG=89F98HC69=AD5=F985GC:979A69FCF
195@GC9GH56@=G<5;9B9F5@@C5B @CGGF9G9FJ9K<9B5J5=@56@9=B:CFA5H=CB=B8=75H9GH<5H=H=GDFC656@95@CGG<5GC77IFF9865G98CBH<975FFM=B;J5@I9C:H<9 DCFH:C@=C5B8H<95ACIBHC:H9@CGG75B69F95GCB56@M9GH=A5H98 -=;B=:=75BHI8;A9BH=GF9EI=F98=B89H9FA=B=B;H<9;9B9F5@ @C5B@CGGF9G9FJ9=B7@I8=B;9GH=A5H9GC:H<9@=?9@=<CC8C:89:5I@H5B8H<99GH=A5H98:5=FJ5@I9C:H<97C@@5H9F5@
.<9;9B9F5@@C5B @CGGF9G9FJ9=B7@I89GH<CG9@C5BGK<=7<A5M<5J9B9;5H=J97<5F57H9F=GH=7GK<=7<<5J9BCHM9H697CA9?BCKBHCIG

B588=H=CB HCH<9F9G9FJ9G9GH56@=G<98CB@C5BGBCH7CBG=89F98=AD5=F98H<5H<5J9699B9J5@I5H98IB89F5GD97=:=79J5@I5H=CBK99GH56@=G< H<9;9B9F5@@C5B@CGGF9G9FJ9IG=B;57CBG=GH9BHA9H<C8C@C;MHC89H9FA=B95@CGGD9F79BH5;9HC695DD@=98HC@C5B65@5B79G .<9G9@CGGD9F79BH5;9G5F965G98CBA5BM:57HCFGDF=A5F=@M7IAI@5H=J95B8F979BH@CGG<=GHCFM5B8;9B9F5@97CBCA=7 7CB8=H=CBG

.<99J5@I5H=CBC:H<97C@@97H56=@=HMC:CIF@C5BGF979=J56@9=G<=;<@MGI6>97H=J95B8=G65G98=BD5FHCB:57HCFGH<5H 7CI@88=::9FA5H9F=5@@M:FCA57HI5@F9GI@HG=B:IHIF9D9F=C8G

:H<9G9:57HCFG7<5B;9K9A5MF97C;B=N95B=AD5=FA9BH@CGG K<=7<7CI@869A5H9F=5@

#'BC8<0C43%4A(70A4+0;D4

19<5J9DF9D5F985B9GH=A5H9C:H<9D9FG<5F9J5@I9C:957<C:CIF-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98 -HC7?5GC:979A69F=BCF89FHC5GG=GH6FC?9F?895@9FGH<5H5F9D5FH=7=D5H=B;=BCIFDI6@=7C::9F=B;C:-9F=9G *F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?=BA99H=B;H<9=FC6@=;5H=CBGIB89F5DD@=756@9 #(,FI@9G
.<=G9GH=A5H9IH=@=N9G H<9:5=FJ5@I9GC:CIF=BJ9GHA9BHG=BF95@9GH5H95B879FH5=B@9B8=B;5GG9HG5GK9@@5GH<975FFM=B;5ACIBHGC:CIFCH<9F5GG9HG5B8 @=56=@=H=9G=B957<75G95GC:979A69FH<9T5@7I@5H98GG9HG5B8&=56=@=H=9GU
-D97=:=75@@MK98=J=898=H<9:5=F J5@I9GC:CIF=BJ9GHA9BHG=BF95@9GH5H95B879FH5=B@9B8=B;5GG9HG5B8H<975FFM=B;5ACIBHGC:CIFCH<9F5GG9HG@9GGH<975FFM=B; 5ACIBHGC:CIF@=56=@=H=9G=B957<75G95GC:979A69F6M==H<9BIA69FC:G<5F9GC:-9F=9G*F9:9FF98-HC7?5B8 -9F=9G*F9:9FF98-HC7?CIHGH5B8=B;5GC:H<5H85H9
.<9:5=FJ5@I9GC:CIF=BJ9GHA9BHG=BF95@9GH5H95B879FH5=B@9B8=B;5GG9HG K9F989H9FA=B98K=H<A5H9F=5@5GG=GH5B79:FCAH<=F8?D5FHM5DDF5=G5@:=FAG9B;5;98HCJ5@I9CIF=BJ9GHA9BHG=BF95@9GH5H95B8 79FH5=B@9B8=B;5GG9HG=B957<75G9=B577CF85B79K=H<GH5B85F8GG9H:CFH<6MH<9A9F=75B#BGH=HIH9C:9FH=:=98*I6@=7 77CIBH5BHG
1969@=9J9CIFA9H<C8C@C;MC:89H9FA=B=B;H<95@7I@5H98GG9HG5B8&=56=@=H=9G7CB:CFAGHCGH5B85F8=B8IGHFM DF57H=79G5B8=GF95GCB56@M89G=;B98HC9BGIF9=H=GF9@=56@9

.<9H9FAGC:H<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?9LDF9GG@MDFCJ=89H<5HH<95ACIBHH<5H5<C@89F C:-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?5GH<975G9A5M69KCI@8699BH=H@98HCF979=J9IDCBH<9F989ADH=CB C:H<9-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?5GH<975G9A5M69CFCIF@=EI=85H=CBKCI@8699EI5@HCH<9-9F=9G *F9:9FF98-HC7?-H5H9805@I9CF-9F=9G*F9:9FF98-HC7?-H5H9805@I95GH<975G9A5M69D@IG=B957<75G95@@ 577IAI@5H98577FI985B8IBD5=88=J=89B8GH<9F9CBH9T'5L=AIA05@I9UGI697HHC5BM5DD@=756@9F989ADH=CB:99=BH<9 75G9C:5F989ADH=CB6MGI7<<C@89F
G5F9GI@H=BBC9J9BHKCI@85<C@89FC:-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98 -HC7?5GH<975G9A5M69699BH=H@98HCF979=J95B5ACIBH;F95H9FH<5BH<9'5L=AIA05@I9IDCBH<9F989ADH=CBC:GI7< G<5F9GCFCIF@=EI=85H=CB
77CF8=B;@M5@H<CI;<H<99GH=A5H98J5@I9C:H<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98 -HC7?75@7I@5H9865G98CBH<95@7I@5H98GG9HG5B8&=56=@=H=9G5G89G7F=69856CJ99L799898H<9'5L=AIA05@I9K9

.56@9C:CBH9BHG

89H9FA=B98H<5HH<99GH=A5H98J5@I9C:957<C:H<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?5GC:979A69F K5G9EI5@HC
D9FG<5F9D@IG577FI985B8IBD5=88=J=89B8G

8E834=3B

GC:979A69FH<9F9K9F95B8G<5F9GC:-9F=9G*F9:9FF98-HC7?=GGI985B8 CIHGH5B8=B;F9GD97H=J9@MG<5F9GC:-9F=9G*F9:9FF98-HC7?=GGI985B8CIHGH5B8=B;5B8G<5F9GC: -9F=9G&*F9:9FF98-HC7?=GGI985B8CIHGH5B8=B;F9GD97H=J9@M5B8G<5F9GC:CAACB-HC7?=GGI985B8CIHGH5B8=B;

"C@89FGC:*F9:9FF98-HC7?5F99BH=H@98HCF979=J9=:5G5B8K<9B5IH<CF=N986MCIFC5F8C:=F97HCFG5B8897@5F98 6MIGCIHC:@9;5@@M5J5=@56@9:IB8G7IAI@5H=J975G<8=J=89B8G5G:C@@CKG

	==D0;'0C4>58E834=30B0>5BC0C43E0;D4
-9F=9G*F9:9FF98-HC7?
-9F=9G*F9:9FF98-HC7?
-9F=9G&*F9:9FF98-HC7?

#:K9:5=@HCH=A9@M897@5F98=GHF=6IH=CBGCF:5=@HCH=A9@MD5M8=GHF=6IH=CBGCBH<9-9F=9G&*F9:9FF98-HC7?H<95BBI5@ 8=J=89B8F5H9C:H<9-9F=9G&*F9:9FF98-HC7?K=@@H9ADCF5F=@M=B7F95G96M
D9FM95FIDHC5A5L=AIAF5H9C: D9F5BBIA

=J=89B8GCB957<G<5F9C:*F9:9FF98-HC7?69;=B577FI=B;CB5B85F97IAI@5H=J9:FCAH<985H9C:=GGI5B79
*F=CFHC H<9D5MA9BHC:5BM8=GHF=6IH=CBGCB-9F=9G&*F9:9FF98-HC7?=BF9GD97HC:5;=J9BM95FK9AIGH:=FGH897@5F95B8D5M8=J=89B8G CBH<9CAACB-HC7?=BF9GD97HC:GI7<M95F=B5B5;;F9;5H95ACIBH9EI5@HCH<9#B=H=5@=J=89B85BBCIB7986MCIFC5F8C: =F97HCFG5HH<99B8C:H<9DF=CF:=G75@M95F
)B979A69FK95BBCIB7985B#B=H=5@=J=89B8CBG<5F9GC:CIF CAACB-HC7?:CF:=G75@M95F=BH<95;;F9;5H95ACIBHC:

199LD97HHCH=A9@MD5M8=J=89B8GCBH<9*F9:9FF98-HC7?=B5FF95FGCB5ACBH<@M65G=GIB@9GGCIFF9GI@HGC: CD9F5H=CBGCIF;9B9F5@:=B5B7=B;7CB8=H=CBG;9B9F5@97CBCA=77CB8=H=CBG5DD@=756@9F9EI=F9A9BHGC:H<9'!&CFCH<9F :57HCFGA5?9=H=ADFI89BHHC8CGC
.<9H=A=B;5B85ACIBHC:8=J=89B8G897@5F985B8D5=8CBCIF*F9:9FF98-HC7?K=@@69 89H9FA=B986MCIFC5F8C:=F97HCFG=B=HGGC@98=G7F9H=CB5B8A5MJ5FM:FCAH=A9HCH=A9

"C@89FGC:CIFCAACB-HC7?5F99BH=H@98HCF979=J98=J=89B8G=:5G5B8K<9B5IH<CF=N986MH<9C5F8C:=F97HCFG 5B8897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G

B89H9FA=B=B;CIF8=J=89B8DC@=7MH<9C5F8C:=F97HCFG7CBG=89FGA5BM :57HCFG=B7@I8=B;H<95ACIBHC:75G<F9GCIF79G5J5=@56@9:CF8=J=89B88=GHF=6IH=CBG75D=H5@GD9B8=B;D@5BG75G<:@CKCIF :=B5B7=5@DCG=H=CB5DD@=756@9F9EI=F9A9BHGC:H<9'!&5BM5DD@=756@97CBHF57HI5@F9GHF=7H=CBG5B8:IHIF9;FCKH<=B(05B8 75G<:@CKD9FG<5F9DFCGD97HG

CBG9EI9BH@MH<98=J=89B8F5H9CB5EI5FH9F@M65G=G8C9GBCHB979GG5F=@M7CFF9@5H98=F97H@MHC5BM =B8=J=8I5@:57HCF

C4< &D0=C8C0C8E40=3&D0;8C0C8E48B2;>BDA4B1>DC"0A:4C'8B:

.<9:5=FJ5@I9C:CIFACFH;5;9D5M56@9=GG9BG=H=J9HC:@I7HI5H=CBG=B=BH9F9GHF5H9G
=G7CIBH9875G<:@CK5B5@MG=G=G ;9B9F5@@MIG98HC9GH=A5H9H<9:5=FJ5@I9C:CIFACFH;5;9D5M56@9IG=B;5F5H9C:
5B8
5GC:979A69F 5B8F9GD97H=J9@M
GC:979A69F5B8CIFACFH;5;9D5M56@96CH<<5856CC?J5@I9C:
A=@@=CB5B8 5:5=FJ5@I9C:
A=@@=CB5B8
A=@@=CBF9GD97H=J9@M

)IF:IHIF9=B7CA975G<:@CK5B8:5=FJ5@I9GF9@9J5BHHC:=B5B7=5@=BGHFIA9BHG5F989D9B89BHIDCBDF9J5@9BHA5F?9H =BH9F9GHF5H9G
'5F?9HF=G?F9:9FGHCH<9F=G?C:@CGG:FCA58J9FG97<5B;9G=BA5F?9HDF=79G5B8=BH9F9GHF5H9G
195F99LDCG98HC A5F?9HF=G?=BH<9:CFAC:7<5B;9G=B=BH9F9GHF5H9G5B8H<9DCH9BH=5@=AD57HGI7<7<5B;9GA5M<5J9CBH<975G<:@CKG:FCACIF :@C5H=B;F5H9896HCFH<9:5=FJ5@I9GC:CIF:=L98F5H9896H
GC:979A69F5B89L7@I8=B;DF9A=IAG8=G7CIBHG 5B889:9FF98@C5B7CGHG
A=@@=CBCF
5B8
A=@@=CBCF
C:CIF896HF9GD97H=J9@MK5G:=L98F5H9 ACFH;5;9@C5BG5B8
A=@@=CBCF
5B8
A=@@=CBCF
F9GD97H=J9@MK5G:@C5H=B;F5H96CFFCK=B;G 5G98CBH<9@9J9@C::@C5H=B;F5H9896HCIHGH5B8=B;5GC:979A69F5B85
65G=GDC=BH7<5B;9=B&#), KCI@8F9GI@H=B5B5BBI5@=AD57HHCCIF95FB=B;GC:5DDFCL=A5H9@M5B8F9GD97H=J9@M
1975@7I@5H9=BH9F9GH F5H9G9BG=H=J=HM6MAI@H=D@M=B;H<95ACIBHC::@C5H=B;F5H9896H6MH<9F9GD97H=J97<5B;9=BF5H9
.<9G9BG=H=J=HM5B5@MG=G8C9GBCH H5?9=BHC7CBG=89F5H=CBDCGG=6@97<5B;9G=BH<965@5B79GCF:5=FJ5@I9C:CIF:@C5H=B;F5H9896H

C4< 8=0=280;(C0C4<4=CB0=3(D??;4<4=C0AH0C0

.<9=B:CFA5H=CBF9EI=F986MH<=G#H9A=G=B7CFDCF5H98<9F9=B6MF9:9F9B79HCH<9 =B5B7=5@-H5H9A9BHG5B8I8=HCFGV ,9DCFH69;=BB=B;CBD5;9 

C4< 70=64B8=0=38B06A44<4=CBF8C722>D=C0=CB>=22>D=C8=60=38=0=280;8B2;>BDA4

(CB9

C4< >=CA>;B0=3%A>243DA4B

E0;D0C8>=>58B2;>BDA4>=CA>;B0=3%A>243DA4B

GC:979A69FK975FF=98CIH5B9J5@I5H=CBIB89FH<9GID9FJ=G=CB5B8K=H<H<9D5FH=7=D5H=CBC:CIF A5B5;9A9BH=B7@I8=B;CIF*F=B7=D5@L97IH=J9)::=79F5B8*F=B7=D5@ =B5B7=5@)::=79FF9;5F8=B;H<99::97H=J9B9GGC:H<9 89G=;B5B8CD9F5H=CBC:CIF8=G7@CGIF97CBHFC@G5B8DFC798IF9G5G89:=B98=B,I@9G5?95B88?9IB89FH<9 L7<5B;97H5HH<99B8C:H<9D9F=C87CJ9F986MH<=GF9DCFH
5G98CBH<5H9J5@I5H=CBH<9<=9:L97IH=J9)::=79F5B8<=9: =B5B7=5@)::=79F7CB7@I8985GC:H<5HH=A9H<5HCIF8=G7@CGIF97CBHFC@G5B8DFC798IF9GK9F99::97H=J9=B9BGIF=B;H<5H =B:CFA5H=CBF9EI=F98HC698=G7@CG986MIG=BH<9F9DCFHGH<5HK9:=@9CFGI6A=HHCH<9-IB89FH<9L7<5B;97H=GF97CF898 DFC79GG98GIAA5F=N985B8F9DCFH98K=H<=BH<9H=A9D9F=C8GGD97=:=986MH<9-VGFI@9G5B8:CFAG5B8=B7@I897CBHFC@G5B8 DFC798IF9G89G=;B98HC9BGIF9H<9=B:CFA5H=CBF9EI=F98HC698=G7@CG986MIG=BGI7<F9DCFHG=G577IAI@5H985B87CAAIB=75H98 HCA5B5;9A9BH=B7@I8=B;CIF<=9:L97IH=J9)::=79F5B8CIF<=9: =B5B7=5@)::=79F5G5DDFCDF=5H9HC5@@CKH=A9@M 897=G=CBGF9;5F8=B;F9EI=F988=G7@CGIF9

"0=064<4=CNB'4?>AC>==C4A=0;>=CA>;\$E4A8=0=280;'4?>AC8=6

'5B5;9A9BH=GF9GDCBG=6@9:CF9GH56@=G<=B;5B8A5=BH5=B=B;589EI5H9=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5G 89:=B98=B,I@95?:IB89FH<9L7<5B;97H
)IF=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;=G89G=;B98HCDFCJ=89 F95GCB56@95GGIF5B79F9;5F8=B;H<9F9@=56=@=HMC::=B5B7=5@F9DCFH=B;5B8H<9DF9D5F5H=CBC::=B5B7=5@GH5H9A9BHG:CF9LH9FB5@ DIFDCG9G=B577CF85B79K=H<;9B9F5@@M5779DH98577CIBH=B;DF=B7=D@9G
19F9J=9K98H<9F9GI@HGC:A5B5;9A9BHVG5GG9GGA9BH K=H<H<9I8=HCAA=HH99C:H<9C5F8C:=F97HCFG

'5B5;9A9BH5GG9GG98H<99::97H=J9B9GGC:CIF=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5GC:979A69F

B A5?=B;H<=G5GG9GGA9BHA5B5;9A9BHIG98H<97F=H9F=5G9H:CFH<6MH<9CAA=HH99C:-DCBGCF=B;)F;5B=N5H=CBGC:H<9.F958K5M CAA=GG=CB=B5;,95(365;963C5;,.9(;,+9(4,>692 5G98CBH<9=F5GG9GGA9BHA5B5;9A9BH89H9FA=B98H<5H5GC: 979A69FCIF=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;K5G9::97H=J965G98CBH<CG97F=H9F=5

.<99::97H=J9B9GGC:CIF=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5GC:979A69F<5G699B5I8=H986M9@C=HH9 .CI7<9&&*5B=B89D9B89BHF9;=GH9F98DI6@=7577CIBH=B;:=FA5GGH5H98=BH<9=FF9DCFHK<=7<5DD95FG<9F9=B

'%\$')\$#%##)'()'%*!\$*#)#'"

.CH<9G<5F9<C@89FG5B8H<9C5F8C:=F97HCFGC:#'CAA9F7=5@.FIGHCFDCF5H=CB

\$?8=8>=>==C4A=0;>=CA>;>E4A8=0=280;'4?>AC8=6

19<5J95I8=H98H<9=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;C:#'CAA9F7=5@.FIGHCFDCF5H=CBH<9TCAD5BMU5GC: 979A69F65G98CB7F=H9F=59GH56@=G<98=B5;,95(365;963C5;,.9(;,+9(4,>692 =GGI986MH<9CAA=HH99 C:-DCBGCF=B;)F;5B=N5H=CBGC:H<9.F958K5MCAA=GG=CB)-)

BCIFCD=B=CBH<9CAD5BMA5=BH5=B98=B5@@A5H9F=5@ F9GD97HG9::97H=J9=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5GC:979A69F65G98CB7F=H9F=59GH56@=G<98=B5;,95(3 65;963C5;,.9(;,+9(4,>692 =GGI986M)-)

19<5J95@GC5I8=H98=B577CF85B79K=H<H<9GH5B85F8GC:H<9*I6@=7CAD5BM77CIBH=B;)J9FG=;<HC5F8/B=H98-H5H9G *)H<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG5GC:5B8:CFH<9M95F9B898979A69FC:H<9CAD5BM5B8CIF F9DCFH85H98'5F7<9LDF9GG985BIBEI5@=:=98CD=B=CBCBH<CG9:=B5B7=5@GH5H9A9BHG

0B8B5>A\$?8=8>=

.<9CAD5BMVGA5B5;9A9BH=GF9GDCBG=6@9:CFA5=BH5=B=B;9::97H=J9=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5B8:CF=HG 5GG9GGA9BHC:H<99::97H=J9B9GGC:=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;=B7@I898=BH<9577CAD5BM=B;#H9A '5B5;9A9BHG,9DCFHCB#BH9FB5@CBHFC@CJ9F =B5B7=5@,9DCFH=B;
)IFF9GDCBG=6=@=HM=GHC9LDF9GG5BCD=B=CBCBH<9 CAD5BMVG=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;65G98CBCIF5I8=H
195F95DI6@=7577CIBH=B;:=FAF9;=GH9F98K=H<H<9 *)5B85F9F9EI=F98HC69=B89D9B89BHK=H<F9GD97HHCH<9CAD5BM=B577CF85B79K=H<H<9/
:989F5@G97IF=H=9G@5KG5B8 H<95DD@=756@9FI@9G5B8F9;I@5H=CBGC:H<9-97IF=H=9G5B8L7<5B;9CAA=GG=CB5B8H<9*)

197CB8I7H98CIF5I8=H=B577CF85B79K=H<H<9GH5B85F8GC:H<9*)
.<CG9GH5B85F8GF9EI=F9H<5HK9D@5B5B8D9F:CFAH<9 5I8=HHCC6H5=BF95GCB56@95GGIF5B7956CIHK<9H<9F9::97H=J9=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;K5GA5=BH5=B98=B5@@ A5H9F=5@F9GD97HG
)IF5I8=H=B7@I898C6H5=B=B;5BIB89FGH5B8=B;C:=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5GG9GG=B;H<9F=G? H<5H5A5H9F=5@K95?B9GG9L=GHGH9GH=B;5B89J5@I5H=B;H<989G=;B5B8CD9F5H=B;9::97H=J9B9GGC:=BH9FB5@7CBHFC@65G98CBH<9 5GG9GG98F=G?5B8D9F:CFA=B;GI7<CH<9FDFC798IF9G5GK97CBG=89F98B979GG5FM=BH<97=F7IAGH5B79G
1969@=9J9H<5HCIF5I8=H DFCJ=89G5F95GCB56@965G=G:CFCIFCD=B=CB

458=8C8>=0=3!8<8C0C8>=B>5=C4A=0;>=CA>;>E4A8=0=280;'4?>AC8=6

7CAD5BMVG=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;=G5DFC79GG89G=;B98HCDFCJ=89F95GCB56@95GGIF5B79F9;5F8=B;H<9 F9@=56=@=HMC::=B5B7=5@F9DCFH=B;5B8H<9DF9D5F5H=CBC::=B5B7=5@GH5H9A9BHG:CF9LH9FB5@DIFDCG9G=B577CF85B79K=H<;9B9F5@@M 5779DH98577CIBH=B;DF=B7=D@9G
7CAD5BMVG=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;=B7@I89GH<CG9DC@=7=9G5B8DFC798IF9G H<5HD9FH5=BHCH<9A5=BH9B5B79C:F97CF8GH<5H=BF95GCB56@989H5=@577IF5H9@M5B8:5=F@MF9:@97HH<9HF5BG57H=CBG5B8 8=GDCG=H=CBGC:H<95GG9HGC:H<97CAD5BMDFCJ=89F95GCB56@95GGIF5B79H<5HHF5BG57H=CBG5F9F97CF8985GB979GG5FMHCD9FA=H DF9D5F5H=CBC::=B5B7=5@GH5H9A9BHG=B577CF85B79K=H<;9B9F5@@M5779DH98577CIBH=B;DF=B7=D@9G5B8H<5HF979=DHG5B8 9LD9B8=HIF9GC:H<97CAD5BM5F969=B;A589CB@M=B577CF85B79K=H<5IH<CF=N5H=CBGC:A5B5;9A9BH5B88=F97HCFGC:H<9 7CAD5BM5B8DFCJ=89F95GCB56@95GGIF5B79F9;5F8=B;DF9J9BH=CBCFH=A9@M89H97H=CBC:IB5IH<CF=N9857EI=G=H=CBIG9CF 8=GDCG=H=CBC:H<97CAD5BMVG5GG9HGH<5H7CI@8<5J95A5H9F=5@9::97HCBH<9:=B5B7=5@GH5H9A9BHG

975IG9C:=HG=B<9F9BH@=A=H5H=CBG=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;A5MBCHDF9J9BHCF89H97HA=GGH5H9A9BHG
@GC DFC>97H=CBGC:5BM9J5@I5H=CBC:9::97H=J9B9GGHC:IHIF9D9F=C8G5F9GI6>97HHCH<9F=G?H<5H7CBHFC@GA5M697CA9=B589EI5H9 6975IG9C:7<5B;9G=B7CB8=H=CBGCFH<5HH<989;F99C:7CAD@=5B79K=H<H<9DC@=7=9GCFDFC798IF9GA5M89H9F=CF5H9

G9@C=HH9.CI7<9&&*

&CGB;9@9G '5F7<

!8<8C0C8>=B>=C745542C8E4=4BB>5>=CA>;B

)IFA5B5;9A9BH=B7@I8=B;CIF<=9:L97IH=J9)::=79F5B8<=9: =B5B7=5@)::=79F8C9GBCH9LD97HH<5HCIF 8=G7@CGIF97CBHFC@GCFCIF=BH9FB5@7CBHFC@GK=@@DF9J9BH5@@9FFCFG5B8:F5I8
7CBHFC@GMGH9ABCA5HH9F<CKK9@@89G=;B985B8 CD9F5H9875BDFCJ=89CB@MF95GCB56@9BCH56GC@IH95GGIF5B79H<5HH97CBHFC@GMGH9AVGC697H=J9GK=@@69A9H
IFH<9FH<9 89G=;BC:57CBHFC@GMGH9AAIGHF9:@97HH<9:57HH<5HH<9F95F9F9GCIF797CBGHF5=BHG5B8H<969B9:=HGC:7CBHFC@GAIGH69 7CBG=89F98F9@5H=J9HCH<9=F7CGHG
975IG9C:H<9=B<9F9BH@=A=H5H=CBG=B5@@7CBHFC@GMGH9AGBC9J5@I5H=CBC:7CBHFC@G75B DFCJ=8956GC@IH95GGIF5B79H<5H5@@7CBHFC@=GGI9G5B8=BGH5B79GC::F5I8=:5BM<5J9699B89H97H98
.<9G9=B<9F9BH@=A=H5H=CBG =B7@I89H<9F95@=H=9GH<5H>I8;A9BHG=B897=G=CBA5?=B;75B69:5I@HM5B8H<5H6F95?8CKBG75BC77IF6975IG9C:G=AD@99FFCFCF A=GH5?9
CBHFC@G75B5@GC697=F7IAJ9BH986MH<9=B8=J=8I5@57HGC:GCA9D9FGCBG6M7C@@IG=CBC:HKCCFACF9D9CD@9CF6M A5B5;9A9BHCJ9FF=89C:H<97CBHFC@G
.<989G=;BC:5BMGMGH9AC:7CBHFC@G=G65G98=BD5FHIDCB79FH5=B5GGIADH=CBG56CIHH<9 @=?9@=<CC8C::IHIF99J9BHG5B8H<9F975B69BC5GGIF5B79H<5H5BM89G=;BK=@@GI77998=B57<=9J=B;=HGGH5H98;C5@GIB89F5@@ DCH9BH=5@:IHIF97CB8=H=CBG
)J9FH=A97CBHFC@GA5M697CA9=B589EI5H96975IG9C:7<5B;9G=B7CB8=H=CBGCF89H9F=CF5H=CB=BH<9 89;F99C:7CAD@=5B79K=H<5GGC7=5H98DC@=7=9GCFDFC798IF9G
975IG9C:H<9=B<9F9BH@=A=H5H=CBG=B57CGH9::97H=J97CBHFC@ GMGH9AA=GGH5H9A9BHG8I9HC9FFCFCF:F5I8A5MC77IF5B8BCH6989H97H98

70=64B8==C4A=0;>=CA>;\$E4A8=0=280;'4?>AC8=6

.<9F9<5J9699BBC7<5B;9G=BCIF=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;H<5HC77IFF988IF=B;H<9EI5FH9F9B898 979A69FH<5H<5J9A5H9F=5@@M5::97H98CF5F9F95GCB56@M@=?9@MHCA5H9F=5@@M5::97HCIF=BH9FB5@7CBHFC@CJ9F:=B5B7=5@ F9DCFH=B;

C4< \$C74A=5>A<0C8>=

(CB9

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information required by this Item regarding our directors and corporate governance, including information with respect to beneficial ownership reporting compliance, will appear in the Proxy Statement we will deliver to our stockholders in connection with our 2021 Annual Meeting of Stockholders. Such information is incorporated herein by reference. Information relating to the registrant's Code of Business Conduct and Ethics that applies to its employees, including its senior financial officers, is included in Part I of this Annual Report on Form 10-K under "Item 1-Business-Available Information "

Item 11. Executive Compensation

The information required by this Item will appear in the Proxy Statement we will deliver to our stockholders in connection with our 2021 Annual Meeting of Stockholders. Such information is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Related Stockholder Matters

The information required by this Item regarding security of certain beneficial owners and management will appear in the Proxy Statement we will deliver to our stockholders in connection with our 2021 Annual Meeting of Stockholders. Such information is incorporated herein by reference. Information relating to securities authorized for equity compensation plans is included in Part II of this Annual Report on Form 10-K under "Item 5—Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities."

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this Item will appear in the Proxy Statement we will deliver to our stockholders in connection with our 2021 Annual Meeting of Stockholders. Such information is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services

The information required by this Item will appear in the Proxy Statement we will deliver to our stockholders in connection with our 2021 Annual Meeting of Stockholders. Such information is incorporated herein by reference.

%')+

C4<? G7818CB0=38=0=280;(C0C4<4=C(2743D;4B

5
=B5B7=5@-H5H9A9BHG

.<9@=GHC:H<9:=B5B7=5@GH5H9A9BHG:=@985GD5FHC:H<=GBBI5@,9DCFHCB CFA?%=GG9H:CFH<CBD5;9 ?<9F9=B

=B5B7=5@-H5H9A9BH-7<98I@9G

.<9@=GHC:H<9:=B5B7=5@GH5H9A9BHG7<98I@9G:=@985GD5FHC:H<=GBBI5@,9DCFHCB CFA?%=GG9H:CFH<CBD5;9 ? <9F9=B

(CH9)H<9FG7<98I@9G5F9CA=HH986975IG9C:H<956G9B79C:7CB8=H=CBGIB89FK<=7<H<9M5F9F9EI=F98CF6975IG9H<9 F9EI=F98=B:CFA5H=CB=G;=J9B=BH<9:=B5B7=5@GH5H9A9BHGCFBCH9GH<9F9HC

L<=6=HG

.<9:C@@CK=B;8C7IA9BHG5F9=B7@I898CF=B7CFDCF5H986MF9:9F9B79=BH<=GBBI5@,9DCFHCB CFA?%

L<=6=H (C	C7IA9BH
	FH=7@9GC:A9B8A9BH5B8,9GH5H9A9BHC:*'CAA9F7=5@'9F;9F-I6#B7 =B7CFDCF5H986M F9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHVGIFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB'5M
5	FH=7@9GC:A9B8A9BH(5A9<5B;9=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHG IFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB'5M
6	FH=7@9GC:A9B8A9BH,9J9FG9-HC7?-D@=H=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHG IFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB'5M
7	FH=7@9GC:A9B8A9BH*5F05@I997F95G9=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHG IFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB'5M
8	FH=7@9GC:A9B8A9BH,9J9FG9-HC7?-D@=H=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHVG IFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB-9DH9A69F
9	FH=7@9GC:A9B8A9BH*5F05@I997F95G9=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHVG IFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB-9DH9A69F
	FH=7@9G-IDD@9A9BH5FMHCH<9FH=7@9GC:A9B8A9BH5B8,9GH5H9A9BHC:#'CAA9F7=5@.FIGH CFDCF5H=CB89G=;B5H=B;H<9-9F=9G*F9:9FF98-HC7?=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9 ,9;=GHF5BHGIFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB)7HC69F
	A9B8A9BH(C HCH<9FH=7@9G-IDD@9A9BH5FMHCH<9FH=7@9GC:A9B8A9BH5B8,9GH5H9A9BHC:#' CAA9F7=5@.FIGHCFDCF5H=CB89G=;B5H=B;H<9-9F=9G*F9:9FF98-HC7?=B7CFDCF5H986MF9:9F9B79HC L<=6=H HCH<9,9;=GHF5BHVGIFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB\$5BI5FM
	FH=7@9G-IDD@9A9BH5FMHCH<9FH=7@9GC:A9B8A9BH5B8,9GH5H9A9BHC:#'CAA9F7=5@.FIGH CFDCF5H=CB89G=;B5H=B;H<9-9F=9G*F9:9FF98-HC7?=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9 ,9;=GHF5BHVGIFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB\$5BI5FM
	FH=7@9G-IDD@9A9BH5FMHCH<9FH=7@9GC:A9B8A9BH5B8,9GH5H9A9BHC:#'CAA9F7=5@.FIGH CFDCF5H=CB89G=;B5H=B;H<9-9F=9G&F9:9FF98-HC7?=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9 ,9;=GHF5BHGF9?::97H=J9A9B8A9BH(C HCH<9 CFA-?,9;=GHF5H=CB-H5H9A9BH?:=@98 K=H<H<9-CB(CJ9A69F
	M@5KGC:#'CAA9F7=5@.FIGHCFDCF5H=CB=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9 ,9;=GHF5BHGIFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB'5M
	9G7F=DH=CBC:-97IF=H=9GC:#'CAA9F7=5@.FIGHCFDCF5H=CB
	IF7<5G9;F99A9BH5ACB;'CAA9F7=5@.FIGH'F9:9FF985D=H5@.FIGH?5B8.569FB5 *F9:9FF98 IB8=B;#&H8 85H98'5F7<=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9 ,9;=GHF5BHG+I5FH9F@M,9DCFHCB CFA?+:=@98K=H<H<9-CB'5M
	\$IB=CF-I6CF8=B5H98#B89BHIF969HK99B'CAA9F7=5@.FIGH5B8\$'CF;5B<5G95B?(5H=CB5@ GGC7=5H=CB5G.FIGH9985H98'5F7<=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHG +I5FH9F@M,9DCFHCB CFA?+:=@98K=H<H<9-CB'5M
	A9B8985B8,9GH5H98.FIGH;F99A9BH5ACB;'CAA9F7=5@.FIGH\$'CF;5B<5G95B? (5H=CB5@GGC7=5H=CB<5G95B?/-(5H=CB5@GGC7=5H=CB5B8.<98A=B=GHF5H=J9.FIGH99G(5A98 "9F9=B85H98'5F7<=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHG+I5FH9F@M ,9DCFHCB CFA+:=@98K=H<H<9-CB'5M

.56@9C:CBH9BHG

• @C5H=B;,5H9\$IB=CF-I6CF8=B5H98(CH98I9=B7CFDCF5H986MF9:9F9B79HCL<=6=H
  HCH<9 ,9;=GHF5BHG+I5FH9F@M,9DCFHCB CFA?+:=@98K=H<H<9-CB'5M
• 15FF5BH;F99A9BH85H98\$IB969HK99B#'CAA9F7=5@.FIGHCFDCF5H=CB5B8A9F=75B -HC7?.F5BG:9F.FIGHCAD5BM&&=B7CFDCF5H986MF9:9F9B79HCL<=6=H
  HCH<9,9;=GHF5BHG ,9;=GHF5H=CB-H5H9A9BHCB CFA-?:=@98K=H<H<9-CB\$IB9
• =FGHA9B8A9BHHC15FF5BH;F99A9BH85H98(CJ9A69F69HK99B#'CAA9F7=5@.FIGH CFDCF5H=CB5B8A9F=75B-HC7?.F5BG:9F.FIGHCAD5BM&&=B7CFDCF5H986MF9:9F9B79HCL<=6=H HCH<9,9;=GHF5BHVG+I5FH9F@M,9DCFHCB CFA?+:=@98K=H<H<9-CB(CJ9A69F
• CFAC:15FF5BH9FH=:=75H9=B7CFDCF5H986MF9:9F9B79HCL<=6=H
  HCH<9,9;=GHF5BHVG,9;=GHF5H=CB -H5H9A9BHCB CFA-?:=@98K=H<H<9-CB\$IB9
• EI=HM#B79BH=J9*@5B=B7CFDCF5H986MF9:9F9B79HCBB9LHCH<9,9;=GHF5BHG9:=B=H=J9*FCLM -H5H9A9BHF9@5H98HC=HG5BBI5@A99H=B;C:GHC7?<C@89FG5G:=@98K=H<H<9-CBDF=@
• A9B8985B8,9GH5H98L97IH=J9AD@CMA9BHCBHF57HK=H<5FFM(
  9F@=B85H98I;IGH =B7CFDCF5H986MF9:9F9B79HCL<=6=H
  HCH<9,9;=GHF5BHGIFF9BH,9DCFHCB CFA?%:=@98K=H<H<9 -CBI;IGH
  • '5GH9F-9FJ=79G;F99A9BH85H98'5F7<6M5B85ACB;*'CAA9F7=5@.FIGH79FH5=BC:=HG GI6G=8=5F=9G5B8#'-9FJ=79*FCJ=89F&&=B7CFDCF5H986MF9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHG IFF9BH,9DCFHCB CFA?%:=@98K=H<H<9-CB'5F7<
  • -9FJ=79;F99A9BH85H985GC:I;IGH6M5B85ACB;#'CAA9F7=5@.FIGHCFDCF5H=CB5B8 #'-9FJ=79*FCJ=89F&&IB89FH<9'5GH9F-9FJ=79G;F99A9BH85H98'5F7<6M5B85ACB; *'CAA9F7=5@.FIGH79FH5=BC:=HGGI6G=8=5F=9G5B8#'-9FJ=79*FCJ=89F&&=B7CFDCF5H986M F9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHG+I5FH9F@M,9DCFHCB CFA?+:=@98K=H<H<9-CB I;IGH
  • CFAC:#B89AB=:=75H=CB;F99A9BH:CF8=F97HCFG5B8C::=79FGC:#'CAA9F7=5@.FIGHCFDCF5H=CB =B7CFDCF5H986MF9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHG+I5FH9F@M,9DCFHCB CFA?+:=@98K=H< H<9-CBI;IGH
  • -H5::=B;5B8,9=A6IFG9A9BH;F99A9BH85H985GC:\$5BI5FM6M5B85ACB;#'--H5::=B; &&*'CAA9F7=5@&9B8=B;&&5B8#'CAA9F7=5@.FIGHCFDCF5H=CB=B7CFDCF5H986M F9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHGBBI5@,9DCFHCB CFA?%:=@98K=H<H<9-CB'5F7<

  • BJ9GHA9BH'5B5;9A9BH;F99A9BH85H985GC:979A69F69HK99B#'/F65B*5FHB9FG&

    
    * 5B8#'#BJ9GHA9BH8J=GCFG&&=B7CFDCF5H986MF9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHG BBI5@,9DCFHCB CFA?%:=@98K=H<H<9-CB'5F7<
  • GG=;BA9BH;F99A9BH85H985GC:\$5BI5FM6M5B85ACB;#'5D=H5@&&:CFA9F@M?BCKB 5G#'#BJ9GHA9BH8J=GCFG&&#'5D=H5@CBHFC@@98CAD5BM'5B5;9A9BH&&#'5D=H5@ ,96H'5B5;9A9BH&&#'5D=H5@,95@*FCD9FHM'5B5;9A9BH&&5B8#'5D=H5@-97IF=H=9G '5B5;9A9BH&&=B7CFDCF5H986MF9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHGBBI5@,9DCFHCB CFA ?%:=@98K=H<H<9-CB'5F7<
  • -97CB8A9B8985B8,9GH5H9895@9F'5B5;9F;F99A9BH85H985GC:\$5BI5FM6M5B85ACB; #'CAA9F7=5@.FIGHCFDCF5H=CB#'-9FJ=79*FCJ=89F&&5B8)5D=H5@&&=B7CFDCF5H986M F9:9F9B79HCL<=6=H
    HCH<9,9;=GHF5BHVGBBI5@,9DCFHCB CFA?%:=@98K=H<H<9-CB'5F7<
• A9B8A9BH(C
  85H985GC:DF=@HC-97CB8A9B8985B8,9GH5H9895@9F'5B5;9F ;F99A9BH85H985GC:\$5BI5FM6M5B85ACB;#'CAA9F7=5@.FIGHCFDCF5H=CB#' -9FJ=79*FCJ=89F&&5B8)5D=H5@&&=B7CFDCF5H986MF9:9F9B79HCL<=6=H
  HCH<9 ,9;=GHF5BHVGIFF9BH,9DCFHCB CFA%:=@98K=H<H<9-CBDF=@
• -97CB8A9B8985B8,9GH5H98;F99A9BHC:&=A=H98*5FHB9FG<=DC:#'/F65B*5FHB9FG&
  *
  85H985G C:979A69F6M5B85ACB;#'/F65B*5FHB9FG!*#B7
  5B8#'/F65B,#.&& =B7CFDCF5H986MF9:9F9B79HCL<=6=H
  HCH<9,9;=GHF5BHGBBI5@,9DCFHCB CFA?%:=@98K=H<H<9 -CB'5F7<
• F98=H;F99A9BH85H985GC:)7HC69F6M5B85ACB;79FH5=BGI6G=8=5FM6CFFCK9FGC:#' CAA9F7=5@.FIGHCFDCF5H=CB\$*'CF;5B<5G95B?(

5G58A=B=GHF5H=J95;9BH5B?C:A9F=75 5GGMB8=75H=CB5;9BH5B8H<9CH<9F@9B89FGD5FHMH<9F9HC=B7CFDCF5H986MF9:9F9B79HCL<=6=H
HCH<9 ,9;=GHF5BHVG,9;=GHF5H=CB-H5H9A9BHCB CFA-?,9;
(C
:=@98K=H<H<9-CB)7HC69F
- 'C8=:=75H=CB;F99A9BH85H985GC:-9DH9A69F5ACB;79FH5=BGI6G=8=5FM6CFFCK9FGC:#' CAA9F7=5@.FIGHCFDCF5H=CB957<&9B89FD5FHMH<9F9HC5B8\$*'CF;5B<5G95B?(

5G 8A=B=GHF5H=J9;9BH=B7CFDCF5H986MF9:9F9B79HCL<=6=H
HCH<9,9;=GHF5BHVGIFF9BH,9DCFHCB CFA%:=@98K=H<H<9-CB-9DH9A69F

10.14 Lease Agreement, dated as of June 29, 2009, by and among CIM/Oakland 1 Kaiser Plaza, LP and Kaiser Foundation Health Plan, Inc, as amended by the First Amendment to Lease, dated as of June 15, 2012, as further amended by the Second Amendment to Lease, dated as of December 16, 2013, as further amended by the Third Amendment to Lease, dated as of July 8, 2015, and as further amended by the Fourth Amendment to Lease, dated as of November 18, 2015 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on Form 10-K filed with the SEC on March 16, 2020).
10.15 Equity Distribution Agreement, dated as of March 16, 2020, by and among CIM Commercial Trust Corporation, CIM Capital, LLC, CIM Service Provider, LLC and Ladenburg Thalmann & Co. Inc. (incorporated by reference to Exhibit 1.1 to the Registrant's Current Report on Form 8-K filed with the SEC on March 16, 2020).
16.1 Letter from BDO USA, LLP dated November 9, 2020 (incorporated by reference to Exhibit 16.1 to the Registrant's Current Report on Form 8-K filed with the SEC on November 9, 2020).
*21.1 Subsidiaries of the Registrant.
*23.1 Consent of Deloitte & Touche, LLP.
*23.2 Consent of BDO USA, LLP.
*24.1 Powers of Attorney (included on signature page).
*31.1 Section 302 Officer Certification-Chief Executive Officer.
*31.2 Section 302 Officer Certification-Chief Financial Officer.
*32.1 Section 906 Officer Certification-Chief Executive Officer.
*32.2 Section 906 Officer Certification-Chief Financial Officer.

* Filed herewith.

• Management contract or compensatory plan

(b) Exhibits

The exhibits listed in Item 15(a) are incorporated by reference or attached hereto.

Excluded Financial Statements (c)

None.

Item 16. Form 10-K Summary

None.

(#)*'(

*IFGI5BHHCH<9F9EI=F9A9BHGC:-97H=CBCF8C:H<9-97IF=H=9GL7<5B;97HC:H<9F9;=GHF5BH<5G8I@M 75IG98H<=GF9DCFHHC69G=;B98CB=HG69<5@:6MH<9IB89FG=;B98H<9F9IBHC8I@M5IH<CF=N98

#'CAA9F7=5@.FIGHCFDCF5H=CB

5H98 '5F7< M G0#.")'*-)(

5J=8.<CADGCB

/0,-?,*<;0=,--0*,9

5H98 '5F7< M G(."(
%, (5H<5B
957?9F

/0,-05(5*0(3--0*,9

%\$,'(\$))\$'#.

%()1&&*,-)(-3."-*,-(.-H<5H957<D9FGCBK<CG9G=;B5HIF95DD95FG69@CK7CBGH=HIH9G5B8 5DDC=BHG5J=8.<CADGCB5B8(5H<5B
957?9F5B8957<C:H<9AG9J9F5@@M<=GHFI95B8@5K:I@5HHCFB9M?=B?:57HK=H<DCK9F C:GI6GH=HIH=CB5B8F9GI6GH=HIH=CBHCG=;B=B<=GB5A9D@5795B8GH958=B5BM5B85@@75D57=H=9GHC8C5BM5B85@@H<=B;G5B8 9L97IH95BM5B85@@=BGHFIA9BHGH<5HGI7<5HHCFB9MA5M899AB979GG5FMCF58J=G56@9IB89FH<9-97IF=H=9GL7<5B;97HC: 5B85BMFI@9GF9;I@5H=CBG5B8F9EI=F9A9BHGC:H<9/
-97IF=H=9G5B8L7<5B;9CAA=GG=CB=B7CBB97H=CBK=H<H<=GBBI5@ ,9DCFHCB CFA?%5B85BM5B85@@5A9B8A9BHG<9F9HC5G:I@@M:CF5@@=BH9BHG5B8DIFDCG9G5G<9A=;<HCF7CI@88C=B D9FGCB5B8<9F96MF5H=:=9G5B87CB:=FAG5@@G5=85HHCFB9MG?=B?:57H5B85;9BHG957<57H=B;5@CB95B8<=GGI6GH=HIH9CFGI6GH=HIH9G A5M@5K:I@@M8CCF75IG9HC698CB96MJ=FHI9<9F9C:

*IFGI5BHHCH<9F9EI=F9A9BHGC:H<9-97IF=H=9GL7<5B;97HC:H<=GF9DCFH<5G699BG=;B986MH<9:C@@CK=B; D9FGCBGCB69<5@:C:H<9F9;=GHF5BH5B8=BH<975D57=H=9G5B8CBH<985H9G=B8=75H98

(86=0CDA4	)8C;4	0C4
G5J=8.<CADGCB	<=9:L97IH=J9)::=79F*F=B7=D5@L97IH=J9	'5F7<
5J=8.<CADGCB	)::=79F
G(5H<5B 957?9F	<=9: =B5B7=5@)::=79F*F=B7=D5@ =B5B7=5@	'5F7<
(5H<5B 957?9F	)::=79F5B8*F=B7=D5@77CIBH=B;)::=79F
GCI;@5G97<	=F97HCF	'5F7<
CI;@5G97<
G'5F7=9& 8K5F8G	=F97HCF	'5F7<
'5F7=9& 8K5F8G
G%9@@MDD=7<	=F97HCF	'5F7<
%9@@MDD=7<
G F5B?!C@5M	=F97HCF	'5F7<
F5B?!C@5M
G-<5I@%I65	=F97HCF	'5F7<
-<5I@%I65
G,=7<5F8,9GG@9F	=F97HCF	'5F7<
,=7<5F8,9GG@9F
GJF5<5A-<9A9G<	=F97HCF	'5F7<
JF5<5A-<9A9G<

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTS

Financial Statements	Page Number
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2020 and 2019	F-5
Consolidated Statements of Operations for the Years Ended December 31, 2020, 2019 and 2018	F-6
Consolidated Statements of Comprehensive (Loss) Income for the Years Ended December 31, 2020, 2019 and 2018	F-7
Consolidated Statements of Equity for the Years Ended December 31, 2020, 2019 and 2018	F-8
Consolidated Statements of Cash Flows for the Years Ended December 31, 2020, 2019 and 2018	F-11
Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018	F-13
Schedule III-Real Estate and Accumulated Depreciation	E={1
Schedule IV-Mortgage Loans on Real Estate	F-53

'%\$')\$#%##)'()'%*!\$*#)#'"

.CH<9G<5F9<C@89FG5B8H<9C5F8C:=F97HCFGC:#'CAA9F7=5@.FIGHCFDCF5H=CB

\$?8=8>=>=C748=0=280;(C0C4<4=CB

19<5J95I8=H98H<9577CAD5BM=B;7CBGC@=85H9865@5B79G<99HGC:#'CAA9F7=5@.FIGHCFDCF5H=CBH<9-CAD5BM-5GC: 979A69FH<9F9@5H987CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG5B87CADF9<9BG=J9@CGG=B7CA99EI=HM5B875G<:@CKG :CFH<9M95F9B898979A69F5B8H<9F9@5H98BCH9G5B8G7<98I@9G7C@@97H=J9@MF9:9FF98HC5GH<9-:=B5B7=5@ GH5H9A9BHG-#BCIFCD=B=CBH<9:=B5B7=5@GH5H9A9BHGDF9G9BH:5=F@M=B5@@A5H9F=5@F9GD97HGH<9:=B5B7=5@DCG=H=CBC:H<9 CAD5BM5GC:979A69F5B8H<9F9GI@HGC:=HGCD9F5H=CBG5B8=HG75G<:@CKG:CFH<9D9F=C89B898979A69F =B7CB:CFA=HMK=H<577CIBH=B;DF=B7=D@9G;9B9F5@@M5779DH98=BH<9/B=H98-H5H9GC:A9F=75

19<5J95@GC5I8=H98=B577CF85B79K=H<H<9GH5B85F8GC:H<9*I6@=7CAD5BM77CIBH=B;)J9FG=;<HC5F8/B=H98-H5H9G *)H<9CAD5BMG=BH9FB5@7CBHFC@CJ9F:=B5B7=5@F9DCFH=B;5GC:979A69F65G98CB7F=H9F=59GH56@=G<98=B 5;,95(365;963C5;,.9(;,+9(4,>692 =GGI986MH<9CAA=HH99C:-DCBGCF=B;)F;5B=N5H=CBGC:H<9.F958K5M CAA=GG=CB5B8CIFF9DCFH85H98'5F7<9LDF9GG985BIBEI5@=:=98CD=B=CBCBH<9CAD5BMVG=BH9FB5@7CBHFC@CJ9F :=B5B7=5@F9DCFH=B;

0B8B5>A\$?8=8>=

.<9G9:=B5B7=5@GH5H9A9BHG5F9H<9F9GDCBG=6=@=HMC:H<9CAD5BMGA5B5;9A9BH
)IFF9GDCBG=6=@=HM=GHC9LDF9GG5BCD=B=CBCB H<9CAD5BMG:=B5B7=5@GH5H9A9BHG65G98CBCIF5I8=HG
195F95DI6@=7577CIBH=B;:=FAF9;=GH9F98K=H<H<9*)5B85F9 F9EI=F98HC69=B89D9B89BHK=H<F9GD97HHCH<9CAD5BM=B577CF85B79K=H<H<9/
:989F5@G97IF=H=9G@5KG5B8H<95DD@=756@9 FI@9G5B8F9;I@5H=CBGC:H<9-97IF=H=9G5B8L7<5B;9CAA=GG=CB5B8H<9*)

197CB8I7H98CIF5I8=HG=B577CF85B79K=H<H<9GH5B85F8GC:H<9*)
.<CG9GH5B85F8GF9EI=F9H<5HK9D@5B5B8D9F:CFAH<9 5I8=HHCC6H5=BF95GCB56@95GGIF5B7956CIHK<9H<9FH<9:=B5B7=5@GH5H9A9BHG5F9:F99C:A5H9F=5@A=GGH5H9A9BHK<9H<9F8I9HC 9FFCFCF:F5I8
)IF5I8=HG=B7@I898D9F:CFA=B;DFC798IF9GHC5GG9GGH<9F=G?GC:A5H9F=5@A=GGH5H9A9BHC:H<9:=B5B7=5@ GH5H9A9BHGK<9H<9F8I9HC9FFCFCF:F5I85B8D9F:CFA=B;DFC798IF9GH<5HF9GDCB8HCH<CG9F=G?G
-I7<DFC798IF9G=B7@I898 9L5A=B=B;CB5H9GH65G=G9J=89B79F9;5F8=B;H<95ACIBHG5B88=G7@CGIF9G=BH<9:=B5B7=5@GH5H9A9BHG
)IF5I8=HG5@GC=B7@I898 9J5@I5H=B;H<9577CIBH=B;DF=B7=D@9GIG985B8G=;B=:=75BH9GH=A5H9GA5896MA5B5;9A9BH5GK9@@5G9J5@I5H=B;H<9CJ9F5@@ DF9G9BH5H=CBC:H<9:=B5B7=5@GH5H9A9BHG
1969@=9J9H<5HCIF5I8=HGDFCJ=895F95GCB56@965G=G:CFCIFCD=B=CB

A8C820;D38C"0CC4A

.<97F=H=75@5I8=HA5HH9F7CAAIB=75H9869@CK=G5A5HH9F5F=G=B;:FCAH<97IFF9BH?D9F=C85I8=HC:H<9:=B5B7=5@GH5H9A9BHGH<5H K5G7CAAIB=75H98CFF9EI=F98HC697CAAIB=75H98HCH<9I8=HCAA=HH995B8H<5HF9@5H9GHC577CIBHGCF8=G7@CGIF9GH<5H 5F9A5H9F=5@HCH9:=B5B7=5@GH5H9A9BHG5B8=BJC@J98CIF9GD97=5@@M7amp#53;amp#64;amp#64;amp#57;amp#66;amp#59;amp#61;amp#66;amp#59;amp#71;amp#73;amp#54;97H=J9CF7CAD@9LI8;A9BHG
.<9 7CAAIB=75H=CBC:7F=H=75@5I8=HA5HH9FG8C9GBCH5@H9F=B5BMK5MCIFCD=B=CBCBH<9:=B5B7=5@GH5H9A9BHGH5?9B5G5K<C@95B8 K95F9BCH6M7CAAIB=75H=B;H<97F=H=75@5I8=HA5HH9F69@CKDFCJ=8=B;5G9D5F5H9CD=B=CBCBH<97F=H=75@5I8=HA5HH9FCFCBH<9 577CIBHGCF8=G7@CGIF9GHCK<=7<=HF9@5H9G

**=E4BC<4=CB8='40;BC0C4JE0;D0C8>=>5<?08A<4=C=3820C>AB0=3*=38B2>D=C430B7;>FBJ'454AC>#>C4

C> C742>=B>;830C4358=0=280;BC0C4<4=CB**

90;0*(3<+0;(;;,9,:*907;065

.<9CAD5BMVG9J5@I5H=CBC:=BJ9GHA9BHG=BF95@9GH5H9:CF=AD5=FA9BH=BJC@J9G5B=B=H=5@5GG9GGA9BHC:957<F95@9GH5H95GG9HHC 89H9FA=B9K<9H<9F9J9BHGCF7<5B;9G=B7=F7IAGH5B79G9L=GHH<5HA5M=B8=75H9H<5HH<975FFM=B;5ACIBHGC:957<=BJ9GHA9BH=B F95@9GH5H9=GBC@CB;9FF97CJ9F56@9
*CGG=6@9=B8=75H=CBGC:=AD5=FA9BHA5M=B7@I897<5B;9G=BF95@9GH5H9A5F?9H7CB8=H=CBG DFCD9FHMD9F:CFA5B79C77ID5B7M,9J*,,5B8588=H=CB5@DFCD9FHMJ5@I5H=CB5GGIADH=CBG=B7@I8=B;8=G7CIBH5B8 H9FA=B5@75D=H5@=N5H=CBF5H9G
1<9B9J9BHGCF7<5B;9G=B7=F7IAGH5B79G9L=GHH<9CAD5BM9J5@I5H9G=HG=BJ9GHA9BH=BF95@ 9GH5H9:CF=AD5=FA9BH6M7CAD5F=B;IB8=G7CIBH98:IHIF975G<:@CKG9LD97H98HC69;9B9F5H98CJ9FH<9@=:9C:957<5GG9HHCH<9 F9GD97H=J975FFM=B;5ACIBH

:H<975FFM=B;5ACIBHC:5B5GG9H9L7998GH<9IB8=G7CIBH98:IHIF975G<:@CKG5B5B5@MG=G=G D9F:CFA98HC89H9FA=B9H<9:5=FJ5@I9C:H<95GG9H

.<9CAD5BMA5?9GG=;B=:=75BH5GGIADH=CBGHC9J5@I5H9=BJ9GHA9BHG=BF95@9GH5H9:CFDCGG=6@9=B8=75H=CBGC:=AD5=FA9BH <5B;9G=BH<9G95GGIADH=CBG7CI@8<5J95G=;B=:=75BH=AD57HCBH<9=BJ9GHA9BH=BF95@9GH5H9=89BH=:=98:CF:IFH<9F5B5@MG=G
CF H<CG9=BJ9GHA9BHG=BF95@9GH5H9K<9F9=B8=75H=CBGC:=AD5=FA9BH<5J9699B=89BH=:=98H<9CAD5BMA5?9GG=;B=:=75BH9GH=A5H9G 5B85GGIADH=CBGHC89H9FA=B9K<9H<9FH<9IB8=G7CIBH98:IHIF975G<:@CKG9LD97H98HC69;9B9F5H98CJ9FH<9@=:9C:H<95GG9H 9L7998H<975FFM=B;5ACIBHC:H<9=BJ9GHA9BH=BF95@9GH5H9
'5B5;9A9BH7CB7@I898H<5HH<975FFM=B;J5@I9C:H<95GG9HG K9F9

.56@9C:CBH9BHG

F97CJ9F56@95B8H<9F9:CF9K9F9BCHGI6>97H98HC58=G7CIBH9875G<:@CK5B5@MG=G
GH=A5H9G5B85GGIADH=CBGIG98:CFH<9 IB8=G7CIBH98:IHIF975G<:@CKGC:H<9C::=79DFCD9FHM=B7@I89F9BH5@F5H9G@95G9?IDD9F=C8;FCKH<F5H9G<C@8D9F=C85B8 H9FA=B5@75D=H5@=N5H=CBF5H9G
GH=A5H9G5B85GGIADH=CBGIG98:CFH<9IB8=G7CIBH98:IHIF975G<:@CKGC:H<9<CH9@DFCD9FHM =B7@I89C77ID5B7M,9J*,,;FCKH<F5H9G<C@8D9F=C85B8H9FA=B5@75D=H5@=N5H=CBF5H9G

19=89BH=:=98H<989H9FA=B5H=CBC:=AD5=FA9BH=B8=75HCFG:CF=BJ9GHA9BHG=BF95@9GH5H95B879FH5=B5GGIADH=CBGIG98:CFH<9 IB8=G7CIBH98:IHIF975G<:@CKGC:H<9DFCD9FH=9G5G57F=H=75@5I8=HA5HH9F6975IG9C:H<9G=;B=:=75BH5GGIADH=CBG A5B5;9A9BHA5?9GK<9B89H9FA=B=B;K<9H<9F9J9BHGCF7<5B;9G=B7=F7IAGH5B79G<5J9C77IFF98=B8=75H=B;H<5HH<975FFM=B; 5ACIBHGC:=BJ9GHA9BHG=BF95@9GH5H95GG9HGA5MBCH69F97CJ9F56@95B8:CFH<CG9=BJ9GHA9BHG=BF95@9GH5H9K<9F9 =B8=75H=CBGC:=AD5=FA9BH<5J9699B=89BH=:=98H<9G=;B=:=75BH9GH=A5H9G5B85GGIADH=CBGA5B5;9A9BHA5?9GHC9J5@I5H9 K<9H<9FH<9IB8=G7CIBH98:IHIF975G<:@CKG9LD97H98HC69;9B9F5H98CJ9FH<9@=:9C:H<95GG9H9L7998H<975FFM=B;5ACIBHC:H<9 DFCD9FHM=B7@I8=B;H<CG9F9@5H98HCF9BH5@F5H9G@95G9?IDD9F=C8;FCKH<F5H9G<C@8D9F=C8C77ID5B7M,9J*,,5B8 H9FA=B5@75D=H5@=N5H=CBF5H9G
.<=GF9EI=F985<=;<89;F99C:5I8=HCF>I8;A9BH5B85B=B7F95G989LH9BHC:9::CFH=B7@I8=B;H<9 B998HC=BJC@J9CIF:5=FJ5@I9GD97=5@=GHGK<9BD9F:CFA=B;5I8=HDFC798IF9GHC9J5@I5H9K<9H<9FA5B5;9A9BH5DDFCDF=5H9@M =89BH=:=98=AD5=FA9BH=B8=75HCFG5B8H<9F95GCB56@9B9GGC:A5B5;9A9BHVG5GGIADH=CBGF9@5H98HCF9BH5@F5H9G@95G9?ID D9F=C8;FCKH<F5H9G<C@8D9F=C8C77ID5B7M,9J*,,5B8H9FA=B5@75D=H5@=N5H=CBF5H9G:CFH<9IB8=G7CIBH98:IHIF975G< :@CKG5B5@MG=G

6>;/,90;0*(3<+0;(;;,9'(:++9,::,+05;/,<+0;

• B 19H9GH98H<99::97H=J9B9GGC:7CBHFC@GCJ9FA5B5;9A9BHVG=89BH=:=75H=CBC:DCGG=6@97=F7IAGH5B79GH<5HA5M =B8=75H9H<5HH<975FFM=B;5ACIBHGC:=BJ9GHA9BHG=BF95@9GH5H95F9BC@CB;9FF97CJ9F56@95B8H<9IB8=G7CIBH9875G< :@CKG=B7@I8=B;F9J=9KC:H<9IB89F@M=B;=BDIHG
• P 199J5@I5H98H<9577IF57M5B8F9@9J5B79C::57HCFGIH=@=N98=BH<9CAD5BMVGEI5@=H5H=J95GG9GGA9BH:CF5G5AD@9C: DFCD9FH=9G
• P 19D9F:CFA987CFFC6CF5H=B;=BEI=F=9GK=H<A5B5;9A9BH=B7@I8=B;DFCD9FHM577CIBH=B;@95G=B;5B8DCFH:C@=C CJ9FG=;<HHC89H9FA=B9K<9H<9F:57HCFGK9F9=89BH=:=98=BH<97IFF9BHD9F=C8H<5HA5M695B=AD5=FA9BH=B8=75HCFCF K<9H<9F:57HCFGK9F9=89BH=:=98=BH<97IFF9BHD9F=C8H<5HA5MF9GI@H=B57<5B;9HC5GGIADH=CBGIG98=BH<9 IB8=G7CIBH9875G<:@CKAC89@G
• P 199J5@I5H98K<9H<9FH<95GGIADH=CBGIG98=BH<9CAD5BMVGIB8=G7CIBH98AC89@F9@5H=B;HCF9BH5@F5H9G@95G9?ID D9F=C8;FCKH<F5H9G<C@8D9F=C8C77ID5B7M,9J*,,5B8H9FA=B5@75D=H5@=N5H=CBF5H9GK9F97CBG=GH9BHK=H< 9J=89B79C6H5=B98=BCH<9F5F95GC:H<95I8=H
• P 1=H<H<95GG=GH5B79C:CIF:5=FJ5@I9GD97=5@=GHGK99J5@I5H98H<9IB8=G7CIBH9875G<:@CK5B5@MG=G=B7@I8=B;H<9<CH9@ 5GG9H9GH=A5H9GC:C77ID5B7M,9J*,,5B8H9FA=B5@75D=H5@=N5H=CBF5H9G6M9J5@I5H=B;H<9GCIF79C: =B:CFA5H=CB5B85GGIADH=CBGIG986MA5B5;9A9BH5B8H9GH=B;H<9A5H<9A5H=75@577IF57MC:H<9IB8=G7CIBH9875G< :@CK5B5@MG=G
• P 199J5@I5H98H<9F95GCB56@9B9GGC:A5B5;9A9BHVGIB8=G7CIBH9875G<:@CK5B5@MG=G6M7CAD5F=B;A5B5;9A9BHVG DFC>97H=CBGHCH<9CAD5BMVG<=GHCF=75@F9GI@HG5B89LH9FB5@A5F?9HGCIF79G

G9@C=HH9.CI7<9&&*

&CGB;9@9G '5F7<

.56@9C:CBH9BHG

'4?>AC>5=34?4=34=C'468BC4A43%D1;8222>D=C8=68A<

-<5F9<C@89FG5B8C5F8C:=F97HCFG #'CAA9F7=5@.FIGHCFDCF5H=CB 5@@5G.9L5G

\$?8=8>=>=C74>=B>;830C438=0=280;(C0C4<4=CB

19<5J95I8=H98H<9577CAD5BM=B;7CBGC@=85H9865@5B79G<99HC:#'CAA9F7=5@.FIGHCFDCF5H=CB5B8GI6G=8=5F=9GH<9 TCAD5BMU5GC:979A69FH<9F9@5H987CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG5B87CADF9<9BG=J9=B7CA99EI=HM 5B875G<:@CKG:CF957<C:H<9HKCM95FG=BH<9D9F=C89B898979A69F5B8H<9F9@5H98BCH9G5B8G7<98I@9G 7C@@97H=J9@MF9:9FF98HC5GH<9T7CBGC@=85H98:=B5B7=5@GH5H9A9BHGU

BCIFCD=B=CBH<97CBGC@=85H98:=B5B7=5@GH5H9A9BHGDF9G9BH :5=F@M=B5@@A5H9F=5@F9GD97HGH<9:=B5B7=5@DCG=H=CBC:H<9CAD5BM5H979A69F5B8H<9F9GI@HGC:=HGCD9F5H=CBG5B8 =HG75G<:@CKG:CF957<C:H<9HKCM95FG=BH<9D9F=C89B898979A69F=B7CB:CFA=HMK=H<577CIBH=B;DF=B7=D@9G ;9B9F5@@M5779DH98=BH<9/B=H98-H5H9GC:A9F=75

0B8B5>A\$?8=8>=

.<9G97CBGC@=85H98:=B5B7=5@GH5H9A9BHG5F9H<9F9GDCBG=6=@=HMC:H<9CAD5BMVGA5B5;9A9BH
)IFF9GDCBG=6=@=HM=GHC9LDF9GG 5BCD=B=CBCBH<9CAD5BMVG7CBGC@=85H98:=B5B7=5@GH5H9A9BHG65G98CBCIF5I8=HG
195F95DI6@=7577CIBH=B;:=FAF9;=GH9F98 K=H<H<9*)5B85F9F9EI=F98HC69=B89D9B89BHK=H<F9GD97HHCH<9CAD5BM=B577CF85B79K=H<H<9/
:989F5@G97IF=H=9G @5KG5B8H<95DD@=756@9FI@9G5B8F9;I@5H=CBGC:H<9-97IF=H=9G5B8L7<5B;9CAA=GG=CB5B8H<9*)

197CB8I7H98CIF5I8=HG=B577CF85B79K=H<H<9GH5B85F8GC:H<9*)
.<CG9GH5B85F8GF9EI=F9H<5HK9D@5B5B8D9F:CFAH<9 5I8=HHCC6H5=BF95GCB56@95GGIF5B7956CIHK<9H<9FH<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG5F9:F99C:A5H9F=5@A=GGH5H9A9BH K<9H<9F8I9HC9FFCFCF:F5I8

)IF5I8=HG=B7@I898D9F:CFA=B;DFC798IF9GHC5GG9GGH<9F=G?GC:A5H9F=5@A=GGH5H9A9BHC:H<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG K<9H<9F8I9HC9FFCFCF:F5I85B8D9F:CFA=B;DFC798IF9GH<5HF9GDCB8HCH<CG9F=G?G
-I7<DFC798IF9G=B7@I8989L5A=B=B;CB5 H9GH65G=G9J=89B79F9;5F8=B;H<95ACIBHG5B88=G7@CGIF9G=BH<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG
)IF5I8=HG5@GC=B7@I898 9J5@I5H=B;H<9577CIBH=B;DF=B7=D@9GIG985B8G=;B=:=75BH9GH=A5H9GA5896MA5B5;9A9BH5GK9@@5G9J5@I5H=B;H<9CJ9F5@@ DF9G9BH5H=CBC:H<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG
1969@=9J9H<5HCIF5I8=HGDFCJ=895F95GCB56@965G=G:CFCIFCD=B=CB

G)/-&&*

19G9FJ985GH<9CAD5BMVG5I8=HCF:FCAHC

&CGB;9@9G5@=:CFB=5 '5F7<

"\$""'!)'*()\$'%\$')\$##(*('( >=B>;830C430;0=24(744CB =C7>DB0=3B4G24?CB70A40=3?4AB70A40<>D=CB

	424<14A
(()(
#BJ9GHA9BHG=BF95@9GH5H9B9H
5G<5B875G<9EI=J5@9BHG
,9GHF=7H9875G<
&C5BGF979=J56@9B9H
77CIBHGF979=J56@9B9H
9:9FF98F9BHF979=J56@95B87<5F;9GB9H
)H<9F=BH5B;=6@95GG9HGB9H
&C5BG9FJ=7=B;5GG9HB9H5B8CH<9F5GG9HG
.).&--.-
!!)('"!%'''()\$ #&*).
&##&#.#-
96HB9H
77CIBHGD5M56@95B8577FI989LD9BG9G
#BH5B;=6@9@=56=@=H=9GB9H
I9HCF9@5H98D5FH=9G
)H<9F@=56=@=H=9G
.CH5@@=56=@=H=9G
)''#.'(.-()(.#(!(#-(CH9
,'&*, ,,-.)%-9F=9G7IAI@5H=J9F9899A56@9DF9:9FF98GHC7? D5FJ5@I9G<5F9G5IH<CF=N985B8G<5F9G=GGI98 5B8CIHGH5B8=B;F9GD97H=J9@M5GC:979A69F5B85B8 G<5F9G=GGI985B8CIHGH5B8=B;F9GD97H=J9@M5GC:979A69F@=EI=85H=CB DF9:9F9B79C: D9FG<5F9GI6>97HHC58>IGHA9BH
+/#.3
-9F=9G7IAI@5H=J9F9899A56@9DF9:9FF98GHC7? D5FJ5@I9G<5F9G 5IH<CF=N985B8G<5F9G=GGI985B8CIHGH5B8=B;F9GD97H=J9@M5GC: 979A69F5B85B8G<5F9G=GGI985B8CIHGH5B8=B; F9GD97H=J9@M5GC:979A69F@=EI=85H=CBDF9:9F9B79C: D9FG<5F9 GI6>97HHC58>IGHA9BH
-9F=9G7IAI@5H=J9F9899A56@9DF9:9FF98GHC7? D5FJ5@I9G<5F9G 5IH<CF=N98G<5F9G=GGI985B8CIHGH5B8=B;5GC:979A69F5B8BC G<5F9G=GGI985B8CIHGH5B8=B;5GC:979A69F@=EI=85H=CBDF9:9F9B79C: D9FG<5F9GI6>97HHC58>IGHA9BH			S
-9F=9G&7IAI@5H=J9F9899A56@9DF9:9FF98GHC7? D5FJ5@I9G<5F9G 5IH<CF=N985B8G<5F9G=GGI985B8CIHGH5B8=B;F9GD97H=J9@M5GC: 979A69F5B85B8G<5F9G=GGI985B8CIHGH5B8=B;5GC: 979A69F@=EI=85H=CBDF9:9F9B79C: D9FG<5F9GI6>97HHC58>IGHA9BH
CAACBGHC7? D5FJ5@I9G<5F9G5IH<CF=N985B8 G<5F9G=GGI985B8CIHGH5B8=B;5GC:979A69F5B8979A69F F9GD97H=J9@M
88=H=CB5@D5=8?=B75D=H5@
=GHF=6IH=CBG=B9L79GGC:95FB=B;G
.CH5@GHC7?<C@89FGV9EI=HM
(CB7CBHFC@@=B;=BH9F9GHG
.CH5@9EI=HM
.).&&##&#.#-,'&*, ,,-.)%(+/#.3

.<9577CAD5BM=B;BCH9G5F95B=BH9;F5@D5FHC:H<9G97CBGC@=85H98:=B5B7=5@GH5H9A9BHG

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, excent ner share amounts)

	Year Ended December 31.
		2020		2019		2018
REVENUES:
Rental and other property income	S	54,823	S	88,331	S	147,095
Hotel income		11,882		35,633		35,672
Interest and other income		10,503		16,025		14,703
Total Revenues		77,208		139,989		197,470
EXPENSES:
Rental and other property operating		37,544		62,928		79,917
Asset management and other fees to related parties		9,793		13,121		18.959
Expense reimbursements to related parties-corporate		2,243		2,800		3,047
Expense reimbursements to related parties-lending segment		3,491		2,382		2,445
Interest		11,415		12,175		26,894
General and administrative		6,772		6,354		9,167
Transaction costs				574		938
Depreciation and amortization		21,406		27,374		53,228
Loss on early extinguishment of debt (Note 6)		281		29,982		808
Impairment of real estate (Note 3)				69,000
		92.945		226,690		195,403
Gain on sale of real estate (Note 3)				433,104
(LOSS) INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES		(15,737)		346,403		2,067
(Benefit) provision for income taxes		(722)		882		તે જેટર
NET (LOSS) INCOME		(15,015)		345,521		1,142
Net (income) loss attributable to noncontrolling interests		(1)		152		(21)
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY		(15,016)		345,673		1,121
Redeemable preferred stock dividends declared or accumulated (Note 9)		(18,002)		(17,095)		(15,423)
Redeemable preferred stock deemed dividends (Note 9)		(377)
Redeemable preferred stock redemptions (Note 9)		(72)		(5,882)		4
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS	ക	(33,467)	S	322,696	ਦਿੱ	(14,298)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: (1)
Basic	ക	(2.27)	ಕಾ	22.11	S	(0.98)
Diluted	સ્ત્ર	(2.27)	ಕೆ	19.74	સ્ત્ર	(0.98)
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: (1)
Basic		14,748		14,598		14,597
Diluted		14,748		16,493		14,597

(1) our common stock effected on September 3, 2019.

The accompanying notes are an integral part of these consolidated financial statements.

"\$""'!)'*()\$'%\$')\$##(*('( >=B>;830C43(C0C4<4=CB>5><?A474=B8E4!>BB=2><4 =C7>DB0=3B

	.40A=343424<14A
(.&)--#()'
)H<9F7CADF9<9BG=J9@CGG=B7CA975G<:@CK<98;9G		S
)'*,"(-#0&)--#()'
CADF9<9BG=J9=B7CA9@CGG5HHF=6IH56@9HCBCB7CBHFC@@=B;=BH9F9GHG
)',"(-#0&)--#()',#/.&.)." )'(3

.<9577CAD5BM=B;BCH9G5F95B=BH9;F5@D5FHC:H<9G97CBGC@=85H98:=B5B7=5@GH5H9A9BHG

"\$""'!)'*()\$'%\$')\$##(*('( >=B>;830C43(C0C4<4=CB>5@D8CH =C7>DB0=3B4G24?CB70A40=3?4AB70A40<>D=CB

	.40AB=343424<14A? ?0=3
	><<>=(C>2:		%A454AA43(C>2:			22D<D;0C43
					338C8>=0;	\$C74A	8BCA81DC8>=B	)>C0;	#>=
		%0A		%0A	%0838=	><?A474=B8E4	8=G24BB	(C>2:7>;34ABN	2>=CA>;;8=6	)>C0;
	(70A4B	+0;D4	(70A4B	+0;D4	0?8C0;	=2><4	>50A=8=6B	@D8CH	=C4A4BCB	@D8CH
0;0=24B424<14A
=GHF=6IH=CBGHC BCB7CBHFC@@=B; =BH9F9GHG	S	S	S	S	S	S	S	S
-HC7??65G98 7CAD9BG5H=CB 9LD9BG9		S	S	S		S	S		S
CAACB8=J=89B8G D9FG<5F9	S	S	S	S	S	S			S
#GGI5B79C:-9F=9G *F9:9FF9815FF5BHG	S	S	S	S		S	S		S
=J=89B8GHC<C@89FGC: -9F=9G*F9:9FF98 -HC7? D9F G<5F9	S	S	S	S	S	S			S
=J=89B8GHC<C@89FGC: -9F=9G&*F9:9FF98 -HC7? D9F G<5F9	S	S	S	S	S	S			S
,97@5GG=:=75H=CBC: -9F=9G*F9:9FF98 -HC7?HCD9FA5B9BH 9EI=HM	S	S				S	S		S
,989ADH=CBC:-9F=9G *F9:9FF98-HC7?	S	S				S	S		S
)H<9F7CADF9<9BG=J9 =B7CA9	S	S	S	S	S		S		S
(9H=B7CA9	S	S	S	S	S	S
0;0=24B424<14A

@@G<5F95B8D9FG<5F95ACIBHG<5J9699B58>IGH98HC;=J9F9HFC57H=J99::97HHCH<9CB9?:CF?H<F99F9J9FG9GHC7?GD@=HC:CIF7CAACB GHC7?9::97H98CB-9DH9A69F

CBH=BI98

	.40AB=343424<14A? ?0=3
	><<>=(C>2:		%A454AA43(C>2:			22D<D;0C43
		%0A		%0A	338C8>=0; %0838=	\$C74A ><?A474=B8E4	8BCA81DC8>=B 8=G24BB	)>C0; (C>2:7>;34ABN	#>= 2>=CA>;;8=6	)>C0;
	(70A4B	+0;D4	(70A4B	+0;D4	0?8C0;	=2><4!>BB	>50A=8=6B	@D8CH	=C4A4BCB	@D8CH
0;0=24B424<14A
CBHF=6IH=CBGHC BCB7CBHFC@@=B; =BH9F9GHG	S	S	S	S	S	S	S	S
=GHF=6IH=CBGHC BCB7CBHFC@@=B; =BH9F9GHG	S	S	S	S	S	S	S	S
LH=B;I=G<A9BHC: BCB7CBHFC@@=B; =BH9F9GHG	S	S	S	S	S	S	S	S
-HC7??65G98 7CAD9BG5H=CB 9LD9BG9		S	S	S		S	S		S
,9H=F9A9BHC::F57H=CB5@ G<5F9G		S	S	S		S	S		S
<5B;9=BD5FJ5@I9	S		S	S		S	S	S	S	S
-D97=5@75G<8=J=89B8G D9FG<5F9 (CH9	S	S	S	S	S	S			S
CAACB8=J=89B8G D9FG<5F9	S	S	S	S	S	S			S
#GGI5B79C:-9F=9G *F9:9FF9815FF5BHG	S	S	S	S		S	S		S
=J=89B8GHC<C@89FGC: -9F=9G*F9:9FF98 -HC7? D9F G<5F9	S	S	S	S	S	S			S
=J=89B8GHC<C@89FGC: -9F=9G&*F9:9FF98 -HC7? D9F G<5F9	S	S	S	S	S	S			S
,9DIF7<5G9C:-9F=9G& *F9:9FF98-HC7?	S	S				S			S
,97@5GG=:=75H=CBC: -9F=9G*F9:9FF98 -HC7?HCD9FA5B9BH 9EI=HM	S	S				S	S		S
,989ADH=CBC:-9F=9G *F9:9FF98-HC7?	S	S				S			S
)H<9F7CADF9<9BG=J9 @CGG=B7CA9	S	S	S	S	S		S		S
(9H=B7CA9@CGG	S	S	S	S	S	S
0;0=24B424<14A						S

"\$""'!)'*()\$'%\$')\$##(*('( >=B>;830C43(C0C4<4=CB>5@D8CH>=C8=D43 =C7>DB0=3B4G24?CB70A40=3?4AB70A40<>D=CB

@@G<5F95B8D9FG<5F95ACIBHG<5J9699B58>IGH98HC;=J9F9HFC57H=J99::97HHCH<9CB9?:CF?H<F99F9J9FG9GHC7?GD@=HC:CIF7CAACB GHC7?9::97H98CB-9DH9A69F

CBH=BI98

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Equity (Continued) (In thousands, except share and per share amounts)

	Years Ended December 31, 2020, 2019 and 2018
	Common Stock Preferred Stock
	Shares	Par Value	Shares		Par Value		Additional Paid-in Capital	Distributions in Excess of Earnings		Total Stockholders' Equity		Non- controlling Interests	Total Equity
Balances, December 31, 2019	14,602,149	ાર A	8,224,254	S	223.467	ಕ	794,825	(740,617) ಕ	ಕೊ	277,690	S	રેીરે	278,195 ಕ
Contributions to noncontrolling interests
Distributions to noncontrolling interests												(21)	(51)
Stock-based compensation expense	21,912						222			222			222
Issuance of shares of Common Stock in exchange for asset management fees	203,349						2,359			2,359			2,359
Issuance of Series A Preferred Warrants							28			28			28
Common dividends (\$0.300 per share)								(4,431)		(4,431)			(4,431)
Dividends to holders of Series A Preferred Stock (\$1.719 per share)								(9,579)		(9,579)			(9,579)
Issuance of Series D Preferred Stock			19,145		473		(17)			456			456
Dividends to holders of Series D Preferred Stock (\$1.648 per share)								(21)		(21)			(21)
Dividends to holders of Series L Preferred Stock (\$1.560 per share)								(8,406)		(8,406)			(8,406)
Reclassification of Series A Preferred Stock to permanent equity			1,570,421		38,837		(3,354)			35,483			35,483
Redeemable Preferred Stock deemed dividends								(377)		(377)			(377)
Redemption of Series A Preferred Stock			(29,753)		(741)		64	(72)		(749)			(749)
Net (loss) income								(15,016)		(15,016)		1	(15,015)
Balances, December 31, 2020	14,827,410	ಕಾ ોર્ટ	9,784,067	ਦਿੱਤੇ	262,036	ಕ	794,127	ಕ್ಕೆ (778,519)	2	277,659	ಲ್ಲಿ	455	ಕೆ 278,114

(1) stock effected on September 3, 2019.

The accompanying notes are an integral part of these consolidated financial statements.

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands)

		Year Ended December 31,
	2020	2019	2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	ತಿ (15,015)	રિને 345,521	ਦਿੱਤੇ 1,142
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, net	21,085	26,608	52,230
Reclassification from AOCl to interest expense		(1,806)	(1,552)
Reclassification from other assets to interest expense for swap termination		1,421
Change in fair value of swaps		209	1,728
Gain on sale of real estate		(433,104)
Impairment of real estate		69,000
Loss on early extinguishment of debt	281	29,982	808
Amortization of deferred loan costs	1,192	1,133	896
Amortization of premiums and discounts on debt	(84)	(227)	(444)
Unrealized premium adjustment	1,281	1,697	2,522
Amortization of deferred costs and accretion of fees on loans receivable, net	(410)	(501)	(41)
Write-offs of uncollectible receivables	2,622	40	494
Deferred income taxes	(તેતુર)	(81)	(3)
Stock-based compensation	222	194	162
Loans funded, held for sale to secondary market	(28,131)	(29,694)	(55,655)
Proceeds from sale of guaranteed loans	25,722	40,033	54,142
Principal collected on loans subject to secured borrowings	3,695	3,613	5,698
Other operating activity	(935)	(822)	(1,587)
Changes in operating assets and liabilities:
Accounts receivable	(419)	3,197	6,692
Other assets	1,233	1,019	(4,077)
Accounts payable and accrued expenses	(1,080)	(6,326)	(365)
Deferred leasing costs	(1,838)	(1,695)	(5,773)
Other liabilities	(274)	(6,825)	2,221
Due to related parties	4,675	(1,601)	2,218
Net cash provided by operating activities	12,827	40,985	61,456
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investments in real estate	(14,731)	(24,600)	(12,055)
Acquisition of real estate	(6,131)		(112,048)
Proceeds from sale of real estate, net		941,032
Loans funded	(25,393)	(9,898)	(18,579)
Principal collected on loans	7,884	10,273	10,770
Other investing activity	51	386	178
Net cash (used in) provided by investing activities	(38,320)	917,193	(131,734)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of unsecured revolving lines of credit, revolving credit facilities, mortgages payable, term notes and principal on SBA 7(a) loan-backed notes	(57,584)	(192,987)	(186,231)
Proceeds from unsecured revolving lines of credit, revolving credit facilities and term notes	77,516	158,500	180,000
Investments in marketable securities in connection with the legal defeasance of mortgages payable		(268,194)
Prepayment penalties and other payments for early extinguishment of debt		(5,660)
Payment of principal on secured borrowings	(3,695)	(3,613)	(5,698)
Proceeds from secured borrowings			772

(Continued)

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Continued) (In thousands)

		Year Ended December 31,
		2020		2019		2018
Payment of deferred preferred stock offering costs		(943)		(1,320)		(1,136)
Payment of deferred costs		(તેકર)		(423)		(4,469)
Payment of common dividends		(4,431)		(13,141)		(21,895)
Payment of special cash dividends				(613,294)		(1,575)
Net proceeds from issuance of Series A Preferred Warrants		28		385		73
Net proceeds from issuance of Preferred Stock		41,958		37,197		35,984
Repurchase of Preferred Stock				(75,155)
Payment of preferred stock dividends		(16,536)		(22,157)		(2,173)
Redemption of Preferred Stock		(2,084)		(228)		(113)
Noncontrolling interests' distributions		(51)		(522)		(74)
Noncontrolling interests' contributions				455
Net cash provided by (used in) financing activities		33,195		(1,000,157)		(6,535)
Change in cash balances included in assets held for sale				755		(755)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH		7,702		(41,224)		(77,568)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period		35,947		77,171		154,739
End of period	ക്ക	43,649	S	35,947	ക്ക	77,171
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	ನಿ	33,636	S	23,801	S	54,659
Restricted cash		10,013		12,146		22,512
Total cash and cash equivalents and restricted cash	સ્ત્રિ	43,649	ക്കു	35,947	ക്ക	77,171
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	ക്ക	10,315	ക്ക	13,674	ക്ക	27,473
Federal income taxes paid	ਵਿਚ	273	ക്ക	1,000	ಕ್ಕಾ	622
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures, tenant improvements and real estate developments	સ્ત્રિ	267	ക്ക	5,663	ಕ್ಕಾ	11,875
Net increase in fair value of derivatives applied to other comprehensive income	ക്ക		સ્ત્રિ		ക്ക	1,727
Accrued deferred costs	ക്ക	125	ക്ക	ે રે	ക്ക	206
Accrued preferred stock offering costs	ക്ക	675	ക്ക	264	ക്ക	172
Accrual of dividends payable to preferred stockholders	ਦਿੱਤੇ	11,343	સ્ક્રિ	9,873	સ્ત્રે	14,935
Preferred stock offering costs offset against redeemable preferred stock	ക	ર્ રજૂરે ર	ക്കു	350	ಕಿತ	229
Reclassification of Series A Preferred Stock from temporary equity to permanent equity	S	35.483	S	35.649	ಲ್ಲಿ	27.887
Reclassification of loans receivable, net to real estate owned	ಕಾ	174	S	243	S
Reclassification of Series A Preferred Stock from permanent equity to accounts payable and accrued expenses	સ્ત્ર	ટર્ડ	ക്ക	20	ಕ್ಕಾ
Establishment of right-of-use asset and lease liability	S		ಕಾ	362	S
Marketable securities transferred in connection with the legal defeasance of mortgages payable	ਦਿੱਤੇ		ക	268,194	ಲ್ಲಿಕ
Mortgage notes payable legally defeased	ക്ക		ക്ക	245,000	ക്ക
Mortgage note assumed in connection with our sale of real estate	ਵਿਚ		ക്ക	28,200	ക്ക
Redeemable preferred stock deemed dividends	સ્ત્રિ	377	ക്ക		ക്ക
Accrued Redeemable Preferred Stock fees	ਵਿਚ	493	ക്ക		ਦਿੱਤੇ
Equity-based payment for management fees and base service fee	ക്ക	7,400	સ્ત્ર		ക്ക

The accompanying notes are an integral part of these consolidated financial statements.

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018

1. ORGANIZATION AND OPERATIONS

CIM Commercial Trust Corporation ("CIM Commercial" or the "Company"), a Maryland corporation and real estate investment trust ("REIT"), together with its wholly-owned subsidiaries ("we," or "our") primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). These communities are located in areas that include traditional downtown areas and suburban main streets, which barriers to entry, high population density, postive population trends and a propensity for growth. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust.

On July 8, 2013, PMC Commercial entered into a merger agreement with CIM Urban REIT, LLC ("CIM REIT"), an affiliate of CIM Group, L.P. ("CIM Group" or "CIM"), and subsidiaries of the respective parties. CIM REIT was a private commercial REIT and was the owner of CIM Urban Partners, L.P. ("CIM Urban"). The merger was completed on March 11, 2014 (the "Acquisition Date").

The Company's common stock, \$0.001 par value per share ("Common Stock"), is currently traded on the Nasdaq Global Market ("Nasdaq") under the ticker symbol "CMCT", and on the Tel Aviv Stock Exchange (the "TASE") under the ticker symbol "CMCT-L." The Company's Series L preferred stock, \$0.001 par value per share ("Series L Preferred Stock"), is currently traded on Nasdaq and on the TASE, in each case under the ticker symbol "CMCTP." We have authorized for issuance 900,000,000 shares of common stock and 100,000,000 shares of preferred stock ("Preferred Stock").

The Company filed Articles of Amendment (the "Reverse Stock Split Amendment") to effectuate a one-for-three reverse stock split of our Common Stock, effective on September 3, 2019 (the "Reverse Stock Split"). Pursuant to the Reverse Stock Split Amendment, every three shares of Common Stock issued and outstanding immediately prior to the offective time of the Reverse Stock Split were converted into one share of Common Stock, par value \$0.003 per share. In connection with the Reverse Split Amendment, the Company filed Articles of Amendment to revert the par value of the Common Stock issued and outstanding from \$0.003 per share, effective as of September 3, 2019, following the effective time of the Reverse Split Amendment. All Common Stock and per share of Common Stock amounts set forth in this Annual Report on Form 10-K have been adjusted to give retroactive effect to the Reverse Stock Split, unless otherwise stated.

The Company conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value \$0.001 per share, of the Company (collectively, the "Series A Preferred Stock") with an initial stated value of \$25.00 per share, subject to adjustment (the "Series A Preferred Stock Stated Value"), and one warrant (collectively, the "Series A Preferred Warrants") to purchase 0.25 of a share of Common Stock depending on when such Series A Preferred Warrant was issued (Note 10). Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance.

Since February 2020, we conducted a continuous public offering of our Series A Preferred Stock and Series D preferred stock, par value \$0.001 per share (the "Series D Preferred Stock"), with an initial stated value of \$25.00 per share, subject to adjustment (the "Series D Preferred Stock Stated Value"). The selling price of the Series A Preferred Stock in the offering has been, and is expected to continue to be, \$25.00 per share and the Series D Preferred Stock was \$25.00 per share for all sales that occurred from the beginning of the offering to and including June 28, 2020 and is expected to be, and since June 29, 2020, has been, \$24.50 per share through the end of the life of the offering.

CIM Commercial has qualified and intends to continue to qualify as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the "Code").

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation-The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP").

Principles of Consolidation-The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In determining whether the

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

CAD5BM<5G7CBHFC@@=B;=BH9F9GHG=B5B9BH=HM5B8H<9F9EI=F9A9BHHC7CBGC@=85H9H<9577CIBHG=BH<5H9BH=HMK95B5@MN9CIF =BJ9GHA9BHG=BF95@9GH5H9=B577CF85B79K=H<H<=G577CIBH=B;GH5B85F8HC89H9FA=B9K<9H<9FH<9M5F9J5F=56@9=BH9F9GH9BH=H=9G T0#GU5B8=:GCK<9H<9FK95F9H<9DF=A5FM69B9:=7=5FM
)IF>I8;A9BHK=H<F9GD97HHCCIF@9J9@C:=B:@I9B79CF7CBHFC@CJ9F 5B9BH=HM5B8K<9H<9FK95F9H<9DF=A5FM69B9:=7=5FMC:50#=BJC@J9G7CBG=89F5H=CBC:J5F=CIG:57HCFG=B7@I8=B;H<9:CFAC: CIFCKB9FG<=D=BH9F9GHCIFJCH=B;=BH9F9GHH9G=N9C:CIF=BJ9GHA9BH=B7@I8=B;@C5BG5B8CIF56=@=HMHCD5FH=7=D5H9=BA5CF DC@=7M?A5?=B;897=G=CBG
)IF56=@=HMHC7CFF97H@M5GG9GGCIF=B:@I9B79CF7CBHFC@CJ9F5B9BH=HM5::97HGH<9DF9G9BH5H=CBC:H<9G9 =BJ9GHA9BHG=BF95@9GH5H9CBCIF7CBGC@=85H98:=B5B7=5@GH5H9A9BHG
GC:979A69FH<9CAD5BM89H9FA=B98H<5HH<9 HFIGH:CFA98:CFH<969B9:=HC:H<9BCH9<C@89FGH<9T.FIGHU:CFH<9G97IF=H=N5H=CBC:H<9IB;I5F5BH998DCFH=CBC:79FH5=BC:CIF -5@C5BGF979=J56@9=G7CBG=89F9850#
DD@M=B;H<97CBGC@=85H=CBF9EI=F9A9BHG:CF0#GIB89FH<9577CIBH=B;FI@9G=B -.CD=765:630+(;065H<9CAD5BM89H9FA=B98H<5H=H=GH<9DF=A5FM69B9:=7=5FM65G98CB=HGDCK9FHC8=F97H57H=J=H=9G H<FCI;<=HGFC@95GG9FJ=79F5B8=HGC6@=;5H=CBGHC56GCF6@CGG9G5B8F=;<HHCF979=J969B9:=HG
(CH9

=E4BC<4=CB8='40;BC0C4S#BJ9GHA9BHG=BF95@9GH5H95F9GH5H985H89DF97=5H987CGH
9DF97=5H=CB5B85ACFH=N5H=CB 5F9F97CF898CB5GHF5=;<H?@=B965G=GCJ9FH<99GH=A5H98IG9:I@@=J9G5G:C@@CKG

I=@8=B;G5B8=ADFCJ9A9BHG	M95FG
IFB=HIF9:=LHIF9G5B89EI=DA9BH	M95FG
.9B5BH=ADFCJ9A9BHG	&9GG9FC:IG9:I@@=:9CF@95G9H9FA

1975D=H5@=N9DFC>97H7CGHG=B7@I8=B;DF9?7CBGHFI7H=CB7CGHG=BH9F9GH9LD9BG9DFCD9FHMH5L9G=BGIF5B795B8CH<9F 7CGHG8=F97H@MF9@5H985B89GG9BH=5@HCH989J9@CDA9BHF989J9@CDA9BHCF7CBGHFI7H=CBC:5DFC97HK<=@957H=J=H=9G5F9CB;C=B; HCDF9D5F95B5GG9H:CF=HG=BH9B898IG9
CGHG=B7IFF985:H9F5DFC>97H=GGI6GH5BH=5@@M7CAD@9H95B8F958M:CF=HG=BH9B898IG95F9 9LD9BG985G=B7IFF98

ADFCJ9A9BHG5B8F9D@579A9BHG5F975D=H5@=N98K<9BH<9M9LH9B8H<9IG9:I@@=:9=B7F95G975D57=HMCF=ADFCJ9H<9 9::=7=9B7MC:H<95GG9H

)F8=B5FMF9D5=FG5B8A5=BH9B5B795F99LD9BG985G=B7IFF98

'42>E4A018;8CH>5=E4BC<4=CB8='40;BC0C4S#BJ9GHA9BHG=BF95@9GH5H95F99J5@I5H98:CF=AD5=FA9BHK<9B9J9F 9J9BHGCF7<5B;9G=B7=F7IAGH5B79G=B8=75H9H<5HH<975FFM=B;5ACIBHC:5B5GG9HA5MBCH69F97CJ9F56@9

:5B8K<9BGI7< 9J9BHGCF7<5B;9G=B7=F7IAGH5B79G5F9DF9G9BHH<9F97CJ9F56=@=HMC:5GG9HGHC699@85B8IG98F9EI=F9GG=;B=:=75BHI8;A9BH 5B89GH=A5H9G5B8=GA95GIF986M57CAD5F=GCBC:H<975FFM=B;5ACIBHHCH<9:IHIF9IB8=G7CIBH9875G<:@CKG9LD97H98HC69 ;9B9F5H986MH<95GG9HG5B8=HG9J9BHI5@8=GDCG=H=CB

:H<9IB8=G7CIBH9875G<:@CKG5F9@9GGH<5BH<975FFM=B;5ACIBHC:H<9 5GG9HG5B=AD5=FA9BH=GF97C;B=N98HCH<99LH9BHH<975FFM=B;5ACIBHC:H<95GG9HG9L7998GH<99GH=A5H98:5=FJ5@I9C:H<95GG9HG .<9DFC79GG:CF9J5@I5H=B;F95@9GH5H9=AD5=FA9BHF9EI=F9GA5B5;9A9BHHCA5?9G=;B=:=75BH5GGIADH=CBGF9@5H98HC79FH5=B =BDIHG=B7@I8=B;F9BH5@F5H9G@95G9?IDD9F=C8C77ID5B7M9GH=A5H98<C@8=B;D9F=C8G75D=H5@9LD9B8=HIF9G;FCKH<F5H9GA5F?9H 8=G7CIBHF5H9G5B8H9FA=B5@75D=H5@=N5H=CBF5H9G

CFH<9CAD5BMVG<CH9@DFCD9FHM588=H=CB5@=BDIHG7CBG=89F98=B7@I89F9J9BI9 D9F5J5=@56@9FCCA5B85J9F5;985=@MF5H9
.<9G9=BDIHGF9EI=F95GI6>97H=J99J5@I5H=CB65G98CBH<9GD97=:=7DFCD9FHM5B8 A5F?9H
<5B;9G=BH<95GGIADH=CBG7CI@8<5J95G=;B=:=75BH=AD57HCB9=H<9FH<9:5=FJ5@I9H<95ACIBHC:=AD5=FA9BH7<5F;9 =:5BMCF6CH<
GG9HG<9@8:CFG5@95F9F9DCFH985HH<9@CK9FC:H<95GG9HVG75FFM=B;5ACIBHCF:5=FJ5@I9@9GG7CGHGHCG9@@
1<9B 5B5GG9H=G=89BH=:=986MH<9CAD5BM5G<9@8:CFG5@9K9K=@@795G9F97CF8=B;89DF97=5H=CB5B85ACFH=N5H=CBC:H<95GG9H
19 F97C;B=N98=AD5=FA9BHC:@CB;?@=J985GG9HGC:
A=@@=CB5B88IF=B;H<9M95FG9B898979A69F5B8 F9GD97H=J9@M(CH9

0B70=30B7@D8E0;4=CBS5G<5B875G<9EI=J5@9BHG=B7@I89G<CFH?H9FA@=EI=8=BJ9GHA9BHGK=H<=B=H=5@A5HIF=H=9G C:H<F99ACBH<GCF@9GG

'4BCA82C430B7S)IFACFH;5;9@C5B5B8<CH9@A5B5;9A9BH5;F99A9BHGDFCJ=89:CF89DCG=H=B;75G<=BHCF9GHF=7H98 577CIBHGF9G9FJ98:CF75D=H5@9LD9B8=HIF9G:F99F9BHH9B5BH=ADFCJ9A9BH5B8@95G=B;7CAA=GG=CBC6@=;5H=CBG
,9GHF=7H9875G< 5@GC=B7@I89G75G<F9EI=F98HC69G9;F9;5H98=B7CBB97H=CBK=H<79FH5=BC:CIF@C5BGF979=J56@9

!>0=B'4248E01;4S)IF@C5BGF979=J56@95F975FF=985HH<9=FIB5ACFH=N98DF=B7=D5@65@5B79@9GGIB5ACFH=N98 57EI=G=H=CB8=G7CIBHG5B8DF9A=IAG89:9FF98CF=;=B5H=CB:99GF9H5=B98@C5B8=G7CIBHG5B8@C5B@CGGF9G9FJ9G
7EI=G=H=CB 8=G7CIBHGCFDF9A=IAGCF=;=B5H=CB:99G5B8F9H5=B98@C5B8=G7CIBHG5F95ACFH=N985G57CADCB9BHC:=BH9F9GH5B8CH<9F=B7CA9 IG=B;H<99::97H=J9=BH9F9GHA9H<C8CJ9FH<9@=:9C:H<9F9GD97H=J9@C5BGCFCB5GHF5=;<H?@=B965G=GK<9B=H5DDFCL=A5H9GH<9 9::97H=J9=BH9F9GHA9H<C8
@@@C5BGK9F9CF=;=B5H98DIFGI5BHHCDFC;F5AGGDCBGCF986MH<9-A5@@IG=B9GG8A=B=GHF5H=CBH<9 T-U
.<9DFC;F5AG7CBG=GHC:@C5BGCF=;=B5H98IB89FH<9-5-A5@@IG=B9GG&C5B*FC;F5A5B87CAA9B7=B;K=H<H<9 EI5FH9F9B898\$IB9H<9*5M7<97?*FCH97H=CB*FC;F5AH<9T***U

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

*IFGI5BHHCH<9-5-A5@@IG=B9GG&C5B*FC;F5AK9G9@@H<9DCFH=CBC:H<9@C5BH<5H=G;I5F5BH9986MH<9 /DCBG5@9C:H<9-;I5F5BH998DCFH=CBC:H<9@C5BGK<=7<5F9577CIBH98:CF5GG5@9GH<9IB;I5F5BH998DCFH=CBC:H<9 @C5BF9H5=B986MIG=G:5=FJ5@I985B858=G7CIBHH<9T,9H5=B98&C5B=G7CIBHU=GF97CF8985G5F98I7H=CB=B65G=GC:H<9 F9H5=B98DCFH=CBC:H<9@C5B
/B5ACFH=N98F9H5=B98@C5B8=G7CIBHGK9F9
A=@@=CB5B8
A=@@=CB5GC:979A69F 5B8F9GD97H=J9@M

HH<97EI=G=H=CB5H9H975FFM=B;J5@I9C:CIF@C5BGK5G58IGH98HC9GH=A5H98:5=FA5F?9HJ5@I95B857EI=G=H=CB 8=G7CIBHGK9F9F97CF898K<=7<5F969=B;577F9H98HC=BH9F9GH5B8CH<9F=B7CA9IG=B;H<99::97H=J9=BH9F9GHA9H<C8
7EI=G=H=CB 8=G7CIBHGC:5B8F9A5=B985GC:979A69F5B8F9GD97H=J9@M

@C5BF979=J56@9=G;9B9F5@@M7@5GG=:=985GBCB?577FI5@5T(CB?77FI5@&C5BU=:==H=GD5GH8I95GHCD5MA9BHC: DF=B7=D5@CF=BH9F9GH:CF5D9F=C8C:85MGCFACF9==5BMDCFH=CBC:H<9@C5B=G7@5GG=:=985G8CI6H:I@CF=G7<5F;98?C::CF=== H<9F9D5MA9BH=B:I@@C:H<9DF=B7=D5@5B8CF=BH9F9GH=G=B8CI6H
!9B9F5@@M@C5BG5F97<5F;98?C::K<9BA5B5;9A9BH89H9FA=B9G H<5HK9K=@@69IB56@9HC7C@@97H5BMF9A5=B=B;5ACIBHG8I9IB89FH<9@C5B5;F99A9BH9=H<9FH<FCI;<@=EI=85H=CBC:7C@@5H9F5@CF CH<9FA95BG

BH9F9GH=B7CA9=B7@I898=B=BH9F9GH5B8CH<9F=B7CA9CB5(CB?77FI5@&C5B=GF97C;B=N98CBH<97CGHF97CJ9FM 65G=G

!>0=!>BB'4B4AE4BS)B5EI5FH9F@M65G=G5B8ACF9:F9EI9BH@M=:=B8=75HCFG9L=GHK99J5@I5H9H<97C@@97H56=@=HMC: CIF@C5BGF979=J56@9
)IF9J5@I5H=CBC:7C@@97H56=@=HM=BJC@J9GG=;B=:=75BH>I8;A9BH9GH=A5H9G5B85F9J=9KC:H<956=@=HMC:H<9 6CFFCK9FHCA5?9DF=B7=D5@5B8=BH9F9GHD5MA9BHGH<9IB89F@M=B;7C@@5H9F5@5B8H<96CFFCK9FGV6IG=B9GGAC89@G5B8:IHIF9 CD9F5H=CBG
CFH<9M95FG9B898979A69F5B8K9F97CF8985B9HF97CJ9FMC:5B8B9H=AD5=FA9BH @CGG9GC:5B8F9GD97H=J9@MCBCIF@C5BGF979=J56@9
.9F9K9F9BCA5H9F=5@@C5BGF979=J56@9GI697HHC7F98=H F=G?K<=7<K9F97CBG=89F98HC69=AD5=F985GC:979A69FCF
.<9CAD5BM7CBG=89FG5@C5BHC69=AD5=F98 K<9BH<9CAD5BM8C9GBCH9LD97HHC7C@@97H5@@C:H<97CBHF57HI5@=BH9F9GH5B8DF=B7=D5@D5MA9BHG5GG7<98I@98=BH<9@C5B 5;F99A9BHG
195@GC9GH56@=G<5;9B9F5@@C5B@CGGF9G9FJ9K<9B5J5=@56@9=B:CFA5H=CB=B8=75H9GH<5H=H=GDFC656@95@CGG<5G C77IFF9865G98CBH<975FFM=B;J5@I9C:H<9DCFH:C@=C5B8H<95ACIBHC:H<9@CGG75B69F95GCB56@M9GH=A5H98
-=;B=:=75BH >I8;A9BH=GF9EI=F98=B89H9FA=B=B;H<9;9B9F5@@C5B@CGGF9G9FJ9=B7@I8=B;9GH=A5H9GC:H<9@=?9@=<CC8C:89:5I@H5B8H<9 9GH=A5H98:5=FJ5@I9C:H<97C@@5H9F5@
.<9;9B9F5@@C5B@CGGF9G9FJ9=B7@I89GH<CG9@C5BGK<=7<A5M<5J9B9;5H=J9 7<5F57H9F=GH=7GK<=7<<5J9BCHM9H697CA9?BCKBHCIG

B588=H=CBHCH<9F9G9FJ9G9GH56@=G<98CB@C5BGBCH7CBG=89F98=AD5=F98 H<5H<5J9699B9J5@I5H98IB89F5GD97=:=79J5@I5H=CBK99GH56@=G<H<9;9B9F5@@C5B@CGGF9G9FJ9IG=B;57CBG=GH9BHA9H<C8C@C;M HC89H9FA=B95@CGGD9F79BH5;9HC695DD@=98HC@C5B65@5B79G

.<9G9@CGGD9F79BH5;9G5F965G98CBA5BM:57HCFGDF=A5F=@M 7IAI@5H=J95B8F979BH@CGG<=GHCFM5B8;9B9F5@97CBCA=77CB8=H=CBG
CFH<9M95FG9B898979A69F5B8K9<5J9 @C5B@CGGF9G9FJ9GC:5B8F9GD97H=J9@M

454AA43'4=C'4248E01;40=370A64BS9:9FF98F9BHF979=J56@95B87<5F;9G7CBG=GHC:89:9FF98F9BH89:9FF98 @95G=B;7CGHG89:9FF98C::9F=B;7CGHG(CH95B8CH<9F89:9FF987CGHG
9:9FF98@95G=B;7CGHGK<=7<F9DF9G9BH@95G9 7CAA=GG=CBG5B8CH<9F8=F97H7CGHG5GGC7=5H98K=H<H<957EI=G=H=CBC:H9B5BHG5F975D=H5@=N985B85ACFH=N98CB5GHF5=;<H?@=B9 65G=GCJ9FH<9H9FAGC:H<9F9@5H98@95G9G
9:9FF98C::9F=B;7CGHGF9DF9G9BH8=F97H7CGHG=B7IFF98=B7CBB97H=CBK=H<CIFC::9F=B;G C:-9F=9G*F9:9FF98/B=HG5B85:H9F\$5BI5FM-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?9L7@I8=B;7CGHG GD97=:=75@@M=89BH=:=56@9HC57@CG=B;GI7<5G7CAA=GG=CBG895@9F?A5B5;9F:99G5B8CH<9FC::9F=B;:99G5B89LD9BG9G !9B9F5@@M:CF5GD97=:=7=GGI5B79C:G97IF=H=9G=GGI5B79?GD97=:=7C::9F=B;7CGHG5F9F97CF8985G5F98I7H=CBC:DFC7998GF5=G98CB H<9=GGI5B7985H95B8C::9F=B;7CGHG=B7IFF986IHBCH8=F97H@MF9@5H98HC5GD97=:=75@@M=89BH=:=56@97@CG=B;C:5G97IF=HM5F9 89:9FF98
9:9FF98C::9F=B;7CGHG5F9:=FGH5@@C75H98HC957<=GGI5B79C:5G97IF=HMCB5DFC?F5H565G=G9EI5@HCH<9F5H=CC:H<9 BIA69FC:IB=HGCFG97IF=H=9G=GGI98=B5;=J9B=GGI5B79HCH<9A5L=AIABIA69FC:IB=HGCFG97IF=H=9GH<5H5F99LD97H98HC69 =GGI98=BH<9F9@5H98C::9F=B;

BH<975G9C:H<9-9F=9G*F9:9FF98/B=HGK<=7<K9F9=GGI98DF=CFHC 96FI5FMH<9 =GGI5B79?GD97=:=7C::9F=B;7CGHG5B8H<989:9FF98C::9F=B;7CGHG5@@C75H98HCGI7<=GGI5B795F9:IFH<9F5@@C75H98HCH<9-9F=9G *F9:9FF98-HC7?5B8-9F=9G*F9:9FF9815FF5BHG=GGI98=BGI7<=GGI5B7965G98CBH<9F9@5H=J9:5=FJ5@I9C:H<9=BGHFIA9BHGCB H<985H9C:=GGI5B79

.<989:9FF98C::9F=B;7CGHG5@@C75H98HCH<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF9815FF5BHG5F9 F98I7H=CBGHCH9ADCF5FM9EI=HM5B8D9FA5B9BH9EI=HMF9GD97H=J9@M

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

GC:979A69F5B889:9FF98F9BHF979=J56@95B87<5F;9GB9H7CBG=GHC:H<9:C@@CK=B;

		424<14A		424<14A
9:9FF98F9BHF979=J56@9
9:9FF98@95G=B;7CGHGB9HC:577IAI@5H985ACFH=N5H=CBC:5B8 F9GD97H=J9@M
9:9FF98C::9F=B;7CGHG
)H<9F89:9FF987CGHG
9:9FF98F9BHF979=J56@95B87<5F;9GB9H

#>=2>=CA>;;8=6=C4A4BCBS(CB7CBHFC@@=B;=BH9F9GHGF9DF9G9BHH<9=BH9F9GHG=BJ5F=CIGDFCD9FH=9GCKB986MH<=F8 D5FH=9G

'4344<01;4%A454AA43(C>2:S9;=BB=B;CBH<985H9C:CF=;=B5@=GGI5B79C:5BM;=J9BG<5F9GC:-9F=9G*F9:9FF98 -HC7?CF-9F=9G*F9:9FF98-HC7?5B8:FCA5B85:H9FH<9:=:H<5BB=J9FG5FM85H9C:H<9CF=;=B5@=GGI5B79C:H<9-9F=9G& *F9:9FF98-HC7?H<9<C@89FC:GI7<G<5F9G<5GH<9F=;<HHCF9EI=F9H<9CAD5BMHCF9899AGI7<G<5F9GGI6>97HHC79FH5=B @=A=H5H=CBG5G8=G7IGG98=B(CH9
19F97CF8H<957H=J=HMF9@5H98HCCIF-9F=9G*F9:9FF9815FF5BHG-9F=9G*F9:9FF98-HC7? 5B8-9F=9G&*F9:9FF98-HC7?=BD9FA5B9BH9EI=HM

BH<99J9BH5<C@89FC:-9F=9G*F9:9FF98-HC7?F9EI9GHGF989ADH=CBC:GI7< G<5F9G5B8GI7<F989ADH=CBH5?9GD@579DF=CFHCH<9:=FGH5BB=J9FG5FMC:H<985H9C:CF=;=B5@=GGI5B79H<9CAD5BM=GF9EI=F98HC D5MGI7<F989ADH=CB=B75G<

G5F9GI@HK9F97CF8=GGI5B79GC:CIF-9F=9G*F9:9FF98-HC7?=BH9ADCF5FM9EI=HM
)BH<9:=FGH 5BB=J9FG5FMC:H<985H9C:CF=;=B5@=GGI5B79C:5D5FH=7I@5FG<5F9C:-9F=9G*F9:9FF98-HC7?K9F97@5GG=:MGI7<G<5F9C:-9F=9G *F9:9FF98-HC7?:FCAH9ADCF5FM9EI=HMHCD9FA5B9BH9EI=HM6975IG9H<9:95HIF9;=J=B;F=G9HCH9ADCF5FM9EI=HM7@5GG=:=75H=CB H<9F9EI=F9A9BHHCG5H=G:MF989ADH=CBF9EI9GHG=B75G<@5DG9GCBH<9:=FGH5BB=J9FG5FM85H9

%DA270B422>D=C8=65>A2@D8B8C8>=>5=E4BC<4=CB8='40;BC0C4S195DD@MH<957EI=G=H=CBA9H<C8HC5@@ 57EI=F98F95@9GH5H95GG9HG
.<9DIF7<5G97CBG=89F5H=CBC:H<9F95@9GH5H9K<=7<=B7@I89GH<9HF5BG57H=CB7CGHG=B7IFF98=B 7CBB97H=CBK=H<GI7<57EI=G=H=CBG=GF97CF8985H:5=FJ5@I9HCH<957EI=F98H5B;=6@95GG9HG7CBG=GH=B;DF=A5F=@MC:@5B8@5B8 =ADFCJ9A9BHG6I=@8=B;5B8=ADFCJ9A9BHGH9B5BH=ADFCJ9A9BHG5B8:IFB=HIF9:=LHIF9G5B89EI=DA9BH5B8=89BH=:=98 =BH5B;=6@95GG9HG5B8@=56=@=H=9G7CBG=GH=B;C:H<9J5@I9C:57EI=F9856CJ9?A5F?9H5B869@CK?A5F?9H@95G9G=B?D@579@95G9G5B8 ;FCIB8@95G9G=:5BM65G98=B957<75G9CBH<9=FF9@5H=J9:5=FJ5@I9G
&C5BDF9A=IAG=BH<975G9C:56CJ9?A5F?9HF5H9@C5BGCF @C5B8=G7CIBHG=BH<975G9C:69@CK?A5F?9HF5H9@C5BG5F9F97CF89865G98CBH<9:5=FJ5@I9C:5BM@C5BG5GGIA98=B7CBB97H=CB K=H<57EI=F=B;H<9F95@9GH5H9

.<9:5=FJ5@I9C:H<9H5B;=6@95GG9HGC:5B57EI=F98DFCD9FHM=G89H9FA=B986MJ5@I=B;H<9DFCD9FHM5G=:=HK9F9J575BH 5B8H<9T5G?=:?J575BHUJ5@I9=GH<9B5@@C75H98HC@5B8CF57EI=F98;FCIB8@95G9=:H9@5B8=GGI697HHC5;FCIB8@95G9@5B8 =ADFCJ9A9BHG6I=@8=B;5B8=ADFCJ9A9BHG5B8H9B5BH=ADFCJ9A9BHG65G98CBA5B5;9A9BHVG89H9FA=B5H=CBC:H<9F9@5H=J9:5=F J5@I9GC:H<9G95GG9HG
'5B5;9A9BH89H9FA=B9GH<95G?=:?J575BH:5=FJ5@I9C:5DFCD9FHMIG=B;A9H<C8GG=A=@5FHCH<CG9IG986M =B89D9B89BH5DDF5=G9FG
57HCFG7CBG=89F986MA5B5;9A9BH=BD9F:CFA=B;H<9G95B5@MG9G=B7@I895B9GH=A5H9C:75FFM=B;7CGHG 8IF=B;H<99LD97H98@95G9?IDD9F=C8G7CBG=89F=B;7IFF9BHA5F?9H7CB8=H=CBG5B87CGHGHC9L97IH9G=A=@5F@95G9G

B9GH=A5H=B; 75FFM=B;7CGHGA5B5;9A9BH=B7@I89GF95@9GH5H9H5L9G=BGIF5B795B8CH<9FCD9F5H=B;9LD9BG9G5B89GH=A5H9GC:@CGHF9BH5@ F9J9BI98IF=B;H<99LD97H98@95G9?IDD9F=C8G65G98CB7IFF9BHA5F?9H89A5B8

'5B5;9A9BH5@GC9GH=A5H9G7CGHGHC9L97IH9 G=A=@5F@95G9G=B7@I8=B;@95G=B;7CAA=GG=CBG@9;5@5B8CH<9FF9@5H987CGHG

B5@@C75H=B;H<9DIF7<5G97CBG=89F5H=CBC:H<9=89BH=:=98=BH5B;=6@95GG9HG5B8@=56=@=H=9GC:5B57EI=F98DFCD9FHM 56CJ9?A5F?9H69@CK?A5F?9H5B8=B?D@579@95G9J5@I9G5F9F97CF89865G98CBH<9DF9G9BHJ5@I9IG=B;5B=BH9F9GHF5H9H<5H F9:@97HGH<9F=G?G5GGC7=5H98K=H<H<9@95G9G57EI=F98C:H<98=::9F9B7969HK99B=H<97CBHF57HI5@5ACIBHGHC69D5=8DIFGI5BH HCH<9=B?D@579@95G9G5B8==A5B5;9A9BHVG9GH=A5H9C::5=FA5F?9H@95G9F5H9G:CFH<97CFF9GDCB8=B;=B?D@579@95G9GA95GIF98 CJ9F5D9F=C89EI5@HCH<9F9A5=B=B;BCB?75B79@56@9H9FAC:H<9@95G95B8:CF69@CK?A5F?9H@95G9GCJ9F5D9F=C89EI5@HCH<9 =B=H=5@H9FAD@IG5BM69@CK?A5F?9H:=L98?F5H9F9B9K5@D9F=C8G

7EI=F9856CJ9?A5F?9H5B869@CK?A5F?9H@95G9G5F95ACFH=N98 5B8F97CF898HCF9BH5@5B8CH<9FDFCD9FHM=B7CA9CJ9FH<9=B=H=5@H9FAGC:H<9F9GD97H=J9@95G9G

.<95;;F9;5H9J5@I9C:CH<9F57EI=F98=BH5B;=6@95GG9HG7CBG=GH=B;C:=B?D@579@95G9G5B8H9B5BHF9@5H=CBG<=DG=G A95GIF986MH<99GH=A5H987CGHC:CD9F5H=CBG8IF=B;5H<9CF9H=75@@95G9?IDD9F=C8HCF9D@579=B?D@579@95G9G=B7@I8=B;@CGH F9J9BI9G5B85BMIBF9=A6IFG98CD9F5H=B;9LD9BG9GD@IG5B9GH=A5H9C:89:9FF98@95G=B;7CAA=GG=CBG:CF=B?D@579@95G9G
.<9

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

J5@I9C:=B?D@579@95G9G=G5ACFH=N98HC9LD9BG9CJ9FH<9F9A5=B=B;BCB?75B79@56@9D9F=C8GC:H<9F9GD97H=J9@95G9G

:5@95G9=G H9FA=B5H98DF=CFHC=HGGH5H989LD=F5H=CB5@@IB5ACFH=N985ACIBHGF9@5H=B;HCH<5H@95G95F9KF=HH9B?C::

'4E4=D4'42>6=8C8>=S19IG95:=J9?GH9DAC89@HCF97C;B=N9F9J9BI9:CF7CBHF57HGK=H<7IGHCA9FG
.<9:=J9?GH9D AC89@F9EI=F9GH<5HK9==89BH=:MH<97CBHF57HK=H<H<97IGHCA9F===89BH=:MH<9D9F:CFA5B79C6@=;5H=CBG=BH<97CBHF57H=== 89H9FA=B9H<9HF5BG57H=CBDF=79=B7@I8=B;J5F=56@97CBG=89F5H=CBHCH<99LH9BHH<5H=H=GDFC656@9H<5H5G=;B=:=75BH:IHIF9F9J9FG5@ K=@@BCHC77IF=J5@@C75H9H<9HF5BG57H=CBDF=79HCH<9D9F:CFA5B79C6@=;5H=CBG=BH<97CBHF57H5B8JF97C;B=N9F9J9BI9K<9B CF5GK9G5H=G:MH<9D9F:CFA5B79C6@=;5H=CB

",=,5<,-9643,(:05.(*;0=0;0,:

19CD9F5H95G5@9GGCFC:F95@9GH5H95GG9HGDF=A5F=@M=B@5GG5B87F95H=J9C::=795GG9HG

B89H9FA=B=B;K<9H<9FCIF 7CBHF57HGK=H<CIFH9B5BHG7CBGH=HIH9@95G9GK989H9FA=B98H<5HCIF7CBHF57HG9LD@=7=H@M=89BH=:MH<9DF9A=G9G5B8H<5H5BM GI6GH=HIH=CBF=;<HGHCF9@C75H9H<9H9B5BHHCCH<9FDF9A=G9GK=H<=BH<9G5A96I=@8=B;GH5H98=BH<97CBHF57H5F9BCHGI6GH5BH=J9 88=H=CB5@@MGC@CB;5GD5MA9BHG5F9A589H=A9@MIB89FH<9G97CBHF57HGCIFH9B5BHG<5J9H<9F=;<HHCC6H5=BGI6GH5BH=5@@M5@@ H<997CBCA=769B9:=HG:FCAH<9IG9C:H<=G=89BH=:=985GG9H5B875B8=F97H<CK5B8:CFK<5HDIFDCG9H<9DF9A=G9G5F9IG98HC 7CB8I7HH<9=FCD9F5H=CBG

.<9F9:CF9CIF7CBHF57HGK=H<CIFH9B5BHG7CBGH=HIH9@95G9G

@@@95G9G5F97@5GG=:=985GCD9F5H=B;@95G9G5B8A=B=AIAF9BHG5F9F97C;B=N98CB5GHF5=;<H?@=B965G=GCJ9FH<9H9FAGC: H<9@95G9GK<9B7C@@97H56=@=HM=GDFC656@95B8H<9H9B5BH<5GH5?9BDCGG9GG=CBCF7CBHFC@GH<9D<MG=75@IG9C:H<9@95G985GG9H .<99L79GGC:F9BHGF97C;B=N98CJ9F5ACIBHG7CBHF57HI5@@M8I9DIFGI5BHHCH<9IB89F@M=B;@95G9G=GF97CF8985G89:9FF98F9BH

: H<9@95G9DFCJ=89G:CFH9B5BH=ADFCJ9A9BHGK989H9FA=B9K<9H<9FH<9H9B5BH=ADFCJ9A9BHG:CF577CIBH=B;DIFDCG9G5F9 CKB986MH<9H9B5BHCFIG

1<9BK95F9H<9CKB9FC:H<9H9B5BH=ADFCJ9A9BHGH<9H9B5BH=GBCH7CBG=89F98HC<5J9H5?9B D<MG=75@DCGG9GG=CBCF<5J97CBHFC@C:H<9D<MG=75@IG9C:H<9@95G985GG9HIBH=@H<9H9B5BH=ADFCJ9A9BHG5F9GI6GH5BH=5@@M 7CAD@9H98
1<9BH<9H9B5BH=G7CBG=89F98H<9CKB9FC:H<9=ADFCJ9A9BHG5BMH9B5BH=ADFCJ9A9BH5@@CK5B79H<5H=G:IB898=G HF95H985G5B=B79BH=J9
&95G9=B79BH=J9GD5=8HCH9B5BHG5F9=B7@I898=BCH<9F5GG9HG5B85ACFH=N985G5F98I7H=CBHCF9BH5@ F9J9BI9CB5GHF5=;<H?@=B965G=GCJ9FH<9H9FAC:H<9F9@5H98@95G9
&95G9=B79BH=J9GC:
A=@@=CB5B8
A=@@=CB5F9 DF9G9BH98B9HC:577IAI@5H985ACFH=N5H=CBC:
A=@@=CB5B8
A=@@=CB5GC:979A69F5B8F9GD97H=J9@M

,9=A6IFG9A9BHG:FCAH9B5BHG7CBG=GH=B;C:5ACIBHG8I9:FCAH9B5BHG:CF7CAACB5F95A5=BH9B5B79F95@9GH5H9H5L9G =BGIF5B795B8CH<9FF97CJ9F56@97CGHG5F9F97C;B=N985GF9J9BI95B85F9=B7@I898=BF9BH5@5B8CH<9FDFCD9FHM=B7CA9=BH<9 D9F=C8H<99LD9BG9G5F9=B7IFF98K=H<H<97CFF9GDCB8=B;9LD9BG9G=B7@I898=BF9BH5@5B8CH<9FDFCD9FHMCD9F5H=B;9LD9BG9 .9B5BHF9=A6IFG9A9BHG5F9F97C;B=N985B8DF9G9BH98CB5;FCGG65G=GK<9BK95F9DF=A5F=@MF9GDCBG=6@9:CF:I@:=@@=B;H<9 DFCA=G9HCDFCJ=89H<9GD97=:=98;CC8CFG9FJ=795B87CBHFC@H<5HGD97=:=98;CC8CFG9FJ=7969:CF9=H=GHF5BG:9FF98HCH<9H9B5BH 19<5J99@97H98BCHHCG9D5F5H9@95G95B8BCB?@95G97CADCB9BHG5GH<9D5HH9FBC:F9J9BI9F97C;B=H=CB8C9GBCH8=::9F:CFH<9 HKC7CADCB9BHG5B8H<9BCB?@95G97CADCB9BH=GBCHH<9DF=A5FM7CADCB9BH=BCIF@95G9G

B588=H=CBHCA=B=AIAF9BHG79FH5=B@95G9GDFCJ=89:CF588=H=CB5@F9BHG65G98IDCBJ5FM=B;D9F79BH5;9GC:H9B5BHGV G5@9G=B9L79GGC:5BBI5@A=B=AIAG

*9F79BH5;9F9BH=GF97C;B=N98CB79@9GG99GVGD97=:=98G5@9GH5F;9HG<5J9699BA9H

1989F=J9D5F?=B;F9J9BI9G:FCA@95G9GK=H<H<=F8?D5FHMCD9F5HCFG
)IFD5F?=B;@95G9GDFCJ=89:CF588=H=CB5@F9BHG 65G98IDCBJ5FM=B;D9F79BH5;9GC:H9B5BHGVG5@9G=B9L79GGC:5BBI5@A=B=AIAG
*5F?=B;D9F79BH5;9F9BH=GF97C;B=N98CB79 @9GG99GVGD97=:=7G5@9GH5F;9HG<5J9699BA9H

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

CFH<9M95FG9B898979A69F5B8K9F97C;B=N98F9BH5@=B7CA95G:C@@CKG

	.40A=343424<14A
				=BH<CIG5B8G
'4=C0;0=3>C74A?A>?4ACH8=2><4
=L98@95G9D5MA9BHG
05F=56@9@95G9D5MA9BHG
,9BH5@5B8CH<9FDFCD9FHM=B7CA9

=L98@95G9D5MA9BHG=B7@I897CBHF57HI5@F9BHGIB89F@95G95;F99A9BHGK=H<H9B5BHGF97C;B=N98CB5GHF5=;<H?@=B965G=G CJ9FH<9@95G9H9FA=B7@I8=B;5ACFH=N5H=CBC:57EI=F9856CJ9?A5F?9H@95G9G69@CK?A5F?9H@95G9G5B8@95G9=B79BH=J9G

05F=56@9@95G9D5MA9BHG=B7@I899LD9BG9F9=A6IFG9A9BHG6=@@98HCH9B5BHG5B8D9F79BH5;9F9BHB9HC:658896H9LD9BG9 :FCACIFCD9F5H=B;@95G9G

.<9CAD5BM7CBH=BI5@@MF9J=9KGK<9H<9F7C@@97H=CBC:@95G9?F9@5H98F979=J56@9G=B7@I8=B;5BMGHF5=;<H?@=B9F9BH5B8 7IFF9BH5B8:IHIF9CD9F5H=B;9LD9BG9F9=A6IFG9A9BHG:FCAH9B5BHG5F9DFC656@9
.<989H9FA=B5H=CBC:K<9H<9F7C@@97H56=@=HM=G DFC656@9H5?9G=BHC7CBG=89F5H=CBH<9H9B5BHVGD5MA9BH<=GHCFMH<9:=B5B7=5@7CB8=H=CBC:H<9H9B5BH6IG=B9GG7CB8=H=CBG=BH<9 =B8IGHFM=BK<=7<H<9H9B5BHCD9F5H9G5B897CBCA=77CB8=H=CBG=BH<95F95=BK<=7<H<9DFCD9FHM=G@C75H98
/DCBH<9 89H9FA=B5H=CBH<5HH<97C@@97H56=@=HMC:5F979=J56@9=GBCHDFC656@9H<9CAD5BMK=@@F97CF85F98I7H=CBHCF9BH5@5B8CH<9F DFCD9FHM=B7CA9:CF5ACIBHGDF9J=CIG@MF97CF8985B85897F95G9=BH<9CIHGH5B8=B;F979=J56@9
,9J9BI9:FCA@95G9GK<9F9 7C@@97H=CB=G899A98HC69BCHDFC656@9=GF97CF898CB575G<65G=GIBH=@7C@@97H56=@=HM697CA9GDFC656@9
'5B5;9A9BHVG 9GH=A5H9C:H<97C@@97H56=@=HMC:@95G9?F9@5H98F979=J56@9G=G65G98CBH<969GH=B:CFA5H=CB5J5=@56@95HH<9H=A9C:9GH=A5H9
.<9 CAD5BM8C9GBCHIG95;9B9F5@F9G9FJ95DDFC575B8@95G9F9@5H98F979=J56@9G5F958IGH985B8H5?9B5;5=BGHF9BH5@5B8CH<9F DFCD9FHM=B7CA9CB@MK<9B7C@@97H56=@=HM697CA9GBCHDFC656@9
GC:979A69F5B8H<9CAD5BM=89BH=:=98 79FH5=BH9B5BHGK<9F97C@@97H=CBK5GBC@CB;9F7CBG=89F98DFC656@95B8897F95G98CIHGH5B8=B;F979=J56@9GC:
A=@@=CB5B8 F9GD97H=J9@M

",=,5<,-9643,5+05.(*;0=0;0,:

BH9F9GH=B7CA9=B7@I898=B=BH9F9GH5B8CH<9F=B7CA9=G7CADF=G98C:=BH9F9GH95FB98CB@C5BG5B8CIFG<CFH?H9FA =BJ9GHA9BHG5B8H<9577F9H=CBC:B9H@C5BCF=;=B5H=CB:99G5B88=G7CIBHG

BH9F9GH=B7CA9CB@C5BG=G577FI985G95FB98K=H<H<9 577FI5@C:=BH9F9GHGIGD9B898K<9BH<9F9@5H98@C5B697CA9G5(CB?77FI5@&C5B

",=,5<,-964/6;,3(*;0=0;0,:

"CH9@F9J9BI9=GF97C;B=N98IDCB9GH56@=G<A9BHC:57CBHF57HK=H<57IGHCA9F
H7CBHF57H=B79DH=CBH<9CAD5BM 5GG9GG9GH<9;CC8G5B8G9FJ=79GDFCA=G98=B=HG7CBHF57HGK=H<7IGHCA9FG5B8=89BH=:=9G5D9F:CFA5B79C6@=;5H=CB:CF957< DFCA=G9HCHF5BG:9FHCH<97IGHCA9F5;CC8CFG9FJ=79CF6IB8@9C:;CC8GCFG9FJ=79GH<5H=G8=GH=B7H
.C=89BH=:MH<9 D9F:CFA5B79C6@=;5H=CBGH<9CAD5BM7CBG=89FG5@@C:H<9;CC8GCFG9FJ=79GDFCA=G98=BH<97CBHF57HF9;5F8@9GGC:K<9H<9F H<9M5F99LD@=7=H@MGH5H98CF=AD@=986M7IGHCA5FM6IG=B9GGDF57H=79G
05F=CIGD9F:CFA5B79C6@=;5H=CBGC:<CH9@F9J9BI9G75B69 75H9;CF=N985G:C@@CKG

• P 75B79@@56@95B8BCB75B79@56@9FCCAF9J9BI9G:FCAF9G9FJ5H=CBG5B8
• P 5B7=@@5FMG9FJ=79G=B7@I8=B;:57=@=HMIG5;95B8:CC8CF69J9F5;9

5B79@@56@9F9G9FJ5H=CBGF9DF9G9BH5G=B;@9D9F:CFA5B79C6@=;5H=CBC:DFCJ=8=B;@C8;=B;G9FJ=79G5HH<9<CH9@
.<9 CAD5BMG5H=G:=9G=HGD9F:CFA5B79C6@=;5H=CB5B8F97C;B=N9GF9J9BI9G5GGC7=5H98K=H<H<9G9F9G9FJ5H=CBGCJ9FH=A95GG9FJ=79G 5F9F9B89F98HCH<97IGHCA9F
.<9CAD5BMG5H=G:=9G=HGD9F:CFA5B79C6@=;5H=CB5B8F97C;B=N9GF9J9BI9G5GGC7=5H98K=H< BCB75B79@56@9F9G9FJ5H=CBG5HH<995F@=9FC:=H<985H9CBK<=7<H<97IGHCA9F75B79@GH<9F9G9FJ5H=CBCF==CJ9FH=A95G G9FJ=79G5F9F9B89F98HCH<97IGHCA9F

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

B7=@@5FMG9FJ=79G=B7@I89:57=@=H=9GIG5;95B8DFCJ=8=B;:CC85B869J9F5;9
.<9CAD5BMG5H=G:=9G=HGD9F:CFA5B79 C6@=;5H=CB5B8F97C;B=N9GF9J9BI9G5GGC7=5H98K=H<H<9G9G9FJ=79G5H5DC=BH=BH=A95GH<9;CC8CFG9FJ=79=G89@=J9F98HCH<9 7IGHCA9F

H=B79DH=CBC:H<9G97CBHF57HGK=H<7IGHCA9FG:CF<CH9@F9J9BI9GH<97CBHF57HI5@DF=79=G9EI=J5@9BHHCH<9HF5BG57H=CB DF=795GH<9F95F9BC9@9A9BHGC:J5F=56@97CBG=89F5H=CBHC9GH=A5H9

9@CK=G5F97CB7=@=5H=CBC:H<9<CH9@F9J9BI9:FCA7CBHF57HGK=H<7IGHCA9FGHCH<9HCH5@<CH9@G9;A9BHF9J9BI9 8=G7@CG98=B(CH9

	.40A=343424<14A
>C4;?A>?4AC84B
"CH9@=B7CA9
,9BH5@5B8CH<9FDFCD9FHM=B7CA9
#BH9F9GH5B8CH<9F=B7CA9
"CH9@F9J9BI9G

\$,5(5;9,*6=,90,:6<;:0+,6-;/,3,(:,(.9,,4,5;:

.9B5BHF97CJ9F=9GCIHG=89C:H9@95G95;F99A9BHG5F9F9@5H98HC7CBGHFI7H=CBDFC97HG=BK<=7<CIFH9B5BHG<5J95;F998 HC:I@@MF9=A6IFG9IG:CF5@@7CGHGF9@5H98HC7CBGHFI7H=CB
.<9G9G9FJ=79G=B7@I895F7<=H97HIF5@D9FA=H9LD98=H9F5B87CBGHFI7H=CB G9FJ=79G
H=B79DH=CBC:H<97CBHF57HK=H<H<97IGHCA9FH<97CBHF57HI5@DF=79=G9EI=J5@9BHHCH<9HF5BG57H=CBDF=795GH<9F95F9 BC9@9A9BHGC:J5F=56@97CBG=89F5H=CBHC9GH=A5H9
1<=@9H<9G9=B8=J=8I5@G9FJ=79G5F98=GH=B7H=BH<97CBH9LHC:H<95FF5B;9A9BH K=H<H<97IGHCA9F5@@C:H<9G9G9FJ=79G5F96IB8@98HC;9H<9F5B8F9DF9G9BH5G=B;@9D57?5;9C:7CBGHFI7H=CBG9FJ=79GF9EI9GH98 6MH<97IGHCA9F
.<9CAD5BMG5H=G:=9G=HGD9F:CFA5B79C6@=;5H=CB5B8F97C;B=N9GF9J9BI9G5GGC7=5H98K=H<H<9G9G9FJ=79GCJ9F H=A95GH<97CBGHFI7H=CB=G7CAD@9H98
ACIBHGF97C;B=N98:CFH9B5BHF97CJ9F=9GCIHG=89C:H<9@95G95;F99A9BHGK9F9 5B8:CFH<9M95FG9B898979A69F5B8F9GD97H=J9@MK<=7<5ACIBHG5F9=B7@I898=B =BH9F9GH5B8CH<9F=B7CA9CBH<97CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG
GC:979A69FH<9F9K9F9BCF9A5=B=B; D9F:CFA5B79C6@=;5H=CBG5GGC7=5H98K=H<H9B5BHF97CJ9F=9GCIHG=89C:H<9@95G95;F99A9BHG

%A4<8DD=CB>=41CS*F9A=IAG5B88=G7CIBHGCB896H5F9577F9H98CF5ACFH=N98HC=BH9F9GH9LD9BG9 IG=B;H<99::97H=J9=BH9F9GHA9H<C8CFCB5GHF5=;<H?@=B965G=GCJ9FH<9F9GD97H=J9H9FAC:H<9896HK<=7<5DDFCL=A5H9GH<9 9::97H=J9=BH9F9GHA9H<C8

(C>2:0B43><?4=B0C8>=%;0=BS19<5J9=GGI985B87CBH=BI9HC=GGI9F9GHF=7H98G<5F9GIB89FGHC7??65G98 7CAD9BG5H=CBD@5BG89G7F=698ACF9:I@@M=B(CH9
19IG9:5=FJ5@I9F97C;B=H=CBDFCJ=G=CBGHC577CIBH:CF5@@5K5F8G;F5BH98 AC8=:=98CFG9HH@98

0A=8=6B?4A(70A4L%(MS5G=7*-=G7CADIH986M8=J=8=B;B9H=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FG 6MH<9K9=;<H98?5J9F5;9BIA69FC:G<5F9GC:CAACB-HC7?CIHGH5B8=B;:CFH<9D9F=C8
(9H=B7CA95HHF=6IH56@9HC7CAACB GHC7?<C@89FG=B7@I89G5898I7H=CB:CF8=J=89B8G8I9HCDF9:9FF98GHC7?<C@89FG
=@IH98*-=G7CADIH986M8=J=8=B;B9H=B7CA9 5HHF=6IH56@9HC7CAACBGHC7?<C@89FG6MH<9K9=;<H985J9F5;9BIA69FC:G<5F9GC:CAACB-HC7?CIHGH5B8=B;58>IGH98:CFH<9 8=@IH=J99::97H=:5BMC:G97IF=H=9GGI7<5GGHC7??65G987CAD9BG5H=CB5K5F8GK5FF5BHG=B7@I8=B;H<9-9F=9G*F9:9FF98 15FF5BHG5B8DF9:9FF98GHC7?=B7@I8=B;H<9-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7? K<CG9F989ADH=CB=GD5M56@9=BG<5F9GC:CAACB-HC7?CF75G<5HH<98=G7F9H=CBC:H<9CAD5BM
.<98=@IH=J99::97HC: GHC7??65G987CAD9BG5H=CB5K5F8G5B8K5FF5BHG=B7@I8=B;H<9-9F=9G*F9:9FF9815FF5BHG=GF9:@97H98=BH<9K9=;<H985J9F5;9 8=@IH98G<5F9G75@7I@5H=CB6M5DD@=75H=CBC:H<9HF95GIFMGHC7?A9H<C8
.<98=@IH=J99::97HC:DF9:9FF98GHC7?=B7@I8=B;H<9 -9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?K<CG9F989ADH=CB=GD5M56@9=BG<5F9GC: CAACB-HC7?CF75G<5HH<98=G7F9H=CBC:H<9CAD5BM=GF9:@97H98=BH<9K9=;<H985J9F5;98=@IH98G<5F9G75@7I@5H=CB6M 5DD@=75H=CBC:H<9=:?7CBJ9FH98A9H<C8

8BCA81DC8>=BS=GHF=6IH=CBGCBCIF-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?-9F=9G&*F9:9FF98-HC7?5B8 CAACB-HC7?5F9F97CF898K<9BH<9M5F95IH<CF=N986MCIFC5F8C:=F97HCFG5B8897@5F986MH<9CAD5BM

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

Assets Held for Sale and Discontinued Operations-In the ordinary course of business, we may periodically enter into agreements to dispose of our assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. We do not classify assets that are subject to such non-binding agreements as held for sale.

We classify assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We generally believe that we meet these criteria when the plan for sale has been approved by our management, having the authority to approve the sale, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year.

Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if we were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition.

Derivative Financial Instruments-As part of risk management and operational strategies, from time to time, we may enter into derivative contracts with various counterparties. All derivatives are recognized on the balance sheet at their estimated fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designative instrument. The change in fair value of the derivative instrument that is designated as a hedge is recorded as other comprehensive income. The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations.

Income Taxes-We have elected to be taxed as a REIT under the provisions of the Code. To the extent we qualify for taxation as a REIT, we generally will not be subject to a federal corporate income tax on our taxable income that is distributed to our stockholders. We may, however, be subject to certain federal excise and state and local taxes on our income and property. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes at regular corporate rates and will not be able to qualify as a REIT for four subsequent taxable years. In order to remain qualified as a REIT under the Code, we must satisfy various requirements in each taxable year, including, among others, limitations on share ownership, asset diversification, sources of income, and the distribution of at least 90% of our taxable income within the specified time in accordance with the Code.

We have wholly-owned taxable REIT subsidiaries ("TRS's") which are subject to federal income taxes. The income generated from the taxable REIT subsidiaries is taxed at normal corporate rates. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases.

We have established a policy on classification of penalties and interest related to audits of our federal and state income tax returns. If incurred, our policy for recording interest and penalties associated with audits will be to record such items as a component of general and administrative expense. Penalties, if incurred, will be recorded in general and administrative expense and interest paid or received will be recorded in interest expense or interest income, respectively, in our consolidated statements of operations.

ASC 740, Income Taxes, provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are "more likely than not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current period. We have reviewed all open tax years and concluded that the application of ASC 740 resulted in no material effect to our consolidated financial position or results of operations.

Use of Estimates-The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

7CBH=B;9BH5GG9HG5B8@=56=@=H=9G5HH<985H9C:H<97CBGC@=85H98:=B5B7=5@GH5H9A9BHG5B8H<9F9DCFH985ACIBHGC:F9J9BI9G5B8 9LD9BG9G8IF=B;H<9F9DCFH=B;D9F=C8
7HI5@F9GI@HG7CI@88=::9F:FCAH<CG99GH=A5H9G

'42;0BB85820C8>=BS9FH5=BDF=CFD9F=C85ACIBHG<5J9699BF97@5GG=:=98HC7CB:CFAK=H<H<97IFF9BHD9F=C8 DF9G9BH5H=CB
.<9G9F97@5GG=:=75H=CBG<58BC9::97HCBDF9J=CIG@MF9DCFH98HCH5@GCFGI6HCH5@G
.<9F97@5GG=:=75H=CBG<5J9699B A589HCH<97CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG5B8H<97CBGC@=85H98GH5H9A9BHGC:75G<:@CKG:CFH<9M95FG9B898 979A69F5B85G:C@@CKG

	.40A4=343424<14A					.40A4=343424<14A
		B?A4E8>DB;H A4?>AC43		'42;0BB85820C8>=	B'4E8B43			B?A4E8>DB;H A4?>AC43		'42;0BB85820C8>=		B'4E8B43
>=B>;830C43(C0C4<4=CB>5\$?4A0C8>=B
GG9HA5B5;9A9BH5B8CH<9F:99GHCF9@5H98 D5FH=9G
LD9BG9F9=A6IFG9A9BHGHCF9@5H98D5FH=9G S7CFDCF5H9		S						S
LD9BG9F9=A6IFG9A9BHGHCF9@5H98D5FH=9G S@9B8=B;G9;A9BH		S						S
>=B>;830C43(C0C4<4=CB>50B7;>FB
9DF97=5H=CB5B85ACFH=N5H=CBB9H
-HF5=;<H?@=B9F9BH69@CK?A5F?9H;FCIB8 @95G95B85ACFH=N5H=CBC:=BH5B;=6@9 5GG9HG		S		S		S						S
9:9FF98F9BH5B85ACFH=N5H=CBC:=BH5B;=6@9 5GG9HG@=56=@=H=9G5B8@95G9=B8I79A9BHG						S						S
)H<9F5GG9HG
*5MA9BHC:IBG97IF98F9JC@J=B;@=B9GC: 7F98=HF9JC@J=B;7F98=H:57=@=H=9G ACFH;5;9GD5M56@9H9FABCH9G5B8 DF=B7=D5@CB-5@C5B?657?98BCH9G
*5MA9BHC:ACFH;5;9GD5M56@9						S		S		S		S
*FC7998G:FCA-5@C5B?657?98BCH9G		S		S		S						S
*5MA9BHC:DF=B7=D5@CB-5@C5B 657?98BCH9G						S						S
*5MA9BHC:89:9FF987CGHG
*5MA9BHC:89:9FF98@C5B7CGHG						S						S
*5MA9BHC:7CAACB8=J=89B8G										S
,9H=F9A9BHC::F57H=CB5@G<5F9GC:CAACB -HC7?						S		S		S		S
88=H=CBGHC89:9FF98@C5B7CGHG=B7@I898=B 577CIBHGD5M56@95B8577FI989LD9BG9G		S		S		S						S
77FI9889:9FF987CGHG				S
*F9:9FF98GHC7?C::9F=B;7CGHGC::G9H5;5=BGH F9899A56@9DF9:9FF98GHC7?										S
*F9:9FF98GHC7?C::9F=B;7CGHGC::G9H5;5=BGH F9899A56@9DF9:9FF98GHC7?=BD9FA5B9BH 9EI=HM						S		S		S		S

>=24=CA0C8>=>5A438C'8B:S =B5B7=5@=BGHFIA9BHGH<5HGI6>97HIGHC7F98=HF=G?7CBG=GHDF=A5F=@MC:75G<5B875G< 9EI=J5@9BHG5B8=BH9F9GHF5H9GK5D5;F99A9BHG
19<5J9CIF75G<5B875G<9EI=J5@9BHGCB89DCG=HK=H<K<5HK969@=9J9HC69 <=;<?EI5@=HM:=B5B7=5@=BGH=HIH=CBG
77CIBHG5H957<=BGH=HIH=CB5F9=BGIF986MH<9 989F5@9DCG=H#BGIF5B79CFDCF5H=CBIDHC '5B5;9A9BHFCIH=B9@M5GG9GG9GH<9:=B5B7=5@GHF9B;H<C:=HGH9B5BHG5B85G57CBG9EI9B7969@=9J9GH<5H=HG577CIBHG F979=J56@97F98=HF=G?9LDCGIF9=G@=A=H98

.<9A5>CF=HMC:CIFF9J9BI9G5F995FB98:FCADFCD9FH=9G@C75H98=B5@=:CFB=5
195F9GI6>97HHCF=G?G=B7=89BH5@HCH<9 CKB9FG<=D5B8CD9F5H=CBC:7CAA9F7=5@F95@9GH5H9
.<9G9=B7@I895ACB;CH<9FGH<9F=G?GBCFA5@@M5GGC7=5H98K=H<7<5B;9G=B H<9;9B9F5@97CBCA=77@=A5H9=BH<97CAAIB=H=9G=BK<=7<K9CD9F5H9HF9B8G=BH<9F95@9GH5H9=B8IGHFM7<5B;9G=BH5L@5KG =BH9F9GHF5H9@9J9@G5J5=@56=@=HMC::=B5B7=B;5B8H<9DCH9BH=5@@=56=@=HMIB89F9BJ=FCBA9BH5@5B8CH<9F@5KG

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

(46<4=C=5>A<0C8>=S-9;A9BH=B:CFA5H=CB=GDF9D5F98CBH<9G5A965G=GH<5HCIFA5B5;9A9BHF9J=9KG=B:CFA5H=CB :CFCD9F5H=CB5@897=G=CB?A5?=B;DIFDCG9G
)IFF9DCFH56@9G9;A9BHG:CFH<9M95FG9B898979A69F5B87CBG=GHC: HKCHMD9GC:7CAA9F7=5@F95@9GH5H9DFCD9FH=9GB5A9@MC::=795B8<CH9@5GK9@@5G5G9;A9BH:CFCIF@9B8=B;6IG=B9GG
.<9 DFC8I7HG:CFCIFC::=79G9;A9BHDF=A5F=@M=B7@I89F9BH5@C:C::=79GD5795B8CH<9FH9B5BHG9FJ=79G=B7@I8=B;H9B5BH F9=A6IFG9A9BHGD5F?=B;5B8GHCF5;9GD579F9BH5@
.<9DFC8I7HG:CFCIF<CH9@G9;A9BH=B7@I89F9J9BI9G;9B9F5H98:FCAH<9 CD9F5H=CBGC:<CH9@DFCD9FH=9G5B8F9BH5@=B7CA9;9B9F5H98:FCA5;5F5;9@C75H988=F97H@M57FCGGH<9GHF99H:FCACB9C:H<9 <CH9@G
.<9=B7CA9:FCACIF@9B8=B;G9;A9BH=B7@I89G=B7CA9:FCAH<9M=9@85B8CH<9FF9@5H98:99=B7CA995FB98CBCIF@C5BG F979=J56@9

'424=C;HBBD4322>D=C8=6%A>=>D=24<4=CBK#B\$IB9H<9 -=GGI98-/(C
05(5*0(3 5:;9<4,5;:9,+0;6::,:\$670*?,(:<9,4,5;6-9,+0;6::,:6505(5*0(35:;9<4,5;:-/?K<=7<K5G GI6G9EI9BH@M5A9B8986M-/(C
C8=:=75H=CB#ADFCJ9A9BHGHC.CD=705(5*0(35:;9<4,5;:9,+0;6::,: T-/?U=B(CJ9A69F
-I6G9EI9BH@MH<9 -=GGI98-/(C
-/(C
-/(C ?-/(C
5B8-/(C
HCDFCJ=89588=H=CB5@;I=85B79CBH<97F98=H@CGG9GGH5B85F8
-/? 5B8H<9F9@5H98ID85H9G=ADFCJ9:=B5B7=5@F9DCFH=B;F9EI=F=B;ACF9H=A9@MF97C;B=H=CBC:7F98=H@CGG9GCB@C5BG5B8CH<9F :=B5B7=5@=BGHFIA9BHGH<5H5F9BCH577CIBH98:CF5H:5=FJ5@I9H<FCI;<B9H=B7CA9=B7@I8=B;@C5BG<9@8?:CF?=BJ9GHA9BH<9@8?HC? A5HIF=HM896HG97IF=H=9GB9H=BJ9GHA9BH=B@95G9G5B8CH<9FGI7<7CAA=HA9BHG
-/?F9EI=F9GH<5H:=B5B7=5@5GG9HG A95GIF985H5ACFH=N987CGH69DF9G9BH985HH<9B9H5ACIBH9LD97H98HC697C@@97H98H<FCI;<5B5@@CK5B79:CF7F98=H@CGG9GH<5H =G898I7H98:FCAH<95ACFH=N987CGH65G=G
.<95A9B8A9BHG=B-/?F9EI=F9H<9CAD5BMHCA95GIF95@@9LD97H98 7F98=H@CGG9G65G98IDCB<=GHCF=75@9LD9F=9B797IFF9BH7CB8=H=CBG5B8F95GCB56@95B8GIDDCFH56@9:CF975GHGH<5H5::97HH<9 7C@@97H56=@=HMC:H<9:=B5B7=5@5GG9HG5B89@=A=B5H9GH<9T=B7IFF98@CGGUA9H<C8C@C;MIB89F7IFF9BH!*
-/? 7@5F=:=98H<5HF979=J56@9G5F=G=B;:FCACD9F5H=B;@95G9G5F9BCHK=H<=BH<9G7CD9C:.CD=7

BGH958=AD5=FA9BHC:F979=J56@9G 5F=G=B;:FCACD9F5H=B;@95G9GG<CI@869577CIBH98:CF=B577CF85B79K=H<-/(C

&95G9G.CD=7T-U CFGA5@@9FF9DCFH=B;7CAD5B=9GDI6@=79BH=H=9GH<5H5F9BCH-:=@9FG5B89BH=H=9GH<5H5F9BCHDI6@=76IG=B9GG9BH=H=9GH<9 -/=G9::97H=J9:CF5BBI5@F9DCFH=B;D9F=C8G=B7@I8=B;=BH9F=AF9DCFH=B;D9F=C8GK=H<=BH<CG9D9F=C8G69;=BB=B;5:H9F 979A69F
5F@M58CDH=CB=GD9FA=HH98:CF5BBI5@F9DCFH=B;D9F=C8G=B7@I8=B;=BH9F=AF9DCFH=B;D9F=C8GK=H<=BH<CG9 D9F=C8G69;=BB=B;5:H9F979A69F
.<9CAD5BM<5GBCHM9H58CDH98-/?5B8H<9F9@5H98ID85H9G5B8 F9A5=BG=BH<9DFC79GGC:9J5@I5H=B;H<9=AD57HC:58CDH=CBC:H<=GB9K577CIBH=B;;I=85B79CBCIF7CBGC@=85H98:=B5B7=5@ GH5H9A9BHG

BI;IGHH<9 -=GGI98-/(C

(09&(3<,,(:<9,4,5;\$670* 0:*36:<9,9(4,>692 /(5.,:;6;/,0:*36:<9,",8<09,4,5;:-69(09&(3<,,(:<9,4,5;K<=7<9@=A=B5H9G588G5B8AC8=:=9G79FH5=B8=G7@CGIF9 F9EI=F9A9BHG:CF:5=FJ5@I9A95GIF9A9BHG
BH=H=9GK=@@BC@CB;9F69F9EI=F98HC8=G7@CG9H<95ACIBHC:5B8F95GCBG:CFHF5BG:9FG 69HK99B&9J9@5B8&9J9@C:H<9:5=FJ5@I9<=9F5F7<M6IHDI6@=79BH=H=9GK=@@69F9EI=F98HC8=G7@CG9H<9F5B;95B8K9=;<H98 5J9F5;9IG98HC89J9@CDG=;B=:=75BHIBC6G9FJ56@9=BDIHG:CF&9J9@:5=FJ5@I9A95GIF9A9BHG
CFDI6@=79BH=H=9GH<9-/=G 9::97H=J9:CF5BBI5@F9DCFH=B;D9F=C8G=B7@I8=B;=BH9F=AD9F=C8GK=H<=BH<CG9D9F=C8G69;=BB=B;5:H9F979A69F 5F@M58CDH=CB=GD9FA=HH98=B5BM=BH9F=AD9F=C85:H9F=GGI5B79C:H<9-/
1958CDH98-/(C
69;=BB=B;\$5BI5FM 5B8H<958CDH=CBC:GI7<-/8=8BCH<5J95A5H9F=5@=AD57HCBCIF7CBGC@=85H98:=B5B7=5@GH5H9A9BHG

B)7HC69FH<9 -=GGI98-/(C

,90=(;0=,:(5+,+.05.\$670* 5*3<:0656-;/,#,*<9,+ =,950./;05(5*05."(;,;/,D#"E=,950./;5+,?#>(7D#E"(;,(:(,5*/4(925;,9,:;"(;,-69,+., **6<5;05. <976:,:.<9;I=85B79D9FA=HGH<9IG9C:H<9)#-F5H965G98CBH<9-) ,5G5/
69B7<A5F?F5H9:CFDIFDCG9G C:5DD@M=B;<98;9577CIBH=B;
.<9-) ,=G5JC@IA9?K9=;<H98A98=5B=BH9F9GHF5H9H<5H=G75@7I@5H9885=@M65G98CBCJ9FB=;<H HF5BG57H=CBG:FCAH<9DF=CF85MVG57H=J=HM=BGD97=:=98G9;A9BHGC:H<9/
.F95GIFMF9DCA5F?9H

H<5G699BG9@97H985GH<9 DF9:9FF98F9D@579A9BH:CFH<9/

8C@@5F&CB8CB#BH9F65B?)::9F98,5H9T&#),UK<=7<K=@@69D<5G98CIH6MH<99B8C: CFDI6@=79BH=H=9GH<9-/=G9::97H=J9:CF5BBI5@F9DCFH=B;D9F=C8G=B7@I8=B;=BH9F=AD9F=C8GK=H<=BH<CG9D9F=C8G 69;=BB=B;5:H9F979A69F
5F@M58CDH=CB=GD9FA=HH98=B5BM=BH9F=AD9F=C85:H9F=GGI5B79C:H<9-/
1958CDH98 -/(C
69;=BB=B;CB\$5BI5FM5B8H<958CDH=CBC:GI7<-/8=8BCH<5J95A5H9F=5@=AD57HCBCIF 7CBGC@=85H98:=B5B7=5@GH5H9A9BHG

B979A69FH<9 -=GGI98-/(C

5*64,\$(?,:\$670*
#04730-@05.;/,**6<5;05.-69 5*64,\$(?,:K<=7<F9ACJ9G79FH5=B9L79DH=CBG:CF=BJ9GHA9BHG=BHF5D9F=C85@@C75H=CBG5B8=BH9F=A75@7I@5H=CBG5B8588G ;I=85B79HCF98I797CAD@9L=HM=B577CIBH=B;:CF=B7CA9H5L9G
CFDI6@=79BH=H=9GH<9-/=G9::97H=J9:CF5BBI5@F9DCFH=B; D9F=C8G=B7@I8=B;=BH9F=AD9F=C8GK=H<=BH<CG9D9F=C8G69;=BB=B;5:H9F979A69F
5F@M58CDH=CB=GD9FA=HH98=B5BM =BH9F=AD9F=C85:H9FH<9=GGI5B79C:H<9-/
1958CDH98-/(C
69;=BB=B;CB\$5BI5FM5B8H<958CDH=CBC: GI7<-/8=8BCH<5J95A5H9F=5@=AD57HCBCIF7CBGC@=85H98:=B5B7=5@GH5H9A9BHG

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients for various agreements and contracts that utilize the London Interbank Offered Rate ("LIBOR") as the benchmark reference rate. To be eligible for the optional expedients under this guidance, modifications of contractual terms that change, the amount or timing of contractual cash flows must be related to replacement of a reference rate. As it relates to the Company, the relevant optional expedient for contract modifications provides that entities can account for these modifications as a continuation of the existing contract without analysis. The ASU is effective for all business entities for interim and annual periods beginning on March 12, 2020 and provides for temporary relief through December 31, 2022. We adopted ASU No. 2020-04 beginning on January 1, 2020 and the adoption of such ASU did not have a material impact on our consolidated financial statements, and have not yet adopted the optional relief.

On April 10, 2020, the FASB issued a question-and-answer document (the "Q&A") to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of COVID-19. The lease modification guidance in Topic 842, Leases, (or Topic 840, Leases) would require the Company to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was made pursuant to the enforceable rights and obligations of the existing lease agreement (precluded from applying the lease modification accounting framework). However, the Q&A provides that the Company may bypass the lease by lease analysis if certain criteria are met, and instead elect to either consistently apply, or consistently not apply, the lease modification framework to groups of leases with similar characteristics and similar circumstances. As described below, the Company has elected not to apply the lease modification guidance to concessions related to the effects of COVID-19 that do not result in a substantial increase in our rights as lessor, including concessions that result in the total payments required by the modified lease being substantially the same as or less than the total payments required by the original lease.

During the year ended December 31, 2020, the Company provided rental concessions to certain tenants in response to the impact of COVID-19. The Company's rental concessions during the year ended December 31, 2020 primarily provided for a deferral of rental payments or the application of security deposits to rental payments and replenishment of such security deposits with no substantive changes to the consideration provided for in the original lease. Such changes affected the timing, but not the amount, of the rental payments. In accordance with the above, the Company is accounting for these deferrals as if no changes were made to the leases. The Q&A had no material impact on the Company's consolidated financial statements as of and for the year ended December 31, 2020; however, its future impact on the Company is dependent upon the extent of lease concessions granted to tenants as a result of COVID-19 in future periods and the elections made by the Company at the time of entering into such concessions.

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

#+()"#)(#'!())

BJ9GHA9BHG=BF95@9GH5H97CBG=GHC:H<9:C@@CK=B;

	424<14A
	=BH<CIG5B8G
&5B8
&5B8=ADFCJ9A9BHG
I=@8=B;G5B8=ADFCJ9A9BHG
IFB=HIF9:=LHIF9G5B89EI=DA9BH
.9B5BH=ADFCJ9A9BHG
1CF?=BDFC;F9GG
#BJ9GHA9BHG=BF95@9GH5H9
77IAI@5H9889DF97=5H=CB
(9H=BJ9GHA9BHG=BF95@9GH5H9

CFH<9M95FG9B898979A69F5B8K9F97CF89889DF97=5H=CB9LD9BG9C:
A=@@=CB A=@@=CB5B8
A=@@=CBF9GD97H=J9@M

)A0=B02C8>=BSIF=B;H<9M95F9B898979A69FK957EI=F985:99?G=AD@9=BH9F9GH=BH<9 :C@@CK=B;DFCD9FHM:FCA5BIBF9@5H98H<=F8?D5FHM

	BB4C 0C4>5			%DA270B4
%A>?4ACH	)H?4	2@D8B8C8>=	(@D0A444C		%A824 =BH<CIG5B8G
5GHH<-HF99HIGH=B.2	)::=79	(CJ9A69F

.F5BG57H=CB7CGHGH<5HK9F975D=H5@=N98=B7CBB97H=CBK=H<H<957EI=G=H=CBC:H<=GDFCD9FHMHCH5@98K<=7<5F9 BCH=B7@I898=BH<9DIF7<5G9DF=7956CJ9

.<9F9K9F9BC8=GDCG=H=CBG8IF=B;H<9M95F9B898979A69F

)A0=B02C8>=BS.<9F9K9F9BC57EI=G=H=CBG8IF=B;H<9M95F9B898979A69F

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

19GC@8:99?G=AD@9=BH9F9GHG=BH<9:C@@CK=B;DFCD9FH=9GHCIBF9@5H98H<=F8?D5FH=9G8IF=B;H<9M95F9B898 979A69F
.F5BG57H=CB7CGHGF9@5H98HCH<9G9G5@9GK9F99LD9BG985G=B7IFF98
.<9F9GI@HGC:CD9F5H=CBGC:H<9 DFCD9FH=9GK9GC@8<5J9699B=B7@I898=BH<97CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBGH<FCI;<957<DFCD9FH=9GF9GD97H=J9 8=GDCG=H=CB85H9

%A>?4ACH	BB4C)H?4	0C4>5(0;4	(@D0A4 44C	(0;4B%A824	)A0=B02C8>= >BCB	08=>= (0;4
					=BH<CIG5B8G
'5F7<)5?@5B8*FCD9FH=9G )5?@5B8	)::=79*5F?=B; !5F5;9	'5F7<
GH-HF99H 15G<=B;HCB	)::=79	'5F7<
.CKBG9B8-HF99H -5B F5B7=G7C	)::=79	'5F7<
FC58K5M )5?@5B8	)::=79	'5M
/B=CB-EI5F9*FCD9FH=9G 15G<=B;HCB	)::=79&5B8	\$I@M

.<9T'5F7<)5?@5B8*FCD9FH=9GU7CBG=GHC:"5FF=GCB-HF99H F5B?@=B-HF99H196GH9F-HF99H5B8 196GH9F-HF99H*5F?=B;!5F5;9

.<9T/B=CB-EI5F9*FCD9FH=9GU7CBG=GHC:(CFH<5D=HC@-HF99H(CFH<5D=HC@-HF99H5B8(CFH<5D=HC@ -HF99H
*F=CFHCH<9G5@9K989H9FA=B98H<5HH<96CC?J5@I9GC:GI7<DFCD9FH=9G9L799898H<9=F9GH=A5H98:5=FJ5@I9G5B8 F97C;B=N985B=AD5=FA9BH7<5F;9C:
A=@@=CB:CFH<9M95F9B898979A69F(CH9
)IF89H9FA=B5H=CB C:H<9:5=FJ5@I9GC:H<9G9DFCD9FH=9GK5G65G98CBB9;CH=5H=CBGK=H<H<9H<=F8?D5FHM6IM9F5B8H<97CBHF57HG5@9GDF=79 .<9;5=BCBG5@9=B7@I89GC:9LH=B;I=G<A9BHC:BCB7CBHFC@@=B;=BH9F9GHG5G5F9GI@HC:H<9G5@9

)A0=B02C8>=BSIF=B;H<9M95F9B898979A69FK957EI=F985:99?G=AD@9=BH9F9GH=B5BC::=79 DFCD9FHM?BCKB5G1=@G<=F9CI@9J5F8:FCA5BIBF9@5H98H<=F8?D5FHM
.<9DFCD9FHM<5G5DDFCL=A5H9@MGEI5F9:99H C:C::=79GD5795B8GEI5F9:99HC:F9H5=@GD5795B8=G@C75H98=B9J9F@M"=@@G5@=:CFB=5
.<957EI=G=H=CBK5G:IB898 K=H<DFC7998G:FCACIF-9F=9G&*F9:9FF98-HC7?C::9F=B;5B8H<957EI=F98DFCD9FHM=GF9DCFH985GD5FHC:H<9C::=79G9;A9BH (CH9

%A>?4ACH	BB4C )H?4	0C4>5 2@D8B8C8>=	(@D0A444C	%DA270B4 %A824
					=BH<CIG5B8G
1=@G<=F9CI@9J5F89J9F@M"=@@G	)::=79	\$5BI5FM

#B979A69F5HH<9H=A9K99BH9F98=BHCH<9DIF7<5G95B8G5@95;F99A9BHK9A5895
A=@@=CBBCB? F9:IB856@989DCG=HHC5B9G7FCK577CIBHH<5HK5G=B7@I898=BCH<9F5GG9HGCBCIF7CBGC@=85H9865@5B79G<99H5GC: 979A69F
.F5BG57H=CB7CGHGH<5HK9F975D=H5@=N98=B7CBB97H=CBK=H<H<957EI=G=H=CBC:H<=GDFCD9FHMHCH5@98 K<=7<5F9BCH=B7@I898=BH<9DIF7<5G9DF=7956CJ9

.<9F9K9F9BC8=GDCG=H=CBG8IF=B;H<9M95F9B898979A69F

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

.<9F9GI@HGC:CD9F5H=CBGC:H<9DFCD9FH=9GK957EI=F98<5J9699B=B7@I898=BH<97CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG :FCAH<985H9C:57EI=G=H=CB
.<9DIF7<5G9DF=79C:H<957EI=G=H=CBG7CAD@9H988IF=B;H<9M95FG9B898979A69F5B8 K9F9@9GGH<5BC:CIFHCH5@5GG9HG5GC:H<9F9GD97H=J9ACGHF979BH5BBI5@7CBGC@=85H98:=B5B7=5@GH5H9A9BHG:=@985HCF DF=CFHCH<985H9C:57EI=G=H=CB
.<9:C@@CK=B;H56@9GIAA5F=N9GH<9DIF7<5G9DF=795@@C75H=CBC:H<95:CF9A9BH=CB9857EI=G=H=CBG 8IF=B;H<9M95FG9B898979A69F5B8

	.40A=343424<14A
			=BH<CIG5B8G
&5B8				S
&5B8=ADFCJ9A9BHG				S
I=@8=B;G5B8=ADFCJ9A9BHG				S
.9B5BH=ADFCJ9A9BHG				S
7EI=F98=B?D@579@95G9G				S
7EI=F9856CJ9?A5F?9H@95G9G				S
7EI=F9869@CK?A5F?9H@95G9G				S
(9H5GG9HG57EI=F98				S

7EI=F98=B?D@579@95G9G<5J95K9=;<H985J9F5;95ACFH=N5H=CBD9F=C8C:M95FG:CF6CH<H<95B8 57EI=G=H=CBG

7EI=F9856CJ9?A5F?9H@95G9G<5J95K9=;<H985J9F5;95ACFH=N5H=CBD9F=C8C:M95FG5B8M95FG:CFH<95B8 57EI=G=H=CBGF9GD97H=J9@M

7EI=F9869@CK?A5F?9H@95G9G<5J95K9=;<H985J9F5;95ACFH=N5H=CBD9F=C8C:M95FG:CF6CH<H<95B8 57EI=G=H=CBG

%A>?4ACH>=24=CA0C8>=BS%5=G9F CIB85H=CB"95@H<*@5B#B7CFDCF5H98T%5=G9FUK<=7<C77ID=98GD579=BCB9C: CIF)5?@5B85@=:CFB=5DFCD9FH=9G577CIBH98:CF
C:CIF5BBI5@=N98F9BH5@=B7CA9:CFH<9M95F9B898979A69F

!\$#('+!

&C5BGF979=J56@97CBG=GHC:H<9:C@@CK=B;

	424<14A
	=BH<CIG5B8G
-5@C5BGF979=J56@9GI6>97HHC7F98=HF=G?
-5@C5BGF979=J56@9GI6>97HHC@C5B?657?98BCH9G
-5@C5BGF979=J56@95M7<97?FCH97H=CB*FC;F5A			S
-5@C5BGF979=J56@9GI6>97HHCG97IF986CFFCK=B;G
-5@C5BGF979=J56@9<9@8:CFG5@9
&C5BGF979=J56@9
9:9FF9875D=H5@=N987CGHGB9H
&C5B@CGGF9G9FJ9G
&C5BGF979=J56@9B9H

(0!>0=B'4248E01;4(D1942CC>A438C'8B:S,9DF9G9BHGH<9IB;I5F5BH998DCFH=CBGC:@C5BGCF=;=B5H98 IB89FH<9-5-A5@@IG=B9GG&C5B*FC;F5AK<=7<K9F9F9H5=B986MH<9CAD5BM

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

(0!>0=B'4248E01;4(D1942CC>!>0=02:43#>C4BS,9DF9G9BHGH<9IB;I5F5BH998DCFH=CBGC:@C5BG CF=;=B5H98IB89FH<9-5-A5@@IG=B9GG&C5B*FC;F5AK<=7<K9F9HF5BG:9FF98HC5HFIGH5B85F9<9@85G7C@@5H9F5@=B 7CBB97H=CBK=H<5G97IF=H=N5H=CBHF5BG57H=CB
.<9DFC7998GF979=J98:FCAH<9HF5BG:9F5F9F9:@97H985G@C5B?657?98BCH9GD5M56@9 (CH9
.9G9@C5BG5F9GI697HHC7F98=HF=G?

(0!>0=B'4248E01;4%0H2742:%A>C42C8>=%A>6A0<SB57H98=B'5F7<H<9CFCB5J=FIG=8,9@=9: 5B87CBCA=7-97IF=HM7HH<9T,-7HU=AD@9A9BH98H<9***5-5@C5BDFC;F5AH<5HDFCJ=89GGA5@@6IG=B9GG9G K=H<IB7C@@5H9F5@=N985B8IB;I5F5BH998@C5BG5H5B=BH9F9GHF5H9C:

.9@C5BGK=@@69:I@@M:CF;=J9BGI697HHC79FH5=B @=A=H5H=CBGK<9BIG986MH<96CFFCK9F:CFD5MFC@@7CGHG=BH9F9GHCBACFH;5;9GF9BH5B8IH=@=H=9G
CFH<CG9@C5BGH<5H5F9 :CF;=J9BH<9-K=@@F9A=HC:H<9F9A5=B=B;CIHGH5B8=B;DF=B7=D5@D@IG577FI98=BH9F9GHHCIG
CFH<CG9@C5BGK<CG9 6CFFCK9FG8CBCHA99HH<97F=H9F=5F9EI=F98:CF:CF;=J9B9GGF9D5MA9BHC6@=;5H=CBG7CAA9B795:H9FH<95DD@=756@989:9FA9BH D9F=C8=B9EI5@=BGH5@@A9BHGCJ9FH<9F9A5=B=B;H9FAHCA5HIF=HM
GI6GH5BH=5@DCFH=CBC:H<9@C5BGH<5HK9CF=;=B5H98IB89FH<9 ***<5J95HKC?M95FH9FA5B8CF=;=B5@@M<58589:9FA9BHD9F=C8C:G=LACBH<G<CK9J9F5G5F9GI@HC:5A9B8A9BHGHCH<9*** H<9G9@C5BGBCK5F989:9FF98:CFIDHCACBH<G
@@@C5BG5DDFCJ986MH<9-5:H9F\$IB9<5J95:=J9?M95FH9FA5B8 89:9FA9BHD9F=C8C:ACBH<G
&C5BGCF=;=B5H98IB89FH<9***5F9:I@@M;I5F5BH9986MH<9-DFCJ=898H<5HCF=;=B5H=B; @9B89FG:C@@CKH<9F9EI=F9A9BHGG9H:CFH<H<9F9=B
77CF8=B;@MH<9F9=GBC7F98=HF=G?5GGC7=5H98K=H<H<9G9@C5BGG=B79H<9- <5G;I5F5BH998D5MA9BHC:H<9DF=B7=D5@5B8=BH9F9GH (9=H<9FH<9;CJ9FBA9BHBCF@9B89FG7<5F;986CFFCK9FG5BM:99G=B 7CBB97H=CBK=H<H<9***@C5BG<CK9J9FH<9-D5=8@9B89FG5:99IDCB:IB8=B;@C5BGIB89FH<9***

G5-5@=79BG99K95F95B5IH<CF=N98@9B89FIB89FH<9***5B8<5J9CF=;=B5H98
A=@@=CB@C5BGIB89FH<9 DFC;F5AK=H<
A=@@=CBCIHGH5B8=B;5GC:979A69F
199LD97H5G=;B=:=75BHDCFH=CBC:H<9G9@C5BGK=@@69 :CF;=J9B5B8F9D5=89=H<9F=BD5FHCF=B:I@@6MH<9-=B7@I8=B;6CH<DF=B7=D5@5B8577FI98=BH9F9GH

(0!>0=B'4248E01;4(D1942CC>(42DA43>AA>F8=6BS,9DF9G9BHGH<9;CJ9FBA9BH;I5F5BH998DCFH=CBGC: @C5BGCF=;=B5H98IB89FH<9-5-A5@@IG=B9GG&C5B*FC;F5AK<=7<K9F9GC@8K=H<H<9DFC7998GF979=J98:FCAH<9G5@9 F9:@97H985GG97IF986CFFCK=B;GS;CJ9FBA9BH;I5F5BH998@C5BG
.<9F9=GBC7F98=HF=G?5GGC7=5H98K=H<H<9G9@C5BGG=B79H<9 -<5G;I5F5BH998D5MA9BHC:H<9DF=B7=D5@

(0!>0=B'4248E01;44;35>A(0;4S,9DF9G9BHGH<9;CJ9FBA9BH;I5F5BH998DCFH=CBC:@C5BG<9@8:CFG5@95H H<99B8C:H<9D9F=C8CFH<5H<58699BGC@86IH=BF9GD97HC:K<=7<DFC7998G<58BCH699BF979=J985GC:H<99B8C:H<9D9F=C8

\$C74A

GC:979A69F5B8CIF@C5BGGI6>97HHC7F98=HF=G?K9F9
5B8
F9GD97H=J9@M7CB79BHF5H98 =BH<9CGD=H5@=HM=B8IGHFM GC:979A69F5B8 5B8 F9GD97H=J9@MC:CIF@C5BGGI697HHC7F98=H F=G?K9F97IFF9BH
197@5GG=:M@C5BGK=H<B9;5H=J97<5F57H9F=GH=7G=BGI6GH5B85F875H9;CF=9GF5B;=B;:FCAGD97=5@A9BH=CBHC 8CI6H:I@
GC:979A69F5B8
A=@@=CB5B8
A=@@=CBF9GD97H=J9@MC:@C5BGGI6>97HHC7F98=HF=G?K9F9 7@5GG=:=98=BGI6GH5B85F875H9;CF=9G

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

\$)'#)#!(()(#!!)(

G7<98I@9C:CIF=BH5B;=6@95GG9HG5B8@=56=@=H=9G5B8F9@5H98577IAI@5H985ACFH=N5H=CB5B8577F9H=CB5GC: 979A69F5B8=G5G:C@@CKG

	B>5424<14A
	=BH<CIG5B8G
=C0=681;4;40B40BB4CB
7EI=F98=B?D@579@95G9GB9HC:577IAI@5H985ACFH=N5H=CBC:5B8 F9GD97H=J9@M6CH<K=H<5B5J9F5;9IG9:I@@=:9C:M95FG
7EI=F9856CJ9?A5F?9H@95G9GB9HC:577IAI@5H985ACFH=N5H=CBC:5B8 F9GD97H=J9@MK=H<5B5J9F5;9IG9:I@@=:9C:5B8M95FGF9GD97H=J9@M
.F589B5A95B8@=79BG9
.CH5@=BH5B;=6@9@95G95GG9HGB9H
=C0=681;4;40B4;8018;8C84B
7EI=F9869@CK?A5F?9H@95G9GB9HC:577IAI@5H985ACFH=N5H=CBC:5B8 F9GD97H=J9@M6CH<K=H<5B5J9F5;9IG9:I@@=:9C:M95FG

ACFH=N5H=CBC:H<957EI=F9856CJ9?A5F?9H@95G9G=GF97CF8985G5F98I7H=CBHCF9BH5@5B8CH<9FDFCD9FHM=B7CA95B8 5ACFH=N5H=CBC:H<957EI=F98=B?D@579@95G9G=G=B7@I898=B89DF97=5H=CB5B85ACFH=N5H=CB=BH<9577CAD5BM=B;7CBGC@=85H98 GH5H9A9BHGC:CD9F5H=CBG
ACFH=N5H=CBC:H<957EI=F9869@CK?A5F?9H@95G9G=GF97CF8985G5B=B7F95G9HCF9BH5@5B8CH<9F DFCD9FHM=B7CA9=BH<9577CAD5BM=B;7CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG

IF=B;H<9M95FG9B898979A69F5B8K9F97C;B=N985ACFH=N5H=CBF9@5H98HCCIF=BH5B;=6@9 5GG9HG5B8@=56=@=H=9G5G:C@@CKG

	.40A=343424<14A
			=BH<CIG5B8G
7EI=F9856CJ9?A5F?9H@95G95ACFH=N5H=CB
7EI=F98=B?D@579@95G95ACFH=N5H=CB
7EI=F9869@CK?A5F?9H@95G95ACFH=N5H=CB

G7<98I@9C::IHIF95ACFH=N5H=CB5B8577F9H=CBC:57EI=G=H=CB?F9@5H98=BH5B;=6@95GG9HG5B8@=56=@=H=9G5GC: 979A69F=G5G:C@@CKG

	BB4CB	!8018;8C84B
	2@D8A43	2@D8A43	2@D8A43 4;>F"0A:4C
	1>E4"0A:4C	=%;024
.40AB=38=6424<14A	!40B4B	!40B4B	!40B4B
		=BH<CIG5B8G
			S
			S
.<9F95:H9F
	S		S

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

6. DEBT

The following table summarizes the debt balances as of December 31, 2020 and 2019, and the debt activity for the year ended December 31, 2020 (in thousands):

		During the Year Ended December 31, 2020
	Balances as of December 31, 2019	Debt Issuances & Assumptions	Repayments ર્દ્ર Modifications	Accretion & (Amortization)	Balances as of December 31, 2020
Mortgage Payable:
Outstanding Balance	S 97,100	S	S	S	S 97,100
Deferred loan costs - Mortgage Payable	(174)			27	(147)
Total Mortgage Payable	96,926			27	96,953
Secured Borrowings - Government Guaranteed Loans:
Outstanding Balance	12,152		(3,695)		8,457
Unamortized premiums	629			(172)	457
Total Secured Borrowings- Government Guaranteed Loans	12,781		(3,695)	(172)	8,914
Other Debt:
2018 revolving credit facility	153,000	61,500	(48,000)		166,500
2020 unsecured revolving credit facility
Junior subordinated notes	27,070				27,070
SBA 7(a) loan-backed notes	22,282		(8,052)		14,230
Borrowed funds from the Federal Reserve through the Paycheck Protection Program Liquidity Facility		16,016	(1,532)		14,484
Deferred loan costs - other debt
(1)	(2,867)	(734)	281	1,165	(2,155)
Discount on junior subordinated notes	(1,771)			88	(1,683)
Total Other Debt	197,714	76,782	(57,303)	1,253	218,446
Total Debt, Net	S 307,421	76,782 ਦੇ ਰੋ	S (60,998)	1,108 ર્સ્વિ	324,313 ਦਿੱਤੇ

(1) extinguishment of debt of \$281,000 during the year ended December 31, 2020.

Mortgages Payable-The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents. As of December 31, 2020, the Company's mortgages payable had a fixed interest rate of 4.14% per annum, with monthly payments of interest only, due on July 1, 2026. The loan is nonrecourse.

Secured Borrowings-Government Guaranteed Loans-Secured borrowings-government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral. These loans included cash premiums that are amortized as a reduction to interest expense over the life of the effective interest method and are fully amortized when the underlying loan is repaid in full. As of December 31, 2020, the Company had secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread of \$5.7 million, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.87%, and secured borrowing principal on SBA 7(a) loans sold for excess spread of \$2.7 million, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.56%.

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

2018 Revolving Credit Facility-In October 2018, CIM Commercial entered into a secured revolving credit facility with a bank syndicate that, as amended, allows CIM Commercial to borrow up to \$209.5 million, subject to a borrowing base calculation (the "2018 revolving credit facility"). In September 2020, the 2018 revolving credit facility was amended (the "2018 Credit Facility Modification") to remedy the effect that COVID-19 had on CIM Commercial's ability to borrow under the 2018 revolving credit facility during the period from September 2, 2020 through June 30, 2021 (the "Deferral Period"). The 2018 revolving credit facility bears interest (i) during the Deferral Period at (A) the base rate plus 1.05% or (B) LIBOR plus 2.05% and (ii) after the Deferral Period, at (A) the base rate plus 0.55% or (B) LIBOR plus 1.55%. As of December 31, 2020 and 2019, the variable interest rate was 2.20% and 3.29%, respectively. The 2018 revolving credit facility is also subject to an unused commitment fee of 0.15% or 0.25% depending on the amount of aggregate unused commitments. The 2018 revolving credit facility is secured by deeds of trust on certain of our properties. During the Deferral Period, our borrowing capacity is subject to a \$15.0 million reserve, which may be reduced by certain capital expenditures made in respect of our properties securing the 2018 revolving credit facility, and the requirement that we maintain a minimum balance of "liquid assets" of \$15.0 million, which are defined as (1) unencumbered cash and (2) up to \$5.0 million unfunded availability under the 2018 revolving credit facility. Other than as described in the preceding sentence, the 2018 revolving credit facility contains customary covenants and is not subject to any financial covenants (though the mount we may borrow under the 2018 revolving credit facility is determined by a borrowing base calculation). The 2018 revolving credit facility matures in October 2022 and provides for one one-year extension option under certain conditions. As of December 31, 2020 and 2019, \$166.5 million and \$153.0 million, respectively, was outstanding under the 2018 revolving credit facility, and approximately \$28.0 million and \$73.9 million, respectively, was available for future borrowings.

2020 Revolving Credit Facility-In May 2020, to further enhance its liquidity position and maintain financial flexibility, CIM Commercial entered into an unsecured revolving credit facility with a bank (the "2020 unsecured revolving credit facility") pursuant to which CIM Commercial can borrow up to a maximum of \$10.0 million. Outstanding advances under the 2020 unsecured revolving credit facility bear interest at the rate of 1.00%. CIM Commercial also pays a revolving credit facility fee of 1.12% with each advance under the 2020 unsecured revolving credit facility, which fee is subject to a cap of \$112,000 in the aggregate. The 2020 unsecured revolving credit facility contains certain customary covenants including a maximum leverage ratio and a minimum fixed charge coverage ratio, as well as certain other conditions. The 2020 unsecured revolving credit facility matures in May 2022. As of December 31, 2020, \$0 was outstanding under the 2020 unsecured revolving credit facility and \$10.0 million was available for future borrowings.

Junior Subordinated Notes—The Company has junior subordinated notes with a variable interests quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. The junior subordinated balance is due at maturity on March 30, 2035. The junior subordinated notes may be redeemed at par at our option.

SBA 7(a) Loan-Backed Notes-SBA 7(a) loan-backed notes are secured by deeds of trust or mortgages. On May 30, 2018, we completed a securitization of the unguaranteed portion of certain of our SBA 7(a) loans receivable with the issuance of \$38.2 million of unguaranteed SBA 7(a) loan-backed notes. The SBA 7(a) loan-backed notes are collateralized solely by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of our SBA 7(a) loans receivable. The SBA 7(a) loan-backed notes mature on March 20, 2043, with monthly payments on the collateralized loans are received. Based on the anticipated repayments of our collateralized SBA 7(a) loans, at issuance, we estimated the weighted average life of the SBA 7(a) loan-backed notes to be approximately two years. The SBA 7(a) loanbacked notes bear interest at the lower of the one-month LIBOR plus 1.40% or the prime rate less 1.08%. We reflect the SBA 7(a) loans receivable as assets on our consolidated balance sheets and the SBA 7(a) loan-backed notes as debt on our consolidated balance sheets. The restricted cash on our consolidated balance sheets as of December 31, 2020 and 2019 included \$1.2 million and \$3.3 million, respectively, of funds related to our SBA 7(a) loan-backed notes.

Paycheck Protection Program Liquidity Facility-In June 2020, we borrowed funds from the Federal Reserve through the PPP Liquidity Facility (the "PPPLF"). Advances under the PPPLF carry an interest rate of 0.35%, are made on a dollar-for-dollar basis based on the amount of loans originated under the PPP and are secured by loans made by us under the PPP. The PPPLF contains customary covenants but is not subject to any financial covenants. The maturity date of PPPLF borrowings is the same as the maturity date of the loans pledged to secure the extension of credit, generally two years. At maturity, both principal and accrued interest are due. The maturity date of a PPPLF borrowing will be accelerated if, among other things, we have been reimbursed by the SBA for a loan forgiveness (to the forgiveness), we have received payment from the SBA representing exercise of the loan guarantee or we have received payment from the underlying borrower (to the extent of the payment received). No new extensions of credit will be made under the PPPLF after June 30, 2021 unless the Federal Reserve Board and the United States Department of the Treasury decide to extend the PPPLF. We borrowed money

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

IB89FH<9***& HC:=B5B795@@H<9@C5BGK9CF=;=B5H98IB89FH<9***
GC:979A69F
A=@@=CBK5GCIHGH5B8=B; IB89FH<9***&

9:9FF98@C5B7CGHGK<=7<F9DF9G9BH@9;5@5B8H<=F8?D5FHM:99G=B7IFF98=B7CBB97H=CBK=H<CIF6CFFCK=B;57H=J=H=9G 5F975D=H5@=N985B85ACFH=N98HC=BH9F9GH9LD9BG9CB5GHF5=;<H?@=B965G=GCJ9FH<9@=:9C:H<9F9@5H98@C5B5DDFCL=A5H=B;H<9 9::97H=J9=BH9F9GHA9H<C8
9:9FF98@C5B7CGHG5F9DF9G9BH98=BH<956CJ9H56@9B9HC:577IAI@5H985ACFH=N5H=CB5B85F95 F98I7H=CBHCHCH5@896H

GC:979A69F5B8577FI98=BH9F9GH5B8IBIG987CAA=HA9BH:99GD5M56@9C:5B8 F9GD97H=J9@M5F9=B7@I898=B577CIBHGD5M56@95B8577FI989LD9BG9G

IHIF9DF=B7=D5@D5MA9BHGCBCIF896H:579J5@I95GC:979A69F5F95G:C@@CKG

.40AB=38=6424<14A	(42DA43 ">AC6064B >AA>F8=6B %A8=28?0; %0H01;4		'4E>;E8=6 A438C028;8CH =BH<CIG5B8G		\$C74A		)>C0;
		S			S
		S
		S			S
		S			S
		S			S
.<9F95:H9F					S

*F=B7=D5@D5MA9BHGCBG97IF986CFFCK=B;G5B8-5@C5B?657?98BCH9GK<=7<5F9=B7@I898=B)H<9F5F9;9B9F5@@M 89D9B89BHIDCB75G<:@CKGF979=J98:FCAH<9IB89F@M=B;@C5BG
)IF9GH=A5H9C:H<9=FF9D5MA9BH=G65G98CBG7<98I@98 D5MA9BHGCBH<9IB89F@M=B;@C5BG
)IF9GH=A5H9K=@@8=::9F:FCA57HI5@5ACIBHGHCH<99LH9BHK99LD9F=9B79 DF9D5MA9BHG5B8CF@C5B@=EI=85H=CBGCF7<5F;9?C::G
(CD5MA9BH=G8I9IB@9GGD5MA9BHG5F9F979=J98:FCAH<9 6CFFCK9FGCBH<9IB89F@M=B;@C5BG

,9DF9G9BHGH<9>IB=CFGI6CF8=B5H98BCH9G-5@C5B?657?98BCH9G5B86CFFCK98:IB8G:FCAH<9 989F5@,9G9FJ9 H<FCI;<H<9***&

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

()\$ (\$"%#()\$#%!#(

)BDF=@H<9CAD5BMVG6C5F8C:8=F97HCFGH<9TC5F8C:=F97HCFGUIB5B=ACIG@M5DDFCJ98H<9#' CAA9F7=5@.FIGHCFDCF5H=CBEI=HM#B79BH=J9*@5BH<9TEI=HM#B79BH=J9*@5BUK<=7<K5G5DDFCJ986MH<9 CAD5BMVGGHC7?<C@89FG
/B89FH<9EI=HM#B79BH=J9*@5BH<9CAD5BM;F5BH985K5F8GC:F9GHF=7H98G<5F9GC:CAACB -HC7?HC957<C:H<9=B89D9B89BHA9A69FGC:H<9C5F8C:=F97HCFG
GIAA5FMC:H<9CAD5BMVGF9GHF=7H98G<5F9G5GC: 979A69F5B85B8H<97<5B;9G8IF=B;H<9M95FG9B898=G5G:C@@CKG

			,4867C43
	#D<14A		E4A064A0=C
	>5	0C408A+0;D4
	(70A4B		%4A(70A4
5@5B79\$5BI5FM
!F5BH98
09GH98
5@5B79979A69F
!F5BH98
09GH98
5@5B79979A69F
!F5BH98
09GH98
5@5B79979A69F

ACIBHG<5J9699B58>IGH98HC;=J9F9HFC57H=J99::97HHCH<9,9J9FG9-HC7?-D@=H

CAD9BG5H=CB9LD9BG9F9@5H98HCH<9G9F9GHF=7H98G<5F9GC:CAACB-HC7?=GF97C;B=N98CJ9FH<9J9GH=B;D9F=C85B8 ;9B9F5@@MJ9GHG65G98CBCB9M95FC:7CBH=BICIGG9FJ=79
.<9CAD5BMF97CF8987CAD9BG5H=CB9LD9BG9F9@5H98HCH<9G9 F9GHF=7H98G<5F9GC:CAACB-HC7?=BH<95ACIBHC:5B8:CFH<9M95FG9B898979A69F 5B8F9GD97H=J9@M

GC:979A69FH<9F9K5GC:HCH5@IBF97C;B=N987CAD9BG5H=CB9LD9BG9F9@5H98HCG<5F9GC: CAACB-HC7?K<=7<K=@@69F97C;B=N98F5H56@MCJ9FH<9F9A5=B=B;J9GH=B;D9F=C8
.<99GH=A5H98:5=FJ5@I9C:F9GHF=7H98G<5F9G J9GH988IF=B;5B8K5G5B8F9GD97H=J9@M

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

'##(%'('L%(M

.<9:C@@CK=B;H56@9F97CB7=@9GH<9BIA9F5HCF5B889BCA=B5HCFIG98=B7CADIH=B;CIF65G=75B88=@IH98D9F?G<5F9 5ACIBHG:CFB9H@CGG=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FG:CFH<9M95FG9B898979A69F5B8

	.40A=343424<14A
		=BH<CIG5B8G9L79DHD9FG<5F95ACIBHG
#D<4A0C>A
(9H@CGG=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FG
,9899A56@9DF9:9FF98GHC7?8=J=89B8G897@5F98CB8=@IH=J9G<5F9G						S
=@IH98B9H@CGG=B7CA95HHF=6IH56@9HC7CAACBGHC7?<C@89FG
4=><8=0C>A
5G=7K9=;<H985J9F5;9G<5F9GC:CAACB-HC7?CIHGH5B8=B;
::97HC:8=@IH=J9G97IF=H=9GS7CBH=B;9BH@M=GGI56@9G<5F9G		S				S
=@IH98K9=;<H985J9F5;9G<5F9G5B87CAACBGHC7?9EI=J5@9BHG CIHGH5B8=B;
#4C;>BB8=2><40CCA81DC01;4C>2><<>=BC>2:7>;34AB?4AB70A4
5G=7
=@IH98

.<97CADIH5H=CBGC:65G=7*-5F965G98CBCIFK9=;<H985J9F5;9G<5F9GCIHGH5B8=B;
.<97CADIH5H=CBC:8=@IH98*- 8C9GBCH=B7@I89CIHGH5B8=B;G<5F9GC:-9F=9G*F9:9FF98-HC7?:CFH<9M95F9B898979A69F6975IG9H<9=F=AD57H K5G899A98HC695BH=?8=@IH=J9
)IHGH5B8=B;-9F=9G*F9:9FF9815FF5BHGK9F9BCH=B7@I898=BH<97CADIH5H=CBC:8=@IH98*- :CFH<9M95FG9B898979A69F5B86975IG9H<9=F=AD57HK5G9=H<9F5BH=?8=@IH=J9CFGI7<K5FF5BHGK9F9BCH 9L9F7=G56@98IF=B;GI7<D9F=C8G(CH9
(CG<5F9GC:-9F=9G*F9:9FF98-HC7?CIHGH5B8=B;5GC:979A69F<585 8=@IH=J99::97H5B8BCG<5F9GC:-9F=9G*F9:9FF98-HC7?K9F9CIHGH5B8=B;5GC:979A69F5B8
)IHGH5B8=B; G<5F9GC:-9F=9G&*F9:9FF98-HC7?K9F9BCH=B7@I898=BH<97CADIH5H=CBC:8=@IH98*-:CFH<9M95FG9B898979A69F 5B86975IG9GI7<G<5F9GK9F9BCHF9899A56@98IF=B;GI7<D9F=C8G

*-:CFH<9M95F?HC?85H9D9F=C8A5M8=::9F:FCAH<9GIAC:EI5FH9F@M*-5ACIBHG8I9HCH<9F9EI=F98A9H<C8:CF 7CADIH=B;*-=BH<9F9GD97H=J9D9F=C8G

B588=H=CB*-=G75@7I@5H98=B89D9B89BH@M:CF957<7CADCB9BH5B8A5MBCH69 588=H=J98I9HCFCIB8=B;

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

'"!%'''()\$

.<9H56@969@CKDFCJ=89G=B:CFA5H=CBF9;5F8=B;H<9=GGI5B79GF97@5GG=:=75H=CBG5B8F989ADH=CBGC:957<7@5GGC:H<9 CAD5BMVGDF9:9FF98GHC7?=BD9FA5B9BH9EI=HM8IF=B;H<9M95FG9B898979A69F5B88C@@5F5ACIBHG=B H<CIG5B8G

	%A454AA43(C>2:
	(4A84B			(4A84B		(4A84B!			)>C0;
	(70A4B	<>D=C	(70A4B	<>D=C		(70A4B	<>D=C		(70A4B		<>D=C
0;0=24B424<14A			S		S
,97@5GG=:=75H=CBC:-9F=9G *F9:9FF98-HC7?HC D9FA5B9BH9EI=HM			S		S	S		S
,989ADH=CBC:-9F=9G *F9:9FF98-HC7?			S		S	S		S
0;0=24B424<14A			S		S
,9DIF7<5G9C:-9F=9G& *F9:9FF98-HC7?	S	S	S		S
,97@5GG=:=75H=CBC:-9F=9G *F9:9FF98-HC7?HC D9FA5B9BH9EI=HM			S		S	S		S
,989ADH=CBC:-9F=9G *F9:9FF98-HC7?			S		S	S		S
0;0=24B424<14A			S		S
#GGI5B79C:-9F=9G *F9:9FF98-HC7?	S	S				S		S
,97@5GG=:=75H=CBC:-9F=9G *F9:9FF98-HC7?HC D9FA5B9BH9EI=HM			S		S	S		S
,989ADH=CBC:-9F=9G *F9:9FF98-HC7?			S		S	S		S
0;0=24B424<14A

GC:979A69FK9<58=GGI98=BF9;=GH9F98DI6@=7C::9F=B;GG<5F9GC:-9F=9G*F9:9FF98-HC7? -9F=9G*F9:9FF9815FF5BHG5B8G<5F9GC:-9F=9G*F9:9FF98-HC7?5B8F979=J98;FCGGDFC7998GC: A=@@=CB
A=@@=CBC:K<=7<K5G5@@C75H98HCH<9-9F=9G*F9:9FF98-HC7?C:K<=7<K5G5@@C75H98HCH<9-9F=9G *F9:9FF9815FF5BHG5B8C:K<=7<K5G5@@C75H98HCH<9-9F=9G*F9:9FF98-HC7?5B8588=H=CB5@@M<58=GGI98 G<5F9GC:-9F=9G*F9:9FF98-HC7?5GD5MA9BH:CFG9FJ=79GHCH<98A=B=GHF5HCF:CFK<=7<BC75G<DFC7998GK9F9F979=J98

B 7CBB97H=CBK=H<GI7<=GGI5B797CGHGGD97=:=75@@M=89BH=:=56@9HCH<9C::9F=B;C:-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98 15FF5BHG5B8-9F=9G*F9:9FF98-HC7?GI7<5G7CAA=GG=CBG895@9FA5B5;9F:99G5B8CH<9FC::9F=B;:99G5B89LD9BG9GHCH5@98 A=@@=CB

A=@@=CBC:K<=7<K5G5@@C75H98HCH<9-9F=9G*F9:9FF98-HC7?C:K<=7<K5G5@@C75H98HCH<9 -9F=9G*F9:9FF9815FF5BHG5B8C:K<=7<K5G5@@C75H98HCH<9-9F=9G*F9:9FF98-HC7?

B588=H=CB5GC: 979A69FBCB?=GGI5B79?GD97=:=77CGHGF9@5H98HCH<=GC::9F=B;HCH5@98

A=@@=CB
GC:979A69FK9<5J9 F97@5GG=:=985B85@@C75H98
A=@@=CB5B8:FCA89:9FF987<5F;9GHC-9F=9G*F9:9FF98-HC7?-9F=9G *F9:9FF9815FF5BHG5B8-9F=9G*F9:9FF98-HC7?F9GD97H=J9@M5G5F98I7H=CBHCH<9;FCGGDFC7998GF979=J98
-I7< F97@5GG=:=75H=CBK5G65G98CBH<97IAI@5H=J9BIA69FC:G97IF=H=9G=GGI98F9@5H=J9HCH<9A5L=AIABIA69FC:G97IF=H=9G9LD97H98 HC69=GGI98IB89FH<9C::9F=B;
GC:979A69FH<9F9K9F9G<5F9GC:-9F=9G*F9:9FF98-HC7?CIHGH5B8=B; -9F=9G*F9:9FF9815FF5BHGHCDIF7<5G9G<5F9GC:CAACB-HC7?CIHGH5B8=B;5B8G<5F9GC: -9F=9G*F9:9FF98-HC7?CIHGH5B8=B;
GC:979A69FG<5F9GC:-9F=9G*F9:9FF98-HC7?5B8BCG<5F9GC: -9F=9G*F9:9FF98-HC7?<5J9699BF9899A98

(4A84B%A454AA43(C>2:S197CB8I7H9857CBH=BICIGDI6@=7C::9F=B;C:-9F=9G*F9:9FF98/B=HG:FCA)7HC69F H<FCI;<\$5BI5FMK<9F9957<-9F=9G*F9:9FF98/B=H7CBG=GH98C:CB9G<5F9C:-9F=9G*F9:9FF98-HC7?D5FJ5@I9 D9FG<5F9C:H<9CAD5BMK=H<5B=B=H=5@GH5H98J5@I9C:
D9FG<5F9GI6>97HHC58>IGHA9BH5B8CB9K5FF5BHHC

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

DIF7<5G9
C:5G<5F9C:CAACB-HC7?
*FC7998G5B89LD9BG9G:FCAH<9G5@9C:H<9-9F=9G*F9:9FF98/B=HGK9F95@@C75H98 HCH<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF9815FF5BHGIG=B;H<9=FF9@5H=J9:5=FJ5@I9GCBH<985H9C:=GGI5B79

-=B79 96FI5FMK9<5J9699B7CB8I7H=B;57CBH=BICIGDI6@=7C::9F=B;K=H<F9GD97HHCG<5F9GC:CIF-9F=9G *F9:9FF98-HC7?K<=7<G=B79GI7<H=A9=GBC@CB;9F69=B;=GGI985G5IB=HK=H<5B577CAD5BM=B;-9F=9G*F9:9FF9815FF5BH

(9HDFC7998G:FCAH<9=GGI5B79C:G<5F9GC:-9F=9G*F9:9FF98-HC7?5F9=B=H=5@@MF97CF898=BH9ADCF5FM9EI=HM5H5B 5ACIBH9EI5@HCH<9;FCGGDFC7998G5@@C75H98HCGI7<G<5F9GC:-9F=9G*F9:9FF98-HC7?A=BIGH<97CGHGGD97=:=75@@M=89BH=:=56@9 HCH<9=GGI5B79C:GI7<G<5F9G5B8H<9BCB?=GGI5B79GD97=:=7C::9F=B;7CGHG5@@C75H98HCGI7<G<5F9G

:H<9B9HDFC7998G:FCAH<9 =GGI5B79C:G<5F9GC:-9F=9G*F9:9FF98-HC7?5F9@9GGH<5BH<9F989ADH=CBJ5@I9C:GI7<G<5F9G5HH<9H=A9H<9M5F9=GGI98CF=: H<9F989ADH=CBJ5@I9C:GI7<G<5F9GGI6G9EI9BH@M697CA9G;F95H9FH<5BH<975FFM=B;J5@I9C:GI7<G<5F9G5B58>IGHA9BH=G F97CF898HC=B7F95G9H<975FFM=B;5ACIBHC:GI7<G<5F9GHCH<9=FF989ADH=CBJ5@I95GC:H<965@5B79G<99H85H9

-I7<58>IGHA9BH =G7CBG=89F985899A988=J=89B8:CFDIFDCG9GC:75@7I@5H=B;65G=75B88=@IH98*IF=B;H<9M95F9B898979A69F K9F97CF898F9899A56@9DF9:9FF98GHC7?899A988=J=89B8GC:F9@5H98HCGI7<58>IGHA9BHG
(CGI7<58>IGHA9BHGK9F9 F97CF8988IF=B;H<9M95FG9B898979A69F5B8

)BH<9:=FGH5BB=J9FG5FMC:H<9=GGI5B79C:5D5FH=7I@5FG<5F9C:-9F=9G*F9:9FF98-HC7?K9F97@5GG=:MGI7<G<5F9C: -9F=9G*F9:9FF98-HC7?:FCAH9ADCF5FM9EI=HMHCD9FA5B9BH9EI=HM6975IG9H<9:95HIF9;=J=B;F=G9HCH9ADCF5FM9EI=HM 7@5GG=:=75H=CBH<9F9EI=F9A9BHHCG5H=G:MF989ADH=CBF9EI9GHG=B75G<@5DG9GCBH<9:=FGH5BB=J9FG5FM85H9
GC:979A69F K9<5J9F97@5GG=:=985B5;;F9;5H9C:
A=@@=CB=BB9HDFC7998G:FCAH9ADCF5FM9EI=HMHCD9FA5B9BH9EI=HM

(4A84B%A454AA43(C>2:S-=B79 96FI5FMK9<5J9699B7CB8I7H=B;57CBH=BICIGDI6@=7C::9F=B;K=H<F9GD97H HCG<5F9GC:CIF-9F=9G*F9:9FF98-HC7?D5FJ5@I9
D9FG<5F9GI6>97HHC58>IGHA9BH
.<9G9@@=B;DF=79C:H<9-9F=9G *F9:9FF98-HC7?K5G
D9FG<5F9:CF5@@G5@9GH<5HC77IFF98:FCAH<969;=BB=B;C:H<9C::9F=B;HC5B8=B7@I8=B;\$IB9 5B8=G9LD97H98HC695B8G=B79\$IB9<5G699B
D9FG<5F9H<FCI;<H<99B8C:H<9@=:9C:H<9C::9F=B; -<5F9GC:-9F=9G*F9:9FF98-HC7?5F9F97CF898=BD9FA5B9BH9EI=HM5HH<9H=A9C:H<9=F=GGI5B79

(4A84B!%A454AA43(C>2:S)B(CJ9A69FK9=GGI98G<5F9GC:-9F=9G&*F9:9FF98-HC7?<5J=B;5B =B=H=5@GH5H98J5@I9C:
D9FG5F9T-9F=9G&42F9:9FF98-HC7?-H5H9805@I9UGI697HHC58>IGHA9BH
19F979=J98;FCGG DFC7998GC:
A=@@=CB:FCAH<9G5@9C:H<9-9F=9G&*F9:9FF98-HC7?K<=7<K5GF98I7986M=GGI5B79?GD97=:=7C::9F=B;7CGHG GI7<5G7CAA=GG=CBG895@9FA5B5;9F:99G5B8CH<9FC::9F=B;:99G5B89LD9BG9GHCH5@=B;
A=@@=CB58=G7CIBHC: A=@@=CB5B8BCB?=GGI5B79?GD97=:=77CGHGC:
A=@@=CB
.<9G9:99G<5J9699BF97CF8985G5F98I7H=CBHCH<9;FCGGDFC7998G=B D9FA5B9BH9EI=HM

)B)7HC69FH<9CAD5BM7CAA9B7985H9B89FC::9F:CFH<9DIF7<5G9C:IDHCG<5F9GC:-9F=9G& *F9:9FF98-HC7?H<9T.9B89F)::9FUF9DF9G9BH=B;CB9?H<=F8C:H<9H<9B?CIHGH5B8=B;G<5F9GC:-9F=9G&*F9:9FF98-HC7?
.<9 .9B89F)::9FK5GCJ9FGI6G7F=6985B8DIFGI5BHHCH<9H9FAGC:H<9.9B89F)::9FG<5F9GC:-9F=9G&*F9:9FF98-HC7?K9F9 5779DH98:CFDIF7<5G9CB5DFCF5H565G=G
19F9DIF7<5G98G<5F9GC:-9F=9G&*F9:9FF98-HC7?5H5DIF7<5G9DF=79C: D9FG<5F9C:K<=7<
CF
A=@@=CB=BH<95;;F9;5H9F9:@97HGH<95ACIBHC:577FI985B8IBD5=88=J=89B8GCBH<9 -9F=9G&*F9:9FF98-HC7?5GC:(CJ9A69F5G7CBJ9FH98HC5B8D5=8=B#&.<9HCH5@7CGHHCF9DIF7<5G9H<9H9B89F98 G<5F9G=B7@I8=B;DFC:9GG=CB5@:99GHC7CAD@9H9H<9.9B89F)::9FC:6IH9L7@I8=B;H<98=J=89B8G577FI98=BF9GD97HC: GI7<G<5F9GK5G
A=@@=CBK<=7<K5GDF=A5F=@M:IB898:FCA6CFFCK=B;GIB89FH<9F9JC@J=B;7F98=H:57=@=HM(CH9 19F97C;B=N98
A=@@=CBC:F9899A56@9DF9:9FF98GHC7?F989ADH=CBG=BCIF7CBGC@=85H98GH5H9A9BHC:CD9F5H=CBG:CFH<9M95F 9B898979A69F=B7CBB97H=CBK=H<H<9.9B89F)::9F
.<9G<5F9GC:-9F=9G&*F9:9FF98-HC7?5779DH98:CFD5MA9BH6M H<9CAD5BMK9F9F9GHCF98HCH<9GH5HIGC:5IH<CF=N986IHIB=GGI98G<5F9GC:DF9:9FF98GHC7?K=H<CIH89G=;B5H=CB5GHC7@5GGCF G9F=9G

/BH=@H<9:=:H<5BB=J9FG5FMC:H<985H9C:CF=;=B5@=GGI5B79C:CIF-9F=9G&*F9:9FF98-HC7?K95F9DFC<=6=H98:FCA =GGI=B;5BMG<5F9GC:DF9:9FF98GHC7?F5B?=B;G9B=CFHCCFCBD5F=HMK=H<H<9-9F=9G&*F9:9FF98-HC7?K=H<F9GD97HHCH<9 D5MA9BHC:8=J=89B8GCH<9F8=GHF=6IH=CBG@=EI=85H=CB5B8CF8=GGC@IH=CBCFK=B8=B;IDC:H<9CAD5BMIB@9GGH<9'=B=AIA =L98<5F;9CJ9F5;9,5H=C75@7I@5H98=B577CF85B79K=H<H<9FH=7@9G-IDD@9A9BH5FM89G7F=6=B;H<9-9F=9G&*F9:9FF98 -HC7?=G9EI5@HCCF;F95H9FH<5B

GC:979A69F5B8K9K9F9=B7CAD@=5B79K=H<H<9-9F=9G& *F9:9FF98-HC7?'=B=AIA =L98<5F;9CJ9F5;9,5H=C

,9:9FHC(CH9:CF58=G7IGG=CBC:79FH5=BD5MA9BHGH<9CAD5BM<5GA589=BG<5F9GC:CAACB-HC7?5B8=B G<5F9GC:*F9:9FF98-HC7?5B8A5MA5?9=BG<5F9GC:*F9:9FF98-HC7?=B@=9IC:75G<D5MA9BHG=BCF89FHCF9A5=B=B7CAD@=5B79 K=H<H<9-9F=9G&*F9:9FF98-HC7?'=B=AIA =L98<5F;9CJ9F5;9,5H=C

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

8E834=3BS1=H<F9GD97HHCH<9D5MA9BHC:8=J=89B8GH<9-9F=9G*F9:9FF98-HC7?F5B?GG9B=CFHCCIF-9F=9G& *F9:9FF98-HC7?5B8CIFCAACB-HC7?5B8CBD5F=HMK=H<CIF-9F=9G*F9:9FF98-HC7?
.<9-9F=9G&*F9:9FF98-HC7?F5B?G G9B=CFHCCIFCAACB-HC7?9L79DHK=H<F9GD97HHC5B8CB@MHCH<99LH9BHC:H9#B=H=5@=J=89B85B8IB=CFHCCIF-9F=9G *F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B8CAACB-HC7?K=H<F9GD97HHC5B8CB@MHCH<99LH9BHC:H<9#B=H=5@=J=89B8 1=H<F9GD97HHCH<98=GHF=6IH=CBC:5ACIBHGIDCB@=EI=85H=CB8=GGC@IH=CBCFK=B8=B;?IDH<9-9F=9G*F9:9FF98-HC7?F5B?GCB D5F=HMK=H<CIF-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?HCH<99LH9BHC:H<9-9F=9G&*F9:9FF98-HC7?-H5H98 05@I95B8CH<9FK=G9F5B?GG9B=CFHCCIF-9F=9G&*F9:9FF98-HC7?5B8CIFCAACB-HC7?
1=H<F9GD97HHCH<98=GHF=6IH=CBC: 5ACIBHGIDCB@=EI=85H=CB8=GGC@IH=CBCFK=B8=B;?IDH<9-9F=9G&*F9:9FF98-HC7?F5B?GG9B=CFHCCIFCAACB-HC7?6CH<= HCH<99LH9BHC:H<9-9F=9G&*F9:9FF98-HC7?-H5H9805@I95B8==:C@@CK=B;D5MA9BHHC<C@89FGC:CIFCAACB-HC7?C:5B 5ACIBH9EI5@HC5BMIBD5=8#B=H=5@=J=89B8HCH<99LH9BHC:5BM577FI985B8IBD5=88=J=89B8GCBH<9-9F=9G&*F9:9FF98-HC7? CBD5F=HMK=H<CIF-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?HCH<99LH9BHC:H<9-9F=9G&*F9:9FF98-HC7?-H5H98 05@I95B8>IB=CFHCCIF-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B8CAACB-HC7?HCH<99LH9BHC:H<9#B=H=5@ =J=89B8=B5@@=BGH5B79GK=H<F9GD97HHC5BM577FI985B8IBD5=88=J=89B8GCBH<9-9F=9G&*F9:9FF98-HC7?

"C@89FGC:-9F=9G*F9:9FF98-HC7?5F99BH=H@98HCF979=J9=:5G5B8K<9B5IH<CF=N986MCIFC5F8C:=F97HCFG5B8 897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G7IAI@5H=J975G<8=J=89B8GCB957<G<5F9C:-9F=9G*F9:9FF98-HC7?5H5B5BBI5@ F5H9C:
C:H<9-9F=9G*F9:9FF98-HC7?-H5H9805@I9=
9
H<99EI=J5@9BHC:
D9FG<5F9D9FEI5FH9FH<9T-9F=9G =J=89B8U
"C@89FGC:-9F=9G*F9:9FF98-HC7?5F99BH=H@98HCF979=J9=:5G5B8K<9B5IH<CF=N986MCIFC5F8C:=F97HCFG 5B8897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G7IAI@5H=J975G<8=J=89B8GCB957<G<5F9C:-9F=9G*F9:9FF98-HC7?5H5B 5BBI5@F5H9C:
C:H<9-9F=9G*F9:9FF98-HC7?-H5H9805@I9=
9
H<99EI=J5@9BHC:
D9FG<5F9D9FEI5FH9FH<9 T-9F=9G=J=89B8U
=J=89B8GCB957<G<5F9C:-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?69;=B577FI=B;CB 5B85F97IAI@5H=J9:FCAH<985H9C:=GGI5B79

199LD97HHCD5MH<9-9F=9G=J=89B85B8-9F=9G=J=89B8=B5FF95FGCB5ACBH<@M65G=G=B577CF85B79K=H<H<9 :CF9;C=B;DFCJ=G=CBGIB@9GGCIFF9GI@HGC:CD9F5H=CBGCIF;9B9F5@:=B5B7=B;7CB8=H=CBG;9B9F5@97CBCA=77CB8=H=CBG5DD@=756@9 F9EI=F9A9BHGC:H<9'!&CFCH<9F:57HCFGA5?9=H=ADFI89BHHC8CGC
.<9H=A=B;5B85ACIBHC:H<9-9F=9G=J=89B85B8 H<9-9F=9G=J=89B8K=@@6989H9FA=B986MCIFC5F8C:=F97HCFG=B=HGGC@98=G7F9H=CB5B8A5MJ5FM:FCAH=A9HCH=A9

"C@89FGC:-9F=9G&*F9:9FF98-HC7?5F99BH=H@98HCF979=J9=:5G5B8K<9B5IH<CF=N986MCIFC5F8C:=F97HCFG5B8 897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G7IAI@5H=J975G<8=J=89B8GCB957<G<5F9C:-9F=9G&*F9:9FF98-HC7?5H5B5BBI5@ F5H9C:
C:H<9-9F=9G&*F9:9FF98-HC7?-H5H9805@I9=
9
H<99EI=J5@9BHC:
D9FG<5F9D9FM95F
=J=89B8GCB 957<G<5F9C:-9F=9G&*F9:9FF98-HC7?69;5B577FI=B;CB5B85F97IAI@5H=J9:FCAH<985H9C:=GGI5B79

199LD97HHCD5M8=J=89B8GCBH<9-9F=9G&*F9:9FF98-HC7?=B5FF95FGCB5B5BBI5@65G=G=B577CF85B79K=H<H<9 :CF9;C=B;DFCJ=G=CBGIB@9GGCIFF9GI@HGC:CD9F5H=CBGCIF;9B9F5@:=B5B7=B;7CB8=H=CBG;9B9F5@97CBCA=77CB8=H=CBG5DD@=756@9 F9EI=F9A9BHGC:H<9'!&CFCH<9F:57HCFGA5?9=H=ADFI89BHHC8CGC

:H<9CAD5BM:5=@GHCH=A9@M897@5F98=GHF=6IH=CBGCF :5=@GHCH=A9@MD5M8=GHF=6IH=CBGCBH<9-9F=9G&*F9:9FF98-HC7?H<95BBI5@8=J=89B8F5H9C:H<9-9F=9G&*F9:9FF98-HC7?K=@@ H9ADCF5F=@M=B7F95G96M

D9FM95FIDHC5A5L=AIAF5H9C:
D9F5BBIA
"CK9J9FDF=CFHCH<9D5MA9BHC:5BM 8=GHF=6IH=CBGCB-9F=9G&*F9:9FF98-HC7?=BF9GD97HC:5;=J9BM95FH<9CAD5BMAIGH:=FGH897@5F95B8D5M8=J=89B8GCBH<9 CAACB-HC7?=BF9GD97HC:GI7<M95F=B5B5;;F9;5H95ACIBH9EI5@HCH<9#B=H=5@=J=89B85BBCIB7986MCIFC5F8C: =F97HCFG5HH<99B8C:H<9DF=CF:=G75@M95F
)B979A69FH<9CAD5BM5BBCIB7985B#B=H=5@=J=89B8CBG<5F9GC: CIFCAACB-HC7?:CF:=G75@M95F=BH<95;;F9;5H95ACIBHC:

IF=B;H<9M95F9B898979A69FH<9CAD5BMD5=8
A=@@=CB5B8
A=@@=CBC:75G< 8=J=89B8GCBCIF-9F=9G*F9:9FF98-HC7?-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?F9GD97H=J9@M
IF=B;H<9M95F 9B898979A69FH<9CAD5BMD5=8
A=@@=CB5B8
A=@@=CBC:75G<8=J=89B8GCBCIF-9F=9G*F9:9FF98 -HC7?-9F=9G*F9:9FF98-HC7?5B8-9F=9G&*F9:9FF98-HC7?F9GD97H=J9@M

'434<?C8>=BS)IF-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?5F9F9899A56@95HH<9CDH=CBC:H<9<C@89F CF#'CAA9F7=5@
.<9F989ADH=CBG7<98I@9C:H<9-9F=9G*F9:9FF98-HC7?5B8-9F=9G*F9:9FF98-HC7?5@@CKG F989ADH=CBG5HH<9CDH=CBC:H<9<C@89FC:-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?:FCAH<985H9C:CF=;=B5@ =GGI5B79C:5BMGI7<G<5F9G5HH<9-9F=9G*F9:9FF98-HC7?-H5H9805@I9CF-9F=9G*F9:9FF98-HC7?-H5H9805@I9F9GD97H=J9@M @9GG5F989ADH=CB:995DD@=756@9DF=CFHCH<9:=:H<5BB=J9FG5FMC:H<9=GGI5B79C:GI7<G<5F9GD@IG577FI985B8IBD5=88=J=89B8G #'CAA9F7=5@<5GH<9F=;<HHCF9899AH<9-9F=9G*F9:9FF98-HC7?CF-9F=9G*F9:9FF98-HC7?5:H9FH<9:=:H<5BB=J9FG5FMC: H<985H9C:CF=;=B5@=GGI5B79C:GI7<G<5F9G5HH<9-9F=9G*F9:9FF98-HC7?-H5H9805@I9CF-9F=9G*F9:9FF98-HC7?-H5H98 05@I9F9GD97H=J9@MD@IG577FI985B8IBD5=88=J=89B8G
HH<9CAD5BMG8=G7F9H=CBH<9F989ADH=CBDF=79K=@@69D5=8=B75G< CF=BCAACB-HC7?65G98CBH<9JC@IA9K9=;<H985J9F5;9DF=79C:CIFCAACB-HC7?:CFH<9HF58=B;85MGDF=CFHCH<9

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

F989ADH=CBDFCJ=898H<5HH<9F989ADH=CBDF=79C:5BMG<5F9GC:-9F=9G*F9:9FF98-HC7?F9899A98DF=CFHCH<9:=FGH5BB=J9FG5FM C:H<985H9C:CF=;=B5@=GGI5B79C:GI7<G<5F9GAIGH69D5=8=B75G<

FCA5B85:H9FH<9:=:H<5BB=J9FG5FMC:H<985H9C:CF=;=B5@=GGI5B79C:H<9-9F=9G&*F9:9FF98-HC7?957<<C@89FK=@@ <5J9H<9F=;<HHCF9EI=F9H<9CAD5BMHCF9899A5B8H<9CAD5BMK=@@5@GC<5J9H<9CDH=CBHCF9899AGI6>97HHC79FH5=B 7CB8=H=CBGGI7<G<5F9GC:-9F=9G&*F9:9FF98-HC7?5H5F989ADH=CBDF=799EI5@HCH<9-9F=9G&*F9:9FF98-HC7?-H5H9805@I9 D@IGDFCJ=89879FH5=B7CB8=H=CBG5F9A9H5@@577FI985B8IBD5=88=GHF=6IH=CBG
(CHK=H<GH5B8=B;H<9:CF9;C=B;5<C@89FC: G<5F9GC:CIF-9F=9G&*F9:9FF98-HC7?A5MF9EI=F9IGHCF9899AGI7<G<5F9G5H5BMH=A9DF=CFHCH<9:=:H<5BB=J9FG5FMC:H<985H9 C:CF=;=B5@=GGI5B79C:H<9-9F=9G&*F9:9FF98-HC7?=:K98CBCH897@5F95B8D5M=B:I@@H<98=GHF=6IH=CBCBH<9-9F=9G& *F9:9FF98-HC7?:CF5BM5BBI5@D9F=C8DF=CFHCGI7<:=:H<5BB=J9FG5FMCFK98CBCH897@5F95B8D5M5@@577FI985B8IBD5=8 8=GHF=6IH=CBGCBH<9-9F=9G&*F9:9FF98-HC7?:CF5@@D5GH8=J=89B8D9F=C8GDF=CFHCH<95DD@=756@9<C@89FF989ADH=CB85H9
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

()\$ \$!'(N&*).

8E834=3B

"C@89FGC:CIFCAACB-HC7?5F99BH=H@98HCF979=J98=J=89B8G=:5G5B8K<9B5IH<CF=N986MH<9C5F8C:=F97HCFG 5B8897@5F986MIGCIHC:@9;5@@M5J5=@56@9:IB8G

B89H9FA=B=B;CIF8=J=89B8DC@=7MH<9C5F8C:=F97HCFG7CBG=89FGA5BM :57HCFG=B7@I8=B;H<95ACIBHC:75G<F9GCIF79G5J5=@56@9:CF8=J=89B88=GHF=6IH=CBG75D=H5@GD9B8=B;D@5BG75G<:@CKCIF :=B5B7=5@DCG=H=CB5DD@=756@9F9EI=F9A9BHGC:H<9'!&5BM5DD@=756@97CBHF57HI5@F9GHF=7H=CBG5B8:IHIF9;FCKH<=B(05B8 75G<:@CKD9FG<5F9DFCGD97HG

CBG9EI9BH@MH<98=J=89B8F5H9CB5EI5FH9F@M65G=G8C9GBCHB979GG5F=@M7CFF9@5H98=F97H@MHC5BM =B8=J=8I5@:57HCF
5G<8=J=89B8GD9FG<5F9C:CAACB-HC7?D5=8=BF9GD97HC:H<9M95FG9B898979A69F5B8 7CBG=GHC:H<9:C@@CK=B;

42;0A0C8>=0C4	%0H<4=C0C4	)H?4	0B78E834=3%4A (70A4>5><<>=(C>2:
979A69F	979A69F	,9;I@5F+I5FH9F@M
-9DH9A69F	-9DH9A69F	,9;I@5F+I5FH9F@M
\$IB9	\$IB9	,9;I@5F+I5FH9F@M
'5F7<	'5F7<	,9;I@5F+I5FH9F@M
979A69F	979A69F	,9;I@5F+I5FH9F@M
I;IGH	-9DH9A69F	,9;I@5F+I5FH9F@M
I;IGH	I;IGH	-D97=5@5G<
\$IB9	\$IB9	,9;I@5F+I5FH9F@M
96FI5FM	'5F7<	,9;I@5F+I5FH9F@M

)B'5F7<K9897@5F98575G<8=J=89B8C:
D9FG<5F9C:CIFCAACB-HC7?HC69D5=8CB'5F7< HCGHC7?<C@89FGC:F97CF85HH<97@CG9C:6IG=B9GGCB'5F7<

(4A84B%A454AA43,0AA0=CB

*F=CFHC 96FI5FMH<9-9F=9G*F9:9FF98-HC7?K5GGC@85G5IB=HH<5H=B7@I898CB9G<5F9C:-9F=9G*F9:9FF98 -HC7?5B8CB9-9F=9G*F9:9FF9815FF5BHH<5H7CI@8699L9F7=G98HCDIF7<5G9
C:5G<5F9C:CAACB-HC7?
.<9-9F=9G *F9:9FF9815FF5BHG5F99L9F7=G56@969;=BB=B;CBH<9:=FGH5BB=J9FG5FMC:H<985H9C:H<9=FCF=;=B5@=GGI5B79IBH=@5B8=B7@I8=B; H<9:=:H<5BB=J9FG5FMC:H<985H9C:GI7<=GGI5B79
HH<9H=A9C:=GGI5B79H<99L9F7=G9DF=79C:957<-9F=9G*F9:9FF9815FF5BH K5G5H5
DF9A=IAHCH<9D9FG<5F99GH=A5H98(0C:CIFCAACB-HC7?H<9BACGHF979BH@MDI6@=G<985B889G=;B5H985G

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

H<9DD@=756@9(0
"CK9J9F=B577CF85B79K=H<H<9H9FAGC:H<9-9F=9G*F9:9FF9815FF5BHGH<99L9F7=G9DF=79C:957< -9F=9G*F9:9FF9815FF5BH=GGI98DF=CFHCH9,9J9FG9-HC7?-D@=HK5G5IHCA5H=75@@M58IGH98HCF9:@97HH<99::97HC:H<9 ,9J9FG9-HC7?-D@=H5B8=BH<98=G7F9H=CBC:CIFC5F8C:=F97HCFGH<99L9F7=G9DF=795B8H<9BIA69FC:G<5F9G=GGI56@9IDCB 9L9F7=G9C:957<-9F=9G*F9:9FF9815FF5BH=GGI98DF=CFHCH9-D97=5@=J=89B8K5G58IGH98HCF9:@97HH<99::97HC:H<9-D97=5@ =J=89B8

*FC7998G5B89LD9BG9G:FCAH<9G5@9C:H<9-9F=9G*F9:9FF98/B=HGK9F95@@C75H98HCH<9-9F=9G*F9:9FF98-HC7?5B8 -9F=9G*F9:9FF9815FF5BHGIG=B;H<9=FF9@5H=J9:5=FJ5@I9GCBH<985H9C:=GGI5B79
GC:979A69FK9<58=GGI98 -9F=9G*F9:9FF9815FF5BHGHCDIF7<5G9G<5F9GC:CAACB-HC7?=B7CBB97H=CBK=H<CIFC::9F=B;C: -9F=9G*F9:9FF98/B=HG5B85@@C75H98B9HDFC7998GC:5:H9FGD97=:=75@@M=89BH=:=56@9C::9F=B;7CGHG5B85@@C75H98 ;9B9F5@C::9F=B;7CGHGHCH<9-9F=9G*F9:9FF9815FF5BHG=BD9FA5B9BH9EI=HM

'+)+##!#()'*"#)(##)+)(

4364B>5=C4A4BC'0C4'8B:

BCF89FHCA5B5;9:=B5B7=B;7CGHG5B8=BH9F9GHF5H99LDCGIF9F9@5H98HCH<9CB9?ACBH<&#),=B89L98J5F=56@9F5H9 6CFFCK=B;GCBI;IGHK99BH9F98=BHCH9B=BH9F9GHF5H9GK5D5;F99A9BHGK=H<AI@H=D@97CIBH9FD5FH=9GHCH5@=B; A=@@=CBC:BCH=CB5@J5@I9

.<9G9GK5D5;F99A9BHG6975A99::97H=J9CB(CJ9A69F
IF=B;H<9M95F9B898979A69F K9H9FA=B5H98CIFHKCF9A5=B=B;=BH9F9GHF5H9GK5DGK=H<5B5;;F9;5H9BCH=CB5@J5@I9C:
A=@@=CB:CFK<=7<K9 F979=J985;;F9;5H9H9FA=B5H=CBD5MA9BHGB9HC::99GC:
A=@@=CB
.<9:5=FJ5@I9C:CIFHKCF9A5=B=B;GK5DG5HH<9H=A9C: H9FA=B5H=CBK5G
A=@@=CBF9GI@H=B;=B5B9H@CGGC:K<=7<K5GF97CF8985G5B9H=B7F95G9HC=BH9F9GH9LD9BG9CBCIF 7CBGC@=85H98GH5H9A9BHC:CD9F5H=CBG:CFH<9M95F9B898979A69F

57<C:CIF=BH9F9GHF5H9GK5D5;F99A9BHG=B=H=5@@MA9HH<97F=H9F=5:CF75G<:@CK<98;9577CIBH=B;HF95HA9BH5B8K9 <5889G=;B5H98H<9=BH9F9GHF5H9GK5D5;F99A9BHG5G75G<:@CK<98;9GC:H<9F=G?C:J5F=56=@=HM5HHF=6IH56@9HC7<5B;9G=BH<9CB9? ACBH<&#),
77CF8=B;@MH<9=BH9F9GHF5H9GK5DGK9F9F97CF898CBCIF7CBGC@=85H9865@5B79G<99HG5H:5=FJ5@I95B8DF=CFHC I;IGHH<97<5B;9G=BH<9:5=FJ5@I9C:H9GK5DGK9F9F97CF898=B)#5B8F97@5GG=:=98HC95FB=B;G5G5B58IGHA9BHHC =BH9F9GH9LD9BG95G=BH9F9GH6975A9F979=J56@9CFD5M56@9(CH9
9;=BB=B;CBI;IGH7<5B;9G=BH<9:5=FJ5@I9C: H<9GK5DGK9F9F97CF898=B=BH9F9GH9LD9BG9CBCIF7CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG
CFH<9M95FG9B898979A69F 5B8
A=@@=CB5B8
A=@@=CBF9GD97H=J9@MK5GF97@5GG=:=98:FCA)#5B8897F95G98=BH9F9GH9LD9BG9CBCIF 7CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBGK<=7<8IF=B;H<9M95F9B898979A69F=B7@I8985KF=H9C::C:
A=@@=CB5H H<9H=A9CIFHKCF9A5=B=B;=BH9F9GHF5H9GK5DGK9F9H9FA=B5H98
CFH<9M95FG9B898979A69F5B8 5B8
A=@@=CBF9GD97H=J9@MK5G=B7@I8985G5B=B7F95G9=B=BH9F9GH9LD9BG9CBCIF7CBGC@=85H98GH5H9A9BHGC:CD9F5H=CBG F9@5H98HCH<97<5B;9=BH<9:5=FJ5@I9C:CIF=BH9F9GHF5H9GK5DG

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

Impact of Hedges on AOCI and Consolidated Statements of Operations

The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows:

	Year Ended December 31,
	2020			2019		2018
				(in thousands)
Accumulated other comprehensive income (loss), at beginning of period				\$ 1,806	e	1,631
Other comprehensive income before reclassifications						1,973
Amounts reclassified (to) from accumulated other comprehensive income (loss) (1)				(1,806)		(1,798)
				(1,806)		175
Accumulated other comprehensive income, at end of period						1.806
Net current period other comprehensive income (loss)

The amounts from AOCI were reclassified as a (decrease) increase to interest expense in our consolidated statements (1) of operations.

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable in a marketplace. The hierarchy for inputs used in measuring fair value is as follows:

Level 1 Inputs-Quoted prices in active markets for identical assets or liabilities

Level 2 Inputs-Observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 Inputs-Unobservable inputs

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Management's estimation of the Company's financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for our financial instruments and we utilize other methodologies based on unobservable inputs for valuation purposes since there are no Level 2 inputs available. Accordingly, Level 3 inputs are used to measure fair value.

In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented are made at a point in time and may not be indicative of the amounts we could realize in a current market exchange.

The following describes the methods the Company uses to estimate the fair value of the Company's financial assets and liabilities.

Debt-The carrying amounts of our secured borrowings-government guaranteed loans, SBA 7(a) loan-backed notes, 2018 revolving credit facility and borrowed funds from the Federal Reserve through the PPPLF approximate their fair values,

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

5GH<9=BH9F9GHF5H9GCBH<9G9G97IF=H=9G5F9J5F=56@95B85DDFCL=A5H97IFF9BHA5F?9H=BH9F9GHF5H9G
1989H9FA=B9H<9:5=FJ5@I9C: ACFH;5;9BCH9GD5M56@95B8>IB=CFGI6CF8=B5H98BCH9G6MD9F:CFA=B;8=G7CIBH9875G<:@CK5B5@MG9GIG=B;5B5DDFCDF=5H9 A5F?9H8=G7CIBHF5H9
1975@7I@5H9H<9A5F?9H8=G7CIBHF5H9:CFCIFACFH;5;9BCH9GD5M56@96MC6H5=B=B;D9F=C8?9B8HF95GIFMCF GK5DF5H9G5G5DD@=756@9:CFA5HIF=H=9GH<5H7CFF9GDCB8HCH<9A5HIF=H=9GC:CIF896H5B8H<9B588=B;5B5DDFCDF=5H97F98=H GDF958
.<9G97F98=HGDF958GH5?9=BHC577CIBH:57HCFGGI7<5GCIF7F98=HGH5B8=B;H<9A5HIF=HMC:H<9896HK<9H<9FH<9896H=G G97IF98CFIBG97IF985B8H<9@C5B?HC?J5@I9F5H=CGC:H<9896H
1<9B9GH=A5H=B;H<9:5=FJ5@I9C:CIFACFH;5;9GD5M56@95GC: 979A69F5B8K9IG985F5H9C:
5B8
F9GD97H=J9@M
.<9F5H9IG98HC9GH=A5H9H<9:5=FJ5@I9C:CIF >IB=CFGI6CF8=B5H98BCH9GK5G
5B8
5GC:979A69F5B8F9GD97H=J9@M

!>0=B'4248E01;4S1989H9FA=B9H<9:5=FJ5@I9C:@C5BGF979=J56@96MD9F:CFA=B;5DF9G9BHJ5@I95B5@MG=G:CFH<9 5BH=7=D5H98:IHIF975G<:@CKGIG=B;5B5DDFCDF=5H9A5F?9H8=G7CIBHF5H9H5?=B;=BHC7CBG=89F5H=CBH<97F98=HF=G?5B8IG=B;5B 5BH=7=D5H98DF9D5MA9BHF5H9
.<9J5@I9C:H<9;CJ9FBA9BH;I5F5BH998DCFH=CBGC:@C5BG<9@8:CFG5@9=G65G98DF=A5F=@MCBH<9 5BH=7=D5H98DFC7998GHC69F979=J98IDCBG5@9
.<9:C@@CK=B;GIAA5F=N9GH<9F5B;9GC:8=G7CIBHF5H9G5B8DF9D5MA9BHF5H9G IG98HC5FF=J95HH<99GH=A5H98:5=FJ5@I9GC:H<9CAD5BMVG@C5BGF979=J56@9

	.40A=343424<14A
	8B2>D=C'0C4	%A4?0H<4=C'0C4	8B2>D=C'0C4	%A4?0H<4=C'0C4
-5@C5BGF979=J56@9GI6>97HHC7F98=HF=G?
-5@C5BGF979=J56@9GI6>97HHC@C5B?657?98BCH9G
-5@C5BGF979=J56@9GI6>97HHCG97IF986CFFCK=B;G
-5@C5BGF979=J56@9D5M7<97?DFCH97H=CBDFC;F5A		(	(	(

\$C74A8=0=280;=BCAD<4=CBS.<975FFM=B;5ACIBHGC:CIF75G<5B875G<9EI=J5@9BHGF9GHF=7H9875G<577CIBHG F979=J56@9577CIBHGD5M56@95B8577FI989LD9BG9G5DDFCL=A5H9H<9=F:5=FJ5@I9G8I9HCH<9=FG<CFH?H9FAA5HIF=H=9G5H 979A69F5B8

.<99GH=A5H98:5=FJ5@I9GC:H<CG9:=B5B7=5@=BGHFIA9BHGK<=7<5F9BCHF97CF8985H:5=FJ5@I9CB5F97IFF=B;65G=GCBCIF 7CBGC@=85H9865@5B79G<99HG5F95G:C@@CKG

	424<14A				424<14A
	0AAH8=6		BC8<0C43		0AAH8=6		BC8<0C43
	<>D=C		08A+0;D4		<>D=C		08A+0;D4		!4E4;
						=BH<CIG5B8G
BB4CB
-5@C5BGF979=J56@9D5M7<97?DFCH97H=CBDFC;F5A						S		S
-5@C5BGF979=J56@9GI6>97HHC@C5B?657?98BCH9G
-5@C5BGF979=J56@9GI6>97HHC7F98=HF=G?
-5@C5BGF979=J56@9GI6>97HHCG97IF986CFFCK=B;G
-5@C5BGF979=J56@9<9@8:CFG5@9
!8018;8C84B
'CFH;5;9D5M56@9
\$IB=CFGI6CF8=B5H98BCH9G

.<975FFM=B;5ACIBHG:CFH9ACFH;5;9D5M56@95B8IB=CFGI6CF8=B5H98BCH9GF9DF9G9BHGH<9DF=B7=D5@CIHGH5B8=B; 5ACIBHG9L7@I8=B;89:9FF98@C5B7CGHG5B88=G7CIBHG

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

13. RELATED-PARTY TRANSACTIONS

Asset Management and Other Fees to Related Parties

Asset Management Fees-In December 2015, CIM Urban and CIM Capital, LLC (formerly CIM Investment Advisors, LLC), an affiliate of CIM REIT and CIM Group ("CIM Capital"), entered into an investment agreement, pursuant to which CIM Urban engaged CIM Capital to provide certain services to CIM Urban (the "Investment Management Agreement"). On January 1, 2019, CIM Capital assigned its duties under the Investment Agreement to its four wholly-owned subsidiaries: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The "Operator" refers to CIM Investment Advisors, LLC from December 10, 2015 to December 31, 2018 and to CIM Capital and its four wholly-owned subsidiaries on and after January 1, 2019.

CIM Urban pays asset management fees to the Operator on a quarterly basis in arrears. The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets:

	Daily Average Adjusted Fair Value of CIM Urban's Assets		Quarterly Fee
	From Greater of	To and Including	Percentage
	(in thousands)
S	S	500,000	0.2500%
S	500,000 ಲ್ಲಿ	1,000,000	0.2375%
S	1,000,000 રે	1,500,000	0.2250%
S	ક 1,500,000	4,000,000	0.2125%
S	4,000,000 ಕ್ಕೆ	20,000,000	0.1000%

Asset management fees are included in asset management and other fees to related parties in the accompanying consolidated statements of operations.

In lieu of cash payment of the asset management fee during the year ended December 31, 2020, the Company issued to the Operator shares of our Common Stock and shares of our Series A Preferred Stock. Subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Operator, it is likely that we will seek to pay some or part of the asset management fees for part of 2021 in shares of Series A Preferred Stock.

Property Management Fees and Reimbursements-CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM REIT and CIM Group, provide property management, leasing, and development services to CIM Urban. Property management fees earned by the CIM Management entities and onsite management costs incurred on behalf of CIM Urban are included in rental and other property operating expenses in the accompanying consolidated statements of operations earned are capitalized to deferred charges on the accompanying consolidated balance sheets. Construction management fees are capitalized to investments in real estate on the accompanying consolidated balance sheets.

Administrative Fees and Expenses-On March 11, 2014, CIM Commercial and its subsidiaries entered into a master services agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Administrator"), an affiliate of CIM Group, pursuant to which the Administrator provides, or arranges for other service provide, management and administration services to CIM Commercial and its subsidiaries. Pursuant to the Master Services Agreement, we appointed an affiliate of CIM Group as the administrator of Urban Partners GP, LLC. Under the Master Services Agreement, CIM Commercial paid a base service fee (the "Base Service Fee") to the Administrator initially set at \$1.0 million per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. On May 11, 2020, the Master Services Agreement was amended to replace the Base Service Fee (the "Incentive Fee") pursuant to which the Administrator receives, on a quarterly basis, 15.00% of CIM Commercial's quarterly core funds from operations in excess of a quarterly threshold equal to 1.75% (i.e., 7.00% on an annualized basis) of CIM Commercial's average adjusted common stockholders' equity (i.e., common stockholders' equity plus accumulated depreciation and amortization) for such quarter. The amendment is effective as of April 1, 2020. The Base Service Fee is included in asset management and other fees to related parties in the accompanying consolidated statements of operations.

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

In addition, pursuant to the terms of the Master Services Agreement, the Administrator may receive compensation and or reimbursement for performing certain services for CIM Commercial and its subsidiaries that are not covered by the Base Service Fee or the Incentive Fee, as the case may be. During the years ended December 31, 2020, 2019 and 2018, such services performed by the Administrator and its affiliates included accounting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, and from and after September 2018, operational and on-going support in connection with the Company's offering of Preferred Stock. The Administrator's compensation is based on the salaries and benefits of the employees of the Administrator and or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of CIM Commercial and its subsidiaries). The expense for such services is included in expense reimbursements to related parties-corporate in the accompanying consolidated statements of operations.

Lending Segment Expenses-On January 1, 2015, the Company entered into a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC ("CIM SBA"), an affiliate of CIM Group, and our subsidiary, PMC Commercial Lending, LLC. The agreement provides that CIM SBA will provide personnel and resources to us and that we will reimburse CIM SBA for the costs and expenses of providing such personnel and resources. The expense for such services is included in expense reimbursements to related parties-lending segment in the accompanying consolidated statements of operations.

Offering-Related Fees-On May 10, 2018, the Company entered into the wholesaling agreement (the "Wholesaling Agreement") with International Assets Advisors, LLC ("IAA") and CCO Capital"). CCO Capital"). CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator. IAA was the exclusive dealer manager for the Company's public offering of Series A Preferred Units until May 31, 2019. Under the Wholesaling Agreement, among other things, CO Capital, in its capacity as the wholesaler for the offering, assisted IAA with the sale of Series A Preferred Units. In exchange for such services, IAA paid CCO Capital a fee equal to 2.75% of the selling price of each Series A Preferred Unit for which a sale was completed, reduced by any applicable fee reallowances payable to soliciting dealers pursuant to separate soliciting dealer agreements between IAA and soliciting dealers. The foregoing fee was reduced, and may have been exceeded, by a fixed monthly payment by CCO Capital to IAA's services in connection with periodic closings and settlements for the offering.

On May 31, 2019, the Company, IAA and CCO Capital entered into an Amendment, Assignment and Assumption Agreement (the "Assignment Agreement"), pursuant to which CCO Capital assumed all of the rights and obligations of IAA under the dealer manager agreement, dated as of June 28, 2016, as amended, by and between the Company and IAA. As a result of the Assignment Agreement, CCO Capital became the exclusive dealer manager for the Company's public offering of the Series A Preferred Units effective as of May 31, 2019. In connection of the Assignment Agreement, the Company terminated the Wholesaling Agreement effective as of May 31, 2019. The Company's offering of the Series A Preferred Units ended at the end of January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acts as the exclusive dealer manager for the Company's public offering of its Series A Preferred Stock and Series D Preferred Stock. Thereunder, the Company agreed to pay CCO Capital, as the dealer manager for the offering, (1) an upfront dealer manager fee of up to 1.25% of the selling price of each share of Preferred Stock sold, (2) selling commissions of up to 5.50% of the selling price of each share of Series A Preferred Stock sold (with no selling commissions payable in respect of shares of Series D Preferred Stock sold) and (3) a trailing dealer manager fee that accrues daily in an amount equal to 1/3654 of 0.25% per annum of the selling price of each share of Preferred Stock sold. CCO Capital, in its sole discretion, may reallow to another broker-dealer authorized by it to sell shares in the offering a portion of the upfront dealer manager fee earned by it in respect of shares sold by such broker-dealer.

On April 9, 2020, the Company entered into Amendment No. 1 to the Second Amended and Restated Dealer Manager Agreement, pursuant to which the selling commissions were increased from up to 5.00% to up to 7.00% of the selling price of each share of Series A Preferred Stock sold thereafter. The Company has been informed that CCO Capital generally reallows 100% of the selling commissions on sales of Series A Preferred Stock and generally reallows substantially all of the upfront dealer manager fee on sales of Series A Preferred Stock and Series D Preferred Stock, to participating broker-dealers.

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

The Company recorded fees and expense reimbursements as shown in the table below for services provided by related parties related to the services described above during the periods indicated:

		Year Ended December 31,
		2020		2019		2018
				(in thousands)
Asset Management Fees:
Asset management fees (1)	S	તે રી I	ਦਿੱਤੇ	12,019	ਦੇ ਰੋ	17,880
Property Management Fees and Reimbursements:
Property management fees	S	1,670	S	2,562	ਦਿੱਤ	4,365
Onsite management and other cost reimbursement	S	3,356	S	5,852	S	6,065
Leasing commissions	S	112	S	658	S	1,548
Construction management fees	S	344	S	રેડિ	S	580
Administrative Fees and Expenses:
Base service fee (2)	S	282	S	1,102	S	1,079
Expense reimbursements to related parties - corporate	S	2,243	S	2,577	ಲ್ಲಿ	2,783
Lending Segment Expenses:
Expense reimbursements to related parties - lending segment (3)	S	3,491	S	2,382	ಲ್ಲಿ	2,445
Offering-Related Fees:
Upfront dealer manager and trailing dealer manager fees	S	1,149	S	1,121	S
Non-issuance specific offering costs (4)	S	99	S		S

(1) For the year ended December 31, 2020, we issued to the Operator 203,349 shares of our Common Stock, in lieu of cash payment of the asset management fee for the first quarter of 2020, and 190,459 shares of our Series A Preferred Stock, in lieu of cash payment of the asset management fee for the second and third quarters of 2020.

(2) For the year ended December 31, 2020, we issued to the Administrator 11,273 shares of our Series A Preferred Stock, in lieu of cash as payment of the Base Service Fee for the first quarter of 2020.

(3) In addition, for the years ended December 31, 2020, 2019 and 2018, we deferred personnel costs of \$136,000, \$112,000 and \$330,000, respectively, associated with services provided for originating loans.

(4) As of December 31, 2020, 2019 and 2018, \$1.5 million, \$621,000 and \$200,000, respectively, was included in deferred costs as reimbursable expenses incurred pursuant to the Master Services Agreement and the then applicable dealer manager agreement with CCO Capital. These non-issuance specific costs are allocated against the gross proceeds from the sale of the Series A Preferred Stock and the Series D Preferred Stock on a pro rata basis for each issuance as a percentage of the total offering.

As of December 31, 2020 and 2019, due to related parties consisted of the following:

	December 31,
		2020	2019
		(in thousands)
Asset management fees	S	2,386	S	2,356
Property management fees and reimbursements		1,662		4,107
Expense reimbursements - corporate		647		1,673
Expense reimbursements - lending segment		690		1,029
Upfront dealer manager and trailing dealer manager fees		493
Non-issuance specific offering costs		668		169
Other amounts due to the CIM Management Entities and certain of its affiliates		160		97
Total due to related parties	S	6,706	S	9.431

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

Other

Our President, Jan F. Salit, retired effective as of September 16, 2020. We had an employment with Mr. Salit which, under certain circumstances, provided for severance payment equal to the annual base salary paid to Mr Salit. In connection with his retirement, the Company entered into an agreement with Mr. Salit pursuant to which, among other things, Mr. Salit received a \$450,000 payment, representing one year of his base salary, upon the satisfaction of certain conditions specified therein, including the execution of an agreement with the Company that contains, among other things, mutual release and non-disparagement provisions. Related to this payment, \$287,000 was borne by the Company based on the time that Mr. Salit devoted to the Company relative to other matters relating to CIM Group. As of December 31, 2020, \$287,000 was due to CIM Group for the Company's portion of the payment.

On October 1, 2015, an affiliate of CIM Group entered into a five-year lease renewal with respect to a property owned by the Company, which lease was amended to a month-to-month term in February 2019 and was terminated in October 2020. For the years ended December 31, 2020, 2019 and 2018, we recorded rental and other property income related to this tenant of \$87,000, \$112,000 and \$108,000, respectively.

On May 15, 2019, CIM Group entered into an approximately 11-year lease for approximately 32,000 rentable square feet with respect to a property owned by the Company. The lease was amended on August 7, 2019 to reduce the rentable square feet to approximately 30,000 rentable square feet. For the years ended December 31, 2020, 2019 and 2018, we recorded rental and other property income related to this tenant of \$1.5 million, \$932,000 and \$0, respectively.

In October 2019, our Administrator acquired 2,468,390 shares of our Common Stock, representing approximately 16.9% of the outstanding shares of our Common Stock at such time, for \$19.1685 per share from an affiliate of CIM Group in a private transaction.

14. COMMITMENTS AND CONTINGENCIES

Loan Commitments-Commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Our outstanding commitments to fund loans were \$34.1 million as of December 31, 2020, the majority of which are for prime-based loans to be originated by our subsidiary engaged in SBA 7(a) Small Business Loan Program lending, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements.

General-In connection with the ownership and operation of real estate properties, we have certain obligations for the payment of tenant improvement allowances and lease commissions with new leases and renewals. CM Commercial had a total of \$7.6 million in future obligations under leases to fund tenant improvements and other future construction obligations as of December 31, 2020. As of December 31, 2020, \$2.8 million was funded to reserve accounts included in restricted cash on our consolidated balance sheet for these tenant improvement obligations in connection with the mortgage loan agreement entered into in June 2016.

Employment Agreements-We have an employment agreement with one of our officers. Under certain circumstances, this employment agreement provides for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two time, respectively, the annual base salary paid to the officer.

Litigation-We are not currently involved in any material pending or threatened legal proceedings nor, to our knowledge, are any material legal proceedings currently threatened against us, other than routine litigation arising in the ordinary course of business. In the normal course of business, we are periodically party to certain legal actions and proceedings involving matters that are generally incidental to our business. While the outcome of these legal actions and proceedings cannot be predicted with certainty, in management's opinion, the resolution of these legal proceedings will not have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

In September 2018, we filed a lawsuit against the City and County of San Francisco seeking a refund of the \$11.8 million in penalties, interest and legal fees paid by us for real property transfer tax allegedly due for a transaction in a prior year. We disputed that such penalties, interest and legal fees were payable but, in order to contest the asserted tax obligations, we had

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

to pay such amounts to the City and County of San Francisco in August 2017. We have been vigorously pursuing this litigation and intend to continue to do so.

A subsidiary of the Company is a defendant in a lawsuit in connection with injuries sustained by a third-party contractor at a property previously owned by such subsidiary. While it is possible that a loss may be incurred, we are unable to estimate a range of potential losses due to the complexity and current status of the lawsuit. However, we maintain insurance coverage to mitigate the impact of adverse exposures in lawsuits of this nature and do not expect this lawsuit to have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

SBA Related-If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the PPP or the SBA 7(a) Small Business Loan Program, the SBA may seek recovery of the principal loss related to the deficiency from us. With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from us in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, we do not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or level of distributions on our Common Stock or Preferred Stock.

Environmental Matters-In connection with the ownership and operation of real estate properties, we may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. We have not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and we are not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.

15. LEASES

Future minimum rental revenue under long-term operating leases as of December 31, 2020, excluding tenant reimbursements of certain costs, are as follows:

Years Ending December 31,	Total
	(in thousands)
2021	ಳಿ 43,9
2022	42,3
2023	38,1
2024	36,4
2025	21,0
Thereafter	39,0

43,933

42,341

38,188

36,499

21,009

39,063 221,033

The Company determined that there was one office lease for our lending segment where the Company was the lessee that was material to the consolidated balance sheet. Based on our assessment, the lease was classified as an operating lease and the Company recorded approximately \$362,000 as a right-of-use asset in loan servicing asset, net and other assets and lease liability in other liabilities on the consolidated balance sheet on the effective date of January 1, 2019, which matured as of June 30, 2020. As of December 31, 2020 and 2019, the right-of-use asset and lease liability balance were approximately S0 and \$106,000, respectively.

16. INCOME TAXES

We have elected to be taxed as a REIT under the Code. To qualify as a REIT, we must meet a number of organizational and operational requirement , including a requirement that we distribute at least 90% of our to

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

CIFGHC7?C@89FG G5,#.K9;9B9F5@@MK=@@BCH69GI697HHC7CFDCF5H9@9J9@:989F5@=B7CA9H5LCBB9H=B7CA9H<5H=G 7IFF9BH@M8=GHF=6IH98HCGHC7?<C@89FG

19<5J9K<C@@M?CKB98.,-VGK<=7<5F9GI6>97HHC:989F5@5B8GH5H9=B7CA9H5L9G
.<9=B7CA9;9B9F5H98:FCAH<9 .,-VG=GH5L985HBCFA5@7CFDCF5H9F5H9G

.<9DFCJ=G=CB:CF=B7CA9H5L9GF9GI@HG=B9::97H=J9H5LF5H9GH<5H8=::9F:FCA:989F5@5B8GH5H9GH5HIHCFMF5H9G F97CB7=@=5H=CBC:H<9DFCJ=G=CB:CF=B7CA9H5L5HHF=6IH56@9HCH<9.,-GV=B7CA9:FCA7CBH=BI=B;CD9F5H=CBG7CADIH985H:989F5@ GH5HIHCFMF5H9GHCH<9=B7CA9H5LDFCJ=G=CBF9DCFH98=BH<9:=B5B7=5@GH5H9A9BHG=G5G:C@@CKG

	.40A=343424<14A
			=BH<CIG5B8G
&CGG=B7CA9:FCA7CBH=BI=B;CD9F5H=CBG69:CF9=B7CA9H5L9G:CF.,-G
LD97H98:989F5@=B7CA9H5L69B9:=HDFCJ=G=CB
-H5H9=B7CA9H5L9G
<5B;9=BJ5@I5H=CB5@@CK5B79				S	S
)H<9F
#B7CA9H5L69B9:=HDFCJ=G=CB

.<97CADCB9BHGC:CIFB9H89:9FF98H5L5GG9HK<=7<5F9=B7@I898=BCH<9F5GG9HG5F95G:C@@CKG

	424<14A
	=BH<CIG5B8G
9:9FF98H5L5GG9HG
(9HCD9F5H=B;@CGG9G
-97IF986CFFCK=B;GS;CJ9FBA9BH;I5F5BH998@C5BG
)H<9F
.CH5@;FCGG89:9FF98H5L5GG9HG
05@I5H=CB5@@CK5B79
9:9FF98H5L@=56=@=H=9G
&C5BGF979=J56@9
9:9FF98H5L5GG9HB9H

.<9B9HCD9F5H=B;@CGG75FFM:CFK5F8G5GC:979A69F5B8K9F9;9B9F5H986M.,-G5B85F95J5=@56@9HC C::G9H:IHIF9H5L56@9=B7CA9C:H<9G9.,-G

.<9=B7F95G9=BH<9J5@I5H=CB5@@CK5B79F97CF898=BK5G
A=@@=CB

.<9D9F=C8GGI6>97HHC9L5A=B5H=CB:CFCIF:989F5@5B8GH5H9=B7CA9H5LF9HIFBG5F9H<FCI;<
GC: 979A69F5B8BCF9G9FJ9G:CFIB79FH5=BH5LDCG=H=CBG<5J9699B9GH56@=G<985B8K98CBCH5BH=7=D5H95BM A5H9F=5@7<5B;9G=BH<95ACIBHC:IBF97C;B=N98H5L69B9:=HGF97CF898HCC77IFK=H<=BH<9B9LHACBH<G

.<9.5LIHG5B8\$C6G7HC:G=;B98=BHC@5K=B@5H9979A69FA589GK99D=B;7<5B;9GHCDFCJ=G=CBGC: H<9C895DD@=756@9HC6IG=B9GG9G
.<9,-7HG=;B98=BHC@5K=B'5F7<A589588=H=CB5@7<5B;9GHCDFCJ=G=CBGCB H<9C895DD@=756@9HCH<96IG=B9GG9G
'5B5;9A9BH<5GF9J=9K98H<9G9GH5HIHCFM7<5B;9G5B889H9FA=B98H<5HH<9=AD57HHCCIF 7CBGC@=85H98:=B5B7=5@GH5H9A9BHG=GBCHA5H9F=5@

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

("#)(!\$(*'

B577CF85B79K=H<-.CD=7#,.4,5;",769;05.CIFF9DCFH56@9G9;A9BHG8IF=B;H<9M95FG9B898979A69F 5B87CBG=GHC:HKCHMD9GC:7CAA9F7=5@F95@9GH5H9DFCD9FH=9GB5A9@MC::=795B8<CH9@5GK9@@5G5G9;A9BH :CFCIF@9B8=B;6IG=B9GG

'5B5;9A9BH=BH9FB5@@M9J5@I5H9GH<9CD9F5H=B;D9F:CFA5B795B8:=B5B7=5@F9GI@HGC:H<9G9;A9BHG 65G98CBB9HCD9F5H=B;=B7CA9
195@GC<5J979FH5=B;9B9F5@5B858A=B=GHF5H=J9@9J9@57H=J=H=9G=B7@I8=B;DI6@=77CAD5BM 9LD9BG9G@9;5@577CIBH=B;5B8H5LDF9D5F5H=CBH<5H5F9BCH7CBG=89F98G9D5F5H9CD9F5H=B;G9;A9BHG
.<9F9DCFH56@9G9;A9BHG 5F9577CIBH98:CFCBH<9G5A965G=GC:577CIBH=B;5G89G7F=698=B(CH9

CFCIFF95@9GH5H9G9;A9BHGK989:=B9B9HCD9F5H=B;=B7CA95GF9BH5@5B8CH<9FDFCD9FHM=B7CA95B89LD9BG9 F9=A6IFG9A9BHG@9GGDFCD9FHMF9@5H989LD9BG9G5B89L7@I89GBCB?DFCD9FHM=B7CA95B89LD9BG9G=BH9F9GH9LD9BG989DF97=5H=CB 5B85ACFH=N5H=CB7CFDCF5H9F9@5H98;9B9F5@5B858A=B=GHF5H=J99LD9BG9G;5=B@CGGCBG5@9C:F95@9GH5H9;5=B@CGGCB95F@M 9LH=B;I=G<A9BHC:896H=AD5=FA9BHC:F95@9GH5H9HF5BG57H=CB7CGHG5B8DFCJ=G=CB69B9:=H:CF=B7CA9H5L9G
CFCIF@9B8=B; G9;A9BHK989:=B9B9HCD9F5H=B;=B7CA95G=BH9F9GH=B7CA9B9HC:=BH9F9GH9LD9BG95B8;9B9F5@CJ9F<9589LD9BG9G

.<9B9HCD9F5H=B;=B7CA9C:CIFG9;A9BHG:CFH<9M95FG9B898979A69F5B8=G5G:C@@CKG

	.40A=343424<14A
				=BH<CIG5B8G
\$55824
,9J9BI9G
*FCD9FHM9LD9BG9G
)D9F5H=B;
!9B9F5@5B858A=B=GHF5H=J9
.CH5@DFCD9FHM9LD9BG9G
-9;A9BHB9HCD9F5H=B;=B7CA9SC::=79
>C4;
,9J9BI9G
*FCD9FHM9LD9BG9G
)D9F5H=B;
!9B9F5@5B858A=B=GHF5H=J9
.CH5@DFCD9FHM9LD9BG9G
-9;A9BHB9HCD9F5H=B;@CGG=B7CA9S<CH9@
!4=38=6
,9J9BI9G
&9B8=B;9LD9BG9G
#BH9F9GH9LD9BG9
LD9BG9F9=A6IFG9A9BHGHCF9@5H98D5FH=9GS@9B8=B;G9;A9BH
!9B9F5@5B858A=B=GHF5H=J9
.CH5@@9B8=B;9LD9BG9G
-9;A9BHB9HCD9F5H=B;=B7CA9S@9B8=B;
.CH5@G9;A9BHB9HCD9F5H=B;=B7CA9

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

F97CB7=@=5H=CBC:CIFG9;A9BHB9HCD9F5H=B;=B7CA9HCB9H=B7CA95HHF=6IH56@9HCH<9CAD5BM:CFH<9M95FG9B898 979A69F5B8=G5G:C@@CKG

	.40A=343424<14A
		=BH<CIG5B8G
.CH5@G9;A9BHB9HCD9F5H=B;=B7CA9
#BH9F9GH5B8CH<9F=B7CA9				S
GG9HA5B5;9A9BH5B8CH<9F:99GHCF9@5H98D5FH=9G
LD9BG9F9=A6IFG9A9BHGHCF9@5H98D5FH=9GS7CFDCF5H9
#BH9F9GH9LD9BG9
!9B9F5@5B858A=B=GHF5H=J9
.F5BG57H=CB7CGHG	S
9DF97=5H=CB5B85ACFH=N5H=CB
&CGGCB95F@M9LH=B;I=G<A9BHC:896H
#AD5=FA9BHC:F95@9GH5H9	S			S
!5=BCBG5@9C:F95@9GH5H9	S			S
&CGG#B7CA969:CF9DFCJ=G=CB:CF=B7CA9H5L9G
9B9:=HDFCJ=G=CB:CF=B7CA9H5L9G
(9H@CGG=B7CA9
(9H=B7CA9@CGG5HHF=6IH56@9HCBCB7CBHFC@@=B;=BH9F9GHG
(9H@CGG=B7CA95HHF=6IH56@9HCH<9CAD5BM

.<97CB89BG985GG9HG:CF957<C:H<9G9;A9BHG5GC:979A69F5B85@CB;K=H<75D=H5@9LD9B8=HIF9G5B8 @C5BCF=;=B5H=CBG:CFH<9M95FG9B898979A69F5B85F95G:C@@CKG

	424<14A
	=BH<CIG5B8G
>=34=B430BB4CB
)::=79
"CH9@
&9B8=B;
(CB?G9;A9BH5GG9HG
.CH5@5GG9HG

Notes to Consolidated Financial Statements as of December 31, 2020 and 2019 and for the Years Ended December 31, 2020, 2019 and 2018 (Continued)

	Year Ended December 31,
	2020			2019		2018
				(in thousands)
Capital expenditures (2):
Office (1)	S	8.514	S	16,006	ર્દ	12,669
Hotel		821		2,382		2,237
Total capital expenditures		9,335		18,388		14.906
Loan originations		53,524		39,592		74,234
Total capital expenditures and loan originations		62,859		57,980	D	89,140

(1) our consolidated balance sheet as of December 31, 2018 and sold in March 2019 (Note 3).

(2) dispositions through their respective disposition dates.

18. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following is a summary of quarterly financial information for the year ended December 31, 2020:

	Three Months Ended
	March 31,		June 30,				September 30, December 31,
						(in thousands, except per share amounts)
2020
Revenues	ਦਿੱਤੇ	25.535	S	16,510	S	17,334	S	17,829
Net loss	S	(1,256)	S	(4,041)		(5,330)	S	(4,388)
Net loss attributable to the Company	S	(1,260)	S	(4,043)		(5,323)	S	(4,390)
Net loss attributable to common stockholders	S	(6,787)	es	(8,141)	ક	(9,678)	S	(8,861)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE (1)
Basic	S	(0.46)	ಕೆ	(0.55)		(0.65)	ಕಾ	(0.60)
Diluted	S	(0.46)	ಕೆ	(0.55)		(0.65)	ಕೆ	(0.60)

(1) computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding.

**#>C4BC>>=B>;830C438=0=280;(C0C4<4=CB0B >5424<14A

0=3
 0=35>AC74.40AB=343424<14A

0=3
>=C8=D43**

.<9:C@@CK=B;=G5GIAA5FMC:EI5FH9F@M:=B5B7=5@=B:CFA5H=CB:CFH<9M95F9B898979A69F

	)7A44">=C7B=343
		"0A27		D=4		(4?C4<14A		424<14A
						=BH<CIG5B8G9L79DHD9FG<5F95ACIBHG
,9J9BI9G
(9H=B7CA9@CGG
(9H=B7CA9@CGG5HHF=6IH56@9HCH<9CAD5BM
(9H=B7CA9@CGG5HHF=6IH56@9HC7CAACBGHC7?<C@89FG
(.#()'&)--,#/.&.))'')( -.)%")&,-*,-",
5G=7
=@IH98

*-:CFH<9M95F?HC?85H9D9F=C8A5M8=::9F:FCAH<9GIAC:EI5FH9F@M*-5ACIBHG8I9HCH<9F9EI=F98A9H<C8:CF 7CADIH=B;*-=BH<9F9GD97H=J9D9F=C8G

B588=H=CB*-=G75@7I@5H98=B89D9B89BH@M:CF957<7CADCB9BH5B8A5M BCH69588=H=J98I9HCFCIB8=B;

ACIBHG<5J9699B58>IGH98HC;=J9F9HFC57H=J99::97HHCH<9,9J9FG9-HC7?-D@=H

(*(&*#)+#)(

)B\$5BI5FMK9=GGI98HCH<9)D9F5HCF5B5;;F9;5H9C:G<5F9GC:CIF-9F=9G*F9:9FF98-HC7?5G D5MA9BH=B@=9IC:75G<:CF
A=@@=CBC:5GG9HA5B5;9A9BH:99GCK98HCH<9)D9F5HCFIB89FH<9#BJ9GHA9BH'5B5;9A9BH ;F99A9BH=BF9GD97HC:H<9:CIFH<:=G75@EI5FH9FC:H<9M95F9B898979A69F
-I7<G97IF=H=9GK9F9=GGI98DIFGI5BHHC H<99L9ADH=CB:FCAF9;=GHF5H=CB7CBH5=B98=B-97H=CB5C:H<9-97IF=H=9G7H

H=G@=?9@MH<5HK9K=@@G99?HCD5MGCA9CF D5FHC:H<95GG9HA5B5;9A9BH:99G:CFD5FHC:H<9M95F9B8=B;979A69F=BG<5F9GC:-9F=9G*F9:9FF98-HC7?

)B'5F7<K9897@5F98575G<8=J=89B8C:
D9FG<5F9C:CIFCAACB-HC7?HC69D5=8CB'5F7< HCGHC7?<C@89FGC:F97CF85HH<97@CG9C:6IG=B9GGCB'5F7<

)B'5F7<K9897@5F985EI5FH9F@M75G<8=J=89B8C:
D9FG<5F9C:'.G-9F=9G*F9:9FF98-HC7? :CFH<9G97CB8EI5FH9FC:
.<98=J=89B8K=@@69D5M56@95G:C@@CKG
D9FG<5F9HC69D5=8CB'5MHC -9F=9G*F9:9FF98-HC7?<C@89FGC:F97CF8CB'5M
D9FG<5F9HC69D5=8CB\$IB9HC-9F=9G *F9:9FF98-HC7?<C@89FGC:F97CF8CB\$IB95B8
D9FG<5F9HC69D5=8CB\$I@MHC-9F=9G*F9:9FF98 -HC7?<C@89FGC:F97CF8CB\$I@M
CFG<5F9GC:-9F=9G*F9:9FF98-HC7?=GGI988IF=B;H<9G97CB8EI5FH9FC:H<9 8=J=89B8K=@@69DFCF5H98:FCAH<985H9C:=GGI5B795B8H<9ACBH<@M8=J=89B8D5MA9BHGK=@@F9:@97HGI7<DFCF5H=CB5G 5DD@=756@9

)B'5F7<K9897@5F985EI5FH9F@M75G<8=J=89B8C:
D9FG<5F9C:'.VG-9F=9G*F9:9FF98-HC7? :CFH<9G97CB8EI5FH9FC:
.<98=J=89B8K=@@69D5M56@95G:C@@CKG
D9FG<5F9HC69D5=8CB'5MHC -9F=9G*F9:9FF98-HC7?<C@89FGC:F97CF8CB'5M
D9FG<5F9HC69D5=8CB\$IB9HC-9F=9G *F9:9FF98-HC7?<C@89FGC:F97CF8CB\$IB95B8
D9FG<5F9HC69D5=8CB\$I@MHC-9F=9G*F9:9FF98 -HC7?<C@89FGC:F97CF8CB\$I@M
CFG<5F9GC:-9F=9G*F9:9FF98-HC7?=GGI988IF=B;H<9G97CB8EI5FH9FC:H<9 8=J=89B8K=@@69DFCF5H98:FCAH<985H9C:=GGI5B795B8H<9ACBH<@M8=J=89B8D5MA9BHGK=@@F9:@97HGI7<DFCF5H=CB5G 5DD@=756@9

(2743D;4K'40;BC0C40=322D= 424<14A? 8=C7>DB0=3B

			=8C80;>BC	#4C <?A>E4<4=CB	A>BB<>D=C0C,78270AA843
%A>?4ACH#0<4 8CH0=3(C0C4	=2D<1A0=24B	!0=3	D8;38=6 0=3 <?A>E4<4=CB	,A8C4\$55B (8=24 2@D8B8C8>=	!0=3	D8;38=6 0=3 <?A>E4<4=CB	)>C0;	22 4?A42	.40AD8;C '4=>E0C43	.40A>5 2@D8B8C8>=
((+%'
-CB;F9GG J9BI9
IGH=B.2
%5=G9F*@5N5
)5?@5B8
%5=G9F@5N55F?=B; &CH
)5?@5B8	S								(
1=@G<=F9 CI@9J5F8
&CGB;9@9G
1=@G<=F9 CI@9J5F8
&CGB;9@9G
1=@G<=F9 CI@9J5F8
&CGB;9@9G
&=B86@589'98=5 9BH9F
&CGB;9@9G
"CK5F8-HF99H
-5B F5B7=G7C
1=@G<=F9 CI@9J5F8
&CGB;9@9G
H<-HF99H
IGH=B.2	S			S
16'.
-<9F5HCB!F5B8"CH9@
-57F5A9BHC
-<9F5HCB!F5B8"CH9@ *5F?=B;,9H5=@
-57F5A9BHC	S

.<9G9DFCD9FH=9G7C@@5H9F5@=N9H<9F9JC@J=B;7F98=H:57=@=HMK<=7<<585
A=@@=CBCIHGH5B8=B;65@5B795GC:979A69F

.<95;;F9;5H9;FCGG7CGHC:DFCD9FHM=B7@I89856CJ9:CF:989F5@=B7CA9H5LDIFDCG9G5DDFCL=A5H9G
A=@@=CBIB5I8=H985GC: 979A69F

.<9:C@@CK=B;H56@9F97CB7=@9GCIF=BJ9GHA9BHG=BF95@9GH5H9:FCA\$5BI5FMHC979A69F

	.40A=343424<14A
				=BH<CIG5B8G
=E4BC<4=CB8='40;BC0C4
5@5B7969;=BB=B;C:D9F=C8
88=H=CBG
#ADFCJ9A9BHG
*FCD9FHM57EI=G=H=CBG				S
98I7H=CBG
GG9HG<9@8:CFG5@9		S		S
GG9HG5@9G		S				S
#AD5=FA9BH		S				S
,9H=F9A9BHG
5@5B799B8C:D9F=C8

.<9:C@@CK=B;H56@9F97CB7=@9GH<9577IAI@5H9889DF97=5H=CB:FCA\$5BI5FMHC979A69F

.40A=343424<14A
	S		S
	S				S
				=BH<CIG5B8G

Schedule IV-Mortgage Loans on Real Estate December 31, 2020 (dollars in thousands, except footnotes)

Principal

Geographic Dispersion of Collateral	Number of Loans		Size of Loans From		To		Interest Rate		Final Maturity Date Range		Carrying Amount of Mortgages (1)		Amount of Loans Subject to Delinquent Principal or "Interest"
SBA 7(a) Loans - States 2% or greater (2) (3):
Indiana	16	ತಿ	100	S	990	4.75%	to	6.00%	05/14/36		12/22/45	ತಿ	8,368	સ્ત્રે
Texas	23	S	10	ಕ್ಕಿ	1,000	4.13%	to	6.00%	06/19/21		10/24/44		7,885
Ohio	20	ਦਿੱਤੇ	90	ਦੇ ਰੇ	740	4.75%	to	6.00%	03/26/37		09/25/45		6,941
Michigan	17	ಕಾ	10	S	તેત્વે તે તે 10	4.75%	to	6.00%	10/10/33		12/22/45		5,308
Florida	9	ਦਿੱਤੇ	60	ਦਿੱਤੇ	1.090	5.00%	to	6.00%	06/29/32		01/26/44		3,758
Pennsylvania	4	ಕಾ	310	ಕ್ಕಿ	740	5.00%	to	6.00%	03/05/40		11/29/43		2,174
Illinois	8	ਦਿੱਤੇ	50	ತಿ	540	5.00%	to	6.00%	09/17/35		09/21/45		1,959
North Carolina	5	S	70	S	620	5.25%	to	6.00%	09/08/32		08/28/45		1,651
Colorado	5	ਦਿੱਤੇ	60	ತಿ	540	4.75%	to	6.00%	01/21/36		09/15/45		1,629
Louisiana	4	ಕಾ	110	S	600	5.00%	to	6.00%	11/17/41		05/21/44		1,525
Kentucky	6	S	90	ತಿ	420	5.00%	to	6.00%	04/09/35		09/22/45		1,487
Alabama	6	S	30	S	490	5.00%	to	5.75%	07/27/25		12/16/45		1,467
South Carolina	4	S	280	S	400	5.00%	to	6.00%	11/06/40		07/30/44		1,337
Georgia	5	S	120	S	360	5.25%	to	6.00%	12/28/34		09/22/45		1,226
Virginia	4	S	200	ತಿ	470	5.25%	to	6.00%	07/20/37		12/27/44		1,202
Mississippi	4	S	140	S	510	5.25%	to	6.00%	08/31/29		08/31/43		1,175
Other (4)	34	S	10	S	890	4.75%	to	6.00%	03/29/22		09/25/45		8,315		152
Government guaranteed portions (5)													4,009
SBA 7(a) loans, subject to secured borrowings (6)													8,458
Paycheck Protection Program loans, net (7)													14,089
General reserves													(828)
	174											S	83,135	(8) \$	152

(1)

(2) Includes \$1.1 million of loans with subordinate lien positions.

(3)

(4)

(5) to us related to these portions of the guaranteed loans, the geographic information is not presented as it is not meaningful.

Represents the guaranteed portion of SBA 7(a) loans which were sold with the proceeds received from the sale reflected as (6) secured borrowings. For Federal income tax purposes, these proceeds are treated as sales and reduce the carrying value of loans receivable.

(7) presented as it is not meaningful. Face value of these loans is \$14.5 million.

(8)

(2743D;4+K">AC6064!>0=B>='40;BC0C4>=C8=D43 424<14A? 8=C7>DB0=3B

	.40A=343424<14A
5@5B7969;=BB=B;C:D9F=C8
88=H=CBG8IF=B;D9F=C8
(9K@C5BG
)H<9F?89:9FF5@:CF7C@@97H=CBC:7CAA=HA9BH:99GB9HC:7CGHG
)H<9F?577F9H=CBC:@C5B:99G5B88=G7CIBHG
98I7H=CBG8IF=B;D9F=C8
C@@97H=CBGC:DF=B7=D5@
CF97@CGIF9G						S
CGHC:ACFH;5;9GGC@8B9H
)H<9F?F97@5GG=:=75H=CB:FCAG97IF986CFFCK=B;G		S		S		S
)H<9F?658896H9LD9BG9
5@5B799B8C:D9F=C8

!"!

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

):81??@41/;:@1D@;@41>C5?1>1=A5>1?>121>1:/1?@;H@41;9<-:EIHA?IHC1I-:0H;A>I->1?;818E@;" ;991>/5-8(>A?@;><;>-@5;:-:0:;@@;-:E;25@??A.?505->51?;>-22585-@1?

\$A>/4->@1><>;B501?@4-@C19-E5??A1A<@; ?4->1?;2;A>/;99;:?@;/7<->B-8A1- <1>?4->1;A> H;99;:'@;/7I-:0A<@; ?4->1?;2;A><>121>>10?@;/7<->B-8A1- <1>?4->1;2C45/4 ?4->1? ->1/8-??52510-?;A>'1>51?%>121>>10'@;/7;A>H'1>51?%>121>>10'@;/7I
 ?4->1?->1/8-??52510-?;A>'1>51? %>121>>10'@;/7;A>H'1>51?%>121>>10'@;/7I-:0 ?4->1?->1/8-??52510-?;A>'1>51?!%>121>>10'@;/7;A> H'1>51?!%>121>>10'@;/7I\$A>/4->@1>-A@4;>5F1?;A>.;->0;205>1/@;>?;A>H;->0;25>1/@;>?IC5@4@41-<<>;B-8;2- 9-6;>5@E;2;A>1:@5>1;->0;25>1/@;>?-:0C5@4;A@?@;/74;801>-<<>;B-8@;-91:0;A>/4->@1>@;5:/>1-?1;>01/>1-?1@41 -33>13-@1:A9.1>;2?4->1?;2?@;/7;>@41:A9.1>;2?4->1?;2?@;/7;2-:E/8-??;>?1>51?@4-@C1->1-A@4;>5F10@;5??A1

?;2"->/4? ?@41>1C1>1? ?4->1?;2;99;:'@;/7???4->1?;2'1>51?%>121>>10'@;/7 ?4->1?;2'1>51?%>121>>10'@;/7 ?4->1?;2'1>51?!%>121>>10'@;/7-:0 ?'1>51?+->>-:@?-? 0125:105:H'1>51?+->>-:@?I.18;C5??A10-:0;A@?@-:05:3

):01>-<<85/-.81"->E8-:08-C;A>?@;/74;801>?->1:;@31:1>-88E85-.812;>;A>01.@?;>;.853-@5;:??;818E-?->1?A8@ ;2@415>?@-@A?-??@;/74;801>?

;>-01?/>5<@5;:;2>181B-:@<>;B5?5;:?;2;A>/4->@1>-:0.E8-C?@4-@9-E4-B1-:1221/@;2018-E5:30121>>5:3;> <>1B1:@5:3-/4-:315:/;:@>;8;2@41;9<-:E<81-?1?11H1>@-5:%>;B5?5;:?;2@41"!-:0\$A>4->@1>-:0E8-C?I .18;C

!

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

&#'A.61/@@;@41<>121>1:@5-8>534@?;2;A><>121>>10?@;/7-:0-:E;@41>/8-??;>?1>51?;2;A>/-<5@-8?@;/7-:0 @;@41<>;B5?5;:?;2;A>/4->@1>>13->05:3@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>;2;A>/-5@-8?@;/7?11H1@-5:%>;B5?5;:? ;2@41"!-:0\$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C4;801>?;2?4->1?;2;A>;99;: '@;/7->11:@5@810@;>1/15B105B501:0?-:0;@41>05?@>5.A@5;:?;:?A/4?4->1?52-?-:0C41:-A@4;>5F10.E;A>;->0;2 5>1/@;>?;A@;22A:0?813-88E-B-58-.81@41>12;>-:001/8->10.EA?-:0@;?4->1>-@-.8E5:@41-??1@?;2;A>;9<-:E813-88E -B-58-.812;>05?@>5.A@5;:@;;A>?@;/74;801>?5:@411B1:@;2;A>85=A50-@5;:05??;8A@5;:;>C5:05:3A-2@1-E91:@; 1?@-.85?491:@;2>1?1>B1?2;>-887:;C:01.@?-:085-.585@51?;2;A>;9<-:E

\$?\$#'A.61/@@;@41<>;B5?5;:?;2;A>/4->@1>>13->05:3@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>;2;A> /-5@-8?@;/7?11H1@-5:%>;B5?5;:?;2@41"!-:0\$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I .18;C-:01D/1@-?9-E;@41C5?1.1?1/525105:@41@19?;2-:E/8-??;>?1>51?;2;A>/-5@-8?@;/71-/4;A@?@-:05:3?4-1 ;2;A>;99;:'@;/71:@5@81?@414;801>@;;:1B;@1;:-889-@@1>??A.95@@10@;-B;@1;2?@;/74;801>?5:/8A05:3@41181/@5;:;2 05>1/@;>?-:01D/1<@-?<>;B5010C5@4>1?1/@@;-:E;@41/8-??;>?1>51?;2?@;/7@414;801>?;2?4->1?;2;99;:'@;/7C588

<;??1??@411D/8A?5B1B;@5:3<;C1>(41>15?:;/A9A8-@5B1B;@5:35:@41181/@5;:;2;A>05>1/@;>?<8A>-85@E;2-88@41B;@1? /-?@-@-911@5:3;2?@;/74;801>?0A8E/-8810-:0-@C45/4-=A;>A95?<>1?1:@?4-88.1?A225/51:@@;181/@-05>1/@;>-/4?4->1 ;2;99;:'@;/71:@5@81?@414;801>@41>1;2@;B;@12;>-?9-:E5:05B50A-8?-?@41>1->105>1/@;>?@;.1181/@10-:02;>C4;?1 181/@5;:@414;801>5?1:@5@810@;B;@19-6;>5@E;2@41B;@1?/-?@-@-911@5:3;2?@;/74;801>?0A8E/-8810-:0-@C45/4- =A;>A95?<>1?1:@?4-88.1?A225/51:@@;-<<>;B1-:E;@41>9-@@1>C45/49-E<>;<1>8E/;91.12;>1@41911@5:3A:81??9;>1 @4-:-9-6;>5@E;2@41B;@1?/-?@5?>1=A5>10.E@41"!;>.E;A>/4->@1>

#\$\$A>;99;:'@;/75?@>-010;:@41#-?0-=8;.-8"->71@H#-?0-=IA:01>@41@5/71>?E9.;8H"(I -:0;:@41(18B5B'@;/7D/4-:31@41H('IA:01>@41@5/71>?E9.;8H"(!I

"#"-\$?#\$""(41@>-:?21>-31:@-:0>135?@>->2;>@41;99;:'@;/75?91>5/-:'@;/7(>-:?21>-:0 (>A?@;9<-:E

!

(41'1>51?%>121>>10'@;/7>-:7?C5@4>1?1/@@;05B501:0534@?

• G ?1:5;>@;@41'1>51?!%>121>>10'@;/7;99;:'@;/7-:0-:E;@41>/8-??;>?1>51?;2;A>/-5@-8?@;/7@41@19?;2 C45/41D<>1??8E<>;B501@4-@;A>'1>51?%>121>>10'@;/7>-:7??1:5;>@;?A/4/8-??;>?1>51?-?@;05B501:0>534@?
• G ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7-:01-/4;@41>/8-??;>?1>51?;2;A>/-<5@-8?@;/75:/8A05:3/-<5@-8?@;/7 5??A105:@412A@A>1@41@1>9?;2C45/41D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7?;:<->5@EC5@4@41'1>51? %>121>>10'@;/7-?@;05B501:0>534@?
• G 6A:5;>@;1-/4/8-??;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/4 1D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7??1:5;>@;@41'1>51?%>121>>10'@;/7-?@;05B501:0>534@?-:0
• G 6A:5;>@;-88;A>1D5?@5:3-:02A@A>101.@;.853-@5;:?

(41'1>51?%>121>>10'@;/7>-:7?C5@4>1?1/@@;534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:

• G ?1:5;>@;@41'1>51?!%>121>>10'@;/71D/1<@-?01?/>5.10.18;C;99;:'@;/7-:0-:E;@41>/8-??;>?1>51?;2;A> /-5@-8?@;/7@41@19?;2C45/41D<>1??8E<>;B501@4-@@41'1>51?%>121>>10'@;/7>-:7??1:5;>@;?A/4/8-??;>?1>51? -?@;>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:
• G ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7'1>51?!%>121>>10'@;/7@;@411D@1:@;2@41'1>51?!'@-@10*-8A1-? 0125:105:H'1>51?!%>121>>10'@;/7I.18;C-:0C5@41-/4/8-??;>?1>51?;2;A>/-<5@-8?@;/75:/8A05:3/-<5@-8?@;/7 5??A105:@412A@A>1@41@1>9?;2C45/41D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7?;:<->5@EC5@4@41'1>51? %>121>>10'@;/7-?@;>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:
• G 6A:5;>@;1-/4/8-??;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/4 1D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7??1:5;>@;@41'1>51?%>121>>10'@;/7-?@;>534@?A<;:;A> 85=A50-@5;:C5:05:3A<;>05??;8A@5;:-:0
• G 6A:5;>@;-88;A>1D5?@5:3-:02A@A>101.@;.853-@5;:?

\$\$%-/4?4->1;2'1>51?%>121>>10'@;/74-?-?@-@10B-8A1;2- ?A.61/@@;-<<>;<>5-@1-06A?@91:@5: 8595@10/5>/A9?@-:/1?01?/>5.105:H06A?@91:@;2@41'1>51?'@-@10*-8A15:;::1/@5;:C5@4-&1019<@5;:I.18;C@41 H'1>51?'@-@10*-8A1I

&#'A.61/@@;@41<>121>1:@5-8>534@?;2@414;801>?;2-:E/8-??;>?1>51?;2;A>/-5@-8?@;/7-:75:3?1:5;>@; @41'1>51?%>121>>10'@;/752-:E?A/4/8-??;>?1>51?;2?@;/75?-A@4;>5F105:@412A@A>1@414;801>?;2'1>51?%>121>>10 '@;/7->11:@5@810@;>1/15B152-?-:0C41:-A@4;>5F10.E;A>;->0;25>1/@;>?-:001/8->10.EA?;A@;2813-88E-B-58-.81 2A:0?/A9A8-@5B1/-?405B501:0?;:1-/4?4->1;2'1>51?%>121>>10'@;/7-@-:-::A-8>-@1;225B1-:0252@E4A:0>10@4?;2- <1>/1:@ ;2@41'1>51?'@-@10*-8A1@41H'1>51?5B501:0I

(41'1>51?5B501:0-//>A1?-:05?/A9A8-@5B12>;9@411:0;2@419;?@>1/1:@<1>5;02;>C45/4@41'1>51? 5B501:04-?.11:<-50;>52:;'1>51?5B501:04-?.11:<-502>;9@410-@1;25??A-:/1;2-35B1:?4->1;2'1>51? %>121>>10'@;/7(41'1>51?5B501:0-//>A1?-:05?-50;:@41.-?5?;2-0-EE1-/;:?5?@5:3;2@C18B1 0-E9;:@4? (41'1>51?5B501:0-//>A1?C41@41>;>:;@5C14-B11->:5:3?55@41>1->12A:0?813-88E-B-58-.812;>@41<-E91:@;2 ?A/405B501:0?-:0555?A/405B501:0?->1-A@4;>5F10.E;A>;->0;25>1/@;>?;>01/8->10.EA?//>A10'1>51?5B501:0? 0;:;@.1->5:@1>1?@

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

;801>?;2;A>?4->1?;2'1>51?%>121>>10'@;/7->1:;@1:@5@810@;-:E05B501:05:1D/1??;22A88/A9A8-@5B1'1>51? 5B501:0?;:?A/4?4->1?):81??2A88/A9A8-@5B1'1>51?5B501:0?2;>-88<-?@05B501:0<1>5;0?4-B1.11:;>->1 /;:@19<;>-:1;A?8E01/8->10-:0<-50;>01/8->10-:0-?A9?A225/51:@2;>@41-E91:@@411;25??1@-<->@2;><-E91:@C1C588 :;@

• G 01/8->1-:0<-E;>01/8->1-:0?1@-<->@2;>-E91:@05B501:0?-:0C1C588:;@01/8-1-:09-71-:E;@41>05?@>5.A@5;: ;2/-?4;>;@41><>;<1>@E;@41>@4-:05B501:0?;>;@41>05?@>5.A@5;:?<-505:?4->1?;2?@;/7>-:75:36A:5;>@;@41 '1>51?%>121>>10'@;/7-?@;@4105B501:0>534@?;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:-:0 ;<@5;:?C->>-:@?;>>534@?@;/4-?1?A/4?4->1?05>1/@8E;>5:05>1/@8E;:;>C5@4>1?1/@@;-:E?4-1?;2;99;: '@;/7'1>51?%>121>>10'@;/7'1>51?!%>121>>10'@;/7;>-:E;@41>/8-??;>?1>51?;2;A>?@;/7>-:75:36A:5;>@;;> ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7-?@;05B501:0>534@?;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;> 05??;8A@5;:2;>-:E<1>5;0;>
•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

(;@411D@1:@:1/1??->E@;<>1?1>B1;A>?@-@A?-?-&(@412;>13;5:3?1:@1:/14;C1B1>C588:;@<>;45.5@01/8->5:3 ;><-E5:3;>?1@@5:3-<->@2;>-E91:@-:E05B501:0;;@41>05?@>5.A@5;:;:@41;99;:'@;/7;>@41>1019<@5;:;2;A>/-<5@-8 ?@;/7?A-:@@;@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>/;:@-5:105:;A>/4->@1>?11H1>@-5:%>;B5?5;:?;2@41"!-:0 \$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C

\$\$\$ \$"135::5:3;:@410-@1;2;>535:-85??A-:/1;2-:E35B1:?4->1?;2'1>51? %>121>>10'@;/7@414;801>4-?@41>534@@;>1=A5>1@41;9-:E@;10119?A/4?4->1?-@->1019<@5;:<>5/11=A-8@;- <1>/1:@-31;2@41'1>51?'@-@10*-8A1?1@2;>@4.18;C<8A?-:E-//>A10-:0A:<-50'1>51?5B501:0?

• G 2;>-88?A/4>1019<@5;:?1221/@5B1<>5;>@;@41?1/;:0-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2?A/4?4->1? <>;B50104;C1B1>@4-@@41;->0;25>1/@;>?;>-:-A@4;>5F10;225/1>;2@41;9<-:E52;:15?01813-@10?A/4 <;C1>.E@41;->0;25>1/@;>?2>;9@591@;@5915:5@?05?/>1@5;:9-E-A@4;>5F1->10A/@5;:;2?A/4<1>/1:@-31@;
• G ?2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@41?1/;:0-::5B1>?->E.A@<>5;>@;@41@45>0-::5B1>?->E;2@41 0-@1;2;>535:-85??A-:/1;2?A/4?4->1?
• G 2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@41@45>0-::5B1>?->E.A@<>5;>@;@412;A>@4-::5B1>?->E;2@410-@1 ;2;>535:-85??A-:/1;2?A/4?4->1?
• G 2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@412;A>@4-::5B1>?->E.A@<>5;>@;@41252@4-::5B1>?->E;2@410-@1 ;2;>535:-85??A-:/1;2?A/4?4->1?-:0
• G 2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2?A/4 ?4->1?

#;@C5@4?@-:05:3@412;>13;5:3C5@4>1?1/@@;-:E1019@5;:?1221/@5B1;:;-2@1>@41?1/;:0-::5B1>?->E.A@<>5;> @;@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1@41;->0;25>1/@;>?;>-:-A@4;>5F10;225/1>;2@41;9<-:E52;:1 5?01813-@10?A/4<;C1>.E@41;->0;25>1/@;>?2>;9@591@;@5915:5@?05?/>1@5;:9-E-A@4;>5F1@41;9-:E@;5:/1-?1 @41>1019<@5;:<>5/12>;95@?1D5?@5:381B18@;-:-9;A:@.1@C11: -:0 5:/8A?5B1;2@41'1>51?'@-@10*-8A1<8A? -:E-//>A10-:0A:<-50'1>51?5B501:0?@4>;A34-:05:/8A05:3@410-@125D102;>?A/4>1019<@5;:

-/44;801>;2'1>51?%>121>>10'@;/79-E1D1>/5?1?A/4>1019<@5;:>534@.E0185B1>5:3-C>5@@1::;@5/1@41>1;2@; @41;9-:E-:0@411019<@5;:<>5/1C588.1<-50.E@41;9<-:E;:-0-@1?181/@10.E@41;9-:E@4-@5?:;8-@1@4-: 0-E?-2@1>?A/4:;@5/15?>1/15B10.E@41;9<-:E

\$? \$'\$"135::5:3;:@410-@1;2;>535:-85??A-:/1-:01:05:3;:.A@:;@ 5:/8A05:3@41?1/;:0-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2-:E?4->1?;2'1>51?%>121>>10'@;/7C1C588>10119?A/4 ?4->1?4180.E-:-@A>-8<1>?;:A<;:45?;>41>01-@4-@@41C>5@@1:>1=A1?@;2@414;801>J?1?@-@1-@->1019<@5;:<>5/11=A-8@; ;2@41'1>51?'@-@10*-8A1<8A?-:E-//>A10-:0A:<-50'1>51?5B501:0?@4>;A34-:05:/8A05:3@410-@125D102;> ?A/4>1019<@5;:

\$? \$)\$ )+14-B1@41>534@@;>10119-:E;>-88?4->1?;2;A>'1>51?%>121>>10'@;/7 2>;9-:0-2@1>@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2?A/4?4->1?-@->1019<@5;:<>5/11=A-8@; ;2@41 '1>51?'@-@10*-8A1<8A?-:E-//>A10-:0A:<-50'1>51?5B501:0?221C1>@4-:-88@41;A@?@-:05:3?4->1?;2'1>51? %>121>>10'@;/7->1@;.1>1011910@41;9-:EC588?181/@@4;?1?4-1?@;.1>1011910<>;>-@-;>5:?A/49-::1>-?;A> ;->0;25>1/@;>?9-E01@1>95:1

+19-E1D1>/5?1;A>>1019<@5;:>534@.E0185B1>5:3-C>5@@1::;@5/1@41>1;2@;@414;801>?;2?4->1?;2'1>51? %>121>>10'@;/7@;.1>1011910-/4?A/4:;@5/1C588?@-@1@410-@1;:C45/4@41>1019<@5;:.EA??4-88;//A>C45/40-@1C588 .1:;21C1>@4-: :;>9;>1@4-:? 0-E?2;88;C5:3@41:;@5/10-@1

22A88/A9A8-@5B1'1>51?5B501:0?;:-88;A@?@-:05:3?4->1?;2'1>51?%>121>>10'@;/74-B1:;@.11:01/8->10-:0 <-50;>01/8->10-:0?1@-<->@2;>-E91:@2;-88<-?@05B501:0<1>5;0?:;?4->1?;2@41'1>51?%>121>>10'@;/79-E.1 >1011910-@@41;@5;:;2@41;9amp#45;amp#58;amp#69;amp#65;amp#58;amp#56;amp#49;amp#63;amp#63;amp#45;amp#56;amp#56;amp#59;amp#65;amp#64;amp#63;amp#64;amp#45;amp#58;amp#48;amp#53;amp#58;amp#51;amp#63;amp#52;amp#45;1?;2@41'151?%>121>>10'@;/7->1?59A8@-:1;A?8E >1011910-:01D/1<@-?<>;B5010.E@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>?1@2;>@45:;A>/4->@1>?11H1>@-5:%>;B5?5;:? ;2@41"!-:0\$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C:15@41>@41;9<-:E:;>-:E;2 5@?-22585-@1?9-E/4-?1;>;@41>C5?1-/=A5>1?4->1?;2'1>51?%>121>>10'@;/7;@41>C5?1@4-:?A-:@@;-/4-?1;> 1D/4-:31;221>9-01;:@41?-91@1>9?@;-884;801>?;2?4->1?;2'1>51?%>121>>10'@;/7

)\$\$? \$")<;:-:E>1019<@5;:;2'1>51?%>121>>10'@;/7.E-4;801>;>@41;9<-:E;> A;:@4101-@4;2-4;801C1C588-E@411019<@5;:<>5/15:/-?4;>;:;>-2@1>@4125>?@-::5B1>?->E;2@415??A-:/1;2?4->1? ;2'1>51?%>121>>10'@;/7@;.1>1011910-@;A>;<@5;:-:05:;A>?;8105?/>1@5;:5:1=A-8B-8A1@4>;A34@415??A-:/1;2 ?4->1?;2;99;:'@;/7.-?10;:@41B;8A91C1534@10-B1>-31<>5/1;2;A>;99;:'@;/72;>@41? @>-05:30-E?<>5;>@; @41>1019<@5;:-?01?/>5.105:@41->@5/81??Aamp#56;amp#49;amp#57;amp#49;amp#58;amp#64;amp#45;E@;;A/4->@1>0125:5:3@41@1>9?;2@41'1>51?%>121>>10'@;/7

2@41;9<-:E181/@?@;-E@411019<@5;:<>5/15:;99;:'@;/7@41;9<-:EC588/-A?1@41@>-:?21>-31:@@;-? ?;;:-?<>-/@5/-.81.A@:;@8-@1>@4-:@4>11.A?5:1??0-E?-2@1>@411221/@5B10-@1;2?A/4>1019<@5;:>135?@1>@41:A9.1>;2 ?4->1?;2;99;:'@;/7?A/44;801>5?1:@5@810@;>1/15B1-?->1?A8@;2?A/4>1019<@5;:(41<1>?;:;><1>?;:?1:@5@810@; >1/15B1@41?4->1?;2;99;:'@;/75??A-.81A<;:?A/4>1019<@5;:C588.1@>1-@102;>-88;?1?-?@411/;>04;801>;> 4;801>?;2?A/4?4->1?;2;99;:'@;/7-?;2@411221/@5B10-@1;2?A/4>1019<@5;:

\$A>;.853-@5;:@;>10119-:E?4->1?;2;A>'1>51?%>121>>10'@;/75?8595@10@;@411D@1:@@4-@5C10;:;@4-B1 ?A225/51:@2A:0?-B-58-.81@;2A:0-:E?A/4>1019<@5;:5:C45/4/-?1C1C588.1>1=A5>10@;>10119C5@4?4->1?;2;99;: '@;/7;>55C1->1>1?@>5/@10.E-<<85/-.818-C;A>/4->@1>;>/;:@>-/@A-8;.853-@5;:?2>;99-75:3?A/4>1019<@5;:

-%#\$\$\$
"#-\$\$%\$'\$? \$2/1>@-5:1B1:@?-221/@5:3@41;99;: '@;/7?A/4-?>1/-5@-85F-@5;:??@;/705B501:0??@;/7?amp#56;amp#53;amp#64;amp#63;amp#63;amp#64;amp#59;amp#47;amp#55;amp#47;amp#59;amp#57;amp#46;amp#53;amp#58;amp#45;amp#64;amp#53;amp#59;amp#58;amp#63;1/8-??525/-@5;:?9131>?;>?5958->1B1:@? ;//A>0A>5:3@41? @>-05:30-E?<>5;>@;->1019<@5;:;2'1>51?%>121>>10'@;/7C1C588-06A?@@41'1>51?'@-@10*-8A1?; @4-@?A/4>1019@5;:?4-881:@5@81@414;801@;>1/15B1@41-33>13-@1:A9.1>;2?4->1?;2;99;:'@;/7;>/-?4C45/452@41 >1019<@5;:4-0;//A>>10599105-@18E<>5;>@;?A/41B1:@?A/44;801>C;A804-B1;C:10A<;:?A/4>1019<@5;:-:0.11: 1:@5@810@;>1/15B10?A-:@@;@411B1:@-221/@5:3;A>;99;:'@;/7

"\$
"##;2>-/@5;:-8?4->1?;2;99;:'@;/7C588.15??A10A<;:>1019<@5;:;2-:E?4->1?;2'1>51? %>121>>10'@;/7&-@41>-:E2>-/@5;:-8:A9.1>;2?4->1?;2;99;:'@;/7@;.15??A10A<;:-:E>1019@5;:;2@41'151? %>121>>10'@;/7C588.1>;A:0100;C:@;@41:1->1?@C4;81:A9.1>;2?4->1?;2;99;:'@;/7

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

2A;:@41B;8A:@-E;>5:B;8A:@->E85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2@41;9<-:E@41-B-58-.81-??1@?;2@41 ;9<-:E;><>;/110?@41>1;205?@>5.A@-.81-9;:3@414;801>?;2@41'1>51?%>121>>10'@;/7->15:?A225/51:@@;<-E5:2A88@41 -.;B101?/>5.1085=A50-@5;:<>121>1:/1-:0@4185=A50-@5:3-E91:@?;:-:E?4-1?;2-:E/8-??;>?1>51?;2?@;/7>-:75:3;: <->5@E@;@41'1>51?%>121>>10'@;/7C5@4>1?1/@@;85=A50-@5;:05??;8A@5;:;C5:05:3A51?%->5@E'@;/7I@41:?A/4 -??1@?;>@41<>;/110?@41>1;2C588.105?@>5.A@10-9;:3@414;801>?;2@41'1>51?%>121>>10'@;/7-:0-:E?A/4'1>51? %->5@E'@;/7>-@-.8E5:@41?-91<>;<;>@5;:-?@41>1?<1/@5B1-9;A:@?@4-@C;A80.1<-E-.81;:?A/4'1>51?%>121>>10'@;/7 -:0-:E?A/4'1>51?%->5@E'@;/752-88-9;A:@?-E-.81@411;:C1>1<-505:2A88

2@1><-E91:@;2@412A88-9;A:@;2@4185=A50-@5:305?@>5.A@5;:?@;C45/4@41E->11:@5@810@414;801>?;2?4->1?;2 '1>51?%>121>>10'@;/7C5884-B1:;>534@;>/8-59@;-:E;2;A>>19-5:5:3-??1@?\$A>/;:?;850-@5;:91>31>;>/;:B1>?5;: C5@4;>5:@;-:E;@41>/;><;>-@5;:@>A?@;>;@41>1:@5@E@41/;:?;850-@5;:;>91>31>;2-:E;@41>/;><;>-@5;:@>A?@;>1:@5@EC5@4 ;>5:@;A?@41?-81;>@>-:?21>;2-:E;>-88;A>-??1@?;>.A?5:1??;>-?@-@A@;>E?4->11D/4-:31C588:;@.1011910@;/;:?@5@A@1 -85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2@41;9<-:E

:01@1>95:5:3C41@41>-05?@>5.A@5;:;@41>@4-:A;:B;8A:@-E;>5:B;8A:@->E85=A50-@5;:.E05B501:0>1019<@5;: ;>;@41>-/=A5?5@5;:;2?4->1?;2;A>?@;/7;>;@41>C5?15?<1>95@@10A:01>@41"!-9;A:@?@4-@C;A80.1:1101052C1 C1>1@;.105??;8B10-@@41@591;205?@>5.A@5;:@;?-@5?2E@41<>121>1:@5-8>534@?A;:05??;8A@5;:;24;801?;2@41'1>51? %>121>>10'@;/7C588:;@.1-0010@;;A>@;@-885-.585@51?

\$?\$#(41'1>51?%>121>>10'@;/74-?:;B;@5:3>534@?-:0@4A?4-?:;>534@?@;B;@1;:-:E05??;8A@5;: /4->@1>-91:091:@91>31>?-81;2-88;>?A.?@-:@5-88E-88;2;A>-??1@??4->11D/4-:31;>/;:B1>?5;:;>-:E-91:091:@@;@41 @1>9?;2@41'1>51?%>121>>10'@;/7

(#\$+14-B1:;@9-01-:00;:;@<8-:;:9-75:3-:-<85/-@5;:@;85?@?4-1?;2'1>51?%>121>>10 '@;/7;:#-?0-=-:E;@41>:-@5;:-8?1/A>5@51?1D/4-:31;>:-@5;:-88E>1/;3:5F10@>-05:3?E?@19;>@41('

"#"-\$?#\$""(41@>-:?21>-31:@-:0>135?@>->2;>@41'1>51?%>121>>10'@;/75?91>5/-:'@;/7 (>-:?21>-:0(>A?@;9<-:E

!

(41'1>51?%>121>>10'@;/7>-:7?C5@4>1?1/@@;05B501:0534@?

• G ?1:5;>@;@41'1>51?!%>121>>10'@;/7;99;:'@;/7-:0-:E;@41>/8-??;>?1>51?;2;A>/-5@-8?@;/7@41@19?;2 C45/41D<>1??8E<>;B501@4-@;A>'1>51?%>121>>10'@;/7>-:7??1:5;>@;?A/4/8-??;>?1>51?-?@;05B501:0>534@?
• G ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7-:01-/4;@41>/8-??;>?1>51?;2;A>/-<5@-8?@;/75:/8A05:3/-<5@-8?@;/7 5??A105:@412A@A>1@41@1>9?;2C45/41D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7?;:<->5@EC5@4@41'1>51? %>121>>10'@;/7-?@;05B501:0>534@?
• G 6A:5;>@;1-/4/8-??;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/4 1D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7??1:5;>@;@41'1>51?%>121>>10'@;/7-?@;05B501:0>534@?-:0
• G 6A:5;>@;-88;A>1D5?@5:3-:02A@A>101.@;.853-@5;:?

(41'1>51?%>121>>10'@;/7>-:7?C5@4>1?1/@@;534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:

• G ?1:5;>@;@41'1>51?!%>121>>10'@;/71D/1<@-?01?/>5.10.18;C;99;:'@;/7-:0-:E;@41>/8-??;>?1>51?;2;A> /-5@-8?@;/7@41@19?;2C45/41D<>1??8E<>;B501@4-@@41'1>51?%>121>>10'@;/7>-:7??1:5;>@;?A/4/8-??;>?1>51? -?@;>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:
• G ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7'1>51?!%>121>>10'@;/7@;@411D@1:@;2@41'1>51?!'@-@10*-8A1-? 0125:105:H'1>51?!%>121>>10'@;/7I.18;C-:0C5@41-/4/8-??;>?1>51?;2;A>/-<5@-8?@;/75:/8A05:3/-<5@-8?@;/7 5??A105:@412A@A>1@41@1>9?;2C45/41D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7?;:<->5@EC5@4@41'1>51? %>121>>10'@;/7-?@;>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:
• G 6A:5;>@;1-/4/8-??;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/4 1D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7??1:5;>@;@41'1>51?%>121>>10'@;/7-?@;>534@?A<;:;A> 85=A50-@5;:C5:05:3A<;>05??;8A@5;:-:0
• G 6A:5;>@;-88;A>1D5?@5:3-:02A@A>101.@;.853-@5;:?

\$\$%-/4?4->1;2'1>51?%>121>>10'@;/74-?-?@-@10B-8A1;2- ?A.61/@@;-<<>;<>5-@1-06A?@91:@5: 8595@10/5>/A9?@-:/1?01?/>5.105:H06A?@91:@;2@41'1>51?'@-@10*-8A15:;::1/@5;:C5@4-&1019<@5;:I.18;C@41 H'1>51?'@-@10*-8A1I

&#'A.61/@@;@41<>121>1:@5-8>534@?;2@414;801>?;2-:E/8-??;>?1>51?;2;A>/-5@-8?@;/7-:75:3?1:5;>@; @41'1>51?%>121>>10'@;/752-:E?A/4/8-??;>?1>51?;2?@;/75?-A@4;>5F105:@412A@A>1@414;801>?;2'1>51?%>121>>10 '@;/7->11:@5@810@;>1/15B152-?-:0C41:-A@4;>5F10.E;A>;->0;25>1/@;>?-:001/8->10.EA?;A@;2813-88E-B-58-.81 2A:0?/A9A8-@5B1/-?405B501:0?;:1-/4?4->1;2'1>51?%>121>>10'@;/7-@-:-::A-8>-@1;225B1-:0?5D@E25B14A:0>10@4? ;2-<1>/1:@;2@41'1>51?'@-@10*-8A1@41H'1>51?5B501:0I

(41'1>51?5B501:0-//>A1?-:05?/A9A8-@5B12>;9@411:0;2@419;?@>1/1:@<1>5;02;>C45/4@41'1>51? 5B501:04-?.11:<-50;>52:;'1>51?5B501:04-?.11:<-502>;9@410-@1;25??A-:/1;2-35B1:?4->1;2'1>51? %>121>>10'@;/7(41'1>51?5B501:0-//>A1?-:05?-50;:@41.-?5?;2-0-EE1-/;:?5?@5:3;2@C18B1 0-E9;:@4? (41'1>51?5B501:0-//>A1?C41@41>;>:;@5C14-B11->:5:3?55@41>1->12A:0?813-88E-B-58-.812;>@41<-E91:@;2 ?A/405B501:0?-:0555?A/405B501:0?->1-A@4;>5F10.E;A>;->0;25>1/@;>?;>01/8->10.EA?//>A10'1>51?5B501:0? 0;:;@.1->5:@1>1?@

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

;801>?;2;A>?4->1?;2'1>51?%>121>>10'@;/7->1:;@1:@5@810@;-:E05B501:05:1D/1??;22A88/A9A8-@5B1'1>51? 5B501:0?;:?A/4?4->1?):81??2A88/A9A8-@5B1'1>51?5B501:0?2;>-88<-?@05B501:0<1>5;0?4-B1.11:;>->1 /;:@19<;>-:1;A?8E01/8->10-:0<-50;>01/8->10-:0-?A9?A225/51:@2;>@41-E91:@@411;25??1@-<->@2;><-E91:@C1C588 :;@

• G 01/8->1-:0<-E;>01/8->1-:0?1@-<->@2;>-E91:@05B501:0?-:0C1C588:;@01/8-1-:09-71-:E;@41>05?@>5.A@5;: ;2/-?4;>;@41><>;<1>@E;@41>@4-:05B501:0?;>;@41>05?@>5.A@5;:?<-505:?4->1?;2?@;/7>-:75:36A:5;>@;@41 '1>51?%>121>>10'@;/7-?@;@4105B501:0>534@?;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:-:0 ;<@5;:?C->>-:@?;>>534@?@;/4-?1?A/4?4->1?05>1/@8E;>5:05>1/@8E;:;>C5@4>1?1/@@;-:E?4-1?;2;99;: '@;/7'1>51?%>121>>10'@;/7'1>51?!%>121>>10'@;/7;>-:E;@41>/8-??;>?1>51?;2;A>?@;/7>-:75:36A:5;>@;;> ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7-?@;05B501:0>534@?;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;> 05??;8A@5;:2;>-:E<1>5;0;>
• G 1D/1<@.E/;:B1>?5;:5:@;;>1D/4-:312;>?4->1?;2?@;/7>-:75:36A:5;>@;@41'1>51?%>121>>10'@;/7-?@;05B501:0 >534@?;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:;>;<@5;:?C->>-:@?;>>534@?@;/4-?1?A/4?4->1? >10119/4-?1;>;@41>C5?1-/=A5>1;@41>@4-:->1019<@5;:/4-?1;>;@41>-/=A5?5@5;:;2;99;:'@;/79-01 2;><;?1?;2-:198;E115:/1:@5B1;.1:125@<8-:2;>-:E/;:?501>-@5;:;><-E;>9-71-B-58-.81-:E9;:51?2;>

-?5:75:32A:02;>@41>1019@5;:;2-:E;99;:'@;/7'151?%>121>>10'@;/7'1>51?!%>121>>10'@;/7;>-:E /8-??;>-:E;@41>/8-??;>?1>51?;2;A>?@;/7>-:75:36A:5;>@;;>;:<->5@EC5@4@41'1>51?%>121>>10'@;/7-?@; 05B501:0>534@? ;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:

(;@411D@1:@:1/1??->E@;<>1?1>B1;A>?@-@A?-?-&(@412;>13;5:3?1:@1:/14;C1B1>C588:;@<>;45.5@01/8->5:3 ;><-E5:3;>?1@@5:3-<->@2;>-E91:@-:E05B501:0;;@41>05?@>5.A@5;:;:@41;99;:'@;/7;>@41>1019<@5;:;2;A>/-<5@-8 ?@;/7?A-:@@;@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>/;:@-5:105:;A>/4->@1>?11H1>@-5:%>;B5?5;:?;2@41"!-:0 \$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C

\$\$\$ \$"135::5:3;:@410-@1;2;>535:-85??A-:/1;2-:E35B1:?4->1?;2'1>51? %>121>>10'@;/7@414;801>4-?@41>534@@;>1=A5>1@41;9-:E@;10119?A/4?4->1?-@->1019<@5;:<>5/11=A-8@;- <1>/1:@-31;2@41'1>51?'@-@10*-8A1?1@2;>@4.18;C<8A?-:E-//>A10-:0A:<-50'1>51?5B501:0?

• G 2;>-88?A/4>1019<@5;:?1221/@5B1<>5;>@;@41?1/;:0-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2?A/4?4->1? <>;B50104;C1B1>@4-@@41;->0;25>1/@;>?;>-:-A@4;>5F10;225/1>;2@41;9<-:E52;:15?01813-@10?A/4 <;C1>.E@41;->0;25>1/@;>?2>;9@591@;@5915:5@?05?/>1@5;:9-E-A@4;>5F1->10A/@5;:;2?A/4<1>/1:@-31@;
• G ?2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@41?1/;:0-::5B1>?->E.A@<>5;>@;@41@45>0-::5B1>?->E;2@41 0-@1;2;>535:-85??A-:/1;2?A/4?4->1?
• G 2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@41@45>0-::5B1>?->E.A@<>5;>@;@412;A>@4-::5B1>?->E;2@410-@1 ;2;>535:-85??A-:/1;2?A/4?4->1?
• G 2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@412;A>@4-::5B1>?->E.A@<>5;>@;@41252@4-::5B1>?->E;2@410-@1 ;2;>535:-85??A-:/1;2?A/4?4->1?-:0
• G 2;>-88?A/4>1019@5;:?1221/@5B1;:;-2@1>@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2?A/4 ?4->1?

#;@C5@4?@-:05:3@412;>13;5:3C5@4>1?1/@@;-:E1019@5;:?1221/@5B1;:;-2@1>@41?1/;:0-::5B1>?->E.A@<>5;> @;@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1@41;->0;25>1/@;>?;>-:-A@4;>5F10;225/1>;2@41;9<-:E52;:1 5?01813-@10?A/4<;C1>.E@41;->0;25>1/@;>?2>;9@591@;@5915:5@?05?/>1@5;:9-E-A@4;>5F1@41;9-:E@;5:/1-?1 @41>1019<@5;:<>5/12>;95@?1D5?@5:381B18@;-:-9;A:@.1@C11: -:0 5:/8A?5B1;2@41'1>51?'@-@10*-8A1<8A? -:E-//>A10-:0A:<-50'1>51?5B501:0?@4>;A34-:05:/8A05:3@410-@125D102;>?A/4>1019<@5;:

-/44;801>;2'1>51?%>121>>10'@;/79-E1D1>/5?1?A/4>1019<@5;:>534@.E0185B1>5:3-C>5@@1::;@5/1@41>1;2@; @41;9-:E-:0@411019<@5;:<>5/1C588.1<-50.E@41;9<-:E;:-0-@1?181/@10.E@41;9-:E@4-@5?:;8-@1@4-: 0-E?-2@1>?A/4:;@5/15?>1/15B10.E@41;9<-:E

\$? \$'\$"135::5:3;:@410-@1;2;>535:-85??A-:/1-:01:05:3;:.A@:;@ 5:/8A05:3@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2-:E?4->1?;2'1>51?%>121>>10'@;/7C1C588>10119?A/4 ?4->1?4180.E-:-@A>-8<1>?;:A<;:45?;>41>01-@4-@@41C>5@@1:>1=A1?@;2@414;801>J?1?@-@1-@->1019<@5;:<>5/11=A-8@; ;2@41'1>51?'@-@10*-8A1<8A?-:E-//>A10-:0A:<-50'1>51?5B501:0?@4>;A34-:05:/8A05:3@410-@125D102;> ?A/4>1019<@5;:

\$? \$)\$ )+1C5884-B1@41>534@@;>10119-:E;>-88?4->1?;2;A>'1>51?%>121>>10 '@;/72>;9-:0-2@1>@41252@4-::5B1>?->E;2@410-@1;2;>535:-85??A-:/1;2?A/4?4->1?+19-E>10119?A/4?4->1?-@- >1019<@5;:<>5/11=A-8@; ;2@41'1>51?'@-@10*-8A1<8A?-:E-//>A10-:0A:<-50'1>51?5B501:0?221C1>@4-:-88 @41;A@?@-:05:3?4->1?;2'1>51?%>121>>10'@;/7->1@;.1>1011910@41;9-:EC588?181/@@4;?1?4-1?@;.1>1011910<>; >-@-;>5:?A/49-::1>-?@41;->0;25>1/@;>?9-E01@1>95:1

+19-E1D1>/5?1;A>>1019<@5;:>534@.E0185B1>5:3-C>5@@1::;@5/1@41>1;2@;@414;801>?;2?4->1?;2'1>51? %>121>>10'@;/7@;.1>1011910-/4?A/4:;@5/1C588?@-@1@410-@1;:C45/4@41>1019<@5;:.EA??4-88;//A>C45/40-@1C588 .1:;21C1>@4-: :;>9;>1@4-:? 0-E?2;88;C5:3@41:;@5/10-@1

22A88/A9A8-@5B1'1>51?5B501:0?;:-88;A@?@-:05:3?4->1?;2'1>51?%>121>>10'@;/74-B1:;@.11:01/8->10-:0 <-50;>01/8->10-:0?1@-<->@2;>-E91:@2;-88<-?@05B501:0<1>5;0?:;?4->1?;2@41'1>51?%>121>>10'@;/79-E.1 >1011910-@@41;@5;:;2@41;9amp#45;amp#58;amp#69;amp#65;amp#58;amp#56;amp#49;amp#63;amp#63;amp#45;amp#56;amp#56;amp#59;amp#65;amp#64;amp#63;amp#64;amp#45;amp#58;amp#48;amp#53;amp#58;amp#51;amp#63;amp#52;amp#45;1?;2@41'151?%>121>>10'@;/7->1?59A8@-:1;A?8E

1011910-:01D/1<@-?<>;B5010.E@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>?1@2;>@45:;A>/4->@1>?11H1>@-5:%>;B5?5;:? ;2@41"!-:0\$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C:15@41>@41;9<-:E:;>-:E;2 5@?-22585-@1?9-E/4-?1;>;@41>C5?1-/=A5>1?4->1?;2'1>51?%>121>>10'@;/7;@41>C5?1@4-:?A-:@@;-/4-?1;> 1D/4-:31;221>9-01;:@41?-91@1>9?@;-884;801>?;2?4->1?;2'1>51?%>121>>10'@;/7

)\$\$? \$")<;:-:E>1019<@5;:;2'1>51?%>121>>10'@;/7.E-4;801>;>@41;9<-:E;> A;:@4101-@4;2-4;801C1C588-E@411019<@5;:<>5/1-@;A>;<@5;:-:05:;A>?;8105?/>1@5;:5:/-?4;>5:1=A-8B-8A1 @4>;A34@415??A-:/1;2?4->1?;2;99;:'@;/7.-?10;:@41B;8A91C1534@10-B1>-31<>5/1;2;A>;99;:'@;/72;>@41? @>-05:30-E?<>5;>@;@41>1019<@5;:-?01?/>5.105:@41->@5/81??Aamp#56;amp#49;amp#57;amp#49;amp#58;amp#64;amp#45;E@;;A/4->@1>0125:5:3@41@1>9?;2@41'1>51? %>121>>10'@;/7

2@41;9<-:E181/@?@;-E@411019<@5;:<>5/15:;99;:'@;/7@41;9<-:EC588/-A?1@41@>-:?21>-31:@@;-? ?;;:-?<>-/@5/-.81.A@:;@8-@1>@4-:@4>11.A?5:1??0-E?-2@1>@411221/@5B10-@1;2?A/4>1019<@5;:>135?@1>@41:A9.1>;2 ?4->1?;2;99;:'@;/7?A/44;801>5?1:@5@810@;>1/15B1-?->1?A8@;2?A/4>1019<@5;:(41<1>?;:;><1>?;:?1:@5@810@; >1/15B1@41?4->1?;2;99;:'@;/75??A-.81A<;:?A/4>1019<@5;:C588.1@>1-@102;>-88;?1?-?@411/;>04;801>;> 4;801>?;2?A/4?4->1?;2;99;:'@;/7-?;2@411221/@5B10-@1;2?A/4>1019<@5;:

\$A>;.853-@5;:@;>10119-:E?4->1?;2;A>'1>51?%>121>>10'@;/75?8595@10@;@411D@1:@@4-@5C10;:;@4-B1 ?A225/51:@2A:0?-B-58-.81@;2A:0-:E?A/4>1019<@5;:5:C45/4/-?1C1C588.1>1=A5>10@;>10119C5@4?4->1?;2;99;: '@;/7;>55C1->1>1?@>5/@10.E-<<85/-.818-C;A>/4->@1>;>/;:@>-/@A-8;.853-@5;:?2>;99-75:3?A/4>1019<@5;:

-%#\$\$\$
"#
\$\$%\$'\$? \$2/1>@-5:1B1:@?-221/@5:3@41;99;: '@;/7?A/4-?>1/-5@-85F-@5;:??@;/705B501:0??@;/7?amp#56;amp#53;amp#64;amp#63;amp#63;amp#64;amp#59;amp#47;amp#55;amp#47;amp#59;amp#57;amp#46;amp#53;amp#58;amp#45;amp#64;amp#53;amp#59;amp#58;amp#63;1/8-??525/-@5;:?9131>?;>?5958->1B1:@? ;//A>0A>5:3@41? @>-05:30-E?<>5;>@;->1019<@5;:;2'1>51?%>121>>10'@;/7C1C588-06A?@@41'1>51?'@-@10*-8A1?; @4-@?A/4>1019@5;:?4-881:@5@81@414;801@;>1/15B1@41-33>13-@1:A9.1>;2?4->1?;2;99;:'@;/7;>/-?4C45/452@41 >1019<@5;:4-0;//A>>10599105-@18E<>5;>@;?A/41B1:@?A/44;801>C;A804-B1;C:10A<;:?A/4>1019<@5;:-:0.11: 1:@5@810@;>1/15B10?A-:@@;@411B1:@-221/@5:3;A>;99;:'@;/7

"\$
"##;2>-/@5;:-8?4->1?;2;99;:'@;/7C588.15??A10A<;:>1019<@5;:;2-:E?4->1?;2'1>51? %>121>>10'@;/7&-@41>-:E2>-/@5;:-8:A9.1>;2?4->1?;2;99;:'@;/7@;.15??A10A<;:-:E>1019@5;:;2@41'151? %>121>>10'@;/7C588.1>;A:0100;C:@;@41:1->1?@C4;81:A9.1>;2?4->1?;2;99;:'@;/7

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

2A;:@41B;8A:@-E;>5:B;8A:@->E85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2@41;9<-:E@41-B-58-.81-??1@?;2@41 ;9<-:E;><>;/110?@41>1;205?@>5.A@-.81-9;:3@414;801>?;2@41'1>51?%>121>>10'@;/7->15:?A225/51:@@;<-E5:2A88@41 -.;B101?/>5.1085=A50-@5;:<>121>1:/1-:0@4185=A50-@5:3-E91:@?;:-:E?4-1?;2-:E/8-??;>?1>51?;2?@;/7>-:75:3;: <->5@E@;@41'1>51?%>121>>10'@;/7C5@4>1?1/@@;85=A50-@5;:05??;8A@5;:;C5:05:3A51?%->5@E'@;/7I@41:?A/4 -??1@?;>@41<>;/110?@41>1;2C588.105?@>5.A@10-9;:3@414;801>?;2@41'1>51?%>121>>10'@;/7-:0-:E?A/4'1>51? %->5@E'@;/7>-@-.8E5:@41?-91<>;<;>@5;:-?@41>1?<1/@5B1-9;A:@?@4-@C;A80.1<-E-.81;:?A/4'1>51?%>121>>10'@;/7 -:0-:E?A/4'1>51?%->5@E'@;/752-88-9;A:@?-E-.81@411;:C1>1<-505:2A88

2@1><-E91:@;2@412A88-9;A:@;2@4185=A50-@5:305?@>5.A@5;:?@;C45/4@41E->11:@5@810@414;801>?;2?4->1?;2 '1>51?%>121>>10'@;/7C5884-B1:;>534@;>/8-59@;-:E;2;A>>19-5:5:3-??1@?\$A>/;:?;850-@5;:91>31>;>/;:B1>?5;: C5@4;>5:@;-:E;@41>/;><;>-@5;:@>A?@;>;@41>1:@5@E@41/;:?;850-@5;:;>91>31>;2-:E;@41>/;><;>-@5;:@>A?@;>1:@5@EC5@4 ;>5:@;A?@41?-81;>@>-:?21>;2-:E;>-88;A>-??1@?;>.A?5:1??;>-?@-@A@;>E?4->11D/4-:31C588:;@.1011910@;/;:?@5@A@1 -85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2@41;9<-:E

:01@1>95:5:3C41@41>-05?@>5.A@5;:;@41>@4-:A;:B;8A:@-E;>5:B;8A:@->E85=A50-@5;:.E05B501:0>1019<@5;: ;>;@41>-/=A5?5@5;:;2?4->1?;2;A>?@;/7;>;@41>C5?15?<1>95@@10A:01>@41"!-9;A:@?@4-@C;A80.1:1101052C1 C1>1@;.105??;8B10-@@41@591;205?@>5.A@5;:@;?-@5?2E@41<>121>1:@5-8>534@?A;:05??;8A@5;:;24;801?;2@41'1>51? %>121>>10'@;/7C588:;@.1-0010@;;A>@;@-885-.585@51?

\$?\$#(41'1>51?%>121>>10'@;/74-?:;B;@5:3>534@?-:0@4A?4-?:;>534@?@;B;@1;:-:E05??;8A@5;: /4->@1>-91:091:@91>31>?-81;2-88;>?A.?@-:@5-88E-88;2;A>-??1@??4->11D/4-:31;>/;:B1>?5;:;>-:E-91:091:@@;@41 @1>9?;2@41'1>51?%>121>>10'@;/7

(#\$+14-B1:;@9-01-:00;:;@<8-:;:9-75:3-:-<85/-@5;:@;85?@?4-1?;2'1>51?%>121>>10 '@;/7;:#-?0-=-:E;@41>:-@5;:-8?1/A>5@51?1D/4-:31;>:-@5;:-88E>1/;3:5F10@>-05:3?E?@19;>@41('

"#"-\$?#\$""(41@>-:?21>-31:@-:0>135?@>->2;>@41'1>51?%>121>>10'@;/75?91>5/-:'@;/7 (>-:?21>-:0(>A?@;9<-:E

!

(41'1>51?!%>121>>10'@;/7>-:7?C5@4>1?1/@@;05B501:0534@?

• G ?1:5;>@;;A>;99;:'@;/71D/1@C5@41?<1/@@;-:0;:8E@;@411D@1:@;2@41:5@5-85B501:0-?0125:105:H 5B501:0?I.18;C-:0-:E;@41>/8-??;>?1>51?;2;A>/-5@-8?@;/7@41@19?;2C45/41D<>1??8E<>;B501@4-@;A> '1>51?!%>121>>10'@;/7>-:7??1:5;>@;?A/4/8-??;>?1>51?-?@;05B501:0>534@?
• G ;:<->5@EC5@4-:E/8-??;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/4 1D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7?;:<->5@EC5@4@41'1>51?!%>121>>10'@;/7-?@;05B501:0>534@?
• G 6A:5;>@;;A>'1>51?%>121>>10'@;/7'1>51?%>121>>10'@;/7;99;:'@;/7C5@4>1?<1/@@;-:0;:8E@;@411D@1:@ ;2@41:5@5-85B501:0-:0-:E;@41>/8-??;>?1>51?;2;A>/-<5@-8?@;/75:/8A05:3/-5@-8?@;/75??A105:@412A@A1 @41@1>9?;2C45/41D<>1??8E<>;B501@4-@?A/4/8-??;>?1>51?>-:7??1:5;>@;@41'1>51?!%>121>>10'@;/7-?@; 05B501:0>534@?-:0
• G 6A:5;>@;-88;A>1D5?@5:3-:02A@A>101.@;.853-@5;:?

(41'1>51?!%>121>>10'@;/7>-:7?C5@4>1?1/@@;534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:

• G ?1:5;>@;;A>;99;:'@;/7.;@45@;@411D@1:@;2@41'1>51?!'@-@10*-8A1-?0125:105:H'@-@10*-8A1I.18;C -:0552;88;C5:3-E91:@@;4;801?;2;A>;99;:'@;/7;2-:-9;A:@1=A-8@;-:EA:<-50:5@5-85B501:0@;@41 1D@1:@;2-:E-//>A10-:0A:<-50'1>51?!5B501:0?-?0125:105:H5B501:0?I.18;C-:0-:E;@41>/8-??;>?1>51? ;2;A>/-5@-8?@;/7@41@19?;2C45/41D<>1??8E<>;B501@4-@@41'1>51?!%>121>>10'@;/7>-:7??1:5;>@;?A/4/8-?? ;>?1>51?-?@;>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:
• G ;:<->5@EC5@4@41'1>51?%>121>>10'@;/7-:0'1>51?%>121>>10'@;/7@;@411D@1:@;2@41'1>51?!'@-@10*-8A1-:0 C5@41-/4/8-??;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/41D<>1??8E <>;B501@4-@?A/4/8-??;>?1>51?>-:7?;:<->5@EC5@4@41'1>51?!%>121>>10'@;/7-?@;>534@?A<;:;A>85=A50-@5;: C5:05:3A<;>05??;8A@5;:
• G 6A:5;>@;;A>'1>51?%>121>>10'@;/7'1>51?%>121>>10'@;/7-:0;99;:'@;/7C5@4>1?<1/@@;-:0;:8E@;@41 1D@1:@;2@41:5@5-85B501:05:1-/4/-?1C5@4>1?1/@@;-:E-//A10-:0A:<-50'1>51?!5B501:0?-:0-:E/8-?? ;>?1>51?;2;A>/-5@-8?@;/75:/8A05:3/-amp#53;amp#64;amp#45;amp#56;amp#63;amp#64;amp#59;amp#47;amp#55;amp#53;amp#63;amp#63;amp#65;amp#49;amp#48;amp#53;amp#58;amp#64;amp#52;amp#49;amp#50;amp#65;amp#64;amp#65;1@41@19?;2C45/41D<>1??8E<>;B501@4-@ ?A/4/8-??;>?1>51?>-:7??1:5;>@;@41'1>51?!%>121>>10'@;/7-?@;>534@?A<;:;A>85=A50-@5;:C5:05:3A<;> 05??;8A@5;:-:0
• G 6A:5;>@;-88;A>1D5?@5:3-:02A@A>101.@;.853-@5;:?

\$\$%-/4?4->1;2'1>51?!%>121>>10'@;/74-?-?@-@10B-8A1;2-
?A.61/@@;-<<>;<>5-@1-06A?@91:@5: 8595@10/5>/A9?@-:/1?01?/>5.105:H06A?@91:@;2@41'1>51?!'@-@10*-8A15:;::1/@5;:C5@4-&1019<@5;:I.18;C@41 H'1>51?!'@-@10*-8A1I

&#'A.61/@@;@41<>121>1:@5-8>534@?;2@414;801>?;2-:E/8-??;>?1>51?;2;A>/-5@-8?@;/7-:75:3?1:5;>@; @41'1>51?!%>121>>10'@;/75:/8A05:3@41'1>51?%>121>>10'@;/7'1>51?%>121>>10'@;/7-:0@;@411D@1:@;2@41:5@5-8 5B501:0;A>;99;:'@;/7@414;801>?;2;A>'1>51?!%>121>>10'@;/7->11:@5@810@;>1/15B152-?-:0C41:-A@4;>5F10.E ;A>;->0;25>1/@;>?-:001/8->10.EA?;A@;2813-88E-B-58-.812A:0?/A9A8-@5B1/-?405B501:0?;:1-/4?4->1;2'1>51?! %>121>>10'@;/7-@-:-::A-8>-@1;225B1-:0252@E4A:0>10@4?;2-<1>/1:@ ;2@41'1>51?!'@-@10*-8A1<-505:?>-185 #1C'41718?H!'I-?01?/>5.10.18;C<>;B50104;C1B1>52@41;9-:E2-58?@;@5918E01/8-1;>2-58?@;@5918E<-E

05B501:0?;:;A>'1>51?!%>121>>10'@;/7@41-::A-805B501:0>-@1;2;A>'1>51?!%>121>>10'@;/7C588@19<;>->58E5:/>1-?1.E <1>E1->A<@;-9-D59A9>-@1;2;2@41'1>51?!'@-@10*-8A1A:@58@41;9<-:E4-?<-50-88-//>A1005?@>5.A@5;:? ;:;A>'1>51?!%>121>>10'@;/72;>-:E<-?@05B501:0<1>5;0?@41H'1>51?!5B501:0I

'1>51?!5B501:0?-//>A1-:0->1/A9A8-@5B12>;9@411:0;2@419;?@>1/1:@<1>5;02;>C45/4?A/405B501:0?4-B1 .11:<-50;>-'1>51?!5B501:0@;.1@5918EC19A?@01/8->1@41-9;A:@;205B501:0?@;.1<-50;:'1>51?!%>121>>10 '@;/75:)'0;88->?0A>5:3@412;A>@4=A->@1>;2@41/-81:0->E1->-:0:;8-@1>@4-:1/19.1>(41-E91:@0-@12;?A/4 -::A-805B501:05?-@@4105?/>1@5;:;2@41;9<-:E;:;>.1@C11:1/19.1>;2@41E1->2;>C45/4?A/405B501:05?01/8->10 -:0-:A->E
;2@41E1->2;88;C5:3@41E1->2;>C45/4?A/405B501:05?01/8->10'1>51?!5B501:0?->1-50@;4;801?5:!' -@@41C1534@10-B1>-31;2@41)'0;88-> !'1D/4-:31>-@1?;2-88@>-:?-/@5;:?/;981@10.E@41.-:7?@4;A34C45/4@41 ;9<-:E/;:B1>@?@41-E91:@;:@41@450@>-05:30-E;2@41('<>1/105:3@41<-E91:@0-@1

%>5;>@;01/8->5:3;><-E5:3-:E'1>51?!5B501:0C19A?@25>?@01/8->1-:0-E@41H:5@5-85B501:0IC45/42;- 35B1:25?/-8E1->5?-95:59A9-::A-805B501:0;:;A>;99;:'@;/7@4-@5?-::;A:/10.EA?-@@411:0;2@41<>5;>25?/-8 E1->(41:5@5-85B501:0C588.1- 2;>-:EE1->5:C45/45;A>;->0;25>1/@;>?0;1?:;@-A@4;>5F1;>C10;:;@-::;A:/1 @41:5@5-85B501:055-:E'1>51?!5B501:05?5:->>1->?-:0?A/4-9;A:@C-?:;@01/8->10-?;2@418-?@0-E;2@41 <>1/105:3E1->;>555@4101.@;2@41;9<-:E05B501:0.E@41@;@-8-??1@?;2@41;9-:E/-8/A8-@10-??1@2;@45:@41 ->@5/81??Aamp#56;amp#49;amp#57;amp#49;amp#58;amp#64;amp#45;E@;;A/4->@1>0125:5:3@41@1>9?;2@41'1>51?!%>121>>10'@;/71D/11010 -?;2#;B19.1> ;2 @41<>5;>E1->+4581@41>1->1:;8595@-@5;:?;:@419-D59A9-9;A:@;2@41:5@5-85B501:0@4-@/-:.1<-505:-<->@5/A8-> E1->5@5?;A>5:@1:@5;:@4-@C1C588:;@-::;A:/1-::5@5-85B501:02;>-:E35B1:E1->@4-@.-?10;:@415:2;>9-@5;: >1-?;:-.8E-B-58-.81@;A?-@@41@591;2-::;A:/191:@C1.1851B1C588/-A?1A?@;.1A:-.81@;9-71-2A@A>105B501:0;:;A> '1>51?!%>121>>10'@;/7;>;:-:E;@41>;A@?@-:05:3?4->1;2<>121>>10?@;/7

):81??2A88/A9A8-@5B105B501:0?;:@41'1>51?!%>121>>10'@;/72;>-88<-?@-::A-8<1>5;0?4-B1.11:;> /;:@19<;>-:1;A?8E->101/8->10-:0<-50;>01/8->10-:0-?A9?A225/51:@2;>@41-E91:@@411;25??1@-<->@2;><-E91:@C1 C588:;@

•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
• G 1D/1<@.E/;:B1>?5;:5:@;;>1D/4-:312;>?4->1?;2?@;/7>-:75:36A:5;>@;;A>'1>51?!%>121>>10'@;/7-?@; 05?@>5.A@5;:>534@?;>>534@?A<;:;A>85=A50-@5;:C5:05:3A<;>05??;8A@5;:;>;<@5;:?C->>-:@?;>>534@?@;/4-?1 ?A/4?4->1?>10119/4-?1;>;@41>C5?1-/=A5>1;@41>@4-:->1019<@5;:/4-?1;>;@41>-/=A5?5@5;:;2;99;: '@;/79-012;><;?1?;2-:198;E115:/1:@5B1;.1:125@<8-:2;>-:E/;:?501>-@5;:;><-E;>9-71-B-58-.81-:E 9;:51?2;>-?5:75:32A:02;>@41>1019@5;:;2-:E;99;:'@;/7;-:E/8-??;>?1>51?;2;A>?@;/7>-:75:36A:5;> @;;>;:<->5@EC5@4;A>'1>51?!%>121>>10'@;/7-?@;05?@>5.A@5;:>534@?

;C1B1>@;@411D@1:@:1/1??->E@;<>1?1>B1;A>?@-@A?-?-&(@412;>13;5:3?1:@1:/1C588:;@<>;45.5@01/8->5:3;> <-E5:3;>?1@@5:3-<->@2;>-E91:@-:E05B501:0;;@41>05?@>5.A@5;:;:;A>;99;:'@;/7;>@41>1019<@5;:;2;A>/-<5@-8 ?@;/7?A-:@@;@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>/;:@-5:105:;A>/4->@1>?11H1>@-5:%>;B5?5;:?;2@41"!-:0 \$A>4->@1>-:0E8-C?&1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C

%("&"?\$%>5;>@;#;B19.1>?? ??C1->1:;@<1>95@@10@;5??A1-:E<>121>>10 ?@;/7>-:75:3?1:5;>@;;>;:<->5@EC5@4@41'1>51?!%>121>>10'@;/7C5@4>1?<1/@@;@41-E91:@;205B501:0?;@41 05?@>5.A@5;:?85=A50-@5;:;>;A>05??;8A@5;:;>C5:05:3AA:81??@41"5:59A95D104-31;B1>-31&-@5;-?0125:105:;A> /4->@1>5?1=A-8@;;>3>1-@1>@4-:? -?;2@418-?@0-E;2@41@>-585:3?9;:@4<1>5;01:05:3;:@418-?@0-E;2@41 =A->@1><>1/105:3@410-@1;2?A/45??A-:/1

\$\$\$ \$">;9-:0-2@1>#;B19.1>?? ??1-/44;801>;2?4->1?;2'1>51?!%>121>>10 '@;/79-E>1=A5>1A?@;>10119?A/4?4->1?-@->1019<@5;:<>5/11=A-8@; ;2@41'1>51?!'@-@10*-8A1<8A?<>;B5010@41 '1>51?!;:05@5;:?-?0125:105:H%-E91:@;2@41&1019<@5;:%>5/1I.18;C->191@-88-//>A10-:0A:<-50'1>51?! 5B501:0?#;@C5@4?@-:05:3@412;>13;5:3-4;801>;2?4->1?;2;A>'1>51?!%>121>>10'@;/79-E>1=A5>1A?@;>10119?A/4 ?4->1?-@-:E@591<>5;>@;#;B19.1>?? ??525C10;:;@01/8->1-:0-E5:2A88@41'151?!5B501:02;>-:E-::A-8 <1>5;0<>5;>@;?A/40-@1-:055C10;:;@01/8->1-:0<-E-88-//>A10-:0A:<-50'1>51?!5B501:0?2;>-88<-?@05B501:0 <1>5;0?<>5;>@;@41-<<85/-.814;801>>1019<@5;:0-@1

\$? \$)\$ )>;9-:0-2@1>#;B19.1>?? ???A.61/@@;/1>@-5:/;:05@5;:?C19-E >10119?4->1?;2'1>51?!%>121>>10'@;/7-@->1019<@5;:<>5/11=A-8@; ;2@41'1>51?!'@-@10*-8A1<8A?-:E-//>A10 -:0A:<-50'1>51?!5B501:0?

#;?4->1?;2'1>51?!%>121>>10'@;/79-E.1>1011910-@@41;<@5;:;2@41;9-:E5252A88/A9A8-@5B1'151?! 5B501:0?;:-88;A@?@-:05:3?4->1?;2'1>51?!%>121>>10'@;/74-B1:;@.11:01/8->10-:0<-50;>01/8->10-:0?1@-<->@2;> -E91:@2;-88<-?@05B501:0<1>5;0?55@41;9-:E4-?:;@01/8-10@411:@5>1:5@5-85B501:0C5@4>1?<1/@@;@41;99;: '@;/72;>?A/425?/-8E1->5552A88/A9A8-@5B1'1>51?5B501:0?;:-88;A@?@-:05:3?4->1?;2'1>51?%>121>>10'@;/74-B1 :;@.11:01/8->10-:0<-50;>01/8->10-:0?1@-<->@2;>-E91:@2;-88<-?@05B501:0<1>5;0?;>5B@41;9<-:E4-?:;@<-50 5:?A/425?/-8E1->05B501:0?;:@41;99;:'@;/71=A-8@;@41<>;0A/@;2@41:5@5-85B501:09A8@5<8510.E-2>-/@5;: @41:A91>-@;>;2C45/45?@41:A9.1>;2=A->@1>?@4-@4-B1-??10?5:/1@41.135::5:3;2@4125?/-8E1-5:/8A05:3@41/A>>1:@ =A->@1>-:0@4101:;95:-@;>;2C45/45?2;A>@41/;:05@5;:?5:55555-:05B/;881/@5B18E@41H'1>51?!;:05@5;:?I

22A88/A9A8-@5B1'1>51?!5B501:0?;:-88;A@?@-:05:3?4->1?;2'1>51?!%>121>>10'@;/74-B1:;@.11:01/8->10-:0 <-50;>01/8->10-:0?1@-<->@2;>-E91:@2;-88<-?@05B501:0<1>5;0?:15@41>@41;9<-:E:;>-:E;25@?-22585-@1?9-E /4-?1;>;@41>C5?1-/=A5>1?4->1?;2'1>51?!%>121>>10'@;/7;@41>C5?1@4-:?A-:@@;-/4-?1;>1D/4-:31;221>9-01 ;:@41?-91@1>9?@;-884;801>?;2?4->1?;2'1>51?!%>121>>10'@;/7

)\$\$? \$")<;:-:E>1019<@5;:;2'1>51?!%>121>>10'@;/7.E-4;801>;>@41;9<-:E;> A;:@4101-@4;2-4;801C1C588-E@411019<@5;:<>5/155:/-?45:!'555:?4->1?;2;A>;99;:'@;/7.-?10;:@41 8;C1>;25@41:1@-??1@B-8A1;2@41;9<-:E<1>?4->1;2;99;:'@;/7-?9;?@>1/1:@8E<A.85?410.E@41;9<-:E-?;2 @41>1019@5;:0-@1-:055@41B;8A91C1534@10-B1-31<>5/1;2;A>;99;:'@;/72;>@41? @>-05:30-E?<>5;>@;@41 >1019<@5;:-?01?/>5.105:@41->@5/81??Aamp#56;amp#49;amp#57;amp#49;amp#58;amp#64;amp#45;E@;;A/4->@1>0125:5:3@41@1>9?;2@41'1>51?!%>121>>10'@;/7;>5555: -:E/;9.5:-@5;:;2/-?45:!'-:0;99;:'@;/7.-?10;:@412;>13;5:3/;:B1>?5;:91/4-:5?9?

2@41;9<-:E181/@?@;<-E-88;>-<;>@5;:;2@41>1019<@5;:<>5/15:;99;:'@;/7@41;9<-:EC588/-A?1@41 @>-:?21>-31:@@;-??;;:-?<>-/@5/-.81>135?@1>@41:A9.1>;2?4->1?;2;99;:'@;/7?A/44;801>5?1:@5@810@;>1/15B1-?- >1?A8@;2?A/4>1019<@5;:(41<1>?;:;><1>?;:?1:@5@810@;>1/15B1@41?4->1?;2;99;:'@;/75??A-.81A<;:?A/4 >1019<@5;:C588.1@>1-@102;>-88;?1?-?@411/;>04;801>;>4;801>?;2?A/4?4->1?;2;99;:'@;/7-?;2@411221/@5B1 0-@1;2?A/4>1019<@5;:

\$A>;.853-@5;:@;>10119-:E?4->1?;2;A>'1>51?!%>121>>10'@;/75?8595@10@;@411D@1:@@4-@5C10;:;@4-B1 ?A225/51:@2A:0?-B-58-.81@;2A:0-:E?A/4>1019<@5;:5:C45/4/-?1C1C588.1>1=A5>10@;>10119C5@4?4->1?;2;99;: '@;/7;>55C1->1>1?@>5/@10.E-<<85/-.818-C;A>/4->@1>;>/;:@>-/@A-8;.853-@5;:?2>;99-75:3?A/4>1019<@5;:

-%#\$\$\$
"#
\$\$%\$'\$? \$2/1>@-5:1B1:@?-221/@5:3@41;99;: '@;/7?A/4-?>1/-5@-85F-@5;:??@;/705B501:0??@;/7?amp#56;amp#53;amp#64;amp#63;amp#63;amp#64;amp#59;amp#47;amp#55;amp#47;amp#59;amp#57;amp#46;amp#53;amp#58;amp#45;amp#64;amp#53;amp#59;amp#58;amp#63;1/8-??525/-@5;:?9131>?;>?5958->1B1:@? ;//A>0A>5:3@41? @>-05:30-E?<>5;>@;->1019<@5;:;2'1>51?!%>121>>10'@;/7C1C588-06A?@@41'1>51?!'@-@10*-8A1?; @4-@?A/4>1019@5;:?4-881:@5@81@414;801@;>1/15B1@41-33>13-@1:A9.1>;2?4->1?;2;99;:'@;/7;>/-?4C45/452@41 >1019<@5;:4-0;//A>>10599105-@18E<>5;>@;?A/41B1:@?A/44;801>C;A804-B1;C:10A<;:?A/4>1019<@5;:-:0.11: 1:@5@810@;>1/15B10?A-:@@;@411B1:@-221/@5:3;A>;99;:'@;/7

"\$
"##;2>-/@5;:-8?4->1?;2;99;:'@;/7C588.15??A10A<;:>1019<@5;:;2-:E?4->1?;2'1>51?! %>121>>10'@;/7&-@41>C1C588>;A:00;C:@;@41:1->1?@C4;81:A9.1>@41-33>13-@1:A9.1>;2?4->1?;2;99;:'@;/7@; .15??A10@;-<->@5/A8->4;801>A<;:>1019<@5;:5:-35B1:=A->@1>-:0C588<-E/-?45:1=A-8B-8A15:!'-?01@1>95:105: -//;>0-:/1C5@4@41->@5/81??Aamp#56;amp#49;amp#57;amp#49;amp#58;amp#64;amp#45;E@;;A/4->@1>0125:5:3@41@1>9?;2@41'1>51?!%>121>>10'@;/75:851A;2@41 2>-/@5;:-8?4->1?

!%\$"");:-:EB;8A:@-E;>5:B;8A:@->E85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2;A>-22-5>?-2@1> -E91:@;<>;B5?5;:2;>;A>01.@?-:0;@41>85-.585@51?;A>2A:0?813-88E-B-58-.812;>05?@>5.A@5;:@;;A>?@;/74;801>?C588.1 05?@>5.A@10-?2;88;C?

G 25>?@<>;>-@-@;54;801>?;2;A>'1>51?!%>121>>10'@;/75:-:-9;A:@<1>?4->11=A-8@;@41'1>51?!'@-@10*-8A1 554;801>?;2;A>'1>51?%>121>>10'@;/75:-:-9;A:@<1>?4->11=A-8@;@41'1>51?'@-@10*-8A1<8A?-:-9;A:@ 1=A-8@;-88-//>A10-:0A:<-50'1>51?5B501:0?C41@41>;>:;@01/8->105554;801>?;2;A>'1>51?%>121>>10 '@;/75:-:-9;A:@<1>?4->11=A-8@;@41'1>51?'@-@10*-8A18A?-:-9;A:@1=A-8@;-88-//A10-:0A:<-50'1>51? 5B501:0?C41@41>;>:;@01/8->10-:05B4;801>?;2-:E;@41>/8-??;>?1>51?;2/-5@-8?@;/7-:75:3;:<->5@E C5@4;A>'1>51?!%>121>>10'@;/7'1>51?%>121>>10'@;/7-:0'1>51?%>121>>10'@;/7C5@4>1?1/@@;534@?A<;:

;A>>1019<@5;:85=A50-@5;:C5:05:3A<;>05??;8A@5;:@;@411D@1:@<>;B5010.E@41@1>9?;2?A/4/8-??;>?1>51?;2 /-<5@-8?@;/7

• G ?1/;:0@;4;801>?;2;A>;99;:'@;/75:-:-9;A:@1=A-8@;@41-9;A:@;2-:EA:<-50:5@5-85B501:0
• G @45>0@;4;801>?;2;A>'1>51?!%>121>>10'@;/75:-:-9;A:@1=A-8@;-:E-//>A10-:0A:<-50'1>51?!5B501:0-:0
• G 2;A>@4@;4;801>?;2;A>;99;:'@;/7-:0-:E;@41>/8-??;>?1>51?;2/-5@-8?@;/7-:75:36A:5;>@;;A>'1>51?! %>121>>10'@;/7

:E85=A50-@5;:<>121>1:/1;:;A>'1>51?!%>121>>10'@;/7C588.1<-50.E@41;9<-:E5:!'.-?10;:@41C1534@10 -B1>-31;2@41)'0;88-> !'1D/4-:31>-@1?;2-88@>-:?-/@5;:?/;981@10.E@41.-:7?@4;A34C45/4@41;9<-:E/;:B1>@? @41-E91:@2;9)'0;88->?;:@41@>-05:30-E;2@41('<>1/105:3@41<-E91:@0-@1

2A;:@41B;8A:@-E;>5:B;8A:@->E85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2@41;9<-:E@41-B-58-.81-??1@?;2@41 ;9<-:E;><>;/110?@41>1;205?@>5.A@-.81-9;:3@414;801>?;2@41'1>51?!%>121>>10'@;/7->15:?A225/51:@@;<-E5:2A88@41 -.;B101?/>5.1085=A50-@5;:<>121>1:/1-:0@4185=A50-@5:3-E91:@?;:-:E?4-1?;2-:E/8-??;>?1>51?;2?@;/7>-:75:3;: <->5@E@;@41'1>51?!%>121>>10'@;/7C5@4>1?1/@@;@4185=A50-@5;:05??;8A@5;:;C5:05:3A<;2@41;9<-:EH'1>51?! %->5@E'@;/7I@41:?A/4-??1@?;>@41<>;/110?@41>1;2C588.105?@>5.A@10-9;:3@414;801>?;2@41'1>51?!%>121>>10'@;/7 -:0-:E?A/4'1>51?!%->5@E'@;/7>-@-.8E5:@41?-91<>;<;>@5;:-?@41>1?<1/@5B1-9;A:@?@4-@C;A80.1<-E-.81;:?A/4 '1>51?!%>121>>10'@;/7-:0-:E?A/4'1>51?!%->5@E'@;/752-88-9;A:@?-E-.81@411;:C1>1<-505:2A88

2@1><-E91:@;2@412A88-9;A:@;2@4185=A50-@5:305?@>5.A@5;:?@;C45/4@41E->11:@5@810@414;801>?;2?4->1?;2 '1>51?!%>121>>10'@;/7C5884-B1:;>534@;>/8-59@;-:E;2;A>>19-5:5:3-??1@?\$A>/;:?;850-@5;:91>31>;>/;:B1>?5;: C5@4;>5:@;-:E;@41>/;><;>-@5;:@>A?@;>;@41>1:@5@E@41/;:?;850-@5;:;>91>31>;2-:E;@41>/;><;>-@5;:@>A?@;>1:@5@EC5@4 ;>5:@;A?@41?-81;>@>-:?21>;2-:E;>-88;A>-??1@?;>.A?5:1??;>-?@-@A@;>E?4->11D/4-:31C588:;@.1011910@;/;:?@5@A@1 -85=A50-@5;:05??;8A@5;:;>C5:05:3A<;2@41;9<-:E

:01@1>95:5:3C41@41>-05?@>5.A@5;:;@41>@4-:A;:B;8A:@-E;>5:B;8A:@->E85=A50-@5;:.E05B501:0>1019<@5;: ;>;@41>-/=A5?5@5;:;2?4->1?;2;A>?@;/7;>;@41>C5?15?<1>95@@10A:01>@41"!-9;A:@?@4-@C;A80.1:1101052C1 C1>1@;.105??;8B10-@@41@591;205?@>5.A@5;:@;?-@5?2E@41<>121>1:@5-8>534@?A;:05??;8A@5;:;24;801?;2@41'1>51?! %>121>>10'@;/7C588:;@.1-0010@;;A>@;@-885-.585@51?

\$?\$#(41'1>51?!%>121>>10'@;/74-?:;B;@5:3>534@?-:0@4A?4-?:;>534@?@;B;@1;:-:E05??;8A@5;: /4->@1>-91:091:@91>31>?-81;2-88;>?A.?@-:@5-88E-88;2;A>-??1@??4->11D/4-:31;>/;:B1>?5;:;>-:E-91:091:@@;@41 @1>9?;2@41'1>51?!%>121>>10'@;/7

(#\$\$A>'1>51?!%>121>>10'@;/75?85?@10;:#-?0-=-:0;:@41('5:1-/4/-?1A:01>@41@5/71> ?E9.;8H"(%I

"#"-\$?#\$""(41@>-:?21>-31:@-:0>135?@>->2;>@41'1>51?!%>121>>10'@;/75?;9A@1?4->1(>A?@ ;9<-:E#

!

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

+->>-:@C588.1>10A/10@;<-E2;>@411D1>/5?1<>5/1-?<>;B50105:@41+->>-:@3>1191:@A:81???A/44;801>0;1?:;@-@@41 @591;21D1>/5?1;C:-?A225/51:@:A9.1>;2'1>51?+->>-:@?@;911@?A/495:59A9-9;A:@(41'1>51?+->>-:@?9-E.1 1D1>/5?10.E0185B1>5:3@;@41C->>-:@-31:@<>5;>@;@415>-<<85/-.81+->>-:@D<5>-@5;:(591-0A8E1D1/A@101D1>/5?1:;@5/1 -//;9-:510.Eamp#45;amp#69;amp#57;amp#49;amp#58;amp#64;amp#53;amp#58;amp#50;amp#65;amp#56;amp#56;amp#50;amp#59;@41:A9.1;2?4->1?;2;A>;99;:'@;/7/4-?10A<;:?A/41D1>/5?11D/1<@5:@41 /-?1;2-/-?481??1D1>/5?15:@41/5>/A9?@-:/1?05?/A??10.18;C

4;801>;2'1>51?+->>-:@?0;1?:;@4-B1@41>534@@;1D1>/5?1-:E<;>@5;:;2-'1>51?+->>-:@@;@411D@1:@@4-@ -2@1>35B5:31221/@@;@415??A-:/1;2?4->1?;2;A>;99;:'@;/7A<;:?A/41D1>/5?1@414;801>@;31@41>C5@45@?-22585-@1?-:0 -:E;@41><1>?;:?-/@5:3-?-3>;A@;31@41C5@4?A/44;801>;>-:E;25@?-22585-@1?C;A80.1:125/5-88E;>/;:?@>A/@5B18E;C: ?4->1?;2;99;:'@;/755:1D/1??;2?5:B-8A1;>:A9.1>;2?4->1?C45/41B1>5?9;>1>1?@>5/@5B1;2@41?4->1?;2 ;99;:'@;/7;A@?@-:05:3;>55@4-@C;A80;@41>C5?1>1?A8@5:@41B5;8-@5;:;2-:E;2@41>1?@>5/@5;:?;:;C:1>?45<@>-:?21>;2 ;A>?@;/7/;:@-5:105:;A>/4->@1>5:1-/4/-?1599105-@18E-2@1>35B5:31221/@@;@415??A-:/1;2?4->1?;2;99;:'@;/7 A<;:1D1>/5?1;2@41'1>51?+->>-:@-?05?/A??105:H1>@-5:%>;B5?5;:?;2@41"!-:0\$A>4->@1>-:0E8-C? &1?@>5/@5;:?;:\$C:1>?45<-:0(>-:?21>I.18;C

###("#2;:@410-@1;2-:E1D1>/5?1;2-:E'1>51?+->>-:@->135?@>-@5;:?@-@191:@/;B1>5:3@41 5??A-:/1;2@41?4->1?;2;99;:'@;/75??A-.81A<;:1D1>/5?1;2@41'1>51?+->>-:@5?:;@1221/@5B1-:0-:1D19<@5;:2>;9 >135?@>-@5;:5?:;@-B-58-.812;>@41>1?-81;2?A/4?4->1?5??A-.81A<;:1D1>/5?1;2@41'1>51?+->>-:@@414;801>9-E;:8E ?-@5?2E5@?;.853-@5;:@;-E@411D1/5?1<>5/1A;:@411D1/5?1;25@?'1>51?+->>-:@;:-/-?481??.-?5?5:-//;>0-:/1C5@4 @41@1>9?;2@41+->>-:@3>1191:@+41:1D1>/5?10;:-/-?481??.-?5?-<;>@5;:;2@41'1>51?+->>-:@5?/-:/188105: <-E91:@;2@41/4-?1<>5/1<-E-.815:>1?1/@;2@41:A9.1;2?4->1?;2;A>;99;:'@;/7/4-?-.81A<;:?A/4 1D1>/5?1(41?4->1?;2;99;:'@;/7/-:/188105:-/-?481??1D1>/5?1C588.1B-8A10-@@41/8;?5:3<>5/1;2@41;99;:'@;/7 ;:@41@>-05:30-E599105-@18E<>1/105:3@410-@1-?;2C45/4?A/4B-8A15?.15:301@1>95:10

%\$#\$""\$#-\$"( "\$:E'1>51?+->>-:@@4-@5?;A@?@-:05:3-2@1>5@?-<<85/-.81+->>-:@ D<5>-@5;:(591?4-88.1-A@;9-@5/-88E@1>95:-@10

("#"(411D1>/5?1<>5/1;2@41;99;:'@;/7/4-?-.81A<;:1D1>/5?1;2@41'1>51?+->>-:@?1=A-8?-: -9;A:@1=A-8@;-<>195A9@;@41amp#56;amp#53;amp#47;amp#45;amp#46;amp#56;amp#49;amp#35;amp#2;amp#52;amp#50;amp#3;amp#63;amp#65;amp#46;amp#54;amp#49;amp#47;amp#64;amp#64;amp#59;amp#45;amp#48;amp#54;amp#65;amp#63;amp#64;amp#57;amp#49;amp#58;amp#64;amp#45;amp#63;amp#48;amp#49;amp#63;amp#47;5.105:H06A?@91:@?@;D1/5?-.585@EI .18;C(41H<85/-.81#42I5?@412-59->71@:1@-??1@B-8A1<1>?4->1;2;99;:'@;/7/-8/A8-@105:@41?;8105?/>1@5;:;2 @41;9<-:E-?9;?@>1/1:@8E<A.85?410.E@41;9<-:E-@@41@591;2@415??A-:/1;2@41-<<85/-.81'1>51?+->>-:@(41 ;9-:EC58801@195:1@41<<85/-.81#*;:-:-::A-8.-?5?;>9;>12>1=A1:@8E525:@41;9<-:EJ?05?/>1@5;:?53:525/-:@ 01B18;91:@?C->-:@

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

"#"\$)'A.61/@@;-<85/-.818-C@41'151?+->>-:@?9-E.1@>-:?21>>10-@@41;@5;:;2@414;801A<;: ?A>>1:01>;2@41'1>51?+->>-:@?C5@4@41-<<>;<>5-@15:?@>A91:@?;2@>-:?21>

(#\$(41'1>51?+->>-:@?->1:;@85?@10;:#-?0-=-:E;@41>:-@5;:-8?1/A>5@51?1D/4-:31;>;@41> :-@5;:-88E>1/;3:5F10@>-05:3?E?@19;>@41('

\$##
\$"D/1<@.EB5>@A1;2?A/44;801>J?;C:1>?45<;2?4->1?;2;A>;99;:'@;/7@414;801>?;2@41 '1>51?+->>-:@?C588:;@4-B1@41>534@?;><>5B58131?;24;801>?;2;A>;99;:'@;/75:/8A05:3-:EB;@5:3>534@?A:@58@41E 1D1>/5?1@415>'1>51?+->>-:@?

"\$
"##;2>-/@5;:-8?4->1?;2;99;:'@;/7C588.15??A10A;:@411D1/5?1;2@41'1>51?+->>-:@? &-@41>C1?4-88-@;A>181/@5;:15@41>-E-/-?4-06A?@91:@5:1?1/@;2?A/42-/@5;:5:-:-9;A:@1=A-8@;?A/42>-/@5;: 9A8@58510.E@411D1/5?1<>5/1;>>;A:00;C:@41:A9.1>;2?4->1?;2;99;:'@;/7@;.15??A10@;@41:1->1?@C4;81 :A9.1>

!# !? "!&\$

""#!""###

\$A>/4->@1>-A@4;>5F1?;A>;->0;25>1/@;>?@;/8-??52E-:0>1/8-??52E-:EA:5??A10?4->1?;2;99;:'@;/7;> <>121>>10?@;/75:@;;@41>/8-??1?;>?1>51?;2?@;/75:/8A05:3;:1;>9;>1/8-??1?;>?1>51?;2?@;/7@4-@4-B1<>5;>5@EC5@4 >1?1/@@;B;@5:3534@?05B501:0?;>A;:85=A50-@5;:;B1;A>;99;:'@;/7;A>'1>51?%>121>>10'@;/7;A>'1>51? %>121>>10'@;/7;>;A>'1>51?!%>121>>10'@;/7-:0-A@4;>5F1?A?@;5??A1@41:1C8E/8-??52510?4->1??A.61/@@;@418595@-@5;:? /;:@-5:105:@41@1>9?;2;A>'1>51?!%>121>>10'@;/701?/>5.10-.;B1%>5;>@;@415??A-:/1;2?4->1?;21-/4:1C/8-??;> ?1>51?;A>;->0;25>1/@;>?5?>1=A5>10.E"->E8-:08-C-:0.E;A>/4->@1>@;?1@?A.61/@@;@41<>;B5?5;:?;2;A>/4->@1> >13->05:3@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>;2;A>?@;/7-:0@411D<>1??@1>9?;2-:E;@41>/8-??;>?1>51?;2;A>?@;/7 @41:;A@?@-:05:3@41<>121>1:/1?/;:B1>?5;:;>;@41>>534@?B;@5:3<;C1>?>1?@>5/@5;:?5:/8A05:3>1?@>5/@5;:?-?@; @>-:?21>-.585@E8595@-@5;:?-?@;05B501:0?-:0;@41>05?@>5.A@5;:?=A-8525/-@5;:?-:0@1>9?-:0/;:05@5;:?;2>1019<@5;:2;> 1-/4/8-??;>?1>51?\$A>;->0;25>1/@;>?9-E@-71@41?1-/@5;:?C5@4;A@?@;/74;801>-<<>;B-8A:81???@;/74;801>-<<>;B-85? >1=A5>10.E@41>A81?;2-:E?@;/71D/4-:31;>-A@;9-@5/=A;@-@5;:?E?@19;:C45/4;A>?1/A>5@51?9-E.185?@10;>@>-010;>@41 @1>9?;2-:E;@41>/8-??;>?1>51?;2;A>?@;/7(41>12;>1;A>;->0;25>1/@;>?/;A80-A@4;>5F1@415??A-:/1;2?4->1?;2 ;99;:'@;/7;><>121>>10?@;/7C5@4@1>9?-:0/;:05@5;:?@4-@/;A804-B1@411221/@;2018-E5:30121>>5:3;><>1B1:@5:3- /4-:315:/;:@>;8;>;@41>@>-:?-/@5;:@4-@9534@5:B;8B1-<>195A9<>5/12;>?4->1?;2;A>;99;:'@;/7;>;@41>C5?1.15: @41.1?@5:@1>1?@;2;A>?@;/74;801>?

*"#!#"

&!"!"!*

\$A>/4->@1>?A.61/@@;/1>@-5:1D/1@5;:?/;:@-5:?/1@-5:>1?@>5/@5;:?;:@41:A9.1>;2?4->1?;2;A>?@;/7@4-@- <1>?;:9-E;C:\$A>/4->@1>/;:@-5:?-?@;/7;C:1>?45<8595@@4-@<>;45.5@?-:E<1>?;:A:81??1D19<@10.E;A>;->0;2 5>1/@;>?2>;9-/=A5>5:3;>4;805:305>1/@8E;>5:05>1/@8E-<<8E5:3-@@>5.A@5;:>A81?A:01>@41;01?4->1?;2;A>/-<5@-8?@;/7 5:1D/1??;2?5::A9.1>;2?4->1?;>B-8A1C45/41B1>5?9;>1>1?@>5/@5B1;2@41-33>13-@1;2@41;A@?@-:05:3?4->1?;2;A> ?@;/7;>?;2@41:A9.1>;2?4->1?;>B-8A1C45/41B1>5?9;>1>1?@>5/@5B1;2@41;A@?@-:05:3?4->1?;2;A>;99;:'@;/7 %A>?A-:@@;;A>/4->@1>;A>;->0;25>1/@;>?4-?@41<;C1>@;5:/>1-?1;>01/>1-?1@41<1>/1:@-31;2?@;/7@4-@-<1>?;:9-E .1:125/5-88E;>/;:?@>A/@5B18E;C:;C1B1>-:E01/>1-?10?@;/7;C:1>?45<8595@C588:;@-<<8E@;-:E<1>?;:C4;?1 <1>/1:@-31;C:1>?45<;2;A>?@;/75?5:1D/1??;2?A/401/>1-?10?@;/7;C:1>?45<8595@A:@58@4-@<1>?;:J?<1>/1:@-31;C:1>?45< ;2;A>?@;/71=A-8?;>2-88?.18;C@4101/>1-?10?@;/7;C:1>?45<8595@):@58?A/4-<1>?;:J?<1>/1:@-31;C:1>?45<;2;A>?@;/7 2-88?.18;C?A/401/>1-?10?@;/7;C:1>?458595@-:E2A@41>-/=A5?5@5;:;2?@;/7C588.15:B5;8-@5;:;2@4101/>1-?10?@;/7 ;C:1>?45<8595@

\$A>/4->@1>2A>@41><>;45.5@?5-:E<1>?;:2>;9.1:125/5-88E;>/;:?@>A/@5B18E;C:5:3;A>?@;/7@4-@C;A80>1?A8@ 5:A?.15:3H/8;?18E4180IA:01>'1/@5;:4;2@41;01C5@4;A@>13->0@;C41@41>@41?4->1?->1;C:100A>5:3@418-?@4-82 ;2-@-D-.81E1->C;A80/-A?1A?@;/;:?@>A/@5B18E;C: ;>9;>1;2@41;C:1>?455:@11?@?5:-@1:-:@;2;A>>1-8 <>;<1>@EC5@45:@4191-:5:3;2'1/@5;:0?;2@41;01;>C;A80;@41>C5?1/-A?1A?@;2-58@;=A-852E-?-&( ;>55-:E<1>?;:2>;9@>-:?21>>5:3;A>?@;/752?A/4@>-:?21>C;A80>1?A8@5:;A>?@;/7.15:3.1:125/5-88E;C:10.E21C1>@4-: <1>?;:?:E<1>?;:C4;-/=A5>1?;>-@@19<@?;>5:@1:0?@;-/=A5>1.1:125/5-8;>/;:?@>A/@5B1;C:1>?45<;2;A>?@;/7@4-@ C588;>9-EB5;8-@1-:E;2@412;>13;5:3>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>;>C4;5?@415:@1:010@>-:?21>11;2?4->1?;2 ;A>?@;/7@4-@->1@>-:?21>>10@;@41@>A?@-?01?/>5.10.18;C5?>1=A5>10@;35B1C>5@@1::;@5/1599105-@18E@;A?;>5:@41 1B1:@;2-<>;<;?10;>-@@19<@10@>-:?21>-@81-?@0-E?<>5;>C>5@@1::;@5/1@;A?-:0<>;B501A?C5@4?A/4;@41>5:2;>9-@5;: -?C19-E>1=A1?@5:;>01>@;01@1>95:1@411221/@;2?A/4@>-:?21>;:;A>=A-8525/-@5;:-?-&((412;>13;5:3>1?@>5/@5;:?;: ;C:1>?45<-:0@>-:?21>C588:;@-<<8E52;A>;->0;25>1/@;>?01@1>95:1?@4-@5@5?:;8;:31>5:;A>.1?@5:@1>1?@?@;-@@19<@@; =A-852E;>@;/;:@5:A1@;=A-852E-?-&(;>@4-@/;985-:/1C5@4?A/41?@>5/@5;:?5?:;8;:31>>1=A5>105:;>01>2;>A?@; =A-852E-?-&(

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

1?@>5/@5;:?85?@10A:01>55:@41<>1/105:3<->-3>-<42;>")>.-:&(!!")>.-:%->@:1>?%!!" '1>B5/1%>;B501>!!-:0<1>?;:?;C:5:3-05>1/@;>5:05>1/@5:@1>1?@5:")>.-:&(!!")>.-:%->@:1>?% !!"'1>B5/1%>;B501>!!

:E-@@19<@10@>-:?21>;2?4->1?;2;A>?@;/7C45/4521221/@5B1C;A80>1?A8@5:-B5;8-@5;:;2@412;>13;5:3 >1?@>5/@5;:?C588/-A?1@41:A9.1>;2?4->1?;2;A>?@;/7/-A?5:3@41B5;8-@5;:>;A:010A@;@41:1-1?@C4;81?4->1@;.1 -A@;9-@5/-88E@>-:?21>>10@;-@>A?@2;>@41.1:125@;2;:1;>9;>1/4->5@-.81.1:125/5->51?-:0@41<>;<;?10@>-:?21>11C588:;@ -/=A5>1-:E>534@?5:?A/4?@;/7(41-A@;9-@5/@>-:?21>C588.1011910@;.11221/@5B1-?;2@41/8;?1;2.A?5:1??;:@41 .A?5:1??0-E-?0125:105:;A>/4->@1><>5;>@;@410-@1;2@41@>-:?21>22;>-:E>1-?;:@41@>-:?21>@;@41@>A?@0;1?:;@;//A> ;>C;A80:;@<>1B1:@-B5;8-@5;:;2@41>1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>/;:@-5:105:;A>/4->@1>;A>/4->@1><>;B501?@4-@ @41<;>@10@>-:?21>C588.1@>1-@10-?5:B-8502>;9@41;A@?1@'4->1?;2?@;/741805:@41@>A?@C588.15??A10-:0;A@?@-:05:3 ?4->1?(41<>;<;?10@>-:?21>11C588:;@.1:125@1/;:;95/-88E2>;9;C:1>?45<;2-:E?@;/741805:@41@>A?@C5884-B1:;>534@? @;05B501:0?-:0:;>534@?@;B;@1;>;@41>>534@?-@@>5.A@-.81@;@41?4->1?;2?@;/741805:@41@>A?@(41@>A?@11;2@41@>A?@C588 4-B1-88B;@5:3>534@?-:0>534@?@;05B501:0?;>;@41>05?@>5.A@5;:?C5@4>1?1/@@;?4-1?41805:@41@>A?@(41?1>534@?C588.1 1D1>/5?102;>@411D/8A?5B1.1:125@;2@41/4->5@-.81.1:125/5->E:E05B501:0;>;@41>05?@>5.A@5;:<-50<>5;>@;;A>05?/;B1>E @4-@?4->1?;2;A>?@;/74-B1.11:@>-:?21>>10@;@41@>A?@C588.1-50.E@411/5<51:@@;@41@>A?@11A<;:019-:0:E05B501:0 ;>;@41>05?@>5.A@5;:-A@4;>5F10.A@A:<-50C588.1<-50C41:0A1@;@41@>A?@11:E05B501:0;>;@41>05?@>5.A@5;:<-50@;@41 @>A?@11C588.141805:@>A?@2;>@41/4->5@-.81.1:125/5->E'A.61/@@;"->E8-:08-C@41@>A?@11C5884-B1@41-A@4;>5@E@;>1?/5:0 -?B;50-:EB;@1/-?@.E@41<>;<;?10@>-:?21>11<>5;>@;;A>05?/;B1>E@4-@@41?4->1?4-B1.11:@>-:?21>>10@;@41@>A?@-:0@; >1/-?@@41B;@15:-//;>0-:/1C5@4@4101?5>1?;2@41@>A?@11-/@5:32;>@41.1:125@;2@41/4->5@-.81.1:125/5->E;C1B1>52C1 4-B1-8>1-0E@-71:5>>1B1>?5.81/;><;>-@1-/@5;:@41:@41@>A?@11C588:;@4-B1@41-A@4;>5@E@;>1?/5:0-:0>1/-?@@41B;@1

+5@45:? 0-E?;2>1/15B5:3:;@5/12>;9A?@4-@?4->1?;2;A>?@;/74-B1.11:@>-:?21>>10@;@41@>A?@@41@>A?@11C588 ?188@41?4->1?@;-<1>?;:01?53:-@10.E@41@>A?@11C4;?1;C:1>?45;2@41?4-1?C588:;@B5;8-@1@41-.;B1;C:1>?45< 8595@-@5;:?);:?A/4?-81@415:@11?@;2@41/4->5@-.81.1:125/5->E5:@41?4->1??;80C588@1>95:-@1-:0@41@>A?@11C588 05?@>5.A@1@41:1@<>;/110?;2@41?-81@;@41<>;<;?10@>-:?21>11-:0@;@41/4->5@-.81.1:125/5->E-?2;88;C?@41<>;<;?10 @>-:?21>11C588>1/15B1@4181??1>;25@41<>5/1<-50.E@41<>;<;?10@>-:?21>112;>@41?4->1?;>52@41<>;<;?10@>-:?21>11050 :;@35B1B-8A12;>@41?4->1?5:/;::1/@5;:C5@4@411B1:@/-A?5:3@41?4->1?@;.141805:@41@>A?@13-352@01B5?1;>;@41> ?5958->@>-:?-/@5;:@419->71@<>5/1-?0125:105:;A>/4->@1>;2@41?4->1?;:@410-E;2@411B1:@/-A?5:3@41?4->1?@;.1 41805:@41@>A?@-:055@41<>5/1<1>?4->1>1/15B10.E@41@>A?@112>;9@41?-81;>;@41>05?;?5@5;:;2@41?4-1?(41@>A?@11 9-E>10A/1@41-9;A:@<-E-.81@;@41<>;<;?10@>-:?21>11.E@41-9;A:@;205B501:0?-:0;@41>05?@>5.A@5;:?<-50@;@41 <>;<;?10@>-:?21>11-:0;C10.E@41<>;<;?10@>-:?21>11@;@41@>A?@

:E:1@?-81<>;/110?5:1D/1??;2@41-9;A:@<-E-.81@;@41<>;<;?10@>-:?21>11C588.1<-50599105-@18E@;@41 /4->5@-.81.1:125/5->E2<>5;>@;;A>05?/;B1>E@4-@;A>?@;/74-B1.11:@>-:?21>>10@;@41@>A?@@41?4->1?->1?;80.E@41 <>;<;?10@>-:?21>11@41:5@41?4->1??4-88.1011910@;4-B1.11:?;80;:.14-82;2@41@>A?@-:055@;@411D@1:@@4-@@41 <>;<;?10@>-:?21>11>1/15B10-:-9;A:@2;>@41?4->1?@4-@1D/110?@41-9;A:@@41<>;<;?10@>-:?21>11C-?1:@5@810@;>1/15B1 @411D/1???4-88.1<-50@;@41@>A?@11A<;:019-:0

:-005@5;:?4->1?;2;A>?@;/741805:@41@>A?@C588.1011910@;4-B1.11:;221>102;>?-81@;A?;>;A>01?53:11-@- <>5/1<1>?4->11=A-8@;@4181??1>;2@41<>5/1<1>?4->15:@41@>-:?-/@5;:@4-@>1?A8@105:@41@>-:?21>@;@41@>A?@;>5:@41/-?1 ;2-01B5?1;>352@@419->71@<>5/1-@@41@591;2@4101B5?1;>352@-:0@419->71@<>5/1;:@410-@1C1;>;A>01?53:11-//1<@ @41;221>+19-E>10A/1@41-9;A:@<-E-.81@;@41<>;<;?10@>-:?21>11.E@41-9;A:@;205B501:0?-:0;@41>05?@>5.A@5;:?<-50 @;@41<>;<;?10@>-:?21>11-:0;C:10.E@41<>;<;?10@>-:?21>11@;@41@>A?@+1C5884-B1@41>534@@;-//1@@41;221A:@58@41 @>A?@114-??;80@41?4->1?);:-?-81@;A?@415:@11?@;2@41/4->5@-.81.1:125/5->E5:@41?4->1??;80C588@1>95:-@1-:0@41 @>A?@11C58805?@>5.A@1@41:1@<>;/110?;2@41?-81@;@41<>;<;?10@>-:?21>11-:0-:E05B501:0?;>;@41>05?@>5.A@5;:?4180.E@41 @>A?@11?4-88.1-50@;@41/4-5@-.81.1:125/5->E

B1>E;C:1>;29;>1@4-:;>?A/48;C1><1>/1:@-31-?>1=A5>10.E@41;01;>@41>13A8-@5;:?<>;9A83-@10 @41>1A:01>5::A9.1>;>5:B-8A1;2@41;A@?@-:05:3?4->1?;2;A>?@;/75:/8A05:3;A>;99;:'@;/7C5@45: 0-E?-2@1>@41 1:0;21-/4@-D-.81E1->C588.1>1=A5>10@;35B1C>5@@1::;@5/1@;A??@-@5:3@41:-91-:0-00>1??;2?A/4;C:1>@41:A9.1>;2 ?4->1?;21-/4/8-??-:0?1>51?;2?4->1?;2;A>?@;/7@4-@@41;C:1>.1:125/5-88E;C:?-:0-01?/>5@5;:;2@419-::15:C45/4 @41?4->1?->14180-/4;C:1>?4-88<>;B501@;A??A/4-005@5;:-85:2;>9-@5;:-?C19-E>1=A1?@@;01@1>95:1@411221/@52 -:E;2@41.1:125/5-8;C:1>?45<;:;A>=A-8525/-@5;:-?-&(-:0@;1:?A>1/;985-:/1C5@4@41;C:1?45<8595@-@5;:?: -005@5;:1-/4.1:125/5-8;>/;:?@>A/@5B1;C:1>-:01-/4<1>?;:C4;5?4;805:3?4->1?;2;A>?@;/72;>?A/4;C:1>C588A<;: 019-:0.1>1=A5>10@;<>;B501@;A??A/45:2;>9-@5;:-?C19-E>1=A1?@@;01@1>95:1;A>=A-8525/-@5;:-?-&(-:0@; /;98EC5@4@411=A5>191:@?;2-:E@-D5:3-A@4;>5@E;>3;B1>:91:@-8-A@4;>5@E;>@;01@1>95:1?A/4/;985-:/1-:0@;1:?A1 /;985-:/1C5@4@41;C:1?45<8595@?

(41?1;C:1>?458595@-@5;:?/;A80018-E0121;><>1B1:@-@>-:?-/@5;:;>-/4-:315:/;:@>;8@4-@9534@5:B;8B1- <>195A9<>5/12;>;A>;99;:'@;/7;>9534@;@41>C5?1.15:@41.1?@5:@1>1?@?;2;A>?@;/74;801>?

\$!!!#!"

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

%!#!"

\$A>/4->@1><>;B501?@4-@?A.61/@@;@41>534@?;24;801>?;2;:1;>9;>1/8-??1?;>?1>51?;2<>121>>10?@;/7-05>1/@;> 9-E.1>19;B10C5@4;>C5@4;A@/-A?1-:0.E@41-225>9-@5B1B;@1;2-@81-?@@C;@45>0?;2@41B;@1?1:@5@810@;.1/-?@.E;A> ?@;/74;801>?31:1>-88E5:@41181/@5;:;2;A>05>1/@;>?(45?<>;B5?5;:C41:/;A<810C5@4@411D/8A?5B1<;C1>;2;A>;->0;2 5>1/@;>?@;2588B-/-:@05>1/@;>?45<?9-E<>1/8A01?@;/74;801>?2>;9>19;B5:35:/A9.1:@05>1/@;>?1D/1<@.E-?A.?@-:@5-8 -225>9-@5B1B;@1-:025885:3@41B-/-:/51?/>1-@10.E?A/4>19;B-8C5@4@415>;C::;95:11?

## #( #

"->E8-:08-C<1>95@?-"->E8-:0/;><;>-@5;:@;5:/8A015:5@?/4->@1>-<>;B5?5;:18595:-@5:3@4185-.585@E;25@? 05>1/@;>?-:0;225/1>?@;@41/;><;>-@5;:-:05@??@;/74;801>?2;>9;:1E0-9-31?1D/1<@2;>85-.585@E>1?A8@5:32>;95-/@A-8 >1/15<@;2-:59<>;<1>.1:125@;><>;25@5:9;:1E<>;<1>@E;>?1>B5/1?;>55-/@5B1;>0185.1>-@105?4;:1?@E1?@-.85?4105:- 6A0391:@;>;@41>25:-8-06A05/-@5;:@;.19-@1>5-8@;@41/-A?1;2-/@5;:\$A>/4->@1>/;:@-5:?-<>;B5?5;:@4-@18595:-@1?@41 85-.585@E;2;A>05>1/@;>?-:0;225/1>?@;@419-D59A91D@1:@<1>95@@10.E"->E8-:08-C

"->E8-:08-C>1=A5>1?-"->E8-:0/;><;>-@5;:A:81??5@?/4->@1><>;B501?;@41>C5?1C45/4;A>/4->@1>0;1?:;@@; 5:019:52E-05>1/@;>;>;225/1>C4;4-?.11:?A//1??2A8;:@4191>5@?;>;@41>C5?15:@410121:?1;2-:E<>;/1105:3@;C45/4 41;>?415?9-01;>@4>1-@1:10@;.19-01-<->@E.E>1-?;:;245?;>41>?1>B5/15:@4-@/--/5@E"-E8-:08-C<1>95@?- "->E8-:0/;><;>-@5;:@;5:019:52E5@?<>1?1:@-:02;>91>05>1/@;>?-:0;225/1>?-9;:3;@41>?-3-5:?@6A0391:@?<1:-8@51? 25:1??1@@8191:@?-:0>1-?;:-.811D1:?1?-/@A-88E5:/A>10.E@4195:/;::1/@5;:C5@4-:E<>;/1105:3@;C45/4@41E9-E.1 9-01;>@4>1-@1:10@;.19-01-<->@E.E>1-?;:;2@415>?1>B5/15:@4;?1;>;@41>/-<-/5@51?A:81??5@5?1?@-.85?410@4-@

• G -:-/@;>;95??5;:;2@4105>1/@;>;>;225/1>C-?9-@1>5-8@;@419-@@1>35B5:3>5?1@;@41<>;/1105:3-:0

• G C-?/;995@@105:.-02-5@4;>

• G C-?@41>1?A8@;2-/@5B1-:00185.1>-@105?4;:1?@E

• G @4105>1/@;>;>;225/1>-/@A-88E>1/15B10-:59<>;<1><1>?;:-8.1:125@5:9;:1E<>;<1>@E;>?1>B5/1?;>
• G 5:@41/-?1;2-:E/>595:-8<>;/1105:3@4105>1/@;>;>;225/1>4-0>1-?;:-.81/-A?1@;.1851B1@4-@@41-/@;>;95??5;: C-?A:8-C2A8

;C1B1>A:01>"->E8-:08-C-"->E8-:0/;><;>-@5;:9-E:;@5:019:52E2;>-:-0B1>?16A0391:@5:-?A5@.E;>5: @41>534@;2@41/;><;>-@5;:;>2;>-6A0391:@;285-.585@E;:@41.-?5?@4-@<1>?;:-8.1:125@C-?59<>;<1>8E>1/15B10A:81??5: 15@41>/-?1-/;A>@;>01>?5:019:525/-@5;:-:0@41:;:8E2;>1D1:?1?:-005@5;:"-E8-:08-C<1>95@?-"->E8-:0 /;><;>-@5;:@;-0B-:/1>1-?;:-.811D1:?1?@;-051/@;>;>;225/1>A;:@41/;<;>-@5;:J?>1/15<@;2

• G -C>5@@1:-225>9-@5;:.E@4105>1/@;>;>;225/1>;245?;>41>3;;02-5@4.18512@4-@41;>?414-?91@@41?@-:0->0;2 /;:0A/@:1/1??->E2;>5:019:525/-@5;:.E@41/;><;>-@5;:-:0
• G -C>5@@1:A:01>@-75:3.E@4105>1/@;>;>;225/1>;>;:@4105>1/@;>J?;>;225/1>J?.14-82@;>1<-E@41-9;A:@<-50;> >159.A>?10.E@41/;><;>-@5;:525@5?A8@59-@18E01@1>95:10@4-@@4105>1/@;>;>;225/1>050:;@911@@41?@-:0->0;2 /;:0A/@

\$A>/4->@1>-:0.E8-C?;.853-@1A?@;@419-D59A91D@1:@<1>95@@10.E"->E8-:08-C@;5:019:52E-:0C5@4;A@ >1=A5>5:3-<>18595:->E01@1>95:-@5;:;2@41A8@59-@11:@5@8191:@@;5:019:525/-@5;:<-E;>>159.A>?1>1-?;:-.811D<1:?1?5: -0B-:/1;225:-805?<;?5@5;:;2-<>;/1105:3@;

• G -:E<>1?1:@;>2;>91>05>1/@;>;>;225/1>C4;5?9-01;>@4>1-@1:10@;.19-01-<->@E@;;>C5@:1??5:@41 <>;/1105:3.E>1-?;:;245?;>41>?1>B5/15:@4-@/--/5@E;
• G -:E5:05B50A-8C4;C4581-05>1/@;>;>;225/1>;2;A>;9-:E-:0-@;A;9<-:EJ?>1=A1?@?1>B1?;>4-??1>B10 -:;@41>/;><;>-@5;:>1-81?@-@15:B1?@91:@@>A?@8595@1085-.585@E/;9<-:E<->@:1>?456;5:@B1:@A1@>A?@19<8;E11 .1:125@<8-:;>-:E;@41>1:@1><>5?1-?-05>1/@;>;225/1>@>A?@11919.1>9-:-31>;><->@:1>-:0C4;5?9-01;> @4>1-@1:10@;.19-01-<->@E@;;>C5@:1??5:@41<>;/1105:3.E>1-?;:;245?;>41>?1>B5/15:@4-@/-<-/5@E

\$A>/4->@1>-:0.E8-C?-8?;<1>95@A??A.61/@@;-<<>;B-82>;9;A>;->0;25>1/@;>?@;5:019:52E-:0-0B-:/1 1D<1:?1?@;-:E<1>?;:C4;?1>B10-<>101/1??;>;2;A>;9<-:E5:-:E;2@41/--/5@51?01?/5.10-.;B1-:0@;-:E19<8;E11 ;>-31:@;2;A>;9<-:E;>-<>101/1??;>;2;A>;9<-:E

#!#"

+14-B11:@1>105:@;5:019:525/-@5;:-3>1191:@?C5@41-/4;2;A>05>1/@;>?-:0:-9101D1/A@5B1;225/1>?-/4 5:019:525/-@5;:-3>1191:@<>;B501?@4-@C1C5885:019:52E-:04;804->981??1-/4?A/405>1/@;>;>:-9101D1/A@5B1;225/1>@; @412A881?@1D@1:@<1>95@@10.E8-C

\$"""#"

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

2@1>?A/425B1E1-><1>5;0-:E?A/4.A?5:1??/;9.5:-@5;:9A?@.1>1/;991:010.E@41.;->0;205>1/@;>?;2@41 /;><;>-@5;:-:0-<<>;B10.E@41-225>9-@5B1B;@1;2-@81-?@5 ;2@41B;@1?1:@5@810@;.1/-?@.E4;801>?;2;A@?@-:05:3 B;@5:3?4->1?;2@41/;><;>-@5;:-:055@C;@45>0?;2@41B;@1?1:@5@810@;.1/-?@.E4;801>?;2B;@5:3?4->1?;2@41/;><;>-@5;: ;@41>@4-:?4->1?4180.E@415:@1>1?@10?@;/74;801>C5@4C4;9;>C5@4C4;?1-22585-@1@41.A?5:1??/;9.5:-@5;:5?@;.1 1221/@10;>4180.E-:-22585-@1;>-??;/5-@1;2@415:@1>1?@10?@;/74;801>A:81??-9;:3;@41>/;:05@5;:?@41/;><;>-@5;:J? /;99;:?@;/74;801>?>1/15B1-95:59A9<>5/1-?0125:105:@41"!2;>@415>?4->1?-:0@41/;:?501>-@5;:5?>1/15B105: /-?4;>5:@41?-912;>9-?<>1B5;A?8E-50.E@415:@11?@10?@;/74;801>2;>5@??4->1?

):01>@41"!-<1>?;:5?:;@-:H5:@1>1?@10?@;/74;801>I52@41.;->0;205>1/@;>?-<<>;B105:-0B-:/1@41 @>-:?-/@5;:.EC45/4@41<1>?;:;@41>C5?1C;A804-B1.1/;91-:5:@1>1?@10?@;/74;801>/;><;>-@5;:J?.;->0;205>1/@;>? 9-E<>;B501@4-@5@?-<<>;B-85??A.61/@@;/;985-:/1C5@4-:E@19?-:0/;:05@5;:?01@1>95:10.E5@

+14-B1181/@10@;;<@;A@;2@41?1<>;B5?5;:?;2@41"!.E>1?;8A@5;:;2;A>;->0;25>1/@;>?;C1B1>;A> ;->0;25>1/@;>?9-E.E>1?;8A@5;:181/@@;>11-8@412;13;5:3;@;A@?2;9@41.A?5:1??/;9.5:-@5;:<>;B5?5;:?;2@41 "!5:@412A@A>1

#!! \$"#"

(41"!<>;B501?@4-@-4;801>;2H/;:@>;8?4->1?I;2-"->E8-:0/;><;>-@5;:-/=A5>105:-H/;:@>;8?4->1 -/=A5?5@5;:I4-?:;B;@5:3>534@?C5@4>1?1/@@;?A/4?4-1?1D/1<@@;@411D@1:@-<<>;B10.E@41-225>9-@5B1B;@1;2@C;@45>0? ;2@41B;@1?1:@5@810@;.1/-?@;:@419-@@1>1D/8A05:3-:E;2@412;88;C5:3<1>?;:?1:@5@810@;1D1>/5?1;>05>1/@@411D1>/5?1;2 @41B;@5:3<;C1>;2?A/4?4->1?5:@41181/@5;:;205>1/@;>?5-<1>?;:C4;9-71?;><>;<;?1?@;9-71-/;:@>;8?4->1 -/=A5?5@5;:55-:;225/1>;2@41/;><;>-@5;:;>555-:198;E11;2@41/;<;>-@5;:C4;5?-8?;-05>1/@;>;2@41/;><;>-@5;: H;:@>;8?4->1?I->1B;@5:3?4->1?;2?@;/7@4-@52-33>13-@10C5@4-88;@41>?A/4?4->1?<>1B5;A?8E-/=A5>1005>1/@8E;> 5:05>1/@8E.E@41-/=A5>1>;>5:>1?1/@;2C45/4@41-/=A51>5?-.81@;1D1>/5?1;>05>1/@@411D1>/5?1;2B;@5:3<;C1>1D/1<@ ?;818E.EB5>@A1;2->1B;/-.81<>;DEC;A801:@5@81@41-/=A5>1>@;1D1>/5?1B;@5:3<;C1>5:181/@5:305>1/@;>?C5@45:;:1;2@41 2;88;C5:3>-:31?;2B;@5:3<;C1>;:1@1:@4;>9;>1.A@81??@4-:;:1@45>0;:1@45>0;>9;>1.A@81??@4-:-9-6;>5@E ;>-9-6;>5@E;>9;>1;2-88B;@5:3<;C1>

;:@>;8?4->1?0;:;@5:/8A01?4->1?@4-@@41-/=A5>5:3<1>?;:5?@41:1:@5@810@;B;@1-?->1?A8@;24-B5:3<>1B5;A?8E ;.@-5:10?@;/74;801>-<<>;B-8;>?4->1?-/=A5>1005>1/@8E2>;9@41/;><;>-@5;:H/;:@>;8?4->1-/=A5?5@5;:I91-:?@41 -/=A5?5@5;:05>1/@8E;>5:05>1/@8E;2;C:1>?45<;2;>@41<;C1>@;05>1/@@411D1>/5?1;2B;@5:3<;C1>C5@4>1?<1/@@;5??A10 -:0;A@?@-:05:3/;:@>;8?4->1??A.61/@@;/1>@-5:1D/1<@5;:?

<1>?;:C4;4-?9-01;><>;<;?1?@;9-71-/;:@>;8?4->1-/=A5?5@5;:A;:?-@5?2-/@5;:;2/1@-5:/;:05@5;:? 5:/8A05:3-:A:01>@-75:3@;<-E1D<1:?1?-:09-75:3-:-/=A5>5:3<1>?;:?@-@191:@-?01?/>5.105:@41"!9-E/;9<18 @41.;->0;205>1/@;>?@;/-88-?1/5-8911@5:3;2?@;/74;801?@;.14180C5@45: 0-E?;2019-:0@;/;:?501>@41B;@5:3>534@? ;2@41/;:@>;8?4->1?2:;>1=A1?@2;>-911@5:35?9-01@41/;><;>-@5;:9-E5@?182<>1?1:@@41=A1?@5;:-@-:E?@;/74;801>?J 911@5:3

2B;@5:3>534@?;2/;:@>;8?4->1?->1:;@-<<>;B10-@@41911@5:3;>52@41-/=A5>5:3<1>?;:0;1?:;@0185B1>-: H-/=A5>5:3<1>?;:?@-@191:@I-?>1=A5>10.E@41?@-@A@1@41:?A.61/@@;/1>@-5:/;:05@5;:?-:08595@-@5;:?@41/;><;>-@5;:9-E >10119-:E;>-88;2@41/;:@>;8?4->1?1D/1@@4;?12;C45/4B;@5:3>534@?4-B1<>1B5;A?8E.11:-<<>;B102;>2-5>B-8A1 01@1>95:10C5@4;A@>13->0@;@41-.?1:/1;2B;@5:3>534@?2;>@41/;:@>;8?4->1?-?;2@410-@1;2-:E911@5:3;2?@;/74;801>?-@ C45/4@41B;@5:3>534@?;2?A/4?4->1?->1/;:?501>10-:0:;@-<<>;B10;>52:;?A/4911@5:35?4180-?;2@410-@1;2@418-?@ /;:@>;8?4->1-/=A5?5@5;:2B;@5:3>534@?2;>/;:@>;8?4->1?->1-<<>;B10-@-?@;/74;801>?J911@5:3-:0@41-/=A5>1>.1/;91? 1:@5@810@;B;@1-9-6;>5@E;2@41?4->1?1:@5@810@;B;@1-88;@41>?@;/74;801>?9-E1D1>/5?1-<<>-5?-8>534@?(412-5>B-8A1;2 @41?4->1?-?01@1>95:102;><;?1?;2?A/4-<<>-5?-8>534@?9-E:;@.181??@4-:@4145341?@<>5/1<1>?4->1<-50.E@41 -/=A5>1>5:@41/;:@>;8?4->1-/=A5?5@5;:

(41/;:@>;8?4->1-/=A5?5@5;:?@-@A@10;1?:;@-<8E@;5?4-1?-/=A5>105:-91>31>/;:?;850-@5;:;>?4->11D/4-:31 52@41/;><;>-@5;:5?-<->@E@;@41@>-:?-/@5;:;>55-/=A5?5@5;:?-<<>;B10;>1D19@10.E@41/4-@1>;>.E8-C?;2@41 /;><;>-@5;:

+14-B1181/@10@;;<@;A@;2@41?1<>;B5?5;:?;2@41"!?A-:@@;-<>;B5?5;:5:;A>.E8-C?;C1B1>C19-E .E-91:091:@@;;A>.E8-C?;<@5:@;@41/;:@>;8?4->1<>;B5?5;:?;2@41"!5:@412A@A>1

\$##

'A.@5@81;2(5@81
;2@41"!<1>95@?-"->E8-:0/;><;>-@5;:C5@4-/8-??;21=A5@E?1/A>5@51?>135?@1>10A:01>@41 D/4-:31/@-:0-@81-?@@4>115:011:01:@051/@;>?@;181/@@;.1?A.61/@.E<>;B5?5;:5:5@?/4->@1>;>.E8-C?;>->1?;8A@5;: ;25@?.;->0;205>1/@;>?-:0:;@C5@4?@-:05:3-:E/;:@>->E<>;B5?5;:5:@41/4->@1>;>.E8-C?@;-:E;>-88;2@412;88;C5:325B1 <>;B5?5;:?

• G -/8-??52510.;->0/;:?5?@5:3;2@4>11/8-??1?
• G -@C;@45>0?B;@1>1=A5>191:@2;>>19;B5:3-05>1/@;>
• G ->1=A5>191:@@4-@@41:A9.1>;205>1/@;>?.125D10;:8E.EB;@1;2@4105>1/@;>?
• G ->1=A5>191:@@4-@-B-/-:/E;:@41.;->0.1258810;:8E.E@41>19-5:5:305>1/@;>?-:02;>@41>19-5:01>;2@412A88 @1>9;2@41/8-??;205>1/@;>?5:C45/4@41B-/-:/E;//A>>10;>
• G -9-6;>5@E?@;/74;801>B;@1>1=A5>191:@2;>@41/-885:3;2-?@;/74;801>>1=A1?@10?1/5-8911@5:3;2?@;/74;801?

\$A>/4->@1><>;B501?@4-@1D/1<@-?9-E.1<>;B5010.E;A>;->0;25>1/@;>?5:?1@@5:3@41@1>9?;2-:E/8-??;> ?1>51?;2?@;/7C1181/@@;.1?A.61/@@;@41<>;B5?5;:?;2'A.@5@81>18-@5:3@;@4125885:3;2B-/-:/51?;:;A>;->0;2 5>1/@;>?(4>;A34<>;B5?5;:?5:;A>/4->@1>-:0.E8-C?A:>18-@10@;'A.@5@81C1-8>1-0E>1=A5>1-@C;@45>0?B;@12;>@41 >19;B-8;2-:E05>1/@;>2>;9@41;->0;25>1/@;>??B1?@5:@41;->0;25>1/@;>?@411D/8A?5B1<;C1>@;25D@41:A9.1>;2 05>1/@;>?45??A.61/@@;8595@-@5;:??1@2;@45:;A>/4->@1>-:0.E8-C?-:0

1=A5>1A:81??/-8810.E@41/4-5>9-:;2;A> ;->0;25>1/@;>?;A><>1?501:@;A>/45121D1/A@5B1;225/1>;>;A>;->0;25>1/@;>?@41>1=A1?@;2?@;/74;801>?1:@5@810@; /-?@:;@81??@4-:-9-6;>5@E;2-88B;@1?1:@5@810@;.1/-?@;:-9-@@1>-@?A/4911@5:3@;/-88-?<1/5-8911@5:3+14-B1:;@ 181/@10@;/8-??52E;A>;->0;25>1/@;>?

*""\$#-###!#!

!'#!!!(#"*

):01>@41"!-"->E8-:0/;><;>-@5;:31:1>-88E/-::;@05??;8B1-91:05@?/4->@1>91>31?188-88;>?A.?@-:@5-88E -88;25@?-??1@?1:3-315:-?4->11D/4-:31;>/;:B1>@5:@;-:;@41>1:@5@EA:81??01/8->10-0B5?-.81.E@41.;->0;205>1/@;>? -:0-<<>;B10.E@41-225>9-@5B1B;@1;2?@;/74;801>?1:@5@810@;/-?@-@81-?@@C;@45>0?;2@41B;@1?1:@5@810@;.1/-?@;:@41 9-@@1>;C1B1>-"->E8-:0/;><;>-@5;:9-E<>;B5015:5@?/4->@1>2;>-<<>;B-8;2@41?19-@@1>?.E-81??1><1>/1:@-31.A@:;@ 81??@4-:-9-6;>5@E;2-88;2@41B;@1?1:@5@810@;.1/-?@;:@419-@@1>\$A>/4->@1><>;B501?2;>-<<>;B-8;2-:E;2@41?19-@@1>? .E@41-225>9-@5B1B;@1;2?@;/74;801>?1:@5@810@;/-?@-9-6;>5@E;2@41B;@1?1:@5@810@;.1/-?@;:?A/49-@@1>?1D/1<@@4-@@41 -225>9-@5B1B;@1;2?@;/74;801>?1:@5@810@;/-?@-@81-?@@C;@45>0?;2@41B;@1?1:@5@810@;.1/-?@;:?A/49-@@1>5?>1=A5>10@; -91:0@41<>;B5?5;:?;2;A>/4->@1>>18-@5:3@;@41>19;B-8;205>1/@;>?@415:019:525/-@5;:;2;A>;225/1>?-:005>1/@;>? >1?@>5/@5;:?;:;C:1>?45<-:0@>-:?21>;2;A>?@;/7;>@41B;@1>1=A5>10@;-91:0?A/4<>;B5?5;:?"->E8-:08-C-8?;<1>95@?- "->E8-:0/;><;>-@5;:@;@>-:?21>-88;>?A.?@-:@5-88E-88;25@?-??1@?C5@4;A@@41-<<>;B-8;2@41?@;/74;801>?;2@41/;><;>-@5;: @;-:1:@5@E52-88;2@411=A5@E5:@1>1?@?;2@411:@5@E->1;C:1005>1/@8E;>5:05>1/@8E.E@41/;><;>-@5;:1/-A?1;A>;<1>-@5:3 -??1@?9-E.14180.E;A>;<1>-@5:3<->@:1>?45<;>5@??A.?505->51?@41?1?A.?505->51?9-E.1-.81@;91>31;>@>-:?21>-88;> ?A.?@-:@5-88E-88;2@415>-??1@?C5@4;A@@41-<<>;B-8;2;A>?@;/74;801>?

#"#!"

):01>;A>.E8-C?-::A-8911@5:3?;24;801>?;2;A>;99;:'@;/79A?@.141801-/4E1->-@-0-@1@591-:0<8-/1 01@1>95:10.E;A>;->0;25>1/@;>?'1/5-8911@5:3?;24;801?;2;A>;99;:'@;/79-E.1/-8810.E@41/4-5>9-:;2;A> ;->0;25>1/@;>?;A>/45121D1/A@5B1;225/1>;A><>1?501:@-:0;A>;->0;25>1/@;>?'A.61/@@;@41<>;B5?5;:?;2;A> .E8-C?-?1/5-8911@5:3;2?@;/74;801?@;-/@;:-:E9-@@1>@4-@9-E<>;<1>8E.1/;:?501>10-@-911@5:3;2?@;/74;801>? 9A?@.1/-8810.E;A>?1/>1@->EA;:@41C5@@1:>1=A1?@;2?@;/74;801>?1:@5@810@;/-?@-9-6;>5@E;2-88;2@41B;@1?1:@5@810@; .1/-?@;:@419-@@1>-@?A/4911@5:3C4;4-B1>1=A1?@10@41?1/5-8911@5:35:-//;0-:/1C5@4@41<>;/10A>1??<1/525105:;A> .E8-C?-:0<>;B5010@415:2;>9-@5;:-:0/1>@525/-@5;:?>1=A5>10.E;A>.E8-C?\$:8E9-@@1>??1@2;>@45:@41:;@5/1;2-?<1/5-8 911@5:3;2?@;/74;801>?9-E.1/;:?501>10-:0-/@10A<;:-@?A/4-911@5:3

%?#!#!?#"?&\$"""

\$A>.E8-C?<>;B501@4-@C5@4>1?1/@@;-:-::A-8911@5:3;2?@;/74;801?:;95:-@5;:?;2<1>?;:?2;>181/@5;:@;;A> ;->0;25>1/@;>?-:0@41<>;;?-8;2.A?5:1??@;.1/;:?50110.E?@;/74;801>?9-E.19-01;:8E5?A-:@@;;A>:;@5/1;2 @41911@5:355.E;>-@@4105>1/@5;:;2;A>;->0;25>1/@;>?;>555.E-4;801>;2;A>;99;:'@;/7C4;C-?- ?@;/74;801>;2>1/;>0-@@41@591;235B5:3:;@5/1-:0-@@41@591;2;A>-::A-8911@5:3C4;5?1:@5@810@;B;@1-@@41911@5:3 -:0C4;4-?/;9<8510C5@4@41-0B-:/1:;@5/1<>;/10A>1??1@2;>@45:;A>.E8-C?\$A>.E8-C?<>;B501@4-@C5@4>1?<1/@@; ?1/5-8911@5:3?;2;A?@;/74;801>?;:8E@41.A?5:1???<1/525105:;A>:;@5/1;2911@5:39-E.1.>;A34@.12;>1@41911@5:3 -:0:;95:-@5;:?;2<1>?;:?2;>181/@5;:@;;A>;->0;25>1/@;>?9-E.19-01;:8E.E;>-@@4105>1/@5;:;2;A>;->0;2 5>1/@;>?;><>;B5010@4-@@41?1/5-8911@5:34-?.11:/-88105:-//;0-:/1C5@4;A>.E8-C?2;>@41<;?1;2181/@5:3 05>1/@;>?.E-:E4;801>;2;A>;99;:'@;/7C4;C-?-?@;/74;801>;2>1/;>0-@@41@591;235B5:3:;@5/1-:0-@@41@591;2 @41?<1/5-8911@5:3C4;5?1:@5@810@;B;@1-@@41911@5:3-:0C4;4-?/;9<8510C5@4@41-0B-:/1:;@5/1<>;/10A>1??1@2;>@45: ;A>.E8-C?

CIM COMMERCIAL TRUST CORPORATION

LIST OF SUBSIDIARIES

Entity	State of Formation	Type of Organization
1021 East 7th Street (Austin) GP, LLC	Delaware	LLC
1021 East 7th Street (Austin) Owner, L.P.	Delaware	I P
1130 Howard (SF) GP, LLC	Delaware	LLC
1130 Howard (SF) Owner, L.P.	Delaware	I P
9460 Wilshire Blvd GP, LLC	Delaware	LLC
9460 Wilshire Blvd (BH) Owner, L.P.	Delaware	I P
4750 Wilshire Blvd. (LA) Owner, LLC	Delaware	LIC
CIM Commercial Trust Corporation	Maryland	Corporation
CIM Small Business Loan Trust 2018-1	Delaware	Trust
CIM Urban Holdings, LLC	Delaware	LLC
CIM Urban Partners, L.P.	Delaware	IP
CIM Urban REIT GP I, LLC	California	LLC
CIM Urban REIT GP II, LLC	Delaware	LLC
CIM Urban REIT Holdings, LLC	Delaware	LLC
CIM Urban REIT Properties IX, L.P.	Delaware	LP
CIM Urban REIT Properties XIII, L.P.	Delaware	LP
CIM Wilshire (Los Angeles) Investor, LLC	Delaware	LLC
CIM Wilshire (Los Angeles) Manager, LLC	Delaware	LLC
CIM/11600 Wilshire (Los Angeles) GP, LLC	Delaware	LLC
CIM/11600 Wilshire (Los Angeles), LP	Delaware	IP
CIM 11620 Wilshire (Los Angeles) GP, LLC	Delaware	LLC
CIM 11620 Wilshire (Los Angeles), LP	Delaware	LP
CIM/J Street Garage Sacramento GP, LLC	California	LLC
CIM/J Street Garage Sacramento, L.P	California	LLC
CIM/J Street Hotel Sacramento GP, LLC	California	LIC
CIM/J Street Hotel Sacramento, Inc.	California	Corporation
CIM/J Street Hotel Sacramento, L.P.	California	I P
CIM/Oakland 1 Kaiser Plaza GP, LLC	Delaware	LLC
CIM/Oakland 1 Kaiser Plaza, LP	Delaware	I P
First Western SBLC, Inc.	Florida	Corporation
FW Asset Holding, LLC	Delaware	LLC
Lindblade Media Center (LA) Owner, LLC	Delaware	LIC
PMC Commercial Lending, LLC	Delaware	LLC
PMC Funding Corp.	Florida	Corporation
PMC Mortgage Corp., LLC	Delaware	LLC
PMC Preferred Capital Trust-A	Delaware	Trust
PMC Properties, Inc.	Delaware	Corporation
Two Kaiser Plaza (Oakland) Owner, LLC	Delaware	LIC
Urban Partners GP, LLC	Delaware	LLC
Urban Partners GP Manager, LLC	Delaware	LLC

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statement No. 333-233255 on Form S-3 and Registration Statement No. 333-127531 on Form S-8 of our reports dated March 16, 2021, relating to the financial statements of CIM Commercial Trust Corporation and the effectiveness of CIM Commercial Trust Corporation's internal control over financial reporting appearing in this Annual Report on Form 10-K for the year ended December 31, 2020.

/s/ Deloitte & Touche, LLP

Los Angeles, California March 16, 2021

Consent of Independent Registered Public Accounting Firm

CIM Commercial Trust Corporation Dallas, Texas

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-233255) and Form S-8 (No. 333-127531) of CIM Commercial Trust Corporation and subsidiaries our reports dated March 16, 2020, relating to the consolidated financial statements and the effectiveness of CIM Commercial Trust Corporation and its subsidiaries' internal control over financial reporting, which appear in this Form 10-K.

/s/ BDO USA, LLP

Los Angeles, California March 16, 2021

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David Thompson, certify that:

• 1. I have reviewed this report on Form 10-K for the year ended December 31, 2020 of CIM Commercial Trust Corporation;
• 1. Based on my knowledge, this report does not contain any untrue statement of a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
• 1. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
• 1. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  2. (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
  3. (b) Designed such internal control over financial reporting, or caused such internal over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
  4. (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the period covered by this report based on such evaluation; and
  5. (d) Disclosed in this report any change in the registrant's internal control over financial reporting the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal reporting; and
• 1. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's audit committee of the registrant's board of directors (or persons performing the equivalent functions):
  2. (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
  3. (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 16, 2021

/s/ David Thompson David Thompson Chief Executive Officer

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Nathan D. DeBacker, certify that:

• 1. I have reviewed this report on Form 10-K for the year ended December 31, 2020 of CIM Commercial Trust Corporation;
• 1. Based on my knowledge, this report does not contain any untrue statement of a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
• 1. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
• 1. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  2. (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
  3. (b) Designed such internal control over financial reporting, or caused such internal over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
  4. (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the period covered by this report based on such evaluation; and
  5. (d) Disclosed in this report any change in the registrant's internal control over financial reporting the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal reporting; and
• 1. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's audit committee of the registrant's board of directors (or persons performing the equivalent functions):
  2. (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
  3. (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 16, 2021

/s/ Nathan D. DeBacker

Nathan D. DeBacker Chief Financial Officer

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), the undersigned officer of CIM Commercial Trust Corporation (the "Company"), hereby certifies that the Company's Annual Report on Form 10-K for the year ended December 31, 2020 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 16, 2021

/s/ David Thompson Name: David Thompson Title: Chief Executive Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) and is not being filed as part of the Report or as a separate disclosure document.

-

7457\$0661!(&6,10 1)6+(!\$4%\$0(59.(:&61)? ?#!!(&6,10 6+(70'(45,*0('1)),&(41) 1//(4&,\$."475614214\$6,106+(-1/2\$0:-+(4(%:&(46,),(56+\$66+(1/2\$0:5007\$. (21461014/ )146+(:(\$4 (0'('(&(/%(4
 6+(- (2146-)7..:&1/2.,(58,6+6+(4(37,4(/(0651)!(&6,10
\$14'\$5\$22.,&\$%.(1)6+( !(&74,6,(59&+\$0*(&61)
\$0'6+\$66+(,0)14/\$6,10&106\$,0(',06+( (2146)\$,4.:24(5(065,0\$../\$6(4,\$.4(52(&656+( ),0\$0&,\$.&10',6,10\$0'4(57.651)12(4\$6,1051)6+(1/2\$0:

\$6('\$4&+

5 \$6+\$0(\$&-(4 \$/( \$6+\$0(\$&-(4 ",6.( -

"+()14(*1,0*&(46,),&\$6,10,5%(,0*)740,5+('51.(.:27457\$0661!(&6,10 1)6+(!\$4%\$0(59.(:&61)? #!!(&6,10 \$0',5016%(,0*),.('\$52\$461)6+( (214614\$5\$5(2\$4\$6(',5&.1574('1&7/(06