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</o:shapelayout></xml><![endif]--></head><body lang=EN-CA link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>Hello,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Another attempt at raising the flag on the changes to Applicant Support.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Bid Credit, multiplier or other mechanism could create an increase in the volume of AS applications from applicants who otherwise would not have considered AS because of new larger financial incentives. Concerns and comments that need to be addressed:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><ol style='margin-top:0cm' start=1 type=1><li class=MsoListParagraphCxSpFirst style='margin-left:0cm;mso-add-space:auto;mso-list:l1 level1 lfo3'><span lang=EN-US style='font-size:11.0pt'>How AS Applicants are provided with sufficient time to gain sufficient auction knowledge, impact on business plans, raise funding, etc. <o:p></o:p></span></li><li class=MsoListParagraphCxSpMiddle style='margin-left:0cm;mso-add-space:auto;mso-list:l1 level1 lfo3'><span lang=EN-US style='font-size:11.0pt'>Do not consider financial benefits of the AS applicants entering into a JV with a third-party creating a potential opportunity for gaming – see my email from last week. <o:p></o:p></span></li><li class=MsoListParagraphCxSpMiddle style='margin-left:0cm;mso-add-space:auto;mso-list:l1 level1 lfo3'><span lang=EN-US style='font-size:11.0pt'>Implications on maximum values – low/mid/high all impact strategy and raise additional questions and concerns i.e. significant maximum values increased the financial benefits and potential for abuse <o:p></o:p></span></li><li class=MsoListParagraphCxSpMiddle style='margin-left:0cm;mso-add-space:auto;mso-list:l1 level1 lfo3'><span lang=EN-US style='font-size:11.0pt'>Consideration on the repayment of auction funds? What if they are wildly successful and recover all funds in say the first year? Consideration to future AS might be nice… <o:p></o:p></span></li><li class=MsoListParagraphCxSpMiddle style='margin-left:0cm;mso-add-space:auto;mso-list:l1 level1 lfo3'><span lang=EN-US style='font-size:11.0pt'>Repayment of auction ‘funds’ – Rationale 9 should state that repayment includes auction credits i.e. <i>“shall require the applicant to repay the full amount of financial support <u>received including auction bid credit, multiplier or other mechanism</u> through the ASP Program plus an additional ten percent (10%)”.<o:p></o:p></i></span></li><li class=MsoListParagraphCxSpMiddle style='margin-left:0cm;mso-add-space:auto;mso-list:l1 level1 lfo3'><span lang=EN-US style='font-size:11.0pt'>Implications on other contention set applicants who are impacted by the AS applicants who are financially incentivized to only participate in the Auction of Last Resort. The AS Applicant now holds the Trump card to use the Auction of Last Resort and thereby limiting everyone else in that contention set from the ability to use another auction method. See item #2 re: JV. There should not be a race to the AS Applicant to enter into a JV to gain the auction multiplier – if the credit no longer apply to this, we need to state it but again, it then changes the dynamics on resolving the contention set.<o:p></o:p></span></li></ol><p class=MsoListParagraphCxSpLast><span lang=EN-US style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal>In short, the multiplier has been added without the requisite consideration required to prevent the very concern everyone was trying to prevent in the 2012 round. The bid credits, multiplier needs further deliberation to carefully balance the needs of all stakeholders while ensuring we’re not opening the doors to abuse and gaming. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Cheers,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Christa<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span lang=EN-US style='font-size:9.0pt;color:black;mso-fareast-language:EN-CA'>Christa Taylor<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:9.0pt;color:black;mso-fareast-language:EN-CA'>CMO | </span><span lang=EN-US style='font-size:9.0pt;color:blue;mso-fareast-language:EN-CA'><a href="http://www.mmx.co/"><span style='color:blue'>MMX.CO</span></a></span><span lang=EN-US style='font-size:9.0pt;color:black;mso-fareast-language:EN-CA'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:9.0pt;color:black;mso-fareast-language:EN-CA'>M: +1 (604) 961-9460<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:9.0pt;color:black;mso-fareast-language:EN-CA'>Email: </span><span lang=EN-US style='mso-fareast-language:EN-CA'><a href="mailto:christa@mmx.co"><span style='font-size:9.0pt;color:blue'>christa@mmx.co</span></a></span><span lang=EN-US style='font-size:9.0pt;color:black;mso-fareast-language:EN-CA'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:5.0pt;color:black;mso-fareast-language:EN-CA'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-CA'><img border=0 width=126 height=30 style='width:1.3166in;height:.3083in' id="Picture_x0020_1" src="cid:image001.png@01D65A80.51814B70" alt="/Users/johnmatson/Library/Containers/com.microsoft.Outlook/Data/Library/Caches/Signatures/signature_368125154"></span><span style='mso-fareast-language:EN-CA'><o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-CA'><o:p> </o:p></span></p><p class=MsoNormal><i><span style='font-size:8.0pt;font-family:"Calibri Light",sans-serif;color:#1F3763;background:white;mso-fareast-language:EN-CA'>The content of this email is confidential and intended for the recipient specified in message only. It is strictly forbidden to share any part of this message with any third party, without a written consent of the sender. If you received this message by mistake, please reply to this message and follow with its deletion, so that we can ensure such a mistake does not occur in the future. </span></i><span style='mso-fareast-language:EN-CA'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>