Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
19057_ Pepsi Bottling_LMC New Bern Holdings_LURU21
&ŽƌŵƌĞǀŝƐĞĚ͗ϴͲϭͲϮϬϭϲ 1&%52:1),(/'6 /$1'86(5(675,&7,216³/85´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³'(4 V´SULRUZULWWHQDSSURYDORWKHUFRPPHUFLDOXVHV )RUSXUSRVHVRIWKLVUHVWULFWLRQWKHIROORZLQJGHILQLWLRQVDSSO\ D³+LJK'HQVLW\5HVLGHQWLDO´UHIHUVWRSHUPDQHQWGZHOOLQJVZKHUHUHVLGHQWLDOXQLWV DUHDWWDFKHGWRHDFKRWKHUZLWKFRPPRQZDOOVVXFKDVFRQGRPLQLDDSDUWPHQWV JURXS KRPHV GRUPLWRULHV RU ERDUGLQJ KRXVHV DQG DQ\ SURSHUW\ RXWVLGH WKH GZHOOLQJVWUXFWXUHVLVXVDEOHE\DOOUHVLGHQWVDQGQRWSULYDWHO\RZQHGDVSDUWRID SDUWLFXODU XQLW DQG PD\ LQFOXGH UHODWHG DPHQLWLHV VXFK DV SRROV FOXEKRXVHV FRXUW\DUGV FRPPRQ VHDWLQJ DQG JDWKHULQJ DUHDV UHFUHDWLRQ DUHDV DQG SDUNLQJ JDUDJHV E³5HWDLO´UHIHUVWRWKHVDOHRIJRRGVVHUYLFHVSURGXFWVRUPHUFKDQGLVHGLUHFWO\WR WKH FRQVXPHU RU EXVLQHVVHV DQG LQFOXGHV VKRZURRPV SHUVRQDO VHUYLFH HQWHUWDLQPHQWDQGWKHVDOHVRIIRRGDQGEHYHUDJHSURGXFWV F³5HVWDXUDQW´UHIHUVWRDFRPPHUFLDOEXVLQHVVHVWDEOLVKPHQWWKDWSUHSDUHVDQGVHUYHV IRRGDQGEHYHUDJHVWRSDWURQVLQFOXGLQJRXWGRRUGLQLQJ G³2IILFH´UHIHUVWRWKHUHQGHULQJRIEXVLQHVVRUSURIHVVLRQDOVHUYLFHVLQFOXGLQJ ILQDQFLDOVHUYLFHV H³(QWHUWDLQPHQW´ UHIHUV WR SULYDWH SXEOLF DQG FRPPXQLW\ DFWLYLWLHV VXFK DV IHVWLYDOVWKHDWHUPXVLFDOHYHQWVRUVKRZVZKLFKPD\LQFOXGHIRRGDQGEHYHUDJH VHUYLFH I³5HFUHDWLRQ´UHIHUVWRLQGRRUDQGRXWGRRUH[HUFLVHUHODWHGSK\VLFDOO\IRFXVHGRU OHLVXUHUHODWHGDFWLYLWLHVZKHWKHUDFWLYHRUSDVVLYHDQGWKHIDFLOLWLHVIRUVDPH LQFOXGLQJEXWQRWOLPLWHGWRDERYHJURXQGVZLPPLQJRUZDGLQJSRROVRULQJURXQG VZLPPLQJRUZDGLQJSRROVWKDWDUHFRQVWUXFWHGZLWKLQFOHDQLPSRUWHGILOOPDWHULDO FOXEKRXVHVRSHQVSDFHZDONLQJSDWKVGRJUXQVDQGSLFQLFDQGSXEOLFJDWKHULQJ DUHDV 3HSVL%RWWOLQJ/858SGDWH J³2SHQ6SDFH´UHIHUVWRODQGPDLQWDLQHGLQDQDWXUDORUODQGVFDSHGVWDWHDQGXVHG IRUQDWXUDOUHVRXUFHSURWHFWLRQEXIIHUVJUHHQZD\VDQGRUGHWHQWLRQIDFLOLWLHVIRU VWRUPZDWHUDVZHOODVSXEOLFSULYDWHRUFRPPXQLW\HYHQWV K³3DUNLQJ´UHIHUVWRWKHWHPSRUDU\DFFRPPRGDWLRQRIPRWRUYHKLFOHVLQDQDUHD GHVLJQHGIRUVDPH L³&RPPHUFLDO´UHIHUVWRDQHQWHUSULVHFDUULHGRQIRUSURILWE\WKHRZQHUOHVVHHRU OLFHQVHH M³&RXUW\DUG´UHIHUVWRDODQGVFDSHGRUKDUGVFDSHGDUHDIRUUHVLGHQWV XVHIRUOHLVXUH DFWLYLWLHV$Q\VXFKIHDWXUHVKDOOQRWGLVWXUEQDWLYHVRLODWWKH%URZQILHOGV3URSHUW\ XQOHVV LQ DFFRUGDQFH ZLWK D '(4DSSURYHG (QYLURQPHQWDO 0DQDJHPHQW 3ODQ UHTXLUHGE\/851REHORZ N³'RJ5XQ´UHIHUVWRDQHQFORVHGDUHDGHVLJQHGWRDOORZIUHHGRPRIPRYHPHQWDQG DSOD\DUHDIRUUHVLGHQWV GRJV$Q\VXFKIHDWXUHVKDOOQRWGLVWXUEQDWLYHVRLODWWKH %URZQILHOGV3URSHUW\XQOHVVLQDFFRUGDQFHZLWKD'(4DSSURYHG(QYLURQPHQWDO 0DQDJHPHQW3ODQUHTXLUHGE\/DQG8VH5HVWULFWLRQ1REHORZā O³7UDQVLW´ UHIHUV WR DQ\ XVH IRU D SXEOLF WUDQVSRUWDWLRQ V\VWHPDQG QHWZRUN LQFOXGLQJZLWKRXWOLPLWDWLRQSHGHVWULDQDQGELF\FOHWUDLOVDQGIDFLOLWLHVWKDWPD\ EHH[SDQGHGRUPRGLILHGIURPWLPHWRWLPHLQFOXGLQJWKH/<1;RSHUDWHGE\WKH &LW\DQGWKHIDFLOLWLHVLQFLGHQWRUQHFHVVDU\IRUWKHVDIHFRQYHQLHQWHIIHFWLYHDQG HIILFLHQW FRQVWUXFWLRQ RSHUDWLRQ PDLQWHQDQFH UHSDLU DQG UHSODFHPHQW RI VXFK V\VWHPLQFOXGLQJSODWIRUPVVKHOWHUVZDLWLQJDUHDVZDONZD\VRIILFHVYHQGRU NLRVNVDQGRWKHUVXFKLPSURYHPHQWV ܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KH%URZQILHOGVSURSHUW\FRQVLVWVRIDSSUR[LPDWHO\DFUHVRIODQG0HFNOHQEXUJ &RXQW\3DUFHO,'1RORFDWHGDW1HZ%HUQ6WUHHWLQ&KDUORWWH1&&RQVWUXFWLRQ IRUWKHSURSRVHGPL[HGFRPPHUFLDODQGUHVLGHQWLDOKDVEHHQFRPSOHWHGZLWKWKHH[FHSWLRQRI IXWXUHURDGLPSURYHPHQWVWKDWZLOOEHFRPSOHWHZKHQ&KDUORWWH:DWHUUHSODFHVDZDWHUOLQHLQ 6RXWK%RXOHYDUG7KHVWDUWGDWHIRUWKLVZRUNKDV\HWWREHGHWHUPLQHG /853K\VLFDOUHGHYHORSPHQWRIWKH%URZQILHOGV3URSHUW\PD\QRWRFFXURWKHUWKDQ LQDFFRUGDVGHWHUPLQHGE\'(4ZLWKDQ(QYLURQPHQWDO0DQDJHPHQW3ODQDSSURYHGLQZULWLQJ E\ '(4 LQ DGYDQFH DQG UHYLVHG WR '(4 V ZULWWHQ VDWLVIDFWLRQ SULRU WR HDFK VXEVHTXHQW UHGHYHORSPHQWSKDVHWKDWLVFRQVLVWHQWZLWKDOOWKHRWKHUODQGXVHUHVWULFWLRQVDQGGHVFULEHV UHGHYHORSPHQWDFWLYLWLHVDWWKH%URZQILHOGV3URSHUW\WKHWLPLQJRIUHGHYHORSPHQWSKDVHVDQG DGGUHVVHVKHDOWKVDIHW\DQGHQYLURQPHQWDOLVVXHVWKDWPD\DULVHIURPXVHRIWKH%URZQILHOGV 3URSHUW\GXULQJFRQVWUXFWLRQRUUHGHYHORSPHQWLQDQ\RWKHUIRUPLQFOXGLQJZLWKRXWOLPLWDWLRQ DVRLODQGZDWHUPDQDJHPHQWLVVXHVLQFOXGLQJZLWKRXWOLPLWDWLRQWKRVHUHVXOWLQJ IURPFRQWDPLQDWLRQLGHQWLILHGLQWKH(QYLURQPHQWDO5HSRUWV ELVVXHVUHODWHGWRSRWHQWLDOVRXUFHVRIFRQWDPLQDWLRQUHIHUHQFHGLQSDUDJUDSKRIWKH %URZQILHOGV$JUHHPHQW³$JUHHPHQW´DWWDFKHGDV([KLELW$WRWKH1RWLFHRI %URZQILHOGV3URSHUW\³1RWLFH´ FFRQWLQJHQF\SODQVIRUDGGUHVVLQJLQFOXGLQJZLWKRXWOLPLWDWLRQWKHWHVWLQJRIVRLO DQG JURXQGZDWHU QHZO\ GLVFRYHUHG SRWHQWLDO VRXUFHV RI HQYLURQPHQWDO 3HSVL%RWWOLQJ/858SGDWH FRQWDPLQDWLRQHJ867VWDQNVGUXPVVHSWLFGUDLQILHOGVRLOZDWHUVHSDUDWRUV VRLOFRQWDPLQDWLRQDQG GSODQVIRUWKHSURSHUFKDUDFWHUL]DWLRQRIDQGDVQHFHVVDU\GLVSRVDORIFRQWDPLQDWHG VRLOVH[FDYDWHGGXULQJUHGHYHORSPHQW ܈,QFRPSOLDQFH ܆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܈,QFRPSOLDQFH ܆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܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KHIRUPHUVWUXFWXUHVZHUHGHPROLVKHGLQFRPSOLDQFHZLWK/85UHTXLUHPHQWV 3HSVL%RWWOLQJ/858SGDWH /85*URXQGZDWHUDWWKH%URZQILHOGV3URSHUW\PD\QRWEHXVHGIRUDQ\SXUSRVH ZLWKRXWWKHSULRUZULWWHQDSSURYDORI'(4 ܈,QFRPSOLDQFH ܆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܈,QFRPSOLDQFH ܆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܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV)LQDOJUDGHVRLODVVHVVPHQWDFWLYLWLHVIRUWKHILUVWFRPSOHWLRQSKDVHRIWKH UHGHYHORSPHQWKDVEHHQFRPSOHWHGDQGUHFHLYHGRFFXSDQF\DSSURYDOLQD3KDVH,±)LQDO*UDGH 6DPSOLQJ$SSURYDOOHWWHULVVXHGE\'(4RQ6HSWHPEHU$6HFRQG2FFXSDQF\3KDVH±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܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KHYDSRUPLWLJDWLRQV\VWHPIRUWKHSURSRVHGEXLOGLQJDWWKH%URZQILHOGVSURSHUW\ ZDVLQVWDOOHGLQDFFRUGDQFHZLWKWKH'(4%URZQILHOGVDSSURYHG9DSRU0LWLJDWLRQ3ODQ 5HYLVLRQSUHSDUHGE\+DUW +LFNPDQ3&RQ6HSWHPEHU$906,QVWDOODWLRQ &RPSOHWLRQ5HSRUW5HYLVLRQDQGD906,QVWDOODWLRQ&RPSOHWLRQ5HSRUW±$GGHQGXP 5HYLVLRQZHUHVXEPLWWHGWR'(4RQ-XO\ /851RQHRIWKHFRQWDPLQDQWVNQRZQWREHSUHVHQWLQWKHHQYLURQPHQWDOPHGLDDWWKH %URZQILHOGV3URSHUW\LQFOXGLQJWKRVHDSSHDULQJLQSDUDJUDSKRIWKH$JUHHPHQWPD\EHXVHGRU VWRUHGDWWKH%URZQILHOGV3URSHUW\ZLWKRXWWKHSULRUZULWWHQDSSURYDORI'(4H[FHSWLQde minimis DPRXQWVIRUFOHDQLQJDQGRWKHUURXWLQHKRXVHNHHSLQJDFWLYLWLHVDQGDVFRQVWLWXHQWVRIIXHOV OXEULFDQWVDQGRLOVLQHPHUJHQF\JHQHUDWRUVPDFKLQHU\HTXLSPHQWDQGYHKLFOHVLQRQERDUGWDQNV LQWHJUDOWRVDLGHTXLSPHQWRULQIODPPDEOHOLTXLGVWRUDJHFRQWDLQHUVWRWDOLQJQRPRUHWKDQ JDOORQV ܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KH2ZQHULVQRWDZDUHRIWKHXVHRUVWRUDJHRISURGXFWVFRQWDLQLQJFRPSRXQGV OLVWHGLQSDUDJUDSKRIWKH$JUHHPHQWDWWKH%URZQILHOGVSURSHUW\ 3HSVL%RWWOLQJ/858SGDWH /857KH%URZQILHOGV3URSHUW\PD\QRWEHXVHGIRUFKLOGFDUHDGXOWFDUHFHQWHUVRU VFKRROVZLWKRXWWKHSULRUZULWWHQDSSURYDORI'(4 ܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KH%URZQILHOGVSURSHUW\LVQRWXVHGIRUDFKLOGFDUHFHQWHUDGXOWFDUHFHQWHURUD VFKRRO /857KHRZQHURIDQ\SRUWLRQRIWKH%URZQILHOGV3URSHUW\ZKHUHDQ\VXEVHTXHQWO\ LQVWDOOHG'(4DSSURYHGPRQLWRULQJZHOOLVGDPDJHGVKDOOEHUHVSRQVLEOHIRUUHSDLURIDQ\VXFK ZHOOVWR'(4 VZULWWHQVDWLVIDFWLRQDQGZLWKLQDWLPHSHULRGDFFHSWDEOHWR'(4XQOHVVFRPSOLDQFH ZLWKWKLV/85LVZDLYHGLQZULWLQJE\'(4LQDGYDQFH ܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KHUHDUHQRNQRZQJURXQGZDWHUPRQLWRULQJZHOOVSUHVHQWRQWKH%URZQILHOGV SURSHUW\ /851HLWKHU '(4 QRU DQ\ SDUW\ FRQGXFWLQJ HQYLURQPHQWDO DVVHVVPHQWRU UHPHGLDWLRQDWWKH%URZQILHOGV3URSHUW\DWWKHGLUHFWLRQRIRUSXUVXDQWWRDSHUPLWRUGHURU DJUHHPHQWLVVXHGRUHQWHUHGLQWRE\'(4PD\EHGHQLHGDFFHVVWRWKH%URZQILHOGV3URSHUW\IRU SXUSRVHVRIFRQGXFWLQJVXFKDVVHVVPHQWRUUHPHGLDWLRQZKLFKLVWREHFRQGXFWHGXVLQJUHDVRQDEOH HIIRUWVWRPLQLPL]HLQWHUIHUHQFHZLWKDXWKRUL]HGXVHVRIWKH%URZQILHOGV3URSHUW\ ܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNV7KH2ZQHULVQRWDZDUHRIDQLQVWDQFHLQZKLFK'(4RULWVFRQWUDFWRUVKDYHEHHQ GHQLHGDFFHVVWRWKH%URZQILHOGVSURSHUW\IRUDQ\UHDVRQ /85$Q\GHHGRURWKHULQVWUXPHQWFRQYH\LQJDQLQWHUHVWLQWKH%URZQILHOGV3URSHUW\ VKDOOFRQWDLQWKHIROORZLQJQRWLFH³7KH3URSHUW\ZKLFKLVWKHVXEMHFWRIWKLVLQVWUXPHQWLVVXEMHFW WR WKH %URZQILHOGV $JUHHPHQW DWWDFKHGDV ([KLELW $ WR WKH 1RWLFH RI %URZQILHOGV 3URSHUW\ UHFRUGHGLQWKH0HFNOHQEXUJ&RXQW\ODQGUHFRUGV%RRN3DJH´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܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB /85'XULQJ-DQXDU\RIHDFK\HDUDIWHUWKH\HDULQZKLFKWKLV1RWLFHRI%URZQILHOGV 3URSHUW\LVUHFRUGHGWKHRZQHURIDQ\SDUWRIWKH%URZQILHOGV3URSHUW\DVRI-DQXDU\VWRIWKDW \HDUVKDOOVXEPLWDQRWDUL]HG/DQG8VH5HVWULFWLRQV8SGDWH³/858´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܈,QFRPSOLDQFH ܆2XWRIFRPSOLDQFH 5HPDUNVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWDUL]HGVLJQLQJDQGVXEPLWWDORIWKLV/DQG8VH5HVWULFWLRQV8SGDWHFRQVWLWXWHVFHUWLILFDWLRQWKDW WKH1RWLFHRI%URZQILHOGV3URSHUW\UHPDLQVUHFRUGHGDWWKH0HFNOHQEXUJ&RXQW\5HJLVWHURI 'HHGVRIILFHDQGWKDWWKH/DQG8VH5HVWULFWLRQVDUHEHLQJFRPSOLHGZLWK 7KLV/DQG8VH5HVWULFWLRQV8SGDWHLVFHUWLILHGE\/0&1HZ%HUQ+ROGLQJV/3D'HODZDUH OLPLWHGSDUWQHUVKLS%\/HQQDU0XOWLIDPLO\%7&9HQWXUH&36XEVLGLDU\//&D'HODZDUH OLPLWHGOLDELOLW\FRPSDQ\LWV*HQHUDO3DUWQHU%\/HQQDU0XOWLIDPLO\%7&9HQWXUH0DQJHU//& D'HODZDUHOLPLWHGOLDELOLW\FRPSDQ\LWV0DQDJHURZQHURIDWOHDVWSDUWRIWKH%URZQILHOGV 3URSHUW\RQWKLVBBBGD\RI-DQXDU\ 1DPHW\SHGRUSULQWHGRISDUW\PDNLQJFHUWLILFDWLRQ/0&1HZ%HUQ+ROGLQJV/3 >1RWHDGGLWLRQDOHQWLWLHVRURZQHUVPD\EHDGGHGLIDSSURSULDWHLHPXOWLSOHPDQDJLQJPHPEHUVHQWLWLHV@ /0&1HZ%HUQ+ROGLQJV/3D'HODZDUHOLPLWHG SDUWQHUVKLS%\/HQQDU0XOWLIDPLO\%7&9HQWXUH&36XEVLGLDU\//&D'HODZDUHOLPLWHG OLDELOLW\FRPSDQ\LWV*HQHUDO3DUWQHU%\/HQQDU0XOWLIDPLO\%7&9HQWXUH0DQJHU//&D 'HODZDUHOLPLWHGOLDELOLW\FRPSDQ\LWV0DQDJHU-HIIUH\+DUULV3UHVLGHQW %\ BBBBBBBBBBBBBBBBBBBBBBBBBBVLJQDWXUH 1DPHW\SHGRUSULQWHG-HIIUH\+DUULV 7LWOHW\SHGRUSULQWHG3UHVLGHQW 1257+&$52/,1$ 0(&./(1%85*&2817< , FHUWLI\ WKDW WKH IROORZLQJ SHUVRQV SHUVRQDOO\ DSSHDUHG EHIRUH PH WKLV GD\ HDFK DFNQRZOHGJLQJWRPHWKDWKHRUVKHYROXQWDULO\VLJQHGWKHIRUHJRLQJGRFXPHQWIRUWKHSXUSRVH VWDWHGWKHUHLQDQGLQWKHFDSDFLW\LQGLFDWHG-HIIUH\+DUULV3UHVLGHQW 'DWHBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 2IILFLDO6LJQDWXUHRI1RWDU\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 1RWDU\¶VSULQWHGRUW\SHGQDPH1RWDU\3XEOLF 2IILFLDO6HDO 0\FRPPLVVLRQH[SLUHVBBBBBBBBBBBBBBBBB