$11$/(6©6HUKLVWQDW©©© '(/21$É,+=$92'29,1'58É7(9$77,9,7š'(,12675,,67,787,('(//(12675(62&,(7š$&7,9,7,(6%<285,167,787,216$1'$662&,$7,216Ÿ  '(/21$Æ,+=$92'29,1'58Æ7(9 $77,9,7™'(,12675,,67,787,('(//( 12675(62&,(7™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¤V VXUIDFH )RVVLO UHFRUGV LQGLFDWH D WHQXUH RIRYHUPLOOLRQ\HDUVDQGKXQGUHGVRIVSHFLHVDWRU QHDU WKH WRS RI WLGDO HVWXDULQH QHULWLF EHQWKLF DQGSH ODJLFHQYLURQPHQWV7KHVHRIWHQPDOLJQHGFUHDWXUHVUHS UHVHQW WKLV SODQHW¤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¤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©6HUKLVWQDW©©© '(/21$É,+=$92'29,1'58É7(9$77,9,7š'(,12675,,67,787,('(//(12675(62&,(7š$&7,9,7,(6%<285,167,787,216$1'$662&,$7,216Ÿ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ËQLFL )RWR$'H0DGGDOHQD  $OHVVDQGUR'H0DGGDOHQD6HDQ9DQ6RPPHUDQ :ROIJDQJ/HDQGHU $11$/(6©6HUKLVWQDW©©© 2&(1(,13252à,/$5(&(16,21,(5(/$=,21,5(9,(:6$1'5(32576Ÿ