Sprouts Farmers Market 2013 Annual Report Download - page 135

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Table of Contents
affiliates of Apollo hold a majority of the voting power of CEVA and have the right to elect a majority of the board of CEVA. CEVA
may be deemed to be under common control with us, but this statement is not meant to be an admission that common control
exists. As a result, it appears that we are required to provide disclosures as set forth below pursuant to Section 219 of the Iran
Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) and Section 13(r) of the Exchange Act.
Apollo has informed us that CEVA has provided it with the information below relevant to Section 13(r) of the Exchange Act.
The disclosure below does not relate to any activities conducted by us and does not involve us or our management. The disclosure
relates solely to activities conducted by CEVA and its consolidated subsidiaries. We have not independently verified or participated
in the preparation of the disclosure below.
“Through an internal review of its global operations, CEVA has identified the following transactions in an Initial Notice of
Voluntary Self
-Disclosure that CEVA filed with the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) on
October 28, 2013. CEVA’s review is ongoing. CEVA will file a further report with OFAC after completing its review.
The internal review indicates that, in February 2013, CEVA Freight Holdings (Malaysia) SDN BHD (“CEVA Malaysia”)
provided customs brokerage for export and local haulage services for a shipment of polyethylene resin to Iran shipped on a vessel
owned and/or operated by HDS Lines, also an SDN. The revenues and net profits for these services were approximately $779.54
USD and $311.13 USD, respectively. In September 2013, CEVA Malaysia provided customs brokerage services for the import into
Malaysia of fruit juice from Alifard Co. in Iran via HDS Lines. The revenues and net profits for these services were approximately
$227.41 USD and $89.29 USD, respectively.
These transactions violate the terms of internal CEVA compliance policies, which prohibit transactions involving Iran. Upon
discovering these transactions, CEVA promptly launched an internal investigation, and is taking action to block and prevent such
transactions in the future. CEVA intends to cooperate with OFAC in its review of this matter.”
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