0000950123-11-004160.txt : 20110120 0000950123-11-004160.hdr.sgml : 20110120 20110120165531 ACCESSION NUMBER: 0000950123-11-004160 CONFORMED SUBMISSION TYPE: S-4/A PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20110120 DATE AS OF CHANGE: 20110120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIGHAM EXPLORATION CO CENTRAL INDEX KEY: 0001034755 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752692967 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-4/A SEC ACT: 1933 Act SEC FILE NUMBER: 333-171187 FILM NUMBER: 11539176 BUSINESS ADDRESS: STREET 1: 6300 BRIDGE POINT PARKWAY STREET 2: BLDG 2 SUITE 500 CITY: AUSTIN STATE: TX ZIP: 78730 BUSINESS PHONE: 5124273300 MAIL ADDRESS: STREET 1: 6300 BRIDGE POINT PARKWAY STREET 2: BLDG 2 SUITE 500 CITY: AUSTIN STATE: TX ZIP: 78730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIGHAM INC CENTRAL INDEX KEY: 0001068003 IRS NUMBER: 752354099 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-4/A SEC ACT: 1933 Act SEC FILE NUMBER: 333-171187-01 FILM NUMBER: 11539178 BUSINESS ADDRESS: STREET 1: 6300 BRIDGE POINT PKWY STREET 2: BLDG 2 STE 500 CITY: AUSTIN STATE: TX ZIP: 78730 BUSINESS PHONE: 5124273300 MAIL ADDRESS: STREET 1: 6300 BRIDGE POINT PKWY STREET 2: BLDG 2 STE 500 CITY: AUSTIN STATE: TX ZIP: 78730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIGHAM OIL & GAS LP CENTRAL INDEX KEY: 0001068004 IRS NUMBER: 752354099 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-4/A SEC ACT: 1933 Act SEC FILE NUMBER: 333-171187-02 FILM NUMBER: 11539177 BUSINESS ADDRESS: STREET 1: 6300 BRIDGE POINT PKWY STREET 2: BLDG 2 STE 500 CITY: AUSTIN STATE: TX ZIP: 78730 BUSINESS PHONE: 5124273300 MAIL ADDRESS: STREET 1: 6300 BRIDGE POINT PKWY STREET 2: BLDG 2 STE 500 CITY: AUSTIN STATE: TX ZIP: 78730 S-4/A 1 h78318a1sv4za.htm S-4/A sv4za
As filed with the Securities and Exchange Commission on January 20, 2011
Registration No. 333-171187
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
 
Amendment No. 1
to
Form S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
 
 
 
 
Brigham Exploration Company
For Co-Registrants, See “Table of Co-Registrants.”
(Exact name of registrant as specified in its charter)
 
 
 
 
         
Delaware
  1311   75-2692967
(State or other jurisdiction of
incorporation or organization)
  (Primary Standard Industrial
Classification Number.)
  (I.R.S. Employer
Identification No.)
 
     
6300 Bridge Point Parkway
Building Two, Suite 500
Austin, Texas 78730
(512) 427-3300
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
  Ben M. Brigham
6300 Bridge Point Parkway
Building Two, Suite 500
Austin, Texas 78730
(512) 427-3300
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
 
 
 
 
Copies to:
 
Joe Dannenmaier
Wesley P. Williams
Thompson & Knight LLP
One Arts Plaza
1722 Routh Street, Suite 1500
Dallas, TX 75201-2533
 
 
 
 
Approximate date of commencement of proposed sale to the public:  As soon as practicable after the effective date of this registration statement.
 
If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box.  o
 
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o
 
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
             
Large accelerated filer o
  Accelerated filer þ   Non-accelerated filer o
(Do not check if a smaller reporting company)
  Smaller Reporting company o
 
If applicable, place an þ in the box to designate the appropriate rule provision relied upon in conducting this transaction:
 
Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer)  o
 
Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender Offer)  o
 
The Registrants hereby amend this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrants shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to such said Section 8(a), may determine.
 
TABLE OF CO-REGISTRANTS
 
Each of the following subsidiaries and each other subsidiary of Brigham Exploration Company that becomes a guarantor of certain of the securities registered hereby, is hereby deemed to be a registrant.
 
                 
    Jurisdiction of
  I.R.S. Employer
Exact Name as Specified
  Incorporation
  Identification
in their Charters
  or Organization   Number
 
Brigham Oil & Gas, L.P. 
    Delaware       75-2429186  
Brigham, Inc. 
    Nevada       75-2354099  
 
The address and telephone number of the principal executive offices of Brigham, Inc. and Brigham Oil & Gas, L.P. is 6300 Bridge Point Parkway, Building Two, Suite 500, Austin, Texas 78730, (512) 427-3300 and the agent for service at such address is Ben M. Brigham.
 


 

 
EXPLANATORY NOTE
 
This Amendment No. 1 to the Registration Statement on Form S-4 of Brigham Exploration Company (File No. 333-171187) is being filed solely for the purpose of amending Exhibits 5.1, 23.1, 99.1, 99.3 and 99.4 of the Registration Statement. Accordingly, this Amendment No. 1 consists only of the facing page, this explanatory note, Part II to the Registration Statement and Exhibits 5.1, 23.1, 99.1, 99.3 and 99.4. No changes are being made to Part I of the Registration Statement by this filing, and therefore it has been omitted.


 

PART II
 
INFORMATION NOT REQUIRED IN PROSPECTUS
 
Item 20.   Indemnification of Directors and Officers.
 
(a) Brigham Exploration Company
 
In accordance with Section 102(b)(7) of the General Corporation Law of the State of Delaware, our Certificate of Incorporation includes a provision that, to the fullest extent permitted by law, eliminates the personal liability of members of our Board of Directors to us or our stockholders for monetary damages for breach of fiduciary duty as a director. Such provision does not eliminate or limit the liability of a director (1) for any breach of a director’s duty of loyalty to us or our stockholders, (2) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of a law, (3) for paying an unlawful dividend or approving an illegal stock repurchase (as provided in Section 174 of the Delaware General Corporation Law) or (4) for any transaction from which the director derived an improper personal benefit.
 
Under Section 145 of the Delaware General Corporation Law, we have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action by or in the right of the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of any corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding. The power to indemnify applies only if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe the person’s conduct was unlawful.
 
In the case of an action by or in the right of the corporation, no indemnification may be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to us unless and only to the extent that the court of chancery or the court in which such action or suit was brought shall determine that despite the adjudication of liability such person is fairly and reasonably entitled to indemnity for such expenses which the court shall deem proper.
 
Section 145 of the Delaware General Corporation Law further provides that to the extent one of our directors or officers has been successful in the defense of any action, suit or proceeding referred to above or in the defense of any claim, issue or matter therein, that person shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred in connection therewith.
 
We also have the power to purchase and maintain insurance on behalf of any person covering any liability incurred in that person’s capacity as a director, officer, employee or agent of the corporation, or arising out of that person’s status as such, whether or not we would have the power to indemnify against the liability.
 
The Certificate of Incorporation provides that we will indemnify our officers and directors and former officers and directors against any expenses, judgments or settlement payments sustained or paid by such persons as a result of having acted as one of our officers or directors, or, at our request, as an officer, director, agent or employee of another business entity. The Certificate of Incorporation further provides that we may, by action of our Board of Directors, provide indemnification to our employees and agents, individually or as a group, with the same scope and effect as the indemnification of directors and officers.
 
The Bylaws provide that we will indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action by or in the right of the corporation), by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with the action, suit or proceeding if he acted in good faith and in a manner which he reasonably believed to


II-1


 

be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause or belief his conduct was unlawful.
 
Each Indemnity Agreement between us and our executive officers provides for the indemnification in certain instances against liability and expenses incurred in connection with proceedings brought by or in the right of the corporation or by third parties by reason of a person serving as one of our officers or directors.
 
(b) Brigham, Inc.
 
Pursuant to the provisions of Section 78.7502 of the Nevada General Corporation Law, Brigham, Inc. has authority to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with the action, suit or proceeding if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause or belief his conduct was unlawful.
 
Under the Nevada General Corporation Law, Brigham, Inc. also has the authority to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation, to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust of other enterprise against expenses including amounts paid in settlement and attorneys’ fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. No indemnification shall be made, however, for any claim, issue or matter as to which a person has been adjudged by a court of competent jurisdiction to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court determines that in view of all the circumstances, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.
 
Section 78.751 of the Nevada General Corporation Law requires Nevada corporations to obtain a determination that any discretionary indemnification is proper under the circumstances. Such a determination must be made by the corporation’s stockholders; its Board of Directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding; or under certain circumstances, by independent legal counsel.
 
Brigham, Inc. also has the power to purchase and maintain insurance on behalf of any person covering any liability incurred in that person’s capacity as a director, officer, employee or agent of the corporation, or arising out of that person’s status as such, whether or not we would have the power to indemnify against the liability.
 
To the extent a director or officer has been successful in the defense of any action, suit or proceeding referred to above or in the defense of any claim, issue or matter therein, that person shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred in connection therewith.
 
In addition, unless otherwise provided in the Articles of Incorporation, Section 78.138 of the Nevada General Corporation Law eliminates the personal liability of directors and officers, to the corporation or stockholders, for damages resulting from their breach of fiduciary duties, unless such breach involved intentional misconduct, fraud or a knowing violation of the law. The Articles of Incorporation of Brigham, Inc. do not provide otherwise.
 
The Articles of Incorporation of Brigham, Inc. provide that Brigham, Inc. will indemnify its officers, directors, employees and agents to the fullest extent permitted by Nevada law.


II-2


 

The Bylaws of Brigham, Inc. provide that Brigham, Inc. can indemnify its officers and directors and former officers and directors against any expenses, judgments or settlement payments sustained or paid by such persons as a result of having acted as one of its officers or directors, or, at its request, as an officer, director, agent or employee of another business entity. The Bylaws also further provide that Brigham, Inc. may provide indemnification to its employees and agents, individually or as a group, with the same scope and effect as the indemnification of directors and officers.
 
(c) Brigham Oil & Gas, L.P.
 
Section 17-108 of the Delaware Revised Uniform Limited Partnership Act, permits Brigham Oil & Gas, L.P. to indemnify and hold harmless any partner or other person from and against any and all claims and demands whatsoever.
 
The foregoing summaries are necessarily subject to the complete text of the statute, articles of incorporation, bylaws, agreements and insurance policies referred to above and are qualified in their entirety by reference thereto.
 
Item 21.   Exhibits and Financial Statement Schedules.
 
The exhibits listed in the accompanying Index to Exhibits are filed or incorporated by reference as part of this Registration Statement.
 
Item 22.   Undertakings.
 
(a) The undersigned registrants hereby undertake:
 
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
 
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
 
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
 
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
 
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
 
(5) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, if such registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no


II-3


 

statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
 
(6) That, for the purpose of determining liability of the registrants under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: the undersigned registrants undertake that in a primary offering of securities of the undersigned registrants pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrants will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
 
i. Any preliminary prospectus or prospectus of the undersigned registrants relating to the offering required to be filed pursuant to Rule 424;
 
ii. Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrants;
 
iii. The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrants or their securities provided by or on behalf of the undersigned registrants; and
 
iv. Any other communication that is an offer in the offering made by the undersigned registrants to the purchaser.
 
(b) The undersigned registrants hereby undertake that, for purposes of determining any liability under the Securities Act of 1933, each filing of each registrant’s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 
(e) The undersigned registrants hereby undertake to deliver or cause to be delivered with the prospectus, to each person to whom the prospectus is sent or given, the latest annual report, to security holders that is incorporated by reference in the prospectus and furnished pursuant to and meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities Exchange Act of 1934; and, where interim financial information required to be presented by Article 3 of Regulation S-X is not set forth in the prospectus, to deliver, or cause to be delivered to each person to whom the prospectus is sent or given, the latest quarterly report that is specifically incorporated by reference in the prospectus to provide such interim financial information.
 
(h) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrants pursuant to the foregoing provisions, or otherwise, the registrants have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrants of expenses incurred or paid by a director, officer, or controlling person of the registrants in the successful defense of any action, suit, or proceeding) is asserted by such director, officer, or controlling person in connection with the securities being registered, the registrants will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the act, and will be governed by the final adjudication of such issue.


II-4


 

(j) The undersigned registrants hereby undertake to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act of 1939 in accordance with the rules and regulations prescribed by the Commission under Section 305(b)(2) of the Trust Indenture Act of 1939.
 
The undersigned registrants hereby undertake to respond to requests for information that is incorporated by reference into the prospectus pursuant to Item 4, 10(b), 11, or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.
 
The undersigned registrants hereby undertake to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.


II-5


 

SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1933, Brigham Exploration Company, Brigham, Inc. and Brigham Oil & Gas, L.P. have duly caused this Amendment No. 1 to the Registration Statement to be signed on their behalf by the undersigned, thereunto duly authorized, in the City of Austin, State of Texas, on the 18th day of January, 2011.
 
BRIGHAM EXPLORATION COMPANY
 
  By: 
/s/  Eugene B. Shepherd, Jr.
Eugene B. Shepherd, Jr.
Chief Financial Officer
 
BRIGHAM, INC.
 
  By: 
/s/  Eugene B. Shepherd, Jr.
Eugene B. Shepherd, Jr.
Chief Financial Officer
 
BRIGHAM OIL & GAS, L.P.
 
  By:  BRIGHAM, INC.,
Its general partner
 
  By: 
/s/  Eugene B. Shepherd, Jr.
Eugene B. Shepherd, Jr.
Chief Financial Officer


 

 
Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by Eugene B. Shepherd, Jr. in the capacity and on the date indicated.
 
BRIGHAM EXPLORATION COMPANY
 
             
Signature
 
Title
 
Date
 
         
*

Ben M. Brigham
  Chief Executive Officer, President, Chairman of the Board and Director (Principal Executive Officer)   January 18, 2011
         
/s/  Eugene B. Shepherd, Jr.

Eugene B. Shepherd, Jr.
  Chief Financial Officer
(Principal Financial and Accounting Officer)
  January 18, 2011
         
*

David T. Brigham
  Director   January 18, 2011
         
*

Harold D. Carter
  Director   January 18, 2011
         
*

Stephen C. Hurley
  Director   January 18, 2011
         
*

Stephen P. Reynolds
  Director   January 18, 2011
         
*

Hobart A. Smith
  Director   January 18, 2011
         
*

Scott W. Tinker
  Director   January 18, 2011
 
BRIGHAM, INC., on behalf of itself and Brigham Oil & Gas, L.P. in its capacity as general partner of Brigham Oil & Gas, L.P.
 
             
Signature
 
Title
 
Date
 
         
*

Ben M Brigham
  President and Director
(Principal Executive Officer)
  January 18, 2011
         
/s/  Eugene B. Shepherd, Jr.

Eugene B. Shepherd, Jr.
  Executive Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
  January 18, 2011
         
*

David T. Brigham
  Executive Vice-President — Land and Administration and Director   January 18, 2011
             
*By:  
/s/  Eugene B. Shepherd, Jr.

Eugene B. Shepherd, Jr.
Attorney-in-fact
       


 

INDEX TO EXHIBITS
 
           
  4 .1     Indenture, dated September 27, 2010, among the Company, the Guarantors and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.17 to Brigham’s Current Report on Form 8-K filed October 1, 2010 and incorporated herein by reference)
  4 .2     Rule 144A 83/4% Senior Note due 2018 and Notation of Guarantee (filed as Exhibit 4.18 to Brigham’s Current Report on Form 8-K filed October 1, 2010 and incorporated herein by reference)
  4 .3     Regulation S 83/4% Senior Note due 2018 and Notation of Guarantee (filed as Exhibit 4.19 to Brigham’s Current Report on Form 8-K filed October 1, 2010 and incorporated herein by reference)
  4 .4     Registration Rights Agreement dated September 27, 2010, among the Company, the Guarantors and the Initial Purchasers (filed as Exhibit 4.20 to Brigham’s Current Report on Form 8-K filed October 1, 2010 and incorporated herein by reference)
  5 .1 *   Opinion of Thompson & Knight LLP
  12 .1 **   Statement regarding Ratio of Earnings to Fixed Charges
  23 .1 *   Consent of KPMG LLP
  23 .2 *   Consent of Thompson & Knight, LLP (contained within Exhibit 5.1 hereto)
  23 .3 **   Consent of Cawley Gillespie & Associates, Inc.
  24   **   Powers of Attorney
  25 .1 **   Statement of Eligibility of Trustee on Form T-1
  99 .1 *   Form of Letter of Transmittal
  99 .2 **   Form of Notice of Guaranteed Delivery
  99 .3 *   Form of Letter to DTC Participants
  99 .4 *   Form of Letter to Clients
 
 
* Filed herewith
 
** Previously filed with Form S-4 on December 15, 2010

EX-5.1 2 h78318a1exv5w1.htm EX-5.1 exv5w1
Exhibit 5.1
Thompson & Knight LLP
         
        AUSTIN
    ATTORNEYS AND COUNSELORS   DALLAS
        FORT WORTH
    ONE ARTS PLAZA   HOUSTON
    1722 ROUTH STREET SUITE 1500   NEW YORK
    DALLAS, TEXAS 75201-2533   —————
    (214) 969-1700   ALGIERS
    FAX (214) 969-1751   LONDON
    www.tklaw.com   MEXICO CITY
        MONTERREY
        PARIS
January 20, 2011
Brigham Exploration Company
6300 Bridge Point Parkway
Building Two, Suite 500
Austin, Texas 78730
Re: Registration Statement on Form S-4, File No. 333-171187
Ladies and Gentlemen:
     We have acted as special counsel for Brigham Exploration Company, a Delaware corporation (the “Company”), in connection with the Company’s offer (the “Exchange Offer”) to exchange its 8.750% Senior Notes due 2018 in the aggregate principal amount of $300,000,000 to be registered under the Securities Act of 1933 (the “Exchange Notes”) for any and all of its outstanding 8.750% Senior Notes due 2018 in the aggregate principal amount of $300,000,000 (the “Outstanding Notes”). The Outstanding Notes have been, and the Exchange Notes will be, issued pursuant to the Indenture dated as of September 27, 2010, as amended by the First Supplemental Indenture dated September 27, 2010 (together, the “Indenture”) among the Company, the subsidiary guarantors named therein (the “Subsidiary Guarantors” and, together with the Company, the “Relevant Parties”) and Wells Fargo Bank, N.A., as trustee (the “Trustee”). The Exchange Notes will be fully and unconditionally guaranteed pursuant to Article Ten of the Indenture (the “Subsidiary Guarantee,” and together with the Exchange Notes, the “Securities”) on a joint and several basis by the Subsidiary Guarantors, which are also listed as co-registrants in the Company’s registration statement on Form S-4 in respect of the Securities filed with the Securities and Exchange Commission (the “SEC”) for the registration of the Securities under the Securities Act of 1933, as amended (the “Securities Act”) (such registration statement, as amended at the time it becomes effective, being as the “Registration Statement”).
     In connection with this opinion letter, we have examined original counterparts or copies of original counterparts of the following documents:
  (a)   The Indenture (including the Subsidiary Guarantees contained therein).
 
  (b)   The form of the Exchange Notes.
 
  (c)   The Registration Statement.
The Indenture and the Exchange Notes are referred to herein as the “Transaction Documents”. We have also examined originals or copies of such other records of the Relevant Parties,

 


 

Brigham Exploration Company
January 20, 2011
Page 2
certificates of public officials and of officers or other representatives of the Relevant Parties and agreements and other documents as we have deemed necessary, subject to the assumptions set forth below, as a basis for the opinions expressed below.
     In rendering the opinions expressed below, we have assumed:
     (i) The genuineness of all signatures.
     (ii) The authenticity of the originals of the documents submitted to us.
     (iii) The conformity to authentic originals of any documents submitted to us as copies.
     (iv) As to matters of fact, representations and statements made in certificates of public officials and officers or other representatives of the Relevant Parties.
     (v) That the Indenture constitutes the valid, binding and enforceable obligations of the Trustee.
     (vi) That the execution, delivery and performance by each Relevant Party of the Transaction Documents to which it is a party do not:
     (A) except with respect to Applicable Laws, violate any law, rule or regulation applicable to it, or
     (B) result in any conflict with or breach of any agreement or document binding on it of which any holder of the Exchange Notes has knowledge, has received notice or has reason to know.

 


 

Brigham Exploration Company
January 20, 2011
Page 3
We have not independently established the validity of the foregoing assumptions.
     As used herein, “Applicable Laws” means the laws, rules and regulations of the States of New York, Delaware and Nevada.
     Based upon the foregoing, and subject to the qualifications and limitations herein set forth, we are of the opinion that:
     1. The Exchange Notes will, when they have been duly executed, authenticated, issued and delivered in accordance with the provisions of the Exchange Offer and the Indenture, constitute legal, valid and binding obligations of the Company, enforceable against it in accordance with the terms thereof.
     2. The Subsidiary Guarantee will, when the Indenture has been duly executed, authenticated, issued and delivered in accordance with the provisions of the Exchange Offer and the Indenture, constitute legal, valid and binding obligations of the Subsidiary Guarantors, enforceable against the Subsidiary Guarantors in accordance with its terms.
     The opinions set forth above are subject to the following qualifications and exceptions:
     (a) Our opinions are limited to Applicable Laws (including all applicable provisions of the constitution of each such jurisdiction and reported judicial decisions interpreting such laws), and we do not express any opinion herein concerning any other laws.
     (b) Our opinions are subject to bankruptcy, insolvency, fraudulent transfer, reorganization, receivership, moratorium or similar laws affecting the rights and remedies of creditors generally.
     (c) Our opinions are subject to general principles of equity exercisable in the discretion of a court (including without limitation obligations and standards of good faith, fair dealing, materiality and reasonableness and defenses relating to unconscionability or to impracticability or impossibility of performance).
     (d) We express no opinion with respect to any waiver of defenses by a Subsidiary Guarantor in the Subsidiary Guarantee.
     This opinion letter is limited to the matters expressly stated herein and is provided solely for purposes of complying with the requirements of the Securities Act, and no opinions may be inferred or implied beyond the matters expressly stated herein. The opinions expressed herein are rendered and speak only as of the date hereof and we specifically disclaim any responsibility to update such opinions subsequent to the date hereof or to advise you of subsequent developments affecting such opinions.

 


 

Brigham Exploration Company
January 20, 2011
Page 4
     We consent to the filing of this opinion with the SEC as Exhibit 5.1 to the Registration Statement and to the reference to us under the caption “Legal Matters” in the Prospectus forming a part of the Registration Statement, and in any amendment or supplement thereto. In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 and Section 11 of the Securities Act or the rules and regulations of the SEC promulgated thereunder, nor do we admit that we are experts with respect to any part of the Registration Statement within the meaning of the term “expert” as used in the Securities Act or the related rules and regulations of the SEC promulgated thereunder.
Very truly yours,
/s/ Thompson & Knight LLP
WPW/SMM
RHS

 

EX-23.1 3 h78318a1exv23w1.htm EX-23.1 exv23w1
Exhibit 23.1
(KPMG Logo)  
 
KPMG LLP
Suite 3100
717 North Harwood Street
Dallas, TX 75201-6585
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Brigham Exploration Company:
We consent to the use of our reports dated February 26, 2010 with respect to the consolidated balance sheets of Brigham Exploration Company and subsidiaries as of December 31, 2009 and 2008, and the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2009, and the effectiveness of internal control over financial reporting as of December 31, 2009, which appear in the December 31, 2009 annual report on Form 10-K of Brigham Exploration Company incorporated by reference herein and to the reference to our firm under the heading “Experts” in the prospectus.
(-s- KPMG LLP)
Dallas, Texas
January 18, 2011
KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of
KPMG International Cooperative (“KPMG International’’), a Swiss entity.

EX-99.1 4 h78318a1exv99w1.htm EX-99.1 exv99w1
 
Exhibit 99.1
 
LETTER OF TRANSMITTAL
BRIGHAM EXPLORATION COMPANY
Offer For Any And All Outstanding
8.750% Senior Notes Due 2018
In Exchange For
8.750% Senior Notes Due 2018
Which Have Been Registered Under The Securities Act of 1933
Pursuant to the Prospectus Dated          , 2010
 
THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON , 2010, UNLESS THE OFFER IS EXTENDED. TENDERS MAY BE WITHDRAWN PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
 
The Exchange Agent for the Exchange Offer is:
WELLS FARGO BANK, N.A.
 
         
Delivery by Registered
or Certified Mail:
  Facsimile Transmissions:
(Eligible Institutions Only)
  Overnight Delivery
or Regular Mail:
Wells Fargo Bank, N.A.Corporate Trust ServicesMAC N 9311-110625 Marquette AvenueMinneapolis, MN 55479  
(612) 667-9825To Confirm by Telephoneor for Information Call:
(612) 316-4305
 
Wells Fargo Bank, N.A.Corporate Trust ServicesMAC N 9311-110625 Marquette AvenueMinneapolis, MN 55479
 
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR TRANSMISSION OF THIS LETTER OF TRANSMITTAL VIA FACSIMILE TO A NUMBER OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.
 
The undersigned acknowledges that he or she has received the Prospectus, dated,          , 2010 (the “Prospectus”), of Brigham Exploration Company, a Delaware corporation (“BEXP”), and this Letter of Transmittal, which together constitute BEXP’s offer (the “Exchange Offer”) to exchange an aggregate principal amount of up to $300,000,000 of 8.750% Senior Notes due 2018, which have been registered under the Securities Act of 1933, as amended (the “Securities Act”) (the “Exchange Notes”) for a like principal amount of the issued and outstanding 8.750% Senior Notes due 2018 (the “Notes”) of BEXP from the holders thereof.
 
THE INSTRUCTIONS CONTAINED HEREIN SHOULD BE READ CAREFULLY BEFORE THIS LETTER OF TRANSMITTAL IS COMPLETED.
 
Capitalized terms used but not defined herein shall have the same meaning given them in the Prospectus.
 
This Letter of Transmittal is to be completed by the holders of Notes either if Notes are to be forwarded herewith or if tenders of Notes are to be made by book-entry transfer to an account maintained by Wells Fargo Bank, N.A. (the “Exchange Agent”) at The Depository Trust Company (the “Book-Entry Transfer Facility” or “DTC”) pursuant to the procedures set forth in the “The Exchange Offer — Exchange Offer Procedures” in the Prospectus.
 
Holders of notes whose certificates (the “Certificates”) for such Notes are not immediately available or who cannot deliver their Certificates and all other required documents to the Exchange Agent on or prior to the Expiration Date (as defined in the Prospectus) or who cannot complete the procedures for book-entry transfers on a timely basis, must tender their Notes according to the guaranteed delivery procedures set forth in “The Exchange Offer — Exchange Offer Procedures” in the Prospectus.


 

DELIVERY OF DOCUMENTS TO THE BOOK-ENTRY TRANSFER FACILITY DOES NOT
CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.
 
NOTE: SIGNATURES MUST BE PROVIDED BELOW
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.
 
The undersigned has completed the appropriate boxes below and signed this Letter of Transmittal to indicate the action the undersigned desires to take with respect to the Exchange Offer:
 
                   
DESCRIPTION OF NOTES
If Blank, Please Print Name and
     
Address of Registered holder(s)     Notes (Attach Additional List if Necessary)
                  Principal Amount
                  of Notes
            Aggregate
    Tendered
      Certificate
    Principal Amount
    (If Less
      Number(s)*     of Notes     than All)**
                   
                   
                   
                   
                   
                   
                   
                   
      Total:            
                   
* Need not be completed if Notes are being tendered by book-entry holders.
** Notes may be tendered in whole or in part in multiples of $1,000. All Notes held shall be deemed tendered unless a lesser number is specified in this column. See Instruction 4.
                   
 
(BOXES BELOW TO BE CHECKED BY ELIGIBLE INSTITUTIONS ONLY)
 
     
o
  CHECK HERE IF TENDERED NOTES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH DTC AND COMPLETE THE FOLLOWING:
     
   
Name of Tendering Institution:­ ­
     
   
DTC Account Number:­ ­
     
   
Transaction Code Number:­ ­
     
o
  CHECK HERE AND ENCLOSE A PHOTOCOPY OF THE NOTICE OF GUARANTEED DELIVERY IF TENDERED NOTES ARE BEING DELIVERED PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE EXCHANGE AGENT AND COMPLETE THE FOLLOWING (SEE INSTRUCTION 1):
     
   
Name(s) of Registered holder(s):­ ­
     
   
Window Ticket Number (if any):­ ­
     
   
Date of Execution of Notice of Guaranteed Delivery:­ ­
     
   
Name of Institution that Guaranteed Delivery:­ ­


2


 

     
IF GUARANTEED DELIVERY IS TO BE MADE BY BOOK-ENTRY TRANSFER:
     
   
Name of Tendering Institution:­ ­
     
   
DTC Account Number:­ ­
     
   
Transaction Code Number:­ ­
     
o
  CHECK HERE IF TENDERED NOTES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER AND NON-EXCHANGED NOTES ARE TO BE RETURNED BY CREDITING THE DTC ACCOUNT NUMBER SET FORTH ABOVE
     
o
  CHECK HERE IF YOU ARE A BROKER-DEALER WHO ACQUIRED THE NOTES FOR ITS OWN ACCOUNT AS A RESULT OF MARKET MAKING OR OTHER TRADING ACTIVITIES (A “PARTICIPATING BROKER-DEALER”) AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.
     
   
Name of Broker-Dealer:­ ­
     
   
Address to which additional copies should be sent:­ ­


3


 

Ladies and Gentlemen:
 
Upon the terms and subject to the conditions of the Exchange Offer, the undersigned hereby tenders to BEXP the above-described aggregate principal amount of BEXP’s Notes in exchange for a like aggregate principal amount of BEXP’s Exchange Notes which have been registered under the Securities Act upon the terms and subject to the conditions set forth in the Prospectus dated          , 2010 (as the same may be amended or supplemented from time to time, the “Prospectus”), receipt of which is acknowledged, and in this Letter of Transmittal (which, together with the Prospectus, constitutes the “Exchange Offer”).
 
Subject to and effective upon the acceptance for exchange of all or any portion of the Notes tendered herewith in accordance with the terms and conditions of the Exchange Offer (including, if the Exchange Offer is extended or amended, the terms and conditions of any such extension or amendment), the undersigned hereby sells, assigns and transfers to or upon the order of BEXP all right, title and interest in and to such Notes as is being tendered herewith. The undersigned hereby irrevocably constitutes and appoints the Exchange Agent as its agent and attorney-in-fact (with full knowledge that the Exchange Agent is also acting as agent of BEXP in connection with the Exchange Offer) with respect to the tendered Notes, with full power of substitution (such power of attorney being deemed to be an irrevocable power coupled with an interest) subject only to the right of withdrawal described in the Prospectus, to (i) deliver Certificates for Notes to BEXP together with all accompanying evidences of transfer and authenticity to, or upon the order of, BEXP, upon receipt by the Exchange Agent, as the undersigned’s agent, of the Exchange Notes to be issued in exchange for such Notes, (ii) present Certificates for such Notes for transfer, and to transfer the Notes on the books of BEXP, and (iii) receive for the account of BEXP all benefits and otherwise exercise all rights of beneficial ownership of such Notes, all in accordance with the terms and conditions of the Exchange Offer.
 
The undersigned hereby represents and warrants that the undersigned has full power and authority to tender, exchange, sell, assign and transfer the Notes tendered hereby and that, when the same are accepted for exchange, BEXP will acquire good, marketable and unencumbered title thereto, free and clear of all liens, restrictions, charges and encumbrances, and that the Notes tendered hereby are not subject to any adverse claims or proxies. The undersigned will, upon request, execute and deliver any additional documents deemed by BEXP or the exchange agent to be necessary or desirable to complete the exchange, assignment and transfer of the Notes tendered hereby, and the undersigned will comply with its obligations under the registration rights agreement. The undersigned agrees to all of the terms of the Exchange Offer.
 
The name(s) and address(es) of the registered holder(s) of the Notes tendered hereby should be printed above, if they are not already set forth above, as they appear on the Certificates representing such Notes. The Certificate number(s) and the Notes that the undersigned wishes to tender should be indicated in the appropriate boxes above.
 
If any tendered Notes are not exchanged pursuant to the Exchange Offer for any reason, or if Certificates are submitted for more Notes than are tendered or accepted for exchange, Certificates for such nonexchanged or nontendered Notes will be returned (or, in the case of Notes tendered by book-entry transfer, such Notes will be credited to an account maintained at DTC), without expense to the tendering holder, promptly following the expiration or termination of the Exchange Offer.
 
Tenders of Notes pursuant to any one of the procedures described in “The Exchange Offer — Exchange Offer Procedures” in the Prospectus and in the instructions attached hereto will, upon BEXP’s acceptance for exchange of such tendered Notes, constitute a binding agreement between the undersigned and BEXP upon the terms and subject to the conditions of the Exchange Offer. Under certain circumstances set forth in the Prospectus, BEXP may not be required to accept for exchange any of the Notes tendered hereby.
 
Unless otherwise indicated herein in the box entitled “Special Issuance Instructions” below, the undersigned hereby directs that the Exchange Notes be issued in the name(s) of the undersigned or, in the case of a book-entry transfer of Notes, that such Exchange Notes be credited to the account indicated above maintained at DTC. If applicable, substitute Certificates representing Notes not exchanged or not accepted for exchange will be issued to the undersigned or, in the case of a book-entry transfer of Notes, will be credited to the account indicated above maintained at DTC.
 
Similarly, unless otherwise indicated under “Special Delivery Instructions,” please deliver Exchange Notes to the undersigned at the address shown below the undersigned’s signature.


4


 

 
By tendering Notes and executing this Letter of Transmittal, the undersigned hereby represents and agrees that: (i) the undersigned is not an “affiliate” of BEXP, or if it is such an affiliate, that the Exchange Notes may not be offered for resale, resold or otherwise transferred without registration under and in compliance with the Prospectus delivery requirement of the Securities Act or an exemption therefrom, (ii) any Exchange Notes to be received by the undersigned are being acquired in the ordinary course of its business, (iii) the undersigned is not engaging in and does not intend to engage in a distribution (within the meaning of the Securities Act) of Exchange Notes to be received in the Exchange Offer, (iv) the undersigned has no arrangement or understanding with any person to participate in a distribution (within the meaning of the Securities Act) of Exchange Notes to be received in the Exchange Offer; and (v) the undersigned is not acting on behalf of any person or entity which could not truthfully make the above representations. By tendering notes pursuant to the Exchange Offer and executing this Letter of Transmittal, a holder of notes which is a broker-dealer represents, and agrees, consistent with certain interpretative letters issued by the staff of the Division of Corporate Finance of the Securities and Exchange Commission to third parties, that (A) such Notes held by the broker-dealer are held only as a nominee, or (B) such Notes were acquired by such broker-dealer for its own account as a result of market-making activities or other trading activities and it will deliver the Prospectus (as amended or supplemented from time to time) meeting the requirements of the Securities Act in connection with any resale of such Exchange Notes (provided that, by so acknowledging and by delivering a Prospectus, such broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act).
 
BEXP has agreed that, subject to the provisions of the Registration Rights Agreement, the Prospectus, as it may be amended or supplemented from time to time, may be used by a participating broker-dealer (as defined below) in connection with resales of Exchange Notes received in exchange for Notes, where such Notes were acquired by such participating broker-dealer for its own account as a result of market-making activities or other trading activities, for a period ending on the earlier of (i) 180 days after the exchange offer registration statement is declared effective or (ii) the date on which a broker-dealer is no longer required to deliver a Prospectus in connection with market-making or other trading activities. In that regard, each broker-dealer who acquired notes for its own account as a result of market-making or other trading activities (a “Participating Broker-Dealer”), by tendering such Notes and executing this Letter of Transmittal, agrees that, upon receipt of notice from BEXP of the occurrence of any event or the discovery of any fact which makes any statement contained or incorporated by reference in the Prospectus untrue in any material respect or which causes the Prospectus to omit to state a material fact necessary to make the statements contained or incorporated by reference therein, in light of the circumstances under which they were made, not misleading or of the occurrence of certain other events specified in the registration rights agreement, such Participating Broker-Dealer will suspend the sale of Exchange Notes pursuant to the Prospectus until BEXP has amended or supplemented the Prospectus to correct such misstatement or omission and has furnished copies of the amended or supplemented Prospectus to the Participating Broker-Dealer or BEXP has given notice that the sale of Exchange Notes may be resumed, as the case may be. If BEXP gives such notice to suspend the sale of Exchange Notes, it shall extend the 180-day or shorter period referred to above during which Participating Broker-Dealers are entitled to use the Prospectus in connection with the resale of Exchange Notes by the number of days during the period from and including the date of the giving of such notice to and including the date when Participating Broker-Dealers shall have received copies of the supplemented or amended Prospectus necessary to permit resales of Exchange Notes or to and including the date on which BEXP has given notice that the sale of Exchange Notes may be resumed, as the case may be.
 
Holders of Notes whose Notes are accepted for exchange will not receive accrued interest on such Notes for any period from and after the last Interest Payment Date to which interest has been paid or duly provided for on such Notes prior to the original issue date of the Exchange Notes or, if no such interest has been paid or duly provided for, will not receive any accrued interest on such Notes, and the undersigned waives the right to receive any such interest on such Notes accrued from and after such Interest Payment Date or, if no such interest has been paid or duly provided for, from and after          , 2010. The Exchange Notes will bear interest from the most recent Interest Payment Date to which interest has been paid on the Notes or, if no interest has been paid, from          , 2010.


5


 

 
The undersigned will, upon request, execute and deliver any additional documents deemed by BEXP to be necessary or desirable to complete the sale, assignment and transfer of the Notes tendered hereby. All authority herein conferred or agreed to be conferred in this Letter of Transmittal shall survive the death or incapacity of the undersigned and any obligation of the undersigned hereunder shall be binding upon the heirs, executors, administrators, personal representatives, trustees in bankruptcy, legal representatives, successors and assigns of the undersigned. Except as stated in the Prospectus, this tender is irrevocable.
 
The undersigned, by completing the box entitled “Description of Notes” above and signing this letter, will be deemed to have tendered the notes as set forth in such box.


6


 

 
SPECIAL ISSUANCE INSTRUCTIONS
(SIGNATURE GUARANTEE REQUIRED — SEE INSTRUCTION 2)
 
To be completed ONLY if Exchange Notes or Notes not tendered are to be issued in the name of someone other than the registered holder of the Notes whose name(s) appear(s) above.
o Notes not tendered to:
o Exchange Notes to:
 
Name
(Please Print)
 
Address
 
 
(Include Zip Code)
 
(Tax Identification or Social Security Number)
 
SPECIAL DELIVERY INSTRUCTIONS
(SIGNATURE GUARANTEE REQUIRED — SEE INSTRUCTION 2)
 
To be completed ONLY if Exchange Notes or Notes not tendered are to be sent to someone other than the registered holder of the Notes whose name(s) appear(s) above, or such registered holder at an address other than that shown above.
o  Notes not tendered to:
o  Exchange Notes to:
 
Name
(Please Print)
 
Address
 
 
(Include Zip Code)
 
 


7


 

 
IMPORTANT
HOLDERS: SIGN HERE
(PLEASE COMPLETE SUBSTITUTE FORM W-9 HEREIN)

 
Signature(s) of holder(s)
 
Date: ­ ­
 
(Must be signed by the registered holder(s) exactly as name(s) appear(s) on Certificate(s) for the Notes hereby tendered or on a security position listing or by person(s) authorized to become registered holder(s) by certificates and documents transmitted herewith. If signature is by trustee, executor, administrator, guardian, attorney-in-fact, officer of corporation or other person acting in a fiduciary or representative capacity, please provide the following information and see Instruction 2 below.)
 
Name(s):
 
(Please Print)
 
Capacity (full title):
 
Address:
 
 
(Include Zip Code)
 
Area Code and Telephone Number:
 
(SEE SUBSTITUTE FORM W-9 HEREIN))
GUARANTEE OF SIGNATURE(S)
(SEE INSTRUCTION 2 BELOW)
 
Authorized Signature:
 
Name:
(Please Type or Print)
 
Title:
 
Name of Firm:
 
Address:
 
 
(Include Zip Code)
 
Area Code and Telephone Number:
 
Date: ­ ­
 


8


 

 
INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THE EXCHANGE OFFER
 
1. Delivery of Letter of Transmittal and Certificates; Guaranteed Delivery Procedures.  This Letter of Transmittal is to be completed either if (a) Certificates are to be forwarded herewith or (b) tenders are to be made pursuant to the procedures for tender by book-entry transfer set forth in “The Exchange Offer” in the Prospectus and an Agent’s Message is not delivered. Certificates, or timely confirmation of a book-entry transfer of such Notes into the Exchange Agent’s account at DTC, as well as this Letter of Transmittal (or facsimile thereof), properly completed and duly executed, with any required signature guarantees, and any other documents required by this Letter of Transmittal, must be received by the Exchange Agent at its address set forth herein on or prior to the Expiration Date. Tenders by book-entry transfer may also be made by delivering an Agent’s Message in lieu thereof. Notes may be tendered in whole or in part in integral multiples of $1,000.
 
Holders who wish to tender their Notes and (i) whose Notes are not immediately available or (ii) who cannot deliver their Notes, this Letter of Transmittal and all other required documents to the Exchange Agent on or prior to the Expiration Date or (iii) who cannot complete the procedures for delivery by book-entry transfer on a timely basis, may tender their Notes by properly completing and duly executing a Notice of Guaranteed Delivery pursuant to the guaranteed delivery procedures set forth in “The Exchange Offer” in the Prospectus. Pursuant to such procedures: (i) such tender must be made by or through an Eligible Institution (as defined below); (ii) a properly completed and duly executed Notice of Guaranteed Delivery, substantially in the form made available by BEXP, or an agent’s message with respect to guaranteed delivery that is accepted by BEXP, must be received by the Exchange Agent on or prior to the Expiration Date; and (iii) the Certificates (or a book-entry confirmation) representing all tendered Notes, in proper form for transfer, together with a Letter of Transmittal (or facsimile thereof), properly completed and duly executed, with any required signature guarantees and any other documents required by this Letter of Transmittal, or a properly transmitted agent’s message, must be received by the Exchange Agent within three NASDAQ National Market trading days after the date of execution of such Notice of Guaranteed Delivery, all as provided in “The Exchange Offer” in the Prospectus.
 
The Notice of Guaranteed Delivery may be delivered by hand or transmitted by facsimile or mail to the Exchange Agent, and must include a guarantee by an Eligible Institution in the form set forth in such Notice of Guaranteed Delivery. For Notes to be properly tendered pursuant to the guaranteed delivery procedure, the Exchange Agent must receive a Notice of Guaranteed Delivery on or prior to the Expiration Date. As used herein and in the Prospectus, “Eligible Institution” means a firm or other entity identified in Rule 17Ad-15 under the Exchange Act as “an eligible guarantor institution,” including (as such terms are defined therein) (i) a bank; (ii) a broker, dealer, municipal securities broker or dealer or government securities broker or dealer; (iii) a credit union; (iv) a national securities exchange, registered securities association or clearing agency; or (v) a savings association that is a participant in a Securities Transfer Association.
 
The method of delivery of Certificates, this Letter of Transmittal and all other required documents is at the option and sole risk of the tendering holder, and the delivery will be deemed made only when actually received by the Exchange Agent. If delivery is by mail, then registered mail with return receipt requested, properly insured, or overnight delivery service is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.
 
BEXP will not accept any alternative, conditional or contingent tenders. Each tendering holder, by execution of a Letter of Transmittal (or facsimile thereof), waives any right to receive any notice of the acceptance of such tender.
 
2. Guarantee of Signatures. No signature guarantee on this Letter of Transmittal is required if:
 
  •  this Letter of Transmittal is signed by the registered holder (which term, for purposes of this document, shall include any participant in DTC whose name appears on a security position listing as the owner of the Notes (the “holder”)) of Notes tendered herewith, unless such holder(s) has completed either the box entitled “Special Issuance Instructions” or the box entitled “Special Delivery Instructions” above,
 
or
 
  •  such Notes are tendered for the account of a firm that is an Eligible Institution.
 
In all other cases, an Eligible Institution must guarantee the signature(s) on this Letter of Transmittal. See Instruction 5.


9


 

 
3. Inadequate Space.  If the space provided in the box captioned “Description of Notes” is inadequate, the Certificate number(s) and/or the principal amount of Notes and any other required information should be listed on a separate signed schedule that is attached to this Letter of Transmittal.
 
4. Partial Tenders and Withdrawal Rights.  Tenders of Notes will be accepted only in integral multiples of $1,000. If less than all the Notes evidenced by any Certificate submitted are to be tendered, fill in the principal amount of Notes which are to be tendered in the box entitled “Principal Amount of Notes Tendered.” In such case, new Certificate(s) for the remainder of the Notes that were evidenced by your old Certificate(s) will only be sent to the holder of the Notes, promptly after the Expiration Date. All Notes represented by Certificates delivered to the Exchange Agent will be deemed to have been tendered unless otherwise indicated.
 
Except as otherwise provided herein, tenders of Notes may be withdrawn at any time on or prior to the Expiration Date. In order for a withdrawal to be effective on or prior to that time, a written or facsimile transmission of such notice of withdrawal must be timely received by the Exchange Agent at one of its addresses set forth above or in the Prospectus on or prior to the Expiration Date. Any such notice of withdrawal must specify the name of the person who tendered the Notes to be withdrawn, the aggregate principal amount of Notes to be withdrawn, and (if Certificates for Notes have been tendered) the name of the registered holder of the Notes as set forth on the Certificate for the Notes, if different from that of the person who tendered such Notes. If Certificates for the Notes have been delivered or otherwise identified to the Exchange Agent, then prior to the physical release of such Certificates for the Notes, the tendering holder must submit the serial numbers shown on the particular Certificates for the Notes to be withdrawn and the signature on the notice of withdrawal must be guaranteed by an Eligible Institution, except in the case of Notes tendered for the account of an Eligible Institution. If Notes have been tendered pursuant to the procedures for book-entry transfer set forth in the Prospectus under “The Exchange Offer,” the notice of withdrawal must specify the name and number of the account at DTC to be credited with the withdrawal of Notes, in which case a notice of withdrawal will be effective if delivered to the Exchange Agent by written, telegraphic, telex or facsimile transmission. Withdrawals of tenders of Notes may not be rescinded. Notes properly withdrawn will not be deemed validly tendered for purposes of the Exchange Offer, but may be retendered at any subsequent time on or prior to the Expiration Date by following any of the procedures described in the Prospectus under “The Exchange Offer.”
 
All questions as to the validity, form and eligibility (including time of receipt) of such withdrawal notices will be determined by BEXP, in its sole discretion, whose determination shall be final and binding on all parties. BEXP, any affiliates or assigns of BEXP, the Exchange Agent or any other person shall not be under any duty to give any notification of any irregularities in any notice of withdrawal or incur any liability for failure to give any such notification. Any Notes that have been tendered but that are withdrawn will be returned to the holder thereof without cost to such holder promptly after withdrawal.
 
5. Signatures on Letter of Transmittal, Assignments and Endorsements.  If this Letter of Transmittal is signed by the registered holder(s) of the Notes tendered hereby, the signature(s) must correspond exactly with the name(s) as written on the face of the Certificate(s) without alteration, enlargement or any change whatsoever.
 
If any Notes tendered hereby are owned of record by two or more joint owners, all such owners must sign this Letter of Transmittal.
 
If any tendered Notes are registered in different name(s) on several Certificates, it will be necessary to complete, sign and submit as many separate Letters of Transmittal (or facsimiles thereof) as there are different registrations of Certificates.
 
If this Letter of Transmittal or any Certificates or bond powers are signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, such persons should so indicate when signing and, unless waived by BEXP, must submit proper evidence satisfactory to BEXP, in its sole discretion, of each such person’s authority to so act.
 
When this Letter of Transmittal is signed by the registered owner(s) of the Notes listed and transmitted hereby, no endorsement(s) of Certificate(s) or separate bond power(s) is required unless Exchange Notes are to be issued in the name of a person other than the registered holder(s). Signature(s) on such Certificate(s) or bond power(s) must be guaranteed by an Eligible Institution.


10


 

 
If this Letter of Transmittal is signed by a person other than the registered owner(s) of the Notes listed, the Certificates must be endorsed or accompanied by appropriate bond powers, signed exactly as the name or names of the registered owner(s) appear(s) on the Certificates, and also must be accompanied by such opinions of counsel, certifications and other information as BEXP or the Trustee for the Notes may require in accordance with the restrictions on transfer applicable to the Notes. Signatures on such Certificates or bond powers must be guaranteed by an Eligible Institution.
 
6. Special Issuance and Delivery Instructions.  If Exchange Notes are to be issued in the name of a person other than the signer of this Letter of Transmittal, or if Exchange Notes are to be sent to someone other than the signer of this Letter of Transmittal or to an address other than that shown above, the appropriate boxes on this Letter of Transmittal should be completed. Certificates for Notes not exchanged will be returned by mail or, if tendered by book-entry transfer, by crediting the account indicated above maintained at DTC. See Instruction 4.
 
7. Irregularities.  BEXP will determine, in its sole discretion, all questions as to the form of documents, validity, eligibility (including time of receipt) and acceptance for exchange of any tender of Notes, which determination shall be final and binding on all parties. BEXP reserves the absolute right to reject any and all tenders determined by it not to be in proper form or the acceptance of which, or exchange for which may, in the view of counsel to BEXP be unlawful. BEXP also reserves the absolute right, subject to applicable law, to waive any of the conditions of the Exchange Offer set forth in the Prospectus under “The Exchange Offer” or any conditions or irregularities in any tender of Notes of any particular holder whether or not similar conditions or irregularities are waived in the case of other holders. BEXP’s interpretation of the terms and conditions of the Exchange Offer (including this Letter of Transmittal and the instructions hereto) will be final and binding. No tender of Notes will be deemed to have been validly made until all irregularities with respect to such tender have been cured or waived. BEXP, any affiliates or assigns of BEXP, the Exchange Agent, or any other person shall not be under any duty to give notification of any irregularities in tenders or incur any liability for failure to give such notification.
 
8. Questions, Requests for Assistance and Additional Copies.  Questions and requests for assistance may be directed to the Exchange Agent at its address and telephone number set forth on the front of this Letter of Transmittal. Additional copies of the Prospectus, the Notice of Guaranteed Delivery and the Letter of Transmittal may be obtained from the Exchange Agent or from your broker, dealer, commercial bank, trust company or other nominee.
 
9. Backup Withholding; Substitute Form W-9.  Under U.S. federal income tax law, a holder (including, for purposes of this section, beneficial owners of the Notes) whose tendered Notes are accepted for exchange is required to provide the Exchange Agent with such holder’s correct taxpayer identification number (“TIN”) on Substitute Form W-9 below. If such holder is an individual, the TIN is the holder’s social security number. Other holders should consult the enclosed “Guidelines for Certification of Taxpayer Number on Substitute Form W-9” for information on the correct TIN to report. If the Exchange Agent is not provided with the correct TIN, the Internal Revenue Service (the “IRS”) may subject the holder or other payee to a $50 penalty. In addition, payments to such holders or other payees with respect to Notes exchanged pursuant to the Exchange Offer may be subject to backup withholding at a rate of 28% for amounts paid during 2010 (which rate currently is scheduled to increase to 31% for taxable years beginning on or after January 1, 2011).
 
The box in Part 2 of the Substitute Form W-9 may be checked if the tendering holder has not been issued a TIN and has applied for a TIN or intends to apply for a TIN in the near future. If the box in Part 2 is checked, the holder or other payee must also complete the box captioned Certificate of Awaiting Taxpayer Identification Number below in order to avoid backup withholding. Notwithstanding that the box in Part 2 is checked and the box captioned Certificate of Awaiting Taxpayer Identification Number is completed, the holder will be subject to backup withholding on all payments made after seven business days after the Exchange Agent receives a Certificate of Awaiting Taxpayer Identification Number until a properly certified TIN is provided to the Exchange Agent. The Exchange Agent will retain such amounts withheld during the 60-day period following the date of the Substitute Form W-9. If the holder furnishes the Exchange Agent with its TIN within 60 days after the date of the Substitute Form W-9, the amounts retained during the 60-day period will be remitted to the holder and no further amounts shall be retained or withheld from payments made to the holder thereafter. If, however, the holder has not provided the Exchange Agent with its TIN within such 60-day period, amounts withheld will be remitted to the IRS as backup withholding. In addition, backup withholding will apply to all payments made thereafter until a correct TIN is provided.


11


 

 
Certain holders (including, among others, corporations, financial institutions and certain foreign persons) may not be subject to the backup withholding and reporting requirements. Such holders should nevertheless complete the attached Substitute Form W-9 and write “Exempt” on the face thereof, to avoid possible erroneous backup withholding. A foreign person may qualify as an exempt recipient by submitting a properly completed Certification of Foreign Status to the Exchange Agent on IRS Form W-8BEN, W-8ECI, W-8EXP, or W-8IMY, as applicable, signed under penalties of perjury, attesting to that holder’s exempt status. Please consult the enclosed “Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9” for additional guidance on which holders are exempt from backup withholding.
 
Backup withholding is not an additional U.S. federal income tax. Rather, the U.S. federal income tax liability of a person subject to backup withholding will be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund may be obtained, provided that the required information is furnished to the IRS.
 
10. Waiver of Conditions. BEXP reserves the absolute right to waive satisfaction of any or all conditions enumerated in the Prospectus.
 
11. No Conditional Tenders. No alternative, conditional or contingent tenders will be accepted. All tendering holders of Notes, by execution of this Letter of Transmittal, shall waive any right to receive notice of the acceptance of Notes for exchange.
 
Neither BEXP, the Exchange Agent nor any other person is obligated to give notice of any defect or irregularity with respect to any tender of Notes nor shall any of them incur any liability for failure to give any such notice.
 
12. Lost, Destroyed or Stolen Certificates. If any Certificate(s) representing Notes have been lost, destroyed or stolen, the holder should promptly notify the Exchange Agent. The holder will then be instructed as to the steps that must be taken in order to replace the Certificate(s). This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, destroyed or stolen Certificate(s) have been followed.
 
13. Security Transfer Taxes. Holders who tender their Notes for exchange will not be obligated to pay any transfer taxes in connection therewith. If, however, Exchange Notes are to be delivered to, or are to be issued in the name of, any person other than the registered holder of the Notes tendered, or if a transfer tax is imposed for any reason other than the exchange of Notes in connection with the Exchange Offer, then the amount of any such transfer tax (whether imposed on the registered holder or any other persons) will be payable by the tendering holder. If satisfactory evidence of payment of such taxes or exemption therefrom is not submitted with the Letter of Transmittal, the amount of such transfer taxes will be billed directly to such tendering holder.


12


 

IMPORTANT: THIS LETTER OF TRANSMITTAL (OR FACSIMILE THEREOF) AND ALL OTHER
REQUIRED DOCUMENTS MUST BE RECEIVED BY THE EXCHANGE AGENT ON OR PRIOR TO
5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
TO BE COMPLETED BY ALL TENDERING SECURITY HOLDERS
(SEE INSTRUCTION 9)
 
                   
PAYER’S NAME: WELLS FARGO BANK, N.A.
NAME:
SUBSTITUTE
    Part 1 — PLEASE PROVIDE YOUR TIN IN THE BOX AT RIGHT AND CERTIFY BY SIGNING AND DATING BELOW.     TIN:
Social Security Number OR
Employer Identification Number
                   
FORM W-9
Department of the Treasury
Internal Revenue Service
    PART 2 — TIN Applied for o
CERTIFICATION UNDER PENALTIES OF PERJURY, I CERTIFY THAT:
     
             
Payor’s Request for Taxpayer
Identification Number (“TIN”)
   
(1) the number shown on this form is my correct Taxpayer Identification Number (or I am waiting for a number to be issued to me); and
     
     
(2) I am not subject to backup withholding either because (a) I am exempt from backup withholding or (b) I have not been notified by the Internal Revenue Service (the “IRS”) that I am subject to backup withholding as a result of a failure to report all interest or dividends or (c) the IRS has notified me that I am no longer subject to backup withholding; and
     
     
(3) I am a U.S. person (including a U.S. resident alien).
     
                   
      CERTIFICATE INSTRUCTIONS: You must cross out item (2) above if you have been notified by the IRS that you are subject to backup withholding because of underreporting of interest or dividends on your tax return. However, if after being notified by the IRS that you were subject to backup withholding, you received another notification from the IRS that you were no longer subject to backup withholding, do not cross out item (2). (Also see instructions in the attached Guidelines.)
             
     
Signature:­ ­
   
Date:­ ­, 2010
                   
 
NOTE:   FAILURE TO COMPLETE AND RETURN THIS FORM MAY RESULT IN BACKUP WITHHOLDING ON ANY PAYMENTS MADE TO YOU IN CONNECTION WITH THE EXCHANGE OFFER. PLEASE REVIEW THE ENCLOSED GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE FORM W-9 FOR ADDITIONAL DETAILS.
 
YOU MUST COMPLETE THE FOLLOWING CERTIFICATE IF YOU CHECKED THE BOX IN PART 2
OF SUBSTITUTE FORM W-9, AND THUS, YOU ARE AWAITING (OR WILL SOON APPLY FOR) A
TAXPAYER IDENTIFICATION NUMBER.
 
CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
 
I certify under penalties of perjury that a taxpayer identification number has not been issued to me, and either (a) I have mailed or delivered an application to receive a taxpayer identification number to the appropriate Internal Revenue Service Center or Social Security Administration Office or (b) I intend to mail or deliver an application in the near future. I understand that if I do not provide a taxpayer identification number by the time of the exchange, all reportable payments made to me thereafter will be subject to backup withholding until I provide a number.
 
Signature: ­ ­  Date:­ ­, 2010


13


 

 
 
GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
NUMBER ON SUBSTITUTE FORM W-9
 
GUIDELINES FOR DETERMINING THE PROPER IDENTIFICATION NUMBER TO GIVE THE PAYER — Social Security numbers have nine digits separated by two hyphens: i.e., 000-00-0000. Employer identification numbers have nine digits separated by only one hyphen: i.e., 00-0000000. The table below will help determine the name and number to give the Payer.
 
           
    Give the name and
          SOCIAL SECURITY
For this type of account:   number of:
1.
    An individual’s account   The individual
2.
    Two or more individuals (joint account)   The actual owner of the account or, if combined funds, the first individual on the account(1)
3.
    Custodian account of a minor (Uniform Gift to Minors Act)   The minor(2)
4.
   
a. The usual revocable savings trust account (grantor is also trustee)
  The grantor-trustee(1)
     
b. So-called trust account that is not a legal or valid trust under state law
  The actual owner(1)
5.
    Sole proprietorship account or single owner LLC   The owner(3)
           
           
           
 
           
    Give the name and
          EMPLOYER IDENTIFICATION
For this type of account:   number of:
6.
    A valid trust, estate, or pension trust   Legal entity(4)
7.
    Corporation or other entity electing corporate status on IRS Form 8832   The corporation
8.
    Association, club, religious, charitable, educational, or other tax-exempt organization account   The organization
9.
    Partnership   The partnership
10.
    A broker or registered nominee   The broker or nominee
11.
    Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district or prison) that receives agricultural program payments   The public entity
           
(1) List first and circle the name of the person whose number you furnish. If only one person on a joint account has a social security number that person’s number must be furnished.
(2) Circle the minor’s name and furnish the minor’s social security number.
(3) You must show your individual name. You may also enter your business or “doing business as” name. You may use either your social security number or, if you have one, your employer identification number.
(4) List first and circle the name of the legal trust, estate or pension trust. Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.
 
NOTE:   If no name is circled when there is more than one name listed, the number will be considered to be that of the first name listed.


14


 

 
GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
NUMBER ON SUBSTITUTE FORM W-9
Page 2
 
Obtaining a Number
 
If you don’t have a taxpayer identification number or you don’t know your number, obtain Form SS-5, Application for a Social Security Number Card, or Form SS-4, Application for Employer Identification Number, at a local office of the Social Security Administration or the Internal Revenue Service and apply for a number. You may also obtain Form SS-4 by calling the IRS at 1-800-TAX-FORM.
 
Payees Exempt from Backup Withholding
 
Payees specifically exempted from backup withholding on ALL payments include the following:
 
  •  An organization exempt from tax under Section 501(a), an individual retirement account (IRA), or a custodial account under Section 403(b)(7), if the account satisfies the requirements of Section 401(f)(2).
 
  •  The United States or a state thereof, the District of Columbia, a possession of the United States, or a political subdivision or wholly-owned agency or instrumentality or any one or more of the foregoing.
 
  •  An international organization or any agency or instrumentality thereof.
 
Payees specifically exempted from backup withholding on interest and dividend payments include the following:
 
  •  A corporation.
 
  •  A financial institution.
 
  •  A registered dealer in securities or commodities registered in the U.S., the District of Columbia, or a possession of the U.S.
 
  •  A real estate investment trust.
 
  •  A common trust fund operated by a bank under section 584(a).
 
  •  An entity registered at all times during the tax year under the Investment Company Act of 1940.
 
  •  A foreign central bank of issue.
 
  •  A middleman known in the investment community as a nominee or who is listed in the most recent publication of the American Society of Corporate Secretaries, Inc., Nominee List.
 
  •  A futures commission merchant registered with the Commodity Futures Trading Commission
 
Payments of dividends and patronage dividends not generally subject to backup withholding include the following:
 
  •  Payments to nonresident aliens subject to withholding under section 1441.
 
  •  Payments to partnerships not engaged in a trade or business in the U.S. and that have at least one nonresident partner.
 
  •  Payments of patronage dividends not paid in money.
 
  •  Payments made by certain foreign organizations.
 
  •  Section 404(k) payments made by an ESOP.
 
Payments of interest not generally subject to backup withholding include the following:
 
  •  Payments of interest on obligations issued by individuals. Note: You may be subject to backup withholding if this interest is $600 or more and is paid in the course of the payer’s trade or business and you have not provided your correct taxpayer identification number to the payer.
 
  •  Payments of tax-exempt interest (including exempt-interest dividends under section 852).


15


 

 
  •  Payments described in section 6049(b)(5) to non-resident aliens.
 
  •  Payments on tax-free covenant bonds under section 1451.
 
  •  Payments made by certain foreign organizations.
 
  •  Mortgage interest paid to you.
 
Exempt payees described above may file Form W-9 to avoid possible erroneous backup withholding. FILE THIS FORM WITH THE PAYER, FURNISH YOUR TAXPAYER IDENTIFICATION NUMBER, WRITE “EXEMPT” ON THE FACE OF THE FORM, SIGN AND DATE THE FORM, AND RETURN IT TO THE PAYER.
 
Certain payments other than interest, dividends, and patronage dividends that are not subject to information reporting are also not subject to backup withholding. For details, see sections 6041, 6041A, 6042, 6044, 6045, 6049, 6050A, 6050N, and their regulations.
 
Privacy Act Notice.  Section 6109 requires most recipients of dividend, interest, or other payments to give taxpayer identification numbers to payers who must report the payments to IRS. The IRS uses the numbers for identification purposes and to help verify the accuracy of tax returns. The IRS also may provide this information to the Department of Justice for civil and criminal litigation and to cities, states, and the District of Columbia to carry out their tax laws. Payers must be given the numbers whether or not recipients are required to file tax returns. Payers must generally withhold 28% of taxable interest, dividend, and certain other payments to a payee who does not furnish a taxpayer identification number to a payer. Certain penalties may also apply.
 
Penalties
 
(1) Penalty for Failure to Furnish Taxpayer Identification Number. — If you fail to furnish your taxpayer identification number to a payer, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
 
(2) Civil Penalty for False information With Respect to Withholding. — If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a penalty of $500.
 
(3) Criminal Penalty for Falsifying Information. — Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.
 
FOR ADDITIONAL INFORMATION, CONTACT YOUR TAX CONSULTANT OR THE INTERNAL REVENUE SERVICE


16

EX-99.3 5 h78318a1exv99w3.htm EX-99.3 exv99w3
 
Exhibit 99.3
 
BRIGHAM EXPLORATION COMPANY
Letter to The Depository Trust Company Participants
for Tender of All Outstanding
8.750% Senior Notes due 2018
in Exchange for Registered
8.750% Senior Notes due 2018
 
 
THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON
          , 2010 UNLESS EXTENDED (SUCH TIME AND DATE, AS THE SAME
MAY BE EXTENDED FROM TIME TO TIME, THE“EXPIRATION DATE”).
TENDERS MAY BE WITHDRAWN AT ANY TIME PRIOR TO THE EXPIRATION DATE.
 
 
          , 2010
 
To The Depository Trust Company Participants:
 
We are enclosing with this letter the materials listed below relating to the offer by Brigham Exploration Company (“BEXP”) to exchange its 8.750% Senior Notes due 2018 fully and unconditionally guaranteed by all of its restricted subsidiaries (the “Exchange Notes”), the issuance of which has been registered under the Securities Act of 1933, for a like principal amount of its issued and outstanding unregistered 8.750% Senior Notes due 2018 fully and unconditionally guaranteed by all of its restricted subsidiaries (the “Outstanding Notes”), upon the terms and subject to the conditions set forth in BEXP’s prospectus dated          , 2010 and the related letter of transmittal.
 
We are enclosing copies of the following documents:
 
1. Prospectus dated          , 2010;
 
2. Letter of transmittal, together with accompanying Substitute Form W-9 Guidelines;
 
3. Notice of guaranteed delivery; and
 
4. Letter that may be sent to your clients for whose account you hold Outstanding Notes in your name or in the name of your nominee, with space provided for obtaining that client’s instruction with regard to the exchange offer.
 
We urge you to contact your clients promptly. Please note that the exchange offer will expire at 5:00 p.m., New York City time, on          , 2010, unless sooner terminated or extended.
 
The exchange offer is not conditioned upon any minimum aggregate principal amount of Outstanding Notes being tendered for exchange.
 
Pursuant to the letter of transmittal, each holder of Outstanding Notes will represent to BEXP and the guarantors that:
 
• any Exchange Notes received are being acquired in the ordinary course of business of the person receiving such Exchange Notes;
 
  •  such person does not have an arrangement or understanding with any person to participate in the distribution of the Outstanding Notes or the Exchange Notes within the meaning of the Securities Act;
 
  •  such person is not an “affiliate,” as defined in Rule 405 under the Securities Act, of BEXP or any guarantor, or, if it is such an affiliate, it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable;


 

 
  •  such person is not engaged in, and does not intend to engage in, a distribution of Exchange Notes;
 
  •  if such person is a broker-dealer, it will receive Exchange Notes in exchange for Outstanding Notes that were acquired for its own account as a result of market-making activities or other trading activities, and it will deliver a prospectus in connection with any resale of such Exchange Notes; however, by so acknowledging and by delivering a prospectus, it will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act;
 
  •  if such person is a broker-dealer, it did not purchase the Outstanding Notes to be exchanged for the Exchange Notes from BEXP or any guarantor; and
 
  •  such person is not acting on behalf of any person who could not truthfully and completely make the foregoing representations.
 
The enclosed Letter to Clients contains an authorization by the beneficial owners of the Outstanding Notes for you to make the foregoing representations.
 
BEXP will not pay any fee or commission to any broker or dealer or to any other person (other than the exchange agent) in connection with the solicitation of tenders of Outstanding Notes under the exchange offer. BEXP will pay or cause to be paid any transfer taxes payable on the transfer of Outstanding Notes to it, except as otherwise provided in Instruction 13 of the enclosed letter of transmittal.
 
Additional copies of the enclosed materials may be obtained from us upon request.
 
Very truly yours,
 
BRIGHAM EXPLORATION COMPANY


2

EX-99.4 6 h78318a1exv99w4.htm EX-99.4 exv99w4
 
Exhibit 99.4
 
BRIGHAM EXPLORATION COMPANY
Letter to Clients
for Tender of All Outstanding
8.750% Senior Notes due 2018
in Exchange for Registered
8.750% Senior Notes due 2018
 
 
THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON          , 2010, UNLESS SOONER TERMINATED OR EXTENDED. OUTSTANDING NOTES TENDERED IN THE EXCHANGE OFFER MAY BE WITHDRAWN AT ANY TIME PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
 
 
 
To Our Clients:
 
We are enclosing with this letter a prospectus dated          , 2010 of Brigham Exploration Company (“BEXP”) and the related letter of transmittal. These two documents together constitute BEXP’s offer to exchange its 8.750% Senior Notes due 2018, fully and unconditionally guaranteed by all of its restricted subsidiaries (the “Exchange Notes”), the issuance of which has been registered under the Securities Act of 1933, for a like principal amount of its issued and outstanding unregistered 8.750% Senior Notes due 2018 fully and unconditionally guaranteed by all of its restricted subsidiaries (the “Outstanding Notes”). The exchange offer is not conditioned upon any minimum aggregate principal amount of Outstanding Notes being tendered for exchange.
 
We are the holder of record of Outstanding Notes held by us for your own account. A tender of your Outstanding Notes held by us can be made only by us as the record holder according to your instructions. The letter of transmittal is furnished to you for your information only and cannot be used by you to tender Outstanding Notes held by us for your account.
 
We request instructions as to whether you wish to tender any or all of the Outstanding Notes held by us for your account under the terms and conditions of the exchange offer. We also request that you confirm that we may, on your behalf, make the representations contained in the letter of transmittal.
 
Pursuant to the letter of transmittal, each holder of Outstanding Notes will represent to BEXP and the guarantors that:
 
  •  any Exchange Notes received are being acquired in the ordinary course of business of the person receiving such Exchange Notes;
 
  •  such person does not have an arrangement or understanding with any person to participate in the distribution of the Outstanding Notes or the Exchange Notes within the meaning of the Securities Act;
 
  •  such person is not an “affiliate,” as defined in Rule 405 under the Securities Act, of BEXP or any guarantor, or, if it is such an affiliate, it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable;
 
  •  such person is not engaged in, and does not intend to engage in, a distribution of Exchange Notes;
 
  •  if such person is a broker-dealer, it will receive Exchange Notes in exchange for Outstanding Notes that were acquired for its own account as a result of market-making activities or other trading activities, and it will deliver a prospectus in connection with any resale of such Exchange Notes; however, by so acknowledging and by delivering a prospectus, it will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act;
 
  •  if such person is a broker-dealer, it did not purchase the Outstanding Notes to be exchanged for the Exchange Notes from BEXP or any guarantor; and
 
  •  such person is not acting on behalf of any person who could not truthfully and completely make the foregoing representations.
 
Very truly yours,


 

 
Please return your instructions to us in the enclosed envelope within ample time to permit us to submit a tender on your behalf prior to the expiration date of the exchange offer.
 
INSTRUCTION TO DTC PARTICIPANT
 
To Participant of The Depository Trust Company:
 
The undersigned hereby acknowledges receipt and review of the prospectus dated          , 2010 of BEXP and the related letter of transmittal. These two documents together constitute BEXP’s offer to exchange its 8.750% Senior Notes due 2018, fully and unconditionally guaranteed by all of its restricted subsidiaries (the “Exchange Notes”), the issuance of which has been registered under the Securities Act of 1933, for a like principal amount of its issued and outstanding unregistered 8.750% Senior Notes due 2018 fully and unconditionally guaranteed by all of its restricted subsidiaries (the “Outstanding Notes”).
 
This will instruct you, the registered holder and DTC participant, as to the action to be taken by you relating to the exchange offer for the Outstanding Notes held by you for the account of the undersigned.
 
The aggregate principal amount of the Outstanding Notes held by you for the account of the undersigned is (fill in amount): $
 
With respect to the exchange offer, the undersigned hereby instructs you (check appropriate box):
 
o To TENDER all Outstanding Notes held by you for the account of the undersigned.
 
o To TENDER the following amount of Outstanding Notes held by you for the account of the undersigned:
 
$
 
o NOT to TENDER any Outstanding Notes held by you for the account of the undersigned.
 
If no box is checked, a signed and returned Instruction to DTC Participant will be deemed to instruct you to tender all Outstanding Notes held by you for the account of the undersigned.
 
If the undersigned instructs you to tender the Outstanding Notes held by you for the account of the undersigned, it is understood that you are authorized to make, on behalf of the undersigned (and the undersigned, by its signature below, hereby makes to you), the representations contained in the letter of transmittal that are to be made with respect to the undersigned as a beneficial owner, including, but not limited to, the representations that:
 
  •  any Exchange Notes received are being acquired in the ordinary course of business of the undersigned;
 
  •  the undersigned does not have an arrangement or understanding with any person to participate in the distribution of the Outstanding Notes or the Exchange Notes within the meaning of the Securities Act;
 
  •  the undersigned is not an “affiliate,” as defined in Rule 405 under the Securities Act, of BEXP or any guarantor, or, if it is such an affiliate, it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable;
 
  •  the undersigned is not engaged in, and does not intend to engage in, a distribution of Exchange Notes;
 
  •  if the undersigned is a broker-dealer, it will receive Exchange Notes in exchange for Outstanding Notes that were acquired for its own account as a result of market-making activities or other trading activities, and it will deliver a prospectus in connection with any resale of such Exchange Notes; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act;
 
  •  if the undersigned is a broker-dealer, it did not purchase the Outstanding Notes to be exchanged for the Exchange Notes from BEXP or any guarantor; and
 
  •  the undersigned is not acting on behalf of any person who could not truthfully and completely make the foregoing representations.


2


 

 
SIGN HERE
 
Name of beneficial owner(s): 
 
Signature(s): 
 
Name(s) (please print): 
 
Address: 
 
Telephone Number: 
 
Taxpayer Identification or Social Security Number: 
 
Date: 


3

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